COLUMBUS, Ohio, Nov. 7, 2022
/PRNewswire/ -- CF Bankshares Inc. (NASDAQ: CFBK) (the "Company"),
the parent of CFBank, National Association ("CFBank"), today
announced financial results for the third quarter and year to date
(YTD) ended September 30, 2022.
Third Quarter and Year to Date 2022 Highlights
- Net Income of $4.2 million
($0.65 per share) and Core
Earnings of $5.2 million
($0.80 per share). Core
Earnings represent net income adjusted for non-recurring items
totaling $946,000 (after-tax)
for the conversion of our operating platform and fixed asset
impairment. These non-recurring items are detailed in the tables
included with this press release. Core earnings increased
$411,000, when compared to the
previous sequential quarter.
- Return on Average Assets (ROA) was 1.02% and Core Return
on Average Assets was 1.25% for the third quarter, while
Return on Average Equity (ROE) was 12.62% and Core Return on
Average Equity was 15.43%.
- For the first nine months of 2022, Net Income was
$13.5 million ($2.06 per share), ROA was 1.14% and
ROE was 13.74%.
- Net interest margin (NIM) increased 32 bps during the
quarter to 3.36%.
- Book value per share increased to $20.85 at September
30, 2022.
- Net loans and leases grew by $96
million, or 27.8% (annualized), during the
quarter. Net loans and leases totaled $1.5
billion at September 30,
2022.
- During the third quarter, we completed the conversion of our
core processing platform, and recognized one-time conversion
expenses of approximately $500,000
after-tax. These expenses are expected to be earned back over the
life of the contract through reduced data processing charges.
- Credit quality remains strong with loans more than 30 days past
due at 0.09% of total loans. There were no charge-offs
during the quarter and year to date through September 30, 2022.
Recent Developments
- On October 4, 2022, the Company's
Board of Directors declared a Cash Dividend of $0.05 per share payable on October 25, 2022 to shareholders of record as of
the close of business on October 14,
2022.
- In October 2022, we opened two
new banking locations, Ohio City
(Cleveland) and Red Bank (Cincinnati), after opening full-service Retail
branches in Polaris (Columbus,
Ohio) and Indianapolis
earlier this year.
CEO and Board Chair Commentary
Timothy T. O'Dell, President and
CEO, commented: "Operating in the currently challenging and
volatile rate environment, CFBank is continuing to generate quality
growth and business opportunities. Our business model remains
focused on working with strong and high performing businesses and
entrepreneurs.
Core Earnings are expanding, as we add size and scale,
approaching $2 Billion in Total
Assets as the next major threshold target. Through the first three
quarters of 2022, our Total Assets have grown $260 million. Additional earnings lift has also
been provided by interest rate increases and NIM
expansion.
Our Commercial loan pipelines remain strong as we attract
quality new and full-service business banking relationships. We are
pleased with the size and scale of Residential Mortgage Lending,
which is focused on Portfolio lending in our Regional markets. We
made the decision to exit direct-to-consumer (DTC) originations
roughly one year ago, anticipating mortgage market conditions would
continue to become less favorable.
Credit Quality along with Underwriting and Lending standards
remain strong. CFBank, because of our ability to attract quality
loan opportunities, is well positioned in the current market
environment by having only a nominally sized Investment
portfolio.
Going forward, we expect that attracting deposits will continue
to be increasingly challenging. However, we are having successes
with our initiatives for growing Public Fund deposits. Indiana (our most recent regional market
expansion) is proving to be a good deposit generating
market.
In addition, we have expanded our Deposit gathering franchise
recently with this year's addition of four new branch locations in:
Polaris (Columbus), Indianapolis, Ohio
City (Cleveland), and
Red Bank (Cincinnati).
CFBank remains very disciplined with sticking to our proven
fundamentals. Steady as we go.
We believe from experience that market disruption and volatility
will translate into increasing quality business opportunities for
us."
Robert E. Hoeweler, Chairman of
the Board, added: "Our experienced CF Leadership continues to
maintain a strong growth trajectory, guiding our Financial
institution forward prudently during this challenging economic
environment.
We focus on providing financial solutions, coupled with ease of
doing business delivery. Our success results through fostering
mutually beneficial partnerships with our Customers, Communities,
Shareholders and Employees."
Our Best is yet Ahead!
Overview of Results
Net income for the three months ended September 30, 2022 totaled $4.2 million (or $0.65 per diluted common share) compared to net
income of $4.7 million (or
$0.72 per diluted common share) for
the three months ended June 30, 2022
and net income of $4.1 million (or
$0.61 per diluted common share) for
the three months ended September 30,
2021.
Net income for the nine months ended September 30, 2022 totaled $13.5 million (or $2.06 per diluted common share) compared to net
income of $14.0 million (or
$2.10 per diluted common share) for
the nine months ended September 30,
2021.
Net income for the three months ended September 30, 2022 was negatively impacted by
one-time conversion costs of $627,000
pre-tax ($496,000 after tax) and
impairment expense of $570,000
pre-tax ($450,000 after tax) related
to the pending sale of our headquarters building in Worthington as we prepare to move our
headquarters office to New Albany,
Ohio. The conversion costs related to the conversion of our
core processing system. We do not anticipate to incur
material additional costs going forward related to the conversion
of our core processing system.
Net Interest Income and Net Interest Margin
Net interest income totaled $13.3
million for the quarter ended September 30, 2022 and increased $1.8 million, or 15.3%, compared to $11.5 million in the prior quarter, and increased
$2.9 million, or 27.9%, compared to
$10.4 million in the third quarter of
2021.
The increase in net interest income compared to the prior
quarter was primarily due to a $3.3
million, or 22.4%, increase in interest income, partially
offset by a $1.5 million, or 48.4%,
increase in interest expense. The increase in interest income was
primarily attributed to a $68.2
million, or 4.5%, increase in average interest-earning
assets outstanding, coupled with a 66bps increase in average yield
on interest-earning assets. The increase in interest expense
when compared to the prior quarter was attributed to a $47.3 million, or 3.9%, increase in average
interest-bearing liabilities, coupled with a 45bps increase in the
average cost of funds on interest-bearing liabilities. The net
interest margin of 3.36% for the quarter ended September 30, 2022 increased 32bps compared to
the net interest margin of 3.04% for the prior quarter.
The increase in net interest income compared to the third
quarter of 2021 was primarily due to an $5.3
million, or 41.7%, increase in interest income, partially
offset by a $2.4 million, or 104.8%,
increase in interest expense. The increase in interest income was
primarily attributed to a $286.2
million, or 22.1%, increase in average interest-earning
assets outstanding, coupled with a 62bps increase in the average
yield on interest-earning assets. The increase in interest
expense was attributed to a $267.6
million, or 27.3%, increase in average interest-bearing
liabilities, coupled with a 57bps increase in the average cost of
funds on interest-bearing liabilities. The net interest margin of
3.36% for the quarter ended September 30,
2022 increased 15bps compared to the net interest margin of
3.21% for the third quarter of 2021.
Noninterest Income
Noninterest income for the quarter ended September 30, 2022 totaled $705,000 and decreased $103,000, or 12.7%, compared to $808,000 for the prior quarter. The
decrease was primarily due to a $121,000 decrease in the net gain on sales of
residential mortgage loans, partially offset by a $19,000 increase in swap fee income.
Noninterest income for the quarter ended September 30, 2022 decreased $1.4 million, or 66.1%, compared to $2.1 million for the quarter ended September 30, 2021. The decrease was
primarily due to a $1.9 million
decrease in gain on sales of deposits which was recognized in
connection with the sale of our Columbiana County, Ohio branches in Q3
2021. This was partially offset by a $135,000 increase in net gain on sales of
commercial loans and a $55,000
increase in service charges on deposit accounts.
During the second quarter 2022, we exited the DTC mortgage
originations business in favor of portfolio lending in our Regional
markets with servicing retained. There were no loans sold during
the three months ended September 30,
2022. The following table represents the notional amount of
loans sold during the three months ended June 30, 2022, and September 30, 2021.
|
|
|
|
|
|
Three Months
ended
|
|
|
|
|
|
|
June 30,
2022
|
|
September 30,
2021
|
Notional amount of
loans sold
|
|
|
|
|
|
$
|
9,368
|
|
$
|
498,968
|
The following table represents the revenue recognized on
mortgage activities for the three months ended June 30, 2022, and September 30, 2021 (in thousands).
|
Three Months
ended
|
|
June 30,
2022
|
|
September 30,
2021
|
Gain (loss) on loans
sold
|
$
|
(103)
|
|
$
|
6,415
|
Gain (loss) from change
in fair value of loans held-for-sale
|
|
92
|
|
|
(1,916)
|
Gain (loss) from change
in fair value of derivatives
|
|
132
|
|
|
(4,767)
|
|
$
|
121
|
|
$
|
(268)
|
Noninterest Expense
Noninterest expense for the quarter ended September 30, 2022 totaled $8.6 million and increased $2.1 million, or 32.9%, compared to $6.5 million for the prior quarter. The
increase in noninterest expense was primarily due to a $597,000 increase in data processing expense and
a $570,000 impairment of property and
equipment. The increase in data processing expense was primarily
related one-time charges for the conversion of our core processing
system during the third quarter of 2022. The impairment of
property and equipment was related to the pending sale of our
headquarters building in Worthington as we prepare to move our
headquarters office to New Albany,
Ohio.
Noninterest expense for the quarter ended September 30, 2022 increased $1.2 million, or 15.7%, compared to $7.4 million for the quarter ended September 30, 2021. The increase in
noninterest expense was primarily due to a $606,000 increase in data processing expense and
a $570,000 impairment of property and
equipment. As mentioned above, the increase in data processing
expense was primarily related to the conversion of our core
processing system during the third quarter of 2022 and the
impairment of property and equipment was related to the pending
sale of the Worthington
headquarters building.
Income Tax Expense
Income tax expense was $1.0
million for the quarter ended September 30, 2022 (effective tax rate of 19.4%),
compared to $1.2 million for the
prior quarter (effective tax rate of 19.6%) and $985,000 for the quarter ended September 30, 2021 (effective tax rate of
19.5%).
Loans and Loans Held For Sale
Net loans and leases totaled $1.5
billion at September 30, 2022
and increased $95.7 million, or 6.9%,
from the prior quarter and increased $259.7
million, or 21.4%, from December 31,
2021. The increase in net loans during the quarter was
primarily due to a $31.5 million
increase in single-family residential loan balances, a $21.0 million increase in commercial real estate
loan balances, a $19.7 million
increase in multi-family loan balances, a $15.2 million increase in commercial loan
balances, a $6.1 million increase in
construction loan balances, and a $2.6
million increase in home equity lines of credit. The
increases in the aforementioned loan balances were related to
increased sales activity and new relationships.
The increase in net loans from December
31, 2021 was primarily due to a $92.7
million increase in single-family residential loan balances,
a $78.3 million increase in
commercial loan balances, a $46.6
million increase in construction loan balances, a
$20.9 million increase in
multi-family loan balances, a $16.3
million increase in commercial real estate loan balances,
and a $5.3 million increase in home
equity lines of credit. The increases in the aforementioned
loan balances were related to increased sales activity and new
relationships.
The following table presents the recorded investment in loans
and leases for certain non-owner-occupied loan types ($ in
thousands).
|
September 30,
2022
|
|
June 30,
2022
|
|
March 31,
2022
|
Construction - 1-4
family
|
$
|
56,397
|
|
$
|
42,281
|
|
$
|
34,386
|
Construction -
Multi-family
|
|
79,714
|
|
|
56,071
|
|
|
57,363
|
Construction -
Non-residential
|
|
40,744
|
|
|
30,220
|
|
|
35,381
|
Hotel/Motel
|
|
16,976
|
|
|
17,023
|
|
|
17,078
|
Industrial /
Warehouse
|
|
23,658
|
|
|
26,362
|
|
|
27,902
|
Land/Land
Development
|
|
20,996
|
|
|
27,895
|
|
|
29,315
|
Medical/Healthcare/Senior Housing
|
|
495
|
|
|
3,253
|
|
|
3,297
|
Multi-family
|
|
82,939
|
|
|
84,580
|
|
|
60,990
|
Office
|
|
45,070
|
|
|
40,526
|
|
|
41,254
|
Retail
|
|
25,029
|
|
|
26,631
|
|
|
30,630
|
Other
|
$
|
51,655
|
|
$
|
61,089
|
|
$
|
57,186
|
Asset Quality
Nonaccrual loans were $1.0
million, or 0.07%, of total loans at September 30, 2022, an increase of $83,000 from nonaccrual loans at June 30, 2022 and an increase of $7,000 from nonaccrual loans at December 31, 2021. Loans past due more than
30 days totaled $1.3 million at
September 30, 2022 compared to
$716,000 at June 30, 2022 and $3.6
million at December 31,
2021.
The allowance for loan and lease losses (ALLL) totaled
$15.7 million at September 30, 2022 compared to $15.5 million at both June
30, 2022 and December 31,
2021. The ratio of the ALLL to total loans was 1.05% at
September 30, 2022 compared to 1.11%
at June 30, 2022 and 1.26% at
December 31, 2021.
There was $150,000 in provision
for loan and lease losses expense for the quarter ended
September 30, 2022. There was
no provision for loan losses expense for the quarters ended
June 30, 2022 and September 30, 2021. Net recoveries for the
quarter ended September 30, 2022
totaled $5,000 compared to net
recoveries of $12,000 for the prior
quarter and net charge-offs of $8,000
for the quarter ended September 30,
2021.
Deposits
Deposits totaled $1.5 billion at
September 30, 2022, an increase of
$112.5 million, or 8.2%, when
compared to $1.4 billion at
June 30, 2022, and an increase of
$243.6 million, or 19.6%, when
compared to $1.2 billion at
December 31, 2021. The increase
when compared to the prior quarter end is primarily due to a
$103.7 million increase in money
market account balances and a $39.0
million increase in checking account balances, partially
offset by a $30.1 million decrease in
certificate of deposit account balances. The increase when compared
to December 31, 2021 is primarily due
to a $242.0 million increase in money
market account balances and a $15.5
million increase in certificate of deposit account balances,
partially offset by a $12.9 million
decrease in checking account balances. The increase in money
market account balances during the first nine months of 2022 was
primarily driven by several new Public Funds deposit relationships
totaling approximately $147
million. Noninterest-bearing deposit accounts
increased $26.4 million to
$270.9 million from $244.5 million at June 30,
2022, and decreased $14.0
million from $284.9 million at
December 31, 2021.
Borrowings
FHLB advances and other debt totaled $102.8 million at September 30, 2022, an increase of $27.2 million when compared to $75.6 million at June 30,
2022 and an increase of $13.1
million when compared to $89.7
million at December 31, 2021.
The increase when compared to the prior quarter was due to an
increase of $25.0 million in FHLB
advances and an increase of $2.2
million on the Company's line of credit with a third party
financial institution. The increase when compared to
December 31, 2021 was primarily due
to a $15.0 million increase in FHLB
advances, partially offset by net reductions of $1.5 million on the Company's line of credit with
a third party financial institution.
Capital
Stockholders' equity totaled $134.9
million at September 30, 2022,
an increase of $2.2 million, or 1.6%,
from $132.7 million at June 30, 2022. Stockholders' equity
increased $9.6 million, or 7.6%, from
$125.3 million at December 31, 2021. The increase in total
stockholders' equity during the three months ended September 30, 2022 was primarily attributed to
net income, partially offset by a $217,000 other comprehensive loss and share
repurchases of $1.7 million.
The increase in total stockholders' equity during the nine months
ended September 30, 2022 was
primarily attributed to net income, partially offset by share
repurchases of $2.3 million and a
$1.5 million other comprehensive
loss. The other comprehensive loss was the result of the
mark-to-market adjustment of our investment portfolio.
Use of Non-GAAP Financial Measures
This earnings release contains financial information and
performance measures determined by methods other than in accordance
with accounting principles generally accepted in the United States of America (GAAP).
Management uses these "non-GAAP" financial measures in its analysis
of the Company's performance and believes that these non-GAAP
financial measures provide a greater understanding of ongoing
operations and enhance comparability of results with prior periods
and peers. These disclosures should not be viewed as
substitutes for financial measures determined in accordance with
GAAP, nor are they necessarily comparable to non-GAAP performance
measures that may be presented by other companies. Non-GAAP
financial measures included in this earnings release include Core
Earnings, Core Earnings Per Share, Core Return on Average Assets
and Core Return on Average Equity. A reconciliation of these
non-GAAP financial measures to the most directly comparable GAAP
financial measures is included at the end of this earnings release
under the heading "GAAP TO NON-GAAP RECONCILIATION."
About CF Bankshares Inc. and CFBank
CF Bankshares Inc. (the Company) is a holding company that owns
100% of the stock of CFBank, National Association (CFBank). CFBank
is a nationally chartered boutique Commercial bank operating
primarily in Four (4) Major Metro Markets: Columbus, Cleveland, and Cincinnati, Ohio, and Indianapolis, Indiana. The current Leadership
Team and Board recapitalized the Company and CFBank in 2012 during
the financial crisis, repositioning CFBank as a full-service
Commercial Bank model. Since the 2012 recapitalization, CFBank has
achieved a CAGR of nearly 25%.
CFBank focuses on serving the financial needs of closely held
businesses and entrepreneurs, by providing a comprehensive
Commercial, Retail, and Mortgage Lending services presence. In all
regional markets, CFBank provides commercial loans and equipment
leases, commercial and residential real estate loans and treasury
management depository services, residential mortgage lending, and
full-service commercial and retail banking services and
products. CFBank is differentiated by our penchant for
individualized service coupled with direct customer access to
decision-makers, and ease of doing business. CFBank matches the
sophistication of much larger banks, without the bureaucracy.
CFBank ranked #7 on American Banker's listing of Top 200
Publicly Traded Community Banks based on 3-year average return on
equity as of December 31, 2021 and
has been recognized as a Small Cap All-Star performer by
Piper Sandler in 2021, 2020, and
2019. In addition, CFBank was ranked #4 in Performance and #2 in
Growth Strategy by Bank Director magazine based on 2020 performance
and growth.
Additional information about the Company and CFBank is available
at www.CF.Bank
FORWARD LOOKING STATEMENTS
This press release and other materials we have filed or may file
with the Securities and Exchange Commission ("SEC") contain or may
contain forward-looking statements within the meaning of the safe
harbor provisions of the U.S. Private Securities Reform Act of
1995, which are made in good faith by us. Forward-looking
statements include, but are not limited to: (1) projections of
revenues, income or loss, earnings or loss per common share,
capital structure and other financial items; (2) plans and
objectives of the management or Boards of Directors of CF
Bankshares Inc. or CFBank; (3) statements regarding future events,
actions or economic performance; and (4) statements of assumptions
underlying such statements. Words such as "estimate,"
"strategy," "may," "believe," "anticipate," "expect," "predict,"
"will," "intend," "plan," "targeted," and the negative of these
terms, or similar expressions, are intended to identify
forward-looking statements, but are not the exclusive means of
identifying such statements. Various risks and uncertainties
may cause actual results to differ materially from those indicated
by our forward-looking statements, including, without limitation,
impacts from the ongoing COVID-19 pandemic on local, national and
global economic conditions in general and on our industry and
business in particular, including adverse impacts on our customer's
operations, financial condition and ability to repay loans, changes
in interest rates or disruptions in the mortgage market, and
inflationary pressures, and those additional risks detailed from
time to time in our reports filed with the SEC, including those
risk factors identified in "Item 1A. Risk Factors" of Part I
of our Annual Report on Form 10-K filed with SEC for the year ended
December 31, 2021, as supplemented by
the risk factors identified in "Item 1A. Risk Factors" of Part II
of our Quarterly Reports on Form 10-Q filed with the SEC for the
quarters ended March 31, 2022 and
June 30, 2022.
Forward-looking statements are not guarantees of performance or
results. A forward-looking statement may include a statement
of the assumptions or bases underlying the forward-looking
statement. We believe that we have chosen these assumptions
or bases in good faith and that they are reasonable. We
caution you, however, that assumptions or bases almost always vary
from actual results, and the differences between assumptions or
bases and actual results can be material. The forward-looking
statements included in this press release speak only as of the date
hereof. We undertake no obligation to publicly release
revisions to any forward-looking statements to reflect events or
circumstances after the date of such statements, except to the
extent required by law.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands,
except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
Three months
ended
|
|
|
|
Nine months
ended
|
|
|
|
September
30,
|
|
|
|
September
30,
|
|
|
|
2022
|
|
2021
|
|
%
change
|
|
2022
|
|
2021
|
|
%
change
|
Total interest
income
|
$
|
18,006
|
|
$
|
12,703
|
|
42 %
|
|
$
|
45,863
|
|
|
39,221
|
|
17 %
|
Total interest
expense
|
|
4,690
|
|
|
2,290
|
|
105 %
|
|
|
10,228
|
|
|
8,151
|
|
25 %
|
Net interest
income
|
|
13,316
|
|
|
10,413
|
|
28 %
|
|
|
35,635
|
|
|
31,070
|
|
15 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan and
lease losses
|
|
150
|
|
|
-
|
|
n/m
|
|
|
150
|
|
|
(1,600)
|
|
n/m
|
Net interest income
after provision for loan and lease losses
|
|
13,166
|
|
|
10,413
|
|
26 %
|
|
|
35,485
|
|
|
32,670
|
|
9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
charges on deposit accounts
|
|
268
|
|
|
213
|
|
26 %
|
|
|
823
|
|
|
612
|
|
34 %
|
Net gain
on sales of residential mortgage loans
|
|
-
|
|
|
(268)
|
|
n/m
|
|
|
678
|
|
|
5,348
|
|
-87 %
|
Net gain
on sale of commercial loans
|
|
134
|
|
|
(1)
|
|
n/m
|
|
|
277
|
|
|
1,158
|
|
-76 %
|
Swap fee
income
|
|
24
|
|
|
-
|
|
n/m
|
|
|
42
|
|
|
182
|
|
-77 %
|
Gain on
redemption of life insurance
|
|
-
|
|
|
-
|
|
n/m
|
|
|
-
|
|
|
383
|
|
n/m
|
Gain on
sale of deposits
|
|
-
|
|
|
1,893
|
|
-100 %
|
|
|
-
|
|
|
1,893
|
|
n/m
|
Other
|
|
279
|
|
|
240
|
|
16 %
|
|
|
739
|
|
|
682
|
|
8 %
|
Noninterest
income
|
|
705
|
|
|
2,077
|
|
-66 %
|
|
|
2,559
|
|
|
10,258
|
|
-75 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits
|
|
4,112
|
|
|
4,250
|
|
-3 %
|
|
|
11,311
|
|
|
13,410
|
|
-16 %
|
Occupancy
and equipment
|
|
324
|
|
|
254
|
|
28 %
|
|
|
955
|
|
|
835
|
|
14 %
|
Data
processing
|
|
1,126
|
|
|
520
|
|
117 %
|
|
|
2,175
|
|
|
1,580
|
|
38 %
|
Franchise
and other taxes
|
|
178
|
|
|
241
|
|
-26 %
|
|
|
839
|
|
|
723
|
|
16 %
|
Professional fees
|
|
896
|
|
|
959
|
|
-7 %
|
|
|
2,148
|
|
|
3,555
|
|
-40 %
|
Director
fees
|
|
171
|
|
|
156
|
|
10 %
|
|
|
465
|
|
|
466
|
|
0 %
|
Postage,
printing, and supplies
|
|
45
|
|
|
34
|
|
32 %
|
|
|
126
|
|
|
120
|
|
5 %
|
Advertising and marketing
|
|
108
|
|
|
45
|
|
140 %
|
|
|
287
|
|
|
2,572
|
|
-89 %
|
Telephone
|
|
66
|
|
|
65
|
|
2 %
|
|
|
180
|
|
|
191
|
|
-6 %
|
Loan
expenses
|
|
296
|
|
|
99
|
|
199 %
|
|
|
502
|
|
|
187
|
|
168 %
|
Depreciation
|
|
134
|
|
|
108
|
|
24 %
|
|
|
375
|
|
|
311
|
|
21 %
|
FDIC
premiums
|
|
312
|
|
|
476
|
|
-34 %
|
|
|
690
|
|
|
1,095
|
|
-37 %
|
Regulatory
assessment
|
|
70
|
|
|
66
|
|
6 %
|
|
|
201
|
|
|
196
|
|
3 %
|
Other
insurance
|
|
45
|
|
|
45
|
|
0 %
|
|
|
135
|
|
|
113
|
|
19 %
|
Impairment
of property and equipment
|
|
570
|
|
|
-
|
|
n/m
|
|
|
570
|
|
|
-
|
|
n/m
|
Other
|
|
146
|
|
|
111
|
|
32 %
|
|
|
389
|
|
|
311
|
|
25 %
|
Noninterest
expense
|
|
8,599
|
|
|
7,429
|
|
16 %
|
|
|
21,348
|
|
|
25,665
|
|
-17 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
5,272
|
|
|
5,061
|
|
4 %
|
|
|
16,696
|
|
|
17,263
|
|
-3 %
|
Income tax
expense
|
|
1,023
|
|
|
985
|
|
4 %
|
|
|
3,203
|
|
|
3,277
|
|
-2 %
|
Net Income
|
$
|
4,249
|
|
$
|
4,076
|
|
4 %
|
|
$
|
13,493
|
|
$
|
13,986
|
|
-4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
|
0.66
|
|
$
|
0.63
|
|
|
|
$
|
2.11
|
|
$
|
2.14
|
|
|
Diluted earnings per
common share
|
$
|
0.65
|
|
$
|
0.61
|
|
|
|
$
|
2.06
|
|
$
|
2.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares
outstanding - basic
|
|
6,393,531
|
|
|
6,510,504
|
|
|
|
|
6,408,342
|
|
|
6,528,126
|
|
|
Average common shares
outstanding - diluted
|
|
6,547,791
|
|
|
6,657,250
|
|
|
|
|
6,549,691
|
|
|
6,672,314
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
n/m - not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Financial Condition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
Sept
30,
|
|
Jun
30,
|
|
Mar
31,
|
|
Dec
31,
|
|
Sept
30,
|
|
(unaudited)
|
2022
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
198,066
|
|
$
|
154,850
|
|
$
|
168,290
|
|
$
|
166,591
|
|
$
|
68,161
|
|
Interest-bearing
deposits in other financial institutions
|
|
100
|
|
|
100
|
|
|
100
|
|
|
100
|
|
|
100
|
|
Securities available
for sale
|
|
11,436
|
|
|
12,220
|
|
|
13,004
|
|
|
16,347
|
|
|
17,128
|
|
Equity
Securities
|
|
5,000
|
|
|
5,000
|
|
|
5,000
|
|
|
5,000
|
|
|
5,000
|
|
Loans held for
sale
|
|
-
|
|
|
-
|
|
|
8,470
|
|
|
27,988
|
|
|
77,946
|
|
Loans and
leases
|
|
1,489,570
|
|
|
1,393,759
|
|
|
1,296,836
|
|
|
1,229,657
|
|
|
1,139,199
|
|
Less allowance
for loan and lease losses
|
|
(15,687)
|
|
|
(15,532)
|
|
|
(15,520)
|
|
|
(15,508)
|
|
|
(15,487)
|
|
Loans and leases,
net
|
|
1,473,883
|
|
|
1,378,227
|
|
|
1,281,316
|
|
|
1,214,149
|
|
|
1,123,712
|
|
FHLB and FRB
stock
|
|
7,633
|
|
|
7,332
|
|
|
7,326
|
|
|
7,315
|
|
|
6,475
|
|
Premises and equipment,
net
|
|
3,792
|
|
|
6,110
|
|
|
6,032
|
|
|
5,869
|
|
|
3,944
|
|
Other assets held for
sale
|
|
1,930
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Operating lease right
of use assets
|
|
1,499
|
|
|
1,638
|
|
|
1,782
|
|
|
1,925
|
|
|
1,462
|
|
Bank owned life
insurance
|
|
26,189
|
|
|
26,038
|
|
|
25,889
|
|
|
25,743
|
|
|
25,582
|
|
Accrued interest
receivable and other assets
|
|
34,514
|
|
|
27,962
|
|
|
26,986
|
|
|
24,562
|
|
|
25,446
|
|
Total assets
|
$
|
1,764,042
|
|
$
|
1,619,477
|
|
$
|
1,544,195
|
|
$
|
1,495,589
|
|
$
|
1,354,956
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
bearing
|
$
|
270,945
|
|
$
|
244,484
|
|
$
|
253,778
|
|
$
|
284,935
|
|
$
|
243,153
|
|
Interest bearing
|
|
1,219,038
|
|
|
1,133,005
|
|
|
1,045,008
|
|
|
961,417
|
|
|
913,637
|
|
Total deposits
|
|
1,489,983
|
|
|
1,377,489
|
|
|
1,298,786
|
|
|
1,246,352
|
|
|
1,156,790
|
|
FHLB advances and other
debt
|
|
102,803
|
|
|
75,594
|
|
|
83,235
|
|
|
89,727
|
|
|
41,218
|
|
Advances by borrowers
for taxes and insurance
|
|
2,573
|
|
|
1,879
|
|
|
2,078
|
|
|
2,752
|
|
|
1,756
|
|
Operating lease
liabilities
|
|
1,588
|
|
|
1,736
|
|
|
1,889
|
|
|
2,032
|
|
|
1,578
|
|
Accrued interest
payable and other liabilities
|
|
17,311
|
|
|
15,185
|
|
|
14,972
|
|
|
14,513
|
|
|
15,571
|
|
Subordinated
debentures
|
|
14,912
|
|
|
14,903
|
|
|
14,893
|
|
|
14,883
|
|
|
14,874
|
|
Total liabilities
|
|
1,629,170
|
|
|
1,486,786
|
|
|
1,415,853
|
|
|
1,370,259
|
|
|
1,231,787
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
134,872
|
|
|
132,691
|
|
|
128,342
|
|
|
125,330
|
|
|
123,169
|
|
Total liabilities and
stockholders' equity
|
$
|
1,764,042
|
|
$
|
1,619,477
|
|
$
|
1,544,195
|
|
$
|
1,495,589
|
|
$
|
1,354,956
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance
Sheet and Yield Analysis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For Three Months
Ended
|
|
September 30,
2022
|
|
June 30,
2022
|
|
September 30,
2021
|
|
Average
|
|
Interest
|
|
Average
|
|
Average
|
|
Interest
|
|
Average
|
|
Average
|
|
Interest
|
|
Average
|
|
Outstanding
|
|
Earned/
|
|
Yield/
|
|
Outstanding
|
|
Earned/
|
|
Yield/
|
|
Outstanding
|
|
Earned/
|
|
Yield/
|
|
Balance
|
|
Paid
|
|
Rate
|
|
Balance
|
|
Paid
|
|
Rate
|
|
Balance
|
|
Paid
|
|
Rate
|
|
(Dollars in
thousands)
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities (1)
(2)
|
$
|
17,044
|
|
$
|
219
|
|
|
4.64 %
|
|
$
|
17,744
|
|
$
|
221
|
|
|
4.58 %
|
|
$
|
22,312
|
|
$
|
230
|
|
|
4.13 %
|
Loans and leases and
loans held for sale (3)
|
|
1,424,326
|
|
|
16,876
|
|
|
4.74 %
|
|
|
1,327,636
|
|
|
14,042
|
|
|
4.23 %
|
|
|
1,223,868
|
|
|
12,397
|
|
|
4.05 %
|
Other earning
assets
|
|
135,240
|
|
|
813
|
|
|
2.40 %
|
|
|
162,912
|
|
|
364
|
|
|
0.89 %
|
|
|
45,174
|
|
|
21
|
|
|
0.19 %
|
FHLB and FRB
stock
|
|
7,192
|
|
|
98
|
|
|
5.45 %
|
|
|
7,329
|
|
|
78
|
|
|
4.26 %
|
|
|
6,221
|
|
|
55
|
|
|
3.54 %
|
Total interest-earning
assets
|
|
1,583,802
|
|
|
18,006
|
|
|
4.54 %
|
|
|
1,515,621
|
|
|
14,705
|
|
|
3.88 %
|
|
|
1,297,575
|
|
|
12,703
|
|
|
3.92 %
|
Noninterest-earning
assets
|
|
78,222
|
|
|
|
|
|
|
|
|
81,305
|
|
|
|
|
|
|
|
|
81,674
|
|
|
|
|
|
|
Total
assets
|
$
|
1,662,024
|
|
|
|
|
|
|
|
$
|
1,596,926
|
|
|
|
|
|
|
|
$
|
1,379,249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
$
|
1,154,605
|
|
|
3,992
|
|
|
1.38 %
|
|
$
|
1,108,079
|
|
|
2,501
|
|
|
0.90 %
|
|
$
|
912,533
|
|
|
1,777
|
|
|
0.78 %
|
FHLB advances and other
borrowings
|
|
93,397
|
|
|
698
|
|
|
2.99 %
|
|
|
92,612
|
|
|
659
|
|
|
2.85 %
|
|
|
67,853
|
|
|
513
|
|
|
3.02 %
|
Total interest-bearing
liabilities
|
|
1,248,002
|
|
|
4,690
|
|
|
1.50 %
|
|
|
1,200,691
|
|
|
3,160
|
|
|
1.05 %
|
|
|
980,386
|
|
|
2,290
|
|
|
0.93 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities
|
|
279,383
|
|
|
|
|
|
|
|
|
266,812
|
|
|
|
|
|
|
|
|
277,469
|
|
|
|
|
|
|
Total
liabilities
|
|
1,527,385
|
|
|
|
|
|
|
|
|
1,467,503
|
|
|
|
|
|
|
|
|
1,257,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
134,639
|
|
|
|
|
|
|
|
|
129,423
|
|
|
|
|
|
|
|
|
121,394
|
|
|
|
|
|
|
Total liabilities and
equity
|
$
|
1,662,024
|
|
|
|
|
|
|
|
$
|
1,596,926
|
|
|
|
|
|
|
|
$
|
1,379,249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning
assets
|
$
|
335,800
|
|
|
|
|
|
|
|
$
|
314,930
|
|
|
|
|
|
|
|
$
|
317,189
|
|
|
|
|
|
|
Net interest
income/interest rate spread
|
|
|
|
$
|
13,316
|
|
|
3.04 %
|
|
|
|
|
$
|
11,545
|
|
|
2.83 %
|
|
|
|
|
$
|
10,413
|
|
|
2.99 %
|
Net interest
margin
|
|
|
|
|
|
|
|
3.36 %
|
|
|
|
|
|
|
|
|
3.04 %
|
|
|
|
|
|
|
|
|
3.21 %
|
Average
interest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to average
interest-bearing liabilities
|
|
126.91 %
|
|
|
|
|
|
|
|
|
126.23 %
|
|
|
|
|
|
|
|
|
132.35 %
|
|
|
|
|
|
|
|
(1) Average
balance is computed using the carrying value of securities.
Average yield is computed using the historical amortized cost
average balance for available for sale securities.
|
(2) Average
yields and interest earned are stated on a fully taxable equivalent
basis.
|
(3) Average
balance is computed using the recorded investment in loans net of
the ALLL and
includes nonperforming loans.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Financial Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the three
months ended
|
|
At or for the nine
months ended
|
($ in thousands
except per share data)
|
|
Sept
30,
|
|
Jun
30,
|
|
Mar
31,
|
|
Dec
31,
|
|
Sept
30,
|
|
|
September
30,
|
(unaudited)
|
|
2022
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
|
2022
|
|
|
2021
|
Earnings and
Dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
13,316
|
|
$
|
11,545
|
|
$
|
10,774
|
|
$
|
10,969
|
|
$
|
10,413
|
|
$
|
35,635
|
|
$
|
31,070
|
Provision for loan and
lease losses
|
|
$
|
150
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
150
|
|
$
|
(1,600)
|
Noninterest
income
|
|
$
|
705
|
|
$
|
808
|
|
$
|
1,046
|
|
$
|
1,382
|
|
$
|
2,077
|
|
$
|
2,559
|
|
$
|
10,258
|
Noninterest
expense
|
|
$
|
8,599
|
|
$
|
6,472
|
|
$
|
6,277
|
|
$
|
6,796
|
|
$
|
7,429
|
|
$
|
21,348
|
|
$
|
25,665
|
Net Income
|
|
$
|
4,249
|
|
$
|
4,726
|
|
$
|
4,518
|
|
$
|
4,467
|
|
$
|
4,076
|
|
$
|
13,493
|
|
$
|
13,986
|
Basic earnings per
common share
|
|
$
|
0.66
|
|
$
|
0.74
|
|
$
|
0.70
|
|
$
|
0.69
|
|
$
|
0.63
|
|
$
|
2.11
|
|
$
|
2.14
|
Diluted earnings per
common share
|
|
$
|
0.65
|
|
$
|
0.72
|
|
$
|
0.69
|
|
$
|
0.68
|
|
$
|
0.61
|
|
$
|
2.06
|
|
$
|
2.10
|
Dividends declared per
share
|
|
$
|
0.05
|
|
$
|
0.04
|
|
$
|
0.04
|
|
$
|
0.04
|
|
$
|
0.03
|
|
$
|
0.13
|
|
$
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios
(annualized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
1.02 %
|
|
|
1.18 %
|
|
|
1.24 %
|
|
|
1.29 %
|
|
|
1.18 %
|
|
|
1.14 %
|
|
|
1.25 %
|
Return on average
equity
|
|
|
12.62 %
|
|
|
14.61 %
|
|
|
14.32 %
|
|
|
14.50 %
|
|
|
13.43 %
|
|
|
13.74 %
|
|
|
15.96 %
|
Average yield on
interest-earning assets
|
|
|
4.54 %
|
|
|
3.88 %
|
|
|
3.82 %
|
|
|
4.02 %
|
|
|
3.92 %
|
|
|
4.08 %
|
|
|
3.72 %
|
Average rate paid on
interest-bearing liabilities
|
|
|
1.50 %
|
|
|
1.05 %
|
|
|
0.90 %
|
|
|
0.88 %
|
|
|
0.93 %
|
|
|
1.17 %
|
|
|
0.97 %
|
Average interest rate
spread
|
|
|
3.04 %
|
|
|
2.83 %
|
|
|
2.92 %
|
|
|
3.14 %
|
|
|
2.99 %
|
|
|
2.91 %
|
|
|
2.75 %
|
Net interest margin,
fully taxable equivalent
|
|
|
3.36 %
|
|
|
3.04 %
|
|
|
3.13 %
|
|
|
3.36 %
|
|
|
3.21 %
|
|
|
3.17 %
|
|
|
2.94 %
|
Efficiency
ratio
|
|
|
61.33 %
|
|
|
52.39 %
|
|
|
53.10 %
|
|
|
55.02 %
|
|
|
59.48 %
|
|
|
55.89 %
|
|
|
62.10 %
|
Noninterest expense to
average assets
|
|
|
2.07 %
|
|
|
1.62 %
|
|
|
1.72 %
|
|
|
1.97 %
|
|
|
2.15 %
|
|
|
1.81 %
|
|
|
2.30 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital leverage
ratio (1)
|
|
|
10.00 %
|
|
|
10.09 %
|
|
|
11.06 %
|
|
|
11.29 %
|
|
|
11.04 %
|
|
|
10.00 %
|
|
|
11.04 %
|
Total risk-based
capital ratio (1)
|
|
|
12.78 %
|
|
|
13.33 %
|
|
|
14.01 %
|
|
|
14.02 %
|
|
|
14.22 %
|
|
|
12.78 %
|
|
|
14.22 %
|
Tier 1 risk-based
capital ratio (1)
|
|
|
11.65 %
|
|
|
12.13 %
|
|
|
12.76 %
|
|
|
12.77 %
|
|
|
12.97 %
|
|
|
11.65 %
|
|
|
12.97 %
|
Common equity tier 1
capital to risk weighted assets (1)
|
|
|
11.65 %
|
|
|
12.13 %
|
|
|
12.76 %
|
|
|
12.77 %
|
|
|
12.97 %
|
|
|
11.65 %
|
|
|
12.97 %
|
Equity to total assets
at end of period
|
|
|
7.65 %
|
|
|
8.19 %
|
|
|
8.31 %
|
|
|
8.38 %
|
|
|
9.09 %
|
|
|
7.65 %
|
|
|
9.09 %
|
Book value per common
share
|
|
$
|
20.85
|
|
$
|
20.25
|
|
$
|
19.70
|
|
$
|
19.28
|
|
$
|
18.69
|
|
$
|
20.85
|
|
$
|
18.69
|
Tangible book value per
common share
|
|
$
|
20.85
|
|
$
|
20.25
|
|
$
|
19.70
|
|
$
|
19.28
|
|
$
|
18.69
|
|
$
|
20.85
|
|
$
|
18.69
|
Period-end market value
per common share
|
|
$
|
20.62
|
|
$
|
21.00
|
|
$
|
22.30
|
|
$
|
20.53
|
|
$
|
20.45
|
|
$
|
20.62
|
|
$
|
20.45
|
Period-end common
shares outstanding
|
|
|
6,467,278
|
|
|
6,552,020
|
|
|
6,515,927
|
|
|
6,500,248
|
|
|
6,588,343
|
|
|
6,467,278
|
|
|
6,588,343
|
Average basic common
shares outstanding
|
|
|
6,393,531
|
|
|
6,413,884
|
|
|
6,417,881
|
|
|
6,448,896
|
|
|
6,510,504
|
|
|
6,408,342
|
|
|
6,528,126
|
Average diluted common
shares outstanding
|
|
|
6,547,791
|
|
|
6,552,763
|
|
|
6,548,380
|
|
|
6,585,511
|
|
|
6,657,250
|
|
|
6,549,691
|
|
|
6,672,314
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
loans
|
|
$
|
1,004
|
|
$
|
921
|
|
$
|
1,006
|
|
$
|
997
|
|
$
|
1,011
|
|
$
|
1,004
|
|
$
|
1,011
|
Nonperforming loans to
total loans
|
|
|
0.07 %
|
|
|
0.07 %
|
|
|
0.08 %
|
|
|
0.08 %
|
|
|
0.09 %
|
|
|
0.07 %
|
|
|
0.09 %
|
Nonperforming assets to
total assets
|
|
|
0.06 %
|
|
|
0.06 %
|
|
|
0.07 %
|
|
|
0.07 %
|
|
|
0.07 %
|
|
|
0.06 %
|
|
|
0.07 %
|
Allowance for loan and
lease losses to total loans
|
|
|
1.05 %
|
|
|
1.11 %
|
|
|
1.20 %
|
|
|
1.26 %
|
|
|
1.36 %
|
|
|
1.05 %
|
|
|
1.36 %
|
Allowance for loan and
lease losses to nonperforming loans
|
|
|
1562.45 %
|
|
|
1686.43 %
|
|
|
1542.74 %
|
|
|
1555.47 %
|
|
|
1531.85 %
|
|
|
1562.45 %
|
|
|
1531.85 %
|
Net charge-offs
(recoveries)
|
|
$
|
(5)
|
|
$
|
(12)
|
|
$
|
(12)
|
|
$
|
(21)
|
|
$
|
8
|
|
$
|
(29)
|
|
$
|
(65)
|
Annualized net
charge-offs (recoveries) to average loans
|
|
|
0.00 %
|
|
|
0.00 %
|
|
|
0.00 %
|
|
|
(0.01 %)
|
|
|
0.00 %
|
|
|
0.00 %
|
|
|
(0.01 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
1,439,863
|
|
$
|
1,340,330
|
|
$
|
1,254,639
|
|
$
|
1,173,853
|
|
$
|
1,065,069
|
|
$
|
1,346,613
|
|
$
|
1,006,514
|
Assets
|
|
$
|
1,662,024
|
|
$
|
1,596,926
|
|
$
|
1,456,003
|
|
$
|
1,381,158
|
|
$
|
1,379,249
|
|
$
|
1,573,180
|
|
$
|
1,487,855
|
Stockholders'
equity
|
|
$
|
134,639
|
|
$
|
129,423
|
|
$
|
126,199
|
|
$
|
123,232
|
|
$
|
121,394
|
|
$
|
130,889
|
|
$
|
116,830
|
|
(1)
Regulatory capital ratios of CFBank
|
GAAP TO NON-GAAP RECONCILIATION
This press release contains certain non-GAAP disclosures for:
(1) Core Earnings, (2) Core Earnings Per Share, (3) Core Return on
Average Assets and (4) Core Return on Average Equity. The
Company uses these non-GAAP financial measures to provide
meaningful supplemental information regarding the Company's
operations performance and to enhance investors' overall
understanding of such financial performance. Accordingly, we
disclose the non-GAAP measures in addition to the related GAAP
measures of: (1) Net Income, (2) Earnings Per Share (3) Return on
Average Assets and (4) Return on Average Equity.
The table below presents the reconciliation of these GAAP
financial measures to the related non-GAAP financial measures ($
in thousands except per share data):
|
|
|
|
|
|
|
|
|
Core Earnings, Core
Earnings Per Share, Core Return
|
|
|
|
|
|
|
|
|
on Average Assets and
Core Return on Average Equity (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
September
30,
|
|
June 30,
|
|
September
30,
|
|
2022
|
|
2022
|
|
2021
|
Net income
(GAAP)
|
$
|
4,249
|
|
$
|
4,726
|
|
$
|
4,076
|
Conversion
expenses
|
|
627
|
|
|
74
|
|
|
-
|
Impairment of property
and equipment
|
|
570
|
|
|
-
|
|
|
-
|
Gain on sale of
deposits
|
|
-
|
|
|
-
|
|
|
(1,893)
|
Income tax effect of
non-recurring items
|
|
(251)
|
|
|
(16)
|
|
|
398
|
Core earnings
(Non-GAAP)
|
$
|
5,195
|
|
$
|
4,784
|
|
$
|
2,581
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
$
|
0.65
|
|
$
|
0.72
|
|
$
|
0.61
|
Conversion
expenses
|
|
0.10
|
|
|
0.01
|
|
|
-
|
Impairment of property
and equipment
|
|
0.09
|
|
|
-
|
|
|
-
|
Gain on sale of
deposits
|
|
-
|
|
|
-
|
|
|
(0.28)
|
Income tax effect of
non-recurring items
|
|
(0.04)
|
|
|
-
|
|
|
0.06
|
Diluted core earnings
per share (Non-GAAP)
|
$
|
0.80
|
|
$
|
0.73
|
|
$
|
0.39
|
|
|
|
|
|
|
|
|
|
Return on average
assets (a) (GAAP)
|
|
1.02 %
|
|
|
1.18 %
|
|
|
1.18 %
|
Core return on average
assets (b) (Non-GAAP)
|
|
1.25 %
|
|
|
1.20 %
|
|
|
0.75 %
|
|
|
|
|
|
|
|
|
|
Return on average
equity (c) (GAAP)
|
|
12.62 %
|
|
|
14.61 %
|
|
|
13.43 %
|
Core return on average
equity (d) (Non-GAAP)
|
|
15.43 %
|
|
|
14.79 %
|
|
|
8.50 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Annualized net
income divided by average assets
|
|
|
|
|
|
|
|
|
(b) Annualized core
earnings divided by average assets
|
|
|
|
|
|
|
|
|
(c) Annualized net
income divided by average stockholders' equity
|
|
|
|
|
|
|
|
|
(d) Annualized core
earnings divided by average stockholders' equity
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/cf-bankshares-inc-parent-of-cfbank-na-reports-results-for-the-3rd-quarter-of-2022-301669546.html
SOURCE CF Bankshares Inc.