Select Bancorp, Inc. (NASDAQ: SLCT) (the “Company”), the holding
company for Select Bank & Trust Company (the “Bank”), today
reported net income for the year ended December 31, 2019 of $13.0
million, or $0.69 and $0.68 per basic and diluted share,
respectively. This was a decrease of 5.4% in net income compared to
the year ended December 31, 2018. Net income per share
declined approximately 20.7% for basic and 21.8% for diluted share
from the $0.87 per basic and diluted share reported for the year
ended December 31, 2018. The additional decline in per share
results is primarily attributable to the increase in weighted
average shares outstanding during 2019 as compared to 2018, as the
Company issued 5,270,834 shares of common stock in the third
quarter of 2018 in a public offering. The increase in weighted
shares outstanding was partially offset by common stock share
repurchases completed during 2019.
For the three-month period ended December 31,
2019, the Company reported net income of $3.0 million, or $0.17 and
$0.16 per basic and diluted share, respectively, a decrease of 6.1%
in net income compared to the three months ended September 30,
2019. The per share results were relatively flat on a
linked-quarter basis due to a reduction in weighted average shares
outstanding in the 2019 fourth quarter as compared to the 2019
third quarter, as the Company made additional share repurchases
during the last six months of 2019.
The decrease in net income in 2019 compared to
2018 was impacted by expenses associated with new branches in Holly
Springs, North Carolina (the Raleigh area) and Virginia Beach,
Virginia plus the sale of our Six Mile, South Carolina branch and
the closing of the Washington, North Carolina branch.
Expenses were also incurred with newly opened loan production
offices located in Winston-Salem and Durham, North Carolina in
preparation for the anticipated February 2020 opening of a branch
in Cornelius, North Carolina (Charlotte area).
Net Interest Income and Net Interest Margin
Net interest income was $11.9 million for the
fourth quarter of 2019 and 2018. On a comparative quarter basis,
the Company’s total interest income was positively affected by
increased loan balances due to growth and increasing yield which
was offset by an increase in securities at a lower yield and a
reduction in other earning assets at a lower yield. Average total
interest-earning assets were $1.2 billion in the fourth quarter of
2019 and 2018. The yield on those assets increased 13 basis
points, from 4.92% in the fourth quarter of 2018 to 5.05% for the
same period in 2019. This was primarily due to higher rates
on recently originated loans which was offset with a reduction of
accretion from acquired loans on a comparative quarter basis.
The Company’s average interest-bearing
liabilities decreased by $17.2 million, to $801.4 million for the
quarter ended December 31, 2019, from $818.6 million for the third
quarter in 2019 to take advantage of the reduced rate environment,
with the cost of those funds decreasing from 1.52% to 1.46%, or 6
basis points. During the fourth quarter of 2019, the Company’s net
interest margin was 4.05% and net interest spread was 3.59%. In the
third quarter of 2019, net interest margin was 3.94% and net
interest spread was 3.46%.
Net interest income was $46.9 million for the
year ended December 31, 2019, a decrease of $495,000 from the $47.4
million in net interest income reported for the year ended December
31, 2018. While the Company’s total interest income increased by
approximately $1.6 million in 2019 versus 2018, this increase was
more than offset by an increase in interest in the cost of funds of
approximately $2.1 million. The Company’s increase in total
interest income was fueled by an increase in loans and purchases of
securities with higher yields. Average total interest-earning
assets were $1.2 billion for 2019 compared with $1.1 billion for
2018, while the yield on those assets increased 1 basis point from
5.02% to 5.03%, which was primarily due to the increase in rates on
purchased investment securities and other earning assets.
The Company’s average interest-bearing
liabilities decreased by $28.4 million, to $795.2 million for the
year ended December 31, 2019, from $823.6 million for the year
ended December 31, 2018, with the cost of those funds increasing
from 1.15% to 1.45%, or 30 basis points. For the year ended
December 31, 2019, the Company’s net interest margin was 4.04% and
net interest spread was 3.58%. For the year ended December
31, 2018, net interest margin was 4.19% and net interest spread was
3.88%. The increase in the interest rates on deposits was the
primary driver of a lower net interest margin in 2019.
Provision for Loan Losses and Asset Quality
During the fourth quarter of 2019, the Company
recorded a provision for loan losses of $302,000, based primarily
on loan growth and adjustments to qualitative loan factors related
to trends in the loan portfolio. On a comparative quarter basis,
the Company had a $395,000 reverse provision for the fourth quarter
of 2018. In the third quarter of 2019, the Company recorded a
provision of loan losses of $231,000, based primarily on net
charge-offs of $478,000 and improved qualitative loan factors
during the quarter. In the fourth quarter of 2019, the
Company incurred net charge-offs of $33,000, a net charge-off rate
of 0.01% of average loans, compared to a net charge-off rate of
0.19% in the third quarter of 2019.
For the year ended December 31, 2019, the
Company recorded a provision for loan losses of $438,000, compared
to a recovery of $156,000 for 2018. This increase for 2019 was
based primarily on loan growth and net charge-offs incurred that
were partially offset by the reduction of qualitative loan
factors. In 2018, the reverse provision was driven primarily
by a reduction in the concentration ratios in commercial real
estate and construction loans exceeding regulatory concentration
guidelines. This reduction was a result of the Company’s equity
investment of $25.0 million in the Bank from the proceeds of the
August 2018 common stock offering. The net charge-off ratio for the
year ended December 31, 2019 was 0.08%, compared to 0.0% for the
year ended December 31, 2018.
Non-interest Income
Non-interest income for the quarter ended
December 31, 2019 was $1.4 million, a decrease of $2,000 from $1.4
million in the third quarter of 2019. Service charges on deposit
accounts decreased $5,000, to $303,000 for the quarter ended
December 31, 2019, from $308,000 for the third quarter in 2019.
Other non-deposit fees and income increased $121,000 from the third
quarter of 2019 to the fourth quarter of 2019. Fees from presold
mortgages decreased by $70,000 in the fourth quarter of 2019 to
$148,000, from $218,000 in the third quarter of 2019. The Company
sold two investment securities in the third quarter of 2019 for a
gain of $48,000. The Company did not sell any investment securities
in the fourth quarter of 2019.
Non-interest income for the year ended December
31, 2019 was $5.4 million, an increase of $718,000, or 15.3%, from
the year ended December 31, 2018. Service charges on deposit
accounts increased $37,000, to $1.2 million, for the year ended
December 31, 2019 from $1.1 million for the year ended December 31,
2018. Other non-deposit fees and income increased $377,000 from the
year ended December 31, 2018 to the year ended December 31, 2019.
Fees from presold mortgages increased non-interest income by
$256,000 in 2019 to $753,000 from $497,000 for 2018. The Company
sold two investment securities for a gain of $48,000 in 2019. The
Company did not sell any investment securities during 2018.
Non-interest Expenses
Non-interest expenses increased by $1.2 million,
or 15.6%, to $9.1 million for the quarter ended December 31, 2019,
from $7.9 million for the same period in 2018. The following are
highlights of the significant categories of non-interest expenses
during the fourth quarter of 2019 compared to the same period in
2018:
- Personnel expenses increased $709,000, to $5.2 million, due to
increased staff for new branches, employment taxes and benefits
costs.
- Foreclosed real estate-related expense increased $75,000,
primarily due to maintenance expenses and property taxes.
- There was an increase of $375,000 in information system
expenses in the fourth quarter of 2019, primarily due to additional
software and cyber security costs.
- Professional fees increased by $121,000, to $503,000, primarily
due to expenses associated with branch purchases and
divestitures.
- Deposit insurance expense increased by $8,000, primarily due to
growth, which was offset by a credit from the FDIC as a result of
regulatory changes in the premium calculation.
- Occupancy and equipment expense decreased by $95,000, to
$973,000, due to a reduction in repairs and maintenance, as offset
by branch additions and divestitures.
- Merger-related expenses increased by $171,000 due to branch
purchases and divestitures.
- Other non-interest expenses decreased by $95,000,
primarily due to decreases in various administrative related
non-interest expenses.
Non-interest expenses increased by $590,000, or
1.7%, to $35.1 million for the twelve months ended December 31,
2019, from $34.6 million for the same period in 2018. The following
are highlights of the significant categories of non-interest
expenses during the twelve months ended December 31, 2019 versus
2018:
- Personnel expenses increased $2.0 million, to $20.3 million,
due to net additions in branch staff, employment taxes and benefit
costs.
- Occupancy and equipment expenses increased by $29,000 due to
branch acquisition and start-up which was offset by a reduction of
repairs and maintenance expenses.
- Core deposit intangible amortization expense decreased by
$191,000 in 2019 due to normal amortization.
- Deposit insurance expense decreased $444,000 due to receiving a
credit from the FDIC as a result of regulatory changes in the
premium calculation.
- Information systems expense increased $120,000 due primarily to
additional software and security costs.
- Merger/integration-related expenses decreased by $1.4 million
compared to the non-recurring 2018 merger cost associated with
the acquisition of Premara Financial, Inc. and its subsidiary,
Carolina Premier Bank.
- Foreclosed real estate expenses increased $25,000 due to
increased property taxes and write downs in 2019.
Income Taxes
The Company’s effective tax rate was 22.4% and
21.5% for the quarters ended December 31, 2019 and 2018,
respectively. The Company’s effective tax rate was 22.1% for
the years ended December 31, 2019 and 2018, respectively.
Balance Sheet and Capital
Total assets at December 31, 2019 were $1.3
billion, a 1.3% increase from a year earlier. Gross loans at
December 31, 2019 were $1.0 billion, up $43.9 million or 4.5% from
a year earlier; total deposits were $1.0 billion, an increase of
$12.4 million or 1.3% from a year earlier.
Retail deposit growth (excludes brokered
deposits and internet time deposits) grew at a rate of 2.60% for
2019. Wholesale deposits decreased from $56.5 million at December
31, 2018 to $45.0 million at December 31, 2019 as we emphasized
core deposit growth to replace wholesale deposits.
Agreement to Acquire Three Branches in Western
North Carolina
On December 23, 2019, the Bank announced it had
entered into an agreement to acquire three Entegra Bank branches in
western North Carolina. Entegra Bank was acquired by First-Citizens
Bank & Trust Company effective December 31, 2019. The branches
are being divested as required under agreements with the U.S.
Department of Justice, Antitrust Division, and the Federal Reserve
in connection with Entegra’s acquisition by First Citizens.
The branches are located at 473 Carolina Way,
Highlands, NC; 498 East Main Street, Sylva, NC; and 30 Hyatt Road,
Franklin, NC. As part of the agreement, the Bank will assume
approximately $180 million in deposits and will purchase
approximately $110 million in loans. The transaction is expected to
close in April 2020, subject to regulatory approval.
Comments of the Chief Executive Officer and
Other Matters
William L Hedgepeth, II, President and CEO of
Select Bancorp, commented, “Our fourth quarter results built upon
the growth we experienced earlier in the year as we expanded into
the Raleigh market with our Holly Springs branch and we opened in
Virginia Beach with an acquired branch. Our second Charlotte
office is on the drawing board with an expected opening date in
February. We are building our capabilities with targeted
hiring to support LPOs opened in the Durham and Winston-Salem
markets. As part of our continuing review of the Bank’s
performance, we sold one branch and consolidated another in the
fourth quarter. We also entered into an agreement to acquire three
branches in western North Carolina, and are excited to expand our
footprint into these new markets.”
“Our core profitability improved as a result of
proactively addressing the pricing of our loans and deposits. We
were able to reduce the cost of interest-bearing deposits from
1.40% in the third quarter of 2019 to 1.33% in the fourth
quarter. In this same time period, our yield on loans
increased from 5.50% in the third quarter of 2019 to 5.51% in the
fourth quarter of 2019. As a result, our net interest margin
increased from 3.94% in the third quarter of 2019 to 4.05% in the
fourth quarter of 2019. We are extremely proud of those
performance improvements in this challenging rate environment.”
“We review opportunities for acquisitions and
analyze each with a discipline designed to properly deploy the
capital entrusted to us. Our share repurchase program remains
active, and we are able to return capital to shareholders by buying
our shares when market conditions warrant. We intend to
retain adequate capital for any acquisitions which meet our
criteria.”
Other matters of interest to shareholders
are:
- The Company purchased 581,518 shares of Company common stock
during 2019, completing the repurchase plan authorized by the Board
of Directors in 2016.
- The Board of Directors approved a new stock repurchase plan for
937,248 shares in September 2019.
- The Company purchased an additional 426,742 shares of the
Company’s common stock under the new repurchase plan during
2019.
- Loan growth was over $15 million in the fourth quarter of
2019.
About Select Bank & Trust
Company
Select Bank & Trust has 18 full-service
offices in these North Carolina communities: Dunn, Burlington,
Charlotte, Clinton, Elizabeth City, Fayetteville, Goldsboro,
Greenville, Holly Springs (Raleigh area), Leland, Lillington,
Lumberton, Morehead City, Raleigh, and Wilmington, North Carolina;
in the following South Carolina communities: Blacksburg and Rock
Hill; and in Virginia Beach, Virginia.
About Select Bancorp, Inc.
Select Bancorp, Inc. is a bank holding company
headquartered in Dunn, North Carolina. The Company primarily
conducts operations through its wholly owned subsidiary, Select
Bank & Trust Company, a North Carolina-chartered commercial
bank that provides a full suite of banking services through its
offices in North Carolina, South Carolina, and Virginia. The
Company’s common stock is listed on the Nasdaq Global Market under
the symbol “SLCT”.
Non-GAAP Financial Measures
Certain financial measures we use to evaluate
our performance and discuss in this release and the accompanying
tables are identified as being “non-GAAP financial measures.” In
accordance with the rules of the Securities and Exchange
Commission, or the SEC, we classify a financial measure as being a
non-GAAP (generally accepted accounting principles) financial
measure if that financial measure excludes or includes amounts, or
is subject to adjustments that have the effect of excluding or
including amounts, that are included or excluded, as the case may
be, in the most directly comparable measure calculated and
presented in accordance with GAAP as in effect from time to time in
the United States in our statements of operations, balance sheet or
statements of cash flows. Non-GAAP financial measures do not
include operating and other statistical measures or ratios or
statistical measures calculated using exclusively either financial
measures calculated in accordance with GAAP, operating measures or
other measures that are not non-GAAP financial measures or
both.
The non-GAAP financial measures that we discuss
in this release should not be considered in isolation or as a
substitute for the most directly comparable or other financial
measures calculated in accordance with GAAP. Moreover, the manner
in which we calculate the non-GAAP financial measures that we
discuss in this release may differ from that of other companies
reporting measures with similar names. You should understand how
such other banking organizations calculate their financial measures
similar, or with names similar, to the non-GAAP financial measures
we have discussed in this release when comparing such non-GAAP
financial measures.
Tangible book value per share is a non-GAAP
measure generally used by financial analysts and investment bankers
to evaluate financial institutions. We calculate: (a) tangible
common equity as shareholders’ equity less goodwill and core
deposit intangibles; and (b) tangible book value per share as
tangible common equity (as described in clause (a)) divided by
shares of common stock outstanding. For tangible book value per
share, the most directly comparable financial measure calculated in
accordance with GAAP is our book value per share. A reconciliation
of tangible book value per share to book value per share is
included in the tables that accompany this release.
We believe that this measure is important to
many investors in the marketplace who are interested in changes
from period to period in book value per share exclusive of changes
in intangible assets. Goodwill and other intangible assets have the
effect of increasing total book value while not increasing our
tangible book value.
Important Note Regarding Forward-Looking
Statements
This news release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, including, without limitation, (i) statements
regarding certain of our goals and expectations with respect to
earnings, revenue, and expenses and the growth rate in such items,
as well as other measures of economic performance, including
statements relating to anticipated market share growth, and (ii)
statements preceded by, followed by or that include the words
“may,” “could,” “should,” “would,” “believe,” “anticipate,”
“estimate,” “expect,” “intend,” “plan,” “projects,” “outlook” or
similar expressions. The actual results might differ materially
from those projected in the forward-looking statements for various
reasons, including, but not limited to: our ability to manage
growth or achieve it at all; substantial changes in financial
markets; our ability to obtain the synergies and expense
efficiencies anticipated from our acquisition activity and branch
divestitures and consolidations; regulatory changes; changes in
interest rates; loss of deposits and loan demand to other savings
and financial institutions; adverse economic conditions that impact
our borrowers’ ability to pay their debts when due; and changes in
real estate values and the real estate market. Additional
information concerning factors that could cause actual results to
materially differ from those in the forward-looking statements is
contained in the Company’s SEC filings, including its periodic
reports under the Securities Exchange Act of 1934, as amended,
copies of which are available upon request from the Company. Except
as required by law, the Company assumes no obligation to update the
forward-looking statements publicly or to update the reasons actual
results could differ materially from those anticipated in the
forward-looking statements, even if new information becomes
available in the future.
|
SELECT
BANCORP, INC. |
CONSOLIDATED
BALANCE SHEETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2019 |
|
September
30, 2019 |
|
June 30,
2019 |
|
March 31, 2019 |
|
|
December 31, 2018 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
|
|
|
|
(Dollars in
thousands) |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
19,110 |
|
|
20,052 |
|
|
20,397 |
|
|
15,586 |
|
|
17,059 |
|
Interest-earning deposits in other banks |
50,920 |
|
|
53,093 |
|
|
100,584 |
|
|
44,894 |
|
|
121,303 |
|
Certificates
of deposit |
|
- |
|
|
500 |
|
|
500 |
|
|
1,000 |
|
|
1,000 |
|
Federal
funds sold |
|
9,047 |
|
|
10,728 |
|
|
21,961 |
|
|
9,809 |
|
|
- |
|
Investment
securities available for sale, at Fair Value |
|
72,367 |
|
|
76,941 |
|
|
83,102 |
|
|
86,727 |
|
|
51,533 |
|
Loans held
for sale |
|
928 |
|
|
1,714 |
|
|
826 |
|
|
354 |
|
|
580 |
|
Loans |
|
1,029,975 |
|
|
1,014,928 |
|
|
997,062 |
|
|
991,801 |
|
|
986,040 |
|
Allowance
for loan losses |
|
(8,324 |
) |
|
(8,056 |
) |
|
(8,303 |
) |
|
(8,510 |
) |
|
(8,669 |
) |
NET
LOANS |
|
1,021,651 |
|
|
1,006,872 |
|
|
988,759 |
|
|
983,291 |
|
|
977,371 |
|
|
|
|
|
|
|
|
|
|
|
|
Accrued
interest receivable |
|
4,189 |
|
|
3,902 |
|
|
4,028 |
|
|
4,120 |
|
|
3,889 |
|
Stock in
Federal Home Loan Bank of Atlanta, at cost |
|
3,045 |
|
|
3,045 |
|
|
3,045 |
|
|
3,342 |
|
|
3,283 |
|
Other
non-marketable securities |
|
719 |
|
|
719 |
|
|
718 |
|
|
738 |
|
|
762 |
|
Foreclosed
real estate |
|
3,533 |
|
|
1,442 |
|
|
1,468 |
|
|
1,046 |
|
|
1,088 |
|
Premises and
equipment, net |
|
17,791 |
|
|
18,150 |
|
|
18,274 |
|
|
17,715 |
|
|
17,920 |
|
Right of use
lease asset |
|
8,596 |
|
|
8,776 |
|
|
8,953 |
|
|
8,750 |
|
|
- |
|
Bank owned
life insurance |
|
29,789 |
|
|
29,621 |
|
|
29,451 |
|
|
29,282 |
|
|
29,117 |
|
Goodwill |
|
24,579 |
|
|
24,579 |
|
|
24,579 |
|
|
24,579 |
|
|
24,579 |
|
Core deposit
intangible ("CDI") |
|
1,610 |
|
|
1,803 |
|
|
2,011 |
|
|
1,866 |
|
|
2,085 |
|
Assets held
for sale |
|
- |
|
|
- |
|
|
- |
|
|
668 |
|
|
668 |
|
Other
assets |
|
7,202 |
|
|
7,697 |
|
|
8,141 |
|
|
8,310 |
|
|
6,288 |
|
TOTAL ASSETS |
|
1,275,076 |
|
|
1,269,634 |
|
|
1,316,797 |
|
|
1,242,077 |
|
|
1,258,525 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Demand |
|
240,305 |
|
|
243,889 |
|
|
252,666 |
|
|
240,262 |
|
|
247,007 |
|
Savings |
|
43,128 |
|
|
43,355 |
|
|
46,037 |
|
|
48,080 |
|
|
51,811 |
|
Money market and NOW |
|
280,145 |
|
|
283,414 |
|
|
292,629 |
|
|
262,169 |
|
|
254,482 |
|
Time |
|
429,260 |
|
|
417,015 |
|
|
438,918 |
|
|
400,455 |
|
|
427,127 |
|
TOTAL DEPOSITS |
|
992,838 |
|
|
987,673 |
|
|
1,030,250 |
|
|
950,966 |
|
|
980,427 |
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term
Debt |
|
- |
|
|
- |
|
|
- |
|
|
7,000 |
|
|
7,000 |
|
Long-Term
Debt |
|
57,372 |
|
|
57,372 |
|
|
57,372 |
|
|
57,372 |
|
|
57,372 |
|
Lease
Liability |
|
8,813 |
|
|
8,951 |
|
|
9,086 |
|
|
8,842 |
|
|
- |
|
Accrued
interest payable |
|
578 |
|
|
596 |
|
|
637 |
|
|
519 |
|
|
667 |
|
Accrued expenses and other liabilities |
2,700 |
|
|
2,993 |
|
|
2,607 |
|
|
3,927 |
|
|
3,448 |
|
TOTAL LIABILITIES |
|
1,062,301 |
|
|
1,057,585 |
|
|
1,099,952 |
|
|
1,028,626 |
|
|
1,048,914 |
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
Common
stock |
|
18,330 |
|
|
18,513 |
|
|
19,262 |
|
|
19,326 |
|
|
19,312 |
|
Additional
paid-in-capital |
|
140,870 |
|
|
142,878 |
|
|
150,275 |
|
|
150,877 |
|
|
150,718 |
|
Retained
Earnings |
|
52,675 |
|
|
49,634 |
|
|
46,395 |
|
|
42,947 |
|
|
39,640 |
|
Common stock
issued to deferred compensation trust |
|
(2,815 |
) |
|
(2,730 |
) |
|
(2,652 |
) |
|
(2,652 |
) |
|
(2,615 |
) |
Directors' Deferred Compensation Plan Rabbi Trust |
2,815 |
|
|
2,730 |
|
|
2,652 |
|
|
2,652 |
|
|
2,615 |
|
Accumulated other comprehensive income (loss) |
900 |
|
|
1,024 |
|
|
913 |
|
|
301 |
|
|
(59 |
) |
TOTAL SHAREHOLDERS' EQUITY |
|
212,775 |
|
|
212,049 |
|
|
216,845 |
|
|
213,451 |
|
|
209,611 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY |
|
1,275,076 |
|
|
1,269,634 |
|
|
1,316,797 |
|
|
1,242,077 |
|
|
1,258,525 |
|
|
|
|
|
|
|
|
|
|
|
|
SELECT
BANCORP, INC. |
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS |
(Unaudited) |
|
|
For the Three Months Ended |
|
For the Twelve Months Ended |
|
December 31,2019 |
|
September 30,2019 |
|
June 30,2019 |
|
March 31,2019 |
|
December 31,2018 |
|
December 31,2019 |
|
December 31,2018 |
INTEREST
INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
14,124 |
|
13,924 |
|
|
13,515 |
|
|
13,042 |
|
13,503 |
|
|
54,605 |
|
53,796 |
|
Federal funds sold and interest-earning deposits in other
banks |
258 |
|
581 |
|
|
456 |
|
|
543 |
|
678 |
|
|
1,838 |
|
1,618 |
|
Investments |
434 |
|
503 |
|
|
601 |
|
|
465 |
|
363 |
|
|
2,003 |
|
1,421 |
|
TOTAL
INTEREST INCOME |
14,816 |
|
15,008 |
|
|
14,572 |
|
|
14,050 |
|
14,544 |
|
|
58,446 |
|
56,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
Money
market, NOW and savings deposits |
420 |
|
433 |
|
|
407 |
|
|
356 |
|
362 |
|
|
1,616 |
|
1,339 |
|
Time
deposits |
2,075 |
|
2,248 |
|
|
1,985 |
|
|
1,753 |
|
1,785 |
|
|
8,061 |
|
6,293 |
|
Short-term
debt |
6 |
|
4 |
|
|
26 |
|
|
26 |
|
43 |
|
|
62 |
|
328 |
|
Long-term
debt |
447 |
|
455 |
|
|
457 |
|
|
458 |
|
454 |
|
|
1,817 |
|
1,490 |
|
TOTAL
INTEREST EXPENSE |
2,948 |
|
3,140 |
|
|
2,875 |
|
|
2,593 |
|
2,644 |
|
|
11,556 |
|
9,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INTEREST INCOME |
11,868 |
|
11,868 |
|
|
11,697 |
|
|
11,457 |
|
11,900 |
|
|
46,890 |
|
47,385 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION
FOR (RECOVERY OF) LOAN LOSSES |
302 |
|
231 |
|
|
(207 |
) |
|
112 |
|
(395 |
) |
|
438 |
|
(156 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INTEREST INCOME AFTER |
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION
FOR LOAN LOSSES |
11,566 |
|
11,637 |
|
|
11,904 |
|
|
11,345 |
|
12,295 |
|
|
46,452 |
|
47,541 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees on the sale of mortgages |
148 |
|
218 |
|
|
230 |
|
|
157 |
|
204 |
|
|
753 |
|
497 |
|
Gain on securities |
0 |
|
48 |
|
|
0 |
|
|
0 |
|
0 |
|
|
48 |
|
0 |
|
Service charges on deposit accounts |
303 |
|
308 |
|
|
284 |
|
|
266 |
|
294 |
|
|
1,161 |
|
1,124 |
|
Other fees and income |
995 |
|
874 |
|
|
814 |
|
|
774 |
|
746 |
|
|
3,457 |
|
3,080 |
|
TOTAL
NON-INTEREST INCOME |
1,446 |
|
1,448 |
|
|
1,328 |
|
|
1,197 |
|
1,244 |
|
|
5,419 |
|
4,701 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel |
5,152 |
|
5,124 |
|
|
5,031 |
|
|
4,971 |
|
4,443 |
|
|
20,278 |
|
18,304 |
|
Occupancy and equipment |
973 |
|
1,073 |
|
|
922 |
|
|
727 |
|
1,068 |
|
|
3,695 |
|
3,666 |
|
Deposit insurance |
19 |
|
(30 |
) |
|
90 |
|
|
105 |
|
11 |
|
|
184 |
|
628 |
|
Professional Fees |
503 |
|
518 |
|
|
483 |
|
|
382 |
|
382 |
|
|
1,886 |
|
1,394 |
|
CDI amortization |
193 |
|
208 |
|
|
205 |
|
|
219 |
|
232 |
|
|
825 |
|
1,016 |
|
Merger/acquisition related expenses |
171 |
|
128 |
|
|
107 |
|
|
0 |
|
0 |
|
|
406 |
|
1,826 |
|
Information systems |
974 |
|
852 |
|
|
877 |
|
|
789 |
|
599 |
|
|
3,492 |
|
3,372 |
|
Foreclosed-related expenses |
109 |
|
(9 |
) |
|
10 |
|
|
30 |
|
34 |
|
|
140 |
|
115 |
|
Other |
1,000 |
|
1,067 |
|
|
1,086 |
|
|
1,081 |
|
1,095 |
|
|
4,234 |
|
4,229 |
|
TOTAL
NON-INTEREST EXPENSE |
9,094 |
|
8,931 |
|
|
8,811 |
|
|
8,304 |
|
7,864 |
|
|
35,140 |
|
34,550 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
BEFORE INCOME TAXES |
3,918 |
|
4,154 |
|
|
4,421 |
|
|
4,238 |
|
5,675 |
|
|
16,731 |
|
17,692 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
TAXES |
877 |
|
915 |
|
|
973 |
|
|
931 |
|
1,221 |
|
|
3,696 |
|
3,910 |
|
NET
INCOME |
3,041 |
|
3,239 |
|
|
3,448 |
|
|
3,307 |
|
4,454 |
|
|
13,035 |
|
13,782 |
|
NET INCOME PER COMMON SHARE OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
0.17 |
|
0.17 |
|
|
0.18 |
|
|
0.17 |
|
0.23 |
|
|
0.69 |
|
0.87 |
|
Diluted |
0.16 |
|
0.17 |
|
|
0.18 |
|
|
0.17 |
|
0.23 |
|
|
0.68 |
|
0.87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED
AVERAGE COMMON |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
Outstanding Shares |
18,414,393 |
|
19,028,572 |
|
|
19,318,358 |
|
|
19,315,686 |
|
19,302,263 |
|
|
19,016,808 |
|
15,812,585 |
|
Diluted
Outstanding Shares |
18,460,118 |
|
19,073,235 |
|
|
19,359,492 |
|
|
19,365,354 |
|
19,360,050 |
|
|
19,063,237 |
|
15,877,633 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select Bancorp, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset quality |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For Periods
Ended |
|
December 31,2019 |
|
September 30,2019 |
|
June 30,2019 |
|
March 31,2019 |
|
December 31,2018 |
|
December 31,2019 |
|
December 31,2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans |
|
5,941 |
|
|
|
9,083 |
|
|
|
10,521 |
|
|
|
6,337 |
|
|
|
7,257 |
|
|
|
5,941 |
|
|
|
7,257 |
|
Accruing
TDRs |
|
6,207 |
|
|
|
6,477 |
|
|
|
6,061 |
|
|
|
5,246 |
|
|
|
4,378 |
|
|
|
6,207 |
|
|
|
4,378 |
|
Total
non-performing loans |
|
12,148 |
|
|
|
15,560 |
|
|
|
16,582 |
|
|
|
11,583 |
|
|
|
11,635 |
|
|
|
12,148 |
|
|
|
11,635 |
|
Foreclosed
real estate |
|
3,533 |
|
|
|
1,442 |
|
|
|
1,468 |
|
|
|
1,046 |
|
|
|
1,088 |
|
|
|
3,533 |
|
|
|
1,088 |
|
Total
non-performing assets |
|
15,681 |
|
|
|
17,002 |
|
|
|
18,050 |
|
|
|
12,629 |
|
|
|
12,723 |
|
|
|
15,681 |
|
|
|
12,723 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing
loans past due 90 days or more |
|
1,231 |
|
|
|
2,296 |
|
|
|
2,447 |
|
|
|
3,146 |
|
|
|
3,167 |
|
|
|
1,231 |
|
|
|
3,167 |
|
Allowance
for loan losses |
|
8,324 |
|
|
|
8,056 |
|
|
|
8,303 |
|
|
|
8,510 |
|
|
|
8,669 |
|
|
|
8,324 |
|
|
|
8,669 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans to period ending loans |
|
1.18 |
% |
|
|
1.53 |
% |
|
|
1.66 |
% |
|
|
1.17 |
% |
|
|
1.18 |
% |
|
|
1.18 |
% |
|
|
1.18 |
% |
Non-performing loans & accruing loans past due 90 days or more
to period ending loans |
|
1.30 |
% |
|
|
1.76 |
% |
|
|
1.91 |
% |
|
|
1.49 |
% |
|
|
1.50 |
% |
|
|
1.30 |
% |
|
|
1.50 |
% |
Allowance
for loans to period end loans |
|
0.81 |
% |
|
|
0.79 |
% |
|
|
0.83 |
% |
|
|
0.86 |
% |
|
|
0.88 |
% |
|
|
0.81 |
% |
|
|
0.88 |
% |
Allowance
for loans to non-performing loans |
|
69 |
% |
|
|
52 |
% |
|
|
50 |
% |
|
|
73 |
% |
|
|
75 |
% |
|
|
69 |
% |
|
|
75 |
% |
Allowance
for loans to non-performing Assets |
|
53 |
% |
|
|
47 |
% |
|
|
46 |
% |
|
|
67 |
% |
|
|
68 |
% |
|
|
53 |
% |
|
|
68 |
% |
Allowance
for loans to non-performing Assets and accruing loans past due 90
days or more |
|
49 |
% |
|
|
42 |
% |
|
|
41 |
% |
|
|
54 |
% |
|
|
55 |
% |
|
|
49 |
% |
|
|
55 |
% |
Non-performing assets to total assets |
|
1.23 |
% |
|
|
1.34 |
% |
|
|
1.37 |
% |
|
|
1.02 |
% |
|
|
1.01 |
% |
|
|
1.23 |
% |
|
|
1.01 |
% |
Non-performing assets to accruing loans past due 90 days or
more to total assets |
|
1.33 |
% |
|
|
1.52 |
% |
|
|
1.56 |
% |
|
|
1.27 |
% |
|
|
1.26 |
% |
|
|
1.33 |
% |
|
|
1.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECT BANCORP, INC. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
($
in thousands, except per share data, unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Twelve Months Ended |
|
December 31,2019 |
|
September 30,2019 |
|
June 30,2019 |
|
March 31,2019 |
|
December 31,2018 |
|
December 31,2019 |
|
December 31,2018 |
Net
interest margin - core: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin-tax equivalent (1) |
|
11,901 |
|
|
|
11,903 |
|
|
|
11,740 |
|
|
|
11,496 |
|
|
|
11,937 |
|
|
|
47,037 |
|
|
|
47,535 |
|
Purchased
loan accretion and early payoff charges |
|
(226 |
) |
|
|
(210 |
) |
|
|
(268 |
) |
|
|
(200 |
) |
|
|
(404 |
) |
|
|
(904 |
) |
|
|
(3,051 |
) |
Net Interest
Margin - core (2) (Non-GAAP) |
|
11,675 |
|
|
|
11,693 |
|
|
|
11,472 |
|
|
|
11,296 |
|
|
|
11,533 |
|
|
|
46,133 |
|
|
|
44,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable interest income - core: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
receivable interest income |
|
14,124 |
|
|
|
13,924 |
|
|
|
13,515 |
|
|
|
13,042 |
|
|
|
13,503 |
|
|
|
54,645 |
|
|
|
53,822 |
|
Purchased
loan accretion and early payoff charges |
|
(226 |
) |
|
|
(210 |
) |
|
|
(268 |
) |
|
|
(200 |
) |
|
|
(404 |
) |
|
|
(904 |
) |
|
|
(3,051 |
) |
Loans
receivable interest income - core (Non-GAAP) |
|
13,898 |
|
|
|
13,714 |
|
|
|
13,247 |
|
|
|
12,842 |
|
|
|
13,099 |
|
|
|
53,741 |
|
|
|
50,771 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired and non-acquired loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired
loans receivable |
|
129,595 |
|
|
|
141,765 |
|
|
|
152,090 |
|
|
|
173,771 |
|
|
|
186,243 |
|
|
|
129,595 |
|
|
|
186,243 |
|
Non-acquired
loans receivable |
|
900,380 |
|
|
|
873,163 |
|
|
|
844,972 |
|
|
|
818,030 |
|
|
|
799,797 |
|
|
|
900,380 |
|
|
|
799,797 |
|
Total gross
loans receivable |
|
1,029,975 |
|
|
|
1,014,928 |
|
|
|
997,062 |
|
|
|
991,801 |
|
|
|
986,040 |
|
|
|
1,029,975 |
|
|
|
986,040 |
|
%
Acquired |
|
12.6 |
% |
|
|
14.0 |
% |
|
|
15.3 |
% |
|
|
17.5 |
% |
|
|
18.9 |
% |
|
|
12.6 |
% |
|
|
18.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-acquired
loans |
|
900,380 |
|
|
|
873,163 |
|
|
|
844,972 |
|
|
|
818,030 |
|
|
|
799,797 |
|
|
|
900,380 |
|
|
|
799,797 |
|
Allowance
for loan losses |
|
8,324 |
|
|
|
8,056 |
|
|
|
8,303 |
|
|
|
8,510 |
|
|
|
8,669 |
|
|
|
8,324 |
|
|
|
8,669 |
|
Allowance
for loan losses to non-acquired loans (Non-GAAP) |
|
0.92 |
% |
|
|
0.92 |
% |
|
|
0.98 |
% |
|
|
1.04 |
% |
|
|
1.08 |
% |
|
|
0.92 |
% |
|
|
1.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total gross
loan receivable |
|
1,029,975 |
|
|
|
1,014,928 |
|
|
|
997,062 |
|
|
|
991,801 |
|
|
|
986,040 |
|
|
|
1,029,975 |
|
|
|
986,040 |
|
Allowance
for loan losses |
|
8,324 |
|
|
|
8,056 |
|
|
|
8,303 |
|
|
|
8,510 |
|
|
|
8,669 |
|
|
|
8,324 |
|
|
|
8,669 |
|
Allowance
for loan losses to total gross loans receivable |
|
0.81 |
% |
|
|
0.79 |
% |
|
|
0.83 |
% |
|
|
0.86 |
% |
|
|
0.88 |
% |
|
|
0.81 |
% |
|
|
0.88 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For Periods
Ended |
|
December 31,2019 |
|
September 30,2019 |
|
June 30,2019 |
|
March 31,2019 |
|
December 31,2018 |
|
December 31,2017 |
|
December 31,2016 |
Tangible common equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity |
$ |
212,775 |
|
|
$ |
212,049 |
|
|
$ |
216,845 |
|
|
$ |
213,451 |
|
|
$ |
209,611 |
|
|
$ |
136,115 |
|
|
$ |
104,273 |
|
Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
24,579 |
|
|
|
24,579 |
|
|
|
24,579 |
|
|
|
24,579 |
|
|
|
24,579 |
|
|
|
24,904 |
|
|
|
6,931 |
|
Core deposit intangibles |
|
1,610 |
|
|
|
1,803 |
|
|
|
2,011 |
|
|
|
1,866 |
|
|
|
2,085 |
|
|
|
3,101 |
|
|
|
810 |
|
Tangible common equity |
$ |
186,586 |
|
|
$ |
185,667 |
|
|
$ |
190,255 |
|
|
$ |
187,006 |
|
|
$ |
182,947 |
|
|
$ |
108,110 |
|
|
$ |
96,532 |
|
Common
shares outstanding(3) |
|
18,330,058 |
|
|
|
18,513,078 |
|
|
|
19,261,989 |
|
|
|
19,326,485 |
|
|
|
19,311,505 |
|
|
|
14,009,137 |
|
|
|
11,645,413 |
|
Book value
per common share(4) |
$ |
11.61 |
|
|
$ |
11.45 |
|
|
$ |
11.26 |
|
|
$ |
11.04 |
|
|
$ |
10.85 |
|
|
$ |
9.72 |
|
|
$ |
8.95 |
|
Tangible
book value per common share(5) |
$ |
10.18 |
|
|
$ |
10.03 |
|
|
$ |
9.88 |
|
|
$ |
9.68 |
|
|
$ |
9.47 |
|
|
$ |
7.72 |
|
|
$ |
8.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Net interest
margin-tax equivalent reflects tax-exempt income on a
tax-equivalent basis. |
(2) Net interest
margin-core and yield on loans - core excludes the impact of
purchase accounting accretion, loan payoff charges and related
deferred fees recognized related to early loan
repayments. |
(3) Excludes the
dilutive effect of common stock issuable upon exercise of stock
options. |
|
|
|
|
|
|
|
|
(4) We calculate book
value per common share as shareholders' equity less preferred stock
at the end of the relevant period divided by the outstanding
number of shares of our common stock at the end of the
relevant period. |
(5) We calculate the
tangible book value per common share as total shareholders' equity
less goodwill, preferred stock and core deposit intangibles,
divided by the number of outstanding shares of our common
stock at the end of the relevant period. |
|
|
|
|
|
|
|
|
|
Select Bancorp, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Information and Other Data |
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands, except share and per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
For the Year Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31, |
|
September
30, |
|
June
30, |
|
March
31, |
|
December
31, |
|
December
31, |
|
December
31, |
|
December
31, |
|
2019 |
2019 |
2019 |
|
2019 |
|
2018 |
2019 |
2018 |
2017 |
|
|
|
|
|
|
|
|
|
|
|
Summary of Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income |
$ |
14,816 |
|
|
$ |
15,008 |
|
|
$ |
14,572 |
|
|
$ |
14,050 |
|
|
$ |
14,544 |
|
|
$ |
58,446 |
|
|
$ |
56,835 |
|
|
$ |
39,617 |
|
Total interest expense |
|
2,948 |
|
|
|
3,140 |
|
|
|
2,875 |
|
|
|
2,593 |
|
|
|
2,644 |
|
|
|
11,556 |
|
|
|
9,450 |
|
|
|
5,106 |
|
Net interest income |
|
11,868 |
|
|
|
11,868 |
|
|
|
11,697 |
|
|
|
11,457 |
|
|
|
11,900 |
|
|
|
46,890 |
|
|
|
47,385 |
|
|
|
34,511 |
|
Provision for loan losses |
|
302 |
|
|
|
231 |
|
|
|
(207 |
) |
|
|
112 |
|
|
|
(395 |
) |
|
|
438 |
|
|
|
(156 |
) |
|
|
1,367 |
|
Net interest income after provision |
|
11,566 |
|
|
|
11,637 |
|
|
|
11,904 |
|
|
|
11,345 |
|
|
|
12,295 |
|
|
|
46,452 |
|
|
|
47,541 |
|
|
|
33,144 |
|
Noninterest income |
|
1,446 |
|
|
|
1,448 |
|
|
|
1,328 |
|
|
|
1,197 |
|
|
|
1,244 |
|
|
|
5,419 |
|
|
|
4,701 |
|
|
|
3,072 |
|
Merger/acquisition related expenses |
|
171 |
|
|
|
128 |
|
|
|
107 |
|
|
|
- |
|
|
|
- |
|
|
|
406 |
|
|
|
1,826 |
|
|
|
2,166 |
|
Noninterest expense |
|
8,923 |
|
|
|
8,803 |
|
|
|
8,704 |
|
|
|
8,304 |
|
|
|
7,864 |
|
|
|
34,734 |
|
|
|
32,724 |
|
|
|
25,153 |
|
Income before income taxes |
|
3,918 |
|
|
|
4,154 |
|
|
|
4,421 |
|
|
|
4,238 |
|
|
|
5,675 |
|
|
|
16,731 |
|
|
|
17,692 |
|
|
|
8,897 |
|
Provision for income taxes |
|
877 |
|
|
|
915 |
|
|
|
973 |
|
|
|
931 |
|
|
|
1,221 |
|
|
|
3,696 |
|
|
|
3,910 |
|
|
|
5,712 |
|
Net Income |
|
3,041 |
|
|
|
3,239 |
|
|
|
3,448 |
|
|
|
3,307 |
|
|
|
4,454 |
|
|
|
13,035 |
|
|
|
13,782 |
|
|
|
3,185 |
|
Dividends on Preferred Stock |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net income available to common shareholders |
$ |
3,041 |
|
|
$ |
3,239 |
|
|
$ |
3,448 |
|
|
$ |
3,307 |
|
|
$ |
4,454 |
|
|
$ |
13,035 |
|
|
$ |
13,782 |
|
|
$ |
3,185 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - basic |
$ |
0.17 |
|
|
$ |
0.17 |
|
|
$ |
0.18 |
|
|
$ |
0.17 |
|
|
$ |
0.23 |
|
|
$ |
0.69 |
|
|
$ |
0.87 |
|
|
$ |
0.27 |
|
Earnings per share - diluted |
$ |
0.16 |
|
|
$ |
0.17 |
|
|
$ |
0.18 |
|
|
$ |
0.17 |
|
|
$ |
0.23 |
|
|
$ |
0.68 |
|
|
$ |
0.87 |
|
|
$ |
0.27 |
|
Book value per share |
$ |
11.61 |
|
|
$ |
11.45 |
|
|
$ |
11.26 |
|
|
$ |
11.04 |
|
|
$ |
10.85 |
|
|
$ |
11.61 |
|
|
$ |
10.85 |
|
|
$ |
9.72 |
|
Tangible book value per share(1) |
$ |
10.18 |
|
|
$ |
10.03 |
|
|
$ |
9.88 |
|
|
$ |
9.68 |
|
|
$ |
9.47 |
|
|
$ |
10.18 |
|
|
$ |
9.47 |
|
|
$ |
7.72 |
|
Ending shares outstanding |
|
18,330,058 |
|
|
|
18,513,078 |
|
|
|
19,261,989 |
|
|
|
19,326,485 |
|
|
|
19,311,505 |
|
|
|
18,330,058 |
|
|
|
19,311,505 |
|
|
|
14,009,137 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
18,414,393 |
|
|
|
19,028,572 |
|
|
|
19,318,358 |
|
|
|
19,315,686 |
|
|
|
19,302,263 |
|
|
|
19,016,808 |
|
|
|
15,812,585 |
|
|
|
11,763,050 |
|
Diluted |
|
18,460,118 |
|
|
|
19,073,235 |
|
|
|
19,359,492 |
|
|
|
19,365,354 |
|
|
|
19,360,050 |
|
|
|
19,063,237 |
|
|
|
15,877,633 |
|
|
|
11,826,977 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets(2) |
|
0.95 |
% |
|
|
0.99 |
% |
|
|
1.10 |
% |
|
|
1.08 |
% |
|
|
1.39 |
% |
|
|
1.03 |
% |
|
|
1.12 |
% |
|
|
0.35 |
% |
Return on average equity(2) |
|
5.67 |
% |
|
|
5.93 |
% |
|
|
6.41 |
% |
|
|
6.32 |
% |
|
|
8.52 |
% |
|
|
6.08 |
% |
|
|
8.51 |
% |
|
|
2.93 |
% |
Net interest margin |
|
4.05 |
% |
|
|
3.94 |
% |
|
|
4.06 |
% |
|
|
4.09 |
% |
|
|
4.03 |
% |
|
|
4.04 |
% |
|
|
4.19 |
% |
|
|
4.09 |
% |
Efficiency ratio (3) |
|
67.02 |
% |
|
|
66.11 |
% |
|
|
66.83 |
% |
|
|
65.62 |
% |
|
|
59.83 |
% |
|
|
66.40 |
% |
|
|
62.83 |
% |
|
|
66.93 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period End Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans |
$ |
1,029,975 |
|
|
$ |
1,014,928 |
|
|
$ |
997,062 |
|
|
$ |
991,801 |
|
|
$ |
986,040 |
|
|
$ |
1,029,975 |
|
|
$ |
986,040 |
|
|
$ |
982,626 |
|
Total interest-earning assets |
|
1,167,857 |
|
|
|
1,153,612 |
|
|
|
1,148,417 |
|
|
|
1,103,691 |
|
|
|
1,119,344 |
|
|
|
1,167,857 |
|
|
|
1,119,344 |
|
|
|
1,063,322 |
|
Goodwill |
|
24,579 |
|
|
|
24,579 |
|
|
|
24,579 |
|
|
|
24,579 |
|
|
|
24,579 |
|
|
|
24,579 |
|
|
|
24,579 |
|
|
|
24,904 |
|
Core deposit intangible |
|
1,610 |
|
|
|
1,803 |
|
|
|
2,011 |
|
|
|
1,866 |
|
|
|
2,085 |
|
|
|
1,610 |
|
|
|
2,085 |
|
|
|
3,101 |
|
Total assets |
|
1,275,076 |
|
|
|
1,269,634 |
|
|
|
1,316,797 |
|
|
|
1,242,077 |
|
|
|
1,258,525 |
|
|
|
1,275,076 |
|
|
|
1,258,525 |
|
|
|
1,194,135 |
|
Deposits |
|
992,838 |
|
|
|
987,673 |
|
|
|
1,030,250 |
|
|
|
950,966 |
|
|
|
980,427 |
|
|
|
992,838 |
|
|
|
980,427 |
|
|
|
995,044 |
|
Short-term debt |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
7,000 |
|
|
|
7,000 |
|
|
|
- |
|
|
|
7,000 |
|
|
|
28,279 |
|
Long-term debt |
|
57,372 |
|
|
|
57,372 |
|
|
|
57,372 |
|
|
|
57,372 |
|
|
|
57,372 |
|
|
|
57,372 |
|
|
|
57,372 |
|
|
|
19,372 |
|
Shareholders' equity |
|
212,775 |
|
|
|
212,049 |
|
|
|
216,845 |
|
|
|
213,451 |
|
|
|
209,611 |
|
|
|
212,775 |
|
|
|
209,611 |
|
|
|
136,115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Average Balances: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Loans |
$ |
1,017,750 |
|
|
$ |
1,013,331 |
|
|
$ |
982,876 |
|
|
$ |
985,059 |
|
|
$ |
990,504 |
|
|
$ |
1,004,051 |
|
|
$ |
987,634 |
|
|
$ |
732,089 |
|
Total interest-earning assets |
|
1,166,758 |
|
|
|
1,197,266 |
|
|
|
1,160,387 |
|
|
|
1,086,958 |
|
|
|
1,141,604 |
|
|
|
1,164,149 |
|
|
|
1,119,344 |
|
|
|
813,773 |
|
Core Deposit Intangible |
|
1,680 |
|
|
|
1,878 |
|
|
|
1,741 |
|
|
|
1,951 |
|
|
|
2,171 |
|
|
|
1,812 |
|
|
|
2,547 |
|
|
|
640 |
|
Total Assets |
|
1,272,475 |
|
|
|
1,300,137 |
|
|
|
1,261,972 |
|
|
|
1,238,847 |
|
|
|
1,267,479 |
|
|
|
1,268,728 |
|
|
|
1,228,576 |
|
|
|
898,943 |
|
Deposits |
|
989,721 |
|
|
|
1,013,504 |
|
|
|
970,011 |
|
|
|
949,771 |
|
|
|
987,180 |
|
|
|
981,132 |
|
|
|
989,838 |
|
|
|
738,310 |
|
Short-term debt |
|
- |
|
|
|
- |
|
|
|
6,824 |
|
|
|
7,000 |
|
|
|
10,348 |
|
|
|
3,414 |
|
|
|
21,393 |
|
|
|
34,523 |
|
Long-term debt |
|
57,372 |
|
|
|
57,372 |
|
|
|
57,372 |
|
|
|
57,372 |
|
|
|
57,372 |
|
|
|
57,372 |
|
|
|
49,357 |
|
|
|
14,239 |
|
Shareholders' equity |
|
212,849 |
|
|
|
216,556 |
|
|
|
215,722 |
|
|
|
212,130 |
|
|
|
207,331 |
|
|
|
214,324 |
|
|
|
161,953 |
|
|
|
108,709 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans (4) |
$ |
12,148 |
|
|
$ |
15,560 |
|
|
$ |
16,582 |
|
|
$ |
11,583 |
|
|
$ |
11,635 |
|
|
$ |
12,148 |
|
|
$ |
11,635 |
|
|
$ |
6,978 |
|
Other real estate owned |
|
3,533 |
|
|
|
1,442 |
|
|
|
1,468 |
|
|
|
1,046 |
|
|
|
1,088 |
|
|
|
3,533 |
|
|
|
1,088 |
|
|
|
1,258 |
|
Allowance for loan losses |
|
8,324 |
|
|
|
8,056 |
|
|
|
8,303 |
|
|
|
8,510 |
|
|
|
8,669 |
|
|
|
8,324 |
|
|
|
8,669 |
|
|
|
8,835 |
|
Nonperforming loans (4) to period-end loans |
|
1.18 |
% |
|
|
1.53 |
% |
|
|
1.66 |
% |
|
|
1.17 |
% |
|
|
1.18 |
% |
|
|
1.18 |
% |
|
|
1.18 |
% |
|
|
0.71 |
% |
Allowance for loan losses to period-end loans |
|
0.81 |
% |
|
|
0.79 |
% |
|
|
0.83 |
% |
|
|
0.86 |
% |
|
|
0.88 |
% |
|
|
0.81 |
% |
|
|
0.88 |
% |
|
|
0.90 |
% |
Delinquency ratio (5) |
|
0.34 |
% |
|
|
0.09 |
% |
|
|
0.12 |
% |
|
|
0.41 |
% |
|
|
0.19 |
% |
|
|
0.34 |
% |
|
|
0.19 |
% |
|
|
0.48 |
% |
Net loan charge-offs (recoveries) to average loans (2) |
|
0.01 |
% |
|
|
0.19 |
% |
|
|
0.00 |
% |
|
|
0.11 |
% |
|
|
0.01 |
% |
|
|
0.08 |
% |
|
|
0.00 |
% |
|
|
0.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Tangible
book value per share (a non GAAP measure) is equal to total
shareholders’ equity less goodwill and core deposit
intangibles, divided by the number of outstanding shares of
our common stock at the end of the relevant period. Please refer to
the table above for a reconciliation of this non-GAAP
measure. |
(2)
Annualized. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Efficiency
ratio is calculated as a non-interest expenses divided by the sum
of net interest income and non-interest income. |
(4)
Nonperforming loans consist of non-accrual loans and accruing TDR
loans. |
|
|
|
|
|
|
|
(5) Delinquency
Ratio includes loans 30-89 days past due and excludes non-accrual
loans. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark A. JeffriesExecutive Vice PresidentChief
Financial Officer Office: 910-892-7080 and Direct:
910-897-3603markj@SelectBank.comSelectBank.com
Grafico Azioni Select Bancorp (NASDAQ:SLCT)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Select Bancorp (NASDAQ:SLCT)
Storico
Da Giu 2023 a Giu 2024