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CBB Bancorp, Inc. Reports Third Quarter 2021 Financial Results

October 28, 2021 - 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 2021 of $7.9 million, or $0.75 per diluted share, an increase of 25.0%, compared to $6.3 million, or $0.61 per diluted share, in the prior quarter and 171.5% compared to $2.9 million, or $0.28 per diluted share, in the same period last year.

Overall Results

The acquisition of Ohana Pacific Bank was completed as of July 1, 2021, contributing to the Company’s growth in total assets to $1.9 billion, a $296.2 million or 18.4% increase from the June 30, 2021 level.

Net income for third quarter 2021 was positively affected by continuing strong performance in SBA loan originations and sales, as well as declining costs of deposits. The Company’s return on average assets for third quarter 2021 was 1.73% compared to 1.70% for second quarter 2021 and 0.85% for third quarter 2020. The Company’s return on average equity for third quarter 2021 was 17.87%, compared to 14.91% for second quarter 2021 and 7.43% for third quarter 2020. The Company’s net interest margin for third quarter 2021 was 3.62%, compared to 3.75% for second quarter 2021 and 3.20% for third quarter 2020. The efficiency ratio for third quarter 2021 was 49.0%, compared to 52.2% for second quarter 2021 and 58.8% for third quarter 2020.

Joanne Kim, President and CEO, commented, “We are pleased to announce record quarterly earnings for the third consecutive quarter. With the successful completion of the merger with Ohana Pacific Bank, we look forward to further growth in the remainder of the year in all of our markets, including our operations in Hawaii.”

Net Interest Income and Margin

Net Interest Income

Net interest income for third quarter 2021 was $16.1 million, an increase of $2.5 million, or 18.7%, from second quarter 2021, and an increase of $5.4 million, or 51.1%, from third quarter 2020. The increase in net interest income was due to the acquisition of Ohana Pacific Bank, in addition to the benefit of the decline in cost of funds as the Bank continues to aggressively reprice certificates of deposit as they mature.

Net Interest Margin

Our net interest margin for third quarter 2021 was 3.62% compared to 3.75% for second quarter 2021 and 3.20% for third quarter 2020. Our cost of funds for third quarter 2021 decreased to 0.33% from 0.42% for second quarter 2021 and 0.85% for third quarter 2020.

Provision for Loan Losses:

The Company made no provision for loan losses for third quarter 2021 or the second quarter of 2021, compared to $1.6 million for third quarter 2020. No provision was required during the current quarter due to the absence of charge-offs, and continuing signs of an improving economy. See Table 10 for additional information and trends.

Noninterest Income:

Noninterest income for third quarter 2021 was $5.5 million, compared to $5.0 million for second quarter 2021 and $3.0 million for third quarter 2020. The largest contributor to noninterest income continues to be gains on sales of loans. Sales of SBA loans were $42.0 million with an average premium percentage received of 11.5% during the third quarter of 2021, compared with SBA loan sales of $42.2 million with an average premium percentage received of 11.9% during the second quarter of 2021 and SBA loan sales of $24.9 million with an average premium percentage received of 9.8% during the third quarter of 2020.

Noninterest Expense:

Noninterest expense for third quarter 2021 was $10.6 million, compared to $9.7 million for second quarter 2021 and $8.0 million for third quarter 2020. Included in the third quarter 2021 noninterest expense is approximately $913 thousand in general and administrative expense directly related to the operation of the newly acquired Ohana Pacific Division in Hawaii.

Income Taxes:

The Company’ s effective tax rate for third quarter 2021 was 28.6% compared to 28.9% for second quarter 2021 and 27.9% for third quarter 2020.

Balance Sheet:

Investment Securities:

Investment securities were $86.4 million at September 30, 2021, an increase of $4.1 million from June 30, 2021 and a decrease of $2.3 million from September 30, 2020. The increase in the third quarter of 2021 is due to $5.7 million of securities acquired in the Ohana Pacific Bank merger. The remaining changes were due to principal paydowns. There were no portfolio purchases in third quarter 2021, or in second quarter 2021 or third quarter 2020.

Loans Receivable:

Loans receivable (including loans held for sale) at September 30, 2021 was $1.4 billion, an increase of $162.3 million, or 13.2%, from loans receivable at June 30, 2021, and an increase of $326.6 million, or 30.6%, from loans receivable at September 30, 2020. Included in the total loans at September 30, 2021 are $149.2 million in loans that were acquired from Ohana Pacific Bank at July 1, 2021.

Loan payment deferments to our commercial borrowers under the CARES Act have declined since the first round of deferments that began during the second quarter of 2020. As of September 30, 2021, 5 loans totaling $29.7 million remain on modified payment terms, unchanged from the level of such loans at June 30, 2021 and down from $298.7 million of such loans at their peak at June 30, 2020.

Our weighted average loan-to-value ratio of commercial real estate loans was 72.6% at September 30, 2021. Excluding SBA loans, our weighted average loan-to-value ratio of CRE loans was 55.6%. For additional information, please go to www.cbb-bank.com under tab “About Us” and select “Investors Relations” to see 3Q 2021 Overview and COVID-19 update presentation.

Paycheck Protection Program (PPP):

PPP loans totaled $63.0 million at September 30, 2021. Net unearned fees on PPP loans as of September 30, 2021 was $2.1 million, which fees are being accreted to income based on a two-year contractual maturity. The SBA approved $31.5 million in PPP loan forgiveness applications processed for our PPP loans in third quarter 2021.

Allowance for Loan Losses and Asset Quality:

Our allowance for loan losses at September 30, 2021 was $15.0 million, or 1.19% of portfolio loans, compared to $14.9 million, or 1.32% of portfolio loans, at June 30 2021 and compared to $13.6 million, or 1.35% of portfolio loans, at September 30, 2020. Excluding PPP loans of $63.0 million, which are government guaranteed, the allowance for loan losses at September 30, 2021 was 1.26% of total loans, compared to 1.42% and 1.48%, respectively, at June 30 2021 and September 30, 2020. The allowance for loan losses as a percentage of total loans declined during the third quarter of 2021 because the loans which were acquired from Ohana Pacific Bank have been recorded at market value and have no allowance associated with them. Non-performing loans declined to $768 thousand at September 30, 2021, down from $1.3 million at June 30, 2021 and $4.1 million at September 30 2020. 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 1900%. For additional information, please go to www.cbb-bank.com under tab “About Us” and select “Investors Relations” to see 3Q 2021 Overview and COVID-19 update presentation.

SBA Loans Held for Sale:

SBA loans held for sale at September 30, 2021 were $136.4 million, compared to $96.6 million at June 30 2021 and $53.8 million at September 30, 2020. 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 $1.7 billion at September 30, 2021, up $287.4 million, or 20.8%, from June 30 2021 and up $564.7 million, or 51.3%, from September 30, 2020. Noninterest-bearing demand deposits (“DDAs”) increased $98.2 million, or 17.2%, to $670.5 million at September 30, 2021 from June 30 2021 and increased $307.1 million, or 84.5%, from September 30, 2020. Total DDAs including interest-bearing demand deposits were 40.9% of total deposits at September 30, 2021, compared to 41.5% at June 30 2021 and 33.0% at September 30, 2020. NOW and MMDA accounts increased $85.1 million, or 29.2%, to $376.5 million at September 30, 2021 from June 30 2021 and increased $146.8 million, or 63.9%, from September 30, 2020. Time deposits increased $58.9 million, or 12.4%, at September 30, 2021 from June 30 2021 and increased $85.9 million, or 19.2%, from September 30, 2020. Time deposits at September 30, 2021 were $532.6 million, or 32.0% of total deposits, compared to $473.7 million, or 34.4% of total deposits, at June 30, 2021, and $446.7 million, or 40.6% of total deposits, at September 30, 2020. The primary cause of the increase in deposit balances during the third quarter of 2021 was the completion of the merger with Ohana Pacific Bank during the quarter. Included in the total deposits at September 30, 2021 are $202.2 million in deposits that were acquired from Ohana Pacific Bank at July 1, 2021.

Borrowings:

Borrowings at September 30, 2021 consisted of $50.0 million of Federal Home Loan Bank of San Francisco (“FHLB-SF”) advances, unchanged from the balance at June 30, 2021. Borrowings at September 30, 2020 were $128.7 million and consisted of $70.0 million of FHLB-SF advances and $58.7 million of FRB PPP Liquidity Facility.

Capital:

Stockholders’ equity was $178.3 million at September 30, 2021, representing an increase of $7.1 million, or 4.1%, over stockholders’ equity of $171.2 million at June 30, 2021. Tangible book value per share at September 30, 2021 was $17.08, compared with $16.66 at June 30, 2021, an increase of $0.42 per share or 2.5%.

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, as shown on Table 11 in this press release. Our Common Equity Tier 1 risked-based capital at September 30, 2021 was 13.61% at the Company level and 13.59% 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 September 30, 2021, the Bank has ten full-service branches in Los Angeles and Orange Counties in California, and 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 3Q 2021 Overview.

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 information technology security systems; 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 Nine Months Ended
September 30, June 30, $ % September 30, $ % September 30, September 30, $ %

 

2021

 

 

 

2021

 

 

Change

Change

 

 

2020

 

 

Change

Change

 

 

2021

 

 

 

2020

 

 

Change

Change

 
Interest income

$

17,437

 

$

14,923

 

$

2,514

 

16.8

%

$

13,212

 

$

4,225

 

32.0

%

$

46,732

 

$

40,891

 

$

5,841

 

14.3

%

Interest expense

 

1,337

 

 

1,358

 

 

(21

)

(1.5

%)

 

2,558

 

 

(1,221

)

(47.7

%)

 

4,228

 

 

9,881

 

 

(5,653

)

(57.2

%)

Net interest income

 

16,100

 

 

13,565

 

 

2,535

 

18.7

%

 

10,654

 

 

5,446

 

51.1

%

 

42,504

 

 

31,010

 

 

11,494

 

37.1

%

 
Provision for loan losses

 

-

 

 

-

 

 

-

 

-

 

 

1,600

 

 

(1,600

)

(100.0

%)

 

500

 

 

3,900

 

 

(3,400

)

(87.2

%)

Net interest income after provision for loan losses

 

16,100

 

 

13,565

 

 

2,535

 

18.7

%

 

9,054

 

 

7,046

 

77.8

%

 

42,004

 

 

27,110

 

 

14,894

 

54.9

%

 
Gain on sale of loans

 

4,305

 

 

3,988

 

 

317

 

7.9

%

 

1,662

 

 

2,643

 

159.0

%

 

10,749

 

 

3,110

 

 

7,639

 

245.6

%

Gain (loss) on sale of OREO

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

3

 

 

(3

)

(100.0

%)

SBA servicing fee income, net

 

698

 

 

622

 

 

76

 

12.2

%

 

948

 

 

(250

)

(26.4

%)

 

2,167

 

 

2,058

 

 

109

 

5.3

%

Reversal of valuation allowance on servicing assets

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

-

 

 

-

 

-

 

Service charges and other income

 

540

 

 

395

 

 

145

 

36.7

%

 

385

 

 

155

 

40.3

%

 

1,314

 

 

1,032

 

 

282

 

27.3

%

Noninterest income

 

5,543

 

 

5,005

 

 

538

 

10.7

%

 

2,995

 

 

2,548

 

85.1

%

 

14,230

 

 

6,203

 

 

8,027

 

129.4

%

 
Salaries and employee benefits

 

6,500

 

 

6,000

 

 

500

 

8.3

%

 

4,948

 

 

1,552

 

31.4

%

 

17,353

 

 

15,267

 

 

2,086

 

13.7

%

Occupancy and equipment

 

1,067

 

 

945

 

 

122

 

12.9

%

 

938

 

 

129

 

13.8

%

 

2,991

 

 

2,827

 

 

164

 

5.8

%

Marketing expense

 

287

 

 

309

 

 

(22

)

(7.1

%)

 

265

 

 

22

 

8.3

%

 

883

 

 

1,002

 

 

(119

)

(11.9

%)

Professional expense

 

495

 

 

491

 

 

4

 

0.8

%

 

503

 

 

(8

)

(1.6

%)

 

1,441

 

 

1,438

 

 

3

 

0.2

%

Merger related expense

 

450

 

 

600

 

 

(150

)

(25.0

%)

 

-

 

 

450

 

100.0

%

 

1,731

 

 

-

 

 

1,731

 

100.0

%

Other expenses

 

1,807

 

 

1,356

 

 

451

 

33.3

%

 

1,367

 

 

440

 

32.2

%

 

4,463

 

 

3,929

 

 

534

 

13.6

%

Noninterest expense

 

10,606

 

 

9,701

 

 

905

 

9.3

%

 

8,021

 

 

2,585

 

32.2

%

 

28,862

 

 

24,463

 

 

4,399

 

18.0

%

 
Income before income tax expense

 

11,037

 

 

8,869

 

 

2,168

 

24.4

%

 

4,028

 

 

7,009

 

174.0

%

 

27,372

 

 

8,850

 

 

18,522

 

209.3

%

 
Income tax expense

 

3,156

 

 

2,566

 

 

590

 

23.0

%

 

1,125

 

 

2,031

 

180.5

%

 

7,854

 

 

2,683

 

 

5,171

 

192.7

%

 
Net income

$

7,881

 

$

6,303

 

$

1,578

 

25.0

%

$

2,903

 

$

4,978

 

171.5

%

$

19,518

 

$

6,167

 

$

13,351

 

216.5

%

 
Effective tax rate

 

28.6

%

 

28.9

%

 

(0.3

%)

(1.2

%)

 

27.9

%

 

0.7

%

2.4

%

 

28.7

%

 

30.3

%

 

(1.6

%)

(5.4

%)

 
Outstanding number of shares

 

10,284,962

 

 

10,279,962

 

 

5,000

 

0.0

%

 

10,247,292

 

 

37,670

 

0.4

%

 

10,284,962

 

 

10,247,292

 

 

37,670

 

0.4

%

 
Weighted average shares for basic EPS

 

10,279,962

 

 

10,262,956

 

 

17,006

 

0.2

%

 

10,244,037

 

 

35,925

 

0.4

%

 

10,263,523

 

 

10,235,197

 

 

28,326

 

0.3

%

Weighted average shares for diluted EPS

 

10,427,632

 

 

10,392,427

 

 

35,205

 

0.3

%

 

10,273,148

 

 

154,484

 

1.5

%

 

10,373,645

 

 

10,287,659

 

 

85,986

 

0.8

%

 
Basic EPS

$

0.77

 

$

0.61

 

$

0.16

 

26.2

%

$

0.28

 

$

0.49

 

175.0

%

$

1.90

 

$

0.60

 

$

1.30

 

216.7

%

Diluted EPS

$

0.75

 

$

0.61

 

$

0.14

 

23.0

%

$

0.28

 

$

0.47

 

167.9

%

$

1.88

 

$

0.60

 

$

1.28

 

213.3

%

 
Return on average assets

 

1.73

%

 

1.70

%

 

0.03

%

1.8

%

 

0.85

%

 

0.88

%

103.5

%

 

1.68

%

 

0.65

%

 

1.03

%

158.5

%

Return on average equity

 

17.87

%

 

14.91

%

 

2.96

%

19.9

%

 

7.43

%

 

10.44

%

140.5

%

 

15.42

%

 

5.39

%

 

10.03

%

186.1

%

 
Efficiency ratio¹

 

49.00

%

 

52.24

%

 

(3.24

%)

(6.2

%)

 

58.77

%

 

(9.8

%)

(16.6

%)

 

50.87

%

 

65.74

%

 

(14.87

%)

(22.6

%)

Yield on interest-earning assets²

 

3.92

%

 

4.12

%

 

(0.20

%)

(4.9

%)

 

3.96

%

 

(0.04

%)

(1.0

%)

 

4.11

%

 

4.46

%

 

(0.35

%)

(7.8

%)

Cost of funds

 

0.33

%

 

0.42

%

 

(0.09

%)

(21.4

%)

 

0.85

%

 

(0.52

%)

(61.2

%)

 

0.41

%

 

1.21

%

 

(0.80

%)

(66.1

%)

Net interest margin²

 

3.62

%

 

3.75

%

 

(0.13

%)

(3.5

%)

 

3.20

%

 

0.42

%

13.1

%

 

3.74

%

 

3.38

%

 

0.36

%

10.7

%

 
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)
 
September 30, June 30, $ % September 30, $ %

 

2021

 

 

 

2021

 

 

Change

Change

 

 

2020

 

 

Change

Change

ASSETS
Cash and due from banks

$

11,621

 

$

10,509

 

$

1,112

 

10.6

%

$

8,030

 

$

3,591

 

44.7

%

Interest-earning deposits at the FRB and other banks

 

386,087

 

 

240,932

 

 

145,155

 

60.2

%

 

212,279

 

 

173,808

 

81.9

%

Investment securities¹

 

86,440

 

 

82,354

 

 

4,086

 

5.0

%

 

88,784

 

 

(2,344

)

(2.6

%)

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

 

136,394

 

 

96,554

 

 

39,840

 

41.3

%

 

53,755

 

 

82,639

 

153.7

%

 
Loans receivable

 

1,255,814

 

 

1,133,371

 

 

122,443

 

10.8

%

 

1,011,867

 

 

243,947

 

24.1

%

Allowance for loan losses

 

(15,000

)

 

(14,908

)

 

(92

)

(0.6

%)

 

(13,614

)

 

(1,386

)

(10.2

%)

Loans receivable, net

 

1,240,814

 

 

1,118,463

 

 

122,351

 

10.9

%

 

998,253

 

 

242,561

 

24.3

%

 
OREO

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

-

 

-

 

Restricted stock investments

 

8,850

 

 

8,850

 

 

-

 

-

 

 

8,196

 

 

654

 

8.0

%

Servicing assets

 

10,392

 

 

10,189

 

 

203

 

2.0

%

 

9,043

 

 

1,349

 

14.9

%

Goodwill

 

2,269

 

 

-

 

 

2,269

 

100.0

%

 

-

 

 

2,269

 

100.0

%

Intangible assets

 

375

 

 

-

 

 

375

 

100.0

%

 

-

 

 

375

 

100.0

%

Other assets

 

25,859

 

 

45,071

 

 

(19,212

)

(42.6

%)

 

21,064

 

 

4,795

 

22.8

%

Total assets

$

1,909,101

 

$

1,612,922

 

$

296,179

 

18.4

%

$

1,399,404

 

$

509,697

 

36.4

%

 
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing

$

670,489

 

$

572,284

 

$

98,205

 

17.2

%

$

363,350

 

$

307,139

 

84.5

%

Interest-bearing

 

995,574

 

 

806,397

 

 

189,177

 

23.5

%

 

738,040

 

 

257,534

 

34.9

%

Total deposits

 

1,666,063

 

 

1,378,681

 

 

287,382

 

20.8

%

 

1,101,390

 

 

564,673

 

51.3

%

 
FHLB advances and other borrowing

 

50,000

 

 

50,000

 

 

-

 

-

 

 

128,671

 

 

(78,671

)

(61.1

%)

Other liabilities

 

14,719

 

 

13,026

 

 

1,693

 

13.0

%

 

13,295

 

 

1,424

 

10.7

%

Total liabilities

 

1,730,782

 

 

1,441,707

 

 

289,075

 

20.1

%

 

1,243,356

 

 

487,426

 

39.2

%

 
Stockholders' Equity

 

178,319

 

 

171,215

 

 

7,104

 

4.1

%

 

156,048

 

 

22,271

 

14.3

%

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$

1,909,101

 

$

1,612,922

 

$

296,179

 

18.4

%

$

1,399,404

 

$

509,697

 

36.4

%

 
CAPITAL RATIOS
Leverage ratio
Company

 

9.61

%

 

11.35

%

 

(1.74

%)

(15.3

%)

 

11.76

%

 

(2.15

%)

(18.3

%)

Bank

 

9.60

%

 

11.33

%

 

(1.73

%)

(15.3

%)

 

11.72

%

 

(2.12

%)

(18.1

%)

Common equity tier 1 risk-based capital ratio
Company

 

13.61

%

 

14.39

%

 

(0.78

%)

(5.4

%)

 

15.24

%

 

(1.63

%)

(10.7

%)

Bank

 

13.59

%

 

14.37

%

 

(0.78

%)

(5.4

%)

 

15.20

%

 

(1.61

%)

(10.6

%)

Tier 1 risk-based capital ratio
Company

 

13.61

%

 

14.39

%

 

(0.78

%)

(5.4

%)

 

15.24

%

 

(1.63

%)

(10.7

%)

Bank

 

13.59

%

 

14.37

%

 

(0.78

%)

(5.4

%)

 

15.20

%

 

(1.61

%)

(10.6

%)

Total risk-based capital ratio
Company

 

14.86

%

 

15.64

%

 

(0.78

%)

(5.0

%)

 

16.50

%

 

(1.64

%)

(10.0

%)

Bank

 

14.84

%

 

15.62

%

 

(0.78

%)

(5.0

%)

 

16.45

%

 

(1.61

%)

(9.8

%)

Tangibel common equity per share

$

17.30

 

$

16.66

 

$

0.64

 

3.8

%

$

15.23

 

$

2.07

 

13.6

%

Loan-to-Deposit (LTD) ratio

 

75.38

%

 

82.21

%

 

(6.83

%)

(8.3

%)

 

91.87

%

 

(16.49

%)

(17.9

%)

Nonperforming assets

$

768

 

$

1,339

 

$

(571

)

(42.6

%)

$

4,111

 

$

(3,343

)

(81.3

%)

Nonperforming assets as a % of loans receivable

 

0.06

%

 

0.12

%

 

(0.06

%)

-50.0

%

 

0.41

%

 

(0.35

%)

(85.4

%)

ALLL as a % of loans receivable

 

1.19

%

 

1.32

%

 

(0.13

%)

(9.8

%)

 

1.35

%

 

(0.16

%)

(11.9

%)

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

 

1.26

%

 

1.42

%

 

(0.16

%)

(11.3

%)

 

1.48

%

 

(0.22

%)

(14.9

%)

 
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,

 

2021

 

 

 

2021

 

 

 

2021

 

 

 

2020

 

 

 

2020

 

 
Interest income

$

17,437

 

$

14,923

 

$

14,372

 

$

13,613

 

$

13,212

 

Interest expense

 

1,337

 

 

1,358

 

 

1,533

 

 

1,830

 

 

2,558

 

Net interest income

 

16,100

 

 

13,565

 

 

12,839

 

 

11,783

 

 

10,654

 

 
Provision for loan losses

 

-

 

 

-

 

 

500

 

 

1,600

 

 

1,600

 

Net interest income after provision for loan losses

 

16,100

 

 

13,565

 

 

12,339

 

 

10,183

 

 

9,054

 

 
Gain on sale of loans

 

4,305

 

 

3,988

 

 

2,456

 

 

1,484

 

 

1,662

 

Gain (loss) on sale of OREO

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

SBA servicing fee income, net

 

698

 

 

622

 

 

847

 

 

701

 

 

948

 

Reversal of valuation allowance on servicing assets

 

-

 

 

-

 

 

-

 

 

894

 

 

-

 

Service charges and other income

 

540

 

 

395

 

 

379

 

 

364

 

 

385

 

Noninterest income

 

5,543

 

 

5,005

 

 

3,682

 

 

3,443

 

 

2,995

 

 
Salaries and employee benefits

 

6,500

 

 

6,000

 

 

4,853

 

 

5,477

 

 

4,948

 

Occupancy and equipment

 

1,067

 

 

945

 

 

979

 

 

936

 

 

938

 

Marketing expense

 

287

 

 

309

 

 

287

 

 

133

 

 

265

 

Professional expense

 

495

 

 

491

 

 

455

 

 

478

 

 

503

 

Merger related expense

 

450

 

 

600

 

 

681

 

 

40

 

 

58

 

Other expenses

 

1,807

 

 

1,356

 

 

1,300

 

 

1,329

 

 

1,309

 

Noninterest expense

 

10,606

 

 

9,701

 

 

8,555

 

 

8,393

 

 

8,021

 

 
Income before income tax expense

 

11,037

 

 

8,869

 

 

7,466

 

 

5,233

 

 

4,028

 

 
Income tax expense

 

3,156

 

 

2,566

 

 

2,132

 

 

1,519

 

 

1,125

 

 
Net income

$

7,881

 

$

6,303

 

$

5,334

 

$

3,714

 

$

2,903

 

 
Effective tax rate

 

28.6

%

 

28.9

%

 

28.6

%

 

29.0

%

 

27.9

%

 
Outstanding number of shares

 

10,284,962

 

 

10,279,962

 

 

10,247,292

 

 

10,247,292

 

 

10,247,292

 

 
Weighted average shares for basic EPS

 

10,279,962

 

 

10,262,956

 

 

10,247,292

 

 

10,247,292

 

 

10,244,037

 

Weighted average shares for diluted EPS

 

10,427,632

 

 

10,392,427

 

 

10,300,518

 

 

10,285,410

 

 

10,273,148

 

 
Basic EPS

$

0.77

 

$

0.61

 

$

0.52

 

$

0.36

 

$

0.28

 

Diluted EPS

$

0.75

 

$

0.61

 

$

0.52

 

$

0.36

 

$

0.28

 

 
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,

 

2021

 

 

 

2021

 

 

 

2021

 

 

 

2020

 

 

 

2020

 

 
Salaries and benefits

$

6,500

 

$

6,000

 

$

4,853

 

$

5,477

 

$

4,948

 

FTE at the end of period

 

200

 

 

183

 

 

186

 

 

183

 

 

179

 

Average FTE during the period

 

202

 

 

182

 

 

187

 

 

184

 

 

181

 

Salaries and benefits/average FTE¹

$

127

 

$

132

 

$

105

 

$

118

 

$

109

 

Salaries and benefits/average assets¹

 

1.43

%

 

1.62

%

 

1.44

%

 

1.58

%

 

1.45

%

Noninterest expense/average assets¹

 

2.33

%

 

2.62

%

 

2.34

%

 

2.42

%

 

2.34

%

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

 

2021

 

 

 

2021

 

 

 

2021

 

 

 

2020

 

 

 

2020

 

ASSETS
Cash and due from banks

$

11,621

 

$

10,509

 

$

9,215

 

$

8,750

 

$

8,030

 

Interest-earning deposits at the FRB and other banks

 

386,087

 

 

240,932

 

 

129,713

 

 

153,908

 

 

212,279

 

Investment securities¹

 

86,440

 

 

82,354

 

 

83,409

 

 

85,914

 

 

88,784

 

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

 

136,394

 

 

96,554

 

 

76,066

 

 

59,077

 

 

53,755

 

 
Loans receivable

 

1,255,814

 

 

1,133,371

 

 

1,113,629

 

 

1,043,662

 

 

1,011,867

 

Allowance for loan losses

 

(15,000

)

 

(14,908

)

 

(14,888

)

 

(14,366

)

 

(13,614

)

Loans receivable, net

 

1,240,814

 

 

1,118,463

 

 

1,098,741

 

 

1,029,296

 

 

998,253

 

 
OREO

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Restricted stock investments

 

8,850

 

 

8,850

 

 

8,196

 

 

8,196

 

 

8,196

 

Servicing assets

 

10,392

 

 

10,189

 

 

10,000

 

 

9,873

 

 

9,043

 

Goodwill

 

2,269

 

 

-

 

 

-

 

 

-

 

 

-

 

Intangible assets

 

375

 

 

-

 

 

-

 

 

-

 

 

-

 

Other assets

 

25,859

 

 

45,071

 

 

21,431

 

 

20,233

 

 

21,064

 

Total assets

$

1,909,101

 

$

1,612,922

 

$

1,436,771

 

$

1,375,247

 

$

1,399,404

 

 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing

$

670,489

 

$

572,284

 

$

408,738

 

$

335,219

 

$

363,350

 

Interest-bearing

 

995,574

 

 

806,397

 

 

782,778

 

 

763,906

 

 

738,040

 

Total deposits

 

1,666,063

 

 

1,378,681

 

 

1,099,125

 

 

1,101,390

 

 
FHLB advances

 

50,000

 

 

50,000

 

 

65,000

 

 

105,000

 

 

128,671

 

Other liabilities

 

14,719

 

 

13,026

 

 

15,170

 

 

11,145

 

 

13,295

 

Total liabilities

 

1,730,782

 

 

1,441,707

 

 

1,271,686

 

 

1,215,270

 

 

1,243,356

 

 
Stockholders' Equity

 

178,319

 

 

171,215

 

 

165,085

 

 

159,977

 

 

156,048

 

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$

1,909,101

 

$

1,612,922

 

$

1,436,771

 

$

1,375,247

 

$

1,399,404

 

 
¹ Includes AFS and HTM
FIVE-QUARTER LOANS RECEIVABLE COMPONENTS (Unaudited) - Table 6
(Dollars in thousands)
 
September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020
Balance % Balance % Balance % Balance % Balance %
 
Construction

$

21,725

1.7

%

$

18,753

1.7

%

$

15,858

1.4

%

$

13,685

1.3

%

$

18,236

1.8

%

Commercial real estate

 

971,387

77.4

%

 

893,700

78.9

%

 

855,861

76.9

%

 

820,355

78.6

%

 

779,062

77.0

%

Commercial and industrial

 

198,217

15.8

%

 

217,350

19.2

%

 

237,865

21.4

%

 

205,883

19.7

%

 

211,298

20.9

%

Home mortgage

 

60,075

4.8

%

 

-

-

 

 

-

-

 

 

-

-

 

 

-

-

 

Consumer

 

2,185

0.2

%

 

2,236

0.2

%

 

3,504

0.3

%

 

2,439

0.2

%

 

2,751

0.3

%

Gross loans

 

1,253,589

99.8

%

 

1,132,039

99.9

%

 

1,113,088

100.0

%

 

1,042,362

99.9

%

 

1,011,347

99.9

%

 
Net deferred loan fees/costs

 

2,225

0.2

%

 

1,332

0.1

%

 

541

0.0

%

 

1,300

0.1

%

 

520

0.1

%

Loans receivable

$

1,255,814

100.0

%

$

1,133,371

100.0

%

$

1,113,629

100.0

%

$

1,043,662

100.0

%

$

1,011,867

100.0

%

 
Loans held-for-sale

$

136,394

$

96,554

$

76,066

$

59,077

$

53,755

Loans receivable, including loans held-for-sale

$

1,392,208

$

1,229,925

$

1,189,695

$

1,102,739

$

1,065,622

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,

 

2021

 

 

 

2021

 

 

 

2021

 

 

 

2020

 

 

 

2020

 

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

$

96,554

 

$

76,066

 

$

59,077

 

$

53,755

 

$

32,264

 

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

 

82,303

 

 

62,864

 

 

48,152

 

 

26,837

 

 

46,731

 

SBA loans sold during the quarter/year

 

(42,019

)

 

(42,163

)

 

(30,238

)

 

(20,382

)

 

(24,866

)

SBA loans principal payment, net of advance

 

(444

)

 

(213

)

 

(925

)

 

(1,133

)

 

(374

)

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

$

136,394

 

$

96,554

 

$

76,066

 

$

59,077

 

$

53,755

 

 
Gain on sale of SBA loans

$

4,305

 

$

3,988

 

$

2,456

 

$

1,484

 

$

1,662

 

Premium on sale (weighted average)

 

11.5

%

 

11.9

%

 

10.9

%

 

10.7

%

 

9.8

%

 
SBA loan production

$

93,986

 

$

78,058

 

$

123,762

 

$

37,116

 

$

59,957

 

 

Non-PPP loans

 

93,986

 

 

75,065

 

 

71,204

 

 

37,116

 

 

59,009

 

PPP loans

 

-

 

 

2,994

 

 

52,558

 

 

-

 

 

948

 

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,

 

2021

 

 

 

2021

 

 

 

2020

 

 

 

2020

 

 

 

2020

 

 
 
SBA servicing assets @ beginning of the quarter/year

$

10,189

 

$

10,000

 

$

9,873

 

$

9,043

 

$

8,944

 

 
Newly added SBA servicing assets from SBA loans sold

 

920

 

 

897

 

 

635

 

 

441

 

 

523

 

Regular quarterly/annual servicing assets amortization

 

(421

)

 

(422

)

 

(358

)

 

(392

)

 

(384

)

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

 

(296

)

 

(286

)

 

(150

)

 

(113

)

 

(40

)

 
Subtotal before impairment

 

10,392

 

 

10,189

 

 

10,000

 

 

8,979

 

 

9,043

 

 
Reversal of valuation allowance on servicing assets

 

-

 

 

-

 

 

894

 

 

-

 

 
SBA servicing assets @ the end of the quarter/year

$

10,392

 

$

10,189

 

$

10,000

 

$

9,873

 

$

9,043

 

FIVE-QUARTER DEPOSIT COMPONENTS (Unaudited) - Table 9
(Dollars in thousands)
 
September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020
Balance % Balance % Balance % Balance % Balance %
 
Noninterest-bearing demand

$

670,489

40.2

%

$

572,284

41.5

%

$

408,738

34.3

%

$

335,219

30.5

%

$

363,350

33.0

%

Interest-bearing demand

 

10,904

0.7

%

 

-

-

 

 

-

-

 

 

-

-

 

 

-

-

 

NOW & MMDA

 

376,549

22.6

%

 

291,437

21.1

%

 

270,531

22.7

%

 

260,374

23.7

%

 

229,730

20.9

%

Savings

 

75,497

4.5

%

 

41,284

3.0

%

 

46,280

3.9

%

 

51,659

4.7

%

 

61,631

5.6

%

TCDs of $250K and under

 

264,130

15.9

%

 

219,174

15.9

%

 

226,611

19.0

%

 

232,192

21.1

%

 

230,230

20.9

%

TCDs of $250K over

 

177,477

10.7

%

 

158,485

11.5

%

 

151,094

12.7

%

 

150,143

13.7

%

 

146,911

13.3

%

Wholesale TCDs

 

91,017

5.5

%

 

96,017

7.0

%

 

88,262

7.4

%

 

69,538

6.3

%

 

69,538

6.3

%

Total Deposits

$

1,666,063

100.0

%

$

1,378,681

100.0

%

$

1,191,516

100.0

%

$

1,099,125

100.0

%

$

1,101,390

100.0

%

 
Recap:
Noninterest-bearing demand

$

670,489

40.2

%

$

572,284

41.5

%

$

408,738

34.3

%

$

335,219

30.5

%

$

363,350

33.0

%

Interest-bearing demand

 

10,904

0.7

%

 

-

-

 

 

-

-

 

 

-

-

 

 

-

-

 

NOW & MMDA

 

376,549

22.6

%

 

291,437

21.1

%

 

270,531

22.7

%

 

260,374

23.7

%

 

229,730

20.9

%

Savings

 

75,497

4.5

%

 

41,284

3.0

%

 

46,280

3.9

%

 

51,659

4.7

%

 

61,631

5.6

%

TCDs of $250K and under

 

264,130

15.9

%

 

219,174

15.9

%

 

226,611

19.0

%

 

232,192

21.1

%

 

230,230

20.9

%

Core Deposits

 

1,397,569

83.9

%

 

1,124,179

81.5

%

 

952,160

79.9

%

 

879,444

80.0

%

 

884,941

80.3

%

 
TCDs of $250K over

 

177,477

10.7

%

 

158,485

11.5

%

 

151,094

12.7

%

 

150,143

13.7

%

 

146,911

13.3

%

Wholesale TCDs

 

91,017

5.5

%

 

96,017

7.0

%

 

88,262

7.4

%

 

69,538

6.3

%

 

69,538

6.3

%

Noncore Deposits

 

268,494

16.1

%

 

254,502

18.5

%

 

239,356

20.1

%

 

219,681

20.0

%

 

216,449

19.7

%

Total Deposits

$

1,666,063

100.0

%

$

1,378,681

100.0

%

$

1,191,516

100.0

%

$

1,099,125

100.0

%

$

1,101,390

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.

 

2021

 

 

 

2021

 

 

 

2021

 

 

 

2020

 

 

 

2020

 

Allowance for Loan Losses
Balance at beginning of period

$

14,908

 

$

14,888

 

$

14,366

 

$

13,614

 

$

12,283

 

Provision for loan losses

 

-

 

 

-

 

 

500

 

 

1,600

 

 

1,600

 

Charge-offs

 

-

 

 

-

 

 

(2

)

 

(907

)

 

(292

)

Recoveries

 

92

 

 

20

 

 

24

 

 

59

 

 

23

 

Balance at the end of period

$

15,000

 

$

14,908

 

$

14,888

 

$

14,366

 

$

13,614

 

 
Nonperforming Assets:¹
Over 90 days still accruing

$

-

 

$

-

 

$

-

 

$

2

 

$

200

 

Nonaccrual loans

 

768

 

 

1,339

 

 

1,347

 

 

2,359

 

 

3,911

 

Total nonperforming loans

 

768

 

 

1,339

 

 

1,347

 

 

2,361

 

 

4,111

 

 
Other real estate owned

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total nonperforming assets

$

768

 

$

1,339

 

$

1,347

 

$

2,361

 

$

4,111

 

 
Classified Assets:¹
Substandard

$

10,672

 

$

10,052

 

$

9,843

 

$

18,920

 

$

20,579

 

Doubtful

 

-

 

 

-

 

 

-

 

 

68

 

 

-

 

Loss

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total classified loans

$

10,672

 

$

10,052

 

$

9,843

 

$

18,988

 

$

20,579

 

 
Other real estate owned

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total classified assets

$

10,672

 

$

10,052

 

$

9,843

 

$

18,988

 

$

20,579

 

 
Performing TDR loans:

$

3,658

 

$

3,776

 

$

2,516

 

$

2,847

 

$

1,072

 

 
Delinquent Loans:¹
Loans 30-89 days past due

$

1,688

 

$

2,524

 

$

1,681

 

$

3,095

 

$

714

 

90 days or more past due and still accruing

 

-

 

 

-

 

 

-

 

 

2

 

 

200

 

Nonaccrual

 

768

 

 

1,339

 

 

1,347

 

 

2,359

 

 

3,911

 

Total delinquent loans

$

2,456

 

$

3,863

 

$

3,028

 

$

5,456

 

$

4,825

 

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

 

(0.03

%)

 

(0.01

%)

 

(0.01

%)

 

0.32

%

 

0.10

%

Nonaccrual loans to loans receivable

 

0.06

%

 

0.12

%

 

0.12

%

 

0.23

%

 

0.39

%

Nonperforming loans to loans receivable

 

0.06

%

 

0.12

%

 

0.12

%

 

0.23

%

 

0.41

%

Nonperforming assets to total assets

 

0.04

%

 

0.08

%

 

0.09

%

 

0.17

%

 

0.29

%

Classified loans to loans receivable

 

0.85

%

 

0.89

%

 

0.88

%

 

1.82

%

 

2.03

%

Classified loans to Tier 1 and ALLL

 

5.53

%

 

5.40

%

 

5.47

%

 

10.89

%

 

12.13

%

Classified assets to total assets

 

0.56

%

 

0.62

%

 

0.69

%

 

1.38

%

 

1.47

%

Classified assets to Tier 1 and ALLL

 

5.53

%

 

5.40

%

 

5.47

%

 

10.89

%

 

12.13

%

ALLL to loans receivable

 

1.19

%

 

1.32

%

 

1.34

%

 

1.38

%

 

1.35

%

ALLL to loans receivable exc. SBA PPP loans

 

1.26

%

 

1.42

%

 

1.48

%

 

1.51

%

 

1.48

%

ALLL to nonaccrual loans

 

1953.13

%

 

1113.37

%

 

1105.27

%

 

608.99

%

 

348.10

%

ALLL to nonperforming loans

 

1953.13

%

 

1113.37

%

 

1105.27

%

 

608.47

%

 

331.16

%

ALLL to nonperforming assets

 

1953.13

%

 

1113.37

%

 

1105.27

%

 

608.47

%

 

331.16

%

Texas ratio ³

 

0.40

%

 

0.72

%

 

0.75

%

 

1.35

%

 

2.42

%

 
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
September 30, June 30, March 31, December 31, September 30,
Regulatory BASEL III
Requirement Fully Phased In

 

2021

 

 

 

2021

 

 

 

2021

 

 

 

2020

 

 

 

2020

 

 
Leverage ratio
Company

N/A

 

N/A

 

 

9.61

%

 

11.35

%

 

11.89

%

 

11.56

%

 

11.76

%

Bank

5.00

%

4.00

%

 

9.60

%

 

11.33

%

 

11.87

%

 

11.54

%

 

11.72

%

Common equity tier 1 risk-based capital ratio
Company

N/A

 

N/A

 

 

13.61

%

 

14.39

%

 

15.00

%

 

15.01

%

 

15.24

%

Bank

6.50

%

7.00

%

 

13.59

%

 

14.37

%

 

14.98

%

 

14.97

%

 

15.20

%

Tier 1 risk-based capital ratio
Company

N/A

 

N/A

 

 

13.61

%

 

14.39

%

 

15.00

%

 

15.01

%

 

15.24

%

Bank

8.00

%

8.50

%

 

13.59

%

 

14.37

%

 

14.98

%

 

14.97

%

 

15.20

%

Total risk-based capital ratio
Company

N/A

 

N/A

 

 

14.86

%

 

15.64

%

 

16.25

%

 

16.26

%

 

16.50

%

Bank

10.00

%

10.50

%

 

14.84

%

 

15.62

%

 

16.23

%

 

16.22

%

 

16.45

%

 
Tangible common equity/total assets

 

9.32

%

 

10.62

%

 

11.49

%

 

11.63

%

 

11.15

%

Tangibel common equity per share

$

17.30

 

$

16.66

 

$

16.11

 

$

15.61

 

$

15.23

 

FIVE-QUARTER MARGIN ANALYSIS (Unaudited) -Table 12
(Dollars in thousands)
 
Three Months Ended
September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020
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

$

1,390,851

 

$

16,800

4.79

%

$

1,195,908

 

$

14,338

4.81

%

$

1,138,134

 

$

13,837

4.93

%

$

1,066,368

 

$

13,045

4.87

%

$

1,046,678

 

$

12,650

4.81

%

Investment securities²

 

87,585

 

 

460

2.08

%

 

83,152

 

 

442

2.13

%

 

84,679

 

 

448

2.15

%

 

87,818

 

 

474

2.15

%

 

90,450

 

 

471

2.07

%

Interest-earning deposits at the FRB and other banks

 

282,512

 

 

112

0.16

%

 

168,677

 

 

54

0.13

%

 

108,127

 

 

36

0.14

%

 

191,703

 

 

59

0.12

%

 

186,678

 

 

58

0.12

%

Other earning assets

 

8,925

 

 

116

5.16

%

 

8,737

 

 

135

6.20

%

 

8,196

 

 

97

4.80

%

 

8,196

 

 

81

3.93

%

 

8,196

 

 

80

3.88

%

Total interest-earning assets ²

 

1,769,873

 

 

17,488

3.92

%

 

1,456,474

 

 

14,969

4.12

%

 

1,339,136

 

 

14,418

4.37

%

 

1,354,085

 

 

13,659

4.01

%

 

1,332,002

 

 

13,259

3.96

%

 
NONINTEREST-EARNING ASSETS
Cash and due from banks

 

13,079

 

 

10,752

 

 

10,025

 

 

10,234

 

 

10,685

 

Other noninterest-earning assets

 

36,548

 

 

32,002

 

 

31,156

 

 

28,903

 

 

31,216

 

Total noninterest-earning assets

 

49,627

 

 

42,754

 

 

41,181

 

 

39,137

 

 

41,901

 

 
Less: Allowance for loan losses

 

(14,958

)

 

(14,899

)

 

(14,381

)

 

(13,505

)

 

(12,293

)

TOTAL ASSETS

$

1,804,542

 

$

1,484,329

 

$

1,365,936

 

$

1,379,717

 

$

1,361,610

 

 
INTEREST-BEARING DEPOSITS
Interest-bearing demand

$

36,670

 

$

4

0.04

%

$

13,373

 

$

2

0.06

%

$

15,813

 

$

2

0.05

%

$

11,444

 

$

4

0.14

%

$

11,248

 

$

4

0.14

%

Money market

 

312,606

 

 

388

0.49

%

 

263,845

 

 

352

0.54

%

 

265,856

 

 

366

0.56

%

 

240,913

 

 

360

0.59

%

 

200,878

 

 

404

0.80

%

Savings

 

74,266

 

 

71

0.38

%

 

43,433

 

 

55

0.51

%

 

48,284

 

 

60

0.50

%

 

55,756

 

 

77

0.55

%

 

67,880

 

 

154

0.90

%

Time deposits

 

542,901

 

 

756

0.55

%

 

469,000

 

 

831

0.71

%

 

451,347

 

 

975

0.88

%

 

447,839

 

 

1,236

1.10

%

 

452,950

 

 

1,790

1.57

%

Total interest-bearing deposits

 

966,443

 

 

1,219

0.50

%

 

789,651

 

 

1,240

0.63

%

 

781,300

 

 

1,403

0.73

%

 

755,952

 

 

1,677

0.88

%

 

732,956

 

 

2,352

1.28

%

 
Borrowings

 

50,000

 

 

118

0.94

%

 

51,539

 

 

118

0.92

%

 

65,667

 

 

130

0.80

%

 

88,645

 

 

153

0.69

%

 

147,149

 

 

206

0.56

%

Total interest-bearing liabilities

 

1,016,443

 

 

1,337

0.52

%

 

841,190

 

 

1,358

0.65

%

 

846,967

 

 

1,533

0.73

%

 

844,597

 

 

1,830

0.86

%

 

880,105

 

 

2,558

1.16

%

 
Noninterest-bearing deposits

 

597,056

 

 

459,695

 

 

343,904

 

 

363,937

 

 

313,370

 

Other liabilities

 

16,046

 

 

13,906

 

 

11,942

 

 

12,623

 

 

12,750

 

 
Stockholders' equity

 

174,997

 

 

169,538

 

 

163,123

 

 

158,560

 

 

155,385

 

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$

1,804,542

 

$

1,484,329

 

$

1,365,936

 

$

1,379,717

 

$

1,361,610

 

 
Net interest income²

$

16,151

$

13,611

$

12,885

$

11,829

$

10,701

 
Net interest spread

3.40

%

3.47

%

3.64

%

3.15

%

2.80

%

 
Effect of noninterest-bearing sources

0.22

%

0.28

%

0.26

%

0.33

%

0.40

%

 
Net interest margin²

3.62

%

3.75

%

3.90

%

3.48

%

3.20

%

 
 
Cost of deposits

$

1,563,499

 

$

1,219

0.31

%

$

1,249,346

 

$

1,240

0.40

%

$

1,125,204

 

$

1,403

0.51

%

$

1,119,889

 

$

1,677

0.60

%

$

1,046,326

 

$

2,352

0.89

%

 
Cost of funds

$

1,613,499

 

$

1,337

0.33

%

$

1,300,885

 

$

1,358

0.42

%

$

1,190,871

 

$

1,533

0.52

%

$

1,208,534

 

$

1,830

0.60

%

$

1,193,475

 

$

2,558

0.85

%

 
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
September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020
Amount Yield Amount Yield Amount Yield Amount Yield Amount Yield
 
Contractual yield

$

15,032

4.29

%

$

12,670

4.25

%

$

12,148

4.33

%

$

11,727

4.38

%

$

11,522

4.38

%

SBA discount accretion

 

1,038

0.29

%

 

1,027

0.34

%

 

738

0.26

%

 

730

0.27

%

 

615

0.23

%

Prepayment penalties & late fees

 

41

0.01

%

 

89

0.03

%

 

121

0.04

%

 

177

0.07

%

 

221

0.09

%

Amortization of net deferred costs

 

689

0.20

%

 

552

0.19

%

 

830

0.30

%

 

411

0.15

%

 

292

0.11

%

As reported yield on loans

$

16,800

4.79

%

$

14,338

4.81

%

$

13,837

4.93

%

$

13,045

4.87

%

$

12,650

4.81

%

MARGIN ANALYSIS (Unaudited) - Table 14
(Dollars in thousands)
 
Nine Months Ended
September 30,2021 September 30, 2020
Avg Balance Interest Yield Avg Balance Interest Yield
Number of Days in the Period
INTEREST-EARNING ASSETS
Loans ¹

$

1,242,557

 

$

44,975

4.84

%

$

1,002,303

 

$

38,847

5.18

%

Investment securities²

 

85,149

 

 

1,350

2.12

%

 

92,070

 

 

1,598

2.32

%

Interest-earning deposits at the FRB and other banks

 

187,078

 

 

202

0.14

%

 

126,835

 

 

291

0.31

%

Other earning assets

 

8,622

 

 

348

5.40

%

 

8,195

 

 

295

4.81

%

Total interest-earning assets ²

 

1,523,406

 

 

46,875

4.11

%

 

1,229,403

 

 

41,031

4.46

%