Exhibit 99.1
Civista Bancshares, Inc. Announces Strong First Quarter 2019 Earnings
Sandusky, Ohio, May 3, 2019 /PRNewswire/– Civista Bancshares, Inc. (NASDAQ:CIVB) (“Civista”) reported net income available to common shareholders of $9.5 million, or $0.57 per diluted share, for the first quarter of 2019. This compares to net income available to common shareholders of $6.7 million, or $0.55 per diluted share, for the first quarter of 2018.
“We continue to build upon the success of the UCB acquisition and efforts that we put in place during 2018. Our net interest margin has continued to expand, due in large part to the solid core deposit base that the legacy Civista and UCB teams put in place. While our loan balances only grew 2.9% on an annualized basis during the first quarter, the first quarter tends to be a slower quarter for our loan portfolio. Our team continues to put together core earnings growth and very strong asset quality.” said Dennis G. Shaffer, President and CEO of Civista.
Factors Affecting Comparability
Civista acquired United Community Bancorp (“UCB”) in September 2018. The financial position and results of operations of UCB prior to its acquisition date are not included in the Company’s financial results for periods prior to the acquisition date.
Results of Operations:
Net interest income increased $6.9 million, or 47.0%, for the first quarter of 2019 compared to the same period of 2018. Interest income increased $8.7 million, or 54.4%, for the first quarter of 2019. Average earning assets increased $514.6 million, which resulted in $6.3 million of the increase in interest income. Additionally, yields increased 65 basis points which resulted in $2.4 million of the increase in interest income. Accretion income associated with purchased loan portfolios totaled $992 thousand or approximately 22 basis points for the quarter. Interest expense increased $1.7 million, or 148.7 %, for the first quarter of 2019 compared to the same period of 2018. Average interest-bearing liabilities increased $384.0 million, resulting in $701 thousand of the increase in interest expense. Average rates increased 39 basis points, resulting in $1.0 million of the increase in interest expense. The tax equivalent net interest margin increased 40 basis points to 4.45% for the first quarter of 2019, compared to 4.05% for the same period a year ago. Accretion income from the UCB acquisition contributed approximately 22 basis points to the increase in net interest margin.
Average Balance Analysis
(Unaudited - Dollars in thousands)
Three Months Ended March 31, | ||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||
Average balance | Interest | Yield/ rate * | Average balance | Interest | Yield/ rate * | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans | $ | 1,564,208 | $ | 20,963 | 5.44 | % | $ | 1,147,441 | $ | 13,639 | 4.82 | % | ||||||||||||
Taxable securities | 207,600 | 1,748 | 3.43 | % | 140,999 | 986 | 2.83 | % | ||||||||||||||||
Non-taxable securities | 157,619 | 1,351 | 4.49 | % | 101,478 | 878 | 4.53 | % | ||||||||||||||||
Interest-bearing deposits in other banks | 88,096 | 522 | 2.40 | % | 113,025 | 421 | 1.51 | % | ||||||||||||||||
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Total interest-earning assets | $ | 2,017,523 | 24,584 | 5.02 | % | $ | 1,502,943 | 15,924 | 4.37 | % | ||||||||||||||
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Noninterest-earning assets: | ||||||||||||||||||||||||
Cash and due from financial institutions | 92,782 | 90,358 | ||||||||||||||||||||||
Premises and equipment, net | 21,924 | 17,529 | ||||||||||||||||||||||
Accrued interest receivable | 6,534 | 4,445 | ||||||||||||||||||||||
Intangible assets | 86,116 | 28,368 | ||||||||||||||||||||||
Other assets | 20,053 | 11,243 | ||||||||||||||||||||||
Bank owned life insurance | 43,643 | 25,175 | ||||||||||||||||||||||
Less allowance for loan losses | (13,885 | ) | (13,141 | ) | ||||||||||||||||||||
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Total Assets | $ | 2,274,690 | $ | 1,666,920 | ||||||||||||||||||||
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Liabilities and Shareholders’ Equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Demand and savings | $ | 855,666 | $ | 708 | 0.34 | % | $ | 616,213 | $ | 252 | 0.17 | % | ||||||||||||
Time | 270,507 | 1,183 | 1.77 | % | 187,391 | 455 | 0.98 | % | ||||||||||||||||
FHLB | 97,267 | 597 | 2.49 | % | 39,642 | 152 | 1.56 | % | ||||||||||||||||
Subordinated debentures | 29,427 | 372 | 5.13 | % | 29,427 | 288 | 3.97 | % | ||||||||||||||||
Repurchase agreements | 22,197 | 5 | 0.09 | % | 18,398 | 5 | 0.11 | % | ||||||||||||||||
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Total interest-bearing liabilities | $ | 1,275,064 | 2,865 | 0.91 | % | $ | 891,071 | 1,152 | 0.52 | % | ||||||||||||||
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Noninterest-bearing deposits | 680,929 | 576,809 | ||||||||||||||||||||||
Other liabilities | 17,041 | 14,608 | ||||||||||||||||||||||
Shareholders’ equity | 301,656 | 184,432 | ||||||||||||||||||||||
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Total Liabilities and Shareholders’ Equity | $ | 2,274,690 | $ | 1,666,920 | ||||||||||||||||||||
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Net interest income and interest rate spread | $ | 21,719 | 4.11 | % | $ | 14,772 | 3.85 | % | ||||||||||||||||
Net interest margin | 4.45 | % | 4.05 | % |
* - Interest yields are presented on an annualized basis and are calculated using a 21% tax-equivalent adjustment
No provision for loan losses was made during the three month periods ended March 31, 2019 and 2018.
For the first quarter of 2019, noninterest income totaled $6.3 million, an increase of $668 thousand, or 11.9%, compared to the prior year’s first quarter.
Noninterest income | ||||||||
(unaudited - dollars in thousands) | Three months ended March 31, | |||||||
2019 | 2018 | |||||||
Service charges | $ | 1,456 | $ | 1,134 | ||||
Net gain on sale of securities | 4 | — | ||||||
Net gain on equity securities | 2 | 40 | ||||||
Net gain on sale of loans | 331 | 333 | ||||||
ATM/Interchange fees | 906 | 554 | ||||||
Wealth management fees | 847 | 852 | ||||||
Bank owned life insurance | 247 | 142 | ||||||
Tax refund processing fees | 2,200 | 2,200 | ||||||
Other | 291 | 361 | ||||||
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Total noninterest income | $ | 6,284 | $ | 5,616 | ||||
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Service charges increased $322 thousand, or 28.4%, ATM/Interchange fees increased $352 thousand, or 63.5% and bank owned life insurance increased $105 thousand, or 73.9% all primarily due to the Company’s acquisition of UCB during the third quarter of 2018.
For the first quarter of 2019, noninterest expense totaled $16.4 million, an increase of $4.2 million, or 34.8%, compared to the prior year’s first quarter
Noninterest expense | ||||||||
(unaudited - dollars in thousands) | Three months ended March 31, | |||||||
2019 | 2018 | |||||||
Compensation expense | $ | 9,805 | $ | 7,374 | ||||
Net occupancy and equipment | 1,503 | 1,135 | ||||||
Contracted data processing | 419 | 348 | ||||||
Taxes and assessments | 593 | 469 | ||||||
Professional services | 694 | 552 | ||||||
Amortization of intangible assets | 240 | 33 | ||||||
Marketing | 340 | 318 | ||||||
Other | 2,855 | 1,976 | ||||||
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Total noninterest expense | $ | 16,449 | $ | 12,205 | ||||
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Compensation expense increased $2.4 million, or 33.0%, primarily due to the acquisition of UCB as well as normal merit increases during 2018 and an increase in health insurance costs. Net occupancy and equipment expense increased $368 thousand, or 32.4%, taxes and assessments increased $124 thousand, or 26.4%, amortization of intangible assets increased $207 thousand, or 627.3% and other expense increased $879 thousand, or 44.5%, all primarily as a result of the acquisition of UCB.
The efficiency ratio was 58.0% for the three months ended March 31, 2019 compared to 59.2% for the three months ended March 31, 2018. The improvement in the efficiency ratio is due primarily to the increase in net interest income.
Civista’s effective income tax rate for the first quarter 2019 was 16.3% compared to 14.6% in 2018.
Balance Sheet
Total assets increased $138.7 million, or 6.5%, from December 31, 2018 to March 31, 2019, due to a $121.3 million increase in cash, primarily related to the tax refund processing program, as well as a $3.6 million increase in Investment securities and an $11.3 million increase in the loan portfolio.
End of period loan balances (unaudited - dollars in thousands) | ||||||||||||||||
March 31, 2019 | December 31, 2018 | $ Change | % Change | |||||||||||||
Commercial and Agriculture | $ | 179,200 | $ | 177,101 | $ | 2,099 | 1.2 | % | ||||||||
Commercial Real Estate: | ||||||||||||||||
Owner Occupied | 217,030 | 210,121 | 6,909 | 3.3 | % | |||||||||||
Non-owner Occupied | 539,420 | 523,598 | 15,822 | 3.0 | % | |||||||||||
Residential Real Estate | 461,340 | 457,850 | 3,490 | 0.8 | % | |||||||||||
Real Estate Construction | 123,905 | 135,195 | (11,290 | ) | -8.4 | % | ||||||||||
Farm Real Estate | 35,645 | 38,513 | (2,868 | ) | -7.4 | % | ||||||||||
Consumer and Other | 16,653 | 19,563 | (2,910 | ) | -14.9 | % | ||||||||||
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Total Loans | $ | 1,573,193 | $ | 1,561,941 | $ | 11,252 | 0.7 | % | ||||||||
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Loan growth during 2019 totaled $11.3 million with increases in Commercial & Agriculture, Commercial Real Estate – Owner Occupied and Residential Real Estate. Commercial Real Estate – Non-Owner Occupied also increased, driven primarily by two projects that were in Real Estate Construction and converted to permanent financing.
Total deposits increased $185.9 million, or 11.8%, from December 31, 2018 to March 31, 2019.
End of period deposit balances (unaudited - dollars in thousands) | ||||||||||||||||
March 31, 2019 | December 31, 2018 | $ Change | % Change | |||||||||||||
Noninterest-bearing demand | $ | 657,510 | $ | 468,083 | $ | 189,427 | 40.5 | % | ||||||||
Interest-bearing demand | 284,369 | 261,996 | 22,373 | 8.5 | % | |||||||||||
Savings and money market | 550,591 | 562,882 | (12,291 | ) | -2.2 | % | ||||||||||
Time deposits | 264,095 | 258,832 | 5,263 | 2.0 | % | |||||||||||
Brokered deposits | 9,236 | 28,100 | (18,864 | ) | -67.1 | % | ||||||||||
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Total Deposits | $ | 1,765,801 | $ | 1,579,893 | $ | 185,908 | 11.8 | % | ||||||||
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The increase was due almost entirely to the additional cash balances related to the tax refund processing program, which led to the increase in noninterest-bearing demand of $189.4 million. Interest-bearing demand deposits increased, primarily due to increases in public fund accounts. The increase in tax refund processing cash also led to a decrease in brokered deposits, as well as overnight funding from the Federal Home Loan Bank (“FHLB”). FHLB advances totaled $127.1 million at March 31, 2019, a decrease of $66.5 million, or 34.3%, from December 31, 2018.
Asset Quality
Civista recorded net recoveries of $143 thousand for the three months of 2019 compared to net charge-offs of $320 thousand for the same period of 2018.
Allowance for Loan Losses (unaudited - dollars in thousands) | ||||||||
March 31, 2019 | March 31, 2018 | |||||||
Beginning of period | $ | 13,679 | $ | 13,134 | ||||
Charge-offs | (239 | ) | (425 | ) | ||||
Recoveries | 382 | 105 | ||||||
Provision | — | — | ||||||
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End of period | $ | 13,822 | $ | 12,814 | ||||
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The allowance for loan losses to loans was 0.88% at March 31, 2019 and December 31, 2018. The non-performing assets to assets ratio decreased to 0.40% from 0.46% in 2018. The allowance for loan losses to non-performing loans increased to 150.6% from 137.9% in 2018.
Non-performing assets at March 31, 2019 were $9.2 million, a 7.5% decrease from December 31, 2018. Nonaccrual loans include $569 thousand and $1.0 million of purchased credit-impaired (“PCI”) loans at March 31, 2019 and December 31, 2018, respectively.
Non-performing Assets | ||||||||
(dollars in thousands) | March 31, | December 31, | ||||||
2019 | 2018 | |||||||
Non-accrual loans | $ | 5,581 | $ | 6,898 | ||||
Restructured loans | 3,597 | 3,024 | ||||||
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Total non-performing loans | 9,178 | 9,922 | ||||||
Other Real Estate Owned | — | — | ||||||
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Total non-performing assets | $ | 9,178 | $ | 9,922 | ||||
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Conference Call and Webcast
Civista Bancshares, Inc. will also host a conference call to discuss the Company’s financial results for the first quarter of 2019 at 1:00 p.m. ET on Friday, May 3, 2019. Interested parties can access the live webcast of the conference call through the Investor Relations section of the Company’s website, www.civb.com. Participants can also listen to the conference call by dialing 855-238-2712 and ask to be joined into the Civista Bancshares, Inc. First Quarter 2019 Earnings call. Please log in or dial in at least 10 minutes prior to the start time to ensure a connection.
An archive of the webcast will be available for one year on the Investor Relations section of the Company’s website (www.civb.com).
Forward Looking Statements
This press release may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of Civista. For these statements, Civista claims the protections of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Civista, including the information in the filings we make with the Securities and Exchange Commission. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include risk factors relating to the banking industry and the other factors detailed from time to time in Civista’ reports filed with the Securities and Exchange Commission, including those described in “Item 1A Risk Factors” of Part I of Civista’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018. Undue reliance should not be placed on the forward-looking statements, which speak only as of the date hereof. Civista does not undertake, and specifically disclaims any obligation, to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.
Civista Bancshares, Inc. is a $2.3 billion financial holding company headquartered in Sandusky, Ohio. The Company’s banking subsidiary, Civista Bank, operates 38 locations in Northern, Central and Southwestern Ohio, Southeastern Indiana and Northern Kentucky. Civista Bancshares, Inc. may be accessed at HUwww.civb.comUH. The Company’s common shares are traded on the NASDAQ Capital Market under the symbol “CIVB”. The Company’s depositary shares, each representing a 1/40th ownership interest in a Series B Preferred Share, are traded on the NASDAQ Capital Market under the symbol “CIVBP”.
For additional information, contact:
Dennis G. Shaffer
President and CEO
Civista Bancshares, Inc.
888-645-4121
Civista Bancshares, Inc.
Financial Highlights
(dollars in thousands, except share and per share amounts)
Consolidated Condensed Statement of Operations
Three Months Ended March 31, (unaudited) | ||||||||
2019 | 2018 | |||||||
Interest and dividend income | $ | 24,584 | $ | 15,924 | ||||
Interest expense | 2,865 | 1,152 | ||||||
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Net interest income | 21,719 | 14,772 | ||||||
Provision for loan losses | — | — | ||||||
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Net interest income after provision | 21,719 | 14,772 | ||||||
Noninterest income | 6,284 | 5,616 | ||||||
Noninterest expense | 16,449 | 12,205 | ||||||
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Income before taxes | 11,554 | 8,183 | ||||||
Income tax expense | 1,885 | 1,194 | ||||||
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Net income | 9,669 | 6,989 | ||||||
Preferred stock dividends | 164 | 303 | ||||||
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Net income available to common shareholders | $ | 9,505 | $ | 6,686 | ||||
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Dividends per common share | $ | 0.09 | $ | 0.07 | ||||
Earnings per common share, | ||||||||
basic | $ | 0.61 | $ | 0.65 | ||||
diluted | $ | 0.57 | $ | 0.55 | ||||
Average shares outstanding, | ||||||||
basic | 15,607,655 | 10,213,264 | ||||||
diluted | 16,901,830 | 12,597,394 | ||||||
Selected financial ratios: | ||||||||
Return on average assets | 1.72 | % | 1.70 | % | ||||
Return on average equity | 13.00 | % | 15.37 | % | ||||
Dividend payout ratio | 14.53 | % | 10.23 | % | ||||
Net interest margin (tax equivalent) | 4.45 | % | 4.05 | % |
Selected Balance Sheet Items
March 31, | December 31, | |||||||
2019 | 2018 | |||||||
(unaudited) | (unaudited) | |||||||
Cash and due from financial institutions | $ | 164,094 | $ | 42,779 | ||||
Investment securities | 351,006 | 347,364 | ||||||
Loans held for sale | 1,444 | 1,391 | ||||||
Loans | 1,573,193 | 1,561,941 | ||||||
Less allowance for loan losses | 13,822 | 13,679 | ||||||
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Net loans | 1,559,371 | 1,548,262 | ||||||
Other securities | 20,280 | 21,021 | ||||||
Premises and equipment, net | 21,772 | 22,021 | ||||||
Goodwill and other intangibles | 85,955 | 86,203 | ||||||
Bank owned life insurance | 44,239 | 43,037 | ||||||
Other assets | 29,541 | 26,876 | ||||||
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Total assets | $ | 2,277,702 | $ | 2,138,954 | ||||
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Total deposits | $ | 1,765,801 | $ | 1,579,893 | ||||
Federal Home Loan Bank advances | 127,100 | 193,600 | ||||||
Securities sold under agreements to repurchase | 21,970 | 22,199 | ||||||
Subordinated debentures | 29,427 | 29,427 | ||||||
Accrued expenses and other liabilities | 21,347 | 14,937 | ||||||
Total shareholders’ equity | 312,057 | 298,898 | ||||||
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Total liabilities and shareholders’ equity | $ | 2,277,702 | $ | 2,138,954 | ||||
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Shares outstanding at period end | 15,624,113 | 15,603,499 | ||||||
Book value per share | $ | 19.37 | $ | 18.56 | ||||
Equity to asset ratio | 13.70 | % | 13.97 | % | ||||
Selected asset quality ratios: | ||||||||
Allowance for loan losses to total loans | 0.88 | % | 0.88 | % | ||||
Non-performing assets to total assets | 0.40 | % | 0.46 | % | ||||
Allowance for loan losses to non-performing loans | 150.60 | % | 137.87 | % | ||||
Non-performing asset analysis | ||||||||
Nonaccrual loans | $ | 5,581 | $ | 6,898 | ||||
Troubled debt restructurings | 3,597 | 3,024 | ||||||
Other real estate owned | — | — | ||||||
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Total | $ | 9,178 | $ | 9,922 | ||||
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Supplemental Financial Information
(Unaudited - Dollars in thousands except share data)
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
End of Period Balances | 2019 | 2018 | 2018 | 2018 | 2018 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 164,094 | $ | 42,779 | $ | 64,754 | $ | 41,156 | $ | 118,970 | ||||||||||
Investment securities | 351,006 | 347,364 | 318,112 | 231,013 | 234,915 | |||||||||||||||
Loans held for sale | 1,444 | 1,391 | 4,025 | 4,058 | 2,379 | |||||||||||||||
Loans | 1,573,193 | 1,561,941 | 1,515,644 | 1,180,032 | 1,153,758 | |||||||||||||||
Allowance for loan losses | (13,822 | ) | (13,679 | ) | (13,331 | ) | (12,867 | ) | (12,814 | ) | ||||||||||
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Net Loans | 1,559,371 | 1,548,262 | 1,502,313 | 1,167,165 | 1,140,944 | |||||||||||||||
Other securities | 20,280 | 21,021 | 17,774 | 15,154 | 14,247 | |||||||||||||||
Premises and equipment, net | 21,772 | 22,021 | 22,518 | 17,308 | 17,424 | |||||||||||||||
Goodwill and other intangibles | 85,955 | 86,203 | 85,964 | 28,342 | 28,354 | |||||||||||||||
Bank owned life insurance | 44,239 | 43,037 | 42,750 | 25,411 | 25,267 | |||||||||||||||
Other assets | 29,541 | 26,876 | 27,325 | 18,700 | 17,805 | |||||||||||||||
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Total Assets | $ | 2,277,702 | $ | 2,138,954 | $ | 2,085,535 | $ | 1,548,307 | $ | 1,600,305 | ||||||||||
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Liabilities | ||||||||||||||||||||
Total deposits | $ | 1,765,801 | $ | 1,579,893 | $ | 1,577,755 | $ | 1,146,172 | $ | 1,290,671 | ||||||||||
Federal Home Loan Bank advances | 127,100 | 193,600 | 145,100 | 156,200 | 60,000 | |||||||||||||||
Securities sold under agreement to repurchase | 21,970 | 22,199 | 18,515 | 14,230 | 17,452 | |||||||||||||||
Subordinated debentures | 29,427 | 29,427 | 29,427 | 29,427 | 29,427 | |||||||||||||||
Accrued expenses and other liabilities | 21,347 | 14,937 | 25,350 | 12,430 | 14,712 | |||||||||||||||
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Total liabilities | 1,965,645 | 1,840,056 | 1,796,147 | 1,358,459 | 1,412,262 | |||||||||||||||
Shareholders’ Equity | ||||||||||||||||||||
Preferred shares, Series B | 9,364 | 9,364 | 10,878 | 13,250 | 17,034 | |||||||||||||||
Common stock | 266,990 | 266,901 | 265,324 | 158,191 | 154,170 | |||||||||||||||
Accumulated earnings | 49,421 | 41,320 | 35,302 | 39,898 | 37,902 | |||||||||||||||
Treasury stock | (17,235 | ) | (17,235 | ) | (17,235 | ) | (17,235 | ) | (17,235 | ) | ||||||||||
Accumulated other comprehensive loss | 3,517 | (1,452 | ) | (4,881 | ) | (4,256 | ) | (3,828 | ) | |||||||||||
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Total shareholders’ equity | 312,057 | 298,898 | 289,388 | 189,848 | 188,043 | |||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 2,277,702 | $ | 2,138,954 | $ | 2,085,535 | $ | 1,548,307 | $ | 1,600,305 | ||||||||||
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Quarterly Average Balances | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Earning assets | $ | 2,017,523 | $ | 1,907,966 | $ | 1,534,039 | $ | 1,427,953 | $ | 1,502,943 | ||||||||||
Securities | 365,219 | 352,412 | 252,832 | 247,301 | 242,477 | |||||||||||||||
Loans | 1,564,208 | 1,532,012 | 1,256,680 | 1,158,956 | 1,147,441 | |||||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||
Total deposits | $ | 1,807,102 | $ | 1,591,521 | $ | 1,202,419 | $ | 1,190,415 | $ | 1,380,413 | ||||||||||
Interest-bearing deposits | $ | 1,126,173 | 1,120,876 | 816,773 | 756,289 | 803,604 | ||||||||||||||
Interest-bearing liabilities | 148,891 | 204,002 | 228,164 | 149,433 | 87,467 | |||||||||||||||
Total shareholders’ equity | 301,656 | 290,096 | 205,601 | 188,330 | 184,432 |
Supplemental Financial Information
(Unaudited - Dollars in thousands except share data)
Three Months Ended | ||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
Income statement | 2019 | 2018 | 2018 | 2018 | 2018 | |||||||||||||||
Total interest and dividend income | $ | 24,584 | $ | 23,707 | $ | 17,886 | $ | 16,160 | $ | 15,924 | ||||||||||
Total interest expense | 2,865 | 2,962 | 2,062 | 1,394 | 1,152 | |||||||||||||||
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Net interest income | 21,719 | 20,745 | 15,824 | 14,766 | 14,772 | |||||||||||||||
Provision for loan losses | — | 390 | 390 | — | — | |||||||||||||||
Noninterest income | 6,284 | 4,838 | 3,288 | 4,390 | 5,616 | |||||||||||||||
Noninterest expense | 16,449 | 16,391 | 22,156 | 15,928 | 12,205 | |||||||||||||||
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Income (loss) before taxes | 11,554 | 8,802 | (3,434 | ) | 3,228 | 8,183 | ||||||||||||||
Income tax expense (benefit) | 1,885 | 1,233 | (1 | ) | 214 | 1,194 | ||||||||||||||
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Net income (loss) | 9,669 | 7,569 | (3,433 | ) | 3,014 | 6,989 | ||||||||||||||
Preferred stock dividends | 164 | 165 | 192 | 299 | 303 | |||||||||||||||
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Net income (loss) available to common shareholders | $ | 9,505 | $ | 7,404 | $ | (3,625 | ) | $ | 2,715 | $ | 6,686 | |||||||||
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Common shares dividend paid | $ | 1,404 | $ | 1,386 | $ | 971 | $ | 719 | $ | 714 | ||||||||||
Per share data | ||||||||||||||||||||
Basic earnings per common share | $ | 0.61 | $ | 0.48 | $ | (0.31 | ) | $ | 0.26 | $ | 0.65 | |||||||||
Diluted earnings per common share | 0.57 | 0.45 | (0.31 | ) | 0.24 | 0.55 | ||||||||||||||
Dividends per common share | 0.09 | 0.09 | 0.09 | 0.07 | 0.07 | |||||||||||||||
Average common shares outstanding - basic | 15,607,655 | 15,521,404 | 11,627,093 | 10,470,839 | 10,213,264 | |||||||||||||||
Average common shares outstanding - diluted | 16,901,830 | 16,898,186 | 13,271,073 | 12,615,336 | 12,597,394 | |||||||||||||||
Asset quality | ||||||||||||||||||||
Allowance for loan losses, beginning of period | $ | 13,679 | $ | 13,331 | $ | 12,867 | $ | 12,814 | $ | 13,134 | ||||||||||
Charge-offs | (239 | ) | (119 | ) | (133 | ) | (226 | ) | (425 | ) | ||||||||||
Recoveries | 382 | 77 | 207 | 279 | 105 | |||||||||||||||
Provision | — | 390 | 390 | — | — | |||||||||||||||
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Allowance for loan losses, end of period | $ | 13,822 | $ | 13,679 | $ | 13,331 | $ | 12,867 | $ | 12,814 | ||||||||||
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Ratios | ||||||||||||||||||||
Allowance to total loans | 0.88 | % | 0.88 | % | 0.88 | % | 1.09 | % | 1.11 | % | ||||||||||
Allowance to nonperforming assets | 150.60 | % | 137.87 | % | 132.86 | % | 168.36 | % | 154.21 | % | ||||||||||
Allowance to nonperforming loans | 150.60 | % | 137.87 | % | 132.86 | % | 168.36 | % | 154.41 | % | ||||||||||
Nonperforming assets | ||||||||||||||||||||
Nonperforming loans | $ | 9,178 | $ | 9,140 | $ | 10,034 | $ | 7,642 | $ | 8,298 | ||||||||||
Other real estate owned | — | — | — | — | 11 | |||||||||||||||
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Total nonperforming assets | $ | 9,178 | $ | 9,140 | $ | 10,034 | $ | 7,642 | $ | 8,309 | ||||||||||
Capital and liquidity | ||||||||||||||||||||
Tier 1 leverage ratio | 11.64 | % | 12.22 | % | 15.37 | % | 12.96 | % | 11.82 | % | ||||||||||
Tier 1 risk-based capital ratio | 15.64 | % | 15.30 | % | 15.43 | % | 15.71 | % | 15.87 | % | ||||||||||
Total risk-based capital ratio | 16.48 | % | 16.15 | % | 16.29 | % | 16.74 | % | 16.92 | % | ||||||||||
Tangible common equity ratio | 9.96 | % | 9.98 | % | 9.71 | % | 9.80 | % | 9.12 | % |
Non-GAAP Reconciliation
Tangible Common Equity and Tangible Assets
(Unaudited - Dollars in thousands except share data)
Three Months Ended | ||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
2019 | 2018 | 2018 | 2018 | 2018 | ||||||||||||||||
Tangible Common Equity | ||||||||||||||||||||
Total Equity | $ | 312,057 | $ | 298,898 | $ | 289,388 | $ | 189,848 | $ | 188,043 | ||||||||||
Less: Preferred Equity | 9,364 | 9,364 | 10,878 | 13,250 | 17,034 | |||||||||||||||
Less: Goodwill and intangible assets | 84,299 | 84,540 | 84,286 | 27,572 | 27,598 | |||||||||||||||
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Tangible common equity | $ | 218,394 | $ | 204,994 | $ | 194,224 | $ | 149,026 | $ | 143,411 | ||||||||||
Total Shares Outstanding | 15,624,113 | 15,603,499 | 15,395,064 | 10,788,892 | 10,243,274 | |||||||||||||||
Tangible book value per share | $ | 13.98 | $ | 13.14 | $ | 12.62 | $ | 13.81 | $ | 14.00 | ||||||||||
Tangible Assets | ||||||||||||||||||||
Total Assets | $ | 2,277,702 | $ | 2,138,954 | $ | 2,085,535 | $ | 1,548,307 | $ | 1,600,305 | ||||||||||
Less: Goodwill and intangible assets | 84,299 | 84,540 | 84,286 | 27,572 | 27,598 | |||||||||||||||
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Tangible assets | $ | 2,193,403 | $ | 2,054,414 | $ | 2,001,249 | $ | 1,520,735 | $ | 1,572,707 | ||||||||||
Tangible common equity to tangible assets | 9.96 | % | 9.98 | % | 9.71 | % | 9.80 | % | 9.12 | % |