Level One Bancorp, Inc. (“Level One”) (Nasdaq: LEVL) today reported
its financial results for the second quarter of 2021, which
included net income of $7.0 million, or $0.84 diluted earnings per
common share. This compares to net income of $2.7 million, or $0.35
diluted earnings per common share, in the second quarter of 2020.
Patrick J. Fehring, Chief Executive Officer of
Level One, commented, "We are excited about the opportunities
before us as the economy recovers from the effects of the pandemic.
Level One is well positioned in attractive markets with a stronger
balance sheet, liquidity to support lending activities, and a
growing team of talented bankers. During the second quarter of
2021, Level One Bank experienced loan growth (excluding a decrease
of $146.5 million in Paycheck Protection Program ("PPP") loans) of
$60.0 million, or 16.5% annualized. As the economy has fully
reopened, Level One has been well positioned to meet the credit
needs of the communities we serve as evidenced by the growth in
business and retail loans. Additionally, during the quarter our
credit quality metrics remained sound as we have worked closely
with our clients as they navigate the economic recovery."
He continued, "I am pleased to report a solid
second quarter for Level One with earnings of $7.0 million, or
$0.84 diluted earnings per common share. This quarter’s results
compare favorably to second quarter 2020 earnings of $2.7 million,
or $0.35 diluted earnings per common share. Earnings for the first
six months of 2021 were $15.9 million, or $1.94 diluted earnings
per common share, compared with earnings of $6.8 million, or $0.88
diluted earnings per common share, for the first six months of
2020."
He concluded, "Finally, the Level One team
worked diligently to implement the second round of PPP loans. Our
participation in the second round of the PPP program provided over
$234 million in loans to 1,531 small business in our communities.
When combined with the first round of PPP in 2020, Level One Bank
funded over $651 million in PPP loans. With these loans, the Level
One Bank has provided both small businesses and their team members
protection from the economic challenges of the COVID-19
pandemic."
Second Quarter 2021
Highlights
- Total loans, excluding a decrease of $146.5 million of PPP
loans, increased $60.0 million, or 16.5% annualized during the
second quarter of 2021
- Total loans decreased 4.64% to $1.78 billion at June 30, 2021,
compared to $1.86 billion at March 31, 2021
- Total assets decreased 2.57% to $2.51 billion at June 30, 2021,
compared to $2.57 billion at March 31, 2021
- Total deposits decreased 2.97% to $2.03 billion at June 30,
2021, compared to $2.09 billion at March 31, 2021
- Total subordinated debt decreased 33.52% to $29.7 million at
June 30, 2021, compared to $44.6 million at March 31, 2021
- Book value per common share increased 4.25% to $26.48 per
common share at June 30, 2021, compared to $25.40 per common share
at March 31, 2021
- Tangible book value per common share increased 5.36% to $20.84
per common share at June 30, 2021, compared to $19.78 per common
share at March 31, 2021
- Net income of $7.0 million decreased 22.10% from $9.0 million
in the preceding quarter
- Diluted earnings per common share of $0.84 decreased 23.64%
compared to $1.10 in the preceding quarter
- Net interest margin, on a fully taxable equivalent ("FTE")
basis, was 3.30%, compared to 3.33% in the preceding quarter and
2.98% in the second quarter of 2020
- Noninterest income decreased $3.0 million to $4.3 million in
the second quarter of 2021, compared to $7.3 million in the
preceding quarter
- Noninterest expense decreased $551 thousand to $14.6 million in
the second quarter of 2021, compared to $15.1 million in the
preceding quarter
- Provision for loan loss increased $275 thousand to $540
thousand in the second quarter of 2021, compared to $265 thousand
in the preceding quarter
Net Interest Income and Net Interest Margin
Level One's net interest income increased $459
thousand, or 2.40%, to $19.6 million in the second quarter of 2021,
compared to $19.2 million in the preceding quarter, and increased
$3.4 million, or 20.84%, compared to $16.2 million in the second
quarter of 2020. The increase in net interest income compared to
the preceding quarter was primarily due to a decrease of $296
thousand in interest expense on deposits and an increase of $145
thousand of interest income on investment securities. The increase
in net interest income compared to the second quarter of 2020 was
primarily due to increases of $988 thousand of interest income on
loans as a result of the accelerated recognition of fees on PPP
loans that were forgiven and $354 thousand of interest income on
investment securities due to the increased volumes of investment
securities. In addition, between the second quarter of 2020 and the
second quarter of 2021, interest expense on deposits decreased $1.8
million and interest expense on borrowed funds decreased $168
thousand. The decrease in interest expense on deposits was
primarily due to lower interest rates paid as a result of revised
internal deposit rates, mainly driven by a decrease in the target
federal funds rate.
Level One’s net interest margin, on a FTE basis,
was 3.30% in the second quarter of 2021, compared to 3.33% in the
preceding quarter and 2.98% in the second quarter of 2020. The
increase in the net interest margin year over year was primarily a
result of a decrease in the cost of interest-bearing liabilities,
which declined 54 basis points to 0.55% in the second quarter of
2021, compared to 1.09% in the second quarter of 2020 primarily due
to lower interest rates paid as a result of revised internal
deposit rates, mainly driven by the decreases in the target federal
funds rate.
Noninterest Income
Level One's noninterest income decreased $3.0
million, or 40.56%, to $4.3 million in the second quarter of 2021,
compared to $7.3 million in the preceding quarter, and decreased
$3.5 million, or 44.94%, compared to $7.8 million in the second
quarter of 2020. The decrease in noninterest income compared to the
preceding quarter was primarily attributable to a decrease of $3.1
million in mortgage banking activities partially offset by an
increase of $145 thousand in other charges and fees. The decrease
in the mortgage banking activities income compared to the preceding
quarter was primarily due to $78.2 million lower residential loan
originations held for sale and $89.4 million lower residential
loans sold primarily as a result of the increase in interest rates
and secondary market pricing. The increase in other charges and
fees was primarily due to increases in bank owned life insurance
interest income and interest rate swap fees.
The decrease in noninterest income in the second
quarter of 2021 compared to the same period in 2020 was primarily
due to decreases of $3.0 million in mortgage banking activities and
$899 thousand in net gains on sales of investment securities. This
was partially offset by increases of $252 thousand in service
charges on deposits and $157 thousand in other charges and fees.
The decrease in mortgage banking activities compared to the second
quarter of 2020 was primarily due to $55.5 million lower
residential loan originations held for sale and $40.4 million lower
residential loans sold primarily as a result of the increase in
interest rates and secondary market pricing. The decrease in net
gains on sales of investment securities was due to no securities
sold in the second quarter of 2021. The increase in service charges
on deposits was primarily due to higher transaction volumes and
deposit balances. The increase in other charges and fees was
primarily due to increases in Visa Rebate income, interest rate
swap fees, and bank owned life insurance interest income. These
were partially offset by a decrease in gains on sale of other real
estate owned.
Noninterest Expense
Level One's noninterest expense decreased $551
thousand, or 3.64%, to $14.6 million in the second quarter of 2021,
compared to $15.1 million in the preceding quarter, and decreased
$495 thousand, or 3.28%, compared to $15.1 million in the second
quarter of 2020. The decrease in noninterest expense compared to
the preceding quarter was primarily attributable to decreases of
$570 thousand in salary and employee benefits, $167 thousand in
data processing expense, and $138 thousand in loan processing
expense. These decreases were partially offset by increases of $286
thousand in other expense and $148 thousand in marketing expense.
The decrease in salary and employee benefits compared to the first
quarter of 2021 was primarily due to decreases of $591 thousand in
mortgage commissions; $223 thousand in social security, Medicare
and employment taxes related to the decrease in mortgage
commissions; and $124 thousand in incentive compensation. This was
partially offset by a $307 thousand increase in salary expense
primarily due to an increase in full-time equivalent employees. The
decrease in data processing expense was primarily due to a decrease
in PPP loan volumes run through the loan processing system used for
PPP loans. The decrease in loan processing expense was primarily
due to a collection fee on a nonaccrual loan in the first quarter
of 2020. The increase in other expense was primarily due to the
provision on unfunded commitments. The increase in marketing
expense was primarily due to an increase in advertising
efforts.
The decrease in noninterest expense in the
second quarter of 2021 compared to the same period in 2020 was
mainly attributable to decreases of $246 thousand in salary and
employee benefits, $176 thousand in acquisition and due diligence
fees, and $167 thousand in professional service fees. These
decreases were partially offset by an increase of $147 thousand in
data processing expense. The decrease in salary and employee
benefits between the periods was primarily due to decreases of $914
thousand in mortgage commissions expense partially offset by a $339
thousand increase in incentive compensation and a $206 thousand
increase in salaries expense. The decrease in acquisition and due
diligence fees was primarily due to certain post-merger integration
costs incurred in the second quarter of 2020, following the
acquisition of Ann Arbor State Bank. The decrease in professional
service fees was primarily related to decreased residential
mortgage volumes. The increase in data processing fees was
primarily due to the new loan processing system used for PPP
loans.
The efficiency ratio, which is a measure of
operating expenses as a percentage of net interest income and
noninterest income, was 60.93% for the second quarter of 2021,
compared to 57.27% for the preceding quarter and 62.79% in the
second quarter of 2020.
Income Tax Expense
Level One's income tax provision was $1.8
million, or 20.82% of pretax income, in the second quarter of 2021,
as compared to $2.1 million, or 18.78% of pretax income, in the
preceding quarter and $643 thousand, or 19.11% of pretax income, in
the second quarter of 2020.
Loan Portfolio
Total loans were $1.78 billion at June 30, 2021,
a decrease of $86.4 million, or 4.64%, from $1.86 billion at March
31, 2021, and down $40.1 million, or 2.21%, from $1.82 billion at
June 30, 2020. The decrease in total loans compared to March 31,
2021 was primarily due to $160.3 million of PPP loans forgiven by
the SBA during the second quarter partially offset by a net
increase of $60.0 million, or 16.5% annualized growth, in the
remainder of the loan portfolio and $17.5 million of PPP loan
originations from the second round of PPP funding. The decrease in
total loans compared to June 30, 2020, was primarily due to a
$129.0 million net decrease in PPP loans (originated and forgiven)
which was partially offset by a net increase of $88.9 million in
the remainder of the loan portfolio.
Investment Securities
The investment securities portfolio grew $30.2
million, or 8.72%, to $376.5 million at June 30, 2021, from $346.3
million at March 31, 2021, and up $159.3 million, or 73.34%, from
$217.2 million at June 30, 2020. The increase in the investment
securities portfolio compared to March 31, 2021 was primarily due
to the purchase of $36.6 million of investment securities, offset
in part by $3.4 million of sales, calls, or maturity of investment
securities. The increase in investment securities compared to June
30, 2020, was primarily due to the purchase of $197.0 million of
securities between the two dates using the excess cash balances
generated by the payoffs of PPP loans, partially offset by $37.7
million of sales, calls, or maturity of investment securities and
principal pay downs.
Deposits
Total deposits were $2.03 billion at June 30,
2021, a decrease of $62.2 million, or 2.97%, from $2.09 billion at
March 31, 2021, and up $210.5 million, or 11.55%, from $1.82
billion at June 30, 2020. The decrease in deposits compared to
March 31, 2021 was primarily due to runoff related to deposit
pricing opportunities. The growth in deposits compared to June 30,
2020 was primarily due to organic deposit growth as a result of
customers increasing their liquidity due to PPP loan proceeds and
government stimulus payments. Total deposit composition at June 30,
2021 consisted of 43.18% of demand deposit accounts, 30.98% of
savings and money market accounts and 25.84% of time deposits.
Borrowings
Total debt outstanding was $212.3 million at
June 30, 2021, a decrease of $18.8 million, or 8.14%, from $231.0
million at March 31, 2021, and down $287.3 million, or 57.50%, from
$499.6 million at June 30, 2020. The decrease in debt outstanding
compared to March 31, 2021 was primarily due to the redemption of
$15.0 million of subordinated notes. The decrease in total
borrowings compared to June 30, 2020 was primarily due to a
decrease of $270.4 million in Federal Reserve Bank borrowings used
for liquidity related to PPP loans as well as the redemption of the
subordinated notes discussed above. The Company would have paid
approximately $721 thousand per year in interest on the redeemed
subordinated notes.
Asset Quality
Nonaccrual loans were $13.7 million, or 0.77% of
total loans, at June 30, 2021, a decrease of $1.7 million from
nonaccrual loans of $15.4 million, or 0.83% of total loans, at
March 31, 2021, and an increase of $5.4 million from nonaccrual
loans of $8.3 million, or 0.46% of total loans, at June 30, 2020.
The decrease in nonaccrual loans compared to the prior quarter-end
was primarily due to $2.1 million of paydowns on four commercial
loan relationships partially offset by two commercial loan
relationships moving to nonaccrual status totaling $726 thousand.
The increase in nonaccrual loans compared to June 30, 2020 was
primarily due to seven commercial loan relationships totaling $7.6
million being transferred to nonaccrual status, partially offset by
a $2.9 million paydown of one commercial loan relationship.
Nonperforming assets, consisting of nonaccrual
loans and other real estate owned, as a percentage of total assets
were 0.55% at June 30, 2021, compared to 0.60% at March 31, 2021,
and 0.33% at June 30, 2020.
Performing troubled debt restructured loans,
which are not reported as nonaccrual loans but rather as part of
impaired loans, were $765 thousand at June 30, 2021 and March 31,
2021, and $1.1 million at June 30, 2020. Loans to borrowers who are
in financial difficulty and who have been granted concessions that
may include interest rate reductions, forbearance agreements, and
principal deferral or reduction, are categorized as troubled debt
restructured loans. In accordance with bank regulatory guidance,
troubled debt restructurings do not include short-term
modifications made on a good-faith basis in response to the
COVID-19 pandemic to borrowers who were current prior to any
relief. As of June 30, 2021, there were $7.5 million of loans that
remained on a COVID-related deferral compared to $22.2 million as
of March 31, 2021. As of June 30, 2021, $7.4 million of those loans
had payments deferred greater than six months compared to $10.7
million as of March 31, 2021.
Net recoveries in the second quarter of 2021
were $26 thousand, or 0.01% of average loans on an annualized
basis, compared to $17 thousand of net recoveries for the preceding
quarter and $1.5 million of net charge-offs, or 0.34% of average
loans on an annualized basis, in the second quarter of 2020. The
change between the second quarter of 2021 and the second quarter of
2020 was primarily due to a $1.3 million charge-off on one
commercial loan relationship in the second quarter of 2020.
Level One's provision for loan losses in the
second quarter of 2021 was a provision expense of $540 thousand,
compared to $265 thousand in the preceding quarter and $5.6 million
in the second quarter of 2020. The increase in the provision
expense quarter over quarter was primarily due to an increase of
$533 thousand in general reserves as a result of an increase in
loan volumes excluding PPP loans, partially offset by a decrease in
specific reserves of $254 thousand. The decrease in the provision
expense in the second quarter of 2021 compared to the same period
in 2020 was primarily due to a decrease in general reserves of $3.2
million resulting from an adjustment of the economic qualitative
factors in the second quarter of 2020, a decrease of $1.5 million
in net charge-offs due to the charge-off mentioned above in the
second quarter of 2020 as well as a $259 thousand decrease in
specific reserves. The Company will continue to evaluate the fluid
situation in regard to the COVID-19 pandemic and will take further
action to appropriately record additional provision for loan losses
or decrease the level of the provision for loan losses should there
be any indications of significant changes in the credit quality of
our portfolio as a result of the COVID-19 pandemic.
The allowance for loan losses was $23.1 million,
or 1.30% of total loans, at June 30, 2021, compared to $22.6
million, or 1.21% of total loans, at March 31, 2021, and $17.1
million, or 0.94% of total loans, at June 30, 2020. Excluding PPP
loans of $259.3 million, $405.8 million, and $388.3 million as of
these dates respectively, the allowance for loan losses as a
percentage of total loans was 1.53% as of June 30, 2021, compared
to 1.55% as of March 31, 2021 and 1.20% as of June 30, 2020 (see
section entitled "GAAP Reconciliation of Non-GAAP Financial
Measures" for further details). The allowance for loan losses as a
percentage of total loans increased compared to June 30, 2020,
primarily due to the trends in delinquencies and nonaccrual loans
as well as the stress on the commercial and industrial and
commercial real estate owner occupied portfolios, primarily in the
restaurant and transportation industries, as a result of the
uncertainty surrounding the COVID-19 pandemic. As of June 30, 2021,
the allowance for loan losses as a percentage of nonaccrual loans
was 168.64%, compared to 146.95% at March 31, 2021, and 206.37% at
June 30, 2020. The Company will continue to evaluate the
appropriateness of the allowance for loan losses in future quarters
as needed.
Capital
Total shareholders’ equity was $225.4 million at
June 30, 2021, an increase of $8.2 million, or 3.79%, compared with
$217.2 million at March 31, 2021 primarily as a result of increases
in retained earnings and accumulated other comprehensive income.
Total shareholders' equity increased $45.1 million, or 25.05%, from
$180.3 million at June 30, 2020, attributable to an increase in
retained earnings as well as the issuance of preferred stock in the
third quarter of 2020.
Recent Developments
Second Quarter Common Stock
Dividend: On June 16, 2021, Level One’s
Board of Directors declared a quarterly cash dividend of $0.06 per
share. This dividend was paid on July 15, 2021, to stockholders of
record at the close of business on June 30, 2021.
Third Quarter Preferred Stock
Dividend: On July 21, 2021, Level One’s Board of Directors
declared a quarterly cash dividend of $46.88 per share on its 7.50%
Non-Cumulative Perpetual Preferred Stock, Series B. Holders of
depositary shares will receive $0.4688 per depositary share. The
dividend is payable on August 15, 2021, to shareholders of record
at the close of business on July 31, 2021.
Level One's Response to the COVID-19
Pandemic: Level One has taken
comprehensive steps to help our customers, team members and
communities during the current COVID-19 pandemic health crisis. For
our customers, we have provided loan payment deferrals and offered
fee waivers, among other actions. In addition, from January 18
through June 30, 2021, Level One has funded 1,531 PPP loans for
$234.2 million of which 1,186 applications were for loans $150,000
or below.
We are continuing to enable the vast majority of
our main office team members to work remotely each day. We have
also taken significant actions to help ensure the safety of our
team members whose roles require them to come into the office,
which includes the development, implementation and communication of
protocols necessary for those who return. As of March 31, 2021, we
opened branches for walk in services. We will continue to evaluate
this fluid situation and take additional actions as necessary.
About Level One Bancorp, Inc.
Level One Bancorp, Inc. is the holding company
for Level One Bank, a full-service commercial and consumer bank
headquartered in Michigan with assets of approximately $2.51
billion as of June 30, 2021. It operates sixteen banking centers
throughout Metro Detroit, Ann Arbor, Grand Rapids, and Jackson and
provides a variety of commercial, small business, and consumer
banking services. Level One Bank's success has been recognized both
locally and nationally as the U.S. Small Business Administration's
(SBA) "Community Lender of the Year," one of American Banker
Magazine's "Top 200 Community Banks in the Nation," one of Metro
Detroit's "Best & Brightest Companies to Work For" and more.
Level One Bank’s business banking division provides a broad
spectrum of products including lines of credit, term loans, leases,
commercial mortgages, SBA loans, MEDC loans, export-import
financing, and a full suite of treasury management services. The
consumer banking division offers a range of personal checking,
savings and CD products and a complete array of consumer loan
products including residential mortgages, new construction and
renovation loans, home equity lines of credit, auto loans, and
credit card services. Level One Bank offers a variety of digital
banking services including online banking, robust mobile banking
apps, online account opening and online loan applications for
individuals and businesses. Level One Bank offers the
sophistication of a big bank, the heart of a community bank, and
the spirit of an entrepreneur. For more information, visit
www.levelonebank.com.
Forward-Looking Statements
This release contains "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 that reflect management’s current views of
future events and operations. These forward-looking statements are
based on the information currently available to the Company as of
the date of this release. Forward-looking statements generally can
be identified by the use of forward-looking terminology such as
"will," "propose," "may," "plan," "seek," "expect," "intend,"
"estimate," "anticipate," "believe," "continue," "annualized" or
similar technology. It is important to note that these
forward-looking statements are not guarantees of future performance
and involve risk and uncertainties, including, but not limited to,
the effects of the COVID-19 pandemic, including its effects on the
economic environment, our customers and our operations, as well as
any changes to federal, state or local government laws, regulations
or orders in connection with the pandemic, the ability of the
Company to implement its strategy and expand its lending
operations, changes in interest rates and other general economic,
business and political conditions, including changes in the
financial markets, changes in benchmark interest rates used to
price loans and deposits including the expected elimination of
LIBOR, and changes in tax laws, regulations and guidance, as well
as other risks described in the Company's filings with the
Securities and Exchange Commission. The Company does not undertake
any obligation to update or revise any forward-looking statements
to reflect changes in assumptions, the occurrence of unanticipated
events, or otherwise.
Summary Consolidated
Financial Information |
|
|
|
|
|
|
|
|
|
(Unaudited) |
As of or for the three months ended, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(Dollars in thousands, except per share data) |
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
Earnings Summary |
|
|
|
|
|
|
|
|
|
Interest income |
$ |
21,737 |
|
|
$ |
21,551 |
|
|
$ |
22,181 |
|
|
$ |
20,245 |
|
|
$ |
20,396 |
|
Interest expense |
2,121 |
|
|
2,394 |
|
|
3,075 |
|
|
3,648 |
|
|
4,163 |
|
Net interest income |
19,616 |
|
|
19,157 |
|
|
19,106 |
|
|
16,597 |
|
|
16,233 |
|
Provision for loan losses |
540 |
|
|
265 |
|
|
1,538 |
|
|
4,270 |
|
|
5,575 |
|
Noninterest income |
4,326 |
|
|
7,278 |
|
|
8,110 |
|
|
9,125 |
|
|
7,789 |
|
Noninterest expense |
14,588 |
|
|
15,139 |
|
|
15,461 |
|
|
15,126 |
|
|
15,083 |
|
Income before income
taxes |
8,814 |
|
|
11,031 |
|
|
10,217 |
|
|
6,326 |
|
|
3,364 |
|
Income tax provision |
1,835 |
|
|
2,072 |
|
|
1,844 |
|
|
1,117 |
|
|
643 |
|
Net income |
$ |
6,979 |
|
|
$ |
8,959 |
|
|
$ |
8,373 |
|
|
$ |
5,209 |
|
|
$ |
2,721 |
|
Preferred stock dividends |
469 |
|
|
469 |
|
|
479 |
|
|
— |
|
|
— |
|
Net income available to common
shareholders |
6,510 |
|
|
8,490 |
|
|
7,894 |
|
|
5,209 |
|
|
2,721 |
|
Net income allocated to
participating securities |
92 |
|
|
111 |
|
|
65 |
|
|
40 |
|
|
19 |
|
Net income attributable to
common shareholders |
$ |
6,418 |
|
|
$ |
8,379 |
|
|
$ |
7,829 |
|
|
$ |
5,169 |
|
|
$ |
2,702 |
|
Per Share
Data |
|
|
|
|
|
|
|
|
|
Basic earnings per common
share |
$ |
0.85 |
|
|
$ |
1.11 |
|
|
$ |
1.02 |
|
|
$ |
0.68 |
|
|
$ |
0.35 |
|
Diluted earnings per common
share |
0.84 |
|
|
1.10 |
|
|
1.02 |
|
|
0.67 |
|
|
0.35 |
|
Diluted earnings per common
share, excluding acquisition and due diligence fees (1) |
0.84 |
|
|
1.10 |
|
|
1.02 |
|
|
0.67 |
|
|
0.37 |
|
Book value per common
share |
26.48 |
|
|
25.40 |
|
|
25.14 |
|
|
24.06 |
|
|
23.31 |
|
Tangible book value per common
share (1) |
20.84 |
|
|
19.78 |
|
|
19.63 |
|
|
18.74 |
|
|
18.09 |
|
Preferred shares outstanding
(in thousands) |
10 |
|
|
10 |
|
|
10 |
|
|
10 |
|
|
— |
|
Common shares outstanding (in
thousands) |
7,629 |
|
|
7,630 |
|
|
7,634 |
|
|
7,734 |
|
|
7,734 |
|
Average basic common shares
(in thousands) |
7,520 |
|
|
7,528 |
|
|
7,642 |
|
|
7,675 |
|
|
7,676 |
|
Average diluted common shares
(in thousands) |
7,633 |
|
|
7,612 |
|
|
7,695 |
|
|
7,712 |
|
|
7,721 |
|
Selected Period End
Balances |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
2,506,523 |
|
|
$ |
2,572,726 |
|
|
$ |
2,442,982 |
|
|
$ |
2,446,447 |
|
|
$ |
2,541,696 |
|
Securities
available-for-sale |
376,453 |
|
|
346,266 |
|
|
302,732 |
|
|
253,527 |
|
|
217,172 |
|
Total loans |
1,775,243 |
|
|
1,861,691 |
|
|
1,723,537 |
|
|
1,843,888 |
|
|
1,815,353 |
|
Total deposits |
2,031,808 |
|
|
2,093,965 |
|
|
1,963,312 |
|
|
1,943,435 |
|
|
1,821,351 |
|
Total liabilities |
2,281,114 |
|
|
2,355,539 |
|
|
2,227,655 |
|
|
2,236,979 |
|
|
2,361,437 |
|
Total shareholders'
equity |
225,409 |
|
|
217,187 |
|
|
215,327 |
|
|
209,468 |
|
|
180,259 |
|
Total common shareholders'
equity |
202,037 |
|
|
193,815 |
|
|
191,955 |
|
|
186,098 |
|
|
180,259 |
|
Tangible common shareholders'
equity (1) |
159,022 |
|
|
150,887 |
|
|
149,844 |
|
|
144,963 |
|
|
139,913 |
|
Performance and
Capital Ratios |
|
|
|
|
|
|
|
|
|
Return on average assets
(annualized) |
1.09 |
% |
|
1.44 |
% |
|
1.35 |
% |
|
0.83 |
% |
|
0.46 |
% |
Return on average equity
(annualized) |
12.52 |
|
|
16.31 |
|
|
15.61 |
|
|
10.48 |
|
|
6.02 |
|
Net interest margin (fully
taxable equivalent)(2) |
3.30 |
|
|
3.33 |
|
|
3.27 |
|
|
2.80 |
|
|
2.98 |
|
Efficiency ratio (noninterest
expense/net interest income plus noninterest income) |
60.93 |
|
|
57.27 |
|
|
56.81 |
|
|
58.81 |
|
|
62.79 |
|
Dividend payout ratio |
7.02 |
|
|
4.50 |
|
|
4.90 |
|
|
7.41 |
|
|
14.22 |
|
Total shareholders' equity to
total assets |
8.99 |
|
|
8.44 |
|
|
8.81 |
|
|
8.56 |
|
|
7.09 |
|
Tangible common equity to
tangible assets (1) |
6.46 |
|
|
5.96 |
|
|
6.24 |
|
|
6.03 |
|
|
5.59 |
|
Common equity tier 1 to
risk-weighted assets |
9.66 |
|
|
9.63 |
|
|
9.30 |
|
|
8.83 |
|
|
8.76 |
|
Tier 1 capital to
risk-weighted assets |
11.09 |
|
|
11.11 |
|
|
10.80 |
|
|
10.31 |
|
|
8.76 |
|
Total capital to risk-weighted
assets |
14.15 |
|
|
15.18 |
|
|
14.91 |
|
|
14.39 |
|
|
12.81 |
|
Tier 1 capital to average
assets (leverage ratio) |
7.24 |
|
|
7.15 |
|
|
6.93 |
|
|
7.17 |
|
|
6.21 |
|
Asset Quality
Ratios: |
|
|
|
|
|
|
|
|
|
Net charge-offs (recoveries)
to average loans |
(0.01 |
)% |
|
— |
% |
|
0.11 |
% |
|
0.02 |
% |
|
0.34 |
% |
Nonperforming assets as a
percentage of total assets |
0.55 |
|
|
0.60 |
|
|
0.77 |
|
|
0.79 |
|
|
0.33 |
|
Nonaccrual loans as a percent
of total loans |
0.77 |
|
|
0.83 |
|
|
1.09 |
|
|
1.04 |
|
|
0.46 |
|
Allowance for loan losses as a
percentage of total loans |
1.30 |
|
|
1.21 |
|
|
1.29 |
|
|
1.15 |
|
|
0.94 |
|
Allowance for loan losses as a
percentage of nonaccrual loans |
168.64 |
|
|
146.95 |
|
|
118.50 |
|
|
110.32 |
|
|
206.37 |
|
Allowance for loan losses as a
percentage of nonaccrual loans, excluding allowance allocated to
loans accounted for under ASC 310-30 |
163.76 |
|
|
142.62 |
|
|
114.95 |
|
|
105.46 |
|
|
195.04 |
|
(1) See section entitled "GAAP Reconciliation of Non-GAAP
Financial Measures" below.(2) Presented on a tax equivalent basis
using a 21% tax rate.
Consolidated Balance
Sheets |
|
|
|
|
|
|
As of |
|
June 30, |
|
March 31, |
|
June 30, |
(Dollars in thousands) |
2021 |
|
2021 |
|
2020 |
Assets |
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Cash and cash equivalents |
$ |
218,366 |
|
|
|
$ |
224,683 |
|
|
|
$ |
364,112 |
|
|
Securities
available-for-sale |
376,453 |
|
|
|
346,266 |
|
|
|
217,172 |
|
|
Other investments |
14,398 |
|
|
|
14,398 |
|
|
|
12,398 |
|
|
Mortgage loans held for sale,
at fair value |
9,305 |
|
|
|
19,550 |
|
|
|
24,557 |
|
|
Loans: |
|
|
|
|
|
Originated loans |
1,580,175 |
|
|
|
1,647,847 |
|
|
|
1,558,955 |
|
|
Acquired loans |
195,068 |
|
|
|
213,844 |
|
|
|
256,398 |
|
|
Total loans |
1,775,243 |
|
|
|
1,861,691 |
|
|
|
1,815,353 |
|
|
Less: Allowance for loan losses |
(23,144 |
) |
|
|
(22,578 |
) |
|
|
(17,063 |
) |
|
Net loans |
1,752,099 |
|
|
|
1,839,113 |
|
|
|
1,798,290 |
|
|
Premises and equipment,
net |
15,524 |
|
|
|
15,523 |
|
|
|
15,882 |
|
|
Goodwill |
35,554 |
|
|
|
35,554 |
|
|
|
35,554 |
|
|
Mortgage servicing rights,
net |
4,599 |
|
|
|
4,346 |
|
|
|
1,213 |
|
|
Other intangible assets,
net |
2,862 |
|
|
|
3,028 |
|
|
|
3,579 |
|
|
Other real estate owned |
— |
|
|
|
— |
|
|
|
61 |
|
|
Bank-owned life insurance |
29,576 |
|
|
|
18,314 |
|
|
|
17,965 |
|
|
Income tax benefit |
5,491 |
|
|
|
5,823 |
|
|
|
3,293 |
|
|
Interest receivable and other
assets |
42,296 |
|
|
|
46,128 |
|
|
|
47,620 |
|
|
Total assets |
$ |
2,506,523 |
|
|
|
$ |
2,572,726 |
|
|
|
$ |
2,541,696 |
|
|
Liabilities |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest-bearing demand deposits |
$ |
734,451 |
|
|
|
$ |
744,688 |
|
|
|
$ |
644,251 |
|
|
Interest-bearing demand deposits |
142,862 |
|
|
|
140,629 |
|
|
|
119,570 |
|
|
Money market and savings deposits |
629,378 |
|
|
|
652,091 |
|
|
|
472,599 |
|
|
Time deposits |
525,117 |
|
|
|
556,557 |
|
|
|
584,931 |
|
|
Total deposits |
2,031,808 |
|
|
|
2,093,965 |
|
|
|
1,821,351 |
|
|
Borrowings |
182,639 |
|
|
|
186,440 |
|
|
|
455,159 |
|
|
Subordinated notes |
29,651 |
|
|
|
44,600 |
|
|
|
44,457 |
|
|
Other liabilities |
37,016 |
|
|
|
30,534 |
|
|
|
40,470 |
|
|
Total liabilities |
2,281,114 |
|
|
|
2,355,539 |
|
|
|
2,361,437 |
|
|
Shareholders' equity |
|
|
|
|
|
Preferred stock, no par value per share; authorized-50,000 shares;
issued and outstanding - 10,000 shares, with a liquidation
preference of $2,500 per share, at June 30, 2021 and March 31, 2021
and 0 at June 30, 2020 |
23,372 |
|
|
|
23,372 |
|
|
|
— |
|
|
Common stock, no par value per share; authorized - 20,000,000
shares; issued and outstanding - 7,628,944 shares at June 30, 2021,
7,630,342 shares at March 31, 2021 and 7,734,322 shares at June 30,
2020 |
86,723 |
|
|
|
86,529 |
|
|
|
89,175 |
|
|
Retained earnings |
110,243 |
|
|
|
104,191 |
|
|
|
83,824 |
|
|
Accumulated other comprehensive income, net of tax |
5,071 |
|
|
|
3,095 |
|
|
|
7,260 |
|
|
Total shareholders' equity |
225,409 |
|
|
|
217,187 |
|
|
|
180,259 |
|
|
Total liabilities and
shareholders' equity |
$ |
2,506,523 |
|
|
|
$ |
2,572,726 |
|
|
|
$ |
2,541,696 |
|
|
Consolidated
Statements of Income |
|
|
|
|
|
|
|
|
|
(Unaudited) |
Three months ended |
|
Six months ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
(In thousands, except per share data) |
2021 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Interest income |
|
|
|
|
|
|
|
|
|
Originated loans, including
fees |
$ |
17,167 |
|
|
$ |
16,822 |
|
|
$ |
15,317 |
|
|
$ |
33,989 |
|
|
$ |
29,356 |
|
Acquired loans, including
fees |
2,780 |
|
|
3,101 |
|
|
3,642 |
|
|
5,881 |
|
|
7,731 |
|
Securities: |
|
|
|
|
|
|
|
|
|
Taxable |
991 |
|
|
850 |
|
|
594 |
|
|
1,841 |
|
|
1,278 |
|
Tax-exempt |
627 |
|
|
623 |
|
|
670 |
|
|
1,250 |
|
|
1,281 |
|
Federal funds sold and
other |
172 |
|
|
155 |
|
|
173 |
|
|
327 |
|
|
567 |
|
Total interest income |
21,737 |
|
|
21,551 |
|
|
20,396 |
|
|
43,288 |
|
|
40,213 |
|
Interest
Expense |
|
|
|
|
|
|
|
|
|
Deposits |
1,091 |
|
|
1,387 |
|
|
2,884 |
|
|
2,478 |
|
|
6,716 |
|
Borrowed funds |
475 |
|
|
466 |
|
|
643 |
|
|
941 |
|
|
1,173 |
|
Subordinated notes |
555 |
|
|
541 |
|
|
636 |
|
|
1,096 |
|
|
1,271 |
|
Total interest expense |
2,121 |
|
|
2,394 |
|
|
4,163 |
|
|
4,515 |
|
|
9,160 |
|
Net interest income |
19,616 |
|
|
19,157 |
|
|
16,233 |
|
|
38,773 |
|
|
31,053 |
|
Provision expense for loan
losses |
540 |
|
|
265 |
|
|
5,575 |
|
|
805 |
|
|
6,064 |
|
Net interest income
after provision for loan losses |
19,076 |
|
|
18,892 |
|
|
10,658 |
|
|
37,968 |
|
|
24,989 |
|
Noninterest
income |
|
|
|
|
|
|
|
|
|
Service charges on
deposits |
800 |
|
|
777 |
|
|
548 |
|
|
1,577 |
|
|
1,182 |
|
Net gain on sales of
securities |
— |
|
|
20 |
|
|
899 |
|
|
20 |
|
|
1,428 |
|
Mortgage banking
activities |
2,711 |
|
|
5,811 |
|
|
5,684 |
|
|
8,522 |
|
|
8,272 |
|
Other charges and fees |
815 |
|
|
670 |
|
|
658 |
|
|
1,485 |
|
|
1,597 |
|
Total noninterest income |
4,326 |
|
|
7,278 |
|
|
7,789 |
|
|
11,604 |
|
|
12,479 |
|
Noninterest
expense |
|
|
|
|
|
|
|
|
|
Salary and employee
benefits |
9,352 |
|
|
9,922 |
|
|
9,598 |
|
|
19,274 |
|
|
18,228 |
|
Occupancy and equipment
expense |
1,583 |
|
|
1,708 |
|
|
1,567 |
|
|
3,291 |
|
|
3,095 |
|
Professional service fees |
774 |
|
|
643 |
|
|
941 |
|
|
1,417 |
|
|
1,333 |
|
Acquisition and due diligence
fees |
— |
|
|
— |
|
|
176 |
|
|
— |
|
|
1,647 |
|
FDIC premium expense |
210 |
|
|
324 |
|
|
224 |
|
|
534 |
|
|
435 |
|
Marketing expense |
281 |
|
|
133 |
|
|
230 |
|
|
414 |
|
|
452 |
|
Loan processing expense |
193 |
|
|
331 |
|
|
192 |
|
|
524 |
|
|
427 |
|
Data processing expense |
1,057 |
|
|
1,224 |
|
|
910 |
|
|
2,281 |
|
|
1,757 |
|
Core deposit premium
amortization |
166 |
|
|
168 |
|
|
192 |
|
|
334 |
|
|
384 |
|
Other expense |
972 |
|
|
686 |
|
|
1,053 |
|
|
1,658 |
|
|
1,887 |
|
Total noninterest expense |
14,588 |
|
|
15,139 |
|
|
15,083 |
|
|
29,727 |
|
|
29,645 |
|
Income before income
taxes |
8,814 |
|
|
11,031 |
|
|
3,364 |
|
|
19,845 |
|
|
7,823 |
|
Income tax provision |
1,835 |
|
|
2,072 |
|
|
643 |
|
|
3,907 |
|
|
992 |
|
Net income |
6,979 |
|
|
8,959 |
|
|
2,721 |
|
|
15,938 |
|
|
6,831 |
|
Preferred stock dividends |
469 |
|
|
469 |
|
|
— |
|
|
938 |
|
|
— |
|
Net income attributable to common
shareholders |
$ |
6,510 |
|
|
$ |
8,490 |
|
|
$ |
2,721 |
|
|
$ |
15,000 |
|
|
$ |
6,831 |
|
Earnings per common
share: |
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
$ |
0.85 |
|
|
$ |
1.11 |
|
|
$ |
0.35 |
|
|
$ |
1.96 |
|
|
$ |
0.88 |
|
Diluted earnings per common share |
$ |
0.84 |
|
|
$ |
1.10 |
|
|
$ |
0.35 |
|
|
$ |
1.94 |
|
|
$ |
0.88 |
|
Cash dividends declared per common share |
$ |
0.06 |
|
|
$ |
0.06 |
|
|
$ |
0.05 |
|
|
$ |
0.12 |
|
|
$ |
0.10 |
|
Weighted average
common shares outstanding—basic |
7,520 |
|
|
7,528 |
|
|
7,676 |
|
|
7,524 |
|
|
7,636 |
|
Weighted average
common shares outstanding—diluted |
7,633 |
|
|
7,612 |
|
|
7,721 |
|
|
7,623 |
|
|
7,713 |
|
Net
Interest Income and Net Interest Margin |
|
|
|
|
|
|
(Unaudited) |
For the three months ended |
|
For the six months ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
(Dollars in thousands) |
2021 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Average Balance Sheets: |
|
|
|
|
|
|
|
|
|
Gross loans(1) |
$ |
1,853,438 |
|
|
$ |
1,856,030 |
|
|
$ |
1,756,234 |
|
|
$ |
1,854,726 |
|
|
$ |
1,607,565 |
|
Investment securities: (2) |
|
|
|
|
|
|
|
|
|
Taxable |
248,739 |
|
|
214,945 |
|
|
115,271 |
|
|
231,935 |
|
|
116,554 |
|
Tax-exempt |
103,184 |
|
|
102,208 |
|
|
102,955 |
|
|
102,699 |
|
|
98,406 |
|
Interest earning cash balances |
186,186 |
|
|
168,906 |
|
|
226,931 |
|
|
177,594 |
|
|
152,239 |
|
Other investments |
14,398 |
|
|
14,398 |
|
|
12,398 |
|
|
14,398 |
|
|
12,392 |
|
Total interest-earning assets |
$ |
2,405,945 |
|
|
$ |
2,356,487 |
|
|
$ |
2,213,789 |
|
|
$ |
2,381,352 |
|
|
$ |
1,987,156 |
|
Non-earning assets |
147,607 |
|
|
139,100 |
|
|
140,116 |
|
|
143,377 |
|
|
130,640 |
|
Total assets |
$ |
2,553,552 |
|
|
$ |
2,495,587 |
|
|
$ |
2,353,905 |
|
|
$ |
2,524,729 |
|
|
$ |
2,117,796 |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
143,290 |
|
|
132,816 |
|
|
115,176 |
|
|
138,082 |
|
|
110,706 |
|
Money market and savings deposits |
640,471 |
|
|
604,491 |
|
|
457,576 |
|
|
622,580 |
|
|
430,644 |
|
Time deposits |
550,751 |
|
|
584,085 |
|
|
570,052 |
|
|
567,326 |
|
|
558,945 |
|
Borrowings |
184,391 |
|
|
185,688 |
|
|
352,554 |
|
|
185,036 |
|
|
269,070 |
|
Subordinated notes |
41,809 |
|
|
44,598 |
|
|
44,456 |
|
|
43,196 |
|
|
44,460 |
|
Total interest-bearing liabilities |
$ |
1,560,712 |
|
|
$ |
1,551,678 |
|
|
$ |
1,539,814 |
|
|
$ |
1,556,220 |
|
|
$ |
1,413,825 |
|
Noninterest bearing demand deposits |
737,038 |
|
|
692,617 |
|
|
603,552 |
|
|
714,949 |
|
|
498,535 |
|
Other liabilities |
32,852 |
|
|
31,608 |
|
|
29,750 |
|
|
32,235 |
|
|
27,622 |
|
Shareholders' equity |
222,950 |
|
|
219,684 |
|
|
180,789 |
|
|
221,325 |
|
|
177,814 |
|
Total liabilities and shareholders' equity |
$ |
2,553,552 |
|
|
$ |
2,495,587 |
|
|
$ |
2,353,905 |
|
|
$ |
2,524,729 |
|
|
$ |
2,117,796 |
|
|
|
|
|
|
|
|
|
|
|
Yields:
(3) |
|
|
|
|
|
|
|
|
|
Earning Assets |
|
|
|
|
|
|
|
|
|
Gross loans |
4.32 |
% |
|
4.35 |
% |
|
4.34 |
% |
|
4.33 |
% |
|
4.64 |
% |
Investment securities: |
|
|
|
|
|
|
|
|
|
Taxable |
1.60 |
% |
|
1.60 |
% |
|
2.07 |
% |
|
1.60 |
% |
|
2.21 |
% |
Tax-exempt |
3.03 |
% |
|
3.08 |
% |
|
3.22 |
% |
|
3.05 |
% |
|
3.20 |
% |
Interest earning cash balances |
0.11 |
% |
|
0.10 |
% |
|
0.12 |
% |
|
0.10 |
% |
|
0.43 |
% |
Other investments |
3.40 |
% |
|
3.18 |
% |
|
3.44 |
% |
|
3.29 |
% |
|
3.94 |
% |
Total interest earning assets |
3.65 |
% |
|
3.74 |
% |
|
3.73 |
% |
|
3.69 |
% |
|
4.10 |
% |
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
0.15 |
% |
|
0.16 |
% |
|
0.25 |
% |
|
0.15 |
% |
|
0.36 |
% |
Money market and savings deposits |
0.18 |
% |
|
0.25 |
% |
|
0.49 |
% |
|
0.22 |
% |
|
0.78 |
% |
Time deposits |
0.54 |
% |
|
0.66 |
% |
|
1.59 |
% |
|
0.60 |
% |
|
1.75 |
% |
Borrowings |
1.03 |
% |
|
1.02 |
% |
|
0.73 |
% |
|
1.03 |
% |
|
0.88 |
% |
Subordinated notes |
5.32 |
% |
|
4.92 |
% |
|
5.75 |
% |
|
5.12 |
% |
|
5.75 |
% |
Total interest-bearing liabilities |
0.55 |
% |
|
0.63 |
% |
|
1.09 |
% |
|
0.59 |
% |
|
1.30 |
% |
|
|
|
|
|
|
|
|
|
|
Interest
Spread |
3.10 |
% |
|
3.11 |
% |
|
2.64 |
% |
|
3.10 |
% |
|
2.80 |
% |
Net interest
margin(4) |
3.27 |
% |
|
3.30 |
% |
|
2.95 |
% |
|
3.28 |
% |
|
3.14 |
% |
Tax equivalent
effect |
0.03 |
% |
|
0.03 |
% |
|
0.03 |
% |
|
0.03 |
% |
|
0.03 |
% |
Net interest margin on
a fully tax equivalent basis |
3.30 |
% |
|
3.33 |
% |
|
2.98 |
% |
|
3.31 |
% |
|
3.17 |
% |
(1) Includes nonaccrual loans.(2) For presentation in this
table, average balances and the corresponding average rates for
investment securities are based upon historical cost, adjusted for
amortization of premiums and accretion of discounts.(3) Average
rates and yields are presented on an annual basis and includes a
taxable equivalent adjustment to interest income of $153 thousand,
$152 thousand, and $154 thousand on tax-exempt securities for
the three months ended June 30, 2021, March 31, 2021, and June 30,
2020, respectively, and $304 thousand and $286 thousand
for the six months ended June 30, 2020 and 2021, respectively,
using a federal income tax rate of 21%.(4) Net interest margin
represents net interest income divided by average total
interest-earning assets.
Loan
Composition |
|
|
|
|
|
|
|
|
|
|
As of |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(Dollars in thousands) |
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
Commercial real estate: |
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
(Unaudited) |
Non-owner occupied |
$ |
477,715 |
|
|
$ |
449,690 |
|
|
$ |
445,810 |
|
|
$ |
460,708 |
|
|
$ |
451,906 |
|
Owner-occupied |
301,615 |
|
|
300,175 |
|
|
275,022 |
|
|
269,481 |
|
|
273,577 |
|
Total commercial real estate |
779,330 |
|
|
749,865 |
|
|
720,832 |
|
|
730,189 |
|
|
725,483 |
|
Commercial and industrial |
642,606 |
|
|
794,096 |
|
|
685,504 |
|
|
807,923 |
|
|
790,353 |
|
Residential real estate |
352,513 |
|
|
316,089 |
|
|
315,476 |
|
|
304,088 |
|
|
294,041 |
|
Consumer |
794 |
|
|
1,641 |
|
|
1,725 |
|
|
1,688 |
|
|
5,476 |
|
Total loans |
$ |
1,775,243 |
|
|
$ |
1,861,691 |
|
|
$ |
1,723,537 |
|
|
$ |
1,843,888 |
|
|
$ |
1,815,353 |
|
Impaired
Assets |
|
|
|
|
|
|
|
|
|
|
As of |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(Dollars in thousands) |
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
Nonaccrual loans |
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
(Unaudited) |
Commercial real estate |
$ |
4,536 |
|
|
$ |
4,542 |
|
|
$ |
7,320 |
|
|
$ |
7,022 |
|
|
$ |
3,649 |
|
Commercial and industrial |
5,247 |
|
|
6,822 |
|
|
7,490 |
|
|
8,078 |
|
|
2,377 |
|
Residential real estate |
3,931 |
|
|
3,987 |
|
|
3,991 |
|
|
4,151 |
|
|
2,226 |
|
Consumer |
10 |
|
|
13 |
|
|
15 |
|
|
15 |
|
|
16 |
|
Total nonaccrual loans |
13,724 |
|
|
15,364 |
|
|
18,816 |
|
|
19,266 |
|
|
8,268 |
|
Other real estate owned |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
61 |
|
Total nonperforming assets |
13,724 |
|
|
15,364 |
|
|
18,816 |
|
|
19,266 |
|
|
8,329 |
|
Performing troubled debt
restructurings |
|
|
|
|
|
|
|
|
|
Commercial and industrial |
336 |
|
|
335 |
|
|
546 |
|
|
550 |
|
|
549 |
|
Residential real estate |
429 |
|
|
430 |
|
|
432 |
|
|
599 |
|
|
600 |
|
Total performing troubled debt restructurings |
765 |
|
|
765 |
|
|
978 |
|
|
1,149 |
|
|
1,149 |
|
Total impaired assets |
$ |
14,489 |
|
|
$ |
16,129 |
|
|
$ |
19,794 |
|
|
$ |
20,415 |
|
|
$ |
9,478 |
|
|
|
|
|
|
|
|
|
|
|
Loans 90 days or more past due
and still accruing |
$ |
387 |
|
|
$ |
328 |
|
|
$ |
269 |
|
|
$ |
552 |
|
|
$ |
903 |
|
GAAP Reconciliation of Non-GAAP Financial
Measures
Some of the financial measures included in this
report are not measures of financial condition or performance
recognized by GAAP. These non-GAAP financial measures include
tangible common shareholders' equity, tangible book value per
common share, the ratio of tangible common equity to tangible
assets, net income and diluted earnings per common share excluding
acquisition and due diligence fees, and allowance for loan loss as
a percentage of total loans, excluding PPP loans. Our management
uses these non-GAAP financial measures in its analysis of our
performance, and we believe that providing this information to
financial analysts and investors allows them to evaluate capital
adequacy, as well as better understand and evaluate the Company’s
core financial results for the periods in question.
The following presents these non-GAAP financial
measures along with their most directly comparable financial
measure calculated in accordance with GAAP:
Tangible
Common Shareholders' Equity, Tangible Common Equity to Tangible
Assets Ratio and Tangible Book Value Per Common Share |
|
As of |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(Dollars in thousands, except per share data) |
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
(Unaudited) |
Total shareholders'
equity |
$ |
225,409 |
|
|
$ |
217,187 |
|
|
$ |
215,327 |
|
|
$ |
209,468 |
|
|
$ |
180,259 |
|
Less: |
|
|
|
|
|
|
|
|
|
Preferred stock |
23,372 |
|
|
23,372 |
|
|
23,372 |
|
|
23,370 |
|
|
— |
|
Total common shareholders'
equity |
202,037 |
|
|
193,815 |
|
|
191,955 |
|
|
186,098 |
|
|
180,259 |
|
Less: |
|
|
|
|
|
|
|
|
|
Goodwill |
35,554 |
|
|
35,554 |
|
|
35,554 |
|
|
35,554 |
|
|
35,554 |
|
Mortgage servicing rights,
net |
4,599 |
|
|
4,346 |
|
|
3,361 |
|
|
2,193 |
|
|
1,213 |
|
Other intangible assets,
net |
2,862 |
|
|
3,028 |
|
|
3,196 |
|
|
3,388 |
|
|
3,579 |
|
Tangible common shareholders'
equity |
$ |
159,022 |
|
|
$ |
150,887 |
|
|
$ |
149,844 |
|
|
$ |
144,963 |
|
|
$ |
139,913 |
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding (in
thousands) |
7,629 |
|
|
7,630 |
|
|
7,634 |
|
|
7,734 |
|
|
7,734 |
|
Tangible book value per common
share |
$ |
20.84 |
|
|
$ |
19.78 |
|
|
$ |
19.63 |
|
|
$ |
18.74 |
|
|
$ |
18.09 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
2,506,523 |
|
|
$ |
2,572,726 |
|
|
$ |
2,442,982 |
|
|
$ |
2,446,447 |
|
|
$ |
2,541,696 |
|
Less: |
|
|
|
|
|
|
|
|
|
Goodwill |
35,554 |
|
|
35,554 |
|
|
35,554 |
|
|
35,554 |
|
|
35,554 |
|
Mortgage servicing rights,
net |
4,599 |
|
|
4,346 |
|
|
3,361 |
|
|
2,193 |
|
|
1,213 |
|
Other intangible assets,
net |
2,862 |
|
|
3,028 |
|
|
3,196 |
|
|
3,388 |
|
|
3,579 |
|
Tangible assets |
$ |
2,463,508 |
|
|
$ |
2,529,798 |
|
|
$ |
2,400,871 |
|
|
$ |
2,405,312 |
|
|
$ |
2,501,350 |
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity to
tangible assets |
6.46 |
% |
|
5.96 |
% |
|
6.24 |
% |
|
6.03 |
% |
|
5.59 |
% |
Adjusted
Income and Diluted Earnings Per Share |
|
For the three months ended |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(Dollars in thousands, except per share data) |
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
(Unaudited) |
Net income, as reported |
$ |
6,979 |
|
|
$ |
8,959 |
|
|
$ |
8,373 |
|
|
$ |
5,209 |
|
|
|
$ |
2,721 |
|
|
Acquisition and due diligence
fees |
— |
|
|
— |
|
|
— |
|
|
17 |
|
|
|
176 |
|
|
Income tax (benefit) expense
(1) |
— |
|
|
— |
|
|
2 |
|
|
(4 |
) |
|
|
(34 |
) |
|
Net income, excluding
acquisition and due diligence fees |
$ |
6,979 |
|
|
$ |
8,959 |
|
|
$ |
8,375 |
|
|
$ |
5,222 |
|
|
|
$ |
2,863 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share, as
reported |
$ |
0.84 |
|
|
$ |
1.10 |
|
|
$ |
1.02 |
|
|
$ |
0.67 |
|
|
|
$ |
0.35 |
|
|
Effect of acquisition and due
diligence fees, net of income tax benefit |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
0.02 |
|
|
Diluted earnings per common
share, excludingacquisition and due diligence fees |
$ |
0.84 |
|
|
$ |
1.10 |
|
|
$ |
1.02 |
|
|
$ |
0.67 |
|
|
|
$ |
0.37 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Assumes
income tax rate of 21% on deductible acquisition expenses. |
|
|
Allowance
for Loan Loss as a Percentage of Total Loans, Excluding PPP
Loans |
|
As of |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(Dollars in thousands, except per share data) |
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
(Unaudited) |
Total loans |
$ |
1,775,243 |
|
|
$ |
1,861,691 |
|
|
$ |
1,723,537 |
|
|
$ |
1,843,888 |
|
|
$ |
1,815,353 |
|
Less: |
|
|
|
|
|
|
|
|
|
PPP loans |
259,303 |
|
|
405,770 |
|
|
290,135 |
|
|
392,521 |
|
|
388,264 |
|
Total loans, excluding PPP
loans |
$ |
1,515,940 |
|
|
$ |
1,455,921 |
|
|
$ |
1,433,402 |
|
|
$ |
1,451,367 |
|
|
$ |
1,427,089 |
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan loss |
$ |
23,144 |
|
|
$ |
22,578 |
|
|
$ |
22,297 |
|
|
$ |
21,254 |
|
|
$ |
17,063 |
|
Allowance for loan loss as a
percentage of total loans |
1.30 |
% |
|
1.21 |
% |
|
1.29 |
% |
|
1.15 |
% |
|
0.94 |
% |
Allowance for loan loss as a
percentage of total loans, excluding PPP loans |
1.53 |
% |
|
1.55 |
% |
|
1.56 |
% |
|
1.46 |
% |
|
1.20 |
% |
Media Contact:
Nicole Ransom
(248) 538-2183
Investor Relations Contact:
Peter Root
(248) 538-2186
Level One Bancorp (NASDAQ:LEVL)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Level One Bancorp (NASDAQ:LEVL)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024