PSB’s fourth quarter 2023 operating results reflected the following changes from the third quarter of 2023: (1) lower tax expense related to a change in
“We are seeing the decline in our net interest margin stabilize, non-performing assets remain low and overhead expenses contained at an acceptable level. With the challenging economic and interest rate environment experienced in 2023, we delivered a return of 9.62% on common tangible shareholder equity. Though different challenges may arise during 2024, we are proud of the commitment our team has to deliver strong returns to shareholders. Our organization is filled with strong personnel dedicated to making good decisions and building the best bank for the communities we serve,” stated
- Net interest income was unchanged at
$9.6 million for the quarter endedDecember 31, 2023 as increases in funding costs were offset by increases in asset yields. - The effective tax rate declined to 26.7% for the quarter ended
December 31, 2023 compared to 63.8% the prior quarter and 24.1% one year earlier. The current quarter includes additional impacts from continued adoption of the 2023 changes inWisconsin tax law. The prior quarter reflected recognition of an allowance againstWisconsin deferred tax assets, including those assets related to accumulated other comprehensive income. During calendar 2023, adoption of theWisconsin tax change increased tax expense by$1.9 million . - Tangible book value per common share increased 7.1% to
$23.84 atDecember 31, 2023 compared to$22.25 one quarter earlier. During the fourth quarter endedDecember 31, 2023 , tangible book value was positively influenced by net income, intangible asset amortization and lower accumulated other comprehensive loss. - Return on tangible common equity was 9.64% for the quarter ended
December 31, 2023 compared to 5.17% the prior quarter and 15.23% one year earlier. - Loans decreased
$19.5 million in the fourth quarter endedDecember 31, 2023 , to$1.1 billion . Allowance for credit losses increased to 1.13% of gross loans. - Noninterest income was
$1.1 million for the quarter endedDecember 31, 2023 compared to$1.7 million the prior quarter. The current quarter reflected lower mortgage banking income and a$297,000 loss on the sale of investment securities. - Noninterest expenses decreased
$96,000 in the fourth quarter of 2023, to$7.4 million from$7.5 million the prior quarter. The decrease was primarily related to lower salaries and benefit expenses.
Balance Sheet and Asset Quality Review
Total assets decreased slightly to
Despite 2023 full year loan growth of 12.1%, total loans receivable decreased
The allowance for credit losses increased slightly to 1.13% of gross loans at
Total deposits decreased
The composition of deposits continued to change during the fourth quarter of 2023 as customers continue to seek higher deposit rates. At
FHLB advances increased to
Tangible stockholder equity as a percent of total tangible assets was 7.49% at
Tangible net book value per common share increased
Operations Review
Net interest income remained at
The increase in earning asset yields was primarily due to higher yields on loan originations and renewals during the quarter. Taxable security yields were 2.72% for the quarter ended
Rising deposit costs for savings and demand deposits, money market deposits, time deposits and FHLB advances were responsible for the rise in the Bank’s cost of funds. The overall cost of deposits was 1.91% for the quarter ended
Total noninterest income decreased for the fourth quarter of 2023 to
Noninterest expenses decreased to
Taxes decreased
About
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations, estimates and projections about PSB’s business based, in part, on assumptions made by management and include, without limitation, statements with respect to the potential growth of PSB, its future profits, expected stock repurchase levels, future dividend rates, future interest rates, and the adequacy of its capital position. Forward-looking statements can be affected by known and unknown risks, uncertainties, and other factors, including, but not limited to, strength of the economy, the effects of government policies, including interest rate policies, risks associated with the execution of PSB’s vision and growth strategy, including with respect to current and future M&A activity, and risks associated with global economic instability. The forward-looking statements in this press release speak only as of the date on which they are made and PSB does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.
Investor Relations Contact
888.929.9902
InvestorRelations@bankpeoples.com
Consolidated Balance Sheets | |||||||||||||||
(dollars in thousands, except per share data) | 2023 | 2023 | 2023 | 2023 | 2022 | ||||||||||
Assets | |||||||||||||||
Cash and due from banks | $ | 20,887 | $ | 12,881 | $ | 27,409 | $ | 13,336 | $ | 28,561 | |||||
Interest-bearing deposits | 1,431 | 668 | 892 | 538 | 758 | ||||||||||
Federal funds sold | 5,462 | 7,764 | 16,138 | 25,766 | 90 | ||||||||||
Cash and cash equivalents | 27,780 | 21,313 | 44,439 | 39,640 | 29,409 | ||||||||||
Securities available for sale (at fair value) | 164,024 | 160,883 | 167,382 | 190,738 | 192,197 | ||||||||||
Securities held to maturity (fair values of | |||||||||||||||
87,081 | 86,908 | 87,335 | 87,889 | 87,816 | |||||||||||
Equity securities | 1,474 | 2,273 | 2,178 | 2,070 | 2,032 | ||||||||||
Loans held for sale | 230 | 971 | 151 | - | - | ||||||||||
Loans receivable, net (allowance for credit losses | |||||||||||||||
1,078,475 | 1,098,019 | 1,048,322 | 973,270 | 961,865 | |||||||||||
Accrued interest receivable | 5,136 | 4,716 | 4,274 | 4,062 | 4,006 | ||||||||||
Foreclosed assets | - | - | - | - | 160 | ||||||||||
Premises and equipment, net | 13,098 | 13,242 | 13,256 | 13,406 | 13,164 | ||||||||||
Mortgage servicing rights, net | 1,664 | 1,684 | 1,666 | 1,682 | 1,610 | ||||||||||
6,373 | 6,373 | 6,359 | 4,620 | 2,516 | |||||||||||
Cash surrender value of bank-owned life insurance | 24,085 | 23,931 | 23,776 | 25,078 | 24,922 | ||||||||||
Core deposit intangible | 273 | 297 | 321 | 348 | 382 | ||||||||||
2,541 | 2,541 | 2,541 | 2,541 | 2,541 | |||||||||||
Other assets | 11,866 | 14,094 | 14,933 | 14,444 | 15,069 | ||||||||||
TOTAL ASSETS | $ | 1,424,100 | $ | 1,437,245 | $ | 1,416,933 | $ | 1,359,788 | $ | 1,337,689 | |||||
Liabilities | |||||||||||||||
Non-interest-bearing deposits | $ | 266,829 | $ | 288,765 | $ | 282,153 | $ | 267,836 | $ | 292,338 | |||||
Interest-bearing deposits | 874,973 | 883,474 | 860,981 | 839,757 | 856,417 | ||||||||||
Total deposits | 1,141,802 | 1,172,239 | 1,143,134 | 1,107,593 | 1,148,755 | ||||||||||
134,000 | 128,000 | 133,000 | 113,000 | 43,000 | |||||||||||
Other borrowings | 8,058 | 5,660 | 5,730 | 5,033 | 12,985 | ||||||||||
Senior subordinated notes | 4,774 | 4,772 | 4,771 | 4,769 | 5,549 | ||||||||||
Junior subordinated debentures | 12,921 | 12,896 | 12,870 | 12,844 | 12,819 | ||||||||||
Allowance for credit losses on unfunded commitments | 577 | 512 | 712 | 762 | - | ||||||||||
Accrued expenses and other liabilities | 12,681 | 10,258 | 11,783 | 10,576 | 12,639 | ||||||||||
Total liabilities | 1,314,813 | 1,334,337 | 1,312,000 | 1,254,577 | 1,235,747 | ||||||||||
Stockholders' equity | |||||||||||||||
Preferred stock - no par value: | |||||||||||||||
Authorized - 30,000 shares; no shares issued or outstanding | |||||||||||||||
Outstanding - 7,200, 7,200, 7,200, 7,200, and 7,200 shares, respectively | 7,200 | 7,200 | 7,200 | 7,200 | 7,200 | ||||||||||
Common stock - no par value with a stated value of | |||||||||||||||
Authorized - 18,000,000 shares; Issued - 5,490,798 shares | |||||||||||||||
Outstanding - 4,164,735, 4,174,197, 4,190,252, 4,241,501 and | |||||||||||||||
4,297,279 shares, respectively | 1,830 | 1,830 | 1,830 | 1,830 | 1,830 | ||||||||||
Additional paid-in capital | 8,460 | 8,421 | 8,382 | 8,311 | 8,300 | ||||||||||
Retained earnings | 132,666 | 131,624 | 130,396 | 128,968 | 126,003 | ||||||||||
Accumulated other comprehensive loss, net of tax | (20,689 | ) | (26,190 | ) | (23,240 | ) | (22,515 | ) | (24,220 | ) | |||||
1,193,519 shares, respectively | (20,180 | ) | (19,977 | ) | (19,635 | ) | (18,583 | ) | (17,171 | ) | |||||
Total stockholders' equity | 109,287 | 102,908 | 104,933 | 105,211 | 101,942 | ||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,424,100 | $ | 1,437,245 | $ | 1,416,933 | $ | 1,359,788 | $ | 1,337,689 | |||||
Consolidated Statements of Income | ||||||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||||||
(dollars in thousands, | December | |||||||||||||||||||
except per share data - unaudited) | 2023 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||
Interest and dividend income: | ||||||||||||||||||||
Loans, including fees | $ | 14,888 | $ | 14,263 | $ | 12,709 | $ | 11,773 | $ | 11,251 | $ | 53,633 | $ | 39,825 | ||||||
Securities: | ||||||||||||||||||||
Taxable | 1,147 | 1,114 | 1,327 | 1,331 | 1,218 | 4,919 | 3,817 | |||||||||||||
Tax-exempt | 532 | 533 | 535 | 537 | 539 | 2,137 | 2,149 | |||||||||||||
Other interest and dividends | 320 | 238 | 145 | 148 | 141 | 851 | 398 | |||||||||||||
Total interest and dividend income | 16,887 | 16,148 | 14,716 | 13,789 | 13,149 | 61,540 | 46,189 | |||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits | 5,526 | 4,817 | 3,661 | 2,989 | 2,060 | 16,993 | 4,439 | |||||||||||||
FHLB advances | 1,349 | 1,321 | 1,200 | 547 | 167 | 4,417 | 779 | |||||||||||||
Other borrowings | 54 | 51 | 48 | 62 | 38 | 215 | 58 | |||||||||||||
Senior subordinated notes | 59 | 59 | 58 | 62 | 55 | 238 | 139 | |||||||||||||
Junior subordinated debentures | 254 | 255 | 242 | 234 | 224 | 985 | 771 | |||||||||||||
Total interest expense | 7,242 | 6,503 | 5,209 | 3,894 | 2,544 | 22,848 | 6,186 | |||||||||||||
Net interest income | 9,645 | 9,645 | 9,507 | 9,895 | 10,605 | 38,692 | 40,003 | |||||||||||||
Provision for credit losses | 100 | 150 | 100 | 100 | - | 450 | - | |||||||||||||
Net interest income after provision for credit losses | 9,545 | 9,495 | 9,407 | 9,795 | 10,605 | 38,242 | 40,003 | |||||||||||||
Noninterest income: | ||||||||||||||||||||
Service fees | 360 | 349 | 378 | 361 | 381 | 1,448 | 1,570 | |||||||||||||
Mortgage banking income | 247 | 345 | 311 | 325 | 235 | 1,228 | 1,215 | |||||||||||||
Investment and insurance sales commissions | 100 | 158 | 287 | 365 | 498 | 910 | 1,715 | |||||||||||||
Net loss on sale of securities | (297 | ) | - | (279 | ) | - | - | (576 | ) | - | ||||||||||
Increase in cash surrender value of life insurance | 154 | 155 | 149 | 157 | 157 | 615 | 616 | |||||||||||||
Life insurance death benefit | - | - | 533 | - | - | 533 | - | |||||||||||||
Other noninterest income | 540 | 675 | 605 | 742 | 553 | 2,562 | 2,328 | |||||||||||||
Total noninterest income | 1,104 | 1,682 | 1,984 | 1,950 | 1,824 | 6,720 | 7,444 | |||||||||||||
Noninterest expense: | ||||||||||||||||||||
Salaries and employee benefits | 4,244 | 4,514 | 4,884 | 5,006 | 4,700 | 18,648 | 17,940 | |||||||||||||
Occupancy and facilities | 675 | 689 | 698 | 699 | 641 | 2,761 | 2,622 | |||||||||||||
Loss (gain) on foreclosed assets | 1 | - | 4 | (50 | ) | 2 | (45 | ) | - | |||||||||||
Data processing and other office operations | 1,001 | 953 | 951 | 880 | 910 | 3,785 | 3,589 | |||||||||||||
Advertising and promotion | 244 | 161 | 166 | 162 | 180 | 733 | 690 | |||||||||||||
Core deposit intangible amortization | 24 | 24 | 27 | 34 | 34 | 109 | 153 | |||||||||||||
Other noninterest expenses | 1,169 | 1,113 | 1,202 | 1,073 | 1,219 | 4,557 | 4,522 | |||||||||||||
Total noninterest expense | 7,358 | 7,454 | 7,932 | 7,804 | 7,686 | 30,548 | 29,516 | |||||||||||||
Income before provision for income taxes | 3,291 | 3,723 | 3,459 | 3,941 | 4,743 | 14,414 | 17,931 | |||||||||||||
Provision for income taxes | 878 | 2,374 | 652 | 941 | 1,143 | 4,845 | 4,294 | |||||||||||||
Net income | $ | 2,413 | $ | 1,349 | $ | 2,807 | $ | 3,000 | $ | 3,600 | $ | 9,569 | $ | 13,637 | ||||||
Preferred stock dividends declared | $ | 122 | $ | 122 | $ | 122 | $ | 122 | $ | 81 | $ | 486 | $ | 81 | ||||||
Net income available to common shareholders | $ | 2,291 | $ | 1,227 | $ | 2,685 | $ | 2,878 | $ | 3,519 | $ | 9,083 | $ | 13,556 | ||||||
Basic earnings per common share | $ | 0.55 | $ | 0.29 | $ | 0.64 | $ | 0.67 | $ | 0.80 | $ | 2.16 | $ | 3.07 | ||||||
Diluted earnings per common share | $ | 0.55 | $ | 0.29 | $ | 0.64 | $ | 0.67 | $ | 0.80 | $ | 2.16 | $ | 3.07 | ||||||
Quarterly Financial Summary | ||||||||||||||||
(dollars in thousands, except per share data) | Quarter ended | |||||||||||||||
Earnings and dividends: | 2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||
Interest income | $ | 16,887 | $ | 16,148 | $ | 14,716 | $ | 13,789 | $ | 13,149 | ||||||
Interest expense | $ | 7,242 | $ | 6,503 | $ | 5,209 | $ | 3,894 | $ | 2,544 | ||||||
Net interest income | $ | 9,645 | $ | 9,645 | $ | 9,507 | $ | 9,895 | $ | 10,605 | ||||||
Provision for credit losses | $ | 100 | $ | 150 | $ | 100 | $ | 100 | $ | - | ||||||
Other noninterest income | $ | 1,104 | $ | 1,682 | $ | 1,984 | $ | 1,950 | $ | 1,824 | ||||||
Other noninterest expense | $ | 7,358 | $ | 7,454 | $ | 7,932 | $ | 7,804 | $ | 7,686 | ||||||
Net income available to common shareholders | $ | 2,291 | $ | 1,227 | $ | 2,685 | $ | 2,878 | $ | 3,519 | ||||||
Basic earnings per common share (3) | $ | 0.55 | $ | 0.29 | $ | 0.64 | $ | 0.67 | $ | 0.80 | ||||||
Diluted earnings per common share (3) | $ | 0.55 | $ | 0.29 | $ | 0.64 | $ | 0.67 | $ | 0.80 | ||||||
Dividends declared per common share (3) | $ | 0.30 | $ | - | $ | 0.30 | $ | - | $ | 0.25 | ||||||
Tangible net book value per common share (4) | $ | 23.84 | $ | 22.25 | $ | 22.64 | $ | 22.43 | $ | 21.37 | ||||||
Semi-annual dividend payout ratio | 38.14 | % | n/a | 27.38 | % | n/a | 15.27 | % | ||||||||
Average common shares outstanding | 4,168,924 | 4,186,940 | 4,218,226 | 4,275,160 | 4,377,330 | |||||||||||
Balance sheet - average balances: | ||||||||||||||||
Loans receivable, net of allowances for credit loss | $ | 1,081,851 | $ | 1,076,158 | $ | 1,000,349 | $ | 964,029 | $ | 945,551 | ||||||
Assets | $ | 1,424,240 | $ | 1,425,522 | $ | 1,367,363 | $ | 1,336,511 | $ | 1,321,776 | ||||||
Deposits | $ | 1,148,399 | $ | 1,149,624 | $ | 1,098,039 | $ | 1,124,091 | $ | 1,146,066 | ||||||
Stockholders' equity | $ | 105,060 | $ | 105,758 | $ | 106,762 | $ | 103,406 | $ | 100,037 | ||||||
Performance ratios: | ||||||||||||||||
Return on average assets (1) | 0.67 | % | 0.38 | % | 0.82 | % | 0.91 | % | 1.08 | % | ||||||
Return on average common stockholders' equity (1) | 9.29 | % | 4.94 | % | 10.82 | % | 12.13 | % | 14.66 | % | ||||||
Return on average tangible common | ||||||||||||||||
stockholders' equity (1)(4) | 9.64 | % | 5.17 | % | 11.23 | % | 12.63 | % | 15.23 | % | ||||||
Net loan charge-offs to average loans (1) | 0.00 | % | 0.00 | % | -0.07 | % | -0.02 | % | 0.03 | % | ||||||
Nonperforming loans to gross loans | 0.54 | % | 0.55 | % | 0.60 | % | 0.62 | % | 0.64 | % | ||||||
Nonperforming assets to total assets | 0.42 | % | 0.42 | % | 0.45 | % | 0.45 | % | 0.48 | % | ||||||
Allowance for credit losses to gross loans | 1.13 | % | 1.10 | % | 1.12 | % | 1.18 | % | 1.26 | % | ||||||
Nonperforming assets to tangible equity | ||||||||||||||||
plus the allowance for credit losses (4) | 5.40 | % | 5.90 | % | 6.00 | % | 5.80 | % | 6.22 | % | ||||||
Net interest rate margin (1)(2) | 2.88 | % | 2.88 | % | 2.98 | % | 3.21 | % | 3.41 | % | ||||||
Net interest rate spread (1)(2) | 2.20 | % | 2.27 | % | 2.46 | % | 2.77 | % | 3.10 | % | ||||||
Service fee revenue as a percent of | ||||||||||||||||
average demand deposits (1) | 0.52 | % | 0.50 | % | 0.58 | % | 0.52 | % | 0.50 | % | ||||||
Noninterest income as a percent | ||||||||||||||||
of gross revenue | 6.14 | % | 9.43 | % | 11.88 | % | 12.39 | % | 12.18 | % | ||||||
Efficiency ratio (2) | 67.04 | % | 64.58 | % | 68.09 | % | 65.02 | % | 61.06 | % | ||||||
Noninterest expenses to average assets (1) | 2.05 | % | 2.07 | % | 2.33 | % | 2.37 | % | 2.31 | % | ||||||
Average stockholders' equity less accumulated | ||||||||||||||||
other comprehensive income (loss) to | ||||||||||||||||
average assets | 8.88 | % | 9.00 | % | 9.33 | % | 9.32 | % | 9.23 | % | ||||||
Tangible equity to tangible assets (4) | 7.49 | % | 6.98 | % | 7.22 | % | 7.54 | % | 7.42 | % | ||||||
Stock price information: | ||||||||||||||||
High | $ | 22.30 | $ | 22.50 | $ | 21.38 | $ | 25.75 | $ | 22.74 | ||||||
Low | $ | 20.10 | $ | 20.35 | $ | 19.75 | $ | 20.00 | $ | 21.50 | ||||||
Last trade value at quarter-end | $ | 22.11 | $ | 21.15 | $ | 20.35 | $ | 21.15 | $ | 21.90 | ||||||
(1) Annualized | ||||||||||||||||
(2) The yield on federally tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%. | ||||||||||||||||
(3) Due to rounding, cumulative quarterly per share performance may not equal annual per share totals. | ||||||||||||||||
(4) Tangible stockholders' equity excludes goodwill and core deposit intangibles. | ||||||||||||||||
Consolidated Statements of Comprehensive Income | ||||||||||||||||||
Quarter Ended | ||||||||||||||||||
(dollars in thousands - unaudited) | 2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||
Net income | $ | 2,413 | $ | 1,349 | $ | 2,807 | $ | 3,000 | $ | 3,600 | ||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||
Unrealized gain (loss) on securities available | ||||||||||||||||||
for sale | 5,323 | (3,085 | ) | (1,168 | ) | 1,601 | (116 | ) | ||||||||||
Reclassification adjustment for security | ||||||||||||||||||
loss included in net income | 235 | - | 202 | - | - | |||||||||||||
Amortization of unrealized loss included in net | ||||||||||||||||||
income on securities available for sale | ||||||||||||||||||
transferred to securities held to maturity | 91 | 91 | 107 | 129 | 93 | |||||||||||||
Unrealized gain (loss) on interest rate swap | (109 | ) | 79 | 161 | (1 | ) | 11 | |||||||||||
Reclassification adjustment of interest rate | ||||||||||||||||||
swap settlements included in earnings | (39 | ) | (35 | ) | (27 | ) | (24 | ) | (8 | ) | ||||||||
Other comprehensive income (loss) | 5,501 | (2,950 | ) | (725 | ) | 1,705 | (20 | ) | ||||||||||
Comprehensive income (loss) | $ | 7,914 | $ | (1,601 | ) | $ | 2,082 | $ | 4,705 | $ | 3,580 | |||||||
Nonperforming Assets as of: | |||||||||||||||
(dollars in thousands) | 2023 | 2023 | 2023 | 2023 | 2022 | ||||||||||
Nonaccrual loans (excluding restructured loans) | $ | 5,596 | $ | 5,807 | $ | 6,000 | $ | 5,773 | $ | 5,879 | |||||
Nonaccrual restructured loans | 34 | 42 | 50 | 57 | 62 | ||||||||||
Restructured loans not on nonaccrual | 310 | 256 | 261 | 265 | 270 | ||||||||||
Accruing loans past due 90 days or more | - | - | - | - | - | ||||||||||
Total nonperforming loans | 5,940 | 6,105 | 6,311 | 6,095 | 6,211 | ||||||||||
Other real estate owned | - | - | - | - | 160 | ||||||||||
Total nonperforming assets | $ | 5,940 | $ | 6,105 | $ | 6,311 | $ | 6,095 | $ | 6,371 | |||||
Nonperforming loans as a % of gross loans receivable | 0.54 | % | 0.55 | % | 0.60 | % | 0.62 | % | 0.64 | % | |||||
Total nonperforming assets as a % of total assets | 0.42 | % | 0.42 | % | 0.45 | % | 0.45 | % | 0.48 | % | |||||
Allowance for credit losses as a % of nonperforming loans | 207.10 | % | 200.93 | % | 188.91 | % | 190.21 | % | 197.92 | % | |||||
Nonperforming Assets >= | |||||||
At | |||||||
(dollars in thousands) | |||||||
Gross | Specific | ||||||
Collateral Description | Asset Type | Principal | Reserves | ||||
Real estate - | Nonaccrual | $ | 2,676 | $ | 935 | ||
Real estate - Independent | Nonaccrual | 654 | 21 | ||||
Total listed nonperforming assets | $ | 3,330 | $ | 956 | |||
Total bank wide nonperforming assets | $ | 5,940 | $ | 1,340 | |||
Listed assets as a % of total nonperforming assets | 56 | % | 71 | % | |||
Loan Composition by Collateral Type | |||||||||||||||
Quarter-ended (dollars in thousands) | 2023 | 2023 | 2023 | 2023 | 2022 | ||||||||||
Commercial: | |||||||||||||||
Commercial and instrustrial | $ | 117,207 | $ | 138,299 | $ | 145,434 | $ | 133,427 | $ | 129,640 | |||||
Agriculture | 12,304 | 12,464 | 13,326 | 12,434 | 12,979 | ||||||||||
Municipal | 31,530 | 27,186 | 25,222 | 6,430 | 9,915 | ||||||||||
Total Commercial | 161,041 | 177,949 | 183,982 | 152,291 | 152,534 | ||||||||||
Commercial real estate | 536,209 | 539,488 | 490,657 | 469,395 | 471,225 | ||||||||||
Construction and development | 81,701 | 86,456 | 99,769 | 103,108 | 100,775 | ||||||||||
617,910 | 625,944 | 590,426 | 572,503 | 572,000 | |||||||||||
Residential real estate: | |||||||||||||||
Residential | 274,453 | 274,632 | 274,692 | 261,415 | 253,740 | ||||||||||
Construction and development | 33,960 | 33,141 | 41,485 | 26,480 | 24,367 | ||||||||||
HELOC | 29,766 | 29,044 | 26,220 | 25,001 | 24,173 | ||||||||||
338,179 | 336,817 | 342,397 | 312,896 | 302,280 | |||||||||||
Consumer installment | 4,357 | 4,350 | 4,142 | 4,079 | 4,734 | ||||||||||
Subtotals - Gross loans | 1,121,487 | 1,145,060 | 1,120,947 | 1,041,769 | 1,031,548 | ||||||||||
Loans in process of disbursement | (31,359 | ) | (35,404 | ) | (61,308 | ) | (57,448 | ) | (57,963 | ) | |||||
Subtotals - Disbursed loans | 1,090,128 | 1,109,656 | 1,059,639 | 984,321 | 973,585 | ||||||||||
Net deferred loan costs | 649 | 630 | 605 | 542 | 573 | ||||||||||
Allowance for credit losses | (12,302 | ) | (12,267 | ) | (11,922 | ) | (11,593 | ) | (12,293 | ) | |||||
Total loans receivable | $ | 1,078,475 | $ | 1,098,019 | $ | 1,048,322 | $ | 973,270 | $ | 961,865 | |||||
Selected Commercial Real Estate Loans by Purpose | ||||||||||||||||||||||||
(dollars in thousands) | 2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||||||||
Total Exposure | % of Portfolio (1) | Total Exposure | % of Portfolio (1) | Total Exposure | % of Portfolio (1) | Total Exposure | % of Portfolio (1) | Total Exposure | % of Portfolio (1) | |||||||||||||||
Multi Family | $ | 132,386 | 13.2 | % | $ | 133,466 | 13.3 | % | $ | 119,573 | 12.4 | % | $ | 121,559 | 13.0 | % | $ | 120,232 | 13.1 | % | ||||
Industrial and Warehousing | 83,817 | 8.3 | 88,906 | 8.9 | 84,049 | 8.7 | 78,934 | 8.5 | 76,536 | 8.3 | ||||||||||||||
Retail | 35,419 | 3.5 | 35,281 | 3.5 | 34,004 | 3.5 | 34,427 | 3.7 | 32,587 | 3.5 | ||||||||||||||
Hotels | 36,100 | 3.6 | 31,819 | 3.2 | 33,329 | 3.5 | 31,069 | 3.3 | 32,940 | 3.6 | ||||||||||||||
Office | 6,701 | 0.7 | 6,746 | 0.7 | 8,395 | 0.9 | 8,544 | 0.9 | 8,652 | 0.9 | ||||||||||||||
(1) Percentage of commercial and commercial real estate portfolio and commitments. | ||||||||||||||||||||||||
Deposit Composition | ||||||||||||||||||||
Insured and Collateralized Deposits | ||||||||||||||||||||
(dollars in thousands) | 2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||||
$ | % | $ | % | $ | % | $ | % | $ | % | |||||||||||
Non-interest bearing demand | $ | 197,571 | 17.3 | % | $ | 209,133 | 17.8 | % | $ | 201,351 | 17.6 | % | $ | 205,350 | 18.6 | % | $ | 203,115 | 17.7 | % |
Interest-bearing demand and savings | 317,984 | 27.8 | % | 307,620 | 26.3 | % | 310,006 | 27.1 | % | 329,364 | 29.7 | % | 345,854 | 30.1 | % | |||||
Money market deposits | 142,887 | 12.5 | % | 135,910 | 11.6 | % | 126,851 | 11.1 | % | 128,576 | 11.6 | % | 131,400 | 11.4 | % | |||||
Retail and local time deposits <= | 149,145 | 13.1 | % | 144,733 | 12.3 | % | 140,572 | 12.3 | % | 136,090 | 12.3 | % | 130,205 | 11.3 | % | |||||
Total core deposits | 807,587 | 70.7 | % | 797,396 | 68.0 | % | 778,780 | 68.1 | % | 799,380 | 72.2 | % | 810,574 | 70.5 | % | |||||
Retail and local time deposits > | 23,000 | 2.0 | % | 22,750 | 1.9 | % | 20,250 | 1.8 | % | 17,000 | 1.5 | % | 14,500 | 1.3 | % | |||||
Broker & national time deposits <= | 3,470 | 0.3 | % | 3,222 | 0.3 | % | 3,965 | 0.3 | % | 5,953 | 0.5 | % | 6,451 | 0.6 | % | |||||
Broker & national time deposits > | 70,020 | 6.1 | % | 88,614 | 7.6 | % | 93,956 | 8.2 | % | 74,485 | 6.8 | % | 82,439 | 7.2 | % | |||||
Totals | $ | 904,077 | 79.1 | % | $ | 911,982 | 77.8 | % | $ | 896,951 | 78.4 | % | $ | 896,818 | 81.0 | % | $ | 913,964 | 79.6 | % |
Deposit Composition | ||||||||||||||||||||
Uninsured Deposits | ||||||||||||||||||||
(dollars in thousands) | 2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||||
$ | % | $ | % | $ | % | $ | % | $ | % | |||||||||||
Non-interest bearing demand | $ | 69,258 | 6.1 | % | $ | 79,632 | 6.8 | % | $ | 80,802 | 7.1 | % | $ | 62,486 | 5.6 | % | $ | 89,223 | 7.7 | % |
Interest-bearing demand and savings | 20,316 | 1.8 | % | 22,847 | 1.9 | % | 22,604 | 2.0 | % | 24,854 | 2.2 | % | 49,917 | 4.3 | % | |||||
Money market deposits | 124,518 | 10.9 | % | 133,653 | 11.4 | % | 127,871 | 11.2 | % | 109,894 | 10.0 | % | 84,673 | 7.4 | % | |||||
Retail and local time deposits <= | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | |||||
Total core deposits | 214,092 | 18.8 | % | 236,132 | 20.1 | % | 231,277 | 20.3 | % | 197,234 | 17.8 | % | 223,813 | 19.4 | % | |||||
Retail and local time deposits > | 23,633 | 2.1 | % | 24,120 | 2.1 | % | 14,906 | 1.3 | % | 13,541 | 1.2 | % | 10,978 | 1.0 | % | |||||
Broker & national time deposits <= | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | |||||
Broker & national time deposits > | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | |||||
Totals | $ | 237,725 | 20.9 | % | $ | 260,252 | 22.2 | % | $ | 246,183 | 21.6 | % | $ | 210,775 | 19.0 | % | $ | 234,791 | 20.4 | % |
Deposit Composition | ||||||||||||||||||||
Total Deposits | ||||||||||||||||||||
(dollars in thousands) | 2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||||
$ | % | $ | % | $ | % | $ | % | $ | % | |||||||||||
Non-interest bearing demand | $ | 266,829 | 23.4 | % | $ | 288,765 | 24.7 | % | $ | 282,153 | 24.7 | % | $ | 267,836 | 24.2 | % | $ | 292,338 | 25.4 | % |
Interest-bearing demand and savings | 338,300 | 29.6 | % | 330,467 | 28.2 | % | 332,610 | 29.1 | % | 354,218 | 32.0 | % | 395,771 | 34.5 | % | |||||
Money market deposits | 267,405 | 23.4 | % | 269,563 | 22.8 | % | 254,722 | 22.3 | % | 238,470 | 21.5 | % | 216,073 | 18.8 | % | |||||
Retail and local time deposits <= | 149,145 | 13.1 | % | 144,738 | 12.4 | % | 140,572 | 12.3 | % | 136,090 | 12.3 | % | 130,205 | 11.3 | % | |||||
Total core deposits | 1,021,679 | 89.5 | % | 1,033,533 | 88.1 | % | 1,010,057 | 88.4 | % | 996,614 | 90.0 | % | 1,034,387 | 90.0 | % | |||||
Retail and local time deposits > | 46,633 | 4.1 | % | 46,870 | 4.0 | % | 35,156 | 3.1 | % | 30,541 | 2.8 | % | 25,478 | 2.2 | % | |||||
Broker & national time deposits <= | 3,470 | 0.3 | % | 3,222 | 0.3 | % | 3,965 | 0.3 | % | 5,953 | 0.5 | % | 6,451 | 0.6 | % | |||||
Broker & national time deposits > | 70,020 | 6.1 | % | 88,614 | 7.6 | % | 93,956 | 8.2 | % | 74,485 | 6.7 | % | 82,439 | 7.2 | % | |||||
Totals | $ | 1,141,802 | 100.0 | % | $ | 1,172,239 | 100.0 | % | $ | 1,143,134 | 100.0 | % | $ | 1,107,593 | 100.0 | % | $ | 1,148,755 | 100.0 | % |
Average Balances ( | ||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
Quarter ended | Quarter ended | Quarter ended | ||||||||||||||||||||||
Average | Yield / | Average | Yield / | Average | Yield / | |||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||
Assets | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans (1)(2) | $ | 1,094,152 | $ | 14,974 | 5.43 | % | $ | 1,088,137 | $ | 14,337 | 5.23 | % | $ | 957,926 | $ | 11,266 | 4.67 | % | ||||||
Taxable securities | 167,366 | 1,147 | 2.72 | % | 173,287 | 1,114 | 2.55 | % | 197,070 | 1,218 | 2.45 | % | ||||||||||||
Tax-exempt securities (2) | 80,922 | 673 | 3.30 | % | 81,327 | 675 | 3.29 | % | 82,074 | 682 | 3.30 | % | ||||||||||||
FHLB stock | 6,373 | 158 | 9.84 | % | 6,368 | 127 | 7.91 | % | 2,516 | 32 | 5.05 | % | ||||||||||||
Other | 11,846 | 162 | 5.43 | % | 8,195 | 111 | 5.37 | % | 14,131 | 109 | 3.06 | % | ||||||||||||
Total (2) | 1,360,659 | 17,114 | 4.99 | % | 1,357,314 | 16,364 | 4.78 | % | 1,253,717 | 13,307 | 4.21 | % | ||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||
Cash and due from banks | 16,243 | 19,299 | 18,941 | |||||||||||||||||||||
Premises and equipment, | ||||||||||||||||||||||||
net | 13,243 | 13,266 | 13,123 | |||||||||||||||||||||
Cash surrender value ins | 23,990 | 23,840 | 24,822 | |||||||||||||||||||||
Other assets | 22,406 | 23,782 | 23,548 | |||||||||||||||||||||
Allowance for credit | ||||||||||||||||||||||||
losses | (12,301 | ) | (11,979 | ) | (12,375 | ) | ||||||||||||||||||
Total | $ | 1,424,240 | $ | 1,425,522 | $ | 1,321,776 | ||||||||||||||||||
Liabilities & stockholders' equity | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Savings and demand | ||||||||||||||||||||||||
deposits | $ | 327,036 | $ | 1,296 | 1.57 | % | $ | 335,214 | $ | 1,198 | 1.42 | % | $ | 376,075 | $ | 690 | 0.73 | % | ||||||
Money market deposits | 272,087 | 1,820 | 2.65 | % | 255,823 | 1,489 | 2.31 | % | 224,701 | 601 | 1.06 | % | ||||||||||||
Time deposits | 273,332 | 2,410 | 3.50 | % | 279,971 | 2,130 | 3.02 | % | 241,290 | 769 | 1.26 | % | ||||||||||||
FHLB borrowings | 133,560 | 1,349 | 4.01 | % | 134,386 | 1,321 | 3.90 | % | 35,522 | 167 | 1.87 | % | ||||||||||||
Other borrowings | 6,999 | 54 | 3.06 | % | 5,681 | 51 | 3.56 | % | 11,307 | 38 | 1.33 | % | ||||||||||||
Senior sub. notes | 4,773 | 59 | 4.90 | % | 4,772 | 59 | 4.91 | % | 4,522 | 55 | 4.83 | % | ||||||||||||
Junior sub. debentures | 12,909 | 254 | 7.81 | % | 12,883 | 255 | 7.85 | % | 12,806 | 224 | 6.94 | % | ||||||||||||
Total | 1,030,696 | 7,242 | 2.79 | % | 1,028,730 | 6,503 | 2.51 | % | 906,223 | 2,544 | 1.11 | % | ||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | 275,944 | 278,616 | 304,000 | |||||||||||||||||||||
Other liabilities | 12,540 | 12,431 | 11,516 | |||||||||||||||||||||
Stockholders' equity | 105,060 | 105,745 | 100,037 | |||||||||||||||||||||
Total | $ | 1,424,240 | $ | 1,425,522 | $ | 1,321,776 | ||||||||||||||||||
Net interest income | $ | 9,872 | $ | 9,861 | $ | 10,763 | ||||||||||||||||||
Rate spread | 2.20 | % | 2.27 | % | 3.10 | % | ||||||||||||||||||
Net yield on interest-earning assets | 2.88 | % | 2.88 | % | 3.41 | % | ||||||||||||||||||
(1) Nonaccrual loans are included in the daily average loan balances outstanding. | ||||||||||||||||||||||||
(2) The yield on federally tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%. | ||||||||||||||||||||||||
Average Balances ( | |||||||||||||||
(dollars in thousands) | |||||||||||||||
Year ended | Year ended | ||||||||||||||
Average | Yield/ | Average | Yield/ | ||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||
Assets | |||||||||||||||
Interest-earning assets: | |||||||||||||||
Loans (1)(2) | $ | 1,043,144 | $ | 53,824 | 5.16 | % | $ | 927,720 | $ | 39,871 | 4.30 | % | |||
Taxable securities | 183,984 | 4,919 | 2.67 | % | 204,630 | 3,817 | 1.87 | % | |||||||
Tax-exempt securities (2) | 81,481 | 2,705 | 3.32 | % | 82,977 | 2,720 | 3.28 | % | |||||||
FHLB stock | 5,304 | 386 | 7.28 | % | 2,597 | 114 | 4.39 | % | |||||||
Other | 9,073 | 465 | 5.13 | % | 20,848 | 284 | 1.36 | % | |||||||
Total (2) | 1,322,986 | 62,299 | 4.71 | % | 1,238,772 | 46,806 | 3.78 | % | |||||||
Non-interest-earning assets: | |||||||||||||||
Cash and due from banks | 17,110 | 18,772 | |||||||||||||
Premises and equipment, | |||||||||||||||
net | 13,294 | 12,988 | |||||||||||||
Cash surrender value ins | 24,331 | 24,591 | |||||||||||||
Other assets | 23,136 | 20,896 | |||||||||||||
Allowance for credit | |||||||||||||||
losses | (12,079 | ) | (12,347 | ) | |||||||||||
Total | $ | 1,388,778 | $ | 1,303,672 | |||||||||||
Liabilities & stockholders' equity | |||||||||||||||
Interest-bearing liabilities: | |||||||||||||||
Savings and demand | |||||||||||||||
deposits | $ | 344,906 | $ | 4,582 | 1.33 | % | $ | 381,849 | $ | 1,251 | 0.33 | % | |||
Money market deposits | 249,079 | 5,328 | 2.14 | % | 223,409 | 1,210 | 0.54 | % | |||||||
Time deposits | 261,595 | 7,083 | 2.71 | % | 227,570 | 1,978 | 0.87 | % | |||||||
FHLB borrowings | 116,282 | 4,417 | 3.80 | % | 49,784 | 779 | 1.56 | % | |||||||
Other borrowings | 7,061 | 215 | 3.04 | % | 7,439 | 58 | 0.78 | % | |||||||
Senior sub. notes | 4,927 | 238 | 4.83 | % | 3,010 | 139 | 4.62 | % | |||||||
Junior sub. debentures | 12,870 | 985 | 7.65 | % | 12,768 | 771 | 6.04 | % | |||||||
Total | 996,720 | 22,848 | 2.29 | % | 905,829 | 6,186 | 0.68 | % | |||||||
Non-interest-bearing liabilities: | |||||||||||||||
Demand deposits | 274,273 | 285,261 | |||||||||||||
Other liabilities | 12,397 | 11,330 | |||||||||||||
Stockholders' equity | 105,388 | 101,252 | |||||||||||||
Total | $ | 1,388,778 | $ | 1,303,672 | |||||||||||
Net interest income | $ | 39,451 | $ | 40,620 | |||||||||||
Rate spread | 2.42 | % | 3.10 | % | |||||||||||
Net yield on interest-earning assets | 2.98 | % | 3.28 | % | |||||||||||
(1) Nonaccrual loans are included in the daily average loan balances outstanding. | |||||||||||||||
(2) The yield on federally tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%. | |||||||||||||||
Source:
2024 GlobeNewswire, Inc., source