Overall, results were very strong and the Bank also provided for
Highlights for the Quarter:
- Return on average assets was 2.25%
- Return on beginning equity of 22.66%
- Net interest margin was 4.39%
- Total deposits increased
$94.3 million or 6.7% annually for the quarter - Efficiency ratio was 25.0%
- Quarter-end cash and equivalents continues to be strong at
$1.02 billion or 18.0% of total deposits
Li Yu, Chairman and CEO, commented, “We are pleased to report another quarter of record profit. Earnings per diluted share for the third quarter was
“For the quarter, loans practically stayed even and deposits grew modestly, which is the reflection of the cautiousness of both the Bank and its clients under the current environment. The margin decreased moderately from 4.58% in Q2 to 4.39% for Q3, largely because interest cost increases have slowed down.
“Credit quality remained relatively stable in the quarter. As of
“Our operating expenses remain under control and were within our expectations. The Bank’s efficiency ratio for the quarter was 25.0% Since the second quarter of this year, we have been continuously buying back our own stock due to our strong tangible capital position and the market price of the stock. Through
“Based upon public information,
Results of Operations
Net Interest Income and Net Interest Margin. Net interest income before provision for credit losses was
Noninterest Income. For the third quarter of 2023, noninterest income was
Noninterest Expense. Total noninterest expense was
Income Taxes. The Bank recorded a provision for income taxes of
Balance Sheet Summary
Total gross loans at
Uninsured Deposits
As of
Balance Sheet Fair Market Values from
With so much focus recently on ASC Topic 825, Financial Instruments, formerly known as FASB 107, we felt it would be beneficial for shareholders to view the Bank’s disclosure in its recently filed Quarterly Report on Form 10-Q for
Fair Value Measurement Using | Carrying Amount | Estimated Fair Value | |||||
(Dollars in thousands) | |||||||
Assets: | |||||||
Cash and cash equivalents | Level 1 | $ | 1,049,745 | $ | 1,049,745 | ||
Securities held-to-maturity | Level 2 | 21,818 | 19,865 | ||||
Securities available-for-sale | Level 2/3 | 352,548 | 352,548 | ||||
Loans receivable, net | Level 3 | 5,036,618 | 5,102,339 | ||||
Customers' liability on acceptances | Level 2 | 448 | 448 | ||||
Accrued interest receivable | Level 2/3 | 28,184 | 28,184 | ||||
Level 2 | 15,000 | N/A | |||||
Liabilities: | |||||||
Demand deposits and savings: | |||||||
Noninterest-bearing | Level 2 | $ | 870,282 | $ | 870,282 | ||
Interest-bearing | Level 2 | 2,037,387 | 2,037,387 | ||||
Time deposits | Level 2 | 2,681,322 | 2,665,195 | ||||
Subordinated debt issuance | Level 2 | 148,114 | 169,134 | ||||
Acceptances Outstanding | Level 2 | 448 | 448 | ||||
Accrued interest payable | Level 2 | 6,998 | 6,998 | ||||
Liquidity
As of
Asset Quality
As of
Office
As a result of the pandemic and working from home, office occupancy has suffered and there has been a corresponding decline in the value of office properties, especially in city centers. As of
Medical Office | $ | 14,184 | |
Mixed Use (Office & Retail) | 170,590 | ||
Pure Office | 177,322 | ||
Reposition for Multi-Family | 105,731 | ||
Total | $ | 467,827 |
Substantially all of the office building loans are secured by properties located in more suburban areas. There are only
Allowance for Credit Losses
The provision for credit losses for the third quarter of 2023 was
Capitalization
As of
Conference Call and Webcast
A conference call with simultaneous webcast to discuss Preferred Bank’s second quarter 2023 financial results will be held tomorrow,
About
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the Bank’s future financial and operating results, the Bank's plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of the Bank’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: changes in economic conditions; changes in the
Financial Tables to Follow
Condensed Consolidated Statements of Operations | ||||||||||||||
(unaudited) | ||||||||||||||
(in thousands, except for net income per share and shares) | ||||||||||||||
For the Quarter Ended | ||||||||||||||
2023 | 2023 | 2022 | ||||||||||||
Interest income: | ||||||||||||||
Loans, including fees | $ | 106,695 | $ | 102,220 | $ | 71,192 | ||||||||
Investment securities | 18,556 | 15,919 | 7,111 | |||||||||||
Fed funds sold | 278 | 272 | 117 | |||||||||||
Total interest income | 125,529 | 118,411 | 78,420 | |||||||||||
Interest expense: | ||||||||||||||
Interest-bearing demand | 20,257 | 16,406 | 6,436 | |||||||||||
Savings | 67 | 47 | 19 | |||||||||||
Time certificates | 29,369 | 25,436 | 3,850 | |||||||||||
FHLB borrowings | 1,557 | 1,888 | - | |||||||||||
Subordinated debt | 1,325 | 1,325 | 1,325 | |||||||||||
Total interest expense | 52,575 | 45,102 | 11,630 | |||||||||||
Net interest income | 72,954 | 73,309 | 66,790 | |||||||||||
Provision for credit losses | 3,500 | 2,500 | 2,700 | |||||||||||
Net interest income after provision for | ||||||||||||||
credit losses | 69,454 | 70,809 | 64,090 | |||||||||||
Noninterest income: | ||||||||||||||
Fees & service charges on deposit accounts | 939 | 844 | 703 | |||||||||||
Letters of credit fee income | 1,412 | 1,576 | 956 | |||||||||||
BOLI income | 103 | 103 | 100 | |||||||||||
Net gain on sale of loans | 21 | 186 | - | |||||||||||
Other income | 497 | 392 | 428 | |||||||||||
Total noninterest income | 2,972 | 3,101 | 2,187 | |||||||||||
Noninterest expense: | ||||||||||||||
Salary and employee benefits | 13,008 | 12,520 | 12,326 | |||||||||||
Net occupancy expense | 1,563 | 1,476 | 1,452 | |||||||||||
Business development and promotion expense | 193 | 200 | 214 | |||||||||||
Professional services | 1,423 | 1,343 | 1,161 | |||||||||||
Office supplies and equipment expense | 395 | 398 | 456 | |||||||||||
Loss on sale of OREO, valuation allowance and related expense | 140 | 2,838 | 314 | |||||||||||
Other | 2,287 | 2,077 | 1,477 | |||||||||||
Total noninterest expense | 19,009 | 20,852 | 17,400 | |||||||||||
Income before provision for income taxes | 53,417 | 53,058 | 48,877 | |||||||||||
Income tax expense | 15,225 | 15,122 | 13,688 | |||||||||||
Net income | $ | 38,192 | $ | 37,936 | $ | 35,189 | ||||||||
Income per share available to common shareholders | ||||||||||||||
Basic | $ | 2.74 | $ | 2.63 | $ | 2.44 | ||||||||
Diluted | $ | 2.71 | $ | 2.61 | $ | 2.40 | ||||||||
Weighted-average common shares outstanding | ||||||||||||||
Basic | 13,925,994 | 14,419,959 | 14,792,298 | |||||||||||
Diluted | 14,105,915 | 14,560,693 | 15,006,801 | |||||||||||
Cash dividends per common share | $ | 0.55 | $ | 0.55 | $ | 0.43 | ||||||||
Condensed Consolidated Statements of Operations | ||||||||||||||
(unaudited) | ||||||||||||||
(in thousands, except for net income per share and shares) | ||||||||||||||
For the Nine Months Ended | ||||||||||||||
Change | ||||||||||||||
2023 | 2022 | % | ||||||||||||
Interest income: | ||||||||||||||
Loans, including fees | $ | 304,796 | $ | 181,852 | 67.6 | % | ||||||||
Investment securities | 47,454 | 13,969 | 239.7 | % | ||||||||||
Fed funds sold | 774 | 182 | 325.5 | % | ||||||||||
Total interest income | 353,024 | 196,003 | 80.1 | % | ||||||||||
Interest expense: | ||||||||||||||
Interest-bearing demand | 53,701 | 10,315 | 420.6 | % | ||||||||||
Savings | 153 | 58 | 163.9 | % | ||||||||||
Time certificates | 71,399 | 8,409 | 749.1 | % | ||||||||||
FHLB borrowings | 3,819 | - | 100.0 | % | ||||||||||
Subordinated debt | 3,975 | 3,975 | 0.0 | % | ||||||||||
Total interest expense | 133,046 | 22,757 | 484.6 | % | ||||||||||
Net interest income | 219,978 | 173,246 | 27.0 | % | ||||||||||
Provision for credit losses | 6,500 | 5,350 | 21.5 | % | ||||||||||
Net interest income after provision for credit losses | 213,478 | 167,896 | 27.1 | % | ||||||||||
Noninterest income: | ||||||||||||||
Fees & service charges on deposit accounts | 2,477 | 2,097 | 18.1 | % | ||||||||||
Letters of credit fee income | 4,312 | 3,218 | 34.0 | % | ||||||||||
BOLI income | 307 | 299 | 2.7 | % | ||||||||||
Net loss on called and sale of investment securities | (4,117 | ) | - | -100.0 | % | |||||||||
Net gain on sale of loans | 547 | - | 100.0 | % | ||||||||||
Other income | 1,481 | 1,440 | 2.9 | % | ||||||||||
Total noninterest income | 5,007 | 7,054 | -29.0 | % | ||||||||||
Noninterest expense: | ||||||||||||||
Salary and employee benefits | 39,256 | 35,654 | 10.1 | % | ||||||||||
Net occupancy expense | 4,513 | 4,315 | 4.6 | % | ||||||||||
Business development and promotion expense | 498 | 491 | 1.4 | % | ||||||||||
Professional services | 3,915 | 3,864 | 1.3 | % | ||||||||||
Office supplies and equipment expense | 1,197 | 1,404 | -14.7 | % | ||||||||||
Loss on sale of OREO, valuation allowance and related expense | 3,050 | 715 | 326.6 | % | ||||||||||
Other | 6,332 | 4,254 | 48.9 | % | ||||||||||
Total noninterest expense | 58,761 | 50,697 | 15.9 | % | ||||||||||
Income before provision for income taxes | 159,724 | 124,253 | 28.5 | % | ||||||||||
Income tax expense | 45,523 | 34,968 | 30.2 | % | ||||||||||
Net income | $ | 114,201 | $ | 89,285 | 27.9 | % | ||||||||
Dividend and earnings allocated to participating securities | $ | - | $ | (2 | ) | 100.0 | % | |||||||
Net income available to common shareholders | $ | 114,201 | $ | 89,283 | 27.9 | % | ||||||||
Income per share available to common shareholders | ||||||||||||||
Basic | $ | 8.01 | $ | 6.09 | 31.5 | % | ||||||||
Diluted | $ | 7.92 | $ | 6.00 | 31.9 | % | ||||||||
Weighted-average common shares outstanding | ||||||||||||||
Basic | 14,257,005 | 14,653,982 | -2.7 | % | ||||||||||
Diluted | 14,418,939 | 14,873,933 | -3.1 | % | ||||||||||
Dividends per share | $ | 1.65 | $ | 1.29 | 27.9 | % | ||||||||
Condensed Consolidated Statements of Financial Condition | |||||||||||
(unaudited) | |||||||||||
(in thousands) | |||||||||||
2023 | 2022 | ||||||||||
(Unaudited) | (Audited) | ||||||||||
Assets | |||||||||||
Cash and due from banks | $ | 998,508 | $ | 747,526 | |||||||
Fed funds sold | 22,600 | 20,000 | |||||||||
Cash and cash equivalents | 1,021,108 | 767,526 | |||||||||
Securities held-to-maturity, at amortized cost | 21,474 | 22,459 | |||||||||
Securities available-for-sale, at fair value | 335,608 | 428,295 | |||||||||
Loans | 5,128,242 | 5,074,793 | |||||||||
Less allowance for credit losses | (74,849 | ) | (68,472 | ) | |||||||
Less amortized deferred loan fees, net | (10,240 | ) | (9,939 | ) | |||||||
Loans, net | 5,043,153 | 4,996,382 | |||||||||
Other real estate owned and repossessed assets | 16,716 | 21,990 | |||||||||
Customers' liability on acceptances | 103 | 1,731 | |||||||||
Bank furniture and fixtures, net | 8,748 | 8,999 | |||||||||
Bank-owned life insurance | 10,563 | 10,357 | |||||||||
Accrued interest receivable | 33,627 | 23,593 | |||||||||
Investment in affordable housing partnerships | 54,679 | 61,173 | |||||||||
15,000 | 15,000 | ||||||||||
Deferred tax assets | 47,311 | 43,218 | |||||||||
Operating lease right-of-use assets | 20,440 | 21,718 | |||||||||
Other assets | 4,000 | 2,917 | |||||||||
Total assets | $ | 6,632,530 | $ | 6,425,358 | |||||||
Liabilities and Shareholders' Equity | |||||||||||
Deposits: | |||||||||||
Noninterest bearing demand deposits | $ | 838,300 | $ | 1,192,091 | |||||||
Interest bearing deposits: | 2,091,384 | 2,295,212 | |||||||||
Savings | 30,427 | 39,527 | |||||||||
Time certificates of | 1,283,461 | 1,138,727 | |||||||||
Other time certificates | 1,439,699 | 891,440 | |||||||||
Total deposits | 5,683,271 | 5,556,997 | |||||||||
Acceptances outstanding | 103 | 1,731 | |||||||||
Subordinated debt issuance, net | 148,173 | 147,995 | |||||||||
Commitments to fund investment in affordable housing partnerships | 20,824 | 27,490 | |||||||||
Operating lease liabilities | 18,438 | 20,949 | |||||||||
Accrued interest payable | 12,506 | 2,608 | |||||||||
Other liabilities | 78,707 | 37,162 | |||||||||
Total liabilities | 5,962,022 | 5,794,932 | |||||||||
Shareholders' equity | 670,508 | 630,426 | |||||||||
Total liabilities and shareholders' equity | $ | 6,632,530 | $ | 6,425,358 | |||||||
Book value per common share | $ | 48.75 | $ | 43.91 | |||||||
Number of common shares outstanding | 13,753,246 | 14,358,145 |
Selected Consolidated Financial Information | ||||||||||||||||||
(unaudited) | ||||||||||||||||||
(in thousands, except for ratios) | ||||||||||||||||||
For the Quarter Ended | ||||||||||||||||||
2023 | 2023 | 2023 | 2022 | 2022 | ||||||||||||||
Unaudited historical quarterly operations data: | ||||||||||||||||||
Interest income | $ | 125,529 | $ | 118,411 | $ | 109,084 | $ | 98,379 | $ | 78,420 | ||||||||
Interest expense | 52,575 | 45,102 | 35,369 | 24,267 | 11,630 | |||||||||||||
Interest income before provision for credit losses | 72,954 | 73,309 | 73,715 | 74,112 | 66,790 | |||||||||||||
Provision for credit losses | 3,500 | 2,500 | 500 | 2,000 | 2,700 | |||||||||||||
Noninterest income | 2,972 | 3,101 | (1,066 | ) | 2,808 | 2,187 | ||||||||||||
Noninterest expense | 19,009 | 20,852 | 18,899 | 19,976 | 17,400 | |||||||||||||
Income tax expense | 15,225 | 15,122 | 15,176 | 15,384 | 13,688 | |||||||||||||
Net income | $ | 38,192 | $ | 37,936 | $ | 38,074 | $ | 39,560 | $ | 35,189 | ||||||||
Earnings per share | ||||||||||||||||||
Basic | $ | 2.74 | $ | 2.63 | $ | 2.64 | $ | 2.76 | $ | 2.44 | ||||||||
Diluted | $ | 2.71 | $ | 2.61 | $ | 2.61 | $ | 2.71 | $ | 2.40 | ||||||||
Ratios for the period: | ||||||||||||||||||
Return on average assets | 2.25 | % | 2.32 | % | 2.41 | % | 2.48 | % | 2.25 | % | ||||||||
Return on beginning equity | 22.66 | % | 23.18 | % | 24.49 | % | 26.58 | % | 23.60 | % | ||||||||
Net interest margin (Fully-taxable equivalent) | 4.39 | % | 4.58 | % | 4.77 | % | 4.75 | % | 4.37 | % | ||||||||
Noninterest expense to average assets | 1.12 | % | 1.28 | % | 1.20 | % | 1.25 | % | 1.11 | % | ||||||||
Efficiency ratio | 25.04 | % | 27.29 | % | 26.01 | % | 25.97 | % | 25.23 | % | ||||||||
Net charge-offs (recoveries) to average loans (annualized) | 0.01 | % | -0.00 | % | 0.00 | % | 0.00 | % | -0.19 | % | ||||||||
Ratios as of period end: | ||||||||||||||||||
Tier 1 leverage capital ratio | 10.46 | % | 10.61 | % | 10.63 | % | 10.30 | % | 9.95 | % | ||||||||
Common equity tier 1 risk-based capital ratio | 11.63 | % | 11.51 | % | 11.30 | % | 10.81 | % | 10.46 | % | ||||||||
Tier 1 risk-based capital ratio | 11.63 | % | 11.51 | % | 11.30 | % | 10.81 | % | 10.46 | % | ||||||||
Total risk-based capital ratio | 15.32 | % | 15.14 | % | 14.91 | % | 14.39 | % | 14.09 | % | ||||||||
Allowances for credit losses to loans at end of period | 1.46 | % | 1.40 | % | 1.36 | % | 1.35 | % | 1.33 | % | ||||||||
Allowance for credit losses to non-performing loans | 3.86x | 13.86x | 254.56x | 12.49x | 10.75x | |||||||||||||
Average balances: | ||||||||||||||||||
Total securities | $ | 368,968 | $ | 397,905 | $ | 442,852 | $ | 434,830 | $ | 410,649 | ||||||||
Total loans | 5,086,241 | 5,044,004 | 5,012,862 | 4,981,561 | 4,908,870 | |||||||||||||
Total earning assets | 6,597,557 | 6,432,950 | 6,276,630 | 6,193,330 | 6,076,616 | |||||||||||||
Total assets | 6,719,859 | 6,558,651 | 6,400,849 | 6,328,017 | 6,215,184 | |||||||||||||
Total time certificate of deposits | 2,680,854 | 2,617,872 | 2,209,370 | 1,872,239 | 1,749,257 | |||||||||||||
Total interest bearing deposits | 4,800,227 | 4,549,519 | 4,451,299 | 4,287,287 | 3,973,105 | |||||||||||||
Total deposits | 5,654,350 | 5,481,457 | 5,479,945 | 5,468,562 | 5,373,252 | |||||||||||||
Total interest bearing liabilities | 5,069,014 | 4,847,596 | 4,630,982 | 4,435,245 | 4,121,005 | |||||||||||||
Total equity | 678,020 | 677,306 | 650,963 | 613,729 | 598,188 | |||||||||||||
Selected Consolidated Financial Information | |||||||||||
(unaudited) | |||||||||||
(in thousands, except for ratios) | |||||||||||
For the Nine Months Ended | |||||||||||
2023 | 2022 | ||||||||||
Interest income | $ | 353,024 | $ | 196,003 | |||||||
Interest expense | 133,046 | 22,757 | |||||||||
Interest income before provision for credit losses | 219,978 | 173,246 | |||||||||
Provision for credit losses | 6,500 | 5,350 | |||||||||
Noninterest income | 5,007 | 7,054 | |||||||||
Noninterest expense | 58,761 | 50,697 | |||||||||
Income tax expense | 45,523 | 34,968 | |||||||||
Net income | $ | 114,201 | $ | 89,285 | |||||||
Earnings per share | |||||||||||
Basic | $ | 8.01 | $ | 6.09 | |||||||
Diluted | $ | 7.92 | $ | 6.00 | |||||||
Ratios for the period: | |||||||||||
Return on average assets | 2.33 | % | 1.95 | % | |||||||
Return on beginning equity | 24.22 | % | 20.35 | % | |||||||
Net interest margin (Fully-taxable equivalent) | 4.58 | % | 3.86 | % | |||||||
Noninterest expense to average assets | 1.20 | % | 1.11 | % | |||||||
Efficiency ratio | 26.12 | % | 28.12 | % | |||||||
Net charge-off (recoveries) to average loans | 0.00 | % | -0.03 | % | |||||||
Average balances: | |||||||||||
Total securities | $ | 402,971 | $ | 432,085 | |||||||
Total loans | 5,047,971 | 4,686,424 | |||||||||
Total earning assets | 6,436,889 | 6,008,091 | |||||||||
Total assets | 6,560,955 | 6,131,640 | |||||||||
Total time certificate of deposits | 2,504,426 | 1,809,492 | |||||||||
Total interest bearing deposits | 4,602,039 | 3,967,963 | |||||||||
Total deposits | 5,539,223 | 5,297,387 | |||||||||
Total interest bearing liabilities | 4,851,214 | 4,115,805 | |||||||||
Total equity | 668,862 | 600,558 | |||||||||
Selected Consolidated Financial Information | |||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
(in thousands, except for ratios) | |||||||||||||||||||||||
As of | |||||||||||||||||||||||
2023 | 2023 | 2023 | 2022 | 2022 | |||||||||||||||||||
Unaudited quarterly statement of financial position data: | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1,021,108 | $ | 1,049,745 | $ | 885,691 | $ | 767,526 | $ | 749,484 | |||||||||||||
Securities held-to-maturity, at amortized cost | 21,474 | 21,818 | 22,155 | 22,459 | 12,442 | ||||||||||||||||||
Securities available-for-sale, at fair value | 335,608 | 352,548 | 367,492 | 428,295 | 377,534 | ||||||||||||||||||
Loans: | |||||||||||||||||||||||
Real estate – Mortgage: | |||||||||||||||||||||||
Real estate—Residential | $ | 663,021 | $ | 631,795 | $ | 612,907 | $ | 609,292 | $ | 587,812 | |||||||||||||
Real estate—Commercial | 2,688,148 | 2,744,074 | 2,813,681 | 2,730,726 | 2,693,852 | ||||||||||||||||||
Total Real Estate – Mortgage | 3,351,169 | 3,375,879 | 3,426,588 | 3,340,018 | 3,281,664 | ||||||||||||||||||
Real estate – Construction: | |||||||||||||||||||||||
226,482 | 186,239 | 175,286 | 193,027 | 179,955 | |||||||||||||||||||
164,666 | 153,418 | 142,319 | 204,478 | 188,083 | |||||||||||||||||||
Total real estate construction loans | 391,148 | 339,657 | 317,605 | 397,505 | 368,038 | ||||||||||||||||||
Commercial and industrial | 1,377,675 | 1,388,865 | 1,299,325 | 1,320,830 | 1,330,028 | ||||||||||||||||||
SBA | 2,424 | 4,427 | 7,306 | 11,339 | 8,067 | ||||||||||||||||||
Trade finance | 5,541 | 9,348 | 6,885 | 4,521 | 22,634 | ||||||||||||||||||
Consumer and others | 285 | 345 | 19 | 580 | 115 | ||||||||||||||||||
Gross loans | 5,128,242 | 5,118,511 | 5,057,728 | 5,074,793 | 5,010,546 | ||||||||||||||||||
Allowance for credit losses on loans | (74,849 | ) | (71,429 | ) | (68,929 | ) | (68,472 | ) | (66,472 | ) | |||||||||||||
Net deferred loan fees | (10,240 | ) | (10,464 | ) | (10,286 | ) | (9,939 | ) | (9,695 | ) | |||||||||||||
Net loans, excluding loans held for sale | $ | 5,043,153 | $ | 5,036,618 | $ | 4,978,513 | $ | 4,996,382 | $ | 4,934,379 | |||||||||||||
Loans held for sale | $ | - | $ | 176 | $ | - | $ | - | $ | - | |||||||||||||
Net loans | $ | 5,043,153 | $ | 5,036,794 | $ | 4,978,513 | $ | 4,996,382 | $ | 4,934,379 | |||||||||||||
Other real estate owned and repossessed assets | $ | 16,716 | $ | 16,728 | $ | 18,628 | $ | 21,990 | $ | 26,075 | |||||||||||||
Investment in affordable housing partnerships | 54,679 | 56,844 | 59,009 | 61,173 | 62,745 | ||||||||||||||||||
15,000 | 15,000 | 15,000 | 15,000 | 15,000 | |||||||||||||||||||
Other assets | 124,793 | 118,465 | 115,049 | 112,533 | 115,184 | ||||||||||||||||||
Total assets | $ | 6,632,530 | $ | 6,667,942 | $ | 6,461,537 | $ | 6,425,358 | $ | 6,292,843 | |||||||||||||
Liabilities: | |||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||
Demand | $ | 838,300 | $ | 870,282 | $ | 1,050,992 | $ | 1,192,091 | $ | 1,341,199 | |||||||||||||
Interest bearing demand | 2,091,384 | 2,005,298 | 1,751,439 | 2,295,212 | 2,263,775 | ||||||||||||||||||
Savings | 30,427 | 32,089 | 33,861 | 39,527 | 38,151 | ||||||||||||||||||
Time certificates of | 1,283,461 | 1,244,128 | 1,329,720 | 1,138,727 | 971,378 | ||||||||||||||||||
Other time certificates | 1,439,699 | 1,437,194 | 1,241,754 | 891,440 | 841,173 | ||||||||||||||||||
Total deposits | $ | 5,683,271 | $ | 5,588,991 | $ | 5,407,766 | $ | 5,556,997 | $ | 5,455,676 | |||||||||||||
Acceptances outstanding | $ | 103 | $ | 448 | $ | 107 | $ | 1,731 | $ | 10,058 | |||||||||||||
Advance from | - | 150,000 | 150,000 | - | - | ||||||||||||||||||
Subordinated debt issuance, net | 148,173 | 148,114 | 148,055 | 147,995 | 147,936 | ||||||||||||||||||
Commitments to fund investment in affordable housing partnerships | 20,824 | 20,930 | 26,709 | 27,490 | 28,611 | ||||||||||||||||||
Other liabilities | 109,651 | 90,692 | 72,359 | 60,074 | 60,009 | ||||||||||||||||||
Total liabilities | $ | 5,962,022 | $ | 5,999,175 | $ | 5,804,996 | $ | 5,794,287 | $ | 5,702,290 | |||||||||||||
Equity: | |||||||||||||||||||||||
Net common stock, no par value | $ | 143,584 | $ | 167,404 | $ | 181,208 | $ | 184,604 | $ | 180,324 | |||||||||||||
Retained earnings | 566,027 | 535,373 | 505,207 | 475,072 | 443,409 | ||||||||||||||||||
Accumulated other comprehensive income | (39,103 | ) | (34,010 | ) | (29,874 | ) | (28,605 | ) | (33,180 | ) | |||||||||||||
Total shareholders' equity | $ | 670,508 | $ | 668,767 | $ | 656,541 | $ | 631,071 | $ | 590,553 | |||||||||||||
Total liabilities and shareholders' equity | $ | 6,632,530 | $ | 6,667,942 | $ | 6,461,537 | $ | 6,425,358 | $ | 6,292,843 | |||||||||||||
Quarter-to-Date Average Balances, Yield and Rates | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
Three months ended | Three months ended | Three months ended | |||||||||||||||||||||||
2023 | 2023 | 2022 | |||||||||||||||||||||||
Interest | Average | Interest | Average | Interest | Average | ||||||||||||||||||||
Average | Income or | Yield/ | Average | Income or | Yield/ | Average | Income or | Yield/ | |||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||
ASSETS | (Dollars in thousands) | ||||||||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||||||
Loans (1,2) | $ | 5,086,302 | $ | 106,695 | 8.32 | % | $ | 5,044,517 | $ | 102,220 | 8.13 | % | $ | 4,908,870 | $ | 71,192 | 5.75 | % | |||||||
Investment securities (3) | 368,968 | 3,422 | 3.68 | % | 397,905 | 3,709 | 3.74 | % | 410,649 | 2,995 | 2.89 | % | |||||||||||||
Federal funds sold | 20,111 | 278 | 5.48 | % | 20,000 | 272 | 5.45 | % | 20,071 | 117 | 2.30 | % | |||||||||||||
Other earning assets | 1,122,176 | 15,235 | 5.39 | % | 970,528 | 12,311 | 5.09 | % | 737,026 | 4,221 | 2.27 | % | |||||||||||||
Total interest earning assets | 6,597,557 | 125,630 | 7.55 | % | 6,432,950 | 118,512 | 7.39 | % | 6,076,616 | 78,525 | 5.13 | % | |||||||||||||
Deferred loan fees, net | (10,071 | ) | (10,417 | ) | (9,333 | ) | |||||||||||||||||||
Allowance for credit losses on loans | (71,503 | ) | (68,956 | ) | (61,477 | ) | |||||||||||||||||||
Noninterest earning assets: | |||||||||||||||||||||||||
Cash and due from banks | 12,101 | 12,712 | 10,562 | ||||||||||||||||||||||
Bank furniture and fixtures | 8,814 | 9,005 | 9,615 | ||||||||||||||||||||||
Right of use assets | 21,491 | 21,988 | 21,404 | ||||||||||||||||||||||
Other assets | 161,470 | 161,369 | 167,797 | ||||||||||||||||||||||
Total assets | $ | 6,719,859 | $ | 6,558,651 | $ | 6,215,184 | |||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||
Interest bearing demand and savings | $ | 2,119,373 | $ | 20,324 | 3.80 | % | $ | 1,931,647 | $ | 16,453 | 3.42 | % | $ | 2,223,848 | $ | 6,455 | 1.15 | % | |||||||
TCD | 1,251,397 | 14,085 | 4.47 | % | 1,259,305 | 12,772 | 4.07 | % | 914,373 | 2,517 | 1.09 | % | |||||||||||||
Other time certificates | 1,429,457 | 15,284 | 4.24 | % | 1,358,567 | 12,664 | 3.74 | % | 834,884 | 1,333 | 0.63 | % | |||||||||||||
Total interest bearing deposits | 4,800,227 | 49,693 | 4.11 | % | 4,549,519 | 41,889 | 3.69 | % | 3,973,105 | 10,305 | 1.03 | % | |||||||||||||
Advance from Fedferal home loan bank | 120,652 | 1,557 | 5.12 | % | 150,000 | 1,888 | 5.05 | % | - | - | 0.00 | % | |||||||||||||
Subordinated debt, net | 148,135 | 1,325 | 3.55 | % | 148,077 | 1,325 | 3.59 | % | 147,900 | 1,325 | 3.55 | % | |||||||||||||
Total interest bearing liabilities | 5,069,014 | 52,575 | 4.11 | % | 4,847,596 | 45,102 | 3.73 | % | 4,121,005 | 11,630 | 1.12 | % | |||||||||||||
Noninterest bearing liabilities: | |||||||||||||||||||||||||
Demand deposits | 854,123 | 931,938 | 1,400,147 | ||||||||||||||||||||||
Lease Liability | 19,759 | 20,708 | 21,332 | ||||||||||||||||||||||
Other liabilities | 98,943 | 81,103 | 74,512 | ||||||||||||||||||||||
Total liabilities | 6,041,839 | 5,881,345 | 5,616,996 | ||||||||||||||||||||||
Shareholders’ equity | 678,020 | 677,306 | 598,188 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,719,859 | $ | 6,558,651 | $ | 6,215,184 | |||||||||||||||||||
Net interest income | $ | 73,055 | $ | 73,410 | $ | 66,895 | |||||||||||||||||||
Net interest spread | 3.44 | % | 3.66 | % | 4.01 | % | |||||||||||||||||||
Net interest margin | 4.39 | % | 4.58 | % | 4.37 | % | |||||||||||||||||||
Cost of Deposits: | |||||||||||||||||||||||||
Noninterest bearing demand deposits | $ | 854,123 | $ | 931,938 | $ | 1,400,147 | |||||||||||||||||||
Interest bearing deposits | 4,800,227 | 49,693 | 4.11 | % | 4,549,519 | 41,889 | 3.69 | % | 3,973,105 | 10,305 | 1.03 | % | |||||||||||||
Total Deposits | $ | 5,654,350 | $ | 49,693 | 3.49 | % | $ | 5,481,457 | $ | 41,889 | 3.07 | % | $ | 5,373,252 | $ | 10,305 | 0.76 | % | |||||||
(1) | Includes non-accrual loans and loans held for sale | ||||||||||||||||||||||||
(2) | Net loan fee income of 1.1 million, $$912,000 and | ||||||||||||||||||||||||
(3) | Yields on securities have been adjusted to a tax-equivalent basis |
Year-to-Date Average Balances, Yield and Rates | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Nine months ended | ||||||||||||||||||
2023 | 2022 | |||||||||||||||||
Interest | Average | Interest | Average | |||||||||||||||
Average | Income or | Yield/ | Average | Income or | Yield/ | |||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||
ASSETS | (Dollars in thousands) | |||||||||||||||||
Interest earning assets: | ||||||||||||||||||
Loans (1,2) | $ | 5,048,452 | $ | 304,796 | 8.07 | % | $ | 4,686,424 | $ | 181,852 | 5.19 | % | ||||||
Investment securities (3) | 402,971 | 11,125 | 3.69 | % | 432,085 | 7,590 | 2.35 | % | ||||||||||
Federal funds sold | 20,111 | 774 | 5.14 | % | 20,093 | 182 | 1.21 | % | ||||||||||
Other earning assets | 965,355 | 36,633 | 5.07 | % | 869,489 | 6,698 | 0.25 | % | ||||||||||
Total interest earning assets | 6,436,889 | 353,328 | 7.34 | % | 6,008,091 | 196,323 | 4.37 | % | ||||||||||
Deferred loan fees, net | (10,142 | ) | (8,257 | ) | ||||||||||||||
Allowance for credit losses on loans | (69,653 | ) | (60,004 | ) | ||||||||||||||
Noninterest earning assets: | ||||||||||||||||||
Cash and due from banks | 11,912 | 11,167 | ||||||||||||||||
Bank furniture and fixtures | 8,931 | 10,024 | ||||||||||||||||
Right of use assets | 21,780 | 21,480 | ||||||||||||||||
Other assets | 161,238 | 149,139 | ||||||||||||||||
Total assets | $ | 6,560,955 | $ | 6,131,640 | ||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
Interest bearing liabilities: | ||||||||||||||||||
Deposits: | ||||||||||||||||||
Interest bearing demand/ savings | $ | 2,097,613 | $ | 53,854 | 3.43 | % | $ | 2,158,471 | $ | 10,373 | 0.64 | % | ||||||
TCD | 1,258,870 | 37,600 | 3.99 | % | 911,931 | 4,755 | 0.70 | % | ||||||||||
Other time certificates | 1,245,556 | 33,798 | 3.63 | % | 897,561 | 3,654 | 0.54 | % | ||||||||||
Total interest bearing deposits | 4,602,039 | 125,252 | 3.64 | % | 3,967,963 | 18,782 | 0.63 | % | ||||||||||
Advance from Fedferal home loan bank | 101,099 | 3,819 | 5.05 | % | - | - | 0.00 | % | ||||||||||
Subordinated debt, net | 148,076 | 3,975 | 3.59 | % | 147,842 | 3,975 | 3.59 | % | ||||||||||
Total interest bearing liabilities | 4,851,214 | 133,046 | 3.67 | % | 4,115,805 | 22,757 | 0.74 | % | ||||||||||
Noninterest bearing liabilities: | ||||||||||||||||||
Demand deposits | 937,184 | 1,329,424 | ||||||||||||||||
Lease Liability | 20,482 | 21,795 | ||||||||||||||||
Other liabilities | 83,213 | 64,058 | ||||||||||||||||
Total liabilities | 5,892,093 | 5,531,082 | ||||||||||||||||
Shareholders’ equity | 668,862 | 600,558 | ||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,560,955 | $ | 6,131,640 | ||||||||||||||
Net interest income | $ | 220,282 | $ | 173,566 | ||||||||||||||
Net interest spread | 3.67 | % | 3.63 | % | ||||||||||||||
Net interest margin | 4.58 | % | 3.86 | % | ||||||||||||||
Cost of Deposits: | ||||||||||||||||||
Noninterest bearing demand deposits | $ | 937,184 | $ | 1,329,424 | ||||||||||||||
Interest bearing deposits | 4,602,039 | 125,252 | 3.64 | % | 3,967,963 | 18,782 | 0.63 | % | ||||||||||
Total Deposits | $ | 5,539,223 | $ | 125,252 | 3.02 | % | $ | 5,297,387 | $ | 18,782 | 0.47 | % | ||||||
(1) | Includes non-accrual loans and loans held for sale | |||||||||||||||||
(2) | Net loan fee income of | |||||||||||||||||
(3) | Yields on securities have been adjusted to a tax-equivalent basis |
Loan and Credit Quality Information | ||||||||||||
Allowance For Credit Losses History | ||||||||||||
Nine Months Ended | Year ended | |||||||||||
(Dollars in 000's) | ||||||||||||
Allowance For Credit Losses | ||||||||||||
Balance at Beginning of Period | $ | 68,472 | $ | 59,969 | ||||||||
Charge-Offs | ||||||||||||
Commercial & Industrial | 124 | 1,222 | ||||||||||
- | 1 | |||||||||||
Total Charge-Offs | 124 | 1,223 | ||||||||||
Recoveries | ||||||||||||
Commercial & Industrial | 1 | - | ||||||||||
- | 2,376 | |||||||||||
Total Recoveries | 1 | 2,376 | ||||||||||
Net Charge-Offs (recoveries) | 123 | (1,153 | ) | |||||||||
Provision for Credit Losses: | 6,500 | 7,350 | ||||||||||
Balance at End of Period | $ | 74,849 | $ | 68,472 | ||||||||
Average Loans Held for Investment | $ | 5,047,971 | $ | 4,760,815 | ||||||||
Loans Held for Investment at End of Period | $ | 5,128,242 | $ | 5,074,793 | ||||||||
Net Charge-Offs (recoveries) to Average Loans | 0.00 | % | -0.02 | % | ||||||||
Allowances for Credit Losses to Loans at End of Period | 1.46 | % | 1.35 | % | ||||||||
AT THE COMPANY: Executive Vice President Chief Financial Officer (213) 891-1188 | AT FINANCIAL PROFILES: General Information (310) 622-8240 PFBC@finprofiles.com |
Source:
2023 GlobeNewswire, Inc., source