Market Overview

Two River Bancorp Reports 2019 Third Quarter Financial Results

Share:

TINTON FALLS, N.J., Oct. 22, 2019 (GLOBE NEWSWIRE) -- Two River Bancorp (NASDAQ:TRCB) (the "Company"), the parent company of Two River Community Bank (the "Bank"), today reported financial results for the third quarter and nine months ended September 30, 2019.

2019 Third Quarter Financial Highlights
(comparisons to 2018 third quarter)

  • Announced the signing of a definitive merger agreement with OceanFirst Financial Corp. (NASDAQ:OCFC) ("OceanFirst"), parent company of OceanFirst Bank N.A. ("OceanFirst Bank").
  • Net income was $2.1 million, or $0.24 per diluted share, as the Company incurred $828,000, or $662,000 after-tax, in expenses relating to the Company's pending merger with OceanFirst and a $411,000, or $288,000 after-tax, write-down on an OREO property. These expenses impacted several metrics within the quarter and year-to-date.
  • Excluding the aforementioned expenses, 2019 third quarter net income was $3.1 million, or $0.35 per diluted share.
  • Return on average assets was 0.73%, compared to 1.04%
  • Return on average equity was 6.84%, compared to 9.98%
  • Net interest margin decreased 15 basis points to 3.40%
  • Efficiency ratio(1) was 70.22%, compared to 61.78%

(Totals at September 30, 2019; comparisons to December 31, 2018)

  • Total loans were $959.9 million, an increase of $38.6 million, or 5.6% annualized
  • Total deposits were $963.3 million, an increase of $45.9 million, or 6.7% annualized
  • Total assets were $1.147 billion, compared to $1.096 billion
  • Tangible book value per share(2) increased to $12.08, compared to $11.43

(1) Efficiency ratio represents the ratio of non-interest expense to the sum of net interest income and non-interest income.
(2) Non-GAAP Financial Information. See "Reconciliation of Non-GAAP Financial Measures" at end of release.

Management Commentary
William D. Moss, Chairman, President, and CEO, stated, "We were pleased to report solid core profitability and book value growth despite higher expenses related to the Company's pending merger and write-down on one of our OREO properties. Our loan growth of $6.8 million for the quarter was tempered by larger than expected payoffs, much of which is the result of the completion and ultimate sale of several construction loan projects."

Dividend Information
On October 16, 2019, the Company's Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on November 29, 2019 to shareholders of record as of the close of business on November 6, 2019. This marks the 27th consecutive quarterly cash dividend.

               
Key Quarterly Performance Metrics            9 Mo.  9 Mo. 
  3rd Qtr.
2nd Qtr.
1st Qtr.
4th Qtr.
3rd Qtr.
Ended
Ended
2019
2019
2019
2018
2018
9/30/2019
9/30/2018
Net Income (in thousands) $2,115   $3,048   $2,783   $3,046   $2,834   $7,946   $8,160  
Earnings per Common Share – Diluted $0.24   $0.35   $0.32   $0.35   $0.33   $0.91   $0.94  
Return on Average Assets 0.73 % 1.07 % 1.01 % 1.10 % 1.04 % 0.93 % 1.03 %
Return on Average Tangible Assets(1) 0.74 % 1.08 % 1.02 % 1.11 % 1.06 % 0.95 % 1.04 %
Return on Average Equity 6.84 % 10.18 % 9.59 % 10.52 % 9.98 % 8.84 % 9.91 %
Return on Average Tangible Equity(1) 8.03 % 11.98 % 11.33 % 12.49 % 11.90 % 10.41 % 11.86 %
Net Interest Margin 3.40 % 3.54 % 3.60 % 3.56 % 3.55 % 3.51 % 3.59 %
Efficiency Ratio(2) 70.22 % 59.58 % 59.95 % 60.69 % 61.78 % 63.20 % 61.99 %
Non-Performing Assets to Total Assets 0.33 % 0.37 % 0.39 % 0.18 % 0.18 % 0.33 % 0.18 %
Allowance as a % of Loans 1.23 % 1.23 % 1.22 % 1.24 % 1.26 % 1.23 % 1.26 %
 
(1)  Non-GAAP Financial Information. See "Reconciliation of Non-GAAP Financial Measures" at end of release.
(2)  Efficiency ratio represents the ratio of non-interest expense to the sum of net interest income and non-interest income.
 

Loan Composition
The components of the Company's loan portfolio at September 30, 2019 and December 31, 2018 are as follows:

             
    (in thousands)
       
    September 30,
2019
    December 31,
2018
    %
Change
 
Commercial and industrial   $   107,944     $ 109,362     (1.3 )%
Real estate – construction     144,577       144,865     (0.2 )%
Real estate – commercial     579,214       552,549     4.8 %
Real estate – residential     98,047       84,123     16.6 %
Consumer     30,791       31,144     (1.1 )%
Unearned fees     (709 )     (742 )   (4.5 )%
      959,864       921,301     4.2 %
Allowance for loan losses     (11,811 )  
View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com