RALEIGH, N.C., April 17, 2025 /PRNewswire/ -- Dogwood State Bank (OTC: DSBX) ("Dogwood" or the "Bank") announced today its financial results for the three months ended March 31, 2025.
First Quarter 2025 Highlights
- Net income rose to $7.4 million ($0.39 per diluted share) in Q1 2025, compared to $6.2 million ($0.32 per diluted share) in Q4 2024 and $1.8 million ($0.12 per diluted share) in Q1 2024.
- Adjusted net income (non-GAAP) rose to $7.5 million ($0.39 per diluted share) in Q1 2025, compared to $6.6 million ($0.35 per diluted share) in Q4 2024 and $2.6 million ($0.17 per diluted share) in Q1 2024.
- Return on average assets increased to 1.34% in Q1 2025, compared to 1.13% in Q4 2024 and 0.53% in Q1 2024.
- Adjusted return on average assets (non-GAAP) increased to 1.36% in Q1 2025, compared to 1.22% in Q4 2024 and 0.74% in Q1 2024.
- Net interest margin expanded to 4.20% in Q1 2025, compared to 4.13% in Q4 2024 and 3.41% in Q1 2024.
- Efficiency ratio improved to 59.7% in Q1 2025, compared to 63.5% in Q4 2024 and 76.4% in Q1 2024.
- Tangible book value per share grew to $11.36 at March 31, 2025, which was an increase of $0.45 per share since December 31, 2024 and an increase of $0.55 per share since March 31, 2024.
"I am extremely proud of our operating metrics this quarter as we continue to achieve record results," commented Steve Jones, Chief Executive Officer. "Our strong earnings performance reflects solid business fundamentals and disciplined execution. This success is a testament to the dedication and expertise of our team whose continued efforts are driving sustainable value for our shareholders."
Q1 2025 Earnings Performance vs. Q1 2024
Dogwood reported net income in Q1 2025 of $7.4 million, or $0.39 per diluted share, compared to $1.8 million, or $0.12 per diluted share, in Q1 2024. Current quarter earnings benefited from an expanded net interest margin, higher SBA lending income, and the acquisition of Community First Bancorporation ("Community First") in Q3 2024.
Adjusted net income (non-GAAP) in Q1 2025, which excludes the impact of merger & acquisition expenses, increased to $7.5 million, or $0.39 per diluted share, from $2.6 million, or $0.17 per diluted share, in Q1 2024. Adjusted pre-tax, pre-provision net revenue (non-GAAP) in Q1 2025 was $10.8 million, which was an increase from $4.3 million in Q1 2024.
Net Interest Income
Net interest income was $21.6 million in Q1 2025, an increase from $11.3 million in Q1 2024. The increase was primarily due to significant growth in interest-earning assets over the past year, including an increase in assets from the Community First acquisition, and an expansion in net interest margin.
Total average interest-earning assets increased to $2.09 billion in Q1 2025 from $1.34 billion in Q1 2024. Average loans increased by $706.6 million. Average investment securities balances increased by $50.6 million.
Net interest margin expanded to 4.20% in Q1 2025 from 3.41% in Q1 2024. Lower cost of funds and higher yields on interest-earning assets coupled with a more favorable mix of those assets contributed to the improved net interest margin.
Provision for Credit Losses and Asset Quality
Provision for credit losses was $1.1 million in Q1 2025, an increase from $921 thousand in Q1 2024. The allowance for credit losses to total loans was 1.10% as of Q1 2025, compared to 1.08% as of Q4 2024 and 1.07% Q1 2024.
Nonperforming loans were 0.41% of total loans as of Q1 2025, compared to 0.33% as of Q4 2024, and 0.18% as of Q1 2024. Annualized net charge-offs were 0.11% of average loans in Q1 2025, compared to 0.13% in Q4 2024 and 0.10% in Q1 2024. The majority of charge offs recognized in Q1 2025 were related to unguaranteed portions of U.S. Small Business Administration ("SBA") loans.
Non-Interest Income
Non-interest income was $4.8 million in Q1 2025, an increase from $2.9 million in Q1 2024. This increase was primarily due to $994 thousand of growth in SBA lending income as well as $615 thousand of growth in deposit service charges and debit card income.
SBA lending income rose due to a combination of higher balances of guaranteed loans sold in the secondary market, higher premiums on sales of guaranteed loans sold, and higher servicing fee income. The weighted average net premium on SBA loans sold in Q1 2025 was 9.25%, an increase from 8.81% in Q1 2024. Guaranteed balances of SBA loans sold totaled $33.6 million in Q1 2025, which was an increase from $20.8 million in Q1 2024.
Deposit service charges and debit card income increased by $615 thousand, which was primarily due to the Community First acquisition.
Non-Interest Expense
Non-interest expense was $15.8 million in Q1 2025, an increase from $10.8 million in Q1 2024. This increase was primarily due to a $2.8 million increase in compensation and benefits expense, which was partially related to higher headcount from the Community First acquisition as well as other investments that have been made in human capital across the Bank to support organic growth. Increases in expense items such as occupancy and equipment (+$622 thousand), software (+$253 thousand), data processing (+$440 thousand), and FDIC insurance (+$176 thousand) were primarily due to the Community First acquisition. Further, amortization of the Community First core deposit intangible, which was recognized at acquisition, added $583 thousand to expense in the quarter.
The increase in expenses was partially offset by a decrease of $830 thousand in merger & acquisition expenses related to the Community First acquisition.
Income Taxes
Dogwood incurred tax expense of $2.2 million in Q1 2025, an increase from $588 thousand in Q1 2024. The effective tax benefit rate was 22.7% in Q1 2025, which was comparable to the effective tax rate of 22.8% in Q1 2024.
Q1 2025 Earnings Performance vs. Q4 2024
Dogwood reported net income in Q1 2025 of $7.4 million, or $0.39 per diluted share, compared to $6.2 million, or $0.32 per diluted share, in Q4 2024. Current quarter earnings benefited from an expanded net interest margin and higher SBA lending income.
Adjusted net income (non-GAAP) in Q1 2025, which excludes the impact of merger & acquisition expenses, increased to $7.5 million, or $0.39 per diluted share, from $6.6 million, or $0.35 per diluted share, in Q4 2024. Adjusted pre-tax, pre-provision net revenue (non-GAAP) in Q1 2025 was $10.8 million, which was an increase from $9.7 million in Q4 2024.
Net Interest Income
Net interest income was $21.6 million in Q1 2025, an increase from $21.1 million in Q4 2024. The increase was due to growth in interest-earning assets and an expansion in net interest margin.
Total average interest-earning assets increased to $2.09 billion in Q1 2025 from $2.04 billion in Q4 2024. Average loans increased by $59.9 million. Average investment securities balances increased by $11.6 million.
Net interest margin expanded to 4.20% in Q1 2025 from 4.13% in Q4 2024. The primary driver of the improved net interest margin was a drop in cost of funds, which decreased from 2.50% in Q4 2024 to 2.42% in Q1 2025.
Provision for Credit Losses and Asset Quality
Provision for credit losses was $1.1 million in Q1 2025, which was flat compared to Q4 2024. The allowance for credit losses to total loans was 1.10% as of Q1 2025, compared to 1.08% as of Q4 2024.
Nonperforming loans were 0.41% of total loans as of Q1 2025, compared to 0.33% as of Q4 2024. Annualized net charge-offs were 0.11% of average loans in Q1 2025, compared to 0.13% in Q4 2024. The majority of charge offs recognized in Q1 2025 were related to unguaranteed portions of SBA loans.
Non-Interest Income
Non-interest income was $4.8 million in Q1 2025, an increase from $3.7 million in Q4 2024. This increase was primarily due to $972 thousand of growth in SBA lending income. SBA lending income rose due to a combination of higher balances of guaranteed loans sold in the secondary market, higher premiums on sales of guaranteed loans sold, and higher servicing fee income. The weighted average net premium on SBA loans sold in Q1 2025 was 9.25%, an increase from 8.95% in Q4 2024. Guaranteed balances of SBA loans sold totaled $33.6 million in Q1 2025, which was an increase from $23.2 million in Q4 2024.
Non-Interest Expense
Non-interest expense was $15.8 million in Q1 2025, which was flat compared to Q4 2024. Occupancy and equipment expense was $175 thousand higher partially due to the recent openings of Dogwood's new Greenville, SC and Charleston, SC offices. Other non-interest expenses were also $282 thousand higher due to a variety of items. The increase in expenses was offset by a decrease of $467 thousand in merger & acquisition expenses related to the Community First acquisition.
Income Taxes
Dogwood incurred tax expense of $2.2 million in Q1 2025, an increase from $1.8 million in Q4 2024. The effective tax benefit rate was 22.7% in Q1 2025, which was flat compared to the effective tax rate in Q4 2024.
About Dogwood State Bank
Dogwood State Bank is a state-chartered community bank headquartered in Raleigh, North Carolina, with approximately $2.29 billion in total assets. Dogwood provides a wide range of banking products and services through its online offerings and twenty-one branch offices in North Carolina, South Carolina, and Eastern Tennessee. Dogwood also specializes in providing lending services to small businesses through its Dogwood State Bank Small Business Lending division. Dogwood is focused on becoming the bank for businesses, business owners, professionals, and their employees and redefining what it means to Bank Local. By leveraging leadership, investing in technology, and committing to personalized, superior customer service, Dogwood is changing the landscape of community banking.
Forward-Looking Statements
Statements made in this press release, other than those concerning historical financial information, may be considered forward-looking statements, which speak only as of the date of this press release and are based on current expectations and involve a number of assumptions. Forward-looking statements can be identified by words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. Our ability to predict results, or the actual effect of future plans or strategies, is inherently uncertain. Factors that could have a material effect on the Bank's operations and future prospects include but are not limited to: the expected growth opportunities or cost savings from the proposed merger (the "merger") of Community First and Community First Bank, Inc. with and into the Bank may not be fully realized or may take longer to realize than expected; the businesses of the Bank and Community First may not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; deposit attrition, operating costs, customer losses and business disruption prior to and following the merger, including adverse effects on relationships with employees and customers, may be greater than expected; the regulatory and shareholder approvals required for the merger may not be obtained; changes in interest rates, general economic and business conditions; legislative/regulatory changes; the monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System; the quality and composition of the Bank's loan and securities portfolios; demand for loan products and other financial services in our market areas; inflation; deposit flows; competition; our implementation of new technologies and ability to develop and maintain secure and reliable electronic systems; changes in the securities markets; and changes in accounting principles, policies and guidelines. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. We undertake no obligation to update or clarify these forward-looking statements, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with United States generally accepted accounting principles ("GAAP"). The Bank uses the non-GAAP financial measures discussed herein in its analysis of the Bank's performance. The Bank's management believes that these non-GAAP financial measures enhance comparability of results of operations with prior periods by excluding the impact of items or events that may obscure trends in the Bank's performance. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Please refer to the Non-GAAP Reconciliation table for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measure.
Financial Tables
Dogwood State Bank | ||||||||
Income Statements | ||||||||
Quarter Ended | ||||||||
(Dollars in thousands, except per share data) | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |||
Net interest income | $ 21,613 | $ 21,129 | $ 18,157 | $ 12,521 | $ 11,312 | |||
Provision for credit losses | 1,118 | 1,116 | 5,857 | 2,017 | 921 | |||
Net interest income after provision | 20,495 | 20,013 | 12,300 | 10,504 | 10,391 | |||
Non-interest income | ||||||||
SBA lending | 3,191 | 2,219 | 2,801 | 2,717 | 2,197 | |||
Service charges and debit card income | 966 | 954 | 811 | 340 | 351 | |||
Bank-owned life insurance | 349 | 346 | 301 | 219 | 211 | |||
Securities gains (losses), net | 37 | 60 | (8) | (6) | 6 | |||
Other | 235 | 160 | 293 | 161 | 85 | |||
Total non-interest income | 4,778 | 3,739 | 4,198 | 3,431 | 2,850 | |||
Non-interest expense | ||||||||
Compensation and benefits | 9,329 | 9,389 | 8,598 | 6,683 | 6,506 | |||
Occupancy and equipment | 1,341 | 1,166 | 1,025 | 707 | 719 | |||
Software | 599 | 561 | 497 | 344 | 346 | |||
Loan related costs | 579 | 570 | 182 | 314 | 290 | |||
Data processing | 701 | 780 | 648 | 315 | 261 | |||
Professional fees | 223 | 157 | 208 | 235 | 225 | |||
FDIC insurance | 416 | 390 | 287 | 204 | 240 | |||
Merger and acquisition expenses | 128 | 595 | 9,139 | 562 | 958 | |||
Amortization of other intangible assets | 583 | 599 | 408 | 4 | 11 | |||
Other | 1,854 | 1,572 | 1,731 | 1,102 | 1,259 | |||
Total non-interest expense | 15,753 | 15,779 | 22,723 | 10,470 | 10,815 | |||
Net income (loss) before income taxes | 9,520 | 7,973 | (6,225) | 3,465 | 2,426 | |||
Income tax expense (benefit) | 2,161 | 1,812 | (1,445) | 811 | 588 | |||
Net income (loss) | $ 7,359 | $ 6,161 | $ (4,780) | $ 2,654 | $ 1,838 | |||
Pre-Tax, Pre-Provision Net Revenue (PPNR)(1) | $ 10,638 | $ 9,089 | $ (368) | $ 5,482 | $ 3,347 | |||
Adjusted PPNR(1) | 10,766 | 9,684 | 8,771 | 6,044 | 4,305 | |||
Per Share Data: | ||||||||
Earnings per share (EPS) - basic | $ 0.40 | $ 0.33 | $ (0.28) | $ 0.18 | $ 0.13 | |||
Adjusted EPS - basic(1) | 0.40 | 0.36 | 0.37 | 0.21 | 0.18 | |||
Earnings per share - diluted | 0.39 | 0.32 | (0.27) | 0.17 | 0.12 | |||
Adjusted EPS - diluted(1) | 0.39 | 0.35 | 0.36 | 0.20 | 0.17 | |||
Performance Ratios: | ||||||||
Return on average assets (ROA) | 1.34 % | 1.13 % | -0.97 % | 0.71 % | 0.53 % | |||
Adjusted ROA(1) | 1.36 % | 1.22 % | 1.30 % | 0.83 % | 0.74 % | |||
Return on average equity (ROE) | 12.67 % | 10.73 % | -9.07 % | 6.16 % | 4.44 % | |||
Adjusted ROE(1) | 12.84 % | 11.53 % | 12.09 % | 7.16 % | 6.22 % | |||
Return on tangible common equity (ROTCE)(1) | 14.03 % | 11.96 % | -9.93 % | 6.42 % | 4.63 % | |||
Adjusted ROTCE(1) | 14.22 % | 12.85 % | 13.24 % | 7.46 % | 6.50 % | |||
Net interest margin | 4.20 % | 4.13 % | 3.93 % | 3.53 % | 3.41 % | |||
Efficiency ratio | 59.69 % | 63.45 % | 101.65 % | 65.63 % | 76.37 % | |||
Adjusted efficiency ratio(1) | 59.21 % | 61.06 % | 60.76 % | 62.11 % | 69.60 % | |||
(1) Denotes a non-GAAP measure. Refer to the non-GAAP reconciliation subsequently included in these materials for a reconciliation to the | ||||||||
Dogwood State Bank | ||||||||
Balance Sheets | ||||||||
Ending Balance | ||||||||
(In thousands, except per share data) | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |||
Assets | ||||||||
Cash and due from banks | $ 7,309 | $ 10,582 | $ 7,622 | $ 2,514 | $ 2,353 | |||
Interest-earning deposits with banks | 112,755 | 75,612 | 146,732 | 59,073 | 91,365 | |||
Total cash and cash equivalents | 120,064 | 86,194 | 154,354 | 61,587 | 93,718 | |||
Investment securities available for sale | 118,890 | 99,411 | 95,290 | 58,989 | 55,984 | |||
Investment securities held to maturity | 71,044 | 71,952 | 73,144 | 74,404 | 76,119 | |||
Marketable equity securities | 432 | 395 | 335 | 329 | 336 | |||
Total investment securities | 190,366 | 171,758 | 168,769 | 133,722 | 132,439 | |||
Loans held for sale | 2,438 | 6,733 | 7,924 | 11,030 | 8,146 | |||
Loans | 1,855,716 | 1,819,796 | 1,757,828 | 1,236,722 | 1,148,899 | |||
Less allowance for credit losses | (20,491) | (19,698) | (19,143) | (13,349) | (12,344) | |||
Loans, net | 1,835,225 | 1,800,098 | 1,738,685 | 1,223,373 | 1,136,555 | |||
Bank-owned life insurance | 45,438 | 45,089 | 44,743 | 27,888 | 27,669 | |||
Premises and equipment, net | 36,572 | 37,180 | 35,378 | 19,713 | 18,838 | |||
SBA servicing asset | 5,387 | 4,982 | 5,026 | 4,568 | 4,373 | |||
Goodwill | 11,688 | 11,771 | 11,771 | 7,016 | 7,016 | |||
Other intangible assets, net | 10,791 | 11,374 | 11,972 | - | 4 | |||
Other assets | 35,934 | 35,991 | 36,274 | 21,854 | 19,750 | |||
Total assets | $ 2,293,903 | $ 2,211,170 | $ 2,214,896 | $ 1,510,751 | $ 1,448,508 | |||
Liabilities and Shareholders' Equity | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ 463,088 | $ 474,458 | $ 483,908 | $ 379,465 | $ 302,705 | |||
Interest-bearing | 1,420,785 | 1,334,937 | 1,357,439 | 872,430 | 913,914 | |||
Total deposits | 1,883,873 | 1,809,395 | 1,841,347 | 1,251,895 | 1,216,619 | |||
FHLB advances | 130,141 | 130,164 | 101,686 | 60,000 | 40,000 | |||
Subordinated debt | 9,788 | 9,708 | 9,627 | - | - | |||
Lease obligations | 12,017 | 12,258 | 10,491 | 10,726 | 10,959 | |||
Other liabilities | 19,596 | 19,456 | 26,503 | 13,162 | 11,459 | |||
Total liabilities | 2,055,415 | 1,980,981 | 1,989,654 | 1,335,783 | 1,279,037 | |||
Shareholders' equity | ||||||||
Common stock ($1 par value) | 19,013 | 18,976 | 18,980 | 15,541 | 15,020 | |||
Additional paid-in capital | 188,421 | 188,175 | 187,981 | 137,431 | 135,077 | |||
Retained earnings | 35,638 | 28,280 | 22,118 | 26,897 | 24,244 | |||
Accumulated other comprehensive loss | (4,584) | (5,242) | (3,837) | (4,901) | (4,870) | |||
Total shareholders' equity | 238,488 | 230,189 | 225,242 | 174,968 | 169,471 | |||
Total liabilities and shareholders' equity | $ 2,293,903 | $ 2,211,170 | $ 2,214,896 | $ 1,510,751 | $ 1,448,508 | |||
Per Share Information: | ||||||||
Shares outstanding | 19,013 | 18,976 | 18,980 | 15,541 | 15,020 | |||
Book value per share | $ 12.54 | $ 12.13 | $ 11.87 | $ 11.26 | $ 11.28 | |||
Tangible book value per share(1) | $ 11.36 | $ 10.91 | $ 10.62 | $ 10.81 | $ 10.82 | |||
Capital Ratios: | ||||||||
Tier 1 leverage | 9.95 % | 9.84 % | 10.58 % | 12.14 % | 11.75 % | |||
Common equity Tier 1 capital | 11.14 % | 10.97 % | 10.70 % | 12.64 % | 13.12 % | |||
Tier 1 risk-based capital | 11.14 % | 10.97 % | 10.70 % | 12.64 % | 13.12 % | |||
Total risk-based capital | 12.81 % | 12.63 % | 12.34 % | 13.81 % | 14.29 % | |||
Tangible common equity(1) | 9.51 % | 9.46 % | 9.20 % | 11.17 % | 11.27 % | |||
(1) Denotes a non-GAAP measure. Refer to the non-GAAP reconciliation subsequently included in these materials for a reconciliation to the most | ||||||||
Dogwood State Bank | ||||||||
Asset Quality Measures | ||||||||
Quarter Ended | ||||||||
(Dollars in thousands) | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |||
Nonperforming Assets: | ||||||||
Non-accrual loans | $ 7,635 | $ 5,582 | $ 3,234 | $ 3,234 | $ 2,069 | |||
Loans 90 days or more past due and accruing | - | 338 | - | - | - | |||
Other real estate owned | 104 | 104 | 104 | 104 | - | |||
Total nonperforming assets | $ 7,739 | $ 6,024 | $ 3,338 | $ 3,338 | $ 2,069 | |||
Asset Quality Ratios: | ||||||||
Nonperforming loans/loans | 0.41 % | 0.33 % | 0.18 % | 0.26 % | 0.18 % | |||
Nonperforming assets/total assets | 0.34 % | 0.27 % | 0.15 % | 0.22 % | 0.14 % | |||
Nonperforming assets/loans and other real estate owned | 0.42 % | 0.33 % | 0.19 % | 0.27 % | 0.18 % | |||
Loans 30 days or more past due/loans (excludes non-accruals) | 0.77 % | 0.67 % | 0.29 % | 0.21 % | 0.41 % | |||
Allowance for Credit Losses (ACL): | ||||||||
ACL on Loans: | ||||||||
Balance, beginning of period | $ 19,698 | $ 19,143 | $ 13,349 | $ 12,344 | $ 11,943 | |||
Reclass of Day 1 ACL from fair value discount on acquired PCD loans | - | - | 658 | - | - | |||
Loans charged off | (632) | (614) | (738) | (987) | (288) | |||
Recoveries of loans previously charged off | 151 | 29 | 79 | 11 | 9 | |||
Net loans charged off | (481) | (585) | (659) | (976) | (279) | |||
Provision for credit losses | 1,274 | 1,140 | 5,795 | 1,981 | 680 | |||
Balance, end of period | $ 20,491 | $ 19,698 | $ 19,143 | $ 13,349 | $ 12,344 | |||
ACL on Off-Balance Sheet Credit Exposures: | ||||||||
Balance, beginning of period | $ 2,571 | $ 2,595 | $ 2,336 | $ 2,300 | $ 2,059 | |||
Reserve on acquired unfunded loan commitments | - | - | 197 | - | - | |||
Provision for credit losses | (156) | (24) | 62 | 36 | 241 | |||
Balance, end of period | $ 2,415 | $ 2,571 | $ 2,595 | $ 2,336 | $ 2,300 | |||
Allowance for Credit Losses Ratios: | ||||||||
Allowance for credit losses/loans | 1.10 % | 1.08 % | 1.09 % | 1.08 % | 1.07 % | |||
Allowance for credit losses/nonperforming loans | 268.38 % | 332.74 % | 591.93 % | 412.77 % | 596.62 % | |||
Net charge-offs/average loans (annualized) | 0.11 % | 0.13 % | 0.17 % | 0.33 % | 0.10 % | |||
Dogwood State Bank | ||||||||||||||||||||
Net Interest Margin Analysis | ||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||
March 31, 2025 | December 31, 2024 | March 31, 2024 | ||||||||||||||||||
(Dollars in thousands) | Average | Income/ Expense | Yield/ | Average Balance | Income/ Expense | Yield/ Rate | Average | Income/ Expense | Yield/ | |||||||||||
Interest-Earning Assets: | ||||||||||||||||||||
Loans | $ 1,832,242 | $ 30,837 | 6.83 % | $ 1,772,350 | $ 30,524 | 6.85 % | $ 1,125,595 | $ 18,116 | 6.47 % | |||||||||||
Investment securities | 181,864 | 1,783 | 3.98 % | 170,307 | 1,635 | 3.82 % | 131,250 | 1,029 | 3.15 % | |||||||||||
Interest-earning deposits with banks | 74,364 | 706 | 3.85 % | 93,153 | 1,005 | 4.29 % | 78,807 | 975 | 4.98 % | |||||||||||
Total interest-earning assets | 2,088,470 | 33,326 | 6.47 % | 2,035,810 | 33,164 | 6.48 % | 1,335,652 | 20,120 | 6.06 % | |||||||||||
Non interest-earning assets | 131,933 | 129,999 | 66,568 | |||||||||||||||||
Total assets | $ 2,220,403 | $ 2,165,809 | $ 1,402,220 | |||||||||||||||||
Interest-Bearing Liabilities: | ||||||||||||||||||||
Interest-bearing demand | $ 148,704 | $ 332 | 0.91 % | $ 175,373 | $ 468 | 1.06 % | $ 124,309 | $ 293 | 0.95 % | |||||||||||
Savings and money market | 749,088 | 5,180 | 2.80 % | 759,932 | 6,006 | 3.14 % | 601,319 | 6,110 | 4.09 % | |||||||||||
Time | 486,447 | 4,905 | 4.09 % | 395,409 | 4,489 | 4.52 % | 170,964 | 1,967 | 4.63 % | |||||||||||
Total interest-bearing deposits | 1,384,239 | 10,417 | 3.05 % | 1,330,714 | 10,963 | 3.28 % | 896,592 | 8,370 | 3.75 % | |||||||||||
FHLB advances | 94,934 | 1,024 | 4.37 % | 68,177 | 797 | 4.65 % | 27,253 | 368 | 5.43 % | |||||||||||
Subordinated debt | 9,735 | 209 | 8.71 % | 9,659 | 209 | 0.00 % | - | - | 0.00 % | |||||||||||
Lease obligations | 12,157 | 63 | 2.10 % | 10,404 | 66 | 2.52 % | 11,086 | 70 | 2.54 % | |||||||||||
Total interest-bearing liabilities | 1,501,065 | 11,713 | 3.16 % | 1,418,954 | 12,035 | 3.37 % | 934,931 | 8,808 | 3.79 % | |||||||||||
Non-interest bearing deposits | 463,954 | 496,016 | 288,518 | |||||||||||||||||
Other liabilities | 19,807 | 22,497 | 12,237 | |||||||||||||||||
Shareholders' equity | 235,577 | 228,342 | 166,534 | |||||||||||||||||
Total liabilities and shareholders' equity | $ 2,220,403 | $ 2,165,809 | $ 1,402,220 | |||||||||||||||||
Net interest income and interest rate spread | $ 21,613 | 3.31 % | $ 21,129 | 3.11 % | $ 11,314 | 2.27 % | ||||||||||||||
Net interest margin | 4.20 % | 4.13 % | 3.41 % | |||||||||||||||||
Cost of funds | 2.42 % | 2.50 % | 2.90 % | |||||||||||||||||
Cost of deposits | 2.29 % | 2.39 % | 2.84 % | |||||||||||||||||
Dogwood State Bank | ||||||||
Non-GAAP Reconciliation | ||||||||
Quarter Ended | ||||||||
(In thousands, except per share data) | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |||
Net income and EPS: | ||||||||
Net income (loss) (GAAP) | $ 7,359 | $ 6,161 | $ (4,780) | $ 2,654 | $ 1,838 | |||
Adjust for provision on acquired non-PCD loans, net of tax | - | 4,111 | - | - | ||||
Adjust for merger and acquisition expenses, net of tax | 99 | 458 | 7,039 | 433 | 738 | |||
Adjusted net income (non-GAAP) | $ 7,458 | $ 6,619 | $ 6,369 | $ 3,087 | $ 2,576 | |||
Weighted average common shares outstanding | ||||||||
Basic | 18,502 | 18,488 | 17,301 | 14,905 | 14,377 | |||
Diluted | 18,989 | 18,978 | 17,810 | 15,480 | 15,075 | |||
EPS (GAAP) | ||||||||
Basic | $ 0.40 | $ 0.33 | $ (0.28) | $ 0.18 | $ 0.13 | |||
Diluted | 0.39 | 0.32 | (0.27) | 0.17 | 0.12 | |||
Adjusted EPS (non-GAAP) | ||||||||
Basic | $ 0.40 | $ 0.36 | $ 0.37 | $ 0.21 | $ 0.18 | |||
Diluted | 0.39 | 0.35 | 0.36 | 0.20 | 0.17 | |||
PPNR: | ||||||||
Net income (loss) (GAAP) | $ 7,359 | $ 6,161 | $ (4,780) | $ 2,654 | $ 1,838 | |||
Add: | ||||||||
Provision for credit losses | 1,118 | 1,116 | 5,857 | 2,017 | 921 | |||
Income tax expense (benefit) | 2,161 | 1,812 | (1,445) | 811 | 588 | |||
PPNR (non-GAAP) | 10,638 | 9,089 | (368) | 5,482 | 3,347 | |||
Add: merger and acquisition expenses | 128 | 595 | 9,139 | 562 | 958 | |||
Adjusted PPNR (non-GAAP) | $ 10,766 | $ 9,684 | $ 8,771 | $ 6,044 | $ 4,305 | |||
ROA: | ||||||||
Net income (loss) (GAAP) | $ 7,359 | $ 6,161 | $ (4,780) | $ 2,654 | $ 1,838 | |||
Adjusted net income (non-GAAP) | 7,458 | 6,619 | 6,369 | 3,087 | 2,576 | |||
Average assets | $ 2,220,403 | $ 2,165,809 | $ 1,954,902 | $ 1,494,353 | $ 1,402,220 | |||
ROA | 1.34 % | 1.13 % | -0.97 % | 0.71 % | 0.53 % | |||
Adjusted ROA (non-GAAP) | 1.36 % | 1.22 % | 1.30 % | 0.83 % | 0.74 % | |||
ROE and ROTCE: | ||||||||
Net income (loss) (GAAP) | $ 7,359 | $ 6,161 | $ (4,780) | $ 2,654 | $ 1,838 | |||
Adjusted net income (non-GAAP) | 7,458 | 6,619 | 6,369 | 3,087 | 2,576 | |||
Average shareholders' equity (GAAP) | 235,577 | 228,342 | 209,674 | 173,356 | 166,534 | |||
Less: average goodwill and other intangible assets, net | 22,922 | 23,426 | 18,234 | 7,018 | 7,027 | |||
Average tangible common equity (non-GAAP) | 212,655 | 204,916 | 191,440 | 166,338 | 159,507 | |||
ROE | 12.67 % | 10.73 % | -9.07 % | 6.16 % | 4.44 % | |||
Adjusted ROE (non-GAAP) | 12.84 % | 11.53 % | 12.09 % | 7.16 % | 6.22 % | |||
ROTCE (non-GAAP) | 14.03 % | 11.96 % | -9.93 % | 6.42 % | 4.63 % | |||
Adjusted ROTCE (non-GAAP) | 14.22 % | 12.85 % | 13.24 % | 7.46 % | 6.50 % | |||
Efficiency Ratio: | ||||||||
Non-interest expense (GAAP) | $ 15,753 | $ 15,779 | $ 22,723 | $ 10,470 | $ 10,815 | |||
Less: merger and acquisition expenses | 128 | 595 | 9,139 | 562 | 958 | |||
Adjusted non-interest expense (non-GAAP) | 15,625 | 15,184 | 13,584 | 9,908 | 9,857 | |||
Net interest income | 21,613 | 21,129 | 18,157 | 12,521 | 11,312 | |||
Non-interest income | 4,778 | 3,739 | 4,198 | 3,431 | 2,850 | |||
Total revenue | 26,391 | 24,868 | 22,355 | 15,952 | 14,162 | |||
Efficiency ratio (non-interest expense / total revenue) | 59.69 % | 63.45 % | 101.65 % | 65.63 % | 76.37 % | |||
Adjusted efficiency ratio (non-GAAP) | 59.21 % | 61.06 % | 60.76 % | 62.11 % | 69.60 % | |||
Tangible Book Value per Share and Tangible Common Equity Ratio: | ||||||||
Shareholders' equity (GAAP) | $ 238,488 | $ 230,189 | $ 225,242 | $ 174,968 | $ 169,471 | |||
Less: goodwill and other intangible assets, net | 22,479 | 23,145 | 23,743 | 7,016 | 7,020 | |||
Tangible common equity (non-GAAP) | 216,009 | 207,044 | 201,499 | 167,952 | 162,451 | |||
Common shares outstanding | 19,013 | 18,976 | 18,980 | 15,541 | 15,020 | |||
Book value per share | $ 12.54 | $ 12.13 | $ 11.87 | $ 11.26 | $ 11.28 | |||
Tangible book value per share (non-GAAP) | 11.36 | 10.91 | 10.62 | 10.81 | 10.82 | |||
Total assets (GAAP) | $ 2,293,903 | $ 2,211,170 | $ 2,214,896 | $ 1,510,751 | $ 1,448,508 | |||
Less: goodwill and other intangible assets, net | 22,479 | 23,145 | 23,743 | 7,016 | 7,020 | |||
Tangible assets (non-GAAP) | 2,271,424 | 2,188,025 | 2,191,153 | 1,503,735 | 1,441,488 | |||
Tangible common equity to tangible assets (non-GAAP) | 9.51 % | 9.46 % | 9.20 % | 11.17 % | 11.27 % | |||
SOURCE Dogwood State Bank
