“Credit quality remained strong as of year-end with nonperforming assets of
“Persistently elevated short term interest rates and intense competition have continued to place pressure on deposit rates, impacting our net interest income. Despite these challenges, we continue to actively manage these expenses to the extent possible, while prioritizing maintaining deposit balances and meeting our customers’ needs,” continued Kiley.
“Throughout the fourth quarter of 2023, our focus on cost reduction and operational efficiency yielded a decrease in noninterest expenses. We previously reported that we were in search of a senior C&I lending credit officer. However, in light of the announcement that we have entered into a Purchase and Assumption Agreement with
Highlights for the quarter and year ended
- Net loans receivable increased by
$7 .8 million in the quarter to$1 .18 billion atDecember 31, 2023 , on continued strength in our construction/land and one-to-four family residential portfolios, along with modest growth observed in other business and consumer loans. - Book value per share was
$17.61 atDecember 31, 2023 , compared to$17.35 and$17.57 forSeptember 30, 2023 andDecember 31, 2022 , respectively. - Paid regular quarterly cash dividends to shareholders totaling
$0.52 per share for the year, an 8.3% increase over the prior year. - The Bank’s Tier 1 leverage and total capital ratios were 10.2% and 16.2% at
December 31, 2023 , compared to 10.3% and 16.0% atSeptember 30, 2023 , and 10.3% and 15.6% atDecember 31, 2022 , respectively. - Credit quality remained strong with nonperforming assets totaling
$220,000 , or 0.01% of total assets, and an additional$1 .2 million in loans over 30 days past due atDecember 31, 2023 . - Based on management’s evaluation of the adequacy of the allowance for credit losses (“ACL”) at
December 31, 2023 , the Company did not record a provision for credit losses during the quarter, resulting in a net recapture of provision for credit losses of$208,000 for the year. The Company recorded a$434,000 recapture of provision for credit losses for the year endedDecember 31, 2022 .
Deposits totaled
The following table presents a breakdown of our total deposits (unaudited):
2023 | 2023 | 2022 | Three Month Change | One Year Change | |||||||||||||||
Deposits: | (Dollars in thousands) | ||||||||||||||||||
Noninterest-bearing demand | $ | 100,899 | $ | 104,164 | $ | 119,944 | $ | (3,265 | ) | $ | (19,045 | ) | |||||||
Interest-bearing demand | 56,968 | 60,816 | 96,632 | (3,848 | ) | (39,664 | ) | ||||||||||||
Savings | 18,886 | 18,844 | 23,636 | 42 | (4,750 | ) | |||||||||||||
Money market | 529,411 | 501,168 | 542,388 | 28,243 | (12,977 | ) | |||||||||||||
Certificates of deposit, retail | 357,153 | 349,446 | 262,554 | 7,707 | 94,599 | ||||||||||||||
Brokered deposits | 130,790 | 175,972 | 124,886 | (45,182 | ) | 5,904 | |||||||||||||
Total deposits | $ | 1,194,107 | $ | 1,210,410 | $ | 1,170,040 | $ | (16,303 | ) | $ | 24,067 | ||||||||
The following tables present an analysis of total deposits by branch office (unaudited):
Noninterest- bearing demand | Interest- bearing demand | Savings | Money market | Certificates of deposit, retail | Brokered deposits | Total | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
$ | 32,707 | $ | 16,280 | $ | 12,637 | $ | 317,003 | $ | 241,983 | $ | - | $ | 620,610 | ||||||||
Landing | 2,789 | 1,658 | 104 | 12,447 | 9,842 | - | 26,840 | ||||||||||||||
1,909 | 2,292 | 1,000 | 9,491 | 10,671 | - | 25,363 | |||||||||||||||
3,380 | 840 | 33 | 1,892 | 4,738 | - | 10,883 | |||||||||||||||
Crossroads | 11,075 | 3,873 | 45 | 27,564 | 14,958 | - | 57,515 | ||||||||||||||
Kent | 7,267 | 5,086 | 4 | 16,424 | 7,706 | - | 36,487 | ||||||||||||||
9,341 | 1,989 | 137 | 12,233 | 2,032 | - | 25,732 | |||||||||||||||
1,646 | 1,696 | 57 | 2,417 | 6,213 | - | 12,029 | |||||||||||||||
Total | 70,114 | 33,714 | 14,017 | 399,471 | 298,143 | - | 815,459 | ||||||||||||||
4,985 | 2,333 | 850 | 13,672 | 8,309 | - | 30,149 | |||||||||||||||
11,455 | 5,386 | 460 | 26,458 | 14,375 | - | 58,134 | |||||||||||||||
Clearview | 4,614 | 4,964 | 1,541 | 17,597 | 9,243 | - | 37,959 | ||||||||||||||
3,849 | 4,919 | 940 | 24,009 | 12,633 | - | 46,350 | |||||||||||||||
2,665 | 4,333 | 1,060 | 44,484 | 11,750 | - | 64,292 | |||||||||||||||
Total | 27,568 | 21,935 | 4,851 | 126,220 | 56,310 | - | 236,884 | ||||||||||||||
2,205 | 67 | 3 | 2,496 | 1,172 | - | 5,943 | |||||||||||||||
1,012 | 1,252 | 15 | 1,224 | 1,528 | - | 5,031 | |||||||||||||||
Total | 3,217 | 1,319 | 18 | 3,720 | 2,700 | - | 10,974 | ||||||||||||||
Brokered deposits | - | - | - | - | - | 130,790 | 130,790 | ||||||||||||||
Total deposits | $ | 100,899 | $ | 56,968 | $ | 18,886 | $ | 529,411 | $ | 357,153 | $ | 130,790 | $ | 1,194,107 | |||||||
Noninterest- bearing demand | Interest- bearing demand | Savings | Money market | Certificates of deposit, retail | Brokered deposits | Total | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
$ | 32,025 | $ | 15,316 | $ | 12,140 | $ | 284,433 | $ | 239,940 | $ | - | $ | 583,854 | ||||||||
Landing | 3,036 | 1,689 | 91 | 16,606 | 8,934 | - | 30,356 | ||||||||||||||
2,377 | 2,425 | 981 | 9,016 | 10,453 | - | 25,252 | |||||||||||||||
3,798 | 751 | 35 | 4,363 | 2,365 | - | 11,312 | |||||||||||||||
Crossroads | 10,589 | 4,067 | 77 | 28,773 | 14,460 | - | 57,966 | ||||||||||||||
Kent | 6,665 | 7,397 | 4 | 13,310 | 7,839 | - | 35,215 | ||||||||||||||
10,385 | 1,765 | 148 | 12,277 | 1,174 | - | 25,749 | |||||||||||||||
1,476 | 1,966 | 30 | 3,719 | 6,170 | - | 13,361 | |||||||||||||||
Total | 70,351 | 35,376 | 13,506 | 372,497 | 291,335 | - | 783,065 | ||||||||||||||
5,126 | 3,474 | 639 | 14,069 | 7,910 | - | 31,218 | |||||||||||||||
11,817 | 6,735 | 950 | 24,681 | 14,848 | - | 59,031 | |||||||||||||||
Clearview | 5,497 | 5,468 | 1,495 | 18,896 | 9,132 | - | 40,488 | ||||||||||||||
3,740 | 4,567 | 964 | 23,657 | 12,126 | - | 45,054 | |||||||||||||||
3,568 | 3,877 | 1,272 | 42,544 | 11,835 | - | 63,096 | |||||||||||||||
Total | 29,748 | 24,121 | 5,320 | 123,847 | 55,851 | - | 238,887 | ||||||||||||||
3,176 | 99 | 3 | 3,279 | 996 | - | 7,553 | |||||||||||||||
889 | 1,220 | 15 | 1,545 | 1,264 | - | 4,933 | |||||||||||||||
Total | 4,065 | 1,319 | 18 | 4,824 | 2,260 | - | 12,486 | ||||||||||||||
Brokered deposits | - | - | - | - | - | 175,972 | 175,972 | ||||||||||||||
Total deposits | $ | 104,164 | $ | 60,816 | $ | 18,844 | $ | 501,168 | $ | 349,446 | $ | 175,972 | $ | 1,210,410 | |||||||
Net loans receivable totaled
The allowance for credit losses (“ACL”) represented 1.28% of total loans receivable at
Nonperforming loans totaled
The following table presents a breakdown of our nonperforming assets (unaudited):
Three Month | One Year | ||||||||||||||||||
2023 | 2023 | 2022 | Change | Change | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Nonperforming loans: | |||||||||||||||||||
Consumer | $ | 220 | $ | 201 | $ | 193 | $ | 19 | $ | 27 | |||||||||
Total nonperforming loans | 220 | 201 | 193 | 19 | 27 | ||||||||||||||
OREO | – | – | ─ | – | – | ||||||||||||||
Total nonperforming assets | $ | 220 | $ | 201 | $ | 193 | $ | 19 | $ | 27 | |||||||||
Nonperforming assets as a percent | |||||||||||||||||||
of total assets | 0.01 | % | 0.01 | % | 0.01 | % | |||||||||||||
Net interest income totaled
Total interest income was
Total interest expense was
The net interest margin was 2.54% for the quarter ended
Noninterest income for the quarter ended
Noninterest expense totaled
Forward-looking statements:
When used in this press release and in other documents filed with or furnished to the
Any of the forward-looking statements that we make in this Press Release and in the other public statements are based upon management’s beliefs and assumptions at the time they are made and may turn out to be wrong because of the inaccurate assumptions we might make, because of the factors illustrated above or because of other factors that we cannot foresee. Therefore, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
For more information, contact:
Joseph W. Kiley III, President and Chief Executive Officer
(425) 255-4400
Consolidated Balance Sheets (Dollars in thousands, except share data) (Unaudited) | |||||||||||||||||
Assets | 2023 | 2023 | 2022 | Three Month Change | One Year Change | ||||||||||||
Cash on hand and in banks | $ | 8,391 | $ | 8,074 | $ | 7,722 | 3.9 | % | 8.7 | % | |||||||
Interest-earning deposits with banks | 22,138 | 49,618 | 16,598 | (55.4 | ) | 33.4 | |||||||||||
Investments available-for-sale, at fair value | 207,915 | 204,975 | 217,778 | 1.4 | (4.5 | ) | |||||||||||
Investments held-to-maturity, at amortized cost | 2,456 | 2,450 | 2,444 | 0.2 | 0.5 | ||||||||||||
Loans receivable, net of allowance of | 1,175,925 | 1,168,079 | 1,167,083 | 0.7 | 0.8 | ||||||||||||
6,527 | 6,803 | 7,512 | (4.1 | ) | (13.1 | ) | |||||||||||
Accrued interest receivable | 7,359 | 7,263 | 6,513 | 1.3 | 13.0 | ||||||||||||
Deferred tax assets, net | 2,648 | 3,156 | 2,597 | (16.1 | ) | 2.0 | |||||||||||
Premises and equipment, net | 19,667 | 19,921 | 21,192 | (1.3 | ) | (7.2 | ) | ||||||||||
Bank owned life insurance ("BOLI"), net | 37,653 | 37,398 | 36,286 | 0.7 | 3.8 | ||||||||||||
Prepaid expenses and other assets | 10,478 | 13,673 | 12,479 | (23.4 | ) | (16.0 | ) | ||||||||||
Right of use asset ("ROU"), net | 2,617 | 2,818 | 3,275 | (7.1 | ) | (20.1 | ) | ||||||||||
889 | 889 | 889 | 0.0 | 0.0 | |||||||||||||
Core deposit intangible, net | 419 | 451 | 548 | (7.1 | ) | (23.5 | ) | ||||||||||
Total assets | $ | 1,505,082 | $ | 1,525,568 | $ | 1,502,916 | (1.3 | ) | 0.1 | ||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||
Deposits | |||||||||||||||||
Noninterest-bearing deposits | $ | 100,899 | $ | 104,164 | $ | 119,944 | (3.1 | ) | (15.9 | ) | |||||||
Interest-bearing deposits | 1,093,208 | 1,106,246 | 1,050,096 | (1.2 | ) | 4.1 | |||||||||||
Total deposits | 1,194,107 | 1,210,410 | 1,170,040 | (1.3 | ) | 2.1 | |||||||||||
Advances from the FHLB | 125,000 | 125,000 | 145,000 | 0.0 | (13.8 | ) | |||||||||||
Advance payments from borrowers for taxes and insurance | 2,952 | 4,760 | 3,051 | (38.0 | ) | (3.2 | ) | ||||||||||
Lease liability, net | 2,806 | 3,011 | 3,454 | (6.8 | ) | (18.8 | ) | ||||||||||
Accrued interest payable | 2,739 | 2,646 | 328 | 3.5 | 735.1 | ||||||||||||
Other liabilities | 15,818 | 20,506 | 20,683 | (22.9 | ) | (23.5 | ) | ||||||||||
Total liabilities | 1,343,422 | 1,366,333 | 1,342,556 | (1.7 | ) | 0.1 | |||||||||||
Commitments and contingencies | |||||||||||||||||
Stockholders' Equity | |||||||||||||||||
Preferred stock, | - | - | - | n/a | n/a | ||||||||||||
Common stock, 9,179,510 shares at | 92 | 92 | 91 | 0.0 | 1.1 | ||||||||||||
Additional paid-in capital | 73,035 | 72,926 | 72,424 | 0.1 | 0.8 | ||||||||||||
Retained earnings | 96,206 | 96,206 | 95,059 | 0.0 | 1.2 | ||||||||||||
Accumulated other comprehensive loss, net of tax | (7,673 | ) | (9,989 | ) | (7,214 | ) | (23.2 | ) | 6.4 | ||||||||
Total stockholders' equity | 161,660 | 159,235 | 160,360 | 1.5 | 0.8 | ||||||||||||
Total liabilities and stockholders' equity | $ | 1,505,082 | $ | 1,525,568 | $ | 1,502,916 | (1.3 | )% | 0.1 | % | |||||||
Consolidated Income Statements (Dollars in thousands, except share data) (Unaudited) | |||||||||||||||||
Quarter Ended | |||||||||||||||||
2023 | 2023 | 2022 | Three Month Change | One Year Change | |||||||||||||
Interest income | |||||||||||||||||
Loans, including fees | $ | 17,143 | $ | 16,918 | $ | 15,042 | 1.3 | % | 14.0 | % | |||||||
Investments | 2,143 | 2,118 | 2,007 | 1.2 | 6.8 | ||||||||||||
Interest-earning deposits with banks | 880 | 525 | 205 | 67.6 | 329.3 | ||||||||||||
Dividends on FHLB Stock | 121 | 113 | 89 | 7.1 | 36.0 | ||||||||||||
Total interest income | 20,287 | 19,674 | 17,343 | 3.1 | 17.0 | ||||||||||||
Interest expense | |||||||||||||||||
Deposits | 10,281 | 9,205 | 3,972 | 11.7 | 158.8 | ||||||||||||
FHLB advances and other borrowings | 731 | 766 | 928 | (4.6 | ) | (21.2 | ) | ||||||||||
Total interest expense | 11,012 | 9,971 | 4,900 | 10.4 | 124.7 | ||||||||||||
Net interest income | 9,275 | 9,703 | 12,443 | (4.4 | ) | (25.5 | ) | ||||||||||
(Recapture of provision) provision for credit losses | - | (300 | ) | 486 | (100.0 | ) | (100.0 | ) | |||||||||
Net interest income after (recapture of provision) provision for credit losses | 9,275 | 10,003 | 11,957 | (7.3 | ) | (22.4 | ) | ||||||||||
Noninterest income | |||||||||||||||||
Net gain on sale of investments | - | - | 27 | n/a | (100.0 | ) | |||||||||||
BOLI income | 255 | 244 | 222 | 4.5 | 14.9 | ||||||||||||
Wealth management revenue | 60 | 53 | 36 | 13.2 | 66.7 | ||||||||||||
Deposit related fees | 234 | 247 | 231 | (5.3 | ) | 1.3 | |||||||||||
Loan related fees | 60 | 79 | 172 | (24.1 | ) | (65.1 | ) | ||||||||||
Other | 24 | 54 | 32 | (55.6 | ) | (25.0 | ) | ||||||||||
Total noninterest income | 633 | 677 | 720 | (6.5 | ) | (12.1 | ) | ||||||||||
Noninterest expense | |||||||||||||||||
Salaries and employee benefits | 4,822 | 5,018 | 4,977 | (3.9 | ) | (3.1 | ) | ||||||||||
Occupancy and equipment | 1,231 | 1,193 | 1,155 | 3.2 | 6.6 | ||||||||||||
Professional fees | 431 | 553 | 607 | (22.1 | ) | (29.0 | ) | ||||||||||
Data processing | 718 | 742 | 634 | (3.2 | ) | 13.2 | |||||||||||
Regulatory assessments | 196 | 200 | 108 | (2.0 | ) | 81.5 | |||||||||||
Insurance and bond premiums | 113 | 111 | 111 | 1.8 | 1.8 | ||||||||||||
Marketing | 70 | 97 | 77 | (27.8 | ) | (9.1 | ) | ||||||||||
Other general and administrative | 858 | 856 | 1,011 | 0.2 | (15.1 | ) | |||||||||||
Total noninterest expense | 8,439 | 8,770 | 8,680 | (3.8 | ) | (2.8 | ) | ||||||||||
Income before federal income tax provision | 1,469 | 1,910 | 3,997 | (23.1 | ) | (63.2 | ) | ||||||||||
Federal income tax provision | 275 | 409 | 771 | (32.8 | ) | (64.3 | ) | ||||||||||
Net income | $ | 1,194 | $ | 1,501 | $ | 3,226 | (20.5 | )% | (63.0 | )% | |||||||
Basic earnings per share | $ | 0.13 | $ | 0.16 | $ | 0.35 | |||||||||||
Diluted earnings per share | $ | 0.13 | $ | 0.16 | $ | 0.35 | |||||||||||
Weighted average number of common shares outstanding | 9,151,892 | 9,127,568 | 9,073,323 | ||||||||||||||
Weighted average number of diluted shares outstanding | 9,176,724 | 9,150,059 | 9,149,044 | ||||||||||||||
Consolidated Income Statements (Dollars in thousands, except share data) (Unaudited) | ||||||||||
Year Ended | ||||||||||
2023 | 2022 | One Year Change | ||||||||
Interest income | ||||||||||
Loans, including fees | $ | 66,938 | $ | 52,935 | 26.5 | % | ||||
Investments | 8,474 | 5,603 | 51.2 | |||||||
Interest-earning deposits with banks | 2,261 | 386 | 485.8 | |||||||
Dividends on FHLB Stock | 485 | 318 | 52.5 | |||||||
Total interest income | 78,158 | 59,242 | 31.9 | |||||||
Interest expense | ||||||||||
Deposits | 34,407 | 8,955 | 284.2 | |||||||
FHLB advances | 3,208 | 1,934 | 65.9 | |||||||
Total interest expense | 37,615 | 10,889 | 245.4 | |||||||
Net interest income | 40,543 | 48,353 | (16.2 | ) | ||||||
Recapture of provision for credit losses | (208 | ) | (434 | ) | (52.1 | ) | ||||
Net interest income after recapture of provision for credit losses | 40,751 | 48,787 | (16.5 | ) | ||||||
Noninterest income | ||||||||||
Net gain on sale of investments | - | 27 | (100.0 | ) | ||||||
BOLI | 1,081 | 1,004 | 7.7 | |||||||
Wealth management revenue | 253 | 312 | (18.9 | ) | ||||||
Deposit accounts related fees | 956 | 936 | 2.1 | |||||||
Loan related fees | 275 | 919 | (70.1 | ) | ||||||
Other | 208 | 49 | 324.5 | |||||||
Total noninterest income | 2,773 | 3,247 | (14.6 | ) | ||||||
Noninterest expense | ||||||||||
Salaries and employee benefits | 20,366 | 21,133 | (3.6 | ) | ||||||
Occupancy and equipment | 4,748 | 4,776 | (0.6 | ) | ||||||
Professional fees | 2,288 | 2,339 | (2.2 | ) | ||||||
Data processing | 2,857 | 2,678 | 6.7 | |||||||
Regulatory assessments | 763 | 403 | 89.3 | |||||||
Insurance and bond premiums | 468 | 464 | 0.9 | |||||||
Marketing | 343 | 303 | 13.2 | |||||||
Other general and administrative | 3,833 | 3,529 | 8.6 | |||||||
Total noninterest expense | 35,666 | 35,625 | 0.1 | |||||||
Income before federal income tax provision | 7,858 | 16,409 | (52.1 | ) | ||||||
Federal income tax provision | 1,553 | 3,169 | (51.0 | ) | ||||||
Net income | $ | 6,305 | $ | 13,240 | (52.4 | )% | ||||
Basic earnings per share | $ | 0.69 | $ | 1.47 | ||||||
Diluted earnings per share | $ | 0.69 | $ | 1.45 | ||||||
Weighted average number of common shares outstanding | 9,126,209 | 9,006,369 | ||||||||
Weighted average number of diluted shares outstanding | 9,152,617 | 9,102,283 | ||||||||
The following table presents a breakdown of the loan portfolio (unaudited):
Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||
Residential: | ||||||||||||||||||||
Multifamily | $ | 138,149 | 11.6 | % | $ | 140,022 | 11.7 | % | $ | 126,866 | 10.7 | % | ||||||||
Total multifamily residential | 138,149 | 11.6 | 140,022 | 11.7 | 126,866 | 10.7 | ||||||||||||||
Non-residential: | ||||||||||||||||||||
Office | 72,778 | 6.1 | 72,773 | 6.1 | 84,301 | 7.1 | ||||||||||||||
Retail | 124,172 | 10.4 | 130,101 | 11.0 | 132,917 | 11.3 | ||||||||||||||
Mobile home park | 21,701 | 1.8 | 21,285 | 1.8 | 25,283 | 2.1 | ||||||||||||||
Hotel / motel | 63,597 | 5.3 | 63,954 | 5.4 | 55,408 | 4.7 | ||||||||||||||
11,610 | 1.0 | 11,676 | 1.0 | 12,348 | 1.0 | |||||||||||||||
Warehouse | 19,218 | 1.6 | 19,446 | 1.6 | 19,917 | 1.7 | ||||||||||||||
Storage | 33,033 | 2.8 | 33,229 | 2.8 | 33,797 | 2.9 | ||||||||||||||
Other non-residential | 31,750 | 2.6 | 42,227 | 3.7 | 43,933 | 3.7 | ||||||||||||||
Total non-residential | 377,859 | 31.6 | 394,691 | 33.4 | 407,904 | 34.5 | ||||||||||||||
Construction/land: | ||||||||||||||||||||
One-to-four family residential | 47,149 | 4.0 | 43,532 | 3.7 | 52,492 | 4.5 | ||||||||||||||
Multifamily | 4,004 | 0.3 | 2,043 | 0.2 | 15,393 | 1.3 | ||||||||||||||
Land development | 9,771 | 0.8 | 9,766 | 0.8 | 9,759 | 0.8 | ||||||||||||||
Total construction/land | 60,924 | 5.1 | 55,341 | 4.7 | 77,644 | 6.6 | ||||||||||||||
One-to-four family residential: | ||||||||||||||||||||
Permanent owner occupied | 228,752 | 19.2 | 260,970 | 22.1 | 232,869 | 19.7 | ||||||||||||||
Permanent non-owner occupied | 284,471 | 23.9 | 232,238 | 19.6 | 241,311 | 20.4 | ||||||||||||||
Total one-to-four family residential | 513,223 | 43.1 | 493,208 | 41.7 | 474,180 | 40.1 | ||||||||||||||
Business | ||||||||||||||||||||
Aircraft | 1,945 | 0.1 | 1,981 | 0.2 | 2,087 | 0.2 | ||||||||||||||
1,794 | 0.3 | 1,810 | 0.3 | 514 | 0.1 | |||||||||||||||
Paycheck Protection Plan ("PPP") | 473 | 0.0 | 551 | 0.0 | 783 | 0.1 | ||||||||||||||
Other business | 24,869 | 2.1 | 23,633 | 1.9 | 27,979 | 2.3 | ||||||||||||||
Total business | 29,081 | 2.5 | 27,975 | 2.4 | 31,363 | 2.7 | ||||||||||||||
Consumer | ||||||||||||||||||||
Classic, collectible and other auto | 58,618 | 5.0 | 59,955 | 5.1 | 55,838 | 4.7 | ||||||||||||||
Other consumer | 13,377 | 1.1 | 12,193 | 1.0 | 8,515 | 0.7 | ||||||||||||||
Total consumer | 71,995 | 6.1 | 72,148 | 6.1 | 64,353 | 5.4 | ||||||||||||||
Total loans | 1,191,231 | 100.0 | % | 1,183,385 | 100.0 | % | 1,182,310 | 100.0 | % | |||||||||||
Less: | ||||||||||||||||||||
ACL | 15,306 | 15,306 | 15,227 | |||||||||||||||||
Loans receivable, net | $ | 1,175,925 | $ | 1,168,079 | $ | 1,167,083 | ||||||||||||||
Concentrations of credit: (1) | ||||||||||||||||||||
Construction loans as % of total capital | 38.3 | % | 37.8 | % | 53.1 | % | ||||||||||||||
Total non-owner occupied commercial real estate as % of total capital | 316.8 | % | 328.1 | % | 346.9 | % | ||||||||||||||
(1) Concentrations of credit percentages are for | ||||||||||||||||||||
Key Financial Measures (Unaudited) | |||||||||||||||||||
At or For the Quarter Ended | |||||||||||||||||||
2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||
Performance Ratios: (1) | |||||||||||||||||||
Return on assets | 0.31 | % | 0.39 | % | 0.39 | % | 0.57 | % | 0.86 | % | |||||||||
Return on equity | 2.97 | 3.71 | 3.74 | 5.31 | 8.04 | ||||||||||||||
Dividend payout ratio | 100.00 | 79.26 | 79.90 | 56.52 | 34.29 | ||||||||||||||
Equity-to-assets ratio | 10.74 | 10.44 | 10.39 | 10.14 | 10.67 | ||||||||||||||
Tangible equity ratio (2) | 10.66 | 10.36 | 10.31 | 10.06 | 10.58 | ||||||||||||||
Net interest margin | 2.54 | 2.69 | 2.84 | 3.22 | 3.52 | ||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 115.84 | 116.94 | 116.27 | 117.78 | 117.93 | ||||||||||||||
Efficiency ratio | 85.17 | 84.49 | 85.57 | 75.12 | 65.94 | ||||||||||||||
Noninterest expense as a percent of average total assets | 2.18 | 2.29 | 2.50 | 2.42 | 2.30 | ||||||||||||||
Book value per common share | $ | 17.61 | $ | 17.35 | $ | 17.35 | $ | 17.45 | $ | 17.57 | |||||||||
Tangible book value per share (2) | 17.47 | 17.20 | 17.20 | 17.30 | 17.41 | ||||||||||||||
Capital Ratios: (3) | |||||||||||||||||||
Tier 1 leverage ratio | 10.18 | % | 10.25 | % | 10.02 | % | 10.24 | % | 10.31 | % | |||||||||
Common equity tier 1 capital ratio | 14.90 | 14.75 | 14.49 | 14.33 | 14.37 | ||||||||||||||
Tier 1 capital ratio | 14.90 | 14.75 | 14.49 | 14.33 | 14.37 | ||||||||||||||
Total capital ratio | 16.15 | 16.00 | 15.75 | 15.59 | 15.62 | ||||||||||||||
Asset Quality Ratios: (4) | |||||||||||||||||||
Nonperforming loans as a percent of total loans | 0.02 | % | 0.02 | % | 0.02 | % | 0.02 | % | 0.02 | % | |||||||||
Nonperforming assets as a percent of total assets | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | ||||||||||||||
ACL as a percent of total loans | 1.28 | 1.29 | 1.31 | 1.33 | 1.29 | ||||||||||||||
Net (recoveries) charge-offs to average loans receivable, net | 0.00 | 0.00 | 0.00 | (0.00 | ) | (0.00 | ) | ||||||||||||
Allowance for Credit Losses: | |||||||||||||||||||
ACL, beginning of the quarter | $ | 15,306 | $ | 15,606 | $ | 16,028 | $ | 15,227 | $ | 14,726 | |||||||||
Beginning balance adjustment from adoption of Topic 326 | - | - | - | 500 | - | ||||||||||||||
(Recapture of provision) provision | - | (300 | ) | (400 | ) | 300 | 500 | ||||||||||||
Charge-offs | - | - | (22 | ) | - | - | |||||||||||||
Recoveries | - | - | - | 1 | 1 | ||||||||||||||
ACL, end of the quarter | $ | 15,306 | $ | 15,306 | $ | 15,606 | $ | 16,028 | $ | 15,227 | |||||||||
(1) Performance ratios are calculated on an annualized basis. | |||||||||||||||||||
(2) Tangible equity and tangible assets exclude goodwill and core deposit intangible assets. Tangible equity, tangible assets, tangible equity ratio and tangible book value per share are non-GAAP financial measures. Refer to Non-GAAP Financial Measures at the end of this press release for a reconciliation to the nearest GAAP equivalents. | |||||||||||||||||||
(3) Capital ratios are for | |||||||||||||||||||
(4) Loans are reported net of undisbursed funds. | |||||||||||||||||||
Key Financial Measures (Unaudited) | |||||||||||||||||||
At or For the Quarter Ended | |||||||||||||||||||
2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Yields and Costs: (1) | |||||||||||||||||||
Yield on loans | 5.83 | % | 5.73 | % | 5.71 | % | 5.56 | % | 5.19 | % | |||||||||
Yield on investments | 4.11 | 3.98 | 3.93 | 3.88 | 3.60 | ||||||||||||||
Yield on interest-earning deposits | 5.32 | 5.18 | 4.91 | 4.40 | 3.31 | ||||||||||||||
Yield on FHLB stock | 7.29 | 6.57 | 7.06 | 7.30 | 4.58 | ||||||||||||||
Yield on interest-earning assets | 5.56 | % | 5.46 | % | 5.43 | % | 5.29 | % | 4.90 | % | |||||||||
Cost of interest-bearing deposits | 3.62 | % | 3.33 | % | 3.06 | % | 2.41 | % | 1.51 | % | |||||||||
Cost of borrowings | 2.40 | 2.42 | 2.55 | 2.69 | 2.46 | ||||||||||||||
Cost of interest-bearing liabilities | 3.50 | % | 3.24 | % | 3.01 | % | 2.44 | % | 1.63 | % | |||||||||
Cost of total deposits | 3.31 | % | 3.03 | % | 2.78 | % | 2.17 | % | 1.36 | % | |||||||||
Cost of funds | 3.23 | 2.97 | 2.76 | 2.23 | 1.48 | ||||||||||||||
Average Balances: | |||||||||||||||||||
Loans | $ | 1,167,339 | $ | 1,171,483 | $ | 1,182,939 | $ | 1,168,539 | $ | 1,150,181 | |||||||||
Investments | 206,837 | 211,291 | 215,113 | 219,969 | 221,113 | ||||||||||||||
Interest-earning deposits | 65,680 | 40,202 | 50,691 | 21,729 | 24,608 | ||||||||||||||
FHLB stock | 6,584 | 6,820 | 6,814 | 7,219 | 7,710 | ||||||||||||||
Total interest-earning assets | $ | 1,446,440 | $ | 1,429,796 | $ | 1,455,557 | $ | 1,417,456 | $ | 1,403,612 | |||||||||
Interest-bearing deposits | $ | 1,127,690 | $ | 1,097,324 | $ | 1,126,598 | $ | 1,065,827 | $ | 1,040,357 | |||||||||
Borrowings | 120,978 | 125,402 | 125,275 | 137,600 | 149,946 | ||||||||||||||
Total interest-bearing liabilities | $ | 1,248,668 | $ | 1,222,726 | $ | 1,251,873 | $ | 1,203,427 | $ | 1,190,303 | |||||||||
Noninterest-bearing deposits | 102,869 | 109,384 | 111,365 | 115,708 | 121,518 | ||||||||||||||
Total deposits and borrowings | $ | 1,351,537 | $ | 1,332,110 | $ | 1,363,238 | $ | 1,319,135 | $ | 1,311,821 | |||||||||
Average assets | $ | 1,538,955 | $ | 1,522,224 | $ | 1,547,321 | $ | 1,509,297 | $ | 1,496,125 | |||||||||
Average stockholders' equity | 159,659 | 160,299 | 159,764 | 162,016 | 159,120 | ||||||||||||||
(1) Yields and costs are annualized. | |||||||||||||||||||
Key Financial Measures (Unaudited) | |||||||||||||||||||
At or For the Year Ended | |||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||
Performance Ratios: | |||||||||||||||||||
Return on assets | 0.41 | % | 0.91 | % | 0.86 | % | 0.63 | % | 0.80 | % | |||||||||
Return on equity | 3.93 | 8.34 | 7.65 | 5.50 | 6.73 | ||||||||||||||
Dividend payout ratio | 75.36 | 32.65 | 33.59 | 45.45 | 33.65 | ||||||||||||||
Equity-to-assets ratio | 10.74 | 10.67 | 11.07 | 11.26 | 11.65 | ||||||||||||||
Tangible equity ratio (1) | 10.66 | 10.58 | 10.97 | 11.15 | 11.53 | ||||||||||||||
Net interest margin | 2.82 | 3.54 | 3.35 | 3.15 | 3.19 | ||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 116.69 | 119.18 | 118.59 | 115.62 | 113.44 | ||||||||||||||
Efficiency ratio | 82.34 | 69.04 | 68.32 | 72.39 | 70.66 | ||||||||||||||
Noninterest expense as a percent of average total assets | 2.33 | 2.44 | 2.35 | 2.39 | 2.35 | ||||||||||||||
Book value per common share | $ | 17.61 | $ | 17.57 | $ | 17.30 | $ | 16.05 | $ | 15.25 | |||||||||
Tangible book value per share (1) | 17.47 | 17.41 | 17.13 | 15.88 | 15.07 | ||||||||||||||
Capital Ratios: (2) | |||||||||||||||||||
Tier 1 leverage ratio | 10.18 | % | 10.31 | % | 10.34 | % | 10.29 | % | 10.27 | % | |||||||||
Common equity tier 1 capital ratio | 14.90 | 14.37 | 14.23 | 14.32 | 13.13 | ||||||||||||||
Tier 1 capital ratio | 14.90 | 14.37 | 14.23 | 14.32 | 13.13 | ||||||||||||||
Total capital ratio | 16.15 | 15.62 | 15.48 | 15.57 | 14.38 | ||||||||||||||
Asset Quality Ratios: (3) | |||||||||||||||||||
Nonperforming loans as a percent of total loans | 0.02 | % | 0.02 | % | 0.00 | % | 0.19 | % | 0.01 | % | |||||||||
Nonperforming assets as a percent of total assets | 0.01 | 0.01 | 0.00 | 0.18 | 0.04 | ||||||||||||||
ACL as a percent of total loans | 1.28 | 1.29 | 1.40 | 1.36 | 1.18 | ||||||||||||||
Net charge-offs (recoveries) to average loans receivable, net | 0.00 | 0.00 | (0.02 | ) | (0.00 | ) | (0.02 | ) | |||||||||||
Allowance for Credit Losses: | |||||||||||||||||||
ACL, beginning of the year | $ | 15,227 | $ | 15,657 | $ | 15,174 | $ | 13,218 | $ | 13,347 | |||||||||
Beginning balance adjustment from adoption of Topic 326 | 500 | - | - | - | - | ||||||||||||||
(Recapture of provision) provision | (400 | ) | (400 | ) | 300 | 1,900 | (300 | ) | |||||||||||
Charge-offs | (22 | ) | (37 | ) | - | (2 | ) | - | |||||||||||
Recoveries | 1 | 7 | 183 | 58 | 171 | ||||||||||||||
ACL, end of the year | $ | 15,306 | $ | 15,227 | $ | 15,657 | $ | 15,174 | $ | 13,218 | |||||||||
(1) Tangible equity and tangible assets exclude goodwill and core deposit intangible assets. Tangible equity, tangible, tangible equity ratio and tangible book value per share are non-GAAP financial measures. Refer to Non-GAAP Financial Measures at the end of this press release for a reconciliation to the nearest GAAP equivalents. | |||||||||||||||||||
(2) Capital ratios are for | |||||||||||||||||||
(3) Loans are reported net of undisbursed funds. | |||||||||||||||||||
Key Financial Measures (continued) (Unaudited) | |||||||||||||||||||
At or For the Year Ended | |||||||||||||||||||
2023 | 2022 | 2021 | 2020 | | 2019 | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Yields and Costs: | |||||||||||||||||||
Yield on loans | 5.71 | % | 4.69 | % | 4.57 | % | 4.69 | % | 5.15 | % | |||||||||
Yield on investments | 3.97 | 2.77 | 1.83 | 2.39 | 3.11 | ||||||||||||||
Yield on interest-earning deposits | 5.06 | 1.28 | 0.12 | 0.21 | 2.15 | ||||||||||||||
Yield on FHLB stock | 7.07 | 5.08 | 5.29 | 4.85 | 5.42 | ||||||||||||||
Yield on interest-earning assets | 5.44 | % | 4.33 | % | 4.01 | % | 4.36 | % | 4.88 | % | |||||||||
Cost of deposits | 3.12 | % | 0.87 | % | 0.71 | % | 1.42 | % | 1.90 | % | |||||||||
Cost of borrowings | 2.52 | 1.70 | 1.39 | 1.31 | 2.09 | ||||||||||||||
Cost of interest-bearing liabilities | 3.05 | % | 0.95 | % | 0.78 | % | 1.41 | % | 1.92 | % | |||||||||
Cost of interest-bearing deposits | 2.83 | % | 0.77 | % | 0.64 | % | 1.32 | % | 1.81 | % | |||||||||
Cost of funds | 2.80 | 0.86 | 0.71 | 1.32 | 1.84 | ||||||||||||||
Average Balances: | |||||||||||||||||||
Loans | $ | 1,172,569 | $ | 1,128,835 | $ | 1,098,772 | $ | 1,120,889 | $ | 1,061,367 | |||||||||
Investments | 213,261 | 203,165 | 176,110 | 133,584 | 139,354 | ||||||||||||||
Interest-earning deposits | 44,684 | 30,176 | 60,482 | 25,108 | 13,634 | ||||||||||||||
FHLB stock | 6,857 | 6,256 | 6,271 | 6,600 | 6,684 | ||||||||||||||
Total interest-earning assets | $ | 1,437,371 | $ | 1,368,432 | $ | 1,341,635 | $ | 1,286,181 | $ | 1,221,039 | |||||||||
Interest-bearing deposits | $ | 1,104,510 | $ | 1,034,351 | $ | 1,015,852 | $ | 987,069 | $ | 946,484 | |||||||||
Borrowings | 127,263 | 113,890 | 115,466 | 125,392 | 129,899 | ||||||||||||||
Total interest-bearing liabilities | $ | 1,231,773 | $ | 1,148,241 | $ | 1,131,318 | $ | 1,112,461 | $ | 1,076,383 | |||||||||
Noninterest-bearing deposits | 109,795 | 125,166 | 112,484 | 75,388 | 48,434 | ||||||||||||||
Total deposits and borrowings | $ | 1,341,568 | $ | 1,273,407 | $ | 1,243,802 | $ | 1,187,849 | $ | 1,124,817 | |||||||||
Average assets | $ | 1,529,511 | $ | 1,455,739 | $ | 1,421,476 | $ | 1,361,604 | $ | 1,294,164 | |||||||||
Average stockholders' equity | 160,428 | 158,685 | 160,041 | 155,587 | 154,092 | ||||||||||||||
Non-GAAP Financial Measures
In addition to financial results presented in accordance with generally accepted accounting principles utilized in
The following tables provide a reconciliation between the GAAP and non-GAAP measures:
Quarter Ended | |||||||||||||||||||
2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||
Tangible equity to tangible assets and tangible book value per share: | |||||||||||||||||||
Total stockholders' equity (GAAP) | $ | 161,660 | $ | 159,235 | $ | 158,715 | $ | 159,645 | $ | 160,360 | |||||||||
Less: | |||||||||||||||||||
889 | 889 | 889 | 889 | 889 | |||||||||||||||
Core deposit intangible, net | 419 | 451 | 484 | 516 | 548 | ||||||||||||||
Tangible equity (Non-GAAP) | $ | 160,352 | $ | 157,895 | $ | 157,342 | $ | 158,240 | $ | 158,923 | |||||||||
Total assets (GAAP) | $ | 1,505,082 | $ | 1,525,568 | $ | 1,528,079 | $ | 1,574,271 | $ | 1,502,916 | |||||||||
Less: | |||||||||||||||||||
889 | 889 | 889 | 889 | 889 | |||||||||||||||
Core deposit intangible, net | 419 | 451 | 484 | 516 | 548 | ||||||||||||||
Tangible assets (Non-GAAP) | $ | 1,503,774 | $ | 1,524,228 | $ | 1,526,706 | $ | 1,572,866 | $ | 1,501,479 | |||||||||
Common shares outstanding at period end | 9,179,510 | 9,179,510 | 9,148,086 | 9,148,086 | 9,127,595 | ||||||||||||||
Equity-to-assets ratio (GAAP) | 10.74 | % | 10.44 | % | 10.39 | % | 10.14 | % | 10.67 | % | |||||||||
Tangible equity-to-tangible assets ratio (Non-GAAP) | 10.66 | 10.36 | 10.31 | 10.06 | 10.58 | ||||||||||||||
Book value per common share (GAAP) | $ | 17.61 | $ | 17.35 | $ | 17.35 | $ | 17.45 | $ | 17.57 | |||||||||
Tangible book value per share (Non-GAAP) | 17.47 | 17.20 | 17.20 | 17.30 | 17.41 | ||||||||||||||
Year Ended | |||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||
Tangible equity to tangible assets and tangible book value per share: | |||||||||||||||||||
Total stockholders' equity (GAAP) | $ | 161,660 | $ | 160,360 | $ | 157,879 | $ | 156,302 | $ | 156,319 | |||||||||
Less: | |||||||||||||||||||
889 | 889 | 889 | 889 | 889 | |||||||||||||||
Core deposit intangible | 419 | 548 | 684 | 824 | 968 | ||||||||||||||
Tangible equity (Non-GAAP) | $ | 160,352 | $ | 158,923 | $ | 156,306 | $ | 154,589 | $ | 154,462 | |||||||||
Total assets (GAAP) | 1,505,082 | 1,502,916 | 1,426,329 | 1,387,669 | 1,341,885 | ||||||||||||||
Less: | |||||||||||||||||||
889 | 889 | 889 | 889 | 889 | |||||||||||||||
Core deposit intangible | 419 | 548 | 684 | 824 | 968 | ||||||||||||||
Tangible assets (Non-GAAP) | $ | 1,503,774 | $ | 1,501,479 | $ | 1,424,756 | $ | 1,385,956 | $ | 1,340,028 | |||||||||
Common shares outstanding at period end | 9,179,510 | 9,127,595 | 9,125,759 | 9,736,875 | 10,252,953 | ||||||||||||||
Equity-to-assets ratio (GAAP) | 10.74 | % | 10.67 | % | 11.07 | % | 11.26 | % | 11.65 | % | |||||||||
Tangible equity ratio (Non-GAAP) | 10.66 | 10.58 | 10.97 | 11.15 | 11.53 | ||||||||||||||
Book value per common share (GAAP) | $ | 17.61 | $ | 17.57 | $ | 17.30 | $ | 16.05 | $ | 15.25 | |||||||||
Tangible book value per share (Non-GAAP) | 17.47 | 17.41 | 17.13 | 15.88 | 15.07 | ||||||||||||||
Source:
2024 GlobeNewswire, Inc., source