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, 2020 of $8.2
million, or $0.46 and $0.45 per basic and diluted share,
respectively, as compared to 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 37.4% in net income
compared to the year ended December 31, 2019. Net income per share
declined approximately 33.3% for basic and 33.8% for diluted per
share for the year ended December 31, 2019. The decline in net
income is primarily attributable to an increase of $5.8 million in
loan loss allowance provision during 2020 as compared to 2019,
incurring debt extinguishment expenses of $1.6 million for the
payoff of $45.0 million of FHLB advances with a composite rate of
2.76% during the 2020 4th quarter, recognized $755,000 in
integration expenses during the year related to the acquisition of
three branches in western North Carolina, and $2.3 million in
deferred interest income related to COVID-19 loan modifications.
These items were partially offset by $2.6 million in revenue from
loan fees associated with loans originated by the Bank as part of
the U.S. Small Business Administration (“SBA”) Paycheck Protection
Program (“PPP”), recognized under the effective interest rate
method. The number of weighted shares outstanding decreased due to
the repurchase by the Company of 834,608 shares of common stock
completed during 2020. Management expects the repurchase of shares
to continue in 2021 under the Company’s previously announced stock
repurchase plan.
For the three-month period ended December 31,
2020, the Company reported net income of $3.9 million, or $0.22 per
basic and diluted share, respectively, as compared to net income of
$2.5 million, or $0.14 per basic and diluted share, respectively,
for the three months ended September 30, 2020, representing an
increase of 57.1% in net income for the 2020 fourth quarter.
Initiatives to expand the market footprint of
the franchise reduced net income in 2020 compared to 2019 due to
the increased expenses associated with the opening of a new branch
in Cornelius, North Carolina (the Charlotte area) and the
acquisition of three western North Carolina branches mentioned
above.
Net Interest Income and Net Interest Margin
Net interest income was $16.0 million for the
fourth quarter of 2020 compared to $11.9 million for the same
period in 2019. On a comparative quarter basis, the Company’s total
interest income was positively affected by increased loan balances
due to growth. Loan yields decreased but were partially offset by
increased loan fee income primarily from PPP loan forgiveness. On a
comparative quarter basis, the Company’s total interest income was
positively affected by increased investment balances due to growth
which was partially offset by decreasing investment yields. Average
total interest-earning assets were $1.6 billion in the fourth
quarter of 2020 compared to $1.2 billion for the same period in
2019. The yield on those assets decreased 27 basis points, from
5.05% in the fourth quarter of 2019 to 4.78% for the same period in
2020. This was primarily due to lower rates on recently purchased
investments and cash in other banks on a comparative quarter
basis.
The Company’s average interest-bearing
liabilities increased by $333.4 million, to $1.1 billion for the
quarter ended December 31, 2020, from $801.4 million for the fourth
quarter of 2019. The cost of those funds decreased from 1.46% to
0.94%, or 52 basis points. During the fourth quarter of 2020, the
Company’s net interest margin was 4.10% and net interest spread was
3.84%. In the fourth quarter of 2019, net interest margin was 4.05%
and net interest spread was 3.59%.
Net interest income was $52.4 million for the
year ended December 31, 2020, an increase of $5.6 million from the
$46.9 million in net interest income reported for the year ended
December 31, 2019. The Company’s total interest income increased by
approximately $4.8 million in 2020 versus 2019, and the cost of
funds decreased by approximately $797,000 from the prior period.
The Company’s increase in total interest income was fueled by an
increase in loans and purchases of securities. Average total
interest-earning assets were $1.4 billion for 2020 compared with
$1.2 billion for 2019, while the yield on those assets decreased 46
basis points from 5.03% to 4.57%, which was primarily due to the
decrease in rates on purchased investment securities and other
earning assets.
The Company’s average interest-bearing
liabilities increased by $183.4 million, to $978.6 million for the
year ended December 31, 2020, from $795.2 million for the year
ended December 31, 2019, with the cost of those funds decreasing
from 1.45% to 1.10%, or 35 basis points. For the year ended
December 31, 2020, the Company’s net interest margin was 3.79% and
net interest spread was 3.47%. For the year ended December 31,
2019, net interest margin was 4.04% and net interest spread was
3.58%.
Provision for Loan Losses and Asset Quality
During the fourth quarter of 2020, the Company
recorded a provision for loan losses of $400,000, 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 $302,000 provision for the fourth quarter of
2019. In the third quarter of 2020, the Company recorded a
provision for loan losses of $1.6 million, based primarily on
economic disruptions due to COVID-19, net charge-offs of $104,000
and changes in qualitative loan factors during the quarter. In the
fourth quarter of 2020, the Company incurred net recoveries of
$147,000, a net recovery rate of 0.05% of average loans, compared
to a net charge-off rate of 0.04% in the third quarter of 2020.
For the year ended December 31, 2020, the
Company recorded a provision for loan losses of $6.2 million,
compared to a provision of $438,000 for 2019. This increase for
2020 was based primarily on the market disruption from COVID-19 and
its effect on economic indicators, loan growth, net charge-offs
incurred and the increase in qualitative loan factors. The net
charge-off ratio for the year ended December 31, 2020 was 0.04%,
compared to 0.08% for the year ended December 31, 2019.
The allowance for loan losses as a percentage of
gross loans at December 31, 2020 was 1.08% compared to 0.81% at
December 31, 2019. At December 31, 2020 the allowance for loan
losses amounted to $14.1 million and the credit mark on acquired
loans amounted to $6.4 million which could be used to absorb loan
charge offs.
Non-interest Income
Non-interest income for the quarter ended
December 31, 2020 was $1.5 million, an increase of $95,000 from
$1.4 million in the fourth quarter of 2019. Service charges on
deposit accounts decreased $12,000, to $291,000 for the quarter
ended December 31, 2020, from $303,000 for the fourth quarter of
2019. Other non-deposit fees and income increased $7,000 from the
fourth quarter of 2019 to the fourth quarter of 2020. Fees from
presold mortgages increased by $100,000 in the fourth quarter of
2020 to $248,000, from $148,000 in the fourth quarter of 2019. The
Company did not sell any investment securities in the fourth
quarter of 2020 or fourth quarter of 2019.
Non-interest income for the year ended December
31, 2020 was $6.1 million, an increase of $701,000, or 12.9%, from
the year ended December 31, 2019. Service charges on deposit
accounts decreased $69,000, to $1.1 million, for the year ended
December 31, 2020 from $1.2 million for the year ended December 31,
2019. Other non-deposit fees and income increased $158,000 from the
year ended December 31, 2019 to the year ended December 31, 2020.
Fees from presold mortgages increased non-interest income by
$660,000 in 2020 to $1.4 million from $753,000 for 2019. The
Company sold two investment securities for a gain of $48,000 in
2019. The Company did not sell any investment securities during
2020.
Non-interest Expenses
Non-interest expenses increased by $3.0 million,
or 33.4%, to $12.1 million for the quarter ended December 31, 2020,
from $9.1 million for the same period in 2019. The following are
highlights of the significant categories of non-interest expenses
during the fourth quarter of 2020 compared to the same period in
2019:
- Personnel expenses increased
$825,000, to $6.0 million, primarily due to increased staff for new
and acquired branches, employment taxes and benefits costs.
- Foreclosed real estate-related
expense increased $233,000, primarily due to write-downs and
maintenance expenses.
- Deposit insurance expense increased
by $355,000.
- Debt extinguishment expenses of
$1.6 million were incurred due to the payoff of FHLB advances.
- Merger/integration-related expenses
associated with branch purchases and divestitures decreased by
$171,000.
- Other non-interest expenses
increased by $193,000, primarily due to additional branches and
other various administrative related non-interest expenses.
Non-interest expenses increased by $5.2 million,
or 14.8%, to $41.9 million for the twelve months ended December 31,
2020, from $35.1 million for the same period in 2019. The following
are highlights of the significant categories of non-interest
expenses during the twelve months ended December 31, 2020 versus
2019:
- Personnel expenses increased $2.9
million, to $23.1 million, primarily due to additions in branch
staff plus cost of living increases and related employment taxes
and benefit costs.
- Occupancy and equipment expenses
increased by $216,000 primarily due to branch acquisitions and
branch start-up.
- Deposit insurance expense increased
$624,000.
- Professional fees decreased by
$234,000.
- Information systems expense
increased $609,000 due primarily to additional software and
security costs plus additional accounts from branch
acquisitions.
- Debt extinguishment expenses of
$1.6 million were incurred due to the payoff of FHLB advances.
- Merger/integration-related expenses
increased by $349,000 primarily due to the acquisition of three
branches in western North Carolina during 2020.
- Foreclosed real estate expenses
increased $623,000 due to write downs and disposal costs in
2020.
Income Taxes
The Company’s effective tax rate was 22.1% and
22.4% for the quarters ended December 31, 2020 and 2019,
respectively. The Company’s effective tax rate was 21.3% and 22.1%
for the years ended December 31, 2020 and 2019, respectively.
Balance Sheet and Capital
Total assets at December 31, 2020 were $1.7
billion, a 35.6% increase from a year earlier. Gross loans at
December 31, 2020 were $1.3 billion, up $274.4 million, or 26.6%,
from a year earlier; total deposits were $1.5 billion, an increase
of $493.0 million, or 49.7%, from a year earlier.
Retail deposit growth (excludes brokered
deposits and internet time deposits) grew at a rate of 49.65% for
2020. Wholesale deposits decreased from $45.0 million at December
31, 2019 to $4.6 million at December 31, 2020 as we continued to
emphasize core deposit growth to replace wholesale deposits.
Comments of the Chief Executive Officer
William L Hedgepeth, II, President and CEO of
the Company, commented, “Our commitment to expand our market
footprint and implement our initiatives continued in 2020 even as
we addressed major disruptions in the economy caused by the
COVID-19 pandemic. We opened the Cornelius branch in the Charlotte
market in early February plus acquired three branches in western
North Carolina in mid-April during the height of the pandemic. We
were very involved in assisting businesses in the communities we
serve with the Small Business Administration’s Paycheck Protection
Program (PPP) and working hand-in-hand with customers who requested
temporary loan modifications to provide time for those businesses
to adopt changes to their operations as they adjusted to the new
normal.”
“With the onset of the COVID-19 pandemic, Select
Bank & Trust stood ready to assist our customers. We granted
467 COVID-19 deferrals totaling $254.2 million at the beginning of
the pandemic. As of December 31, 2020, we had 48 COVID-19 deferrals
outstanding that totaled $32.7 million or 2.5% of total loans
outstanding. We remain prepared to work with our customers that
might need assistance in 2021.”
“We also originated 1,242 SBA PPP loans totaling
$95.2 million. As of December 31, 2020, we had 786 SBA PPP loans
remaining with outstanding balances totaling $55.5 million or 4.3%
of total loans outstanding. Many of those loans are in varying
stages of forgiveness. In 2020 we recognized $2.6 million in SBA
PPP fee income. We stand ready to assist our customers and
prospective customers in 2021 should they decide to pursue SBA PPP
loans for their businesses.”
Mr. Hedgepeth added, “We continue to review
opportunities for expansion 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 expansion which
meet our criteria.”
About Select Bank & Trust
Company
Select Bank & Trust has 22 full-service
offices in these North Carolina communities: Dunn, Burlington,
Charlotte, Clinton, Cornelius (Charlotte), Elizabeth City,
Fayetteville, Franklin, Goldsboro, Greenville, Highlands, Holly
Springs (Raleigh area), Leland, Lillington, Lumberton, Morehead
City, Raleigh, Sylva and Wilmington, North Carolina; in the
following South Carolina communities: Blacksburg and Rock Hill; and
in Virginia Beach, Virginia. The Bank also has loan production
offices in Wilson, Durham and Winston-Salem, North Carolina.
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: the ongoing COVID-19
pandemic and measures intended to prevent its spread, which include
wide disruptions to business activity that may impact the financial
strength of our borrowers; 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 divestures and consolidations;
regulatory changes; impacts from the recent presidential election,
change in congressional leadership, and change in executive branch
leadership, including regulatory agendas that may impact the
business climate in which we operate; 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,
2020 |
|
September
30, 2020 |
June 30,
2020 |
|
March 31,
2020 |
|
December 31,
2019 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
23,324 |
|
|
$ |
25,068 |
|
|
$ |
24,037 |
|
|
$ |
20,030 |
|
|
$ |
19,110 |
|
|
Interest-earning deposits in other banks |
|
87,399 |
|
|
|
249,541 |
|
|
|
157,521 |
|
|
|
35,544 |
|
|
|
50,920 |
|
|
Federal funds sold |
|
5,364 |
|
|
|
8,046 |
|
|
|
9,726 |
|
|
|
11,673 |
|
|
|
9,047 |
|
|
Investment securities available for sale, at fair value |
|
194,492 |
|
|
|
87,434 |
|
|
|
62,958 |
|
|
|
64,738 |
|
|
|
72,367 |
|
|
Loans held for sale |
|
2,064 |
|
|
|
2,945 |
|
|
|
3,455 |
|
|
|
1,606 |
|
|
|
928 |
|
|
Loans |
|
1,304,384 |
|
|
|
1,283,457 |
|
|
|
1,249,999 |
|
|
|
1,039,514 |
|
|
|
1,029,975 |
|
|
Allowance for loan losses |
|
(14,108 |
) |
|
|
(13,561 |
) |
|
|
(12,054 |
) |
|
|
(10,586 |
) |
|
|
(8,324 |
) |
|
NET
LOANS |
|
1,290,276 |
|
|
|
1,269,896 |
|
|
|
1,237,945 |
|
|
|
1,028,928 |
|
|
|
1,021,651 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued interest receivable |
|
5,110 |
|
|
|
4,486 |
|
|
|
4,400 |
|
|
|
3,839 |
|
|
|
4,189 |
|
|
Stock in Federal Home Loan Bank of Atlanta, at cost |
|
1,147 |
|
|
|
3,059 |
|
|
|
3,059 |
|
|
|
3,059 |
|
|
|
3,045 |
|
|
Other non-marketable securities |
|
709 |
|
|
|
718 |
|
|
|
718 |
|
|
|
718 |
|
|
|
719 |
|
|
Foreclosed real estate |
|
2,172 |
|
|
|
3,237 |
|
|
|
3,561 |
|
|
|
3,737 |
|
|
|
3,533 |
|
|
Premises and equipment, net |
|
20,587 |
|
|
|
20,883 |
|
|
|
20,893 |
|
|
|
17,868 |
|
|
|
17,791 |
|
|
Right of use lease asset |
|
8,558 |
|
|
|
8,756 |
|
|
|
8,953 |
|
|
|
8,414 |
|
|
|
8,596 |
|
|
Bank owned life insurance |
|
30,432 |
|
|
|
30,271 |
|
|
|
30,110 |
|
|
|
29,950 |
|
|
|
29,789 |
|
|
Goodwill |
|
42,907 |
|
|
|
41,914 |
|
|
|
41,914 |
|
|
|
24,579 |
|
|
|
24,579 |
|
|
Core deposit intangible ("CDI") |
|
1,513 |
|
|
|
1,677 |
|
|
|
1,856 |
|
|
|
1,431 |
|
|
|
1,610 |
|
|
Other assets |
|
13,991 |
|
|
|
14,015 |
|
|
|
7,854 |
|
|
|
7,380 |
|
|
|
7,202 |
|
|
TOTAL
ASSETS |
$ |
1,730,045 |
|
|
$ |
1,771,946 |
|
|
$ |
1,618,960 |
|
|
$ |
1,263,494 |
|
|
$ |
1,275,076 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Demand |
$ |
395,916 |
|
|
$ |
408,209 |
|
|
$ |
400,098 |
|
|
$ |
250,031 |
|
|
$ |
240,305 |
|
|
Savings |
|
51,843 |
|
|
|
51,629 |
|
|
|
52,597 |
|
|
|
41,815 |
|
|
|
43,128 |
|
|
Money market and NOW |
|
649,677 |
|
|
|
610,275 |
|
|
|
495,609 |
|
|
|
306,051 |
|
|
|
280,145 |
|
|
Time |
|
388,381 |
|
|
|
402,667 |
|
|
|
390,449 |
|
|
|
384,754 |
|
|
|
429,260 |
|
|
TOTAL
DEPOSITS |
|
1,485,817 |
|
|
|
1,472,780 |
|
|
|
1,338,753 |
|
|
|
982,651 |
|
|
|
992,838 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt |
|
- |
|
|
|
20,000 |
|
|
|
20,000 |
|
|
|
20,000 |
|
|
|
- |
|
|
Long-term debt |
|
12,372 |
|
|
|
37,372 |
|
|
|
37,372 |
|
|
|
37,372 |
|
|
|
57,372 |
|
|
Lease Liability |
|
8,930 |
|
|
|
9,089 |
|
|
|
9,243 |
|
|
|
8,669 |
|
|
|
8,813 |
|
|
Accrued interest payable |
|
246 |
|
|
|
449 |
|
|
|
457 |
|
|
|
536 |
|
|
|
578 |
|
|
Accrued expenses and other liabilities |
|
7,312 |
|
|
|
18,889 |
|
|
|
1,597 |
|
|
|
2,181 |
|
|
|
2,700 |
|
|
TOTAL
LIABILITIES |
|
1,514,677 |
|
|
|
1,558,579 |
|
|
|
1,407,422 |
|
|
|
1,051,409 |
|
|
|
1,062,301 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
Common stock |
|
17,507 |
|
|
|
17,787 |
|
|
|
17,863 |
|
|
|
18,056 |
|
|
|
18,330 |
|
|
Additional paid-in-capital |
|
135,058 |
|
|
|
137,130 |
|
|
|
137,559 |
|
|
|
138,788 |
|
|
|
140,870 |
|
|
Retained earnings |
|
60,838 |
|
|
|
56,917 |
|
|
|
54,460 |
|
|
|
53,779 |
|
|
|
52,675 |
|
|
Common stock issued to deferred compensation trust |
|
(2,416 |
) |
|
|
(2,352 |
) |
|
|
(2,553 |
) |
|
|
(2,791 |
) |
|
|
(2,815 |
) |
|
Directors' Deferred Compensation Plan Rabbi Trust |
|
2,416 |
|
|
|
2,352 |
|
|
|
2,553 |
|
|
|
2,791 |
|
|
|
2,815 |
|
|
Accumulated other comprehensive income |
|
1,965 |
|
|
|
1,533 |
|
|
|
1,656 |
|
|
|
1,462 |
|
|
|
900 |
|
|
TOTAL
SHAREHOLDERS' EQUITY |
|
215,368 |
|
|
|
213,367 |
|
|
|
211,538 |
|
|
|
212,085 |
|
|
|
212,775 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES & SHAREHOLDERS' EQUITY |
$ |
1,730,045 |
|
|
$ |
1,771,946 |
|
|
$ |
1,618,960 |
|
|
$ |
1,263,494 |
|
|
$ |
1,275,076 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECT
BANCORP, INC. |
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Twelve Months Ended |
|
|
December 31, 2020 |
|
September 30, 2020 |
|
June 30, 2020 |
|
March 31, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
|
|
|
|
|
(Dollars in
thousands, except for share amounts) |
|
INTEREST
INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
17,901 |
|
$ |
15,404 |
|
$ |
14,086 |
|
$ |
13,589 |
|
|
$ |
14,124 |
|
$ |
60,980 |
|
$ |
54,605 |
|
Federal funds sold and interest-earning deposits in other
banks |
|
52 |
|
|
54 |
|
|
33 |
|
|
168 |
|
|
|
258 |
|
|
307 |
|
|
1,838 |
|
Investments |
|
752 |
|
|
367 |
|
|
381 |
|
|
421 |
|
|
|
434 |
|
|
1,921 |
|
|
2,003 |
|
TOTAL
INTEREST INCOME |
|
18,705 |
|
|
15,825 |
|
|
14,500 |
|
|
14,178 |
|
|
|
14,816 |
|
|
63,208 |
|
|
58,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money
market, NOW and savings deposits |
|
1,041 |
|
|
891 |
|
|
648 |
|
|
348 |
|
|
|
420 |
|
|
2,928 |
|
|
1,616 |
|
Time
deposits |
|
1,269 |
|
|
1,415 |
|
|
1,576 |
|
|
1,931 |
|
|
|
2,075 |
|
|
6,191 |
|
|
8,061 |
|
Short-term
debt |
|
131 |
|
|
145 |
|
|
141 |
|
|
87 |
|
|
|
6 |
|
|
504 |
|
|
62 |
|
Long-term
debt |
|
240 |
|
|
263 |
|
|
281 |
|
|
352 |
|
|
|
447 |
|
|
1,136 |
|
|
1,817 |
|
TOTAL
INTEREST EXPENSE |
|
2,681 |
|
|
2,714 |
|
|
2,646 |
|
|
2,718 |
|
|
|
2,948 |
|
|
10,759 |
|
|
11,556 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INTEREST INCOME |
|
16,024 |
|
|
13,111 |
|
|
11,854 |
|
|
11,460 |
|
|
|
11,868 |
|
|
52,449 |
|
|
46,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION
FOR LOAN LOSSES |
|
400 |
|
|
1,638 |
|
|
1,933 |
|
|
2,273 |
|
|
|
302 |
|
|
6,244 |
|
|
438 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INTEREST INCOME AFTER PROVISION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR LOAN
LOSSES |
|
15,624 |
|
|
11,473 |
|
|
9,921 |
|
|
9,187 |
|
|
|
11,566 |
|
|
46,205 |
|
|
46,452 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees on the sale of mortgages |
|
248 |
|
|
517 |
|
|
355 |
|
|
293 |
|
|
|
148 |
|
|
1,413 |
|
|
753 |
|
Gain on securities |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
48 |
|
Service charges on deposit accounts |
|
291 |
|
|
257 |
|
|
206 |
|
|
338 |
|
|
|
303 |
|
|
1,092 |
|
|
1,161 |
|
Other fees and income |
|
1,002 |
|
|
950 |
|
|
850 |
|
|
813 |
|
|
|
995 |
|
|
3,615 |
|
|
3,457 |
|
TOTAL
NON-INTEREST INCOME |
|
1,541 |
|
|
1,724 |
|
|
1,411 |
|
|
1,444 |
|
|
|
1,446 |
|
|
6,120 |
|
|
5,419 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel |
|
5,977 |
|
|
5,742 |
|
|
5,786 |
|
|
5,632 |
|
|
|
5,152 |
|
|
23,137 |
|
|
20,278 |
|
Occupancy and equipment |
|
986 |
|
|
1,008 |
|
|
986 |
|
|
931 |
|
|
|
973 |
|
|
3,911 |
|
|
3,695 |
|
Deposit insurance |
|
374 |
|
|
370 |
|
|
76 |
|
|
(12 |
) |
|
|
19 |
|
|
808 |
|
|
184 |
|
Professional Fees |
|
430 |
|
|
399 |
|
|
451 |
|
|
372 |
|
|
|
503 |
|
|
1,652 |
|
|
1,886 |
|
CDI amortization |
|
164 |
|
|
179 |
|
|
195 |
|
|
179 |
|
|
|
193 |
|
|
717 |
|
|
825 |
|
Merger/acquisition related expenses |
|
- |
|
|
7 |
|
|
709 |
|
|
39 |
|
|
|
171 |
|
|
755 |
|
|
406 |
|
Information systems |
|
1,049 |
|
|
1,043 |
|
|
972 |
|
|
1,038 |
|
|
|
974 |
|
|
4,102 |
|
|
3,492 |
|
Foreclosed-related expenses |
|
342 |
|
|
228 |
|
|
187 |
|
|
5 |
|
|
|
109 |
|
|
762 |
|
|
140 |
|
Debt extinguishment |
|
1,616 |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
1,616 |
|
|
- |
|
Other |
|
1,193 |
|
|
1,091 |
|
|
1,140 |
|
|
1,063 |
|
|
|
1,000 |
|
|
4,487 |
|
|
4,234 |
|
TOTAL
NON-INTEREST EXPENSE |
|
12,131 |
|
|
10,067 |
|
|
10,502 |
|
|
9,247 |
|
|
|
9,094 |
|
|
41,947 |
|
|
35,140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
BEFORE INCOME TAXES |
|
5,034 |
|
|
3,130 |
|
|
830 |
|
|
1,384 |
|
|
|
3,918 |
|
|
10,378 |
|
|
16,731 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
TAXES |
|
1,113 |
|
|
673 |
|
|
149 |
|
|
280 |
|
|
|
877 |
|
|
2,215 |
|
|
3,696 |
|
NET
INCOME |
$ |
3,921 |
|
$ |
2,457 |
|
$ |
681 |
|
$ |
1,104 |
|
|
$ |
3,041 |
|
$ |
8,163 |
|
$ |
13,035 |
|
NET INCOME PER COMMON SHARE OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.22 |
|
$ |
0.14 |
|
$ |
0.04 |
|
$ |
0.06 |
|
|
$ |
0.17 |
|
$ |
0.46 |
|
$ |
0.69 |
|
Diluted |
$ |
0.22 |
|
$ |
0.14 |
|
$ |
0.04 |
|
$ |
0.06 |
|
|
$ |
0.16 |
|
$ |
0.45 |
|
$ |
0.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED
AVERAGE COMMON |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
Outstanding Shares |
|
17,637,540 |
|
|
17,847,913 |
|
|
18,013,863 |
|
|
18,255,351 |
|
|
|
18,414,393 |
|
|
17,937,596 |
|
|
19,016,808 |
|
Diluted
Outstanding Shares |
|
17,661,922 |
|
|
17,866,822 |
|
|
18,030,136 |
|
|
18,287,064 |
|
|
|
18,460,118 |
|
|
17,961,258 |
|
|
19,063,237 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select Bancorp, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset quality |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For Periods Ended |
|
|
December 31, 2020 |
|
September 30, 2020 |
|
June 30, 2020 |
|
March 31, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
|
|
|
|
|
(Dollars in
thousands, except for share amounts, unaudited) |
|
Non-accrual
loans |
$ |
6,790 |
|
|
$ |
7,695 |
|
|
$ |
7,979 |
|
|
$ |
7,201 |
|
|
$ |
5,941 |
|
|
$ |
6,790 |
|
|
$ |
5,941 |
|
|
Accruing
TDRs |
|
7,506 |
|
|
|
6,044 |
|
|
|
6,420 |
|
|
|
5,619 |
|
|
|
6,207 |
|
|
|
7,506 |
|
|
|
6,207 |
|
|
Total
non-performing loans |
|
14,296 |
|
|
|
13,739 |
|
|
|
14,399 |
|
|
|
12,820 |
|
|
|
12,148 |
|
|
|
14,296 |
|
|
|
12,148 |
|
|
Foreclosed
real estate |
|
2,172 |
|
|
|
3,237 |
|
|
|
3,561 |
|
|
|
3,737 |
|
|
|
3,533 |
|
|
|
2,172 |
|
|
|
3,533 |
|
|
Total
non-performing assets |
$ |
16,468 |
|
|
$ |
16,976 |
|
|
$ |
17,960 |
|
|
$ |
16,557 |
|
|
$ |
15,681 |
|
|
$ |
16,468 |
|
|
$ |
15,681 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing
loans past due 90 days or more |
$ |
802 |
|
|
$ |
1,548 |
|
|
$ |
1,326 |
|
|
$ |
1,182 |
|
|
$ |
1,231 |
|
|
$ |
802 |
|
|
$ |
1,231 |
|
|
Allowance
for loan losses |
$ |
14,108 |
|
|
$ |
13,561 |
|
|
$ |
12,054 |
|
|
$ |
10,586 |
|
|
$ |
8,324 |
|
|
$ |
14,108 |
|
|
$ |
8,324 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans to period ending loans |
|
1.10 |
% |
|
|
1.07 |
% |
|
|
1.15 |
% |
|
|
1.23 |
% |
|
|
1.18 |
% |
|
|
1.10 |
% |
|
|
1.18 |
% |
|
Non-performing loans & accruing loans past due 90 days or more
to period ending loans |
|
1.16 |
% |
|
|
1.19 |
% |
|
|
1.26 |
% |
|
|
1.35 |
% |
|
|
1.30 |
% |
|
|
1.16 |
% |
|
|
1.30 |
% |
|
Allowance
for loans to period end loans |
|
1.08 |
% |
|
|
1.06 |
% |
|
|
0.96 |
% |
|
|
1.02 |
% |
|
|
0.81 |
% |
|
|
1.08 |
% |
|
|
0.81 |
% |
|
Allowance
for loans to non-performing loans |
|
99 |
% |
|
|
99 |
% |
|
|
84 |
% |
|
|
83 |
% |
|
|
69 |
% |
|
|
99 |
% |
|
|
69 |
% |
|
Allowance
for loans to non-performing Assets |
|
86 |
% |
|
|
80 |
% |
|
|
67 |
% |
|
|
64 |
% |
|
|
53 |
% |
|
|
86 |
% |
|
|
53 |
% |
|
Allowance
for loans to non-performing Assets and accruing loans past due 90
days or more |
|
82 |
% |
|
|
73 |
% |
|
|
63 |
% |
|
|
60 |
% |
|
|
49 |
% |
|
|
82 |
% |
|
|
49 |
% |
|
Non-performing assets to total assets |
|
0.95 |
% |
|
|
0.96 |
% |
|
|
1.11 |
% |
|
|
1.31 |
% |
|
|
1.23 |
% |
|
|
0.95 |
% |
|
|
1.23 |
% |
|
Non-performing assets to accruing loans past due 90 days or more to
total assets |
|
1.00 |
% |
|
|
1.05 |
% |
|
|
1.19 |
% |
|
|
1.40 |
% |
|
|
1.33 |
% |
|
|
1.00 |
% |
|
|
1.33 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2020 |
|
September 30, 2020 |
|
June 30, 2020 |
|
March 31, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
|
Net
interest margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin-tax equivalent (1) |
$ |
16,075 |
|
|
$ |
13,141 |
|
|
$ |
11,883 |
|
|
$ |
11,489 |
|
|
$ |
11,901 |
|
|
$ |
52,588 |
|
|
$ |
47,037 |
|
|
Purchased
loan accretion and early payoff charges |
|
(506 |
) |
|
|
(455 |
) |
|
|
(620 |
) |
|
|
(105 |
) |
|
|
(226 |
) |
|
|
(1,581 |
) |
|
|
(904 |
) |
|
Net Interest
Margin(2) (Non-GAAP) |
$ |
15,569 |
|
|
$ |
12,686 |
|
|
$ |
11,263 |
|
|
$ |
11,384 |
|
|
$ |
11,675 |
|
|
$ |
51,007 |
|
|
$ |
46,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
receivable interest income |
$ |
17,913 |
|
|
$ |
15,415 |
|
|
$ |
14,097 |
|
|
$ |
13,600 |
|
|
$ |
14,135 |
|
|
$ |
61,025 |
|
|
$ |
54,645 |
|
|
Purchased
loan accretion and early payoff charges |
|
(506 |
) |
|
|
(455 |
) |
|
|
(620 |
) |
|
|
(105 |
) |
|
|
(226 |
) |
|
|
(1,581 |
) |
|
|
(904 |
) |
|
Loans
receivable interest income (Non-GAAP) |
$ |
17,407 |
|
|
$ |
14,960 |
|
|
$ |
13,477 |
|
|
$ |
13,495 |
|
|
$ |
13,909 |
|
|
$ |
59,444 |
|
|
$ |
53,741 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired and non-acquired loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired
loans receivable |
$ |
180,152 |
|
|
$ |
199,794 |
|
|
$ |
213,466 |
|
|
$ |
122,363 |
|
|
$ |
129,595 |
|
|
$ |
180,152 |
|
|
$ |
129,595 |
|
|
Non-acquired
loans receivable |
|
1,124,232 |
|
|
|
1,083,663 |
|
|
|
1,036,533 |
|
|
|
917,151 |
|
|
|
900,380 |
|
|
|
1,124,232 |
|
|
|
900,380 |
|
|
Total gross
loans receivable |
$ |
1,304,384 |
|
|
$ |
1,283,457 |
|
|
$ |
1,249,999 |
|
|
$ |
1,039,514 |
|
|
$ |
1,029,975 |
|
|
$ |
1,304,384 |
|
|
$ |
1,029,975 |
|
|
%
Acquired |
|
13.8 |
% |
|
|
15.6 |
% |
|
|
17.1 |
% |
|
|
11.8 |
% |
|
|
12.6 |
% |
|
|
13.8 |
% |
|
|
12.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-acquired
loans |
$ |
1,124,232 |
|
|
$ |
1,083,663 |
|
|
$ |
1,036,533 |
|
|
$ |
917,151 |
|
|
$ |
900,380 |
|
|
$ |
1,124,232 |
|
|
$ |
900,380 |
|
|
Allowance
for loan losses |
|
14,108 |
|
|
|
13,561 |
|
|
|
12,054 |
|
|
|
10,586 |
|
|
|
8,324 |
|
|
|
14,108 |
|
|
|
8,324 |
|
|
Allowance
for loan losses to non-acquired loans (Non-GAAP) |
|
1.25 |
% |
|
|
1.25 |
% |
|
|
1.16 |
% |
|
|
1.15 |
% |
|
|
0.92 |
% |
|
|
1.25 |
% |
|
|
0.92 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total gross
loan receivable |
$ |
1,304,384 |
|
|
$ |
1,283,457 |
|
|
$ |
1,249,999 |
|
|
$ |
1,039,514 |
|
|
$ |
1,029,975 |
|
|
$ |
1,304,384 |
|
|
$ |
1,029,975 |
|
|
Allowance
for loan losses |
|
14,108 |
|
|
|
13,561 |
|
|
|
12,054 |
|
|
|
10,586 |
|
|
|
8,324 |
|
|
|
14,108 |
|
|
|
8,324 |
|
|
Allowance
for loan losses to total gross loans receivable |
|
1.08 |
% |
|
|
1.06 |
% |
|
|
0.96 |
% |
|
|
1.02 |
% |
|
|
0.81 |
% |
|
|
1.08 |
% |
|
|
0.81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For Periods Ended |
|
|
December 31, 2020 |
|
September 30, 2020 |
|
June 30, 2020 |
|
March 31, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
|
Tangible common equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity |
$ |
215,368 |
|
|
$ |
213,367 |
|
|
$ |
211,538 |
|
|
$ |
212,085 |
|
|
$ |
212,775 |
|
|
$ |
215,368 |
|
|
$ |
212,775 |
|
|
Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
42,907 |
|
|
|
41,914 |
|
|
|
41,914 |
|
|
|
24,579 |
|
|
|
24,579 |
|
|
|
42,907 |
|
|
|
24,579 |
|
|
Core deposit intangibles |
|
1,513 |
|
|
|
1,677 |
|
|
|
1,856 |
|
|
|
1,431 |
|
|
|
1,610 |
|
|
|
1,513 |
|
|
|
1,610 |
|
|
Tangible common equity |
$ |
170,948 |
|
|
$ |
169,776 |
|
|
$ |
167,768 |
|
|
$ |
186,075 |
|
|
$ |
186,586 |
|
|
$ |
170,948 |
|
|
$ |
186,586 |
|
|
Common
shares outstanding(3) |
|
17,507,103 |
|
|
|
17,786,552 |
|
|
|
17,862,554 |
|
|
|
18,055,692 |
|
|
|
18,330,058 |
|
|
|
17,507,103 |
|
|
|
18,330,058 |
|
|
Book value
per common share(4) |
$ |
12.30 |
|
|
$ |
12.00 |
|
|
$ |
11.84 |
|
|
$ |
11.75 |
|
|
$ |
11.61 |
|
|
$ |
12.30 |
|
|
$ |
11.61 |
|
|
Tangible
book value per common share(5) |
$ |
9.76 |
|
|
$ |
9.55 |
|
|
$ |
9.39 |
|
|
$ |
10.31 |
|
|
$ |
10.18 |
|
|
$ |
9.76 |
|
|
$ |
10.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 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, |
|
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
|
|
2020 |
|
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income |
$ |
18,705 |
|
|
$ |
15,825 |
|
|
$ |
14,500 |
|
|
$ |
14,178 |
|
|
$ |
14,816 |
|
|
$ |
63,208 |
|
|
$ |
58,446 |
|
|
$ |
56,835 |
|
|
Total interest expense |
|
2,681 |
|
|
|
2,714 |
|
|
|
2,646 |
|
|
|
2,718 |
|
|
|
2,948 |
|
|
|
10,759 |
|
|
|
11,556 |
|
|
|
9,450 |
|
|
Net interest income |
|
16,024 |
|
|
|
13,111 |
|
|
|
11,854 |
|
|
|
11,460 |
|
|
|
11,868 |
|
|
|
52,449 |
|
|
|
46,890 |
|
|
|
47,385 |
|
|
Provision for loan losses |
|
400 |
|
|
|
1,638 |
|
|
|
1,933 |
|
|
|
2,273 |
|
|
|
302 |
|
|
|
6,244 |
|
|
|
438 |
|
|
|
(156 |
) |
|
Net interest income after provision |
|
15,624 |
|
|
|
11,473 |
|
|
|
9,921 |
|
|
|
9,187 |
|
|
|
11,566 |
|
|
|
46,205 |
|
|
|
46,452 |
|
|
|
47,541 |
|
|
Noninterest income |
|
1,541 |
|
|
|
1,724 |
|
|
|
1,411 |
|
|
|
1,444 |
|
|
|
1,446 |
|
|
|
6,120 |
|
|
|
5,419 |
|
|
|
4,701 |
|
|
Merger/acquisition related expenses |
|
- |
|
|
|
7 |
|
|
|
709 |
|
|
|
39 |
|
|
|
171 |
|
|
|
762 |
|
|
|
406 |
|
|
|
1,826 |
|
|
Noninterest expense |
|
12,130 |
|
|
|
10,060 |
|
|
|
9,793 |
|
|
|
9,208 |
|
|
|
8,923 |
|
|
|
41,185 |
|
|
|
34,734 |
|
|
|
32,724 |
|
|
Income before income taxes |
|
5,035 |
|
|
|
3,130 |
|
|
|
830 |
|
|
|
1,384 |
|
|
|
3,918 |
|
|
|
10,378 |
|
|
|
16,731 |
|
|
|
17,692 |
|
|
Provision for income taxes |
|
1,113 |
|
|
|
673 |
|
|
|
149 |
|
|
|
280 |
|
|
|
877 |
|
|
|
2,215 |
|
|
|
3,696 |
|
|
|
3,910 |
|
|
Net Income |
|
3,922 |
|
|
|
2,457 |
|
|
|
681 |
|
|
|
1,104 |
|
|
|
3,041 |
|
|
|
8,163 |
|
|
|
13,035 |
|
|
|
13,782 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - basic |
$ |
0.22 |
|
|
$ |
0.14 |
|
|
$ |
0.04 |
|
|
$ |
0.06 |
|
|
$ |
0.17 |
|
|
$ |
0.46 |
|
|
$ |
0.69 |
|
|
$ |
0.87 |
|
|
Earnings per share - diluted |
$ |
0.22 |
|
|
$ |
0.14 |
|
|
$ |
0.04 |
|
|
$ |
0.06 |
|
|
$ |
0.16 |
|
|
$ |
0.45 |
|
|
$ |
0.68 |
|
|
$ |
0.87 |
|
|
Book value per share |
$ |
12.30 |
|
|
$ |
12.00 |
|
|
$ |
11.84 |
|
|
$ |
11.75 |
|
|
$ |
11.61 |
|
|
$ |
12.30 |
|
|
$ |
11.61 |
|
|
$ |
10.85 |
|
|
Tangible book value per share(1) |
$ |
9.76 |
|
|
$ |
9.55 |
|
|
$ |
9.39 |
|
|
$ |
10.31 |
|
|
$ |
10.18 |
|
|
$ |
9.76 |
|
|
$ |
10.18 |
|
|
$ |
9.47 |
|
|
Ending shares outstanding |
|
17,507,103 |
|
|
|
17,786,552 |
|
|
|
17,862,554 |
|
|
|
18,055,692 |
|
|
|
18,330,058 |
|
|
|
17,507,103 |
|
|
|
18,330,058 |
|
|
|
19,311,505 |
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
17,637,540 |
|
|
|
17,847,913 |
|
|
|
18,134,607 |
|
|
|
18,255,351 |
|
|
|
18,414,393 |
|
|
|
17,937,596 |
|
|
|
19,016,808 |
|
|
|
15,812,585 |
|
|
Diluted |
|
17,661,922 |
|
|
|
17,866,822 |
|
|
|
18,157,992 |
|
|
|
18,287,064 |
|
|
|
18,460,118 |
|
|
|
17,961,258 |
|
|
|
19,063,237 |
|
|
|
15,877,633 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets(2) |
|
0.87 |
% |
|
|
0.58 |
% |
|
|
0.18 |
% |
|
|
0.35 |
% |
|
|
0.95 |
% |
|
|
0.52 |
% |
|
|
1.03 |
% |
|
|
1.12 |
% |
|
Return on average equity(2) |
|
7.26 |
% |
|
|
4.56 |
% |
|
|
1.28 |
% |
|
|
2.07 |
% |
|
|
5.67 |
% |
|
|
3.81 |
% |
|
|
6.08 |
% |
|
|
8.51 |
% |
|
Net interest margin |
|
4.10 |
% |
|
|
3.73 |
% |
|
|
3.45 |
% |
|
|
4.03 |
% |
|
|
4.05 |
% |
|
|
3.79 |
% |
|
|
4.04 |
% |
|
|
4.19 |
% |
|
Efficiency ratio (3) |
|
69.06 |
% |
|
|
67.82 |
% |
|
|
73.83 |
% |
|
|
71.36 |
% |
|
|
67.02 |
% |
|
|
70.32 |
% |
|
|
66.40 |
% |
|
|
62.83 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period End Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans |
$ |
1,304,384 |
|
|
$ |
1,283,457 |
|
|
$ |
1,249,999 |
|
|
$ |
1,039,514 |
|
|
$ |
1,029,975 |
|
|
$ |
1,304,384 |
|
|
$ |
1,029,975 |
|
|
$ |
986,040 |
|
|
Total interest-earning assets |
|
1,529,322 |
|
|
|
1,429,614 |
|
|
|
1,222,416 |
|
|
|
1,137,010 |
|
|
|
1,167,857 |
|
|
|
1,529,322 |
|
|
|
1,167,857 |
|
|
|
1,119,344 |
|
|
Goodwill |
|
42,907 |
|
|
|
41,914 |
|
|
|
41,914 |
|
|
|
24,579 |
|
|
|
24,579 |
|
|
|
42,907 |
|
|
|
24,579 |
|
|
|
24,579 |
|
|
Core deposit intangible |
|
1,513 |
|
|
|
1,677 |
|
|
|
1,856 |
|
|
|
1,431 |
|
|
|
1,610 |
|
|
|
1,513 |
|
|
|
1,610 |
|
|
|
2,085 |
|
|
Total assets |
|
1,730,045 |
|
|
|
1,771,946 |
|
|
|
1,618,960 |
|
|
|
1,263,494 |
|
|
|
1,275,076 |
|
|
|
1,729,426 |
|
|
|
1,275,076 |
|
|
|
1,258,525 |
|
|
Deposits |
|
1,485,817 |
|
|
|
1,472,780 |
|
|
|
1,338,753 |
|
|
|
982,651 |
|
|
|
992,838 |
|
|
|
1,485,817 |
|
|
|
992,838 |
|
|
|
980,427 |
|
|
Short-term debt |
|
- |
|
|
|
20,000 |
|
|
|
20,000 |
|
|
|
20,000 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
7,000 |
|
|
Long-term debt |
|
12,372 |
|
|
|
37,372 |
|
|
|
37,372 |
|
|
|
37,372 |
|
|
|
57,372 |
|
|
|
12,372 |
|
|
|
57,372 |
|
|
|
57,372 |
|
|
Shareholders' equity |
|
215,368 |
|
|
|
213,367 |
|
|
|
211,538 |
|
|
|
212,085 |
|
|
|
212,775 |
|
|
|
215,368 |
|
|
|
212,775 |
|
|
|
209,611 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Average Balances: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Loans |
$ |
1,288,138 |
|
|
$ |
1,255,027 |
|
|
$ |
1,193,985 |
|
|
$ |
1,020,630 |
|
|
$ |
1,017,750 |
|
|
$ |
1,189,894 |
|
|
$ |
1,004,051 |
|
|
$ |
987,634 |
|
|
Total interest-earning assets |
|
1,561,104 |
|
|
|
1,403,106 |
|
|
|
1,321,172 |
|
|
|
1,147,631 |
|
|
|
1,166,758 |
|
|
|
1,386,187 |
|
|
|
1,164,149 |
|
|
|
1,119,344 |
|
|
Core Deposit Intangible |
|
1,572 |
|
|
|
1,743 |
|
|
|
1,529 |
|
|
|
1,507 |
|
|
|
1,680 |
|
|
|
1,588 |
|
|
|
1,812 |
|
|
|
2,547 |
|
|
Total Assets |
|
1,784,289 |
|
|
|
1,683,174 |
|
|
|
1,520,278 |
|
|
|
1,255,943 |
|
|
|
1,272,475 |
|
|
|
1,561,865 |
|
|
|
1,268,728 |
|
|
|
1,228,576 |
|
|
Deposits |
|
1,499,162 |
|
|
|
1,399,840 |
|
|
|
1,237,343 |
|
|
|
972,162 |
|
|
|
989,721 |
|
|
|
1,278,068 |
|
|
|
981,132 |
|
|
|
989,838 |
|
|
Short-term debt |
|
17,609 |
|
|
|
20,000 |
|
|
|
20,000 |
|
|
|
12,747 |
|
|
|
- |
|
|
|
17,596 |
|
|
|
3,414 |
|
|
|
21,393 |
|
|
Long-term debt |
|
34,383 |
|
|
|
37,438 |
|
|
|
37,438 |
|
|
|
44,625 |
|
|
|
57,372 |
|
|
|
38,440 |
|
|
|
57,372 |
|
|
|
49,357 |
|
|
Shareholders' equity |
|
214,861 |
|
|
|
214,277 |
|
|
|
213,796 |
|
|
|
214,502 |
|
|
|
212,849 |
|
|
|
214,360 |
|
|
|
214,324 |
|
|
|
161,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans (4) |
$ |
14,296 |
|
|
$ |
13,739 |
|
|
$ |
14,399 |
|
|
$ |
12,820 |
|
|
$ |
12,148 |
|
|
$ |
14,296 |
|
|
$ |
12,148 |
|
|
$ |
11,635 |
|
|
Other real estate owned |
|
2,172 |
|
|
|
3,237 |
|
|
|
3,561 |
|
|
|
3,737 |
|
|
|
3,533 |
|
|
|
2,172 |
|
|
|
3,533 |
|
|
|
1,088 |
|
|
Allowance for loan losses |
|
14,108 |
|
|
|
13,561 |
|
|
|
12,054 |
|
|
|
10,586 |
|
|
|
8,324 |
|
|
|
14,108 |
|
|
|
8,324 |
|
|
|
8,669 |
|
|
Nonperforming loans (4) to period-end loans |
|
1.10 |
% |
|
|
1.07 |
% |
|
|
1.15 |
% |
|
|
1.23 |
% |
|
|
1.18 |
% |
|
|
1.10 |
% |
|
|
1.18 |
% |
|
|
1.18 |
% |
|
Allowance for loan losses to period-end loans |
|
1.08 |
% |
|
|
1.06 |
% |
|
|
0.96 |
% |
|
|
1.02 |
% |
|
|
0.81 |
% |
|
|
1.08 |
% |
|
|
0.81 |
% |
|
|
0.88 |
% |
|
Delinquency ratio (5) |
|
0.46 |
% |
|
|
0.17 |
% |
|
|
0.22 |
% |
|
|
0.43 |
% |
|
|
0.34 |
% |
|
|
0.46 |
% |
|
|
0.34 |
% |
|
|
0.19 |
% |
|
Net loan charge-offs (recoveries) to average loans (2) |
|
-0.05 |
% |
|
|
0.04 |
% |
|
|
0.16 |
% |
|
|
0.00 |
% |
|
|
0.01 |
% |
|
|
0.04 |
% |
|
|
0.08 |
% |
|
|
0.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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