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CBB Bancorp, Inc. Reports Fourth Quarter and Full Year 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 fourth quarter 2021 of $8.0 million, or $0.77 per diluted share, an increase of 1.7% compared to $7.9 million, or $0.75 per diluted share, in the prior quarter and $115.7% compared to $3.7 million, or $0.36 per diluted share, in the same period last year.

Additionally, CBB reported net income for the year ended December 31, 2021 of $27.5 million, or $2.65 per diluted share, an increase of 178.6% from the $9.9 million, or $0.96 per diluted share, of net income for 2020.

Overall Results

Net income for fourth quarter 2021 was positively impacted by the continued strength of the Bank’s SBA loan originations and sales. The Company’s annualized return on average assets for fourth quarter 2021 was 1.68% compared to 1.73% for third quarter 2021 and 1.07% for fourth quarter 2020. The annualized return on average equity for fourth quarter 2021 was 17.54% compared to 17.87% for third quarter 2021 and 9.32% for fourth quarter 2020. The net interest margin for fourth quarter 2021 was 3.49% compared to 3.62% for third quarter 2021 and 3.48% for fourth quarter 2020. The efficiency ratio for fourth quarter 2021 was 52.84% compared to 49.00% for third quarter 2021 and 55.12% for fourth quarter 2020.

Joanne Kim, President and CEO, commented, “We are pleased to announce record quarterly earnings for the fourth consecutive quarter, as our earnings continue to benefit from growing net interest income and SBA loan sales, while maintaining excellent asset quality.”

Net Interest Income and Margin:

Net Interest Income

Net interest income for fourth quarter 2021 was $16.3 million, an increase of $188 thousand, or 1.2%, from third quarter 2021, and an increase of $4.5 million, or 38.2%, from fourth quarter 2020. For the year ended December 31, 2021, net interest income was $58.8 million, an increase of $16.0 million, or 37.4%, over 2020. The increase in net interest income over the prior year was primarily driven by our ability to continue to aggressively lower deposit rates combined with the impact of the inclusion of operations of the acquired Ohana Pacific Bank for the last six months the year.

Net Interest Margin

Our net interest margin for fourth quarter 2021 was 3.49% compared to 3.62% for third quarter 2021 and 3.48% for fourth quarter 2020. The decrease in net interest margin was due to the higher average levels of interest-earning deposits at the FRB and other banks in the fourth quarter of 2021. For the year ended December 31, 2021, net interest margin was 3.67% compared to 3.41% in 2020. Our cost of funds improved for fourth quarter 2021 to 0.30% from 0.33% for third quarter 2021 and 0.60% for fourth quarter 2020. For the year ended December 31, 2021, the cost of funds was 0.38% compared to 1.04% in 2020.

Provision for Loan Losses:

The Company recorded a negative provision for loan losses for fourth quarter 2021 of $0.8 million, compared to a zero provision for third quarter 2021 and $1.6 million positive provision for fourth quarter 2020. For the year ended December 31, 2021, a negative provision for loan losses of $0.3 million was recorded, compared to $5.5 million positive provision for the corresponding period in 2020. The negative loan loss provision during the fourth quarter of 2021 was due to continued improvement in asset quality ratios, the absence of significant charge-offs, and continuing signs of an improving economy. The loan loss provision also declined during the fourth quarter of 2021 in part due to the risk of loss included in other liabilities associated with the sold portion of SBA loans, as discussed further in Noninterest Expense below. See Table 10 for additional information and trends.

Noninterest Income:

Noninterest income for fourth quarter 2021 was $5.3 million compared to $5.5 million for third quarter 2021 and $3.4 million for fourth quarter 2020. For the year ended December 31, 2021, noninterest income was $19.6 million compared to $9.6 million in 2020. The largest contributor to noninterest income continues to be gains on sales of loans. Sales of SBA loans were $42.2 million with an average premium percentage received of 11.1% during the fourth quarter of 2021, compared with SBA loan sales of $42.0 million with an average premium percentage received of 11.5% during the third quarter of 2021 and SBA loan sales of $20.4 million with an average premium percentage received of 10.7% during the fourth quarter of 2020. For the year ended December 31, 2021, the gain on sale of SBA loans was $14.9 million compared to $4.6 million for the corresponding period in 2020.

Noninterest Expense:

Noninterest expense for fourth quarter 2021 was $11.4 million compared to $10.6 million for third quarter 2021 and $8.4 million for fourth quarter 2020. For the year ended December 31, 2021, noninterest expense was $40.3 million compared to $32.9 million for the corresponding period in 2020. The increase in noninterest expense in the fourth quarter of 2021 was largely due to an additional provision for loss of $800 thousand on the repurchase of SBA loans sold. The risk of loss associated with these loans had been included in the allowance for loan losses in prior quarters. The increase in noninterest expense in 2021 compared to 2020 was primarily driven by increases in merger related expense, donations to CBB Bank Foundation, and third party processing costs along with the result of the inclusion of the operations of the acquired Ohana Pacific Bank for the last six months of 2021.

Income Taxes:

The Company’s effective tax rate for fourth quarter 2021 was 27.1% compared to 28.6% for third quarter 2021 and 29.0% for fourth quarter 2020. For the year ended December 31, 2021, the effective tax rate was 28.2% compared to 29.8% in 2020.

Balance Sheet:

Investment Securities:

Investment securities were $84.2 million at December 31, 2021, a decrease from $86.4 million at September 30, 2021 and from $85.9 million from December 31, 2020. The decreases were due to net principal paydowns. There were no portfolio additions in the fourth quarter 2021.

Loans Receivable:

Loans receivable (including loans held for sale) at December 31, 2021 was $1.4 billion, an increase of $7.2 million, or 0.5%, from September 30, 2021, and an increase of $296.7 million, or 26.9% from December 31, 2020. The increase in loan balances in 2021 compared with 2020 was in part due to the $149.2 million in loans that were acquired in the Ohana Pacific Bank merger at July 1, 2021.

Loan payment deferments for 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 December 31, 2021, three loans totaling $26.7 million remain on modified payment terms, a $3.0 million decrease from the $29.7 million level of such loans at September 30, 2021 and down from $298.7 million of such loans at their peak at June 30, 2020. All three loans that remained on modified payment terms as of December 31, 2021 are scheduled to return to their regular payment terms in January 2022.

Our weighted average loan-to-value ratio of Commercial Real Estate loans was 72.2% at December 31, 2021. Excluding SBA loans, our weighted average loan-to-value ratio of CRE loans was 55.1%. For additional information, please go to www.cbb-bank.com under tab “About Us” and select “Investors Relations” to see 4Q 2021 Overview and COVID-19 update presentation.

Paycheck Protection Program (PPP):

PPP loans totaled $35.4 million at December 31, 2021. Net unearned fees as of December 31, 2021 were $0.9 million and are being accreted to income based on the two-year contractual maturity. The SBA approved $25.5 million in PPP loan forgiveness applications processed for our PPP loans in fourth quarter 2021.

Allowance for Loan Losses and Asset Quality:

The allowance for loan losses at December 31, 2021 was $14.2 million, or 1.14% of portfolio loans, compared to $15.0 million, or 1.19% of portfolio loans, at September 30, 2021. Excluding PPP loans of $35.4 million, which are government guaranteed, the allowance for loan losses at December 31, 2021 was 1.18% compared to 1.26% at September 30, 2021. Non-performing loans as of December 31, 2021 were $747 thousand, down from $768 thousand at September 30, 2021. Loans with payment deferments are considered performing loans in accordance with regulatory guidance. Our coverage ratio of allowance for loan losses to nonperforming assets continues to exceed 1800%. For additional information, please go to www.cbb-bank.com under tab “About Us” and select “Investors Relations” to see 4Q 2021 Overview and COVID-19 update presentation.

SBA Loans Held for Sale:

SBA loans held for sale at December 31, 2021 were $158.1 million, compared to $136.4 million at September 30 2021 and $59.1 million at December 31, 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 $1.6 billion at December 31, 2021, down $108.0 million from September 30, 2021 and up $459.0 million from December 31, 2020. Noninterest-bearing demand deposits (DDAs) decreased $50.7 million, or 7.6%, from September 30, 2021 and increased $284.6 million, or 84.9%, from December 31, 2020. DDAs were 40.5% of total deposits at December 31, 2021 compared to 40.9% at September 30, 2021 and 30.5% at December 31, 2020. The decrease in DDA deposits in the fourth quarter of 2021 was due a decline in the escrow related deposits managed by the Bank’s Specialty Deposit Group. The increase in DDA at December 31, 2021 compared with the prior year includes both increased balances with the Specialty Deposit Group and the deposits added in the acquisition of Ohana Pacific Bank.

NOW and MMDA decreased $51.2 million, or 13.6%, from September 30, 2021 and increased $64.9 million, or 24.9% from December 31, 2020. Time deposits decreased $6.9 million, or 1.3% from September 30, 2021 and increased $73.8 million, or 16.3%, from December 31, 2020. Our time deposits at December 30, 2021 were $525.7 million, or 33.7% of total deposits, down from $532.6 million, or 32.0% of total deposits at September 30, 2021 and up from $451.9 million, or 41.1% of total deposits at December 31, 2020. The increases in NOW, MMDA and time deposit balances during 2021 compared with the prior year were primarily attributable to the completion of the merger with Ohana Pacific Bank during the third quarter.

Borrowings:

Borrowings at December 31, 2021 consisted of $50.0 million of Federal Home Loan Bank of San Francisco (FHLB-SF) advances and were unchanged from the balance of FHLB-SF advances at September 30, 2021. Borrowings at December 31, 2020 included of $95.0 million of FHLB-SF advances and $10.0 million of Pacific Coast Bankers Bank borrowings.

Capital:

Stockholders’ equity was $185.2 million at December 31, 2021, representing an increase of $6.9 million, or 3.9%, over stockholders’ equity of $178.3 million at September 30, 2021. Tangible book value per share at December 31, 2021 was $17.76 compared with $17.08 at September 30, 2021, an increase of $0.68 per share, or 4.0%.

All of our regulatory capital ratios increased at December 31, 2021 continue to exceed the minimum levels required to be considered “Well Capitalized” as defined for bank regulatory purposes and remain in compliance with the fully phased-in Basel III requirements, which went into effect on January 1, 2020, as shown on Table 11 in this press release. Our Common Equity Tier 1 risked-based capital ratio at December 31, 2021 was 13.84% at the Company level and 13.83% 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 December 31, 2021, the Bank has ten full-service branches in Los Angeles and Orange Counties in California, Dallas County in Texas and Honolulu, Hawaii; two SBA regional offices in Los Angeles and Dallas Counties; and five loan production offices in Texas, Georgia, Colorado and Washington.

For additional information, please go to www.cbb-bank.com under tab “About Us” and select “Investors Relations” to see 4Q 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 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 Twelve Months Ended

December 31,

 

September 30,

 

$

%

 

December 31,

 

$

%

 

December 31,

 

December 31,

 

$

%

2021

 

2021

 

Change

Change

 

2020

 

Change

Change

 

2021

 

2020

 

Change

Change

 
Interest income

$

17,553

 

$

17,437

 

$

116

 

0.7

%

$

13,613

 

$

3,940

 

28.9

%

$

64,285

 

$

54,504

 

$

9,781

 

17.9

%

Interest expense

 

1,265

 

 

1,337

 

 

(72

)

(5.4

%)

 

1,830

 

 

(565

)

(30.9

%)

 

5,493

 

 

11,711

 

 

(6,218

)

(53.1

%)

Net interest income

 

16,288

 

 

16,100

 

 

188

 

1.2

%

 

11,783

 

 

4,505

 

38.2

%

 

58,792

 

 

42,793

 

 

15,999

 

37.4

%

 
Provision for loan losses

 

(800

)

 

-

 

 

(800

)

(100.0

%)

 

1,600

 

 

(2,400

)

(150.0

%)

 

(300

)

 

5,500

 

 

(5,800

)

(105.5

%)

Net interest income after provision for loan losses

 

17,088

 

 

16,100

 

 

988

 

6.1

%

 

10,183

 

 

6,905

 

67.8

%

 

59,092

 

 

37,293

 

 

21,799

 

58.5

%

 
Gain on sale of loans

 

4,151

 

 

4,305

 

 

(154

)

(3.6

%)

 

1,484

 

 

2,667

 

179.7

%

 

14,900

 

 

4,594

 

 

10,306

 

224.3

%

Gain (loss) on sale of OREO

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

3

 

 

(3

)

(100.0

%)

SBA servicing fee income, net

 

683

 

 

698

 

 

(15

)

(2.1

%)

 

701

 

 

(18

)

(2.6

%)

 

2,850

 

 

2,759

 

 

91

 

3.3

%

Reversal of valuation allowance on servicing assets

 

-

 

 

-

 

 

-

 

-

 

 

894

 

 

(894

)

(100.0

%)

 

-

 

 

894

 

 

(894

)

(100.0

%)

Service charges and other income

 

499

 

 

540

 

 

(41

)

(7.6

%)

 

364

 

 

135

 

37.1

%

 

1,813

 

 

1,396

 

 

417

 

29.9

%

Noninterest income

 

5,333

 

 

5,543

 

 

(210

)

(3.8

%)

 

3,443

 

 

1,890

 

54.9

%

 

19,563

 

 

9,646

 

 

9,917

 

102.8

%

 
Salaries and employee benefits

 

6,614

 

 

6,500

 

 

114

 

1.8

%

 

5,477

 

 

1,137

 

20.8

%

 

23,967

 

 

20,744

 

 

3,223

 

15.5

%

Occupancy and equipment

 

1,028

 

 

1,067

 

 

(39

)

(3.7

%)

 

936

 

 

92

 

9.8

%

 

4,019

 

 

3,763

 

 

256

 

6.8

%

Marketing expense

 

111

 

 

287

 

 

(176

)

(61.3

%)

 

133

 

 

(22

)

(16.5

%)

 

994

 

 

1,135

 

 

(141

)

(12.4

%)

Professional expense

 

368

 

 

495

 

 

(127

)

(25.7

%)

 

478

 

 

(110

)

(23.0

%)

 

1,809

 

 

1,916

 

 

(107

)

(5.6

%)

Merger related expense

 

454

 

 

450

 

 

4

 

0.9

%

 

-

 

 

454

 

100.0

%

 

2,185

 

 

98

 

 

2,087

 

2129.6

%

Other expenses

 

2,850

 

 

1,807

 

 

1,043

 

57.7

%

 

1,369

 

 

1,481

 

108.2

%

 

7,313

 

 

5,200

 

 

2,113

 

40.6

%

Noninterest expense

 

11,425

 

 

10,606

 

 

819

 

7.7

%

 

8,393

 

 

3,032

 

36.1

%

 

40,287

 

 

32,856

 

 

7,431

 

22.6

%

 
Income before income tax expense

 

10,996

 

 

11,037

 

 

(41

)

(0.4

%)

 

5,233

 

 

5,763

 

110.1

%

 

38,368

 

 

14,083

 

 

24,285

 

172.4

%

 
Income tax expense

 

2,984

 

 

3,156

 

 

(172

)

(5.4

%)

 

1,519

 

 

1,465

 

96.4

%

 

10,838

 

 

4,202

 

 

6,636

 

157.9

%

 
Net income

$

8,012

 

$

7,881

 

$

131

 

1.7

%

$

3,714

 

$

4,298

 

115.7

%

$

27,530

 

$

9,881

 

$

17,649

 

178.6

%

 
Effective tax rate

 

27.1

%

 

28.6

%

 

(1.5

%)

(5.1

%)

 

29.0

%

 

(1.9

%)

(6.5

%)

 

28.2

%

 

29.8

%

 

(1.6

%)

(5.3

%)

 
Outstanding number of shares

 

10,284,962

 

 

10,284,962

 

 

-

 

-

 

 

10,247,292

 

 

37,670

 

0.4

%

 

10,284,962

 

 

10,247,292

 

 

37,670

 

0.4

%

 
Weighted average shares for basic EPS

 

10,284,962

 

 

10,280,016

 

 

4,946

 

0.0

%

 

10,247,292

 

 

37,670

 

0.4

%

 

10,268,940

 

 

10,238,237

 

 

30,703

 

0.3

%

Weighted average shares for diluted EPS

 

10,424,771

 

 

10,427,687

 

 

(2,916

)

(0.0

%)

 

10,285,410

 

 

139,361

 

1.4

%

 

10,389,885

 

 

10,291,209

 

 

98,676

 

1.0

%

 
Basic EPS

$

0.78

 

$

0.77

 

$

0.01

 

1.3

%

$

0.36

 

$

0.42

 

116.7

%

$

2.68

 

$

0.97

 

$

1.71

 

176.3

%

Diluted EPS

$

0.77

 

$

0.75

 

$

0.02

 

2.7

%

$

0.36

 

$

0.41

 

113.9

%

$

2.65

 

$

0.96

 

$

1.69

 

176.0

%

 
Return on average assets

 

1.68

%

 

1.73

%

 

(0.05

%)

(2.9

%)

 

1.07

%

 

0.61

%

57.0

%

 

1.68

%

 

0.77

%

 

0.91

%

118.2

%

Return on average equity

 

17.54

%

 

17.87

%

 

(0.33

%)

(1.9

%)

 

9.32

%

 

8.22

%

88.2

%

 

15.98

%

 

6.41

%

 

9.57

%

149.3

%

 
Efficiency ratio¹

 

52.84

%

 

49.00

%

 

3.84

%

7.8

%

 

55.12

%

 

(2.28

%)

(4.1

%)

 

51.42

%

 

62.66

%

 

(11.24

%)

(17.9

%)

Yield on interest-earning assets²

 

3.76

%

 

3.92

%

 

(0.16

%)

(4.1

%)

 

4.01

%

 

(0.25

%)

(6.2

%)

 

4.01

%

 

4.34

%

 

(0.33

%)

(7.6

%)

Cost of funds

 

0.30

%

 

0.33

%

 

(0.03

%)

(9.1

%)

 

0.60

%

 

(0.30

%)

(50.0

%)

 

0.38

%

 

1.04

%

 

(0.66

%)

(63.5

%)

Net interest margin²

 

3.49

%

 

3.62

%

 

(0.13

%)

(3.6

%)

 

3.48

%

 

0.01

%

0.3

%

 

3.67

%

 

3.41

%

 

0.26

%

7.6

%

¹

Represents the ratio of noninterest expense less other real estate owned operations to the sum of net interest income before provision for credit losses and total noninterest income, less gains/(loss) on sale of securities, other-than-temporary impairment recovery/(loss) on investment securities and gain/(loss) from other real estate owned.

²

Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate

BALANCE SHEET, CAPITAL AND OTHER DATA (Unaudited) - Table 2
(Dollars in thousands)
 

December 31,

 

September 30,

 

$

 

%

 

December 31,

 

$

 

%

2021

 

2021

 

Change

 

Change

 

2020

 

Change

 

Change

ASSETS
Cash and due from banks

$

7,702

 

$

11,621

 

$

(3,919

)

(33.7

%)

$

8,750

 

$

(1,048

)

(12.0

%)

Interest-earning deposits at the FRB and other banks

 

284,583

 

 

386,087

 

 

(101,504

)

(26.3

%)

 

153,908

 

 

130,675

 

84.9

%

Investment securities¹

 

84,238

 

 

86,440

 

 

(2,202

)

(2.5

%)

 

85,914

 

 

(1,676

)

(2.0

%)

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

 

158,128

 

 

136,394

 

 

21,734

 

15.9

%

 

59,077

 

 

99,051

 

167.7

%

 
Loans receivable

 

1,241,319

 

 

1,255,814

 

 

(14,495

)

(1.2

%)

 

1,043,662

 

 

197,657

 

18.9

%

Allowance for loan losses

 

(14,192

)

 

(15,000

)

 

808

 

5.4

%

 

(14,366

)

 

174

 

1.2

%

Loans receivable, net

 

1,227,127

 

 

1,240,814

 

 

(13,687

)

(1.1

%)

 

1,029,296

 

 

197,831

 

19.2

%

 
OREO

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

-

 

-

 

Restricted stock investments

 

8,850

 

 

8,850

 

 

-

 

-

 

 

8,196

 

 

654

 

8.0

%

Servicing assets

 

10,632

 

 

10,392

 

 

240

 

2.3

%

 

9,873

 

 

759

 

7.7

%

Goodwill

 

2,185

 

 

2,269

 

 

(84

)

(3.7

%)

 

-

 

 

2,185

 

100.0

%

Intangible assets

 

360

 

 

375

 

 

(15

)

(4.0

%)

 

-

 

 

360

 

100.0

%

Other assets

 

24,996

 

 

25,859

 

 

(863

)

(3.3

%)

 

20,233

 

 

4,763

 

23.5

%

Total assets

$

1,808,801

 

$

1,909,101

 

$

(100,300

)

(5.3

%)

$

1,375,247

 

$

433,554

 

31.5

%

 
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing

$

619,774

 

$

670,489

 

$

(50,715

)

(7.6

%)

$

335,219

 

$

284,555

 

84.9

%

Interest-bearing

 

938,338

 

 

995,574

 

 

(57,236

)

(5.7

%)

 

763,906

 

 

174,432

 

22.8

%

Total deposits

 

1,558,112

 

 

1,666,063

 

 

(107,951

)

(6.5

%)

 

1,099,125

 

 

458,987

 

41.8

%

 
FHLB advances and other borrowing

 

50,000

 

 

50,000

 

 

-

 

-

 

 

105,000

 

 

(55,000

)

(52.4

%)

Other liabilities

 

15,447

 

 

14,719

 

 

728

 

4.9

%

 

11,145

 

 

4,302

 

38.6

%

Total liabilities

 

1,623,559

 

 

1,730,782

 

 

(107,223

)

(6.2

%)

 

1,215,270

 

 

408,289

 

33.6

%

 
Stockholders' Equity

 

185,242

 

 

178,319

 

 

6,923

 

3.9

%

 

159,977

 

 

25,265

 

15.8

%

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$

1,808,801

 

$

1,909,101

 

$

(100,300

)

(5.3

%)

$

1,375,247

 

$

433,554

 

31.5

%

 
CAPITAL RATIOS
Leverage ratio
Company

 

9.55

%

 

9.61

%

 

(0.06

%)

(0.6

%)

 

11.56

%

 

(2.01

%)

(17.4

%)

Bank

 

9.55

%

 

9.60

%

 

(0.05

%)

(0.5

%)

 

11.54

%

 

(1.99

%)

(17.3

%)

Common equity tier 1 risk-based capital ratio
Company

 

13.84

%

 

13.61

%

 

0.23

%

1.7

%

 

15.01

%

 

(1.17

%)

(7.8

%)

Bank

 

13.83

%

 

13.59

%

 

0.24

%

1.7

%

 

14.97

%

 

(1.14

%)

(7.6

%)

Tier 1 risk-based capital ratio
Company

 

13.84

%

 

13.61

%

 

0.23

%

1.7

%

 

15.01

%

 

(1.17

%)

(7.8

%)

Bank

 

13.83

%

 

13.59

%

 

0.24

%

1.7

%

 

14.97

%

 

(1.14

%)

(7.6

%)

Total risk-based capital ratio
Company

 

14.99

%

 

14.86

%

 

0.13

%

0.9

%

 

16.26

%

 

(1.27

%)

(7.8

%)

Bank

 

14.98

%

 

14.84

%

 

0.14

%

1.0

%

 

16.22

%

 

(1.24

%)

(7.7

%)

Tangible common equity per share

$

17.76

 

$

17.08

 

$

0.68

 

4.0

%

$

15.61

 

$

2.15

 

13.8

%

Loan-to-Deposit (LTD) ratio

 

79.67

%

 

75.38

%

 

4.29

%

5.7

%

 

94.95

%

 

(15.28

%)

(16.1

%)

Nonperforming assets

$

747

 

$

768

 

$

(21

)

(2.7

%)

$

2,361

 

$

(1,614

)

(68.4

%)

Nonperforming assets as a % of loans receivable

 

0.06

%

 

0.06

%

 

-

 

-

 

 

0.23

%

 

(0.17

%)

(73.9

%)

ALLL as a % of loans receivable

 

1.14

%

 

1.19

%

 

(0.05

%)

(4.2

%)

 

1.38

%

 

(0.24

%)

(17.4

%)

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

 

1.18

%

 

1.26

%

 

(0.08

%)

(6.3

%)

 

1.51

%

 

(0.33

%)

(21.9

%)

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

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

2021

 

2021

 

2021

 

2021

 

2020

 
Interest income

$

17,553

 

$

17,437

 

$

14,923

 

$

14,372

 

$

13,613

 

Interest expense

 

1,265

 

 

1,337

 

 

1,358

 

 

1,533

 

 

1,830

 

Net interest income

 

16,288

 

 

16,100

 

 

13,565

 

 

12,839

 

 

11,783

 

 
Provision for loan losses

 

(800

)

 

-

 

 

-

 

 

500

 

 

1,600

 

Net interest income after provision for loan losses

 

17,088

 

 

16,100

 

 

13,565

 

 

12,339

 

 

10,183

 

 
Gain on sale of loans

 

4,151

 

 

4,305

 

 

3,988

 

 

2,456

 

 

1,484

 

Gain (loss) on sale of OREO

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

SBA servicing fee income, net

 

683

 

 

698

 

 

622

 

 

847

 

 

701

 

Reversal of valuation allowance on servicing assets

 

-

 

 

-

 

 

-

 

 

-

 

 

894

 

Service charges and other income

 

499

 

 

540

 

 

395

 

 

379

 

 

364

 

Noninterest income

 

5,333

 

 

5,543

 

 

5,005

 

 

3,682

 

 

3,443

 

 
Salaries and employee benefits

 

6,614

 

 

6,500

 

 

6,000

 

 

4,853

 

 

5,477

 

Occupancy and equipment

 

1,028

 

 

1,067

 

 

945

 

 

979

 

 

936

 

Marketing expense

 

111

 

 

287

 

 

309

 

 

287

 

 

133

 

Professional expense

 

368

 

 

495

 

 

491

 

 

455

 

 

478

 

Merger related expense

 

454

 

 

450

 

 

600

 

 

681

 

 

40

 

Other expenses

 

2,850

 

 

1,807

 

 

1,356

 

 

1,300

 

 

1,329

 

Noninterest expense

 

11,425

 

 

10,606

 

 

9,701

 

 

8,555

 

 

8,393

 

 
Income before income tax expense

 

10,996

 

 

11,037

 

 

8,869

 

 

7,466

 

 

5,233

 

 
Income tax expense

 

2,984

 

 

3,156

 

 

2,566

 

 

2,132

 

 

1,519

 

 
Net income

$

8,012

 

$

7,881

 

$

6,303

 

$

5,334

 

$

3,714

 

 
Effective tax rate

 

27.1

%

 

28.6

%

 

28.9

%

 

28.6

%

 

29.0

%

 
Outstanding number of shares

 

10,284,962

 

 

10,284,962

 

 

10,279,962

 

 

10,247,292

 

 

10,247,292

 

 
Weighted average shares for basic EPS

 

10,284,962

 

 

10,280,016

 

 

10,262,956

 

 

10,247,292

 

 

10,247,292

 

Weighted average shares for diluted EPS

 

10,424,771

 

 

10,427,687

 

 

10,392,427

 

 

10,300,518

 

 

10,285,410

 

 
Basic EPS

$

0.78

 

$

0.77

 

$

0.61

 

$

0.52

 

$

0.36

 

Diluted EPS

$

0.77

 

$

0.75

 

$

0.61

 

$

0.52

 

$

0.36

 

FIVE-QUARTER SALARIES BENEFIT METRICS (Unaudited) - Table 4
(Dollars in thousands)
 
At or for the Three Months Ended

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

2021

 

2021

 

2021

 

2021

 

2020

 
Salaries and benefits

$

6,614

 

$

6,500

 

$

6,000

 

$

4,853

 

$

5,477

 

FTE at the end of period

 

205

 

 

200

 

 

183

 

 

186

 

 

183

 

Average FTE during the period

 

201

 

 

202

 

 

182

 

 

187

 

 

184

 

Salaries and benefits/average FTE¹

$

131

 

$

127

 

$

132

 

$

105

 

$

118

 

Salaries and benefits/average assets¹

 

1.39

%

 

1.43

%

 

1.33

%

 

1.44

%

 

1.58

%

Noninterest expense/average assets¹

 

2.40

%

 

2.33

%

 

2.16

%

 

2.34

%

 

2.42

%

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

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

2021

 

2021

 

2021

 

2021

 

2020

ASSETS
Cash and due from banks

$

7,702

 

$

11,621

 

$

10,509

 

$

9,215

 

$

8,750

 

Interest-earning deposits at the FRB and other banks

 

284,583

 

 

386,087

 

 

240,932

 

 

129,713

 

 

153,908

 

Investment securities¹

 

84,238

 

 

86,440

 

 

82,354

 

 

83,409

 

 

85,914

 

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

 

158,128

 

 

136,394

 

 

96,554

 

 

76,066

 

 

59,077

 

 
Loans receivable

 

1,241,319

 

 

1,255,814

 

 

1,133,371

 

 

1,113,629

 

 

1,043,662

 

Allowance for loan losses

 

(14,192

)

 

(15,000

)

 

(14,908

)

 

(14,888

)

 

(14,366

)

Loans receivable, net

 

1,227,127

 

 

1,240,814

 

 

1,118,463

 

 

1,098,741

 

 

1,029,296

 

 
OREO

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Restricted stock investments

 

8,850

 

 

8,850

 

 

8,850

 

 

8,196

 

 

8,196

 

Servicing assets

 

10,632

 

 

10,392

 

 

10,189

 

 

10,000

 

 

9,873

 

Goodwill

 

2,185

 

 

2,269

 

 

-

 

 

-

 

 

-

 

Intangible assets

 

360

 

 

375

 

 

-

 

 

-

 

 

-

 

Other assets

 

24,996

 

 

25,859

 

 

45,071

 

 

21,431

 

 

20,233

 

Total assets

$

1,808,801

 

$

1,909,101

 

$

1,612,922

 

$

1,436,771

 

$

1,375,247

 

 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing

$

619,774

 

$

670,489

 

$

572,284

 

$

408,738

 

$

335,219

 

Interest-bearing

 

938,338

 

 

995,574

 

 

806,397

 

 

782,778

 

 

763,906

 

Total deposits

 

1,558,112

 

 

1,666,063

 

 

1,378,681

 

 

1,191,516

 

 

1,099,125

 

 
FHLB advances

 

50,000

 

 

50,000

 

 

50,000

 

 

65,000

 

 

105,000

 

Other liabilities

 

15,447

 

 

14,719

 

 

13,026

 

 

15,170

 

 

11,145

 

Total liabilities

 

1,623,559

 

 

1,730,782

 

 

1,441,707

 

 

1,271,686

 

 

1,215,270

 

 
Stockholders' Equity

 

185,242

 

 

178,319

 

 

171,215

 

 

165,085

 

 

159,977

 

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$

1,808,801

 

$

1,909,101

 

$

1,612,922

 

$

1,436,771

 

$

1,375,247

 

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

$

23,939

1.9

%

$

21,725

1.7

%

$

18,753

1.7

%

$

15,858

1.4

%

$

13,685

1.3

%

Commercial real estate

 

978,995

78.9

%

 

971,387

77.4

%

 

893,700

78.9

%

 

855,861

76.9

%

 

820,355

78.6

%

Commercial and industrial

 

169,489

13.7

%

 

198,217

15.8

%

 

217,350

19.2

%

 

237,865

21.4

%

 

205,883

19.7

%

Home mortgage

 

61,030

4.9

%

 

60,075

4.8

%

 

-

-

 

 

-

-

 

 

-

-

 

Consumer

 

4,269

0.3

%

 

2,185

0.2

%

 

2,236

0.2

%

 

3,504

0.3

%

 

2,439

0.2

%

Gross loans

 

1,237,722

99.7

%

 

1,253,589

99.8

%

 

1,132,039

99.9

%

 

1,113,088

100.0

%

 

1,042,362

99.9

%

 
Net deferred loan fees/costs

 

3,597

0.3

%

 

2,225

0.2

%

 

1,332

0.1

%

 

541

0.0

%

 

1,300

0.1

%

Loans receivable

$

1,241,319

100.0

%

$

1,255,814

100.0

%

$

1,133,371

100.0

%

$

1,113,629

100.0

%

$

1,043,662

100.0

%

 
Loans held-for-sale

$

158,128

$

136,394

$

96,554

$

76,066

$

59,077

Loans receivable, including loans held-for-sale

$

1,399,447

$

1,392,208

$

1,229,925

$

1,189,695

$

1,102,739

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

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

2021

 

2021

 

2021

 

2021

 

2020

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

$

136,394

 

$

96,554

 

$

76,066

 

$

59,077

 

$

53,755

 

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

 

68,136

 

 

82,303

 

 

62,864

 

 

48,152

 

 

26,837

 

SBA loans sold during the quarter/year

 

(42,210

)

 

(42,019

)

 

(42,163

)

 

(30,238

)

 

(20,382

)

SBA loans principal payment, net of advance

 

(4,193

)

 

(444

)

 

(213

)

 

(925

)

 

(1,133

)

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

$

158,128

 

$

136,394

 

$

96,554

 

$

76,066

 

$

59,077

 

 
Gain on sale of SBA loans

$

4,151

 

$

4,305

 

$

4,305

 

$

3,988

 

$

2,456

 

Premium on sale (weighted average)

 

11.1

%

 

11.5

%

 

11.9

%

 

10.9

%

 

10.7

%

 
SBA loan production

$

82,448

 

$

93,986

 

$

78,058

 

$

123,762

 

$

37,116

 

Non-PPP loans

 

82,448

 

 

93,986

 

 

75,065

 

 

71,204

 

 

37,116

 

PPP loans

 

-

 

 

-

 

 

2,994

 

 

52,558

 

 

-

 

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

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

2021

 

2021

 

2021

 

2021

 

2020

 
 
SBA servicing assets @ beginning of the quarter/year

$

10,392

 

$

10,189

 

$

10,000

 

$

9,873

 

$

9,043

 

 
Newly added SBA servicing assets from SBA loans sold

 

1,006

 

 

920

 

 

897

 

 

635

 

 

441

 

Regular quarterly/annual servicing assets amortization

 

(453

)

 

(421

)

 

(422

)

 

(358

)

 

(392

)

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

 

(313

)

 

(296

)

 

(286

)

 

(150

)

 

(113

)

 
Subtotal before impairment

 

10,632

 

 

10,392

 

 

10,189

 

 

10,000

 

 

8,979

 

 
Reversal of valuation allowance on servicing assets

 

-

 

 

-

 

 

-

 

 

-

 

 

894

 

 
SBA servicing assets @ the end of the quarter/year

$

10,632

 

$

10,392

 

$

10,189

 

$

10,000

 

$

9,873

 

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

$

619,774

39.8%

$

670,489

40.2%

$

572,284

41.5%

$

408,738

34.3%

$

335,219

30.5%

Interest-bearing demand

 

10,723

0.7%

 

10,904

0.7%

 

-

-

 

-

-

 

-

-

NOW & MMDA

 

325,313

20.9%

 

376,549

22.6%

 

291,437

21.1%

 

270,531

22.7%

 

260,374

23.7%

Savings

 

76,588

4.9%

 

75,497

4.5%

 

41,284

3.0%

 

46,280

3.9%

 

51,659

4.7%

TCDs of $250K and under

 

259,758

16.7%

 

264,130

15.9%

 

219,174

15.9%

 

226,611

19.0%

 

232,192

21.1%

TCDs of $250K over

 

174,939

11.2%

 

177,477

10.7%

 

158,485

11.5%

 

151,094

12.7%

 

150,143

13.7%

Wholesale TCDs

 

91,017

5.8%

 

91,017

5.5%

 

96,017

7.0%

 

88,262

7.4%

 

69,538

6.3%

Total Deposits

$

1,558,112

100.0%

$

1,666,063

100.0%

$

1,378,681

100.0%

$

1,191,516

100.0%

$

1,099,125

100.0%

 
Recap:
Noninterest-bearing demand

$

619,774

39.8%

$

670,489

40.2%

$

572,284

41.5%

$

408,738

34.3%

$

335,219

30.5%

Interest-bearing demand

 

10,723

0.7%

 

10,904

0.7%

 

-

-

 

-

-

 

-

-

NOW & MMDA

 

325,313

20.9%

 

376,549

22.6%

 

291,437

21.1%

 

270,531

22.7%

 

260,374

23.7%

Savings

 

76,588

4.9%

 

75,497

4.5%

 

41,284

3.0%

 

46,280

3.9%

 

51,659

4.7%

TCDs of $250K and under

 

259,758

16.7%

 

264,130

15.9%

 

219,174

15.9%

 

226,611

19.0%

 

232,192

21.1%

Core Deposits

 

1,292,156

82.9%

 

1,397,569

83.9%

 

1,124,179

81.5%

 

952,160

79.9%

 

879,444

80.0%

 
TCDs of $250K over

 

174,939

11.2%

 

177,477

10.7%

 

158,485

11.5%

 

151,094

12.7%

 

150,143

13.7%

Wholesale TCDs

 

91,017

5.8%

 

91,017

5.5%

 

96,017

7.0%

 

88,262

7.4%

 

69,538

6.3%

Noncore Deposits

 

265,956

17.1%

 

268,494

16.1%

 

254,502

18.5%

 

239,356

20.1%

 

219,681

20.0%

Total Deposits

$

1,558,112

100.0%

$

1,666,063

100.0%

$

1,378,681

100.0%

$

1,191,516

100.0%

$

1,099,125

100.0%

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

4th Qtr.

 

3rd Qtr.

 

2nd Qtr.

 

1st Qtr.

 

4th Qtr.

2021

 

2021

 

2021

 

2021

 

2020

Allowance for Loan Losses
Balance at beginning of period

$

15,000

 

$

14,908

 

$

14,888

 

$

14,366

 

$

13,614

 

Provision for loan losses

 

(800

)

 

-

 

 

-

 

 

500

 

 

1,600

 

Charge-offs

 

(89

)

 

-

 

 

-

 

 

(2

)

 

(907

)

Recoveries

 

81

 

 

92

 

 

20

 

 

24

 

 

59

 

Balance at the end of period

$

14,192

 

$

15,000

 

$

14,908

 

$

14,888

 

$

14,366

 

 
Nonperforming Assets:¹
Over 90 days still accruing

$

-

 

$

-

 

$

-

 

$

-

 

$

2

 

Nonaccrual loans

 

747

 

 

768

 

 

1,339

 

 

1,347

 

 

2,359

 

Total nonperforming loans

 

747

 

 

768

 

 

1,339

 

 

1,347

 

 

2,361

 

 
Other real estate owned

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total nonperforming assets

$

747

 

$

768

 

$

1,339

 

$

1,347

 

$

2,361

 

 
Classified Assets:¹
Substandard

$

11,156

 

$

10,672

 

$

10,052

 

$

9,843

 

$

18,920

 

Doubtful

 

-

 

 

-

 

 

-

 

 

-

 

 

68

 

Loss

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total classified loans

$

11,156

 

$

10,672

 

$

10,052

 

$

9,843

 

$

18,988

 

 
Other real estate owned

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total classified assets

$

11,156

 

$

10,672

 

$

10,052

 

$

9,843

 

$

18,988

 

 
Performing TDR loans:

$

3,521

 

$

3,658

 

$

3,776

 

$

2,516

 

$

2,847

 

 
Delinquent Loans:¹
Loans 30-89 days past due

$

267

 

$

1,688

 

$

2,524

 

$

1,681

 

$

3,095

 

90 days or more past due and still accruing

 

-

 

 

-

 

 

-

 

 

-

 

 

2

 

Nonaccrual

 

747

 

 

768

 

 

1,339

 

 

1,347

 

 

2,359

 

Total delinquent loans

$

1,014

 

$

2,456

 

$

3,863

 

$

3,028

 

$

5,456

 

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

 

0.00

%

 

(0.03

%)

 

(0.01

%)

 

(0.01

%)

 

0.32

%

Nonaccrual loans to loans receivable

 

0.06

%

 

0.06

%

 

0.12

%

 

0.12

%

 

0.23

%

Nonperforming loans to loans receivable

 

0.06

%

 

0.06

%

 

0.12

%

 

0.12

%

 

0.23

%

Nonperforming assets to total assets

 

0.04

%

 

0.04

%

 

0.08

%

 

0.09

%

 

0.17

%

Classified loans to loans receivable

 

0.90

%

 

0.85

%

 

0.89

%

 

0.88

%

 

1.82

%

Classified loans to Tier 1 and ALLL

 

5.67

%

 

5.53

%

 

5.40

%

 

5.47

%

 

10.89

%

Classified assets to total assets

 

0.62

%

 

0.56

%

 

0.62

%

 

0.69

%

 

1.38

%

Classified assets to Tier 1 and ALLL

 

5.67

%

 

5.53

%

 

5.40

%

 

5.47

%

 

10.89

%

ALLL to loans receivable

 

1.14

%

 

1.19

%

 

1.32

%

 

1.34

%

 

1.38

%

ALLL to loans receivable exc. SBA PPP loans

 

1.18

%

 

1.26

%

 

1.42

%

 

1.48

%

 

1.51

%

ALLL to nonaccrual loans

 

1899.87

%

 

1953.13

%

 

1113.37

%

 

1105.27

%

 

608.99

%

ALLL to nonperforming loans

 

1899.87

%

 

1953.13

%

 

1113.37

%

 

1105.27

%

 

608.47

%

ALLL to nonperforming assets

 

1899.87

%

 

1953.13

%

 

1113.37

%

 

1105.27

%

 

608.47

%

Texas ratio ³

 

0.38

%

 

0.40

%

 

0.72

%

 

0.75

%

 

1.35

%

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

2021

 

2021

 

2021

 

2021

 

2020

             
Leverage ratio              
Company  

N/A

 

N/A

 

9.55%

 

9.61%

 

11.35%

 

11.89%

 

11.56%

Bank  

5.00%

 

4.00%

 

9.55%

 

9.60%

 

11.33%

 

11.87%

 

11.54%

Common equity tier 1 risk-based capital ratio  

 

 

 

         
Company  

N/A

 

N/A

 

13.84%

 

13.61%

 

14.39%

 

15.00%

 

15.01%

Bank  

6.50%

 

7.00%

 

13.83%

 

13.59%

 

14.37%

 

14.98%

 

14.97%

Tier 1 risk-based capital ratio  

 

 

 

         
Company  

N/A

 

N/A

 

13.84%

 

13.61%

 

14.39%

 

15.00%

 

15.01%

Bank  

8.00%

 

8.50%

 

13.83%

 

13.59%

 

14.37%

 

14.98%

 

14.97%

Total risk-based capital ratio  

 

 

 

         
Company  

N/A

 

N/A

 

14.99%

 

14.86%

 

15.64%

 

16.25%

 

16.26%

Bank  

10.00%

 

10.50%

 

14.98%

 

14.84%

 

15.62%

 

16.23%

 

16.22%

             
Tangible common equity/total assets      

10.11%

 

9.21%

 

10.62%

 

11.49%

 

11.63%

Tangible common equity per share      

$ 17.76

 

$ 17.08

 

$ 16.66

 

$ 16.11

 

$ 15.61

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

$

1,396,201

 

 

$

16,893

 

4.80

%

   

$

1,390,851

 

 

$

16,800

 

4.79

%

   

$

1,195,908

 

 

$

14,338

 

4.81

%

   

$

1,138,134

 

 

$

13,837

 

4.93

%

   

$

1,066,368

 

 

$

13,045

 

4.87

%

Investment securities²  

 

85,555

 

 

 

454

 

2.11

%

   

 

87,585

 

 

 

460

 

2.08

%

   

 

83,152

 

 

 

442

 

2.13

%

   

 

84,679

 

 

 

448

 

2.15

%

   

 

87,818

 

 

 

474

 

2.15

%

Interest-earning deposits at the FRB and other banks  

 

365,501

 

 

 

144

 

0.16

%

   

 

282,512

 

 

 

112

 

0.16

%

   

 

168,677

 

 

 

54

 

0.13

%

   

 

108,127

 

 

 

36

 

0.14

%

   

 

191,703

 

 

 

59

 

0.12

%

Other earning assets  

 

8,850

 

 

 

115

 

5.16

%

   

 

8,925

 

 

 

116

 

5.16

%

   

 

8,737

 

 

 

135

 

6.20

%

   

 

8,196

 

 

 

97

 

4.80

%

   

 

8,196

 

 

 

81

 

3.93

%

Total interest-earning assets ²  

 

1,856,107

 

 

 

17,606

 

3.76

%

   

 

1,769,873

 

 

 

17,488

 

3.92

%

   

 

1,456,474

 

 

 

14,969

 

4.12

%

   

 

1,339,136

 

 

 

14,418

 

4.37

%

   

 

1,354,085

 

 

 

13,659

 

4.01

%

                                     
NONINTEREST-EARNING ASSETS                                      
Cash and due from banks  

 

13,318

 

       

 

13,079

 

       

 

10,752

 

       

 

10,025

 

       

 

10,234

 

   
Other noninterest-earning assets  

 

37,774

 

       

 

36,548

 

       

 

32,002

 

       

 

31,156

 

       

 

28,903

 

   
Total noninterest-earning assets  

 

51,092

 

       

 

49,627

 

       

 

42,754

 

       

 

41,181

 

       

 

39,137

 

   
                                     
Less: Allowance for loan losses  

 

(14,849

)

       

 

(14,958

)

       

 

(14,899

)

       

 

(14,381

)

       

 

(13,505

)

   
TOTAL ASSETS  

$

1,892,350

 

       

$

1,804,542

 

       

$

1,484,329

 

       

$

1,365,936

 

       

$

1,379,717

 

   
                                     
INTEREST-BEARING DEPOSITS                                      
Interest-bearing demand  

$

27,904

 

 

$

3

 

0.04

%

   

$

36,670

 

 

$

4

 

0.04

%

   

$

13,373

 

 

$

2

 

0.06

%

   

$

15,813

 

 

$

2

 

0.05

%

   

$

11,444

 

 

$

4

 

0.14

%

Money market  

 

338,937

 

 

 

401

 

0.47

%

   

 

312,606

 

 

 

388

 

0.49

%

   

 

263,845

 

 

 

352

 

0.54

%

   

 

265,856

 

 

 

366

 

0.56

%

   

 

240,913

 

 

 

360

 

0.59

%

Savings  

 

77,057

 

 

 

68

 

0.35

%

   

 

74,266

 

 

 

71

 

0.38

%

   

 

43,433

 

 

 

55

 

0.51

%

   

 

48,284

 

 

 

60

 

0.50

%

   

 

55,756

 

 

 

77

 

0.55

%

Time deposits  

 

527,634

 

 

 

674

 

0.51

%

   

 

542,901

 

 

 

756

 

0.55

%

   

 

469,000

 

 

 

831

 

0.71

%

   

 

451,347

 

 

 

975

 

0.88

%

   

 

447,839

 

 

 

1,236

 

1.10

%

Total interest-bearing deposits  

 

971,532

 

 

 

1,146

 

0.47

%

   

 

966,443

 

 

 

1,219

 

0.50

%

   

 

789,651

 

 

 

1,240

 

0.63

%

   

 

781,300

 

 

 

1,403

 

0.73

%

   

 

755,952

 

 

 

1,677

 

0.88

%

                                     
Borrowings  

 

50,000

 

 

 

119

 

0.94

%

   

 

50,000

 

 

 

118

 

0.94

%

   

 

51,539

 

 

 

118

 

0.92

%

   

 

65,667

 

 

 

130

 

0.80

%

   

 

88,645

 

 

 

153

 

0.69

%

Total interest-bearing liabilities  

 

1,021,532

 

 

 

1,265

 

0.49

%

   

 

1,016,443

 

 

 

1,337

 

0.52

%

   

 

841,190

 

 

 

1,358

 

0.65

%

   

 

846,967

 

 

 

1,533

 

0.73

%

   

 

844,597

 

 

 

1,830

 

0.86

%

                                     
Noninterest-bearing deposits  

 

673,154

 

       

 

597,056

 

       

 

459,695

 

       

 

343,904

 

       

 

363,937

 

   
Other liabilities  

 

16,420

 

       

 

16,046

 

       

 

13,906

 

       

 

11,942

 

       

 

12,623

 

   
                                     
Stockholders' equity  

 

181,244

 

       

 

174,997

 

       

 

169,538

 

       

 

163,123

 

       

 

158,560

 

   
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY  

$

1,892,350

 

       

$

1,804,542

 

       

$

1,484,329

 

       

$

1,365,936

 

       

$

1,379,717

 

   
                                     
Net interest income²    

$

16,341

       

$

16,151

       

$

13,611

       

$

12,885

       

$

11,829

 
                                     
Net interest spread      

3.27

%

       

3.40

%

       

3.47

%

       

3.64

%

       

3.15

%

                                     
Effect of noninterest-bearing sources      

0.22

%

       

0.22

%

       

0.28

%

       

0.26

%

       

0.33

%

                                     
Net interest margin²      

3.49

%

       

3.62

%

       

3.75

%

       

3.90

%

       

3.48

%

                                     
                                     
Cost of deposits  

$

1,644,686

 

 

$

1,146

 

0.28

%

   

$

1,563,499

 

 

$

1,219

 

0.31

%

   

$

1,249,346

 

 

$

1,240

 

0.40

%

   

$

1,125,204

 

 

$

1,403

 

0.51

%

   

$

1,119,889

 

 

$

1,677

 

0.60

%

                                     
Cost of funds  

$

1,694,686

 

 

$

1,265

 

0.30

%

   

$

1,613,499

 

 

$

1,337

 

0.33

%

   

$

1,300,885

 

 

$

1,358

 

0.42

%

   

$

1,190,871

 

 

$

1,533

 

0.52

%

   

$

1,208,534

 

 

$

1,830

 

0.60

%

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

$

15,142

4.30

%

 

$

15,032

4.29

%

 

$

12,670

4.25

%

 

$

12,148

4.33

%

 

$

11,727

4.38

%

SBA discount accretion

 

1,024

0.29

%

 

 

1,038

0.30

%

 

 

1,027

0.34

%

 

 

738

0.26

%

 

 

730

0.27

%

Prepayment penalties & late fees

 

72

0.02

%

 

 

41

0.01

%

 

 

89

0.03

%

 

 

121

0.04

%

 

 

177

0.07

%

Amortization of net deferred costs

 

655

0.19

%

 

 

689

0.20

%

 

 

552

0.19

%

 

 

830

0.30

%

 

 

411

0.15

%

As reported yield on loans

$

16,893

4.80

%

 

$

16,800

4.79

%

 

$

14,338

4.81

%

 

$

13,837

4.93

%

 

$

13,045

4.87

%

MARGIN ANALYSIS (Unaudited) - Table 14
(Dollars in thousands)
               
  Twelve Months Ended
  December 31, 2021     December 31, 2020
  Avg Balance   Interest   Yield     Avg Balance   Interest   Yield
Number of Days in the Period              
INTEREST-EARNING ASSETS              
Loans ¹  

$

1,281,283

 

 

$

61,868

 

4.83

%

   

$

1,018,407

 

 

$

51,892

 

5.10

%

Investment securities²  

 

85,251

 

 

 

1,804

 

2.12

%

   

 

91,001

 

 

 

2,072

 

2.28

%

Interest-earning deposits at the FRB and other banks  

 

232,050

 

 

 

346

 

0.15

%

   

 

143,141

 

 

 

350

 

0.24

%

Other earning assets  

 

8,679

 

 

 

463

 

5.33

%

   

 

8,195

 

 

 

376

 

4.59

%

Total interest-earning assets ²  

 

1,607,263

 

 

 

64,481

 

4.01

%

   

 

1,260,744

 

 

 

54,690

 

4.34

%

               
NONINTEREST-EARNING ASSETS              
Cash and due from banks  

 

11,806

 

       

 

9,555

 

   
Other noninterest-earning assets  

 

34,068

 

       

 

30,557

 

   
Total noninterest-earning assets  

 

45,874

 

       

 

40,112

 

   
               
Less: Allowance for loan losses  

 

(14,773

)

       

 

(11,837

)

   
               
TOTAL ASSETS  

$

1,638,364

 

       

$

1,289,019

 

   
               
INTEREST-BEARING DEPOSITS              
Interest-bearing demand  

$

23,509

 

 

$

11

 

0.05

%

   

$

12,087

 

 

$

18

 

0.15

%

Money market  

 

295,559

 

 

 

1,507

 

0.51

%

   

 

180,640

 

 

 

1,539

 

0.85

%

Savings  

 

60,876

 

 

 

254

 

0.42

%

   

 

64,232

 

 

 

658

 

1.02

%

Time deposits  

 

498,053

 

 

 

3,236

 

0.65

%

   

 

491,281

 

 

 

8,936

 

1.82

%

Total interest-bearing deposits  

 

877,997

 

 

 

5,008

 

0.57

%

   

 

748,240

 

 

 

11,151

 

1.49

%

               
Borrowings  

 

54,247

 

 

 

485

 

0.89

%

   

 

90,471

 

 

 

560

 

0.62

%

Total interest-bearing liabilities  

 

932,244

 

 

 

5,493

 

0.59

%

   

 

838,711

 

 

 

11,711

 

1.40

%

               
Noninterest-bearing deposits  

 

519,570

 

       

 

282,045

 

   
Other Liabilities  

 

14,267

 

       

 

14,072

 

   
               
Stockholders' equity  

 

172,283

 

       

 

154,191

 

   
               
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY  

$

1,638,364

 

       

$

1,289,019

 

   
               
Net interest income²    

$

58,988

       

$

42,979

 
               
Net interest spread      

3.42

%

       

2.94

%

               
Effect of noninterest-bearing sources      

0.25

%

       

0.47

%

               
Net interest margin²      

3.67

%

       

3.41

%

               
               
Cost of deposits  

$

1,397,567

 

 

$

5,008

 

0.36

%

   

$

1,030,285

 

 

$

11,151

 

1.08

%

               
Cost of funds  

$

1,451,814

 

 

$

5,493

 

0.38

%

   

$

1,120,756

 

 

$

11,711

 

1.04

%

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)
 
Twelve Months Ended
December 31, 2021 December 31, 2020
Amount Yield Amount Yield
 
Contractual yield

$

54,992

4.29

%

$

47,272

4.65

%

SBA discount accretion

 

3,827

0.30

%

 

3,197

0.31

%

Prepayment penalties & late fees

 

323

0.03

%

 

528

0.05

%

Amortization of net deferred costs

 

2,726

0.21

%

 

895

0.09

%

As reported yield on loans

$

61,868

4.83

%

$

51,892

5.10

%

 

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