Dollars in thousands except per share amounts. Certain items in the prior period financial statements have been reclassified to conform with June 30, 2019 presentation.
FENTON, Mich., July 25, 2019 (GLOBE NEWSWIRE) -- Fentura Financial, Inc. FETM announces continued strong earnings with net income of $3,097 and $5,611 for the three and six month periods ended June 30, 2019, respectively.
- 22.99% increase in net income over the second quarter of 2018
- 15.01% increase in gross loans since June 30, 2018
- 12.89% increase in total deposits since June 30, 2018
- 20.28% increase in tangible book value per share since June 30, 2018
Ronald L. Justice, President and CEO said, "I am pleased to report another quarter of strong earnings. This continued growth emphasizes our team's ability to execute our community focused growth strategy. I continue to be extremely proud of our team and their hard work and dedication towards expanding in the communities we serve."
Following is a discussion and detailed analysis as of, and for the quarter ended, June 30, 2019. At the end of this document is a list of abbreviations and acronyms.
Results of Operations
The following table outlines the Corporation's QTD results of operations and provides certain performance measures as of, and for the three month periods ended:
| 6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 6/30/2018 | |||||||||||||||||||||||||
| INCOME STATEMENT DATA | |||||||||||||||||||||||||||||
| Interest income | $ | 10,788 | $ | 10,437 | $ | 9,931 | $ | 9,311 | $ | 8,729 | |||||||||||||||||||
| Interest expense | 2,195 | 2,090 | 1,926 | 1,638 | 1,232 | ||||||||||||||||||||||||
| Net interest income | 8,593 | 8,347 | 8,005 | 7,673 | 7,497 | ||||||||||||||||||||||||
| Provision for loan losses | 264 | 213 | 290 | 191 | 301 | ||||||||||||||||||||||||
| Noninterest income | 2,250 | 1,522 | 1,703 | 2,760 | 2,013 | ||||||||||||||||||||||||
| Noninterest expenses | 6,691 | 6,509 | 6,907 | 6,075 | 6,049 | ||||||||||||||||||||||||
| Federal income tax expense | 791 | 633 | 502 | 654 | 642 | ||||||||||||||||||||||||
| Net income | $ | 3,097 | $ | 2,514 | $ | 2,009 | $ | 3,513 | $ | 2,518 | |||||||||||||||||||
| PER SHARE | |||||||||||||||||||||||||||||
| Earnings | $ | 0.67 | $ | 0.54 | $ | 0.46 | $ | 0.96 | $ | 0.69 | |||||||||||||||||||
| Dividends | $ | 0.07 | $ | 0.07 | $ | 0.06 | $ | 0.06 | $ | 0.06 | |||||||||||||||||||
| Tangible book value(1) | $ | 20.28 | $ | 19.58 | $ | 19.01 | $ | 17.75 | $ | 16.86 | |||||||||||||||||||
| Quoted market value | |||||||||||||||||||||||||||||
| High | $ | 20.90 | $ | 21.00 | $ | 22.02 | $ | 22.50 | $ | 21.15 | |||||||||||||||||||
| Low | $ | 20.45 | $ | 20.05 | $ | 20.94 | $ | 20.60 | $ | 19.32 | |||||||||||||||||||
| Close(1) | $ | 20.60 | $ | 20.89 | $ | 21.00 | $ | 21.15 | $ | 21.10 | |||||||||||||||||||
| PERFORMANCE RATIOS | |||||||||||||||||||||||||||||
| Return on average assets | 1.31 | % | 1.09 | % | 0.87 | % | 1.61 | % | 1.25 | % | |||||||||||||||||||
| Return on average shareholders' equity | 13.14 | % | 11.09 | % | 9.87 | % | 21.27 | % | 16.20 | % | |||||||||||||||||||
| Return on average tangible shareholders' equity | 14.36 | % | 12.13 | % | 10.96 | % | 24.27 | % | 18.62 | % | |||||||||||||||||||
| Efficiency ratio | 61.71 | % | 65.95 | % | 71.15 | % | 58.23 | % | 63.61 | % | |||||||||||||||||||
| Yield on earning assets (FTE) | 4.81 | % | 4.77 | % | 4.54 | % | 4.53 | % | 4.62 | % | |||||||||||||||||||
| Rate on interest bearing liabilities | 1.46 | % | 1.40 | % | 1.29 | % | 1.15 | % | 0.96 | % | |||||||||||||||||||
| Net interest margin to earning assets (FTE) | 3.83 | % | 3.82 | % | 3.66 | % | 3.73 | % | 3.97 | % | |||||||||||||||||||
| BALANCE SHEET DATA(1) | |||||||||||||||||||||||||||||
| Total investment securities | $ | 73,285 | $ | 82,222 | $ | 94,721 | $ | 79,531 | $ | 49,110 | |||||||||||||||||||
| Gross loans | $ | 813,547 | $ | 809,863 | $ | 772,227 | $ | 728,302 | $ | 707,364 | |||||||||||||||||||
| Total assets | $ | 949,790 | $ | 946,172 | $ | 926,450 | $ | 909,901 | $ | 841,459 | |||||||||||||||||||
| Total deposits | $ | 792,555 | $ | 789,533 | $ | 763,124 | $ | 766,587 | $ | 702,035 | |||||||||||||||||||
| Borrowed funds | $ | 54,000 | $ | 59,000 | $ | 69,000 | $ | 74,000 | $ | 74,000 | |||||||||||||||||||
| Total shareholders' equity | $ | 95,504 | $ | 92,236 | $ | 89,516 | $ | 66,340 | $ | 63,078 | |||||||||||||||||||
| Net loans to total deposits | 102.02 | % | 101.97 | % | 100.60 | % | 94.46 | % | 100.18 | % | |||||||||||||||||||
| Common shares outstanding | 4,653,343 | 4,647,978 | 4,636,455 | 3,645,402 | 3,640,060 | ||||||||||||||||||||||||
| QTD BALANCE SHEET AVERAGES | |||||||||||||||||||||||||||||
| Total assets | $ | 947,095 | $ | 934,078 | $ | 917,242 | $ | 866,253 | $ | 805,794 | |||||||||||||||||||
| Earning assets | $ | 900,738 | $ | 887,974 | $ | 868,498 | $ | 817,110 | $ | 759,746 | |||||||||||||||||||
| Interest bearing liabilities | $ | 603,965 | $ | 604,973 | $ | 592,878 | $ | 565,908 | $ | 514,012 | |||||||||||||||||||
| Total shareholders' equity | $ | 94,519 | $ | 91,964 | $ | 80,781 | $ | 65,541 | $ | 62,333 | |||||||||||||||||||
| Total tangible shareholders' equity | $ | 86,478 | $ | 84,025 | $ | 72,742 | $ | 57,419 | $ | 54,254 | |||||||||||||||||||
| Earned common shares outstanding | 4,641,161 | 4,635,255 | 4,332,665 | 3,643,151 | 3,637,799 | ||||||||||||||||||||||||
| Unvested stock grants | 9,967 | 9,788 | 3,022 | — | — | ||||||||||||||||||||||||
| Total common shares outstanding | 4,651,128 | 4,645,043 | 4,335,687 | 3,643,151 | 3,637,799 | ||||||||||||||||||||||||
| ASSET QUALITY(1) | |||||||||||||||||||||||||||||
| Nonperforming loans to gross loans | 0.13 | % | 0.15 | % | 0.14 | % | 0.09 | % | 0.14 | % | |||||||||||||||||||
| Nonperforming assets to total assets | 0.11 | % | 0.13 | % | 0.12 | % | 0.09 | % | 0.13 | % | |||||||||||||||||||
| ALLL to gross loans | 0.62 | % | 0.59 | % | 0.58 | % | 0.57 | % | 0.57 | % | |||||||||||||||||||
| CAPITAL RATIOS(1) | |||||||||||||||||||||||||||||
| Shareholders' equity to assets | 10.06 | % | 9.75 | % | 9.66 | % | 7.29 | % | 7.50 | % | |||||||||||||||||||
| Tier 1 leverage(2) | 12.47 | % | 12.23 | % | 12.15 | % | 10.22 | % | 10.11 | % | |||||||||||||||||||
| CET1 capital to risk weighted assets(2) | 12.47 | % | 12.23 | % | 12.15 | % | 10.22 | % | 10.11 | % | |||||||||||||||||||
| Tier 1 capital to average assets(2) | 10.28 | % | 10.05 | % | 9.90 | % | 8.48 | % | 8.70 | % | |||||||||||||||||||
| (1)At end of period | |||||||||||||||||||||||||||||
| (2)The State Bank | |||||||||||||||||||||||||||||
The following table outlines the Corporation's YTD results of operations and provides certain performance measures as of, and for the six month periods ended:
| Variance | ||||||||||||||||||||||||
| 6/30/2019 | 6/30/2018 | Amount | % | |||||||||||||||||||||
| INCOME STATEMENT DATA | ||||||||||||||||||||||||
| Interest income | $ | 21,225 | $ | 17,108 | $ | 4,117 | 24.06 | % | ||||||||||||||||
| Interest expense | 4,285 | 2,263 | 2,022 | 89.35 | % | |||||||||||||||||||
| Net interest income | 16,940 | 14,845 | 2,095 | 14.11 | % | |||||||||||||||||||
| Provision for loan losses | 477 | 576 | (99 | ) | (17.19 | )% | ||||||||||||||||||
| Noninterest income | 3,772 | 3,814 | (42 | ) | (1.10 | )% | ||||||||||||||||||
| Noninterest expenses | 13,200 | 12,328 | 872 | 7.07 | % | |||||||||||||||||||
| Federal income tax expense | 1,424 | 1,163 | 261 | 22.44 | % | |||||||||||||||||||
| Net income | $ | 5,611 | $ | 4,592 | $ | 1,019 | 22.19 | % | ||||||||||||||||
| PER SHARE | ||||||||||||||||||||||||
| Earnings | $ | 1.21 | $ | 1.26 | $ | (0.05 | ) | (3.97 | )% | |||||||||||||||
| Dividends | $ | 0.14 | $ | 0.12 | $ | 0.02 | 16.67 | % | ||||||||||||||||
| Tangible book value(1) | $ | 20.28 | $ | 16.86 | $ | 3.42 | 20.28 | % | ||||||||||||||||
| Quoted market value | ||||||||||||||||||||||||
| High | $ | 21.00 | $ | 21.15 | $ | (0.15 | ) | (0.71 | )% | |||||||||||||||
| Low | $ | 20.05 | $ | 18.88 | $ | 1.17 | 6.20 | % | ||||||||||||||||
| Close(1) | $ | 20.60 | $ | 21.10 | $ | (0.50 | ) | (2.37 | )% | |||||||||||||||
| PERFORMANCE RATIOS | ||||||||||||||||||||||||
| Return on average assets | 1.20 | % | 1.16 | % | 0.04 | % | ||||||||||||||||||
| Return on average shareholders' equity | 12.14 | % | 15.13 | % | (2.99 | )% | ||||||||||||||||||
| Return on average tangible shareholders' equity | 13.27 | % | 17.44 | % | (4.17 | )% | ||||||||||||||||||
| Efficiency ratio | 63.73 | % | 66.07 | % | (2.34 | )% | ||||||||||||||||||
| Yield on earning assets (FTE) | 4.79 | % | 4.61 | % | 0.18 | % | ||||||||||||||||||
| Rate on interest bearing liabilities | 1.43 | % | 0.90 | % | 0.53 | % | ||||||||||||||||||
| Net interest margin to earning assets (FTE) | 3.83 | % | 4.00 | % | (0.17 | )% | ||||||||||||||||||
| BALANCE SHEET DATA(1) | ||||||||||||||||||||||||
| Total investment securities | $ | 73,285 | $ | 49,110 | $ | 24,175 | 49.23 | % | ||||||||||||||||
| Gross loans | $ | 813,547 | $ | 707,364 | $ | 106,183 | 15.01 | % | ||||||||||||||||
| Total assets | $ | 949,790 | $ | 841,459 | $ | 108,331 | 12.87 | % | ||||||||||||||||
| Total deposits | $ | 792,555 | $ | 702,035 | $ | 90,520 | 12.89 | % | ||||||||||||||||
| Borrowed funds | $ | 54,000 | $ | 74,000 | $ | (20,000 | ) | (27.03 | )% | |||||||||||||||
| Total shareholders' equity | $ | 95,504 | $ | 63,078 | $ | 32,426 | 51.41 | % | ||||||||||||||||
| Net loans to total deposits | 102.02 | % | 100.18 | % | 1.84 | % | ||||||||||||||||||
| Common shares outstanding | 4,653,343 | 3,640,060 | 1,013,283 | 27.84 | % | |||||||||||||||||||
| YTD BALANCE SHEET AVERAGES | ||||||||||||||||||||||||
| Total assets | $ | 940,585 | $ | 797,594 | $ | 142,991 | 17.93 | % | ||||||||||||||||
| Earning assets | $ | 894,357 | $ | 749,755 | $ | 144,602 | 19.29 | % | ||||||||||||||||
| Interest bearing liabilities | $ | 604,469 | $ | 509,294 | $ | 95,175 | 18.69 | % | ||||||||||||||||
| Total shareholders' equity | $ | 93,239 | $ | 61,219 | $ | 32,020 | 52.30 | % | ||||||||||||||||
| Total tangible shareholders' equity | $ | 85,249 | $ | 53,106 | $ | 32,143 | 60.53 | % | ||||||||||||||||
| Earned common shares outstanding | 4,638,208 | 3,635,446 | 1,002,762 | 27.58 | % | |||||||||||||||||||
| Unvested stock grants | 9,878 | — | 9,878 | N/M | ||||||||||||||||||||
| Total common shares outstanding | 4,648,086 | 3,635,446 | 1,012,640 | 27.85 | % | |||||||||||||||||||
| ASSET QUALITY(1) | ||||||||||||||||||||||||
| Nonperforming loans to gross loans | 0.13 | % | 0.14 | % | (0.01 | )% | ||||||||||||||||||
| Nonperforming assets to total assets | 0.11 | % | 0.13 | % | (0.02 | )% | ||||||||||||||||||
| ALLL to gross loans | 0.62 | % | 0.57 | % | 0.05 | % | ||||||||||||||||||
| CAPITAL RATIOS(1) | ||||||||||||||||||||||||
| Shareholders' equity to assets | 10.06 | % | 7.50 | % | 2.56 | % | ||||||||||||||||||
| Tier 1 leverage(2) | 12.47 | % | 10.11 | % | 2.36 | % | ||||||||||||||||||
| CET1 capital to risk weighted assets(2) | 12.47 | % | 10.11 | % | 2.36 | % | ||||||||||||||||||
| Tier 1 capital to average assets(2) | 10.28 | % | 8.70 | % | 1.58 | % | ||||||||||||||||||
| (1)At end of period | ||||||||||||||||||||||||
| (2)The State Bank | ||||||||||||||||||||||||
Income Statement Breakdown and Analysis
| Quarter to Date | |||||||||||||||||||||||||||||||||||||||||||||||||
| 6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 6/30/2018 | |||||||||||||||||||||||||||||||||||||||||||||
| GAAP net income | $ | 3,097 | $ | 2,514 | $ | 2,009 | $ | 3,513 | $ | 2,518 | |||||||||||||||||||||||||||||||||||||||
| Provision for loan losses (net of tax) | 209 | 168 | 229 | 151 | 238 | ||||||||||||||||||||||||||||||||||||||||||||
| Acquisition related items (net of tax) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Accretion on purchased loans | (145 | ) | (175 | ) | (167 | ) | (116 | ) | (255 | ) | |||||||||||||||||||||||||||||||||||||||
| Amortization of core deposit intangible | 90 | 89 | 107 | 107 | 107 | ||||||||||||||||||||||||||||||||||||||||||||
| Amortization on acquired time deposits | 7 | 7 | 9 | 9 | 9 | ||||||||||||||||||||||||||||||||||||||||||||
| Amortization on purchased MSRs | 3 | 3 | 6 | 6 | 6 | ||||||||||||||||||||||||||||||||||||||||||||
| Total acquisition related items (net of tax) | (45 | ) | (76 | ) | (45 | ) | 6 | (133 | ) | ||||||||||||||||||||||||||||||||||||||||
| Other nonrecurring items (net of tax) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net gain from BOLI death benefit | — | — | — | (932 | ) | — | |||||||||||||||||||||||||||||||||||||||||||
| Total other nonrecurring items (net of tax) | — | — | — | (932 | ) | — | |||||||||||||||||||||||||||||||||||||||||||
| Adjusted net income from operations | $ | 3,261 | $ | 2,606 | $ | 2,193 | $ | 2,738 | $ | 2,623 | |||||||||||||||||||||||||||||||||||||||
| GAAP net interest income | $ | 8,593 | $ | 8,347 | $ | 8,005 | $ | 7,673 | $ | 7,497 | |||||||||||||||||||||||||||||||||||||||
| Accretion on purchased loans | (183 | ) | (222 | ) | (211 | ) | (147 | ) | (323 | ) | |||||||||||||||||||||||||||||||||||||||
| Amortization on acquired time deposits | 9 | 9 | 12 | 12 | 12 | ||||||||||||||||||||||||||||||||||||||||||||
| Adjusted net interest income | $ | 8,419 | $ | 8,134 | $ | 7,806 | $ | 7,538 | $ | 7,186 | |||||||||||||||||||||||||||||||||||||||
| PERFORMANCE RATIOS | |||||||||||||||||||||||||||||||||||||||||||||||||
| Based on adjusted net income from operations | |||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings per share | $ | 0.70 | $ | 0.56 | $ | 0.51 | $ | 0.75 | $ | 0.72 | |||||||||||||||||||||||||||||||||||||||
| Return on average assets | 1.38 | % | 1.13 | % | 0.95 | % | 1.25 | % | 1.31 | % | |||||||||||||||||||||||||||||||||||||||
| Return on average shareholders' equity | 13.84 | % | 11.49 | % | 10.77 | % | 16.57 | % | 16.88 | % | |||||||||||||||||||||||||||||||||||||||
| Return on average tangible shareholders' equity | 15.13 | % | 12.58 | % | 11.96 | % | 18.92 | % | 19.39 | % | |||||||||||||||||||||||||||||||||||||||
| Based on adjusted net interest income | |||||||||||||||||||||||||||||||||||||||||||||||||
| Yield on earning assets (FTE) | 4.73 | % | 4.67 | % | 4.44 | % | 4.46 | % | 4.45 | % | |||||||||||||||||||||||||||||||||||||||
| Rate on interest bearing liabilities | 1.47 | % | 1.41 | % | 1.30 | % | 1.16 | % | 0.97 | % | |||||||||||||||||||||||||||||||||||||||
| Net interest margin to earning assets (FTE) | 3.75 | % | 3.72 | % | 3.57 | % | 3.66 | % | 3.81 | % | |||||||||||||||||||||||||||||||||||||||
| Year to Date June 30 | Variance | |||||||||||||||||||||||||||
| 2019 | 2018 | Amount | % | |||||||||||||||||||||||||
| GAAP net income | $ | 5,611 | $ | 4,592 | $ | 1,019 | 22.19 | % | ||||||||||||||||||||
| Provision for loan losses (net of tax) | 377 | 455 | (78 | ) | (17.14 | )% | ||||||||||||||||||||||
| Acquisition related items (net of tax) | ||||||||||||||||||||||||||||
| Accretion on purchased loans | (320 | ) | (505 | ) | 185 | (36.63 | )% | |||||||||||||||||||||
| Amortization of core deposit intangible | 179 | 214 | (35 | ) | (16.36 | )% | ||||||||||||||||||||||
| Amortization on acquired time deposits | 13 | 18 | (5 | ) | (27.78 | )% | ||||||||||||||||||||||
| Amortization on purchased MSRs | 6 | 12 | (6 | ) | (50.00 | )% | ||||||||||||||||||||||
| Total acquisition related items (net of tax) | (122 | ) | (261 | ) | 139 | (53.26 | )% | |||||||||||||||||||||
| Other nonrecurring items (net of tax) | ||||||||||||||||||||||||||||
| Net gain from BOLI death benefit | — | — | — | N/M | ||||||||||||||||||||||||
| Total other nonrecurring items (net of tax) | — | — | — | N/M | ||||||||||||||||||||||||
| Adjusted net income from operations | $ | 5,866 | $ | 4,786 | 1,080 | 22.57 | % | |||||||||||||||||||||
| GAAP net interest income | $ | 16,940 | $ | 14,845 | $ | 2,095 | 14.11 | % | ||||||||||||||||||||
| Accretion on purchased loans | (405 | ) | (640 | ) | 235 | (36.72 | )% | |||||||||||||||||||||
| Amortization on acquired time deposits | 17 | 23 | (6 | ) | (26.09 | )% | ||||||||||||||||||||||
| Adjusted net interest income | $ | 16,552 | $ | 14,228 | $ | 2,324 | 16.33 | % | ||||||||||||||||||||
| PERFORMANCE RATIOS | ||||||||||||||||||||||||||||
| Based on adjusted net income from operations | ||||||||||||||||||||||||||||
| Earnings per share | $ | 1.26 | $ | 1.32 | $ | (0.06 | ) | (4.55 | )% | |||||||||||||||||||
| Return on average assets | 1.26 | % | 1.21 | % | 0.05 | % | ||||||||||||||||||||||
| Return on average shareholders' equity | 12.69 | % | 15.77 | % | (3.08 | )% | ||||||||||||||||||||||
| Return on average tangible shareholders' equity | 13.88 | % | 18.17 | % | (4.29 | )% | ||||||||||||||||||||||
| Based on adjusted net interest income | ||||||||||||||||||||||||||||
| Yield on earning assets (FTE) | 4.70 | % | 4.44 | % | 0.26 | % | ||||||||||||||||||||||
| Rate on interest bearing liabilities | 1.44 | % | 0.91 | % | 0.53 | % | ||||||||||||||||||||||
| Net interest margin to earning assets (FTE) | 3.74 | % | 3.83 | % | (0.09 | )% | ||||||||||||||||||||||
To effectively compare core operating results from period to period, the impact of the provision for loan losses and acquisition related items have been isolated.
As outlined in the preceding tables, the Corporation has been able to generate strong net income and adjusted net income from operations. The Corporation has also been successful at consistently increasing adjusted net interest income. This increase continues to be primarily driven through increases in loans while maintaining relatively healthy interest margins. Through 2019, the Corporation expects to see a continued increase in net interest income. This increase will primarily be driven by loan growth. The Corporation expects net interest margin to earning assets to approximate current levels due to the current, and anticipated future, interest rate environment.
Average Balances, Interest Rate, and Net Interest Income
The following tables present the daily average amount outstanding for each major category of interest earning assets, non-earning assets, interest bearing liabilities, and noninterest bearing liabilities. These tables also present an analysis of interest income and interest expense for the periods indicated. All interest income is reported on a FTE basis using a federal income tax rate of 21%. Loans in nonaccrual status, for the purpose of the following computations, are included in the average loan balances.
| Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2019 | March 31, 2019 | June 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||
| Tax | Average | Tax | Average | Tax | Average | ||||||||||||||||||||||||||||||||||||||||||
| Average | Equivalent | Yield / | Average | Equivalent | Yield / | Average | Equivalent | Yield / | |||||||||||||||||||||||||||||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||||||||||||||||||||||||
| Interest earning assets | |||||||||||||||||||||||||||||||||||||||||||||||
| Total loans | $ | 805,954 | $ | 10,141 | 5.05 | % | $ | 791,069 | $ | 9,741 | 4.99 | % | $ | 703,967 | $ | 8,433 | 4.80 | % | |||||||||||||||||||||||||||||
| Taxable investment securities (1) | 67,237 | 462 | 2.76 | % | 79,367 | 559 | 2.86 | % | 37,763 | 198 | 2.10 | % | |||||||||||||||||||||||||||||||||||
| Nontaxable investment securities | 9,374 | 70 | 3.00 | % | 10,582 | 76 | 2.91 | % | 11,478 | 72 | 2.52 | % | |||||||||||||||||||||||||||||||||||
| Federal funds sold | 10,195 | 61 | 2.40 | % | 43 | — | — | % | 1,320 | 6 | 1.82 | % | |||||||||||||||||||||||||||||||||||
| Cash | 4,828 | 28 | 2.33 | % | 3,763 | 25 | 2.69 | % | 2,265 | 10 | 1.77 | % | |||||||||||||||||||||||||||||||||||
| FHLB stock | 3,150 | 41 | 5.22 | % | 3,150 | 52 | 6.69 | % | 2,953 | 25 | 3.40 | % | |||||||||||||||||||||||||||||||||||
| Total earning assets | 900,738 | 10,803 | 4.81 | % | 887,974 | 10,453 | 4.77 | % | 759,746 | 8,744 | 4.62 | % | |||||||||||||||||||||||||||||||||||
| Non-earning assets | |||||||||||||||||||||||||||||||||||||||||||||||
| ALLL | (4,822 | ) | (4,591 | ) | (3,783 | ) | |||||||||||||||||||||||||||||||||||||||||
| Fixed assets | 14,837 | 14,818 | 14,538 | ||||||||||||||||||||||||||||||||||||||||||||
| Accrued income and other assets | 36,342 | 35,877 | 35,293 | ||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 947,095 | $ | 934,078 | $ | 805,794 | |||||||||||||||||||||||||||||||||||||||||
| Interest bearing liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest bearing demand deposits | $ | 75,496 | $ | 117 | 0.62 | % | $ | 73,414 | $ | 84 | 0.46 | % | $ | 58,997 | $ | 25 | 0.17 | % | |||||||||||||||||||||||||||||
| Savings deposits | 243,794 | 319 | 0.52 | % | 241,815 | 297 | 0.50 | % | 238,862 | 124 | 0.21 | % | |||||||||||||||||||||||||||||||||||
| Time deposits | 229,863 | 1,319 | 2.30 | % | 225,866 | 1,220 | 2.19 | % | 147,620 | 603 | 1.64 | % | |||||||||||||||||||||||||||||||||||
| Borrowed funds | 54,812 | 440 | 3.22 | % | 63,878 | 489 | 3.10 | % | 68,533 | 480 | 2.81 | % | |||||||||||||||||||||||||||||||||||
| Total interest bearing liabilities | 603,965 | 2,195 | 1.46 | % | 604,973 | 2,090 | 1.40 | % | 514,012 | 1,232 | 0.96 | % | |||||||||||||||||||||||||||||||||||
| Noninterest bearing liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest bearing deposits | 243,010 | 234,268 | 227,459 | ||||||||||||||||||||||||||||||||||||||||||||
| Accrued interest and other liabilities | 5,601 | 2,873 | 1,990 | ||||||||||||||||||||||||||||||||||||||||||||
| Shareholders' equity | 94,519 | 91,964 | 62,333 | ||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 947,095 | $ | 934,078 | $ | 805,794 | |||||||||||||||||||||||||||||||||||||||||
| Net interest income (FTE) | $ | 8,608 | $ | 8,363 | $ | 7,512 | |||||||||||||||||||||||||||||||||||||||||
| Net interest margin to earning assets (FTE) | 3.83 | % | 3.82 | % | 3.97 | % | |||||||||||||||||||||||||||||||||||||||||
(1) Includes taxable AFS securities and equity securities.
| Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2019 | June 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tax | Average | Tax | Average | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average | Equivalent | Yield / | Average | Equivalent | Yield / | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest earning assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total loans | $ | 798,511 | $ | 19,882 | 5.02 | % | $ | 691,280 | $ | 16,471 | 4.80 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Taxable investment securities (1) | 73,303 | 1,021 | 2.81 | % | 38,603 | 391 | 2.04 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Nontaxable investment securities | 9,977 | 146 | 2.95 | % | 12,228 | 153 | 2.52 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Federal funds sold | 5,119 | 61 | 2.40 | % | 2,547 | 19 | 1.50 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Cash | 4,297 | 53 | 2.49 | % | 2,158 | 20 | 1.87 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| FHLB stock | 3,150 | 93 | 5.95 | % | 2,939 | 86 | 5.90 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total earning assets | 894,357 | 21,256 | 4.79 | % | 749,755 | 17,140 | 4.61 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Non-earning assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ALLL | (4,706 | ) | (3,714 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed assets | 14,827 | 14,560 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accrued income and other assets | 36,107 | 36,993 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 940,585 | $ | 797,594 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest bearing liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest bearing demand deposits | $ | 74,454 | $ | 201 | 0.54 | % | $ | 61,861 | $ | 47 | 0.15 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Savings deposits | 242,805 | 616 | 0.51 | % | 241,284 | 247 | 0.21 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Time deposits | 227,865 | 2,539 | 2.25 | % | 148,509 | 1,174 | 1.59 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Borrowed funds | 59,345 | 929 | 3.16 | % | 57,640 | 795 | 2.78 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total interest bearing liabilities | 604,469 | 4,285 | 1.43 | % | 509,294 | 2,263 | 0.90 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest bearing liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest bearing deposits | 238,640 | 224,357 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accrued interest and other liabilities | 4,237 | 2,724 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders' equity | 93,239 | 61,219 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 940,585 | $ | 797,594 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income (FTE) | $ | 16,971 | $ | 14,877 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest margin to earning assets (FTE) | 3.83 | % | 4.00 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Includes taxable AFS securities and equity securities.
Net Interest Income
Net interest income is the amount by which interest income on earning assets exceeds the interest expenses on interest bearing liabilities. Net interest income, which includes loan fees, is influenced by changes in the balance and mix of assets and liabilities and market interest rates. The Corporation exerts some control over these factors; however, FRB monetary policy and competition have a significant impact. For analytical purposes, net interest income is adjusted to a FTE basis by adding the income tax savings from interest on tax exempt loans, and nontaxable investment securities, thus making year to year comparisons more meaningful.
Volume and Rate Variance Analysis
The following table sets forth the effect of volume and rate changes on interest income and expense for the periods indicated. For the purpose of this table, changes in interest due to volume and rate were determined as follows:
| Volume - change in volume multiplied by the previous period's rate. | |||
| Rate - change in the FTE rate multiplied by the previous period's volume. |
The change in interest due to both volume and rate has been allocated to volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each.
| Three Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2019 | June 30, 2019 | June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Compared To | Compared To | Compared To | |||||||||||||||||||||||||||||||||||||||||||||||||||
| March 31, 2019 | June 30, 2018 | June 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Increase (Decrease) Due to | Increase (Decrease) Due to | Increase (Decrease) Due to | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Volume | Rate | Net | Volume | Rate | Net | Volume | Rate | Net | |||||||||||||||||||||||||||||||||||||||||||||
| Changes in interest income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Loans | $ | 244 | $ | 156 | $ | 400 | $ | 1,256 | $ | 452 | $ | 1,708 | $ | 778 | $ | 2,633 | $ | 3,411 | |||||||||||||||||||||||||||||||||||
| Taxable Investment Securities | (79 | ) | (18 | ) | (97 | ) | 188 | 76 | 264 | 186 | 444 | 630 | |||||||||||||||||||||||||||||||||||||||||
| Nontaxable Investment Securities | (20 | ) | 14 | (6 | ) | (55 | ) | 53 | (2 | ) | 52 | (59 | ) | (7 | ) | ||||||||||||||||||||||||||||||||||||||
| Fed Funds Sold | — | 61 | 61 | 52 | 3 | 55 | 16 | 26 | 42 | ||||||||||||||||||||||||||||||||||||||||||||
| Cash | 21 | (18 | ) | 3 | 14 | 4 | 18 | 8 | 25 | 33 | |||||||||||||||||||||||||||||||||||||||||||
| FHLB Stock | — | (11 | ) | (11 | ) | 2 | 14 | 16 | 1 | 6 | 7 | ||||||||||||||||||||||||||||||||||||||||||
| Total changes in interest income | 166 | 184 | 350 | 1,457 | 602 | 2,059 | 1,041 | 3,075 | 4,116 | ||||||||||||||||||||||||||||||||||||||||||||
| Changes in interest expense | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Bearing Demand Deposits | 3 | 30 | 33 | 9 | 83 | 92 | 11 | 143 | 154 | ||||||||||||||||||||||||||||||||||||||||||||
| Savings Deposits | 4 | 18 | 22 | 3 | 192 | 195 | 2 | 367 | 369 | ||||||||||||||||||||||||||||||||||||||||||||
| Time Deposits | 26 | 73 | 99 | 416 | 300 | 716 | 768 | 597 | 1,365 | ||||||||||||||||||||||||||||||||||||||||||||
| Borrowed Funds | (159 | ) | 110 | (49 | ) | (348 | ) | 308 | (40 | ) | 24 | 110 | 134 | ||||||||||||||||||||||||||||||||||||||||
| Total changes in interest expense | (126 | ) | 231 | 105 | 80 | 883 | 963 | 805 | 1,217 | 2,022 | |||||||||||||||||||||||||||||||||||||||||||
| Net change in net interest income (FTE) | $ | 292 | $ | (47 | ) | $ | 245 | $ | 1,377 | $ | (281 | ) | $ | 1,096 | $ | 236 | $ | 1,858 | $ | 2,094 | |||||||||||||||||||||||||||||||||
| Average Yield/Rate for the Three Month Periods Ended | ||||||||||||||||||||||||||||||||||||
| 6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 6/30/2018 | ||||||||||||||||||||||||||||||||
| Total earning assets | 4.81 | % | 4.77 | % | 4.54 | % | 4.53 | % | 4.62 | % | ||||||||||||||||||||||||||
| Total interest bearing liabilities | 1.46 | % | 1.40 | % | 1.29 | % | 1.15 | % | 0.96 | % | ||||||||||||||||||||||||||
| Net interest margin to earning assets (FTE) | 3.83 | % | 3.82 | % | 3.66 | % | 3.73 | % | 3.97 | % | ||||||||||||||||||||||||||
| Quarter to Date Net Interest Income (FTE) | ||||||||||||||||||||||||||||||||||||
| 6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 6/30/2018 | ||||||||||||||||||||||||||||||||
| Total interest income (FTE) | 10,803 | 10,453 | 9,947 | 9,327 | 8,744 | |||||||||||||||||||||||||||||||
| Total interest expense | 2,195 | 2,090 | 1,926 | 1,638 | 1,232 | |||||||||||||||||||||||||||||||
| Net interest income (FTE) | $ | 8,608 | $ | 8,363 | $ | 8,021 | $ | 7,689 | $ | 7,512 | ||||||||||||||||||||||||||
As outlined in the previous tables, the Corporation has increased net interest income primarily through increases in volume. Net interest margins are expected to approximate current levels for the remainder of the year.
Noninterest Income
| Quarter to Date | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 6/30/2018 | ||||||||||||||||||||||||||||||||||||||||||||||
| Trust and investment services | $ | 459 | $ | 328 | $ | 372 | $ | 444 | $ | 392 | ||||||||||||||||||||||||||||||||||||||||
| ATM and debit card income | 404 | 360 | 397 | 386 | 388 | |||||||||||||||||||||||||||||||||||||||||||||
| Net gain on sales of mortgage loans | 422 | 195 | 162 | 277 | 187 | |||||||||||||||||||||||||||||||||||||||||||||
| Service charges on deposit accounts | 222 | 234 | 259 | 273 | 253 | |||||||||||||||||||||||||||||||||||||||||||||
| Mortgage servicing fees | 230 | 211 | 208 | 199 | 192 | |||||||||||||||||||||||||||||||||||||||||||||
| Net MSR income | 344 | 8 | 67 | 133 | 79 | |||||||||||||||||||||||||||||||||||||||||||||
| Net gain on sales of commercial loans | — | — | — | — | 368 | |||||||||||||||||||||||||||||||||||||||||||||
| Other income and fees | 169 | 186 | 238 | 1,048 | 154 | |||||||||||||||||||||||||||||||||||||||||||||
| Total noninterest income | $ | 2,250 | $ | 1,522 | $ | 1,703 | $ | 2,760 | $ | 2,013 | ||||||||||||||||||||||||||||||||||||||||
| Year to Date June 30 | Variance | |||||||||||||||||||||||||||
| 2019 | 2018 | Amount | % | |||||||||||||||||||||||||
| Trust and investment services | $ | 787 | $ | 775 | $ | 12 | 1.55 | % | ||||||||||||||||||||
| ATM and debit card income | 764 | 742 | 22 | 2.96 | % | |||||||||||||||||||||||
| Net gain on sales of mortgage loans | 617 | 402 | 215 | 53.48 | % | |||||||||||||||||||||||
| Service charges on deposit accounts | 456 | 512 | (56 | ) | (10.94 | )% | ||||||||||||||||||||||
| Mortgage servicing fees | 441 | 378 | 63 | 16.67 | % | |||||||||||||||||||||||
| Net MSR income | 352 | 163 | 189 | 115.95 | % | |||||||||||||||||||||||
| Net gain on sales of commercial loans | — | 518 | (518 | ) | (100.00 | )% | ||||||||||||||||||||||
| Other income and fees | 355 | 324 | 31 | 9.57 | % | |||||||||||||||||||||||
| Total noninterest income | $ | 3,772 | $ | 3,814 | $ | (42 | ) | (1.10 | )% | |||||||||||||||||||
Trust and investment services include income the Corporation earns from its contracts with customers to manage assets for investment, and/or to transact on their accounts. The wealth management component is strongly correlated to changes in the stock market and as such, can vary from period to period. Trust and investment services income is expected to increase throughout 2019.
ATM and debit card income are fees earned on ATM and debit card transactions. The Corporation expects these fees to increase modestly throughout 2019.
Net gain on sales of mortgage loans represents the income earned on the sale of residential mortgage loans into the secondary market. The first three months of the year are typically the lowest in terms of mortgage activity. In the second quarter of 2019, the Corporation sold approximately $28,000 of residential mortgages that was previously held in its loan portfolio which generated a gain of $25. Excluding the impact of this sale, and excluding the impact of the same type of sale that occurred in the first quarter of 2018, net gains from the sales of mortgage loans increased by $237 when the first six months of 2019 are compared to the same period in 2018 and this trend is expected to continue throughout the remainder of the year.
Service charges on deposit accounts include fees earned from the Corporation's deposit customers for transaction-based, account maintenance and overdraft services. The decrease in service charges on deposit accounts is a result of declines in NSF fees as well as a shift of customer demand toward deposit accounts with no or reduced service charges. Service charges on deposit accounts are expected to approximate current levels throughout the remainder of the year.
Mortgage servicing fees include the fees earned for servicing loans that have been sold into the secondary market. The increase in mortgage servicing fees is directly related to the increases in the size of the serviced portfolio. Mortgage servicing fees are expected to continue to increase throughout the year as mortgage demand remains strong.
Net MSR income is the net of income generated from the capitalization of new mortgage services rights and the amortization of serviced loans as a result of paydowns and payoffs. As noted above, the Corporation sold of pool of residential mortgage loans out of its loan portfolio in the second quarter of 2019. This sale generated $266 of net MSR income from the capitalization of the associated servicing rights. The Corporation expects net MSR income to stabilize and approximate prior trends in future period.
Net gain on sales of commercial loans includes the income earned on the sale of commercial loans into the secondary market. There were no sales for the six months ending June 30, 2019. The Corporation continues to analyze the portfolio for opportunities and will sell commercial loans into the secondary market when deemed financially beneficial.
Other income and fees include other income items, none of which are individually significant. Other income and fees are expected to approximate current levels for the for the remainder of 2019.
Noninterest Expenses
| Quarter to Date | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 6/30/2018 | ||||||||||||||||||||||||||||||||||||||||||||||
| Compensation | $ | 3,749 | $ | 3,630 | $ | 3,429 | $ | 3,359 | $ | 3,316 | ||||||||||||||||||||||||||||||||||||||||
| Furniture and equipment | 525 | 491 | 508 | 486 | 441 | |||||||||||||||||||||||||||||||||||||||||||||
| Professional services | 426 | 458 | 518 | 381 | 388 | |||||||||||||||||||||||||||||||||||||||||||||
| Occupancy | 426 | 437 | 416 | 379 | 417 | |||||||||||||||||||||||||||||||||||||||||||||
| Data Processing | 294 | 265 | 512 | 164 | 143 | |||||||||||||||||||||||||||||||||||||||||||||
| Advertising and promotional | 291 | 163 | 198 | 177 | 219 | |||||||||||||||||||||||||||||||||||||||||||||
| Loan and collection | 119 | 110 | 134 | 135 | 139 | |||||||||||||||||||||||||||||||||||||||||||||
| Amortization of core deposit intangible | 114 | 112 | 136 | 135 | 136 | |||||||||||||||||||||||||||||||||||||||||||||
| Telephone and communication | 108 | 111 | 107 | 106 | 105 | |||||||||||||||||||||||||||||||||||||||||||||
| ATM and debit card | 100 | 95 | 96 | 105 | 98 | |||||||||||||||||||||||||||||||||||||||||||||
| FDIC insurance premiums | 17 | 101 | 120 | 132 | 110 | |||||||||||||||||||||||||||||||||||||||||||||
| Other losses | 4 | 11 | 152 | 2 | (1 | ) | ||||||||||||||||||||||||||||||||||||||||||||
| Other general and administrative | 518 | 525 | 581 | 514 | 538 | |||||||||||||||||||||||||||||||||||||||||||||
| Total noninterest expenses | $ | 6,691 | $ | 6,509 | $ | 6,907 | $ | 6,075 | $ | 6,049 | ||||||||||||||||||||||||||||||||||||||||
| Year to Date June 30 | Variance | |||||||||||||||||||||||||||
| 2019 | 2018 | Amount | % | |||||||||||||||||||||||||
| Compensation | $ | 7,379 | $ | 6,633 | $ | 746 | 11.25 | % | ||||||||||||||||||||
| Furniture and equipment | 1,016 | 904 | 112 | 12.39 | % | |||||||||||||||||||||||
| Professional services | 884 | 888 | (4 | ) | (0.45 | )% | ||||||||||||||||||||||
| Occupancy | 863 | 844 | 19 | 2.25 | % | |||||||||||||||||||||||
| Data Processing | 559 | 292 | 267 | 91.44 | % | |||||||||||||||||||||||
| Advertising and promotional | 454 | 343 | 111 | 32.36 | % | |||||||||||||||||||||||
| Loan and collection | 229 | 268 | (39 | ) | (14.55 | )% | ||||||||||||||||||||||
| Amortization of core deposit intangible | 226 | 271 | (45 | ) | (16.61 | )% | ||||||||||||||||||||||
| Telephone and communication | 219 | 200 | 19 | 9.50 | % | |||||||||||||||||||||||
| ATM and debit card | 195 | 186 | 9 | 4.84 | % | |||||||||||||||||||||||
| FDIC insurance premiums | 118 | 220 | (102 | ) | (46.36 | )% | ||||||||||||||||||||||
| Other losses | 15 | 259 | (244 | ) | (94.21 | )% | ||||||||||||||||||||||
| Other general and administrative | 1,043 | 1,020 | 23 | 2.25 | % | |||||||||||||||||||||||
| Total noninterest expenses | $ | 13,200 | $ | 12,328 | $ | 872 | 7.07 | % | ||||||||||||||||||||
Compensation includes all compensation and benefits paid to the Corporation's employees. Compensation has increased, and is expected to continue to increase, due to the continued growth in size and complexity of the organization.
Furniture and equipment and occupancy expenses primarily consist of depreciation, repairs and maintenance, property taxes, utilities, insurance, and other related items. These expenses are expected to approximate current levels throughout the remainder of the year.
Professional services include expenses relating to third-party professional services. These services include, but are not limited to, regulatory, auditing, consulting, and legal. These expenses are expected to approximate their current levels for the remainder of the year.
Data Processing primarily includes the expenses relating to the Corporation's core data processor. The increase is largely due to the growth in size and complexity of the organization. These expenses are expected to approximate current levels throughout the remainder of the year.
Advertising and promotional includes the Corporation's media costs and any donations or sponsorships made on behalf of the Corporation. The increase in expenses is a direct result of the Corporation enhancing its marketing efforts to attract new and expand existing customer loans and deposit accounts. These expenses are expected to approximate current levels throughout the remainder of the year.
Loan and collection include expenses related to the origination and collection of loans, as well as expenses related to OREO. The Corporation does not expect any significant fluctuations in 2019.
Amortization of core deposit intangible relates to the core deposits acquired from Community Bancorp, Inc. on December 31, 2016 and is expected to approximate current levels for the remainder of 2019.
Telephone and communication include expenses relating to the Corporation's communication systems. These expenses have increased due to the growth in size and complexity of the organization and are expected to approximate current levels for the remainder of the year.
ATM and debit card expenses fluctuate based on customer and non-customer utilization of ATMs and customer debit card volumes. The Corporation expects these fees to increase modestly throughout 2019.
FDIC insurance premiums typically fluctuate based on the size of the Corporation's balance sheet, capital position, overall risk profile, and examination ratings. FDIC insurance premiums are expected to increase over 2019 as a result of anticipated balance sheet growth.
Included in other losses was a $260 one time loan related expense in the first quarter of 2018 and one time losses totaling $132 in the fourth quarter of 2018 related to assets acquired from Community Bancorp, Inc. Excluding these isolated items, other losses have not been significant and management does not anticipate any significant other losses in 2019.
Other general and administrative includes miscellaneous other expense items, none of which are individually significant. These expenses are expected to approximate current levels for the reminder of the year.
Balance Sheet Breakdown and Analysis
| 6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 6/30/2018 | |||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 20,067 | $ | 16,509 | $ | 23,412 | $ | 63,469 | $ | 44,280 | |||||||||||||||||||
| Total investment securities | 73,285 | 82,222 | 94,721 | 79,531 | 49,110 | ||||||||||||||||||||||||
| Loans held for sale | 6,771 | 1,835 | 903 | 2,021 | 4,936 | ||||||||||||||||||||||||
| Gross loans | 813,547 | 809,863 | 772,227 | 728,302 | 707,364 | ||||||||||||||||||||||||
| Less ALLL | 5,014 | 4,745 | 4,488 | 4,146 | 4,033 | ||||||||||||||||||||||||
| Net loans | 808,533 | 805,118 | 767,739 | 724,156 | 703,331 | ||||||||||||||||||||||||
| All other assets | 41,134 | 40,488 | 39,675 | 40,724 | 39,802 | ||||||||||||||||||||||||
| Total assets | $ | 949,790 | $ | 946,172 | $ | 926,450 | $ | 909,901 | $ | 841,459 | |||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||
| Total deposits | $ | 792,555 | $ | 789,533 | $ | 763,124 | $ | 766,587 | $ | 702,035 | |||||||||||||||||||
| Total borrowed funds | 54,000 | 59,000 | 69,000 | 74,000 | 74,000 | ||||||||||||||||||||||||
| Accrued interest and other liabilities | 7,731 | 5,403 | 4,810 | 2,974 | 2,346 | ||||||||||||||||||||||||
| Total liabilities | 854,286 | 853,936 | 836,934 | 843,561 | 778,381 | ||||||||||||||||||||||||
| Total shareholders' equity | 95,504 | 92,236 | 89,516 | 66,340 | 63,078 | ||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 949,790 | $ | 946,172 | $ | 926,450 | $ | 909,901 | $ | 841,459 | |||||||||||||||||||
| 6/30/2019 vs 3/31/2019 | 6/30/2019 vs 6/30/2018 | ||||||||||||||||||||||||
| Variance | Variance | ||||||||||||||||||||||||
| Amount | % | Amount | % | ||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||
| Cash and cash equivalents | $ | 3,558 | 21.55 | % | $ | (24,213 | ) | (54.68 | )% | ||||||||||||||||
| Total investment securities | (8,937 | ) | (10.87 | )% | 24,175 | 49.23 | % | ||||||||||||||||||
| Loans held for sale | 4,936 | 268.99 | % | 1,835 | 37.18 | % | |||||||||||||||||||
| Gross loans | 3,684 | 0.45 | % | 106,183 | 15.01 | % | |||||||||||||||||||
| Less ALLL | 269 | 5.67 | % | 981 | 24.32 | % | |||||||||||||||||||
| Net loans | 3,415 | 0.42 | % | 105,202 | 14.96 | % | |||||||||||||||||||
| All other assets | 646 | 1.60 | % | 1,332 | 3.35 | % | |||||||||||||||||||
| Total assets | $ | 3,618 | 0.38 | % | $ | 108,331 | 12.87 | % | |||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||
| Total deposits | $ | 3,022 | 0.38 | % | $ | 90,520 | 12.89 | % | |||||||||||||||||
| Total borrowed funds | (5,000 | ) | (8.47 | )% | (20,000 | ) | (27.03 | )% | |||||||||||||||||
| Accrued interest and other liabilities | 2,328 | 43.09 | % | 5,385 | 229.54 | % | |||||||||||||||||||
| Total liabilities | 350 | 0.04 | % | 75,905 | 9.75 | % | |||||||||||||||||||
| Total shareholders' equity | 3,268 | 3.54 | % | 32,426 | 51.41 | % | |||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 3,618 | 0.38 | % | $ | 108,331 | 12.87 | % | |||||||||||||||||
Cash and cash equivalents
| 6/30/19 | 3/31/19 | 12/31/18 | 9/30/18 | 6/30/18 | ||||||||||||||||||||||||||||||||||||||
| Cash and due from banks | $ | 17,067 | $ | 16,509 | $ | 19,412 | $ | 21,469 | $ | 24,280 | ||||||||||||||||||||||||||||||||
| Federal funds sold | 3,000 | — | 4,000 | 42,000 | 20,000 | |||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 20,067 | $ | 16,509 | $ | 23,412 | $ | 63,469 | $ | 44,280 | ||||||||||||||||||||||||||||||||
| 6/30/2019 vs 3/31/2019 | 6/30/2019 vs 6/30/2018 | |||||||||||||||||||||||||||||||||||||||||
| Variance | Variance | |||||||||||||||||||||||||||||||||||||||||
| Amount | % | Amount | % | |||||||||||||||||||||||||||||||||||||||
| Cash and due from banks | $ | 558 | 3.38 | % | $ | (7,213 | ) | (29.71 | )% | |||||||||||||||||||||||||||||||||
| Federal funds sold | 3,000 | N/M | (17,000 | ) | (85.00 | )% | ||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 3,558 | 21.55 | % | $ | (24,213 | ) | (54.68 | )% | |||||||||||||||||||||||||||||||||
Cash and cash equivalents fluctuate from period to period based on loan demand and variances in deposit accounts. Cash and cash equivalents are expected to approximate current levels for the foreseeable future.
Total investment securities
| 6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 6/30/2018 | ||||||||||||||||||||||||||||||||||
| AFS | ||||||||||||||||||||||||||||||||||||||
| U.S. Government and federal agency | $ | 33,842 | $ | 38,796 | $ | 57,029 | $ | 49,011 | $ | 20,945 | ||||||||||||||||||||||||||||
| Collateralized mortgage obligations - agencies | 11,856 | 12,516 | 9,833 | 1,662 | 1,789 | |||||||||||||||||||||||||||||||||
| State and municipal | 8,889 | 10,322 | 10,558 | 12,741 | 14,118 | |||||||||||||||||||||||||||||||||
| Certificates of deposit | 7,154 | 8,394 | 8,393 | 7,171 | 3,456 | |||||||||||||||||||||||||||||||||
| Mortgage backed residential | 6,733 | 7,031 | 4,276 | 4,408 | 4,791 | |||||||||||||||||||||||||||||||||
| Unrealized gain/(loss) on AFS securities | 776 | 288 | (235 | ) | (478 | ) | (262 | ) | ||||||||||||||||||||||||||||||
| Total available-for-sale | 69,250 | 77,347 | 89,854 | 74,515 | 44,837 | |||||||||||||||||||||||||||||||||
| HTM State and municipal | 2,104 | 2,965 | 2,971 | 3,728 | 2,985 | |||||||||||||||||||||||||||||||||
| Equity securities | 1,931 | 1,910 | 1,896 | 1,288 | 1,288 | |||||||||||||||||||||||||||||||||
| Total investment securities | 73,285 | 82,222 | 94,721 | 79,531 | 49,110 | |||||||||||||||||||||||||||||||||
| 6/30/2019 vs 3/31/2019 | 6/30/2019 vs 6/30/2018 | |||||||||||||||||||||||||||||||||||||
| Variance | Variance | |||||||||||||||||||||||||||||||||||||
| Amount | % | Amount | % | |||||||||||||||||||||||||||||||||||
| AFS | ||||||||||||||||||||||||||||||||||||||
| U.S. Government and federal agency | $ | (4,954 | ) | (12.77 | )% | $ | 12,897 | 61.58 | % | |||||||||||||||||||||||||||||
| Collateralized mortgage obligations - agencies | (660 | ) | (5.27 | )% | 10,067 | 562.72 | % | |||||||||||||||||||||||||||||||
| State and municipal | (1,433 | ) | (13.88 | )% | (5,229 | ) | (37.04 | )% | ||||||||||||||||||||||||||||||
| Certificates of deposit | (1,240 | ) | (14.77 | )% | 3,698 | 107.00 | % | |||||||||||||||||||||||||||||||
| Mortgage backed residential | (298 | ) | (4.24 | )% | 1,942 | 40.53 | % | |||||||||||||||||||||||||||||||
| Unrealized gain/(loss) on AFS securities | 488 | 169.44 | % | 1,038 | (396.18 | )% | ||||||||||||||||||||||||||||||||
| Total available-for-sale | (8,097 | ) | (10.47 | )% | 24,413 | 54.45 | % | |||||||||||||||||||||||||||||||
| HTM State and municipal | (861 | ) | (29.04 | )% | (881 | ) | (29.51 | )% | ||||||||||||||||||||||||||||||
| Equity securities | 21 | 1.10 | % | 643 | 49.92 | % | ||||||||||||||||||||||||||||||||
| Total investment securities | (8,937 | ) | (10.87 | )% | 24,175 | 49.23 | % | |||||||||||||||||||||||||||||||
During 2018, the Corporation increased total investment securities due to advantageous pricing opportunities. However, since late 2018, yields on bonds that meet the Corporation's investment standards have declined significantly. As such, the Corporation has not replaced maturing investments. Total investment securities are expected to approximate current levels or decline slightly over the remainder of 2019.
Loans held for sale
Loans held for sale represent the balance of loans that have been committed to be sold to the secondary market, but have not yet been delivered. Loans held for sale are expected to approximate current levels for the foreseeable future.
Net loans
| 6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 6/30/2018 | ||||||||||||||||||||||||||||||||||||||
| Commercial real estate | $ | 408,103 | $ | 394,462 | $ | 369,043 | $ | 351,739 | $ | 344,658 | ||||||||||||||||||||||||||||||||
| Residential real estate | 289,944 | 306,466 | 293,271 | 274,035 | 257,776 | |||||||||||||||||||||||||||||||||||||
| Commercial | 63,998 | 56,790 | 56,583 | 48,594 | 49,776 | |||||||||||||||||||||||||||||||||||||
| Home equity | 42,890 | 43,130 | 43,597 | 41,136 | 41,736 | |||||||||||||||||||||||||||||||||||||
| Installment | 8,612 | 9,015 | 9,733 | 12,798 | 13,418 | |||||||||||||||||||||||||||||||||||||
| Gross loans | $ | 813,547 | $ | 809,863 | $ | 772,227 | $ | 728,302 | $ | 707,364 | ||||||||||||||||||||||||||||||||
| 6/30/2019 vs 3/31/2019 | 6/30/2019 vs 6/30/2018 | |||||||||||||||||||||||||||||||||||||||||
| Variance | Variance | |||||||||||||||||||||||||||||||||||||||||
| Amount | % | Amount | % | |||||||||||||||||||||||||||||||||||||||
| Commercial real estate | $ | 13,641 | 3.46 | % | $ | 63,445 | 18.41 | % | ||||||||||||||||||||||||||||||||||
| Residential real estate | (16,522 | ) | (5.39 | )% | 32,168 | 12.48 | % | |||||||||||||||||||||||||||||||||||
| Commercial | 7,208 | 12.69 | % | 14,222 | 28.57 | % | ||||||||||||||||||||||||||||||||||||
| Home equity | (240 | ) | (0.56 | )% | 1,154 | 2.76 | % | |||||||||||||||||||||||||||||||||||
| Installment | (403 | ) | (4.47 | )% | (4,806 | ) | (35.82 | )% | ||||||||||||||||||||||||||||||||||
| Gross loans | $ | 3,684 | 0.45 | % | $ | 106,183 | 15.01 | % | ||||||||||||||||||||||||||||||||||
The following table summarizes the Corporation's current, past due, and nonaccrual loans as of:
| 6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 6/30/2018 | |||||||||||||||||||||||||
| Accruing interest | |||||||||||||||||||||||||||||
| Current | $ | 811,184 | $ | 807,671 | $ | 769,799 | $ | 725,954 | $ | 705,331 | |||||||||||||||||||
| Past due 30-89 days | 1,275 | 1,009 | 1,325 | 1,689 | 1,052 | ||||||||||||||||||||||||
| Past due 90 days or more | 301 | 310 | 191 | 150 | 726 | ||||||||||||||||||||||||
| Total accruing interest | 812,760 | 808,990 | 771,315 | 727,793 | 707,109 | ||||||||||||||||||||||||
| Nonaccrual | 787 | 873 | 912 | 509 | 255 | ||||||||||||||||||||||||
| Total loans | $ | 813,547 | $ | 809,863 | $ | 772,227 | $ | 728,302 | $ | 707,364 | |||||||||||||||||||
| Total loans past due and in nonaccrual status | $ | 2,363 | $ | 2,192 | $ | 2,428 | $ | 2,348 | $ | 2,033 | |||||||||||||||||||
The following table summarizes the Corporation's nonperforming assets as of:
| 6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 6/30/2018 | |||||||||||||||||||||||||
| Nonaccrual loans | $ | 787 | $ | 873 | $ | 912 | $ | 509 | $ | 255 | |||||||||||||||||||
| Accruing loans past due 90 days or more | 301 | 310 | 191 | 150 | 726 | ||||||||||||||||||||||||
| Total nonperforming loans | 1,088 | 1,183 | 1,103 | 659 | 981 | ||||||||||||||||||||||||
| OREO | — | — | 32 | 143 | 92 | ||||||||||||||||||||||||
| Total nonperforming assets | $ | 1,088 | $ | 1,183 | $ | 1,135 | $ | 802 | $ | 1,073 | |||||||||||||||||||
The following table summarizes the Corporation's primary asset quality measures as of:
| 6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 6/30/2018 | |||||||||||||||
| Nonperforming loans to gross loans | 0.13 | % | 0.15 | % | 0.14 | % | 0.09 | % | 0.14 | % | |||||||||
| Nonperforming assets to total assets | 0.11 | % | 0.13 | % | 0.12 | % | 0.09 | % | 0.13 | % | |||||||||
| ALLL to gross loans | 0.62 | % | 0.59 | % | 0.58 | % | 0.57 | % | 0.57 | % | |||||||||
As outlined in the preceding tables, the Corporation has been successful in growing its loan portfolio over the past 12 months with most of the growth coming in the form of commercial, commercial real estate and residential real estate loans. Despite the above peer growth, the Corporation has not relaxed its underwriting standards as evidenced by the low level of nonperforming loans. This comparatively low level of nonperforming loans has also resulted in an ALLL to gross loans at a level below many of the Corporation's peers. While the Corporation's ALLL to gross loans is below its peers, it is important to keep in mind that the the ALLL does not include the net unamortized discount on purchased loans as it is a component of gross loans.
The following table summarizes the balance of net unamortized discounts on purchased loans as of:
| 6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 6/30/2018 | |||||||||||||||||||||||||
| Net unamortized discount on purchased loans | $ | 1,914 | $ | 2,095 | $ | 2,317 | $ | 2,529 | $ | 2,675 | |||||||||||||||||||
All other assets
The following tables outline the composition and changes in other assets as of:
| 6/30/19 | 3/31/19 | 12/31/18 | 9/30/18 | 6/30/18 | ||||||||||||||||||||||||||||||||||||||
| Premises and equipment | $ | 14,792 | $ | 14,838 | $ | 14,761 | $ | 14,644 | $ | 14,701 | ||||||||||||||||||||||||||||||||
| BOLI | 10,181 | 10,070 | 10,007 | 9,959 | 9,935 | |||||||||||||||||||||||||||||||||||||
| MSRs | 3,758 | 3,414 | 3,406 | 3,340 | 3,206 | |||||||||||||||||||||||||||||||||||||
| Accrued interest receivable | 3,350 | 3,298 | 3,020 | 3,082 | 2,463 | |||||||||||||||||||||||||||||||||||||
| Goodwill | 3,219 | 3,219 | 3,219 | 3,219 | 3,219 | |||||||||||||||||||||||||||||||||||||
| FHLB stock | 3,150 | 3,150 | 3,150 | 3,150 | 3,150 | |||||||||||||||||||||||||||||||||||||
| Core deposit intangible | 1,128 | 1,241 | 1,353 | 1,489 | 1,624 | |||||||||||||||||||||||||||||||||||||
| All other assets | 1,556 | 1,258 | 759 | 1,841 | 1,504 | |||||||||||||||||||||||||||||||||||||
| Total deposits | $ | 41,134 | $ | 40,488 | $ | 39,675 | $ | 40,724 | $ | 39,802 | ||||||||||||||||||||||||||||||||
| 6/30/2019 vs 3/31/2019 | 6/30/2019 vs 6/30/2018 | |||||||||||||||||||||||||||||||||||||||||
| Variance | Variance | |||||||||||||||||||||||||||||||||||||||||
| Amount | % | Amount | % | |||||||||||||||||||||||||||||||||||||||
| Premises and equipment | $ | (46 | ) | (0.31 | )% | $ | 91 | 0.62 | % | |||||||||||||||||||||||||||||||||
| BOLI | 111 | 1.10 | % | 246 | 2.48 | % | ||||||||||||||||||||||||||||||||||||
| MSRs | 344 | 10.08 | % | 552 | 17.22 | % | ||||||||||||||||||||||||||||||||||||
| Accrued interest receivable | 52 | 1.58 | % | 887 | 36.01 | % | ||||||||||||||||||||||||||||||||||||
| Goodwill | — | — | % | — | — | % | ||||||||||||||||||||||||||||||||||||
| FHLB stock | — | — | % | — | — | % | ||||||||||||||||||||||||||||||||||||
| Core deposit intangible | (113 | ) | (9.11 | )% | (496 | ) | (30.54 | )% | ||||||||||||||||||||||||||||||||||
| All other assets | 298 | 23.69 | % | 52 | 3.46 | % | ||||||||||||||||||||||||||||||||||||
| Total deposits | $ | 646 | 1.60 | % | $ | 1,332 | 3.35 | % | ||||||||||||||||||||||||||||||||||
All other assets is expected to increase commensurate with the overall growth of the Corporation.
Total deposits
The following tables outline the composition and changes in the deposit portfolio as of:
| 6/30/19 | 3/31/19 | 12/31/18 | 9/30/18 | 6/30/18 | ||||||||||||||||||||||||||||||||||||||
| Demand | $ | 245,703 | $ | 235,305 | $ | 233,954 | $ | 235,208 | $ | 236,899 | ||||||||||||||||||||||||||||||||
| Savings | 232,094 | 230,006 | 223,728 | 221,028 | 218,512 | |||||||||||||||||||||||||||||||||||||
| Money market demand | 69,374 | 61,294 | 61,369 | 60,836 | 53,654 | |||||||||||||||||||||||||||||||||||||
| NOW | 18,017 | 19,358 | 10,234 | 8,952 | 6,346 | |||||||||||||||||||||||||||||||||||||
| Time deposits | 227,367 | 243,570 | 233,839 | 240,563 | 186,624 | |||||||||||||||||||||||||||||||||||||
| Total deposits | $ | 792,555 | $ | 789,533 | $ | 763,124 | $ | 766,587 | $ | 702,035 | ||||||||||||||||||||||||||||||||
| 6/30/2019 vs 3/31/2019 | 6/30/2019 vs 6/30/2018 | |||||||||||||||||||||||||||||||||||||||||
| Variance | Variance | |||||||||||||||||||||||||||||||||||||||||
| Amount | % | Amount | % | |||||||||||||||||||||||||||||||||||||||
| Demand | $ | 10,398 | 4.42 | % | $ | 8,804 | 3.72 | % | ||||||||||||||||||||||||||||||||||
| Savings | 2,088 | 0.91 | % | 13,582 | 6.22 | % | ||||||||||||||||||||||||||||||||||||
| Money market demand | 8,080 | 13.18 | % | 15,720 | 29.30 | % | ||||||||||||||||||||||||||||||||||||
| NOW | (1,341 | ) | (6.93 | )% | 11,671 | 183.91 | % | |||||||||||||||||||||||||||||||||||
| Time deposits | (16,203 | ) | (6.65 | )% | 40,743 | 21.83 | % | |||||||||||||||||||||||||||||||||||
| Total deposits | $ | 3,022 | 0.38 | % | $ | 90,520 | 12.89 | % | ||||||||||||||||||||||||||||||||||
The Corporation has continued its focus of growing non-contractual deposits while supplementing funding with time deposits. On a quarterly average basis, non-interest bearing deposits increased $8,742, or 3.73%, from March 31, 2019. The Corporation has also been able to drive this meaningful increase through enhanced organic growth strategies. The Corporation expects that deposit growth will continue to be strong with the majority of the growth coming in the form of demand and money market accounts.
Total borrowed funds
The following tables outline the composition and changes in borrowed funds as of:
| 6/30/19 | 3/31/19 | 12/31/18 | 9/30/18 | 6/30/18 | ||||||||||||||||||||||||||||||||||||||
| FHLB advances | $ | 40,000 | $ | 40,000 | $ | 55,000 | $ | 60,000 | $ | 60,000 | ||||||||||||||||||||||||||||||||
| Subordinated debentures | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | |||||||||||||||||||||||||||||||||||||
| Federal funds purchased | — | 5,000 | — | — | — | |||||||||||||||||||||||||||||||||||||
| Total borrowed funds | $ | 54,000 | $ | 59,000 | $ | 69,000 | $ | 74,000 | $ | 74,000 | ||||||||||||||||||||||||||||||||
| 6/30/2019 vs 3/31/2019 | 6/30/2019 vs 6/30/2018 | |||||||||||||||||||||||||||||||||||||||||
| Variance | Variance | |||||||||||||||||||||||||||||||||||||||||
| Amount | % | Amount | % | |||||||||||||||||||||||||||||||||||||||
| FHLB advances | $ | — | — | % | $ | (20,000 | ) | (33.33 | )% | |||||||||||||||||||||||||||||||||
| Subordinated debentures | — | — | % | — | — | % | ||||||||||||||||||||||||||||||||||||
| Federal funds purchased | (5,000 | ) | (100.00 | )% | — | N/M | ||||||||||||||||||||||||||||||||||||
| Total borrowed funds | $ | (5,000 | ) | (8.47 | )% | $ | (20,000 | ) | (27.03 | )% | ||||||||||||||||||||||||||||||||
While the Corporation increased its reliance on borrowed funds in 2018 to fund its strong loan demand, borrowed funds have gradually declined in the last five quarters as the Corporation has been able to fund organic growth through increases in deposit accounts. Total borrowed funds are expected to approximate current levels for the remainder of 2019.
Accrued interest and other liabilities
Accrued interest and other liabilities includes accrued interest payable, federal income taxes payable, deferred federal income taxes payable, and all other liabilities (none of which are individually significant). Accrued interest and other liabilities are not expected to fluctuate significantly in future periods. All other assets is expected to increase commensurate with the overall growth of the Corporation.
Total shareholders' equity
Total shareholders' equity includes common stock, retained earnings, and AOCI. During the fourth quarter of 2018, the Corporation increased its capital position through a private placement of common stock to both retail and accredited individual investors. The private placement generated net proceeds of $20,500. These proceeds were used to fund the Corporation's strong organic growth, opportunistic strategic growth, and enhance its capital position. The balance of growth in retained earnings was the result of the Corporation's strong earnings. Total shareholders' equity is expected to continue to grow throughout 2019 through the Corporation's earnings as no significant changes in dividend strategy are anticipated.
Abbreviations and Acronyms
| ABA: American Bankers Association | GAAP: Generally Accepted Accounting Principles |
| ALLL: Allowance for loan and lease losses | HFS: Held-for-sale |
| AFS: Available-for-sale | HTM: Held-to-maturity |
| AOCI: Accumulated other comprehensive income | IRA: Individual retirement account |
| ASC: Accounting Standards Codification | MSR: Mortgage servicing rights |
| ASU: Accounting Standards Update | NASDAQ: National Association of Securities Dealers Automated Quotations |
| ATM: Automated teller machine | N/M: Not meaningful |
| BOLI: Bank owned life insurance | NOW: Negotiable order of withdrawal |
| CET1: Common equity tier 1 | NSF: Non-sufficient funds |
| FDIC: Federal Deposit Insurance Corporation | OREO: Other real estate owned |
| FHLB: Federal Home Loan Bank | QTD: Quarter to date |
| FRB: Federal Reserve Bank | SBA: Small Business Association |
| FTE: Fully taxable equivalent | YTD: Year to date |
About Fentura Financial, Inc. and The State Bank
Fentura Financial, Inc. is the holding company for The State Bank. It was formed in 1987 and is traded on the OTCQX exchange under the symbol FETM, and was recognized as one of the Top 50 performing stocks in 2016 and 2018 on that exchange.
The State Bank is a full-service, 5-Star Bauer Financial rated commercial, retail and trust bank headquartered in Fenton, Michigan. It currently operates 15 full-service branches in Genesee, Livingston, Oakland, Saginaw, and Shiawassee Counties and a loan production office in Saginaw County. The State Bank was ranked #20 by S&P Global in terms of 2018 performance for banks under $2 billion in assets. The State Bank's commercial department provides a complete array of products including lines of credit, term loans, commercial mortgages, SBA loans and a full-suite of cash management products. The retail department offers personal checking, savings, time and IRA deposit accounts and a wide array of loan products including home equity, auto and personal loans. The residential loan department offers construction, purchase and refinance residential mortgage loans. The wealth management department offers a full-service suite of trust and portfolio management services. The aim of The State Bank is to become and remain "Your Financial Partner for Life." More information can be found at www.thestatebank.com or www.fentura.com.
Cautionary Statement: This press release contains certain forward-looking statements that involve risks and uncertainties. Forward-looking statements include, but are not limited to, statements concerning future growth in earning assets and net income. Such statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, economic, competitive, governmental and technological factors affecting the Company's operations, markets, products, services, interest rates and fees for services. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
| Contacts: | Ronald L. Justice | Aaron D. Wirsing | ||||
| President & CEO | Chief Financial Officer | |||||
| Fentura Financial, Inc. | Fentura Financial, Inc. | |||||
| 810.714.3902 | 810.714.3925 | |||||
| ronj@thestatebank.com | aaronw@thestatebank.com |
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
