2023 Fourth Quarter Financial and Operating Highlights (on a year-over-year basis unless noted):
- 83 consecutive quarters of profitability
- Net income was
$5.5 million , or$0.41 per basic and diluted share - Asset quality remains strong as nonperforming loans were 0.87% of total loans
- Net charge-offs to average loans were 0.03%
- Allowance for credit losses was 111.95% of nonperforming loans
- Tier 1 leverage ratio was 8.20%
- Opened first bank office in
Michigan and new regional headquarters inFort Wayne, Indiana - Added
Ian D. Boyce to the Board of Directors of both the Company and the Bank - Realigned organizational structure to support future growth and drive profitability
- Dividend raised 4.8% year-over-year, representing the 29th consecutive annual increase in the Company’s regular dividend payment since 1994
2023 Full-Year Financial Highlights Include (on a year-over-year basis unless noted):
- Total loans were a record of
$2.58 billion and increased 9.5% from$2.36 billion atDecember 31, 2022 - Total assets increased 8.9% to a record
$3.28 billion - Deposits increased to 5.6% to a record
$2.61 billion - Stockholders’ equity increased 6.2% to a record
$316.5 million - Net interest income after provision for credit losses decreased 3.1% to
$79.7 million - Net income was
$22.8 million , or$1.67 per basic and diluted share - Return on average tangible equity was 12.17%
- Opened a total of four new bank offices including new offices in
Ohio ,Indiana andMichigan - Successfully launched new forward-looking logo and brand-name
- Provided a record
$802,000 of charitable donations to support organizations throughoutOhio andIndiana
Income Statement
Net income for the 2023 fourth quarter ended
“Throughout 2023, the rapid rise in the Federal Funds Rate impacted our cost of funds and increased the competition for deposits. As a result, our cost of interest-bearing liabilities increased to 2.53% for the year ended
Deposits
At
Loan Portfolio and Asset Quality
Total loans, net at
F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans were
F&M maintains a well-balanced, diverse and high performing CRE portfolio. CRE loans represented 51.8% of the Company’s total loan portfolio at
F&M’s CRE portfolio included the following categories at
CRE Category | Dollar Balance | Percent of CRE Portfolio(*) | Percent of Total Loan Portfolio(*) | ||||
Industrial | $ | 253,683 | 19.0% | 9.8% | |||
Multi-family | $ | 232,776 | 17.4% | 9.0% | |||
Retail | $ | 218,580 | 16.3% | 8.5% | |||
Office | $ | 137,573 | 10.3% | 5.3% | |||
Hotels | $ | 127,646 | 9.6% | 4.9% | |||
Gas Stations | $ | 63,151 | 4.7% | 2.4% | |||
Food Service | $ | 50,990 | 3.8% | 2.0% | |||
Senior Living | $ | 32,290 | 2.4% | 1.3% | |||
Auto Dealers | $ | 29,714 | 2.2% | 1.2% | |||
Development | $ | 28,045 | 2.1% | 1.1% | |||
Other | $ | 163,318 | 12.2% | 6.3% | |||
Total CRE | $ | 1,337,766 | 100.0% | 51.8% | |||
* Numbers have been rounded | |||||||
At
Stockholders’ Equity and Dividends
Total stockholders’ equity increased 6.2% to
Based on a regulatory basis, tangible stockholders’ equity increased to
For the twelve months ended
About
Safe Harbor Statement
Non-GAAP Financial Measures
This press release includes disclosure of financial measures not prepared in accordance with generally accepted accounting principles in
Company Contact: | Investor and Media Contact: |
President and Chief Executive Officer Farmers & (419) 446-2501 leller@fm.bank | Managing Director (216) 464-6400 andrew@smberger.com |
CONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME | ||||||||||||||||||||||||||
(Unaudited) (in thousands of dollars, except per share data) | ||||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||||||||||
Interest Income | ||||||||||||||||||||||||||
Loans, including fees | $ | 34,493 | $ | 33,783 | $ | 31,365 | $ | 29,703 | $ | 27,302 | $ | 129,344 | $ | 94,264 | ||||||||||||
Debt securities: | ||||||||||||||||||||||||||
987 | 1,005 | 1,030 | 1,068 | 1,118 | 4,090 | 4,225 | ||||||||||||||||||||
Municipalities | 397 | 392 | 401 | 408 | 420 | 1,598 | 1,415 | |||||||||||||||||||
Dividends | 365 | 246 | 148 | 123 | 126 | 882 | 318 | |||||||||||||||||||
Federal funds sold | 8 | 6 | 9 | 21 | 2 | 44 | 21 | |||||||||||||||||||
Other | 2,020 | 927 | 424 | 479 | 524 | 3,850 | 906 | |||||||||||||||||||
Total interest income | 38,270 | 36,359 | 33,377 | 31,802 | 29,492 | 139,808 | 101,149 | |||||||||||||||||||
Interest Expense | ||||||||||||||||||||||||||
Deposits | 15,015 | 13,323 | 10,434 | 8,151 | 4,978 | 46,923 | 9,883 | |||||||||||||||||||
Federal funds purchased and securities sold | ||||||||||||||||||||||||||
under agreements to repurchase | 293 | 349 | 427 | 405 | 463 | 1,474 | 1,197 | |||||||||||||||||||
Borrowed funds | 2,742 | 2,741 | 2,113 | 1,280 | 1,209 | 8,876 | 2,160 | |||||||||||||||||||
Subordinated notes | 285 | 284 | 285 | 284 | 285 | 1,138 | 1,122 | |||||||||||||||||||
Total interest expense | 18,335 | 16,697 | 13,259 | 10,120 | 6,935 | 58,411 | 14,362 | |||||||||||||||||||
Net Interest Income - Before Provision for Credit Losses* | 19,935 | 19,662 | 20,118 | 21,682 | 22,557 | 81,397 | 86,787 | |||||||||||||||||||
Provision for Credit Losses - Loans* | 278 | 460 | 143 | 817 | 755 | 1,698 | 4,600 | |||||||||||||||||||
Provision for Credit Losses - Off Balance Sheet Credit Exposures* | 189 | (76 | ) | (129 | ) | 62 | - | 46 | - | |||||||||||||||||
Net Interest Income After Provision for Credit Losses* | 19,468 | 19,278 | 20,104 | 20,803 | 21,802 | 79,653 | 82,187 | |||||||||||||||||||
Noninterest Income | ||||||||||||||||||||||||||
Customer service fees | 2,576 | 2,208 | 2,361 | 2,447 | 2,862 | 9,592 | 9,958 | |||||||||||||||||||
Other service charges and fees | 1,121 | 1,162 | 1,803 | 2,554 | 1,115 | 6,640 | 4,226 | |||||||||||||||||||
Net gain on sale of loans | 230 | 294 | 108 | 67 | 165 | 699 | 1,353 | |||||||||||||||||||
Net loss on sale of available-for-sale securities | - | - | - | (891 | ) | - | (891 | ) | - | |||||||||||||||||
Total noninterest income | 3,927 | 3,664 | 4,272 | 4,177 | 4,142 | 16,040 | 15,537 | |||||||||||||||||||
Noninterest Expense | ||||||||||||||||||||||||||
Salaries and wages | 6,981 | 6,777 | 6,500 | 6,657 | 6,353 | 26,915 | 22,700 | |||||||||||||||||||
Employee benefits | 1,218 | 2,066 | 2,071 | 2,165 | 1,911 | 7,520 | 6,903 | |||||||||||||||||||
Net occupancy expense | 1,187 | 950 | 840 | 856 | 753 | 3,833 | 2,566 | |||||||||||||||||||
Furniture and equipment | 1,370 | 1,189 | 1,211 | 1,252 | 1,096 | 5,022 | 4,207 | |||||||||||||||||||
Data processing | 785 | 840 | 796 | 726 | 1,917 | 3,147 | 3,956 | |||||||||||||||||||
Franchise taxes | 308 | 434 | 379 | 366 | (45 | ) | 1,487 | 1,384 | ||||||||||||||||||
ATM expense | 665 | 640 | 683 | 623 | 561 | 2,611 | 2,217 | |||||||||||||||||||
Advertising | 397 | 865 | 830 | 514 | 531 | 2,606 | 1,646 | |||||||||||||||||||
Net (gain) loss on sale of other assets owned | 86 | 49 | - | - | 12 | 135 | (259 | ) | ||||||||||||||||||
594 | 586 | 496 | 306 | 250 | 1,982 | 905 | ||||||||||||||||||||
Servicing rights amortization - net | 182 | 106 | 164 | 159 | 110 | 611 | 145 | |||||||||||||||||||
Consulting fees | 192 | 179 | 231 | 230 | 637 | 832 | 1,302 | |||||||||||||||||||
Other general and administrative | 2,555 | 2,363 | 2,643 | 3,077 | 2,964 | 10,638 | 9,577 | |||||||||||||||||||
Total noninterest expense | 16,520 | 17,044 | 16,844 | 16,931 | 17,050 | 67,339 | 57,249 | |||||||||||||||||||
Income Before Income Taxes | 6,875 | 5,898 | 7,532 | 8,049 | 8,894 | 28,354 | 40,475 | |||||||||||||||||||
Income Taxes | 1,332 | 1,121 | 1,531 | 1,583 | 1,706 | 5,567 | 7,960 | |||||||||||||||||||
Net Income | 5,543 | 4,777 | 6,001 | 6,466 | 7,188 | 22,787 | 32,515 | |||||||||||||||||||
Other Comprehensive Income (Loss) (Net of Tax): | ||||||||||||||||||||||||||
Net unrealized gain (loss) on available-for-sale securities | 13,261 | (4,514 | ) | (5,996 | ) | 8,030 | (628 | ) | 10,781 | (44,366 | ) | |||||||||||||||
Reclassification adjustment for realized loss on sale of available-for-sale securities | - | - | - | 891 | - | 891 | - | |||||||||||||||||||
Net unrealized gain (loss) on available-for-sale securities | 13,261 | (4,514 | ) | (5,996 | ) | 8,921 | (628 | ) | 11,672 | (44,366 | ) | |||||||||||||||
Tax expense (benefit) | 2,784 | (947 | ) | (1,260 | ) | 1,874 | (132 | ) | 2,451 | (9,317 | ) | |||||||||||||||
Other comprehensive income (loss) | 10,477 | (3,567 | ) | (4,736 | ) | 7,047 | (496 | ) | 9,221 | (35,049 | ) | |||||||||||||||
Comprehensive Income (Loss) | $ | 16,020 | $ | 1,210 | $ | 1,265 | $ | 13,513 | $ | 6,692 | $ | 32,008 | $ | (2,534 | ) | |||||||||||
Basic Earnings Per Share | $ | 0.41 | $ | 0.35 | $ | 0.44 | $ | 0.47 | $ | 0.53 | $ | 1.67 | $ | 2.46 | ||||||||||||
Diluted Earnings Per Share | $ | 0.41 | $ | 0.35 | $ | 0.44 | $ | 0.47 | $ | 0.53 | $ | 1.67 | $ | 2.46 | ||||||||||||
Dividends Declared | $ | 0.2200 | $ | 0.2100 | $ | 0.2100 | $ | 0.2100 | $ | 0.2100 | $ | 0.8500 | $ | 0.8125 | ||||||||||||
*ASU 2016-13 adopted during the first quarter of 2023; therefore, prior period's provision amount reflects the incurred loss method. | ||||||||||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||
(Unaudited) (in thousands of dollars, except share data) | ||||||||||||||||||||
December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | ||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 140,917 | $ | 151,711 | $ | 69,760 | $ | 62,780 | $ | 83,085 | ||||||||||
Federal funds sold | 1,284 | 1,471 | 1,433 | 1,545 | 1,324 | |||||||||||||||
Total cash and cash equivalents | 142,201 | 153,182 | 71,193 | 64,325 | 84,409 | |||||||||||||||
Interest-bearing time deposits | 2,740 | 2,989 | 3,485 | 4,435 | 4,442 | |||||||||||||||
Securities - available-for-sale | 358,478 | 348,255 | 363,225 | 372,975 | 390,789 | |||||||||||||||
Other securities, at cost | 17,138 | 16,995 | 17,535 | 11,543 | 9,799 | |||||||||||||||
Loans held for sale | 1,576 | 1,039 | 1,459 | 951 | 827 | |||||||||||||||
Loans, net | 2,556,167 | 2,504,329 | 2,490,883 | 2,422,018 | 2,336,074 | |||||||||||||||
Premises and equipment | 35,790 | 31,723 | 30,398 | 28,679 | 28,381 | |||||||||||||||
Construction in progress | 8 | 3,044 | 2,290 | 1,565 | 278 | |||||||||||||||
86,358 | 86,358 | 86,358 | 86,358 | 86,358 | ||||||||||||||||
Loan servicing rights | 5,648 | 5,687 | 5,635 | 4,985 | 3,549 | |||||||||||||||
Bank owned life insurance | 33,907 | 33,691 | 33,470 | 33,269 | 33,073 | |||||||||||||||
Other assets | 43,218 | 47,388 | 41,512 | 38,972 | 37,372 | |||||||||||||||
Total Assets | $ | 3,283,229 | $ | 3,234,680 | $ | 3,147,443 | $ | 3,070,075 | $ | 3,015,351 | ||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Noninterest-bearing | $ | 528,465 | $ | 505,358 | $ | 488,678 | $ | 520,145 | $ | 532,794 | ||||||||||
Interest-bearing | ||||||||||||||||||||
NOW accounts | 816,790 | 778,133 | 770,113 | 800,230 | 750,887 | |||||||||||||||
Savings | 599,191 | 591,344 | 581,192 | 590,854 | 627,203 | |||||||||||||||
Time | 663,017 | 700,445 | 628,757 | 601,939 | 557,980 | |||||||||||||||
Total deposits | 2,607,463 | 2,575,280 | 2,468,740 | 2,513,168 | 2,468,864 | |||||||||||||||
Federal funds purchased and securities | ||||||||||||||||||||
sold under agreements to repurchase | 28,218 | 30,527 | 51,567 | 30,496 | 54,206 | |||||||||||||||
265,750 | 266,286 | 266,818 | 164,327 | 127,485 | ||||||||||||||||
Other borrowings | - | - | - | - | 10,000 | |||||||||||||||
Subordinated notes, net of unamortized issuance costs | 34,702 | 34,673 | 34,644 | 34,615 | 34,586 | |||||||||||||||
Dividend payable | 2,974 | 2,838 | 2,834 | 2,831 | 2,832 | |||||||||||||||
Accrued expenses and other liabilities | 27,579 | 21,892 | 18,177 | 18,881 | 19,238 | |||||||||||||||
Total liabilities | 2,966,686 | 2,931,496 | 2,842,780 | 2,764,318 | 2,717,211 | |||||||||||||||
Commitments and Contingencies | ||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||
Common stock - No par value 20,000,000 shares authorized; issued and | ||||||||||||||||||||
outstanding 14,564,425 shares | 135,515 | 135,171 | 135,647 | 135,241 | 135,497 | |||||||||||||||
(11,040 | ) | (11,008 | ) | (11,298 | ) | (11,310 | ) | (11,573 | ) | |||||||||||
Retained earnings | 221,080 | 218,510 | 216,236 | 213,012 | 212,449 | |||||||||||||||
Accumulated other comprehensive loss | (29,012 | ) | (39,489 | ) | (35,922 | ) | (31,186 | ) | (38,233 | ) | ||||||||||
Total stockholders' equity | 316,543 | 303,184 | 304,663 | 305,757 | 298,140 | |||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 3,283,229 | $ | 3,234,680 | $ | 3,147,443 | $ | 3,070,075 | $ | 3,015,351 | ||||||||||
SELECT FINANCIAL DATA | ||||||||||||||||||||||||||
For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||||||||
Selected financial data | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||||||||||||
Return on average assets | 0.67 | % | 0.59 | % | 0.77 | % | 0.84 | % | 0.96 | % | 0.71 | % | 1.17 | % | ||||||||||||
Return on average equity | 7.27 | % | 6.26 | % | 7.84 | % | 8.59 | % | 10.00 | % | 7.46 | % | 11.30 | % | ||||||||||||
Yield on earning assets | 4.93 | % | 4.79 | % | 4.53 | % | 4.41 | % | 4.18 | % | 4.67 | % | 3.87 | % | ||||||||||||
Cost of interest bearing liabilities | 3.02 | % | 2.82 | % | 2.35 | % | 1.85 | % | 1.32 | % | 2.53 | % | 0.74 | % | ||||||||||||
Net interest spread | 1.91 | % | 1.97 | % | 2.18 | % | 2.56 | % | 2.86 | % | 2.14 | % | 3.13 | % | ||||||||||||
Net interest margin | 2.57 | % | 2.59 | % | 2.73 | % | 3.01 | % | 3.20 | % | 2.72 | % | 3.32 | % | ||||||||||||
Efficiency | 69.23 | % | 73.07 | % | 69.06 | % | 63.53 | % | 50.46 | % | 68.48 | % | 55.95 | % | ||||||||||||
Dividend payout ratio | 54.23 | % | 60.07 | % | 47.22 | % | 43.79 | % | 39.39 | % | 50.65 | % | 33.06 | % | ||||||||||||
Tangible book value per share (1) | $ | 18.60 | $ | 18.36 | $ | 18.21 | $ | 17.92 | $ | 17.69 | ||||||||||||||||
Tier 1 leverage ratio | 8.20 | % | 8.02 | % | 9.85 | % | 8.36 | % | 8.39 | % | ||||||||||||||||
Average shares outstanding | 13,665,773 | 13,650,823 | 13,632,440 | 13,615,655 | 13,606,876 | 13,641,336 | 13,206,713 | |||||||||||||||||||
Loans | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | |||||||||||||||||||||
(Dollar amounts in thousands) | ||||||||||||||||||||||||||
Commercial real estate | $ | 1,337,766 | $ | 1,304,118 | $ | 1,280,902 | $ | 1,225,315 | $ | 1,152,603 | ||||||||||||||||
Agricultural real estate | 223,791 | 225,672 | 230,837 | 227,897 | 220,819 | |||||||||||||||||||||
Consumer real estate | 521,895 | 512,973 | 506,866 | 502,974 | 494,423 | |||||||||||||||||||||
Commercial and industrial | 254,935 | 250,891 | 253,444 | 241,598 | 242,360 | |||||||||||||||||||||
Agricultural | 132,560 | 123,735 | 128,344 | 131,467 | 128,733 | |||||||||||||||||||||
Consumer | 79,591 | 83,024 | 88,312 | 89,588 | 89,147 | |||||||||||||||||||||
Other | 30,136 | 31,083 | 28,996 | 29,316 | 29,818 | |||||||||||||||||||||
Less: Net deferred loan fees, costs and other (2) | 517 | (1,890 | ) | (1,908 | ) | (1,503 | ) | (1,516 | ) | |||||||||||||||||
Total loans,net | $ | 2,581,191 | $ | 2,529,606 | $ | 2,515,793 | $ | 2,446,652 | $ | 2,356,387 | ||||||||||||||||
Asset quality data | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | |||||||||||||||||||||
(Dollar amounts in thousands) | ||||||||||||||||||||||||||
Nonaccrual loans | $ | 22,353 | $ | 22,447 | $ | 6,295 | $ | 7,717 | $ | 4,689 | ||||||||||||||||
90 day past due and accruing | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Nonperforming loans | $ | 22,353 | $ | 22,447 | $ | 6,295 | $ | 7,717 | $ | 4,689 | ||||||||||||||||
Other real estate owned | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Nonperforming assets | $ | 22,353 | $ | 22,447 | $ | 6,295 | $ | 7,717 | $ | 4,689 | ||||||||||||||||
Allowance for credit losses (3) | $ | 25,024 | $ | 25,277 | $ | 24,910 | $ | 24,507 | $ | 20,313 | ||||||||||||||||
Accretable yield adjustment | 4,018 | 4,565 | 5,209 | 5,754 | 6,427 | |||||||||||||||||||||
Adjusted credit losses with accretable yield included (3) | $ | 29,042 | $ | 29,842 | $ | 30,119 | $ | 30,261 | $ | 26,740 | ||||||||||||||||
Allowance for credit losses/total loans (3) | 0.97 | % | 1.00 | % | 0.99 | % | 1.00 | % | 0.86 | % | ||||||||||||||||
Adjusted credit losses with accretable yield/total loans (3) | 1.13 | % | 1.18 | % | 1.20 | % | 1.24 | % | 1.13 | % | ||||||||||||||||
Net charge-offs: | ||||||||||||||||||||||||||
Quarter-to-date | $ | 893 | $ | 93 | $ | (133 | ) | $ | 60 | $ | 431 | |||||||||||||||
Year-to-date | $ | 990 | $ | 97 | $ | (73 | ) | $ | 60 | $ | 529 | |||||||||||||||
Net charge-offs to average loans | ||||||||||||||||||||||||||
Quarter-to-date | 0.03 | % | 0.00 | % | -0.01 | % | 0.00 | % | 0.02 | % | ||||||||||||||||
Year-to-date | 0.04 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.03 | % | ||||||||||||||||
Nonperforming loans/total loans | 0.87 | % | 0.89 | % | 0.25 | % | 0.32 | % | 0.20 | % | ||||||||||||||||
Allowance for credit losses/nonperforming loans (3) | 111.95 | % | 112.61 | % | 395.71 | % | 319.22 | % | 273.67 | % | ||||||||||||||||
NPA coverage ratio | 129.92 | % | 132.94 | % | 478.46 | % | 392.13 | % | 570.27 | % | ||||||||||||||||
(1) Tangible Equity = Stockholder Equity less goodwill, other intangibles (core deposit intangible, mortgage servicing rights and unrealized gain/loss on securities) plus CECL adjustment | ||||||||||||||||||||||||||
(2) Includes carrying value adjustments of | ||||||||||||||||||||||||||
(3) ASU 2016-13 adopted during the first quarter of 2023; therefore, prior period's provision amount reflects the incurred loss method. | ||||||||||||||||||||||||||
AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES | ||||||||||||||||||
(in thousands of dollars, except percentages) | ||||||||||||||||||
For the Three Months Ended | For the Three Months Ended | |||||||||||||||||
Interest Earning Assets: | Average Balance | Interest/Dividends | Annualized Yield/Rate | Average Balance | Interest/Dividends | Annualized Yield/Rate | ||||||||||||
Loans | $ | 2,553,023 | $ | 34,493 | 5.41 | % | $ | 2,301,204 | $ | 27,302 | 4.75 | % | ||||||
Taxable investment securities | 386,931 | 1,660 | 1.72 | % | 422,247 | 1,556 | 1.47 | % | ||||||||||
Tax-exempt investment securities | 24,145 | 89 | 1.87 | % | 28,522 | 108 | 1.92 | % | ||||||||||
Fed funds sold & other | 142,642 | 2,028 | 5.69 | % | 74,876 | 526 | 2.81 | % | ||||||||||
Total Interest Earning Assets | 3,106,741 | $ | 38,270 | 4.93 | % | 2,826,849 | $ | 29,492 | 4.18 | % | ||||||||
Nonearning Assets | 189,202 | 173,048 | ||||||||||||||||
Total Assets | $ | 3,295,943 | $ | 2,999,897 | ||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||
Savings deposits | $ | 1,392,304 | $ | 8,570 | 2.46 | % | $ | 1,394,663 | $ | 3,427 | 0.98 | % | ||||||
Other time deposits | 701,347 | 6,445 | 3.68 | % | 485,461 | 1,551 | 1.28 | % | ||||||||||
Other borrowed money | 265,948 | 2,742 | 4.12 | % | 135,013 | 1,209 | 3.58 | % | ||||||||||
Fed funds purchased & securities | ||||||||||||||||||
sold under agreement to repurch. | 28,739 | 293 | 4.08 | % | 53,506 | 463 | 3.46 | % | ||||||||||
Subordinated notes | 34,683 | 285 | 3.29 | % | 34,567 | 285 | 3.30 | % | ||||||||||
Total Interest Bearing Liabilities | $ | 2,423,021 | $ | 18,335 | 3.02 | % | $ | 2,103,210 | $ | 6,935 | 1.32 | % | ||||||
Noninterest Bearing Liabilities | 567,813 | 609,253 | ||||||||||||||||
Stockholders' Equity | $ | 305,109 | $ | 287,434 | ||||||||||||||
Net Interest Income and Interest Rate Spread | $ | 19,935 | 1.91 | % | $ | 22,557 | 2.86 | % | ||||||||||
Net Interest Margin | 2.57 | % | 3.20 | % | ||||||||||||||
Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts | ||||||||||||||||||
For the Twelve Months Ended | For the Twelve Months Ended | |||||||||||||||||
Interest Earning Assets: | Average Balance | Interest/Dividends | Annualized Yield/Rate | Average Balance | Interest/Dividends | Annualized Yield/Rate | ||||||||||||
Loans | $ | 2,491,502 | $ | 129,344 | 5.19 | % | $ | 2,073,737 | $ | 94,264 | 4.55 | % | ||||||
Taxable investment securities | 394,424 | 6,204 | 1.57 | % | 424,229 | 5,621 | 1.32 | % | ||||||||||
Tax-exempt investment securities | 24,686 | 366 | 1.88 | % | 23,472 | 337 | 1.82 | % | ||||||||||
Fed funds sold & other | 85,018 | 3,894 | 4.58 | % | 95,301 | 927 | 0.97 | % | ||||||||||
Total Interest Earning Assets | 2,995,630 | $ | 139,808 | 4.67 | % | 2,616,739 | $ | 101,149 | 3.87 | % | ||||||||
Nonearning Assets | 197,726 | 158,361 | ||||||||||||||||
Total Assets | $ | 3,193,356 | $ | 2,775,100 | ||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||
Savings deposits | $ | 1,376,318 | $ | 27,424 | 1.99 | % | $ | 1,335,271 | $ | 6,378 | 0.48 | % | ||||||
Other time deposits | 640,390 | 19,499 | 3.04 | % | 451,013 | 3,505 | 0.78 | % | ||||||||||
Other borrowed money | 220,175 | 8,876 | 4.03 | % | 74,379 | 2,160 | 2.90 | % | ||||||||||
Fed funds purchased & securities | ||||||||||||||||||
sold under agreement to repurch. | 35,421 | 1,474 | 4.16 | % | 45,314 | 1,197 | 2.64 | % | ||||||||||
Subordinated notes | 34,640 | 1,138 | 3.29 | % | 34,524 | 1,122 | 3.25 | % | ||||||||||
Total Interest Bearing Liabilities | $ | 2,306,944 | $ | 58,411 | 2.53 | % | $ | 1,940,501 | $ | 14,362 | 0.74 | % | ||||||
Noninterest Bearing Liabilities | 580,931 | 546,731 | ||||||||||||||||
Stockholders' Equity | $ | 305,481 | $ | 287,868 | ||||||||||||||
Net Interest Income and Interest Rate Spread | $ | 81,397 | 2.14 | % | $ | 86,787 | 3.13 | % | ||||||||||
Net Interest Margin | 2.72 | % | 3.32 | % | ||||||||||||||
Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts | ||||||||||||||||||
AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES | |||||||||||||||||||||||||||||
(in thousands of dollars, except percentages) | |||||||||||||||||||||||||||||
For the Three Months Ended | For the Three Months Ended | ||||||||||||||||||||||||||||
As Reported | Excluding Acc/Amort | Difference | As Reported | Excluding Acc/Amort | Difference | ||||||||||||||||||||||||
$ | Yield | $ | Yield | $ | Yield | $ | Yield | $ | Yield | $ | Yield | ||||||||||||||||||
Interest Earning Assets: | |||||||||||||||||||||||||||||
Loans | $ | 34,493 | 5.41 | % | $ | 33,769 | 5.29 | % | $ | 724 | 0.12 | % | 27,302 | 4.75 | % | 26,628 | 4.63 | % | $ | 674 | 0.12 | % | |||||||
Taxable investment securities | 1,660 | 1.72 | % | 1,660 | 1.72 | % | - | 0.00 | % | 1,556 | 1.47 | % | 1,556 | 1.47 | % | - | 0.00 | % | |||||||||||
Tax-exempt investment securities | 89 | 1.87 | % | 89 | 1.87 | % | - | 0.00 | % | 108 | 1.92 | % | 108 | 1.92 | % | - | 0.00 | % | |||||||||||
Fed funds sold & other | 2,028 | 5.69 | % | 2,028 | 5.69 | % | - | 0.00 | % | 526 | 2.81 | % | 526 | 2.81 | % | - | 0.00 | % | |||||||||||
Total Interest Earning Assets | 38,270 | 4.93 | % | 37,546 | 4.84 | % | 724 | 0.09 | % | 29,492 | 4.18 | % | 28,818 | 4.08 | % | 674 | 0.10 | % | |||||||||||
Interest Bearing Liabilities: | |||||||||||||||||||||||||||||
Savings deposits | $ | 8,570 | 2.46 | % | $ | 8,570 | 2.46 | % | $ | - | 0.00 | % | 3,427 | 0.98 | % | 3,427 | 0.98 | % | $ | - | 0.00 | % | |||||||
Other time deposits | 6,445 | 3.68 | % | 6,381 | 3.64 | % | 64 | 0.04 | % | 1,551 | 1.28 | % | 2,010 | 1.66 | % | (459 | ) | -0.38 | % | ||||||||||
Other borrowed money | 2,742 | 4.12 | % | 2,760 | 4.15 | % | (18 | ) | -0.03 | % | 1,209 | 3.58 | % | 1,227 | 3.64 | % | (18 | ) | -0.06 | % | |||||||||
Federal funds purchased and | |||||||||||||||||||||||||||||
securities sold under agreement to | |||||||||||||||||||||||||||||
repurchase | 293 | 4.08 | % | 293 | 4.08 | % | - | 0.00 | % | 463 | 3.46 | % | 463 | 3.46 | % | - | 0.00 | % | |||||||||||
Subordinated notes | 285 | 3.29 | % | 285 | 3.29 | % | - | 0.00 | % | 285 | 3.30 | % | 285 | 3.30 | % | - | 0.00 | % | |||||||||||
Total Interest Bearing Liabilities | 18,335 | 3.02 | % | 18,289 | 3.02 | % | 46 | 0.00 | % | 6,935 | 1.32 | % | 7,412 | 1.41 | % | (477 | ) | -0.09 | % | ||||||||||
Interest/Dividend income/yield | 38,270 | 4.93 | % | 37,546 | 4.84 | % | 724 | 0.09 | % | 29,492 | 4.18 | % | 28,818 | 4.08 | % | 674 | 0.10 | % | |||||||||||
Interest Expense / yield | 18,335 | 3.02 | % | 18,289 | 3.02 | % | 46 | 0.00 | % | 6,935 | 1.32 | % | 7,412 | 1.41 | % | (477 | ) | -0.09 | % | ||||||||||
Net Interest Spread | 19,935 | 1.91 | % | 19,257 | 1.82 | % | 678 | 0.09 | % | 22,557 | 2.86 | % | 21,406 | 2.67 | % | 1,151 | 0.19 | % | |||||||||||
Net Interest Margin | 2.57 | % | 2.48 | % | 0.09 | % | 3.20 | % | 3.03 | % | 0.17 | % | |||||||||||||||||
For the Twelve Months Ended | For the Twelve Months Ended | ||||||||||||||||||||||||||||
As Reported | Excluding Acc/Amort | Difference | As Reported | Excluding Acc/Amort | Difference | ||||||||||||||||||||||||
$ | Yield | $ | Yield | $ | Yield | $ | Yield | $ | Yield | $ | Yield | ||||||||||||||||||
Interest Earning Assets: | |||||||||||||||||||||||||||||
Loans | $ | 129,344 | 5.19 | % | $ | 126,133 | 5.06 | % | $ | 3,211 | 0.13 | % | 94,264 | 4.55 | % | 92,132 | 4.45 | % | $ | 2,132 | 0.10 | % | |||||||
Taxable investment securities | 6,204 | 1.57 | % | 6,204 | 1.57 | % | - | 0.00 | % | 5,621 | 1.32 | % | 5,621 | 1.32 | % | - | 0.00 | % | |||||||||||
Tax-exempt investment securities | 366 | 1.88 | % | 366 | 1.88 | % | - | 0.00 | % | 337 | 1.82 | % | 337 | 1.82 | % | - | 0.00 | % | |||||||||||
Fed funds sold & other | 3,894 | 4.58 | % | 3,894 | 4.58 | % | - | 0.00 | % | 927 | 0.97 | % | 927 | 0.97 | % | - | 0.00 | % | |||||||||||
Total Interest Earning Assets | 139,808 | 4.67 | % | 136,597 | 4.57 | % | 3,211 | 0.10 | % | 101,149 | 3.87 | % | 99,017 | 3.79 | % | 2,132 | 0.08 | % | |||||||||||
Interest Bearing Liabilities: | |||||||||||||||||||||||||||||
Savings deposits | $ | 27,424 | 1.99 | % | $ | 27,424 | 1.99 | % | $ | - | 0.00 | % | 6,378 | 0.48 | % | 6,378 | 0.48 | % | $ | - | 0.00 | % | |||||||
Other time deposits | 19,499 | 3.04 | % | 19,839 | 3.10 | % | (340 | ) | -0.06 | % | 3,505 | 0.78 | % | 5,822 | 1.29 | % | (2,317 | ) | -0.51 | % | |||||||||
Other borrowed money | 8,876 | 4.03 | % | 8,947 | 4.06 | % | (71 | ) | -0.03 | % | 2,160 | 2.90 | % | 2,241 | 3.01 | % | (81 | ) | -0.11 | % | |||||||||
Federal funds purchased and | |||||||||||||||||||||||||||||
securities sold under agreement to | |||||||||||||||||||||||||||||
repurchase | 1,474 | 4.16 | % | 1,474 | 4.16 | % | - | 0.00 | % | 1,197 | 2.64 | % | 1,197 | 2.64 | % | - | 0.00 | % | |||||||||||
Subordinated notes | 1,138 | 3.29 | % | 1,138 | 3.29 | % | - | 0.00 | % | 1,122 | 3.25 | % | 1,122 | 3.25 | % | - | 0.00 | % | |||||||||||
Total Interest Bearing Liabilities | 58,411 | 2.53 | % | 58,822 | 2.55 | % | (411 | ) | -0.02 | % | 14,362 | 0.74 | % | 16,760 | 0.86 | % | (2,398 | ) | -0.12 | % | |||||||||
Interest/Dividend income/yield | 139,808 | 4.67 | % | 136,597 | 4.57 | % | 3,211 | 0.10 | % | 101,149 | 3.87 | % | 99,017 | 3.79 | % | 2,132 | 0.08 | % | |||||||||||
Interest Expense / yield | 58,411 | 2.53 | % | 58,822 | 2.55 | % | (411 | ) | -0.02 | % | 14,362 | 0.74 | % | 16,760 | 0.86 | % | (2,398 | ) | -0.12 | % | |||||||||
Net Interest Spread | 81,397 | 2.14 | % | 77,775 | 2.02 | % | 3,622 | 0.12 | % | 86,787 | 3.13 | % | 82,257 | 2.93 | % | 4,530 | 0.20 | % | |||||||||||
Net Interest Margin | 2.72 | % | 2.60 | % | 0.12 | % | 3.32 | % | 3.15 | % | 0.17 | % | |||||||||||||||||
NON-GAAP RECONCILIATION OF NET INCOME | ||||||||||||||||
(in thousands of dollars, except share data) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
Non-GAAP Reconciliation of Net Income | ||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Net income as reported | $ | 5,543 | $ | 7,188 | $ | 22,787 | $ | 32,515 | ||||||||
Acquisition expenses | 24 | 2,019 | 208 | 2,511 | ||||||||||||
Tax effect on acquisition expenses | (5 | ) | (386 | ) | (42 | ) | (455 | ) | ||||||||
Net income excluding acquisition expenses and tax effect | $ | 5,562 | $ | 8,821 | $ | 22,953 | $ | 34,571 | ||||||||
Weighted average common shares outstanding including participating securities | 13,665,773 | 13,606,876 | 13,641,336 | 13,206,713 | ||||||||||||
Basic and diluted earnings per share | $ | 0.41 | $ | 0.65 | $ | 1.68 | $ | 2.62 | ||||||||
NON-GAAP RECONCILIATION OF TANGIBLE BOOK VALUE | ||||||||||||||||
Actual End of Period | Regulatory End of Period | |||||||||||||||
Non-GAAP Reconciliation of Tangible Book Value | Year to Date | Year to Date | ||||||||||||||
Shares Outstanding | 13,664,641 | 13,608,422 | 13,664,641 | 13,608,422 | ||||||||||||
Tangible Equity | ||||||||||||||||
Equity | $ | 316,543 | $ | 298,140 | $ | 316,543 | $ | 298,140 | ||||||||
Goodwill | 86,358 | 86,358 | 86,358 | 86,358 | ||||||||||||
Other Intangible | 7,548 | 9,327 | 7,548 | 9,327 | ||||||||||||
Comprehensive Loss Adjustment* | - | - | 29,012 | 38,233 | ||||||||||||
CECL Adjustment** | - | - | 2,528 | - | ||||||||||||
Tangible Equity | $ | 222,637 | $ | 202,455 | $ | 254,177 | $ | 240,688 | ||||||||
Shares Outstanding | 13,665 | 13,608 | 13,665 | 13,608 | ||||||||||||
Tangible Book Equity per Share | $ | 16.29 | $ | 14.88 | $ | 18.60 | $ | 17.69 | ||||||||
Actual Average | Regulatory Average | |||||||||||||||
Year to Date | Year to Date | |||||||||||||||
Net Income | $ | 22,787 | $ | 32,515 | $ | 22,787 | $ | 32,515 | ||||||||
Acquisition Costs - Tax Adjusted | 166 | 2,066 | 166 | 2,066 | ||||||||||||
Average Shares Outstanding | 13,641,336 | 13,206,713 | 13,641,336 | 13,206,713 | ||||||||||||
Average Tangible Equity | ||||||||||||||||
Average Equity | $ | 305,481 | $ | 287,868 | $ | 305,481 | $ | 287,868 | ||||||||
Average Goodwill | 86,358 | 80,164 | 86,358 | 80,164 | ||||||||||||
Average Other Intangible | 8,494 | 4,997 | 8,494 | 4,997 | ||||||||||||
Average Comprehensive Loss Adjustment* | - | - | 36,443 | 26,393 | ||||||||||||
Average CECL Adjustment** | - | - | 2,528 | - | ||||||||||||
Average Tangible Equity | $ | 210,629 | $ | 202,707 | $ | 249,600 | $ | 229,100 | ||||||||
Average Shares Outstanding | 13,641 | 13,207 | 13,641 | 13,207 | ||||||||||||
Average Tangible Book Equity per Share | $ | 15.44 | $ | 15.35 | $ | 18.30 | $ | 17.35 | ||||||||
Return on Average Tangible Equity | 10.82 | % | 16.04 | % | 9.13 | % | 14.19 | % | ||||||||
Return on Average Tangible Equity w/o Acquisition | 10.90 | % | 17.06 | % | 9.20 | % | 15.09 | % | ||||||||
*The Bank has adopted the Accumulated Other Comprehensive Income (AOCI) opt out election which removed AOCI from the calculation of tangible equity for regulatory purposes. | ||||||||||||||||
**ASU 2016-13 adopted during the first quarter of 2023; therefore, prior period's provision amount reflects the incurred loss method and the Bank has elected to spread the Capital adjustment over three years. The first year permits 75% of the capital adjustment to be removed from the calculation of tangible equity for regulatory purposes. |
Source:
2024 GlobeNewswire, Inc., source