Third Quarter 2023 Summary
- Net revenue increased
$2.0 million , or 9.6%, to$22.5 million in Q3 2023, compared to$20.6 million in Q2 2023 - Net income available to common shareholders of
$3.1 million in Q3 2023, compared to$1 .5 million in Q2 2023 and$6 .2 million in Q3 2022 - Diluted EPS of
$0.32 in Q3 2023, compared to$0.16 in Q2 2023 and$0.64 in Q3 2022 - Book value per common share increased to
$25.76 , or 1.5%, from$25.38 as of Q2 2023, and was up 4.1% from$24.74 as of Q3 2022 - Total deposits increased to
$2 .42 billion, or 1.9%, from$2 .38 billion as of Q2 2023, and were up 11.7% from$2 .17 billion as of Q3 2022
Net income available to common shareholders was
"We believe that our success in executing well on those areas that we can control, such as balance sheet management, attracting new clients, providing exceptional service to existing clients, and tightly managing expenses, will help us to continue to offset the impact from the challenging macro environment and deliver strong financial results for our shareholders in the near term. Over the long term, we believe we are very well positioned to consistently add new clients, realize more operating leverage as we increase our scale, generate profitable growth, and create additional value for shareholders," said
For the Three Months Ended | |||||||||||
(Dollars in thousands, except per share data) | 2023 | 2023 | 2022 | ||||||||
Earnings Summary | |||||||||||
Net interest income | $ | 16,766 | $ | 18,435 | $ | 23,062 | |||||
Provision for credit losses(1) | 329 | 1,843 | 1,756 | ||||||||
Total non-interest income | 6,099 | 3,962 | 6,189 | ||||||||
Total non-interest expense | 18,314 | 18,519 | 19,260 | ||||||||
Income before income taxes | 4,222 | 2,035 | 8,235 | ||||||||
Income tax expense | 1,104 | 529 | 2,014 | ||||||||
Net income available to common shareholders | 3,118 | 1,506 | 6,221 | ||||||||
Adjusted net income available to common shareholders(2) | 3,140 | 2,440 | 6,337 | ||||||||
Basic earnings per common share | 0.33 | 0.16 | 0.66 | ||||||||
Adjusted basic earnings per common share(2) | 0.33 | 0.25 | 0.67 | ||||||||
Diluted earnings per common share | 0.32 | 0.16 | 0.64 | ||||||||
Adjusted diluted earnings per common share(2) | 0.32 | 0.25 | 0.66 | ||||||||
Return on average assets (annualized) | 0.44 | % | 0.21 | % | 0.97 | % | |||||
Adjusted return on average assets (annualized)(2) | 0.45 | 0.35 | 0.99 | ||||||||
Return on average shareholders' equity (annualized) | 5.08 | 2.49 | 10.70 | ||||||||
Adjusted return on average shareholders' equity (annualized)(2) | 5.12 | 4.04 | 10.90 | ||||||||
Return on tangible common equity (annualized)(2) | 5.82 | 2.86 | 12.28 | ||||||||
Adjusted return on tangible common equity (annualized)(2) | 5.86 | 4.64 | 12.51 | ||||||||
Net interest margin | 2.46 | 2.73 | 3.74 | ||||||||
Efficiency ratio(2) | 78.76 | 74.42 | 64.94 |
____________________
(1) Provision for credit loss amounts for periods prior to the ASC 326 adoption date of
(2) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
Operating Results for the Third Quarter 2023
Revenue
Total income before non-interest expense was
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
Net Interest Income
Net interest income for the third quarter of 2023 was
Net Interest Margin
Net interest margin for the third quarter of 2023 decreased 27 basis points to 2.46% from 2.73% reported in the second quarter of 2023. During the third quarter of 2023, net interest margin was negatively impacted by the addition of
The yield on interest-earning assets decreased 3 basis points to 5.35% in the third quarter of 2023 from 5.38% in the second quarter of 2023 and the cost of interest-bearing deposits increased 31 basis points to 3.75% in the third quarter of 2023 from 3.44% in the second quarter of 2023.
Relative to the third quarter of 2022, net interest margin decreased from 3.74%, primarily due to a 244 basis point increase in average cost of deposits, offset partially by a 94 basis point increase in loan yields.
Non-interest Income
Non-interest income for the third quarter of 2023 was
Relative to the third quarter of 2022, non-interest income decreased 1.5% from
Non-interest Expense
Non-interest expense for the third quarter of 2023 decreased 1.1% to
The Company’s efficiency ratio(1) was 78.8% in the third quarter of 2023, compared with 74.4% in the second quarter of 2023 and 64.9% in the third quarter of 2022.
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
Income Taxes
The Company recorded income tax expense of
Loans
Total loans held for investment were
Deposits
Total deposits were
Borrowings
Subordinated notes were
Assets Under Management
Assets Under Management ("AUM") decreased by
Credit Quality
Non-performing assets totaled
During the third quarter of 2023, the Company recorded a provision expense of
Capital
As of
2023 | ||
Tier 1 capital to risk-weighted assets | 9.32 | % |
Common Equity Tier 1 ("CET1") to risk-weighted assets | 9.32 | |
Total capital to risk-weighted assets | 12.45 | |
Tier 1 capital to average assets | 7.96 | |
Tier 1 capital to risk-weighted assets | 10.42 | |
CET1 to risk-weighted assets | 10.42 | |
Total capital to risk-weighted assets | 11.31 | |
Tier 1 capital to average assets | 8.88 |
Book value per common share increased 1.5% from
Tangible book value per common share(1) increased 1.8% from
(1) Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
Conference Call, Webcast and Slide Presentation
The Company will host a conference call and webcast at
A slide presentation relating to the third quarter 2023 results will be accessible prior to the scheduled conference call. The slide presentation and webcast of the conference call can be accessed on the Events and Presentations page of the Company’s investor relations website at https://myfw.gcs-web.com.
About First Western
First Western is a financial services holding company headquartered in
Non-GAAP Financial Measures
Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in
Forward-Looking Statements
Statements in this news release regarding our expectations and beliefs about our future financial performance and financial condition, as well as trends in our 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,” “position,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “opportunity,” “could,” or “may.” The forward-looking statements in this news release are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause us to make changes to our future plans. Those risks and uncertainties include, without limitation, the lack of soundness of other financial institutions or financial market utilities may adversely affect the Company; the Company’s ability to engage in routine funding and other transactions could be adversely affected by the actions and commercial soundness of other financial institutions; financial institutions are interrelated because of trading, clearing, counterparty or other relationships; defaults by, or even rumors or questions about, one or more financial institutions or financial market utilities, or the financial services industry generally, may lead to market-wide liquidity problems and losses of client, creditor and counterparty confidence and could lead to losses or defaults by other financial institutions, or the Company; integration risks and projected cost savings in connection with acquisitions; the risk of geographic concentration in
Contacts:
310-622-8221
MYFW@finprofiles.com
IR@myfw.com
Consolidated Financial Summary (unaudited) | |||||||||||
Three Months Ended | |||||||||||
(Dollars in thousands, except per share amounts) | 2023 | 2023 | 2022 | ||||||||
Interest and dividend income: | |||||||||||
Loans, including fees | $ | 34,141 | $ | 33,583 | $ | 24,988 | |||||
Loans accounted for under the fair value option | 300 | 351 | 513 | ||||||||
Investment securities | 607 | 627 | 653 | ||||||||
Interest-bearing deposits in other financial institutions | 1,292 | 1,666 | 533 | ||||||||
Dividends, restricted stock | 141 | 145 | 108 | ||||||||
Total interest and dividend income | 36,481 | 36,372 | 26,795 | ||||||||
Interest expense: | |||||||||||
Deposits | 17,467 | 15,864 | 2,706 | ||||||||
Other borrowed funds | 2,248 | 2,073 | 1,027 | ||||||||
Total interest expense | 19,715 | 17,937 | 3,733 | ||||||||
Net interest income | 16,766 | 18,435 | 23,062 | ||||||||
Less: provision for credit losses(1) | 329 | 1,843 | 1,756 | ||||||||
Net interest income, after provision for credit losses(1) | 16,437 | 16,592 | 21,306 | ||||||||
Non-interest income: | |||||||||||
Trust and investment management fees | 4,846 | 4,602 | 4,639 | ||||||||
Net gain on mortgage loans | 654 | 774 | 728 | ||||||||
Bank fees | 427 | 591 | 587 | ||||||||
Risk management and insurance fees | 145 | 103 | 115 | ||||||||
Income on company-owned life insurance | 96 | 91 | 88 | ||||||||
Net loss on loans accounted for under the fair value option | (252 | ) | (1,124 | ) | (134 | ) | |||||
Unrealized (loss)/gain recognized on equity securities | (19 | ) | (11 | ) | 75 | ||||||
Net gain on equity interests | — | — | 6 | ||||||||
Other | 202 | (1,064 | ) | 85 | |||||||
Total non-interest income | 6,099 | 3,962 | 6,189 | ||||||||
Total income before non-interest expense | 22,536 | 20,554 | 27,495 | ||||||||
Non-interest expense: | |||||||||||
Salaries and employee benefits | 10,968 | 11,148 | 11,566 | ||||||||
Occupancy and equipment | 1,807 | 1,939 | 1,836 | ||||||||
Professional services | 1,867 | 1,858 | 2,316 | ||||||||
Technology and information systems | 906 | 831 | 1,172 | ||||||||
Data processing | 1,159 | 1,052 | 888 | ||||||||
Marketing | 355 | 379 | 403 | ||||||||
Amortization of other intangible assets | 62 | 62 | 77 | ||||||||
Net gain on assets held for sale | — | — | (1 | ) | |||||||
Net gain on sale of other real estate owned | — | — | (41 | ) | |||||||
Other | 1,190 | 1,250 | 1,044 | ||||||||
Total non-interest expense | 18,314 | 18,519 | 19,260 | ||||||||
Income before income taxes | 4,222 | 2,035 | 8,235 | ||||||||
Income tax expense | 1,104 | 529 | 2,014 | ||||||||
Net income available to common shareholders | $ | 3,118 | $ | 1,506 | $ | 6,221 | |||||
Earnings per common share: | |||||||||||
Basic | $ | 0.33 | $ | 0.16 | $ | 0.66 | |||||
Diluted | 0.32 | 0.16 | 0.64 |
(1) Provision for credit loss amounts for periods prior to the ASC 326 adoption date of
Consolidated Financial Summary (unaudited) | |||||||||||
(Dollars in thousands) | 2023 | 2023 | 2022 | ||||||||
Assets | |||||||||||
Cash and cash equivalents: | |||||||||||
Cash and due from banks | $ | 6,439 | $ | 6,285 | $ | 8,308 | |||||
Interest-bearing deposits in other financial institutions | 265,045 | 291,283 | 156,940 | ||||||||
Total cash and cash equivalents | 271,484 | 297,568 | 165,248 | ||||||||
Held-to-maturity securities, at amortized cost (fair value of | 75,539 | 77,469 | 84,257 | ||||||||
Correspondent bank stock, at cost | 11,305 | 13,518 | 12,783 | ||||||||
Mortgage loans held for sale, at fair value | 12,105 | 19,746 | 12,743 | ||||||||
Loans (includes | 2,530,459 | 2,495,582 | 2,351,322 | ||||||||
Allowance for credit losses(1) | (23,175 | ) | (22,044 | ) | (16,081 | ) | |||||
Loans, net | 2,507,284 | 2,473,538 | 2,335,241 | ||||||||
Premises and equipment, net | 25,410 | 25,473 | 24,668 | ||||||||
Accrued interest receivable | 11,633 | 11,135 | 8,451 | ||||||||
Accounts receivable | 5,292 | 5,116 | 5,947 | ||||||||
Other receivables | 3,052 | 3,331 | 2,868 | ||||||||
Other real estate owned, net | — | — | 187 | ||||||||
31,916 | 31,977 | 32,181 | |||||||||
Deferred tax assets, net | 6,624 | 7,202 | 6,849 | ||||||||
Company-owned life insurance | 16,429 | 16,333 | 16,064 | ||||||||
Other assets | 24,680 | 23,240 | 21,212 | ||||||||
Total assets | $ | 3,002,753 | $ | 3,005,646 | $ | 2,728,699 | |||||
Liabilities | |||||||||||
Deposits: | |||||||||||
Noninterest-bearing | $ | 476,308 | $ | 514,241 | $ | 662,055 | |||||
Interest-bearing | 1,943,688 | 1,861,153 | 1,505,392 | ||||||||
Total deposits | 2,419,996 | 2,375,394 | 2,167,447 | ||||||||
Borrowings: | |||||||||||
259,930 | 312,600 | 273,225 | |||||||||
Subordinated notes | 52,279 | 52,223 | 32,584 | ||||||||
Accrued interest payable | 3,203 | 1,788 | 664 | ||||||||
Other liabilities | 21,089 | 21,399 | 19,917 | ||||||||
Total liabilities | 2,756,497 | 2,763,404 | 2,493,837 | ||||||||
Shareholders’ Equity | |||||||||||
Total shareholders’ equity | 246,256 | 242,242 | 234,862 | ||||||||
Total liabilities and shareholders’ equity | $ | 3,002,753 | $ | 3,005,646 | $ | 2,728,699 |
(1) Allowance for credit loss amounts for periods prior to the ASC 326 adoption date of
Consolidated Financial Summary (unaudited) | |||||||||||
(Dollars in thousands) | 2023 | 2023 | 2022 | ||||||||
Loan Portfolio | |||||||||||
Cash, Securities, and Other(1) | $ | 148,669 | $ | 150,679 | $ | 154,748 | |||||
Consumer and Other | 23,975 | 21,866 | 27,781 | ||||||||
Construction and Development | 349,436 | 313,227 | 228,060 | ||||||||
1-4 Family Residential | 913,085 | 878,670 | 822,796 | ||||||||
Non-Owner Occupied CRE | 527,377 | 561,880 | 527,836 | ||||||||
Owner Occupied CRE | 208,341 | 218,651 | 220,075 | ||||||||
Commercial and Industrial | 349,515 | 338,679 | 350,954 | ||||||||
Total | 2,520,398 | 2,483,652 | 2,332,250 | ||||||||
Loans accounted for under the fair value option | 16,105 | 18,274 | 22,648 | ||||||||
Total loans held for investment | 2,536,503 | 2,501,926 | 2,354,898 | ||||||||
Deferred (fees) costs and unamortized premiums/(unaccreted discounts), net(2) | (6,044 | ) | (6,344 | ) | (3,576 | ) | |||||
Loans (includes | $ | 2,530,459 | $ | 2,495,582 | $ | 2,351,322 | |||||
Mortgage loans held for sale | 12,105 | 19,746 | 12,743 | ||||||||
Deposit Portfolio | |||||||||||
Money market deposit accounts | $ | 1,388,726 | $ | 1,297,732 | $ | 1,010,846 | |||||
Time deposits | 373,459 | 376,147 | 186,680 | ||||||||
Negotiable order of withdrawal accounts | 164,000 | 168,537 | 277,225 | ||||||||
Savings accounts | 17,503 | 18,737 | 30,641 | ||||||||
Total interest-bearing deposits | 1,943,688 | 1,861,153 | 1,505,392 | ||||||||
Noninterest-bearing accounts | 476,308 | 514,241 | 662,055 | ||||||||
Total deposits | $ | 2,419,996 | $ | 2,375,394 | $ | 2,167,447 |
____________________
(1) Includes PPP loans of
(2) Includes fair value adjustments on loans held for investment accounted for under the fair value option.
Consolidated Financial Summary (unaudited) (continued) | |||||||||||
As of or for the Three Months Ended | |||||||||||
(Dollars in thousands) | 2023 | 2023 | 2022 | ||||||||
Average Balance Sheets | |||||||||||
Assets | |||||||||||
Interest-earning assets: | |||||||||||
Interest-bearing deposits in other financial institutions | $ | 102,510 | $ | 135,757 | $ | 101,564 | |||||
Federal funds sold | — | — | 260 | ||||||||
Investment securities | 78,057 | 80,106 | 87,340 | ||||||||
Correspondent bank stock | 7,162 | 8,844 | 4,924 | ||||||||
Loans | 2,502,419 | 2,471,587 | 2,241,343 | ||||||||
Interest-earning assets | 2,690,148 | 2,696,294 | 2,435,431 | ||||||||
Mortgage loans held for sale | 12,680 | 15,841 | 11,535 | ||||||||
Total interest-earning assets, plus mortgage loans held for sale | 2,702,828 | 2,712,135 | 2,446,966 | ||||||||
Allowance for credit losses(1) | (22,122 | ) | (20,077 | ) | (14,981 | ) | |||||
Noninterest-earning assets | 125,774 | 124,561 | 126,457 | ||||||||
Total assets | $ | 2,806,480 | $ | 2,816,619 | $ | 2,558,442 | |||||
Liabilities and Shareholders’ Equity | |||||||||||
Interest-bearing liabilities: | |||||||||||
Interest-bearing deposits | $ | 1,846,318 | $ | 1,847,788 | $ | 1,480,288 | |||||
FHLB and | 125,250 | 123,578 | 119,025 | ||||||||
Subordinated notes | 52,242 | 52,186 | 32,564 | ||||||||
Total interest-bearing liabilities | 2,023,810 | 2,023,552 | 1,631,877 | ||||||||
Noninterest-bearing liabilities: | |||||||||||
Noninterest-bearing deposits | 512,956 | 527,562 | 673,949 | ||||||||
Other liabilities | 24,228 | 23,850 | 20,103 | ||||||||
Total noninterest-bearing liabilities | 537,184 | 551,412 | 694,052 | ||||||||
Total shareholders’ equity | 245,486 | 241,655 | 232,513 | ||||||||
Total liabilities and shareholders’ equity | $ | 2,806,480 | $ | 2,816,619 | $ | 2,558,442 | |||||
Yields/Cost of funds (annualized) | |||||||||||
Interest-bearing deposits in other financial institutions | 5.00 | % | 4.92 | % | 2.06 | % | |||||
Investment securities | 3.09 | 3.14 | 2.97 | ||||||||
Correspondent bank stock | 7.81 | 6.58 | 8.70 | ||||||||
Loans | 5.43 | 5.47 | 4.49 | ||||||||
Mortgage loans held for sale | 6.70 | 5.82 | 5.40 | ||||||||
Total interest-earning assets | 5.35 | 5.38 | 4.34 | ||||||||
Interest-bearing deposits | 3.75 | 3.44 | 0.73 | ||||||||
Cost of deposits | 2.94 | 2.68 | 0.50 | ||||||||
FHLB and | 4.58 | 4.42 | 2.22 | ||||||||
Subordinated notes | 6.08 | 5.47 | 4.41 | ||||||||
Total interest-bearing liabilities | 3.86 | 3.56 | 0.91 | ||||||||
Net interest margin | 2.46 | 2.73 | 3.74 | ||||||||
Net interest rate spread | 1.49 | 1.82 | 3.44 |
(1) Allowance for credit loss amounts for periods prior to the ASC 326 adoption date of
Consolidated Financial Summary (unaudited) (continued) | |||||||||||
As of or for the Three Months Ended | |||||||||||
(Dollars in thousands, except share and per share amounts) | 2023 | 2023 | 2022 | ||||||||
Asset Quality | |||||||||||
Non-performing loans | $ | 56,146 | $ | 10,273 | $ | 3,744 | |||||
Non-performing assets | 56,146 | 10,273 | 3,931 | ||||||||
Net charge-offs | 190 | 8 | 32 | ||||||||
Non-performing loans to total loans | 2.21 | % | 0.41 | % | 0.16 | % | |||||
Non-performing assets to total assets | 1.87 | 0.36 | 0.14 | ||||||||
Allowance for credit losses to non-performing loans(3) | 41.28 | 214.58 | 429.51 | ||||||||
Allowance for credit losses to total loans(3) | 0.92 | 0.89 | 0.69 | ||||||||
Allowance for credit losses to adjusted loans(1)(3) | 0.92 | 0.89 | 0.77 | ||||||||
Net charge-offs to average loans(2) | 0.01 | * | * | ||||||||
Assets Under Management | $ | 6,395,786 | $ | 6,503,964 | $ | 5,918,403 | |||||
Market Data | |||||||||||
Book value per share at period end | 25.76 | 25.38 | 24.74 | ||||||||
Tangible book value per common share(1) | 22.42 | 22.03 | 21.35 | ||||||||
Weighted average outstanding shares, basic | 9,553,331 | 9,532,397 | 9,481,311 | ||||||||
Weighted average outstanding shares, diluted | 9,743,270 | 9,686,401 | 9,673,078 | ||||||||
Shares outstanding at period end | 9,560,209 | 9,545,071 | 9,492,006 | ||||||||
Tier 1 capital to risk-weighted assets | 9.32 | % | 9.26 | % | 9.54 | % | |||||
CET1 to risk-weighted assets | 9.32 | 9.26 | 9.54 | ||||||||
Total capital to risk-weighted assets | 12.45 | 12.41 | 11.84 | ||||||||
Tier 1 capital to average assets | 7.96 | 7.80 | 8.18 | ||||||||
Tier 1 capital to risk-weighted assets | 10.42 | 10.34 | 10.32 | ||||||||
CET1 to risk-weighted assets | 10.42 | 10.34 | 10.32 | ||||||||
Total capital to risk-weighted assets | 11.31 | 11.23 | 11.09 | ||||||||
Tier 1 capital to average assets | 8.88 | 8.70 | 8.84 |
____________________
(1) Represents a Non-GAAP financial measure. See “Reconciliation of Non-GAAP Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.
(2) Value results in an immaterial amount.
(3) Allowance for credit loss amounts for periods prior to the ASC 326 adoption date of
Consolidated Financial Summary (unaudited) (continued)
Reconciliations of Non-GAAP Financial Measures
As of or for the Three Months Ended | |||||||||||
(Dollars in thousands, except share and per share amounts) | 2023 | 2023 | 2022 | ||||||||
Tangible Common | |||||||||||
Total shareholders' equity | $ | 246,256 | $ | 242,242 | $ | 234,862 | |||||
Less: goodwill and other intangibles, net | 31,916 | 31,977 | 32,181 | ||||||||
Tangible common equity | $ | 214,340 | $ | 210,265 | $ | 202,681 | |||||
Common shares outstanding, end of period | 9,560,209 | 9,545,071 | 9,492,006 | ||||||||
Tangible common book value per share | $ | 22.42 | $ | 22.03 | $ | 21.35 | |||||
Net income available to common shareholders | 3,118 | 1,506 | 6,221 | ||||||||
Return on tangible common equity (annualized) | 5.82 | % | 2.86 | % | 12.28 | % | |||||
Efficiency | |||||||||||
Non-interest expense | $ | 18,314 | $ | 18,519 | $ | 19,260 | |||||
Less: amortization | 62 | 62 | 77 | ||||||||
Less: acquisition related expenses | 30 | 14 | 154 | ||||||||
Adjusted non-interest expense | $ | 18,222 | $ | 18,443 | $ | 19,029 | |||||
Total income before non-interest expense | $ | 22,536 | $ | 20,554 | $ | 27,495 | |||||
Less: unrealized (loss)/gain recognized on equity securities | (19 | ) | (11 | ) | 75 | ||||||
Less: net loss on loans accounted for under the fair value option | (252 | ) | (1,124 | ) | (134 | ) | |||||
Less: net gain on equity interests | — | — | 6 | ||||||||
Less: impairment of contingent consideration assets | — | (1,249 | ) | — | |||||||
Plus: provision for credit losses(1) | 329 | 1,843 | 1,756 | ||||||||
Gross revenue | $ | 23,136 | $ | 24,781 | $ | 29,304 | |||||
Efficiency ratio | 78.76 | % | 74.42 | % | 64.94 | % | |||||
Allowance for Credit Loss to Adjusted Loans | |||||||||||
Total loans held for investment | 2,536,503 | 2,501,926 | 2,354,898 | ||||||||
Less: loans acquired(2) | — | — | 248,573 | ||||||||
Less: PPP loans(3) | 4,876 | 5,558 | 6,905 | ||||||||
Less: loans accounted for under fair value | 16,105 | 18,274 | 22,648 | ||||||||
Adjusted loans | $ | 2,515,522 | $ | 2,478,094 | $ | 2,076,772 | |||||
Allowance for credit losses(1) | $ | 23,175 | $ | 22,044 | $ | 16,081 | |||||
Allowance for credit losses to adjusted loans(1) | 0.92 | % | 0.89 | % | 0.77 | % |
___________________
(1) Provision and allowance for credit loss amounts for periods prior to the ASC 326 adoption date of
(2)As of
(3)As of
Consolidated Financial Summary (unaudited) (continued) | |||||||||||
As of or for the Three Months Ended | |||||||||||
(Dollars in thousands, except share and per share data) | 2023 | 2023 | 2022 | ||||||||
Adjusted Net Income Available to Common Shareholders | |||||||||||
Net income available to common shareholders | $ | 3,118 | $ | 1,506 | $ | 6,221 | |||||
Plus: impairment of contingent consideration assets | — | 1,249 | — | ||||||||
Plus: acquisition related expenses | 30 | 14 | 154 | ||||||||
Less: income tax impact from impairment of contingent consideration assets | — | 325 | — | ||||||||
Less: income tax impact from acquisition related expenses | 8 | 4 | 38 | ||||||||
Adjusted net income available to shareholders | $ | 3,140 | $ | 2,440 | $ | 6,337 | |||||
Pre-Tax, Pre-Provision Net Income | |||||||||||
Income before income taxes | $ | 4,222 | $ | 2,035 | $ | 8,235 | |||||
Plus: provision for credit losses | 329 | 1,843 | 1,756 | ||||||||
Pre-tax, pre-provision net income | $ | 4,551 | $ | 3,878 | $ | 9,991 | |||||
Adjusted Basic Earnings Per Share | |||||||||||
Basic earnings per share | $ | 0.33 | $ | 0.16 | $ | 0.66 | |||||
Plus: impairment of contingent consideration assets net of income tax impact | — | 0.09 | — | ||||||||
Plus: acquisition related expenses net of income tax impact | * | * | 0.01 | ||||||||
Adjusted basic earnings per share | $ | 0.33 | $ | 0.25 | $ | 0.67 | |||||
Adjusted Diluted Earnings Per Share | |||||||||||
Diluted earnings per share | $ | 0.32 | $ | 0.16 | $ | 0.64 | |||||
Plus: impairment of contingent consideration assets net of income tax impact | — | 0.09 | — | ||||||||
Plus: acquisition related expenses net of income tax impact | * | * | 0.02 | ||||||||
Adjusted diluted earnings per share | $ | 0.32 | $ | 0.25 | $ | 0.66 | |||||
Adjusted Return on Average Assets (annualized) | |||||||||||
Return on average assets | 0.44 | % | 0.21 | % | 0.97 | % | |||||
Plus: impairment of contingent consideration assets net of income tax impact | — | 0.13 | — | ||||||||
Plus: acquisition related expenses net of income tax impact | 0.01 | 0.01 | 0.02 | ||||||||
Adjusted return on average assets | 0.45 | % | 0.35 | % | 0.99 | % | |||||
Adjusted Return on Average Shareholders' Equity (annualized) | |||||||||||
Return on average shareholders' equity | 5.08 | % | 2.49 | % | 10.70 | % | |||||
Plus: impairment of contingent consideration assets net of income tax impact | — | 1.53 | — | ||||||||
Plus: acquisition related expenses net of income tax impact | 0.04 | 0.02 | 0.20 | ||||||||
Adjusted return on average shareholders' equity | 5.12 | % | 4.04 | % | 10.90 | % | |||||
Adjusted Return on Tangible Common Equity (annualized) | |||||||||||
Return on tangible common equity | 5.82 | % | 2.86 | % | 12.28 | % | |||||
Plus: impairment of contingent consideration assets net of income tax impact | — | 1.76 | — | ||||||||
Plus: acquisition related expenses net of income tax impact | 0.04 | 0.02 | 0.23 | ||||||||
Adjusted return on tangible common equity | 5.86 | % | 4.64 | % | 12.51 | % |
* Represents an immaterial impact to adjusted earnings per share.
Source:
2023 GlobeNewswire, Inc., source