First Quarter 2024 Highlights
- Net income for the first quarter of 2024 of
$7.9 million , compared to$7.9 million in the prior quarter and$9.0 million in the first quarter of 2023. Net income for the first quarter of 2024 represents a return on average assets of 1.48% and a return on average tangible common equity of 16.86% - Diluted earnings per share for the first quarter of 2024 of
$1.36 , compared to$1.36 in the prior quarter and$1.57 in the first quarter of 2023 - Loans held-for-investment (“HFI”) totaled
$1.91 billion as ofMarch 31, 2024 , an increase of$59.8 million or 3.2% (13.0% annualized) fromDecember 31, 2023 . Loans HFI increased 17.5% year over year - Provision for credit losses for the first quarter of 2024 was
$0.2 million , compared to$0.5 million for the prior quarter and$0.1 million for the first quarter of 2023. The allowance for loan losses was 1.29% of loans HFI as ofMarch 31, 2024 - Total deposits were
$1.90 billion as ofMarch 31, 2024 , an increase of$29.3 million or 1.6% (6.3% annualized) fromDecember 31, 2023 .Federal Home Loan Bank advances decreased by$4.0 million as a consequence of deposit growth. Core deposits were$1.61 billion as ofMarch 31, 2024 , an increase of$22.1 million or 1.4% fromDecember 31, 2023 - Net interest margin was 4.31% for the first quarter of 2024, as compared to 4.33% for the prior quarter and 4.90% for the first quarter of 2023
- Total cost of funding sources was 2.70% for the first quarter of 2024, an increase from 2.53% in the prior quarter and 1.39% in the first quarter of 2023
- Tangible book value per share was
$33.55 as ofMarch 31, 2024 , an increase of$1.47 sinceDecember 31, 2023 as a result of strong earnings. Tangible book value per share increased 4.6% quarter-over-quarter and 27.6% year over year.
Sowers added, “We view this as an opportunistic market. We continue to hire great bankers who share our culture and passion for Client service. Disruption in our markets continues to provide opportunities for us to grow and we fully intend to take advantage of those. To support that growth, we continue to forge ahead with infrastructure and technology investments to support our business and private banking clients, both now and into the future.”
“The Company continues to exhibit successful customer acquisition activity despite a challenging interest rate environment. Additionally, the Company is investing in people and infrastructure, including strong risk management, product strategy and innovation needed to support the continued growth of the CalPrivate franchise,” said
STATEMENT OF INCOME
Net Interest Income
Net interest income for the first quarter of 2024 totaled
Net Interest Margin
Net interest margin for the first quarter of 2024 was 4.31%, compared to 4.33% for the prior quarter and 4.90% in the first quarter of 2023. The 2 basis point decrease in net interest margin from the prior quarter was due primarily to higher rates paid on deposits, partially offset by higher rates on new loan originations and variable rate loans and investment securities. The yield on earning assets was 6.78% for the first quarter of 2024 compared to 6.64% for the prior quarter, and the cost of interest-bearing liabilities was 3.77% for the first quarter of 2024 compared to 3.68% in the prior quarter. The cost of total deposits was 2.61% for the first quarter of 2024 compared to 2.41% in the prior quarter. The cost of core deposits, which excludes brokered deposits, was 2.14% in the first quarter of 2024 compared to 1.93% in the prior quarter. The spot rate for total deposits was 2.66% as of
Provision for Credit Losses
Provision expense for credit losses for the first quarter of 2024 was
Noninterest Income
Noninterest income was
Noninterest Expense
Noninterest expense was
The Company remains committed to making investments in the business, including technology, marketing, and staffing. Inflationary pressures and low unemployment continue to have an impact on rising wages as well as increased costs related to third party service providers, which we proactively monitor and manage.
Provision for Income Tax Expense
Provision for income tax expense was
STATEMENT OF FINANCIAL CONDITION
As of
Total deposits were
As of
Asset Quality and Allowance for Credit Losses ("ACL")
As of
At
Capital Ratios (2)
The Bank’s capital ratios were in excess of the levels established for “well capitalized” institutions and are as follows:
Tier I leverage ratio | 10.08% | 10.07% |
Tier I risk-based capital ratio | 11.20% | 11.02% |
Total risk-based capital ratio | 12.45% | 12.27% |
(2)
About
CalPrivate Bank’s website is www.calprivate.bank.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures in addition to results presented in accordance with GAAP, including adjusted income before provision for income taxes, adjusted net income, adjusted diluted earnings per share (“Adjusted EPS”), efficiency ratio, adjusted efficiency ratio, pretax pre-provision net revenue, average tangible common equity, adjusted return on average assets, return on average tangible common equity and adjusted return on average tangible common equity. The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company's results of operations and financial condition and to enhance investors’ overall understanding of such results of operations and financial condition, permit investors to effectively analyze financial trends of our business activities, and enhance comparability with peers across the financial services sector. These non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures prepared in accordance with GAAP and should be read in conjunction with the Company’s GAAP financial information. A reconciliation of the most comparable GAAP financial measures to non-GAAP financial measures is included in the accompanying financial tables.
Investor Relations Contacts
President and Chief Executive Officer
(424) 303-4894
Executive Vice President and Chief Financial Officer
(206) 293-3669
Safe Harbor Paragraph
This communication contains expressions of expectations, both implied and explicit, that are “forward-looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. We caution you that a number of important factors could cause actual results to differ materially from those in the forward-looking statements, especially given the current turmoil in the banking and financial markets. These factors include the effects of depositors withdrawing funds unexpectedly, counterparties being unable to provide liquidity sources that we believe should be available, loan losses, economic conditions and competition in the geographic and business areas in which
CONSOLIDATED BALANCE SHEET (Unaudited) (Dollars in thousands) | ||||||||||||
Assets | ||||||||||||
Cash and due from banks | $ | 13,136 | $ | 19,811 | $ | 13,347 | ||||||
Interest-bearing deposits in other financial institutions | 34,790 | 39,667 | 73,420 | |||||||||
Interest-bearing deposits at | 93,575 | 118,622 | 125,045 | |||||||||
Total cash and due from banks | 141,501 | 178,100 | 211,812 | |||||||||
Interest-bearing time deposits with other institutions | 4,032 | 4,000 | 7,661 | |||||||||
Investment debt securities available for sale | 114,067 | 102,499 | 103,790 | |||||||||
Loans held for sale | 383 | 1,233 | 465 | |||||||||
Loans, net of deferred fees and costs and unaccreted discounts | 1,906,992 | 1,847,161 | 1,623,028 | |||||||||
Allowance for loan losses | (24,693 | ) | (24,476 | ) | (21,135 | ) | ||||||
Loans held-for-investment, net of allowance | 1,882,299 | 1,822,685 | 1,601,893 | |||||||||
8,915 | 8,915 | 7,020 | ||||||||||
Right of use asset | 2,765 | 3,096 | 2,889 | |||||||||
Premises and equipment, net | 1,804 | 1,700 | 1,744 | |||||||||
Servicing assets, net | 2,203 | 2,318 | 3,057 | |||||||||
Accrued interest receivable | 7,931 | 7,499 | 5,674 | |||||||||
Other assets | 21,877 | 20,423 | 20,623 | |||||||||
Total assets | $ | 2,187,777 | $ | 2,152,468 | $ | 1,966,628 | ||||||
Liabilities and Shareholders' Equity | ||||||||||||
Liabilities | ||||||||||||
Noninterest bearing | $ | 516,294 | $ | 572,755 | $ | 639,664 | ||||||
Interest bearing | 1,388,381 | 1,302,615 | 944,102 | |||||||||
Total deposits | 1,904,675 | 1,875,370 | 1,583,766 | |||||||||
FHLB borrowings | 53,000 | 57,000 | 192,000 | |||||||||
Other borrowings | 17,963 | 17,961 | 17,956 | |||||||||
Accrued interest payable and other liabilities | 18,107 | 16,354 | 20,592 | |||||||||
Total liabilities | 1,993,745 | 1,966,685 | 1,814,314 | |||||||||
Shareholders' equity | ||||||||||||
Common stock | 74,105 | 74,003 | 73,254 | |||||||||
Additional paid-in capital | 4,108 | 3,679 | 3,289 | |||||||||
Retained earnings | 124,464 | 116,604 | 84,751 | |||||||||
Accumulated other comprehensive (loss) income, net | (8,645 | ) | (8,503 | ) | (8,980 | ) | ||||||
Total shareholders' equity | 194,032 | 185,783 | 152,314 | |||||||||
Total liabilities and shareholders' equity | $ | 2,187,777 | $ | 2,152,468 | $ | 1,966,628 |
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Dollars in thousands, except per share amounts) | ||||||||||||
For the three months ended | ||||||||||||
Interest Income | ||||||||||||
Loans | $ | 33,006 | $ | 31,482 | $ | 26,228 | ||||||
Investment securities | 979 | 655 | 580 | |||||||||
Deposits in other financial institutions | 1,799 | 1,926 | 1,150 | |||||||||
Total interest income | 35,784 | 34,063 | 27,958 | |||||||||
Interest Expense | ||||||||||||
Deposits | 12,130 | 10,874 | 4,924 | |||||||||
Borrowings | 886 | 1,001 | 866 | |||||||||
Total interest expense | 13,016 | 11,875 | 5,790 | |||||||||
Net interest income | 22,768 | 22,188 | 22,168 | |||||||||
Provision (reversal) for credit losses | 233 | 459 | 73 | |||||||||
Net interest income after provision for credit losses | 22,535 | 21,729 | 22,095 | |||||||||
Noninterest income: | ||||||||||||
Service charges on deposit accounts | 388 | 373 | 348 | |||||||||
Net gain on sale of loans | 681 | 436 | 474 | |||||||||
Other noninterest income | 357 | 435 | 643 | |||||||||
Total noninterest income | 1,426 | 1,244 | 1,465 | |||||||||
Noninterest expense: | ||||||||||||
Compensation and employee benefits | 8,861 | 7,942 | 8,030 | |||||||||
Occupancy and equipment | 770 | 790 | 806 | |||||||||
Data processing | 1,058 | 1,001 | 944 | |||||||||
Professional services | 488 | 410 | 438 | |||||||||
Other expenses | 1,606 | 1,625 | 1,339 | |||||||||
Total noninterest expense | 12,783 | 11,768 | 11,557 | |||||||||
Income before provision for income taxes | 11,178 | 11,205 | 12,003 | |||||||||
Provision for income taxes | 3,294 | 3,346 | 3,029 | |||||||||
Net income | $ | 7,884 | $ | 7,859 | $ | 8,974 | ||||||
Net income available to common shareholders | $ | 7,832 | $ | 7,800 | $ | 8,923 | ||||||
Earnings per share | ||||||||||||
Basic earnings per share | $ | 1.38 | $ | 1.38 | $ | 1.59 | ||||||
Diluted earnings per share | $ | 1.36 | $ | 1.36 | $ | 1.57 | ||||||
Average shares outstanding | 5,679,843 | 5,664,028 | 5,608,193 | |||||||||
Diluted average shares outstanding | 5,754,937 | 5,723,735 | 5,673,394 |
Consolidated average balance sheet, interest, yield and rates (Unaudited) (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||
For the three months ended | ||||||||||||||||||||||||||||||||||||
Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | ||||||||||||||||||||||||||||
Interest-Earnings Assets | ||||||||||||||||||||||||||||||||||||
Deposits in other financial institutions | $ | 135,511 | $ | 1,799 | 5.34 | % | $ | 144,265 | $ | 1,926 | 5.30 | % | $ | 123,159 | $ | 1,150 | 3.79 | % | ||||||||||||||||||
Investment securities | 119,690 | 979 | 3.27 | % | 101,719 | 655 | 2.58 | % | 112,694 | 580 | 2.06 | % | ||||||||||||||||||||||||
Loans, including LHFS | 1,868,308 | 33,006 | 7.11 | % | 1,788,572 | 31,482 | 6.98 | % | 1,597,236 | 26,228 | 6.66 | % | ||||||||||||||||||||||||
Total interest-earning assets | 2,123,509 | 35,784 | 6.78 | % | 2,034,556 | 34,063 | 6.64 | % | 1,833,089 | 27,958 | 6.19 | % | ||||||||||||||||||||||||
Noninterest-earning assets | 25,469 | 27,930 | 24,905 | |||||||||||||||||||||||||||||||||
Total Assets | $ | 2,148,978 | $ | 2,062,486 | $ | 1,857,994 | ||||||||||||||||||||||||||||||
Interest-Bearing Liabilities | ||||||||||||||||||||||||||||||||||||
Interest bearing DDA, excluding brokered | 109,838 | 441 | 1.61 | % | 112,580 | 503 | 1.77 | % | 100,640 | 343 | 1.38 | % | ||||||||||||||||||||||||
Savings & MMA, excluding brokered | 765,770 | 6,421 | 3.37 | % | 713,754 | 5,811 | 3.23 | % | 619,316 | 2,378 | 1.56 | % | ||||||||||||||||||||||||
Time deposits, excluding brokered | 155,703 | 1,583 | 4.09 | % | 123,985 | 1,155 | 3.70 | % | 83,032 | 456 | 2.23 | % | ||||||||||||||||||||||||
Total deposits, excluding brokered | 1,031,311 | 8,445 | 3.29 | % | 950,319 | 7,469 | 3.12 | % | 802,988 | 3,177 | 1.60 | % | ||||||||||||||||||||||||
Total brokered deposits | 287,885 | 3,685 | 5.15 | % | 256,761 | 3,405 | 5.26 | % | 151,993 | 1,747 | 4.66 | % | ||||||||||||||||||||||||
Total Interest-Bearing Deposits | 1,319,196 | 12,130 | 3.70 | % | 1,207,080 | 10,874 | 3.57 | % | 954,981 | 4,924 | 2.09 | % | ||||||||||||||||||||||||
FHLB advances | 49,935 | 614 | 4.95 | % | 56,511 | 728 | 5.11 | % | 48,711 | 594 | 4.95 | % | ||||||||||||||||||||||||
Other borrowings | 17,962 | 272 | 6.09 | % | 17,960 | 273 | 6.03 | % | 17,976 | 272 | 6.14 | % | ||||||||||||||||||||||||
Total Interest-Bearing Liabilities | 1,387,093 | 13,016 | 3.77 | % | 1,281,551 | 11,875 | 3.68 | % | 1,021,668 | 5,790 | 2.30 | % | ||||||||||||||||||||||||
Noninterest-bearing deposits | 553,541 | 581,579 | 669,796 | |||||||||||||||||||||||||||||||||
Total Funding Sources | 1,940,634 | 13,016 | 2.70 | % | 1,863,130 | 11,875 | 2.53 | % | 1,691,464 | 5,790 | 1.39 | % | ||||||||||||||||||||||||
Noninterest-bearing liabilities | 18,018 | 19,069 | 19,752 | |||||||||||||||||||||||||||||||||
Shareholders' equity | 190,326 | 180,287 | 146,778 | |||||||||||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 2,148,978 | $ | 2,062,486 | $ | 1,857,994 | ||||||||||||||||||||||||||||||
Net interest income/spread | $ | 22,768 | 4.08 | % | $ | 22,188 | 4.11 | % | $ | 22,168 | 4.80 | % | ||||||||||||||||||||||||
Net interest margin | 4.31 | % | 4.33 | % | 4.90 | % |
Condensed Balance Sheets (Unaudited) (Dollars in thousands, except per share amounts) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 141,501 | $ | 178,100 | $ | 198,328 | $ | 135,859 | $ | 211,812 | ||||||||||
Interest-bearing time deposits with other institutions | 4,032 | 4,000 | 1,500 | 7,661 | 7,661 | |||||||||||||||
Investment securities | 114,067 | 102,499 | 86,648 | 94,574 | 103,790 | |||||||||||||||
Loans held for sale | 383 | 1,233 | 4,071 | 1,982 | 465 | |||||||||||||||
Total loans held-for-investment | 1,906,992 | 1,847,161 | 1,764,846 | 1,717,705 | 1,623,028 | |||||||||||||||
Allowance for loan losses | (24,693 | ) | (24,476 | ) | (23,789 | ) | (22,588 | ) | (21,135 | ) | ||||||||||
Loans held-for-investment, net of allowance | 1,882,299 | 1,822,685 | 1,741,057 | 1,695,117 | 1,601,893 | |||||||||||||||
Right of use asset | 2,765 | 3,096 | 2,827 | 2,525 | 2,889 | |||||||||||||||
Premises and equipment, net | 1,804 | 1,700 | 1,447 | 1,539 | 1,744 | |||||||||||||||
Other assets and interest receivable | 40,926 | 39,155 | 38,341 | 37,480 | 36,374 | |||||||||||||||
Total assets | $ | 2,187,777 | $ | 2,152,468 | $ | 2,074,219 | $ | 1,976,737 | $ | 1,966,628 | ||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||
Noninterest Bearing | $ | 516,294 | $ | 572,755 | $ | 595,023 | $ | 657,980 | $ | 639,664 | ||||||||||
Interest Bearing | 1,388,381 | 1,302,615 | 1,174,664 | 1,041,192 | 944,102 | |||||||||||||||
Total Deposits | 1,904,675 | 1,875,370 | 1,769,687 | 1,699,172 | 1,583,766 | |||||||||||||||
Borrowings | 70,963 | 74,961 | 99,959 | 83,958 | 209,956 | |||||||||||||||
Accrued interest payable and other liabilities | 18,107 | 16,354 | 29,894 | 26,396 | 20,592 | |||||||||||||||
Total liabilities | 1,993,745 | 1,966,685 | 1,899,540 | 1,809,526 | 1,814,314 | |||||||||||||||
Shareholders' equity | ||||||||||||||||||||
Common stock | 74,105 | 74,003 | 73,416 | 73,379 | 73,254 | |||||||||||||||
Additional paid-in capital | 4,108 | 3,679 | 3,584 | 3,405 | 3,289 | |||||||||||||||
Retained earnings | 124,464 | 116,604 | 108,757 | 100,281 | 84,751 | |||||||||||||||
Accumulated other comprehensive (loss) income | (8,645 | ) | (8,503 | ) | (11,078 | ) | (9,854 | ) | (8,980 | ) | ||||||||||
Total shareholders' equity | 194,032 | 185,783 | 174,679 | 167,211 | 152,314 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 2,187,777 | $ | 2,152,468 | $ | 2,074,219 | $ | 1,976,737 | $ | 1,966,628 | ||||||||||
Book value per common share | $ | 33.94 | $ | 32.48 | $ | 30.63 | $ | 29.32 | $ | 26.83 | ||||||||||
Tangible book value per common share (1) | $ | 33.55 | $ | 32.08 | $ | 30.20 | $ | 28.82 | $ | 26.30 | ||||||||||
Shares outstanding | 5,717,519 | 5,719,115 | 5,703,350 | 5,702,637 | 5,676,017 |
(1) Non-GAAP measure. See GAAP to non-GAAP Reconciliation table.
Condensed Statements of Income (Unaudited) (Dollars in thousands, except per share amounts) | |||||||||||||||||||
For the three months ended | |||||||||||||||||||
Interest income | $ | 35,784 | $ | 34,063 | $ | 32,878 | $ | 30,763 | $ | 27,958 | |||||||||
Interest expense | 13,016 | 11,875 | 9,623 | 8,055 | 5,790 | ||||||||||||||
Net interest income | 22,768 | 22,188 | 23,255 | 22,708 | 22,168 | ||||||||||||||
Provision (reversal) for credit losses | 233 | 459 | 471 | (7,149 | ) | 73 | |||||||||||||
Net interest income after provision for credit losses | 22,535 | 21,729 | 22,784 | 29,857 | 22,095 | ||||||||||||||
Service charges on deposit accounts | 388 | 373 | 313 | 310 | 348 | ||||||||||||||
Net gain on sale of loans | 681 | 436 | 466 | 171 | 474 | ||||||||||||||
Other noninterest income | 357 | 435 | 380 | 573 | 643 | ||||||||||||||
Total noninterest income | 1,426 | 1,244 | 1,159 | 1,054 | 1,465 | ||||||||||||||
Compensation and employee benefits | 8,861 | 7,942 | 7,512 | 7,189 | 8,030 | ||||||||||||||
Occupancy and equipment | 770 | 790 | 781 | 795 | 806 | ||||||||||||||
Data processing | 1,058 | 1,001 | 1,064 | 878 | 944 | ||||||||||||||
Professional services | 488 | 410 | 564 | (836 | ) | 438 | |||||||||||||
Other expenses | 1,606 | 1,625 | 1,922 | 776 | 1,339 | ||||||||||||||
Total noninterest expense | 12,783 | 11,768 | 11,843 | 8,802 | 11,557 | ||||||||||||||
Income before provision for income taxes | 11,178 | 11,205 | 12,100 | 22,109 | 12,003 | ||||||||||||||
Income taxes | 3,294 | 3,346 | 3,611 | 6,575 | 3,029 | ||||||||||||||
Net income | $ | 7,884 | $ | 7,859 | $ | 8,489 | $ | 15,534 | $ | 8,974 | |||||||||
Net income available to common shareholders | $ | 7,832 | $ | 7,800 | $ | 8,422 | $ | 15,407 | $ | 8,923 | |||||||||
Earnings per share | |||||||||||||||||||
Basic earnings per share | $ | 1.38 | $ | 1.38 | $ | 1.49 | $ | 2.72 | $ | 1.59 | |||||||||
Diluted earnings per share | $ | 1.36 | $ | 1.36 | $ | 1.47 | $ | 2.69 | $ | 1.57 | |||||||||
Average shares outstanding | 5,679,843 | 5,664,028 | 5,658,340 | 5,654,435 | 5,608,193 | ||||||||||||||
Diluted average shares outstanding | 5,754,937 | 5,723,735 | 5,709,994 | 5,726,522 | 5,673,394 |
Performance Ratios | |||||||||||||||||||
ROAA | 1.48 | % | 1.51 | % | 1.68 | % | 3.18 | % | 1.96 | % | |||||||||
ROAE | 16.66 | % | 17.29 | % | 19.43 | % | 38.42 | % | 24.80 | % | |||||||||
ROATCE (1) | 16.86 | % | 17.53 | % | 19.74 | % | 39.14 | % | 25.32 | % | |||||||||
Net interest margin | 4.31 | % | 4.33 | % | 4.67 | % | 4.73 | % | 4.90 | % | |||||||||
Net interest spread | 4.08 | % | 4.11 | % | 4.48 | % | 4.58 | % | 4.80 | % | |||||||||
Efficiency ratio (1) | 52.84 | % | 50.22 | % | 48.51 | % | 37.04 | % | 48.90 | % | |||||||||
Noninterest expense / average assets | 2.39 | % | 2.26 | % | 2.34 | % | 1.80 | % | 2.52 | % |
(1) Non-GAAP measure. See GAAP to non-GAAP Reconciliation table.
(Unaudited) | ||||||||||||||||||||
Selected Quarterly Average Balances | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
For the three months ended | ||||||||||||||||||||
Total assets | $ | 2,148,978 | $ | 2,062,486 | $ | 2,005,197 | $ | 1,959,802 | $ | 1,857,994 | ||||||||||
Earning assets | $ | 2,123,509 | $ | 2,034,556 | $ | 1,977,009 | $ | 1,927,061 | $ | 1,833,089 | ||||||||||
Total loans, including loans held for sale | $ | 1,868,308 | $ | 1,788,572 | $ | 1,745,113 | $ | 1,675,790 | $ | 1,597,236 | ||||||||||
Total deposits | $ | 1,872,737 | $ | 1,788,659 | $ | 1,698,892 | $ | 1,656,540 | $ | 1,624,777 | ||||||||||
Total shareholders' equity | $ | 190,326 | $ | 180,287 | $ | 173,347 | $ | 162,173 | $ | 146,778 |
Loan Balances by Type | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Investor owned | $ | 573,587 | $ | 583,069 | $ | 541,088 | $ | 527,819 | $ | 514,194 | ||||||||||
Owner occupied | 216,123 | 202,106 | 185,296 | 177,177 | 178,511 | |||||||||||||||
Multifamily | 175,629 | 168,324 | 159,700 | 158,082 | 151,262 | |||||||||||||||
Secured by single family | 157,092 | 146,370 | 153,132 | 148,464 | 147,813 | |||||||||||||||
Land and construction | 35,975 | 33,655 | 30,253 | 32,519 | 26,953 | |||||||||||||||
SBA secured by real estate | 385,416 | 349,676 | 343,576 | 329,403 | 272,059 | |||||||||||||||
Total CRE | 1,543,822 | 1,483,200 | 1,413,045 | 1,373,464 | 1,290,792 | |||||||||||||||
Commercial business: | ||||||||||||||||||||
Commercial and industrial | 352,417 | 350,879 | 337,815 | 332,394 | 319,154 | |||||||||||||||
SBA non-real estate secured | 8,657 | 9,807 | 11,081 | 9,121 | 10,591 | |||||||||||||||
Total commercial business | 361,074 | 360,686 | 348,896 | 341,515 | 329,745 | |||||||||||||||
Consumer | 2,096 | 3,275 | 2,905 | 2,726 | 2,491 | |||||||||||||||
Total loans held for investment | $ | 1,906,992 | $ | 1,847,161 | $ | 1,764,846 | $ | 1,717,705 | $ | 1,623,028 |
Deposits by Type | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Noninterest-bearing DDA | $ | 516,294 | $ | 572,755 | $ | 595,023 | $ | 657,980 | $ | 639,664 | ||||||||||
Interest-bearing DDA, excluding brokered | 117,129 | 121,829 | 108,508 | 101,064 | 99,988 | |||||||||||||||
Savings & MMA, excluding brokered | 812,841 | 742,617 | 696,499 | 670,195 | 637,031 | |||||||||||||||
Time deposits, excluding brokered | 160,605 | 147,583 | 122,622 | 105,757 | 77,052 | |||||||||||||||
Total deposits, excluding brokered | 1,606,869 | 1,584,784 | 1,522,652 | 1,534,996 | 1,453,735 | |||||||||||||||
Total brokered deposits | 297,806 | 290,586 | 247,035 | 164,176 | 130,031 | |||||||||||||||
Total deposits | $ | 1,904,675 | $ | 1,875,370 | $ | 1,769,687 | $ | 1,699,172 | $ | 1,583,766 |
(Unaudited) | ||||||||||||||||||||
Rollforward of Allowance for Credit Losses | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
For the three months ended | ||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||
Beginning balance | $ | 24,476 | $ | 23,789 | $ | 22,588 | $ | 21,135 | $ | 19,152 | ||||||||||
Impact of CECL adoption | - | - | - | - | 1,910 | |||||||||||||||
Provision for loan losses | 251 | 687 | 1,194 | (7,149 | ) | 73 | ||||||||||||||
Net (charge-offs) recoveries | (34 | ) | - | 7 | 8,602 | - | ||||||||||||||
Ending balance | 24,693 | 24,476 | 23,789 | 22,588 | 21,135 | |||||||||||||||
Reserve for unfunded commitments (1) | 1,723 | 1,741 | 1,969 | 2,172 | 2,802 | |||||||||||||||
Total allowance for credit losses | $ | 26,416 | $ | 26,217 | $ | 25,758 | $ | 24,760 | $ | 23,937 |
(1) Includes
Asset Quality | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Total loans held-for-investment | $ | 1,906,992 | $ | 1,847,161 | $ | 1,764,846 | $ | 1,717,705 | $ | 1,623,028 | ||||||||||
Allowance for loan losses | $ | (24,693 | ) | $ | (24,476 | ) | $ | (23,789 | ) | $ | (22,588 | ) | $ | (21,135 | ) | |||||
30-89 day past due loans | $ | - | $ | 1,470 | $ | 2,500 | $ | - | $ | - | ||||||||||
90+ day past due loans | $ | 3,530 | $ | 3,874 | $ | 1,374 | $ | 3,701 | $ | 3,058 | ||||||||||
Nonaccrual loans | $ | 4,656 | $ | 5,053 | $ | 5,105 | $ | 3,354 | $ | 4,384 | ||||||||||
NPAs / Assets | 0.21 | % | 0.23 | % | 0.25 | % | 0.17 | % | 0.22 | % | ||||||||||
NPLs / Total loans held-for-investment & OREO | 0.24 | % | 0.27 | % | 0.29 | % | 0.20 | % | 0.27 | % | ||||||||||
Net quarterly charge-offs (recoveries) | $ | 34 | $ | - | $ | (7 | ) | $ | (8,602 | ) | $ | - | ||||||||
Net charge-offs (recoveries) /avg loans (annualized) | 0.01 | % | 0.00 | % | 0.00 | % | (2.05 | )% | 0.00 | % | ||||||||||
Allowance for loan losses to loans HFI | 1.29 | % | 1.33 | % | 1.35 | % | 1.32 | % | 1.30 | % | ||||||||||
Allowance for loan losses to nonaccrual loans | 530.35 | % | 484.39 | % | 465.99 | % | 673.46 | % | 482.09 | % |
(Unaudited) | ||||||||||||||||||||
The following tables present a reconciliation of non-GAAP financial measures to GAAP measures for: adjusted income before provision for income taxes, adjusted net income and adjusted EPS. We believe the presentation of certain non-GAAP financial measures provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our peers. These non-GAAP financial measures complement our GAAP reporting and are presented below to provide investors and others with information that we use to manage the business each period. Because not all companies use identical calculations, the presentation of these non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. These non-GAAP measures should be taken together with the corresponding GAAP measures and should not be considered a substitute of the GAAP measures. | ||||||||||||||||||||
GAAP to Non-GAAP Reconciliation | ||||||||||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||||||
For the three months ended | ||||||||||||||||||||
Adjusted income before provision for income taxes | ||||||||||||||||||||
Income before provision for income taxes | $ | 11,178 | $ | 11,205 | $ | 12,100 | $ | 22,109 | $ | 12,003 | ||||||||||
ANI recovery (1) | - | - | - | (7,708 | ) | - | ||||||||||||||
Settlement of legal fees related to ANI litigation (2) | - | - | - | (1,635 | ) | - | ||||||||||||||
Recovery of principal and interest on a loan acquired with credit deterioration as part of a business combination (3) | - | - | - | (986 | ) | - | ||||||||||||||
Adjusted income before provision for income taxes (non-GAAP) | $ | 11,178 | $ | 11,205 | $ | 12,100 | $ | 11,780 | $ | 12,003 | ||||||||||
Adjusted net income | ||||||||||||||||||||
Net income | $ | 7,884 | $ | 7,859 | $ | 8,489 | $ | 15,534 | $ | 8,974 | ||||||||||
ANI recovery, net of tax (1)(4) | - | - | - | (5,430 | ) | - | ||||||||||||||
Settlement of legal fees related to ANI litigation, net of tax (2)(4) | - | - | - | (1,152 | ) | - | ||||||||||||||
Recovery of principal and interest on a loan acquired with credit deterioration as part of a business combination, net of tax(3)(4) | - | - | - | (694 | ) | - | ||||||||||||||
Adjusted net income (non-GAAP) | $ | 7,884 | $ | 7,859 | $ | 8,489 | $ | 8,258 | $ | 8,974 | ||||||||||
Adjusted diluted earnings per share ("Adjusted EPS") | ||||||||||||||||||||
Diluted earnings per share | $ | 1.36 | $ | 1.36 | $ | 1.47 | $ | 2.69 | $ | 1.57 | ||||||||||
ANI recovery, net of tax (1)(4) | - | - | - | (0.94 | ) | - | ||||||||||||||
Settlement of legal fees related to ANI litigation, net of tax (2)(4) | - | - | - | (0.20 | ) | - | ||||||||||||||
Recovery of principal and interest on a loan previously acquired with credit deterioration as part of a business combination, net of tax(3)(4) | - | - | - | (0.12 | ) | - | ||||||||||||||
Adjusted EPS (non-GAAP) | $ | 1.36 | $ | 1.36 | $ | 1.47 | $ | 1.43 | $ | 1.57 | ||||||||||
Diluted average shares outstanding | 5,754,937 | 5,723,735 | 5,709,994 | 5,726,522 | 5,673,394 |
(1) In the second quarter of 2023, the Company reached a settlement with the Receiver for ANI Investments and
(2) In the second quarter of 2023, in conjunction with the resolution of the ANI litigation, the Company was reimbursed
(3) In the second quarter of 2023, the Company received
(4) Net of tax effect of 29.6%, which is comprised of 21.0% for the statutory Federal tax rate plus 8.6% for state franchise taxes, net of Federal benefits.
(Unaudited) | ||||||||||||||||||||
The following tables present a reconciliation of non-GAAP financial measures to GAAP measures for: efficiency ratio, adjusted efficiency ratio, pretax pre-provision net revenue, average tangible common equity, adjusted return on average assets, return on average tangible common equity and adjusted return on average tangible common equity. We believe the presentation of certain non-GAAP financial measures provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our peers. These non-GAAP financial measures complement our GAAP reporting and are presented below to provide investors and others with information that we use to manage the business each period. Because not all companies use identical calculations, the presentation of these non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. These non-GAAP measures should be taken together with the corresponding GAAP measures and should not be considered a substitute of the GAAP measures. | ||||||||||||||||||||
GAAP to Non-GAAP Reconciliation | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
For the three months ended | ||||||||||||||||||||
Efficiency Ratio | ||||||||||||||||||||
Noninterest expense | $ | 12,783 | $ | 11,768 | $ | 11,843 | $ | 8,802 | $ | 11,557 | ||||||||||
Net interest income | 22,768 | 22,188 | 23,255 | 22,708 | 22,168 | |||||||||||||||
Noninterest income | 1,426 | 1,244 | 1,159 | 1,054 | 1,465 | |||||||||||||||
Total net interest income and noninterest income | 24,194 | 23,432 | 24,414 | 23,762 | 23,633 | |||||||||||||||
Efficiency ratio (non-GAAP) | 52.84 | % | 50.22 | % | 48.51 | % | 37.04 | % | 48.90 | % | ||||||||||
Adjusted Efficiency Ratio | ||||||||||||||||||||
Noninterest expense | $ | 12,783 | $ | 11,768 | $ | 11,843 | $ | 8,802 | $ | 11,557 | ||||||||||
Settlement of legal fees related to ANI litigation | - | - | - | 1,635 | - | |||||||||||||||
Adjusted noninterest expense (non-GAAP) | 12,783 | 11,768 | 11,843 | 10,437 | 11,557 | |||||||||||||||
Total net interest income and noninterest income | 24,194 | 23,432 | 24,414 | 23,762 | 23,633 | |||||||||||||||
Recovery of interest on a loan acquired with credit deterioration as part of a business combination | - | - | - | (84 | ) | - | ||||||||||||||
Adjusted total net interest income and noninterest income (non-GAAP) | 24,194 | 23,432 | 24,414 | 23,678 | 23,633 | |||||||||||||||
Adjusted Efficiency ratio (non-GAAP) | 52.84 | % | 50.22 | % | 48.51 | % | 44.08 | % | 48.90 | % | ||||||||||
Pretax pre-provision net revenue | ||||||||||||||||||||
Net interest income | $ | 22,768 | $ | 22,188 | $ | 23,255 | $ | 22,708 | $ | 22,168 | ||||||||||
Noninterest income | 1,426 | 1,244 | 1,159 | 1,054 | 1,465 | |||||||||||||||
Total net interest income and noninterest income | 24,194 | 23,432 | 24,414 | 23,762 | 23,633 | |||||||||||||||
Less: Noninterest expense | 12,783 | 11,768 | 11,843 | 8,802 | 11,557 | |||||||||||||||
Pretax pre-provision net revenue (non-GAAP) | $ | 11,411 | $ | 11,664 | $ | 12,571 | $ | 14,960 | $ | 12,076 | ||||||||||
Return and Adjusted Return on Average Assets, Average Equity, Average Tangible Equity | ||||||||||||||||||||
Net income | $ | 7,884 | $ | 7,859 | $ | 8,489 | $ | 15,534 | $ | 8,974 | ||||||||||
Adjusted net income (non-GAAP) (1) | 7,884 | 7,859 | 8,489 | 8,258 | 8,974 | |||||||||||||||
Average assets | 2,148,978 | 2,062,486 | 2,005,197 | 1,959,802 | 1,857,994 | |||||||||||||||
Average shareholders' equity | 190,326 | 180,287 | 173,347 | 162,173 | 146,778 | |||||||||||||||
Less: Average intangible assets | 2,208 | 2,451 | 2,709 | 2,975 | 3,026 | |||||||||||||||
Average tangible common equity (non-GAAP) | 188,118 | 177,836 | 170,638 | 159,198 | 143,752 | |||||||||||||||
Return on average assets | 1.48 | % | 1.51 | % | 1.68 | % | 3.18 | % | 1.96 | % | ||||||||||
Adjusted return on average assets (non-GAAP) (1) | 1.48 | % | 1.51 | % | 1.68 | % | 1.69 | % | 1.96 | % | ||||||||||
Return on average equity | 16.66 | % | 17.29 | % | 19.43 | % | 38.42 | % | 24.80 | % | ||||||||||
Adjusted return on average equity (non-GAAP) (1) | 16.66 | % | 17.29 | % | 19.43 | % | 20.42 | % | 24.80 | % | ||||||||||
Return on average tangible common equity (non-GAAP) | 16.86 | % | 17.53 | % | 19.74 | % | 39.14 | % | 25.32 | % | ||||||||||
Adjusted return on average tangible common equity (non-GAAP) (1) | 16.86 | % | 17.53 | % | 19.74 | % | 20.81 | % | 25.32 | % | ||||||||||
Tangible book value per share | ||||||||||||||||||||
Total equity | 194,032 | 185,783 | 174,679 | 167,211 | 152,314 | |||||||||||||||
Less: Total intangible assets | 2,203 | 2,318 | 2,449 | 2,875 | 3,057 | |||||||||||||||
Total tangible equity | 191,829 | 183,465 | 172,230 | 164,336 | 149,257 | |||||||||||||||
Shares outstanding | 5,717,519 | 5,719,115 | 5,703,350 | 5,702,637 | 5,676,017 | |||||||||||||||
Tangible book value per share (non-GAAP) | $ | 33.55 | $ | 32.08 | $ | 30.20 | $ | 28.82 | $ | 26.30 |
(1) A reconciliation of net income to adjusted net income is provided on page 12.
Source:
2024 GlobeNewswire, Inc., source