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 $7.4 million, or $0.76 diluted earnings per
share, for the third quarter of 2024. This compares to net income
of $8.2 million, or $0.90 diluted earnings per share, for the
second quarter of 2024, and net income of $6.6 million, or $0.73
diluted earnings per share, for the third quarter of 2023. The
Company reported core net income of $8.7 million, or $0.89 diluted
core earnings per share, for the third quarter of 2024. This
compares to core net income of $9.1 million, or $1.00 diluted core
earnings per share, for the second quarter of 2024, and core net
income of $9.6 million, or $1.06 diluted core earnings per share,
for the third quarter of 2023 (see “Reconciliation of Non-GAAP
Financial Measures”).
CEO Commentary
|
Mark Chambers, Chief Executive Officer and President of Southern
States said, “The top highlight of our third quarter was the
completion of the CBB Bancorp acquisition on August 1 as planned. I
want to welcome our new colleagues who contributed to a seamless
integration between two organizations that share a common culture.
Our combination with Century Bank has strengthened our platform to
drive loan and deposit growth across growing and attractive Georgia
markets.” |
|
“Net interest income for the third quarter increased more than
12.4% to $24.2 million for the quarter largely reflecting the
contribution from Century Bank. Net interest margin also increased
9 basis points to 3.65% from 3.56% quarter-over-quarter, which
further reflects Century Bank’s contribution.” |
|
“Finally, we were pleased to be recognized in Piper Sandler’s
Sm-All Stars: Class of 2024 for the third year in a row. The Sm-All
Stars’ objective is to identify the top performing U.S. small-cap
banks and thrifts based on growth, profitability, credit quality,
and capital strength. Our objective is to run a highly efficient
bank, consistently deliver the highest level of customer
satisfaction and increase value for our shareholders.” |
| Net
Interest Income and Net Interest Margin |
|
|
| |
Three Months Ended |
|
% Change September 30,
2024 vs. |
|
September 30,2024 |
|
June 30,2024 |
|
September 30,2023 |
|
June 30,2024 |
|
September 30,2023 |
| |
(Dollars in thousands) |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Average interest-earning assets |
$ |
2,645,388 |
|
|
$ |
2,440,425 |
|
|
$ |
2,175,103 |
|
|
8.4 |
% |
|
21.6 |
% |
| Net interest income |
$ |
24,246 |
|
|
$ |
21,579 |
|
|
$ |
20,731 |
|
|
12.4 |
% |
|
17.0 |
% |
| Net interest margin |
|
3.65 |
% |
|
|
3.56 |
% |
|
|
3.78 |
% |
|
9 bps |
|
(13) bps |
|
|
|
|
|
|
|
|
|
|
|
Net interest income for the third quarter of
2024 was $24.2 million, an increase of 12.4% from $21.6 million in
the second quarter of 2024. The increase was substantially due to
the acquisition of Century Bank.
Relative to the third quarter of 2023, net
interest income increased $3.5 million, or 17.0%. The increase was
mainly driven by significant growth, partially as a result of the
acquisition of Century Bank, which offset the decline in net
interest margin.
Net interest margin for the third quarter of
2024 was 3.65%, compared to 3.56% for the second quarter of 2024.
The increase was primarily due to a slight increase in the yield on
interest-earning assets, coupled with a decrease in the cost of
interest-bearing deposits. The acquisition of Century Bank had a
positive impact and helped lift the margin for third quarter of
2024.
Relative to the third quarter of 2023, net
interest margin decreased from 3.78%. The decrease was primarily
the result of the increase in interest rates, which accelerated the
cost of interest-bearing liabilities at a greater pace than the
yield received on interest-earning assets. The acquisition of
Century Bank resulted in a positive impact to the net interest
margin, effectively helping to reduce the cost of interest-bearing
liabilities.
|
Noninterest Income |
|
|
| |
Three Months Ended |
|
% Change September 30,
2024 vs. |
|
September 30,2024 |
|
June 30,2024 |
|
September 30,2023 |
|
June 30,2024 |
|
September 30,2023 |
| |
(Dollars in thousands) |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
$ |
532 |
|
|
$ |
462 |
|
$ |
442 |
|
|
15.2 |
% |
|
20.4 |
% |
| Swap (expense) fees |
|
(9 |
) |
|
|
4 |
|
|
453 |
|
|
325.0 |
% |
|
102.0 |
% |
| SBA/USDA fees |
|
179 |
|
|
|
58 |
|
|
74 |
|
|
208.6 |
% |
|
141.9 |
% |
| Mortgage origination fees |
|
112 |
|
|
|
92 |
|
|
158 |
|
|
21.7 |
% |
|
(29.1 |
)% |
| Net gain (loss) on
securities |
|
75 |
|
|
|
20 |
|
|
(12 |
) |
|
275.0 |
% |
|
725.0 |
% |
| Employee retention credit and
related revenue (“ERC”) |
|
— |
|
|
|
— |
|
|
(5,100 |
) |
|
N/A |
|
|
N/A |
|
| Other operating income |
|
868 |
|
|
|
732 |
|
|
1,091 |
|
|
18.6 |
% |
|
(20.4 |
)% |
|
Total noninterest income |
$ |
1,757 |
|
|
$ |
1,368 |
|
$ |
(2,894 |
) |
|
28.4 |
% |
|
160.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
Noninterest income for the third quarter of 2024
was $1.8 million, an increase of 28.4% from $1.4 million in the
second quarter of 2024. The acquisition of Century Bank on July 31,
2024 resulted in additional noninterest income during the third
quarter of 2024. Apart from the acquisition, the increase was also
due to increased SBA/USDA fees primarily resulting from the sales
of loans during the third quarter of 2024, along with a larger
realized net gain on securities during the third quarter of 2024
compared to the second quarter of 2023.
Relative to the third quarter of 2023,
noninterest income increased 160.7% from a noninterest net expense
of $2.9 million. The third quarter of 2023 included a $5.1 million
payment to the Internal Revenue Service (“IRS”) for the return of
the ERC, which was received during the second quarter of 2023. The
IRS revised eligibility guidelines during the third quarter of
2023, and the Company applied for the Voluntary Disclosure Program
and removed this from income and recorded a payable. The
acquisition of Century Bank on July 31, 2024 resulted in additional
noninterest income during the third quarter of 2024. The increase
was partially offset by a decline in swap fees during the third
quarter of 2024, substantially as a result of the Company not
participating in any swap transactions.
| Noninterest
Expense |
|
|
|
| |
Three Months Ended |
|
% Change September 30,
2024 vs. |
|
September 30,2024 |
|
June 30,2024 |
|
September 30,2023 |
|
June 30,2024 |
|
September 30,2023 |
| |
(Dollars in thousands) |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
$ |
6,876 |
|
$ |
6,112 |
|
$ |
5,752 |
|
|
12.5 |
% |
|
19.5 |
% |
| Equipment and occupancy
expenses |
|
814 |
|
|
667 |
|
|
718 |
|
|
22.0 |
% |
|
13.4 |
% |
| Data processing fees |
|
781 |
|
|
686 |
|
|
650 |
|
|
13.8 |
% |
|
20.2 |
% |
| Regulatory assessments |
|
414 |
|
|
375 |
|
|
322 |
|
|
10.4 |
% |
|
28.6 |
% |
| Professional fees related to
ERC |
|
— |
|
|
— |
|
|
(1,243 |
) |
|
N/A |
|
|
N/A |
|
| Merger-related expenses |
|
1,511 |
|
|
— |
|
|
— |
|
|
N/A |
|
|
N/A |
|
| Other operating expenses |
|
3,291 |
|
|
3,571 |
|
|
2,370 |
|
|
(7.8 |
)% |
|
38.9 |
% |
|
Total noninterest expenses |
$ |
13,687 |
|
$ |
11,411 |
|
$ |
8,569 |
|
|
19.9 |
% |
|
59.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense for the third quarter of
2024 was $13.7 million, an increase of 19.9% from $11.4 million in
the second quarter of 2024. The acquisition of Century Bank on July
31, 2024 resulted in merger-related expenses of $1.5 million, of
which $961,000 was not deductible for taxes. Also there were
additional noninterest expenses related to Century Bank during the
third quarter of 2024, primarily in salaries and employee benefits.
The acquisition also gave rise to a $106,000 increase in
amortization expense associated with the core deposit intangible.
Also included in the third quarter of 2024 was approximately
$250,000 in expenses associated with calling brokered deposits and
collection expenses related to a problem loan.
Relative to the third quarter of 2023,
noninterest expense increased 59.7% from $8.6 million. The
acquisition of Century Bank on July 31, 2024 resulted in
merger-related expenses of $1.5 million, along with additional
noninterest expense during the third quarter of 2024. Salaries and
employee benefits increased as a result of the acquisition and from
a legacy standpoint. The third quarter of 2023 included a $1.2
million refund of professional fees related to the aforementioned
return of ERC.
| Loans and Credit
Quality |
|
|
|
| |
Three Months Ended |
|
% Change September 30,
2024 vs. |
|
September 30,2024 |
|
June 30,2024 |
|
September 30,2023 |
|
June 30,2024 |
|
September 30,2023 |
|
(Dollars in thousands) |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Gross loans |
$ |
2,205,747 |
|
|
$ |
2,021,877 |
|
|
$ |
1,779,846 |
|
|
9.1 |
% |
|
23.9 |
% |
| Unearned income |
|
(6,536 |
) |
|
|
(6,443 |
) |
|
|
(5,698 |
) |
|
1.4 |
% |
|
14.7 |
% |
| Loans, net of unearned income
(“Loans”) |
|
2,199,211 |
|
|
|
2,015,434 |
|
|
|
1,774,148 |
|
|
9.1 |
% |
|
24.0 |
% |
| Average loans, net of unearned
(“Average loans”) |
$ |
2,134,318 |
|
|
$ |
1,987,533 |
|
|
$ |
1,740,582 |
|
|
7.4 |
% |
|
22.6 |
% |
| |
|
|
|
|
|
|
|
|
|
| Nonperforming loans
(“NPL”) |
$ |
7,868 |
|
|
$ |
3,784 |
|
|
$ |
1,082 |
|
|
107.9 |
% |
|
627.2 |
% |
| Provision for credit
losses |
$ |
2,583 |
|
|
$ |
1,067 |
|
|
$ |
773 |
|
|
142.1 |
% |
|
234.2 |
% |
| Allowance for credit losses
(“ACL”) |
$ |
28,061 |
|
|
$ |
25,828 |
|
|
$ |
22,181 |
|
|
8.6 |
% |
|
26.5 |
% |
| Net charge-offs
(recoveries) |
$ |
350 |
|
|
$ |
383 |
|
|
$ |
(23 |
) |
|
(8.6 |
)% |
|
1621.7 |
% |
| NPL to gross loans |
|
0.36 |
% |
|
|
0.19 |
% |
|
|
0.06 |
% |
|
|
|
|
| Net charge-offs (recoveries)
to average loans(1) |
|
0.07 |
% |
|
|
0.08 |
% |
|
(0.01 |
)% |
|
|
|
|
| ACL to loans |
|
1.28 |
% |
|
|
1.28 |
% |
|
|
1.25 |
% |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| (1) Ratio is annualized. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned income, were $2.2 billion
at September 30, 2024, up $183.8 million from June 30,
2024 and up $425.1 million from September 30, 2023. The
acquisition of Century Bank resulted in additional loans of $131.7
million at September 30, 2024. Apart from the acquired loans,
the linked-quarter increase in loans was primarily attributable to
new business growth across our footprint.
Nonperforming loans totaled $7.9 million, or
0.36% of gross loans, at September 30, 2024, compared with
$3.8 million, or 0.19% of gross loans, at June 30, 2024, and
$1.1 million, or 0.06% of gross loans, at September 30, 2023.
The $4.1 million net increase in nonperforming loans in the third
quarter of 2024 was primarily attributable to a significant
commercial and industrial loan that was added to nonaccrual status
and partially offset by a commercial and industrial loan that was
charged-off. The $6.8 million net increase in nonperforming loans
from September 30, 2023, was primarily attributable to one
significant commercial and industrial loan, another less
significant commercial and industrial loan and one commercial real
estate loan that were added to nonaccrual status. Significant
collection efforts have been made on the large commercial and
industrial loan and no loss is anticipated.
The Company recorded a provision for credit
losses of $2.6 million for the third quarter of 2024, compared to
$1.1 million for the second quarter of 2024. Provision in the third
quarter of 2024 included a “Day 2” $1.7 million provision as a
result of the acquisition as well as additional provisions based on
growth.
Net charge-offs for the third quarter of 2024
were $350,000, or 0.07% of average loans on an annualized basis,
compared to net charge-offs of $383,000, or 0.08% of average loans
on an annualized basis, for the second quarter of 2024, and net
recoveries of $23,000, or (0.01)% of average loans on an annualized
basis, for the third quarter of 2023. The charge-offs recorded
during the second and third quarters of 2024 were substantially
related to a purchased pool of consumer loans for which the
borrower filed for bankruptcy. The loan was fully charged-off as of
September 30, 2024.
The Company’s allowance for credit losses was
1.28% of total loans and 356.65% of nonperforming loans at
September 30, 2024, compared with 1.28% of total loans and
682.56% of nonperforming loans at June 30, 2024. Allowance for
credit losses on unfunded commitments was $1.4 million at
September 30, 2024.
| Deposits |
|
|
|
| |
Three Months Ended |
|
% Change September 30,
2024 vs. |
|
September 30,2024 |
|
June 30,2024 |
|
September 30,2023 |
|
June 30,2024 |
|
September 30,2023 |
| |
(Dollars in thousands) |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
546,282 |
|
|
$ |
416,068 |
|
|
$ |
418,125 |
|
|
31.3 |
% |
|
30.7 |
% |
| Interest-bearing deposits |
|
1,874,264 |
|
|
|
1,759,610 |
|
|
|
1,498,276 |
|
|
6.5 |
% |
|
25.1 |
% |
|
Total deposits |
$ |
2,420,546 |
|
|
$ |
2,175,678 |
|
|
$ |
1,916,401 |
|
|
11.3 |
% |
|
26.3 |
% |
| |
|
|
|
|
|
|
|
|
|
| Uninsured deposits |
$ |
964,528 |
|
|
$ |
645,283 |
|
|
$ |
568,323 |
|
|
49.5 |
% |
|
69.7 |
% |
| Uninsured deposits to total
deposits |
|
39.85 |
% |
|
|
29.66 |
% |
|
|
29.66 |
% |
|
|
|
|
| Noninterest deposits to total
deposits |
|
22.57 |
% |
|
|
19.12 |
% |
|
|
21.82 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits were $2.4 billion at
September 30, 2024, up from $2.2 billion at June 30, 2024
and $1.9 billion at September 30, 2023. The $244.9 million
increase in total deposits in the third quarter was due to an
increase of $130.2 million in noninterest-bearing deposits and a
$114.7 million increase in interest-bearing deposits. The
acquisition of Century Bank resulted in additional deposits of
$304.4 million at September 30, 2024, or $183.4 million in
interest-bearing deposits, none of which were brokered deposits,
and $121.0 million in noninterest-bearing deposits. Total brokered
deposits were $194.2 million at September 30, 2024, compared
to $288.3 million at June 30, 2024. The Company used cash from
the acquisition of Century Bank to call $52.3 million of brokered
deposits, while another $41.9 million matured and were repaid.
| Capital |
|
|
|
|
|
| |
September 30,2024 |
|
June 30,2024 |
|
September 30,2023 |
|
Company |
|
Bank |
|
Company |
|
Bank |
|
Company |
|
Bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital ratio to average assets |
8.64 |
% |
|
11.48 |
% |
|
8.72 |
% |
|
11.52 |
% |
|
8.70 |
% |
|
11.71 |
% |
| Risk-based capital
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 (“CET1”) capital ratio |
9.36 |
% |
|
12.43 |
% |
|
9.54 |
% |
|
12.61 |
% |
|
9.32 |
% |
|
12.55 |
% |
|
Tier 1 capital ratio |
9.36 |
% |
|
12.43 |
% |
|
9.54 |
% |
|
12.61 |
% |
|
9.32 |
% |
|
12.55 |
% |
|
Total capital ratio |
14.18 |
% |
|
13.59 |
% |
|
14.50 |
% |
|
13.77 |
% |
|
14.60 |
% |
|
13.67 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
As of September 30, 2024, total
stockholders’ equity was $271.4 million, up from $230.6 million at
June 30, 2024. The increase of $40.8 million was substantially
due to the issuance of $31.5 million in common stock for the
acquisition of Century Bank.
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 15 branches in Alabama and Georgia
and two loan production offices in Atlanta.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the federal securities laws, which
reflect our current expectations and beliefs with respect to, among
other things, future events and our financial performance. These
forward-looking statements are not historical facts, and are based
on current expectations, estimates and projections about our
industry, management’s beliefs and certain assumptions made by
management, many of which, by their nature, are inherently
uncertain and beyond our control. This may be especially true given
recent events and trends in the banking industry. 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, 2023 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 our acquisition of
Century Bank of Georgia, business strategy and prospects for
growth, operations, ability to pay dividends, competition,
regulation and general economic conditions.
Contact Information
|
Lynn Joyce |
|
|
|
Margaret Boyce |
| (205)
820-8065 |
|
|
|
(310)
622-8247 |
|
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 30,2024 |
|
June 30,2024 |
|
September 30,2023 |
|
September 30,2024 |
|
September 30,2023 |
|
|
|
|
|
|
|
|
|
|
| Results of
Operations |
|
|
|
|
|
|
|
|
|
|
Interest income |
$ |
45,068 |
|
|
$ |
41,007 |
|
|
$ |
35,204 |
|
|
$ |
124,811 |
|
|
$ |
96,088 |
|
| Interest expense |
|
20,822 |
|
|
|
19,428 |
|
|
|
14,473 |
|
|
|
58,147 |
|
|
|
36,379 |
|
| Net interest income |
|
24,246 |
|
|
|
21,579 |
|
|
|
20,731 |
|
|
|
66,664 |
|
|
|
59,709 |
|
| Provision for credit
losses |
|
2,583 |
|
|
|
1,067 |
|
|
|
773 |
|
|
|
4,885 |
|
|
|
3,511 |
|
| Net interest income after
provision |
|
21,663 |
|
|
|
20,512 |
|
|
|
19,958 |
|
|
|
61,779 |
|
|
|
56,198 |
|
| Noninterest income |
|
1,757 |
|
|
|
1,368 |
|
|
|
(2,894 |
) |
|
|
4,393 |
|
|
|
5,755 |
|
| Noninterest expense |
|
13,687 |
|
|
|
11,411 |
|
|
|
8,569 |
|
|
|
35,473 |
|
|
|
32,159 |
|
| Income tax expense |
|
2,380 |
|
|
|
2,271 |
|
|
|
1,866 |
|
|
|
7,029 |
|
|
|
6,738 |
|
| Net income |
$ |
7,353 |
|
|
$ |
8,198 |
|
|
$ |
6,629 |
|
|
$ |
23,670 |
|
|
$ |
23,056 |
|
| Core net income(1) |
$ |
8,675 |
|
|
$ |
9,058 |
|
|
$ |
9,563 |
|
|
$ |
25,862 |
|
|
$ |
23,901 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and Per Share Data |
|
|
|
|
|
|
|
|
|
| Shares issued and
outstanding |
|
9,882,350 |
|
|
|
8,908,130 |
|
|
|
8,834,168 |
|
|
|
9,882,350 |
|
|
|
8,834,168 |
|
| Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
9,608,868 |
|
|
|
8,957,608 |
|
|
|
8,846,018 |
|
|
|
9,161,622 |
|
|
|
8,791,007 |
|
|
Diluted |
|
9,725,884 |
|
|
|
9,070,568 |
|
|
|
9,040,687 |
|
|
|
9,297,778 |
|
|
|
9,016,603 |
|
| Earnings per share: |
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.76 |
|
|
$ |
0.91 |
|
|
$ |
0.75 |
|
|
$ |
2.58 |
|
|
$ |
2.62 |
|
|
Diluted |
|
0.76 |
|
|
|
0.90 |
|
|
|
0.73 |
|
|
|
2.54 |
|
|
|
2.56 |
|
|
Core - diluted(1) |
|
0.89 |
|
|
|
1.00 |
|
|
|
1.06 |
|
|
|
2.78 |
|
|
|
2.65 |
|
| Book value per share |
|
27.46 |
|
|
|
25.88 |
|
|
|
22.86 |
|
|
|
27.46 |
|
|
|
22.86 |
|
| Tangible book value per
share(1) |
|
23.38 |
|
|
|
23.91 |
|
|
|
20.84 |
|
|
|
23.38 |
|
|
|
20.84 |
|
| Cash dividends per common
share |
|
0.09 |
|
|
|
0.09 |
|
|
|
0.09 |
|
|
|
0.27 |
|
|
|
0.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance and Financial Ratios |
|
|
|
|
|
|
|
|
|
| ROAA |
|
1.05 |
% |
|
|
1.29 |
% |
|
|
1.15 |
% |
|
|
1.22 |
% |
|
|
1.41 |
% |
| ROAE |
|
11.89 |
% |
|
|
14.55 |
% |
|
|
12.96 |
% |
|
|
13.70 |
% |
|
|
15.85 |
% |
| Core ROAA(1) |
|
1.24 |
% |
|
|
1.43 |
% |
|
|
1.66 |
% |
|
|
1.33 |
% |
|
|
1.47 |
% |
| ROATCE(1) |
|
13.35 |
% |
|
|
15.79 |
% |
|
|
14.21 |
% |
|
|
15.05 |
% |
|
|
17.47 |
% |
| Core ROATCE(1) |
|
15.74 |
% |
|
|
17.44 |
% |
|
|
20.50 |
% |
|
|
16.45 |
% |
|
|
18.11 |
% |
| NIM |
|
3.65 |
% |
|
|
3.56 |
% |
|
|
3.78 |
% |
|
|
3.60 |
% |
|
|
3.85 |
% |
| NIM - FTE(1) |
|
3.66 |
% |
|
|
3.57 |
% |
|
|
3.79 |
% |
|
|
3.61 |
% |
|
|
3.87 |
% |
| Net interest spread |
|
2.66 |
% |
|
|
2.59 |
% |
|
|
2.84 |
% |
|
|
2.63 |
% |
|
|
3.00 |
% |
| Yield on loans |
|
7.21 |
% |
|
|
7.17 |
% |
|
|
6.86 |
% |
|
|
7.15 |
% |
|
|
6.62 |
% |
| Yield on interest-earning
assets |
|
6.78 |
% |
|
|
6.76 |
% |
|
|
6.42 |
% |
|
|
6.74 |
% |
|
|
6.20 |
% |
| Cost of interest-bearing
liabilities |
|
4.12 |
% |
|
|
4.17 |
% |
|
|
3.58 |
% |
|
|
4.11 |
% |
|
|
3.20 |
% |
| Cost of funds(2) |
|
3.31 |
% |
|
|
3.41 |
% |
|
|
2.80 |
% |
|
|
3.33 |
% |
|
|
2.48 |
% |
| Cost of interest-bearing
deposits |
|
4.03 |
% |
|
|
4.07 |
% |
|
|
3.43 |
% |
|
|
4.01 |
% |
|
|
3.02 |
% |
| Cost of total deposits |
|
3.19 |
% |
|
|
3.27 |
% |
|
|
2.63 |
% |
|
|
3.20 |
% |
|
|
2.29 |
% |
| Noninterest deposits to total
deposits |
|
22.57 |
% |
|
|
19.12 |
% |
|
|
21.82 |
% |
|
|
22.57 |
% |
|
|
21.82 |
% |
| Core deposits to total
deposits |
|
86.30 |
% |
|
|
81.78 |
% |
|
|
86.58 |
% |
|
|
86.30 |
% |
|
|
86.58 |
% |
| Uninsured deposits to total
deposits |
|
39.85 |
% |
|
|
29.66 |
% |
|
|
29.66 |
% |
|
|
39.85 |
% |
|
|
29.66 |
% |
| Total loans to total
deposits |
|
90.86 |
% |
|
|
92.63 |
% |
|
|
92.58 |
% |
|
|
90.86 |
% |
|
|
92.58 |
% |
| Efficiency ratio |
|
52.79 |
% |
|
|
49.78 |
% |
|
|
48.01 |
% |
|
|
49.98 |
% |
|
|
49.47 |
% |
| Core efficiency ratio(1) |
|
46.96 |
% |
|
|
44.75 |
% |
|
|
42.79 |
% |
|
|
46.23 |
% |
|
|
47.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
(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 30,2024 |
|
June 30,2024 |
|
September 30,2023 |
|
September 30,2024 |
|
September 30,2023 |
|
|
|
|
|
|
|
|
|
|
| Financial Condition
(ending) |
|
|
|
|
|
|
|
|
|
|
Total loans |
$ |
2,199,211 |
|
|
$ |
2,015,434 |
|
|
$ |
1,774,148 |
|
|
$ |
2,199,211 |
|
|
$ |
1,774,148 |
|
| Total securities |
|
217,692 |
|
|
|
204,131 |
|
|
|
189,496 |
|
|
|
217,692 |
|
|
|
189,496 |
|
| Total assets |
|
2,841,440 |
|
|
|
2,572,011 |
|
|
|
2,296,527 |
|
|
|
2,841,440 |
|
|
|
2,296,527 |
|
| Total noninterest-bearing
deposits |
|
546,282 |
|
|
|
416,068 |
|
|
|
418,125 |
|
|
|
546,282 |
|
|
|
418,125 |
|
| Total core deposits(1) |
|
2,088,993 |
|
|
|
1,779,253 |
|
|
|
1,659,291 |
|
|
|
2,088,993 |
|
|
|
1,659,291 |
|
| Total deposits |
|
2,420,546 |
|
|
|
2,175,678 |
|
|
|
1,916,401 |
|
|
|
2,420,546 |
|
|
|
1,916,401 |
|
| Total borrowings |
|
121,083 |
|
|
|
136,873 |
|
|
|
146,573 |
|
|
|
121,083 |
|
|
|
146,573 |
|
| Total liabilities |
|
2,570,070 |
|
|
|
2,341,430 |
|
|
|
2,094,603 |
|
|
|
2,570,070 |
|
|
|
2,094,603 |
|
| Total shareholders’
equity |
|
271,370 |
|
|
|
230,581 |
|
|
|
201,924 |
|
|
|
271,370 |
|
|
|
201,924 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Condition (average) |
|
|
|
|
|
|
|
|
|
| Total loans |
$ |
2,134,318 |
|
|
$ |
1,987,533 |
|
|
$ |
1,740,582 |
|
|
$ |
2,013,157 |
|
|
$ |
1,676,134 |
|
| Total securities |
|
223,750 |
|
|
|
210,678 |
|
|
|
201,830 |
|
|
|
214,494 |
|
|
|
197,005 |
|
| Total other interest-earning
assets |
|
287,320 |
|
|
|
242,214 |
|
|
|
232,691 |
|
|
|
247,035 |
|
|
|
199,379 |
|
| Total interest-earning
assets |
|
2,645,388 |
|
|
|
2,440,425 |
|
|
|
2,175,103 |
|
|
|
2,474,686 |
|
|
|
2,072,518 |
|
| Total assets |
|
2,777,215 |
|
|
|
2,553,010 |
|
|
|
2,282,217 |
|
|
|
2,593,175 |
|
|
|
2,180,851 |
|
| Total noninterest-bearing
deposits |
|
490,450 |
|
|
|
420,885 |
|
|
|
448,616 |
|
|
|
442,667 |
|
|
|
442,149 |
|
| Total interest-bearing
deposits |
|
1,874,861 |
|
|
|
1,729,682 |
|
|
|
1,472,024 |
|
|
|
1,746,420 |
|
|
|
1,395,529 |
|
| Total deposits |
|
2,365,311 |
|
|
|
2,150,567 |
|
|
|
1,920,640 |
|
|
|
2,189,087 |
|
|
|
1,837,678 |
|
| Total borrowings |
|
134,035 |
|
|
|
143,189 |
|
|
|
129,882 |
|
|
|
141,970 |
|
|
|
122,156 |
|
| Total interest-bearing
liabilities |
|
2,008,896 |
|
|
|
1,872,871 |
|
|
|
1,601,906 |
|
|
|
1,888,390 |
|
|
|
1,517,685 |
|
| Total shareholders’
equity |
|
246,081 |
|
|
|
226,527 |
|
|
|
202,955 |
|
|
|
230,799 |
|
|
|
194,430 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality |
|
|
|
|
|
|
|
|
|
| Nonperforming loans |
$ |
7,868 |
|
|
$ |
3,784 |
|
|
$ |
1,082 |
|
|
$ |
7,868 |
|
|
$ |
1,082 |
|
| Other real estate owned
(“OREO”) |
$ |
33 |
|
|
$ |
33 |
|
|
$ |
2,903 |
|
|
$ |
33 |
|
|
$ |
2,903 |
|
| Nonperforming assets
(“NPA”) |
$ |
7,901 |
|
|
$ |
3,817 |
|
|
$ |
3,985 |
|
|
$ |
7,901 |
|
|
$ |
3,985 |
|
| Net charge-offs to average
loans(2) |
|
0.07 |
% |
|
|
0.08 |
% |
|
(0.01 |
)% |
|
|
0.08 |
% |
|
|
0.02 |
% |
| Provision for credit losses to
average loans(2) |
|
0.48 |
% |
|
|
0.22 |
% |
|
|
0.18 |
% |
|
|
0.32 |
% |
|
|
0.28 |
% |
| ACL to loans |
|
1.28 |
% |
|
|
1.28 |
% |
|
|
1.25 |
% |
|
|
1.28 |
% |
|
|
1.25 |
% |
| ACL to gross loans |
|
1.27 |
% |
|
|
1.28 |
% |
|
|
1.25 |
% |
|
|
1.27 |
% |
|
|
1.25 |
% |
| ACL to NPL |
|
356.65 |
% |
|
|
682.56 |
% |
|
|
2050.00 |
% |
|
|
356.65 |
% |
|
|
2050.00 |
% |
| NPL to loans |
|
0.36 |
% |
|
|
0.19 |
% |
|
|
0.06 |
% |
|
|
0.36 |
% |
|
|
0.06 |
% |
| NPL to gross loans |
|
0.36 |
% |
|
|
0.19 |
% |
|
|
0.06 |
% |
|
|
0.36 |
% |
|
|
0.06 |
% |
| NPA to gross loans and
OREO |
|
0.36 |
% |
|
|
0.19 |
% |
|
|
0.22 |
% |
|
|
0.36 |
% |
|
|
0.22 |
% |
| NPA to total assets |
|
0.28 |
% |
|
|
0.15 |
% |
|
|
0.17 |
% |
|
|
0.28 |
% |
|
|
0.17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory and Other Capital Ratios |
|
|
|
|
|
|
|
|
|
| Total shareholders’ equity to
total assets |
|
9.55 |
% |
|
|
8.97 |
% |
|
|
8.79 |
% |
|
|
9.55 |
% |
|
|
8.79 |
% |
| Tangible common equity to
tangible assets(3) |
|
8.25 |
% |
|
|
8.34 |
% |
|
|
8.08 |
% |
|
|
8.25 |
% |
|
|
8.08 |
% |
| Tier 1 capital ratio to
average assets |
|
8.64 |
% |
|
|
8.72 |
% |
|
|
8.70 |
% |
|
|
8.64 |
% |
|
|
8.70 |
% |
| Risk-based capital
ratios: |
|
|
|
|
|
|
|
|
|
|
CET1 capital ratio |
|
9.36 |
% |
|
|
9.54 |
% |
|
|
9.32 |
% |
|
|
9.36 |
% |
|
|
9.32 |
% |
|
Tier 1 capital ratio |
|
9.36 |
% |
|
|
9.54 |
% |
|
|
9.32 |
% |
|
|
9.36 |
% |
|
|
9.32 |
% |
|
Total capital ratio |
|
14.18 |
% |
|
|
14.50 |
% |
|
|
14.60 |
% |
|
|
14.18 |
% |
|
|
14.60 |
% |
|
|
|
|
|
|
|
|
|
|
|
(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 30,2024 |
|
June 30,2024 |
|
December 31,2023 |
|
September 30,2023 |
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
24,225 |
|
|
$ |
21,598 |
|
|
$ |
19,710 |
|
|
$ |
31,047 |
|
| Interest-bearing deposits in
banks |
|
182,559 |
|
|
|
140,440 |
|
|
|
134,846 |
|
|
|
103,646 |
|
| Federal funds sold |
|
71,072 |
|
|
|
76,334 |
|
|
|
96,095 |
|
|
|
81,487 |
|
|
Total cash and cash equivalents |
|
277,856 |
|
|
|
238,372 |
|
|
|
250,651 |
|
|
|
216,180 |
|
| |
|
|
|
|
|
|
|
| Securities available for sale,
at fair value |
|
198,076 |
|
|
|
184,510 |
|
|
|
179,000 |
|
|
|
169,859 |
|
| Securities held to maturity,
at amortized cost |
|
19,616 |
|
|
|
19,621 |
|
|
|
19,632 |
|
|
|
19,637 |
|
| Other equity securities, at
fair value |
|
3,733 |
|
|
|
3,658 |
|
|
|
3,649 |
|
|
|
3,654 |
|
| Restricted equity securities,
at cost |
|
4,418 |
|
|
|
4,633 |
|
|
|
5,684 |
|
|
|
4,971 |
|
| Loans held for sale |
|
415 |
|
|
|
1,716 |
|
|
|
450 |
|
|
|
1,799 |
|
| |
|
|
|
|
|
|
|
| Loans, net of unearned
income |
|
2,199,211 |
|
|
|
2,015,434 |
|
|
|
1,884,508 |
|
|
|
1,774,148 |
|
| Less allowance for credit
losses |
|
28,061 |
|
|
|
25,828 |
|
|
|
24,378 |
|
|
|
22,181 |
|
|
Loans, net |
|
2,171,150 |
|
|
|
1,989,606 |
|
|
|
1,860,130 |
|
|
|
1,751,967 |
|
| |
|
|
|
|
|
|
|
| Premises and equipment,
net |
|
32,319 |
|
|
|
26,192 |
|
|
|
26,426 |
|
|
|
26,694 |
|
| Accrued interest
receivable |
|
10,114 |
|
|
|
9,654 |
|
|
|
8,711 |
|
|
|
8,321 |
|
| Bank owned life insurance |
|
39,159 |
|
|
|
33,000 |
|
|
|
29,884 |
|
|
|
29,697 |
|
| Annuities |
|
16,843 |
|
|
|
15,918 |
|
|
|
15,036 |
|
|
|
15,266 |
|
| Foreclosed assets |
|
33 |
|
|
|
33 |
|
|
|
33 |
|
|
|
2,903 |
|
| Goodwill |
|
30,980 |
|
|
|
16,862 |
|
|
|
16,862 |
|
|
|
16,862 |
|
| Core deposit intangible |
|
9,338 |
|
|
|
735 |
|
|
|
899 |
|
|
|
981 |
|
| Other assets |
|
27,390 |
|
|
|
27,501 |
|
|
|
29,616 |
|
|
|
27,736 |
|
| |
|
|
|
|
|
|
|
|
Total assets |
$ |
2,841,440 |
|
|
$ |
2,572,011 |
|
|
$ |
2,446,663 |
|
|
$ |
2,296,527 |
|
| |
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
Noninterest-bearing |
$ |
546,282 |
|
|
$ |
416,068 |
|
|
$ |
437,959 |
|
|
$ |
418,125 |
|
|
Interest-bearing |
|
1,874,264 |
|
|
|
1,759,610 |
|
|
|
1,580,230 |
|
|
|
1,498,276 |
|
|
Total deposits |
|
2,420,546 |
|
|
|
2,175,678 |
|
|
|
2,018,189 |
|
|
|
1,916,401 |
|
| |
|
|
|
|
|
|
|
| Other borrowings |
|
7,976 |
|
|
|
8,000 |
|
|
|
26,994 |
|
|
|
4,991 |
|
| FHLB advances |
|
22,000 |
|
|
|
42,000 |
|
|
|
70,000 |
|
|
|
55,000 |
|
| Subordinated notes |
|
91,107 |
|
|
|
86,873 |
|
|
|
86,679 |
|
|
|
86,582 |
|
| Accrued interest payable |
|
2,214 |
|
|
|
2,024 |
|
|
|
1,519 |
|
|
|
1,280 |
|
| Other liabilities |
|
26,227 |
|
|
|
26,855 |
|
|
|
28,318 |
|
|
|
30,349 |
|
| |
|
|
|
|
|
|
|
|
Total liabilities |
|
2,570,070 |
|
|
|
2,341,430 |
|
|
|
2,231,699 |
|
|
|
2,094,603 |
|
| |
|
|
|
|
|
|
|
| Stockholders' equity: |
|
|
|
|
|
|
|
|
Common stock |
|
49,684 |
|
|
|
44,813 |
|
|
|
44,479 |
|
|
|
44,307 |
|
|
Capital surplus |
|
106,046 |
|
|
|
79,248 |
|
|
|
78,361 |
|
|
|
77,671 |
|
|
Retained earnings |
|
123,783 |
|
|
|
117,233 |
|
|
|
102,523 |
|
|
|
94,429 |
|
|
Accumulated other comprehensive loss |
|
(5,866 |
) |
|
|
(8,333 |
) |
|
|
(8,379 |
) |
|
|
(13,126 |
) |
|
Unvested restricted stock |
|
(723 |
) |
|
|
(826 |
) |
|
|
(466 |
) |
|
|
(580 |
) |
|
Vested restricted stock units |
|
(1,554 |
) |
|
|
(1,554 |
) |
|
|
(1,554 |
) |
|
|
(777 |
) |
| |
|
|
|
|
|
|
|
|
Total stockholders' equity |
|
271,370 |
|
|
|
230,581 |
|
|
|
214,964 |
|
|
|
201,924 |
|
| |
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
2,841,440 |
|
|
$ |
2,572,011 |
|
|
$ |
2,446,663 |
|
|
$ |
2,296,527 |
|
|
CONSOLIDATED STATEMENTS OF INCOME |
|
(Dollars in thousands, except per share amounts) |
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Nine Months Ended |
|
September 30,2024 |
|
June 30,2024 |
|
September 30,2023 |
|
September 30,2024 |
|
September 30,2023 |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
| Interest
income: |
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
38,690 |
|
|
$ |
35,421 |
|
$ |
30,084 |
|
|
$ |
107,739 |
|
$ |
83,049 |
|
Taxable securities |
|
2,205 |
|
|
|
2,039 |
|
|
1,796 |
|
|
|
6,225 |
|
|
4,819 |
|
Nontaxable securities |
|
243 |
|
|
|
231 |
|
|
227 |
|
|
|
704 |
|
|
747 |
|
Other interest and dividends |
|
3,930 |
|
|
|
3,316 |
|
|
3,097 |
|
|
|
10,143 |
|
|
7,473 |
|
Total interest income |
|
45,068 |
|
|
|
41,007 |
|
|
35,204 |
|
|
|
124,811 |
|
|
96,088 |
| |
|
|
|
|
|
|
|
|
|
| Interest
expense: |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
18,990 |
|
|
|
17,511 |
|
|
12,732 |
|
|
|
52,407 |
|
|
31,498 |
|
Other borrowings |
|
1,832 |
|
|
|
1,917 |
|
|
1,741 |
|
|
|
5,740 |
|
|
4,881 |
|
Total interest expense |
|
20,822 |
|
|
|
19,428 |
|
|
14,473 |
|
|
|
58,147 |
|
|
36,379 |
| |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
24,246 |
|
|
|
21,579 |
|
|
20,731 |
|
|
|
66,664 |
|
|
59,709 |
| Provision for credit
losses |
|
2,583 |
|
|
|
1,067 |
|
|
773 |
|
|
|
4,885 |
|
|
3,511 |
|
Net interest income after provision for credit
losses |
|
21,663 |
|
|
|
20,512 |
|
|
19,958 |
|
|
|
61,779 |
|
|
56,198 |
| |
|
|
|
|
|
|
|
|
|
| Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
532 |
|
|
|
462 |
|
|
442 |
|
|
|
1,458 |
|
|
1,348 |
|
Swap (expenses) fees |
|
(9 |
) |
|
|
4 |
|
|
453 |
|
|
|
10 |
|
|
622 |
|
SBA/USDA fees |
|
179 |
|
|
|
58 |
|
|
74 |
|
|
|
302 |
|
|
274 |
|
Mortgage origination fees |
|
112 |
|
|
|
92 |
|
|
158 |
|
|
|
300 |
|
|
446 |
|
Net gain (loss) on securities |
|
75 |
|
|
|
20 |
|
|
(12 |
) |
|
|
83 |
|
|
457 |
|
Employee retention credit and related revenue |
|
— |
|
|
|
— |
|
|
(5,100 |
) |
|
|
— |
|
|
— |
|
Other operating income |
|
868 |
|
|
|
732 |
|
|
1,091 |
|
|
|
2,240 |
|
|
2,608 |
|
Total noninterest income |
|
1,757 |
|
|
|
1,368 |
|
|
(2,894 |
) |
|
|
4,393 |
|
|
5,755 |
| |
|
|
|
|
|
|
|
|
|
| Noninterest
expenses: |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
6,876 |
|
|
|
6,112 |
|
|
5,752 |
|
|
|
19,219 |
|
|
19,926 |
|
Equipment and occupancy expenses |
|
814 |
|
|
|
667 |
|
|
718 |
|
|
|
2,170 |
|
|
2,095 |
|
Data processing fees |
|
781 |
|
|
|
686 |
|
|
650 |
|
|
|
2,110 |
|
|
1,889 |
|
Regulatory assessments |
|
414 |
|
|
|
375 |
|
|
322 |
|
|
|
1,149 |
|
|
844 |
|
Professional fees related to ERC |
|
— |
|
|
|
— |
|
|
(1,243 |
) |
|
|
— |
|
|
— |
|
Merger-related expenses |
|
1,511 |
|
|
|
— |
|
|
— |
|
|
|
1,511 |
|
|
— |
|
Other operating expenses |
|
3,291 |
|
|
|
3,571 |
|
|
2,370 |
|
|
|
9,314 |
|
|
7,405 |
|
Total noninterest expenses |
|
13,687 |
|
|
|
11,411 |
|
|
8,569 |
|
|
|
35,473 |
|
|
32,159 |
| |
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
9,733 |
|
|
|
10,469 |
|
|
8,495 |
|
|
|
30,699 |
|
|
29,794 |
| |
|
|
|
|
|
|
|
|
|
| Income tax expense |
|
2,380 |
|
|
|
2,271 |
|
|
1,866 |
|
|
|
7,029 |
|
|
6,738 |
| |
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
7,353 |
|
|
$ |
8,198 |
|
$ |
6,629 |
|
|
$ |
23,670 |
|
$ |
23,056 |
| |
|
|
|
|
|
|
|
|
|
| Basic earnings per
share |
$ |
0.76 |
|
|
$ |
0.91 |
|
$ |
0.75 |
|
|
$ |
2.58 |
|
$ |
2.62 |
| |
|
|
|
|
|
|
|
|
|
| Diluted earnings per
share |
$ |
0.76 |
|
|
$ |
0.90 |
|
$ |
0.73 |
|
|
$ |
2.54 |
|
$ |
2.56 |
|
AVERAGE BALANCE SHEET AND NET INTEREST MARGIN |
|
(Dollars in thousands) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
September 30,2024 |
|
June 30,2024 |
|
September 30,2023 |
|
AverageBalance |
|
Interest |
|
Yield/Rate |
|
AverageBalance |
|
Interest |
|
Yield/Rate |
|
AverageBalance |
|
Interest |
|
Yield/Rate |
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned income(1) |
$ |
2,134,318 |
|
|
$ |
38,690 |
|
7.21 |
% |
|
$ |
1,987,533 |
|
|
$ |
35,421 |
|
7.17 |
% |
|
$ |
1,740,582 |
|
|
$ |
30,084 |
|
6.86 |
% |
| Taxable securities |
|
177,164 |
|
|
|
2,205 |
|
4.95 |
% |
|
|
165,141 |
|
|
|
2,039 |
|
4.97 |
% |
|
|
156,364 |
|
|
|
1,796 |
|
4.56 |
% |
| Nontaxable securities |
|
46,586 |
|
|
|
243 |
|
2.08 |
% |
|
|
45,537 |
|
|
|
231 |
|
2.04 |
% |
|
|
45,466 |
|
|
|
227 |
|
1.98 |
% |
| Other interest-earnings
assets |
|
287,320 |
|
|
|
3,930 |
|
5.44 |
% |
|
|
242,214 |
|
|
|
3,316 |
|
5.51 |
% |
|
|
232,691 |
|
|
|
3,097 |
|
5.28 |
% |
|
Total interest-earning assets |
$ |
2,645,388 |
|
|
$ |
45,068 |
|
6.78 |
% |
|
$ |
2,440,425 |
|
|
$ |
41,007 |
|
6.76 |
% |
|
$ |
2,175,103 |
|
|
$ |
35,204 |
|
6.42 |
% |
|
Allowance for credit losses |
|
(27,253 |
) |
|
|
|
|
|
|
(25,332 |
) |
|
|
|
|
|
|
(21,606 |
) |
|
|
|
|
|
Noninterest-earning assets |
|
159,080 |
|
|
|
|
|
|
|
137,917 |
|
|
|
|
|
|
|
128,720 |
|
|
|
|
|
|
Total Assets |
$ |
2,777,215 |
|
|
|
|
|
|
$ |
2,553,010 |
|
|
|
|
|
|
$ |
2,282,217 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction accounts |
|
95,040 |
|
|
|
30 |
|
0.13 |
% |
|
|
85,976 |
|
|
|
21 |
|
0.10 |
% |
|
|
88,668 |
|
|
|
20 |
|
0.09 |
% |
|
Savings and money market accounts |
|
1,042,661 |
|
|
|
10,264 |
|
3.92 |
% |
|
|
929,930 |
|
|
|
9,229 |
|
3.99 |
% |
|
|
867,066 |
|
|
|
7,767 |
|
3.55 |
% |
|
Time deposits |
|
737,160 |
|
|
|
8,696 |
|
4.69 |
% |
|
|
713,776 |
|
|
|
8,261 |
|
4.65 |
% |
|
|
516,290 |
|
|
|
4,945 |
|
3.80 |
% |
|
FHLB advances |
|
36,130 |
|
|
|
455 |
|
5.01 |
% |
|
|
48,374 |
|
|
|
596 |
|
4.96 |
% |
|
|
43,261 |
|
|
|
514 |
|
4.72 |
% |
|
Other borrowings |
|
97,905 |
|
|
|
1,377 |
|
5.59 |
% |
|
|
94,815 |
|
|
|
1,321 |
|
5.60 |
% |
|
|
86,621 |
|
|
|
1,227 |
|
5.62 |
% |
|
Total interest-bearing liabilities |
$ |
2,008,896 |
|
|
$ |
20,822 |
|
4.12 |
% |
|
$ |
1,872,871 |
|
|
$ |
19,428 |
|
4.17 |
% |
|
$ |
1,601,906 |
|
|
$ |
14,473 |
|
3.58 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
490,450 |
|
|
|
|
|
|
$ |
420,885 |
|
|
|
|
|
|
$ |
448,616 |
|
|
|
|
|
|
Other liabilities |
|
31,788 |
|
|
|
|
|
|
|
32,727 |
|
|
|
|
|
|
|
28,740 |
|
|
|
|
|
|
Total noninterest-bearing liabilities |
$ |
522,238 |
|
|
|
|
|
|
$ |
453,612 |
|
|
|
|
|
|
$ |
477,356 |
|
|
|
|
|
|
Stockholders’ Equity |
|
246,081 |
|
|
|
|
|
|
|
226,527 |
|
|
|
|
|
|
|
202,955 |
|
|
|
|
|
|
Total Liabilities and Stockholders’ Equity |
$ |
2,777,215 |
|
|
|
|
|
|
$ |
2,553,010 |
|
|
|
|
|
|
$ |
2,282,217 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income |
|
|
$ |
24,246 |
|
|
|
|
|
$ |
21,579 |
|
|
|
|
|
$ |
20,731 |
|
|
| Net interest spread(2) |
|
|
|
|
2.66 |
% |
|
|
|
|
|
2.59 |
% |
|
|
|
|
|
2.84 |
% |
| Net interest margin(3) |
|
|
|
|
3.65 |
% |
|
|
|
|
|
3.56 |
% |
|
|
|
|
|
3.78 |
% |
| Net interest margin -
FTE(4)(5) |
|
|
|
|
3.66 |
% |
|
|
|
|
|
3.57 |
% |
|
|
|
|
|
3.79 |
% |
| Cost of funds(6) |
|
|
|
|
3.31 |
% |
|
|
|
|
|
3.41 |
% |
|
|
|
|
|
2.80 |
% |
| Cost of interest-bearing
deposits |
|
|
|
|
4.03 |
% |
|
|
|
|
|
4.07 |
% |
|
|
|
|
|
3.43 |
% |
| Cost of total deposits |
|
|
|
|
3.19 |
% |
|
|
|
|
|
3.27 |
% |
|
|
|
|
|
2.63 |
% |
(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 30,2024 |
|
September 30,2023 |
|
AverageBalance |
|
Interest |
|
Yield/Rate |
|
AverageBalance |
|
Interest |
|
Yield/Rate |
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned income(1) |
$ |
2,013,157 |
|
|
$ |
107,739 |
|
7.15 |
% |
|
$ |
1,676,134 |
|
|
$ |
83,049 |
|
6.62 |
% |
| Taxable securities |
|
168,661 |
|
|
|
6,225 |
|
4.93 |
% |
|
|
149,058 |
|
|
|
4,819 |
|
4.32 |
% |
| Nontaxable securities |
|
45,833 |
|
|
|
704 |
|
2.05 |
% |
|
|
47,947 |
|
|
|
747 |
|
2.08 |
% |
| Other interest-earnings
assets |
|
247,035 |
|
|
|
10,143 |
|
5.48 |
% |
|
|
199,379 |
|
|
|
7,473 |
|
5.01 |
% |
|
Total interest-earning assets |
$ |
2,474,686 |
|
|
$ |
124,811 |
|
6.74 |
% |
|
$ |
2,072,518 |
|
|
$ |
96,088 |
|
6.20 |
% |
|
Allowance for credit losses |
|
(25,638 |
) |
|
|
|
|
|
|
(20,750 |
) |
|
|
|
|
|
Noninterest-earning assets |
|
144,127 |
|
|
|
|
|
|
|
129,083 |
|
|
|
|
|
|
Total Assets |
$ |
2,593,175 |
|
|
|
|
|
|
$ |
2,180,851 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction accounts |
|
88,980 |
|
|
|
78 |
|
0.12 |
% |
|
|
91,602 |
|
|
|
59 |
|
0.09 |
% |
|
Savings and money market accounts |
|
958,625 |
|
|
|
28,296 |
|
3.94 |
% |
|
|
839,827 |
|
|
|
19,679 |
|
3.13 |
% |
|
Time deposits |
|
698,815 |
|
|
|
24,033 |
|
4.59 |
% |
|
|
464,100 |
|
|
|
11,760 |
|
3.39 |
% |
|
FHLB advances |
|
45,840 |
|
|
|
1,706 |
|
4.97 |
% |
|
|
35,703 |
|
|
|
1,202 |
|
4.50 |
% |
|
Other borrowings |
|
96,130 |
|
|
|
4,034 |
|
5.60 |
% |
|
|
86,453 |
|
|
|
3,679 |
|
5.69 |
% |
|
Total interest-bearing liabilities |
$ |
1,888,390 |
|
|
$ |
58,147 |
|
4.11 |
% |
|
$ |
1,517,685 |
|
|
$ |
36,379 |
|
3.20 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
442,667 |
|
|
|
|
|
|
$ |
442,149 |
|
|
|
|
|
|
Other liabilities |
|
31,319 |
|
|
|
|
|
|
|
26,587 |
|
|
|
|
|
|
Total noninterest-bearing liabilities |
$ |
473,986 |
|
|
|
|
|
|
$ |
468,736 |
|
|
|
|
|
|
Stockholders’ Equity |
|
230,799 |
|
|
|
|
|
|
|
194,430 |
|
|
|
|
|
|
Total Liabilities and Stockholders’ Equity |
$ |
2,593,175 |
|
|
|
|
|
|
$ |
2,180,851 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Net interest income |
|
|
$ |
66,664 |
|
|
|
|
|
$ |
59,709 |
|
|
| Net interest spread(2) |
|
|
|
|
2.63 |
% |
|
|
|
|
|
3.00 |
% |
| Net interest margin(3) |
|
|
|
|
3.60 |
% |
|
|
|
|
|
3.85 |
% |
| Net interest margin -
FTE(4)(5) |
|
|
|
|
3.61 |
% |
|
|
|
|
|
3.87 |
% |
| Cost of funds(6) |
|
|
|
|
3.33 |
% |
|
|
|
|
|
2.48 |
% |
| Cost of interest-bearing
deposits |
|
|
|
|
4.01 |
% |
|
|
|
|
|
3.02 |
% |
| Cost of total deposits |
|
|
|
|
3.20 |
% |
|
|
|
|
|
2.29 |
% |
(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 30,2024 |
|
June 30,2024 |
|
December 31,2023 |
|
September 30,2023 |
|
Amount |
|
% of gross |
|
Amount |
|
% of gross |
|
Amount |
|
% of gross |
|
Amount |
|
% of gross |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Real estate mortgages: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and development |
$ |
245,275 |
|
|
11.1 |
% |
|
$ |
242,573 |
|
|
12.0 |
% |
|
$ |
242,960 |
|
|
12.9 |
% |
|
$ |
229,188 |
|
|
12.9 |
% |
|
Residential |
|
293,150 |
|
|
13.3 |
% |
|
|
249,498 |
|
|
12.3 |
% |
|
|
224,603 |
|
|
11.9 |
% |
|
|
224,499 |
|
|
12.6 |
% |
|
Commercial |
|
1,344,554 |
|
|
61.0 |
% |
|
|
1,222,739 |
|
|
60.5 |
% |
|
|
1,144,867 |
|
|
60.5 |
% |
|
|
1,049,545 |
|
|
59.0 |
% |
| Commercial and industrial |
|
310,540 |
|
|
14.1 |
% |
|
|
297,501 |
|
|
14.7 |
% |
|
|
269,961 |
|
|
14.3 |
% |
|
|
268,283 |
|
|
15.0 |
% |
| Consumer and other |
|
12,228 |
|
|
0.5 |
% |
|
|
9,566 |
|
|
0.5 |
% |
|
|
8,286 |
|
|
0.4 |
% |
|
|
8,331 |
|
|
0.5 |
% |
|
Gross loans |
|
2,205,747 |
|
|
100.0 |
% |
|
|
2,021,877 |
|
|
100.0 |
% |
|
|
1,890,677 |
|
|
100.0 |
% |
|
|
1,779,846 |
|
|
100.0 |
% |
| Unearned income |
|
(6,536 |
) |
|
|
|
|
(6,443 |
) |
|
|
|
|
(6,169 |
) |
|
|
|
|
(5,698 |
) |
|
|
|
Loans, net of unearned income |
|
2,199,211 |
|
|
|
|
|
2,015,434 |
|
|
|
|
|
1,884,508 |
|
|
|
|
|
1,774,148 |
|
|
|
| Allowance for credit
losses |
|
(28,061 |
) |
|
|
|
|
(25,828 |
) |
|
|
|
|
(24,378 |
) |
|
|
|
|
(22,181 |
) |
|
|
|
Loans, net |
$ |
2,171,150 |
|
|
|
|
$ |
1,989,606 |
|
|
|
|
$ |
1,860,130 |
|
|
|
|
$ |
1,751,967 |
|
|
|
|
DEPOSIT COMPOSITION |
|
(Dollars in thousands) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
September 30,2024 |
|
June 30,2024 |
|
December 31,2023 |
|
September 30,2023 |
|
Amount |
|
% of total |
|
Amount |
|
% of total |
|
Amount |
|
% of total |
|
Amount |
|
% of total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing transaction |
$ |
546,282 |
|
22.5 |
% |
|
$ |
416,068 |
|
19.1 |
% |
|
$ |
437,959 |
|
21.7 |
% |
|
$ |
418,125 |
|
21.8 |
% |
| Interest-bearing
transaction |
|
1,124,706 |
|
46.5 |
% |
|
|
1,006,687 |
|
46.3 |
% |
|
|
946,347 |
|
46.9 |
% |
|
|
934,383 |
|
48.8 |
% |
| Savings |
|
53,565 |
|
2.2 |
% |
|
|
32,527 |
|
1.5 |
% |
|
|
35,412 |
|
1.7 |
% |
|
|
38,518 |
|
2.0 |
% |
| Time deposits, $250,000 and
under |
|
558,600 |
|
23.1 |
% |
|
|
612,299 |
|
28.1 |
% |
|
|
500,406 |
|
24.8 |
% |
|
|
436,613 |
|
22.8 |
% |
| Time deposits, over
$250,000 |
|
137,393 |
|
5.7 |
% |
|
|
108,097 |
|
5.0 |
% |
|
|
98,065 |
|
4.9 |
% |
|
|
88,762 |
|
4.6 |
% |
|
Total deposits |
$ |
2,420,546 |
|
100.0 |
% |
|
$ |
2,175,678 |
|
100.0 |
% |
|
$ |
2,018,189 |
|
100.0 |
% |
|
$ |
1,916,401 |
|
100.0 |
% |
|
Nonperforming Assets |
|
(Dollars in thousands) |
| |
|
|
|
|
|
|
|
| |
September 30,2024 |
|
June 30,2024 |
|
December 31,2023 |
|
September 30,2023 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Nonaccrual loans |
$ |
7,803 |
|
|
$ |
3,784 |
|
|
$ |
1,017 |
|
|
$ |
1,082 |
|
| Past due loans 90 days or more
and still accruing interest |
|
65 |
|
|
|
— |
|
|
|
160 |
|
|
|
— |
|
|
Total nonperforming loans |
|
7,868 |
|
|
|
3,784 |
|
|
|
1,177 |
|
|
|
1,082 |
|
| OREO |
|
33 |
|
|
|
33 |
|
|
|
33 |
|
|
|
2,903 |
|
|
Total nonperforming assets |
$ |
7,901 |
|
|
$ |
3,817 |
|
|
$ |
1,210 |
|
|
$ |
3,985 |
|
| |
|
|
|
|
|
|
|
| Financial difficulty
modification loans – nonaccrual(1) |
|
622 |
|
|
|
647 |
|
|
|
907 |
|
|
|
970 |
|
| Financial difficulty
modification loans – accruing |
|
1,071 |
|
|
|
1,093 |
|
|
|
1,095 |
|
|
|
1,052 |
|
|
Financial difficulty modification loans |
$ |
1,693 |
|
|
$ |
1,740 |
|
|
$ |
2,002 |
|
|
$ |
2,022 |
|
| |
|
|
|
|
|
|
|
| Allowance for credit
losses |
$ |
28,061 |
|
|
$ |
25,828 |
|
|
$ |
24,378 |
|
|
$ |
22,181 |
|
| Loans, net of unearned income
at the end of the period |
$ |
2,199,211 |
|
|
$ |
2,015,434 |
|
|
$ |
1,884,508 |
|
|
$ |
1,774,148 |
|
| Gross loans outstanding at the
end of period |
$ |
2,205,747 |
|
|
$ |
2,021,877 |
|
|
$ |
1,890,677 |
|
|
$ |
1,779,846 |
|
| Total assets |
$ |
2,841,440 |
|
|
$ |
2,572,011 |
|
|
$ |
2,446,663 |
|
|
$ |
2,296,527 |
|
| Allowance for credit losses to
nonperforming loans |
|
356.65 |
% |
|
|
682.56 |
% |
|
|
2071.20 |
% |
|
|
2050.00 |
% |
| Nonperforming loans to loans,
net of unearned income |
|
0.36 |
% |
|
|
0.19 |
% |
|
|
0.06 |
% |
|
|
0.06 |
% |
| Nonperforming loans to gross
loans |
|
0.36 |
% |
|
|
0.19 |
% |
|
|
0.06 |
% |
|
|
0.06 |
% |
| Nonperforming assets to gross
loans and OREO |
|
0.36 |
% |
|
|
0.19 |
% |
|
|
0.06 |
% |
|
|
0.22 |
% |
| Nonperforming assets to total
assets |
|
0.28 |
% |
|
|
0.15 |
% |
|
|
0.05 |
% |
|
|
0.17 |
% |
| |
|
|
|
|
|
|
|
| Nonaccrual loans by
category: |
|
|
|
|
|
|
|
| Real estate mortgages: |
|
|
|
|
|
|
|
|
Construction & Development |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
Residential Mortgages |
|
522 |
|
|
|
393 |
|
|
|
252 |
|
|
|
289 |
|
|
Commercial Real Estate Mortgages |
|
2,155 |
|
|
|
2,182 |
|
|
|
765 |
|
|
|
785 |
|
| Commercial &
Industrial |
|
5,126 |
|
|
|
1,209 |
|
|
|
— |
|
|
|
8 |
|
| Consumer and other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Total |
$ |
7,803 |
|
|
$ |
3,784 |
|
|
$ |
1,017 |
|
|
$ |
1,082 |
|
(1) Financial difficulty modifications 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 30,2024 |
|
June 30,2024 |
|
September 30,2023 |
|
September 30,2024 |
|
September 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
Average loans, net of unearned income |
$ |
2,134,318 |
|
|
$ |
1,987,533 |
|
|
$ |
1,740,582 |
|
|
$ |
2,013,157 |
|
|
$ |
1,676,134 |
|
| Loans, net of unearned
income |
|
2,199,211 |
|
|
|
2,015,434 |
|
|
|
1,774,148 |
|
|
|
2,199,211 |
|
|
|
1,774,148 |
|
| Gross loans |
|
2,205,747 |
|
|
|
2,021,877 |
|
|
|
1,779,846 |
|
|
|
2,205,747 |
|
|
|
1,779,846 |
|
| Allowance for credit losses at
beginning of the period |
|
25,828 |
|
|
|
25,144 |
|
|
|
21,385 |
|
|
|
24,378 |
|
|
|
20,156 |
|
| Impact of adoption of ASC
326 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,285 |
) |
| Charge-offs: |
|
|
|
|
|
|
|
|
|
|
Construction and development |
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
3 |
|
|
Residential |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11 |
|
|
|
— |
|
|
Commercial |
|
119 |
|
|
|
11 |
|
|
|
— |
|
|
|
157 |
|
|
|
— |
|
|
Commercial and industrial |
|
384 |
|
|
|
384 |
|
|
|
— |
|
|
|
1,210 |
|
|
|
262 |
|
|
Consumer and other |
|
— |
|
|
|
10 |
|
|
|
— |
|
|
|
25 |
|
|
|
6 |
|
|
Total charge-offs |
|
503 |
|
|
|
405 |
|
|
|
3 |
|
|
|
1,403 |
|
|
|
271 |
|
| Recoveries: |
|
|
|
|
|
|
|
|
|
|
Construction and development |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Residential |
|
13 |
|
|
|
6 |
|
|
|
10 |
|
|
|
27 |
|
|
|
38 |
|
|
Commercial |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Commercial and industrial |
|
139 |
|
|
|
15 |
|
|
|
— |
|
|
|
171 |
|
|
|
14 |
|
|
Consumer and other |
|
1 |
|
|
|
1 |
|
|
|
16 |
|
|
|
3 |
|
|
|
18 |
|
|
Total recoveries |
|
153 |
|
|
|
22 |
|
|
|
26 |
|
|
|
201 |
|
|
|
70 |
|
|
Net charge-offs (recoveries) |
$ |
350 |
|
|
$ |
383 |
|
|
$ |
(23 |
) |
|
$ |
1,202 |
|
|
$ |
201 |
|
| |
|
|
|
|
|
|
|
|
|
| Provision for credit
losses |
$ |
2,583 |
|
|
$ |
1,067 |
|
|
$ |
773 |
|
|
$ |
4,885 |
|
|
$ |
3,511 |
|
| Balance at end of the
period |
$ |
28,061 |
|
|
$ |
25,828 |
|
|
$ |
22,181 |
|
|
$ |
28,061 |
|
|
$ |
22,181 |
|
| |
|
|
|
|
|
|
|
|
|
| Allowance for credit losses on
unfunded commitments at beginning of the period |
$ |
1,206 |
|
|
$ |
1,288 |
|
|
$ |
1,495 |
|
|
$ |
1,239 |
|
|
$ |
— |
|
| Impact of adoption of ASC
326 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,285 |
|
| Day 2 impact from
acquisition |
|
199 |
|
|
|
— |
|
|
|
— |
|
|
|
199 |
|
|
|
— |
|
| (Credit) provision for credit
losses on unfunded commitments |
|
— |
|
|
|
(82 |
) |
|
|
29 |
|
|
|
(33 |
) |
|
|
239 |
|
| Balance at the end of the
period |
$ |
1,405 |
|
|
$ |
1,206 |
|
|
$ |
1,524 |
|
|
$ |
1,405 |
|
|
$ |
1,524 |
|
| |
|
|
|
|
|
|
|
|
|
| Allowance to loans, net of
unearned income |
|
1.28 |
% |
|
|
1.28 |
% |
|
|
1.25 |
% |
|
|
1.28 |
% |
|
|
1.25 |
% |
| Allowance to gross loans |
|
1.27 |
% |
|
|
1.28 |
% |
|
|
1.25 |
% |
|
|
1.27 |
% |
|
|
1.25 |
% |
| Net charge-offs (recoveries)
to average loans, net of unearned income(1) |
|
0.07 |
% |
|
|
0.08 |
% |
|
(0.01) % |
|
|
0.08 |
% |
|
|
0.02 |
% |
| Provision for credit losses to
average loans, net of unearned income(1) |
|
0.48 |
% |
|
|
0.22 |
% |
|
|
0.18 |
% |
|
|
0.32 |
% |
|
|
0.28 |
% |
(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 30,2024 |
|
June 30,2024 |
|
September 30,2023 |
|
September 30,2024 |
|
September 30,2023 |
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
7,353 |
|
|
$ |
8,198 |
|
|
$ |
6,629 |
|
|
$ |
23,670 |
|
|
$ |
23,056 |
|
| Add: One-time retirement
related expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,571 |
|
| Add: Professional fees related
to ERC |
|
— |
|
|
|
— |
|
|
|
(1,243 |
) |
|
|
— |
|
|
|
— |
|
| Add: Wire fraud loss |
|
— |
|
|
|
1,155 |
|
|
|
— |
|
|
|
1,155 |
|
|
|
— |
|
| Add: Merger-related
expenses |
|
1,511 |
|
|
|
— |
|
|
|
— |
|
|
|
1,511 |
|
|
|
— |
|
| Add: Net OREO gain |
|
— |
|
|
|
(3 |
) |
|
|
(9 |
) |
|
|
(3 |
) |
|
|
(2 |
) |
| Less: Employee retention
related revenue |
|
— |
|
|
|
— |
|
|
|
(5,100 |
) |
|
|
— |
|
|
|
— |
|
| Less: Net gain (loss) on
securities |
|
75 |
|
|
|
20 |
|
|
|
(12 |
) |
|
|
83 |
|
|
|
457 |
|
| Less: Tax effect |
|
114 |
|
|
|
272 |
|
|
|
926 |
|
|
|
388 |
|
|
|
267 |
|
| Core net
income |
$ |
8,675 |
|
|
$ |
9,058 |
|
|
$ |
9,563 |
|
|
$ |
25,862 |
|
|
$ |
23,901 |
|
| Average assets |
$ |
2,777,215 |
|
|
$ |
2,553,010 |
|
|
$ |
2,282,217 |
|
|
$ |
2,593,175 |
|
|
$ |
2,180,851 |
|
| Core return on average
assets |
|
1.24 |
% |
|
|
1.43 |
% |
|
|
1.66 |
% |
|
|
1.33 |
% |
|
|
1.47 |
% |
| |
|
|
|
|
|
|
|
|
|
| Net income |
$ |
7,353 |
|
|
$ |
8,198 |
|
|
$ |
6,629 |
|
|
$ |
23,670 |
|
|
$ |
23,056 |
|
| Add: One-time retirement
related expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,571 |
|
| Add: Professional fees related
to ERC |
|
— |
|
|
|
— |
|
|
|
(1,243 |
) |
|
|
— |
|
|
|
— |
|
| Add: Wire fraud loss |
|
— |
|
|
|
1,155 |
|
|
|
— |
|
|
|
1,155 |
|
|
|
— |
|
| Add: Merger-related
expenses |
|
1,511 |
|
|
|
— |
|
|
|
— |
|
|
|
1,511 |
|
|
|
— |
|
| Add: Net OREO gain |
|
— |
|
|
|
(3 |
) |
|
|
(9 |
) |
|
|
(3 |
) |
|
|
(2 |
) |
| Add: Provision |
|
2,583 |
|
|
|
1,067 |
|
|
|
773 |
|
|
|
4,885 |
|
|
|
3,511 |
|
| Less: Employee retention
related revenue |
|
— |
|
|
|
— |
|
|
|
(5,100 |
) |
|
|
— |
|
|
|
— |
|
| Less: Net gain (loss) on
securities |
|
75 |
|
|
|
20 |
|
|
|
(12 |
) |
|
|
83 |
|
|
|
457 |
|
| Add: Income taxes |
|
2,380 |
|
|
|
2,271 |
|
|
|
1,866 |
|
|
|
7,029 |
|
|
|
6,738 |
|
| Pretax pre-provision
core net income |
$ |
13,752 |
|
|
$ |
12,668 |
|
|
$ |
13,128 |
|
|
$ |
38,164 |
|
|
$ |
34,417 |
|
| Average assets |
$ |
2,777,215 |
|
|
$ |
2,553,010 |
|
|
$ |
2,282,217 |
|
|
$ |
2,593,175 |
|
|
$ |
2,180,851 |
|
| Pretax pre-provision
core return on average assets |
|
1.97 |
% |
|
|
2.00 |
% |
|
|
2.28 |
% |
|
|
1.97 |
% |
|
|
2.11 |
% |
| |
|
|
|
|
|
|
|
|
|
| Net interest income |
$ |
24,246 |
|
|
$ |
21,579 |
|
|
$ |
20,731 |
|
|
$ |
66,664 |
|
|
$ |
59,709 |
|
| Add: Fully-taxable equivalent
adjustments(1) |
|
75 |
|
|
|
73 |
|
|
|
70 |
|
|
|
222 |
|
|
|
213 |
|
| Net interest income -
FTE |
$ |
24,321 |
|
|
$ |
21,652 |
|
|
$ |
20,801 |
|
|
$ |
66,886 |
|
|
$ |
59,922 |
|
| |
|
|
|
|
|
|
|
|
|
| Net interest margin |
|
3.65 |
% |
|
|
3.56 |
% |
|
|
3.78 |
% |
|
|
3.60 |
% |
|
|
3.85 |
% |
| Effect of fully-taxable
equivalent adjustments(1) |
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.02 |
% |
| Net interest margin -
FTE |
|
3.66 |
% |
|
|
3.57 |
% |
|
|
3.79 |
% |
|
|
3.61 |
% |
|
|
3.87 |
% |
| |
|
|
|
|
|
|
|
|
|
| Total stockholders'
equity |
$ |
271,370 |
|
|
$ |
230,581 |
|
|
$ |
201,924 |
|
|
$ |
271,370 |
|
|
$ |
201,924 |
|
| Less: Intangible assets |
|
40,318 |
|
|
|
17,597 |
|
|
|
17,843 |
|
|
|
40,318 |
|
|
|
17,843 |
|
| Tangible common
equity |
$ |
231,052 |
|
|
$ |
212,984 |
|
|
$ |
184,081 |
|
|
$ |
231,052 |
|
|
$ |
184,081 |
|
| |
|
|
|
|
|
|
|
|
|
|
(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 30,2024 |
|
June 30,2024 |
|
September 30,2023 |
|
September 30,2024 |
|
September 30,2023 |
| |
|
|
|
|
|
|
|
|
|
| Core net income |
$ |
8,675 |
|
|
$ |
9,058 |
|
|
$ |
9,563 |
|
|
$ |
25,862 |
|
|
$ |
23,901 |
|
| Diluted weighted average
shares outstanding |
|
9,725,884 |
|
|
|
9,070,568 |
|
|
|
9,040,687 |
|
|
|
9,297,778 |
|
|
|
9,016,603 |
|
| Diluted core earnings
per share |
$ |
0.89 |
|
|
$ |
1.00 |
|
|
$ |
1.06 |
|
|
$ |
2.78 |
|
|
$ |
2.65 |
|
| |
|
|
|
|
|
|
|
|
|
| Common shares outstanding at
year or period end |
|
9,882,350 |
|
|
|
8,908,130 |
|
|
|
8,834,168 |
|
|
|
9,882,350 |
|
|
|
8,834,168 |
|
| Tangible book value
per share |
$ |
23.38 |
|
|
$ |
23.91 |
|
|
$ |
20.84 |
|
|
$ |
23.38 |
|
|
$ |
20.84 |
|
| |
|
|
|
|
|
|
|
|
|
| Total assets at end of
period |
$ |
2,841,440 |
|
|
$ |
2,572,011 |
|
|
$ |
2,296,527 |
|
|
$ |
2,841,440 |
|
|
$ |
2,296,527 |
|
| Less: Intangible assets |
|
40,318 |
|
|
|
17,597 |
|
|
|
17,843 |
|
|
|
40,318 |
|
|
|
17,843 |
|
| Adjusted assets at end of
period |
$ |
2,801,122 |
|
|
$ |
2,554,414 |
|
|
$ |
2,278,684 |
|
|
$ |
2,801,122 |
|
|
$ |
2,278,684 |
|
| Tangible common equity
to tangible assets |
|
8.25 |
% |
|
|
8.34 |
% |
|
|
8.08 |
% |
|
|
8.25 |
% |
|
|
8.08 |
% |
| |
|
|
|
|
|
|
|
|
|
| Total average shareholders
equity |
$ |
246,081 |
|
|
$ |
226,527 |
|
|
$ |
202,955 |
|
|
$ |
230,799 |
|
|
$ |
194,430 |
|
| Less: Average intangible
assets |
|
26,884 |
|
|
|
17,646 |
|
|
|
17,893 |
|
|
|
20,776 |
|
|
|
17,973 |
|
| Average tangible common
equity |
$ |
219,197 |
|
|
$ |
208,881 |
|
|
$ |
185,062 |
|
|
$ |
210,023 |
|
|
$ |
176,457 |
|
| Net income to common
shareholders |
$ |
7,353 |
|
|
$ |
8,198 |
|
|
$ |
6,629 |
|
|
$ |
23,670 |
|
|
$ |
23,056 |
|
| Return on average
tangible common equity |
|
13.35 |
% |
|
|
15.79 |
% |
|
|
14.21 |
% |
|
|
15.05 |
% |
|
|
17.47 |
% |
| Average tangible common
equity |
$ |
219,197 |
|
|
$ |
208,881 |
|
|
$ |
185,062 |
|
|
$ |
210,023 |
|
|
$ |
176,457 |
|
| Core net income |
$ |
8,675 |
|
|
$ |
9,058 |
|
|
$ |
9,563 |
|
|
$ |
25,862 |
|
|
$ |
23,901 |
|
| Core return on average
tangible common equity |
|
15.74 |
% |
|
|
17.44 |
% |
|
|
20.50 |
% |
|
|
16.45 |
% |
|
|
18.11 |
% |
| |
|
|
|
|
|
|
|
|
|
| Net interest income |
$ |
24,246 |
|
|
$ |
21,579 |
|
|
$ |
20,731 |
|
|
$ |
66,664 |
|
|
$ |
59,709 |
|
| Add: Noninterest income |
|
1,757 |
|
|
|
1,368 |
|
|
|
(2,894 |
) |
|
|
4,393 |
|
|
|
5,755 |
|
| Less: Employee retention
related revenue |
|
— |
|
|
|
— |
|
|
|
(5,100 |
) |
|
|
— |
|
|
|
— |
|
| Less: Net gain (loss) on
securities |
|
75 |
|
|
|
20 |
|
|
|
(12 |
) |
|
|
83 |
|
|
|
457 |
|
| Operating revenue |
$ |
25,928 |
|
|
$ |
22,927 |
|
|
$ |
22,949 |
|
|
$ |
70,974 |
|
|
$ |
65,007 |
|
| |
|
|
|
|
|
|
|
|
|
| Expenses: |
|
|
|
|
|
|
|
|
|
| Total noninterest expense |
$ |
13,687 |
|
|
$ |
11,411 |
|
|
$ |
8,569 |
|
|
$ |
35,473 |
|
|
$ |
32,159 |
|
| Less: One-time retirement
related expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,571 |
|
| Less: Professional fees
related to ERC |
|
— |
|
|
|
— |
|
|
|
(1,243 |
) |
|
|
— |
|
|
|
— |
|
| Less: Wire fraud loss |
|
— |
|
|
|
1,155 |
|
|
|
— |
|
|
|
1,155 |
|
|
|
— |
|
| Less: Merger-related
expenses |
|
1,511 |
|
|
|
— |
|
|
|
— |
|
|
|
1,511 |
|
|
|
— |
|
| Less: Net OREO gain |
|
— |
|
|
|
(3 |
) |
|
|
(9 |
) |
|
|
(3 |
) |
|
|
(2 |
) |
| Adjusted noninterest
expenses |
$ |
12,176 |
|
|
$ |
10,259 |
|
|
$ |
9,821 |
|
|
$ |
32,810 |
|
|
$ |
30,590 |
|
| Core efficiency
ratio |
|
46.96 |
% |
|
|
44.75 |
% |
|
|
42.79 |
% |
|
|
46.23 |
% |
|
|
47.06 |
% |
Southern States Bancshares (NASDAQ:SSBK)
Gráfica de Acción Histórica
De Nov 2024 a Dic 2024
Southern States Bancshares (NASDAQ:SSBK)
Gráfica de Acción Histórica
De Dic 2023 a Dic 2024
