Exhibit 99.2
Investor Presentation Fourth Quarter 2019 |
2 Why Bridgewater Bank? Disclaimer Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of Bridgewater Bancshares, Inc. (the “Company”). These statements are often, but not always, identified by words such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized”, “target” and “outlook”, or the negative version of those words or other comparable words of a future or forward-looking nature. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the negative effects of the COVID-19 pandemic, including its effects on the economic environment, our clients and our operations, as well as any changes to federal, state or local government laws, regulations or orders in connection with the pandemic; loan concentrations in our portfolio; the overall health of the local and national real estate market; our ability to successfully manage credit risk; business and economic conditions generally and in the financial services industry, nationally and within our market area; our ability to maintain an adequate level of allowance for loan losses; new or revised accounting standards, including as a result of the future implementation of the Current Expected Credit Loss Standard; our high concentration of large loans to certain borrowers; our concentration of large deposits from certain clients; our ability to successfully manage liquidity risk; our dependence on non-core funding sources and our cost of funds; our ability to raise additional capital to implement our business plan; our ability to implement our growth strategy and manage costs effectively; developments and uncertainty related to the future use and availability of some reference rates, such as the London Interbank Offered Rate, as well as other alternative reference rates; the composition of our senior leadership team and our ability to attract and retain key personnel; the occurrence of fraudulent activity, breaches or failures of our information security controls or cybersecurity-related incidents; interruptions involving our information technology and telecommunications systems or third-party servicers; competition in the financial services industry; the effectiveness of our risk management framework; the commencement and outcome of litigation and other legal proceedings and regulatory actions against us; the impact of recent and future legislative and regulatory changes; interest rate risk; fluctuations in the values of the securities held in our securities portfolio; the imposition of tariffs or other governmental policies impacting the value of products produced by our commercial borrowers; severe weather, natural disasters, wide spread disease or pandemics (including the COVID-19 pandemic), acts of war or terrorism or other adverse external events; potential impairment to the goodwill we recorded in connection with our past acquisition; and any other risks described in the “Risk Factors” sections of reports and other documents filed by the Company with the Securities and Exchange Commission. Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. Certain of the information contained in this presentation is derived from information provided by industry sources. Although we believe that such information is accurate and that the sources from which it has been obtained are reliable, we cannot guarantee the accuracy of, and have not independently verified, such information. Use of Non-GAAP financial measures In addition to the results presented in accordance with U.S. General Accepted Accounting Principles (“GAAP”), the Company routinely supplements its evaluation with an analysis of certain non-GAAP financial measures. The Company believes these non-GAAP financial measures, in addition to the related GAAP measures, provide meaningful information to investors to help them understand the Company’s operating performance and trends, and to facilitate comparisons with the performance of peers. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of non-GAAP disclosures to the comparable GAAP measures are provided in this presentation. |
1 Adjusted to exclude tax-adjusted FHLB prepayment fees. 2 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation. 3 Why Bridgewater Bank? Q4 2020 Highlights $0.17 Reported $0.32 Adjusted1 • Net income of $5.0 million, which included a non-recurring charge of $5.6 million attributed to prepayment fees on longer term FHLB advances • Pre-provision net revenue2 (“PPNR”) of $16.3 million, which translates to PPNR ROA of 2.30% • Net interest margin of 3.61%; core net interest margin, excluding PPP, of 3.52% compared to Q3 2020 net interest margin of 3.28% and core net interest margin of 3.33% • $1.7 million in PPP deferred origination fees recognized, including approximately $1.1 million associated with the forgiveness of $43.1 million PPP loans, which contributed 16 bps to the net interest margin Diluted EPS Efficiency Ratio2 Return on Average Common Equity Return on Average Assets 0.70% Reported 1.31% Adjusted1 7.45% Reported 13.86% Adjusted1 59.0% Reported 36.6% Adjusted Earnings Deposits • Deposits reached $2.50 billion, an increase of $228.6 million, or 10.1% growth over the prior quarter due to new client acquisition initiatives and pandemic-related accumulation of liquidity by existing clients • Noninterest bearing deposits grew 46% YoY to $671.9 million and account for 27% of total deposits • Cost of interest bearing deposits declined 25 basis points to 0.96% compared to 1.21% in Q3 2020 Loans and Asset Quality • Gross loans reached $2.19 billion, excluding PPP loans, an increase of $110.3 million, or 21.2% annualized growth over the prior quarter • Nonperforming assets to total assets was 0.03% compared to 0.02% in Q3 2020 • Provision of $3.9 million was recorded bringing the allowance to total loans to 1.50% or 1.59% when excluding PPP loans • Net charge-offs to average loans of 0.08% compared to 0.00% in Q3 2020 |
1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation. * Change in basis points for profitability metrics 4 Q4 2020 Financial Results (dollars in thousands) Q4 2020 Q3 2020 % Change Q4 2019 % Change Income Statement Summary Interest Income 30,699 $ 28,493 $ 7.7% 27,419 $ 12.0% Interest Expense 5,858 6,814 (14.0) 7,491 (21.8) Net Interest Income 24,841 21,679 14.6 19,928 24.7 Provision for Loan Losses 3,900 3,750 4.0 600 550.0 Net Interest Income after Provision 20,941 17,929 16.8 19,328 8.3 Noninterest Income 986 1,157 (14.8) 1,112 (11.3) Noninterest Expense 15,258 9,672 57.8 10,489 45.5 Pretax Income 6,669 9,414 (29.2) 9,951 (33.0) Provision for Income Taxes 1,690 2,240 (24.6) 1,380 22.5 Net Income 4,979 $ 7,174 $ (30.6) 9,951 $ (50.0) Diluted EPS 0.17 $ 0.25 $ (32.0) 0.29 $ (41.4) Balance Sheet Summary Total Assets 2,927,345 $ 2,774,564 $ 5.5% 2,268,830 $ 29.0% Loans, Gross 2,326,428 2,259,228 3.0 1,912,038 21.7 Deposits 2,501,636 2,273,044 10.1 1,823,310 37.2 Tangible Common Equity1 262,109 262,088 0.0 241,307 8.6 Profitability Metrics* Q4 2020 Q3 2020 Net Change Q4 2019 Net Change Return on Average Assets (ROA) 0.70% 1.05% (0.35) 1.53% (0.83) Pre-Provision Net Revenue ROA1 2.30 1.94 0.36 2.09 0.21 Return on Average Equity (ROE) 7.45 10.84 (3.39) 14.16 (6.71) Net Interest Margin 3.61 3.28 0.33 3.65 (0.04) Adjusted Efficiency Ratio1 36.6 41.7 (5.10) 44.3 (7.70) QoQ Comparison YoY Comparison |
5 Dollars in thousands Core Earnings Capital Generation Strong Core Earnings Generation Pre-Provision Net Revenue¹, Net Income, and ROA $11,679 $12,157 $13,039 $13,200 $16,298 $8,571 $7,443 $7,598 $7,174 $4,979 2.09% 2.11% 2.00% 1.94% 2.30% 1.53% 1.29% 1.17% 1.05% 0.70% Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 PPNR¹ Net Income PPNR ROA¹ ROA 1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation |
6 Dollars in thousands Solid Capital and Liquidity Consolidated Capital Ratios On & Off-Balance Sheet Liquidity as % of Total Assets 14.2% 15.2% 18.3% 16.8% 18.4% 18.9% 14.0% 16.1% 15.5% 19.8% $749,816 $706,323 $948,234 $894,373 $1,121,145 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 On-Balance Sheet Liquidity as a % of Assets Off-Balance Sheet Liquidity as a % of Assets 10.69% 10.51% 9.94% 9.83% 9.28% 11.39% 11.10% 11.39% 11.03% 10.35% 12.98% 13.38% 15.99% 15.45% 14.58% Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Tier 1 Leverage Ratio Common Equity Tier 1 Capital Ratio Total Risk-Based Capital Ratio |
$241,307 $244,704 $253,799 $262,088 $262,109 10.65% 10.13% 9.23% 9.46% 8.96% Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Tangible Common Equity ($000)¹ Tangible Common Equity to Tangible Assets¹ $4.53 $5.40 $7.22 $8.33 $9.31 2016 2017 2018 2019 2020 Tangible Book Value Per Share¹ 7 Compound Tangible Book Value Strong Capital and Liquidity Compound Tangible Book Value Tangible Book Value Tangible Common Equity 1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation Dollars in thousands |
Twin Cities Minnesota 8 Source: S&P Global Market Intelligence Efficient Branch Footprint Efficient Branch Footprint |
9 Source: S&P Global Market Intelligence; deposit market share data as of 6/30/2020. Twin Cities Deposit Landscape Growing Market Share 2006 Total Market 2020 Total Market Top 10 Institutions Deposits ($000) Share Top 10 Institutions Deposits ($000) Share Wells Fargo & Co. 16,308,234 $ 27.59% U.S. Bancorp 83,341,943 $ 38.23% U.S. Bancorp 15,535,660 $ 26.28% Wells Fargo & Co. 65,154,088 $ 29.88% TCF Financial Corp. 3,686,508 $ 6.24% TCF Financial Corp. 8,226,068 $ 3.77% Marshall & Iisley Corp. 1,729,917 $ 2.93% Bank of Montreal 5,928,722 $ 2.72% Bremer Financial Corp. 1,720,239 $ 2.91% Bremer Financial Corp. 5,801,429 $ 2.66% Associated Banc-Corp 1,162,530 $ 1.97% Ameriprise Bank, fsb 5,300,381 $ 2.43% Klein Financial Inc. 880,289 $ 1.49% Bank of America Corp. 4,634,383 $ 2.13% Inter Savings Bank, fsb 558,660 $ 0.94% Old National Bancorp 3,585,042 $ 1.64% Excel Bank Corp. 505,614 $ 0.86% Bridgewater Bancshares 2,289,454 $ 1.05% American Bancorp 457,414 $ 0.77% Associated Banc-Corp 2,277,702 $ 1.04% Total Deposits 42,545,065 $ 71.98% Total Deposits 186,539,212 $ 85.55% Total Bank Deposits 59,119,026 $ 197 Total Bank Deposits 218,026,091 $ 144 % of Twin Cities MSA Deposits 71.98% % of Twin Cities MSA Deposits 85.55% Total Bank Deposits - Minneapolis-St.Paul-Bloomington, MN-WI MSA |
10 Stable Core Operating Efficiency Efficiency Ratio Operating Expense Composition 1.67 1.68 1.37 1.40 1.34 0.20 0.01 0.27 0.02 0.82 44.3 44.1 40.4 41.7 36.6 49.6 44.4 48.6 42.3 59.0 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Adjustment Factors¹ / Avg. Assets Adj. NIE / Avg. Assets Adjusted Efficiency Ratio¹ Efficiency Ratio¹ $6,235 $6,454 $6,348 $6,550 $6,216 $883 $713 $672 $894 $979 $480 $495 $564 $652 $690 $1,763 $1,999 $1,335 $1,431 $1,614 $1,128 $85 $362 $145 $146 $1,430 $5,613 $10,489 $9,746 $10,711 $9,672 $15,258 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Personnel Occupancy Technology Other Historic Tax Credit Amortization FHLB Advance Prepayment Fees 1 Represents a Non-GAAP financial measure. See Appendix for Non-GAAP reconciliation Dollars in thousands |
$0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 Weekly Average Cash FHLB Term Advances 11 Given the low interest rate environment and extraordinary deposit inflows during the year, the Company took action to remove inefficient, longer term FHLB advances from its balance sheet. By extinguishing the debt early and incurring $5.6 million of prepayment penalties in the fourth quarter, the Company accelerated the future interest expense of these advances into the current period. Ultimately, the strategy better orients the balance sheet, improves the net interest margin outlook and future earnings power of the Company. FHLB Prepayment Strategy Dollars in thousands In November, the Company prepaid $44.0 million of advances with a weighted average rate of 2.65% In December, the Company prepaid $25.0 million of advances with a weighted average rate of 3.20% |
12 ¹Excludes PPP loan yield impact *Amounts calculated on a tax-equivalent basis using statutory federal tax rate of 21% Dollars in thousands Net Interest Margin • 24.7% YoY growth in net interest income • Q4 2020 net interest income includes the accelerated recognition of $1.1 million of PPP loan origination fees, which contributed 16 bps to NIM • Q4 2020 NIM was 3.52% when excluding PPP loans and corresponding deposits • Loan yields¹ only declined 6 bps while total interest bearing deposit costs decreased 25 bps when compared to the linked-quarter Net Interest Margin $19,928 $20,102 $21,342 $21,679 $24,841 3.65% 3.59% 3.38% 3.28% 3.61% Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Net Interest Income Net Interest Margin* |
$1,872,234 $1,954,959 $2,152,398 $2,206,807 $2,301,328 5.33% 5.17% 5.01% 4.93% 4.87% 5.00% 4.90% 4.76% 4.69% 4.59% Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Average Loans Loan Yield Loan Yield Excluding Fees 13 *Yield is adjusted to exclude PPP loans Dollars in thousands Spot Rate 2.58% Spot Rate 4.45%* Spot Rate 0.74% Spot Rate 0.71% Net Interest Drivers * $263,926 $282,914 $295,352 $339,387 $371,463 3.38% 3.43% 3.13% 2.68% 2.70% Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Average Investments Investment Yield $1,341,910 $1,374,864 $1,501,946 $1,597,127 $1,687,342 1.79% 1.67% 1.38% 1.21% 0.96% Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Average Interest Bearing Deposits Cost of Int. Bearing Deposits $1,341,910 $1,374,864 $1,501,946 $1,597,127 $1,687,342 $451,265 $444,201 $603,456 $615,214 $654,299 $177,290 $234,463 $237,056 $214,758 $187,964 1.51% 1.44% 1.17% 1.12% 0.92% Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Avg. Interest Bearing Deposits Avg. Noninterest Bearing Deposits Avg. Borrowings Cost of Liability Funding Average Investments and Yield Average Loans and Yield Cost of Interest Bearing Deposits Cost of Liability Funding |
14 Dollars in thousands Loan Portfolio Repricing Loan Portfolio – Repricing Composition 18.2%, Adjustable 24.6%, Variable 57.1%, Fixed Variable/Adjustable Loans vs. Rate Floors Fixed/Adjustable Years to Maturity/Repricing 88% 77% 63% 61% 80% 80% 12% 23% 37% 39% 20% 20% $250,439 $341,938 $272,698 $195,156 $278,671 $419,743 Less Than 1 Year 1 to 2 Years 2 to 3 Years 3 to 4 Years 4 to 5 Years > 5 Years Fixed Adjustable Index Rate At Floor 0 to -25 bps -26 to -50 bps -51 to -75 bps -76 to -100 bps > -100 bps Total PRIME 310,260 $ 22,349 $ 4,430 $ 31 $ 115 $ 194 $ 337,379 $ Libor 145,579 11,465 - - 13,669 - 170,714 2 Yr FHLB 4,299 - - - - - 4,299 3 Yr FHLB 47,198 - - - - - 47,198 5 Yr FHLB 41,823 - - - - - 41,823 1 Yr CMT 3,780 - - - - - 3,780 2 Yr CMT 6,085 - 8,551 - - 1,732 16,368 3 Yr CMT 60,554 3,706 2,358 7,411 10,108 1,259 85,395 5 Yr CMT 163,547 18,517 2,333 6,415 1,923 1,710 194,445 10 Yr CMT 534 - - - - - 534 Total 783,659 $ 56,038 $ 17,671 $ 13,857 $ 25,816 $ 4,895 $ 901,935 $ |
$47,666 $37,678 $31,661 $22,447 $5,266 $24,984 $34,464 $10,171 $29,189 $11,469 $72,650 $72,142 $41,832 $51,636 $16,735 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Retail Time Deposit Maturities Wholesale Time Deposit Maturities* 15 *Excludes rolling short term brokered funding balances related to interest rate hedges 1 Rate indicated assumes renewal into like term at market rates as of January 22, 2021 Dollars in thousands • $255 million in time deposits maturing in the next 5 quarters at a blended cost of 1.75% Deposit Repricing Opportunities Time Deposit Maturities Maturity Dates Balance* Weighted Avg. Yield Implied Repricing Rate1 % of Total Portfolio Jan-21 27,606 $ 1.91% 0.38% 4.27% Feb-21 22,694 2.00% 0.40% 3.51% Mar-21 22,350 2.06% 0.32% 3.46% Apr-21 24,141 1.33% 0.36% 3.73% May-21 25,538 1.91% 0.44% 3.95% Jun-21 22,463 1.78% 0.46% 3.48% Jul-21 12,147 1.61% 0.42% 1.88% Aug-21 15,930 1.75% 0.44% 2.46% Sep-21 13,755 1.21% 0.38% 2.13% Oct-21 26,882 1.52% 0.48% 4.16% Nov-21 10,262 1.42% 0.42% 1.59% Dec-21 14,492 1.63% 0.42% 2.24% Jan-22 5,878 2.27% 0.46% 0.91% Feb-22 8,339 2.16% 0.54% 1.29% Mar-22 2,518 2.54% 0.41% 0.39% Total 254,995 $ 1.75% 0.41% 39.45% Time Deposit Repricing |
$60,000 $30,000 $18,500 $1,823,310 $1,900,127 $2,242,051 $2,273,044 $2,501,636 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Total Deposits ($000's) PPP Loan Deposits ($000's) 16 • 46% YoY growth¹ in noninterest bearing deposits • Internal deposit growth plan momentum • Capitalizing on unique opportunity to migrate numerous new client relationships neglected or underserved by their primary bank during the multiple rounds of PPP • Robust deposit inflows reflect both successful new client acquisition initiatives and pandemic-related accumulation of liquidity by existing clients. The Company expects balance fluctuations in future periods. Deposit Growth ¹ Excludes $18.5 million of noninterest bearing deposit growth associated with remaining PPP loan funds Dollars in thousands |
23.3% 21.9% 23.6% 24.5% 26.9% 13.0% 13.2% 11.5% 14.5% 14.6% 23.4% 27.6% 25.8% 28.3% 26.3% 26.6% 21.8% 20.4% 19.8% 14.1% 13.7% 15.5% 18.7% 12.9% 18.1% $1,023,508 $1,339,350 $1,560,934 $1,823,310 $2,501,636 2016 2017 2018 2019 2020 Noninterest Bearing Transaction Deposits Interest Bearing Transaction Deposits Savings & Money Market Deposits Time Deposits Brokered Deposits 17 Dollars in thousands Historical Deposit Composition Historical Deposit Composition • Continue to attract in-market lenders and deposit gatherers with loyal client bases from institutions disrupted by M&A • Average core deposits per branch surpassed $275 million • Growth in brokered deposits linked to balance sheet swaps and utilized given their flexible structures, optionality and efficiency not afforded in traditional, retail deposit channels |
$180,228 $181,596 $138,454 $1,912,038 $2,002,817 $2,193,778 $2,259,228 $2,326,428 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Total Gross Loans ($000's) PPP Loans ($000's) 18 Loan Growth • 14.4% YoY loan growth, excluding PPP loans • Q4 2020 gross loans grew $110.3 million, or 21.2% annualized, excluding PPP loans • Continued focus on profitable loan growth and disciplined pricing • Meaningful new and diverse client acquisition opportunities generated through PPP Loan Growth Dollars in thousands |
10.6% 9.7% 12.6% 10.3% 7.3% 17.9% 14.5% 13.6% 13.6% 12.7% 0.4% 0.3% 0.2% 0.2% 0.3% 20.5% 23.6% 24.5% 26.9% 26.9% 6.2% 4.9% 3.9% 3.5% 3.2% 31.2% 30.8% 29.5% 31.0% 30.5% 13.2% 16.2% 15.7% 14.5% 13.1% 6.0% $1,000,739 $1,347,113 $1,664,931 $1,912,038 $2,326,428 2016 2017 2018 2019 2020 Construction & Development 1-4 Family Consumer & Other Multifamily Owner-Occupied CRE Non Owner-Occupied CRE Commercial & Industrial Paycheck Protection Program 19 Dollars in thousands Historical Loan Composition Historical Loan Composition • Strong organic growth • Well diversified portfolio among asset classes • Multifamily niche mitigates concentrations and portfolio risk • Geographic focus on Twin Cities MSA |
20 Investor Real Estate Secured: CRE Nonowner Occupied (“NOO”) Full Payment Interest Only 16% 7-12 Month 1-3 Month 4-6 Month 4-6 Month 1Excludes PPP Loans Modifications as of December 31, 2020 Dollars in thousands Expiration of Modifications as of December 31, 2020 Loan Type CRE Nonowner Occupied Multifamily Construction and Development 1-4 Family Mortgage CRE Owner Occupied Commercial and Industrial Consumer and Other Total Balance September 30, 2020 $ 128,252 $ 42,273 $ - $ 5,589 $ 3,148 $ 12,119 $ - $ 191,381 Modification Expired (114,042) (18,637) - (5,170) (3,148) (1,649) - (142,646) 2nd Modification Granted 21,362 - - - 597 4,834 - 26,793 New Modifications 1,477 - - - 16 68 - 1,561 Net Principal Change (4,840) - - (371) - (5,326) - (10,537) Balance December 31, 2020 $ 32,209 $ 23,636 $ - $ 48 $ 613 $ 10,046 $ - $ 66,552 Total Portfolio Principal Balance1 $ 709,300 $ 626,465 $ 170,217 $ 294,479 $ 75,604 $ 304,220 $ 7,689 $ 2,187,974 % of Total Gross Loans 4.5% 3.8% 0.0% 0.0% 0.8% 3.3% 0.0% 3.0% % on Watchlist 68.1% 0.0% 0.0% 0.0% 0.0% 75.7% 0.0% 44.4% % Classified as Substandard 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 0.9% Linked Quarter % Decline -74.9% -44.1% 0.0% -99.1% -80.5% -17.1% 0.0% -65.2% $1,735 $32,782 $7,926 $24,110 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Modification Expiration |
21 Dollars in thousands Loan Portfolio Composition Loans by Type Loan Portfolio Composition CRE NOO 30.5% Multifamily 26.9% C&D 7.3% 1-4 Family 12.7% CRE OO 3.2% C&I 13.1% PPP 6.0% Consumer & Other 0.3% $2.33 Billion $191,381 $66,552 $0 $50,000 $100,000 $150,000 $200,000 $250,000 9/30/20 12/31/20 Modifications Modification Summary % of Balance Total Investor Real Estate Secured CRE Nonowner Occupied (CRE NOO) 709,300 $ 30.5% Multifamily 626,465 26.9% Construction and Development (C&D) 170,217 7.3% Total Investor Real Estate Secured 1,505,982 64.7% 1-4 Family Residential 294,479 12.7% CRE Owner Occupied (CRE OO) 75,604 3.2% Commercial and Industrial (C&I) 304,220 13.1% SBA Paycheck Protection Program (PPP) 138,454 6.0% Consumer and Other 7,689 0.3% Total Loans, Gross 2,326,428 100.0% |
Dollars in thousands 22 Investor Real Estate Secured: CRE Nonowner Occupied (“NOO”) By Property Type Portfolio Characteristics – CRE NOO Loan Balance Outstanding $709,300 % of Total Loans, Gross 30.5% Number of Loans 364 Average Loan Size $1,949 Loan-to-Value (Weighted Average) 58.8% 5 Year Net Charge-Offs (%) 0.05% Modification Summary Office 26.9% Retail 22.4% Industrial 22.0% Nursing/ Assisted Living 10.3% Hotels 4.4% Restaurant 3.0% Other 11.0% Investor Real Estate Secured: CRE Nonowner Occupied (“NOO”) $709 Million Full Payment Interest Only 23% 77% 7-12 Month 1-3 Month 4-6 Month 4-6 Month $128,252 $32,209 $0 $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 $175,000 9/30/20 12/31/20 Modifications Risk Rating Number of Loans 12/31/20 Total Pass 351 $ 667,336 Watch 9 29,576 Substandard 4 12,388 Total 364 $ 709,300 |
Dollars in thousands Modification Summary $18,489 $3,839 $0 $10,000 $20,000 $30,000 9/30/20 12/31/20 Modifications 23 By Property Square Footage Portfolio Characteristics – CRE NOO Office Loan Balance Outstanding $191,142 % of Total Loans, Gross 8.2% Number of Loans 100 Average Loan Size $1,911 Loan-to-Value (Weighted Average) 59.1% Investor Real Estate Secured: CRE NOO Retail Investor Real Estate Secured: CRE NOO Office 0-50k Sq Ft, 42.0% 50k - 125k Sq Ft, 18.3% 125k - 200k Sq Ft, 13.0% 200k+ Sq Ft, 26.7% $191 Million Risk Rating Number of Loans 12/31/20 Total Pass 99 $ 190,856 Watch -- Substandard 1 286 Total 100 $ 191,142 |
Dollars in thousands Modification Summary $61,858 $6,199 $0 $15,000 $30,000 $45,000 $60,000 $75,000 9/30/20 12/31/20 Modifications 24 By Property Square Footage Portfolio Characteristics – CRE NOO Retail Loan Balance Outstanding $164,840 % of Total Loans, Gross 7.1% Number of Loans 105 Average Loan Size $1,570 Loan-to-Value (Weighted Average) 61.3% Investor Real Estate Secured: CRE NOO Retail Investor Real Estate Secured: CRE NOO Retail 0-25k Sq Ft, 50.1% 25k - 75k Sq Ft, 30.0% 75k - 125k Sq Ft, 12.0% 125k+ Sq Ft, 7.9% $165 Million Risk Rating Number of Loans 12/31/20 Total Pass 99 $ 152,522 Watch 4 9,216 Substandard 2 3,102 Total 105 $ 164,840 |
Dollars in thousands Modification Summary $6,684 $1,565 $0 $2,000 $4,000 $6,000 $8,000 $10,000 9/30/20 12/31/20 Modifications 25 By Property Square Footage Portfolio Characteristics – CRE NOO Industrial Loan Balance Outstanding $156,151 % of Total Loans, Gross 6.7% Number of Loans 67 Average Loan Size $2,331 Loan-to-Value (Weighted Average) 54.6% Investor Real Estate Secured: CRE NOO Retail Investor Real Estate Secured: CRE NOO Industrial 0-50k Sq Ft, 25.1% 50k - 125k Sq Ft, 29.0% 125k+ Sq Ft, 45.9% $156 Million Risk Rating Number of Loans 12/31/20 Total Pass 67 $ 156,151 Watch -- Substandard -- Total 67 $ 156,151 |
26 *Based on state of primary real property collateral if available, otherwise borrower address is used. Investor Real Estate Secured: CRE NOO Hotels By Geography * Portfolio Characteristics – CRE NOO Hotels Loan Balance Outstanding $31,528 % of Total Loans, Gross 1.4% Number of Loans 6 Average Loan Size $5,255 Loan-to-Value (Weighted Average) 63.3% Twin Cities MSA 88.6% MN 11.4% $32 Million Investor Real Estate Secured: CRE NOO Hotels 4-6 Month Full Payment 100% Modification Summary $19,269 $15,720 -$2,000 $2,000 $6,000 $10,000 $14,000 $18,000 $22,000 $26,000 $30,000 9/30/20 12/31/20 Modifications Risk Rating Number of Loans 12/31/20 Total Pass 3 $ 15,808 Watch 3 15,720 Substandard -- Total 6 $ 31,528 Dollars in thousands |
27 By Restaurant Type Portfolio Characteristics – CRE NOO Restaurant Loan Balance Outstanding $21,291 % of Total Loans, Gross 0.9% Number of Loans 17 Average Loan Size $1,252 Loan-to-Value (Weighted Average) 58.7% Investor Real Estate Secured: CRE NOO Restaurant Investor Real Estate Secured: CRE NOO Restaurant Full-Service 34.9% Quick-Service 39.8% Tap Rooms 11.1% Coffee Shops & Bakeries 14.2% $21 Million Interest Only 96% 4% 4-6 Month 7-12 Month Modification Summary Risk Rating Number of Loans 12/31/20 Total Pass 17 $ 21,291 Watch -- Substandard -- Total 17 $ 29,291 $12,501 $4,549 $0 $2,500 $5,000 $7,500 $10,000 $12,500 $15,000 $17,500 $20,000 9/30/20 12/31/20 Modifications Dollars in thousands |
5-19 Units 15.2% 20-49 Units 24.2% 50-99 Units 27.8% 100+ Units 32.9% $626 Million 28 By Unit Type Portfolio Characteristics – Multifamily Loan Balance Outstanding $626,465 % of Total Loans, Gross 26.9% Number of Loans 316 Average Loan Size $1,982 Loan-to-Value (Weighted Average) 62.3% 5 Year Net Charge-Offs (%) 0.00% Investor Real Estate Secured: CRE NOO Restaurant Investor Real Estate Secured: Multifamily Interest Only 44% 56% 7-12 Month 100% Risk Rating Number of Loans 12/31/20 Total Pass 316 $ 626,465 Watch -- Substandard -- Total 316 $ 626,465 Modification Summary $42,273 $23,636 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 9/30/20 12/31/20 Modifications Dollars in thousands |
Residential 34.9% Multifamily 37.9% CRE Other 7.8% Land 19.4% $170 Million 29 By Property Type By Geography* Land Portfolio Composition Investor Real Estate Secured: CRE NOO Restaurant Investor Real Estate Secured: Construction and Development Portfolio Characteristics – C&D Loan Balance Outstanding $170,217 % of Total Loans, Gross 7.3% % Utilization of Commitments 35.9% Number of Loans 283 Average Loan Size $601 Loan-to-Value (Weighted Average) 63.6% 5 Year Net Charge-Offs (%) 0.05% Twin Cities MSA 88.2% MN 0.4% Other States 11.2% Finished Lots, 32.1% Developed Land, 48.7% Undeveloped Land, 19.2% $34 Million Dollars in thousands *Based on state of primary real property collateral if available, otherwise borrower address is used. |
30 Investor Real Estate Secured: CRE Nonowner Occupied (“NOO”) By Property Type Portfolio Characteristics – CRE OO Loan Balance Outstanding $75,604 % of Total Loans, Gross 3.2% Number of Loans 123 Average Loan Size $615 Loan-to-Value (Weighted Average) 58.4% 5 Year Net Charge-Offs (%) 0.04% Office 25.4% Retail 12.8% Industrial 50.3% Restaurant 3.8% Other 7.8% $76 Million Real Estate Secured: CRE Owner Occupied 4-6 Month 4-6 Month Modification Summary $3,148 $613 $0 $1,500 $3,000 $4,500 $6,000 $7,500 9/30/20 12/31/20 Modifications Risk Rating Number of Loans 12/31/20 Total Pass 119 $ 74,734 Watch -- Substandard 4 870 Total 123 $ 75,604 Dollars in thousands |
Dollars in thousands Real Estate and Rental and Leasing, 34.7% Construction, 20.4% Manufacturing, 11.4% Finance & Insurance, 10.3% Other, 9.3% Professional Services, 5.4% Wholesale/Retai l Trade, 4.9% Accomodation & Food Services, 3.6% $304 Million 31 *Distribution by North American Industry Classification System (NAICS). Any industries included in Other category are individually < 3% of total portfolio. By Industry * Portfolio Characteristics – C&I Loan Balance Outstanding $304,220 % of Total Loans, Gross 13.1% Number of Loans 707 Average Loan Size $430 Number of Relationships 447 5 Year Net Charge-Offs (%) 0.03% Commercial and Industrial Full Payment Interest Only 43% 57% 4-6 Month 1-3 Month Modification Summary $12,119 $10,046 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 9/30/20 12/31/20 Modifications Risk Rating Number of Loans 12/31/20 Total Pass 690 $ 289,465 Watch 11 14,516 Substandard 6 239 Total 707 $ 304,220 |
32 Investor Real Estate Secured: CRE Nonowner Occupied (“NOO”) Watch List By Loan Type Substandard List By Loan Type C&I 32.3% CRE NOO Retail 20.6% CRE NOO Hotels 35.1% 1-4 Family 1.6% CRE Other 10.4% $45 Million Asset Quality Dollars in thousands Watch List Characteristics Loan Balance Outstanding $44,795 % of Total Loans, Gross 1.9% Number of Loans 21 Average Loan Size $2,133 Substandard List Characteristics Loan Balance Outstanding $15,164 % of Total Loans, Gross 0.7% Number of Loans 22 Average Loan Size $689 % of Bank Tier 1 Capital + ALLL 4.5% CRE Other 59.3% CRE NOO Retail 20.5% 1-4 Family 9.9% CRE OO 5.7% CRE NOO Office 1.9% C&I 1.6% C&D 1.0% Consumer & Other 0.1% $15 Million |
Dollars in thousands 33 Asset Quality Asset Quality $6,506 $1,720 $581 $461 $775 0.52% 0.11% 0.03% 0.02% 0.03% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 2016 2017 2018 2019 2020 NPAs ($000s) % of Assets $12,333 $16,502 $20,031 $22,526 $34,841 1.23% 1.22% 1.20% 1.18% 1.50% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 2016 2017 2018 2019 2020 ALLL ($000s) % of Gross Loans $969 $6 $46 $205 $435 0.11% 0.00% 0.00% 0.01% 0.02% -0.05% -0.03% 0.00% 0.03% 0.05% 0.08% 0.10% 0.13% $(150) $100 $350 $600 $850 $1,100 $1,350 $1,600 2016 2017 2018 2019 2020 NCOs ($000s) % of Avg. Loans Classified Assets Nonperforming Assets Allowance for Loan Losses Net Charge-Offs $12,194 $5,888 $4,184 $2,695 $15,164 9.73% 3.43% 1.82% 1.01% 4.54% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 2016 2017 2018 2019 2020 Classified Assets ($000s) % of Bank Tier 1 Capital + ALLL |
34 Investor Highlights Investor Highlights |
36 Note: data set includes selected Minnesota bank and thrift M&A transactions in recent years Source: S&P Global Market Intelligence; public filings Core Target Deal Deposit Announcement Total Assets Value Premium In Market / Buyer State Seller State Date ($mm) ($mm) (%) Market Entry MN MN 6/28/2019 $129 NA NA In Market SD MN 5/29/2019 $347 NA NA Market Entry MN MN 4/22/2019 $206 NA NA In Market IN MN 6/21/2018 $1,972 $433.8 14.9 In Market ND MN 2/19/2018 $729 NA NA Market Entry IA MN 11/13/2017 $390 $53.4 10.9 In Market IN MN 8/8/2017 $2,056 $303.3 8.6 Market Entry SD MN 8/3/2017 $409 NA NA Market Entry NE MN 6/28/2016 $209 NA NA In Market MN MN 1/7/2016 $76 $12.0 8.2 In Market ND MN 9/22/2015 $352 $46.0 8.2 In Market MN MN 7/24/2014 $670 $80.0 NA Market Entry IA MN 11/21/2014 $1,172 $133.6 6.0 Market Entry NE MN 7/25/2012 $401 NA NA Market Entry Recent Minnesota M&A Transactions |
37 Source: S&P Global Market Intelligence; most recent quarter data *Dollars in thousands 267 •Commercial Banks located in Minnesota 234 •Commercial Banks located in Minnesota, and with less than $500 million in assets 50 •Commercial Banks located in the Twin Cities MSA, and with less than $500 million in assets 30 •Commercial Banks located in the Twin Cities MSA, with less than $500 million in assets, and a loan to deposits ratio of less than 80% ➢Total Assets (Median) = $181,678* ➢Cost of Funds (Median) = 0.41% Potential Acquisition Targets |
38 1 Non-GAAP financial measures; for further information, see page 39 Consolidated Summary Financial Information - Historical Dollar Values in Millions 2016Y 2017Y 2018Y 2019Y 2020Y Balance Sheet Total Assets 1,260 $ 1,617 $ 1,974 $ 2,269 $ 2,927 $ Gross Loans 1,001 1,347 1,665 1,912 2,326 Deposits 1,024 1,339 1,561 1,823 2,502 Gross Loan/Deposits 97.8% 100.6% 106.7% 104.9% 93.0% \ Capital Total Equity 115 $ 137 $ 221 $ 245 $ 265 $ Tangible Common Equity1 111 133 217 241 262 Tangible Common Equity/Tangible Assets1 8.86% 8.26% 11.03% 10.65% 8.96% Tier 1 Leverage Ratio 9.44% 8.38% 11.23% 10.69% 9.28% Tier 1 Risk-based Capital Ratio 11.49% 9.49% 12.07% 11.39% 10.35% Total Risk-based Capital Ratio 12.74% 12.46% 14.55% 12.98% 14.58% Earnings & Profitability Net Income 13.2 $ 16.9 $ 26.9 $ 31.4 $ 27.2 $ ROAA 1.20% 1.16% 1.51% 1.49% 1.04% ROAE 12.88% 13.18% 13.87% 13.50% 10.51% Net Interest Margin 4.00% 3.92% 3.72% 3.59% 3.46% Non-Int Inc./Avg. Assets 0.23% 0.17% 0.14% 0.18% 0.22% Adjusted Non-Int Exp./Avg. Assets N/A 1.62% 1.59% 1.59% 1.44% Adjusted Efficiency Ratio1 N/A 41.1% 41.7% 43.3% 40.5% Asset Quality NPAs/Assets 0.52% 0.11% 0.03% 0.02% 0.03% Reserves/NPLs 530.91% 1,448.81% 3,447.68% 4,886.33% 4,495.61% Reserves/Loans 1.23% 1.22% 1.20% 1.18% 1.50% NCOs/Average Loans 0.11% 0.00% 0.00% 0.01% 0.02% For the Fiscal Year Ended, |
39 This presentation includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of these non-GAAP financial measures are provided below. The Company believes these non-GAAP financial measures provide useful information to both management and investors to analyze and evaluate the Company’s financial performance. Because not all companies use the same calculations for these measures, the information in this presentation may not be comparable to other similarly titled measures as calculated by other companies. *Efficiency Ratio is adjusted to exclude the historic tax credit amortization and FHLB prepayment fees. Dollars in thousands Reconciliation of Annual Non-GAAP Measures Efficiency Ratio 2016 2017 2017* 2018 2018* 2019 2019* 2020 2020* Noninterest Expense 20,168 $ 25,496 $ 25,496 $ 31,562 $ 31,562 $ 36,932 $ 36,932 $ 45,387 $ 45,387 $ Less: Amortization of Tax Credit Investments - - (1,916) - (3,293) - (3,225) - (738) Less: FHLB Advances Prepayment Fee - - - - - - - - (7,043) Less: Amortization Intangible Assets (104) (191) (191) (191) (191) (191) (191) (191) (191) Adjusted Noninterest Expense 20,064 $ 25,305 $ 23,389 $ 31,371 $ 28,078 $ 36,741 $ 33,516 $ 45,196 $ 37,415 $ Net Interest Income 42,118 $ 54,173 $ 54,173 $ 64,738 $ 64,738 $ 74,132 $ 74,132 $ 87,964 $ 87,964 $ Noninterest Income 2,567 2,536 2,536 2,543 2,543 3,826 3,826 5,839 5,839 Less: (Gain) Loss on Sales of Securities (830) 250 250 125 125 (516) (516) (1,503) (1,503) Adjusted Operating Revenue 43,855 $ 56,959 $ 56,959 $ 67,406 $ 67,406 $ 77,442 $ 77,442 $ 92,300 $ 92,300 $ Efficiency Ratio 45.8% 44.4% 41.1% 46.5% 41.7% 47.4% 43.3% 49.0% 40.5% Tangible Common Equity & Tangible Common Equity/Tangible Assets 2016 2017 2018 2019 2020 Common Equity 115,366 $ 137,162 $ 220,998 $ 244,794 $ 265,405 $ Less: Intangible Assets (4,060) (3,869) (3,678) (3,487) (3,296) Tangible Common Equity 111,306 $ 133,293 $ 217,320 $ 241,307 $ 262,109 $ Total Assets 1,260,394 $ 1,616,612 $ 1,973,741 $ 2,268,830 $ 2,927,345 $ Less: Intangible Assets (4,060) (3,869) (3,678) (3,487) (3,296) Tangible Assets 1,256,334 $ 1,612,743 $ 1,970,063 $ 2,265,343 $ 2,924,049 $ Tangible Common Equity/Tangible Assets 8.86% 8.26% 11.03% 10.65% 8.96% Tangible Book Value Per Share 2016 2017 2018 2019 2020 Book Value Per Common Share 4.69 $ 5.56 $ 7.34 $ 8.45 $ 9.43 $ Less: Effects of Intangible Assets (0.17) (0.16) (0.12) (0.12) (0.12) Tangible Book Value Per Common Share 4.52 $ 5.40 $ 7.22 $ 8.33 $ 9.31 $ Total Common Shares 24,589,861 24,679,861 30,097,274 28,973,572 28,143,493 As of and for the year ended December 31 for year end data, As of and for the year ended December 31 for year end data, |
40 This presentation includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of these non-GAAP financial measures are provided below. The Company believes these non-GAAP financial measures provide useful information to both management and investors to analyze and evaluate the Company’s financial performance. Because not all companies use the same calculations for these measures, the information in this presentation may not be comparable to other similarly titled measures as calculated by other companies. *Efficiency Ratio is adjusted to exclude the historic tax credit amortization and FHLB prepayment fees. Dollars in thousands Reconciliation of Quarterly Non-GAAP Measures Efficiency Ratio December 31, 2019 December 31, 2019 * March 31, 2020 March 31, 2020* June 30, 2020 June 30, 2020* September 30, 2020 September 30, 2020* December 31, 2020 December 31, 2020* Noninterest Expense 10,489 $ 10,489 $ 9,746 $ 9,746 $ 10,711 $ 10,711 $ 9,672 $ 9,672 $ 15,258 $ 15,258 $ Less: Amortization of Tax Credit Investments - (1,128) - (85) - (362) - (145) - (146) Less: FHLB Advances Prepayment Fee - - - - - (1,430) - - - (5,613) Less: Amortization Intangible Assets (48) (48) (48) (48) (47) (47) (48) (48) (48) (48) Adjusted Noninterest Expense 10,441 $ 9,313 $ 9,698 $ 9,613 $ 10,664 $ 8,872 $ 9,624 $ 9,479 $ 15,210 $ 9,451 $ Net Interest Income 19,928 $ 19,928 $ 20,102 $ 20,102 $ 21,342 $ 21,342 $ 21,679 $ 21,679 $ 24,841 $ 24,841 $ Noninterest Income 1,112 1,112 1,719 1,719 1,977 1,977 1,157 1,157 986 986 Less: Gain on Sales of Securities - - (3) (3) (1,361) (1,361) (109) (109) (30) (30) Adjusted Operating Revenue 21,040 $ 21,040 $ 21,818 $ 21,818 $ 21,958 $ 21,958 $ 22,727 $ 22,727 $ 25,797 $ 25,797 $ Efficiency Ratio 49.6% 44.3% 44.4% 44.1% 48.6% 40.4% 42.3% 41.7% 59.0% 36.6% Tangible Common Equity & Tangible Common Equity/Tangible Assets December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Common Equity 244,794 $ 248,143 $ 257,190 $ 265,432 $ 265,405 $ Less: Intangible Assets (3,487) (3,439) (3,391) (3,344) (3,296) Tangible Common Equity 241,307 $ 244,704 $ 253,799 $ 262,088 $ 262,109 $ Total Assets 2,268,830 $ 2,418,730 $ 2,754,463 $ 2,774,564 $ 2,927,345 $ Less: Intangible Assets (3,487) (3,439) (3,391) (3,344) (3,296) Tangible Assets 2,265,343 $ 2,415,291 $ 2,751,072 $ 2,771,220 $ 2,924,049 $ Tangible Common Equity/Tangible Assets 10.65% 10.13% 9.23% 9.46% 8.96% Tangible Book Value Per Share December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Book Value Per Common Share 8.45 $ 8.61 $ 8.92 $ 9.25 $ 9.43 $ Less: Effects of Intangible Assets (0.12) (0.12) (0.12) (0.12) (0.12) Tangible Book Value Per Common Share 8.33 $ 8.49 $ 8.80 $ 9.13 $ 9.31 $ Total Common Shares 28,973,572 28,807,375 28,837,560 28,710,775 28,143,493 As of and for the quarter ended, As of and for the quarter ended, |
41 This presentation includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of these non-GAAP financial measures are provided below. The Company believes these non-GAAP financial measures provide useful information to both management and investors to analyze and evaluate the Company’s financial performance. Because not all companies use the same calculations for these measures, the information in this presentation may not be comparable to other similarly titled measures as calculated by other companies. Dollars in thousands Reconciliation of Quarterly Non-GAAP Measures – Pre-Provision Pre-Provision Net Revenue December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Noninterest Income 1,112 $ 1,719 $ 1,977 $ 1,157 $ 986 $ Less: Gain on sales on Securities - (3) (1,361) (109) (30) Total Operating Noninterest Income 1,112 1,716 616 1,048 956 Plus: Net Interest Income 19,928 20,102 21,342 21,679 24,841 Net Operating Revenue 21,040 21,818 21,958 22,727 25,797 Noninterest Expense 10,489 9,746 10,711 9,672 15,258 Less: Amortization of Tax Credit Investments (1,128) (85) (362) (145) (146) Less: FHLB Advances Prepayment Fees - - (1,430) - (5,613) Total Operating Noninterest Expense 9,361 9,661 8,919 9,527 9,499 Pre-Provision Net Revenue 11,679 $ 12,157 $ 13,039 $ 13,200 $ 16,298 $ Plus: Non-Operating Revenue Adjustments - 3 1,361 109 30 Less: Provision for Loan Losses 600 2,100 3,000 3,750 3,900 Non-Operating Expense Adjustments 1,128 85 1,792 145 5,759 Provision for Income Taxes 1,380 2,532 2,010 2,240 1,690 Net Income 8,571 $ 7,443 $ 7,598 $ 7,174 $ 4,979 $ Average Assets 2,221,370 $ 2,317,040 $ 2,622,272 $ 2,711,755 $ 2,816,032 $ Pre-Provision Net Revenue Return on Average Assets 2.09% 2.11% 2.00% 1.94% 2.30% As of and for the quarter end, |