The Company’s Board of Directors declared a quarterly cash dividend of
“We reported another quarter of core loan growth and our ongoing outreach efforts to existing clients and prospects has produced a robust loan pipeline that we expect to recognize in the coming quarters,” stated
Over the last two years, the Company was an active participant in the SBA PPP, resulting in over
“Higher than typical liquidity levels, primarily due to larger deposit balances and the resulting effect on the mix of our earning assets, continued to pressure our net interest margin,” said Keller. “However, as PPP loan balances run off and we recognize the benefit of the
“Due to rebounding economic activity, especially in industry segments that were the most affected by the pandemic, and a
First Quarter 2022 Financial Highlights (at or for the period ended
- Net income was
$1.63 million in the first quarter of 2022, compared to$1.68 million in the first quarter a year ago, and$1.75 million in the preceding quarter. Earnings per share was$0.18 in the first quarter of 2022, compared to$0.20 in the prior quarter, and$0.19 in the first quarter a year ago. - Total assets increased
$29.5 million , or 3.9%, to$791.6 million atMarch 31, 2022 , compared to$762.1 million a year earlier, and increased$76.0 million , or 10.6%, compared to$715.6 million three months earlier. Average assets for the quarter totaled$759.4 million , an increase of$74.2 million , or 10.8%, from the first quarter a year ago and an increase of$18.1 million , or 2.4%, compared with the prior quarter. - Net interest income, before the provision for loan losses, increased 6.7% to
$6.49 million in the first quarter of 2022, compared to$6.08 million in the first quarter a year ago. There was no provision for loan losses recorded in the first quarter of 2022, compared to a$250,000 provision for loan losses in the first quarter of 2021. - Non-interest income was
$180,000 during the first quarter of 2022, compared to$208,000 for the first quarter a year ago, and$226,000 in the fourth quarter of 2021. - Operating revenue (net interest income before the provision for loan losses plus non-interest income) increased 6.1% to
$6.67 million in the first quarter of 2021, compared to$6.29 million in the first quarter a year ago, and decreased 3.1% compared to$6.88 million in the fourth quarter of 2021. - Net interest margin for the first quarter was 3.58%, compared to 3.69% in the preceding quarter and 3.74% in the first quarter a year ago. The contraction in net interest margin in the first quarter of 2022 as compared to the prior quarter was largely due to the decrease in recognition of PPP origination fee income due to lower PPP loan forgiveness during the current quarter, compared to the prior quarter. Excluding all PPP-related income and balances, the net interest margin would have been 3.32% in the first quarter of 2022, and 3.35% in the fourth quarter of 2021. The average interest yield on non-PPP loans in the first quarter was 4.48%, compared to 4.56% in the prior quarter. The average cost of funds in the first quarter was 0.24%, a 1 basis point increase compared to the prior quarter and an 8 basis points decline compared to the prior year.
- Loans net of unearned income were
$521.7 million atMarch 31, 2022 , compared to$541.6 million a year ago, and$538.8 million three months earlier. AtMarch 31, 2022 , net non-PPP loans totaled$504.8 million , a 0.9% increase compared to$500.2 million atDecember 31, 2021 , and a 17.4% increase compared to$429.9 million atMarch 31, 2021 . In addition, atMarch 31, 2022 , the unused portion of credit commitments totaled$148.7 million compared to$139.4 million in the prior quarter and$96.0 million a year ago. - Total deposits increased
$36.9 million , or 5.6%, to$698.5 million atMarch 31, 2022 , compared to$661 .6 million a year ago and increased$88.3 million , or 14.5%, compared to$610.2 million three months earlier. Noninterest bearing demand deposit accounts decreased 5.3% compared to a year ago and represented 34.6% of total deposits. Savings, NOW and money market accounts increased 25.22% compared to a year ago and represented 54.4% of total deposits. CDs decreased 25.6% when compared to a year ago and comprised 11.0% of the total deposit portfolio, atMarch 31, 2022 . For the quarter, the overall Cost of Deposits was 24 basis points (“bp”) compared to 23 bp in the prior quarter, and 32 bp in the first quarter a year ago. - Asset quality remained exemplary with
$22,440 of nonperforming loans atMarch 31, 2022 , representing 0.004% of total loans. This compares to nonperforming loans at 0.005% of total loans atDecember 31, 2021 , and 0.021% atMarch 31, 2021 . - The allowance for loan losses was
$6.50 million , or 1.25% of total loans atMarch 31, 2022 , compared to$5.68 million , or 1.05% of total loans atMarch 31, 2021 . The allowance, as a percentage of non-guaranteed loans, was 1.31% atMarch 31, 2022 , compared to 1.36% a year ago. The allowance for loan losses reflects management’s assessment of the current economic environment. - Total equity increased 6.0% to
$67.0 million as ofMarch 31, 2022 , compared to a year ago. The Bank’s capital levels remained well aboveFDIC “Well Capitalized” standards as ofMarch 31, 2022 , with a Tier 1 Common Equity capital ratio of 12.07%; Total risk-based capital ratio of 13.23%; and Tier 1 leverage ratio of 9.10%. - Book value per common share totaled
$7.56 as ofMarch 31, 2022 , an increase of 5.0% from a year ago. - Declared a quarterly cash dividend of
$0.045 per share. The dividend is payableJune 6, 2022 to shareholders of record onMay 25, 2022 .
On
“We are proud to be one of only five banks and six credit unions in
For additional information on the ECIP Program please visit
https://home.treasury.gov/policy-issues/coronavirus/assistance-for-small-businesses/emergency-capital-investment-program
For additional information on the CDFI Rapid Response Program please visit
https://www.cdfifund.gov/programs-training/programs/rrp
About
Forward-Looking Statements
This release may contain forward-looking statements, such as, among others, statements about plans, expectations and goals concerning growth and improvement. Forward-looking statements are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, including the real estate market in
Contacts:
510-433-5404
wkeller@BankCBB.com
FINANCIAL TABLES TO FOLLOW:
UNAUDITED SUMMARY FINANCIAL STATEMENTS | |||||||||||||||||||||
(Dollars in thousands, except earnings per share) | |||||||||||||||||||||
INCOME STATEMENT | Three Months Ended | ||||||||||||||||||||
2022 | 2021 | Qtr over Qtr | 2021 | Qtr over Yr Ago Qtr | |||||||||||||||||
% Change | % Change | ||||||||||||||||||||
Interest income | $ | 6,900 | $ | 7,051 | -2.1 | % | $ | 6,574 | 5.0 | % | |||||||||||
Interest expense | 410 | 395 | 3.8 | % | 493 | -16.8 | % | ||||||||||||||
Net interest income before provision | 6,490 | 6,656 | -2.5 | % | 6,081 | 6.7 | % | ||||||||||||||
Provision for Loan Losses | - | 200 | -100.0 | % | 250 | -100.0 | % | ||||||||||||||
Net interest income after provision | 6,490 | 6,456 | 0.5 | % | 5,831 | 11.3 | % | ||||||||||||||
Non-interest income | 180 | 226 | -20.4 | % | 208 | -13.5 | % | ||||||||||||||
Non-interest expense | 4,361 | 4,192 | 4.0 | % | 3,665 | 19.0 | % | ||||||||||||||
Income before provision for income taxes | 2,309 | 2,490 | -7.3 | % | 2,374 | -2.7 | % | ||||||||||||||
Provision for income taxes | 683 | 736 | -7.2 | % | 691 | -1.2 | % | ||||||||||||||
Net income | $ | 1,626 | $ | 1,754 | -7.3 | % | $ | 1,683 | -3.4 | % | |||||||||||
Basic earnings per common share | $ | 0.18 | $ | 0.20 | -7.3 | % | $ | 0.19 | -4.5 | % | |||||||||||
Weighted average common shares outstanding | 8,871,052 | 8,871,052 | 8,765,089 | ||||||||||||||||||
Return on average assets | 0.87 | % | 0.94 | % | 0.97 | % | |||||||||||||||
Return on average common equity | 9.72 | % | 10.33 | % | 10.65 | % | |||||||||||||||
| |||||||||||||||||||||
UNAUDITED SUMMARY FINANCIAL STATEMENTS | |||||||||||||||||||||
(Dollars in thousands, except book value per share) | |||||||||||||||||||||
BALANCE SHEET | At Period End | ||||||||||||||||||||
2022 | 2021 | Qtr over Qtr | 2021 | Year over Year | |||||||||||||||||
ASSETS | % Change | % Change | |||||||||||||||||||
Total cash and investments | $ | 247,559 | $ | 164,326 | 50.7 | % | $ | 197,828 | 25.1 | % | |||||||||||
Loans, net of unearned income | 521,675 | 538,831 | -3.2 | % | 541,589 | -3.7 | % | ||||||||||||||
Loan loss reserve | (6,500 | ) | (6,281 | ) | 3.5 | % | (5,679 | ) | 14.5 | % | |||||||||||
Other assets | 28,823 | 18,678 | 54.3 | % | 28,336 | 1.7 | % | ||||||||||||||
Total Assets | $ | 791,557 | $ | 715,554 | 10.6 | % | $ | 762,074 | 3.9 | % | |||||||||||
LIABILITIES AND SHAREHOLDERS EQUITY | |||||||||||||||||||||
Non-interest bearing demand deposits | 241,902 | 237,541 | 1.8 | % | 255,310 | -5.3 | % | ||||||||||||||
Interest bearing deposits | 456,592 | 372,693 | 22.5 | % | 406,326 | 12.4 | % | ||||||||||||||
Total deposits | 698,494 | 610,234 | 14.5 | % | 661,636 | 5.6 | % | ||||||||||||||
Total borrowings and other liabilities | 26,021 | 37,287 | -30.2 | % | 37,216 | -30.1 | % | ||||||||||||||
Total Liabilities | $ | 724,515 | $ | 647,521 | 11.9 | % | $ | 698,852 | 3.7 | % | |||||||||||
Total equity | 67,042 | 68,033 | -1.5 | % | 63,222 | 6.0 | % | ||||||||||||||
Total Liabilities and Total Equity | $ | 791,557 | $ | 715,554 | 10.6 | % | $ | 762,074 | 3.9 | % | |||||||||||
Book value per common share | $ | 7.56 | $ | 7.67 | -1.5 | % | $ | 7.20 | 5.0 | % | |||||||||||
SELECTED FINANCIAL DATA | |||||||||||||
(In thousands of dollars, except for ratios and per share amounts) | |||||||||||||
Unaudited | |||||||||||||
At or for the Three Months Ended | |||||||||||||
2022 | 2021 | 2021 | |||||||||||
ASSET QUALITY RATIOS | |||||||||||||
Net (charge-offs) recoveries | $ | 220 | $ | - | $ | (268 | ) | ||||||
Net (charge-offs) recoveries to average loans | 0.042 | % | 0.000 | % | -0.051 | % | |||||||
Non-performing loans as a % of loans | 0.004 | % | 0.005 | % | 0.021 | % | |||||||
Non-performing assets as a % of assets | 0.003 | % | 0.003 | % | 0.015 | % | |||||||
Allowance for loan losses as a % of total loans | 1.25 | % | 1.17 | % | 1.05 | % | |||||||
Allowance for loan losses as a % of total unguaranteed loans | 1.31 | % | 1.28 | % | 1.36 | % | |||||||
Allowance for loan losses as a % of non-performing loans | 28966 | % | 23402 | % | 5069 | % | |||||||
AVERAGE BALANCE SHEET DATA | |||||||||||||
Average assets | $ | 759,409 | $ | 741,266 | $ | 685,225 | |||||||
Average total loans | $ | 525,647 | $ | 521,103 | $ | 522,595 | |||||||
Average total deposits | $ | 660,149 | $ | 644,639 | $ | 581,577 | |||||||
Average shareholders' equity | $ | 67,820 | $ | 67,395 | $ | 62,704 | |||||||
FINANCIAL RATIOSSTATISTICS | |||||||||||||
Return on average assets | 0.87 | % | 0.94 | % | 0.97 | % | |||||||
Return on average equity | 9.72 | % | 10.33 | % | 10.65 | % | |||||||
Net interest margin | 3.58 | % | 3.69 | % | 3.74 | % | |||||||
Efficiency ratio | 65.38 | % | 60.91 | % | 58.28 | % | |||||||
Source:
2022 GlobeNewswire, Inc., source