Level One Bancorp, Inc. (“Level One”) (Nasdaq: LEVL) today reported
its financial results for the fourth quarter of 2021, which
included net income of $7.1 million, or $0.85 diluted earnings per
common share. This compares to net income of $8.4 million, or $1.02
diluted earnings per common share, in the fourth quarter of 2020.
Patrick J. Fehring, Chief Executive Officer of Level One,
commented, "We closed out 2021 with solid fourth quarter earnings
of $7.1 million while generating record net income for 2021 of
$32.5 million, a 59.10% increase over 2020 net income. During 2021
we provided over $234.3 million through the SBA Paycheck Protection
Program (“PPP”) in lending support of our business clients. Level
One Bank continues to benefit from the new relationships formed
through the SBA PPP program. Additionally, we increased total loans
net of PPP loans by 9.97%, increased deposits by 3.91%, and reduced
our non-performing assets by $7.3 million or 38.93% from December
31, 2020. Most importantly, we are proud of the unwavering
commitment of our entire Level One Team to our clients and the
communities we serve."
Fourth Quarter 2021
Highlights
- Total loans decreased 3.89% to $1.65 billion at December 31,
2021, compared to $1.72 billion at September 30, 2021
- Total loans, excluding a decrease of $71.1 million of PPP
loans, increased $4.2 million, or 1.07% annualized, during the
fourth quarter of 2021
- Total assets decreased 1.10% to $2.52 billion at December 31,
2021, compared to $2.54 billion at September 30, 2021
- Total deposits decreased 1.30% to $2.04 billion at December 31,
2021, compared to $2.07 billion at September 30, 2021
- Book value per common share increased 1.67% to $28.02 per
common share at December 31, 2021, compared to $27.56 per common
share at September 30, 2021
- Tangible book value per common share increased 2.19% to $22.37
per common share at December 31, 2021, compared to $21.89 per
common share at September 30, 2021
- Net income of $7.1 million decreased 25.25% from $9.5 million
in the preceding quarter
- Diluted earnings per common share of $0.85 decreased 26.72%
compared to $1.16 in the preceding quarter, and 16.67% compared to
$1.02 in the fourth quarter of 2020.
- Net interest margin, on a fully taxable equivalent ("FTE")
basis, was 3.22%, compared to 3.47% in the preceding quarter and
3.27% in the fourth quarter of 2020
- Noninterest income decreased $1.3 million to $4.7 million in
the fourth quarter of 2021, compared to $6.0 million in the
preceding quarter
- Noninterest expense increased $134 thousand to $16.1 million in
the fourth quarter of 2021, compared to $16.0 million in the
preceding quarter, and included $609 thousand in merger related
expenses
- Provision for loan loss increased $848 thousand to a $341
thousand recovery of provision in the fourth quarter of 2021,
compared to a $1.2 million recovery of provision in the preceding
quarter
Net Interest Income and Net Interest Margin
Level One's net interest income decreased $1.2 million, or
5.87%, to $19.3 million in the fourth quarter of 2021, compared to
$20.5 million in the preceding quarter, and increased $205
thousand, or 1.07%, compared to $19.1 million in the fourth quarter
of 2020. The decrease in net interest income compared to the
preceding quarter was primarily due to a decrease of $1.4 million
of interest income on loans as a result of lower average loan
balances and fewer PPP loans forgiven. The increase in net interest
income year over year was primarily due to an increase of $432
thousand of interest on investment securities due to increased
volumes of investment securities and decreases in interest expense
on deposits of $1.1 million due to lower interest rates paid as a
result of revised internal deposit rates and interest expense on
subordinated notes of $241 thousand due to the redemption of $15.0
million in subordinated notes. This was partially offset by a
decrease of $1.6 million of interest income on loans.
Level One’s net interest margin, on a FTE basis, was 3.22% in
the fourth quarter of 2021, compared to 3.47% in the preceding
quarter and 3.27% in the fourth quarter of 2020. The decrease in
the net interest margin compared to the preceding quarter was
primarily a result of a decrease in average loan yields of 14 basis
points to 4.46% in the fourth quarter of 2021 compared to 4.60% in
the preceding quarter. The decrease in average loan yields was
primarily due to a shift in the loan mix as a result of pay downs
on commercial loans with significant increases in residential loan
balances and fewer PPP loans forgiven.
Noninterest Income
Level One's noninterest income decreased $1.3 million, or
21.75%, to $4.7 million in the fourth quarter of 2021, compared to
$6.0 million in the preceding quarter, and decreased $3.4 million,
or 41.71%, compared to $8.1 million in the fourth quarter of 2020.
The decrease in noninterest income compared to the preceding
quarter was primarily attributable to a decrease of $1.1 million in
mortgage banking activities and a decrease of $220 thousand in
other charges and fees. The decrease in the mortgage banking
activities income compared to the preceding quarter was primarily
due to $2.4 million fewer residential loan originations held for
sale and $10.2 million fewer residential loans sold as well as
smaller margins on loans sold. The decrease in other charges and
fees compared to the preceding quarter was primarily due to no
interest rate swap fees and fewer tax credits as a result of
legislation enacted in response to the COVID-19 pandemic recognized
during the preceding quarter.
The decrease in noninterest income in the fourth quarter of 2021
compared to the same period in 2020 was primarily due to a decrease
of $3.7 million in mortgage banking activities. This was partially
offset by an increase of $227 thousand in service charges on
deposits. The decrease in mortgage banking activities compared to
the fourth quarter of 2020 was primarily due to $41.6 million fewer
residential loan originations held for sale and $51.2 million fewer
residential loans sold. The higher volumes in the fourth quarter of
2020 were primarily as a result of the significant decrease in
interest rates during 2020 while interest rates have remained
relatively stable in 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 $134 thousand, or
0.84%, to $16.1 million in the fourth quarter of 2021, compared to
$16.0 million in the preceding quarter, and increased $662
thousand, or 4.28%, compared to $15.5 million in the fourth quarter
of 2020. The increase in noninterest expense compared to the
preceding quarter was primarily attributable to increases of $738
thousand in other expenses and $431 thousand in professional
service fees partially offset by a decrease of $1.0 million in
salary and employee benefits. The increase in other expenses
compared to the third quarter of 2021 was primarily due to
increases of $569 thousand in fraud losses and $123 thousand in
provision for unfunded commitments. The increase in professional
service fees was primarily due to increases of $185 thousand in
other professional fees and $153 thousand in legal fees as a result
of the merger, as well as a $105 thousand increase in audit fees.
The decrease in salary and employee benefits compared to the
preceding quarter was primarily due to decreases of $414 thousand
in mortgage commissions and $100 thousand in incentive compensation
along with an increase of $342 thousand in deferred loan costs.
The increase in noninterest expense in the fourth quarter of
2021 compared to the same period in 2020 was mainly attributable to
increases of $914 thousand in other expenses, $484 thousand in
professional service fees, and $199 thousand in marketing expense.
These increases were partially offset by decreases of $686 thousand
in salary and employee benefits and $148 thousand in FDIC premium
expense. The increase in other expenses compared to the fourth
quarter of 2020 was primarily due to increases of $573 thousand in
fraud losses and $197 thousand in captive insurance reserves. The
increase in professional service fees was primarily due to
increases of $312 thousand in legal fees and $196 thousand in other
professional fees as a result of merger related costs. The increase
in marketing expense was primarily due to general marketing and
advertising for the bank. The decrease in salary and employee
benefits compared to the fourth quarter of 2020 was primarily due
to a decrease of $634 thousand in incentive compensation and an
increase of $452 thousand in deferred loan costs partially offset
by an increase of $444 thousand in salaries expense. The decrease
in FDIC premium expense was primarily due to an improvement in our
capital ratios and income levels.
The efficiency ratio, which is a measure of operating expenses
as a percentage of net interest income and noninterest income, was
67.07% for the fourth quarter of 2021, compared to 60.21% for the
preceding quarter and 56.81% in the fourth quarter of 2020.
Income Tax Expense
Level One's income tax provision was $1.2 million, or 14.30% of
pretax income, in the fourth quarter of 2021, as compared to $2.3
million, or 19.49% of pretax income, in the preceding quarter and
$1.8 million, or 18.05% of pretax income, in the fourth quarter of
2020.
Loan Portfolio
Total loans were $1.65 billion at December 31, 2021, a decrease
of $66.9 million, or 3.89%, from $1.72 billion at September 30,
2021, and down $70.8 million, or 4.11%, from $1.72 billion at
December 31, 2020. The decrease in total loans compared to
September 30, 2021 was primarily due to $71.1 million of PPP loans
forgiven by the SBA during the fourth quarter partially offset by a
net increase of $4.2 million, or 1.07% annualized growth, in the
remainder of the loan portfolio. The decrease in total loans
compared to December 31, 2020, was primarily due to a $213.6
million net decrease in PPP loans (originated and forgiven) which
was partially offset by a net increase of $142.9 million in the
remainder of the loan portfolio.
Investment Securities
The investment securities portfolio grew $8.1 million, or 2.06%,
to $397.6 million at December 31, 2021, from $389.5 million at
September 30, 2021, and up $94.9 million, or 31.32%, from $302.7
million at December 31, 2020. The increase in the investment
securities portfolio compared to September 30, 2021 was primarily
due to the purchase of $20.6 million of investment securities using
excess cash balances generated by payoffs of PPP loans, partially
offset in part by $12.6 million of sales, calls, or maturity of
investment securities, principal pay downs, amortization and
accretion, and fair market value adjustments. The increase in
investment securities compared to December 31, 2020, was primarily
due to the purchase of $135.9 million of securities between the two
dates using excess cash balances generated by the payoffs and
forgiveness of PPP loans, partially offset by $41.1 million of
sales, calls, or maturity of investment securities, principal pay
downs, amortization and accretion, and fair market value
adjustments.
Deposits
Total deposits were $2.04 billion at December 31, 2021, a
decrease of $26.9 million, or 1.30%, from $2.07 billion at
September 30, 2021, and up $76.8 million, or 3.91%, from $1.96
billion at December 31, 2020. The decrease in deposits compared to
September 30, 2021 was primarily due to runoff related to deposit
pricing opportunities. The growth in deposits compared to December
31, 2020 was primarily due to organic deposit growth as a result of
increased customer liquidity and new customer growth. Total deposit
composition at December 31, 2021 consisted of 50.86% of demand
deposit accounts, 28.27% of savings and money market accounts and
20.87% of time deposits.
Borrowings
Total debt outstanding was $208.4 million at December 31, 2021,
a decrease of $3.3 million, or 1.58%, from $211.7 million at
September 30, 2021, and down $21.9 million, or 9.51%, from $230.3
million at December 31, 2020. The decrease in total borrowings
compared to September 30, 2021 was primarily due to a decrease of
$3.0 million in FHLB borrowings. The decrease in total borrowings
compared to December 31, 2020 was primarily due to a decrease of
$6.0 million in FHLB borrowings as well as the redemption of $15.0
million of subordinated notes. The Company would have paid
approximately $721 thousand in interest in 2021 on the redeemed
subordinated notes.
Asset Quality
Nonaccrual loans were $11.3 million, or 0.68% of total loans, at
December 31, 2021, a decrease of $844 thousand from nonaccrual
loans of $12.1 million, or 0.71% of total loans, at September 30,
2021, and a decrease of $7.5 million from nonaccrual loans of $18.8
million, or 1.09% of total loans, at December 31, 2020. The
decrease in nonaccrual loans compared to December 31, 2020 was
primarily due to pay offs of four commercial loan relationships
totaling $5.4 million, paydowns on four commercial loan
relationships totaling $3.9 million, and one $759 thousand
residential loan relationship moving back to accruing. This was
partially offset by two commercial loan relationships moving to
nonaccrual status totaling $2.6 million.
Nonperforming assets, consisting of nonaccrual loans and other
real estate owned, as a percentage of total assets were 0.46% at
December 31, 2021, compared to 0.48% at September 30, 2021, and
0.77% at December 31, 2020.
Performing troubled debt restructured loans, which are not
reported as nonaccrual loans but rather as part of impaired loans,
were $699 thousand at December 31, 2021 compared to $762 thousand
at September 30, 2021, and $978 thousand at December 31, 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 December 31, 2021, there were no loans
that remained on a COVID-related deferral compared to $1.1 million
as of September 30, 2021.
Net recoveries in the fourth quarter of 2021 were $35 thousand,
or 0.01% of average loans on an annualized basis, compared to $224
thousand of net charge-offs, or 0.05% of average loans on an
annualized basis for the preceding quarter and $496 thousand of net
charge-offs, or 0.11% of average loans on an annualized basis, in
the fourth quarter of 2020.
Level One's provision for loan losses in the fourth quarter of
2021 was a provision recovery of $341 thousand, compared to
provision recovery of $1.2 million in the preceding quarter and
provision expense of $1.5 million in the fourth quarter of 2020.
The decrease in the provision recovery quarter over quarter was
primarily due to an increase of $1.2 million in general reserve
expense as a result of a reduction in qualitative factors within
the allowance for loan loss model as a result of improved credit
quality during the preceding quarter, partially offset by a
decrease in net charge-offs of $261 thousand. The decrease in the
provision expense in the fourth quarter of 2021 compared to the
same period in 2020 was primarily due to a decrease in general
reserves of $2.0 million resulting from a decrease in qualitative
factors and a decrease of $532 thousand in net charge-offs. This
was partially offset by a $445 thousand increase 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 $21.4 million, or 1.30% of
total loans, at December 31, 2021, compared to $21.7 million, or
1.26% of total loans, at September 30, 2021, and $22.3 million, or
1.29% of total loans, at December 31, 2020. Excluding PPP loans of
$76.5 million, $147.6 million, and $290.1 million as of these
dates, respectively, the allowance for loan losses as a percentage
of total loans was 1.36% as of December 31, 2021, compared to 1.38%
as of September 30, 2021 and 1.56% as of December 31, 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 excluding PPP loans decreased compared to
December 31, 2020 as a result of a reduction in qualitative factors
within the allowance for loan loss model as a result of improved
credit quality. As of December 31, 2021, the allowance for loan
losses as a percentage of nonaccrual loans was 189.79%, compared to
179.11% at September 30, 2021, and 118.50% at December 31,
2020.
Capital
Total shareholders’ equity was $240.1 million at December 31,
2021, an increase of $6.2 million, or 2.63%, compared with $233.9
million at September 30, 2021, and increased $24.8 million, or
11.50%, from $215.3 million at December 31, 2020. The increase in
shareholders' equity quarter over quarter and year over year was
primarily as a result of an increase in retained earnings.
Recent Developments
Fourth Quarter Common Stock
Dividend: On December 15, 2021, Level
One’s Board of Directors declared a quarterly cash dividend of
$0.06 per share. This dividend was paid on January 15, 2022, to
stockholders of record at the close of business on December 31,
2021.
First Quarter Preferred Stock Dividend: On
January 19, 2022, 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 February 15, 2022, to shareholders of record
at the close of business on January 31, 2022.
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 $2.52 billion as of December
31, 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 in connection with the transition from
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, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(Dollars in thousands, except per share data) |
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
Earnings Summary |
|
|
|
|
|
|
|
|
|
Interest income |
$ |
21,040 |
|
|
$ |
22,322 |
|
|
$ |
21,737 |
|
|
$ |
21,551 |
|
|
$ |
22,181 |
|
Interest expense |
|
1,729 |
|
|
|
1,807 |
|
|
|
2,121 |
|
|
|
2,394 |
|
|
|
3,075 |
|
Net interest income |
|
19,311 |
|
|
|
20,515 |
|
|
|
19,616 |
|
|
|
19,157 |
|
|
|
19,106 |
|
Provision expense (recovery)
for loan losses |
|
(341 |
) |
|
|
(1,189 |
) |
|
|
540 |
|
|
|
265 |
|
|
|
1,538 |
|
Noninterest income |
|
4,727 |
|
|
|
6,041 |
|
|
|
4,326 |
|
|
|
7,278 |
|
|
|
8,110 |
|
Noninterest expense |
|
16,123 |
|
|
|
15,989 |
|
|
|
14,588 |
|
|
|
15,139 |
|
|
|
15,461 |
|
Income before income
taxes |
|
8,256 |
|
|
|
11,756 |
|
|
|
8,814 |
|
|
|
11,031 |
|
|
|
10,217 |
|
Income tax provision |
|
1,181 |
|
|
|
2,291 |
|
|
|
1,835 |
|
|
|
2,072 |
|
|
|
1,844 |
|
Net income |
$ |
7,075 |
|
|
$ |
9,465 |
|
|
$ |
6,979 |
|
|
$ |
8,959 |
|
|
$ |
8,373 |
|
Preferred stock dividends |
|
469 |
|
|
|
468 |
|
|
|
469 |
|
|
|
469 |
|
|
|
479 |
|
Net income available to common
shareholders |
|
6,606 |
|
|
|
8,997 |
|
|
|
6,510 |
|
|
|
8,490 |
|
|
|
7,894 |
|
Net income allocated to
participating securities |
|
100 |
|
|
|
138 |
|
|
|
92 |
|
|
|
111 |
|
|
|
65 |
|
Net income attributable to
common shareholders |
$ |
6,506 |
|
|
$ |
8,859 |
|
|
$ |
6,418 |
|
|
$ |
8,379 |
|
|
$ |
7,829 |
|
Per Share
Data |
|
|
|
|
|
|
|
|
|
Basic earnings per common
share |
$ |
0.86 |
|
|
$ |
1.19 |
|
|
$ |
0.85 |
|
|
$ |
1.11 |
|
|
$ |
1.02 |
|
Diluted earnings per common
share |
|
0.85 |
|
|
|
1.16 |
|
|
|
0.84 |
|
|
|
1.10 |
|
|
|
1.02 |
|
Book value per common
share |
|
28.02 |
|
|
|
27.56 |
|
|
|
26.48 |
|
|
|
25.40 |
|
|
|
25.14 |
|
Tangible book value per common
share (1) |
|
22.37 |
|
|
|
21.89 |
|
|
|
20.84 |
|
|
|
19.78 |
|
|
|
19.63 |
|
Preferred shares outstanding
(in thousands) |
|
10 |
|
|
|
10 |
|
|
|
10 |
|
|
|
10 |
|
|
|
10 |
|
Common shares outstanding (in
thousands) |
|
7,734 |
|
|
|
7,640 |
|
|
|
7,629 |
|
|
|
7,630 |
|
|
|
7,634 |
|
Average basic common shares
(in thousands) |
|
7,565 |
|
|
|
7,519 |
|
|
|
7,520 |
|
|
|
7,528 |
|
|
|
7,642 |
|
Average diluted common shares
(in thousands) |
|
7,706 |
|
|
|
7,638 |
|
|
|
7,633 |
|
|
|
7,612 |
|
|
|
7,695 |
|
Selected Period End
Balances |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
2,515,869 |
|
|
$ |
2,543,883 |
|
|
$ |
2,506,523 |
|
|
$ |
2,572,726 |
|
|
$ |
2,442,982 |
|
Securities
available-for-sale |
|
397,551 |
|
|
|
389,528 |
|
|
|
376,453 |
|
|
|
346,266 |
|
|
|
302,732 |
|
Total loans |
|
1,652,771 |
|
|
|
1,719,717 |
|
|
|
1,775,243 |
|
|
|
1,861,691 |
|
|
|
1,723,537 |
|
Total deposits |
|
2,040,082 |
|
|
|
2,066,992 |
|
|
|
2,031,808 |
|
|
|
2,093,965 |
|
|
|
1,963,312 |
|
Total liabilities |
|
2,275,778 |
|
|
|
2,309,949 |
|
|
|
2,281,114 |
|
|
|
2,355,539 |
|
|
|
2,227,655 |
|
Total shareholders'
equity |
|
240,091 |
|
|
|
233,934 |
|
|
|
225,409 |
|
|
|
217,187 |
|
|
|
215,327 |
|
Total common shareholders'
equity |
|
216,719 |
|
|
|
210,562 |
|
|
|
202,037 |
|
|
|
193,815 |
|
|
|
191,955 |
|
Tangible common shareholders'
equity (1) |
|
173,033 |
|
|
|
167,262 |
|
|
|
159,022 |
|
|
|
150,887 |
|
|
|
149,844 |
|
Performance and
Capital Ratios |
|
|
|
|
|
|
|
|
|
Return on average assets
(annualized) |
|
1.11 |
% |
|
|
1.50 |
% |
|
|
1.09 |
% |
|
|
1.44 |
% |
|
|
1.35 |
% |
Return on average equity
(annualized) |
|
11.92 |
|
|
|
16.32 |
|
|
|
12.52 |
|
|
|
16.31 |
|
|
|
15.61 |
|
Net interest margin (fully
taxable equivalent)(2) |
|
3.22 |
|
|
|
3.47 |
|
|
|
3.30 |
|
|
|
3.33 |
|
|
|
3.27 |
|
Efficiency ratio (noninterest
expense/net interest income plus noninterest income) |
|
67.07 |
|
|
|
60.21 |
|
|
|
60.93 |
|
|
|
57.27 |
|
|
|
56.81 |
|
Dividend payout ratio |
|
6.96 |
|
|
|
5.08 |
|
|
|
7.02 |
|
|
|
4.50 |
|
|
|
4.90 |
|
Total shareholders' equity to
total assets |
|
9.54 |
|
|
|
9.20 |
|
|
|
8.99 |
|
|
|
8.44 |
|
|
|
8.81 |
|
Tangible common equity to
tangible assets (1) |
|
7.00 |
|
|
|
6.69 |
|
|
|
6.46 |
|
|
|
5.96 |
|
|
|
6.24 |
|
Common equity tier 1 to
risk-weighted assets |
|
10.37 |
|
|
|
9.82 |
|
|
|
9.66 |
|
|
|
9.63 |
|
|
|
9.30 |
|
Tier 1 capital to
risk-weighted assets |
|
11.75 |
|
|
|
11.19 |
|
|
|
11.09 |
|
|
|
11.11 |
|
|
|
10.80 |
|
Total capital to risk-weighted
assets |
|
14.76 |
|
|
|
14.19 |
|
|
|
14.15 |
|
|
|
15.18 |
|
|
|
14.91 |
|
Tier 1 capital to average
assets (leverage ratio) |
|
7.93 |
|
|
|
7.68 |
|
|
|
7.24 |
|
|
|
7.15 |
|
|
|
6.93 |
|
Asset Quality
Ratios: |
|
|
|
|
|
|
|
|
|
Net charge-offs (recoveries)
to average loans |
|
(0.01 |
)% |
|
|
0.05 |
% |
|
|
(0.01 |
)% |
|
|
— |
% |
|
|
0.11 |
% |
Nonperforming assets as a
percentage of total assets |
|
0.46 |
|
|
|
0.48 |
|
|
|
0.55 |
|
|
|
0.60 |
|
|
|
0.77 |
|
Nonaccrual loans as a percent
of total loans |
|
0.68 |
|
|
|
0.71 |
|
|
|
0.77 |
|
|
|
0.83 |
|
|
|
1.09 |
|
Allowance for loan losses as a
percentage of total loans |
|
1.30 |
|
|
|
1.26 |
|
|
|
1.30 |
|
|
|
1.21 |
|
|
|
1.29 |
|
Allowance for loan losses as a
percentage of nonaccrual loans |
|
189.79 |
|
|
|
179.11 |
|
|
|
168.64 |
|
|
|
146.95 |
|
|
|
118.50 |
|
Allowance for loan losses as a
percentage of nonaccrual loans, excluding allowance allocated to
loans accounted for under ASC 310-30 |
|
184.58 |
|
|
|
173.58 |
|
|
|
163.76 |
|
|
|
142.62 |
|
|
|
114.95 |
|
(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 |
|
December 31, |
|
September 30, |
|
December 31, |
(Dollars in thousands) |
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
Assets |
(Unaudited) |
|
(Unaudited) |
|
|
Cash and cash equivalents |
$ |
330,146 |
|
|
$ |
293,824 |
|
|
$ |
264,071 |
|
Securities
available-for-sale |
|
397,551 |
|
|
|
389,528 |
|
|
|
302,732 |
|
Other investments |
|
14,398 |
|
|
|
14,398 |
|
|
|
14,398 |
|
Mortgage loans held for sale,
at fair value |
|
12,902 |
|
|
|
15,351 |
|
|
|
43,482 |
|
Loans: |
|
|
|
|
|
Originated loans |
|
1,486,969 |
|
|
|
1,537,145 |
|
|
|
1,498,458 |
|
Acquired loans |
|
165,802 |
|
|
|
182,572 |
|
|
|
225,079 |
|
Total loans |
|
1,652,771 |
|
|
|
1,719,717 |
|
|
|
1,723,537 |
|
Less: Allowance for loan losses |
|
(21,425 |
) |
|
|
(21,731 |
) |
|
|
(22,297 |
) |
Net loans |
|
1,631,346 |
|
|
|
1,697,986 |
|
|
|
1,701,240 |
|
Premises and equipment,
net |
|
14,903 |
|
|
|
15,170 |
|
|
|
15,834 |
|
Goodwill |
|
35,554 |
|
|
|
35,554 |
|
|
|
35,554 |
|
Mortgage servicing rights,
net |
|
5,604 |
|
|
|
5,051 |
|
|
|
3,361 |
|
Other intangible assets,
net |
|
2,528 |
|
|
|
2,695 |
|
|
|
3,196 |
|
Other real estate owned |
|
201 |
|
|
|
— |
|
|
|
— |
|
Bank-owned life insurance |
|
29,960 |
|
|
|
29,774 |
|
|
|
18,200 |
|
Income tax benefit |
|
4,829 |
|
|
|
4,041 |
|
|
|
3,686 |
|
Interest receivable and other
assets |
|
35,947 |
|
|
|
40,511 |
|
|
|
37,228 |
|
Total assets |
$ |
2,515,869 |
|
|
$ |
2,543,883 |
|
|
$ |
2,442,982 |
|
Liabilities |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest-bearing demand deposits |
$ |
796,782 |
|
|
$ |
791,879 |
|
|
$ |
618,677 |
|
Interest-bearing demand deposits |
|
240,781 |
|
|
|
179,814 |
|
|
|
127,920 |
|
Money market and savings deposits |
|
576,718 |
|
|
|
631,551 |
|
|
|
619,900 |
|
Time deposits |
|
425,801 |
|
|
|
463,748 |
|
|
|
596,815 |
|
Total deposits |
|
2,040,082 |
|
|
|
2,066,992 |
|
|
|
1,963,312 |
|
Borrowings |
|
178,682 |
|
|
|
182,058 |
|
|
|
185,684 |
|
Subordinated notes |
|
29,694 |
|
|
|
29,668 |
|
|
|
44,592 |
|
Other liabilities |
|
27,320 |
|
|
|
31,231 |
|
|
|
34,067 |
|
Total liabilities |
|
2,275,778 |
|
|
|
2,309,949 |
|
|
|
2,227,655 |
|
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 December 31, 2021, September 30,
2021 and December 31, 2020 |
|
23,372 |
|
|
|
23,372 |
|
|
|
23,372 |
|
Common stock, no par value per share; authorized - 20,000,000
shares; issued and outstanding - 7,733,726 shares at December 31,
2021, 7,639,544 shares at September 30, 2021 and 7,633,780 shares
at December 31, 2020 |
|
88,851 |
|
|
|
86,926 |
|
|
|
87,615 |
|
Retained earnings |
|
124,923 |
|
|
|
118,781 |
|
|
|
96,158 |
|
Accumulated other comprehensive income, net of tax |
|
2,945 |
|
|
|
4,855 |
|
|
|
8,182 |
|
Total shareholders' equity |
|
240,091 |
|
|
|
233,934 |
|
|
|
215,327 |
|
Total liabilities and
shareholders' equity |
$ |
2,515,869 |
|
|
$ |
2,543,883 |
|
|
$ |
2,442,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Income |
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Twelve months ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
(In thousands, except per share data) |
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
2021 |
|
|
|
2020 |
Interest income |
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
Originated loans, including
fees |
$ |
16,770 |
|
|
$ |
17,796 |
|
|
$ |
17,439 |
|
$ |
68,555 |
|
|
$ |
62,069 |
Acquired loans, including
fees |
|
2,277 |
|
|
|
2,651 |
|
|
|
3,234 |
|
|
10,809 |
|
|
|
14,421 |
Securities: |
|
|
|
|
|
|
|
|
|
Taxable |
|
1,141 |
|
|
|
1,054 |
|
|
|
747 |
|
|
4,036 |
|
|
|
2,677 |
Tax-exempt |
|
630 |
|
|
|
630 |
|
|
|
592 |
|
|
2,510 |
|
|
|
2,486 |
Federal funds sold and
other |
|
222 |
|
|
|
191 |
|
|
|
169 |
|
|
740 |
|
|
|
986 |
Total interest income |
|
21,040 |
|
|
|
22,322 |
|
|
|
22,181 |
|
|
86,650 |
|
|
|
82,639 |
Interest
Expense |
|
|
|
|
|
|
|
|
|
Deposits |
|
870 |
|
|
|
965 |
|
|
|
1,954 |
|
|
4,313 |
|
|
|
10,993 |
Borrowed funds |
|
466 |
|
|
|
468 |
|
|
|
487 |
|
|
1,875 |
|
|
|
2,353 |
Subordinated notes |
|
393 |
|
|
|
374 |
|
|
|
634 |
|
|
1,863 |
|
|
|
2,537 |
Total interest expense |
|
1,729 |
|
|
|
1,807 |
|
|
|
3,075 |
|
|
8,051 |
|
|
|
15,883 |
Net interest income |
|
19,311 |
|
|
|
20,515 |
|
|
|
19,106 |
|
|
78,599 |
|
|
|
66,756 |
Provision expense (recovery)
for loan losses |
|
(341 |
) |
|
|
(1,189 |
) |
|
|
1,538 |
|
|
(725 |
) |
|
|
11,872 |
Net interest income
after provision for loan losses |
|
19,652 |
|
|
|
21,704 |
|
|
|
17,568 |
|
|
79,324 |
|
|
|
54,884 |
Noninterest
income |
|
|
|
|
|
|
|
|
|
Service charges on
deposits |
|
875 |
|
|
|
859 |
|
|
|
648 |
|
|
3,311 |
|
|
|
2,446 |
Net gain on sales of
securities |
|
1 |
|
|
|
— |
|
|
|
— |
|
|
21 |
|
|
|
1,862 |
Mortgage banking
activities |
|
3,105 |
|
|
|
4,216 |
|
|
|
6,810 |
|
|
15,843 |
|
|
|
22,190 |
Other charges and fees |
|
746 |
|
|
|
966 |
|
|
|
652 |
|
|
3,197 |
|
|
|
3,216 |
Total noninterest income |
|
4,727 |
|
|
|
6,041 |
|
|
|
8,110 |
|
|
22,372 |
|
|
|
29,714 |
Noninterest
expense |
|
|
|
|
|
|
|
|
|
Salary and employee
benefits |
|
9,528 |
|
|
|
10,551 |
|
|
|
10,214 |
|
|
39,353 |
|
|
|
38,304 |
Occupancy and equipment
expense |
|
1,660 |
|
|
|
1,680 |
|
|
|
1,776 |
|
|
6,631 |
|
|
|
6,549 |
Professional service fees |
|
1,278 |
|
|
|
847 |
|
|
|
794 |
|
|
3,542 |
|
|
|
2,935 |
Acquisition and due diligence
fees |
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
1,654 |
FDIC premium expense |
|
249 |
|
|
|
244 |
|
|
|
397 |
|
|
1,027 |
|
|
|
1,119 |
Marketing expense |
|
446 |
|
|
|
428 |
|
|
|
247 |
|
|
1,288 |
|
|
|
956 |
Loan processing expense |
|
228 |
|
|
|
231 |
|
|
|
245 |
|
|
983 |
|
|
|
935 |
Data processing expense |
|
916 |
|
|
|
928 |
|
|
|
859 |
|
|
4,125 |
|
|
|
3,460 |
Core deposit premium
amortization |
|
167 |
|
|
|
167 |
|
|
|
192 |
|
|
668 |
|
|
|
768 |
Other expense |
|
1,651 |
|
|
|
913 |
|
|
|
737 |
|
|
4,222 |
|
|
|
3,552 |
Total noninterest expense |
|
16,123 |
|
|
|
15,989 |
|
|
|
15,461 |
|
|
61,839 |
|
|
|
60,232 |
Income before income
taxes |
|
8,256 |
|
|
|
11,756 |
|
|
|
10,217 |
|
|
39,857 |
|
|
|
24,366 |
Income tax provision |
|
1,181 |
|
|
|
2,291 |
|
|
|
1,844 |
|
|
7,379 |
|
|
|
3,953 |
Net income |
|
7,075 |
|
|
|
9,465 |
|
|
|
8,373 |
|
|
32,478 |
|
|
|
20,413 |
Preferred stock dividends |
|
469 |
|
|
|
468 |
|
|
|
479 |
|
|
1,875 |
|
|
|
479 |
Net income attributable to common
shareholders |
$ |
6,606 |
|
|
$ |
8,997 |
|
|
$ |
7,894 |
|
$ |
30,603 |
|
|
$ |
19,934 |
Earnings per common
share: |
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
$ |
0.86 |
|
|
$ |
1.19 |
|
|
$ |
1.02 |
|
$ |
4.00 |
|
|
$ |
2.58 |
Diluted earnings per common share |
$ |
0.85 |
|
|
$ |
1.16 |
|
|
$ |
1.02 |
|
$ |
3.95 |
|
|
$ |
2.57 |
Cash dividends declared per common share |
$ |
0.06 |
|
|
$ |
0.06 |
|
|
$ |
0.05 |
|
$ |
0.24 |
|
|
$ |
0.20 |
Weighted average
common shares outstanding—basic |
|
7,565 |
|
|
|
7,519 |
|
|
|
7,642 |
|
|
7,536 |
|
|
|
7,627 |
Weighted average
common shares outstanding—diluted |
|
7,706 |
|
|
|
7,638 |
|
|
|
7,695 |
|
|
7,650 |
|
|
|
7,686 |
Net
Interest Income and Net Interest Margin |
|
|
|
|
|
|
(Unaudited) |
For the three months ended |
|
For the twelve months ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
(Dollars in thousands) |
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Average Balance Sheets: |
|
|
|
|
|
|
|
|
|
Gross loans(1) |
$ |
1,696,073 |
|
|
$ |
1,763,214 |
|
|
$ |
1,832,912 |
|
|
$ |
1,791,671 |
|
|
$ |
1,730,470 |
|
Investment securities: (2) |
|
|
|
|
|
|
|
|
|
Taxable |
|
289,146 |
|
|
|
265,885 |
|
|
|
182,522 |
|
|
|
254,913 |
|
|
|
138,837 |
|
Tax-exempt |
|
104,945 |
|
|
|
104,063 |
|
|
|
92,792 |
|
|
|
103,609 |
|
|
|
96,020 |
|
Interest earning cash balances |
|
297,926 |
|
|
|
221,261 |
|
|
|
213,502 |
|
|
|
218,931 |
|
|
|
194,545 |
|
Other investments |
|
14,398 |
|
|
|
14,398 |
|
|
|
14,398 |
|
|
|
14,398 |
|
|
|
12,903 |
|
Total interest-earning assets |
$ |
2,402,488 |
|
|
$ |
2,368,821 |
|
|
$ |
2,336,126 |
|
|
$ |
2,383,522 |
|
|
$ |
2,172,775 |
|
Non-earning assets |
|
146,046 |
|
|
|
151,077 |
|
|
|
138,989 |
|
|
|
145,990 |
|
|
|
135,229 |
|
Total assets |
$ |
2,548,534 |
|
|
$ |
2,519,898 |
|
|
$ |
2,475,115 |
|
|
$ |
2,529,512 |
|
|
$ |
2,308,004 |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
215,685 |
|
|
|
156,977 |
|
|
|
123,201 |
|
|
|
162,405 |
|
|
|
115,249 |
|
Money market and savings deposits |
|
586,464 |
|
|
|
624,190 |
|
|
|
611,162 |
|
|
|
613,883 |
|
|
|
496,827 |
|
Time deposits |
|
455,439 |
|
|
|
489,261 |
|
|
|
601,900 |
|
|
|
519,447 |
|
|
|
573,823 |
|
Borrowings |
|
182,080 |
|
|
|
181,911 |
|
|
|
187,399 |
|
|
|
183,503 |
|
|
|
279,949 |
|
Subordinated notes |
|
29,677 |
|
|
|
29,657 |
|
|
|
44,569 |
|
|
|
36,376 |
|
|
|
44,490 |
|
Total interest-bearing liabilities |
$ |
1,469,345 |
|
|
$ |
1,481,996 |
|
|
$ |
1,568,231 |
|
|
$ |
1,515,614 |
|
|
$ |
1,510,338 |
|
Noninterest bearing demand deposits |
|
811,394 |
|
|
|
774,926 |
|
|
|
659,333 |
|
|
|
754,376 |
|
|
|
574,537 |
|
Other liabilities |
|
30,404 |
|
|
|
31,012 |
|
|
|
32,990 |
|
|
|
31,466 |
|
|
|
30,787 |
|
Shareholders' equity |
|
237,391 |
|
|
|
231,964 |
|
|
|
214,561 |
|
|
|
228,056 |
|
|
|
192,342 |
|
Total liabilities and shareholders' equity |
$ |
2,548,534 |
|
|
$ |
2,519,898 |
|
|
$ |
2,475,115 |
|
|
$ |
2,529,512 |
|
|
$ |
2,308,004 |
|
|
|
|
|
|
|
|
|
|
|
Yields:
(3) |
|
|
|
|
|
|
|
|
|
Earning Assets |
|
|
|
|
|
|
|
|
|
Gross loans |
|
4.46 |
% |
|
|
4.60 |
% |
|
|
4.49 |
% |
|
|
4.43 |
% |
|
|
4.42 |
% |
Investment securities: |
|
|
|
|
|
|
|
|
|
Taxable |
|
1.57 |
% |
|
|
1.57 |
% |
|
|
1.63 |
% |
|
|
1.58 |
% |
|
|
1.93 |
% |
Tax-exempt |
|
2.97 |
% |
|
|
2.99 |
% |
|
|
3.14 |
% |
|
|
3.02 |
% |
|
|
3.19 |
% |
Interest earning cash balances |
|
0.15 |
% |
|
|
0.15 |
% |
|
|
0.11 |
% |
|
|
0.13 |
% |
|
|
0.24 |
% |
Other investments |
|
3.00 |
% |
|
|
2.95 |
% |
|
|
2.98 |
% |
|
|
3.13 |
% |
|
|
4.07 |
% |
Total interest earning assets |
|
3.50 |
% |
|
|
3.76 |
% |
|
|
3.80 |
% |
|
|
3.66 |
% |
|
|
3.83 |
% |
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
0.14 |
% |
|
|
0.14 |
% |
|
|
0.19 |
% |
|
|
0.14 |
% |
|
|
0.28 |
% |
Money market and savings deposits |
|
0.16 |
% |
|
|
0.17 |
% |
|
|
0.35 |
% |
|
|
0.19 |
% |
|
|
0.56 |
% |
Time deposits |
|
0.49 |
% |
|
|
0.53 |
% |
|
|
0.89 |
% |
|
|
0.56 |
% |
|
|
1.38 |
% |
Borrowings |
|
1.02 |
% |
|
|
1.02 |
% |
|
|
1.03 |
% |
|
|
1.02 |
% |
|
|
0.84 |
% |
Subordinated notes |
|
5.25 |
% |
|
|
5.00 |
% |
|
|
5.66 |
% |
|
|
5.12 |
% |
|
|
5.70 |
% |
Total interest-bearing liabilities |
|
0.47 |
% |
|
|
0.48 |
% |
|
|
0.78 |
% |
|
|
0.53 |
% |
|
|
1.05 |
% |
|
|
|
|
|
|
|
|
|
|
Interest
Spread |
|
3.03 |
% |
|
|
3.28 |
% |
|
|
3.02 |
% |
|
|
3.13 |
% |
|
|
2.78 |
% |
Net interest
margin(4) |
|
3.19 |
% |
|
|
3.44 |
% |
|
|
3.25 |
% |
|
|
3.30 |
% |
|
|
3.07 |
% |
Tax equivalent
effect |
|
0.03 |
% |
|
|
0.03 |
% |
|
|
0.02 |
% |
|
|
0.03 |
% |
|
|
0.03 |
% |
Net interest margin on
a fully tax equivalent basis |
|
3.22 |
% |
|
|
3.47 |
% |
|
|
3.27 |
% |
|
|
3.33 |
% |
|
|
3.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $156 thousand,
$155 thousand, and $140 thousand on tax-exempt securities for
the three months ended December 31, 2021, September 30, 2021, and
December 31, 2020, respectively, and $617 thousand and
$574 thousand for the twelve months ended December 31, 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 |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(Dollars in thousands) |
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
Commercial real estate: |
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
Non-owner occupied |
$ |
467,364 |
|
$ |
479,633 |
|
$ |
477,715 |
|
$ |
449,690 |
|
$ |
445,810 |
Owner-occupied |
|
283,400 |
|
|
295,228 |
|
|
301,615 |
|
|
300,175 |
|
|
275,022 |
Total commercial real estate |
|
750,764 |
|
|
774,861 |
|
|
779,330 |
|
|
749,865 |
|
|
720,832 |
Commercial and industrial |
|
460,530 |
|
|
540,546 |
|
|
642,606 |
|
|
794,096 |
|
|
685,504 |
Residential real estate |
|
440,640 |
|
|
403,517 |
|
|
352,513 |
|
|
316,089 |
|
|
315,476 |
Consumer |
|
837 |
|
|
793 |
|
|
794 |
|
|
1,641 |
|
|
1,725 |
Total loans |
$ |
1,652,771 |
|
$ |
1,719,717 |
|
$ |
1,775,243 |
|
$ |
1,861,691 |
|
$ |
1,723,537 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired
Assets |
|
|
|
|
|
|
|
|
|
|
As of |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(Dollars in thousands) |
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
Nonaccrual loans |
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
Commercial real estate |
$ |
4,246 |
|
$ |
3,768 |
|
$ |
4,536 |
|
$ |
4,542 |
|
$ |
7,320 |
Commercial and industrial |
|
4,208 |
|
|
4,746 |
|
|
5,247 |
|
|
6,822 |
|
|
7,490 |
Residential real estate |
|
2,819 |
|
|
3,610 |
|
|
3,931 |
|
|
3,987 |
|
|
3,991 |
Consumer |
|
16 |
|
|
9 |
|
|
10 |
|
|
13 |
|
|
15 |
Total nonaccrual loans |
|
11,289 |
|
|
12,133 |
|
|
13,724 |
|
|
15,364 |
|
|
18,816 |
Other real estate owned |
|
201 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Total nonperforming assets |
|
11,490 |
|
|
12,133 |
|
|
13,724 |
|
|
15,364 |
|
|
18,816 |
Performing troubled debt
restructurings |
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
334 |
|
|
336 |
|
|
336 |
|
|
335 |
|
|
546 |
Residential real estate |
|
365 |
|
|
426 |
|
|
429 |
|
|
430 |
|
|
432 |
Total performing troubled debt restructurings |
|
699 |
|
|
762 |
|
|
765 |
|
|
765 |
|
|
978 |
Total impaired assets |
$ |
12,189 |
|
$ |
12,895 |
|
$ |
14,489 |
|
$ |
16,129 |
|
$ |
19,794 |
|
|
|
|
|
|
|
|
|
|
Loans 90 days or more past due
and still accruing |
$ |
162 |
|
$ |
162 |
|
$ |
387 |
|
$ |
328 |
|
$ |
269 |
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, 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 |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(Dollars in thousands, except per share data) |
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
Total shareholders'
equity |
$ |
240,091 |
|
|
$ |
233,934 |
|
|
$ |
225,409 |
|
|
$ |
217,187 |
|
|
$ |
215,327 |
|
Less: |
|
|
|
|
|
|
|
|
|
Preferred stock |
|
23,372 |
|
|
|
23,372 |
|
|
|
23,372 |
|
|
|
23,372 |
|
|
|
23,372 |
|
Total common shareholders'
equity |
|
216,719 |
|
|
|
210,562 |
|
|
|
202,037 |
|
|
|
193,815 |
|
|
|
191,955 |
|
Less: |
|
|
|
|
|
|
|
|
|
Goodwill |
|
35,554 |
|
|
|
35,554 |
|
|
|
35,554 |
|
|
|
35,554 |
|
|
|
35,554 |
|
Mortgage servicing rights,
net |
|
5,604 |
|
|
|
5,051 |
|
|
|
4,599 |
|
|
|
4,346 |
|
|
|
3,361 |
|
Other intangible assets,
net |
|
2,528 |
|
|
|
2,695 |
|
|
|
2,862 |
|
|
|
3,028 |
|
|
|
3,196 |
|
Tangible common shareholders'
equity |
$ |
173,033 |
|
|
$ |
167,262 |
|
|
$ |
159,022 |
|
|
$ |
150,887 |
|
|
$ |
149,844 |
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding (in
thousands) |
|
7,734 |
|
|
|
7,640 |
|
|
|
7,629 |
|
|
|
7,630 |
|
|
|
7,634 |
|
Tangible book value per common
share |
$ |
22.37 |
|
|
$ |
21.89 |
|
|
$ |
20.84 |
|
|
$ |
19.78 |
|
|
$ |
19.63 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
2,515,869 |
|
|
$ |
2,543,883 |
|
|
$ |
2,506,523 |
|
|
$ |
2,572,726 |
|
|
$ |
2,442,982 |
|
Less: |
|
|
|
|
|
|
|
|
|
Goodwill |
|
35,554 |
|
|
|
35,554 |
|
|
|
35,554 |
|
|
|
35,554 |
|
|
|
35,554 |
|
Mortgage servicing rights,
net |
|
5,604 |
|
|
|
5,051 |
|
|
|
4,599 |
|
|
|
4,346 |
|
|
|
3,361 |
|
Other intangible assets,
net |
|
2,528 |
|
|
|
2,695 |
|
|
|
2,862 |
|
|
|
3,028 |
|
|
|
3,196 |
|
Tangible assets |
$ |
2,472,183 |
|
|
$ |
2,500,583 |
|
|
$ |
2,463,508 |
|
|
$ |
2,529,798 |
|
|
$ |
2,400,871 |
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity to
tangible assets |
|
7.00 |
% |
|
|
6.69 |
% |
|
|
6.46 |
% |
|
|
5.96 |
% |
|
|
6.24 |
% |
Allowance
for Loan Loss as a Percentage of Total Loans, Excluding PPP
Loans |
|
As of |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(Dollars in thousands, except per share data) |
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
Total loans |
$ |
1,652,771 |
|
|
$ |
1,719,717 |
|
|
$ |
1,775,243 |
|
|
$ |
1,861,691 |
|
|
$ |
1,723,537 |
|
Less: |
|
|
|
|
|
|
|
|
|
PPP loans |
|
76,505 |
|
|
|
147,645 |
|
|
|
259,303 |
|
|
|
405,770 |
|
|
|
290,135 |
|
Total loans, excluding PPP
loans |
$ |
1,576,266 |
|
|
$ |
1,572,072 |
|
|
$ |
1,515,940 |
|
|
$ |
1,455,921 |
|
|
$ |
1,433,402 |
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan loss |
$ |
21,425 |
|
|
$ |
21,731 |
|
|
$ |
23,144 |
|
|
$ |
22,578 |
|
|
$ |
22,297 |
|
Allowance for loan loss as a
percentage of total loans |
|
1.30 |
% |
|
|
1.26 |
% |
|
|
1.30 |
% |
|
|
1.21 |
% |
|
|
1.29 |
% |
Allowance for loan loss as a
percentage of total loans, excluding PPP loans |
|
1.36 |
% |
|
|
1.38 |
% |
|
|
1.53 |
% |
|
|
1.55 |
% |
|
|
1.56 |
% |
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