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CBB Bancorp, Inc. Reports First Quarter 2022 Financial Results

CBB Bancorp, Inc. ("CBB" or the "Company') (OTCQX: CBBI), the holding company of Commonwealth Business Bank (the "Bank"), announced today net income for first quarter 2022 of $8.4 million, or $0.80 per diluted share, an increase of 4.9% compared to $8.0 million, or $0.77 per diluted share, in the prior quarter and 57.6% compared to $5.3 million, or $0.52 per diluted share, in the same period last year.

Overall Results

Net income for first quarter 2022 was positively impacted by improving credit quality as well as continued strength in SBA loan originations and sales. The return on average assets for first quarter 2022 was 1.91% compared to 1.68% for fourth quarter 2021 and 1.58% for first quarter 2021. The return on average equity for first quarter 2022 was 18.08% compared to 17.54% for fourth quarter 2021 and 13.26% for first quarter 2021. The net interest margin for first quarter 2022 was 3.68% compared to 3.49% for fourth quarter 2021 and 3.90% for first quarter 2021. The efficiency ratio for first quarter 2022 was 50.71% compared to 52.84% for fourth quarter 2021 and 51.78% for first quarter 2021.

James Hong, President and CEO commented, “We are pleased to announce strong earnings for the first quarter of 2022. We reduced our allowance for loan losses during the quarter based on improved credit metrics and better than anticipated results from earlier Covid-19 related provisions. The origination and sale of SBA loans was a major contributor to the quarter’s profits, and is an ongoing focus for the Bank’s management team."

Net Interest Income and Margin:

Net Interest Income

Net interest income for first quarter 2022 was $15.8 million, a decrease of $465 thousand, or 2.9%, from fourth quarter 2021, and an increase of $3.0 million, or 23.2%, from first quarter 2021. The decrease in net interest income compared with the fourth quarter of 2021 was due primarily to the decrease in average loan balances of $22.4 million. The increase in net interest income compared with the first quarter of 2021 was driven by loan growth, as well as the completion of the acquisition of Ohana Pacific Bank(OPB) during 2021.

Net Interest Margin

Our net interest margin for first quarter 2022 was 3.68% compared to 3.49% for fourth quarter 2021 and 3.90% for first quarter 2021. The increase in net interest margin was primarily attributable to having reduced levels of lower yielding assets relative to higher yielding loan receivables. Our cost of funds increased for first quarter 2022 to 0.31% from 0.30% for fourth quarter 2021 and decreased from 0.52% for first quarter 2021. The Net interest margin during the quarter also benefited from an improved mix of earning assets, as we reduced our cash and due from banks balances to fund loan originations.

Provision for Loan Losses:

The Company recorded negative provisions for loan losses of $1.2 million for first quarter 2022 and $800 thousand for the fourth quarter of 2021. The provision for loan losses for first quarter 2021 was $500 thousand. The negative loan loss provision during the first quarter of 2022 was due to continued improvement in asset quality ratios and the absence of significant charge-offs, combined with a reduction of the loans outstanding balance at March 31, 2022. See Table 10 for additional information and trends.

Noninterest Income:

Noninterest income for first quarter 2022 was $5.6 million, compared to $5.3 million for fourth quarter 2021 and $3.7 million for first quarter 2021. The increase in noninterest income in first quarter 2022 was the result of higher gains on sales of loans. Sales of SBA loans were $50.5 million with an average premium percentage received of 11.0% during the first quarter of 2022, compared with $42.2 million with an average premium percentage received of 11.1% in the fourth quarter of 2021 and $30.2 million with an average premium percentage received of 10.9% during the first quarter of 2021.

Noninterest Expense:

Noninterest expense for first quarter 2022 was $10.9 million compared to $11.4 million for fourth quarter 2021 and $8.6 million for first quarter 2021. Salaries and employee benefits increased by $451 thousand to $7.1 million compared to $6.7 million in the prior quarter, due to increased 401k matching and payroll taxes associated with bonus payments . Additionally, lower loan originations resulted in a decrease in the amount of compensation deferred as loan origination costs. Other noninterest expense in first quarter 2022 was lower than in the fourth quarter of 2021 due to the absence of merger-related expenses and a provision for probable loss of $800 thousand on the repurchase of SBA loans sold that was booked in December 2021.

Income Taxes:

The Company’s effective tax rate for first quarter 2022 was 28.4% compared to 27.1% for fourth quarter 2021 and 28.6% for first quarter 2021.

Balance Sheet:

Investment Securities:

Investment securities were $80.1 million at March 31, 2022, a decrease of $4.1 million from December 31, 2021 and $3.3 million from March 31, 2021. The decreases were due to principal paydowns and an absence of portfolio additions in the first quarter 2022, or in the fourth and first quarters 2021.

Loans Receivable:

Loans receivable (including loans held for sale) at March 31, 2022 was $1.4 billion, a decrease of $24.0 million, or 1.7%, from December 31, 2021, and an increase of $185.8 million, or 15.6% from March 31, 2021. The decrease in loans compared to December 31, 2021 was due to higher than normal loan payoffs. The increase in loan balances compared with the first quarter of 2021 was due to the $149.2 million in loan receivable that were acquired in the OPB merger at July 1, 2021 as well as organic growth.

Our weighted average loan-to-value ratio of Commercial Real Estate loans was 67.8.% at March 31, 2022. Excluding SBA loans, our weighted average loan-to-value of CRE loans was 47.8%. For additional information, please go to www.cbb-bank.com under tab “About Us” and select “Investors Relations” to see 1Q 2022 Overview and COVID-19 update presentation.

Paycheck Protection Program (PPP):

PPP loans totaled $22.1 million at March 31, 2022. Net unearned fees as of March 31, 2022 were $765 thousand and are being accreted to income based on the two-year contractual maturity. The SBA approved $13.0 million in PPP loan forgiveness applications processed for our PPP loans in the first quarter 2022.

Allowance for Loan Losses and Asset Quality:

The allowance for loan losses at March 31, 2022 was $13.1 million, or 1.07% of portfolio loans, compared to $14.2 million, or 1.14% of portfolio loans, at December 31, 2021 and compared to $14.9 million, or 1.34% of portfolio loans, at March 31, 2021. Excluding PPP loans of $22.1 million, which are government guaranteed, the allowance for loan losses at March 31, 2022 was 1.09% compared to 1.18% and 1.48%, respectively, at December 31, 2021 and March 31, 2021. The decrease in the allowance as a percentage of the portfolio in the current quarter compared with the prior year is primarily due to loans acquired in the OPB acquisition, which have been marked to market value and do not currently require any loan loss allowance. Non-performing loans as of March 31, 2022 were $723 thousand, compared to $747 thousand at December 31, 2021. Certain loans with payment deferments are considered to be performing loans in accordance with regulatory guidance. Our coverage ratio of allowance for loan losses to nonperforming assets exceeded 1800%. For additional information, please go to www.cbb-bank.com under tab “About Us” and select “Investors Relations” to see 1Q 2022 Overview and COVID-19 update presentation.

SBA Loans Held for Sale:

SBA loans held for sale at March 31, 2022 were $149.7 million, compared to $158.1 million at December 31, 2021 and $76.1million at March 31, 2021. We continue to assess SBA loan sale premiums and plan to sell loans when we believe it is advantageous to do so. See comments under “Noninterest Income”, and Table 7 for additional SBA loan origination and sale data.

Deposits:

Deposits were $1.5 billion at March 31, 2022, down $24.1 million from $1.6 billion at December 31, 2021 and up $342.5 million from $1.2 billion at March 31, 2021. Noninterest-bearing demand deposits (“DDAs”) decreased $43.4 million, or 7.0%, to $576.4 million at March 31, 2022 from December 31, 2021 and increased $167.6. million, or 41.0%, from March 31, 2021. DDAs were 38.4% of total deposits at March 31, 2022 compared to 40.5% at December 31, 2021 and 34.3% at March 31, 2021. NOW and MMDA increased $19.2 million, or 5.9%, to $344.5 million at March 31, 2022 from December 31, 2021 and increased $74.0 million, or 27.3%, from March 31, 2021. Time deposits decreased $4.3 million, or 0.8%, to $521.4 million at March 31, 2022 from December 31, 2021 and increased $55.4 million, or 11.9%, from March 31, 2021. Time deposits at March 31, 2022 were 34.0% of total deposits compared to $525.7 million, or 33.7% of total deposits, at December 31, 2021, and $466.0 million, or 39.1% of total deposits, at March 31, 2021. The primary cause of the decreases in deposit balances during 2022 compared with the fourth quarter of 2021 was a decline in escrow-related deposits from our Specialty Deposit Group. The increase compared with the first quarter of 2021 was due to normal growth combined with the completion of the merger with OPB during the third quarter of 2021.

Borrowings:

Borrowings at March 31, 2022 consisted of $50.0 million of Federal Home Loan Bank of San Francisco (“FHLB-SF”) advances unchanged from December 31, 2021, and decreased $15.0 million compared to $65 million of FHLB-SF advances at March 31, 2021.

Capital:

Stockholders’ equity was $191.1 million at March 31, 2022, representing an increase of $5.8 million, or 3.2%, over stockholders’ equity of $185.2 million at December 31, 2021. Tangible book value per share at March 31, 2022 was $18.31 compared with $17.76 at December 31, 2021, an increase of $0.55 per share, or 3.1%.

All of our regulatory capital ratios continue to exceed the minimum levels required to be considered “Well Capitalized” as defined for bank regulatory purposes and in compliance with the fully phased-in Basel III requirements, which went into effect on January 1, 2021, as shown on Table 11 in this press release. Importantly, our Common Equity Tier 1 risked-based capital at March 31, 2022 was 14.63% at the Company level and 14.62% at the Bank level.

About CBB Bancorp, Inc.:

CBB Bancorp, Inc. is the holding company of Commonwealth Business Bank, a full-service commercial bank which specializes in loans to small-to medium-sized businesses and does business as “CBB Bank.” As of March 31, 2022, the Bank has ten full-service banking offices in Los Angeles and Orange Counties in California, Dallas County in Texas and Honolulu, Hawaii; two SBA regional offices in Los Angeles and Dallas Counties; and five loan production offices in Texas, Georgia, Colorado and Washington. For additional information, please go to www.cbb-bank.com under tab “About Us” and select “Investors Relations” to see 1Q 2022 Overview and COVID-19 update presentation.

FORWARD-LOOKING STATEMENTS:

This news release contains forward-looking statements. These statements typically include words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar terms and phrases, including references to assumptions. You should not place undue reliance on such statements. Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management’s experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company’s control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Factors that could affect our results include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company’s control; increases in competitive pressure among financial institutions or from non-financial institutions may occur; changes in the interest rate environment may reduce interest margins; changes in deposit flows, loan demand or real estate values may adversely affect the business of the Company and the Bank; significant increases in loan losses may occur; the possibility that changes in accounting principles, policies or guidelines may cause the Company’s financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company’s financial condition or results of operations; general economic conditions, either nationally or locally in some or all areas in which the Company conducts business, the effects of the COVID-19 pandemic, and of other widespread outbreaks of disease or pandemics, together with related impacts on general economic conditions, including adverse impacts on our customers’ ability to make timely payments on their loans from us, reduced fee income due to reduced loan origination activity, reductions in or absence of gains on loan sales due to uncertainty in the loan sale market, and increased operating expense due to required changes in how we conduct our business may adversely affect us; conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates; legislation or regulatory changes may adversely affect the Company’s business; technological changes may be more difficult or expensive to implement or accommodate than the Company anticipates; there may be failures or breaches of our information technology security systems or those of our third party service providers; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; or litigation or matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates; we may encounter greater difficulty, delay and expense than we anticipate in integrating the personnel and operations of Ohana Pacific Bank or any other companies we acquire. The Company undertakes no obligation to revise any forward-looking statement contained herein to reflect any future events or circumstances, except to the extent required by law.

Schedules and Financial Data: All tables and data to follow.

STATEMENT OF INCOME AND PERFORMANCE HIGHLIGHT (Unaudited) - Table 1
(Dollars in thousands, except per share amounts)
 
Three Months Ended
March 31, December 31, $ % March 31, $ %

 

2022

 

 

2021

 

Change Change

 

2021

 

Change Change
 
Interest income

$

17,032

 

$

17,553

 

$

(521

)

(3.0

%)

$

14,372

 

$

2,660

 

18.5

%

Interest expense

 

1,209

 

 

1,265

 

 

(56

)

(4.4

%)

 

1,533

 

 

(324

)

(21.1

%)

Net interest income

 

15,823

 

 

16,288

 

 

(465

)

(2.9

%)

 

12,839

 

 

2,984

 

23.2

%

 
Provision for loan losses

 

(1,167

)

 

(800

)

 

(367

)

45.9

%

 

500

 

 

(1,667

)

(333.4

%)

Net interest income after provision for loan losses

 

16,990

 

 

17,088

 

 

(98

)

(0.6

%)

 

12,339

 

 

4,651

 

37.7

%

 
Gain on sale of loans

 

4,668

 

 

4,151

 

 

517

 

12.5

%

 

2,456

 

 

2,212

 

90.1

%

Gain (loss) on sale of OREO

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

-

 

-

 

SBA servicing fee income, net

 

469

 

 

683

 

 

(214

)

(31.3

%)

 

847

 

 

(378

)

(44.6

%)

Reversal of valuation allowance on servicing assets

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

-

 

-

 

Service charges and other income

 

498

 

 

499

 

 

(1

)

(0.2

%)

 

379

 

 

119

 

31.4

%

Noninterest income

 

5,635

 

 

5,333

 

 

302

 

5.7

%

 

3,682

 

 

1,953

 

53.0

%

 
Salaries and employee benefits

 

7,065

 

 

6,614

 

 

451

 

6.8

%

 

4,853

 

 

2,212

 

45.6

%

Occupancy and equipment

 

1,120

 

 

1,028

 

 

92

 

8.9

%

 

979

 

 

141

 

14.4

%

Marketing expense

 

485

 

 

111

 

 

374

 

336.9

%

 

287

 

 

198

 

69.0

%

Professional expense

 

415

 

 

368

 

 

47

 

12.8

%

 

455

 

 

(40

)

(8.8

%)

Merger related expense

 

-

 

 

454

 

 

(454

)

(100.0

%)

 

681

 

 

(681

)

(100.0

%)

Other expenses

 

1,796

 

 

2,850

 

 

(1,054

)

(37.0

%)

 

1,300

 

 

496

 

38.2

%

Noninterest expense

 

10,881

 

 

11,425

 

 

(544

)

(4.8

%)

 

8,555

 

 

2,326

 

27.2

%

 
Income before income tax expense

 

11,744

 

 

10,996

 

 

748

 

6.8

%

 

7,466

 

 

4,278

 

57.3

%

 
Income tax expense

 

3,336

 

 

2,984

 

 

352

 

11.8

%

 

2,132

 

 

1,204

 

56.5

%

 
Net income

$

8,408

 

$

8,012

 

$

396

 

4.9

%

$

5,334

 

$

3,074

 

57.6

%

 
Effective tax rate

 

28.4

%

 

27.1

%

 

1.3

%

4.7

%

 

28.6

%

 

(0.2

%)

(0.5

%)

 
Outstanding number of shares

 

10,299,361

 

 

10,284,962

 

 

14,399

 

0.1

%

 

10,247,292

 

 

52,069

 

0.5

%

 
Weighted average shares for basic EPS

 

10,291,071

 

 

10,284,962

 

 

6,109

 

0.1

%

 

10,247,292

 

 

43,779

 

0.4

%

Weighted average shares for diluted EPS

 

10,479,488

 

 

10,424,771

 

 

54,717

 

0.5

%

 

10,300,518

 

 

178,970

 

1.7

%

 
Basic EPS

$

0.82

 

$

0.78

 

$

0.04

 

5.1

%

$

0.52

 

$

0.30

 

57.7

%

Diluted EPS

$

0.80

 

$

0.77

 

$

0.03

 

3.9

%

$

0.52

 

$

0.28

 

53.8

%

 
Return on average assets

 

1.91

%

 

1.68

%

 

0.23

%

13.7

%

 

1.58

%

 

0.33

%

20.9

%

Return on average equity

 

18.08

%

 

17.54

%

 

0.54

%

3.1

%

 

13.26

%

 

4.82

%

36.4

%

 
Efficiency ratio¹

 

50.71

%

 

52.84

%

 

(2.13

%)

(4.0

%)

 

51.78

%

 

(1.07

%)

(2.1

%)

Yield on interest-earning assets²

 

3.96

%

 

3.76

%

 

0.20

%

5.3

%

 

4.37

%

 

(0.41

%)

(9.4

%)

Cost of funds

 

0.31

%

 

0.30

%

 

0.01

%

3.3

%

 

0.52

%

 

(0.21

%)

(40.4

%)

Net interest margin²

 

3.68

%

 

3.49

%

 

0.19

%

5.4

%

 

3.90

%

 

(0.22

%)

(5.6

%)

¹ Represents the ratio of noninterest expense less other real estate owned operations to the sum of net interest income before provision for credit losses and total noninterest income, less gains/(loss) on sale of securities, other-than-temporary impairment recovery/(loss) on investment securities and gain/(loss) from other real estate owned.
² Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate
BALANCE SHEET, CAPITAL AND OTHER DATA (Unaudited) - Table 2
(Dollars in thousands)
 
March 31, December 31, $ % March 31, $ %

 

2022

 

 

2021

 

Change Change

 

2021

 

Change Change
ASSETS
Cash and due from banks

$

14,579

 

$

7,702

 

$

6,877

 

89.3

%

$

9,215

 

$

5,364

 

58.2

%

Interest-earning deposits at the FRB and other banks

 

288,603

 

 

284,583

 

 

4,020

 

1.4

%

 

129,713

 

 

158,890

 

122.5

%

Investment securities¹

 

80,104

 

 

84,238

 

 

(4,134

)

(4.9

%)

 

83,409

 

 

(3,305

)

(4.0

%)

Loans held-for-sale, at the lower of cost or fair value

 

149,733

 

 

158,128

 

 

(8,395

)

(5.3

%)

 

76,066

 

 

73,667

 

96.8

%

 
Loans receivable

 

1,225,739

 

 

1,241,319

 

 

(15,580

)

(1.3

%)

 

1,113,629

 

 

112,110

 

10.1

%

Allowance for loan losses

 

(13,089

)

 

(14,192

)

 

1,103

 

7.8

%

 

(14,888

)

 

1,799

 

12.1

%

Loans receivable, net

 

1,212,650

 

 

1,227,127

 

 

(14,477

)

(1.2

%)

 

1,098,741

 

 

113,909

 

10.4

%

 
OREO

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

-

 

-

 

Restricted stock investments

 

8,850

 

 

8,850

 

 

-

 

-

 

 

8,196

 

 

654

 

8.0

%

Servicing assets

 

10,671

 

 

10,632

 

 

39

 

0.4

%

 

10,000

 

 

671

 

0

 

Goodwill

 

2,185

 

 

2,185

 

 

-

 

0.0

%

 

-

 

 

2,185

 

100.0

%

Intangible assets

 

346

 

 

360

 

 

(14

)

(3.9

%)

 

-

 

 

346

 

100.0

%

Other assets

 

24,061

 

 

25,450

 

 

(1,389

)

(5.5

%)

 

21,431

 

 

2,630

 

12.3

%

Total assets

$

1,791,782

 

$

1,809,255

 

$

(17,473

)

(1.0

%)

$

1,436,771

 

$

355,011

 

24.7

%

 
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing

$

576,378

 

$

619,774

 

$

(43,396

)

(7.0

%)

$

408,738

 

$

167,640

 

41.0

%

Interest-bearing

 

957,633

 

 

938,338

 

 

19,295

 

2.1

%

 

782,778

 

 

174,855

 

22.3

%

Total deposits

 

1,534,011

 

 

1,558,112

 

 

(24,101

)

(1.5

%)

 

1,191,516

 

 

342,495

 

28.7

%

 
FHLB advances and other borrowing

 

50,000

 

 

50,000

 

 

-

 

-

 

 

65,000

 

 

(15,000

)

(23.1

%)

Other liabilities

 

16,687

 

 

15,901

 

 

786

 

4.9

%

 

15,170

 

 

1,517

 

10.0

%

Total liabilities

 

1,600,698

 

 

1,624,013

 

 

(23,315

)

(1.4

%)

 

1,271,686

 

 

329,012

 

25.9

%

 
Stockholders' Equity

 

191,084

 

 

185,242

 

 

5,842

 

3.2

%

 

165,085

 

 

25,999

 

15.7

%

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$

1,791,782

 

$

1,809,255

 

$

(17,473

)

(1.0

%)

$

1,436,771

 

$

355,011

 

24.7

%

 
CAPITAL RATIOS
Leverage ratio
Company

 

10.56

%

 

9.55

%

 

1.01

%

10.5

%

 

11.89

%

 

(1.33

%)

(11.2

%)

Bank

 

10.55

%

 

9.55

%

 

1.00

%

10.5

%

 

11.87

%

 

(1.32

%)

(11.1

%)

Common equity tier 1 risk-based capital ratio
Company

 

14.50

%

 

13.83

%

 

0.67

%

4.8

%

 

15.00

%

 

(0.50

%)

(3.3

%)

Bank

 

14.50

%

 

13.82

%

 

0.68

%

4.9

%

 

14.98

%

 

(0.48

%)

(3.2

%)

Tier 1 risk-based capital ratio
Company

 

14.50

%

 

13.83

%

 

0.67

%

4.8

%

 

15.00

%

 

(0.50

%)

(3.3

%)

Bank

 

14.50

%

 

13.82

%

 

0.68

%

4.9

%

 

14.98

%

 

(0.48

%)

(3.2

%)

Total risk-based capital ratio
Company

 

15.57

%

 

14.98

%

 

0.59

%

3.9

%

 

16.25

%

 

(0.68

%)

(4.2

%)

Bank

 

15.57

%

 

14.97

%

 

0.60

%

4.0

%

 

16.23

%

 

(0.66

%)

(4.1

%)

 
Earning Assets

 

1,753,029

 

 

1,777,118

 

 

(24,089

)

(1.4

%)

 

1,411,013

 

$

342,016

 

24.2

%

Outstanding Number of Shares¹

 

10,299,361

 

 

10,284,962

 

 

14,399

 

0.1

%

 

10,247,292

 

 

52,069

 

0.5

%

Tangible Common Equity Ratio

 

10.54

%

 

10.11

%

 

0.43

%

4.3

%

 

11.49

%

 

(0.95

%)

(8.3

%)

 
Tangibel common equity per share

$

18.31

 

$

17.76

 

$

0.55

 

3.1

%

$

16.11

 

$

2.20

 

13.7

%

Loan-to-Deposit (LTD) ratio

 

79.90

%

 

79.67

%

 

0.23

%

0.3

%

 

93.46

%

 

(13.56

%)

(14.5

%)

Nonperforming assets

$

723

 

$

747

 

$

(24

)

(3.2

%)

$

1,347

 

$

(624

)

(46.3

%)

Nonperforming assets as a % of loans receivable

 

0.06

%

 

0.06

%

 

-

 

-

 

 

0.12

%

 

(0.06

%)

(50.0

%)

ALLL as a % of loans receivable

 

1.07

%

 

1.14

%

 

(0.07

%)

(6.1

%)

 

1.34

%

 

(0.27

%)

(20.1

%)

ALLL as a % of loans receivable exc. SBA PPP loans

 

1.09

%

 

1.18

%

 

(0.09

%)

(7.6

%)

 

1.48

%

 

(0.39

%)

(26.4

%)

 
¹ Includes AFS and HTM
FIVE-QUARTER STATEMENT OF INCOME (Unaudited) - Table 3
(Dollars in thousands, except per share amounts)
 
Three Months Ended
March 31, December 31, September 30, June 30, March 31,

 

2022

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

 
Interest income

$

17,032

 

$

17,553

 

$

17,437

 

$

14,923

 

$

14,372

 

Interest expense

 

1,209

 

 

1,265

 

 

1,337

 

 

1,358

 

 

1,533

 

Net interest income

 

15,823

 

 

16,288

 

 

16,100

 

 

13,565

 

 

12,839

 

 
Provision for loan losses

 

(1,167

)

 

(800

)

 

-

 

 

-

 

 

500

 

Net interest income after provision for loan losses

 

16,990

 

 

17,088

 

 

16,100

 

 

13,565

 

 

12,339

 

 
Gain on sale of loans

 

4,668

 

 

4,151

 

 

4,305

 

 

3,988

 

 

2,456

 

Gain (loss) on sale of OREO

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

SBA servicing fee income, net

 

469

 

 

683

 

 

698

 

 

622

 

 

847

 

Reversal of valuation allowance on servicing assets

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Service charges and other income

 

498

 

 

499

 

 

540

 

 

395

 

 

379

 

Noninterest income

 

5,635

 

 

5,333

 

 

5,543

 

 

5,005

 

 

3,682

 

 
Salaries and employee benefits

 

7,065

 

 

6,614

 

 

6,500

 

 

6,000

 

 

4,853

 

Occupancy and equipment

 

1,120

 

 

1,028

 

 

1,067

 

 

945

 

 

979

 

Marketing expense

 

485

 

 

111

 

 

287

 

 

309

 

 

287

 

Professional expense

 

415

 

 

368

 

 

495

 

 

491

 

 

455

 

Merger related expense

 

-

 

 

454

 

 

450

 

 

600

 

 

681

 

Other expenses

 

1,796

 

 

2,850

 

 

1,807

 

 

1,356

 

 

1,300

 

Noninterest expense

 

10,881

 

 

11,425

 

 

10,606

 

 

9,701

 

 

8,555

 

 
Income before income tax expense

 

11,744

 

 

10,996

 

 

11,037

 

 

8,869

 

 

7,466

 

 
Income tax expense

 

3,336

 

 

2,984

 

 

3,156

 

 

2,566

 

 

2,132

 

 
Net income

$

8,408

 

$

8,012

 

$

7,881

 

$

6,303

 

$

5,334

 

 
Effective tax rate

 

28.4

%

 

27.1

%

 

28.6

%

 

28.9

%

 

28.6

%

 
Outstanding number of shares

 

10,299,361

 

 

10,284,962

 

 

10,284,962

 

 

10,279,962

 

 

10,247,292

 

 
Weighted average shares for basic EPS

 

10,291,071

 

 

10,284,962

 

 

10,280,016

 

 

10,262,956

 

 

10,247,292

 

Weighted average shares for diluted EPS

 

10,479,488

 

 

10,424,771

 

 

10,427,687

 

 

10,392,427

 

 

10,300,518

 

 
Basic EPS

$

0.82

 

$

0.78

 

$

0.77

 

$

0.61

 

$

0.52

 

Diluted EPS

$

0.80

 

$

0.77

 

$

0.75

 

$

0.61

 

$

0.52

 

FIVE-QUARTER SALARIES BENEFIT METRICS (Unaudited) - Table 4
(Dollars in thousands)
 
At or for the Three Months Ended
March 31, December 31, September 30, June 30, March 31,

 

2022

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

 
Salaries and benefits

$

7,065

 

$

6,614

 

$

6,500

 

$

6,000

 

$

4,853

 

FTE at the end of period

 

208

 

 

205

 

 

200

 

 

183

 

 

186

 

Average FTE during the period

 

206

 

 

201

 

 

202

 

 

182

 

 

187

 

Salaries and benefits/average FTE¹

$

139

 

$

131

 

$

127

 

$

132

 

$

105

 

Salaries and benefits/average assets¹

 

1.60

%

 

1.39

%

 

1.43

%

 

1.62

%

 

1.44

%

Noninterest expense/average assets¹

 

2.47

%

 

2.40

%

 

2.33

%

 

2.62

%

 

2.54

%

 
1 Annualized
FIVE-QUARTER BALANCE SHEET (Unaudited) - Table 5
(Dollars in thousands)
 
March 31, December 31, September 30, June 30, March 31,

 

2022

 

 

2021

 

 

2021

 

 

2021

 

 

2021

 

ASSETS
Cash and due from banks

$

14,579

 

$

7,702

 

$

11,621

 

$

10,509

 

$

9,215

 

Interest-earning deposits at the FRB and other banks

 

288,603

 

 

284,583

 

 

386,087

 

 

240,932

 

 

129,713

 

Investment securities¹

 

80,104

 

 

84,238

 

 

86,440

 

 

82,354

 

 

83,409

 

Loans held-for-sale, at the lower of cost or fair value

 

149,733

 

 

158,128

 

 

136,394

 

 

96,554

 

 

76,066

 

 
Loans receivable

 

1,225,739

 

 

1,241,319

 

 

1,255,814

 

 

1,133,371

 

 

1,113,629

 

Allowance for loan losses

 

(13,089

)

 

(14,192

)

 

(15,000

)

 

(14,908

)

 

(14,888

)

Loans receivable, net

 

1,212,650

 

 

1,227,127

 

 

1,240,814

 

 

1,118,463

 

 

1,098,741

 

 
OREO

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Restricted stock investments

 

8,850

 

 

8,850

 

 

8,850

 

 

8,850

 

 

8,196

 

Servicing assets

 

10,671

 

 

10,632

 

 

10,392

 

 

10,189

 

 

10,000

 

Goodwill

 

2,185

 

 

2,185

 

 

2,269

 

 

-

 

 

-

 

Intangible assets

 

346

 

 

360

 

 

375

 

 

-

 

 

-

 

Other assets

 

24,061

 

 

25,450

 

 

25,859

 

 

45,071

 

 

21,431

 

Total assets

$

1,791,782

 

$

1,809,255

 

$

1,909,101

 

$

1,612,922

 

$

1,436,771

 

 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing

$

576,378

 

$

619,774

 

$

670,489

 

$

572,284

 

$

408,738

 

Interest-bearing

 

957,633

 

 

938,338

 

 

995,574

 

 

806,397

 

 

782,778

 

Total deposits

 

1,534,011

 

 

1,558,112

 

 

1,666,063

 

 

1,378,681

 

 

1,191,516

 

 
FHLB advances

 

50,000

 

 

50,000

 

 

50,000

 

 

50,000

 

 

65,000

 

Other liabilities

 

16,687

 

 

15,901

 

 

14,719

 

 

13,026

 

 

15,170

 

Total liabilities

 

1,600,698

 

 

1,624,013

 

 

1,730,782

 

 

1,441,707

 

 

1,271,686

 

 
Stockholders' Equity

 

191,084

 

 

185,242

 

 

178,319

 

 

171,215

 

 

165,085

 

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$

1,791,782

 

$

1,809,255

 

$

1,909,101

 

$

1,612,922

 

$

1,436,771

 

 
¹ Includes AFS and HTM
FIVE-QUARTER LOANS RECEIVABLE COMPONENTS (Unaudited) - Table 6
(Dollars in thousands)
 
March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021
Balance % Balance % Balance % Balance % Balance %
 
Construction

$

18,541

1.5

%

$

23,939

1.9

%

$

21,725

1.7

%

$

18,753

1.7

%

$

15,858

1.4

%

Commercial real estate

 

976,924

79.7

%

 

978,995

78.9

%

 

971,387

77.4

%

 

893,700

78.9

%

 

855,861

76.9

%

Commercial and industrial

 

159,111

13.0

%

 

169,489

13.7

%

 

198,217

15.8

%

 

217,350

19.2

%

 

237,865

21.4

%

Home mortgage

 

59,836

4.9

%

 

61,030

4.9

%

 

60,075

0

 

 

-

-

 

 

-

-

 

Consumer

 

7,589

0.6

%

 

4,269

0.3

%

 

2,185

0.2

%

 

2,236

0.2

%

 

3,504

0.3

%

Gross loans

 

1,222,001

99.7

%

 

1,237,722

99.7

%

 

1,253,589

99.8

%

 

1,132,039

99.9

%

 

1,113,088

100.0

%

 
Net deferred loan fees/costs

 

3,738

0.3

%

 

3,597

0.3

%

 

2,225

0.2

%

 

1,332

0.1

%

 

541

0.0

%

Loans receivable

$

1,225,739

100.0

%

$

1,241,319

100.0

%

$

1,255,814

100.0

%

$

1,133,371

100.0

%

$

1,113,629

100.0

%

 
Loans held-for-sale

$

149,733

$

158,128

$

136,394

$

96,554

$

76,066

Loans receivable, including loans held-for-sale

$

1,375,472

$

1,399,447

$

1,392,208

$

1,229,925

$

1,189,695

FIVE-QUARTER SBA LOAN PRODUCTIONS/SALES DATA (Unaudited) - Table 7
(Dollars in thousands)
 
Three Months Ended
March 31, December 31, September 30, June 30, March 31,

 

2022

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

 
SBA loans held-for-sale at beginning of the quarter/year

$

158,128

 

$

136,394

 

$

96,554

 

$

76,066

 

$

59,077

 

SBA loans originated/transferred from/to held-for-
investment during the quarter/year

 

43,132

 

 

68,136

 

 

82,303

 

 

62,864

 

 

48,152

 

SBA loans sold during the quarter/year

 

(50,531

)

 

(42,210

)

 

(42,019

)

 

(42,163

)

 

(30,238

)

SBA loans principal payment, net of advance

 

(996

)

 

(4,193

)

 

(444

)

 

(213

)

 

(925

)

SBA loans held-for-sale at end of the quarter/year

$

149,733

 

$

158,128

 

$

136,394

 

$

96,554

 

$

76,066

 

 
Gain on sale of SBA loans

$

4,668

 

$

4,151

 

$

4,305

 

$

3,988

 

$

2,456

 

Premium on sale (weighted average)

 

11.0

%

 

11.1

%

 

11.5

%

 

11.9

%

 

10.9

%

 
SBA loan production

$

54,523

 

$

82,448

 

$

93,986

 

$

78,058

 

$

123,762

 

Non-PPP loans

 

54,523

 

 

82,448

 

 

93,986

 

 

75,065

 

 

71,204

 

PPP loans

 

-

 

 

-

 

 

-

 

 

2,994

 

 

52,558

 

FIVE QUARTER SBA SERVICING ASSETS AND SERVICING FEES (Unaudited) - Table 8
(Dollars in thousands)
 
Three Months Ended
March 31, December 31, September 30, June 30, March 31,

 

2022

 

 

2021

 

 

2021

 

 

2021

 

 

2021

 

 
 
SBA servicing assets @ beginning of the quarter/year

$

10,632

 

$

10,392

 

$

10,189

 

$

10,000

 

$

9,873

 

 
Newly added SBA servicing assets from SBA loans sold

 

1,052

 

 

1,006

 

 

920

 

 

897

 

 

635

 

Regular quarterly/annual servicing assets amortization

 

(462

)

 

(453

)

 

(421

)

 

(422

)

 

(358

)

SBA servicing assets amortized from SBA loans paid off/charged off

 

(551

)

 

(313

)

 

(296

)

 

(286

)

 

(150

)

 
Subtotal before impairment

 

10,671

 

 

10,632

 

 

10,392

 

 

10,189

 

 

10,000

 

 
Reversal of valuation allowance on servicing assets

 

-

 

 

-

 

 

-

 

 

-

 

 
SBA servicing assets @ the end of the quarter/year

$

10,671

$

10,632

$

10,392

$

10,189

$

10,000

FIVE-QUARTER DEPOSIT COMPONENTS (Unaudited) - Table 9
(Dollars in thousands)
 
March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021
Balance % Balance % Balance % Balance % Balance %
 
Noninterest-bearing demand

$

576,378

37.6

%

$

619,774

39.8

%

$

670,489

40.2

%

$

572,284

41.5

%

$

408,738

34.3

%

Interest-bearing demand

 

12,059

0.8

%

 

10,723

0.7

%

 

10,904

0.7

%

 

-

-

 

 

-

-

 

NOW & MMDA

 

344,501

22.5

%

 

325,313

20.9

%

 

376,549

22.6

%

 

291,437

21.1

%

 

270,531

22.7

%

Savings

 

79,685

5.2

%

 

76,588

4.9

%

 

75,497

4.5

%

 

41,284

3.0

%

 

46,280

3.9

%

TCDs of $250K and under

 

253,617

16.5

%

 

259,758

16.7

%

 

264,130

15.9

%

 

219,174

15.9

%

 

226,611

19.0

%

TCDs of $250K over

 

176,754

11.5

%

 

174,939

11.2

%

 

177,477

10.7

%

 

158,485

11.5

%

 

151,094

12.7

%

Wholesale TCDs

 

91,017

5.9

%

 

91,017

5.8

%

 

91,017

5.5

%

 

96,017

7.0

%

 

88,262

7.4

%

Total Deposits

$

1,534,011

100.0

%

$

1,558,112

100.0

%

$

1,666,063

100.0

%

$

1,378,681

100.0

%

$

1,191,516

100.0

%

 
Recap:
Noninterest-bearing demand

$

576,378

37.6

%

$

619,774

39.8

%

$

670,489

40.2

%

$

572,284

41.5

%

$

408,738

34.3

%

Interest-bearing demand

 

12,059

0.8

%

 

10,723

0.7

%

 

10,904

0.7

%

 

-

-

 

 

-

-

 

NOW & MMDA

 

344,501

22.5

%

 

325,313

20.9

%

 

376,549

22.6

%

 

291,437

21.1

%

 

270,531

22.7

%

Savings

 

79,685

5.2

%

 

76,588

4.9

%

 

75,497

4.5

%

 

41,284

3.0

%

 

46,280

3.9

%

TCDs of $250K and under

 

253,617

16.5

%

 

259,758

16.7

%

 

264,130

15.9

%

 

219,174

15.9

%

 

226,611

19.0

%

Core Deposits

 

1,266,240

82.5

%

 

1,292,156

82.9

%

 

1,397,569

83.9

%

 

1,124,179

81.5

%

 

952,160

79.9

%

 
TCDs of $250K over

 

176,754

11.5

%

 

174,939

11.2

%

 

177,477

10.7

%

 

158,485

11.5

%

 

151,094

12.7

%

Wholesale TCDs

 

91,017

5.9

%

 

91,017

5.8

%

 

91,017

5.5

%

 

96,017

7.0

%

 

88,262

7.4

%

Noncore Deposits

 

267,771

17.5

%

 

265,956

17.1

%

 

268,494

16.1

%

 

254,502

18.5

%

 

239,356

20.1

%

Total Deposits

$

1,534,011

100.0

%

$

1,558,112

100.0

%

$

1,666,063

100.0

%

$

1,378,681

100.0

%

$

1,191,516

100.0

%

FIVE-QUARTER SELECTED LOAN AND ASSET QUALITY HIGHLIGHTS (Unaudited) - Table 10
(Dollars in thousands)
 
1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr.

 

2022

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

Allowance for Loan Losses
Balance at beginning of period

$

14,192

 

$

15,000

 

$

14,908

 

$

14,888

 

$

14,366

 

Provision for loan losses

 

(1,167

)

 

(800

)

 

-

 

 

-

 

 

500

 

Charge-offs

 

-

 

 

(89

)

 

-

 

 

-

 

 

(2

)

Recoveries

 

64

 

 

81

 

 

92

 

 

20

 

 

24

 

Balance at the end of period

$

13,089

 

$

14,192

 

$

15,000

 

$

14,908

 

$

14,888

 

 
Nonperforming Assets:¹
Over 90 days still accruing

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

Nonaccrual loans

 

723

 

 

747

 

 

768

 

 

1,339

 

 

1,347

 

Total nonperforming loans

 

723

 

 

747

 

 

768

 

 

1,339

 

 

1,347

 

 
Other real estate owned

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total nonperforming assets

$

723

 

$

747

 

$

768

 

$

1,339

 

$

1,347

 

 
Classified Assets:¹
Substandard

$

9,300

 

$

11,156

 

$

10,672

 

$

10,052

 

$

9,843

 

Doubtful

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Loss

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total classified loans

$

9,300

 

$

11,156

 

$

10,672

 

$

10,052

 

$

9,843

 

 
Other real estate owned

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total classified assets

$

9,300

 

$

11,156

 

$

10,672

 

$

10,052

 

$

9,843

 

 
Performing TDR loans:

$

3,253

 

$

3,521

 

$

3,658

 

$

3,776

 

$

2,516

 

 
Delinquent Loans:¹
Loans 30-89 days past due

$

6,275

 

$

267

 

$

1,688

 

$

2,524

 

$

1,681

 

90 days or more past due and still accruing

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Nonaccrual

 

723

 

 

747

 

 

768

 

 

1,339

 

 

1,347

 

Total delinquent loans

$

6,998

 

$

1,014

 

$

2,456

 

$

3,863

 

$

3,028

 

 
Asset Quality Ratios:
Net (recoveries) charge-offs to average loans²

 

(0.02

%)

 

0.00

%

 

(0.03

%)

 

(0.01

%)

 

(0.01

%)

Nonaccrual loans to loans receivable

 

0.06

%

 

0.06

%

 

0.06

%

 

0.12

%

 

0.12

%

Nonperforming loans to loans receivable

 

0.06

%

 

0.06

%

 

0.06

%

 

0.12

%

 

0.12

%

Nonperforming assets to total assets

 

0.04

%

 

0.04

%

 

0.04

%

 

0.08

%

 

0.09

%

Classified loans to loans receivable

 

0.76

%

 

0.90

%

 

0.85

%

 

0.89

%

 

0.88

%

Classified loans to Tier 1 and ALLL

 

4.61

%

 

5.67

%

 

5.53

%

 

5.40

%

 

5.47

%

Classified assets to total assets

 

0.52

%

 

0.62

%

 

0.56

%

 

0.62

%

 

0.69

%

Classified assets to Tier 1 and ALLL

 

4.61

%

 

5.67

%

 

5.53

%

 

5.40

%

 

5.47

%

ALLL to loans receivable

 

1.07

%

 

1.14

%

 

1.19

%

 

1.32

%

 

1.34

%

ALLL to loans receivable exc. SBA PPP loans

 

1.09

%

 

1.18

%

 

1.26

%

 

1.42

%

 

1.48

%

ALLL to nonaccrual loans

 

1810.37

%

 

1899.87

%

 

1953.13

%

 

1113.37

%

 

1105.27

%

ALLL to nonperforming loans

 

1810.37

%

 

1899.87

%

 

1953.13

%

 

1113.37

%

 

1105.27

%

ALLL to nonperforming assets

 

1810.37

%

 

1899.87

%

 

1953.13

%

 

1113.37

%

 

1105.27

%

Texas ratio ³

 

0.36

%

 

0.38

%

 

0.40

%

 

0.72

%

 

0.75

%

 
1 Net of SBA guaranteed balance
2 Includes loans held-for-sale
3 Nonperforming assets divided by tangible common equity and ALLL
FIVE-QUARTER CAPITAL RATIOS (Unaudited) - Table 11
 
Well Capitalized Adequately Capitalized March 31, December 31, September 30, June 30, March 31,
Regulatory BASEL III
Requirement Fully Phased In

 

2022

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

 
Leverage ratio
Company

N/A

 

N/A

 

 

10.56

%

 

9.55

%

 

9.61

%

 

11.35

%

 

11.89

%

Bank

5.00

%

4.00

%

 

10.55

%

 

9.55

%

 

9.60

%

 

11.33

%

 

11.87

%

Common equity tier 1 risk-based capital ratio
Company

N/A

 

N/A

 

 

14.50

%

 

13.83

%

 

13.61

%

 

14.39

%

 

15.00

%

Bank

6.50

%

7.00

%

 

14.50

%

 

13.82

%

 

13.59

%

 

14.37

%

 

14.98

%

Tier 1 risk-based capital ratio
Company

N/A

 

N/A

 

 

14.50

%

 

13.83

%

 

13.61

%

 

14.39

%

 

15.00

%

Bank

8.00

%

8.50

%

 

14.50

%

 

13.82

%

 

13.59

%

 

14.37

%

 

14.98

%

Total risk-based capital ratio
Company

N/A

 

N/A

 

 

15.57

%

 

14.98

%

 

14.86

%

 

15.64

%

 

16.25

%

Bank

10.00

%

10.50

%

 

15.57

%

 

14.97

%

 

14.84

%

 

15.62

%

 

16.23

%

 
Tangible common equity/total assets

 

10.54

%

 

10.11

%

 

9.21

%

 

10.62

%

 

11.49

%

Tangibel common equity per share

$

18.31

 

$

17.76

 

$

17.76

 

$

16.66

 

$

16.11

 

FIVE-QUARTER MARGIN ANALYSIS (Unaudited) -Table 12
(Dollars in thousands)
                 
Three Months Ended
March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021
Avg Balance Interest   Yield Avg Balance Interest   Yield Avg Balance   Interest   Yield Avg Balance   Interest   Yield Avg Balance   Interest   Yield
Number of Days in the Period                
INTEREST-EARNING ASSETS                
Loans ¹

$

1,368,996

 

$

16,352

 

4.84

%

$

1,396,201

 

$

16,893

 

4.80

%

$

1,390,851

 

 

$

16,800

 

4.79

%

$

1,195,908

 

 

$

14,338

 

4.81

%

$

1,138,134

 

 

$

13,837

 

4.93

%

Investment securities²

 

82,818

 

 

471

 

2.31

%

 

85,555

 

 

454

 

2.11

%

 

87,585

 

 

 

460

 

2.08

%

 

83,152

 

 

 

442

 

2.13

%

 

84,679

 

 

 

448

 

2.15

%

Interest-earning deposits at the FRB and other banks

 

288,966

 

 

141

 

0.20

%

 

365,501

 

 

144

 

0.16

%

 

282,512

 

 

 

112

 

0.16

%

 

168,677

 

 

 

54

 

0.13

%

 

108,127

 

 

 

36

 

0.14

%

Other earning assets

 

8,850

 

 

119

 

5.45

%

 

8,850

 

 

115

 

5.16

%

 

8,925

 

 

 

116

 

5.16

%

 

8,737

 

 

 

135

 

6.20

%

 

8,196

 

 

 

97

 

4.80

%

Total interest-earning assets ²

 

1,749,630

 

 

17,083

 

3.96

%

 

1,856,107

 

 

17,606

 

3.76

%

 

1,769,873

 

 

 

17,488

 

3.92

%

 

1,456,474

 

 

 

14,969

 

4.12

%

 

1,339,136

 

 

 

14,418

 

4.37

%

                 
NONINTEREST-EARNING ASSETS                
Cash and due from banks

 

13,338

 

 

 

13,318

 

 

 

13,079

 

   

 

10,752

 

   

 

10,025

 

   
Other noninterest-earning assets

 

36,714

 

 

 

37,779

 

 

 

36,548

 

   

 

32,002

 

   

 

31,156

 

   
Total noninterest-earning assets

 

50,052

 

 

 

51,097

 

 

 

49,627

 

   

 

42,754

 

   

 

41,181

 

   
                 
Less: Allowance for loan losses

 

(14,200

)

 

 

(14,849

)

 

 

(14,958

)

   

 

(14,899

)

   

 

(14,381

)

   
TOTAL ASSETS

$

1,785,482

 

 

$

1,892,355

 

 

$

1,804,542

 

   

$

1,484,329

 

   

$

1,365,936

 

   
                 
INTEREST-BEARING DEPOSITS                
Interest-bearing demand

$

27,442

 

$

3

 

0.04

%

$

27,904

 

$

3

 

0.04

%

$

36,670

 

 

$

4

 

0.04

%

$

13,373

 

 

$

2

 

0.06

%

$

15,813

 

 

$

2

 

0.05

%

Money market

 

321,694

 

 

356

 

0.45

%

 

338,937

 

 

401

 

0.47

%

 

312,606

 

 

 

388

 

0.49

%

 

263,845

 

 

 

352

 

0.54

%

 

265,856

 

 

 

366

 

0.56

%

Savings

 

76,967

 

 

61

 

0.32

%

 

77,057

 

 

68

 

0.35

%

 

74,266

 

 

 

71

 

0.38

%

 

43,433

 

 

 

55

 

0.51

%

 

48,284

 

 

 

60

 

0.50

%

Time deposits

 

529,421

 

 

673

 

0.52

%

 

527,634

 

 

674

 

0.51

%

 

542,901

 

 

 

756

 

0.55

%

 

469,000

 

 

 

831

 

0.71

%

 

451,347

 

 

 

975

 

0.88

%

Total interest-bearing deposits

 

955,524

 

 

1,093

 

0.46

%

 

971,532

 

 

1,146

 

0.47

%

 

966,443

 

 

 

1,219

 

0.50

%

 

789,651

 

 

 

1,240

 

0.63

%

 

781,300

 

 

 

1,403

 

0.73

%

                 
Borrowings

 

50,000

 

 

116

 

0.94

%

 

50,000

 

 

119

 

0.94

%

 

50,000

 

 

 

118

 

0.94

%

 

51,539

 

 

 

118

 

0.92

%

 

65,667

 

 

 

130

 

0.80

%

Total interest-bearing liabilities

 

1,005,524

 

 

1,209

 

0.49

%

 

1,021,532

 

 

1,265

 

0.49

%

 

1,016,443

 

 

 

1,337

 

0.52

%

 

841,190

 

 

 

1,358

 

0.65

%

 

846,967

 

 

 

1,533

 

0.73

%

                 
Noninterest-bearing deposits

 

574,436

 

 

 

673,154

 

 

 

597,056

 

   

 

459,695

 

   

 

343,904

 

   
Other liabilities

 

16,966

 

 

 

16,425

 

 

 

16,046

 

   

 

13,906

 

   

 

11,942

 

   
                 
Stockholders' equity

 

188,556

 

 

 

181,244

 

 

 

174,997

 

   

 

169,538

 

   

 

163,123

 

   
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$

1,785,482

 

 

$

1,892,355

 

 

$

1,804,542

 

   

$

1,484,329

 

   

$

1,365,936

 

   
                 
Net interest income²

$

15,874

 

$

16,341

   

$

16,151

   

$

13,611

   

$

12,885

 
                 
Net interest spread  

3.47

%

 

3.27

%

   

3.40

%

   

3.47

%

   

3.64

%

                 
Effect of noninterest-bearing sources  

0.21

%

 

0.22

%

   

0.22

%

   

0.28

%

   

0.26

%

                 
Net interest margin²  

3.68

%

 

3.49

%

   

3.62

%

   

3.75

%

   

3.90

%

                 
                 
Cost of deposits

$

1,529,960

 

$

1,093

 

0.29

%

$

1,644,686

 

$

1,146

 

0.28

%

$

1,563,499

 

 

$

1,219

 

0.31

%

$

1,249,346

 

 

$

1,240

 

0.40

%

$

1,125,204

 

 

$

1,403

 

0.51

%

                 
Cost of funds

$

1,579,960

 

$

1,209

 

0.31

%

$

1,694,686

 

$

1,265

 

0.30

%

$

1,613,499

 

 

$

1,337

 

0.33

%

$

1,300,885

 

 

$

1,358

 

0.42

%

$

1,190,871

 

 

$

1,533

 

0.52

%

 
1 Includes loans held-for-sale
² Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate
FIVE-QUARTER COMPONENTS OF YIELD ON LOANS (Unaudited) - Table 13
(Dollars in thousands)
 
Three Months Ended
March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021
Amount Yield Amount Yield Amount Yield Amount Yield Amount Yield
 
Contractual yield

$

14,596

4.32

%

$

15,142

4.30

%

$

15,032

4.29

%

$

12,670

4.25

%

$

12,148

4.33

%

SBA discount accretion

 

1,421

0.42

%

 

1,024

0.29

%

 

1,038

0.30

%

 

1,027

0.34

%

 

738

0.26

%

Prepayment penalties & late fees

 

107

0.03

%

 

72

0.02

%

 

41

0.01

%

 

89

0.03

%

 

121

0.04

%

Amortization of net deferred costs

 

228

0.07

%

 

655

0.19

%

 

689

0.20

%

 

552

0.19

%

 

830

0.30

%

As reported yield on loans

$

16,352

4.84

%

$

16,893

4.80

%

$

16,800

4.79

%

$

14,338

4.81

%

$

13,837

4.93

%

 

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