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 Third Quarter 2016 Financial Results
Third Quarter 2016 Highlights
| |
| • | Acquisition and integration of Mazon State Bank |
| |
| • | Diluted earnings per share (“EPS”) of $0.24 for the three months ended September 30, 2016 |
| |
| • | Pre-tax, pre-provision core income of $4.1 million, an increase of 10.70% from the second quarter 2016 |
| |
| • | Net income before taxes of $5.2 million, an increase of 55.10% from the second quarter 2016 |
| |
| • | Asset growth of $121.2 million, or 10.77%, from the second quarter of 2016 |
| |
| • | Loan growth of $84.3 million, or 9.66%, from the second quarter of 2016 |
| |
| • | Deposit growth of $168.4 million, or 18.78%, from the second quarter of 2016 |
| |
| • | Noninterest bearing deposits increase of $43.0 million, or 21.16%, from the second quarter 2016 |
JOLIET, IL, October 24, 2016 -- First Community Financial Partners, Inc. (NASDAQ: FCFP) (“First Community,” “FCFP” or the “Company”), the parent company of First Community Financial Bank (the “Bank”), today reported financial results as of and for the three and nine months ended September 30, 2016.
Net income applicable to shareholders for the quarter ended September 30, 2016 was $4.1 million, or $0.24 per diluted share, compared with $2.9 million, or $0.17 per diluted share, for the quarter ended September 30, 2015. Net income for the third quarter of 2016 was positively impacted by a $1.9 million bargain purchase option gain related to the acquisition of Mazon State Bank, partially offset by $643,000 of one-time merger-related expenses.
“We’re very pleased with our performance in the third quarter, which was highlighted by the successful completion of the Mazon State Bank acquisition and continued momentum in organic balance sheet growth,” said Roy Thygesen, Chief Executive Officer of First Community. “The integration of Mazon has gone very smoothly as we are seeing strong adoption of our expanded offering of products and services by Mazon’s customers, and we are realizing the synergies we projected for this acquisition.”
“We had another strong quarter of business development, resulting in organic loan growth of 24% and organic growth in demand deposits of 43% on an annualized basis. We are seeing particular strength in commercial loan production due to the expansion of our commercial banking team and our success in capitalizing on market disruption in the Chicagoland area. We continue to have a strong loan and deposit pipeline that should continue to drive quality balance sheet growth and steady improvement in our core earnings power,” said Mr. Thygesen.
Mazon State Bank Acquisition
The Company closed its previously announced acquisition of Mazon State Bank on July 1, 2016. Mazon State Bank had $81.7 million in assets, $32.6 million in loans, and $73.1 million in deposits (including $21.5 million of noninterest bearing deposits) as of the closing of the transaction on July 1, 2016. Mazon State Bank also had $47.1 million in residential real estate loans sold and serviced.
Third Quarter 2016 Financial Results
Loans
At September 30, 2016, total loans were $956.2 million, an increase of $84.0 million, or 9.63%, since the end of the second quarter of 2016 and $213.2 million, or 28.69%, year-over-year. Excluding the $32.6 million in loans added through the Mazon State Bank acquisition, total organic loan growth was $51.7 million in the third quarter of 2016, or 23.71% on an annualized basis. The organic loan growth was the result of a strong loan pipeline along with results produced by the addition of six commercial lenders and one new leasing officer hired during the first quarter of 2016.
Commercial loans grew $35.9 million, or 15.00%, since the end of the second quarter and $94.2 million, or 52.15%, year-over-year. Commercial real estate loans increased $9.5 million, or 2.31%, since the end of the second quarter, and $51.1 million, or 13.84%, year-over-year. Residential real estate loans grew $23.1 million, or 16.03%, since the end of the second quarter and $40.7 million, year-over-year. Construction loans were up $9.4 million, or 30.55%, since the second quarter and $20.8 million, or 106.95%, year-over-year.
Deposits and Other Borrowings
At September 30, 2016, total deposits were $1.07 billion, an increase of $168.4 million, or 18.78%, since the second quarter. Excluding the $73.1 million in deposits added through the Mazon State Bank acquisition, total organic deposit growth was $95.3 million in the third quarter of 2016, or 42.6% on an annualized basis.
Noninterest bearing demand deposits increased $43.0 million, or 21.16%, since the end of the second quarter. Interest bearing transactional accounts (NOW, savings and money market accounts) increased $98.2 million ($34.4 million of which was from the acquisition of Mazon State Bank), or 25.68%, during the third quarter 2016. Time deposits increased $27.3 million ($10.4 million of which was from the acquisition of Mazon State Bank), or 8.75%, to $338.7 million at September 30, 2016, from $311.4 million at June 30, 2016. The ratio of time deposits to total deposits was 31.79% at September 30, 2016, down from 34.72% at June 30, 2016. Other borrowings decreased $52.8 million, or 53.14%, since the end of the second quarter as a result of less reliance on FHLB borrowings after the acquisition of Mazon State Bank.
Net Interest Income and Margin
Third quarter 2016 net interest income was up $1.1 million, or 12.73%, from the second quarter of 2016. The increase was primarily attributable to an increase in average loan balances and higher net interest margin.
The Company’s net interest margin was 3.44% for the third quarter of 2016, compared to 3.39% in the second quarter of 2016. The increase was primarily attributable to a favorable shift in the mix of earning assets and an increase in noninterest bearing balances as a source of funding.
Noninterest Income and Expense
Third quarter 2016 noninterest income increased $1.5 million, or 123.45%, from the second quarter of 2016 and increased $2.0 million, or 260.60%, from the third quarter of 2015. The increase was primarily attributable to a $1.9 million bargain purchase option gain related to the acquisition of Mazon State Bank that was recognized within non-interest income.
Service charges on deposits increased $82,000, or 39.61%, from the second quarter of 2016, which was primarily the result of the Mazon State Bank acquisition. Securities gains of $14,000 were the result of $25.6 million in securities sold during the third quarter to fund loan growth. Mortgage income was also up $46,000, or 39.66%, for the third quarter of 2016, as compared to the second quarter, as a result of higher mortgage sale volumes.
Third quarter 2016 noninterest expense increased $927,000, or 15.12%, from the second quarter of 2016. The increase from the second quarter was primarily related to the acquisition of Mazon State Bank, which included approximately $643,000 of one-time merger-related expenses. Staffing expense related to the acquired locations
was $349,000 in the third quarter. In addition, other noninterest expense included $164,000 in stock option expense related to the merger as well as increases in other miscellaneous expenses.
Asset Quality
Total nonperforming assets increased $4.4 million, or 90.38%, to $9.2 million at September 30, 2016 from June 30, 2016. The ratio of nonperforming assets to total assets was 0.74% at September 30, 2016 compared to 0.43% at June 30, 2016. The increase in total nonperforming assets was the result of the addition of one loan relationship to nonaccrual totaling $4.5 million, partially offset by the sales of other real estate owned of $1.5 million during the quarter ended September 30, 2016.
The Company had net charge-offs on loans of $143,000 in the third quarter of 2016, compared to net recoveries of $209,000 in the second quarter of 2016.
The ratios of the Company’s allowance for loan losses to nonperforming loans and allowance to total loans were 144.93% and 1.28% at September 30, 2016, respectively.
The Company recorded a provision for loan losses in the third quarter of 2016 of $383,000 compared to a reversal of $813,000 for the same period in 2015. The current year provision was the result of the loan growth experienced during the third quarter of 2016.
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, has locations in Joliet, Plainfield, Homer Glen, Channahon, Naperville, Burr Ridge, Mazon, Braidwood, and Diamond, 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
---------------------------------------------------------------------
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 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; and changes in local, national and international economic conditions. 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 14, 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 | | | | |
| | | | | |
| September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 |
| Period-End Balance Sheet |
| | | | |
| (In thousands)(Unaudited) | | | | |
| Assets |
| | | | |
| Cash and due from banks | $ | 21,622 |
| $ | 13,777 |
| $ | 9,132 |
| $ | 10,699 |
| $ | 10,110 |
|
| Interest-bearing deposits in banks | 33,349 |
| 19,335 |
| 30,558 |
| 7,406 |
| 21,324 |
|
| Securities available for sale | 188,062 |
| 179,517 |
| 203,874 |
| 205,604 |
| 215,827 |
|
| Mortgage loans held for sale | 1,331 |
| 711 |
| 133 |
| 400 |
| — |
|
| Leases, net | 739 |
| 448 |
| — |
| — |
| — |
|
| Commercial real estate | 419,958 |
| 410,461 |
| 378,304 |
| 381,098 |
| 368,896 |
|
| Commercial | 274,889 |
| 239,038 |
| 181,142 |
| 179,623 |
| 180,674 |
|
| Residential 1-4 family | 166,971 |
| 143,908 |
| 139,208 |
| 135,864 |
| 126,316 |
|
| Multifamily | 31,880 |
| 30,809 |
| 31,511 |
| 34,272 |
| 30,771 |
|
| Construction and land development | 40,253 |
| 30,834 |
| 27,798 |
| 22,082 |
| 19,451 |
|
| Farmland and agricultural production | 12,985 |
| 9,235 |
| 9,060 |
| 9,989 |
| 8,984 |
|
| Consumer and other | 9,280 |
| 7,924 |
| 7,250 |
| 9,391 |
| 7,963 |
|
| Total loans | 956,216 |
| 872,209 |
| 774,273 |
| 772,319 |
| 743,055 |
|
| Allowance for loan losses | 12,284 |
| 12,044 |
| 11,335 |
| 11,741 |
| 11,753 |
|
| Net loans | 943,932 |
| 860,165 |
| 762,938 |
| 760,578 |
| 731,302 |
|
| Other assets | 57,563 |
| 51,409 |
| 54,227 |
| 55,965 |
| 44,869 |
|
| Total Assets | $ | 1,246,598 |
| $ | 1,125,362 |
| $ | 1,060,862 |
| $ | 1,040,652 |
| $ | 1,023,432 |
|
|
| |
|
|
|
| Liabilities and Shareholders' Equity | | |
| |
| Noninterest bearing deposits | $ | 246,262 |
| $ | 203,258 |
| $ | 204,414 |
| $ | 196,063 |
| $ | 174,849 |
|
| Savings deposits | 61,399 |
| 40,603 |
| 38,481 |
| 36,206 |
| 34,933 |
|
| NOW accounts | 151,243 |
| 103,324 |
| 104,136 |
| 102,882 |
| 101,828 |
|
| Money market accounts | 267,667 |
| 238,229 |
| 237,873 |
| 233,315 |
| 232,195 |
|
| Time deposits | 338,680 |
| 311,416 |
| 294,076 |
| 297,525 |
| 302,892 |
|
| Total deposits | 1,065,251 |
| 896,830 |
| 878,980 |
| 865,991 |
| 846,697 |
|
| Total borrowings | 61,879 |
| 114,701 |
| 72,237 |
| 68,315 |
| 72,551 |
|
| Other liabilities | 4,304 |
| 2,722 |
| 2,855 |
| 3,305 |
| 4,065 |
|
| Total Liabilities | 1,131,434 |
| 1,014,253 |
| 954,072 |
| 937,611 |
| 923,313 |
|
| Shareholders’ equity | 115,164 |
| 111,109 |
| 106,790 |
| 103,041 |
| 100,119 |
|
| Total Shareholders’ Equity | 115,164 |
| 111,109 |
| 106,790 |
| 103,041 |
| 100,119 |
|
| Total Liabilities and Shareholders’ Equity | $ | 1,246,598 |
| $ | 1,125,362 |
| $ | 1,060,862 |
| $ | 1,040,652 |
| $ | 1,023,432 |
|
|
| | | | | | | | | | | | | | | |
| FINANCIAL SUMMARY | | | | | |
| | Three months ended, |
| | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 |
| Interest income: | (In thousands, except per share data)(Unaudited) |
| Loans, including fees | $ | 10,229 |
| $ | 9,024 |
| $ | 8,508 |
| $ | 8,401 |
| $ | 8,218 |
|
| Securities | 1,041 |
| 1,042 |
| 1,101 |
| 1,117 |
| 1,103 |
|
| Federal funds sold and other | 43 |
| 21 |
| 19 |
| 19 |
| 19 |
|
| Total interest income | 11,313 |
| 10,087 |
| 9,628 |
| 9,537 |
| 9,340 |
|
| Interest expense: | | | | | |
| Deposits | 1,081 |
| 957 |
| 940 |
| 986 |
| 973 |
|
| Federal funds purchased and other borrowed funds | 112 |
| 119 |
| 93 |
| 87 |
| 98 |
|
| Subordinated debentures | 297 |
| 297 |
| 297 |
| 297 |
| 297 |
|
| Total interest expense | 1,490 |
| 1,373 |
| 1,330 |
| 1,370 |
| 1,368 |
|
| Net interest income | 9,823 |
| 8,714 |
| 8,298 |
| 8,167 |
| 7,972 |
|
| Provision for loan losses | 383 |
| 500 |
| — |
| (515 | ) | (813 | ) |
| Net interest income after provision for loan losses | 9,440 |
| 8,214 |
| 8,298 |
| 8,682 |
| 8,785 |
|
| Noninterest income: | | | | | |
| Service charges on deposit accounts | 289 |
| 207 |
| 204 |
| 190 |
| 188 |
|
| Gain on sale of loans | 7 |
| | — |
| — |
| — |
|
| Gain on sale of securities | 14 |
| 603 |
| — |
| 212 |
| 251 |
|
| Mortgage fee income | 162 |
| 116 |
| 78 |
| 96 |
| 178 |
|
| Bargain purchase gain | 1,920 |
| — |
| — |
| — |
| — |
|
| Other | 381 |
| 315 |
| 273 |
| 261 |
| 152 |
|
| Total noninterest income | 2,773 |
| 1,241 |
| 555 |
| 759 |
| 769 |
|
| Noninterest expenses: | | | | | |
| Salaries and employee benefits | 3,812 |
| 3,311 |
| 3,256 |
| 3,004 |
| 2,841 |
|
| Occupancy and equipment expense | 568 |
| 429 |
| 437 |
| 494 |
| 486 |
|
| Data processing | 700 |
| 690 |
| 257 |
| 203 |
| 248 |
|
| Professional fees | 369 |
| 375 |
| 392 |
| 68 |
| 342 |
|
| Advertising and business development | 328 |
| 262 |
| 215 |
| 219 |
| 217 |
|
| Losses on sale and writedowns of foreclosed assets, net | 1 |
| 31 |
| 16 |
| 109 |
| 58 |
|
| Foreclosed assets expenses, net of rental income | (99 | ) | 60 |
| 53 |
| 50 |
| (61 | ) |
| Other expense | 1,380 |
| 974 |
| 1,310 |
| 898 |
| 1,005 |
|
| Total noninterest expense | 7,059 |
| 6,132 |
| 5,936 |
| 5,045 |
| 5,136 |
|
| Income before income taxes | 5,154 |
| 3,323 |
| 2,917 |
| 4,396 |
| 4,418 |
|
| Income taxes | 1,019 |
| 1,058 |
| 889 |
| 1,474 |
| 1,471 |
|
| Net income applicable to common shareholders | $ | 4,135 |
| $ | 2,265 |
| $ | 2,028 |
| $ | 2,922 |
| $ | 2,947 |
|
| |
|
| | | | |
| Basic earnings per share | $ | 0.24 |
| $ | 0.13 |
| $ | 0.12 |
| $ | 0.17 |
| $ | 0.17 |
|
| |
|
| | | | |
| Diluted earnings per share | $ | 0.24 |
| $ | 0.13 |
| $ | 0.12 |
| $ | 0.17 |
| $ | 0.17 |
|
|
| | | | | | |
| | Nine months ended September 30, |
| | 2016 | 2015 |
| Interest income: | (dollars in thousands, except per share data)(unaudited) |
| Loans, including fees | $ | 27,761 |
| $ | 24,124 |
|
| Securities | 3,184 |
| 3,017 |
|
| Federal funds sold and other | 83 |
| 47 |
|
| Total interest income | 31,028 |
| 27,188 |
|
| Interest expense: | | |
| Deposits | 2,978 |
| 2,937 |
|
| Federal funds purchased and other borrowed funds | 324 |
| 129 |
|
| Subordinated debentures | 891 |
| 1,503 |
|
| Total interest expense | 4,193 |
| 4,569 |
|
| Net interest income | 26,835 |
| 22,619 |
|
| Provision for loan losses | 883 |
| (1,562 | ) |
| Net interest income after provision for loan losses | 25,952 |
| 24,181 |
|
| Noninterest income: | | |
| Service charges on deposit accounts | 700 |
| 565 |
|
| Gain on sale of securities | 617 |
| 272 |
|
| Mortgage fee income | 356 |
| 435 |
|
| Bargain purchase gain | 1,920 |
| — |
|
| Other | 969 |
| 465 |
|
| | 4,569 |
| 1,737 |
|
| Noninterest expenses: | | |
| Salaries and employee benefits | 10,379 |
| 8,535 |
|
| Occupancy and equipment expense | 1,434 |
| 1,483 |
|
| Data processing | 1,647 |
| 710 |
|
| Professional fees | 1,136 |
| 1,134 |
|
| Advertising and business development | 805 |
| 633 |
|
| Losses on sale and writedowns of foreclosed assets, net | 14 |
| 78 |
|
| Foreclosed assets expenses, net of rental income | 50 |
| 80 |
|
| Other expense | 3,663 |
| 2,840 |
|
| | 19,128 |
| 15,493 |
|
| Income before income taxes | 11,393 |
| 10,425 |
|
| Income taxes | 2,966 |
| 3,527 |
|
| Net income | $ | 8,427 |
| $ | 6,898 |
|
| | | |
| Basic earnings per share | $ | 0.49 |
| $ | 0.41 |
|
| | | |
| Diluted earnings per share | $ | 0.48 |
| $ | 0.40 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| Three months ended, |
| September 30, 2016 | June 30, 2016 | September 30, 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) | $ | 919,777 |
| $ | 10,229 |
| 4.45 | % | $ | 826,416 |
| $ | 9,024 |
| 4.37 | % | $ | 731,871 |
| $ | 8,218 |
| 4.49 | % |
Investment securities (2) | 199,139 |
| 1,041 |
| 2.09 | % | 190,924 |
| 1,042 |
| 2.18 | % | 207,843 |
| 1,103 |
| 2.12 | % |
| Interest-bearing deposits with other banks | 24,580 |
| 43 |
| 0.70 | % | 11,465 |
| 21 |
| 0.73 | % | 23,790 |
| 19 |
| 0.32 | % |
| Total earning assets | $ | 1,143,496 |
| $ | 11,313 |
| 3.96 | % | $ | 1,028,805 |
| $ | 10,087 |
| 3.92 | % | $ | 963,504 |
| $ | 9,340 |
| 3.88 | % |
| Other assets | 74,740 |
|
|
| 50,707 |
| | | 47,787 |
|
|
|
|
| Total assets | $ | 1,218,236 |
|
|
| $ | 1,079,512 |
| | | $ | 1,011,291 |
|
|
|
|
|
|
|
|
| | |
|
|
|
| Liabilities |
|
|
| | | |
|
|
|
| NOW accounts | $ | 122,727 |
| $ | 90 |
| 0.29 | % | $ | 109,354 |
| $ | 81 |
| 0.30 | % | $ | 98,915 |
| $ | 64 |
| 0.26 | % |
| Money market accounts | 260,070 |
| 190 |
| 0.29 | % | 232,004 |
| 162 |
| 0.28 | % | 234,898 |
| 166 |
| 0.28 | % |
| Savings accounts | 62,179 |
| 15 |
| 0.10 | % | 39,525 |
| 12 |
| 0.12 | % | 34,447 |
| 15 |
| 0.17 | % |
| Time deposits | 326,860 |
| 786 |
| 0.96 | % | 292,811 |
| 702 |
| 0.96 | % | 300,476 |
| 728 |
| 0.97 | % |
| Total interest bearing deposits | 771,836 |
| 1,081 |
| 0.56 | % | 673,694 |
| 957 |
| 0.57 | % | 668,736 |
| 973 |
| 0.58 | % |
| Securities sold under agreements to repurchase | 23,339 |
| 10 |
| 0.17 | % | 21,650 |
| 9 |
| 0.17 | % | 33,112 |
| 11 |
| 0.13 | % |
| Secured borrowings | 7,752 |
| 58 |
| 2.99 | % | 9,261 |
| 66 |
| 2.85 | % | 13,406 |
| 86 |
| 2.57 | % |
| Mortgage payable | — |
| — |
| — | % | — |
| — |
| — | % | — |
| — |
| — | % |
| FHLB borrowings | 42,391 |
| 44 |
| 0.42 | % | 44,615 |
| 44 |
| 0.33 | % | 1,413 |
| 1 |
| 0.28 | % |
| Subordinated debentures | 15,300 |
| 297 |
| 7.76 | % | 15,300 |
| 297 |
| 7.76 | % | 15,300 |
| 297 |
| 7.76 | % |
| Total interest bearing liabilities | $ | 860,618 |
| $ | 1,490 |
| 0.69 | % | $ | 764,520 |
| $ | 1,373 |
| 0.72 | % | $ | 731,967 |
| $ | 1,368 |
| 0.75 | % |
| Noninterest bearing deposits | 239,802 |
|
|
|
|
| 204,016 |
|
|
|
|
| 176,040 |
|
|
|
|
|
| Other liabilities | 3,726 |
|
|
| 2,544 |
| | | 5,117 |
|
|
|
|
| Total liabilities | $ | 1,104,146 |
|
|
|
|
| $ | 971,080 |
| | | $ | 913,124 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| | |
|
|
|
|
|
|
| Total shareholders’ equity | $ | 114,090 |
|
|
|
|
| $ | 108,432 |
| | | $ | 98,167 |
|
|
|
|
|
|
|
|
|
| | | |
|
|
|
|
|
| Total liabilities and shareholders’ equity | $ | 1,218,236 |
|
|
| $ | 1,079,512 |
| | | $ | 1,011,291 |
|
|
|
|
|
|
|
|
|
|
| | |
|
|
|
|
|
| Net interest income |
| $ | 9,823 |
|
|
| | $ | 8,714 |
| |
| $ | 7,972 |
|
|
|
|
|
|
| | |
|
|
|
|
|
| Interest rate spread |
|
| 3.27 | % | |
| 3.20 | % |
|
| 3.13 | % |
|
|
|
| | |
|
|
|
|
| Net interest margin |
|
|
| 3.44 | % | | | 3.39 | % |
|
|
|
| 3.31 | % |
|
|
| Footnotes: |
(1) Average loans include nonperforming loans. |
(2) No tax-equivalent adjustments were made, as the effect thereof was not material. |
|
| | | | | | | | | | | | | | | | |
| | Nine months ended September 30, |
| | September 30, 2016 | September 30, 2015 |
| | Average
Balances | Income/
Expense | Yields/
Rates | Average
Balances | Income/
Expense | Yields/
Rates |
| Assets | (Dollars in thousands)(Unaudited) |
Loans (1) | $ | 830,640 |
| $ | 27,761 |
| 4.46 | % | $ | 717,473 |
| $ | 24,124 |
| 4.48 | % |
Investment securities (2) | 198,867 |
| 3,184 |
| 2.13 | % | 193,212 |
| 3,017 |
| 2.08 | % |
| Federal funds sold | — |
| — |
| — | % | — |
| — |
| — | % |
| Interest-bearing deposits with other banks | 16,464 |
| 83 |
| 0.67 | % | 16,892 |
| 47 |
| 0.37 | % |
| Total earning assets | $ | 1,045,971 |
| $ | 31,028 |
| 3.96 | % | $ | 927,577 |
| $ | 27,188 |
| 3.91 | % |
| Other assets | 68,064 |
| | | 45,933 |
| | |
| Total assets | $ | 1,114,035 |
| | | $ | 973,510 |
| | |
| | | | | | | |
| Liabilities | | | | | | |
| NOW accounts | $ | 112,221 |
| $ | 242 |
| 0.29 | % | $ | 87,578 |
| $ | 139 |
| 0.21 | % |
| Money market accounts | 242,098 |
| 514 |
| 0.28 | % | 220,448 |
| 457 |
| 0.28 | % |
| Savings accounts | 46,357 |
| 38 |
| 0.11 | % | 33,074 |
| 42 |
| 0.17 | % |
| Time deposits | 304,138 |
| 2,184 |
| 0.96 | % | 303,240 |
| 2,299 |
| 1.01 | % |
| Total interest bearing deposits | 704,814 |
| 2,978 |
| 0.56 | % | 644,340 |
| 2,937 |
| 0.61 | % |
| Securities sold under agreements to repurchase | 22,965 |
| 27 |
| 0.16 | % | 30,355 |
| 25 |
| 0.11 | % |
| Secured borrowings | 9,175 |
| 200 |
| 2.91 | % | 4,569 |
| 88 |
| 2.57 | % |
| Mortgage payable | — |
| — |
| — | % | 241 |
| 14 |
| 7.75 | % |
| FHLB borrowings | 33,059 |
| 97 |
| 0.39 | % | 1,154 |
| 2 |
| 0.23 | % |
| Subordinated debentures | 15,300 |
| 891 |
| 7.76 | % | 24,424 |
| 1,503 |
| 8.21 | % |
| Total interest bearing liabilities | $ | 785,313 |
| $ | 4,193 |
| 0.71 | % | $ | 705,083 |
| $ | 4,569 |
| 0.86 | % |
| Noninterest bearing deposits | 216,430 |
| | | 168,316 |
| | |
| Other liabilities | 3,113 |
| | | 4,221 |
| | |
| Total liabilities | $ | 1,004,856 |
| | | $ | 877,620 |
| | |
| | | | | | | |
| Total shareholders’ equity | $ | 109,179 |
| | | $ | 95,890 |
| | |
| | | | | | | |
| Total liabilities and shareholders’ equity | $ | 1,114,035 |
| | | $ | 973,510 |
| | |
| | | | | | | |
| Net interest income | | $ | 26,835 |
| | | $ | 22,619 |
| |
| | | | | | | |
| Interest rate spread | | | 3.25 | % | | | 3.05 | % |
| | | | | | | |
| Net interest margin | | | 3.42 | % | | | 3.25 | % |
|
|
| 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 |
| | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Third Quarter |
| | (Unaudited) |
Market value (1): | | | | | |
| End of period | $ | 9.52 |
| $ | 8.80 |
| $ | 8.70 |
| $ | 7.24 |
| $ | 6.51 |
|
| High | 9.55 |
| 9.10 |
| 8.84 |
| 7.31 |
| 7.00 |
|
| Low | 8.35 |
| 8.18 |
| 7.00 |
| 6.26 |
| 6.25 |
|
| Book value (end of period) | 6.68 |
| 6.47 |
| 6.22 |
| 6.05 |
| 5.88 |
|
| Tangible book value (end of period) | 6.62 |
| 6.47 |
| 6.22 |
| 6.05 |
| 5.88 |
|
| Shares outstanding (end of period) | 17,237,845 |
| 17,183,780 |
| 17,175,864 |
| 17,026,941 |
| 17,017,441 |
|
| Average shares outstanding | 17,189,113 |
| 17,182,197 |
| 17,125,928 |
| 16,939,010 |
| 16,993,822 |
|
| Average diluted shares outstanding | 17,565,667 |
| 17,550,547 |
| 17.451354 |
| 17,085,752 |
| 17,161,783 |
|
|
|
| (1) The prices shown are as reported on the NASDAQ Capital Market |
|
| | | | | | | | | | | | | | | |
| ASSET QUALITY DATA | | | | | |
| | | | | | |
| | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 |
| (Dollars in thousands)(Unaudited) | | | | | |
| Loans identified as nonperforming | $ | 8,385 |
| $ | 2,622 |
| $ | 2,146 |
| $ | 1,411 |
| $ | 3,117 |
|
| Other nonperforming loans | 91 |
| — |
| — |
| 67 |
| 55 |
|
| Total nonperforming loans | 8,476 |
| 2,622 |
| 2,146 |
| 1,478 |
| 3,172 |
|
| Foreclosed assets | 725 |
| 2,211 |
| 5,231 |
| 5,487 |
| 4,109 |
|
| Total nonperforming assets | $ | 9,201 |
| $ | 4,833 |
| $ | 7,377 |
| $ | 6,965 |
| $ | 7,281 |
|
| | | | | | |
| Allowance for loan losses | $ | 12,284 |
| $ | 12,044 |
| $ | 11,335 |
| $ | 11,741 |
| $ | 11,753 |
|
| Nonperforming assets to total assets | 0.74 | % | 0.43 | % | 0.70 | % | 0.67 | % | 0.71 | % |
| Nonperforming loans to total assets | 0.68 | % | 0.23 | % | 0.20 | % | 0.14 | % | 0.31 | % |
| Allowance for loan losses to nonperforming loans | 144.93 | % | 459.34 | % | 528.19 | % | 794.38 | % | 370.52 | % |
|
| | | | | | | | | | | | | | | |
| ALLOWANCE FOR LOAN LOSSES ROLLFORWARD | | |
| (Dollars in thousands)(Unaudited) | Three months ended, |
| | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 |
| Beginning balance | $ | 12,044 |
| $ | 11,335 |
| $ | 11,741 |
| $ | 11,753 |
| $ | 12,420 |
|
| Charge-offs | 340 |
| 193 |
| 506 |
| 133 |
| 654 |
|
| Recoveries | 197 |
| 402 |
| 100 |
| 636 |
| 800 |
|
| Net charge-offs | 143 |
| (209 | ) | 406 |
| (503 | ) | (146 | ) |
| Provision for loan losses | 383 |
| 500 |
| — |
| (515 | ) | (813 | ) |
| Ending balance | $ | 12,284 |
| $ | 12,044 |
| $ | 11,335 |
| $ | 11,741 |
| $ | 11,753 |
|
| | | | | | |
| Net charge-offs | $ | 143 |
| $ | (209 | ) | $ | 406 |
| $ | (503 | ) | $ | (146 | ) |
| Net chargeoff percentage annualized | 0.06 | % | (0.11 | )% | 0.21 | % | (0.26 | )% | (0.08 | )% |
|
| | | | | | | | | | |
| OTHER DATA | | | | | |
| (Unaudited) | | | | | |
| | Three months ended, |
| | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 |
| Return on average assets | 1.36 | % | 0.84 | % | 0.78 | % | 1.11 | % | 1.17 | % |
| Return on average equity | 14.50 | % | 8.36 | % | 7.68 | % | 11.48 | % | 12.01 | % |
| Net interest margin | 3.44 | % | 3.39 | % | 3.36 | % | 3.29 | % | 3.31 | % |
| Average loans to assets | 75.50 | % | 76.55 | % | 73.63 | % | 72.12 | % | 72.37 | % |
| Average loans to deposits | 90.92 | % | 94.16 | % | 88.00 | % | 85.95 | % | 86.63 | % |
| Average noninterest bearing deposits to total deposits | 22.51 | % | 22.75 | % | 23.35 | % | 23.45 | % | 20.79 | % |
| | | | | | |
| COMPANY CAPITAL RATIOS | | | | | |
| (Unaudited) | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 |
| Tier 1 leverage ratio | 9.15 | % | 9.77 | % | 9.72 | % | 9.36 | % | 9.39 | % |
| Common equity tier 1 capital ratio | 10.84 | % | 11.26 | % | 11.94 | % | 11.62 | % | 11.57 | % |
| Tier 1 capital ratio | 10.84 | % | 11.26 | % | 11.94 | % | 11.62 | % | 11.57 | % |
| Total capital ratio | 13.52 | % | 14.14 | % | 14.99 | % | 14.69 | % | 14.71 | % |
| Tangible common equity to tangible assets | 9.24 | % | 10.47 | % | 10.26 | % | 10.07 | % | 10.07 | % |
|
| | | | | | | | | | | | | | | |
| NON-GAAP MEASURES | | | | |
| | | | | | |
Pre-tax pre-provision core income (1) | | | | |
| (In thousands)(Unaudited) | | | | | |
| | For the three months ended, |
| | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 |
| Pre-tax net income | $ | 5,154 |
| $ | 3,323 |
| $ | 2,917 |
| $ | 4,396 |
| $ | 4,418 |
|
| Provision for loan losses | 383 |
| 500 |
| — |
| (515 | ) | (813 | ) |
| Gain on sale of securities | (14 | ) | (603 | ) | — |
| (212 | ) | (251 | ) |
| Merger related expenses included in professional fees | 24 |
| 26 |
| 100 |
| — |
| — |
|
| Merger related expenses included in data processing fees | 363 |
| 410 |
| — |
| — |
| — |
|
| Severances paid in relation to the merger | 92 |
| — |
| — |
| — |
| — |
|
| Stock options included in other expense | 164 |
| | | | |
| Bargain purchase option | (1,920 | ) | — |
| — |
| — |
| — |
|
| Losses (gain) on sale and writedowns of foreclosed assets, net | 1 |
| 31 |
| 16 |
| 109 |
| 58 |
|
| Foreclosed assets expense, net of rental income | (99 | ) | 60 |
| 53 |
| 50 |
| (61 | ) |
| Pre-tax pre-provision core income | $ | 4,148 |
| $ | 3,747 |
| $ | 3,086 |
| $ | 3,828 |
| $ | 3,351 |
|
|
|
(1) This is a non-GAAP financial measure. In compliance with applicable rules of the Securities and Exchange Commission, this non-GAAP measure is reconciled to pre-tax net income, which is the most directly comparable 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. |
