Second Quarter Highlights
- Net income for the quarter was
$4.4 million , up 2.4% from the same period in the prior year - Diluted earnings per share of
$0.77 , up 2.7% from the same period in the prior year - Total loans held-for-investment (“HFI”), excluding Paycheck Protection Program (“PPP”) loans, reached
$1.4 billion , an increase of$322.9 million or 30.6% year-over-year and$100.8 million or 7.9% over Q1’22 - Non-interest-bearing demand deposits grew
$143.0 million or 23.7% year over year and$22.5 million from the prior quarter to$747.0 million , representing 51.9% of total deposits - Net interest margin (ex-PPP loans) of 4.57% compared to 4.14% for Q1’21 and compared to 4.51% for Q1’22
- Cost of funding sources remained low at 0.20%
- The provision for loan losses for the second quarter of 2022 was
$659 thousand , an increase of$517 thousand compared to the first quarter of 2022 - Allowance for Loan Losses was 1.29% of total loans HFI (ex-PPP loans)
- Tangible book value per share of
$22.68 , down$0.12 from Q1’22 related to a mark-to-market adjustment on the securities portfolio Private Bancorp of America, Inc. (“PBAM”) well capitalized Tier 1 risk-based capital ratio of 9.51% (preliminary)
Sowers continued, “While global events and the rapidly changing environment have put pressure on the overall financial markets and on our own financial results, our model of providing a concierge experience through our dedicated Teams and our core mission of providing Relationships,
While the
Domestic events, including high inflation, have unfavorably resulted in increased non-interest expense, including employee compensation and professional services. The decline in SBA gain on sale was both a result of lower 7(a) loan volumes and a softer secondary market, which led to an increased efficiency ratio of 64.9% from 53.6% for Q1’22. While the industry faces significant headwinds, including an increased possibility of a recession, our Bank continues to invest in the infrastructure to become more efficient and to support the growth of our Relationship Teams committed to serving our Clients.
As a continuation of the Company’s investments in innovation to support long-term growth and efficiency, during the second quarter, the Company made additional FinTech investments in
“The financial earnings power of PBAM remains resilient based on the first half results of 2022. The Company’s ability to organically grow loans attests to the Company’s successful strategy to stay focused on providing a Distinctly Different service. Diluted EPS for the first half of 2022 of
Isakow added, “We are proud of CalPrivate’s achievements and financial performance to date, however, we remain cautious on the overall macro-economy. We must remain vigilant in our credit and risk management practices as we continue to evaluate the possibility of a near-term global recession due to significant geopolitical and economic challenges stemming from high inflation, energy supply constraints, volatile global politics, and the on-going war in Ukraine.”
STATEMENT OF INCOME
Net Interest Income
Net interest income for the second quarter totaled
Net Interest Margin
The net interest margin for Q2’22 was 4.61% compared to 4.65% for the first quarter of 2022. Excluding PPP-loans, the net interest margin for Q2’22 was 4.57% compared to 4.51% for the first quarter of 2022. The 0.04% decrease in the as reported net interest margin for the second quarter was due to lower loan prepayments and higher cost of deposits. Average portfolio loan yields were 5.37% for Q2’22, compared to 5.51% for Q1’22, including loan prepayment fees. The yield on earning assets for the second quarter was 4.80% for Q2’22 compared with 4.82% for Q1’22 and the cost of funds was 0.20% for Q2’22 compared to 0.19% for Q1’22.
Provision for Loan Losses
The provision for loan losses for the second quarter was
Non-Interest Income
Non-interest income was
Non-Interest Expense
Non-interest expense was
Additionally, the Company remains committed to making investments in the business, including technology, marketing, and staffing. Historically high inflation and low unemployment has resulted in pressure on wages as well as increased costs related to third party service providers. Related to the strong organic loan growth in the second quarter, the Company also increased its reserve for unfunded commitments by
STATEMENT OF FINANCIAL CONDITION
Balance Sheet
At
Asset Quality and Loan Deferrals
The Allowance for Loan Losses increased
As of
Capital Ratios (1)
The Company and the Bank’s capital ratios were in excess of the levels established for “well capitalized” institutions and are as follows:
Tier I leverage ratio | 8.61% | 8.85% | 8.42% |
Tier I risk-based capital ratio | 9.51% | 10.31% | 10.63% |
Total risk-based capital ratio | 12.01% | 12.94% | 13.38% |
Tier I leverage ratio | 9.58% | 9.72% | 9.29% |
Tier I risk-based capital ratio | 10.57% | 11.93% | 11.73% |
Total risk-based capital ratio | 11.82% | 13.18% | 12.98% |
(1)
Stock Repurchase Program
During the second quarter of 2022, PBAM announced that it had completed its stock repurchase program on
About
Investor Relations Contacts
President and Chief Executive Officer
(424) 303-4894
Mag Wangsuwana
Executive Vice President and Chief Financial Officer
(424) 348-2145
Safe Harbor Paragraph
This press release includes forward-looking statements that involve inherent risks and uncertainties.
CONSOLIDATED BALANCE SHEET | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Dollar change | Percentage change | Dollar change | Percentage change | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and due from banks | $ | 15,694 | $ | 17,099 | $ | (1,405 | ) | -8.2 | % | $ | 12,783 | $ | 2,911 | 22.8 | % | ||||||||
Interest-bearing deposits in other financial institutions | 43,857 | 40,878 | 2,979 | 7.3 | % | 13,969 | 29,888 | 214.0 | % | ||||||||||||||
Interest-bearing deposits at | 29,241 | 66,038 | (36,797 | ) | -55.7 | % | 65,356 | (36,115 | ) | -55.3 | % | ||||||||||||
Total cash and due from banks | 88,792 | 124,015 | (35,223 | ) | 28.4 | % | 92,108 | (3,316 | ) | -3.6 | % | ||||||||||||
Interest-bearing time deposits with other institutions | 6,157 | 5,817 | 340 | 5.8 | % | 5,760 | 397 | 6.9 | % | ||||||||||||||
Investment securities available for sale | 113,565 | 114,382 | (817 | ) | -0.7 | % | 88,755 | 24,810 | 28.0 | % | |||||||||||||
Loan held for sale | 4,460 | 1,999 | 2,461 | 123.1 | % | 19,625 | (15,165 | ) | -77.3 | % | |||||||||||||
Total loans held-for-investment | 1,379,519 | 1,284,838 | 94,681 | 7.4 | % | 1,164,611 | 214,908 | 18.5 | % | ||||||||||||||
Allowance for loan losses | (17,776 | ) | (17,117 | ) | (659 | ) | 3.8 | % | (15,708 | ) | (2,068 | ) | 13.2 | % | |||||||||
Net loans | 1,361,743 | 1,267,721 | 94,022 | 7.4 | % | 1,148,903 | 212,840 | 18.5 | % | ||||||||||||||
7,020 | 4,909 | 2,111 | 43.0 | % | 4,909 | 2,111 | 43.0 | % | |||||||||||||||
Right of use asset | 3,037 | 3,400 | (363 | ) | -10.7 | % | 5,185 | (2,148 | ) | -41.4 | % | ||||||||||||
Premises and equipment, net | 2,640 | 2,813 | (173 | ) | -6.2 | % | 2,578 | 62 | 2.4 | % | |||||||||||||
Servicing assets, net | 3,515 | 3,525 | (10 | ) | -0.3 | % | 2,123 | 1,392 | 65.6 | % | |||||||||||||
Deferred tax asset | 9,229 | 7,032 | 2,197 | 31.2 | % | 7,012 | 2,217 | 31.6 | % | ||||||||||||||
Accrued interest receivable | 3,855 | 3,453 | 402 | 11.6 | % | 3,501 | 354 | 10.1 | % | ||||||||||||||
Other assets | 8,089 | 6,416 | 1,673 | 26.1 | % | 2,311 | 5,778 | 250.0 | % | ||||||||||||||
Total assets | $ | 1,612,102 | $ | 1,545,482 | $ | 66,620 | 4.3 | % | $ | 1,382,770 | $ | 229,332 | 16.6 | % | |||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Noninterest bearing | $ | 747,006 | $ | 724,469 | $ | 22,537 | 3.1 | % | $ | 603,914 | $ | 143,092 | 23.7 | % | |||||||||
Interest Bearing | 693,646 | 646,545 | 47,101 | 7.3 | % | 601,530 | 92,116 | 15.3 | % | ||||||||||||||
Total deposits | 1,440,652 | 1,371,014 | 69,638 | 5.1 | % | 1,205,444 | 235,208 | 19.5 | % | ||||||||||||||
FHLB borrowings | 10,000 | 10,000 | - | 0.0 | % | 30,000 | (20,000 | ) | -66.7 | % | |||||||||||||
Other borrowings | 17,950 | 17,948 | 2 | 0.0 | % | 17,943 | 7 | 0.0 | % | ||||||||||||||
Accrued interest payable and other liabilities | 13,305 | 14,630 | (1,325 | ) | -9.1 | % | 13,059 | 246 | 1.9 | % | |||||||||||||
Total liabilities | 1,481,907 | 1,413,592 | 68,315 | 4.8 | % | 1,266,446 | 215,461 | 17.0 | % | ||||||||||||||
Shareholders’ equity | |||||||||||||||||||||||
Common stock | 71,516 | 70,899 | 617 | 0.9 | % | 70,405 | 1,111 | 1.6 | % | ||||||||||||||
Additional paid-in capital | 3,368 | 3,602 | (234 | ) | -6.5 | % | 3,179 | 189 | 5.9 | % | |||||||||||||
Retained earnings | 64,036 | 61,424 | 2,612 | 4.3 | % | 42,810 | 21,226 | 49.6 | % | ||||||||||||||
Accumulated other comprehensive (loss) income | (8,725 | ) | (4,035 | ) | (4,690 | ) | 116.2 | % | (70 | ) | (8,655 | ) | 12364.3 | % | |||||||||
Total stockholders’ equity | 130,195 | 131,890 | (1,695 | ) | -1.3 | % | 116,324 | 13,871 | 11.9 | % | |||||||||||||
Total liabilities and stockholders’ equity | $ | 1,612,102 | $ | 1,545,482 | $ | 66,620 | 4.3 | % | $ | 1,382,770 | $ | 229,332 | 16.6 | % | |||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||||||
For the three months ended | |||||||||||||||||||||
Dollar change | Percentage change | Dollar change | Percentage change | ||||||||||||||||||
Interest Income | |||||||||||||||||||||
Loans | $ | 17,931 | $ | 17,246 | $ | 685 | 4.0 | % | $ | 14,637 | $ | 3,294 | 22.5 | % | |||||||
Investment securities | 571 | 401 | 170 | 42.4 | % | 351 | 220 | 62.7 | % | ||||||||||||
Deposits in other financial institutions | 204 | 134 | 70 | 52.2 | % | 40 | 164 | 410.0 | % | ||||||||||||
Total interest income | 18,706 | 17,781 | 925 | 5.2 | % | 15,028 | 3,678 | 24.5 | % | ||||||||||||
Interest Expense | |||||||||||||||||||||
Deposits | 410 | 327 | 83 | 25.4 | % | 409 | 1 | 0.2 | % | ||||||||||||
Borrowings | 313 | 313 | - | 0.0 | % | 1,020 | (707 | ) | -69.3 | % | |||||||||||
Total interest expense | 723 | 640 | 83 | 13.0 | % | 1,429 | (706 | ) | -49.4 | % | |||||||||||
Net interest income | 17,983 | 17,141 | 842 | 4.9 | % | 13,599 | 4,384 | 32.2 | % | ||||||||||||
Provision for loan losses | 659 | 142 | 517 | 364.1 | % | 1,146 | (487 | ) | -42.5 | % | |||||||||||
Net interest income after provision for loan losses | 17,324 | 16,999 | 325 | 1.9 | % | 12,453 | 4,871 | 39.1 | % | ||||||||||||
Noninterest income: | |||||||||||||||||||||
Service charges on deposit accounts | 299 | 281 | 18 | 6.4 | % | 224 | 57 | 29.4 | % | ||||||||||||
Net gain on sale of loans | 768 | 2,471 | (1,703 | ) | -68.9 | % | 1,476 | 995 | -67.0 | % | |||||||||||
Other noninterest income | 375 | 357 | 18 | 5.0 | % | 171 | 186 | 51.2 | % | ||||||||||||
Total noninterest income | 1,442 | 3,109 | (1,667 | ) | -53.6 | % | 1,871 | 1,238 | -48.6 | % | |||||||||||
Noninterest expense: | |||||||||||||||||||||
Salary and employee benefits | 7,374 | 7,313 | 61 | 0.8 | % | 5,966 | 1,408 | 23.6 | % | ||||||||||||
Occupancy and equipment | 808 | 723 | 85 | 11.8 | % | 820 | (12 | ) | -1.5 | % | |||||||||||
Data processing | 824 | 653 | 171 | 26.2 | % | 690 | 134 | 19.4 | % | ||||||||||||
Professional services | 1,835 | 915 | 920 | 100.5 | % | 791 | 1,044 | 132.0 | % | ||||||||||||
Other expenses | 1,759 | 1,255 | 504 | 40.2 | % | 891 | 868 | 97.4 | % | ||||||||||||
Total noninterest expense | 12,600 | 10,859 | 1,741 | 16.0 | % | 9,158 | 3,442 | 37.6 | % | ||||||||||||
Income before provision for income taxes | 6,166 | 9,249 | (3,083 | ) | -33.3 | % | 6,100 | 66 | 1.1 | % | |||||||||||
Provision for income taxes | 1,769 | 2,747 | (978 | ) | -35.6 | % | 1,806 | (37 | ) | -2.0 | % | ||||||||||
Net income | $ | 4,397 | $ | 6,502 | $ | (2,105 | ) | -32.4 | % | $ | 4,294 | $ | 103 | 2.4 | % | ||||||
Net income available to common shareholders | $ | 4,347 | $ | 6,432 | $ | (2,085 | ) | -32.4 | % | $ | 4,231 | $ | 116 | 2.7 | % | ||||||
Earnings per share | |||||||||||||||||||||
Basic earnings per share | $ | 0.78 | $ | 1.16 | $ | (0.37 | ) | -32.1 | % | $ | 0.76 | $ | 0.02 | 3.2 | % | ||||||
Diluted earnings per share | $ | 0.77 | $ | 1.13 | $ | (0.36 | ) | -32.0 | % | $ | 0.75 | $ | 0.02 | 2.8 | % | ||||||
Average shares outstanding | 5,543,065 | 5,568,400 | (25,335 | ) | -0.5 | % | 5,536,111 | 6,954 | 0.1 | % | |||||||||||
Diluted average shares outstanding | 5,639,282 | 5,672,701 | (33,419 | ) | -0.6 | % | 5,622,075 | 17,207 | 0.3 | % | |||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||
Dollar change | Percentage change | |||||||||||
Interest Income | ||||||||||||
Loans | $ | 35,177 | $ | 28,796 | $ | 6,381 | 22.2 | % | ||||
Investment securities | 972 | 656 | 316 | 48.2 | % | |||||||
Deposits in other financial institutions | 339 | 99 | 240 | 242.4 | % | |||||||
Total interest income | 36,488 | 29,551 | 6,937 | 23.5 | % | |||||||
Interest Expense | ||||||||||||
Deposits | 737 | 926 | (189 | ) | -20.4 | % | ||||||
Borrowings | 626 | 2,239 | (1,613 | ) | -72.0 | % | ||||||
Total interest expense | 1,363 | 3,165 | (1,802 | ) | -56.9 | % | ||||||
Net interest income | 35,125 | 26,386 | 8,739 | 33.1 | % | |||||||
Provision for loan losses | 802 | 1,446 | (644 | ) | -44.5 | % | ||||||
Net interest income after provision for loan losses | 34,323 | 24,940 | 9,383 | 37.6 | % | |||||||
Noninterest income: | ||||||||||||
Service charges on deposit accounts | 580 | 454 | 126 | 27.8 | % | |||||||
Net gain on sale of loans | 3,239 | 3,802 | (563 | ) | -14.8 | % | ||||||
Gain on sale of investment securities | - | - | - | N/A | ||||||||
Other noninterest income | 732 | 420 | 312 | 74.3 | % | |||||||
Total noninterest income | 4,551 | 4,676 | (125 | ) | -2.7 | % | ||||||
Noninterest expense: | ||||||||||||
Salary and employee benefits | 14,687 | 10,881 | 3,806 | 35.0 | % | |||||||
Occupancy and equipment | 1,531 | 1,630 | (99 | ) | -6.1 | % | ||||||
Data processing | 1,476 | 1,326 | 150 | 11.3 | % | |||||||
Professional services | 2,750 | 1,441 | 1,309 | 90.8 | % | |||||||
Other expenses | 2,998 | 1,654 | 1,344 | 81.3 | % | |||||||
Total noninterest expense | 23,442 | 16,932 | 6,510 | 38.4 | % | |||||||
Income before provision for income taxes | 15,432 | 12,684 | 2,748 | 21.7 | % | |||||||
Provision for income tax | 4,517 | 3,784 | 733 | 19.4 | % | |||||||
Net income | $ | 10,915 | $ | 8,900 | $ | 2,015 | 22.6 | % | ||||
Net income available to common shareholders | $ | 10,794 | $ | 8,761 | $ | 2,033 | 23.2 | % | ||||
Earnings per share | ||||||||||||
Basic earnings per share | $ | 1.94 | $ | 1.59 | $ | 0.35 | 22.0 | % | ||||
Diluted earnings per share | $ | 1.91 | $ | 1.56 | $ | 0.35 | 22.4 | % | ||||
Average shares outstanding | 5,555,662 | 5,525,557 | 30,105 | 0.5 | % | |||||||
Diluted average shares outstanding | 5,652,071 | 5,601,705 | 50,366 | 0.9 | % | |||||||
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 | $ | 100,017 | $ | 205 | 0.82 | % | $ | 116,903 | $ | 134 | 0.46 | % | $ | 137,902 | $ | 40 | 0.12 | % | |||||||||
Investment securities | 125,550 | 571 | 1.82 | % | 109,252 | 401 | 1.47 | % | 88,132 | 351 | 1.59 | % | |||||||||||||||
Loans | 1,339,095 | 17,931 | 5.37 | % | 1,268,695 | 17,246 | 5.51 | % | 1,125,958 | 14,637 | 5.21 | % | |||||||||||||||
Total interest-earning assets | 1,564,662 | 18,707 | 4.80 | % | 1,494,850 | 17,781 | 4.82 | % | 1,351,992 | 15,028 | 4.46 | % | |||||||||||||||
Noninterest-earning assets | 27,614 | 21,502 | 18,217 | ||||||||||||||||||||||||
Total Assets | $ | 1,592,276 | $ | 1,516,352 | $ | 1,370,209 | |||||||||||||||||||||
Interest-Bearing Liabilities | |||||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 87,682 | $ | 54 | 0.25 | % | $ | 78,557 | $ | 16 | 0.08 | % | $ | 65,283 | $ | 12 | 0.07 | % | |||||||||
Money market | 492,838 | 241 | 0.20 | % | 498,146 | 192 | 0.16 | % | 424,371 | 231 | 0.22 | % | |||||||||||||||
Savings deposits | 14,216 | 3 | 0.01 | % | 13,523 | 3 | 0.09 | % | 9,229 | 2 | 0.09 | % | |||||||||||||||
Certificates of deposit | 67,184 | 111 | 0.66 | % | 68,525 | 116 | 0.69 | % | 75,537 | 164 | 0.87 | % | |||||||||||||||
Total Interest-Bearing Deposits | 661,920 | 409 | 0.25 | % | 658,751 | 327 | 0.20 | % | 574,420 | 409 | 0.29 | % | |||||||||||||||
FHLB advances | 10,000 | 42 | 1.64 | % | 10,000 | 41 | 1.66 | % | 41,153 | 748 | 7.29 | % | |||||||||||||||
Other borrowings | 17,948 | 272 | 6.06 | % | 17,948 | 272 | 6.06 | % | 17,942 | 272 | 6.06 | % | |||||||||||||||
Total Interest-Bearing Liabilities | 27,948 | 314 | 4.49 | % | 27,948 | 313 | 4.54 | % | 59,095 | 1,020 | 6.92 | % | |||||||||||||||
Noninterest-bearing deposits | 757,728 | 682,880 | 609,932 | ||||||||||||||||||||||||
Total Funding Sources | 1,447,596 | 723 | 0.20 | % | 1,369,579 | 640 | 0.19 | % | 1,243,447 | 1,429 | 0.46 | % | |||||||||||||||
Noninterest-bearing liabilities | 11,891 | 14,301 | 11,881 | ||||||||||||||||||||||||
Shareholders’ equity | 132,789 | 132,472 | 114,881 | ||||||||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 1,592,276 | $ | 1,516,352 | $ | 1,370,209 | |||||||||||||||||||||
Net interest income/spread | $ | 17,984 | 4.60 | % | $ | 17,141 | 4.63 | % | $ | 13,599 | 4.00 | % | |||||||||||||||
Net interest margin | 4.61 | % | 4.65 | % | 4.03 | % | |||||||||||||||||||||
Consolidated average balance sheet, interest, yield and rates | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | |||||||||||||
Interest-Earnings Assets: | ||||||||||||||||||
Deposits in other financial institutions | $ | 108,413 | $ | 339 | 0.63 | % | $ | 187,826 | $ | 99 | 0.11 | % | ||||||
Investment securities | 117,447 | 972 | 1.67 | % | 73,759 | 656 | 1.79 | % | ||||||||||
Loans | 1,304,089 | 35,177 | 5.44 | % | 1,085,617 | 28,796 | 5.35 | % | ||||||||||
Total interest-earning assets | 1,529,949 | 36,488 | 4.81 | % | 1,347,202 | 29,551 | 4.42 | % | ||||||||||
Noninterest-earning assets | 24,572 | 19,368 | ||||||||||||||||
Total Assets | $ | 1,554,521 | $ | 1,366,570 | ||||||||||||||
Interest-Bearing Liabilities | ||||||||||||||||||
Interest-bearing transaction accounts | $ | 83,145 | $ | 68 | 0.16 | % | $ | 61,682 | $ | 24 | 0.08 | % | ||||||
Money market | 495,478 | 433 | 0.18 | % | 427,877 | 466 | 0.22 | % | ||||||||||
Savings deposits | 13,872 | 7 | 0.10 | % | 8,999 | 5 | 0.11 | % | ||||||||||
Certificates of deposit | 67,851 | 227 | 0.67 | % | 87,960 | 431 | 0.99 | % | ||||||||||
Total Interest-Bearing Deposits | 660,346 | 735 | 0.22 | % | 586,518 | 926 | 0.32 | % | ||||||||||
FHLB advances | 10,000 | 83 | 1.67 | % | 57,017 | 1,696 | 6.00 | % | ||||||||||
Other borrowings | 17,949 | 544 | 6.11 | % | 17,941 | 545 | 6.06 | % | ||||||||||
Total Interest-Bearing Liabilities | 27,949 | 627 | 4.52 | % | 74,958 | 2,239 | 6.03 | % | ||||||||||
Noninterest-bearing deposits | 720,504 | 578,652 | ||||||||||||||||
Total Funding Sources | 1,408,799 | 1,362 | 0.19 | % | 1,240,128 | 3,165 | 0.51 | % | ||||||||||
Noninterest-bearing liabilities | 13,084 | 13,845 | ||||||||||||||||
Shareholders’ equity | 132,638 | 112,597 | ||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 1,554,521 | $ | 1,366,570 | ||||||||||||||
Net interest income/spread | $ | 35,126 | 4.61 | % | $ | 26,386 | 3.91 | % | ||||||||||
Net interest margin | 4.63 | % | 3.95 | % | ||||||||||||||
Condensed Balance Sheets | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||||
Assets | |||||||||||||||||||
Cash and due from banks | $ | 88,792 | $ | 124,015 | $ | 149,085 | $ | 138,553 | $ | 92,108 | |||||||||
Interest-bearing time deposits with other institutions | 6,157 | 5,817 | 5,760 | 5,760 | 5,760 | ||||||||||||||
Investment securities | 113,565 | 114,382 | 102,065 | 93,099 | 88,755 | ||||||||||||||
Loans held for sale | 4,460 | 1,999 | 24,658 | 35,448 | 19,625 | ||||||||||||||
Total loans held-for-investment (excluding PPP loans) | 1,376,801 | 1,276,043 | 1,188,634 | 1,117,983 | 1,053,938 | ||||||||||||||
SBA PPP loans | 2,718 | 8,795 | 35,524 | 74,152 | 110,673 | ||||||||||||||
Allowance for loan losses | (17,776 | ) | (17,117 | ) | (16,975 | ) | (16,141 | ) | (15,708 | ) | |||||||||
Net loans | 1,361,743 | 1,267,721 | 1,207,183 | 1,175,994 | 1,148,903 | ||||||||||||||
Right of use asset | 3,037 | 3,400 | 3,760 | 4,115 | 5,185 | ||||||||||||||
Premises and equipment, net | 2,640 | 2,813 | 2,294 | 2,459 | 2,578 | ||||||||||||||
Other assets and interest receivable | 31,708 | 25,335 | 22,279 | 19,254 | 19,856 | ||||||||||||||
Total assets | $ | 1,612,102 | $ | 1,545,482 | $ | 1,517,084 | $ | 1,474,682 | $ | 1,382,770 | |||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||
Liabilities | |||||||||||||||||||
Noninterest Bearing | $ | 747,006 | $ | 724,469 | $ | 682,589 | $ | 646,233 | $ | 603,914 | |||||||||
Interest Bearing | 693,646 | 646,545 | 663,074 | 667,012 | 601,530 | ||||||||||||||
Total Deposits | 1,440,652 | 1,371,014 | 1,345,663 | 1,313,245 | 1,205,444 | ||||||||||||||
Borrowings | 27,950 | 27,948 | 27,947 | 27,945 | 47,943 | ||||||||||||||
Accrued interest payable and other liabilities | 13,305 | 14,630 | 15,110 | 11,613 | 13,059 | ||||||||||||||
Total liabilities | 1,481,907 | 1,413,592 | 1,388,720 | 1,352,803 | 1,266,446 | ||||||||||||||
Shareholders’ equity | |||||||||||||||||||
Common stock | 71,516 | 70,899 | 70,850 | 70,470 | 70,405 | ||||||||||||||
Additional paid-in capital | 3,368 | 3,602 | 3,343 | 3,465 | 3,179 | ||||||||||||||
Retained earnings | 64,036 | 61,424 | 54,922 | 47,845 | 42,810 | ||||||||||||||
Accumulated other comprehensive (loss) income | (8,725 | ) | (4,035 | ) | (751 | ) | 99 | (70 | ) | ||||||||||
Total shareholders’ equity | 130,195 | 131,890 | 128,364 | 121,879 | 116,324 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,612,102 | $ | 1,545,482 | $ | 1,517,084 | $ | 1,474,682 | $ | 1,382,770 | |||||||||
Book value per common share | $ | 23.31 | $ | 23.42 | $ | 22.81 | $ | 21.70 | $ | 20.71 | |||||||||
Tangible book value per common share | $ | 22.68 | $ | 22.80 | $ | 22.26 | $ | 21.27 | $ | 20.33 | |||||||||
Shares outstanding | 5,584,465 | 5,630,993 | 5,627,735 | 5,617,273 | 5,617,020 | ||||||||||||||
Regulatory Capital Ratios (PBAM) 1 | |||||||||||||||||||
Tier 1 leverage ratio | 8.61 | % | 8.85 | % | 8.42 | % | 8.19 | % | 8.36 | % | |||||||||
Tier 1 risk-based capital ratio | 9.51 | % | 10.31 | % | 10.63 | % | 10.64 | % | 10.74 | % | |||||||||
Common equity Tier 1 ratio | 9.51 | % | 10.31 | % | 10.63 | % | 10.64 | % | 10.74 | % | |||||||||
Total risk-based capital ratio | 12.01 | % | 12.94 | % | 13.38 | % | 13.48 | % | 13.68 | % | |||||||||
Tangible equity / tangible assets | 8.46 | % | 8.66 | % | 8.35 | % | 8.12 | % | 8.28 | % | |||||||||
1 Preliminary ratios for | |||||||||||||||||||
Condensed Statements of Income | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||||
Interest income | $ | 18,706 | $ | 17,781 | $ | 17,356 | $ | 16,458 | $ | 15,028 | |||||||||
Interest expense | 723 | 640 | 667 | 741 | 1,429 | ||||||||||||||
Net interest income | 17,983 | 17,141 | 16,689 | 15,717 | 13,599 | ||||||||||||||
Provision for loan losses | 659 | 142 | 834 | 433 | 1,146 | ||||||||||||||
Net interest income after provision for loan losses | 17,324 | 16,999 | 15,855 | 15,284 | 12,453 | ||||||||||||||
Noninterest income | 1,442 | 3,109 | 4,265 | 2,389 | 2,805 | ||||||||||||||
Salary and employee benefits | 7,374 | 7,313 | 6,492 | 6,595 | 5,966 | ||||||||||||||
Occupancy and equipment | 808 | 723 | 741 | 1,484 | 820 | ||||||||||||||
Data processing | 824 | 653 | 703 | 799 | 690 | ||||||||||||||
Professional services | 1,835 | 915 | 843 | 552 | 791 | ||||||||||||||
Other expenses | 1,759 | 1,255 | 1,060 | 1,034 | 891 | ||||||||||||||
Total noninterest expense | 12,600 | 10,859 | 9,839 | 10,464 | 9,158 | ||||||||||||||
Income before provision for income taxes | 6,166 | 9,249 | 10,281 | 7,209 | 6,100 | ||||||||||||||
Income taxes | 1,769 | 2,747 | 2,986 | 2,158 | 1,806 | ||||||||||||||
Net income | $ | 4,397 | $ | 6,502 | $ | 7,295 | $ | 5,051 | $ | 4,294 | |||||||||
Net income available to common shareholders | $ | 4,347 | $ | 6,432 | $ | 7,204 | $ | 4,984 | $ | 4,231 | |||||||||
Earnings per share | |||||||||||||||||||
Basic earnings per share | $ | 0.78 | $ | 1.16 | $ | 1.30 | $ | 0.90 | $ | 0.76 | |||||||||
Diluted earnings per share | $ | 0.77 | $ | 1.13 | $ | 1.28 | $ | 0.89 | $ | 0.75 | |||||||||
Average shares outstanding | 5,543,065 | 5,568,400 | 5,547,422 | 5,543,403 | 5,536,111 | ||||||||||||||
Diluted average shares outstanding | 5,639,282 | 5,672,701 | 5,638,186 | 5,629,900 | 5,622,075 | ||||||||||||||
Performance Ratios | |||||||||||||||||||
ROAA | 1.12 | % | 1.74 | % | 1.91 | % | 1.39 | % | 1.26 | % | |||||||||
ROAE | 13.43 | % | 19.91 | % | 22.72 | % | 16.61 | % | 14.99 | % | |||||||||
ROTE | 13.62 | % | 20.20 | % | 23.07 | % | 16.88 | % | 15.25 | % | |||||||||
Net interest margin | 4.61 | % | 4.65 | % | 4.44 | % | 4.39 | % | 4.03 | % | |||||||||
Net interest spread | 4.60 | % | 4.63 | % | 4.43 | % | 4.38 | % | 4.00 | % | |||||||||
Efficiency ratio | 64.86 | % | 53.62 | % | 46.96 | % | 57.79 | % | 55.83 | % | |||||||||
Noninterest expense / average assets | 3.21 | % | 2.90 | % | 2.58 | % | 2.88 | % | 2.68 | % | |||||||||
(Unaudited) | |||||||||||||||||||
Selected Quarterly Average Balances | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Total assets | $ | 1,592,276 | $ | 1,516,352 | $ | 1,514,583 | $ | 1,442,278 | $ | 1,370,209 | |||||||||
Earning assets | $ | 1,564,662 | $ | 1,494,850 | $ | 1,490,235 | $ | 1,420,970 | $ | 1,351,992 | |||||||||
Total loans, including loans held for sale | $ | 1,339,095 | $ | 1,268,695 | $ | 1,222,234 | $ | 1,185,865 | $ | 1,125,958 | |||||||||
Total deposits | $ | 1,419,648 | $ | 1,341,631 | $ | 1,346,777 | $ | 1,276,349 | $ | 1,184,352 | |||||||||
Total equity | $ | 132,789 | $ | 132,472 | $ | 127,387 | $ | 120,618 | $ | 114,881 | |||||||||
Loan Balances by Type | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Real estate - investor owned | $ | 390,628 | $ | 350,152 | $ | 324,167 | $ | 307,469 | $ | 293,461 | |||||||||
Real estate - owner occupied | 359,270 | 371,840 | 339,081 | 329,985 | 313,579 | ||||||||||||||
Real estate - multifamily | 121,693 | 105,964 | 97,285 | 82,460 | 72,790 | ||||||||||||||
Real estate - single family | 94,212 | 89,630 | 86,399 | 81,239 | 90,223 | ||||||||||||||
Commercial business | 359,692 | 307,421 | 294,944 | 274,708 | 244,493 | ||||||||||||||
SBA PPP loans | 2,718 | 8,795 | 35,524 | 74,152 | 110,673 | ||||||||||||||
Land and construction | 44,856 | 44,856 | 39,702 | 34,996 | 32,413 | ||||||||||||||
Consumer | 6,450 | 6,180 | 7,049 | 7,126 | 6,979 | ||||||||||||||
Total loans held for investment | $ | 1,379,519 | $ | 1,284,838 | $ | 1,224,151 | $ | 1,192,135 | $ | 1,164,611 | |||||||||
Deposits by Type | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Non interest bearing DDA | $ | 747,006 | $ | 724,469 | $ | 682,589 | $ | 646,233 | $ | 603,914 | |||||||||
Interest bearing DDA | 93,405 | 75,904 | 81,788 | 68,056 | 70,320 | ||||||||||||||
Savings & MMA | 533,145 | 503,552 | 513,070 | 530,782 | 463,165 | ||||||||||||||
Retail CD | 3,387 | 3,384 | 5,281 | 5,633 | 5,827 | ||||||||||||||
Jumbo CD | 63,709 | 63,705 | 62,935 | 62,541 | 62,218 | ||||||||||||||
Total deposits | $ | 1,440,652 | $ | 1,371,014 | $ | 1,345,663 | $ | 1,313,245 | $ | 1,205,444 | |||||||||
Asset Quality | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Total loans held-for-investment | $ | 1,379,519 | $ | 1,284,838 | $ | 1,224,151 | $ | 1,192,135 | $ | 1,164,611 | |||||||||
30-89 day past due loans | $ | - | $ | - | $ | - | $ | 200 | $ | - | |||||||||
90+ day past due loans | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||
Nonaccrual loans | $ | 1,453 | $ | 1,453 | $ | 1,510 | $ | 1,494 | $ | 1,540 | |||||||||
NPAs / Assets | 0.09 | % | 0.09 | % | 0.10 | % | 0.10 | % | 0.11 | % | |||||||||
NPLs / Total loans held-for-investment & OREO | 0.11 | % | 0.11 | % | 0.12 | % | 0.12 | % | 0.13 | % | |||||||||
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 | 1.29 | % | 1.33 | % | 1.39 | % | 1.35 | % | 1.35 | % | |||||||||
Allowance for loan losses to nonaccrual loans | 1223.40 | % | 1178.05 | % | 1124.11 | % | 1080.39 | % | 1020.00 | % |
Source:
2022 GlobeNewswire, Inc., source