WALDORF, Md., Oct. 24, 2022 (GLOBE NEWSWIRE) -- The
Community Financial Corporation (NASDAQ: TCFC) (the “Company”), the
holding company for Community Bank of the Chesapeake (the “Bank”),
today reported record net income for the three months ended
September 30, 2022 of $7.6 million, or $1.34 per diluted
common share. This compares to net income of $6.8 million, or $1.21
per diluted common share for the second quarter of 2022, and net
income of $6.4 million or $1.12 per diluted common share for the
quarter ended September 30, 2021. The Company reported record
net income for the nine months ended September 30, 2022 of
$20.7 million or diluted earnings per share of $3.65 compared to
net income for the comparable 2021 period of $19.1 million or
diluted earnings per share of $3.29.
Third
Quarter 2022
Highlights
-
Record Net Income: Net income totaled $7.6 million
for the quarter ended September 30, 2022, or $1.34 per diluted
common share compared to net income of $6.4 million or $1.12 per
diluted common share for the quarter ended September 30, 2021
and $6.8 million or $1.21 per diluted common share for the quarter
ended June 30, 2022.
-
Increasing Profitability: Return on average assets
("ROAA"), return on average common equity ("ROACE") and return on
average tangible common equity ("ROATCE") were 1.31%, 15.97% and
17.18% respectively, for the three months ended September 30,
2022 compared to 1.17%, 12.45% and 13.41% for the three months
ended September 30, 2021. ROAA, ROACE and ROATCE were 1.19%,
14.39% and 15.50% for the three months ended June 30,
2022.
-
Expanding Net Interest Margin: Net interest margin
increased to 3.47% for the three months ended September 30,
2022 from 3.25% for the second quarter of 2022. Loan and overall
interest-earning asset yields increased 33 and 41 basis points to
4.46% and 3.89% in the third quarter of 2022 from 4.13% and 3.48%
for the three months ended June 30, 2022. The Company's cost
of funds increased 20 basis points for the comparable three month
period from 0.23% to 0.43%.
-
Positioned for Rising Rates:
-
Increasing Loan Yields:
End of period contractual rates increased by 36 basis points to
4.41% at September 30, 2022 compared to June 30, 2022.
The loan portfolio is positioned for rising rates with $467.8
million or 27% of net portfolio loans scheduled to reprice monthly
or in the next three months and an additional $76.6 million or 4%
repricing in the following nine months. The Bank's effective
duration on the loan portfolio was 2.1 years at September 30,
2022.
-
Improved Deposit
Franchise: Focused efforts have
increased non-interest-bearing accounts to 30.5% of deposits at
September 30, 2022 from 21.6% of deposits at
September 30, 2021.
-
Prudent Loan Growth: Total portfolio loans
increased to $1,743.3 million, an increase of $90.8 million or
22.0% annualized, compared to the prior quarter, and $164.5 million
or 13.9% annualized, from December 31, 2021, as the Company
continued to gain market share in Virginia. The loan pipeline at
September 30, 2022 was $153.0 million, which is expected to
provide solid loan growth in the fourth quarter.
- Stable
Asset Quality: Non-accrual loans, OREO and TDRs were $6.7
million or 0.28% of total assets at September 30, 2022
compared to $6.7 million or 0.29% of total assets at June 30,
2022, and $7.2 million or 0.31% at September 30, 2021.
Management
Commentary
"Increasing net interest income and stable
expenses drove another quarter of record performance at Community
Bank in the third quarter,” stated James M. Burke, President and
Chief Executive Officer of The Community Financial Corporation.
“Our expansion into Virginia has delivered consistent loan growth
while maintaining our conservative credit culture. Increasing
revenue resulted in net interest margin and profitability
improvements which we anticipate should continue into the fourth
quarter. Market rate increases did lead to an increase in demand
deposit costs, but we are optimistic that our assets will continue
to reprice more quickly than our liabilities in the fourth quarter
driven, in part, by our leading Southern Maryland deposit
franchise.”
Results of Operations
|
|
(UNAUDITED) |
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
|
|
(dollars in thousands) |
|
|
2022 |
|
|
2021 |
|
$ Change |
|
% Change |
Interest and dividend income |
|
$ |
21,345 |
|
$ |
17,659 |
|
$ |
3,686 |
|
|
20.9 |
% |
Interest expense |
|
|
2,288 |
|
|
1,050 |
|
|
1,238 |
|
|
117.9 |
% |
Net interest income |
|
|
19,057 |
|
|
16,609 |
|
|
2,448 |
|
|
14.7 |
% |
Provision for credit
losses |
|
|
694 |
|
|
— |
|
|
694 |
|
|
0.0 |
% |
Provision for unfunded
commitments |
|
|
6 |
|
|
— |
|
|
6 |
|
|
0.0 |
% |
Noninterest income |
|
|
1,229 |
|
|
1,400 |
|
|
(171 |
) |
|
(12.2 |
)% |
Noninterest expense |
|
|
9,626 |
|
|
9,447 |
|
|
179 |
|
|
1.9 |
% |
Income before income
taxes |
|
|
9,960 |
|
|
8,562 |
|
|
1,398 |
|
|
16.3 |
% |
Income tax expense |
|
|
2,380 |
|
|
2,158 |
|
|
222 |
|
|
10.3 |
% |
Net income |
|
$ |
7,580 |
|
$ |
6,404 |
|
$ |
1,176 |
|
|
18.4 |
% |
|
|
(UNAUDITED) |
|
|
|
|
|
|
Nine Months Ended September 30, |
|
|
|
|
(dollars in thousands) |
|
|
2022 |
|
|
2021 |
|
$ Change |
|
% Change |
Interest and dividend income |
|
$ |
57,455 |
|
$ |
52,781 |
|
$ |
4,674 |
|
|
8.9 |
% |
Interest expense |
|
|
4,361 |
|
|
3,228 |
|
|
1,133 |
|
|
35.1 |
% |
Net interest income |
|
|
53,094 |
|
|
49,553 |
|
|
3,541 |
|
|
7.1 |
% |
Provision for credit
losses |
|
|
1,569 |
|
|
586 |
|
|
983 |
|
|
167.7 |
% |
Provision for unfunded
commitments |
|
|
1 |
|
|
— |
|
|
1 |
|
|
— |
% |
Noninterest income |
|
|
4,104 |
|
|
5,616 |
|
|
(1,512 |
) |
|
(26.9 |
)% |
Noninterest expense |
|
|
28,044 |
|
|
28,973 |
|
|
(929 |
) |
|
(3.2 |
)% |
Income before income
taxes |
|
|
27,584 |
|
|
25,610 |
|
|
1,974 |
|
|
7.7 |
% |
Income tax expense |
|
|
6,882 |
|
|
6,475 |
|
|
407 |
|
|
6.3 |
% |
Net income |
|
$ |
20,702 |
|
$ |
19,135 |
|
$ |
1,567 |
|
|
8.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Income
Net interest income for the comparable quarters
increased primarily from increases in interest-earning asset yields
and growth in loans and investments partially offset by increased
interest expense from higher funding costs. Net interest margin of
3.47% for the three months ended September 30,
2022 increased 19 basis points from 3.28% for the
three months ended September 30, 2021 and increased 22
basis points from 3.25% for the three months ended June 30,
2022. Net interest margin expanded during the third quarter of
2022, primarily due to average yields on loans and investment
securities (not including interest-bearing deposits) increasing to
4.46% and 2.02% for the three months ended September 30, 2022
from 4.13% and 1.52% for the three months ended June 30, 2022.
Interest income from the Company's participation in the U.S. SBA
PPP program was $0.2 million and $1.2 million for the three months
ended September 30, 2022 and September 30, 2021,
respectively and $0.3 million for the three months ended
June 30, 2022.
Net interest income increased for the nine
months ended September 30, 2022 compared to the nine months
ended September 30, 2021 due primarily to growth in investment
balances and yields and increases in loan yields from the
re-pricing of the Bank's adjustable rate portfolios as well as a
change in the mix of loans from lower yielding U.S. PPP loans to
higher yielding commercial real estate loans. Increases to net
interest income were partially offset by increased interest expense
from higher funding costs. Loan interest income increased $1.9
million to $51.1 million for the nine months
ended September 30, 2022 from $49.3 million for the
three months ended September 30, 2021. Excluding
U.S. SBA PPP interest income, for the same comparable periods loan
interest income increased $5.1 million. Net interest margin of
3.28% for the nine months ended September 30, 2022 was 10
basis points lower than the 3.38% for the nine months ended
September 30, 2021. U.S. SBA PPP loan interest positively
impacted margins by four basis points for the nine months
ended September 30, 2022 and 14 basis points for the nine
months ended September 30, 2021.
The Company’s cost of funds was 0.43% during the
third quarter of 2022 compared to 0.23% for the prior quarter and
increased from 0.21% for the three months ended September 30,
2021. The Bank's interest rate asset sensitivity has improved in
2022, as average non-interest bearing ("NIB") deposit accounts have
increased. For the third quarter of 2022 total average NIB deposits
increased to 31.2% compared to 22.8% for the comparable period in
2021. The Company’s cost of funds was 0.28% during the first nine
months of 2022 compared to 0.23% for the nine months ended
September 30, 2021.
Management anticipates that net interest margins
will expand in the fourth quarter of 2022, but at a slower rate
than the second and third quarters of 2022, as deposit betas are
likely to increase due to FOMC rate increases and more aggressive
competition for funding. The average cost of deposits increased 24
basis points from 0.20% for the month of June to 0.44% for the
month of September. Higher beta municipal relationships have been
the main driver of increased deposit rates through the third
quarter of 2022. For the same comparative periods, average
interest-earning asset yields increased 41 basis points from 3.60%
to 4.01%.
Management is optimistic that improvements in
the Bank's funding composition and asset-sensitivity in the loan
portfolio will benefit margins and profitability in an increasing
interest-rate environment.
Noninterest Income
The $0.2 million decrease in noninterest income
in the current quarter was due to no interest rate protection
referral fee income compared to $0.2 million for the three months
ended September 30, 2021. In addition, changes in interest
rates resulted in $0.2 million of unrealized losses in the third
quarter of 2022 on securities invested in a Community Reinvestment
Act mutual fund. These reductions in noninterest income for the
comparable quarters were partially offset by increases in service
charges of $0.1 million due to increased interchange fees from
increased volume. Noninterest income as a percentage of average
assets was 0.21% and 0.26%, respectively, for the three months
ended September 30, 2022 and 2021.
The $1.5 million decrease in noninterest income
for the nine months ended September 30, 2022 compared to the
same period in the prior year was principally due to reductions in
interest rate protection referral fee income of $0.9 million,
$0.6 million in gains on the sale of investment securities
sold in the first nine months of 2021 and $0.5 million in
unrealized losses on securities invested in a Community
Reinvestment Act mutual fund. These reductions for the comparable
periods were partially offset by $0.1 million in increased
service charge income and $0.4 million related to the sale of
impaired loans. In the first quarter of 2021, the Bank sold
non-accrual and classified commercial real estate and residential
mortgage loans and recognized a loss on the sale of
$0.2 million, and in the second quarter of 2022, impaired loan
sales resulted in a gain of $0.2 million. Noninterest income as a
percentage of assets was 0.24% and 0.35%, respectively, for the
nine months ended September 30, 2022 and 2021.
Noninterest
Expense
Noninterest expense of $9.6 million for the
three months ended September 30, 2022 increased $0.2 million
or 1.9% compared to the three months ended September 30, 2021.
The flat overall expense run rate for the comparable periods was
primarily due to increases of $0.2 million in data processing
expenses and $0.2 million in professional fees as well as
other operating expenses of $0.2 million, partially offset by
a decrease of $0.5 million in compensation and benefits.
Professional fees, occupancy and data processing have increased
substantially compared to the same quarter in the prior year due in
large part to increased cost of labor and materials due to
inflation. Actual compensation expenses were lower due to lower
health insurance claims and a slightly lower average FTE count than
anticipated.
In the second quarter of 2022, the Bank
increased base compensation by 4% and its minimum starting wage to
$20.00 per hour for non-executive employees to address local wage
pressures caused by inflation and to attract and retain our
employees. Management expects a $9.6-$9.8 million normalized
expense run rate in the fourth quarter.
Noninterest expense of $28.0 million decreased
$0.9 million or 3.2% for the nine months ended September 30,
2022 compared to the nine months ended September 30, 2021. The
decrease in noninterest expense for the comparable periods was
primarily due to decreases in compensation and benefits of $0.5
million, OREO expenses of $0.7 million and fraud losses of
$1.1 million.
Compensation expenses were lower for the
comparative periods due to lower health insurance claims, a lower
average FTE count than the prior year and lower deferred
compensation accruals. In addition, compensation and benefits
expense has benefited from the Company's increased use of
technology. Deferred costs for U.S. SBA PPP loans originated were
$0.3 million for the nine months ended September 30,
2021. Compensation and benefits would have increased overall 2021
noninterest expense if U.S. SBA PPP loans deferred costs were not
included in loan origination costs.
Noninterest expense in the first nine months of
2021 included a $1.3 million initial expense and subsequent
recovery of $0.2 million related to an isolated wire transfer
fraud incident. Our investigation determined that no information
systems of the Bank were compromised, and no employee fraud was
involved. Excluding the impact of the $1.1 million isolated
fraud losses and the $0.3 million in U.S. SBA PPP deferred
costs, the Company's noninterest expense was $28.2 million for
the nine months ended September 30, 2021.
OREO expenses have moderated as the Bank reduced
foreclosed assets from $1.5 million at September 30, 2021
to no OREO assets at September 30, 2022.
These decreases to noninterest expense were
partially offset by increases of $0.6 million in professional
fees, $0.3 million in data processing expenses, and
$0.2 million in occupancy expense. As noted above,
inflationary pressures have increased the cost of labor and
materials affecting these financial line items.
The Company’s efficiency ratio was 47.45% and
49.03% for the three and nine months ended September 30, 2022
compared to 52.46% and 52.52% for the three and nine months ended
September 30, 2021. The Company’s net operating expense ratio
was 1.45% and 1.38% for the three and nine months ended
September 30, 2022 compared to 1.47% for both the three and
nine months ended September 30, 2021. The efficiency and net
operating expense ratios have improved (decreased) as the Company
has improved asset quality and grown operating revenues while
controlling expense growth.
Income Tax Expense
The effective tax rate for the three months
ended September 30, 2022 was 23.90% compared to an effective
tax rate of 25.20% for the three months ended September 30,
2021. The effective tax rate for the nine months ended
September 30, 2022 was 24.95% compared to an effective tax
rate of 25.28% for the nine months ended September 30,
2021.
Balance Sheet
Assets
Total assets increased $32.3 million, or 1.4%,
to $2.36 billion at September 30, 2022 compared to total
assets of $2.33 billion at December 31, 2021, primarily due to
net loan growth. Cash decreased a net of $86.4 million and was used
to fund net loan growth of $135.7 million. Available for sale
("AFS") debt securities, which are reported at fair value,
decreased $33.3 million to $464.5 million, primarily due
to unrealized losses from rising interest rates during 2022. In
addition, deferred tax assets increased $15.7 million to $24.8
million primarily due to increases in unrealized losses of the
Bank's AFS investment portfolio related to changes in interest
rates. Deferred tax assets also increased due to the adoption of
the current expected credit losses ("CECL") accounting standard on
January 1, 2022.
During the third quarter of 2022, total net
loans increased 21.1% annualized or $86.4 million from $1,636.1
million at June 30, 2022 to $1,722.5 million at
September 30, 2022. The Company’s loan pipeline was
$153.0 million at September 30, 2022. Non-owner occupied
commercial real estate as a percentage of risk-based capital at
September 30, 2022 and December 31, 2021 were $978.2
million or 374% and $813.0 million or 331%, respectively.
Construction loans as a percentage of risk-based capital at
September 30, 2022 and December 31, 2021 were $145.4
million or 56% and $140.4 million or 57%, respectively.
Funding
Total deposits increased $70.4 million
or 3.4% (4.6% annualized) to $2,126.6 million at
September 30, 2022 compared to $2,056.2 million at
December 31, 2021. The increase included a $105.4 million
increase to transaction deposits offset by a $35.0 million decrease
to time deposits. During the first nine months of 2022,
non-interest-bearing demand deposits increased $201.7 million to
$647.4 million at September 30, 2022, representing 30.5% of
deposits, compared to 21.7% of deposits at December 31,
2021. The Company's business development efforts continue to focus
on increasing non-interest bearing and lower cost transaction
accounts.
Stockholders' Equity and Regulatory
Capital
During the nine months ended September 30,
2022, total stockholders’ equity decreased $29.0 million. The
decrease in equity was primarily due to an increase of $42.0
million in accumulated other comprehensive loss ("AOCL") related to
the Bank's AFS securities portfolio due to changes in market
interest rates. In addition, equity decreased due to common
dividends paid of $2.8 million, stock repurchases of $3.6 million
and $2.0 million for the adoption of the CECL accounting standard
on January 1, 2022. Decreases in equity were partially offset by
net income of $20.7 million and net stock related activities in
connection with stock-based compensation and ESOP activity of $0.7
million.
The Company's common equity to assets ratio
decreased to 7.59% at September 30,
2022 from 8.94% at December 31, 2021.
The Company’s ratio of tangible common equity ("TCE") to
tangible assets decreased to 7.14% at September 30,
2022 from 8.48% at December 31, 2021 (see
Non-GAAP reconciliation schedules) due primarily to increases in
AOCL. Regulatory capital was not impacted by the increase in AOCL
and Tier 1 capital to average asset ratios at the Bank and the
Company remained strong at 10.25% and 9.56% at September 30,
2022 compared to 9.95% and 9.23% at December 31, 2021.
On December 9, 2021, the Company announced its
Board of Directors approved the resumption of repurchases allowed
under the stock repurchase plan originally adopted in October 2020
(the "2020 Repurchase Plan"). The Company was permitted to
repurchase up to the 99,450 shares remaining under the 2020
Repurchase Plan using up to $4.0 million in the aggregate and
up to $1.5 million in the aggregate on a quarterly basis.
During the third quarter of 2022, the Company repurchased 13,647
shares at an average price of $37.11 per share. At
September 30, 2022, the Company had no remaining shares
available for repurchase under the 2020 Repurchase Plan.
Asset Quality
Allowance for credit losses
("ACL") and
provision for credit losses
("PCL");
Allowance for Loan Losses
("ALLL") and
provision for loan losses
("PLL")1;
Classified and Non-Performing Assets
On January 1, 2022, the Company adopted ASU
2016-13, Financial Instruments - Credit Losses (Topic
326) - Measurement of Credit Losses on Financial Instruments,
which replaced the incurred loss methodology for determining our
ACL with an expected loss methodology that is referred to as the
CECL. The measurement of expected credit losses under the CECL
methodology applies to financial assets subject to credit losses
and measured at amortized cost, and certain off-balance sheet
credit exposures. This includes, but is not limited to, loans,
leases, held-to-maturity securities, loan commitments, and
financial guarantees. In addition, ASU 2016-13 made changes to the
accounting for available-for-sale ("AFS") debt securities. Credit-
related impairments on AFS debt securities are now recognized as an
allowance for credit loss rather than a write-down of the
securities' amortized cost basis when management does not intend to
sell or believes that it is not likely that they will be required
to sell the securities prior to recovery of the securities
amortized cost basis. We adopted ASU 2016-13 using the modified
retrospective method. Results for reporting periods beginning after
January 1, 2022 are presented under ASU 2016-13 while prior period
amounts continue to be reported in accordance with previously
applicable GAAP. At adoption, the Company did not hold Held to
Maturity ("HTM") investment debt securities.
The impact at adoption was an increase to the
ACL of $2.5 million, the recording of a reserve for unfunded
commitments of $0.2 million, an increase in deferred taxes of
$0.7 million, and a decrease in retained earnings of $2.0
million.
ACL balances increased to 1.26% of portfolio
loans at September 30, 2022 compared to an ALLL of 1.17% of
portfolio loans at December 31, 2021. At and for the three
months ended September 30, 2022, the Company's ACL increased
$3.6 million or 19.6% to $22.0 million from $18.4 million at
December 31, 2021. The Company recorded a $0.7 million and
$1.6 million PCL for the three and nine months ended
September 30, 2022 compared to no PLL and $0.6 million PLL for
the three and nine months ended September 30, 2021. There were
$0.5 million in net charge-offs during the nine months ended
September 30, 2022 compared to $1.4 million in net charge-offs
for the nine months ended September 30, 2021.
Management believes that the allowance is
adequate at September 30, 2022.
Classified assets increased $0.8 million from
$5.2 million at December 31, 2021 to $6.0 million
at September 30, 2022. Management considers
classified assets to be an important measure of asset quality. The
Company's risk rating process for classified loans is an important
factor in the Company's ACL qualitative framework. Management
remains committed to expeditiously resolving non-performing or
substandard credits that are not likely to become performing or
passing credits in a reasonable timeframe.
During 2021, classified assets decreased
$17.1 million. Asset quality improved with the resolution of
$16.9 million in non-accrual and impaired loans through loan
sales and negotiated payoffs, as well as the resolution of
$3.1 million in OREO. The Company's sale of impaired loans
decreased the specific reserve, improved asset quality, and
improved several ALLL qualitative factors.
The ratio of non-accrual loans and OREO to total
portfolio loans and OREO decreased 12 basis points from
0.48% at December 31, 2021 to 0.36%
at September 30, 2022. The ratio of non-accrual loans,
OREO and TDRs to total assets decreased seven basis
points from 0.35% at December 31, 2021 to 0.28%
at September 30, 2022.
Non-accrual loans decreased $1.3 million from
$7.6 million at December 31, 2021 to $6.3 million at
September 30, 2022. There were no OREO balances at
September 30, 2022 and December 31, 2021.
About The Community Financial
Corporation - Headquartered in Waldorf, MD, The Community
Financial Corporation is the bank holding company for Community
Bank of the Chesapeake, a full-service commercial bank with assets
of approximately $2.4 billion. Through its branch offices and
commercial lending centers, Community Bank of the Chesapeake offers
a broad range of financial products and services to individuals and
businesses. The Company’s branches are located at its main office
in Waldorf, Maryland, and branch offices in Bryans Road, Dunkirk,
Leonardtown, La Plata, Charlotte Hall, Prince Frederick, Lusby and
California, Maryland; and Fredericksburg - Downtown and
Fredericksburg - Harrison Crossing, Virginia. More information
about Community Bank of the Chesapeake can be found at
www.cbtc.com.
Use of non-GAAP Financial
Measures - Statements included in this press release
include non-GAAP financial measures and should be read along with
the accompanying tables, which provide a reconciliation of non-GAAP
financial measures to GAAP financial measures. The Company’s
management uses these non-GAAP financial measures, and believes
that non-GAAP financial measures provide additional useful
information that allows readers to evaluate the ongoing performance
of the Company. Non-GAAP financial measures should not be
considered as an alternative to any measure of performance or
financial condition as promulgated under GAAP, and investors should
consider the Company’s performance and financial condition as
reported under GAAP and all other relevant information when
assessing the performance or financial condition of the Company.
Non-GAAP financial measures have limitations as analytical tools,
and investors should not consider them in isolation or as a
substitute for analysis of the results or financial condition as
reported under GAAP.
Forward-looking Statements -
Certain statements contained in this news release may not be based
on historical facts and are “forward-looking statements” within the
meaning Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements can generally be identified by the fact
that they do not relate strictly to historical or current facts.
They often include words or phrases such as “is optimistic,”
“project,” “believe,” “expect,” “anticipate,” “estimate”, “assume”
and “intend” or future or conditional verbs such as “will,”
“would,” “should,” “could” or “may.” Statements in this release
that are not strictly historical are forward-looking and are based
upon current expectations that may differ materially from actual
results. These forward-looking statements include, without
limitation: (i) those relating to the Company’s and the Bank’s
future growth and management’s outlook or expectations for revenue,
assets, asset quality, profitability, business prospects, net
interest margin, non-interest revenue, allowance for loan losses,
the level of credit losses from lending, liquidity levels, capital
levels, or future financial or business performance strategies or
expectations; (ii) any statements of the plans and objectives of
management for future operations products or services, including
the expected benefits from, and/or the execution of integration
plans relating to any acquisition we have undertaken or that we
undertake in the future; (iii) plans and cost savings regarding
branch closings or consolidation; (iv) projections related to
certain financial metrics, including with respect to the quarterly
expense run rate; (v) expected benefits of programs we introduce,
including residential mortgage programs and retail and commercial
credit card programs; and (vi) any statement of expectation or
belief, and any assumptions underlying the foregoing. These
forward-looking statements express management’s current
expectations or forecasts of future events, results and conditions,
and by their nature are subject to and involve risks and
uncertainties that could cause actual results to differ materially
from those anticipated by the statements made herein. Factors that
might cause actual results to differ materially from those made in
such statements include, but are not limited to: (i) risks,
uncertainties and other factors relating to the COVID-19 pandemic
(including the length of time that the pandemic continues; the
ability of states and local governments to successfully implement
the lifting of restrictions on movement and the potential
imposition of further restrictions on movement and travel in the
future, the effect of the pandemic on the general economy and on
the businesses of our borrowers and their ability to make payments
on their obligations; (ii) the remedial actions and stimulus
measures adopted by federal, state and local governments, and the
inability of employees to work due to illness, quarantine, or
government mandates); (iii) the impacts related to or resulting
from Russia’s military action in Ukraine, including the broader
impacts to financial markets and the global macroeconomic and
geopolitical environments; (iv) assumptions that interest-earning
assets will reprice faster than interest-bearing liabilities and
the Bank’s ability to maintain its current favorable funding mix;
(v) the synergies and other expected financial benefits from any
acquisition that we have undertaken or may undertake in the future
may or may not be realized within the expected time frames; (vi)
the impact of our adoption of the CECL standard; (vii) limitations
on our ability to declare and pay dividends or engage in share
repurchases; (viii) changes in the Company's or the Bank's
strategy, costs or difficulties related to integration matters
might be greater than expected; (ix) availability of and costs
associated with obtaining adequate and timely sources of liquidity;
(x) the ability to maintain credit quality; (xi) general economic
trends and conditions, including inflation and its impacts; (xii)
changes in interest rates; (xiii) loss of deposits and loan demand
to other financial institutions; (xiv) substantial changes in
financial markets; (xv) changes in real estate value and the real
estate market; (xxi) regulatory changes; (xvii) the impact of
government shutdowns or sequestration; (xviii) the possibility of
unforeseen events affecting the industry generally; (xix) the
uncertainties associated with newly developed or acquired
operations; (xx) the outcome of pending or threatened litigation,
or of matters before regulatory agencies, whether currently
existing or commencing in the future; (xxi) market disruptions and
other effects of terrorist activities; and (xxii) the matters
described in “Item 1A Risk Factors” in the Company’s Annual Report
on Form 10-K for the Year Ended December 31, 2021, and in its
other Reports filed with the Securities and Exchange Commission
(the “SEC”). The Company’s forward-looking statements may also be
subject to other risks and uncertainties, including those that it
may discuss elsewhere in this news release or in its filings with
the SEC, accessible on the SEC’s Web site at www.sec.gov. The Company
undertakes no obligation to update these forward-looking statements
to reflect events or circumstances after the date hereof or to
reflect the occurrence of unforeseen events, except as required
under the rules and regulations of the SEC.
You are cautioned not to place undue reliance on
the forward-looking statements contained in this document in that
actual results could differ materially from those indicated in such
forward-looking statements, due to a variety of factors. Any
forward-looking statement speaks only as of the date of this new
release, and the Company undertakes no obligation to update these
forward-looking statements to reflect events or circumstances that
occur after the date of this new release.
Data is unaudited as of September 30, 2022.
This selected information should be read in conjunction with the
financial statements and notes included in the Company's Annual
Report on Form 10-K for the year ended December 31, 2021.
CONTACTS:
James M. Burke, Chief Executive Officer
Todd L. Capitani, Chief Financial Officer
(888) 745-2265
|
SUPPLEMENTAL QUARTERLY FINANCIAL DATA
CONSOLIDATED INCOME STATEMENT
(UNAUDITED) |
|
|
|
Three Months Ended |
(dollars in thousands) |
|
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
Interest and Dividend Income |
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
18,735 |
|
|
$ |
16,772 |
|
|
$ |
15,610 |
|
|
$ |
16,222 |
|
|
$ |
16,342 |
|
Interest and dividends on securities |
|
|
2,454 |
|
|
|
1,924 |
|
|
|
1,666 |
|
|
|
1,531 |
|
|
|
1,296 |
|
Interest on deposits with banks |
|
|
156 |
|
|
|
78 |
|
|
|
60 |
|
|
|
25 |
|
|
|
21 |
|
Total Interest and
Dividend Income |
|
|
21,345 |
|
|
|
18,774 |
|
|
|
17,336 |
|
|
|
17,778 |
|
|
|
17,659 |
|
Interest
Expense |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
1,850 |
|
|
|
819 |
|
|
|
513 |
|
|
|
565 |
|
|
|
594 |
|
Short-term borrowings |
|
|
52 |
|
|
|
16 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Long-term debt |
|
|
386 |
|
|
|
371 |
|
|
|
354 |
|
|
|
332 |
|
|
|
456 |
|
Total Interest
Expense |
|
|
2,288 |
|
|
|
1,206 |
|
|
|
867 |
|
|
|
897 |
|
|
|
1,050 |
|
Net Interest Income
("NII") |
|
|
19,057 |
|
|
|
17,568 |
|
|
|
16,469 |
|
|
|
16,881 |
|
|
|
16,609 |
|
Provision for credit losses |
|
|
694 |
|
|
|
425 |
|
|
|
450 |
|
|
|
— |
|
|
|
— |
|
Provision (recovery) for unfunded commitments |
|
|
6 |
|
|
|
26 |
|
|
|
(31 |
) |
|
|
— |
|
|
|
— |
|
NII After Provision
For Credit Losses |
|
|
18,357 |
|
|
|
17,117 |
|
|
|
16,050 |
|
|
|
16,881 |
|
|
|
16,609 |
|
Noninterest
Income |
|
|
|
|
|
|
|
|
|
|
Loan appraisal, credit, and misc. charges |
|
|
65 |
|
|
|
44 |
|
|
|
176 |
|
|
|
257 |
|
|
|
29 |
|
Unrealized losses on equity securities |
|
|
(187 |
) |
|
|
(155 |
) |
|
|
(222 |
) |
|
|
(45 |
) |
|
|
(22 |
) |
Loss on premises and equipment held for sale |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5 |
) |
|
|
(20 |
) |
Income from bank owned life insurance |
|
|
220 |
|
|
|
217 |
|
|
|
214 |
|
|
|
219 |
|
|
|
220 |
|
Service charges |
|
|
1,130 |
|
|
|
1,108 |
|
|
|
926 |
|
|
|
1,235 |
|
|
|
987 |
|
Referral fee income |
|
|
— |
|
|
|
— |
|
|
|
361 |
|
|
|
574 |
|
|
|
176 |
|
Net gains (losses) on sale of loans originated for sale |
|
|
1 |
|
|
|
1 |
|
|
|
(4 |
) |
|
|
55 |
|
|
|
30 |
|
Gains on sale of loans |
|
|
— |
|
|
|
209 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total Noninterest
Income |
|
|
1,229 |
|
|
|
1,424 |
|
|
|
1,451 |
|
|
|
2,290 |
|
|
|
1,400 |
|
Noninterest
Expense |
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
5,116 |
|
|
|
5,051 |
|
|
|
5,055 |
|
|
|
5,265 |
|
|
|
5,650 |
|
OREO valuation allowance and expenses |
|
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
767 |
|
|
|
20 |
|
Sub
Total |
|
|
5,116 |
|
|
|
5,051 |
|
|
|
5,061 |
|
|
|
6,032 |
|
|
|
5,670 |
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
Occupancy expense |
|
|
826 |
|
|
|
820 |
|
|
|
732 |
|
|
|
656 |
|
|
|
731 |
|
Advertising |
|
|
149 |
|
|
|
159 |
|
|
|
64 |
|
|
|
128 |
|
|
|
145 |
|
Data processing expense |
|
|
1,062 |
|
|
|
1,008 |
|
|
|
1,007 |
|
|
|
1,006 |
|
|
|
840 |
|
Professional fees |
|
|
923 |
|
|
|
845 |
|
|
|
731 |
|
|
|
937 |
|
|
|
676 |
|
Depreciation of premises and equipment |
|
|
177 |
|
|
|
150 |
|
|
|
149 |
|
|
|
139 |
|
|
|
137 |
|
FDIC Insurance |
|
|
160 |
|
|
|
177 |
|
|
|
179 |
|
|
|
90 |
|
|
|
120 |
|
Core deposit intangible amortization |
|
|
97 |
|
|
|
102 |
|
|
|
109 |
|
|
|
115 |
|
|
|
121 |
|
Fraud losses |
|
|
37 |
|
|
|
30 |
|
|
|
40 |
|
|
|
16 |
|
|
|
132 |
|
Other expenses |
|
|
1,079 |
|
|
|
996 |
|
|
|
1,008 |
|
|
|
1,060 |
|
|
|
875 |
|
Total Operating
Expenses |
|
|
4,510 |
|
|
|
4,287 |
|
|
|
4,019 |
|
|
|
4,147 |
|
|
|
3,777 |
|
Total Noninterest
Expense |
|
|
9,626 |
|
|
|
9,338 |
|
|
|
9,080 |
|
|
|
10,179 |
|
|
|
9,447 |
|
Income before income taxes |
|
|
9,960 |
|
|
|
9,203 |
|
|
|
8,421 |
|
|
|
8,992 |
|
|
|
8,562 |
|
Income tax expense |
|
|
2,380 |
|
|
|
2,369 |
|
|
|
2,133 |
|
|
|
2,241 |
|
|
|
2,158 |
|
Net
Income |
|
$ |
7,580 |
|
|
$ |
6,834 |
|
|
$ |
6,288 |
|
|
$ |
6,751 |
|
|
$ |
6,404 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL QUARTERLY FINANCIAL DATA -
Continued
CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
|
(dollars in thousands, except per share amounts) |
|
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
18,008 |
|
|
$ |
16,164 |
|
|
$ |
80,702 |
|
|
$ |
108,990 |
|
|
$ |
112,314 |
|
Federal funds sold |
|
|
20,325 |
|
|
|
37,320 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Interest-bearing deposits with
banks |
|
|
14,970 |
|
|
|
34,659 |
|
|
|
32,460 |
|
|
|
30,664 |
|
|
|
34,929 |
|
Securities available for sale
("AFS"), at fair value |
|
|
464,502 |
|
|
|
485,456 |
|
|
|
507,527 |
|
|
|
497,839 |
|
|
|
456,664 |
|
Equity securities carried at
fair value through income |
|
|
4,254 |
|
|
|
4,423 |
|
|
|
4,562 |
|
|
|
4,772 |
|
|
|
4,805 |
|
Non-marketable equity
securities held in other financial institutions |
|
|
207 |
|
|
|
207 |
|
|
|
207 |
|
|
|
207 |
|
|
|
207 |
|
Federal Home Loan Bank
("FHLB") stock - at cost |
|
|
1,226 |
|
|
|
1,234 |
|
|
|
1,685 |
|
|
|
1,472 |
|
|
|
1,472 |
|
Loans held for sale |
|
|
— |
|
|
|
— |
|
|
|
373 |
|
|
|
— |
|
|
|
— |
|
Net U.S. Small Business
Administration ("SBA") Paycheck Protection ("PPP") Loans |
|
|
1,211 |
|
|
|
5,022 |
|
|
|
15,279 |
|
|
|
26,398 |
|
|
|
54,807 |
|
Portfolio Loans Receivable net
of allowance for credit losses of $22,027, $21,404, $21,382,
$18,417, and $18,579 |
|
|
1,721,250 |
|
|
|
1,631,055 |
|
|
|
1,608,156 |
|
|
|
1,560,393 |
|
|
|
1,514,837 |
|
Net Loans |
|
|
1,722,461 |
|
|
|
1,636,077 |
|
|
|
1,623,435 |
|
|
|
1,586,791 |
|
|
|
1,569,644 |
|
Goodwill |
|
|
10,835 |
|
|
|
10,835 |
|
|
|
10,835 |
|
|
|
10,835 |
|
|
|
10,835 |
|
Premises and equipment,
net |
|
|
21,626 |
|
|
|
21,802 |
|
|
|
21,304 |
|
|
|
21,427 |
|
|
|
21,795 |
|
Other real estate owned
("OREO") |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,536 |
|
Accrued interest
receivable |
|
|
6,791 |
|
|
|
6,099 |
|
|
|
5,389 |
|
|
|
5,588 |
|
|
|
6,045 |
|
Investment in bank owned life
insurance |
|
|
39,583 |
|
|
|
39,363 |
|
|
|
39,145 |
|
|
|
38,932 |
|
|
|
38,713 |
|
Core deposit intangible |
|
|
725 |
|
|
|
821 |
|
|
|
924 |
|
|
|
1,032 |
|
|
|
1,147 |
|
Net deferred tax assets |
|
|
24,755 |
|
|
|
20,223 |
|
|
|
15,523 |
|
|
|
9,033 |
|
|
|
8,790 |
|
Right of use assets -
operating leases |
|
|
6,022 |
|
|
|
6,123 |
|
|
|
6,033 |
|
|
|
6,124 |
|
|
|
6,215 |
|
Other assets |
|
|
3,331 |
|
|
|
2,708 |
|
|
|
1,819 |
|
|
|
3,600 |
|
|
|
3,581 |
|
Total
Assets |
|
$ |
2,359,621 |
|
|
$ |
2,323,514 |
|
|
$ |
2,351,923 |
|
|
$ |
2,327,306 |
|
|
$ |
2,278,692 |
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
|
$ |
647,432 |
|
|
$ |
635,649 |
|
|
$ |
644,385 |
|
|
$ |
445,778 |
|
|
$ |
432,606 |
|
Interest-bearing deposits |
|
|
1,479,125 |
|
|
|
1,449,727 |
|
|
|
1,450,698 |
|
|
|
1,610,386 |
|
|
|
1,572,001 |
|
Total deposits |
|
|
2,126,557 |
|
|
|
2,085,376 |
|
|
|
2,095,083 |
|
|
|
2,056,164 |
|
|
|
2,004,607 |
|
Long-term debt |
|
|
— |
|
|
|
— |
|
|
|
12,213 |
|
|
|
12,231 |
|
|
|
12,249 |
|
Guaranteed preferred
beneficial interest in junior subordinated debentures
("TRUPs") |
|
|
12,000 |
|
|
|
12,000 |
|
|
|
12,000 |
|
|
|
12,000 |
|
|
|
12,000 |
|
Subordinated notes -
4.75% |
|
|
19,552 |
|
|
|
19,538 |
|
|
|
19,524 |
|
|
|
19,510 |
|
|
|
19,496 |
|
Lease liabilities - operating
leases |
|
|
6,288 |
|
|
|
6,372 |
|
|
|
6,266 |
|
|
|
6,343 |
|
|
|
6,418 |
|
Accrued expenses and other
liabilities |
|
|
16,070 |
|
|
|
15,357 |
|
|
|
13,697 |
|
|
|
12,925 |
|
|
|
19,794 |
|
Total
Liabilities |
|
|
2,180,467 |
|
|
|
2,138,643 |
|
|
|
2,158,783 |
|
|
|
2,119,173 |
|
|
|
2,074,564 |
|
Stockholders'
Equity |
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
56 |
|
|
|
56 |
|
|
|
57 |
|
|
|
57 |
|
|
|
57 |
|
Additional paid in
capital |
|
|
97,712 |
|
|
|
97,455 |
|
|
|
97,189 |
|
|
|
96,896 |
|
|
|
96,649 |
|
Retained earnings |
|
|
125,608 |
|
|
|
119,523 |
|
|
|
115,179 |
|
|
|
113,448 |
|
|
|
107,890 |
|
Accumulated other
comprehensive losses |
|
|
(43,906 |
) |
|
|
(31,847 |
) |
|
|
(18,969 |
) |
|
|
(1,952 |
) |
|
|
(9 |
) |
Unearned ESOP shares |
|
|
(316 |
) |
|
|
(316 |
) |
|
|
(316 |
) |
|
|
(316 |
) |
|
|
(459 |
) |
Total Stockholders'
Equity |
|
|
179,154 |
|
|
|
184,871 |
|
|
|
193,140 |
|
|
|
208,133 |
|
|
|
204,128 |
|
Total Liabilities and
Stockholders' Equity |
|
$ |
2,359,621 |
|
|
$ |
2,323,514 |
|
|
$ |
2,351,923 |
|
|
$ |
2,327,306 |
|
|
$ |
2,278,692 |
|
Common shares issued and
outstanding |
|
|
5,644,186 |
|
|
|
5,649,729 |
|
|
|
5,686,799 |
|
|
|
5,718,528 |
|
|
|
5,724,011 |
|
SUPPLEMENTAL QUARTERLY FINANCIAL DATA - Continued
SELECTED FINANCIAL INFORMATION AND RATIOS
(UNAUDITED) |
|
|
Three Months Ended |
(dollars in thousands, except per share amounts) |
|
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
KEY OPERATING RATIOS |
|
|
|
|
|
|
|
|
|
|
Return on average assets ("ROAA") |
|
|
1.31 |
% |
|
|
1.19 |
% |
|
|
1.08 |
% |
|
|
1.18 |
% |
|
|
1.17 |
% |
Pre-tax Pre-Provision
ROAA** |
|
|
1.84 |
|
|
|
1.68 |
|
|
|
1.53 |
|
|
|
1.57 |
|
|
|
1.57 |
|
Return on average common
equity ("ROACE") |
|
|
15.97 |
|
|
|
14.39 |
|
|
|
12.30 |
|
|
|
13.00 |
|
|
|
12.45 |
|
Pre-tax Pre-Provision
ROACE** |
|
|
22.46 |
|
|
|
20.33 |
|
|
|
17.35 |
|
|
|
17.31 |
|
|
|
16.65 |
|
Return on Average Tangible
Common Equity ("ROATCE")** |
|
|
17.18 |
|
|
|
15.50 |
|
|
|
13.22 |
|
|
|
13.97 |
|
|
|
13.41 |
|
Average total equity to
average total assets |
|
|
8.17 |
|
|
|
8.28 |
|
|
|
8.79 |
|
|
|
9.06 |
|
|
|
9.40 |
|
Interest rate spread |
|
|
3.26 |
|
|
|
3.14 |
|
|
|
3.05 |
|
|
|
3.17 |
|
|
|
3.22 |
|
Net interest margin |
|
|
3.47 |
|
|
|
3.25 |
|
|
|
3.12 |
|
|
|
3.22 |
|
|
|
3.28 |
|
Cost of funds |
|
|
0.43 |
|
|
|
0.23 |
|
|
|
0.17 |
|
|
|
0.17 |
|
|
|
0.21 |
|
Cost of deposits |
|
|
0.36 |
|
|
|
0.16 |
|
|
|
0.10 |
|
|
|
0.11 |
|
|
|
0.12 |
|
Cost of debt |
|
|
4.40 |
|
|
|
3.81 |
|
|
|
3.24 |
|
|
|
3.04 |
|
|
|
3.19 |
|
Efficiency ratio |
|
|
47.45 |
|
|
|
49.17 |
|
|
|
50.67 |
|
|
|
53.10 |
|
|
|
52.46 |
|
Non-interest income to average
assets |
|
|
0.21 |
|
|
|
0.25 |
|
|
|
0.25 |
|
|
|
0.40 |
|
|
|
0.26 |
|
Non-interest expense to
average assets |
|
|
1.66 |
|
|
|
1.63 |
|
|
|
1.56 |
|
|
|
1.78 |
|
|
|
1.73 |
|
Net operating expense to
average assets |
|
|
1.45 |
|
|
|
1.38 |
|
|
|
1.31 |
|
|
|
1.38 |
|
|
|
1.47 |
|
Average interest-earning
assets to average interest-bearing liabilities |
|
|
149.96 |
|
|
|
150.34 |
|
|
|
141.56 |
|
|
|
129.68 |
|
|
|
132.54 |
|
Net charge-offs (recoveries)
to average portfolio loans |
|
|
0.02 |
|
|
|
0.10 |
|
|
|
0.00 |
|
|
|
0.04 |
|
|
|
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
|
COMMON SHARE
DATA |
|
|
|
|
|
|
|
|
|
|
Basic net income per common
share |
|
$ |
1.34 |
|
|
$ |
1.21 |
|
|
$ |
1.11 |
|
|
$ |
1.18 |
|
|
$ |
1.12 |
|
Diluted net income per common
share |
|
|
1.34 |
|
|
|
1.21 |
|
|
|
1.10 |
|
|
|
1.18 |
|
|
|
1.12 |
|
Cash dividends paid per common
share |
|
|
0.175 |
|
|
|
0.175 |
|
|
|
0.175 |
|
|
|
0.15 |
|
|
|
0.15 |
|
Basic - weighted average
common shares outstanding |
|
|
5,636,640 |
|
|
|
5,647,821 |
|
|
|
5,688,221 |
|
|
|
5,711,746 |
|
|
|
5,709,814 |
|
Diluted - weighted average
common shares outstanding |
|
|
5,644,822 |
|
|
|
5,657,733 |
|
|
|
5,699,038 |
|
|
|
5,723,011 |
|
|
|
5,720,001 |
|
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,359,621 |
|
|
$ |
2,323,514 |
|
|
$ |
2,351,923 |
|
|
$ |
2,327,306 |
|
|
$ |
2,278,692 |
|
Total portfolio
loans(1) |
|
|
1,743,277 |
|
|
|
1,652,459 |
|
|
|
1,629,538 |
|
|
|
1,578,810 |
|
|
|
1,533,416 |
|
Classified assets |
|
|
5,967 |
|
|
|
6,062 |
|
|
|
4,745 |
|
|
|
5,211 |
|
|
|
6,663 |
|
Allowance for credit
losses |
|
|
22,027 |
|
|
|
21,404 |
|
|
|
21,382 |
|
|
|
18,417 |
|
|
|
18,579 |
|
|
|
|
|
|
|
|
|
|
|
|
Past due loans - 31 to 89
days |
|
|
713 |
|
|
|
900 |
|
|
|
386 |
|
|
|
568 |
|
|
|
189 |
|
Past due loans >=90
days |
|
|
428 |
|
|
|
147 |
|
|
|
1,233 |
|
|
|
961 |
|
|
|
1,400 |
|
Total past due
loans(2) |
|
|
1,141 |
|
|
|
1,047 |
|
|
|
1,619 |
|
|
|
1,529 |
|
|
|
1,589 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual
loans(3) |
|
|
6,290 |
|
|
|
6,235 |
|
|
|
7,465 |
|
|
|
7,631 |
|
|
|
5,160 |
|
Accruing troubled debt
restructures ("TDRs") |
|
|
433 |
|
|
|
439 |
|
|
|
442 |
|
|
|
447 |
|
|
|
455 |
|
Other real estate owned
("OREO") |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,536 |
|
Non-accrual loans, OREO and TDRs |
|
$ |
6,723 |
|
|
$ |
6,674 |
|
|
$ |
7,907 |
|
|
$ |
8,078 |
|
|
$ |
7,151 |
|
** Non-GAAP financial measure. See
reconciliation of GAAP and NON-GAAP measures.
____________________________________
(1) Portfolio loans include all loan
portfolios except the U.S. SBA PPP loan portfolio. Asset quality
ratios for loans exclude U.S. SBA PPP loans. December 31, 2021 and
September 30, 2021 reported balance are shown net of deferred costs
and fees to conform with the current period's presentation.
(2) Delinquency excludes Purchase Credit Impaired ("PCI")
loans for December 31, 2021 and September 30, 2021.
(3) Non-accrual loans include all loans that are 90 days or
more delinquent and loans that are non-accrual due to the operating
results or cash flows of a customer. Non-accrual loans can include
loans that are current with all loan payments. At
September 30, 2022 and December 31, 2021, the Company had
current non-accrual loans of $5.7 million and $6.7 million,
respectively.
|
SUPPLEMENTAL QUARTERLY FINANCIAL DATA - Continued
SELECTED FINANCIAL INFORMATION AND RATIOS
(UNAUDITED) |
|
|
Three Months Ended |
(dollars in thousands, except per share amounts) |
|
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
ASSET QUALITY RATIOS(1) |
|
|
|
|
|
|
|
|
|
|
Classified assets to total assets |
|
|
0.25 |
% |
|
|
0.26 |
% |
|
|
0.20 |
% |
|
|
0.22 |
% |
|
|
0.29 |
% |
Classified assets to
risk-based capital |
|
|
2.25 |
|
|
|
2.35 |
|
|
|
1.87 |
|
|
|
2.10 |
|
|
|
2.75 |
|
Allowance for credit losses to
total portfolio loans |
|
|
1.26 |
|
|
|
1.30 |
|
|
|
1.31 |
|
|
|
1.17 |
|
|
|
1.21 |
|
Allowance for credit losses to
non-accrual loans |
|
|
350.19 |
|
|
|
343.29 |
|
|
|
286.43 |
|
|
|
241.34 |
|
|
|
360.06 |
|
Past due loans - 31 to 89 days
to total portfolio loans |
|
|
0.04 |
|
|
|
0.05 |
|
|
|
0.02 |
|
|
|
0.04 |
|
|
|
0.01 |
|
Past due loans >=90 days to
total portfolio loans |
|
|
0.02 |
|
|
|
0.01 |
|
|
|
0.08 |
|
|
|
0.06 |
|
|
|
0.09 |
|
Total past due (delinquency)
to total portfolio loans |
|
|
0.07 |
|
|
|
0.06 |
|
|
|
0.10 |
|
|
|
0.10 |
|
|
|
0.10 |
|
Non-accrual loans to total
portfolio loans |
|
|
0.36 |
|
|
|
0.38 |
|
|
|
0.46 |
|
|
|
0.48 |
|
|
|
0.34 |
|
Non-accrual loans and TDRs to
total portfolio loans |
|
|
0.39 |
|
|
|
0.40 |
|
|
|
0.49 |
|
|
|
0.51 |
|
|
|
0.37 |
|
Non-accrual loans and OREO to
total portfolio assets |
|
|
0.27 |
|
|
|
0.27 |
|
|
|
0.32 |
|
|
|
0.33 |
|
|
|
0.29 |
|
Non-accrual loans and OREO to
total portfolio loans and OREO |
|
|
0.36 |
|
|
|
0.38 |
|
|
|
0.46 |
|
|
|
0.48 |
|
|
|
0.44 |
|
Non-accrual loans, OREO and
TDRs to total assets |
|
|
0.28 |
|
|
|
0.29 |
|
|
|
0.34 |
|
|
|
0.35 |
|
|
|
0.31 |
|
|
|
|
|
|
|
|
|
|
|
|
COMMON SHARE
DATA |
|
|
|
|
|
|
|
|
|
|
Book value per common
share |
|
$ |
31.74 |
|
|
$ |
32.72 |
|
|
$ |
33.96 |
|
|
$ |
36.40 |
|
|
$ |
35.66 |
|
Tangible book value per common
share** |
|
|
29.69 |
|
|
|
30.66 |
|
|
|
31.90 |
|
|
|
34.32 |
|
|
|
33.57 |
|
Common shares outstanding at
end of period |
|
|
5,644,186 |
|
|
|
5,649,729 |
|
|
|
5,686,799 |
|
|
|
5,718,528 |
|
|
|
5,724,011 |
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
DATA |
|
|
|
|
|
|
|
|
|
|
Full-time equivalent
employees |
|
|
199 |
|
|
|
190 |
|
|
|
191 |
|
|
|
186 |
|
|
|
196 |
|
Branches |
|
|
12 |
|
|
|
12 |
|
|
|
11 |
|
|
|
11 |
|
|
|
11 |
|
Loan Production Offices |
|
|
4 |
|
|
|
4 |
|
|
|
4 |
|
|
|
4 |
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
RATIOS |
|
|
|
|
|
|
|
|
|
|
Tier 1 capital to average
assets |
|
|
9.56 |
% |
|
|
9.42 |
% |
|
|
9.17 |
% |
|
|
9.23 |
% |
|
|
9.41 |
% |
Tier 1 common capital to
risk-weighted assets |
|
|
11.40 |
|
|
|
11.66 |
|
|
|
11.58 |
|
|
|
11.92 |
|
|
|
11.89 |
|
Tier 1 capital to
risk-weighted assets |
|
|
12.05 |
|
|
|
12.34 |
|
|
|
12.28 |
|
|
|
12.64 |
|
|
|
12.64 |
|
Total risk-based capital to
risk-weighted assets |
|
|
14.30 |
|
|
|
14.68 |
|
|
|
14.65 |
|
|
|
14.92 |
|
|
|
14.99 |
|
Common equity to assets |
|
|
7.59 |
|
|
|
7.96 |
|
|
|
8.21 |
|
|
|
8.94 |
|
|
|
8.96 |
|
Tangible common equity to
tangible assets ** |
|
|
7.14 |
|
|
|
7.49 |
|
|
|
7.75 |
|
|
|
8.48 |
|
|
|
8.48 |
|
** Non-GAAP financial measure. See
reconciliation of GAAP and NON-GAAP measures.
____________________________________
(1) Asset quality ratios are calculated
using total portfolio loans. Portfolio loans include all loan
portfolios except the U.S. SBA PPP loan portfolio.
|
SUPPLEMENTAL YEAR TO DATE FINANCIAL DATA
CONSOLIDATED INCOME STATEMENT
(UNAUDITED) |
|
|
|
Nine Months Ended September 30, |
(dollars in thousands) |
|
|
2022 |
|
|
|
2021 |
|
Interest and Dividend Income |
|
|
|
|
Loans, including fees |
|
$ |
51,117 |
|
|
$ |
49,254 |
|
Interest and dividends on securities |
|
|
6,044 |
|
|
|
3,461 |
|
Interest on deposits with banks |
|
|
294 |
|
|
|
66 |
|
Total Interest and
Dividend Income |
|
|
57,455 |
|
|
|
52,781 |
|
Interest
Expense |
|
|
|
|
Deposits |
|
|
3,182 |
|
|
|
2,036 |
|
Short-term borrowings |
|
|
68 |
|
|
|
— |
|
Long-term debt |
|
|
1,111 |
|
|
|
1,192 |
|
Total Interest
Expense |
|
|
4,361 |
|
|
|
3,228 |
|
Net Interest Income
("NII") |
|
|
53,094 |
|
|
|
49,553 |
|
Provision for credit losses |
|
|
1,569 |
|
|
|
586 |
|
Provision for unfunded commitments |
|
|
1 |
|
|
|
— |
|
NII After Provision
for Credit Losses |
|
|
51,524 |
|
|
|
48,967 |
|
Noninterest
Income |
|
|
|
|
Loan appraisal, credit, and misc. charges |
|
|
285 |
|
|
|
271 |
|
Gain on sale of assets |
|
|
— |
|
|
|
68 |
|
Net gains on sale of investment securities |
|
|
— |
|
|
|
586 |
|
Unrealized losses on equity securities |
|
|
(564 |
) |
|
|
(94 |
) |
Loss on premises and equipment held for sale |
|
|
— |
|
|
|
(20 |
) |
Income from bank owned life insurance |
|
|
651 |
|
|
|
652 |
|
Service charges |
|
|
3,164 |
|
|
|
3,066 |
|
Referral fee income |
|
|
361 |
|
|
|
1,248 |
|
Net (losses) gains on sale of loans originated for sale |
|
|
(2 |
) |
|
|
30 |
|
Gains (losses) on sale of loans |
|
|
209 |
|
|
|
(191 |
) |
Total Noninterest
Income |
|
|
4,104 |
|
|
|
5,616 |
|
Noninterest
Expense |
|
|
|
|
Compensation and benefits |
|
|
15,222 |
|
|
|
15,770 |
|
OREO valuation allowance and expenses |
|
|
6 |
|
|
|
689 |
|
Sub-total |
|
|
15,228 |
|
|
|
16,459 |
|
Operating
Expense |
|
|
|
|
Occupancy expense |
|
|
2,378 |
|
|
|
2,180 |
|
Advertising |
|
|
372 |
|
|
|
372 |
|
Data processing expense |
|
|
3,077 |
|
|
|
2,766 |
|
Professional fees |
|
|
2,499 |
|
|
|
1,920 |
|
Depreciation of premises and equipment |
|
|
476 |
|
|
|
419 |
|
FDIC Insurance |
|
|
516 |
|
|
|
512 |
|
Core deposit intangible amortization |
|
|
308 |
|
|
|
380 |
|
Fraud losses |
|
|
107 |
|
|
|
1,243 |
|
Other expenses |
|
|
3,083 |
|
|
|
2,722 |
|
Total Operating
Expense |
|
|
12,816 |
|
|
|
12,514 |
|
Total Noninterest
Expense |
|
|
28,044 |
|
|
|
28,973 |
|
Income before income
taxes |
|
|
27,584 |
|
|
|
25,610 |
|
Income tax expense |
|
|
6,882 |
|
|
|
6,475 |
|
Net
Income |
|
$ |
20,702 |
|
|
$ |
19,135 |
|
SUPPLEMENTAL YEAR TO DATE FINANCIAL DATA
(UNAUDITED) |
|
|
|
Nine Months Ended September 30, |
|
|
|
2022 |
|
|
|
2021 |
|
KEY OPERATING RATIOS |
|
|
|
|
Return on average assets
("ROAA") |
|
|
1.19 |
% |
|
|
1.20 |
% |
Pre-tax Pre-Provision
ROAA** |
|
|
1.68 |
|
|
|
1.64 |
|
Return on average common
equity ("ROACE") |
|
|
14.17 |
|
|
|
12.53 |
|
Pre-tax Pre-Provision
ROACE** |
|
|
19.96 |
|
|
|
17.16 |
|
Return on Average Tangible
Common Equity ("ROATCE") |
|
|
15.25 |
|
|
|
13.53 |
|
Average total equity to
average total assets |
|
|
8.42 |
|
|
|
9.58 |
|
Interest rate spread |
|
|
3.15 |
|
|
|
3.31 |
|
Net interest margin |
|
|
3.28 |
|
|
|
3.38 |
|
Cost of funds |
|
|
0.28 |
|
|
|
0.23 |
|
Cost of deposits |
|
|
0.21 |
|
|
|
0.15 |
|
Cost of debt |
|
|
3.80 |
|
|
|
2.73 |
|
Efficiency ratio |
|
|
49.03 |
|
|
|
52.52 |
|
Non-interest income to average
assets |
|
|
0.24 |
|
|
|
0.35 |
|
Non-interest expense to
average assets |
|
|
1.62 |
|
|
|
1.82 |
|
Net operating expense to
average assets |
|
|
1.38 |
|
|
|
1.47 |
|
Average interest-earning
assets to average interest-bearing liabilities |
|
|
147.26 |
|
|
|
130.95 |
|
Net charge-offs to average
portfolio loans |
|
|
0.04 |
|
|
|
0.13 |
|
|
|
|
|
|
COMMON SHARE
DATA |
|
|
|
|
Basic net income per common
share |
|
$ |
3.66 |
|
|
$ |
3.29 |
|
Diluted net income per common
share |
|
|
3.65 |
|
|
|
3.29 |
|
Cash dividends paid per common
share |
|
|
0.53 |
|
|
|
0.43 |
|
|
|
|
|
|
Weighted average
common shares outstanding: |
|
|
|
|
Basic |
|
|
5,656,950 |
|
|
|
5,813,704 |
|
Diluted |
|
|
5,665,950 |
|
|
|
5,823,218 |
|
____________________________________
** Non-GAAP financial measure. See reconciliation of GAAP and
NON-GAAP measures.
RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)
Reconciliation of U.S. GAAP total
assets, common equity, common equity to assets and book value to
Non-GAAP tangible assets, tangible common equity, tangible common
equity to tangible assets and tangible book value.
This press release, including the accompanying
financial statement tables, contains financial information
determined by methods other than in accordance with generally
accepted accounting principles, or GAAP. This financial information
includes certain performance measures, which exclude intangible
assets. These non-GAAP measures are included because the Company
believes they may provide useful supplemental information for
evaluating the underlying performance trends of the Company.
(dollars in thousands, except per share amounts) |
|
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
Total assets |
|
$ |
2,359,621 |
|
|
$ |
2,323,514 |
|
|
$ |
2,351,923 |
|
|
$ |
2,327,306 |
|
|
$ |
2,278,692 |
|
Less: intangible assets |
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
10,835 |
|
|
|
10,835 |
|
|
|
10,835 |
|
|
|
10,835 |
|
|
|
10,835 |
|
Core deposit intangible |
|
|
725 |
|
|
|
821 |
|
|
|
924 |
|
|
|
1,032 |
|
|
|
1,147 |
|
Total intangible assets |
|
|
11,560 |
|
|
|
11,656 |
|
|
|
11,759 |
|
|
|
11,867 |
|
|
|
11,982 |
|
Tangible assets |
|
$ |
2,348,061 |
|
|
$ |
2,311,858 |
|
|
$ |
2,340,164 |
|
|
$ |
2,315,439 |
|
|
$ |
2,266,710 |
|
|
|
|
|
|
|
|
|
|
|
|
Total common equity |
|
$ |
179,154 |
|
|
$ |
184,871 |
|
|
$ |
193,140 |
|
|
$ |
208,133 |
|
|
$ |
204,128 |
|
Less: intangible assets |
|
|
11,560 |
|
|
|
11,656 |
|
|
|
11,759 |
|
|
|
11,867 |
|
|
|
11,982 |
|
Tangible common equity |
|
$ |
167,594 |
|
|
$ |
173,215 |
|
|
$ |
181,381 |
|
|
$ |
196,266 |
|
|
$ |
192,146 |
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding at
end of period |
|
|
5,644,186 |
|
|
|
5,649,729 |
|
|
|
5,686,799 |
|
|
|
5,718,528 |
|
|
|
5,724,011 |
|
|
|
|
|
|
|
|
|
|
|
|
Common equity to assets |
|
|
7.59 |
% |
|
|
7.96 |
% |
|
|
8.21 |
% |
|
|
8.94 |
% |
|
|
8.96 |
% |
Tangible common equity to
tangible assets |
|
|
7.14 |
% |
|
|
7.49 |
% |
|
|
7.75 |
% |
|
|
8.48 |
% |
|
|
8.48 |
% |
|
|
|
|
|
|
|
|
|
|
|
Common book value per
share |
|
$ |
31.74 |
|
|
$ |
32.72 |
|
|
$ |
33.96 |
|
|
$ |
36.40 |
|
|
$ |
35.66 |
|
Tangible common book value per
share |
|
$ |
29.69 |
|
|
$ |
30.66 |
|
|
$ |
31.90 |
|
|
$ |
34.32 |
|
|
$ |
33.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
Pre-Tax Pre-Provision
("PTPP") Income, PTPP Return on
Average Assets ("ROAA"), PTPP
Return on Average Common Equity
("ROACE"), and Return on Average
Tangible Common Equity
("ROATCE")
Management believes that PTPP income, which
reflects the Company's profitability before income taxes and
provisions for credit losses, allows investors to better assess the
Company's operating income and expenses in relation to the
Company's core operating revenue by removing the volatility that is
associated with credit provisions and different state income tax
rates for comparable institutions. ROATCE is computed by dividing
net earnings applicable to common shareholders by average tangible
common shareholders' equity. Management believes that ROATCE is
meaningful because it measures the performance of a business
consistently, whether acquired or internally developed. ROATCE is a
non-GAAP measure and may not be comparable to similar non-GAAP
measures used by other companies. Management also believes that
during a crisis such as the COVID-19 pandemic, this information is
useful as the impact of the pandemic on the provisions for credit
losses of various institutions will likely vary based on the
geography of the communities served by a particular
institution.
|
|
Three Months Ended |
|
Nine Months Ended |
(dollars in thousands) |
|
September 30, 2022 |
|
June 30,
2022 |
|
March 31,
2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
September 30, 2022 |
|
September 30, 2021 |
Net income (as reported) |
|
$ |
7,580 |
|
|
$ |
6,834 |
|
|
$ |
6,288 |
|
|
$ |
6,751 |
|
|
$ |
6,404 |
|
|
$ |
20,702 |
|
|
$ |
19,135 |
|
Provision for credit
losses |
|
|
694 |
|
|
|
425 |
|
|
|
450 |
|
|
|
— |
|
|
|
— |
|
|
|
1,569 |
|
|
|
586 |
|
Provision (recovery) for
unfunded commitments |
|
|
6 |
|
|
|
26 |
|
|
|
(31 |
) |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
Income tax expenses |
|
|
2,380 |
|
|
|
2,369 |
|
|
|
2,133 |
|
|
|
2,241 |
|
|
|
2,158 |
|
|
|
6,882 |
|
|
|
6,475 |
|
Non-GAAP PTPP income |
|
$ |
10,660 |
|
|
$ |
9,654 |
|
|
$ |
8,840 |
|
|
$ |
8,992 |
|
|
$ |
8,562 |
|
|
$ |
29,154 |
|
|
$ |
26,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROAA |
|
|
1.31 |
% |
|
|
1.19 |
% |
|
|
1.08 |
% |
|
|
1.18 |
% |
|
|
1.17 |
% |
|
|
1.19 |
% |
|
|
1.20 |
% |
Pre-tax Pre-Provision
ROAA |
|
|
1.84 |
% |
|
|
1.68 |
% |
|
|
1.52 |
% |
|
|
1.57 |
% |
|
|
1.57 |
% |
|
|
1.68 |
% |
|
|
1.64 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROACE |
|
|
15.97 |
% |
|
|
14.39 |
% |
|
|
12.30 |
% |
|
|
13.00 |
% |
|
|
12.45 |
% |
|
|
14.17 |
% |
|
|
12.53 |
% |
Pre-tax Pre-Provision
ROACE |
|
|
22.46 |
% |
|
|
20.33 |
% |
|
|
17.29 |
% |
|
|
17.31 |
% |
|
|
16.65 |
% |
|
|
19.96 |
% |
|
|
17.16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets |
|
$ |
2,322,315 |
|
|
$ |
2,293,536 |
|
|
$ |
2,325,992 |
|
|
$ |
2,293,264 |
|
|
$ |
2,187,989 |
|
|
$ |
2,313,887 |
|
|
$ |
2,125,596 |
|
Average equity |
|
$ |
189,838 |
|
|
$ |
189,992 |
|
|
$ |
204,554 |
|
|
$ |
207,745 |
|
|
$ |
205,723 |
|
|
$ |
194,741 |
|
|
$ |
203,597 |
|
|
|
Three Months Ended |
|
Nine Months Ended |
(dollars in thousands) |
|
September 30, 2022 |
|
June 30,
2022 |
|
March 31,
2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
September 30, 2022 |
|
September 30, 2021 |
Net income (as reported) |
|
$ |
7,580 |
|
|
$ |
6,834 |
|
|
$ |
6,288 |
|
|
$ |
6,751 |
|
|
$ |
6,404 |
|
|
$ |
20,702 |
|
|
$ |
19,135 |
|
Core deposit intangible
amortization (net of tax) |
|
|
74 |
|
|
|
76 |
|
|
|
81 |
|
|
|
86 |
|
|
|
91 |
|
|
|
231 |
|
|
|
284 |
|
Net earnings applicable to
common shareholders |
|
$ |
7,654 |
|
|
$ |
6,910 |
|
|
$ |
6,369 |
|
|
$ |
6,837 |
|
|
$ |
6,495 |
|
|
$ |
20,933 |
|
|
$ |
19,419 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROATCE |
|
|
17.18 |
% |
|
|
15.50 |
% |
|
|
13.22 |
% |
|
|
13.97 |
% |
|
|
13.41 |
% |
|
|
15.25 |
% |
|
|
13.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average tangible common
equity |
|
$ |
178,215 |
|
|
$ |
178,269 |
|
|
$ |
192,725 |
|
|
$ |
195,803 |
|
|
$ |
193,662 |
|
|
$ |
183,017 |
|
|
$ |
191,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE CONSOLIDATED BALANCE SHEETS AND NET INTEREST
INCOME(UNAUDITED) |
|
|
|
For the Three Months Ended September 30, |
|
For the Three Months Ended |
|
|
|
2022 |
|
|
|
2021 |
|
|
September 30, 2022 |
|
June 30, 2022 |
(dollars in thousands) |
|
Average
Balance |
|
Interest |
|
Average
Yield/Cost |
|
Average
Balance |
|
Interest |
|
Average
Yield/Cost |
|
Average
Balance |
|
Interest |
|
Average
Yield/Cost |
|
Average
Balance |
|
Interest |
|
Average
Yield/Cost |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
1,205,675 |
|
|
$ |
13,117 |
|
4.35 |
% |
|
$ |
1,094,089 |
|
|
$ |
10,977 |
|
4.01 |
% |
|
$ |
1,205,675 |
|
|
$ |
13,117 |
|
4.35 |
% |
|
$ |
1,181,885 |
|
|
$ |
11,842 |
|
4.01 |
% |
Residential first mortgages |
|
|
82,336 |
|
|
|
715 |
|
3.47 |
% |
|
|
100,195 |
|
|
|
742 |
|
2.96 |
% |
|
|
82,336 |
|
|
|
715 |
|
3.47 |
% |
|
|
85,030 |
|
|
|
730 |
|
3.43 |
% |
Residential rentals |
|
|
223,532 |
|
|
|
2,286 |
|
4.09 |
% |
|
|
154,481 |
|
|
|
1,565 |
|
4.05 |
% |
|
|
223,532 |
|
|
|
2,286 |
|
4.09 |
% |
|
|
194,972 |
|
|
|
1,999 |
|
4.10 |
% |
Construction and land development |
|
|
27,770 |
|
|
|
386 |
|
5.56 |
% |
|
|
34,810 |
|
|
|
399 |
|
4.58 |
% |
|
|
27,770 |
|
|
|
386 |
|
5.56 |
% |
|
|
30,302 |
|
|
|
361 |
|
4.77 |
% |
Home equity and second mortgages |
|
|
25,612 |
|
|
|
352 |
|
5.50 |
% |
|
|
27,751 |
|
|
|
246 |
|
3.55 |
% |
|
|
25,612 |
|
|
|
352 |
|
5.50 |
% |
|
|
26,101 |
|
|
|
274 |
|
4.20 |
% |
Commercial loans |
|
|
52,280 |
|
|
|
865 |
|
6.62 |
% |
|
|
44,881 |
|
|
|
547 |
|
4.88 |
% |
|
|
52,280 |
|
|
|
865 |
|
6.62 |
% |
|
|
42,744 |
|
|
|
517 |
|
4.84 |
% |
Commercial equipment loans |
|
|
76,392 |
|
|
|
781 |
|
4.09 |
% |
|
|
59,964 |
|
|
|
614 |
|
4.10 |
% |
|
|
76,392 |
|
|
|
781 |
|
4.09 |
% |
|
|
68,349 |
|
|
|
699 |
|
4.09 |
% |
U.S. SBA PPP loans |
|
|
2,595 |
|
|
|
160 |
|
24.66 |
% |
|
|
71,751 |
|
|
|
1,236 |
|
6.89 |
% |
|
|
2,595 |
|
|
|
160 |
|
24.66 |
% |
|
|
11,847 |
|
|
|
315 |
|
10.64 |
% |
Consumer loans |
|
|
5,082 |
|
|
|
73 |
|
5.75 |
% |
|
|
1,742 |
|
|
|
16 |
|
3.67 |
% |
|
|
5,082 |
|
|
|
73 |
|
5.75 |
% |
|
|
4,040 |
|
|
|
35 |
|
3.47 |
% |
Allowance for credit losses |
|
|
(21,667 |
) |
|
|
— |
|
0.00 |
% |
|
|
(18,852 |
) |
|
|
— |
|
0.00 |
% |
|
|
(21,667 |
) |
|
|
— |
|
0.00 |
% |
|
|
(21,375 |
) |
|
|
— |
|
0.00 |
% |
Loan
portfolio(1) |
|
$ |
1,679,607 |
|
|
$ |
18,735 |
|
4.46 |
% |
|
$ |
1,570,812 |
|
|
$ |
16,342 |
|
4.16 |
% |
|
$ |
1,679,607 |
|
|
$ |
18,735 |
|
4.46 |
% |
|
$ |
1,623,895 |
|
|
$ |
16,772 |
|
4.13 |
% |
Taxable investment
securities |
|
|
464,560 |
|
|
|
2,338 |
|
2.01 |
% |
|
|
370,498 |
|
|
|
1,212 |
|
1.31 |
% |
|
|
464,560 |
|
|
|
2,338 |
|
2.01 |
% |
|
|
484,079 |
|
|
|
1,808 |
|
1.49 |
% |
Nontaxable investment
securities |
|
|
21,225 |
|
|
|
116 |
|
2.19 |
% |
|
|
16,204 |
|
|
|
84 |
|
2.07 |
% |
|
|
21,225 |
|
|
|
116 |
|
2.19 |
% |
|
|
21,304 |
|
|
|
117 |
|
2.20 |
% |
Interest-bearing deposits in
other banks |
|
|
18,930 |
|
|
|
85 |
|
1.80 |
% |
|
|
36,516 |
|
|
|
16 |
|
0.18 |
% |
|
|
18,930 |
|
|
|
85 |
|
1.80 |
% |
|
|
23,958 |
|
|
|
63 |
|
1.05 |
% |
Federal funds sold |
|
|
11,163 |
|
|
|
71 |
|
2.54 |
% |
|
|
30,266 |
|
|
|
5 |
|
0.07 |
% |
|
|
11,163 |
|
|
|
71 |
|
2.54 |
% |
|
|
6,178 |
|
|
|
14 |
|
0.91 |
% |
Total Interest-Earning
Assets |
|
|
2,195,485 |
|
|
|
21,345 |
|
3.89 |
% |
|
|
2,024,296 |
|
|
|
17,659 |
|
3.49 |
% |
|
|
2,195,485 |
|
|
|
21,345 |
|
3.89 |
% |
|
|
2,159,414 |
|
|
|
18,774 |
|
3.48 |
% |
Cash and cash equivalents |
|
|
18,975 |
|
|
|
|
|
|
|
66,292 |
|
|
|
|
|
|
|
18,975 |
|
|
|
|
|
|
|
28,645 |
|
|
|
|
|
Goodwill |
|
|
10,835 |
|
|
|
|
|
|
|
10,835 |
|
|
|
|
|
|
|
10,835 |
|
|
|
|
|
|
|
10,835 |
|
|
|
|
|
Core deposit intangible |
|
|
788 |
|
|
|
|
|
|
|
1,226 |
|
|
|
|
|
|
|
788 |
|
|
|
|
|
|
|
888 |
|
|
|
|
|
Other assets |
|
|
96,232 |
|
|
|
|
|
|
|
85,340 |
|
|
|
|
|
|
|
96,232 |
|
|
|
|
|
|
|
93,754 |
|
|
|
|
|
Total
Assets |
|
$ |
2,322,315 |
|
|
|
|
|
|
$ |
2,187,989 |
|
|
|
|
|
|
$ |
2,322,315 |
|
|
|
|
|
|
$ |
2,293,536 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand
deposits |
|
$ |
644,606 |
|
|
$ |
— |
|
0.00 |
% |
|
$ |
434,316 |
|
|
$ |
— |
|
0.00 |
% |
|
$ |
644,606 |
|
|
$ |
— |
|
0.00 |
% |
|
$ |
650,249 |
|
|
$ |
— |
|
0.00 |
% |
Interest-bearing deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
|
121,450 |
|
|
|
15 |
|
0.05 |
% |
|
|
110,873 |
|
|
|
14 |
|
0.05 |
% |
|
|
121,450 |
|
|
|
15 |
|
0.05 |
% |
|
|
120,645 |
|
|
|
15 |
|
0.05 |
% |
Demand deposits |
|
|
620,109 |
|
|
|
1,499 |
|
0.97 |
% |
|
|
659,628 |
|
|
|
75 |
|
0.05 |
% |
|
|
620,109 |
|
|
|
1,499 |
|
0.97 |
% |
|
|
571,475 |
|
|
|
431 |
|
0.30 |
% |
Money market deposits |
|
|
378,251 |
|
|
|
99 |
|
0.10 |
% |
|
|
358,017 |
|
|
|
100 |
|
0.11 |
% |
|
|
378,251 |
|
|
|
99 |
|
0.10 |
% |
|
|
|
|
|
0.11 |
% |
Certificates of deposit |
|
|
304,361 |
|
|
|
237 |
|
0.31 |
% |
|
|
341,672 |
|
|
|
405 |
|
0.47 |
% |
|
|
304,361 |
|
|
|
237 |
|
0.31 |
% |
|
|
317,930 |
|
|
|
270 |
|
0.34 |
% |
Total interest-bearing
deposits |
|
|
1,424,171 |
|
|
|
1,850 |
|
0.52 |
% |
|
|
1,470,190 |
|
|
|
594 |
|
0.16 |
% |
|
|
1,424,171 |
|
|
|
1,850 |
|
0.52 |
% |
|
|
1,395,644 |
|
|
|
819 |
|
0.23 |
% |
Total Deposits |
|
|
2,068,777 |
|
|
|
1,850 |
|
0.36 |
% |
|
|
1,904,506 |
|
|
|
594 |
|
0.12 |
% |
|
|
2,068,777 |
|
|
|
1,850 |
|
0.36 |
% |
|
|
2,045,893 |
|
|
|
819 |
|
0.16 |
% |
Long-term debt |
|
|
— |
|
|
|
— |
|
0.00 |
% |
|
|
25,625 |
|
|
|
131 |
|
2.04 |
% |
|
|
— |
|
|
|
— |
|
0.00 |
% |
|
|
3,350 |
|
|
|
22 |
|
2.63 |
% |
Short-term debt |
|
|
8,310 |
|
|
|
52 |
|
2.50 |
% |
|
|
— |
|
|
|
— |
|
0.00 |
% |
|
|
8,310 |
|
|
|
52 |
|
2.50 |
% |
|
|
5,791 |
|
|
|
16 |
|
1.11 |
% |
Subordinated Notes |
|
|
19,543 |
|
|
|
252 |
|
5.16 |
% |
|
|
19,487 |
|
|
|
251 |
|
5.15 |
% |
|
|
19,543 |
|
|
|
252 |
|
5.16 |
% |
|
|
19,529 |
|
|
|
252 |
|
5.16 |
% |
Guaranteed preferred
beneficial interest in junior subordinated debentures |
|
|
12,000 |
|
|
|
134 |
|
4.47 |
% |
|
|
12,000 |
|
|
|
74 |
|
2.47 |
% |
|
|
12,000 |
|
|
|
134 |
|
4.47 |
% |
|
|
12,000 |
|
|
|
97 |
|
3.23 |
% |
Total Debt |
|
|
39,853 |
|
|
|
438 |
|
4.40 |
% |
|
|
57,112 |
|
|
|
456 |
|
3.19 |
% |
|
|
39,853 |
|
|
|
438 |
|
4.40 |
% |
|
|
40,670 |
|
|
|
387 |
|
3.81 |
% |
Interest-Bearing
Liabilities |
|
|
1,464,024 |
|
|
|
2,288 |
|
0.63 |
% |
|
|
1,527,302 |
|
|
|
1,050 |
|
0.27 |
% |
|
|
1,464,024 |
|
|
|
2,288 |
|
0.63 |
% |
|
|
1,436,314 |
|
|
|
1,206 |
|
0.34 |
% |
Total Funds |
|
|
2,108,630 |
|
|
|
2,288 |
|
0.43 |
% |
|
|
1,961,618 |
|
|
|
1,050 |
|
0.21 |
% |
|
|
2,108,630 |
|
|
|
2,288 |
|
0.43 |
% |
|
|
2,086,563 |
|
|
|
1,206 |
|
0.23 |
% |
Other liabilities |
|
|
23,847 |
|
|
|
|
|
|
|
20,648 |
|
|
|
|
|
|
|
23,847 |
|
|
|
|
|
|
|
16,981 |
|
|
|
|
|
Stockholders' equity |
|
|
189,838 |
|
|
|
|
|
|
|
205,723 |
|
|
|
|
|
|
|
189,838 |
|
|
|
|
|
|
|
189,992 |
|
|
|
|
|
Total Liabilities and
Stockholders' Equity |
|
$ |
2,322,315 |
|
|
|
|
|
|
$ |
2,187,989 |
|
|
|
|
|
|
$ |
2,322,315 |
|
|
|
|
|
|
$ |
2,293,536 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
$ |
19,057 |
|
|
|
|
|
$ |
16,609 |
|
|
|
|
|
$ |
19,057 |
|
|
|
|
|
$ |
17,568 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread |
|
|
|
|
|
3.26 |
% |
|
|
|
|
|
3.22 |
% |
|
|
|
|
|
3.26 |
% |
|
|
|
|
|
3.14 |
% |
Net yield on interest-earning
assets |
|
|
|
|
|
3.47 |
% |
|
|
|
|
|
3.28 |
% |
|
|
|
|
|
3.47 |
% |
|
|
|
|
|
3.25 |
% |
Average interest-earning
assets to average interest-bearing liabilities |
|
|
|
|
|
149.96 |
% |
|
|
|
|
|
132.54 |
% |
|
|
|
|
|
149.96 |
% |
|
|
|
|
|
150.34 |
% |
Average loans to average
deposits |
|
|
|
|
|
81.19 |
% |
|
|
|
|
|
82.48 |
% |
|
|
|
|
|
81.19 |
% |
|
|
|
|
|
79.37 |
% |
Average transaction deposits
to total average deposits ** |
|
|
|
|
|
85.29 |
% |
|
|
|
|
|
82.06 |
% |
|
|
|
|
|
85.29 |
% |
|
|
|
|
|
84.46 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of funds |
|
|
|
|
|
0.43 |
% |
|
|
|
|
|
0.21 |
% |
|
|
|
|
|
0.43 |
% |
|
|
|
|
|
0.23 |
% |
Cost of deposits |
|
|
|
|
|
0.36 |
% |
|
|
|
|
|
0.12 |
% |
|
|
|
|
|
0.36 |
% |
|
|
|
|
|
0.16 |
% |
Cost of debt |
|
|
|
|
|
4.40 |
% |
|
|
|
|
|
3.19 |
% |
|
|
|
|
|
4.40 |
% |
|
|
|
|
|
3.81 |
% |
(1) Loan average balance includes non-accrual
loans. There are no tax equivalency adjustments. There were
$62,000, $91,000 and $55,000 of accretion interest for the three
months ended September 30, 2022 and 2021, and June 30,
2022, respectively.
____________________________________
** Transaction deposits exclude time deposits.
|
AVERAGE CONSOLIDATED BALANCE SHEETS AND NET INTEREST INCOME
(UNAUDITED) |
|
|
|
For the Nine Months Ended September 30, |
|
|
|
2022 |
|
|
|
2021 |
|
(dollars in thousands) |
|
Average
Balance |
|
Interest |
|
Average
Yield/Cost |
|
Average
Balance |
|
Interest |
|
Average
Yield/Cost |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
1,166,898 |
|
|
$ |
35,697 |
|
4.08 |
% |
|
$ |
1,081,350 |
|
|
$ |
32,625 |
|
4.02 |
% |
Residential first mortgages |
|
|
84,707 |
|
|
|
2,157 |
|
3.40 |
|
|
|
111,401 |
|
|
|
2,494 |
|
2.99 |
|
Residential rentals |
|
|
205,368 |
|
|
|
6,116 |
|
3.97 |
|
|
|
144,316 |
|
|
|
4,421 |
|
4.08 |
|
Construction and land development |
|
|
30,559 |
|
|
|
1,154 |
|
5.04 |
|
|
|
36,401 |
|
|
|
1,226 |
|
4.49 |
|
Home equity and second mortgages |
|
|
25,885 |
|
|
|
871 |
|
4.49 |
|
|
|
28,689 |
|
|
|
745 |
|
3.46 |
|
Commercial loans |
|
|
47,252 |
|
|
|
1,932 |
|
5.45 |
|
|
|
44,241 |
|
|
|
1,614 |
|
4.86 |
|
Commercial equipment loans |
|
|
68,872 |
|
|
|
2,122 |
|
4.11 |
|
|
|
60,506 |
|
|
|
1,725 |
|
3.80 |
|
U.S. SBA PPP loans |
|
|
11,563 |
|
|
|
927 |
|
10.69 |
|
|
|
97,231 |
|
|
|
4,356 |
|
5.97 |
|
Consumer loans |
|
|
4,119 |
|
|
|
141 |
|
4.56 |
|
|
|
1,497 |
|
|
|
48 |
|
4.28 |
|
Allowance for credit losses |
|
|
(21,364 |
) |
|
|
— |
|
— |
|
|
|
(18,908 |
) |
|
|
— |
|
— |
|
Loan
portfolio(1) |
|
$ |
1,623,859 |
|
|
$ |
51,117 |
|
4.20 |
|
|
$ |
1,586,724 |
|
|
$ |
49,254 |
|
4.14 |
|
Taxable investment
securities |
|
|
477,527 |
|
|
|
5,717 |
|
1.60 |
|
|
|
292,625 |
|
|
|
3,182 |
|
1.45 |
|
Nontaxable investment
securities |
|
|
20,028 |
|
|
|
327 |
|
2.18 |
|
|
|
17,517 |
|
|
|
279 |
|
2.12 |
|
Interest-bearing deposits in
other banks |
|
|
28,412 |
|
|
|
209 |
|
0.98 |
|
|
|
30,183 |
|
|
|
44 |
|
0.19 |
|
Federal funds sold |
|
|
5,821 |
|
|
|
85 |
|
1.95 |
|
|
|
27,964 |
|
|
|
22 |
|
0.10 |
|
Total Interest-Earning
Assets |
|
|
2,155,647 |
|
|
|
57,455 |
|
3.55 |
|
|
|
1,955,013 |
|
|
|
52,781 |
|
3.60 |
|
Cash and cash equivalents |
|
|
54,369 |
|
|
|
|
|
|
|
71,559 |
|
|
|
|
|
Goodwill |
|
|
10,835 |
|
|
|
|
|
|
|
10,835 |
|
|
|
|
|
Core deposit intangible |
|
|
889 |
|
|
|
|
|
|
|
1,351 |
|
|
|
|
|
Other assets |
|
|
92,147 |
|
|
|
|
|
|
|
86,838 |
|
|
|
|
|
Total
Assets |
|
$ |
2,313,887 |
|
|
|
|
|
|
$ |
2,125,596 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand
deposits |
|
|
635,013 |
|
|
|
— |
|
— |
% |
|
|
407,375 |
|
|
|
— |
|
— |
% |
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
|
121,111 |
|
|
|
46 |
|
0.05 |
|
|
|
106,190 |
|
|
$ |
40 |
|
0.05 |
|
Demand deposits |
|
|
605,590 |
|
|
|
2,033 |
|
0.45 |
|
|
|
628,543 |
|
|
|
258 |
|
0.05 |
|
Money market deposits |
|
|
380,873 |
|
|
|
302 |
|
0.11 |
|
|
|
354,161 |
|
|
|
297 |
|
0.11 |
|
Certificates of deposit |
|
|
314,813 |
|
|
|
801 |
|
0.34 |
|
|
|
345,821 |
|
|
|
1,441 |
|
0.56 |
|
Total Interest-bearing
deposits |
|
|
1,422,387 |
|
|
|
3,182 |
|
0.30 |
|
|
|
1,434,715 |
|
|
|
2,036 |
|
0.19 |
|
Total Deposits |
|
|
2,057,400 |
|
|
|
3,182 |
|
0.21 |
|
|
|
1,842,090 |
|
|
|
2,036 |
|
0.15 |
|
Long-term debt |
|
|
5,145 |
|
|
|
47 |
|
1.22 |
|
|
|
26,723 |
|
|
|
213 |
|
1.06 |
|
Short-term borrowings |
|
|
4,731 |
|
|
|
68 |
|
1.92 |
|
|
|
— |
|
|
|
— |
|
— |
|
Subordinated Notes |
|
|
19,529 |
|
|
|
755 |
|
5.15 |
|
|
|
19,483 |
|
|
|
754 |
|
5.16 |
|
Guaranteed preferred beneficial interest in junior subordinated
debentures |
|
|
12,000 |
|
|
|
309 |
|
3.43 |
|
|
|
12,000 |
|
|
|
225 |
|
2.50 |
|
Total Debt |
|
|
41,405 |
|
|
|
1,179 |
|
3.80 |
|
|
|
58,206 |
|
|
|
1,192 |
|
2.73 |
|
Total Interest-Bearing
Liabilities |
|
|
1,463,792 |
|
|
|
4,361 |
|
0.40 |
|
|
|
1,492,921 |
|
|
|
3,228 |
|
0.29 |
|
Total funds |
|
|
2,098,805 |
|
|
|
4,361 |
|
0.28 |
% |
|
|
1,900,296 |
|
|
|
3,228 |
|
0.23 |
% |
Other liabilities |
|
|
20,341 |
|
|
|
|
|
|
|
21,703 |
|
|
|
|
|
Stockholders' equity |
|
|
194,741 |
|
|
|
|
|
|
|
203,597 |
|
|
|
|
|
Total Liabilities and
Stockholders' Equity |
|
$ |
2,313,887 |
|
|
|
|
|
|
$ |
2,125,596 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
$ |
53,094 |
|
|
|
|
|
$ |
49,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread |
|
|
|
|
|
3.15 |
% |
|
|
|
|
|
3.31 |
% |
Net yield on interest-earning
assets |
|
|
|
|
|
3.28 |
% |
|
|
|
|
|
3.38 |
% |
Average interest-earning
assets to average interest-bearing liabilities |
|
|
|
|
|
147.26 |
% |
|
|
|
|
|
130.95 |
% |
Average loans to average
deposits |
|
|
|
|
|
78.93 |
% |
|
|
|
|
|
86.14 |
% |
Average transaction deposits
to total average deposits ** |
|
|
|
|
|
84.70 |
% |
|
|
|
|
|
81.23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of funds |
|
|
|
|
|
0.28 |
% |
|
|
|
|
|
0.23 |
% |
Cost of deposits |
|
|
|
|
|
0.21 |
% |
|
|
|
|
|
0.15 |
% |
Cost of debt |
|
|
|
|
|
3.80 |
% |
|
|
|
|
|
2.73 |
% |
(1) Loan average balance includes non-accrual
loans. There are no tax equivalency adjustments. There were
$168,000 and $256,000 of accretion interest during the nine months
ended September 30, 2022 and 2021, respectively.
____________________________________
** Transaction deposits exclude time deposits.
|
SUMMARY OF LOAN PORTFOLIO (UNAUDITED)
(dollars in thousands) |
|
Portfolio loans,
net of deferred costs and fees, are summarized by type as
follows: |
|
|
|
As of ** |
BY LOAN TYPE |
|
September 30, 2022 |
|
% |
|
June 30,
2022 |
|
% |
|
March 31,
2022 |
|
% |
|
December 31, 2021 |
|
% |
|
September 30, 2021 |
|
% |
Portfolio Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
1,202,660 |
|
|
68.98 |
% |
|
$ |
1,178,758 |
|
|
71.33 |
% |
|
$ |
1,177,761 |
|
|
72.28 |
% |
|
$ |
1,113,793 |
|
|
70.54 |
% |
|
$ |
1,087,102 |
|
|
70.89 |
% |
Residential first mortgages |
|
|
83,081 |
|
|
4.77 |
|
|
|
84,782 |
|
|
5.13 |
|
|
|
86,416 |
|
|
5.30 |
|
|
|
92,710 |
|
|
5.87 |
|
|
|
98,590 |
|
|
6.43 |
|
Residential rentals |
|
|
282,365 |
|
|
16.20 |
|
|
|
210,116 |
|
|
12.72 |
|
|
|
191,065 |
|
|
11.73 |
|
|
|
194,911 |
|
|
12.35 |
|
|
|
172,073 |
|
|
11.22 |
|
Construction and land development |
|
|
23,197 |
|
|
1.33 |
|
|
|
31,068 |
|
|
1.88 |
|
|
|
30,649 |
|
|
1.88 |
|
|
|
35,502 |
|
|
2.25 |
|
|
|
37,070 |
|
|
2.42 |
|
Home equity and second mortgages |
|
|
26,054 |
|
|
1.49 |
|
|
|
25,200 |
|
|
1.53 |
|
|
|
26,445 |
|
|
1.62 |
|
|
|
25,661 |
|
|
1.63 |
|
|
|
26,542 |
|
|
1.73 |
|
Commercial loans |
|
|
41,615 |
|
|
2.39 |
|
|
|
43,472 |
|
|
2.63 |
|
|
|
48,948 |
|
|
3.00 |
|
|
|
50,512 |
|
|
3.20 |
|
|
|
48,287 |
|
|
3.15 |
|
Consumer loans |
|
|
5,754 |
|
|
0.33 |
|
|
|
4,511 |
|
|
0.27 |
|
|
|
3,592 |
|
|
0.22 |
|
|
|
3,015 |
|
|
0.19 |
|
|
|
2,183 |
|
|
0.14 |
|
Commercial equipment |
|
|
78,551 |
|
|
4.51 |
|
|
|
74,552 |
|
|
4.51 |
|
|
|
64,662 |
|
|
3.97 |
|
|
|
62,706 |
|
|
3.97 |
|
|
|
61,569 |
|
|
4.02 |
|
Total portfolio
loans |
|
|
1,743,277 |
|
|
100.00 |
% |
|
|
1,652,459 |
|
|
100.00 |
% |
|
|
1,629,538 |
|
|
100.00 |
% |
|
|
1,578,810 |
|
|
100.00 |
% |
|
|
1,533,416 |
|
|
100.00 |
% |
Less: Allowance for Credit
Losses |
|
|
(22,027 |
) |
|
(1.26 |
) |
|
|
(21,404 |
) |
|
(1.30 |
) |
|
|
(21,382 |
) |
|
(1.31 |
) |
|
|
(18,417 |
) |
|
(1.17 |
) |
|
|
(18,579 |
) |
|
(1.21 |
) |
Total net portfolio
loans |
|
|
1,721,250 |
|
|
|
|
|
1,631,055 |
|
|
|
|
|
1,608,156 |
|
|
|
|
|
1,560,393 |
|
|
|
|
|
1,514,837 |
|
|
|
U.S. SBA PPP loans |
|
|
1,211 |
|
|
|
|
|
5,022 |
|
|
|
|
|
15,279 |
|
|
|
|
|
26,398 |
|
|
|
|
|
54,807 |
|
|
|
Total net
loans |
|
$ |
1,722,461 |
|
|
|
|
$ |
1,636,077 |
|
|
|
|
$ |
1,623,435 |
|
|
|
|
$ |
1,586,791 |
|
|
|
|
$ |
1,569,644 |
|
|
|
____________________________________
** December 31, 2021 and September 30, 2021 reported
balance are shown net of deferred costs and fees to conform with
the current period's presentation.
|
END OF PERIOD CONTRACTUAL RATES (UNAUDITED) |
|
The following
table is based on end of period ("EOP") contractual interest rates
and does not include the amortization of deferred costs and fees or
assumptions regarding non-accrual interest: |
|
|
|
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
(dollars in thousands) |
|
EOP Contractual
Interest rate |
|
EOP Contractual
Interest rate |
|
EOP Contractual
Interest rate |
|
EOP Contractual
Interest rate |
|
EOP Contractual
Interest rate |
Commercial real estate |
|
4.36 |
% |
|
4.00 |
% |
|
3.79 |
% |
|
3.79 |
% |
|
3.91 |
% |
Residential first
mortgages |
|
3.84 |
% |
|
3.83 |
% |
|
3.80 |
% |
|
3.80 |
% |
|
3.84 |
% |
Residential rentals |
|
4.34 |
% |
|
4.03 |
% |
|
3.78 |
% |
|
3.81 |
% |
|
3.97 |
% |
Construction and land
development |
|
5.61 |
% |
|
4.57 |
% |
|
4.36 |
% |
|
4.38 |
% |
|
4.32 |
% |
Home equity and second
mortgages |
|
5.64 |
% |
|
4.19 |
% |
|
3.50 |
% |
|
3.51 |
% |
|
3.51 |
% |
Commercial loans |
|
5.93 |
% |
|
4.79 |
% |
|
4.47 |
% |
|
4.48 |
% |
|
4.48 |
% |
Consumer loans |
|
5.12 |
% |
|
5.13 |
% |
|
4.33 |
% |
|
4.37 |
% |
|
5.26 |
% |
Commercial equipment |
|
4.37 |
% |
|
4.30 |
% |
|
4.29 |
% |
|
4.32 |
% |
|
4.39 |
% |
U.S. SBA PPP loans |
|
1.00 |
% |
|
1.00 |
% |
|
1.00 |
% |
|
1.00 |
% |
|
1.00 |
% |
Total
Loans |
|
4.41 |
% |
|
4.04 |
% |
|
3.81 |
% |
|
3.80 |
% |
|
3.85 |
% |
|
|
|
|
|
|
|
|
|
|
|
Yields without U.S.
SBA PPP Loans |
|
4.41 |
% |
|
4.05 |
% |
|
3.85 |
% |
|
3.84 |
% |
|
3.95 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLOWANCE FOR CREDIT LOSSES AND ALLOWANCE FOR LOAN LOSSES
(UNAUDITED) |
|
(dollars in thousands)
|
|
For the Three Months Ended** |
|
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
Beginning of period |
|
$ |
21,404 |
|
|
$ |
21,382 |
|
|
$ |
18,417 |
|
|
$ |
18,579 |
|
|
$ |
18,516 |
|
|
|
|
|
|
|
|
|
|
|
|
Impact of ASC 326
Adoption |
|
|
— |
|
|
|
— |
|
|
|
2,496 |
|
|
|
— |
|
|
|
— |
|
Charge-offs |
|
|
(92 |
) |
|
|
(447 |
) |
|
|
— |
|
|
|
(181 |
) |
|
|
(491 |
) |
Recoveries |
|
|
21 |
|
|
|
44 |
|
|
|
19 |
|
|
|
19 |
|
|
|
554 |
|
Net (charge-offs)
recoveries |
|
|
(71 |
) |
|
|
(403 |
) |
|
|
19 |
|
|
|
(162 |
) |
|
|
63 |
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses |
|
|
694 |
|
|
|
425 |
|
|
|
450 |
|
|
|
— |
|
|
|
— |
|
End of period |
|
$ |
22,027 |
|
|
$ |
21,404 |
|
|
$ |
21,382 |
|
|
$ |
18,417 |
|
|
$ |
18,579 |
|
|
|
|
|
|
|
|
|
|
|
|
Net (charge-offs) recoveries
to average portfolio loans (annualized)2 |
|
|
(0.02 |
)% |
|
|
(0.10 |
)% |
|
|
0.00 |
% |
|
|
(0.04 |
)% |
|
|
0.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
Breakdown of general and specific allowance as a
percentage of total portfolio
loans2 |
General allowance |
|
$ |
21,919 |
|
|
$ |
21,108 |
|
|
$ |
21,087 |
|
|
$ |
18,151 |
|
|
$ |
18,256 |
|
Specific allowance |
|
|
108 |
|
|
|
296 |
|
|
|
295 |
|
|
|
266 |
|
|
|
323 |
|
|
|
$ |
22,027 |
|
|
$ |
21,404 |
|
|
$ |
21,382 |
|
|
$ |
18,417 |
|
|
$ |
18,579 |
|
|
|
|
|
|
|
|
|
|
|
|
General allowance |
|
|
1.26 |
% |
|
|
1.28 |
% |
|
|
1.29 |
% |
|
|
1.15 |
% |
|
|
1.19 |
% |
Specific allowance |
|
|
— |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
Allowance to total portfolio
loans |
|
|
1.26 |
% |
|
|
1.30 |
% |
|
|
1.31 |
% |
|
|
1.17 |
% |
|
|
1.21 |
% |
|
|
|
|
|
|
|
|
|
|
|
Allowance to non-acquired
loans |
|
|
n/a |
(1) |
|
|
n/a |
(1) |
|
|
n/a |
(1) |
|
|
1.20 |
% |
|
|
1.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
Allowance + Non-PCI FV
Mark |
|
|
n/a |
(2) |
|
|
n/a |
(2) |
|
$ |
n/a
|
(2) |
|
$ |
18,815 |
|
|
$ |
19,070 |
|
Allowance + Non-PCI FV Mark to
total portfolio loans |
|
|
n/a |
(2) |
|
|
n/a |
(2) |
|
|
n/a
|
(2)
|
|
|
1.19 |
% |
|
|
1.24 |
% |
____________________________________
** The Company implemented the CECL accounting standard
effective January 1, 2022. The Company used an incurred loss
methodology for quarters displayed before March 31, 2022.
(1) Allowance to non-acquired
loans is no longer relevant as the ACL considers all portfolio
loans.
(2) Allowance to non-acquired loans and Non-PCI FV
Mark are no longer relevant as all the ACL considers all loan
portfolios.
|
CLASSIFIED AND SPECIAL MENTION
ASSETS3
(UNAUDITED) |
|
The following is
a breakdown of the Company’s classified and special mention
assets at September 30, 2022, June 30, 2022, March
31, 2022 and December 31, 2021, 2020, 2019, and
2018,
respectively: |
|
|
|
As of |
(dollars in thousands) |
|
9/30/2022 |
|
6/30/2022 |
|
3/31/2022 |
|
12/31/2021 |
|
12/31/2020 |
|
12/31/2019 |
|
12/31/2018 |
Classified loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Substandard |
|
$ |
5,967 |
|
|
$ |
6,062 |
|
|
$ |
4,745 |
|
|
$ |
5,211 |
|
|
$ |
19,249 |
|
|
$ |
26,863 |
|
|
$ |
32,226 |
|
Doubtful |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total classified loans |
|
|
5,967 |
|
|
|
6,062 |
|
|
|
4,745 |
|
|
|
5,211 |
|
|
|
19,249 |
|
|
|
26,863 |
|
|
|
32,226 |
|
Special mention loans |
|
|
160 |
|
|
|
160 |
|
|
|
— |
|
|
|
— |
|
|
|
7,672 |
|
|
|
— |
|
|
|
— |
|
Total classified and special
mention loans |
|
$ |
6,127 |
|
|
$ |
6,222 |
|
|
$ |
4,745 |
|
|
$ |
5,211 |
|
|
$ |
26,921 |
|
|
$ |
26,863 |
|
|
$ |
32,226 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Classified loans |
|
$ |
5,967 |
|
|
$ |
6,062 |
|
|
$ |
4,745 |
|
|
$ |
5,211 |
|
|
$ |
19,249 |
|
|
$ |
26,863 |
|
|
$ |
32,226 |
|
Classified securities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
482 |
|
Other real estate owned |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,109 |
|
|
|
7,773 |
|
|
|
8,111 |
|
Total classified assets |
|
$ |
5,967 |
|
|
$ |
6,062 |
|
|
$ |
4,745 |
|
|
$ |
5,211 |
|
|
$ |
22,358 |
|
|
$ |
34,636 |
|
|
$ |
40,819 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total classified
assets as a percentage of total assets |
|
|
0.25 |
% |
|
|
0.26 |
% |
|
|
0.20 |
% |
|
|
0.22 |
% |
|
|
1.10 |
% |
|
|
1.93 |
% |
|
|
2.42 |
% |
Total classified
assets as a percentage of Risk Based Capital |
|
|
2.25 |
% |
|
|
2.35 |
% |
|
|
1.87 |
% |
|
|
2.10 |
% |
|
|
9.61 |
% |
|
|
16.21 |
% |
|
|
21.54 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUMMARY OF DEPOSITS (UNAUDITED) |
|
|
|
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
(dollars in thousands) |
|
Balance |
|
% |
|
Balance |
|
% |
|
Balance |
|
% |
|
Balance |
|
% |
|
Balance |
|
% |
Noninterest-bearing demand |
|
$ |
647,432 |
|
30.45 |
% |
|
$ |
635,649 |
|
30.48 |
% |
|
$ |
644,385 |
|
30.75 |
% |
|
$ |
445,778 |
|
21.68 |
% |
|
$ |
432,606 |
|
21.58 |
% |
Interest-bearing: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
691,987 |
|
32.54 |
% |
|
|
635,344 |
|
30.47 |
% |
|
|
618,869 |
|
29.54 |
% |
|
|
790,481 |
|
38.45 |
% |
|
|
764,482 |
|
38.14 |
% |
Money market deposits |
|
|
371,175 |
|
17.45 |
% |
|
|
380,712 |
|
18.26 |
% |
|
|
387,700 |
|
18.51 |
% |
|
|
372,717 |
|
18.13 |
% |
|
|
355,582 |
|
17.74 |
% |
Savings |
|
|
123,564 |
|
5.81 |
% |
|
|
119,363 |
|
5.72 |
% |
|
|
124,038 |
|
5.92 |
% |
|
|
119,767 |
|
5.82 |
% |
|
|
112,282 |
|
5.60 |
% |
Certificates of deposit |
|
|
292,399 |
|
13.75 |
% |
|
|
314,308 |
|
15.07 |
% |
|
|
320,091 |
|
15.28 |
% |
|
|
327,421 |
|
15.92 |
% |
|
|
339,655 |
|
16.94 |
% |
Total interest-bearing |
|
|
1,479,125 |
|
69.55 |
% |
|
|
1,449,727 |
|
69.52 |
% |
|
|
1,450,698 |
|
69.25 |
% |
|
|
1,610,386 |
|
78.32 |
% |
|
|
1,572,001 |
|
78.42 |
% |
Total Deposits |
|
$ |
2,126,557 |
|
100.00 |
% |
|
$ |
2,085,376 |
|
100.00 |
% |
|
$ |
2,095,083 |
|
100.00 |
% |
|
$ |
2,056,164 |
|
100.00 |
% |
|
$ |
2,004,607 |
|
100.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction
accounts |
|
$ |
1,834,158 |
|
86.25 |
% |
|
$ |
1,771,068 |
|
84.93 |
% |
|
$ |
1,774,992 |
|
84.72 |
% |
|
$ |
1,728,743 |
|
84.08 |
% |
|
$ |
1,664,952 |
|
83.06 |
% |
_________________________________
1 The Company implemented the CECL accounting standard
effective January 1, 2022. The Company used an incurred loss
methodology for all periods compared before March 31, 2022.
2 Portfolio loans include all loan portfolios except the
U.S. SBA PPP loan portfolio
3 Classified loans are not net
of deferred costs and fees before the quarter ended March 31,
2022.
Grafico Azioni Community Financial (NASDAQ:TCFC)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Community Financial (NASDAQ:TCFC)
Storico
Da Giu 2023 a Giu 2024