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| MEDIA CONTACT |
| N E W S R E L E A S E | Amy Baker |
| VP, Corporate Communications & Marketing |
| abaker@mvbbanking.com |
| 844-682-2265 |
MVB Financial Corp. Reports 125% Increase in Annual Earnings and a 39% Increase in Noninterest-Bearing Deposits in 2019
FAIRMONT, W.Va., February 20, 2020 – MVB Financial Corp. (the "Company") (NASDAQ: MVBF) today reported net income of $26.6 million, or $2.22 and $2.16 basic and diluted earnings per share, respectively, excluding discontinued operations, for the year ended December 31, 2019. This represents a 125% increase over the prior year. For the quarter ended December 31, 2019, the Company reported net income of $4.1 million, or $0.34 and $0.32 basic and diluted earnings per share, respectively.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Quarterly | | | | | | Year-to-Date | | |
| | 2019 | | 2019 | | 2018 | | 2019 | | 2018 |
| | Fourth
Quarter | | Third
Quarter | | Fourth
Quarter | | | | |
| Net income from continuing operations | | $ | 4,095 | | | $ | 4,346 | | | $ | 2,999 | | | $ | 26,564 | | | $ | 12,003 | |
| Net income (loss) from discontinued operations | | — | | | (19) | | | — | | | 427 | | | — | |
| Net income | | $ | 4,095 | | | $ | 4,327 | | | $ | 2,999 | | | $ | 26,991 | | | $ | 12,003 | |
| | | | | | | | | | |
| Earnings per share from continuing operations - basic | | $ | 0.34 | | | $ | 0.36 | | | $ | 0.25 | | | $ | 2.22 | | | | $ | 1.04 | |
| Earnings per share from discontinued operations - basic | | — | | | — | | | — | | | 0.04 | | | | — | |
| Earnings per share - basic | | $ | 0.34 | | | $ | 0.36 | | | $ | 0.25 | | | $ | 2.26 | | | | $ | 1.04 | |
| | | | | | | | | | |
| Earnings per share from continuing operations - diluted | | $ | 0.32 | | | $ | 0.35 | | | $ | 0.24 | | | $ | 2.16 | | | | $ | 1.00 | |
| Earnings per share from discontinued operations - diluted | | — | | | — | | | — | | | 0.04 | | | | — | |
| Earnings per share - diluted | | $ | 0.32 | | | $ | 0.35 | | | $ | 0.24 | | | $ | 2.20 | | | | $ | 1.00 | |
MANAGEMENT OVERVIEW
“In 2019, MVB continued to effectively execute on our MVB 3.0 Strategy of seeking ‘blue ocean’ opportunities, an approach which has been validated by our annual performance results. In 2019, we set records for MVB in net income, noninterest-bearing deposit growth and loan quality,” said Larry F. Mazza, President and CEO, MVB Financial Corp. “The successful integration of Chartwell Compliance, which MVB acquired in September 2019, has exceeded our expectations as far as cooperation between
our Team Members. We will continue to leverage this competitive advantage that helps reduce risk for our expanding Fintech vertical.”
As previously reported, on November 21, 2019, the Company entered into a Purchase and Assumption Agreement with Summit Community Bank, Inc., a subsidiary of Summit Financial Group, Inc., pursuant to which Summit will purchase certain assets and assume certain liabilities of three MVB Bank branches in Berkeley County, W.Va. and one MVB Bank branch in Jefferson County, W.Va. Summit has agreed to assume certain deposit liabilities and to acquire certain loans, as well as cash, real property, personal property, and other fixed assets associated with the branches. Of the branches held for sale, assets totaled $46.6 million and deposits totaled $188.3 million as of December 31, 2019.
| | | | | | | | | | | | | | | | | | | | |
| | As of December 31, 2019 | | | | |
| (Dollars in thousands) | | Balance to be retained by MVB | | Balance to be assumed by Summit | | Total |
| Commercial and non-residential real estate loans | | $ | 1,063,828 | | | $ | 16,132 | | | $ | 1,079,960 | |
| Residential real estate and home equity loans | | 306,710 | | | 22,701 | | | 329,411 | |
| Consumer and other loans | | 3,697 | | | 4,083 | | | 7,780 | |
| Deferred loan origination fees and costs, net | | 306 | | | — | | | 306 | |
| Total loans | | 1,374,541 | | | 42,916 | | | 1,417,457 | |
| Premises and equipment, net | | 21,974 | | | 3,638 | | | 25,612 | |
| | | | | | |
| Noninterest-bearing deposits | | $ | 278,547 | | | $ | 19,251 | | | $ | 297,798 | |
| Interest-bearing deposits | | 986,495 | | | 169,019 | | | 1,155,514 | |
| Total deposits | | 1,265,042 | | | 188,270 | | | 1,453,312 | |
Total noninterest-bearing deposits increased $22.8 million, or 8.3%, from September 30, 2019, and increased $84.2 million, or 39.4%, from December 31, 2018, to a balance of $297.8 million as of December 31, 2019. The growth in total noninterest-bearing deposits was primarily driven by MVB's continued strategic initiatives in Fintech and specialty deposits. As of December 31, 2019, total noninterest-bearing deposits were 20.5% of total deposits, compared to 18.9% as of September 30, 2019, and 16.3% as of December 31, 2018.
MVB Mortgage had a record year and played a crucial role in overall earnings growth with net income of $5.8 million for the year ended December 31, 2019. From the year ended December 31, 2018, mortgage closed loan production volume increased $368.7 million, or 25.5%, and the volume of mortgage loans sold increased $342.9 million, or 27.0%. As a result of the increases in production and sold loan volume, mortgage fee income increased $8.7 million, or 26.9%. Even with the increase in volume, mortgage processing expense decreased $510 thousand, or 14.4%, from the year ended December 31, 2018. The
decrease in mortgage processing expense was due to increased efficiencies resulting from reduced operating costs and overhead expenses.
FOURTH QUARTER 2019 HIGHLIGHTS
•Net interest margin continues to grow and was 3.52% for the quarter ended December 31, 2019, an increase of 10 basis points versus the quarter ended September 30, 2019. Net interest margin of 3.47% for the year ended December 31, 2019, increased 6 basis points versus the year ended December 31, 2018.
•Loans, including loans at branches held for sale, of $1.4 billion as of December 31, 2019, increased $35.1 million, or 2.5%, from September 30, 2019, and increased $113.1 million, or 8.7%, from December 31, 2018.
•Nonperforming loans decreased $2.0 million during 2019, to 0.37% of total loans as of December 31, 2019, compared to 0.41% of total loans as of September 30, 2019, and compared to 0.54% as of December 31, 2018.
•Net interest income of $15.9 million for the quarter ended December 31, 2019, increased $831 thousand, or 5.5%, from the quarter ended September 30, 2019.
•Service charges on deposit accounts of $424 thousand for the quarter ended December 31, 2019, increased $87 thousand, or 25.8%, from the quarter ended September 30, 2019. Service charges on deposit accounts of $1.4 million for the year ended December 31, 2019, increased $376 thousand, or 36.4%, from the year ended December 31, 2018. These increases are a result of the Company's execution on enhancing this revenue stream and Fintech relationships.
LOANS
Loans, including loans at branches held for sale, totaled $1.4 billion as of December 31, 2019, an increase of $35.1 million, or 2.5%, from September 30, 2019, and an increase of $113.1 million, or 8.7% from December 31, 2018. Total commercial loans have increased $56.1 million, or 5.5%, from September 30, 2019, and increased $138.9 million, or 14.8%, from December 31, 2018. The year-over-year growth in loans is driven by strong growth in MVB’s Northern Virginia market and consistent performance by the commercial lending team. Residential portfolio mortgage and construction loan sales totaled $24.4 million during the fourth quarter of 2019 and $84.3 million for the full year 2019. The yield on loans was 5.17% for the year ended December 31, 2019, an increase of 23 basis points from the year ended December 31, 2018. The yield on loans was 5.10% for the quarter ended December 31, 2019, a decrease of 6 basis points, from the quarter ended September 30, 2019, and a decrease of 8 basis points, from the quarter ended December 31, 2018.
Loans held for sale totaled $109.8 million as of December 31, 2019, a decrease of $50.2 million, or 31.4%, from September 30, 2019, and an increase of $34.0 million, or 44.8%, from December 31, 2018. Loans held for sale are down from a robust third quarter, but up from 2018, and MVB Mortgage continues to see strong performance.
DEPOSITS
Deposits, including deposits at branches held for sale, totaled $1.5 billion as of December 31, 2019, a decrease of $3.1 million, or 0.2%, from September 30, 2019, and an increase of $144.2 million, or 11.0%, from December 31, 2018. Noninterest-bearing deposits, including noninterest-bearing deposits of branches held for sale, totaled $297.8 million as of December 31, 2019, or 20.5%, of the total deposit base, an increase of $22.8 million, or 8.3%, from September 30, 2019, and an increase of $84.2 million, or 39.4%, from December 31, 2018. The fourth quarter decline in total deposits was due, in part, to the seasonality in public funds, which decreased $24.2 million.
NET INTEREST INCOME
Net interest income for the fourth quarter of 2019 was $15.9 million, an increase of $831 thousand, or 5.5%, from September 30, 2019. Net interest income of $59.4 million for the full year 2019 increased $7.3 million, or 14.1%, from the year ended December 31, 2018. Net interest margin of 3.52% for the quarter ended December 31, 2019, increased 10 basis points versus the quarter ended September 30, 2019. Net interest margin of 3.47% for the year ended December 31, 2019, increased 6 basis points from the year ended December 31, 2018.
Interest income increased 0.9% during the fourth quarter of 2019, even with an 8-basis point decrease in the yield on earning assets, compared to the quarter ended September 30, 2019. The decrease in yield on earning assets compared to the quarter ended September 30, 2019, was the result of a 5-basis point decrease in the yield on commercial loans. Interest income increased 18.1% during 2019, compared to the year ended December 31, 2018. The increase in interest income was the result of a 23-basis point increase in the yield on earning assets, which was the result of a 32-basis point increase in the yield on commercial loans.
Interest expense decreased 10.6% during the fourth quarter of 2019, compared to the quarter ended September 30, 2019, mainly the result of a decrease of 20 basis points in the cost of interest-bearing liabilities. The decrease in the cost of interest-bearing liabilities compared to the quarter ended
September 30, 2019, was the result of a 19-basis point decrease in the cost of CDs. Interest expense increased 29.7% for the year ended December 31, 2019, compared to the same time period in 2018, based on a 31-basis point increase in the cost of interest-bearing liabilities. The increase in the cost of interest-bearing liabilities compared to the year ended December 31, 2018, was the result of a 55-basis point increase in the cost of money market accounts, a 40-basis point increase in the cost of CDs, and a 33-basis point increase in the cost of FHLB and other borrowings.
For the quarter ended December 31, 2019, compared to the quarter ended September 20, 2019, the yield on earning assets decreased 8 basis points and the cost of interest-bearing liabilities decreased 20 basis points. The decrease in cost outpaced the decrease in yield, which led to a 10-basis point increase in net interest margin.
An increase in the Company’s average noninterest-bearing balances of $25.4 million from the quarter ended September 30, 2019, helped to sustain a 35-basis point favorable spread on net interest margin for the quarter ended December 31, 2019, compared to a 37-basis point favorable spread for the quarter ended September 30, 2019.
An increase in the Company's average noninterest-bearing balances of $86.9 million from the year ended December 31, 2018, helped to grow a 34-basis point favorable spread on net interest margin for the year ended December 31, 2019, compared to a 20-basis point favorable spread for the year ended December 31, 2018.
ASSET QUALITY
Asset quality remained strong in 2019. Nonperforming loans decreased $2.0 million during 2019, to 0.37% of total loans as of December 31, 2019, compared to 0.41% as of September 30, 2019, and 0.54% as of December 31, 2018. In addition, net charge-offs for 2019 decreased $427 thousand compared to 2018, resulting in a net loan charge-offs to total loans ratio of 0.07% as of December 31, 2019, and 0.11% as of December 31, 2018.
Provision for loan losses was $232 thousand for the quarter ended December 31, 2019, a decrease of $425 thousand, or 64.7%, from the quarter ended September 30, 2019, and a decrease of $60 thousand, or 20.5%, from the quarter ended December 31, 2018. Provision was $1.8 million for the full year ended December 31, 2019, a $651 thousand decrease from the same time period in 2018.
NONINTEREST INCOME
Noninterest income for the fourth quarter of 2019 was $14.8 million, an increase of $60 thousand, or 0.4%, from the quarter ended September 30, 2019. Noninterest income of $64.6 million for the full year 2019 increased $26.0 million, or 67.2%, from the year ended December 31, 2018.
The increase from the quarter ended September 30, 2019, was the result of an increase of $1.5 million in mortgage fee income, an increase of $871 thousand in compliance consulting income, and an increase of $242 thousand in the gain on sale of portfolio loans. These increases were offset by a decrease of $2.5 million in the gain on derivative. The increase in mortgage fee income was largely the result of an increase of $34.0 million, or 7.3%, in the volume of mortgage loans sold which was driven by a decrease in the balance of mortgage loans held for sale of $50.2 million, or 31.4%. The increase in compliance consulting income is a direct result of the acquisition of Chartwell Compliance in the third quarter of 2019.
The year-over-year increase was primarily the result of an increase of $13.2 million in the holding gain on equity securities from a Fintech investment, an increase of $8.7 million in mortgage fee income, an increase of $1.5 million on the gain on derivative, and an increase of $1.2 million in commercial swap fee income. As previously reported, the Company recognized a $13.6 million holding gain on an equity investment in its Fintech portfolio during the second quarter of 2019. The increase in mortgage fee income was largely the result of an increase of $342.9 million, or 27.0%, in the volume of mortgage loans sold which was driven by an increase of $368.7 million, or 25.5%, in mortgage closed loan production volume. The increase in the gain on derivatives was largely the result of an increase of 23.39% in the locked mortgage pipeline related to the derivative during the year ended December 31, 2019, compared to a decrease of 3.15% in the locked mortgage pipeline related to the derivative during the year ended December 31, 2018. The increase in commercial swap fee income was largely the result of an increase in swap volume from $38.5 million in 2018 to $58.3 million in 2019.
NONINTEREST EXPENSE
Noninterest expense for the fourth quarter of 2019 was $25.0 million, an increase of $1.6 million, or 6.9%, from the quarter ended September 30, 2019. Noninterest expense for the full year 2019 was $87.2 million, an increase of $14.3 million, or 19.7%, from the year ended December 31, 2018. Even with the year-over-year increase in noninterest expense, the Company's efficiency ratio decreased from 80.36%, at December 31, 2018, to 70.32%, at December 31, 2019.
The increase from the quarter ended September 30, 2019 was mainly due to an increase of $658 thousand in professional fees, an increase of $320 thousand in other operating expenses, an increase of $307 thousand in travel expense, and an increase of $285 thousand in salaries and employee benefits. The increase in professional fees is related to Fintech product and technology development. The increase in salaries and employee benefits was largely driven by an increase of $558 thousand related to additional team members acquired as a result of the Chartwell acquisition during the third quarter of 2019 and an increase of $260 thousand related to the build-out of the Fintech team.
The year-over-year increase was primarily the result of an increase of $10.0 million in salaries and employee benefits, an increase of $1.4 million in professional fees, and an increase of $1.3 million in travel expense. The increase in salaries and employee benefits was largely driven by a $4.5 million increase related to increased mortgage production, an increase of $2.0 million related to the build-out of other Company administration, an increase of $1.4 million related to the build-out of the Fintech team, an increase of $1.3 million related to increased incentive and stock-based compensation, and an increase of $623 thousand related to additional team members acquired as a result of the Chartwell acquisition during the third quarter of 2019. The increase in professional fees is related to special projects and Fintech product and technology development. The increase in travel, entertainment, dues, and subscriptions is primarily related to the Fintech team.
DIVIDEND
As previously announced, on November 20, 2019, MVB issued its fourth quarterly dividend for 2019 including a 40% increase compared to the previous quarter dividend payout. The Company declared a quarterly cash dividend of $0.07 per share payable on December 15, 2019, to shareholders of record at the close of business on December 1, 2019.
About MVB Financial Corp.
MVB Financial Corp. (“MVB Financial” or “MVB”), the holding company of MVB Bank, is publicly traded on The Nasdaq Capital Market® under the ticker “MVBF.” Nasdaq is a leading global provider of trading, clearing, exchange technology, listing, information and public company services.
MVB is a financial holding company headquartered in Fairmont, W.Va. Through its subsidiary, MVB Bank, Inc., and the bank’s subsidiaries, MVB Mortgage, MVB Community Development Corporation and Chartwell Compliance, the company provides financial services to individuals and corporate clients in the Mid-Atlantic region and beyond. Chartwell Compliance is a specialty compliance firm providing regulatory compliance and market entry facilitation for firms entering into or expanding in North America within the Fintech industry.
For more information about MVB, please visit ir.mvbbanking.com.
Forward-looking Statements
MVB Financial Corp. has made forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, in this Earnings Release. These forward-looking statements are based on current expectations about the future and subject to risks and uncertainties. Forward-looking statements include information concerning possible or assumed future results of operations of the Company and its subsidiaries. When words such as “believes,” “expects,” “anticipates,” “may,” or similar expressions occur in this Earnings Release, the Company is making forward-looking statements. Note that many factors could affect the future financial results of the Company and its subsidiaries, both individually and collectively, and could cause those results to differ materially from those expressed in the forward-looking statements contained in this Earnings Release. Those factors include, but are not limited to credit risk, changes in market interest rates, inability to achieve merger-related synergies, competition, economic downturn or recession, and government regulation and supervision. Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, as well as its other filings with the SEC, which are available on the SEC website at www.sec.gov. Except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements.
Accounting standards require the consideration of subsequent events occurring after the balance sheet date for matters that require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of a public company’s financial statements when filed with the Securities and Exchange Commission. Accordingly, the consolidated financial information in this announcement is subject to change.
Questions or comments concerning this Earnings Release should be directed to:
MVB Financial Corp.
Donald T. Robinson, Executive Vice President and CFO
(304) 598-3500
drobinson@mvbbanking.com
MVB Financial Corp.
Financial Highlights
Condensed Consolidated Statements of Income
(Unaudited) (Dollars in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Quarterly | | | | | | Year-to-Date | | |
| | 2019 | | 2019 | | 2018 | | 2019 | | 2018 |
| | Fourth Quarter | | Third
Quarter | | Fourth
Quarter | | | | |
| Interest income | | $ | 21,230 | | | $ | 21,038 | | | $ | 19,586 | | | $ | 82,361 | | | $ | 69,760 | |
| Interest expense | | 5,365 | | | 6,004 | | | 5,176 | | | 22,961 | | | 17,706 | |
| Net interest income | | 15,865 | | | 15,034 | | | 14,410 | | | 59,400 | | | 52,054 | |
| Provision for loan losses | | 232 | | | 657 | | | 292 | | | 1,789 | | | 2,440 | |
| Net interest income after provision for loan losses | | 15,633 | | | 14,377 | | | 14,118 | | | 57,611 | | | 49,614 | |
| | | | | | | | | | |
| Noninterest income: | | | | | | | | | | | | | | | |
| Mortgage fee income | | 13,015 | | | 11,496 | | | 7,703 | | | 41,045 | | | 32,337 | |
| Other income | | 1,741 | | | 3,200 | | | 592 | | | 23,559 | | | 6,303 | |
| Total noninterest income | | 14,756 | | | 14,696 | | | 8,295 | | | 64,604 | | | 38,640 | |
| | | | | | | | | | |
| Noninterest expense: | | | | | | | | | | |
| Salaries and employee benefits | | 15,723 | | | 15,438 | | | 11,737 | | | 56,175 | | | 46,224 | |
| Other expense | | 9,260 | | | 7,942 | | | 6,736 | | | 31,026 | | | 26,654 | |
| Total noninterest expenses | | 24,983 | | | 23,380 | | | 18,473 | | | 87,201 | | | 72,878 | |
| | | | | | | | | | |
| Income from continuing operations, before income taxes | | 5,406 | | | 5,693 | | | 3,940 | | | 35,014 | | | 15,376 | |
| Income tax expense - continuing operations | | 1,311 | | | 1,347 | | | 941 | | | 8,450 | | | 3,373 | |
| Net income from continuing operations | | 4,095 | | | 4,346 | | | 2,999 | | | 26,564 | | | 12,003 | |
| | | | | | | | | | |
| Income (loss) from discontinued operations, before income taxes | | — | | | (25) | | | — | | | 575 | | | — | |
| Income tax expense (benefit) - discontinued operations | | — | | | (6) | | | — | | | 148 | | | — | |
| Net income (loss) from discontinued operations | | — | | | (19) | | | — | | | 427 | | | — | |
| | | | | | | | | | |
| Net income | | $ | 4,095 | | | $ | 4,327 | | | $ | 2,999 | | | $ | 26,991 | | | $ | 12,003 | |
| Preferred dividends | | 115 | | | 121 | | | 123 | | | 479 | | | 489 | |
| Net income available to common shareholders | | $ | 3,980 | | | $ | 4,206 | | | $ | 2,876 | | | $ | 26,512 | | | $ | 11,514 | |
| | | | | | | | | | | | | | | |
| Earnings per share from continuing operations - basic | | $ | 0.34 | | | $ | 0.36 | | | $ | 0.25 | | | $ | 2.22 | | | $ | 1.04 | |
| Earnings per share from discontinued operations - basic | | — | | | — | | | — | | | 0.04 | | | — | |
| Earnings per share - basic | | $ | 0.34 | | | $ | 0.36 | | | $ | 0.25 | | | $ | 2.26 | | | $ | 1.04 | |
| | | | | | | | | | | | | | | |
| Earnings per share from continuing operations - diluted | | $ | 0.32 | | | $ | 0.35 | | | $ | 0.24 | | | $ | 2.16 | | | $ | 1.00 | |
| Earnings per share from discontinued operations - diluted | | — | | | — | | | — | | | 0.04 | | | — | |
| Earnings per share - diluted | | $ | 0.32 | | | $ | 0.35 | | | $ | 0.24 | | | $ | 2.20 | | | $ | 1.00 | |
Condensed Consolidated Balance Sheets
(Unaudited) (Dollars in thousands)
| | | | | | | | | | | | | | | | | | | | |
| | December 31, 2019 | | September 30, 2019 | | December 31, 2018 |
| Cash and cash equivalents | | 28,002 | | | 36,568 | | | 22,221 | |
| Certificates of deposit with other banks | | 12,549 | | | 13,541 | | | 14,778 | |
| Securities available-for-sale, at fair value | | 235,821 | | | 226,064 | | | 221,614 | |
| Equity securities | | 18,514 | | | 18,414 | | | 9,599 | |
| Loans held for sale | | 109,788 | | | 159,961 | | | 75,807 | |
| Loans | | 1,374,541 | | | 1,382,375 | | | 1,304,366 | |
| Less: Allowance for loan losses | | (11,775) | | | (11,874) | | | (10,939) | |
| Net loans | | 1,362,766 | | | 1,370,501 | | | 1,293,427 | |
| Premises and equipment, net | | 21,974 | | | 25,446 | | | 26,545 | |
| Assets of branches held for sale | | 46,554 | | | — | | | — | |
| Goodwill | | 19,630 | | | 19,630 | | | 18,480 | |
| Other assets | | 88,516 | | | 91,827 | | | 68,498 | |
| Total assets | | 1,944,114 | | | 1,961,952 | | | 1,750,969 | |
| | | | | | |
| Noninterest-bearing deposits | | $ | 278,547 | | | $ | 274,970 | | | $ | 213,597 | |
| Interest-bearing deposits | | 986,495 | | | 1,181,434 | | | 1,095,557 | |
| Deposits of branches held for sale | | 188,270 | | | — | | | — | |
| Borrowed funds | | 222,885 | | | 241,641 | | | 214,887 | |
| Other liabilities | | 55,981 | | | 57,667 | | | 50,155 | |
| Stockholders' equity | | 211,936 | | | 206,240 | | | 176,773 | |
| Total liabilities and stockholders' equity | | $ | 1,944,114 | | | $ | 1,961,952 | | | $ | 1,750,969 | |
Reportable Segments
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Twelve Months Ended December 31, 2019 | | Commercial & Retail Banking | | Mortgage Banking | | Financial Holding Company | | Intercompany Eliminations | | Consolidated |
| (Dollars in thousands) | | | | | | | | | | |
| Interest income | | $ | 75,874 | | | $ | 8,342 | | | $ | 13 | | | $ | (1,868) | | | $ | 82,361 | |
| Interest expense | | 18,698 | | | 6,014 | | | 769 | | | (2,520) | | | 22,961 | |
| Net interest income | | 57,176 | | | 2,328 | | | (756) | | | 652 | | | 59,400 | |
| Provision for loan losses | | 1,622 | | | 167 | | | — | | | — | | | 1,789 | |
| Net interest income after provision for loan losses | | 55,554 | | | 2,161 | | | (756) | | | 652 | | | 57,611 | |
| | | | | | | | | | |
| Noninterest Income: | | | | | | | | | | |
| Mortgage fee income | | 657 | | | 41,040 | | | — | | | (652) | | | 41,045 | |
| Other income | | 23,033 | | | 1,289 | | | 6,268 | | | (7,031) | | | 23,559 | |
| Total noninterest income | | 23,690 | | | 42,329 | | | 6,268 | | | (7,683) | | | 64,604 | |
| | | | | | | | | | |
| Noninterest Expenses: | | | | | | | | | | |
| Salaries and employee benefits | | 19,067 | | | 28,432 | | | 8,676 | | | — | | | 56,175 | |
| Other expense | | 25,070 | | | 8,136 | | | 4,851 | | | (7,031) | | | 31,026 | |
| Total noninterest expenses | | 44,137 | | | 36,568 | | | 13,527 | | | (7,031) | | | 87,201 | |
| | | | | | | | | | |
| Income (loss) from continuing operations, before income taxes | | 35,107 | | | 7,922 | | | (8,015) | | | — | | | 35,014 | |
| Income tax expense (benefit) - continuing operations | | 8,175 | | | 2,155 | | | (1,880) | | | — | | | 8,450 | |
| Net income (loss) from continuing operations | | 26,932 | | | 5,767 | | | (6,135) | | | — | | | 26,564 | |
| Income from discontinued operations | | — | | | — | | | 575 | | | — | | | 575 | |
| Income tax expense - discontinued operations | | — | | | — | | | 148 | | | — | | | 148 | |
| Net income from discontinued operations | | — | | | — | | | 427 | | | — | | | 427 | |
| Net income (loss) | | $ | 26,932 | | | $ | 5,767 | | | $ | (5,708) | | | $ | — | | | $ | 26,991 | |
| Preferred stock dividends | | — | | | — | | | 479 | | | — | | | 479 | |
| Net income (loss) available to common shareholders | | $ | 26,932 | | | $ | 5,767 | | | $ | (6,187) | | | $ | — | | | $ | 26,512 | |
Reportable Segments
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Twelve Months Ended December 31, 2018 | | Commercial & Retail Banking | | Mortgage Banking | | Financial Holding Company | | Intercompany Eliminations | | Consolidated |
| (Dollars in thousands) | | | | | | | | | | |
| Interest income | | $ | 63,762 | | | $ | 6,667 | | | $ | 5 | | | $ | (674) | | | $ | 69,760 | |
| Interest expense | | 13,667 | | | 4,085 | | | 1,756 | | | (1,802) | | | 17,706 | |
| Net interest income | | 50,095 | | | 2,582 | | | (1,751) | | | 1,128 | | | 52,054 | |
| Provision for loan losses | | 2,386 | | | 54 | | | — | | | — | | | 2,440 | |
| Net interest income after provision for loan losses | | 47,709 | | | 2,528 | | | (1,751) | | | 1,128 | | | 49,614 | |
| | | | | | | | | | |
| Noninterest Income: | | | | | | | | | | |
| Mortgage fee income | | 585 | | | 32,880 | | | — | | | (1,128) | | | 32,337 | |
| Other income | | 6,479 | | | (243) | | | 6,411 | | | (6,344) | | | 6,303 | |
| Total noninterest income | | 7,064 | | | 32,637 | | | 6,411 | | | (7,472) | | | 38,640 | |
| | | | | | | | | | |
| Noninterest Expenses: | | | | | | | | | | |
| Salaries and employee benefits | | 14,924 | | | 23,927 | | | 7,373 | | | — | | | 46,224 | |
| Other expense | | 20,081 | | | 8,608 | | | 4,309 | | | (6,344) | | | 26,654 | |
| Total noninterest expenses | | 35,005 | | | 32,535 | | | 11,682 | | | (6,344) | | | 72,878 | |
| | | | | | | | | | |
| Income (loss) before income taxes | | 19,768 | | | 2,630 | | | (7,022) | | | — | | | 15,376 | |
| Income tax expense (benefit) | | 4,265 | | | 677 | | | (1,569) | | | — | | | 3,373 | |
| Net income (loss) | | $ | 15,503 | | | $ | 1,953 | | | $ | (5,453) | | | $ | — | | | $ | 12,003 | |
| Preferred stock dividends | | — | | | — | | | 489 | | | — | | | 489 | |
| Net income (loss) available to common shareholders | | $ | 15,503 | | | $ | 1,953 | | | $ | (5,942) | | | $ | — | | | $ | 11,514 | |
Average Balances and Interest Rates
(Unaudited) (Dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended
December 31, 2019 | | | | | | Three Months Ended
September 30, 2019 | | | | | | Three Months Ended
December 31, 2018 | | | | |
| | Average
Balance | | Interest
Income/
Expense | | Yield/
Cost | | Average
Balance | | Interest
Income/
Expense | | Yield/
Cost | | Average
Balance | | Interest
Income/
Expense | | Yield/
Cost |
| Assets | | | | | | | | | | | | | | | | | | |
| Interest-bearing deposits in banks | | $ | 10,332 | | | $ | 46 | | | 1.77 | % | | $ | 9,562 | | | $ | 61 | | | 2.53 | % | | $ | 8,123 | | | $ | 45 | | | 2.17 | % |
| CDs with other banks | | 12,908 | | | 64 | | | 1.97 | | | 14,143 | | | 71 | | | 1.99 | | | 14,778 | | | 74 | | | 1.99 | |
| Investment securities: | | | | | | | | | | | | | | | | | | |
| Taxable | | 134,990 | | | 719 | | | 2.11 | | | 122,648 | | | 689 | | | 2.23 | | | 146,488 | | | 924 | | | 2.50 | |
| Tax-exempt | | 111,262 | | | 910 | | | 3.24 | | | 109,324 | | | 879 | | | 3.19 | | | 79,906 | | | 723 | | | 3.59 | |
Loans and loans held for sale: 1 | | | | | | | | | | | | | | | | | | |
| Commercial | | 1,029,592 | | | 13,830 | | | 5.33 | | | 1,002,595 | | | 13,599 | | | 5.38 | | | 924,547 | | | 12,518 | | | 5.37 | |
| Tax exempt | | 11,709 | | | 106 | | | 3.59 | | | 11,229 | | | 100 | | | 3.53 | | | 14,454 | | | 128 | | | 3.51 | |
| Real estate | | 467,633 | | | 5,425 | | | 4.60 | | | 464,769 | | | 5,490 | | | 4.69 | | | 415,502 | | | 5,039 | | | 4.81 | |
| Consumer | | 8,148 | | | 130 | | | 6.33 | | | 8,612 | | | 149 | | | 6.86 | | | 10,215 | | | 135 | | | 5.24 | |
| Total loans | | 1,517,082 | | | 19,491 | | | 5.10 | | | 1,487,205 | | | 19,338 | | | 5.16 | | | 1,364,718 | | | 17,820 | | | 5.18 | |
| Total earning assets | | 1,786,574 | | | 21,230 | | | 4.71 | | | 1,742,882 | | | 21,038 | | | 4.79 | | | 1,614,013 | | | 19,586 | | | 4.81 | |
| Less: Allowance for loan losses | | (11,747) | | | | | | | (11,232) | | | | | | | (11,268) | | | | | |
| Cash and due from banks | | 20,014�� | | | | | | | 18,366 | | | | | | | 16,515 | | | | | |
| Other assets | | 136,650 | | | | | | | 134,871 | | | | | | | 109,146 | | | | | |
| Total assets | | $ | 1,931,491 | | | | | | | $ | 1,884,887 | | | | | | | $ | 1,728,406 | | | | | |
| | | | | | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | |
| NOW | | $ | 417,838 | | | $ | 1,076 | | | 1.02 | | | $ | 384,977 | | | $ | 942 | | | 0.97 | | | $ | 414,997 | | | $ | 865 | | | 0.83 | |
| Money market checking | | 366,402 | | | 1,424 | | | 1.54 | | | 333,849 | | | 1,391 | | | 1.65 | | | 261,928 | | | 852 | | | 1.29 | |
| Savings | | 36,120 | | | 1 | | | 0.01 | | | 37,335 | | | 1 | | | 0.01 | | | 40,494 | | | 1 | | | 0.01 | |
| IRAs | | 16,786 | | | 81 | | | 1.91 | | | 17,342 | | | 84 | | | 1.92 | | | 17,937 | | | 78 | | | 1.73 | |
| CDs | | 341,270 | | | 1,733 | | | 2.01 | | | 366,749 | | | 2,035 | | | 2.20 | | | 384,540 | | | 1,902 | | | 1.96 | |
| Repurchase agreements and federal funds sold | | 9,733 | | | 11 | | | 0.45 | | | 9,493 | | | 12 | | | 0.50 | | | 15,573 | | | 6 | | | 0.15 | |
| FHLB and other borrowings | | 193,487 | | | 997 | | | 2.04 | | | 212,102 | | | 1,383 | | | 2.59 | | | 173,110 | | | 1,150 | | | 2.64 | |
| Subordinated debt | | 4,124 | | | 42 | | | 4.04 | | | 9,535 | | | 156 | | | 6.49 | | | 17,861 | | | 322 | | | 7.15 | |
| Total interest-bearing liabilities | | 1,385,760 | | | 5,365 | | | 1.54 | | | 1,371,382 | | | 6,004 | | | 1.74 | | | 1,326,440 | | | 5,176 | | | 1.55 | |
| Noninterest bearing demand deposits | | 296,651 | | | | | | | 271,294 | | | | | | | 217,527 | | | | | |
| Other liabilities | | 41,244 | | | | | | | 38,618 | | | | | | | 11,903 | | | | | |
| Total liabilities | | 1,723,655 | | | | | | | 1,681,294 | | | | | | | 1,555,870 | | | | | |
| | | | | | | | | | | | | | | | | | |
| Stockholders’ equity | | | | | | | | | | | | | | | | | | |
| Preferred stock | | 7,334 | | | | | | | 7,644 | | | | | | | 7,834 | | | | | |
| Common stock | | 11,920 | | | | | | | 11,773 | | | | | | | 11,633 | | | | | |
| Paid-in capital | | 121,549 | | | | | | | 119,166 | | | | | | | 116,254 | | | | | |
| Treasury stock | | (1,084) | | | | | | | (1,084) | | | | | | | (1,084) | | | | | |
| Retained earnings | | 70,570 | | | | | | | 67,312 | | | | | | | 46,852 | | | | | |
| Accumulated other comprehensive income | | (2,453) | | | | | | | (1,218) | | | | | | | (8,953) | | | | | |
| Total stockholders’ equity | | 207,836 | | | | | | | 203,593 | | | | | | | 172,536 | | | | | |
| Total liabilities and stockholders’ equity | | $ | 1,931,491 | | | | | | | $ | 1,884,887 | | | | | | | $ | 1,728,406 | | | | | |
| | | | | | | | | | | | | | | | | | |
| Net interest spread | | | | | | 3.17 | | | | | | | 3.05 | | | | | | | 3.26 | |
| Net interest income-margin | | | | $ | 15,865 | | | 3.52 | % | | | | $ | 15,034 | | | 3.42 | % | | | | $ | 14,410 | | | 3.54 | % |
| | | | | | | | | | | | | | | | | | |
1 Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate.
Average Balances and Interest Rates
(Unaudited) (Dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Twelve Months Ended
December 31, 2019 | | | | | | Twelve Months Ended
December 31, 2018 | | | | | | Twelve Months Ended
December 31, 2017 | | | | |
| (Dollars in thousands) | | Average Balance | | Interest Income/Expense | | Yield/Cost | | Average Balance | | Interest Income/Expense | | Yield/Cost | | Average Balance | | Interest Income/Expense | | Yield/Cost |
| Assets | | | | | | | | | | | | | | | | | | |
| Interest-bearing deposits in banks | | $ | 9,264 | | | $ | 209 | | | 2.26 | % | | $ | 5,176 | | | $ | 108 | | | 2.09 | % | | $ | 3,790 | | | $ | 52 | | | 1.37 | % |
| CDs with other banks | | 14,097 | | | 280 | | | 1.99 | | | 14,778 | | | 295 | | | 2.00 | | | 14,619 | | | 288 | | | 1.97 | |
| Investment securities: | | | | | | | | | | | | | | | | | | | | | |
| Taxable | | 129,486 | | | 3,055 | | | 2.36 | | | 150,134 | | | 3,580 | | | 2.38 | | | 125,797 | | | 2,658 | | | 2.11 | |
| Tax-exempt | | 103,235 | | | 3,520 | | | 3.41 | | | 79,161 | | | 2,810 | | | 3.55 | | | 58,786 | | | 1,863 | | | 3.17 | |
Loans and loans held for sale: 1 | | | | | | | | | | | | | | | | | | | | | |
| Commercial | | 987,674 | | | 53,087 | | | 5.37 | | | 854,108 | | | 43,099 | | | 5.05 | | | 751,444 | | | 33,896 | | | 4.51 | |
| Tax exempt | | 12,549 | | | 443 | | | 3.53 | | | 14,352 | | | 499 | | | 3.48 | | | 15,064 | | | 520 | | | 3.45 | |
| Real estate | | 447,891 | | | 21,220 | | | 4.74 | | | 395,302 | | | 18,794 | | | 4.75 | | | 373,360 | | | 16,612 | | | 4.45 | |
| Consumer | | 8,948 | | | 547 | | | 6.11 | | | 11,349 | | | 575 | | | 5.07 | | | 13,660 | | | 709 | | | 5.19 | |
| Total loans | | 1,457,062 | | | 75,297 | | | 5.17 | | | 1,275,111 | | | 62,967 | | | 4.94 | | | 1,153,528 | | | 51,737 | | | 4.49 | |
| Total earning assets | | 1,713,144 | | | 82,361 | | | 4.81 | | | 1,524,360 | | | 69,760 | | | 4.58 | | | 1,356,520 | | | 56,598 | | | 4.17 | |
| Less: Allowance for loan losses | | (11,318) | | | | | | | | (10,530) | | | | | | | | (9,626) | | | | | | |
| Cash and due from banks | | 17,625 | | | | | | | | 16,828 | | | | | | | 16,287 | | | | | | |
| Other assets | | 131,370 | | | | | | | | 106,600 | | | | | | | 90,585 | | | | | | |
| Total assets | | $ | 1,850,821 | | | | | | | | $ | 1,637,258 | | | | | | | $ | 1,453,766 | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | | |
| NOW | | $ | 381,092 | | | $ | 3,586 | | | 0.94 | % | | $ | 432,789 | | | $ | 3,246 | | | 0.75 | % | | $ | 438,123 | | | $ | 2,608 | | | 0.60 | % |
| Money market checking | | 331,636 | | | 5,144 | | | 1.55 | | | 245,008 | | | 2,455 | | | 1.00 | | | 239,632 | | | 1,781 | | | 0.74 | |
| Savings | | 38,324 | | | 4 | | | 0.01 | | | 44,049 | | | 29 | | | 0.07 | | | 47,034 | | | 78 | | | 0.17 | |
| IRAs | | 17,415 | | | 329 | | | 1.89 | | | 17,894 | | | 285 | | | 1.59 | | | 16,678 | | | 217 | | | 1.30 | |
| CDs | | 387,660 | | | 8,376 | | | 2.16 | | | 319,720 | | | 5,620 | | | 1.76 | | | 262,417 | | | 3,610 | | | 1.38 | |
| Repurchase agreements and federal funds sold | | 11,252 | | | 48 | | | 0.43 | | | 18,536 | | | 56 | | | 0.30 | | | 23,559 | | | 75 | | | 0.32 | |
| FHLB and other borrowings | | 183,812 | | | 4,704 | | | 2.56 | | | 190,686 | | | 4,259 | | | 2.23 | | | 122,144 | | | 1,690 | | | 1.38 | |
| Subordinated debt | | 12,124 | | | 770 | | | 6.35 | | | 25,774 | | | 1,756 | | | 6.81 | | | 33,524 | | | 2,242 | | | 6.69 | |
| Total interest-bearing liabilities | | 1,363,315 | | | 22,961 | | | 1.68 | | | 1,294,456 | | | 17,706 | | | 1.37 | | | 1,183,111 | | | 12,301 | | | 1.04 | |
| Noninterest bearing demand deposits | | 258,546 | | | | | | | | 171,631 | | | | | | | | 117,696 | | | | | | |
| Other liabilities | | 33,810 | | | | | | | | 10,304 | | | | | | | | 8,006 | | | | | | |
| Total liabilities | | 1,655,671 | | | | | | | | 1,476,391 | | | | | | | | 1,308,813 | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Stockholders’ equity | | | | | | | | | | | | | | | | | | | | |
| Preferred stock | | 7,660 | | | | | | | 7,834 | | | | | | | | 7,927 | | | | | | |
| Common stock | | 11,762 | | | | | | | 11,082 | | | | | | | | 10,355 | | | | | | |
| Paid-in capital | | 118,837 | | | | | | | 107,669 | | | | | | | | 96,987 | | | | | | |
| Treasury stock | | (1,084) | | | | | | | (1,084) | | | | | | | | (1,084) | | | | | | |
| Retained earnings | | 61,712 | | | | | | | 42,509 | | | | | | | | 34,155 | | | | | | |
| Accumulated other comprehensive income | | (3,737) | | | | | | | (7,143) | | | | | | | | (3,387) | | | | | | |
| Total stockholders’ equity | | 195,150 | | | | | | | 160,867 | | | | | | | | 144,953 | | | | | | |
| Total liabilities and stockholders’ equity | | $ | 1,850,821 | | | | | | | $ | 1,637,258 | | | | | | | | $ | 1,453,766 | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Net interest spread | | | | | | 3.13 | | | | | | | 3.21 | | | | | | | 3.13 | |
| Net interest income-margin | | | | $ | 59,400 | | | 3.47 | % | | | | $ | 52,054 | | | 3.41 | % | | | | $ | 44,297 | | | 3.27 | % |
1 Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate.
Selected Financial Data
(Unaudited) (Dollars in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Quarterly | | | | | | Year-to-Date | | |
| | 2019 | | 2019 | | 2018 | | 2019 | | 2018 |
| | Fourth
Quarter | | Third
Quarter | | Fourth
Quarter | | | | |
| Earnings and Per Share Data: | | | | | | | | | | |
| Net income from continuing operations | | $ | 4,095 | | | $ | 4,346 | | | $ | 2,999 | | | $ | 26,564 | | | $ | 12,003 | |
| Net income from discontinued operations | | — | | | (19) | | | — | | | 427 | | | — | |
| Net income | | 4,095 | | | 4,327 | | | 2,999 | | | 26,991 | | | 12,003 | |
| Net income available to common shareholders | | 3,980 | | | 4,206 | | | 2,876 | | | 26,512 | | | 11,514 | |
| Earnings per share from continuing operations - basic | | 0.34 | | | 0.36 | | | 0.25 | | | 2.22 | | | 1.04 | |
| Earnings per share from discontinued operations - basic | | — | | | — | | | — | | | 0.04 | | | — | |
| Earnings per share - basic | | 0.34 | | | 0.36 | | | 0.25 | | | 2.26 | | | 1.04 | |
| Earnings per share from continuing operations - basic | | 0.32 | | | 0.35 | | | 0.24 | | | 2.16 | | | 1.00 | |
| Earnings per share from discontinued operations - diluted | | — | | | — | | | — | | | 0.04 | | | — | |
| Earnings per share - diluted | | 0.32 | | | 0.35 | | | 0.24 | | | 2.20 | | | 1.00 | |
| Cash dividends paid per common share | | 0.070 | | | 0.050 | | | 0.030 | | | 0.195 | | | 0.110 | |
| Book value per common share | | 17.13 | | | 16.84 | | | 14.55 | | | 17.13 | | | 14.55 | |
| Tangible book value per common share | | 15.20 | | | 14.87 | | | 12.92 | | | 15.20 | | | 12.92 | |
| Weighted average shares outstanding - basic | | 11,869,091 | | | 11,731,774 | | | 11,582,378 | | | 11,713,885 | | | 11,030,984 | |
| Weighted average shares outstanding - diluted | | 12,334,423 | | | 12,098,335 | | | 12,772,222 | | | 12,044,667 | | | 12,722,003 | |
| | | | | | | | | | |
| Performance Ratios: | | | | | | | | | | |
Return on average assets - continuing operations 1 | | 0.85 | % | | 0.92 | % | | 0.69 | % | | 1.44 | % | | 0.73 | % |
Return on average assets - discontinued operations 1 | | — | % | | — | % | | — | % | | 0.02 | % | | — | % |
Return on average assets 1 | | 0.85 | % | | 0.92 | % | | 0.69 | % | | 1.46 | % | | 0.73 | % |
Return on average equity - continuing operations 1 | | 7.88 | % | | 8.54 | % | | 6.95 | % | | 13.61 | % | | 7.46 | % |
Return on average equity - discontinued operations 1 | | — | % | | (0.04) | % | | — | % | | 0.22 | % | | — | % |
Return on average equity 1 | | 7.88 | % | | 8.50 | % | | 6.95 | % | | 13.83 | % | | 7.46 | % |
Net interest margin 2 | | 3.52 | % | | 3.42 | % | | 3.54 | % | | 3.47 | % | | 3.41 | % |
Efficiency ratio 3 | | 81.59 | % | | 78.64 | % | | 81.36 | % | | 70.32 | % | | 80.36 | % |
Overhead ratio 1 4 | | 5.17 | % | | 4.96 | % | | 4.28 | % | | 4.71 | % | | 4.45 | % |
| Equity to assets | | 10.90 | % | | 10.51 | % | | 10.10 | % | | 10.90 | % | | 10.10 | % |
| | | | | | | | | | |
| Asset Quality Data and Ratios: | | | | | | | | | | |
| Charge-offs | | $ | 332 | | | $ | — | | | $ | 801 | | | $ | 1,008 | | | $ | 1,480 | |
| Recoveries | | 1 | | | 49 | | | 9 | | | 55 | | | 101 | |
Net loan charge-offs to total loans 1 5 | | 0.10 | % | | (0.01) | % | | 0.24 | % | | 0.07 | % | | 0.11 | % |
| Allowance for loan losses | | 11,775 | | | 11,874 | | | 10,939 | | | 11,775 | | | 10,939 | |
Allowance for loan losses to total loans 6 | | 0.86 | % | | 0.86 | % | | 0.84 | % | | 0.86 | % | | 0.84 | % |
| Nonperforming loans | | 5,123 | | | 5,627 | | | 7,103 | | | 5,123 | | | 7,103 | |
| Nonperforming loans to total loans | | 0.37 | % | | 0.41 | % | | 0.54 | % | | 0.37 | % | | 0.54 | % |
| | | | | | | | | | |
| Mortgage Data: | | | | | | | | | | |
| Locked pipeline | | $ | 150,960 | | | $ | 247,339 | | | $ | 125,545 | | | $ | 150,960 | | | $ | 125,545 | |
| Sold loan volume | | $ | 499,577 | | | $ | 465,581 | | | $ | 318,018 | | | $ | 1,614,318 | | | $ | 1,271,417 | |
| Sold loan refinance volume | | $ | 297,391 | | | $ | 192,868 | | | $ | 76,868 | | | $ | 678,211 | | | $ | 345,908 | |
1 annualized for the quarterly periods presented
2 net interest income as a percentage of average interest earning assets
3 noninterest expense as a percentage of net interest income and noninterest income
4 noninterest expense as a percentage of average assets
5 charge-offs less recoveries
6 excludes loans held for sale
Non-GAAP Reconciliation: Tangible Book Value per Common Share
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Quarterly | | | | | | Year-to-Date | | |
| | 2019 | | 2019 | | 2018 | | 2019 | | 2018 |
| (Dollars in thousands) | | Fourth
Quarter | | Third
Quarter | | Fourth
Quarter | | | | |
| Goodwill | | $ | 19,630 | | | $ | 19,630 | | | $ | 18,480 | | | $ | 19,630 | | | $ | 18,480 | |
| Intangibles | | 3,473 | | | 3,649 | | | 550 | | | 3,473 | | | 550 | |
| Total intangibles | | 23,103 | | | 23,279 | | | 19,030 | | | 23,103 | | | 19,030 | |
| | | | | | | | | | |
| Total Equity | | 211,936 | | | 206,240 | | | 176,773 | | | 211,936 | | | 176,773 | |
| Less: Preferred equity | | (7,334) | | | (7,334) | | | (7,834) | | | (7,334) | | | (7,834) | |
| Less: Total intangibles | | (23,103) | | | (23,279) | | | (19,030) | | | (23,103) | | | (19,030) | |
| Tangible common equity | | 181,499 | | | 175,627 | | | 149,909 | | | 181,499 | | | 149,909 | |
| | | | | | | | | | |
| Tangible common equity | | 181,499 | | | 175,627 | | | 149,909 | | | 181,499 | | | 149,909 | |
| Common shares outstanding (000s) | | 11,944 | | | 11,814 | | | 11,607 | | | 11,944 | | | 11,607 | |
| Tangible book value per common share ($) | | $ | 15.20 | | | $ | 14.87 | | | $ | 12.92 | | | $ | 15.20 | | | $ | 12.92 | |
