The Company’s Board of Directors declared a quarterly cash dividend of
“The third quarter represented a transition for the Company, as we continue to wind down from the unprecedented events of the pandemic, and we refocus on more traditional banking activities,” stated
“The highly successful PPP lending program sponsored by the SBA has helped thousands of businesses in the
As of
The Company’s net interest margin was 3.39% in the third quarter of 2021, a 43-basis point improvement compared to 2.96% in the preceding quarter, and a two-basis point improvement compared to 3.37% in the third quarter a year ago. “PPP loan fees and interest on net interest income had a positive impact on net interest margin for the third quarter of 2021. However, liquidity levels have been higher than usual throughout the year, due to larger deposit balances and the resulting effect on the mix of our earning assets, with higher excess reserves at the Fed continuing to put pressure on margin,” said Keller. PPP loan fees and interest added 40 basis points to the net interest margin for the third quarter of 2021, compared to adding 11 basis points in the preceding quarter. Excess reserves had a negative impact on the net interest margin for the third quarter of 2021, contracting the net interest margin by 92 basis points, compared to a 97 basis point decrease for the second quarter of 2021.
“During the third quarter of 2021, we booked a
Third Quarter 2021 Financial Highlights (at or for the period ended
- Net income increased 26.4% to
$1.57 million in the third quarter of 2021, compared to$1.24 million in the third quarter a year ago, and decreased compared to the record results of$2.41 million in the preceding quarter. Earnings per share was$0.18 in the third quarter of 2021, compared to$0.27 in the prior quarter, and$0.14 in the third quarter a year ago. - Pre-tax core earnings excluding gains on loan sales, PPP loan fees and loan loss provisions, was down
$111,000 or 6.3% to$1.64 million in the third quarter compared to the third quarter a year ago. - Total assets increased
$113.4 million , or 17.8%, to$749.7 million atSeptember 30, 2021 , compared to$636.3 million a year earlier, but decreased$46.2 million , or 5.8% compared to$795.9 million three months earlier. Average assets for the quarter totaled$758.4 million , an increase of$151.5 million , or 25.0%, from the third quarter a year ago and a decrease of$22.2 million , or 2.9%, compared with the prior quarter. - Net interest income, before the provision for loan losses, increased 25.9% to
$6.25 million in the third quarter of 2021, compared to$4.96 million in the third quarter a year ago. The provision for loan losses was$150,000 in the third quarter of 2021, compared to$250,000 in the third quarter of 2020. - Non-interest income was
$173,000 during the third quarter of 2021, compared to$352,000 for the third quarter a year ago, and a record$2.00 million in the second quarter of 2021. Impacting non-interest income for the prior quarter was the proceeds from the$1.83 million CDFI Rapid Response Grant. - Operating revenue (net interest income before the provision for loan losses plus non-interest income) increased 20.8% to
$6.42 million in the third quarter of 2021, compared to$5.31 million in the third quarter of 2020. - Net interest margin for the third quarter improved to 3.39%, compared to 2.96% in the preceding quarter and 3.37% in the third quarter a year ago. The expansion in net interest margin in the third quarter of 2021 as compared to the prior quarter was largely due to the increase in recognition of PPP origination fee income due to
$25.0 in PPP loan forgiveness. Excluding all PPP-related income and balances, the net interest margin would have been 3.24% in the third quarter of 2021, and 3.26% in the second quarter of 2021. The average interest yield on non-PPP loans in the third quarter was 4.65%, compared to 4.87% in the prior quarter. The average cost of funds in the third quarter was 0.25%, a one basis point decline compared to the prior quarter and a 26 basis points decline compared to the prior year. - Net loans increased
$40.8 million , or 8.5%, to$518.7 million atSeptember 30, 2021 , compared to$477.9 million a year ago, and decreased modestly compared to$519.0 million three months earlier, largely due to$25.0 million in PPP loan forgiveness during the current quarter. AtSeptember 30, 2021 , net non-PPP loans totaled$455.1 million , a 5.8% increase compared to$430.1 million atJune 30, 2021 , and a 14.7% increase compared to$396.7 million atSeptember 30, 2020 . In addition, atSeptember 30, 2021 the unused portion of credit commitments totaled$117.2 million compared to$112.6 million in the prior quarter and$89.8 million a year ago. - Total deposits increased
$123.8 million , or 23.3%, to$654.4 million atSeptember 30, 2021 , compared to$530.6 million a year ago and decreased$43.5 million , or 6.2% compared to$697.9 million three months earlier. The decrease compared to the prior quarter end was largely due to planned reductions in wholesale deposits. Noninterest bearing demand deposit accounts increased 11.7% compared to a year ago and represented 39.1% of total deposits. Savings, NOW and money market accounts increased 81.6% compared to a year ago and represented 51.6% of total deposits. CDs decreased 47.4% when compared to a year ago and comprised 9.3% of the total deposit portfolio, atSeptember 30, 2021 . - Asset quality remained exemplary with
$31,200 of nonperforming loans atSeptember 30, 2021 , representing 0.01% of total loans. This compares to nonperforming loans at 0.01% of total loans atJune 30, 2021 , and 0.04% atSeptember 30, 2020 . - The allowance for loan losses increased to
$6.08 million , or 1.17% of total loans atSeptember 30, 2021 , compared to$5.35 million , or 1.12% of total loans atSeptember 30, 2020 . The allowance, as a percentage of non-guaranteed loans, was 1.37% atSeptember 30, 2021 , compared to 1.41% a year ago. The allowance for loan losses reflects management’s assessment of the current economic environment. - Total equity increased 11.4% to
$66.8 million as ofSeptember 30, 2021 , compared to a year ago. The Bank’s capital levels remained well aboveFDIC “Well Capitalized” standards as ofSeptember 30, 2021 , with a Tier 1 Common Equity capital ratio of 12.53%; Total risk-based capital ratio of 13.70%; and Tier 1 leverage ratio of 8.75%. - Book value per common share totaled
$7.54 as ofSeptember 30, 2021 , an increase of 9.9% from a year ago. - Declared a quarterly cash dividend of
$0.04 per share. The dividend is payableDecember 3, 2021 to shareholders of record onNovember 23, 2021 .
On
For additional information on the CDFI Rapid Response Program please visit https://www.cdfifund.gov/programs-training/programs/rrp
In December, 2020,
About
Forward-Looking Statements
This release may contain forward-looking statements, such as, among others, statements about plans, expectations and goals concerning growth and improvement. Forward-looking statements are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, including the real estate market in
FINANCIAL TABLES TO FOLLOW:
UNAUDITED SUMMARY FINANCIAL STATEMENTS | |||||||||||||||||
(Dollars in thousands, except earnings per share) | |||||||||||||||||
INCOME STATEMENT | Three Months Ended | ||||||||||||||||
2021 | 2021 | Qtr over Qtr | 2020 | Qtr over Yr Ago Qtr | |||||||||||||
% Change | % Change | ||||||||||||||||
Interest income | $ | 6,677 | $ | 6,035 | 10.6 | % | $ | 5,664 | 17.9 | % | |||||||
Interest expense | 432 | 456 | -5.3 | % | 702 | -38.5 | % | ||||||||||
Net interest income before provision | 6,245 | 5,579 | 11.9 | % | 4,962 | 25.9 | % | ||||||||||
Provision for Loan Losses | 150 | 250 | -40.0 | % | 250 | -40.0 | % | ||||||||||
Net interest income after provision | 6,095 | 5,329 | 14.4 | % | 4,712 | 29.4 | % | ||||||||||
Non-interest income | 173 | 1,997 | -91.3 | % | 352 | -50.9 | % | ||||||||||
Non-interest expense | 4,045 | 3,869 | 4.5 | % | 3,276 | 23.5 | % | ||||||||||
Income before provision for income taxes | 2,223 | 3,457 | -35.7 | % | 1,788 | 24.3 | % | ||||||||||
Provision for income taxes | 654 | 1,050 | -37.7 | % | 547 | 19.6 | % | ||||||||||
Net income | $ | 1,569 | $ | 2,407 | -34.8 | % | $ | 1,241 | 26.4 | % | |||||||
Basic earnings per common share | $ | 0.18 | $ | 0.27 | -34.9 | % | $ | 0.14 | 25.6 | % | |||||||
Weighted average common shares outstanding | 8,811,945 | 8,794,445 | 8,750,729 | ||||||||||||||
Return on average assets | 0.82 | % | 1.24 | % | 0.81 | % | |||||||||||
Return on average common equity | 9.39 | % | 15.04 | % | 8.27 | % |
| ||||||||||||||||||||
UNAUDITED SUMMARY FINANCIAL STATEMENTS | ||||||||||||||||||||
(Dollars in thousands, except book value per share) | ||||||||||||||||||||
BALANCE SHEET | At Period End | |||||||||||||||||||
2021 | 2021 | Qtr over Qtr | 2020 | Year over Year | ||||||||||||||||
ASSETS | % Change | % Change | ||||||||||||||||||
Total cash and investments | $ | 217,429 | $ | 263,325 | -17.4 | % | $ | 145,528 | 49.4 | % | ||||||||||
Loans, net of unearned income | 518,702 | 519,043 | -0.1 | % | 477,873 | 8.5 | % | |||||||||||||
Loan loss reserve | (6,081 | ) | (5,931 | ) | 2.5 | % | (5,347 | ) | 13.7 | % | ||||||||||
Other assets | 19,669 | 19,476 | 1.0 | % | 18,292 | 7.5 | % | |||||||||||||
Total Assets | $ | 749,719 | $ | 795,913 | -5.8 | % | 636,346 | 17.8 | % | |||||||||||
LIABILITIES AND SHAREHOLDERS EQUITY | ||||||||||||||||||||
Non-interest bearing demand deposits | 255,813 | 263,697 | -3.0 | % | 229,108 | 11.7 | % | |||||||||||||
Interest bearing deposits | 398,632 | 434,238 | -8.2 | % | 301,502 | 32.2 | % | |||||||||||||
Total deposits | 654,445 | 697,935 | -6.2 | % | 530,610 | 23.3 | % | |||||||||||||
Total borrowings and other liabilities | 28,422 | 32,497 | -12.5 | % | 45,699 | -37.8 | % | |||||||||||||
Total Liabilities | $ | 682,867 | $ | 730,432 | -6.5 | % | $ | 576,309 | 18.5 | % | ||||||||||
Total equity | 66,852 | 65,481 | 2.1 | % | 60,037 | 11.4 | % | |||||||||||||
Total Liabilities and Total Equity | $ | 749,719 | $ | 795,913 | -5.8 | % | $ | 636,346 | 17.8 | % | ||||||||||
Book value per common share | $ | 7.54 | $ | 7.44 | 1.3 | % | $ | 6.86 | 9.9 | % |
SELECTED FINANCIAL DATA | |||||||||
(In thousands of dollars, except for ratios and per share amounts) | |||||||||
Unaudited | |||||||||
At or for the Three Months Ended | |||||||||
2021 | 2021 | 2020 | |||||||
ASSET QUALITY RATIOS | |||||||||
Net (charge-offs) recoveries | - | 1 | (18 | ) | |||||
Net (charge-offs) recoveries to average loans | 0.0000 | % | 0.0002 | % | -0.0038 | % | |||
Non-performing loans as a % of loans | 0.01 | % | 0.01 | % | 0.04 | % | |||
Non-performing assets as a % of assets | 0.00 | % | 0.00 | % | 0.03 | % | |||
Allowance for loan losses as a % of total loans | 1.17 | % | 1.14 | % | 1.12 | % | |||
Allowance for loan losses as a % of total unguaranteed loans | 1.37 | % | 1.42 | % | 1.41 | % | |||
Allowance for loan losses as a % of non-performing loans | 19508 | % | 16627 | % | 2665 | % | |||
AVERAGE BALANCE SHEET DATA | |||||||||
Average assets | 758,371 | 780,587 | 606,842 | ||||||
Average total loans | 520,637 | 529,734 | 474,400 | ||||||
Average total deposits | 660,673 | 682,091 | 501,393 | ||||||
Average shareholders' equity | 66,315 | 64,187 | 59,555 | ||||||
FINANCIAL RATIOSSTATISTICS | |||||||||
Return on average assets | 0.82 | % | 1.24 | % | 0.81 | % | |||
Return on average equity | 9.39 | % | 15.04 | % | 8.27 | % | |||
Net interest margin | 3.39 | % | 2.96 | % | 3.37 | % | |||
Efficiency ratio | 63.03 | % | 51.07 | % | 61.65 | % |
Contacts: | ||
510-433-5404 | ||
wkeller@BankCBB.com |
Source:
2021 GlobeNewswire, Inc., source