For the first six months of 2021, net income totaled
Our return on average assets (“ROA”) was 0.75% and our return on average equity (“ROE”) was 9.05% for the second quarter of 2021. These metrics were 1.01% and 11.81% for the first quarter of 2021, respectively, and 1.10% and 11.03% for the second quarter of 2020, respectively. For the first six months of 2021, our ROA was 0.88% and our ROE was 10.42% compared to 0.85% and 8.12%, respectively, for the same period of 2020.
QUARTER HIGHLIGHTS
- Net interest income grew 6% sequentially driven by strong loan growth and higher SBA PPP fees
- Period-end loan balances (net of SBA PPP balances) grew by
$74 million , or 4.0% sequentially- Remaining SBA PPP balances and deferred fees totaled
$80 million and$3.5 million , respectively, at period-end
- Remaining SBA PPP balances and deferred fees totaled
- Strong credit quality metrics and a net loan loss recovery drove a negative credit loss provision of
$0.6 million - Average deposit balances grew
$148 million , or 4.6% sequentially and reflected additional stimulus inflows as well as strong core deposit growth - Noninterest expense increased
$1.6 million and included a partial pension settlement charge of$2.0 million – controllable expenses at CCB continued to be well managed Capital City Home Loans (“CCHL”) contributed$0.05 per share
“Challenges remain, but Capital City produced solid results for both the second quarter and first half of 2021,” said
COVID-19 Update
- We continue to closely monitor conditions including the rising case count in some of our communities.
- We have established a tentative return to work date for all associates, but we will adjust as necessary depending on changing conditions.
- All of our banking offices have returned to normal banking hours and lobby services.
- We are adhering to national guidelines and local safety ordinances to protect both clients and associates.
- We continue to support clients with the Small Business Administration Payment Protection Program (“SBA PPP”) by actively assisting with the Round 1 and 2 forgiveness process.
Discussion of Operating Results
Net Interest Income/Net Interest Margin
Tax-equivalent net interest income for the second quarter of 2021 totaled
Our net interest margin for the second quarter of 2021 was 2.89%, an increase of three basis points over the first quarter of 2021 and a decrease of 52 basis points from the second quarter of 2020. Compared to the first quarter of 2021, the increase was driven by higher SBA PPP loan fees. Compared to the second quarter of 2020, the decrease was primarily attributable to downward re-pricing of earning assets and significant growth in overnight funds (driven by deposit inflows) which negatively impacts our margin percentage. For the first six months of 2021, the net interest margin decreased 72 basis points to 2.87% generally reflective of downward re-pricing of our earning assets (variable/adjustable rate loans and securities portfolio) partially offset by a lower cost of funds and higher SBA PPP loan fees. Our net interest margin for the second quarter of 2021, excluding the impact of overnight funds in excess of
Provision for Credit Loss
We recorded a negative provision for credit losses of
Noninterest Income and Noninterest Expense
Noninterest income for the second quarter of 2021 totaled
Noninterest expense for the second quarter of 2021 totaled
Income Taxes
We realized income tax expense of
Discussion of Financial Condition
Earning Assets
Average earning assets totaled
We maintained an average net overnight funds (deposits with banks plus FED funds sold less FED funds purchased) sold position of
Average loans held for investment (HFI) decreased
Allowance for Credit Losses
At
Credit Quality
Nonperforming assets (nonaccrual loans and OREO) totaled
Funding (Deposits/Debt)
Average total deposits were
Average short-term borrowings decreased
Capital
Shareowners’ equity was
At
About
FORWARD-LOOKING STATEMENTS
Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause our future results to differ materially. The following factors, among others, could cause our actual results to differ: the magnitude and duration of the COVID-19 pandemic and its impact on the global economy and financial market conditions and our business, results of operations and financial condition, including the impact of our participation in government programs related to COVID-19; the accuracy of the our financial statement estimates and assumptions; legislative or regulatory changes; fluctuations in inflation, interest rates, or monetary policies; the effects of security breaches and computer viruses that may affect our computer systems or fraud related to debit card products; changes in consumer spending and savings habits; our growth and profitability; the strength of the
USE OF NON-GAAP FINANCIAL MEASURES
We present a tangible common equity ratio and a tangible book value per diluted share that removes the effect of goodwill and other intangibles resulting from merger and acquisition activity. We believe these measures are useful to investors because it allows investors to more easily compare our capital adequacy to other companies in the industry.
The GAAP to non-GAAP reconciliations are provided below.
(Dollars in Thousands, except per share data) | ||||||||||||||||
Shareowners' Equity (GAAP) | $ | 335,880 | $ | 324,426 | $ | 320,837 | $ | 339,425 | $ | 335,057 | ||||||
Less: | 93,333 | 89,095 | 89,095 | 89,095 | 89,095 | |||||||||||
Tangible Shareowners' Equity (non-GAAP) | A | 242,547 | 235,331 | 231,742 | 250,330 | 245,962 | ||||||||||
Total Assets (GAAP) | 4,011,459 | 3,929,884 | 3,798,071 | 3,587,041 | 3,499,524 | |||||||||||
Less: | 93,333 | 89,095 | 89,095 | 89,095 | 89,095 | |||||||||||
Tangible Assets (non-GAAP) | B | $ | 3,918,126 | $ | 3,840,789 | $ | 3,708,976 | $ | 3,497,946 | $ | 3,410,429 | |||||
Tangible Common Equity Ratio (non-GAAP) | A/B | 6.19 | % | 6.13 | % | 6.25 | % | 7.16 | % | 7.21 | % | |||||
Actual Diluted Shares Outstanding (GAAP) | C | 16,901,375 | 16,875,719 | 16,844,997 | 16,800,563 | 16,821,743 | ||||||||||
Tangible Book Value per Diluted Share (non-GAAP) | A/C | $ | 14.35 | $ | 13.94 | $ | 13.76 | $ | 14.90 | $ | 14.62 |
EARNINGS HIGHLIGHTS | ||||||||||||||
Unaudited | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||
EARNINGS | ||||||||||||||
Net Income Attributable to Common Shareowners | $ | 7,427 | $ | 9,506 | $ | 9,146 | $ | 16,933 | $ | 13,433 | ||||
Diluted Net Income Per Share | $ | 0.44 | $ | 0.56 | $ | 0.55 | $ | 1.00 | $ | 0.80 | ||||
PERFORMANCE | ||||||||||||||
Return on Average Assets | 0.75 | % | 1.01 | % | 1.10 | % | 0.88 | % | 0.85 | % | ||||
Return on Average Equity | 9.05 | 11.81 | 11.03 | 10.42 | 8.12 | |||||||||
Net Interest Margin | 2.89 | 2.85 | 3.41 | 2.87 | 3.59 | |||||||||
Noninterest Income as % of Operating Revenue | 50.47 | 54.90 | 54.26 | 52.73 | 47.13 | |||||||||
Efficiency Ratio | 80.18 | % | 74.36 | % | 66.90 | % | 77.22 | % | 70.30 | % | ||||
CAPITAL ADEQUACY | ||||||||||||||
Tier 1 Capital | 15.44 | % | 16.08 | % | 16.59 | % | 15.44 | % | 16.59 | % | ||||
Total Capital | 16.48 | 17.20 | 17.60 | 16.48 | 17.60 | |||||||||
Leverage | 8.84 | 8.97 | 10.12 | 8.84 | 10.12 | |||||||||
Common Equity Tier 1 | 13.14 | 13.63 | 14.01 | 13.14 | 14.01 | |||||||||
Tangible Common Equity (1) | 6.19 | 6.13 | 7.21 | 6.19 | 7.21 | |||||||||
Equity to Assets | 8.37 | % | 8.26 | % | 9.57 | % | 8.37 | % | 9.57 | % | ||||
ASSET QUALITY | ||||||||||||||
Allowance as % of Non-Performing Loans | 433.93 | % | 410.78 | % | 322.37 | % | 433.93 | % | 322.37 | % | ||||
Allowance as a % of Loans HFI | 1.10 | 1.07 | 1.11 | 1.10 | 1.11 | |||||||||
Net Charge-Offs as % of Average Loans HFI | (0.08 | ) | (0.10 | ) | 0.05 | (0.08 | ) | 0.14 | ||||||
Nonperforming Assets as % of Loans HFI and OREO | 0.31 | 0.27 | 0.40 | 0.31 | 0.40 | |||||||||
Nonperforming Assets as % of Total Assets | 0.16 | % | 0.14 | % | 0.23 | % | 0.16 | % | 0.23 | % | ||||
STOCK PERFORMANCE | ||||||||||||||
High | $ | 27.39 | $ | 28.98 | $ | 23.99 | $ | 28.98 | $ | 30.62 | ||||
Low | 24.55 | 21.42 | 16.16 | 21.42 | 15.61 | |||||||||
Close | $ | 25.79 | $ | 26.02 | $ | 20.95 | $ | 25.79 | $ | 20.95 | ||||
Average Daily Trading Volume | 28,958 | 30,303 | 49,569 | 29,620 | 45,089 | |||||||||
(1) Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 5. |
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION | |||||||||||||||
Unaudited | |||||||||||||||
2021 | 2020 | ||||||||||||||
(Dollars in thousands) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | ||||||||||
ASSETS | |||||||||||||||
Cash and Due From Banks | $ | 78,894 | $ | 73,973 | $ | 67,919 | $ | 76,509 | $ | 75,155 | |||||
Funds Sold and Interest Bearing Deposits | 766,920 | 851,910 | 860,630 | 626,104 | 513,273 | ||||||||||
Total Cash and Cash Equivalents | 845,814 | 925,883 | 928,549 | 702,613 | 588,428 | ||||||||||
Investment Securities Available for Sale | 480,890 | 406,245 | 324,870 | 328,253 | 341,180 | ||||||||||
Investment Securities Held to Maturity | 325,559 | 199,109 | 169,939 | 202,593 | 232,178 | ||||||||||
| 806,449 | 605,354 | 494,809 | 530,846 | 573,358 | ||||||||||
Loans Held for Sale ("HFS") | 80,821 | 82,081 | 114,039 | 116,561 | 76,610 | ||||||||||
Loans Held for Investment ("HFI"): | |||||||||||||||
Commercial, Financial, & Agricultural | 292,953 | 413,819 | 393,930 | 402,997 | 421,270 | ||||||||||
Real Estate - Construction | 149,884 | 138,104 | 135,831 | 125,804 | 117,794 | ||||||||||
Real Estate - Commercial | 707,599 | 669,158 | 648,393 | 656,064 | 662,434 | ||||||||||
Real Estate - Residential | 362,018 | 358,849 | 342,664 | 335,713 | 353,831 | ||||||||||
Real Estate - Home Equity | 190,078 | 202,099 | 205,479 | 197,363 | 194,479 | ||||||||||
Consumer | 298,464 | 267,666 | 269,520 | 268,393 | 266,417 | ||||||||||
Other Loans | 6,439 | 7,082 | 9,879 | 10,488 | 4,883 | ||||||||||
Overdrafts | 1,227 | 950 | 730 | 1,339 | 1,069 | ||||||||||
Total Loans Held for Investment | 2,008,662 | 2,057,727 | 2,006,426 | 1,998,161 | 2,022,177 | ||||||||||
Allowance for Credit Losses | (22,175 | ) | (22,026 | ) | (23,816 | ) | (23,137 | ) | (22,457 | ) | |||||
Loans Held for Investment, Net | 1,986,487 | 2,035,701 | 1,982,610 | 1,975,024 | 1,999,720 | ||||||||||
Premises and Equipment, Net | 85,745 | 86,370 | 86,791 | 87,192 | 87,972 | ||||||||||
93,333 | 89,095 | 89,095 | 89,095 | 89,095 | |||||||||||
Other Real Estate Owned | 1,192 | 110 | 808 | 1,227 | 1,059 | ||||||||||
Other Assets | 111,618 | 105,290 | 101,370 | 84,483 | 83,282 | ||||||||||
Total Other Assets | 291,888 | 280,865 | 278,064 | 261,997 | 261,408 | ||||||||||
Total Assets | $ | 4,011,459 | $ | 3,929,884 | $ | 3,798,071 | $ | 3,587,041 | $ | 3,499,524 | |||||
LIABILITIES | |||||||||||||||
Deposits: | |||||||||||||||
Noninterest Bearing Deposits | $ | 1,552,864 | $ | 1,473,891 | $ | 1,328,809 | $ | 1,378,314 | $ | 1,377,033 | |||||
NOW Accounts | 970,705 | 993,571 | 1,046,408 | 827,506 | 808,244 | ||||||||||
Money Market Accounts | 280,805 | 269,041 | 266,649 | 247,823 | 240,754 | ||||||||||
Regular Savings Accounts | 539,477 | 518,373 | 474,100 | 451,944 | 423,924 | ||||||||||
Certificates of Deposit | 103,070 | 103,232 | 101,594 | 103,859 | 105,041 | ||||||||||
Total Deposits | 3,446,921 | 3,358,108 | 3,217,560 | 3,009,446 | 2,954,996 | ||||||||||
Short-Term Borrowings | 47,200 | 55,687 | 79,654 | 90,936 | 63,958 | ||||||||||
Subordinated Notes Payable | 52,887 | 52,887 | 52,887 | 52,887 | 52,887 | ||||||||||
Other Long-Term Borrowings | 1,720 | 1,829 | 3,057 | 5,268 | 5,583 | ||||||||||
Other Liabilities | 105,534 | 109,487 | 102,076 | 71,880 | 75,702 | ||||||||||
Total Liabilities | 3,654,262 | 3,577,998 | 3,455,234 | 3,230,417 | 3,153,126 | ||||||||||
Temporary Equity | 21,317 | 27,460 | 22,000 | 17,199 | 11,341 | ||||||||||
SHAREOWNERS' EQUITY | |||||||||||||||
Common Stock | 169 | 169 | 168 | 168 | 168 | ||||||||||
33,560 | 32,804 | 32,283 | 31,425 | 31,575 | |||||||||||
Retained Earnings | 345,574 | 335,324 | 332,528 | 333,545 | 328,570 | ||||||||||
Accumulated Other Comprehensive Loss, Net of Tax | (43,423 | ) | (43,871 | ) | (44,142 | ) | (25,713 | ) | (25,256 | ) | |||||
Total Shareowners' Equity | 335,880 | 324,426 | 320,837 | 339,425 | 335,057 | ||||||||||
Total Liabilities, Temporary Equity and Shareowners' Equity | $ | 4,011,459 | $ | 3,929,884 | $ | 3,798,071 | $ | 3,587,041 | $ | 3,499,524 | |||||
OTHER BALANCE SHEET DATA | |||||||||||||||
Earning Assets | $ | 3,662,852 | $ | 3,597,071 | $ | 3,475,904 | $ | 3,271,672 | $ | 3,185,418 | |||||
Interest Bearing Liabilities | 1,995,864 | 1,994,620 | 2,024,349 | 1,780,223 | 1,700,391 | ||||||||||
Book Value Per Diluted Share | $ | 19.87 | $ | 19.22 | $ | 19.05 | $ | 20.20 | $ | 19.92 | |||||
Tangible Book Value Per Diluted Share(1) | 14.35 | 13.94 | 13.76 | 14.90 | 14.62 | ||||||||||
Actual Basic Shares Outstanding | 16,874 | 16,852 | 16,791 | 16,761 | 16,780 | ||||||||||
Actual Diluted Shares Outstanding | 16,901 | 16,876 | 16,845 | 16,801 | 16,822 | ||||||||||
(1) Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 5. |
CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||
(Dollars in thousands, except per share data) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | 2021 | 2020 | ||||||||||||||
INTEREST INCOME | |||||||||||||||||||||
Interest and Fees on Loans | $ | 24,582 | $ | 23,350 | $ | 23,878 | $ | 23,594 | $ | 23,687 | $ | 47,932 | $ | 47,280 | |||||||
2,054 | 1,883 | 2,096 | 2,426 | 2,737 | 3,937 | 5,752 | |||||||||||||||
Funds Sold | 200 | 213 | 180 | 146 | 88 | 413 | 845 | ||||||||||||||
Total Interest Income | 26,836 | 25,446 | 26,154 | 26,166 | 26,512 | 52,282 | 53,877 | ||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||||
Deposits | 208 | 208 | 201 | 190 | 218 | 416 | 1,157 | ||||||||||||||
Short-Term Borrowings | 324 | 412 | 639 | 498 | 421 | 736 | 553 | ||||||||||||||
Subordinated Notes Payable | 308 | 307 | 311 | 316 | 374 | 615 | 845 | ||||||||||||||
Other Long-Term Borrowings | 16 | 21 | 30 | 40 | 41 | 37 | 91 | ||||||||||||||
Total Interest Expense | 856 | 948 | 1,181 | 1,044 | 1,054 | 1,804 | 2,646 | ||||||||||||||
Net Interest Income | 25,980 | 24,498 | 24,973 | 25,122 | 25,458 | 50,478 | 51,231 | ||||||||||||||
Provision for Credit Losses | (571 | ) | (982 | ) | 1,342 | 1,308 | 2,005 | (1,553 | ) | 6,995 | |||||||||||
Net Interest Income after Provision for Credit Losses | 26,551 | 25,480 | 23,631 | 23,814 | 23,453 | 52,031 | 44,236 | ||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||||
Deposit Fees | 4,236 | 4,271 | 4,713 | 4,316 | 3,756 | 8,507 | 8,771 | ||||||||||||||
3,998 | 3,618 | 3,462 | 3,389 | 3,142 | 7,616 | 6,193 | |||||||||||||||
Wealth Management Fees | 3,274 | 3,090 | 3,069 | 2,808 | 2,554 | 6,364 | 5,158 | ||||||||||||||
Mortgage Banking Revenues | 13,217 | 17,125 | 17,711 | 22,983 | 19,397 | 30,342 | 22,650 | ||||||||||||||
Other | 1,748 | 1,722 | 1,568 | 1,469 | 1,350 | 3,470 | 2,905 | ||||||||||||||
Total Noninterest Income | 26,473 | 29,826 | 30,523 | 34,965 | 30,199 | 56,299 | 45,677 | ||||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||||
Compensation | 25,378 | 26,064 | 26,722 | 26,164 | 23,658 | 51,442 | 43,394 | ||||||||||||||
Occupancy, Net | 5,973 | 5,967 | 5,976 | 5,906 | 5,798 | 11,940 | 10,777 | ||||||||||||||
Other Real Estate, Net | (270 | ) | (118 | ) | 567 | 219 | 116 | (388 | ) | (682 | ) | ||||||||||
Pension Adjustment | 2,000 | - | - | - | - | 2,000 | - | ||||||||||||||
Other | 9,042 | 8,563 | 8,083 | 8,053 | 7,731 | 17,605 | 14,783 | ||||||||||||||
Total Noninterest Expense | 42,123 | 40,476 | 41,348 | 40,342 | 37,303 | 82,599 | 68,272 | ||||||||||||||
OPERATING PROFIT | 10,901 | 14,830 | 12,806 | 18,437 | 16,349 | 25,731 | 21,641 | ||||||||||||||
Income Tax Expense | 2,059 | 2,787 | 2,833 | 3,165 | 2,950 | 4,846 | 4,232 | ||||||||||||||
Net Income | 8,842 | 12,043 | 9,973 | 15,272 | 13,399 | 20,885 | 17,409 | ||||||||||||||
Pre-Tax Income Attributable to Noncontrolling Interest | (1,415 | ) | (2,537 | ) | (2,227 | ) | (4,875 | ) | (4,253 | ) | (3,952 | ) | (3,976 | ) | |||||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS | $ | 7,427 | $ | 9,506 | $ | 7,746 | $ | 10,397 | $ | 9,146 | $ | 16,933 | $ | 13,433 | |||||||
PER COMMON SHARE | |||||||||||||||||||||
Basic Net Income | $ | 0.44 | $ | 0.56 | $ | 0.46 | $ | 0.62 | $ | 0.55 | $ | 1.00 | $ | 0.80 | |||||||
Diluted Net Income | 0.44 | 0.56 | 0.46 | 0.62 | 0.55 | 1.00 | 0.80 | ||||||||||||||
Cash Dividend | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.14 | $ | 0.14 | $ | 0.30 | $ | 0.28 | |||||||
AVERAGE SHARES | |||||||||||||||||||||
Basic | 16,858 | 16,838 | 16,763 | 16,771 | 16,797 | 16,848 | 16,803 | ||||||||||||||
Diluted | 16,885 | 16,862 | 16,817 | 16,810 | 16,839 | 16,874 | 16,844 |
ALLOWANCE FOR CREDIT LOSSES ("ACL") | |||||||||||||||||||||
AND RISK ELEMENT ASSETS | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||
(Dollars in thousands, except per share data) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | 2021 | 2020 | ||||||||||||||
ACL - HELD FOR INVESTMENT | |||||||||||||||||||||
Balance at Beginning of Period | $ | 22,026 | $ | 23,816 | $ | 23,137 | $ | 22,457 | $ | 21,083 | $ | 23,816 | $ | 13,905 | |||||||
Impact of Adopting ASC 326 (CECL) | - | - | - | - | - | - | 3,269 | ||||||||||||||
Provision for Credit Losses | (184 | ) | (2,312 | ) | 1,165 | 1,265 | 1,615 | (2,496 | ) | 6,605 | |||||||||||
Net Charge-Offs (Recoveries) | (333 | ) | (522 | ) | 486 | 585 | 241 | (855 | ) | 1,322 | |||||||||||
Balance at End of Period | $ | 22,175 | $ | 22,026 | $ | 23,816 | $ | 23,137 | $ | 22,457 | $ | 22,175 | $ | 22,457 | |||||||
As a % of Loans HFI | 1.10 | % | 1.07 | % | 1.19 | % | 1.16 | % | 1.11 | % | 1.10 | % | 1.11 | % | |||||||
As a % of Nonperforming Loans | 433.93 | % | 410.78 | % | 405.66 | % | 420.30 | % | 322.37 | % | 433.93 | % | 322.37 | % | |||||||
ACL - UNFUNDED COMMITMENTS | |||||||||||||||||||||
Balance at Beginning of Period | 2,974 | $ | 1,644 | $ | 1,467 | $ | 1,424 | $ | 1,033 | $ | 1,644 | $ | 157 | ||||||||
Impact of Adopting ASC 326 (CECL) | - | - | - | - | - | - | 876 | ||||||||||||||
Provision for Credit Losses | (387 | ) | 1,330 | 177 | 43 | 391 | 943 | 391 | |||||||||||||
Balance at End of Period(1) | 2,587 | 2,974 | 1,644 | 1,467 | 1,424 | 2,587 | 1,424 | ||||||||||||||
CHARGE-OFFS | |||||||||||||||||||||
Commercial, Financial and Agricultural | $ | 32 | $ | 69 | $ | 104 | $ | 137 | $ | 186 | $ | 101 | $ | 548 | |||||||
Real Estate - Construction | - | - | - | - | - | - | - | ||||||||||||||
Real Estate - Commercial | - | - | - | 17 | - | - | 11 | ||||||||||||||
Real Estate - Residential | 65 | 6 | 38 | 1 | 1 | 71 | 111 | ||||||||||||||
Real Estate - Home Equity | 74 | 5 | 10 | 58 | 52 | 79 | 83 | ||||||||||||||
Consumer | 230 | 564 | 668 | 619 | 634 | 794 | 1,498 | ||||||||||||||
Overdrafts | 440 | 492 | 564 | 450 | 541 | 932 | 1,243 | ||||||||||||||
Total Charge-Offs | $ | 841 | $ | 1,136 | $ | 1,384 | $ | 1,282 | $ | 1,414 | $ | 1,977 | $ | 3,494 | |||||||
RECOVERIES | |||||||||||||||||||||
Commercial, Financial and Agricultural | $ | 103 | $ | 136 | $ | 64 | $ | 74 | $ | 74 | $ | 239 | $ | 114 | |||||||
Real Estate - Construction | - | - | 50 | - | - | - | - | ||||||||||||||
Real Estate - Commercial | 26 | 645 | 27 | 30 | 70 | 671 | 261 | ||||||||||||||
Real Estate - Residential | 244 | 75 | 153 | 35 | 51 | 319 | 91 | ||||||||||||||
Real Estate - Home Equity | 70 | 124 | 40 | 41 | 64 | 194 | 97 | ||||||||||||||
Consumer | 332 | 311 | 306 | 280 | 365 | 643 | 633 | ||||||||||||||
Overdrafts | 399 | 367 | 258 | 237 | 549 | 766 | 976 | ||||||||||||||
Total Recoveries | $ | 1,174 | $ | 1,658 | $ | 898 | $ | 697 | $ | 1,173 | $ | 2,832 | $ | 2,172 | |||||||
NET CHARGE-OFFS (RECOVERIES) | $ | (333 | ) | $ | (522 | ) | $ | 486 | $ | 585 | $ | 241 | $ | (855 | ) | $ | 1,322 | ||||
Net Charge-Offs as a % of Average Loans HFI(2) | (0.07 | )% | (0.10 | )% | 0.09 | % | 0.11 | % | 0.05 | % | (0.08 | )% | 0.14 | % | |||||||
RISK ELEMENT ASSETS | |||||||||||||||||||||
Nonaccruing Loans | $ | 5,110 | $ | 5,362 | $ | 5,871 | $ | 5,505 | $ | 6,966 | |||||||||||
Other Real Estate Owned | 1,192 | 110 | 808 | 1,227 | 1,059 | ||||||||||||||||
Total Nonperforming Assets ("NPAs") | $ | 6,302 | $ | 5,472 | $ | 6,679 | $ | 6,732 | $ | 8,025 | |||||||||||
Past Due Loans 30-89 Days | $ | 3,745 | $ | 2,622 | $ | 4,594 | $ | 3,191 | $ | 2,948 | |||||||||||
Past Due Loans 90 Days or More | - | - | - | - | - | ||||||||||||||||
Classified Loans | 19,397 | 20,608 | 17,631 | 16,772 | 17,091 | ||||||||||||||||
Performing Troubled Debt Restructurings | $ | 8,992 | $ | 13,597 | $ | 13,887 | $ | 14,693 | $ | 15,133 | |||||||||||
Nonperforming Loans as a % of Loans HFI | 0.25 | % | 0.26 | % | 0.29 | % | 0.28 | % | 0.34 | % | |||||||||||
NPAs as a % of Loans HFI and | 0.31 | % | 0.27 | % | 0.33 | % | 0.34 | % | 0.40 | % | |||||||||||
NPAs as a % of Total Assets | 0.16 | % | 0.14 | % | 0.18 | % | 0.19 | % | 0.23 | % | |||||||||||
(1) Recorded in other liabilities | |||||||||||||||||||||
(2) Annualized |
AVERAGE BALANCE AND INTEREST RATES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Second Quarter 2021 | First Quarter 2021 | Fourth Quarter 2020 | Third Quarter 2020 | Second Quarter 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | ||||||||||||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Held for Sale | $ | 77,101 | $ | 566 | 2.94 | % | $ | 106,242 | $ | 970 | 3.70 | % | $ | 121,052 | $ | 878 | 3.85 | % | $ | 92,522 | 671 | 3.64 | % | $ | 74,965 | $ | 550 | 3.41 | % | $ | 91,591 | $ | 1,536 | 3.38 | % | $ | 55,181 | $ | 906 | 3.30 | % | ||||||||||||||||
Loans Held for Investment(1) | 2,036,781 | 24,095 | 4.74 | 2,044,363 | 22,483 | 4.46 | 1,993,470 | 23,103 | 4.55 | 2,005,178 | 23,027 | 4.53 | 1,982,960 | 23,235 | 4.70 | 2,040,551 | 46,578 | 4.71 | 1,915,370 | 46,571 | 4.89 | ||||||||||||||||||||||||||||||||||||
687,882 | 2,036 | 1.18 | 528,842 | 1,863 | 1.41 | 513,277 | 2,072 | 1.61 | 553,395 | 2,401 | 1.73 | 601,509 | 2,708 | 1.80 | 608,801 | 3,899 | 1.28 | 615,511 | 5,703 | 1.86 | |||||||||||||||||||||||||||||||||||||
3,530 | 23 | 2.58 | 3,844 | 25 | 2.61 | 4,485 | 30 | 2.71 | 4,860 | 32 | 2.66 | 5,865 | 37 | 2.51 | 3,686 | 48 | 2.60 | 5,579 | 62 | 2.20 | |||||||||||||||||||||||||||||||||||||
691,412 | 2,059 | 1.19 | 532,686 | 1,888 | 1.42 | 517,762 | 2,102 | 1.62 | 558,255 | 2,433 | 1.74 | 607,374 | 2,745 | 1.81 | 612,487 | 3,947 | 1.29 | 621,090 | 5,765 | 1.86 | |||||||||||||||||||||||||||||||||||||
Funds Sold | 818,616 | 200 | 0.10 | 814,638 | 214 | 0.11 | 705,125 | 180 | 0.10 | 567,883 | 146 | 0.10 | 351,473 | 88 | 0.10 | 816,638 | 414 | 0.10 | 292,922 | 845 | 0.58 | ||||||||||||||||||||||||||||||||||||
Total Earning Assets | 3,623,910 | $ | 26,920 | 2.98 | % | 3,497,929 | $ | 25,555 | 2.96 | % | 3,337,409 | $ | 26,263 | 3.14 | % | 3,223,838 | $ | 26,277 | 3.25 | % | 3,016,772 | $ | 26,618 | 3.55 | % | 3,561,267 | $ | 52,475 | 2.97 | % | 2,884,563 | $ | 54,087 | 3.77 | % | ||||||||||||||||||||||
Cash and Due From Banks | 74,076 | 68,978 | 73,968 | 69,893 | 72,647 | 71,541 | 64,802 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses | (22,794 | ) | (24,128 | ) | (23,725 | ) | (22,948 | ) | (21,642 | ) | (23,457 | ) | (18,015 | ) | |||||||||||||||||||||||||||||||||||||||||||
Other Assets | 281,157 | 278,742 | 264,784 | 268,549 | 261,449 | 279,956 | 252,657 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | 3,956,349 | $ | 3,821,521 | $ | 3,652,436 | $ | 3,539,332 | $ | 3,329,226 | $ | 3,889,307 | $ | 3,184,007 | |||||||||||||||||||||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Bearing Deposits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOW Accounts | $ | 966,649 | $ | 74 | 0.03 | % | $ | 985,517 | $ | 76 | 0.03 | % | $ | 879,564 | $ | 66 | 0.03 | % | $ | 826,776 | $ | 61 | 0.03 | % | $ | 789,378 | $ | 78 | 0.04 | % | $ | 976,031 | $ | 150 | 0.03 | % | $ | 799,094 | $ | 803 | 0.20 | % | |||||||||||||||
Money Market Accounts | 272,138 | 33 | 0.05 | 269,829 | 33 | 0.05 | 261,543 | 34 | 0.05 | 247,185 | 32 | 0.05 | 222,377 | 40 | 0.07 | 270,990 | 66 | 0.05 | 217,295 | 157 | 0.15 | ||||||||||||||||||||||||||||||||||||
Savings Accounts | 529,844 | 64 | 0.05 | 492,252 | 60 | 0.05 | 466,116 | 57 | 0.05 | 438,762 | 54 | 0.05 | 409,366 | 50 | 0.05 | 511,152 | 124 | 0.05 | 394,301 | 96 | 0.05 | ||||||||||||||||||||||||||||||||||||
Time Deposits | 102,995 | 37 | 0.15 | 102,089 | 39 | 0.15 | 102,809 | 44 | 0.17 | 104,522 | 43 | 0.16 | 104,718 | 50 | 0.19 | 102,544 | 76 | 0.15 | 105,130 | 101 | 0.19 | ||||||||||||||||||||||||||||||||||||
Total Interest Bearing Deposits | 1,871,626 | 208 | 0.04 | % | 1,849,687 | 208 | 0.05 | % | 1,710,032 | 201 | 0.05 | % | 1,617,245 | 190 | 0.05 | % | 1,525,839 | 218 | 0.06 | % | 1,860,717 | 416 | 0.05 | % | 1,515,820 | 1,157 | 0.15 | % | |||||||||||||||||||||||||||||
Short-Term Borrowings | 51,152 | 324 | 2.54 | % | 67,033 | 412 | 2.49 | % | 95,280 | 639 | 2.67 | % | 74,557 | 498 | 2.66 | % | 73,377 | 421 | 2.31 | % | 59,049 | 736 | 2.51 | % | 53,146 | 553 | 2.09 | % | |||||||||||||||||||||||||||||
Subordinated Notes Payable | 52,887 | 308 | 2.30 | 52,887 | 307 | 2.32 | 52,887 | 311 | 2.30 | 52,887 | 316 | 2.34 | 52,887 | 374 | 2.80 | 52,887 | 615 | 2.31 | 52,887 | 845 | 3.16 | ||||||||||||||||||||||||||||||||||||
Other Long-Term Borrowings | 1,762 | 16 | 3.38 | 2,736 | 21 | 3.18 | 3,700 | 30 | 3.18 | 5,453 | 40 | 2.91 | 5,766 | 41 | 2.84 | 2,246 | 37 | 3.26 | 6,039 | 91 | 3.03 | ||||||||||||||||||||||||||||||||||||
Total Interest Bearing Liabilities | 1,977,427 | $ | 856 | 0.17 | % | 1,972,343 | $ | 948 | 0.19 | % | 1,861,899 | $ | 1,181 | 0.25 | % | 1,750,142 | $ | 1,044 | 0.24 | % | 1,657,869 | $ | 1,054 | 0.26 | % | 1,974,899 | $ | 1,804 | 0.18 | % | 1,627,892 | $ | 2,646 | 0.33 | % | ||||||||||||||||||||||
Noninterest Bearing Deposits | 1,515,726 | 1,389,821 | 1,356,104 | 1,354,032 | 1,257,614 | 1,453,121 | 1,152,251 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities | 107,801 | 111,050 | 74,605 | 83,192 | 72,073 | 109,417 | 65,830 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities | 3,600,954 | 3,473,214 | 3,292,608 | 3,187,366 | 2,987,556 | 3,537,437 | 2,845,973 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Temporary Equity | 26,355 | 21,977 | 16,154 | 11,893 | 8,155 | 24,178 | 5,331 | ||||||||||||||||||||||||||||||||||||||||||||||||||
SHAREOWNERS' EQUITY: | 329,040 | 326,330 | 343,674 | 340,073 | 333,515 | 327,692 | 332,703 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities, Temporary Equity and Shareowners' Equity | $ | 3,956,349 | $ | 3,821,521 | $ | 3,652,436 | $ | 3,539,332 | $ | 3,329,226 | $ | 3,889,307 | $ | 3,184,007 | |||||||||||||||||||||||||||||||||||||||||||
Interest Rate Spread | $ | 26,064 | 2.81 | % | $ | 24,607 | 2.77 | % | $ | 25,082 | 2.88 | % | $ | 25,233 | 3.01 | % | $ | 25,564 | 3.30 | % | $ | 50,671 | 2.79 | % | $ | 51,441 | 3.44 | % | |||||||||||||||||||||||||||||
Interest Income and Rate Earned(1) | 26,920 | 2.98 | 25,555 | 2.96 | 26,263 | 3.14 | 26,277 | 3.25 | 26,618 | 3.55 | 52,475 | 2.97 | 54,087 | 3.77 | |||||||||||||||||||||||||||||||||||||||||||
Interest Expense and Rate Paid(2) | 856 | 0.09 | 948 | 0.11 | 1,181 | 0.14 | 1,044 | 0.13 | 1,054 | 0.14 | 1,804 | 0.10 | 2,646 | 0.18 | |||||||||||||||||||||||||||||||||||||||||||
Net Interest Margin | $ | 26,064 | 2.89 | % | $ | 24,607 | 2.85 | % | $ | 25,082 | 3.00 | % | $ | 25,233 | 3.12 | % | $ | 25,564 | 3.41 | % | $ | 50,671 | 2.87 | % | $ | 51,441 | 3.59 | % | |||||||||||||||||||||||||||||
(1) Interest and average rates are calculated on a tax-equivalent basis using a 21% Federal tax rate. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Rate calculated based on average earning assets. |
MORTGAGE BANKING ACTIVITY | ||||||||||||||||
Unaudited | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Net Interest Income | $ | 19 | $ | (153 | ) | $ | 109 | $ | (134 | ) | $ | 125 | ||||
Mortgage Banking Fees | 13,116 | 16,846 | 19,156 | 29,962 | 21,271 | |||||||||||
Other | 425 | 426 | 203 | 851 | 299 | |||||||||||
Total Noninterest Income | 13,541 | 17,272 | 19,359 | 30,813 | 21,570 | |||||||||||
Salaries | 8,538 | 10,276 | 8,381 | 18,814 | 10,623 | |||||||||||
Other Associate Benefits | 210 | 221 | 204 | 431 | 253 | |||||||||||
Total Compensation | 8,748 | 10,497 | 8,585 | 19,245 | 10,876 | |||||||||||
Occupancy, Net | 854 | 861 | 768 | 1,715 | 999 | |||||||||||
Other | 1,359 | 1,101 | 1,248 | 2,460 | 1,705 | |||||||||||
Total Noninterest Expense | 10,961 | 12,459 | 10,601 | 23,420 | 13,580 | |||||||||||
Operating Profit | $ | 2,599 | $ | 4,660 | $ | 8,867 | $ | 7,259 | $ | 8,115 | ||||||
Key Performance Metrics | ||||||||||||||||
Total Loans Closed | $ | 406,859 | $ | 463,126 | $ | 407,118 | $ | 869,985 | $ | 510,008 | ||||||
Total Loans Closed - Mix | ||||||||||||||||
Purchase | 76 | % | 60 | % | 51 | % | 68 | % | 53 | % | ||||||
Refinance | 24 | % | 40 | % | 49 | % | 32 | % | 47 | % |
For Information Contact:
Executive Vice President and Chief Financial Officer
850.402.7820
Source:
2021 GlobeNewswire, Inc., source