CALIFORNIA BANCORP The Company reported net income of
Diluted earnings per share were
“Despite a challenging year for the banking industry, we generated a record level of earnings in 2023, which reflects the strength of the franchise we have built and our ability to perform well in a variety of economic conditions,” said
“Given the strength of our balance sheet, with a high level of capital, liquidity, and reserves, along with a conservatively underwritten loan portfolio, we believe we are well positioned to continue delivering strong financial performance in 2024 even if the macroeconomic environment remains challenging. As the banking industry has stabilized, we are seeing more businesses looking to move their deposit relationships from the larger banks to a smaller commercial bank that provides a higher level of responsiveness and service. This is creating opportunities for us to add attractive new client relationships given the strong balance sheet, robust treasury management solutions, and superior level of service that we can provide. We have a strong deposit pipeline that we believe should result in continued growth in our client roster during 2024, further improvement in our level of profitability in the years ahead, and an increase in the value of our franchise,” said
Financial Highlights:
Profitability - three months ended
- Net income of
$5.3 million and$0.63 per diluted share, compared to$5.4 million and$0.64 per diluted share, respectively. - Revenue was
$19.9 million for both the fourth and third quarters of 2023. - Net interest income was
$18.6 million for both the fourth and third quarters of 2023. - Provision for credit losses of
$181,000 decreased$133,000 , or 42%, from$314,000 for the third quarter of 2023. - Non-interest income was
$1.3 million for both the fourth and third quarters of 2023. - Non-interest expense, excluding capitalized loan origination costs, of
$13.0 million increased$523,000 , or 4%, compared to$12.5 million for the third quarter of 2023.
Profitability - twelve months ended
- Net income of
$21.6 million and$2.56 per diluted share, compared to$21.1 million and$2.51 per diluted share, respectively. - Revenue of
$79.4 million increased$1.1 million , or 1%, compared to$78.3 million in the prior year. - Net interest income of
$74.6 million increased$3.6 million , or 5%, compared to$71.0 million for the same period in the prior year. - Provision for credit losses of
$1.3 million decreased$2.5 million , or 66%, from$3.8 million for the twelve months endedDecember 31, 2022 . - Non-interest income of
$4.9 million decreased$2.5 million , or 34%, from$7.4 million for the same period in the prior year. - Non-interest expense, excluding capitalized loan origination costs, of
$50.4 million decreased$1.6 million , or 3%, compared to$48.8 million for the twelve months endedDecember 31, 2022 .
Financial Position –
- Total assets increased by
$2.0 million , or 0%, to$1.99 billion . - Total gross loans decreased by
$13.6 million , or 1%, to$1.56 billion ; average total gross loans increased by$20.3 million to$1.57 billion . - Total deposits decreased by
$81.8 million , or 5%, to$1.63 billion ; average total deposits decreased by$18.8 million to$1.70 billion . - Other borrowings were
$75.0 million atDecember 31, 2023 compared to no balances outstanding atSeptember 30, 2023 . - Capital ratios remain healthy with a tier I leverage ratio of 9.61%, tier I capital ratio of 9.53% and total risk-based capital ratio of 13.16%.
- Book value per share of
$23.38 increased by$0.74 , or 3%. - Tangible book value per share of
$22.50 increased by$0.74 , or 3%.
Net Interest Income and Margin:
Net interest income for the quarters ended
The Company’s net interest margin for the fourth quarter of 2023 was 3.88%, compared to 3.86% for the third quarter of 2023 and 4.32% for the same period in 2022. The decrease in margin from the same period last year was primarily the result of an increase in the cost of deposits, partially offset by a more favorable mix of earning assets with higher yields.
The Company’s net interest margin for the twelve months ended
Non-Interest Income:
The Company’s non-interest income for the quarters ended
Net interest income and non-interest income comprised total revenue of
Non-Interest Expense:
The Company’s non-interest expense for the quarters ended
Non-interest expense of
The Company’s efficiency ratio, the ratio of non-interest expense to revenues, was 61.36%, 59.64%, and 49.17% for the quarters ended
Balance Sheet:
Total assets of
Total gross loans decreased by
Total deposits decreased by
At
Asset Quality:
The provision for credit losses on loans decreased to $87,000 for the fourth quarter of 2023 compared to $121,000 for the third quarter of 2023, and
Non-performing assets (“NPAs”) to total assets were 0.19% at
The allowance for credit losses on loans increased by
The allowance for credit losses on unfunded loan commitments increased by
Capital Adequacy:
At
“With our strong financial performance and prudent balance sheet management, we continued to increase our capital ratios and tangible book value per share, and during 2023, our tangible book value per share increased 14%,” said
About
Contacts:
Chief Executive Officer
seshelton@bankcbc.com
President, Chief Financial Officer and Chief Operating Officer
tsa@bankcbc.com
Use of Non-GAAP Financial Information:
This press release contains both financial measures based on GAAP and non-GAAP. Non-GAAP financial measures are used where management believes them to be helpful in understanding the Company’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure can be found in this press release, and a reconciliation to the comparable GAAP financial measure is provided on the final page of this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Forward-Looking Statements:
Statements in this news release regarding expectations and beliefs about future financial performance and financial condition, as well as trends in the Company’s business and markets are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," "outlook," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." The forward-looking statements in this news release are based on current information and on assumptions that the Company makes about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond the Company’s control. As a result of those risks and uncertainties, the Company’s actual future performance or financial results could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause the Company to make changes to future plans. Those risks and uncertainties include, but are not limited to, the risk of incurring loan losses, which is an inherent risk of the banking business; the risk that the Company will not be able to continue its internal growth rate; the risk that
Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of today's date, or to make predictions based solely on historical financial performance. The Company disclaims any obligation to update forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise, except as may be required by law.
FINANCIAL TABLES FOLLOW
| SELECTED FINANCIAL INFORMATION (UNAUDITED) - PROFITABILITY | ||||||||||||||||||||||||||
| (Dollars in Thousands, Except Per Share Data) | ||||||||||||||||||||||||||
| Change | Change | |||||||||||||||||||||||||
| QUARTERLY HIGHLIGHTS: | Q4 2023 | Q3 2023 | $ | % | Q4 2022 | $ | % | |||||||||||||||||||
| Interest income | $ | 28,405 | $ | 28,094 | $ | 311 | 1 | % | $ | 27,480 | $ | 925 | 3 | % | ||||||||||||
| Interest expense | 9,831 | 9,516 | 315 | 3 | % | 5,620 | 4,211 | 75 | % | |||||||||||||||||
| Net interest income | 18,574 | 18,578 | (4 | ) | -0 | % | 21,860 | (3,286 | ) | -15 | % | |||||||||||||||
| Provision for credit losses | 181 | 314 | (133 | ) | -42 | % | 1,100 | (919 | ) | -84 | % | |||||||||||||||
| Net interest income after provision for credit losses | 18,393 | 18,264 | 129 | 1 | % | 20,760 | (2,367 | ) | -11 | % | ||||||||||||||||
| Non-interest income | 1,339 | 1,294 | 45 | 3 | % | 1,962 | (623 | ) | -32 | % | ||||||||||||||||
| Non-interest expense | 12,218 | 11,851 | 367 | 3 | % | 11,713 | 505 | 4 | % | |||||||||||||||||
| Income before income taxes | 7,514 | 7,707 | (193 | ) | -3 | % | 11,009 | (3,495 | ) | -32 | % | |||||||||||||||
| Income tax expense | 2,173 | 2,306 | (133 | ) | -6 | % | 3,340 | (1,167 | ) | -35 | % | |||||||||||||||
| Net income | $ | 5,341 | $ | 5,401 | $ | (60 | ) | -1 | % | $ | 7,669 | $ | (2,328 | ) | -30 | % | ||||||||||
| Diluted earnings per share | $ | 0.63 | $ | 0.64 | $ | (0.01 | ) | -2 | % | $ | 0.91 | $ | (0.28 | ) | -31 | % | ||||||||||
| Net interest margin | 3.88 | % | 3.86 | % | +2 Basis Points | 4.32 | % | - | ||||||||||||||||||
| Efficiency ratio | 61.36 | % | 59.64 | % | +172 Basis Points | 49.17 | % | +1219 Basis Points | ||||||||||||||||||
| Change | ||||||||||||||||||||||||||
| YEAR-TO-DATE HIGHLIGHTS: | 2023 | 2022 | $ | % | ||||||||||||||||||||||
| Interest income | $ | 109,210 | $ | 82,278 | $ | 26,932 | 33 | % | ||||||||||||||||||
| Interest expense | 34,655 | 11,306 | 23,349 | 207 | % | |||||||||||||||||||||
| Net interest income | 74,555 | 70,972 | 3,583 | 5 | % | |||||||||||||||||||||
| Provision for credit losses | 1,297 | 3,775 | (2,478 | ) | -66 | % | ||||||||||||||||||||
| Net interest income after provision for credit losses | 73,258 | 67,197 | 6,061 | 9 | % | |||||||||||||||||||||
| Non-interest income | 4,875 | 7,374 | (2,499 | ) | -34 | % | ||||||||||||||||||||
| Non-interest expense | 47,515 | 44,665 | 2,850 | 6 | % | |||||||||||||||||||||
| Income before income taxes | 30,618 | 29,906 | 712 | 2 | % | |||||||||||||||||||||
| Income tax expense | 8,985 | 8,798 | 187 | 2 | % | |||||||||||||||||||||
| Net income | $ | 21,633 | $ | 21,108 | $ | 525 | 2 | % | ||||||||||||||||||
| Diluted earnings per share | $ | 2.56 | $ | 2.51 | $ | 0.05 | 2 | % | ||||||||||||||||||
| Net interest margin | 3.92 | % | 3.79 | % | +13 Basis Points | |||||||||||||||||||||
| Efficiency ratio | 59.82 | % | 57.01 | % | +281 Basis Points | |||||||||||||||||||||
| SELECTED FINANCIAL INFORMATION (UNAUDITED) - FINANCIAL POSITION | ||||||||||||||||||||||||||
| (Dollars in Thousands, Except Per Share Data) | ||||||||||||||||||||||||||
| Change | Change | |||||||||||||||||||||||||
| PERIOD-END HIGHLIGHTS: | Q4 2023 | Q3 2023 | $ | % | Q4 2022 | $ | % | |||||||||||||||||||
| Total assets | $ | 1,985,905 | $ | 1,983,917 | $ | 1,988 | 0 | % | $ | 2,042,215 | $ | (56,310 | ) | -3 | % | |||||||||||
| Gross loans | 1,559,533 | 1,573,115 | (13,582 | ) | -1 | % | 1,593,421 | (33,888 | ) | -2 | % | |||||||||||||||
| Deposits | 1,625,244 | 1,707,081 | (81,837 | ) | -5 | % | 1,791,740 | (166,496 | ) | -9 | % | |||||||||||||||
| Tangible equity | 189,029 | 182,673 | 6,356 | 3 | % | 164,782 | 24,247 | 15 | % | |||||||||||||||||
| Tangible book value per share | $ | 22.50 | $ | 21.76 | $ | 0.74 | 3 | % | $ | 19.78 | $ | 2.72 | 14 | % | ||||||||||||
| Tangible equity / tangible assets | 9.55 | % | 9.24 | % | +31 Basis Points | 8.10 | % | +145 Basis Points | ||||||||||||||||||
| Gross loans / total deposits | 95.96 | % | 92.15 | % | +381 Basis Points | 88.93 | % | +703 Basis Points | ||||||||||||||||||
| Noninterest-bearing deposits / total deposits | 40.44 | % | 40.23 | % | +21 Basis Points | 45.30 | % | - | ||||||||||||||||||
| QUARTERLY AVERAGE | Change | Change | ||||||||||||||||||||||||
| HIGHLIGHTS: | Q4 2023 | Q3 2023 | $ | % | Q4 2022 | $ | % | |||||||||||||||||||
| Total assets | $ | 1,984,337 | $ | 1,993,147 | $ | (8,810 | ) | -0 | % | $ | 2,088,206 | $ | (103,869 | ) | -5 | % | ||||||||||
| Total earning assets | 1,896,954 | 1,910,755 | (13,801 | ) | -1 | % | 2,007,243 | (110,289 | ) | -5 | % | |||||||||||||||
| Gross loans | 1,571,994 | 1,551,708 | 20,286 | 1 | % | 1,621,322 | (49,328 | ) | -3 | % | ||||||||||||||||
| Deposits | 1,700,625 | 1,719,416 | (18,791 | ) | -1 | % | 1,785,693 | (85,068 | ) | -5 | % | |||||||||||||||
| Tangible equity | 187,399 | 181,384 | 6,015 | 3 | % | 161,919 | 25,480 | 16 | % | |||||||||||||||||
| Tangible equity / tangible assets | 9.48 | % | 9.13 | % | +35 Basis Points | 7.78 | % | +170 Basis Points | ||||||||||||||||||
| Gross loans / total deposits | 92.44 | % | 90.25 | % | +219 Basis Points | 90.80 | % | +164 Basis Points | ||||||||||||||||||
| Noninterest-bearing deposits / total deposits | 41.46 | % | 41.59 | % | - | 44.47 | % | - | ||||||||||||||||||
| YEAR-TO-DATE AVERAGE | Change | |||||||||||||||||||||||||
| HIGHLIGHTS: | Q4 2023 | Q4 2022 | $ | % | ||||||||||||||||||||||
| Total assets | $ | 1,983,964 | $ | 1,953,168 | $ | 30,796 | 2 | % | ||||||||||||||||||
| Total earning assets | 1,900,678 | 1,871,813 | 28,865 | 2 | % | |||||||||||||||||||||
| Gross loans | 1,570,810 | 1,495,981 | 74,829 | 5 | % | |||||||||||||||||||||
| Deposits | 1,701,046 | 1,649,512 | 51,534 | 3 | % | |||||||||||||||||||||
| Tangible equity | 178,562 | 153,443 | 25,119 | 16 | % | |||||||||||||||||||||
| Tangible equity / tangible assets | 9.03 | % | 7.89 | % | +114 Basis Points | |||||||||||||||||||||
| Gross loans / total deposits | 92.34 | % | 90.69 | % | +165 Basis Points | |||||||||||||||||||||
| Noninterest-bearing deposits / total deposits | 42.14 | % | 45.61 | % | - | |||||||||||||||||||||
| SELECTED INTERIM FINANCIAL INFORMATION (UNAUDITED) - ASSET QUALITY | |||||||||||||||||||
| (Dollars in Thousands) | |||||||||||||||||||
| ALLOWANCE FOR CREDIT LOSSES (LOANS): | |||||||||||||||||||
| Balance, beginning of period | $ | 15,921 | $ | 15,722 | $ | 15,382 | $ | 17,005 | $ | 16,555 | |||||||||
| CECL adjustment | - | - | - | (1,840 | ) | - | |||||||||||||
| Provision for credit losses, quarterly | 87 | 121 | 340 | 464 | 1,100 | ||||||||||||||
| Charge-offs, quarterly | - | (156 | ) | - | (247 | ) | (650 | ) | |||||||||||
| Recoveries, quarterly | 20 | 234 | - | - | - | ||||||||||||||
| Balance, end of period | $ | 16,028 | $ | 15,921 | $ | 15,722 | $ | 15,382 | $ | 17,005 | |||||||||
| NONPERFORMING ASSETS: | |||||||||||||||||||
| Loans accounted for on a non-accrual basis | $ | 3,781 | $ | 1,236 | $ | 181 | $ | 222 | $ | 1,250 | |||||||||
| Loans with principal or interest contractually past due 90 days or more and still accruing interest | - | - | - | - | - | ||||||||||||||
| Nonperforming loans | $ | 3,781 | $ | 1,236 | $ | 181 | $ | 222 | $ | 1,250 | |||||||||
| Other real estate owned | - | - | - | - | - | ||||||||||||||
| Nonperforming assets | $ | 3,781 | $ | 1,236 | $ | 181 | $ | 222 | $ | 1,250 | |||||||||
| Nonperforming loans by asset type: | |||||||||||||||||||
| Commercial | $ | 3,728 | $ | 1,183 | $ | - | $ | - | $ | 1,028 | |||||||||
| Real estate other | - | - | - | - | - | ||||||||||||||
| Real estate construction and land | - | - | - | - | - | ||||||||||||||
| SBA | 53 | 53 | 181 | 222 | 222 | ||||||||||||||
| Other | - | - | - | - | - | ||||||||||||||
| Nonperforming loans | $ | 3,781 | $ | 1,236 | $ | 181 | $ | 222 | $ | 1,250 | |||||||||
| ASSET QUALITY: | |||||||||||||||||||
| Allowance for credit losses (loans) / gross loans | 1.03 | % | 1.01 | % | 0.99 | % | 0.95 | % | 1.07 | % | |||||||||
| Allowance for credit losses (loans) / nonperforming loans | 423.91 | % | 1288.11 | % | 8686.19 | % | 6928.83 | % | 1360.40 | % | |||||||||
| Nonperforming assets / total assets | 0.19 | % | 0.06 | % | 0.01 | % | 0.01 | % | 0.06 | % | |||||||||
| Nonperforming loans / gross loans | 0.24 | % | 0.08 | % | 0.01 | % | 0.01 | % | 0.08 | % | |||||||||
| Net quarterly charge-offs / gross loans | -0.00 | % | -0.00 | % | 0.00 | % | 0.02 | % | 0.04 | % | |||||||||
| INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||||||||||
| (Dollars in Thousands, Except Per Share Data) | |||||||||||||||||||
| Three months ended | Twelve months ended | ||||||||||||||||||
| INTEREST INCOME | |||||||||||||||||||
| Loans | $ | 24,523 | $ | 23,804 | $ | 23,972 | $ | 94,275 | $ | 74,240 | |||||||||
| Federal funds sold | 2,386 | 2,814 | 2,236 | 9,198 | 3,519 | ||||||||||||||
| Investment securities | 1,496 | 1,476 | 1,272 | 5,737 | 4,519 | ||||||||||||||
| Total interest income | 28,405 | 28,094 | 27,480 | 109,210 | 82,278 | ||||||||||||||
| INTEREST EXPENSE | |||||||||||||||||||
| Deposits | 9,234 | 8,961 | 4,536 | 31,710 | 7,810 | ||||||||||||||
| Other | 597 | 555 | 1,084 | 2,945 | 3,496 | ||||||||||||||
| Total interest expense | 9,831 | 9,516 | 5,620 | 34,655 | 11,306 | ||||||||||||||
| Net interest income | 18,574 | 18,578 | 21,860 | 74,555 | 70,972 | ||||||||||||||
| Provision for credit losses | 181 | 314 | 1,100 | 1,297 | 3,775 | ||||||||||||||
| Net interest income after provision for credit losses | 18,393 | 18,264 | 20,760 | 73,258 | 67,197 | ||||||||||||||
| NON-INTEREST INCOME | |||||||||||||||||||
| Service charges and other fees | 1,055 | 1,003 | 1,653 | 3,788 | 4,913 | ||||||||||||||
| Gain on sale of loans | - | - | - | - | 1,393 | ||||||||||||||
| Other non-interest income | 284 | 291 | 309 | 1,087 | 1,068 | ||||||||||||||
| Total non-interest income | 1,339 | 1,294 | 1,962 | 4,875 | 7,374 | ||||||||||||||
| NON-INTEREST EXPENSE | |||||||||||||||||||
| Salaries and benefits | 8,449 | 8,238 | 7,443 | 32,394 | 29,097 | ||||||||||||||
| Premises and equipment | 1,554 | 1,155 | 1,249 | 5,057 | 5,093 | ||||||||||||||
| Other | 2,215 | 2,458 | 3,021 | 10,064 | 10,475 | ||||||||||||||
| Total non-interest expense | 12,218 | 11,851 | 11,713 | 47,515 | 44,665 | ||||||||||||||
| Income before income taxes | 7,514 | 7,707 | 11,009 | 30,618 | 29,906 | ||||||||||||||
| Income taxes | 2,173 | 2,306 | 3,340 | 8,985 | 8,798 | ||||||||||||||
| NET INCOME | $ | 5,341 | $ | 5,401 | $ | 7,669 | $ | 21,633 | $ | 21,108 | |||||||||
| EARNINGS PER SHARE | |||||||||||||||||||
| Basic earnings per share | $ | 0.64 | $ | 0.64 | $ | 0.92 | $ | 2.58 | $ | 2.54 | |||||||||
| Diluted earnings per share | $ | 0.63 | $ | 0.64 | $ | 0.91 | $ | 2.56 | $ | 2.51 | |||||||||
| Average common shares outstanding | 8,398,497 | 8,390,138 | 8,330,145 | 8,374,614 | 8,306,282 | ||||||||||||||
| Average common and equivalent shares outstanding | 8,525,420 | 8,455,917 | 8,463,738 | 8,453,423 | 8,404,317 | ||||||||||||||
| PERFORMANCE MEASURES | |||||||||||||||||||
| Return on average assets | 1.07 | % | 1.08 | % | 1.46 | % | 1.09 | % | 1.08 | % | |||||||||
| Return on average equity | 10.88 | % | 11.35 | % | 17.96 | % | 11.63 | % | 13.12 | % | |||||||||
| Return on average tangible equity | 11.31 | % | 11.81 | % | 18.79 | % | 12.12 | % | 13.76 | % | |||||||||
| Efficiency ratio | 61.36 | % | 59.64 | % | 49.17 | % | 59.82 | % | 57.01 | % | |||||||||
| INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||||||||||||||
| (Dollars in Thousands) | |||||||||||||||||||
| ASSETS | |||||||||||||||||||
| Cash and due from banks | $ | 27,520 | $ | 17,128 | $ | 19,763 | $ | 15,121 | $ | 16,686 | |||||||||
| Federal funds sold | 184,834 | 181,854 | 187,904 | 198,804 | 215,696 | ||||||||||||||
| Investment securities | 145,401 | 149,244 | 151,129 | 153,769 | 155,878 | ||||||||||||||
| Loans: | |||||||||||||||||||
| Commercial | 626,615 | 633,902 | 622,270 | 656,519 | 634,535 | ||||||||||||||
| Real estate other | 849,306 | 858,611 | 856,344 | 853,431 | 848,241 | ||||||||||||||
| Real estate construction and land | 44,186 | 40,003 | 60,595 | 63,928 | 63,730 | ||||||||||||||
| SBA | 4,032 | 4,415 | 4,936 | 5,610 | 7,220 | ||||||||||||||
| Other | 35,394 | 36,184 | 39,486 | 37,775 | 39,695 | ||||||||||||||
| Loans, gross | 1,559,533 | 1,573,115 | 1,583,631 | 1,617,263 | 1,593,421 | ||||||||||||||
| Unamortized net deferred loan costs (fees) | 1,107 | 1,312 | 1,637 | 1,765 | 2,040 | ||||||||||||||
| Allowance for credit losses | (16,028 | ) | (15,921 | ) | (15,722 | ) | (15,382 | ) | (17,005 | ) | |||||||||
| Loans, net | 1,544,612 | 1,558,506 | 1,569,546 | 1,603,646 | 1,578,456 | ||||||||||||||
| Premises and equipment, net | 2,207 | 2,432 | 2,625 | 2,848 | 3,072 | ||||||||||||||
| Bank owned life insurance | 25,878 | 25,697 | 25,519 | 25,334 | 25,127 | ||||||||||||||
| 7,432 | 7,442 | 7,452 | 7,462 | 7,472 | |||||||||||||||
| Accrued interest receivable and other assets | 48,021 | 41,614 | 41,708 | 43,790 | 39,828 | ||||||||||||||
| Total assets | $ | 1,985,905 | $ | 1,983,917 | $ | 2,005,646 | $ | 2,050,774 | $ | 2,042,215 | |||||||||
| LIABILITIES | |||||||||||||||||||
| Deposits: | |||||||||||||||||||
| Demand noninterest-bearing | $ | 657,302 | $ | 686,723 | $ | 742,160 | $ | 740,650 | $ | 811,671 | |||||||||
| Demand interest-bearing | 26,715 | 28,533 | 29,324 | 30,798 | 37,815 | ||||||||||||||
| Money market and savings | 631,015 | 672,119 | 633,620 | 616,864 | 671,016 | ||||||||||||||
| Time | 310,212 | 319,706 | 333,192 | 329,298 | 271,238 | ||||||||||||||
| Total deposits | 1,625,244 | 1,707,081 | 1,738,296 | 1,717,610 | 1,791,740 | ||||||||||||||
| Junior subordinated debt securities | 54,291 | 54,256 | 54,221 | 54,186 | 54,152 | ||||||||||||||
| Other borrowings | 75,000 | - | - | 75,000 | - | ||||||||||||||
| Accrued interest payable and other liabilities | 34,909 | 32,465 | 28,894 | 25,417 | 24,069 | ||||||||||||||
| Total liabilities | 1,789,444 | 1,793,802 | 1,821,411 | 1,872,213 | 1,869,961 | ||||||||||||||
| SHAREHOLDERS' EQUITY | |||||||||||||||||||
| Common stock | 113,227 | 112,656 | 112,167 | 111,609 | 111,257 | ||||||||||||||
| Retained earnings | 84,165 | 78,824 | 73,423 | 68,082 | 62,297 | ||||||||||||||
| Accumulated other comprehensive loss | (931 | ) | (1,365 | ) | (1,355 | ) | (1,130 | ) | (1,300 | ) | |||||||||
| Total shareholders' equity | 196,461 | 190,115 | 184,235 | 178,561 | 172,254 | ||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,985,905 | $ | 1,983,917 | $ | 2,005,646 | $ | 2,050,774 | $ | 2,042,215 | |||||||||
| - | |||||||||||||||||||
| CAPITAL ADEQUACY | |||||||||||||||||||
| Tier I leverage ratio | 9.61 | % | 9.27 | % | 9.01 | % | 8.76 | % | 7.98 | % | |||||||||
| Tier I risk-based capital ratio | 9.53 | % | 9.34 | % | 9.07 | % | 8.54 | % | 8.23 | % | |||||||||
| Total risk-based capital ratio | 13.16 | % | 13.00 | % | 12.73 | % | 12.08 | % | 11.77 | % | |||||||||
| Total equity/ total assets | 9.89 | % | 9.58 | % | 9.19 | % | 8.71 | % | 8.43 | % | |||||||||
| Book value per share | $ | 23.38 | $ | 22.64 | $ | 21.98 | $ | 21.37 | $ | 20.67 | |||||||||
| Common shares outstanding | 8,402,482 | 8,395,483 | 8,383,772 | 8,355,378 | 8,332,479 | ||||||||||||||
| INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED) | |||||||||||||||||||
| (Dollars in Thousands) | |||||||||||||||||||
| Three months ended | Three months ended | ||||||||||||||||||
| 2023 | 2023 | ||||||||||||||||||
| Yields | Interest | Yields | Interest | ||||||||||||||||
| Average | or | Income/ | Average | or | Income/ | ||||||||||||||
| Balance | Rates | Expense | Balance | Rates | Expense | ||||||||||||||
| ASSETS | |||||||||||||||||||
| Interest earning assets: | |||||||||||||||||||
| Loans (1) | $ | 1,571,994 | 6.19 | % | $ | 24,523 | $ | 1,551,708 | 6.09 | % | $ | 23,804 | |||||||
| Federal funds sold | 177,331 | 5.34 | % | 2,386 | 208,725 | 5.35 | % | 2,814 | |||||||||||
| Investment securities | 147,629 | 4.02 | % | 1,496 | 150,322 | 3.90 | % | 1,476 | |||||||||||
| Total interest earning assets | 1,896,954 | 5.94 | % | 28,405 | 1,910,755 | 5.83 | % | 28,094 | |||||||||||
| Noninterest-earning assets: | |||||||||||||||||||
| Cash and due from banks | 20,310 | 20,351 | |||||||||||||||||
| All other assets (2) | 67,073 | 62,041 | |||||||||||||||||
| TOTAL | $ | 1,984,337 | $ | 1,993,147 | |||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||
| Deposits: | |||||||||||||||||||
| Demand | $ | 28,678 | 0.29 | % | 21 | $ | 28,766 | 0.33 | % | 24 | |||||||||
| Money market and savings | 638,623 | 3.02 | % | 4,857 | 642,909 | 2.95 | % | 4,775 | |||||||||||
| Time | 328,270 | 5.26 | % | 4,356 | 332,662 | 4.96 | % | 4,162 | |||||||||||
| Other | 56,715 | 4.18 | % | 597 | 54,235 | 4.06 | % | 555 | |||||||||||
| Total interest-bearing liabilities | 1,052,286 | 3.71 | % | 9,831 | 1,058,572 | 3.57 | % | 9,516 | |||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||
| Demand deposits | 705,054 | 715,079 | |||||||||||||||||
| Accrued expenses and other liabilities | 32,161 | 30,665 | |||||||||||||||||
| Shareholders' equity | 194,836 | 188,831 | |||||||||||||||||
| TOTAL | $ | 1,984,337 | $ | 1,993,147 | |||||||||||||||
| Net interest income and margin (3) | 3.88 | % | $ | 18,574 | 3.86 | % | $ | 18,578 | |||||||||||
| (1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of net deferred loan costs of | |||||||||||||||||||
| (2) Other noninterest-earning assets includes the allowance for credit losses of | |||||||||||||||||||
| (3) Net interest margin is net interest income divided by total interest-earning assets. | |||||||||||||||||||
| INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED) | |||||||||||||||||
| (Dollars in Thousands) | |||||||||||||||||
| Three months ended | |||||||||||||||||
| 2023 | 2022 | ||||||||||||||||
| Average Balance | Yields or Rates | Interest Income/Expense | Average Balance | Yields or Rates | Interest Income/Expense | ||||||||||||
| ASSETS | |||||||||||||||||
| Interest earning assets: | |||||||||||||||||
| Loans (1) | $ | 1,571,994 | 6.19 | % | $ | 24,523 | $ | 1,621,322 | 5.87 | % | $ | 23,972 | |||||
| Federal funds sold | 177,331 | 5.34 | % | 2,386 | 229,209 | 3.87 | % | 2,236 | |||||||||
| Investment securities | 147,629 | 4.02 | % | 1,496 | 156,712 | 3.22 | % | 1,272 | |||||||||
| Total interest earning assets | 1,896,954 | 5.94 | % | 28,405 | 2,007,243 | 5.43 | % | 27,480 | |||||||||
| Noninterest-earning assets: | |||||||||||||||||
| Cash and due from banks | 20,310 | 20,692 | |||||||||||||||
| All other assets (2) | 67,073 | 60,271 | |||||||||||||||
| TOTAL | $ | 1,984,337 | $ | 2,088,206 | |||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||
| Deposits: | |||||||||||||||||
| Demand | $ | 28,678 | 0.29 | % | 21 | $ | 39,582 | 0.06 | % | $ | 6 | ||||||
| Money market and savings | 638,623 | 3.02 | % | 4,857 | 647,213 | 1.45 | % | 2,359 | |||||||||
| Time | 328,270 | 5.26 | % | 4,356 | 304,784 | 2.83 | % | 2,171 | |||||||||
| Other | 56,715 | 4.18 | % | 597 | 110,650 | 3.89 | % | 1,084 | |||||||||
| Total interest-bearing liabilities | 1,052,286 | 3.71 | % | 9,831 | 1,102,229 | 2.02 | % | 5,620 | |||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||
| Demand deposits | 705,054 | 794,114 | |||||||||||||||
| Accrued expenses and other liabilities | 32,161 | 22,467 | |||||||||||||||
| Shareholders' equity | 194,836 | 169,396 | |||||||||||||||
| TOTAL | $ | 1,984,337 | $ | 2,088,206 | |||||||||||||
| Net interest income and margin (3) | 3.88 | % | $ | 18,574 | 4.32 | % | $ | 21,860 | |||||||||
| (1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of net deferred loan (costs) fees of | |||||||||||||||||
| (2) Other noninterest-earning assets includes the allowance for credit losses of | |||||||||||||||||
| (3) Net interest margin is net interest income divided by total interest-earning assets. | |||||||||||||||||
| INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED) | ||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||
| Twelve months ended | ||||||||||||||||||
| 2023 | 2022 | |||||||||||||||||
| Average Balance | Yields or Rates | Interest Income/Expense | Average Balance | Yields or Rates | Interest Income/Expense | |||||||||||||
| ASSETS | ||||||||||||||||||
| Interest earning assets: | ||||||||||||||||||
| Loans (1) | $ | 1,570,810 | 6.00 | % | $ | 94,275 | $ | 1,495,981 | 4.96 | % | $ | 74,240 | ||||||
| Federal funds sold | 178,540 | 5.15 | % | 9,198 | 220,084 | 1.60 | % | 3,519 | ||||||||||
| Investment securities | 151,328 | 3.79 | % | 5,737 | 155,748 | 2.90 | % | 4,519 | ||||||||||
| Total interest earning assets | 1,900,678 | 5.75 | % | 109,210 | 1,871,813 | 4.40 | % | 82,278 | ||||||||||
| Noninterest-earning assets: | ||||||||||||||||||
| Cash and due from banks | 19,500 | 19,838 | ||||||||||||||||
| All other assets (2) | 63,786 | 61,517 | ||||||||||||||||
| TOTAL | $ | 1,983,964 | $ | 1,953,168 | ||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| Deposits: | ||||||||||||||||||
| Demand | $ | 30,436 | 0.21 | % | 64 | $ | 40,054 | 0.08 | % | 31 | ||||||||
| Money market and savings | 629,419 | 2.63 | % | 16,529 | 651,429 | 0.70 | % | 4,544 | ||||||||||
| Time | 324,439 | 4.66 | % | 15,117 | 205,681 | 1.57 | % | 3,235 | ||||||||||
| Other | 67,984 | 4.33 | % | 2,945 | 121,464 | 2.88 | % | 3,496 | ||||||||||
| Total interest-bearing liabilities | 1,052,278 | 3.29 | % | 34,655 | 1,018,628 | 1.11 | % | 11,306 | ||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||
| Demand deposits | 716,752 | 752,348 | ||||||||||||||||
| Accrued expenses and other liabilities | 28,920 | 21,256 | ||||||||||||||||
| Shareholders' equity | 186,014 | 160,936 | ||||||||||||||||
| TOTAL | $ | 1,983,964 | $ | 1,953,168 | ||||||||||||||
| Net interest income and margin (3) | 3.92 | % | $ | 74,555 | 3.79 | % | $ | 70,972 | ||||||||||
| (1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of net deferred loan (costs) fees of | ||||||||||||||||||
| (2) Other noninterest-earning assets includes the allowance for loan losses of | ||||||||||||||||||
| (3) Net interest margin is net interest income divided by total interest-earning assets. | ||||||||||||||||||
| INTERIM CONSOLIDATED NON GAAP DATA (UNAUDITED) | ||||||||||||||
| (Dollars in Thousands, Except Per Share Data) | ||||||||||||||
| REVENUE: | Three months ended | Twelve months ended | ||||||||||||
| Net interest income | $ | 18,574 | $ | 18,578 | $ | 21,860 | $ | 74,555 | $ | 70,972 | ||||
| Non-interest income | 1,339 | 1,294 | 1,962 | 4,875 | 7,374 | |||||||||
| Total revenue | $ | 19,913 | $ | 19,872 | $ | 23,822 | $ | 79,430 | $ | 78,346 | ||||
| NON-INTEREST EXPENSE: | Three months ended | Twelve months ended | ||||||||||||
| Total non-interest expense | $ | 12,218 | $ | 11,851 | $ | 11,713 | $ | 47,515 | $ | 44,665 | ||||
| Total capitalized loan origination costs | 824 | 668 | 960 | 2,837 | 4,119 | |||||||||
| Total operating expenses, before capitalization of loan origination costs | $ | 13,042 | $ | 12,519 | $ | 12,673 | $ | 50,352 | $ | 48,784 | ||||
| TANGIBLE ASSETS: | ||||||||||||||
| Total assets | $ | 1,985,905 | $ | 1,983,917 | $ | 2,005,646 | $ | 2,050,774 | $ | 2,042,215 | ||||
| 7,432 | 7,442 | 7,452 | 7,462 | 7,472 | ||||||||||
| Tangible assets | $ | 1,978,473 | $ | 1,976,475 | $ | 1,998,194 | $ | 2,043,312 | $ | 2,034,743 | ||||
| TANGIBLE EQUITY: | ||||||||||||||
| Total shareholders' equity | $ | 196,461 | $ | 190,115 | $ | 184,235 | $ | 178,561 | $ | 172,254 | ||||
| 7,432 | 7,442 | 7,452 | 7,462 | 7,472 | ||||||||||
| Tangible equity | $ | 189,029 | $ | 182,673 | $ | 176,783 | $ | 171,099 | $ | 164,782 | ||||
| BOOK VALUE PER SHARE: | ||||||||||||||
| Total shareholders' equity | $ | 196,461 | $ | 190,115 | $ | 184,235 | $ | 178,561 | $ | 172,254 | ||||
| Common shares outstanding | 8,402,482 | 8,395,483 | 8,383,772 | 8,355,378 | 8,332,479 | |||||||||
| Total shareholders' equity / common shares outstanding | $ | 23.38 | $ | 22.64 | $ | 21.98 | $ | 21.37 | $ | 20.67 | ||||
| TANGIBLE BOOK VALUE PER SHARE: | ||||||||||||||
| Tangible equity | $ | 189,029 | $ | 182,673 | $ | 176,783 | $ | 171,099 | $ | 164,782 | ||||
| Common shares outstanding | 8,402,482 | 8,395,483 | 8,383,772 | 8,355,378 | 8,332,479 | |||||||||
| Tangible equity / common shares outstanding | $ | 22.50 | $ | 21.76 | $ | 21.09 | $ | 20.48 | $ | 19.78 | ||||
2024 GlobeNewswire, Inc., source
