WALDORF, Md., Jan. 31, 2023 (GLOBE NEWSWIRE) --
The Community Financial Corporation (NASDAQ: TCFC) (the “Company”),
the holding company for Community Bank of the Chesapeake (the
“Bank”), today reported its results of operations for the fourth
quarter and year ended December 31, 2022. Net income for the
three months ended December 31, 2022 of $7.6 million, or $1.35
per diluted common share compared with net income of $7.6 million,
or $1.34 per diluted common share for the third quarter of 2022,
and net income of $6.8 million, or $1.18 per diluted common share
for the quarter ended December 31, 2021. The Company reported
net income for the year ended December 31, 2022 of $28.3
million, or $5.00 per diluted common share compared to a net income
of $25.9 million, or $4.47 per diluted common share for the year
ended December 31, 2021.
Fourth
Quarter 2022
Highlights
- Announced Merger of Equals
with Shore Bancshares, Inc.: On December 14, 2022, the
Company entered into a definitive agreement to undertake a merger
of equals pursuant to which the Company and Bank will merge into
Shore Bancshares, Inc. (NASDAQ: SHBI) ("Shore") in an all-stock
transaction. The combined company will have total assets of
approximately $6.0 billion on a pro forma basis. Under the
terms of the agreement, which was unanimously approved by the
boards of directors of both companies and which remains subject to
shareholder and regulatory approval, as well as the satisfaction of
customary closing conditions, holders of TCFC common stock will
have the right to receive 2.3287 shares of Shore Bancshares, Inc.
common stock. The merger is expected to close in the late second
quarter or early third quarter of 2023. James M. Burke, The
Community Financial Corporation's current President and Chief
Executive Officer, will serve as President and Chief Executive
Officer of the combined company.
The Company incurred $1.0 million of merger and acquisition
costs during the year ended December 31, 2022 related to the
transaction and anticipates additional expenses in 2023 related to
the transaction.
-
Record Earnings Per Share: Net income totaled $7.6
million for the quarter ended December 31, 2022, or $1.35 per
diluted common share compared to net income of $6.8 million or
$1.18 per diluted common share for the quarter ended
December 31, 2021 and $7.6 million or $1.34 per diluted common
share for the quarter ended September 30, 2022.
Return on average assets ("ROAA") and return on average common
equity ("ROACE") were 1.28% and 16.61% for the three months ended
December 31, 2022 compared to 1.18% and 13.00% for the three
months ended December 31, 2021 and 1.31% and 15.97% for the
three months ended September 30, 2022.
- Impact of Merger & Acquisition Costs and Sale of
Equity Investment: During the fourth quarter of 2022, the
Company incurred $1.0 million in merger related costs and
recognized a gain of $0.7 million on the sale of its equity
investment in Infinex Financial Holdings, Inc. (“Infinex”). The net
impact of these events for the three months ended December 31,
2022 was a decrease to EPS of $0.05 per diluted share and a
decrease to ROAA of five basis points. The resulting non-GAAP
diluted EPS and non-GAAP ROAA were $1.40 and 1.33%,
respectively.
Subsequent to the purchase of Infinex by Advisor Group, the Bank
continues to use Infinex as its broker of record for its wealth
division.
-
Expanding Net Interest Margin: Net interest margin
increased to 3.64% for the quarter ended December 31, 2022
from 3.47% for the third quarter of 2022. Loan and overall
interest-earning asset yields increased 46 and 61 basis points to
4.92% and 4.50% in the fourth quarter of 2022 from 4.46% and 3.89%
for the three months ended September 30, 2022. The Company's
cost of funds increased 46 basis points for the comparable three
month period from 0.43% to 0.89%.
The loan portfolio is positioned for rising rates with $442.8
million or 24% of net portfolio loans scheduled to reprice monthly
or in the next three months and an additional $108.5 million or 6%
repricing in the following nine months. The Bank's effective
duration on the loan portfolio was 2.0 years at December 31,
2022. If the Federal Open Market Committee ("FOMC") slows or pauses
interest rate increases, the Company expects modest margin
compression to occur as deposit rates begin to normalize in a more
stable environment.
-
Solid Loan Growth: Gross portfolio loans increased
to $1,821.1 million, an increase of $77.8 million or 17.9%
annualized, compared to the prior quarter. Portfolio loans
increased $242.3 million or 15.3% during the year ended
December 31, 2022. The loan pipeline at December 31, 2022
was $100.0 million compared to $192.0 million at
September 30, 2022.
Management anticipates moderate 2023 loan growth of between six and
eight percent. Goals for lenders and business development teams
have been further aligned to build on 2022 progress in acquiring
customer operating deposit accounts. More modest loan goals in the
current interest rate environment should contribute to building
franchise-enhancing relationships with customers while mitigating
potential margin compression from the use of more costly non-core
funding sources.
-
Deposits and Funding: During 2022, the Bank
increased noninterest-bearing accounts by $184.3 million to $630.1
million or 30.17% of deposits at December 31, 2022 from 21.68%
of deposits at December 31, 2021. Total deposits increased
$32.3 million in 2022 from $2,056.2 million at December 31,
2021 to $2,088.5 million at December 31, 2022. The stability
in deposit balances coupled with significant loan growth required
the Bank to use wholesale funding in the fourth quarter. The Bank's
deposit cycle generally sees deposit balances decrease in the first
and fourth quarters as business customers and municipalities use
funds for operating needs and build in the second and third
quarters.
At December 31, 2022, the Company had wholesale funding, which
includes brokered deposits and Federal Home Loan Bank advances, of
$133.5 million compared to $20.2 million at December 31,
2021.
- Stable
Asset Quality: Non-accrual loans, OREO and TDRs were $6.5
million or 0.27% of total assets at December 31, 2022 compared
to $6.7 million or 0.28% of total assets and $8.1 million or 0.35%
of total assets at September 30, 2022 and December 31,
2021, respectively. Classified assets increased $0.9 million to
$6.1 million at December 31, 2022 from $5.2 million at
December 31, 2021. The Company had no COVID-19 deferred loans
at December 31, 2022.
Management
Commentary
"The fourth quarter capped a transformational
year at Community Financial,” stated James M. Burke, President and
Chief Executive Officer of The Community Financial Corporation.
“Record earnings in each quarter combined for record annual
performance. Investments in our business and continued expansion
into Virginia fueled both growth and increased profitability. Our
high-quality deposit franchise, while not immune from the recent
increases in rates, continues to be a key differentiator that
drives shareholder value.”
Burke continued, “In the fourth quarter, we took
a major step forward in our strategic vision agreeing to a merger
of equals with Shore Bancshares. This strategic combination is
expected to enhance long-term shareholder value and help us better
serve the communities in which we live and work. Community
Financial and Shore Bancshares, Inc. share similar cultures and
visions for the future. By achieving greater scale, we will be
positioned to help existing and new customers with higher loan
limits and enhanced services, increase investment in technology,
and offer expanded career opportunities to our employees.”
Results of Operations
|
|
(UNAUDITED) |
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
|
|
(dollars in thousands) |
|
|
2022 |
|
|
|
2021 |
|
|
$ Change |
|
% Change |
Interest and dividend income |
|
$ |
25,252 |
|
|
$ |
17,778 |
|
|
$ |
7,474 |
|
|
42.0 |
% |
Interest expense |
|
|
4,821 |
|
|
|
897 |
|
|
|
3,924 |
|
|
437.5 |
% |
Net interest income |
|
|
20,431 |
|
|
|
16,881 |
|
|
|
3,550 |
|
|
21.0 |
% |
Provision for credit
losses |
|
|
868 |
|
|
|
— |
|
|
|
868 |
|
|
— |
% |
Provision for unfunded
commitments |
|
|
145 |
|
|
|
— |
|
|
|
145 |
|
|
— |
% |
Noninterest income |
|
|
2,289 |
|
|
|
2,290 |
|
|
|
(1 |
) |
|
— |
% |
Noninterest expense |
|
|
11,390 |
|
|
|
10,179 |
|
|
|
1,211 |
|
|
11.9 |
% |
Income before income
taxes |
|
|
10,317 |
|
|
|
8,992 |
|
|
|
1,325 |
|
|
14.7 |
% |
Income tax expense |
|
|
2,702 |
|
|
|
2,241 |
|
|
|
461 |
|
|
20.6 |
% |
Net income |
|
$ |
7,615 |
|
|
$ |
6,751 |
|
|
$ |
864 |
|
|
12.8 |
% |
|
|
(UNAUDITED) |
|
|
|
|
|
|
Years Ended December 31, |
|
|
|
|
(dollars in thousands) |
|
|
2022 |
|
|
|
2021 |
|
|
$ Change |
|
% Change |
Interest and dividend income |
|
$ |
82,707 |
|
|
$ |
70,559 |
|
|
$ |
12,148 |
|
|
17.2 |
% |
Interest expense |
|
|
9,182 |
|
|
|
4,125 |
|
|
|
5,057 |
|
|
122.6 |
% |
Net interest income |
|
|
73,525 |
|
|
|
66,434 |
|
|
|
7,091 |
|
|
10.7 |
% |
Provision for credit
losses |
|
|
2,437 |
|
|
|
586 |
|
|
|
1,851 |
|
|
315.9 |
% |
Provision for unfunded
commitments |
|
|
146 |
|
|
|
— |
|
|
|
146 |
|
|
— |
% |
Noninterest income |
|
|
6,393 |
|
|
|
7,906 |
|
|
|
(1,513 |
) |
|
(19.1 |
)% |
Noninterest expense |
|
|
39,434 |
|
|
|
39,152 |
|
|
|
282 |
|
|
0.7 |
% |
Income before income
taxes |
|
|
37,901 |
|
|
|
34,602 |
|
|
|
3,299 |
|
|
9.5 |
% |
Income tax expense |
|
|
9,584 |
|
|
|
8,716 |
|
|
|
868 |
|
|
10.0 |
% |
Net income |
|
$ |
28,317 |
|
|
$ |
25,886 |
|
|
$ |
2,431 |
|
|
9.4 |
% |
Net Interest Income
Net interest income for the comparable quarters
increased primarily from increases in interest-earning asset yields
and growth in loans partially offset by increased interest expense
from higher funding costs. Net interest margin of 3.64% for the
three months ended December 31,
2022 increased 42 basis points from 3.22% for the
three months ended December 31, 2021 and increased 17
basis points from 3.47% for the three months ended
September 30, 2022. Net interest margin expanded during the
fourth quarter of 2022, primarily due to average yields on loans
and investment securities (not including interest-bearing deposits)
increasing to 4.92% and 2.95% for the three months ended
December 31, 2022 from 4.46% and 2.02% for the three months
ended September 30, 2022. Interest income from the Company's
participation in the U.S. Small Business Administration Paycheck
Protection Program ("PPP") was $34,000 and $0.8 million for the
three months ended December 31, 2022 and December 31,
2021, respectively and $0.2 million for the three months ended
September 30, 2022.
Net interest income increased for the year ended
December 31, 2022 compared to the year ended December 31,
2021 due primarily to growth in loans and increases in investment
and loan yields. Loan yields increased due to the re-pricing of the
Bank's adjustable rate portfolios as well as a change in the mix of
loans from lower yielding PPP loans to higher yielding commercial
real estate loans. Increases to net interest income were partially
offset by increased interest expense from higher funding costs.
Loan interest income increased $7.3 million to $72.7 million for
the year ended December 31, 2022 from $65.5 million for
the year ended December 31, 2021. Excluding PPP interest
income, for the comparable periods loan interest income increased
$11.5 million. Net interest margin of 3.38% for the year ended
December 31, 2022 was four basis points higher than the 3.34%
for the year ended December 31, 2021. PPP loan interest
positively impacted margins by four basis points for the year ended
December 31, 2022 and 13 basis points for the year ended
December 31, 2021.
The Company’s cost of funds was 0.89% during the
fourth quarter of 2022 compared to 0.43% for the prior quarter and
increased from 0.17% for the three months ended December 31,
2021. The Bank's interest rate asset sensitivity has improved in
2022, as average non-interest bearing ("NIB") deposit accounts have
increased. For the fourth quarter of 2022 total average NIB
deposits increased to 30.2% compared to 22.2% for the comparable
period in 2021. The Company’s cost of funds was 0.43% during the
year ended December 31, 2022 compared to 0.21% for the year
ended December 31, 2021.
Management anticipates that net interest margins
will contract slightly in the first quarter of 2023 as deposit
betas are likely to increase due to more aggressive competition for
funding. The average cost of deposits increased 52 basis points
from 0.44% for the month of September 30, 2022 to 0.96% for
the month of December 31, 2022. Higher beta municipal
relationships were the main driver of increased deposit rates
through the fourth quarter of 2022. As expected, deposit rates
increased for commercial and retail customers during the fourth
quarter of 2022. For the same comparative periods, average
interest-earning asset yields increased 65 basis points from 4.01%
to 4.66%.
Noninterest Income
Noninterest income was flat at $2.3 million for
the three months ended December 31, 2022 compared to the
three months ended December 31, 2021. The similar
performance for the comparable periods was due to decreases in loan
appraisal charges and interest rate protection referral fee income
offset by a gain on the sale of the Bank's equity investment in
Infinex during the fourth quarter of 2022. Noninterest income as a
percentage of average assets was 0.39% and 0.40%, respectively, for
the three months ended December 31, 2022 and 2021.
Noninterest income decreased $1.5 million for
the year ended December 31, 2022 compared to the year ended
December 31, 2021. The decrease was primarily due to gains of
$0.6 million on the sale of investment securities in 2021 and
a $1.4 million decrease in interest rate protection referral
fee income. In addition, unrealized losses on equity securities
increased $0.4 million. These reductions for the comparable
periods were partially offset by $0.1 million in increased
service charge income, a $0.7 million gain on the sale of the
Bank's equity investment in Infinex, and a $0.4 million
increase in noninterest income related to the sale of impaired
loans. In the first quarter of 2021, the Bank sold non-accrual and
classified commercial real estate and residential mortgage loans
and recognized a loss on the sale of $0.2 million, and in the
second quarter of 2022, impaired loan sales resulted in a gain of
$0.2 million. Noninterest income as a percentage of assets was
0.27% and 0.36%, respectively, for the year ended December 31,
2022 and 2021.
Noninterest
Expense
Noninterest expense of $11.4 million for the
three months ended December 31, 2022, increased $1.2 million
or 11.90% compared to the three months ended December 31, 2021
primarily due to $1.0 million in merger and acquisition costs
and increased compensation and benefits of $0.3 million.
Compensation and benefits increased in the second half of 2022 due
to increased incentive compensation resulting from improvements in
profitability as well as the Company's decision in the second
quarter of 2022 to increase base compensation by 4% and its minimum
starting wage to $20.00 per hour for non-executive employees to
address local wage pressure caused by inflation and to attract and
retain our employees.
In addition, for the comparable periods,
occupancy expense increased $0.2 million and fraud expense
increased $0.2 million. During 2022, data processing, professional
fees, and occupancy costs increased substantially compared to the
prior year due in large part to the increased cost of labor and
materials due to inflation. Additionally, the occupancy costs
increased during the second half of 2022 with the opening of a new
branch in Fredericksburg - Harrison Crossing, Virginia. These
increases were partially offset by a decrease of $0.8 million in
OREO expense recognized in the fourth quarter of 2021. The Company
had no OREO balances for the year ended December 31, 2022.
Noninterest expense increased $0.3 million or
0.7% to $39.4 million for the year ended December 31, 2022
compared to the year ended December 31, 2021. The increase in
noninterest expense for the comparable periods was primarily due to
increased expenses for occupancy, merger and acquisition costs,
data processing and professional fees. These increases to
noninterest expense were partially offset by decreased
compensation, fraud losses and OREO expenses.
Compensation and benefits were lower for the
comparative periods due to lower health insurance claims, a lower
average FTE count than the prior year and lower deferred
compensation accruals. In addition, compensation and benefits
expense has benefited from the Company's increased use of
technology.
Noninterest expense in 2021 included a
$1.3 million initial expense and subsequent recovery of $0.2
million related to an isolated wire transfer fraud incident. Our
investigation determined that no information systems of the Bank
were compromised, and no employee fraud was involved. Excluding the
impact of the $1.1 million isolated fraud losses and the
$0.3 million in PPP deferred costs, the Company's noninterest
expense was $38.3 million for year ended December 31, 2021.
OREO expense for the year ended December 31, 2021 decreased
$1.5 million. The Company had no OREO balances for the year ended
December 31, 2022.
The Company’s efficiency ratio was 50.13% and
49.34% for the three months and year ended December 31, 2022
compared to 53.10% and 52.67% for the three months and year ended
December 31, 2021. The efficiency ratios have improved
(decreased) as the Company has been able to generate more net
interest income and noninterest income while controlling expense
growth. Excluding merger and acquisition costs and core deposit
intangible amortization, the Company's efficiency ratio was 46.80%
and 48.02% for the three months and year ended December 31,
2022 compared to 52.50% and 52.00% for the three months and year
ended December 31, 2021.
Income Tax Expense
The effective tax rate for the three months and
year ended December 31, 2022 was 26.2% and 25.3%. The
effective tax rate was 24.9% and 25.2% for the three months and
year ended December 31, 2021.
Balance Sheet
Assets
Total assets increased $82.7 million, or 3.6%,
to $2.41 billion at December 31, 2022 compared to total assets
of $2.33 billion at December 31, 2021, primarily due to net
loan growth. Cash decreased a net of $114.2 million and was used to
fund net loan growth of $211.7 million. Available for sale ("AFS")
debt securities, which are reported at fair value, decreased $35.1
million to $462.7 million, primarily due to unrealized losses from
rising interest rates during 2022. In addition, deferred tax assets
increased $15.6 million to $24.7 million primarily due to increases
in unrealized losses of the Bank's AFS investment portfolio related
to changes in interest rates. Deferred tax assets also increased
due to the adoption of the current expected credit losses ("CECL")
accounting standard on January 1, 2022.
During the fourth quarter of 2022, total net
loans increased 17.7% annualized or $76.1 million from $1,722.5
million at September 30, 2022 to $1,798.5 million at
December 31, 2022. The Company's loan pipeline was $100.0
million at December 31, 2022. Non-owner occupied commercial
real estate as a percentage of risk-based capital at
December 31, 2022 and December 31, 2021 were $1,032.6
million or 381% and $813.0 million or 331%, respectively.
Construction loans as a percentage of risk-based capital at
December 31, 2022 and December 31, 2021 were $135.0
million or 50% and $140.4 million or 57%, respectively.
Funding
Total deposits increased $32.3 million
or 1.6% to $2,088.5 million at December 31, 2022 compared
to $2,056.2 million at December 31, 2021. The increase
included increases of $12.7 million to transaction deposits and
$19.6 million to time deposits. Non-interest-bearing demand
deposits increased $184.3 million or 41.35% at December 31,
2022, representing 30.17% of deposits, compared to 21.68% of
deposits at December 31, 2021. The Company's
business development efforts continue to focus on increasing
non-interest bearing and lower cost transaction accounts.
At December 31, 2022, the Company had
wholesale funding, which includes brokered deposits and FHLB
advances, of $133.5 million compared to $20.2 million at
December 31, 2021.
Stockholders' Equity and Regulatory
Capital
During the year ended December 31, 2022,
total stockholders’ equity decreased $21.1 million. The decrease in
equity was primarily due to an increase of $41.1 million in
accumulated other comprehensive loss ("AOCL") related to the Bank's
AFS securities portfolio due to changes in market interest rates.
In addition, equity decreased due to common dividends paid of $3.8
million, stock repurchases of $3.6 million, and $2.0 million for
the adoption of the CECL accounting standard on January 1,
2022. Decreases in equity were partially offset by net income of
$28.3 million and stock-based compensation and ESOP activity of
$1.0 million.
The Company's common equity to assets ratio
decreased to 7.76% at December 31, 2022 from 8.94% at
December 31, 2021. The Company’s ratio of tangible common
equity ("TCE") to tangible assets decreased to 7.32%
at December 31, 2022 from 8.48%
at December 31, 2021 (see Non-GAAP reconciliation
schedules) due primarily to increases in AOCL. Regulatory capital
was not impacted by the increase in AOCL and Tier 1 capital to
average asset ratios at the Company remained strong at 9.60% at
December 31, 2022 compared to 9.23% at December 31,
2021.
On December 9, 2021, the Company announced its
Board of Directors approved the resumption of repurchases allowed
under the stock repurchase plan originally adopted in October 2020
(the "2020 Repurchase Plan"). The Company was permitted to
repurchase up to the 99,450 shares remaining under the 2020
Repurchase Plan using up to $4.0 million in the aggregate and
up to $1.5 million in the aggregate on a quarterly basis.
During the third quarter of 2022, the Company repurchased 13,647
shares at an average price of $37.11 per share and completed its
authorization under the 2020 Repurchase Plan.
Asset Quality
Allowance for credit losses
("ACL") and
provision for credit losses
("PCL")1;
Allowance for Loan Losses
("ALLL") and
provision for loan losses
("PLL");
Classified and Non-Performing Assets
On January 1, 2022, the Company adopted ASU
2016-13, Financial Instruments - Credit Losses (Topic
326) - Measurement of Credit Losses on Financial Instruments,
which replaced the incurred loss methodology for determining our
ACL with an expected loss methodology that is referred to as the
CECL. The measurement of expected credit losses under the CECL
methodology applies to financial assets subject to credit losses
and measured at amortized cost, and certain off-balance sheet
credit exposures. This includes, but is not limited to, loans,
leases, held-to-maturity securities, loan commitments, and
financial guarantees. In addition, ASU 2016-13 made changes to the
accounting for available-for-sale ("AFS") debt securities.
Credit-related impairments on AFS debt securities are now
recognized as an allowance for credit loss rather than a write-down
of the securities' amortized cost basis when management does not
intend to sell or believes that it is not likely that they will be
required to sell the securities prior to recovery of the securities
amortized cost basis. We adopted ASU 2016-13 using the modified
retrospective method. Results for reporting periods beginning after
January 1, 2022, are presented under ASU 2016-13 while prior period
amounts continue to be reported in accordance with previously
applicable GAAP. At adoption, the Company did not hold Held to
Maturity ("HTM") investment debt securities.
The impact at adoption was an increase to the
ACL of $2.5 million, the recording of a reserve for unfunded
commitments of $0.2 million, an increase in deferred taxes of
$0.7 million, and a decrease in retained earnings of
$2.0 million.
ACL balances increased to 1.26% of portfolio
loans at December 31, 2022 compared to an ALLL of 1.17% of
portfolio loans at December 31, 2021. At and for the twelve
months ended December 31, 2022, the Company's ACL increased
$4.5 million or 24.3% to $22.9 million from $18.4 million at
December 31, 2021. The Company recorded a $0.9 million and
$2.4 million PCL for the three months and year ended
December 31, 2022 compared to no PLL and $0.6 million PLL for
the three months and year ended December 31, 2021. There were
$0.5 million in net charge-offs during the year ended
December 31, 2022 compared to $1.6 million in net charge-offs
for the year ended December 31, 2021.
Management believes that the allowance is
adequate at December 31, 2022.
Classified assets increased $0.9 million from
$5.2 million at December 31, 2021 to $6.1 million at
December 31, 2022. Management considers classified assets to
be an important measure of asset quality. The Company's risk rating
process for classified loans is an important input into the
Company's ACL qualitative framework. Management remains committed
to expeditiously resolving non-performing or substandard credits
that are not likely to become performing or passing credits in a
reasonable timeframe.
During 2021, classified assets decreased
$17.1 million. Asset quality improved with the resolution of
$16.9 million in non-accrual and impaired loans through loan
sales and negotiated payoffs as well as the resolution of
$3.1 million in OREO. The Company's sale of impaired loans
decreased the specific reserve, improved asset quality, and
improved several ALLL qualitative factors.
The ratio of non-accrual loans and OREO to total
gross portfolio loans and OREO decreased 14 basis points from
0.48% at December 31, 2021 to 0.34%
at December 31, 2022. The ratio of non-accrual loans,
OREO and TDRs to total assets decreased eight basis
points from 0.35% at December 31, 2021 to 0.27%
at December 31, 2022.
Non-accrual loans decreased $1.5 million from
$7.6 million at December 31, 2021 to $6.1 million at
December 31, 2022. There were no OREO balances at
December 31, 2022 and December 31, 2021.
________________________
1 The Company implemented the CECL accounting
standard effective January 1, 2022. The Company used an incurred
loss methodology for all periods compared before March 31,
2022.
About The Community Financial
Corporation - Headquartered in Waldorf, MD, The Community
Financial Corporation is the bank holding company for Community
Bank of the Chesapeake, a full-service commercial bank with assets
of approximately $2.4 billion. Through its branch offices and
commercial lending centers, Community Bank of the Chesapeake offers
a broad range of financial products and services to individuals and
businesses. The Company’s branches are located at its main office
in Waldorf, Maryland, and branch offices in Bryans Road, Dunkirk,
Leonardtown, La Plata, Charlotte Hall, Prince Frederick, Lusby and
California, Maryland; and Fredericksburg - Downtown and
Fredericksburg - Harrison Crossing, Virginia. More information
about Community Bank of the Chesapeake can be found at
www.cbtc.com.
Use of non-GAAP Financial
Measures - Statements included in this press release
include non-GAAP financial measures and should be read along with
the accompanying tables, which provide a reconciliation of non-GAAP
financial measures to GAAP financial measures. The Company’s
management uses these non-GAAP financial measures, and believes
that non-GAAP financial measures provide additional useful
information that allows readers to evaluate the ongoing performance
of the Company. Non-GAAP financial measures should not be
considered as an alternative to any measure of performance or
financial condition as promulgated under GAAP, and investors should
consider the Company’s performance and financial condition as
reported under GAAP and all other relevant information when
assessing the performance or financial condition of the Company.
Non-GAAP financial measures have limitations as analytical tools,
and investors should not consider them in isolation or as a
substitute for analysis of the results or financial condition as
reported under GAAP.
Forward-looking Statements -
Certain statements contained in this news release may not be based
on historical facts and are “forward-looking statements” within the
meaning Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements can generally be identified by the fact
that they do not relate strictly to historical or current facts.
They often include words or phrases such as “is optimistic,”
“project,” “believe,” “expect,” “anticipate,” “estimate”, “assume”
and “intend” or future or conditional verbs such as “will,”
“would,” “should,” “could” or “may.” Statements in this release
that are not strictly historical are forward-looking and are based
upon current expectations that may differ materially from actual
results. These forward-looking statements include, without
limitation: (i) those relating to the Company’s and the Bank’s
future growth and management’s outlook or expectations for revenue,
assets, asset quality, profitability, business prospects, net
interest margin, non-interest revenue, allowance for loan losses,
the level of credit losses from lending, liquidity levels, capital
levels, or future financial or business performance strategies or
expectations; (ii) any statements of the plans, objectives, or
expected benefits associated with the proposed merger of the
Company with and into Shore Bancshares, Inc.; (iii) any statements
of the plans and objectives of management for future operations
products or services, including the expected benefits from, and/or
the execution of integration plans relating to any acquisition we
have undertaken or that we undertake in the future; (iv) plans and
cost savings regarding branch closings or consolidation; (v)
projections related to certain financial metrics, including with
respect to the quarterly expense run rate; (vi) expected benefits
of programs we introduce, including residential mortgage programs
and retail and commercial credit card programs; and (vii) any
statement of expectation or belief, and any assumptions underlying
the foregoing. These forward-looking statements express
management’s current expectations or forecasts of future events,
results and conditions, and by their nature are subject to and
involve risks and uncertainties that could cause actual results to
differ materially from those anticipated by the statements made
herein. Factors that might cause actual results to differ
materially from those made in such statements include, but are not
limited to: (i) risks, uncertainties and other factors relating to
the COVID-19 pandemic (including the length of time that the
pandemic continues; the ability of states and local governments to
successfully implement the lifting of restrictions on movement and
the potential imposition of further restrictions on movement and
travel in the future, the effect of the pandemic on the general
economy and on the businesses of our borrowers and their ability to
make payments on their obligations; (ii) the remedial actions and
stimulus measures adopted by federal, state and local governments,
and the inability of employees to work due to illness, quarantine,
or government mandates); (iii) the impacts related to or resulting
from Russia’s military action in Ukraine, including the broader
impacts to financial markets and the global macroeconomic and
geopolitical environments; (iv) assumptions that interest-earning
assets will reprice faster than interest-bearing liabilities and
the Bank’s ability to maintain its current favorable funding mix;
(v) our proposed merger with Shore Bancshares, Inc. may not close
when expected or at all because required regulatory or other
approvals are not received or other conditions to the closings are
not satisfied on a timely basis or at all, or are obtained subject
to conditions that are not anticipated; (vi) the synergies and
other expected financial benefits from any acquisition that we have
undertaken or may undertake in the future (including our proposed
merger with Shore Bancshares, Inc.) may or may not be realized
within the expected time frames or at all; (vii) the impact of our
adoption of the CECL standard; (viii) limitations on our ability to
declare and pay dividends or engage in share repurchases; (ix)
changes in the Company's or the Bank's strategy, costs or
difficulties related to integration matters might be greater than
expected; (x) availability of and costs associated with obtaining
adequate and timely sources of liquidity; (xi) the ability to
maintain credit quality; (xii) general economic trends and
conditions, including inflation and its impacts; (xiii) changes in
interest rates; (xiv) loss of deposits and loan demand to other
financial institutions; (xv) substantial changes in financial
markets; (xvi) changes in real estate value and the real estate
market; (xvii) regulatory changes; (xviii) the impact of government
shutdowns or sequestration; (xix) the possibility of unforeseen
events affecting the industry generally; (xx) the uncertainties
associated with newly developed or acquired operations; (xxi) the
outcome of pending or threatened litigation, including litigation
pertaining to the proposed merger with Shore Bancshares, Inc., or
of matters before regulatory agencies, whether currently existing
or commencing in the future; (xxii) market disruptions and other
effects of terrorist activities; and (xxiii) the matters described
in “Item 1A Risk Factors” in the Company’s Annual Report on Form
10-K for the Year Ended December 31, 2021, and in its other
Reports filed with the Securities and Exchange Commission (the
“SEC”). The Company’s forward-looking statements may also be
subject to other risks and uncertainties, including those that it
may discuss elsewhere in this news release or in its filings with
the SEC, accessible on the SEC’s Web site at www.sec.gov. The Company
undertakes no obligation to update these forward-looking statements
to reflect events or circumstances after the date hereof or to
reflect the occurrence of unforeseen events, except as required
under the rules and regulations of the SEC.
Data is unaudited as of December 31, 2022.
This selected information should be read in conjunction with the
financial statements and notes included in the Company's Annual
Report on Form 10-K for the year ended December 31, 2021.
CONTACTS:
James M. Burke, Chief Executive Officer
Todd L. Capitani, Chief Financial Officer
888.745.2265
SUPPLEMENTAL QUARTERLY FINANCIAL DATA
(UNAUDITED)
CONDENSED CONSOLIDATED INCOME STATEMENT
(dollars in thousands, except per share amounts)
|
|
Three Months Ended |
|
December 31,
2022 |
|
September 30,
2022 |
|
June 30,
2022 |
|
March 31,
2022 |
|
December 31,
2021 |
Interest and Dividend Income |
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
21,621 |
|
|
$ |
18,735 |
|
|
$ |
16,772 |
|
|
$ |
15,610 |
|
|
$ |
16,222 |
|
Interest and dividends on securities |
|
|
3,445 |
|
|
|
2,454 |
|
|
|
1,924 |
|
|
|
1,666 |
|
|
|
1,531 |
|
Interest on deposits with banks |
|
|
186 |
|
|
|
156 |
|
|
|
78 |
|
|
|
60 |
|
|
|
25 |
|
Total Interest and
Dividend Income |
|
|
25,252 |
|
|
|
21,345 |
|
|
|
18,774 |
|
|
|
17,336 |
|
|
|
17,778 |
|
Interest
Expense |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
4,029 |
|
|
|
1,850 |
|
|
|
819 |
|
|
|
513 |
|
|
|
565 |
|
Long-term debt |
|
|
434 |
|
|
|
386 |
|
|
|
371 |
|
|
|
354 |
|
|
|
332 |
|
Total Interest
Expense |
|
|
4,821 |
|
|
|
2,288 |
|
|
|
1,206 |
|
|
|
867 |
|
|
|
897 |
|
Net Interest Income
(NII) |
|
|
20,431 |
|
|
|
19,057 |
|
|
|
17,568 |
|
|
|
16,469 |
|
|
|
16,881 |
|
Provision for credit losses |
|
|
868 |
|
|
|
694 |
|
|
|
425 |
|
|
|
450 |
|
|
|
— |
|
Provision (recovery) for unfunded commitments |
|
|
145 |
|
|
|
6 |
|
|
|
26 |
|
|
|
(31 |
) |
|
|
— |
|
NII After Provision
For Credit Losses |
|
|
19,418 |
|
|
|
18,357 |
|
|
|
17,117 |
|
|
|
16,050 |
|
|
|
16,881 |
|
Noninterest
Income |
|
|
|
|
|
|
|
|
|
|
Loan appraisal, credit, and miscellaneous charges |
|
|
137 |
|
|
|
65 |
|
|
|
44 |
|
|
|
176 |
|
|
|
257 |
|
Net gain on sale of assets |
|
|
695 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Unrealized gains (losses) on equity securities |
|
|
9 |
|
|
|
(187 |
) |
|
|
(155 |
) |
|
|
(222 |
) |
|
|
(45 |
) |
Loss on premises and equipment held for sale |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5 |
) |
Income from bank owned life insurance |
|
|
219 |
|
|
|
220 |
|
|
|
217 |
|
|
|
214 |
|
|
|
219 |
|
Service charges |
|
|
1,215 |
|
|
|
1,130 |
|
|
|
1,108 |
|
|
|
926 |
|
|
|
1,235 |
|
Referral fee income |
|
|
14 |
|
|
|
— |
|
|
|
— |
|
|
|
361 |
|
|
|
574 |
|
Net gains (losses) on sale of loans originated for sale |
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
(4 |
) |
|
|
55 |
|
Loss on sale of loans |
|
|
— |
|
|
|
— |
|
|
|
209 |
|
|
|
— |
|
|
|
— |
|
Total Noninterest
Income |
|
|
2,289 |
|
|
|
1,229 |
|
|
|
1,424 |
|
|
|
1,451 |
|
|
|
2,290 |
|
Noninterest
Expense |
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
5,584 |
|
|
|
5,116 |
|
|
|
5,051 |
|
|
|
5,055 |
|
|
|
5,265 |
|
OREO valuation allowance and expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
767 |
|
Merger and acquisition costs |
|
|
1,004 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Sub
Total |
|
|
6,588 |
|
|
|
5,116 |
|
|
|
5,051 |
|
|
|
5,061 |
|
|
|
6,032 |
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
Occupancy expense |
|
|
834 |
|
|
|
826 |
|
|
|
820 |
|
|
|
732 |
|
|
|
656 |
|
Advertising |
|
|
177 |
|
|
|
149 |
|
|
|
159 |
|
|
|
64 |
|
|
|
128 |
|
Data processing expense |
|
|
1,049 |
|
|
|
1,062 |
|
|
|
1,008 |
|
|
|
1,007 |
|
|
|
1,006 |
|
Professional fees |
|
|
991 |
|
|
|
923 |
|
|
|
845 |
|
|
|
731 |
|
|
|
937 |
|
Depreciation of premises and equipment |
|
|
181 |
|
|
|
177 |
|
|
|
150 |
|
|
|
149 |
|
|
|
139 |
|
FDIC Insurance |
|
|
185 |
|
|
|
160 |
|
|
|
177 |
|
|
|
179 |
|
|
|
90 |
|
Core deposit intangible amortization |
|
|
90 |
|
|
|
97 |
|
|
|
102 |
|
|
|
109 |
|
|
|
115 |
|
Fraud losses |
|
|
179 |
|
|
|
37 |
|
|
|
30 |
|
|
|
40 |
|
|
|
16 |
|
Other expenses |
|
|
1,116 |
|
|
|
1,079 |
|
|
|
996 |
|
|
|
1,008 |
|
|
|
1,060 |
|
Total Operating
Expenses |
|
|
4,802 |
|
|
|
4,510 |
|
|
|
4,287 |
|
|
|
4,019 |
|
|
|
4,147 |
|
Total Noninterest
Expense |
|
|
11,390 |
|
|
|
9,626 |
|
|
|
9,338 |
|
|
|
9,080 |
|
|
|
10,179 |
|
Income before income taxes |
|
|
10,317 |
|
|
|
9,960 |
|
|
|
9,203 |
|
|
|
8,421 |
|
|
|
8,992 |
|
Income tax expense |
|
|
2,702 |
|
|
|
2,380 |
|
|
|
2,369 |
|
|
|
2,133 |
|
|
|
2,241 |
|
Net
Income |
|
$ |
7,615 |
|
|
$ |
7,580 |
|
|
$ |
6,834 |
|
|
$ |
6,288 |
|
|
$ |
6,751 |
|
SUPPLEMENTAL QUARTERLY FINANCIAL DATA (UNAUDITED) -
Continued
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
(Audited) |
(dollars in thousands, except per share amounts) |
|
December 31,
2022 |
|
September 30,
2022 |
|
June 30,
2022 |
|
March 31,
2022 |
|
December 31,
2021 |
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
11,511 |
|
|
$ |
18,008 |
|
|
$ |
16,164 |
|
|
$ |
80,702 |
|
|
$ |
108,990 |
|
Federal funds sold |
|
|
2,140 |
|
|
|
20,325 |
|
|
|
37,320 |
|
|
|
— |
|
|
|
— |
|
Interest-bearing deposits with
banks |
|
|
11,822 |
|
|
|
14,970 |
|
|
|
34,659 |
|
|
|
32,460 |
|
|
|
30,664 |
|
Securities available for sale
("AFS"), at fair value |
|
|
462,746 |
|
|
|
464,502 |
|
|
|
485,456 |
|
|
|
507,527 |
|
|
|
497,839 |
|
Equity securities carried at
fair value through income |
|
|
4,286 |
|
|
|
4,254 |
|
|
|
4,423 |
|
|
|
4,562 |
|
|
|
4,772 |
|
Non-marketable equity
securities held in other financial institutions |
|
|
207 |
|
|
|
207 |
|
|
|
207 |
|
|
|
207 |
|
|
|
207 |
|
Federal Home Loan Bank
("FHLB") stock - at cost |
|
|
4,584 |
|
|
|
1,226 |
|
|
|
1,234 |
|
|
|
1,685 |
|
|
|
1,472 |
|
Loans held for sale |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
373 |
|
|
|
— |
|
Net U.S. Small Business
Administration ("SBA") Paycheck Protection ("PPP") Loans |
|
|
339 |
|
|
|
1,211 |
|
|
|
5,022 |
|
|
|
15,279 |
|
|
|
26,398 |
|
Portfolio Loans Receivable net
of allowance for credit losses of $22,890, $22,027, $21,404,
$21,382 and $18,417 |
|
|
1,798,178 |
|
|
|
1,721,250 |
|
|
|
1,631,055 |
|
|
|
1,608,156 |
|
|
|
1,560,393 |
|
Net Loans |
|
|
1,798,517 |
|
|
|
1,722,461 |
|
|
|
1,636,077 |
|
|
|
1,623,435 |
|
|
|
1,586,791 |
|
Goodwill |
|
|
10,835 |
|
|
|
10,835 |
|
|
|
10,835 |
|
|
|
10,835 |
|
|
|
10,835 |
|
Premises and equipment,
net |
|
|
21,308 |
|
|
|
21,626 |
|
|
|
21,802 |
|
|
|
21,304 |
|
|
|
21,427 |
|
Accrued interest
receivable |
|
|
8,335 |
|
|
|
6,791 |
|
|
|
6,099 |
|
|
|
5,389 |
|
|
|
5,588 |
|
Investment in bank owned life
insurance |
|
|
39,802 |
|
|
|
39,583 |
|
|
|
39,363 |
|
|
|
39,145 |
|
|
|
38,932 |
|
Core deposit intangible |
|
|
634 |
|
|
|
725 |
|
|
|
821 |
|
|
|
924 |
|
|
|
1,032 |
|
Net deferred tax assets |
|
|
24,657 |
|
|
|
24,755 |
|
|
|
20,223 |
|
|
|
15,523 |
|
|
|
9,033 |
|
Right of use assets -
operating leases |
|
|
5,920 |
|
|
|
6,022 |
|
|
|
6,123 |
|
|
|
6,033 |
|
|
|
6,124 |
|
Other assets |
|
|
2,713 |
|
|
|
3,331 |
|
|
|
2,708 |
|
|
|
1,819 |
|
|
|
3,600 |
|
Total
Assets |
|
$ |
2,410,017 |
|
|
$ |
2,359,621 |
|
|
$ |
2,323,514 |
|
|
$ |
2,351,923 |
|
|
$ |
2,327,306 |
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
$ |
630,120 |
|
|
$ |
647,432 |
|
|
$ |
635,649 |
|
|
$ |
644,385 |
|
|
$ |
445,778 |
|
Interest-bearing deposits |
|
|
1,458,343 |
|
|
|
1,479,125 |
|
|
|
1,449,727 |
|
|
|
1,450,698 |
|
|
|
1,610,386 |
|
Total deposits |
|
|
2,088,463 |
|
|
|
2,126,557 |
|
|
|
2,085,376 |
|
|
|
2,095,083 |
|
|
|
2,056,164 |
|
Long-term debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,213 |
|
|
|
12,231 |
|
Guaranteed preferred
beneficial interest in junior subordinated debentures
("TRUPs") |
|
|
12,000 |
|
|
|
12,000 |
|
|
|
12,000 |
|
|
|
12,000 |
|
|
|
12,000 |
|
Subordinated notes -
4.75% |
|
|
19,566 |
|
|
|
19,552 |
|
|
|
19,538 |
|
|
|
19,524 |
|
|
|
19,510 |
|
Lease liabilities - operating
leases |
|
|
6,202 |
|
|
|
6,288 |
|
|
|
6,372 |
|
|
|
6,266 |
|
|
|
6,343 |
|
Accrued expenses and other
liabilities |
|
|
17,775 |
|
|
|
16,070 |
|
|
|
15,357 |
|
|
|
13,697 |
|
|
|
12,925 |
|
Total
Liabilities |
|
|
2,223,006 |
|
|
|
2,180,467 |
|
|
|
2,138,643 |
|
|
|
2,158,783 |
|
|
|
2,119,173 |
|
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
56 |
|
|
|
56 |
|
|
|
56 |
|
|
|
57 |
|
|
|
57 |
|
Additional paid in
capital |
|
|
97,986 |
|
|
|
97,712 |
|
|
|
97,455 |
|
|
|
97,189 |
|
|
|
96,896 |
|
Retained earnings |
|
|
132,235 |
|
|
|
125,608 |
|
|
|
119,523 |
|
|
|
115,179 |
|
|
|
113,448 |
|
Accumulated other
comprehensive losses |
|
|
(43,092 |
) |
|
|
(43,906 |
) |
|
|
(31,847 |
) |
|
|
(18,969 |
) |
|
|
(1,952 |
) |
Unearned ESOP shares |
|
|
(174 |
) |
|
|
(316 |
) |
|
|
(316 |
) |
|
|
(316 |
) |
|
|
(316 |
) |
Total Stockholders'
Equity |
|
|
187,011 |
|
|
|
179,154 |
|
|
|
184,871 |
|
|
|
193,140 |
|
|
|
208,133 |
|
Total Liabilities and
Stockholders' Equity |
|
$ |
2,410,017 |
|
|
$ |
2,359,621 |
|
|
$ |
2,323,514 |
|
|
$ |
2,351,923 |
|
|
$ |
2,327,306 |
|
|
|
|
|
|
|
|
|
|
|
|
Common shares issued and
outstanding |
|
|
5,648,435 |
|
|
|
5,644,186 |
|
|
|
5,649,729 |
|
|
|
5,686,799 |
|
|
|
5,718,528 |
|
SUPPLEMENTAL QUARTERLY FINANCIAL DATA (UNAUDITED) -
Continued
SELECTED FINANCIAL INFORMATION AND RATIOS
|
|
Three Months Ended |
(dollars in thousands, except per share amounts) |
|
December 31,
2022 |
|
September 30,
2022 |
|
June 30,
2022 |
|
March 31,
2022 |
|
December 31,
2021 |
KEY OPERATING RATIOS |
|
|
|
|
|
|
|
|
|
|
Return on average assets ("ROAA") |
|
|
1.28 |
% |
|
|
1.31 |
% |
|
|
1.19 |
% |
|
|
1.08 |
% |
|
|
1.18 |
% |
Pre-tax Pre-Provision
ROAA** |
|
|
1.97 |
|
|
|
1.85 |
|
|
|
1.70 |
|
|
|
1.54 |
|
|
|
1.59 |
|
Return on average common
equity ("ROACE") |
|
|
16.61 |
|
|
|
15.97 |
|
|
|
14.39 |
|
|
|
12.30 |
|
|
|
13.00 |
|
Pre-tax Pre-Provision
ROACE** |
|
|
25.53 |
|
|
|
22.67 |
|
|
|
20.54 |
|
|
|
17.50 |
|
|
|
17.53 |
|
Return on Average Tangible
Common Equity ("ROATCE")** |
|
|
17.88 |
|
|
|
17.18 |
|
|
|
15.50 |
|
|
|
13.22 |
|
|
|
13.97 |
|
Pre-tax Pre-Provision
ROATCE** |
|
|
27.24 |
|
|
|
24.14 |
|
|
|
21.89 |
|
|
|
18.57 |
|
|
|
18.60 |
|
Average total equity to
average total assets |
|
|
7.73 |
|
|
|
8.17 |
|
|
|
8.28 |
|
|
|
8.79 |
|
|
|
9.06 |
|
Interest rate spread |
|
|
3.24 |
|
|
|
3.26 |
|
|
|
3.14 |
|
|
|
3.05 |
|
|
|
3.17 |
|
Net interest margin |
|
|
3.64 |
|
|
|
3.47 |
|
|
|
3.25 |
|
|
|
3.12 |
|
|
|
3.22 |
|
Yield on loans portfolio |
|
|
4.92 |
|
|
|
4.46 |
|
|
|
4.13 |
|
|
|
3.99 |
|
|
|
4.13 |
|
Cost of funds |
|
|
0.89 |
|
|
|
0.43 |
|
|
|
0.23 |
|
|
|
0.17 |
|
|
|
0.17 |
|
Cost of deposits |
|
|
0.77 |
|
|
|
0.36 |
|
|
|
0.16 |
|
|
|
0.10 |
|
|
|
0.11 |
|
Cost of debt |
|
|
4.67 |
|
|
|
4.40 |
|
|
|
3.81 |
|
|
|
3.24 |
|
|
|
3.04 |
|
Efficiency ratio |
|
|
50.13 |
|
|
|
47.45 |
|
|
|
49.17 |
|
|
|
50.67 |
|
|
|
53.10 |
|
Efficiency ratio -
Non-GAAP** |
|
|
46.80 |
|
|
|
46.97 |
|
|
|
48.63 |
|
|
|
50.06 |
|
|
|
52.50 |
|
Non-interest income to average
assets |
|
|
0.39 |
|
|
|
0.21 |
|
|
|
0.25 |
|
|
|
0.25 |
|
|
|
0.40 |
|
Noninterest expense to average
assets |
|
|
1.92 |
|
|
|
1.66 |
|
|
|
1.63 |
|
|
|
1.56 |
|
|
|
1.78 |
|
Net operating expense to
average assets |
|
|
1.53 |
|
|
|
1.45 |
|
|
|
1.38 |
|
|
|
1.31 |
|
|
|
1.38 |
|
Net operating expense to
average assets - Non-GAAP** |
|
|
1.35 |
|
|
|
1.43 |
|
|
|
1.36 |
|
|
|
1.29 |
|
|
|
1.36 |
|
Average interest-earning
assets to average interest-bearing liabilities |
|
|
146.44 |
|
|
|
149.96 |
|
|
|
150.34 |
|
|
|
141.56 |
|
|
|
129.68 |
|
Net charge-offs to average
portfolio loans |
|
|
— |
|
|
|
0.02 |
|
|
|
0.10 |
|
|
|
— |
|
|
|
0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
COMMON SHARE
DATA |
|
|
|
|
|
|
|
|
|
|
Basic net income per common
share |
|
$ |
1.35 |
|
|
$ |
1.34 |
|
|
$ |
1.21 |
|
|
$ |
1.11 |
|
|
$ |
1.18 |
|
Diluted net income per common
share |
|
|
1.35 |
|
|
|
1.34 |
|
|
|
1.21 |
|
|
|
1.10 |
|
|
|
1.18 |
|
Cash dividends paid per common
share |
|
|
0.175 |
|
|
|
0.175 |
|
|
|
0.175 |
|
|
|
0.175 |
|
|
|
0.150 |
|
Basic - weighted average
common shares outstanding |
|
|
5,638,059 |
|
|
|
5,636,640 |
|
|
|
5,647,821 |
|
|
|
5,688,221 |
|
|
|
5,711,746 |
|
Diluted - weighted average
common shares outstanding |
|
|
5,645,703 |
|
|
|
5,644,822 |
|
|
|
5,657,733 |
|
|
|
5,699,038 |
|
|
|
5,723,011 |
|
SUPPLEMENTAL QUARTERLY FINANCIAL DATA (UNAUDITED) -
Continued
SELECTED FINANCIAL INFORMATION AND RATIOS
|
|
Three Months Ended |
(dollars in thousands, except per share amounts) |
|
December 31,
2022 |
|
September 30,
2022 |
|
June 30,
2022 |
|
March 31,
2022 |
|
December 31,
2021 |
ASSET QUALITY |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,410,017 |
|
|
$ |
2,359,621 |
|
|
$ |
2,323,514 |
|
|
$ |
2,351,923 |
|
|
$ |
2,327,306 |
|
Total portfolio loans
(1) |
|
|
1,821,068 |
|
|
|
1,743,277 |
|
|
|
1,652,459 |
|
|
|
1,629,538 |
|
|
|
1,578,810 |
|
Classified assets |
|
|
6,115 |
|
|
|
5,967 |
|
|
|
6,062 |
|
|
|
4,745 |
|
|
|
5,211 |
|
Allowance for credit
losses |
|
|
22,890 |
|
|
|
22,027 |
|
|
|
21,404 |
|
|
|
21,382 |
|
|
|
18,417 |
|
|
|
|
|
|
|
|
|
|
|
|
Past due loans - 31 to 89
days |
|
|
604 |
|
|
|
713 |
|
|
|
900 |
|
|
|
386 |
|
|
|
568 |
|
Past due loans >=90
days |
|
|
438 |
|
|
|
428 |
|
|
|
147 |
|
|
|
1,233 |
|
|
|
961 |
|
Total past due loans
(2) |
|
|
1,042 |
|
|
|
1,141 |
|
|
|
1,047 |
|
|
|
1,619 |
|
|
|
1,529 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans
(3) |
|
|
6,115 |
|
|
|
6,290 |
|
|
|
6,235 |
|
|
|
7,465 |
|
|
|
7,631 |
|
Accruing troubled debt
restructures ("TDRs") |
|
|
429 |
|
|
|
433 |
|
|
|
439 |
|
|
|
442 |
|
|
|
447 |
|
Non-accrual loans, OREO and TDRs |
|
$ |
6,544 |
|
|
$ |
6,723 |
|
|
$ |
6,674 |
|
|
$ |
7,907 |
|
|
$ |
8,078 |
|
** Non-GAAP financial measure. See
reconciliation of GAAP and NON-GAAP measures.
____________________________________
(1) Portfolio loans include all loan portfolios
except the U.S. SBA PPP loan portfolio. Asset quality ratios for
loans exclude U.S. SBA PPP loans. December 31, 2021 reported
balance are shown net of deferred costs and fees to conform with
the current period's presentation.
(2) Delinquency excludes Purchase Credit Impaired
("PCI") loans for December 31, 2021.
(3) Non-accrual loans include all loans that are
90 days or more delinquent and loans that are non-accrual due to
the operating results or cash flows of a customer. Non-accrual
loans can include loans that are current with all loan payments. At
December 31, 2022 and December 31, 2021, the Company had
current non-accrual loans of $5.6 million and $6.7 million,
respectively.
SUPPLEMENTAL QUARTERLY FINANCIAL DATA (UNAUDITED) -
Continued
SELECTED FINANCIAL INFORMATION AND RATIOS
|
|
Three Months Ended |
(dollars in thousands, except per share amounts) |
|
December 31,
2022 |
|
September 30,
2022 |
|
June 30,
2022 |
|
March 31,
2022 |
|
December 31,
2021 |
ASSET QUALITY RATIOS
(1) |
|
|
|
|
|
|
|
|
|
|
Classified assets to total assets |
|
|
0.25 |
% |
|
|
0.25 |
% |
|
|
0.26 |
% |
|
|
0.20 |
% |
|
|
0.22 |
% |
Classified assets to
risk-based capital |
|
|
2.23 |
|
|
|
2.25 |
|
|
|
2.35 |
|
|
|
1.87 |
|
|
|
2.10 |
|
Allowance for credit losses to
portfolio loans |
|
|
1.26 |
|
|
|
1.26 |
|
|
|
1.30 |
|
|
|
1.31 |
|
|
|
1.17 |
|
Allowance for credit losses to
non-accrual loans |
|
|
374.33 |
|
|
|
350.19 |
|
|
|
343.29 |
|
|
|
286.43 |
|
|
|
241.34 |
|
Allowance for credit losses to
nonperforming loans |
|
|
349.79 |
|
|
|
327.64 |
|
|
|
320.71 |
|
|
|
270.42 |
|
|
|
227.99 |
|
Past due loans - 31 to 89 days
to portfolio loans |
|
|
0.03 |
|
|
|
0.04 |
|
|
|
0.05 |
|
|
|
0.02 |
|
|
|
0.04 |
|
Past due loans >=90 days to
portfolio loans |
|
|
0.02 |
|
|
|
0.02 |
|
|
|
0.01 |
|
|
|
0.08 |
|
|
|
0.06 |
|
Total past due (delinquency)
to portfolio loans |
|
|
0.06 |
|
|
|
0.07 |
|
|
|
0.06 |
|
|
|
0.10 |
|
|
|
0.10 |
|
Non-accrual loans to portfolio
loans |
|
|
0.34 |
|
|
|
0.36 |
|
|
|
0.38 |
|
|
|
0.46 |
|
|
|
0.48 |
|
Non-accrual loans and TDRs to
portfolio loans |
|
|
0.36 |
|
|
|
0.39 |
|
|
|
0.40 |
|
|
|
0.49 |
|
|
|
0.51 |
|
Non-accrual loans and OREO to
total assets |
|
|
0.25 |
|
|
|
0.27 |
|
|
|
0.27 |
|
|
|
0.32 |
|
|
|
0.33 |
|
Non-accrual loans and OREO to
portfolio loans and OREO |
|
|
0.34 |
|
|
|
0.36 |
|
|
|
0.38 |
|
|
|
0.46 |
|
|
|
0.48 |
|
Non-accrual loans, OREO and
TDRs to total assets |
|
|
0.27 |
|
|
|
0.28 |
|
|
|
0.29 |
|
|
|
0.34 |
|
|
|
0.35 |
|
|
|
|
|
|
|
|
|
|
|
|
COMMON SHARE
DATA |
|
|
|
|
|
|
|
|
|
|
Book value per common
share |
|
$ |
33.11 |
|
|
$ |
31.74 |
|
|
$ |
32.72 |
|
|
$ |
33.96 |
|
|
$ |
36.40 |
|
Tangible book value per common
share** |
|
|
31.08 |
|
|
|
29.69 |
|
|
|
30.66 |
|
|
|
31.90 |
|
|
|
34.32 |
|
Common shares outstanding at
end of period |
|
|
5,648,435 |
|
|
|
5,644,186 |
|
|
|
5,649,729 |
|
|
|
5,686,799 |
|
|
|
5,718,528 |
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
DATA |
|
|
|
|
|
|
|
|
|
|
Full-time equivalent
employees |
|
|
196 |
|
|
|
199 |
|
|
|
190 |
|
|
|
191 |
|
|
|
186 |
|
Branches |
|
|
12 |
|
|
|
12 |
|
|
|
12 |
|
|
|
11 |
|
|
|
11 |
|
Loan Production Offices |
|
|
4 |
|
|
|
4 |
|
|
|
4 |
|
|
|
4 |
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
RATIOS |
|
|
|
|
|
|
|
|
|
|
Tier 1 capital to average
assets |
|
|
9.60 |
% |
|
|
9.56 |
% |
|
|
9.42 |
% |
|
|
9.17 |
% |
|
|
9.23 |
% |
Tier 1 common capital to
risk-weighted assets |
|
|
11.26 |
|
|
|
11.40 |
|
|
|
11.66 |
|
|
|
11.58 |
|
|
|
11.92 |
|
Tier 1 capital to
risk-weighted assets |
|
|
11.87 |
|
|
|
12.05 |
|
|
|
12.34 |
|
|
|
12.28 |
|
|
|
12.64 |
|
Total risk-based capital to
risk-weighted assets |
|
|
14.08 |
|
|
|
14.30 |
|
|
|
14.68 |
|
|
|
14.65 |
|
|
|
14.92 |
|
Common equity to assets |
|
|
7.76 |
|
|
|
7.59 |
|
|
|
7.96 |
|
|
|
8.21 |
|
|
|
8.94 |
|
Tangible common equity to
tangible assets ** |
|
|
7.32 |
|
|
|
7.14 |
|
|
|
7.49 |
|
|
|
7.75 |
|
|
|
8.48 |
|
** Non-GAAP financial measure. See
reconciliation of GAAP and Non-GAAP measures.
____________________________________
(1) Asset quality ratios are calculated using
total portfolio loans. Portfolio loans include all loan portfolios
except the U.S. SBA PPP loan portfolio.
SUPPLEMENTAL YEAR TO DATE FINANCIAL DATA (UNAUDITED)
CONDENSED CONSOLIDATED INCOME STATEMENT
|
|
|
|
|
|
|
|
(Audited) |
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
(dollars in thousands, except per share amounts) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Interest and Dividend Income |
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
21,621 |
|
|
$ |
16,222 |
|
|
$ |
72,738 |
|
|
$ |
65,476 |
|
Interest and dividends on securities |
|
|
3,445 |
|
|
|
1,531 |
|
|
|
9,489 |
|
|
|
4,992 |
|
Interest on deposits with banks |
|
|
186 |
|
|
|
25 |
|
|
|
480 |
|
|
|
91 |
|
Total Interest and
Dividend Income |
|
|
25,252 |
|
|
|
17,778 |
|
|
|
82,707 |
|
|
|
70,559 |
|
Interest
Expense |
|
|
|
|
|
|
|
|
Deposits |
|
|
4,029 |
|
|
|
565 |
|
|
|
7,211 |
|
|
|
2,601 |
|
Short-term borrowings |
|
|
358 |
|
|
|
— |
|
|
|
426 |
|
|
|
— |
|
Long-term debt |
|
|
434 |
|
|
|
332 |
|
|
|
1,545 |
|
|
|
1,524 |
|
Total Interest
Expense |
|
|
4,821 |
|
|
|
897 |
|
|
|
9,182 |
|
|
|
4,125 |
|
Net Interest Income
("NII") |
|
|
20,431 |
|
|
|
16,881 |
|
|
|
73,525 |
|
|
|
66,434 |
|
Provision for credit losses |
|
|
868 |
|
|
|
— |
|
|
|
2,437 |
|
|
|
586 |
|
Provision for unfunded commitments |
|
|
145 |
|
|
|
— |
|
|
|
146 |
|
|
|
— |
|
NII After Provision
For Credit Losses |
|
|
19,418 |
|
|
|
16,881 |
|
|
|
70,942 |
|
|
|
65,848 |
|
Noninterest Income |
|
|
|
|
|
|
|
|
Loan appraisal, credit, and misc. charges |
|
|
137 |
|
|
|
257 |
|
|
|
422 |
|
|
|
528 |
|
Gain on sale of assets |
|
|
695 |
|
|
|
— |
|
|
|
695 |
|
|
|
68 |
|
Net gains on sale of investment securities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
586 |
|
Unrealized gains (losses) on equity securities |
|
|
9 |
|
|
|
(45 |
) |
|
|
(555 |
) |
|
|
(139 |
) |
Loss on premises and equipment held for sale |
|
|
— |
|
|
|
(5 |
) |
|
|
— |
|
|
|
(25 |
) |
Income from bank owned life insurance |
|
|
219 |
|
|
|
219 |
|
|
|
870 |
|
|
|
871 |
|
Service charges |
|
|
1,215 |
|
|
|
1,235 |
|
|
|
4,379 |
|
|
|
4,301 |
|
Referral fee income |
|
|
14 |
|
|
|
574 |
|
|
|
375 |
|
|
|
1,822 |
|
Net gains (losses) on sale of loans originated for sale |
|
|
— |
|
|
|
55 |
|
|
|
(2 |
) |
|
|
85 |
|
Gains (losses) on sale of loans |
|
|
— |
|
|
|
— |
|
|
|
209 |
|
|
|
(191 |
) |
Total Noninterest
Income |
|
|
2,289 |
|
|
|
2,290 |
|
|
|
6,393 |
|
|
|
7,906 |
|
Noninterest
Expense |
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
5,584 |
|
|
|
5,265 |
|
|
|
20,806 |
|
|
|
21,035 |
|
OREO valuation allowance and expenses |
|
|
— |
|
|
|
767 |
|
|
|
6 |
|
|
|
1,456 |
|
Merger and acquisition costs |
|
|
1,004 |
|
|
|
— |
|
|
|
1,004 |
|
|
|
— |
|
Sub-total |
|
|
6,588 |
|
|
|
6,032 |
|
|
|
21,816 |
|
|
|
22,491 |
|
Operating
Expense |
|
|
|
|
|
|
|
|
Occupancy expense |
|
|
834 |
|
|
|
656 |
|
|
|
3,212 |
|
|
|
2,836 |
|
Advertising |
|
|
177 |
|
|
|
128 |
|
|
|
549 |
|
|
|
500 |
|
Data processing expense |
|
|
1,049 |
|
|
|
1,006 |
|
|
|
4,126 |
|
|
|
3,772 |
|
Professional fees |
|
|
991 |
|
|
|
937 |
|
|
|
3,490 |
|
|
|
2,857 |
|
Depreciation of premises and equipment |
|
|
181 |
|
|
|
139 |
|
|
|
657 |
|
|
|
558 |
|
FDIC Insurance |
|
|
185 |
|
|
|
90 |
|
|
|
701 |
|
|
|
602 |
|
Core deposit intangible amortization |
|
|
90 |
|
|
|
115 |
|
|
|
398 |
|
|
|
495 |
|
Fraud losses |
|
|
179 |
|
|
|
16 |
|
|
|
286 |
|
|
|
1,260 |
|
Other expenses |
|
|
1,116 |
|
|
|
1,060 |
|
|
|
4,199 |
|
|
|
3,781 |
|
Total Operating
Expense |
|
|
4,802 |
|
|
|
4,147 |
|
|
|
17,618 |
|
|
|
16,661 |
|
Total Noninterest
Expense |
|
|
11,390 |
|
|
|
10,179 |
|
|
|
39,434 |
|
|
|
39,152 |
|
Income before income taxes |
|
|
10,317 |
|
|
|
8,992 |
|
|
|
37,901 |
|
|
|
34,602 |
|
Income tax expense |
|
|
2,702 |
|
|
|
2,241 |
|
|
|
9,584 |
|
|
|
8,716 |
|
Net
Income |
|
$ |
7,615 |
|
|
$ |
6,751 |
|
|
$ |
28,317 |
|
|
$ |
25,886 |
|
SUPPLEMENTAL YEAR TO DATE FINANCIAL DATA (UNAUDITED)
|
|
Years Ended December 31, |
|
|
|
2022 |
|
|
|
2021 |
|
KEY OPERATING RATIOS |
|
|
|
|
Return on average assets
("ROAA") |
|
|
1.22 |
% |
|
|
1.19 |
% |
Pre-tax Pre-Provision
ROAA** |
|
|
1.77 |
|
|
|
1.65 |
|
Return on average common
equity ("ROACE") |
|
|
14.76 |
|
|
|
12.65 |
|
Pre-tax Pre-Provision
ROACE** |
|
|
21.45 |
|
|
|
17.44 |
|
Return on Average Tangible
Common Equity ("ROATCE")** |
|
|
15.88 |
|
|
|
13.64 |
|
Pre-tax Pre-Provision
ROATCE** |
|
|
22.84 |
|
|
|
18.53 |
|
Average total equity to
average total assets |
|
|
8.24 |
|
|
|
9.44 |
|
Interest rate spread |
|
|
3.18 |
|
|
|
3.28 |
|
Net interest margin |
|
|
3.38 |
|
|
|
3.34 |
|
Cost of funds |
|
|
0.43 |
|
|
|
0.21 |
|
Cost of deposits |
|
|
0.35 |
|
|
|
0.14 |
|
Cost of debt |
|
|
4.10 |
|
|
|
2.79 |
|
Efficiency ratio |
|
|
49.34 |
|
|
|
52.67 |
|
Efficiency ratio -
Non-GAAP** |
|
|
48.02 |
|
|
|
52.00 |
|
Non-interest income to average
assets |
|
|
0.10 |
|
|
|
0.11 |
|
Noninterest expense to average
assets |
|
|
1.69 |
|
|
|
1.81 |
|
Net operating expense to
average assets |
|
|
1.42 |
|
|
|
1.44 |
|
Net operating expenses to
average assets - Non-GAAP** |
|
|
1.36 |
|
|
|
1.42 |
|
Average interest-earning
assets to average interest-bearing liabilities |
|
|
147.05 |
|
|
|
130.61 |
|
Net charge-offs to average
portfolio loans |
|
|
0.03 |
|
|
|
0.11 |
|
|
|
|
|
|
COMMON SHARE
DATA |
|
|
|
|
Basic net income per common
share |
|
$ |
5.01 |
|
|
$ |
4.47 |
|
Diluted net income per common
share |
|
|
5.00 |
|
|
|
4.47 |
|
Cash dividends paid per common
share |
|
|
0.700 |
|
|
|
0.575 |
|
|
|
|
|
|
Weighted average
common shares outstanding: |
|
|
|
|
Basic |
|
|
5,652,189 |
|
|
|
5,788,003 |
|
Diluted |
|
|
5,659,629 |
|
|
|
5,797,525 |
|
____________________________________
** Non-GAAP financial measure. See reconciliation of GAAP and
NON-GAAP measures.
RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)
Reconciliation of US GAAP total assets,
common equity, common equity to assets and book value to Non-GAAP
tangible assets, tangible common equity, tangible common equity to
tangible assets and tangible book value.
This press release, including the accompanying
financial statement tables, contains financial information
determined by methods other than in accordance with generally
accepted accounting principles, or GAAP. This financial information
includes certain performance measures, which exclude intangible
assets. These non-GAAP measures are included because the Company
believes they may provide useful supplemental information for
evaluating the underlying performance trends of the Company.
(dollars in thousands, except per share amounts) |
|
December 31,
2022 |
|
September 30,
2022 |
|
June 30,
2022 |
|
March 31,
2022 |
|
December 31,
2021 |
Total assets |
|
$ |
2,410,017 |
|
|
$ |
2,359,621 |
|
|
$ |
2,323,514 |
|
|
$ |
2,351,923 |
|
|
$ |
2,327,306 |
|
Less: Intangible assets |
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
10,835 |
|
|
|
10,835 |
|
|
|
10,835 |
|
|
|
10,835 |
|
|
|
10,835 |
|
Core deposit intangible |
|
|
634 |
|
|
|
725 |
|
|
|
821 |
|
|
|
924 |
|
|
|
1,032 |
|
Total intangible assets |
|
|
11,469 |
|
|
|
11,560 |
|
|
|
11,656 |
|
|
|
11,759 |
|
|
|
11,867 |
|
Tangible assets |
|
$ |
2,398,548 |
|
|
$ |
2,348,061 |
|
|
$ |
2,311,858 |
|
|
$ |
2,340,164 |
|
|
$ |
2,315,439 |
|
|
|
|
|
|
|
|
|
|
|
|
Total common equity |
|
$ |
187,011 |
|
|
$ |
179,154 |
|
|
$ |
184,871 |
|
|
$ |
193,140 |
|
|
$ |
208,133 |
|
Less: Intangible assets |
|
|
11,469 |
|
|
|
11,560 |
|
|
|
11,656 |
|
|
|
11,759 |
|
|
|
11,867 |
|
Tangible common equity |
|
$ |
175,542 |
|
|
$ |
167,594 |
|
|
$ |
173,215 |
|
|
$ |
181,381 |
|
|
$ |
196,266 |
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding at
end of period |
|
|
5,648,435 |
|
|
|
5,644,186 |
|
|
|
5,649,729 |
|
|
|
5,686,799 |
|
|
|
5,718,528 |
|
|
|
|
|
|
|
|
|
|
|
|
Common equity to assets |
|
|
7.76 |
% |
|
|
7.59 |
% |
|
|
7.96 |
% |
|
|
8.21 |
% |
|
|
8.94 |
% |
Tangible common equity to
tangible assets |
|
|
7.32 |
% |
|
|
7.14 |
% |
|
|
7.49 |
% |
|
|
7.75 |
% |
|
|
8.48 |
% |
|
|
|
|
|
|
|
|
|
|
|
Common book value per
share |
|
$ |
33.11 |
|
|
$ |
31.74 |
|
|
$ |
32.72 |
|
|
$ |
33.96 |
|
|
$ |
36.40 |
|
Tangible common book value per
share |
|
$ |
31.08 |
|
|
$ |
29.69 |
|
|
$ |
30.66 |
|
|
$ |
31.90 |
|
|
$ |
34.32 |
|
RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)
This financial information includes certain
operating performance measures, which exclude merger and
acquisition costs, and core deposit intangibles, that are not
considered part of recurring operations. These non-GAAP measures
are included because the Company believes they may provide useful
supplemental information for evaluating the underlying performance
trends of the Company.
|
|
Three Months Ended |
|
Years Ended December 31 |
(dollars in thousands, except per share amounts) |
|
December 31,
2022 |
|
September 30,
2022 |
|
June 30,
2022 |
|
March 31,
2022 |
|
December 31,
2021 |
|
|
2022 |
|
|
|
2021 |
|
Efficiency ratio - GAAP basis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense |
|
$ |
11,390 |
|
|
$ |
9,626 |
|
|
$ |
9,338 |
|
|
$ |
9,080 |
|
|
$ |
10,179 |
|
|
$ |
39,434 |
|
|
$ |
39,152 |
|
Net interest income plus
noninterest income |
|
|
22,720 |
|
|
|
20,286 |
|
|
|
18,992 |
|
|
|
17,920 |
|
|
|
19,171 |
|
|
|
79,918 |
|
|
|
74,340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio - GAAP
basis |
|
|
50.13 |
% |
|
|
47.45 |
% |
|
|
49.17 |
% |
|
|
50.67 |
% |
|
|
53.10 |
% |
|
|
49.34 |
% |
|
|
52.67 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio -
Non-GAAP basis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Expense |
|
$ |
11,390 |
|
|
$ |
9,626 |
|
|
$ |
9,338 |
|
|
$ |
9,080 |
|
|
$ |
10,179 |
|
|
$ |
39,434 |
|
|
$ |
39,152 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger and acquisition costs |
|
|
(1,004 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,004 |
) |
|
|
— |
|
Core deposit intangible amortization |
|
|
(90 |
) |
|
|
(97 |
) |
|
|
(102 |
) |
|
|
(109 |
) |
|
|
(115 |
) |
|
|
(398 |
) |
|
|
(495 |
) |
Noninterest expense - as
adjusted |
|
$ |
10,296 |
|
|
$ |
9,529 |
|
|
$ |
9,236 |
|
|
$ |
8,971 |
|
|
$ |
10,064 |
|
|
$ |
38,032 |
|
|
$ |
38,657 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income plus
noninterest income |
|
$ |
22,720 |
|
|
$ |
20,286 |
|
|
$ |
18,992 |
|
|
$ |
17,920 |
|
|
$ |
19,171 |
|
|
$ |
79,918 |
|
|
$ |
74,340 |
|
Less: Gain on Infinex
sale |
|
|
(721 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(721 |
) |
|
|
— |
|
Net interest income plus
noninterest income - adjusted |
|
$ |
21,999 |
|
|
$ |
20,286 |
|
|
$ |
18,992 |
|
|
$ |
17,920 |
|
|
$ |
19,171 |
|
|
$ |
79,197 |
|
|
$ |
74,340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio Non-GAAP
basis |
|
|
46.80 |
% |
|
|
46.97 |
% |
|
|
48.63 |
% |
|
|
50.06 |
% |
|
|
52.50 |
% |
|
|
48.02 |
% |
|
|
52.00 |
% |
RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)
Reconciliation of US GAAP Net Income,
Earnings Per Share (EPS), Return on Average Assets (ROAA) and
Return on Average Common Equity (ROACE) to Non-GAAP Operating Net
Income, EPS, ROAA and ROACE
This financial information includes certain
operating performance measures, which exclude merger and
acquisition costs, and core deposit intangibles, that are not
considered part of recurring operations. These non-GAAP measures
are included because the Company believes they may provide useful
supplemental information for evaluating the underlying performance
trends of the Company.
|
|
Three Months Ended |
|
Years Ended December 31 |
(dollars in thousands, except per share amounts) |
|
December 31,
2022 |
|
September 30,
2022 |
|
June 30,
2022 |
|
March 31,
2022 |
|
December 31,
2021 |
|
|
2022 |
|
|
|
2021 |
|
Net income (loss) (as reported) |
|
$ |
7,615 |
|
|
$ |
7,580 |
|
|
$ |
6,834 |
|
|
$ |
6,288 |
|
|
$ |
6,751 |
|
|
$ |
28,317 |
|
|
$ |
25,886 |
|
Merger and acquisition costs
(net of tax) |
|
|
741 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
750 |
|
|
|
— |
|
Core deposit intangible
amortization (net of tax) |
|
|
66 |
|
|
|
74 |
|
|
|
76 |
|
|
|
81 |
|
|
|
86 |
|
|
|
297 |
|
|
|
370 |
|
Less: Gain on Infinex sale
(net of tax) |
|
|
(532 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(539 |
) |
|
|
— |
|
Non-GAAP operating net
income |
|
$ |
7,890 |
|
|
$ |
7,654 |
|
|
$ |
6,910 |
|
|
$ |
6,369 |
|
|
$ |
6,837 |
|
|
$ |
28,826 |
|
|
$ |
26,256 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted earnings per
share ("EPS") |
|
$ |
1.35 |
|
|
$ |
1.34 |
|
|
$ |
1.21 |
|
|
$ |
1.10 |
|
|
$ |
1.18 |
|
|
$ |
5.00 |
|
|
$ |
4.47 |
|
Non-GAAP operating diluted
EPS |
|
$ |
1.40 |
|
|
$ |
1.36 |
|
|
$ |
1.22 |
|
|
$ |
1.12 |
|
|
$ |
1.19 |
|
|
$ |
5.09 |
|
|
$ |
4.53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP return on average assets
("ROAA") |
|
|
1.28 |
% |
|
|
1.31 |
% |
|
|
1.19 |
% |
|
|
1.08 |
% |
|
|
1.18 |
% |
|
|
1.22 |
% |
|
|
1.19 |
% |
Non-GAAP operating ROAA |
|
|
1.33 |
% |
|
|
1.32 |
% |
|
|
1.21 |
% |
|
|
1.10 |
% |
|
|
1.19 |
% |
|
|
1.24 |
% |
|
|
1.21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP return on average common
equity ("ROACE") |
|
|
16.61 |
% |
|
|
15.97 |
% |
|
|
14.39 |
% |
|
|
12.30 |
% |
|
|
13.00 |
% |
|
|
14.76 |
% |
|
|
12.65 |
% |
Non-GAAP operating ROACE |
|
|
17.21 |
% |
|
|
16.13 |
% |
|
|
14.55 |
% |
|
|
12.46 |
% |
|
|
13.17 |
% |
|
|
15.02 |
% |
|
|
12.83 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding |
|
|
5,645,703 |
|
|
|
5,644,822 |
|
|
|
5,657,733 |
|
|
|
5,699,038 |
|
|
|
5,723,011 |
|
|
|
5,659,629 |
|
|
|
5,797,525 |
|
Average assets |
|
$ |
2,372,263 |
|
|
$ |
2,322,315 |
|
|
$ |
2,293,536 |
|
|
$ |
2,325,992 |
|
|
$ |
2,293,264 |
|
|
$ |
2,328,601 |
|
|
$ |
2,167,859 |
|
Average equity |
|
$ |
183,359 |
|
|
$ |
189,838 |
|
|
$ |
189,992 |
|
|
$ |
204,554 |
|
|
$ |
207,745 |
|
|
$ |
191,872 |
|
|
$ |
204,643 |
|
RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)
Pre-Tax Pre-Provision
("PTPP") Income, PTPP Return on
Average Assets ("ROAA"), PTPP
Return on Average Common Equity
("ROACE"), and Return on Average
Tangible Common Equity
("ROATCE")
Management believes that PTPP income, which
reflects the Company's profitability before income taxes and loan
loss provisions, and exclude merger and acquisition costs and he
Infinex equity settlement, allows investors to better assess the
Company's operating income and expenses in relation to the
Company's core operating revenue by removing the volatility that is
associated with credit provisions and different state income tax
rates for comparable institutions. ROATCE is computed by dividing
net earnings applicable to common shareholders by average tangible
common shareholders' equity, and exclude merger and acquisition
costs and the Infinex equity settlement. Management believes that
ROATCE is meaningful because it measures the performance of a
business consistently, whether acquired or internally developed.
ROATCE is a non-GAAP measure and may not be comparable to similar
non-GAAP measures used by other companies. Management also believes
that during a crisis such as the COVID-19 pandemic, this
information is useful as the impact of the pandemic on the loan
loss provisions of various institutions will likely vary based on
the geography of the communities served by a particular
institution.
|
|
Three Months Ended |
|
Years Ended December 31 |
(dollars in thousands) |
|
December 31,
2022 |
|
September 30,
2022 |
|
June 30,
2022 |
|
March 31,
2022 |
|
December 31,
2021 |
|
2022 |
|
2021 |
Net income (as reported) |
|
$ |
7,615 |
|
|
$ |
7,580 |
|
|
$ |
6,834 |
|
|
$ |
6,288 |
|
|
$ |
6,751 |
|
|
$ |
28,317 |
|
|
$ |
25,886 |
|
Provision for credit losses
& unfunded commitments |
|
|
1,013 |
|
|
|
700 |
|
|
|
451 |
|
|
|
419 |
|
|
|
— |
|
|
|
2,583 |
|
|
|
586 |
|
Income tax expenses |
|
|
2,702 |
|
|
|
2,380 |
|
|
|
2,369 |
|
|
|
2,133 |
|
|
|
2,241 |
|
|
|
9,584 |
|
|
|
8,716 |
|
Merger and acquisition
costs |
|
|
1,004 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,004 |
|
|
|
— |
|
Core deposit intangible
amortization |
|
|
90 |
|
|
|
97 |
|
|
|
102 |
|
|
|
109 |
|
|
|
115 |
|
|
|
398 |
|
|
|
495 |
|
Less: Gain on Infinex
sale |
|
|
(721 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(721 |
) |
|
|
— |
|
Pre-tax Pre-Provision
income |
|
$ |
11,703 |
|
|
$ |
10,757 |
|
|
$ |
9,756 |
|
|
$ |
8,949 |
|
|
$ |
9,107 |
|
|
$ |
41,165 |
|
|
$ |
35,683 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP ROAA |
|
|
1.28 |
% |
|
|
1.31 |
% |
|
|
1.19 |
% |
|
|
1.08 |
% |
|
|
1.18 |
% |
|
|
1.22 |
% |
|
|
1.19 |
% |
Pre-tax Pre-Provision
ROAA |
|
|
1.97 |
% |
|
|
1.85 |
% |
|
|
1.70 |
% |
|
|
1.54 |
% |
|
|
1.59 |
% |
|
|
1.77 |
% |
|
|
1.65 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP ROACE |
|
|
16.61 |
% |
|
|
15.97 |
% |
|
|
14.39 |
% |
|
|
12.30 |
% |
|
|
13.00 |
% |
|
|
14.76 |
% |
|
|
12.65 |
% |
Pre-tax Pre-Provision
ROACE |
|
|
25.53 |
% |
|
|
22.67 |
% |
|
|
20.54 |
% |
|
|
17.50 |
% |
|
|
17.53 |
% |
|
|
21.45 |
% |
|
|
17.44 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets |
|
$ |
2,372,263 |
|
|
$ |
2,322,315 |
|
|
$ |
2,293,536 |
|
|
$ |
2,325,992 |
|
|
$ |
2,293,264 |
|
|
$ |
2,328,601 |
|
|
$ |
2,167,859 |
|
Average equity |
|
$ |
183,359 |
|
|
$ |
189,838 |
|
|
$ |
189,992 |
|
|
$ |
204,554 |
|
|
$ |
207,745 |
|
|
$ |
191,872 |
|
|
$ |
204,643 |
|
Average tangible assets |
|
$ |
2,360,735 |
|
|
$ |
2,310,692 |
|
|
$ |
2,281,813 |
|
|
$ |
2,314,163 |
|
|
$ |
2,281,322 |
|
|
$ |
2,316,926 |
|
|
$ |
2,155,734 |
|
Average tangible common
equity |
|
$ |
171,831 |
|
|
$ |
178,215 |
|
|
$ |
178,269 |
|
|
$ |
192,725 |
|
|
$ |
195,803 |
|
|
$ |
180,197 |
|
|
$ |
192,518 |
|
|
|
Three Months Ended |
|
Years Ended December 31 |
(dollars in thousands) |
|
December 31,
2022 |
|
September 30,
2022 |
|
June 30,
2022 |
|
March 31,
2022 |
|
December 31,
2021 |
|
2022 |
|
2021 |
Net income (as reported) |
|
$ |
7,615 |
|
|
$ |
7,580 |
|
|
$ |
6,834 |
|
|
$ |
6,288 |
|
|
$ |
6,751 |
|
|
$ |
28,317 |
|
|
$ |
25,886 |
|
Core deposit intangible
amortization (net of tax) |
|
|
66 |
|
|
|
74 |
|
|
|
76 |
|
|
|
81 |
|
|
|
86 |
|
|
|
297 |
|
|
|
370 |
|
Net earnings applicable to
common shareholders |
|
$ |
7,681 |
|
|
$ |
7,654 |
|
|
$ |
6,910 |
|
|
$ |
6,369 |
|
|
$ |
6,837 |
|
|
$ |
28,614 |
|
|
$ |
26,256 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (as reported) |
|
$ |
7,615 |
|
|
$ |
7,580 |
|
|
$ |
6,834 |
|
|
$ |
6,288 |
|
|
$ |
6,751 |
|
|
$ |
28,317 |
|
|
$ |
25,886 |
|
Provision for credit losses
& unfunded commitments |
|
|
1,013 |
|
|
|
700 |
|
|
|
451 |
|
|
|
419 |
|
|
|
— |
|
|
|
2,583 |
|
|
|
586 |
|
Income tax expenses |
|
|
2,702 |
|
|
|
2,380 |
|
|
|
2,369 |
|
|
|
2,133 |
|
|
|
2,241 |
|
|
|
9,584 |
|
|
|
8,716 |
|
Merger and acquisition
costs |
|
|
1,004 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,004 |
|
|
|
— |
|
Core deposit intangible
amortization |
|
|
90 |
|
|
|
97 |
|
|
|
102 |
|
|
|
109 |
|
|
|
115 |
|
|
|
398 |
|
|
|
495 |
|
Less: Gain on Infinex
sale |
|
|
(721 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(721 |
) |
|
|
— |
|
Pre-tax Pre-Provision
income |
|
$ |
11,703 |
|
|
$ |
10,757 |
|
|
$ |
9,756 |
|
|
$ |
8,949 |
|
|
$ |
9,107 |
|
|
$ |
41,165 |
|
|
$ |
35,683 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROATCE |
|
|
17.88 |
% |
|
|
17.18 |
% |
|
|
15.50 |
% |
|
|
13.22 |
% |
|
|
13.97 |
% |
|
|
15.88 |
% |
|
|
13.64 |
% |
Pre-tax Pre-Provision
ROATCE |
|
|
27.24 |
% |
|
|
24.14 |
% |
|
|
21.89 |
% |
|
|
18.57 |
% |
|
|
18.60 |
% |
|
|
22.84 |
% |
|
|
18.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average tangible common
equity |
|
$ |
171,831 |
|
|
$ |
178,215 |
|
|
$ |
178,269 |
|
|
$ |
192,725 |
|
|
$ |
195,803 |
|
|
$ |
180,197 |
|
|
$ |
192,518 |
|
AVERAGE CONSOLIDATED BALANCE SHEETS AND NET INTEREST INCOME
(UNAUDITED)
|
|
Three Months Ended December 31, |
|
For the Three Months Ended |
|
|
|
2022 |
|
|
|
2021 |
|
|
December 31, 2022 |
|
September 30, 2022 |
(dollars in thousands) |
|
Average Balance |
|
Interest |
|
Average Yield/
Cost |
|
Average Balance |
|
Interest |
|
Average Yield/
Cost |
|
Average Balance |
|
Interest |
|
Average Yield/
Cost |
|
Average Balance |
|
Interest |
|
Average Yield/
Cost |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
1,217,998 |
|
|
$ |
15,010 |
|
|
4.93 |
% |
|
$ |
1,099,088 |
|
|
$ |
10,911 |
|
|
3.97 |
% |
|
$ |
1,217,998 |
|
|
$ |
15,010 |
|
|
4.93 |
% |
|
$ |
1,205,675 |
|
|
$ |
13,117 |
|
|
4.35 |
% |
Residential first mortgages |
|
|
79,859 |
|
|
|
732 |
|
|
3.67 |
|
|
|
93,997 |
|
|
|
756 |
|
|
3.22 |
|
|
|
79,859 |
|
|
|
732 |
|
|
3.67 |
|
|
|
82,336 |
|
|
|
715 |
|
|
3.47 |
|
Residential rentals |
|
|
322,135 |
|
|
|
3,393 |
|
|
4.21 |
|
|
|
173,238 |
|
|
|
1,760 |
|
|
4.06 |
|
|
|
322,135 |
|
|
|
3,393 |
|
|
4.21 |
|
|
|
223,532 |
|
|
|
2,286 |
|
|
4.09 |
|
Construction and land development |
|
|
20,194 |
|
|
|
342 |
|
|
6.77 |
|
|
|
38,345 |
|
|
|
431 |
|
|
4.50 |
|
|
|
20,194 |
|
|
|
342 |
|
|
6.77 |
|
|
|
27,770 |
|
|
|
386 |
|
|
5.56 |
|
Home equity and second mortgages |
|
|
25,442 |
|
|
|
426 |
|
|
6.70 |
|
|
|
26,160 |
|
|
|
232 |
|
|
3.55 |
|
|
|
25,442 |
|
|
|
426 |
|
|
6.70 |
|
|
|
25,612 |
|
|
|
352 |
|
|
5.50 |
|
Commercial loans |
|
|
27,619 |
|
|
|
776 |
|
|
11.24 |
|
|
|
52,765 |
|
|
|
626 |
|
|
4.75 |
|
|
|
27,619 |
|
|
|
776 |
|
|
11.24 |
|
|
|
52,280 |
|
|
|
865 |
|
|
6.62 |
|
Commercial equipment loans |
|
|
78,965 |
|
|
|
814 |
|
|
4.12 |
|
|
|
61,851 |
|
|
|
634 |
|
|
4.10 |
|
|
|
78,965 |
|
|
|
814 |
|
|
4.12 |
|
|
|
76,392 |
|
|
|
781 |
|
|
4.09 |
|
SBA PPP loans |
|
|
482 |
|
|
|
34 |
|
|
28.22 |
|
|
|
40,376 |
|
|
|
847 |
|
|
8.39 |
|
|
|
482 |
|
|
|
34 |
|
|
28.22 |
|
|
|
2,595 |
|
|
|
160 |
|
|
24.66 |
|
Consumer loans |
|
|
5,987 |
|
|
|
94 |
|
|
6.28 |
|
|
|
2,629 |
|
|
|
25 |
|
|
3.80 |
|
|
|
5,987 |
|
|
|
94 |
|
|
6.28 |
|
|
|
5,082 |
|
|
|
73 |
|
|
5.75 |
|
Allowance for credit losses |
|
|
(22,275 |
) |
|
|
— |
|
|
— |
|
|
|
(18,434 |
) |
|
|
— |
|
|
— |
|
|
|
(22,275 |
) |
|
|
— |
|
|
— |
|
|
|
(21,667 |
) |
|
|
— |
|
|
— |
|
Net loans (1) |
|
|
1,756,406 |
|
|
|
21,621 |
|
|
4.92 |
|
|
|
1,570,015 |
|
|
|
16,222 |
|
|
4.13 |
|
|
|
1,756,406 |
|
|
|
21,621 |
|
|
4.92 |
|
|
|
1,679,607 |
|
|
|
18,735 |
|
|
4.46 |
|
Taxable investment
securities |
|
|
445,252 |
|
|
|
3,329 |
|
|
2.99 |
|
|
|
465,771 |
|
|
|
1,441 |
|
|
1.24 |
|
|
|
445,252 |
|
|
|
3,329 |
|
|
2.99 |
|
|
|
464,560 |
|
|
|
2,338 |
|
|
2.01 |
|
Nontaxable investment
securities |
|
|
21,208 |
|
|
|
115 |
|
|
2.17 |
|
|
|
17,509 |
|
|
|
90 |
|
|
2.06 |
|
|
|
21,208 |
|
|
|
115 |
|
|
2.17 |
|
|
|
21,225 |
|
|
|
116 |
|
|
2.19 |
|
Interest-bearing deposits in
other banks |
|
|
14,257 |
|
|
|
110 |
|
|
3.09 |
|
|
|
41,736 |
|
|
|
25 |
|
|
0.24 |
|
|
|
14,257 |
|
|
|
110 |
|
|
3.09 |
|
|
|
18,930 |
|
|
|
85 |
|
|
1.80 |
|
Federal funds sold |
|
|
8,004 |
|
|
|
77 |
|
|
3.85 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
8,004 |
|
|
|
77 |
|
|
3.85 |
|
|
|
11,163 |
|
|
|
71 |
|
|
2.54 |
|
Total Interest-Earning
Assets |
|
|
2,245,127 |
|
|
|
25,252 |
|
|
4.50 |
|
|
|
2,095,031 |
|
|
|
17,778 |
|
|
3.39 |
|
|
|
2,245,127 |
|
|
|
25,252 |
|
|
4.50 |
|
|
|
2,195,485 |
|
|
|
21,345 |
|
|
3.89 |
|
Cash and cash equivalents |
|
|
13,203 |
|
|
|
|
|
|
|
100,480 |
|
|
|
|
|
|
|
13,203 |
|
|
|
|
|
|
|
18,975 |
|
|
|
|
|
Goodwill |
|
|
10,835 |
|
|
|
|
|
|
|
10,835 |
|
|
|
|
|
|
|
10,835 |
|
|
|
|
|
|
|
10,835 |
|
|
|
|
|
Core deposit intangible |
|
|
693 |
|
|
|
|
|
|
|
1,107 |
|
|
|
|
|
|
|
693 |
|
|
|
|
|
|
|
788 |
|
|
|
|
|
Other assets |
|
|
102,405 |
|
|
|
|
|
|
|
85,811 |
|
|
|
|
|
|
|
102,405 |
|
|
|
|
|
|
|
96,232 |
|
|
|
|
|
Total
Assets |
|
$ |
2,372,263 |
|
|
|
|
|
|
$ |
2,293,264 |
|
|
|
|
|
|
$ |
2,372,263 |
|
|
|
|
|
|
$ |
2,322,315 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand
deposits |
|
$ |
634,187 |
|
|
$ |
— |
|
|
— |
% |
|
$ |
449,272 |
|
|
$ |
— |
|
|
— |
% |
|
$ |
634,187 |
|
|
$ |
— |
|
|
— |
% |
|
$ |
644,606 |
|
|
$ |
— |
|
|
— |
% |
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
|
124,537 |
|
|
|
46 |
|
|
0.15 |
|
|
|
114,123 |
|
|
|
14 |
|
|
0.05 |
|
|
|
124,537 |
|
|
|
46 |
|
|
0.15 |
|
|
|
121,450 |
|
|
|
15 |
|
|
0.05 |
|
Demand deposits |
|
|
669,722 |
|
|
|
3,101 |
|
|
1.85 |
|
|
|
754,656 |
|
|
|
87 |
|
|
0.05 |
|
|
|
669,722 |
|
|
|
3,101 |
|
|
1.85 |
|
|
|
620,109 |
|
|
|
1,499 |
|
|
0.97 |
|
Money market deposits |
|
|
361,695 |
|
|
|
221 |
|
|
0.24 |
|
|
|
369,414 |
|
|
|
100 |
|
|
0.11 |
|
|
|
361,695 |
|
|
|
221 |
|
|
0.24 |
|
|
|
378,251 |
|
|
|
99 |
|
|
0.10 |
|
Certificates of deposit |
|
|
309,321 |
|
|
|
661 |
|
|
0.85 |
|
|
|
333,658 |
|
|
|
364 |
|
|
0.44 |
|
|
|
309,321 |
|
|
|
661 |
|
|
0.85 |
|
|
|
304,361 |
|
|
|
237 |
|
|
0.31 |
|
Total interest-bearing
deposits |
|
|
1,465,275 |
|
|
|
4,029 |
|
|
1.10 |
|
|
|
1,571,851 |
|
|
|
565 |
|
|
0.14 |
|
|
|
1,465,275 |
|
|
|
4,029 |
|
|
1.10 |
|
|
|
1,424,171 |
|
|
|
1,850 |
|
|
0.52 |
|
Total Deposits |
|
|
2,099,462 |
|
|
|
4,029 |
|
|
0.77 |
|
|
|
2,021,123 |
|
|
|
565 |
|
|
0.11 |
|
|
|
2,099,462 |
|
|
|
4,029 |
|
|
0.77 |
|
|
|
2,068,777 |
|
|
|
1,850 |
|
|
0.36 |
|
Long-term debt |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
12,237 |
|
|
|
6 |
|
|
0.20 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
Short-term debt |
|
|
36,332 |
|
|
|
358 |
|
|
3.94 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
36,332 |
|
|
|
358 |
|
|
3.94 |
|
|
|
8,310 |
|
|
|
52 |
|
|
2.50 |
|
Subordinated Notes |
|
|
19,557 |
|
|
|
252 |
|
|
5.15 |
|
|
|
19,501 |
|
|
|
252 |
|
|
5.17 |
|
|
|
19,557 |
|
|
|
252 |
|
|
5.15 |
|
|
|
19,543 |
|
|
|
252 |
|
|
5.16 |
|
Guaranteed preferred
beneficial interest in junior subordinated debentures |
|
|
12,000 |
|
|
|
182 |
|
|
6.07 |
|
|
|
12,000 |
|
|
|
74 |
|
|
2.47 |
|
|
|
12,000 |
|
|
|
182 |
|
|
6.07 |
|
|
|
12,000 |
|
|
|
134 |
|
|
4.47 |
|
Total Debt |
|
|
67,889 |
|
|
|
792 |
|
|
4.67 |
|
|
|
43,738 |
|
|
|
332 |
|
|
3.04 |
|
|
|
67,889 |
|
|
|
792 |
|
|
4.67 |
|
|
|
39,853 |
|
|
|
438 |
|
|
4.40 |
|
Total Interest-Bearing
Liabilities |
|
|
1,533,164 |
|
|
|
4,821 |
|
|
1.26 |
|
|
|
1,615,589 |
|
|
|
897 |
|
|
0.22 |
|
|
|
1,533,164 |
|
|
|
4,821 |
|
|
1.26 |
|
|
|
1,464,024 |
|
|
|
2,288 |
|
|
0.63 |
|
Total Funds |
|
|
2,167,351 |
|
|
|
4,821 |
|
|
0.89 |
|
|
|
2,064,861 |
|
|
|
897 |
|
|
0.17 |
|
|
|
2,167,351 |
|
|
|
4,821 |
|
|
0.89 |
|
|
|
2,108,630 |
|
|
|
2,288 |
|
|
0.43 |
|
Other liabilities |
|
|
21,553 |
|
|
|
|
|
|
|
20,658 |
|
|
|
|
|
|
|
21,553 |
|
|
|
|
|
|
|
23,847 |
|
|
|
|
|
Stockholders' equity |
|
|
183,359 |
|
|
|
|
|
|
|
207,745 |
|
|
|
|
|
|
|
183,359 |
|
|
|
|
|
|
|
189,838 |
|
|
|
|
|
Total Liabilities and
Stockholders' Equity |
|
$ |
2,372,263 |
|
|
|
|
|
|
$ |
2,293,264 |
|
|
|
|
|
|
$ |
2,372,263 |
|
|
|
|
|
|
$ |
2,322,315 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
$ |
20,431 |
|
|
|
|
|
|
$ |
16,881 |
|
|
|
|
|
|
$ |
20,431 |
|
|
|
|
|
|
$ |
19,057 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread |
|
|
|
|
|
3.24 |
% |
|
|
|
|
|
3.17 |
% |
|
|
|
|
|
3.24 |
% |
|
|
|
|
|
3.26 |
% |
Net yield on interest-earning
assets |
|
|
|
|
|
3.64 |
% |
|
|
|
|
|
3.22 |
% |
|
|
|
|
|
3.64 |
% |
|
|
|
|
|
3.47 |
% |
Average interest-earning
assets to average interest-bearing liabilities |
|
|
|
|
|
146.44 |
% |
|
|
|
|
|
129.68 |
% |
|
|
|
|
|
146.44 |
% |
|
|
|
|
|
149.96 |
% |
Average loans to average
deposits |
|
|
|
|
|
83.66 |
% |
|
|
|
|
|
77.68 |
% |
|
|
|
|
|
83.66 |
% |
|
|
|
|
|
81.19 |
% |
Average transaction deposits
to total average deposits ** |
|
|
|
|
|
85.27 |
% |
|
|
|
|
|
83.49 |
% |
|
|
|
|
|
85.27 |
% |
|
|
|
|
|
85.29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of funds |
|
|
|
|
|
0.89 |
% |
|
|
|
|
|
0.17 |
% |
|
|
|
|
|
0.89 |
% |
|
|
|
|
|
0.43 |
% |
Cost of deposits |
|
|
|
|
|
0.77 |
% |
|
|
|
|
|
0.11 |
% |
|
|
|
|
|
0.77 |
% |
|
|
|
|
|
0.36 |
% |
Cost of debt |
|
|
|
|
|
4.67 |
% |
|
|
|
|
|
3.04 |
% |
|
|
|
|
|
4.67 |
% |
|
|
|
|
|
4.40 |
% |
(1) Loan average balance includes non-accrual
loans. There are no tax equivalency adjustments. There was $22,000,
$161,000 and $91,000 of accretion interest for the three months
ended December 31, 2022 and 2021, and September 30, 2022,
respectively.
____________________________________
** Transaction deposits exclude time deposits.
AVERAGE CONSOLIDATED BALANCE SHEETS AND NET INTEREST INCOME
(UNAUDITED)
|
|
For the Years Ended December 31, |
|
|
|
2022 |
|
|
|
2021 |
|
(dollars in thousands) |
|
Average Balance |
|
Interest |
|
Average Yield/
Cost |
|
Average Balance |
|
Interest |
|
Average Yield/
Cost |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
1,179,776 |
|
|
$ |
50,706 |
|
|
4.30 |
% |
|
$ |
1,085,823 |
|
|
$ |
43,536 |
|
|
4.01 |
% |
Residential first mortgages |
|
|
83,485 |
|
|
|
2,889 |
|
|
3.46 |
|
|
|
107,011 |
|
|
|
3,250 |
|
|
3.04 |
|
Residential rentals |
|
|
234,800 |
|
|
|
9,509 |
|
|
4.05 |
|
|
|
151,606 |
|
|
|
6,180 |
|
|
4.08 |
|
Construction and land development |
|
|
27,947 |
|
|
|
1,496 |
|
|
5.35 |
|
|
|
36,891 |
|
|
|
1,658 |
|
|
4.49 |
|
Home equity and second mortgages |
|
|
25,774 |
|
|
|
1,298 |
|
|
5.04 |
|
|
|
28,051 |
|
|
|
977 |
|
|
3.48 |
|
Commercial loans |
|
|
42,303 |
|
|
|
2,708 |
|
|
6.40 |
|
|
|
46,390 |
|
|
|
2,032 |
|
|
4.38 |
|
Commercial equipment loans |
|
|
71,416 |
|
|
|
2,937 |
|
|
4.11 |
|
|
|
60,845 |
|
|
|
2,567 |
|
|
4.22 |
|
SBA PPP loans |
|
|
8,770 |
|
|
|
960 |
|
|
10.95 |
|
|
|
82,901 |
|
|
|
5,203 |
|
|
6.28 |
|
Consumer loans |
|
|
4,590 |
|
|
|
235 |
|
|
5.12 |
|
|
|
1,783 |
|
|
|
73 |
|
|
4.09 |
|
Allowance for credit losses |
|
|
(21,593 |
) |
|
|
— |
|
|
— |
|
|
|
(18,788 |
) |
|
|
— |
|
|
— |
|
Loan portfolio
(1) |
|
|
1,657,268 |
|
|
|
72,738 |
|
|
4.39 |
|
|
|
1,582,513 |
|
|
|
65,476 |
|
|
4.14 |
|
Taxable investment
securities |
|
|
469,393 |
|
|
|
9,046 |
|
|
1.93 |
|
|
|
336,267 |
|
|
|
4,623 |
|
|
1.37 |
|
Nontaxable investment
securities |
|
|
20,325 |
|
|
|
442 |
|
|
2.17 |
|
|
|
17,515 |
|
|
|
369 |
|
|
2.11 |
|
Interest-bearing deposits in
other banks |
|
|
24,844 |
|
|
|
319 |
|
|
1.28 |
|
|
|
33,095 |
|
|
|
70 |
|
|
0.21 |
|
Federal funds sold |
|
|
6,371 |
|
|
|
162 |
|
|
2.54 |
|
|
|
20,916 |
|
|
|
21 |
|
|
0.10 |
|
Total Interest-Earning
Assets |
|
|
2,178,201 |
|
|
|
82,707 |
|
|
3.80 |
|
|
|
1,990,306 |
|
|
|
70,559 |
|
|
3.55 |
|
Cash and cash equivalents |
|
|
43,993 |
|
|
|
|
|
|
|
78,849 |
|
|
|
|
|
Goodwill |
|
|
10,835 |
|
|
|
|
|
|
|
10,835 |
|
|
|
|
|
Core deposit intangible |
|
|
840 |
|
|
|
|
|
|
|
1,290 |
|
|
|
|
|
Other assets |
|
|
94,732 |
|
|
|
|
|
|
|
86,579 |
|
|
|
|
|
Total
Assets |
|
$ |
2,328,601 |
|
|
|
|
|
|
$ |
2,167,859 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand
deposits |
|
$ |
634,805 |
|
|
$ |
— |
|
|
— |
% |
|
$ |
417,935 |
|
|
$ |
— |
|
|
— |
% |
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
|
121,975 |
|
|
|
92 |
|
|
0.08 |
|
|
|
108,189 |
|
|
|
54 |
|
|
0.05 |
|
Demand deposits |
|
|
621,755 |
|
|
|
5,133 |
|
|
0.83 |
|
|
|
660,330 |
|
|
|
345 |
|
|
0.05 |
|
Money market deposits |
|
|
376,039 |
|
|
|
523 |
|
|
0.14 |
|
|
|
358,006 |
|
|
|
397 |
|
|
0.11 |
|
Certificates of deposit |
|
|
313,429 |
|
|
|
1,463 |
|
|
0.47 |
|
|
|
342,755 |
|
|
|
1,805 |
|
|
0.53 |
|
Total Interest-bearing
deposits |
|
|
1,433,198 |
|
|
|
7,211 |
|
|
0.50 |
|
|
|
1,469,280 |
|
|
|
2,601 |
|
|
0.18 |
|
Total Deposits |
|
|
2,068,003 |
|
|
|
7,211 |
|
|
0.35 |
|
|
|
1,887,215 |
|
|
|
2,601 |
|
|
0.14 |
|
Debt: |
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
3,848 |
|
|
|
48 |
|
|
1.25 |
|
|
|
23,072 |
|
|
|
219 |
|
|
0.95 |
|
Short-term borrowings |
|
|
12,696 |
|
|
|
426 |
|
|
3.36 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
Subordinated Notes |
|
|
19,536 |
|
|
|
1,006 |
|
|
5.15 |
|
|
|
19,488 |
|
|
|
1,006 |
|
|
5.16 |
|
Guaranteed preferred beneficial interest in junior subordinated
debentures |
|
|
12,000 |
|
|
|
491 |
|
|
4.09 |
|
|
|
12,000 |
|
|
|
299 |
|
|
2.49 |
|
Total Debt |
|
|
48,080 |
|
|
|
1,971 |
|
|
4.10 |
|
|
|
54,560 |
|
|
|
1,524 |
|
|
2.79 |
|
Total Interest-Bearing
Liabilities |
|
|
1,481,278 |
|
|
|
9,182 |
|
|
0.62 |
|
|
|
1,523,840 |
|
|
|
4,125 |
|
|
0.27 |
|
Total funds |
|
|
2,116,083 |
|
|
|
9,182 |
|
|
0.43 |
|
|
|
1,941,775 |
|
|
|
4,125 |
|
|
0.21 |
|
Other liabilities |
|
|
20,646 |
|
|
|
|
|
|
|
21,441 |
|
|
|
|
|
Stockholders' equity |
|
|
191,872 |
|
|
|
|
|
|
|
204,643 |
|
|
|
|
|
Total Liabilities and
Stockholders' Equity |
|
$ |
2,328,601 |
|
|
|
|
|
|
$ |
2,167,859 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
$ |
73,525 |
|
|
|
|
|
|
$ |
66,434 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread |
|
|
|
|
|
3.18 |
% |
|
|
|
|
|
3.28 |
% |
Net yield on interest-earning
assets |
|
|
|
|
|
3.38 |
% |
|
|
|
|
|
3.34 |
% |
Average interest-earning
assets to average interest-bearing liabilities |
|
|
|
|
|
147.05 |
% |
|
|
|
|
|
130.61 |
% |
Average loans to average
deposits |
|
|
|
|
|
80.14 |
% |
|
|
|
|
|
83.85 |
% |
Average transaction deposits
to total average deposits ** |
|
|
|
|
|
84.84 |
% |
|
|
|
|
|
81.84 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of funds |
|
|
|
|
|
0.43 |
% |
|
|
|
|
|
0.21 |
% |
Cost of deposits |
|
|
|
|
|
0.35 |
% |
|
|
|
|
|
0.14 |
% |
Cost of debt |
|
|
|
|
|
4.10 |
% |
|
|
|
|
|
2.79 |
% |
(1) Loan average balance includes non-accrual
loans. There are no tax equivalency adjustments. There was $189,000
and $417,000 of accretion interest years ended December 31,
2022 and 2021, respectively.
____________________________________
** Transaction deposits exclude time deposits.
SUMMARY OF LOAN PORTFOLIO (UNAUDITED)
(dollars in thousands)
BY LOAN TYPE |
|
December 31,
2022 |
|
% |
|
September 30,
2022 |
|
% |
|
June 30,
2022 |
|
% |
|
March 31,
2022 |
|
% |
|
December 31,
2021** |
|
% |
Portfolio Type: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
1,232,826 |
|
|
67.69 |
% |
|
$ |
1,202,660 |
|
|
68.98 |
% |
|
$ |
1,178,758 |
|
|
71.33 |
% |
|
$ |
1,177,761 |
|
|
72.28 |
% |
|
$ |
1,113,793 |
|
|
70.54 |
% |
Residential first mortgages |
|
|
79,872 |
|
|
4.39 |
|
|
|
83,081 |
|
|
4.77 |
|
|
|
84,782 |
|
|
5.13 |
|
|
|
86,416 |
|
|
5.30 |
|
|
|
92,710 |
|
|
5.87 |
|
Residential rentals |
|
|
338,292 |
|
|
18.58 |
|
|
|
282,365 |
|
|
16.20 |
|
|
|
210,116 |
|
|
12.72 |
|
|
|
191,065 |
|
|
11.73 |
|
|
|
194,911 |
|
|
12.35 |
|
Construction and land development |
|
|
17,259 |
|
|
0.95 |
|
|
|
23,197 |
|
|
1.33 |
|
|
|
31,068 |
|
|
1.88 |
|
|
|
30,649 |
|
|
1.88 |
|
|
|
35,502 |
|
|
2.25 |
|
Home equity and second mortgages |
|
|
25,602 |
|
|
1.41 |
|
|
|
26,054 |
|
|
1.49 |
|
|
|
25,200 |
|
|
1.53 |
|
|
|
26,445 |
|
|
1.62 |
|
|
|
25,661 |
|
|
1.63 |
|
Commercial loans |
|
|
42,055 |
|
|
2.31 |
|
|
|
41,615 |
|
|
2.39 |
|
|
|
43,472 |
|
|
2.63 |
|
|
|
48,948 |
|
|
3.00 |
|
|
|
50,512 |
|
|
3.20 |
|
Consumer loans |
|
|
6,272 |
|
|
0.34 |
|
|
|
5,754 |
|
|
0.33 |
|
|
|
4,511 |
|
|
0.27 |
|
|
|
3,592 |
|
|
0.22 |
|
|
|
3,015 |
|
|
0.19 |
|
Commercial equipment |
|
|
78,890 |
|
|
4.33 |
|
|
|
78,551 |
|
|
4.51 |
|
|
|
74,552 |
|
|
4.51 |
|
|
|
64,662 |
|
|
3.97 |
|
|
|
62,706 |
|
|
3.97 |
|
Total portfolio loans |
|
|
1,821,068 |
|
|
100.00 |
% |
|
|
1,743,277 |
|
|
100.00 |
% |
|
|
1,652,459 |
|
|
100.00 |
% |
|
|
1,629,538 |
|
|
100.00 |
% |
|
|
1,578,810 |
|
|
100.00 |
% |
Less: Allowance for credit
losses |
|
|
(22,890 |
) |
|
(1.26 |
) |
|
|
(22,027 |
) |
|
(1.26 |
) |
|
|
(21,404 |
) |
|
(1.30 |
) |
|
|
(21,382 |
) |
|
(1.31 |
) |
|
|
(18,417 |
) |
|
(1.17 |
) |
Total net portfolio loans |
|
|
1,798,178 |
|
|
|
|
|
1,721,250 |
|
|
|
|
|
1,631,055 |
|
|
|
|
|
1,608,156 |
|
|
|
|
|
1,560,393 |
|
|
|
U.S. SBA PPP loans |
|
|
339 |
|
|
|
|
|
1,211 |
|
|
|
|
|
5,022 |
|
|
|
|
|
15,279 |
|
|
|
|
|
26,398 |
|
|
|
Total net loans |
|
$ |
1,798,517 |
|
|
|
|
$ |
1,722,461 |
|
|
|
|
$ |
1,636,077 |
|
|
|
|
$ |
1,623,435 |
|
|
|
|
$ |
1,586,791 |
|
|
|
____________________________________
** December 31, 2021 reported balance are shown net of
deferred costs and fees to conform with the current period's
presentation.
END OF PERIOD CONTRACTUAL RATES (UNAUDITED)
The following table is based on contractual
interest rates and does not include the amortization of deferred
costs and fees or assumptions regarding non-accrual interest:
|
|
December 31,
2022 |
|
September 30,
2022 |
|
June 30,
2022 |
|
March 31,
2022 |
|
December 31,
2021 |
(dollars in thousands) |
|
EOP Contractual
Interest rate |
|
EOP Contractual
Interest rate |
|
EOP Contractual
Interest rate |
|
EOP Contractual
Interest rate |
|
EOP Contractual
Interest rate |
Commercial real estate |
|
4.86 |
% |
|
4.36 |
% |
|
4.00 |
% |
|
3.79 |
% |
|
3.79 |
% |
Residential first
mortgages |
|
3.84 |
% |
|
3.84 |
% |
|
3.83 |
% |
|
3.80 |
% |
|
3.80 |
% |
Residential rentals |
|
4.53 |
% |
|
4.34 |
% |
|
4.03 |
% |
|
3.78 |
% |
|
3.81 |
% |
Construction and land
development |
|
6.73 |
% |
|
5.61 |
% |
|
4.57 |
% |
|
4.36 |
% |
|
4.38 |
% |
Home equity and second
mortgages |
|
7.14 |
% |
|
5.64 |
% |
|
4.19 |
% |
|
3.50 |
% |
|
3.51 |
% |
Commercial loans |
|
7.34 |
% |
|
5.93 |
% |
|
4.79 |
% |
|
4.47 |
% |
|
4.48 |
% |
Consumer loans |
|
5.26 |
% |
|
5.12 |
% |
|
5.13 |
% |
|
4.33 |
% |
|
4.37 |
% |
Commercial equipment |
|
4.43 |
% |
|
4.37 |
% |
|
4.30 |
% |
|
4.29 |
% |
|
4.32 |
% |
U.S. SBA PPP loans |
|
1.00 |
% |
|
1.00 |
% |
|
1.00 |
% |
|
1.00 |
% |
|
1.00 |
% |
Total Loans |
|
4.84 |
% |
|
4.41 |
% |
|
4.04 |
% |
|
3.81 |
% |
|
3.80 |
% |
|
|
|
|
|
|
|
|
|
|
|
Yields without U.S. SBA PPP
Loans |
|
4.84 |
% |
|
4.41 |
% |
|
4.05 |
% |
|
3.85 |
% |
|
3.84 |
% |
ALLOWANCE FOR CREDIT LOSSES (UNAUDITED)
|
|
Three Months Ended** |
(dollars in thousands) |
|
December 31,
2022 |
|
September 30,
2022 |
|
June 30,
2022 |
|
March 31,
2022 |
|
December 31,
2021 |
Beginning of period |
|
$ |
22,027 |
|
|
$ |
21,404 |
|
|
$ |
21,382 |
|
|
$ |
18,417 |
|
|
$ |
18,579 |
|
|
|
|
|
|
|
|
|
|
|
|
Impact of ASC 326
Adoption |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,496 |
|
|
|
— |
|
Charge-offs |
|
|
(29 |
) |
|
|
(92 |
) |
|
|
(447 |
) |
|
|
— |
|
|
|
(181 |
) |
Recoveries |
|
|
24 |
|
|
|
21 |
|
|
|
44 |
|
|
|
19 |
|
|
|
19 |
|
Net (charge-offs)
recoveries |
|
|
(5 |
) |
|
|
(71 |
) |
|
|
(403 |
) |
|
|
19 |
|
|
|
(162 |
) |
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses |
|
|
868 |
|
|
|
694 |
|
|
|
425 |
|
|
|
450 |
|
|
|
— |
|
End of period |
|
$ |
22,890 |
|
|
$ |
22,027 |
|
|
$ |
21,404 |
|
|
$ |
21,382 |
|
|
$ |
18,417 |
|
|
|
|
|
|
|
|
|
|
|
|
Net (charge-offs) recoveries
to average portfolio loans (annualized)(1) |
|
|
0.00 |
% |
|
(0.02 |
)% |
|
(0.10 |
)% |
|
|
0.00 |
% |
|
(0.04 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Breakdown of general and specific allowance as a
percentage of total portfolio loans(1) |
General allowance |
|
$ |
22,781 |
|
|
$ |
21,919 |
|
|
$ |
21,108 |
|
|
$ |
21,087 |
|
|
$ |
18,151 |
|
Specific allowance |
|
|
109 |
|
|
|
108 |
|
|
|
296 |
|
|
|
295 |
|
|
|
266 |
|
|
|
$ |
22,890 |
|
|
$ |
22,027 |
|
|
$ |
21,404 |
|
|
$ |
21,382 |
|
|
$ |
18,417 |
|
|
|
|
|
|
|
|
|
|
|
|
General allowance |
|
|
1.25 |
% |
|
|
1.26 |
% |
|
|
1.28 |
% |
|
|
1.29 |
% |
|
|
1.15 |
% |
Specific allowance |
|
|
0.01 |
% |
|
|
0.00 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
Allowance to total portfolio
loans |
|
|
1.26 |
% |
|
|
1.26 |
% |
|
|
1.30 |
% |
|
|
1.31 |
% |
|
|
1.17 |
% |
|
|
|
|
|
|
|
|
|
|
|
Allowance to non-acquired
loans |
|
n/a(2) |
|
n/a(2) |
|
n/a(2) |
|
n/a(2) |
|
|
1.20 |
% |
|
|
|
|
|
|
|
|
|
|
|
Allowance+ Non-PCI FV
Mark |
|
n/a(3) |
|
n/a(3) |
|
n/a(3) |
|
n/a(3) |
|
$ |
18,815 |
|
Allowance+ Non-PCI FV Mark to
total portfolio loans |
|
n/a(3) |
|
n/a(3) |
|
n/a(3) |
|
n/a(3) |
|
|
1.19 |
% |
____________________________________
** The Company implemented the CECL accounting standard
effective January 1, 2022. The Company used an incurred loss
methodology for quarters displayed before March 31, 2022.
(1) Portfolio loans include all
loan portfolios except the U.S. SBA PPP loan portfolio.
(2) Allowance to non-acquired loans is no longer
relevant as the ACL considers all portfolio loans.
(3) Allowance to non-acquired loans and Non-PCI FV
Mark are no longer relevant as the ACL considers all loan
portfolios.
CLASSIFIED AND SPECIAL MENTION ASSETS (UNAUDITED)
The following is a breakdown of the Company’s
classified and special mention assets at December 31,
2022, 2021, 2020, 2019 and 2018, respectively:
|
|
As of |
(dollars in thousands) |
|
12/31/2022 |
|
12/31/2021 |
|
12/31/2020 |
|
12/31/2019 |
|
12/31/2018 |
Classified loans |
|
|
|
|
|
|
|
|
|
|
Substandard |
|
$ |
6,115 |
|
|
$ |
5,211 |
|
|
$ |
19,249 |
|
|
$ |
26,863 |
|
|
$ |
32,226 |
|
Doubtful |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total classified loans |
|
|
6,115 |
|
|
|
5,211 |
|
|
|
19,249 |
|
|
|
26,863 |
|
|
|
32,226 |
|
Special mention loans |
|
|
4,361 |
|
|
|
— |
|
|
|
7,672 |
|
|
|
— |
|
|
|
— |
|
Total classified and special
mention loans |
|
$ |
10,476 |
|
|
$ |
5,211 |
|
|
$ |
26,921 |
|
|
$ |
26,863 |
|
|
$ |
32,226 |
|
|
|
|
|
|
|
|
|
|
|
|
Classified loans |
|
$ |
6,115 |
|
|
$ |
5,211 |
|
|
$ |
19,249 |
|
|
$ |
26,863 |
|
|
$ |
32,226 |
|
Classified securities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
482 |
|
Other real estate owned |
|
|
— |
|
|
|
— |
|
|
|
3,109 |
|
|
|
7,773 |
|
|
|
8,111 |
|
Total classified assets |
|
$ |
6,115 |
|
|
$ |
5,211 |
|
|
$ |
22,358 |
|
|
$ |
34,636 |
|
|
$ |
40,819 |
|
|
|
|
|
|
|
|
|
|
|
|
Total classified assets as a
percentage of total assets |
|
|
0.25 |
% |
|
|
0.22 |
% |
|
|
1.10 |
% |
|
|
1.93 |
% |
|
|
2.42 |
% |
Total classified assets as a
percentage of Risk Based Capital |
|
|
2.23 |
% |
|
|
2.10 |
% |
|
|
9.61 |
% |
|
|
16.21 |
% |
|
|
21.54 |
% |
SUMMARY OF DEPOSITS (UNAUDITED)
|
|
December 31, 2022 |
|
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2021 |
(dollars in thousands) |
|
Balance |
|
% |
|
Balance |
|
% |
|
Balance |
|
% |
|
Balance |
|
% |
|
Balance |
|
% |
Noninterest-bearing demand |
|
$ |
630,120 |
|
|
30.17 |
% |
|
$ |
647,432 |
|
|
30.45 |
% |
|
$ |
635,649 |
|
|
30.48 |
% |
|
$ |
644,385 |
|
|
30.75 |
% |
|
$ |
445,778 |
|
|
21.68 |
% |
Interest-bearing: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
638,876 |
|
|
30.59 |
% |
|
|
691,987 |
|
|
32.54 |
% |
|
|
635,344 |
|
|
30.47 |
% |
|
|
618,869 |
|
|
29.54 |
% |
|
|
790,481 |
|
|
38.45 |
% |
Money market deposits |
|
|
347,872 |
|
|
16.66 |
% |
|
|
371,175 |
|
|
17.45 |
% |
|
|
380,712 |
|
|
18.26 |
% |
|
|
387,700 |
|
|
18.51 |
% |
|
|
372,717 |
|
|
18.13 |
% |
Savings |
|
|
124,533 |
|
|
5.96 |
% |
|
|
123,564 |
|
|
5.81 |
% |
|
|
119,363 |
|
|
5.72 |
% |
|
|
124,038 |
|
|
5.92 |
% |
|
|
119,767 |
|
|
5.82 |
% |
Certificates of deposit |
|
|
347,062 |
|
|
16.62 |
% |
|
|
292,399 |
|
|
13.75 |
% |
|
|
314,308 |
|
|
15.07 |
% |
|
|
320,091 |
|
|
15.28 |
% |
|
|
327,421 |
|
|
15.92 |
% |
Total interest-bearing |
|
|
1,458,343 |
|
|
69.83 |
% |
|
|
1,479,125 |
|
|
69.55 |
% |
|
|
1,449,727 |
|
|
69.52 |
% |
|
|
1,450,698 |
|
|
69.25 |
% |
|
|
1,610,386 |
|
|
78.32 |
% |
Total Deposits |
|
$ |
2,088,463 |
|
|
100.00 |
% |
|
$ |
2,126,557 |
|
|
100.00 |
% |
|
$ |
2,085,376 |
|
|
100.00 |
% |
|
$ |
2,095,083 |
|
|
100.00 |
% |
|
$ |
2,056,164 |
|
|
100.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction accounts |
|
$ |
1,741,401 |
|
|
83.38 |
% |
|
$ |
1,834,158 |
|
|
86.25 |
% |
|
$ |
1,771,068 |
|
|
84.93 |
% |
|
$ |
1,774,992 |
|
|
84.72 |
% |
|
$ |
1,728,743 |
|
|
84.08 |
% |
Community Financial (NASDAQ:TCFC)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Community Financial (NASDAQ:TCFC)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024