The Company’s Board of Directors declared a quarterly cash dividend of
“The highlight of the second quarter of 2022 was the closing of a
“We also reported another quarter of exceptional loan growth, with core loans excluding PPP loans increasing
The Company’s net interest margin was 3.63% in the second quarter of 2022, compared to 3.58% in the preceding quarter, and 2.96% in the second quarter a year ago. PPP loan fees and interest added 14 basis points to the net interest margin for the second quarter of 2022, compared to 26 basis points in the preceding quarter, but represented a 19 basis point drag on net interest margin in the second quarter a year ago.
“Credit quality remains very strong, and we do not anticipate any adverse effect from our coming conversion to the CECL loan loss methodology,” said
Second Quarter 2022 Financial Highlights (at or for the period ended
- Net income was
$1.84 million in the second quarter of 2022, compared to$2.41 million in the second quarter a year ago, and$1.62 million in the preceding quarter. Earnings per common share was$0.21 in the second quarter of 2022, compared to$0.18 in the prior quarter, and$0.27 in the second quarter a year ago. - Pre-tax, pre-provision, pre-CDFI grant income was
$2.83 million in the second quarter of 2022, compared to$2.31 million in the first quarter of 2022, and$1.88 million in the second quarter of 2021. - Total assets increased
$90.5 million , or 11.4%, to$886.3 million atJune 30, 2022 , compared to$795.9 million a year earlier, and increased$94.8 million , or 12.0%, compared to$791.6 million three months earlier. Average assets for the quarter totaled$825.6 million , an increase of$45.0 million , or 5.8%, from the second quarter a year ago and an increase of$66.2 million , or 8.7%, compared with the prior quarter. - Net interest income, before the provision for loan losses, increased 29.3% to
$7.21 million in the second quarter of 2022, compared to$5.58 million in the second quarter a year ago. There was a$400,000 provision for loan losses recorded in the second quarter of 2022, compared to a$250,000 provision for loan losses in the second quarter of 2021. - Non-interest income was
$376,000 in the second quarter of 2022 compared to$180,000 in the first quarter of 2022. In the second quarter of 2021, non-interest income was$2.00 million . Impacting non-interest income for the second quarter of 2021 was the proceeds from the$1.83 million CDFI Rapid Response Grant. - Operating revenue (net interest income before the provision for loan losses plus non-interest income) increased modestly to
$7.59 million in the second quarter of 2022, compared to$7.58 million in the second quarter a year ago, and increased 13.8% compared to$6.67 million in the first quarter of 2022. - Net interest margin for the second quarter expanded to 3.63%, compared to 3.58% in the preceding quarter and 2.96% in the second quarter a year ago. The expansion in net interest margin in the second quarter of 2022 as compared to the prior quarter was largely due to the increase in interest earning assets and higher loan yields during the current quarter, compared to the prior quarter. The average interest yield on non-PPP loans in the second quarter was 4.53%, compared to 4.48% in the prior quarter. The average cost of funds in the second quarter was 0.30%, a six basis point increase compared to the prior quarter and a four basis points increase compared to the prior year quarter.
- Loans, net of unearned income, increased
$71.3 million , or 13.7%, to$590.4 million atJune 30, 2022 , compared to$519.0 million a year ago, and increased$60.8 million , or 11.5%, compared to$529.6 million three months earlier. Loan growth excluding PPP totaled$73.3 million for the quarter, driving increased interest income. AtJune 30, 2022 , net non-PPP loans totaled$586.1 million , a 16.1% increase compared to$512.7 million atMarch 31, 2022 , and a 36.2% increase compared to$430.2 million atJune 30, 2021 . In addition, atJune 30, 2022 , the unused portion of credit commitments totaled$153.9 million compared to$148.7 million in the prior quarter and$152.7 million a year ago. - Over the last two years, the Company was an active participant in the SBA PPP, resulting in over
$158.0 million in PPP loans originated over the course of the two rounds of the program. At quarter end, the Company had a total of$4.3 million in gross PPP loans remaining on its books. Approximately$313,000 of the fee income recognized during the second quarter of 2022 was related to these PPP loan payoffs, compared to$596,000 of the fee income recognized during the prior quarter. AtJune 30, 2022 , approximately$120,000 in net unrecognized fee income remained to be recognized in relation to the PPP loan portfolio, which is predominantly expected during the next few quarters. - Total deposits decreased
$25.4 million , or 3.6%, to$672.5 million atJune 30, 2022 , compared to$697 .9 million a year ago, and decreased$26.0 million , or 3.7%, compared to$698.4 million three months earlier. Noninterest bearing demand deposit accounts decreased 9.5% compared to a year ago and represented 35.5% of total deposits. Savings, NOW and money market accounts decreased 12.7% compared to a year ago and represented 45.2% of total deposits. Due to rising interest rates, CDs increased 51.3% compared to a year ago and comprised 19.3% of the total deposit portfolio, atJune 30, 2022 . For the quarter, the overall cost of deposits was 30 basis points (“bp”) compared to 24 bp in the prior quarter, and 26 bp in the second quarter a year ago. - Asset quality remained very strong with no nonperforming loans at
June 30, 2022 . This compares to nonperforming loans at 0.004% of total loans atMarch 31, 2022 , and 0.007% atJune 30, 2021 . - The allowance for loan losses was
$6.90 million , or 1.17% of total loans atJune 30, 2022 , compared to$5.93 million , or 1.14% of total loans atJune 30, 2021 . The allowance, as a percentage of non-guaranteed loans, was 1.19% atJune 30, 2022 , compared to 1.42% a year ago. The allowance for loan losses reflects management’s assessment of the current economic environment. - Primarily due to the capital raise, total equity increased 184.0% to
$186.0 million as ofJune 30, 2022 , compared to$65.5 million a year ago. The Bank’s capital levels remained well aboveFDIC “Well Capitalized” standards as ofJune 30, 2022 , with a Tier 1 capital ratio of 28.78%; Common Equity Tier 1 capital ratio of 10.67%; Total capital ratio of 29.85%; and Leverage ratio of 22.99%. - Book value per common share totaled
$7.50 as ofJune 30, 2022 . The net increase from a year ago was 0.9% after accounting for unrealized losses on available-for-sale securities. - Declared a quarterly cash dividend of
$0.045 per share. The dividend is payableSeptember 9, 2022 to shareholders of record onAugust 31, 2022 .
On
On
During the second quarter of 2021, the Company was named a recipient of the CDFI Rapid Response Program, and was granted and fully deployed
While the ECIP capital investment and last year’s Rapid Response Grant were extraordinary events brought on by the Federal response to the pandemic, the Bank has maintained a long and important relationship with the US Treasury’s
For additional information on the ECIP Program please visit
https://home.treasury.gov/policy-issues/coronavirus/assistance-for-small-businesses/emergency-capital-investment-program
For additional information on the CDFI Rapid Response Program please visit
https://www.cdfifund.gov/programs-training/programs/rrp
About
Forward-Looking Statements
This release may contain forward-looking statements, such as, among others, statements about plans, expectations and goals concerning growth and improvement. Forward-looking statements are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, including the real estate market in
Contacts:
510-433-5404
wkeller@BankCBB.com
FINANCIAL TABLES TO FOLLOW:
UNAUDITED SUMMARY FINANCIAL STATEMENTS | |||||||||||||||||
(Dollars in thousands, except earnings per share) | |||||||||||||||||
Three Months Ended | |||||||||||||||||
2022 | 2022 | Qtr over Qtr | 2021 | Qtr over Yr Ago Qtr | |||||||||||||
31-Mar | % Change | % Change | |||||||||||||||
Interest income | $ | 7,756 | $ | 6,900 | 12.4 | % | $ | 6,035 | 28.5 | % | |||||||
Interest expense | 544 | 410 | 32.7 | % | 456 | 19.3 | % | ||||||||||
Net interest income before provision | 7,212 | 6,490 | 11.1 | % | 5,579 | 29.3 | % | ||||||||||
Provision for Loan Losses | 400 | - | n/a | 250 | 60.0 | % | |||||||||||
Net interest income after provision | 6,812 | 6,490 | 5.0 | % | 5,329 | 27.8 | % | ||||||||||
Non-interest income | 376 | 180 | 108.9 | % | 1,997 | -81.2 | % | ||||||||||
Non-interest expense | 4,583 | 4,361 | 5.1 | % | 3,869 | 18.5 | % | ||||||||||
Income before provision for income taxes | 2,605 | 2,309 | 12.8 | % | 3,457 | -24.6 | % | ||||||||||
Provision for income taxes | 769 | 683 | 12.6 | % | 1,050 | -26.8 | % | ||||||||||
Net income | $ | 1,836 | $ | 1,626 | 12.9 | % | $ | 2,407 | -23.7 | % | |||||||
Basic earnings per common share | $ | 0.21 | $ | 0.18 | 12.9 | % | $ | 0.27 | -24.4 | % | |||||||
Weighted average common shares outstanding | 8,871,052 | 8,871,052 | 8,794,445 | ||||||||||||||
Return on average assets | 0.89 | % | 0.87 | % | 1.24 | % | |||||||||||
Return on average common equity | 11.02 | % | 9.72 | % | 15.04 | % |
UNAUDITED SUMMARY FINANCIAL STATEMENTS | ||||||||||||||||||||
(Dollars in thousands, except book value per share) | ||||||||||||||||||||
BALANCE SHEET | At Period End | |||||||||||||||||||
2022 | 2021 | Qtr over Qtr | 2021 | Year over Year | ||||||||||||||||
ASSETS | % Change | % Change | ||||||||||||||||||
Total cash and investments | $ | 278,106 | $ | 247,559 | 12.3 | % | $ | 249,325 | 11.5 | % | ||||||||||
Loans, net of unearned income | 590,368 | 529,553 | 11.5 | % | 519,043 | 13.7 | % | |||||||||||||
Loan loss reserve | (6,902 | ) | (6,500 | ) | 6.2 | % | (5,931 | ) | 16.4 | % | ||||||||||
Other assets | 24,824 | 28,823 | -13.9 | % | 33,476 | -25.8 | % | |||||||||||||
Total Assets | $ | 886,396 | $ | 791,557 | 12.0 | % | $ | 795,913 | 11.4 | % | ||||||||||
LIABILITIES AND SHAREHOLDERS EQUITY | ||||||||||||||||||||
Non-interest bearing demand deposits | 238,608 | 241,902 | -1.4 | % | 263,697 | -9.5 | % | |||||||||||||
Interest bearing deposits | 433,921 | 456,592 | -5.0 | % | 434,238 | -0.1 | % | |||||||||||||
Total deposits | 672,529 | 698,494 | -3.7 | % | 697,935 | -3.6 | % | |||||||||||||
Total borrowings and other liabilities | 27,887 | 26,021 | 7.2 | % | 32,497 | -14.2 | % | |||||||||||||
Total Liabilities | $ | 700,416 | $ | 724,515 | -3.3 | % | $ | 730,432 | -4.1 | % | ||||||||||
Total equity | 185,980 | 67,042 | 177.4 | % | 65,481 | 184.0 | % | |||||||||||||
Total Liabilities and Total Equity | $ | 886,396 | $ | 791,557 | 12.0 | % | $ | 795,913 | 11.4 | % | ||||||||||
Book value per common share | $ | 7.50 | $ | 7.56 | -0.7 | % | $ | 7.44 | 0.9 | % |
SELECTED FINANCIAL DATA | ||||||||||||
(In thousands of dollars, except for ratios and per share amounts) | ||||||||||||
Unaudited | ||||||||||||
At or for the Three Months Ended | ||||||||||||
2022 | 2022 | 2021 | ||||||||||
ASSET QUALITY RATIOS | ||||||||||||
Net (charge-offs) recoveries | $ | 2 | $ | 220 | $ | 1 | ||||||
Net (charge-offs) recoveries to average loans | 0.000 | % | 0.042 | % | 0.000 | % | ||||||
Non-performing loans as a % of loans | 0.000 | % | 0.004 | % | 0.007 | % | ||||||
Non-performing assets as a % of assets | 0.000 | % | 0.003 | % | 0.004 | % | ||||||
Allowance for loan losses as a % of total loans | 1.17 | % | 1.25 | % | 1.14 | % | ||||||
Allowance for loan losses as a % of total unguaranteed loans | 1.19 | % | 1.31 | % | 1.42 | % | ||||||
Allowance for loan losses as a % of non-performing loans | n/a | 28966 | % | 16627 | % | |||||||
AVERAGE BALANCE SHEET DATA | ||||||||||||
Average assets | $ | 825,630 | $ | 759,409 | $ | 780,587 | ||||||
Average total loans | $ | 545,985 | $ | 525,647 | $ | 529,734 | ||||||
Average total deposits | $ | 695,944 | $ | 660,149 | $ | 682,091 | ||||||
Average shareholders' common equity | $ | 66,833 | $ | 67,820 | $ | 64,187 | ||||||
FINANCIAL RATIOSSTATISTICS | ||||||||||||
Return on average assets | 0.89 | % | 0.87 | % | 1.24 | % | ||||||
Return on average common equity | 11.02 | % | 9.72 | % | 15.04 | % | ||||||
Net interest margin | 3.63 | % | 3.58 | % | 2.96 | % | ||||||
Efficiency ratio | 60.40 | % | 65.38 | % | 51.07 | % |
Source:
2022 GlobeNewswire, Inc., source