Exhibit 99.1
News Release
Contact: Glen L. Stiteley, Chief Financial Officer
(815) 725-1885
Source: First Community Financial Partners, Inc.
First Community Financial Partners, Inc. Announces First Quarter 2016 Financial Results
Investments for future: Announcement of strategic acquisition and addition of commercial lending team
First Quarter Highlights:
| |
| • | Announced the signing of a definitive agreement to acquire Mazon State Bank, a neighboring bank with $85 million in total assets, $33 million in total loans, $48 million in residential mortgage loan serviced, and $74 million in deposits as of March 31, 2016, 99.59% of which are core deposits |
| |
| • | Announced the addition of six seasoned commercial bankers |
| |
| • | Asset growth of $20.2 million, or 1.94%, from the fourth quarter |
| |
| • | Loan growth of $2.0 million, or 0.25%, from the fourth quarter |
| |
| • | Deposit growth of $13.0 million, or 1.50%, from the fourth quarter |
| |
| • | Noninterest bearing deposit growth of $8.4 million, or 4.26%, from the fourth quarter |
| |
| • | Diluted earnings per share (“EPS”) of $0.12 for the first quarter of 2016; $0.03 or 33.33% per diluted share increase over prior year |
•Pre-tax, pre-provision core income grew by $562,000, or 22.27%, compared to first quarter of 2015
| |
| • | Net interest income growth of $1.1 million, or 15.49%, compared to the first quarter of 2015 |
| |
| • | No loan loss provision in first quarter of 2016 or 2015, reflecting continued overall improvement in asset quality |
| |
| • | Noninterest expense increased by $779,000, or 15.11%, year-over-year primarily due to the addition of six commercial bankers in the first quarter of 2016 |
| |
| • | Shareholders’ equity increased $3.7 million or 3.64% to $106.8 million million year-over-year; tangible equity ratio of 10.07% as of March 31, 2016 |
JOLIET, IL, April 27, 2016 -- First Community Financial Partners, Inc. (NASDAQ:FCFP) (“First Community” or the “Company”), the parent company of First Community Financial Bank (the “Bank”), today reported financial results as of and for the three months ended March 31, 2016.
Net income applicable to shareholders for the quarter ended March 31, 2016 was $2.0 million, or $0.12 per diluted share, compared with $1.6 million, or $0.09 per diluted share, for the quarter ended March 31, 2015. Earnings in the first quarter of 2016 reflected year-over-year growth in net interest income offset by growth in expenses primarily related to the addition of six commercial bankers and one leasing officer. During the first quarter of 2016, the Company also incurred $100,000 of professional fees related to the acquisition of Mazon State Bank.
From the Mazon State Bank merger, First Community anticipates it will be able to achieve an earnback of less than one year on the estimated dilution to tangible book value and expects accretion to its earnings per share in 2016 and beyond. Subject to regulatory approval, the closing of the transaction is expected to occur during the third quarter of 2016.
Roy Thygesen, CEO said, “We have made some key investments in the first quarter which we expect will facilitate a transformative year for First Community in 2016. The Mazon State Bank organization is a strong cultural and geographic fit for First Community. Additionally, we invested in acquiring a group of talented commercial bankers
and expect the merger with Mazon State Bank will help facilitate funding our anticipated loan growth with low-cost core deposits.
Our investments this quarter are consistent with our strategic focus on efficient organic growth along with prudent strategic acquisitions. With our commitment to highly personalized service, we believe these recent activities continue to build on the attractiveness of our organization to existing and potential customers, as well as talented potential strategic hires. We are confident these activities will continue to build the value of our Company for shareholders.”
First Quarter 2016 Financial Results
Loans
Total loans increased $2.0 million, or 0.25%, since the end of the fourth quarter and $62.4 million or 8.77% year-over-year. Commercial loans grew $1.5 million, or 0.85%, since the end of the fourth quarter and $4.9 million, or 2.76%, year-over-year. Commercial real estate loans decreased $2.8 million, or 0.73%, since the end of the fourth quarter, but grew $9.2 million, or 2.49%, year-over-year. Since the end of the fourth quarter, five commercial real estate loans totaling $22.0 million were paid off, $15.3 million of which was due to the sale of the business/property. Residential real estate loans grew $3.3 million, or 2.46%, since the end of the fourth quarter and $36.8 million, or 35.90%, year-over-year. Construction loans were up $5.7 million, or 25.89%, since the end of the fourth quarter and $9.2 million, or 49.81%, year-over-year.
Deposits
Total deposits increased $13.0 million or 1.50% since the end of the fourth quarter and $77.9 million, or 9.72%, year-over-year. The growth in deposits has included growth in lower cost transactional accounts. Noninterest bearing demand deposits increased $8.4 million, or 4.26%, since the end of the fourth quarter 2015 and $36.7 million or, 21.87%, year-over-year. Our focus on relationship banking and growth in transactional accounts has resulted in a decline in time deposits of $200.4 million, or 67.37%, to $294.1 million at March 31, 2016 from $297.5 million at December 31, 2015. The ratio of time deposits to total deposits has steadily improved from 38.78% at March 31, 2015 to 34.36% at December 31, 2015 and 33.46% at March 31, 2016.
Net Interest Income and Margin
First quarter 2016 net interest income was up $131,000, or 1.60%, from the fourth quarter of 2015. The Company’s net interest margin was 3.36% for the first quarter of 2016, compared to 3.29% in the fourth quarter 2015. The increase in net interest income was due to continued growth in the loan portfolio and continued reduction in time deposit balances as a source of funding.
First quarter 2016 net interest income was up $1.1 million or 15.49% from the first quarter of 2015. The Company’s net interest margin was 3.36% for the first quarter of 2016, compared to 3.23% for the first quarter of 2015. The increase in net interest income was due to growth in the loan portfolio, continued reduction in time deposit balances, and refinancing of our subordinated debentures with lower-cost secured borrowings at the end of the second quarter 2015.
Noninterest Income and Expense
Noninterest income decreased $204,000, or 26.88%, from the fourth quarter of 2015 but increased $110,000, or 24.72%, from the first quarter of 2015. The decrease from the fourth quarter was due to no securities gains in the first quarter of 2016 versus $212,000 of securities gains in the fourth quarter of 2015. The increase from the first quarter of 2015 was largely due to $110,000 in additional bank owned life insurance (“BOLI”) income due to a $12.0 million purchase of BOLI in the fourth quarter of 2015.
Noninterest expense increased $891,000, or 17.66%, from the fourth quarter of 2015 and $779,000, or 15.11%, from the first quarter of 2015. The increase was in relation to the addition of six commercial banking officers and one leasing officer during the first quarter of 2016. In addition, $100,000 of professional fees were incurred during the first quarter of 2016 as a result of the work related to the acquisition of Mazon State Bank.
Asset Quality
Total nonperforming assets increased from the fourth quarter by $486,000, or 6.98%, to $7.4 million at March 31, 2016. The ratio of nonperforming assets to total assets was 0.70% at March 31, 2016.
The Company had net charge-offs of $406,000 in the first quarter of 2016, compared to net charge-offs of $127,000 in the first quarter of 2015 and net recoveries of $503,000 in the fourth quarter of 2015.
The Company’s allowance for loan losses to nonperforming loans and allowance to loans was 528.19% and 1.46% at March 31, 2016, respectively.
The Company did not take a provision for loan losses in the first quarter of 2016, or for the same period in 2015, as a result of continued improvement in the level of nonperforming loans and continued lower levels of net charge-offs.
About First Community Financial Partners, Inc.: First Community Financial Partners, Inc., headquartered in Joliet, Illinois, is a bank holding company whose common stock trades on the NASDAQ Capital Market (NASDAQ:FCFP). First Community Financial Partners has one bank subsidiary, First Community Financial Bank. First Community Financial Bank, based in Plainfield, Illinois, is a wholly owned banking subsidiary of First Community Financial Partners, with locations in Joliet, Plainfield, Homer Glen, Channahon, Naperville and Burr Ridge, Illinois. The Bank is dedicated to its founding principles by being actively involved in the communities it serves and providing exceptional personal service delivered by experienced local professionals.
Special Note Concerning Forward-Looking Statements
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Any statements in this release other than statements of historical facts, including statements about management’s beliefs and expectations, are forward-looking statements and should be evaluated as such. These statements are made on the basis of management’s views and assumptions regarding future events and business performance. Words such as “estimate,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “target,” “project,” “should,” “may,” “will” and similar expressions are intended to identify forward-looking statements. Forward-looking statements (including oral representations) involve risks and uncertainties that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. These risks and uncertainties involve a number of factors related to the businesses of First Community and its wholly owned bank subsidiary, including: risks associated with First Community’s possible pursuit of acquisitions; unexpected results of acquisitions, including the planned acquisition of Mazon State Bank; economic conditions in First Community’s, and its wholly owned bank subsidiary’s; service areas; system failures; losses of large customers; disruptions in relationships with third party vendors; losses of key management personnel and the inability to attract and retain highly qualified management personnel in the future; the impact of legislation and regulatory changes on the banking industry, including the implementation of the Basel III capital reforms; losses related to cyber-attacks; and liability and compliance costs regarding banking regulations. These and other risks and uncertainties are discussed in more detail in First Community’s filings with the Securities and Exchange Commission, including First Community’s Annual Report on Form 10-K filed on March 11, 2016.
Many of these risks are beyond management’s ability to control or predict. All forward-looking statements attributable to First Community, and its wholly owned bank subsidiary, or persons acting on behalf of each of them are expressly qualified in their entirety by the cautionary statements and risk factors contained in this communication. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. Furthermore, forward-looking statements speak only as of the date they are made. Except as required under the federal securities laws or the rules and regulations of the Securities and Exchange Commission, First Community does not undertake any obligation to update or review any forward-looking information, whether as a result of new information, future events or otherwise.
|
| | | | | | | | | | | | | | | |
| FINANCIAL SUMMARY | | | |
|
| | | | | |
| March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 |
| Period-End Balance Sheet |
| | | |
|
| (In thousands)(Unaudited) | | | |
|
| Assets |
| | | |
|
| Mortgage loans held for sale | $ | 133 |
| $ | 400 |
| $ | — |
| $ | 1,449 |
| $ | 1,729 |
|
| Commercial real estate | 378,304 |
| 381,098 |
| 368,896 |
| 363,575 |
| 369,113 |
|
| Commercial | 181,142 |
| 179,623 |
| 180,674 |
| 187,780 |
| 176,281 |
|
| Residential 1-4 family | 139,208 |
| 135,864 |
| 126,316 |
| 109,819 |
| 102,432 |
|
| Multifamily | 31,511 |
| 34,272 |
| 30,771 |
| 29,829 |
| 26,015 |
|
| Construction and land development | 27,798 |
| 22,082 |
| 19,451 |
| 19,612 |
| 18,555 |
|
| Farmland and agricultural production | 9,060 |
| 9,989 |
| 8,984 |
| 8,604 |
| 8,869 |
|
| Consumer and other | 7,250 |
| 9,391 |
| 7,963 |
| 8,578 |
| 10,570 |
|
| Total loans | 774,273 |
| 772,319 |
| 743,055 |
| 727,797 |
| 711,835 |
|
| Allowance for loan losses | 11,335 |
| 11,741 |
| 11,753 |
| 12,420 |
| 13,778 |
|
| Net loans | 762,938 |
| 760,578 |
| 731,302 |
| 715,377 |
| 698,057 |
|
| Investment securities | 205,241 |
| 206,971 |
| 217,194 |
| 184,349 |
| 190,909 |
|
| Other earning assets | 47,261 |
| 23,967 |
| 25,743 |
| 42,777 |
| 14,447 |
|
| Other non-earning assets | 45,289 |
| 48,736 |
| 49,193 |
| 50,517 |
| 53,997 |
|
| Total Assets | $ | 1,060,862 |
| $ | 1,040,652 |
| $ | 1,023,432 |
| $ | 994,469 |
| $ | 959,139 |
|
|
| | | | |
| Liabilities and Shareholders' Equity | | | | |
| Noninterest bearing deposits | $ | 204,414 |
| $ | 196,063 |
| $ | 174,849 |
| $ | 174,527 |
| $ | 167,733 |
|
| Savings deposits | 38,481 |
| 36,206 |
| 34,933 |
| 33,567 |
| 33,101 |
|
| NOW accounts | 104,136 |
| 102,882 |
| 101,828 |
| 95,406 |
| 71,983 |
|
| Money market accounts | 237,873 |
| 233,315 |
| 232,195 |
| 231,185 |
| 217,637 |
|
| Time deposits | 294,076 |
| 297,525 |
| 302,892 |
| 299,703 |
| 310,674 |
|
| Total deposits | 878,980 |
| 865,991 |
| 846,697 |
| 834,388 |
| 801,128 |
|
| Total borrowings | 72,237 |
| 68,315 |
| 72,551 |
| 59,398 |
| 57,953 |
|
| Other liabilities | 2,855 |
| 3,305 |
| 4,065 |
| 4,513 |
| 5,140 |
|
| Total Liabilities | 954,071 |
| 937,611 |
| 923,313 |
| 898,299 |
| 864,221 |
|
| Shareholders’ equity | 106,790 |
| 103,041 |
| 100,119 |
| 96,170 |
| 94,918 |
|
| Total Shareholders’ Equity | 106,790 |
| 103,041 |
| 100,119 |
| 96,170 |
| 94,918 |
|
| Total Liabilities and Shareholders’ Equity | $ | 1,060,862 |
| $ | 1,040,652 |
| $ | 1,023,432 |
| $ | 994,469 |
| $ | 959,139 |
|
|
| | | | | | | | | | | | | | | |
| FINANCIAL SUMMARY | | | | | |
| | Three months ended, |
| | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 |
| Interest income: | (In thousands, except per share data)(Unaudited) |
| Loans, including fees | $ | 8,508 |
| $ | 8,401 |
| $ | 8,218 |
| $ | 8,090 |
| $ | 7,815 |
|
| Securities | 1,101 |
| 1,117 |
| 1,103 |
| 962 |
| 951 |
|
| Federal funds sold and other | 19 |
| 19 |
| 19 |
| 15 |
| 13 |
|
| Total interest income | 9,628 |
| 9,537 |
| 9,340 |
| 9,067 |
| 8,779 |
|
| Interest expense: | | | | | |
| Deposits | 940 |
| 986 |
| 973 |
| 987 |
| 977 |
|
| Federal funds purchased and other borrowed funds | 93 |
| 87 |
| 98 |
| 17 |
| 14 |
|
| Subordinated debt | 297 |
| 297 |
| 297 |
| 603 |
| 603 |
|
| Total interest expense | 1,330 |
| 1,370 |
| 1,368 |
| 1,607 |
| 1,594 |
|
| Net interest income | 8,298 |
| 8,167 |
| 7,972 |
| 7,460 |
| 7,185 |
|
| Provision for loan losses | — |
| (515 | ) | (813 | ) | (749 | ) | — |
|
| Net interest income after provision for loan losses | 8,298 |
| 8,682 |
| 8,785 |
| 8,209 |
| 7,185 |
|
| Noninterest income: | | | | | |
| Service charges on deposit accounts | 204 |
| 190 |
| 188 |
| 194 |
| 183 |
|
| Gain on sale of securities | — |
| 212 |
| 251 |
| — |
| 21 |
|
| Mortgage fee income | 78 |
| 96 |
| 178 |
| 153 |
| 103 |
|
| Other | 273 |
| 261 |
| 152 |
| 174 |
| 138 |
|
| Total noninterest income | 555 |
| 759 |
| 769 |
| 521 |
| 445 |
|
| Noninterest expenses: | | | | | |
| Salaries and employee benefits | 3,256 |
| 3,004 |
| 2,841 |
| 2,810 |
| 2,884 |
|
| Occupancy and equipment expense | 437 |
| 494 |
| 486 |
| 505 |
| 492 |
|
| Data processing | 257 |
| 203 |
| 248 |
| 237 |
| 224 |
|
| Professional fees | 392 |
| 68 |
| 342 |
| 411 |
| 380 |
|
| Advertising and business development | 215 |
| 219 |
| 217 |
| 227 |
| 189 |
|
| Losses on sale and writedowns of foreclosed assets, net | 16 |
| 109 |
| 58 |
| 20 |
| — |
|
| Foreclosed assets, net of rental income | 53 |
| 50 |
| (61 | ) | 70 |
| 72 |
|
| Other expense | 1,310 |
| 898 |
| 1,005 |
| 919 |
| 916 |
|
| Total noninterest expense | 5,936 |
| 5,045 |
| 5,136 |
| 5,199 |
| 5,157 |
|
| Income before income taxes | 2,917 |
| 4,396 |
| 4,418 |
| 3,531 |
| 2,473 |
|
| Income taxes | 889 |
| 1,474 |
| 1,471 |
| 1,189 |
| 867 |
|
| Net income applicable to common shareholders | $ | 2,028 |
| $ | 2,922 |
| $ | 2,947 |
| $ | 2,342 |
| $ | 1,606 |
|
| |
|
| | | |
|
|
| Basic earnings per share | $ | 0.12 |
| $ | 0.17 |
| $ | 0.17 |
| $ | 0.14 |
| $ | 0.10 |
|
| |
|
| | | |
|
|
| Diluted earnings per share | $ | 0.12 |
| $ | 0.17 |
| $ | 0.17 |
| $ | 0.14 |
| $ | 0.09 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| Three months ended, |
| March 31, 2016 | December 31, 2015 | March 31, 2015 |
| | Average
Balances | Income/
Expense | Yields/
Rates | Average
Balances | Income/
Expense | Yields/
Rates | Average
Balances | Income/
Expense | Yields/
Rates |
| Assets | (Dollars in thousands)(Unaudited) |
Loans (1) | $ | 768,983 |
| $ | 8,508 |
| 4.43 | % | $ | 760,332 |
| $ | 8,401 |
| 4.42 | % | $ | 694,514 |
| $ | 7,815 |
| 4.50 | % |
Investment securities (2) | 206,535 |
| 1,101 |
| 2.13 | % | 209,936 |
| 1,117 |
| 2.13 | % | 182,504 |
| 951 |
| 2.08 | % |
| Federal funds sold | — |
| — |
| — | % | — |
| — |
| — | % | — |
| — |
| — | % |
| Interest-bearing deposits with other banks | 13,690 |
| 19 |
| 0.56 | % | 22,378 |
| 19 |
| 0.34 | % | 11,779 |
| 13 |
| 0.44 | % |
| Total earning assets | $ | 989,208 |
| $ | 9,628 |
| 3.89 | % | $ | 992,646 |
| $ | 9,537 |
| 3.84 | % | $ | 888,797 |
| $ | 8,779 |
| 3.95 | % |
| Other assets | 55,124 |
|
|
| 61,572 |
| | | 45,034 |
|
|
|
|
| Total assets | $ | 1,044,332 |
|
|
| $ | 1,054,218 |
| | | $ | 933,831 |
|
|
|
|
|
|
|
|
| | |
|
|
|
| Liabilities |
|
|
| | | |
|
|
|
| NOW accounts | $ | 104,467 |
| $ | 71 |
| 0.27 | % | $ | 102,783 |
| $ | 66 |
| 0.26 | % | $ | 72,246 |
| $ | 23 |
| 0.13 | % |
| Money market accounts | 234,455 |
| 162 |
| 0.28 | % | 237,818 |
| 163 |
| 0.27 | % | 205,616 |
| 137 |
| 0.27 | % |
| Savings accounts | 37,194 |
| 11 |
| 0.12 | % | 36,015 |
| 14 |
| 0.16 | % | 31,785 |
| 13 |
| 0.16 | % |
| Time deposits | 292,491 |
| 696 |
| 0.95 | % | 304,941 |
| 743 |
| 0.97 | % | 303,293 |
| 804 |
| 1.06 | % |
| Total interest bearing deposits | 668,607 |
| 940 |
| 0.56 | % | 681,557 |
| 986 |
| 0.58 | % | 612,940 |
| 977 |
| 0.64 | % |
| Securities sold under agreements to repurchase | 23,902 |
| 9 |
| 0.15 | % | 32,315 |
| 12 |
| 0.15 | % | 28,820 |
| 7 |
| 0.10 | % |
| Secured borrowings | 10,528 |
| 74 |
| 2.81 | % | 12,875 |
| 73 |
| 2.27 | % | — |
| — |
| — |
|
| Mortgage payable | — |
| — |
| — | % | — |
| — |
| — | % | 450 |
| 7 |
| 6.22 | % |
| FHLB borrowings | 12,067 |
| 10 |
| 0.33 | % | 3,261 |
| 2 |
| — | % | 656 |
| — |
| — | % |
| Subordinated debentures | 15,300 |
| 297 |
| 7.76 | % | 15,300 |
| 297 |
| 7.76 | % | 29,136 |
| 603 |
| 8.28 | % |
| Total interest bearing liabilities | $ | 730,404 |
| $ | 1,330 |
| 0.73 | % | $ | 745,308 |
| $ | 1,370 |
| 0.74 | % | $ | 672,002 |
| $ | 1,594 |
| 0.95 | % |
| Noninterest bearing deposits | 205,215 |
|
|
|
|
| 203,108 |
|
|
|
|
| 164,072 |
|
|
|
|
|
| Other liabilities | 3,051 |
|
|
| 3,963 |
| | | 4,194 |
|
|
|
|
| Total liabilities | $ | 938,670 |
|
|
|
|
| $ | 952,379 |
| | | $ | 840,268 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| | |
|
|
|
|
|
|
| Total shareholders' equity | $ | 105,662 |
|
|
|
|
| $ | 101,839 |
| | | $ | 93,563 |
|
|
|
|
|
|
|
|
|
| | | |
|
|
|
|
|
| Total liabilities and shareholders’ equity | $ | 1,044,332 |
|
|
| $ | 1,054,218 |
| | | $ | 933,831 |
|
|
|
|
|
|
|
|
|
|
| | |
|
|
|
|
|
| Net interest income |
| $ | 8,298 |
|
|
| | $ | 8,167 |
| |
| $ | 7,185 |
|
|
|
|
|
|
| | |
|
|
|
|
|
| Interest rate spread |
|
| 3.16 | % | |
| 3.10 | % |
|
| 3.00 | % |
|
|
|
| | |
|
|
|
|
| Net interest margin |
|
|
| 3.36 | % | | | 3.29 | % |
|
|
|
| 3.23 | % |
|
|
| Footnotes: |
(1) Average loans include nonperforming loans. |
(2) No tax-equivalent adjustments were made, as the effect thereof was not material. |
|
| | | | | | | | | | | | | | | |
| COMMON STOCK DATA | | | | |
| | | | | | |
| | 2016 | 2015 |
| | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter |
| | (Unaudited) |
Market value (1): | | | | | |
| End of period | $ | 8.70 |
| $ | 7.24 |
| $ | 6.51 |
| $ | 6.45 |
| $ | 5.47 |
|
| High | 8.84 |
| 7.31 |
| 7.00 |
| 6.55 |
| 5.75 |
|
| Low | 7.00 |
| 6.26 |
| 6.25 |
| 5.47 |
| 5.14 |
|
| Book value (end of period) | 6.22 |
| 6.05 |
| 5.88 |
| 5.66 |
| 5.59 |
|
| Tangible book value (end of period) | 6.22 |
| 6.05 |
| 5.88 |
| 5.66 |
| 5.59 |
|
| Shares outstanding (end of period) | 17,175,864 |
| 17,026,941 |
| 17,017,441 |
| 16,984,221 |
| 16,970,721 |
|
| Average shares outstanding | 17,125,928 |
| 16,939,010 |
| 16,993,822 |
| 16,970,721 |
| 16,768,908 |
|
| Average diluted shares outstanding | 17,451,354 |
| 17,085,752 |
| 17,161,783 |
| 17,088,102 |
| 16,958,466 |
|
|
|
(1) The prices shown are as reported on the NASDAQ Capital Market other than the first and second quarters of 2015, which are reported on the OTC Pink Marketplace. |
|
| | | | | | | | | | | | | | | |
| ASSET QUALITY DATA | | | | | |
| | | | | | |
| | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 |
| (Dollars in thousands)(Unaudited) | | | | | |
| Loans identified as nonperforming | $ | 2,146 |
| $ | 1,411 |
| $ | 3,117 |
| $ | 4,185 |
| $ | 6,211 |
|
| Other nonperforming loans | — |
| 67 |
| 55 |
| 55 |
| — |
|
| Total nonperforming loans | 2,146 |
| 1,478 |
| 3,172 |
| 4,240 |
| 6,211 |
|
| Foreclosed assets | 5,231 |
| 5,487 |
| 4,109 |
| 4,248 |
| 2,550 |
|
| Total nonperforming assets | $ | 7,377 |
| $ | 6,965 |
| $ | 7,281 |
| $ | 8,488 |
| $ | 8,761 |
|
| | | | | | |
| Allowance for loan losses | 11,335 |
| 11,741 |
| 11,753 |
| 12,420 |
| 13,778 |
|
| Nonperforming assets to total assets | 0.70 | % | 0.67 | % | 0.71 | % | 0.85 | % | 0.91 | % |
| Nonperforming loans to total assets | 0.20 | % | 0.14 | % | 0.31 | % | 0.43 | % | 0.65 | % |
| Allowance for loan losses to nonperforming loans | 528.19 | % | 794.38 | % | 370.52 | % | 292.92 | % | 221.83 | % |
|
| | | | | | | | | | | | | | | |
| ALLOWANCE FOR LOAN LOSSES ROLLFORWARD |
| (Unaudited) | Three months ended, |
| | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 |
| Beginning balance | $ | 11,741 |
| $ | 11,753 |
| $ | 12,420 |
| $ | 13,778 |
| $ | 13,905 |
|
| Charge-offs | 506 |
| 133 |
| 654 |
| 736 |
| 335 |
|
| Recoveries | 100 |
| 636 |
| 800 |
| 127 |
| 208 |
|
| Net charge-offs | 406 |
| (503 | ) | (146 | ) | 609 |
| 127 |
|
| Provision for loan losses | — |
| (515 | ) | (813 | ) | (749 | ) | — |
|
| Ending balance | $ | 11,335 |
| $ | 11,741 |
| $ | 11,753 |
| $ | 12,420 |
| $ | 13,778 |
|
| | | | | | |
| Net charge-offs | 406 |
| (503 | ) | (146 | ) | 609 |
| 127 |
|
| Net chargeoff percentage (annualized) | 0.21 | % | (0.26 | )% | (0.08 | )% | 0.34 | % | 0.07 | % |
|
| | | | | | | | | | |
| OTHER DATA | | | | | |
| (Unaudited) | | | | | |
| | Three months ended, |
| | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 |
| Return on average assets | 0.78 | % | 1.11 | % | 1.17 | % | 0.96 | % | 0.69 | % |
| Return on average equity | 7.68 | % | 11.48 | % | 12.01 | % | 9.77 | % | 6.87 | % |
| Net interest margin | 3.36 | % | 3.29 | % | 3.31 | % | 3.23 | % | 3.23 | % |
| Average loans to assets | 73.63 | % | 72.12 | % | 72.37 | % | 73.27 | % | 74.37 | % |
| Average loans to deposits | 88.00 | % | 85.95 | % | 86.63 | % | 87.62 | % | 89.38 | % |
| Average noninterest bearing deposits to total deposits | 23.35 | % | 23.45 | % | 20.79 | % | 22.08 | % | 20.48 | % |
| | | | | | |
| COMPANY CAPITAL RATIOS | | | | | |
| (Unaudited) | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 |
| Tier 1 leverage ratio | 9.72 | % | 9.36 | % | 9.39 | % | 9.24 | % | 9.70 | % |
| Common equity tier 1 capital ratio | 11.94 | % | 11.62 | % | 11.57 | % | 11.20 | % | 11.47 | % |
| Tier 1 capital ratio | 11.94 | % | 11.62 | % | 11.57 | % | 11.20 | % | 11.47 | % |
| Total capital ratio | 14.99 | % | 14.69 | % | 14.71 | % | 14.39 | % | 15.08 | % |
| Tangible common equity to tangible assets | 10.07 | % | 9.90 | % | 9.78 | % | 9.67 | % | 9.90 | % |
|
| | | | | | | | | | | | | | | |
| NON-GAAP MEASURES | | | | |
| | | | | | |
Pre-tax pre-provision core income (1) | | | | |
| (Dollars in thousands)(Unaudited) | | | | | |
| | For the three months ended, |
| | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 |
| Pre-tax net income | $ | 2,917 |
| $ | 4,396 |
| $ | 4,418 |
| $ | 3,531 |
| $ | 2,473 |
|
| Provision for loan losses | — |
| (515 | ) | (813 | ) | (749 | ) | — |
|
| Gain on sale of securities | — |
| (212 | ) | (251 | ) | — |
| (21 | ) |
| Merger related expenses included in professional fees | 100 |
| — |
| — |
| — |
| — |
|
| Losses on sale and writedowns of foreclosed assets, net | 16 |
| 109 |
| 58 |
| 20 |
| — |
|
| Foreclosed assets expense, net of rental income | 53 |
| 50 |
| (61 | ) | 70 |
| 72 |
|
| Pre-tax pre-provision core income | $ | 3,086 |
| $ | 3,828 |
| $ | 3,351 |
| $ | 2,872 |
| $ | 2,524 |
|
|
|
(1) This is a non-GAAP financial measure. The Company’s management believes the presentation of pre-tax pre-provision core income provides investors with a greater understanding of the Company’s operating results, in addition to the results measured in accordance with GAAP. |
