The Company also announced its Board of Directors declared a quarterly cash dividend of
“Our earnings for the second quarter were highlighted by strong revenue generation, higher deposit growth and the continued success of our outreach to new and existing customers. Overall, these factors contributed to a return on average assets of 1.24% and a return on average equity of 15.04% for the quarter,” stated
“One of the highlights of the quarter was being named a recipient of the CDFI Rapid Response Program,” said Keller. “We were granted and fully deployed
“Our focus since the onset of the pandemic has been to support the businesses and their employees in our communities,” said Keller. “During the second and third quarters of 2020, we helped 395 customers receive
The Company’s PPP activity continued into 2021 when the CARES Act that was signed into law in late 2020 authorized additional COVID-19 stimulus relief through a second round of PPP funding. The program offers PPP loans for companies that did not receive PPP funds in 2020 and additional “second draw” loans for those businesses that were hit the hardest by the pandemic. “As a CDFI, our Bank was able to begin offering these loans before other institutions, and we conducted significant outreach and educational efforts in order to support the SBA’s goal of ensuring that all qualified applicants had access to this valuable economic recovery program. As of
The Company’s net interest margin was 2.93% in the second quarter of 2021, compared to 3.71% in the preceding quarter, and 3.38% in the second quarter a year ago. “Increased liquidity due to higher deposit balances and the resultant effect on the mix of our earning assets caused by higher Excess Reserves at the Fed continued to put pressure on our net interest margin during the quarter,” said Keller. Excess Reserves had a 0.41% negative effect on the net interest margin for the second quarter of 2021 compared to a 0.12% negative effect for the first quarter of 2021.
“We booked a
Second Quarter 2021 Financial Highlights (at or for the period ended
- Net income increased 104.5% to
$2.41 million in the second quarter of 2021, compared to$1.68 million in the prior quarter, and$1.18 million in the second quarter a year ago. Earnings per share was$0.27 in the second quarter of 2021, compared to$0.19 in the prior quarter, and$0.13 in the second quarter a year ago. - Pre-tax core earnings excluding gains on loan sales, PPP loan fees and loan loss provisions, was up
$1.33 million , or 61.1%, to$3.50 million in the second quarter compared to the second quarter a year ago. - Total assets increased
$183.9 million , or 30.1%, to$795.9 million atJune 30, 2021 , compared to$612.0 million a year earlier, and increased$33.8 million , or 4.4% compared to$672.1 million three months earlier. Average assets for the quarter totaled$780.6 million , an increase of$207.8 million , or 36.3%, from the second quarter a year ago and an increase of$95.4 million , or 13.9%, compared with the prior quarter. - Net interest income, before the provision for loan losses, increased 17.3% to
$5.44 million in the second quarter of 2021, compared to$4.64 million in the second quarter a year ago. The provision for loan losses was$250,000 in the second quarter of 2021, compared to$500,000 in the second quarter of 2020. - Non-interest income increased substantially to
$2.13 million during the second quarter of 2021, compared to$168,000 for the second quarter a year ago. Impacting non-interest income for the second quarter of 2021 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 57.6% to
$7.58 million in the second quarter of 2021, compared to$4.81 million in the second quarter of 2020. - Net interest margin for the second quarter was 2.93%, compared to 3.71% in the preceding quarter and 3.38% in the second quarter a year ago. The second quarter margin compression was driven by a
$36.3 million increase in deposit balances and$22.8 million in PPP loan forgiveness. In the second quarter, the net interest margin exclusive of all PPP-related income and balances would have been 3.26%. The average interest yield on non-PPP loans in the second quarter was 4.87%, compared to 5.02% in the prior quarter. The average cost of funds in the second quarter was 0.26%, a decline of six basis points compared to the prior quarter and a decline of 40 basis points compared to the prior year. - Net loans increased
$44.8 million , or 9.5%, to$519.0 million atJune 30, 2021 , compared to$474.2 million a year ago, and decreased 4.2% compared to$541.6 million , largely due to$23.3 million in PPP loan forgiveness during the current quarter. AtJune 30, 2021 , net non-PPP loans totaled$432.9 million , a 0.2% increase compared to$432.2 million atMarch 31, 2021 , and a 9.4% increase compared to$395.7 million atJune 30, 2020 . In addition, atJune 30, 2021 the unused portion of credit commitments totaled$112.6 million compared to$95.4 million in the prior quarter and$42.4 million a year ago. - Total deposits increased
$191.0 million , or 37.7%, to$697.9 million atJune 30, 2021 , compared to$506.9 million a year ago and increased$36.3 million , or 5.5% compared to$661.6 million three months earlier. Growth in new customer accounts, as well as a second round of PPP loan funds deposited into customer accounts, contributed to strong quarterly deposit growth year-over-year. Noninterest bearing demand deposit accounts increased 28.3% compared to a year ago and represented 37.8% of total deposits. Savings, NOW and money market accounts increased 83.8% compared to a year ago and represented 49.9% of total deposits. CDs decreased 23.2% when compared to a year ago and comprised 12.3% of the total deposit portfolio, atJune 30, 2021 . - Asset quality remained exemplary with
$36,000 of nonperforming loans atJune 30, 2021 , representing 0.01% of total loans. This compares to nonperforming loans at 0.02% of total loans atMarch 31, 2021 , and atJune 30, 2020 . - The allowance for loan losses totaled
$5.93 million , or 1.14% of total loans atJune 30, 2021 , compared to$5.12 million , or 1.08% of total loans atJune 30, 2020 . The allowance, as a percentage of non-guaranteed loans, was 1.42% atJune 30, 2021 , compared to 1.36% a year ago. The allowance for loan losses reflects management’s assessment of the current economic environment. - Total equity increased 11.5% to
$65.5 million as ofJune 30, 2021 , compared to a year ago. The Bank’s capital levels remained well aboveFDIC “Well Capitalized” standards as ofJune 30, 2021 , with a Tier 1 Common Equity capital ratio of 13.26%; Total risk-based capital ratio of 14.49%; and Tier 1 leverage ratio of 8.35%. - Book value per common share totaled
$7.44 as ofJune 30, 2021 , an increase of 10.8% from a year ago. - Declared a quarterly cash dividend of
$0.04 per share. The dividend is payableSeptember 3, 2021 to shareholders of record onAugust 24, 2021 .
In December, 2020,
For additional information on the CDFI Rapid Response Program please visit
https://www.cdfifund.gov/programs-training/programs/rrp
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 | $ | 5,898 | $ | 6,448 | -8.5 | % | $ | 5,480 | 7.6 | % | ||||||||||
Interest expense | 456 | 493 | -7.5 | % | 841 | -45.8 | % | |||||||||||||
Net interest income before provision | 5,442 | 5,955 | -8.6 | % | 4,639 | 17.3 | % | |||||||||||||
Provision for Loan Losses | 250 | 250 | 0.0 | % | 500 | -50.0 | % | |||||||||||||
Net interest income after provision | 5,192 | 5,705 | -9.0 | % | 4,139 | 25.4 | % | |||||||||||||
Non-interest income | 2,134 | 334 | 538.9 | % | 168 | 1170.2 | % | |||||||||||||
Non-interest expense | 3,869 | 3,665 | 5.6 | % | 2,609 | 48.3 | % | |||||||||||||
Income before provision for income taxes | 3,457 | 2,374 | 45.6 | % | 1,698 | 103.6 | % | |||||||||||||
Provision for income taxes | 1,050 | 691 | 52.0 | % | 521 | 101.5 | % | |||||||||||||
Net income | $ | 2,407 | $ | 1,683 | 43.0 | % | $ | 1,177 | 104.5 | % | ||||||||||
Basic earnings per common share | $ | 0.27 | $ | 0.19 | 42.9 | % | $ | 0.13 | 103.2 | % | ||||||||||
Weighted average common shares outstanding | 8,794,445 | 8,786,830 | 8,739,338 | |||||||||||||||||
Return on average assets | 1.24 | % | 1.00 | % | 0.82 | % | ||||||||||||||
Return on average common equity | 15.04 | % | 10.89 | % | 8.05 | % | ||||||||||||||
| ||||||||||||||||||||
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 | $ | 249,325 | $ | 197,828 | 26.0 | % | $ | 119,338 | 108.9 | % | ||||||||||
Loans, net of unearned income | 519,043 | 541,589 | -4.2 | % | 474,205 | 9.5 | % | |||||||||||||
Loan loss reserve | (5,931 | ) | (5,679 | ) | 4.4 | % | (5,115 | ) | 16.0 | % | ||||||||||
Other assets | 33,476 | 28,336 | 18.1 | % | 23,573 | 42.0 | % | |||||||||||||
Total Assets | $ | 795,913 | $ | 762,074 | 4.4 | % | $ | 612,001 | 30.1 | % | ||||||||||
LIABILITIES AND SHAREHOLDERS EQUITY | ||||||||||||||||||||
Non-interest bearing demand deposits | 263,697 | 255,310 | 3.3 | % | 205,580 | 28.3 | % | |||||||||||||
Interest bearing deposits | 434,238 | 406,326 | 6.9 | % | 301,324 | 44.1 | % | |||||||||||||
Total deposits | 697,935 | 661,636 | 5.5 | % | 506,904 | 37.7 | % | |||||||||||||
Total borrowings and other liabilities | 32,497 | 37,216 | -12.7 | % | 46,391 | -29.9 | % | |||||||||||||
Total Liabilities | $ | 730,432 | $ | 698,852 | 4.5 | % | $ | 553,295 | 32.0 | % | ||||||||||
Total equity | 65,481 | 63,222 | 3.6 | % | 58,706 | 11.5 | % | |||||||||||||
Total Liabilities and Total Equity | $ | 795,913 | $ | 762,074 | 4.4 | % | $ | 612,001 | 30.1 | % | ||||||||||
Book value per common share | $ | 7.44 | $ | 7.20 | 3.4 | % | $ | 6.71 | 10.8 | % | ||||||||||
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 | (268 | ) | 2 | |||||
Net (charge-offs) recoveries to average loans | 0.0002 | % | -0.0513 | % | 0.0004 | % | |||
Non-performing loans as a % of loans | 0.01 | % | 0.02 | % | 0.02 | % | |||
Non-performing assets as a % of assets | 0.00 | % | 0.01 | % | 0.02 | % | |||
Allowance for loan losses as a % of total loans | 1.14 | % | 1.05 | % | 1.08 | % | |||
Allowance for loan losses as a % of total unguaranteed loans | 1.42 | % | 1.36 | % | 1.36 | % | |||
Allowance for loan losses as a % of non-performing loans | 16627 | % | 5069 | % | 4427 | % | |||
AVERAGE BALANCE SHEET DATA | |||||||||
Average assets | 780,587 | 685,225 | 572,778 | ||||||
Average total loans | 529,734 | 522,595 | 452,619 | ||||||
Average total deposits | 682,091 | 581,577 | 471,924 | ||||||
Average shareholders' equity | 64,187 | 62,704 | 58,644 | ||||||
FINANCIAL RATIOSSTATISTICS | |||||||||
Return on average assets | 1.24 | % | 1.00 | % | 0.82 | % | |||
Return on average equity | 15.04 | % | 10.89 | % | 8.05 | % | |||
Net interest margin | 2.93 | % | 3.71 | % | 3.38 | % | |||
Efficiency ratio | 51.07 | % | 58.28 | % | 54.28 | % | |||
Contacts:
510-433-5404
wkeller@BankCBB.com
Source:
2021 GlobeNewswire, Inc., source