As previously disclosed, on
Breda continued, “We continue to be very excited about our transformational merger of equals with LINK and are diligently focused on the steps necessary to successfully complete the merger and combine our two exceptional organizations.”
Also as previously disclosed, on
Effective
The Company’s results for reporting periods beginning after
Change in Consolidated Balance Sheet | Tax Effect | Change to Retained Earnings from Adoption of CECL Standard | ||||
Allowance for credit losses - loans | $ | 1,329,037 | $ | 309,931 | $ | 1,019,106 |
Adjustment related to purchased credit-impaired loans(1) | 8,852 | - | - | |||
Total allowance for credit losses - loans | 1,337,889 | 309,931 | 1,019,106 | |||
Allowance for credit losses - unfunded credit commitments | 513,246 | 119,689 | 393,557 | |||
Total impact of CECL Standard adoption | $ | 1,851,135 | $ | 429,620 | $ | 1,412,663 |
(1)This amount represents a gross-up of the balance sheet related to purchased credit-impaired loans resulting from adoption of the CECL Standard on | ||||||
The Company’s results of operations for the three months ended
Positive Impacts:
- An increase in net interest income due primarily to increases in average loan and investment securities balances and higher yields earned on each, an increase in the yields earned on average cash and cash equivalents balances, and a decrease in average interest-bearing deposit balances, which were partially offset by a decrease in average cash and cash equivalents balances, higher rates paid on average interest-bearing deposit balances, an increase in average borrowings balances and higher rates paid, and lower net loan fees earned related to the forgiveness of loans originated and funded under the Paycheck Protection Program (“PPP”) of the
Small Business Administration ; and - A higher net interest margin (tax equivalent basis).
Negative Impacts:
- Recording a higher provision for credit losses due to changes in the assessment of economic factors, and for
March 31, 2023 , updated views on the downside risks to the economic forecast compared toJanuary 1, 2023 , and organic loan growth, which were partially offset by lower net charge-offs and a lower required reserve on unfunded credit commitments; - Reduced operating results from Virginia Partners’ majority owned subsidiary
Johnson Mortgage Company, LLC and lower mortgage division fees at Delmarva; - Recording no gains or operating expenses on other real estate owned, net during the three months ended
March 31, 2023 ; and - Incurring
$1.0 million in merger related expenses during the three months endedMarch 31, 2023 in connection with the Company’s pending merger with LINK, as compared to$396 thousand during the same period of 2022 in connection with the Company’s terminated merger with OceanFirst Financial Corp. (“OceanFirst”).
For the three months ended
The increase in net income attributable to the Company for the three months ended
Interest Income and Expense – Three Months Ended
Net interest income and net interest margin
Net interest income in the first quarter of 2023 increased by
The most significant factors impacting net interest income during the three month period ended
Positive Impacts:
- Increases in average loan balances, primarily due to organic loan growth, and higher loan yields, primarily due to repricing of variable rate loans and higher average yields on new loan originations, which were partially offset by lower net loan fees earned related to the forgiveness of loans originated and funded under the PPP and pay-offs of higher yielding fixed rate loans;
- Increases in average investment securities balances and higher investment securities yields, primarily due to management of the investment securities portfolio in light of the Company’s liquidity needs and higher interest rates over the comparable periods; and
- Higher yields earned on average interest-bearing deposits in other financial institutions and federal funds sold, primarily due to higher interest rates over the comparable periods.
Negative Impacts:
- Decrease in average interest-bearing deposits in other financial institutions and federal funds sold, primarily due to loan growth outpacing deposit growth, deposit outflows due to competitive pressures in the higher interest rate environment and the negative banking industry developments associated with multiple high-profile bank failures during the first quarter of 2023, and higher investment securities balances;
- Decrease in average interest-bearing deposit balances and higher rates paid, primarily due to scheduled maturities of time deposits that were not replaced and deposit outflows due to competitive pressures in the higher interest rate environment and the negative banking industry developments associated with multiple high-profile bank failures during the first quarter of 2023, which were partially offset by organic deposit growth; and
- Increase in average borrowings balances and higher rates paid, primarily due to an increase in the average balance of short-term
Federal Home Loan Bank advances due to the aforementioned decrease in average interest-bearing deposit balances. The increase in average borrowings balances was partially offset by a decrease in the average balance of long-termFederal Home Loan Bank advances resulting from maturities and payoffs of borrowings that were not replaced and scheduled principal curtailments.
Loans
Average loan balances increased by
Investment securities
Average total investment securities balances increased by
Interest-bearing deposits
Average total interest-bearing deposit balances decreased by
Borrowings
Average total borrowings increased by
Provision for Credit Losses
The provision for credit losses in the first quarter of 2023 was
The provision for credit losses during the three months ended
Other Income
Other income in the first quarter of 2023 decreased by
- Service charges on deposit accounts increased by
$25 thousand , or 11.0%, due primarily to increases in overdraft fees; - Mortgage banking income decreased by
$39 thousand , or 13.5%, due primarily to Virginia Partners’ majority owned subsidiaryJohnson Mortgage Company, LLC having a lower volume of loan closings as compared to the same period in 2022; and - Other income decreased by
$24 thousand , or 3.1%, due primarily to decreases in safe deposit box rentals and debit card income, and lower mortgage division fees at Delmarva, which were partially offset by increases in bank owned life insurance and other noninterest income.
Other Expenses
Other expenses in the first quarter of 2023 increased by
- Salaries and employee benefits increased by
$429 thousand , or 7.7%, primarily due to merit increases and higher expenses related to benefit costs, payroll taxes and bonus accruals, which were partially offset by decreases related to staffing changes, a decrease in commissions expense paid due to the decrease in mortgage banking income from Virginia Partners’ majority owned subsidiaryJohnson Mortgage Company, LLC , and a lower FAS 91 related benefit; - Premises and equipment decreased by
$79 thousand , or 5.3%, primarily due to lower expenses related to repairs and maintenance, depreciation, software amortization, purchased equipment and furniture, the cost of which did not qualify for capitalization, and building security; - Amortization of core deposit intangible decreased by
$13 thousand , or 9.7%, primarily due to lower amortization related to the$2.7 million and$1.5 million , respectively, in core deposit intangibles recognized in theVirginia Partners andLiberty Bell Bank acquisitions; - (Gains) and operating expenses on other real estate owned, net decreased by
$7 thousand , or 100.0%, primarily due to no gains on sales or expenses being recorded during the first quarter of 2023, as compared to gains on the sales of two properties and expenses being recorded during the first quarter of 2022; - Merger related expenses increased by
$636 thousand , or 160.7%, primarily due to higher legal fees and other costs associated with the pending merger with LINK during the first quarter of 2023, as compared to the legal fees and other costs in the first quarter of 2022 associated with the merger with OceanFirst, that was subsequently terminated in the fourth quarter of 2022; and - Other expenses increased by
$270 thousand , or 9.6%, primarily due to higher expenses related to professional services, ATMs, legal fees, audit and related professional fees, and other, which were partially offset by lower expenses related toFDIC insurance assessments and telephone and data circuits.
Federal and State Income Taxes
Federal and state income taxes for the three months ended
Balance Sheet
Changes in key balance sheet components as of
- Total assets as of
March 31, 2023 were$1.54 billion , a decrease of$34.9 million , or 2.2%, fromDecember 31, 2022 . The key driver of this change was a decrease in cash and cash equivalents, which was partially offset by an increase in total loans held for investment; - Interest-bearing deposits in other financial institutions as of
March 31, 2023 were$53.2 million , a decrease of$50.7 million , or 48.8%, fromDecember 31, 2022 . Key drivers of this change were loan growth outpacing deposit growth, deposit outflows due to competitive pressures in the higher interest rate environment and the negative banking industry developments associated with multiple high-profile bank failures during the first quarter of 2023, and a decrease in short-term borrowings with theFederal Home Loan Bank ; - Investment securities available for sale, at fair value as of
March 31, 2023 were$132.8 million , a decrease of$855 thousand , or 0.6%, fromDecember 31, 2022 . The key driver of this change was scheduled payments of principal, which was partially offset by a decrease in unrealized losses on the investment securities available for sale portfolio as a result of decreases in market interest rates; - Loans, net of unamortized discounts on acquired loans of
$1.6 million as ofMarch 31, 2023 were$1.25 billion , an increase of$17.8 million , or 1.4%, fromDecember 31, 2022 . The key driver of this change was an increase in organic growth, including growth of approximately$3.5 million in loans related to Virginia Partners’ expansion into theGreater Washington market; - Total deposits as of
March 31, 2023 were$1.31 billion , a decrease of$27.1 million , or 2.0%, fromDecember 31, 2022 . Key drivers of this change were deposit outflows due to competitive pressures in the higher interest rate environment and the negative banking industry developments associated with multiple high-profile bank failures during the first quarter of 2023, partially offset by organic growth in interest bearing demand and time deposits as a result of our continued focus on total relationship banking and Virginia Partners’ expansion into theGreater Washington market; - Total borrowings as of
March 31, 2023 were$71.6 million , a decrease of$13.0 million , or 15.4%, fromDecember 31, 2022 . The key driver of this change was a decrease in short-term borrowings with theFederal Home Loan Bank ; and - Total stockholders’ equity as of
March 31, 2023 was$141.9 million , an increase of$2.6 million , or 1.8%, fromDecember 31, 2022 . Key drivers of this change was the net income attributable to the Company for the three months endedMarch 31, 2023 , a decrease in accumulated other comprehensive (loss), net of tax, the proceeds from stock option exercises, and stock-based compensation expense related to restricted stock awards, which were partially offset by a decrease to retained earnings, net of tax, related to the adoption of the CECL Standard, and cash dividends paid to shareholders.
Changes in key balance sheet components as of
- Total assets as of
March 31, 2023 were$1.54 billion , a decrease of$149.6 million , or 8.9%, fromMarch 31, 2022 . The key driver of this change was a decrease in cash and cash equivalents, which was partially offset by increases in investment securities available for sale, at fair value, and total loans held for investment; - Interest-bearing deposits in other financial institutions as of
March 31, 2023 were$53.2 million , a decrease of$254.8 million , or 82.7%, fromMarch 31, 2022 . Key drivers of this change were an increase in investment securities available for sale, at fair value, loan growth outpacing deposit growth, deposit outflows due to competitive pressures in the higher interest rate environment and the negative banking industry developments associated with multiple high-profile bank failures during the first quarter of 2023, and a decrease in long-term borrowings with theFederal Home Loan Bank , which were partially offset by an increase in short-term borrowings with theFederal Home Loan Bank ; - Investment securities available for sale, at fair value as of
March 31, 2023 were$132.8 million , an increase of$7.7 million , or 6.1%, fromMarch 31, 2022 . Key drivers of this change were management of the investment securities portfolio in light of the Company’s liquidity needs, which was partially offset by an increase in unrealized losses on the investment securities available for sale portfolio as a result of increases in market interest rates and scheduled payments of principal; - Loans, net of unamortized discounts on acquired loans of
$1.6 million as ofMarch 31, 2023 were$1.25 billion , an increase of$97.3 million , or 8.4%, fromMarch 31, 2022 . The key driver of this change was an increase in organic growth, including growth of approximately$54.6 million in loans related to Virginia Partners’ expansion into theGreater Washington market, which was partially offset by forgiveness payments received of approximately$5.8 million under round two of the PPP. As ofMarch 31, 2023 , there were no loans under the PPP that were still outstanding; - Total deposits as of
March 31, 2023 were$1.31 billion , a decrease of$178.9 million , or 12.0%, fromMarch 31, 2022 . Key drivers of this change were scheduled maturities of time deposits that were not replaced, deposit outflows due to competitive pressures in the higher interest rate environment and the negative banking industry developments associated with multiple high-profile bank failures during the first quarter of 2023, partially offset by organic growth as a result of our continued focus on total relationship banking and Virginia Partners’ expansion into theGreater Washington market; - Total borrowings as of
March 31, 2023 were$71.6 million , an increase of$22.6 million , or 46.0%, fromMarch 31, 2022 . The key driver of this change was an increase in short-term borrowings with theFederal Home Loan Bank due to the aforementioned items noted in the analysis of total deposits, which was partially offset by a decrease in long-term borrowings with theFederal Home Loan Bank resulting from maturities and payoffs of borrowings that were not replaced and scheduled principal curtailments, and a decrease in Virginia Partners’ majority owned subsidiaryJohnson Mortgage Company , LLC’s warehouse line of credit with another financial institution; and - Total stockholders’ equity as of
March 31, 2023 was$141.9 million , an increase of$4.6 million , or 3.4%, fromMarch 31, 2022 . Key drivers of this change was the net income attributable to the Company for the periodApril 1, 2022 throughMarch 31, 2023 , the proceeds from stock option exercises, and stock-based compensation expense related to restricted stock awards, which were partially offset by an increase in accumulated other comprehensive (loss), net of tax, a decrease to retained earnings, net of tax, related to the adoption of the CECL Standard, and cash dividends paid to shareholders.
As of
Asset Quality
The asset quality measures depicted below continue to reflect the Company’s efforts to prudently charge-off loans as losses are identified and maintain an appropriate allowance for credit losses.
The following table depicts the net (recovery) charge-off activity for the three months ended
Net (Recovery) Charge-off Activity | Three Months Ended | |||||||
Dollars in Thousands | 2023 | 2022 | ||||||
Net (recoveries) charge-offs | $ | (23 | ) | $ | 155 | |||
Net (recoveries) charge-offs /Average loans* | -0.01 | % | 0.06 | % | ||||
* Annualized for the three months ended | ||||||||
The following table depicts the level of the allowance for credit losses as of
Allowance for Credit Losses | ||||||||||||
Dollars in Thousands | ||||||||||||
Allowance for credit losses | $ | 16,096 | $ | 14,315 | $ | 14,565 | ||||||
Allowance for credit losses/Period end loans | 1.29 | % | 1.16 | % | 1.26 | % | ||||||
Allowance for credit losses/Nonaccrual loans | 752.85 | % | 664.58 | % | 237.06 | % | ||||||
Allowance for credit losses/Nonperforming loans | 743.12 | % | 650.98 | % | 237.06 | % | ||||||
The following table depicts the unamortized discounts on acquired loans related to the acquisitions of
Unamortized Discounts on Acquired Loans | ||||||||||||
Dollars in Thousands | ||||||||||||
Unamortized discounts on acquired loans | $ | 1,615 | $ | 1,728 | $ | 2,008 | ||||||
The following table depicts the level of nonperforming assets as of
Nonperforming Assets | ||||||||||||
Dollars in Thousands | ||||||||||||
Nonaccrual loans | $ | 2,138 | $ | 2,154 | $ | 6,144 | ||||||
Loans past due 90 days and accruing interest | $ | 28 | $ | 45 | $ | - | ||||||
Total nonperforming loans | $ | 2,166 | $ | 2,199 | $ | 6,144 | ||||||
Other real estate owned, net | $ | - | $ | - | $ | - | ||||||
Total nonperforming assets | $ | 2,166 | $ | 2,199 | $ | 6,144 | ||||||
Nonperforming assets/Total assets | 0.14 | % | 0.14 | % | 0.36 | % | ||||||
Nonperforming assets/Total loans and other real estate owned, net | 0.17 | % | 0.18 | % | 0.53 | % | ||||||
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Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include, without limitation, projections, predictions, expectations, or beliefs about future events or results that are not statements of historical fact. Statements in this press release which express “belief,” “intention,” “expectation,” “potential” and similar expressions, or which use the words “believe,” “expect,” “anticipate,” “estimate,” “plan,” “may,” “will,” “intend,” “should,” “could,” or similar expressions, identify forward-looking statements. These forward-looking statements are based on the beliefs of the Company’s management, as well as assumptions made by, and information currently available to, the Company’s management. These statements are inherently uncertain, and there can be no assurance that the underlying assumptions will prove to be accurate. Actual results could differ materially from those anticipated or implied by such statements. Forward-looking statements in this release may include, without limitation, statements related to the completion and benefits of the merger with LINK, statements related to the termination of the merger with OceanFirst, statements in Mr. Breda’s quote regarding expected future financial performance, potential effects of the COVID-19 pandemic, strategic business initiatives including growth in the
- the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement between the Company and LINK;
- the outcome of any legal proceedings that may be instituted against the Company or LINK;
- the possibility that the proposed transaction will not close when expected or at all because required regulatory, shareholder or other approvals are not received or other conditions to the closing are not satisfied on a timely basis or at all, or are obtained subject to conditions that are not anticipated (and the risk that required regulatory approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction);
- the ability of the Company and LINK to meet expectations regarding the timing, completion and accounting and tax treatments of the proposed transaction;
- the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of the common stock of either or both parties to the proposed transaction;
- the possibility that the anticipated benefits of the proposed transaction will not be realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where the Company and LINK do business;
- certain restrictions during the pendency of the proposed transaction that may impact the parties’ ability to pursue certain business opportunities or strategic transactions;
- the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events;
- diversion of management’s attention from ongoing business operations and opportunities;
- the possibility that the parties may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes or at all and to successfully integrate the Company’s operations and those of LINK, which may be more difficult, time-consuming or costly than expected;
- revenues following the proposed transaction may be lower than expected;
- the Company’s and LINK’s success in executing their respective business plans and strategies and managing the risks involved in the foregoing;
- the dilution caused by LINK’s issuance of additional shares of its capital stock in connection with the proposed transaction;
- effects of the announcement, pendency or completion of the proposed transaction on the ability of the Company and LINK to retain customers and retain and hire key personnel and maintain relationships with their suppliers, and on their operating results and businesses generally;
- potential adverse consequences related to the termination of the merger agreement with OceanFirst;
- changes in interest rates, such as volatility in yields on
U.S. Treasury bonds and increases or volatility in mortgage rates, and the impacts on macroeconomic conditions, customer and client spending and saving behaviors, the Company’s funding costs and the Company’s loan and investment securities portfolios; - monetary and fiscal policies of the
U.S. Government , including policies of theU.S. Treasury and theFederal Reserve , and the effect of these policies on interest rates and business in our markets; - general business conditions, as well as conditions within the financial markets, including the impact thereon of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts, geopolitical conflicts (such as the military conflict between
Russia andUkraine ) or public health events (such as the COVID-19 pandemic), and of governmental and societal responses thereto; - general economic conditions, in
the United States generally and particularly in the markets in which the Company operates and which its loans are concentrated, including the effects of declines in real estate values, increases in unemployment levels and inflation, recession and slowdowns in economic growth; - changes in the value of securities held in the Company’s investment portfolios;
- changes in the quality or composition of the loan portfolios and the value of the collateral securing those loans;
- changes in the level of net charge-offs on loans and the adequacy of our allowance for credit losses;
- demand for loan products;
- deposit flows;
- the strength of the Company’s counterparties;
- competition from both banks and non-banks;
- demand for financial services in the Company’s market areas;
- reliance on third parties for key services;
- changes in the commercial and residential real estate markets;
- cyber threats, attacks or events;
- expansion of Delmarva’s and Virginia Partners’ product offerings;
- changes in accounting principles, standards, rules and interpretations, and elections by the Company thereunder, and the related impact on the Company’s financial statements, including implementation of the CECL Standard;
- potential claims, damages, and fines related to litigation or government actions;
- the effects of the COVID-19 pandemic, the severity and duration of the pandemic, the uncertainty regarding new variants of COVID-19 that may emerge, the distribution and efficacy of vaccines, and the heightened impact it has on many of the risks described herein;
- any indirect exposure related to the recent bank closings and their impact on the broader market through other customers, suppliers and partners or that the conditions which resulted in the liquidity concerns with the closed banks may also adversely impact, directly or indirectly, other financial institutions and market participants with which the Company has commercial or deposit relationships with;
- legislative or regulatory changes and requirements;
- the discontinuation of London Interbank Offered Rate (“LIBOR”) and its impact on the financial markets, and the Company’s ability to manage operational, legal and compliance risks related to the discontinuation of LIBOR and implementation of one or more alternative reference rates; and
- other factors, many of which are beyond the control of the Company.
These risks and uncertainties should be considered in evaluating the forward-looking statements contained herein, and readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this release. For additional information on risk factors that could affect the forward-looking statements contained herein, see the Company’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other reports filed with the
CONSOLIDATED BALANCE SHEETS | |||||||||
2023 | 2022 | 2022 | |||||||
(Unaudited) | (Unaudited) | * | |||||||
ASSETS | |||||||||
Cash and due from banks | $ | 15,146,908 | $ | 13,915,637 | $ | 14,677,774 | |||
Interest bearing deposits in other financial institutions | 53,172,660 | 308,016,402 | 103,921,732 | ||||||
Federal funds sold | 23,825,109 | 23,982,322 | 22,989,879 | ||||||
Cash and cash equivalents | 92,144,677 | 345,914,361 | 141,589,385 | ||||||
Investment securities available for sale, at fair value | 132,802,115 | 125,128,610 | 133,656,642 | ||||||
Loans held for sale | 841,246 | 1,341,719 | 1,314,125 | ||||||
Loans, less allowance for credit losses of | |||||||||
1,234,584,063 | 1,138,798,890 | 1,218,551,209 | |||||||
Accrued interest receivable | 4,495,877 | 4,112,985 | 4,566,487 | ||||||
Premises and equipment, less accumulated depreciation | 14,623,677 | 15,970,144 | 14,857,298 | ||||||
Restricted stock | 5,991,050 | 4,934,656 | 6,512,350 | ||||||
Operating lease right-of-use assets | 5,036,512 | 5,770,304 | 5,064,866 | ||||||
Finance lease right-of-use assets | 1,515,930 | 1,652,833 | 1,550,156 | ||||||
Other investments | 5,347,718 | 4,983,459 | 4,888,118 | ||||||
Bank owned life insurance | 18,822,140 | 18,365,558 | 18,706,260 | ||||||
Core deposit intangible, net | 1,418,645 | 1,925,529 | 1,540,438 | ||||||
9,581,668 | 9,581,668 | 9,581,668 | |||||||
Other assets | 12,507,711 | 10,833,335 | 12,233,494 | ||||||
Total assets | $ | 1,539,713,029 | $ | 1,689,314,051 | $ | 1,574,612,496 | |||
LIABILITIES | |||||||||
Deposits: | |||||||||
Non-interest bearing demand | $ | 498,655,305 | $ | 544,688,000 | $ | 528,769,800 | |||
Interest bearing demand | 129,402,679 | 149,186,558 | 121,786,774 | ||||||
Savings and money market | 382,881,223 | 441,372,634 | 431,538,080 | ||||||
Time | 301,602,443 | 356,206,716 | 257,510,218 | ||||||
1,312,541,650 | 1,491,453,908 | 1,339,604,872 | |||||||
Accrued interest payable on deposits | 705,558 | 267,372 | 267,205 | ||||||
Short-term borrowings with the | 29,000,000 | - | 42,000,000 | ||||||
Long-term borrowings with the | 19,800,000 | 26,148,571 | 19,800,000 | ||||||
Subordinated notes payable, net | 22,226,214 | 22,179,887 | 22,214,632 | ||||||
Other borrowings | 607,748 | 750,133 | 613,423 | ||||||
Operating lease liabilities | 5,438,892 | 6,166,269 | 5,464,727 | ||||||
Finance lease liabilities | 1,975,238 | 2,095,747 | 2,005,685 | ||||||
Other liabilities | 5,520,159 | 2,988,933 | 3,312,977 | ||||||
Total liabilities | 1,397,815,459 | 1,552,050,820 | 1,435,283,521 | ||||||
COMMITMENTS & CONTINGENCIES | |||||||||
STOCKHOLDERS' EQUITY | |||||||||
Common stock, par value | |||||||||
as of | |||||||||
including 18,669 nonvested shares as of | |||||||||
2022 and 18,669 nonvested shares as of | 179,669 | 179,337 | 179,551 | ||||||
Surplus | 88,761,917 | 88,528,646 | 88,669,334 | ||||||
Retained earnings | 64,051,701 | 52,964,556 | 62,854,235 | ||||||
Noncontrolling interest in consolidated subsidiaries | 676,429 | 1,118,457 | 707,138 | ||||||
Accumulated other comprehensive (loss), net of tax | (11,772,146 | ) | (5,527,765 | ) | (13,081,283 | ) | |||
Total stockholders' equity | 141,897,570 | 137,263,231 | 139,328,975 | ||||||
Total liabilities and stockholders' equity | $ | 1,539,713,029 | $ | 1,689,314,051 | $ | 1,574,612,496 | |||
* Derived from audited consolidated financial statements. | |||||||||
The amounts presented in the Consolidated Balance Sheets as of | |||||||||
which, in management's opinion, are necessary for fair presentation. |
CONSOLIDATED STATEMENTS OF INCOME | |||||
(Unaudited) | |||||
Three Months Ended | |||||
2023 | 2022 | ||||
INTEREST INCOME ON: | |||||
Loans, including fees | $ | 16,150,954 | $ | 12,894,469 | |
Investment securities: | |||||
Taxable | 687,880 | 396,136 | |||
Tax-exempt | 185,247 | 183,784 | |||
Federal funds sold | 264,100 | 17,074 | |||
Other interest income | 703,944 | 162,191 | |||
17,992,125 | 13,653,654 | ||||
INTEREST EXPENSE ON: | |||||
Deposits | 1,964,707 | 1,243,230 | |||
Borrowings | 858,391 | 505,554 | |||
2,823,098 | 1,748,784 | ||||
NET INTEREST INCOME | 15,169,027 | 11,904,870 | |||
Provision for credit losses | 300,400 | 65,000 | |||
NET INTEREST INCOME AFTER PROVISION | |||||
FOR CREDIT LOSSES | 14,868,627 | 11,839,870 | |||
OTHER INCOME: | |||||
Service charges on deposit accounts | 247,724 | 223,093 | |||
Mortgage banking income | 252,014 | 291,257 | |||
Other income | 753,510 | 777,917 | |||
1,253,248 | 1,292,267 | ||||
OTHER EXPENSES: | |||||
Salaries and employee benefits | 6,004,235 | 5,575,256 | |||
Premises and equipment | 1,401,809 | 1,480,538 | |||
Amortization of core deposit intangible | 121,793 | 134,934 | |||
(Gains) and operating expenses on other real estate owned, net | - | (7,325 | ) | ||
Merger related expenses | 1,032,105 | 395,895 | |||
Other expenses | 3,077,187 | 2,807,225 | |||
11,637,129 | 10,386,523 | ||||
INCOME BEFORE TAXES ON INCOME | 4,484,746 | 2,745,614 | |||
Federal and state income taxes | 1,186,505 | 696,335 | |||
NET INCOME | $ | 3,298,241 | $ | 2,049,279 | |
Net loss attributable to noncontrolling interest | $ | 31,311 | $ | 59,481 | |
Net income attributable to | $ | 3,329,552 | $ | 2,108,760 | |
Earnings per common share: | |||||
Basic | $ | 0.185 | $ | 0.117 | |
Diluted | $ | 0.185 | $ | 0.117 | |
The amounts presented in these Consolidated Statements of Income for the three months ended | |||||
but include all adjustments which, in management's opinion, are necessary for fair presentation. |
Source:
2023 GlobeNewswire, Inc., source