Mid-Southern Bancorp, Inc. (the “Company”) (NASDAQ: MSVB), the
holding company for Mid-Southern Savings Bank, FSB (the “Bank”),
reported net income for the third quarter ended September 30,
2022 of $512,000 or $0.19 per diluted share compared to $456,000 or
$0.16 per diluted share for the same period in 2021. For the nine
months ended September 30, 2022, the Company reported net
income of $1.5 million or $0.55 per diluted share compared to
$1.2 million or $0.42 per diluted share for the same period in
2021.
Income Statement Review
Net interest income after provision for loan
losses increased $176,000, or 10.1%, for the quarter ended
September 30, 2022 to $1.9 million as compared to the
quarter ended September 30, 2021. Total interest income
increased $391,000, or 20.5%, when comparing the two periods, due
to increases in the average balances and yields of interest-earning
assets. The average balance of interest-earning assets increased to
$267.9 million for the quarter ended September 30, 2022
from $238.7 million for the quarter ended September 30,
2021, due primarily to increases in loans receivable and investment
securities, partially offset by lower interest-bearing deposits
with banks. The average yield on interest-earning assets and
tax-equivalent yield on interest-earning assets(1) increased to
3.42% and 3.59%, respectively, for the quarter ended
September 30, 2022 from 3.19% and 3.37%, respectively, for the
quarter ended September 30, 2021, due primarily to higher
yields from investment securities and a shift in the investment
asset mix. Total interest expense increased $130,000, or 79.3%,
when comparing the two periods due to an increase in the average
balance of interest-bearing liabilities and in the average cost of
interest-bearing liabilities. The average balance of
interest-bearing liabilities increased to $204.3 million for
the quarter ended September 30, 2022 from $174.6 million
for the same period in 2021, due primarily to increases in deposit
accounts and FHLB borrowings. The average cost of interest-bearing
liabilities increased to 0.57% for the quarter ended
September 30, 2022 from 0.38% for the same period in 2021. As
a result of the changes in interest-earning assets and
interest-bearing liabilities, the net interest rate spread and net
interest rate spread on a tax-equivalent basis(1) increased to
2.85% and 3.02%, respectively for the quarter ended September 30,
2022 from 2.81% and 2.99%, respectively, for the quarter ended
September 30, 2021. The net interest margin and net interest margin
on a tax-equivalent basis(1) increased to 2.99% and 3.16%,
respectively, for the quarter ended September 30, 2022 from
2.92% and 3.09%, respectively, for the quarter ended
September 30, 2021.
Net interest income after provision for loan
losses increased $436,000, or 8.5%, for the nine months ended
September 30, 2022 to $5.6 million as compared to
$5.1 million for the nine months ended September 30,
2021. Total interest income increased $687,000, or 12.2%, when
comparing the two periods, due to increases in the average balances
and yields of interest-earning assets. The average balance of
interest-earning assets increased to $260.4 million for the
nine months ended September 30, 2022 from $235.0 million
for the nine months ended September 30, 2021, due primarily to
increases in loans receivable and investment securities, partially
offset by lower interest-bearing deposits with banks. The average
yield on interest-earning assets and the average tax-equivalent
yield on interest-earning assets(1) increased to 3.24% and 3.41%,
respectively, for the nine months ended September 30, 2022
from 3.20% and 3.38%, respectively, for the nine months ended
September 30, 2021, due primarily to a shift in the investment
asset mix. Total interest expense increased $116,000, or 23.2%,
when comparing the two periods due to increases in both the average
cost and balance of interest-bearing liabilities. The average cost
of interest-bearing liabilities increased to 0.42% for the nine
months ended September 30, 2022 from 0.39% for the same period
in 2021. The average balance of interest-bearing liabilities
increased to $195.4 million for the nine months ended
September 30, 2022 from $169.9 million for the same
period in 2021, due primarily to an increase in savings and
interest-bearing demand deposit accounts and higher FHLB
borrowings, partially offset by a decrease in time deposits. As a
result of the changes in interest-earning assets and
interest-bearing liabilities, the net interest rate spread and net
interest rate spread on a tax-equivalent basis(1) was 2.82% and
2.99%, respectively, for the nine months ended September 30,
2022 from 2.81% and 2.99%, respectively, for the nine months ended
September 30, 2021. The net interest margin and net interest
margin on a tax-equivalent basis(1) increased to 2.93% and 3.10%,
respectively, for the nine months ended September 30, 2022
from 2.92% and 3.09%, respectively, for the nine-month period ended
September 30, 2021.
Noninterest income decreased $6,000, or 2.0%,
for the quarter ended September 30, 2022 as compared to the
same period in 2021, due primarily to a reduction in brokered loan
fees of $23,000, partially offset by increases of $13,000 and
$6,000 in deposit account service charges and ATM and debit card
fee income, respectively.
Noninterest income increased $44,000, or 4.9%,
for the nine months ended September 30, 2022 as compared to
the same period in 2021, due primarily to increases of $64,000 and
$20,000 in deposit account service charges and ATM and debit card
fee income, respectively, and a $36,000 gain on life insurance,
partially offset by a reduction in brokered loans fees of
$73,000.
Noninterest expense increased $116,000, or 7.5%,
for the quarter ended September 30, 2022 as compared to the
same period in 2021. The increase was due primarily to increases in
compensation and benefits of $34,000, occupancy and equipment
expenses of $22,000, data processing expenses of $15,000,
directors’ compensation of $14,000 and other expenses of
$18,000.
Noninterest expense increased $173,000, or 3.6%,
for the nine months ended September 30, 2022 as compared to
the same period in 2021. The increase was due primarily to
increases in occupancy and equipment expenses of $32,000, data
processing expenses of $31,000, professional fees of $24,000, a
loss on the disposal of premises and equipment of $17,000,
directors’ compensation expenses of $12,000 and other expenses of
$45,000, which is mostly attributable to increased advertising
expenses.
The Company recorded an income tax expense of
$31,000 for the quarter ended September 30, 2022, compared to
an income tax expense of $33,000 for the same period in 2021.
Income tax expense for the nine months ended September 30,
2022 was $89,000 compared to an expense of $56,000 for the same
period in 2021 resulting from an increase in our effective tax rate
to 5.6% for 2022 compared to 4.4% for 2021. The increase in the
effective tax rate is primarily due to an increase in pre-tax
income generated from core banking activities.
Balance Sheet Review
Total assets as of September 30, 2022 were
$264.5 million compared to $254.3 million at
December 31, 2021. The increase in total assets was primarily
due to increases in net loans of $19.9 million, other assets
of $5.1 million and Federal Home Loan Bank stock of
$1.0 million, partially offset by decreases in cash and cash
equivalents of $12.4 million and investment securities of
$3.6 million. The increase in net loans was due primarily to
increases of $11.2 million in commercial real estate loans,
$3.7 million in commercial business loans, $2.4 million
in commercial real estate construction loans and $2.0 million
in multi-family residential loans. The increase in other assets was
due primarily to a $5.1 million increase in net deferred tax
assets, largely attributable to the tax effect on the unrealized
loss on available for sale securities. Investment securities
decreased due primarily to a $20.0 million unrealized loss on
available for sale securities and $9.2 million in scheduled
principal payments, calls and maturities of mortgage-backed and
tax-exempt securities, partially offset by $26.0 million in
purchases of available for sale investment securities. Total
liabilities, comprised mostly of deposits, increased
$26.0 million to $233.7 million as of September 30,
2022. The increase was due primarily to a $21.0 million
increase in FHLB borrowings and a $6.0 million increase in
interest-bearing deposits, partially offset by a $1.0 million
decrease in noninterest-bearing deposits.
Credit Quality
Non-performing loans increased to $857,000 at
September 30, 2022 compared to $753,000 at December 31,
2021, or 0.6% of total loans for both periods. At
September 30, 2022, $576,000 or 67.2% of non-performing loans
were current on their loan payments. At September 30, 2022,
non-performing troubled debt restructured loans totaled $88,000.
There was no foreclosed real estate owned at either
September 30, 2022 or December 31, 2021.
Based on management’s analysis of the allowance
for loan losses, the Company recorded a provision for loan losses
of $85,000 for the quarter ended September 30, 2022 compared
to no provision for the same period in 2021. The Company recognized
net charge-offs of $3,000 for the quarter ended September 30,
2022 compared to net recoveries of $39,000 for the same period in
2021.
The Company recorded a provision for loan losses
of $135,000 for the nine-month period ended September 30, 2022
compared to no provision for the same periods in 2021. The Company
recognized net charge-offs of $5,000 for the nine months ended
September 30, 2022 compared to net recoveries of $62,000 for
the same period in 2021. The allowance for loan losses totaled
$1.7 million at September 30, 2022 and $1.5 million
at December 31, 2021, representing 1.1% and 1.2% of total
loans at September 30, 2022 and December 31, 2021,
respectively. The allowance for loan losses represented 192.9% of
non-performing loans at September 30, 2022, compared to 202.3%
at December 31, 2021.
Capital
The Bank elected to use the CBLR effective
January 1, 2020. Effective January 1, 2022, a bank or
savings institution electing to use the Community Bank Leverage
Ratio (“CBLR”) will generally be considered well-capitalized and to
have met the risk-based and leverage capital requirements of the
capital regulations if it has a leverage ratio greater than 9.0%,
an increase from the 8.5% or higher ratio requirement for fiscal
year 2021. To be eligible to elect to use the CBLR, the bank or
savings institution also must have total consolidated assets of
less than $10 billion, off-balance sheet exposures of 25.0% or
less of its total consolidated assets, and trading assets and
trading liabilities of 5.0% or less of its total consolidated
assets, all as of the end of the most recent quarter.
At September 30, 2022, the Bank was
considered well-capitalized under applicable federal regulatory
capital guidelines with a CBLR of 15.4%.
The Company’s stockholders’ equity decreased to
$30.8 million at September 30, 2022, from
$46.5 million at December 31, 2021. The decrease was due
primarily to a decrease in the accumulated other comprehensive
income related to the unrealized losses on available-for-sale
securities, net of tax, of $15.1 million and the repurchase of
154,486 shares of our common stock at a total cost of
$2.2 million, partially offset by net income of
$1.5 million, net of dividends of $330,000. At
September 30, 2022, a total of 173,097 shares remain
authorized for future purchases under the current stock repurchase
plan.
Non-GAAP Financial Measures
The Company’s accounting and reporting policies
conform to generally accepted accounting principles (“GAAP”) in the
United States and prevailing practices in the banking industry.
However, certain non-GAAP measures are used by management to
supplement the evaluation of the Company’s performance. Whenever a
non-GAAP financial measure is presented, the differences between
the non-GAAP financial measure and the most directly comparable
financial measure in accordance with GAAP are presented and
reconciled. The following non-GAAP financial measures presented are
defined below.
Net interest income (tax-equivalent basis),
yield on interest-earning assets (tax-equivalent basis), net
interest spread (tax-equivalent basis) and net interest margin
(tax-equivalent basis). These measures include the effects of
taxable-equivalent adjustments using a federal income tax rate
effective during the relevant year to increase tax-exempt interest
income to a tax-equivalent basis. Interest income earned on certain
assets is completely or partially exempt from federal income tax.
As such, these tax-exempt instruments typically yield lower returns
than taxable investments. Net interest income (tax-equivalent
basis) is a non-GAAP measure that adjusts for the tax-favored
status of net interest income from certain loans and investments
and is not permitted under GAAP in the consolidated statements of
income. We believe this measure to be the preferred industry
measurement of net interest income, and that it enhances
comparability of net interest income arising from taxable and
tax-exempt sources. The most directly comparable financial measure
calculated in accordance with GAAP is net interest income. Yield on
interest-earning assets (tax-equivalent basis) is the ratio of
interest income earned from interest-earning assets, adjusted on a
tax-equivalent basis, and average interest-earning assets. The
yield for investment securities is based on amortized cost and does
not give effect to changes in fair value that are reflected in
Accumulated Other Comprehensive Income / Loss (“AOCI”). The most
directly comparable financial measure in accordance with GAAP is
yield on interest-earning assets. Net interest spread
(tax-equivalent basis) is the difference in the average yield on
average earning assets on a tax-equivalent basis and the average
rate paid on average interest-bearing liabilities. The most
directly comparable financial measure calculated in accordance with
GAAP is net interest spread. Net interest margin (tax-equivalent
basis) is the ratio of net interest income (tax-equivalent basis)
to average earning assets. The most directly comparable financial
measure in accordance with GAAP is net interest margin.
Book value per share excluding Accumulated Other
Comprehensive Income / Loss. We calculate book value per share
excluding AOCI as total stockholders’ equity at the end of the
relevant period, less AOCI, divided by the outstanding number of
our common shares at the end of each period. The most directly
comparable GAAP financial measure is book value per share. We
provide the book value per share excluding AOCI in addition to
those defined by banking regulators because we believe it is
important to evaluate the balance sheet both before and after the
effects of unrealized amounts associated with mark-to-market
adjustments on available-for-sale investment securities.
Tangible book value per share. Tangible book
value per share is a non-GAAP financial measure. We calculate
tangible book value per share as total stockholders’ equity at the
end of the relevant period, less goodwill and other intangible
assets, divided by the outstanding number of our common shares at
the end of each period. The most directly comparable GAAP financial
measure is book value per share. We had no goodwill or other
intangible assets as of any of the dates indicated. As a result,
tangible book value per share is the same as book value per share
as of each of the dates indicated. We provide the tangible book
value per share in addition to those defined by banking regulators
because of its widespread use by investors as a means to evaluate
capital adequacy.
These non-GAAP financial measures should not be
considered alternatives to GAAP-basis financial statements, and
other bank holding companies may define these non-GAAP measures or
similar measures differently.
Refer to “Reconciliation of Non-GAAP Financial
Measures” below.
Investment Return
In August 2022, management sent a shareholder
letter which included select growth metrics from our July 11, 2018
Community Stock Offering through June 30, 2022. The letter noted
that the market value per share of common stock had increased
approximately 36.1% during this period, based on the increase from
the $10 per share Community Stock Offering through June 30, 2022.
Of course, actual investment returns for each shareholder of the
Company depend on the shareholder’s specific date of purchase and
price paid. Management also noted the market value per share
performance as compared to various indices, including the S&P
500, the NASDAQ Bank Index, and a regional peer group which
management uses in managing the Bank’s operations. The members of
the regional peer group include: CF Bankshares Inc. (CFBK), Civista
Bancshares, Inc. (CIVB), Farmers & Merchants Bancorp, Inc.
(FMAO), Farmers National Banc Corp. (FMNB), Finward Bancorp (FNWD),
First Capital, Inc. (FCAP), First Savings Financial Group, Inc.
(FSFG), LCNB Corp. (LCNB), Limestone Bancorp, Inc. (LMST),
Middlefield Banc Corp. (MBCN), Ohio Valley Banc Corp. (OVBC),
Richmond Mutual Bancorporation, Inc. (RMBI), SB Financial Group,
Inc. (SBFG) and United Bancshares, Inc. (UBOH). Of course, a
regional peer group comprised of other financial institutions would
yield different comparisons.
About Mid-Southern Bancorp, Inc.
Mid-Southern Savings Bank, FSB is a federally
chartered savings bank headquartered in Salem, Indiana,
approximately 40 miles northwest of Louisville, Kentucky. The
Bank conducts business from its main office in Salem and through
its branch offices located in Mitchell and Orleans, Indiana and
loan production offices located in New Albany, Indiana and
Louisville, Kentucky.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains certain
forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Such forward-looking statements
may be identified by reference to a future period or periods, or by
the use of forward-looking terminology, such as “estimate,”
“project,” “believe,” “intend,” “anticipate,” “plan,” “seek,”
“expect,” “will,” “may,” “continue,” or similar terms or variations
on those terms, or the negative of those terms. Forward-looking
statements, by their nature, are subject to risks and
uncertainties. Certain factors that could cause actual results to
differ materially from expected results include the effect of the
COVID-19 pandemic, including on the Company’s credit quality and
business operations, as well as its impact on general economic and
financial market conditions and other uncertainties resulting from
the COVID-19 pandemic, such as the extent and duration of the
impact on public health, the U.S. and global economies, and
consumer and corporate customers, including economic activity,
employment levels and market liquidity; increased competitive
pressures; changes in the interest rate environment; general
economic conditions or conditions within the securities markets;
and legislative and regulatory changes affecting financial
institutions, including regulatory compliance costs and capital
requirements that could adversely affect the business in which the
Company and the Bank are engaged; and other factors described in
the Company’s latest Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q and other filings with the Securities and
Exchange Commission that are available on our website at
mid-southern.com and on the SEC’s website at www.sec.gov.
The factors listed above could materially affect
the Company’s financial performance and could cause the Company’s
actual results for future periods to differ materially from any
opinions or statements expressed with respect to future periods in
any current statements.
Except as required by applicable law, the
Company does not undertake and specifically declines any obligation
to publicly release the result of any revisions which may be made
to any forward-looking statements to reflect events or
circumstances after the date of such statements or to reflect the
occurrence of anticipated or unanticipated events. When considering
forward-looking statements, you should keep in mind these risks and
uncertainties. You should not place undue reliance on any
forward-looking statement, which speaks only as of the date
made.
(1) Refer to “Non-GAAP Financial Measures” below
and to “Reconciliation of Non-GAAP Financial Measures” at the end
of this Earnings Release for more information and for a
reconciliation of this non-GAAP financial measure to the nearest
GAAP financial measure.
Contact:Alexander G.
Babey, President and Chief Executive OfficerRobert
W. DeRossett, Chief Financial OfficerMid-Southern
Bancorp, Inc.812-883-2639
MID-SOUTHERN BANCORP,
INC.CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)(Dollars in thousands, except per share information)
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
OPERATING
DATA |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income |
|
$ |
2,294 |
|
$ |
1,903 |
|
$ |
6,330 |
|
$ |
5,643 |
Total interest expense |
|
|
294 |
|
|
164 |
|
|
617 |
|
|
501 |
Net interest income |
|
|
2,000 |
|
|
1,739 |
|
|
5,713 |
|
|
5,142 |
Provision for loan losses |
|
|
85 |
|
|
— |
|
|
135 |
|
|
— |
Net interest income after provision for loan losses |
|
|
1,915 |
|
|
1,739 |
|
|
5,578 |
|
|
5,142 |
Total non-interest income |
|
|
295 |
|
|
301 |
|
|
944 |
|
|
900 |
Total non-interest expense |
|
|
1,667 |
|
|
1,551 |
|
|
4,928 |
|
|
4,755 |
Income before income taxes |
|
|
543 |
|
|
489 |
|
|
1,594 |
|
|
1,287 |
Income tax expense |
|
|
31 |
|
|
33 |
|
|
89 |
|
|
56 |
Net income |
|
$ |
512 |
|
$ |
456 |
|
$ |
1,505 |
|
$ |
1,231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share attributable to common shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.19 |
|
$ |
0.16 |
|
$ |
0.55 |
|
$ |
0.42 |
Diluted |
|
$ |
0.19 |
|
$ |
0.16 |
|
$ |
0.55 |
|
$ |
0.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
2,679,500 |
|
|
2,875,547 |
|
|
2,737,396 |
|
|
2,935,796 |
Diluted |
|
|
2,685,209 |
|
|
2,888,174 |
|
|
2,741,212 |
|
|
2,945,347 |
|
|
|
|
|
|
|
September 30, |
|
December 31, |
BALANCE SHEET
INFORMATION |
2022 |
|
2021 |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
4,010 |
|
$ |
16,379 |
Investment securities |
|
103,702 |
|
|
107,314 |
Loans, net |
|
142,473 |
|
|
122,568 |
Interest-earning assets |
|
251,926 |
|
|
247,184 |
Total assets |
|
264,548 |
|
|
254,260 |
Deposits |
|
201,815 |
|
|
196,884 |
Borrowings |
|
31,000 |
|
|
10,000 |
Stockholders' equity |
|
30,810 |
|
|
46,529 |
|
|
|
|
|
|
Common stock shares outstanding |
|
2,869,586 |
|
|
3,016,653 |
|
|
|
|
|
|
Book value per share (1) |
|
10.74 |
|
|
15.42 |
Book value per share excluding AOCI (2) |
|
15.25 |
|
|
14.73 |
Tangible book value per share (3) |
|
10.74 |
|
|
15.42 |
Non-performing assets: |
|
|
|
|
|
Nonaccrual loans |
|
857 |
|
|
753 |
Accruing loans past due 90 days or more |
|
— |
|
|
— |
Foreclosed real estate |
|
— |
|
|
— |
Troubled debt restructurings on accrual status |
|
729 |
|
|
786 |
OTHER FINANCIAL DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
September 30, |
|
September 30, |
|
Performance
ratios: |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends per share |
|
$ |
0.04 |
|
$ |
0.03 |
|
$ |
0.12 |
|
$ |
0.09 |
|
Return on average assets (annualized) |
|
|
0.77 |
% |
|
0.73 |
% |
|
0.76 |
% |
|
0.67 |
% |
Return on average stockholders' equity (annualized) |
|
|
5.87 |
% |
|
3.81 |
% |
|
5.13 |
% |
|
3.39 |
% |
Net interest margin (tax-equivalent basis) (4) |
|
|
3.16 |
% |
|
3.09 |
% |
|
3.10 |
% |
|
3.09 |
% |
Interest rate spread (tax-equivalent basis) (4) |
|
|
3.02 |
% |
|
2.99 |
% |
|
2.99 |
% |
|
2.99 |
% |
Efficiency ratio |
|
|
72.6 |
% |
|
76.0 |
% |
|
74.0 |
% |
|
78.7 |
% |
Average interest-earning assets to average interest-bearing
liabilities |
|
|
131.1 |
% |
|
136.7 |
% |
|
133.3 |
% |
|
138.3 |
% |
Average stockholders' equity to average assets |
|
|
13.0 |
% |
|
19.2 |
% |
|
14.8 |
% |
|
19.7 |
% |
Stockholders' equity to total assets at end of period |
|
|
|
|
|
|
|
|
11.6 |
% |
|
18.3 |
% |
|
September 30, |
|
December 31, |
|
Capital
ratios: (5) |
2022 |
|
2021 |
|
|
|
|
|
|
Community Bank Leverage Ratio |
15.4 |
% |
16.3 |
% |
|
|
|
|
|
|
September 30, |
|
December 31, |
|
Asset quality
ratios: |
2022 |
|
2021 |
|
|
|
|
|
|
Allowance for loan losses as a percent of total loans |
1.1 |
% |
1.2 |
% |
Allowance for loan losses as percent of non-performing loans |
192.9 |
% |
202.3 |
% |
Net charge-offs (recoveries) to average outstanding loans during
the period (annualized) |
0.0 |
% |
0.0 |
% |
Non-performing loans as a percent of total loans |
0.6 |
% |
0.6 |
% |
Non-performing assets as a percent of total assets |
0.3 |
% |
0.3 |
% |
(1) - We calculate book value per share as total
stockholders’ equity at the end of the relevant period divided by
the outstanding number of our common shares at the end of each
period.
(2) - Book value per share excluding Accumulated
Other Comprehensive Income / Loss (“AOCI”) is a non-GAAP financial
measure. We calculate book value per share excluding AOCI as total
stockholders’ equity at the end of the relevant period, less AOCI,
divided by the outstanding number of our common shares at the end
of each period. The most directly comparable GAAP financial measure
is book value per share. We provide the book value per share
excluding AOCI in addition to those defined by banking regulators
because we believe it is important to evaluate the balance sheet
both before and after the effects of unrealized amounts associated
with mark-to-market adjustments on available-for-sale investment
securities. Refer to “Reconciliation of Non-GAAP Financial
Measures” below.
(3) - Tangible book value per share is a
non-GAAP financial measure. We calculate tangible book value per
share as total stockholders’ equity at the end of the relevant
period, less goodwill and other intangible assets, divided by the
outstanding number of our common shares at the end of each period.
The most directly comparable GAAP financial measure is book value
per share. We had no goodwill or other intangible assets as of any
of the dates indicated. As a result, tangible book value per share
is the same as book value per share as of each of the dates
indicated. We provide the tangible book value per share in addition
to those defined by banking regulators because of its widespread
use by investors as a means to evaluate capital adequacy.
(4) - Net interest margin on a tax-equivalent
basis and interest rate spread on a tax-equivalent basis are
non-GAAP financial measures. We calculate these measures on a
tax-equivalent basis to adjust for the tax-favored status of
interest income from loans and investments and believe these
measures are the preferred industry measurement and enhances
comparability of interest income arising from taxable and
tax-exempt sources. Net interest margin on a tax-equivalent basis
is net interest income on a tax-equivalent basis divided by average
interest-earning assets. The most directly comparable financial
measure calculated in accordance with GAAP is net interest margin.
Net interest spread on a tax-equivalent basis is the difference in
the yield on average interest-earning assets on a tax-equivalent
basis and the average rate paid on average interest-bearing
liabilities. The yield for investment securities is based on
amortized cost and does not give effect to changes in fair value
that are reflected in AOCI. The most directly comparable financial
measure calculated in accordance with GAAP is net interest spread.
The most directly comparable financial measures calculated in
accordance with GAAP is net interest margin and interest rate
spread. Refer to “Reconciliation of Non-GAAP Financial Measures”
below.
(5) - Effective January 1, 2020, the Bank
elected to use the CBLR, as provided by the Economic Growth,
Regulatory Relief, and Consumer Protection Act (the “Act”). The Act
contains a number of provisions extending regulatory relief to
banks and savings institutions and their holding companies. A bank
or savings institution that elects to use the CBLR will generally
be considered well-capitalized and to have met the risk-based and
leverage capital requirements of the capital regulations if it has
a leverage ratio greater than 9.0% (adjusted to 8.5% effective
January 1, 2021, returning to 9.0% effective January 1,
2022).
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
|
|
|
|
|
|
|
September 30, |
|
December 31, |
Book value per share
excluding AOCI: |
2022 |
|
2021 |
|
|
|
|
|
|
Stockholders' equity |
$ |
30,810 |
|
|
$ |
46,529 |
Adjustments: |
|
|
|
|
|
Accumulated other comprehensive income (loss) |
|
(12,957 |
) |
|
|
2,096 |
Stockholders' equity excluding AOCI |
$ |
43,767 |
|
|
$ |
44,433 |
|
|
|
|
|
|
Common stock shares outstanding |
|
2,869,586 |
|
|
|
3,016,653 |
|
|
|
|
|
|
Book value per share |
$ |
10.74 |
|
|
$ |
15.42 |
Less: effect of accumulated other comprehensive income (loss) |
|
(4.51 |
) |
|
|
0.69 |
Book value per share excluding AOCI |
$ |
15.25 |
|
|
$ |
14.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
September 30, |
|
September 30, |
|
Net interest income,
yield on interest-earning assets, net interest spread, net interest
margin (tax-equivalent basis): |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (GAAP) |
|
$ |
2,000 |
|
$ |
1,739 |
|
$ |
5,713 |
|
$ |
5,142 |
|
Tax-equivalent adjustments: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
— |
|
|
4 |
|
|
4 |
|
|
6 |
|
Tax-exempt investment securities |
|
|
114 |
|
|
101 |
|
|
328 |
|
|
300 |
|
Net interest income (tax-equivalent basis) |
|
$ |
2,114 |
|
$ |
1,844 |
|
$ |
6,045 |
|
$ |
5,448 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average interest-earning assets (2) |
|
$ |
267,946 |
|
$ |
238,659 |
|
$ |
260,380 |
|
$ |
234,997 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield on interest-earning assets (2) |
|
|
3.42 |
% |
|
3.19 |
% |
|
3.24 |
% |
|
3.20 |
% |
Yield on interest-earning assets (tax-equivalent basis) (2) |
|
|
3.59 |
% |
|
3.37 |
% |
|
3.41 |
% |
|
3.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread (2) |
|
|
2.85 |
% |
|
2.81 |
% |
|
2.82 |
% |
|
2.81 |
% |
Net interest spread (tax-equivalent basis) (2) |
|
|
3.02 |
% |
|
2.99 |
% |
|
2.99 |
% |
|
2.99 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (2) |
|
|
2.99 |
% |
|
2.92 |
% |
|
2.93 |
% |
|
2.92 |
% |
Net interest margin (tax-equivalent basis) (2) |
|
|
3.16 |
% |
|
3.09 |
% |
|
3.10 |
% |
|
3.09 |
% |
(1) - Tax-exempt income has been adjusted to a
tax-equivalent basis using the federal marginal tax rate of 21% for
2022 and 2021.
(2) - Investment securities are based on
amortized cost and does not give effect to changes in fair value
that are reflected in AOCI.
Grafico Azioni Mid Southern Bancorp (NASDAQ:MSVB)
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Grafico Azioni Mid Southern Bancorp (NASDAQ:MSVB)
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Da Ott 2023 a Ott 2024