LOS ANGELES--(BUSINESS WIRE)--CBB Bancorp, Inc. ("CBB" or the "Company') (OTCQX: CBBI), the holding company of Commonwealth Business Bank (the "Bank"), announced today net income for second quarter 2022 of $6.5 million, or $0.62 per diluted share, a decrease of 23.2% compared to $8.4 million, or $0.80 per diluted share, in the prior quarter and an increase of 2.4% compared to $6.3 million, or $0.61 per diluted share, in the same period last year.
Overall Results
Net income for second quarter 2022 was affected by higher loan loss provisions during the quarter as a result of increases in past due and classified loans and growth in the loan portfolio. Core earnings remained strong, as our net interest margin and efficiency ratio improved from the prior quarter. Our return on average assets for second quarter 2022 was 1.43% compared to 1.91% for first quarter 2022 and 1.70% for second quarter 2021. Our return on average equity for second quarter 2022 was 13.30%, compared to 18.08% for first quarter 2022 and 14.91% for second quarter 2021. Our net interest margin for second quarter 2022 was 3.75%, compared to 3.68% for first quarter 2022 and 3.75% for second quarter 2021. Our efficiency ratio for second quarter 2022 was 49.45%, compared to 50.71% for first quarter 2022 and 52.24% for second quarter 2021.
James Hong, President and CEO, commented, “We are pleased to announce strong core earnings for the second quarter of 2022, despite the uncertain economic climate. We continue to see opportunities to add to our core earnings going forward through the addition of quality loan and deposit customers.”
Net Interest Income and Margin
Net Interest Income
Net interest income for second quarter 2022 was $16.4 million, an increase of $615 thousand, or 3.9%, from first quarter 2022, and an increase of $2.9 million, or 21.2%, from second quarter 2021. The increase in net interest income compared with the prior quarter was driven by loan growth, as well as an increase in variable rate asset yields due to recent increases in interest rates by the Federal Reserve Bank. Net interest income growth compared with the second quarter of 2021 also benefited from the merger with Ohana Pacific Bank (OPB) as of July 1, 2021.
Net Interest Margin
Our net interest margin for second quarter 2022 was 3.75%, compared to 3.68% for first quarter 2022 and 3.75% for second quarter 2021. The increase in net interest margin compared to first quarter 2022 was due to increased interest income on cash and due from banks balances, which are immediately affected by the Federal Reserve’s interest rate changes. Our cost of funds for second quarter 2022 increased to 0.34% from 0.31% for first quarter 2022 and decreased from 0.42% for second quarter 2021.
Provision for Loan Losses:
The Company had a provision for loan losses for second quarter 2022 of $1.6 million, compared to a recovery of $1.2 million for first quarter 2022 and no provision for loan losses for second quarter 2021. The provision recorded for the current quarter was due to moderate increases in delinquencies and classified assets and growth in the loan portfolio. See Table 10 in this press release for additional information and trends.
Noninterest Income:
Noninterest income for second quarter 2022 was $4.5 million, compared to $5.6 million for first quarter 2022 and $5.0 million for second quarter 2021. The decrease in noninterest income in second quarter 2022 was primarily the result of decreased gains on sales of loans. Sales of SBA loans were $50.8 million with an average premium percentage received of 8.0% during the second quarter of 2022, compared with SBA loan sales of $50.5 million with an average premium percentage received of 11.0% during the first quarter of 2022 and SBA loan sales of $42.2 million with an average premium percentage received of 11.9% during the second quarter of 2021.
Noninterest Expense:
Noninterest expense for second quarter 2022 was $10.4 million, compared to $10.9 million for first quarter 2022 and $9.7 million for second quarter 2021. Salaries and employee benefits were substantially unchanged at $7.0 million in second quarter 2022 compared with the prior quarter, and up from $6.0 million in the second quarter of 2021. The decrease in other expenses compared to the first quarter of 2022 was in part due to the reversal of a provision for probable loss of $800 thousand that had been established with respect to an anticipated repurchase of SBA loans sold. The reversal was recorded to reflect the final settlement that was made with the SBA on the loans in question. The increased noninterest expense levels in the second quarter of 2022 compared to the prior year is primarily due to the inclusion of the operations of OPB, acquired as of July 1, 2021, for the full period.
Income Taxes:
The Company’s effective tax rate for second quarter 2022 was 28.3% compared to 28.4% for first quarter 2022 and 28.9% for second quarter 2021.
Balance Sheet:
Investment Securities:
Investment securities were $77.5 million at June 30, 2022, a decrease of $2.6 million from March 31, 2022 and $4.9 million from June 30, 2021. The decreases were due to principal paydowns. There were no portfolio additions in second quarter 2022, or in the comparable period of 2021.
Loans Receivable:
Loans receivable (including loans held for sale) at June 30, 2022 was $1.4 billion, an increase of $26.6 million, or 1.9%, from loans receivable at March 31, 2022, and an increase of $172.1 million, or 14.0%, from loans receivable at June 30, 2021. The increase in loan balances compared with the second quarter of 2021 was due to the $149.2 million in loans receivable that were acquired in the OPB merger as of July 1, 2021, as well as organic growth.
Our weighted average loan-to-value ratio of commercial real estate loans was 69.9% at June 30, 2022. Excluding SBA loans, our weighted average loan-to-value of CRE loans was 53.8%. For additional information, please go to www.cbb-bank.com under tab “About Us” and select “Investors Relations” to see 2Q 2022 Overview and COVID-19 update presentation.
Paycheck Protection Program (PPP):
PPP loans totaled $10.7 million at June 30, 2022. Net unearned fees on PPP loans as of June 30, 2022 were $271 thousand, and these fees are being accreted to income based on a two-year contractual maturity. The SBA approved $10.2 million in PPP loan forgiveness applications processed for our PPP loans in second quarter 2022.
Allowance for Loan Losses and Asset Quality:
Our allowance for loan losses at June 30, 2022 was $14.7 million, or 1.17% of portfolio loans, compared to $13.1 million, or 1.07% of portfolio loans, at March 31 2022 and compared to $14.9 million, or 1.32% of portfolio loans, at June 30, 2021. Excluding PPP loans of $10.7. million, which are government guaranteed, the allowance for loan losses at June 30, 2022 was 1.18%, compared to 1.09% and 1.42%, respectively, at March 31, 2022 and June 30, 2021. The decrease in the allowance as a percentage of the portfolio in the current quarter compared with the prior year is primarily due to loans acquired in the OPB merger, which have been recorded at market value and do not currently carry any loan loss allowance. Non-performing loans were $2.5 million at June 30, 2022, compared to $723 thousand at March 31, 2022 and $1.3 million at June 30, 2021. Loans with payment deferments are considered to be performing loans in accordance with regulatory guidance. Our coverage ratio of allowance for loan losses to nonperforming assets exceeded 500%. For additional information, please go to www.cbb-bank.com under tab “About Us” and select “Investors Relations” to see 2Q 2022 Overview and COVID-19 update presentation.
SBA Loans Held for Sale:
SBA loans held for sale at June 30, 2022 were $141.1 million, compared to $149.7 million at March 31, 2022 and $96.6 million at June 30, 2021. We continue to assess SBA loan sale premiums and plan to sell loans when we believe it is advantageous to do so. See comments under “Noninterest Income,” and Table 7 for additional SBA loan origination and sale data.
Deposits:
Deposits were $1.5 billion at June 30, 2022, down $18.6 million, or 1.2%, from March 31, 2022 and up $136.7 million, or 9.9%, from June 30, 2021. Noninterest-bearing demand deposits (“DDAs”) decreased $9.8 million, or 1.7%, to $566.6 million at June 30, 2022 from March 31, 2022 and decreased $5.7 million, or 1.0%, from June 30, 2021. DDAs were 38.2% of total deposits at June 30, 2022, compared to 38.4% at March 31, 2022 and 41.5% at June 30, 2021. NOW and MMDA accounts decreased $17.0 million, or 4.9%, to $327.5 million at June 30, 2022 from March 31, 2022 and increased $36.0 million, or 12.4%, from June 30, 2021. Time deposits increased $13.4 million, or 2.6%, at June 30, 2022 from March 31, 2022 and increased $61.1 million, or 12.9%, from June 30, 2021. Time deposits at June 30, 2022 were $534.7 million, or 35.3% of total deposits, compared to $521.4 million, or 34.0% of total deposits, at March 31, 2022, and $473.7 million, or 34.4% of total deposits, at June 30, 2021. The primary cause of the decreases in noninterest bearing deposit balances during 2022 compared with earlier quarters was a decline in escrow-related deposits sourced from our Specialty Deposit Group. The increase in total deposits compared with the second quarter of 2021 was due to normal growth combined with the completion of the merger with OPB during the third quarter of 2021.
Borrowings:
Borrowings at June 30, 2022, March 31, 2022 and June 30, 2021 consisted of $50.0 million of Federal Home Loan Bank of San Francisco advances at each date.
Capital:
Stockholders’ equity was $197.1 million at June 30, 2022, representing an increase of $6.0 million, or 3.2%, over stockholders’ equity of $191.1 million at March 31, 2022. Tangible book value per share at June 30, 2022 was $18.68, compared with $18.31 at March 31, 2022, an increase of $0.37 per share or 2.0%.
All of our regulatory capital ratios continue to exceed the minimum levels required to be considered “Well Capitalized” as defined for bank regulatory purposes and in compliance with the fully phased-in Basel III requirements, as shown on Table 11 in this press release. Our Common Equity Tier 1 risked-based capital at June 30, 2022 was 14.47% at the Company level and 14.38% at the Bank level.
About CBB Bancorp, Inc.:
CBB Bancorp, Inc. is the holding company of Commonwealth Business Bank, a full-service commercial bank which specializes in loans to small- to medium-sized businesses and does business as “CBB Bank.” As of June 30, 2022, the Bank has ten full-service banking offices in Los Angeles and Orange Counties in California, Dallas County in Texas and Honolulu, Hawaii; two SBA regional offices in Los Angeles and Dallas Counties; and five loan production offices in Texas, Georgia, Colorado and Washington. For additional information, please go to www.cbb-bank.com under tab “About Us” and select “Investors Relations” to see 2Q 2022 Overview and COVID-19 update presentation.
FORWARD-LOOKING STATEMENTS:
This press release contains forward-looking statements. These statements typically include words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar terms and phrases, including references to assumptions. You should not place undue reliance on such statements. Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management’s experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company’s control) that could cause actual results to differ materially from the anticipated future results expressed or implied by such forward-looking statements. Factors that could affect our results include, without limitation, the following: the timing and occurrence or non-occurrence of anticipated events may be subject to circumstances beyond the Company’s control; increases in competitive pressure among financial institutions or from non-financial institutions may occur; changes in the interest rate environment may reduce interest margins; changes in deposit flows, loan demand or real estate values may adversely affect the business of the Company and the Bank; significant increases in loan losses may occur; changes in accounting principles, policies or guidelines may cause the Company’s financial condition to be perceived differently by investors and stock market analysts; changes in corporate and/or individual income tax laws may adversely affect the Company’s financial condition or results of operations or the behavior of our loan and deposit customers; changes in general economic conditions, either nationally or locally in some or all areas in which the Company conducts business, the effects of the COVID-19 pandemic, and of other widespread outbreaks of disease or pandemics, together with related impacts on general economic conditions, including adverse impacts on our customers’ ability to make timely payments on their loans from us, reduced fee income due to reduced loan origination activity, reductions in or absence of gains on loan sales due to uncertainty in the loan sale market, and increased operating expense due to required changes in how we conduct our business may adversely affect us; conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates; legislation or regulatory changes may adversely affect the Company’s business; technological changes may be more difficult or expensive to implement or accommodate than the Company anticipates; there may be failures or breaches of our information technology security systems or those of our third party service providers; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; or litigation or matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates; we may encounter greater difficulty, delay and expense than we anticipate in integrating the personnel and operations of Ohana Pacific Bank or any other companies we acquire. The Company undertakes no obligation to revise any forward-looking statement contained herein to reflect any future events or circumstances, except to the extent required by law.
Schedules and Financial Data: All tables and data to follow
STATEMENT OF INCOME AND PERFORMANCE HIGHLIGHT (Unaudited) - Table 1 |
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(Dollars in thousands, except per share amounts) |
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|
Three Months Ended |
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Six Months Ended |
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|
|
June 30, |
|
March 31, |
|
$ |
|
% |
|
June 30, |
|
$ |
|
% |
|
June 30, |
|
June 30, |
|
$ |
|
% |
|||||||||||||||||||
|
|
2022 |
|
2022 |
|
Change |
|
Change |
|
2021 |
|
Change |
|
Change |
|
2022 |
|
2021 |
|
Change |
|
Change |
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| Interest income | $ |
17,807 |
|
$ |
17,032 |
|
$ |
775 |
|
4.6 |
% |
$ |
14,923 |
|
$ |
2,884 |
|
19.3 |
% |
$ |
34,839 |
|
$ |
29,295 |
|
$ |
5,544 |
|
18.9 |
% |
|||||||||||
| Interest expense |
|
1,369 |
|
|
1,209 |
|
|
160 |
|
13.2 |
% |
|
1,358 |
|
|
11 |
|
0.8 |
% |
|
2,578 |
|
|
2,891 |
|
|
(313 |
) |
(10.8 |
%) |
|||||||||||
| Net interest income |
|
16,438 |
|
|
15,823 |
|
|
615 |
|
3.9 |
% |
|
13,565 |
|
|
2,873 |
|
21.2 |
% |
|
32,261 |
|
|
26,404 |
|
|
5,857 |
|
22.2 |
% |
|||||||||||
| Provision for loan losses |
|
1,600 |
|
|
(1,167 |
) |
|
2,767 |
|
(237.1 |
%) |
|
- |
|
|
1,600 |
|
100.0 |
% |
|
433 |
|
|
500 |
|
|
(67 |
) |
(13.4 |
%) |
|||||||||||
| Net interest income after provision for loan losses |
|
14,838 |
|
|
16,990 |
|
|
(2,152 |
) |
(12.7 |
%) |
|
13,565 |
|
|
1,273 |
|
9.4 |
% |
|
31,828 |
|
|
25,904 |
|
|
5,924 |
|
22.9 |
% |
|||||||||||
| Gain on sale of loans |
|
3,298 |
|
|
4,668 |
|
|
(1,370 |
) |
(29.3 |
%) |
|
3,988 |
|
|
(690 |
) |
(17.3 |
%) |
|
7,966 |
|
|
6,444 |
|
|
1,522 |
|
23.6 |
% |
|||||||||||
| Gain (loss) on sale of OREO |
|
- |
|
|
- |
|
|
- |
|
- |
|
|
- |
|
|
- |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
- |
|
|||||||||||
| SBA servicing fee income, net |
|
778 |
|
|
469 |
|
|
309 |
|
65.9 |
% |
|
622 |
|
|
156 |
|
25.1 |
% |
|
1,247 |
|
|
1,469 |
|
|
(222 |
) |
(15.1 |
%) |
|||||||||||
| Reversal of valuation allowance on servicing assets |
|
- |
|
|
- |
|
|
- |
|
- |
|
|
- |
|
|
- |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
- |
|
|||||||||||
| Service charges and other income |
|
462 |
|
|
498 |
|
|
(36 |
) |
(7.2 |
%) |
|
395 |
|
|
67 |
|
17.0 |
% |
|
960 |
|
|
774 |
|
|
186 |
|
24.0 |
% |
|||||||||||
| Noninterest income |
|
4,538 |
|
|
5,635 |
|
|
(1,097 |
) |
(19.5 |
%) |
|
5,005 |
|
|
(467 |
) |
(9.3 |
%) |
|
10,173 |
|
|
8,687 |
|
|
1,486 |
|
17.1 |
% |
|||||||||||
| Salaries and employee benefits |
|
6,994 |
|
|
7,065 |
|
|
(71 |
) |
(1.0 |
%) |
|
6,000 |
|
|
994 |
|
16.6 |
% |
|
14,059 |
|
|
10,853 |
|
|
3,206 |
|
29.5 |
% |
|||||||||||
| Occupancy and equipment |
|
1,114 |
|
|
1,120 |
|
|
(6 |
) |
(0.5 |
%) |
|
945 |
|
|
169 |
|
17.9 |
% |
|
2,234 |
|
|
1,924 |
|
|
310 |
|
16.1 |
% |
|||||||||||
| Marketing expense |
|
511 |
|
|
485 |
|
|
26 |
|
5.4 |
% |
|
309 |
|
|
202 |
|
65.4 |
% |
|
996 |
|
|
596 |
|
|
400 |
|
67.1 |
% |
|||||||||||
| Professional expense |
|
517 |
|
|
415 |
|
|
102 |
|
24.6 |
% |
|
491 |
|
|
26 |
|
5.3 |
% |
|
932 |
|
|
946 |
|
|
(14 |
) |
(1.5 |
%) |
|||||||||||
| Merger related expense |
|
123 |
|
|
- |
|
|
123 |
|
100.0 |
% |
|
600 |
|
|
(477 |
) |
(79.5 |
%) |
|
123 |
|
|
1,281 |
|
|
(1,158 |
) |
(90.4 |
%) |
|||||||||||
| Other expenses |
|
1,114 |
|
|
1,796 |
|
|
(682 |
) |
(38.0 |
%) |
|
1,356 |
|
|
(242 |
) |
(17.8 |
%) |
|
2,910 |
|
|
2,656 |
|
|
254 |
|
9.6 |
% |
|||||||||||
| Noninterest expense |
|
10,373 |
|
|
10,881 |
|
|
(508 |
) |
(4.7 |
%) |
|
9,701 |
|
|
672 |
|
6.9 |
% |
|
21,254 |
|
|
18,256 |
|
|
2,998 |
|
16.4 |
% |
|||||||||||
| Income before income tax expense |
|
9,003 |
|
|
11,744 |
|
|
(2,741 |
) |
(23.3 |
%) |
|
8,869 |
|
|
134 |
|
1.5 |
% |
|
20,747 |
|
|
16,335 |
|
|
4,412 |
|
27.0 |
% |
|||||||||||
| Income tax expense |
|
2,547 |
|
|
3,336 |
|
|
(789 |
) |
(23.7 |
%) |
|
2,566 |
|
|
(19 |
) |
(0.7 |
%) |
|
5,883 |
|
|
4,698 |
|
|
1,185 |
|
25.2 |
% |
|||||||||||
| Net income | $ |
6,456 |
|
$ |
8,408 |
|
$ |
(1,952 |
) |
(23.2 |
%) |
$ |
6,303 |
|
$ |
153 |
|
2.4 |
% |
$ |
14,864 |
|
$ |
11,637 |
|
$ |
3,227 |
|
27.7 |
% |
|||||||||||
| Effective tax rate |
|
28.3 |
% |
|
28.4 |
% |
|
(0.1 |
%) |
(0.4 |
%) |
|
28.9 |
% |
|
(0.6 |
%) |
(2.2 |
%) |
|
28.4 |
% |
|
28.8 |
% |
|
(0.4 |
%) |
(1.4 |
%) |
|||||||||||
| Outstanding number of shares |
|
10,416,601 |
|
|
10,299,361 |
|
|
117,240 |
|
1.1 |
% |
|
10,279,962 |
|
|
136,639 |
|
1.3 |
% |
|
10,416,601 |
|
|
10,279,962 |
|
|
136,639 |
|
1.3 |
% |
|||||||||||
| Weighted average shares for basic EPS |
|
10,305,014 |
|
|
10,291,071 |
|
|
13,943 |
|
0.1 |
% |
|
10,262,956 |
|
|
42,058 |
|
0.4 |
% |
|
10,298,081 |
|
|
10,255,167 |
|
|
42,914 |
|
0.4 |
% |
|||||||||||
| Weighted average shares for diluted EPS |
|
10,409,663 |
|
|
10,479,488 |
|
|
(69,825 |
) |
(0.7 |
%) |
|
10,392,427 |
|
|
17,236 |
|
0.2 |
% |
|
10,441,230 |
|
|
10,346,516 |
|
|
94,714 |
|
0.9 |
% |
|||||||||||
| Basic EPS | $ |
0.62 |
|
$ |
0.82 |
|
$ |
(0.20 |
) |
(24.4 |
%) |
$ |
0.61 |
|
$ |
0.01 |
|
1.6 |
% |
$ |
1.44 |
|
$ |
1.13 |
|
$ |
0.31 |
|
27.4 |
% |
|||||||||||
| Diluted EPS | $ |
0.62 |
|
$ |
0.80 |
|
$ |
(0.18 |
) |
(22.5 |
%) |
$ |
0.61 |
|
$ |
0.01 |
|
1.6 |
% |
$ |
1.42 |
|
$ |
1.13 |
|
$ |
0.29 |
|
25.7 |
% |
|||||||||||
| Return on average assets |
|
1.43 |
% |
|
1.91 |
% |
|
(0.48 |
%) |
(25.1 |
%) |
|
1.70 |
% |
|
(0.27 |
%) |
(15.9 |
%) |
|
1.67 |
% |
|
1.65 |
% |
|
0.02 |
% |
1.2 |
% |
|||||||||||
| Return on average equity |
|
13.30 |
% |
|
18.08 |
% |
|
(4.78 |
%) |
(26.4 |
%) |
|
14.91 |
% |
|
(1.61 |
%) |
(10.8 |
%) |
|
15.64 |
% |
|
14.11 |
% |
|
1.53 |
% |
10.8 |
% |
|||||||||||
| Efficiency ratio¹ |
|
49.45 |
% |
|
50.71 |
% |
|
(1.26 |
%) |
(2.5 |
%) |
|
52.24 |
% |
|
(2.79 |
%) |
(5.3 |
%) |
|
50.09 |
% |
|
52.02 |
% |
|
(1.93 |
%) |
(3.7 |
%) |
|||||||||||
| Yield on interest-earning assets² |
|
4.06 |
% |
|
3.96 |
% |
|
0.10 |
% |
2.5 |
% |
|
4.12 |
% |
|
(0.06 |
%) |
(1.5 |
%) |
|
4.01 |
% |
|
4.24 |
% |
|
(0.23 |
%) |
(5.4 |
%) |
|||||||||||
| Cost of funds |
|
0.34 |
% |
|
0.31 |
% |
|
0.03 |
% |
9.7 |
% |
|
0.42 |
% |
|
(0.08 |
%) |
(19.0 |
%) |
|
0.33 |
% |
|
0.47 |
% |
|
(0.14 |
%) |
(29.8 |
%) |
|||||||||||
| Net interest margin² |
|
3.75 |
% |
|
3.68 |
% |
|
0.07 |
% |
1.9 |
% |
|
3.75 |
% |
|
0.00 |
% |
0.0 |
% |
|
3.71 |
% |
|
3.82 |
% |
|
(0.11 |
%) |
(2.9 |
%) |
|||||||||||
1 |
Represents the ratio of noninterest expense less other real estate owned operations to the sum of net interest income before provision for credit losses and total noninterest income, less gains/(loss) on sale of securities, other-than-temporary impairment recovery/(loss) on investment securities and gain/(loss) from other real estate owned. |
||
2 |
Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate |
||
BALANCE SHEET, CAPITAL AND OTHER DATA (Unaudited) - Table 2 |
||||||||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
June 30, |
|
March 31, |
|
$ |
|
% |
|
June 30, |
|
$ |
|
% |
||||||||||||
|
|
2022 |
|
2022 |
|
Change |
|
Change |
|
2021 |
|
Change |
|
Change |
||||||||||||
| ASSETS | ||||||||||||||||||||||||||
| Cash and due from banks | $ |
18,087 |
|
$ |
14,579 |
|
$ |
3,508 |
|
24.1 |
% |
$ |
10,509 |
|
$ |
7,578 |
|
72.1 |
% |
|||||||
| Interest-earning deposits at the FRB and other banks |
|
243,072 |
|
|
288,603 |
|
|
(45,531 |
) |
(15.8 |
%) |
|
240,932 |
|
|
2,140 |
|
0.9 |
% |
|||||||
| Investment securities¹ |
|
77,469 |
|
|
80,104 |
|
|
(2,635 |
) |
(3.3 |
%) |
|
82,354 |
|
|
(4,885 |
) |
(5.9 |
%) |
|||||||
| Loans held-for-sale, at the lower of cost or fair value |
|
141,104 |
|
|
149,733 |
|
|
(8,629 |
) |
(5.8 |
%) |
|
96,554 |
|
|
44,550 |
|
46.1 |
% |
|||||||
| Loans receivable |
|
1,260,939 |
|
|
1,225,739 |
|
|
35,200 |
|
2.9 |
% |
|
1,133,371 |
|
|
127,568 |
|
11.3 |
% |
|||||||
| Allowance for loan losses |
|
(14,739 |
) |
|
(13,089 |
) |
|
(1,650 |
) |
(12.6 |
%) |
|
(14,908 |
) |
|
169 |
|
1.1 |
% |
|||||||
| Loans receivable, net |
|
1,246,200 |
|
|
1,212,650 |
|
|
33,550 |
|
2.8 |
% |
|
1,118,463 |
|
|
127,737 |
|
11.4 |
% |
|||||||
| OREO |
|
- |
|
|
- |
|
|
- |
|
- |
|
|
- |
|
|
- |
|
- |
|
|||||||
| Restricted stock investments |
|
10,111 |
|
|
8,850 |
|
|
1,261 |
|
14.2 |
% |
|
8,850 |
|
|
1,261 |
|
14.2 |
% |
|||||||
| Servicing assets |
|
10,996 |
|
|
10,671 |
|
|
325 |
|
3.0 |
% |
|
10,189 |
|
|
807 |
|
7.9 |
% |
|||||||
| Goodwill |
|
2,185 |
|
|
2,185 |
|
|
- |
|
0.0 |
% |
|
- |
|
|
2,185 |
|
100.0 |
% |
|||||||
| Intangible assets |
|
331 |
|
|
346 |
|
|
(15 |
) |
(4.3 |
%) |
|
- |
|
|
331 |
|
100.0 |
% |
|||||||
| Other assets |
|
28,060 |
|
|
24,061 |
|
|
3,999 |
|
16.6 |
% |
|
45,071 |
|
|
(17,011 |
) |
(37.7 |
%) |
|||||||
| Total assets | $ |
1,777,615 |
|
$ |
1,791,782 |
|
$ |
(14,167 |
) |
(0.8 |
%) |
$ |
1,612,922 |
|
$ |
164,693 |
|
10.2 |
% |
|||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||
| Noninterest-bearing | $ |
566,610 |
|
$ |
576,378 |
|
$ |
(9,768 |
) |
(1.7 |
%) |
$ |
572,284 |
|
$ |
(5,674 |
) |
(1.0 |
%) |
|||||||
| Interest-bearing |
|
948,760 |
|
|
957,633 |
|
|
(8,873 |
) |
(0.9 |
%) |
|
806,397 |
|
|
142,363 |
|
17.7 |
% |
|||||||
| Total deposits |
|
1,515,370 |
|
|
1,534,011 |
|
|
(18,641 |
) |
(1.2 |
%) |
|
1,378,681 |
|
|
136,689 |
|
9.9 |
% |
|||||||
| FHLB advances and other borrowing |
|
50,000 |
|
|
50,000 |
|
|
- |
|
- |
|
|
50,000 |
|
|
- |
|
0.0 |
% |
|||||||
| Other liabilities |
|
15,134 |
|
|
16,687 |
|
|
(1,553 |
) |
(9.3 |
%) |
|
13,026 |
|
|
2,108 |
|
16.2 |
% |
|||||||
| Total liabilities |
|
1,580,504 |
|
|
1,600,698 |
|
|
(20,194 |
) |
(1.3 |
%) |
|
1,441,707 |
|
|
138,797 |
|
9.6 |
% |
|||||||
| Stockholders' Equity |
|
197,111 |
|
|
191,084 |
|
|
6,027 |
|
3.2 |
% |
|
171,215 |
|
|
25,896 |
|
15.1 |
% |
|||||||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ |
1,777,615 |
|
$ |
1,791,782 |
|
$ |
(14,167 |
) |
(0.8 |
%) |
$ |
1,612,922 |
|
$ |
164,693 |
|
10.2 |
% |
|||||||
| CAPITAL RATIOS | ||||||||||||||||||||||||||
| Leverage ratio | ||||||||||||||||||||||||||
| Company |
|
10.80 |
% |
|
10.56 |
% |
|
0.24 |
% |
2.3 |
% |
|
11.35 |
% |
|
(0.55 |
%) |
(4.9 |
%) |
|||||||
| Bank |
|
10.73 |
% |
|
10.55 |
% |
|
0.18 |
% |
1.7 |
% |
|
11.33 |
% |
|
(0.60 |
%) |
(5.3 |
%) |
|||||||
| Common equity tier 1 risk-based capital ratio | ||||||||||||||||||||||||||
| Company |
|
14.47 |
% |
|
14.50 |
% |
|
(0.03 |
%) |
(0.2 |
%) |
|
14.39 |
% |
|
0.08 |
% |
0.6 |
% |
|||||||
| Bank |
|
14.38 |
% |
|
14.50 |
% |
|
(0.12 |
%) |
(0.8 |
%) |
|
14.37 |
% |
|
0.01 |
% |
0.1 |
% |
|||||||
| Tier 1 risk-based capital ratio | ||||||||||||||||||||||||||
| Company |
|
14.47 |
% |
|
14.50 |
% |
|
(0.03 |
%) |
(0.2 |
%) |
|
14.39 |
% |
|
0.08 |
% |
0.6 |
% |
|||||||
| Bank |
|
14.38 |
% |
|
14.50 |
% |
|
(0.12 |
%) |
(0.8 |
%) |
|
14.37 |
% |
|
0.01 |
% |
0.1 |
% |
|||||||
| Total risk-based capital ratio | ||||||||||||||||||||||||||
| Company |
|
15.63 |
% |
|
15.57 |
% |
|
0.06 |
% |
0.4 |
% |
|
15.64 |
% |
|
(0.01 |
%) |
(0.1 |
%) |
|||||||
| Bank |
|
15.53 |
% |
|
15.57 |
% |
|
(0.04 |
%) |
(0.2 |
%) |
|
15.62 |
% |
|
(0.09 |
%) |
(0.6 |
%) |
|||||||
| Tangible common equity per share | $ |
18.68 |
|
$ |
18.31 |
|
$ |
0.37 |
|
2.0 |
% |
$ |
16.66 |
|
$ |
2.02 |
|
12.1 |
% |
|||||||
| Loan-to-Deposit (LTD) ratio |
|
83.21 |
% |
|
79.90 |
% |
|
3.31 |
% |
4.1 |
% |
|
82.21 |
% |
|
1.00 |
% |
1.2 |
% |
|||||||
| Nonperforming assets | $ |
2,532 |
|
$ |
723 |
|
$ |
1,809 |
|
250.2 |
% |
$ |
1,339 |
|
$ |
1,193 |
|
89.1 |
% |
|||||||
| Nonperforming assets as a % of loans receivable |
|
0.20 |
% |
|
0.06 |
% |
|
0.14 |
% |
233.3 |
% |
|
0.12 |
% |
|
0.08 |
% |
66.7 |
% |
|||||||
| ALLL as a % of loans receivable |
|
1.17 |
% |
|
1.07 |
% |
|
0.10 |
% |
9.3 |
% |
|
1.32 |
% |
|
(0.15 |
%) |
(11.4 |
%) |
|||||||
| ALLL as a % of loans receivable exc. SBA PPP loans |
|
1.18 |
% |
|
1.09 |
% |
|
0.09 |
% |
8.3 |
% |
|
1.42 |
% |
|
(0.24 |
%) |
(16.9 |
%) |
|||||||
1 |
Includes AFS and HTM |
|
FIVE-QUARTER STATEMENT OF INCOME (Unaudited) - Table 3 |
||||||||||||||||||||
(Dollars in thousands, except per share amounts) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
||||||||||
|
|
2022 |
|
2022 |
|
2021 |
|
2021 |
|
2021 |
||||||||||
| Interest income | $ |
17,807 |
|
$ |
17,032 |
|
$ |
17,553 |
|
$ |
17,437 |
|
$ |
14,923 |
|
|||||
| Interest expense |
|
1,369 |
|
|
1,209 |
|
|
1,265 |
|
|
1,337 |
|
|
1,358 |
|
|||||
| Net interest income |
|
16,438 |
|
|
15,823 |
|
|
16,288 |
|
|
16,100 |
|
|
13,565 |
|
|||||
| Provision for loan losses |
|
1,600 |
|
|
(1,167 |
) |
|
(800 |
) |
|
- |
|
|
- |
|
|||||
| Net interest income after provision for loan losses |
|
14,838 |
|
|
16,990 |
|
|
17,088 |
|
|
16,100 |
|
|
13,565 |
|
|||||
| Gain on sale of loans |
|
3,298 |
|
|
4,668 |
|
|
4,151 |
|
|
4,305 |
|
|
3,988 |
|
|||||
| Gain (loss) on sale of OREO |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||
| SBA servicing fee income, net |
|
778 |
|
|
469 |
|
|
683 |
|
|
698 |
|
|
622 |
|
|||||
| Reversal of valuation allowance on servicing assets |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||
| Service charges and other income |
|
462 |
|
|
498 |
|
|
499 |
|
|
540 |
|
|
395 |
|
|||||
| Noninterest income |
|
4,538 |
|
|
5,635 |
|
|
5,333 |
|
|
5,543 |
|
|
5,005 |
|
|||||
| Salaries and employee benefits |
|
6,994 |
|
|
7,065 |
|
|
6,614 |
|
|
6,500 |
|
|
6,000 |
|
|||||
| Occupancy and equipment |
|
1,114 |
|
|
1,120 |
|
|
1,028 |
|
|
1,067 |
|
|
945 |
|
|||||
| Marketing expense |
|
511 |
|
|
485 |
|
|
111 |
|
|
287 |
|
|
309 |
|
|||||
| Professional expense |
|
517 |
|
|
415 |
|
|
368 |
|
|
495 |
|
|
491 |
|
|||||
| Merger related expense |
|
123 |
|
|
- |
|
|
454 |
|
|
450 |
|
|
600 |
|
|||||
| Other expenses |
|
1,114 |
|
|
1,796 |
|
|
2,850 |
|
|
1,807 |
|
|
1,356 |
|
|||||
| Noninterest expense |
|
10,373 |
|
|
10,881 |
|
|
11,425 |
|
|
10,606 |
|
|
9,701 |
|
|||||
| Income before income tax expense |
|
9,003 |
|
|
11,744 |
|
|
10,996 |
|
|
11,037 |
|
|
8,869 |
|
|||||
| Income tax expense |
|
2,547 |
|
|
3,336 |
|
|
2,984 |
|
|
3,156 |
|
|
2,566 |
|
|||||
| Net income | $ |
6,456 |
|
$ |
8,408 |
|
$ |
8,012 |
|
$ |
7,881 |
|
$ |
6,303 |
|
|||||
| Effective tax rate |
|
28.3 |
% |
|
28.4 |
% |
|
27.1 |
% |
|
28.6 |
% |
|
28.9 |
% |
|||||
| Outstanding number of shares |
|
10,416,601 |
|
|
10,299,361 |
|
|
10,284,962 |
|
|
10,284,962 |
|
|
10,279,962 |
|
|||||
| Weighted average shares for basic EPS |
|
10,305,014 |
|
|
10,291,071 |
|
|
10,284,962 |
|
|
10,280,016 |
|
|
10,262,956 |
|
|||||
| Weighted average shares for diluted EPS |
|
10,409,663 |
|
|
10,479,488 |
|
|
10,424,771 |
|
|
10,427,687 |
|
|
10,392,427 |
|
|||||
| Basic EPS | $ |
0.62 |
|
$ |
0.82 |
|
$ |
0.78 |
|
$ |
0.77 |
|
$ |
0.61 |
|
|||||
| Diluted EPS | $ |
0.62 |
|
$ |
0.80 |
|
$ |
0.77 |
|
$ |
0.75 |
|
$ |
0.61 |
|
|||||
FIVE-QUARTER SALARIES BENEFIT METRICS (Unaudited) - Table 4 |
||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
At or for the Three Months Ended |
||||||||||||||||||
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
||||||||||
|
|
2022 |
|
2022 |
|
2021 |
|
2021 |
|
2021 |
||||||||||
| Salaries and benefits | $ |
6,994 |
|
$ |
7,065 |
|
$ |
6,614 |
|
$ |
6,500 |
|
$ |
6,000 |
|
|||||
| FTE at the end of period |
|
199 |
|
|
208 |
|
|
205 |
|
|
200 |
|
|
183 |
|
|||||
| Average FTE during the period |
|
201 |
|
|
206 |
|
|
201 |
|
|
202 |
|
|
182 |
|
|||||
| Salaries and benefits/average FTE¹ | $ |
140 |
|
$ |
139 |
|
$ |
131 |
|
$ |
127 |
|
$ |
132 |
|
|||||
| Salaries and benefits/average assets¹ |
|
1.55 |
% |
|
1.60 |
% |
|
1.39 |
% |
|
1.43 |
% |
|
1.62 |
% |
|||||
| Noninterest expense/average assets¹ |
|
2.30 |
% |
|
2.47 |
% |
|
2.40 |
% |
|
2.33 |
% |
|
2.62 |
% |
|||||
1 |
Annualized |
|
FIVE-QUARTER BALANCE SHEET (Unaudited) - Table 5 |
||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
||||||||||
|
|
2022 |
|
2022 |
|
2021 |
|
2021 |
|
2021 |
||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from banks | $ |
18,087 |
|
$ |
14,579 |
|
$ |
7,702 |
|
$ |
11,621 |
|
$ |
10,509 |
|
|||||
| Interest-earning deposits at the FRB and other banks |
|
243,072 |
|
|
288,603 |
|
|
284,583 |
|
|
386,087 |
|
|
240,932 |
|
|||||
| Investment securities¹ |
|
77,469 |
|
|
80,104 |
|
|
84,238 |
|
|
86,440 |
|
|
82,354 |
|
|||||
| Loans held-for-sale, at the lower of cost or fair value |
|
141,104 |
|
|
149,733 |
|
|
158,128 |
|
|
136,394 |
|
|
96,554 |
|
|||||
| Loans receivable |
|
1,260,939 |
|
|
1,225,739 |
|
|
1,241,319 |
|
|
1,255,814 |
|
|
1,133,371 |
|
|||||
| Allowance for loan losses |
|
(14,739 |
) |
|
(13,089 |
) |
|
(14,192 |
) |
|
(15,000 |
) |
|
(14,908 |
) |
|||||
| Loans receivable, net |
|
1,246,200 |
|
|
1,212,650 |
|
|
1,227,127 |
|
|
1,240,814 |
|
|
1,118,463 |
|
|||||
| OREO |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||
| Restricted stock investments |
|
10,111 |
|
|
8,850 |
|
|
8,850 |
|
|
8,850 |
|
|
8,850 |
|
|||||
| Servicing assets |
|
10,996 |
|
|
10,671 |
|
|
10,632 |
|
|
10,392 |
|
|
10,189 |
|
|||||
| Goodwill |
|
2,185 |
|
|
2,185 |
|
|
2,185 |
|
|
2,269 |
|
|
- |
|
|||||
| Intangible assets |
|
331 |
|
|
346 |
|
|
360 |
|
|
375 |
|
|
- |
|
|||||
| Other assets |
|
28,060 |
|
|
24,061 |
|
|
25,450 |
|
|
25,859 |
|
|
45,071 |
|
|||||
| Total assets | $ |
1,777,615 |
|
$ |
1,791,782 |
|
$ |
1,809,255 |
|
$ |
1,909,101 |
|
$ |
1,612,922 |
|
|||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Noninterest-bearing | $ |
566,610 |
|
$ |
576,378 |
|
$ |
619,774 |
|
$ |
670,489 |
|
$ |
572,284 |
|
|||||
| Interest-bearing |
|
948,760 |
|
|
957,633 |
|
|
938,338 |
|
|
995,574 |
|
|
806,397 |
|
|||||
| Total deposits |
|
1,515,370 |
|
|
1,534,011 |
|
|
1,558,112 |
|
|
1,666,063 |
|
|
1,378,681 |
|
|||||
| FHLB advances |
|
50,000 |
|
|
50,000 |
|
|
50,000 |
|
|
50,000 |
|
|
50,000 |
|
|||||
| Other liabilities |
|
15,134 |
|
|
16,687 |
|
|
15,901 |
|
|
14,719 |
|
|
13,026 |
|
|||||
| Total liabilities |
|
1,580,504 |
|
|
1,600,698 |
|
|
1,624,013 |
|
|
1,730,782 |
|
|
1,441,707 |
|
|||||
| Stockholders' Equity |
|
197,111 |
|
|
191,084 |
|
|
185,242 |
|
|
178,319 |
|
|
171,215 |
|
|||||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ |
1,777,615 |
|
$ |
1,791,782 |
|
$ |
1,809,255 |
|
$ |
1,909,101 |
|
$ |
1,612,922 |
|
|||||
1 |
Includes AFS and HTM |
|
FIVE-QUARTER LOANS RECEIVABLE COMPONENTS (Unaudited) - Table 6 |
||||||||||||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
||||||||||||||||||||
|
|
Balance |
|
% |
|
Balance |
|
% |
|
Balance |
|
% |
|
Balance |
|
% |
|
Balance |
|
% |
||||||||||
| Construction | $ |
23,431 |
1.9 |
% |
$ |
18,541 |
1.5 |
% |
$ |
23,939 |
1.9 |
% |
$ |
21,725 |
1.7 |
% |
$ |
18,753 |
1.7 |
% |
||||||||||
| Commercial real estate |
|
1,023,298 |
81.1 |
% |
|
976,924 |
79.7 |
% |
|
978,995 |
78.9 |
% |
|
971,387 |
77.3 |
% |
|
893,700 |
78.8 |
% |
||||||||||
| Commercial and industrial |
|
146,175 |
11.6 |
% |
|
159,111 |
13.0 |
% |
|
169,489 |
13.7 |
% |
|
198,217 |
15.8 |
% |
|
217,350 |
19.2 |
% |
||||||||||
| Home mortgage |
|
57,612 |
4.57 |
% |
|
59,836 |
4.9 |
% |
|
61,030 |
4.9 |
% |
|
60,075 |
4.8 |
% |
|
- |
- |
|
||||||||||
| Consumer |
|
6,609 |
0.5 |
% |
|
7,589 |
0.6 |
% |
|
4,269 |
0.3 |
% |
|
2,185 |
0.2 |
% |
|
2,236 |
0.2 |
% |
||||||||||
| Gross loans |
|
1,257,125 |
99.7 |
% |
|
1,222,001 |
99.7 |
% |
|
1,237,722 |
99.7 |
% |
|
1,253,589 |
99.8 |
% |
|
1,132,039 |
99.9 |
% |
||||||||||
| Net deferred loan fees/costs |
|
3,814 |
0.3 |
% |
|
3,738 |
0.3 |
% |
|
3,597 |
0.3 |
% |
|
2,225 |
0.2 |
% |
|
1,332 |
0.1 |
% |
||||||||||
| Loans receivable | $ |
1,260,939 |
100.0 |
% |
$ |
1,225,739 |
100.0 |
% |
$ |
1,241,319 |
100.0 |
% |
$ |
1,255,814 |
100.0 |
% |
$ |
1,133,371 |
100.0 |
% |
||||||||||
| Loans held-for-sale | $ |
141,104 |
$ |
149,733 |
$ |
158,128 |
$ |
136,394 |
$ |
96,554 |
||||||||||||||||||||
| Loans receivable, including loans held-for-sale | $ |
1,402,043 |
$ |
1,375,472 |
$ |
1,399,447 |
$ |
1,392,208 |
$ |
1,229,925 |
||||||||||||||||||||
FIVE-QUARTER SBA LOAN PRODUCTIONS/SALES DATA (Unaudited) - Table 7 |
||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
||||||||||
|
2022 |
|
2022 |
|
2021 |
|
2021 |
|
2021 |
|||||||||||
| SBA loans held-for-sale at beginning of the quarter/year | $ |
149,733 |
|
$ |
158,128 |
|
$ |
136,394 |
|
$ |
96,554 |
|
$ |
76,066 |
|
|||||
| SBA loans originated/transferred from/to held-for-investment during the quarter/year |
|
43,451 |
|
|
43,132 |
|
|
68,136 |
|
|
82,303 |
|
|
62,864 |
|
|||||
| SBA loans sold during the quarter/year |
|
(50,845 |
) |
|
(50,531 |
) |
|
(42,210 |
) |
|
(42,019 |
) |
|
(42,163 |
) |
|||||
| SBA loans principal payment, net of advance |
|
(1,235 |
) |
|
(996 |
) |
|
(4,193 |
) |
|
(444 |
) |
|
(213 |
) |
|||||
| SBA loans held-for-sale at end of the quarter/year | $ |
141,104 |
|
$ |
149,733 |
|
$ |
158,128 |
|
$ |
136,394 |
|
$ |
96,554 |
|
|||||
| Gain on sale of SBA loans | $ |
3,298 |
|
$ |
4,668 |
|
$ |
4,151 |
|
$ |
4,305 |
|
$ |
3,988 |
|
|||||
| Premium on sale (weighted average) |
|
8.0 |
% |
|
11.0 |
% |
|
11.1 |
% |
|
11.5 |
% |
|
11.9 |
% |
|||||
| SBA loan production | $ |
56,676 |
|
$ |
54,523 |
|
$ |
82,448 |
|
$ |
93,986 |
|
$ |
78,058 |
|
|||||
| Non-PPP loans |
|
56,676 |
|
|
54,523 |
|
|
82,448 |
|
|
93,986 |
|
|
75,065 |
|
|||||
| PPP loans |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
2,994 |
|
|||||
| FIVE QUARTER SBA SERVICING ASSETS AND SERVICING FEES (Unaudited) - Table 8 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
Three Months Ended |
||||||||||||||||||||
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
||||||||||||
2022 |
|
2022 |
|
2021 |
|
2021 |
|
2021 |
||||||||||||
| SBA servicing assets @ beginning of the quarter/year | $ |
10,671 |
|
$ |
10,632 |
|
$ |
10,392 |
|
$ |
10,189 |
|
$ |
10,000 |
|
|||||
| Newly added SBA servicing assets from SBA loans sold |
|
1,081 |
|
|
1,052 |
|
|
1,006 |
|
|
920 |
|
|
897 |
|
|||||
| Regular quarterly/annual servicing assets amortization |
|
(478 |
) |
|
(462 |
) |
|
(453 |
) |
|
(421 |
) |
|
(422 |
) |
|||||
| SBA servicing assets amortized from SBA loans paid off/charged off |
|
(278 |
) |
|
(551 |
) |
|
(313 |
) |
|
(296 |
) |
|
(286 |
) |
|||||
| Subtotal before impairment |
|
10,996 |
|
|
10,671 |
|
|
10,632 |
|
|
10,392 |
|
|
10,189 |
|
|||||
| Reversal of valuation allowance on servicing assets |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||
| SBA servicing assets @ the end of the quarter/year | $ |
10,996 |
|
$ |
10,671 |
|
$ |
10,632 |
|
$ |
10,392 |
|
$ |
10,189 |
|
|||||
FIVE-QUARTER DEPOSIT COMPONENTS (Unaudited) - Table 9 |
||||||||||||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
||||||||||||||||||||
|
|
Balance |
|
% |
|
Balance |
|
% |
|
Balance |
|
% |
|
Balance |
|
% |
|
Balance |
|
% |
||||||||||
| Noninterest-bearing demand | $ |
566,610 |
37.4 |
% |
$ |
576,378 |
37.6 |
% |
$ |
619,774 |
39.8 |
% |
$ |
670,489 |
40.2 |
% |
$ |
572,284 |
41.5 |
% |
||||||||||
| Interest-bearing demand |
|
12,754 |
0.8 |
% |
|
12,059 |
0.8 |
% |
|
10,723 |
0.7 |
% |
|
10,904 |
0.7 |
% |
|
- |
- |
|
||||||||||
| NOW & MMDA |
|
327,477 |
21.6 |
% |
|
344,501 |
22.5 |
% |
|
325,313 |
20.9 |
% |
|
376,549 |
22.6 |
% |
|
291,437 |
21.1 |
% |
||||||||||
| Savings |
|
73,791 |
4.9 |
% |
|
79,685 |
5.2 |
% |
|
76,588 |
4.9 |
% |
|
75,497 |
4.5 |
% |
|
41,284 |
3.0 |
% |
||||||||||
| TCDs of $250K and under |
|
245,203 |
16.2 |
% |
|
253,617 |
16.5 |
% |
|
259,758 |
16.7 |
% |
|
264,130 |
15.9 |
% |
|
219,174 |
15.9 |
% |
||||||||||
| TCDs of $250K over |
|
198,518 |
13.1 |
% |
|
176,754 |
11.5 |
% |
|
174,939 |
11.2 |
% |
|
177,477 |
10.7 |
% |
|
158,485 |
11.5 |
% |
||||||||||
| Wholesale TCDs |
|
91,017 |
6.0 |
% |
|
91,017 |
5.9 |
% |
|
91,017 |
5.8 |
% |
|
91,017 |
5.5 |
% |
|
96,017 |
7.0 |
% |
||||||||||
| Total Deposits | $ |
1,515,370 |
100.0 |
% |
$ |
1,534,011 |
100.0 |
% |
$ |
1,558,112 |
100.0 |
% |
$ |
1,666,063 |
100.0 |
% |
$ |
1,378,681 |
100.0 |
% |
||||||||||
| Recap: | ||||||||||||||||||||||||||||||
| Noninterest-bearing demand | $ |
566,610 |
37.4 |
% |
$ |
576,378 |
37.6 |
% |
$ |
619,774 |
39.8 |
% |
$ |
670,489 |
40.2 |
% |
$ |
572,284 |
41.5 |
% |
||||||||||
| Interest-bearing demand |
|
12,754 |
0.8 |
% |
|
12,059 |
0.8 |
% |
|
10,723 |
0.7 |
% |
|
10,904 |
0.7 |
% |
|
- |
- |
|
||||||||||
| NOW & MMDA |
|
327,477 |
21.6 |
% |
|
344,501 |
22.5 |
% |
|
325,313 |
20.9 |
% |
|
376,549 |
22.6 |
% |
|
291,437 |
21.1 |
% |
||||||||||
| Savings |
|
73,791 |
4.9 |
% |
|
79,685 |
5.2 |
% |
|
76,588 |
4.9 |
% |
|
75,497 |
4.5 |
% |
|
41,284 |
3.0 |
% |
||||||||||
| TCDs of $250K and under |
|
245,203 |
16.2 |
% |
|
253,617 |
16.5 |
% |
|
259,758 |
16.7 |
% |
|
264,130 |
15.9 |
% |
|
219,174 |
15.9 |
% |
||||||||||
| Core Deposits |
|
1,225,835 |
80.9 |
% |
|
1,266,240 |
82.6 |
% |
|
1,292,156 |
83.0 |
% |
|
1,397,569 |
83.9 |
% |
|
1,124,179 |
81.5 |
% |
||||||||||
| TCDs of $250K over |
|
198,518 |
13.1 |
% |
|
176,754 |
11.5 |
% |
|
174,939 |
11.2 |
% |
|
177,477 |
10.7 |
% |
|
158,485 |
11.5 |
% |
||||||||||
| Wholesale TCDs |
|
91,017 |
6.0 |
% |
|
91,017 |
5.9 |
% |
|
91,017 |
5.8 |
% |
|
91,017 |
5.4 |
% |
|
96,017 |
7.0 |
% |
||||||||||
| Noncore Deposits |
|
289,535 |
19.1 |
% |
|
267,771 |
17.4 |
% |
|
265,956 |
17.0 |
% |
|
268,494 |
16.1 |
% |
|
254,502 |
18.5 |
% |
||||||||||
| Total Deposits | $ |
1,515,370 |
100.0 |
% |
$ |
1,534,011 |
100.0 |
% |
$ |
1,558,112 |
100.0 |
% |
$ |
1,666,063 |
100.0 |
% |
$ |
1,378,681 |
100.0 |
% |
||||||||||
FIVE-QUARTER SELECTED LOAN AND ASSET QUALITY HIGHLIGHTS (Unaudited) - Table 10 |
||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
2nd Qtr. |
|
1st Qtr. |
|
4th Qtr. |
|
3rd Qtr. |
|
2nd Qtr. |
||||||||||
|
|
2022 |
|
2022 |
|
2021 |
|
2021 |
|
2021 |
||||||||||
| Allowance for Loan Losses | ||||||||||||||||||||
| Balance at beginning of period | $ |
13,089 |
|
$ |
14,192 |
|
$ |
15,000 |
|
$ |
14,908 |
|
$ |
14,888 |
|
|||||
| Provision for loan losses |
|
1,600 |
|
|
(1,167 |
) |
|
(800 |
) |
|
- |
|
|
- |
|
|||||
| Charge-offs |
|
- |
|
|
- |
|
|
(89 |
) |
|
- |
|
|
- |
|
|||||
| Recoveries |
|
50 |
|
|
64 |
|
|
81 |
|
|
92 |
|
|
20 |
|
|||||
| Balance at the end of period | $ |
14,739 |
|
$ |
13,089 |
|
$ |
14,192 |
|
$ |
15,000 |
|
$ |
14,908 |
|
|||||
| Nonperforming Assets:¹ | ||||||||||||||||||||
| Over 90 days still accruing | $ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
|||||
| Nonaccrual loans |
|
2,532 |
|
|
723 |
|
|
747 |
|
|
768 |
|
|
1,339 |
|
|||||
| Total nonperforming loans |
|
2,532 |
|
|
723 |
|
|
747 |
|
|
768 |
|
|
1,339 |
|
|||||
| Other real estate owned |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||
| Total nonperforming assets | $ |
2,532 |
|
$ |
723 |
|
$ |
747 |
|
$ |
768 |
|
$ |
1,339 |
|
|||||
| Classified Assets:¹ | ||||||||||||||||||||
| Substandard | $ |
11,133 |
|
$ |
9,300 |
|
$ |
11,156 |
|
$ |
10,672 |
|
$ |
10,052 |
|
|||||
| Doubtful |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||
| Loss |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||
| Total classified loans | $ |
11,133 |
|
$ |
9,300 |
|
$ |
11,156 |
|
$ |
10,672 |
|
$ |
10,052 |
|
|||||
| Other real estate owned |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||
| Total classified assets | $ |
11,133 |
|
$ |
9,300 |
|
$ |
11,156 |
|
$ |
10,672 |
|
$ |
10,052 |
|
|||||
| Performing TDR loans: | $ |
4,744 |
|
$ |
3,253 |
|
$ |
3,521 |
|
$ |
3,658 |
|
$ |
3,776 |
|
|||||
| Delinquent Loans:¹ | ||||||||||||||||||||
| Loans 30-89 days past due | $ |
11,553 |
|
$ |
6,275 |
|
$ |
267 |
|
$ |
1,688 |
|
$ |
2,524 |
|
|||||
| 90 days or more past due and still accruing |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||
| Nonaccrual |
|
2,532 |
|
|
723 |
|
|
747 |
|
|
768 |
|
|
1,339 |
|
|||||
| Total delinquent loans | $ |
14,085 |
|
$ |
6,998 |
|
$ |
1,014 |
|
$ |
2,456 |
|
$ |
3,863 |
|
|||||
| Asset Quality Ratios: | ||||||||||||||||||||
| Net (recoveries) charge-offs to average loans² |
|
(0.01 |
%) |
|
(0.02 |
%) |
|
0.00 |
% |
|
(0.03 |
%) |
|
(0.01 |
%) |
|||||
| Nonaccrual loans to loans receivable |
|
0.20 |
% |
|
0.06 |
% |
|
0.06 |
% |
|
0.06 |
% |
|
0.12 |
% |
|||||
| Nonperforming loans to loans receivable |
|
0.20 |
% |
|
0.06 |
% |
|
0.06 |
% |
|
0.06 |
% |
|
0.12 |
% |
|||||
| Nonperforming assets to total assets |
|
0.14 |
% |
|
0.04 |
% |
|
0.04 |
% |
|
0.04 |
% |
|
0.08 |
% |
|||||
| Classified loans to loans receivable |
|
0.88 |
% |
|
0.76 |
% |
|
0.90 |
% |
|
0.85 |
% |
|
0.89 |
% |
|||||
| Classified loans to Tier 1 and ALLL |
|
5.32 |
% |
|
4.61 |
% |
|
5.67 |
% |
|
5.53 |
% |
|
5.40 |
% |
|||||
| Classified assets to total assets |
|
0.63 |
% |
|
0.52 |
% |
|
0.62 |
% |
|
0.56 |
% |
|
0.62 |
% |
|||||
| Classified assets to Tier 1 and ALLL |
|
5.32 |
% |
|
4.61 |
% |
|
5.67 |
% |
|
5.53 |
% |
|
5.40 |
% |
|||||
| ALLL to loans receivable |
|
1.17 |
% |
|
1.07 |
% |
|
1.14 |
% |
|
1.19 |
% |
|
1.32 |
% |
|||||
| ALLL to loans receivable exc. SBA PPP loans |
|
1.18 |
% |
|
1.09 |
% |
|
1.18 |
% |
|
1.26 |
% |
|
1.42 |
% |
|||||
| ALLL to nonaccrual loans |
|
582.11 |
% |
|
1810.37 |
% |
|
1899.87 |
% |
|
1953.13 |
% |
|
1113.37 |
% |
|||||
| ALLL to nonperforming loans |
|
582.11 |
% |
|
1810.37 |
% |
|
1899.87 |
% |
|
1953.13 |
% |
|
1113.37 |
% |
|||||
| ALLL to nonperforming assets |
|
582.11 |
% |
|
1810.37 |
% |
|
1899.87 |
% |
|
1953.13 |
% |
|
1113.37 |
% |
|||||
| Texas ratio³ |
|
1.21 |
% |
|
0.36 |
% |
|
0.38 |
% |
|
0.40 |
% |
|
0.72 |
% |
|||||
1 |
Net of SBA guaranteed balance |
||
2 |
Includes loans held-for-sale |
||
3 |
Nonperforming assets divided by tangible common equity and ALLL |
||
FIVE-QUARTER CAPITAL RATIOS (Unaudited) - Table 11 |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
Well Capitalized |
|
Adequately
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
||||||||||||
|
|
Regulatory |
|
BASEL III |
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Requirement |
|
Fully Phased In |
|
2022 |
|
2022 |
|
2021 |
|
2021 |
|
2021 |
||||||||||||
| Leverage ratio | ||||||||||||||||||||||||||
| Company | N/A |
N/A |
|
10.80 |
% |
|
10.56 |
% |
|
9.55 |
% |
|
9.61 |
% |
|
11.35 |
% |
|||||||||
| Bank | 5.00% |
4.00% |
|
10.73 |
% |
|
10.55 |
% |
|
9.55 |
% |
|
9.60 |
% |
|
11.33 |
% |
|||||||||
| Common equity tier 1 risk-based capital ratio |
|
|
||||||||||||||||||||||||
| Company | N/A |
N/A |
|
14.47 |
% |
|
14.50 |
% |
|
13.83 |
% |
|
13.61 |
% |
|
14.39 |
% |
|||||||||
| Bank | 6.50% |
7.00% |
|
14.38 |
% |
|
14.50 |
% |
|
13.82 |
% |
|
13.59 |
% |
|
14.37 |
% |
|||||||||
| Tier 1 risk-based capital ratio |
|
|
||||||||||||||||||||||||
| Company | N/A |
N/A |
|
14.47 |
% |
|
14.50 |
% |
|
13.83 |
% |
|
13.61 |
% |
|
14.39 |
% |
|||||||||
| Bank | 8.00% |
8.50% |
|
14.38 |
% |
|
14.50 |
% |
|
13.82 |
% |
|
13.59 |
% |
|
14.37 |
% |
|||||||||
| Total risk-based capital ratio |
|
|
||||||||||||||||||||||||
| Company | N/A |
N/A |
|
15.63 |
% |
|
15.57 |
% |
|
14.98 |
% |
|
14.86 |
% |
|
15.64 |
% |
|||||||||
| Bank | 10.00% |
10.50% |
|
15.53 |
% |
|
15.57 |
% |
|
14.97 |
% |
|
14.84 |
% |
|
15.62 |
% |
|||||||||
| Tangible common equity/total assets |
|
10.96 |
% |
|
10.54 |
% |
|
10.11 |
% |
|
9.21 |
% |
|
10.62 |
% |
|||||||||||
| Tangible common equity per share | $ |
18.68 |
|
$ |
18.31 |
|
$ |
17.76 |
|
$ |
17.08 |
|
$ |
16.66 |
|
|||||||||||
FIVE-QUARTER MARGIN ANALYSIS (Unaudited) -Table 12 |
||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||||||||||||||||||||||||||||||||
|
|
June 30, 2021 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
||||||||||||||||||||||||||||||||||||||||
|
|
Avg
|
|
Interest |
|
Yield |
|
Avg
|
|
Interest |
|
Yield |
|
Avg
|
|
Interest |
|
Yield |
|
Avg
|
|
Interest |
|
Yield |
|
Avg
|
|
Interest |
|
Yield |
||||||||||||||||||||
| Number of Days in the Period | ||||||||||||||||||||||||||||||||||||||||||||||||||
| INTEREST-EARNING ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans¹ | $ |
1,389,968 |
|
$ |
16,643 |
4.80 |
% |
$ |
1,368,996 |
|
$ |
16,352 |
4.84 |
% |
$ |
1,396,201 |
|
$ |
16,893 |
4.80 |
% |
$ |
1,390,851 |
|
$ |
16,800 |
4.79 |
% |
$ |
1,195,908 |
|
$ |
14,338 |
4.81 |
% |
|||||||||||||||
| Investment securities² |
|
78,709 |
|
|
488 |
2.49 |
% |
|
82,818 |
|
|
471 |
2.31 |
% |
|
85,555 |
|
|
454 |
2.11 |
% |
|
87,585 |
|
|
460 |
2.08 |
% |
|
83,152 |
|
|
442 |
2.13 |
% |
|||||||||||||||
| Interest-earning deposits at the FRB and other banks |
|
286,974 |
|
|
599 |
0.84 |
% |
|
288,966 |
|
|
141 |
0.20 |
% |
|
365,501 |
|
|
144 |
0.16 |
% |
|
282,512 |
|
|
112 |
0.16 |
% |
|
168,677 |
|
|
54 |
0.13 |
% |
|||||||||||||||
| Other earning assets |
|
9,861 |
|
|
129 |
5.25 |
% |
|
8,850 |
|
|
119 |
5.45 |
% |
|
8,850 |
|
|
115 |
5.16 |
% |
|
8,925 |
|
|
116 |
5.16 |
% |
|
8,737 |
|
|
135 |
6.20 |
% |
|||||||||||||||
| Total interest-earning assets² |
|
1,765,512 |
|
|
17,859 |
4.06 |
% |
|
1,749,630 |
|
|
17,083 |
3.96 |
% |
|
1,856,107 |
|
|
17,606 |
3.76 |
% |
|
1,769,873 |
|
|
17,488 |
3.92 |
% |
|
1,456,474 |
|
|
14,969 |
4.12 |
% |
|||||||||||||||
| NONINTEREST-EARNING ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and due from banks |
|
14,866 |
|
|
13,338 |
|
|
13,318 |
|
|
13,079 |
|
|
10,752 |
|
|||||||||||||||||||||||||||||||||||
| Other noninterest-earning assets |
|
38,621 |
|
|
36,714 |
|
|
37,779 |
|
|
36,548 |
|
|
32,002 |
|
|||||||||||||||||||||||||||||||||||
| Total noninterest-earning assets |
|
53,487 |
|
|
50,052 |
|
|
51,097 |
|
|
49,627 |
|
|
42,754 |
|
|||||||||||||||||||||||||||||||||||
| Less: Allowance for loan losses |
|
(13,126 |
) |
|
(14,200 |
) |
|
(14,849 |
) |
|
(14,958 |
) |
|
(14,899 |
) |
|||||||||||||||||||||||||||||||||||
| TOTAL ASSETS | $ |
1,805,873 |
|
$ |
1,785,482 |
|
$ |
1,892,355 |
|
$ |
1,804,542 |
|
$ |
1,484,329 |
|
|||||||||||||||||||||||||||||||||||
| INTEREST-BEARING DEPOSITS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing demand | $ |
26,781 |
|
$ |
4 |
0.06 |
% |
$ |
27,442 |
|
$ |
3 |
0.04 |
% |
$ |
27,904 |
|
$ |
3 |
0.04 |
% |
$ |
36,670 |
|
$ |
4 |
0.04 |
% |
$ |
13,373 |
|
$ |
2 |
0.06 |
% |
|||||||||||||||
| Money market |
|
308,377 |
|
|
443 |
0.58 |
% |
|
321,694 |
|
|
356 |
0.45 |
% |
|
338,937 |
|
|
401 |
0.47 |
% |
|
312,606 |
|
|
388 |
0.49 |
% |
|
263,845 |
|
|
352 |
0.54 |
% |
|||||||||||||||
| Savings |
|
75,306 |
|
|
59 |
0.31 |
% |
|
76,967 |
|
|
61 |
0.32 |
% |
|
77,057 |
|
|
68 |
0.35 |
% |
|
74,266 |
|
|
71 |
0.38 |
% |
|
43,433 |
|
|
55 |
0.51 |
% |
|||||||||||||||
| Time deposits |
|
523,504 |
|
|
746 |
0.57 |
% |
|
529,421 |
|
|
673 |
0.52 |
% |
|
527,634 |
|
|
674 |
0.51 |
% |
|
542,901 |
|
|
756 |
0.55 |
% |
|
469,000 |
|
|
831 |
0.71 |
% |
|||||||||||||||
| Total interest-bearing deposits |
|
933,968 |
|
|
1,252 |
0.54 |
% |
|
955,524 |
|
|
1,093 |
0.46 |
% |
|
971,532 |
|
|
1,146 |
0.47 |
% |
|
966,443 |
|
|
1,219 |
0.50 |
% |
|
789,651 |
|
|
1,240 |
0.63 |
% |
|||||||||||||||
| Borrowings |
|
50,000 |
|
|
117 |
0.94 |
% |
|
50,000 |
|
|
116 |
0.94 |
% |
|
50,000 |
|
|
119 |
0.94 |
% |
|
50,000 |
|
|
118 |
0.94 |
% |
|
51,539 |
|
|
118 |
0.92 |
% |
|||||||||||||||
| Total interest-bearing liabilities |
|
983,968 |
|
|
1,369 |
0.56 |
% |
|
1,005,524 |
|
|
1,209 |
0.49 |
% |
|
1,021,532 |
|
|
1,265 |
0.49 |
% |
|
1,016,443 |
|
|
1,337 |
0.52 |
% |
|
841,190 |
|
|
1,358 |
0.65 |
% |
|||||||||||||||
| Noninterest-bearing deposits |
|
611,395 |
|
|
574,436 |
|
|
673,154 |
|
|
597,056 |
|
|
459,695 |
|
|||||||||||||||||||||||||||||||||||
| Other liabilities |
|
15,818 |
|
|
16,966 |
|
|
16,425 |
|
|
16,046 |
|
|
13,906 |
|
|||||||||||||||||||||||||||||||||||
| Stockholders' equity |
|
194,692 |
|
|
188,556 |
|
|
181,244 |
|
|
174,997 |
|
|
169,538 |
|
|||||||||||||||||||||||||||||||||||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ |
1,805,873 |
|
$ |
1,785,482 |
|
$ |
1,892,355 |
|
$ |
1,804,542 |
|
$ |
1,484,329 |
|
|||||||||||||||||||||||||||||||||||
| Net interest income² | $ |
16,490 |
$ |
15,874 |
$ |
16,341 |
$ |
16,151 |
$ |
13,611 |
||||||||||||||||||||||||||||||||||||||||
| Net interest spread | 3.50 |
% |
3.47 |
% |
3.27 |
% |
3.40 |
% |
3.47 |
% |
||||||||||||||||||||||||||||||||||||||||
| Effect of noninterest-bearing sources | 0.25 |
% |
0.21 |
% |
0.22 |
% |
0.22 |
% |
0.28 |
% |
||||||||||||||||||||||||||||||||||||||||
| Net interest margin² | 3.75 |
% |
3.68 |
% |
3.49 |
% |
3.62 |
% |
3.75 |
% |
||||||||||||||||||||||||||||||||||||||||
| Cost of deposits | $ |
1,545,363 |
|
$ |
1,252 |
0.32 |
% |
$ |
1,529,960 |
|
$ |
1,093 |
0.29 |
% |
$ |
1,644,686 |
|
$ |
1,146 |
0.28 |
% |
$ |
1,563,499 |
|
$ |
1,219 |
0.31 |
% |
$ |
1,249,346 |
|
$ |
1,240 |
0.40 |
% |
|||||||||||||||
| Cost of funds | $ |
1,595,363 |
|
$ |
1,369 |
0.34 |
% |
$ |
1,579,960 |
|
$ |
1,209 |
0.31 |
% |
$ |
1,694,686 |
|
$ |
1,265 |
0.30 |
% |
$ |
1,613,499 |
|
$ |
1,337 |
0.33 |
% |
$ |
1,300,885 |
|
$ |
1,358 |
0.42 |
% |
|||||||||||||||
1 |
Includes loans held-for-sale |
|
2 |
Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate |
|
FIVE-QUARTER COMPONENTS OF YIELD ON LOANS (Unaudited) - Table 13 |
||||||||||||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
||||||||||||||||||||||||||||
|
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
||||||||||||||||||||
|
|
Amount |
|
Yield |
|
Amount |
|
Yield |
|
Amount |
|
Yield |
|
Amount |
|
Yield |
|
Amount |
|
Yield |
||||||||||
| Contractual yield | $ |
15,496 |
4.47 |
% |
$ |
14,596 |
4.32 |
% |
$ |
15,142 |
4.30 |
% |
$ |
15,032 |
4.29 |
% |
$ |
12,670 |
4.25 |
% |
||||||||||
| SBA discount accretion |
|
1,035 |
0.30 |
% |
|
1,421 |
0.42 |
% |
|
1,024 |
0.29 |
% |
|
1,038 |
0.30 |
% |
|
1,027 |
0.34 |
% |
||||||||||
| Prepayment penalties & late fees |
|
56 |
0.02 |
% |
|
107 |
0.03 |
% |
|
72 |
0.02 |
% |
|
41 |
0.01 |
% |
|
89 |
0.03 |
% |
||||||||||
| Amortization of net deferred costs |
|
56 |
0.01 |
% |
|
228 |
0.07 |
% |
|
655 |
0.19 |
% |
|
689 |
0.20 |
% |
|
552 |
0.19 |
% |
||||||||||
| As reported yield on loans | $ |
16,643 |
4.80 |
% |
$ |
16,352 |
4.84 |
% |
$ |
16,893 |
4.80 |
% |
$ |
16,800 |
4.79 |
% |
$ |
14,338 |
4.81 |
% |
||||||||||
MARGIN ANALYSIS (Unaudited) - Table 14 |
||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Six Months Ended |
||||||||||||||||||
|
|
June 30,2022 |
|
June 30,2021 |
||||||||||||||||
|
|
Avg
|
|
Interest |
|
Yield |
|
Avg
|
|
Interest |
|
Yield |
||||||||
| Number of Days in the Period | ||||||||||||||||||||
| INTEREST-EARNING ASSETS | ||||||||||||||||||||
| Loans¹ | $ |
1,379,540 |
|
$ |
32,995 |
4.82 |
% |
$ |
1,167,180 |
|
$ |
28,175 |
4.87 |
% |
||||||
| Investment securities² |
|
80,752 |
|
|
959 |
2.39 |
% |
|
83,911 |
|
|
890 |
2.14 |
% |
||||||
| Interest-earning deposits at the FRB and other banks |
|
288,018 |
|
|
740 |
0.52 |
% |
|
138,570 |
|
|
90 |
0.13 |
% |
||||||
| Other earning assets |
|
9,358 |
|
|
248 |
5.34 |
% |
|
8,468 |
|
|
232 |
5.52 |
% |
||||||
| Total interest-earning assets² |
|
1,757,668 |
|
|
34,942 |
4.01 |
% |
|
1,398,129 |
|
|
29,387 |
4.24 |
% |
||||||
| NONINTEREST-EARNING ASSETS | ||||||||||||||||||||
| Cash and due from banks |
|
14,106 |
|
|
10,390 |
|
||||||||||||||
| Other noninterest-earning assets |
|
37,674 |
|
|
31,582 |
|
||||||||||||||
| Total noninterest-earning assets |
|
51,780 |
|
|
41,972 |
|
||||||||||||||
| Less: Allowance for loan losses |
|
(13,660 |
) |
|
(14,641 |
) |
||||||||||||||
| TOTAL ASSETS | $ |
1,795,788 |
|
$ |
1,425,460 |
|
||||||||||||||
| INTEREST-BEARING DEPOSITS | ||||||||||||||||||||
| Interest-bearing demand | $ |
27,110 |
|
$ |
7 |
0.05 |
% |
$ |
14,586 |
|
$ |
4 |
0.06 |
% |
||||||
| Money market |
|
314,999 |
|
|
799 |
0.51 |
% |
|
264,845 |
|
|
718 |
0.55 |
% |
||||||
| Savings |
|
76,132 |
|
|
120 |
0.32 |
% |
|
45,845 |
|
|
115 |
0.51 |
% |
||||||
| Time deposits |
|
526,446 |
|
|
1,419 |
0.54 |
% |
|
460,223 |
|
|
1,806 |
0.79 |
% |
||||||
| Total interest-bearing deposits |
|
944,687 |
|
|
2,345 |
0.50 |
% |
|
785,499 |
|
|
2,643 |
0.68 |
% |
||||||
| Borrowings |
|
50,000 |
|
|
233 |
0.94 |
% |
|
58,564 |
|
|
248 |
0.85 |
% |
||||||
| Total interest-bearing liabilities |
|
994,687 |
|
|
2,578 |
0.52 |
% |
|
844,063 |
|
|
2,891 |
0.69 |
% |
||||||
| Noninterest-bearing deposits |
|
593,071 |
|
|
402,119 |
|
||||||||||||||
| Other Liabilities |
|
16,389 |
|
|
12,929 |
|
||||||||||||||
| Stockholders' equity |
|
191,641 |
|
|
166,349 |
|
||||||||||||||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ |
1,795,788 |
|
$ |
1,425,460 |
|
||||||||||||||
| Net interest income² | $ |
32,364 |
$ |
26,496 |
||||||||||||||||
| Net interest spread | 3.49 |
% |
3.55 |
% |
||||||||||||||||
| Effect of noninterest-bearing sources | 0.22 |
% |
0.27 |
% |
||||||||||||||||
| Net interest margin² | 3.71 |
% |
3.82 |
% |
||||||||||||||||
| Cost of deposits | $ |
1,537,758 |
|
$ |
2,345 |
0.31 |
% |
$ |
1,187,618 |
|
$ |
2,643 |
0.45 |
% |
||||||
| Cost of funds | $ |
1,587,758 |
|
$ |
2,578 |
0.33 |
% |
$ |
1,246,182 |
|
$ |
2,891 |
0.47 |
% |
||||||
1 |
Includes loans held-for-sale |
|
2 |
Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate |
|
COMPONENTS OF YIELD ON LOANS (Unaudited) - Table 15 |
||||||||||||
(Dollars in thousands) |
||||||||||||
|
|
|
|
|
|
|
|
|
||||
|
|
Six Months Ended |
||||||||||
|
|
June 30, 2022 |
|
June 30, 2021 |
||||||||
|
|
Amount |
|
Yield |
|
Amount |
|
Yield |
||||
| Contractual yield | $ |
30,092 |
4.40 |
% |
$ |
24,818 |
4.29 |
% |
||||
| SBA discount accretion |
|
2,456 |
0.36 |
% |
|
1,765 |
0.30 |
% |
||||
| Prepayment penalties & late fees |
|
163 |
0.02 |
% |
|
210 |
0.04 |
% |
||||
| Amortization of net deferred costs |
|
284 |
0.04 |
% |
|
1,382 |
0.24 |
% |
||||
| As reported yield on loans | $ |
32,995 |
4.82 |
% |
$ |
28,175 |
4.87 |
% |
||||