The Company’s fourth quarter operating results reflected: (1) increased net interest income largely due to increased accretion related to both reductions of purchased credit impaired loans and the Small Business Administration’s Paycheck Protection Program (SBA PPP) debt forgiveness; (2) higher loan loss provisions, primarily due to the impact of loan growth and economic uncertainty; (3) a continued robust refinancing market which led to an all-time high on gains on sale of mortgage loans; and (4) a modest increase in non-interest expenses due to branch closure costs and modestly higher impairment of mortgage servicing right assets, offset by lower compensation and a seasonal reduction in advertising.
Book value per share was
“The continued execution of our strategic priorities resulted in the following highlights; (1) a 13% increase in tangible book value, or
“Fourth quarter commercial activity accelerated across our markets where unemployment through November was below 5% in all markets and under 4% in select markets. As expected, COVID-19 deferrals remain concentrated in the hospitality segment where occupancy rates generally have been tracking with, or slightly better than, national averages depending on the property. We have been working with our clients as the pandemic persists by requiring additional support from the borrower in exchange for further deferral periods and expect the second PPP draws will be beneficial to this segment,” continued Bianchi.
- Stockholders’ equity as a percent of total assets increased to 9.74% from 9.70% during the quarter ended
December 31, 2020 . Tangible common equity as a percent of tangible assets (non-GAAP)5, increased to 7.67% from 7.57% during the quarter endedDecember 31, 2020 . - Return on average assets increased to 0.80% from 0.68% during the year ended
December 31, 2020 . Return on average equity increased to 8.29% from 6.59% during the year endedDecember 31, 2020 . Return on average tangible common equity5 (non-GAAP) increased to 11.04% from 8.98% during the year endedDecember 31, 2020 . - The Bank recorded provision for loan losses of
$2.5 million for the quarter endedDecember 31, 2020 , compared to$1.5 million for the quarter endedSeptember 30, 2020 . The increase was largely due to organic loan growth along with qualitative factor increases related to the potential adverse economic impact of COVID-19. The COVID-19 pandemic continued to result in reduced operating capacity and uncertainty regarding potential future revenue and cash flows for certain businesses, including bank borrowers. Economic conditions in our markets continued to improve during the last quarter of 2020. This has supported improving trends for businesses most impacted by the pandemic, but further improvements in their prospects will be dependent on the timing and efficacy of vaccinations, and related impact on consumer behavior and business activities. - As of
December 31, 2020 , the Bank’s COVID-19 related modifications under Section 4013 of the CARES Act, totaled$61 million , or 5% of gross loans versus$126.7 million , or 10% of gross loans atSeptember 30, 2020 . AtDecember 31, 2020 , hotel industry sector loans represent$51.6 million of the approved deferrals. The Bank has approximately$2.4 million of total payment deferrals expiring in the first quarter of 2021. - The sum of special mention and substandard loans decreased
$5.5 million to$35.2 million atDecember 31, 2020 from$40.7 million atSeptember 30, 2020 , a decrease of 13%. - The allowance for loan losses on originated loans, excluding PPP loans, increased to 1.77% at
December 31, 2020 from 1.65% atSeptember 30, 2020 . Since PPP loans are guaranteed by the SBA, they are excluded from this reserve calculation. Additionally, loans resulting from Bank acquisitions were effectively marked to market value at the time of their acquisition and were also excluded from this reserve calculation. The allowance for loan losses of$17.0 million , is allocated$14.8 million to the originated loan portfolio and$2.2 million to the acquired loan portfolio. - During the fourth quarter, the Bank closed three branch operations located at
Minnesota Lake, Minnesota ,Eau Claire, Wisconsin , andEleva, Wisconsin . These branch operations were consolidated into nearby branch locations. These closures resulted in pretax net branch closure costs of$165 thousand as presented in the “Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)” table. - Nonperforming assets continued to decline during the quarter ended
December 31, 2020 to$11.5 million from$14.9 million one quarter earlier. - On
November 30, 2020 , the Board of Directors approved a stock repurchase program. Under this program the Company may repurchase up to 557,728 shares of its common stock, or approximately 5% of the current outstanding shares. ThroughDecember 31, 2020 , the Company has repurchased approximately 98,000 shares under this new stock repurchase program.
Balance Sheet and Asset Quality
Total assets increased
Securities available for sale decreased
Loans receivable increased by
The allowance for loan losses increased to
Allowance for Loan Losses Percentages | ||||||||||||||||
(in thousands, except ratios) | ||||||||||||||||
Originated loans, net of deferred fees and costs | $ | 835,769 | $ | 777,340 | $ | 789,075 | $ | 762,127 | ||||||||
SBA PPP loans, net of deferred fees | 120,711 | 135,177 | 132,800 | — | ||||||||||||
Acquired loans, net of unamortized discount | 281,101 | 317,622 | 359,300 | 415,253 | ||||||||||||
Loans, end of period | $ | 1,237,581 | $ | 1,230,139 | $ | 1,281,175 | $ | 1,177,380 | ||||||||
SBA PPP loans, net of deferred fees | (120,711 | ) | (135,177 | ) | (132,800 | ) | — | |||||||||
Loans, net of SBA PPP loans and deferred fees | $ | 1,116,870 | $ | 1,094,962 | $ | 1,148,375 | $ | 1,177,380 | ||||||||
Allowance for loan losses allocated to originated loans | $ | 14,819 | $ | 12,809 | $ | 12,109 | $ | 9,551 | ||||||||
Allowance for loan losses allocated to other loans | 2,224 | 2,027 | 1,264 | 769 | ||||||||||||
Allowance for loan losses | $ | 17,043 | $ | 14,836 | $ | 13,373 | $ | 10,320 | ||||||||
Non-accretable difference on purchased credit impaired loans | $ | 1,087 | $ | 1,661 | $ | 3,355 | $ | 6,290 | ||||||||
ALL as a percentage of loans, end of period | 1.38 | % | 1.21 | % | 1.04 | % | 0.88 | % | ||||||||
ALL as a percentage of loans, net of SBA PPP loans and deferred fees | 1.53 | % | 1.35 | % | 1.16 | % | 0.88 | % | ||||||||
ALL allocated to originated loans as a percentage of originated loans, net of deferred fees and costs | 1.77 | % | 1.65 | % | 1.53 | % | 1.25 | % |
Nonperforming assets decreased 22.7% to
Substandard and special mention loans declined
(in thousands) | ||||||||||||||||||||
Special mention loan balances | $ | 6,672 | $ | 7,777 | $ | 19,958 | $ | 19,387 | $ | 10,856 | ||||||||||
Substandard loan balances | 28,541 | 32,922 | 35,911 | 38,393 | 39,892 | |||||||||||||||
Criticized loans, end of period | $ | 35,213 | $ | 40,699 | $ | 55,869 | $ | 57,780 | $ | 50,748 |
Deposits increased
Review of Operations
Net interest income was
2020, and
Net interest income and net interest margin with and without loan purchase accounting: (in thousands, except yields and rates) | ||||||||||||||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||||||||||||||
Net Interest Income | Net Interest Margin | Net Interest Income | Net Interest Margin | Net Interest Income | Net Interest Margin | Net Interest Income | Net Interest Margin | Net Interest Income | Net Interest Margin | |||||||||||||||||||||||||||
With loan purchase accretion | $ | 13,372 | 3.51 | % | $ | 11,909 | 3.11 | % | $ | 12,303 | 3.34 | % | $ | 12,671 | 3.64 | % | $ | 11,775 | 3.41 | % | ||||||||||||||||
Less non-accretable difference realized as interest from payoff of purchased credit impaired loans | (324 | ) | (0.08 | )% | (130 | ) | (0.03 | )% | (196 | ) | (0.05 | )% | (1,043 | ) | (0.30 | )% | (271 | ) | (0.08 | )% | ||||||||||||||||
Less accelerated accretion from payoff of certain PCI loans with transferred non-accretable differences | (872 | ) | (0.23 | )% | — | — | % | (99 | ) | (0.03 | )% | — | — | % | — | — | % | |||||||||||||||||||
Less scheduled accretion interest | (252 | ) | (0.07 | )% | (276 | ) | (0.07 | )% | (247 | ) | (0.07 | )% | (233 | ) | (0.07 | )% | (233 | ) | (0.07 | )% | ||||||||||||||||
Without loan purchase accretion | $ | 11,924 | 3.13 | % | $ | 11,503 | 3.01 | % | $ | 11,761 | 3.19 | % | $ | 11,395 | 3.27 | % | $ | 11,271 | 3.26 | % | ||||||||||||||||
As noted above, the current quarter net interest margin was favorably impacted by reductions in purchased credit impaired loans and associated income realization. The Company realized
The Company continued to manage deposit interest rates. Various non-maturity deposit product yields were reduced and the Bank was able to lower the cost of certificate of deposit accounts as the interest rates on new and renewed certificates of deposit were lower than the previous quarter. Additionally, the Bank relied less on higher-costing certificates of deposit. These actions reduced the cost of deposits by 9 basis points in the quarter which more than offset the full quarter impact of the third quarter’s subordinated debt issuance. The Bank has
Loan loss provisions were
Non-interest income decreased modestly in the quarter ended
Total non-interest expense increased by
Provisions for income taxes remained unchanged in the fourth quarter at
These financial results are preliminary until the Form 10-K is filed in
About the Company
branch locations. Its primary markets include the
Cautionary Statement Regarding Forward-Looking Statements
Certain statements contained in this release are considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified using forward-looking words or phrases such as “anticipate,” “believe,” “could,” “expect,” “estimates,” “intend,” “may,” “preliminary,” “planned,” “potential,” “should,” “will,” “would” or the negative of those terms or other words of similar meaning. Such forward-looking statements in this release are inherently subject to many uncertainties arising in the operations and business environment of the Company and the Bank. These uncertainties include the conditions in the financial markets and economic conditions generally; adverse impacts to the Company or Bank arising from the COVID-19 pandemic; the possibility of a deterioration in the residential real estate markets; interest rate risk; lending risk; the sufficiency of loan allowances; changes in the fair value or ratings downgrades of our securities; competitive pressures among depository and other financial institutions; our ability to maintain our reputation; our ability to realize the benefits of net deferred tax assets; our ability to maintain or increase our market share; acts of terrorism and political or military actions by
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, such as net income as adjusted, net income as adjusted per share, tangible book value, tangible book value per share, tangible common equity as a percent of tangible assets, return on average tangible common equity and return on average tangible common equity as adjusted which management believes may be helpful in understanding the Company’s results of operations or financial position and comparing results over different periods.
Net income as adjusted and net income as adjusted per share are non-GAAP measures that eliminates the impact of certain expenses such as acquisition and branch closure costs and related data processing termination fees, legal costs, severance pay, accelerated depreciation expense and lease termination fees, the gain on sale of branch deposits and fixed assets and the net impact of the Tax Cuts and Jobs Act of 2017, which management believes enhances investors’ ability to better understand the underlying business performance and trends related to core business activities. Merger related charges represent expenses to either satisfy contractual obligations of acquired entities without any useful benefit to the Company or to convert and consolidate customer records onto the Company platforms. These costs are unique to each transaction based on the contracts in existence at the merger date. Tangible book value, tangible book value per share, tangible common equity as a percent of tangible assets and return on average tangible common equity are non-GAAP measures that eliminate the impact of preferred stock equity, goodwill and intangible assets on our financial position. Management believes these measures are useful in assessing the strength of our financial position.
Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other banks and financial institutions.
Contact:
(715)-836-9994
Consolidated Balance Sheets (in thousands, except shares and per share data) | ||||||||||||
(unaudited) | (unaudited) | (audited) | ||||||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | 119,440 | $ | 115,474 | $ | 55,840 | ||||||
Other interest-bearing deposits | 3,752 | 3,752 | 4,744 | |||||||||
Securities available for sale “AFS” | 144,233 | 150,908 | 180,119 | |||||||||
Securities held to maturity “HTM” | 43,551 | 16,927 | 2,851 | |||||||||
Equity securities with readily determinable fair value | 200 | 187 | 246 | |||||||||
Other investments | 14,948 | 15,075 | 15,005 | |||||||||
Loans receivable | 1,237,581 | 1,230,139 | 1,177,380 | |||||||||
Allowance for loan losses | (17,043 | ) | (14,836 | ) | (10,320 | ) | ||||||
Loans receivable, net | 1,220,538 | 1,215,303 | 1,167,060 | |||||||||
Loans held for sale | 3,075 | 4,938 | 5,893 | |||||||||
Mortgage servicing rights | 3,252 | 3,498 | 4,282 | |||||||||
Office properties and equipment, net | 21,165 | 21,607 | 21,106 | |||||||||
Accrued interest receivable | 5,652 | 5,829 | 4,738 | |||||||||
Intangible assets | 5,494 | 5,893 | 7,587 | |||||||||
31,498 | 31,498 | 31,498 | ||||||||||
Foreclosed and repossessed assets, net | 197 | 812 | 1,460 | |||||||||
Bank owned life insurance (“BOLI”) | 23,684 | 23,514 | 23,063 | |||||||||
Other assets | 8,416 | 7,378 | 5,757 | |||||||||
TOTAL ASSETS | $ | 1,649,095 | $ | 1,622,593 | $ | 1,531,249 | ||||||
Liabilities and Stockholders’ Equity | ||||||||||||
Liabilities: | ||||||||||||
Deposits | $ | 1,295,256 | $ | 1,270,778 | $ | 1,195,702 | ||||||
123,498 | 124,491 | 130,971 | ||||||||||
Other borrowings | 58,328 | 58,297 | 43,560 | |||||||||
Other liabilities | 11,449 | 11,704 | 10,463 | |||||||||
Total liabilities | 1,488,531 | 1,465,270 | 1,380,696 | |||||||||
Stockholders’ equity: | ||||||||||||
Common stock— authorized 30,000,000; 11,056,349; 11,154,645 and 11,266,954 shares issued and outstanding, respectively | 111 | 112 | 113 | |||||||||
Additional paid-in capital | 126,704 | 127,778 | 128,856 | |||||||||
Retained earnings | 32,809 | 29,239 | 22,517 | |||||||||
Unearned deferred compensation | (550 | ) | (710 | ) | (462 | ) | ||||||
Accumulated other comprehensive income (loss) | 1,490 | 904 | (471 | ) | ||||||||
Total stockholders’ equity | 160,564 | 157,323 | 150,553 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,649,095 | $ | 1,622,593 | $ | 1,531,249 | ||||||
Note: Certain items previously reported were reclassified for consistency with the current presentation. | ||||||||||||
Consolidated Statements of Operations (in thousands, except per share data) | ||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
2020 (unaudited) | 2020 (unaudited) | 2019 (unaudited) | 2020 (unaudited) | 2019 (audited) | ||||||||||||||||
Interest and dividend income: | ||||||||||||||||||||
Interest and fees on loans | $ | 15,463 | $ | 14,154 | $ | 14,611 | $ | 59,763 | $ | 54,647 | ||||||||||
Interest on investments | 1,052 | 1,064 | 1,535 | 4,764 | 5,776 | |||||||||||||||
Total interest and dividend income | 16,515 | 15,218 | 16,146 | 64,527 | 60,423 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Interest on deposits | 1,958 | 2,255 | 3,284 | 10,000 | 12,174 | |||||||||||||||
Interest on FHLB and FRB borrowed funds | 428 | 430 | 508 | 1,814 | 2,721 | |||||||||||||||
Interest on other borrowed funds | 757 | 624 | 579 | 2,458 | 2,015 | |||||||||||||||
Total interest expense | 3,143 | 3,309 | 4,371 | 14,272 | 16,910 | |||||||||||||||
Net interest income before provision for loan losses | 13,372 | 11,909 | 11,775 | 50,255 | 43,513 | |||||||||||||||
Provision for loan losses | 2,500 | 1,500 | 1,400 | 7,750 | 3,525 | |||||||||||||||
Net interest income after provision for loan losses | 10,872 | 10,409 | 10,375 | 42,505 | 39,988 | |||||||||||||||
Non-interest income: | ||||||||||||||||||||
Service charges on deposit accounts | 496 | 431 | 612 | 1,832 | 2,368 | |||||||||||||||
Interchange income | 520 | 556 | 468 | 2,029 | 1,735 | |||||||||||||||
Loan servicing income | 1,014 | 1,144 | 772 | 4,158 | 2,674 | |||||||||||||||
Gain on sale of loans | 2,108 | 1,987 | 902 | 6,693 | 2,462 | |||||||||||||||
Loan fees and service charges | 342 | 320 | 285 | 1,383 | 1,145 | |||||||||||||||
Insurance commission income | — | — | 161 | 475 | 734 | |||||||||||||||
Net gains (losses) on investment securities | 13 | (1 | ) | 120 | 110 | 271 | ||||||||||||||
Net gain (loss) on sale of branch | — | — | — | 432 | 2,295 | |||||||||||||||
Net gain (loss) on sale of acquired business lines | — | 180 | — | — | — | |||||||||||||||
Settlement proceeds | — | — | — | 131 | — | |||||||||||||||
Other | 277 | 445 | 464 | 1,205 | 1,291 | |||||||||||||||
Total non-interest income | 4,770 | 5,062 | 3,784 | 18,448 | 14,975 | |||||||||||||||
Non-interest expense: | ||||||||||||||||||||
Compensation and related benefits | 5,440 | 5,538 | 5,720 | 22,321 | 20,325 | |||||||||||||||
Occupancy | 1,017 | 993 | 972 | 3,915 | 3,697 | |||||||||||||||
Office | 502 | 532 | 539 | 2,152 | 2,188 | |||||||||||||||
Data processing | 1,210 | 1,145 | 985 | 4,375 | 3,938 | |||||||||||||||
Amortization of intangible assets | 399 | 399 | 412 | 1,622 | 1,496 | |||||||||||||||
Mortgage servicing rights expense | 720 | 603 | 286 | 3,050 | 1,108 | |||||||||||||||
Advertising, marketing and public relations | 165 | 260 | 240 | 967 | 1,214 | |||||||||||||||
148 | 188 | (60 | ) | 584 | 258 | |||||||||||||||
Professional services | 438 | 434 | 496 | 1,829 | 2,457 | |||||||||||||||
Gains (losses) on repossessed assets, net | (64 | ) | (105 | ) | 18 | (259 | ) | (125 | ) | |||||||||||
Other | 851 | 737 | 820 | 3,117 | 6,130 | |||||||||||||||
Total non-interest expense | 10,826 | 10,724 | 10,428 | 43,673 | 42,686 | |||||||||||||||
Income before provision for income taxes | 4,816 | 4,747 | 3,731 | 17,280 | 12,277 | |||||||||||||||
Provision for income taxes | 1,246 | 1,267 | 562 | 4,555 | 2,814 | |||||||||||||||
Net income attributable to common stockholders | $ | 3,570 | $ | 3,480 | $ | 3,169 | $ | 12,725 | $ | 9,463 | ||||||||||
Per share information: | ||||||||||||||||||||
Basic earnings | $ | 0.32 | $ | 0.31 | $ | 0.28 | $ | 1.14 | $ | 0.85 | ||||||||||
Diluted earnings | $ | 0.32 | $ | 0.31 | $ | 0.28 | $ | 1.14 | $ | 0.85 | ||||||||||
Cash dividends paid | $ | — | $ | — | $ | — | $ | 0.21 | $ | 0.20 | ||||||||||
Book value per share at end of period | $ | 14.52 | $ | 14.10 | $ | 13.36 | $ | 14.52 | $ | 13.36 | ||||||||||
Tangible book value per share at end of period (non-GAAP) | $ | 11.18 | $ | 10.75 | $ | 9.89 | $ | 11.18 | $ | 9.89 | ||||||||||
Note: Certain items previously reported were reclassified for consistency with the current presentation. | ||||||||||||||||||||
Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP) (in thousands, except per share data) | ||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
GAAP pretax income | $ | 4,816 | $ | 4,747 | $ | 3,731 | $ | 17,280 | $ | 12,277 | ||||||||||
Merger related costs | — | — | 104 | — | 3,880 | |||||||||||||||
Branch closure costs (1) | 165 | — | — | 165 | 15 | |||||||||||||||
Audit and Financial Reporting (2) | — | — | — | — | 358 | |||||||||||||||
Net gain on sale of branch (3) | — | — | — | — | (2,295 | ) | ||||||||||||||
Net gain on sale of acquired business lines (4) | — | (180 | ) | — | (432 | ) | — | |||||||||||||
Settlement proceeds (5) | — | — | — | (131 | ) | — | ||||||||||||||
Pretax income as adjusted (6) | 4,981 | 4,567 | 3,835 | 16,882 | 14,235 | |||||||||||||||
Provision for income tax on net income as adjusted (7) | 1,290 | 1,219 | 579 | 4,457 | 3,260 | |||||||||||||||
Tax impact of certain acquired BOLI policies (8) | — | — | 300 | — | 300 | |||||||||||||||
Total Provision for income tax | 1,290 | 1,219 | 879 | 4,457 | 3,560 | |||||||||||||||
Net income as adjusted after income taxes (non-GAAP) (6) | $ | 3,691 | $ | 3,348 | $ | 2,956 | $ | 12,425 | $ | 10,675 | ||||||||||
GAAP diluted earnings per share, net of tax | $ | 0.32 | $ | 0.31 | $ | 0.28 | $ | 1.14 | $ | 0.85 | ||||||||||
Merger related costs, net of tax | — | — | 0.01 | — | 0.27 | |||||||||||||||
Branch closure costs, net of tax | 0.01 | — | — | 0.01 | — | |||||||||||||||
Audit and Financial Reporting | — | — | — | — | 0.02 | |||||||||||||||
Net gain on sale of branch | — | — | — | — | (0.15 | ) | ||||||||||||||
Tax impact of certain acquired BOLI policies | — | — | (0.03 | ) | (0.03 | ) | ||||||||||||||
Net gain on sale of acquired business lines | — | (0.01 | ) | — | (0.03 | ) | — | |||||||||||||
Settlement proceeds | — | — | — | (0.01 | ) | — | ||||||||||||||
Diluted earnings per share, as adjusted, net of tax (non-GAAP) | $ | 0.33 | $ | 0.30 | $ | 0.26 | $ | 1.11 | $ | 0.96 | ||||||||||
Average diluted shares outstanding | 11,128,628 | 11,155,337 | 11,275,961 | 11,161,811 | 11,121,435 |
(1) Branch closure costs include severance pay recorded in compensation and benefits, accelerated depreciation expense and lease termination fees included in occupancy and other costs included in other non-interest expense in the consolidated statement of operations.
(2) Audit and financial reporting costs include additional audit and professional fees related to the change in our year end from
(3) Gain on sale of branch resulted from the sale of our sole
(4) Gain on sale of acquired business lines resulted from (1) the sale of
(5) Settlement proceeds includes litigation income from a JP Morgan Residential Mortgage Backed Security (RMBS) claim. This distribution represents a supplement to the proceeds received in
(6) Net income as adjusted is a non-GAAP measure that management believes enhances the market’s ability to assess the underlying business performance and trends related to core business activities.
(7) Provision for income tax on net income as adjusted is calculated at our effective tax rate for each respective period presented.
(8) Tax impact of certain BOLI policies acquired from
Loan Composition (in thousands) | 2020 | 2020 | 2020 | 2019 | ||||||||||||
Originated Loans: | ||||||||||||||||
Commercial/Agricultural real estate: | ||||||||||||||||
Commercial real estate | $ | 351,113 | $ | 322,028 | $ | 314,390 | $ | 302,546 | ||||||||
Agricultural real estate | 31,741 | 32,530 | 35,138 | 34,026 | ||||||||||||
Multi-family real estate | 112,731 | 100,148 | 90,617 | 71,877 | ||||||||||||
Construction and land development | 91,241 | 80,992 | 94,856 | 71,467 | ||||||||||||
C&I/Agricultural operating: | ||||||||||||||||
Commercial and industrial | 95,290 | 79,959 | 80,369 | 89,730 | ||||||||||||
Agricultural operating | 24,457 | 24,324 | 25,813 | 20,717 | ||||||||||||
Residential mortgage: | ||||||||||||||||
Residential mortgage | 86,283 | 90,100 | 95,664 | 108,619 | ||||||||||||
Purchased HELOC loans | 6,260 | 6,547 | 6,861 | 8,407 | ||||||||||||
Consumer installment: | ||||||||||||||||
Originated indirect paper | 25,851 | 28,535 | 32,031 | 39,585 | ||||||||||||
Other consumer | 12,056 | 13,221 | 14,175 | 15,546 | ||||||||||||
Originated loans before SBA PPP loans | 837,023 | 778,384 | 789,914 | 762,520 | ||||||||||||
SBA PPP loans | 123,702 | 139,166 | 137,330 | — | ||||||||||||
Total originated loans | $ | 960,725 | $ | 917,550 | $ | 927,244 | $ | 762,520 | ||||||||
Acquired Loans: | ||||||||||||||||
Commercial/Agricultural real estate: | ||||||||||||||||
Commercial real estate | $ | 156,562 | $ | 178,645 | $ | 195,335 | $ | 211,913 | ||||||||
Agricultural real estate | 37,054 | 40,613 | 43,054 | 51,337 | ||||||||||||
Multi-family real estate | 9,421 | 9,520 | 13,022 | 15,131 | ||||||||||||
Construction and land development | 7,276 | 8,346 | 15,276 | 14,943 | ||||||||||||
C&I/Agricultural operating: | ||||||||||||||||
Commercial and industrial | 21,263 | 24,413 | 29,477 | 44,004 | ||||||||||||
Agricultural operating | 8,328 | 9,634 | 12,124 | 17,063 | ||||||||||||
Residential mortgage: | ||||||||||||||||
Residential mortgage | 45,103 | 51,754 | 56,760 | 67,713 | ||||||||||||
Consumer installment: | ||||||||||||||||
Other consumer | 1,157 | 1,409 | 1,639 | 2,640 | ||||||||||||
Total acquired loans | $ | 286,164 | $ | 324,334 | $ | 366,687 | $ | 424,744 | ||||||||
Total Loans: | ||||||||||||||||
Commercial/Agricultural real estate: | ||||||||||||||||
Commercial real estate | $ | 507,675 | $ | 500,673 | $ | 509,725 | $ | 514,459 | ||||||||
Agricultural real estate | 68,795 | 73,143 | 78,192 | 85,363 | ||||||||||||
Multi-family real estate | 122,152 | 109,668 | 103,639 | 87,008 | ||||||||||||
Construction and land development | 98,517 | 89,338 | 110,132 | 86,410 | ||||||||||||
C&I/Agricultural operating: | ||||||||||||||||
Commercial and industrial | 116,553 | 104,372 | 109,846 | 133,734 | ||||||||||||
Agricultural operating | 32,785 | 33,958 | 37,937 | 37,780 | ||||||||||||
Residential mortgage: | ||||||||||||||||
Residential mortgage | 131,386 | 141,854 | 152,424 | 176,332 | ||||||||||||
Purchased HELOC loans | 6,260 | 6,547 | 6,861 | 8,407 | ||||||||||||
Consumer installment: | ||||||||||||||||
Originated indirect paper | 25,851 | 28,535 | 32,031 | 39,585 | ||||||||||||
Other consumer | 13,213 | 14,630 | 15,814 | 18,186 | ||||||||||||
Gross loans before SBA PPP loans | 1,123,187 | 1,102,718 | 1,156,601 | 1,187,264 | ||||||||||||
SBA PPP loans | 123,702 | 139,166 | 137,330 | — | ||||||||||||
Gross loans | $ | 1,246,889 | $ | 1,241,884 | $ | 1,293,931 | $ | 1,187,264 | ||||||||
Unearned net deferred fees and costs and loans in process | (4,245 | ) | (5,033 | ) | (5,369 | ) | (393 | ) | ||||||||
Unamortized discount on acquired loans | (5,063 | ) | (6,712 | ) | (7,387 | ) | (9,491 | ) | ||||||||
Total loans receivable | $ | 1,237,581 | $ | 1,230,139 | $ | 1,281,175 | $ | 1,177,380 |
Nonperforming Originated and Acquired Assets (in thousands, except ratios) | ||||||||||||||||
and Three Months Ended | and Three Months Ended | Three Months Ended | and Three Months Ended | |||||||||||||
Nonperforming assets: | ||||||||||||||||
Originated nonperforming assets: | ||||||||||||||||
Nonaccrual loans | $ | 3,649 | $ | 3,255 | $ | 3,951 | $ | 4,285 | ||||||||
Accruing loans past due 90 days or more | 415 | 698 | 1,455 | 946 | ||||||||||||
Total originated nonperforming loans (“NPL”) | 4,064 | 3,953 | 5,406 | 5,231 | ||||||||||||
Other real estate owned (“OREO”) | 63 | 352 | 270 | 441 | ||||||||||||
Other collateral owned | 41 | 56 | 42 | 28 | ||||||||||||
Total originated nonperforming assets (“NPAs”) | $ | 4,168 | $ | 4,361 | $ | 5,718 | $ | 5,700 | ||||||||
Acquired nonperforming assets: | ||||||||||||||||
Nonaccrual loans | $ | 7,098 | $ | 9,899 | $ | 10,836 | $ | 14,771 | ||||||||
Accruing loans past due 90 days or more | 171 | 252 | 425 | 158 | ||||||||||||
Total acquired nonperforming loans (“NPL”) | 7,269 | 10,151 | 11,261 | 14,929 | ||||||||||||
Other real estate owned (“OREO”) | 93 | 404 | 422 | 988 | ||||||||||||
Other collateral owned | — | — | — | 3 | ||||||||||||
Total acquired nonperforming assets (“NPAs”) | $ | 7,362 | $ | 10,555 | $ | 11,683 | $ | 15,920 | ||||||||
Total nonperforming assets (“NPAs”) | $ | 11,530 | $ | 14,916 | $ | 17,401 | $ | 21,620 | ||||||||
Loans, end of period | $ | 1,237,581 | $ | 1,230,139 | $ | 1,281,175 | $ | 1,177,380 | ||||||||
Total assets, end of period | $ | 1,649,095 | $ | 1,622,593 | $ | 1,607,514 | $ | 1,531,249 | ||||||||
Ratios: | ||||||||||||||||
Originated NPLs to total loans | 0.33 | % | 0.32 | % | 0.42 | % | 0.44 | % | ||||||||
Acquired NPLs to total loans | 0.59 | % | 0.83 | % | 0.88 | % | 1.27 | % | ||||||||
Originated NPAs to total assets | 0.25 | % | 0.27 | % | 0.36 | % | 0.37 | % | ||||||||
Acquired NPAs to total assets | 0.45 | % | 0.65 | % | 0.73 | % | 1.04 | % | ||||||||
Nonperforming Total Assets | ||||||||||||||||
(in thousand, except ratios) | ||||||||||||||||
and Three Months Ended | and Three Months Ended | and Three Months Ended | and Three Months Ended | |||||||||||||
Nonperforming assets: | ||||||||||||||||
Nonaccrual loans | ||||||||||||||||
Commercial real estate | $ | 827 | $ | 2,762 | $ | 3,221 | $ | 5,705 | ||||||||
Agricultural real estate | 5,084 | 5,252 | 5,979 | 7,568 | ||||||||||||
Commercial and industrial (“C&I”) | 357 | 853 | 1,306 | 1,850 | ||||||||||||
Agricultural operating | 1,872 | 1,651 | 1,496 | 1,702 | ||||||||||||
Residential mortgage | 2,451 | 2,536 | 2,666 | 2,063 | ||||||||||||
Consumer installment | 156 | 100 | 119 | 168 | ||||||||||||
Total nonaccrual loans | $ | 10,747 | $ | 13,154 | $ | 14,787 | $ | 19,056 | ||||||||
Accruing loans past due 90 days or more | 586 | 950 | 1,880 | 1,104 | ||||||||||||
Total nonperforming loans (“NPLs”) | 11,333 | 14,104 | 16,667 | 20,160 | ||||||||||||
Foreclosed and repossessed assets, net | 197 | 812 | 734 | 1,460 | ||||||||||||
Total nonperforming assets (“NPAs”) | $ | 11,530 | $ | 14,916 | $ | 17,401 | $ | 21,620 | ||||||||
Troubled Debt Restructurings (“TDRs”) | $ | 18,477 | $ | 19,778 | $ | 13,119 | $ | 12,594 | ||||||||
Nonaccrual TDRs | $ | 6,735 | $ | 7,199 | $ | 6,992 | $ | 7,198 | ||||||||
Loans, end of period | $ | 1,237,581 | $ | 1,230,139 | $ | 1,281,175 | $ | 1,177,380 | ||||||||
Total assets, end of period | $ | 1,649,095 | $ | 1,622,593 | $ | 1,607,514 | $ | 1,531,249 | ||||||||
Ratios: | ||||||||||||||||
NPLs to total loans | 0.92 | % | 1.15 | % | 1.30 | % | 1.71 | % | ||||||||
NPAs to total assets | 0.70 | % | 0.92 | % | 1.08 | % | 1.41 | % |
Deposit Composition (in thousands) | |||||||||||||||||
2020 | 2020 | 2020 | 2019 | ||||||||||||||
Non-interest bearing demand deposits | $ | 238,348 | $ | 229,217 | $ | 223,536 | $ | 168,157 | |||||||||
Interest bearing demand deposits | 301,764 | 279,648 | 270,116 | 223,102 | |||||||||||||
Savings accounts | 196,348 | 191,511 | 185,816 | 156,599 | |||||||||||||
Money market accounts | 245,549 | 246,651 | 242,536 | 246,430 | |||||||||||||
Certificate accounts | 313,247 | 323,751 | 350,193 | 401,414 | |||||||||||||
Total deposits | $ | 1,295,256 | $ | 1,270,778 | $ | 1,272,197 | $ | 1,195,702 |
Average balances, Interest Yields and Rates (in thousands, except yields and rates) | |||||||||||||||||||||||||||||||||
Three months ended 2020 | Three months ended 2020 | Three months ended 2019 | |||||||||||||||||||||||||||||||
Average Balance | Interest Income/ Expense | Average Yield/ Rate (1) | Average Balance | Interest Income/ Expense | Average Yield/ Rate (1) | Average Balance | Interest Income/ Expense | Average Yield/ Rate (1) | |||||||||||||||||||||||||
Average interest earning assets: | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 79,225 | $ | 21 | 0.11 | % | $ | 77,774 | $ | 18 | 0.09 | % | $ | 31,327 | $ | 122 | 1.55 | % | |||||||||||||||
Loans receivable | 1,240,895 | 15,463 | 4.96 | % | 1,258,224 | 14,154 | 4.48 | % | 1,136,330 | 14,611 | 5.10 | % | |||||||||||||||||||||
Interest bearing deposits | 3,752 | 23 | 2.44 | % | 3,752 | 23 | 2.44 | % | 4,904 | 30 | 2.43 | % | |||||||||||||||||||||
Investment securities (1) | 176,802 | 824 | 1.85 | % | 166,622 | 846 | 2.02 | % | 185,920 | 1,222 | 2.62 | % | |||||||||||||||||||||
Other investments | 15,015 | 184 | 4.88 | % | 15,145 | 177 | 4.65 | % | 14,209 | 161 | 4.50 | % | |||||||||||||||||||||
Total interest earning assets (1) | $ | 1,515,689 | $ | 16,515 | 4.33 | % | $ | 1,521,517 | $ | 15,218 | 3.98 | % | $ | 1,372,690 | $ | 16,146 | 4.67 | % | |||||||||||||||
Average interest bearing liabilities: | |||||||||||||||||||||||||||||||||
Savings accounts | $ | 187,474 | $ | 87 | 0.18 | % | $ | 183,381 | $ | 98 | 0.21 | % | $ | 152,841 | $ | 172 | 0.45 | % | |||||||||||||||
Demand deposits | 285,001 | 200 | 0.28 | % | 285,993 | 231 | 0.32 | % | 216,021 | 389 | 0.71 | % | |||||||||||||||||||||
Money market accounts | 243,631 | 206 | 0.34 | % | 255,160 | 280 | 0.44 | % | 210,398 | 565 | 1.07 | % | |||||||||||||||||||||
CD’s | 284,728 | 1,304 | 1.82 | % | 297,691 | 1,469 | 1.96 | % | 367,278 | 1,951 | 2.11 | % | |||||||||||||||||||||
IRA’s | 41,493 | 161 | 1.54 | % | 41,852 | 177 | 1.68 | % | 43,809 | 207 | 1.87 | % | |||||||||||||||||||||
Total deposits | $ | 1,042,327 | $ | 1,958 | 0.75 | % | $ | 1,064,077 | $ | 2,255 | 0.84 | % | $ | 990,347 | $ | 3,284 | 1.32 | % | |||||||||||||||
FHLB advances and other borrowings | 182,463 | 1,185 | 2.58 | % | 173,758 | 1,054 | 2.41 | % | 165,660 | 1,087 | 2.60 | % | |||||||||||||||||||||
Total interest bearing liabilities | $ | 1,224,790 | $ | 3,143 | 1.02 | % | $ | 1,237,835 | $ | 3,309 | 1.06 | % | $ | 1,156,007 | $ | 4,371 | 1.50 | % | |||||||||||||||
Net interest income | $ | 13,372 | $ | 11,909 | $ | 11,775 | |||||||||||||||||||||||||||
Interest rate spread | 3.31 | % | 2.92 | % | 3.17 | % | |||||||||||||||||||||||||||
Net interest margin (1) | 3.51 | % | 3.11 | % | 3.41 | % | |||||||||||||||||||||||||||
Average interest earning assets to average interest bearing liabilities | 1.24 | 1.23 | 1.19 | ||||||||||||||||||||||||||||||
(1) Fully taxable equivalent (FTE). The average yield on tax exempt securities is computed on a tax equivalent basis using a tax rate of 21% for the quarters ended | |||||||||||||||||||||||||||||||||
Twelve months ended | Twelve months ended | |||||||||||||||||||||
Average Balance | Interest Income/ Expense | Average Yield/ Rate (1) | Average Balance | Interest Income/ Expense | Average Yield/ Rate (1) | |||||||||||||||||
Average interest earning assets: | ||||||||||||||||||||||
Cash and cash equivalents | $ | 52,016 | $ | 162 | 0.31 | % | $ | 29,948 | $ | 672 | 2.24 | % | ||||||||||
Loans receivable | 1,234,732 | 59,763 | 4.84 | % | 1,074,952 | 54,647 | 5.08 | % | ||||||||||||||
Interest bearing deposits | 3,914 | 96 | 2.45 | % | 5,841 | 137 | 2.35 | % | ||||||||||||||
Investment securities (1) | 174,396 | 3,789 | 2.17 | % | 171,747 | 4,332 | 2.60 | % | ||||||||||||||
Other investments | 15,081 | 717 | 4.75 | % | 12,442 | 635 | 5.10 | % | ||||||||||||||
Total interest earning assets (1) | $ | 1,480,139 | $ | 64,527 | 4.36 | % | $ | 1,294,930 | $ | 60,423 | 4.68 | % | ||||||||||
Average interest bearing liabilities: | ||||||||||||||||||||||
Savings accounts | $ | 174,184 | $ | 435 | 0.25 | % | $ | 155,848 | $ | 651 | 0.42 | % | ||||||||||
Demand deposits | 268,311 | 1,065 | 0.40 | % | 204,296 | 1,677 | 0.82 | % | ||||||||||||||
Money market accounts | 244,632 | 1,446 | 0.59 | % | 182,103 | 1,988 | 1.09 | % | ||||||||||||||
CD’s | 316,264 | 6,325 | 2.00 | % | 352,924 | 7,114 | 2.02 | % | ||||||||||||||
IRA’s | 42,039 | 729 | 1.73 | % | 42,134 | 744 | 1.77 | % | ||||||||||||||
Total deposits | $ | 1,045,430 | $ | 10,000 | 0.96 | % | $ | 937,305 | $ | 12,174 | 1.30 | % | ||||||||||
FHLB advances and other borrowings | 186,724 | 4,272 | 2.29 | % | 156,885 | 4,736 | 3.02 | % | ||||||||||||||
Total interest bearing liabilities | $ | 1,232,154 | $ | 14,272 | 1.16 | % | $ | 1,094,190 | $ | 16,910 | 1.55 | % | ||||||||||
Net interest income | $ | 50,255 | $ | 43,513 | ||||||||||||||||||
Interest rate spread | 3.20 | % | 3.13 | % | ||||||||||||||||||
Net interest margin (1) | 3.40 | % | 3.37 | % | ||||||||||||||||||
Average interest earning assets to average interest bearing liabilities | 1.20 | 1.18 | ||||||||||||||||||||
(1) Fully taxable equivalent (FTE). The average yield on tax exempt securities is computed on a tax equivalent basis using a tax rate of 21% for the twelve months ended | ||||||||||||||||||||||
The following table reports key financial metric ratios based on a net income and net income as adjusted basis:
Three Months Ended | Twelve Months Ended | ||||||||||||||
2020 | 2019 | ||||||||||||||
Ratios based on net income: | |||||||||||||||
Return on average assets (annualized) | 0.87 | % | 0.85 | % | 0.84 | % | 0.80 | % | 0.68 | % | |||||
Return on average equity (annualized) | 8.93 | % | 8.93 | % | 8.41 | % | 8.29 | % | 6.59 | % | |||||
Return on average tangible common equity5 (annualized) | 11.67 | % | 11.79 | % | 11.45 | % | 11.04 | % | 8.98 | % | |||||
Efficiency ratio | 60 | % | 63 | % | 67 | % | 64 | % | 73 | % | |||||
Net interest margin with loan purchase accretion | 3.51 | % | 3.11 | % | 3.41 | % | 3.40 | % | 3.37 | % | |||||
Net interest margin without loan purchase accretion | 3.13 | % | 3.01 | % | 3.26 | % | 3.15 | % | 3.26 | % | |||||
Ratios based on net income as adjusted (non-GAAP): | |||||||||||||||
Return on average assets as adjusted2 (annualized) | 0.90 | % | 0.82 | % | 0.79 | % | 0.78 | % | 0.76 | % | |||||
Return on average equity as adjusted3 (annualized) | 9.24 | % | 8.59 | % | 7.85 | % | 8.09 | % | 7.44 | % | |||||
Return on average tangible common equity as adjusted5 (annualized) | 12.06 | % | 11.34 | % | 10.68 | % | 10.78 | % | 10.13 | % | |||||
Efficiency ratio4 as adjusted (non-GAAP) | 59 | % | 64 | % | 66 | % | 64 | % | 68 | % |
Reconciliation of Return on Average Assets as Adjusted (non-GAAP) (in thousands, except ratios) | ||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
GAAP earnings after income taxes | $ | 3,570 | $ | 3,480 | $ | 3,169 | $ | 12,725 | $ | 9,463 | ||||||||||
Net income as adjusted after income taxes (non-GAAP) (1) | $ | 3,691 | $ | 3,348 | $ | 2,956 | $ | 12,425 | $ | 10,675 | ||||||||||
Average assets | $ | 1,634,459 | $ | 1,627,497 | $ | 1,492,834 | $ | 1,594,053 | $ | 1,398,482 | ||||||||||
Return on average assets (annualized) | 0.87 | % | 0.85 | % | 0.84 | % | 0.80 | % | 0.68 | % | ||||||||||
Return on average assets as adjusted (non-GAAP) (annualized) | 0.90 | % | 0.82 | % | 0.79 | % | 0.78 | % | 0.76 | % | ||||||||||
(1) See Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP) | ||||||||||||||||||||
Reconciliation of Return on Average Equity as Adjusted (non-GAAP) (in thousands, except ratios) | ||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
GAAP earnings after income taxes | $ | 3,570 | $ | 3,480 | $ | 3,169 | $ | 12,725 | $ | 9,463 | ||||||||||
Net income as adjusted after income taxes (non-GAAP) (1) | $ | 3,691 | $ | 3,348 | $ | 2,956 | $ | 12,425 | $ | 10,675 | ||||||||||
Average equity | $ | 158,968 | $ | 154,996 | $ | 149,437 | $ | 153,497 | $ | 143,523 | ||||||||||
Return on average equity (annualized) | 8.93 | % | 8.93 | % | 8.41 | % | 8.29 | % | 6.59 | % | ||||||||||
Return on average equity as adjusted (non-GAAP) (annualized) | 9.24 | % | 8.59 | % | 7.85 | % | 8.09 | % | 7.44 | % | ||||||||||
(1) See Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP) | ||||||||||||||||||||
Reconciliation of Return on Average Tangible Common Equity and Reconciliation of Return on Average Tangible Common Equity, as Adjusted (non-GAAP) (in thousands, except ratios) | ||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
Total stockholders’ equity | $ | 160,564 | $ | 157,323 | $ | 150,553 | $ | 160,564 | $ | 150,553 | ||||||||||
Less: | (31,498 | ) | (31,498 | ) | (31,498 | ) | (31,498 | ) | (31,498 | ) | ||||||||||
Less: Intangible assets | (5,494 | ) | (5,893 | ) | (7,587 | ) | (5,494 | ) | (7,587 | ) | ||||||||||
Tangible common equity (non-GAAP) | $ | 123,572 | $ | 119,932 | $ | 111,468 | $ | 123,572 | $ | 111,468 | ||||||||||
Average tangible common equity (non-GAAP) | $ | 121,752 | $ | 117,466 | $ | 109,829 | $ | 115,313 | $ | 105,340 | ||||||||||
GAAP earnings after income taxes | $ | 3,570 | $ | 3,480 | $ | 3,169 | $ | 12,725 | $ | 9,463 | ||||||||||
Net income as adjusted after income taxes (non-GAAP) (1) | $ | 3,691 | $ | 3,348 | $ | 2,956 | $ | 12,425 | $ | 10,675 | ||||||||||
Return on average tangible common equity (annualized) | 11.67 | % | 11.79 | % | 11.45 | % | 11.04 | % | 8.98 | % | ||||||||||
Return on average tangible common equity as adjusted (non-GAAP) (annualized) | 12.06 | % | 11.34 | % | 10.68 | % | 10.78 | % | 10.13 | % | ||||||||||
(1) See Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP) | ||||||||||||||||||||
Reconciliation of Efficiency Ratio as Adjusted (non-GAAP) (in thousands, except ratios) | ||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
Non-interest expense (GAAP) | $ | 10,826 | $ | 10,724 | $ | 10,428 | $ | 43,673 | $ | 42,686 | ||||||||||
Merger related Costs (1) | — | — | (104 | ) | — | (3,880 | ) | |||||||||||||
Branch Closure Costs (1) | (165 | ) | — | — | (165 | ) | (15 | ) | ||||||||||||
Audit and financial reporting (1) | — | — | — | — | (358 | ) | ||||||||||||||
Non-interest expense as adjusted (non-GAAP) | 10,661 | 10,724 | 10,324 | 43,508 | 38,433 | |||||||||||||||
Non-interest income | 4,770 | 5,062 | 3,784 | 18,448 | 14,975 | |||||||||||||||
Net interest margin | 13,372 | 11,909 | 11,775 | 50,255 | 43,513 | |||||||||||||||
Efficiency ratio denominator (GAAP) | $ | 18,142 | $ | 16,971 | $ | 15,559 | $ | 68,703 | $ | 58,488 | ||||||||||
Net gain on sale of branch (1) | — | — | — | — | (2,295 | ) | ||||||||||||||
Net gain on acquired business lines (1) | — | (180 | ) | — | (432 | ) | — | |||||||||||||
Settlement proceeds (1) | — | — | — | (131 | ) | — | ||||||||||||||
Efficiency ratio denominator (non-GAAP) | $ | 18,142 | $ | 16,791 | $ | 15,559 | $ | 68,140 | $ | 56,193 | ||||||||||
Efficiency ratio (GAAP) | 60 | % | 63 | % | 67 | % | 64 | % | 73 | % | ||||||||||
Efficiency ratio as adjusted (non-GAAP) | 59 | % | 64 | % | 66 | % | 64 | % | 68 | % | ||||||||||
(1) See Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP) | ||||||||||||||||||||
Reconciliation of tangible book value per share (non-GAAP) (in thousands, except per share data) | ||||||||||||
Tangible book value per share at end of period | ||||||||||||
Total stockholders’ equity | $ | 160,564 | $ | 157,323 | $ | 150,553 | ||||||
Less: | (31,498 | ) | (31,498 | ) | (31,498 | ) | ||||||
Less: Intangible assets | (5,494 | ) | (5,893 | ) | (7,587 | ) | ||||||
Tangible common equity (non-GAAP) | $ | 123,572 | $ | 119,932 | $ | 111,468 | ||||||
Ending common shares outstanding | 11,056,349 | 11,154,645 | 11,266,954 | |||||||||
Book value per share | $ | 14.52 | $ | 14.10 | $ | 13.36 | ||||||
Tangible book value per share (non-GAAP) | $ | 11.18 | $ | 10.75 | $ | 9.89 | ||||||
Reconciliation of tangible common equity as a percent of tangible assets (non-GAAP) (in thousands, except ratios) | ||||||||||||
Tangible common equity as a percent of tangible assets at end of period | ||||||||||||
Total stockholders’ equity | $ | 160,564 | $ | 157,323 | $ | 150,553 | ||||||
Less: | (31,498 | ) | (31,498 | ) | (31,498 | ) | ||||||
Less: Intangible assets | (5,494 | ) | (5,893 | ) | (7,587 | ) | ||||||
Tangible common equity (non-GAAP) | $ | 123,572 | $ | 119,932 | $ | 111,468 | ||||||
Total Assets | $ | 1,649,095 | $ | 1,622,593 | $ | 1,531,249 | ||||||
Less: | (31,498 | ) | (31,498 | ) | (31,498 | ) | ||||||
Less: Intangible assets | (5,494 | ) | (5,893 | ) | (7,587 | ) | ||||||
Tangible Assets (non-GAAP) | $ | 1,612,103 | $ | 1,585,202 | $ | 1,492,164 | ||||||
Less SBA PPP Loans | (123,702 | ) | (139,166 | ) | — | |||||||
Tangible Assets, excluding SBA PPP Loans (non-GAAP) | $ | 1,488,401 | $ | 1,446,036 | $ | 1,492,164 | ||||||
Total stockholders’ equity to total assets ratio | 9.74 | % | 9.70 | % | 9.83 | % | ||||||
Tangible common equity as a percent of tangible assets (non-GAAP) | 7.67 | % | 7.57 | % | 7.47 | % | ||||||
Tangible common equity as a percent of tangible assets, excluding SBA PPP Loans (non-GAAP) | 8.30 | % | 8.29 | % | 7.47 | % |
1Net income as adjusted and net income as adjusted per share are non-GAAP financial measures that management believes enhances investors’ ability to better understand the underlying business performance and trends related to core business activities. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)”.
2Return on average assets as adjusted is a non-GAAP measure that management believes enhances investors’ ability to better understand the underlying business performance and trends relative to average assets. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of Return on Average Assets as Adjusted (non-GAAP)”.
3Return on average equity as adjusted is a non-GAAP measure that management believes enhances investors’ ability to better understand the underlying business performance and trends relative to average equity. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of Return on Average Equity as Adjusted (non-GAAP)”.
4The efficiency ratio as adjusted (non-GAAP) is a non-GAAP measure that management believes enhances investors’ ability to better understand the underlying business performance and the Company’s ability to use what it has to generate the most profit possible for shareholders relative to core business activities. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of Efficiency Ratio as Adjusted (non-GAAP)”.
5Tangible book value, tangible book value per share, tangible common equity as a percent of tangible assets, return on tangible common equity and return on tangible common equity as adjusted are non-GAAP measures that management believes enhances investors’ ability to better understand the Company’s financial position. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of tangible book value per share (non-GAAP)”, “Reconciliation of tangible common equity as a percent of tangible assets (non-GAAP)”, and “Reconciliation of return on average tangible common equity and Reconciliation of Return on Average Tangible Common Equity as Adjusted (non-GAAP)”.
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