Exhibit 99.1
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PRESS RELEASE |
| Contact: Jeff W. Dick | ||
HOLD FOR RELEASE: | April 14, 2020, 8:00 AM ET | (703) 481-4567 | ||
MainStreet Bancshares, Inc. Reports First Quarter Earnings
Fairfax, Virginia – April 14, 2020 - MainStreet Bancshares, Inc. (Nasdaq: MNSB) reported net income of $3.5 million for the first quarter of 2020, which represents a 1.04% return on average assets, and a 9.97% return on average equity, or $0.42 per share of common stock (basic and diluted) for the quarter-ended March 31, 2020.
Net interest income of $10.3 million and noninterest income of $1.4 million continued to trend favorably and consistently for the quarter ended March 31, 2020. Loan loss provisions of $350,000 for the quarter ended March 31, 2020 were primarily driven by loan growth.
Total assets were $1.3 billion and net loans were $1.1 billion as of March 31, 2020. Asset quality remained solid with non-performing assets to total assets at 0.10% as of March 31, 2020. Non-interest-bearing deposits were $241.0 million, representing just over 21% of total deposits at March 31, 2020. Total deposits as of March 31, 2020 were $1.1 billion. Capital levels for the Company remain strong.
As of March 31, 2020, the Company’s tangible book value per share was $16.98, up 12.1% from $15.15 as of March 31, 2019. According to Nasdaq, there were 12,093 trades during the quarter totaling 749,744 shares traded. The closing share price of the Company’s common stock on March 31, 2020 was $16.76, or 98.7% of book value. The market cap was $138.4 million as of March 31, 2020. In reaction to the significant drop in share price, the Company repurchased 60,000 shares (0.7% of shares outstanding) on March 13, 2020 at a price of $16.54 per share under its previously announced share repurchase program. The Company does not intend to repurchase additional shares at this time.
COVID-19 Timeline | ||||
12/31/2019 | 1/23/2020 | 2/29/2020 | 3/13/2020 | 3/16/2020 |
WHO reports mysterious illness in China | WHO declares global health emergency | 1st death reported in U.S. | President Trump declares national emergency | MainStreet Bank adopts work from home strategy |
The coronavirus (COVID-19) changed from a relatively unknown status at the start of the year to “pandemic” status in the United States by mid-March. The Company’s first quarter performance was not significantly impacted by the effects of the coronavirus pandemic.
QUOTES: “We had a good first quarter, but from mid-March onward, we’ve been focused on preventative measures to help our customers,” said Chris Brockett, President of MainStreet Bancshares, Inc. and MainStreet Bank. “Our team created meaningful loan forbearance programs for consumers, professionals and small businesses, with the goal of helping to preserve their liquidity. And, when President Trump signed H.R 748, The CARES Act, into law on March 26th, our team worked around the clock to implement the Paycheck Protection Program for our customers.”
“Our technology has been a gamechanger,” said Jeff W. Dick, Chairman & CEO of MainStreet Bancshares, Inc. and MainStreet Bank. “We made the decision to work from home on a Sunday and the next day, Monday March 16th, all but the limited branch team were up and working from home. Since most of our customers were already comfortable using our online banking platform, we temporarily closed two of our seven locations and reduced the hours of the remaining locations. We set the loan forbearance documents and Paycheck Protection Program documents up for DocuSign digital signature(s) for ease of execution, and we hold all meetings by video calls to
keep our teams ‘in the know’. Finally, we increased the average hourly wage of our dedicated customer-facing branch staff by upwards of 50% as they are literally on the front line of this pandemic.”
ABOUT MAINSTREET BANK: MainStreet operates seven branches in Herndon, Fairfax, Fairfax City, McLean, Leesburg, Clarendon and Washington D.C.
MainStreet Bank has 55,000 free ATMs and a fully integrated online and mobile banking solution. The Bank is not restricted by a conventional branching system, as it can offer business customers the ability to Put Our Bank in Your Office®. With robust and easy-to-use online business banking technology, MainStreet has “put our bank” in well over 1,000 businesses in the metropolitan area.
MainStreet Bank has a full complement of payment system services for third party payment providers. MainStreet has a known market leader and a highly experienced team ready to help payment providers create a solution perfect for their needs.
MainStreet Bank has a robust line of business and professional lending products, including government contracting lines of credit, commercial lines and term loans, residential and commercial construction and commercial real estate. MainStreet Bank is an SBA Preferred Lender, offering SBA 7(a) and 504 lending solutions. From mobile banking and Apple Pay to instant-issue Debit Cards, MainStreet Bank is always looking for ways to improve its customer experience.
MainStreet Bank was the first community bank in the Washington, D.C. metropolitan area to offer a full online business banking solution. MainStreet Bank was also the first bank headquartered in the Commonwealth of Virginia to offer CDARS – a solution that provides up to $55 million in FDIC insurance. Further information on the Bank can be obtained by visiting its website at mstreetbank.com.
This release contains forward-looking statements, including our expectations with respect to future events that are subject to various risks and uncertainties. The statements contained in this release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursuant,” “target,” “continue,” and similar expressions are intended to identify such forward-looking statements. Factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations include: fluctuation in market rates of interest and loan and deposit pricing, adverse changes in the overall national economy as well as adverse economic conditions in our specific market areas, maintenance and development of well-established and valued client relationships and referral source relationships, and acquisition or loss of key production personnel.
We caution readers that the list of factors above is not exclusive. The forward-looking statements are made as of the date of this release, and we may not undertake steps to update the forward-looking statements to reflect the impact of any circumstances or events that arise after the date the forward-looking statements are made. In addition, our past results of operations are not necessarily indicative of future performance.
UNAUDITED CONSOLIDATED BALANCE SHEET INFORMATION
(Unaudited)
(In thousands, except share data)
|
| March 31, 2020 |
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| December 31, 2019 |
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| September 30, 2019 |
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| June 30, 2019 |
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| March 31, 2019 |
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ASSETS |
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Cash and cash equivalents |
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Cash and due from banks |
| $ | 62,098 |
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| $ | 53,376 |
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| $ | 52,580 |
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| $ | 44,976 |
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| $ | 29,741 |
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Federal funds sold |
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| 10,677 |
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| 11,468 |
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| 19,432 |
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| 19,835 |
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| 30,034 |
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Total cash and cash equivalents |
|
| 72,775 |
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| 64,844 |
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| 72,012 |
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| 64,811 |
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|
| 59,775 |
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Investment securities available for sale, at fair value |
|
| 102,191 |
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| 92,791 |
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| 88,198 |
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|
| 60,079 |
|
|
| 69,308 |
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Investment securities held to maturity, at carrying value |
|
| 23,878 |
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|
| 23,914 |
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|
| 24,410 |
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|
| 24,946 |
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|
| 25,487 |
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Restricted equity securities, at cost |
|
| 5,041 |
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| 6,157 |
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| 4,882 |
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| 5,307 |
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| 5,732 |
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Loans, net of allowance for loan losses of $9,898, $9,584, $9,370, $9,185, and $9,189, respectively |
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| 1,059,628 |
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| 1,030,425 |
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| 992,609 |
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| 983,574 |
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| 943,735 |
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Premises and equipment, net |
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| 14,666 |
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| 14,153 |
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| 14,109 |
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| 14,208 |
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| 14,226 |
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Other real estate owned, net |
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| 1,207 |
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| 1,207 |
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| 1,207 |
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| 1,207 |
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|
| — |
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Accrued interest and other receivables |
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| 4,809 |
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| 5,420 |
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| 5,373 |
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| 5,681 |
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| 5,644 |
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Bank owned life insurance |
|
| 24,761 |
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| 24,562 |
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| 19,381 |
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| 14,275 |
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| 14,169 |
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Other assets |
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| 20,786 |
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| 13,885 |
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| 11,414 |
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| 9,945 |
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| 7,824 |
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Total Assets |
| $ | 1,329,742 |
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| $ | 1,277,358 |
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| $ | 1,233,595 |
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| $ | 1,184,033 |
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| $ | 1,145,900 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Liabilities: |
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Non-interest bearing deposits |
| $ | 240,979 |
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| $ | 252,707 |
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| $ | 218,087 |
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| $ | 201,405 |
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| $ | 193,744 |
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Interest-bearing DDA deposits |
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| 16,846 |
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| 53,707 |
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| 54,438 |
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| 65,117 |
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| 59,639 |
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Savings and NOW deposits |
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| 60,454 |
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| 63,015 |
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| 63,746 |
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| 61,945 |
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| 61,537 |
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Money market deposits |
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| 265,443 |
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| 141,337 |
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| 125,716 |
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| 115,641 |
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| 147,655 |
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Time deposits |
|
| 559,489 |
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|
| 560,857 |
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| 601,896 |
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| 566,292 |
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|
| 504,071 |
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Total deposits |
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| 1,143,211 |
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|
| 1,071,623 |
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| 1,063,883 |
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|
| 1,010,400 |
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|
| 966,646 |
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Federal Home Loan Bank advances and other borrowings |
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| 10,000 |
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| 40,000 |
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| 10,000 |
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| 20,000 |
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| 30,000 |
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Subordinated debt |
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| 14,812 |
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| 14,805 |
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| 14,798 |
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| 14,791 |
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| 14,783 |
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Other liabilities |
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| 21,424 |
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| 13,896 |
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| 11,697 |
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| 9,806 |
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|
| 9,488 |
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Total Liabilities |
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| 1,189,447 |
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| 1,140,324 |
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| 1,100,378 |
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| 1,054,997 |
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| 1,020,917 |
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Stockholders’ Equity: |
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Common stock, par value $4 per share, authorized 10,000,000 shares; issued and outstanding, 8,260,231 shares at March 31, 2020 including 155,742 unvested shares, 8,260,259 shares at December 31, 2019 including 160,961 unvested shares, 8,260,259 shares at September 30, 2019 including 160,961 unvested shares, 8,250,259 at June 30, 2019 including 153,586 unvested shares, 8,249,759 shares at March 31, 2019 including 153,086 unvested shares. |
|
| 32,418 |
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| 32,397 |
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| 32,397 |
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|
| 32,387 |
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| 32,387 |
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Capital surplus |
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| 74,482 |
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| 75,117 |
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| 74,860 |
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|
| 74,609 |
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|
| 74,353 |
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Retained earnings |
|
| 32,567 |
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|
| 29,097 |
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|
| 25,535 |
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|
| 21,826 |
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|
| 18,395 |
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Accumulated other comprehensive gain (loss) |
|
| 828 |
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|
| 423 |
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|
| 425 |
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|
| 214 |
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|
| (152 | ) |
Total Stockholders’ Equity |
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| 140,295 |
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|
| 137,034 |
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|
| 133,217 |
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|
| 129,036 |
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|
| 124,983 |
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Total Liabilities and Stockholders’ Equity |
| $ | 1,329,742 |
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| $ | 1,277,358 |
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| $ | 1,233,595 |
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| $ | 1,184,033 |
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| $ | 1,145,900 |
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UNAUDITED CONSOLIDATED STATEMENTS OF INCOME INFORMATION
(Unaudited)
(In thousands, except share and per share data)
|
| Year-to-Date |
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| Three Months Ended |
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|
| March 31, 2020 |
|
| March 31, 2019 |
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| March 31, 2020 |
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| December 31, 2019 |
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| September 30, 2019 |
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| June 30, 2019 |
|
| March 31, 2019 |
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INTEREST INCOME: |
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Interest and fees on loans |
| $ | 14,220 |
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| $ | 12,916 |
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| $ | 14,220 |
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| $ | 14,223 |
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| $ | 14,192 |
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| $ | 13,877 |
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| $ | 12,916 |
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Interest on investment securities |
|
| 501 |
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|
| 556 |
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|
| 501 |
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|
| 534 |
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|
| 497 |
|
|
| 615 |
|
|
| 556 |
|
Interest on federal funds sold |
|
| 395 |
|
|
| 345 |
|
|
| 395 |
|
|
| 271 |
|
|
| 412 |
|
|
| 375 |
|
|
| 345 |
|
Total interest income |
|
| 15,116 |
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|
| 13,817 |
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|
| 15,116 |
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|
| 15,028 |
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|
| 15,101 |
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|
| 14,867 |
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|
| 13,817 |
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INTEREST EXPENSE: |
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Interest on interest bearing DDA deposits |
|
| 117 |
|
|
| 245 |
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|
| 117 |
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|
| 195 |
|
|
| 275 |
|
|
| 283 |
|
|
| 245 |
|
Interest on savings and NOW deposits |
|
| 64 |
|
|
| 73 |
|
|
| 64 |
|
|
| 71 |
|
|
| 71 |
|
|
| 74 |
|
|
| 73 |
|
Interest on money market deposits |
|
| 778 |
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|
| 763 |
|
|
| 778 |
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|
| 489 |
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|
| 539 |
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|
| 587 |
|
|
| 763 |
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Interest on time deposits |
|
| 3,566 |
|
|
| 2,931 |
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|
| 3,566 |
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|
| 3,730 |
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|
| 3,900 |
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|
| 3,635 |
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|
| 2,931 |
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Interest on Federal Home Loan Bank advances and other borrowings |
|
| 50 |
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|
| 219 |
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|
| 50 |
|
|
| 92 |
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|
| 76 |
|
|
| 162 |
|
|
| 219 |
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Interest on subordinated debt |
|
| 241 |
|
|
| 238 |
|
|
| 241 |
|
|
| 244 |
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|
| 244 |
|
|
| 241 |
|
|
| 238 |
|
Total interest expense |
|
| 4,816 |
|
|
| 4,469 |
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|
| 4,816 |
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|
| 4,821 |
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|
| 5,105 |
|
|
| 4,982 |
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|
| 4,469 |
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Net interest income |
|
| 10,300 |
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|
| 9,348 |
|
|
| 10,300 |
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|
| 10,207 |
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|
| 9,996 |
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|
| 9,885 |
|
|
| 9,348 |
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Provision for loan losses |
|
| 350 |
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|
| 325 |
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|
| 350 |
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|
| 358 |
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|
| 185 |
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|
| 750 |
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|
| 325 |
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Net interest income after provision for loan losses |
|
| 9,950 |
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|
| 9,023 |
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|
| 9,950 |
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|
| 9,849 |
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| 9,811 |
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|
| 9,135 |
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|
| 9,023 |
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NON-INTEREST INCOME: |
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Deposit account service charges |
|
| 487 |
|
|
| 370 |
|
|
| 487 |
|
|
| 460 |
|
|
| 392 |
|
|
| 446 |
|
|
| 370 |
|
Bank owned life insurance income |
|
| 199 |
|
|
| 105 |
|
|
| 199 |
|
|
| 181 |
|
|
| 106 |
|
|
| 106 |
|
|
| 105 |
|
Loan swap fee income |
|
| 403 |
|
|
| 290 |
|
|
| 403 |
|
|
| 111 |
|
|
| 407 |
|
|
| 181 |
|
|
| 290 |
|
Net gain on available-for-sale securities |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 5 |
|
|
| — |
|
Net gains on sale of loans |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 303 |
|
|
| 263 |
|
|
| — |
|
Other fee income |
|
| 325 |
|
|
| 161 |
|
|
| 325 |
|
|
| 407 |
|
|
| 228 |
|
|
| 340 |
|
|
| 161 |
|
Total other income |
|
| 1,414 |
|
|
| 926 |
|
|
| 1,414 |
|
|
| 1,158 |
|
|
| 1,436 |
|
|
| 1,341 |
|
|
| 926 |
|
NON-INTEREST EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Salaries and employee benefits |
|
| 4,433 |
|
|
| 3,860 |
|
|
| 4,433 |
|
|
| 4,179 |
|
|
| 3,890 |
|
|
| 3,847 |
|
|
| 3,860 |
|
Furniture and equipment expenses |
|
| 454 |
|
|
| 385 |
|
|
| 454 |
|
|
| 457 |
|
|
| 451 |
|
|
| 435 |
|
|
| 385 |
|
Advertising and marketing |
|
| 256 |
|
|
| 105 |
|
|
| 256 |
|
|
| 375 |
|
|
| 235 |
|
|
| 191 |
|
|
| 105 |
|
Occupancy expenses |
|
| 267 |
|
|
| 213 |
|
|
| 267 |
|
|
| 221 |
|
|
| 214 |
|
|
| 217 |
|
|
| 213 |
|
Outside services |
|
| 276 |
|
|
| 227 |
|
|
| 276 |
|
|
| 169 |
|
|
| 306 |
|
|
| 161 |
|
|
| 227 |
|
Administrative expenses |
|
| 164 |
|
|
| 167 |
|
|
| 164 |
|
|
| 198 |
|
|
| 190 |
|
|
| 176 |
|
|
| 167 |
|
Other operating expenses |
|
| 1,293 |
|
|
| 1,051 |
|
|
| 1,293 |
|
|
| 1,104 |
|
|
| 1,203 |
|
|
| 1,150 |
|
|
| 1,051 |
|
Total other expenses |
|
| 7,143 |
|
|
| 6,008 |
|
|
| 7,143 |
|
|
| 6,703 |
|
|
| 6,489 |
|
|
| 6,177 |
|
|
| 6,008 |
|
INCOME BEFORE INCOME TAXES |
|
| 4,221 |
|
|
| 3,941 |
|
|
| 4,221 |
|
|
| 4,304 |
|
|
| 4,758 |
|
|
| 4,299 |
|
|
| 3,941 |
|
Income tax expense |
|
| 751 |
|
|
| 694 |
|
|
| 751 |
|
|
| 742 |
|
|
| 1,049 |
|
|
| 868 |
|
|
| 694 |
|
NET INCOME |
| $ | 3,470 |
|
| $ | 3,247 |
|
| $ | 3,470 |
|
| $ | 3,562 |
|
| $ | 3,709 |
|
| $ | 3,431 |
|
| $ | 3,247 |
|
Net income per common share, basic and diluted |
| $ | 0.42 |
|
| $ | 0.39 |
|
| $ | 0.42 |
|
| $ | 0.43 |
|
| $ | 0.45 |
|
| $ | 0.42 |
|
| $ | 0.39 |
|
Weighted average number of shares, basic and diluted |
|
| 8,287,317 |
|
|
| 8,242,873 |
|
|
| 8,287,317 |
|
|
| 8,260,259 |
|
|
| 8,251,672 |
|
|
| 8,250,210 |
|
|
| 8,242,873 |
|
UNAUDITED LOAN, DEPOSIT AND BORROWING DETAIL
(Unaudited)
(In thousands)
|
| March 31, 2020 |
|
| December 31, 2019 |
|
| March 31, 2019 |
|
| Percentage Change |
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|
| $ Amount |
|
| % of Total |
|
| $ Amount |
|
| % of Total |
|
| $ Amount |
|
| % of Total |
|
| Last 3 Mos |
|
| Last 12 Mos |
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LOANS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land development loans |
| $ | 286,756 |
|
|
| 26.7 | % |
| $ | 272,620 |
|
|
| 26.2 | % |
| $ | 192,494 |
|
|
| 20.2 | % |
|
| 5.2 | % |
|
| 49.0 | % |
Residential real estate loans |
|
| 149,173 |
|
|
| 13.9 | % |
|
| 150,848 |
|
|
| 14.5 | % |
|
| 151,884 |
|
|
| 15.9 | % |
|
| -1.1 | % |
|
| -1.8 | % |
Commercial real estate loans |
|
| 449,786 |
|
|
| 42.0 | % |
|
| 421,870 |
|
|
| 40.5 | % |
|
| 409,522 |
|
|
| 42.9 | % |
|
| 6.6 | % |
|
| 9.8 | % |
Commercial industrial loans |
|
| 118,258 |
|
|
| 11.0 | % |
|
| 121,225 |
|
|
| 11.6 | % |
|
| 105,391 |
|
|
| 11.0 | % |
|
| -2.4 | % |
|
| 12.2 | % |
Consumer loans |
|
| 68,159 |
|
|
| 6.4 | % |
|
| 75,583 |
|
|
| 7.2 | % |
|
| 95,299 |
|
|
| 10.0 | % |
|
| -9.8 | % |
|
| -28.5 | % |
Total Gross Loans |
| $ | 1,072,132 |
|
|
| 100.0 | % |
| $ | 1,042,146 |
|
|
| 100.0 | % |
| $ | 954,590 |
|
|
| 100.0 | % |
|
| 2.9 | % |
|
| 12.3 | % |
Less: Allowance for loan losses |
|
| (9,898 | ) |
|
|
|
|
|
| (9,584 | ) |
|
|
|
|
|
| (9,189 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
Net deferred loan fees |
|
| (2,606 | ) |
|
|
|
|
|
| (2,137 | ) |
|
|
|
|
|
| (1,666 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
Net Loans |
| $ | 1,059,628 |
|
|
|
|
|
| $ | 1,030,425 |
|
|
|
|
|
| $ | 943,735 |
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSITS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing demand deposits |
| $ | 240,979 |
|
|
| 21.1 | % |
| $ | 252,707 |
|
|
| 23.6 | % |
| $ | 193,744 |
|
|
| 20.0 | % |
|
| -4.6 | % |
|
| 24.4 | % |
Interest-bearing demand deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
| 16,846 |
|
|
| 1.5 | % |
|
| 53,707 |
|
|
| 5.0 | % |
|
| 59,639 |
|
|
| 6.2 | % |
|
| -68.6 | % |
|
| -71.8 | % |
Savings and NOW deposits |
|
| 60,454 |
|
|
| 5.3 | % |
|
| 63,015 |
|
|
| 5.9 | % |
|
| 61,537 |
|
|
| 6.4 | % |
|
| -4.1 | % |
|
| -1.8 | % |
Money market accounts |
|
| 265,443 |
|
|
| 23.2 | % |
|
| 141,337 |
|
|
| 13.1 | % |
|
| 147,655 |
|
|
| 15.3 | % |
|
| 87.8 | % |
|
| 79.8 | % |
Certificates of deposit $250,000 or more |
|
| 213,409 |
|
|
| 18.7 | % |
|
| 217,200 |
|
|
| 20.3 | % |
|
| 124,921 |
|
|
| 12.9 | % |
|
| -1.7 | % |
|
| 70.8 | % |
Certificates of deposit less than $250,000 |
|
| 346,080 |
|
|
| 30.2 | % |
|
| 343,657 |
|
|
| 32.1 | % |
|
| 379,150 |
|
|
| 39.2 | % |
|
| 0.7 | % |
|
| -8.7 | % |
Total Deposits |
| $ | 1,143,211 |
|
|
| 100.0 | % |
| $ | 1,071,623 |
|
|
| 100.0 | % |
| $ | 966,646 |
|
|
| 100.0 | % |
|
| 6.7 | % |
|
| 18.3 | % |
BORROWINGS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home Loan Bank advances |
|
| 10,000 |
|
|
| 40.3 | % |
|
| 40,000 |
|
|
| 73.0 | % |
|
| 30,000 |
|
|
| 67.0 | % |
|
| -75.0 | % |
|
| -66.7 | % |
Subordinated debt |
|
| 14,812 |
|
|
| 59.7 | % |
|
| 14,805 |
|
|
| 27.0 | % |
|
| 14,783 |
|
|
| 33.0 | % |
|
| 0.0 | % |
|
| 0.2 | % |
Total Borrowings |
| $ | 24,812 |
|
|
| 100.0 | % |
| $ | 54,805 |
|
|
| 100.0 | % |
| $ | 44,783 |
|
|
| 100.0 | % |
|
| -54.7 | % |
|
| -44.6 | % |
Total Deposits and Borrowings |
| $ | 1,168,023 |
|
|
|
|
|
| $ | 1,126,428 |
|
|
|
|
|
| $ | 1,011,429 |
|
|
|
|
|
|
| 3.7 | % |
|
| 15.5 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core customer funding sources (1) |
| $ | 785,661 |
|
|
| 67.2 | % |
| $ | 654,213 |
|
|
| 58.1 | % |
| $ | 566,398 |
|
|
| 56.0 | % |
|
| 20.1 | % |
|
| 38.7 | % |
Brokered and listing service sources (2) |
|
| 357,550 |
|
|
| 30.6 | % |
|
| 417,410 |
|
|
| 37.1 | % |
|
| 400,248 |
|
|
| 39.6 | % |
|
| -14.3 | % |
|
| -10.7 | % |
Federal Home Loan Bank advances |
|
| 10,000 |
|
|
| 0.9 | % |
|
| 40,000 |
|
|
| 3.6 | % |
|
| 30,000 |
|
|
| 3.0 | % |
|
| -75.0 | % |
|
| -66.7 | % |
Subordinated debt (3) |
|
| 14,812 |
|
|
| 1.3 | % |
|
| 14,805 |
|
|
| 1.2 | % |
|
| 14,783 |
|
|
| 1.4 | % |
|
| 0.0 | % |
|
| 0.2 | % |
Total Funding Sources |
| $ | 1,168,023 |
|
|
| 100.0 | % |
| $ | 1,126,428 |
|
|
| 100.0 | % |
| $ | 1,011,429 |
|
|
| 100.0 | % |
|
| 3.7 | % |
|
| 15.5 | % |
(1) | Includes ICS, CDARS, and reciprocal deposits maintained by customers, which represent sweep accounts tied to customer operating accounts. |
(2) | Consists of certificates of deposit (CD) through multiple listing services and multiple brokered deposit services, as well as ICS and CDARS one-way certificates of deposit and regional money market accounts. |
(3) | Subordinated debt obligation qualifies as Tier 2 capital at the holding company and Tier 1 capital at the Bank. |
UNAUDITED AVERAGE BALANCE SHEETS, INTEREST AND RATES
(Unaudited)
(In thousands)
|
| For the three months ended March 31, 2020 |
|
| For the three months ended March 31, 2019 |
| ||||||||||||||||||
|
| Average Balance |
|
| Interest Income/ Expense |
|
| Average Yields/ Rate (annualized) |
|
| Average Balance |
|
| Interest Income/ Expense |
|
| Average Yields/ Rate (annualized) |
| ||||||
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1) |
| $ | 1,058,738 |
|
| $ | 14,220 |
|
|
| 5.37 | % |
| $ | 936,401 |
|
| $ | 12,916 |
|
|
| 5.52 | % |
Investment securities |
|
| 73,838 |
|
|
| 501 |
|
|
| 2.71 | % |
|
| 68,550 |
|
|
| 556 |
|
|
| 3.24 | % |
Federal funds and interest-bearing deposits |
|
| 136,314 |
|
|
| 395 |
|
|
| 1.16 | % |
|
| 64,944 |
|
|
| 345 |
|
|
| 2.12 | % |
Total interest earning assets |
| $ | 1,268,890 |
|
| $ | 15,116 |
|
|
| 4.77 | % |
| $ | 1,069,895 |
|
| $ | 13,817 |
|
|
| 5.17 | % |
Other assets |
|
| 59,363 |
|
|
|
|
|
|
|
|
|
|
| 36,788 |
|
|
|
|
|
|
|
|
|
Total assets |
| $ | 1,328,253 |
|
|
|
|
|
|
|
|
|
| $ | 1,106,683 |
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
| $ | 33,558 |
|
| $ | 117 |
|
|
| 1.39 | % |
| $ | 56,701 |
|
| $ | 245 |
|
|
| 1.73 | % |
Money market deposit accounts |
|
| 230,158 |
|
|
| 778 |
|
|
| 1.35 | % |
|
| 143,825 |
|
|
| 763 |
|
|
| 2.12 | % |
Savings and NOW deposits |
|
| 62,699 |
|
|
| 64 |
|
|
| 0.41 | % |
|
| 58,616 |
|
|
| 73 |
|
|
| 0.50 | % |
Time deposits |
|
| 567,112 |
|
|
| 3,566 |
|
|
| 2.52 | % |
|
| 468,009 |
|
|
| 2,931 |
|
|
| 2.51 | % |
Total interest-bearing deposits |
| $ | 893,527 |
|
| $ | 4,525 |
|
|
| 2.03 | % |
| $ | 727,151 |
|
| $ | 4,012 |
|
|
| 2.21 | % |
Federal funds and repos purchased |
|
| — |
|
|
| — |
|
|
| — |
|
| $ | 139 |
|
| $ | 1 |
|
|
| 2.88 | % |
Subordinated debt |
|
| 14,809 |
|
|
| 241 |
|
|
| 6.51 | % |
|
| 14,780 |
|
|
| 238 |
|
|
| 6.44 | % |
FHLB borrowings |
|
| 10,330 |
|
|
| 50 |
|
|
| 1.94 | % |
|
| 34,111 |
|
|
| 218 |
|
|
| 2.56 | % |
Total interest-bearing liabilities |
| $ | 918,666 |
|
| $ | 4,816 |
|
|
| 2.10 | % |
| $ | 776,181 |
|
| $ | 4,469 |
|
|
| 2.30 | % |
Demand deposits and other liabilities |
|
| 270,422 |
|
|
|
|
|
|
|
|
|
|
| 207,180 |
|
|
|
|
|
|
|
|
|
Total liabilities |
| $ | 1,189,088 |
|
|
|
|
|
|
|
|
|
| $ | 983,361 |
|
|
|
|
|
|
|
|
|
Stockholders’ Equity |
|
| 139,165 |
|
|
|
|
|
|
|
|
|
|
| 123,322 |
|
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders’ Equity |
| $ | 1,328,253 |
|
|
|
|
|
|
|
|
|
| $ | 1,106,683 |
|
|
|
|
|
|
|
|
|
Interest Rate Spread |
|
|
|
|
|
|
|
|
|
| 2.67 | % |
|
|
|
|
|
|
|
|
|
| 2.87 | % |
Net Interest Income and Margin |
|
|
|
|
| $ | 10,300 |
|
|
| 3.25 | % |
|
|
|
|
| $ | 9,348 |
|
|
| 3.50 | % |
(1) | Includes loans classified as non-accrual. |
UNAUDITED SUMMARY FINANCIAL DATA
(Unaudited)
(Dollars in thousands except per share data)
|
| At or For the Three Months Ended |
| |||||
|
| March 31, |
| |||||
|
| 2020 |
|
| 2019 |
| ||
Per share Data and Shares Outstanding |
|
|
|
|
|
|
|
|
Earnings per share (basic and diluted) |
| $ | 0.42 |
|
| $ | 0.39 |
|
Tangible book value per share |
| $ | 16.98 |
|
| $ | 15.15 |
|
Weighted average common shares (basic and diluted) |
|
| 8,287,317 |
|
|
| 8,242,873 |
|
Common shares outstanding at end of period |
|
| 8,260,231 |
|
|
| 8,249,759 |
|
Performance Ratios |
|
|
|
|
|
|
|
|
Return on average assets (annualized) |
|
| 1.04 | % |
|
| 1.17 | % |
Return on average equity (annualized) |
|
| 9.97 | % |
|
| 10.53 | % |
Yield on earning assets (annualized) |
|
| 4.77 | % |
|
| 5.17 | % |
Cost of interest bearing liabilities (annualized) |
|
| 2.10 | % |
|
| 2.30 | % |
Net interest spread |
|
| 2.67 | % |
|
| 2.87 | % |
Net interest margin (annualized) |
|
| 3.25 | % |
|
| 3.50 | % |
Noninterest income as a percentage of average assets (annualized) |
|
| 0.43 | % |
|
| 0.33 | % |
Noninterest expense to average assets (annualized) |
|
| 2.15 | % |
|
| 2.17 | % |
Efficiency ratio |
|
| 60.98 | % |
|
| 58.48 | % |
Asset Quality |
|
|
|
|
|
|
|
|
Loans 30-89 days past due to total gross loans |
|
| 0.19 | % |
|
| 0.01 | % |
Loans 90 days past due to total gross loans |
|
| 0.01 | % |
|
| 0.00 | % |
Non-accrual loans to total gross loans |
|
| 0.01 | % |
|
| 0.20 | % |
Other real estate owned |
| $ | 1,207 |
|
| $ | — |
|
Non-performing assets |
| $ | 1,265 |
|
| $ | 1,973 |
|
Non-performing assets to total assets |
|
| 0.10 | % |
|
| 0.17 | % |
Allowance for loan losses to total gross loans |
|
| 0.93 | % |
|
| 0.96 | % |
Allowance for loan losses to non-performing assets |
|
| 7.82 |
|
|
| 4.66 |
|
Net loan charge-offs (recoveries) |
| $ | 36 |
|
| $ | (33 | ) |
Net charge-offs to average loans (annualized) |
|
| 0.01 | % |
|
| 0.00 | % |
Troubled debt restructurings (total) |
|
|
|
|
|
|
|
|
Performing in accordance with modified terms |
| $ | 1,477 |
|
| $ | 1,502 |
|
Not performing in accordance with modified terms |
| $ | — |
|
| $ | 1,939 |
|
Regulatory Capital Ratios (Bank only) (1) |
|
|
|
|
|
|
|
|
Total risk-based capital ratio |
|
| 12.44 | % |
|
| 13.45 | % |
Tier 1 risk-based capital ratio |
|
| 11.68 | % |
|
| 12.61 | % |
Leverage ratio |
|
| 11.45 | % |
|
| 12.38 | % |
Common equity tier 1 ratio |
|
| 11.68 | % |
|
| 12.61 | % |
Other information |
|
|
|
|
|
|
|
|
Closing stock price |
| $ | 16.76 |
|
| $ | 21.60 |
|
Tangible equity / tangible assets |
|
| 10.55 | % |
|
| 10.91 | % |
Average tangible equity / average tangible assets |
|
| 10.48 | % |
|
| 11.14 | % |
Number of full time equivalent employees |
|
| 125 |
|
|
| 113 |
|
# Full service branch offices |
|
| 7 |
|
|
| 6 |
|
(1) | Regulatory capital ratios as of March 31, 2020 are preliminary. |