☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OF 15(d) OR THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Common Stock, No Par Value | CALB | NASDAQ Global Select Market | ||
(Title of class) | (Trading Symbol) | (Name of exchange on which registered) |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
Page | ||||||||
Item 1. | Financial Statements | 3 | ||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | |||||||
Item 4. | Controls and Procedures | |||||||
Item 1. | Legal Proceedings | |||||||
Item 1A. | Risk Factors | |||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |||||||
Item 3. | Defaults Upon Senior Securities | |||||||
Item 4. | Mine Safety Disclosures | |||||||
Item 5. | Other Information | |||||||
Item 6. | Exhibits | |||||||
49 |
March 31, 2021 | December 31, 2020 | |||||||
ASSETS: | ||||||||
Cash and due from banks | $ | 18,475 | $ | 22,485 | ||||
Federal funds sold | 342,305 | 396,032 | ||||||
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Total cash and cash equivalents | 360,780 | 418,517 | ||||||
Investment securities, available for sale | 58,105 | 55,093 | ||||||
Loans, net of allowance for losses of $14,577 and $14,111 at March 31, 2021 and December 31, 2020, respectively | 1,454,167 | 1,355,482 | ||||||
Premises and equipment, net | 5,452 | 5,778 | ||||||
Bank owned life insurance (BOLI) | 23,920 | 23,718 | ||||||
Goodwill and other intangible assets | 7,544 | 7,554 | ||||||
Accrued interest receivable and other assets | 37,620 | 39,637 | ||||||
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Total assets | $ | 1,947,588 | $ | 1,905,779 | ||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY: | ||||||||
Deposits | ||||||||
Non-interest bearing | $ | 742,574 | $ | 673,100 | ||||
Interest bearing | 887,141 | 859,106 | ||||||
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Total deposits | 1,629,715 | 1,532,206 | ||||||
Other borrowings | 134,819 | 189,043 | ||||||
Junior Subordinated debt securities | 24,729 | 24,994 | ||||||
Accrued interest payable and other liabilities | 19,147 | 23,126 | ||||||
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Total liabilities | 1,808,410 | 1,769,369 | ||||||
Commitments and Contingencies (Note 5) | ||||||||
Shareholders’ equity | ||||||||
Common stock, no par value; 40,000,000 shares authorized; 8,189,598 and 8,171,734 issued and outstanding at March 31, 2021 and December 31, 2020, respectively | 108,430 | 107,948 | ||||||
Retained earnings | 30,630 | 27,821 | ||||||
Accumulated other comprehensive income, net of taxes | 118 | 641 | ||||||
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Total shareholders’ equity | 139,178 | 136,410 | ||||||
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Total liabilities and shareholders’ equity | $ | 1,947,588 | $ | 1,905,779 | ||||
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September 30, 2021 | December 31, 2020 | |||||||
ASSETS: | ||||||||
Cash and due from banks | $ | 22,424 | $ | 22,485 | ||||
Federal funds sold | 578,626 | 396,032 | ||||||
Total cash and cash equivalents | 601,050 | 418,517 | ||||||
Investment securities, available for sale | 82,108 | 55,093 | ||||||
Loans, net of allowance for losses of $13,571 and $14,111 at September 30, 2021 and December 31, 2020, respectively | 1,289,161 | 1,355,482 | ||||||
Premises and equipment, net | 4,227 | 5,778 | ||||||
Bank owned life insurance (BOLI) | 24,247 | 23,718 | ||||||
Goodwill and other intangible assets | 7,524 | 7,554 | ||||||
Accrued interest receivable and other assets | 40,762 | 39,637 | ||||||
Total assets | $ | 2,049,079 | $ | 1,905,779 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY: | ||||||||
Deposits | ||||||||
Non-interest bearing | $ | 790,646 | $ | 673,100 | ||||
Interest bearing | 951,408 | 859,106 | ||||||
Total deposits | 1,742,054 | 1,532,206 | ||||||
Other borrowings | 79,536 | 189,043 | ||||||
Junior subordinated debt securities | 59,009 | 24,994 | ||||||
Accrued interest payable and other liabilities | 21,241 | 23,126 | ||||||
Total liabilities | 1,901,840 | 1,769,369 | ||||||
Commitments and Contingencies (Note 5) | 0 | 0 | ||||||
Shareholders’ equity | ||||||||
Common stock, 0 par value; 40,000,000 shares authorized; 8,250,109 and 8,171,734 issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 109,009 | 107,948 | ||||||
Retained earnings | 38,008 | 27,821 | ||||||
Accumulated other comprehensive income, net of taxes | 222 | 641 | ||||||
Total shareholders’ equity | 147,239 | 136,410 | ||||||
Total liabilities and shareholders’ equity | $ | 2,049,079 | $ | 1,905,779 | ||||
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Interest income | ||||||||
Loans | $ | 14,584 | $ | 11,783 | ||||
Federal funds sold | 88 | 329 | ||||||
Investment securities | 360 | 191 | ||||||
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Total interest income | 15,032 | 12,303 | ||||||
Interest expense | ||||||||
Deposits | 1,191 | 1,994 | ||||||
Borrowings and subordinated debt | 505 | 127 | ||||||
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Total interest expense | 1,696 | 2,121 | ||||||
Net interest income | 13,336 | 10,182 | ||||||
Provision for loan losses | 300 | 400 | ||||||
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Net interest income after provision for loan losses | 13,036 | 9,782 | ||||||
Non-interest income | ||||||||
Service charges and other fees | 641 | 970 | ||||||
Other | 280 | 320 | ||||||
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Total non-interest income | 921 | 1,290 | ||||||
Non-interest expense | ||||||||
Salaries and benefits | 6,367 | 6,477 | ||||||
Premises and equipment | 1,197 | 1,139 | ||||||
Professional fees | 589 | 955 | ||||||
Data processing | 580 | 526 | ||||||
Other | 1,347 | 1,310 | ||||||
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Total non-interest expense | 10,080 | 10,407 | ||||||
Income before provision for income taxes | 3,877 | 665 | ||||||
Provision for income taxes | 1,068 | 192 | ||||||
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Net income | $ | 2,809 | $ | 473 | ||||
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Earnings per common share | ||||||||
Basic | $ | 0.34 | $ | 0.06 | ||||
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Diluted | $ | 0.34 | $ | 0.06 | ||||
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Average common shares outstanding | 8,179,667 | 8,103,248 | ||||||
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Average common and equivalent shares outstanding | 8,242,467 | 8,169,898 | ||||||
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Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Interest income | ||||||||||||||||
Loans | $ | 14,870 | $ | 12,849 | $ | 44,157 | $ | 37,096 | ||||||||
Federal funds sold | 199 | 117 | 371 | 554 | ||||||||||||
Investment securities | 470 | 222 | 1,222 | 621 | ||||||||||||
Total interest income | 15,539 | 13,188 | 45,750 | 38,271 | ||||||||||||
Interest expense | ||||||||||||||||
Deposits | 1,152 | 1,467 | 3,481 | 4,981 | ||||||||||||
Borrowings and subordinated debt | 546 | 533 | 1,506 | 1,136 | ||||||||||||
Total interest expense | 1,698 | 2,000 | 4,987 | 6,117 | ||||||||||||
Net interest income | 13,841 | 11,188 | 40,763 | 32,154 | ||||||||||||
Provision for credit losses | 300 | 850 | (500 | ) | 4,180 | |||||||||||
Net interest income after provision for credit losses | 13,541 | 10,338 | 41,263 | 27,974 | ||||||||||||
Non-interest income | ||||||||||||||||
Service charges and other fees | 905 | 779 | 2,184 | 2,287 | ||||||||||||
Other | 397 | 249 | 995 | 809 | ||||||||||||
Total non-interest income | 1,302 | 1,028 | 3,179 | 3,096 | ||||||||||||
Non-interest expense | ||||||||||||||||
Salaries and benefits | 6,920 | 6,452 | 19,661 | 15,051 | ||||||||||||
Premises and equipment | 1,372 | 1,359 | 3,778 | 3,630 | ||||||||||||
Professional fees | 334 | 634 | 1,450 | 3,013 | ||||||||||||
Data processing | 540 | 734 | 1,604 | 1,796 | ||||||||||||
Other | 1,347 | 1,366 | 3,935 | 3,903 | ||||||||||||
Total non-interest expense | 10,513 | 10,545 | 30,428 | 27,393 | ||||||||||||
Income before provision for income taxes | 4,330 | 821 | 14,014 | 3,677 | ||||||||||||
Provision for income taxes | 1,114 | 326 | 3,827 | 1,159 | ||||||||||||
Net income | $ | 3,216 | $ | 495 | $ | 10,187 | $ | 2,518 | ||||||||
Earnings per common share | ||||||||||||||||
Basic | $ | 0.39 | $ | 0.06 | $ | 1.24 | $ | 0.31 | ||||||||
Diluted | $ | 0.39 | $ | 0.06 | $ | 1.23 | $ | 0.31 | ||||||||
Average common shares outstanding | 8,244,154 | 8,141,807 | 8,211,907 | 8,124,387 | ||||||||||||
Average common and equivalent shares outstanding | 8,310,799 | 8,169,334 | 8,283,683 | 8,159,521 | ||||||||||||
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Net Income | $ | 2,809 | $ | 473 | ||||
Other comprehensive income | ||||||||
Unrealized gain (loss) on securities available for sale | (743 | ) | 75 | |||||
Reclassification adjustment for realized loss on securities available for sale | — | 70 | ||||||
Tax effect | 220 | (44 | ) | |||||
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Total other comprehensive income (loss) | (523 | ) | 101 | |||||
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Total comprehensive income | $ | 2,286 | $ | 574 | ||||
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Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net Income | $ | 3,216 | $ | 495 | $ | 10,187 | $ | 2,518 | ||||||||
Other comprehensive income | ||||||||||||||||
Unrealized (losses) gains on securities available for sale | (440 | ) | (143 | ) | (595 | ) | 602 | |||||||||
Reclassification adjustment for realized loss on securities available for sale | — | 0 | — | 70 | ||||||||||||
Tax effect | 130 | 43 | 176 | (200 | ) | |||||||||||
Total other comprehensive (loss) income | (310 | ) | (100 | ) | (419 | ) | 472 | |||||||||
Total comprehensive income | $ | 2,906 | $ | 395 | $ | 9,768 | $ | 2,990 | ||||||||
Common Stock | Retained | Accumulated Other Comprehensive Income | Total Shareholders’ | |||||||||||||||||
Shares | Amount | Earnings | (Loss) | Equity | ||||||||||||||||
Balance at December 31, 2020 | 8,171,734 | $ | 107,948 | $ | 27,821 | $ | 641 | $ | 136,410 | |||||||||||
Stock awards issued and related compensation expense | 3,369 | 383 | — | — | 383 | |||||||||||||||
Stock options exercised | 14,495 | 99 | — | — | 99 | |||||||||||||||
Net income | — | — | 2,809 | — | 2,809 | |||||||||||||||
Other comprehensive income | — | — | — | (523 | ) | (523 | ) | |||||||||||||
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Balance at March 31, 2021 | 8,189,598 | $ | 108,430 | $ | 30,630 | $ | 118 | $ | 139,178 | |||||||||||
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Balance at December 31, 2019 | 8,092,966 | $ | 106,427 | $ | 23,518 | $ | 311 | $ | 130,256 | |||||||||||
Stock awards issued and related compensation expense | 25,215 | 413 | — | — | 413 | |||||||||||||||
Shares withheld to pay taxes on stock based compensation | (7,550 | ) | (133 | ) | — | — | (133 | ) | ||||||||||||
Stock options exercised | 11,217 | 83 | — | — | 83 | |||||||||||||||
Net income | — | — | 473 | — | 473 | |||||||||||||||
Other comprehensive income | — | — | — | 101 | 101 | |||||||||||||||
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Balance at March 31, 2020 | 8,121,848 | $ | 106,790 | $ | 23,991 | $ | 412 | $ | 131,193 | |||||||||||
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Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | |||||||||||||||||
Shares | Amount | |||||||||||||||||||
Balance at December 31, 2020 | 8,171,734 | $ | 107,948 | $ | 27,821 | $ | 641 | $ | 136,410 | |||||||||||
Stock awards issued and related compensation expense | 3,369 | 383 | — | — | 383 | |||||||||||||||
Stock options exercised | 14,495 | 99 | — | — | 99 | |||||||||||||||
Net income | — | — | 2,809 | — | 2,809 | |||||||||||||||
Other comprehensive loss | — | — | — | (523 | ) | (523 | ) | |||||||||||||
Balance at March 31, 2021 | 8,189,598 | $ | 108,430 | $ | 30,630 | $ | 118 | $ | 139,178 | |||||||||||
Stock awards issued and related compensation expense | 28,562 | 234 | — | — | 234 | |||||||||||||||
Shares withheld to pay taxes on stock based compensation | (2,740 | ) | (150 | ) | — | — | (150 | ) | ||||||||||||
Stock options exercised | 21,770 | 48 | — | — | 48 | |||||||||||||||
Shares withheld to pay exercise price on stock options | (8,074 | ) | (145 | ) | — | — | (145 | ) | ||||||||||||
Net income | — | — | 4,162 | — | 4,162 | |||||||||||||||
Other comprehensive income | — | — | — | 414 | 414 | |||||||||||||||
Balance at June 30, 2021 | 8,229,116 | $ | 108,417 | $ | 34,792 | $ | 532 | $ | 143,741 | |||||||||||
Stock awards issued and related compensation expense | 30,053 | 723 | — | — | 723 | |||||||||||||||
Shares withheld to pay taxes on stock based compensation | (10,056 | ) | (82 | ) | — | — | (82 | ) | ||||||||||||
Stock options exercised | 3,750 | 0 | — | — | 0 | |||||||||||||||
Shares withheld to pay exercise price on stock options | (2,754 | ) | (49 | ) | — | — | (49 | ) | ||||||||||||
Net income | — | — | 3,216 | — | 3,216 | |||||||||||||||
Other comprehensive loss | — | — | — | (310 | ) | (310 | ) | |||||||||||||
Balance at September 30, 2021 | 8,250,109 | $ | 109,009 | $ | 38,008 | $ | 222 | $ | 147,239 | |||||||||||
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 2,809 | $ | 473 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Provision for loan losses | 300 | 400 | ||||||
Provision for deferred taxes | 220 | 120 | ||||||
Depreciation | 398 | 315 | ||||||
Deferred loan fees, net | 2,129 | 312 | ||||||
Accretion on discount of purchased loans, net | (36 | ) | (35 | ) | ||||
Stock based compensation, net | 383 | 280 | ||||||
Increase in cash surrender value of life insurance | (162 | ) | (153 | ) | ||||
Discount on retained portion of sold loans, net | (9 | ) | (156 | ) | ||||
Loss on sale of investment securities, net | — | 70 | ||||||
Increase (decrease) in accrued interest receivable and other assets | 762 | 47 | ||||||
Decrease in accrued interest payable and other liabilities | (3,418 | ) | (1,730 | ) | ||||
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Net cash provided by operating activities | 3,376 | (57 | ) | |||||
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Cash flows from investing activities: | ||||||||
Purchase of investment securities | (7,245 | ) | (15,100 | ) | ||||
Proceeds from sales of investment securities | — | 7,662 | ||||||
Proceeds from principal payments on investment securities | 4,217 | 1,641 | ||||||
Net increase in loans | (101,068 | ) | (19,671 | ) | ||||
Purchase of low income tax credit investments | (290 | ) | (26 | ) | ||||
Purchase of premises and equipment | (72 | ) | (74 | ) | ||||
Purchase of bank-owned life insurance policies | (40 | ) | (815 | ) | ||||
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Net cash used for investing activities | (104,498 | ) | (26,383 | ) | ||||
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Cash flows from financing activities: | ||||||||
Net increase in customer deposits | 97,509 | 40,625 | ||||||
Paydown of long term borrowing | (54,223 | ) | — | |||||
Proceeds from short term and overnight borrowings, net | — | 12,000 | ||||||
Proceeds from exercised stock options | 99 | 83 | ||||||
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Net cash provided by financing activities | 43,385 | 52,708 | ||||||
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Increase in cash and cash equivalents | (57,737 | ) | 26,268 | |||||
Cash and cash equivalents, beginning of period | 418,517 | 114,342 | ||||||
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Cash and cash equivalents, end of period | $ | 360,780 | $ | 140,610 | ||||
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Supplemental disclosure of cash flow information: | ||||||||
Recording of right to use assets and operating lease liabilities | $ | — | $ | 4,079 | ||||
Cash paid during the year for: | ||||||||
Interest | $ | 1,725 | $ | 2,147 | ||||
Income taxes | $ | — | $ | 164 |
Accumulated | ||||||||||||||||||||
Other | ||||||||||||||||||||
Comprehensive | Total | |||||||||||||||||||
Common Stock | Retained | Income | Shareholders’ | |||||||||||||||||
Shares | Amount | Earnings | (Loss) | Equity | ||||||||||||||||
Balance at December 31, 2019 | 8,092,966 | $ | 106,427 | $ | 23,518 | $ | 311 | $ | 130,256 | |||||||||||
Stock awards issued and related compensation expense | 25,215 | 413 | — | — | 413 | |||||||||||||||
Shares withheld to pay taxes on stock based compensation | (7,550 | ) | (133 | ) | — | — | (133 | ) | ||||||||||||
Stock options exercised | 11,217 | 83 | — | — | 83 | |||||||||||||||
Net income | — | — | 473 | — | 473 | |||||||||||||||
Other comprehensive income | — | — | — | 101 | 101 | |||||||||||||||
Balance at March 31, 2020 | 8,121,848 | $ | 106,790 | $ | 23,991 | $ | 412 | $ | 131,193 | |||||||||||
Stock awards issued and related compensation expense | 1,428 | 314 | — | — | 314 | |||||||||||||||
Stock options exercised | 10,181 | 137 | — | — | 137 | |||||||||||||||
Net income | — | — | 1,550 | — | 1,550 | |||||||||||||||
Other comprehensive income | — | — | — | 471 | 471 | |||||||||||||||
Balance at June 30, 2020 | 8,133,457 | $ | 107,241 | $ | 25,541 | $ | 883 | $ | 133,665 | |||||||||||
Stock awards issued and related compensation expense | 12,483 | 525 | — | — | 525 | |||||||||||||||
Stock options exercised | 3,738 | 10 | — | — | 10 | |||||||||||||||
Net income | — | — | 495 | — | 495 | |||||||||||||||
Other comprehensive loss | — | — | — | (100 | ) | (100 | ) | |||||||||||||
Balance at September 30, 2020 | 8,149,678 | $ | 107,776 | $ | 26,036 | $ | 783 | $ | 134,595 | |||||||||||
Nine Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 10,187 | $ | 2,518 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Provision for credit losses | (500 | ) | 4,180 | |||||
Provision for deferred taxes | (1,851 | ) | 127 | |||||
Depreciation | 1,166 | 996 | ||||||
Deferred loan (costs) fees, net | (152 | ) | 3,823 | |||||
Accretion on discount of purchased loans, net | (85 | ) | (216 | ) | ||||
Stock based compensation, net | 1,108 | 1,119 | ||||||
Increase in cash surrender value of life insurance | (487 | ) | (440 | ) | ||||
Discount on retained portion of sold loans, net | (26 | ) | (176 | ) | ||||
Loss on sale of investment securities, net | — | 70 | ||||||
Increase (decrease) in accrued interest receivable and other assets | 1,050 | (2,167 | ) | |||||
Decrease in accrued interest payable and other liabilities | 321 | 2,929 | ||||||
Net cash provided by operating activities | 10,731 | 12,763 | ||||||
Cash flows from investing activities: | ||||||||
Purchase of investment securities | (36,548 | ) | (35,403 | ) | ||||
Proceeds from sales of investment securities | — | 7,729 | ||||||
Proceeds from principal payments on investment securities | 8,848 | 5,425 | ||||||
Purchase of loans | (20,008 | ) | (24,289 | ) | ||||
Net decrease (increase) in loans | 87,092 | (382,916 | ) | |||||
Purchase of low income tax credit investments | (565 | ) | (941 | ) | ||||
Purchase of Federal Home Loan Bank stock | (1,344 | ) | (363 | ) | ||||
Purchase of premises and equipment | (165 | ) | (3,261 | ) | ||||
Purchase of bank-owned life insurance policies | (42 | ) | (821 | ) | ||||
Net cash used for investing activities | 37,268 | (434,840 | ) | |||||
Cash flows from financing activities: | ||||||||
Net increase in customer deposits | 209,848 | 448,996 | ||||||
Paydown of long term borrowing, net | (109,507 | ) | — | |||||
Proceeds from short term and overnight borrowings, net | — | 342,703 | ||||||
Proceeds from issuance of subordinated debt, net | 34,240 | 19,700 | ||||||
Proceeds from exercised stock options, net | (47 | ) | 230 | |||||
Net cash provided by financing activities | 134,534 | 811,629 | ||||||
Increase in cash and cash equivalents | 182,533 | 389,552 | ||||||
Cash and cash equivalents, beginning of period | 418,517 | 114,342 | ||||||
Cash and cash equivalents, end of period | $ | 601,050 | $ | 503,894 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Recording of right to use assets and operating lease liabilities | $ | — | $ | 2,903 | ||||
Cash paid during the year for: | ||||||||
Interest | $ | 5,490 | $ | 10,097 | ||||
Income taxes | $ | 4,684 | $ | 164 |
SEC.
Three months ended | ||||||||
March 31, | ||||||||
(Dollars in thousands, except per share data) | 2021 | 2020 | ||||||
Net income available to common shareholders | $ | 2,809 | $ | 473 | ||||
Weighted average basic common shares outstanding | 8,179,667 | 8,103,248 | ||||||
Add: dilutive potential common shares | 62,800 | 66,650 | ||||||
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Weighted average diluted common shares outstanding | 8,242,467 | 8,169,898 | ||||||
Basic earnings per share | $ | 0.34 | $ | 0.06 | ||||
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Diluted earnings per share | $ | 0.34 | $ | 0.06 | ||||
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Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(Dollars in thousands, except per share data) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Net income available to common shareholders | $ | 3,216 | $ | 495 | $ | 10,187 | $ | 2,518 | ||||||||
Weighted average basic common shares outstanding | 8,244,154 | 8,141,807 | 8,211,907 | 8,124,387 | ||||||||||||
Add: dilutive potential common shares | 66,645 | 27,527 | 71,776 | 35,134 | ||||||||||||
Weighted average diluted common shares outstanding | 8,310,799 | 8,169,334 | 8,283,683 | 8,159,521 | ||||||||||||
Basic earnings per share | $ | 0.39 | $ | 0.06 | $ | 1.24 | $ | 0.31 | ||||||||
Diluted earnings per share | $ | 0.39 | $ | 0.06 | $ | 1.23 | $ | 0.31 | ||||||||
Gross | Gross | Estimated | ||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
At March 31, 2021: | ||||||||||||||||
Mortgage backed securities | $ | 29,305 | $ | 538 | $ | (405 | ) | $ | 29,438 | |||||||
Government agencies | 2,392 | — | (7 | ) | 2,385 | |||||||||||
Corporate bonds | 26,241 | 500 | (459 | ) | 26,282 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total available for sale securities | $ | 57,938 | $ | 1,038 | $ | (871 | ) | $ | 58,105 | |||||||
|
|
|
|
|
|
|
| |||||||||
At December 31, 2020: | ||||||||||||||||
Mortgage backed securities | $ | 27,541 | $ | 669 | $ | (17 | ) | $ | 28,193 | |||||||
Government agencies | 2,418 | — | (6 | ) | 2,412 | |||||||||||
Corporate bonds | 24,224 | 434 | (170 | ) | 24,488 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total available for sale securities | $ | 54,183 | $ | 1,103 | $ | (193 | ) | $ | 55,093 | |||||||
|
|
|
|
|
|
|
|
Gross | Gross | Estimated | ||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
(Dollars in thousands) | Cost | Gains | Losses | Value | ||||||||||||
At September 30, 2021: | ||||||||||||||||
Mortgage backed securities | $ | 43,324 | $ | 416 | $ | (360 | ) | $ | 43,380 | |||||||
Government agencies | 2,117 | 35 | 0 | 2,152 | ||||||||||||
Corporate bonds | 36,352 | 589 | (365 | ) | 36,576 | |||||||||||
Total available for sale securities | $ | 81,793 | $ | 1,040 | $ | (725 | ) | $ | 82,108 | |||||||
At December 31, 2020: | ||||||||||||||||
Mortgage backed securities | $ | 27,541 | $ | 669 | $ | (17 | ) | $ | 28,193 | |||||||
Government agencies | 2,418 | 0 | (6 | ) | 2,412 | |||||||||||
Corporate bonds | 24,224 | 434 | (170 | ) | 24,488 | |||||||||||
Total available for sale securities | $ | 54,183 | $ | 1,103 | $ | (193 | ) | $ | 55,093 | |||||||
Less Than 12 Months | More Than 12 Months | Total | ||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||
At March 31, 2021: | ||||||||||||||||||||||||
Mortgage backed securities | $ | 15,460 | $ | (405 | ) | $ | — | $ | — | $ | 15,460 | $ | (405 | ) | ||||||||||
Government agencies | 2,376 | (7 | ) | — | — | 2,376 | (7 | ) | ||||||||||||||||
Corporate bonds | 6,291 | (459 | ) | — | — | 6,291 | (459 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total available for sale securities | $ | 24,127 | $ | (871 | ) | $ | — | $ | — | $ | 24,127 | $ | (871 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
At December 31, 2020: | ||||||||||||||||||||||||
Mortgage backed securities | $ | 4,481 | $ | (17 | ) | $ | — | $ | — | $ | 4,481 | $ | (17 | ) | ||||||||||
Government agencies | 2,412 | (6 | ) | — | — | 2,412 | (6 | ) | ||||||||||||||||
Corporate bonds | 7,830 | (170 | ) | — | — | 7,830 | (170 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total available for sale securities | $ | 14,723 | $ | (193 | ) | $ | — | $ | — | $ | 14,723 | $ | (193 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Less Than 12 Months | More Than 12 Months | Total | ||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||
At September 30, 2021: | ||||||||||||||||||||||||
Mortgage backed securities | $ | 28,621 | $ | (360 | ) | $ | — | $ | — | $ | 28,621 | $ | (360 | ) | ||||||||||
Government agencies | — | — | — | — | — | — | ||||||||||||||||||
Corporate bonds | 11,750 | (77 | ) | 4,712 | (288 | ) | 16,462 | (365 | ) | |||||||||||||||
Total available for sale securities | $ | 40,371 | $ | (437 | ) | $ | 4,712 | $ | (288 | ) | $ | 45,083 | $ | (725 | ) | |||||||||
At December 31, 2020: | ||||||||||||||||||||||||
Mortgage backed securities | $ | 4,481 | $ | (17 | ) | $ | — | $ | — | $ | 4,481 | $ | (17 | ) | ||||||||||
Government agencies | 2,412 | (6 | ) | — | — | 2,412 | (6 | ) | ||||||||||||||||
Corporate bonds | 7,830 | (170 | ) | — | — | 7,830 | (170 | ) | ||||||||||||||||
Total available for sale securities | $ | 14,723 | $ | (193 | ) | $ | — | $ | — | $ | 14,723 | $ | (193 | ) | ||||||||||
March 31, 2021 | ||||||||
Amortized | Fair | |||||||
(Dollars in thousands) | Cost | Value | ||||||
Available for sale securities: | ||||||||
Less than one year | $ | — | $ | — | ||||
One to five years | 9,067 | 9,324 | ||||||
Five to ten years | 5,250 | 5,286 | ||||||
Beyond ten years | 11,924 | 11,672 | ||||||
Securities not due at a single maturity date | 31,697 | 31,823 | ||||||
|
|
|
| |||||
Total available for sale securities | $ | 57,938 | $ | 58,105 | ||||
|
|
|
|
September 30, 2021 | ||||||||
Amortized | Fair | |||||||
(Dollars in thousands) | Cost | Value | ||||||
Available for sale securities: | ||||||||
Less than one year | $ | — | $ | — | ||||
One to five years | 22,145 | 22,317 | ||||||
Five to ten years | 14,846 | 15,061 | ||||||
Beyond ten years | 5,426 | 5,209 | ||||||
Securities not due at a single maturity date | 39,376 | 39,521 | ||||||
Total available for sale securities | $ | 81,793 | $ | 82,108 | ||||
March 31, | December 31, | |||||||
(Dollars in thousands) | 2021 | 2020 | ||||||
Commercial and industrial | 439,044 | 414,548 | ||||||
Real estate - other | 573,520 | 550,690 | ||||||
Real estate - construction and land | 45,550 | 37,193 | ||||||
SBA | 364,273 | 317,564 | ||||||
Other | 47,926 | 49,075 | ||||||
|
|
|
| |||||
Total loans, gross | 1,470,313 | 1,369,070 | ||||||
Deferred loan origination (fees)/costs, net | (1,569 | ) | 523 | |||||
Allowance for loan losses | (14,577 | ) | (14,111 | ) | ||||
|
|
|
| �� | ||||
Total loans, net | 1,454,167 | 1,355,482 | ||||||
|
|
|
|
September 30, | December 31, | |||||||
(Dollars in thousands) | 2021 | 2020 | ||||||
Commercial and industrial | $ | 428,169 | $ | 414,548 | ||||
Real estate - other | 664,202 | 550,690 | ||||||
Real estate - construction and land | 41,312 | 37,193 | ||||||
SBA | 107,096 | 317,564 | ||||||
Other | 61,193 | 49,075 | ||||||
Total loans, gross | 1,301,972 | 1,369,070 | ||||||
Deferred loan origination costs, net | 760 | 523 | ||||||
Allowance for credit losses | (13,571 | ) | (14,111 | ) | ||||
Total loans, net | $ | 1,289,161 | $ | 1,355,482 | ||||
Commercial | Real Estate | |||||||||||||||||||||||
and | Real Estate | Construction | ||||||||||||||||||||||
(Dollars in thousands) | Industrial | Other | and Land | SBA | Other | Total | ||||||||||||||||||
As of March 31, 2021 | ||||||||||||||||||||||||
Grade: | ||||||||||||||||||||||||
Pass | $ | 424,029 | $ | 561,153 | $ | 41,549 | $ | 361,863 | $ | 47,926 | $ | 1,436,520 | ||||||||||||
Special Mention | 11,544 | 7,607 | 1,306 | 995 | — | 21,452 | ||||||||||||||||||
Substandard | 3,471 | 4,760 | 2,695 | 1,415 | — | 12,341 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 439,044 | $ | 573,520 | $ | 45,550 | $ | 364,273 | $ | 47,926 | $ | 1,470,313 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
As of December 31, 2020 | ||||||||||||||||||||||||
Grade: | ||||||||||||||||||||||||
Pass | $ | 401,629 | $ | 540,153 | $ | 34,543 | $ | 315,277 | $ | 49,075 | $ | 1,340,677 | ||||||||||||
Special Mention | 9,013 | 2,911 | 872 | 859 | — | 13,655 | ||||||||||||||||||
Substandard | 3,906 | 7,626 | 1,778 | 1,428 | — | 14,738 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 414,548 | $ | 550,690 | $ | 37,193 | $ | 317,564 | $ | 49,075 | $ | 1,369,070 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Commercial | Real Estate | |||||||||||||||||||||||
and | Real Estate | Construction | ||||||||||||||||||||||
(Dollars in thousands) | Industrial | Other | and Land | SBA | Other | Total | ||||||||||||||||||
As of September 30, 2021 | ||||||||||||||||||||||||
Grade: | ||||||||||||||||||||||||
Pass | $ | 413,292 | $ | 653,813 | $ | 37,220 | $ | 105,164 | $ | 61,193 | $ | 1,270,682 | ||||||||||||
Special Mention | 10,933 | 4,661 | 1,288 | 1,000 | — | 17,882 | ||||||||||||||||||
Substandard | 3,944 | 5,728 | 2,804 | 932 | — | 13,408 | ||||||||||||||||||
Total | $ | 428,169 | $ | 664,202 | $ | 41,312 | $ | 107,096 | $ | 61,193 | $ | 1,301,972 | ||||||||||||
As of December 31, 2020 | ||||||||||||||||||||||||
Grade: | ||||||||||||||||||||||||
Pass | $ | 401,629 | $ | 540,153 | $ | 34,543 | $ | 315,277 | $ | 49,075 | $ | 1,340,677 | ||||||||||||
Special Mention | 9,013 | 2,911 | 872 | 859 | — | 13,655 | ||||||||||||||||||
Substandard | 3,906 | 7,626 | 1,778 | 1,428 | — | 14,738 | ||||||||||||||||||
Total | $ | 414,548 | $ | 550,690 | $ | 37,193 | $ | 317,564 | $ | 49,075 | $ | 1,369,070 | ||||||||||||
(Dollars in thousands) | 30 Days | 60 Days | 90+ Days | Non-Accrual | Current | Total | ||||||||||||||||||
As of March 31, 2021 | ||||||||||||||||||||||||
Commercial and industrial | $ | 749 | $ | — | $ | — | $ | ��� | $ | 438,295 | $ | 439,044 | ||||||||||||
Real estate - other | 1,000 | — | — | — | 572,520 | 573,520 | ||||||||||||||||||
Real estate - construction and land | — | — | — | — | 45,550 | 45,550 | ||||||||||||||||||
SBA | — | — | — | 234 | 364,039 | 364,273 | ||||||||||||||||||
Other | — | — | — | — | 47,926 | 47,926 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total loans, gross | $ | 1,749 | $ | — | $ | — | $ | 234 | $ | 1,468,330 | $ | 1,470,313 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
As of December 31, 2020 | ||||||||||||||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | $ | — | $ | 414,548 | $ | 414,548 | ||||||||||||
Real estate - other | 1,505 | — | — | — | 549,185 | 550,690 | ||||||||||||||||||
Real estate - construction and land | — | — | — | — | 37,193 | 37,193 | ||||||||||||||||||
SBA | — | — | — | 234 | 317,330 | 317,564 | ||||||||||||||||||
Other | — | — | — | — | 49,075 | 49,075 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total loans, gross | $ | 1,505 | $ | — | $ | — | $ | 234 | $ | 1,367,331 | $ | 1,369,070 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) | 30 Days | 60 Days | 90+ Days | Non-Accrual | Current | Total | ||||||||||||||||||
As of September 30, 2021 | ||||||||||||||||||||||||
Commercial and industrial | $ | 134 | $ | — | $ | — | $ | — | $ | 428,035 | $ | 428,169 | ||||||||||||
Real estate - other | 0 | 191 | — | 1,000 | 663,011 | 664,202 | ||||||||||||||||||
Real estate - construction and land | — | — | — | — | 41,312 | 41,312 | ||||||||||||||||||
SBA | 0 | — | — | 233 | 106,863 | 107,096 | ||||||||||||||||||
Other | — | — | — | — | 61,193 | 61,193 | ||||||||||||||||||
Total loans, gross | $ | 134 | $ | 191 | $ | — | $ | 1,233 | $ | 1,300,414 | $ | 1,301,972 | ||||||||||||
As of December 31, 2020 | ||||||||||||||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | $ | — | $ | 414,548 | $ | 414,548 | ||||||||||||
Real estate - other | 1,505 | — | — | — | 549,185 | 550,690 | ||||||||||||||||||
Real estate - construction and land | — | — | — | — | 37,193 | 37,193 | ||||||||||||||||||
SBA | — | — | — | 234 | 317,330 | 317,564 | ||||||||||||||||||
Other | — | — | — | — | 49,075 | 49,075 | ||||||||||||||||||
Total loans, gross | $ | 1,505 | $ | — | $ | — | $ | 234 | $ | 1,367,331 | $ | 1,369,070 | ||||||||||||
Commercial | Real Estate | |||||||||||||||||||||||
and | Real Estate | Construction | ||||||||||||||||||||||
(Dollars in thousands) | Industrial | Other | and Land | SBA | Other | Total | ||||||||||||||||||
As of March 31, 2021 | ||||||||||||||||||||||||
Gross loans: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 1,873 | $ | — | $ | — | $ | 687 | $ | — | $ | 2,560 | ||||||||||||
Loans collectively evaluated for impairment | 437,171 | 573,520 | 45,550 | 363,586 | 47,926 | 1,467,753 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total gross loans | $ | 439,044 | $ | 573,520 | $ | 45,550 | $ | 364,273 | $ | 47,926 | $ | 1,470,313 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 41 | $ | — | $ | — | $ | 258 | $ | — | $ | 299 | ||||||||||||
Loans collectively evaluated for impairment | 9,190 | 3,957 | 798 | 317 | 16 | 14,278 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total allowance for loan losses | $ | 9,231 | $ | 3,957 | $ | 798 | $ | 575 | $ | 16 | $ | 14,577 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
As of December 31, 2020 | ||||||||||||||||||||||||
Gross loans: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 2,288 | $ | — | $ | — | $ | 689 | $ | — | $ | 2,977 | ||||||||||||
Loans collectively evaluated for impairment | 412,260 | 550,690 | 37,193 | 316,875 | 49,075 | 1,366,093 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total loans | $ | 414,548 | $ | 550,690 | $ | 37,193 | $ | 317,564 | $ | 49,075 | $ | 1,369,070 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 41 | $ | — | $ | — | $ | 259 | $ | — | $ | 300 | ||||||||||||
Loans collectively evaluated for impairment | 8,882 | 3,877 | 681 | 345 | 26 | 13,811 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total allowance for loan losses | $ | 8,923 | $ | 3,877 | $ | 681 | $ | 604 | $ | 26 | $ | 14,111 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Commercial | Real Estate | |||||||||||||||||||||||
and | Real Estate | Construction | ||||||||||||||||||||||
(Dollars in thousands) | Industrial | Other | and Land | SBA | Other | Total | ||||||||||||||||||
As of September 30, 2021 | ||||||||||||||||||||||||
Gross loans: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 0 | $ | 1,000 | $ | — | $ | 233 | $ | — | $ | 1,233 | ||||||||||||
Loans collectively evaluated for impairment | 428,169 | 663,202 | 41,312 | 106,863 | 61,193 | 1,300,739 | ||||||||||||||||||
Total gross loans | $ | 428,169 | $ | 664,202 | $ | 41,312 | $ | 107,096 | $ | 61,193 | $ | 1,301,972 | ||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 0 | $ | — | $ | — | $ | 0 | $ | — | $ | 0 | ||||||||||||
Loans collectively evaluated for impairment | 8,209 | 4,393 | 675 | 273 | 21 | 13,571 | ||||||||||||||||||
Total allowance for loan losses | $ | 8,209 | $ | 4,393 | $ | 675 | $ | 273 | $ | 21 | $ | 13,571 | ||||||||||||
As of December 31, 2020 | ||||||||||||||||||||||||
Gross loans: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 2,288 | $ | — | $ | — | $ | 689 | $ | — | $ | 2,977 | ||||||||||||
Loans collectively evaluated for impairment | 412,260 | 550,690 | 37,193 | 316,875 | 49,075 | 1,366,093 | ||||||||||||||||||
Total loans | $ | 414,548 | $ | 550,690 | $ | 37,193 | $ | 317,564 | $ | 49,075 | $ | 1,369,070 | ||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 41 | $ | — | $ | — | $ | 259 | $ | — | $ | 300 | ||||||||||||
Loans collectively evaluated for impairment | 8,882 | 3,877 | 681 | 345 | 26 | 13,811 | ||||||||||||||||||
Total allowance for loan losses | $ | 8,923 | $ | 3,877 | $ | 681 | $ | 604 | $ | 26 | $ | 14,111 | ||||||||||||
Unpaid | Average | Interest | ||||||||||||||||||
Recorded | Principal | Related | Recorded | Income | ||||||||||||||||
(Dollars in thousands) | Investment | Balance | Allowance | Investment | Recognized | |||||||||||||||
As of March 31, 2021 | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
SBA | $ | 234 | $ | 479 | $ | — | $ | 1,913 | $ | — | ||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial and industrial | $ | 1,873 | $ | 1,873 | $ | 41 | $ | 2,013 | $ | 30 | ||||||||||
SBA | $ | 453 | $ | 453 | $ | 258 | $ | 766 | $ | 18 | ||||||||||
Total: | ||||||||||||||||||||
Commercial and industrial | $ | 1,873 | $ | 1,873 | $ | 41 | $ | 2,013 | $ | 30 | ||||||||||
SBA | $ | 687 | $ | 932 | $ | 258 | $ | 2,679 | $ | 18 | ||||||||||
As of December 31, 2020 | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
SBA | $ | 234 | $ | 479 | $ | — | $ | 1,917 | $ | — | ||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial and industrial | $ | 2,288 | $ | 2,288 | $ | 41 | $ | 2,137 | $ | 148 | ||||||||||
SBA | $ | 455 | $ | 455 | $ | 259 | $ | 3,921 | $ | 57 | ||||||||||
Total: | ||||||||||||||||||||
Commercial and industrial | $ | 2,288 | $ | 2,288 | $ | 41 | $ | 2,137 | $ | 148 | ||||||||||
SBA | $ | 689 | $ | 934 | $ | 259 | $ | 5,838 | $ | 57 |
Unpaid | Average | Interest | ||||||||||||||||||
Recorded | Principal | Related | Recorded | Income | ||||||||||||||||
(Dollars in thousands) | Investment | Balance | Allowance | Investment | Recognized | |||||||||||||||
As of September 30, 2021 | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Real estate - other | $ | 1,000 | $ | 1,000 | $ | — | $ | 1,000 | $ | 8 | ||||||||||
SBA | $ | 233 | $ | 755 | $ | — | $ | 1,973 | $ | 14 | ||||||||||
Total: | ||||||||||||||||||||
Real estate - other | $ | 1,000 | $ | 1,000 | $ | — | $ | 1,000 | $ | 8 | ||||||||||
SBA | $ | 233 | $ | 755 | $ | — | $ | 1,973 | $ | 14 | ||||||||||
As of December 31, 2020 | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
SBA | $ | 234 | $ | 479 | $ | — | $ | 1,917 | $ | — | ||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial and industrial | $ | 2,288 | $ | 2,288 | $ | 41 | $ | 2,137 | $ | 148 | ||||||||||
SBA | $ | 455 | $ | 455 | $ | 259 | $ | 3,921 | $ | 57 | ||||||||||
Total: | ||||||||||||||||||||
Commercial and industrial | $ | 2,288 | $ | 2,288 | $ | 41 | $ | 2,137 | $ | 148 | ||||||||||
SBA | $ | 689 | $ | 934 | $ | 259 | $ | 5,838 | $ | 57 |
Commercial | Real Estate | |||||||||||||||||||||||
and | Real Estate | Construction | ||||||||||||||||||||||
(Dollars in thousands) | Industrial | Other | and Land | SBA | Other | Total | ||||||||||||||||||
Three months ended March 31, 2021 | ||||||||||||||||||||||||
Beginning balance | $ | 8,923 | $ | 3,877 | $ | 681 | $ | 604 | $ | 26 | $ | 14,111 | ||||||||||||
Provision for loan losses | 142 | 80 | 117 | (29 | ) | (10 | ) | 300 | ||||||||||||||||
Charge-offs | — | — | — | — | — | — | ||||||||||||||||||
Recoveries | 166 | — | — | — | — | 166 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ending balance | $ | 9,231 | $ | 3,957 | $ | 798 | $ | 575 | $ | 16 | $ | 14,577 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Three months ended March 31, 2020 | ||||||||||||||||||||||||
Beginning balance | $ | 6,708 | $ | 3,281 | $ | 1,022 | $ | 50 | $ | 14 | $ | 11,075 | ||||||||||||
Provision for loan losses | 1,045 | (620 | ) | (292 | ) | 271 | (4 | ) | 400 | |||||||||||||||
Charge-offs | — | — | — | — | — | — | ||||||||||||||||||
Recoveries | 90 | — | — | — | — | 90 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ending balance | $ | 7,843 | $ | 2,661 | $ | 730 | $ | 321 | $ | 10 | $ | 11,565 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Commercial | Real Estate | |||||||||||||||||||||||
and | Real Estate | Construction | ||||||||||||||||||||||
(Dollars in thousands) | Industrial | Other | and Land | SBA | Other | Total | ||||||||||||||||||
Three months ended September 30, 2021 | ||||||||||||||||||||||||
Beginning balance | $ | 8,133 | $ | 4,069 | $ | 697 | $ | 317 | $ | 24 | $ | 13,240 | ||||||||||||
Provision for loan losses | 45 | 324 | (22 | ) | (44 | ) | (3 | ) | 300 | |||||||||||||||
Charge-offs | — | — | — | 0 | — | 0 | ||||||||||||||||||
Recoveries | 31 | — | — | — | — | 31 | ||||||||||||||||||
Ending balance | $ | 8,209 | $ | 4,393 | $ | 675 | $ | 273 | $ | 21 | $ | 13,571 | ||||||||||||
Three months ended September 30, 2020 | ||||||||||||||||||||||||
Beginning balance | $ | 7,851 | $ | 3,332 | $ | 956 | $ | 366 | $ | 19 | $ | 12,524 | ||||||||||||
Provision for loan losses | 772 | 276 | (280 | ) | 79 | 3 | 850 | |||||||||||||||||
Charge-offs | 0 | �� | — | — | 0 | — | 0 | |||||||||||||||||
Recoveries | 11 | — | — | — | — | 11 | ||||||||||||||||||
Ending balance | $ | 8,634 | $ | 3,608 | $ | 676 | $ | 445 | $ | 22 | $ | 13,385 | ||||||||||||
Nine months ended September 30, 2021 | ||||||||||||||||||||||||
Beginning balance | $ | 8,923 | $ | 3,877 | $ | 681 | $ | 604 | $ | 26 | $ | 14,111 | ||||||||||||
Provision for loan losses | (952 | ) | 516 | (6 | ) | (53 | ) | (5 | ) | (500 | ) | |||||||||||||
Charge-offs | — | — | — | (278 | ) | — | (278 | ) | ||||||||||||||||
Recoveries | 238 | — | — | — | — | 238 | ||||||||||||||||||
Ending balance | $ | 8,209 | $ | 4,393 | $ | 675 | $ | 273 | $ | 21 | $ | 13,571 | ||||||||||||
Nine months ended September 30, 2020 | ||||||||||||||||||||||||
Beginning balance | $ | 6,708 | $ | 3,281 | $ | 1,022 | $ | 50 | $ | 14 | $ | 11,075 | ||||||||||||
Provision for loan losses | 3,688 | 327 | (346 | ) | 503 | 8 | 4,180 | |||||||||||||||||
Charge-offs | (1,868 | ) | — | — | (108 | ) | — | (1,976 | ) | |||||||||||||||
Recoveries | 106 | — | — | — | — | 106 | ||||||||||||||||||
Ending balance | $ | 8,634 | $ | 3,608 | $ | 676 | $ | 445 | $ | 22 | $ | 13,385 | ||||||||||||
Trouble
$79.5 million and $174.0 million respectively.
2020.
2020.
Over One | ||||||||||||||||
Due in | Year But | |||||||||||||||
One Year | Less Than | Over | ||||||||||||||
(Dollars in thousands) | Or Less | Five Years | Five Years | Total | ||||||||||||
Unfunded fixed rate loan commitments: | ||||||||||||||||
Interest rate less than or equal to 4.00% | $ | 8,386 | $ | 607 | $ | 6,000 | $ | 14,993 | ||||||||
Interest rate between 4.00% and 5.00% | 3,774 | 3,995 | 879 | 8,648 | ||||||||||||
Interest rate greater than or equal to 5.00% | — | 250 | 878 | 1,128 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total unfunded fixed rate loan commitments | $ | 12,160 | $ | 4,852 | $ | 7,757 | $ | 24,769 | ||||||||
|
|
|
|
|
|
|
|
Over One | ||||||||||||||||
Due in | Year But | |||||||||||||||
One Year | Less Than | Over | ||||||||||||||
(Dollars in thousands) | Or Less | Five Years | Five Years | Total | ||||||||||||
Unfunded fixed rate loan commitments: | ||||||||||||||||
Interest rate less than or equal to 4.00% | $ | 13,461 | $ | 1,841 | $ | 6,646 | $ | 21,948 | ||||||||
Interest rate between 4.00% and 5.00% | 2,245 | 1,160 | 995 | 4,400 | ||||||||||||
Interest rate greater than or equal to 5.00% | 250 | 345 | 0 | 595 | ||||||||||||
Total unfunded fixed rate loan commitments | $ | 15,956 | $ | 3,346 | $ | 7,641 | $ | 26,943 | ||||||||
March 31, | ||||
(Dollars in thousands) | 2021 | |||
Operating lease cost (cost resulting from lease payments) | $ | 531 | ||
Operating lease - operating cash flows (fixed payments) | $ | 602 | ||
Operating lease - ROU assets | $ | 7,854 | ||
Operating lease - liabilities | $ | 9,874 | ||
Weighted average lease term - operating leases | 3.0 years | |||
Weighted average discount rate - operating leases | 0.35 | % |
September 30, | ||||
(Dollars in thousands) | 2021 | |||
Operating lease cost (cost resulting from lease payments) | $ | 1,578 | ||
Operating lease - operating cash flows (fixed payments) | $ | 1,818 | ||
Operating lease - ROU assets | $ | 6,914 | ||
Operating lease - liabilities | $ | 8,774 | ||
Weighted average lease term - operating leases | 2.6 years | |||
Weighted average discount rate - operating leases | 0.60 | % |
March 31, | ||||
(Dollars in thousands) | 2021 | |||
2021 | $ | 1,828 | ||
2022 | 2,441 | |||
2023 | 1,497 | |||
2024 | 1,456 | |||
2025 | 1,500 | |||
Thereafter | 1,792 | |||
|
| |||
Total undiscounted cash flows | 10,514 | |||
Discount on cash flows | (640 | ) | ||
|
| |||
Total lease liability | $ | 9,874 | ||
|
|
as of September 30, 2021.
September 30, | ||||
(Dollars in thousands) | 2021 | |||
2021 | $ | 613 | ||
2022 | 2,441 | |||
2023 | 1,497 | |||
2024 | 1,456 | |||
2025 | 1,500 | |||
Thereafter | 1,792 | |||
Total undiscounted cash flows | 9,299 | |||
Discount on cash flows | (525 | ) | ||
Total lease liability | $ | 8,774 | ||
Rent expense included in premises and equipment expense totaled $1.6 million and $1.9 million for the nine months ended September 30, 2021 and 2020, respectively.
Carrying | Fair Value Measurements | |||||||||||||||||||
(Dollars in thousands) | Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
As of March 31, 2021 | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and due from banks | $ | 360,780 | $ | 360,780 | $ | — | $ | — | $ | 360,780 | ||||||||||
Securities available for sale | 58,105 | — | 58,105 | — | 58,105 | |||||||||||||||
Loans, net | 1,454,167 | — | — | 1,460,129 | 1,460,129 | |||||||||||||||
Accrued interest receivable | 6,597 | — | 301 | 6,296 | 6,597 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 1,629,715 | $ | 1,521,050 | $ | 108,917 | $ | — | $ | 1,629,967 | ||||||||||
Other borrowings | 134,819 | — | — | 134,860 | 134,860 | |||||||||||||||
Subordinated debt | 24,729 | — | — | 25,588 | 25,588 | |||||||||||||||
Accrued interest payable | 516 | — | 51 | 465 | 516 | |||||||||||||||
As of December 31, 2020 | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and due from banks | $ | 418,517 | $ | 418,517 | $ | — | $ | — | $ | 418,517 | ||||||||||
Securities available for sale | 55,093 | — | 55,093 | — | 55,093 | |||||||||||||||
Loans, net | 1,355,482 | — | — | 1,360,845 | 1,360,845 | |||||||||||||||
Accrued interest receivable | 6,578 | — | 225 | 6,353 | 6,578 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 1,532,206 | $ | 1,331,572 | $ | 200,888 | $ | — | $ | 1,532,460 | ||||||||||
Other borrowings | 189,043 | — | — | 189,123 | 189,123 | |||||||||||||||
Subordinated debt | 24,994 | — | — | 24,642 | 24,642 | |||||||||||||||
Accrued interest payable | 545 | — | 51 | 494 | 545 |
Carrying | Fair Value Measurements | |||||||||||||||||||
(Dollars in thousands) | Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
As of September 30, 2021 | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and due from banks | $ | 601,050 | $ | 601,050 | $ | — | $ | — | $ | 601,050 | ||||||||||
Securities available for sale | 82,108 | — | 82,108 | — | 82,108 | |||||||||||||||
Loans, net | 1,289,161 | — | — | 1,289,677 | 1,289,677 | |||||||||||||||
Accrued interest receivable | 5,235 | — | 519 | 4,716 | 5,235 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 1,742,054 | $ | 1,645,361 | $ | 96,801 | $ | — | $ | 1,742,162 | ||||||||||
Other borrowings | 79,536 | — | — | 79,536 | 79,536 | |||||||||||||||
Subordinated debt | 59,009 | — | — | 61,127 | 61,127 | |||||||||||||||
Accrued interest payable | 327 | — | 48 | 279 | 327 | |||||||||||||||
As of December 31, 2020 | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and due from banks | $ | 418,517 | $ | 418,517 | $ | — | $ | — | $ | 418,517 | ||||||||||
Securities available for sale | 55,093 | — | 55,093 | — | 55,093 | |||||||||||||||
Loans, net | 1,355,482 | — | — | 1,360,845 | 1,360,845 | |||||||||||||||
Accrued interest receivable | 6,578 | — | 225 | 6,353 | 6,578 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 1,532,206 | $ | 1,331,572 | $ | 200,888 | $ | — | $ | 1,532,460 | ||||||||||
Other borrowings | 189,043 | — | — | 189,123 | 189,123 | |||||||||||||||
Subordinated debt | 24,994 | — | — | 24,642 | 24,642 | |||||||||||||||
Accrued interest payable | 545 | — | 51 | 494 | 545 |
(Dollars in thousands) | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||
As of March 31, 2021 | ||||||||||||||||
Investments available for sale: | ||||||||||||||||
Mortgage backed securities | $ | 29,438 | $ | — | $ | 29,438 | $ | — | ||||||||
Government agencies | 2,385 | — | 2,385 | — | ||||||||||||
Corporate bonds | 26,282 | — | 26,282 | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets measured at fair value on a recurring basis | $ | 58,105 | $ | — | $ | 58,105 | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
As of December 31, 2020 | ||||||||||||||||
Investments available for sale: | ||||||||||||||||
Mortgage backed securities | $ | 28,193 | $ | — | $ | 28,193 | $ | — | ||||||||
Government agencies | 2,412 | — | 2,412 | — | ||||||||||||
Corporate bonds | 24,488 | — | 24,488 | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets measured at fair value on a recurring basis | $ | 55,093 | $ | — | $ | 55,093 | $ | — | ||||||||
|
|
|
|
|
|
|
|
(Dollars in thousands) | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||
As of September 30, 2021 | ||||||||||||||||
Investments available for sale: | ||||||||||||||||
Mortgage backed securities | $ | 43,380 | $ | — | $ | 43,380 | $ | — | ||||||||
Government agencies | 2,152 | — | 2,152 | — | ||||||||||||
Corporate bonds | 36,576 | — | 36,576 | — | ||||||||||||
Total assets measured at fair value on a recurring basis | $ | 82,108 | $ | — | $ | 82,108 | $ | — | ||||||||
As of December 31, 2020 | ||||||||||||||||
Investments available for sale: | ||||||||||||||||
Mortgage backed securities | $ | 28,193 | $ | — | $ | 28,193 | $ | — | ||||||||
Government agencies | 2,412 | — | 2,412 | — | ||||||||||||
Corporate bonds | 24,488 | — | 24,488 | — | ||||||||||||
Total assets measured at fair value on a recurring basis | $ | 55,093 | $ | — | $ | 55,093 | $ | — | ||||||||
Carrying | Fair Value Measurements | |||||||||||||||
(Dollars in thousands) | Amount | Level 1 | Level 2 | Level 3 | ||||||||||||
As of March 31, 2021 | ||||||||||||||||
Impaired loans - SBA | $ | 687 | $ | — | $ | — | $ | 687 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets measured at fair value on a non-recurring basis | $ | 687 | $ | — | $ | — | $ | 687 | ||||||||
|
|
|
|
|
|
|
| |||||||||
As of December 31, 2020 | ||||||||||||||||
Impaired loans - SBA | $ | 689 | $ | — | $ | — | $ | 689 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets measured at fair value on a non-recurring basis | $ | 689 | $ | — | $ | — | $ | 689 | ||||||||
|
|
|
|
|
|
|
|
Carrying | Fair Value Measurements | |||||||||||||||
(Dollars in thousands) | Amount | Level 1 | Level 2 | Level 3 | ||||||||||||
As of September 30, 2021 | ||||||||||||||||
Impaired loans - Real estate other | $ | 1,000 | $ | — | $ | — | $ | 1,000 | ||||||||
Impaired loans - SBA | 233 | — | — | 233 | ||||||||||||
Total assets measured at fair value on a non-recurring basis | $ | 1,233 | $ | — | $ | — | $ | 1,233 | ||||||||
As of December 31, 2020 | ||||||||||||||||
Impaired loans - SBA | $ | 689 | $ | — | $ | — | $ | 689 | ||||||||
Total assets measured at fair value on a non-recurring basis | $ | 689 | $ | — | $ | — | $ | 689 | ||||||||
of impairment.
statements.
As of September 30, 2021, loan balances totaling approximately $38.3 million had been approved for forgiveness and the funds remitted to the Company from this second round pool of funding, resulting in an outstanding balance of loans funded under the 2021 PPP of $90.9 million.
Number of | Principal | Number of Loans as a % of | Principal Balance as a % of | |||||||||||||||||||||
(Dollars in millions) | Loans | Balance | PPP Loans | Gross Loans | PPP Loans | Gross Loans | ||||||||||||||||||
Dental services | 371 | $ | 62.6 | 46 | % | 17 | % | 18 | % | 4 | % | |||||||||||||
Contractors | 110 | 130.6 | 14 | % | 5 | % | 37 | % | 9 | % | ||||||||||||||
Other | 325 | 160.2 | 40 | % | 15 | % | 45 | % | 11 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | 806 | $ | 353.4 | 100 | % | 37 | % | 100 | % | 24 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Number of | Principal | Number of Loans as a % of | Principal Balance as a % of | |||||||||||||||||||||
(Dollars in millions) | Loans | Balance | PPP Loans | Gross Loans | PPP Loans | Gross Loans | ||||||||||||||||||
Dental services | 174 | $ | 19.3 | 52 | % | 10 | % | 20 | % | 1 | % | |||||||||||||
Contractors | 33 | 20.4 | 10 | % | 2 | % | 21 | % | 2 | % | ||||||||||||||
Other | 126 | 57.7 | 38 | % | 8 | % | 59 | % | 4 | % | ||||||||||||||
Total | 333 | $ | 97.4 | 100 | % | 20 | % | 100 | % | 7 | % | |||||||||||||
Three months ended | ||||||||
March 31, | ||||||||
(Dollars in thousands, except per share data) | 2021 | 2020 | ||||||
Income Statement Data: | ||||||||
Interest income | $ | 15,032 | $ | 12,303 | ||||
Interest expense | 1,696 | 2,121 | ||||||
|
|
|
| |||||
Net interest income | 13,336 | 10,182 | ||||||
Provision for credit losses | 300 | 400 | ||||||
|
|
|
| |||||
Net interest income after provision for credit losses | 13,036 | 9,782 | ||||||
Other income | 921 | 1,290 | ||||||
Other expenses | 10,080 | 10,407 | ||||||
|
|
|
| |||||
Income before taxes | 3,877 | 665 | ||||||
Income taxes | 1,068 | 192 | ||||||
|
|
|
| |||||
Net income | $ | 2,809 | $ | 473 | ||||
|
|
|
| |||||
Per Share Data: | ||||||||
Basic earnings per share | $ | 0.34 | $ | 0.06 | ||||
Diluted earnings per share | $ | 0.34 | $ | 0.06 | ||||
Performance Measures: | ||||||||
Return on average assets | 0.59 | % | 0.16 | % | ||||
Return on average tangible equity (1) | 8.77 | % | 1.54 | % | ||||
Net interest margin | 2.94 | % | 3.80 | % | ||||
Efficiency ratio | 70.70 | % | 90.72 | % |
Three months ended September 30, | ||||||||
(Dollars in thousands, except per share data) | 2021 | 2020 | ||||||
Income Statement Data: | ||||||||
Interest income | $ | 15,539 | $ | 13,188 | ||||
Interest expense | 1,698 | 2,000 | ||||||
Net interest income | 13,841 | 11,188 | ||||||
Provision for credit losses | 300 | 850 | ||||||
Net interest income after provision for credit losses | 13,541 | 10,338 | ||||||
Other income | 1,302 | 1,028 | ||||||
Other expenses | 10,513 | 10,545 | ||||||
Income before taxes | 4,330 | 821 | ||||||
Income taxes | 1,114 | 326 | ||||||
Net income | $ | 3,216 | $ | 495 | ||||
Per Share Data: | ||||||||
Basic earnings per share | $ | 0.39 | $ | 0.06 | ||||
Diluted earnings per share | $ | 0.39 | $ | 0.06 | ||||
Performance Measures: | ||||||||
Return on average assets | 0.64 | % | 0.10 | % | ||||
Return on average tangible equity (1) | 9.19 | % | 1.55 | % | ||||
Net interest margin | 2.87 | % | 2.41 | % | ||||
Efficiency ratio | 69.42 | % | 86.32 | % |
(1) | See discussion in “Management’s Discussion and Analysis of Financial Condition and Results of Operations Non-GAAP Financial Measures” |
March 31, | December 31, | |||||||
(Dollars in thousands) | 2021 | 2020 | ||||||
Balance Sheet Data: | ||||||||
Assets | $ | 1,947,588 | $ | 1,905,799 | ||||
Loans, net | $ | 1,454,167 | $ | 1,355,482 | ||||
Deposits | $ | 1,629,715 | $ | 1,532,206 | ||||
Shareholders’ equity | $ | 139,178 | $ | 136,410 | ||||
Asset Quality Data: | ||||||||
Allowance for loan losses / gross loans | 0.99 | % | 1.03 | % | ||||
Allowance for loan losses / nonperforming loans | 6229.49 | % | 6030.34 | % | ||||
Nonperforming assets / total assets | 0.01 | % | 0.01 | % | ||||
Nonperforming loans / gross loans | 0.02 | % | 0.02 | % | ||||
Capital Adequacy Measures (Bank): | ||||||||
Tier I leverage ratio | 7.46 | % | 7.49 | % | ||||
Tier I risk-based capital ratio | 9.47 | % | 10.11 | % | ||||
Total risk-based capital ratio | 12.34 | % | 13.22 | % |
Nine months ended September 30, | ||||||||
(Dollars in thousands, except per share data) | 2021 | 2020 | ||||||
Income Statement Data: | ||||||||
Interest income | $ | 45,750 | $ | 38,271 | ||||
Interest expense | 4,987 | 6,117 | ||||||
Net interest income | 40,763 | 32,154 | ||||||
Provision for credit losses | (500 | ) | 4,180 | |||||
Net interest income after provision for credit losses | 41,263 | 27,974 | ||||||
Other income | 3,179 | 3,096 | ||||||
Other expenses | 30,428 | 27,393 | ||||||
Income before taxes | 14,014 | 3,677 | ||||||
Income taxes | 3,827 | 1,159 | ||||||
Net income | $ | 10,187 | $ | 2,518 | ||||
Per Share Data: | ||||||||
Basic earnings per share | $ | 1.24 | $ | 0.31 | ||||
Diluted earnings per share | $ | 1.23 | $ | 0.31 | ||||
Performance Measures: | ||||||||
Return on average assets | 0.70 | % | 0.21 | % | ||||
Return on average tangible equity (1) | 10.11 | % | 2.68 | % | ||||
Net interest margin | 2.92 | % | 2.80 | % | ||||
Efficiency ratio | 69.25 | % | 77.71 | % |
(1) | See discussion in “Management’s Discussion and Analysis of Financial Condition and Results of Operations Non-GAAP Financial Measures” |
(Dollars in thousands) | September 30, 2021 | December 31, 2020 | ||||||
Balance Sheet Data: | ||||||||
Assets | $ | 2,049,079 | $ | 1,905,799 | ||||
Loans, net | $ | 1,289,161 | $ | 1,355,482 | ||||
Deposits | $ | 1,742,054 | $ | 1,532,206 | ||||
Shareholders’ equity | $ | 147,239 | $ | 136,410 | ||||
Asset Quality Data: | ||||||||
Allowance for loan losses / gross loans | 1.04 | % | 1.03 | % | ||||
Allowance for loan losses / nonperforming loans | 1100.65 | % | 6030.34 | % | ||||
Nonperforming assets / total assets | 0.06 | % | 0.01 | % | ||||
Nonperforming loans / gross loans | 0.09 | % | 0.02 | % | ||||
Capital Adequacy Measures: | ||||||||
Tier I leverage ratio | 7.29 | % | 7.49 | % | ||||
Tier I risk-based capital ratio | 9.17 | % | 10.11 | % | ||||
Total risk-based capital ratio | 13.92 | % | 13.22 | % |
Three months ended | ||||||||
March 31, | ||||||||
(Dollars in thousands) | 2021 | 2020 | ||||||
Return on average tangible common equity: | ||||||||
Net income | $ | 2,809 | $ | 473 | ||||
Tangible equity: | ||||||||
Average equity | $ | 137,415 | $ | 131,343 | ||||
Average goodwill / core deposit intangible | 7,550 | 7,591 | ||||||
|
|
|
| |||||
Tangible equity | $ | 129,865 | $ | 123,752 | ||||
|
|
|
| |||||
Return on average tangible common equity | 8.77 | % | 1.54 | % | ||||
|
|
|
|
March 31, | December 31, | |||||||
(Dollars in thousands) | 2021 | 2020 | ||||||
Allowance for loan loss as a percentage of outstanding loans, excluding PPP loans: | ||||||||
Allowance for loan loss | $ | 14,577 | $ | 14,111 | ||||
Gross loans | 1,470,313 | 1,369,070 | ||||||
Less: PPP loans | 353,426 | 306,373 | ||||||
|
|
|
| |||||
Gross loans, net of PPP loans | 1,116,887 | 1,062,697 | ||||||
|
|
|
| |||||
Allowance for loan loss as a percentage of outstanding loans, excluding PPP loans | 1.31 | % | 1.33 | % | ||||
|
|
|
|
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Dollars in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Return on average tangible common equity: | ||||||||||||||||
Net income | $ | 3,216 | $ | 495 | $ | 10,187 | $ | 2,518 | ||||||||
Tangible equity: | ||||||||||||||||
Average equity | $ | 146,363 | $ | 134,240 | $ | 142,311 | $ | 132,982 | ||||||||
Average goodwill / core deposit intangible | 7,530 | 7,570 | 7,540 | 7,581 | ||||||||||||
Tangible equity | $ | 138,833 | $ | 126,670 | $ | 134,771 | $ | 125,401 | ||||||||
Return on average tangible common equity | 9.19 | % | 1.55 | % | 10.11 | % | 2.68 | % | ||||||||
(Dollars in thousands) | September 30, 2021 | December 31, 2020 | ||||||
Allowance for credit losses as a percentage of outstanding loans, excluding PPP loans: | ||||||||
Allowance for credit losses | $ | 13,571 | $ | 14,111 | ||||
Gross loans | 1,301,972 | 1,369,070 | ||||||
Less: PPP loans | 97,451 | 306,373 | ||||||
Gross loans, net of PPP loans | 1,204,521 | 1,062,697 | ||||||
Allowance for credit losses as a percentage of outstanding loans, excluding PPP loans | 1.13 | % | 1.33 | % | ||||
$788,000.
Three months ended September 30, | ||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||
Average Balance | Yields or Rates | Interest Income/ Expense | Average Balance | Yields or Rates | Interest Income/ Expense | |||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||||||||||
Loans (1) | $ | 1,316,080 | 4.48 | % | $ | 14,870 | $ | 1,313,092 | 3.89 | % | $ | 12,849 | ||||||||||||||||
Federal funds sold | 530,806 | 0.15 | % | 199 | 490,409 | 0.09 | % | 117 | ||||||||||||||||||||
Investment securities | 65,811 | 2.83 | % | 470 | 39,571 | 2.23 | % | 222 | ||||||||||||||||||||
Total interest earning assets | 1,912,697 | 3.22 | % | 15,539 | 1,843,072 | 2.85 | % | 13,188 | ||||||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||||||
Cash and due from banks | 18,627 | 19,789 | ||||||||||||||||||||||||||
All other assets (2) | 54,570 | 60,140 | ||||||||||||||||||||||||||
TOTAL | $ | 1,985,894 | $ | 1,923,001 | ||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||
Demand | $ | 36,696 | 0.09 | % | $ | 8 | $ | 30,877 | 0.14 | % | $ | 11 | ||||||||||||||||
Money market and savings | 735,785 | 0.52 | % | 961 | 582,694 | 0.81 | % | 1,190 | ||||||||||||||||||||
Time | 169,849 | 0.43 | % | 183 | 174,436 | 0.61 | % | 266 | ||||||||||||||||||||
Other | 102,287 | 2.12 | % | 546 | 369,764 | 0.57 | % | 533 | ||||||||||||||||||||
Total interest-bearing liabilities | 1,044,617 | 0.64 | % | 1,698 | 1,157,771 | 0.69 | % | 2,000 | ||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||
Demand deposits | 776,195 | 609,273 | ||||||||||||||||||||||||||
Accrued expenses and other liabilities | 18,719 | 21,717 | ||||||||||||||||||||||||||
Shareholders’ equity | 146,363 | 134,240 | ||||||||||||||||||||||||||
TOTAL | $ | 1,985,894 | $ | 1,923,001 | ||||||||||||||||||||||||
Net interest income and margin (3) | 2.87 | % | $ | 13,841 | 2.41 | % | $ | 11,188 | ||||||||||||||||||||
(1) | Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of net deferred loan fees of $1.0 million and $431,000, respectively. |
(2) | Other noninterest-earning assets includes the allowance for loan losses of 13.3 million and $12.5 million, respectively. |
(3) | Net interest margin is net interest income divided by total interest-earning assets. |
Three Months Ended September 30, 2021 vs. 2020 | ||||||||||||
Increase (Decrease) Due to Change in: | ||||||||||||
(Dollars in thousands) | Average Volume | Average Rate | Net Change | |||||||||
Interest income: | ||||||||||||
Loans | $ | 34 | $ | 1,987 | $ | 2,021 | ||||||
Federal funds sold | 15 | 67 | 82 | |||||||||
Investment securities | 187 | 61 | 248 | |||||||||
Interest expense: | ||||||||||||
Deposits | ||||||||||||
Demand | 1 | (4 | ) | (3 | ) | |||||||
Money market and savings | 200 | (429 | ) | (229 | ) | |||||||
Time | (5 | ) | (78 | ) | (83 | ) | ||||||
Other borrowings | (1,428 | ) | 1,441 | 13 | ||||||||
Net interest income | $ | 1,468 | $ | 1,185 | $ | 2,653 | ||||||
Three Months Ended September 30, | Increase (Decrease) | |||||||||||||||
(Dollars in thousands) | 2021 | 2020 | Amount | Percent | ||||||||||||
Service charges and other fees | $ | 905 | $ | 779 | $ | 126 | 16 | % | ||||||||
Earnings on BOLI | 162 | 144 | 18 | 13 | % | |||||||||||
Other | 235 | 105 | 130 | 124 | % | |||||||||||
Total noninterest income | $ | 1,302 | $ | 1,028 | $ | 274 | 27 | % | ||||||||
Three Months Ended September 30, | Increase (Decrease) | |||||||||||||||
(Dollars in thousands) | 2021 | 2020 | Amount | Percent | ||||||||||||
Salaries and benefits | $ | 6,920 | $ | 6,452 | $ | 468 | 7 | % | ||||||||
Premises and equipment | 1,372 | 1,359 | 13 | 1 | % | |||||||||||
Professional fees | 334 | 634 | (300 | ) | -47 | % | ||||||||||
Data processing | 540 | 734 | (194 | ) | -26 | % | ||||||||||
Other | 1,347 | 1,366 | (19 | ) | -1 | % | ||||||||||
Total non-interest expense | $ | 10,513 | $ | 10,545 | $ | (32 | ) | 0 | % | |||||||
In addition, the average yield on total average gross loans in the three months ended March 31, 2021 was 4.18%, a decrease of 80 basis points compared to 4.98% in the same period one year earlier. Excluding PPP loans, the average yield on total average gross loans in the three months ended March 31, 2021 was 4.53%.
2020.
Three months ended March 31, | ||||||||||||||||||||||||
(Dollars in thousands) | 2021 | 2020 | ||||||||||||||||||||||
Yields | Interest | Yields | Interest | |||||||||||||||||||||
Average | or | Income/ | Average | or | Income/ | |||||||||||||||||||
Balance | Rates | Expense | Balance | Rates | Expense | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||||||
Loans (1) | $ | 1,415,506 | 4.18 | % | $ | 14,584 | $ | 952,303 | 4.98 | % | $ | 11,783 | ||||||||||||
Federal funds sold | 369,223 | 0.10 | % | 88 | 96,834 | 1.37 | % | 329 | ||||||||||||||||
Investment securities | 54,708 | 2.67 | % | 360 | 28,294 | 2.72 | % | 191 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total interest earning assets | 1,839,437 | 3.31 | % | 15,032 | 1,077,431 | 4.59 | % | 12,303 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||
Cash and due from banks | 23,033 | 21,729 | ||||||||||||||||||||||
All other assets (2) | 60,269 | 68,643 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
TOTAL | $ | 1,922,739 | $ | 1,167,803 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Demand | $ | 34,512 | 0.13 | % | $ | 11 | $ | 23,747 | 0.12 | % | $ | 7 | ||||||||||||
Money market and savings | 644,740 | 0.61 | % | 972 | 476,493 | 1.19 | % | 1,412 | ||||||||||||||||
Time | 199,953 | 0.42 | % | 208 | 124,705 | 1.85 | % | 575 | ||||||||||||||||
Other | 192,803 | 1.06 | % | 505 | 15,070 | 3.39 | % | 127 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total interest-bearing liabilities | 1,072,008 | 0.64 | % | 1,696 | 640,015 | 1.33 | % | 2,121 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | 689,965 | 375,039 | ||||||||||||||||||||||
Accrued expenses and other liabilities | 23,351 | 21,406 | ||||||||||||||||||||||
Shareholders’ equity | 137,415 | 131,343 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
TOTAL | $ | 1,922,739 | $ | 1,167,803 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net interest income and margin (3) | 2.94 | % | $ | 13,336 | 3.80 | % | $ | 10,182 | ||||||||||||||||
|
|
|
|
|
|
|
|
Nine months ended September 30, | ||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||
Average Balance | Yields or Rates | Interest Income/ Expense | Average Balance | Yields or Rates | Interest Income/ Expense | |||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||||||||||
Loans (1) | $ | 1,382,074 | 4.27 | % | $ | 44,157 | $ | 1,166,829 | 4.25 | % | $ | 37,096 | ||||||||||||||||
Federal funds sold | 422,050 | 0.12 | % | 371 | 334,773 | 0.22 | % | 554 | ||||||||||||||||||||
Investment securities | 60,042 | 2.72 | % | 1,222 | 33,649 | 2.47 | % | 621 | ||||||||||||||||||||
Total interest earning assets | 1,864,166 | 3.28 | % | 45,750 | 1,535,251 | 3.33 | % | 38,271 | ||||||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||||||
Cash and due from banks | 17,223 | 20,098 | ||||||||||||||||||||||||||
All other assets (2) | 58,646 | 63,970 | ||||||||||||||||||||||||||
TOTAL | $ | 1,940,035 | $ | 1,619,319 | ||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||
Demand | $ | 35,031 | 0.11 | % | $ | 29 | $ | 26,842 | 0.12 | % | $ | 25 | ||||||||||||||||
Money market and savings | 684,995 | 0.56 | % | 2,858 | 528,456 | 0.93 | % | 3,677 | ||||||||||||||||||||
Time | 180,572 | 0.44 | % | 594 | 153,887 | 1.11 | % | 1,279 | ||||||||||||||||||||
Other | 144,501 | 1.39 | % | 1,506 | 226,274 | 0.67 | % | 1,136 | ||||||||||||||||||||
Total interest-bearing liabilities | 1,045,099 | 0.64 | % | 4,987 | 935,459 | 0.87 | % | 6,117 | ||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||
Demand deposits | 731,659 | 529,580 | ||||||||||||||||||||||||||
Accrued expenses and other liabilities | 20,966 | 21,298 | ||||||||||||||||||||||||||
Shareholders’ equity | 142,311 | 132,982 | ||||||||||||||||||||||||||
TOTAL | $ | 1,940,035 | $ | 1,619,319 | ||||||||||||||||||||||||
Net interest income and margin (3) | 2.92 | % | $ | 40,763 | 2.80 | % | $ | 32,154 | ||||||||||||||||||||
(1) | Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of net deferred loan fees |
(2) | Other noninterest-earning assets includes the allowance for loan losses of |
(3) | Net interest margin is net interest income divided by total interest-earning assets. |
Three Months Ended March 31, | ||||||||||||
2021 vs. 2020 | ||||||||||||
Increase (Decrease) Due to | ||||||||||||
Change in: | ||||||||||||
Average | Average | Net | ||||||||||
(Dollars in thousands) | Volume | Rate | Change | |||||||||
Interest income: | ||||||||||||
Loans | $ | 4,772 | $ | (1,971 | ) | $ | 2,801 | |||||
Federal funds sold | 65 | (306 | ) | (241 | ) | |||||||
Investment securities | 174 | (5 | ) | 169 | ||||||||
Interest expense: | ||||||||||||
Deposits | ||||||||||||
Demand | 3 | 1 | 4 | |||||||||
Money market and savings | 254 | (694 | ) | (440 | ) | |||||||
Time | 78 | (445 | ) | (367 | ) | |||||||
Other borrowings | 466 | (88 | ) | 378 | ||||||||
|
|
|
|
|
| |||||||
Net interest income | $ | 4,210 | $ | (1,056 | ) | $ | 3,154 | |||||
|
|
|
|
|
|
Nine Months Ended September 30, | ||||||||||||
2021 vs. 2020 | ||||||||||||
Increase (Decrease) Due to | ||||||||||||
Change in: | ||||||||||||
Average | Average | Net | ||||||||||
(Dollars in thousands) | Volume | Rate | Change | |||||||||
Interest income: | ||||||||||||
Loans | $ | 6,877 | $ | 184 | $ | 7,061 | ||||||
Federal funds sold | 77 | (260 | ) | (183 | ) | |||||||
Investment securities | 537 | 64 | 601 | |||||||||
Interest expense: | ||||||||||||
Deposits | ||||||||||||
Demand | 7 | (3 | ) | 4 | ||||||||
Money market and savings | 653 | (1,472 | ) | (819 | ) | |||||||
Time | 88 | (773 | ) | (685 | ) | |||||||
Other borrowings | (852 | ) | 1,222 | 370 | ||||||||
Net interest income | $ | 7,595 | $ | 1,014 | $ | 8,609 | ||||||
We made provisions
Three Months Ended | ||||||||||||||||
March 31, | Increase (Decrease) | |||||||||||||||
(Dollars in thousands) | 2021 | 2020 | Amount | Percent | ||||||||||||
Service charges and other fees | $ | 641 | $ | 970 | $ | (329 | ) | -34 | % | |||||||
Earnings on BOLI | 162 | 153 | 9 | 6 | % | |||||||||||
Other | 118 | 167 | (49 | ) | -29 | % | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total noninterest income | $ | 921 | $ | 1,290 | $ | (369 | ) | -29 | % | |||||||
|
|
|
|
|
|
|
|
Nine Months Ended | ||||||||||||||||
September 30, | Increase (Decrease) | |||||||||||||||
(Dollars in thousands) | 2021 | 2020 | Amount | Percent | ||||||||||||
Service charges and other fees | $ | 2,184 | $ | 2,287 | $ | (103 | ) | -5 | % | |||||||
Earnings on BOLI | 487 | 440 | 47 | 11 | % | |||||||||||
Other | 508 | 369 | 139 | 38 | % | |||||||||||
Total noninterest income | $ | 3,179 | $ | 3,096 | $ | 83 | 3 | % | ||||||||
Three Months Ended | ||||||||||||||||
March 31, | Increase (Decrease) | |||||||||||||||
(Dollars in thousands) | 2021 | 2020 | Amount | Percent | ||||||||||||
Salaries and benefits | $ | 6,367 | $ | 6,477 | $ | (110 | ) | -2 | % | |||||||
Premises and equipment | 1,197 | 1,139 | 58 | 5 | % | |||||||||||
Professional fees | 589 | 955 | (366 | ) | -38 | % | ||||||||||
Data processing | 580 | 526 | 54 | 10 | % | |||||||||||
Other | 1,347 | 1,310 | 37 | 3 | % | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total noninterest expense | $ | 10,080 | $ | 10,407 | $ | (327 | ) | -3 | % | |||||||
|
|
|
|
|
|
|
|
Nine Months Ended | ||||||||||||||||
September 30, | Increase (Decrease) | |||||||||||||||
(Dollars in thousands) | 2021 | 2020 | Amount | Percent | ||||||||||||
Salaries and benefits | $ | 19,661 | $ | 15,051 | $ | 4,610 | 31 | % | ||||||||
Premises and equipment | 3,778 | 3,630 | 148 | 4 | % | |||||||||||
Professional fees | 1,450 | 3,013 | (1,563 | ) | -52 | % | ||||||||||
Data processing | 1,604 | 1,796 | (192 | ) | -11 | % | ||||||||||
Other | 3,935 | 3,903 | 32 | 1 | % | |||||||||||
Total non-interest expense | $ | 30,428 | $ | 27,393 | $ | 3,035 | 11 | % | ||||||||
Operating expenses forinfrastructure to support the three months ended March 31, 2021 also included a decrease in professional and legal fees of $366,000 related to implementation of FDICIA and SEC compliance controls and processes as well as the registrationcontinued growth of the Company’s common shares during the first quarter of 2020.
Company.
gross loans.
(Dollars in thousands) | March 31, 2021 | December 31, 2020 | ||||||
Commercial and industrial | 439,044 | 414,548 | ||||||
Real estate—other | 573,520 | 550,690 | ||||||
Real estate—construction and land | 45,550 | 37,193 | ||||||
SBA | 364,273 | 317,564 | ||||||
Other | 47,926 | 49,075 | ||||||
|
|
|
| |||||
Total loans, gross | 1,470,313 | 1,369,070 | ||||||
Deferred loan origination (fees)/costs, net | (1,569 | ) | 523 | |||||
Allowance for loan losses | (14,577 | ) | (14,111 | ) | ||||
|
|
|
| |||||
Total loans, net | 1,454,167 | 1,355,482 | ||||||
|
|
|
| |||||
Commercial and industrial | 30 | % | 30 | % | ||||
Real estate—other | 39 | % | 40 | % | ||||
Real estate—construction and land | 3 | % | 3 | % | ||||
SBA | 25 | % | 23 | % | ||||
Other | 3 | % | 4 | % | ||||
|
|
|
| |||||
Total loans, gross | 100 | % | 100 | % | ||||
|
|
|
|
September 30, | December 31, | |||||||
(Dollars in thousands) | 2021 | 2020 | ||||||
Commercial and industrial | $ | 428,169 | $ | 414,548 | ||||
Real estate—other | 664,202 | 550,690 | ||||||
Real estate—construction and land | 41,312 | 37,193 | ||||||
SBA | 107,096 | 317,564 | ||||||
Other | 61,193 | 49,075 | ||||||
Total loans, gross | 1,301,972 | 1,369,070 | ||||||
Deferred loan origination costs, net | 760 | 523 | ||||||
Allowance for credit losses | (13,571 | ) | (14,111 | ) | ||||
Total loans, net | $ | 1,289,161 | $ | 1,355,482 | ||||
Commercial and industrial | 33 | % | 30 | % | ||||
Real estate—other | 51 | % | 40 | % | ||||
Real estate—construction and land | 3 | % | 3 | % | ||||
SBA | 8 | % | 23 | % | ||||
Other | 5 | % | 4 | % | ||||
Total loans, gross | 100 | % | 100 | % | ||||
Over One | ||||||||||||||||||||||||
Due in | Year But | Loans With | ||||||||||||||||||||||
One Year | Less Than | Over | Fixed | Variable | ||||||||||||||||||||
(Dollars in thousands) | Or Less | Five Years | Five Years | Total | Rates (1) | Rates | ||||||||||||||||||
Commercial and industrial | $ | 127,100 | $ | 169,245 | $ | 142,699 | $ | 439,044 | $ | 221,124 | $ | 217,920 | ||||||||||||
Real estate—other | 26,339 | 173,980 | 373,201 | 573,520 | 270,599 | 302,921 | ||||||||||||||||||
Real estate—construction and land | 20,955 | 11,459 | 13,136 | 45,550 | 13,218 | 32,332 | ||||||||||||||||||
SBA | 442 | 354,812 | 9,019 | 364,273 | 353,624 | 10,649 | ||||||||||||||||||
Other | 146 | 1,172 | 46,608 | 47,926 | 479 | 47,447 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total loans, gross | $ | 174,982 | $ | 710,668 | $ | 584,663 | $ | 1,470,313 | $ | 859,044 | $ | 611,269 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Over One | ||||||||||||||||||||||||
Due in | Year But | Loans With | ||||||||||||||||||||||
One Year | Less Than | Over | Fixed | Variable | ||||||||||||||||||||
(Dollars in thousands) | Or Less | Five Years | Five Years | Total | Rates (1) | Rates | ||||||||||||||||||
Commercial and industrial | $ | 111,627 | $ | 168,439 | $ | 148,103 | $ | 428,169 | $ | 216,570 | $ | 211,599 | ||||||||||||
Real estate—other | 38,256 | 219,031 | 406,915 | 664,202 | 324,501 | 339,701 | ||||||||||||||||||
Real estate—construction and land | 29,228 | 8,294 | 3,790 | 41,312 | 6,914 | 34,398 | ||||||||||||||||||
SBA | 5,465 | 94,178 | 7,453 | 107,096 | 97,638 | 9,458 | ||||||||||||||||||
Other | 924 | 428 | 59,841 | 61,193 | 59,808 | 1,385 | ||||||||||||||||||
Total loans, gross | $ | 185,500 | $ | 490,370 | $ | 626,102 | $ | 1,301,972 | $ | 705,431 | $ | 596,541 | ||||||||||||
(1) | Excludes variable rate loans on floors |
(Dollars in thousands) Nonaccrual loans Loans over 90 days past due and still accruing Total nonperforming loans Foreclosed assets Total nonperforming assets Performing TDR’s March 31,September 30, 2021. A loan is placed on nonaccrual status if there is concern that principal and interest may not be fully collected or if the loan has been past due for a period of 90 days or more, unless the obligation is both well secured and in process of legal collection. When loans are placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Income on nonaccrual loans is subsequently recognized only to the extent that cash is received and the loan’s principal balance is deemed collectible. Loans are returned to accrual status when they are brought current with respect to principal and interest payments and future payments are reasonably assured. Loans in which the borrower is encountering financial difficulties and we have modified the terms of the original loan are evaluated for impairment and classified as TDR loans. See “Part I – Financial Information, Notes to Unaudited Consolidated Financial Statements, Footnote 7 – Business Impact of March 31,
2021 December 31,
2020 $ 234 $ 234 — — 234 234 — — $ 234 $ 234 $ — $ — September 30, December 31, 2021 2020 $ 1,233 $ 234 — — 1,233 234 — — $ 1,233 $ 234 $ — $ — LoanCredit Lossesloancredit losses is maintained at a level management believes is adequate to account for probable incurred credit losses in the loan portfolio as of the reporting date. We determine the allowance based on a quarterly evaluation of risk. That evaluation gives consideration to the nature of the loan portfolio, historical loss experience, known and inherent risks in the portfolio, the estimated value of any underlying collateral, adverse situations that may
borrower’s ability to repay, current economic and environmental conditions and risk assessments assigned to each loan as a result of our ongoing reviews of the loan portfolio. This process involves a considerable degree of judgment and subjectivity. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance. Such agencies may require the Bank to recognize additions to the allowance based on judgments different from those of management.
Commercial | Real Estate | |||||||||||||||||||||||
and | Real Estate | Construction | ||||||||||||||||||||||
(Dollars in thousands) | Industrial | Other | and Land | SBA | Other | Total | ||||||||||||||||||
Three months ended March 31, 2021 | ||||||||||||||||||||||||
Beginning balance | $ | 8,923 | $ | 3,877 | $ | 681 | $ | 604 | $ | 26 | $ | 14,111 | ||||||||||||
Provision for loan losses | 142 | 80 | 117 | (29 | ) | (10 | ) | 300 | ||||||||||||||||
Charge-offs | — | — | — | — | — | — | ||||||||||||||||||
Recoveries | 166 | — | — | — | — | 166 | ||||||||||||||||||
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Ending balance | $ | 9,231 | $ | 3,957 | $ | 798 | $ | 575 | $ | 16 | $ | 14,577 | ||||||||||||
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Three months ended March 31, 2020 | ||||||||||||||||||||||||
Beginning balance | $ | 6,708 | $ | 3,281 | $ | 1,022 | $ | 50 | $ | 14 | $ | 11,075 | ||||||||||||
Provision for loan losses | 1,045 | (620 | ) | (292 | ) | 271 | (4 | ) | 400 | |||||||||||||||
Charge-offs | — | — | — | — | — | — | ||||||||||||||||||
Recoveries | 90 | — | — | — | — | 90 | ||||||||||||||||||
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Ending balance | $ | 7,843 | $ | 2,661 | $ | 730 | $ | 321 | $ | 10 | $ | 11,565 | ||||||||||||
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Commercial | Real Estate | |||||||||||||||||||||||
and | Real Estate | Construction | ||||||||||||||||||||||
(Dollars in thousands) | Industrial | Other | and Land | SBA | Other | Total | ||||||||||||||||||
Three months ended September 30, 2021 | ||||||||||||||||||||||||
Beginning balance | $ | 8,133 | $ | 4,069 | $ | 697 | $ | 317 | $ | 24 | $ | 13,240 | ||||||||||||
Provision for loan losses | 45 | 324 | (22 | ) | (44 | ) | (3 | ) | 300 | |||||||||||||||
Charge-offs | — | — | — | — | — | — | ||||||||||||||||||
Recoveries | 31 | — | — | — | — | 31 | ||||||||||||||||||
Ending balance | $ | 8,209 | $ | 4,393 | $ | 675 | $ | 273 | $ | 21 | $ | 13,571 | ||||||||||||
Three months ended September 30, 2020 | ||||||||||||||||||||||||
Beginning balance | $ | 7,851 | $ | 3,332 | $ | 956 | $ | 366 | $ | 19 | $ | 12,524 | ||||||||||||
Provision for loan losses | 772 | 276 | (280 | ) | 79 | 3 | 850 | |||||||||||||||||
Charge-offs | — | — | — | — | — | — | ||||||||||||||||||
Recoveries | 11 | — | — | — | — | 11 | ||||||||||||||||||
Ending balance | $ | 8,634 | $ | 3,608 | $ | 676 | $ | 445 | $ | 22 | $ | 13,385 | ||||||||||||
Nine months ended September 30, 2021 | ||||||||||||||||||||||||
Beginning balance | $ | 8,923 | $ | 3,877 | $ | 681 | $ | 604 | $ | 26 | $ | 14,111 | ||||||||||||
Provision for loan losses | (952 | ) | 516 | (6 | ) | (53 | ) | (5 | ) | (500 | ) | |||||||||||||
Charge-offs | — | — | — | (278 | ) | — | (278 | ) | ||||||||||||||||
Recoveries | 238 | — | — | — | — | 238 | ||||||||||||||||||
Ending balance | $ | 8,209 | $ | 4,393 | $ | 675 | $ | 273 | $ | 21 | $ | 13,571 | ||||||||||||
Nine months ended September 30, 2020 | ||||||||||||||||||||||||
Beginning balance | $ | 6,708 | $ | 3,281 | $ | 1,022 | $ | 50 | $ | 14 | $ | 11,075 | ||||||||||||
Provision for loan losses | 3,688 | 327 | (346 | ) | 503 | 8 | 4,180 | |||||||||||||||||
Charge-offs | (1,868 | ) | — | — | (108 | ) | — | (1,976 | ) | |||||||||||||||
Recoveries | 106 | — | — | — | — | 106 | ||||||||||||||||||
Ending balance | $ | 8,634 | $ | 3,608 | $ | 676 | $ | 445 | $ | 22 | $ | 13,385 | ||||||||||||
Our investments provide a source of liquidity as they can be pledged to support borrowed funds or can be liquidated to generate cash proceeds. The investment portfolio is also a significant resource to us in managing interest rate risk, as the maturity and interest rate characteristics of this asset class can be readily changed to match changes in the loan and deposit portfolios. The majority of our
Gross | Gross | Estimated | ||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
(Dollars in thousands) | Cost | Gains | Losses | Value | ||||||||||||
At March 31, 2021: | ||||||||||||||||
Mortgage backed securities | $ | 29,305 | $ | 538 | $ | (405 | ) | $ | 29,438 | |||||||
Government agencies | 2,392 | — | (7 | ) | 2,385 | |||||||||||
Corporate bonds | 26,241 | 500 | (459 | ) | 26,282 | |||||||||||
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Total available for sale securities | $ | 57,938 | $ | 1,038 | $ | (871 | ) | $ | 58,105 | |||||||
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At December 31, 2020: | ||||||||||||||||
Mortgage backed securities | $ | 27,541 | $ | 669 | $ | (17 | ) | $ | 28,193 | |||||||
Government agencies | 2,418 | — | (6 | ) | 2,412 | |||||||||||
Corporate bonds | 24,224 | 434 | (170 | ) | 24,488 | |||||||||||
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Total available for sale securities | $ | 54,183 | $ | 1,103 | $ | (193 | ) | $ | 55,093 | |||||||
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Gross | Gross | Estimated | ||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
At September 30, 2021: | ||||||||||||||||
Mortgage backed securities | $ | 43,324 | $ | 416 | $ | (360 | ) | $ | 43,380 | |||||||
Government agencies | 2,117 | 35 | — | 2,152 | ||||||||||||
Corporate bonds | 36,352 | 589 | (365 | ) | 36,576 | |||||||||||
Total available for sale securities | $ | 81,793 | $ | 1,040 | $ | (725 | ) | $ | 82,108 | |||||||
At December 31, 2020: | ||||||||||||||||
Mortgage backed securities | $ | 27,541 | $ | 669 | $ | (17 | ) | $ | 28,193 | |||||||
Government agencies | 2,418 | — | (6 | ) | 2,412 | |||||||||||
Corporate bonds | 24,224 | 434 | (170 | ) | 24,488 | |||||||||||
Total available for sale securities | $ | 54,183 | $ | 1,103 | $ | (193 | ) | $ | 55,093 | |||||||
The following table provides a comparative distribution of our deposits by outstanding balance as well as by percentage of total deposits at the dates indicated.
(Dollars in thousands) | Balance | % of Total | ||||||
At March 31, 2021: | ||||||||
Demand noninterest-bearing | $ | 742,574 | 46 | % | ||||
Demand interest-bearing | 33,022 | 2 | % | |||||
Money market and savings | 670,517 | 41 | % | |||||
Time | 183,602 | 11 | % | |||||
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Total deposits | $ | 1,629,715 | 100 | % | ||||
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At December 31, 2020: | ||||||||
Demand noninterest-bearing | $ | 673,100 | 44 | % | ||||
Demand interest-bearing | 34,869 | 2 | % | |||||
Money market and savings | 623,603 | 41 | % | |||||
Time | 200,634 | 13 | % | |||||
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Total deposits | $ | 1,532,206 | 100 | % | ||||
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(Dollars in thousands) | Balance | % of Total | ||||||
At September 30, 2021: | ||||||||
Demand noninterest-bearing | $ | 790,646 | 46 | % | ||||
Demand interest-bearing | 39,679 | 2 | % | |||||
Money market and savings | 750,112 | 43 | % | |||||
Time | 161,617 | 9 | % | |||||
Total deposits | $ | 1,742,054 | 100 | % | ||||
At December 31, 2020: | ||||||||
Demand noninterest-bearing | $ | 673,100 | 44 | % | ||||
Demand interest-bearing | 34,869 | 2 | % | |||||
Money market and savings | 623,603 | 41 | % | |||||
Time | 200,634 | 13 | % | |||||
Total deposits | $ | 1,532,206 | 100 | % | ||||
California BanCorp | ||||||
Dated: | By: | /s/ Steven E. Shelton | ||||
Steven E. Shelton | ||||||
President and Chief Executive Officer | ||||||
(Principal Executive Officer) | ||||||
Dated: | By: | /s/ Thomas A. Sa | ||||
Thomas A. Sa | ||||||
Senior Executive Vice President | ||||||
Chief Financial Officer | ||||||
(Principal Financial and Accounting Officer) |
40