The board of directors of
“Following our strong earnings momentum from the first quarter, we continued to post strong profits for both the current quarter and for the first half of 2023, highlighted by steady growth in our loan portfolio, and a solid net interest margin,” said
“We continue to maintain a high level of on-balance sheet cash and robust liquidity metrics. Though deposits decreased during the quarter due, largely to industry-wide competitive pricing pressures and normal seasonal declines in deposits balances combined with higher customer spending levels and customers moving excess funds to alternative higher yielding investments, deposit balances showed signs of stabilization during the latter part of the current quarter,” stated Portmann. “Our deposits are well-diversified and core deposits represent 93% of total deposits at
“Credit quality remains solid, aided by continued low levels of adversely classified and nonperforming loans. Our risk management protocols guide the growth of our loan portfolio as we carefully monitor loan concentrations to stay within regulatory guidelines, particularly in commercial real estate. As a result, charge-offs continued to be minimal,” added Portmann.
Second Quarter 2023 Financial Highlights
- Return on average assets (“ROAA”) was 1.30%, compared to 1.33% for the first quarter 2023, and 0.49% for the second quarter 2022.
- Return on average equity (“ROAE”) was 14.30%, compared to 15.63% from the preceding quarter, and 6.05% from the second quarter a year earlier.
- Net interest income was
$12.2 million , down 7% compared to$13.1 million for the first quarter of 2023, and increased 38% from$8.8 million for the second quarter of 2022. - Net interest margin (“NIM”) contracted 18 basis points to 4.33%, compared to 4.51% from the preceding quarter, and expanded 151 basis points from 2.82% in the second quarter a year ago.
- Gross loans balances increased
$13.1 million , or 2%, to$658.7 million atJune 30, 2023 , compared to$645.6 from the preceding quarter end and 9% or$51.8 million comparedJune 30, 2022 . - Total deposits declined
$32.9 million to$1.08 billion , compared to$1.11 billion from the first quarter 2023, with core deposits representing 93% of total deposits atJune 30, 2023 . Non-interest bearing deposits represented 41% of total deposits atJune 30, 2023 . - Asset quality remains solid with nonperforming assets to total assets unchanged at 0.08%, compared to nonperforming assets to total assets at 0.08% for the preceding quarter.
- Tangible book value per common share was
$9.15 atJune 30, 2023 , compared to$9.16 atMarch 31, 2023 , and$8.59 atJune 30, 2022 .
Liquidity
Liquidity metrics were robust with:
- Cash on hand or in banks of
$200 million , or 84% of uninsured and uncollateralized deposits, atJune 30, 2023 compared to$238 million atMarch 31, 2023 . - Coverage of short-term funds available to uninsured and uncollateralized deposits was 261% at
June 30, 2023 compared to 259% atMarch 31, 2023 . - Uninsured or uncollateralized deposits were 22% of total deposits at
June 30, 2023 compared to 23% atMarch 31, 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 on hand and in banks | $ | 199,707 | 19 | % | $ | 237,704 | 21 | % | $ | (37,997 | ) | -16 | % | $ | 373,847 | 31 | % | $ | (174,140 | ) | -47 | % | |||||||
104,898 | 10 | % | 116,886 | 11 | % | (11,988 | ) | -10 | % | 114,116 | 9 | % | (9,218 | ) | -8 | % | |||||||||||||
Secured lines of Credit (FHLB, FRB) | 316,214 | 29 | % | 318,179 | 29 | % | (1,965 | ) | -1 | % | 251,324 | 21 | % | 64,890 | 26 | % | |||||||||||||
Total short-term funds available | $ | 620,819 | 58 | % | $ | 672,769 | 61 | % | $ | (51,950 | ) | -8 | % | $ | 739,287 | 61 | % | $ | (118,468 | ) | -16 | % | |||||||
2023 | 2023 | 2022 | |||||||||||||||||||||||||||
Short-term funds available to uninsured/uncollateralized deposits | 261 | % | 259 | % | 226 | % | |||||||||||||||||||||||
Uninsured/uncollateralized deposits to total deposits | 22 | % | 23 | % | 27 | % | |||||||||||||||||||||||
Gross loans to deposits ratio | 60 | % | 57 | % | 50 | % | |||||||||||||||||||||||
Income Statement Review
Net interest income declined 7% to
During the current quarter, the decrease in net interest income compared to the first quarter of 2023 was primarily a result of funding costs growth outpacing growth in average interest earning asset yields. The increases in both net interest income and net interest margin year-over-year were largely due to increased yields on all categories of interest earning assets which outpaced growth in funding costs during those same time periods. The increase in average yields on interest-earning assets during the current quarter and first half of 2023 reflects the benefit of variable rate interest-earning assets repricing higher, as well as new loans being originated at higher interest rates. As a result, average loan yields for the current quarter increased 11 basis points to 5.55% compared to the preceding quarter of 5.44%, and increased 85 basis points from 4.70% from the second quarter of 2022. The yield on interest-bearing bank deposits increased 48 basis points to 5.09% for the current quarter, compared to 4.61% for the preceding quarter, and increased 425 basis points from 0.84% from the second quarter of 2022. The Bank’s total cost of funds increased to 0.58% for the current quarter, compared to 0.21% for the preceding quarter, and 0.08% for the second quarter of 2022. The increases in deposit cost of funds were largely a result of increases in money market and certificate of deposit rates early in the current quarter due to competitive rate pressures, as well as an increase in LIBOR-based junior subordinated debentures borrowing costs.
Noninterest income was
While mortgage production improved during the current quarter, higher mortgage interest rates and housing prices, as well as tight housing supply continue to impact home financing activities and home purchases within our markets. Correspondingly, we continue to manage our staffing levels in this line of business. “Recent increases in mortgage rates have moderated demand for refinancing. Demand for purchase financing has slowed as the increase in mortgage rates are beginning to price some prospective purchasers out of the market,”
For the first six months of 2023, noninterest income declined to 3.0 million compared to
Noninterest expense declined to
Federal and
Balance Sheet Review
Total Assets decreased 3% to
Gross loans balances increased
The Bank also 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 increased 1% 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. Our loan pipeline continues to be strongly supported by continued 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
“Our sustained strength in asset quality metrics, including ongoing low levels of nonperforming assets, past due loans, and loan charge-offs, reflects our persistent emphasis on solid loan underwriting and our borrowers’ demonstrated ability to meet the challenges posed by the current operating environment. As part of our standard risk management program, we will continue to closely monitor our loan portfolio for any signs of a systemic decline in credit quality and will seek to swiftly implement curative measures to mitigate the impact of any identified credit issues on our overall financial condition,” noted
Adoption of New Accounting Standard In
Allowance for Credit Losses (“ACL”) was
Total Deposits were
Shareholder’s Equity was relatively flat at
The small decrease in book value per common share quarter-over-quarter was largely due to a decrease in the comprehensive income due to unrealized loss on available for sale securities partially offset by quarterly net income. With the increase in longer-term market interest rates during the quarter, the unrealized loss on available for sale securities increased 2% or
Financial Performance Overview | ||||||||||||||
(Unaudited) | ||||||||||||||
For the Three Months Ended | ||||||||||||||
2023 | 2023 | Change | 2022 | Change | ||||||||||
Performance Ratios | ||||||||||||||
Return on average assets, annualized | 1.30 | % | 1.33 | % | (0.03 | ) | 0.49 | % | 0.81 | |||||
Return on average equity, annualized | 14.30 | % | 15.63 | % | (1.33 | ) | 6.05 | % | 8.25 | |||||
Efficiency ratio (1) | 64.26 | % | 63.91 | % | 0.35 | 82.18 | % | (17.92 | ) | |||||
(1) Non-interest expense divided by net interest income plus noninterest income. | ||||||||||||||
For the Six Months Ended, | ||||||||||||||
2023 | 2022 | Change | ||||||||||||
Performance Ratios | ||||||||||||||
Return on average assets, annualized | 1.31 | % | 0.50 | % | 0.81 | |||||||||
Return on average equity, annualized | 14.95 | % | 5.93 | % | 9.02 | |||||||||
Efficiency ratio (1) | 64.08 | % | 82.32 | % | (18.24 | ) | ||||||||
(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 | $ | 14,880 | $ | 16,593 | $ | (1,713 | ) | -10 | % | $ | 16,434 | $ | (1,554 | ) | -9 | % | ||||||
Interest bearing deposits | 197,952 | 235,958 | (38,006 | ) | -16 | % | 199,431 | (1,479 | ) | -1 | % | |||||||||||
Federal funds sold | - | - | - | 0 | % | 169,597 | (169,597 | ) | -100 | % | ||||||||||||
Investment securities | 276,366 | 285,925 | (9,559 | ) | -3 | % | 274,330 | 2,036 | 1 | % | ||||||||||||
Loans held-for-sale | 590 | 249 | 341 | 137 | % | 2,477 | (1,887 | ) | -76 | % | ||||||||||||
Loans, net of deferred fees | 657,950 | 644,901 | 13,049 | 2 | % | 606,336 | 51,614 | 9 | % | |||||||||||||
Allowance for loan losses | (8,223 | ) | (8,231 | ) | 8 | 0 | % | (8,282 | ) | 59 | -1 | % | ||||||||||
Net loans | 649,727 | 636,670 | 13,057 | 2 | % | 598,054 | 51,673 | 9 | % | |||||||||||||
2,567 | 2,567 | - | 0 | % | 2,596 | (29 | ) | -1 | % | |||||||||||||
Other assets | 66,473 | 65,572 | 901 | 1 | % | 64,967 | 1,506 | 2 | % | |||||||||||||
Total assets | $ | 1,208,555 | $ | 1,243,534 | $ | (34,979 | ) | -3 | % | $ | 1,327,886 | $ | (119,331 | ) | -9 | % | ||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||||||
Total deposits | $ | 1,077,493 | $ | 1,110,368 | $ | (32,875 | ) | -3 | % | $ | 1,203,509 | $ | (126,016 | ) | -10 | % | ||||||
Borrowings | 13,403 | 13,403 | - | 0 | % | 13,731 | (328 | ) | -2 | % | ||||||||||||
Accrued interest payable and other liabilities | 8,794 | 10,848 | (2,054 | ) | -19 | % | 7,892 | 902 | 11 | % | ||||||||||||
Shareholders' equity | 108,865 | 108,915 | (50 | ) | 0 | % | 102,754 | 6,111 | 6 | % | ||||||||||||
Total liabilities and shareholders' equity | $ | 1,208,555 | $ | 1,243,534 | $ | (34,979 | ) | -3 | % | $ | 1,327,886 | $ | (119,331 | ) | -9 | % | ||||||
Common Shares Outstanding | 10,427,224 | 10,424,294 | 2,930 | 0 | % | 10,392,738 | 34,486 | 0 | % | |||||||||||||
Book value per common share (1) | $ | 10.44 | $ | 10.45 | $ | (0.01 | ) | 0 | % | $ | 9.89 | $ | 0.55 | 6 | % | |||||||
Tangible book value per common share (2) | $ | 9.15 | $ | 9.16 | $ | (0.01 | ) | 0 | % | $ | 8.59 | $ | 0.56 | 7 | % | |||||||
(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 | $ | 13,735 | $ | 13,690 | $ | 45 | 0 | % | $ | 9,097 | $ | 4,638 | 51 | % | ||||||||
Interest expense | 1,564 | 593 | 971 | 164 | % | 253 | 1,311 | 518 | % | |||||||||||||
Net interest income | 12,171 | 13,097 | (926 | ) | -7 | % | 8,844 | 3,327 | 38 | % | ||||||||||||
Loan loss provision | 71 | 151 | (80 | ) | -53 | % | - | 71 | 100 | % | ||||||||||||
Noninterest income | 1,747 | 1,287 | 460 | 36 | % | 1,864 | (117 | ) | -6 | % | ||||||||||||
Noninterest expense | 8,944 | 9,193 | (249 | ) | -3 | % | 8,800 | 144 | 2 | % | ||||||||||||
Income before income taxes | 4,903 | 5,040 | (137 | ) | -3 | % | 1,908 | 2,995 | 157 | % | ||||||||||||
Income tax expense | 994 | 930 | 64 | 7 | % | 310 | 684 | 221 | % | |||||||||||||
Net Income | $ | 3,909 | $ | 4,110 | $ | (201 | ) | -5 | % | $ | 1,598 | $ | 2,311 | 145 | % | |||||||
Average common shares outstanding - basic | 10,424,391 | 10,418,292 | 6,099 | 0 | % | 10,392,738 | 31,653 | 0 | % | |||||||||||||
Average common shares outstanding - diluted | 10,430,494 | 10,432,245 | (1,751 | ) | 0 | % | 10,422,073 | 8,421 | 0 | % | ||||||||||||
Income per common share | ||||||||||||||||||||||
Basic | $ | 0.37 | $ | 0.39 | $ | (0.02 | ) | -5 | % | $ | 0.15 | $ | 0.22 | 147 | % | |||||||
Diluted | $ | 0.37 | $ | 0.39 | $ | (0.02 | ) | -5 | % | $ | 0.15 | $ | 0.22 | 147 | % | |||||||
Effective tax rate | 20.3 | % | 18.5 | % | 1.8 | % | 16.2 | % | 4.1 | % | ||||||||||||
For the Six Months Ended, | ||||||||||||||||||||||
2023 | 2022 | $ Change | % Change | |||||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||||
Interest and dividend income | $ | 27,425 | $ | 17,623 | $ | 9,802 | 56 | % | ||||||||||||||
Interest expense | 2,157 | 492 | 1,665 | 338 | % | |||||||||||||||||
Net interest income | 25,268 | 17,131 | 8,137 | 47 | % | |||||||||||||||||
Loan loss provision | 223 | - | 223 | 100 | % | |||||||||||||||||
Noninterest income | 3,034 | 3,976 | (942 | ) | -24 | % | ||||||||||||||||
Noninterest expense | 18,136 | 17,376 | 760 | 4 | % | |||||||||||||||||
Income before income taxes | 9,943 | 3,731 | 6,212 | 166 | % | |||||||||||||||||
Income tax expense | 1,924 | 476 | 1,448 | 304 | % | |||||||||||||||||
Net Income | $ | 8,019 | $ | 3,255 | $ | 4,764 | 146 | % | ||||||||||||||
Average common shares outstanding - basic | 10,421,358 | 10,391,624 | 29,734 | 0 | % | |||||||||||||||||
Average common shares outstanding - diluted | 10,431,406 | 10,423,499 | 7,907 | 0 | % | |||||||||||||||||
Income per common share | ||||||||||||||||||||||
Basic | $ | 0.77 | $ | 0.31 | $ | 0.46 | 148 | % | ||||||||||||||
Diluted | $ | 0.77 | $ | 0.31 | $ | 0.46 | 148 | % | ||||||||||||||
Effective tax rate | 19.4 | % | 12.8 | % | 6.6 | % | ||||||||||||||||
Noninterest Income | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
For the Three Months Ended, | ||||||||||||||||||||||
2023 | 2023 | $ Change | % Change | 2022 | $ Change | % Change | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Service charges on deposits | $ | 509 | $ | 473 | $ | 36 | 8 | % | $ | 420 | $ | 89 | 21 | % | ||||||||
Gain on sale of loans, net | 260 | 111 | 149 | 134 | % | 366 | (106 | ) | -29 | % | ||||||||||||
Gain on sale of securities available for sale, net | - | (154 | ) | 154 | 0 | % | - | - | 0 | % | ||||||||||||
Earnings on bank owned life insurance | 172 | 164 | 8 | 5 | % | 170 | 2 | 1 | % | |||||||||||||
Other noninterest income | ||||||||||||||||||||||
Fee income | 759 | 705 | 54 | 8 | % | 909 | (150 | ) | -17 | % | ||||||||||||
Other | 47 | (12 | ) | 59 | -492 | % | (1 | ) | 48 | -4800 | % | |||||||||||
Total noninterest income | $ | 1,747 | $ | 1,287 | $ | 460 | 36 | % | $ | 1,864 | $ | (117 | ) | -6 | % | |||||||
For the Six Months Ended, | ||||||||||||||||||||||
2023 | 2022 | $ Change | % Change | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Service charges on deposits | $ | 982 | $ | 802 | $ | 180 | 22 | % | ||||||||||||||
Gain on sale of loans, net | 371 | 1,044 | (673 | ) | -64 | % | ||||||||||||||||
Gain on sale of securities available for sale, net | (154 | ) | - | (154 | ) | -100 | % | |||||||||||||||
Earnings on bank owned life insurance | 336 | 354 | (18 | ) | -5 | % | ||||||||||||||||
Other noninterest income | ||||||||||||||||||||||
Fee income | 1,615 | 1,775 | (160 | ) | -9 | % | ||||||||||||||||
Other | (116 | ) | 1 | (117 | ) | -11700 | % | |||||||||||||||
Total noninterest income | $ | 3,034 | $ | 3,976 | $ | (942 | ) | -24 | % | |||||||||||||
Noninterest Expense | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
For the Three Months Ended, | |||||||||||||||||||
2023 | 2023 | $ Change | % Change | 2022 | $ Change | % Change | |||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Salaries and employee benefits | $ | 5,661 | $ | 5,785 | $ | (124 | ) | -2 | % | $ | 5,661 | $ | - | 0 | % | ||||
Occupancy | 504 | 531 | (27 | ) | -5 | % | 506 | (2 | ) | 0 | % | ||||||||
Equipment | 269 | 287 | (18 | ) | -6 | % | 311 | (42 | ) | -14 | % | ||||||||
Data processing | 922 | 951 | (29 | ) | -3 | % | 889 | 33 | 4 | % | |||||||||
Professional services | 204 | 241 | (37 | ) | -15 | % | 195 | 9 | 5 | % | |||||||||
State and local taxes | 207 | 178 | 29 | 16 | % | 161 | 46 | 29 | % | ||||||||||
154 | 154 | - | 0 | % | 101 | 53 | 52 | % | |||||||||||
Other noninterest expense: | |||||||||||||||||||
Director fees | 76 | 71 | 5 | 7 | % | 75 | 1 | 1 | % | ||||||||||
Communication | 62 | 59 | 3 | 5 | % | 68 | (6 | ) | -9 | % | |||||||||
Advertising | 52 | 60 | (8 | ) | -13 | % | 118 | (66 | ) | -56 | % | ||||||||
Professional liability insurance | 69 | 67 | 2 | 3 | % | 63 | 6 | 10 | % | ||||||||||
Amortization | 43 | 44 | (1 | ) | -2 | % | 46 | (3 | ) | -7 | % | ||||||||
Other | 721 | 765 | (44 | ) | -6 | % | 606 | 115 | 19 | % | |||||||||
Total noninterest expense | $ | 8,944 | $ | 9,193 | $ | (249 | ) | -3 | % | $ | 8,800 | $ | 144 | 2 | % | ||||
For the Six Months Ended, | |||||||||||||||||||
2023 | 2022 | $ Change | % Change | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Salaries and employee benefits | $ | 11,446 | $ | 11,177 | $ | 269 | 2 | % | |||||||||||
Occupancy | 1,035 | 1,026 | 9 | 1 | % | ||||||||||||||
Equipment | 556 | 598 | (42 | ) | -7 | % | |||||||||||||
Data processing | 1,874 | 1,744 | 130 | 7 | % | ||||||||||||||
Professional services | 445 | 397 | 48 | 12 | % | ||||||||||||||
State and local taxes | 385 | 319 | 66 | 21 | % | ||||||||||||||
308 | 201 | 107 | 53 | % | |||||||||||||||
Other noninterest expense: | |||||||||||||||||||
Director fees | 147 | 150 | (3 | ) | -2 | % | |||||||||||||
Communication | 121 | 135 | (14 | ) | -10 | % | |||||||||||||
Advertising | 112 | 144 | (32 | ) | -22 | % | |||||||||||||
Professional liability insurance | 136 | 122 | 14 | 11 | % | ||||||||||||||
Amortization | 87 | 92 | (5 | ) | -5 | % | |||||||||||||
Other | 1,484 | 1,271 | 213 | 17 | % | ||||||||||||||
Total noninterest expense | $ | 18,136 | $ | 17,376 | $ | 760 | 4 | % | |||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
2023 | % of Total | 2023 | % of Total | $ Change | % Change | 2022 | % of Total | $ Change | % Change | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | $ | 117,448 | 43 | % | $ | 122,992 | 43 | % | $ | (5,544 | ) | -5 | % | $ | 84,807 | 30 | % | $ | 32,641 | 38 | % | |||||||||||
Mortgage backed securities | 31,346 | 11 | % | 32,294 | 11 | % | (948 | ) | -3 | % | 35,017 | 13 | % | (3,671 | ) | -10 | % | |||||||||||||||
83,319 | 30 | % | 84,814 | 30 | % | (1,495 | ) | -2 | % | 86,988 | 32 | % | (3,669 | ) | -4 | % | ||||||||||||||||
Municipal securities | 44,253 | 16 | % | 44,827 | 16 | % | (574 | ) | -1 | % | 65,539 | 24 | % | (21,286 | ) | -32 | % | |||||||||||||||
Corporate debt securities | - | 0 | % | 998 | 0 | % | (998 | ) | -100 | % | 1,979 | 1 | % | (1,979 | ) | -100 | % | |||||||||||||||
Total | $ | 276,366 | 100 | % | $ | 285,925 | 100 | % | $ | (9,559 | ) | -3 | % | $ | 274,330 | 100 | % | $ | 2,036 | 1 | % | |||||||||||
Held to maturity securities | $ | 57,464 | 21 | % | $ | 58,595 | 20 | % | $ | (1,131 | ) | -2 | % | $ | 61,482 | 22 | % | $ | (4,018 | ) | -7 | % | ||||||||||
Available for sale securities | $ | 218,902 | 79 | % | $ | 227,330 | 80 | % | $ | (8,428 | ) | -4 | % | $ | 212,848 | 78 | % | $ | 6,054 | 3 | % | |||||||||||
$ | 232,076 | 84 | % | $ | 240,061 | 84 | % | $ | (7,985 | ) | -3 | % | $ | 206,763 | 75 | % | $ | 25,313 | 12 | % | ||||||||||||
$ | 43,086 | 16 | % | $ | 44,614 | 16 | % | $ | (1,528 | ) | -3 | % | $ | 66,187 | 24 | % | $ | (23,101 | ) | -35 | % | |||||||||||
Non-rated securities | $ | 1,204 | 0 | % | $ | 1,250 | 0 | % | $ | (46 | ) | -4 | % | $ | 1,380 | 1 | % | $ | (176 | ) | -13 | % | ||||||||||
AFS Unrealized Gain (Loss) | $ | (23,900 | ) | -9 | % | $ | (20,518 | ) | -7 | % | $ | (3,382 | ) | -2 | % | $ | (18,274 | ) | -7 | % | $ | (5,626 | ) | -2 | % | |||||||
Loans by Category | |||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||
2023 | % of Gross Loans | % of Gross Loans | $ Change | % Change | % of Gross Loans | $ Change | % Change | ||||||||||||||||||||||||
Commercial: | (Dollars in thousands) | ||||||||||||||||||||||||||||||
Commercial and agricultural | $ | 70,422 | 11 | % | $ | 75,279 | 12 | % | $ | (4,857 | ) | -6 | % | $ | 80,041 | 13 | % | $ | (9,619 | ) | -12 | % | |||||||||
PPP | 370 | 0 | % | 405 | 0 | % | (35 | ) | -9 | % | 570 | 0 | % | (200 | ) | -35 | % | ||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||
Construction and development | 37,781 | 6 | % | 34,918 | 5 | % | 2,863 | 8 | % | 34,750 | 6 | % | 3,031 | 9 | % | ||||||||||||||||
Residential 1-4 family | 87,002 | 13 | % | 85,380 | 13 | % | 1,622 | 2 | % | 63,377 | 10 | % | 23,625 | 37 | % | ||||||||||||||||
Multi-family | 44,854 | 7 | % | 40,882 | 6 | % | 3,972 | 10 | % | 39,428 | 6 | % | 5,426 | 14 | % | ||||||||||||||||
Commercial real estate -- owner occupied | 166,594 | 24 | % | 160,534 | 25 | % | 6,060 | 4 | % | 150,533 | 25 | % | 16,061 | 11 | % | ||||||||||||||||
Commercial real estate -- non owner occupied | 155,002 | 24 | % | 151,923 | 24 | % | 3,079 | 2 | % | 149,093 | 25 | % | 5,909 | 4 | % | ||||||||||||||||
Farmland | 25,936 | 4 | % | 26,451 | 4 | % | (515 | ) | -2 | % | 26,051 | 5 | % | (115 | ) | 0 | % | ||||||||||||||
Consumer | 70,738 | 11 | % | 69,867 | 11 | % | 871 | 1 | % | 63,047 | 10 | % | 7,691 | 12 | % | ||||||||||||||||
Gross Loans | 658,699 | 100 | % | 645,639 | 100 | % | 13,060 | 2 | % | 606,890 | 100 | % | 51,809 | 9 | % | ||||||||||||||||
Less: allowance for loan losses | (8,223 | ) | (8,231 | ) | 8 | (8,282 | ) | 59 | |||||||||||||||||||||||
Less: deferred fees | (749 | ) | (738 | ) | (11 | ) | (554 | ) | (195 | ) | |||||||||||||||||||||
Net loans | $ | 649,727 | $ | 636,670 | $ | 13,057 | $ | 598,054 | $ | 51,673 | |||||||||||||||||||||
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 | $ | 70,422 | 52 | % | $ | 75,279 | 57 | % | -4 | % | $ | 80,041 | 64 | % | -11 | % | |||||||||||||||
PPP | 370 | 0 | % | 405 | 0 | % | 0 | % | 570 | 0 | % | 0 | % | ||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||
Construction and development | 37,781 | 28 | % | 34,918 | 26 | % | 2 | % | 34,750 | 28 | % | 0 | % | ||||||||||||||||||
Residential 1-4 family | 87,002 | 64 | % | 85,380 | 64 | % | 2 | % | 63,377 | 51 | % | 15 | % | ||||||||||||||||||
Multi-family | 44,854 | 33 | % | 40,882 | 31 | % | 3 | % | 39,428 | 32 | % | 2 | % | ||||||||||||||||||
Commercial real estate -- owner occupied | 166,594 | 123 | % | 160,534 | 121 | % | 5 | % | 150,533 | 121 | % | 5 | % | ||||||||||||||||||
Commercial real estate -- non owner occupied | 155,002 | 115 | % | 151,923 | 115 | % | 2 | % | 149,093 | 119 | % | -2 | % | ||||||||||||||||||
Farmland | 25,936 | 19 | % | 26,451 | 20 | % | 0 | % | 26,051 | 21 | % | -1 | % | ||||||||||||||||||
Consumer | 70,738 | 52 | % | 69,867 | 53 | % | 0 | % | 63,047 | 51 | % | 2 | % | ||||||||||||||||||
Gross Loans | $ | 658,699 | $ | 645,639 | $ | 606,890 | |||||||||||||||||||||||||
Regulatory | $ | 235,318 | 174 | % | $ | 225,163 | 170 | % | 7 | % | $ | 220,881 | 177 | % | 0 | % | |||||||||||||||
Total Risk Based Capital* | $ | 135,106 | $ | 132,579 | $ | 124,810 | |||||||||||||||||||||||||
* | |||||||||||||||||||||||||||||||
Deposits by Category | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
2023 | % of Total | 2023 | % of Total | $ Change | % Change | 2022 | % of Total | $ Change | % Change | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Interest-bearing demand | $ | 226,696 | 22 | % | $ | 215,853 | 20 | % | $ | 10,843 | 5 | % | $ | 260,712 | 21 | % | $ | (34,016 | ) | -13 | % | ||||||
Money market | 177,210 | 16 | % | 183,066 | 16 | % | (5,856 | ) | -3 | % | 214,218 | 18 | % | (37,008 | ) | -17 | % | ||||||||||
Savings | 151,406 | 14 | % | 165,694 | 15 | % | (14,288 | ) | -9 | % | 176,790 | 15 | % | (25,384 | ) | -14 | % | ||||||||||
Time deposits (CDs) | 75,403 | 7 | % | 65,231 | 6 | % | 10,172 | 16 | % | 52,241 | 4 | % | 23,162 | 44 | % | ||||||||||||
Total interest-bearing deposits | 630,715 | 59 | % | 629,844 | 57 | % | 871 | 0 | % | 703,961 | 58 | % | (73,246 | ) | -10 | % | |||||||||||
Non-interest bearing demand | 446,778 | 41 | % | 480,524 | 43 | % | (33,746 | ) | -7 | % | 499,548 | 42 | % | (52,770 | ) | -11 | % | ||||||||||
Total deposits | $ | 1,077,493 | 100 | % | $ | 1,110,368 | 100 | % | $ | (32,875 | ) | -3 | % | $ | 1,203,509 | 100 | % | $ | (126,016 | ) | -10 | % | |||||
Insured Deposits | $ | 678,027 | 63 | % | $ | 700,960 | 64 | % | $ | (22,933 | ) | -3 | % | $ | 730,449 | 61 | % | $ | (52,422 | ) | -7 | % | |||||
Collateralized Deposits | 161,482 | 15 | % | 149,856 | 13 | % | 11,626 | 8 | % | 145,397 | 12 | % | 16,085 | 11 | % | ||||||||||||
Uninsured Deposits | 237,984 | 22 | % | 259,552 | 23 | % | (21,568 | ) | -8 | % | 327,663 | 27 | % | (89,679 | ) | -27 | % | ||||||||||
Total Deposits | $ | 1,077,493 | 100 | % | $ | 1,110,368 | 100 | % | $ | (32,875 | ) | -3 | % | $ | 1,203,509 | 100 | % | $ | (126,016 | ) | -10 | % | |||||
Consumer Deposits | $ | 479,665 | 45 | % | $ | 502,430 | 45 | % | $ | (22,765 | ) | -5 | % | $ | 548,944 | 45 | % | $ | (69,279 | ) | -13 | % | |||||
Business Deposits | 427,025 | 40 | % | 447,778 | 40 | % | (20,753 | ) | -5 | % | 500,105 | 42 | % | (73,080 | ) | -15 | % | ||||||||||
Public Deposits | 170,803 | 15 | % | 160,160 | 15 | % | 10,643 | 7 | % | 154,460 | 13 | % | 16,343 | 11 | % | ||||||||||||
Total Deposits | $ | 1,077,493 | 100 | % | $ | 1,110,368 | 100 | % | $ | (32,875 | ) | -3 | % | $ | 1,203,509 | 100 | % | $ | (126,016 | ) | -10 | % | |||||
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 | 17.8 | % | 17.5 | % | - | 16.7 | % | 0.8 | N/A | ||||||
Tier 1 risk-based capital ratio | 16.6 | % | 16.3 | % | - | 15.6 | % | 0.7 | N/A | ||||||
Common equity tier 1 ratio | 14.9 | % | 14.6 | % | - | 13.9 | % | 0.7 | N/A | ||||||
Leverage ratio | 10.8 | % | 9.9 | % | - | 8.9 | % | 1.0 | N/A | ||||||
Tangible common equity ratio | 8.0 | % | 7.8 | % | - | 6.8 | % | 1.0 | N/A | ||||||
Total risk-based capital ratio | 17.7 | % | 17.4 | % | - | 16.7 | % | 0.7 | 10.5% | ||||||
Tier 1 risk-based capital ratio | 16.5 | % | 16.2 | % | - | 15.6 | % | 0.6 | 8.5% | ||||||
Common equity tier 1 ratio | 16.5 | % | 16.2 | % | - | 15.6 | % | 0.6 | 7.0% | ||||||
Leverage ratio | 10.5 | % | 9.8 | % | - | 8.9 | % | 0.9 | 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 | $ | 651,472 | $ | 643,851 | $ | 7,621 | 1 | % | $ | 607,332 | $ | 44,140 | 7 | % | ||||||
Gross loans without PPP | $ | 651,081 | $ | 643,414 | $ | 7,667 | 1 | % | $ | 604,824 | $ | 46,257 | 8 | % | ||||||
Loans held for sale | $ | 722 | $ | 584 | $ | 138 | 24 | % | $ | 2,561 | $ | (1,839 | ) | -72 | % | |||||
Investment securities | $ | 284,902 | $ | 287,714 | $ | (2,812 | ) | -1 | % | $ | 259,643 | $ | 25,259 | 10 | % | |||||
Federal funds sold & interest bearing deposits in banks | $ | 196,409 | $ | 251,118 | $ | (54,709 | ) | -22 | % | $ | 372,181 | $ | (175,772 | ) | -47 | % | ||||
Total interest-earning assets | $ | 1,133,505 | $ | 1,183,267 | $ | (49,762 | ) | -4 | % | $ | 1,241,717 | $ | (108,212 | ) | -9 | % | ||||
Non-interest bearing demand deposits | $ | 448,788 | $ | 483,135 | $ | (34,347 | ) | -7 | % | $ | 492,912 | $ | (44,124 | ) | -9 | % | ||||
Interest bearing deposits | $ | 624,051 | $ | 643,972 | $ | (19,921 | ) | -3 | % | $ | 694,671 | $ | (70,620 | ) | -10 | % | ||||
Total Deposits | $ | 1,072,839 | $ | 1,127,107 | $ | (54,268 | ) | -5 | % | $ | 1,187,583 | $ | (114,744 | ) | -10 | % | ||||
Borrowings | $ | 13,403 | $ | 13,403 | $ | - | 0 | % | $ | 13,745 | $ | (342 | ) | -2 | % | |||||
Total interest-bearing liabilities | $ | 637,454 | $ | 657,375 | $ | (19,921 | ) | -3 | % | $ | 708,416 | $ | (70,962 | ) | -10 | % | ||||
Total Equity | $ | 109,662 | $ | 106,612 | $ | 3,050 | 3 | % | $ | 105,922 | $ | 3,740 | 4 | % | ||||||
For the Three Months Ended, | ||||||||||||||||||||
2023 | 2023 | Change | 2022 | Change | ||||||||||||||||
Yield on average gross loans (1) | 5.55 | % | 5.44 | % | 0.11 | 4.70 | % | 0.85 | ||||||||||||
Yield on average gross loans without PPP (1) | 5.55 | % | 5.44 | % | 0.11 | 4.57 | % | 0.98 | ||||||||||||
Yield on average investment securities (1) | 3.21 | % | 3.20 | % | 0.01 | 1.96 | % | 1.25 | ||||||||||||
Yield on Fed funds sold & interest bearing deposits in banks | 5.09 | % | 4.61 | % | 0.48 | 0.84 | % | 4.25 | ||||||||||||
Cost of average interest bearing deposits | 0.86 | % | 0.24 | % | 0.62 | 0.10 | % | 0.76 | ||||||||||||
Cost of average borrowings | 6.67 | % | 6.45 | % | 0.22 | 2.54 | % | 4.13 | ||||||||||||
Cost of average total deposits and borrowings | 0.58 | % | 0.21 | % | 0.37 | 0.08 | % | 0.50 | ||||||||||||
Yield on average interest-earning assets | 4.88 | % | 4.72 | % | 0.16 | 2.97 | % | 1.91 | ||||||||||||
Cost of average interest-bearing liabilities | 0.98 | % | 0.37 | % | 0.61 | 0.14 | % | 0.84 | ||||||||||||
Net interest spread | 3.90 | % | 4.35 | % | (0.45 | ) | 2.83 | % | 1.07 | |||||||||||
Net interest spread without PPP | 3.90 | % | 4.35 | % | (0.45 | ) | 2.76 | % | 1.14 | |||||||||||
Net interest margin (1) | 4.33 | % | 4.51 | % | (0.18 | ) | 2.89 | % | 1.44 | |||||||||||
Net interest margin without PPP (1) | 4.33 | % | 4.51 | % | (0.18 | ) | 2.82 | % | 1.51 | |||||||||||
(1) Tax-exempt income has been adjusted to a tax equivalent basis at a rate of 21%. | ||||||||||||||||||||
For the Six Months Ended, | ||||||||||||||||||||
2023 | 2022 | $ Change | % Change | |||||||||||||||||
Average Balances | (Dollars in thousands) | |||||||||||||||||||
Gross loans | $ | 647,682 | $ | 614,333 | $ | 33,349 | 5 | % | ||||||||||||
Gross loans without PPP | $ | 647,268 | $ | 604,414 | $ | 42,854 | 7 | % | ||||||||||||
Loans held for sale | $ | 654 | $ | 3,112 | $ | (2,458 | ) | -79 | % | |||||||||||
Investment securities | $ | 286,300 | $ | 250,912 | $ | 35,388 | 14 | % | ||||||||||||
Federal funds sold & interest bearing deposits in banks | $ | 223,612 | $ | 380,495 | $ | (156,883 | ) | -41 | % | |||||||||||
Interest-earning assets | $ | 1,158,248 | $ | 1,248,852 | $ | (90,604 | ) | -7 | % | |||||||||||
Non-interest bearing demand deposits | $ | 465,867 | $ | 494,862 | $ | (28,995 | ) | -6 | % | |||||||||||
Interest bearing deposits | $ | 633,956 | $ | 694,015 | $ | (60,059 | ) | -9 | % | |||||||||||
Total Deposits | $ | 1,099,823 | $ | 1,188,877 | $ | (89,054 | ) | -7 | % | |||||||||||
Borrowings | $ | 13,401 | $ | 13,761 | $ | (360 | ) | -3 | % | |||||||||||
Interest-bearing liabilities | $ | 647,357 | $ | 707,776 | $ | (60,419 | ) | -9 | % | |||||||||||
Total Equity | $ | 108,146 | $ | 110,766 | $ | (2,620 | ) | -2 | % | |||||||||||
For the Six Months Ended, | ||||||||||||||||||||
2023 | 2022 | Change | ||||||||||||||||||
Net Interest Margin | ||||||||||||||||||||
Yield on average gross loans (1) | 5.49 | % | 4.75 | % | 0.74 | |||||||||||||||
Yield on average gross loans without PPP (1) | 5.49 | % | 4.51 | % | 0.98 | |||||||||||||||
Yield on average investment securities (1) | 3.20 | % | 1.85 | % | 1.35 | |||||||||||||||
Yield on Fed funds sold & interest bearing deposits in banks | 4.82 | % | 0.52 | % | 4.30 | |||||||||||||||
Cost of average interest bearing deposits | 0.55 | % | 0.10 | % | 0.45 | |||||||||||||||
Cost of average borrowings | 6.56 | % | 2.20 | % | 4.36 | |||||||||||||||
Cost of average total deposits and borrowings | 0.39 | % | 0.08 | % | 0.31 | |||||||||||||||
Yield on average interest-earning assets | 4.80 | % | 2.88 | % | 1.92 | |||||||||||||||
Cost of average interest-bearing liabilities | 0.67 | % | 0.14 | % | 0.53 | |||||||||||||||
Net interest spread | 4.13 | % | 2.74 | % | 1.39 | |||||||||||||||
Net interest spread without PPP | 4.13 | % | 2.60 | % | 1.53 | |||||||||||||||
Net interest margin (1) | 4.42 | % | 2.80 | % | 1.62 | |||||||||||||||
Net interest margin without PPP (1) | 4.42 | % | 2.66 | % | 1.76 | |||||||||||||||
(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 | $ | 4,755 | $ | 2,884 | $ | 1,871 | 65 | % | $ | 8,122 | $ | (3,367 | ) | -41 | % | ||||||
Addition of previously classified pass graded loans | 981 | 2,237 | (1,256 | ) | -56 | % | - | 981 | 100 | % | |||||||||||
Upgrades to pass or other loans especially mentioned status | - | - | - | 0 | % | (601 | ) | 601 | -100 | % | |||||||||||
Moved to nonaccrual | - | (241 | ) | 241 | -100 | % | (174 | ) | 174 | -100 | % | ||||||||||
Principal payments, net | (550 | ) | (125 | ) | (425 | ) | 340 | % | (247 | ) | (303 | ) | 123 | % | |||||||
Rated substandard or worse, but not impaired, end of three month period | $ | 5,186 | $ | 4,755 | $ | 431 | 9 | % | $ | 7,100 | $ | (1,914 | ) | -27 | % | ||||||
Impaired | 959 | 961 | (2 | ) | 0 | % | 2,853 | (1,894 | ) | -66 | % | ||||||||||
Total adversely classified loans¹ | $ | 6,145 | $ | 5,716 | $ | 429 | 8 | % | $ | 9,953 | $ | (3,808 | ) | -38 | % | ||||||
Other loans especially mentioned or watch, but not impaired | $ | 13,097 | $ | 12,666 | $ | 431 | 3 | % | $ | 31,395 | $ | (18,298 | ) | -58 | % | ||||||
Gross loans (excluding deferred loan fees) | $ | 658,699 | $ | 645,639 | $ | 13,060 | 2 | % | $ | 606,890 | $ | 51,809 | 9 | % | |||||||
Adversely classified loans to gross loans | 0.93 | % | 0.89 | % | 1.64 | % | |||||||||||||||
Adversely classified loans to gross loans without PPP | 0.93 | % | 0.89 | % | 1.64 | % | |||||||||||||||
Allowance for loan losses | $ | 8,223 | $ | 8,231 | $ | (8 | ) | 0 | % | $ | 8,282 | $ | (59 | ) | -1 | % | |||||
Allowance for loan losses as a percentage of adversely classified loans | 133.82 | % | 144.00 | % | 83.21 | % | |||||||||||||||
Allowance for loan losses to total impaired loans | 857.46 | % | 856.50 | % | 290.29 | % | |||||||||||||||
Adversely classified loans to total assets | 0.51 | % | 0.46 | % | 0.75 | % | |||||||||||||||
Delinquent loans to gross loans, not in nonaccrual status 2 | 0.01 | % | 0.03 | % | 0.09 | % | |||||||||||||||
Delinquent loans to gross loans without PPP, not in nonaccrual status | 0.01 | % | 0.03 | % | 0.09 | % | |||||||||||||||
¹Adversely 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 | $ | 961 | $ | 869 | $ | 92 | 11 | % | $ | 1,198 | $ | (237 | ) | -20 | % | ||||||
Transfer to performing loans | - | (21 | ) | 21 | -100 | % | - | - | 0 | % | |||||||||||
Addition of nonaccrual loans | 93 | 241 | (148 | ) | -61 | % | 113 | (20 | ) | -18 | % | ||||||||||
Moved to other assets owned | - | - | - | 0 | % | - | - | 0 | % | ||||||||||||
Principal payments, net | (95 | ) | (128 | ) | 33 | -26 | % | (71 | ) | (24 | ) | 34 | % | ||||||||
Charge-offs, net | - | - | - | 0 | % | - | - | 0 | % | ||||||||||||
Total nonaccrual loans, end of three month period | $ | 959 | $ | 961 | $ | (2 | ) | 0 | % | $ | 1,240 | $ | (281 | ) | -23 | % | |||||
Other real estate owned and foreclosed assets | - | - | - | 0 | % | 122 | (122 | ) | -100 | % | |||||||||||
Total nonperforming assets | $ | 959 | $ | 961 | $ | (2 | ) | 0 | % | $ | 1,362 | $ | (403 | ) | -30 | % | |||||
Accruing loans past due 90 days or more | $ | - | $ | - | $ | - | 0 | % | $ | - | $ | - | 0 | % | |||||||
Percentage of nonperforming assets to total assets | 0.08 | % | 0.08 | % | 0.10 | % | |||||||||||||||
Nonperforming loans to total loans | 0.15 | % | 0.15 | % | 0.20 | % | |||||||||||||||
Nonperforming loans to total loans without PPP | 0.15 | % | 0.15 | % | 0.20 | % | |||||||||||||||
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 | $ | 658,699 | $ | 645,639 | $ | 13,060 | 2 | % | $ | 606,890 | $ | 51,809 | 9 | % | |||||||
Average loans outstanding, gross | $ | 651,472 | $ | 643,851 | $ | 7,621 | 1 | % | $ | 607,332 | $ | 44,140 | 7 | % | |||||||
Allowance for credit losses, beginning of period | $ | 8,231 | $ | 8,236 | $ | (5 | ) | 0 | % | $ | 8,276 | $ | (45 | ) | -1 | % | |||||
Impact of CECL Adoption (ASC 326) | - | (157 | ) | 157 | -100 | % | - | - | 0 | % | |||||||||||
Commercial | (84 | ) | - | (84 | ) | -100 | % | - | (84 | ) | -100 | % | |||||||||
- | - | - | 0 | % | - | - | 0 | % | |||||||||||||
- | - | - | 0 | % | - | - | 0 | % | |||||||||||||
Consumer | (10 | ) | (39 | ) | 29 | -74 | % | (17 | ) | 7 | -41 | % | |||||||||
Total charge-offs | (94 | ) | (39 | ) | (55 | ) | 141 | % | (17 | ) | (77 | ) | 453 | % | |||||||
Commercial | - | 27 | (27 | ) | -100 | % | - | - | 0 | % | |||||||||||
- | - | - | 0 | % | - | - | 0 | % | |||||||||||||
- | - | - | 0 | % | - | - | 0 | % | |||||||||||||
Consumer | 15 | 13 | 2 | 15 | % | 23 | (8 | ) | -35 | % | |||||||||||
Total recoveries | 15 | 40 | (25 | ) | -63 | % | 23 | (8 | ) | -35 | % | ||||||||||
Net recoveries/(charge-offs) | (79 | ) | 1 | (80 | ) | -8000 | % | 6 | (85 | ) | -1417 | % | |||||||||
Provision (benefit) to income | 71 | 151 | (80 | ) | -53 | % | - | 71 | 100 | % | |||||||||||
Allowance for credit losses, end of period | $ | 8,223 | $ | 8,231 | $ | (8 | ) | 0 | % | $ | 8,282 | $ | (59 | ) | -1 | % | |||||
Ratio of net loans charged-off to average | |||||||||||||||||||||
gross loans outstanding, annualized | 0.05 | % | 0.00 | % | 0.05 | % | 0.00 | % | 0.05 | % | |||||||||||
Ratio of net loans charged-off to average | |||||||||||||||||||||
gross loans outstanding without PPP, annualized | 0.05 | % | 0.00 | % | 0.05 | % | 0.00 | % | 0.05 | % | |||||||||||
Ratio of allowance for credit losses to | |||||||||||||||||||||
gross loans outstanding | 1.25 | % | 1.27 | % | -0.02 | % | 1.36 | % | -0.11 | % | |||||||||||
Ratio of allowance for loan credit to | |||||||||||||||||||||
gross loans without PPP outstanding | 1.25 | % | 1.28 | % | -0.03 | % | 1.37 | % | -0.12 | % | |||||||||||
For the Six Months Ended, | |||||||||||||||||||||
2023 | 2022 | $ Change | % Change | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Gross loans outstanding at end of period | $ | 658,699 | $ | 606,890 | $ | 51,809 | 9 | % | |||||||||||||
Average loans outstanding, gross | $ | 647,682 | $ | 614,333 | $ | 33,349 | 5 | % | |||||||||||||
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 | (49 | ) | (42 | ) | (7 | ) | 17 | % | |||||||||||||
Total charge-offs | (133 | ) | (42 | ) | (91 | ) | 217 | % | |||||||||||||
Commercial | 27 | - | 27 | 100 | % | ||||||||||||||||
- | - | - | 0 | % | |||||||||||||||||
- | - | - | 0 | % | |||||||||||||||||
Consumer | 27 | 27 | - | 0 | % | ||||||||||||||||
Total recoveries | 54 | 27 | 27 | 100 | % | ||||||||||||||||
Net recoveries (charge-offs) | (79 | ) | (15 | ) | (64 | ) | 427 | % | |||||||||||||
Provision (benefit) to income | 223 | - | 223 | 100 | % | ||||||||||||||||
Allowance for credit losses, end of period | $ | 8,223 | $ | 8,282 | $ | (59 | ) | -1 | % | ||||||||||||
Ratio of net loans charged-off to average | |||||||||||||||||||||
gross loans outstanding, annualized | 0.01 | % | 0.00 | % | 0.01 | % | |||||||||||||||
Ratio of net loans charged-off to average | |||||||||||||||||||||
gross loans outstanding without PPP, annualized | 0.01 | % | 0.00 | % | 0.01 | % | |||||||||||||||
Ratio of allowance for credit losses to | |||||||||||||||||||||
gross loans outstanding | 1.25 | % | 1.36 | % | -0.11 | % | |||||||||||||||
Ratio of allowance for credit losses to | |||||||||||||||||||||
gross loans without PPP outstanding | 1.25 | % | 1.37 | % | -0.12 | % | |||||||||||||||
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
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