Level One Bancorp, Inc. (“Level One”) (Nasdaq: LEVL) today reported
its financial results for the third quarter of 2021, which included
net income of $9.5 million, or $1.16 diluted earnings per common
share. This compares to net income of $5.2 million, or $0.67
diluted earnings per common share, in the third quarter of 2020.
Patrick J. Fehring, Chief Executive Officer of Level One,
commented, "The Level One team delivered solid operating results in
the third quarter 2021 with net income of $9.5 million or $1.16
diluted earnings per common share. This represents a 38.10%
increase over diluted earnings per common share of $0.84 for the
prior quarter and an increase of 73.13% over the third quarter of
2020 diluted earnings per common share of $0.67. Our quarterly
performance was driven by growth in total loans of $56.1 million
(excluding Paycheck Protection Program ("PPP") loans), or 14.81%
annualized for the period and an increase in fees from mortgage
banking activities of $1.5 million or 55.51% over the prior
quarter. As announced over the summer, Level One added talent to
our mortgage origination team, and the impact was evident in our
business results."
Mr. Fehring continued, "Level One also experienced improved
credit quality with a decrease in our nonperforming assets as a
percentage of total assets to 0.48% at the end of the third quarter
compared to 0.55% at the end of the prior quarter. Our financial
results also reflect an increase of the net interest margin to
3.47% in the third quarter compared to 3.30% in the prior quarter.
The improvement in the net interest margin during the quarter was a
result of decreased deposit cost, lower subordinated debt expense
along with higher loan interest income including PPP revenue. We
are pleased with these positive operating results for the quarter,
and we appreciate the efforts of the Level One team."
Third Quarter 2021
Highlights
- Total loans decreased 3.13% to $1.72 billion at September 30,
2021, compared to $1.78 billion at June 30, 2021
- Total loans, excluding a decrease of $111.7 million of PPP
loans, increased $56.1 million, or 14.81% annualized, during the
third quarter of 2021
- Total assets increased 1.49% to $2.54 billion at September 30,
2021, compared to $2.51 billion at June 30, 2021
- Total deposits increased 1.73% to $2.07 billion at September
30, 2021, compared to $2.03 billion at June 30, 2021
- Book value per common share increased 4.08% to $27.56 per
common share at September 30, 2021, compared to $26.48 per common
share at June 30, 2021
- Tangible book value per common share increased 5.04% to $21.89
per common share at September 30, 2021, compared to $20.84 per
common share at June 30, 2021
- Net income of $9.5 million increased 35.62% from $7.0 million
in the preceding quarter
- Diluted earnings per common share of $1.16 increased 38.10%
compared to $0.84 in the preceding quarter
- Net interest margin, on a fully taxable equivalent ("FTE")
basis, was 3.47%, compared to 3.30% in the preceding quarter and
2.80% in the third quarter of 2020
- Noninterest income increased $1.7 million to $6.0 million in
the third quarter of 2021, compared to $4.3 million in the
preceding quarter
- Noninterest expense increased $1.4 million to $16.0 million in
the third quarter of 2021, compared to $14.6 million in the
preceding quarter
- Provision for loan loss decreased $1.7 million to a $1.2
million recovery of provision in the third quarter of 2021,
compared to a $540 thousand provision expense in the preceding
quarter
Net Interest Income and Net Interest Margin
Level One's net interest income increased $899 thousand, or
4.58%, to $20.5 million in the third quarter of 2021, compared to
$19.6 million in the preceding quarter, and increased $3.9 million,
or 23.61%, compared to $16.6 million in the third quarter of 2020.
The increase in net interest income compared to the preceding
quarter was primarily due to an increase of $500 thousand of
interest income on loans and decreases of $126 thousand in interest
expense on deposits and $181 thousand in interest expense on
subordinated notes. The increase in net interest income compared to
the third quarter of 2020 was primarily due to increases of $1.7
million of interest income on loans primarily as a result of the
accelerated recognition of fees on PPP loans that were forgiven and
$419 thousand of interest income on investment securities due to
increased volumes of investment securities. In addition, between
the third quarter of 2020 and the third quarter of 2021, interest
expense on deposits decreased $1.4 million and interest expense on
borrowed funds and subordinated notes decreased $483 thousand. The
decrease in interest expense on deposits was primarily due to lower
interest rates paid as a result of revised internal deposit rates
and maturity of higher cost time deposits. The decrease in interest
expense on borrowed funds and subordinated notes was primarily due
to the redemption of $15.0 million of subordinated notes during the
second quarter of 2021 and a decrease in Federal Reserve Bank
borrowings.
Level One’s net interest margin, on a FTE basis, was 3.47% in
the third quarter of 2021, compared to 3.30% in the preceding
quarter and 2.80% in the third quarter of 2020. The increase in the
net interest margin year over year was primarily a result of an
increase in loan yields of 62 basis points to 4.60% in the third
quarter of 2021, compared to 3.98% in the third quarter of 2020 due
primarily to the recognition of fees on PPP loans, as well as a
decrease in the cost of interest-bearing liabilities, which
declined 40 basis points to 0.48% in the third quarter of 2021,
compared to 0.88% in the third quarter of 2020 primarily due to
lower interest rates paid as a result of revised internal deposit
rates and maturity of higher cost time deposits.
Noninterest Income
Level One's noninterest income increased $1.7 million, or
39.64%, to $6.0 million in the third quarter of 2021, compared to
$4.3 million in the preceding quarter, and decreased $3.1 million,
or 33.80%, compared to $9.1 million in the third quarter of 2020.
The increase in noninterest income compared to the preceding
quarter was primarily attributable to an increase of $1.5 million
in mortgage banking activities and an increase of $151 thousand in
other charges and fees. The increase in the mortgage banking
activities income compared to the preceding quarter was primarily
due to $26.2 million higher residential loan originations held for
sale and $11.2 million higher residential loans sold primarily as a
result of increased hiring efforts and efficiencies created within
the mortgage department. The increase in other charges and fees was
primarily due to tax credits as a result of legislation enacted in
response to the COVID-19 pandemic recognized during the
quarter.
The decrease in noninterest income in the third quarter of 2021
compared to the same period in 2020 was primarily due to decreases
of $2.9 million in mortgage banking activities and $434 thousand in
net gains on sales of investment securities. This was partially
offset by an increase of $243 thousand in service charges on
deposits. The decrease in mortgage banking activities compared to
the third quarter of 2020 was primarily due to $84.2 million fewer
residential loan originations held for sale and $54.5 million fewer
residential loans sold. The higher volumes in the third quarter of
2020 were primarily as a result of the significant decrease in
interest rates during the first half of 2020 while interest rates
have remained relatively stable in 2021. The decrease in net gains
on sales of investment securities was due to no securities sold in
the third quarter of 2021. The increase in service charges on
deposits was primarily due to higher transaction volumes and
deposit balances.
Noninterest Expense
Level One's noninterest expense increased $1.4 million, or
9.60%, to $16.0 million in the third quarter of 2021, compared to
$14.6 million in the preceding quarter, and increased $863
thousand, or 5.71%, compared to $15.1 million in the third quarter
of 2020. The increase in noninterest expense compared to the
preceding quarter was primarily attributable to increases of $1.2
million in salary and employee benefits and $147 thousand in
marketing expense. The increase in salary and employee benefits
compared to the second quarter of 2021 was primarily due to an
increase of $902 thousand in mortgage commissions as well as an
increase of 15 full-time equivalent employees. The increase in
marketing expense between the periods was due to an increase in
advertising efforts.
The increase in noninterest expense in the third quarter of 2021
compared to the same period in 2020 was mainly attributable to an
increase of $689 thousand in salary and employee benefits and $171
thousand in marketing expense. The increase in salary and employee
benefits between the periods was primarily due to an increase of 20
full-time equivalent employees as well as incentive compensation.
The increase in marketing expense between the periods was due to an
increase in advertising efforts.
The efficiency ratio, which is a measure of operating expenses
as a percentage of net interest income and noninterest income, was
60.21% for the third quarter of 2021, compared to 60.93% for the
preceding quarter and 58.81% in the third quarter of 2020.
Income Tax Expense
Level One's income tax provision was $2.3 million, or 19.49% of
pretax income, in the third quarter of 2021, as compared to $1.8
million, or 20.82% of pretax income, in the preceding quarter and
$1.1 million, or 17.66% of pretax income, in the third quarter of
2020.
Loan Portfolio
Total loans were $1.72 billion at September 30, 2021, a decrease
of $55.5 million, or 3.13%, from $1.78 billion at June 30, 2021,
and down $124.2 million, or 6.73%, from $1.84 billion at September
30, 2020. The decrease in total loans compared to June 30, 2021 was
primarily due to $111.7 million of PPP loans forgiven by the SBA
during the third quarter partially offset by a net increase of
$56.1 million, or 14.81% annualized growth, in the remainder of the
loan portfolio. The decrease in total loans compared to September
30, 2020, was primarily due to a $244.9 million net decrease in PPP
loans (originated and forgiven) which was partially offset by a net
increase of $120.7 million in the remainder of the loan
portfolio.
Investment Securities
The investment securities portfolio grew $13.0 million, or
3.47%, to $389.5 million at September 30, 2021, from $376.5 million
at June 30, 2021, and up $136.0 million, or 53.64%, from $253.5
million at September 30, 2020. The increase in the investment
securities portfolio compared to June 30, 2021 was primarily due to
the purchase of $19.6 million of investment securities using excess
cash balances generated by payoffs of PPP loans, partially offset
in part by $6.6 million of sales, calls, or maturity of investment
securities and principal pay downs. The increase in investment
securities compared to September 30, 2020, was primarily due to the
purchase of $172.2 million of securities between the two dates
using excess cash balances generated by the payoffs of PPP loans,
partially offset by $36.2 million of sales, calls, or maturity of
investment securities and principal pay downs.
Deposits
Total deposits were $2.07 billion at September 30, 2021, an
increase of $35.2 million, or 1.73%, from $2.03 billion at June 30,
2021, and up $123.6 million, or 6.36%, from $1.94 billion at
September 30, 2020. The growth in deposits compared to June 30,
2021 and September 30, 2020 was primarily due to organic deposit
growth as a result of increased customer liquidity and new
customers. Total deposit composition at September 30, 2021
consisted of 47.01% of demand deposit accounts, 30.55% of savings
and money market accounts and 22.44% of time deposits.
Borrowings
Total debt outstanding was $211.7 million at September 30, 2021,
a decrease of $564 thousand, or 0.27%, from $212.3 million at June
30, 2021, and down $49.6 million, or 18.99%, from $261.4 million at
September 30, 2020. The decrease in total borrowings compared to
September 30, 2020 was primarily due to a decrease of $34.1 million
in Federal Reserve Bank borrowings under the Paycheck Protection
Program Liquidity Facility as well as the redemption of $15.0
million of subordinated notes. The Company would have paid
approximately $721 thousand per year in interest on the redeemed
subordinated notes.
Asset Quality
Nonaccrual loans were $12.1 million, or 0.71% of total loans, at
September 30, 2021, a decrease of $1.6 million from nonaccrual
loans of $13.7 million, or 0.77% of total loans, at June 30, 2021,
and a decrease of $7.1 million from nonaccrual loans of $19.3
million, or 1.04% of total loans, at September 30, 2020. The
decrease in nonaccrual loans compared to the prior quarter-end was
primarily due to a $2.9 million pay off of one commercial loan
relationship partially offset by two commercial loan relationships
moving to nonaccrual status totaling $1.9 million. The decrease in
nonaccrual loans compared to September 30, 2020 was primarily due
to pay offs of five commercial loan relationships totaling $5.9
million, paydowns on two commercial loan relationships totaling
$3.3 million, and the transfer of a $1.8 million residential real
estate loan relationship to other real estate owned. This was
partially offset by three commercial loan relationships and one
residential real estate loan moving to nonaccrual status totaling
$3.0 million.
Nonperforming assets, consisting of nonaccrual loans and other
real estate owned, as a percentage of total assets were 0.48% at
September 30, 2021, compared to 0.55% at June 30, 2021, and 0.79%
at September 30, 2020.
Performing troubled debt restructured loans, which are not
reported as nonaccrual loans but rather as part of impaired loans,
were $762 thousand at September 30, 2021 compared to $765 thousand
at June 30, 2021, and $1.1 million at September 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 September 30, 2021, there were $1.1 million of loans
that remained on a COVID-related deferral compared to $7.5 million
as of June 30, 2021. As of September 30, 2021, there were no loans
that had payments deferred greater than six months compared to $7.4
million as of June 30, 2021.
Net charge-offs in the third quarter of 2021 were $224 thousand,
or 0.05% of average loans on an annualized basis, compared to $26
thousand of net recoveries, or 0.01% of average loans on an
annualized basis for the preceding quarter and $78 thousand of net
charge-offs, or 0.02% of average loans on an annualized basis, in
the third quarter of 2020.
Level One's provision for loan losses in the third quarter of
2021 was a provision recovery of $1.2 million, compared to
provision expense of $540 thousand in the preceding quarter and
provision expense of $4.3 million in the third quarter of 2020. The
decrease in the provision expense quarter over quarter was
primarily due to a decrease of $2.0 million in general reserves as
a result of a reduction in qualitative factors within the allowance
for loan loss model as a result of improved credit quality,
partially offset by an increase in specific reserves of $252
thousand. The decrease in the provision expense in the third
quarter of 2021 compared to the same period in 2020 was primarily
due to a decrease in general reserves of $5.1 million resulting
from a decrease in qualitative factors and a decrease of $531
thousand 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 $21.7 million, or 1.26% of
total loans, at September 30, 2021, compared to $23.1 million, or
1.30% of total loans, at June 30, 2021, and $21.3 million, or 1.15%
of total loans, at September 30, 2020. Excluding PPP loans of
$147.6 million, $259.3 million, and $392.5 million as of these
dates respectively, the allowance for loan losses as a percentage
of total loans was 1.38% as of September 30, 2021, compared to
1.53% as of June 30, 2021 and 1.46% as of September 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 decreased compared to June 30, 2021
primarily due to a reduction in qualitative factors within the
allowance for loan loss model as a result of improved credit
quality. The allowance for loan losses as a percentage of total
loans increased compared to September 30, 2020 as a result of the
forgiveness of $244.9 million of PPP loans. As of September 30,
2021, the allowance for loan losses as a percentage of nonaccrual
loans was 179.11%, compared to 168.64% at June 30, 2021, and
110.32% at September 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 $233.9 million at September 30,
2021, an increase of $8.5 million, or 3.78%, compared with $225.4
million at June 30, 2021 primarily as a result of an increase in
retained earnings. Total shareholders' equity increased $24.4
million, or 11.68%, from $209.5 million at September 30, 2020,
primarily as a result of an increase in retained earnings.
Recent Developments
Third Quarter Common Stock
Dividend: On September 15, 2021, Level
One’s Board of Directors declared a quarterly cash dividend of
$0.06 per share. This dividend was paid on October 15, 2021, to
stockholders of record at the close of business on September 30,
2021.
Third Quarter Preferred Stock Dividend: On
October 20, 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 November 15, 2021, to shareholders of record
at the close of business on October 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 funded 1,532 PPP loans for $234.3
million, of which 1,187 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 $2.54 billion as of September
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 terminology. 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, |
|
(Dollars in thousands, except per share data) |
|
September2021 |
|
June 30,2021 |
|
March 31,2021 |
|
December 31,2020 |
|
September30, 2020 |
|
Earnings Summary |
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
22,322 |
|
|
$ |
21,737 |
|
|
$ |
21,551 |
|
|
$ |
22,181 |
|
|
$ |
20,245 |
|
| Interest expense |
|
1,807 |
|
|
2,121 |
|
|
2,394 |
|
|
3,075 |
|
|
3,648 |
|
| Net interest income |
|
20,515 |
|
|
19,616 |
|
|
19,157 |
|
|
19,106 |
|
|
16,597 |
|
| Provision expense (recovery)
for loan losses |
|
(1,189 |
) |
|
540 |
|
|
265 |
|
|
1,538 |
|
|
4,270 |
|
| Noninterest income |
|
6,041 |
|
|
4,326 |
|
|
7,278 |
|
|
8,110 |
|
|
9,125 |
|
| Noninterest expense |
|
15,989 |
|
|
14,588 |
|
|
15,139 |
|
|
15,461 |
|
|
15,126 |
|
| Income before income
taxes |
|
11,756 |
|
|
8,814 |
|
|
11,031 |
|
|
10,217 |
|
|
6,326 |
|
| Income tax provision |
|
2,291 |
|
|
1,835 |
|
|
2,072 |
|
|
1,844 |
|
|
1,117 |
|
| Net income |
|
$ |
9,465 |
|
|
$ |
6,979 |
|
|
$ |
8,959 |
|
|
$ |
8,373 |
|
|
$ |
5,209 |
|
| Preferred stock dividends |
|
468 |
|
|
469 |
|
|
469 |
|
|
479 |
|
|
— |
|
| Net income available to common
shareholders |
|
8,997 |
|
|
6,510 |
|
|
8,490 |
|
|
7,894 |
|
|
5,209 |
|
| Net income allocated to
participating securities |
|
138 |
|
|
92 |
|
|
111 |
|
|
65 |
|
|
40 |
|
| Net income attributable to
common shareholders |
|
$ |
8,859 |
|
|
$ |
6,418 |
|
|
$ |
8,379 |
|
|
$ |
7,829 |
|
|
$ |
5,169 |
|
| Per Share
Data |
|
|
|
|
|
|
|
|
|
|
| Basic earnings per common
share |
|
$ |
1.19 |
|
|
$ |
0.85 |
|
|
$ |
1.11 |
|
|
$ |
1.02 |
|
|
$ |
0.68 |
|
| Diluted earnings per common
share |
|
1.16 |
|
|
0.84 |
|
|
1.10 |
|
|
1.02 |
|
|
0.67 |
|
| Diluted earnings per common
share, excluding acquisition and due diligence fees (1) |
|
1.16 |
|
|
0.84 |
|
|
1.10 |
|
|
1.02 |
|
|
0.67 |
|
| Book value per common
share |
|
27.56 |
|
|
26.48 |
|
|
25.40 |
|
|
25.14 |
|
|
24.06 |
|
| Tangible book value per common
share (1) |
|
21.89 |
|
|
20.84 |
|
|
19.78 |
|
|
19.63 |
|
|
18.74 |
|
| Preferred shares outstanding
(in thousands) |
|
10 |
|
|
10 |
|
|
10 |
|
|
10 |
|
|
10 |
|
| Common shares outstanding (in
thousands) |
|
7,640 |
|
|
7,629 |
|
|
7,630 |
|
|
7,634 |
|
|
7,734 |
|
| Average basic common shares
(in thousands) |
|
7,519 |
|
|
7,520 |
|
|
7,528 |
|
|
7,642 |
|
|
7,675 |
|
| Average diluted common shares
(in thousands) |
|
7,638 |
|
|
7,633 |
|
|
7,612 |
|
|
7,695 |
|
|
7,712 |
|
| Selected Period End
Balances |
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
2,543,883 |
|
|
$ |
2,506,523 |
|
|
$ |
2,572,726 |
|
|
$ |
2,442,982 |
|
|
$ |
2,446,447 |
|
| Securities
available-for-sale |
|
389,528 |
|
|
376,453 |
|
|
346,266 |
|
|
302,732 |
|
|
253,527 |
|
| Total loans |
|
1,719,717 |
|
|
1,775,243 |
|
|
1,861,691 |
|
|
1,723,537 |
|
|
1,843,888 |
|
| Total deposits |
|
2,066,992 |
|
|
2,031,808 |
|
|
2,093,965 |
|
|
1,963,312 |
|
|
1,943,435 |
|
| Total liabilities |
|
2,309,949 |
|
|
2,281,114 |
|
|
2,355,539 |
|
|
2,227,655 |
|
|
2,236,979 |
|
| Total shareholders'
equity |
|
233,934 |
|
|
225,409 |
|
|
217,187 |
|
|
215,327 |
|
|
209,468 |
|
| Total common shareholders'
equity |
|
210,562 |
|
|
202,037 |
|
|
193,815 |
|
|
191,955 |
|
|
186,098 |
|
| Tangible common shareholders'
equity (1) |
|
167,262 |
|
|
159,022 |
|
|
150,887 |
|
|
149,844 |
|
|
144,963 |
|
| Performance and
Capital Ratios |
|
|
|
|
|
|
|
|
|
|
| Return on average assets
(annualized) |
|
1.50 |
% |
|
1.09 |
% |
|
1.44 |
% |
|
1.35 |
% |
|
0.83 |
% |
| Return on average equity
(annualized) |
|
16.32 |
|
|
12.52 |
|
|
16.31 |
|
|
15.61 |
|
|
10.48 |
|
| Net interest margin (fully
taxable equivalent)(2) |
|
3.47 |
|
|
3.30 |
|
|
3.33 |
|
|
3.27 |
|
|
2.80 |
|
| Efficiency ratio (noninterest
expense/net interest income plus noninterest income) |
|
60.21 |
|
|
60.93 |
|
|
57.27 |
|
|
56.81 |
|
|
58.81 |
|
| Dividend payout ratio |
|
5.08 |
|
|
7.02 |
|
|
4.50 |
|
|
4.90 |
|
|
7.41 |
|
| Total shareholders' equity to
total assets |
|
9.20 |
|
|
8.99 |
|
|
8.44 |
|
|
8.81 |
|
|
8.56 |
|
| Tangible common equity to
tangible assets (1) |
|
6.69 |
|
|
6.46 |
|
|
5.96 |
|
|
6.24 |
|
|
6.03 |
|
| Common equity tier 1 to
risk-weighted assets |
|
9.82 |
|
|
9.66 |
|
|
9.63 |
|
|
9.30 |
|
|
8.83 |
|
| Tier 1 capital to
risk-weighted assets |
|
11.19 |
|
|
11.09 |
|
|
11.11 |
|
|
10.80 |
|
|
10.31 |
|
| Total capital to risk-weighted
assets |
|
14.19 |
|
|
14.15 |
|
|
15.18 |
|
|
14.91 |
|
|
14.39 |
|
| Tier 1 capital to average
assets (leverage ratio) |
|
7.68 |
|
|
7.24 |
|
|
7.15 |
|
|
6.93 |
|
|
7.17 |
|
| Asset Quality
Ratios: |
|
|
|
|
|
|
|
|
|
|
| Net charge-offs (recoveries)
to average loans |
|
0.05 |
% |
|
(0.01 |
)% |
|
— |
% |
|
0.11 |
% |
|
0.02 |
% |
| Nonperforming assets as a
percentage of total assets |
|
0.48 |
|
|
0.55 |
|
|
0.60 |
|
|
0.77 |
|
|
0.79 |
|
| Nonaccrual loans as a percent
of total loans |
|
0.71 |
|
|
0.77 |
|
|
0.83 |
|
|
1.09 |
|
|
1.04 |
|
| Allowance for loan losses as a
percentage of total loans |
|
1.26 |
|
|
1.30 |
|
|
1.21 |
|
|
1.29 |
|
|
1.15 |
|
| Allowance for loan losses as a
percentage of nonaccrual loans |
|
179.11 |
|
|
168.64 |
|
|
146.95 |
|
|
118.50 |
|
|
110.32 |
|
| Allowance for loan losses as a
percentage of nonaccrual loans, excluding allowance allocated to
loans accounted for under ASC 310-30 |
|
173.58 |
|
|
163.76 |
|
|
142.62 |
|
|
114.95 |
|
|
105.46 |
|
(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 |
|
|
|
|
|
|
|
(Unaudited) |
|
As of |
|
(Dollars in thousands) |
|
September 30,2021 |
|
June 30,2021 |
|
September 30,2020 |
|
Assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
293,824 |
|
|
$ |
218,366 |
|
|
$ |
176,486 |
|
| Securities
available-for-sale |
|
389,528 |
|
|
376,453 |
|
|
253,527 |
|
| Other investments |
|
14,398 |
|
|
14,398 |
|
|
14,398 |
|
| Mortgage loans held for sale,
at fair value |
|
15,351 |
|
|
9,305 |
|
|
60,635 |
|
| Loans: |
|
|
|
|
|
|
|
Originated loans |
|
1,537,145 |
|
|
1,580,175 |
|
|
1,603,893 |
|
|
Acquired loans |
|
182,572 |
|
|
195,068 |
|
|
239,995 |
|
|
Total loans |
|
1,719,717 |
|
|
1,775,243 |
|
|
1,843,888 |
|
|
Less: Allowance for loan losses |
|
(21,731 |
) |
|
(23,144 |
) |
|
(21,254 |
) |
|
Net loans |
|
1,697,986 |
|
|
1,752,099 |
|
|
1,822,634 |
|
| Premises and equipment,
net |
|
15,170 |
|
|
15,524 |
|
|
15,646 |
|
| Goodwill |
|
35,554 |
|
|
35,554 |
|
|
35,554 |
|
| Mortgage servicing rights,
net |
|
5,051 |
|
|
4,599 |
|
|
2,194 |
|
| Other intangible assets,
net |
|
2,695 |
|
|
2,862 |
|
|
3,387 |
|
| Bank-owned life insurance |
|
29,774 |
|
|
29,576 |
|
|
18,083 |
|
| Income tax benefit |
|
4,041 |
|
|
5,491 |
|
|
3,791 |
|
| Interest receivable and other
assets |
|
40,511 |
|
|
42,296 |
|
|
40,112 |
|
|
Total assets |
|
$ |
2,543,883 |
|
|
$ |
2,506,523 |
|
|
$ |
2,446,447 |
|
|
Liabilities |
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
|
$ |
791,879 |
|
|
$ |
734,451 |
|
|
$ |
632,427 |
|
|
Interest-bearing demand deposits |
|
179,814 |
|
|
142,862 |
|
|
115,395 |
|
|
Money market and savings deposits |
|
631,551 |
|
|
629,378 |
|
|
595,471 |
|
|
Time deposits |
|
463,748 |
|
|
525,117 |
|
|
600,142 |
|
|
Total deposits |
|
2,066,992 |
|
|
2,031,808 |
|
|
1,943,435 |
|
| Borrowings |
|
182,058 |
|
|
182,639 |
|
|
216,809 |
|
| Subordinated notes |
|
29,668 |
|
|
29,651 |
|
|
44,555 |
|
| Other liabilities |
|
31,231 |
|
|
37,016 |
|
|
32,180 |
|
|
Total liabilities |
|
2,309,949 |
|
|
2,281,114 |
|
|
2,236,979 |
|
| 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 September 30, 2021, June 30,
2021 and September 30, 2020 |
|
23,372 |
|
|
23,372 |
|
|
23,370 |
|
|
Common stock, no par value per share; authorized - 20,000,000
shares; issued and outstanding - 7,639,544 shares at September 30,
2021, 7,628,944 shares at June 30, 2021 and 7,734,322 shares at
September 30, 2020 |
|
86,926 |
|
|
86,723 |
|
|
89,409 |
|
|
Retained earnings |
|
118,781 |
|
|
110,243 |
|
|
88,646 |
|
|
Accumulated other comprehensive income, net of tax |
|
4,855 |
|
|
5,071 |
|
|
8,043 |
|
|
Total shareholders' equity |
|
233,934 |
|
|
225,409 |
|
|
209,468 |
|
| Total liabilities and
shareholders' equity |
|
$ |
2,543,883 |
|
|
$ |
2,506,523 |
|
|
$ |
2,446,447 |
|
| Consolidated
Statements of Income |
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
Three months ended |
|
Nine months ended |
|
(In thousands, except per share data) |
|
September30, 2021 |
|
June 30,2021 |
|
September30, 2020 |
|
September30, 2021 |
|
September30, 2020 |
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
Originated loans, including fees |
|
$ |
17,796 |
|
|
$ |
17,167 |
|
|
$ |
15,274 |
|
|
$ |
51,785 |
|
|
$ |
44,630 |
|
| Acquired loans, including
fees |
|
2,651 |
|
|
2,780 |
|
|
3,456 |
|
|
8,532 |
|
|
11,187 |
|
| Securities: |
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
1,054 |
|
|
991 |
|
|
652 |
|
|
2,895 |
|
|
1,930 |
|
|
Tax-exempt |
|
630 |
|
|
627 |
|
|
613 |
|
|
1,880 |
|
|
1,894 |
|
| Federal funds sold and
other |
|
191 |
|
|
172 |
|
|
250 |
|
|
518 |
|
|
817 |
|
|
Total interest income |
|
22,322 |
|
|
21,737 |
|
|
20,245 |
|
|
65,610 |
|
|
60,458 |
|
| Interest
Expense |
|
|
|
|
|
|
|
|
|
|
| Deposits |
|
965 |
|
|
1,091 |
|
|
2,323 |
|
|
3,443 |
|
|
9,039 |
|
| Borrowed funds |
|
468 |
|
|
475 |
|
|
693 |
|
|
1,409 |
|
|
1,866 |
|
| Subordinated notes |
|
374 |
|
|
555 |
|
|
632 |
|
|
1,470 |
|
|
1,903 |
|
|
Total interest expense |
|
1,807 |
|
|
2,121 |
|
|
3,648 |
|
|
6,322 |
|
|
12,808 |
|
|
Net interest income |
|
20,515 |
|
|
19,616 |
|
|
16,597 |
|
|
59,288 |
|
|
47,650 |
|
| Provision expense (recovery)
for loan losses |
|
(1,189 |
) |
|
540 |
|
|
4,270 |
|
|
(384 |
) |
|
10,334 |
|
| Net interest income
after provision for loan losses |
|
21,704 |
|
|
19,076 |
|
|
12,327 |
|
|
59,672 |
|
|
37,316 |
|
| Noninterest
income |
|
|
|
|
|
|
|
|
|
|
| Service charges on
deposits |
|
859 |
|
|
800 |
|
|
616 |
|
|
2,436 |
|
|
1,798 |
|
| Net gain on sales of
securities |
|
— |
|
|
— |
|
|
434 |
|
|
20 |
|
|
1,862 |
|
| Mortgage banking
activities |
|
4,216 |
|
|
2,711 |
|
|
7,108 |
|
|
12,738 |
|
|
15,380 |
|
| Other charges and fees |
|
966 |
|
|
815 |
|
|
967 |
|
|
2,451 |
|
|
2,564 |
|
|
Total noninterest income |
|
6,041 |
|
|
4,326 |
|
|
9,125 |
|
|
17,645 |
|
|
21,604 |
|
| Noninterest
expense |
|
|
|
|
|
|
|
|
|
|
| Salary and employee
benefits |
|
10,551 |
|
|
9,352 |
|
|
9,862 |
|
|
29,825 |
|
|
28,090 |
|
| Occupancy and equipment
expense |
|
1,680 |
|
|
1,583 |
|
|
1,678 |
|
|
4,971 |
|
|
4,773 |
|
| Professional service fees |
|
847 |
|
|
774 |
|
|
808 |
|
|
2,264 |
|
|
2,141 |
|
| Acquisition and due diligence
fees |
|
— |
|
|
— |
|
|
17 |
|
|
— |
|
|
1,664 |
|
| FDIC premium expense |
|
244 |
|
|
210 |
|
|
287 |
|
|
778 |
|
|
|
722 |
|
| Marketing expense |
|
428 |
|
|
281 |
|
|
257 |
|
|
842 |
|
|
709 |
|
| Loan processing expense |
|
231 |
|
|
193 |
|
|
262 |
|
|
|
755 |
|
|
690 |
|
| Data processing expense |
|
928 |
|
|
1,057 |
|
|
844 |
|
|
3,209 |
|
|
2,601 |
|
| Core deposit premium
amortization |
|
167 |
|
|
166 |
|
|
192 |
|
|
|
501 |
|
|
576 |
|
| Other expense |
|
913 |
|
|
972 |
|
|
919 |
|
|
|
2,571 |
|
|
2,805 |
|
|
Total noninterest expense |
|
15,989 |
|
|
14,588 |
|
|
15,126 |
|
|
|
45,716 |
|
|
44,771 |
|
| Income before income
taxes |
|
11,756 |
|
|
8,814 |
|
|
6,326 |
|
|
|
31,601 |
|
|
14,149 |
|
| Income tax provision |
|
2,291 |
|
|
1,835 |
|
|
1,117 |
|
|
6,198 |
|
|
2,109 |
|
|
Net income |
|
9,465 |
|
|
6,979 |
|
|
5,209 |
|
|
25,403 |
|
|
12,040 |
|
| Preferred stock dividends |
|
468 |
|
|
469 |
|
|
— |
|
|
1,406 |
|
|
— |
|
|
Net income attributable to common
shareholders |
|
$ |
8,997 |
|
|
$ |
6,510 |
|
|
$ |
5,209 |
|
|
$ |
23,997 |
|
|
$ |
12,040 |
|
| Earnings per common
share: |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
|
$ |
1.19 |
|
|
$ |
0.85 |
|
|
$ |
0.68 |
|
|
$ |
3.15 |
|
|
$ |
1.56 |
|
|
Diluted earnings per common share |
|
$ |
1.16 |
|
|
$ |
0.84 |
|
|
$ |
0.67 |
|
|
$ |
3.10 |
|
|
$ |
1.55 |
|
|
Cash dividends declared per common share |
|
$ |
0.06 |
|
|
$ |
0.06 |
|
|
$ |
0.05 |
|
|
$ |
0.18 |
|
|
$ |
0.15 |
|
| Weighted average
common shares outstanding—basic |
|
7,519 |
|
|
7,520 |
|
|
7,675 |
|
|
7,526 |
|
|
7,640 |
|
| Weighted average
common shares outstanding—diluted |
|
7,638 |
|
|
7,633 |
|
|
7,712 |
|
|
7,631 |
|
|
7,701 |
|
| Net
Interest Income and Net Interest Margin |
|
|
|
|
|
|
|
(Unaudited) |
|
For the three months ended |
|
For the nine months ended |
|
(Dollars in thousands) |
|
September30, 2021 |
|
June 30,2021 |
|
September30, 2020 |
|
September30, 2021 |
|
September30, 2020 |
|
Average Balance Sheets: |
|
|
|
|
|
|
|
|
|
|
|
Gross loans(1) |
|
$ |
1,763,214 |
|
|
$ |
1,853,438 |
|
|
$ |
1,871,164 |
|
|
$ |
1,823,888 |
|
|
$ |
1,696,073 |
|
|
Investment securities: (2) |
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
265,885 |
|
|
248,739 |
|
|
139,237 |
|
|
243,377 |
|
|
124,169 |
|
|
Tax-exempt |
|
104,063 |
|
|
103,184 |
|
|
94,526 |
|
|
103,158 |
|
|
97,104 |
|
|
Interest earning cash balances |
|
221,261 |
|
|
186,186 |
|
|
259,349 |
|
|
192,309 |
|
|
188,179 |
|
|
Other investments |
|
14,398 |
|
|
14,398 |
|
|
12,419 |
|
|
14,398 |
|
|
12,401 |
|
|
Total interest-earning assets |
|
$ |
2,368,821 |
|
|
$ |
2,405,945 |
|
|
$ |
2,376,695 |
|
|
$ |
2,377,130 |
|
|
$ |
2,117,926 |
|
|
Non-earning assets |
|
151,077 |
|
|
147,607 |
|
|
140,480 |
|
|
145,971 |
|
|
133,968 |
|
|
Total assets |
|
$ |
2,519,898 |
|
|
$ |
2,553,552 |
|
|
$ |
2,517,175 |
|
|
$ |
2,523,101 |
|
|
$ |
2,251,894 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
156,977 |
|
|
143,290 |
|
|
116,285 |
|
|
144,449 |
|
|
112,579 |
|
|
Money market and savings deposits |
|
624,190 |
|
|
640,471 |
|
|
513,420 |
|
|
623,123 |
|
|
458,438 |
|
|
Time deposits |
|
489,261 |
|
|
550,751 |
|
|
575,179 |
|
|
541,018 |
|
|
564,396 |
|
|
Borrowings |
|
181,911 |
|
|
184,391 |
|
|
394,020 |
|
|
183,983 |
|
|
311,024 |
|
|
Subordinated notes |
|
29,657 |
|
|
41,809 |
|
|
44,468 |
|
|
38,633 |
|
|
44,463 |
|
|
Total interest-bearing liabilities |
|
$ |
1,481,996 |
|
|
$ |
1,560,712 |
|
|
$ |
1,643,372 |
|
|
$ |
1,531,206 |
|
|
$ |
1,490,900 |
|
|
Noninterest bearing demand deposits |
|
774,926 |
|
|
737,038 |
|
|
640,095 |
|
|
735,162 |
|
|
546,066 |
|
|
Other liabilities |
|
31,012 |
|
|
32,852 |
|
|
34,846 |
|
|
31,822 |
|
|
30,047 |
|
|
Shareholders' equity |
|
231,964 |
|
|
222,950 |
|
|
198,862 |
|
|
224,911 |
|
|
184,881 |
|
|
Total liabilities and shareholders' equity |
|
$ |
2,519,898 |
|
|
$ |
2,553,552 |
|
|
$ |
2,517,175 |
|
|
$ |
2,523,101 |
|
|
$ |
2,251,894 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Yields:
(3) |
|
|
|
|
|
|
|
|
|
|
|
Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
Gross loans |
|
4.60 |
% |
|
4.32 |
% |
|
3.98 |
% |
|
4.42 |
% |
|
4.40 |
% |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
1.57 |
% |
|
1.60 |
% |
|
1.86 |
% |
|
1.59 |
% |
|
2.08 |
% |
|
Tax-exempt |
|
2.99 |
% |
|
3.03 |
% |
|
3.19 |
% |
|
3.04 |
% |
|
3.20 |
% |
|
Interest earning cash balances |
|
0.15 |
% |
|
0.11 |
% |
|
0.12 |
% |
|
0.12 |
% |
|
0.28 |
% |
|
Other investments |
|
2.95 |
% |
|
3.40 |
% |
|
5.57 |
% |
|
3.18 |
% |
|
4.49 |
% |
|
Total interest earning assets |
|
3.76 |
% |
|
3.65 |
% |
|
3.41 |
% |
|
3.72 |
% |
|
3.84 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
0.14 |
% |
|
0.15 |
% |
|
0.22 |
% |
|
0.15 |
% |
|
0.31 |
% |
|
Money market and savings deposits |
|
0.17 |
% |
|
0.18 |
% |
|
0.43 |
% |
|
0.20 |
% |
|
0.65 |
% |
|
Time deposits |
|
0.53 |
% |
|
0.54 |
% |
|
1.18 |
% |
|
0.58 |
% |
|
1.55 |
% |
|
Borrowings |
|
1.02 |
% |
|
1.03 |
% |
|
0.70 |
% |
|
1.02 |
% |
|
0.80 |
% |
|
Subordinated notes |
|
5.00 |
% |
|
5.32 |
% |
|
5.65 |
% |
|
5.09 |
% |
|
5.72 |
% |
|
Total interest-bearing liabilities |
|
0.48 |
% |
|
0.55 |
% |
|
0.88 |
% |
|
0.55 |
% |
|
1.15 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| Interest
Spread |
|
3.28 |
% |
|
3.10 |
% |
|
2.53 |
% |
|
3.17 |
% |
|
2.69 |
% |
| Net interest
margin(4) |
|
3.44 |
% |
|
3.27 |
% |
|
2.78 |
% |
|
3.33 |
% |
|
3.01 |
% |
| Tax equivalent
effect |
|
0.03 |
% |
|
0.03 |
% |
|
0.02 |
% |
|
0.03 |
% |
|
0.03 |
% |
| Net interest margin on
a fully tax equivalent basis |
|
3.47 |
% |
|
3.30 |
% |
|
2.80 |
% |
|
3.36 |
% |
|
3.04 |
% |
(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 $155 thousand,
$153 thousand, and $144 thousand on tax-exempt securities for
the three months ended September 30, 2021, June 30, 2021, and
September 30, 2020, respectively, and $462 thousand and
$431 thousand for the nine months ended September 30, 2021 and
2020, 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 |
|
(Dollars in thousands) |
|
September30, 2021 |
|
June 30,2021 |
|
March 31,2021 |
|
December31, 2020 |
|
September30, 2020 |
|
Commercial real estate: |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
Non-owner occupied |
|
$ |
479,633 |
|
|
$ |
477,715 |
|
|
$ |
449,690 |
|
|
$ |
445,810 |
|
|
$ |
460,708 |
|
|
Owner-occupied |
|
295,228 |
|
|
301,615 |
|
|
300,175 |
|
|
275,022 |
|
|
269,481 |
|
|
Total commercial real estate |
|
774,861 |
|
|
779,330 |
|
|
749,865 |
|
|
720,832 |
|
|
730,189 |
|
| Commercial and industrial |
|
540,546 |
|
|
642,606 |
|
|
794,096 |
|
|
685,504 |
|
|
807,923 |
|
| Residential real estate |
|
403,517 |
|
|
352,513 |
|
|
316,089 |
|
|
315,476 |
|
|
304,088 |
|
| Consumer |
|
793 |
|
|
794 |
|
|
1,641 |
|
|
1,725 |
|
|
1,688 |
|
|
Total loans |
|
$ |
1,719,717 |
|
|
$ |
1,775,243 |
|
|
$ |
1,861,691 |
|
|
$ |
1,723,537 |
|
|
$ |
1,843,888 |
|
| Impaired
Assets |
|
|
|
|
|
|
|
|
|
|
| |
|
As of |
|
(Dollars in thousands) |
|
September30, 2021 |
|
June 30,2021 |
|
March 31,2021 |
|
December31, 2020 |
|
September30, 2020 |
|
Nonaccrual loans |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
Commercial real estate |
|
$ |
3,768 |
|
|
$ |
4,536 |
|
|
$ |
4,542 |
|
|
$ |
7,320 |
|
|
$ |
7,022 |
|
|
Commercial and industrial |
|
4,746 |
|
|
5,247 |
|
|
6,822 |
|
|
7,490 |
|
|
8,078 |
|
|
Residential real estate |
|
3,610 |
|
|
3,931 |
|
|
3,987 |
|
|
3,991 |
|
|
4,151 |
|
|
Consumer |
|
9 |
|
|
10 |
|
|
13 |
|
|
15 |
|
|
15 |
|
|
Total nonaccrual loans |
|
12,133 |
|
|
13,724 |
|
|
15,364 |
|
|
18,816 |
|
|
19,266 |
|
| Other real estate owned |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Total nonperforming assets |
|
12,133 |
|
|
13,724 |
|
|
15,364 |
|
|
18,816 |
|
|
19,266 |
|
| Performing troubled debt
restructurings |
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
336 |
|
|
336 |
|
|
335 |
|
|
546 |
|
|
550 |
|
|
Residential real estate |
|
426 |
|
|
429 |
|
|
430 |
|
|
432 |
|
|
599 |
|
|
Total performing troubled debt restructurings |
|
762 |
|
|
765 |
|
|
765 |
|
|
978 |
|
|
1,149 |
|
|
Total impaired assets |
|
$ |
12,895 |
|
|
$ |
14,489 |
|
|
$ |
16,129 |
|
|
$ |
19,794 |
|
|
$ |
20,415 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Loans 90 days or more past due
and still accruing |
|
$ |
162 |
|
|
$ |
387 |
|
|
$ |
328 |
|
|
$ |
269 |
|
|
$ |
552 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
(Dollars in thousands, except per share data) |
|
September2021 |
|
June 30,2021 |
|
March 31,2021 |
|
December 31,2020 |
|
September30, 2020 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
Total shareholders' equity |
|
$ |
233,934 |
|
|
$ |
225,409 |
|
|
$ |
217,187 |
|
|
$ |
215,327 |
|
|
$ |
209,468 |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
| Preferred stock |
|
23,372 |
|
|
23,372 |
|
|
23,372 |
|
|
23,372 |
|
|
23,370 |
|
| Total common shareholders'
equity |
|
210,562 |
|
|
202,037 |
|
|
193,815 |
|
|
191,955 |
|
|
186,098 |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
| Goodwill |
|
35,554 |
|
|
35,554 |
|
|
35,554 |
|
|
35,554 |
|
|
35,554 |
|
| Mortgage servicing rights,
net |
|
5,051 |
|
|
4,599 |
|
|
4,346 |
|
|
3,361 |
|
|
2,193 |
|
| Other intangible assets,
net |
|
2,695 |
|
|
2,862 |
|
|
3,028 |
|
|
3,196 |
|
|
3,388 |
|
| Tangible common shareholders'
equity |
|
$ |
167,262 |
|
|
$ |
159,022 |
|
|
$ |
150,887 |
|
|
$ |
149,844 |
|
|
$ |
144,963 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Common shares outstanding (in
thousands) |
|
7,640 |
|
|
7,629 |
|
|
7,630 |
|
|
7,634 |
|
|
7,734 |
|
| Tangible book value per common
share |
|
$ |
21.89 |
|
|
$ |
20.84 |
|
|
$ |
19.78 |
|
|
$ |
19.63 |
|
|
$ |
18.74 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
2,543,883 |
|
|
$ |
2,506,523 |
|
|
$ |
2,572,726 |
|
|
$ |
2,442,982 |
|
|
$ |
2,446,447 |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
| Goodwill |
|
35,554 |
|
|
35,554 |
|
|
35,554 |
|
|
35,554 |
|
|
35,554 |
|
| Mortgage servicing rights,
net |
|
5,051 |
|
|
4,599 |
|
|
4,346 |
|
|
3,361 |
|
|
2,193 |
|
| Other intangible assets,
net |
|
2,695 |
|
|
2,862 |
|
|
3,028 |
|
|
3,196 |
|
|
3,388 |
|
| Tangible assets |
|
$ |
2,500,583 |
|
|
$ |
2,463,508 |
|
|
$ |
2,529,798 |
|
|
$ |
2,400,871 |
|
|
$ |
2,405,312 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Tangible common equity to
tangible assets |
|
6.69 |
% |
|
6.46 |
% |
|
5.96 |
% |
|
6.24 |
% |
|
6.03 |
% |
| Adjusted
Income and Diluted Earnings Per Share |
| |
|
For the three months ended |
|
(Dollars in thousands, except per share data) |
|
September2021 |
|
June 30,2021 |
|
March 31,2021 |
|
December31, 2020 |
|
September30, 2020 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
Net income, as reported |
|
$ |
9,465 |
|
|
$ |
6,979 |
|
|
$ |
8,959 |
|
|
$ |
8,373 |
|
|
$ |
5,209 |
|
| Acquisition and due diligence
fees |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
17 |
|
| Income tax (benefit) expense
(1) |
|
— |
|
|
— |
|
|
— |
|
|
2 |
|
|
(4 |
) |
| Net income, excluding
acquisition and due diligence fees |
|
$ |
9,465 |
|
|
$ |
6,979 |
|
|
$ |
8,959 |
|
|
$ |
8,375 |
|
|
$ |
5,222 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Diluted earnings per share, as
reported |
|
$ |
1.16 |
|
|
$ |
0.84 |
|
|
$ |
1.10 |
|
|
$ |
1.02 |
|
|
$ |
0.67 |
|
| Effect of acquisition and due
diligence fees, net of income tax benefit |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Diluted earnings per common
share, excluding acquisition and due diligence fees |
|
$ |
1.16 |
|
|
$ |
0.84 |
|
|
$ |
1.10 |
|
|
$ |
1.02 |
|
|
$ |
0.67 |
|
(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 |
|
(Dollars in thousands, except per share data) |
|
September2021 |
|
June 30,2021 |
|
March 31,2021 |
|
December31, 2020 |
|
September30, 2020 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
Total loans |
|
$ |
1,719,717 |
|
|
$ |
1,775,243 |
|
|
$ |
1,861,691 |
|
|
$ |
1,723,537 |
|
|
$ |
1,843,888 |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
PPP loans |
|
147,645 |
|
|
259,303 |
|
|
405,770 |
|
|
290,135 |
|
|
392,521 |
|
| Total loans, excluding PPP
loans |
|
$ |
1,572,072 |
|
|
$ |
1,515,940 |
|
|
$ |
1,455,921 |
|
|
$ |
1,433,402 |
|
|
$ |
1,451,367 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Allowance for loan loss |
|
$ |
21,731 |
|
|
$ |
23,144 |
|
|
$ |
22,578 |
|
|
$ |
22,297 |
|
|
$ |
21,254 |
|
| Allowance for loan loss as a
percentage of total loans |
|
1.26 |
% |
|
1.30 |
% |
|
1.21 |
% |
|
1.29 |
% |
|
1.15 |
% |
| Allowance for loan loss as a
percentage of total loans, excluding PPP loans |
|
1.38 |
% |
|
1.53 |
% |
|
1.55 |
% |
|
1.56 |
% |
|
1.46 |
% |
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
