Fourth Quarter Highlights
- Net income for the fourth quarter of 2022 was
$7.4 million , up 17.0% from the prior quarter and 5.0% from the same period in the prior year - Diluted earnings per share for the fourth quarter of 2022 was
$1.31 , up 17.0% from the prior quarter and 5.6% from the same period in the prior year - Total loans held-for-investment (“HFI”) reached
$1.6 billion atDecember 31, 2022 , an increase of$100.9 million or 6.8% from the prior quarter - The allowance for loan losses was 1.21% of total loans HFI at
December 31, 2022 compared to 1.28% as ofSeptember 30, 2022 - The provision for loan losses for the fourth quarter of 2022 was
$60 thousand , a decrease from$1.3 million for the prior quarter - Noninterest-bearing demand deposits, which represent 41.3% of total deposits at
December 31, 2022 , declined$71.8 million or 9.4% from the prior quarter. Total core deposits, which exclude brokered deposits, were$1.5 billion . - Net interest margin was 5.17% for the fourth quarter of 2022, as compared to 4.99% for the prior quarter and 4.44% for the same period in the prior year
- Total cost of funding sources increased to 0.86% for the fourth quarter of 2022, an increase from 0.36% in the prior quarter. Total cost of deposits was 0.79%
- Tangible book value per share was
$25.02 atDecember 31, 2022 , up from$23.51 September 30, 2022 as a result of strong earnings
2022 Full Year and Period End Highlights
- Record net income of
$24.7 million , an increase of 17.4% from$21.0 million for FY’21 - Diluted earnings per share of
$4.33 , an increase of 17.2% from$3.69 for FY’21 - Pretax, pre-provision net revenue of
$37.1 million , representing a 13.9% increase from$32.6 million for FY’21 - Return on average assets of 1.51%, compared to 1.48% for FY’21
- Return on average equity of 18.16%, compared to 17.77% for FY’21
- Net interest margin of 4.87%, compared to 4.19% for FY’21
- Total assets increased to
$1.9 billion , representing an increase of 22.2% sinceDecember 31, 2021 - Loans HFI reached
$1.6 billion , an increase of$363.8 million or 29.7% sinceDecember 31, 2021 - Total deposits reached
$1.7 billion , an increase of$329.5 million or 24.5% sinceDecember 31, 2021 - Non-interest-bearing demand deposits reached
$691.4 million , an increase of$8.8 million or 1.3% sinceDecember 31, 2021
Sowers added, “Net interest income was strong at
“The Company continues to exhibit successful customer acquisition activity as shown by the growth in loans despite a rising rate environment. Additionally, the Company continues to invest in people and infrastructure needed to support the continued growth of the CalPrivate franchise,” said
Isakow added, “The Board is pleased with CalPrivate’s financial performance in 2022, and we remain optimistic about management’s ability to react to and successfully navigate the Company during these uncertain times.”
STATEMENT OF INCOME
Net Interest Income
Net interest income for the fourth quarter of 2022 totaled
Net Interest Margin
The net interest margin for the fourth quarter of 2022 was 5.17% compared to 4.99% for the prior quarter. The 18 basis point increase in net interest margin was due to higher rates on new loan originations and variable rate loans and investment securities, partially offset by higher rates paid on deposits. The yield on earning assets was 5.97% for the fourth quarter of 2022 compared with 5.32% for the prior quarter and the cost of total funding sources was 0.86% for the fourth quarter of 2022 compared to 0.36% in the prior quarter.
Provision for Loan Losses
The provision for loan losses for the fourth quarter of 2022 was
Noninterest Income
Noninterest income was
Noninterest Expense
Noninterest expense was
Additionally, the Company remains committed to making investments in the business, including technology, marketing, and staffing. Historically high inflation 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
The Company reported total assets of
Asset Quality
As of
As of
Capital Ratios (1)
The Bank’s capital ratios were in excess of the levels established for “well capitalized” institutions and are as follows:
Tier I leverage ratio | 9.52% | 9.27% |
Tier I risk-based capital ratio | 10.10% | 11.63% |
Total risk-based capital ratio | 11.35% | 12.88% |
(1)
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. 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 press release includes forward-looking statements that involve inherent risks and uncertainties.
CONSOLIDATED BALANCE SHEET | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands) | ||||||||||||
Assets | ||||||||||||
Cash and due from banks | $ | 14,495 | $ | 13,506 | $ | 12,336 | ||||||
Interest-bearing deposits in other financial institutions | 32,175 | 44,776 | 39,663 | |||||||||
Interest-bearing deposits at | 83,738 | 43,891 | 97,086 | |||||||||
Total cash and due from banks | 130,408 | 102,173 | 149,085 | |||||||||
Interest-bearing time deposits with other institutions | 6,157 | 6,157 | 5,760 | |||||||||
Investment securities available for sale | 104,652 | 107,332 | 102,066 | |||||||||
Loan held for sale | 6,981 | 7,789 | 24,658 | |||||||||
Total loans held-for-investment | 1,587,960 | 1,487,098 | 1,224,158 | |||||||||
Allowance for loan losses | (19,152 | ) | (19,092 | ) | (16,974 | ) | ||||||
Net loans | 1,568,808 | 1,468,006 | 1,207,184 | |||||||||
7,020 | 7,020 | 4,909 | ||||||||||
Right of use asset | 3,265 | 2,669 | 3,759 | |||||||||
Premises and equipment, net | 1,742 | 2,040 | 2,294 | |||||||||
Servicing assets, net | 3,007 | 3,502 | 3,079 | |||||||||
Accrued interest receivable | 5,291 | 4,262 | 3,355 | |||||||||
Other assets | 16,180 | 15,951 | 10,935 | |||||||||
Total assets | $ | 1,853,511 | $ | 1,726,901 | $ | 1,517,084 | ||||||
Liabilities and Shareholders' Equity | ||||||||||||
Liabilities | ||||||||||||
Noninterest bearing | $ | 691,392 | $ | 763,227 | $ | 682,589 | ||||||
Interest Bearing | 983,730 | 767,371 | 663,074 | |||||||||
Total deposits | 1,675,122 | 1,530,598 | 1,345,663 | |||||||||
FHLB borrowings | - | 30,000 | 10,000 | |||||||||
Other borrowings | 17,954 | 17,952 | 17,947 | |||||||||
Accrued interest payable and other liabilities | 17,111 | 13,417 | 15,110 | |||||||||
Total liabilities | 1,710,187 | 1,591,967 | 1,388,720 | |||||||||
Shareholders' equity | ||||||||||||
Common stock | 72,221 | 71,671 | 70,850 | |||||||||
Additional paid-in capital | 3,353 | 3,568 | 3,343 | |||||||||
Retained earnings | 77,810 | 70,386 | 54,922 | |||||||||
Accumulated other comprehensive (loss) income, net | (10,060 | ) | (10,691 | ) | (751 | ) | ||||||
Total shareholders' equity | 143,324 | 134,934 | 128,364 | |||||||||
Total liabilities and shareholders' equity | $ | 1,853,511 | $ | 1,726,901 | $ | 1,517,084 | ||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(Unaudited) | |||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||
For the three months ended | Year to Date | ||||||||||||||
Interest Income | |||||||||||||||
Loans | $ | 24,717 | $ | 21,028 | $ | 16,941 | $ | 80,922 | $ | 61,806 | |||||
Investment securities | 592 | 578 | 352 | 2,143 | 1,338 | ||||||||||
Deposits in other financial institutions | 756 | 372 | 63 | 1,467 | 221 | ||||||||||
Total interest income | 26,065 | 21,978 | 17,356 | 84,532 | 63,365 | ||||||||||
Interest Expense | |||||||||||||||
Deposits | 3,149 | 1,011 | 353 | 4,897 | 1,689 | ||||||||||
Borrowings | 320 | 364 | 314 | 1,311 | 2,885 | ||||||||||
Total interest expense | 3,469 | 1,375 | 667 | 6,208 | 4,574 | ||||||||||
Net interest income | 22,596 | 20,603 | 16,689 | 78,324 | 58,791 | ||||||||||
Provision for loan losses | 60 | 1,316 | 834 | 2,178 | 2,713 | ||||||||||
Net interest income after provision for loan losses | 22,536 | 19,287 | 15,855 | 76,146 | 56,078 | ||||||||||
Noninterest income: | |||||||||||||||
Service charges on deposit accounts | 274 | 306 | 254 | 1,160 | 945 | ||||||||||
Net gain on sale of loans | 792 | 647 | 3,670 | 4,678 | 9,309 | ||||||||||
Other noninterest income | 6 | 452 | 348 | 1,190 | 1,084 | ||||||||||
Total noninterest income | 1,072 | 1,405 | 4,272 | 7,028 | 11,338 | ||||||||||
Noninterest expense: | |||||||||||||||
Compensation and employee benefits | 8,482 | 7,261 | 6,802 | 30,430 | 24,278 | ||||||||||
Occupancy and equipment | 819 | 756 | 741 | 3,106 | 3,855 | ||||||||||
Data processing | 942 | 993 | 703 | 3,411 | 2,827 | ||||||||||
Professional services | 1,018 | 1,493 | 843 | 5,261 | 2,837 | ||||||||||
Other expenses | 1,814 | 1,224 | 1,068 | 6,036 | 3,756 | ||||||||||
Total noninterest expense | 13,075 | 11,727 | 10,157 | 48,244 | 37,553 | ||||||||||
Income before provision for income taxes | 10,533 | 8,965 | 9,970 | 34,930 | 29,863 | ||||||||||
Provision for income taxes | 3,102 | 2,614 | 2,891 | 10,233 | 8,833 | ||||||||||
Net income | $ | 7,431 | $ | 6,351 | $ | 7,079 | $ | 24,697 | $ | 21,030 | |||||
Net income available to common shareholders | $ | 7,383 | $ | 6,306 | $ | 7,002 | $ | 24,495 | $ | 20,746 | |||||
Earnings per share | |||||||||||||||
Basic earnings per share | $ | 1.33 | $ | 1.14 | $ | 1.26 | $ | 4.40 | $ | 3.75 | |||||
Diluted earnings per share | $ | 1.31 | $ | 1.12 | $ | 1.24 | $ | 4.33 | $ | 3.69 | |||||
Average shares outstanding | 5,561,376 | 5,549,480 | 5,547,422 | 5,561,358 | 5,535,581 | ||||||||||
Diluted average shares outstanding | 5,655,355 | 5,640,841 | 5,638,186 | 5,658,434 | 5,617,017 |
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 | $ | 91,324 | $ | 756 | 3.28 | % | $ | 77,353 | $ | 372 | 1.91 | % | $ | 171,279 | $ | 63 | 0.15 | % | |||||||||
Investment securities | 114,390 | 592 | 2.07 | % | 122,184 | 578 | 1.89 | % | 96,722 | 351 | 1.44 | % | |||||||||||||||
Loans, including LHFS | 1,527,863 | 24,717 | 6.42 | % | 1,438,489 | 21,028 | 5.80 | % | 1,222,234 | 16,942 | 5.50 | % | |||||||||||||||
Total interest-earning assets | 1,733,577 | 26,065 | 5.97 | % | 1,638,026 | 21,978 | 5.32 | % | 1,490,235 | 17,356 | 4.62 | % | |||||||||||||||
Noninterest-earning assets | 25,627 | 27,465 | 24,348 | ||||||||||||||||||||||||
Total Assets | $ | 1,759,204 | $ | 1,665,491 | $ | 1,514,583 | |||||||||||||||||||||
Interest-Bearing Liabilities | |||||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 141,030 | $ | 295 | 0.83 | % | $ | 92,986 | $ | 166 | 0.71 | % | $ | 74,158 | $ | 14 | 0.07 | % | |||||||||
Money market | 597,670 | 1,674 | 1.11 | % | 535,473 | 680 | 0.50 | % | 504,171 | 202 | 0.16 | % | |||||||||||||||
Savings deposits | 13,444 | 18 | 0.53 | % | 13,437 | 8 | 0.24 | % | 10,602 | 3 | 0.11 | % | |||||||||||||||
Certificates of deposit | 101,202 | 1,162 | 4.56 | % | 69,676 | 157 | 0.89 | % | 68,408 | 134 | 0.78 | % | |||||||||||||||
Total Interest-Bearing Deposits | 853,346 | 3,149 | 1.46 | % | 711,572 | 1,011 | 0.56 | % | 657,339 | 353 | 0.21 | % | |||||||||||||||
FHLB advances | 12,195 | 112 | 3.64 | % | 15,299 | 92 | 2.39 | % | 10,000 | 42 | 1.67 | % | |||||||||||||||
Other borrowings | 18,063 | 208 | 4.57 | % | 17,951 | 272 | 6.06 | % | 17,945 | 272 | 6.01 | % | |||||||||||||||
Total Interest-Bearing Liabilities | 30,258 | 320 | 4.20 | % | 33,250 | 364 | 4.34 | % | 27,945 | 314 | 4.46 | % | |||||||||||||||
Noninterest-bearing deposits | 720,656 | 771,167 | 689,438 | ||||||||||||||||||||||||
Total Funding Sources | 1,604,260 | 3,469 | 0.86 | % | 1,515,989 | 1,375 | 0.36 | % | 1,374,722 | 667 | 0.19 | % | |||||||||||||||
Noninterest-bearing liabilities | 13,614 | 4,775 | 12,474 | ||||||||||||||||||||||||
Shareholders' equity | 141,330 | 144,727 | 127,387 | ||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 1,759,204 | $ | 1,665,491 | $ | 1,514,583 | |||||||||||||||||||||
Net interest income/spread | $ | 22,596 | 5.11 | % | $ | 20,603 | 4.96 | % | $ | 16,689 | 4.43 | % | |||||||||||||||
Net interest margin | 5.17 | % | 4.99 | % | 4.44 | % |
Consolidated average balance sheet, interest, yield and rates | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Year to Date | |||||||||||||||||||
Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | ||||||||||||||
Interest-Earnings Assets: | |||||||||||||||||||
Deposits in other financial institutions | $ | 96,277 | $ | 1,467 | 1.52 | % | $ | 172,268 | $ | 221 | 0.13 | % | |||||||
Investment securities | 117,870 | 2,143 | 1.82 | % | 84,261 | 1,338 | 1.59 | % | |||||||||||
Loans | 1,394,369 | 80,922 | 5.80 | % | 1,145,320 | 61,806 | 5.40 | % | |||||||||||
Total interest-earning assets | 1,608,516 | 84,532 | 5.26 | % | 1,401,849 | 63,365 | 4.52 | % | |||||||||||
Noninterest-earning assets | 25,719 | 21,115 | |||||||||||||||||
Total Assets | $ | 1,634,235 | $ | 1,422,964 | |||||||||||||||
Interest-Bearing Liabilities | |||||||||||||||||||
Interest-bearing transaction accounts | $ | 100,216 | $ | 530 | 0.53 | % | $ | 66,575 | $ | 50 | 0.08 | % | |||||||
Money market | 531,317 | 2,789 | 0.52 | % | 463,595 | 915 | 0.20 | % | |||||||||||
Savings deposits | 13,654 | 33 | 0.24 | % | 9,564 | 10 | 0.10 | % | |||||||||||
Certificates of deposit | 76,717 | 1,545 | 2.01 | % | 78,193 | 714 | 0.91 | % | |||||||||||
Total Interest-Bearing Deposits | 721,904 | 4,897 | 0.68 | % | 617,927 | 1,689 | 0.27 | % | |||||||||||
FHLB advances | 11,889 | 288 | 2.42 | % | 34,521 | 1,798 | 5.21 | % | |||||||||||
Other borrowings | 17,978 | 1,023 | 5.69 | % | 17,943 | 1,087 | 6.06 | % | |||||||||||
Total Interest-Bearing Liabilities | 29,867 | 1,311 | 4.39 | % | 52,464 | 2,885 | 5.50 | % | |||||||||||
Noninterest-bearing deposits | 733,313 | 621,042 | |||||||||||||||||
Total Funding Sources | 1,485,084 | 6,208 | 0.42 | % | 1,291,433 | 4,574 | 0.35 | % | |||||||||||
Noninterest-bearing liabilities | 13,120 | 13,180 | |||||||||||||||||
Shareholders' equity | 136,031 | 118,351 | |||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 1,634,235 | $ | 1,422,964 | |||||||||||||||
Net interest income/spread | $ | 78,324 | 4.84 | % | $ | 58,791 | 4.17 | % | |||||||||||
Net interest margin | 4.87 | % | 4.19 | % |
Condensed Balance Sheets | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 130,408 | $ | 102,173 | $ | 88,792 | $ | 124,015 | $ | 149,085 | ||||||||||
Interest-bearing time deposits with other institutions | 6,157 | 6,157 | 6,157 | 5,817 | 5,760 | |||||||||||||||
Investment securities | 104,652 | 107,332 | 113,565 | 114,382 | 102,066 | |||||||||||||||
Loans held for sale | 6,981 | 7,789 | 4,460 | 1,999 | 24,658 | |||||||||||||||
Total loans held-for-investment (excluding PPP loans) | 1,586,681 | 1,485,749 | 1,376,801 | 1,276,043 | 1,188,634 | |||||||||||||||
SBA PPP loans | 1,279 | 1,349 | 2,718 | 8,795 | 35,524 | |||||||||||||||
Allowance for loan losses | (19,152 | ) | (19,092 | ) | (17,776 | ) | (17,117 | ) | (16,974 | ) | ||||||||||
Net loans | 1,568,808 | 1,468,006 | 1,361,743 | 1,267,721 | 1,207,184 | |||||||||||||||
Right of use asset | 3,265 | 2,669 | 3,037 | 3,400 | 3,759 | |||||||||||||||
Premises and equipment, net | 1,742 | 2,040 | 2,640 | 2,813 | 2,294 | |||||||||||||||
Other assets and interest receivable | 31,498 | 30,735 | 31,708 | 25,335 | 22,278 | |||||||||||||||
Total assets | $ | 1,853,511 | $ | 1,726,901 | $ | 1,612,102 | $ | 1,545,482 | $ | 1,517,084 | ||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||
Noninterest Bearing | $ | 691,392 | $ | 763,227 | $ | 747,006 | $ | 724,469 | $ | 682,589 | ||||||||||
Interest Bearing | 983,730 | 767,371 | 693,646 | 646,545 | 663,074 | |||||||||||||||
Total Deposits | 1,675,122 | 1,530,598 | 1,440,652 | 1,371,014 | 1,345,663 | |||||||||||||||
Borrowings | 17,954 | 47,952 | 27,950 | 27,948 | 27,947 | |||||||||||||||
Accrued interest payable and other liabilities | 17,111 | 13,417 | 13,305 | 14,630 | 15,110 | |||||||||||||||
Total liabilities | 1,710,187 | 1,591,967 | 1,481,907 | 1,413,592 | 1,388,720 | |||||||||||||||
Shareholders' equity | ||||||||||||||||||||
Common stock | 72,221 | 71,671 | 71,516 | 70,899 | 70,850 | |||||||||||||||
Additional paid-in capital | 3,353 | 3,568 | 3,368 | 3,602 | 3,343 | |||||||||||||||
Retained earnings | 77,810 | 70,386 | 64,036 | 61,424 | 54,922 | |||||||||||||||
Accumulated other comprehensive (loss) income | (10,060 | ) | (10,691 | ) | (8,725 | ) | (4,035 | ) | (751 | ) | ||||||||||
Total shareholders' equity | 143,324 | 134,934 | 130,195 | 131,890 | 128,364 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 1,853,511 | $ | 1,726,901 | $ | 1,612,102 | $ | 1,545,482 | $ | 1,517,084 | ||||||||||
Book value per common share | $ | 25.55 | $ | 24.12 | $ | 23.31 | $ | 23.42 | $ | 22.81 | ||||||||||
Tangible book value per common share | $ | 25.02 | $ | 23.51 | $ | 22.68 | $ | 22.80 | $ | 22.26 | ||||||||||
Shares outstanding | 5,609,025 | 5,594,380 | 5,584,465 | 5,630,993 | 5,627,735 |
Condensed Statements of Income | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||||
For the three months ended | |||||||||||||||||||
Interest income | $ | 26,065 | $ | 21,978 | $ | 18,706 | $ | 17,781 | $ | 17,356 | |||||||||
Interest expense | 3,469 | 1,375 | 723 | 640 | 667 | ||||||||||||||
Net interest income | 22,596 | 20,603 | 17,983 | 17,141 | 16,689 | ||||||||||||||
Provision for loan losses | 60 | 1,316 | 659 | 142 | 834 | ||||||||||||||
Net interest income after provision for loan losses | 22,536 | 19,287 | 17,324 | 16,999 | 15,855 | ||||||||||||||
Noninterest income | 1,072 | 1,405 | 1,442 | 3,109 | 4,272 | ||||||||||||||
Compensation and employee benefits | 8,482 | 7,261 | 7,374 | 7,313 | 6,802 | ||||||||||||||
Occupancy and equipment | 819 | 756 | 808 | 723 | 741 | ||||||||||||||
Data processing | 942 | 993 | 824 | 653 | 703 | ||||||||||||||
Professional services | 1,018 | 1,493 | 1,835 | 915 | 843 | ||||||||||||||
Other expenses | 1,814 | 1,224 | 1,759 | 1,239 | 1,068 | ||||||||||||||
Total noninterest expense | 13,075 | 11,727 | 12,600 | 10,843 | 10,157 | ||||||||||||||
Income before provision for income taxes | 10,533 | 8,965 | 6,166 | 9,265 | 9,970 | ||||||||||||||
Income taxes | 3,102 | 2,614 | 1,769 | 2,747 | 2,891 | ||||||||||||||
Net income | $ | 7,431 | $ | 6,351 | $ | 4,397 | $ | 6,518 | $ | 7,079 | |||||||||
Net income available to common shareholders | $ | 7,383 | $ | 6,306 | $ | 4,347 | $ | 6,448 | $ | 7,002 | |||||||||
Earnings per share | |||||||||||||||||||
Basic earnings per share | $ | 1.33 | $ | 1.14 | $ | 0.78 | $ | 1.16 | $ | 1.26 | |||||||||
Diluted earnings per share | $ | 1.31 | $ | 1.12 | $ | 0.77 | $ | 1.14 | $ | 1.24 | |||||||||
Average shares outstanding | 5,561,376 | 5,549,480 | 5,543,065 | 5,568,400 | 5,547,422 | ||||||||||||||
Diluted average shares outstanding | 5,655,355 | 5,640,841 | 5,639,282 | 5,672,701 | 5,638,186 | ||||||||||||||
Performance Ratios | |||||||||||||||||||
ROAA | 1.68 | % | 1.51 | % | 1.11 | % | 1.74 | % | 1.91 | % | |||||||||
ROAE | 20.86 | % | 17.41 | % | 13.28 | % | 19.95 | % | 22.72 | % | |||||||||
ROATCE (1) | 21.37 | % | 17.85 | % | 13.64 | % | 20.48 | % | 23.25 | % | |||||||||
Net interest margin | 5.17 | % | 4.99 | % | 4.61 | % | 4.65 | % | 4.44 | % | |||||||||
Net interest spread | 5.11 | % | 4.96 | % | 4.60 | % | 4.63 | % | 4.43 | % | |||||||||
Efficiency ratio (1) | 55.24 | % | 53.29 | % | 64.86 | % | 53.55 | % | 48.46 | % | |||||||||
Noninterest expense / average assets | 2.95 | % | 2.79 | % | 3.17 | % | 2.90 | % | 2.66 | % | |||||||||
(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 | $ | 1,759,204 | $ | 1,665,491 | $ | 1,592,276 | $ | 1,516,352 | $ | 1,514,583 | |||||||||
Earning assets | $ | 1,733,577 | $ | 1,638,026 | $ | 1,564,662 | $ | 1,494,850 | $ | 1,490,235 | |||||||||
Total loans, including loans held for sale | $ | 1,527,863 | $ | 1,438,489 | $ | 1,339,095 | $ | 1,268,695 | $ | 1,222,234 | |||||||||
Total deposits | $ | 1,574,002 | $ | 1,482,740 | $ | 1,419,648 | $ | 1,341,631 | $ | 1,346,777 | |||||||||
Total shareholders' equity | $ | 141,330 | $ | 144,727 | $ | 132,789 | $ | 132,472 | $ | 127,387 | |||||||||
Loan Balances by Type | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Real estate - investor owned | $ | 476,404 | $ | 403,950 | $ | 390,628 | $ | 350,152 | $ | 324,167 | |||||||||
Real estate - owner occupied | 394,077 | 382,689 | 359,270 | 371,840 | 339,081 | ||||||||||||||
Real estate - multifamily | 130,901 | 136,841 | 121,693 | 105,964 | 97,285 | ||||||||||||||
Real estate - single family | 118,502 | 107,728 | 94,212 | 89,630 | 86,400 | ||||||||||||||
Commercial business | 404,640 | 393,020 | 359,692 | 307,421 | 294,950 | ||||||||||||||
SBA PPP loans | 1,279 | 1,349 | 2,718 | 8,795 | 35,524 | ||||||||||||||
Land and construction | 56,153 | 55,418 | 44,856 | 44,856 | 39,702 | ||||||||||||||
Consumer | 6,004 | 6,103 | 6,450 | 6,180 | 7,049 | ||||||||||||||
Total loans held for investment | $ | 1,587,960 | $ | 1,487,098 | $ | 1,379,519 | $ | 1,284,838 | $ | 1,224,158 | |||||||||
Deposits by Type | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Non interest bearing DDA | $ | 691,392 | $ | 763,227 | $ | 747,006 | $ | 724,469 | $ | 682,589 | |||||||||
Interest bearing DDA | 174,248 | 95,677 | 93,405 | 75,904 | 81,788 | ||||||||||||||
Savings & MMA | 655,052 | 591,408 | 533,145 | 503,552 | 513,070 | ||||||||||||||
Retail CD | 3,486 | 3,478 | 3,387 | 3,384 | 5,281 | ||||||||||||||
Jumbo CD | 150,944 | 76,808 | 63,709 | 63,705 | 62,935 | ||||||||||||||
Total deposits | $ | 1,675,122 | $ | 1,530,598 | $ | 1,440,652 | $ | 1,371,014 | $ | 1,345,663 | |||||||||
Asset Quality | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Total loans held-for-investment | $ | 1,587,960 | $ | 1,487,098 | $ | 1,379,519 | $ | 1,284,838 | $ | 1,224,158 | |||||||||
Allowance for Loan Losses | $ | (19,152 | ) | $ | (19,092 | ) | $ | (17,776 | ) | $ | (17,117 | ) | $ | (16,975 | ) | ||||
30-89 day past due loans | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||
90+ day past due loans | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||
Nonaccrual loans | $ | 3,880 | $ | 4,593 | $ | 1,453 | $ | 1,453 | $ | 1,510 | |||||||||
NPAs / Assets | 0.21 | % | 0.27 | % | 0.09 | % | 0.09 | % | 0.10 | % | |||||||||
NPLs / Total loans held-for-investment & OREO | 0.24 | % | 0.31 | % | 0.11 | % | 0.11 | % | 0.12 | % | |||||||||
Net quarterly charge-offs | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||
Net charge-offs/avg loans (annualized) | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | |||||||||
Allowance for loan losses to loans HFI | 1.21 | % | 1.28 | % | 1.29 | % | 1.33 | % | 1.39 | % | |||||||||
Allowance for loan losses to nonaccrual loans | 493.61 | % | 415.68 | % | 1,223.4 | % | 1,178.05 | % | 1,124.11 | % |
(Unaudited) | |||||||||||||||||||
The following tables present a reconciliation of non-GAAP financial measures to GAAP measures for: efficiency ratio, pretax pre-provision net revenue, average tangible common equity, 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 | $ | 13,075 | $ | 11,727 | $ | 12,600 | $ | 10,843 | $ | 10,157 | |||||||||
Net interest income | 22,596 | 20,603 | 17,983 | 17,141 | 16,689 | ||||||||||||||
Noninterest income | 1,072 | 1,405 | 1,442 | 3,109 | 4,272 | ||||||||||||||
Total net interest income and noninterest income | 23,668 | 22,008 | 19,425 | 20,250 | 20,961 | ||||||||||||||
Efficiency ratio (non-GAAP) | 55.2 | % | 53.3 | % | 64.9 | % | 53.5 | % | 48.5 | % | |||||||||
Pretax pre-provision net revenue | |||||||||||||||||||
Net interest income | $ | 22,596 | $ | 20,603 | $ | 17,983 | $ | 17,141 | $ | 16,689 | |||||||||
Noninterest income | 1,072 | 1,405 | 1,442 | 3,109 | 4,272 | ||||||||||||||
Total net interest income and noninterest income | 23,668 | 22,008 | 19,425 | 20,250 | 20,961 | ||||||||||||||
Less: Noninterest expense | 13,075 | 11,727 | 12,600 | 10,843 | 10,157 | ||||||||||||||
Pretax pre-provision net revenue (non-GAAP) | $ | 10,593 | $ | 10,281 | $ | 6,825 | $ | 9,407 | $ | 10,804 | |||||||||
Return on Average Assets, Average Equity, Average Tangible Equity | |||||||||||||||||||
Net income | $ | 7,431 | $ | 6,351 | $ | 4,397 | $ | 6,518 | $ | 7,079 | |||||||||
Average assets | 1,759,204 | 1,665,491 | 1,592,276 | 1,516,352 | 1,514,583 | ||||||||||||||
Average shareholders' equity | 141,330 | 144,727 | 132,789 | 132,472 | 127,387 | ||||||||||||||
Less: Average intangible assets | 3,385 | 3,599 | 3,490 | 3,379 | 2,908 | ||||||||||||||
Average tangible common equity (non-GAAP) | 137,945 | 141,128 | 129,299 | 129,093 | 124,479 | ||||||||||||||
Return on average assets | 1.68 | % | 1.51 | % | 1.11 | % | 1.74 | % | 1.91 | % | |||||||||
Return on average equity | 20.86 | % | 17.41 | % | 13.28 | % | 19.95 | % | 22.72 | % | |||||||||
Return on average tangible common equity (non-GAAP) | 21.37 | % | 17.85 | % | 13.64 | % | 20.48 | % | 23.25 | % | |||||||||
Tangible book value per share | |||||||||||||||||||
Total equity | 143,324 | 134,934 | 130,195 | 131,890 | 128,364 | ||||||||||||||
Less: Total intangible assets | 3,007 | 3,502 | 3,525 | 3,079 | 2,374 | ||||||||||||||
Total tangible equity | 140,317 | 131,432 | 126,670 | 128,811 | 125,990 | ||||||||||||||
Shares outstanding | 5,609,025 | 5,594,380 | 5,584,465 | 5,630,993 | 5,627,735 | ||||||||||||||
Tangible book value per share (non-GAAP) | $ | 25.02 | $ | 23.49 | $ | 22.68 | $ | 22.88 | $ | 22.39 |
(Unaudited) | |||||||
The following tables present a reconciliation of non-GAAP financial measures to GAAP measures for: efficiency ratio, pretax pre-provision net revenue, average tangible common equity, 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) | |||||||
Year to Date | |||||||
Efficiency Ratio | |||||||
Noninterest expense | $ | 48,244 | $ | 37,553 | |||
Net interest income | 78,324 | 58,791 | |||||
Noninterest income | 7,028 | 11,338 | |||||
Total net interest income and noninterest income | 85,352 | 70,129 | |||||
Efficiency ratio (non-GAAP) | 56.5 | % | 53.5 | % | |||
Pretax pre-provision net revenue | |||||||
Net interest income | $ | 78,324 | $ | 58,791 | |||
Noninterest income | 7,028 | 11,338 | |||||
Total net interest income and noninterest income | 85,352 | 70,129 | |||||
Less: Noninterest expense | 48,244 | 37,553 | |||||
Pretax pre-provision net revenue (non-GAAP) | $ | 37,108 | $ | 32,576 | |||
Return on Average Assets, Average Equity, Average Tangible Equity | |||||||
Net income | $ | 24,697 | $ | 21,030 | |||
Average assets | 1,634,235 | 1,422,964 | |||||
Average shareholders' equity | 136,031 | 118,351 | |||||
Less: Average intangible assets | 3,464 | 2,194 | |||||
Average tangible common equity(3) | 132,567 | 116,157 | |||||
Return on average assets | 1.51 | % | 1.48 | % | |||
Return on average equity | 18.16 | % | 17.77 | % | |||
Return on average tangible common equity(non-GAAP) | 18.63 | % | 18.10 | % |
Source:
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