The Company, which serves commercial and individual clients across
“We had a strong start to the year highlighted by solid earnings, a stable top quartile peer net interest margin, an enviable efficiency ratio and best-in-class return on tangible common equity” noted
Key Highlights for the First Quarter of 2024
- Our pending merger of equals with
Burke & Herbert Financial Services Corp. (“Burke & Herbert”) has received all required regulatory approvals or waivers and is expected to closeMay 3, 2024 . - Tangible Book Value Per Common Share (“TBVPCS”) increased by
$1.02 to$24.91 during the first quarter of 2024, representing a 4.3 percent increase. This increase was primarily due to net retained earnings. - Our net interest margin (“NIM”) decreased 1 basis point to 3.75 percent from the linked quarter.
- The first quarter saw a modest increase in total loans, excluding mortgage warehouse lines of credit and acquired loans, registering an increase of 0.48 percent (1.93 percent annualized). This performance was further underscored by year-over-year growth of 6.7 percent.
- Summit's core deposits likewise experienced a modest increase in the first quarter of 2024, up 0.91 percent (3.63 percent annualized) from the linked quarter.
- The Company recorded no provision for credit losses in the first quarter of 2024 compared to
$1.50 million in the linked quarter. - Summit’s efficiency ratio was 48.29 percent compared to 47.33 percent in the linked quarter, indicating optimized use of resources.
Results from Operations
Net interest income totaled
Summit recorded no provision for credit losses in the first quarter of 2024 compared to
Noninterest income, consisting primarily of service fee income from community banking activities and trust and wealth management fees, for first quarter 2024 was
Total noninterest expense decreased to
Salary and benefit expenses of
Acquisition-related expenses were
Other expenses were very controlled at
Summit’s efficiency ratio was 48.29 percent in the first quarter of 2024, up from 48.00 percent for the first quarter of 2023 and marginally higher compared to 47.33 percent in the linked quarter. Non-interest expense to average assets was 1.99 percent in first quarter of 2024 compared to 2.05 percent in the linked quarter and 1.97 percent in the year-ago quarter.
Balance Sheet
As of
Total loans net of unearned fees increased 0.4 percent (1.7 percent annualized) to
Deposits totaled
Total shareholders’ equity was
During the first quarter 2024, TBVPCS increased
Summit had 14,686,738 outstanding common shares at
Asset Quality
The Company recorded net loan recoveries of
Summit recorded no provision for credit losses in the first quarter of 2024. The provision for credit losses was
Summit’s allowance for loan credit losses was
The allowance for loan credit losses stood at 1.33 percent of total loans at
Summit’s allowance for credit losses on unfunded loan commitments was
As of
About the Company
Non-GAAP Financial Measures
In addition to the results of operations presented in accordance with Generally Accepted Accounting Principles (GAAP), Summit’s management uses, and this press release contains or references, certain non-GAAP financial measures, such as tangible common equity/tangible assets; efficiency ratio; return on average tangible equity and return on average tangible common equity. Summit believes these financial measures provide information useful to investors in understanding our operational performance and business and performance trends which facilitate comparisons with the performance of others in the financial services industry. Although Summit believes that these non-GAAP financial measures enhance investors' understanding of Summit’s business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP.
Forward-Looking Statements
This press release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Words such as “expects”, “anticipates”, “believes”, “estimates” and other similar expressions or future or conditional verbs such as “will”, “should”, “would” and “could” are intended to identify such forward-looking statements.
Although we believe the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially. Factors that might cause such a difference include: the effect of the COVID-19 pandemic, including the negative impacts and disruptions on the communities we serve, and the domestic and global economy, which may have an adverse effect on our business; current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates,
Quarterly Performance Summary (unaudited) | |||||||||
Q1 2024 vs Q1 2023 | |||||||||
For the Quarter Ended | Percent | ||||||||
Dollars in thousands | Change | ||||||||
Statements of Income | |||||||||
Interest income | |||||||||
Loans, including fees | $ | 59,249 | $ | 45,485 | 30.3 | % | |||
Securities | 6,141 | 4,819 | 27.4 | % | |||||
Other | 132 | 171 | -22.8 | % | |||||
Total interest income | 65,522 | 50,475 | 29.8 | % | |||||
Interest expense | |||||||||
Deposits | 21,430 | 14,000 | 53.1 | % | |||||
Borrowings | 4,169 | 2,286 | 82.4 | % | |||||
Total interest expense | 25,599 | 16,286 | 57.2 | % | |||||
Net interest income | 39,923 | 34,189 | 16.8 | % | |||||
Provision for credit losses | - | 1,500 | -100.0 | % | |||||
Net interest income after provision | |||||||||
for credit losses | 39,923 | 32,689 | 22.1 | % | |||||
Noninterest income | |||||||||
Trust and wealth management fees | 847 | 811 | 4.4 | % | |||||
Mortgage origination revenue | 154 | 171 | -9.9 | % | |||||
Service charges on deposit accounts | 1,723 | 1,392 | 23.8 | % | |||||
Bank card revenue | 1,833 | 1,568 | 16.9 | % | |||||
Net gains on equity investments | 40 | 45 | -11.1 | % | |||||
Net realized losses on debt securities | (94 | ) | (59 | ) | 59.3 | % | |||
Bank owned life insurance and annuity income | 463 | 336 | 37.8 | % | |||||
Other income | 112 | 122 | -8.2 | % | |||||
Total noninterest income | 5,078 | 4,386 | 15.8 | % | |||||
Noninterest expense | |||||||||
Salaries and employee benefits | 12,058 | 10,807 | 11.6 | % | |||||
Net occupancy expense | 1,695 | 1,333 | 27.2 | % | |||||
Equipment expense | 2,508 | 2,030 | 23.5 | % | |||||
Professional fees | 385 | 376 | 2.4 | % | |||||
Advertising and public relations | 272 | 170 | 60.0 | % | |||||
Amortization of intangibles | 987 | 343 | 187.8 | % | |||||
717 | 330 | 117.3 | % | ||||||
Bank card expense | 832 | 696 | 19.5 | % | |||||
Foreclosed properties expense, net of (gains)/losses | 12 | 15 | -20.0 | % | |||||
Acquisition-related expense | 53 | 331 | -84.0 | % | |||||
Other expenses | 3,439 | 2,968 | 15.9 | % | |||||
Total noninterest expense | 22,958 | 19,399 | 18.3 | % | |||||
Income before income taxes | 22,043 | 17,676 | 24.7 | % | |||||
Income taxes | 4,996 | 3,575 | 39.7 | % | |||||
Net income | 17,047 | 14,101 | 20.9 | % | |||||
Preferred stock dividends | 225 | 225 | n/a | ||||||
Net income applicable to common shares | $ | 16,822 | $ | 13,876 | 21.2 | % | |||
Quarterly Performance Summary (unaudited) | |||||||||
Q1 2024 vs Q1 2023 | |||||||||
For the Quarter Ended | Percent | ||||||||
Change | |||||||||
Per Share Data | |||||||||
Earnings per common share | |||||||||
Basic | $ | 1.15 | $ | 1.09 | 5.5 | % | |||
Diluted | $ | 1.14 | $ | 1.08 | 5.6 | % | |||
Cash dividends per common share | $ | 0.22 | $ | 0.20 | 10.0 | % | |||
Common stock dividend payout ratio | 19.0 | % | 18.1 | % | 5.0 | % | |||
Average common shares outstanding | |||||||||
Basic | 14,683,596 | 12,783,851 | 14.9 | % | |||||
Diluted | 14,750,052 | 12,830,102 | 15.0 | % | |||||
Common shares outstanding at period end | 14,686,738 | 12,786,404 | 14.9 | % | |||||
Performance Ratios | |||||||||
Return on average equity | 15.37 | % | 15.55 | % | -1.2 | % | |||
Return on average tangible equity (C) | 19.27 | % | 19.10 | % | 0.9 | % | |||
Return on average tangible common equity (D) | 20.08 | % | 20.10 | % | -0.1 | % | |||
Return on average assets | 1.47 | % | 1.43 | % | 2.8 | % | |||
Net interest margin (A) | 3.75 | % | 3.83 | % | -2.1 | % | |||
Efficiency ratio (B) | 48.29 | % | 48.00 | % | 0.6 | % | |||
NOTES (A) – Presented on a tax-equivalent basis assuming a federal tax rate of 21%. (B) – Non-GAAP financial measure computed on a tax equivalent basis excluding acquisition-related expenses, gains/losses on sales of assets, write-downs of OREO properties to fair value and amortization of intangibles. (C) – Non-GAAP financial measure that equals: (Net income + Amortization of intangibles [after-tax]) / (Average shareholders’ equity – Average intangible assets). (D) – Non-GAAP financial measure that equals: (Net income + Amortization of intangibles [after-tax]) / (Average common shareholders’ equity – Average intangible assets). | |||||||||
Five Quarter Performance Summary (unaudited) | ||||||||||||||||
For the Quarter Ended | ||||||||||||||||
Dollars in thousands | ||||||||||||||||
Statements of Income | ||||||||||||||||
Interest income | ||||||||||||||||
Loans, including fees | $ | 59,249 | $ | 59,856 | $ | 58,102 | $ | 54,413 | $ | 45,485 | ||||||
Securities | 6,141 | 6,538 | 6,357 | 6,247 | 4,819 | |||||||||||
Other | 132 | 122 | 235 | 203 | 171 | |||||||||||
Total interest income | 65,522 | 66,516 | 64,694 | 60,863 | 50,475 | |||||||||||
Interest expense | ||||||||||||||||
Deposits | 21,430 | 21,417 | 19,924 | 17,851 | 14,000 | |||||||||||
Borrowings | 4,169 | 4,306 | 3,497 | 2,699 | 2,286 | |||||||||||
Total interest expense | 25,599 | 25,723 | 23,421 | 20,550 | 16,286 | |||||||||||
Net interest income | 39,923 | 40,793 | 41,273 | 40,313 | 34,189 | |||||||||||
Provision for credit losses | - | 1,500 | 1,250 | 8,000 | 1,500 | |||||||||||
Net interest income after provision | ||||||||||||||||
for credit losses | 39,923 | 39,293 | 40,023 | 32,313 | 32,689 | |||||||||||
Noninterest income | ||||||||||||||||
Trust and wealth management fees | 847 | 952 | 819 | 854 | 811 | |||||||||||
Mortgage origination revenue | 154 | 65 | 172 | 169 | 171 | |||||||||||
Service charges on deposit accounts | 1,723 | 1,866 | 1,775 | 1,943 | 1,392 | |||||||||||
Bank card revenue | 1,833 | 1,837 | 1,907 | 1,987 | 1,568 | |||||||||||
Net gains on equity investments | 40 | 365 | 180 | 150 | 45 | |||||||||||
Net realized gains/(losses) on debt securities | (94 | ) | 15 | (12 | ) | (211 | ) | (59 | ) | |||||||
Bank owned life insurance and annuity income | 463 | 499 | 311 | 431 | 336 | |||||||||||
Other income | 112 | 202 | 113 | 100 | 122 | |||||||||||
Total noninterest income | 5,078 | 5,801 | 5,265 | 5,423 | 4,386 | |||||||||||
Noninterest expense | ||||||||||||||||
Salaries and employee benefits | 12,058 | 11,374 | 11,959 | 12,156 | 10,807 | |||||||||||
Net occupancy expense | 1,695 | 1,554 | 1,436 | 1,528 | 1,333 | |||||||||||
Equipment expense | 2,508 | 2,342 | 2,361 | 2,361 | 2,030 | |||||||||||
Professional fees | 385 | 529 | 400 | 471 | 376 | |||||||||||
Advertising and public relations | 272 | 432 | 247 | 264 | 170 | |||||||||||
Amortization of intangibles | 987 | 995 | 998 | 999 | 343 | |||||||||||
717 | 670 | 716 | 742 | 330 | ||||||||||||
Bank card expense | 832 | 809 | 972 | 951 | 696 | |||||||||||
Foreclosed properties expense, net of (gains)/losses | 12 | 16 | 10 | 48 | 15 | |||||||||||
Acquisition-related expenses | 53 | 839 | 1,110 | 4,163 | 331 | |||||||||||
Other expenses | 3,439 | 4,347 | 3,953 | 3,641 | 2,968 | |||||||||||
Total noninterest expense | 22,958 | 23,907 | 24,162 | 27,324 | 19,399 | |||||||||||
Income before income taxes | 22,043 | 21,187 | 21,126 | 10,412 | 17,676 | |||||||||||
Income tax expense | 4,996 | 4,590 | 4,794 | 2,203 | 3,575 | |||||||||||
Net income | 17,047 | 16,597 | 16,332 | 8,209 | 14,101 | |||||||||||
Preferred stock dividends | 225 | 225 | 225 | 225 | 225 | |||||||||||
Net income applicable to common shares | $ | 16,822 | $ | 16,372 | $ | 16,107 | $ | 7,984 | $ | 13,876 | ||||||
Five Quarter Performance Summary (unaudited) | |||||||||||||||||
For the Quarter Ended | |||||||||||||||||
Per Share Data | |||||||||||||||||
Earnings per common share | |||||||||||||||||
Basic | $ | 1.15 | $ | 1.12 | $ | 1.10 | $ | 0.54 | $ | 1.09 | |||||||
Diluted | $ | 1.14 | $ | 1.11 | $ | 1.09 | $ | 0.54 | $ | 1.08 | |||||||
Cash dividends per common share | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.20 | $ | 0.20 | |||||||
Common stock dividend payout ratio | 19.0 | % | 19.5 | % | 19.8 | % | 36.7 | % | 18.1 | % | |||||||
Average common shares outstanding | |||||||||||||||||
Basic | 14,683,596 | 14,676,383 | 14,672,176 | 14,668,923 | 12,783,851 | ||||||||||||
Diluted | 14,750,052 | 14,718,790 | 14,714,211 | 14,703,636 | 12,830,102 | ||||||||||||
Common shares outstanding at period end | 14,686,738 | 14,683,457 | 14,674,852 | 14,672,147 | 12,786,404 | ||||||||||||
Performance Ratios | |||||||||||||||||
Return on average equity | 15.37 | % | 15.74 | % | 15.66 | % | 7.99 | % | 15.55 | % | |||||||
Return on average tangible equity (C) | 19.27 | % | 20.01 | % | 20.03 | % | 10.86 | % | 19.10 | % | |||||||
Return on average tangible common equity (D) | 20.08 | % | 20.91 | % | 20.95 | % | 11.37 | % | 20.10 | % | |||||||
Return on average assets | 1.47 | % | 1.42 | % | 1.42 | % | 0.73 | % | 1.43 | % | |||||||
Net interest margin (A) | 3.75 | % | 3.76 | % | 3.88 | % | 3.89 | % | 3.83 | % | |||||||
Efficiency ratio (B) | 48.29 | % | 47.33 | % | 47.15 | % | 47.90 | % | 48.00 | % | |||||||
NOTES (A) – Presented on a tax-equivalent basis assuming a federal tax rate of 21%. (B) – Non-GAAP financial measure computed on a tax equivalent basis excluding acquisition-related expenses, gains/losses on sales of assets, write-downs of OREO properties to fair value and amortization of intangibles. (C) – Non-GAAP financial measure that equals: (Net income + Amortization of intangibles [after-tax]) / (Average shareholders’ equity – Average intangible assets). (D) – Non-GAAP financial measure that equals: (Net income applicable to common shares + Amortization of intangibles [after-tax]) / (Average common shareholders’ equity – Average intangible assets). | |||||||||||||||||
Selected Balance Sheet Data (unaudited) | ||||||||||||||||
Dollars in thousands, except per share amounts | ||||||||||||||||
Assets | ||||||||||||||||
Cash and due from banks | $ | 23,706 | $ | 21,834 | $ | 23,159 | $ | 23,341 | $ | 16,488 | ||||||
Interest bearing deposits other banks | 31,950 | 30,398 | 36,398 | 39,902 | 54,328 | |||||||||||
Debt securities, available for sale | 490,271 | 502,762 | 511,403 | 512,038 | 431,933 | |||||||||||
Debt securities, held to maturity | 93,737 | 94,227 | 94,715 | 95,200 | 95,682 | |||||||||||
Equity investments | 11,571 | 10,958 | 31,241 | 30,818 | 29,867 | |||||||||||
Other investments | 21,842 | 21,130 | 19,579 | 16,014 | 12,696 | |||||||||||
Loans, net | 3,647,810 | 3,633,522 | 3,551,686 | 3,506,880 | 3,059,099 | |||||||||||
Property held for sale | 3,432 | 3,729 | 4,505 | 4,742 | 5,128 | |||||||||||
Premises and equipment, net | 62,293 | 63,038 | 62,721 | 60,967 | 54,491 | |||||||||||
73,443 | 74,430 | 75,425 | 76,423 | 61,807 | ||||||||||||
Cash surrender value of life insurance policies and annuities | 86,230 | 85,679 | 85,076 | 84,790 | 72,019 | |||||||||||
Derivative financial instruments | 36,803 | 33,145 | 44,527 | 39,951 | 34,758 | |||||||||||
Other assets | 59,796 | 59,470 | 63,773 | 61,204 | 49,111 | |||||||||||
Total assets | $ | 4,642,884 | $ | 4,634,322 | $ | 4,604,208 | $ | 4,552,270 | $ | 3,977,407 | ||||||
Liabilities and Shareholders' Equity | ||||||||||||||||
Deposits | $ | 3,748,415 | $ | 3,715,148 | $ | 3,754,495 | $ | 3,735,034 | $ | 3,299,846 | ||||||
Short-term borrowings | 262,359 | 302,957 | 258,054 | 232,150 | 140,150 | |||||||||||
Long-term borrowings and | ||||||||||||||||
subordinated debentures, net | 124,123 | 124,008 | 123,892 | 123,776 | 123,660 | |||||||||||
Other liabilities | 53,706 | 52,001 | 51,315 | 48,136 | 44,205 | |||||||||||
Total liabilities | 4,188,603 | 4,194,114 | 4,187,756 | 4,139,096 | 3,607,861 | |||||||||||
Preferred stock and related surplus | 14,920 | 14,920 | 14,920 | 14,920 | 14,920 | |||||||||||
Common stock and related surplus | 130,235 | 129,990 | 130,508 | 130,227 | 90,939 | |||||||||||
Retained earnings | 316,375 | 302,783 | 289,641 | 276,762 | 271,712 | |||||||||||
Accumulated other comprehensive loss | (7,249 | ) | (7,485 | ) | (18,617 | ) | (8,735 | ) | (8,025 | ) | ||||||
Total shareholders' equity | 454,281 | 440,208 | 416,452 | 413,174 | 369,546 | |||||||||||
Total liabilities and shareholders' equity | $ | 4,642,884 | $ | 4,634,322 | $ | 4,604,208 | $ | 4,552,270 | $ | 3,977,407 | ||||||
Book value per common share | $ | 29.92 | $ | 28.96 | $ | 27.36 | $ | 27.14 | $ | 27.73 | ||||||
Tangible book value per common share (A) | $ | 24.91 | $ | 23.89 | $ | 22.22 | $ | 21.93 | $ | 22.90 | ||||||
Tangible common equity to tangible assets (B) | 8.0 | % | 7.7 | % | 7.2 | % | 7.2 | % | 7.5 | % | ||||||
NOTES (A) – Tangible book value per share = (Common stock and related surplus plus Retained earnings plus Accumulated other comprehensive income/loss – Intangible assets) / Common shares outstanding. (B) – Tangible common equity to tangible assets = (Common stock and related surplus plus Retained earnings plus Accumulated other comprehensive income/loss – Intangible assets) / (Total assets – Intangible assets). | ||||||||||||||||
Loan Composition (unaudited) | ||||||||||||||||
Dollars in thousands | ||||||||||||||||
Commercial | $ | 533,214 | $ | 503,842 | $ | 511,951 | $ | 511,457 | $ | 498,268 | ||||||
Mortgage warehouse lines | 108,858 | 108,848 | 114,734 | 118,785 | 86,240 | |||||||||||
Commercial real estate | ||||||||||||||||
Owner occupied | 569,407 | 545,108 | 547,886 | 566,447 | 469,560 | |||||||||||
Non-owner occupied | 1,280,948 | 1,254,337 | 1,217,029 | 1,193,927 | 1,036,358 | |||||||||||
Construction and development | ||||||||||||||||
Land and development | 105,425 | 145,258 | 114,354 | 117,371 | 102,351 | |||||||||||
Construction | 341,727 | 374,026 | 349,049 | 309,709 | 290,556 | |||||||||||
Residential real estate | ||||||||||||||||
Conventional | 507,599 | 505,398 | 497,076 | 483,998 | 395,312 | |||||||||||
Jumbo | 123,132 | 116,614 | 113,837 | 117,219 | 111,475 | |||||||||||
Home equity | 80,027 | 81,126 | 81,967 | 86,050 | 70,167 | |||||||||||
Consumer | 43,107 | 43,756 | 44,288 | 44,429 | 36,531 | |||||||||||
Other | 3,598 | 3,299 | 6,748 | 3,169 | 3,117 | |||||||||||
Total loans, net of unearned fees | 3,697,042 | 3,681,612 | 3,598,919 | 3,552,561 | 3,099,935 | |||||||||||
Less allowance for loan credit losses | 49,232 | 48,090 | 47,233 | 45,681 | 40,836 | |||||||||||
Loans, net | $ | 3,647,810 | $ | 3,633,522 | $ | 3,551,686 | $ | 3,506,880 | $ | 3,059,099 | ||||||
Unfunded loan commitments | $ | 911,132 | $ | 950,001 | $ | 943,508 | $ | 957,278 | $ | 907,757 | ||||||
Deposit Composition (unaudited) | ||||||||||||||||
Dollars in thousands | ||||||||||||||||
Core deposits | ||||||||||||||||
Non-interest bearing checking | $ | 605,509 | $ | 593,576 | $ | 630,055 | $ | 679,139 | $ | 552,716 | ||||||
Interest bearing checking | 2,145,824 | 2,164,522 | 2,144,737 | 2,024,341 | 1,886,011 | |||||||||||
Savings | 438,451 | 450,526 | 477,348 | 512,129 | 462,631 | |||||||||||
Time deposits | 525,932 | 473,687 | 469,530 | 465,026 | 327,037 | |||||||||||
Total core deposits | 3,715,716 | 3,682,311 | 3,721,670 | 3,680,635 | 3,228,395 | |||||||||||
Brokered time deposits | 32,699 | 32,837 | 32,825 | 54,399 | 71,451 | |||||||||||
Total deposits | $ | 3,748,415 | $ | 3,715,148 | $ | 3,754,495 | $ | 3,735,034 | $ | 3,299,846 | ||||||
Estimated uninsured deposits (A) | $ | 1,288,845 | $ | 1,291,467 | $ | 1,283,610 | $ | 1,189,908 | $ | 933,703 | ||||||
(A) - Excludes uninsured public funds otherwise secured or collateralized as required by law. | ||||||||||||||||
Regulatory Capital Ratios (unaudited) | ||||||||||||
CET1 Risk-based Capital | 9.4 | % | 9.1 | % | 8.9 | % | 8.7 | % | 8.9 | % | ||
Tier 1 Risk-based Capital | 10.2 | % | 9.9 | % | 9.7 | % | 9.5 | % | 9.8 | % | ||
Total Risk-based Capital | 14.0 | % | 13.7 | % | 13.5 | % | 13.3 | % | 14.0 | % | ||
Tier 1 Leverage | 9.0 | % | 8.7 | % | 8.5 | % | 8.4 | % | 8.7 | % | ||
CET1 Risk-based Capital | 12.0 | % | 11.7 | % | 11.6 | % | 11.3 | % | 11.9 | % | ||
Tier 1 Risk-based Capital | 12.0 | % | 11.7 | % | 11.6 | % | 11.3 | % | 11.9 | % | ||
Total Risk-based Capital | 13.3 | % | 12.9 | % | 12.7 | % | 12.5 | % | 13.1 | % | ||
Tier 1 Leverage | 10.6 | % | 10.2 | % | 10.1 | % | 9.9 | % | 10.6 | % | ||
Asset Quality Information (unaudited) | ||||||||||||||||
For the Quarter Ended | ||||||||||||||||
Dollars in thousands | ||||||||||||||||
Gross loan charge-offs | $ | 776 | $ | 444 | $ | 227 | $ | 4,009 | $ | 164 | ||||||
Gross loan recoveries | (869 | ) | (632 | ) | (108 | ) | (118 | ) | (227 | ) | ||||||
Net loan charge-offs (recoveries) | $ | (93 | ) | $ | (188 | ) | $ | 119 | $ | 3,891 | $ | (63 | ) | |||
Net loan charge-offs (recoveries) to average loans (annualized) | -0.01 | % | -0.02 | % | 0.01 | % | 0.44 | % | -0.01 | % | ||||||
Allowance for loan credit losses | $ | 49,232 | $ | 48,090 | $ | 47,233 | $ | 45,681 | $ | 40,836 | ||||||
Allowance for loan credit losses as a percentage | ||||||||||||||||
of period end loans | 1.33 | % | 1.31 | % | 1.31 | % | 1.29 | % | 1.32 | % | ||||||
Allowance for credit losses on | ||||||||||||||||
unfunded loan commitments ("ULC") | $ | 6,692 | $ | 7,742 | $ | 6,912 | $ | 7,332 | $ | 6,572 | ||||||
Allowance for credit losses on ULC | ||||||||||||||||
as a percentage of period end ULC | 0.73 | % | 0.81 | % | 0.73 | % | 0.81 | % | 0.72 | % | ||||||
Nonperforming assets: | ||||||||||||||||
Nonperforming loans | ||||||||||||||||
Commercial | $ | 7,827 | $ | 1,088 | $ | 783 | $ | 254 | $ | 402 | ||||||
Commercial real estate | 8,378 | 5,675 | 6,402 | 5,970 | 1,700 | |||||||||||
Residential construction and development | 891 | 708 | 750 | 772 | 813 | |||||||||||
Residential real estate | 4,436 | 4,831 | 4,787 | 4,298 | 4,322 | |||||||||||
Consumer | 95 | 137 | 124 | 46 | 65 | |||||||||||
Total nonperforming loans | 21,627 | 12,439 | 12,846 | 11,340 | 7,302 | |||||||||||
Foreclosed properties | ||||||||||||||||
Commercial real estate | - | 297 | 297 | 297 | 297 | |||||||||||
Commercial construction and development | 1,253 | 1,253 | 2,187 | 2,187 | 2,187 | |||||||||||
Residential construction and development | 1,924 | 1,924 | 1,924 | 2,161 | 2,293 | |||||||||||
Residential real estate | 255 | 255 | 97 | 97 | 351 | |||||||||||
Total foreclosed properties | 3,432 | 3,729 | 4,505 | 4,742 | 5,128 | |||||||||||
Total nonperforming assets | $ | 25,059 | $ | 16,168 | $ | 17,351 | $ | 16,082 | $ | 12,430 | ||||||
Nonperforming loans to period end loans | 0.58 | % | 0.34 | % | 0.36 | % | 0.32 | % | 0.24 | % | ||||||
Nonperforming assets to period end assets | 0.54 | % | 0.35 | % | 0.38 | % | 0.35 | % | 0.31 | % | ||||||
Loans Past Due 30-89 Days (unaudited) | ||||||||||||||||
Dollars in thousands | ||||||||||||||||
Commercial | $ | 183 | $ | 1,152 | $ | 3,300 | $ | 1,006 | $ | 463 | ||||||
Commercial real estate | 281 | 1,711 | 781 | 513 | 1,000 | |||||||||||
Construction and development | - | 570 | 793 | 161 | 3,459 | |||||||||||
Residential real estate | 4,570 | 6,114 | 4,620 | 4,933 | 2,311 | |||||||||||
Consumer | 379 | 401 | 440 | 389 | 252 | |||||||||||
Other | 10 | 43 | 37 | 17 | 13 | |||||||||||
Total | $ | 5,423 | $ | 9,991 | $ | 9,971 | $ | 7,019 | $ | 7,498 | ||||||
Average Balance Sheet, Interest Earnings & Expenses and Average Rates | |||||||||||||||||||||||||||
Q1 2024 vs Q4 2023 vs Q1 2023 (unaudited) | |||||||||||||||||||||||||||
Q1 2024 | Q4 2023 | Q1 2023 | |||||||||||||||||||||||||
Average | Earnings / | Yield / | Average | Earnings / | Yield / | Average | Earnings / | Yield / | |||||||||||||||||||
Dollars in thousands | Balances | Expense | Rate | Balances | Expense | Rate | Balances | Expense | Rate | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||
Interest earning assets | |||||||||||||||||||||||||||
Loans, net of unearned interest (1) | |||||||||||||||||||||||||||
Taxable | $ | 3,686,788 | $ | 59,204 | 6.46 | % | $ | 3,688,505 | $ | 59,802 | 6.43 | % | $ | 3,087,068 | $ | 45,421 | 5.97 | % | |||||||||
Tax-exempt (2) | 4,427 | 57 | 5.18 | % | 4,357 | 68 | 6.19 | % | 6,086 | 81 | 5.40 | % | |||||||||||||||
Securities | |||||||||||||||||||||||||||
Taxable | 413,656 | 5,025 | 4.89 | % | 410,211 | 5,129 | 4.96 | % | 314,004 | 3,412 | 4.41 | % | |||||||||||||||
Tax-exempt (2) | 184,810 | 1,413 | 3.08 | % | 206,375 | 1,784 | 3.43 | % | 216,430 | 1,781 | 3.34 | % | |||||||||||||||
Interest bearing deposits other banks | |||||||||||||||||||||||||||
and Federal funds sold | 29,287 | 132 | 1.81 | % | 31,053 | 122 | 1.56 | % | 34,330 | 171 | 2.02 | % | |||||||||||||||
Total interest earning assets | 4,318,968 | 65,831 | 6.13 | % | 4,340,501 | 66,905 | 6.12 | % | 3,657,918 | 50,866 | 5.64 | % | |||||||||||||||
Noninterest earning assets | |||||||||||||||||||||||||||
Cash & due from banks | 24,037 | 22,485 | 17,387 | ||||||||||||||||||||||||
Premises & equipment | 62,773 | 63,298 | 54,112 | ||||||||||||||||||||||||
Intangible assets | 74,057 | 75,043 | 62,024 | ||||||||||||||||||||||||
Other assets | 194,694 | 215,821 | 190,533 | ||||||||||||||||||||||||
Allowance for loan credit losses | (48,897 | ) | (47,834 | ) | (39,507 | ) | |||||||||||||||||||||
Total assets | $ | 4,625,632 | $ | 4,669,314 | $ | 3,942,467 | |||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||
Interest bearing liabilities | |||||||||||||||||||||||||||
Interest bearing | |||||||||||||||||||||||||||
demand deposits | 2,126,722 | 15,480 | 2.93 | % | 2,170,953 | 16,196 | 2.96 | % | 1,819,505 | 10,796 | 2.41 | % | |||||||||||||||
Savings deposits | 442,122 | 1,822 | 1.66 | % | 459,277 | 1,986 | 1.72 | % | 480,207 | 1,917 | 1.62 | % | |||||||||||||||
Time deposits | 531,125 | 4,128 | 3.13 | % | 508,383 | 3,235 | 2.52 | % | 389,252 | 1,287 | 1.34 | % | |||||||||||||||
Short-term borrowings | 298,325 | 2,661 | 3.59 | % | 309,657 | 2,791 | 3.58 | % | 166,365 | 824 | 2.01 | % | |||||||||||||||
Long-term borrowings and | |||||||||||||||||||||||||||
subordinated debentures | 124,060 | 1,508 | 4.89 | % | 123,954 | 1,515 | 4.85 | % | 123,599 | 1,462 | 4.80 | % | |||||||||||||||
Total interest bearing liabilities | 3,522,354 | 25,599 | 2.92 | % | 3,572,224 | 25,723 | 2.86 | % | 2,978,928 | 16,286 | 2.22 | % | |||||||||||||||
Noninterest bearing liabilities | |||||||||||||||||||||||||||
Demand deposits | 605,190 | 621,082 | 557,209 | ||||||||||||||||||||||||
Other liabilities | 54,513 | 54,160 | 43,508 | ||||||||||||||||||||||||
Total liabilities | 4,182,057 | 4,247,466 | 3,579,645 | ||||||||||||||||||||||||
Shareholders' equity - preferred | 14,920 | 14,920 | 14,920 | ||||||||||||||||||||||||
Shareholders' equity - common | 428,655 | 406,928 | 347,902 | ||||||||||||||||||||||||
Total liabilities and | |||||||||||||||||||||||||||
shareholders' equity | $ | 4,625,632 | $ | 4,669,314 | $ | 3,942,467 | |||||||||||||||||||||
NET INTEREST EARNINGS | $ | 40,232 | $ | 41,182 | $ | 34,580 | |||||||||||||||||||||
NET INTEREST MARGIN | 3.75 | % | 3.76 | % | 3.83 | % | |||||||||||||||||||||
(1) - For purposes of this table, nonaccrual loans are included in average loan balances. | |||||||||||||||||||||||||||
(2) - Interest income on tax-exempt securities and loans has been adjusted assuming a Federal tax rate of 21% for all periods presented. | |||||||||||||||||||||||||||
The tax equivalent adjustment resulted in an increase in interest income of | |||||||||||||||||||||||||||
Q4 2023 and Q1 2023, respectively. | |||||||||||||||||||||||||||
Contact: | ||
Telephone: | (304) 530-0552 | |
Email: | rtissue@summitfgi.com |
Source:
2024 GlobeNewswire, Inc., source