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 2017 Financial Results
First Quarter 2017 Highlights
| |
| • | Signed definitive agreement to merge with First Busey Corporation (“First Busey”) |
| |
| • | Diluted earnings per share (“EPS”) of $0.19 for the three months ended March 31, 2017, an increase of 26.67% from the fourth quarter 2016 |
| |
| • | Asset growth of $68.6 million, or 5.41%, from the end of the fourth quarter of 2016 |
| |
| • | Loan growth of $72.1 million, or 7.30%, from the end of the fourth quarter of 2016 |
| |
| • | Deposit growth of $25.1 million, or 2.32%, from the end of the fourth quarter of 2016 |
| |
| • | Noninterest bearing deposits increase of $13.7 million, or 5.52%, from the the end of the fourth quarter 2016 |
JOLIET, IL, April 25, 2017 -- 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, 2017.
Net income applicable to shareholders for the quarter ended March 31, 2017 was $3.4 million, or $0.19 per diluted share, compared with $2.7 million, or $0.15 per diluted share, for the quarter ended December 31, 2016 and $2.0 million, or $0.12 per diluted share, for the quarter ended March 31, 2016. First quarter results were positively impacted by an increase in net interest income and reduced income tax expense from the benefit related to stock incentive compensation, offset by increased professional fees in connection with the announced pending merger with First Busey.
“We are seeing positive trends across most of our key metrics including strong balance sheet growth, an expanding net interest margin and improving credit quality,” said Roy Thygesen, Chief Executive Officer of First Community. “We continue to successfully attract new commercial customers to the Bank, which helped drive organic loan growth of 29% in the first quarter. We are executing well and looking forward to completing our merger with First Busey Corporation, which we believe will enhance our ability to serve our customers’ needs through an expanded offering of financial products and services.”
First Quarter 2017 Financial Results
Loans
At March 31, 2017, total loans were $1.1 billion, an increase of $72.1 million, or 7.30%, since December 31, 2016 and $286.2 million, or 36.96%, year-over-year.
Commercial loans grew $14.5 million, or 5.15%, since year end 2016 and $115.2 million, or 63.58%, year-over-year. Commercial real estate loans increased $48.1 million, or 11.30%, since year end 2016, and $95.7 million, or 25.31%, year-over-year. Residential real estate loans grew $5.4 million, or 3.10%, since year end 2016 and $42.2 million, or 30.33% year-over-year. Construction loans were up $3.7 million, or 7.92%, since the year end 2016 and $23.3 million, or 83.77%, year-over-year.
Deposits and Other Borrowings
At March 31, 2017, total deposits were $1.11 billion, an increase of $25.1 million, or 2.32%, since December 31, 2016 and $229.3 million, or 26.08%, year-over-year.
Noninterest bearing demand deposits increased $13.7 million, or 5.52%, since December 31, 2016 and $57.1 million, or 27.94%, year-over-year. Interest bearing transactional accounts (NOW, savings and money market accounts) increased $20.6 million, or 4.05%, during the first quarter of 2017 and $148.5 million, or 39.03%, year-over-year. Time deposits decreased $9.2 million, or 2.80%, during the first quarter, but increased $23.6 million, or 8.04%, year-over-year. The ratio of time deposits to total deposits was 28.67% at March 31, 2017, down from 30.18% at December 31, 2016 and 30.36% at March 31, 2016. Other borrowings increased $38.1 million, or 74.57%, since the end of the fourth quarter of 2016, and $32.4 million, or 56.84%, year-over-year, as a result of higher reliance on FHLB borrowings in order to fund loan growth.
Net Interest Income and Margin
First quarter 2017 net interest income was up $387,000, or 3.78%, from the fourth 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 3.50% for the first quarter of 2017, compared to 3.40% in the fourth quarter of 2016. The increase was primarily attributable to two prime rate increases since mid December 2016 in response to the Federal Reserve increasing the targeted Federal Funds rate by 25 basis points in December 2016 and again in March 2017.
Noninterest Income and Expense
First quarter 2017 noninterest income increased $59,000, or 6.57%, from the fourth quarter of 2016. The increase was primarily related to increases in service charges on deposits and other non-interest income.
Service charges on deposits increased $24,000, or 8.42%, from the fourth quarter of 2016, which was primarily the result of higher account analysis fees. Mortgage income was down $98,000, or 45.79%, for the first quarter of 2017, as compared to the fourth quarter of 2016, as a result of lower mortgage sale volumes. The increase in other non-interest income of $142,000 was primarily the result of a $144,000 fee earned on a swap transaction that closed in the first quarter of 2017 offset by lower income related to letter of credit fees, lease referral income and other miscellaneous income.
First quarter 2017 noninterest expense increased $521,000, or 7.53%, from the fourth quarter of 2016. The increase from the fourth quarter was primarily related to an increase in professional fees related to our pending merger with First Busey and an increase in data processing fees as a result of accrual reversals booked in the fourth quarter of 2016.
Income Taxes
Income taxes for the first quarter of 2017 were $365,000, or 9.68%, of income before income taxes as compared to $1.4 million, or 33.64%, of income before income taxes for the fourth quarter of 2016. The decrease in effective tax rate was largely related to $936,000 in excess tax benefit on stock-based compensation, which is recognized as a credit to income tax expense by way of the adoption of ASU 2016-09.
Asset Quality
Total nonperforming assets decreased $225,000, or 3.42%, to $6.4 million at March 31, 2017 from December 31, 2016. The ratio of nonperforming assets to total assets was 0.48% at March 31, 2017 compared to 0.52% at December 31, 2016. The decrease in total nonperforming assets was the result of charge-offs and the return of one loan to accrual status during the first quarter. In addition, one loan was moved to other real estate owned during the first quarter.
The Company had net charge-offs on loans of $108,000 in the first quarter of 2017, compared to net charge-offs of $783,000 in the fourth quarter of 2016.
The ratios of the Company’s allowance for loan losses to nonperforming loans and allowance for loan losses to total loans were 219.65% and 1.12% at March 31, 2017, respectively.
The Company recorded a provision for loan losses in the first quarter of 2017 of $375,000 compared to $0 for the same period in 2016. The current year provision was the result of the loan growth experienced during the first quarter of 2017.
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 Joliet, 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.
Additional Information
This document does not constitute an offer to sell or the solicitation of an offer to buy any securities. First Busey has filed a registration statement on Form S-4 with the SEC in connection with the proposed merger. The registration statement includes a proxy statement of First Community that also constitutes a prospectus of First Busey, which will be sent to the shareholders of First Community. First Community’s shareholders are advised to read the proxy statement/prospectus because it will contain important information about First Busey, First Community and the proposed merger. This document and other documents relating to the merger filed by First Busey and First Community can be obtained free of charge from the SEC’s website at www.sec.gov. These documents also can be obtained free of charge by accessing First Busey’s website at www.busey.com under the tab “Investors Relations” and then under “SEC Filings” or by accessing First Community’s website at www.fcbankgroup.com under “Investor Relations” and then under “SEC Filings.” Alternatively, these documents, when available, can be obtained free of charge from First Busey upon written request to First Busey Corporation, Corporate Secretary, 100 W. University Avenue, Champaign, Illinois 61820 or by calling (217) 365-4544, or from First Community, upon written request to First Community Financial Partners, Inc., Corporate Secretary, 2801 Black Road, Joliet, Illinois 60435 or by calling (815) 725-1885.
Participations in the Solicitation
First Busey, First Community and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from shareholders in connection with the proposed merger under the rules of the SEC. Information about these participants may be found in the definitive proxy statement of First Busey relating to its 2017 Annual Meeting of Stockholders filed with the SEC on April 13, 2017 and the Annual Report on Form 10-K of First Community filed with the SEC on March 8, 2017, as amended by Amendment No. 1 to Form 10-K filed with the SEC on April 13, 2017. These documents can be obtained free of charge from the sources indicated above. Additional information regarding the interests of these participants will also be included in the proxy statement/prospectus regarding the proposed merger when it becomes available.
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 proposed merger with First Busey, including possible termination of the Agreement and Plan of Merger; unexpected results of acquisitions; 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; 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 (the “SEC”), including First Community’s Annual Report on Form 10-K filed on March 8, 2017, as amended by Amendment No. 1 to Form 10-K filed with the SEC on April 13, 2017.
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 SEC, 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, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 |
| Period-End Balance Sheet |
| | | | |
| (In thousands)(Unaudited) | | | | |
| Assets |
| | | | |
| Cash and due from banks | $ | 12,740 |
| $ | 16,225 |
| $ | 21,622 |
| $ | 13,777 |
| $ | 9,132 |
|
| Interest-bearing deposits in banks | 13,494 |
| 8,548 |
| 33,349 |
| 19,335 |
| 30,558 |
|
| Securities available for sale | 200,758 |
| 202,198 |
| 188,062 |
| 179,517 |
| 203,874 |
|
| Mortgage loans held for sale | 78 |
| 1,230 |
| 1,331 |
| 711 |
| 133 |
|
| Loans held for sale | — |
| 1,085 |
| — |
| — |
| — |
|
| Leases, net | 3,381 |
| 3,290 |
| 739 |
| 448 |
| — |
|
| Commercial real estate | 474,035 |
| 425,910 |
| 419,958 |
| 410,461 |
| 378,304 |
|
| Commercial | 296,309 |
| 281,804 |
| 274,889 |
| 239,038 |
| 181,142 |
|
| Residential 1-4 family | 181,426 |
| 175,978 |
| 167,388 |
| 143,908 |
| 139,208 |
|
| Multifamily | 36,040 |
| 36,703 |
| 31,880 |
| 30,809 |
| 31,511 |
|
| Construction and land development | 51,085 |
| 47,338 |
| 39,836 |
| 30,834 |
| 27,798 |
|
| Farmland and agricultural production | 11,892 |
| 12,628 |
| 12,985 |
| 9,235 |
| 9,060 |
|
| Consumer and other | 9,664 |
| 7,967 |
| 9,280 |
| 7,924 |
| 7,250 |
|
| Total loans | 1,060,451 |
| 988,328 |
| 956,216 |
| 872,209 |
| 774,273 |
|
| Allowance for loan losses | 11,951 |
| 11,684 |
| 12,284 |
| 12,044 |
| 11,335 |
|
| Net loans | 1,048,500 |
| 976,644 |
| 943,932 |
| 860,165 |
| 762,938 |
|
| Other assets | 57,818 |
| 58,990 |
| 57,563 |
| 51,409 |
| 54,227 |
|
| Total Assets | $ | 1,336,769 |
| $ | 1,268,210 |
| $ | 1,246,598 |
| $ | 1,125,362 |
| $ | 1,060,862 |
|
|
| | | |
|
| Liabilities and Shareholders' Equity | | | | |
| Noninterest bearing deposits | $ | 261,532 |
| $ | 247,856 |
| $ | 246,262 |
| $ | 203,258 |
| $ | 204,414 |
|
| Savings deposits | 69,295 |
| 64,695 |
| 61,399 |
| 40,603 |
| 38,481 |
|
| NOW accounts | 165,696 |
| 160,862 |
| 151,243 |
| 103,324 |
| 104,136 |
|
| Money market accounts | 293,999 |
| 282,865 |
| 267,667 |
| 238,229 |
| 237,873 |
|
| Time deposits | 317,724 |
| 326,878 |
| 338,680 |
| 311,416 |
| 294,076 |
|
| Total deposits | 1,108,246 |
| 1,083,156 |
| 1,065,251 |
| 896,830 |
| 878,980 |
|
| Total borrowings | 104,598 |
| 66,419 |
| 61,879 |
| 114,701 |
| 72,237 |
|
| Other liabilities | 3,161 |
| 4,920 |
| 4,304 |
| 2,722 |
| 2,855 |
|
| Total Liabilities | 1,216,005 |
| 1,154,495 |
| 1,131,434 |
| 1,014,253 |
| 954,072 |
|
| Shareholders’ equity | 120,764 |
| 113,715 |
| 115,164 |
| 111,109 |
| 106,790 |
|
| Total Shareholders’ Equity | 120,764 |
| 113,715 |
| 115,164 |
| 111,109 |
| 106,790 |
|
| Total Liabilities and Shareholders’ Equity | $ | 1,336,769 |
| $ | 1,268,210 |
| $ | 1,246,598 |
| $ | 1,125,362 |
| $ | 1,060,862 |
|
|
| | | | | | | | | | | | | | | |
| FINANCIAL SUMMARY | | | | | |
| | Three months ended, |
| | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 |
| Interest income: | (In thousands, except per share data)(Unaudited) |
| Loans, including fees | $ | 11,032 |
| $ | 10,663 |
| $ | 10,229 |
| $ | 9,024 |
| $ | 8,508 |
|
| Securities | 1,134 |
| 1,033 |
| 1,041 |
| 1,042 |
| 1,101 |
|
| Federal funds sold and other | 39 |
| 53 |
| 43 |
| 21 |
| 19 |
|
| Total interest income | 12,205 |
| 11,749 |
| 11,313 |
| 10,087 |
| 9,628 |
|
| Interest expense: | | | | | |
| Deposits | 1,211 |
| 1,150 |
| 1,081 |
| 957 |
| 940 |
|
| Federal funds purchased and other borrowed funds | 69 |
| 61 |
| 112 |
| 119 |
| 93 |
|
| Subordinated debentures | 297 |
| 297 |
| 297 |
| 297 |
| 297 |
|
| Total interest expense | 1,577 |
| 1,508 |
| 1,490 |
| 1,373 |
| 1,330 |
|
| Net interest income | 10,628 |
| 10,241 |
| 9,823 |
| 8,714 |
| 8,298 |
|
| Provision for loan losses | 375 |
| 183 |
| 383 |
| 500 |
| — |
|
| Net interest income after provision for loan losses | 10,253 |
| 10,058 |
| 9,440 |
| 8,214 |
| 8,298 |
|
| Noninterest income: | | | | | |
| Service charges on deposit accounts | 309 |
| 285 |
| 289 |
| 207 |
| 204 |
|
| Gain on sale of loans | — |
| 9 |
| — |
| 7 |
| — |
|
| Gain on sale of securities | — |
| — |
| 14 |
| 603 |
| — |
|
| Mortgage fee income | 116 |
| 214 |
| 169 |
| 109 |
| 78 |
|
| Bargain purchase gain | — |
| — |
| 1,920 |
| — |
| — |
|
| Other | 532 |
| 390 |
| 381 |
| 315 |
| 273 |
|
| Total noninterest income | 957 |
| 898 |
| 2,773 |
| 1,241 |
| 555 |
|
| Noninterest expenses: | | | | | |
| Salaries and employee benefits | 4,222 |
| 4,309 |
| 3,812 |
| 3,311 |
| 3,256 |
|
| Occupancy and equipment expense | 475 |
| 548 |
| 568 |
| 429 |
| 437 |
|
| Data processing | 420 |
| 267 |
| 700 |
| 690 |
| 257 |
|
| Professional fees | 734 |
| 286 |
| 369 |
| 375 |
| 392 |
|
| Advertising and business development | 210 |
| 245 |
| 328 |
| 262 |
| 215 |
|
| Losses on sale and writedowns of foreclosed assets, net | — |
| — |
| 1 |
| 31 |
| 16 |
|
| Foreclosed assets expenses, net of rental income | 19 |
| 26 |
| (99 | ) | 60 |
| 53 |
|
| Other expense | 1,359 |
| 1,237 |
| 1,380 |
| 974 |
| 1,310 |
|
| Total noninterest expense | 7,439 |
| 6,918 |
| 7,059 |
| 6,132 |
| 5,936 |
|
| Income before income taxes | 3,771 |
| 4,038 |
| 5,154 |
| 3,323 |
| 2,917 |
|
| Income taxes | 365 |
| 1,358 |
| 1,019 |
| 1,058 |
| 889 |
|
| Net income applicable to common shareholders | $ | 3,406 |
| $ | 2,680 |
| $ | 4,135 |
| $ | 2,265 |
| $ | 2,028 |
|
| |
|
| | | | |
| Basic earnings per share | $ | 0.19 |
| $ | 0.16 |
| $ | 0.24 |
| $ | 0.13 |
| $ | 0.12 |
|
| |
|
| | | | |
| Diluted earnings per share | $ | 0.19 |
| $ | 0.15 |
| $ | 0.24 |
| $ | 0.13 |
| $ | 0.12 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| Three months ended, |
| March 31, 2017 | December 31, 2016 | March 31, 2016 |
| | 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) | $ | 1,013,044 |
| $ | 11,032 |
| 4.42 | % | $ | 971,198 |
| $ | 10,663 |
| 4.37 | % | $ | 768,983 |
| $ | 8,508 |
| 4.45 | % |
Investment securities (2) | 203,886 |
| 1,134 |
| 2.26 | % | 199,940 |
| 1,033 |
| 2.06 | % | 206,535 |
| 1,101 |
| 2.14 | % |
| Interest-bearing deposits with other banks | 13,566 |
| 39 |
| 1.17 | % | 25,612 |
| 53 |
| 0.82 | % | 13,690 |
| 19 |
| 0.56 | % |
| Total earning assets | $ | 1,230,496 |
| $ | 12,205 |
| 4.02 | % | $ | 1,196,750 |
| $ | 11,749 |
| 3.91 | % | $ | 989,208 |
| $ | 9,628 |
| 3.91 | % |
| Other assets | 61,583 |
|
|
| 61,777 |
| | | 55,124 |
|
|
|
|
| Total assets | $ | 1,292,079 |
|
|
| $ | 1,258,527 |
| | | $ | 1,044,332 |
|
|
|
|
|
|
|
|
| | |
|
|
|
| Liabilities |
|
|
| | | |
|
|
|
| NOW accounts | $ | 163,922 |
| $ | 117 |
| 0.29 | % | $ | 147,627 |
| $ | 118 |
| 0.32 | % | $ | 104,467 |
| $ | 71 |
| 0.27 | % |
| Money market accounts | 284,043 |
| 270 |
| 0.39 | % | 279,110 |
| 203 |
| 0.29 | % | 234,455 |
| 162 |
| 0.28 | % |
| Savings accounts | 65,882 |
| 16 |
| 0.10 | % | 63,816 |
| 15 |
| 0.09 | % | 37,194 |
| 11 |
| 0.12 | % |
| Time deposits | 325,690 |
| 808 |
| 1.01 | % | 331,025 |
| 814 |
| 0.98 | % | 292,491 |
| 696 |
| 0.96 | % |
| Total interest bearing deposits | 839,537 |
| 1,211 |
| 0.58 | % | 821,578 |
| 1,150 |
| 0.56 | % | 668,607 |
| 940 |
| 0.57 | % |
| Securities sold under agreements to repurchase | 23,543 |
| 10 |
| 0.17 | % | 26,548 |
| 11 |
| 0.16 | % | 23,902 |
| 9 |
| 0.15 | % |
| Secured borrowings | — |
| — |
| — | % | 2,134 |
| 22 |
| 4.10 | % | 10,528 |
| 74 |
| 2.83 | % |
| FHLB borrowings | 31,398 |
| 59 |
| 0.76 | % | 21,764 |
| 28 |
| 0.51 | % | 12,067 |
| 10 |
| 0.33 | % |
| Subordinated debentures | 15,300 |
| 297 |
| 7.87 | % | 15,300 |
| 297 |
| 7.72 | % | 15,300 |
| 297 |
| 7.81 | % |
| Total interest bearing liabilities | $ | 909,778 |
| $ | 1,577 |
| 0.70 | % | $ | 887,324 |
| $ | 1,508 |
| 0.68 | % | $ | 730,404 |
| $ | 1,330 |
| 0.73 | % |
| Noninterest bearing deposits | 260,632 |
|
|
|
|
| 253,877 |
|
|
|
|
| 205,215 |
|
|
|
|
|
| Other liabilities | 4,370 |
|
|
| 3,817 |
| | | 3,051 |
|
|
|
|
| Total liabilities | $ | 1,174,780 |
|
|
|
|
| $ | 1,145,018 |
| | | $ | 938,670 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| | |
|
|
|
|
|
|
| Total shareholders’ equity | $ | 117,299 |
|
|
|
|
| $ | 113,509 |
| | | $ | 105,662 |
|
|
|
|
|
|
|
|
|
| | | |
|
|
|
|
|
| Total liabilities and shareholders’ equity | $ | 1,292,079 |
|
|
| $ | 1,258,527 |
| | | $ | 1,044,332 |
|
|
|
|
|
|
|
|
|
|
| | |
|
|
|
|
|
| Net interest income |
| $ | 10,628 |
|
|
| | $ | 10,241 |
| |
| $ | 8,298 |
|
|
|
|
|
|
| | |
|
|
|
|
|
| Interest rate spread |
|
| 3.32 | % | |
| 3.23 | % |
|
| 3.18 | % |
|
|
|
| | |
|
|
|
|
| Net interest margin |
|
|
| 3.50 | % | | | 3.40 | % |
|
|
|
| 3.37 | % |
|
|
| Footnotes: |
(1) Average loans include nonperforming loans. |
(2) No tax-equivalent adjustments were made, as the effect thereof was not material. |
|
| | | | | | | | | | | | | | | |
| COMMON STOCK DATA | | | | |
| | | | | | |
| | 2017 | 2016 |
| | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter |
| | (Unaudited) |
Market value (1): | | | | | |
| End of period | $ | 12.75 |
| $ | 11.70 |
| $ | 9.52 |
| $ | 8.80 |
| $ | 8.70 |
|
| High | 13.65 |
| 12.15 |
| 9.55 |
| 9.10 |
| 8.84 |
|
| Low | 10.70 |
| 9.10 |
| 8.35 |
| 8.18 |
| 7.00 |
|
| Book value (end of period) | 6.79 |
| 6.59 |
| 6.68 |
| 6.47 |
| 6.22 |
|
| Tangible book value (end of period) | 6.73 |
| 6.53 |
| 6.62 |
| 6.47 |
| 6.22 |
|
| Shares outstanding (end of period) | 17,774,886 |
| 17,242,645 |
| 17,237,845 |
| 17,183,780 |
| 17,175,864 |
|
| Average shares outstanding | 17,533,867 |
| 17,239,897 |
| 17,189,113 |
| 17,182,197 |
| 17,125,928 |
|
| Average diluted shares outstanding | 18,213,720 |
| 17,860,017 |
| 17,565,667 |
| 17,550,547 |
| 17,451,354 |
|
|
|
| (1) The prices shown are as reported on the NASDAQ Capital Market. |
|
| | | | | | | | | | | | | | | |
| ASSET QUALITY DATA | | | | | |
| | | | | | |
| | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 |
| (Dollars in thousands)(Unaudited) | | | | | |
| Loans identified as nonperforming | $ | 5,441 |
| $ | 5,856 |
| $ | 8,385 |
| $ | 2,622 |
| $ | 2,146 |
|
| Other nonperforming loans | — |
| — |
| 91 |
| — |
| — |
|
| Total nonperforming loans | 5,441 |
| 5,856 |
| 8,476 |
| 2,622 |
| 2,146 |
|
| Foreclosed assets | 915 |
| 725 |
| 725 |
| 2,211 |
| 5,231 |
|
| Total nonperforming assets | $ | 6,356 |
| $ | 6,581 |
| $ | 9,201 |
| $ | 4,833 |
| $ | 7,377 |
|
| | | | | | |
| Allowance for loan losses | $ | 11,951 |
| $ | 11,684 |
| $ | 12,284 |
| $ | 12,044 |
| $ | 11,335 |
|
| Nonperforming assets to total assets | 0.48 | % | 0.52 | % | 0.74 | % | 0.43 | % | 0.70 | % |
| Nonperforming loans to total assets | 0.41 | % | 0.46 | % | 0.68 | % | 0.23 | % | 0.20 | % |
| Allowance for loan losses to nonperforming loans | 219.65 | % | 199.52 | % | 144.93 | % | 459.34 | % | 528.19 | % |
|
| | | | | | | | | | | | | | | |
| ALLOWANCE FOR LOAN LOSSES ROLLFORWARD |
| (Dollars in thousands)(Unaudited) | Three months ended, |
| | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 |
| Beginning balance | $ | 11,684 |
| $ | 12,284 |
| $ | 12,044 |
| $ | 11,335 |
| $ | 11,741 |
|
| Charge-offs | 206 |
| 1,363 |
| 340 |
| 193 |
| 506 |
|
| Recoveries | 98 |
| 580 |
| 197 |
| 402 |
| 100 |
|
| Net charge-offs | 108 |
| 783 |
| 143 |
| (209 | ) | 406 |
|
| Provision for loan losses | 375 |
| 183 |
| 383 |
| 500 |
| — |
|
| Ending balance | $ | 11,951 |
| $ | 11,684 |
| $ | 12,284 |
| $ | 12,044 |
| $ | 11,335 |
|
| | | | | | |
| Net charge-offs | $ | 108 |
| $ | 783 |
| $ | 143 |
| $ | (209 | ) | $ | 406 |
|
| Net chargeoff percentage annualized | 0.04 | % | 0.32 | % | 0.06 | % | (0.11 | )% | 0.21 | % |
|
| | | | | | | | | | |
| OTHER DATA | | | | | |
| (Unaudited) | | | | | |
| | Three months ended, |
| | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 |
| Return on average assets | 1.05 | % | 0.85 | % | 1.36 | % | 0.84 | % | 0.78 | % |
| Return on average equity | 11.61 | % | 9.44 | % | 14.50 | % | 8.36 | % | 7.68 | % |
| Net interest margin | 3.50 | % | 3.42 | % | 3.44 | % | 3.39 | % | 3.36 | % |
| Average loans to assets | 78.40 | % | 77.20 | % | 75.50 | % | 76.55 | % | 73.63 | % |
| Average loans to deposits | 92.08 | % | 90.49 | % | 90.92 | % | 94.16 | % | 88.00 | % |
| Average noninterest bearing deposits to total deposits | 23.52 | % | 23.44 | % | 22.51 | % | 22.75 | % | 23.35 | % |
| | | | | | |
| COMPANY CAPITAL RATIOS | | | | | |
| (Unaudited) | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 |
| Tier 1 leverage ratio | 9.26 | % | 9.10 | % | 9.15 | % | 9.77 | % | 9.72 | % |
| Common equity tier 1 capital ratio | 10.33 | % | 10.51 | % | 10.83 | % | 11.26 | % | 11.94 | % |
| Tier 1 capital ratio | 10.33 | % | 10.51 | % | 10.83 | % | 11.26 | % | 11.94 | % |
| Total capital ratio | 12.68 | % | 12.99 | % | 13.52 | % | 14.14 | % | 14.99 | % |
| Tangible common equity to tangible assets | 8.95 | % | 8.88 | % | 9.24 | % | 10.47 | % | 10.26 | % |
|
| | | | | | | | | | | | | | | |
| NON-GAAP MEASURES | | | | |
| | | | | | |
Pre-tax pre-provision core income (1) | | | | |
| (In thousands)(Unaudited) | | | | | |
| | For the three months ended, |
| | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 |
| Pre-tax net income | $ | 3,771 |
| $ | 4,038 |
| $ | 5,154 |
| $ | 3,323 |
| $ | 2,917 |
|
| Provision for loan losses | 375 |
| 183 |
| 383 |
| 500 |
| — |
|
| Gain on sale of securities | — |
| — |
| (14 | ) | (603 | ) | — |
|
| Merger related employee retention payments | 232 |
| — |
| — |
| — |
| — |
|
| Merger related expenses included in professional fees | 417 |
| — |
| 24 |
| 26 |
| 100 |
|
| Merger related expenses included in data processing fees | — |
| 14 |
| 363 |
| 410 |
| — |
|
| Severances paid in relation to the merger | — |
| — |
| 92 |
| — |
| — |
|
| Stock options included in other expense | — |
| — |
| 165 |
| — |
| — |
|
| Bargain purchase option | — |
| — |
| (1,920 | ) | — |
| — |
|
| Losses (gain) on sale and writedowns of foreclosed assets, net | — |
| — |
| 1 |
| 31 |
| 16 |
|
| Foreclosed assets expense, net of rental income | 19 |
| 26 |
| (99 | ) | 60 |
| 53 |
|
| Pre-tax pre-provision core income | $ | 4,814 |
| $ | 4,261 |
| $ | 4,149 |
| $ | 3,747 |
| $ | 3,086 |
|
|
|
(1) This is a non-GAAP financial measure. In compliance with applicable rules of the SEC, 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. |
