Market Overview

Bankwell Financial Group Reports First Quarter Net Income of $4.6 Million or $0.59 Per Share, Representing 24% Year over Year Growth and Declares Second Quarter Dividend

Share:

Bankwell Financial Group, Inc. (NASDAQ:BWFG) reported GAAP net income of
$4.6 million or $0.59 per share for the first quarter of 2018, versus
$3.7 million or $0.48 per share for the same period in 2017.

The Company's Board of Directors declared a $0.12 per share cash
dividend, payable May 25, 2018 to shareholders of record on May 15, 2018.

Notes Bankwell Financial Group President and CEO, Christopher R. Gruseke:

"We are happy to announce year over year earnings growth of 24% for the
first quarter of 2018. Acknowledging that the lower corporate tax rate
played a significant role, Bankwell nevertheless achieved solid organic
growth in the face of a more competitive lending environment and several
non-recurring charges."

"The heightened volatility experienced across the capital markets during
the first quarter acted as a headwind against the lending environment in
general. Further, while too many banking institutions have seemingly
demonstrated how recent tax cuts will impact their business models,
Bankwell chose not to participate in a race to the bottom in lending
spreads. We will continue our disciplined practice toward lending rates
as we have never chosen to compete on price. Thus far, our pipeline
suggests improved volume at more favorable spreads for the second
quarter."

"We note that our efficiency ratio took an uncharacteristic increase
this quarter versus Q1'17. Several factors contributed to this increase:
1) non-recurring expenses, such as a $363 thousand increase in
professional fees, as well as approximately $300 thousand in loan
origination costs, which could not be deferred due to lower loan volume,
2) forgone interest income on approximately $14 million in new
non-performing loans (see below), and 3) planned investment in people
and infrastructure, primarily geared toward deposit gathering
activities."

"The first quarter also saw an addition of approximately $14 million in
non-performing loans due to two recently impaired commercial loans with
balances of approximately $10 million and $4 million, respectively. We
are in the process of evaluating the various pathways to repayment on
these credits and will provide an update in our next quarterly release."

"Finally, the next quarter will also see three new Bankwell branches
open within our footprint in Fairfield County, CT. We are excited to
bring the Bankwell brand to these towns and expect those new customers
will agree with their neighboring communities who have just voted
Bankwell the "#1 Bank in Fairfield County for Customer Service."

First Quarter 2018 Highlights:

  • First quarter total revenue (net interest income plus non-interest
    income) was $15.0 million versus $14.2 million in the same period last
    year, a 6% increase.
  • First quarter diluted earnings per share were $0.59, an increase of
    23% compared to the first quarter of 2017.
  • Return on average assets reached 1.03% for the quarter ended March 31,
    2018 compared to 0.93% for the quarter ended March 31, 2017.
  • Return on average tangible common equity reached 11.56% in the first
    quarter of 2018 compared to 10.33% for the quarter ended March 31,
    2017.
  • The tangible book value per common share at March 31, 2018 was $21.12,
    a 9% increase over March 31, 2017.
  • Tax equivalent net interest margin was 3.15% for the first quarter of
    2018.
  • Total gross loans approached $1.6 billion for the first quarter of
    2018.
  • Total assets surpassed $1.8 billion and grew at an annualized rate of
    8% during the first quarter of 2018.
  • Total deposits exceeded $1.4 billion and grew at an annualized rate of
    8% during the first quarter of 2018.
  • The allowance for loan losses was $18.8 million and represents 1.21%
    of total loans.
  • Investment securities totaled $120.6 million and represent 7% of total
    assets.

Earnings

Net income for the quarter ended March 31, 2018 was $4.6 million, an
increase of 24% compared to the quarter ended March 31, 2017. Revenues
(net interest income plus non-interest income) for the quarter ended
March 31, 2018 were $15.0 million, an increase of 6% compared to the
quarter ended March 31, 2017. Net interest income for the quarter ended
March 31, 2018 was $13.7 million, an increase of 6% compared to the
quarter ended March 31, 2017. The increase in net income was driven by
an increase in interest and fees on loans and from a reduction in the
corporate tax rate from 35% to 21% resulting from 2017 tax reform. The
increase in interest and fees on loans was a result of commercial real
estate and commercial business loan growth as compared to March 31, 2017.

Basic and diluted earnings per share were each $0.59 for the quarter
ended March 31, 2018 compared to $0.49 and $0.48, respectively, for the
quarter ended March 31, 2017.

The Company's efficiency ratio for the quarters ended March 31, 2018 and
March 31, 2017 were 62.0% and 58.3%, respectively. The increase in the
efficiency ratio was driven by an increase in noninterest expense. The
temporary increase in noninterest expense reflected a nonrecurring
increase in audit related expenses and a ramp up of costs associated
with the opening of three new branch locations, which are expected to
open in the second quarter of 2018.

Noninterest Income and Expense

Noninterest income increased $67 thousand or 5% to $1.3 million for the
three months ended March 31, 2018 compared to the three months ended
March 31, 2017. The increase in noninterest income was primarily driven
by an increase in gains and fees from the sales of loans and a net gain
on the sale of available for sale securities. Gain and fees from the
sale of loans totaled $370 thousand for the quarter ended March 31, 2018
compared to $324 thousand for the same period in 2017, an increase of
$46 thousand. The net gain on the sale of available for sale securities
totaled $222 thousand for the quarter ended March 31, 2018 compared to a
net gain on the sale of available for sale securities of $165 thousand
for the same period in 2017.

Noninterest expense increased $969 thousand or 12% for the three months
ended March 31, 2018 compared to the three months ended March 31, 2017.
The increase was primarily driven by an increase in salaries and
employee benefits and an increase in professional services. Salaries and
employee benefits totaled $5.0 million for the quarter ended March 31,
2018 compared to $3.9 million for the same period in 2017, an increase
of $1.1 million. The increase in salaries and employee benefits was
primarily driven by an increase in full time equivalent employees and a
reduction in deferred loan origination costs resulting from lower loan
volume. The increase in full time equivalent employees is in line with
year over year business growth and to a lesser degree, buildup of
staffing for the three new branch locations expected to open in the
second quarter of 2018. Full time equivalent employees totaled 144 at
March 31, 2018 compared to 127 at March 31, 2017. Professional services
totaled $775 thousand for the quarter ended March 31, 2018 compared to
$412 thousand for the same period in 2017, an increase of $363 thousand.
The increase in professional services was primarily driven by increases
in audit related expenses.

Financial Condition

Assets totaled $1.83 billion at March 31, 2018, an annualized increase
of 8% compared to assets of $1.80 billion at December 31, 2017. Total
gross loans were $1.6 billion at March 31, 2018, an increase of $13.4
million compared to December 31, 2017, driven by disciplined growth in
commercial real estate loans. Deposits increased to $1.43 billion, an
annualized increase of 8% over December 31, 2017.

Asset Quality

Non-performing assets as a percentage of total assets was 1.14% at March
31, 2018, up from 0.31% at December 31, 2017. The increase in
non-performing assets is primarily driven by two recently impaired
commercial real estate loans. The allowance for loan losses was $18.8
million, representing 1.21% of total loans and $18.9 million,
representing 1.23% of total loans at March 31, 2018 and December 31,
2017, respectively.

Capital

Shareholders' equity totaled $165.9 million as of March 31, 2018, an
increase of $4.9 million compared to December 31, 2017, primarily a
result of net income for the quarter ended March 31, 2018 of $4.6
million. As of March 31, 2018, the tangible common equity ratio and
tangible book value per share were 8.92% and $21.12, respectively.

About Bankwell Financial Group

Bankwell is a commercial bank that serves the banking and lending needs
of residents and businesses throughout Fairfield and New Haven Counties,
CT. For more information about this press release, interested parties
may contact Christopher R. Gruseke, President and Chief Executive
Officer or Penko Ivanov, Executive Vice President and Chief Financial
Officer of Bankwell Financial Group at (203) 652-0166.

For more information, visit www.mybankwell.com.

This press release may contain certain forward-looking statements
about the Company. Forward-looking statements include statements
regarding anticipated future events and can be identified by the fact
that they do not relate strictly to historical or current facts. They
often include words such as "believe," "expect," "anticipate,"
"estimate," and "intend" or future or conditional verbs such as "will,"
"would," "should," "could," or "may." Forward-looking statements, by
their nature, are subject to risks and uncertainties. Certain factors
that could cause actual results to differ materially from expected
results include increased competitive pressures, changes in the interest
rate environment, general economic conditions or conditions within the
securities markets, and legislative and regulatory changes that could
adversely affect the business in which the Company and its subsidiaries
are engaged.

Non-GAAP Financial Measures

In addition to evaluating the Company's financial performance in
accordance with U.S. generally accepted accounting principles ("GAAP"),
management may evaluate certain non-GAAP financial measures, such as the
efficiency ratio. A computation and reconciliation of certain non-GAAP
financial measures used for these purposes is contained in the
accompanying Reconciliation of GAAP to Non-GAAP Measures table. We
believe that providing certain non-GAAP financial measures provides
investors with information useful in understanding our financial
performance, our performance trends and financial position. For example,
the Company believes that the efficiency ratio is useful in the
assessment of financial performance, including non-interest expense
control. The Company believes that tangible common equity and tangible
book value per share is useful to evaluate the relative strength of the
Company's capital position. We utilize these measures for internal
planning and forecasting purposes. These non-GAAP financial measures
should not be considered a substitute for GAAP basis measures and
results, and we strongly encourage investors to review our consolidated
financial statements in their entirety and not to rely on any single
financial measure.

 
 
BANKWELL FINANCIAL GROUP, INC.
CONSOLIDATED BALANCE SHEETS (unaudited)
(Dollars in thousands, except share data)
       
March 31, December 31, March 31,
2018 2017 2017
Assets
Cash and due from banks $ 81,249 $ 70,545 $ 63,675
Federal funds sold   2,121   186   10,280
Cash and cash equivalents 83,370 70,731 73,955
 
Available for sale investment securities, at fair value 99,050 92,188 87,434
Held to maturity investment securities, at amortized cost 21,546 21,579 16,808
Loans receivable (net of allowance for loan losses of $18,801,
$18,904
and $18,511 at March 31, 2018, December 31, 2017
and March 31, 2017, respectively) 1,534,565 1,520,879 1,406,407
Foreclosed real estate 487 - 272
Accrued interest receivable 5,331 5,910 5,180
Federal Home Loan Bank stock, at cost 9,310 9,183 8,033
Premises and equipment, net 19,207 18,196 17,618
Bank-owned life insurance 39,880 39,618 38,740
Goodwill 2,589 2,589 2,589
Other intangible assets 358 382 469
Deferred income taxes, net 4,716 4,904 8,954
Other assets   10,834   10,448   5,783
Total assets $ 1,831,243 $ 1,796,607 $ 1,672,242
 
Liabilities & Shareholders' Equity
Liabilities
Deposits
Noninterest-bearing $ 161,641 $ 172,638 $ 170,572
Interest-bearing   1,264,886   1,225,767   1,156,888
Total deposits 1,426,527 1,398,405 1,327,460
 
Advances from the Federal Home Loan Bank 199,000 199,000 160,000
Subordinated debentures 25,116 25,103 25,064
Accrued expenses and other liabilities   14,653   13,072   10,046
Total liabilities   1,665,296   1,635,580   1,522,570
 
 
Shareholders' equity
Common stock, no par value; 10,000,000 shares authorized,
7,831,804, 7,751,424 and 7,638,706 shares issued
and outstanding at March 31, 2018, December 31, 2017
and March 31, 2017, respectively 119,363 118,301 115,823
Retained earnings 44,695 41,032 32,820
Accumulated other comprehensive income   1,889   1,694   1,029
Total shareholders' equity   165,947   161,027   149,672
 
Total liabilities and shareholders' equity $ 1,831,243 $ 1,796,607 $ 1,672,242
 
 
BANKWELL FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(Dollars in thousands, except per share data)
       
For the Quarter Ended
March 31, December 31, March 31,
2018 2017 2017
Interest and dividend income
Interest and fees on loans $ 17,418 $ 17,493 $ 15,513
Interest and dividends on securities 935 947 809
Interest on cash and cash equivalents   254   289     114
Total interest income   18,607   18,729     16,436
 
Interest expense
Interest expense on deposits 3,656 3,602 2,581
Interest on borrowings   1,246   1,213     907
Total interest expense   4,902   4,815     3,488
 
Net interest income 13,705 13,914 12,948
 
Provision (Credit) for loan losses   13   (495 )   543
 
Net interest income after provision for loan losses   13,692   14,409     12,405
 
Noninterest income
Gains and fees from sales of loans 370 868 324
Bank owned life insurance 263 289 291
Service charges and fees 256 252 240
Net gain on sale of available for sale securities 222 - 165
Loss on sale of foreclosed real estate, net - (78 ) -
Other   222   210     246
Total noninterest income   1,333   1,541     1,266
 
Noninterest expense
Salaries and employee benefits 5,028 4,603 3,929
Occupancy and equipment 1,617 1,585 1,692
Professional services 775 457 412
Data processing 525 399 445
Marketing 297 321 266
Director fees 215 229 233
FDIC insurance 214 225 383
Amortization of intangibles 24 25 31
Foreclosed real estate - - 7
Other   508   735     836
Total noninterest expense   9,203   8,579     8,234
 
Income before income tax expense 5,822 7,371 5,437
 
Income tax expense   1,222   5,275     1,735
 
Net income $ 4,600 $ 2,096   $ 3,702
 
 
Earnings Per Common Share:
Basic $ 0.59 $ 0.27 $ 0.49
Diluted 0.59 0.27 0.48
 
Weighted Average Common Shares Outstanding:
Basic 7,676,813 7,624,931 7,525,268
Diluted 7,722,120 7,702,770 7,632,123
Dividends per common share $ 0.12 $ 0.07 $ 0.07
 
 
BANKWELL FINANCIAL GROUP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)
(Dollars in thousands, except per share data)
         
For the Quarter Ended
March 31, December 31, March 31,
2018 2017 2017
Performance ratios:
Return on average assets * 1.03% 0.46% 0.93%
Return on average stockholders' equity * 11.35% 5.15% 10.12%
Return on average tangible common equity * 11.56% 5.25% 10.33%
Net interest margin 3.15% 3.23% 3.35%
Efficiency ratio (1) 62.0% 55.1% 58.3%
 
Net loan charge-offs as a % of average loans 0.01% 0.01% 0.00%
 

* All metrics, as of December 31, 2017, measuring return were
significantly impacted by certain non-recurring items, including $3.3
million for a write-down of our deferred tax asset resulting from tax
reform, ($0.9) million for a change in loan reserve methodology, ($0.6)
million resulting from income recognized from servicing assets and $0.2
million resulting from charges due to reductions in workforce. Excluding
the non-recurring items, the company's return on average assets, return
on average stockholders' equity and return on average tangible common
equity would have been approximately 0.90%, 10.05% and 10.24% for the
quarter ended December 31, 2017.

    As of
March 31,

2018

  December 31,

2017

  March 31,

2017

Capital ratios:
Total Common Equity Tier 1 Capital to Risk-Weighted Assets (2) 11.18% 10.99% 11.16%
Total Capital to Risk-Weighted Assets (2) 12.35% 12.19% 12.41%
Tier I Capital to Risk-Weighted Assets (2) 11.18% 10.99% 11.16%
Tier I Capital to Average Assets (2) 9.90% 9.61% 10.06%
Tangible common equity to tangible assets 8.92% 8.81% 8.78%
 
Tangible book value per common share (3) $ 21.12 $ 20.59 $ 19.44
 
Asset quality:
Nonaccrual loans $ 20,374 $ 5,481 $ 4,434
Other real estate owned 487 - 272
Total non-performing assets $ 20,861 $ 5,481 $ 4,706
 
 
Nonperforming loans as a % of total loans 1.31% 0.36% 0.31%
 
Nonperforming assets as a % of total assets 1.14% 0.31% 0.28%
 
Allowance for loan losses as a % of total loans 1.21% 1.23% 1.30%
 
Allowance for loan losses as a % of nonperforming loans 92.28% 344.90% 417.48%
 
(1) Efficiency ratio is defined as noninterest expense, less other
real estate owned expenses and amortization of intangible assets,
divided by our operating revenue, which is equal to net interest
income plus non-interest income excluding gains and losses on sales
of securities and gains and losses on other real estate owned. In
our judgment, the adjustments made to operating revenue allow
investors and analysts to better assess our operating expenses in
relation to our core operating revenue by removing the volatility
that is associated with certain one-time items and other discrete
items that are unrelated to our core business.
 
(2) Represents Bank ratios. Current period capital ratios are
preliminary subject to finalization of the FDIC Call Report.
 
(3) Excludes unvested restricted shares of 114,336, 75,186, and
98,176 as of March 31, 2018, December 31, 2017 and March 31, 2017,
respectively.
 
 
BANKWELL FINANCIAL GROUP, INC.
LOAN & DEPOSIT PORTFOLIO (unaudited)
(Dollars in thousands)
         
March 31, December 31, Current QTD
Period End Loan Composition 2018 2017 % Change
Residential Real Estate $ 195,638 $ 193,524 1.1 %
Commercial Real Estate 1,005,962 987,242 1.9 %
Construction   87,309   101,636 (14.1 %)

Total Real Estate Loans

1,288,909 1,282,402 0.5 %
 
Commercial Business 267,052 259,995 2.7 %
 
Consumer   446   619 (27.9 %)
Total Loans $ 1,556,407 $ 1,543,016 0.9 %
 
March 31, December 31, Current QTD
Period End Deposit Composition 2018 2017 % Change
Noninterest-bearing demand $ 161,641 $ 172,638 (6.4 %)
NOW 58,416 58,942 (0.9 %)
Money Market 479,524 451,804 6.1 %
Savings 96,664 83,758 15.4 %
Time   630,282   631,263 (0.2 %)
Total Deposits $ 1,426,527 $ 1,398,405 2.0 %
 
 
BANKWELL FINANCIAL GROUP, INC.
NONINTEREST INCOME & EXPENSE - QTD (unaudited)
(Dollars in thousands)
           
For the Quarter Ended
Noninterest income March 31, December 31, March 31, Mar 18 vs. Dec 17 Mar 18 vs. Mar 17
2018 2017   2017 % Change % Change
Gains and fees from sales of loans $ 370 $ 868 $ 324 (57.4%) 14.2%
Bank owned life insurance 263 289 291 (9.0%) (9.6%)
Service charges and fees 256 252 240 1.6% 6.7%
Net gain on sale of available for sale securities 222 - 165 100.0% 34.5%
Loss on sale of foreclosed real estate, net - (78) - (100.0%) 0.0%
Other   222   210   246 5.7% (9.8%)
Total noninterest income $ 1,333 $ 1,541 $ 1,266 (13.5%) 5.3%
 
 
For the Quarter Ended
Noninterest expense March 31, December 31, March 31, Mar 18 vs. Dec 17 Mar 18 vs. Mar 17
2018 2017 2017 % Change % Change
Salaries and employee benefits $ 5,028 $ 4,603 $ 3,929 9.2% 28.0%
Occupancy and equipment 1,617 1,585 1,692 2.0% (4.4%)
Professional services 775 457 412 69.6% 88.1%
Data processing 525 399 445 31.6% 18.0%
Marketing 297 321 266 (7.5%) 11.7%
Director fees 215 229 233 (6.1%) (7.7%)
FDIC insurance 214 225 383 (4.9%) (44.1%)
Amortization of intangibles 24 25 31 (4.0%) (22.6%)
Foreclosed real estate - - 7 0.0% (100.0%)
Other   508   735   836 (30.9%) (39.2%)
Total noninterest expense $ 9,203 $ 8,579 $ 8,234 7.3% 11.8%
 
 
BANKWELL FINANCIAL GROUP, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited)
(Dollars in thousands, except share data)
       
 
As of
Computation of Tangible Common Equity to Tangible Assets March 31, December 31, March 31,
2018 2017 2017
Total Equity $ 165,947 $ 161,027 $ 149,672
Less:
Goodwill 2,589 2,589 2,589
Other intangibles   358     382     469  
Tangible Common Equity $ 163,000   $ 158,056   $ 146,614  
 
Total Assets $ 1,831,243 $ 1,796,607 $ 1,672,242
Less:
Goodwill 2,589 2,589 2,589
Other intangibles   358     382     469  
Tangible Assets $ 1,828,296   $ 1,793,636   $ 1,669,184  
 
Tangible Common Equity to Tangible Assets 8.92 % 8.81 % 8.78 %
 
 
As of
Computation of Tangible Book Value per Common Share March 31, December 31, March 31,
2018 2017 2017
Total shareholders' equity $ 165,947 $ 161,027 $ 149,672
Less:
Preferred stock   -     -     -  
Common shareholders' equity 165,947 161,027 149,672
Less:
Goodwill 2,589 2,589 2,589
Other intangibles   358     382     469  
Tangible common shareholders' equity 163,000 158,056 146,614
Common shares issued 7,831,804 7,751,424 7,638,706
Less:
Shares of unvested restricted stock   114,336     75,186     98,176  
Common shares outstanding 7,717,468 7,676,238 7,540,530
Book value per share $ 21.50 $ 20.98 $ 19.85
Less:
Effects of intangible assets $ 0.38 $ 0.39 $ 0.41
 
Tangible Book Value per Common Share $ 21.12 $ 20.59 $ 19.44
         
 
BANKWELL FINANCIAL GROUP, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited) - Continued
(Dollars in thousands, except share data)
 
For the Quarter Ended
Computation of Efficiency Ratio March 31, December 31, March 31,
2018 2017 2017
Noninterest expense $ 9,203 $ 8,579 $ 8,234
Less:
Amortization of intangible assets 24 25 31
Foreclosed real estate expenses   -     -     7  
Adjusted noninterest expense $ 9,179   $ 8,554   $ 8,196  
Net interest income $ 13,705 $ 13,914 $ 12,948
Noninterest income 1,333 1,541 1,266
Less:
Gains on sales of securities 222 - 165
Loss on sale of foreclosed real estate   -     (78 )   -  
Adjusted operating revenue $ 14,816   $ 15,533   $ 14,049  
 
Efficiency ratio 62.0 % 55.1 % 58.3 %
 
 
For the Quarter Ended
Computation of Return on Average Tangible Common Equity March 31, December 31, March 31,
2018 2017 2017
Net Income Attributable to Common Shareholders $ 4,600   $ 2,096   $ 3,702  
Total average shareholders' equity $ 164,369 $ 161,477 $ 148,349
Less:
Goodwill 2,589 2,589 2,589
Other intangibles   358     382     469  
Average tangible common equity $ 161,422   $ 158,506   $ 145,291  
 
Annualized Return on Average Tangible Common Equity 11.56 % 5.25 % 10.33 %
 
 
BANKWELL FINANCIAL GROUP, INC.
NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS
(Dollars in thousands)
               
For the Quarter Ended
March 31, 2018 March 31, 2017
Average Yield/ Average Yield/
Balance Interest Rate (5) Balance Interest Rate (5)
Assets:
Cash and Fed funds sold $ 69,164 $ 254 1.49 % $ 68,416 $ 114 0.68 %
Securities (1) 117,084 888 3.04 % 101,857 861 3.38 %
Loans:
Commercial real estate 976,294 10,868 4.45 % 854,733 9,684 4.53 %
Residential real estate 197,897 1,799 3.64 % 193,500 1,740 3.60 %
Construction (2) 95,384 1,146 4.81 % 105,320 1,249 4.74 %
Commercial business 280,812 3,597 5.12 % 228,422 2,826 4.95 %
Consumer   637   8 4.97 %   1,690   14 3.47 %
Total loans 1,551,024 17,418 4.49 % 1,383,665 15,513 4.48 %
Federal Home Loan Bank stock   9,306   118 5.12 %   8,020   79 3.98 %
Total earning assets 1,746,578 $ 18,678 4.28 % 1,561,958 $ 16,567 4.24 %
Other assets   66,794   59,681
Total assets $ 1,813,372 $ 1,621,639
 
Liabilities and shareholders' equity:
Interest-bearing liabilities:
NOW $ 58,329 $ 19 0.13 % $ 54,593 $ 27 0.20 %
Money market 466,653 1,162 1.01 % 343,992 566 0.67 %
Savings 93,947 196 0.85 % 111,012 185 0.68 %
Time   625,728   2,280 1.48 %   595,452   1,803 1.23 %
Total interest-bearing deposits 1,244,657 3,657 1.19 % 1,105,049 2,581 0.95 %
Borrowed Money   224,108   1,246 2.22 %   182,053   907 1.99 %
Total interest-bearing liabilities 1,468,765 $ 4,903 1.35 % 1,287,102 $ 3,488 1.10 %
Noninterest-bearing deposits 166,289 174,795
Other liabilities   13,949   11,393
Total liabilities 1,649,003 1,473,290
Shareholders' equity   164,369   148,349
Total liabilities and shareholders' equity $ 1,813,372 $ 1,621,639
Net interest income (3) $ 13,775 $ 13,079
Interest rate spread 2.93 % 3.14 %
Net interest margin (4) 3.15 % 3.35 %
 
(1) Average balances and yields for securities are based on
amortized cost.
(2) Includes commercial and residential real estate construction.
(3) The adjustment for securities and loans taxable equivalency
amounted to $70 thousand and $131 thousand, respectively for the
quarters ended March 31, 2018 and 2017.
(4) Net interest income as a percentage of earning assets.
(5) Yields are calculated using the contractual day count convention
for each respective product type.
 

View Comments and Join the Discussion!