Le Lézard
Classified in: Business, Covid-19 virus
Subjects: EARNINGS, Conference Call, Webcast

CBB Bancorp, Inc. Reports Second Quarter 2021 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 second quarter 2021 of $6.3 million, or $0.61 per diluted share, an increase of 18.2%, compared to $5.3 million, or $0.52 per diluted share, in the prior quarter and 281.5% compared to $1.7 million, or $0.16 per diluted share, in the same period last year.

Overall Results

Net income for second quarter 2021 was positively affected by improving credit quality and continued balance sheet growth. The Company's return on average assets for second quarter 2021 was 1.70% compared to 1.58% for first quarter 2021 and 0.52% for second quarter 2020. Its return on average equity for second quarter 2021 was 14.91%, compared to 13.26% for first quarter 2021 and 4.36% for second quarter 2020. The Company's net interest margin for second quarter 2021 was 3.75%, compared to 3.90% for first quarter 2021 and 3.17% for second quarter 2020. Its efficiency ratio for second quarter 2021 was 52.24%, compared to 51.78% for first quarter 2021 and 66.02% for second quarter 2020.

Joanne Kim, President and CEO, commented, "We are pleased to announce record quarterly earnings for the second consecutive quarter. With positive trends in our balance sheet growth and asset quality, we look forward to further growth in the second half of the year. We are excited about the completion of the acquisition of Ohana Pacific Bank on July 1, 2021 and the opportunities this Hawaii base of operations will provide."

Net Interest Income and Margin

Net Interest Income

Net interest income for second quarter 2021 was $13.6 million, an increase of $726 thousand, or 5.7%, from first quarter 2021, and an increase of $3.7 million, or 37.5%, from second quarter 2020. The increase in net interest income was driven by loan growth, as well as our continuing to aggressively reduce deposit rates and wholesale borrowing costs, while strategically shifting our deposit mix to lower-cost core deposits.

Net Interest Margin

Our net interest margin for second quarter 2021 was 3.75% compared to 3.90% for first quarter 2021 and 3.17% for second quarter 2020. The decrease in net interest margin compared to first quarter 2021 was due to a substantial increase in due from bank balances in the quarter, which reduced the average yield on interest earning assets. The larger than usual due from bank balances were due in part to the all-cash acquisition of Ohana Pacific Bank that was still pending as of June 30, 2021. The lower yield on earning assets was partially offset by a downward repricing of our time deposits and growth in our demand deposits. Our cost of funds for second quarter 2021 decreased to 0.42% from 0.52% for first quarter 2021 and 1.20% for second quarter 2020.

Provision for Loan Losses:

The Company made no provision for loan losses for second quarter 2021, compared to $500 thousand for first quarter 2021 and $1.6 million for second 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 second quarter 2021 was $5.0 million, compared to $3.7 million for first quarter 2021 and $1.5 million for second quarter 2020. The increase in noninterest income in second quarter 2021 was primarily the result of increased gains on sales of loans. Sales of SBA loans were $42.2 million with an average premium percentage received of 11.9% during the second quarter of 2021, compared with SBA loan sales of $30.2 million with an average premium percentage received of 10.9% during the first quarter of 2021 and SBA loan sales of $9.8 million with an average premium percentage received of 8.6% during the second quarter of 2020. The increased gain on sale of SBA loans was partially offset by a decline in SBA servicing fees during the current quarter due to a higher level of payoffs during the period.

Noninterest Expense:

Noninterest expense for second quarter 2021 was $9.7 million, compared to $8.6 million for first quarter 2021 and $7.5 million for second quarter 2020. Salaries and employee benefits increased by $1.1 million to $6 million in second quarter 2021, compared to $4.9 million in the prior quarter, due to the effect of higher incentive payments made related to loan originations and a decrease in the amount of compensation deferred as loan origination costs.

Income Taxes:

The Company' s effective tax rate for second quarter 2021 was 28.9% compared to 28.6% for first quarter 2021 and 27.0% for second quarter 2020.

Balance Sheet:

Investment Securities:

Investment securities were $82.4 million at June 30, 2021, a decrease of $1.1 million from March 31, 2021 and $8.7 million from June 30, 2020. The decreases were due to principal paydowns. There were no portfolio additions in second quarter 2021, or in the first quarter 2021 or second quarter 2020.

Loans Receivable:

Loans receivable (including loans held for sale) at June 30, 2021 was $1.23 billion, an increase of $40.2 million, or 3.4%, from loans receivable at March 31, 2021, and an increase of $192.5 million, or 18.6%, from loans receivable at June 30, 2020.

Loan payment deferments to our commercial borrowers under the CARES Act have continued to decline since the first round of deferments that began during the second quarter of 2020. As of June 30, 2021, five loans totaling $29.7 million remain on modified payment terms. This is a decline from $50.4 million of such loans at March 31, 2021, and $298.7 million of such loans at June 30, 2020. No additional modification requests are currently in process.

Our weighted average loan-to-value ratio of commercial real estate loans was 72.4% at June 30, 2021. Excluding SBA loans, our weighted average loan-to-value of CRE loans was 55.9%. For additional information, please go to www.cbb-bank.com under tab "About Us" and select "Investors Relations" to see 2Q 2021 Overview and COVID-19 update presentation.

Paycheck Protection Program (PPP):

PPP loans totaled $85.4 million at June 30, 2021. Net unearned fees on PPP loans as of June 30, 2021 was $2.4 million, which fees are being accreted to income based on a two-year contractual maturity. The SBA approved $26.5 million in PPP loan forgiveness applications processed for our PPP loans in second quarter 2021.

Allowance for Loan Losses and Asset Quality:

Our allowance for loan losses at June 30, 2021 was $14.9 million, or 1.32% of portfolio loans, compared to $14.9 million, or 1.34% of portfolio loans, at March 31 2021 and compared to $12.3 million, or 1.22% of portfolio loans, at June 30, 2020. Excluding PPP loans of $85.4 million, which are government guaranteed, the allowance for loan losses at June 30, 2021 was 1.42%, compared to 1.48% and 1.34%, respectively, at March 31 2021 and June 30, 2020. Non-performing loans remained unchanged at $1.3 million over the quarter. 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 1,100%. For additional information, please go to www.cbb-bank.com under tab "About Us" and select "Investors Relations" to see 2Q 2021 Overview and COVID-19 update presentation.

SBA Loans Held for Sale:

SBA loans held for sale at June 30, 2021 were $96.6 million, compared to $76.1 million at March 31 2021 and $32.3 million at June 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 $1.38 billion at June 30, 2021, up $187.2 million, or 15.7% from March 31 2021 and up $351.0 million, or 34.2%, from June 30, 2020. Noninterest-bearing demand deposits ("DDAs") increased $163.5 million, or 40.0%, to $572.3 million at June 30, 2021 from March 31 2021 and increased $277.3 million, or 94.0%, from June 30, 2020. DDAs were 41.5% of total deposits at June 30, 2021, compared to 34.3% at March 31 2021 and 28.7% at June 30, 2020. NOW and MMDA accounts increased $20.9 million, or 7.7%, to $291.4 million at June 30, 2021 from March 31 2021 and increased $98.5 million, or 51.0%, from June 30, 2020. Time deposits increased $7.7 thousand, or 1.7%, at June 30, 2021 from March 31 2021 and increased $2.2 thousand, or 0.5%, from June 30, 2020. Time deposits at June 30, 2021 were $473.7 million, or 34.4% of total deposits, compared to $466.0 million, or 39.1% of total deposits, at March 31, 2021, and $471.5 million, or 45.9% of total deposits, at June 30, 2020. As noted above, we are focused on increasing demand deposits and reducing our cost of funds.

Borrowings:

Borrowings at June 30, 2021 consisted of $50.0 million of Federal Home Loan Bank of San Francisco (FHLB-SF) advances, compared to $65.0 million of FHLB-SF advances at March 31, 2021. Borrowings at June 30, 2020 were $148.7 million and consisted of $90.0 million of FHLB-SF advances and $58.7 million of FRB PPP Liquidity Facility.

Capital:

Stockholders' equity was $171.2 million at June 30, 2021, representing an increase of $6.1 million, or 3.7%, over stockholders' equity of $165.1 million at March 31, 2021. Book value per share at June 30, 2021 was $16.66, compared with $16.11 at March 31, 2021, an increase of $0.55 per share or 3.4%.

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 June 30, 2021 was 14.58% at the Company level and 14.55% 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 July 31, 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 2Q 2021 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 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 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 Six Months Ended
June 30, March, 31 $ % June 30, $ % June 30, June 30, $ %

 

2021

 

 

 

2021

 

 

Change

Change

 

 

2020

 

 

Change

Change

 

 

2021

 

 

 

2020

 

 

Change

Change

 
Interest income

$

14,923

 

$

14,372

 

$

551

 

3.8

%

$

13,206

 

$

1,717

 

13.0

%

$

29,295

 

$

27,679

 

$

1,616

 

5.8

%

Interest expense

 

1,358

 

 

1,533

 

 

(175

)

(11.4

%)

 

3,342

 

 

(1,984

)

(59.4

%)

 

2,891

 

 

7,323

 

 

(4,432

)

(60.5

%)

Net interest income

 

13,565

 

 

12,839

 

 

726

 

5.7

%

 

9,864

 

 

3,701

 

37.5

%

 

26,404

 

 

20,356

 

 

6,048

 

29.7

%

 
Provision for loan losses

 

-

 

 

500

 

 

(500

)

(100.0

%)

 

1,600

 

 

(1,600

)

(100.0

%)

 

500

 

 

2,300

 

 

(1,800

)

(78.3

%)

Net interest income after provision for loan losses

 

13,565

 

 

12,339

 

 

1,226

 

9.9

%

 

8,264

 

 

5,301

 

64.1

%

 

25,904

 

 

18,056

 

 

7,848

 

43.5

%

 
Gain on sale of loans

 

3,988

 

 

2,456

 

 

1,532

 

62.4

%

 

509

 

 

3,479

 

683.5

%

 

6,444

 

 

1,448

 

 

4,996

 

345.0

%

Gain (loss) on sale of OREO

 

-

 

 

-

 

 

-

 

-

 

 

9

 

 

(9

)

(100.0

%)

 

-

 

 

3

 

 

(3

)

(100.0

%)

SBA servicing fee income, net

 

622

 

 

847

 

 

(225

)

(26.6

%)

 

738

 

 

(116

)

(15.7

%)

 

1,469

 

 

1,110

 

 

359

 

32.3

%

Reversal of valuation allowance on servicing assets

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

-

 

 

-

 

-

 

Service charges and other income

 

395

 

 

379

 

 

16

 

4.2

%

 

251

 

 

144

 

57.4

%

 

774

 

 

647

 

 

127

 

19.6

%

Noninterest income

 

5,005

 

 

3,682

 

 

1,323

 

35.9

%

 

1,507

 

 

3,498

 

232.1

%

 

8,687

 

 

3,208

 

 

5,479

 

170.8

%

 
Salaries and employee benefits

 

6,000

 

 

4,853

 

 

1,147

 

23.6

%

 

4,617

 

 

1,383

 

30.0

%

 

10,853

 

 

10,319

 

 

534

 

5.2

%

Occupancy and equipment

 

945

 

 

979

 

 

(34

)

(3.5

%)

 

943

 

 

2

 

0.2

%

 

1,924

 

 

1,889

 

 

35

 

1.9

%

Marketing expense

 

309

 

 

287

 

 

22

 

7.7

%

 

279

 

 

30

 

10.8

%

 

596

 

 

737

 

 

(141

)

(19.1

%)

Professional expense

 

491

 

 

455

 

 

36

 

7.9

%

 

500

 

 

(9

)

(1.8

%)

 

946

 

 

935

 

 

11

 

1.2

%

Merger related expense

 

600

 

 

681

 

 

(81

)

(11.9

%)

 

-

 

 

600

 

100.0

%

 

1,281

 

 

-

 

 

1,281

 

100.0

%

Other expenses

 

1,356

 

 

1,300

 

 

56

 

4.3

%

 

1,168

 

 

188

 

16.1

%

 

2,656

 

 

2,562

 

 

94

 

3.7

%

Noninterest expense

 

9,701

 

 

8,555

 

 

1,146

 

13.4

%

 

7,507

 

 

2,194

 

29.2

%

 

18,256

 

 

16,442

 

 

1,814

 

11.0

%

 
Income before income tax expense

 

8,869

 

 

7,466

 

 

1,403

 

18.8

%

 

2,264

 

 

6,605

 

291.7

%

 

16,335

 

 

4,822

 

 

11,513

 

238.8

%

 
Income tax expense

 

2,566

 

 

2,132

 

 

434

 

20.4

%

 

612

 

 

1,954

 

319.3

%

 

4,698

 

 

1,558

 

 

3,140

 

201.5

%

 
Net income

$

6,303

 

$

5,334

 

$

969

 

18.2

%

$

1,652

 

$

4,651

 

281.5

%

$

11,637

 

$

3,264

 

$

8,373

 

256.5

%

 
Effective tax rate

 

28.9

%

 

28.6

%

 

0.4

%

1.3

%

 

27.0

%

 

1.9

%

7.0

%

 

28.8

%

 

32.3

%

 

(3.5

%)

(11.0

%)

 
Outstanding number of shares

 

10,279,962

 

 

10,247,292

 

 

32,670

 

0.3

%

 

10,237,310

 

 

42,652

 

0.4

%

 

10,279,962

 

 

10,237,310

 

 

42,652

 

0.4

%

 
Weighted average shares for basic EPS

 

10,262,956

 

 

10,247,292

 

 

15,664

 

0.2

%

 

10,237,310

 

 

25,646

 

0.3

%

 

10,255,167

 

 

10,230,728

 

 

24,439

 

0.2

%

Weighted average shares for diluted EPS

 

10,392,427

 

 

10,300,518

 

 

91,909

 

0.9

%

 

10,276,637

 

 

115,790

 

1.1

%

 

10,346,516

 

 

10,302,184

 

 

44,332

 

0.4

%

 
Basic EPS

$

0.61

 

$

0.52

 

$

0.09

 

17.3

%

$

0.16

 

$

0.45

 

281.3

%

$

1.13

 

$

0.32

 

$

0.81

 

253.1

%

Diluted EPS

$

0.61

 

$

0.52

 

$

0.09

 

17.3

%

$

0.16

 

$

0.45

 

281.3

%

$

1.13

 

$

0.32

 

$

0.81

 

253.1

%

 
Return on average assets

 

1.70

%

 

1.58

%

 

0.12

%

7.6

%

 

0.52

%

 

1.18

%

226.9

%

 

1.65

%

 

0.54

%

 

1.11

%

205.6

%

Return on average equity

 

14.91

%

 

13.26

%

 

1.65

%

12.4

%

 

4.36

%

 

10.55

%

242.0

%

 

14.11

%

 

4.34

%

 

9.77

%

225.1

%

 
Efficiency ratio¹

 

52.24

%

 

51.78

%

 

0.46

%

0.9

%

 

66.02

%

 

(13.8

%)

(20.9

%)

 

52.02

%

 

69.78

%

 

(17.76

%)

(25.5

%)

Yield on interest-earning assets²

 

4.12

%

 

4.37

%

 

(0.25

%)

(5.7

%)

 

4.24

%

 

(0.12

%)

(2.8

%)

 

4.24

%

 

4.74

%

 

(0.50

%)

(10.5

%)

Cost of funds

 

0.42

%

 

0.52

%

 

(0.10

%)

(19.2

%)

 

1.20

%

 

(0.78

%)

(65.0

%)

 

0.47

%

 

1.42

%

 

(0.95

%)

(66.9

%)

Cost of funds exc. SBA PPP loan funding

 

0.42

%

 

0.54

%

 

(0.12

%)

(22.2

%)

 

1.25

%

 

(0.83

%)

(66.4

%)

 

0.48

%

 

1.45

%

 

(0.97

%)

(66.9

%)

Net interest margin²

 

3.75

%

 

3.90

%

 

(0.15

%)

(3.9

%)

 

3.17

%

 

0.58

%

18.3

%

 

3.82

%

 

3.49

%

 

0.33

%

9.5

%

Net interest margin exc. SBA PPP loans²

 

3.78

%

 

3.86

%

 

(0.08

%)

(2.1

%)

 

3.20

%

 

0.58

%

18.1

%

 

3.82

%

 

3.51

%

 

0.31

%

8.8

%

 
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)
 
June 30, March, 31 $ % June 30, $ %

 

2021

 

 

2021

 

Change Change

 

2020

 

Change Change
ASSETS
Cash and due from banks

$

10,509

 

$

9,215

 

$

1,294

 

14.0

%

$

9,043

 

$

1,466

 

16.2

%

Interest-earning deposits at the FRB and other banks

 

240,932

 

 

129,713

 

 

111,219

 

85.7

%

 

179,519

 

 

61,413

 

34.2

%

Investment securities¹

 

82,354

 

 

83,409

 

 

(1,055

)

(1.3

%)

 

91,091

 

 

(8,737

)

(9.6

%)

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

 

96,554

 

 

76,066

 

 

20,488

 

26.9

%

 

32,264

 

 

64,290

 

199.3

%

 
Loans receivable

 

1,133,371

 

 

1,113,629

 

 

19,742

 

1.8

%

 

1,005,128

 

 

128,243

 

12.8

%

Allowance for loan losses

 

(14,908

)

 

(14,888

)

 

(20

)

(0.1

%)

 

(12,283

)

 

(2,625

)

(21.4

%)

Loans receivable, net

 

1,118,463

 

 

1,098,741

 

 

19,722

 

1.8

%

 

992,845

 

 

125,618

 

12.7

%

 
OREO

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

-

 

-

 

Restricted stock investments

 

8,850

 

 

8,196

 

 

654

 

8.0

%

 

8,196

 

 

654

 

8.0

%

Servicing assets

 

10,189

 

 

10,000

 

 

189

 

1.9

%

 

8,944

 

 

1,245

 

13.9

%

Other assets

 

45,071

 

 

21,431

 

 

23,640

 

110.3

%

 

21,383

 

 

23,688

 

110.8

%

Total assets

$

1,612,922

 

$

1,436,771

 

$

176,151

 

12.3

%

$

1,343,285

 

$

269,637

 

20.1

%

 
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing

$

572,284

 

$

408,738

 

$

163,546

 

40.0

%

$

295,003

 

$

277,281

 

94.0

%

Interest-bearing

 

806,397

 

 

782,778

 

 

23,619

 

3.0

%

 

732,647

 

 

73,750

 

10.1

%

Total deposits

 

1,378,681

 

 

1,191,516

 

 

187,165

 

15.7

%

 

1,027,650

 

 

351,031

 

34.2

%

 
FHLB advances and other borrowing

 

50,000

 

 

65,000

 

 

(15,000

)

(23.1

%)

 

148,671

 

 

(98,671

)

(66.4

%)

Other liabilities

 

13,026

 

 

15,170

 

 

(2,144

)

(14.1

%)

 

14,208

 

 

(1,182

)

(8.3

%)

Total liabilities

 

1,441,707

 

 

1,271,686

 

 

170,021

 

13.4

%

 

1,190,529

 

 

251,178

 

21.1

%

 
Stockholders' Equity

 

171,215

 

 

165,085

 

 

6,130

 

3.7

%

 

152,756

 

 

18,459

 

12.1

%

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$

1,612,922

 

$

1,436,771

 

$

176,151

 

12.3

%

$

1,343,285

 

$

269,637

 

20.1

%

 
CAPITAL RATIOS
Leverage ratio
Company

 

11.35

%

 

11.89

%

 

(0.54

%)

(4.5

%)

 

11.98

%

 

(0.63

%)

(5.2

%)

Bank

 

11.33

%

 

11.87

%

 

(0.54

%)

(4.5

%)

 

11.94

%

 

(0.61

%)

(5.1

%)

Common equity tier 1 risk-based capital ratio
Company

 

14.39

%

 

15.00

%

 

(0.61

%)

(4.1

%)

 

15.23

%

 

(0.84

%)

(5.5

%)

Bank

 

14.37

%

 

14.98

%

 

(0.61

%)

(4.1

%)

 

15.18

%

 

(0.81

%)

(5.3

%)

Tier 1 risk-based capital ratio
Company

 

14.39

%

 

15.00

%

 

(0.61

%)

(4.1

%)

 

15.23

%

 

(0.84

%)

(5.5

%)

Bank

 

14.37

%

 

14.98

%

 

(0.61

%)

(4.1

%)

 

15.18

%

 

(0.81

%)

(5.3

%)

Total risk-based capital ratio
Company

 

15.64

%

 

16.25

%

 

(0.61

%)

(3.8

%)

 

16.48

%

 

(0.84

%)

(5.1

%)

Bank

 

15.62

%

 

16.23

%

 

(0.61

%)

(3.8

%)

 

16.43

%

 

(0.81

%)

(4.9

%)

Book value per share

$

16.66

 

$

16.11

 

$

0.55

 

3.4

%

$

14.92

 

$

1.74

 

11.7

%

Loan-to-Deposit (LTD) ratio

 

82.21

%

 

93.46

%

 

(11.25

%)

(12.0

%)

 

97.81

%

 

(15.60

%)

(15.9

%)

Nonperforming assets

$

1,339

 

$

1,347

 

$

(8

)

(0.6

%)

$

4,189

 

$

(2,850

)

(68.0

%)

Nonperforming assets as a % of loans receivable

 

0.12

%

 

0.12

%

 

-

 

-

 

 

0.42

%

 

(0.30

%)

(71.4

%)

ALLL as a % of loans receivable

 

1.32

%

 

1.34

%

 

(0.02

%)

(1.5

%)

 

1.22

%

 

0.10

%

8.2

%

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

 

1.42

%

 

1.48

%

 

(0.06

%)

(4.1

%)

 

1.34

%

 

0.08

%

6.0

%

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

 

2021

 

 

 

2021

 

 

 

2020

 

 

 

2020

 

 

 

2020

 

 
Interest income

$

14,923

 

$

14,372

 

$

13,613

 

$

13,212

 

$

13,206

 

Interest expense

 

1,358

 

 

1,533

 

 

1,830

 

 

2,558

 

 

3,342

 

Net interest income

 

13,565

 

 

12,839

 

 

11,783

 

 

10,654

 

 

9,864

 

 
Provision for loan losses

 

-

 

 

500

 

 

1,600

 

 

1,600

 

 

1,600

 

Net interest income after provision for loan losses

 

13,565

 

 

12,339

 

 

10,183

 

 

9,054

 

 

8,264

 

 
Gain on sale of loans

 

3,988

 

 

2,456

 

 

1,484

 

 

1,662

 

 

509

 

Gain (loss) on sale of OREO

 

-

 

 

-

 

 

-

 

 

-

 

 

9

 

SBA servicing fee income, net

 

622

 

 

847

 

 

701

 

 

948

 

 

738

 

Reversal of valuation allowance on servicing assets

 

-

 

 

-

 

 

894

 

 

-

 

 

-

 

Service charges and other income

 

395

 

 

379

 

 

364

 

 

385

 

 

251

 

Noninterest income

 

5,005

 

 

3,682

 

 

3,443

 

 

2,995

 

 

1,507

 

 
Salaries and employee benefits

 

6,000

 

 

4,853

 

 

5,477

 

 

4,948

 

 

4,617

 

Occupancy and equipment

 

945

 

 

979

 

 

936

 

 

938

 

 

943

 

Marketing expense

 

309

 

 

287

 

 

133

 

 

265

 

 

279

 

Professional expense

 

491

 

 

455

 

 

478

 

 

503

 

 

500

 

Merger related expense

 

600

 

 

681

 

 

40

 

 

58

 

 

-

 

Other expenses

 

1,356

 

 

1,300

 

 

1,329

 

 

1,309

 

 

1,168

 

Noninterest expense

 

9,701

 

 

8,555

 

 

8,393

 

 

8,021

 

 

7,507

 

 
Income before income tax expense

 

8,869

 

 

7,466

 

 

5,233

 

 

4,028

 

 

2,264

 

 
Income tax expense

 

2,566

 

 

2,132

 

 

1,519

 

 

1,125

 

 

612

 

 
Net income

$

6,303

 

$

5,334

 

$

3,714

 

$

2,903

 

$

1,652

 

 
Effective tax rate

 

28.9

%

 

28.6

%

 

29.0

%

 

27.9

%

 

27.0

%

 
Outstanding number of shares

 

10,279,962

 

 

10,247,292

 

 

10,247,292

 

 

10,247,292

 

 

10,237,310

 

 
Weighted average shares for basic EPS

 

10,262,956

 

 

10,247,292

 

 

10,247,292

 

 

10,244,037

 

 

10,237,310

 

Weighted average shares for diluted EPS

 

10,392,427

 

 

10,300,518

 

 

10,285,410

 

 

10,273,148

 

 

10,276,637

 

 
Basic EPS

$

0.61

 

$

0.52

 

$

0.36

 

$

0.28

 

$

0.16

 

Diluted EPS

$

0.61

 

$

0.52

 

$

0.36

 

$

0.28

 

$

0.16

 

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

 

2021

 

 

2021

 

 

2020

 

 

2020

 

 

2020

 

 
Salaries and benefits

$

6,000

 

$

4,853

 

$

5,477

 

$

4,948

 

$

4,617

 

FTE at the end of period

 

183

 

 

186

 

 

183

 

 

179

 

 

191

 

Average FTE during the period

 

182

 

 

187

 

 

184

 

 

181

 

 

193

 

Salaries and benefits/average FTE¹

$

132

 

$

105

 

$

118

 

$

109

 

$

96

 

Salaries and benefits/average assets¹

 

1.62

%

 

1.44

%

 

1.58

%

 

1.45

%

 

1.44

%

Noninterest expense/average assets¹

 

2.62

%

 

2.54

%

 

2.42

%

 

2.34

%

 

2.35

%

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

 

2021

 

 

 

2021

 

 

 

2020

 

 

 

2020

 

 

 

2019

 

ASSETS
Cash and due from banks

$

10,509

 

$

9,215

 

$

8,750

 

$

8,030

 

$

9,043

 

Interest-earning deposits at the FRB and other banks

 

240,932

 

 

129,713

 

 

153,908

 

 

212,279

 

 

179,519

 

Investment securities¹

 

82,354

 

 

83,409

 

 

85,914

 

 

88,784

 

 

91,091

 

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

 

96,554

 

 

76,066

 

 

59,077

 

 

53,755

 

 

32,264

 

 
Loans receivable

 

1,133,371

 

 

1,113,629

 

 

1,043,662

 

 

1,011,867

 

 

1,005,128

 

Allowance for loan losses

 

(14,908

)

 

(14,888

)

 

(14,366

)

 

(13,614

)

 

(12,283

)

Loans receivable, net

 

1,118,463

 

 

1,098,741

 

 

1,029,296

 

 

998,253

 

 

992,845

 

 
OREO

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Restricted stock investments

 

8,850

 

 

8,196

 

 

8,196

 

 

8,196

 

 

8,196

 

Servicing assets

 

10,189

 

 

10,000

 

 

9,873

 

 

9,043

 

 

8,944

 

Other assets

 

45,071

 

 

21,431

 

 

20,233

 

 

21,064

 

 

21,383

 

Total assets

$

1,612,922

 

$

1,436,771

 

$

1,375,247

 

$

1,399,404

 

$

1,343,285

 

 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing

$

572,284

 

$

408,738

 

$

335,219

 

$

363,350

 

$

295,003

 

Interest-bearing

 

806,397

 

 

782,778

 

 

763,906

 

 

738,040

 

 

732,647

 

Total deposits

 

1,378,681

 

 

1,191,516

 

 

1,099,125

 

 

1,101,390

 

 

1,027,650

 

 
FHLB advances

 

50,000

 

 

65,000

 

 

105,000

 

 

128,671

 

 

148,671

 

Other liabilities

 

13,026

 

 

15,170

 

 

11,145

 

 

13,295

 

 

14,208

 

Total liabilities

 

1,441,707

 

 

1,271,686

 

 

1,215,270

 

 

1,243,356

 

 

1,190,529

 

 
Stockholders' Equity

 

171,215

 

 

165,085

 

 

159,977

 

 

156,048

 

 

152,756

 

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$

1,612,922

 

$

1,436,771

 

$

1,375,247

 

$

1,399,404

 

$

1,343,285

 

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

$

18,753

1.7

%

$

15,858

1.4

%

$

13,685

1.3

%

$

18,236

1.8

%

$

14,649

 

1.5

%

Commercial real estate

 

893,700

78.9

%

 

855,861

76.9

%

 

820,355

78.6

%

 

779,062

77.0

%

 

769,563

 

76.6

%

Commercial and industrial

 

217,350

19.2

%

 

237,865

21.4

%

 

205,883

19.7

%

 

211,298

20.9

%

 

215,362

 

21.4

%

Consumer

 

2,236

0.2

%

 

3,504

0.3

%

 

2,439

0.2

%

 

2,751

0.3

%

 

5,646

 

0.6

%

Gross loans

 

1,132,039

99.9

%

 

1,113,088

100.0

%

 

1,042,362

99.9

%

 

1,011,347

99.9

%

 

1,005,220

 

100.0

%

 
Net deferred loan fees/costs

 

1,332

0.1

%

 

541

0.0

%

 

1,300

0.1

%

 

520

0.1

%

 

(92

)

0.0

%

Loans receivable

$

1,133,371

100.0

%

$

1,113,629

100.0

%

$

1,043,662

100.0

%

$

1,011,867

100.0

%

$

1,005,128

 

100.0

%

 
Loans held-for-sale

$

96,554

$

76,066

$

59,077

$

53,755

$

32,264

 

Loans receivable, including loans held-for-sale

$

1,229,925

$

1,189,695

$

1,102,739

$

1,065,622

$

1,037,392

 

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

 

2021

 

 

 

2021

 

 

 

2020

 

 

 

2020

 

 

 

2020

 

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

$

76,066

 

$

59,077

 

$

53,755

 

$

32,264

 

$

29,988

 

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

 

62,864

 

 

48,152

 

 

26,837

 

 

46,731

 

 

12,497

 

SBA loans sold during the quarter/year

 

(42,163

)

 

(30,238

)

 

(20,382

)

 

(24,866

)

 

(9,832

)

SBA loans principal payment, net of advance

 

(213

)

 

(925

)

 

(1,133

)

 

(374

)

 

(389

)

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

$

96,554

 

$

76,066

 

$

59,077

 

$

53,755

 

$

32,264

 

 
Gain on sale of SBA loans

$

3,988

 

$

2,456

 

$

1,484

 

$

1,662

 

$

509

 

Premium on sale (weighted average)

 

11.9

%

 

10.9

%

 

10.7

%

 

9.8

%

 

8.6

%

 
SBA loan production

$

78,058

 

$

123,762

 

$

37,116

 

$

59,957

 

$

113,782

 

Non-PPP loans

 

75,065

 

 

71,204

 

 

37,116

 

 

59,009

 

 

18,356

 

PPP loans

 

2,994

 

 

52,558

 

 

-

 

 

948

 

 

95,426

 

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

 

2021

 

 

 

2021

 

 

 

2020

 

 

 

2020

 

 

 

2020

 

 
 
SBA servicing assets @ beginning of the quarter/year

$

10,000

 

$

9,873

 

$

9,043

 

$

8,944

 

$

9,203

 

 
Newly added SBA servicing assets from SBA loans sold

 

897

 

 

635

 

 

441

 

 

523

 

 

197

 

Regular quarterly/annual servicing assets amortization

 

(422

)

 

(358

)

 

(392

)

 

(384

)

 

(383

)

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

 

(286

)

 

(150

)

 

(113

)

 

(40

)

 

(73

)

 
Subtotal before impairment

 

10,189

 

 

10,000

 

 

8,979

 

 

9,043

 

 

8,944

 

 
Reversal of valuation allowance on servicing assets

 

-

 

 

894

 

 

-

 

 

-

 

 
SBA servicing assets @ the end of the quarter/year

$

10,189

 

$

10,000

 

$

9,873

 

$

9,043

 

$

8,944

 

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

$

572,284

41.5

%

$

408,738

34.3

%

$

335,219

30.5

%

$

363,350

33.0

%

$

295,003

28.7

%

NOW & MMDA

 

291,437

21.1

%

 

270,531

22.7

%

 

260,374

23.7

%

 

229,730

20.9

%

 

192,950

18.8

%

Savings

 

41,284

3.0

%

 

46,280

3.9

%

 

51,659

4.7

%

 

61,631

5.6

%

 

68,244

6.6

%

TCDs of $250K and under

 

219,174

15.9

%

 

226,611

19.0

%

 

232,192

21.1

%

 

230,230

20.9

%

 

241,718

23.5

%

TCDs of $250K over

 

158,485

11.5

%

 

151,094

12.7

%

 

150,143

13.7

%

 

146,911

13.3

%

 

139,197

13.5

%

Wholesale TCDs

 

96,017

7.0

%

 

88,262

7.4

%

 

69,538

6.3

%

 

69,538

6.3

%

 

90,538

8.8

%

Total Deposits

$

1,378,681

100.0

%

$

1,191,516

100.0

%

$

1,099,125

100.0

%

$

1,101,390

100.0

%

$

1,027,650

100.0

%

 
Recap:
Noninterest-bearing demand

$

572,284

41.5

%

$

408,738

34.3

%

$

335,219

30.5

%

$

363,350

33.0

%

$

295,003

28.7

%

NOW & MMDA

 

291,437

21.1

%

 

270,531

22.7

%

 

260,374

23.7

%

 

229,730

20.9

%

 

192,950

18.8

%

Savings

 

41,284

3.0

%

 

46,280

3.9

%

 

51,659

4.7

%

 

61,631

5.6

%

 

68,244

6.6

%

TCDs of $250K and under

 

219,174

15.9

%

 

226,611

19.0

%

 

232,192

21.1

%

 

230,230

20.9

%

 

241,718

23.5

%

Core Deposits

 

1,124,179

81.5

%

 

952,160

79.9

%

 

879,444

80.0

%

 

884,941

80.3

%

 

797,915

77.6

%

 
TCDs of $250K over

 

158,485

11.5

%

 

151,094

12.7

%

 

150,143

13.7

%

 

146,911

13.3

%

 

139,197

13.5

%

Wholesale TCDs

 

96,017

7.0

%

 

88,262

7.4

%

 

69,538

6.3

%

 

69,538

6.3

%

 

90,538

8.8

%

Noncore Deposits

 

254,502

18.5

%

 

239,356

20.1

%

 

219,681

20.0

%

 

216,449

19.7

%

 

229,735

22.4

%

Total Deposits

$

1,378,681

100.0

%

$

1,191,516

100.0

%

$

1,099,125

100.0

%

$

1,101,390

100.0

%

$

1,027,650

100.0

%

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

 

2021

 

 

 

2021

 

 

 

2020

 

 

 

2020

 

 

 

2020

 

Allowance for Loan Losses
Balance at beginning of period

$

14,888

 

$

14,366

 

$

13,614

 

$

12,283

 

$

11,034

 

Provision for loan losses

 

-

 

 

500

 

 

1,600

 

 

1,600

 

 

1,600

 

Charge-offs

 

-

 

 

(2

)

 

(907

)

 

(292

)

 

(359

)

Recoveries

 

20

 

 

24

 

 

59

 

 

23

 

 

8

 

Balance at the end of period

$

14,908

 

$

14,888

 

$

14,366

 

$

13,614

 

$

12,283

 

 
Nonperforming Assets:¹
Over 90 days still accruing

$

-

 

$

-

 

$

2

 

$

200

 

$

-

 

Nonaccrual loans

 

1,339

 

 

1,347

 

 

2,359

 

 

3,911

 

 

4,189

 

Total nonperforming loans

 

1,339

 

 

1,347

 

 

2,361

 

 

4,111

 

 

4,189

 

 
Other real estate owned

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total nonperforming assets

$

1,339

 

$

1,347

 

$

2,361

 

$

4,111

 

$

4,189

 

 
Classified Assets:¹
Substandard

$

10,052

 

$

9,843

 

$

18,920

 

$

20,579

 

$

9,909

 

Doubtful

 

-

 

 

-

 

 

68

 

 

-

 

 

-

 

Loss

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total classified loans

$

10,052

 

$

9,843

 

$

18,988

 

$

20,579

 

$

9,909

 

 
Other real estate owned

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total classified assets

$

10,052

 

$

9,843

 

$

18,988

 

$

20,579

 

$

9,909

 

 
Performing TDR loans:

$

3,776

 

$

2,516

 

$

2,847

 

$

1,072

 

$

1,073

 

 
Delinquent Loans:¹
Loans 30-89 days past due

$

2,524

 

$

1,681

 

$

3,095

 

$

714

 

$

721

 

90 days or more past due and still accruing

 

-

 

 

-

 

 

2

 

 

200

 

 

-

 

Nonaccrual

 

1,339

 

 

1,347

 

 

2,359

 

 

3,911

 

 

4,189

 

Total delinquent loans

$

3,863

 

$

3,028

 

$

5,456

 

$

4,825

 

$

4,910

 

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

 

(0.01

%)

 

(0.01

%)

 

0.32

%

 

0.10

%

 

0.14

%

Nonaccrual loans to loans receivable

 

0.12

%

 

0.12

%

 

0.23

%

 

0.39

%

 

0.42

%

Nonperforming loans to loans receivable

 

0.12

%

 

0.12

%

 

0.23

%

 

0.41

%

 

0.42

%

Nonperforming assets to total assets

 

0.08

%

 

0.09

%

 

0.17

%

 

0.29

%

 

0.31

%

Classified loans to loans receivable

 

0.89

%

 

0.88

%

 

1.82

%

 

2.03

%

 

0.99

%

Classified loans to Tier 1 and ALLL

 

5.40

%

 

5.47

%

 

10.89

%

 

12.13

%

 

6.00

%

Classified assets to total assets

 

0.62

%

 

0.69

%

 

1.38

%

 

1.47

%

 

0.74

%

Classified assets to Tier 1 and ALLL

 

5.40

%

 

5.47

%

 

10.89

%

 

12.13

%

 

6.00

%

ALLL to loans receivable

 

1.32

%

 

1.34

%

 

1.38

%

 

1.35

%

 

1.22

%

ALLL to loans receivable exc. SBA PPP loans

 

1.42

%

 

1.48

%

 

1.51

%

 

1.48

%

 

1.34

%

ALLL to nonaccrual loans

 

1113.37

%

 

1105.27

%

 

608.99

%

 

348.10

%

 

293.22

%

ALLL to nonperforming loans

 

1113.37

%

 

1105.27

%

 

608.47

%

 

331.16

%

 

293.22

%

ALLL to nonperforming assets

 

1113.37

%

 

1105.27

%

 

608.47

%

 

331.16

%

 

293.22

%

Texas ratio ³

 

0.72

%

 

0.75

%

 

1.35

%

 

2.42

%

 

2.54

%

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

 

2021

 

 

 

2021

 

 

 

2020

 

 

 

2020

 

 

 

2020

 

 
Leverage ratio
Company

N/A

 

N/A

 

11.35

%

 

11.89

%

 

11.56

%

 

11.76

%

 

11.98

%

Bank

5.00%

 

4.00%

 

11.33

%

 

11.87

%

 

11.54

%

 

11.72

%

 

11.94

%

Common equity tier 1 risk-based capital ratio

 

 

 

Company

N/A

 

N/A

 

14.39

%

 

15.00

%

 

15.01

%

 

15.24

%

 

15.23

%

Bank

6.50%

 

7.00%

 

14.37

%

 

14.98

%

 

14.97

%

 

15.20

%

 

15.18

%

Tier 1 risk-based capital ratio

 

 

 

Company

N/A

 

N/A

 

14.39

%

 

15.00

%

 

15.01

%

 

15.24

%

 

15.23

%

Bank

8.00%

 

8.50%

 

14.37

%

 

14.98

%

 

14.97

%

 

15.20

%

 

15.18

%

Total risk-based capital ratio

 

 

 

Company

N/A

 

N/A

 

15.64

%

 

16.25

%

 

16.26

%

 

16.50

%

 

16.48

%

Bank

10.00%

 

10.50%

 

15.62

%

 

16.23

%

 

16.22

%

 

16.45

%

 

16.43

%

 
Common equity/total assets

 

10.62

%

 

11.49

%

 

11.63

%

 

11.15

%

 

11.37

%

Common equity per share

$

16.66

 

$

16.11

 

$

15.61

 

$

15.23

 

$

14.92

 

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

$

1,195,908

 

$

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

%

$

1,018,596

 

$

12,568

4.96

%

Investment securities²

 

83,152

 

 

442

2.13

%

 

84,679

 

 

448

2.15

%

 

87,818

 

 

474

2.15

%

 

90,450

 

 

471

2.07

%

 

91,401

 

 

546

2.40

%

Interest-earning deposits at the FRB and other banks

 

168,677

 

 

54

0.13

%

 

108,127

 

 

36

0.14

%

 

191,703

 

 

59

0.12

%

 

186,678

 

 

58

0.12

%

 

137,945

 

 

45

0.13

%

Other earning assets

 

8,737

 

 

135

6.20

%

 

8,196

 

 

97

4.80

%

 

8,196

 

 

81

3.93

%

 

8,196

 

 

80

3.88

%

 

8,195

 

 

93

4.56

%

Total interest-earning assets ²

 

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

%

 

1,256,137

 

 

13,252

4.24

%

Total interest-earning assets exc. SBA PPP loans²

 

1,356,195

 

 

14,041

4.15

%

 

1,241,306

 

 

13,269

4.34

%

 

1,264,075

 

 

12,945

4.07

%

 

1,239,609

 

 

12,657

4.06

%

 

1,193,346

 

 

12,775

4.31

%

 
NONINTEREST-EARNING ASSETS
Cash and due from banks

 

10,752

 

 

10,025

 

 

10,234

 

 

10,685

 

 

8,224

 

Other noninterest-earning assets

 

32,002

 

 

31,156

 

 

28,903

 

 

31,216

 

 

32,285

 

Total noninterest-earning assets

 

42,754

 

 

41,181

 

 

39,137

 

 

41,901

 

 

40,509

 

 
Less: Allowance for loan losses

 

(14,899

)

 

(14,381

)

 

(13,505

)

 

(12,293

)

 

(10,931

)

TOTAL ASSETS

$

1,484,329

 

$

1,365,936

 

$

1,379,717

 

$

1,361,610

 

$

1,285,715

 

 
INTEREST-BEARING DEPOSITS
Interest-bearing demand

$

13,373

 

$

2

0.06

%

$

15,813

 

$

2

0.05

%

$

11,444

 

$

4

0.14

%

$

11,248

 

$

4

0.14

%

$

13,634

 

$

5

0.15

%

Money market

 

263,845

 

 

352

0.54

%

 

265,856

 

 

366

0.56

%

 

240,913

 

 

360

0.59

%

 

200,878

 

 

404

0.80

%

 

163,332

 

 

374

0.92

%

Savings

 

43,433

 

 

55

0.51

%

 

48,284

 

 

60

0.50

%

 

55,756

 

 

77

0.55

%

 

67,880

 

 

154

0.90

%

 

66,389

 

 

176

1.07

%

Time deposits

 

469,000

 

 

831

0.71

%

 

451,347

 

 

975

0.88

%

 

447,839

 

 

1,236

1.10

%

 

452,950

 

 

1,790

1.57

%

 

509,447

 

 

2,613

2.06

%

Total interest-bearing deposits

 

789,651

 

 

1,240

0.63

%

 

781,300

 

 

1,403

0.73

%

 

755,952

 

 

1,677

0.88

%

 

732,956

 

 

2,352

1.28

%

 

752,802

 

 

3,168

1.69

%

 
Borrowings

 

51,539

 

 

118

0.92

%

 

65,667

 

 

130

0.80

%

 

88,645

 

 

153

0.69

%

 

147,149

 

 

206

0.56

%

 

115,613

 

 

174

0.61

%

Total interest-bearing liabilities

 

841,190

 

 

1,358

0.65

%

 

846,967

 

 

1,533

0.73

%

 

844,597

 

 

1,830

0.86

%

 

880,105

 

 

2,558

1.16

%

 

868,415

 

 

3,342

1.55

%

Total interest-bearing liabilities exc. SBA PPP loan funding

 

740,911

 

 

1,270

0.69

%

 

749,137

 

 

1,449

0.78

%

 

754,587

 

 

1,751

0.92

%

 

787,712

 

 

2,476

1.25

%

 

805,624

 

 

3,287

1.64

%

 
Noninterest-bearing deposits

 

459,695

 

 

343,904

 

 

363,937

 

 

313,370

 

 

249,909

 

Other liabilities

 

13,906

 

 

11,942

 

 

12,623

 

 

12,750

 

 

15,141

 

 
Stockholders' equity

 

169,538

 

 

163,123

 

 

158,560

 

 

155,385

 

 

152,250

 

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$

1,484,329

 

$

1,365,936

 

$

1,379,717

 

$

1,361,610

 

$

1,285,715

 

 
Net interest income²

$

13,611

$

12,885

$

11,829

$

10,701

$

9,910

Net interest income exc. SBA PPP Loans²

$

12,771

$

11,820

$

11,194

$

10,181

$

9,488

 
Net interest spread

3.47

%

3.64

%

3.15

%

2.80

%

2.69

%

 
Effect of noninterest-bearing sources

0.28

%

0.26

%

0.33

%

0.40

%

0.48

%

 
Net interest margin²

3.75

%

3.90

%

3.48

%

3.20

%

3.17

%

Net interest margin exc. SBA PPP loans²

3.78

%

3.86

%

3.52

%

3.27

%

3.20

%

 
 
Cost of deposits

$

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

%

$

1,002,711

 

$

3,168

1.27

%

 
Cost of funds

$

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

%

$

1,118,324

 

$

3,342

1.20

%

Cost of funds exc. SBA ppp loan funding

$

1,200,606

 

$

1,270

0.42

%

$

1,093,041

 

$

1,449

0.54

%

$

1,118,524

 

$

1,751

0.62

%

$

1,101,082

 

$

2,476

0.89

%

$

1,055,533

 

$

3,287

1.25

%

 
1 Includes loans held-for-sale
² Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate
COMPONENTS OF YIELD ON LOANS (Unaudited) - Table 13
(Dollars in thousands)
 
Three Months Ended
June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020
Amount Yield Amount Yield Amount Yield Amount Yield Amount Yield
 
Contractual yield

$

12,670

4.25

%

$

12,148

4.33

%

$

11,727

4.38

%

$

11,522

4.38

%

$

11,578

4.57

%

SBA discount accretion

 

1,027

0.34

%

 

738

0.26

%

 

730

0.27

%

 

615

0.23

%

 

662

0.26

%

Prepayment penalties & late fees

 

89

0.03

%

 

121

0.04

%

 

177

0.07

%

 

221

0.09

%

 

24

0.01

%

Amortization of net deferred costs

 

552

0.19

%

 

830

0.30

%

 

411

0.15

%

 

292

0.11

%

 

304

0.12

%

As reported yield on loans

$

14,338

4.81

%

$

13,837

4.93

%

$

13,045

4.87

%

$

12,650

4.81

%

$

12,568

4.96

%

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

$

1,167,180

 

$

28,175

4.87

%

$

979,872

 

$

26,197

5.38

%

Investment securities²

 

83,911

 

 

890

2.14

%

 

92,888

 

 

1,127

2.44

%

Interest-earning deposits at the FRB and other banks

 

138,570

 

 

90

0.13

%

 

96,584

 

 

233

0.49

%

Other earning assets

 

8,468

 

 

232

5.52

%

 

8,195

 

 

215

5.28

%

Total interest-earning assets ²

 

1,398,129

 

 

29,387

4.24

%

 

1,177,539

 

 

27,772

4.74

%

Total interest-earning assets exc. SBA PPP loans²

 

1,299,068

 

 

27,311

4.24

%

 

1,146,143

 

 

27,295

4.79

%

 
NONINTEREST-EARNING ASSETS
Cash and due from banks

 

10,390

 

 

8,640

 

Other noninterest-earning assets

 

31,582

 

 

31,113

 

Total noninterest-earning assets

 

41,972

 

 

39,753

 

 
Less: Allowance for loan losses

 

(14,641

)

 

(10,763

)

 
TOTAL ASSETS

$

1,425,460

 

$

1,206,529

 

 
INTEREST-BEARING DEPOSITS
Interest-bearing demand

$

14,586

 

$

4

0.06

%

$

12,837

 

$

10

0.16

%

Money market

 

264,845

 

 

718

0.55

%

 

139,941

 

 

775

1.11

%

Savings

 

45,845

 

 

115

0.51

%

 

66,672

 

 

427

1.29

%

Time deposits

 

460,223

 

 

1,806

0.79

%

 

532,616

 

 

5,910

2.23

%

Total interest-bearing deposits

 

785,499

 

 

2,643

0.68

%

 

752,066

 

 

7,122

1.90

%

 
Borrowings

 

58,564

 

 

248

0.85

%

 

62,744

 

 

201

0.64

%

Total interest-bearing liabilities

 

844,063

 

 

2,891

0.69

%

 

814,810

 

 

7,323

1.81

%

Total interest-bearing liabilities exc. SBA PPP loans

 

745,002

 

 

2,719

0.74

%

 

783,414

 

 

7,268

1.87

%

 
Noninterest-bearing deposits

 

402,119

 

 

224,815

 

Other Liabilities

 

12,929

 

 

15,526

 

 
Stockholders' equity

 

166,349

 

 

151,378

 

 
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$

1,425,460

 

$

1,206,529

 

 
Net interest income²

$

26,496

$

20,449

Net interest income exc. SBA PPP loans²

$

24,592

$

20,027

 
Net interest spread

3.55

%

2.93

%

 
Effect of noninterest-bearing sources

0.27

%

0.56

%

 
Net interest margin²

3.82

%

3.49

%

Net interest margin exc. SBA PPP loans²

3.82

%

3.51

%

 
 
Cost of deposits

$

1,187,618

 

$

2,643

0.45

%

$

976,881

 

$

7,122

1.47

%

 
Cost of funds

$

1,246,182

 

$

2,891

0.47

%

$

1,039,625

 

$

7,323

1.42

%

Cost of funds exc. SBA PPP loan funding

$

1,147,121

 

$

2,719

0.48

%

$

1,008,229

 

$

7,268

1.45

%

 
1 Includes loans held-for-sale
² Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate
COMPONENTS OF YIELD ON LOANS (Unaudited) - Table 15
(Dollars in thousands)
 
Six Months Ended
June 30, 2021 June 30, 2020
Amount Yield Amount Yield
 
Contractual yield

$

24,818

4.29

%

$

24,023

4.93

%

SBA discount accretion

 

1,765

0.30

%

 

1,852

0.38

%

Prepayment penalties & late fees

 

210

0.04

%

 

130

0.03

%

Amortization of net deferred costs

 

1,382

0.24

%

 

192

0.04

%

As reported yield on loans

$

28,175

4.87

%

$

26,197

5.38

%

 


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