Exhibit 99.1
April 21, 2021
Earnings Report – March 31, 2021
Record Assets & Increased Earnings
Dear Shareholders:
We are pleased to announce record assets for your company. Total assets were $1.3 billion as of March 31, 2021 compared to $1.1 billion as of March 31, 2020. Year-to-date net income increased 40.4% at $2.5 million for the period ending March 31, 2021 compared to $1.8 million for the period ending March 31, 2020. Year-to-date diluted earnings per share increased 36.7% at $0.41 and $0.30, for March 31, 2021 and 2020, respectively.
The change in year-to-date net income from prior year was impacted by the following factors: a decrease in net interest income primarily due to lower interest rates, lower provision for loan loss expense due to stabilization of economic indicators, higher non-interest income lifted by gains on secondary market loan sales, and an increase in non-interest expense driven by one-time merger related expenses due to our announced agreement with Stock Yards Bancorp, Inc. The increase in the balance sheet was due to higher investment securities funded by higher deposits.
As we look forward to our announced merger with Stock Yards Bancorp, Inc., we believe we are incredibly well positioned for continued growth. The synergies and expanded market share created by the merger should create a strong value for shareholders. Our banks are culturally aligned in terms of being financially strong, well-managed community banks, with a focus on commitment to community banking and delivering premier customer service. The closing of the merger is planned for May 31, 2021. The management of both banks are working toward a smooth transition with customers, while continuing to plan for future opportunities.
As always, thank you for your continued support.
| |
/s/Louis Prichard | |
Louis Prichard | |
President, CEO | |
UNAUDITED
CONSOLIDATED BALANCE SHEET
(in thousands)
| | | | | | | | | |
| | | | | | | | Percentage |
|
|
| 3/31/2021 |
| 3/31/2020 |
| Change |
| ||
| | | | | | | | | |
Assets | | | | | | | | | |
Cash & Due From Banks | | $ | 81,536 | | $ | 37,474 |
| 117.6 | % |
Federal Funds Sold | |
| 383 | |
| 292 |
| 31.2 | |
Interest Bearing Time Deposits | |
| 2,070 | |
| 2,375 |
| (12.8) | |
Securities | |
| 349,564 | |
| 247,187 |
| 41.4 | |
Loans Held for Sale | |
| 2,695 | |
| 4,990 |
| (46.0) | |
Loans | |
| 765,595 | |
| 778,327 |
| (1.6) | |
Reserve for Loan Losses | |
| 9,960 | |
| 9,916 |
| 0.4 | |
Net Loans | |
| 755,635 | |
| 768,411 |
| (1.7) | |
Bank Owned Life Insurance | | | 18,832 | | | 18,308 | | 2.9 | |
Other Assets | |
| 63,543 | |
| 64,341 |
| (1.2) | |
Total Assets | | $ | 1,274,258 | | $ | 1,143,378 |
| 11.4 | % |
| | | | | | | | | |
Liabilities & Stockholders' Equity | | | | | | | | | |
Deposits | | | | | | | | | |
Demand | | $ | 354,835 | | $ | 243,073 |
| 46.0 | % |
Savings & Interest Checking | |
| 544,272 | |
| 394,973 |
| 37.8 | |
Certificates of Deposit | |
| 126,588 | |
| 215,171 |
| (41.2) | |
Total Deposits | |
| 1,025,695 | |
| 853,217 |
| 20.2 | |
Repurchase Agreements | |
| 8,437 | |
| 5,410 |
| 56.0 | |
Other Borrowed Funds | |
| 96,981 | |
| 146,142 |
| (33.6) | |
Other Liabilities | |
| 15,937 | |
| 20,822 |
| (23.5) | |
Total Liabilities | |
| 1,147,050 | |
| 1,025,591 |
| 11.8 | |
Stockholders' Equity | |
| 127,208 | |
| 117,787 |
| 8.0 | |
Total Liabilities & Stockholders' Equity | | $ | 1,274,258 | | $ | 1,143,378 |
| 11.4 | % |
CONSOLIDATED INCOME STATEMENT
(in thousands)
| | | | | | | | | |
| | Three Months Ending | | ||||||
|
| |
| |
| Percentage |
| ||
| | 3/31/2021 | | 3/31/2020 | | Change | | ||
Interest Income | | $ | 9,847 | | $ | 11,135 | | (11.6) | % |
Interest Expense | |
| 1,148 | |
| 2,143 | | (46.4) | |
Net Interest Income | |
| 8,699 | |
| 8,992 | | (3.3) | |
Loan Loss Provision | |
| 100 | |
| 1,625 | | (93.8) | |
Net Interest Income After Provision | |
| 8,599 | |
| 7,367 | | 16.7 | |
Other Income | |
| 4,168 | |
| 3,562 | | 17.0 | |
Other Expenses | |
| 9,817 | |
| 9,230 | | 6.4 | |
Income Before Taxes | |
| 2,950 | |
| 1,699 | | 73.6 | |
Income Taxes | |
| 492 | |
| (52) | | 1046.2 | |
Net Income | | $ | 2,458 | | $ | 1,751 | | 40.4 | % |
| | | | | | | | | |
Selected Ratios | | | | | | | | | |
Return on Average Assets | |
| 0.78 | % |
| 0.62 | % | | |
Return on Average Equity | |
| 7.66 | |
| 5.77 | | | |
| | | | | | | | | |
Earnings Per Share | | $ | 0.41 | | $ | 0.30 | | | |
Earnings Per Share - assuming dilution | |
| 0.41 | |
| 0.30 | | | |
Cash Dividends Per Share | |
| 0.19 | |
| 0.18 | | | |
Book Value Per Share | |
| 21.34 | |
| 19.81 | | | |
Tangible Book Value Per Share | |
| 18.98 | |
| 17.43 | | | |
| | | | | | | | | | |
Market Price |
| High |
| Low |
| Close |
| |||
First Quarter '21 | | $ | 40.00 | | $ | 19.00 | | $ | 37.45 | |
Fourth Quarter '20 | | $ | 20.70 | | $ | 15.75 | | $ | 20.70 | |
