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CBB Bancorp, Inc. Reports Third Quarter 2023 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 third quarter 2023 of $6.7 million, or $0.63 per diluted share, a decrease of 17.1% compared to $8.1 million, or $0.76 per diluted share, in the prior quarter and an increase of 16.7% compared to $5.7 million, or $0.54 per diluted share, in the same period last year.

OVERALL RESULTS

Net income for the third quarter 2023 declined from the prior period due to lower gain on sale of SBA loans and reduced net interest margin caused by rising cost of deposits. The return on average assets for the third quarter 2023 was 1.46% compared to 1.79% for the second quarter 2023 and 1.27% for the third quarter 2022. The return on average equity for the third quarter 2023 was 11.66%, compared to 14.76% for the second quarter 2023 and 11.24% for the third quarter 2022. The net interest margin for the third quarter 2023 was 4.01%, compared to 4.23% for the second quarter 2023 and 4.28% for the third quarter 2022. The efficiency ratio for the third quarter 2023 was 52.23%, compared to 47.29% for the second quarter 2023 and 55.64% for the third quarter 2022. While the efficiency ratio has decreased year over year, it increased quarter over quarter due to lower gain on sale of loans compared to the second quarter.

James Hong, President and CEO, commented, “We are pleased to announce continuing profitability for the third quarter of 2023, with strong liquidity, credit, and capital metrics. While the decisions on the timing of when to sell SBA loans contributed to lower earnings compared to the second quarter, we remain committed to building the core earnings of the Company in a safe and sound manner over time.”

INCOME STATEMENT

Net Interest Income

Net interest income for the third quarter 2023 was $18.0 million, a decrease of $726 thousand, or 3.9%, from the second quarter 2023, and a decrease of $819 thousand, or 4.4%, from the third quarter 2022. The decrease in net interest income compared with both the second quarter 2023 and the third quarter 2022 was primarily due to the impact of relatively higher increases in interest expense on deposits.

Net Interest Margin

The net interest margin for the third quarter 2023 was 4.01%, compared to 4.23% for the second quarter 2023 and 4.28% for the third quarter 2022. The quarter-over-quarter and year-over-year decreases in net interest margin were attributable to the rising cost of funds. The cost of funds for the third quarter 2023 increased to 2.91% compared to 2.53% for second quarter 2023 and 0.63% for third quarter 2022.

Provision for Credit Losses

No provision for credit losses was recorded for the third quarter 2023 or for the second quarter 2023, compared with a provision for credit losses of $0.9 million for the third quarter 2022. See Table 10 in this press release for additional information and trends.

Noninterest Income

Noninterest income in third quarter 2023 was $1.5 million compared to $2.8 million in second quarter 2023 and $1.2 million in third quarter 2022. The quarter-over-quarter decrease in noninterest income was primarily the result of lower gain on sale of loans. The Bank sold $9.2 million in SBA loans with an average premium of 8.3% during third quarter 2023 compared to sale of $42.4 million in SBA loans with an average premium of 6.8% during second quarter 2023. There was no sale of SBA loans during the third quarter 2022.

Noninterest Expense

Noninterest expense for the third quarter 2023 was $10.2 million, compared to $10.2 million for the second quarter 2023 and $11.2 million for the third quarter 2022. Salaries and employee benefits were $5.6 million in both third and second quarters of 2023, which decreased $1.3 million compared to the third quarter 2022. Lower salaries and employee benefits in the current quarter compared to the same quarter last year reflect both ongoing cost control efforts and efficiencies realized from completing the integration of Ohana Pacific Bank operations.

Income Taxes

The Company’s effective tax rate for third quarter 2023 was 28.3% compared to 28.6% for second quarter 2023 and 28.3% for third quarter 2022.

BALANCE SHEET

Investment Securities

Investment securities were $61.6 million on September 30, 2023, a decrease of $4.8 million or 7.2% from June 30, 2023, and a decrease of $14.2 million or 18.8% from September 30, 2022. The decreases were due to principal paydowns and an absence of portfolio additions in the nine months of 2023, or in the fourth quarter 2022. The unrealized losses on available for sale investments were approximately $1.1 million at September 30, 2023, $0.9 million at June 30, 2023, and $1.4 million at September 30, 2022, all net of tax effects. Management believes that the Bank currently has adequate liquidity and does not need to sell any securities for liquidity purposes.

Loans Receivable

Loans receivable (including loans held-for-sale) at September 30, 2023, was $1.4 billion, an increase of $4.3 million, or 0.3% from June 30, 2023, and a decrease of $26.4 million, or 1.8%, from September 30, 2022. The slow increase in loans receivable compared to last quarter and decrease from a year ago, reflects the difficult environment for loan originations due to reduced demand stemming from the higher interest rate environment.

The weighted average loan-to-value ratio of commercial real estate loans (“CRE”) was 66.5% at September 30, 2023. Excluding SBA loans, the weighted average loan-to-value ratio of CRE loans was 49.2%.

Allowance for Credit Losses and Asset Quality

The allowance for credit losses at September 30, 2023, was $15.3 million, or 1.27% of total loans compared to $15.6 million, or 1.30% of total loans at June 30, 2023, and $15.6 million, or 1.24% of total loans at September 30, 2022. Nonperforming loans at September 30, 2023 were $618 thousand, compared to $684 thousand at June 30, 2023, and $690 thousand at September 30, 2022. The coverage ratio of allowance for credit losses to nonperforming assets exceeded 2200% at September 30, 2023.

SBA Loans Held-for-Sale

Total SBA loans held-for-sale at September 30, 2023, was $219.4 million, compared to $ 215.1 million at June 30 2023, and $186.4 million at September 30, 2022. We continue to assess SBA loan market premiums and plan to sell loans when 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 September 30, 2023, up $26.9 million, or 1.8%, from June 30, 2023, and up $16.0 million, or 1.0%, from September 30, 2022. Noninterest-bearing demand deposits (“DDAs”) at September 30, 2023 decreased $20.3 million, or 4.8%, to $406.0 million from the previous quarter, and decreased $156.0 million, or 27.8%, from September 30, 2022. DDAs were 26.6% of total deposits at September 30, 2023, compared to 28.6% at June 30, 2023, and 37.3% at September 30, 2022. NOW and MMDA accounts increased $16.9 million, or 8.0%, to $227.3 million at September 30, 2023 from the previous quarter and decreased $86.4 million, or 27.6%, compared to September 30, 2022. The quarter over quarter and year over year declines in DDAs can be attributed to the growing interest rate environment. Depositors were eager to capitalize on the rising interest rates, leading to a decrease in DDAs and a simultaneous increase in NOW and MMDA balances.

As of September 30, 2023, time deposits increased $16.3 million, or 2.0%, quarter over quarter, and $250 million, or 43.1%, from September 30, 2022. Time deposits at September 30, 2023, were $830.6 million, or 53.6% of total deposits, compared to $814.3 million, or 53.5% of total deposits at June 30, 2023, and $580.6 million, or 37.9% of total deposits at September 30, 2022. The increase in time deposits during the third quarter of 2023 compared to a year ago reflects depositors’ preferences for higher paying term deposits over money market and checking accounts as rates have risen significantly since March 2022. The primary reason for the decrease in noninterest-bearing deposits during 2023 was a decline in escrow-related deposits as the higher interest rate environment caused a significant slowdown in business activities for that sector.

Other Liabilities

Other Liabilities increased 30% quarter over quarter and 121% year over year, primarily due to increases in accrued interest payable, as the Bank’s overall cost of funds increased during these periods.

Borrowings

The Bank has maintained $50.0 million of Federal Home Loan Bank advances since September 30, 2022. The blended cost of FHLB advances was 0.94% as of September 30, 2023.

Capital

Stockholders’ equity was $228.9 million at September 30, 2023 representing an increase of $5.6 million, or 2.5%, from $223.3 million at June 30, 2023. Tangible book value per share at September 30, 2023, was $21.39, compared with $20.85 at June 30, 2023, an increase of $0.54, or 2.6%, per share.

Each of the Company’s and the Bank’s regulatory capital ratios increased at September 30, 2023 when compared to June 30, 2023 and September 30, 2022. Capital ratios continue to exceed the minimum levels required to be considered “Well Capitalized” under the applicable regulatory capital rules and in compliance with the fully phased-in Basel III requirements as shown on Table 11 in this press release. The Common Equity Tier 1 risked-based capital at September 30, 2023, was 17.61% at the Company level and 17.57% at the Bank level, and total capital ratios were 18.83% and 18.79% for the Company and the Bank, respectively.

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 September 30, 2023, the Bank had eleven 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 the tab “About Us” and select “Investors Relations” to see the 3Q 2023 Overview.

FORWARD-LOOKING STATEMENTS:

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. CBB Bancorp, Inc. (the “Company”) intend that such forward-looking statements be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Future events are difficult to predict, and the expectations described herein are necessarily subject to risks and uncertainties that may cause actual results to differ materially and adversely from those described herein. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. Factors that might cause actual results to differ materially from those presented, either expressed or implied, in this news release include, but are not limited to: the Company’s ability to successfully execute its business plans and achieve its objectives; changes in general economic and financial market conditions, either nationally or locally in areas in which the Company conducts its operations; changes in interest rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Company’s operations or business; loss of key personnel; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies.

The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent 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

 

Nine Months Ended

September 30,

 

June 30,

 

$

 

%

 

September 30,

 

$

 

%

 

September 30,

 

September 30,

 

$

 

%

 

2023

 

 

 

2023

 

 

Change

 

Change

 

 

2022

 

 

Change

 

Change

 

 

2023

 

 

 

2022

 

 

Change

 

Change

 
Interest income

$

29,450

 

$

28,664

 

$

786

 

2.7

%

$

21,334

 

$

8,116

 

38.0

%

$

85,362

 

$

56,173

 

$

29,189

 

52.0

%

Interest expense

 

11,442

 

 

9,930

 

 

1,512

 

15.2

%

 

2,507

 

 

8,935

 

356.4

%

 

29,540

 

 

5,085

 

 

24,455

 

480.9

%

Net interest income

 

18,008

 

 

18,734

 

 

(726

)

(3.9

%)

 

18,827

 

 

(819

)

(4.4

%)

 

55,822

 

 

51,088

 

 

4,734

 

9.3

%

 
Provision for credit losses

 

-

 

 

-

 

 

-

 

-

 

 

910

 

 

(910

)

(100.0

%)

 

-

 

 

1,343

 

 

(1,343

)

(100.0

%)

Net interest income after provision for credit losses

 

18,008

 

 

18,734

 

 

(726

)

(3.9

%)

 

17,917

 

 

91

 

0.5

%

 

55,822

 

 

49,745

 

 

6,077

 

12.2

%

 
Gain on sale of loans

 

419

 

 

1,952

 

 

(1,533

)

-78.5

%

 

-

 

 

419

 

100.0

%

 

2,371

 

 

7,966

 

 

(5,595

)

(70.2

%)

SBA servicing fee income, net

 

639

 

 

440

 

 

199

 

45.2

%

 

709

 

 

(70

)

(9.9

%)

 

1,733

 

 

1,956

 

 

(223

)

(11.4

%)

Service charges and other income

 

402

 

 

407

 

 

(5

)

(1.2

%)

 

518

 

 

(116

)

(22.4

%)

 

1,207

 

 

1,478

 

 

(271

)

(18.3

%)

Noninterest income

 

1,460

 

 

2,799

 

 

(1,339

)

(47.8

%)

 

1,227

 

 

233

 

19.0

%

 

5,311

 

 

11,400

 

 

(6,089

)

(53.4

%)

 
Salaries and employee benefits

 

5,569

 

 

5,581

 

 

(12

)

(0.2

%)

 

6,861

 

 

(1,292

)

(18.8

%)

 

17,229

 

 

20,920

 

 

(3,691

)

(17.6

%)

Occupancy and equipment

 

1,103

 

 

1,122

 

 

(19

)

(1.7

%)

 

1,118

 

 

(15

)

(1.3

%)

 

3,349

 

 

3,352

 

 

(3

)

(0.1

%)

Marketing expense

 

475

 

 

409

 

 

66

 

16.1

%

 

489

 

 

(14

)

(2.9

%)

 

1,258

 

 

1,485

 

 

(227

)

(15.3

%)

Professional expense

 

443

 

 

436

 

 

7

 

1.6

%

 

519

 

 

(76

)

(14.6

%)

 

1,333

 

 

1,451

 

 

(118

)

(8.1

%)

Merger related expense

 

5

 

 

2

 

 

3

 

150.0

%

 

47

 

 

(42

)

(89.4

%)

 

16

 

 

170

 

 

(154

)

(90.6

%)

Other expenses

 

2,574

 

 

2,633

 

 

(59

)

(2.2

%)

 

2,125

 

 

449

 

21.1

%

 

7,442

 

 

5,035

 

 

2,407

 

47.8

%

Noninterest expense

 

10,169

 

 

10,183

 

 

(14

)

(0.1

%)

 

11,159

 

 

(990

)

(8.9

%)

 

30,627

 

 

32,413

 

 

(1,786

)

(5.5

%)

 
Income before income tax provision

 

9,299

 

 

11,350

 

 

(2,051

)

(18.1

%)

 

7,985

 

 

1,314

 

16.5

%

 

30,506

 

 

28,732

 

 

1,774

 

6.2

%

 
Income tax provision

 

2,630

 

 

3,248

 

 

(618

)

(19.0

%)

 

2,258

 

 

372

 

16.5

%

 

8,645

 

 

8,141

 

 

504

 

6.2

%

 
Net income

$

6,669

 

$

8,102

 

$

(1,433

)

(17.7

%)

$

5,727

 

$

942

 

16.4

%

$

21,861

 

$

20,591

 

$

1,270

 

6.2

%

 
Effective tax rate

 

28.3

%

 

28.6

%

 

(0.3

%)

(1.2

%)

 

28.3

%

 

0.0

%

0.0

%

 

28.3

%

 

28.3

%

 

0.0

%

0.0

%

 
Outstanding number of shares

 

10,588,136

 

 

10,588,136

 

 

-

 

-

 

 

10,569,601

 

 

18,535

 

0.2

%

 

10,588,136

 

 

10,569,601

 

 

18,535

 

0.2

%

 
Weighted average shares for basic EPS

 

10,588,136

 

 

10,588,136

 

 

-

 

0.0

%

 

10,516,394

 

 

71,742

 

0.7

%

 

10,584,198

 

 

10,371,652

 

 

212,546

 

2.0

%

Weighted average shares for diluted EPS

 

10,594,155

 

 

10,591,351

 

 

2,804

 

0.0

%

 

10,545,544

 

 

48,611

 

0.5

%

 

10,595,275

 

 

10,476,560

 

 

118,715

 

1.1

%

 
Basic EPS

$

0.63

 

$

0.77

 

$

(0.14

)

(18.2

%)

$

0.54

 

$

0.09

 

16.7

%

$

2.07

 

$

1.98

 

$

0.09

 

4.5

%

Diluted EPS

$

0.63

 

$

0.76

 

$

(0.13

)

(17.1

%)

$

0.54

 

$

0.09

 

16.7

%

$

2.06

 

$

1.96

 

$

0.10

 

5.1

%

 
Return on average assets

 

1.46

%

 

1.79

%

 

(0.33

%)

(18.4

%)

 

1.27

%

 

0.19

%

15.0

%

 

1.61

%

 

1.53

%

 

0.08

%

5.2

%

Return on average equity

 

11.66

%

 

14.76

%

 

(3.10

%)

(21.0

%)

 

11.24

%

 

0.42

%

3.7

%

 

13.27

%

 

14.10

%

 

(0.83

%)

(5.9

%)

 
Efficiency ratio¹

 

52.23

%

 

47.29

%

 

4.94

%

10.5

%

 

55.64

%

 

(3.41

%)

(6.1

%)

 

50.10

%

 

51.87

%

 

(1.77

%)

(3.4

%)

Yield on interest-earning assets²

 

6.55

%

 

6.46

%

 

0.09

%

1.4

%

 

4.85

%

 

1.70

%

35.1

%

 

6.42

%

 

4.29

%

 

2.13

%

49.7

%

Cost of funds

 

2.91

%

 

2.53

%

 

0.38

%

15.0

%

 

0.63

%

 

2.28

%

361.9

%

 

2.51

%

 

0.43

%

 

2.08

%

483.7

%

Net interest margin²

 

4.01

%

 

4.23

%

 

(0.22

%)

(5.2

%)

 

4.28

%

 

(0.27

%)

(6.3

%)

 

4.20

%

 

3.91

%

 

0.29

%

7.4

%

 
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.
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)
 

September 30,

 

June 30,

 

$

 

%

 

September 30,

 

$

 

%

 

2023

 

 

 

2023

 

 

Change

 

Change

 

 

2022

 

 

Change

 

Change

ASSETS

Cash and due from banks

$

11,188

 

$

12,704

 

$

(1,516

)

(11.9

%)

$

17,232

 

$

(6,044

)

(35.1

%)

Interest-earning deposits at the FRB and other banks

 

335,016

 

 

293,394

 

 

41,622

 

14.2

%

 

225,044

 

 

109,972

 

48.9

%

Investment securities¹

 

61,617

 

 

66,400

 

 

(4,783

)

(7.2

%)

 

75,839

 

 

(14,222

)

(18.8

%)

Loans held-for-sale

 

219,355

 

 

215,083

 

 

4,272

 

2.0

%

 

186,438

 

 

32,917

 

17.7

%

 

Loans held-for-investment

 

1,201,230

 

 

1,201,237

 

 

(7

)

(0.0

%)

 

1,260,590

 

 

(59,360

)

(4.7

%)

Less: Allowance for credit losses ("ACL")

 

(15,284

)

 

(15,626

)

 

342

 

2.2

%

 

(15,602

)

 

318

 

2.0

%

Loans held-for-investment, net

 

1,185,946

 

 

1,185,611

 

 

335

 

0.0

%

 

1,244,988

 

 

(59,042

)

(4.7

%)

 

Other real estate owned ("OREO")

 

55

 

 

-

 

 

55

 

100.0

%

 

-

 

 

55

 

100.0

%

Restricted stock investments

 

11,011

 

 

11,011

 

 

-

 

-

 

 

10,121

 

 

890

 

8.8

%

Servicing assets

 

7,873

 

 

8,426

 

 

(553

)

(6.6

%)

 

10,158

 

 

(2,285

)

(22.5

%)

Goodwill

 

2,185

 

 

2,185

 

 

-

 

-

 

 

2,185

 

 

-

 

-

 

Intangible assets

 

267

 

 

279

 

 

(12

)

(4.3

%)

 

317

 

 

(50

)

(15.8

%)

Other assets

 

24,799

 

 

24,537

 

 

262

 

1.1

%

 

27,845

 

 

(3,046

)

(10.9

%)

Total assets

$

1,859,312

 

$

1,819,630

 

$

39,682

 

2.2

%

$

1,800,167

 

$

59,145

 

3.3

%

 
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing

$

406,033

 

$

426,333

 

$

(20,300

)

(4.8

%)

$

562,051

 

$

(156,018

)

(27.8

%)

Interest-bearing

 

1,143,257

 

 

1,096,078

 

 

47,179

 

4.3

%

 

971,263

 

 

171,994

 

17.7

%

Total deposits

 

1,549,290

 

 

1,522,411

 

 

26,879

 

1.8

%

 

1,533,314

 

 

15,976

 

1.0

%

 
FHLB advances and other borrowing

 

50,000

 

 

50,000

 

 

-

 

-

 

 

50,000

 

 

-

 

-

 

Other liabilities

 

31,141

 

 

23,956

 

 

7,185

 

30.0

%

 

14,109

 

 

17,032

 

120.7

%

Total liabilities

 

1,630,431

 

 

1,596,367

 

 

34,064

 

2.1

%

 

1,597,423

 

 

33,008

 

2.1

%

 
Stockholders' Equity

 

228,881

 

 

223,263

 

 

5,618

 

2.5

%

 

202,744

 

 

26,137

 

12.9

%

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$

1,859,312

 

$

1,819,630

 

$

39,682

 

2.2

%

$

1,800,167

 

$

59,145

 

3.3

%

 
CAPITAL RATIOS
Leverage ratio
Company

 

12.53

%

 

12.23

%

 

0.30

%

2.4

%

 

11.25

%

 

1.28

%

11.4

%

Bank

 

12.50

%

 

12.20

%

 

0.31

%

2.5

%

 

11.15

%

 

1.35

%

12.1

%

Common equity tier 1 risk-based capital ratio
Company

 

17.61

%

 

17.08

%

 

0.53

%

3.1

%

 

14.82

%

 

2.79

%

18.8

%

Bank

 

17.58

%

 

17.03

%

 

0.55

%

3.2

%

 

14.70

%

 

2.88

%

19.6

%

Tier 1 risk-based capital ratio
Company

 

17.61

%

 

17.08

%

 

0.53

%

3.1

%

 

14.82

%

 

2.79

%

18.8

%

Bank

 

17.57

%

 

17.03

%

 

0.54

%

3.2

%

 

14.70

%

 

2.88

%

19.6

%

Total risk-based capital ratio
Company

 

18.83

%

 

18.32

%

 

0.51

%

2.8

%

 

16.02

%

 

2.81

%

17.6

%

Bank

 

18.79

%

 

18.27

%

 

0.52

%

2.9

%

 

15.89

%

 

2.90

%

18.2

%

Tangible common equity per share

$

21.39

 

$

20.85

 

$

0.54

 

2.6

%

$

18.95

 

$

2.44

 

12.9

%

Loan-to-Deposit ("LTD") ratio

 

77.53

%

 

78.90

%

 

(1.37

%)

(1.7

%)

 

82.21

%

 

(4.68

%)

(5.7

%)

Nonperforming assets

$

673

 

$

684

 

$

(11

)

(1.6

%)

$

690

 

$

(17

)

(2.5

%)

Nonperforming assets as a % of loans held-for-investment

 

0.06

%

 

0.06

%

 

0.00

%

0.00

%

 

0.05

%

 

0.01

%

20.0

%

ACL as a % of loans held-for-investment

 

1.27

%

 

1.30

%

 

(0.03

%)

(2.31

%)

 

1.24

%

 

0.03

%

2.4

%

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

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

 

 

2022

 

 
Interest income

$

29,450

 

$

28,664

 

$

27,248

 

$

24,744

 

$

21,334

 

Interest expense

 

11,442

 

 

9,930

 

 

8,168

 

 

4,677

 

 

2,507

 

Net interest income

 

18,008

 

 

18,734

 

 

19,080

 

 

20,067

 

 

18,827

 

 
Provision for credit losses

 

-

 

 

-

 

 

-

 

 

-

 

 

910

 

Net interest income after provision for credit losses

 

18,008

 

 

18,734

 

 

19,080

 

 

20,067

 

 

17,917

 

 
Gain on sale of loans

 

419

 

 

1,952

 

 

-

 

 

-

 

 

-

 

SBA servicing fee income, net

 

639

 

 

440

 

 

654

 

 

491

 

 

709

 

Service charges and other income

 

402

 

 

407

 

 

398

 

 

457

 

 

518

 

Noninterest income

 

1,460

 

 

2,799

 

 

1,052

 

 

948

 

 

1,227

 

 
Salaries and employee benefits

 

5,569

 

 

5,581

 

 

6,079

 

 

6,233

 

 

6,861

 

Occupancy and equipment

 

1,103

 

 

1,122

 

 

1,124

 

 

1,133

 

 

1,118

 

Marketing expense

 

475

 

 

409

 

 

374

 

 

434

 

 

489

 

Professional expense

 

443

 

 

436

 

 

454

 

 

418

 

 

519

 

Merger related expense

 

5

 

 

2

 

 

9

 

 

7

 

 

47

 

Other expenses

 

2,574

 

 

2,633

 

 

2,235

 

 

2,579

 

 

2,125

 

Noninterest expense

 

10,169

 

 

10,183

 

 

10,275

 

 

10,804

 

 

11,159

 

 
Income before income tax expense

 

9,299

 

 

11,350

 

 

9,857

 

 

10,211

 

 

7,985

 

 
Income tax expense

 

2,630

 

 

3,248

 

 

2,767

 

 

2,882

 

 

2,258

 

 
Net income

$

6,669

 

$

8,102

 

$

7,090

 

$

7,329

 

$

5,727

 

 
Effective tax rate

 

28.3

%

 

28.6

%

 

28.1

%

 

28.2

%

 

28.3

%

 
Outstanding number of shares

 

10,588,136

 

 

10,588,136

 

 

10,588,136

 

 

10,569,601

 

 

10,569,601

 

 
Weighted average shares for basic EPS

 

10,588,136

 

 

10,588,136

 

 

10,576,191

 

 

10,569,601

 

 

10,516,394

 

Weighted average shares for diluted EPS

 

10,594,155

 

 

10,591,351

 

 

10,600,189

 

 

10,600,053

 

 

10,545,544

 

 
Basic EPS

$

0.63

 

$

0.77

 

$

0.67

 

$

0.70

 

$

0.54

 

Diluted EPS

$

0.63

 

$

0.76

 

$

0.67

 

$

0.70

 

$

0.54

 

FIVE-QUARTER SALARIES BENEFIT METRICS (Unaudited) - Table 4
(Dollars in thousands)
 

At or for the Three Months Ended

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

 

 

2022

 

 
Salaries and benefits

$

5,569

 

$

5,581

 

$

6,079

 

$

6,233

 

$

6,861

 

FTE at the end of period

 

172

 

 

165

 

 

170

 

 

179

 

 

190

 

Average FTE during the period

 

168

 

 

164

 

 

174

 

 

184

 

 

193

 

Salaries and benefits/average FTE¹

$

131

 

$

137

 

$

142

 

$

134

 

$

141

 

Salaries and benefits/average assets¹

 

1.22

%

 

1.23

%

 

1.36

%

 

1.39

%

 

1.52

%

Noninterest expense/average assets¹

 

2.22

%

 

2.25

%

 

2.30

%

 

2.41

%

 

2.47

%

 
1 Annualized
FIVE-QUARTER BALANCE SHEET (Unaudited) - Table 5
(Dollars in thousands)
 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

 

 

2022

 

ASSETS
Cash and due from banks

$

11,188

 

$

12,704

 

$

13,788

 

$

20,134

 

$

17,232

 

Interest-earning deposits at the FRB and other banks

 

335,016

 

 

293,394

 

 

240,602

 

 

170,839

 

 

225,044

 

Investment securities

 

61,617

 

 

66,400

 

 

68,943

 

 

72,550

 

 

75,839

 

Loans held-for-sale

 

219,355

 

 

215,083

 

 

243,753

 

 

230,431

 

 

186,438

 

 
Loans held-for-investment

 

1,201,230

 

 

1,201,237

 

 

1,222,867

 

 

1,285,278

 

 

1,260,590

 

Less: Allowance for credit losses

 

(15,284

)

 

(15,626

)

 

(15,627

)

 

(15,525

)

 

(15,602

)

Loans held-for-investment, net

 

1,185,946

 

 

1,185,611

 

 

1,207,240

 

 

1,269,753

 

 

1,244,988

 

 

Other real estate owned

 

55

 

 

-

 

 

-

 

 

-

 

 

-

 

Restricted stock investments

 

11,011

 

 

11,011

 

 

10,121

 

 

10,121

 

 

10,121

 

Servicing assets

 

7,873

 

 

8,426

 

 

8,528

 

 

9,232

 

 

10,158

 

Goodwill

 

2,185

 

 

2,185

 

 

2,185

 

 

2,185

 

 

2,185

 

Intangible assets

 

267

 

 

279

 

 

291

 

 

303

 

 

317

 

Other assets

 

24,799

 

 

24,537

 

 

25,697

 

 

26,939

 

 

27,845

 

Total assets

$

1,859,312

 

$

1,819,630

 

$

1,821,148

 

$

1,812,487

 

$

1,800,167

 

 
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing

$

406,033

 

$

426,333

 

$

428,559

 

$

451,651

 

$

562,051

 

Interest-bearing

 

1,143,257

 

 

1,096,078

 

 

1,108,754

 

 

1,086,599

 

 

971,263

 

Total deposits

 

1,549,290

 

 

1,522,411

 

 

1,537,313

 

 

1,538,250

 

 

1,533,314

 

 
FHLB advances

 

50,000

 

 

50,000

 

 

50,000

 

 

50,000

 

 

50,000

 

Other liabilities

 

31,141

 

 

23,956

 

 

17,651

 

 

14,706

 

 

14,109

 

Total liabilities

 

1,630,431

 

 

1,596,367

 

 

1,604,964

 

 

1,602,956

 

 

1,597,423

 

 
Stockholders' Equity

 

228,881

 

 

223,263

 

 

216,184

 

 

209,531

 

 

202,744

 

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$

1,859,312

 

$

1,819,630

 

$

1,821,148

 

$

1,812,487

 

$

1,800,167

 

FIVE-QUARTER LOANS RECEIVABLE COMPONENTS (Unaudited) - Table 6
(Dollars in thousands)
 
September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022
Balance % Balance % Balance % Balance % Balance %
 
Construction

$

30,924

2.6

%

$

20,106

1.7

%

$

19,550

1.6

%

$

17,537

1.4

%

$

14,919

1.2

%

Commercial real estate

 

1,005,735

83.7

%

 

1,014,785

84.5

%

 

1,033,124

84.5

%

 

1,078,588

83.9

%

 

1,050,154

83.3

%

Commercial and industrial

 

113,374

9.4

%

 

114,106

9.4

%

 

114,184

9.3

%

 

125,298

9.7

%

 

128,099

10.1

%

Home mortgage

 

45,452

3.8

%

 

45,987

3.8

%

 

49,155

4.0

%

 

52,031

4.1

%

 

57,773

4.6

%

Consumer

 

616

0.1

%

 

1,074

0.1

%

 

1,049

0.1

%

 

6,260

0.5

%

 

4,839

0.4

%

Gross loans held-for-investment

 

1,196,101

99.6

%

 

1,196,058

99.6

%

 

1,217,062

99.5

%

 

1,279,714

99.6

%

 

1,255,784

99.6

%

 
Deferred loan fees/costs, net

 

5,129

0.4

%

 

5,179

0.4

%

 

5,805

0.5

%

 

5,564

0.4

%

 

4,806

0.4

%

Loans held-for-investment

$

1,201,230

100.0

%

$

1,201,237

100.0

%

$

1,222,867

100.0

%

$

1,285,278

100.0

%

$

1,260,590

100.0

%

 
Loans held-for-sale

$

219,355

$

215,083

$

243,753

$

230,431

$

186,438

Total loans receivable

$

1,420,585

$

1,416,320

$

1,466,620

$

1,515,709

$

1,447,028

FIVE-QUARTER SBA LOAN PRODUCTIONS/SALES DATA (Unaudited) - Table 7
(Dollars in thousands)
 
Three Months Ended

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

 

 

2022

 

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

$

215,083

 

$

243,753

 

$

230,431

 

$

186,438

 

$

141,104

 

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

 

16,260

 

 

18,273

 

 

16,890

 

 

45,184

 

 

49,922

 

SBA loans sold during the quarter/year

 

(9,245

)

 

(42,437

)

 

-

 

 

-

 

 

-

 

SBA loans principal paydown/payoff, net of advance

 

(2,743

)

 

(4,506

)

 

(3,568

)

 

(1,191

)

 

(4,588

)

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

$

219,355

 

$

215,083

 

$

243,753

 

$

230,431

 

$

186,438

 

 
Gain on sale of SBA loans

$

419

 

$

1,952

 

$

-

 

$

-

 

$

-

 

Premium on sale (weighted average)

 

8.3

%

 

6.8

%

 

-

 

 

-

 

 

-

 

 
SBA loan production

$

24,270

 

$

24,013

 

$

21,719

 

$

60,746

 

$

69,234

 

FIVE QUARTER SBA SERVICING ASSETS AND SERVICING FEES (Unaudited) - Table 8
(Dollars in thousands)
 
Three Months Ended

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

 

 

2022

 

 
 
SBA servicing assets @ beginning of the quarter/year

$

8,426

 

$

8,528

 

$

9,232

 

$

10,158

 

$

10,996

 

 
Newly added SBA servicing assets from SBA loans sold

 

182

 

 

806

 

 

-

 

 

-

 

 

-

 

Regular quarterly/annual servicing assets amortization

 

(371

)

 

(379

)

 

(403

)

 

(434

)

 

(471

)

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

 

(364

)

 

(529

)

 

(301

)

 

(492

)

 

(367

)

 

Subtotal before impairment

 

7,873

 

 

8,426

 

 

8,528

 

 

9,232

 

 

10,158

 

 
Reversal of valuation allowance on servicing assets

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 
SBA servicing assets @ the end of the quarter/year

$

7,873

 

$

8,426

 

$

8,528

 

$

9,232

 

$

10,158

 

FIVE-QUARTER DEPOSIT COMPONENTS (Unaudited) - Table 9
(Dollars in thousands)
 
September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022
Balance % Balance % Balance % Balance % Balance %
 
Noninterest-bearing demand

$

406,033

26.2

%

$

426,333

28.0

%

$

428,559

27.9

%

$

451,651

29.4

%

$

562,051

36.7

%

Interest-bearing demand

 

6,395

0.4

%

 

9,056

0.6

%

 

10,883

0.7

%

 

8,878

0.6

%

 

10,268

0.7

%

NOW & MMDA

 

227,283

14.7

%

 

210,429

13.8

%

 

211,793

13.8

%

 

274,521

17.9

%

 

313,719

20.5

%

Savings

 

78,969

5.1

%

 

62,324

4.1

%

 

62,188

4.0

%

 

52,845

3.4

%

 

66,673

4.3

%

TCDs of $250K and under

 

312,704

20.2

%

 

298,520

19.6

%

 

294,074

19.1

%

 

278,952

18.1

%

 

246,886

16.1

%

TCDs of $250K over

 

373,345

24.1

%

 

368,262

24.2

%

 

367,167

23.9

%

 

320,386

20.8

%

 

242,700

15.8

%

Wholesale TCDs

 

144,561

9.3

%

 

147,487

9.7

%

 

162,649

10.6

%

 

151,017

9.8

%

 

91,017

5.9

%

Total Deposits

$

1,549,290

100.0

%

$

1,522,411

100.0

%

$

1,537,313

100.0

%

$

1,538,250

100.0

%

$

1,533,314

100.0

%

 

Recap:

 

Noninterest-bearing demand

$

406,033

26.2

%

$

426,333

28.0

%

$

428,559

27.9

%

$

451,651

29.4

%

$

562,051

36.7

%

Interest-bearing demand

 

6,395

0.4

%

 

9,056

0.6

%

 

10,883

0.7

%

 

8,878

0.6

%

 

10,268

0.7

%

NOW & MMDA

 

227,283

14.7

%

 

210,429

13.8

%

 

211,793

13.8

%

 

274,521

17.8

%

 

313,719

20.5

%

Savings

 

78,969

5.1

%

 

62,324

4.1

%

 

62,188

4.0

%

 

52,845

3.5

%

 

66,673

4.3

%

TCDs of $250K and under

 

312,704

20.2

%

 

298,520

19.6

%

 

294,074

19.1

%

 

278,952

18.1

%

 

246,886

16.1

%

Core Deposits

 

1,031,384

66.6

%

 

1,006,662

66.1

%

 

1,007,497

65.5

%

 

1,066,847

69.4

%

 

1,199,597

78.3

%

 

TCDs of $250K over

 

373,345

24.1

%

 

368,262

24.2

%

 

367,167

23.9

%

 

320,386

20.8

%

 

242,700

15.8

%

Wholesale TCDs

 

144,561

9.3

%

 

147,487

9.7

%

 

162,649

10.6

%

 

151,017

9.8

%

 

91,017

5.9

%

Noncore Deposits

 

517,906

33.4

%

 

515,749

33.9

%

 

529,816

34.5

%

 

471,403

30.6

%

 

333,717

21.7

%

Total Deposits

$

1,549,290

100.0

%

$

1,522,411

100.0

%

$

1,537,313

100.0

%

$

1,538,250

100.0

%

$

1,533,314

100.0

%

FIVE-QUARTER SELECTED LOAN AND ASSET QUALITY HIGHLIGHTS (Unaudited) - Table 10
(Dollars in thousands)
 

3rd Qtr.

 

2nd Qtr.

 

1st Qtr.

 

4th Qtr.

 

3rd Qtr.

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

 

 

2022

 

Allowance for Credit Losses
Balance at beginning of period

$

15,626

 

$

15,627

 

$

15,525

 

$

15,602

 

$

14,739

 

CECL transition provision

 

-

 

 

-

 

 

250

 

 

-

 

 

-

 

Provision for credit losses

 

-

 

 

-

 

 

-

 

 

-

 

 

910

 

Charge-offs

 

(350

)

 

(11

)

 

(159

)

 

(90

)

 

(89

)

Recoveries

 

8

 

 

10

 

 

11

 

 

13

 

 

42

 

Balance at the end of period

$

15,284

 

$

15,626

 

$

15,627

 

$

15,525

 

$

15,602

 

 
Nonperforming Assets:¹
Over 90 days still accruing

$

2

 

$

39

 

$

-

 

$

6,006

 

$

-

 

Nonaccrual loans

 

616

 

 

645

 

 

636

 

 

801

 

 

690

 

Total nonperforming loans

 

618

 

 

684

 

 

636

 

 

6,807

 

 

690

 

 
Other real estate owned

$

55

 

 

-

 

 

-

 

 

-

 

 

-

 

Total nonperforming assets

$

673

 

$

684

 

$

636

 

$

6,807

 

$

690

 

 
Classified Assets:¹
Substandard

$

10,105

 

$

10,491

 

$

7,673

 

$

8,165

 

$

9,146

 

Doubtful

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Loss
Total classified loans

$

10,105

 

$

10,491

 

$

7,673

 

$

8,165

 

$

9,146

 

 
Other real estate owned

$

55

 

 

-

 

 

-

 

 

-

 

 

-

 

Total classified assets

$

10,160

 

$

10,491

 

$

7,673

 

$

8,165

 

$

9,146

 

 
Performing TDR loans:¹

$

6,948

 

$

7,220

 

$

4,332

 

$

4,471

 

$

4,797

 

 
Delinquent Loans:¹
Loans 30-89 days past due

$

10,620

 

$

4,420

 

$

3,551

 

$

381

 

$

3,936

 

90 days or more past due and still accruing

 

2

 

 

39

 

 

-

 

 

6,006

 

 

-

 

Nonaccrual

 

616

 

 

645

 

 

636

 

 

801

 

 

690

 

Total delinquent loans

$

11,238

 

$

5,104

 

$

4,187

 

$

7,188

 

$

4,626

 

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

 

0.10

%

 

0.00

%

 

0.04

%

 

0.02

%

 

0.01

%

Nonaccrual loans to loans held-for-investment

 

0.05

%

 

0.05

%

 

0.05

%

 

0.06

%

 

0.05

%

Nonperforming loans to loans held-for-investment

 

0.05

%

 

0.06

%

 

0.05

%

 

0.53

%

 

0.05

%

Nonperforming assets to total assets

 

0.04

%

 

0.04

%

 

0.03

%

 

0.38

%

 

0.04

%

Classified loans to loans held-for-investment

 

0.84

%

 

0.87

%

 

0.63

%

 

0.64

%

 

0.73

%

Classified loans to Tier 1 and ACL

 

4.18

%

 

4.44

%

 

3.35

%

 

3.67

%

 

4.24

%

Classified assets to total assets

 

0.55

%

 

0.58

%

 

0.42

%

 

0.45

%

 

0.51

%

Classified assets to Tier 1 and ACL

 

4.20

%

 

4.44

%

 

3.35

%

 

3.67

%

 

4.24

%

ACL to loans held-for-investment

 

1.27

%

 

1.30

%

 

1.28

%

 

1.21

%

 

1.24

%

ACL to nonaccrual loans

 

2481.17

%

 

2422.64

%

 

2457.08

%

 

1938.20

%

 

2261.16

%

ACL to nonperforming loans

 

2473.14

%

 

2284.50

%

 

2457.08

%

 

228.07

%

 

2261.16

%

ACL to nonperforming assets

 

2271.03

%

 

2284.50

%

 

2457.08

%

 

228.07

%

 

2261.16

%

Texas ratio³

 

0.28

%

 

0.29

%

 

0.28

%

 

3.06

%

 

0.32

%

 
1 Net of SBA guaranteed balance
2 Includes loans held-for-sale
3 Nonperforming assets divided by tangible common equity and ACL
FIVE-QUARTER CAPITAL RATIOS (Unaudited) - Table 11
 
Well

Capitalized
Adequately

Capitalized

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

Regulatory BASEL III

 

 

 

 

 

 

 

 

 

Requirement Fully Phased In

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

 

 

2022

 

 
Leverage ratio
Company

N/A

N/A

 

12.53

%

 

12.23

%

 

11.86

%

 

11.71

%

 

11.25

%

Bank

5.00%

4.00%

 

12.50

%

 

12.20

%

 

11.82

%

 

11.67

%

 

11.15

%

Common equity tier 1 risk-based capital ratio

 

 

Company

N/A

N/A

 

17.61

%

 

17.08

%

 

16.15

%

 

14.92

%

 

14.82

%

Bank

6.50%

7.00%

 

17.58

%

 

17.03

%

 

16.10

%

 

14.87

%

 

14.70

%

Tier 1 risk-based capital ratio

 

 

Company

N/A

N/A

 

17.61

%

 

17.08

%

 

16.15

%

 

14.92

%

 

14.82

%

Bank

8.00%

8.50%

 

17.57

%

 

17.03

%

 

16.10

%

 

14.87

%

 

14.70

%

Total risk-based capital ratio

 

 

Company

N/A

N/A

 

18.83

%

 

18.32

%

 

17.37

%

 

16.08

%

 

16.02

%

Bank

10.00%

10.50%

 

18.79

%

 

18.27

%

 

17.31

%

 

16.03

%

 

15.89

%

 
Tangible common equity/total assets

 

12.19

%

 

12.15

%

 

11.75

%

 

11.44

%

 

11.14

%

Tangible common equity per share

$

21.39

 

$

20.85

 

$

20.18

 

$

19.59

 

$

18.95

 

FIVE-QUARTER MARGIN ANALYSIS (Unaudited) -Table 12
(Dollars in thousands)
 
Three Months Ended
September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022
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 Receivable¹

$

1,417,148

 

$

24,734

6.92

%

$

1,444,608

 

$

24,661

6.85

%

$

1,502,078

 

$

24,379

6.58

%

$

1,473,100

 

$

22,407

6.03

%

$

1,413,632

 

$

19,299

5.42

%

Investment securities²

 

64,587

 

 

577

3.54

%

 

67,958

 

 

595

3.51

%

 

70,146

 

 

577

3.34

%

 

73,371

 

 

552

2.98

%

 

77,304

 

 

543

2.79

%

Interest-earning deposits at the FRB and other banks

 

293,081

 

 

3,994

5.41

%

 

258,236

 

 

3,296

5.12

%

 

190,692

 

 

2,178

4.63

%

 

180,358

 

 

1,666

3.66

%

 

246,955

 

 

1,398

2.25

%

Other earning assets

 

11,011

 

 

196

7.06

%

 

10,825

 

 

163

6.04

%

 

10,121

 

 

164

6.57

%

 

10,121

 

 

169

6.62

%

 

10,121

 

 

145

5.68

%

Total interest-earning assets²

 

1,785,827

 

 

29,501

6.55

%

 

1,781,627

 

 

28,715

6.46

%

 

1,773,037

 

 

27,298

6.24

%

 

1,736,950

 

 

24,794

5.66

%

 

1,748,012

 

 

21,385

4.85

%

 
NONINTEREST-EARNING ASSETS
Cash and due from banks

 

13,045

 

 

12,792

 

 

14,262

 

 

15,632

 

 

17,429

 

Other noninterest-earning assets

 

33,331

 

 

34,060

 

 

36,643

 

 

38,529

 

 

40,251

 

Total noninterest-earning assets

 

46,376

 

 

46,852

 

 

50,905

 

 

54,161

 

 

57,680

 

 
Less: Allowance for credit losses

 

(15,622

)

 

(15,627

)

 

(15,552

)

 

(15,581

)

 

(14,756

)

 
TOTAL ASSETS

$

1,816,581

 

$

1,812,852

 

$

1,808,390

 

$

1,775,530

 

$

1,790,936

 

 
INTEREST-BEARING DEPOSITS
Interest-bearing demand

$

12,347

 

$

6

0.19

%

$

14,522

 

$

7

0.19

%

$

18,021

 

$

9

0.20

%

$

20,352

 

$

10

0.19

%

$

23,461

 

$

8

0.14

%

Money market

 

211,152

 

 

1,907

3.58

%

 

192,872

 

 

1,414

2.94

%

 

231,865

 

 

1,469

2.57

%

 

288,611

 

 

1,433

1.97

%

 

316,964

 

 

894

1.12

%

Savings

 

70,579

 

 

494

2.78

%

 

63,786

 

 

324

2.04

%

 

55,576

 

 

164

1.20

%

 

61,152

 

 

96

0.62

%

 

71,519

 

 

85

0.47

%

Time deposits

 

820,335

 

 

8,916

4.31

%

 

839,198

 

 

8,068

3.86

%

 

797,072

 

 

6,410

3.26

%

 

625,823

 

 

3,020

1.91

%

 

556,919

 

 

1,401

1.00

%

Total interest-bearing deposits

 

1,114,413

 

 

11,323

4.03

%

 

1,110,378

 

 

9,813

3.54

%

 

1,102,534

 

 

8,052

2.96

%

 

995,938

 

 

4,559

1.82

%

 

968,863

 

 

2,388

0.98

%

 
Borrowings

 

50,001

 

 

119

0.94

%

 

50,000

 

 

117

0.94

%

 

50,000

 

 

116

0.94

%

 

50,001

 

 

118

0.94

%

 

50,001

 

 

119

0.94

%

Total interest-bearing liabilities

 

1,164,414

 

 

11,442

3.90

%

 

1,160,378

 

 

9,930

3.43

%

 

1,152,534

 

 

8,168

2.87

%

 

1,045,939

 

 

4,677

1.77

%

 

1,018,864

 

 

2,507

0.98

%

 
Noninterest-bearing deposits

 

397,791

 

 

411,432

 

 

425,190

 

 

507,719

 

 

555,291

 

Other liabilities

 

27,519

 

 

20,934

 

 

16,947

 

 

14,732

 

 

14,596

 

 
Stockholders' equity

 

226,857

 

 

220,108

 

 

213,719

 

 

207,140

 

 

202,185

 

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$

1,816,581

 

$

1,812,852

 

$

1,808,390

 

$

1,775,530

 

$

1,790,936

 

 
Net interest income²

$

18,059

$

18,785

$

19,130

$

20,117

$

18,878

 
Net interest spread

2.65

%

3.03

%

3.37

%

3.89

%

3.87

%

 
Effect of noninterest-bearing sources

1.36

%

1.20

%

1.01

%

0.70

%

0.41

%

 
Net interest margin²

4.01

%

4.23

%

4.38

%

4.59

%

4.28

%

 
 
Cost of deposits

$

1,512,204

 

$

11,323

2.97

%

$

1,521,810

 

$

9,813

2.59

%

$

1,527,724

 

$

8,052

2.14

%

$

1,503,657

 

$

4,559

1.20

%

$

1,524,154

 

$

2,388

0.62

%

 
Cost of funds

$

1,562,205

 

$

11,442

2.91

%

$

1,571,810

 

$

9,930

2.53

%

$

1,577,724

 

$

8,168

2.10

%

$

1,553,658

 

$

4,677

1.19

%

$

1,574,155

 

$

2,507

0.63

%

 
¹ Loan held-for-investment, plus 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
September 30, 2023 June 30,2023 March 31, 2023 December 31, 2022 September 30, 2022
Amount Yield Amount Yield Amount Yield Amount Yield Amount Yield
 
Contractual yield