Southern States Bancshares, Inc. (NASDAQ: SSBK) (“Southern States”
or the “Company”), the holding company for Southern States Bank, an
Alabama state-chartered commercial bank (the “Bank”), today
reported net income of $8.8 million, or $0.98 diluted earnings per
share, for the second quarter of 2023. This compares to net income
of $7.7 million, or $0.85 diluted earnings per share, for the first
quarter of 2023, and net income of $5.2 million, or $0.59 diluted
earnings per share, for the second quarter of 2022. The Company
reported core net income of $7.1 million, or $0.79 diluted core
earnings per share, for the second quarter of 2023. This compares
to core net income of $7.3 million, or $0.80 diluted core earnings
per share, for the first quarter of 2023, and core net income of
$5.3 million, or $0.59 diluted core earnings per share, for the
second quarter of 2022 (see “Reconciliation of Non-GAAP Financial
Measures”).
CEO Commentary |
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Mark Chambers, Chief Executive Officer and President of Southern
States, said, “Our team continued to identify attractive lending
opportunities and build deposits across our footprint, prudently
growing and delivering strong earnings while maintaining our
unwavering focus on risk management and excellent credit
quality.’’ |
“Our total loans grew 4.3% from the prior quarter and 20.0% from
the second quarter of 2022. We more than funded our loan growth
with an increase in our core deposits as we continued to expand our
customer base. Meanwhile, our non-performing loans as a percentage
of the overall portfolio totaled just 0.06%, down from both the
first quarter and a year earlier. We continue to build upon the
momentum we generated over the past several years across some of
the most economically resilient markets in the South.’’ |
“While our funding costs rose during the quarter alongside higher
interest rates, impacting our net interest margin, we have robust
liquidity and capital levels that give Southern States the
financial strength to drive ongoing growth. We are well-positioned
to cultivate new business through superior customer service, giving
gives us confidence in our ability to deliver long-term value for
our shareholders.” |
Net
Interest Income and Net Interest Margin |
|
|
|
|
|
|
|
Three Months Ended |
|
% Change June 30, 2023
vs. |
June 30,2023 |
|
March 31,2023 |
|
June 30,2022 |
|
March 31,2023 |
|
June 30,2022 |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average interest-earning assets |
$ |
2,091,998 |
|
|
$ |
1,947,957 |
|
|
$ |
1,710,022 |
|
|
7.4 |
% |
|
22.3 |
% |
Net interest income |
$ |
19,432 |
|
|
$ |
19,546 |
|
|
$ |
16,365 |
|
|
(0.6) |
% |
|
18.7 |
% |
Net interest margin |
|
3.73 |
% |
|
|
4.07 |
% |
|
|
3.84 |
% |
|
(34) |
bps |
|
(11) |
bps |
|
|
|
|
|
|
|
|
|
|
Net interest income for the second quarter of
2023 was $19.4 million, a decrease of 0.6% from $19.5 million for
the first quarter of 2023. The decrease was primarily driven by the
impact of higher interest rates paid on deposits, which more than
offset an increase in the yield on interest-earning assets.
Relative to the second quarter of 2022, net
interest income increased $3.1 million, or 18.7%. The increase was
partially the result of improvement in the yield on
interest-earning assets, which outpaced the rise in costs of
deposits and other borrowings. In addition, we benefited from the
significant organic growth in interest-earning assets year over
year.
Net interest margin for the second quarter of
2023 was 3.73%, compared to 4.07% for the first quarter of 2023.
The decrease was primarily due to higher interest rates paid on
interest-bearing liabilities, which outpaced the increase in yield
on interest-earning assets.
Relative to the second quarter of 2022, net
interest margin decreased from 3.84%. The decrease was primarily
due to a rapid increase in interest rates, which accelerated cost
on interest-bearing liabilities at a faster pace than the yield
received on interest-earning assets. A shift from
noninterest-bearing deposits to interest-bearing deposits also had
a negative impact on net interest margin.
Noninterest
Income |
|
|
|
|
|
|
|
|
Three Months Ended |
|
% Change June 30, 2023
vs. |
June 30,2023 |
|
March 31,2023 |
|
June 30,2022 |
|
March 31,2023 |
|
June 30,2022 |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit
accounts |
$ |
456 |
|
|
$ |
450 |
|
|
$ |
480 |
|
|
1.3 |
% |
|
(5.0) |
% |
Swap fees |
|
173 |
|
|
|
(4 |
) |
|
|
21 |
|
|
(4425.0 |
% |
|
723.8 |
% |
SBA/USDA fees |
|
66 |
|
|
|
134 |
|
|
|
93 |
|
|
(50.7) |
% |
|
(29.0) |
% |
Mortgage origination fees |
|
188 |
|
|
|
100 |
|
|
|
213 |
|
|
88.0 |
% |
|
(11.7) |
% |
Net gain (loss) on
securities |
|
(45 |
) |
|
|
514 |
|
|
|
(42 |
) |
|
(108.8) |
% |
|
7.1 |
% |
Other operating income |
|
6,024 |
|
|
|
592 |
|
|
|
639 |
|
|
917.6 |
% |
|
842.7 |
% |
Total noninterest income |
$ |
6,862 |
|
|
$ |
1,786 |
|
|
$ |
1,404 |
|
|
284.2 |
% |
|
388.7 |
% |
|
|
|
|
|
|
|
|
|
|
Noninterest income for the second quarter of
2023 was $6.9 million, an increase of 284.2% from $1.8 million for
the first quarter of 2023. The second quarter included $5.1 million
in employee retention credits (“ERC”) and interest from the Federal
government as well as $264,000 in fees related to ERC from a third
party.
Relative to the second quarter of 2022,
noninterest income increased 388.7% from $1.4 million. The second
quarter of 2023 included $5.1 million in ERC and interest from the
Federal government as well as $264,000 in fees related to ERC from
a third party.
Noninterest
Expense |
|
|
|
|
Three Months Ended |
|
% Change June 30, 2023
vs. |
June 30,2023 |
|
March 31,2023 |
|
June 30,2022 |
|
March 31,2023 |
|
June 30,2022 |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
$ |
7,863 |
|
$ |
6,311 |
|
$ |
5,982 |
|
24.6 |
% |
|
31.4 |
% |
Equipment and occupancy
expenses |
|
694 |
|
|
683 |
|
|
719 |
|
1.6 |
% |
|
(3.5) |
% |
Data processing fees |
|
646 |
|
|
593 |
|
|
570 |
|
8.9 |
% |
|
13.3 |
% |
Regulatory assessments |
|
180 |
|
|
342 |
|
|
262 |
|
(47.4) |
% |
|
(31.3) |
% |
Other operating expenses |
|
4,049 |
|
|
2,229 |
|
|
2,119 |
|
81.7 |
% |
|
91.1 |
% |
Total noninterest expenses |
$ |
13,432 |
|
$ |
10,158 |
|
$ |
9,652 |
|
32.2 |
% |
|
39.2 |
% |
|
|
|
|
|
|
|
|
|
|
Noninterest expense for the second quarter of
2023 was $13.4 million, an increase of 32.2% from $10.2 million for
the first quarter of 2023. The increase was primarily attributable
to an increase in salaries and benefits, substantially as a result
of one-time retirement related expenses of our former CEO in May
2023 and professional fees paid to a third party during the second
quarter related to ERC.
Relative to the second quarter of 2022,
noninterest expense increased 39.2% from $9.7 million. The increase
was primarily attributable to an increase in salaries and benefits,
substantially as a result of one-time retirement related expenses
of our former CEO in May 2023 and professional fees paid to a third
party during the second quarter related to ERC.
Loans and
Credit Quality |
|
|
|
|
|
|
|
Three Months Ended |
|
% Change June 30, 2023
vs. |
June 30,2023 |
|
March 31,2023 |
|
June 30,2022 |
|
March 31,2023 |
|
June 30,2022 |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans |
|
1,722,278 |
|
|
|
1,650,929 |
|
|
|
1,435,089 |
|
|
4.3 |
% |
|
20.0 |
% |
Unearned income |
|
(5,766 |
) |
|
|
(5,614 |
) |
|
|
(4,884 |
) |
|
2.7 |
% |
|
18.1 |
% |
Loans, net of unearned income
(“Loans”) |
$ |
1,716,512 |
|
|
$ |
1,645,315 |
|
|
$ |
1,430,205 |
|
|
4.3 |
% |
|
20.0 |
% |
Average loans, net of unearned
(“Average loans”) |
$ |
1,676,816 |
|
|
$ |
1,609,564 |
|
|
$ |
1,359,320 |
|
|
4.2 |
% |
|
23.4 |
% |
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
(“NPL”) |
$ |
1,010 |
|
|
$ |
1,646 |
|
|
$ |
3,550 |
|
|
(38.6) |
% |
|
(71.5) |
% |
Provision for credit
losses |
$ |
1,557 |
|
|
$ |
1,181 |
|
|
$ |
1,304 |
|
|
31.8 |
% |
|
19.4 |
% |
Allowance for credit losses
(“ACL”) |
$ |
21,385 |
|
|
$ |
19,855 |
|
|
$ |
16,807 |
|
|
7.7 |
% |
|
27.2 |
% |
Net charge-offs
(recoveries) |
$ |
27 |
|
|
$ |
197 |
|
|
$ |
(11 |
) |
|
(86.3) |
% |
|
(345.5) |
% |
NPL to gross loans |
|
0.06 |
% |
|
|
0.10 |
% |
|
|
0.25 |
% |
|
|
|
|
Net charge-offs (recoveries)
to average loans(1) |
|
0.01 |
% |
|
|
0.05 |
% |
|
|
0.00 |
% |
|
|
|
|
ACL to loans |
|
1.25 |
% |
|
|
1.21 |
% |
|
|
1.18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Ratio is annualized. |
|
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Loans, net of unearned income, were $1.7 billion
at June 30, 2023, up $71.2 million from March 31, 2023
and up $286.3 million from June 30, 2022. The linked-quarter
and year-over-year increases in loans were primarily attributable
to new business growth across our footprint.
Nonperforming loans totaled $1.0 million, or
0.06% of gross loans, at June 30, 2023, compared with $1.6
million, or 0.10% of gross loans, at March 31, 2023, and $3.6
million, or 0.25% of gross loans, at June 30, 2022. The
$636,000 net decrease in nonperforming loans in the second quarter
of 2023 was primarily attributable to a commercial real estate loan
that was paid-off. The $2.5 million net decrease in nonperforming
loans from June 30, 2022, was primarily attributable to a
significant commercial real estate loan being moved back to
accruing status, two loans that were charged-off and one loan that
was paid-off.
The Company recorded a provision for credit
losses of $1.6 million for the second quarter of 2023, compared to
$1.2 million for the first quarter of 2023. The increase in
provision was primarily due to changes in our qualitative economic
factors and modest loan growth for the quarter.
Net charge-offs for the second quarter of 2023
were $27,000, or 0.01% of average loans on an annualized basis,
compared to net charge-offs of $197,000, or 0.05% of average loans
on an annualized basis, for the first quarter of 2023, and net
recoveries of $11,000, or 0.00% of average loans on an annualized
basis, for the second quarter of 2022.
The Company’s allowance for credit losses was
1.25% of total loans and 2117.33% of nonperforming loans at
June 30, 2023, compared with 1.21% of total loans and 1206.26%
of nonperforming loans at March 31, 2023. Allowance for credit
losses on unfunded commitments was $1.5 million at June 30,
2023.
Deposits |
|
|
|
|
|
|
|
|
Three Months Ended |
|
% Change June 30, 2023
vs. |
June 30,2023 |
|
March 31,2023 |
|
June 30,2022 |
|
March 31,2023 |
|
June 30,2022 |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits |
$ |
449,433 |
|
|
$ |
433,832 |
|
|
$ |
512,598 |
|
|
3.6 |
% |
|
(12.3) |
% |
Interest-bearing deposits |
|
1,474,478 |
|
|
|
1,355,659 |
|
|
|
1,132,348 |
|
|
8.8 |
% |
|
30.2 |
% |
Total deposits |
$ |
1,923,911 |
|
|
$ |
1,789,491 |
|
|
$ |
1,644,946 |
|
|
7.5 |
% |
|
17.0 |
% |
|
|
|
|
|
|
|
|
|
|
Uninsured deposits |
$ |
553,084 |
|
|
$ |
567,709 |
|
|
$ |
660,115 |
|
|
(2.6) |
% |
|
(16.2) |
% |
Uninsured deposits to total
deposits |
|
28.75 |
% |
|
|
31.72 |
% |
|
|
40.13 |
% |
|
|
|
|
Noninterest deposits to total
deposits |
|
23.36 |
% |
|
|
24.24 |
% |
|
|
31.16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits were $1.9 billion at
June 30, 2023, up from $1.8 billion at March 31, 2023 and
$1.6 billion at June 30, 2022. The $134.4 million increase in
total deposits in the second quarter was due to an increase of
$118.8 million in interest-bearing deposits and by a $15.6 million
increase in noninterest-bearing deposits. Included in the increase
was $49.1 million in brokered deposits.
Capital |
|
|
|
|
|
|
|
|
|
|
|
|
June 30,2023 |
|
March 31,2023 |
|
June 30,2022 |
Company |
|
Bank |
|
Company |
|
Bank |
|
Company |
|
Bank |
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital ratio to average assets |
8.70 |
% |
|
11.82 |
% |
|
8.89 |
% |
|
12.19 |
% |
|
8.78 |
% |
|
10.97 |
% |
Risk-based capital
ratios: |
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 (“CET1”) capital ratio |
9.11 |
% |
|
12.37 |
% |
|
9.00 |
% |
|
12.34 |
% |
|
8.92 |
% |
|
11.14 |
% |
Tier 1 capital ratio |
9.11 |
% |
|
12.37 |
% |
|
9.00 |
% |
|
12.34 |
% |
|
8.92 |
% |
|
11.14 |
% |
Total capital ratio |
14.42 |
% |
|
13.47 |
% |
|
14.41 |
% |
|
13.38 |
% |
|
12.58 |
% |
|
12.09 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2023, total stockholders’
equity was $197.2 million, up from $189.7 million at March 31,
2023. The increase of $7.6 million was substantially due to strong
earnings growth.
About Southern States Bancshares, Inc. |
Headquartered in Anniston, Alabama, Southern
States Bancshares, Inc. is a bank holding company that operates
primarily through its wholly-owned subsidiary, Southern States
Bank. The Bank is a full service community banking institution,
which offers an array of deposit, loan and other banking-related
products and services to businesses and individuals in its
communities. The Bank operates 13 branches in Alabama and Georgia
and two loan production offices in Atlanta.
Forward-Looking Statements |
This press release contains forward-looking
statements within the meaning of the federal securities laws, which
reflect our current expectations and beliefs with respect to, among
other things, future events and our financial performance. These
forward-looking statements are not historical facts, and are based
on current expectations, estimates and projections about our
industry, management’s beliefs and certain assumptions made by
management, many of which, by their nature, are inherently
uncertain and beyond our control. This may be especially true given
recent events and trends in the banking industry and the
inflationary environment. Although we believe that the expectations
reflected in such forward-looking statements are reasonable as of
the dates made, we cannot give any assurance that such expectations
will prove correct and actual results may prove to be materially
different from the results expressed or implied by the
forward-looking statements. Important factors that could cause
actual results to differ materially from those in the
forward-looking statements are set forth in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2022 under the
section entitled “Cautionary Note Regarding Forward-Looking
Statements” and “Risk Factors”. Accordingly, we caution you that
any such forward-looking statements are not guarantees of future
performance and are subject to risks, assumptions and uncertainties
that are difficult to predict.
These statements are often, but not always, made
through the use of words or phrases such as “may,” “can,” “should,”
“could,” “to be,” “predict,” “potential,” “believe,” “will likely
result,” “expect,” “continue,” “will,” “likely,” “anticipate,”
“seek,” “estimate,” “intend,” “plan,” “target,” “project,” “would”
and “outlook,” or the negative version of those words or other
similar words or phrases of a future or forward-looking nature.
Forward-looking statements appear in a number of places in this
press release and may include statements about business strategy
and prospects for growth, operations, ability to pay dividends,
competition, regulation and general economic conditions.
Contact Information |
|
|
|
|
Lynn Joyce |
|
|
|
Kevin Dobbs |
(205)
820-8065 |
|
|
|
(310) 622-8245 |
ljoyce@ssbank.bank |
|
|
|
ssbankir@finprofiles.com |
SELECT FINANCIAL DATA |
(Dollars in thousands, except share and per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
June 30,2023 |
|
March 31,2023 |
|
June 30,2022 |
|
June 30,2023 |
|
June 30,2022 |
|
|
|
|
|
|
|
|
|
Results of
Operations |
|
|
|
|
|
|
|
|
|
Interest income |
$ |
32,185 |
|
|
$ |
28,699 |
|
|
$ |
17,752 |
|
|
$ |
60,884 |
|
|
$ |
33,624 |
|
Interest expense |
|
12,753 |
|
|
|
9,153 |
|
|
|
1,387 |
|
|
|
21,906 |
|
|
|
2,605 |
|
Net interest income |
|
19,432 |
|
|
|
19,546 |
|
|
|
16,365 |
|
|
|
38,978 |
|
|
|
31,019 |
|
Provision for credit
losses |
|
1,557 |
|
|
|
1,181 |
|
|
|
1,304 |
|
|
|
2,738 |
|
|
|
2,004 |
|
Net interest income after
provision |
|
17,875 |
|
|
|
18,365 |
|
|
|
15,061 |
|
|
|
36,240 |
|
|
|
29,015 |
|
Noninterest income |
|
6,862 |
|
|
|
1,786 |
|
|
|
1,404 |
|
|
|
8,648 |
|
|
|
2,737 |
|
Noninterest expense |
|
13,432 |
|
|
|
10,158 |
|
|
|
9,652 |
|
|
|
23,590 |
|
|
|
18,942 |
|
Income tax expense |
|
2,549 |
|
|
|
2,322 |
|
|
|
1,590 |
|
|
|
4,871 |
|
|
|
3,030 |
|
Net income |
$ |
8,756 |
|
|
$ |
7,671 |
|
|
$ |
5,223 |
|
|
$ |
16,427 |
|
|
$ |
9,780 |
|
Core net income(1) |
$ |
7,058 |
|
|
$ |
7,280 |
|
|
$ |
5,255 |
|
|
$ |
14,339 |
|
|
$ |
10,086 |
|
|
|
|
|
|
|
|
|
|
|
Share and Per Share Data |
|
|
|
|
|
|
|
|
|
Shares issued and
outstanding |
|
8,738,814 |
|
|
|
8,723,763 |
|
|
|
8,691,620 |
|
|
|
8,738,814 |
|
|
|
8,691,620 |
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
8,763,635 |
|
|
|
8,762,450 |
|
|
|
8,740,295 |
|
|
|
8,763,046 |
|
|
|
8,818,327 |
|
Diluted |
|
8,950,847 |
|
|
|
9,044,490 |
|
|
|
8,894,577 |
|
|
|
9,001,600 |
|
|
|
8,960,565 |
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.00 |
|
|
$ |
0.87 |
|
|
$ |
0.60 |
|
|
$ |
1.87 |
|
|
$ |
1.11 |
|
Diluted |
$ |
0.98 |
|
|
$ |
0.85 |
|
|
$ |
0.59 |
|
|
$ |
1.82 |
|
|
$ |
1.09 |
|
Core - diluted(1) |
$ |
0.79 |
|
|
$ |
0.80 |
|
|
$ |
0.59 |
|
|
$ |
1.59 |
|
|
$ |
1.13 |
|
Book value per share |
$ |
22.57 |
|
|
$ |
21.74 |
|
|
$ |
19.32 |
|
|
$ |
22.57 |
|
|
$ |
19.32 |
|
Tangible book value per
share(1) |
$ |
20.52 |
|
|
$ |
19.68 |
|
|
$ |
17.23 |
|
|
$ |
20.52 |
|
|
$ |
17.23 |
|
Cash dividends per common
share |
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.18 |
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
|
Performance and Financial Ratios |
|
|
|
|
|
|
|
|
|
ROAA |
|
1.60 |
% |
|
|
1.51 |
% |
|
|
1.15 |
% |
|
|
1.56 |
% |
|
|
1.09 |
% |
ROAE |
|
18.15 |
% |
|
|
16.67 |
% |
|
|
12.32 |
% |
|
|
17.43 |
% |
|
|
11.36 |
% |
Core ROAA(1) |
|
1.29 |
% |
|
|
1.44 |
% |
|
|
1.16 |
% |
|
|
1.36 |
% |
|
|
1.13 |
% |
ROATCE(2) |
|
20.01 |
% |
|
|
18.45 |
% |
|
|
13.80 |
% |
|
|
19.25 |
% |
|
|
12.70 |
% |
Core ROATCE(1) |
|
16.13 |
% |
|
|
17.51 |
% |
|
|
13.89 |
% |
|
|
16.80 |
% |
|
|
13.10 |
% |
NIM |
|
3.73 |
% |
|
|
4.07 |
% |
|
|
3.84 |
% |
|
|
3.89 |
% |
|
|
3.69 |
% |
NIM - FTE(2) |
|
3.74 |
% |
|
|
4.09 |
% |
|
|
3.86 |
% |
|
|
3.90 |
% |
|
|
3.70 |
% |
Net interest spread |
|
2.86 |
% |
|
|
3.33 |
% |
|
|
3.67 |
% |
|
|
3.08 |
% |
|
|
3.53 |
% |
Yield on loans |
|
6.61 |
% |
|
|
6.38 |
% |
|
|
4.80 |
% |
|
|
6.50 |
% |
|
|
4.74 |
% |
Yield on interest-earning
assets |
|
6.17 |
% |
|
|
5.97 |
% |
|
|
4.16 |
% |
|
|
6.08 |
% |
|
|
4.00 |
% |
Cost of interest-bearing
liabilities |
|
3.31 |
% |
|
|
2.64 |
% |
|
|
0.49 |
% |
|
|
3.00 |
% |
|
|
0.47 |
% |
Cost of funds(2) |
|
2.58 |
% |
|
|
2.01 |
% |
|
|
0.34 |
% |
|
|
2.31 |
% |
|
|
0.33 |
% |
Cost of interest-bearing
deposits |
|
3.12 |
% |
|
|
2.42 |
% |
|
|
0.34 |
% |
|
|
2.79 |
% |
|
|
0.34 |
% |
Cost of total deposits |
|
2.38 |
% |
|
|
1.81 |
% |
|
|
0.23 |
% |
|
|
2.11 |
% |
|
|
0.23 |
% |
Noninterest deposits to total
deposits |
|
23.36 |
% |
|
|
24.24 |
% |
|
|
31.16 |
% |
|
|
23.36 |
% |
|
|
31.16 |
% |
Core deposits to total
deposits |
|
86.43 |
% |
|
|
88.57 |
% |
|
|
94.86 |
% |
|
|
86.43 |
% |
|
|
94.86 |
% |
Uninsured deposits to total
deposits |
|
28.75 |
% |
|
|
31.72 |
% |
|
|
40.13 |
% |
|
|
28.75 |
% |
|
|
40.13 |
% |
Total loans to total
deposits |
|
89.22 |
% |
|
|
91.94 |
% |
|
|
86.95 |
% |
|
|
89.22 |
% |
|
|
86.95 |
% |
Efficiency ratio |
|
51.00 |
% |
|
|
48.79 |
% |
|
|
54.19 |
% |
|
|
50.02 |
% |
|
|
55.45 |
% |
Core efficiency ratio(1) |
|
49.96 |
% |
|
|
48.79 |
% |
|
|
54.19 |
% |
|
|
49.38 |
% |
|
|
55.45 |
% |
|
|
|
|
|
|
|
|
|
|
(1) See "Reconciliation of Non-GAAP Financial
Measures" below for reconciliation of non-GAAP financial measures
to their most closely comparable GAAP financial measures.(2)
Includes total interest-bearing liabilities and noninterest
deposits.
SELECT FINANCIAL DATA |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
June 30,2023 |
|
March 31,2023 |
|
June 30,2022 |
|
June 30,2023 |
|
June 30,2022 |
|
|
|
|
|
|
|
|
|
Financial Condition
(ending) |
|
|
|
|
|
|
|
|
|
Total loans |
$ |
1,716,512 |
|
|
$ |
1,645,315 |
|
|
$ |
1,430,205 |
|
|
$ |
1,716,512 |
|
|
$ |
1,430,205 |
|
Total securities |
|
182,717 |
|
|
|
183,197 |
|
|
|
171,411 |
|
|
|
182,717 |
|
|
|
171,411 |
|
Total assets |
|
2,277,803 |
|
|
|
2,135,622 |
|
|
|
1,902,495 |
|
|
|
2,277,803 |
|
|
|
1,902,495 |
|
Total noninterest bearing
deposits |
|
449,433 |
|
|
|
433,832 |
|
|
|
512,598 |
|
|
|
449,433 |
|
|
|
512,598 |
|
Total core deposits(1) |
|
1,662,855 |
|
|
|
1,584,915 |
|
|
|
1,560,390 |
|
|
|
1,662,855 |
|
|
|
1,560,390 |
|
Total deposits |
|
1,923,911 |
|
|
|
1,789,491 |
|
|
|
1,644,946 |
|
|
|
1,923,911 |
|
|
|
1,644,946 |
|
Total borrowings |
|
131,472 |
|
|
|
131,372 |
|
|
|
72,013 |
|
|
|
131,472 |
|
|
|
72,013 |
|
Total liabilities |
|
2,080,554 |
|
|
|
1,945,959 |
|
|
|
1,734,548 |
|
|
|
2,080,554 |
|
|
|
1,734,548 |
|
Total shareholders’
equity |
|
197,249 |
|
|
|
189,663 |
|
|
|
167,947 |
|
|
|
197,249 |
|
|
|
167,947 |
|
|
|
|
|
|
|
|
|
|
|
Financial Condition (average) |
|
|
|
|
|
|
|
|
|
Total loans |
$ |
1,676,816 |
|
|
$ |
1,609,564 |
|
|
$ |
1,359,320 |
|
|
$ |
1,643,376 |
|
|
$ |
1,319,090 |
|
Total securities |
|
196,731 |
|
|
|
192,348 |
|
|
|
178,527 |
|
|
|
194,552 |
|
|
|
170,151 |
|
Total other interest-earning
assets |
|
218,451 |
|
|
|
146,045 |
|
|
|
172,175 |
|
|
|
182,447 |
|
|
|
207,990 |
|
Total interest-bearing
assets |
|
2,091,998 |
|
|
|
1,947,957 |
|
|
|
1,710,022 |
|
|
|
2,020,375 |
|
|
|
1,697,231 |
|
Total assets |
|
2,200,843 |
|
|
|
2,057,005 |
|
|
|
1,821,437 |
|
|
|
2,129,328 |
|
|
|
1,804,321 |
|
Total noninterest-bearing
deposits |
|
438,987 |
|
|
|
438,735 |
|
|
|
502,728 |
|
|
|
438,862 |
|
|
|
508,560 |
|
Total interest-bearing
deposits |
|
1,412,047 |
|
|
|
1,300,632 |
|
|
|
1,059,362 |
|
|
|
1,356,648 |
|
|
|
1,041,728 |
|
Total deposits |
|
1,851,034 |
|
|
|
1,739,367 |
|
|
|
1,562,090 |
|
|
|
1,795,510 |
|
|
|
1,550,288 |
|
Total borrowings |
|
131,411 |
|
|
|
104,901 |
|
|
|
72,066 |
|
|
|
118,229 |
|
|
|
65,506 |
|
Total interest-bearing
liabilities |
|
1,543,458 |
|
|
|
1,405,533 |
|
|
|
1,131,428 |
|
|
|
1,474,877 |
|
|
|
1,107,234 |
|
Total shareholders’
equity |
|
193,516 |
|
|
|
186,639 |
|
|
|
170,038 |
|
|
|
190,096 |
|
|
|
173,621 |
|
|
|
|
|
|
|
|
|
|
|
Asset Quality |
|
|
|
|
|
|
|
|
|
Nonperforming loans |
$ |
1,010 |
|
|
$ |
1,646 |
|
|
$ |
3,550 |
|
|
$ |
1,010 |
|
|
$ |
3,550 |
|
Other real estate owned
(“OREO”) |
$ |
2,870 |
|
|
$ |
2,930 |
|
|
$ |
2,930 |
|
|
$ |
2,870 |
|
|
$ |
2,930 |
|
Nonperforming assets
(“NPA”) |
$ |
3,880 |
|
|
$ |
4,576 |
|
|
$ |
6,480 |
|
|
$ |
3,880 |
|
|
$ |
6,480 |
|
Net charge-offs (recovery) to
average loans(2) |
|
0.01 |
% |
|
|
0.05 |
% |
|
|
— |
% |
|
|
0.03 |
% |
|
|
0.01 |
% |
Provision for credit losses to
average loans(2) |
|
0.37 |
% |
|
|
0.30 |
% |
|
|
0.38 |
% |
|
|
0.34 |
% |
|
|
0.31 |
% |
ACL to loans |
|
1.25 |
% |
|
|
1.21 |
% |
|
|
1.18 |
% |
|
|
1.25 |
% |
|
|
1.18 |
% |
ACL to gross loans |
|
1.24 |
% |
|
|
1.20 |
% |
|
|
1.17 |
% |
|
|
1.24 |
% |
|
|
1.17 |
% |
ACL to NPL |
|
2117.33 |
% |
|
|
1206.26 |
% |
|
|
473.44 |
% |
|
|
2117.33 |
% |
|
|
473.44 |
% |
NPL to loans |
|
0.06 |
% |
|
|
0.10 |
% |
|
|
0.25 |
% |
|
|
0.06 |
% |
|
|
0.25 |
% |
NPL to gross loans |
|
0.06 |
% |
|
|
0.10 |
% |
|
|
0.25 |
% |
|
|
0.06 |
% |
|
|
0.25 |
% |
NPA to gross loans and
OREO |
|
0.22 |
% |
|
|
0.28 |
% |
|
|
0.45 |
% |
|
|
0.22 |
% |
|
|
0.45 |
% |
NPA to total assets |
|
0.17 |
% |
|
|
0.21 |
% |
|
|
0.34 |
% |
|
|
0.17 |
% |
|
|
0.34 |
% |
|
|
|
|
|
|
|
|
|
|
Regulatory and Other Capital Ratios |
|
|
|
|
|
|
|
|
|
Total shareholders’ equity to
total assets |
|
8.66 |
% |
|
|
8.88 |
% |
|
|
8.83 |
% |
|
|
8.66 |
% |
|
|
8.83 |
% |
Tangible common equity to
tangible assets(3) |
|
7.94 |
% |
|
|
8.11 |
% |
|
|
7.95 |
% |
|
|
7.94 |
% |
|
|
7.95 |
% |
Tier 1 capital ratio to
average assets |
|
8.70 |
% |
|
|
8.89 |
% |
|
|
8.78 |
% |
|
|
8.70 |
% |
|
|
8.78 |
% |
Risk-based capital
ratios: |
|
|
|
|
|
|
|
|
|
CET1 capital ratio |
|
9.11 |
% |
|
|
9.00 |
% |
|
|
8.92 |
% |
|
|
9.11 |
% |
|
|
8.92 |
% |
Tier 1 capital ratio |
|
9.11 |
% |
|
|
9.00 |
% |
|
|
8.92 |
% |
|
|
9.11 |
% |
|
|
8.92 |
% |
Total capital ratio |
|
14.42 |
% |
|
|
14.41 |
% |
|
|
12.58 |
% |
|
|
14.42 |
% |
|
|
12.58 |
% |
|
|
|
|
|
|
|
|
|
|
(1) We define core deposits as total deposits
excluding brokered deposits and time deposits greater than
$250,000.(2) Ratio is annualized.(3) See "Reconciliation of
Non-GAAP Financial Measures" below for reconciliation of non-GAAP
financial measures to their most closely comparable GAAP financial
measures.
CONSOLIDATED STATEMENTS OF FINANCIAL
CONDITION |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
June 30,2023 |
|
March 31,2023 |
|
December 31,2022 |
|
June 30,2022 |
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
(Unaudited) |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Cash and due from banks |
$ |
21,299 |
|
|
$ |
17,245 |
|
|
$ |
15,260 |
|
|
$ |
22,167 |
|
Interest-bearing deposits in
banks |
|
159,818 |
|
|
|
99,541 |
|
|
|
90,198 |
|
|
|
95,156 |
|
Federal funds sold |
|
84,812 |
|
|
|
76,010 |
|
|
|
63,041 |
|
|
|
73,024 |
|
Total cash and cash equivalents |
|
265,929 |
|
|
|
192,796 |
|
|
|
168,499 |
|
|
|
190,347 |
|
|
|
|
|
|
|
|
|
Securities available for sale,
at fair value |
|
163,075 |
|
|
|
163,550 |
|
|
|
155,544 |
|
|
|
151,749 |
|
Securities held to maturity,
at amortized cost |
|
19,642 |
|
|
|
19,647 |
|
|
|
19,652 |
|
|
|
19,662 |
|
Other equity securities, at
fair value |
|
3,762 |
|
|
|
3,806 |
|
|
|
4,444 |
|
|
|
6,958 |
|
Restricted equity securities,
at cost |
|
3,862 |
|
|
|
3,862 |
|
|
|
3,134 |
|
|
|
2,825 |
|
Loans held for sale |
|
1,589 |
|
|
|
2,376 |
|
|
|
1,047 |
|
|
|
2,709 |
|
|
|
|
|
|
|
|
|
Loans, net of unearned
income |
|
1,716,512 |
|
|
|
1,645,315 |
|
|
|
1,587,164 |
|
|
|
1,430,205 |
|
Less allowance for credit
losses |
|
21,385 |
|
|
|
19,855 |
|
|
|
20,156 |
|
|
|
16,807 |
|
Loans, net |
|
1,695,127 |
|
|
|
1,625,460 |
|
|
|
1,567,008 |
|
|
|
1,413,398 |
|
|
|
|
|
|
|
|
|
Premises and equipment,
net |
|
26,957 |
|
|
|
27,098 |
|
|
|
27,345 |
|
|
|
28,467 |
|
Accrued interest
receivable |
|
7,372 |
|
|
|
7,077 |
|
|
|
6,963 |
|
|
|
4,839 |
|
Bank owned life insurance |
|
29,521 |
|
|
|
29,350 |
|
|
|
29,186 |
|
|
|
29,509 |
|
Annuities |
|
15,359 |
|
|
|
15,489 |
|
|
|
15,478 |
|
|
|
15,540 |
|
Foreclosed assets |
|
2,870 |
|
|
|
2,930 |
|
|
|
2,930 |
|
|
|
2,930 |
|
Goodwill |
|
16,862 |
|
|
|
16,862 |
|
|
|
16,862 |
|
|
|
16,862 |
|
Core deposit intangible |
|
1,062 |
|
|
|
1,144 |
|
|
|
1,226 |
|
|
|
1,368 |
|
Other assets |
|
24,814 |
|
|
|
24,175 |
|
|
|
25,886 |
|
|
|
15,332 |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
2,277,803 |
|
|
$ |
2,135,622 |
|
|
$ |
2,045,204 |
|
|
$ |
1,902,495 |
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
Noninterest-bearing |
$ |
449,433 |
|
|
$ |
433,832 |
|
|
$ |
460,977 |
|
|
$ |
512,598 |
|
Interest-bearing |
|
1,474,478 |
|
|
|
1,355,659 |
|
|
|
1,259,766 |
|
|
|
1,132,348 |
|
Total deposits |
|
1,923,911 |
|
|
|
1,789,491 |
|
|
|
1,720,743 |
|
|
|
1,644,946 |
|
|
|
|
|
|
|
|
|
Other borrowings |
|
(13 |
) |
|
|
(16 |
) |
|
|
(19 |
) |
|
|
— |
|
FHLB advances |
|
45,000 |
|
|
|
45,000 |
|
|
|
31,000 |
|
|
|
25,000 |
|
Subordinated notes |
|
86,485 |
|
|
|
86,388 |
|
|
|
86,314 |
|
|
|
47,013 |
|
Accrued interest payable |
|
1,063 |
|
|
|
844 |
|
|
|
584 |
|
|
|
88 |
|
Other liabilities |
|
24,108 |
|
|
|
24,252 |
|
|
|
24,863 |
|
|
|
17,501 |
|
|
|
|
|
|
|
|
|
Total liabilities |
|
2,080,554 |
|
|
|
1,945,959 |
|
|
|
1,863,485 |
|
|
|
1,734,548 |
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
Common stock |
|
43,830 |
|
|
|
43,798 |
|
|
|
43,714 |
|
|
|
43,458 |
|
Capital surplus |
|
77,101 |
|
|
|
77,053 |
|
|
|
76,785 |
|
|
|
75,597 |
|
Retained earnings |
|
88,603 |
|
|
|
80,642 |
|
|
|
73,764 |
|
|
|
58,039 |
|
Accumulated other comprehensive loss |
|
(10,799 |
) |
|
|
(9,846 |
) |
|
|
(11,048 |
) |
|
|
(8,439 |
) |
Unvested restricted stock |
|
(709 |
) |
|
|
(965 |
) |
|
|
(477 |
) |
|
|
(708 |
) |
Vested restricted stock units |
|
(777 |
) |
|
|
(1,019 |
) |
|
|
(1,019 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
Total stockholders' equity |
|
197,249 |
|
|
|
189,663 |
|
|
|
181,719 |
|
|
|
167,947 |
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
2,277,803 |
|
|
$ |
2,135,622 |
|
|
$ |
2,045,204 |
|
|
$ |
1,902,495 |
|
CONSOLIDATED STATEMENTS OF INCOME |
(Dollars in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
June 30,2023 |
|
March 31,2023 |
|
June 30,2022 |
|
June 30,2023 |
|
June 30,2022 |
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Interest
income: |
|
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
27,630 |
|
|
$ |
25,335 |
|
|
$ |
16,265 |
|
|
$ |
52,965 |
|
$ |
31,031 |
|
Taxable securities |
|
1,641 |
|
|
|
1,383 |
|
|
|
788 |
|
|
|
3,024 |
|
|
1,407 |
|
Nontaxable securities |
|
228 |
|
|
|
291 |
|
|
|
309 |
|
|
|
519 |
|
|
608 |
|
Other interest and dividends |
|
2,686 |
|
|
|
1,690 |
|
|
|
390 |
|
|
|
4,376 |
|
|
578 |
|
Total interest income |
|
32,185 |
|
|
|
28,699 |
|
|
|
17,752 |
|
|
|
60,884 |
|
|
33,624 |
|
|
|
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
Deposits |
|
10,998 |
|
|
|
7,768 |
|
|
|
889 |
|
|
|
18,766 |
|
|
1,762 |
|
Other borrowings |
|
1,755 |
|
|
|
1,385 |
|
|
|
498 |
|
|
|
3,140 |
|
|
843 |
|
Total interest expense |
|
12,753 |
|
|
|
9,153 |
|
|
|
1,387 |
|
|
|
21,906 |
|
|
2,605 |
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
19,432 |
|
|
|
19,546 |
|
|
|
16,365 |
|
|
|
38,978 |
|
|
31,019 |
|
Provision for credit
losses |
|
1,557 |
|
|
|
1,181 |
|
|
|
1,304 |
|
|
|
2,738 |
|
|
2,004 |
|
Net interest income after provision for credit
losses |
|
17,875 |
|
|
|
18,365 |
|
|
|
15,061 |
|
|
|
36,240 |
|
|
29,015 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
456 |
|
|
|
450 |
|
|
|
480 |
|
|
|
906 |
|
|
925 |
|
Swap fees |
|
173 |
|
|
|
(4 |
) |
|
|
21 |
|
|
|
169 |
|
|
36 |
|
SBA/USDA fees |
|
66 |
|
|
|
134 |
|
|
|
93 |
|
|
|
200 |
|
|
481 |
|
Mortgage origination fees |
|
188 |
|
|
|
100 |
|
|
|
213 |
|
|
|
288 |
|
|
499 |
|
Net gain (loss) on securities |
|
(45 |
) |
|
|
514 |
|
|
|
(42 |
) |
|
|
469 |
|
|
(403 |
) |
Other operating income |
|
6,024 |
|
|
|
592 |
|
|
|
639 |
|
|
|
6,616 |
|
|
1,199 |
|
Total noninterest income |
|
6,862 |
|
|
|
1,786 |
|
|
|
1,404 |
|
|
|
8,648 |
|
|
2,737 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expenses: |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
7,863 |
|
|
|
6,311 |
|
|
|
5,982 |
|
|
|
14,174 |
|
|
11,707 |
|
Equipment and occupancy expenses |
|
694 |
|
|
|
683 |
|
|
|
719 |
|
|
|
1,377 |
|
|
1,424 |
|
Data processing fees |
|
646 |
|
|
|
593 |
|
|
|
570 |
|
|
|
1,239 |
|
|
1,134 |
|
Regulatory assessments |
|
180 |
|
|
|
342 |
|
|
|
262 |
|
|
|
522 |
|
|
525 |
|
Other operating expenses |
|
4,049 |
|
|
|
2,229 |
|
|
|
2,119 |
|
|
|
6,278 |
|
|
4,152 |
|
Total noninterest expenses |
|
13,432 |
|
|
|
10,158 |
|
|
|
9,652 |
|
|
|
23,590 |
|
|
18,942 |
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
11,305 |
|
|
|
9,993 |
|
|
|
6,813 |
|
|
|
21,298 |
|
|
12,810 |
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
2,549 |
|
|
|
2,322 |
|
|
|
1,590 |
|
|
|
4,871 |
|
|
3,030 |
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
8,756 |
|
|
$ |
7,671 |
|
|
$ |
5,223 |
|
|
$ |
16,427 |
|
$ |
9,780 |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share |
$ |
1.00 |
|
|
$ |
0.87 |
|
|
$ |
0.60 |
|
|
$ |
1.87 |
|
$ |
1.11 |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share |
$ |
0.98 |
|
|
$ |
0.85 |
|
|
$ |
0.59 |
|
|
$ |
1.82 |
|
$ |
1.09 |
|
AVERAGE BALANCE SHEET AND NET INTEREST MARGIN |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
June 30,2023 |
|
March 31,2023 |
|
June 30,2022 |
AverageBalance |
|
Interest |
|
Yield/Rate |
|
AverageBalance |
|
Interest |
|
Yield/Rate |
|
AverageBalance |
|
Interest |
|
Yield/Rate |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned income(1) |
$ |
1,676,816 |
|
|
$ |
27,630 |
|
6.61 |
% |
|
$ |
1,609,564 |
|
|
$ |
25,335 |
|
6.38 |
% |
|
$ |
1,359,320 |
|
|
$ |
16,265 |
|
4.80 |
% |
Taxable securities |
|
151,107 |
|
|
|
1,641 |
|
4.36 |
% |
|
|
139,516 |
|
|
|
1,383 |
|
4.02 |
% |
|
|
121,677 |
|
|
|
788 |
|
2.60 |
% |
Nontaxable securities |
|
45,624 |
|
|
|
228 |
|
2.00 |
% |
|
|
52,832 |
|
|
|
291 |
|
2.24 |
% |
|
|
56,850 |
|
|
|
309 |
|
2.18 |
% |
Other interest-earnings
assets |
|
218,451 |
|
|
|
2,686 |
|
4.93 |
% |
|
|
146,045 |
|
|
|
1,690 |
|
4.69 |
% |
|
|
172,175 |
|
|
|
390 |
|
0.91 |
% |
Total interest-earning assets |
$ |
2,091,998 |
|
|
$ |
32,185 |
|
6.17 |
% |
|
$ |
1,947,957 |
|
|
$ |
28,699 |
|
5.97 |
% |
|
$ |
1,710,022 |
|
|
$ |
17,752 |
|
4.16 |
% |
Allowance for credit losses |
|
(20,154 |
) |
|
|
|
|
|
|
(20,493 |
) |
|
|
|
|
|
|
(15,815 |
) |
|
|
|
|
Noninterest-earning assets |
|
128,999 |
|
|
|
|
|
|
|
129,541 |
|
|
|
|
|
|
|
127,230 |
|
|
|
|
|
Total Assets |
$ |
2,200,843 |
|
|
|
|
|
|
$ |
2,057,005 |
|
|
|
|
|
|
$ |
1,821,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction accounts |
|
92,245 |
|
|
|
20 |
|
0.09 |
% |
|
|
93,951 |
|
|
|
20 |
|
0.08 |
% |
|
|
114,743 |
|
|
|
27 |
|
0.09 |
% |
Savings and money market accounts |
|
845,742 |
|
|
|
6,872 |
|
3.26 |
% |
|
|
806,001 |
|
|
|
5,040 |
|
2.54 |
% |
|
|
735,845 |
|
|
|
625 |
|
0.34 |
% |
Time deposits |
|
474,060 |
|
|
|
4,106 |
|
3.47 |
% |
|
|
400,680 |
|
|
|
2,708 |
|
2.74 |
% |
|
|
208,774 |
|
|
|
237 |
|
0.46 |
% |
FHLB advances |
|
45,000 |
|
|
|
529 |
|
4.72 |
% |
|
|
18,578 |
|
|
|
159 |
|
3.47 |
% |
|
|
25,000 |
|
|
|
21 |
|
0.33 |
% |
Other borrowings |
|
86,411 |
|
|
|
1,226 |
|
5.69 |
% |
|
|
86,323 |
|
|
|
1,226 |
|
5.76 |
% |
|
|
47,066 |
|
|
|
477 |
|
4.07 |
% |
Total interest-bearing liabilities |
$ |
1,543,458 |
|
|
$ |
12,753 |
|
3.31 |
% |
|
$ |
1,405,533 |
|
|
$ |
9,153 |
|
2.64 |
% |
|
$ |
1,131,428 |
|
|
$ |
1,387 |
|
0.49 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
438,987 |
|
|
|
|
|
|
$ |
438,735 |
|
|
|
|
|
|
$ |
502,728 |
|
|
|
|
|
Other liabilities |
|
24,882 |
|
|
|
|
|
|
|
26,098 |
|
|
|
|
|
|
|
17,243 |
|
|
|
|
|
Total noninterest-bearing liabilities |
|
463,869 |
|
|
|
|
|
|
|
464,833 |
|
|
|
|
|
|
|
519,971 |
|
|
|
|
|
Stockholders’ Equity |
|
193,516 |
|
|
|
|
|
|
|
186,639 |
|
|
|
|
|
|
|
170,038 |
|
|
|
|
|
Total Liabilities and Stockholders’ Equity |
$ |
2,200,843 |
|
|
|
|
|
|
$ |
2,057,005 |
|
|
|
|
|
|
$ |
1,821,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$ |
19,432 |
|
|
|
|
|
$ |
19,546 |
|
|
|
|
|
$ |
16,365 |
|
|
Net interest spread(2) |
|
|
|
|
2.86 |
% |
|
|
|
|
|
3.33 |
% |
|
|
|
|
|
3.67 |
% |
Net interest margin(3) |
|
|
|
|
3.73 |
% |
|
|
|
|
|
4.07 |
% |
|
|
|
|
|
3.84 |
% |
Net interest margin -
FTE(4)(5) |
|
|
|
|
3.74 |
% |
|
|
|
|
|
4.09 |
% |
|
|
|
|
|
3.86 |
% |
Cost of funds(6) |
|
|
|
|
2.58 |
% |
|
|
|
|
|
2.01 |
% |
|
|
|
|
|
0.34 |
% |
Cost of interest-bearing
deposits |
|
|
|
|
3.12 |
% |
|
|
|
|
|
2.42 |
% |
|
|
|
|
|
0.34 |
% |
Cost of total deposits |
|
|
|
|
2.38 |
% |
|
|
|
|
|
1.81 |
% |
|
|
|
|
|
0.23 |
% |
(1) Includes nonaccrual loans.(2) Net interest
spread is the difference between interest rates earned on interest
earning assets and interest rates paid on interest-bearing
liabilities.(3) Net interest margin is a ratio of net interest
income to average interest earning assets for the same period.(4)
Net interest margin - FTE is a ratio of fully-taxable equivalent
net interest income to average interest earning assets for the same
period. It assumes a 24.0% tax rate.(5) Refer to “Reconciliation of
Non-GAAP Financial Measures”.(6) Includes total interest-bearing
liabilities and noninterest deposits.
AVERAGE BALANCE SHEET AND NET INTEREST MARGIN |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
June 30,2023 |
|
June 30,2022 |
AverageBalance |
|
Interest |
|
Yield/Rate |
|
AverageBalance |
|
Interest |
|
Yield/Rate |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned income(1) |
$ |
1,643,376 |
|
|
$ |
52,965 |
|
6.50 |
% |
|
$ |
1,319,090 |
|
|
$ |
31,031 |
|
4.74 |
% |
Taxable securities |
|
145,344 |
|
|
|
3,024 |
|
4.20 |
% |
|
|
114,289 |
|
|
|
1,407 |
|
2.48 |
% |
Nontaxable securities |
|
49,208 |
|
|
|
519 |
|
2.13 |
% |
|
|
55,862 |
|
|
|
608 |
|
2.19 |
% |
Other interest-earnings
assets |
|
182,447 |
|
|
|
4,376 |
|
4.84 |
% |
|
|
207,990 |
|
|
|
578 |
|
0.56 |
% |
Total interest-earning assets |
$ |
2,020,375 |
|
|
$ |
60,884 |
|
6.08 |
% |
|
$ |
1,697,231 |
|
|
$ |
33,624 |
|
4.00 |
% |
Allowance for credit losses |
|
(20,315 |
) |
|
|
|
|
|
|
(15,430 |
) |
|
|
|
|
Noninterest-earning assets |
|
129,268 |
|
|
|
|
|
|
|
122,520 |
|
|
|
|
|
Total Assets |
$ |
2,129,328 |
|
|
|
|
|
|
$ |
1,804,321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction accounts |
|
93,093 |
|
|
|
40 |
|
0.09 |
% |
|
|
112,874 |
|
|
|
53 |
|
0.09 |
% |
Savings and money market accounts |
|
825,982 |
|
|
|
11,911 |
|
2.91 |
% |
|
|
705,841 |
|
|
|
1,217 |
|
0.35 |
% |
Time deposits |
|
437,573 |
|
|
|
6,815 |
|
3.14 |
% |
|
|
223,013 |
|
|
|
492 |
|
0.45 |
% |
FHLB advances |
|
31,862 |
|
|
|
688 |
|
4.35 |
% |
|
|
25,472 |
|
|
|
43 |
|
0.34 |
% |
Other borrowings |
|
86,367 |
|
|
|
2,452 |
|
5.73 |
% |
|
|
40,034 |
|
|
|
800 |
|
4.03 |
% |
Total interest-bearing liabilities |
$ |
1,474,877 |
|
|
$ |
21,906 |
|
3.00 |
% |
|
$ |
1,107,234 |
|
|
$ |
2,605 |
|
0.47 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
438,862 |
|
|
|
|
|
|
$ |
508,560 |
|
|
|
|
|
Other liabilities |
|
25,493 |
|
|
|
|
|
|
|
14,906 |
|
|
|
|
|
Total noninterest-bearing liabilities |
$ |
464,355 |
|
|
|
|
|
|
$ |
523,466 |
|
|
|
|
|
Stockholders’ Equity |
|
190,096 |
|
|
|
|
|
|
|
173,621 |
|
|
|
|
|
Total Liabilities and Stockholders’ Equity |
$ |
2,129,328 |
|
|
|
|
|
|
$ |
1,804,321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$ |
38,978 |
|
|
|
|
|
$ |
31,019 |
|
|
Net interest spread(2) |
|
|
|
|
3.08 |
% |
|
|
|
|
|
3.53 |
% |
Net interest margin(3) |
|
|
|
|
3.89 |
% |
|
|
|
|
|
3.69 |
% |
Net interest margin -
FTE(4)(5) |
|
|
|
|
3.90 |
% |
|
|
|
|
|
3.70 |
% |
Cost of funds(6) |
|
|
|
|
2.31 |
% |
|
|
|
|
|
0.33 |
% |
Cost of interest-bearing
deposits |
|
|
|
|
2.79 |
% |
|
|
|
|
|
0.34 |
% |
Cost of total deposits |
|
|
|
|
2.11 |
% |
|
|
|
|
|
0.23 |
% |
(1) Includes nonaccrual
loans.(2) Net interest spread is the difference between
interest rates earned on interest earning assets and interest rates
paid on interest-bearing liabilities.(3) Net
interest margin is a ratio of net interest income to average
interest earning assets for the same
period.(4) Net interest margin - FTE is a ratio of
fully-taxable equivalent net interest income to average interest
earning assets for the same period. It assumes a 24.0% tax
rate.(5) Refer to “Reconciliation of Non-GAAP
Financial Measures”.(6) Includes total
interest-bearing liabilities and noninterest deposits.
LOAN COMPOSITION |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,2023 |
|
March 31,2023 |
|
December 31,2022 |
|
June 30,2022 |
Amount |
|
% of |
|
Amount |
|
% of |
|
Amount |
|
% of |
|
Amount |
|
% of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate mortgages: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and |
$ |
228,236 |
|
|
13.3 |
% |
|
$ |
227,560 |
|
|
13.8 |
% |
|
$ |
255,736 |
|
|
16.1 |
% |
|
$ |
185,164 |
|
|
12.9 |
% |
Residential |
|
214,897 |
|
|
12.5 |
% |
|
|
196,923 |
|
|
11.9 |
% |
|
|
167,891 |
|
|
10.5 |
% |
|
|
153,275 |
|
|
10.7 |
% |
Commercial |
|
1,011,815 |
|
|
58.7 |
% |
|
|
948,251 |
|
|
57.5 |
% |
|
|
904,872 |
|
|
56.8 |
% |
|
|
867,815 |
|
|
60.4 |
% |
Commercial and industrial |
|
259,195 |
|
|
15.0 |
% |
|
|
270,825 |
|
|
16.4 |
% |
|
|
256,553 |
|
|
16.1 |
% |
|
|
219,284 |
|
|
15.3 |
% |
Consumer and other |
|
8,135 |
|
|
0.5 |
% |
|
|
7,370 |
|
|
0.4 |
% |
|
|
7,655 |
|
|
0.5 |
% |
|
|
9,551 |
|
|
0.7 |
% |
Gross loans |
|
1,722,278 |
|
|
100.0 |
% |
|
|
1,650,929 |
|
|
100.0 |
% |
|
|
1,592,707 |
|
|
100.0 |
% |
|
|
1,435,089 |
|
|
100.0 |
% |
Unearned income |
|
(5,766 |
) |
|
|
|
|
(5,614 |
) |
|
|
|
|
(5,543 |
) |
|
|
|
|
(4,884 |
) |
|
|
Loans, net of unearned income |
|
1,716,512 |
|
|
|
|
|
1,645,315 |
|
|
|
|
|
1,587,164 |
|
|
|
|
|
1,430,205 |
|
|
|
Allowance for credit
losses |
|
(21,385 |
) |
|
|
|
|
(19,855 |
) |
|
|
|
|
(20,156 |
) |
|
|
|
|
(16,807 |
) |
|
|
Loans, net |
$ |
1,695,127 |
|
|
|
|
$ |
1,625,460 |
|
|
|
|
$ |
1,567,008 |
|
|
|
|
$ |
1,413,398 |
|
|
|
DEPOSIT COMPOSITION |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,2023 |
|
March 31,2023 |
|
December 31,2022 |
|
June 30,2022 |
Amount |
|
% of total |
|
Amount |
|
% of total |
|
Amount |
|
% of total |
|
Amount |
|
% of total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing transaction |
$ |
449,433 |
|
23.3 |
% |
|
$ |
433,833 |
|
24.2 |
% |
|
$ |
460,977 |
|
26.8 |
% |
|
$ |
512,598 |
|
31.2 |
% |
Interest-bearing
transaction |
|
922,835 |
|
48.0 |
% |
|
|
877,166 |
|
49.0 |
% |
|
|
837,127 |
|
48.6 |
% |
|
|
836,230 |
|
50.8 |
% |
Savings |
|
41,574 |
|
2.2 |
% |
|
|
47,742 |
|
2.7 |
% |
|
|
49,235 |
|
2.9 |
% |
|
|
67,583 |
|
4.1 |
% |
Time deposits, $250,000 and
under |
|
438,228 |
|
22.8 |
% |
|
|
366,271 |
|
20.5 |
% |
|
|
307,145 |
|
17.8 |
% |
|
|
188,682 |
|
11.5 |
% |
Time deposits, over
$250,000 |
|
71,841 |
|
3.7 |
% |
|
|
64,479 |
|
3.6 |
% |
|
|
66,259 |
|
3.9 |
% |
|
|
39,853 |
|
2.4 |
% |
Total deposits |
$ |
1,923,911 |
|
100.0 |
% |
|
$ |
1,789,491 |
|
100.0 |
% |
|
$ |
1,720,743 |
|
100.0 |
% |
|
$ |
1,644,946 |
|
100.0 |
% |
Nonperfoming Assets |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
June 30,2023 |
|
March 31,2023 |
|
December 31,2022 |
|
June 30,2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
$ |
1,010 |
|
|
$ |
1,646 |
|
|
$ |
2,245 |
|
|
$ |
3,550 |
|
Past due loans 90 days or more
and still accruing interest |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total nonperforming loans |
|
1,010 |
|
|
|
1,646 |
|
|
|
2,245 |
|
|
|
3,550 |
|
OREO |
|
2,870 |
|
|
|
2,930 |
|
|
|
2,930 |
|
|
|
2,930 |
|
Total nonperforming assets |
$ |
3,880 |
|
|
$ |
4,576 |
|
|
$ |
5,175 |
|
|
$ |
6,480 |
|
|
|
|
|
|
|
|
|
Troubled debt restructured
loans – nonaccrual(1) |
|
724 |
|
|
|
805 |
|
|
|
832 |
|
|
|
676 |
|
Troubled debt restructured
loans – accruing |
|
1,328 |
|
|
|
1,272 |
|
|
|
1,292 |
|
|
|
1,323 |
|
Total troubled debt restructured loans |
$ |
2,052 |
|
|
$ |
2,077 |
|
|
$ |
2,124 |
|
|
$ |
1,999 |
|
|
|
|
|
|
|
|
|
Allowance for credit
losses |
$ |
21,385 |
|
|
$ |
19,855 |
|
|
$ |
20,156 |
|
|
$ |
16,807 |
|
Loans, net of unearned income
at the end of the period |
$ |
1,716,512 |
|
|
$ |
1,645,315 |
|
|
$ |
1,587,164 |
|
|
$ |
1,430,205 |
|
Gross loans outstanding at the
end of period |
$ |
1,722,278 |
|
|
$ |
1,650,929 |
|
|
$ |
1,592,707 |
|
|
$ |
1,435,089 |
|
Total assets |
$ |
2,277,803 |
|
|
$ |
2,135,622 |
|
|
$ |
2,045,204 |
|
|
$ |
1,902,495 |
|
Allowance for credit losses to
nonperforming loans |
|
2117.33 |
% |
|
|
1206.26 |
% |
|
|
897.82 |
% |
|
|
473.44 |
% |
Nonperforming loans to loans,
net of unearned income |
|
0.06 |
% |
|
|
0.10 |
% |
|
|
0.14 |
% |
|
|
0.25 |
% |
Nonperforming loans to gross
loans |
|
0.06 |
% |
|
|
0.10 |
% |
|
|
0.14 |
% |
|
|
0.25 |
% |
Nonperforming assets to gross
loans and OREO |
|
0.22 |
% |
|
|
0.28 |
% |
|
|
0.32 |
% |
|
|
0.45 |
% |
Nonperforming assets to total
assets |
|
0.17 |
% |
|
|
0.21 |
% |
|
|
0.25 |
% |
|
|
0.34 |
% |
|
|
|
|
|
|
|
|
Nonaccrual loans by
category: |
|
|
|
|
|
|
|
Real estate mortgages: |
|
|
|
|
|
|
|
Construction & Development |
$ |
33 |
|
|
$ |
64 |
|
|
$ |
67 |
|
|
$ |
73 |
|
Residential Mortgages |
|
297 |
|
|
|
267 |
|
|
|
565 |
|
|
|
563 |
|
Commercial Real Estate Mortgages |
|
671 |
|
|
|
1,263 |
|
|
|
1,278 |
|
|
|
2,135 |
|
Commercial &
Industrial |
|
9 |
|
|
|
51 |
|
|
|
312 |
|
|
|
768 |
|
Consumer and other |
|
— |
|
|
|
1 |
|
|
|
23 |
|
|
|
11 |
|
Total |
$ |
1,010 |
|
|
$ |
1,646 |
|
|
$ |
2,245 |
|
|
$ |
3,550 |
|
(1) Troubled debt restructured loans are
excluded from nonperforming loans unless they otherwise meet the
definition of nonaccrual loans or are more than 90 days past
due.
Allowance for Credit Losses |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
June 30,2023 |
|
March 31,2023 |
|
June 30,2022 |
|
June 30,2023 |
|
June 30, 2022 |
|
|
|
|
|
|
|
|
|
Average loans, net of unearned income |
$ |
1,676,816 |
|
|
$ |
1,609,564 |
|
|
$ |
1,359,320 |
|
|
$ |
1,643,376 |
|
|
$ |
1,319,090 |
|
Loans, net of unearned
income |
$ |
1,716,512 |
|
|
$ |
1,645,315 |
|
|
$ |
1,430,205 |
|
|
$ |
1,716,512 |
|
|
$ |
1,430,205 |
|
Gross loans |
$ |
1,722,278 |
|
|
$ |
1,650,929 |
|
|
$ |
1,435,089 |
|
|
$ |
1,722,278 |
|
|
$ |
1,435,089 |
|
Allowance for credit losses at
beginning of the period |
$ |
19,855 |
|
|
$ |
20,156 |
|
|
$ |
15,492 |
|
|
$ |
20,156 |
|
|
$ |
14,844 |
|
Impact of adoption of ASC
326 |
$ |
— |
|
|
$ |
(1,285 |
) |
|
$ |
— |
|
|
$ |
(1,285 |
) |
|
$ |
— |
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
Construction and development |
|
— |
|
|
|
— |
|
|
|
7 |
|
|
|
— |
|
|
|
66 |
|
Residential |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7 |
|
Commercial |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial and industrial |
|
44 |
|
|
|
218 |
|
|
|
— |
|
|
|
262 |
|
|
|
— |
|
Consumer and other |
|
— |
|
|
|
6 |
|
|
|
1 |
|
|
|
6 |
|
|
|
7 |
|
Total charge-offs |
|
44 |
|
|
|
224 |
|
|
|
8 |
|
|
|
268 |
|
|
|
80 |
|
Recoveries: |
|
|
|
|
|
|
|
|
|
Construction and development |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Residential |
|
17 |
|
|
|
11 |
|
|
|
18 |
|
|
|
28 |
|
|
|
35 |
|
Commercial |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial and industrial |
|
— |
|
|
|
14 |
|
|
|
— |
|
|
|
14 |
|
|
|
— |
|
Consumer and other |
|
— |
|
|
|
2 |
|
|
|
1 |
|
|
|
2 |
|
|
|
4 |
|
Total recoveries |
|
17 |
|
|
|
27 |
|
|
|
19 |
|
|
|
44 |
|
|
|
39 |
|
Net charge-offs (recoveries) |
$ |
27 |
|
|
$ |
197 |
|
|
$ |
(11 |
) |
|
$ |
224 |
|
|
$ |
41 |
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses |
$ |
1,557 |
|
|
$ |
1,181 |
|
|
$ |
1,304 |
|
|
$ |
2,738 |
|
|
$ |
2,004 |
|
Balance at end of the
period |
$ |
21,385 |
|
|
$ |
19,855 |
|
|
$ |
16,807 |
|
|
$ |
21,385 |
|
|
$ |
16,807 |
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses on
unfunded commitments at beginning of the period |
$ |
1,285 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Impact of adoption of ASC
326 |
|
— |
|
|
|
1,285 |
|
|
|
— |
|
|
|
1,285 |
|
|
|
— |
|
Provision for credit losses on
unfunded commitments |
|
210 |
|
|
|
— |
|
|
|
— |
|
|
|
210 |
|
|
|
— |
|
Balance at the end of the
period |
$ |
1,495 |
|
|
$ |
1,285 |
|
|
$ |
— |
|
|
$ |
1,495 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
Allowance to loans, net of
unearned income |
|
1.25 |
% |
|
|
1.21 |
% |
|
|
1.18 |
% |
|
|
1.25 |
% |
|
|
1.18 |
% |
Allowance to gross loans |
|
1.24 |
% |
|
|
1.20 |
% |
|
|
1.17 |
% |
|
|
1.24 |
% |
|
|
1.17 |
% |
Net charge-offs (recoveries)
to average loans, net of unearned income(1) |
|
0.01 |
% |
|
|
0.05 |
% |
|
|
— |
% |
|
|
0.03 |
% |
|
|
0.01 |
% |
Provision for credit losses to
average loans, net of unearned income(1) |
|
0.37 |
% |
|
|
0.30 |
% |
|
|
0.38 |
% |
|
|
0.34 |
% |
|
|
0.31 |
% |
|
|
|
|
|
|
|
|
|
|
(1) Ratio is annualized.
Reconciliation of Non-GAAP Financial Measures |
In addition to reporting GAAP results, the
Company reports non-GAAP financial measures in this earnings
release and other disclosures. Our management believes that these
non-GAAP financial measures and the information they provide are
useful to investors since these measures permit investors to view
our performance using the same tools that our management uses to
evaluate our performance. While we believe that these non-GAAP
financial measures are useful in evaluating our performance, this
information should be considered as supplemental in nature and not
as a substitute for or superior to the related financial
information prepared in accordance with GAAP. Additionally, these
non-GAAP financial measures may differ from similar measures
presented by other companies.
The following table provides a reconciliation of
the non-GAAP financial measures to their most directly comparable
financial measure presented in accordance with GAAP.
Reconciliation of Non-GAAP Financial Measures |
(Dollars in thousands, except share and per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
June 30,2023 |
|
March 31,2023 |
|
June 30,2022 |
|
June 30,2023 |
|
June 30,2022 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
8,756 |
|
|
$ |
7,671 |
|
|
$ |
5,223 |
|
|
$ |
16,427 |
|
|
$ |
9,780 |
|
Add: One-time retirement
related expenses |
|
1,571 |
|
|
|
— |
|
|
|
— |
|
|
|
1,571 |
|
|
|
— |
|
Add: Professional fees related
to ERC |
|
1,243 |
|
|
|
— |
|
|
|
— |
|
|
|
1,243 |
|
|
|
— |
|
Add: Net OREO gains |
|
7 |
|
|
|
— |
|
|
|
— |
|
|
|
7 |
|
|
|
— |
|
Less: Employee retention
related revenue |
|
5,100 |
|
|
|
— |
|
|
|
— |
|
|
|
5,100 |
|
|
|
— |
|
Less: Gain (loss) on
securities |
|
(45 |
) |
|
|
514 |
|
|
|
(42 |
) |
|
|
469 |
|
|
|
(403 |
) |
Less: Tax effect |
|
(536 |
) |
|
|
(123 |
) |
|
|
10 |
|
|
|
(660 |
) |
|
|
97 |
|
Core net
income |
$ |
7,058 |
|
|
$ |
7,280 |
|
|
$ |
5,255 |
|
|
$ |
14,339 |
|
|
$ |
10,086 |
|
Average assets |
$ |
2,200,843 |
|
|
$ |
2,057,005 |
|
|
$ |
1,821,437 |
|
|
$ |
2,129,328 |
|
|
$ |
1,804,321 |
|
Core return on average
assets |
|
1.29 |
% |
|
|
1.44 |
% |
|
|
1.16 |
% |
|
|
1.36 |
% |
|
|
1.13 |
% |
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
8,756 |
|
|
$ |
7,671 |
|
|
$ |
5,223 |
|
|
$ |
16,427 |
|
|
$ |
9,780 |
|
Add: One-time retirement
related expenses |
|
1,571 |
|
|
|
— |
|
|
|
— |
|
|
|
1,571 |
|
|
|
— |
|
Add: Professional fees related
to ERC |
|
1,243 |
|
|
|
— |
|
|
|
— |
|
|
|
1,243 |
|
|
|
— |
|
Add: Net OREO gains |
|
7 |
|
|
|
— |
|
|
|
— |
|
|
|
7 |
|
|
|
— |
|
Add: Provision |
|
1,557 |
|
|
|
1,181 |
|
|
|
1,304 |
|
|
|
2,738 |
|
|
|
2,004 |
|
Less: Employee retention
related revenue |
|
5,100 |
|
|
|
— |
|
|
|
— |
|
|
|
5,100 |
|
|
|
— |
|
Less: Gain (loss) on
securities |
|
(45 |
) |
|
|
514 |
|
|
|
(42 |
) |
|
|
469 |
|
|
|
(403 |
) |
Add: Income taxes |
|
2,549 |
|
|
|
2,322 |
|
|
|
1,590 |
|
|
|
4,871 |
|
|
|
3,030 |
|
Pretax pre-provision
core net income |
$ |
10,628 |
|
|
$ |
10,660 |
|
|
$ |
8,159 |
|
|
$ |
21,288 |
|
|
$ |
15,217 |
|
Average assets |
$ |
2,200,843 |
|
|
$ |
2,057,005 |
|
|
$ |
1,821,437 |
|
|
$ |
2,129,328 |
|
|
$ |
1,804,321 |
|
Pretax pre-provision
core return on average assets |
|
1.94 |
% |
|
|
2.10 |
% |
|
|
1.80 |
% |
|
|
2.02 |
% |
|
|
1.70 |
% |
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
19,432 |
|
|
$ |
19,546 |
|
|
$ |
16,365 |
|
|
$ |
38,978 |
|
|
$ |
31,019 |
|
Add: Fully-taxable equivalent
adjustments(1) |
|
65 |
|
|
|
85 |
|
|
|
83 |
|
|
|
143 |
|
|
|
161 |
|
Net interest income -
FTE |
$ |
19,497 |
|
|
$ |
19,631 |
|
|
$ |
16,448 |
|
|
$ |
39,121 |
|
|
$ |
31,180 |
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
3.73 |
% |
|
|
4.07 |
% |
|
|
3.84 |
% |
|
|
3.89 |
% |
|
|
3.69 |
% |
Effect of fully-taxable
equivalent adjustments(1) |
|
0.01 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
Net interest margin -
FTE |
|
3.74 |
% |
|
|
4.09 |
% |
|
|
3.86 |
% |
|
|
3.90 |
% |
|
|
3.70 |
% |
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity |
$ |
197,249 |
|
|
$ |
189,663 |
|
|
$ |
167,947 |
|
|
$ |
197,249 |
|
|
$ |
167,947 |
|
Less: Intangible assets |
|
17,924 |
|
|
|
18,006 |
|
|
|
18,230 |
|
|
|
17,924 |
|
|
|
18,230 |
|
Tangible common
equity |
$ |
179,325 |
|
|
$ |
171,657 |
|
|
$ |
149,717 |
|
|
$ |
179,325 |
|
|
$ |
149,717 |
|
|
|
|
|
|
|
|
|
|
|
(1) Assumes a 24.0% tax rate. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures |
(Dollars in thousands, except share and per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
June 30,2023 |
|
March 31,2023 |
|
June 30,2022 |
|
June 30,2023 |
|
June 30,2022 |
|
|
|
|
|
|
|
|
|
Core net income |
$ |
7,058 |
|
|
$ |
7,280 |
|
|
$ |
5,255 |
|
|
$ |
14,339 |
|
|
$ |
10,086 |
|
Diluted weighted average
shares outstanding |
|
8,950,847 |
|
|
|
9,044,490 |
|
|
|
8,894,577 |
|
|
|
9,001,600 |
|
|
|
8,960,565 |
|
Diluted core earnings
per share |
$ |
0.79 |
|
|
$ |
0.80 |
|
|
$ |
0.59 |
|
|
$ |
1.59 |
|
|
$ |
1.13 |
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding at
year or period end |
|
8,738,814 |
|
|
|
8,723,763 |
|
|
|
8,691,620 |
|
|
|
8,738,814 |
|
|
|
8,691,620 |
|
Tangible book value
per share |
$ |
20.52 |
|
|
$ |
19.68 |
|
|
$ |
17.23 |
|
|
$ |
20.52 |
|
|
$ |
17.23 |
|
|
|
|
|
|
|
|
|
|
|
Total assets at end of
period |
$ |
2,277,803 |
|
|
$ |
2,135,622 |
|
|
$ |
1,902,495 |
|
|
$ |
2,277,803 |
|
|
$ |
1,902,495 |
|
Less: Intangible assets |
|
17,924 |
|
|
|
18,006 |
|
|
|
18,230 |
|
|
|
17,924 |
|
|
|
18,230 |
|
Adjusted assets at end of
period |
$ |
2,259,879 |
|
|
$ |
2,117,616 |
|
|
$ |
1,884,265 |
|
|
$ |
2,259,879 |
|
|
$ |
1,884,265 |
|
Tangible common equity
to tangible assets |
|
7.94 |
% |
|
|
8.11 |
% |
|
|
7.95 |
% |
|
|
7.94 |
% |
|
|
7.95 |
% |
|
|
|
|
|
|
|
|
|
|
Total average shareholders
equity |
$ |
193,516 |
|
|
$ |
186,639 |
|
|
$ |
170,038 |
|
|
$ |
190,096 |
|
|
$ |
173,621 |
|
Less: Average intangible
assets |
|
17,974 |
|
|
|
18,055 |
|
|
|
18,270 |
|
|
|
18,014 |
|
|
|
18,304 |
|
Average tangible common
equity |
$ |
175,542 |
|
|
$ |
168,584 |
|
|
$ |
151,768 |
|
|
$ |
172,082 |
|
|
$ |
155,317 |
|
Net income to common
shareholders |
$ |
8,756 |
|
|
$ |
7,671 |
|
|
$ |
5,223 |
|
|
$ |
16,427 |
|
|
$ |
9,780 |
|
Return on average
tangible common equity |
|
20.01 |
% |
|
|
18.45 |
% |
|
|
13.80 |
% |
|
|
19.25 |
% |
|
|
12.70 |
% |
Average tangible common
equity |
$ |
175,542 |
|
|
$ |
168,584 |
|
|
$ |
151,768 |
|
|
$ |
172,082 |
|
|
$ |
155,317 |
|
Core net income |
$ |
7,058 |
|
|
$ |
7,280 |
|
|
$ |
5,255 |
|
|
$ |
14,339 |
|
|
$ |
10,086 |
|
Core return on average
tangible common equity |
|
16.13 |
% |
|
|
17.51 |
% |
|
|
13.89 |
% |
|
|
16.80 |
% |
|
|
13.10 |
% |
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
19,432 |
|
|
$ |
19,546 |
|
|
$ |
16,365 |
|
|
$ |
38,978 |
|
|
$ |
31,019 |
|
Add: Noninterest income |
|
6,862 |
|
|
|
1,786 |
|
|
|
1,404 |
|
|
|
8,648 |
|
|
|
2,737 |
|
Less: Employee retention
related revenue |
|
5,100 |
|
|
|
— |
|
|
|
— |
|
|
|
5,100 |
|
|
|
— |
|
Less: Gain (loss) on
securities |
|
(45 |
) |
|
|
514 |
|
|
|
(42 |
) |
|
|
469 |
|
|
|
(403 |
) |
Operating revenue |
$ |
21,239 |
|
|
$ |
20,818 |
|
|
$ |
17,811 |
|
|
$ |
42,057 |
|
|
$ |
34,159 |
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
Total noninterest expense |
$ |
13,432 |
|
|
$ |
10,158 |
|
|
$ |
9,652 |
|
|
$ |
23,590 |
|
|
$ |
18,942 |
|
Less: One-time retirement
related expenses |
|
1,571 |
|
|
|
— |
|
|
|
— |
|
|
|
1,571 |
|
|
|
— |
|
Less: Professional fees
related to ERC |
|
1,243 |
|
|
|
— |
|
|
|
— |
|
|
|
1,243 |
|
|
|
— |
|
Less: Net OREO gains |
|
7 |
|
|
|
— |
|
|
|
— |
|
|
|
7 |
|
|
|
— |
|
Adjusted noninterest
expenses |
$ |
10,611 |
|
|
$ |
10,158 |
|
|
$ |
9,652 |
|
|
$ |
20,769 |
|
|
$ |
18,942 |
|
Core efficiency
ratio |
|
49.96 |
% |
|
|
48.79 |
% |
|
|
54.19 |
% |
|
|
49.38 |
% |
|
|
55.45 |
% |
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