Southern States Bancshares, Inc. (NASDAQ: SSBK) (“Southern States”
or the “Company”), the holding company for Southern States Bank, an
Alabama state-chartered commercial bank (the “Bank”), today
reported net income of $6.6 million, or $0.73 diluted earnings per
share, for the third quarter of 2023. This compares to net income
of $8.8 million, or $0.98 diluted earnings per share, for the
second quarter of 2023, and net income of $6.7 million, or $0.75
diluted earnings per share, for the third quarter of 2022. The
Company reported core net income of $9.6 million, or $1.06 diluted
core earnings per share, for the third quarter of 2023. This
compares to core net income of $7.1 million, or $0.79 diluted core
earnings per share, for the second quarter of 2023, and core net
income of $6.8 million, or $0.77 diluted core earnings per share,
for the third quarter of 2022 (see “Reconciliation of Non-GAAP
Financial Measures”).
CEO Commentary |
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Mark Chambers, Chief Executive Officer and President of Southern
States, said, “Our business development teams continued to identify
compelling opportunities in the third quarter, driving annualized
sequential loan growth of 13.3% and maintaining the strong momentum
we’ve generated over the past two years as we meet steady loan
demand across our economically dynamic footprint.” |
“Our growth positioned the bank to capitalize on higher rates, with
increased yields on earning assets driving a nearly 7% gain in net
interest income from the second quarter and from a year earlier,
bolstering our core earnings. As we pursue new business, we remain
committed to diligent underwriting and robust credit quality. Our
non-performing loans as a percentage of the overall loan portfolio
totaled just 0.06%, consistent with the prior quarter.” |
“Importantly, we continue to fund our loan growth with a healthy
deposit franchise. Our funding costs did increase during the third
quarter to remain competitive in terms of price amid higher rates
to keep our total deposit levels relatively stable. However, this
was more than offset by our loan growth and gains in yields, and
our net interest margin expanded by 5 basis points in the quarter
as a result.” |
|
During the second quarter of 2023, the Company
received a $5.1 million employee retention credit (“ERC”). The
second quarter of 2023 included the $5.1 million ERC in noninterest
income, and also included $1.2 million in noninterest expense for
professional fees paid by the Company in obtaining the ERC. After
reviewing the revised IRS guidelines pertaining to ERC issued
during the third quarter, the Company determined to return the full
$5.1 million ERC to the IRS and has recorded a payable. The Company
will also receive a refund of all professional fees totaling $1.2
million related to ERC. Accordingly, the third quarter of 2023
reflects a $5.1 million reduction in noninterest income and a $1.2
million reduction in noninterest expense related to the return of
the ERC. This was deemed a change in circumstance between the
second and third quarters of 2023. The following table for the
three months ended June 30, 2023 and the three months ended
September 30, 2023 eliminates the effect of the ERC. There is no
impact on the nine months ended September 30, 2023.
Results
excluding ERC |
|
|
Three Months Ended |
|
Nine Months Ended |
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2023 |
|
|
|
|
|
|
Results of
Operations |
|
|
|
|
|
Interest income |
$ |
35,204 |
|
|
$ |
32,185 |
|
|
$ |
96,088 |
|
Interest expense |
|
14,473 |
|
|
|
12,753 |
|
|
|
36,379 |
|
Net interest income |
|
20,731 |
|
|
|
19,432 |
|
|
|
59,709 |
|
Provision for credit
losses |
|
773 |
|
|
|
1,557 |
|
|
|
3,511 |
|
Net interest income after
provision |
|
19,958 |
|
|
|
17,875 |
|
|
|
56,198 |
|
Noninterest income |
|
2,206 |
|
|
|
1,762 |
|
|
|
5,755 |
|
Noninterest expense |
|
9,812 |
|
|
|
12,189 |
|
|
|
32,159 |
|
Income tax expense |
|
2,843 |
|
|
|
1,572 |
|
|
|
6,738 |
|
Net income |
$ |
9,509 |
|
|
$ |
5,876 |
|
|
$ |
23,056 |
|
|
|
|
|
|
|
Per Share
Data |
|
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Earnings per share: |
|
|
|
|
|
Basic |
$ |
1.07 |
|
|
$ |
0.67 |
|
|
$ |
2.62 |
|
Diluted |
$ |
1.05 |
|
|
$ |
0.66 |
|
|
$ |
2.56 |
|
|
|
|
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|
Performance and
Financial Ratios |
|
|
|
|
|
ROAA |
|
1.65 |
% |
|
|
1.07 |
% |
|
|
1.41 |
% |
ROAE |
|
18.59 |
% |
|
|
12.18 |
% |
|
|
15.85 |
% |
Efficiency ratio |
|
42.76 |
% |
|
|
57.39 |
% |
|
|
49.47 |
% |
|
|
|
|
|
|
Net
Interest Income and Net Interest Margin |
|
Three Months Ended |
|
% Change September 30, 2023vs. |
September 30,2023 |
|
June 30,2023 |
|
September 30,2022 |
|
June 30,2023 |
|
September 30,2022 |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average interest-earning assets |
$ |
2,175,103 |
|
|
$ |
2,091,998 |
|
|
$ |
1,859,104 |
|
|
4.0 |
% |
|
17.0 |
% |
Net interest income |
$ |
20,731 |
|
|
$ |
19,432 |
|
|
$ |
19,435 |
|
|
6.7 |
% |
|
6.7 |
% |
Net interest margin |
|
3.78 |
% |
|
|
3.73 |
% |
|
|
4.15 |
% |
|
5 |
bps |
|
(37 |
) bps |
|
|
|
|
|
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|
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Net interest income for the third quarter of
2023 was $20.7 million, an increase of 6.7% from $19.4 million for
the second quarter of 2023. The increase was primarily driven by
the impact of a higher yield on interest-earning assets due to both
growth and higher interest rates, which more than offset a higher
cost of interest-bearing deposits primarily due to rising interest
rates.
Relative to the third quarter of 2022, net
interest income increased $1.3 million, or 6.7%. The increase was
primarily the result of a sharp improvement in the yield on
interest-earning assets due to both year over year growth and
higher interest rates, which outpaced the accelerated rise in costs
on interest-bearing liabilities due to a rapid rise in interest
rates, coupled with growth in interest-bearing liabilities. A
portion of the growth in interest-bearing deposits is due to
migration from noninterest-bearing into interest-bearing
deposits.
Net interest margin for the third quarter of
2023 was 3.78%, compared to 3.73% for the second quarter of 2023.
The increase was primarily due to an increase in the average
balance and yield on interest-earning assets, which outpaced the
combined effect of higher average balances and cost of
interest-bearing deposits.
Relative to the third quarter of 2022, net
interest margin decreased from 4.15%. The decrease was primarily
due to a rapid increase in interest rates, which accelerated the
cost on interest-bearing liabilities at a faster pace than the
yield received on interest-earning assets. A shift from
noninterest-bearing deposits into interest-bearing deposits also
had a negative impact on net interest margin.
Noninterest Income |
|
Three Months Ended |
|
% Change September 30, 2023vs. |
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|
June 30, 2023 |
|
September 30, 2022 |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit
accounts |
$ |
442 |
|
|
$ |
456 |
|
|
$ |
508 |
|
|
(3.1 |
)% |
|
(13.0 |
)% |
Swap fees |
|
453 |
|
|
|
173 |
|
|
|
11 |
|
|
161.8 |
% |
|
4018.2 |
% |
SBA/USDA fees |
|
74 |
|
|
|
66 |
|
|
|
95 |
|
|
12.1 |
% |
|
(22.1 |
)% |
Mortgage origination fees |
|
158 |
|
|
|
188 |
|
|
|
218 |
|
|
(16.0 |
)% |
|
(27.5 |
)% |
Net loss on securities |
|
(12 |
) |
|
|
(45 |
) |
|
|
(143 |
) |
|
(73.3 |
)% |
|
(91.6 |
)% |
Employee retention credit and
related revenue |
|
(5,100 |
) |
|
|
5,100 |
|
|
|
— |
|
|
N/A |
|
N/A |
Other operating income |
|
1,091 |
|
|
|
924 |
|
|
|
650 |
|
|
18.1 |
% |
|
67.8 |
% |
Total noninterest income |
$ |
(2,894 |
) |
|
$ |
6,862 |
|
|
$ |
1,339 |
|
|
(142.2 |
)% |
|
(316.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income for the third quarter of 2023
was reported as a $2.9 million net expense, compared to noninterest
income of $6.9 million for the second quarter of 2023. The change
in ERC eligibility between the second and third quarters of 2023 is
substantially the reason for the significant variation. This
decrease was partially offset by a $280,000 increase in swap fees
during the third quarter of 2023.
Relative to the third quarter of 2022,
noninterest income decreased 316.1% from $1.3 million. The decrease
was substantially due to the aforementioned return of ERC. This
decrease was partially offset by a $280,000 increase in swap fees
during the third quarter of 2023 and $132,000 in dividend income
realized on equity securities.
Noninterest Expense |
|
Three Months Ended |
|
% Change September 30, 2023vs. |
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|
June 30, 2023 |
|
September 30, 2022 |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits |
$ |
5,752 |
|
|
$ |
7,863 |
|
$ |
6,152 |
|
(26.8 |
)% |
|
(6.5 |
)% |
Equipment and occupancy
expenses |
|
718 |
|
|
|
694 |
|
|
764 |
|
3.5 |
% |
|
(6.0 |
)% |
Data processing fees |
|
650 |
|
|
|
646 |
|
|
599 |
|
0.6 |
% |
|
8.5 |
% |
Regulatory assessments |
|
322 |
|
|
|
180 |
|
|
235 |
|
78.9 |
% |
|
37.0 |
% |
Professional fees related to
ERC |
|
(1,243 |
) |
|
|
1,243 |
|
|
— |
|
N/A |
|
N/A |
Other operating expenses |
|
2,370 |
|
|
|
2,806 |
|
|
2,487 |
|
(15.5 |
)% |
|
(4.7 |
)% |
Total noninterest expenses |
$ |
8,569 |
|
|
$ |
13,432 |
|
$ |
10,237 |
|
(36.2 |
)% |
|
(16.3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense for the third quarter of
2023 was $8.6 million, a decrease of 36.2% from $13.4 million for
the second quarter of 2023. The decrease was substantially
attributable to a decrease in salaries and benefits as a result of
significantly less retirement expenses during the third quarter of
2023, in addition to several open positions. Additionally, the
change in ERC eligibility resulted in a $1.2 million refund of
professional fees related to the ERC. Provision for unfunded loan
commitments decreased $181,000 during the third quarter of
2023.
Relative to the third quarter of 2022,
noninterest expense decreased 16.3% from $10.2 million. The
decrease was substantially due to the aforementioned refund of
professional fees related to the ERC, a decrease in salaries and
benefits as a result of a reduction in employees and a net
reduction in forgery/fraud losses during the third quarter of
2023.
Loans and
Credit Quality |
|
|
Three Months Ended |
|
% Change September 30, 2023vs. |
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|
June 30, 2023 |
|
September 30, 2022 |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans |
|
1,779,846 |
|
|
|
1,722,278 |
|
|
|
1,530,129 |
|
|
3.3 |
% |
|
16.3 |
% |
Unearned income |
|
(5,698 |
) |
|
|
(5,766 |
) |
|
|
(5,139 |
) |
|
(1.2 |
)% |
|
10.9 |
% |
Loans, net of unearned income
(“Loans”) |
$ |
1,774,148 |
|
|
$ |
1,716,512 |
|
|
$ |
1,524,990 |
|
|
3.4 |
% |
|
16.3 |
% |
Average loans, net of unearned
(“Average loans”) |
$ |
1,740,582 |
|
|
$ |
1,676,816 |
|
|
$ |
1,480,735 |
|
|
3.8 |
% |
|
17.5 |
% |
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
(“NPL”) |
$ |
1,082 |
|
|
$ |
1,010 |
|
|
$ |
3,950 |
|
|
7.1 |
% |
|
(72.6 |
)% |
Provision for credit
losses |
$ |
773 |
|
|
$ |
1,557 |
|
|
$ |
1,663 |
|
|
(50.4 |
)% |
|
(53.5 |
)% |
Allowance for credit losses
(“ACL”) |
$ |
22,181 |
|
|
$ |
21,385 |
|
|
$ |
18,423 |
|
|
3.7 |
% |
|
20.4 |
% |
Net charge-offs
(recoveries) |
$ |
(23 |
) |
|
$ |
27 |
|
|
$ |
47 |
|
|
(185.2 |
)% |
|
(148.9 |
)% |
NPL to gross loans |
|
0.06 |
% |
|
|
0.06 |
% |
|
|
0.26 |
% |
|
|
|
|
Net charge-offs (recoveries)
to average loans(1) |
(0.01 |
)% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
|
|
ACL to loans |
|
1.25 |
% |
|
|
1.25 |
% |
|
|
1.21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Ratio is
annualized. |
|
|
|
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|
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|
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|
Loans, net of unearned income, were $1.8 billion
at September 30, 2023, up $57.6 million from June 30,
2023 and up $249.2 million from September 30, 2022. The
linked-quarter and year-over-year increases in loans were primarily
attributable to new business growth across our footprint.
Nonperforming loans totaled $1.1 million, or
0.06% of gross loans, at September 30, 2023, compared with
$1.0 million, or 0.06% of gross loans, at June 30, 2023, and
$4.0 million, or 0.26% of gross loans, at September 30, 2022.
The $72,000 net increase in nonperforming loans in the third
quarter of 2023 was primarily attributable to a commercial real
estate loan that was added to nonaccrual status and partially
offset by a commercial real estate loan that moved back to accruing
status. The $2.9 million net decrease in nonperforming loans from
September 30, 2022, was primarily attributable to a
significant commercial real estate loan being moved back to
accruing status, two loans that were paid-off and one loan that was
charged-off.
The Company recorded a provision for credit
losses of $773,000 for the third quarter of 2023, compared to $1.6
million for the second quarter of 2023. Provision in the second
quarter of 2023 was based on increases for qualitative economic
factors as well as loan growth, whereas provision in the third
quarter of 2023 was based solely on loan growth. The Company
expects future provisions to be based on loan growth, unless credit
issues arise.
Net recoveries for the third quarter of 2023
were $23,000, or (0.01)% of average loans on an annualized basis,
compared to net charge-offs of $27,000, or 0.01% of average loans
on an annualized basis, for the second quarter of 2023, and net
charge-offs of $47,000, or 0.01% of average loans on an annualized
basis, for the third quarter of 2022.
The Company’s allowance for credit losses was
1.25% of total loans and 2050.00% of nonperforming loans at
September 30, 2023, compared with 1.25% of total loans and
2117.33% of nonperforming loans at June 30, 2023. Allowance
for credit losses on unfunded commitments was $1.5 million at
September 30, 2023.
Deposits |
|
Three Months Ended |
|
% Change September 30, 2023vs. |
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|
June 30, 2023 |
|
September 30, 2022 |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits |
$ |
418,125 |
|
|
$ |
449,433 |
|
|
$ |
499,613 |
|
|
(7.0 |
)% |
|
(16.3 |
)% |
Interest-bearing deposits |
|
1,498,276 |
|
|
|
1,474,478 |
|
|
|
1,267,479 |
|
|
1.6 |
% |
|
18.2 |
% |
Total deposits |
$ |
1,916,401 |
|
|
$ |
1,923,911 |
|
|
$ |
1,767,092 |
|
|
(0.4 |
)% |
|
8.4 |
% |
|
|
|
|
|
|
|
|
|
|
Uninsured deposits |
$ |
568,323 |
|
|
$ |
553,084 |
|
|
$ |
707,371 |
|
|
2.8 |
% |
|
(19.7 |
)% |
Uninsured deposits to total
deposits |
|
29.66 |
% |
|
|
28.75 |
% |
|
|
40.03 |
% |
|
|
|
|
Noninterest deposits to total
deposits |
|
21.82 |
% |
|
|
23.36 |
% |
|
|
28.27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits were $1.9 billion at
September 30, 2023, down slightly from June 30, 2023 and
up from $1.8 billion at September 30, 2022. The $7.5 million
decrease in total deposits in the third quarter was primarily
related to a reduction in brokered deposits of $25.9 million,
partially offset by an $18.4 million increase in customer deposits.
Total brokered deposits were $168.3 million at September 30,
2023.
Capital |
|
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
Company |
|
Bank |
|
Company |
|
Bank |
|
Company |
|
Bank |
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital ratio to average assets |
8.70 |
% |
|
11.71 |
% |
|
8.70 |
% |
|
11.82 |
% |
|
8.44 |
% |
|
11.49 |
% |
Risk-based capital
ratios: |
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 (“CET1”) capital ratio |
9.32 |
% |
|
12.55 |
% |
|
9.11 |
% |
|
12.37 |
% |
|
8.73 |
% |
|
11.89 |
% |
Tier 1 capital ratio |
9.32 |
% |
|
12.55 |
% |
|
9.11 |
% |
|
12.37 |
% |
|
8.73 |
% |
|
11.89 |
% |
Total capital ratio |
14.60 |
% |
|
13.67 |
% |
|
14.42 |
% |
|
13.47 |
% |
|
12.26 |
% |
|
12.87 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
As of September 30, 2023, total
stockholders’ equity was $201.9 million, up from $197.3 million at
June 30, 2023. The increase of $4.7 million was substantially
due to earnings growth, partially offset by an increase in
accumulated other comprehensive loss resulting from changes in the
value of the available for sale securities portfolio.
About Southern States Bancshares,
Inc.Headquartered in Anniston, Alabama, Southern States
Bancshares, Inc. is a bank holding company that operates primarily
through its wholly-owned subsidiary, Southern States Bank. The Bank
is a full service community banking institution, which offers an
array of deposit, loan and other banking-related products and
services to businesses and individuals in its communities. The Bank
operates 13 branches in Alabama and Georgia and two loan production
offices in Atlanta.
Forward-Looking StatementsThis
press release contains forward-looking statements within the
meaning of the federal securities laws, which reflect our current
expectations and beliefs with respect to, among other things,
future events and our financial performance. These forward-looking
statements are not historical facts, and are based on current
expectations, estimates and projections about our industry,
management’s beliefs and certain assumptions made by management,
many of which, by their nature, are inherently uncertain and beyond
our control. This may be especially true given recent events and
trends in the banking industry and the inflationary environment.
Although we believe that the expectations reflected in such
forward-looking statements are reasonable as of the dates made, we
cannot give any assurance that such expectations will prove correct
and actual results may prove to be materially different from the
results expressed or implied by the forward-looking statements.
Important factors that could cause actual results to differ
materially from those in the forward-looking statements are set
forth in the Company’s Annual Report on Form 10-K for the year
ended December 31, 2022 under the section entitled “Cautionary Note
Regarding Forward-Looking Statements” and “Risk Factors”.
Accordingly, we caution you that any such forward-looking
statements are not guarantees of future performance and are subject
to risks, assumptions and uncertainties that are difficult to
predict.
These statements are often, but not always, made
through the use of words or phrases such as “may,” “can,” “should,”
“could,” “to be,” “predict,” “potential,” “believe,” “will likely
result,” “expect,” “continue,” “will,” “likely,” “anticipate,”
“seek,” “estimate,” “intend,” “plan,” “target,” “project,” “would”
and “outlook,” or the negative version of those words or other
similar words or phrases of a future or forward-looking nature.
Forward-looking statements appear in a number of places in this
press release and may include statements about business strategy
and prospects for growth, operations, ability to pay dividends,
competition, regulation and general economic conditions.
Contact Information |
|
|
|
Lynn
Joyce |
Kevin Dobbs |
(205) 820-8065 |
(310) 622-8245 |
ljoyce@ssbank.bank |
ssbankir@finprofiles.com |
|
|
SELECT FINANCIAL DATA |
(Dollars in thousands, except share and per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
|
|
|
|
|
|
|
|
|
Results of
Operations |
|
|
|
|
|
|
|
|
|
Interest income |
$ |
35,204 |
|
|
$ |
32,185 |
|
|
$ |
22,520 |
|
|
$ |
96,088 |
|
|
$ |
56,144 |
|
Interest expense |
|
14,473 |
|
|
|
12,753 |
|
|
|
3,085 |
|
|
|
36,379 |
|
|
|
5,690 |
|
Net interest income |
|
20,731 |
|
|
|
19,432 |
|
|
|
19,435 |
|
|
|
59,709 |
|
|
|
50,454 |
|
Provision for credit
losses |
|
773 |
|
|
|
1,557 |
|
|
|
1,663 |
|
|
|
3,511 |
|
|
|
3,667 |
|
Net interest income after
provision |
|
19,958 |
|
|
|
17,875 |
|
|
|
17,772 |
|
|
|
56,198 |
|
|
|
46,787 |
|
Noninterest income |
|
(2,894 |
) |
|
|
6,862 |
|
|
|
1,339 |
|
|
|
5,755 |
|
|
|
4,074 |
|
Noninterest expense |
|
8,569 |
|
|
|
13,432 |
|
|
|
10,237 |
|
|
|
32,159 |
|
|
|
29,178 |
|
Income tax expense |
|
1,866 |
|
|
|
2,549 |
|
|
|
2,174 |
|
|
|
6,738 |
|
|
|
5,204 |
|
Net income |
$ |
6,629 |
|
|
$ |
8,756 |
|
|
$ |
6,700 |
|
|
$ |
23,056 |
|
|
$ |
16,479 |
|
Core net income(1) |
$ |
9,563 |
|
|
$ |
7,058 |
|
|
$ |
6,806 |
|
|
$ |
23,901 |
|
|
$ |
16,883 |
|
|
|
|
|
|
|
|
|
|
|
Share and Per Share
Data |
|
|
|
|
|
|
|
|
|
Shares issued and
outstanding |
|
8,834,168 |
|
|
|
8,738,814 |
|
|
|
8,705,920 |
|
|
|
8,834,168 |
|
|
|
8,705,920 |
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
8,846,018 |
|
|
|
8,763,635 |
|
|
|
8,693,745 |
|
|
|
8,791,007 |
|
|
|
8,797,720 |
|
Diluted |
|
9,040,687 |
|
|
|
8,950,847 |
|
|
|
8,871,116 |
|
|
|
9,016,603 |
|
|
|
8,952,600 |
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.75 |
|
|
$ |
1.00 |
|
|
$ |
0.77 |
|
|
$ |
2.62 |
|
|
$ |
1.87 |
|
Diluted |
$ |
0.73 |
|
|
$ |
0.98 |
|
|
$ |
0.75 |
|
|
$ |
2.56 |
|
|
$ |
1.84 |
|
Core - diluted(1) |
$ |
1.06 |
|
|
$ |
0.79 |
|
|
$ |
0.77 |
|
|
$ |
2.65 |
|
|
$ |
1.89 |
|
Book value per share |
$ |
22.86 |
|
|
$ |
22.57 |
|
|
$ |
19.56 |
|
|
$ |
22.86 |
|
|
$ |
19.56 |
|
Tangible book value per
share(1) |
$ |
20.84 |
|
|
$ |
20.52 |
|
|
$ |
17.48 |
|
|
$ |
20.84 |
|
|
$ |
17.48 |
|
Cash dividends per common
share |
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.27 |
|
|
$ |
0.27 |
|
|
|
|
|
|
|
|
|
|
|
Performance and
Financial Ratios |
|
|
|
|
|
|
|
|
|
ROAA |
|
1.15 |
% |
|
|
1.60 |
% |
|
|
1.35 |
% |
|
|
1.41 |
% |
|
|
1.19 |
% |
ROAE |
|
12.96 |
% |
|
|
18.15 |
% |
|
|
15.42 |
% |
|
|
15.85 |
% |
|
|
12.72 |
% |
Core ROAA(1) |
|
1.66 |
% |
|
|
1.29 |
% |
|
|
1.37 |
% |
|
|
1.47 |
% |
|
|
1.21 |
% |
ROATCE(1) |
|
14.21 |
% |
|
|
20.01 |
% |
|
|
17.24 |
% |
|
|
17.47 |
% |
|
|
14.22 |
% |
Core ROATCE(1) |
|
20.50 |
% |
|
|
16.13 |
% |
|
|
17.51 |
% |
|
|
18.11 |
% |
|
|
14.57 |
% |
NIM |
|
3.78 |
% |
|
|
3.73 |
% |
|
|
4.15 |
% |
|
|
3.85 |
% |
|
|
3.85 |
% |
NIM - FTE(2) |
|
3.79 |
% |
|
|
3.74 |
% |
|
|
4.17 |
% |
|
|
3.87 |
% |
|
|
3.87 |
% |
Net interest spread |
|
2.84 |
% |
|
|
2.86 |
% |
|
|
3.86 |
% |
|
|
3.00 |
% |
|
|
3.64 |
% |
Yield on loans |
|
6.86 |
% |
|
|
6.61 |
% |
|
|
5.37 |
% |
|
|
6.62 |
% |
|
|
4.97 |
% |
Yield on interest-earning
assets |
|
6.42 |
% |
|
|
6.17 |
% |
|
|
4.81 |
% |
|
|
6.20 |
% |
|
|
4.29 |
% |
Cost of interest-bearing
liabilities |
|
3.58 |
% |
|
|
3.31 |
% |
|
|
0.95 |
% |
|
|
3.20 |
% |
|
|
0.65 |
% |
Cost of funds(2) |
|
2.80 |
% |
|
|
2.58 |
% |
|
|
0.69 |
% |
|
|
2.48 |
% |
|
|
0.46 |
% |
Cost of interest-bearing
deposits |
|
3.43 |
% |
|
|
3.12 |
% |
|
|
0.82 |
% |
|
|
3.02 |
% |
|
|
0.52 |
% |
Cost of total deposits |
|
2.63 |
% |
|
|
2.38 |
% |
|
|
0.58 |
% |
|
|
2.29 |
% |
|
|
0.36 |
% |
Noninterest deposits to total
deposits |
|
21.82 |
% |
|
|
23.36 |
% |
|
|
28.27 |
% |
|
|
21.82 |
% |
|
|
28.27 |
% |
Core deposits to total
deposits |
|
86.58 |
% |
|
|
86.18 |
% |
|
|
92.17 |
% |
|
|
86.58 |
% |
|
|
92.17 |
% |
Uninsured deposits to total
deposits |
|
29.66 |
% |
|
|
28.75 |
% |
|
|
40.03 |
% |
|
|
29.66 |
% |
|
|
40.03 |
% |
Total loans to total
deposits |
|
92.58 |
% |
|
|
89.22 |
% |
|
|
86.30 |
% |
|
|
92.58 |
% |
|
|
86.30 |
% |
Efficiency ratio |
|
48.01 |
% |
|
|
51.00 |
% |
|
|
48.94 |
% |
|
|
49.47 |
% |
|
|
52.98 |
% |
Core efficiency ratio(1) |
|
42.79 |
% |
|
|
49.96 |
% |
|
|
48.94 |
% |
|
|
47.06 |
% |
|
|
52.98 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See “Reconciliation of Non-GAAP Financial
Measures” below for reconciliation of non-GAAP financial measures
to their most closely comparable GAAP financial measures.(2)
Includes total interest-bearing liabilities and noninterest
deposits.
|
SELECT FINANCIAL DATA |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
|
|
|
|
|
|
|
|
|
Financial Condition
(ending) |
|
|
|
|
|
|
|
|
|
Total loans |
$ |
1,774,148 |
|
|
$ |
1,716,512 |
|
|
$ |
1,524,990 |
|
|
$ |
1,774,148 |
|
|
$ |
1,524,990 |
|
Total securities |
|
189,496 |
|
|
|
182,717 |
|
|
|
170,375 |
|
|
|
189,496 |
|
|
|
170,375 |
|
Total assets |
|
2,296,527 |
|
|
|
2,277,803 |
|
|
|
2,052,725 |
|
|
|
2,296,527 |
|
|
|
2,052,725 |
|
Total noninterest bearing
deposits |
|
418,125 |
|
|
|
449,433 |
|
|
|
499,613 |
|
|
|
418,125 |
|
|
|
499,613 |
|
Total core deposits(1) |
|
1,659,291 |
|
|
|
1,657,961 |
|
|
|
1,628,660 |
|
|
|
1,659,291 |
|
|
|
1,628,660 |
|
Total deposits |
|
1,916,401 |
|
|
|
1,923,911 |
|
|
|
1,767,092 |
|
|
|
1,916,401 |
|
|
|
1,767,092 |
|
Total borrowings |
|
146,573 |
|
|
|
131,472 |
|
|
|
93,020 |
|
|
|
146,573 |
|
|
|
93,020 |
|
Total liabilities |
|
2,094,603 |
|
|
|
2,080,553 |
|
|
|
1,882,400 |
|
|
|
2,094,603 |
|
|
|
1,882,400 |
|
Total shareholders’
equity |
|
201,924 |
|
|
|
197,250 |
|
|
|
170,325 |
|
|
|
201,924 |
|
|
|
170,325 |
|
|
|
|
|
|
|
|
|
|
|
Financial Condition
(average) |
|
|
|
|
|
|
|
|
|
Total loans |
$ |
1,740,582 |
|
|
$ |
1,676,816 |
|
|
$ |
1,480,735 |
|
|
$ |
1,676,134 |
|
|
$ |
1,373,564 |
|
Total securities |
|
201,830 |
|
|
|
196,731 |
|
|
|
185,670 |
|
|
|
197,005 |
|
|
|
175,381 |
|
Total other interest-earning
assets |
|
232,691 |
|
|
|
218,451 |
|
|
|
192,699 |
|
|
|
199,379 |
|
|
|
202,837 |
|
Total interest-bearing
assets |
|
2,175,103 |
|
|
|
2,091,998 |
|
|
|
1,859,104 |
|
|
|
2,072,518 |
|
|
|
1,751,782 |
|
Total assets |
|
2,282,217 |
|
|
|
2,200,843 |
|
|
|
1,966,556 |
|
|
|
2,180,851 |
|
|
|
1,858,993 |
|
Total noninterest-bearing
deposits |
|
448,616 |
|
|
|
438,987 |
|
|
|
491,917 |
|
|
|
442,149 |
|
|
|
502,951 |
|
Total interest-bearing
deposits |
|
1,472,024 |
|
|
|
1,412,047 |
|
|
|
1,207,797 |
|
|
|
1,395,529 |
|
|
|
1,097,693 |
|
Total deposits |
|
1,920,640 |
|
|
|
1,851,034 |
|
|
|
1,699,714 |
|
|
|
1,837,678 |
|
|
|
1,600,644 |
|
Total borrowings |
|
129,882 |
|
|
|
131,411 |
|
|
|
75,039 |
|
|
|
122,156 |
|
|
|
68,719 |
|
Total interest-bearing
liabilities |
|
1,601,906 |
|
|
|
1,543,458 |
|
|
|
1,282,836 |
|
|
|
1,517,685 |
|
|
|
1,166,412 |
|
Total shareholders’
equity |
|
202,955 |
|
|
|
193,516 |
|
|
|
172,402 |
|
|
|
194,430 |
|
|
|
173,210 |
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality |
|
|
|
|
|
|
|
|
|
Nonperforming loans |
$ |
1,082 |
|
|
$ |
1,010 |
|
|
$ |
3,950 |
|
|
$ |
1,082 |
|
|
$ |
3,950 |
|
Other real estate owned
(“OREO”) |
$ |
2,903 |
|
|
$ |
2,870 |
|
|
$ |
2,930 |
|
|
$ |
2,903 |
|
|
$ |
2,930 |
|
Nonperforming assets
(“NPA”) |
$ |
3,985 |
|
|
$ |
3,880 |
|
|
$ |
6,880 |
|
|
$ |
3,985 |
|
|
$ |
6,880 |
|
Net charge-offs (recovery) to
average loans(2) |
(0.01) % |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.02 |
% |
|
|
0.01 |
% |
Provision for credit losses to
average loans(2) |
|
0.18 |
% |
|
|
0.37 |
% |
|
|
0.45 |
% |
|
|
0.28 |
% |
|
|
0.36 |
% |
ACL to loans |
|
1.25 |
% |
|
|
1.25 |
% |
|
|
1.21 |
% |
|
|
1.25 |
% |
|
|
1.21 |
% |
ACL to gross loans |
|
1.25 |
% |
|
|
1.24 |
% |
|
|
1.20 |
% |
|
|
1.25 |
% |
|
|
1.20 |
% |
ACL to NPL |
|
2050.00 |
% |
|
|
2117.33 |
% |
|
|
466.41 |
% |
|
|
2050.00 |
% |
|
|
466.41 |
% |
NPL to loans |
|
0.06 |
% |
|
|
0.06 |
% |
|
|
0.26 |
% |
|
|
0.06 |
% |
|
|
0.26 |
% |
NPL to gross loans |
|
0.06 |
% |
|
|
0.06 |
% |
|
|
0.26 |
% |
|
|
0.06 |
% |
|
|
0.26 |
% |
NPA to gross loans and
OREO |
|
0.22 |
% |
|
|
0.22 |
% |
|
|
0.45 |
% |
|
|
0.22 |
% |
|
|
0.45 |
% |
NPA to total assets |
|
0.17 |
% |
|
|
0.17 |
% |
|
|
0.34 |
% |
|
|
0.17 |
% |
|
|
0.34 |
% |
|
|
|
|
|
|
|
|
|
|
Regulatory and Other
Capital Ratios |
|
|
|
|
|
|
|
|
|
Total shareholders’ equity to
total assets |
|
8.79 |
% |
|
|
8.66 |
% |
|
|
8.30 |
% |
|
|
8.79 |
% |
|
|
8.30 |
% |
Tangible common equity to
tangible assets(3) |
|
8.08 |
% |
|
|
7.94 |
% |
|
|
7.48 |
% |
|
|
8.08 |
% |
|
|
7.48 |
% |
Tier 1 capital ratio to
average assets |
|
8.70 |
% |
|
|
8.70 |
% |
|
|
8.44 |
% |
|
|
8.70 |
% |
|
|
8.44 |
% |
Risk-based capital
ratios: |
|
|
|
|
|
|
|
|
|
CET1 capital ratio |
|
9.32 |
% |
|
|
9.11 |
% |
|
|
8.73 |
% |
|
|
9.32 |
% |
|
|
8.73 |
% |
Tier 1 capital ratio |
|
9.32 |
% |
|
|
9.11 |
% |
|
|
8.73 |
% |
|
|
9.32 |
% |
|
|
8.73 |
% |
Total capital ratio |
|
14.60 |
% |
|
|
14.42 |
% |
|
|
12.26 |
% |
|
|
14.60 |
% |
|
|
12.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) We define core deposits as total deposits
excluding brokered deposits and time deposits greater than
$250,000.(2) Ratio is annualized.(3) See “Reconciliation of
Non-GAAP Financial Measures” below for reconciliation of non-GAAP
financial measures to their most closely comparable GAAP financial
measures.
|
CONSOLIDATED STATEMENTS
OF FINANCIAL CONDITION |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
September 30, 2023 |
|
June 30, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
(Unaudited) |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Cash and due from banks |
$ |
31,047 |
|
|
$ |
21,299 |
|
|
$ |
15,260 |
|
|
$ |
17,394 |
|
Interest-bearing deposits in
banks |
|
103,646 |
|
|
|
159,818 |
|
|
|
90,198 |
|
|
|
165,637 |
|
Federal funds sold |
|
81,487 |
|
|
|
84,812 |
|
|
|
63,041 |
|
|
|
63,031 |
|
Total cash and cash equivalents |
|
216,180 |
|
|
|
265,929 |
|
|
|
168,499 |
|
|
|
246,062 |
|
|
|
|
|
|
|
|
|
Securities available for sale,
at fair value |
|
169,859 |
|
|
|
163,075 |
|
|
|
155,544 |
|
|
|
150,718 |
|
Securities held to maturity,
at amortized cost |
|
19,637 |
|
|
|
19,642 |
|
|
|
19,652 |
|
|
|
19,657 |
|
Other equity securities, at
fair value |
|
3,654 |
|
|
|
3,762 |
|
|
|
4,444 |
|
|
|
5,694 |
|
Restricted equity securities,
at cost |
|
4,971 |
|
|
|
3,862 |
|
|
|
3,134 |
|
|
|
2,791 |
|
Loans held for sale |
|
1,799 |
|
|
|
1,589 |
|
|
|
1,047 |
|
|
|
1,643 |
|
|
|
|
|
|
|
|
|
Loans, net of unearned
income |
|
1,774,148 |
|
|
|
1,716,512 |
|
|
|
1,587,164 |
|
|
|
1,524,990 |
|
Less allowance for credit
losses |
|
22,181 |
|
|
|
21,385 |
|
|
|
20,156 |
|
|
|
18,423 |
|
Loans, net |
|
1,751,967 |
|
|
|
1,695,127 |
|
|
|
1,567,008 |
|
|
|
1,506,567 |
|
|
|
|
|
|
|
|
|
Premises and equipment,
net |
|
26,694 |
|
|
|
26,957 |
|
|
|
27,345 |
|
|
|
28,585 |
|
Accrued interest
receivable |
|
8,321 |
|
|
|
7,372 |
|
|
|
6,963 |
|
|
|
5,699 |
|
Bank owned life insurance |
|
29,697 |
|
|
|
29,521 |
|
|
|
29,186 |
|
|
|
29,677 |
|
Annuities |
|
15,266 |
|
|
|
15,359 |
|
|
|
15,478 |
|
|
|
15,564 |
|
Foreclosed assets |
|
2,903 |
|
|
|
2,870 |
|
|
|
2,930 |
|
|
|
2,930 |
|
Goodwill |
|
16,862 |
|
|
|
16,862 |
|
|
|
16,862 |
|
|
|
16,862 |
|
Core deposit intangible |
|
981 |
|
|
|
1,062 |
|
|
|
1,226 |
|
|
|
1,302 |
|
Other assets |
|
27,736 |
|
|
|
24,814 |
|
|
|
25,886 |
|
|
|
18,974 |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
2,296,527 |
|
|
$ |
2,277,803 |
|
|
$ |
2,045,204 |
|
|
$ |
2,052,725 |
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
Noninterest-bearing |
$ |
418,125 |
|
|
$ |
449,433 |
|
|
$ |
460,977 |
|
|
$ |
499,613 |
|
Interest-bearing |
|
1,498,276 |
|
|
|
1,474,478 |
|
|
|
1,259,766 |
|
|
|
1,267,479 |
|
Total deposits |
|
1,916,401 |
|
|
|
1,923,911 |
|
|
|
1,720,743 |
|
|
|
1,767,092 |
|
|
|
|
|
|
|
|
|
Other borrowings |
|
4,991 |
|
|
|
(13 |
) |
|
|
(19 |
) |
|
|
19,978 |
|
FHLB advances |
|
55,000 |
|
|
|
45,000 |
|
|
|
31,000 |
|
|
|
26,000 |
|
Subordinated notes |
|
86,582 |
|
|
|
86,485 |
|
|
|
86,314 |
|
|
|
47,042 |
|
Accrued interest payable |
|
1,280 |
|
|
|
1,063 |
|
|
|
584 |
|
|
|
359 |
|
Other liabilities |
|
30,349 |
|
|
|
24,107 |
|
|
|
24,863 |
|
|
|
21,929 |
|
|
|
|
|
|
|
|
|
Total liabilities |
|
2,094,603 |
|
|
|
2,080,553 |
|
|
|
1,863,485 |
|
|
|
1,882,400 |
|
Stockholders’ equity: |
|
|
|
|
|
|
|
Common stock |
|
44,307 |
|
|
|
43,831 |
|
|
|
43,714 |
|
|
|
43,529 |
|
Capital surplus |
|
77,671 |
|
|
|
77,101 |
|
|
|
76,785 |
|
|
|
75,835 |
|
Retained earnings |
|
94,429 |
|
|
|
88,603 |
|
|
|
73,764 |
|
|
|
63,956 |
|
Accumulated other comprehensive loss |
|
(13,126 |
) |
|
|
(10,799 |
) |
|
|
(11,048 |
) |
|
|
(12,403 |
) |
Unvested restricted stock |
|
(580 |
) |
|
|
(709 |
) |
|
|
(477 |
) |
|
|
(592 |
) |
Vested restricted stock units |
|
(777 |
) |
|
|
(777 |
) |
|
|
(1,019 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
Total stockholders’ equity |
|
201,924 |
|
|
|
197,250 |
|
|
|
181,719 |
|
|
|
170,325 |
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
2,296,527 |
|
|
$ |
2,277,803 |
|
|
$ |
2,045,204 |
|
|
$ |
2,052,725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF
INCOME |
(Dollars in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Interest
income: |
|
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
30,084 |
|
|
$ |
27,630 |
|
|
$ |
20,052 |
|
|
$ |
83,049 |
|
$ |
51,083 |
|
Taxable securities |
|
1,796 |
|
|
|
1,641 |
|
|
|
1,010 |
|
|
|
4,819 |
|
|
2,417 |
|
Nontaxable securities |
|
227 |
|
|
|
228 |
|
|
|
323 |
|
|
|
747 |
|
|
931 |
|
Other interest and dividends |
|
3,097 |
|
|
|
2,686 |
|
|
|
1,135 |
|
|
|
7,473 |
|
|
1,713 |
|
Total interest income |
|
35,204 |
|
|
|
32,185 |
|
|
|
22,520 |
|
|
|
96,088 |
|
|
56,144 |
|
|
|
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
Deposits |
|
12,732 |
|
|
|
10,998 |
|
|
|
2,489 |
|
|
|
31,498 |
|
|
4,251 |
|
Other borrowings |
|
1,741 |
|
|
|
1,755 |
|
|
|
596 |
|
|
|
4,881 |
|
|
1,439 |
|
Total interest expense |
|
14,473 |
|
|
|
12,753 |
|
|
|
3,085 |
|
|
|
36,379 |
|
|
5,690 |
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
20,731 |
|
|
|
19,432 |
|
|
|
19,435 |
|
|
|
59,709 |
|
|
50,454 |
|
Provision for credit
losses |
|
773 |
|
|
|
1,557 |
|
|
|
1,663 |
|
|
|
3,511 |
|
|
3,667 |
|
Net interest income after provision for credit
losses |
|
19,958 |
|
|
|
17,875 |
|
|
|
17,772 |
|
|
|
56,198 |
|
|
46,787 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
442 |
|
|
|
456 |
|
|
|
508 |
|
|
|
1,348 |
|
|
1,433 |
|
Swap fees |
|
453 |
|
|
|
173 |
|
|
|
11 |
|
|
|
622 |
|
|
48 |
|
SBA/USDA fees |
|
74 |
|
|
|
66 |
|
|
|
95 |
|
|
|
274 |
|
|
575 |
|
Mortgage origination fees |
|
158 |
|
|
|
188 |
|
|
|
218 |
|
|
|
446 |
|
|
717 |
|
Net (loss) gain on securities |
|
(12 |
) |
|
|
(45 |
) |
|
|
(143 |
) |
|
|
457 |
|
|
(546 |
) |
Employee retention credit and related revenue |
|
(5,100 |
) |
|
|
5,100 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
Other operating income |
|
1,091 |
|
|
|
924 |
|
|
|
650 |
|
|
|
2,608 |
|
|
1,847 |
|
Total noninterest income |
|
(2,894 |
) |
|
|
6,862 |
|
|
|
1,339 |
|
|
|
5,755 |
|
|
4,074 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expenses: |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
5,752 |
|
|
|
7,863 |
|
|
|
6,152 |
|
|
|
19,926 |
|
|
17,859 |
|
Equipment and occupancy expenses |
|
718 |
|
|
|
694 |
|
|
|
764 |
|
|
|
2,095 |
|
|
2,188 |
|
Data processing fees |
|
650 |
|
|
|
646 |
|
|
|
599 |
|
|
|
1,889 |
|
|
1,733 |
|
Regulatory assessments |
|
322 |
|
|
|
180 |
|
|
|
235 |
|
|
|
844 |
|
|
760 |
|
Professional fees related to
ERC |
|
(1,243 |
) |
|
|
1,243 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
Other operating expenses |
|
2,370 |
|
|
|
2,806 |
|
|
|
2,487 |
|
|
|
7,405 |
|
|
6,638 |
|
Total noninterest expenses |
|
8,569 |
|
|
|
13,432 |
|
|
|
10,237 |
|
|
|
32,159 |
|
|
29,178 |
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
8,495 |
|
|
|
11,305 |
|
|
|
8,874 |
|
|
|
29,794 |
|
|
21,683 |
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
1,866 |
|
|
|
2,549 |
|
|
|
2,174 |
|
|
|
6,738 |
|
|
5,204 |
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
6,629 |
|
|
$ |
8,756 |
|
|
$ |
6,700 |
|
|
$ |
23,056 |
|
$ |
16,479 |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share |
$ |
0.75 |
|
|
$ |
1.00 |
|
|
$ |
0.77 |
|
|
$ |
2.62 |
|
$ |
1.87 |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share |
$ |
0.73 |
|
|
$ |
0.98 |
|
|
$ |
0.75 |
|
|
$ |
2.56 |
|
$ |
1.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE SHEET AND NET INTEREST MARGIN |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
AverageBalance |
|
Interest |
|
Yield/Rate |
|
AverageBalance |
|
Interest |
|
Yield/Rate |
|
AverageBalance |
|
Interest |
|
Yield/Rate |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned income(1) |
$ |
1,740,582 |
|
|
$ |
30,084 |
|
6.86 |
% |
|
$ |
1,676,816 |
|
|
$ |
27,630 |
|
6.61 |
% |
|
$ |
1,480,735 |
|
|
$ |
20,052 |
|
5.37 |
% |
Taxable securities |
|
156,364 |
|
|
|
1,796 |
|
4.56 |
% |
|
|
151,107 |
|
|
|
1,641 |
|
4.36 |
% |
|
|
128,932 |
|
|
|
1,010 |
|
3.11 |
% |
Nontaxable securities |
|
45,466 |
|
|
|
227 |
|
1.98 |
% |
|
|
45,624 |
|
|
|
228 |
|
2.00 |
% |
|
|
56,738 |
|
|
|
323 |
|
2.26 |
% |
Other interest-earnings
assets |
|
232,691 |
|
|
|
3,097 |
|
5.28 |
% |
|
|
218,451 |
|
|
|
2,686 |
|
4.93 |
% |
|
|
192,699 |
|
|
|
1,135 |
|
2.34 |
% |
Total interest-earning assets |
$ |
2,175,103 |
|
|
$ |
35,204 |
|
6.42 |
% |
|
$ |
2,091,998 |
|
|
$ |
32,185 |
|
6.17 |
% |
|
$ |
1,859,104 |
|
|
$ |
22,520 |
|
4.81 |
% |
Allowance for credit losses |
|
(21,606 |
) |
|
|
|
|
|
|
(20,154 |
) |
|
|
|
|
|
|
(17,250 |
) |
|
|
|
|
Noninterest-earning assets |
|
128,720 |
|
|
|
|
|
|
|
128,999 |
|
|
|
|
|
|
|
124,702 |
|
|
|
|
|
Total Assets |
$ |
2,282,217 |
|
|
|
|
|
|
$ |
2,200,843 |
|
|
|
|
|
|
$ |
1,966,556 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction accounts |
|
88,668 |
|
|
|
20 |
|
0.09 |
% |
|
|
92,245 |
|
|
|
20 |
|
0.09 |
% |
|
|
114,517 |
|
|
|
26 |
|
0.09 |
% |
Savings and money market accounts |
|
867,066 |
|
|
|
7,767 |
|
3.55 |
% |
|
|
845,742 |
|
|
|
6,872 |
|
3.26 |
% |
|
|
811,349 |
|
|
|
1,644 |
|
0.80 |
% |
Time deposits |
|
516,290 |
|
|
|
4,945 |
|
3.80 |
% |
|
|
474,060 |
|
|
|
4,106 |
|
3.47 |
% |
|
|
281,931 |
|
|
|
819 |
|
1.15 |
% |
FHLB advances |
|
43,261 |
|
|
|
514 |
|
4.72 |
% |
|
|
45,000 |
|
|
|
529 |
|
4.72 |
% |
|
|
27,380 |
|
|
|
102 |
|
1.47 |
% |
Other borrowings |
|
86,621 |
|
|
|
1,227 |
|
5.62 |
% |
|
|
86,411 |
|
|
|
1,226 |
|
5.69 |
% |
|
|
47,659 |
|
|
|
494 |
|
4.12 |
% |
Total interest-bearing liabilities |
$ |
1,601,906 |
|
|
$ |
14,473 |
|
3.58 |
% |
|
$ |
1,543,458 |
|
|
$ |
12,753 |
|
3.31 |
% |
|
$ |
1,282,836 |
|
|
$ |
3,085 |
|
0.95 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
448,616 |
|
|
|
|
|
|
$ |
438,987 |
|
|
|
|
|
|
$ |
491,917 |
|
|
|
|
|
Other liabilities |
|
28,740 |
|
|
|
|
|
|
|
24,882 |
|
|
|
|
|
|
|
19,401 |
|
|
|
|
|
Total noninterest-bearing liabilities |
|
477,356 |
|
|
|
|
|
|
|
463,869 |
|
|
|
|
|
|
|
511,318 |
|
|
|
|
|
Stockholders’ Equity |
|
202,955 |
|
|
|
|
|
|
|
193,516 |
|
|
|
|
|
|
|
172,402 |
|
|
|
|
|
Total Liabilities and Stockholders’ Equity |
$ |
2,282,217 |
|
|
|
|
|
|
$ |
2,200,843 |
|
|
|
|
|
|
$ |
1,966,556 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$ |
20,731 |
|
|
|
|
|
$ |
19,432 |
|
|
|
|
|
$ |
19,435 |
|
|
Net interest spread(2) |
|
|
|
|
2.84 |
% |
|
|
|
|
|
2.86 |
% |
|
|
|
|
|
3.86 |
% |
Net interest margin(3) |
|
|
|
|
3.78 |
% |
|
|
|
|
|
3.73 |
% |
|
|
|
|
|
4.15 |
% |
Net interest margin -
FTE(4)(5) |
|
|
|
|
3.79 |
% |
|
|
|
|
|
3.74 |
% |
|
|
|
|
|
4.17 |
% |
Cost of funds(6) |
|
|
|
|
2.80 |
% |
|
|
|
|
|
2.58 |
% |
|
|
|
|
|
0.69 |
% |
Cost of interest-bearing
deposits |
|
|
|
|
3.43 |
% |
|
|
|
|
|
3.12 |
% |
|
|
|
|
|
0.82 |
% |
Cost of total deposits |
|
|
|
|
2.63 |
% |
|
|
|
|
|
2.38 |
% |
|
|
|
|
|
0.58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes nonaccrual
loans.(2) Net interest spread is the difference
between interest rates earned on interest earning assets and
interest rates paid on interest-bearing
liabilities.(3) Net interest margin is a ratio of
net interest income to average interest earning assets for the same
period.(4) Net interest margin - FTE is a ratio of
fully-taxable equivalent net interest income to average interest
earning assets for the same period. It assumes a 24.0% tax
rate.(5) Refer to “Reconciliation of Non-GAAP
Financial Measures”.(6) Includes total
interest-bearing liabilities and noninterest deposits.
|
AVERAGE BALANCE SHEET AND NET INTEREST MARGIN |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
September 30, 2023 |
|
September 30, 2022 |
AverageBalance |
|
Interest |
|
Yield/Rate |
|
AverageBalance |
|
Interest |
|
Yield/Rate |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned income(1) |
$ |
1,676,134 |
|
|
$ |
83,049 |
|
6.62 |
% |
|
$ |
1,373,564 |
|
|
$ |
51,083 |
|
4.97 |
% |
Taxable securities |
|
149,058 |
|
|
|
4,819 |
|
4.32 |
% |
|
|
119,224 |
|
|
|
2,417 |
|
2.71 |
% |
Nontaxable securities |
|
47,947 |
|
|
|
747 |
|
2.08 |
% |
|
|
56,157 |
|
|
|
931 |
|
2.22 |
% |
Other interest-earnings
assets |
|
199,379 |
|
|
|
7,473 |
|
5.01 |
% |
|
|
202,837 |
|
|
|
1,713 |
|
1.13 |
% |
Total interest-earning assets |
$ |
2,072,518 |
|
|
$ |
96,088 |
|
6.20 |
% |
|
$ |
1,751,782 |
|
|
$ |
56,144 |
|
4.29 |
% |
Allowance for credit losses |
|
(20,750 |
) |
|
|
|
|
|
|
(16,044 |
) |
|
|
|
|
Noninterest-earning assets |
|
129,083 |
|
|
|
|
|
|
|
123,255 |
|
|
|
|
|
Total Assets |
$ |
2,180,851 |
|
|
|
|
|
|
$ |
1,858,993 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction accounts |
|
91,602 |
|
|
|
59 |
|
0.09 |
% |
|
|
113,427 |
|
|
|
78 |
|
0.09 |
% |
Savings and money market accounts |
|
839,827 |
|
|
|
19,679 |
|
3.13 |
% |
|
|
741,397 |
|
|
|
2,862 |
|
0.52 |
% |
Time deposits |
|
464,100 |
|
|
|
11,760 |
|
3.39 |
% |
|
|
242,869 |
|
|
|
1,311 |
|
0.72 |
% |
FHLB advances |
|
35,703 |
|
|
|
1,202 |
|
4.50 |
% |
|
|
26,115 |
|
|
|
144 |
|
0.74 |
% |
Other borrowings |
|
86,453 |
|
|
|
3,679 |
|
5.69 |
% |
|
|
42,604 |
|
|
|
1,295 |
|
4.06 |
% |
Total interest-bearing liabilities |
$ |
1,517,685 |
|
|
$ |
36,379 |
|
3.20 |
% |
|
$ |
1,166,412 |
|
|
$ |
5,690 |
|
0.65 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
442,149 |
|
|
|
|
|
|
$ |
502,951 |
|
|
|
|
|
Other liabilities |
|
26,587 |
|
|
|
|
|
|
|
16,420 |
|
|
|
|
|
Total noninterest-bearing liabilities |
$ |
468,736 |
|
|
|
|
|
|
$ |
519,371 |
|
|
|
|
|
Stockholders’ Equity |
|
194,430 |
|
|
|
|
|
|
|
173,210 |
|
|
|
|
|
Total Liabilities and Stockholders’ Equity |
$ |
2,180,851 |
|
|
|
|
|
|
$ |
1,858,993 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$ |
59,709 |
|
|
|
|
|
$ |
50,454 |
|
|
Net interest spread(2) |
|
|
|
|
3.00 |
% |
|
|
|
|
|
3.64 |
% |
Net interest margin(3) |
|
|
|
|
3.85 |
% |
|
|
|
|
|
3.85 |
% |
Net interest margin -
FTE(4)(5) |
|
|
|
|
3.87 |
% |
|
|
|
|
|
3.87 |
% |
Cost of funds(6) |
|
|
|
|
2.48 |
% |
|
|
|
|
|
0.46 |
% |
Cost of interest-bearing
deposits |
|
|
|
|
3.02 |
% |
|
|
|
|
|
0.52 |
% |
Cost of total deposits |
|
|
|
|
2.29 |
% |
|
|
|
|
|
0.36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes nonaccrual
loans.(2) Net interest spread is the difference
between interest rates earned on interest earning assets and
interest rates paid on interest-bearing
liabilities.(3) Net interest margin is a ratio of
net interest income to average interest earning assets for the same
period.(4) Net interest margin - FTE is a ratio of
fully-taxable equivalent net interest income to average interest
earning assets for the same period. It assumes a 24.0% tax
rate.(5) Refer to “Reconciliation of Non-GAAP
Financial Measures”.(6) Includes total
interest-bearing liabilities and noninterest deposits.
|
LOAN COMPOSITION |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2023 |
|
June 30, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
Amount |
|
% of gross |
|
Amount |
|
% of gross |
|
Amount |
|
% of gross |
|
Amount |
|
% of gross |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate mortgages: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and development |
$ |
229,188 |
|
|
12.9 |
% |
|
$ |
228,236 |
|
|
13.3 |
% |
|
$ |
255,736 |
|
|
16.1 |
% |
|
$ |
222,159 |
|
|
14.5 |
% |
Residential |
|
224,499 |
|
|
12.6 |
% |
|
|
214,897 |
|
|
12.5 |
% |
|
|
167,891 |
|
|
10.5 |
% |
|
|
164,296 |
|
|
10.7 |
% |
Commercial |
|
1,049,545 |
|
|
59.0 |
% |
|
|
1,011,815 |
|
|
58.7 |
% |
|
|
904,872 |
|
|
56.8 |
% |
|
|
889,942 |
|
|
58.2 |
% |
Commercial and industrial |
|
268,283 |
|
|
15.0 |
% |
|
|
259,195 |
|
|
15.0 |
% |
|
|
256,553 |
|
|
16.1 |
% |
|
|
243,577 |
|
|
15.9 |
% |
Consumer and other |
|
8,331 |
|
|
0.5 |
% |
|
|
8,135 |
|
|
0.5 |
% |
|
|
7,655 |
|
|
0.5 |
% |
|
|
10,155 |
|
|
0.7 |
% |
Gross loans |
|
1,779,846 |
|
|
100.0 |
% |
|
|
1,722,278 |
|
|
100.0 |
% |
|
|
1,592,707 |
|
|
100.0 |
% |
|
|
1,530,129 |
|
|
100.0 |
% |
Unearned income |
|
(5,698 |
) |
|
|
|
|
(5,766 |
) |
|
|
|
|
(5,543 |
) |
|
|
|
|
(5,139 |
) |
|
|
Loans, net of unearned income |
|
1,774,148 |
|
|
|
|
|
1,716,512 |
|
|
|
|
|
1,587,164 |
|
|
|
|
|
1,524,990 |
|
|
|
Allowance for credit
losses |
|
(22,181 |
) |
|
|
|
|
(21,385 |
) |
|
|
|
|
(20,156 |
) |
|
|
|
|
(18,423 |
) |
|
|
Loans, net |
$ |
1,751,967 |
|
|
|
|
$ |
1,695,127 |
|
|
|
|
$ |
1,567,008 |
|
|
|
|
$ |
1,506,567 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT COMPOSITION |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2023 |
|
June 30, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
Amount |
|
% of total |
|
Amount |
|
% of total |
|
Amount |
|
% of total |
|
Amount |
|
% of total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing transaction |
$ |
418,125 |
|
21.8 |
% |
|
$ |
449,433 |
|
23.3 |
% |
|
$ |
460,977 |
|
26.8 |
% |
|
$ |
499,613 |
|
28.3 |
% |
Interest-bearing
transaction |
|
934,383 |
|
48.8 |
% |
|
|
922,835 |
|
48.0 |
% |
|
|
837,127 |
|
48.6 |
% |
|
|
855,350 |
|
48.4 |
% |
Savings |
|
38,518 |
|
2.0 |
% |
|
|
41,574 |
|
2.2 |
% |
|
|
49,235 |
|
2.9 |
% |
|
|
78,687 |
|
4.5 |
% |
Time deposits, $250,000 and
under |
|
436,613 |
|
22.8 |
% |
|
|
438,228 |
|
22.8 |
% |
|
|
307,145 |
|
17.8 |
% |
|
|
266,491 |
|
15.0 |
% |
Time deposits, over
$250,000 |
|
88,762 |
|
4.6 |
% |
|
|
71,841 |
|
3.7 |
% |
|
|
66,259 |
|
3.9 |
% |
|
|
66,951 |
|
3.8 |
% |
Total deposits |
$ |
1,916,401 |
|
100.0 |
% |
|
$ |
1,923,911 |
|
100.0 |
% |
|
$ |
1,720,743 |
|
100.0 |
% |
|
$ |
1,767,092 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Assets |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
September 30, 2023 |
|
June 30, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
$ |
1,082 |
|
|
$ |
1,010 |
|
|
$ |
2,245 |
|
|
$ |
3,950 |
|
Past due loans 90 days or more
and still accruing interest |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total nonperforming loans |
|
1,082 |
|
|
|
1,010 |
|
|
|
2,245 |
|
|
|
3,950 |
|
OREO |
|
2,903 |
|
|
|
2,870 |
|
|
|
2,930 |
|
|
|
2,930 |
|
Total nonperforming assets |
$ |
3,985 |
|
|
$ |
3,880 |
|
|
$ |
5,175 |
|
|
$ |
6,880 |
|
|
|
|
|
|
|
|
|
Troubled debt restructured
loans – nonaccrual(1) |
|
970 |
|
|
|
724 |
|
|
|
832 |
|
|
|
1,011 |
|
Troubled debt restructured
loans – accruing |
|
1,052 |
|
|
|
1,328 |
|
|
|
1,292 |
|
|
|
1,307 |
|
Total troubled debt restructured loans |
$ |
2,022 |
|
|
$ |
2,052 |
|
|
$ |
2,124 |
|
|
$ |
2,318 |
|
|
|
|
|
|
|
|
|
Allowance for credit
losses |
$ |
22,181 |
|
|
$ |
21,385 |
|
|
$ |
20,156 |
|
|
$ |
18,423 |
|
Loans, net of unearned income
at the end of the period |
$ |
1,774,148 |
|
|
$ |
1,716,512 |
|
|
$ |
1,587,164 |
|
|
$ |
1,524,990 |
|
Gross loans outstanding at the
end of period |
$ |
1,779,846 |
|
|
$ |
1,722,278 |
|
|
$ |
1,592,707 |
|
|
$ |
1,530,129 |
|
Total assets |
$ |
2,296,527 |
|
|
$ |
2,277,803 |
|
|
$ |
2,045,204 |
|
|
$ |
2,052,725 |
|
Allowance for credit losses to
nonperforming loans |
|
2050.00 |
% |
|
|
2117.33 |
% |
|
|
897.82 |
% |
|
|
466.41 |
% |
Nonperforming loans to loans,
net of unearned income |
|
0.06 |
% |
|
|
0.06 |
% |
|
|
0.14 |
% |
|
|
0.26 |
% |
Nonperforming loans to gross
loans |
|
0.06 |
% |
|
|
0.06 |
% |
|
|
0.14 |
% |
|
|
0.26 |
% |
Nonperforming assets to gross
loans and OREO |
|
0.22 |
% |
|
|
0.22 |
% |
|
|
0.32 |
% |
|
|
0.45 |
% |
Nonperforming assets to total
assets |
|
0.17 |
% |
|
|
0.17 |
% |
|
|
0.25 |
% |
|
|
0.34 |
% |
|
|
|
|
|
|
|
|
Nonaccrual loans by
category: |
|
|
|
|
|
|
|
Real estate mortgages: |
|
|
|
|
|
|
|
Construction & Development |
$ |
— |
|
|
$ |
33 |
|
|
$ |
67 |
|
|
$ |
70 |
|
Residential Mortgages |
|
289 |
|
|
|
297 |
|
|
|
565 |
|
|
|
550 |
|
Commercial Real Estate Mortgages |
|
785 |
|
|
|
671 |
|
|
|
1,278 |
|
|
|
2,888 |
|
Commercial &
Industrial |
|
8 |
|
|
|
9 |
|
|
|
312 |
|
|
|
434 |
|
Consumer and other |
|
— |
|
|
|
— |
|
|
|
23 |
|
|
|
8 |
|
Total |
$ |
1,082 |
|
|
$ |
1,010 |
|
|
$ |
2,245 |
|
|
$ |
3,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Troubled debt restructured loans are
excluded from nonperforming loans unless they otherwise meet the
definition of nonaccrual loans or are more than 90 days past
due.
|
Allowance for Credit Losses |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30,2022 |
|
|
|
|
|
|
|
|
|
Average loans, net of unearned income |
$ |
1,740,582 |
|
|
$ |
1,676,816 |
|
|
$ |
1,480,735 |
|
|
$ |
1,676,134 |
|
|
$ |
1,373,564 |
|
Loans, net of unearned
income |
$ |
1,774,148 |
|
|
$ |
1,716,512 |
|
|
$ |
1,524,990 |
|
|
$ |
1,774,148 |
|
|
$ |
1,524,990 |
|
Gross loans |
$ |
1,779,846 |
|
|
$ |
1,722,278 |
|
|
$ |
1,530,129 |
|
|
$ |
1,779,846 |
|
|
$ |
1,530,129 |
|
Allowance for credit losses at
beginning of the period |
$ |
21,385 |
|
|
$ |
19,855 |
|
|
$ |
16,807 |
|
|
$ |
20,156 |
|
|
$ |
14,844 |
|
Impact of adoption of ASC
326 |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(1,285 |
) |
|
$ |
— |
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
Construction and development |
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
66 |
|
Residential |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7 |
|
Commercial |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial and industrial |
|
— |
|
|
|
44 |
|
|
|
269 |
|
|
|
262 |
|
|
|
269 |
|
Consumer and other |
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
6 |
|
|
|
8 |
|
Total charge-offs |
|
3 |
|
|
|
44 |
|
|
|
270 |
|
|
|
271 |
|
|
|
350 |
|
Recoveries: |
|
|
|
|
|
|
|
|
|
Construction and development |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Residential |
|
10 |
|
|
|
17 |
|
|
|
11 |
|
|
|
38 |
|
|
|
46 |
|
Commercial |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial and industrial |
|
— |
|
|
|
— |
|
|
|
204 |
|
|
|
14 |
|
|
|
204 |
|
Consumer and other |
|
16 |
|
|
|
— |
|
|
|
8 |
|
|
|
18 |
|
|
|
12 |
|
Total recoveries |
|
26 |
|
|
|
17 |
|
|
|
223 |
|
|
|
70 |
|
|
|
262 |
|
Net charge-offs (recoveries) |
$ |
(23 |
) |
|
$ |
27 |
|
|
$ |
47 |
|
|
$ |
201 |
|
|
$ |
88 |
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses |
$ |
773 |
|
|
$ |
1,557 |
|
|
$ |
1,663 |
|
|
$ |
3,511 |
|
|
$ |
3,667 |
|
Balance at end of the
period |
$ |
22,181 |
|
|
$ |
21,385 |
|
|
$ |
18,423 |
|
|
$ |
22,181 |
|
|
$ |
18,423 |
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses on
unfunded commitments at beginning of the period |
$ |
1,495 |
|
|
$ |
1,285 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Impact of adoption of ASC
326 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,285 |
|
|
|
— |
|
Provision for credit losses on
unfunded commitments |
|
29 |
|
|
|
210 |
|
|
|
— |
|
|
|
239 |
|
|
|
— |
|
Balance at the end of the
period |
$ |
1,524 |
|
|
$ |
1,495 |
|
|
$ |
— |
|
|
$ |
1,524 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
Allowance to loans, net of
unearned income |
|
1.25 |
% |
|
|
1.25 |
% |
|
|
1.21 |
% |
|
|
1.25 |
% |
|
|
1.21 |
% |
Allowance to gross loans |
|
1.25 |
% |
|
|
1.24 |
% |
|
|
1.20 |
% |
|
|
1.25 |
% |
|
|
1.20 |
% |
Net charge-offs (recoveries)
to average loans, net of unearned income(1) |
(0.01 |
)% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.02 |
% |
|
|
0.01 |
% |
Provision for credit losses to
average loans, net of unearned income(1) |
|
0.18 |
% |
|
|
0.37 |
% |
|
|
0.45 |
% |
|
|
0.28 |
% |
|
|
0.36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Ratio is annualized.
Reconciliation of Non-GAAP Financial
Measures
In addition to reporting GAAP results, the
Company reports non-GAAP financial measures in this earnings
release and other disclosures. Our management believes that these
non-GAAP financial measures and the information they provide are
useful to investors since these measures permit investors to view
our performance using the same tools that our management uses to
evaluate our performance. While we believe that these non-GAAP
financial measures are useful in evaluating our performance, this
information should be considered as supplemental in nature and not
as a substitute for or superior to the related financial
information prepared in accordance with GAAP. Additionally, these
non-GAAP financial measures may differ from similar measures
presented by other companies.
The following table provides a reconciliation of
the non-GAAP financial measures to their most directly comparable
financial measure presented in accordance with GAAP.
Reconciliation of Non-GAAP Financial Measures |
(Dollars in thousands, except share and per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
6,629 |
|
|
$ |
8,756 |
|
|
$ |
6,700 |
|
|
$ |
23,056 |
|
|
$ |
16,479 |
|
Add: One-time retirement
related expenses |
|
— |
|
|
|
1,571 |
|
|
|
— |
|
|
|
1,571 |
|
|
|
— |
|
Add: Professional fees
related to ERC |
|
(1,243 |
) |
|
|
1,243 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Add: Net OREO (losses)
gains |
|
(9 |
) |
|
|
7 |
|
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
Less: Employee retention
related revenue |
|
(5,100 |
) |
|
|
5,100 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less: (Loss) gain on
securities |
|
(12 |
) |
|
|
(45 |
) |
|
|
(143 |
) |
|
|
457 |
|
|
|
(546 |
) |
Less: Tax effect |
|
926 |
|
|
|
(536 |
) |
|
|
37 |
|
|
|
267 |
|
|
|
142 |
|
Core net
income |
$ |
9,563 |
|
|
$ |
7,058 |
|
|
$ |
6,806 |
|
|
$ |
23,901 |
|
|
$ |
16,883 |
|
Average assets |
$ |
2,282,217 |
|
|
$ |
2,200,843 |
|
|
$ |
1,966,556 |
|
|
$ |
2,180,851 |
|
|
$ |
1,858,993 |
|
Core return on average
assets |
|
1.66 |
% |
|
|
1.29 |
% |
|
|
1.37 |
% |
|
|
1.47 |
% |
|
|
1.21 |
% |
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
6,629 |
|
|
$ |
8,756 |
|
|
$ |
6,700 |
|
|
$ |
23,056 |
|
|
$ |
16,479 |
|
Add: One-time retirement
related expenses |
|
— |
|
|
|
1,571 |
|
|
|
— |
|
|
|
1,571 |
|
|
|
— |
|
Add: Professional fees
related to ERC |
|
(1,243 |
) |
|
|
1,243 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Add: Net OREO (losses)
gains |
|
(9 |
) |
|
|
7 |
|
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
Add: Provision |
|
773 |
|
|
|
1,557 |
|
|
|
1,663 |
|
|
|
3,511 |
|
|
|
3,667 |
|
Less: Employee retention
related revenue |
|
(5,100 |
) |
|
|
5,100 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less: (Loss) gain on
securities |
|
(12 |
) |
|
|
(45 |
) |
|
|
(143 |
) |
|
|
457 |
|
|
|
(546 |
) |
Add: Income taxes |
|
1,866 |
|
|
|
2,549 |
|
|
|
2,174 |
|
|
|
6,738 |
|
|
|
5,204 |
|
Pretax pre-provision
core net income |
$ |
13,128 |
|
|
$ |
10,628 |
|
|
$ |
10,680 |
|
|
$ |
34,417 |
|
|
$ |
25,896 |
|
Average assets |
$ |
2,282,217 |
|
|
$ |
2,200,843 |
|
|
$ |
1,966,556 |
|
|
$ |
2,180,851 |
|
|
$ |
1,858,993 |
|
Pretax pre-provision
core return on average assets |
|
2.28 |
% |
|
|
1.94 |
% |
|
|
2.15 |
% |
|
|
2.11 |
% |
|
|
1.86 |
% |
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
20,731 |
|
|
$ |
19,432 |
|
|
$ |
19,435 |
|
|
$ |
59,709 |
|
|
$ |
50,454 |
|
Add: Fully-taxable
equivalent adjustments(1) |
|
70 |
|
|
|
65 |
|
|
|
86 |
|
|
|
213 |
|
|
|
251 |
|
Net interest income -
FTE |
$ |
20,801 |
|
|
$ |
19,497 |
|
|
$ |
19,521 |
|
|
$ |
59,922 |
|
|
$ |
50,705 |
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
3.78 |
% |
|
|
3.73 |
% |
|
|
4.15 |
% |
|
|
3.85 |
% |
|
|
3.85 |
% |
Effect of fully-taxable
equivalent adjustments(1) |
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
Net interest margin -
FTE |
|
3.79 |
% |
|
|
3.74 |
% |
|
|
4.17 |
% |
|
|
3.87 |
% |
|
|
3.87 |
% |
|
|
|
|
|
|
|
|
|
|
Total stockholders’
equity |
$ |
201,924 |
|
|
$ |
197,250 |
|
|
$ |
170,325 |
|
|
$ |
201,924 |
|
|
$ |
170,325 |
|
Less: Intangible
assets |
|
17,843 |
|
|
|
17,924 |
|
|
|
18,164 |
|
|
|
17,843 |
|
|
|
18,164 |
|
Tangible common
equity |
$ |
184,081 |
|
|
$ |
179,326 |
|
|
$ |
152,161 |
|
|
$ |
184,081 |
|
|
$ |
152,161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Assumes a 24.0% tax rate.
|
Reconciliation of Non-GAAP Financial Measures |
(Dollars in thousands, except share and per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
|
|
|
|
|
|
|
|
|
Core net income |
$ |
9,563 |
|
|
$ |
7,058 |
|
|
$ |
6,806 |
|
|
$ |
23,901 |
|
|
$ |
16,883 |
|
Diluted weighted average
shares outstanding |
|
9,040,687 |
|
|
|
8,950,847 |
|
|
|
8,871,116 |
|
|
|
9,016,603 |
|
|
|
8,952,600 |
|
Diluted core earnings
per share |
$ |
1.06 |
|
|
$ |
0.79 |
|
|
$ |
0.77 |
|
|
$ |
2.65 |
|
|
$ |
1.89 |
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding at
year or period end |
|
8,834,168 |
|
|
|
8,738,814 |
|
|
|
8,705,920 |
|
|
|
8,834,168 |
|
|
|
8,705,920 |
|
Tangible book value
per share |
$ |
20.84 |
|
|
$ |
20.52 |
|
|
$ |
17.48 |
|
|
$ |
20.84 |
|
|
$ |
17.48 |
|
|
|
|
|
|
|
|
|
|
|
Total assets at end of
period |
$ |
2,296,527 |
|
|
$ |
2,277,803 |
|
|
$ |
2,052,725 |
|
|
$ |
2,296,527 |
|
|
$ |
2,052,725 |
|
Less: Intangible
assets |
|
17,843 |
|
|
|
17,924 |
|
|
|
18,164 |
|
|
|
17,843 |
|
|
|
18,164 |
|
Adjusted assets at end of
period |
$ |
2,278,684 |
|
|
$ |
2,259,879 |
|
|
$ |
2,034,561 |
|
|
$ |
2,278,684 |
|
|
$ |
2,034,561 |
|
Tangible common equity
to tangible assets |
|
8.08 |
% |
|
|
7.94 |
% |
|
|
7.48 |
% |
|
|
8.08 |
% |
|
|
7.48 |
% |
|
|
|
|
|
|
|
|
|
|
Total average shareholders
equity |
$ |
202,955 |
|
|
$ |
193,516 |
|
|
$ |
172,402 |
|
|
$ |
194,430 |
|
|
$ |
173,210 |
|
Less: Average intangible
assets |
|
17,893 |
|
|
|
17,974 |
|
|
|
18,203 |
|
|
|
17,973 |
|
|
|
18,270 |
|
Average tangible common
equity |
$ |
185,062 |
|
|
$ |
175,542 |
|
|
$ |
154,199 |
|
|
$ |
176,457 |
|
|
$ |
154,940 |
|
Net income to common
shareholders |
$ |
6,629 |
|
|
$ |
8,756 |
|
|
$ |
6,700 |
|
|
$ |
23,056 |
|
|
$ |
16,479 |
|
Return on average
tangible common equity |
|
14.21 |
% |
|
|
20.01 |
% |
|
|
17.24 |
% |
|
|
17.47 |
% |
|
|
14.22 |
% |
Average tangible common
equity |
$ |
185,062 |
|
|
$ |
175,542 |
|
|
$ |
154,199 |
|
|
$ |
176,457 |
|
|
$ |
154,940 |
|
Core net income |
$ |
9,563 |
|
|
$ |
7,058 |
|
|
$ |
6,806 |
|
|
$ |
23,901 |
|
|
$ |
16,883 |
|
Core return on average
tangible common equity |
|
20.50 |
% |
|
|
16.13 |
% |
|
|
17.51 |
% |
|
|
18.11 |
% |
|
|
14.57 |
% |
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
20,731 |
|
|
$ |
19,432 |
|
|
$ |
19,435 |
|
|
$ |
59,709 |
|
|
$ |
50,454 |
|
Add: Noninterest
income |
|
(2,894 |
) |
|
|
6,862 |
|
|
|
1,339 |
|
|
|
5,755 |
|
|
|
4,074 |
|
Less: Employee retention
related revenue |
|
(5,100 |
) |
|
|
5,100 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less: (Loss) gain on
securities |
|
(12 |
) |
|
|
(45 |
) |
|
|
(143 |
) |
|
|
457 |
|
|
|
(546 |
) |
Operating revenue |
$ |
22,949 |
|
|
$ |
21,239 |
|
|
$ |
20,917 |
|
|
$ |
65,007 |
|
|
$ |
55,074 |
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
Total noninterest expense |
$ |
8,569 |
|
|
$ |
13,432 |
|
|
$ |
10,237 |
|
|
$ |
32,159 |
|
|
$ |
29,178 |
|
Less: One-time retirement
related expenses |
|
— |
|
|
|
1,571 |
|
|
|
— |
|
|
|
1,571 |
|
|
|
— |
|
Less: Professional fees
related to ERC |
|
(1,243 |
) |
|
|
1,243 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less: Net OREO (losses)
gains |
|
(9 |
) |
|
|
7 |
|
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
Adjusted noninterest
expenses |
$ |
9,821 |
|
|
$ |
10,611 |
|
|
$ |
10,237 |
|
|
$ |
30,590 |
|
|
$ |
29,178 |
|
Core efficiency
ratio |
|
42.79 |
% |
|
|
49.96 |
% |
|
|
48.94 |
% |
|
|
47.06 |
% |
|
|
52.98 |
% |
Southern States Bancshares (NASDAQ:SSBK)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Southern States Bancshares (NASDAQ:SSBK)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024