First Quarter 2023 Performance and Operational Highlights
- Net income of $7.7 million, or $0.85 per diluted share
- Core net income(1) of $7.3 million, or $0.80 per diluted share(1)
- Net interest income of $19.5 million, a decrease of $1.3 million from the prior quarter
- Net interest margin ("NIM") of 4.07%, down 31 basis points from the prior quarter
- NIM of 4.09% on a fully-taxable equivalent basis ("NIM - FTE")(1)
- Return on average assets ("ROAA") of 1.51%; return on average stockholders' equity ("ROAE") of 16.67%; and return on average tangible common equity ("ROATCE")(1) of 18.45%
- Core ROAA(1) of 1.44%; and core ROATCE(1) of 17.51%
- Efficiency ratio of 48.79%
- Linked-quarter loan growth was 14.9% annualized
- Linked-quarter deposit growth was 16.2% annualized
- Repurchased $575,000 of common stock, representing 24,000 shares at an average price of $23.95 during the quarter
(1) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
ANNISTON, Ala., April 24, 2023 (GLOBE NEWSWIRE) -- 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 $7.7 million, or $0.85 diluted earnings per share, for the first quarter of 2023. This compares to net income of $10.6 million, or $1.18 diluted earnings per share, for the fourth quarter of 2022, and net income of $4.6 million, or $0.50 diluted earnings per share, for the first quarter of 2022. The Company reported core net income of $7.3 million, or $0.80 diluted core earnings per share, for the first quarter of 2023. This compares to core net income of $8.1 million, or $0.90 diluted core earnings per share, for the fourth quarter of 2022, and core net income of $4.8 million, or $0.53 diluted core earnings per share, for the first quarter of 2022 (see "Reconciliation of Non-GAAP Financial Measures").
CEO Commentary
| Stephen Whatley, Chairman and Chief Executive Officer of Southern States, said, "Despite the recent volatility in our industry, we continued to drive strong earnings, growing both loans and deposits and improving upon our already strong capital levels. After several quarters of Federal Reserve interest rate hikes, combined with increased competition for funding, our deposit betas accelerated in the first quarter and we continued to see a moderate deposit mix shift from noninterest-bearing to interest-bearing deposits, impacting our net interest margin. We are confident in our ability to strategically manage our deposit balances, which we believe reflects the diversity and durability of our franchise.'' | ||||
| Mr. Whatley continued, "We also continue to prudently meet the needs of clients across our vibrant and resilient footprint. We grew loans during the quarter by 14.9% annualized, while maintaining excellent credit quality. We are focused on selectively growing our loan portfolio while carefully managing asset quality and exercising disciplined expense management as we have throughout multiple economic cycles.'' | ||||
| Mr. Whatley concluded, "We are of course closely monitoring the fallout from recent regional bank failures. But it is important to emphasize that Southern States is focused on traditional banking services. The banks that failed had unique business models with idiosyncratic challenges that are unrelated to Southern States. We are confident our robust balance sheet and conservative underwriting principles position us well to navigate the current environment while delivering strong returns for our shareholders." |
Net Interest Income and Net Interest Margin
| Three Months Ended | % Change March 31, 2023 vs. | ||||||||||||||||
| March 31, 2023 | December 31, 2022 | March 31, 2022 | December 31, 2022 | March 31, 2022 | |||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Average interest-earning assets | $ | 1,947,957 | $ | 1,893,069 | $ | 1,684,298 | 2.9 | % | 15.7 | % | |||||||
| Net interest income | $ | 19,546 | $ | 20,884 | $ | 14,654 | (6.4 | )% | 33.4 | % | |||||||
| Net interest margin | 4.07 | % | 4.38 | % | 3.53 | % | (31 | ) bps | 54 | bps | |||||||
Net interest income for the first quarter of 2023 was $19.5 million, a decrease of 6.4% from $20.9 million for the fourth quarter of 2022. The decrease was primarily attributable to the higher cost of deposits and other borrowings, which more than offset an increase in the yield on interest-earnings assets.
Relative to the first quarter of 2022, net interest income increased $4.9 million, or 33.4%. The increase was partially the result of improvement in the yield on interest-earning assets, which outpaced the rise in deposit costs and other borrowings. In addition, we benefited from the significant organic growth over the last year.
Net interest margin for the first quarter of 2023 was 4.07%, compared to 4.38% for the fourth quarter of 2022. The decrease was primarily due to higher interest rates paid on deposits, which outpaced the increase in yields on interest-earning assets.
Relative to the first quarter of 2022, net interest margin increased from 3.53%. The increase was primarily due to a rapid increase in interest rates, which produced higher yields on interest-earning assets.
Noninterest Income
| Three Months Ended | % Change March 31, 2023 vs. | ||||||||||||||||
| March 31, 2023 | December 31, 2022 | March 31, 2022 | December 31, 2022 | March 31, 2022 | |||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Service charges on deposit accounts | $ | 450 | $ | 431 | $ | 445 | 4.4 | % | 1.1 | % | |||||||
| Swap fees | (4 | ) | 2 | 15 | (300.0 | )% | (126.7 | )% | |||||||||
| SBA/USDA fees | 134 | 70 | 388 | 91.4 | % | (65.5 | )% | ||||||||||
| Mortgage origination fees | 100 | 98 | 286 | 2.0 | % | (65.0 | )% | ||||||||||
| Net gain (loss) on securities | 514 | (86 | ) | (361 | ) | (697.7 | )% | (242.4 | )% | ||||||||
| Other operating income | 592 | 4,088 | 560 | (85.5 | )% | 5.7 | % | ||||||||||
| Total noninterest income | $ | 1,786 | $ | 4,603 | $ | 1,333 | (61.2 | )% | 34.0 | % | |||||||
Noninterest income for the first quarter of 2023 was $1.8 million, a decrease of 61.2% from $4.6 million for the fourth quarter of 2022. The fourth quarter 2022 results included a $2.6 million gain on the sale of two branches and a bank owned life insurance ("BOLI") benefit claim of $774,000. The first quarter decrease was partially offset by a realized net gain on securities during the quarter, compared to a net loss on securities during the previous quarter.
Relative to the first quarter of 2022, noninterest income increased 34.0% from $1.3 million. The increase was primarily due to a realized net gain on securities during the first quarter of 2023 compared to a net loss on securities during the first quarter of 2022. This increase was partially offset by a decrease in SBA/USDA fees and mortgage fees during the first quarter of 2023.
Noninterest Expense
| Three Months Ended | % Change March 31, 2023 vs. | |||||||||||||
| March 31, 2023 | December 31, 2022 | March 31, 2022 | December 31, 2022 | March 31, 2022 | ||||||||||
| (Dollars in thousands) | ||||||||||||||
| Salaries and employee benefits | $ | 6,311 | $ | 6,738 | $ | 5,725 | (6.3 | )% | 10.2 | % | ||||
| Equipment and occupancy expenses | 683 | 730 | 705 | (6.4 | )% | (3.1 | )% | |||||||
| Data processing fees | 593 | 711 | 564 | (16.6 | )% | 5.1 | % | |||||||
| Regulatory assessments | 342 | 165 | 263 | 107.3 | % | 30.0 | % | |||||||
| Other operating expenses | 2,229 | 2,092 | 2,033 | 6.5 | % | 9.6 | % | |||||||
| Total noninterest expenses | $ | 10,158 | $ | 10,436 | $ | 9,290 | (2.7 | )% | 9.3 | % | ||||
Noninterest expense for the first quarter of 2023 was $10.2 million, a decrease of 2.7% from $10.4 million for the fourth quarter of 2022. The decrease was primarily attributable to a decrease in salaries and benefits as a result of expenses related to the issuance of restricted stock units in a deferred compensation plan during the fourth quarter of 2022 and partially offset by various increases in other operating expenses, none of which were individually significant. The fourth quarter 2022 results also included waivers of regulatory assessments from State regulators.
Relative to the first quarter of 2022, noninterest expense increased 9.3% from $9.3 million. The increase was primarily attributable to an increase in salaries and benefits as a result of various equity, retirement and incentive plans.
Loans and Credit Quality
| Three Months Ended | % Change March 31, 2023 vs. | ||||||||||||||||
| March 31, 2023 | December 31, 2022 | March 31, 2022 | December 31, 2022 | March 31, 2022 | |||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Core loans | $ | 1,650,929 | $ | 1,592,707 | $ | 1,313,173 | 3.7 | % | 25.7 | % | |||||||
| PPP loans | - | - | 893 | - | % | NM | |||||||||||
| Gross loans | 1,650,929 | 1,592,707 | 1,314,066 | 3.7 | % | 25.6 | % | ||||||||||
| Unearned income | (5,614 | ) | (5,543 | ) | (3,996 | ) | 1.3 | % | 40.5 | % | |||||||
| Loans, net of unearned income ("Loans") | $ | 1,645,315 | $ | 1,587,164 | $ | 1,310,070 | 3.7 | % | 25.6 | % | |||||||
| Average loans, net of unearned ("Average loans") | $ | 1,609,564 | $ | 1,563,255 | $ | 1,278,413 | 3.0 | % | 25.9 | % | |||||||
| Nonperforming loans ("NPL") | $ | 1,646 | $ | 2,245 | $ | 3,246 | (26.7 | )% | (49.3 | )% | |||||||
| Provision for loan losses | $ | 1,181 | $ | 1,938 | $ | 700 | (39.1 | )% | 68.7 | % | |||||||
| Allowance for loan losses ("ALLL") | $ | 21,140 | $ | 20,156 | $ | 15,492 | 4.9 | % | 36.5 | % | |||||||
| Net charge-offs (recoveries) | $ | 197 | $ | 205 | $ | 52 | (3.9 | )% | 278.8 | % | |||||||
| NPL to gross loans | 0.10 | % | 0.14 | % | 0.25 | % | |||||||||||
| Net charge-offs (recoveries) to average loans(1) | 0.05 | % | 0.05 | % | 0.02 | % | |||||||||||
| ALLL to loans | 1.28 | % | 1.27 | % | 1.18 | % | |||||||||||
| (1) Ratio is annualized. | |||||||||||||||||
| NM = Not meaningful | |||||||||||||||||
Loans, net of unearned income, were $1.6 billion at March 31, 2023, up $58.2 million from December 31, 2022 and up $335.2 million from March 31, 2022. The linked-quarter and year-over-year increases in loans were primarily attributable to new business growth across our footprint.
Nonperforming loans totaled $1.6 million, or 0.10% of gross loans, at March 31, 2023, compared with $2.2 million, or 0.14% of gross loans, at December 31, 2022, and $3.2 million, or 0.25% of gross loans, at March 31, 2022. The $599,000 net decrease in nonperforming loans in the first quarter was primarily attributable to three loans that were returned to accruing status or charged-off. The $1.6 million net decrease in nonperforming loans from March 31, 2022 was primarily attributable to a significant commercial real estate loan being moved back to accruing status.
The Company recorded a provision for loan losses of $1.2 million for the first quarter of 2023, compared to $1.9 million for the fourth quarter of 2022. The lower provision was primarily due to changes in our qualitative economic factors and less loan growth for the the quarter.
Net charge-offs for the first quarter of 2023 were $197,000, or 0.05% of average loans, compared to net charge-offs of $205,000, or 0.05% of average loans, for the fourth quarter of 2022, and net charge-offs of $52,000, or 0.02% of average loans, for the first quarter of 2022.
The Company's allowance for loan losses was 1.28% of total loans and 1284.33% of nonperforming loans at March 31, 2023, compared with 1.27% of total loans and 897.82% of nonperforming loans at December 31, 2022.
Deposits
| Three Months Ended | % Change March 31, 2023 vs. | |||||||||||||
| March 31, 2023 | December 31, 2022 | March 31, 2022 | December 31, 2022 | March 31, 2022 | ||||||||||
| (Dollars in thousands) | ||||||||||||||
| Noninterest-bearing deposits | $ | 433,832 | $ | 460,977 | $ | 515,110 | (5.9 | )% | (15.8 | )% | ||||
| Interest-bearing deposits | 1,355,659 | 1,259,766 | 1,026,729 | 7.6 | % | 32.0 | % | |||||||
| Total deposits | $ | 1,789,491 | $ | 1,720,743 | $ | 1,541,839 | 4.0 | % | 16.1 | % | ||||
Total deposits were $1.8 billion at March 31, 2023, up from $1.7 billion at December 31, 2022 and $1.5 billion at March 31, 2022. The $68.7 million increase in total deposits in the first quarter was due to an increase of $95.9 million in interest-bearing account balances, partially offset by a $27.1 million decrease in noninterest-bearing deposits. Included in the increase was $35.1 million in brokered deposits.
Capital
| March 31, 2023 | December 31, 2022 | March 31, 2022 | |||||||||||||||
| Company | Bank | Company | Bank | Company | Bank | ||||||||||||
| Tier 1 capital ratio to average assets | 8.89 | % | 12.19 | % | 8.82 | % | 12.17 | % | 8.75 | % | 10.88 | % | |||||
| Risk-based capital ratios: | |||||||||||||||||
| Common equity tier 1 ("CET1") capital ratio | 9.00 | % | 12.34 | % | 8.86 | % | 12.21 | % | 9.90 | % | 12.32 | % | |||||
| Tier 1 capital ratio | 9.00 | % | 12.34 | % | 8.86 | % | 12.21 | % | 9.90 | % | 12.32 | % | |||||
| Total capital ratio | 14.41 | % | 13.38 | % | 14.34 | % | 13.24 | % | 13.97 | % | 13.31 | % | |||||
As of March 31, 2023, total stockholders' equity was $189.7 million, up from $181.7 million at December 31, 2022. The increase of $7.9 million was substantially due to strong earnings growth.
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 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, the inflationary environment, the COVID-19 pandemic and governmental responses. 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 | |||||||||||
| (In thousands, except share and per share amounts) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, 2023 | December 31, 2022 | March 31, 2022 | |||||||||
| Results of Operations | |||||||||||
| Interest income | $ | 28,699 | $ | 26,706 | $ | 15,872 | |||||
| Interest expense | 9,153 | 5,822 | 1,218 | ||||||||
| Net interest income | 19,546 | 20,884 | 14,654 | ||||||||
| Provision for loan losses | 1,181 | 1,938 | 700 | ||||||||
| Net interest income after provision | 18,365 | 18,946 | 13,954 | ||||||||
| Noninterest income | 1,786 | 4,603 | 1,333 | ||||||||
| Noninterest expense | 10,158 | 10,436 | 9,290 | ||||||||
| Income tax expense(1) | 2,322 | 2,521 | 1,440 | ||||||||
| Net income | $ | 7,671 | $ | 10,592 | $ | 4,557 | |||||
| Core net income(2) | $ | 7,280 | $ | 8,081 | $ | 4,824 | |||||
| Share and Per Share Data | |||||||||||
| Shares issued and outstanding | 8,723,763 | 8,706,920 | 8,749,878 | ||||||||
| Weighted average shares outstanding: | |||||||||||
| Basic | 8,762,450 | 8,707,026 | 8,935,384 | ||||||||
| Diluted | 9,044,490 | 8,932,585 | 9,065,364 | ||||||||
| Earnings per share: | |||||||||||
| Basic | $ | 0.87 | $ | 1.22 | $ | 0.51 | |||||
| Diluted | $ | 0.85 | $ | 1.18 | $ | 0.50 | |||||
| Core - diluted(2) | $ | 0.80 | $ | 0.90 | $ | 0.53 | |||||
| Book value per share | $ | 21.74 | $ | 20.87 | $ | 19.34 | |||||
| Tangible book value per share(2) | $ | 19.68 | $ | 18.79 | $ | 17.25 | |||||
| Cash dividends declared | $ | 0.09 | $ | 0.09 | $ | 0.09 | |||||
| Performance and Financial Ratios | |||||||||||
| ROAA | 1.51 | % | 2.11 | % | 1.03 | % | |||||
| ROAE | 16.67 | % | 23.77 | % | 10.43 | % | |||||
| Core ROAA(2) | 1.44 | % | 1.61 | % | 1.09 | % | |||||
| ROATCE(2) | 18.45 | % | 26.49 | % | 11.63 | % | |||||
| Core ROATCE(2) | 17.51 | % | 20.21 | % | 12.31 | % | |||||
| NIM | 4.07 | % | 4.38 | % | 3.53 | % | |||||
| NIM - FTE(2) | 4.09 | % | 4.39 | % | 3.55 | % | |||||
| Net interest spread | 3.33 | % | 3.84 | % | 3.36 | % | |||||
| Yield on loans | 6.38 | % | 6.05 | % | 4.68 | % | |||||
| Yield on interest-earning assets | 5.97 | % | 5.60 | % | 3.82 | % | |||||
| Cost of interest-bearing liabilities | 2.64 | % | 1.76 | % | 0.46 | % | |||||
| Cost of funds(3) | 2.01 | % | 1.29 | % | 0.31 | % | |||||
| Cost of interest-bearing deposits | 2.42 | % | 1.52 | % | 0.35 | % | |||||
| Cost of total deposits | 1.81 | % | 1.09 | % | 0.23 | % | |||||
| Noninterest deposits to total deposits | 24.24 | % | 26.79 | % | 33.41 | % | |||||
| Total loans to total deposits | 91.94 | % | 92.24 | % | 84.97 | % | |||||
| Efficiency ratio | 48.79 | % | 40.81 | % | 56.83 | % | |||||
| Core efficiency ratio(2) | 48.79 | % | 45.98 | % | 56.83 | % | |||||
(1) Three months ended December 31, 2022 included a $540,000 investment tax credit.
(2) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
(3) Includes total interest-bearing liabilities and noninterest deposits.
| SELECT FINANCIAL DATA | |||||||||||
| (In thousands) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, 2023 | December 31, 2022 | March 31, 2022 | |||||||||
| Financial Condition (ending) | |||||||||||
| Total loans | $ | 1,645,315 | $ | 1,587,164 | $ | 1,310,070 | |||||
| Total securities | 183,197 | 175,196 | 170,694 | ||||||||
| Total assets | 2,134,337 | 2,045,204 | 1,798,834 | ||||||||
| Total noninterest bearing deposits | 433,832 | 460,977 | 515,110 | ||||||||
| Total deposits | 1,789,491 | 1,720,743 | 1,541,839 | ||||||||
| Total borrowings | 131,372 | 117,295 | 73,104 | ||||||||
| Total liabilities | 1,944,674 | 1,863,485 | 1,629,645 | ||||||||
| Total shareholders' equity | $ | 189,663 | $ | 181,719 | $ | 169,189 | |||||
| Financial Condition (average) | |||||||||||
| Total loans | $ | 1,609,564 | $ | 1,563,255 | $ | 1,278,413 | |||||
| Total securities | 192,348 | 188,765 | 161,683 | ||||||||
| Other interest-earning assets | 146,045 | 141,049 | 244,202 | ||||||||
| Total interest-bearing assets | 1,947,957 | 1,893,069 | 1,684,298 | ||||||||
| Total assets | 2,057,005 | 1,994,087 | 1,787,015 | ||||||||
| Noninterest-bearing deposits | 438,735 | 477,301 | 514,456 | ||||||||
| Interest-bearing deposits | 1,300,632 | 1,216,492 | 1,023,898 | ||||||||
| Total deposits | 1,739,367 | 1,693,793 | 1,538,354 | ||||||||
| Total borrowings | 104,901 | 99,111 | 58,874 | ||||||||
| Total interest-bearing liabilities | 1,405,533 | 1,315,603 | 1,082,772 | ||||||||
| Total shareholders' equity | $ | 186,639 | $ | 176,769 | $ | 177,244 | |||||
| Asset Quality | |||||||||||
| Nonperforming loans | $ | 1,646 | $ | 2,245 | $ | 3,246 | |||||
| Other real estate owned ("OREO") | $ | 2,930 | $ | 2,930 | $ | 2,930 | |||||
| Nonperforming assets ("NPA") | $ | 4,576 | $ | 5,175 | $ | 6,176 | |||||
| Net charge-offs (recovery) to average loans(1) | 0.05 | % | 0.05 | % | 0.02 | % | |||||
| Provision for loan losses to average loans(1) | 0.30 | % | 0.49 | % | 0.22 | % | |||||
| ALLL to loans | 1.28 | % | 1.27 | % | 1.18 | % | |||||
| ALLL to gross loans | 1.28 | % | 1.27 | % | 1.18 | % | |||||
| ALLL to NPL | 1284.33 | % | 897.82 | % | 477.26 | % | |||||
| NPL to loans | 0.10 | % | 0.14 | % | 0.25 | % | |||||
| NPL to gross loans | 0.10 | % | 0.14 | % | 0.25 | % | |||||
| NPA to gross loans and OREO | 0.28 | % | 0.32 | % | 0.47 | % | |||||
| NPA to total assets | 0.21 | % | 0.25 | % | 0.34 | % | |||||
| Regulatory and Other Capital Ratios | |||||||||||
| Total shareholders' equity to total assets | 8.89 | % | 8.89 | % | 9.41 | % | |||||
| Tangible common equity to tangible assets(2) | 8.11 | % | 8.07 | % | 8.47 | % | |||||
| Tier 1 capital ratio to average assets | 8.89 | % | 8.82 | % | 8.75 | % | |||||
| Risk-based capital ratios: | |||||||||||
| CET1 capital ratio | 9.00 | % | 8.86 | % | 9.90 | % | |||||
| Tier 1 capital ratio | 9.00 | % | 8.86 | % | 9.90 | % | |||||
| Total capital ratio | 14.41 | % | 14.34 | % | 13.97 | % | |||||
(1) Ratio is annualized.
(2) 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 | |||||||||||
| (In thousands) | |||||||||||
| March 31, 2023 (Unaudited) | December 31, 2022 (Audited) | March 31, 2022 (Unaudited) | |||||||||
| Assets | |||||||||||
| Cash and due from banks | $ | 17,245 | $ | 15,260 | $ | 22,851 | |||||
| Interest-bearing deposits in banks | 99,541 | 90,198 | 111,951 | ||||||||
| Federal funds sold | 76,010 | 63,041 | 74,022 | ||||||||
| Total cash and cash equivalents | 192,796 | 168,499 | 208,824 | ||||||||
| Securities available for sale, at fair value | 163,550 | 155,544 | 151,027 | ||||||||
| Securities held to maturity, at amortized cost | 19,647 | 19,652 | 19,667 | ||||||||
| Other equity securities, at fair value | 3,806 | 4,444 | 8,937 | ||||||||
| Restricted equity securities, at cost | 3,862 | 3,134 | 2,825 | ||||||||
| Loans held for sale | 2,376 | 1,047 | 2,509 | ||||||||
| Loans, net of unearned income | 1,645,315 | 1,587,164 | 1,310,070 | ||||||||
| Less allowance for loan losses | 21,140 | 20,156 | 15,492 | ||||||||
| Loans, net | 1,624,175 | 1,567,008 | 1,294,578 | ||||||||
| Premises and equipment, net | 27,098 | 27,345 | 28,065 | ||||||||
| Accrued interest receivable | 7,077 | 6,963 | 4,427 | ||||||||
| Bank owned life insurance | 29,350 | 29,186 | 29,343 | ||||||||
| Annuities | 15,489 | 15,478 | 15,523 | ||||||||
| Foreclosed assets | 2,930 | 2,930 | 2,930 | ||||||||
| Goodwill | 16,862 | 16,862 | 16,862 | ||||||||
| Core deposit intangible | 1,144 | 1,226 | 1,434 | ||||||||
| Other assets | 24,175 | 25,886 | 11,883 | ||||||||
| Total assets | $ | 2,134,337 | $ | 2,045,204 | $ | 1,798,834 | |||||
| Liabilities and Stockholders' Equity | |||||||||||
| Liabilities: | |||||||||||
| Deposits: | |||||||||||
| Noninterest-bearing | $ | 433,832 | $ | 460,977 | $ | 515,110 | |||||
| Interest-bearing | 1,355,659 | 1,259,766 | 1,026,729 | ||||||||
| Total deposits | 1,789,491 | 1,720,743 | 1,541,839 | ||||||||
| Other borrowings | (16 | ) | (19 | ) | - | ||||||
| FHLB advances | 45,000 | 31,000 | 25,950 | ||||||||
| Subordinated notes | 86,388 | 86,314 | 47,154 | ||||||||
| Accrued interest payable | 844 | 584 | 107 | ||||||||
| Other liabilities | 22,967 | 24,863 | 14,595 | ||||||||
| Total liabilities | 1,944,674 | 1,863,485 | 1,629,645 | ||||||||
| Stockholders' equity: | |||||||||||
| Common stock | 43,798 | 43,714 | 43,749 | ||||||||
| Capital surplus | 77,053 | 76,785 | 76,426 | ||||||||
| Retained earnings | 80,642 | 73,764 | 53,604 | ||||||||
| Accumulated other comprehensive loss | (9,846 | ) | (11,048 | ) | (3,755 | ) | |||||
| Unvested restricted stock | (965 | ) | (477 | ) | (835 | ) | |||||
| Vested restricted stock units | (1,019 | ) | (1,019 | ) | - | ||||||
| Total stockholders' equity | 189,663 | 181,719 | 169,189 | ||||||||
| Total liabilities and stockholders' equity | $ | 2,134,337 | $ | 2,045,204 | $ | 1,798,834 | |||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
| (In thousands, except per share amounts) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, 2023 | December 31, 2022 | March 31, 2022 | |||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
| Interest income: | |||||||||||
| Loans, including fees | $ | 25,335 | $ | 23,853 | $ | 14,766 | |||||
| Taxable securities | 1,383 | 1,206 | 619 | ||||||||
| Nontaxable securities | 291 | 322 | 299 | ||||||||
| Other interest and dividends | 1,690 | 1,325 | 188 | ||||||||
| Total interest income | 28,699 | 26,706 | 15,872 | ||||||||
| Interest expense: | |||||||||||
| Deposits | 7,768 | 4,655 | 873 | ||||||||
| Other borrowings | 1,385 | 1,167 | 345 | ||||||||
| Total interest expense | 9,153 | 5,822 | 1,218 | ||||||||
| Net interest income | 19,546 | 20,884 | 14,654 | ||||||||
| Provision for loan losses | 1,181 | 1,938 | 700 | ||||||||
| Net interest income after provision for loan losses | 18,365 | 18,946 | 13,954 | ||||||||
| Noninterest income: | |||||||||||
| Service charges on deposit accounts | 450 | 431 | 445 | ||||||||
| Swap fees | (4 | ) | 2 | 15 | |||||||
| SBA/USDA fees | 134 | 70 | 388 | ||||||||
| Mortgage origination fees | 100 | 98 | 286 | ||||||||
| Net gain (loss) on securities | 514 | (86 | ) | (361 | ) | ||||||
| Other operating income | 592 | 4,088 | 560 | ||||||||
| Total noninterest income | 1,786 | 4,603 | 1,333 | ||||||||
| Noninterest expenses: | |||||||||||
| Salaries and employee benefits | 6,311 | 6,738 | 5,725 | ||||||||
| Equipment and occupancy expenses | 683 | 730 | 705 | ||||||||
| Data processing fees | 593 | 711 | 564 | ||||||||
| Regulatory assessments | 342 | 165 | 263 | ||||||||
| Other operating expenses | 2,229 | 2,092 | 2,033 | ||||||||
| Total noninterest expenses | 10,158 | 10,436 | 9,290 | ||||||||
| Income before income taxes | 9,993 | 13,113 | 5,997 | ||||||||
| Income tax expense | 2,322 | 2,521 | 1,440 | ||||||||
| Net income | $ | 7,671 | $ | 10,592 | $ | 4,557 | |||||
| Basic earnings per share | $ | 0.87 | $ | 1.22 | $ | 0.51 | |||||
| Diluted earnings per share | $ | 0.85 | $ | 1.18 | $ | 0.50 | |||||
| AVERAGE BALANCE SHEET AND NET INTEREST MARGIN | |||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| March 31, 2023 | December 31, 2022 | March 31, 2022 | |||||||||||||||||||||||||||
| Average Balance | Interest | Yield/Rate | Average Balance | Interest | Yield/Rate | Average Balance | Interest | Yield/Rate | |||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||||
| Loans, net of unearned income(1) | $ | 1,609,564 | $ | 25,335 | 6.38 | % | $ | 1,563,255 | $ | 23,853 | 6.05 | % | $ | 1,278,413 | $ | 14,766 | 4.68 | % | |||||||||||
| Taxable securities | 139,516 | 1,383 | 4.02 | % | 132,222 | 1,206 | 3.62 | % | 106,820 | 619 | 2.35 | % | |||||||||||||||||
| Nontaxable securities | 52,832 | 291 | 2.24 | % | 56,543 | 322 | 2.26 | % | 54,863 | 299 | 2.21 | % | |||||||||||||||||
| Other interest-earnings assets | 146,045 | 1,690 | 4.69 | % | 141,049 | 1,325 | 3.73 | % | 244,202 | 188 | 0.31 | % | |||||||||||||||||
| Total interest-earning assets | $ | 1,947,957 | $ | 28,699 | 5.97 | % | $ | 1,893,069 | $ | 26,706 | 5.60 | % | $ | 1,684,298 | $ | 15,872 | 3.82 | % | |||||||||||
| Allowance for loan losses | (20,493 | ) | (19,374 | ) | (15,041 | ) | |||||||||||||||||||||||
| Noninterest-earning assets | 129,541 | 120,392 | 117,758 | ||||||||||||||||||||||||||
| Total Assets | $ | 2,057,005 | $ | 1,994,087 | $ | 1,787,015 | |||||||||||||||||||||||
| Liabilities and Stockholders' Equity: | |||||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||
| Interest-bearing transaction accounts | 93,951 | 20 | 0.08 | % | 98,978 | 22 | 0.09 | % | 110,983 | 26 | 0.09 | % | |||||||||||||||||
| Savings and money market accounts | 806,001 | 5,040 | 2.54 | % | 794,692 | 3,126 | 1.56 | % | 675,504 | 591 | 0.36 | % | |||||||||||||||||
| Time deposits | 400,680 | 2,708 | 2.74 | % | 322,822 | 1,507 | 1.85 | % | 237,411 | 256 | 0.44 | % | |||||||||||||||||
| FHLB advances | 18,578 | 159 | 3.47 | % | 22,739 | 147 | 2.56 | % | 25,950 | 22 | 0.34 | % | |||||||||||||||||
| Other borrowings | 86,323 | 1,226 | 5.76 | % | 76,372 | 1,020 | 5.30 | % | 32,924 | 323 | 3.98 | % | |||||||||||||||||
| Total interest-bearing liabilities | $ | 1,405,533 | $ | 9,153 | 2.64 | % | $ | 1,315,603 | $ | 5,822 | 1.76 | % | $ | 1,082,772 | $ | 1,218 | 0.46 | % | |||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||
| Noninterest-bearing deposits | $ | 438,735 | $ | 477,301 | $ | 514,456 | |||||||||||||||||||||||
| Other liabilities | 26,098 | 24,414 | 12,543 | ||||||||||||||||||||||||||
| Total noninterest-bearing liabilities | $ | 464,833 | $ | 501,715 | $ | 526,999 | |||||||||||||||||||||||
| Stockholders' Equity | 186,639 | 176,769 | 177,244 | ||||||||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 2,057,005 | $ | 1,994,087 | $ | 1,787,015 | |||||||||||||||||||||||
| Net interest income | $ | 19,546 | $ | 20,884 | $ | 14,654 | |||||||||||||||||||||||
| Net interest spread(2) | 3.33 | % | 3.84 | % | 3.36 | % | |||||||||||||||||||||||
| Net interest margin(3) | 4.07 | % | 4.38 | % | 3.53 | % | |||||||||||||||||||||||
| Net interest margin - FTE(4)(5) | 4.09 | % | 4.39 | % | 3.55 | % | |||||||||||||||||||||||
| Cost of funds(6) | 2.01 | % | 1.29 | % | 0.31 | % | |||||||||||||||||||||||
| Cost of interest-bearing deposits | 2.42 | % | 1.52 | % | 0.35 | % | |||||||||||||||||||||||
| Cost of total deposits | 1.81 | % | 1.09 | % | 0.23 | % | |||||||||||||||||||||||
| (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 for the three months ended March 31, 2023 and December 31, 2022 and a 23.5% tax rate for the three months ended March 31, 2022. |
| (5) | Refer to "Reconciliation of Non-GAAP Financial Measures". |
| (6) | Includes total interest-bearing liabilities and noninterest deposits. |
| LOAN COMPOSITION | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| March 31, 2023 | December 31, 2022 | March 31, 2022 | ||||||||||||||||||
| Amount | % of gross | Amount | % of gross | Amount | % of gross | |||||||||||||||
| Real estate mortgages: | ||||||||||||||||||||
| Construction and development | $ | 227,560 | 13.8 | % | $ | 255,736 | 16.1 | % | $ | 165,400 | 12.6 | % | ||||||||
| Residential | 196,923 | 11.9 | % | 167,891 | 10.5 | % | 154,143 | 11.7 | % | |||||||||||
| Commercial | 948,251 | 57.5 | % | 904,872 | 56.8 | % | 765,685 | 58.3 | % | |||||||||||
| Commercial and industrial | 270,825 | 16.4 | % | 256,553 | 16.1 | % | 218,868 | 16.6 | % | |||||||||||
| PPP loans | - | - | % | - | - | % | 893 | 0.1 | % | |||||||||||
| Consumer and other | 7,370 | 0.4 | % | 7,655 | 0.5 | % | 9,077 | 0.7 | % | |||||||||||
| Gross loans | 1,650,929 | 100.0 | % | 1,592,707 | 100.0 | % | 1,314,066 | 100.0 | % | |||||||||||
| Unearned income | (5,614 | ) | (5,543 | ) | (3,996 | ) | ||||||||||||||
| Loans, net of unearned income | 1,645,315 | 1,587,164 | 1,310,070 | |||||||||||||||||
| Allowance for loan losses | (21,140 | ) | (20,156 | ) | (15,492 | ) | ||||||||||||||
| Loans, net | $ | 1,624,175 | $ | 1,567,008 | $ | 1,294,578 | ||||||||||||||
| DEPOSIT COMPOSITION | |||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| March 31, 2023 | December 31, 2022 | March 31, 2022 | |||||||||||||||
| Amount | % of total | Amount | % of total | Amount | % of total | ||||||||||||
| Noninterest-bearing transaction | $ | 433,833 | 24.2 | % | $ | 460,977 | 26.8 | % | $ | 515,110 | 33.4 | % | |||||
| Interest-bearing transaction | 877,166 | 49.0 | % | 837,127 | 48.6 | % | 749,119 | 48.6 | % | ||||||||
| Savings | 47,742 | 2.7 | % | 49,235 | 2.9 | % | 62,462 | 4.1 | % | ||||||||
| Time deposits, $250,000 and under | 366,271 | 20.5 | % | 307,145 | 17.8 | % | 189,172 | 12.2 | % | ||||||||
| Time deposits, over $250,000 | 64,479 | 3.6 | % | 66,259 | 3.9 | % | 25,976 | 1.7 | % | ||||||||
| Total deposits | $ | 1,789,491 | 100.0 | % | $ | 1,720,743 | 100.0 | % | $ | 1,541,839 | 100.0 | % | |||||
| Nonperfoming Assets | |||||||||||
| (Dollars in thousands) | |||||||||||
| March 31, 2023 | December 31, 2022 | March 31, 2022 | |||||||||
| Nonaccrual loans | $ | 1,646 | $ | 2,245 | $ | 3,246 | |||||
| Past due loans 90 days or more and still accruing interest | - | - | - | ||||||||
| Total nonperforming loans | 1,646 | 2,245 | 3,246 | ||||||||
| OREO | 2,930 | 2,930 | 2,930 | ||||||||
| Total nonperforming assets | $ | 4,576 | $ | 5,175 | $ | 6,176 | |||||
| Troubled debt restructured loans - nonaccrual(1) | 805 | 832 | 904 | ||||||||
| Troubled debt restructured loans - accruing | 1,272 | 1,292 | 1,058 | ||||||||
| Total troubled debt restructured loans | $ | 2,077 | $ | 2,124 | $ | 1,962 | |||||
| Allowance for loan losses | $ | 21,140 | $ | 20,156 | $ | 15,492 | |||||
| Loans, net of unearned income at the end of the period | $ | 1,645,315 | $ | 1,587,164 | $ | 1,310,070 | |||||
| Gross loans outstanding at the end of period | $ | 1,650,929 | $ | 1,592,707 | $ | 1,314,066 | |||||
| Total assets | $ | 2,134,337 | $ | 2,045,204 | $ | 1,798,834 | |||||
| Allowance for loan losses to nonperforming loans | 1284.33 | % | 897.82 | % | 477.26 | % | |||||
| Nonperforming loans to loans, net of unearned income | 0.10 | % | 0.14 | % | 0.25 | % | |||||
| Nonperforming loans to gross loans | 0.10 | % | 0.14 | % | 0.25 | % | |||||
| Nonperforming assets to gross loans and OREO | 0.28 | % | 0.32 | % | 0.47 | % | |||||
| Nonperforming assets to total assets | 0.21 | % | 0.25 | % | 0.34 | % | |||||
| Nonaccrual loans by category: | |||||||||||
| Real estate mortgages: | |||||||||||
| Construction & Development | $ | 64 | $ | 67 | $ | 76 | |||||
| Residential Mortgages | 267 | 565 | 510 | ||||||||
| Commercial Real Estate Mortgages | 1,263 | 1,278 | 2,388 | ||||||||
| Commercial & Industrial | 51 | 312 | 269 | ||||||||
| Consumer and other | 1 | 23 | 3 | ||||||||
| Total | $ | 1,646 | $ | 2,245 | $ | 3,246 | |||||
(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 Loan Losses | |||||||||||
| (Dollars in thousands) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, 2023 | December 31, 2022 | March 31, 2022 | |||||||||
| Average loans, net of unearned income | $ | 1,609,564 | $ | 1,563,255 | $ | 1,278,413 | |||||
| Loans, net of unearned income | $ | 1,645,315 | $ | 1,587,164 | $ | 1,310,070 | |||||
| Gross loans | $ | 1,650,929 | $ | 1,592,707 | $ | 1,314,066 | |||||
| Allowance for loan losses at beginning of the period | $ | 20,156 | $ | 18,423 | $ | 14,844 | |||||
| Charge-offs: | |||||||||||
| Construction and development | - | - | 66 | ||||||||
| Residential | - | - | - | ||||||||
| Commercial | - | - | - | ||||||||
| Commercial and industrial | 218 | 210 | - | ||||||||
| Consumer and other | 6 | 18 | 6 | ||||||||
| Total charge-offs | 224 | 228 | 72 | ||||||||
| Recoveries: | |||||||||||
| Construction and development | - | - | - | ||||||||
| Residential | 11 | 4 | 17 | ||||||||
| Commercial | - | - | - | ||||||||
| Commercial and industrial | 14 | 1 | - | ||||||||
| Consumer and other | 2 | 18 | 3 | ||||||||
| Total recoveries | 27 | 23 | 20 | ||||||||
| Net charge-offs (recoveries) | $ | 197 | $ | 205 | $ | 52 | |||||
| Provision for loan losses | $ | 1,181 | $ | 1,938 | $ | 700 | |||||
| Balance at end of period | $ | 21,140 | $ | 20,156 | $ | 15,492 | |||||
| Allowance to loans, net of unearned income | 1.28 | % | 1.27 | % | 1.18 | % | |||||
| Allowance to gross loans | 1.28 | % | 1.27 | % | 1.18 | % | |||||
| Net charge-offs (recoveries) to average loans, net of unearned income(1) | 0.05 | % | 0.05 | % | 0.02 | % | |||||
| Provision for loan losses to average loans, net of unearned income(1) | 0.30 | % | 0.49 | % | 0.22 | % | |||||
(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 | |||||||||||
| March 31, 2023 | December 31, 2022 | March 31, 2022 | |||||||||
| Net income | $ | 7,671 | $ | 10,592 | $ | 4,557 | |||||
| Less: Net gain on sale of branches | - | 2,372 | - | ||||||||
| Less: BOLI benefit claim | - | 774 | - | ||||||||
| Less: Gain (loss) on securities | 514 | (86 | ) | (361 | ) | ||||||
| Less: Tax effect | (123 | ) | (549 | ) | 94 | ||||||
| Core net income | $ | 7,280 | $ | 8,081 | $ | 4,824 | |||||
| Average assets | $ | 2,057,005 | $ | 1,994,087 | $ | 1,787,015 | |||||
| Core return on average assets | 1.44 | % | 1.61 | % | 1.09 | % | |||||
| Net income | $ | 7,671 | $ | 10,592 | $ | 4,557 | |||||
| Add: Provision | 1,181 | 1,938 | 700 | ||||||||
| Less: Net gain on sale of branches | - | 2,372 | - | ||||||||
| Less: BOLI benefit claim | - | 774 | - | ||||||||
| Less: Gain (loss) on securities | 514 | (86 | ) | (361 | ) | ||||||
| Add: Income taxes | 2,322 | 2,521 | 1,440 | ||||||||
| Pretax pre-provision core net income | $ | 10,660 | $ | 11,991 | $ | 7,058 | |||||
| Average assets | $ | 2,057,005 | $ | 1,994,087 | $ | 1,787,015 | |||||
| Pretax pre-provision core return on average assets | 2.10 | % | 2.39 | % | 1.60 | % | |||||
| Net interest income | $ | 19,546 | $ | 20,884 | $ | 14,654 | |||||
| Add: Fully-taxable equivalent adjustments(1) | 85 | 84 | 78 | ||||||||
| Net interest income - FTE | $ | 19,631 | $ | 20,968 | $ | 14,732 | |||||
| Net interest margin | 4.07 | % | 4.38 | % | 3.53 | % | |||||
| Effect of fully-taxable equivalent adjustments(1) | 0.02 | % | 0.01 | % | 0.02 | % | |||||
| Net interest margin - FTE | 4.09 | % | 4.39 | % | 3.55 | % | |||||
| Total stockholders' equity | $ | 189,663 | $ | 181,719 | $ | 169,189 | |||||
| Less: Intangible assets | 18,006 | 18,088 | 18,296 | ||||||||
| Tangible common equity | $ | 171,657 | $ | 163,631 | $ | 150,893 | |||||
| (1) Assumes a 24.0% tax rate for the three months ended March 31, 2023 and December 31, 2022 and a 23.5% tax rate for the three months ended March 31, 2022. | |||||||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||||
| (Dollars in thousands, except share and per share amounts | |||||||||||
| Three Months Ended | |||||||||||
| March 31, 2023 | December 31, 2022 | March 31, 2022 | |||||||||
| Core net income | $ | 7,280 | $ | 8,081 | $ | 4,824 | |||||
| Diluted weighted average shares outstanding | 9,044,490 | 8,932,585 | 9,065,364 | ||||||||
| Diluted core earnings per share | $ | 0.80 | $ | 0.90 | $ | 0.53 | |||||
| Common shares outstanding at year or period end | 8,723,763 | 8,706,920 | 8,749,878 | ||||||||
| Tangible book value per share | $ | 19.68 | $ | 18.79 | $ | 17.25 | |||||
| Total assets at end of period | $ | 2,134,337 | $ | 2,045,204 | $ | 1,798,834 | |||||
| Less: Intangible assets | 18,006 | 18,088 | 18,296 | ||||||||
| Adjusted assets at end of period | $ | 2,116,331 | $ | 2,027,116 | $ | 1,780,538 | |||||
| Tangible common equity to tangible assets | 8.11 | % | 8.07 | % | 8.47 | % | |||||
| Total average shareholders equity | $ | 186,639 | $ | 176,769 | $ | 177,244 | |||||
| Less: Average intangible assets | 18,055 | 18,134 | 18,337 | ||||||||
| Average tangible common equity | $ | 168,584 | $ | 158,635 | $ | 158,907 | |||||
| Net income to common shareholders | $ | 7,671 | $ | 10,592 | $ | 4,557 | |||||
| Return on average tangible common equity | 18.45 | % | 26.49 | % | 11.63 | % | |||||
| Average tangible common equity | $ | 168,584 | $ | 158,635 | $ | 158,907 | |||||
| Core net income | $ | 7,280 | $ | 8,081 | $ | 4,824 | |||||
| Core return on average tangible common equity | 17.51 | % | 20.21 | % | 12.31 | % | |||||
| Net interest income | $ | 19,546 | $ | 20,884 | $ | 14,654 | |||||
| Add: Noninterest income | 1,786 | 4,603 | 1,333 | ||||||||
| Less: Gain on sale of branches | - | 2,600 | - | ||||||||
| Less: BOLI benefit claim | - | 774 | - | ||||||||
| Less: Gain (loss) on securities | 514 | (86 | ) | (361 | ) | ||||||
| Operating revenue | $ | 20,818 | $ | 22,199 | $ | 16,348 | |||||
| Expenses: | |||||||||||
| Total noninterest expense | $ | 10,158 | $ | 10,436 | $ | 9,290 | |||||
| Less: Loss on sale of branches | - | 228 | - | ||||||||
| Adjusted noninterest expenses | $ | 10,158 | $ | 10,208 | $ | 9,290 | |||||
| Core efficiency ratio | 48.79 | % | 45.98 | % | 56.83 | % | |||||
