CBB Bancorp, Inc. ("CBB" or the "Company') CBBI, the holding company of Commonwealth Business Bank (the "Bank"), announced today net income for third quarter 2020 of $2.9 million, or $0.28 per diluted share, an increase of 75.7% compared to $1.7 million, or $0.16 per diluted share, in the prior quarter and a decrease of 15.0% compared to $3.4 million, or $0.33 per share, in the same period last year.
"We are operating in unprecedented times, and I am proud of our team working together with our customers to get through this COVID-19 pandemic and economic crisis," says Ms. Kim, President and Chief Executive Officer. "We are seeing positive trends as we navigate through the COVID-19 pandemic. The initial three-month loan deferment totaled approximately $286.9 million or 26.9% of total loan portfolio. However, the second round of loan payment deferments as of September 30, 2020, amounted to approximately $21.1 million or 2.1% of total loan portfolio. We will continue to work with our customers through this economic crisis while we continue to maintain strong capital and liquidity."
Overall Results
Net income for third quarter 2020 was positively impacted by higher net interest income and gain on sale of loans. The return on average assets for third quarter 2020 was 0.85% compared to 0.52% for second quarter 2020 and 1.15% for third quarter 2019. The return on average equity for third quarter 2020 was 7.43% compared to 4.36% for second quarter of 2020 and 9.44% for third quarter 2019. The cost of funds for third quarter 2020 was 0.85% compared to 1.20% for second quarter 2020 and 1.93% for third quarter 2019. The efficiency ratio for third quarter 2020 was 58.77% compared to 66.02% for second quarter 2020 and 61.47% for third quarter 2019.
Net Interest Income and Margin:
Net Interest Income
Net interest income for third quarter 2020 was $10.7 million, an increase of $790 thousand, or 8.0%, from second quarter 2020, and a decrease of $257 thousand, or 2.4%, from third quarter 2019. The increase in net interest income was primarily driven by our ability to continue to aggressively lower deposit rates and wholesale borrowing costs while strategically shifting our deposit mix to lower-cost core deposits.
Net Interest Margin
Our net interest margin for third quarter 2020 was 3.20% compared to 3.17% for second quarter 2020 and 3.78% for third quarter 2019. The slight increase in net interest margin was due to our time deposits repricing lower, which will continue as deposits reach their maturities. Our cost of funds improved significantly for third quarter 2020 to 0.85% from 1.20% for second quarter 2020 and 1.93% for third quarter 2019.
Provision for Loan Losses:
Our provision for loan losses for third quarter 2020 was $1.6 million, compared to $1.6 million for second quarter 2020 and $300 thousand for third quarter 2019. Approximately $521 thousand of the third quarter provision was driven by an increase in qualitative factors, while $810 thousand was attributed to specific reserve requirements for impaired loans. The assumptions underlying these qualitative factors included a deterioration in the macro-economic environment caused by the pandemic and the uncertainties surrounding the financial condition of our borrowers who received loan deferments under the CARES Act. See Table 10 for additional details and trends. For additional information, go to www.cbb-bank.com under tab "About Us" and select "Investors Relations" to see 3Q 2020 Overview and COVID-19 Updates presentation.
Noninterest Income:
Noninterest income for third quarter 2020 was $3.0 million compared to $1.5 million for second quarter 2020 and $2.4 million for third quarter 2019. The increase in third quarter 2020 was due to higher gains on sale of SBA loans resulting from significantly higher sales volume and higher premiums. Premiums averaged 9.8% compared to 8.6% for the second quarter 2020, and 8.9% for the third quarter 2019. As a result, the volume of loans sold during third quarter 2020 increased to $24.9 million, compared to $9.8 million for second quarter 2020, and $25.37 million for third quarter 2019.
Noninterest Expense:
Noninterest expense for third quarter 2020 was $8.0 million compared to $7.5 million for second quarter 2020 and $8.2 million for third quarter 2019. Salaries and employee benefits increased by $331 thousand compared to the prior quarter. The increase reflected lower deferred loan origination costs for the current quarter due to lower PPP loan origination.
Income Taxes:
The Company's effective tax rate for third quarter 2020 was 27.9% compared to 27.0% for second quarter 2020 and 29.4% for third quarter 2019.
Balance Sheet:
Investment Securities:
Investment securities were $88.8 million at September 30, 2020, a decrease of $2.3 million from June 30, 2020 and $8.4 million from September 30, 2019. The decreases were due to principal paydowns. There were no portfolio additions.
Loans Receivable:
Loans receivable outstanding (including loans held for sale) at September 30, 2020 was $1.01 billion, an increase of $7 million, or 0.7%, from June 30, 2020, and an increase of $106.9 million, or 11.8% from September 30, 2019.
We provided loan payment deferments to our commercial borrowers under the CARES Act. The first round of loans with three-month deferment at June 30, 2020 totaled approximately $286.9 million or 26.9% of total loan portfolio. The second round of loan payment deferments as of September 30, 2020, totaled approximately $21.1 million or 2.0% of loan portfolio. We anticipate there may be additional loan deferments as the six-month SBA loan payment relief to our SBA borrowers had expired in September 2020. SBA borrowers are required to make payments beginning October 2020 unless their loans were originated after April 2020. SBA will only cover principal and interest payments for the six-month period. Our weighted average loan-to-value of CRE loans was 72.2% at September 30, 2020. Excluding SBA loans, our weighted average loan-to-value of CRE loans was 55.1%. For additional information, please go to www.cbb-bank.com under tab "About Us" and select "Investors Relations" to see 3Q 2020 Overview and COVID-19 updates presentation.
Paycheck Protection Program (PPP):
Paycheck Protection Program loans totaled $92.7 million at September 30, 2020. Unearned fees are accreted to income based on the two-year contractual maturity. The SBA did not approve any PPP loan forgiveness application process in the third quarter 2020 and, accordingly, no PPP loans were forgiven in the quarter. SBA has streamlined the PPP forgiveness applications for loans of $50 thousand and under. We anticipate the forgiveness approvals will begin during the fourth quarter of 2020. As we process the loan forgiveness, we will recognize the remaining unaccreted fee income. As of September 30, 2020, we had approximately 700 PPP loans totaling $15.2 million with balances of $50 thousand and under. The remaining unaccreted balance for such loans was $600 thousand.
Allowance for Loan Losses and Asset Quality:
The allowance for loan losses at September 30, 2020 was $13.6 million, or 1.35% of portfolio loans, compared to $12.3 million, or 1.22% of portfolio loans, at June 30, 2020. Excluding PPP loans of $92.7 million, which are government guaranteed, the allowance for loan losses at September 30, 2020 was 1.48% compared to 1.34% at June 30, 2020. Non-performing loans as of September 30, 2020 was $4.1 million, down from $4.2 million at June 30, 2020. Loans with payment deferments are considered performing loans in accordance with the regulatory guidance. Our coverage ratio of allowance for loan losses to nonperforming assets continues to exceed 300%. For additional information, please go to www.cbb-bank.com under tab "About Us" and select "Investors Relations" to see 3Q 2020 Overview and COVID-19 Updates presentation.
SBA Loans Held for Sale:
SBA loans held for sale at September 30, 2020 were $53.8 million, compared to $32.3 million at June 30, 2020 and $42.1 million at September 30, 2019. We continue to assess SBA loan sale premiums and plan to sell loans when it is advantageous to do so. During the quarter, loan sale premiums fluctuated higher and the volume of loan sales increased significantly as demand for SBA loans has returned to the secondary market. See comments under "Noninterest Income", and the Table 7 for additional SBA loan origination and sale data.
Deposits:
Deposits were $1.10 billion at September 30, 2020, up $73.7 million from June 30, 2020 and up $112.1 million from September 30, 2019. Noninterest-bearing demand deposits (DDAs) increased $68.3 million or 23.2% from June 30, 2020 and increased $163.3 million or 81.6% from September 30, 2019. DDAs were 33.0% of total deposits at September 30, 2020 compared to 28.7% at June 30, 2020 and 20.2% at September 30, 2019. NOW and MMDA increased $36.8 million or 19.1% from June 30, 2020 and increased $106.3 million or 86.1% from September 30, 2019. Time Deposits decreased $24.8 million or 5.3% from June 30, 2020 and decreased $155.1 million or 25.8% from September 30, 2019. Our time deposits at September 30, 2020 were $446.7 million or 40.6% of total deposits, compared to $471.5 million or 45.9% of total deposits at June 30, 2020 and down from $601.8 million or 60.8% of total deposits at September 30, 2019. Our cost of funds for third quarter 2020 decreased to 0.85% from to 1.20% in second quarter 2020 and 1.93% for third quarter 2019.
Borrowings:
Borrowings at September 30, 2020 consisted of $70.0 million of Federal Home Loan Bank of San Francisco (FHLB-SF) advances, compared to $20 million at June 30, 2020. The historically low market interest rates enabled us to match fund some of our fixed rate loans with long term, low cost funds to minimize interest rate risk.
Additionally, we match funded approximately $58.7 million of PPP loans using the FRB PPP Liquidity Facility without taking on liquidity or funding risk. The current borrowing rate for the facility is 0.35% and the PPP loan rate is 1% plus a loan fee ranging from 1.0% to 5% depending on the loan amount.
Capital:
Stockholders' equity was $156.0 million at September 30, 2020, representing an increase of $3.3 million, or 2.2%, over stockholders' equity of $152.8 million at June 30, 2020. Book value per share at September 30, 2020 was $15.23 compared with $14.92 at June 30, 2020, an increase of $0.31 per share or 2.1%.
All of our regulatory capital ratios increased at September 30, 2020 from their levels at June 30, 2020 and continue to exceed the minimum levels required to be considered "Well Capitalized" as defined for bank regulatory purposes and in compliance with the fully phased-in Basel III requirements, which went into effect on January 1, 2019, as shown on Table 11 in this press release. Importantly, our Common Equity Tier 1 risked-based capital at September 30, 2020 was 15.24% at the Company level and 15.20% at the Bank level.
About CBB Bancorp, Inc.:
CBB Bancorp, Inc. is the holding company of Commonwealth Business Bank, a full-service commercial bank which specializes in small-to medium-sized businesses and does business as "CBB Bank." The Bank has eight full-service branches in Los Angeles and Orange Counties in California, and Dallas County in Texas; two SBA regional offices in Los Angeles and Dallas Counties; and five loan production offices in Texas, Georgia, Colorado and Washington.
For additional information, please go to www.cbb-bank.com under tab "About Us" and select "Investors Relations" to see 3Q 2020 Overview and COVID-19 Updates presentation.
FORWARD-LOOKING STATEMENTS:
This news release contains a number of forward-looking statements. These statements may be identified by use of words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "likely," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases, including references to assumptions. Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management's experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guaranteeing of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company's control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. You should not place undue reliance on such statements. Factors that could affect our results include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company's control; increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may reduce interest margins; changes in deposit flows, loan demand or real estate values may adversely affect the business of the Company and the Bank; significant increases in loan losses; the possibility that changes in accounting principles, policies or guidelines may cause the Company's financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company's financial condition or results of operations; general economic conditions, either nationally or locally in some or all areas in which the Company conducts business, the effects of the COVID-19 pandemic, and of other widespread outbreaks of disease or pandemics, together with related impacts on general economic conditions, including adverse impacts on our customers' ability to make timely payments on their loans from us, reduced fee income due to reduced loan origination activity, reductions in or absence of gains on loan sales due to uncertainty in the loan sale market, and increased operating expense due to required changes in how we conduct our business; or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates; legislation or regulatory changes may adversely affect the Company's business; technological changes may be more difficult or expensive to implement or accommodate than the Company anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; or litigation or matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates. The Company undertakes no obligation to revise any forward-looking statement contained herein to reflect any future events or circumstances, except to the extent required by law.
Schedules and Financial Data: All tables and data to follow:
STATEMENT OF INCOME AND PERFORMANCE HIGHLIGHT (Unaudited) - Table 1 | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||
September 30, |
|
June 30, |
|
$ |
% |
|
September 30, |
|
$ |
% |
|
September 30, |
|
September 30, |
|
$ |
% |
||||||||||||||||||||||
|
2020 |
|
|
|
2020 |
|
|
Change |
Change |
|
|
2019 |
|
|
Change |
Change |
|
|
2020 |
|
|
|
2019 |
|
|
Change |
Change |
||||||||||||
Interest income | $ |
13,212 |
|
$ |
13,206 |
|
$ |
6 |
|
0.0 |
% |
$ |
15,888 |
|
$ |
(2,676 |
) |
(16.8 |
%) |
$ |
40,891 |
|
$ |
47,768 |
|
$ |
(6,877 |
) |
(14.4 |
%) |
|||||||||
Interest expense |
|
2,558 |
|
|
3,342 |
|
|
(784 |
) |
(23.5 |
%) |
|
4,977 |
|
|
(2,419 |
) |
(48.6 |
%) |
|
9,881 |
|
|
14,139 |
|
|
(4,258 |
) |
(30.1 |
%) |
|||||||||
Net interest income |
|
10,654 |
|
|
9,864 |
|
|
790 |
|
8.0 |
% |
|
10,911 |
|
|
(257 |
) |
(2.4 |
%) |
|
31,010 |
|
|
33,629 |
|
|
(2,619 |
) |
(7.8 |
%) |
|||||||||
Provision for loan losses |
|
1,600 |
|
|
1,600 |
|
|
- |
|
- |
|
|
300 |
|
|
1,300 |
|
433.3 |
% |
|
3,900 |
|
|
600 |
|
|
3,300 |
|
550.0 |
% |
|||||||||
Net interest income after provision for loan losses |
|
9,054 |
|
|
8,264 |
|
|
790 |
|
9.6 |
% |
|
10,611 |
|
|
(1,557 |
) |
(14.7 |
%) |
|
27,110 |
|
|
33,029 |
|
|
(5,919 |
) |
(17.9 |
%) |
|||||||||
Gain on sale of loans |
|
1,662 |
|
|
509 |
|
|
1,153 |
|
226.5 |
% |
|
1,396 |
|
|
266 |
|
19.1 |
% |
|
3,110 |
|
|
4,672 |
|
|
(1,562 |
) |
(33.4 |
%) |
|||||||||
Gain (loss) on sale of OREO |
|
- |
|
|
9 |
|
|
(9 |
) |
(100.0 |
%) |
|
- |
|
|
- |
|
- |
|
|
3 |
|
|
(14 |
) |
|
17 |
|
121.4 |
% |
|||||||||
SBA servicing fee income, net |
|
948 |
|
|
738 |
|
|
210 |
|
28.5 |
% |
|
523 |
|
|
425 |
|
81.3 |
% |
|
2,058 |
|
|
1,338 |
|
|
720 |
|
53.8 |
% |
|||||||||
SBA servicing right impairment |
|
- |
|
|
- |
|
|
- |
|
- |
|
|
- |
|
|
- |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
- |
|
|||||||||
Service charges and other income |
|
385 |
|
|
251 |
|
|
134 |
|
53.4 |
% |
|
505 |
|
|
(120 |
) |
(23.8 |
%) |
|
1,032 |
|
|
1,539 |
|
|
(507 |
) |
(32.9 |
%) |
|||||||||
Noninterest income |
|
2,995 |
|
|
1,507 |
|
|
1,488 |
|
98.7 |
% |
|
2,424 |
|
|
571 |
|
23.6 |
% |
|
6,203 |
|
|
7,535 |
|
|
(1,332 |
) |
(17.7 |
%) |
|||||||||
Salaries and employee benefits |
|
4,948 |
|
|
4,617 |
|
|
331 |
|
7.2 |
% |
|
5,132 |
|
|
(184 |
) |
(3.6 |
%) |
|
15,267 |
|
|
15,697 |
|
|
(430 |
) |
(2.7 |
%) |
|||||||||
Occupancy and equipment |
|
938 |
|
|
943 |
|
|
(5 |
) |
(0.5 |
%) |
|
869 |
|
|
69 |
|
7.9 |
% |
|
2,827 |
|
|
2,532 |
|
|
295 |
|
11.7 |
% |
|||||||||
Marketing expense |
|
265 |
|
|
279 |
|
|
(14 |
) |
(5.0 |
%) |
|
302 |
|
|
(37 |
) |
(12.3 |
%) |
|
1,002 |
|
|
1,811 |
|
|
(809 |
) |
(44.7 |
%) |
|||||||||
Professional expense |
|
503 |
|
|
500 |
|
|
3 |
|
0.6 |
% |
|
691 |
|
|
(188 |
) |
(27.2 |
%) |
|
1,438 |
|
|
1,903 |
|
|
(465 |
) |
(24.4 |
%) |
|||||||||
Other expenses |
|
1,367 |
|
|
1,168 |
|
|
199 |
|
17.0 |
% |
|
1,203 |
|
|
164 |
|
13.6 |
% |
|
3,929 |
|
|
3,819 |
|
|
110 |
|
2.9 |
% |
|||||||||
Noninterest expense |
|
8,021 |
|
|
7,507 |
|
|
514 |
|
6.8 |
% |
|
8,197 |
|
|
(176 |
) |
(2.1 |
%) |
|
24,463 |
|
|
25,762 |
|
|
(1,299 |
) |
(5.0 |
%) |
|||||||||
Income before income tax expense |
|
4,028 |
|
|
2,264 |
|
|
1,764 |
|
77.9 |
% |
|
4,838 |
|
|
(810 |
) |
(16.7 |
%) |
|
8,850 |
|
|
14,802 |
|
|
(5,952 |
) |
(40.2 |
%) |
|||||||||
Income tax expense |
|
1,125 |
|
|
612 |
|
|
513 |
|
83.8 |
% |
|
1,421 |
|
|
(296 |
) |
(20.8 |
%) |
|
2,683 |
|
|
4,312 |
|
|
(1,629 |
) |
(37.8 |
%) |
|||||||||
Net income | $ |
2,903 |
|
$ |
1,652 |
|
$ |
1,251 |
|
75.7 |
% |
$ |
3,417 |
|
$ |
(514 |
) |
(15.0 |
%) |
$ |
6,167 |
|
$ |
10,490 |
|
$ |
(4,323 |
) |
(41.2 |
%) |
|||||||||
Effective tax rate |
|
27.9 |
% |
|
27.0 |
% |
|
0.9 |
% |
3.3 |
% |
|
29.4 |
% |
|
(1.4 |
%) |
(4.9 |
%) |
|
30.3 |
% |
|
29.1 |
% |
|
1.2 |
% |
4.1 |
% |
|||||||||
Outstanding number of shares |
|
10,247,292 |
|
|
10,237,310 |
|
|
9,982 |
|
0.1 |
% |
|
10,170,760 |
|
|
76,532 |
|
0.8 |
% |
|
10,247,292 |
|
|
10,170,760 |
|
|
76,532 |
|
0.8 |
% |
|||||||||
Weighted average shares for basic EPS |
|
10,244,037 |
|
|
10,237,310 |
|
|
6,727 |
|
0.1 |
% |
|
10,141,086 |
|
|
102,951 |
|
1.0 |
% |
|
10,235,197 |
|
|
10,123,118 |
|
|
112,079 |
|
1.1 |
% |
|||||||||
Weighted average shares for diluted EPS |
|
10,273,148 |
|
|
10,276,637 |
|
|
(3,489 |
) |
(0.0 |
%) |
|
10,321,937 |
|
|
(48,789 |
) |
(0.5 |
%) |
|
10,287,659 |
|
|
10,341,228 |
|
|
(53,569 |
) |
(0.5 |
%) |
|||||||||
Basic EPS | $ |
0.28 |
|
$ |
0.16 |
|
$ |
0.12 |
|
75.0 |
% |
$ |
0.34 |
|
$ |
(0.06 |
) |
(17.6 |
%) |
$ |
0.60 |
|
$ |
1.04 |
|
$ |
(0.44 |
) |
(42.3 |
%) |
|||||||||
Diluted EPS | $ |
0.28 |
|
$ |
0.16 |
|
$ |
0.12 |
|
75.0 |
% |
$ |
0.33 |
|
$ |
(0.05 |
) |
(15.2 |
%) |
$ |
0.60 |
|
$ |
1.01 |
|
$ |
(0.41 |
) |
(40.6 |
%) |
|||||||||
Return on average assets |
|
0.85 |
% |
|
0.52 |
% |
|
0.33 |
% |
63.5 |
% |
|
1.15 |
% |
|
(0.30 |
%) |
(26.1 |
%) |
|
0.65 |
% |
|
1.21 |
% |
|
(0.56 |
%) |
(46.3 |
%) |
|||||||||
Return on average equity |
|
7.43 |
% |
|
4.36 |
% |
|
3.07 |
% |
70.4 |
% |
|
9.44 |
% |
|
(2.01 |
%) |
(21.3 |
%) |
|
5.39 |
% |
|
10.09 |
% |
|
(4.70 |
%) |
(46.6 |
%) |
|||||||||
Efficiency ratio¹ |
|
58.77 |
% |
|
66.02 |
% |
|
(7.25 |
%) |
(11.0 |
%) |
|
61.47 |
% |
|
(2.7 |
%) |
(4.4 |
%) |
|
65.74 |
% |
|
62.58 |
% |
|
3.16 |
% |
5.0 |
% |
|||||||||
Yield on interest-earning assets² |
|
3.96 |
% |
|
4.24 |
% |
|
(0.28 |
%) |
(6.6 |
%) |
|
5.49 |
% |
|
(1.53 |
%) |
(27.9 |
%) |
|
4.46 |
% |
|
5.66 |
% |
|
(1.20 |
%) |
(21.2 |
%) |
|||||||||
Cost of funds |
|
0.85 |
% |
|
1.20 |
% |
|
(0.35 |
%) |
(29.2 |
%) |
|
1.93 |
% |
|
(1.08 |
%) |
(56.0 |
%) |
|
1.21 |
% |
|
1.87 |
% |
|
(0.66 |
%) |
(35.3 |
%) |
|||||||||
Cost of funds exc. SBA PPP loan funding |
|
0.89 |
% |
|
1.25 |
% |
|
(0.36 |
%) |
(28.8 |
%) |
|
1.25 |
% |
|||||||||||||||||||||||||
Net interest margin² |
|
3.20 |
% |
|
3.17 |
% |
|
0.03 |
% |
1.0 |
% |
|
3.78 |
% |
|
(0.58 |
%) |
(15.3 |
%) |
|
3.38 |
% |
|
3.99 |
% |
|
(0.61 |
%) |
(15.3 |
%) |
|||||||||
Net interest margin exc. SBA PPP loans² |
|
3.27 |
% |
|
3.20 |
% |
|
0.07 |
% |
2.2 |
% |
|
3.43 |
% |
|||||||||||||||||||||||||
¹ Represents the ratio of noninterest expense less other real estate owned operations to the sum of net interest income before provision for credit losses and total noninterest income, less gains/(loss) on sale of securities, other-than-temporary impairment recovery/(loss) on investment securities and gain/(loss) from other real estate owned. |
² Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate |
BALANCE SHEET, CAPITAL AND OTHER DATA (Unaudited) - Table 2 | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
September 30, |
June 30, | $ | % | September 30, | $ | % | |||||||||||||||||||
|
2020 |
|
|
2020 |
|
Change | Change |
|
2019 |
|
Change | Change |
|||||||||||||
ASSETS | |||||||||||||||||||||||||
Cash and due from banks | $ |
8,030 |
|
$ |
9,043 |
|
$ |
(1,013 |
) |
(11.2 |
%) |
$ |
12,448 |
|
$ |
(4,418 |
) |
(35.5 |
%) |
||||||
Interest-earning deposits at the FRB and other banks |
|
212,279 |
|
|
179,519 |
|
|
32,760 |
|
18.2 |
% |
|
72,907 |
|
|
139,372 |
|
191.2 |
% |
||||||
Investment securities¹ |
|
88,784 |
|
|
91,091 |
|
|
(2,307 |
) |
(2.5 |
%) |
|
97,141 |
|
|
(8,357 |
) |
(8.6 |
%) |
||||||
Loans held-for-sale, at the lower of cost or fair value |
|
53,755 |
|
|
32,264 |
|
|
21,491 |
|
66.6 |
% |
|
42,132 |
|
|
11,623 |
|
27.6 |
% |
||||||
Loans receivable |
|
1,011,867 |
|
|
1,005,128 |
|
|
6,739 |
|
0.7 |
% |
|
905,004 |
|
|
106,863 |
|
11.8 |
% |
||||||
Allowance for loan losses |
|
(13,614 |
) |
|
(12,283 |
) |
|
(1,331 |
) |
(10.8 |
%) |
|
(9,978 |
) |
|
(3,636 |
) |
(36.4 |
%) |
||||||
Loans receivable, net |
|
998,253 |
|
|
992,845 |
|
|
5,408 |
|
0.5 |
% |
|
895,026 |
|
|
103,227 |
|
11.5 |
% |
||||||
OREO |
|
- |
|
|
- |
|
|
- |
|
- |
|
|
11 |
|
|
(11 |
) |
(100.0 |
%) |
||||||
Restricted stock investments |
|
8,196 |
|
|
8,196 |
|
|
- |
|
- |
|
|
8,194 |
|
|
2 |
|
0.0 |
% |
||||||
Servicing assets |
|
9,043 |
|
|
8,944 |
|
|
99 |
|
1.1 |
% |
|
9,953 |
|
|
(910 |
) |
(9.1 |
%) |
||||||
Other assets |
|
21,064 |
|
|
21,383 |
|
|
(319 |
) |
(1.5 |
%) |
|
21,885 |
|
|
(821 |
) |
(3.8 |
%) |
||||||
Total assets | $ |
1,399,404 |
|
$ |
1,343,285 |
|
$ |
56,119 |
|
4.2 |
% |
$ |
1,159,697 |
|
$ |
239,707 |
|
20.7 |
% |
||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||||||||
Noninterest-bearing | $ |
363,350 |
|
$ |
295,003 |
|
$ |
68,347 |
|
23.2 |
% |
$ |
200,034 |
|
$ |
163,316 |
|
81.6 |
% |
||||||
Interest-bearing |
|
738,040 |
|
|
732,647 |
|
|
5,393 |
|
0.7 |
% |
|
789,280 |
|
|
(51,240 |
) |
(6.5 |
%) |
||||||
Total deposits |
|
1,101,390 |
|
|
1,027,650 |
|
|
73,740 |
|
7.2 |
% |
|
989,314 |
|
|
112,076 |
|
11.3 |
% |
||||||
FHLB advances and other borrowing |
|
128,671 |
|
|
148,671 |
|
|
(20,000 |
) |
(13.5 |
%) |
|
10,000 |
|
|
118,671 |
|
1186.7 |
% |
||||||
Other liabilities |
|
13,295 |
|
|
14,208 |
|
|
(913 |
) |
(6.4 |
%) |
|
15,164 |
|
|
(1,869 |
) |
(12.3 |
%) |
||||||
Total liabilities |
|
1,243,356 |
|
|
1,190,529 |
|
|
52,827 |
|
4.4 |
% |
|
1,014,478 |
|
|
228,878 |
|
22.6 |
% |
||||||
Stockholders' Equity |
|
156,048 |
|
|
152,756 |
|
|
3,292 |
|
2.2 |
% |
|
145,219 |
|
|
10,829 |
|
7.5 |
% |
||||||
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ |
1,399,404 |
|
$ |
1,343,285 |
|
$ |
56,119 |
|
4.2 |
% |
$ |
1,159,697 |
|
$ |
239,707 |
|
20.7 |
% |
||||||
CAPITAL RATIOS | |||||||||||||||||||||||||
Leverage ratio | |||||||||||||||||||||||||
Company |
|
11.76 |
% |
|
11.98 |
% |
|
(0.22 |
%) |
(1.8 |
%) |
|
12.14 |
% |
|
(0.38 |
%) |
(3.1 |
%) |
||||||
Bank |
|
11.72 |
% |
|
11.94 |
% |
|
(0.22 |
%) |
(1.8 |
%) |
|
12.10 |
% |
|
(0.38 |
%) |
(3.1 |
%) |
||||||
Common equity tier 1 risk-based capital ratio | |||||||||||||||||||||||||
Company |
|
15.24 |
% |
|
15.23 |
% |
|
0.01 |
% |
0.1 |
% |
|
14.71 |
% |
|
0.53 |
% |
3.6 |
% |
||||||
Bank |
|
15.20 |
% |
|
15.18 |
% |
|
0.02 |
% |
0.1 |
% |
|
14.66 |
% |
|
0.54 |
% |
3.7 |
% |
||||||
Tier 1 risk-based capital ratio | |||||||||||||||||||||||||
Company |
|
15.24 |
% |
|
15.23 |
% |
|
0.01 |
% |
0.1 |
% |
|
14.71 |
% |
|
0.53 |
% |
3.6 |
% |
||||||
Bank |
|
15.20 |
% |
|
15.18 |
% |
|
0.02 |
% |
0.1 |
% |
|
14.66 |
% |
|
0.54 |
% |
3.7 |
% |
||||||
Total risk-based capital ratio | |||||||||||||||||||||||||
Company |
|
16.50 |
% |
|
16.48 |
% |
|
0.02 |
% |
0.1 |
% |
|
15.80 |
% |
|
0.70 |
% |
4.4 |
% |
||||||
Bank |
|
16.45 |
% |
|
16.43 |
% |
|
0.02 |
% |
0.1 |
% |
|
15.75 |
% |
|
0.70 |
% |
4.4 |
% |
||||||
Book value per share | $ |
15.23 |
|
$ |
14.92 |
|
$ |
0.31 |
|
2.1 |
% |
$ |
14.28 |
|
$ |
0.95 |
|
6.7 |
% |
||||||
Loan-to-Deposit (LTD) ratio |
|
91.87 |
% |
|
97.81 |
% |
|
(5.94 |
%) |
(6.1 |
%) |
|
91.48 |
% |
|
0.39 |
% |
0.4 |
% |
||||||
Nonperforming assets |
|
4,111 |
|
|
4,189 |
|
|
(78 |
) |
(1.9 |
%) |
|
5,134 |
|
$ |
(1,023 |
) |
(19.9 |
%) |
||||||
Nonperforming assets as a % of loans receivable |
|
0.41 |
% |
|
0.42 |
% |
|
(0.01 |
%) |
(2.4 |
%) |
|
0.57 |
% |
|
(0.16 |
%) |
(28.1 |
%) |
||||||
ALLL as a % of loans receivable |
|
1.35 |
% |
|
1.22 |
% |
|
0.13 |
% |
10.7 |
% |
|
1.10 |
% |
|
0.25 |
% |
22.7 |
% |
||||||
ALLL as a % of loans receivable exc. SBA PPP loans |
|
1.48 |
% |
|
1.34 |
% |
|
0.14 |
% |
10.4 |
% |
||||||||||||||
¹ Includes AFS and HTM |
FIVE-QUARTER STATEMENT OF INCOME (Unaudited) - Table 3 | ||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||||
|
2020 |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2019 |
|
||||||||
Interest income | $ |
13,212 |
|
$ |
13,206 |
|
$ |
14,473 |
|
$ |
15,254 |
|
$ |
15,888 |
|
|||||||
Interest expense |
|
2,558 |
|
|
3,342 |
|
|
3,981 |
|
|
4,517 |
|
|
4,977 |
|
|||||||
Net interest income |
|
10,654 |
|
|
9,864 |
|
|
10,492 |
|
|
10,737 |
|
|
10,911 |
|
|||||||
Provision for loan losses |
|
1,600 |
|
|
1,600 |
|
|
700 |
|
|
700 |
|
|
300 |
|
|||||||
Net interest income after provision for loan losses |
|
9,054 |
|
|
8,264 |
|
|
9,792 |
|
|
10,037 |
|
|
10,611 |
|
|||||||
Gain on sale of loans |
|
1,662 |
|
|
509 |
|
|
939 |
|
|
1,481 |
|
|
1,396 |
|
|||||||
Gain (loss) on sale of OREO |
|
- |
|
|
9 |
|
|
(6 |
) |
|
- |
|
|
- |
|
|||||||
SBA servicing fee income, net |
|
948 |
|
|
738 |
|
|
372 |
|
|
413 |
|
|
523 |
|
|||||||
SBA servicing right impairment |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||||
Service charges and other income |
|
385 |
|
|
251 |
|
|
396 |
|
|
416 |
|
|
505 |
|
|||||||
Noninterest income |
|
2,995 |
|
|
1,507 |
|
|
1,701 |
|
|
2,310 |
|
|
2,424 |
|
|||||||
Salaries and employee benefits |
|
4,948 |
|
|
4,617 |
|
|
5,702 |
|
|
5,355 |
|
|
5,132 |
|
|||||||
Occupancy and equipment |
|
938 |
|
|
943 |
|
|
946 |
|
|
978 |
|
|
869 |
|
|||||||
Marketing expense |
|
265 |
|
|
279 |
|
|
458 |
|
|
119 |
|
|
302 |
|
|||||||
Professional expense |
|
503 |
|
|
500 |
|
|
435 |
|
|
417 |
|
|
691 |
|
|||||||
Other expenses |
|
1,367 |
|
|
1,168 |
|
|
1,394 |
|
|
1,487 |
|
|
1,203 |
|
|||||||
Noninterest expense |
|
8,021 |
|
|
7,507 |
|
|
8,935 |
|
|
8,356 |
|
|
8,197 |
|
|||||||
Income before income tax expense |
|
4,028 |
|
|
2,264 |
|
|
2,558 |
|
|
3,991 |
|
|
4,838 |
|
|||||||
Income tax expense |
|
1,125 |
|
|
612 |
|
|
946 |
|
|
1,137 |
|
|
1,421 |
|
|||||||
Net income | $ |
2,903 |
|
$ |
1,652 |
|
$ |
1,612 |
|
$ |
2,854 |
|
$ |
3,417 |
|
|||||||
Effective tax rate |
|
27.9 |
% |
|
27.0 |
% |
|
37.0 |
% |
|
28.5 |
% |
|
29.4 |
% |
|||||||
Outstanding number of shares |
|
10,247,292 |
|
|
10,237,310 |
|
|
10,237,310 |
|
|
10,197,380 |
|
|
10,170,760 |
|
|||||||
Weighted average shares for basic EPS |
|
10,244,037 |
|
|
10,237,310 |
|
|
10,224,146 |
|
|
10,188,700 |
|
|
10,141,086 |
|
|||||||
Weighted average shares for diluted EPS |
|
10,273,148 |
|
|
10,276,637 |
|
|
10,327,730 |
|
|
10,336,793 |
|
|
10,321,937 |
|
|||||||
Basic EPS | $ |
0.28 |
|
$ |
0.16 |
|
$ |
0.16 |
|
$ |
0.28 |
|
$ |
0.34 |
|
|||||||
Diluted EPS | $ |
0.28 |
|
$ |
0.16 |
|
$ |
0.16 |
|
$ |
0.28 |
|
$ |
0.33 |
|
QUARTERLY SALARIES BENEFIT METRICS (Unaudited) - Table 4 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
At or for the Three Months Ended | ||||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||||
|
2020 |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2019 |
|
||||||||
Salaries and benefits | $ |
4,948 |
|
$ |
4,617 |
|
$ |
5,702 |
|
$ |
5,355 |
|
$ |
5,132 |
|
|||||||
FTE at the end of period |
|
179 |
|
|
191 |
|
|
194 |
|
|
190 |
|
|
190 |
|
|||||||
Average FTE during the period |
|
181 |
|
|
193 |
|
|
192 |
|
|
191 |
|
|
191 |
|
|||||||
Salaries and benefits/average FTE¹ | $ |
109 |
|
$ |
96 |
|
$ |
119 |
|
$ |
111 |
|
$ |
106 |
|
|||||||
Salaries and benefits/average assets¹ |
|
1.45 |
% |
|
1.44 |
% |
|
2.03 |
% |
|
1.83 |
% |
|
1.72 |
% |
|||||||
Noninterest expense/average assets¹ |
|
2.34 |
% |
|
2.35 |
% |
|
3.19 |
% |
|
2.85 |
% |
|
2.75 |
% |
|||||||
1 Annualized |
FIVE-QUARTER BALANCE SHEET (Unaudited) - Table 5 | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
|
2020 |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2019 |
|
|||||
ASSETS | |||||||||||||||||||
Cash and due from banks | $ |
8,030 |
|
$ |
9,043 |
|
$ |
7,804 |
|
$ |
10,059 |
|
$ |
12,448 |
|
||||
Interest-earning deposits at the FRB and other banks |
|
212,279 |
|
|
179,519 |
|
|
113,880 |
|
|
93,259 |
|
|
72,907 |
|
||||
Investment securities¹ |
|
88,784 |
|
|
91,091 |
|
|
91,863 |
|
|
94,640 |
|
|
97,141 |
|
||||
Loans held-for-sale, at the lower of cost or fair value |
|
53,755 |
|
|
32,264 |
|
|
29,989 |
|
|
28,826 |
|
|
42,132 |
|
||||
Loans receivable |
|
1,011,867 |
|
|
1,005,128 |
|
|
931,717 |
|
|
906,875 |
|
|
905,004 |
|
||||
Allowance for loan losses |
|
(13,614 |
) |
|
(12,283 |
) |
|
(11,034 |
) |
|
(10,596 |
) |
|
(9,978 |
) |
||||
Loans receivable, net |
|
998,253 |
|
|
992,845 |
|
|
920,683 |
|
|
896,279 |
|
|
895,026 |
|
||||
OREO |
|
- |
|
|
- |
|
|
364 |
|
|
362 |
|
|
11 |
|
||||
Restricted stock investments |
|
8,196 |
|
|
8,196 |
|
|
8,194 |
|
|
8,194 |
|
|
8,194 |
|
||||
Servicing assets |
|
9,043 |
|
|
8,944 |
|
|
9,203 |
|
|
9,697 |
|
|
9,953 |
|
||||
Other assets |
|
21,064 |
|
|
21,383 |
|
|
20,144 |
|
|
21,372 |
|
|
21,885 |
|
||||
Total assets | $ |
1,399,404 |
|
$ |
1,343,285 |
|
$ |
1,202,124 |
|
$ |
1,162,688 |
|
$ |
1,159,697 |
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||
Noninterest-bearing | $ |
363,350 |
|
$ |
295,003 |
|
$ |
211,139 |
|
$ |
209,484 |
|
$ |
200,034 |
|
||||
Interest-bearing |
|
738,040 |
|
|
732,647 |
|
|
739,285 |
|
|
763,822 |
|
|
789,280 |
|
||||
Total deposits |
|
1,101,390 |
|
|
1,027,650 |
|
|
950,424 |
|
|
973,306 |
|
|
989,314 |
|
||||
FHLB advances |
|
128,671 |
|
|
148,671 |
|
|
85,000 |
|
|
25,000 |
|
|
10,000 |
|
||||
Other liabilities |
|
13,295 |
|
|
14,208 |
|
|
16,895 |
|
|
16,298 |
|
|
15,164 |
|
||||
Total liabilities |
|
1,243,356 |
|
|
1,190,529 |
|
|
1,052,319 |
|
|
1,014,604 |
|
|
1,014,478 |
|
||||
Stockholders' Equity |
|
156,048 |
|
|
152,756 |
|
|
149,805 |
|
|
148,084 |
|
|
145,219 |
|
||||
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ |
1,399,404 |
|
$ |
1,343,285 |
|
$ |
1,202,124 |
|
$ |
1,162,688 |
|
$ |
1,159,697 |
|
||||
¹ Includes AFS and HTM |
FIVE-QUARTER LOANS RECEIVABLE COMPONENTS (Unaudited) - Table 6 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | |||||||||||||||||||||||||||
Balance | % | Balance | % | Balance | % | Balance | % | Balance | % | ||||||||||||||||||||||
Construction | $ |
18,236 |
1.8 |
% |
$ |
14,649 |
|
1.5 |
% |
$ |
12,607 |
1.4 |
% |
$ |
16,957 |
1.9 |
% |
$ |
18,477 |
2.0 |
% |
||||||||||
Commercial real estate |
|
779,062 |
77.0 |
% |
|
769,563 |
|
76.6 |
% |
|
768,539 |
82.5 |
% |
|
746,969 |
82.4 |
% |
|
725,096 |
80.1 |
% |
||||||||||
Commercial and industrial |
|
211,298 |
20.9 |
% |
|
215,362 |
|
21.4 |
% |
|
143,117 |
15.4 |
% |
|
135,412 |
14.9 |
% |
|
153,306 |
16.9 |
% |
||||||||||
Consumer |
|
2,751 |
0.3 |
% |
|
5,646 |
|
0.6 |
% |
|
5,056 |
0.5 |
% |
|
5,184 |
0.6 |
% |
|
5,389 |
0.6 |
% |
||||||||||
Gross loans |
|
1,011,347 |
99.9 |
% |
|
1,005,220 |
|
100.0 |
% |
|
929,319 |
99.7 |
% |
|
904,522 |
99.7 |
% |
|
902,268 |
99.7 |
% |
||||||||||
Net deferred loan fees/costs |
|
520 |
0.1 |
% |
|
(92 |
) |
0.0 |
% |
|
2,398 |
0.3 |
% |
|
2,353 |
0.3 |
% |
|
2,736 |
0.3 |
% |
||||||||||
Loans receivable | $ |
1,011,867 |
100.0 |
% |
$ |
1,005,128 |
|
100.0 |
% |
$ |
931,717 |
100.0 |
% |
$ |
906,875 |
100.0 |
% |
$ |
905,004 |
100.0 |
% |
||||||||||
Loans held-for-sale | $ |
53,755 |
$ |
32,264 |
|
$ |
29,989 |
$ |
28,826 |
$ |
42,132 |
||||||||||||||||||||
Loans receivable, including loans held-for-sale | $ |
1,065,622 |
$ |
1,037,392 |
|
$ |
961,706 |
$ |
935,701 |
$ |
947,136 |
SBA LOAN PRODUCTIONS/SALES DATA (Unaudited) - Table 7 | ||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
|
2020 |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||||||
SBA loans held-for-sale at beginning of the quarter/year | $ |
32,264 |
|
$ |
29,988 |
|
$ |
28,826 |
|
$ |
42,132 |
|
$ |
46,875 |
|
$ |
28,826 |
|
$ |
45,665 |
|
|||||||
SBA loans originated/transferred from/to held-for- | ||||||||||||||||||||||||||||
investment during the quarter/year |
|
46,731 |
|
|
12,497 |
|
|
20,479 |
|
|
19,146 |
|
|
20,850 |
|
|
79,707 |
|
|
84,131 |
|
|||||||
SBA loans sold during the quarter/year |
|
(24,866 |
) |
|
(9,832 |
) |
|
(18,530 |
) |
|
(28,948 |
) |
|
(25,276 |
) |
|
(53,228 |
) |
|
(86,419 |
) |
|||||||
SBA loans principal payment, net of advance |
|
(374 |
) |
|
(389 |
) |
|
(787 |
) |
|
(3,504 |
) |
|
(317 |
) |
|
(1,550 |
) |
|
(1,245 |
) |
|||||||
SBA loans held-for-sale at end of the quarter/year | $ |
53,755 |
|
$ |
32,264 |
|
$ |
29,988 |
|
$ |
28,826 |
|
$ |
42,132 |
|
$ |
53,755 |
|
$ |
42,132 |
|
|||||||
Gain on sale of SBA loans | $ |
1,662 |
|
$ |
509 |
|
$ |
939 |
|
$ |
1,481 |
|
$ |
1,396 |
|
$ |
3,110 |
|
$ |
4,672 |
|
|||||||
Premium on sale (weighted average) |
|
9.8 |
% |
|
8.6 |
% |
|
8.0 |
% |
|
7.6 |
% |
|
8.7 |
% |
|
8.9 |
% |
|
8.4 |
% |
|||||||
SBA loan production | $ |
59,944 |
|
$ |
104,800 |
|
$ |
31,794 |
|
$ |
30,783 |
|
$ |
30,009 |
|
$ |
196,538 |
|
$ |
106,193 |
|
SBA SERVICING ASSETS AND SERVICING FEES (Unaudited) - Table 8 | ||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
|
2020 |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||||||
SBA servicing assets @ beginning of the quarter/year | $ |
8,944 |
|
$ |
9,203 |
|
$ |
9,697 |
|
$ |
9,953 |
|
$ |
10,174 |
|
$ |
9,697 |
|
$ |
10,541 |
|
|||||||
Newly added SBA servicing assets from SBA loans sold |
|
523 |
|
|
197 |
|
|
383 |
|
|
606 |
|
|
531 |
|
|
1,103 |
|
|
1,784 |
|
|||||||
Regular quarterly/annual servicing assets amortization |
|
(384 |
) |
|
(383 |
) |
|
(388 |
) |
|
(402 |
) |
|
(398 |
) |
|
(1,155 |
) |
|
(1,188 |
) |
|||||||
SBA servicing assets amortized from SBA loans paid off/charged off |
|
(40 |
) |
|
(73 |
) |
|
(489 |
) |
|
(460 |
) |
|
(354 |
) |
|
(602 |
) |
|
(1,184 |
) |
|||||||
Subtotal before impairment |
|
9,043 |
|
|
8,944 |
|
|
9,203 |
|
|
9,697 |
|
|
9,953 |
|
|
9,043 |
|
|
9,953 |
|
|||||||
SBA servicing assets impairment |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||||
SBA servicing liability impairment |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||||
SBA servicing assets @ end of the quarter/year | $ |
9,043 |
|
$ |
8,944 |
|
$ |
9,203 |
|
$ |
9,697 |
|
$ |
9,953 |
|
$ |
9,043 |
|
$ |
9,953 |
|
FIVE-QUARTER DEPOSIT COMPONENTS (Unaudited) - Table 9 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | |||||||||||||||||||||||||||
Balance | % | Balance | % | Balance | % | Balance | % | Balance | % | ||||||||||||||||||||||
Noninterest-bearing demand | $ |
363,350 |
33.0 |
% |
$ |
295,003 |
|
28.7 |
% |
$ |
211,139 |
22.2 |
% |
$ |
209,484 |
21.5 |
% |
$ |
200,034 |
20.2 |
% |
||||||||||
NOW & MMDA |
|
229,730 |
20.9 |
% |
|
192,950 |
|
18.8 |
% |
|
136,356 |
14.3 |
% |
|
117,450 |
12.1 |
% |
|
123,477 |
12.5 |
% |
||||||||||
Savings |
|
61,631 |
5.6 |
% |
|
68,244 |
|
6.6 |
% |
|
64,659 |
6.8 |
% |
|
67,060 |
6.9 |
% |
|
63,978 |
6.5 |
% |
||||||||||
TCDs of $250K and under |
|
230,230 |
20.9 |
% |
|
241,718 |
|
23.5 |
% |
|
273,624 |
28.8 |
% |
|
328,058 |
33.7 |
% |
|
342,670 |
34.6 |
% |
||||||||||
TCDs of $250K over |
|
146,911 |
13.3 |
% |
|
139,197 |
|
13.5 |
% |
|
154,108 |
16.2 |
% |
|
158,009 |
16.2 |
% |
|
165,910 |
16.8 |
% |
||||||||||
Wholesale TCDs |
|
69,538 |
6.3 |
% |
|
90,538 |
|
8.8 |
% |
|
110,538 |
11.6 |
% |
|
93,245 |
9.6 |
% |
|
93,245 |
9.4 |
% |
||||||||||
Total Deposits | $ |
1,101,390 |
100.0 |
% |
$ |
1,027,650 |
$ |
1 |
|
$ |
950,424 |
100.0 |
% |
$ |
973,306 |
100.0 |
% |
$ |
989,314 |
100.0 |
% |
||||||||||
Recap: | |||||||||||||||||||||||||||||||
Noninterest-bearing demand | $ |
363,350 |
33.0 |
% |
$ |
295,003 |
|
28.7 |
% |
$ |
211,139 |
22.2 |
% |
$ |
209,484 |
21.5 |
% |
$ |
200,034 |
20.2 |
% |
||||||||||
NOW & MMDA |
|
229,730 |
20.9 |
% |
|
192,950 |
|
18.8 |
% |
|
136,356 |
14.3 |
% |
|
117,450 |
12.1 |
% |
|
123,477 |
12.5 |
% |
||||||||||
Savings |
|
61,631 |
5.6 |
% |
|
68,244 |
|
6.6 |
% |
|
64,659 |
6.8 |
% |
|
67,060 |
6.9 |
% |
|
63,978 |
6.5 |
% |
||||||||||
TCDs of $250K and under |
|
230,230 |
20.9 |
% |
|
241,718 |
|
23.5 |
% |
|
273,624 |
28.8 |
% |
|
328,058 |
33.7 |
% |
|
342,670 |
34.6 |
% |
||||||||||
Core Deposits |
|
884,941 |
80.3 |
% |
|
797,915 |
|
77.6 |
% |
|
685,778 |
72.2 |
% |
|
722,052 |
74.2 |
% |
|
730,159 |
73.8 |
% |
||||||||||
TCDs of $250K over |
|
146,911 |
13.3 |
% |
|
139,197 |
|
13.5 |
% |
|
154,108 |
16.2 |
% |
|
158,009 |
16.2 |
% |
|
165,910 |
16.8 |
% |
||||||||||
Wholesale TCDs |
|
69,538 |
6.3 |
% |
|
90,538 |
|
8.8 |
% |
|
110,538 |
11.6 |
% |
|
93,245 |
9.6 |
% |
|
93,245 |
9.4 |
% |
||||||||||
Noncore Deposits |
|
216,449 |
19.7 |
% |
|
229,735 |
|
22.4 |
% |
|
264,646 |
27.8 |
% |
|
251,254 |
25.8 |
% |
|
259,155 |
26.2 |
% |
||||||||||
Total Deposits | $ |
1,101,390 |
100.0 |
% |
$ |
1,027,650 |
|
100.0 |
% |
$ |
950,424 |
100.0 |
% |
$ |
973,306 |
100.0 |
% |
$ |
989,314 |
100.0 |
% |
SELECTED LOAN AND ASSET QUALITY HIGHLIGHTS (Unaudited) - Table 10 | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
3rd Qtr. | 2nd Qtr. | 1st Qtr. | 4th Qtr. | 3rd Qtr. | ||||||||||||||||
|
2020 |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2019 |
|
||||||
Allowance for Loan Losses | ||||||||||||||||||||
Balance at beginning of period | $ |
12,283 |
|
$ |
11,034 |
|
$ |
10,596 |
|
$ |
9,978 |
|
$ |
10,019 |
|
|||||
Provision for loan losses |
|
1,600 |
|
|
1,600 |
|
|
700 |
|
|
700 |
|
|
300 |
|
|||||
Charge-offs |
|
(292 |
) |
|
(359 |
) |
|
(284 |
) |
|
(94 |
) |
|
(385 |
) |
|||||
Recoveries |
|
23 |
|
|
8 |
|
|
22 |
|
|
12 |
|
|
44 |
|
|||||
Balance at the end of period | $ |
13,614 |
|
$ |
12,283 |
|
$ |
11,034 |
|
$ |
10,596 |
|
$ |
9,978 |
|
|||||
Nonperforming Assets:¹ | ||||||||||||||||||||
Over 90 days still accruing | $ |
200 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
|||||
Nonaccrual loans |
|
3,911 |
|
|
4,189 |
|
|
6,901 |
|
|
8,030 |
|
|
5,123 |
|
|||||
Total nonperforming loans |
|
4,111 |
|
|
4,189 |
|
|
6,901 |
|
|
8,030 |
|
|
5,123 |
|
|||||
Other real estate owned |
|
- |
|
|
- |
|
|
364 |
|
|
362 |
|
|
11 |
|
|||||
Total nonperforming assets | $ |
4,111 |
|
$ |
4,189 |
|
$ |
7,265 |
|
$ |
8,392 |
|
$ |
5,134 |
|
|||||
Classified Assets:¹ | ||||||||||||||||||||
Substandard | $ |
20,579 |
|
$ |
9,909 |
|
$ |
13,301 |
|
$ |
14,497 |
|
$ |
8,965 |
|
|||||
Doubtful |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||
Loss |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||
Total classified loans | $ |
20,579 |
|
$ |
9,909 |
|
$ |
13,301 |
|
$ |
14,497 |
|
$ |
8,965 |
|
|||||
Other real estate owned |
|
- |
|
|
- |
|
|
364 |
|
|
362 |
|
|
11 |
|
|||||
Total classified assets | $ |
20,579 |
|
$ |
9,909 |
|
$ |
13,665 |
|
$ |
14,859 |
|
$ |
8,976 |
|
|||||
Performing TDR loans: | $ |
1,073 |
|
$ |
1,073 |
|
$ |
508 |
|
$ |
592 |
|
$ |
1,040 |
|
|||||
Delinquent Loans:¹ | ||||||||||||||||||||
Loans 30-89 days past due | $ |
714 |
|
$ |
721 |
|
$ |
2,172 |
|
$ |
43 |
|
$ |
285 |
|
|||||
90 days or more past due and still accruing |
|
200 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||
Nonaccrual |
|
3,911 |
|
|
4,189 |
|
|
6,901 |
|
|
8,030 |
|
|
5,123 |
|
|||||
Total delinquent loans | $ |
4,825 |
|
$ |
4,910 |
|
$ |
9,073 |
|
$ |
8,073 |
|
$ |
5,408 |
|
|||||
Asset Quality Ratios: | ||||||||||||||||||||
Net (recoveries) charge-offs to average loans² |
|
0.10 |
% |
|
0.14 |
% |
|
0.11 |
% |
|
0.03 |
% |
|
0.15 |
% |
|||||
Nonaccrual loans to loans receivable |
|
0.39 |
% |
|
0.42 |
% |
|
0.74 |
% |
|
0.89 |
% |
|
0.57 |
% |
|||||
Nonperforming loans to loans receivable |
|
0.41 |
% |
|
0.42 |
% |
|
0.74 |
% |
|
0.89 |
% |
|
0.57 |
% |
|||||
Nonperforming assets to total assets |
|
0.29 |
% |
|
0.31 |
% |
|
0.60 |
% |
|
0.72 |
% |
|
0.44 |
% |
|||||
Classified loans to loans receivable |
|
2.03 |
% |
|
0.99 |
% |
|
1.43 |
% |
|
1.60 |
% |
|
0.99 |
% |
|||||
Classified loans to Tier 1 and ALLL |
|
12.13 |
% |
|
6.00 |
% |
|
8.27 |
% |
|
9.14 |
% |
|
5.78 |
% |
|||||
Classified assets to total assets |
|
1.47 |
% |
|
0.74 |
% |
|
1.14 |
% |
|
1.28 |
% |
|
0.77 |
% |
|||||
Classified assets to Tier 1 and ALLL |
|
12.13 |
% |
|
6.00 |
% |
|
8.50 |
% |
|
9.36 |
% |
|
5.78 |
% |
|||||
ALLL to loans receivable |
|
1.35 |
% |
|
1.22 |
% |
|
1.18 |
% |
|
1.17 |
% |
|
1.10 |
% |
|||||
ALLL to loans receivable exc. SBA PPP loans |
|
1.48 |
% |
|
1.34 |
% |
||||||||||||||
ALLL to nonaccrual loans |
|
348.10 |
% |
|
293.22 |
% |
|
159.89 |
% |
|
131.96 |
% |
|
194.77 |
% |
|||||
ALLL to nonperforming loans |
|
331.16 |
% |
|
293.22 |
% |
|
159.89 |
% |
|
131.96 |
% |
|
194.77 |
% |
|||||
ALLL to nonperforming assets |
|
331.16 |
% |
|
293.22 |
% |
|
151.88 |
% |
|
126.26 |
% |
|
194.35 |
% |
|||||
Texas ratio ³ |
|
2.42 |
% |
|
2.54 |
% |
|
4.52 |
% |
|
5.29 |
% |
|
3.31 |
% |
|||||
1 Net of SBA guaranteed balance | ||||||||||||||||||||
2 Includes loans held-for-sale | ||||||||||||||||||||
3 Nonperforming assets divided by tangible common equity and ALLL |
FIVE-QUARTER CAPITAL RATIOS (Unaudited) - Table 11 | |||||||||||||||||||||||||||
Well Capitalized | Adequately Capitalized | ||||||||||||||||||||||||||
Regulatory | BASEL III | September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||||||||
Requirement | Fully Phased In |
|
2020 |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2019 |
|
|||||||||||
Leverage ratio | |||||||||||||||||||||||||||
Company | N/A |
|
N/A |
|
|
11.76 |
% |
|
11.98 |
% |
|
13.17 |
% |
|
12.59 |
% |
|
12.14 |
% |
||||||||
Bank | 5.00 |
% |
4.00 |
% |
|
11.72 |
% |
|
11.94 |
% |
|
13.12 |
% |
|
12.55 |
% |
|
12.10 |
% |
||||||||
Common equity tier 1 risk-based capital ratio | |||||||||||||||||||||||||||
Company | N/A |
|
N/A |
|
|
15.24 |
% |
|
15.23 |
% |
|
14.82 |
% |
|
14.96 |
% |
|
14.71 |
% |
||||||||
Bank | 6.50 |
% |
7.00 |
% |
|
15.20 |
% |
|
15.18 |
% |
|
14.77 |
% |
|
14.91 |
% |
|
14.66 |
% |
||||||||
Tier 1 risk-based capital ratio | |||||||||||||||||||||||||||
Company | N/A |
|
N/A |
|
|
15.24 |
% |
|
15.23 |
% |
|
14.82 |
% |
|
14.96 |
% |
|
14.71 |
% |
||||||||
Bank | 8.00 |
% |
8.50 |
% |
|
15.20 |
% |
|
15.18 |
% |
|
14.77 |
% |
|
14.91 |
% |
|
14.66 |
% |
||||||||
Total risk-based capital ratio | |||||||||||||||||||||||||||
Company | N/A |
|
N/A |
|
|
16.50 |
% |
|
16.48 |
% |
|
16.01 |
% |
|
16.13 |
% |
|
15.80 |
% |
||||||||
Bank | 10.00 |
% |
10.50 |
% |
|
16.45 |
% |
|
16.43 |
% |
|
15.95 |
% |
|
16.08 |
% |
|
15.75 |
% |
||||||||
Common equity/total assets |
|
11.15 |
% |
|
11.37 |
% |
|
12.46 |
% |
|
12.74 |
% |
|
12.52 |
% |
||||||||||||
Common equity per share | $ |
15.23 |
|
$ |
14.92 |
|
$ |
14.63 |
|
$ |
14.52 |
|
$ |
14.28 |
|
MARGIN ANALYSIS (Unaudited) -Table 12 | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||
Avg Balance | Interest | Yield | Avg Balance | Interest | Yield | Avg Balance | Interest | Yield | Avg Balance | Interest | Yield | Avg Balance | Interest | Yield | |||||||||||||||||||||||||||||||||||
Number of Days in the Period | |||||||||||||||||||||||||||||||||||||||||||||||||
INTEREST-EARNING ASSETS | |||||||||||||||||||||||||||||||||||||||||||||||||
Loans ¹ | $ |
1,046,678 |
|
$ |
12,650 |
4.81 |
% |
$ |
1,018,596 |
|
$ |
12,568 |
4.96 |
% |
$ |
941,147 |
|
$ |
13,629 |
5.82 |
% |
$ |
930,455 |
|
$ |
14,119 |
6.02 |
% |
$ |
932,004 |
|
$ |
14,528 |
6.18 |
% |
||||||||||||||
Investment securities² |
|
90,450 |
|
|
471 |
2.07 |
% |
|
91,401 |
|
|
546 |
2.40 |
% |
|
94,375 |
|
|
581 |
2.48 |
% |
|
96,005 |
|
|
621 |
2.57 |
% |
|
98,866 |
|
|
650 |
2.61 |
% |
||||||||||||||
Interest-earning deposits at the FRB and other banks |
|
186,678 |
|
|
58 |
0.12 |
% |
|
137,945 |
|
|
45 |
0 |
|
|
55,222 |
|
|
188 |
1.37 |
% |
|
99,297 |
|
|
410 |
1.64 |
% |
|
111,437 |
|
|
611 |
2.18 |
% |
||||||||||||||
Other earning assets |
|
8,196 |
|
|
80 |
3.88 |
% |
|
8,195 |
|
|
93 |
4.56 |
% |
|
8,194 |
|
|
122 |
5.99 |
% |
|
8,194 |
|
|
152 |
7.36 |
% |
|
8,194 |
|
|
145 |
7.02 |
% |
||||||||||||||
Total interest-earning assets ² |
|
1,332,002 |
|
|
13,259 |
3.96 |
% |
|
1,256,137 |
|
|
13,252 |
4.24 |
% |
|
1,098,938 |
|
|
14,520 |
5.31 |
% |
|
1,133,951 |
|
|
15,302 |
5.35 |
% |
|
1,150,501 |
|
|
15,934 |
5.49 |
% |
||||||||||||||
Total interest-earning assets exc. SBA PPP loans² |
|
1,239,609 |
|
|
12,657 |
4.06 |
% |
|
1,193,346 |
|
|
12,775 |
4.31 |
% |
|||||||||||||||||||||||||||||||||||
NONINTEREST-EARNING ASSETS | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash and due from banks |
|
10,685 |
|
|
8,224 |
|
|
9,056 |
|
|
9,084 |
|
|
9,769 |
|
||||||||||||||||||||||||||||||||||
Other noninterest-earning assets |
|
31,216 |
|
|
32,285 |
|
|
30,050 |
|
|
30,746 |
|
|
31,552 |
|
||||||||||||||||||||||||||||||||||
Total noninterest-earning assets |
|
41,901 |
|
|
40,509 |
|
|
39,106 |
|
|
39,830 |
|
|
41,321 |
|
||||||||||||||||||||||||||||||||||
Less: Allowance for loan losses |
|
(12,293 |
) |
|
(10,931 |
) |
|
(10,594 |
) |
|
(9,969 |
) |
|
(10,004 |
) |
||||||||||||||||||||||||||||||||||
TOTAL ASSETS | $ |
1,361,610 |
|
$ |
1,285,715 |
|
$ |
1,127,450 |
|
$ |
1,163,812 |
|
$ |
1,181,818 |
|
||||||||||||||||||||||||||||||||||
INTEREST-BEARING DEPOSITS | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing demand | $ |
11,248 |
|
$ |
4 |
0.14 |
% |
$ |
13,634 |
|
$ |
5 |
0.15 |
% |
$ |
12,041 |
|
$ |
5 |
0.17 |
% |
$ |
10,176 |
|
$ |
5 |
0.19 |
% |
$ |
8,453 |
|
$ |
5 |
0.23 |
% |
||||||||||||||
Money market |
|
200,878 |
|
|
404 |
0.80 |
% |
|
163,332 |
|
|
374 |
0.92 |
% |
|
116,550 |
|
|
401 |
1.38 |
% |
|
113,444 |
|
|
433 |
1.51 |
% |
|
130,079 |
|
|
596 |
1.82 |
% |
||||||||||||||
Savings |
|
67,880 |
|
|
154 |
0.90 |
% |
|
66,389 |
|
|
176 |
1.07 |
% |
|
66,955 |
|
|
251 |
1.51 |
% |
|
66,232 |
|
|
284 |
1.70 |
% |
|
55,995 |
|
|
283 |
2.01 |
% |
||||||||||||||
Time deposits |
|
452,950 |
|
|
1,790 |
1.57 |
% |
|
509,447 |
|
|
2,613 |
2.06 |
% |
|
555,784 |
|
|
3,297 |
2.39 |
% |
|
594,658 |
|
|
3,753 |
2.50 |
% |
|
630,044 |
|
|
4,051 |
2.55 |
% |
||||||||||||||
Total interest-bearing deposits |
|
732,956 |
|
|
2,352 |
1.28 |
% |
|
752,802 |
|
|
3,168 |
1.69 |
% |
|
751,330 |
|
|
3,954 |
2.12 |
% |
|
784,510 |
|
|
4,475 |
2.26 |
% |
|
824,571 |
|
|
4,935 |
2.37 |
% |
||||||||||||||
Borrowings |
|
147,149 |
|
|
206 |
0.56 |
% |
|
115,613 |
|
|
174 |
0.61 |
% |
|
9,874 |
|
|
27 |
1.10 |
% |
|
10,209 |
|
|
42 |
1.63 |
% |
|
10,000 |
|
|
42 |
1.67 |
% |
||||||||||||||
Total interest-bearing liabilities |
|
880,105 |
|
|
2,558 |
1.16 |
% |
|
868,415 |
|
|
3,342 |
1.55 |
% |
|
761,204 |
|
|
3,981 |
2.10 |
% |
|
794,719 |
|
|
4,517 |
2.25 |
% |
|
834,571 |
|
|
4,977 |
2.37 |
% |
||||||||||||||
Total interest-bearing liabilities exc. SBA PPP loan funding |
|
787,712 |
|
|
2,476 |
1.25 |
% |
|
805,624 |
|
|
3,287 |
1.64 |
% |
|||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits |
|
313,370 |
|
|
249,909 |
|
|
199,721 |
|
|
205,449 |
|
|
187,740 |
|
||||||||||||||||||||||||||||||||||
Other liabilities |
|
12,750 |
|
|
15,141 |
|
|
16,018 |
|
|
15,805 |
|
|
15,832 |
|
||||||||||||||||||||||||||||||||||
Stockholders' equity |
|
155,385 |
|
|
152,250 |
|
|
150,507 |
|
|
147,839 |
|
|
143,675 |
|
||||||||||||||||||||||||||||||||||
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ |
1,361,610 |
|
$ |
1,285,715 |
|
$ |
1,127,450 |
|
$ |
1,163,812 |
|
$ |
1,181,818 |
|
||||||||||||||||||||||||||||||||||
Net interest income² | $ |
10,701 |
$ |
9,910 |
$ |
10,539 |
$ |
10,785 |
$ |
10,957 |
|||||||||||||||||||||||||||||||||||||||
Net interest income exc. SBA PPP Loans² | $ |
10,181 |
$ |
9,488 |
|||||||||||||||||||||||||||||||||||||||||||||
Net interest spread | 2.80 |
% |
2.69 |
% |
3.21 |
% |
3.10 |
% |
3.12 |
% |
|||||||||||||||||||||||||||||||||||||||
Effect of noninterest-bearing sources | 0.40 |
% |
0.48 |
% |
0.65 |
% |
0.67 |
% |
0.66 |
% |
|||||||||||||||||||||||||||||||||||||||
Net interest margin² | 3.20 |
% |
3.17 |
% |
3.86 |
% |
3.77 |
% |
3.78 |
% |
|||||||||||||||||||||||||||||||||||||||
Net interest margin exc. SBA PPP loans² | 3.27 |
% |
3.20 |
% |
|||||||||||||||||||||||||||||||||||||||||||||
Cost of deposits | $ |
1,046,326 |
|
$ |
2,352 |
0.89 |
% |
$ |
1,002,711 |
|
$ |
3,168 |
1.27 |
% |
$ |
951,051 |
|
$ |
3,954 |
1.67 |
% |
$ |
989,959 |
|
$ |
4,475 |
1.79 |
% |
$ |
1,012,311 |
|
$ |
4,935 |
1.93 |
% |
||||||||||||||
Cost of funds | $ |
1,193,475 |
|
$ |
2,558 |
0.85 |
% |
$ |
1,118,324 |
|
$ |
3,342 |
1.20 |
% |
$ |
960,925 |
|
$ |
3,981 |
1.67 |
% |
$ |
1,000,168 |
|
$ |
4,517 |
1.79 |
% |
$ |
1,022,311 |
|
$ |
4,977 |
1.93 |
% |
||||||||||||||
Cost of funds exc. SBA ppp loan funding | $ |
1,101,082 |
|
$ |
2,476 |
0.89 |
% |
$ |
1,055,533 |
|
$ |
3,287 |
1.25 |
% |
|||||||||||||||||||||||||||||||||||
1 Includes loans held-for-sale | |||||||||||||||||||||||||||||||||||||||||||||||||
² Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate |
COMPONENTS OF YIELD ON LOANS (Unaudited) - Table 13 |
|||||||||||||||||||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||||||||||||||||
Three Months Ended |
|||||||||||||||||||||||||||||||||
September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | |||||||||||||||||||||||||||||
Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||
Contractual yield | $ |
11,522 |
4.38 |
% |
$ |
11,578 |
4.57 |
% |
$ |
12,445 |
|
5.32 |
% |
$ |
12,911 |
|
5.51 |
% |
$ |
13,481 |
|
5.74 |
% |
||||||||||
SBA discount accretion |
|
615 |
0.23 |
% |
|
662 |
0.26 |
% |
|
1,190 |
|
0.51 |
% |
|
1,195 |
|
0.51 |
% |
|
1,058 |
|
0.45 |
% |
||||||||||
Prepayment penalties & late fees |
|
221 |
0.09 |
% |
|
24 |
0.01 |
% |
|
106 |
|
0.04 |
% |
|
172 |
|
0.07 |
% |
|
82 |
|
0.03 |
% |
||||||||||
Amortization of net deferred costs |
|
292 |
0.11 |
% |
|
304 |
0.12 |
% |
|
(112 |
) |
(0.05 |
%) |
|
(159 |
) |
(0.07 |
%) |
|
(93 |
) |
(0.04 |
%) |
||||||||||
As reported yield on loans | $ |
12,650 |
4.81 |
% |
$ |
12,568 |
4.96 |
% |
$ |
13,629 |
|
5.82 |
% |
$ |
14,119 |
|
6.02 |
% |
$ |
14,528 |
|
6.18 |
% |
MARGIN ANALYSIS (Unaudited) - Table 14 | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||
September 30, 2020 | September 30, 2019 | ||||||||||||||||||||
Avg Balance | Interest | Yield | Avg Balance | Interest | Yield | ||||||||||||||||
Number of Days in the Period | |||||||||||||||||||||
INTEREST-EARNING ASSETS | |||||||||||||||||||||
Loans ¹ | $ |
1,002,303 |
|
$ |
38,847 |
5.18 |
% |
$ |
927,415 |
|
$ |
43,854 |
6.32 |
% |
|||||||
SBA PPP Loans |
|
51,876 |
|
|
1,079 |
2.78 |
% |
|
- |
|
|
- |
|||||||||
Investment securities² |
|
92,070 |
|
|
1,598 |
2.32 |
% |
|
100,878 |
|
|
2,020 |
2.68 |
% |
|||||||
Interest-earning deposits at the FRB and other banks |
|
126,835 |
|
|
291 |
0.31 |
% |
|
94,951 |
|
|
1,628 |
2.29 |
% |
|||||||
Other earning assets |
|
8,195 |
|
|
295 |
4.81 |
% |
|
8,066 |
|
|
407 |
6.75 |
% |
|||||||
Total interest-earning assets ² |
|
1,229,403 |
|
|
41,031 |
4.46 |
% |
|
1,131,310 |
|
|
47,909 |
5.66 |
% |
|||||||
Total interest-earning assets exc. SBA PPP loans² |
|
1,177,527 |
|
|
39,952 |
4.53 |
% |
||||||||||||||
NONINTEREST-EARNING ASSETS | |||||||||||||||||||||
Cash and due from banks |
|
9,327 |
|
|
11,214 |
|
|||||||||||||||
Other noninterest-earning assets |
|
31,124 |
|
|
30,697 |
|
|||||||||||||||
Total noninterest-earning assets |
|
40,451 |
|
|
41,911 |
|
|||||||||||||||
Less: Allowance for loan losses |
|
(11,277 |
) |
|
(9,918 |
) |
|||||||||||||||
TOTAL ASSETS | $ |
1,258,577 |
|
$ |
1,163,303 |
|
|||||||||||||||
INTEREST-BEARING DEPOSITS | |||||||||||||||||||||
Interest-bearing demand | $ |
12,303 |
|
$ |
14 |
0.15 |
% |
$ |
8,643 |
|
$ |
16 |
0.25 |
% |
|||||||
Money market |
|
160,402 |
|
|
1,179 |
0.98 |
% |
|
148,506 |
|
|
2,084 |
1.88 |
% |
|||||||
Savings |
|
67,078 |
|
|
581 |
1.16 |
% |
|
38,486 |
|
|
582 |
2.02 |
% |
|||||||
Time deposits |
|
505,867 |
|
|
7,700 |
2.03 |
% |
|
619,531 |
|
|
11,333 |
2.45 |
% |
|||||||
Total interest-bearing deposits |
|
745,650 |
|
|
9,474 |
1.70 |
% |
|
815,166 |
|
|
14,015 |
2.30 |
% |
|||||||
Borrowings |
|
91,084 |
|
|
407 |
0.60 |
% |
|
10,017 |
|
|
124 |
1.66 |
% |
|||||||
Total interest-bearing liabilities |
|
836,734 |
|
|
9,881 |
1.58 |
% |
|
825,183 |
|
|
14,139 |
2.29 |
% |
|||||||
Total interest-bearing liabilities exc. SBA PPP loans |
|
784,858 |
|
|
9,745 |
1.66 |
% |
||||||||||||||
Noninterest-bearing deposits |
|
254,549 |
|
|
184,804 |
|
|||||||||||||||
Other Liabilities |
|
14,571 |
|
|
14,335 |
|
|||||||||||||||
Stockholders' equity |
|
152,723 |
|
|
138,981 |
|
|||||||||||||||
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ |
1,258,577 |
|
$ |
1,163,303 |
|
|||||||||||||||
Net interest income² | $ |
31,150 |
$ |
33,770 |
|||||||||||||||||
Net interest income exc. SBA PPP loans² | $ |
30,207 |
|||||||||||||||||||
Net interest spread | 2.88 |
% |
3.37 |
% |
|||||||||||||||||
Effect of noninterest-bearing sources | 0.50 |
% |
0.62 |
% |
|||||||||||||||||
Net interest margin² | 3.38 |
% |
3.99 |
% |
|||||||||||||||||
Net interest margin exc. SBA PPP loans² | 3.43 |
% |
|||||||||||||||||||
Cost of deposits | $ |
1,000,199 |
|
$ |
9,474 |
1.27 |
% |
$ |
999,970 |
|
$ |
14,015 |
1.87 |
% |
|||||||
Cost of funds | $ |
1,091,283 |
|
$ |
9,881 |
1.21 |
% |
$ |
1,009,987 |
|
$ |
14,139 |
1.87 |
% |
|||||||
Cost of funds exc. SBA PPP loan funding | $ |
1,039,407 |
|
$ |
9,745 |
1.25 |
% |
||||||||||||||
1 Includes loans held-for-sale | |||||||||||||||||||||
² Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate |
COMPONENTS OF YIELD ON LOANS (Unaudited) - Table 15 | ||||||||||||||
(Dollars in thousands) | ||||||||||||||
Nine Months Ended | ||||||||||||||
September 30, 2020 | September 30, 2019 | |||||||||||||
Amount | Yield | Amount | Yield | |||||||||||
Contractual yield | $ |
35,545 |
4.74 |
% |
$ |
40,826 |
|
5.88 |
% |
|||||
SBA discount accretion |
|
2,467 |
0.33 |
% |
|
3,304 |
|
0.48 |
% |
|||||
Prepayment penalties & late fees |
|
351 |
0.05 |
% |
|
193 |
|
0.03 |
% |
|||||
Amortization of net deferred costs |
|
484 |
0.06 |
% |
|
(469 |
) |
(0.07 |
%) |
|||||
As reported yield on loans | $ |
38,847 |
5.18 |
% |
$ |
43,854 |
|
6.32 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20201029005031/en/
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