Randall S. Eslick, President and Chief Executive Officer of
Bank of Commerce Holdings (NASDAQ:BOCH)
(the
“Company”), a $1.1 billion asset bank holding company and
parent company of Redding Bank of Commerce (the “Bank”), today
announced financial results for the quarter and the year ended
December 31, 2016. Net income available to common shareholders for
the quarter ended December 31, 2016 was $2.3 million or $0.17 per
share – diluted, compared with $1.7 million or $0.13 per share –
diluted for the same period of 2015. Net income available to common
shareholders for the year ended December 31, 2016 was $5.3 million
or $0.39 per share –diluted compared with $8.3 million or $0.62 per
share – diluted for the same period of 2015.
Financial highlights for the fourth quarter of
2016:
- Net income available to common shareholders of $2.3 million for
the three months ended December 31, 2016 was an increase of $568
thousand (33%) from $1.7 million available to common shareholders
earned during the same period in the prior year.
- Return on average assets improved to 0.81% for the fourth
quarter of 2016 compared to 0.68% for the same period in the prior
year.
- Return on average equity improved to 9.69% for the fourth
quarter of 2016 compared to 6.51% for the same period in the prior
year.
- Deposits at December 31, 2016 totaled $1.0 billion, an increase
of $29.2 million (12% annualized) since September 30, 2016. This
growth was centered in core deposits in our Sacramento
marketplace.
- Gross loans at December 31, 2016 totaled $804.2 million, an
increase of $25.2 million (13% annualized) since September 30,
2016. Most of this growth occurred in our Sacramento marketplace
and is the result of investments in our SBA division and in our
expanded Sacramento commercial banking group.
- Tangible book value per common share was $6.83 at December 31,
2016 compared to $6.84 at September 30, 2016.
Financial highlights for the year ended December 31,
2016:
- Net income available to common shareholders of $5.3 million for
the year ended December 31, 2016 was a decrease of $3.0 million
(37%) from $8.3 million available to common shareholders earned
during the prior year. Net income for 2016 is negatively impacted
by $3.0 million of branch acquisition and balance sheet
restructuring costs, a $546 thousand impairment of an investment
security and the write-off of a $363 thousand deferred tax asset
during prior quarters.
- Return on average assets declined to 0.49% for the year ended
December 31, 2016 compared to 0.84% for the prior year.
- Return on average equity declined to 5.68% for the year ended
December 31, 2016 compared to 7.83% for the prior year.
- Deposits at December 31, 2016 totaled $1.0 billion, an increase
of $200.9 million (25%) since December 31, 2015
- Gross loans at December 31, 2016 totaled $804.2 million, an
increase of $87.6 million (12%) since December 31, 2015.
- Nonperforming assets at December 31, 2016 totaled $12.1
million, a decrease of $3.4 million (22%) compared to December 31,
2015.
- Net loan loss recoveries of $364 thousand combined with
continuing improved asset quality resulted in no provision for loan
and lease losses.
Randall S. Eslick, President and CEO commented: “It has been a
very productive year. As a result of the exceptional efforts
of our dedicated and talented employees, we are a much improved
company from 12 months ago. The acquisition of five new offices,
the restructuring of our balance sheet and our significant growth
in both loans and core deposits provide a solid foundation for
continued success in 2017.”
Forward-Looking Statements
This quarterly press release includes forward-looking
information, which is subject to the “safe harbor” created by the
Securities Act of 1933, and Securities Act of 1934. These
forward-looking statements (which involve our plans, beliefs and
goals, refer to estimates or use similar terms) involve certain
risks and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. Such risks
and uncertainties include, but are not limited to, the following
factors:
- Competitive pressure in the banking industry and changes in the
regulatory environment
- Changes in the interest rate environment and volatility of rate
sensitive assets and liabilities
- A decline in the health of the economy nationally or regionally
which could reduce the demand for loans or reduce the value of real
estate collateral securing most of our loans
- Credit quality deterioration which could cause an increase in
the provision for loan and lease losses
- Asset/Liability matching risks and liquidity risks
- Changes in the securities markets
For additional information concerning risks and uncertainties
related to the Company and its operations please refer to the
Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2015 and under the heading: “Risk Factors” and
subsequent reports on Form 10-Q and current reports on Form 8-K.
Readers are cautioned not to place undue reliance on these
forward-looking statements. The Company undertakes no obligation
and specifically disclaims any obligation, to revise or publicly
release the results of any revision or update to these
forward-looking statements to reflect events or circumstances that
occur after the date the statements were made.
TABLE 1 |
|
SELECTED FINANCIAL INFORMATION -
UNAUDITED |
|
(amounts in thousands except per share
data) |
|
|
|
For The Three Months Ended |
|
For The Twelve Months Ended |
|
Net income,
average assets and |
|
December 31, |
|
|
September 30, |
|
December 31, |
|
average shareholders' equity |
|
2016 |
|
|
2015 |
|
|
2016 |
|
2016 |
|
2015 |
|
Income available to
common shareholders |
|
$ |
2,297 |
|
|
$ |
1,729 |
|
|
$ |
2,366 |
|
|
$ |
5,259 |
|
$ |
8,295 |
|
Average total
assets |
|
$ |
1,126,034 |
|
|
$ |
1,005,870 |
|
|
$ |
1,093,918 |
|
|
$ |
1,079,750 |
|
$ |
992,731 |
|
Average total earning
assets |
|
$ |
1,051,387 |
|
|
$ |
940,831 |
|
|
$ |
1,019,230 |
|
|
$ |
1,007,793 |
|
$ |
927,536 |
|
Average shareholders'
equity |
|
$ |
94,326 |
|
|
$ |
105,417 |
|
|
$ |
93,238 |
|
|
$ |
92,554 |
|
$ |
105,991 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected performance ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets |
|
|
0.81 |
% |
|
|
0.68 |
% |
|
|
0.86 |
% |
|
|
0.49 |
% |
|
0.84 |
% |
Return on average
equity |
|
|
9.69 |
% |
|
|
6.51 |
% |
|
|
10.10 |
% |
|
|
5.68 |
% |
|
7.83 |
% |
Efficiency ratio |
|
|
73.15 |
% |
|
|
73.58 |
% |
|
|
69.61 |
% |
|
|
81.88 |
% |
|
67.40 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and per share amounts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
- basic |
|
|
13,370 |
|
|
|
13,341 |
|
|
|
13,369 |
|
|
|
13,367 |
|
|
13,331 |
|
Weighted average shares
- diluted |
|
|
13,476 |
|
|
|
13,395 |
|
|
|
13,439 |
|
|
|
13,425 |
|
|
13,365 |
|
Earnings per share -
basic |
|
$ |
0.17 |
|
|
$ |
0.13 |
|
|
$ |
0.18 |
|
|
$ |
0.39 |
|
$ |
0.62 |
|
Earnings per share -
diluted |
|
$ |
0.17 |
|
|
$ |
0.13 |
|
|
$ |
0.18 |
|
|
$ |
0.39 |
|
$ |
0.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, |
|
|
At September 30, |
|
|
|
Share and per share amounts |
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
|
|
|
Common shares
outstanding (1) |
|
|
13,440 |
|
|
|
13,385 |
|
|
|
13,439 |
|
|
|
|
|
|
|
|
Tangible book value per
common share |
|
$ |
6.83 |
|
|
$ |
6.76 |
|
|
$ |
6.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank of Commerce
Holdings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1
capital ratio (2) |
|
|
9.43 |
% |
|
|
10.06 |
% |
|
|
9.60 |
% |
|
|
|
|
|
|
|
Tier 1 capital ratio
(2) |
|
|
10.42 |
% |
|
|
11.16 |
% |
|
|
10.65 |
% |
|
|
|
|
|
|
|
Total capital ratio
(2) |
|
|
12.68 |
% |
|
|
13.52 |
% |
|
|
12.96 |
% |
|
|
|
|
|
|
|
Tier 1 leverage ratio
(2) |
|
|
9.13 |
% |
|
|
10.03 |
% |
|
|
9.28 |
% |
|
|
|
|
|
|
|
Tangible common equity
ratio |
|
|
8.07 |
% |
|
|
8.91 |
% |
|
|
8.30 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redding Bank of
Commerce |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1
capital ratio |
|
|
12.31 |
% |
|
|
13.31 |
% |
|
|
12.62 |
% |
|
|
|
|
|
|
|
Tier 1 capital
ratio |
|
|
12.31 |
% |
|
|
13.31 |
% |
|
|
12.62 |
% |
|
|
|
|
|
|
|
Total capital
ratio |
|
|
13.55 |
% |
|
|
14.56 |
% |
|
|
13.87 |
% |
|
|
|
|
|
|
|
Tier 1 leverage
ratio |
|
|
10.80 |
% |
|
|
11.98 |
% |
|
|
11.03 |
% |
|
|
|
|
|
|
|
|
(1)
Includes unvested restricted shares issued in accordance with the
Bank's equity incentive plan. |
(2) The
Company and the Bank continue to meet all capital adequacy
requirements to which they are subject. The capital ratios for 2016
were impacted by increased average total assets, the addition of
$1.8 million of core deposit intangibles and $665 thousand of
goodwill recorded in conjunction with the acquisition of five
branches in March of 2016. |
|
BALANCE SHEET OVERVIEW
As of December 31, 2016, the Company had total consolidated
assets of $1.1 billion, gross loans of $804.2 million, allowance
for loan and lease losses (“ALLL”) of $11.5 million, total deposits
of $1.0 billion, and shareholders’ equity of $94.3 million.
TABLE 2 |
LOAN BALANCES BY TYPE - UNAUDITED |
(amounts in thousands) |
|
|
At December 31, |
|
|
|
|
|
|
At September 30, |
|
|
|
|
% of |
|
|
|
% of |
|
Change |
|
|
|
% of |
|
|
2016 |
|
|
Total |
|
2015 |
|
|
Total |
|
Amount |
|
% |
|
2016 |
|
|
Total |
Commercial |
|
$ |
153,844 |
|
|
19 |
% |
|
$ |
132,805 |
|
|
19 |
% |
|
$ |
21,039 |
|
|
16 |
|
% |
|
$ |
136,235 |
|
|
17 |
% |
Real estate -
construction and land development |
|
|
57,771 |
|
|
7 |
|
|
|
28,319 |
|
|
4 |
|
|
|
29,452 |
|
|
104 |
|
% |
|
|
48,365 |
|
|
6 |
|
Real estate -
commercial non-owner occupied |
|
|
287,455 |
|
|
36 |
|
|
|
243,374 |
|
|
33 |
|
|
|
44,081 |
|
|
18 |
|
% |
|
|
281,977 |
|
|
36 |
|
Real estate -
commercial owner occupied |
|
|
151,516 |
|
|
19 |
|
|
|
156,299 |
|
|
22 |
|
|
|
(4,783 |
) |
|
(3 |
) |
% |
|
|
160,474 |
|
|
21 |
|
Real estate -
residential - ITIN |
|
|
45,566 |
|
|
6 |
|
|
|
49,106 |
|
|
7 |
|
|
|
(3,540 |
) |
|
(7 |
) |
% |
|
|
46,458 |
|
|
6 |
|
Real estate -
residential - 1-4 family mortgage |
|
|
12,866 |
|
|
2 |
|
|
|
13,640 |
|
|
2 |
|
|
|
(774 |
) |
|
(6 |
) |
% |
|
|
12,994 |
|
|
2 |
|
Real estate -
residential - equity lines |
|
|
43,512 |
|
|
5 |
|
|
|
43,223 |
|
|
6 |
|
|
|
289 |
|
|
1 |
|
% |
|
|
40,139 |
|
|
5 |
|
Consumer and other |
|
|
51,681 |
|
|
6 |
|
|
|
49,873 |
|
|
7 |
|
|
|
1,808 |
|
|
4 |
|
% |
|
|
52,377 |
|
|
7 |
|
Gross
loans |
|
|
804,211 |
|
|
100 |
% |
|
|
716,639 |
|
|
100 |
% |
|
|
87,572 |
|
|
12 |
|
% |
|
|
779,019 |
|
|
100 |
% |
Deferred fees and
costs |
|
|
1,324 |
|
|
|
|
|
|
870 |
|
|
|
|
|
|
454 |
|
|
|
|
|
|
1,155 |
|
|
|
|
Loans,
net of deferred fees and costs |
|
|
805,535 |
|
|
|
|
|
|
717,509 |
|
|
|
|
|
|
88,026 |
|
|
|
|
|
|
780,174 |
|
|
|
|
Allowance for loan and
lease losses |
|
|
(11,544 |
) |
|
|
|
|
|
(11,180 |
) |
|
|
|
|
|
(364 |
) |
|
|
|
|
|
(11,849 |
) |
|
|
|
Net
loans |
|
$ |
793,991 |
|
|
|
|
|
$ |
706,329 |
|
|
|
|
|
$ |
87,662 |
|
|
|
|
|
$ |
768,325 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average yield on loans
during the quarter |
|
|
4.69 |
% |
|
|
|
|
|
4.61 |
% |
|
|
|
|
|
0.08 |
|
|
|
|
|
|
4.66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company recorded gross loan balances of $804.2 million at
December 31, 2016, compared with $716.6 million and $779.0 million
at December 31, 2015 and September 30, 2016, respectively, an
increase of $87.6 million and $25.2 million, respectively. The
increase in gross loans compared to the same period a year ago and
the prior period was driven by organic loan originations in our
Sacramento marketplace and is the result of investments in our SBA
division and in our expanded Sacramento commercial banking
group.
The increase in the ALLL at December 31, 2016 compared to the
same date a year ago resulted from net loan loss recoveries. As a
result of these net recoveries and continued improved asset
quality, no provision for loan and lease losses was deemed
necessary during the current quarter or during the prior seven
consecutive quarters. See table 8 for additional details of the
ALLL.
TABLE 3 |
CASH, CASH EQUIVALENTS, AND INVESTMENT SECURITIES -
UNAUDITED |
(amounts in thousands) |
|
|
At December 31, |
|
|
|
|
|
|
|
At September 30, |
|
|
|
|
% of |
|
|
|
% of |
|
Change |
|
|
|
% of |
|
|
2016 |
|
|
Total |
|
2015 |
|
|
Total |
|
Amount |
|
% |
|
2016 |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
|
$ |
16,419 |
|
|
6 |
% |
|
$ |
9,730 |
|
|
4 |
% |
|
$ |
6,689 |
|
|
69 |
|
% |
|
$ |
19,699 |
|
|
7 |
% |
Interest-bearing
deposits in other banks |
|
|
51,988 |
|
|
19 |
|
|
|
41,462 |
|
|
17 |
|
|
|
10,526 |
|
|
25 |
|
% |
|
|
65,431 |
|
|
24 |
|
Total
cash and cash equivalents |
|
|
68,407 |
|
|
25 |
|
|
|
51,192 |
|
|
21 |
|
|
|
17,215 |
|
|
34 |
|
% |
|
|
85,130 |
|
|
31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and
agencies |
|
|
— |
|
|
0 |
|
|
|
3,943 |
|
|
2 |
|
|
|
(3,943 |
) |
|
(100 |
) |
% |
|
|
— |
|
|
0 |
|
Obligations of state
and political subdivisions |
|
|
59,428 |
|
|
22 |
|
|
|
61,104 |
|
|
25 |
|
|
|
(1,676 |
) |
|
(3 |
) |
% |
|
|
59,952 |
|
|
22 |
|
Residential mortgage
backed securities and collateralized mortgage obligations |
|
|
69,604 |
|
|
25 |
|
|
|
32,137 |
|
|
13 |
|
|
|
37,467 |
|
|
117 |
|
% |
|
|
54,046 |
|
|
20 |
|
Corporate
securities |
|
|
16,116 |
|
|
6 |
|
|
|
33,778 |
|
|
14 |
|
|
|
(17,662 |
) |
|
(52 |
) |
% |
|
|
16,346 |
|
|
6 |
|
Commercial mortgage
backed securities |
|
|
15,514 |
|
|
6 |
|
|
|
12,769 |
|
|
5 |
|
|
|
2,745 |
|
|
21 |
|
% |
|
|
16,254 |
|
|
6 |
|
Other asset backed
securities |
|
|
14,512 |
|
|
5 |
|
|
|
15,299 |
|
|
6 |
|
|
|
(787 |
) |
|
(5 |
) |
% |
|
|
9,842 |
|
|
4 |
|
Total
investment securities - AFS |
|
|
175,174 |
|
|
64 |
|
|
|
159,030 |
|
|
65 |
|
|
|
16,144 |
|
|
10 |
|
% |
|
|
156,440 |
|
|
58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Obligations of state
and political subdivisions - HTM |
|
|
31,187 |
|
|
11 |
|
|
|
35,899 |
|
|
14 |
|
|
|
(4,712 |
) |
|
(13 |
) |
% |
|
|
31,771 |
|
|
11 |
|
Total
investment securities - AFS and HTM |
|
|
206,361 |
|
|
75 |
|
|
|
194,929 |
|
|
79 |
|
|
|
11,432 |
|
|
6 |
|
% |
|
|
188,211 |
|
|
69 |
|
Total cash, cash
equivalents and investment securities |
|
$ |
274,768 |
|
|
100 |
% |
|
$ |
246,121 |
|
|
100 |
% |
|
$ |
28,647 |
|
|
12 |
|
% |
|
$ |
273,341 |
|
|
100 |
% |
Average yield on
interest bearing due from banks and investment securities during
the quarter |
|
|
1.95 |
% |
|
|
|
|
|
2.51 |
% |
|
|
|
|
|
(0.56 |
) |
|
|
|
|
|
2.11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2016, we maintained noninterest-bearing cash
positions of $16.4 million and interest-bearing deposits in the
amount of $52.0 million at the Federal Reserve Bank and
correspondent banks. During the fourth quarter of 2016, we deployed
liquidity provided by the March 2016 branch acquisition and strong
organic deposit growth into loan originations and available for
sale securities. For the quarter ended December 31, 2016 compared
to the prior quarter a $16.7 million decrease in total cash and
cash equivalents and $29.2 million from increased total deposits
was used to fund a $25.2 million increase in gross loan balances
and an $18.7 million increase in available for sale securities.
Available-for-sale investment securities totaled $175.2 million
at December 31, 2016, compared with $159.0 million and $156.4
million at December 31, 2015 and September 30, 2016, respectively.
Our available-for-sale investment portfolio provides us with a
secondary source of liquidity to fund other higher yielding asset
opportunities, such as loan originations and wholesale loan
purchases. During the fourth quarter of 2016 we purchased 24
securities with a par value of $31.3 million and weighted average
yield of 2.16% and sold four securities with a par value of $4.1
million and weighted average yield of 2.64%. The sales activity on
available for sale securities resulted in $52.0 thousand in net
realized gains. During the same period, we received $6.0 million in
proceeds from principal payments, calls and maturities within the
available-for-sale investment securities portfolio. Average
securities balances and weighted average tax equivalent yields for
the quarters ended December 31, 2016 and 2015 were $197.2 million
and 3.02% compared to $189.2 million and 3.57%, respectively.
During the second quarter of 2016, we recorded an
other-than-temporary impairment of $546 thousand on an investment
security. We did not recognize any additional, other-than-temporary
impairment losses for the year ended December 31, 2016, or the year
ended December 31, 2015.
At December 31, 2016, our net unrealized losses on
available-for-sale investment securities were $1.3 million compared
with net unrealized gains of $1.6 million and $2.3 million at
December 31, 2015 and September 30, 2016, respectively. The
decrease in net unrealized gains between September 30, 2016 and
December 31, 2016 is primarily due to significant changes in market
interest rates over the past three months.
TABLE 4 |
DEPOSITS BY TYPE - UNAUDITED |
(amounts in thousands) |
|
|
At December 31, |
|
|
|
|
|
|
|
At September 30, |
|
|
|
|
% of |
|
|
|
% of |
|
|
Change |
|
|
|
% of |
|
|
2016 |
|
|
Total |
|
2015 |
|
|
Total |
|
Amount |
|
% |
|
2016 |
|
|
Total |
Demand - noninterest
bearing |
|
$ |
270,398 |
|
|
27 |
% |
|
$ |
169,507 |
|
|
21 |
% |
|
$ |
100,891 |
|
|
60 |
|
% |
|
$ |
254,435 |
|
|
26 |
% |
Demand - interest
bearing |
|
|
405,569 |
|
|
40 |
|
|
|
315,658 |
|
|
39 |
|
|
|
89,911 |
|
|
28 |
|
% |
|
|
394,525 |
|
|
40 |
|
Total demand |
|
|
675,967 |
|
|
67 |
|
|
|
485,165 |
|
|
60 |
|
|
|
190,802 |
|
|
39 |
|
% |
|
|
648,960 |
|
|
66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
|
113,309 |
|
|
11 |
|
|
|
94,503 |
|
|
12 |
|
|
|
18,806 |
|
|
20 |
|
% |
|
|
110,201 |
|
|
11 |
|
Total non-maturing
deposits |
|
|
789,276 |
|
|
78 |
|
|
|
579,668 |
|
|
72 |
|
|
|
209,608 |
|
|
36 |
|
% |
|
|
759,161 |
|
|
77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of
deposit |
|
|
215,390 |
|
|
22 |
|
|
|
224,067 |
|
|
28 |
|
|
|
(8,677 |
) |
|
(4 |
) |
% |
|
|
216,332 |
|
|
23 |
|
Total deposits |
|
$ |
1,004,666 |
|
|
100 |
% |
|
$ |
803,735 |
|
|
100 |
% |
|
$ |
200,931 |
|
|
25 |
|
% |
|
$ |
975,493 |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rate on
interest bearing deposits during the quarter |
|
|
0.40 |
% |
|
|
|
|
|
0.48 |
% |
|
|
|
|
|
(0.08 |
) |
|
|
|
|
|
0.39 |
% |
|
|
|
Average rate on all
deposits during the quarter |
|
|
0.29 |
% |
|
|
|
|
|
0.38 |
% |
|
|
|
|
|
(0.09 |
) |
|
|
|
|
|
0.29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits at December 31, 2016, increased $200.9 million or
25% to $1.0 billion compared to December 31, 2015, and increased
$29.2 thousand or 3% compared to September 30, 2016. Total
non-maturing deposits increased $209.6 million or 36% compared to
the same date a year ago and increased $30.1 million or 4% compared
to September 30, 2016. Certificates of deposit decreased $8.7
million or 4% compared to the same date a year ago and decreased
$942 thousand or 0.4% compared to September 30, 2016.
During the first quarter of 2016 the branch acquisition provided
an additional $149.0 million of deposits and we called and redeemed
$17.5 million of brokered certificates of deposit. At December 31,
2016, the deposits in the acquired branches totaled $145.6
million.
TABLE 5 |
WHOLESALE AND BROKERED DEPOSITS -
UNAUDITED |
(amounts in thousands) |
|
|
At December 31, |
|
At September 30, |
|
|
2016 |
|
2015 |
|
2016 |
CDARS / ICS reciprocal
deposits |
|
$ |
65,212 |
|
$ |
76,919 |
|
$ |
59,502 |
Third party brokered
time deposits |
|
|
— |
|
|
17,509 |
|
|
— |
Brokered deposits per
Call Report |
|
|
65,212 |
|
|
94,428 |
|
|
59,502 |
Online listing service
time deposits |
|
|
48,900 |
|
|
58,462 |
|
|
52,456 |
Total wholesale and
brokered deposits |
|
$ |
114,112 |
|
$ |
152,890 |
|
$ |
111,958 |
|
|
|
|
|
|
|
|
|
|
In accordance with regulatory Call Report instructions, the Bank
will file (or has filed) quarterly Call Reports which list brokered
deposits of $65.2 million, $94.4 million and $59.5 million at
December 31, 2016, December 31, 2015 and September 30, 2016,
respectively.
INCOME STATEMENT OVERVIEW
TABLE 6 |
SUMMARY INCOME STATEMENT - UNAUDITED |
(amounts in thousands, except per share
data) |
|
|
For The Three Months Ended |
|
|
December 31, |
|
Change |
|
September 30, |
|
Change |
|
|
2016 |
|
2015 |
|
Amount |
|
% |
|
2016 |
|
Amount |
|
% |
Interest income |
|
$ |
10,518 |
|
$ |
9,732 |
|
$ |
786 |
|
|
8 |
|
% |
|
$ |
10,330 |
|
$ |
188 |
|
|
2 |
|
% |
Interest expense |
|
|
1,084 |
|
|
1,381 |
|
|
(297 |
) |
|
(22 |
) |
% |
|
|
1,054 |
|
|
30 |
|
|
3 |
|
% |
Net interest
income |
|
|
9,434 |
|
|
8,351 |
|
|
1,083 |
|
|
13 |
|
% |
|
|
9,276 |
|
|
158 |
|
|
2 |
|
% |
Provision for loan and
lease losses |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
% |
|
|
— |
|
|
— |
|
|
— |
|
% |
Noninterest income |
|
|
1,250 |
|
|
640 |
|
|
610 |
|
|
95 |
|
% |
|
|
959 |
|
|
291 |
|
|
30 |
|
% |
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branch
acquisition and balance sheet reconfiguration costs |
|
|
— |
|
|
347 |
|
|
(347 |
) |
|
(100 |
) |
% |
|
|
— |
|
|
— |
|
|
— |
|
% |
Other
noninterest expense |
|
|
7,815 |
|
|
6,269 |
|
|
1,546 |
|
|
25 |
|
% |
|
|
7,125 |
|
|
690 |
|
|
10 |
|
% |
Income before provision
for income taxes |
|
|
2,869 |
|
|
2,375 |
|
|
494 |
|
|
21 |
|
% |
|
|
3,110 |
|
|
(241 |
) |
|
(8 |
) |
% |
Provision for income
taxes |
|
|
572 |
|
|
505 |
|
|
67 |
|
|
13 |
|
% |
|
|
744 |
|
|
(172 |
) |
|
(23 |
) |
% |
Net
income |
|
$ |
2,297 |
|
$ |
1,870 |
|
$ |
427 |
|
|
23 |
|
% |
|
$ |
2,366 |
|
|
(69 |
) |
|
(3 |
) |
% |
Less: Preferred stock
extinguishment costs |
|
|
— |
|
|
102 |
|
|
(102 |
) |
|
(100 |
) |
% |
|
|
— |
|
|
— |
|
|
— |
|
% |
Less: Preferred
dividends |
|
|
— |
|
|
39 |
|
|
(39 |
) |
|
(100 |
) |
% |
|
|
— |
|
|
— |
|
|
— |
|
% |
Income
available to common shareholders |
|
$ |
2,297 |
|
$ |
1,729 |
|
$ |
568 |
|
|
33 |
|
% |
|
$ |
2,366 |
|
$ |
(69 |
) |
|
(3 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share |
|
$ |
0.17 |
|
$ |
0.13 |
|
$ |
0.04 |
|
|
31 |
|
% |
|
$ |
0.18 |
|
$ |
(0.01 |
) |
|
(6 |
) |
% |
Average basic
shares |
|
|
13,370 |
|
|
13,341 |
|
|
29 |
|
|
— |
|
% |
|
|
13,369 |
|
|
1 |
|
|
— |
|
% |
Diluted earnings per
share |
|
$ |
0.17 |
|
$ |
0.13 |
|
$ |
0.04 |
|
|
31 |
|
% |
|
$ |
0.18 |
|
$ |
(0.01 |
) |
|
(6 |
) |
% |
Average diluted
shares |
|
|
13,476 |
|
|
13,395 |
|
|
81 |
|
|
1 |
|
% |
|
|
13,439 |
|
|
37 |
|
|
— |
|
% |
Dividends declared per
common share |
|
$ |
0.03 |
|
$ |
0.03 |
|
$ |
— |
|
|
— |
|
% |
|
$ |
0.03 |
|
$ |
— |
|
|
— |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter of 2016 Compared With Fourth Quarter of
2015
Net income available to common shareholders for the fourth
quarter of 2016 increased $568 thousand compared to the fourth
quarter of 2015. In the current quarter, net interest income was
$1.1 million higher and noninterest income was $610 thousand
higher. These positive changes were offset by an increase in
noninterest expense of $1.2 million and a provision for income tax
that was $67 thousand higher.
Net Interest Income
Net interest income increased $1.1 million over a year
previous.
Interest income for the three months ended December 31, 2016
increased $786 thousand or 8% to $10.5 million. Interest and fees
on loans increased $882 thousand primarily due to increased average
loan balances. Interest on interest bearing deposits due from banks
increased $71 thousand while interest on securities decreased $167
thousand.
Interest expense for the fourth quarter of 2016 decreased $297
thousand or 22% to $1.1 million. The net decrease was caused by the
following.
- Interest on FHLB term debt decreased $499 thousand. During the
first quarter of 2016 all FHLB term debt was repaid and an interest
rate hedge associated with $75.0 million of that debt was
terminated
- Interest on $20.0 million of senior and subordinated term debt
increased $223 thousand. The senior and subordinated term debt was
issued during the fourth quarter of 2015 to redeem $20.0 million of
preferred stock
- Interest on interest bearing deposits decreased $34 thousand.
Interest bearing deposits increased $100.0 million compared to the
prior year, but the rate paid on all interest bearing deposits
decreased by 9 basis points
- Interest on junior subordinated debentures and other borrowings
increased $13 thousand
Noninterest Income
Noninterest income for the three months ended December 31, 2016
increased $610 thousand compared to the same period a year
ago. Our branch and offsite ATM acquisition completed in the first
quarter, enhanced point of sale and ATM fees by $177 thousand and
service charges on deposit accounts by $69 thousand for the quarter
ended December 31, 2016 compared to the same period a year ago.
Federal Home Loan Bank of San Francisco stock dividends increased
$254 thousand compared to the same period a year ago primarily due
to a special dividend recorded during the three months ended
December 31, 2016.
Noninterest Expense
Noninterest expense for the three months ended increased $1.2
million compared to the same period a year ago. The increase was
primarily driven by increased costs to operate the five newly
acquired branches and three offsite ATM locations. The net increase
in noninterest expenses during the current quarter compared to the
same period a year ago included the following:
- Salaries and occupancy costs directly related to the newly
acquired branch and offsite ATM locations of $574 thousand
- Salaries and occupancy costs for all other locations increased
$338 thousand primarily as a result of investment in our Sacramento
marketplace commercial banking group
- Data processing fees increased $253 thousand
- Telecommunications expense increased $92 thousand
- ATM processing fees increased $53 thousand as a result of the
additional activity at the recently acquired branch and offsite ATM
locations
- Branch acquisition costs decreased $347 thousand
Income Tax Provision
During the three months ended December 31, 2016, the Company
recorded a provision for income taxes of $572 thousand (19.94% of
pretax income) compared with a provision for income taxes of $505
million (21.26% of pretax income) for the same period a year
ago.
Fourth Quarter of 2016 Compared With Third Quarter of
2016
Net income available to common shareholders for the fourth
quarter of 2016 decreased $69 thousand over the third quarter of
2016. In the current quarter, net interest income was $158 thousand
higher, noninterest income was $291 thousand higher and the
provision for income taxes decreased $172 thousand. These positive
changes were offset by noninterest expenses that were $690 thousand
higher.
Net Interest Income
Net interest income increased $158 thousand over the prior
quarter.
Interest income for the three months ended December 31, 2016
increased $188 thousand or 2% to $10.5 million compared to
the prior quarter. Interest and fees on loans increased $174
thousand due to increased average balances and increased yields.
Interest on interest bearing deposits due from banks increased $28
thousand due to increased average balances and increased yields.
These positive changes were partially offset by decreased interest
on investment securities of $14 thousand.
Interest expense for the three months December 31, 2016
increased $30 thousand or 3% to $1.1 million compared to the prior
quarter. Average total deposits for the fourth quarter of 2016
increased $30.0 million from the third quarter of 2016. The growth
was in low cost core deposits.
Noninterest Income
Noninterest income for the three months ended December 31, 2016
increased $291 thousand compared to the prior quarter. During the
current quarter Federal Home Loan Bank of San Francisco stock
dividends increased $251 thousand primarily due to a special
dividend recorded during the three months ended December 31,
2016.
Noninterest Expense
Noninterest expense for the three months ended December 31, 2016
increased $690 thousand compared to the prior quarter.
The increase in noninterest expense was primarily driven by
following items:
- Salaries and related benefits costs increased $251
thousand
- Professional service fees increased $178 thousand
- Deferred loan origination costs decreased $113 thousand
- Data processing fees increased $69 thousand
- Advertising costs increased $73 thousand
Income Tax Provision
During the three months ended December 31, 2016, we recorded a
provision for income taxes of $572 thousand (19.94% of pretax
income) compared with a provision for income taxes of $744 thousand
(23.92% of pretax income) for the prior quarter. Our income tax
provision is composed of two main components: 1) federal and state
income taxes based on our income and 2) amortization of our
investments in affordable housing partnerships. The decrease in the
effective tax rate during the three months ended December 31, 2016
when compared to the prior quarter is due to a decrease in the
amortization of our investments in affordable housing
partnerships.
Earnings Per Share
Diluted earnings per share available to common shareholders were
$0.17 for the three months ended December 31, 2016 compared with
diluted earnings per share available to common shareholders of
$0.13 for the same period a year ago, and $0.18 for the prior
period. The number of shares outstanding during these periods has
not changed significantly. Changes in earnings per share are the
result of changes in net income.
TABLE 7 |
NET INTEREST MARGIN - UNAUDITED |
(amounts in thousands) |
|
|
For The Three Months Ended |
|
|
December 31, |
|
Change |
|
September 30, |
|
Change |
|
|
2016 |
|
2015 |
|
Amount |
|
2016 |
|
Amount |
Yield on average
interest earning assets |
|
|
3.98 |
% |
|
|
4.10 |
% |
|
|
(0.12 |
) |
|
|
4.03 |
% |
|
|
(0.05 |
) |
Interest expense to
fund average earning assets |
|
|
0.41 |
% |
|
|
0.58 |
% |
|
|
(0.17 |
) |
|
|
0.41 |
% |
|
|
0.00 |
|
Net interest margin -
nominal |
|
|
3.57 |
% |
|
|
3.52 |
% |
|
|
0.05 |
|
|
|
3.62 |
% |
|
|
(0.05 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield on average
interest earning assets - tax equivalent basis |
|
|
4.08 |
% |
|
|
4.23 |
% |
|
|
(0.15 |
) |
|
|
4.14 |
% |
|
|
(0.06 |
) |
Interest expense to
fund average earning assets |
|
|
0.41 |
% |
|
|
0.58 |
% |
|
|
(0.17 |
) |
|
|
0.41 |
% |
|
|
0.00 |
|
Net interest margin -
tax equivalent basis |
|
|
3.67 |
% |
|
|
3.65 |
% |
|
|
0.02 |
|
|
|
3.73 |
% |
|
|
(0.06 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average earning
assets |
|
$ |
1,051,387 |
|
|
$ |
940,831 |
|
|
$ |
110,556 |
|
|
$ |
1,019,230 |
|
|
$ |
32,157 |
|
Average interest
bearing liabilities |
|
$ |
757,252 |
|
|
$ |
712,807 |
|
|
$ |
44,445 |
|
|
$ |
749,103 |
|
|
$ |
8,149 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The current quarter net interest margin decreased five basis
points to 3.57% as compared to the prior quarter due to decreased
yields in the investment portfolio. In the current interest rate
environment, cash flows from maturities and repayments are being
reinvested at interest rates lower than the maturing
instruments.
The net interest margin was 3.57% for the current quarter
compared to 3.52% for the same period a year ago. The 12 basis
point decrease in yield on average earning assets has been offset
by a 17 basis point decrease in interest expense to fund average
earning assets. The decrease in interest income compared to the
same quarter in the prior year is due to decreased yields in the
investment portfolio and partially offset by increased yields on
loans. The decrease in interest expense resulted from our
acquisition of low cost core deposits and our ability to
restructure our balance sheet.
Deposit balances increased $29.2 million and $200.9 million
compared to the prior quarter and the same period a year ago
respectively. The increase in deposit balances compared to the
prior quarter was centered entirely in core deposits. The increase
in deposit balances compared to the same period a year ago results
from both the March 2016 branch acquisition and strong organic
growth. Our overall cost of total deposits decreased to 0.29% for
the quarter ended December 31, 2016 from 0.38% for the same period
a year ago and were unchanged from 0.29% for the prior quarter.
TABLE 8 |
|
ALLOWANCE FOR LOAN AND LEASE LOSSES ROLL FORWARD AND
IMPAIRED LOAN TOTALS - UNAUDITED |
|
(amounts in thousands) |
|
|
|
For The Three Months Ended |
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
Beginning balance |
|
$ |
11,849 |
|
|
|
$ |
11,864 |
|
|
|
$ |
11,495 |
|
|
|
$ |
11,180 |
|
|
|
$ |
10,891 |
|
|
Provision for loan and
lease losses charged to expense |
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
Loans charged off |
|
|
(386 |
) |
|
|
|
(357 |
) |
|
|
|
(1,734 |
) |
|
|
|
(307 |
) |
|
|
|
(707 |
) |
|
Loan loss
recoveries |
|
|
81 |
|
|
|
|
342 |
|
|
|
|
2,103 |
|
|
|
|
622 |
|
|
|
|
996 |
|
|
Ending balance |
|
$ |
11,544 |
|
|
|
$ |
11,849 |
|
|
|
$ |
11,864 |
|
|
|
$ |
11,495 |
|
|
|
$ |
11,180 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, |
|
At September 30, |
|
At June 30, |
|
At March 31, |
|
At December 31, |
|
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
Nonaccrual loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
2,749 |
|
|
|
$ |
1,710 |
|
|
|
$ |
2,149 |
|
|
|
$ |
2,563 |
|
|
|
$ |
1,994 |
|
|
Real estate -
commercial non-owner occupied |
|
|
1,196 |
|
|
|
|
1,196 |
|
|
|
|
1,197 |
|
|
|
|
1,197 |
|
|
|
|
5,488 |
|
|
Real estate -
commercial owner occupied |
|
|
784 |
|
|
|
|
800 |
|
|
|
|
816 |
|
|
|
|
1,190 |
|
|
|
|
1,071 |
|
|
Real estate -
residential - ITIN |
|
|
3,576 |
|
|
|
|
3,392 |
|
|
|
|
3,664 |
|
|
|
|
3,705 |
|
|
|
|
3,649 |
|
|
Real estate -
residential - 1-4 family mortgage |
|
|
1,914 |
|
|
|
|
1,798 |
|
|
|
|
1,824 |
|
|
|
|
1,742 |
|
|
|
|
1,775 |
|
|
Real estate -
residential - equity lines |
|
|
917 |
|
|
|
|
942 |
|
|
|
|
995 |
|
|
|
|
1,270 |
|
|
|
|
— |
|
|
Consumer and other |
|
|
250 |
|
|
|
|
252 |
|
|
|
|
266 |
|
|
|
|
31 |
|
|
|
|
32 |
|
|
Total nonaccrual
loans |
|
|
11,386 |
|
|
|
|
10,090 |
|
|
|
|
10,911 |
|
|
|
|
11,698 |
|
|
|
|
14,009 |
|
|
Accruing troubled debt
restructured loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
776 |
|
|
|
|
726 |
|
|
|
|
760 |
|
|
|
|
40 |
|
|
|
|
49 |
|
|
Real estate -
commercial non-owner occupied |
|
|
808 |
|
|
|
|
811 |
|
|
|
|
816 |
|
|
|
|
821 |
|
|
|
|
824 |
|
|
Real estate -
residential - ITIN |
|
|
5,033 |
|
|
|
|
5,280 |
|
|
|
|
5,336 |
|
|
|
|
5,502 |
|
|
|
|
5,458 |
|
|
Real estate -
residential - equity lines |
|
|
454 |
|
|
|
|
543 |
|
|
|
|
548 |
|
|
|
|
553 |
|
|
|
|
558 |
|
|
Total accruing troubled
debt restructured loans |
|
|
7,071 |
|
|
|
|
7,360 |
|
|
|
|
7,460 |
|
|
|
|
6,916 |
|
|
|
|
6,889 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All other accruing
impaired loans |
|
|
337 |
|
|
|
|
483 |
|
|
|
|
550 |
|
|
|
|
488 |
|
|
|
|
492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired
loans |
|
$ |
18,794 |
|
|
|
$ |
17,933 |
|
|
|
$ |
18,921 |
|
|
|
$ |
19,102 |
|
|
|
$ |
21,390 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans outstanding
at period end |
|
$ |
804,211 |
|
|
|
$ |
779,019 |
|
|
|
$ |
754,140 |
|
|
|
$ |
724,243 |
|
|
|
$ |
716,639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan and lease losses as a percent of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans |
|
|
1.44 |
|
% |
|
|
1.52 |
|
% |
|
|
1.57 |
|
% |
|
|
1.59 |
|
% |
|
|
1.56 |
|
% |
Nonaccrual loans |
|
|
101.39 |
|
% |
|
|
117.43 |
|
% |
|
|
108.73 |
|
% |
|
|
98.26 |
|
% |
|
|
79.81 |
|
% |
Impaired loans |
|
|
61.42 |
|
% |
|
|
66.07 |
|
% |
|
|
62.70 |
|
% |
|
|
60.18 |
|
% |
|
|
52.27 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans to
gross loans |
|
|
1.42 |
|
% |
|
|
1.30 |
|
% |
|
|
1.45 |
|
% |
|
|
1.62 |
|
% |
|
|
1.95 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We realized net loan charge offs of $305 thousand in the current
quarter compared with net loan loss charge offs of $15 thousand in
the prior quarter and net loan recoveries of $289 thousand for the
same period a year ago. Charge offs during the fourth quarter of
2016 of $386 thousand were primarily associated with purchased
consumer loans, offset by recoveries totaling $81 thousand.
We continue to monitor credit quality, and adjust the ALLL to
ensure that the ALLL is maintained at a level that is adequate to
cover estimated credit losses in the loan and lease portfolio. We
made no provision for loan and lease losses during this quarter or
the previous seven consecutive quarters. Our ALLL as a percentage
of gross loans was 1.44% as of December 31, 2016 compared to 1.56%
as of December 31, 2015 and 1.52% as of September 30, 2016. Based
on the Bank’s ALLL methodology, which uses criteria such as risk
weighting and historical loss rates, and given the ongoing
improvements in asset quality, management believes the Company’s
ALLL is adequate at December 31, 2016. There is, however, no
assurance that future loan and lease losses will not exceed the
levels provided for in the ALLL and could possibly result in future
charges to the provision for loan and lease losses.
At December 31, 2016, the recorded investment in loans
classified as impaired totaled $18.8 million, with a corresponding
valuation allowance of $1.5 million compared to impaired loans of
$21.4 million with a corresponding valuation allowance of $832
thousand at December 31, 2015 and impaired loans of $17.9 million,
with a corresponding valuation allowance of $925 thousand at
September 30, 2016. The increase in loans classified as impaired
and the corresponding valuation allowance compared to the prior
quarter is due to two restructured loans for one commercial
relationship. The valuation allowance on impaired loans represents
the impairment reserves on performing restructured loans, other
accruing loans, and nonaccrual loans.
TABLE 9 |
PERIOD END TROUBLED DEBT RESTRUCTURINGS -
UNAUDITED |
(amounts in thousands) |
|
|
At December 31, |
|
At September 30, |
|
At June 30, |
|
At March 31, |
|
At December 31, |
|
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
Nonaccrual |
|
$ |
4,995 |
|
|
$ |
3,795 |
|
|
$ |
3,785 |
|
|
$ |
4,516 |
|
|
$ |
9,015 |
|
Accruing |
|
|
7,071 |
|
|
|
7,360 |
|
|
|
7,460 |
|
|
|
6,916 |
|
|
|
6,889 |
|
Total troubled debt
restructurings |
|
$ |
12,066 |
|
|
$ |
11,155 |
|
|
$ |
11,245 |
|
|
$ |
11,432 |
|
|
$ |
15,904 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of total
gross loans |
|
|
1.50 |
% |
|
|
1.43 |
% |
|
|
1.49 |
% |
|
|
1.58 |
% |
|
|
2.22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans are reported as a troubled debt restructuring when we
grant a concession(s) to a borrower experiencing financial
difficulties that it would not otherwise consider. Examples of such
concessions include a reduction in the loan rate, forgiveness of
principal or accrued interest, extending the maturity date(s)
significantly, or providing a lower interest rate than would be
normally available for a transaction of similar risk. As a result
of these concessions, restructured loans are impaired as we will
not collect all amounts due, either principal or interest, in
accordance with the terms of the original loan agreement.
Impairment reserves on non-collateral dependent restructured loans
are measured by calculating the present value of expected future
cash flows of the restructured loans, discounted at the effective
interest rate of the original loan agreement. These impairment
reserves are recognized as a specific component to be provided for
in the ALLL.
During the three months ended December 31, 2016, the Company
restructured three loans; two to grant a maturity modification and
the other to grant a maturity and rate modification. The loans were
classified as troubled debt restructurings and two were placed on
nonaccrual status. As of December 31, 2016, we had 121 restructured
loans that qualified as troubled debt restructurings, of which 112
were performing according to their restructured terms.
TABLE 10 |
NONPERFORMING ASSETS - UNAUDITED |
(amounts in thousands) |
|
|
At December 31, |
|
At September 30, |
|
At June 30, |
|
At March 31, |
|
At December 31, |
|
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
Total nonaccrual
loans |
|
$ |
11,386 |
|
|
$ |
10,090 |
|
|
$ |
10,911 |
|
|
$ |
11,698 |
|
|
$ |
14,009 |
|
90 days past due and
still accruing |
|
|
— |
|
|
|
— |
|
|
|
10 |
|
|
|
— |
|
|
|
88 |
|
Total nonperforming
loans |
|
|
11,386 |
|
|
|
10,090 |
|
|
|
10,921 |
|
|
|
11,698 |
|
|
|
14,097 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other real estate
owned |
|
|
759 |
|
|
|
793 |
|
|
|
765 |
|
|
|
1,011 |
|
|
|
1,423 |
|
Total nonperforming
assets |
|
$ |
12,145 |
|
|
$ |
10,883 |
|
|
$ |
11,686 |
|
|
$ |
12,709 |
|
|
$ |
15,520 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to
gross loans |
|
|
1.42 |
% |
|
|
1.30 |
% |
|
|
1.45 |
% |
|
|
1.62 |
% |
|
|
1.97 |
% |
Nonperforming assets to
total assets |
|
|
1.06 |
% |
|
|
0.98 |
% |
|
|
1.09 |
% |
|
|
1.18 |
% |
|
|
1.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The increase in nonaccrual loans during the fourth quarter of
2016 was associated with one commercial relationship.
At December 31, 2016, December 31, 2015 and September 30, 2016,
the recorded investment in OREO was $759 thousand, $1.4 million and
$793 thousand, respectively. The December 31, 2016 OREO balance
consists of five properties, of which two are 1-4 family
residential real estate properties in the amount of $66 thousand,
two are nonfarm nonresidential properties in the amount of $581
thousand and one is an undeveloped commercial property in the
amount of $112 thousand.
TABLE 11 |
UNAUDITED CONSOLIDATED |
BALANCE SHEET |
(amounts in thousands, except per share
data) |
|
|
At December 31, |
|
At December 31, |
|
Change |
|
At September 30, |
|
|
2016 |
|
|
2015 |
|
|
$ |
|
% |
|
2016 |
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
|
$ |
16,419 |
|
|
$ |
9,730 |
|
|
$ |
6,689 |
|
|
69 |
|
% |
|
$ |
19,699 |
|
Interest-bearing
deposits in other banks |
|
|
51,988 |
|
|
|
41,462 |
|
|
|
10,526 |
|
|
25 |
|
% |
|
|
65,431 |
|
Total
cash and cash equivalents |
|
|
68,407 |
|
|
|
51,192 |
|
|
|
17,215 |
|
|
34 |
|
% |
|
|
85,130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
available-for-sale, at fair value |
|
|
175,174 |
|
|
|
159,030 |
|
|
|
16,144 |
|
|
10 |
|
% |
|
|
156,440 |
|
Securities
held-to-maturity, at amortized cost |
|
|
31,187 |
|
|
|
35,899 |
|
|
|
(4,712 |
) |
|
(13 |
) |
% |
|
|
31,771 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of deferred
fees and costs |
|
|
805,535 |
|
|
|
717,509 |
|
|
|
88,026 |
|
|
12 |
|
% |
|
|
780,174 |
|
Allowance for loan and
lease losses |
|
|
(11,544 |
) |
|
|
(11,180 |
) |
|
|
(364 |
) |
|
3 |
|
% |
|
|
(11,849 |
) |
Net
loans |
|
|
793,991 |
|
|
|
706,329 |
|
|
|
87,662 |
|
|
12 |
|
% |
|
|
768,325 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises and equipment,
net |
|
|
16,226 |
|
|
|
11,072 |
|
|
|
5,154 |
|
|
47 |
|
% |
|
|
15,930 |
|
Other real estate
owned |
|
|
759 |
|
|
|
1,423 |
|
|
|
(664 |
) |
|
(47 |
) |
% |
|
|
793 |
|
Life insurance |
|
|
23,098 |
|
|
|
22,485 |
|
|
|
613 |
|
|
3 |
|
% |
|
|
22,946 |
|
Deferred taxes |
|
|
9,542 |
|
|
|
9,760 |
|
|
|
(218 |
) |
|
(2 |
) |
% |
|
|
8,171 |
|
Goodwill and core
deposit intangibles, net |
|
|
2,252 |
|
|
|
— |
|
|
|
2,252 |
|
|
100 |
|
% |
|
|
2,307 |
|
Other assets |
|
|
20,356 |
|
|
|
18,251 |
|
|
|
2,105 |
|
|
12 |
|
% |
|
|
19,205 |
|
Total assets |
|
$ |
1,140,992 |
|
|
$ |
1,015,441 |
|
|
$ |
125,551 |
|
|
12 |
|
% |
|
$ |
1,111,018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand - noninterest
bearing |
|
$ |
270,398 |
|
|
$ |
169,507 |
|
|
$ |
100,891 |
|
|
60 |
|
% |
|
$ |
254,435 |
|
Demand - interest
bearing |
|
|
405,569 |
|
|
|
315,658 |
|
|
|
89,911 |
|
|
28 |
|
% |
|
|
394,525 |
|
Savings |
|
|
113,309 |
|
|
|
94,503 |
|
|
|
18,806 |
|
|
20 |
|
% |
|
|
110,201 |
|
Certificates of
deposit |
|
|
215,390 |
|
|
|
224,067 |
|
|
|
(8,677 |
) |
|
(4 |
) |
% |
|
|
216,332 |
|
Total
deposits |
|
|
1,004,666 |
|
|
|
803,735 |
|
|
|
200,931 |
|
|
25 |
|
% |
|
|
975,493 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term debt |
|
|
18,917 |
|
|
|
94,917 |
|
|
|
(76,000 |
) |
|
(80 |
) |
% |
|
|
19,317 |
|
Unamortized debt
issuance costs |
|
|
(184 |
) |
|
|
(223 |
) |
|
|
39 |
|
|
(17 |
) |
% |
|
|
(193 |
) |
Net term
debt |
|
|
18,733 |
|
|
|
94,694 |
|
|
|
(75,961 |
) |
|
(80 |
) |
% |
|
|
19,124 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Junior subordinated
debentures |
|
|
10,310 |
|
|
|
10,310 |
|
|
|
— |
|
|
0 |
|
% |
|
|
10,310 |
|
Other liabilities |
|
|
13,177 |
|
|
|
16,180 |
|
|
|
(3,003 |
) |
|
(19 |
) |
% |
|
|
11,798 |
|
Total
liabilities |
|
|
1,046,886 |
|
|
|
924,919 |
|
|
|
121,967 |
|
|
13 |
|
% |
|
|
1,016,725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
24,547 |
|
|
|
24,214 |
|
|
|
333 |
|
|
1 |
|
% |
|
|
24,483 |
|
Retained earnings |
|
|
70,218 |
|
|
|
66,562 |
|
|
|
3,656 |
|
|
5 |
|
% |
|
|
68,321 |
|
Accumulated other
comprehensive (loss) income, net of tax |
|
|
(659 |
) |
|
|
(254 |
) |
|
|
(405 |
) |
|
159 |
|
% |
|
|
1,489 |
|
Total
shareholders' equity |
|
|
94,106 |
|
|
|
90,522 |
|
|
|
3,584 |
|
|
4 |
|
% |
|
|
94,293 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity |
|
$ |
1,140,992 |
|
|
$ |
1,015,441 |
|
|
$ |
125,551 |
|
|
12 |
|
% |
|
$ |
1,111,018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest earning
assets |
|
$ |
1,065,228 |
|
|
$ |
952,302 |
|
|
$ |
112,926 |
|
|
12 |
|
% |
|
$ |
1,031,527 |
|
Shares outstanding |
|
|
13,440 |
|
|
|
13,385 |
|
|
|
|
|
|
|
|
|
13,439 |
|
Tangible book value per
share |
|
$ |
6.83 |
|
|
$ |
6.76 |
|
|
|
|
|
|
|
|
$ |
6.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 12 |
UNAUDITED |
INCOME STATEMENT |
(amounts in thousands, except per share
data) |
|
|
For The Three Months Ended |
|
For The Twelve Months Ended |
|
|
December 31, |
|
Change |
|
September 30, |
|
December 31, |
|
|
2016 |
|
2015 |
|
$ |
|
% |
|
2016 |
|
2016 |
|
|
2015 |
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
and fees on loans |
|
$ |
9,181 |
|
$ |
8,299 |
|
$ |
882 |
|
|
11 |
|
% |
|
$ |
9,007 |
|
$ |
35,435 |
|
|
$ |
32,871 |
Interest
on securities |
|
|
705 |
|
|
795 |
|
|
(90 |
) |
|
(11 |
) |
% |
|
|
689 |
|
|
2,986 |
|
|
|
3,284 |
Interest
on tax-exempt securities |
|
|
522 |
|
|
599 |
|
|
(77 |
) |
|
(13 |
) |
% |
|
|
552 |
|
|
2,256 |
|
|
|
2,392 |
Interest
on deposits in other banks |
|
|
110 |
|
|
39 |
|
|
71 |
|
|
182 |
|
% |
|
|
82 |
|
|
332 |
|
|
|
206 |
Total interest
income |
|
|
10,518 |
|
|
9,732 |
|
|
786 |
|
|
8 |
|
% |
|
|
10,330 |
|
|
41,009 |
|
|
|
38,753 |
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
on demand deposits |
|
|
135 |
|
|
121 |
|
|
14 |
|
|
12 |
|
% |
|
|
136 |
|
|
523 |
|
|
|
460 |
Interest
on savings deposits |
|
|
45 |
|
|
51 |
|
|
(6 |
) |
|
(12 |
) |
% |
|
|
43 |
|
|
174 |
|
|
|
213 |
Interest
on certificates of deposit |
|
|
543 |
|
|
585 |
|
|
(42 |
) |
|
(7 |
) |
% |
|
|
524 |
|
|
2,179 |
|
|
|
2,356 |
Interest
on term debt |
|
|
298 |
|
|
572 |
|
|
(274 |
) |
|
(48 |
) |
% |
|
|
292 |
|
|
1,667 |
|
|
|
1,759 |
Interest
on other borrowings |
|
|
63 |
|
|
52 |
|
|
11 |
|
|
21 |
|
% |
|
|
59 |
|
|
235 |
|
|
|
195 |
Total interest
expense |
|
|
1,084 |
|
|
1,381 |
|
|
(297 |
) |
|
(22 |
) |
% |
|
|
1,054 |
|
|
4,778 |
|
|
|
4,983 |
Net interest
income |
|
|
9,434 |
|
|
8,351 |
|
|
1,083 |
|
|
13 |
|
% |
|
|
9,276 |
|
|
36,231 |
|
|
|
33,770 |
Provision for loan and
lease losses |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
% |
|
|
— |
|
|
— |
|
|
|
— |
Net
interest income after provision for loan and lease losses |
|
|
9,434 |
|
|
8,351 |
|
|
1,083 |
|
|
13 |
|
% |
|
|
9,276 |
|
|
36,231 |
|
|
|
33,770 |
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
charges on deposit accounts |
|
|
120 |
|
|
51 |
|
|
69 |
|
|
135 |
|
% |
|
|
133 |
|
|
413 |
|
|
|
204 |
Payroll
and benefit processing fees |
|
|
161 |
|
|
139 |
|
|
22 |
|
|
16 |
|
% |
|
|
133 |
|
|
593 |
|
|
|
555 |
Earnings
on cash surrender value - life insurance |
|
|
152 |
|
|
159 |
|
|
(7 |
) |
|
(4 |
) |
% |
|
|
152 |
|
|
613 |
|
|
|
641 |
Gain on
investment securities, net |
|
|
52 |
|
|
30 |
|
|
22 |
|
|
73 |
|
% |
|
|
70 |
|
|
244 |
|
|
|
443 |
Impairment losses on investment securities |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
% |
|
|
— |
|
|
(546 |
) |
|
|
— |
ATM and
point of sale |
|
|
281 |
|
|
104 |
|
|
177 |
|
|
170 |
|
% |
|
|
287 |
|
|
995 |
|
|
|
383 |
Federal
Home Loan Bank of San Francisco dividends |
|
|
353 |
|
|
99 |
|
|
254 |
|
|
257 |
|
% |
|
|
102 |
|
|
644 |
|
|
|
630 |
Other
income |
|
|
131 |
|
|
58 |
|
|
73 |
|
|
126 |
|
% |
|
|
82 |
|
|
639 |
|
|
|
327 |
Total noninterest
income |
|
|
1,250 |
|
|
640 |
|
|
610 |
|
|
95 |
|
% |
|
|
959 |
|
|
3,595 |
|
|
|
3,183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 12 - CONTINUED |
UNAUDITED |
INCOME STATEMENT |
(amounts in thousands, except per share
data) |
|
|
For The Three Months Ended |
|
For The Twelve Months Ended |
|
|
December 31, |
|
Change |
|
September 30, |
|
December 31, |
|
|
2016 |
|
2015 |
|
$ |
|
% |
|
2016 |
|
2016 |
|
2015 |
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and related benefits |
|
|
4,237 |
|
|
3,610 |
|
|
627 |
|
|
17 |
|
% |
|
|
3,873 |
|
|
16,425 |
|
|
14,303 |
Occupancy
and equipment |
|
|
1,022 |
|
|
737 |
|
|
285 |
|
|
39 |
|
% |
|
|
1,071 |
|
|
3,869 |
|
|
2,894 |
Federal
Deposit Insurance Corporation insurance premium |
|
|
102 |
|
|
173 |
|
|
(71 |
) |
|
(41 |
) |
% |
|
|
176 |
|
|
615 |
|
|
717 |
Data
processing fees |
|
|
533 |
|
|
280 |
|
|
253 |
|
|
90 |
|
% |
|
|
464 |
|
|
1,675 |
|
|
1,016 |
Professional service fees |
|
|
481 |
|
|
461 |
|
|
20 |
|
|
4 |
|
% |
|
|
303 |
|
|
1,690 |
|
|
1,628 |
Telecommunications |
|
|
206 |
|
|
114 |
|
|
92 |
|
|
81 |
|
% |
|
|
199 |
|
|
751 |
|
|
449 |
Branch
acquisition costs |
|
|
— |
|
|
347 |
|
|
(347 |
) |
|
(100 |
) |
% |
|
|
— |
|
|
580 |
|
|
347 |
Loss on
cancellation of interest rate swap |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
% |
|
|
— |
|
|
2,325 |
|
|
— |
Other
expenses |
|
|
1,234 |
|
|
894 |
|
|
340 |
|
|
38 |
|
% |
|
|
1,039 |
|
|
4,679 |
|
|
3,551 |
Total noninterest
expense |
|
|
7,815 |
|
|
6,616 |
|
|
1,199 |
|
|
18 |
|
% |
|
|
7,125 |
|
|
32,609 |
|
|
24,905 |
Income before provision
for income taxes |
|
|
2,869 |
|
|
2,375 |
|
|
494 |
|
|
21 |
|
% |
|
|
3,110 |
|
|
7,217 |
|
|
12,048 |
Deferred tax asset
write-off |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
% |
|
|
— |
|
|
363 |
|
|
— |
Provision for income
taxes |
|
|
572 |
|
|
505 |
|
|
67 |
|
|
13 |
|
% |
|
|
744 |
|
|
1,595 |
|
|
3,462 |
Net income |
|
$ |
2,297 |
|
$ |
1,870 |
|
$ |
427 |
|
|
23 |
|
% |
|
$ |
2,366 |
|
$ |
5,259 |
|
$ |
8,586 |
Less: Preferred stock
extinguishment costs |
|
|
— |
|
|
102 |
|
|
(102 |
) |
|
(100 |
) |
% |
|
|
— |
|
|
— |
|
|
102 |
Less: Preferred
dividends |
|
|
— |
|
|
39 |
|
|
(39 |
) |
|
(100 |
) |
% |
|
|
— |
|
|
— |
|
|
189 |
Income available to
common shareholders |
|
$ |
2,297 |
|
$ |
1,729 |
|
$ |
568 |
|
|
33 |
|
% |
|
$ |
2,366 |
|
$ |
5,259 |
|
$ |
8,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share |
|
$ |
0.17 |
|
$ |
0.13 |
|
$ |
0.04 |
|
|
31 |
|
% |
|
$ |
0.18 |
|
$ |
0.39 |
|
$ |
0.62 |
Average basic
shares |
|
|
13,370 |
|
|
13,341 |
|
|
29 |
|
|
— |
|
% |
|
|
13,369 |
|
|
13,367 |
|
|
13,331 |
Diluted earnings per
share |
|
$ |
0.17 |
|
$ |
0.13 |
|
$ |
0.04 |
|
|
31 |
|
% |
|
$ |
0.18 |
|
$ |
0.39 |
|
$ |
0.62 |
Average diluted
shares |
|
|
13,476 |
|
|
13,395 |
|
|
81 |
|
|
1 |
|
% |
|
|
13,439 |
|
|
13,425 |
|
|
13,365 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 13 |
UNAUDITED CONDENSED CONSOLIDATED |
ANNUAL AVERAGE BALANCE SHEETS |
(amounts in thousands) |
|
|
For The Twelve Months Ended |
|
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
2016 |
|
2015 |
|
2014 |
|
2013 |
Earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
752,938 |
|
$ |
699,227 |
|
$ |
625,166 |
|
$ |
612,780 |
Taxable securities |
|
|
120,884 |
|
|
120,897 |
|
|
147,916 |
|
|
157,486 |
Tax exempt
securities |
|
|
75,303 |
|
|
77,089 |
|
|
83,973 |
|
|
92,854 |
Interest-bearing
deposits in other banks |
|
|
58,668 |
|
|
30,323 |
|
|
56,465 |
|
|
43,342 |
Average earning
assets |
|
|
1,007,793 |
|
|
927,536 |
|
|
913,520 |
|
|
906,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
|
|
15,831 |
|
|
11,220 |
|
|
11,246 |
|
|
10,624 |
Premises and equipment,
net |
|
|
15,078 |
|
|
11,552 |
|
|
12,105 |
|
|
10,337 |
Other assets |
|
|
41,048 |
|
|
42,423 |
|
|
36,936 |
|
|
26,431 |
Average total
assets |
|
$ |
1,079,750 |
|
$ |
992,731 |
|
$ |
973,807 |
|
$ |
953,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
Demand - noninterest
bearing |
|
$ |
226,368 |
|
$ |
156,578 |
|
$ |
139,792 |
|
$ |
122,011 |
Demand - interest
bearing |
|
|
374,170 |
|
|
283,105 |
|
|
272,383 |
|
|
244,125 |
Savings |
|
|
104,771 |
|
|
92,659 |
|
|
91,108 |
|
|
92,502 |
Certificates of
deposit |
|
|
221,074 |
|
|
238,626 |
|
|
259,445 |
|
|
248,350 |
Total deposits |
|
|
926,383 |
|
|
770,968 |
|
|
762,728 |
|
|
706,988 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase
agreements |
|
|
— |
|
|
— |
|
|
— |
|
|
5,780 |
Term debt, net |
|
|
37,286 |
|
|
88,874 |
|
|
77,534 |
|
|
107,603 |
Junior subordinated
debentures |
|
|
10,310 |
|
|
10,310 |
|
|
15,239 |
|
|
15,465 |
Other liabilities |
|
|
13,217 |
|
|
16,588 |
|
|
15,934 |
|
|
11,825 |
Average total
liabilities |
|
|
987,196 |
|
|
886,740 |
|
|
871,435 |
|
|
847,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity |
|
|
92,554 |
|
|
105,991 |
|
|
102,372 |
|
|
106,193 |
Average liabilities
& shareholders' equity |
|
$ |
1,079,750 |
|
$ |
992,731 |
|
$ |
973,807 |
|
$ |
953,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 14 |
UNAUDITED CONDENSED CONSOLIDATED |
QUARTERLY AVERAGE BALANCE SHEETS |
(amounts in thousands) |
|
|
For The Three Months Ended |
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
Earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
778,458 |
|
$ |
769,354 |
|
$ |
742,684 |
|
$ |
720,795 |
|
$ |
714,494 |
Taxable securities |
|
|
124,881 |
|
|
114,578 |
|
|
124,183 |
|
|
119,917 |
|
|
111,098 |
Tax exempt
securities |
|
|
72,288 |
|
|
73,952 |
|
|
77,168 |
|
|
77,852 |
|
|
78,081 |
Interest-bearing
deposits in other banks |
|
|
75,760 |
|
|
61,346 |
|
|
46,097 |
|
|
51,254 |
|
|
37,158 |
Average earning
assets |
|
|
1,051,387 |
|
|
1,019,230 |
|
|
990,132 |
|
|
969,818 |
|
|
940,831 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
|
|
16,953 |
|
|
17,018 |
|
|
17,028 |
|
|
12,301 |
|
|
12,372 |
Premises and equipment,
net |
|
|
16,331 |
|
|
15,941 |
|
|
15,632 |
|
|
12,384 |
|
|
11,001 |
Other assets |
|
|
41,363 |
|
|
41,729 |
|
|
41,394 |
|
|
39,700 |
|
|
41,666 |
Average total
assets |
|
$ |
1,126,034 |
|
$ |
1,093,918 |
|
$ |
1,064,186 |
|
$ |
1,034,203 |
|
$ |
1,005,870 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand - noninterest
bearing |
|
$ |
261,600 |
|
$ |
240,418 |
|
$ |
220,377 |
|
$ |
182,539 |
|
$ |
171,449 |
Demand - interest
bearing |
|
|
398,749 |
|
|
390,895 |
|
|
382,811 |
|
|
323,771 |
|
|
302,862 |
Savings |
|
|
111,755 |
|
|
107,210 |
|
|
103,990 |
|
|
96,027 |
|
|
92,939 |
Certificates of
deposit |
|
|
217,463 |
|
|
221,078 |
|
|
223,958 |
|
|
221,836 |
|
|
226,924 |
Total deposits |
|
|
989,567 |
|
|
959,601 |
|
|
931,136 |
|
|
824,173 |
|
|
794,174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term debt |
|
|
18,975 |
|
|
19,610 |
|
|
19,510 |
|
|
91,444 |
|
|
79,772 |
Junior subordinated
debentures |
|
|
10,310 |
|
|
10,310 |
|
|
10,310 |
|
|
10,310 |
|
|
10,310 |
Other liabilities |
|
|
12,856 |
|
|
11,159 |
|
|
11,913 |
|
|
16,969 |
|
|
16,197 |
Average total
liabilities |
|
|
1,031,708 |
|
|
1,000,680 |
|
|
972,869 |
|
|
942,896 |
|
|
900,453 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity |
|
|
94,326 |
|
|
93,238 |
|
|
91,317 |
|
|
91,307 |
|
|
105,417 |
Average liabilities
& shareholders' equity |
|
$ |
1,126,034 |
|
$ |
1,093,918 |
|
$ |
1,064,186 |
|
$ |
1,034,203 |
|
$ |
1,005,870 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
About Bank of Commerce Holdings
Bank of Commerce Holdings is a bank holding company
headquartered in Redding, California and is the parent company for
Redding Bank of Commerce which operates under two separate names
(Redding Bank of Commerce and Sacramento Bank of Commerce, a
division of Redding Bank of Commerce). The Bank is an FDIC-insured
California banking corporation providing banking and financial
services through nine offices located in Northern California. The
Bank opened on October 22, 1982. The Company’s common stock is
listed on the NASDAQ Global Market and trades under the symbol
“BOCH”.
Investment firms making a market in BOCH stock
are:
Raymond
James Financial |
|
|
|
|
|
John T.
Cavender |
|
|
Stifel Nicolaus |
|
One
Embarcadero Center |
|
|
Perry Wright |
|
Suite
650 |
|
|
1255 East Street, Suite 100 |
San
Francisco, California 94111 |
|
|
Redding, CA 96001 |
|
(415)
616-8935 |
|
|
(530) 244-7199 |
|
|
|
Contact Information:
Randall S. Eslick, President and Chief Executive Officer
Telephone Direct (530) 722-3900
Samuel D. Jimenez, Executive Vice President and Chief Operating Officer
Telephone Direct (530) 722-3952
James A. Sundquist, Executive Vice President and Chief Financial Officer
Telephone Direct (530) 722-3908
Andrea Schneck, Vice President and Senior Administrative Officer
Telephone Direct (530) 722-3959
Bank of Commerce (NASDAQ:BOCH)
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