Level One Bancorp, Inc. (“Level One”) (Nasdaq: LEVL) today reported
financial results for the fourth quarter of 2020, which included
net income of $8.4 million, or $1.02 diluted earnings per common
share. This compares to net income of $5.2 million, or $0.67
diluted earnings per common share, in the preceding quarter and
$4.7 million, or $0.60 diluted earnings per common share, in the
fourth quarter of 2019.
Patrick J. Fehring, President and Chief Executive Officer of
Level One, commented, "We are pleased to report strong earnings for
the fourth quarter of 2020. This caps another year of quality
growth at Level One. In 2020, our net income was $20.4 million with
diluted earnings per common share of $2.57. This was an increase of
26.70% over the prior year net income of $16.1 million and a 25.37%
increase over last year's $2.05 diluted earnings per common share.
These results were achieved in the face of an extraordinarily
challenging environment this past year. For their accomplishments
of the past year, I want to recognize the tireless effort of the
Level One team during the pandemic and the related turbulence of
the economy. Highlights of our remarkable year include the
following:
- The successful integration of Ann Arbor State Bank, adding a
great team of bankers and a desirable market to Level One.
- Providing over $410.0 million in Paycheck Protection Program
("PPP") lending to support our clients.
- Increasing mortgage banking activities income by 181.60% to
$22.2 million.
- Improving the efficiency ratio to 62.44%.
- Strengthening our balance sheet with additional capital from
the offering of depositary shares of our Series B preferred
stock.
- Increasing our loan loss reserves by $9.6 million to 1.29% of
total loans and 1.56% of non-PPP loans.
- Increasing total deposits by 72.91%.
- Reducing non-performing assets by $634 thousand from year-end
2019."
He continued, “We are very proud of our entire team that has
helped businesses complete more than 1,000 applications for the
second round of PPP loans in the past two weeks that total $193.6
million. These loans will help many small businesses cope with the
challenges of managing through continued slowdowns in business
activity and government-mandated shutdowns."
He concluded, "We are still in an uncertain, but improving,
economy and maintain cautious optimism about the future while being
cognizant of the continued COVID-19 pandemic concerns. As noted, we
added significant reserves to our loan loss reserves in 2020 that
reflect the challenging headwinds.”
Fourth Quarter 2020 Highlights
- Net income of $8.4 million increased 60.74% from $5.2 million
in the preceding quarter
- Diluted earnings per common share of $1.02 increased 52.24%
compared to $0.67 in the preceding quarter, and 70.00% compared to
$0.60 in the fourth quarter of 2019
- Net interest margin, on a fully taxable equivalent ("FTE")
basis, was 3.27%, compared to 2.80% in the preceding quarter
- Net interest income increased $2.5 million to $19.1 million in
the fourth quarter of 2020, compared to $16.6 million in the
preceding quarter
- Noninterest income decreased $1.0 million to $8.1 million in
the fourth quarter of 2020, compared to $9.1 million in the
preceding quarter
- Provision for loan loss decreased to $1.5 million in the fourth
quarter of 2020, compared to $4.3 million provision expense in the
preceding quarter
- Total assets decreased 0.14% to $2.44 billion at December 31,
2020, compared to $2.45 billion at September 30, 2020
- Total loans decreased 6.53% to $1.72 billion at December 31,
2020, compared to $1.84 billion at September 30, 2020 primarily
driven by PPP loan forgiveness
- Total deposits increased 1.02% to $1.96 billion at December 31,
2020, compared to $1.94 billion at September 30, 2020
- Book value per common share increased 4.49% to $25.14 per
common share at December 31, 2020, compared to $24.06 per common
share at September 30, 2020
- Tangible book value per common share increased 4.75% to $19.63
per common share at December 31, 2020, compared to $18.74 per
common share at September 30, 2020
Net Interest Income and Net Interest Margin
Level One's net interest income increased $2.5 million, or
15.12%, to $19.1 million in the fourth quarter of 2020, compared to
$16.6 million in the preceding quarter, and increased $6.2 million,
or 48.02%, compared to $12.9 million in the fourth quarter of
2019.
Level One’s net interest margin, on a FTE basis, was 3.27% in
the fourth quarter of 2020, compared to 2.80% in the preceding
quarter and 3.56% in the fourth quarter of 2019. The increase in
the net interest margin compared to the preceding quarter was
primarily a result of the forgiveness of $102.4 million of PPP
loans by the U.S. Small Business Administration (“SBA”), which
accelerated the recognition of related fee income, which resulted
in an average yield on PPP loans of 6.21%, net of deferred
fees/costs. Loan yields on non-PPP loans was 4.17% for the fourth
quarter of 2020 compared to 4.35% in the preceding quarter. The
decrease compared to the fourth quarter of 2019 was a result of
lower yields across most interest-earning assets, mostly reflecting
the impact of lower interest rates. Average loan yield decreased 71
basis points to 4.49% for the fourth quarter of 2020 from 5.20% for
the fourth quarter of 2019, primarily due to the target federal
funds rate dropping 150 basis points in March 2020 in response to
the COVID-19 pandemic. The decrease in loan yields was accompanied
by a corresponding decrease in the cost of funds, which declined 99
basis points to 0.78% in the fourth quarter of 2020, compared to
1.77% in the fourth quarter of 2019 primarily due to lower interest
rates paid as a result of revised internal deposit rates, mainly
driven by the decreases in the target federal funds rate. Finally,
during the fourth quarter of 2020, our average cash balances of
$213.5 million, which resulted primarily from excess funding under
the Paycheck Protection Program Liquidity Facility ("PPPLF"),
earned 0.12%, which negatively affected the net interest
margin.
Noninterest Income
Level One's noninterest income decreased $1.0 million, or
11.12%, to $8.1 million in the fourth quarter of 2020, compared to
$9.1 million in the preceding quarter, and increased $3.5 million,
or 76.25%, compared to $4.6 million in the fourth quarter of 2019.
The decrease in noninterest income compared to the preceding
quarter was primarily attributable to a decrease of $434 thousand
in net gains on sales of investment securities, a decrease of $315
thousand in other charges and fees, and a decrease of $298 thousand
in mortgage banking activities. The decrease in net gains on sales
of investment securities was due to fewer sales of investment
securities during the fourth quarter of 2020. The decrease in other
charges and fees was primarily due to a decrease in interest rate
swap fees and lower gains on sale of other real estate owned. The
decrease in the mortgage banking activities income compared to the
third quarter of 2020 was primarily due to $40.1 million lower
residential loan originations held for sale.
The increase in noninterest income year over year was primarily
due to an increase of $4.7 million in mortgage banking activities
partially offset by a decrease of $1.0 million in net gains on
sales of investment securities. The increase in mortgage banking
activities compared to the fourth quarter of 2019 was primarily due
to $71.7 million higher residential loan originations held for sale
and $70.3 million higher residential loans sold primarily as a
result of higher volumes caused by the lower interest rate
environment and the expansion of our mortgage banking department.
The decrease in net gains on sales of securities was due to fewer
securities sold in the fourth quarter of 2020 than in the fourth
quarter of 2019.
Noninterest Expense
Level One's noninterest expense increased $335 thousand, or
2.21%, to $15.5 million in the fourth quarter of 2020, compared to
$15.1 million in the preceding quarter, and increased $4.2 million,
or 36.88%, compared to $11.3 million in the fourth quarter of 2019.
The increase in noninterest expense compared to the preceding
quarter was primarily attributable to an increase of $352 thousand
in salary and employee benefits. The increase in salary and
employee benefits compared to the third quarter of 2020 was
primarily due to increases of $774 thousand in incentive
compensation and $98 thousand in supplemental employee retirement
plan ("SERP") expense as a result of a year-to-date true-up. This
was partially offset by a $605 thousand decrease in mortgage
commissions.
The increase in noninterest expense year over year was mainly
attributable to increases of $3.1 million in salary and employee
benefits, $412 thousand in occupancy and equipment expense, $347
thousand in data processing expense, $284 thousand in FDIC premium
expense, $198 thousand in professional service fees, and $163
thousand in core deposit premium amortization. These increases were
partially offset by a decrease of $220 thousand in acquisition and
due diligence fees. The increase in salary and employee benefits
between the periods was primarily due to increases of $1.3 million
in mortgage commissions expense and $709 thousand in incentive
compensation as well as an increase of 29 full-time equivalent
employees attributable to the acquisition of Ann Arbor State Bank
and organic growth. The increase in occupancy and equipment expense
was primarily attributable to increased building rent and other
expenses related to the addition of the three new branches acquired
with Ann Arbor State Bank, as well as organic growth in the
organization. The increase in FDIC premium expense was primarily
due to the increase in assets related to the acquisition of Ann
Arbor State Bank. The increase in professional service fees was
primarily related to increased residential mortgage volumes as well
as increased audit fees. In addition, as a result of the
acquisition, Level One recorded $3.7 million of core deposit
premiums, leading to the increased amortization expense on core
deposit intangibles compared to the same period in the prior year.
The decrease in acquisition and due diligence fees was primarily
due to the majority of expenses related to the merger with Ann
Arbor State Bank being incurred from the third quarter of 2019 to
the first quarter of 2020.
The efficiency ratio, which is a measure of operating expenses
as a percentage of net interest income and noninterest income, for
the fourth quarter of 2020 was 56.81%, compared to 58.81% for the
preceding quarter and 64.55% in the fourth quarter of 2019. The
decrease in the efficiency ratio year over year was primarily
driven by the additional income provided by the acquisition of Ann
Arbor State Bank without adding a proportional amount of expense as
well as the increase in mortgage banking income net of commissions
as a result of higher loan volumes.
Income Tax Expense
Level One's income tax provision was $1.8 million, or 18.05% of
pretax income, in the fourth quarter of 2020, as compared to $1.1
million, or 17.66% of pretax income, in the preceding quarter and
$975 thousand, or 17.24% of pretax income, in the fourth quarter of
2019.
Loan Portfolio
Total loans were $1.72 billion at December 31, 2020, a decrease
of $120.4 million, or 6.53%, from $1.84 billion at September 30,
2020, and up $495.9 million, or 40.40%, from $1.23 billion at
December 31, 2019. The decrease in total loans compared to
September 30, 2020 was primarily due to a decrease of $122.4
million in our commercial and industrial loan portfolio, $102.4
million of which were PPP loans that were forgiven. The growth in
total loans compared to December 31, 2019 was primarily due to
$290.1 million of PPP loans that were originated during the second
and third quarters of 2020 and new loan growth during the year
ended December 31, 2020. The acquisition of Ann Arbor State Bank
also contributed $224.1 million of loans as of the merger date of
January 2, 2020. The loan growth mentioned above was partially
offset by a net decrease of $18.3 million due to loan payoffs and
lower line of credit usage.
Investment Securities
The investment securities portfolio grew $49.2 million, or
19.41%, to $302.7 million at December 31, 2020, from $253.5 million
at September 30, 2020, and up $121.8 million, or 67.34%, from
$180.9 million at December 31, 2019. The increase in the investment
securities portfolio compared to September 30, 2020 was primarily
due to the purchase of $56.9 million of investment securities,
offset in part by $2.6 million of sales, calls, or maturity of
investment securities. The increase in investment securities
compared to December 31, 2019 was primarily due to the purchase of
$140.1 million of securities between the two dates using the excess
cash balances generated by the payoffs of PPP loans as well as the
acquisition of Ann Arbor State Bank, which contributed $47.4
million of investment securities.
Deposits
Total deposits increased to $1.96 billion at December 31, 2020,
compared to $1.94 billion at September 30, 2020, and increased
$827.9 million, or 72.91%, from $1.14 billion at December 31, 2019.
The growth in deposits compared to December 31, 2019 was primarily
due to $563.1 million of organic deposit growth as a result of
customers increasing their liquidity. In addition, the acquisition
of Ann Arbor State Bank contributed $264.8 million in deposits as
of the merger date of January 2, 2020. Total deposit composition at
December 31, 2020 consisted of 38.03% of demand deposit accounts,
31.57% of savings and money market accounts and 30.40% of time
deposits.
Borrowings
Total debt outstanding was $230.3 million at December 31, 2020,
a decrease of $31.1 million, or 11.90%, from $261.4 million at
September 30, 2020, and down $26.3 million, or 10.25%, from $256.7
million at December 31, 2019. The decrease in debt outstanding
compared to September 30, 2020 was primarily due to a decrease of
$34.1 million in PPPLF Federal Reserve Bank ("FRB") borrowings. The
decrease in total borrowings compared to December 31, 2019 was
primarily due to decreases of $60.0 million in short-term FHLB
advances and $5.0 million in fed funds sold, partially offset by an
increase of $36.2 million in long-term FHLB advances, of which
$11.0 million was acquired through the Ann Arbor State Bank
acquisition.
Asset Quality
Nonaccrual loans were $18.8 million, or 1.09% of total loans, at
December 31, 2020, a decrease of $450 thousand from nonaccrual
loans of $19.3 million, or 1.04% of total loans, at September 30,
2020, and an increase of $287 thousand from nonaccrual loans of
$18.5 million, or 1.51% of total loans, at December 31, 2019.
Level One had no other real estate owned assets at December 31,
2020 and September 30, 2020, compared to $921 thousand at December
31, 2019. Nonperforming assets, consisting of nonaccrual loans and
other real estate owned, as a percentage of total assets were 0.77%
at December 31, 2020, compared to 0.79% at September 30, 2020, and
1.23% at December 31, 2019.
Performing troubled debt restructured loans, which are not
reported as nonaccrual loans but rather as part of impaired loans,
were $978 thousand at December 31, 2020, $1.1 million at September
30, 2020, and $906 thousand at December 31, 2019. Loans to
borrowers who are in financial difficulty and who have been granted
concessions that may include interest rate reductions, forbearance
agreements, and principal deferral or reduction, are categorized as
troubled debt restructured loans. In accordance with bank
regulatory guidance, troubled debt restructurings do not include
short-term modifications made on a good-faith basis in response to
the COVID-19 pandemic to borrowers who were current prior to any
relief. As of December 31, 2020, there were $19.8 million of loans
that remained on a COVID-related deferral of which $11.4 million of
loans had payments deferred greater than six months.
Net chargeoffs in the fourth quarter of 2020 were $496 thousand,
or 0.11% of average loans on an annualized basis, compared to $78
thousand of net chargeoffs, or 0.02% of average loans on an
annualized basis, for the preceding quarter and $181 thousand of
net chargeoffs, or 0.06% of average loans on an annualized basis,
in the fourth quarter of 2019. The increase in net chargeoffs
during the fourth quarter of 2020 compared to the third quarter of
2020 was due primarily to increases of $357 thousand in commercial
loan chargeoffs and $176 thousand in residential loan chargeoffs.
The increase in net chargeoffs year over year was primarily due to
commercial loan chargeoffs.
Level One's provision for loan losses in the fourth quarter of
2020 was a provision expense of $1.5 million, compared to $4.3
million in the preceding quarter and $548 thousand in the fourth
quarter of 2019. The decrease in the provision expense quarter over
quarter was primarily due to a decrease of $1.9 million in general
reserves as a result of a larger reserve increase in the third
quarter of 2020 related to the impact of the COVID-19 pandemic on
the loan portfolio, as well as a $997 thousand decrease in specific
reserves, partially offset by an increase in net chargeoffs of $418
thousand. The increase in the provision expense year over year was
primarily due to an increase in general reserves of $1.3 million as
a result of trends in delinquencies and nonaccrual loans as a
result of the COVID-19 pandemic, as well as an increase of $315
thousand in net chargeoffs. This was partially offset by a $410
thousand decrease in specific reserves. The Company will continue
to evaluate the fluid situation in regard to the COVID-19 pandemic
and will take further action to appropriately record additional
provision for loan losses should there be any indications of a
decrease in the credit quality of our portfolio as a result of the
COVID-19 pandemic.
The allowance for loan losses was $22.3 million, or 1.29% of
total loans, at December 31, 2020, compared to $21.3 million, or
1.15% of total loans, at September 30, 2020, and $12.7 million, or
1.03% of total loans, at December 31, 2019. Excluding $290.1
million and $392.5 million of PPP loans, the allowance for loan
losses as a percentage of total loans was 1.56% in the fourth
quarter of 2020, compared to 1.46% in the preceding quarter (See
section entitled "GAAP Reconciliation of Non-GAAP Financial
Measures" for further details). The allowance for loan losses as a
percentage of total loans increased primarily due to the trends in
delinquencies and nonaccrual loans as well as the stress on the
commercial and industrial and commercial real estate owner occupied
portfolios, primarily in the restaurant and transportation
industries, as a result of the COVID-19 pandemic. As of December
31, 2020, the allowance for loan losses as a percentage of
nonaccrual loans was 118.50%, compared to 110.32% at September 30,
2020, and 68.40% at December 31, 2019. The Company will re-evaluate
the appropriateness of the allowance for loan losses in future
quarters as needed.
Capital
Total shareholders’ equity was $215.3 million at December 31,
2020, an increase of $5.9 million, or 2.80%, compared with $209.5
million at September 30, 2020 primarily as a result of an increase
in retained earnings. Total shareholders' equity increased $44.6
million, or 26.14%, from $170.7 million at December 31, 2019
attributable to the issuance of preferred stock in the third
quarter of 2020 as well as an increase in retained earnings.
Recent Developments
Fourth Quarter Common Stock
Dividend: On December 16, 2020, Level
One’s Board of Directors declared a quarterly cash dividend of
$0.05 per share. This dividend was paid on January 15, 2021, to
stockholders of record at the close of business on December 31,
2020.
First Quarter Preferred Stock Dividend: On
January 20, 2021, Level One’s Board of Directors declared a
quarterly cash dividend of $46.88 per share on its 7.50%
Non-Cumulative Preferred Stock, Series B. Holders of depositary
shares will receive $0.4688 per depositary share. The dividend is
payable on February 15, 2021, to shareholders of record at the
close of business on January 31, 2021.
Level One's Response to the COVID-19
Pandemic: Level One has taken
comprehensive steps to help our customers, team members and
communities during the current COVID-19 pandemic health crisis. For
our customers, we have provided loan payment deferrals and offered
fee waivers, among other actions. We have helped our consumer and
small business customers by deferring loan payments and waiving
fees. From January 18 through January 27, 2021, Level One received
1,044 new PPP loan applications, for a total amount of $193.6
million of funding, of which 756 applications were for loans
$150,000 or below.
We are continuing to enable the vast majority of our main office
team members to work remotely each day. We have also taken
significant actions to help ensure the safety of our team members
whose roles require them to come into the office, which includes
the development, implementation and communication of a
comprehensive return to office plan. We are currently serving
customers through our drive-thrus and by appointment only for
in-person services. We will continue to evaluate this fluid
situation and take additional actions as necessary.
About Level One Bancorp, Inc.
Level One Bancorp, Inc. is the holding company for Level One
Bank, a full-service commercial and consumer bank headquartered in
Michigan with assets of approximately $2.44 billion as of December
31, 2020. It operates sixteen banking centers throughout southeast
Michigan and west Michigan. Level One Bank's success has been
recognized both locally and nationally as the U.S. Small Business
Administration's (SBA) "Community Lender of the Year" and "Export
Finance Lender of the Year" and one of S&P Global's Top 10
"Best-Performing Community Banks" in the nation. Level One's
commercial division provides a menu of products including lines of
credit, term loans, leases, commercial mortgages, SBA loans,
export-import financing, and a full suite of treasury management
and private banking services. The consumer division offers personal
savings and checking accounts and a complete array of consumer loan
products including residential mortgages, home equity loans, auto
loans, and credit card services. Level One Bank offers a variety of
online banking services and a robust mobile banking application for
individuals and businesses. Level One Bank offers the
sophistication of a big bank, the heart of a community bank, and
the spirit of an entrepreneur. For more information, visit
www.levelonebank.com.
Forward-Looking Statements
This release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995
that reflect management’s current views of future events and
operations. These forward-looking statements are based on the
information currently available to the Company as of the date of
this release. Forward-looking statements generally can be
identified by the use of forward-looking terminology such as
"will," "propose," "may," "plan," "seek," "expect," "intend,"
"estimate," "anticipate," "believe," "continue" or similar
technology. It is important to note that these forward-looking
statements are not guarantees of future performance and involve
risk and uncertainties, including, but not limited to, the effects
of the COVID-19 pandemic, including its potential effects on the
economic environment, our customers and our operations, as well as
any changes to federal, state or local government laws, regulations
or orders in connection with the pandemic, the ability of the
Company to implement its strategy and expand its lending
operations, changes in interest rates and other general economic,
business and political conditions, including changes in the
financial markets, changes in benchmark interest rates used to
price loans and deposits including the expected elimination of
LIBOR, as well as other risks described in the Company's filings
with the Securities and Exchange Commission. The Company does not
undertake any obligation to update or revise any forward-looking
statements to reflect changes in assumptions, the occurrence of
unanticipated events, or otherwise.
Summary Consolidated
Financial Information |
|
|
|
|
|
|
|
|
|
(Unaudited) |
As of or for the three months ended, |
(Dollars in thousands, except per share data) |
December 31,2020 |
|
September 30,2020 |
|
June 30,2020 |
|
March 31,2020 |
|
December 31,2019 |
Earnings Summary |
|
|
|
|
|
|
|
|
|
Interest income |
$ |
22,181 |
|
|
$ |
20,245 |
|
|
$ |
20,396 |
|
|
$ |
19,817 |
|
|
$ |
17,366 |
|
Interest expense |
3,075 |
|
|
3,648 |
|
|
4,163 |
|
|
4,997 |
|
|
4,458 |
|
Net interest income |
19,106 |
|
|
16,597 |
|
|
16,233 |
|
|
14,820 |
|
|
12,908 |
|
Provision for loan losses |
1,538 |
|
|
4,270 |
|
|
5,575 |
|
|
489 |
|
|
548 |
|
Noninterest income |
8,110 |
|
|
9,125 |
|
|
7,789 |
|
|
4,690 |
|
|
4,590 |
|
Noninterest expense |
15,461 |
|
|
15,126 |
|
|
15,083 |
|
|
14,562 |
|
|
11,295 |
|
Income before income
taxes |
10,217 |
|
|
6,326 |
|
|
3,364 |
|
|
4,459 |
|
|
5,655 |
|
Income tax provision |
1,844 |
|
|
1,117 |
|
|
643 |
|
|
349 |
|
|
975 |
|
Net income |
$ |
8,373 |
|
|
$ |
5,209 |
|
|
$ |
2,721 |
|
|
$ |
4,110 |
|
|
$ |
4,680 |
|
Preferred stock dividends |
479 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Net income available to common
shareholders |
7,894 |
|
|
5,209 |
|
|
2,721 |
|
|
4,110 |
|
|
4,680 |
|
Net income allocated to
participating securities |
65 |
|
|
40 |
|
|
19 |
|
|
47 |
|
|
50 |
|
Net income attributable to
common shareholders |
$ |
7,829 |
|
|
$ |
5,169 |
|
|
$ |
2,702 |
|
|
$ |
4,063 |
|
|
$ |
4,630 |
|
Per Share
Data |
|
|
|
|
|
|
|
|
|
Basic earnings per common
share |
$ |
1.02 |
|
|
$ |
0.68 |
|
|
$ |
0.35 |
|
|
$ |
0.53 |
|
|
$ |
0.60 |
|
Diluted earnings per common
share |
1.02 |
|
|
0.67 |
|
|
0.35 |
|
|
0.53 |
|
|
0.60 |
|
Diluted earnings per common
share, excluding acquisition and due diligence fees (1) |
1.02 |
|
|
0.67 |
|
|
0.37 |
|
|
0.68 |
|
|
0.63 |
|
Book value per common
share |
25.14 |
|
|
24.06 |
|
|
23.31 |
|
|
22.74 |
|
|
22.13 |
|
Tangible book value per common
share (1) |
19.63 |
|
|
18.74 |
|
|
18.09 |
|
|
17.54 |
|
|
20.86 |
|
Preferred shares outstanding
(in thousands) |
10 |
|
|
10 |
|
|
— |
|
|
— |
|
|
— |
|
Common shares outstanding (in
thousands) |
7,634 |
|
|
7,734 |
|
|
7,734 |
|
|
7,731 |
|
|
7,715 |
|
Average basic common shares
(in thousands) |
7,642 |
|
|
7,675 |
|
|
7,676 |
|
|
7,637 |
|
|
7,632 |
|
Average diluted common shares
(in thousands) |
7,695 |
|
|
7,712 |
|
|
7,721 |
|
|
7,738 |
|
|
7,747 |
|
Selected Period End
Balances |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
2,442,982 |
|
|
$ |
2,446,447 |
|
|
$ |
2,541,696 |
|
|
$ |
1,936,823 |
|
|
$ |
1,584,899 |
|
Securities
available-for-sale |
302,732 |
|
|
253,527 |
|
|
217,172 |
|
|
230,671 |
|
|
180,905 |
|
Total loans |
1,723,537 |
|
|
1,843,888 |
|
|
1,815,353 |
|
|
1,466,407 |
|
|
1,227,609 |
|
Total deposits |
1,963,312 |
|
|
1,943,435 |
|
|
1,821,351 |
|
|
1,470,608 |
|
|
1,135,428 |
|
Total liabilities |
2,227,655 |
|
|
2,236,979 |
|
|
2,361,437 |
|
|
1,761,055 |
|
|
1,414,196 |
|
Total shareholders'
equity |
215,327 |
|
|
209,468 |
|
|
180,259 |
|
|
175,768 |
|
|
170,703 |
|
Total common shareholders'
equity |
191,955 |
|
|
186.098 |
|
|
180,259 |
|
|
175,768 |
|
|
170,703 |
|
Tangible common shareholders'
equity (1) |
149,844 |
|
|
144,963 |
|
|
139,913 |
|
|
135,578 |
|
|
160,940 |
|
Performance and
Capital Ratios |
|
|
|
|
|
|
|
|
|
Return on average assets
(annualized) |
1.35 |
% |
|
0.83 |
% |
|
0.46 |
% |
|
0.87 |
% |
|
1.23 |
% |
Return on average equity
(annualized) |
15.61 |
|
|
10.48 |
|
|
6.02 |
|
|
9.40 |
|
|
10.98 |
|
Net interest margin (fully
taxable equivalent)(2) |
3.27 |
|
|
2.80 |
|
|
2.98 |
|
|
3.42 |
|
|
3.56 |
|
Efficiency ratio (noninterest
expense/net interest income plus noninterest income) |
56.81 |
|
|
58.81 |
|
|
62.79 |
|
|
74.64 |
|
|
64.55 |
|
Dividend payout ratio |
4.90 |
|
|
7.41 |
|
|
14.22 |
|
|
7.52 |
|
|
6.60 |
|
Total shareholders' equity to
total assets |
8.81 |
|
|
8.56 |
|
|
7.09 |
|
|
9.08 |
|
|
10.77 |
|
Tangible common equity to
tangible assets (1) |
6.24 |
|
|
6.03 |
|
|
5.59 |
|
|
7.15 |
|
|
10.22 |
|
Common equity tier 1 to
risk-weighted assets |
9.30 |
|
|
8.83 |
|
|
8.76 |
|
|
8.10 |
|
|
11.72 |
|
Tier 1 capital to
risk-weighted assets |
10.80 |
|
|
10.31 |
|
|
8.76 |
|
|
8.10 |
|
|
11.72 |
|
Total capital to risk-weighted
assets |
14.91 |
|
|
14.39 |
|
|
12.81 |
|
|
11.68 |
|
|
15.99 |
|
Tier 1 capital to average
assets (leverage ratio) |
6.93 |
|
|
7.17 |
|
|
6.21 |
|
|
7.08 |
|
|
10.41 |
|
Asset Quality
Ratios: |
|
|
|
|
|
|
|
|
|
Net charge-offs to average
loans |
0.11 |
% |
|
0.02 |
% |
|
0.34 |
% |
|
0.05 |
% |
|
0.06 |
% |
Nonperforming assets as a
percentage of total assets |
0.77 |
|
|
0.79 |
|
|
0.33 |
|
|
0.89 |
|
|
1.23 |
|
Nonaccrual loans as a percent
of total loans |
1.09 |
|
|
1.04 |
|
|
0.46 |
|
|
1.04 |
|
|
1.51 |
|
Allowance for loan losses as a
percentage of total loans |
1.29 |
|
|
1.15 |
|
|
0.94 |
|
|
0.89 |
|
|
1.03 |
|
Allowance for loan losses as a
percentage of nonaccrual loans |
118.50 |
|
|
110.32 |
|
|
206.37 |
|
|
85.32 |
|
|
68.40 |
|
Allowance for loan losses as a
percentage of nonaccrual loans, excluding allowance allocated to
loans accounted for under ASC 310-30 |
114.95 |
|
|
105.46 |
|
|
195.04 |
|
|
80.34 |
|
|
64.29 |
|
(1) See section entitled "GAAP Reconciliation of Non-GAAP
Financial Measures" below.(2) Presented on a tax equivalent basis
using a 21% tax rate.
Consolidated Balance
Sheets |
|
|
|
|
|
|
As of |
|
December 31, |
|
September 30, |
|
December 31, |
(Dollars in thousands) |
2020 |
|
2020 |
|
2019 |
Assets |
(Unaudited) |
|
(Unaudited) |
|
|
Cash and cash equivalents |
$ |
264,071 |
|
|
$ |
176,486 |
|
|
$ |
103,930 |
|
Securities
available-for-sale |
302,732 |
|
|
253,527 |
|
|
180,905 |
|
Other investments |
14,398 |
|
|
14,398 |
|
|
11,475 |
|
Mortgage loans held for sale,
at fair value |
43,482 |
|
|
60,635 |
|
|
13,889 |
|
Loans: |
|
|
|
|
|
Originated loans |
1,498,458 |
|
|
1,603,893 |
|
|
1,158,138 |
|
Acquired loans |
225,079 |
|
|
239,995 |
|
|
69,471 |
|
Total loans |
1,723,537 |
|
|
1,843,888 |
|
|
1,227,609 |
|
Less: Allowance for loan losses |
(22,297 |
) |
|
(21,254 |
) |
|
(12,674 |
) |
Net loans |
1,701,240 |
|
|
1,822,634 |
|
|
1,214,935 |
|
Premises and equipment,
net |
15,834 |
|
|
15,646 |
|
|
13,838 |
|
Goodwill |
35,554 |
|
|
35,554 |
|
|
9,387 |
|
Other intangible assets,
net |
6,557 |
|
|
5,581 |
|
|
383 |
|
Other real estate owned |
— |
|
|
— |
|
|
921 |
|
Bank-owned life insurance |
18,200 |
|
|
18,083 |
|
|
12,167 |
|
Income tax benefit |
3,686 |
|
|
3,791 |
|
|
1,217 |
|
Interest receivable and other
assets |
37,228 |
|
|
40,112 |
|
|
21,852 |
|
Total assets |
$ |
2,442,982 |
|
|
$ |
2,446,447 |
|
|
$ |
1,584,899 |
|
Liabilities |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest-bearing demand deposits |
$ |
618,677 |
|
|
$ |
632,427 |
|
|
$ |
325,885 |
|
Interest-bearing demand deposits |
127,920 |
|
|
115,395 |
|
|
62,586 |
|
Money market and savings deposits |
619,900 |
|
|
595,471 |
|
|
313,885 |
|
Time deposits |
596,815 |
|
|
600,142 |
|
|
433,072 |
|
Total deposits |
1,963,312 |
|
|
1,943,435 |
|
|
1,135,428 |
|
Borrowings |
185,684 |
|
|
216,809 |
|
|
212,225 |
|
Subordinated notes |
44,592 |
|
|
44,555 |
|
|
44,440 |
|
Other liabilities |
34,067 |
|
|
32,180 |
|
|
22,103 |
|
Total liabilities |
2,227,655 |
|
|
2,236,979 |
|
|
1,414,196 |
|
Shareholders' equity |
|
|
|
|
|
Preferred stock, no par value per share; authorized-50,000 shares;
issued and outstanding-10,000 shares at December 31, 2020 and
September 30, 2020 and 0 at December 31, 2019 |
23,372 |
|
|
23,370 |
|
|
— |
|
Common stock, no par value per share; authorized - 20,000,000
shares; issued and outstanding - 7,633,780 shares at December 31,
2020, 7,734,322 shares at September 30, 2020 and 7,715,491 shares
at December 31, 2019 |
87,615 |
|
|
89,409 |
|
|
89,345 |
|
Retained earnings |
96,158 |
|
|
88,646 |
|
|
77,766 |
|
Accumulated other comprehensive income, net of tax |
8,182 |
|
|
8,043 |
|
|
3,592 |
|
Total shareholders' equity |
215,327 |
|
|
209,468 |
|
|
170,703 |
|
Total liabilities and
shareholders' equity |
$ |
2,442,982 |
|
|
$ |
2,446,447 |
|
|
$ |
1,584,899 |
|
Consolidated
Statements of Income |
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Twelve months ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
(In thousands, except per share data) |
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Interest income |
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
Originated loans, including fees |
$ |
17,439 |
|
|
$ |
15,274 |
|
|
$ |
14,304 |
|
|
$ |
62,069 |
|
|
$ |
56,956 |
|
Acquired loans, including
fees |
3,234 |
|
|
3,456 |
|
|
1,480 |
|
|
14,421 |
|
|
6,375 |
|
Securities: |
|
|
|
|
|
|
|
|
|
Taxable |
747 |
|
|
652 |
|
|
736 |
|
|
2,677 |
|
|
3,509 |
|
Tax-exempt |
592 |
|
|
613 |
|
|
577 |
|
|
2,486 |
|
|
2,305 |
|
Federal funds sold and
other |
169 |
|
|
250 |
|
|
269 |
|
|
986 |
|
|
1,303 |
|
Total interest income |
22,181 |
|
|
20,245 |
|
|
17,366 |
|
|
82,639 |
|
|
70,448 |
|
Interest
Expense |
|
|
|
|
|
|
|
|
|
Deposits |
1,954 |
|
|
2,323 |
|
|
3,725 |
|
|
10,993 |
|
|
16,941 |
|
Borrowed funds |
487 |
|
|
693 |
|
|
418 |
|
|
2,353 |
|
|
1,378 |
|
Subordinated notes |
634 |
|
|
632 |
|
|
315 |
|
|
2,537 |
|
|
1,074 |
|
Total interest expense |
3,075 |
|
|
3,648 |
|
|
4,458 |
|
|
15,883 |
|
|
19,393 |
|
Net interest income |
19,106 |
|
|
16,597 |
|
|
12,908 |
|
|
66,756 |
|
|
51,055 |
|
Provision expense for loan
losses |
1,538 |
|
|
4,270 |
|
|
548 |
|
|
11,872 |
|
|
1,383 |
|
Net interest income
after provision for loan losses |
17,568 |
|
|
12,327 |
|
|
12,360 |
|
|
54,884 |
|
|
49,672 |
|
Noninterest
income |
|
|
|
|
|
|
|
|
|
Service charges on
deposits |
648 |
|
|
616 |
|
|
633 |
|
|
2,446 |
|
|
2,547 |
|
Net gain on sales of
securities |
— |
|
|
434 |
|
|
1,023 |
|
|
1,862 |
|
|
1,174 |
|
Mortgage banking
activities |
6,810 |
|
|
7,108 |
|
|
2,092 |
|
|
22,190 |
|
|
7,880 |
|
Other charges and fees |
652 |
|
|
967 |
|
|
842 |
|
|
3,216 |
|
|
2,610 |
|
Total noninterest income |
8,110 |
|
|
9,125 |
|
|
4,590 |
|
|
29,714 |
|
|
14,211 |
|
Noninterest
expense |
|
|
|
|
|
|
|
|
|
Salary and employee
benefits |
10,214 |
|
|
9,862 |
|
|
7,133 |
|
|
38,304 |
|
|
28,775 |
|
Occupancy and equipment
expense |
1,776 |
|
|
1,678 |
|
|
1,364 |
|
|
6,549 |
|
|
4,939 |
|
Professional service fees |
794 |
|
|
808 |
|
|
596 |
|
|
2,935 |
|
|
1,808 |
|
Acquisition and due diligence
fees |
— |
|
|
17 |
|
|
220 |
|
|
1,654 |
|
|
539 |
|
FDIC premium expense |
397 |
|
|
287 |
|
|
113 |
|
|
1,119 |
|
|
310 |
|
Marketing expense |
247 |
|
|
257 |
|
|
264 |
|
|
956 |
|
|
1,107 |
|
Loan processing expense |
245 |
|
|
263 |
|
|
189 |
|
|
935 |
|
|
661 |
|
Data processing expense |
859 |
|
|
844 |
|
|
512 |
|
|
3,460 |
|
|
2,374 |
|
Core deposit premium
amortization |
192 |
|
|
192 |
|
|
29 |
|
|
768 |
|
|
146 |
|
Other expense |
737 |
|
|
918 |
|
|
875 |
|
|
3,552 |
|
|
3,710 |
|
Total noninterest expense |
15,461 |
|
|
15,126 |
|
|
11,295 |
|
|
60,232 |
|
|
44,369 |
|
Income before income
taxes |
10,217 |
|
|
6,326 |
|
|
5,655 |
|
|
24,366 |
|
|
19,514 |
|
Income tax provision |
1,844 |
|
|
1,117 |
|
|
975 |
|
|
3,953 |
|
|
3,403 |
|
Net income |
8,373 |
|
|
5,209 |
|
|
4,680 |
|
|
20,413 |
|
|
16,111 |
|
Preferred stock dividends |
479 |
|
|
— |
|
|
— |
|
|
479 |
|
|
— |
|
Net income attributable to common
shareholders |
$ |
7,894 |
|
|
$ |
5,209 |
|
|
$ |
4,680 |
|
|
$ |
19,934 |
|
|
$ |
16,111 |
|
Earnings per common
share: |
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
$ |
1.02 |
|
|
$ |
0.68 |
|
|
$ |
0.60 |
|
|
$ |
2.58 |
|
|
$ |
2.08 |
|
Diluted earnings per common share |
$ |
1.02 |
|
|
$ |
0.67 |
|
|
$ |
0.60 |
|
|
$ |
2.57 |
|
|
$ |
2.05 |
|
Cash dividends declared per common share |
$ |
0.05 |
|
|
$ |
0.05 |
|
|
$ |
0.04 |
|
|
$ |
0.20 |
|
|
$ |
0.16 |
|
Weighted average
common shares outstanding—basic |
7,642 |
|
|
7,675 |
|
|
7,632 |
|
|
7,627 |
|
|
7,655 |
|
Weighted average
common shares outstanding—diluted |
7,695 |
|
|
7,712 |
|
|
7,747 |
|
|
7,686 |
|
|
7,770 |
|
Net
Interest Income and Net Interest Margin |
|
|
|
|
|
|
(Unaudited) |
For the three months ended |
|
For the twelve months ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
(Dollars in thousands) |
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Average Balance Sheets: |
|
|
|
|
|
|
|
|
|
Gross loans(1) |
$ |
1,832,912 |
|
|
$ |
1,871,164 |
|
|
$ |
1,204,052 |
|
|
$ |
1,730,470 |
|
|
$ |
1,169,486 |
|
Investment securities: (2) |
|
|
|
|
|
|
|
|
|
Taxable |
182,522 |
|
|
139,237 |
|
|
110,919 |
|
|
138,837 |
|
|
129,274 |
|
Tax-exempt |
92,792 |
|
|
94,526 |
|
|
84,141 |
|
|
96,020 |
|
|
84,392 |
|
Interest earning cash balances |
213,502 |
|
|
259,349 |
|
|
40,965 |
|
|
194,545 |
|
|
38,268 |
|
Other investments |
14,398 |
|
|
12,419 |
|
|
9,110 |
|
|
12,903 |
|
|
8,523 |
|
Total interest-earning assets |
$ |
2,336,126 |
|
|
$ |
2,376,695 |
|
|
$ |
1,449,187 |
|
|
$ |
2,172,775 |
|
|
$ |
1,429,943 |
|
Non-earning assets |
138,989 |
|
|
140,480 |
|
|
74,755 |
|
|
135,229 |
|
|
68,015 |
|
Total assets |
$ |
2,475,115 |
|
|
$ |
2,517,175 |
|
|
$ |
1,523,942 |
|
|
$ |
2,308,004 |
|
|
$ |
1,497,958 |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
123,201 |
|
|
116,285 |
|
|
68,120 |
|
|
115,249 |
|
|
57,480 |
|
Money market and savings deposits |
611,162 |
|
|
513,420 |
|
|
337,046 |
|
|
496,827 |
|
|
314,918 |
|
Time deposits |
601,900 |
|
|
575,179 |
|
|
440,610 |
|
|
573,823 |
|
|
527,605 |
|
Borrowings |
187,399 |
|
|
394,020 |
|
|
132,859 |
|
|
279,949 |
|
|
79,864 |
|
Subordinated notes |
44,569 |
|
|
44,468 |
|
|
19,478 |
|
|
44,490 |
|
|
16,061 |
|
Total interest-bearing liabilities |
$ |
1,568,231 |
|
|
$ |
1,643,372 |
|
|
$ |
998,113 |
|
|
$ |
1,510,338 |
|
|
$ |
995,928 |
|
Noninterest bearing demand deposits |
659,333 |
|
|
640,095 |
|
|
335,532 |
|
|
574,537 |
|
|
321,487 |
|
Other liabilities |
32,990 |
|
|
34,846 |
|
|
19,825 |
|
|
30,787 |
|
|
17,750 |
|
Shareholders' equity |
214,561 |
|
|
198,862 |
|
|
170,472 |
|
|
192,342 |
|
|
162,793 |
|
Total liabilities and shareholders' equity |
$ |
2,475,115 |
|
|
$ |
2,517,175 |
|
|
$ |
1,523,942 |
|
|
$ |
2,308,004 |
|
|
$ |
1,497,958 |
|
|
|
|
|
|
|
|
|
|
|
Yields:
(3) |
|
|
|
|
|
|
|
|
|
Earning Assets |
|
|
|
|
|
|
|
|
|
Gross loans |
4.49 |
% |
|
3.98 |
% |
|
5.20 |
% |
|
4.42 |
% |
|
5.42 |
% |
Investment securities: |
|
|
|
|
|
|
|
|
|
Taxable |
1.63 |
% |
|
1.86 |
% |
|
2.63 |
% |
|
1.93 |
% |
|
2.71 |
% |
Tax-exempt |
3.14 |
% |
|
3.19 |
% |
|
3.27 |
% |
|
3.19 |
% |
|
3.27 |
% |
Interest earning cash balances |
0.11 |
% |
|
0.12 |
% |
|
1.79 |
% |
|
0.24 |
% |
|
2.23 |
% |
Other investments |
2.98 |
% |
|
5.57 |
% |
|
3.66 |
% |
|
4.07 |
% |
|
5.26 |
% |
Total interest earning assets |
3.80 |
% |
|
3.41 |
% |
|
4.79 |
% |
|
3.83 |
% |
|
4.96 |
% |
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
0.19 |
% |
|
0.22 |
% |
|
0.58 |
% |
|
0.28 |
% |
|
0.49 |
% |
Money market and savings deposits |
0.35 |
% |
|
0.43 |
% |
|
1.33 |
% |
|
0.56 |
% |
|
1.43 |
% |
Time deposits |
0.89 |
% |
|
1.18 |
% |
|
2.25 |
% |
|
1.38 |
% |
|
2.30 |
% |
Borrowings |
1.03 |
% |
|
0.70 |
% |
|
1.25 |
% |
|
0.84 |
% |
|
1.73 |
% |
Subordinated notes |
5.66 |
% |
|
5.65 |
% |
|
6.42 |
% |
|
5.70 |
% |
|
6.69 |
% |
Total interest-bearing liabilities |
0.78 |
% |
|
0.88 |
% |
|
1.77 |
% |
|
1.05 |
% |
|
1.95 |
% |
|
|
|
|
|
|
|
|
|
|
Interest
Spread |
3.02 |
% |
|
2.53 |
% |
|
3.02 |
% |
|
2.78 |
% |
|
3.01 |
% |
Net interest
margin(4) |
3.25 |
% |
|
2.78 |
% |
|
3.53 |
% |
|
3.07 |
% |
|
3.57 |
% |
Tax equivalent
effect |
0.02 |
% |
|
0.02 |
% |
|
0.03 |
% |
|
0.03 |
% |
|
0.03 |
% |
Net interest margin on
a fully tax equivalent basis |
3.27 |
% |
|
2.80 |
% |
|
3.56 |
% |
|
3.10 |
% |
|
3.60 |
% |
(1) Includes nonaccrual loans.(2) For presentation in this
table, average balances and the corresponding average rates for
investment securities are based upon historical cost, adjusted for
amortization of premiums and accretion of discounts.(3) Average
rates and yields are presented on an annual basis and includes a
taxable equivalent adjustment to interest income of $140 thousand,
$144 thousand, and $117 thousand on tax-exempt securities for the
three months ended December 31, 2020, September 30, 2020, and
December 31, 2019, respectively, and $574 thousand and $453
thousand for the year ended December 31, 2020 and December 31,
2019, respectively, and using a federal income tax rate of 21%.(4)
Net interest margin represents net interest income divided by
average total interest-earning assets.
Loan
Composition |
|
|
|
|
|
|
|
|
|
|
As of |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(Dollars in thousands) |
2020 |
|
2020 |
|
2020 |
|
2020 |
|
2019 |
Commercial real estate: |
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
Non-owner occupied |
$ |
445,810 |
|
|
$ |
460,708 |
|
|
$ |
451,906 |
|
|
$ |
450,694 |
|
|
$ |
388,515 |
|
Owner-occupied |
275,022 |
|
|
269,481 |
|
|
273,577 |
|
|
278,216 |
|
|
216,131 |
|
Total commercial real
estate |
720,832 |
|
|
730,189 |
|
|
725,483 |
|
|
728,910 |
|
|
604,646 |
|
Commercial and industrial |
685,504 |
|
|
807,923 |
|
|
790,353 |
|
|
469,227 |
|
|
410,228 |
|
Residential real estate |
315,476 |
|
|
304,088 |
|
|
294,041 |
|
|
262,894 |
|
|
211,839 |
|
Consumer |
1,725 |
|
|
1,688 |
|
|
5,476 |
|
|
5,376 |
|
|
896 |
|
Total loans |
$ |
1,723,537 |
|
|
$ |
1,843,888 |
|
|
$ |
1,815,353 |
|
|
$ |
1,466,407 |
|
|
$ |
1,227,609 |
|
Impaired
Assets |
|
|
|
|
|
|
|
|
|
|
As of |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(Dollars in thousands) |
2020 |
|
2020 |
|
2020 |
|
2020 |
|
2019 |
Nonaccrual loans |
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
Commercial real estate |
$ |
7,320 |
|
|
$ |
7,022 |
|
|
$ |
3,649 |
|
|
$ |
3,721 |
|
|
$ |
4,832 |
|
Commercial and industrial |
7,490 |
|
|
8,078 |
|
|
2,377 |
|
|
9,364 |
|
|
11,112 |
|
Residential real estate |
3,991 |
|
|
4,151 |
|
|
2,226 |
|
|
2,124 |
|
|
2,569 |
|
Consumer |
15 |
|
|
15 |
|
|
16 |
|
|
15 |
|
|
16 |
|
Total nonaccrual loans |
18,816 |
|
|
19,266 |
|
|
8,268 |
|
|
15,224 |
|
|
18,529 |
|
Other real estate owned |
— |
|
|
— |
|
|
61 |
|
|
2,093 |
|
|
921 |
|
Total nonperforming assets |
18,816 |
|
|
19,266 |
|
|
8,329 |
|
|
17,317 |
|
|
19,450 |
|
Performing troubled debt
restructurings |
|
|
|
|
|
|
|
|
|
Commercial and industrial |
546 |
|
|
550 |
|
|
549 |
|
|
541 |
|
|
547 |
|
Residential real estate |
432 |
|
|
599 |
|
|
600 |
|
|
599 |
|
|
359 |
|
Total performing troubled debt restructurings |
978 |
|
|
1,149 |
|
|
1,149 |
|
|
1,140 |
|
|
906 |
|
Total impaired assets |
$ |
19,794 |
|
|
$ |
20,415 |
|
|
$ |
9,478 |
|
|
$ |
18,457 |
|
|
$ |
20,356 |
|
|
|
|
|
|
|
|
|
|
|
Loans 90 days or more past due
and still accruing |
$ |
269 |
|
|
$ |
552 |
|
|
$ |
903 |
|
|
$ |
437 |
|
|
$ |
157 |
|
GAAP Reconciliation of Non-GAAP Financial
Measures
Some of the financial measures included in this report are not
measures of financial condition or performance recognized by GAAP.
These non-GAAP financial measures include tangible common
shareholders' equity, tangible book value per common share and the
ratio of tangible common equity to tangible assets, net income and
diluted earnings per common share excluding acquisition and due
diligence fees and allowance for loan loss as a percentage of total
loans, excluding PPP loans. Our management uses these non-GAAP
financial measures in its analysis of our performance, and we
believe that providing this information to financial analysts and
investors allows them to evaluate capital adequacy, as well as
better understand and evaluate the Company’s core financial results
for the periods in question.
The following presents these non-GAAP financial measures along
with their most directly comparable financial measure calculated in
accordance with GAAP:
Tangible
Common Shareholders' Equity, Tangible Common Equity to Tangible
Assets Ratio and Tangible Book Value Per Common Share |
|
As of |
(Dollars in thousands, except per share data) |
December 31,2020 |
|
September 30,2020 |
|
June 30,2020 |
|
March 31, 2020 |
|
December 31,2019 |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
Total shareholders' equity |
$ |
215,327 |
|
|
$ |
209,468 |
|
|
$ |
180,259 |
|
|
$ |
175,768 |
|
|
$ |
170,703 |
|
Less: |
|
|
|
|
|
|
|
|
|
Preferred stock |
23,372 |
|
|
23,370 |
|
|
— |
|
|
— |
|
|
— |
|
Total common shareholders'
equity |
191,955 |
|
|
186,098 |
|
|
180,259 |
|
|
175,768 |
|
|
170,703 |
|
Less: |
|
|
|
|
|
|
|
|
|
Goodwill |
35,554 |
|
|
35,554 |
|
|
35,554 |
|
|
36,216 |
|
|
9,387 |
|
Other intangible assets,
net |
6,557 |
|
|
5,581 |
|
|
4,792 |
|
|
3,974 |
|
|
376 |
|
Tangible common shareholders'
equity |
$ |
149,844 |
|
|
$ |
144,963 |
|
|
$ |
139,913 |
|
|
$ |
135,578 |
|
|
$ |
160,940 |
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding (in
thousands) |
7,634 |
|
|
7,734 |
|
|
7,734 |
|
|
7,731 |
|
|
7,715 |
|
Tangible book value per common
share |
$ |
19.63 |
|
|
$ |
18.74 |
|
|
$ |
18.09 |
|
|
$ |
17.54 |
|
|
$ |
20.86 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
2,442,982 |
|
|
$ |
2,446,447 |
|
|
$ |
2,541,696 |
|
|
$ |
1,936,823 |
|
|
$ |
1,584,899 |
|
Less: |
|
|
|
|
|
|
|
|
|
Goodwill |
35,554 |
|
|
35,554 |
|
|
35,554 |
|
|
36,216 |
|
|
9,387 |
|
Other intangible assets,
net |
6,557 |
|
|
5,581 |
|
|
4,792 |
|
|
3,974 |
|
|
376 |
|
Tangible assets |
$ |
2,400,871 |
|
|
$ |
2,405,312 |
|
|
$ |
2,501,350 |
|
|
$ |
1,896,633 |
|
|
$ |
1,575,136 |
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity to
tangible assets |
6.24 |
% |
|
6.03 |
% |
|
5.59 |
% |
|
7.15 |
% |
|
10.22 |
% |
Adjusted
Income and Diluted Earnings Per Share |
|
Three months ended |
(Dollars in thousands, except per share data) |
December 31,2020 |
|
September 30,2020 |
|
June 30,2020 |
|
March 31, 2020 |
|
December 31,2019 |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
Net income, as reported |
$ |
8,373 |
|
|
$ |
5,209 |
|
|
$ |
2,721 |
|
|
$ |
4,110 |
|
|
$ |
4,680 |
|
Acquisition and due diligence
fees |
— |
|
|
17 |
|
|
176 |
|
|
1,471 |
|
|
220 |
|
Income tax (benefit) expense
(1) |
2 |
|
|
(4 |
) |
|
(34 |
) |
|
(295 |
) |
|
(26 |
) |
Net income, excluding
acquisition and due diligence fees |
$ |
8,375 |
|
|
$ |
5,222 |
|
|
$ |
2,863 |
|
|
$ |
5,286 |
|
|
$ |
4,874 |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share, as
reported |
$ |
1.02 |
|
|
$ |
0.67 |
|
|
$ |
0.35 |
|
|
$ |
0.53 |
|
|
$ |
0.60 |
|
Effect of acquisition and due
diligence fees, net of income tax benefit |
— |
|
|
— |
|
|
0.02 |
|
|
0.15 |
|
|
0.03 |
|
Diluted earnings per common
share, excluding acquisition and due diligence fees |
$ |
1.02 |
|
|
$ |
0.67 |
|
|
$ |
0.37 |
|
|
$ |
0.68 |
|
|
$ |
0.63 |
|
|
|
|
|
|
|
|
|
|
|
(1) Assumes
income tax rate of 21% on deductible acquisition expenses. |
|
|
Allowance
for Loan Loss as a Percentage of Total Loans, Excluding PPP
Loans |
|
As of |
(Dollars in thousands, except per share data) |
December 31,2020 |
|
September 30,2020 |
|
June 30,2020 |
|
March 31, 2020 |
|
December 31,2019 |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
Total loans |
$ |
1,723,537 |
|
|
$ |
1,843,888 |
|
|
$ |
1,815,353 |
|
|
$ |
1,466,407 |
|
|
$ |
1,227,609 |
|
Less: |
|
|
|
|
|
|
|
|
|
PPP loans |
290,135 |
|
|
392,521 |
|
|
388,264 |
|
|
— |
|
|
— |
|
Total loans, excluding PPP
loans |
$ |
1,433,402 |
|
|
$ |
1,451,367 |
|
|
$ |
1,427,089 |
|
|
$ |
1,466,407 |
|
|
$ |
1,227,609 |
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan loss |
$ |
22,297 |
|
|
$ |
21,254 |
|
|
$ |
17,063 |
|
|
$ |
12,989 |
|
|
$ |
12,674 |
|
Allowance for loan loss as a
percentage of total loans |
1.29 |
% |
|
1.15 |
% |
|
0.94 |
% |
|
0.89 |
% |
|
1.03 |
% |
Allowance for loan loss as a
percentage of total loans, excluding PPP loans |
1.56 |
% |
|
1.46 |
% |
|
1.20 |
% |
|
0.89 |
% |
|
1.03 |
% |
Media Contact:
Nicole Ransom
(248) 538-2183
Investor Relations Contact:
Peter Root
(248) 538-2186
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