Exhibit 99.1
FFBW, Inc. Announces June 30, 2019 Financial Results
Quarterly Earnings Continue Double-Digit Growth
Brookfield, WI, July 25, 2019 – FFBW, Inc. (Nasdaq: FFBW) (the “Company”), the parent company of First Federal Bank of Wisconsin (the “Bank”), a federally chartered stock savings bank offering full-service commercial banking, retail banking and residential lending, today announced unaudited financial results for the three and six months ended June 30, 2019. The June 30, 2019 results showed significant period-over-period earnings growth, continued strong asset quality, and continued loan portfolio realignment in accordance with strategy. For the quarter ended June 30, 2019, net income was $388,000, or $0.06 per share, compared with net income of $353,000, or $0.06 per share, for the same respective period last year.
“Core earnings continue to improve nicely as we further develop our community bank model serving the commercial and consumer banking needs, as well as the residential lending needs of our customers,” stated Edward H. Schaefer, President and CEO of First Federal Bank of Wisconsin.
Second Quarter 2019 Highlights
| | • | Continued earnings growth. Quarterly earnings improved 10% to $388,000 in the second quarter of 2019 from $353,000 in the second quarter of 2018. Excluding prior year one-time adjustments (1), quarterly earnings improved more than 55% while year-to-date earnings grew 70%. |
| | • | Continued strong asset quality. Nonperforming assets increased slightly to $1.1 million at June 30, 2019 from $968,000 as of June 30, 2018. Although the nonperforming assets increased slightly, all but one loan is contractually current on payments. |
| | • | Continued balance sheet realignment. Although total loans balances remain steady at June 30, 2019 compared to June 30, 2018, the composition of the portfolio is further diversifying as the Company is executing its strategy as a community bank concentrating on commercial and consumer banking in addition to residential lending. Commercial loans increased $18.2 million, or 23%, while residential real estate and consumer loans decreased by $17.8 million, or 15%, resulting in a shift from 40% commercial loans to 49% of the loan portfolio in the last twelve months. |
Income Statement and Balance Sheet Overview
Total interest and dividend income increased $110,000, or 4.1%, to $2.8 million for the second quarter of 2019 compared to $2.7 million for the same quarter in the prior year. Excluding prior year one-time adjustments (1), total interest and dividend income increased $227,000, or 8.4%. Average interest-earning assets decreased $207,000, or 0.08%, to $245.9 million for the quarter ended June 30, 2019 compared to $246.1 million for the quarter ended June 30, 2018, and the weighted average yield on interest-earning assets increased 18 basis points for the same period. Excluding the prior year one-time adjustments (1), the weighted average yield increased 37 basis points quarter to quarter.
Total interest expense increased $266,000, or 58.1%, to $724,000 for the quarter ended June 30, 2019 compared to $458,000 for the quarter ended June 30, 2018. Average interest-bearing liabilities decreased $1.5 million, or 0.8%, to $177.6 million for the quarter ended June 30, 2019 from $179.1 million for the quarter ended June 30, 2018. The rate paid on interest-bearing liabilities increased 61 basis points to 1.63% for the quarter ended June 30, 2019 compared to 1.02% for the quarter ended June 30, 2018. The increase in average cost of funds was primarily the result of rising interest rates and competition within our market.
Net interest margin was 3.38% for the three months ended June 30, 2019, compared to the adjusted 3.41% for the three months ended June 30, 2018, a decrease of three basis points after backing out the nonaccrual interest in the prior year period(1).
The loan loss provision was $85,000 for the quarter ended June 30, 2019 compared to $189,000 the quarter ended June 30, 2018. At June 30, 2019, our allowance for loan loss was $2.3 million, or 1.15%, of total loans. Management believes the allowance is adequate for future probable losses.
Noninterest income increased $110,000, or 68.3% to $271,000 for the three months ended June 30, 2019 compared to $161,000 for the three months ended June 30, 2018. The increase was due primarily to increased gains from sales of loans to the secondary market.
Noninterest expense decreased $19,000 to $1.8 million for the three months ended June 30, 2019 compared to $1.8 million for the three months ended June 30, 2018. This was primarily due to a decrease of $108,000, or 9.5%, in salaries and employee benefits due to staffing efficiencies and vacancies, partially offset by increases in technology and professional fees.
Total assets decreased $7.6 million to $258.3 million at June 30, 2019 from $265.9 million at June 30, 2018. This decrease was primarily due to the decrease in available for sale securities of $11.7 million, partially offset by increases in cash and cash equivalents of $3.0 million and in loans held for sale of $2.0 million.
Nonaccrual loans increased to $1.1 million, or 0.57% of total loans, at June 30, 2019, from $968,000, or 0.50% of total loans, at June 30, 2018. All but one nonaccrual loan is contractually current. Non-performing assets increased to $1.2 million, or 0.46% of total assets, at June 30, 2019 compared to $968,000, or 0.36% of total assets, at June 30, 2018.
The following table presents the estimated regulatory capital ratios for the Company, the Bank, and the minimum requirements for the Bank at June 30, 2019.
At June 30, 2019 | | Company | | | Bank | | | Minimum Requirement For Capital Adequacy Purposes | | | Minimum Requirement to Be Well Capitalized Under Prompt Corrective Action Provisions | |
Tier 1 leverage ratio | | | 23.2 | % | | | 19.0 | % | | | 4.0 | % | | | 5.0 | % |
Common equity Tier 1 capital ratio | | | 29.8 | % | | | 24.5 | % | | | 4.5 | % | | | 6.5 | % |
Tier 1 capital ratio | | | 29.8 | % | | | 24.5 | % | | | 6.0 | % | | | 8.0 | % |
Total capital ratio | | | 31.0 | % | | | 25.6 | % | | | 8.0 | % | | | 10.0 | % |
(1) | In the second quarter of 2018, the Company received $136,000 of additional interest from loans that had paid off that were previously on nonaccrual status, increasing the weighted yield for the quarter by 29 basis points. |
About the Company
FFBW, Inc. is the holding company for First Federal Bank of Wisconsin, a wholly owned subsidiary. The Company’s stock trades on the NASDAQ Capital Market under the symbol “FFBW.” First Federal Bank of Wisconsin is a full-service federally chartered stock savings bank based in Waukesha, Wisconsin, servicing customers in Waukesha and Milwaukee Counties in Wisconsin through four branch locations.
Cautionary Statement Regarding Forward-Looking Statements
This release contains forward-looking statements, which can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “plan,” “seek,” “expect” and words of similar meaning. These forward-looking statements include but are not limited to: statements of our goals, intentions and expectations; statements regarding our business plans, prospects, growth and operating strategies; statements regarding the quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits. These forward-looking statements are based on current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: general economic conditions, either nationally or in our market areas, that are worse than expected; changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses; our ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in our market area; our ability to implement and change our business strategies; competition among depository and other financial institutions; inflation and changes in the interest rate environment that reduce our margins and yields, our mortgage banking revenues, the fair value of financial instruments or our level of loan originations, or increase the level of defaults, losses and prepayments on loans we have made and make; adverse changes in the securities or secondary mortgage markets; changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements, including as a result of Basel III; the impact of the Dodd-Frank Act and the implementing regulations; changes in the quality or composition of our loan or investment portfolios; technological changes that may be more difficult or expensive than expected; the inability of third-party providers to perform as expected; our ability to manage market risk, credit risk and operational risk in the current economic environment; our ability to enter new markets successfully and capitalize on growth opportunities; our ability to successfully integrate into our operations any assets, liabilities, customers, systems and management personnel we may acquire and our ability to realize related revenue synergies and cost savings within expected time frames, and any goodwill charges related thereto; changes in consumer spending, borrowing and savings habits; changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board; our ability to retain key employees; our compensation expense associated with equity allocated or awarded to our employees; and changes in the financial condition, results of operations or future prospects of issuers of securities that we own. Because of these and a wide variety of other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements.
Contact: Nikola B. Schaumberg, CFO
(262) 542-4448
FFBW, Inc.
Balance Sheets
June 30, 2019 (Unaudited) and December 31, 2018
(In thousands, except share data)
| | | June 30, | | | December 31, | |
Assets | | 2019 | | | 2018 | |
Cash and due from banks | | $ | 4,351 | | | $ | 1,746 | |
Fed funds sold | | | 1,046 | | | | 2,742 | |
Cash and cash equivalents | | | 5,397 | | | | 4,488 | |
Available for sale securities, stated at fair value | | | 43,478 | | | | 43,751 | |
Loans held for sale | | | 1,951 | | | | 679 | |
Loans, net of allowance for loan and lease losses of $2,252 and $2,118, respectively | | | 193,001 | | | | 198,694 | |
Premises and equipment, net | | | 4,888 | | | | 5,057 | |
Foreclosed assets | | | 84 | | | | 69 | |
FHLB stock, at cost | | | 609 | | | | 739 | |
Accrued interest receivable | | | 777 | | | | 768 | |
Cash value of life insurance | | | 7,105 | | | | 7,007 | |
Other assets | | | 1,034 | | | | 1,474 | |
TOTAL ASSETS | | $ | 258,324 | | | $ | 262,726 | |
| | | | | | | | | |
Liabilities and Equity | | | | | | | | |
| | | | | | | | | |
Deposits | | $ | 177,553 | | | $ | 183,205 | |
Advance payments by borrowers for taxes and insurance | | | 771 | | | | 55 | |
FHLB advances | | | 15,750 | | | | 17,750 | |
Accrued interest payable | | | 620 | | | | 70 | |
Other liabilities | | | 2,446 | | | | 1,284 | |
Total liabilities | | $ | 197,140 | | | $ | 202,364 | |
Preferred stock ($0.01 par value, 1,000,000 authorized, no shares issued or outstanding as of June 30, 2019 and December 31, 2018, respectively) | | $ | - | | | $ | - | |
Common stock ($0.01 par value, 19,000,000 authorized, 6,706,742 issued and outstanding as of June 30, 2019 and December 31, 2018, respectively) | | | 67 | | | | 67 | |
Additional paid in capital | | | 28,489 | | | | 28,326 | |
Unallocated common stock of Employee Stock Ownership Plan ("ESOP") (236,823 and 243,303 shares at June 30, 2019 and December 31, 2018, respectively) | | | (2,368 | ) | | | (2,433 | ) |
Retained earnings | | | 35,632 | | | | 34,995 | |
Accumulated other comprehensive income (loss), net of income taxes | | | 235 | | | | (593 | ) |
Less common stock repurchased, 82,055 and 0 shares at cost, at June 30, 2019 and December 31, 2018, respectively | | | (871 | ) | | | - | |
Total equity | | $ | 61,184 | | | $ | 60,362 | |
TOTAL LIABILITIES AND EQUITY | | $ | 258,324 | | | $ | 262,726 | |
FFBW, Inc.
Statements of Income
Three and Six Months Ended June 30, 2019 and 2018 (Unaudited)
(In thousands, except share data)
| | | Three months ended June 30, | | | Six months ended June 30, | |
| | | 2019 | | | 2018 | | | 2019 | | | 2018 | |
Interest and dividend income: | | | | | | | | | | | | | |
Loans, including fees | | $ | 2,497 | | | $ | 2,326 | | | $ | 4,945 | | | $ | 4,294 | |
Securities | | | | | | | | | | | | | | | | |
Taxable | | | 282 | | | | 339 | | | | 557 | | | | 679 | |
Tax-exempt | | | 4 | | | | 14 | | | | 6 | | | | 37 | |
Other | | | 21 | | | | 15 | | | | 46 | | | | 31 | |
Total interest and dividend income | | | 2,804 | | | | 2,694 | | | | 5,554 | | | | 5,041 | |
Interest expense: | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | 633 | | | | 342 | | | | 1,232 | | | | 688 | |
Borrowed funds | | | 91 | | | | 116 | | | | 179 | | | | 169 | |
Total interest expense | | | 724 | | | | 458 | | | | 1,411 | | | | 857 | |
Net interest income | | | 2,080 | | | | 2,236 | | | | 4,143 | | | | 4,184 | |
Provision for loan losses | | | 85 | | | | 189 | | | | 155 | | | | 304 | |
Net interest income after provision for loan losses | | | 1,995 | | | | 2,047 | | | | 3,988 | | | | 3,880 | |
Noninterest income: | | | | | | | | | | | | | | | | |
Service charges and other fees | | | 64 | | | | 51 | | | | 99 | | | | 111 | |
Net gain on sale of loans | | | 127 | | | | 36 | | | | 168 | | | | 75 | |
Net gain (loss) on sale of securities | | | 5 | | | | 1 | | | | (3 | ) | | | 9 | |
Increase in cash surrender value of insurance | | | 51 | | | | 49 | | | | 98 | | | | 95 | |
Other noninterest income | | | 24 | | | | 24 | | | | 49 | | | | 47 | |
Total noninterest income | | | 271 | | | | 161 | | | | 411 | | | | 337 | |
Noninterest expense: | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | 1,031 | | | | 1,139 | | | | 2,128 | | | | 2,196 | |
Occupancy and equipment | | | 242 | | | | 226 | | | | 484 | | | | 459 | |
Data processing | | | 169 | | | | 158 | | | | 344 | | | | 310 | |
Technology | | | 79 | | | | 49 | | | | 157 | | | | 104 | |
Foreclosed assets, net | | | 1 | | | | (9 | ) | | | 2 | | | | 37 | |
Professional fees | | | 104 | | | | 57 | | | | 216 | | | | 175 | |
Other noninterest expense | | | 126 | | | | 151 | | | | 229 | | | | 323 | |
Total noninterest expense | | | 1,752 | | | | 1,771 | | | | 3,560 | | | | 3,604 | |
Income before income taxes | | | 514 | | | | 437 | | | | 839 | | | | 613 | |
Provision for income taxes | | | 126 | | | | 84 | | | | 202 | | | | 137 | |
Net income | | $ | 388 | | | $ | 353 | | | $ | 637 | | | $ | 476 | |
| | | | | | | | | | | | | | | | | |
Earnings per share | | | | | | | | | | | | | | | | |
Basic | | $ | 0.06 | | | $ | 0.06 | | | $ | 0.10 | | | $ | 0.07 | |
Diluted | | $ | 0.06 | | | $ | 0.06 | | | $ | 0.10 | | | $ | 0.07 | |
FFBW, Inc.
Statements of Income
(In thousands, except share data)
| | | For the Quarter Ended | |
| | | June 30, 2019 | | | March 31, 2019 | | | December 31, 2018 | | | September 30, 2018 | | | June 30, 2018 | |
Total interest and dividend income | | $ | 2,804 | | | $ | 2,750 | | | $ | 2,817 | | | $ | 2,738 | | | $ | 2,700 | |
Total interest expense | | | 724 | | | | 687 | | | | 645 | | | | 607 | | | | 458 | |
Net interest income | | | 2,080 | | | | 2,063 | | | | 2,172 | | | | 2,131 | | | | 2,242 | |
Provision for loan losses | | | 85 | | | | 70 | | | | 98 | | | | 111 | | | | 189 | |
Net interest income after provision for loan losses | | | 1,995 | | | | 1,993 | | | | 2,074 | | | | 2,020 | | | | 2,053 | |
Total noninterest income | | | 271 | | | | 140 | | | | 39 | | | | 250 | | | | 200 | |
Total noninterest expense | | | 1,752 | | | | 1,808 | | | | 1,810 | | | | 1,810 | | | | 1,816 | |
Income before income taxes | | | 514 | | | | 325 | | | | 303 | | | | 460 | | | | 437 | |
Provision for income taxes | | | 126 | | | | 76 | | | | 70 | | | | 111 | | | | 84 | |
Net income | | $ | 388 | | | $ | 249 | | | $ | 233 | | | $ | 349 | | | $ | 353 | |
| | | | | | | | | | | | | | | | | | | | | |
Earnings per share | | | | | | | | | | | | | | | | | |
Basis | | $ | 0.06 | | | $ | 0.04 | | | $ | 0.04 | | | $ | 0.05 | | | $ | 0.06 | |
Diluted | | $ | 0.06 | | | $ | 0.04 | | | $ | 0.04 | | | $ | 0.05 | | | $ | 0.06 | |
FFBW, Inc.
Non-performing Assets
(In thousands)
| | | June 30, 2019 and Six Months Then Ended | | | December 31, 2018 and Twelve Months Then Ended | | | December 31, 2017 and Twelve Months Then Ended | |
| | | | | | | | | | | | | |
Nonperforming assets: | | | | | | | | | |
Nonaccrual loans | | $ | 1,117 | | | $ | 720 | | | $ | 1,243 | |
Accruing loans past due 90 days or more | | | - | | | | - | | | | - | |
Total nonperforming loans ("NPLs") | | | 1,117 | | | | 720 | | | | 1,243 | |
Foreclosed assets | | | 84 | | | | 69 | | | | 619 | |
Total nonperforming assets ("NPAs") | | $ | 1,201 | | | $ | 789 | | | $ | 1,862 | |
Troubled Debt Restructurings ("TDRs") | | $ | 1,400 | | | $ | 1,201 | | | $ | 1,630 | |
Nonaccrual TDRs | | $ | 1,100 | | | $ | 700 | | | $ | 969 | |
Average outstanding loan balance | | $ | 200,246 | | | $ | 189,233 | | | $ | 170,577 | |
Loans, end of period | | $ | 195,405 | | | $ | 200,898 | | | $ | 173,229 | |
ALLL, at beginning of period | | $ | 2,118 | | | $ | 1,800 | | | $ | 1,478 | |
Loans charged off: | | | | | | | | | |
Commercial | | | - | | | | (24 | ) | | | - | |
Residential real estate and consumer | | | (21 | ) | | | (172 | ) | | | (133 | ) |
Total loans charged off | | | (21 | ) | | | (196 | ) | | | (133 | ) |
Recoveries of loans previously charged off: | |
Commercial | | | - | | | | - | | | | - | |
Residential real estate and consumer | | | - | | | | 1 | | | | 36 | |
Total recoveries of loans previously charged off | | | - | | | | 1 | | | | 36 | |
Net loans charged off ("NCOs'") | | | (21 | ) | | | (195 | ) | | | (97 | ) |
Additions to ALLL via provision for loan losses charged to operations | | | 155 | | | | 513 | | | | 419 | |
ALLL, at end of period | | $ | 2,252 | | | $ | 2,118 | | | $ | 1,800 | |
Ratios: | | | | | | | | | | | | |
ALLL to NCOs (annualized) | | | 5440.34 | % | | | 1086.15 | % | | | 1855.67 | % |
NCOs (annualized) to average loans | | | 0.02 | % | | | 0.10 | % | | | 0.06 | % |
ALLL to total loans | | | 1.15 | % | | | 1.05 | % | | | 1.04 | % |
NPL to total loans | | | 0.57 | % | | | 0.36 | % | | | 0.72 | % |
NPAs to total assets | | | 0.46 | % | | | 0.30 | % | | | 0.73 | % |
Total Assets | | $ | 258,324 | | | $ | 262,726 | | | $ | 256,481 | |
FFBW, Inc.
Yield and Cost
| | | For the Three Months Ended June 30, | |
| | | 2019 | | | 2018 | |
| | | Average Outstanding Balance | | | Interest | | | Yield/ Rate | | | Average Outstanding Balance | | | Interest | | | Yield/ Rate | |
| | | (in thousands) | | | | | | | (in thousands) | | | | | |
Interest-earning assets: | | | | | | | | | | | | | | | | | |
Loans | | $ | 199,235 | | | $ | 2,497 | | | | 5.01 | % | | $ | 185,665 | | | $ | 2,326 | | | | 5.01 | % |
Available for sale securities | | | 43,501 | | | | 286 | | | | 2.63 | % | | | 57,490 | | | | 353 | | | | 2.46 | % |
Interest-bearing deposits | | | 2,486 | | | | 13 | | | | 2.09 | % | | | 2,071 | | | | 3 | | | | 0.58 | % |
FHLB stock | | | 638 | | | | 8 | | | | 5.02 | % | | | 841 | | | | 12 | | | | 5.71 | % |
Total interest-earning assets | | | 245,860 | | | | 2,804 | | | | 4.56 | % | | | 246,067 | | | | 2,694 | | | | 4.38 | % |
Noninterest-earning assets | | | 15,891 | | | | | | | | | | | | 15,901 | | | | | | | | | |
Allowance for loan losses | | | (2,219 | ) | | | | | | | | | | | (1,855 | ) | | | | | | | | |
Total assets | | $ | 259,532 | | | | | | | | | | | $ | 260,113 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | |
Demand accounts | | $ | 8,662 | | | | 26 | | | | 1.20 | % | | $ | 4,817 | | | | 4 | | | | 0.33 | % |
Money market accounts | | | 40,373 | | | | 132 | | | | 1.31 | % | | | 52,327 | | | | 103 | | | | 0.79 | % |
Savings accounts | | | 13,755 | | | | 4 | | | | 0.12 | % | | | 15,196 | | | | 7 | | | | 0.18 | % |
Health savings accounts | | | 11,199 | | | | 8 | | | | 0.29 | % | | | 11,642 | | | | 6 | | | | 0.21 | % |
Certificates of deposit | | | 87,112 | | | | 463 | | | | 2.13 | % | | | 69,890 | | | | 222 | | | | 1.27 | % |
Total interest-bearing deposits | | | 161,101 | | | | 633 | | | | 1.57 | % | | | 153,872 | | | | 342 | | | | 0.89 | % |
Borrowings | | | 16,492 | | | | 91 | | | | 2.21 | % | | | 25,197 | | | | 116 | | | | 1.84 | % |
Total interest-bearing liabilities | | | 177,593 | | | | 724 | | | | 1.63 | % | | | 179,069 | | | | 458 | | | | 1.02 | % |
Noninterest-bearing deposits | | | 18,790 | | | | | | | | | | | | 20,783 | | | | | | | | | |
Other non-interest bearing liabilities | | | 2,188 | | | | | | | | | | | | 1,123 | | | | | | | | | |
Total liabilities | | | 198,571 | | | | | | | | | | | | 200,975 | | | | | | | | | |
Equity | | | 60,961 | | | | | | | | | | | | 59,138 | | | | | | | | | |
Total liabilities and equity | | $ | 259,532 | | | | | | | | | | | $ | 260,113 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income | | | | 2,080 | | | | | | | | | | | | 2,236 | | | | | |
Net interest rate spread(1) | | | | 2.93 | % | | | | | | | | | | | 3.36 | % |
Net interest-earning assets(2) | | | 68,267 | | | | | | | | | | | | 66,998 | | | | | | | | | |
Net interest margin(3) | | | | | | | | 3.38 | % | | | | | | | | | | | 3.63 | % |
Average of interest-earning assets to interest-bearing liabilities | | | 138 | % | | | | | | | | | | | 137 | % | | | | | | | | |
(1) | Interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. |
(2) | Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities. |
(3) | Net interest margin represents net interest income divided by total interest-earning assets. |
| | | For the Six Months Ended June 30, | |
| | | 2019 | | | 2018 | |
| | | Average Outstanding Balance | | | Interest | | | Yield/ Rate | | | Average Outstanding Balance | | | Interest | | | Yield/ Rate | |
| | | (in thousands) | | | | | | | (in thousands) | | | | | |
Interest-earning assets: | | | | | | | | | | | | | | | | | |
Loans | | $ | 200,246 | | | $ | 4,945 | | | | 4.94 | % | | $ | 180,390 | | | $ | 4,294 | | | | 4.76 | % |
Available for sale securities | | | 43,579 | | | | 563 | | | | 2.58 | % | | | 58,451 | | | | 716 | | | | 2.45 | % |
Interest-bearing deposits | | | 2,540 | | | | 29 | | | | 2.28 | % | | | 3,293 | | | | 15 | | | | 0.91 | % |
FHLB stock | | | 642 | | | | 17 | | | | 5.30 | % | | | 700 | | | | 16 | | | | 4.57 | % |
Total interest-earning assets | | | 247,007 | | | | 5,554 | | | | 4.50 | % | | | 242,834 | | | | 5,041 | | | | 4.15 | % |
Noninterest-earning assets | | | 16,683 | | | | | | | | | | | | 16,414 | | | | | | | | | |
Allowance for loan losses | | | (2,182 | ) | | | | | | | | | | | (1,835 | ) | | | | | | | | |
Total assets | | $ | 260,885 | | | | | | | | | | | $ | 257,413 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | |
Demand accounts | | $ | 9,168 | | | | 57 | | | | 1.24 | % | | $ | 4,502 | | | | 7 | | | | 0.31 | % |
Money market accounts | | | 40,785 | | | | 243 | | | | 1.19 | % | | | 52,764 | | | | 185 | | | | 0.70 | % |
Savings accounts | | | 14,245 | | | | 9 | | | | 0.13 | % | | | 15,329 | | | | 15 | | | | 0.20 | % |
Health savings accounts | | | 11,284 | | | | 17 | | | | 0.30 | % | | | 11,596 | | | | 13 | | | | 0.22 | % |
Certificates of deposit | | | 87,689 | | | | 906 | | | | 2.07 | % | | | 72,493 | | | | 468 | | | | 1.29 | % |
Total interest-bearing deposits | | | 163,171 | | | | 1,232 | | | | 1.51 | % | | | 156,684 | | | | 688 | | | | 0.88 | % |
Borrowings | | | 16,544 | | | | 179 | | | | 2.16 | % | | | 19,862 | | | | 169 | | | | 1.70 | % |
Total interest-bearing liabilities | | | 179,715 | | | | 1,411 | | | | 1.57 | % | | | 176,546 | | | | 857 | | | | 0.97 | % |
Noninterest-bearing deposits | | | 18,256 | | | | | | | | | | | | 20,538 | | | | | | | | | |
Other non-interest bearing liabilities | | | 1,406 | | | | | | | | | | | | 1,199 | | | | | | | | | |
Total liabilities | | | 200,050 | | | | | | | | | | | | 198,283 | | | | | | | | | |
Equity | | | 60,835 | | | | | | | | | | | | 59,130 | | | | | | | | | |
Total liabilities and equity | | $ | 260,885 | | | | | | | | | | | $ | 257,413 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income | | | | 4,143 | | | | | | | | | | | | 4,184 | | | | | |
Net interest rate spread(1) | | | | 2.93 | % | | | | | | | | | | | 3.18 | % |
Net interest-earning assets(2) | | | 67,292 | | | | | | | | | | | | 66,288 | | | | | | | | | |
Net interest margin(3) | | | | | | | | 3.35 | % | | | | | | | | | | | 3.45 | % |
Average of interest-earning assets to interest-bearing liabilities | | | 137 | % | | | | | | | | | | | 138 | % | | | | | | | | |
(1) | Interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. |
(2) | Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities. |
(3) | Net interest margin represents net interest income divided by total interest-earning assets. |
