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Limestone Bancorp Reports Net Income of $3.6 million, or $0.47 per Diluted Share, for the 1st Quarter of 2022


Limestone Bancorp, Inc. (NASDAQ: LMST) (the "Company"), parent company of Limestone Bank, Inc. (the "Bank"), today reported unaudited results for the first quarter of 2022. Net income available to common shareholders for the first quarter of 2022 was $3.6 million, or $0.47 per basic and diluted common share, compared with $3.2 million, or $0.43 per basic and diluted common share, for the first quarter of 2021.

John T. Taylor, Chief Executive Officer, stated, "We continue to be pleased with the Company's strong financial performance. We were able to build on our loan growth momentum from last year and achieve loan growth of 4.5% for the first quarter. Additionally, given the Company's solid capital position and earnings levels, we instituted a quarterly common share dividend on April 1, 2022, as a return of profits to our shareholders. I continue to be excited about the future of our franchise."

Total assets were $1.41 billion at March 31, 2022. The loan portfolio increased $45.4 million, or 4.5%, during the first quarter to $1.05 billion at March 31, 2022. Lower earning fed funds sold were reduced by $45.6 million during the quarter.

Net Interest Income and Average Earning Assets ? Net interest income was $11.1 million for the first quarter of 2022, compared to $11.0 million for the fourth quarter of 2021, and $10.7 million for the first quarter of 2021. Net interest margin increased to 3.42% for the first quarter of 2022, compared with 3.32% for the fourth quarter of 2021, and decreased from 3.53% for the first quarter of 2021.

The yield on earning assets increased to 3.82% in the first quarter of 2022, compared to 3.71% in the fourth quarter of 2021, and decreased from 4.05% in the first quarter of 2021. Quarter over quarter, average loans increased $73.0 million to $1.03 billion, while lower yielding fed funds sold decreased $73.8 million. PPP loans averaged $605,000 and $3.5 million for the first quarter of 2022 and the fourth quarter of 2021, respectively. Compared to the prior year first quarter, average loans increased $64.2 million and investment securities increased $54.3 million, while lower yielding fed funds sold decreased $22.1 million. PPP loans averaged $21.1 million for the first quarter of 2021.

While the Federal Reserve recently increased the federal funds target rate by 25 basis points on March 16, 2022, the yield on earning assets for the first quarter of 2022 and for the 2021 fiscal year were negatively impacted by the low interest rate environment on the Bank's fed funds sold, certain floating rate investment securities, loans with variable rate pricing features, and new loan originations, including PPP loans which carry a rate of 1.0%. The negative impact of low rates was offset by an increase in loan fee income discussed below.

Loan fee income can meaningfully impact net interest income, loan yields, and net interest margin. The amount of loan fee income included in total interest income was $324,000, $967,000, and $844,000 for the quarters ended March 31, 2022, December 31, 2021, and March 31, 2021, respectively. This represents 10 basis points, 29 basis points, and 28 basis points of yield on earning assets and net interest margin for the quarters ended March 31, 2022, December 31, 2021, and March 31, 2021, respectively. Loan fee income for the first quarter of 2022 included $45,000 in fees earned on PPP loans, compared to $261,000 in the fourth quarter of 2021, and $436,000 in the first quarter of 2021, which represents two basis points, eight basis points, and 14 basis points of earning asset yield and net interest margin for those quarters, respectively. At March 31, 2022, PPP loans totaled $180,000 with no significant unearned PPP origination fees remaining.

The cost of interest-bearing liabilities was unchanged at 0.53% for the first quarter of 2022, compared to the fourth quarter of 2021, and decreased from 0.68% in the first quarter of 2021. The cost of interest-bearing liabilities continued to benefit as a result of continued improvement in deposit mix, as well as the downward repricing of time deposits between periods. Time deposits declined $5.9 million during the first quarter of 2022 as approximately $55.0 million of time deposits with an average rate of 0.33% matured and redeemed or repriced at lower interest rates. During the first quarter of 2022, newly originated or renewed time deposits had an average rate of 0.26% and an average term of approximately 16 months.

As of March 31, 2022, time deposits comprised $260.1 million of the Company's liabilities including $59.4 million with a current average rate of 0.29%, which reprice or mature in the second quarter of 2022. The following table denotes contractual time deposit maturities and average rates as of March 31, 2022:

Maturity

Quarter

 

As of

March 31,

2022

(in thousands)

Weighted
Average
Rate

 

 

 

 

Q2-2022

 

 

59,393

 

0.29

 

Q3-2022

 

 

38,562

 

0.34

 

Q4-2022

 

 

31,670

 

0.32

 

Q1-2023

 

 

38,631

 

0.44

 

Thereafter

 

 

91,808

 

0.86

 

Total time deposits

 

$

260,064

 

0.52

%

Provision and Allowance for Loan Losses ? The allowance for loan losses to total loans was 1.16% at March 31, 2022, compared to 1.15% at December 31, 2021, and 1.30% at March 31, 2021.

Net loan charge-offs were $86,000 for the first quarter of 2022, compared to net loan charge-offs of $1.9 million for the fourth quarter of 2021, and net loan charge-offs of $38,000 for the first quarter of 2021. A provision for loan loss of $750,000, or $0.07 per common share after taxes, was recorded in the first quarter of 2022, compared to $500,000, or $0.05 per common share after taxes, in the fourth quarter of 2021, and compared to $350,000, or $0.04 per common share after taxes, in the first quarter of 2021. The 2022 and 2021 loan loss provisions were attributable to net loan charge-offs impacting historical loss percentages and growth trends within the portfolio during the quarters.

Non-interest Income and Expense ? Non-interest income for the first quarter of 2022 increased $461,000 to $2.2 million, compared with $1.8 million for the fourth quarter of 2021, and $354,000 compared with $1.9 million for the first quarter of 2021. The increase for the first quarter of 2022 was primarily related to a $163,000 gain on the sale of premises held for sale. Non-interest expense was $8.0 million for the first quarter of 2022, the fourth quarter of 2021, and the first quarter of 2021. Salaries and benefits represent our most significant non-interest expense. Salaries and benefits expense decreased $37,000 from the fourth quarter of 2021 and increased $82,000 from the first quarter of 2021. These fluctuations are generally driven by changes in FTEs during each period. Given current market conditions, we expect inflationary pressure to impact salaries and benefits in the range of four to five percent in 2022 as we compete for talent and administer our wage and benefit programs.

About Limestone Bancorp, Inc.

Limestone Bancorp, Inc. (NASDAQ: LMST) is a Louisville, Kentucky-based bank holding company which operates banking centers in 14 counties through its wholly-owned subsidiary Limestone Bank. The Bank's markets include metropolitan Louisville in Jefferson County and the surrounding counties of Bullitt and Henry and extend south along the Interstate 65 corridor. The Bank serves south central, southern, and western Kentucky from banking centers in Barren, Butler, Daviess, Edmonson, Green, Hardin, Hart, Ohio, and Warren counties. The Bank also has banking centers in Lexington, Kentucky, the second largest city in the state, and Frankfort, Kentucky, the state capital. Limestone Bank is a traditional community bank with a wide range of personal and business banking products and services.

Forward-Looking Statements

Statements in this press release relating to Limestone Bancorp's plans, objectives, expectations or future performance are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "may," "should," "anticipate," "estimate," "expect," "intend," "objective," "possible," "seek," "plan," "strive" or similar words, or negatives of these words, identify forward-looking statements that involve risks and uncertainties. Although the Company's management believes the assumptions underlying the forward-looking statements contained herein are reasonable, any of these assumptions could be inaccurate. Therefore, there can be no assurance the forward-looking statements included herein will prove to be accurate. Factors that could cause actual results to differ from those discussed in forward-looking statements include, but are not limited to: the impact and duration of the COVID-19 pandemic; economic conditions both generally and more specifically in the markets in which the Company and its subsidiaries operate; competition for the Company's customers from other providers of financial services; government legislation and regulation, which change from time to time and over which the Company has no control; changes in inflation and efforts to control it; changes in interest rates; material unforeseen changes in liquidity, results of operations, or financial condition of the Company's customers; and other risks detailed in the Company's filings with the Securities and Exchange Commission, all of which are difficult to predict and many of which are beyond the control of the Company. See Risk Factors outlined in the Company's Form 10-K for the year ended December 31, 2021.

Additional Information

Unaudited supplemental financial information for the first quarter ending March 31, 2022, follows.

LIMESTONE BANCORP, INC.

Unaudited Financial Information

(in thousands, except share and per share data)

 

 

Three Months Ended

 

 

 

3/31/22

 

3/31/21

 

 

 

 

 

 

 

 

 

 

Income Statement Data

 

 

 

 

 

 

 

Interest income

$

12,427

 

$

12,250

 

 

Interest expense

 

1,313

 

 

1,570

 

 

Net interest income

 

11,114

 

 

10,680

 

 

Provision for loan losses

 

750

 

 

350

 

 

Net interest income after provision

 

10,364

 

 

10,330

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

634

 

 

548

 

 

Bank card interchange fees

 

1,003

 

 

960

 

 

Bank owned life insurance income

 

202

 

 

165

 

 

Gain on sale of premises held for sale

 

163

 

 

?

 

 

Other

 

236

 

 

211

 

 

Non-interest income

 

2,238

 

 

1,884

 

 

 

 

 

 

 

 

 

 

Salaries & employee benefits

 

4,564

 

 

4,482

 

 

Occupancy and equipment

 

1,029

 

 

1,060

 

 

Professional fees

 

221

 

 

236

 

 

Marketing expense

 

133

 

 

182

 

 

FDIC insurance

 

90

 

 

135

 

 

Data processing expense

 

386

 

 

378

 

 

Deposit tax

 

99

 

 

90

 

 

Deposit account related expense

 

547

 

 

491

 

 

Communications expense

 

64

 

 

173

 

 

Insurance expense

 

105

 

 

104

 

 

Postage and delivery

 

163

 

 

152

 

 

Other

 

570

 

 

501

 

 

Non-interest expense

 

7,971

 

 

7,984

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

4,631

 

 

4,230

 

 

Income tax expense

 

1,052

 

 

1,008

 

 

Net income

 

3,579

 

 

3,222

 

 

 

 

 

 

 

 

 

 

Weighted average shares ? Basic

 

7,614,382

 

 

7,575,211

 

 

Weighted average shares ? Diluted

 

7,614,382

 

 

7,575,211

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.47

 

$

0.43

 

 

Diluted earnings per common share

$

0.47

 

$

0.43

 

 

Cash dividends declared per common share

$

0.05

 

$

0.00

 

 

 

 

 

 

 

 

 

 

Performance Ratios

 

 

 

 

 

 

 

Return on average assets

 

1.03

%

 

0.99

%

Return on average equity

 

11.07

 

 

11.11

 

 

Yield on average earning assets (tax equivalent)

 

3.82

 

 

4.05

 

 

Cost of interest-bearing liabilities

 

0.53

 

 

0.68

 

 

Net interest margin (tax equivalent)

 

3.42

 

 

3.53

 

 

Efficiency ratio1

 

59.70

 

 

63.55

 

 

Non-interest expense to average assets

 

2.30

 

 

2.46

 

 

 

 

 

 

 

 

 

 

LIMESTONE BANCORP, INC.

Unaudited Financial Information

(in thousands, except share and per share data)

 

 

 

Three

 

Three

 

Three

 

 

Three

 

 

Three

 

 

 

 

 

 

Months

 

Months

 

Months

 

 

Months

 

 

Months

 

 

 

 

 

 

Ended

 

Ended

 

Ended

 

 

Ended

 

 

Ended

 

 

 

 

 

 

3/31/22

 

12/31/21

 

9/30/21

 

 

6/30/21

 

 

3/31/21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

12,427

 

$

12,314

 

$

12,975

 

$

12,376

 

$

12,250

 

 

 

 

Interest expense

 

1,313

 

 

1,307

 

 

1,354

 

 

1,462

 

 

1,570

 

 

 

 

Net interest income

 

11,114

 

 

11,007

 

 

11,621

 

 

10,914

 

 

10,680

 

 

 

 

Provision for loan losses

 

750

 

 

500

 

 

300

 

 

?

 

 

350

 

 

 

 

Net interest income after provision

 

10,364

 

 

10,507

 

 

11,321

 

 

10,914

 

 

10,330

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

634

 

 

605

 

 

583

 

 

520

 

 

548

 

 

 

 

Bank card interchange fees

 

1,003

 

 

1,039

 

 

1,044

 

 

1,073

 

 

960

 

 

 

 

Bank owned life insurance income

 

202

 

 

106

 

 

112

 

 

143

 

 

165

 

 

 

 

Gain on sale of OREO

 

?

 

 

?

 

 

?

 

 

191

 

 

?

 

 

 

 

Gain (loss) on sales and calls of securities, net

 

?

 

 

?

 

 

465

 

 

(5

)

 

?

 

 

 

 

Gain on sale of premises held for sale

 

163

 

 

?

 

 

?

 

 

?

 

 

?

 

 

 

 

Other

 

236

 

 

234

 

 

232

 

 

213

 

 

211

 

 

 

 

Non-interest income

 

2,238

 

 

1,984

 

 

2,436

 

 

2,135

 

 

1,884

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries & employee benefits

 

4,564

 

 

4,601

 

 

4,582

 

 

4,467

 

 

4,482

 

 

 

 

Occupancy and equipment

 

1,029

 

 

978

 

 

1,024

 

 

979

 

 

1,060

 

 

 

 

Professional fees

 

221

 

 

251

 

 

219

 

 

246

 

 

236

 

 

 

 

Marketing expense

 

133

 

 

166

 

 

200

 

 

179

 

 

182

 

 

 

 

FDIC insurance

 

90

 

 

90

 

 

90

 

 

90

 

 

135

 

 

 

 

Data processing expense

 

386

 

 

379

 

 

378

 

 

377

 

 

378

 

 

 

 

Deposit tax

 

99

 

 

105

 

 

90

 

 

90

 

 

90

 

 

 

 

Deposit account related expense

 

547

 

 

566

 

 

545

 

 

556

 

 

491

 

 

 

 

Communications expense

 

64

 

 

161

 

 

153

 

 

194

 

 

173

 

 

 

 

Insurance expense

 

105

 

 

91

 

 

105

 

 

115

 

 

104

 

 

 

 

Postage and delivery

 

163

 

 

145

 

 

169

 

 

139

 

 

152

 

 

 

 

Other

 

570

 

 

450

 

 

495

 

 

522

 

 

501

 

 

 

 

Non-interest expense

 

7,971

 

 

7,983

 

 

8,050

 

 

7,954

 

 

7,984

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

4,631

 

 

4,508

 

 

5,707

 

 

5,095

 

 

4,230

 

 

 

 

Income tax expense

 

1,052

 

 

1,063

 

 

1,366

 

 

1,194

 

 

1,008

 

 

 

 

Net income

$

3,579

 

$

3,445

 

$

4,341

 

$

3,901

 

$

3,222

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares ? Basic

 

7,614,382

 

 

7,597,256

 

 

7,602,686

 

 

7,597,202

 

 

7,575,211

 

 

 

 

Weighted average shares ? Diluted

 

7,614,382

 

 

7,597,256

 

 

7,602,686

 

 

7,597,202

 

 

7,575,211

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.47

 

$

0.45

 

$

0.57

 

$

0.51

 

$

0.43

 

 

 

 

Diluted earnings per common share

$

0.47

 

$

0.45

 

$

0.57

 

$

0.51

 

$

0.43

 

 

 

 

Cash dividends declared per common share

$

0.05

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.03

%

 

0.97

%

 

1.26

%

 

1.15

%

 

0.99

%

 

 

 

Return on average equity

 

11.07

 

 

10.51

 

 

13.61

 

 

12.89

 

 

11.11

 

 

 

 

Yield on average earning assets (tax equivalent)

 

3.82

 

 

3.71

 

 

4.03

 

 

3.91

 

 

4.05

 

 

 

 

Cost of interest-bearing liabilities

 

0.53

 

 

0.53

 

 

0.56

 

 

0.61

 

 

0.68

 

 

 

 

Net interest margin (tax equivalent)

 

3.42

 

 

3.32

 

 

3.61

 

 

3.45

 

 

3.53

 

 

 

 

Efficiency ratio1

 

59.70

 

 

61.45

 

 

59.23

 

 

60.93

 

 

63.55

 

 

 

 

Non-interest expense to average assets

2.30

 

2.25

2.33

2.34

 

2.46

 

 

LIMESTONE BANCORP, INC.

Unaudited Financial Information

(in thousands, except share and per share data)

 

 

 

As of

 

 

 

3/31/22

 

12/31/21

 

9/30/21

 

 

6/30/21

 

 

3/31/21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

$

1,047,285

 

$

1,001,840

 

$

968,088

 

$

947,425

 

$

978,865

 

 

 

 

Allowance for loan losses

 

(12,195

)

 

(11,531

)

 

(12,973

)

 

(12,637

)

 

(12,755

)

 

 

 

Net loans

 

1,035,090

 

 

990,309

 

 

955,115

 

 

934,788

 

 

966,110

 

 

 

 

Securities held to maturity2

 

45,639

 

 

46,460

 

 

47,539

 

 

46,717

 

 

41,254

 

 

 

 

Securities available for sale2

 

204,071

 

 

214,213

 

 

203,548

 

 

182,154

 

 

177,690

 

 

 

 

Federal funds sold & interest-bearing deposits

 

22,040

 

 

67,110

 

 

44,909

 

 

75,536

 

 

74,047

 

 

 

 

Cash and due from financial institutions

 

10,009

 

 

10,493

 

 

13,579

 

 

9,584

 

 

9,800

 

 

 

 

Premises and equipment

 

23,043

 

 

21,575

 

 

21,623

 

 

21,912

 

 

20,405

 

 

 

 

Premises held for sale

 

?

 

 

310

 

 

980

 

 

980

 

 

1,035

 

 

 

 

Bank owned life insurance

 

30,643

 

 

23,946

 

 

23,845

 

 

23,738

 

 

23,601

 

 

 

 

FHLB Stock

 

5,116

 

 

5,116

 

 

5,116

 

 

5,449

 

 

5,810

 

 

 

 

Other real estate owned

 

?

 

 

?

 

 

?

 

 

?

 

 

1,765

 

 

 

 

Deferred taxes, net

 

22,648

 

 

21,583

 

 

22,161

 

 

23,452

 

 

24,992

 

 

 

 

Goodwill

 

6,252

 

 

6,252

 

 

6,252

 

 

6,252

 

 

6,252

 

 

 

 

Intangible assets

 

1,925

 

 

1,989

 

 

2,053

 

 

2,117

 

 

2,181

 

 

 

 

Accrued interest receivable and other assets

 

6,230

 

 

6,336

 

 

6,128

 

 

6,231

 

 

6,769

 

 

 

 

Total Assets

$

1,412,706

 

$

1,415,692

 

$

1,352,848

 

$

1,338,910

 

$

1,361,711

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

$

260,064

 

$

266,011

 

$

280,545

 

$

303,668

 

$

355,309

 

 

 

 

Interest checking

 

274,054

 

 

287,208

 

 

239,923

 

 

216,344

 

 

211,322

 

 

 

 

Money market

 

216,845

 

 

217,943

 

 

198,470

 

 

191,773

 

 

180,137

 

 

 

 

Savings

 

166,135

 

 

163,423

 

 

163,018

 

 

160,257

 

 

151,340

 

 

 

 

Total interest-bearing deposits

 

917,098

 

 

934,585

 

 

881,956

 

 

872,042

 

 

898,108

 

 

 

 

Demand deposits

 

281,533

 

 

274,083

 

 

266,035

 

 

267,059

 

 

268,882

 

 

 

 

Total deposits

 

1,198,631

 

 

1,208,668

 

 

1,147,991

 

 

1,139,101

 

 

1,166,990

 

 

 

 

FHLB advances

 

30,000

 

 

20,000

 

 

20,000

 

 

20,000

 

 

20,613

 

 

 

 

Junior subordinated debentures

 

21,000

 

 

21,000

 

 

21,000

 

 

21,000

 

 

21,000

 

 

 

 

Subordinated capital note

 

25,000

 

 

25,000

 

 

25,000

 

 

25,000

 

 

25,000

 

 

 

 

Accrued interest payable and other liabilities

 

9,855

 

 

10,065

 

 

10,193

 

 

9,850

 

 

8,588

 

 

 

 

Total liabilities

 

1,284,486

 

 

1,284,733

 

 

1,224,184

 

 

1,214,951

 

 

1,242,191

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

128,220

 

 

130,959

 

 

128,664

 

 

123,959

 

 

119,520

 

 

 

 

Total Liabilities and Stockholders' Equity

$

1,412,706

 

$

1,415,692

 

$

1,352,848

 

$

1,338,910

 

$

1,361,711

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending shares outstanding

 

7,622,157

 

 

7,594,749

 

 

7,602,686

 

 

7,602,686

 

 

7,594,499

 

 

 

 

Book value per common share

$

16.82

 

$

17.24

 

$

16.92

 

$

16.30

 

$

15.74

 

 

 

 

Tangible book value per common share3

 

15.75

 

 

16.16

 

 

15.83

 

 

15.20

 

 

14.63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIMESTONE BANCORP, INC.

Unaudited Financial Information

(in thousands, except share and per share data)

 

 

 

As of

 

 

 

3/31/22

 

 

12/31/21

 

 

9/30/21

 

 

6/30/21

 

 

3/31/21

 

 

 

 

Average Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

$

1,407,030

 

$

1,405,219

 

$

1,369,372

 

$

1,361,080

 

$

1,316,878

 

 

 

 

Loans

 

1,028,546

 

 

955,516

 

 

952,567

 

 

961,922

 

 

964,353

 

 

 

 

Earning assets

 

1,326,234

 

 

1,322,821

 

 

1,284,188

 

 

1,275,363

 

 

1,230,610

 

 

 

 

Deposits

 

1,199,174

 

 

1,199,334

 

 

1,166,785

 

 

1,164,524

 

 

1,125,943

 

 

 

 

Long-term debt and advances

 

67,667

 

 

66,000

 

 

66,000

 

 

66,000

 

 

66,617

 

 

 

 

Interest bearing liabilities

 

996,710

 

 

982,132

 

 

954,007

 

 

956,172

 

 

941,342

 

 

 

 

Stockholders' equity

 

131,097

 

 

129,998

 

 

126,556

 

 

121,386

 

 

117,663

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

$

3,447

 

$

3,124

 

$

1,627

 

$

1,530

 

$

1,996

 

 

 

 

Troubled debt restructurings on accrual

 

333

 

 

340

 

 

561

 

 

390

 

 

399

 

 

 

 

Loan 90 days or more past due still on accrual

 

?

 

 

?

 

 

?

 

 

?

 

 

?

 

 

 

 

Total non-performing loans

 

3,780

 

 

3,464

 

 

2,188

 

 

1,920

 

 

2,395

 

 

 

 

Real estate acquired through foreclosures

 

?

 

 

?

 

 

?

 

 

?

 

 

1,765

 

 

 

 

Other repossessed assets

 

?

 

 

?

 

 

?

 

 

?

 

 

?

 

 

 

 

Total non-performing assets

$

3,780

 

$

3,464

 

$

2,188

 

$

1,920

 

$

4,160

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans to total loans

 

0.36

%

 

0.35

%

 

0.23

%

 

0.20

%

 

0.24

%

 

 

 

Non-performing assets to total assets

 

0.27

 

 

0.24

 

 

0.16

 

 

0.14

 

 

0.31

 

 

 

 

Allowance for loan losses to non-performing loans

 

322.62

 

 

332.88

 

 

592.92

 

 

658.18

 

 

532.57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to total loans

 

1.16

%

 

1.15

%

 

1.34

%

 

1.33

%

 

1.30

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan Charge-off Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans charged off

$

(227

)

$

(2,246

)

$

(25

)

$

(178

)

$

(77

)

 

 

 

Recoveries

 

141

 

 

304

 

 

61

 

 

60

 

 

39

 

 

 

 

Net (charge-offs) recoveries

$

(86

)

$

(1,942

)

$

36

 

$

(118

)

$

(38

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans by Risk Category4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

1,023,039

 

$

977,962

 

$

945,396

 

$

913,753

 

$

942,492

 

 

 

 

Watch

 

8,567

 

 

7,856

 

 

3,407

 

 

15,888

 

 

17,929

 

 

 

 

Special Mention

 

?

 

 

?

 

 

?

 

 

?

 

 

?

 

 

 

 

Substandard

 

15,679

 

 

16,022

 

 

19,285

 

 

17,784

 

 

18,444

 

 

 

 

Doubtful

 

?

 

 

?

 

 

?

 

 

?

 

 

?

 

 

 

 

Total

$

1,047,285

 

$

1,001,840

 

$

968,088

 

$

947,425

 

$

978,865

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans by Past Due Status

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past due loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30 ? 59 days

$

1,108

 

$

556

 

$

630

 

$

181

 

$

677

 

 

 

 

60 ? 89 days

 

89

 

 

210

 

 

142

 

 

252

 

 

254

 

 

 

 

90 days or more

 

?

 

 

?

 

 

?

 

 

?

 

 

?

 

 

 

 

Nonaccrual loans

 

3,447

 

 

3,124

 

 

1,627

 

 

1,530

 

 

1,996

 

 

 

 

Total past due and nonaccrual loans

$

4,644

 

$

3,890

 

$

2,399

 

$

1,963

 

$

2,927

 

 

 

LIMESTONE BANCORP, INC.

Unaudited Financial Information

(in thousands, except share and per share data)

 

 

As of

 

 

3/31/22

 

12/31/21

 

9/30/21

 

6/30/21

 

3/31/21

 

Risk-based Capital Ratios - Company

 

 

 

 

 

 

 

 

 

 

Tier I leverage ratio

9.38

%

9.14

%

9.39

%

8.70

%

8.59

%

Common equity Tier I risk-based capital ratio

8.93

 

9.00

 

9.37

 

9.48

 

8.96

 

Tier I risk-based capital ratio

10.19

 

10.38

 

10.86

 

10.63

 

10.00

 

Total risk-based capital ratio

13.12

 

13.41

 

14.13

 

14.09

 

13.42

 

 

 

 

 

 

 

 

 

 

 

 

Risk-based Capital Ratios ? Limestone Bank

 

 

 

 

 

 

 

 

 

 

Tier I leverage ratio

11.20

%

10.84

%

10.96

%

10.55

%

10.44

%

Common equity Tier I risk-based capital ratio

12.21

 

12.35

 

12.68

 

12.95

 

12.21

 

Tier I risk-based capital ratio

12.21

 

12.35

 

12.68

 

12.95

 

12.21

 

Total risk-based capital ratio

13.17

 

13.31

 

13.80

 

14.11

 

13.37

 

 

 

 

 

 

 

 

 

 

 

 

FTE employees, end of period

222

 

227

 

232

 

231

 

225

 

 

Footnotes:

(1) The efficiency ratio is a non-GAAP measure of expense control relative to revenue from net interest income and fee income. The efficiency ratio is calculated by dividing total non-interest expenses as determined under GAAP by net interest income and total non-interest income, but excluding from the calculation net gains on the sale of securities and expenses disclosed from time to time as non-recurring in nature. Management believes this provides a reasonable measure of primary banking expenses relative to primary banking revenue.

 

 

 

 

 

Three Months Ended

 

 

 

3/31/22

 

 

12/31/21

 

 

9/30/21

 

 

6/30/21

 

 

3/31/21

 

Efficiency Ratio

(in thousands)

 

 

 

 

Net interest income

$

11,114

 

$

11,007

 

$

11,621

 

$

10,914

 

$

10,680

 

Non-interest income

 

2,238

 

 

1,984

 

 

2,436

 

 

2,135

 

 

1,884

 

Less: Net gain (loss) on securities

 

?

 

 

?

 

 

465

 

 

(5

)

 

?

 

Revenue used for efficiency ratio

 

13,352

 

 

12,991

 

 

13,592

 

 

13,054

 

 

12,564

 

Non-interest expense

 

7,971

 

 

7,983

 

 

8,050

 

 

7,954

 

 

7,984

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

59.70

%

 

61.45

%

 

59.23

%

 

60.93

%

 

63.55

%

(2) Investment Securities ? The following table sets forth the amortized cost and fair value of our securities portfolio at the dates indicated.

 

 

March 31, 2022

 

 

December 31, 2021

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

(dollars in thousands)

Securities available for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and

federal agencies

 

$

26,952

 

 

$

?

 

 

$

(1,196

)

 

$

25,756

 

 

$

26,075

 

 

$

301

 

 

$

(133

)

 

$

26,243

Agency mortgage-backed residential

 

 

90,589

 

 

 

177

 

 

 

(5,097

)

 

 

85,669

 

 

 

93,650

 

 

 

1,339

 

 

 

(970

)

 

 

94,019

Collateralized loan obligations

 

 

48,221

 

 

 

?

 

 

 

(297

)

 

 

47,924

 

 

 

50,227

 

 

 

?

 

 

 

(78

)

 

 

50,149

Corporate bonds

 

 

45,453

 

 

 

221

 

 

 

(952

)

 

 

44,722

 

 

 

43,432

 

 

 

572

 

 

 

(202

)

 

 

43,802

Total available for sale

 

$

211,215

 

 

$

398

 

 

$

(7,542

)

 

$

204,071

 

 

$

213,384

 

 

$

2,212

 

 

$

(1,383

)

 

$

214,213

 

 

Amortized
Cost

 

 

Gross
Unrecognized
Gains

 

 

Gross
Unrecognized
Losses

 

 

Fair
Value

 

 

Amortized
Cost

 

 

Gross
Unrecognized
Gains

 

 

Gross
Unrecognized
Losses

 

 

Fair
Value

 

 

(dollars in thousands)

Securities held to maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State and municipal

 

$

45,639

 

 

$

24

 

 

$

(4,873

)

 

$

40,790

 

 

$

46,460

 

 

$

158

 

 

$

(338

)

 

$

46,280

Total held to maturity

 

$

45,639

 

 

$

24

 

 

$

(4,873

)

 

$

40,790

 

 

$

46,460

 

 

$

158

 

 

$

(338

)

 

$

46,280

(3) Tangible book value per common share is a non-GAAP financial measure derived from GAAP based amounts. Tangible book value per common share is calculated by excluding the balance of goodwill and other intangible assets from common stockholders' equity. Tangible book value per common share is calculated by dividing tangible common equity by common shares outstanding, as compared to book value per common share, which is calculated by dividing common stockholders' equity by common shares outstanding. Management believes this is consistent with bank regulatory agency treatment, which excludes goodwill and other intangible assets from the calculation of risk-based capital.

 

 

As of

 

 

3/31/22

 

 

12/31/21

 

 

9/30/21

 

 

6/30/21

 

 

3/31/21

Tangible Book Value Per Share

(in thousands, except share and per share data)

 

 

Common stockholders' equity

$

128,220

 

$

130,959

 

$

128,664

 

$

123,959

 

$

119,520

Less: Goodwill

 

6,252

 

 

6,252

 

 

6,252

 

 

6,252

 

 

6,252

Less: Intangible assets

 

1,925

 

 

1,989

 

 

2,053

 

 

2,117

 

 

2,181

Tangible common equity

 

120,043

 

 

122,718

 

 

120,359

 

 

115,590

 

 

111,087

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding

 

7,622,157

 

 

7,594,749

 

 

7,602,686

 

 

7,602,686

 

 

7,594,499

Tangible book value per common share

$

15.75

 

$

16.16

 

$

15.83

 

$

15.20

 

$

14.63

Book value per common share

 

16.82

 

 

17.24

 

 

16.92

 

 

16.30

 

 

15.74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4) Loans by Risk Category reflect management's risk ratings based on categories aligned with the bank regulatory definitions.


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