The board of directors of
The Board of Directors of
“We are pleased with our third quarter operating results, posting solid profits for the quarter and record earnings for the first nine months of 2023,” said Portmann. “Earnings for the current quarter and year-to-date were fueled by higher loan growth and a strong net interest margin (“NIM”). We are encouraged by the steady loan demand as loan balances grew 2%, or
“Although the higher interest rate environment continued to impact funding costs, our NIM remained strong expanding 4 basis points from the linked quarter, 95 basis points from the like period a year ago and improved 139 basis points to 4.40% for the nine months ended
“Our prudent risk management protocols guide the growth of our loan portfolio and our credit metrics remained solid with only a slight elevation in net charge-offs,” said Portmann. “While we experienced some deposit decline during the current quarter, our balance sheet remains strong with diversified loan portfolio and deposit mix as well as strong liquidity metrics and capital ratios that exceed regulatory well-capitalized requirements.”
Third Quarter 2023 Financial Highlights:
- Return on average assets (“ROAA”) was 1.21%, compared to 1.30% for the second quarter 2023, and 0.86% for the third quarter 2022.
- Return on average equity (“ROAE”) was 13.16%, compared to 14.30% from the preceding quarter, and 11.13% from the third quarter a year earlier.
- Net interest income was
$12.3 million , up 1% compared to$12.2 million for the second quarter of 2023, and increased 13% from$10.9 million for the third quarter 2022. - Net interest margin (“NIM”) expanded four basis points to 4.37%, compared to 4.33% from the preceding quarter, and improved by 95 basis points from 3.42% for the third quarter a year ago.
- Provision for credit losses was
$249,000 compared to$71,000 for the preceding quarter and no provision in the like-quarter a year ago. - Gross loans balances increased
$13.3 million , or 2%, to$672.0 million atSeptember 30, 2023 , compared to$658.7 from the preceding quarter end and increased 8%, or$50.4 million , compared to$621.5 million atSeptember 30, 2022 . - Total deposits declined
$26.2 million to$1.05 billion , compared to$1.08 billion from the second quarter 2023, with core deposits representing 91% of total deposits atSeptember 30, 2023 . Non-interest bearing deposits represented 41% of total deposits atSeptember 30, 2023 . - Asset quality remains solid with nonperforming assets to total assets at 0.10%, compared to nonperforming assets to total assets at 0.08% for the preceding quarter, and 0.07% at
September 30, 2022 . - At
September 30, 2023 ,Pacific Financial continued to exceed regulatory well-capitalized requirements with a leverage ratio of 10.7% and a total risk-based capital ratio of 17.6%.
Liquidity
Liquidity metrics were robust with:
- Cash and cash equivalents of
$148 million , or 64% of uninsured and uncollateralized deposits, atSeptember 30, 2023 compared to$200 million atJune 30, 2023 . - Coverage of short-term funds available to uninsured and uncollateralized deposits was 254% at
September 30, 2023 compared to 261% atJune 30, 2023 . - Uninsured or uncollateralized deposits were 22% of total deposits at
September 30, 2023 andJune 30, 2023 .
As shown below, the Bank has established credit lines with borrowing capacity from the
Liquidity | ||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||
2023 | % of Deposits | 2023 | % of Deposits | $ Change | % Change | 2022 | % of Deposits | $ Change | % Change | |||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 147,970 | 14 | % | $ | 199,707 | 19 | % | $ | (51,737 | ) | -26 | % | $ | 415,349 | 33 | % | $ | (267,379 | ) | -64 | % | ||||||||
123,842 | 12 | % | 104,898 | 10 | % | 18,944 | 18 | % | 116,879 | 9 | % | 6,963 | 6 | % | ||||||||||||||||
Secured lines of Credit (FHLB, FRB) | 318,557 | 30 | % | 316,214 | 29 | % | 2,343 | 1 | % | 245,012 | 20 | % | 73,545 | 30 | % | |||||||||||||||
Total short-term funds available | $ | 590,369 | 56 | % | $ | 620,819 | 58 | % | $ | (30,450 | ) | -5 | % | $ | 777,240 | 62 | % | $ | (186,871 | ) | -24 | % | ||||||||
Short-term funds available to uninsured/uncollateralized deposits | 254 | % | 261 | % | 217 | % | ||||||||||||||||||||||||
Uninsured/uncollateralized deposits to total deposits | 22 | % | 22 | % | 29 | % | ||||||||||||||||||||||||
Gross loans to deposits ratio | 63 | % | 60 | % | 49 | % | ||||||||||||||||||||||||
Income Statement Review
Net interest income increased 1% to
Higher market interest rates combined with growth of investments and loan balances positively impacted net interest margin for the current quarter and for the nine months ended
The increase in average yields on interest-earning assets during the current quarter and first nine months of 2023 reflects the benefit of variable rate interest-earning assets repricing higher, as well as new loans being originated at higher interest rates. For the current quarter, loan yields increased 16 basis points to 5.71% compared to the preceding quarter of 5.55%, and increased 91 basis points from 4.80% from the third quarter 2022. In addition, the yield on interest-bearing bank deposits increased and was 5.35% for the quarter, compared to 5.09% for the preceding quarter, and 2.31% for the third quarter 2022. Cost of funds continued to increase during the quarter primarily due to the full quarter impact of deposit rate changes in money market accounts made in the second quarter 2023, as well as a slight change in deposit mix with higher costing term deposits representing a higher percentage of total deposits. The Bank’s total cost of funds increased to 0.72% for the current quarter, compared to 0.58% for the preceding quarter, and 0.10% for the third quarter 2022.
Noninterest income has remained relatively unchanged at
Noninterest expense was
Federal and
Balance Sheet Review
Total Assets declined by 2% to
Gross loans balances increased
Year-over-year the Bank experienced growth in most loan categories, with the exception in C&I loans. C&I balances have been impacted by continued low utilization on commercial lines-of credit that began during the pandemic and that utilization rate continues to remain low compared to historic levels. The largest growth categories year-over-year were construction, residential 1-4 family, multi-family and owner-occupied commercial real estate.
The Bank maintains a portfolio of loans to finance luxury and classic cars and as part of our risk management program the Bank manages the concentration levels of that portfolio. Loans to finance luxury and classic cars decreased 2% to
The Company manages new loan origination volume using concentration limits that establish maximum exposure levels by certain industry segments, loan product types, geography and single borrower limits. The loan pipeline continues to be supported by sustained business development activity by our commercial lending teams. In addition, the loan portfolio continues to be well-diversified and is originated predominantly within our
Credit Quality metrics remain sound with nonperforming assets at
Adoption of New Accounting Standard In
Allowance for Credit Losses (“ACL”) was
Total Deposits were
Shareholder’s Equity declined 2% to
Financial Performance Overview | |||||||||||||||
(Unaudited) | |||||||||||||||
For the Three Months Ended | |||||||||||||||
2023 | 2023 | Change | 2022 | Change | |||||||||||
Performance Ratios | |||||||||||||||
Return on average assets, annualized | 1.21 | % | 1.30 | % | (0.09 | ) | 0.86 | % | 0.35 | ||||||
Return on average equity, annualized | 13.16 | % | 14.30 | % | (1.14 | ) | 11.13 | % | 2.03 | ||||||
Efficiency ratio (1) | 65.78 | % | 64.26 | % | 1.52 | 71.20 | % | (5.42 | ) | ||||||
(1) Non-interest expense divided by net interest income plus noninterest income. | |||||||||||||||
For the Nine Months Ended, | |||||||||||||||
2023 | 2022 | Change | |||||||||||||
Performance Ratios | |||||||||||||||
Return on average assets, annualized | 1.28 | % | 1.31 | % | (0.03 | ) | |||||||||
Return on average equity, annualized | 14.34 | % | 14.95 | % | (0.61 | ) | |||||||||
Efficiency ratio (1) | 64.64 | % | 64.08 | % | 0.56 | ||||||||||
(1) Non-interest expense divided by net interest income plus noninterest income. | |||||||||||||||
Balance Sheet Overview | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
2023 | 2023 | $ Change | % Change | 2022 | $ Change | % Change | |||||||||||||||
Assets: | (Dollars in thousands, except per share data) | ||||||||||||||||||||
Cash on hand and in banks | $ | 12,052 | $ | 14,880 | $ | (2,828 | ) | -19 | % | $ | 29,361 | $ | (17,309 | ) | -59 | % | |||||
Interest bearing deposits | 146,886 | 197,952 | (51,066 | ) | -26 | % | 401,873 | (254,987 | ) | -63 | % | ||||||||||
Investment securities | 289,152 | 276,366 | 12,786 | 5 | % | 261,165 | 27,987 | 11 | % | ||||||||||||
Loans held-for-sale | 637 | 590 | 47 | 8 | % | 700 | (63 | ) | -9 | % | |||||||||||
Loans, net of deferred fees | 671,134 | 657,950 | 13,184 | 2 | % | 620,850 | 50,284 | 8 | % | ||||||||||||
Allowance for loan losses | (8,347 | ) | (8,223 | ) | (124 | ) | 2 | % | (8,249 | ) | (98 | ) | 1 | % | |||||||
Net loans | 662,787 | 649,727 | 13,060 | 2 | % | 612,601 | 50,186 | 8 | % | ||||||||||||
Bankers' Bank stock, at cost | 2,567 | 2,567 | - | 0 | % | 2,583 | (16 | ) | -1 | % | |||||||||||
Other assets | 67,894 | 66,473 | 1,421 | 2 | % | 66,990 | 904 | 1 | % | ||||||||||||
Total assets | $ | 1,181,975 | $ | 1,208,555 | $ | (26,580 | ) | -2 | % | $ | 1,375,273 | $ | (193,298 | ) | -14 | % | |||||
Liabilities and Shareholders' Equity: | |||||||||||||||||||||
Total deposits | $ | 1,051,256 | $ | 1,077,493 | $ | (26,237 | ) | -2 | % | $ | 1,254,323 | $ | (203,067 | ) | -16 | % | |||||
Borrowings | 13,403 | 13,403 | - | 0 | % | 13,403 | - | 0 | % | ||||||||||||
Accrued interest payable and other liabilities | 10,715 | 8,794 | 1,921 | 22 | % | 9,267 | 1,448 | 16 | % | ||||||||||||
Shareholders' equity | 106,601 | 108,865 | (2,264 | ) | -2 | % | 98,280 | 8,321 | 8 | % | |||||||||||
Total liabilities and shareholders' equity | $ | 1,181,975 | $ | 1,208,555 | $ | (26,580 | ) | -2 | % | $ | 1,375,273 | $ | (193,298 | ) | -14 | % | |||||
Common Shares Outstanding | 10,427,224 | 10,427,224 | - | 0 | % | 10,395,110 | 32,114 | 0 | % | ||||||||||||
Book value per common share (1) | $ | 10.22 | $ | 10.44 | $ | (0.22 | ) | -2 | % | $ | 9.45 | $ | 0.77 | 8 | % | ||||||
Tangible book value per common share (2) | $ | 8.93 | $ | 9.15 | $ | (0.22 | ) | -2 | % | $ | 8.16 | $ | 0.77 | 9 | % | ||||||
(1) Book value per common share is calculated as the total common shareholders' equity divided by the period ending number of common stock shares outstanding. | |||||||||||||||||||||
(2) Tangible book value per common share is calculated as the total common shareholders' equity less total intangible assets and liabilities, divided by the period ending number of common stock shares outstanding. |
Income Statement Overview | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
For the Three Months Ended, | ||||||||||||||||||||||
2023 | 2023 | $ Change | % Change | 2022 | $ Change | % Change | ||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||||
Interest and dividend income | $ | 14,242 | $ | 13,735 | $ | 507 | 4 | % | $ | 11,177 | $ | 3,065 | 27 | % | ||||||||
Interest expense | 1,962 | 1,564 | 398 | 25 | % | 298 | 1,664 | 558 | % | |||||||||||||
Net interest income | 12,280 | 12,171 | 109 | 1 | % | 10,879 | 1,401 | 13 | % | |||||||||||||
Loan loss provision | 249 | 71 | 178 | 251 | % | - | 249 | 100 | % | |||||||||||||
Noninterest income | 1,610 | 1,747 | (137 | ) | -8 | % | 1,692 | (82 | ) | -5 | % | |||||||||||
Noninterest expense | 9,137 | 8,944 | 193 | 2 | % | 8,950 | 187 | 2 | % | |||||||||||||
Income before income taxes | 4,504 | 4,903 | (399 | ) | -8 | % | 3,621 | 883 | 24 | % | ||||||||||||
Income tax expense | 859 | 994 | (135 | ) | -14 | % | 705 | 154 | 22 | % | ||||||||||||
Net Income | $ | 3,645 | $ | 3,909 | $ | (264 | ) | -7 | % | $ | 2,916 | $ | 729 | 25 | % | |||||||
Average common shares outstanding - basic | 10,427,224 | 10,424,391 | 2,833 | 0 | % | 10,393,705 | 33,519 | 0 | % | |||||||||||||
Average common shares outstanding - diluted | 10,433,686 | 10,430,494 | 3,192 | 0 | % | 10,423,404 | 10,282 | 0 | % | |||||||||||||
Income per common share | ||||||||||||||||||||||
Basic | $ | 0.35 | $ | 0.37 | $ | (0.02 | ) | -5 | % | $ | 0.28 | $ | 0.07 | 25 | % | |||||||
Diluted | $ | 0.35 | $ | 0.37 | $ | (0.02 | ) | -5 | % | $ | 0.28 | $ | 0.07 | 25 | % | |||||||
Effective tax rate | 19.1 | % | 20.3 | % | -1.2 | % | 19.5 | % | -0.4 | % | ||||||||||||
For the Nine Months Ended, | ||||||||||||||||||||||
2023 | 2022 | $ Change | % Change | |||||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||||
Interest and dividend income | $ | 41,667 | $ | 28,800 | $ | 12,867 | 45 | % | ||||||||||||||
Interest expense | 4,119 | 789 | 3,330 | 422 | % | |||||||||||||||||
Net interest income | 37,548 | 28,011 | 9,537 | 34 | % | |||||||||||||||||
Loan loss provision | 472 | - | 472 | 100 | % | |||||||||||||||||
Noninterest income | 4,644 | 5,668 | (1,024 | ) | -18 | % | ||||||||||||||||
Noninterest expense | 27,273 | 26,326 | 947 | 4 | % | |||||||||||||||||
Income before income taxes | 14,447 | 7,353 | 7,094 | 96 | % | |||||||||||||||||
Income tax expense | 2,784 | 1,182 | 1,602 | 136 | % | |||||||||||||||||
Net Income | $ | 11,663 | $ | 6,171 | $ | 5,492 | 89 | % | ||||||||||||||
Average common shares outstanding - basic | 10,423,335 | 10,392,325 | 31,010 | 0 | % | |||||||||||||||||
Average common shares outstanding - diluted | 10,432,155 | 10,423,504 | 8,651 | 0 | % | |||||||||||||||||
Income per common share | ||||||||||||||||||||||
Basic | $ | 1.12 | $ | 0.59 | $ | 0.53 | 90 | % | ||||||||||||||
Diluted | $ | 1.12 | $ | 0.59 | $ | 0.53 | 90 | % | ||||||||||||||
Effective tax rate | 19.3 | % | 16.1 | % | 3.2 | % | ||||||||||||||||
Noninterest Income | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
For the Three Months Ended, | ||||||||||||||||||||
2023 | 2023 | $ Change | % Change | 2022 | $ Change | % Change | ||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Service charges on deposits | $ | 514 | $ | 509 | $ | 5 | 1 | % | $ | 415 | $ | 99 | 24 | % | ||||||
Gain on sale of loans, net | 170 | 260 | (90 | ) | -35 | % | 265 | (95 | ) | -36 | % | |||||||||
Earnings on bank owned life insurance | 174 | 172 | 2 | 1 | % | 167 | 7 | 4 | % | |||||||||||
Other noninterest income | ||||||||||||||||||||
Fee income | 734 | 759 | (25 | ) | -3 | % | 841 | (107 | ) | -13 | % | |||||||||
Other | 18 | 47 | (29 | ) | -62 | % | 4 | 14 | 350 | % | ||||||||||
Total noninterest income | $ | 1,610 | $ | 1,747 | $ | (137 | ) | -8 | % | $ | 1,692 | $ | (82 | ) | -5 | % | ||||
For the Nine Months Ended, | ||||||||||||||||||||
2023 | 2022 | $ Change | % Change | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Service charges on deposits | $ | 1,496 | $ | 1,217 | $ | 279 | 23 | % | ||||||||||||
Gain on sale of loans, net | 540 | 1,309 | (769 | ) | -59 | % | ||||||||||||||
Gain on sale of securities available for sale, net | (154 | ) | - | (154 | ) | -100 | % | |||||||||||||
Earnings on bank owned life insurance | 509 | 521 | (12 | ) | -2 | % | ||||||||||||||
Other noninterest income | ||||||||||||||||||||
Fee income | 2,199 | 2,616 | (417 | ) | -16 | % | ||||||||||||||
Other | 54 | 5 | 49 | 980 | % | |||||||||||||||
Total noninterest income | $ | 4,644 | $ | 5,668 | $ | (1,024 | ) | -18 | % | |||||||||||
Noninterest Expense | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
For the Three Months Ended, | |||||||||||||||||||
2023 | 2023 | $ Change | % Change | 2022 | $ Change | % Change | |||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Salaries and employee benefits | $ | 5,560 | $ | 5,661 | $ | (101 | ) | -2 | % | $ | 5,792 | $ | (232 | ) | -4 | % | |||
Occupancy | 501 | 504 | (3 | ) | -1 | % | 489 | 12 | 2 | % | |||||||||
Equipment | 252 | 269 | (17 | ) | -6 | % | 289 | (37 | ) | -13 | % | ||||||||
Data processing | 925 | 922 | 3 | 0 | % | 881 | 44 | 5 | % | ||||||||||
Professional services | 193 | 204 | (11 | ) | -5 | % | 154 | 39 | 25 | % | |||||||||
State and local taxes | 446 | 207 | 239 | 115 | % | 176 | 270 | 153 | % | ||||||||||
140 | 154 | (14 | ) | -9 | % | 93 | 47 | 51 | % | ||||||||||
Other noninterest expense: | |||||||||||||||||||
Director fees | 84 | 76 | 8 | 11 | % | 62 | 22 | 35 | % | ||||||||||
Communication | 67 | 62 | 5 | 8 | % | 60 | 7 | 12 | % | ||||||||||
Advertising | 103 | 52 | 51 | 98 | % | 95 | 8 | 8 | % | ||||||||||
Professional liability insurance | 70 | 69 | 1 | 1 | % | 67 | 3 | 4 | % | ||||||||||
Amortization | 43 | 43 | - | 0 | % | 45 | (2 | ) | -4 | % | |||||||||
Other | 753 | 721 | 32 | 4 | % | 747 | 6 | 1 | % | ||||||||||
Total noninterest expense | $ | 9,137 | $ | 8,944 | $ | 193 | 2 | % | $ | 8,950 | $ | 187 | 2 | % | |||||
For the Nine Months Ended, | |||||||||||||||||||
2023 | 2022 | $ Change | % Change | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Salaries and employee benefits | $ | 17,006 | $ | 16,969 | $ | 37 | 0 | % | |||||||||||
Occupancy | 1,536 | 1,515 | 21 | 1 | % | ||||||||||||||
Equipment | 808 | 887 | (79 | ) | -9 | % | |||||||||||||
Data processing | 2,799 | 2,625 | 174 | 7 | % | ||||||||||||||
Professional services | 638 | 551 | 87 | 16 | % | ||||||||||||||
State and local taxes | 831 | 495 | 336 | 68 | % | ||||||||||||||
448 | 294 | 154 | 52 | % | |||||||||||||||
Other noninterest expense: | |||||||||||||||||||
Director fees | 230 | 211 | 19 | 9 | % | ||||||||||||||
Communication | 188 | 195 | (7 | ) | -4 | % | |||||||||||||
Advertising | 214 | 238 | (24 | ) | -10 | % | |||||||||||||
Professional liability insurance | 206 | 189 | 17 | 9 | % | ||||||||||||||
Amortization | 131 | 138 | (7 | ) | -5 | % | |||||||||||||
Other | 2,238 | 2,019 | 219 | 11 | % | ||||||||||||||
Total noninterest expense | $ | 27,273 | $ | 26,326 | $ | 947 | 4 | % | |||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||
2023 | % of Total | 2023 | % of Total | $ Change | % Change | 2022 | % of Total | $ Change | % Change | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||||
Collateralized mortgage obligations | $ | 126,376 | 44 | % | $ | 117,448 | 43 | % | $ | 8,928 | 8 | % | $ | 78,741 | 30 | % | $ | 47,635 | 60 | % | |||||||||||
Mortgage backed securities | 38,322 | 13 | % | 31,346 | 11 | % | 6,976 | 22 | % | 33,415 | 13 | % | 4,907 | 15 | % | ||||||||||||||||
82,292 | 28 | % | 83,319 | 30 | % | (1,027 | ) | -1 | % | 84,028 | 32 | % | (1,736 | ) | -2 | % | |||||||||||||||
Municipal securities | 42,162 | 15 | % | 44,253 | 16 | % | (2,091 | ) | -5 | % | 62,986 | 24 | % | (20,824 | ) | -33 | % | ||||||||||||||
Corporate debt securities | - | 0 | % | - | 0 | % | - | 0 | % | 1,995 | 1 | % | (1,995 | ) | -100 | % | |||||||||||||||
Total | $ | 289,152 | 100 | % | $ | 276,366 | 100 | % | $ | 12,786 | 5 | % | $ | 261,165 | 100 | % | $ | 27,987 | 11 | % | |||||||||||
Held to maturity securities | $ | 56,469 | 20 | % | $ | 57,464 | 21 | % | $ | (995 | ) | -2 | % | $ | 60,722 | 23 | % | $ | (4,253 | ) | -7 | % | |||||||||
Available for sale securities | $ | 232,683 | 80 | % | $ | 218,902 | 79 | % | $ | 13,781 | 6 | % | $ | 200,443 | 77 | % | $ | 32,240 | 16 | % | |||||||||||
$ | 246,956 | 85 | % | $ | 232,076 | 84 | % | $ | 14,880 | 6 | % | $ | 196,136 | 75 | % | $ | 50,820 | 26 | % | ||||||||||||
$ | 41,025 | 14 | % | $ | 43,086 | 16 | % | $ | (2,061 | ) | -5 | % | $ | 63,679 | 24 | % | $ | (22,654 | ) | -36 | % | ||||||||||
Non-rated securities | $ | 1,171 | 1 | % | $ | 1,204 | 0 | % | $ | (33 | ) | -3 | % | $ | 1,350 | 1 | % | $ | (179 | ) | -13 | % | |||||||||
AFS Unrealized Gain (Loss) | $ | (29,783 | ) | -10 | % | $ | (23,900 | ) | -9 | % | $ | (5,883 | ) | -1 | % | $ | (26,090 | ) | -10 | % | $ | (3,693 | ) | 0 | % | ||||||
Loans by Category | |||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||
2023 | % of Gross Loans | 2023 | % of Gross Loans | $ Change | % Change | 2022 | % of Gross Loans | $ Change | % Change | ||||||||||||||||||||||
Commercial: | (Dollars in thousands) | ||||||||||||||||||||||||||||||
Commercial and agricultural | $ | 72,901 | 11 | % | $ | 70,422 | 11 | % | $ | 2,479 | 4 | % | $ | 73,788 | 12 | % | $ | (887 | ) | -1 | % | ||||||||||
PPP | 331 | 0 | % | 370 | 0 | % | (39 | ) | -11 | % | 553 | 0 | % | (222 | ) | -40 | % | ||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||
Construction and development | 42,584 | 6 | % | 37,781 | 6 | % | 4,803 | 13 | % | 35,500 | 6 | % | 7,084 | 20 | % | ||||||||||||||||
Residential 1-4 family | 90,449 | 14 | % | 87,002 | 13 | % | 3,447 | 4 | % | 79,497 | 13 | % | 10,952 | 14 | % | ||||||||||||||||
Multi-family | 49,092 | 7 | % | 44,854 | 7 | % | 4,238 | 9 | % | 41,473 | 7 | % | 7,619 | 18 | % | ||||||||||||||||
Commercial real estate -- owner occupied | 164,057 | 25 | % | 166,594 | 24 | % | (2,537 | ) | -2 | % | 150,598 | 24 | % | 13,459 | 9 | % | |||||||||||||||
Commercial real estate -- non owner occupied | 154,993 | 23 | % | 155,002 | 24 | % | (9 | ) | 0 | % | 149,627 | 24 | % | 5,366 | 4 | % | |||||||||||||||
Farmland | 27,641 | 4 | % | 25,936 | 4 | % | 1,705 | 7 | % | 25,140 | 4 | % | 2,501 | 10 | % | ||||||||||||||||
Consumer | 69,921 | 10 | % | 70,738 | 11 | % | (817 | ) | -1 | % | 65,365 | 10 | % | 4,556 | 7 | % | |||||||||||||||
Gross Loans | 671,969 | 100 | % | 658,699 | 100 | % | 13,270 | 2 | % | 621,541 | 100 | % | 50,428 | 8 | % | ||||||||||||||||
Less: allowance for loan losses | (8,347 | ) | (8,223 | ) | (124 | ) | (8,249 | ) | (98 | ) | |||||||||||||||||||||
Less: deferred fees | (835 | ) | (749 | ) | (86 | ) | (691 | ) | (144 | ) | |||||||||||||||||||||
Net loans | $ | 662,787 | $ | 649,727 | $ | 13,060 | $ | 612,601 | $ | 50,186 | |||||||||||||||||||||
Loan Concentration | |||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||
2023 | % of Risk Based Capital | 2023 | % of Risk Based Capital | Change | 2022 | % of Risk Based Capital | Change | ||||||||||||||||||||||||
Commercial: | (Dollars in thousands) | ||||||||||||||||||||||||||||||
Commercial and agricultural | $ | 72,901 | 53 | % | $ | 70,422 | 52 | % | 1 | % | $ | 73,788 | 58 | % | -5 | % | |||||||||||||||
PPP | 331 | 0 | % | 370 | 0 | % | 0 | % | 553 | 0 | % | 0 | % | ||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||
Construction and development | 42,584 | 31 | % | 37,781 | 28 | % | 3 | % | 35,500 | 28 | % | 3 | % | ||||||||||||||||||
Residential 1-4 family | 90,449 | 66 | % | 87,002 | 64 | % | 2 | % | 79,497 | 63 | % | 3 | % | ||||||||||||||||||
Multi-family | 49,092 | 36 | % | 44,854 | 33 | % | 3 | % | 41,473 | 33 | % | 3 | % | ||||||||||||||||||
Commercial real estate -- owner occupied | 164,057 | 119 | % | 166,594 | 123 | % | -4 | % | 150,598 | 119 | % | 0 | % | ||||||||||||||||||
Commercial real estate -- non owner occupied | 154,993 | 113 | % | 155,002 | 115 | % | -2 | % | 149,627 | 118 | % | -5 | % | ||||||||||||||||||
Farmland | 27,641 | 20 | % | 25,936 | 19 | % | 1 | % | 25,140 | 20 | % | 0 | % | ||||||||||||||||||
Consumer | 69,921 | 51 | % | 70,738 | 52 | % | -1 | % | 65,365 | 52 | % | -1 | % | ||||||||||||||||||
Gross Loans | $ | 671,969 | $ | 658,699 | $ | 621,541 | |||||||||||||||||||||||||
Regulatory | $ | 244,277 | 178 | % | $ | 235,318 | 174 | % | 4 | % | $ | 224,100 | 177 | % | 1 | % | |||||||||||||||
Total Risk Based Capital* | $ | 137,473 | $ | 135,106 | $ | 126,526 | |||||||||||||||||||||||||
* | |||||||||||||||||||||||||||||||
The following table presents the Commercial real estate – non owner occupied loan balances, including loans in the process of construction and development, by collateral type:
Non-Owner Occupied Commercial Real Estate Composition* | ||||||
(Unaudited) | ||||||
2023 | % of Total | |||||
Multifamily | $ | 54,677 | 26 | % | ||
Hospitality | 32,190 | 15 | % | |||
Retail | 28,657 | 13 | % | |||
Office | 27,075 | 13 | % | |||
Mixed Use | 22,457 | 11 | % | |||
Mini Storage | 20,977 | 10 | % | |||
Industrial | 10,898 | 5 | % | |||
Special Purpose | 7,146 | 3 | % | |||
Warehouse | 6,204 | 3 | % | |||
Other | 3,380 | 1 | % | |||
Total | $ | 213,661 | ||||
*Includes loans in the process of construction and development | ||||||
Deposits by Category | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
2023 | % of Total | 2023 | % of Total | $ Change | % Change | Sep 30,| 2022 | % of Total | $ Change | % Change | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Interest-bearing demand | $ | 208,091 | 20 | % | $ | 226,696 | 22 | % | $ | (18,605 | ) | -8 | % | $ | 268,874 | 20 | % | $ | (60,783 | ) | -23 | % | |||||
Money market | 179,367 | 17 | % | 177,210 | 16 | % | 2,157 | 1 | % | 208,486 | 17 | % | (29,119 | ) | -14 | % | |||||||||||
Savings | 138,981 | 13 | % | 151,406 | 14 | % | (12,425 | ) | -8 | % | 184,229 | 16 | % | (45,248 | ) | -25 | % | ||||||||||
Time deposits (CDs) | 92,720 | 9 | % | 75,403 | 7 | % | 17,317 | 23 | % | 52,550 | 4 | % | 40,170 | 76 | % | ||||||||||||
Total interest-bearing deposits | 619,159 | 59 | % | 630,715 | 59 | % | (11,556 | ) | -2 | % | 714,139 | 57 | % | (94,980 | ) | -13 | % | ||||||||||
Non-interest bearing demand | 432,097 | 41 | % | 446,778 | 41 | % | (14,681 | ) | -3 | % | 540,184 | 43 | % | (108,087 | ) | -20 | % | ||||||||||
Total deposits | $ | 1,051,256 | 100 | % | $ | 1,077,493 | 100 | % | $ | (26,237 | ) | -2 | % | $ | 1,254,323 | 100 | % | $ | (203,067 | ) | -16 | % | |||||
Insured Deposits | $ | 666,308 | 63 | % | $ | 678,027 | 63 | % | $ | (11,719 | ) | -2 | % | $ | 744,406 | 59 | % | $ | (78,098 | ) | -10 | % | |||||
Collaterialized Deposits | 152,960 | 15 | % | 161,482 | 15 | % | (8,522 | ) | -5 | % | 151,293 | 12 | % | 1,667 | 1 | % | |||||||||||
Uninsured Deposits | 231,988 | 22 | % | 237,984 | 22 | % | (5,996 | ) | -3 | % | 358,624 | 29 | % | (126,636 | ) | -35 | % | ||||||||||
Total Deposits | $ | 1,051,256 | 100 | % | $ | 1,077,493 | 100 | % | $ | (26,237 | ) | -2 | % | $ | 1,254,323 | 100 | % | $ | (203,067 | ) | -16 | % | |||||
Consumer Deposits | $ | 466,877 | 44 | % | $ | 479,665 | 45 | % | $ | (12,788 | ) | -3 | % | $ | 549,581 | 44 | % | $ | (82,704 | ) | -15 | % | |||||
Business Deposits | 429,443 | 41 | % | 427,025 | 40 | % | 2,418 | 1 | % | 544,349 | 43 | % | (114,906 | ) | -21 | % | |||||||||||
Public Deposits | 154,936 | 15 | % | 170,803 | 15 | % | (15,867 | ) | -9 | % | 160,393 | 13 | % | (5,457 | ) | -3 | % | ||||||||||
Total Deposits | $ | 1,051,256 | 100 | % | $ | 1,077,493 | 100 | % | $ | (26,237 | ) | -2 | % | $ | 1,254,323 | 100 | % | $ | (203,067 | ) | -16 | % | |||||
The following table summarizes the capital measures of the Company and the Bank respectively, at the dates listed below.
Capital Measures | |||||||||||||||
(unaudited) | |||||||||||||||
2023 | 2023 | Change | 2022 | Change | Well Capitalized Under Prompt Correction Action Regulations | ||||||||||
Total risk-based capital ratio | 17.6 | % | 17.8 | % | (0.2 | ) | 17.4 | % | 0.2 | N/A | |||||
Tier 1 risk-based capital ratio | 16.5 | % | 16.6 | % | (0.1 | ) | 16.2 | % | 0.3 | N/A | |||||
Common equity tier 1 ratio | 14.8 | % | 14.9 | % | (0.1 | ) | 14.4 | % | 0.4 | N/A | |||||
Leverage ratio | 10.7 | % | 10.8 | % | (0.1 | ) | 8.7 | % | 2.0 | N/A | |||||
Tangible common equity ratio | 8.0 | % | 8.0 | % | - | 6.2 | % | 1.8 | N/A | ||||||
Total risk-based capital ratio | 17.6 | % | 17.7 | % | (0.1 | ) | 17.3 | % | 0.3 | 10.5% | |||||
Tier 1 risk-based capital ratio | 16.4 | % | 16.5 | % | (0.1 | ) | 16.2 | % | 0.2 | 8.5% | |||||
Common equity tier 1 ratio | 16.4 | % | 16.5 | % | (0.1 | ) | 16.2 | % | 0.2 | 7.0% | |||||
Leverage ratio | 10.6 | % | 10.5 | % | 0.1 | 8.8 | % | 1.8 | 7.5% | ||||||
The following tables set forth information regarding average balances of interest-earning assets and interest-bearing liabilities and the resultant yields or cost, and the net interest margin on a tax equivalent basis. Loans held for sale and non-accrual loans are included in total loans.
Net Interest Margin | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
(Annualized, tax-equivalent basis) | ||||||||||||||||||||
For the Three Months Ended, | ||||||||||||||||||||
2023 | 2023 | $ Change | % Change | 2022 | $ Change | % Change | ||||||||||||||
Average Balances | (Dollars in thousands) | |||||||||||||||||||
Gross loans | $ | 665,300 | $ | 651,472 | $ | 13,828 | 2 | % | $ | 610,146 | $ | 55,154 | 9 | % | ||||||
Loans held for sale | $ | 497 | $ | 722 | $ | (225 | ) | -31 | % | $ | 1,448 | $ | (951 | ) | -66 | % | ||||
Investment securities | $ | 284,041 | $ | 284,902 | $ | (861 | ) | 0 | % | $ | 274,773 | $ | 9,268 | 3 | % | |||||
Federal funds sold & interest bearing deposits in banks | $ | 172,119 | $ | 196,409 | $ | (24,290 | ) | -12 | % | $ | 387,437 | $ | (215,318 | ) | -56 | % | ||||
Total interest-earning assets | $ | 1,121,957 | $ | 1,133,505 | $ | (11,548 | ) | -1 | % | $ | 1,273,804 | $ | (151,847 | ) | -12 | % | ||||
Non-interest bearing demand deposits | $ | 441,782 | $ | 448,788 | $ | (7,006 | ) | -2 | % | $ | 521,119 | $ | (79,337 | ) | -15 | % | ||||
Interest bearing deposits | $ | 619,183 | $ | 624,051 | $ | (4,868 | ) | -1 | % | $ | 702,476 | $ | (83,293 | ) | -12 | % | ||||
Total Deposits | $ | 1,060,965 | $ | 1,072,839 | $ | (11,874 | ) | -1 | % | $ | 1,223,595 | $ | (162,630 | ) | -13 | % | ||||
Borrowings | $ | 13,403 | $ | 13,403 | $ | - | 0 | % | $ | 13,451 | $ | (48 | ) | 0 | % | |||||
Total interest-bearing liabilities | $ | 632,586 | $ | 637,454 | $ | (4,868 | ) | -1 | % | $ | 715,927 | $ | (83,341 | ) | -12 | % | ||||
Total Equity | $ | 109,872 | $ | 109,662 | $ | 210 | 0 | % | $ | 103,945 | $ | 5,927 | 6 | % | ||||||
For the Three Months Ended, | ||||||||||||||||||||
2023 | 2023 | Change | 2022 | Change | ||||||||||||||||
Yield on average gross loans (1) | 5.71 | % | 5.55 | % | 0.16 | 4.80 | % | 0.91 | ||||||||||||
Yield on average investment securities (1) | 3.36 | % | 3.21 | % | 0.15 | 2.33 | % | 1.03 | ||||||||||||
Yield on Fed funds sold & interest bearing deposits in banks | 5.35 | % | 5.09 | % | 0.26 | 2.31 | % | 3.04 | ||||||||||||
Cost of average interest bearing deposits | 1.10 | % | 0.86 | % | 0.24 | 0.09 | % | 1.01 | ||||||||||||
Cost of average borrowings | 7.28 | % | 6.67 | % | 0.61 | 3.86 | % | 3.42 | ||||||||||||
Cost of average total deposits and borrowings | 0.72 | % | 0.58 | % | 0.14 | 0.10 | % | 0.62 | ||||||||||||
Yield on average interest-earning assets | 5.06 | % | 4.88 | % | 0.18 | 3.51 | % | 1.55 | ||||||||||||
Cost of average interest-bearing liabilities | 1.23 | % | 0.98 | % | 0.25 | 0.16 | % | 1.07 | ||||||||||||
Net interest spread | 3.83 | % | 3.90 | % | (0.07 | ) | 3.35 | % | 0.48 | |||||||||||
Net interest margin (1) | 4.37 | % | 4.33 | % | 0.04 | 3.42 | % | 0.95 | ||||||||||||
(1) Tax-exempt income has been adjusted to a tax equivalent basis at a rate of 21%. | ||||||||||||||||||||
For the Nine Months Ended, | ||||||||||||||||||||
2023 | 2022 | $ Change | % Change | |||||||||||||||||
Average Balances | (Dollars in thousands) | |||||||||||||||||||
Gross loans | $ | 653,619 | $ | 612,922 | $ | 40,697 | 7 | % | ||||||||||||
Loans held for sale | $ | 601 | $ | 2,551 | $ | (1,950 | ) | -76 | % | |||||||||||
Investment securities | $ | 285,538 | $ | 258,953 | $ | 26,585 | 10 | % | ||||||||||||
Federal funds sold & interest bearing deposits in banks | $ | 206,259 | $ | 382,835 | $ | (176,576 | ) | -46 | % | |||||||||||
Interest-earning assets | $ | 1,146,017 | $ | 1,257,261 | $ | (111,244 | ) | -9 | % | |||||||||||
Non-interest bearing demand deposits | $ | 457,750 | $ | 503,710 | $ | (45,960 | ) | -9 | % | |||||||||||
Interest bearing deposits | $ | 628,978 | $ | 696,866 | $ | (67,888 | ) | -10 | % | |||||||||||
Total Deposits | $ | 1,086,728 | $ | 1,200,576 | $ | (113,848 | ) | -9 | % | |||||||||||
Borrowings | $ | 13,401 | $ | 13,656 | $ | (255 | ) | -2 | % | |||||||||||
Interest-bearing liabilities | $ | 642,379 | $ | 710,522 | $ | (68,143 | ) | -10 | % | |||||||||||
Total Equity | $ | 108,727 | $ | 108,467 | $ | 260 | 0 | % | ||||||||||||
For the Nine Months Ended, | ||||||||||||||||||||
2023 | 2022 | Change | ||||||||||||||||||
Net Interest Margin | ||||||||||||||||||||
Yield on average gross loans (1) | 5.57 | % | 4.77 | % | 0.80 | |||||||||||||||
Yield on average investment securities (1) | 3.26 | % | 2.02 | % | 1.24 | |||||||||||||||
Yield on Fed funds sold & interest bearing deposits in banks | 4.97 | % | 1.13 | % | 3.84 | |||||||||||||||
Cost of average interest bearing deposits | 0.73 | % | 0.10 | % | 0.63 | |||||||||||||||
Cost of average borrowings | 6.80 | % | 2.75 | % | 4.05 | |||||||||||||||
Cost of average total deposits and borrowings | 0.50 | % | 0.09 | % | 0.41 | |||||||||||||||
Yield on average interest-earning assets | 4.88 | % | 3.09 | % | 1.79 | |||||||||||||||
Cost of average interest-bearing liabilities | 0.86 | % | 0.15 | % | 0.71 | |||||||||||||||
Net interest spread | 4.02 | % | 2.94 | % | 1.08 | |||||||||||||||
Net interest margin (1) | 4.40 | % | 3.01 | % | 1.39 | |||||||||||||||
(1) Tax-exempt income has been adjusted to a tax equivalent basis at a rate of 21%. |
(Unaudited) | |||||||||||||||||||||
2023 | 2023 | $ Change | % Change | 2022 | $ Change | % Change | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Rated substandard or worse, but not impaired, beginning of three month period | $ | 5,186 | $ | 4,755 | $ | 431 | 9 | % | $ | 7,100 | $ | (1,914 | ) | -27 | % | ||||||
Addition of previously classified pass graded loans | 107 | 981 | (874 | ) | -89 | % | 365 | (258 | ) | -71 | % | ||||||||||
Upgrades to pass or other loans especially mentioned status | - | - | - | 0 | % | (4,536 | ) | 4,536 | -100 | % | |||||||||||
Moved to nonaccrual | - | - | - | 0 | % | - | - | 0 | % | ||||||||||||
Principal payments, net | (221 | ) | (550 | ) | 329 | -60 | % | (115 | ) | (106 | ) | 92 | % | ||||||||
Rated substandard or worse, but not impaired, end of three month period | $ | 5,072 | $ | 5,186 | $ | (114 | ) | -2 | % | $ | 2,814 | $ | 2,258 | 80 | % | ||||||
Impaired | 1,219 | 959 | 260 | 27 | % | 2,499 | (1,280 | ) | -51 | % | |||||||||||
Total adversely classified loans¹ | $ | 6,291 | $ | 6,145 | $ | 146 | 2 | % | $ | 5,313 | $ | 978 | 18 | % | |||||||
Other loans especially mentioned or watch, but not impaired | $ | 13,148 | $ | 13,097 | $ | 51 | 0 | % | $ | 31,452 | $ | (18,304 | ) | -58 | % | ||||||
Gross loans (excluding deferred loan fees) | $ | 671,969 | $ | 658,699 | $ | 13,270 | 2 | % | $ | 621,541 | $ | 50,428 | 8 | % | |||||||
Adversely classified loans to gross loans | 0.94 | % | 0.93 | % | 0.85 | % | |||||||||||||||
Allowance for loan losses | $ | 8,347 | $ | 8,223 | $ | 124 | 2 | % | $ | 8,249 | $ | 98 | 1 | % | |||||||
Allowance for loan losses as a percentage of adversely classified loans | 132.68 | % | 133.82 | % | 155.26 | % | |||||||||||||||
Allowance for loan losses to total impaired loans | 684.74 | % | 857.46 | % | 330.09 | % | |||||||||||||||
Adversely classified loans to total assets | 0.53 | % | 0.51 | % | 0.39 | % | |||||||||||||||
Delinquent loans to gross loans, not in nonaccrual status 2 | 0.25 | % | 0.01 | % | 0.01 | % | |||||||||||||||
1 Adversely classified loans are defined as loans having a well-defined weakness or weaknesses related to the borrower's financial capacity or to pledged collateral that may | |||||||||||||||||||||
jeopardize the repayment of the debt. They are characterized by the possibility that the Bank may sustain some loss if the deficiencies giving rise to the substandard | |||||||||||||||||||||
classification are not corrected. Note that any loans internally rated worse than substandard are included in the impaired loan totals. | |||||||||||||||||||||
2 Delinquent loans are defined as loans past due 30-90 days and still accruing | |||||||||||||||||||||
Nonperforming Assets | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
2023 | 2023 | $ Change | % Change | 2022 | $ Change | % Change | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Total nonaccrual loans, beginning of three month period | $ | 959 | $ | 961 | $ | (2 | ) | 0 | % | $ | 1,240 | $ | (281 | ) | -23 | % | |||||
Transfer to performing loans | - | - | - | 0 | % | (334 | ) | 334 | -100 | % | |||||||||||
Addition of nonaccrual loans | 288 | 93 | 195 | 210 | % | - | 288 | 100 | % | ||||||||||||
Moved to other assets owned | - | - | - | 0 | % | - | - | 0 | % | ||||||||||||
Principal payments, net | (28 | ) | (95 | ) | 67 | -71 | % | (7 | ) | (21 | ) | 300 | % | ||||||||
Charge-offs, net | - | - | - | 0 | % | - | - | 0 | % | ||||||||||||
Total nonaccrual loans, end of three month period | $ | 1,219 | $ | 959 | $ | 260 | 27 | % | $ | 899 | $ | 320 | 36 | % | |||||||
Other real estate owned and foreclosed assets | - | - | - | 0 | % | 90 | (90 | ) | -100 | % | |||||||||||
Total nonperforming assets | $ | 1,219 | $ | 959 | $ | 260 | 27 | % | $ | 989 | $ | 230 | 23 | % | |||||||
Accruing loans past due 90 days or more | $ | - | $ | - | $ | - | 0 | % | $ | - | $ | - | 0 | % | |||||||
Percentage of nonperforming assets to total assets | 0.10 | % | 0.08 | % | 0.07 | % | |||||||||||||||
Nonperforming loans to total loans | 0.18 | % | 0.15 | % | 0.14 | % | |||||||||||||||
Allowance for Credit Losses | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
For the Three Months Ended, | |||||||||||||||||||||
2023 | 2023 | $ Change | % Change | 2022 | $ Change | % Change | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Gross loans outstanding at end of period | $ | 671,969 | $ | 658,699 | $ | 13,270 | 2 | % | $ | 621,541 | $ | 50,428 | 8 | % | |||||||
Average loans outstanding, gross | $ | 665,300 | $ | 651,472 | $ | 13,828 | 2 | % | $ | 610,146 | $ | 55,154 | 9 | % | |||||||
Allowance for credit losses, beginning of period | $ | 8,223 | $ | 8,231 | $ | (8 | ) | 0 | % | $ | 8,282 | $ | (59 | ) | -1 | % | |||||
Impact of CECL Adoption (ASC 326) | - | - | - | 0 | % | - | - | 0 | % | ||||||||||||
Commercial | - | (84 | ) | 84 | -100 | % | - | - | 0 | % | |||||||||||
- | - | - | 0 | % | - | - | 0 | % | |||||||||||||
- | - | - | 0 | % | - | - | 0 | % | |||||||||||||
Consumer | (126 | ) | (10 | ) | (116 | ) | 1160 | % | (34 | ) | (92 | ) | 271 | % | |||||||
Total charge-offs | (126 | ) | (94 | ) | (32 | ) | 34 | % | (34 | ) | (92 | ) | 271 | % | |||||||
Commercial | - | - | - | 0 | % | - | - | 0 | % | ||||||||||||
- | - | - | 0 | % | - | - | 0 | % | |||||||||||||
- | - | - | 0 | % | - | - | 0 | % | |||||||||||||
Consumer | 1 | 15 | (14 | ) | -93 | % | 1 | - | 0 | % | |||||||||||
Total recoveries | 1 | 15 | (14 | ) | -93 | % | 1 | - | 0 | % | |||||||||||
Net recoveries/(charge-offs) | (125 | ) | (79 | ) | (46 | ) | 58 | % | (33 | ) | (92 | ) | 279 | % | |||||||
Provision (benefit) to income | 249 | 71 | 178 | 251 | % | - | 249 | 100 | % | ||||||||||||
Allowance for credit losses, end of period | $ | 8,347 | $ | 8,223 | $ | 124 | 2 | % | $ | 8,249 | $ | 98 | 1 | % | |||||||
Ratio of net loans charged-off to average | |||||||||||||||||||||
gross loans outstanding, annualized | 0.07 | % | 0.05 | % | 0.02 | % | 0.02 | % | 0.05 | % | |||||||||||
Ratio of allowance for credit losses to | |||||||||||||||||||||
gross loans outstanding | 1.24 | % | 1.25 | % | -0.01 | % | 1.33 | % | -0.09 | % | |||||||||||
For the Nine Months Ended, | |||||||||||||||||||||
2023 | 2022 | $ Change | % Change | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Gross loans outstanding at end of period | $ | 671,969 | $ | 621,541 | $ | 50,428 | 8 | % | |||||||||||||
Average loans outstanding, gross | $ | 653,619 | $ | 612,922 | $ | 40,697 | 7 | % | |||||||||||||
Allowance for credit losses, beginning of period | $ | 8,236 | $ | 8,297 | $ | (61 | ) | -1 | % | ||||||||||||
Impact of CECL Adoption (ASC 326) | (157 | ) | |||||||||||||||||||
Commercial | (84 | ) | - | (84 | ) | -100 | % | ||||||||||||||
- | - | - | 0 | % | |||||||||||||||||
- | - | - | 0 | % | |||||||||||||||||
Consumer | (175 | ) | (76 | ) | (99 | ) | 130 | % | |||||||||||||
Total charge-offs | (259 | ) | (76 | ) | (183 | ) | 241 | % | |||||||||||||
Commercial | 27 | - | 27 | 100 | % | ||||||||||||||||
- | - | - | 0 | % | |||||||||||||||||
- | - | - | 0 | % | |||||||||||||||||
Consumer | 28 | 28 | - | 0 | % | ||||||||||||||||
Total recoveries | 55 | 28 | 27 | 96 | % | ||||||||||||||||
Net recoveries (charge-offs) | (204 | ) | (48 | ) | (156 | ) | 325 | % | |||||||||||||
Provision (benefit) to income | 472 | - | 472 | 100 | % | ||||||||||||||||
Allowance for credit losses, end of period | $ | 8,347 | $ | 8,249 | $ | 98 | 1 | % | |||||||||||||
Ratio of net loans charged-off to average | |||||||||||||||||||||
gross loans outstanding, annualized | 0.04 | % | 0.01 | % | 0.03 | % | |||||||||||||||
Ratio of allowance for credit losses to | |||||||||||||||||||||
gross loans outstanding | 1.24 | % | 1.33 | % | -0.09 | % |
ABOUT
Cautions Concerning Forward-Looking Statements
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other laws, including all statements in this release that are not historical facts or that relate to future plans or events or projected results of
Source:
2023 GlobeNewswire, Inc., source