First Quarter 2024 Performance and Operational Highlights
- Net income of $8.1 million, or $0.90 per diluted share
- Core net income(1) of $8.1 million, or $0.90 per diluted share(1)
- Net interest income of $20.8 million, an increase of $435,000 from the prior quarter
- Net interest margin ("NIM") of 3.59%, down 10 basis points from the prior quarter
- NIM of 3.60% on a fully-taxable equivalent basis ("NIM - FTE")(1)
- Return on average assets ("ROAA") of 1.33%; return on average stockholders' equity ("ROAE") of 14.87%; and return on average tangible common equity ("ROATCE")(1) of 16.17%
- Core ROAA(1) of 1.34%; and core ROATCE(1) of 16.19%
- Efficiency ratio of 46.90%
- Linked-quarter loan growth of 17.2% annualized
- Linked-quarter total deposits grew 18.3% annualized
- Linked-quarter total deposits, excluding brokered deposits, grew 7.1% annualized
(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 22, 2024 (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 $8.1 million, or $0.90 diluted earnings per share, for the first quarter of 2024. This compares to net income of $8.9 million, or $0.99 diluted earnings per share, for the fourth quarter of 2023, and net income of $7.7 million, or $0.85 diluted earnings per share, for the first quarter of 2023. The Company reported core net income of $8.1 million, or $0.90 diluted core earnings per share, for the first quarter of 2024. This compares to core net income of $7.3 million, or $0.81 diluted core earnings per share, for the fourth quarter of 2023, and core net income of $7.3 million, or $0.80 diluted core earnings per share, for the first quarter of 2023 (see "Reconciliation of Non-GAAP Financial Measures").
| CEO Commentary |
| Mark Chambers, Chief Executive Officer and President of Southern States, said, "We built on our momentum in 2023 and continued strong lending activity in the first quarter, selectively identifying compelling opportunities while carefully managing risk and maintaining solid credit quality." | ||||
| "We grew our total loans by 17.2% annualized from the prior quarter, while our non-performing loans as a percentage of the total portfolio was just 0.18%. Our portfolio is in excellent shape. In addition to loan growth, we grew total non-brokered deposits by 7.1% annualized, and net interest income expanded by 2.1% as we benefited from higher yields on earning assets. While funding expenses remained elevated amid the higher-for-longer interest rate environment, resulting in continued pressure on our net interest margin, the rate of cost increases leveled off during the first quarter, and our NIM remained healthy at 3.59%." | ||||
| "With liquidity and capital levels, Southern States is well well-positioned to drive further growth across our footprint, which includes economically dynamic markets throughout Alabama and Georgia. Importantly, our previously announced acquisition of CBB Bancorp, the holding company for Century Bank of Georgia, will further fortify our deposit base and provide an excellent platform for loan growth in new markets. It gives us added confidence in our ability to deliver long-term value for our shareholders." |
| Net Interest Income and Net Interest Margin |
| Three Months Ended | % Change March 31, 2024 vs. | ||||||||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | December 31, 2023 | March 31, 2023 | |||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Average interest-earning assets | $ | 2,336,369 | $ | 2,195,381 | $ | 1,947,957 | 6.4 | % | 19.9 | % | |||||||
| Net interest income | $ | 20,839 | $ | 20,404 | $ | 19,546 | 2.1 | % | 6.6 | % | |||||||
| Net interest margin | 3.59 | % | 3.69 | % | 4.07 | % | (10)bps | (48)bps | |||||||||
Net interest income for the first quarter of 2024 was $20.8 million, an increase of 2.1% from $20.4 million for the fourth quarter of 2023. The increase was primarily driven by a higher yield on interest-earning assets resulting from growth at higher interest rates, which more than offset a higher cost of interest-bearing deposits due to both higher interest rates and competition.
Relative to the first quarter of 2023, net interest income increased $1.3 million, or 6.6%. The increase was substantially due to growth, which offset the decline in net interest margin.
Net interest margin for the first quarter of 2024 was 3.59%, compared to 3.69% for the fourth quarter of 2023. The decrease was primarily due to an increase in the cost of interest-bearing deposits, which was greater than the increase in the yield on interest-earning assets.
Relative to the first quarter of 2023, net interest margin decreased from 4.07%. The decrease was primarily the result of the rapid increase in interest rates, which accelerated the cost of interest-bearing liabilities at a greater pace than the yield received on interest-earning assets. A shift from noninterest-bearing deposits into interest-bearing deposits also had a negative impact on net interest margin.
| Noninterest Income |
| Three Months Ended | % Change March 31, 2024 vs. | |||||||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | December 31, 2023 | March 31, 2023 | ||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| Service charges on deposit accounts | $ | 463 | $ | 441 | $ | 450 | 5.0 | % | 2.9 | % | ||||||
| Swap fees | 15 | 70 | (4 | ) | (78.6)% | (475.0)% | ||||||||||
| SBA/USDA fees | 64 | 70 | 134 | (8.6)% | (52.2)% | |||||||||||
| Mortgage origination fees | 96 | 87 | 100 | 10.3 | % | (4.0)% | ||||||||||
| Net (loss) gain on securities | (12 | ) | 98 | 514 | (112.2)% | (102.3)% | ||||||||||
| Other operating income | 642 | 2,352 | 592 | (72.7)% | 8.4 | % | ||||||||||
| Total noninterest income | $ | 1,268 | $ | 3,118 | $ | 1,786 | (59.3)% | (29.0)% | ||||||||
Noninterest income for the first quarter of 2024 was $1.3 million, a decrease of 59.3% from $3.1 million for the fourth quarter of 2023. The fourth quarter of 2023 included a $1.9 million fee related to the early payoff of a $12.0 million purchased loan. As this was unusually large and atypical for the Bank, it was recorded as noninterest income instead of interest income, which would have impacted the net interest margin.
Relative to the first quarter of 2023, noninterest income decreased 29.0% from $1.8 million. The decrease was primarily due to a realized net loss on securities during the first quarter of 2024 compared to a net gain on securities during the first quarter of 2023.
| Noninterest Expense |
| Three Months Ended | % Change March 31, 2024 vs. | |||||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | December 31, 2023 | March 31, 2023 | ||||||||||
| (Dollars in thousands) | ||||||||||||||
| Salaries and employee benefits | $ | 6,231 | $ | 5,739 | $ | 6,311 | 8.6 | % | (1.3)% | |||||
| Equipment and occupancy expenses | 689 | 681 | 683 | 1.2 | % | 0.9 | % | |||||||
| Data processing fees | 643 | 639 | 593 | 0.6 | % | 8.4 | % | |||||||
| Regulatory assessments | 360 | 355 | 342 | 1.4 | % | 5.3 | % | |||||||
| Other operating expenses | 2,452 | 2,303 | 2,229 | 6.5 | % | 10.0 | % | |||||||
| Total noninterest expenses | $ | 10,375 | $ | 9,717 | $ | 10,158 | 6.8 | % | 2.1 | % | ||||
Noninterest expense for the first quarter of 2024 was $10.4 million, an increase of 6.8% from $9.7 million for the fourth quarter of 2023. The increase was primarily due to an increase in salaries and benefits, substantially as a result of higher payroll taxes brought about by incentive expense paid during the first quarter of 2024. In addition, other operating expense increased primarily as a result of the recognition of a $49,000 provision for credit losses on unfunded loan commitments during the first quarter of 2024, compared to a $334,000 credit for credit losses on unfunded loan commitments during the fourth quarter of 2023. These increases were partially offset by net forgery/fraud recoveries and a decrease in legal fees incurred during the first quarter of 2024.
Relative to the first quarter of 2023, noninterest expense increased 2.1% from $10.2 million. The increase was primarily attributable to increases in other operating expense, including marginal increases in insured deposit program expense, provision for credit losses on unfunded commitments and expense associated with a new market tax credit.
| Loans and Credit Quality |
| Three Months Ended | % Change March 31, 2024 vs. | ||||||||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | December 31, 2023 | March 31, 2023 | |||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Gross loans | $ | 1,971,396 | $ | 1,890,677 | $ | 1,650,929 | 4.3 | % | 19.4 | % | |||||||
| Unearned income | (6,247 | ) | (6,169 | ) | (5,614 | ) | 1.3 | % | 11.3 | % | |||||||
| Loans, net of unearned income ("Loans") | 1,965,149 | 1,884,508 | 1,645,315 | 4.3 | % | 19.4 | % | ||||||||||
| Average loans, net of unearned ("Average loans") | $ | 1,916,288 | $ | 1,814,484 | $ | 1,609,564 | 5.6 | % | 19.1 | % | |||||||
| Nonperforming loans ("NPL") | $ | 3,446 | $ | 1,177 | $ | 1,646 | 192.8 | % | 109.4 | % | |||||||
| Provision for credit losses | $ | 1,236 | $ | 2,579 | $ | 1,181 | (52.1)% | 4.7 | % | ||||||||
| Allowance for credit losses ("ACL") | $ | 25,144 | $ | 24,378 | $ | 19,855 | 3.1 | % | 26.6 | % | |||||||
| Net charge-offs | $ | 470 | $ | 382 | $ | 197 | 23.0 | % | 138.6 | % | |||||||
| NPL to gross loans | 0.17 | % | 0.06 | % | 0.10 | % | |||||||||||
| Net charge-offs to average loans(1) | 0.10 | % | 0.08 | % | 0.05 | % | |||||||||||
| ACL to loans | 1.28 | % | 1.29 | % | 1.21 | % | |||||||||||
| (1) Ratio is annualized. | |||||||||||||||||
Loans, net of unearned income, were $2.0 billion at March 31, 2024, up $80.6 million from December 31, 2023 and up $319.8 million from March 31, 2023. The linked-quarter and year-over-year increases in loans were primarily attributable to new business growth across our footprint.
Nonperforming loans totaled $3.4 million, or 0.17% of gross loans, at March 31, 2024, compared with $1.2 million, or 0.06% of gross loans, at December 31, 2023, and $1.6 million, or 0.10% of gross loans, at March 31, 2023. The $2.3 million net increase in nonperforming loans in the first quarter was primarily attributable to one significant commercial real estate loan and one significant commercial and industrial loan each being placed on nonaccrual status. The $1.8 million net increase in nonperforming loans from March 31, 2023 was primarily attributable to the two significant aforementioned loans. These increases were partially offset by one significant commercial real estate loan being paid off.
The Company recorded a provision for credit losses of $1.2 million for the first quarter of 2024, compared to $2.6 million for the fourth quarter of 2023. Provision in the first quarter of 2024 was based on loan growth, qualitative economic factors and individually analyzed loans.
Net charge-offs for the first quarter of 2024 were $470,000, or 0.10% of average loans on an annualized basis, compared to net charge-offs of $382,000, or 0.08% of average loans on an annualized basis, for the fourth quarter of 2023, and net charge-offs of $197,000, or 0.05% of average loans on an annualized basis, for the first quarter of 2023.
The Company's allowance for credit losses was 1.28% of total loans and 729.66% of nonperforming loans at March 31, 2024, compared with 1.29% of total loans and 2071.20% of nonperforming loans at December 31, 2023. Allowance for credit losses on unfunded commitments was $1.3 million at March 31, 2024.
| Deposits |
| Three Months Ended | % Change March 31, 2024 vs. | ||||||||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | December 31, 2023 | March 31, 2023 | |||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Noninterest-bearing deposits | $ | 416,704 | $ | 437,959 | $ | 433,833 | (4.9)% | (3.9)% | |||||||||
| Interest-bearing deposits | 1,693,094 | 1,580,230 | 1,355,658 | 7.1 | % | 24.9 | % | ||||||||||
| Total deposits | $ | 2,109,798 | $ | 2,018,189 | $ | 1,789,491 | 4.5 | % | 17.9 | % | |||||||
| Uninsured deposits | $ | 610,122 | $ | 615,651 | $ | 567,709 | (0.9)% | 7.5 | % | ||||||||
| Uninsured deposits to total deposits | 28.92 | % | 30.51 | % | 31.72 | % | |||||||||||
| Noninterest deposits to total deposits | 19.75 | % | 21.70 | % | 24.24 | % | |||||||||||
Total deposits were $2.1 billion at March 31, 2024, up from $2.0 billion at December 31, 2023 and $1.8 billion at March 31, 2023. The $91.6 million increase in total deposits in the first quarter was primarily due to an increase of $112.9 million in interest-bearing deposits, which includes a $60.2 million increase in brokered deposits, partially offset by a $21.3 million decrease in noninterest-bearing deposits. Total brokered deposits were $291.0 million at March 31, 2024.
| Capital |
| March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||||||||
| Company | Bank | Company | Bank | Company | Bank | ||||||||||||
| Tier 1 capital ratio to average assets | 8.79 | % | 11.67 | % | 8.99 | % | 12.01 | % | 8.89 | % | 12.19 | % | |||||
| Risk-based capital ratios: | |||||||||||||||||
| Common equity tier 1 ("CET1") capital ratio | 9.39 | % | 12.47 | % | 9.20 | % | 12.30 | % | 9.00 | % | 12.34 | % | |||||
| Tier 1 capital ratio | 9.39 | % | 12.47 | % | 9.20 | % | 12.30 | % | 9.00 | % | 12.34 | % | |||||
| Total capital ratio | 14.42 | % | 13.63 | % | 14.29 | % | 13.45 | % | 14.41 | % | 13.38 | % | |||||
As of March 31, 2024, total stockholders' equity was $222.9 million, up from $215.0 million at December 31, 2023. The increase of $7.9 million was substantially due to 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 and the inflationary environment. Although we believe that the expectations reflected in such forward-looking statements are reasonable as of the dates made, we cannot give any assurance that such expectations will prove correct and actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 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 | Kevin Dobbs | |||
| (205) 820-8065 | (310) 622-8245 | |||
| ljoyce@ssbank.bank | ssbankir@finprofiles.com |
| SELECT FINANCIAL DATA | |||||||||||
| (Dollars in thousands, except share and per share amounts) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||
| Results of Operations | |||||||||||
| Interest income | $ | 38,736 | $ | 36,172 | $ | 28,699 | |||||
| Interest expense | 17,897 | 15,768 | 9,153 | ||||||||
| Net interest income | 20,839 | 20,404 | 19,546 | ||||||||
| Provision for credit losses | 1,236 | 2,579 | 1,181 | ||||||||
| Net interest income after provision | 19,603 | 17,825 | 18,365 | ||||||||
| Noninterest income | 1,268 | 3,118 | 1,786 | ||||||||
| Noninterest expense | 10,375 | 9,717 | 10,158 | ||||||||
| Income tax expense | 2,377 | 2,330 | 2,322 | ||||||||
| Net income | $ | 8,119 | $ | 8,896 | $ | 7,671 | |||||
| Core net income(1) | $ | 8,128 | $ | 7,289 | $ | 7,280 | |||||
| Share and Per Share Data | |||||||||||
| Shares issued and outstanding | 8,894,794 | 8,841,349 | 8,723,763 | ||||||||
| Weighted average shares outstanding: | |||||||||||
| Basic | 8,913,477 | 8,864,734 | 8,762,450 | ||||||||
| Diluted | 9,043,122 | 9,021,358 | 9,044,490 | ||||||||
| Earnings per share: | |||||||||||
| Basic | $ | 0.91 | $ | 1.00 | $ | 0.87 | |||||
| Diluted | 0.90 | 0.99 | 0.85 | ||||||||
| Core - diluted(1) | 0.90 | 0.81 | 0.80 | ||||||||
| Book value per share | 25.06 | 24.31 | 21.74 | ||||||||
| Tangible book value per share(1) | 23.07 | 22.30 | 19.68 | ||||||||
| Cash dividends per common share | 0.09 | 0.09 | 0.09 | ||||||||
| Performance and Financial Ratios | |||||||||||
| ROAA | 1.33 | % | 1.53 | % | 1.51 | % | |||||
| ROAE | 14.87 | % | 17.02 | % | 16.67 | % | |||||
| Core ROAA(1) | 1.34 | % | 1.26 | % | 1.44 | % | |||||
| ROATCE(1) | 16.17 | % | 18.62 | % | 18.45 | % | |||||
| Core ROATCE(1) | 16.19 | % | 15.26 | % | 17.51 | % | |||||
| NIM | 3.59 | % | 3.69 | % | 4.07 | % | |||||
| NIM - FTE(1) | 3.60 | % | 3.71 | % | 4.09 | % | |||||
| Net interest spread | 2.63 | % | 2.73 | % | 3.33 | % | |||||
| Yield on loans | 7.06 | % | 6.91 | % | 6.38 | % | |||||
| Yield on interest-earning assets | 6.67 | % | 6.54 | % | 5.97 | % | |||||
| Cost of interest-bearing liabilities | 4.04 | % | 3.81 | % | 2.64 | % | |||||
| Cost of funds(2) | 3.27 | % | 3.03 | % | 2.01 | % | |||||
| Cost of interest-bearing deposits | 3.92 | % | 3.66 | % | 2.42 | % | |||||
| Cost of total deposits | 3.12 | % | 2.86 | % | 1.81 | % | |||||
| Noninterest deposits to total deposits | 19.75 | % | 21.70 | % | 24.24 | % | |||||
| Core deposits to total deposits | 81.45 | % | 83.70 | % | 88.57 | % | |||||
| Uninsured deposits to total deposits | 28.92 | % | 30.51 | % | 31.72 | % | |||||
| Total loans to total deposits | 93.14 | % | 93.38 | % | 91.94 | % | |||||
| Efficiency ratio | 46.90 | % | 41.48 | % | 48.79 | % | |||||
| Core efficiency ratio(1) | 46.90 | % | 45.78 | % | 48.79 | % | |||||
(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 | |||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||
| Financial Condition (ending) | |||||||||||
| Total loans | $ | 1,965,149 | $ | 1,884,508 | $ | 1,645,315 | |||||
| Total securities | 197,006 | 198,632 | 183,197 | ||||||||
| Total assets | 2,510,975 | 2,446,663 | 2,135,622 | ||||||||
| Total noninterest bearing deposits | 416,704 | 437,959 | 433,833 | ||||||||
| Total core deposits(1) | 1,718,333 | 1,689,266 | 1,584,915 | ||||||||
| Total deposits | 2,109,798 | 2,018,189 | 1,789,491 | ||||||||
| Total borrowings | 146,773 | 183,673 | 131,372 | ||||||||
| Total liabilities | 2,288,094 | 2,231,699 | 1,945,959 | ||||||||
| Total shareholders' equity | 222,881 | 214,964 | 189,663 | ||||||||
| Financial Condition (average) | |||||||||||
| Total loans | $ | 1,916,288 | $ | 1,814,484 | $ | 1,609,564 | |||||
| Total securities | 208,954 | 209,074 | 192,348 | ||||||||
| Total other interest-earning assets | 211,127 | 171,823 | 146,045 | ||||||||
| Total interest-bearing assets | 2,336,369 | 2,195,381 | 1,947,957 | ||||||||
| Total assets | 2,447,278 | 2,303,398 | 2,057,005 | ||||||||
| Total noninterest-bearing deposits | 416,141 | 420,019 | 438,735 | ||||||||
| Total interest-bearing deposits | 1,633,307 | 1,502,348 | 1,300,632 | ||||||||
| Total deposits | 2,049,448 | 1,922,367 | 1,739,367 | ||||||||
| Total borrowings | 148,771 | 140,790 | 104,901 | ||||||||
| Total interest-bearing liabilities | 1,782,078 | 1,643,138 | 1,405,533 | ||||||||
| Total shareholders' equity | 219,622 | 207,324 | 186,639 | ||||||||
| Asset Quality | |||||||||||
| Nonperforming loans | $ | 3,446 | $ | 1,177 | $ | 1,646 | |||||
| Other real estate owned ("OREO") | $ | 33 | $ | 33 | $ | 2,930 | |||||
| Nonperforming assets ("NPA") | $ | 3,479 | $ | 1,210 | $ | 4,576 | |||||
| Net charge-offs to average loans(2) | 0.10 | % | 0.08 | % | 0.05 | % | |||||
| Provision for credit losses to average loans(2) | 0.26 | % | 0.56 | % | 0.30 | % | |||||
| ACL to loans | 1.28 | % | 1.29 | % | 1.21 | % | |||||
| ACL to gross loans | 1.28 | % | 1.29 | % | 1.20 | % | |||||
| ACL to NPL | 729.66 | % | 2071.20 | % | 1206.26 | % | |||||
| NPL to loans | 0.18 | % | 0.06 | % | 0.10 | % | |||||
| NPL to gross loans | 0.17 | % | 0.06 | % | 0.10 | % | |||||
| NPA to gross loans and OREO | 0.18 | % | 0.06 | % | 0.28 | % | |||||
| NPA to total assets | 0.14 | % | 0.05 | % | 0.21 | % | |||||
| Regulatory and Other Capital Ratios | |||||||||||
| Total shareholders' equity to total assets | 8.88 | % | 8.79 | % | 8.88 | % | |||||
| Tangible common equity to tangible assets(3) | 8.23 | % | 8.12 | % | 8.11 | % | |||||
| Tier 1 capital ratio to average assets | 8.79 | % | 8.99 | % | 8.89 | % | |||||
| Risk-based capital ratios: | |||||||||||
| CET1 capital ratio | 9.39 | % | 9.20 | % | 9.00 | % | |||||
| Tier 1 capital ratio | 9.39 | % | 9.20 | % | 9.00 | % | |||||
| Total capital ratio | 14.42 | % | 14.29 | % | 14.41 | % | |||||
(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) | |||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||
| (Unaudited) | (Audited) | (Unaudited) | |||||||||
| Assets | |||||||||||
| Cash and due from banks | $ | 20,470 | $ | 19,710 | $ | 17,245 | |||||
| Interest-bearing deposits in banks | 129,917 | 134,846 | 99,541 | ||||||||
| Federal funds sold | 86,736 | 96,095 | 76,010 | ||||||||
| Total cash and cash equivalents | 237,123 | 250,651 | 192,796 | ||||||||
| Securities available for sale, at fair value | 177,379 | 179,000 | 163,550 | ||||||||
| Securities held to maturity, at amortized cost | 19,627 | 19,632 | 19,647 | ||||||||
| Other equity securities, at fair value | 3,638 | 3,649 | 3,806 | ||||||||
| Restricted equity securities, at cost | 5,108 | 5,684 | 3,862 | ||||||||
| Loans held for sale | 425 | 450 | 2,376 | ||||||||
| Loans, net of unearned income | 1,965,149 | 1,884,508 | 1,645,315 | ||||||||
| Less allowance for credit losses | 25,144 | 24,378 | 19,855 | ||||||||
| Loans, net | 1,940,005 | 1,860,130 | 1,625,460 | ||||||||
| Premises and equipment, net | 26,262 | 26,426 | 27,098 | ||||||||
| Accrued interest receivable | 9,561 | 8,711 | 7,077 | ||||||||
| Bank owned life insurance | 30,075 | 29,884 | 29,350 | ||||||||
| Annuities | 15,939 | 15,036 | 15,489 | ||||||||
| Foreclosed assets | 33 | 33 | 2,930 | ||||||||
| Goodwill | 16,862 | 16,862 | 16,862 | ||||||||
| Core deposit intangible | 817 | 899 | 1,144 | ||||||||
| Other assets | 28,121 | 29,616 | 24,175 | ||||||||
| Total assets | $ | 2,510,975 | $ | 2,446,663 | $ | 2,135,622 | |||||
| Liabilities and Stockholders' Equity | |||||||||||
| Liabilities: | |||||||||||
| Deposits: | |||||||||||
| Noninterest-bearing | $ | 416,704 | $ | 437,959 | $ | 433,833 | |||||
| Interest-bearing | 1,693,094 | 1,580,230 | 1,355,658 | ||||||||
| Total deposits | 2,109,798 | 2,018,189 | 1,789,491 | ||||||||
| Other borrowings | 7,997 | 26,994 | (16 | ) | |||||||
| FHLB advances | 52,000 | 70,000 | 45,000 | ||||||||
| Subordinated notes | 86,776 | 86,679 | 86,388 | ||||||||
| Accrued interest payable | 1,805 | 1,519 | 844 | ||||||||
| Other liabilities | 29,718 | 28,318 | 24,252 | ||||||||
| Total liabilities | 2,288,094 | 2,231,699 | 1,945,959 | ||||||||
| Stockholders' equity: | |||||||||||
| Common stock | 44,746 | 44,479 | 43,798 | ||||||||
| Capital surplus | 79,282 | 78,361 | 77,053 | ||||||||
| Retained earnings | 109,838 | 102,523 | 80,642 | ||||||||
| Accumulated other comprehensive loss | (8,401 | ) | (8,379 | ) | (9,846 | ) | |||||
| Unvested restricted stock | (1,030 | ) | (466 | ) | (965 | ) | |||||
| Vested restricted stock units | (1,554 | ) | (1,554 | ) | (1,019 | ) | |||||
| Total stockholders' equity | 222,881 | 214,964 | 189,663 | ||||||||
| Total liabilities and stockholders' equity | $ | 2,510,975 | $ | 2,446,663 | $ | 2,135,622 | |||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||
| Three Months Ended | ||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||||
| Interest income: | ||||||||||
| Loans, including fees | $ | 33,628 | $ | 31,613 | $ | 25,335 | ||||
| Taxable securities | 1,981 | 1,986 | 1,383 | |||||||
| Nontaxable securities | 229 | 230 | 291 | |||||||
| Other interest and dividends | 2,898 | 2,343 | 1,690 | |||||||
| Total interest income | 38,736 | 36,172 | 28,699 | |||||||
| Interest expense: | ||||||||||
| Deposits | 15,906 | 13,869 | 7,768 | |||||||
| Other borrowings | 1,991 | 1,899 | 1,385 | |||||||
| Total interest expense | 17,897 | 15,768 | 9,153 | |||||||
| Net interest income | 20,839 | 20,404 | 19,546 | |||||||
| Provision for credit losses | 1,236 | 2,579 | 1,181 | |||||||
| Net interest income after provision for credit losses | 19,603 | 17,825 | 18,365 | |||||||
| Noninterest income: | ||||||||||
| Service charges on deposit accounts | 463 | 441 | 450 | |||||||
| Swap fees | 15 | 70 | (4 | ) | ||||||
| SBA/USDA fees | 64 | 70 | 134 | |||||||
| Mortgage origination fees | 96 | 87 | 100 | |||||||
| Net (loss) gain on securities | (12 | ) | 98 | 514 | ||||||
| Other operating income | 642 | 2,352 | 592 | |||||||
| Total noninterest income | 1,268 | 3,118 | 1,786 | |||||||
| Noninterest expenses: | ||||||||||
| Salaries and employee benefits | 6,231 | 5,739 | 6,311 | |||||||
| Equipment and occupancy expenses | 689 | 681 | 683 | |||||||
| Data processing fees | 643 | 639 | 593 | |||||||
| Regulatory assessments | 360 | 355 | 342 | |||||||
| Other operating expenses | 2,452 | 2,303 | 2,229 | |||||||
| Total noninterest expenses | 10,375 | 9,717 | 10,158 | |||||||
| Income before income taxes | 10,496 | 11,226 | 9,993 | |||||||
| Income tax expense | 2,377 | 2,330 | 2,322 | |||||||
| Net income | $ | 8,119 | $ | 8,896 | $ | 7,671 | ||||
| Basic earnings per share | $ | 0.91 | $ | 1.00 | $ | 0.87 | ||||
| Diluted earnings per share | $ | 0.90 | $ | 0.99 | $ | 0.85 | ||||
| AVERAGE BALANCE SHEET AND NET INTEREST MARGIN | |||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||||||||||||||||||||
| 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) | $ | 1,916,288 | $ | 33,628 | 7.06 | % | $ | 1,814,484 | $ | 31,613 | 6.91 | % | $ | 1,609,564 | $ | 25,335 | 6.38 | % | |||||||||||
| Taxable securities | 163,586 | 1,981 | 4.87 | % | 163,537 | 1,986 | 4.82 | % | 139,516 | 1,383 | 4.02 | % | |||||||||||||||||
| Nontaxable securities | 45,368 | 229 | 2.03 | % | 45,537 | 230 | 2.00 | % | 52,832 | 291 | 2.24 | % | |||||||||||||||||
| Other interest-earnings assets | 211,127 | 2,898 | 5.52 | % | 171,823 | 2,343 | 5.41 | % | 146,045 | 1,690 | 4.69 | % | |||||||||||||||||
| Total interest-earning assets | $ | 2,336,369 | $ | 38,736 | 6.67 | % | $ | 2,195,381 | $ | 36,172 | 6.54 | % | $ | 1,947,957 | $ | 28,699 | 5.97 | % | |||||||||||
| Allowance for credit losses | (24,313 | ) | (22,666 | ) | (20,493 | ) | |||||||||||||||||||||||
| Noninterest-earning assets | 135,222 | 130,683 | 129,541 | ||||||||||||||||||||||||||
| Total Assets | $ | 2,447,278 | $ | 2,303,398 | $ | 2,057,005 | |||||||||||||||||||||||
| Liabilities and Stockholders' Equity: | |||||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||
| Interest-bearing transaction accounts | 85,858 | 26 | 0.12 | % | 86,163 | 23 | 0.11 | % | 93,951 | 20 | 0.08 | % | |||||||||||||||||
| Savings and money market accounts | 902,361 | 8,804 | 3.92 | % | 885,548 | 8,445 | 3.78 | % | 806,001 | 5,040 | 2.54 | % | |||||||||||||||||
| Time deposits | 645,088 | 7,076 | 4.41 | % | 530,637 | 5,401 | 4.04 | % | 400,680 | 2,708 | 2.74 | % | |||||||||||||||||
| FHLB advances | 53,121 | 655 | 4.96 | % | 52,076 | 645 | 4.92 | % | 18,578 | 159 | 3.47 | % | |||||||||||||||||
| Other borrowings | 95,650 | 1,336 | 5.62 | % | 88,714 | 1,254 | 5.61 | % | 86,323 | 1,226 | 5.76 | % | |||||||||||||||||
| Total interest-bearing liabilities | $ | 1,782,078 | $ | 17,897 | 4.04 | % | $ | 1,643,138 | $ | 15,768 | 3.81 | % | $ | 1,405,533 | $ | 9,153 | 2.64 | % | |||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||
| Noninterest-bearing deposits | $ | 416,141 | $ | 420,019 | $ | 438,735 | |||||||||||||||||||||||
| Other liabilities | 29,437 | 32,917 | 26,098 | ||||||||||||||||||||||||||
| Total noninterest-bearing liabilities | $ | 445,578 | $ | 452,936 | $ | 464,833 | |||||||||||||||||||||||
| Stockholders' Equity | 219,622 | 207,324 | 186,639 | ||||||||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 2,447,278 | $ | 2,303,398 | $ | 2,057,005 | |||||||||||||||||||||||
| Net interest income | $ | 20,839 | $ | 20,404 | $ | 19,546 | |||||||||||||||||||||||
| Net interest spread(2) | 2.63 | % | 2.73 | % | 3.33 | % | |||||||||||||||||||||||
| Net interest margin(3) | 3.59 | % | 3.69 | % | 4.07 | % | |||||||||||||||||||||||
| Net interest margin - FTE(4)(5) | 3.60 | % | 3.71 | % | 4.09 | % | |||||||||||||||||||||||
| Cost of funds(6) | 3.27 | % | 3.03 | % | 2.01 | % | |||||||||||||||||||||||
| Cost of interest-bearing deposits | 3.92 | % | 3.66 | % | 2.42 | % | |||||||||||||||||||||||
| Cost of total deposits | 3.12 | % | 2.86 | % | 1.81 | % | |||||||||||||||||||||||
(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) | ||||||||||||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||||||||||||
| Amount | % of gross | Amount | % of gross | Amount | % of gross | |||||||||||||||
| Real estate mortgages: | ||||||||||||||||||||
| Construction and development | $ | 252,934 | 12.8 | % | $ | 242,960 | 12.9 | % | $ | 227,560 | 13.8 | % | ||||||||
| Residential | 238,702 | 12.1 | % | 224,603 | 11.9 | % | 196,923 | 11.9 | % | |||||||||||
| Commercial | 1,182,634 | 60.0 | % | 1,144,867 | 60.5 | % | 948,251 | 57.5 | % | |||||||||||
| Commercial and industrial | 288,701 | 14.7 | % | 269,961 | 14.3 | % | 270,825 | 16.4 | % | |||||||||||
| Consumer and other | 8,425 | 0.4 | % | 8,286 | 0.4 | % | 7,370 | 0.4 | % | |||||||||||
| Gross loans | 1,971,396 | 100.0 | % | 1,890,677 | 100.0 | % | 1,650,929 | 100.0 | % | |||||||||||
| Unearned income | (6,247 | ) | (6,169 | ) | (5,614 | ) | ||||||||||||||
| Loans, net of unearned income | 1,965,149 | 1,884,508 | 1,645,315 | |||||||||||||||||
| Allowance for credit losses | (25,144 | ) | (24,378 | ) | (19,855 | ) | ||||||||||||||
| Loans, net | $ | 1,940,005 | $ | 1,860,130 | $ | 1,625,460 | ||||||||||||||
| DEPOSIT COMPOSITION | |||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||||||||
| Amount | % of total | Amount | % of total | Amount | % of total | ||||||||||||
| Noninterest-bearing transaction | $ | 416,704 | 19.7 | % | $ | 437,959 | 21.7 | % | $ | 433,833 | 24.2 | % | |||||
| Interest-bearing transaction | 974,079 | 46.2 | % | 946,347 | 46.9 | % | 877,166 | 49.0 | % | ||||||||
| Savings | 33,909 | 1.6 | % | 35,412 | 1.7 | % | 47,742 | 2.7 | % | ||||||||
| Time deposits, $250,000 and under | 584,658 | 27.7 | % | 500,406 | 24.8 | % | 366,271 | 20.5 | % | ||||||||
| Time deposits, over $250,000 | 100,448 | 4.8 | % | 98,065 | 4.9 | % | 64,479 | 3.6 | % | ||||||||
| Total deposits | $ | 2,109,798 | 100.0 | % | $ | 2,018,189 | 100.0 | % | $ | 1,789,491 | 100.0 | % | |||||
| Nonperfoming Assets | |||||||||||
| (Dollars in thousands) | |||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||
| Nonaccrual loans | $ | 3,446 | $ | 1,017 | $ | 1,646 | |||||
| Past due loans 90 days or more and still accruing interest | - | 160 | - | ||||||||
| Total nonperforming loans | 3,446 | 1,177 | 1,646 | ||||||||
| OREO | 33 | 33 | 2,930 | ||||||||
| Total nonperforming assets | $ | 3,479 | $ | 1,210 | $ | 4,576 | |||||
| Financial difficulty modification loans- nonaccrual(1) | 675 | 907 | 805 | ||||||||
| Financial difficulty modification loans - accruing | 1,283 | 1,095 | 1,272 | ||||||||
| Financial difficulty modification loans | $ | 1,958 | $ | 2,002 | $ | 2,077 | |||||
| Allowance for credit losses | $ | 25,144 | $ | 24,378 | $ | 19,855 | |||||
| Loans, net of unearned income at the end of the period | $ | 1,965,149 | $ | 1,884,508 | $ | 1,645,315 | |||||
| Gross loans outstanding at the end of period | $ | 1,971,396 | $ | 1,890,677 | $ | 1,650,929 | |||||
| Total assets | $ | 2,510,975 | $ | 2,446,663 | $ | 2,135,622 | |||||
| Allowance for credit losses to nonperforming loans | 729.66 | % | 2071.20 | % | 1206.26 | % | |||||
| Nonperforming loans to loans, net of unearned income | 0.18 | % | 0.06 | % | 0.10 | % | |||||
| Nonperforming loans to gross loans | 0.17 | % | 0.06 | % | 0.10 | % | |||||
| Nonperforming assets to gross loans and OREO | 0.18 | % | 0.06 | % | 0.28 | % | |||||
| Nonperforming assets to total assets | 0.14 | % | 0.05 | % | 0.21 | % | |||||
| Nonaccrual loans by category: | |||||||||||
| Real estate mortgages: | |||||||||||
| Construction & Development | $ | - | $ | - | $ | 64 | |||||
| Residential Mortgages | 246 | 252 | 267 | ||||||||
| Commercial Real Estate Mortgages | 2,422 | 765 | 1,263 | ||||||||
| Commercial & Industrial | 778 | - | 51 | ||||||||
| Consumer and other | - | - | 1 | ||||||||
| Total | $ | 3,446 | $ | 1,017 | $ | 1,646 | |||||
(1) Financial difficulty modification 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 | |||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||
| Average loans, net of unearned income | $ | 1,916,288 | $ | 1,814,484 | $ | 1,609,564 | |||||
| Loans, net of unearned income | 1,965,149 | 1,884,508 | 1,645,315 | ||||||||
| Gross loans | 1,971,396 | 1,890,677 | 1,650,929 | ||||||||
| Allowance for credit losses at beginning of the period | 24,378 | 22,181 | 20,156 | ||||||||
| Impact of adoption of ASC 326 | - | - | (1,285 | ) | |||||||
| Charge-offs: | |||||||||||
| Construction and development | - | - | - | ||||||||
| Residential | 11 | - | - | ||||||||
| Commercial | 27 | - | - | ||||||||
| Commercial and industrial | 442 | 424 | 218 | ||||||||
| Consumer and other | 15 | 2 | 6 | ||||||||
| Total charge-offs | 495 | 426 | 224 | ||||||||
| Recoveries: | |||||||||||
| Construction and development | - | - | - | ||||||||
| Residential | 8 | 4 | 11 | ||||||||
| Commercial | - | - | - | ||||||||
| Commercial and industrial | 16 | 39 | 14 | ||||||||
| Consumer and other | 1 | 1 | 2 | ||||||||
| Total recoveries | 25 | 44 | 27 | ||||||||
| Net charge-offs | $ | 470 | $ | 382 | $ | 197 | |||||
| Provision for credit losses | $ | 1,236 | $ | 2,579 | $ | 1,181 | |||||
| Balance at end of the period | $ | 25,144 | $ | 24,378 | $ | 19,855 | |||||
| Allowance for credit losses on unfunded commitments at beginning of the period | $ | 1,239 | $ | 1,524 | $ | - | |||||
| Impact of adoption of ASC 326 | - | - | 1,285 | ||||||||
| Provision (credit) for credit losses on unfunded commitments | 49 | (285 | ) | - | |||||||
| Balance at the end of the period | $ | 1,288 | $ | 1,239 | $ | 1,285 | |||||
| Allowance to loans, net of unearned income | 1.28 | % | 1.29 | % | 1.21 | % | |||||
| Allowance to gross loans | 1.28 | % | 1.29 | % | 1.20 | % | |||||
| Net charge-offs to average loans, net of unearned income(1) | 0.10 | % | 0.08 | % | 0.05 | % | |||||
| Provision for credit losses to average loans, net of unearned income(1) | 0.26 | % | 0.56 | % | 0.30 | % | |||||
(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, 2024 | December 31, 2023 | March 31, 2023 | |||||||||
| Net income | $ | 8,119 | $ | 8,896 | $ | 7,671 | |||||
| Add: Net OREO gains | - | (154 | ) | - | |||||||
| Less: Provision fee received on early loan payoff | - | 1,863 | - | ||||||||
| Less: Net (loss) gain on securities | (12 | ) | 98 | 514 | |||||||
| Less: Tax effect | 3 | (508 | ) | (123 | ) | ||||||
| Core net income | $ | 8,128 | $ | 7,289 | $ | 7,280 | |||||
| Average assets | $ | 2,447,278 | $ | 2,303,398 | $ | 2,057,005 | |||||
| Core return on average assets | 1.34 | % | 1.26 | % | 1.44 | % | |||||
| Net income | $ | 8,119 | $ | 8,896 | $ | 7,671 | |||||
| Add: Net OREO gains | - | (154 | ) | - | |||||||
| Add: Provision for credit losses | 1,236 | 2,579 | 1,181 | ||||||||
| Less: Provision fee received on early loan payoff | - | 1,863 | - | ||||||||
| Less: Net (loss) gain on securities | (12 | ) | 98 | 514 | |||||||
| Add: Income taxes | 2,377 | 2,330 | 2,322 | ||||||||
| Pretax pre-provision core net income | $ | 11,744 | $ | 11,690 | $ | 10,660 | |||||
| Average assets | $ | 2,447,278 | $ | 2,303,398 | $ | 2,057,005 | |||||
| Pretax pre-provision core return on average assets | 1.93 | % | 2.01 | % | 2.10 | % | |||||
| Net interest income | $ | 20,839 | $ | 20,404 | $ | 19,546 | |||||
| Add: Fully-taxable equivalent adjustments(1) | 73 | 99 | 85 | ||||||||
| Net interest income - FTE | $ | 20,912 | $ | 20,503 | $ | 19,631 | |||||
| Net interest margin | 3.59 | % | 3.69 | % | 4.07 | % | |||||
| Effect of fully-taxable equivalent adjustments(1) | 0.01 | % | 0.02 | % | 0.02 | % | |||||
| Net interest margin - FTE | 3.60 | % | 3.71 | % | 4.09 | % | |||||
| Total stockholders' equity | $ | 222,881 | $ | 214,964 | $ | 189,663 | |||||
| Less: Intangible assets | 17,679 | 17,761 | 18,006 | ||||||||
| Tangible common equity | $ | 205,202 | $ | 197,203 | $ | 171,657 | |||||
| (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 | |||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||
| Core net income | $ | 8,128 | $ | 7,289 | $ | 7,280 | |||||
| Diluted weighted average shares outstanding | 9,043,122 | 9,021,358 | 9,044,490 | ||||||||
| Diluted core earnings per share | $ | 0.90 | $ | 0.81 | $ | 0.80 | |||||
| Common shares outstanding at year or period end | 8,894,794 | 8,841,349 | 8,723,763 | ||||||||
| Tangible book value per share | $ | 23.07 | $ | 22.30 | $ | 19.68 | |||||
| Total assets at end of period | $ | 2,510,975 | $ | 2,446,663 | $ | 2,135,622 | |||||
| Less: Intangible assets | 17,679 | 17,761 | 18,006 | ||||||||
| Adjusted assets at end of period | $ | 2,493,296 | $ | 2,428,902 | $ | 2,117,616 | |||||
| Tangible common equity to tangible assets | 8.23 | % | 8.12 | % | 8.11 | % | |||||
| Total average shareholders equity | $ | 219,622 | $ | 207,324 | $ | 186,639 | |||||
| Less: Average intangible assets | 17,730 | 17,809 | 18,055 | ||||||||
| Average tangible common equity | $ | 201,892 | $ | 189,515 | $ | 168,584 | |||||
| Net income to common shareholders | $ | 8,119 | $ | 8,896 | $ | 7,671 | |||||
| Return on average tangible common equity | 16.17 | % | 18.62 | % | 18.45 | % | |||||
| Average tangible common equity | $ | 201,892 | $ | 189,515 | $ | 168,584 | |||||
| Core net income | $ | 8,128 | $ | 7,289 | $ | 7,280 | |||||
| Core return on average tangible common equity | 16.19 | % | 15.26 | % | 17.51 | % | |||||
| Net interest income | $ | 20,839 | $ | 20,404 | $ | 19,546 | |||||
| Add: Noninterest income | 1,268 | 3,118 | 1,786 | ||||||||
| Less: Provision fee received on early loan payoff | - | 1,863 | - | ||||||||
| Less: Net (loss) gain on securities | (12 | ) | 98 | 514 | |||||||
| Operating revenue | $ | 22,119 | $ | 21,561 | $ | 20,818 | |||||
| Expenses: | |||||||||||
| Total noninterest expense | $ | 10,375 | $ | 9,717 | $ | 10,158 | |||||
| Less: Net OREO gains | - | (154 | ) | - | |||||||
| Adjusted noninterest expenses | $ | 10,375 | $ | 9,871 | $ | 10,158 | |||||
| Core efficiency ratio | 46.90 | % | 45.78 | % | 48.79 | % | |||||
