Exhibit 99.1
Limestone Bancorp Reports Net Income of $2.0 million or $0.27 per Diluted Share for the 2nd Quarter of 2018 and $3.9 million or $0.57 per Diluted Share for the Six Months Ended June 30, 2018
LOUISVILLE, Ky.--(BUSINESS WIRE)--July 18, 2018--Limestone Bancorp, Inc. (NASDAQ: LMST) (“the Company”), parent company of Limestone Bank (“the Bank”), today reported unaudited results for the second quarter of 2018. Net income available to common shareholders for the second quarter of 2018 was $2.0 million, or $0.27 per basic and diluted common share, compared with $1.7 million, or $0.27 per basic and diluted share, for the second quarter of 2017. Net income available to common shareholders for the six months ended June 30, 2018, was $3.9 million, or $0.57 per diluted common share, compared with net income available to common shareholders of $3.3 million, or $0.54 per diluted share, for the six months ended June 30, 2017.
Basic and diluted earnings per common share for the second quarter of 2018 and the first six months of 2018 were impacted by the Company’s issuance of 1.150 million shares of common and non-voting common stock on March 30, 2018. The share issuance raised $14.95 million of new common capital for the Company of which $5.0 million was contributed to the Bank.
Net Interest Income – Net interest income before provision expense increased to $8.4 million for the second quarter of 2018, compared with $7.6 million in the second quarter of 2017. Average loans increased to $734.7 million for the second quarter of 2018, compared with $654.8 million in the second quarter of 2017. Net interest margin increased to 3.57% in the second quarter of 2018, compared with 3.42% in the second quarter of 2017.
The yield on earning assets increased to 4.51% in the second quarter of 2018, compared to 4.11% in the second quarter of 2017 and cost of interest bearing liabilities was 1.13% in the second quarter of 2018, compared to 0.80% in the second quarter of 2017.
Net interest income before provision expense increased to $16.6 million for the first six months of 2018, compared with $15.3 million in the first six months of 2017. Average loans increased to $729.5 million for the first six months of 2018, compared with $652.1 million in the first six months of 2017. Net interest margin increased to 3.60% in the first six months of 2018, compared with 3.49% in the first six months of 2017.
The yield on earning assets increased to 4.48% in the first six months of 2018, compared to 4.17% in the first six months of 2017 and cost of interest bearing liabilities was 1.05% in the first six months of 2018, compared to 0.79% in the first six months of 2017.
Provision and Allowance for Loan Losses – Because of continuing improvement in asset quality and management’s assessment of risk in the loan portfolio, a negative provision for loan losses of $150,000 was recorded in the second quarter and for the first six months of 2018, compared to no provision in the second quarter or first six months of 2017.
The allowance for loan losses to total loans was 1.15% at June 30, 2018, compared to 1.17% at March 31, 2018, and 1.36% at June 30, 2017. The reduced level of the allowance in 2018, compared to 2017 was primarily driven by declining charge-off levels and improving trends in credit quality. Net loan recoveries were $528,000 for the first six months of 2018, compared to net loan charge-offs of $82,000 for the first six months of 2017.
Non-performing Assets – Non-performing assets, which include loans past due 90 days and still accruing, loans on nonaccrual, and other real estate owned (“OREO”), decreased to $7.7 million, or 0.74% of total assets at June 30, 2018, compared with $8.8 million, or 0.88% of total assets at March 31, 2018, and $12.8 million, or 1.34% of total assets at June 30, 2017. Non-performing loans decreased to $3.2 million, or 0.42% of total loans at June 30, 2018, compared with $4.4 million, or 0.60% of total loans at March 31, 2018, and from $6.5 million, or 0.99% of total loans at June 30, 2017. The decrease from the previous quarter was primarily driven by $659,000 in principal payments received on nonaccrual loans, as well as $620,000 in loans transferred to OREO.
OREO at June 30, 2018, increased to $4.5 million, compared with $4.4 million at March 31, 2018, and decreased compared to $6.3 million at June 30, 2017. The Company acquired $620,000 in OREO and sold $284,000 in OREO during the second quarter of 2018. Fair value write-downs arising from lower marketing prices totaled $265,000 in the second quarter of 2018, compared with no write-downs in the second quarter of 2017.
In addition to nonaccrual loans and OREO, loans classified as Troubled Debt Restructures (TDRs) and on accrual totaled $916,000 at June 30, 2018, compared to $922,000 at March 31, 2018 and $1.2 million at June 30, 2017.
Non-interest Income and Expense – Non-interest income for the second quarter of 2018 increased $101,000 to $1.3 million, compared with $1.2 million for the second quarter of 2017. The increase from the second quarter of 2017 was primarily due to an increase in bankcard interchange fees of $52,000 as well as a $43,000 increase in service charges on deposit accounts.
Non-interest expense increased $280,000 to $7.4 million for the second quarter of 2018, compared with $7.1 million for the second quarter of 2017. The increase from the second quarter of 2017 was primarily due to an increase in OREO expense of $240,000 which was primarily attributable to fair value write-downs arising from lower marketing prices.
Capital – At June 30, 2018, the Bank’s Tier 1 leverage ratio was 9.37%, compared with 9.31% at March 31, 2018, and its Total risk-based capital ratio was 12.26% at June 30, 2018, compared with 12.43% at March 31, 2018. At June 30, 2018, the Bank’s Common equity Tier I risk-based capital ratio was 11.23%, compared with 11.18% at March 31, 2018. At June 30, 2018, the Company’s Tier 1 leverage ratio was 8.70%, compared with 9.18% at March 31, 2018, and its Total risk-based capital ratio was 11.76%, compared with 12.56% at March 31, 2018. At June 30, 2018, the Company’s Common equity Tier I risk-based capital ratio was 8.92%, compared with 8.98% at March 31, 2018.
On June 26, 2018, the Company completed the repurchase and retirement of all of its issued and outstanding Series E and Series F Non-Voting Perpetual Preferred Shares for an aggregate price of $3.504 million paid in cash. The Series E and Series F Shares had an aggregate liquidation preference of $10.5 million.
Deferred Tax Assets and Liabilities – The Company has a net deferred tax asset of $30.6 million at June 30, 2018. Deferred tax assets and liabilities are shown below:
| | | | | | |
| | | June 30, | | | December 31, |
| | | 2018 | | | 2017 |
| | | (in thousands) |
| Deferred tax assets: | | | | | | |
| Net operating loss carry-forward | | | $ | 24,795 | | | $ | 25,645 |
| Allowance for loan losses | | | | 1,802 | | | | 1,723 |
| Other real estate owned write-down | | | | 2,500 | | | | 2,432 |
| Other | | | | 2,393 | | | | 2,388 |
| | | | 31,490 | | | | 32,188 |
| Deferred tax liabilities: | | | | | | | | |
| FHLB stock dividends | | | | 557 | | | | 557 |
| Other | | | | 310 | | | | 318 |
| | | | 867 | | | | 875 |
| Net deferred tax asset | | | $ | 30,623 | | | $ | 31,313 |
| | | | | | | | |
About Limestone Bancorp, Inc.
Limestone Bancorp, Inc. (NASDAQ: LMST) is a Louisville, Kentucky-based bank holding company which operates banking centers in 12 counties through its wholly-owned subsidiary Limestone Bank. The Bank’s markets include metropolitan Louisville in Jefferson County and the surrounding counties of Henry and Bullitt, and extend south along the Interstate 65 corridor. The Bank serves southern and south central Kentucky from banking centers in Butler, Green, Hart, Edmonson, Barren, Warren, Ohio and Daviess counties. The Bank also has a banking center in Lexington, Kentucky, the second largest city in the state. Limestone Bank is a traditional community bank with a wide range of personal and business banking products and services.
Forward-Looking Statements
Statements in this press release relating to Limestone Bancorp’s plans, objectives, expectations or future performance are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “may,” “should,” “anticipate,” “estimate,” “expect,” “intend,” “objective,” “possible,” “seek,” “plan,” “strive” or similar words, or negatives of these words, identify forward-looking statements that involve risks and uncertainties. Although the Company's management believes the assumptions underlying the forward-looking statements contained herein are reasonable, any of these assumptions could be inaccurate. Therefore, there can be no assurance the forward-looking statements included herein will prove to be accurate. Factors that could cause actual results to differ from those discussed in forward-looking statements include, but are not limited to: economic conditions both generally and more specifically in the markets in which the Company and its subsidiaries operate; competition for the Company's customers from other providers of financial services; government legislation and regulation, which change from time to time and over which the Company has no control; changes in interest rates; material unforeseen changes in liquidity, results of operations, or financial condition of the Company's customers; and other risks detailed in the Company's filings with the Securities and Exchange Commission, all of which are difficult to predict and many of which are beyond the control of the Company. See Risk Factors outlined in the Company's Form 10-K for the year ended December 31, 2017.
Additional Information
Unaudited supplemental financial information for the second quarter ending June 30, 2018, follows.
| | | | | | | | | | | | | | | | |
LIMESTONE BANCORP, INC. Unaudited Financial Information (in thousands, except share and per share data) |
| | | | | | | | | | | | | | | | |
| | | Three | | | Three | | | Three | | | Six | | | Six | |
| | | Months | | | Months | | | Months | | | Months | | | Months | |
| | | Ended | | | Ended | | | Ended | | | Ended | | | Ended | |
| | | 6/30/18 | | | 3/31/18 | | | 6/30/17 | | | 6/30/18 | | | 6/30/17 | |
| | | | | | | | | | | | | | | | |
| Income Statement Data | | | | | | | | | | | | | | | | | | | | | |
| Interest income | | | $ | 10,585 | | | $ | 10,015 | | | $ | 9,134 | | | $ | 20,600 | | | $ | 18,359 | |
| Interest expense | | | | 2,211 | | | | 1,834 | | | | 1,546 | | | | 4,045 | | | | 3,030 | |
| Net interest income | | | | 8,374 | | | | 8,181 | | | | 7,588 | | | | 16,555 | | | | 15,329 | |
| Provision (negative provision) for loan losses | | | | (150 | ) | | | — | | | | — | | | | (150 | ) | | | — | |
| Net interest income after provision | | | | 8,524 | | | | 8,181 | | | | 7,588 | | | | 16,705 | | | | 15,329 | |
| | | | | | | | | | | | | | | | | | | | | |
| Service charges on deposit accounts | | | | 591 | | | | 568 | | | | 548 | | | | 1,159 | | | | 1,049 | |
| Bank card interchange fees | | | | 446 | | | | 401 | | | | 394 | | | | 847 | | | | 731 | |
| Bank owned life insurance income | | | | 138 | | | | 99 | | | | 104 | | | | 237 | | | | 206 | |
| Gain (loss) on sales and calls of securities, net | | | | (6 | ) | | | — | | | | (5 | ) | | | (6 | ) | | | (5 | ) |
| Other | | | | 178 | | | | 183 | | | | 205 | | | | 361 | | | | 457 | |
| Non-interest income | | | | 1,347 | | | | 1,251 | | | | 1,246 | | | | 2,598 | | | | 2,438 | |
| | | | | | | | | | | | | | | | | | | | | |
| Salaries & employee benefits | | | | 3,885 | | | | 3,788 | | | | 3,803 | | | | 7,673 | | | | 7,750 | |
| Occupancy and equipment | | | | 880 | | | | 895 | | | | 844 | | | | 1,775 | | | | 1,665 | |
| Professional fees | | | | 222 | | | | 205 | | | | 241 | | | | 427 | | | | 544 | |
| Marketing expense | | | | 308 | | | | 300 | | | | 262 | | | | 608 | | | | 516 | |
| FDIC insurance | | | | 139 | | | | 182 | | | | 357 | | | | 321 | | | | 699 | |
| Data processing expense | | | | 307 | | | | 324 | | | | 318 | | | | 631 | | | | 610 | |
| State franchise and deposit tax | | | | 282 | | | | 282 | | | | 225 | | | | 564 | | | | 450 | |
| Deposit account related expense | | | | 221 | | | | 219 | | | | 219 | | | | 440 | | | | 424 | |
| Other real estate owned expense | | | | 237 | | | | 82 | | | | (3 | ) | | | 319 | | | | (19 | ) |
| Litigation and loan collection expense | | | | 48 | | | | 53 | | | | 40 | | | | 101 | | | | 43 | |
| Other | | | | 876 | | | | 839 | | | | 819 | | | | 1,715 | | | | 1,696 | |
| Non-interest expense | | | | 7,405 | | | | 7,169 | | | | 7,125 | | | | 14,574 | | | | 14,378 | |
| | | | | | | | | | | | | | | | | | | | | |
| Income before income taxes | | | | 2,466 | | | | 2,263 | | | | 1,709 | | | | 4,729 | | | | 3,389 | |
| Income tax expense | | | | 483 | | | | 329 | | | | — | | | | 812 | | | | — | |
| Net income | | | | 1,983 | | | | 1,934 | | | | 1,709 | | | | 3,917 | | | | 3,389 | |
| Less: | | | | | | | | | | | | | | | | | | | | | |
| Earnings allocated to participating securities | | | | 27 | | | | 34 | | | | 42 | | | | 66 | | | | 88 | |
| Net income available to common | | | $ | 1,956 | | | $ | 1,900 | | | $ | 1,667 | | | $ | 3,851 | | | $ | 3,301 | |
| | | | | | | | | | | | | | | | | | | | | |
| Weighted average shares – Basic | | | | 7,323,237 | | | | 6,173,397 | | | | 6,096,981 | | | | 6,743,113 | | | | 6,076,112 | |
| Weighted average shares – Diluted | | | | 7,323,237 | | | | 6,173,397 | | | | 6,096,981 | | | | 6,743,113 | | | | 6,076,112 | |
| | | | | | | | | | | | | | | | | | | | | |
| Basic earnings per common share | | | $ | 0.27 | | | $ | 0.31 | | | $ | 0.27 | | | $ | 0.57 | | | $ | 0.54 | |
| Diluted earnings per common share | | | $ | 0.27 | | | $ | 0.31 | | | $ | 0.27 | | | $ | 0.57 | | | $ | 0.54 | |
| Cash dividends declared per common share | | | $ | 0.00 | | | $ | 0.00 | | | $ | 0.00 | | | $ | 0.00 | | | $ | 0.00 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
LIMESTONE BANCORP, INC. Unaudited Financial Information (in thousands, except share and per share data) |
| | | | | | | | | | | | | | | | |
| | | Three | | | Three | | | Three | | | Six | | | Six | |
| | | Months | | | Months | | | Months | | | Months | | | Months | |
| | | Ended | | | Ended | | | Ended | | | Ended | | | Ended | |
| | | 6/30/18 | | | 3/31/18 | | | 6/30/17 | | | 6/30/18 | | | 6/30/17 | |
| | | | | | | | | | | | | | | | |
| Average Balance Sheet Data | | | | | | | | | | | | | | | | | | | | | |
| Assets | | | $ | 1,013,008 | | | $ | 987,390 | | | $ | 941,982 | | | $ | 1,000,270 | | | $ | 939,811 | |
| Loans | | | | 734,709 | | | | 724,203 | | | | 654,801 | | | | 729,485 | | | | 652,078 | |
| Earning assets | | | | 943,023 | | | | 915,762 | | | | 899,393 | | | | 929,468 | | | | 895,862 | |
| Deposits | | | | 842,757 | | | | 834,695 | | | | 870,138 | | | | 838,748 | | | | 861,893 | |
| Long-term debt and advances | | | | 76,209 | | | | 74,063 | | | | 29,759 | | | | 75,142 | | | | 32,840 | |
| Interest bearing liabilities | | | | 783,123 | | | | 777,140 | | | | 773,301 | | | | 780,148 | | | | 770,397 | |
| Stockholders’ equity | | | | 88,701 | | | | 73,205 | | | | 37,018 | | | | 80,996 | | | | 35,384 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Performance Ratios | | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | | 0.79 | % | | | 0.79 | % | | | 0.73 | % | | | 0.79 | % | | | 0.73 | % |
| Return on average equity | | | | 8.97 | | | | 10.71 | | | | 18.52 | | | | 9.75 | | | | 19.31 | |
| Yield on average earning assets (tax equivalent) | | | | 4.51 | | | | 4.45 | | | | 4.11 | | | | 4.48 | | | | 4.17 | |
| Cost of interest bearing liabilities | | | | 1.13 | | | | 0.96 | | | | 0.80 | | | | 1.05 | | | | 0.79 | |
| Net interest margin (tax equivalent) | | | | 3.57 | | | | 3.63 | | | | 3.42 | | | | 3.60 | | | | 3.49 | |
| Efficiency ratio | | | | 76.13 | | | | 76.01 | | | | 80.61 | | | | 76.07 | | | | 80.90 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Loan Charge-off Data | | | | | | | | | | | | | | | | | | | | | |
| Loans charged-off | | | $ | (293 | ) | | $ | (47 | ) | | $ | (307 | ) | | $ | (340 | ) | | $ | (633 | ) |
| Recoveries | | | | 497 | | | | 371 | | | | 226 | | | | 868 | | | | 551 | |
| Net recoveries (charge-offs) | | | $ | 204 | | | $ | 324 | | | $ | (81 | ) | | $ | 528 | | | $ | (82 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Nonaccrual Loan Activity | | | | | | | | | | | | | | | | | | | | | |
| Nonaccrual loans at beginning of period | | | $ | 4,370 | | | $ | 5,457 | | | $ | 8,102 | | | $ | 5,457 | | | $ | 9,216 | |
| Net principal pay-downs | | | | (659 | ) | | | (995 | ) | | | (1,944 | ) | | | (1,654 | ) | | | (3,396 | ) |
| Charge-offs | | | | (209 | ) | | | (1 | ) | | | (242 | ) | | | (210 | ) | | | (471 | ) |
| Loans foreclosed and transferred to OREO | | | | (620 | ) | | | (110 | ) | | | (40 | ) | | | (730 | ) | | | (140 | ) |
| Loans returned to accrual status | | | | — | | | | — | | | | (63 | ) | | | — | | | | (199 | ) |
| Loans placed on nonaccrual during the period | | | | 288 | | | | 19 | | | | 696 | | | | 307 | | | | 1,499 | |
| Nonaccrual loans at end of period | | | $ | 3,170 | | | $ | 4,370 | | | $ | 6,509 | | | $ | 3,170 | | | $ | 6,509 | |
| | | | | | | | | | | | | | | | | | | | | |
| Troubled Debt Restructurings (TDRs) | | | | | | | | | | | | | | | | | | | | | |
| Accruing | | | $ | 916 | | | $ | 922 | | | $ | 1,235 | | | $ | 916 | | | $ | 1,235 | |
| Nonaccrual | | | | 700 | | | | 1,362 | | | | 1,967 | | | | 700 | | | | 1,967 | |
| Total | | | $ | 1,616 | | | $ | 2,284 | | | $ | 3,202 | | | $ | 1,616 | | | $ | 3,202 | |
| | | | | | | | | | | | | | | | | | | | | |
| Other Real Estate Owned (OREO) Activity | | | | | | | | | | | | | |
| OREO at beginning of period | | | $ | 4,385 | | | $ | 4,409 | | | $ | 6,571 | | | $ | 4,409 | | | $ | 6,821 | |
| Real estate acquired | | | | 620 | | | | 110 | | | | 40 | | | | 730 | | | | 140 | |
| Valuation adjustment write-downs | | | | (265 | ) | | | (60 | ) | | | — | | | | (325 | ) | | | — | |
| Proceeds from sales of properties | | | | (284 | ) | | | (70 | ) | | | (320 | ) | | | (354 | ) | | | (708 | ) |
| Gain (loss) on sales, net | | | | 54 | | | | (4 | ) | | | 27 | | | | 50 | | | | 65 | |
| OREO at end of period | | | $ | 4,510 | | | $ | 4,385 | | | $ | 6,318 | | | $ | 4,510 | | | $ | 6,318 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | |
LIMESTONE BANCORP, INC. Unaudited Financial Information (in thousands, except share and per share data) |
| | | | | |
| | | As of | |
| | | 6/30/18 | | | 3/31/18 | | | 12/31/17 | | | 9/30/17 | | | 6/30/17 | |
| | | | | | | | | | | | | | | | | | | | | |
| Assets | | | | | | | | | | | | | | | | | | | | | |
| Loans | | | $ | 749,234 | | | $ | 729,432 | | | $ | 712,115 | | | $ | 682,511 | | | $ | 654,938 | |
| Allowance for loan losses | | | | (8,580 | ) | | | (8,526 | ) | | | (8,202 | ) | | | (8,977 | ) | | | (8,885 | ) |
| Net loans | | | | 740,654 | | | | 720,906 | | | | 703,913 | | | | 673,534 | | | | 646,053 | |
| Loans held for sale | | | | — | | | | — | | | | 70 | | | | — | | | | — | |
| Securities held to maturity | | | | — | | | | — | | | | — | | | | 41,424 | | | | 41,635 | |
| Securities available for sale | | | | 178,896 | | | | 160,812 | | | | 152,720 | | | | 149,797 | | | | 154,993 | |
| Federal funds sold & interest bearing deposits | | | | 33,534 | | | | 30,073 | | | | 25,966 | | | | 37,812 | | | | 51,413 | |
| Cash and due from financial institutions | | | | 7,013 | | | | 7,610 | | | | 8,137 | | | | 9,557 | | | | 9,297 | |
| Premises and equipment | | | | 16,813 | | | | 16,789 | | | | 16,789 | | | | 16,975 | | | | 17,164 | |
| Bank owned life insurance | | | | 15,456 | | | | 15,323 | | | | 15,229 | | | | 15,131 | | | | 15,033 | |
| FHLB Stock | | | | 7,323 | | | | 7,323 | | | | 7,323 | | | | 7,323 | | | | 7,323 | |
| Other real estate owned | | | | 4,510 | | | | 4,385 | | | | 4,409 | | | | 6,330 | | | | 6,318 | |
| Deferred taxes, net | | | | 30,623 | | | | 30,997 | | | | 31,313 | | | | — | | | | — | |
| Accrued interest receivable and other assets | | | | 5,699 | | | | 5,886 | | | | 4,932 | | | | 5,082 | | | | 5,228 | |
| Total Assets | | | $ | 1,040,521 | | | $ | 1,000,104 | | | $ | 970,801 | | | $ | 962,965 | | | $ | 954,457 | |
| | | | | | | | | | | | | | | | | | | | | |
| Liabilities and Equity | | | | | | | | | | | | | | | | | | | | | |
| Certificates of deposit | | | $ | 435,454 | | | $ | 431,921 | | | $ | 424,235 | | | $ | 445,577 | | | $ | 458,068 | |
| Interest checking | | | | 88,955 | | | | 92,048 | | | | 99,383 | | | | 94,523 | | | | 97,169 | |
| Money market | | | | 150,048 | | | | 150,974 | | | | 151,388 | | | | 156,905 | | | | 153,700 | |
| Savings | | | | 35,220 | | | | 35,984 | | | | 34,632 | | | | 35,946 | | | | 36,363 | |
| Total interest bearing deposits | | | | 709,677 | | | | 710,927 | | | | 709,638 | | | | 732,951 | | | | 745,300 | |
| Demand deposits | | | | 136,553 | | | | 135,984 | | | | 137,386 | | | | 133,896 | | | | 129,518 | |
| Total deposits | | | | 846,230 | | | | 846,911 | | | | 847,024 | | | | 866,847 | | | | 874,818 | |
| FHLB advances | | | | 71,630 | | | | 26,752 | | | | 11,797 | | | | 16,847 | | | | 2,158 | |
| Junior subordinated debentures | | | | 21,000 | | | | 23,025 | | | | 23,250 | | | | 23,475 | | | | 23,700 | |
| Senior debt | | | | 10,000 | | | | 10,000 | | | | 10,000 | | | | 10,000 | | | | 10,000 | |
| Accrued interest payable and other liabilities | | | | 5,262 | | | | 5,186 | | | | 6,057 | | | | 5,728 | | | | 5,388 | |
| Total liabilities | | | | 954,122 | | | | 911,874 | | | | 898,128 | | | | 922,897 | | | | 916,064 | |
| | | | | | | | | | | | | | | | | | | | | |
| Preferred stockholders’ equity | | | | — | | | | 2,771 | | | | 2,771 | | | | 2,771 | | | | 2,771 | |
| Common stockholders’ equity | | | | 86,399 | | | | 85,459 | | | | 69,902 | | | | 37,297 | | | | 35,622 | |
| Total stockholders’ equity | | | | 86,399 | | | | 88,230 | | | | 72,673 | | | | 40,068 | | | | 38,393 | |
| Total Liabilities and Stockholders’ Equity | | | $ | 1,040,521 | | | $ | 1,000,104 | | | $ | 970,801 | | | $ | 962,965 | | | $ | 954,457 | |
| | | | | | | | | | | | | | | | | | | | | |
| Ending shares outstanding | | | | 7,454,993 | | | | 7,409,864 | | | | 6,259,864 | | | | 6,259,864 | | | | 6,259,864 | |
| Book value per common share | | | $ | 11.59 | | | $ | 11.53 | | | $ | 11.17 | | | $ | 5.96 | | | $ | 5.69 | |
| Tangible book value per common share | | | | 11.59 | | | | 11.53 | | | | 11.17 | | | | 5.96 | | | | 5.69 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | |
LIMESTONE BANCORP, INC. Unaudited Financial Information (in thousands, except share and per share data) |
| | | | | |
| | | As of | |
| | | 6/30/18 | | | 3/31/18 | | | 12/31/17 | | | 9/30/17 | | | 6/30/17 | |
| Asset Quality Data | | | | | | | | | | | | | | | | | | | | | |
| Loan 90 days or more past due still on accrual | | | $ | — | | | $ | — | | | $ | 1 | | | $ | — | | | $ | — | |
| Nonaccrual loans | | | | 3,170 | | | | 4,370 | | | | 5,457 | | | | 5,769 | | | | 6,509 | |
| Total non-performing loans | | | | 3,170 | | | | 4,370 | | | | 5,458 | | | | 5,769 | | | | 6,509 | |
| Real estate acquired through foreclosures | | | | 4,510 | | | | 4,385 | | | | 4,409 | | | | 6,330 | | | | 6,318 | |
| Other repossessed assets | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Total non-performing assets | | | $ | 7,680 | | | $ | 8,755 | | | $ | 9,867 | | | $ | 12,099 | | | $ | 12,827 | |
| | | | | | | | | | | | | | | | | | | | | |
| Non-performing loans to total loans | | | | 0.42 | % | | | 0.60 | % | | | 0.77 | % | | | 0.85 | % | | | 0.99 | % |
| Non-performing assets to total assets | | | | 0.74 | | | | 0.88 | | | | 1.02 | | | | 1.26 | | | | 1.34 | |
| Allowance for loan losses to non-performing loans | | | | 270.66 | | | | 195.10 | | | | 150.27 | | | | 155.61 | | | | 136.50 | |
| | | | | | | | | | | | | | | | | | | | | |
| Allowance for loans evaluated individually | | | $ | 319 | | | $ | 282 | | | $ | 219 | | | $ | 425 | | | $ | 254 | |
| Loans evaluated individually for impairment | | | | 4,557 | | | | 5,775 | | | | 7,173 | | | | 7,509 | | | | 8,273 | |
| Allowance as % of loans evaluated individually | | | | 7.00 | % | | | 4.88 | % | | | 3.05 | % | | | 5.66 | % | | | 3.07 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Allowance for loans evaluated collectively | | | $ | 8,261 | | | $ | 8,244 | | | $ | 7,983 | | | $ | 8,552 | | | $ | 8,631 | |
| Loans evaluated collectively for impairment | | | | 744,677 | | | | 723,657 | | | | 704,942 | | | | 675,002 | | | | 646,665 | |
| Allowance as % of loans evaluated collectively | | | | 1.11 | % | | | 1.14 | % | | | 1.13 | % | | | 1.27 | % | | | 1.33 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan losses to total loans | | | | 1.15 | % | | | 1.17 | % | | | 1.15 | % | | | 1.32 | % | | | 1.36 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Loans by Risk Category | | | | | | | | | | | | | | | | | | | | | |
| Pass | | | $ | 720,446 | | | $ | 695,507 | | | $ | 673,033 | | | $ | 633,203 | | | $ | 610,356 | |
| Watch | | | | 19,091 | | | | 17,938 | | | | 25,715 | | | | 35,167 | | | | 29,433 | |
| Special Mention | | | | 115 | | | | 162 | | | | 164 | | | | 598 | | | | 604 | |
| Substandard | | | | 9,582 | | | | 15,825 | | | | 13,203 | | | | 13,543 | | | | 14,545 | |
| Doubtful | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Total | | | $ | 749,234 | | | $ | 729,432 | | | $ | 712,115 | | | $ | 682,511 | | | $ | 654,938 | |
| | | | | | | | | | | | | | | | | | | | | |
| Loans by Past Due Status | | | | | | | | | | | | | | | | | | | | | |
| Past due loans: | | | | | | | | | | | | | | | | | | | | | |
| 30 – 59 days | | | $ | 1,134 | | | $ | 6,402 | | | $ | 1,478 | | | $ | 872 | | | $ | 1,328 | |
| 60 – 89 days | | | | 538 | | | | 472 | | | | 171 | | | | 612 | | | | 765 | |
| 90 days or more | | | | — | | | | — | | | | 1 | | | | — | | | | — | |
| Nonaccrual loans | | | | 3,170 | | | | 4,370 | | | | 5,457 | | | | 5,769 | | | | 6,509 | |
| Total past due and nonaccrual loans | | | $ | 4,842 | | | $ | 11,244 | | | $ | 7,107 | | | $ | 7,253 | | | $ | 8,602 | |
| | | | | | | | | | | | | | | | | | | | | |
| Risk-based Capital Ratios - Company | | | | | | | | | | | | | | | | | | | | | |
| Tier I leverage ratio | | | | 8.70 | % | | | 9.18 | % | | | 7.11 | % | | | 5.85 | % | | | 5.65 | % |
| Common equity Tier I risk-based capital ratio | | | | 8.92 | | | | 8.98 | | | | 6.92 | | | | 5.49 | | | | 5.58 | |
| Tier I risk-based capital ratio | | | | 10.41 | | | | 11.03 | | | | 8.44 | | | | 7.31 | | | | 7.46 | |
| Total risk-based capital ratio | | | | 11.76 | | | | 12.56 | | | | 10.55 | | | | 10.05 | | | | 10.44 | |
| | | | | | | | | | | | | | | | | | | | | |
| Risk-based Capital Ratios – Limestone Bank | | | | | | | | | | | | | | | | | | | | | |
| Tier I leverage ratio | | | | 9.37 | % | | | 9.31 | % | | | 8.70 | % | | | 7.73 | % | | | 7.54 | % |
| Common equity Tier I risk-based capital ratio | | | | 11.23 | | | | 11.18 | | | | 10.35 | | | | 9.66 | | | | 9.97 | |
| Tier I risk-based capital ratio | | | | 11.23 | | | | 11.18 | | | | 10.35 | | | | 9.66 | | | | 9.97 | |
| Total risk-based capital ratio | | | | 12.26 | | | | 12.43 | | | | 11.61 | | | | 11.10 | | | | 11.50 | |
| | | | | | | | | | | | | | | | | | | | | |
| FTE employees | | | | 217 | | | | 214 | | | | 217 | | | | 217 | | | | 221 | |
| | | | | | | | | | | | | | | | | | | | | |
Non-GAAP Financial Measures Reconciliation
The efficiency ratio is a non-GAAP measure of expense control relative to revenue from net interest income and fee income. The efficiency ratio is calculated by dividing total non-interest expenses as determined under GAAP by net interest income and total non-interest income, but excluding net gains on the sale of securities from the calculation. Management believes this provides a reasonable measure of primary banking expenses relative to primary banking revenue.
| | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | 6/30/18 | | | 3/31/18 | | | 6/30/17 | | | 6/30/18 | | | 6/30/17 | |
| Efficiency Ratio | | | (in thousands) | |
| | | | |
| Net interest income | | | $ | 8,374 | | | $ | 8,181 | | | $ | 7,588 | | | $ | 16,555 | | | $ | 15,329 | |
| Non-interest income | | | | 1,347 | | | | 1,251 | | | | 1,246 | | | | 2,598 | | | | 2,438 | |
| Less: Net gain (loss) on securities | | | | (6 | ) | | | — | | | | (5 | ) | | | (6 | ) | | | (5 | ) |
| Revenue used for efficiency ratio | | | | 9,727 | | | | 9,432 | | | | 8,839 | | | | 19,159 | | | | 17,772 | |
| Non-interest expense | | | | 7,405 | | | | 7,169 | | | | 7,125 | | | | 14,574 | | | | 14,378 | |
| | | | | | | | | | | | | | | | | | | | | |
| Efficiency ratio | | | | 76.13 % | | | | 76.01 % | | | | 80.61 % | | | | 76.07 % | | | | 80.90 % | |
| | | | | | | | | | | | | | | | | | | | | |
CONTACT:
Limestone Bancorp, Inc.
John T. Taylor, 502-499-4800
Chief Executive Officer
