First Quarter Summary
- Net income of
$3.4 million , or$0.14 per fully diluted share - Loans on nonaccrual reduced by 48.5% to
$20.6 million and classified loans reduced by 30.2% to$63.0 million - Ongoing focus on reducing cost of deposits resulted in a decrease in interest expense over last quarter of $338 thousand, or 26.1%, and expanded net interest margin by 12 basis points over last quarter
- Total new loan commitments of
$175.1 million and total loan fundings of$146.3 million including$92.6 million of Paycheck Protection Program ("PPP") loans - No provision for loan and lease losses for the quarter
- Allowance for loan and lease losses as a percentage of total loans outstanding at 1.38%, or 1.78% if the fully guaranteed PPP loans are excluded, as compared to 1.43% and 1.76%, respectively, as of
December 31, 2020 - Noninterest expense increased by $744 thousand, or 8.3%, primarily as a result of merger related expenses and increased payroll expenses due to the seasonality of payroll benefits and the payment of bonuses in the first quarter
- Definitive agreement signed to merge with Banc of California, Inc.
For the first quarter of 2021, the Company reported net income of
Results of Operations
The following tables show a summary of our operating results for the dates and periods indicated. The discussion below highlights the key factors contributing to the changes shown in the following tables for the three months ended
Three Months Ended | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Total interest income | $ | 13,698 | $ | 14,234 | $ | 16,016 | $ | 15,580 | $ | 14,769 | |||||||||
Total interest expense | 959 | 1,297 | 1,762 | 2,262 | 3,296 | ||||||||||||||
Net interest income | 12,739 | 12,937 | 14,254 | 13,318 | 11,473 | ||||||||||||||
Provision for loan and lease losses | — | — | — | 2,850 | 6,200 | ||||||||||||||
Total noninterest income | 1,738 | 1,827 | 2,245 | 1,171 | 1,095 | ||||||||||||||
Total noninterest expense | 9,664 | 8,920 | 9,275 | 8,934 | 9,720 | ||||||||||||||
Income tax provision (benefit) | 1,425 | 2,140 | 2,138 | 800 | (991 | ) | |||||||||||||
Net income (loss) | $ | 3,388 | $ | 3,704 | $ | 5,086 | $ | 1,905 | $ | (2,361 | ) |
Net Interest Income
Q1 2021 vs Q4 2020. Net interest income decreased
- A decrease in interest income of
$536 thousand , or 3.8%, primarily attributable to the decrease in the average balance of the loan portfolio and a lower average yield, in addition to decreased fee income on PPP loans for the three months endedMarch 31, 2021 as compared to the three months endedDecember 31, 2020 ; partially offset by - A decrease in interest expense of
$338 thousand , or 26.1%, primarily attributable to our ongoing focus on reducing costs of deposits by monitoring and lowering interest rates in response to the current interest rate environment and actively managing our deposit portfolio away from higher costing money market deposits and certificates of deposit and into noninterest bearing deposits. - Our net interest margin increased to 3.43% for the three months ended
March 31, 2021 as compared to 3.31% for the three months endedDecember 31, 2020 , primarily as a result of a 35 basis point reduction in the cost of certificates of deposit and a 15 basis point reduction in total cost of deposits, in addition to a favorable change in our mix of deposits from higher costing certificates of deposit to lower costing noninterest bearing deposits.
Q1 2021 vs Q1 2020. Net interest income increased
- A decrease in interest expense of
$2.3 million , or 70.9%, primarily attributable to our focus on reducing costs of deposits by monitoring and lowering interest rates in response to the current interest rate environment and actively managing our deposit portfolio away from higher costing money market deposits and certificates of deposit and into noninterest bearing deposits; partially offset by - A decrease in interest income of
$1.1 million , or 7.3%, primarily attributable to a decrease in interest earned on loans and short-term investments as a result of lower average yields in the declining interest rate environment during the three months endedMarch 31, 2021 as compared to the three months endedMarch 31, 2020 , partially offset by increased income from our participation in PPP.
Provision for Loan and Lease Losses
Q1 2021 vs Q4 2020. We recorded no provision for loan and lease losses during the three months ended
Q1 2021 vs Q1 2020. We recorded no provision for loan and lease losses during the three months ended
Noninterest Income
Q1 2021 vs Q4 2020. Noninterest income decreased by
Q1 2021 vs Q1 2020. Noninterest income increased by
Noninterest Expense
Q1 2021 vs Q4 2020. Noninterest expense increased
- Accounting and legal expenses of $387 thousand related to the proposed merger with Banc of California, and
- An increase of
$317 thousand in salaries and employee benefits primarily related to new employees and an increase in payroll benefits due to seasonality during the three months endedMarch 31, 2021 , and - An increase of
$100 thousand inFDIC insurance expense as the result of an increased assessment rate based on an increase in average asset size, partially offset by - A decrease of
$223 thousand in other noninterest expense primarily related to business development and other operating expenses.
Q1 2021 vs Q1 2020. Noninterest expense decreased
- A decrease of
$408 thousand in salaries and employee benefits primarily related to the staffing changes made at the bank during the second quarter of 2020, and - A decrease of
$176 thousand in other noninterest expense primarily related to business development and other operating expenses, partially offset by - Accounting and legal expenses of $387 thousand related to the proposed merger with Banc of California, and
- An increase of
$92 thousand inFDIC expenses based on an increased average asset size that resulted from our participation in PPP; and - An increase of
$43 thousand in equipment and depreciation related to hardware and software purchases resulting from the efforts to deploy work-from-home capabilities for more of our employees.
Income Tax Provision
For the three months ended
For the three months ended
Balance Sheet Information
Loans
As indicated in the table below, at
Amount | Percent of Total Loans | Amount | Percent of Total Loans | ||||||||||
(Dollars in thousands) | |||||||||||||
Commercial loans | $ | 321,319 | 25.8 | % | $ | 337,427 | 27.6 | % | |||||
Commercial loans - PPP | 280,562 | 22.5 | % | 229,728 | 18.8 | % | |||||||
Commercial real estate loans - owner occupied | 189,203 | 15.2 | % | 197,336 | 16.1 | % | |||||||
Commercial real estate loans - all other | 197,026 | 15.8 | % | 194,893 | 15.9 | % | |||||||
Residential mortgage loans - multi-family | 157,646 | 12.7 | % | 159,182 | 13.0 | % | |||||||
Residential mortgage loans - single family | 10,085 | 0.8 | % | 12,766 | 1.0 | % | |||||||
Construction and land development loans | 11,840 | 1.0 | % | 11,766 | 1.0 | % | |||||||
Consumer loans | 76,669 | 6.2 | % | 80,759 | 6.6 | % | |||||||
Gross loans | $ | 1,244,350 | 100.0 | % | $ | 1,223,857 | 100.0 | % |
The increase of
During the first quarter of 2021, we secured new client relationships with commercial loan commitments of
Deposits
Type of Deposit | (Dollars in thousands) | ||||||
Noninterest-bearing checking accounts | $ | 649,407 | $ | 647,115 | |||
Interest-bearing checking accounts | 145,728 | 129,834 | |||||
Money market and savings deposits | 389,693 | 392,690 | |||||
Certificates of deposit | 198,943 | 213,708 | |||||
Totals | $ | 1,383,771 | $ | 1,383,347 |
The increase in total deposits of
Lower priced core deposits increased to 85.6% of total deposits, while higher priced certificates of deposits decreased to 14.4% of total deposits at
Asset Quality
Nonperforming Assets
2021 | 2020 | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Total nonperforming loans | $ | 20,559 | $ | 39,916 | $ | 16,780 | $ | 24,681 | $ | 20,021 | |||||||||
Other nonperforming assets | 152 | 231 | 150 | 663 | 392 | ||||||||||||||
Total nonperforming assets | $ | 20,711 | $ | 40,147 | $ | 16,930 | $ | 25,344 | $ | 20,413 | |||||||||
30-89 day past due loans | $ | 1,549 | $ | 8,992 | $ | 25,616 | $ | 7,175 | $ | 22,437 | |||||||||
90-day past due loans | $ | 623 | $ | 11,507 | $ | 9,893 | $ | 12,412 | $ | 3,765 | |||||||||
Total classified assets | $ | 63,180 | $ | 90,502 | $ | 84,616 | $ | 83,104 | $ | 44,825 | |||||||||
Allowance for loan and lease losses | $ | 17,127 | $ | 17,452 | $ | 17,485 | $ | 18,166 | $ | 17,520 | |||||||||
Allowance for loan and lease losses /gross loans | 1.38 | % | 1.43 | % | 1.37 | % | 1.33 | % | 1.53 | % | |||||||||
Allowance for loan and lease losses /total assets | 1.08 | % | 1.10 | % | 1.08 | % | 1.08 | % | 1.09 | % | |||||||||
Ratio of allowance for loan and lease losses to nonperforming loans | 83.31 | % | 43.72 | % | 104.20 | % | 73.60 | % | 87.51 | % | |||||||||
Ratio of nonperforming assets to total assets | 1.31 | % | 2.53 | % | 1.04 | % | 1.50 | % | 1.28 | % | |||||||||
Net quarterly charge-offs to gross loans (annualized) | 0.11 | % | 0.01 | % | 0.21 | % | 0.65 | % | 0.80 | % |
Our classified assets decreased by
Our classified assets increased by
Allowance for Loan and Lease Losses
2021 | 2020 | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Balance at beginning of quarter | $ | 17,452 | $ | 17,485 | $ | 18,166 | $ | 17,520 | $ | 13,611 | |||||||||||||
Charge offs | (538 | ) | (915 | ) | (840 | ) | (2,249 | ) | (2,314 | ) | |||||||||||||
Recoveries | 213 | 882 | 159 | 45 | 23 | ||||||||||||||||||
Provision | — | — | — | 2,850 | 6,200 | ||||||||||||||||||
Balance at end of quarter | $ | 17,127 | $ | 17,452 | $ | 17,485 | $ | 18,166 | $ | 17,520 |
At
The ratio of the ALLL-to-total loans outstanding as of
Capital Resources
At
The following table sets forth the regulatory capital and capital ratios of the Bank at
Actual At | Federal Regulatory Requirement to be Rated Well-Capitalized | |||||||||||
Amount | Ratio | Amount | Ratio | |||||||||
(Dollars in thousands) | ||||||||||||
Total Capital to Risk Weighted Assets | $ | 187,050 | 16.8 | % | $ | 111,678 | At least 10.0% | |||||
Common Equity Tier 1 Capital to Risk Weighted Assets | $ | 173,047 | 15.5 | % | $ | 72,591 | At least 6.5% | |||||
Tier 1 Capital to Risk Weighted Assets | $ | 173,047 | 15.5 | % | $ | 89,343 | At least 8.0% | |||||
Tier 1 Capital to Average Assets | $ | 173,047 | 11.2 | % | $ | 77,294 | At least 5.0% |
About
Forward-Looking Information
This news release contains statements regarding our expectations, beliefs and views about our proposed merger with Banc of California, Inc. (“Banc of California”), our future financial performance and our business, trends and expectations regarding the markets in which we operate, and our future plans, including the credit exposure of certain loan products and other components of our business that could be impacted by the COVID-19 pandemic. Those statements, which include the quotation from management, constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, can be identified by the fact that they do not relate strictly to historical or current facts. Often, they include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may”. Forward-looking statements are based on current information available to us and our assumptions about future events over which we do not have control. Moreover, our business and our markets are subject to a number of risks and uncertainties which could cause our actual financial performance in the future, and the future performance of our markets (which can affect both our financial performance and the market prices of our shares), to differ, possibly materially, from our expectations as set forth in the forward-looking statements contained in this news release.
In addition to the risk of incurring loan losses, which is an inherent risk of the banking business, these risks and uncertainties include, but are not limited to, the following: the possibility that the merger does not close when expected or at all because required regulatory, shareholder or other approvals, financial tests or other conditions to closing are not received or satisfied on a timely basis or at all; changes in Banc of California’s or our stock price before closing, including as a result of the companies’ financial performance prior to closing, general stock market movements, and the performance of other financial companies and peer group companies; the risk that the anticipated benefits of the merger may not be fully realized or may take longer to realize than expected, including as a result of changes in general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which Banc of California and we operate; Banc of California’s ability to promptly and effectively integrate our businesses following the merger; the reaction to the transaction of the companies’ customers, employees and counterparties; diversion of management time on merger-related issues; deteriorating economic conditions and macroeconomic factors such as unemployment rates and the volume of bankruptcies, as well as changes in monetary, fiscal or tax policy, any of which could cause us to incur additional loan losses and adversely affect our results of operations in the future; the risk that the credit quality of our borrowers declines; potential declines in the value of the collateral for secured loans; the risk that steps we have taken to strengthen our overall credit administration are not effective; the risk that our interest margins and, therefore, our net interest income will be adversely affected by changes in prevailing interest rates; the risk that we will not succeed in further reducing our remaining nonperforming assets, in which event we would face the prospect of further loan charge-offs and write-downs of other real estate owned and would continue to incur expenses associated with the management and disposition of those assets; the risk that we will not be able to manage our interest rate risks effectively, in which event our operating results could be harmed; the prospect that government regulation of banking and other financial services organizations will increase, causing our costs of doing business to increase and restricting our ability to take advantage of business and growth opportunities; the risk that our efforts to develop a robust commercial banking platform may not succeed; and the risk that we may be unable to realize our expected level of increasing deposit inflows. Many of the foregoing risks and uncertainties are, and will be, exacerbated by the COVID-19 pandemic and any worsening of the global business and economic environment as a result. Readers of this news release are encouraged to review the additional information regarding these and other risks and uncertainties to which our business is subject that are contained in our Annual Report on Form 10-K for the year ended
Due to these and other risks and uncertainties to which our business is subject, you are cautioned not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of its date, or to make predictions about our future financial performance based solely on our historical financial performance. We disclaim any obligation to update or revise any of the forward-looking statements as a result of new information, future events or otherwise, except as may be required by law.
Additional Information About the Merger and Where to Find It
In connection with the proposed merger, Banc of California plans to file a registration statement on Form S-4 with the
SHAREHOLDERS OF PACIFIC MERCANTILE BANCORP AND BANC OF
The final joint proxy statement/prospectus will be mailed to shareholders of
Banc of California,
This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars and numbers of shares in thousands, except per share data)
(Unaudited)
Three Months Ended | |||||||||||||||||||||||
2021 | 2020 | 2020 | Mar '21 vs Dec '20 % Change | Mar '21 vs Mar '20 % Change | |||||||||||||||||||
Total interest income | $ | 13,698 | $ | 14,234 | $ | 14,769 | (3.8 | ) | % | (7.3 | ) | % | |||||||||||
Total interest expense | 959 | 1,297 | 3,296 | (26.1 | ) | % | (70.9 | ) | % | ||||||||||||||
Net interest income | 12,739 | 12,937 | 11,473 | (1.5 | ) | % | 11.0 | % | |||||||||||||||
Provision for loan and lease losses | — | — | 6,200 | — | % | (100.0 | ) | % | |||||||||||||||
Net interest income after provision for loan and lease losses | 12,739 | 12,937 | 5,273 | (1.5 | ) | % | 141.6 | % | |||||||||||||||
Noninterest income: | |||||||||||||||||||||||
Service fees on deposits and other banking services | 819 | 1,099 | 522 | (25.5 | ) | % | 56.9 | % | |||||||||||||||
Net gain on sale of securities available for sale | 140 | 171 | — | — | % | 100.0 | % | ||||||||||||||||
Net gain on sale of small business administration loans | — | 12 | — | (100.0 | ) | % | — | % | |||||||||||||||
Net loss on sale of other assets | (45 | ) | (30 | ) | 6 | 50.0 | % | (850.0 | ) | % | |||||||||||||
Other noninterest income | 824 | 575 | 567 | 43.3 | % | 45.3 | % | ||||||||||||||||
Total noninterest income | 1,738 | 1,827 | 1,095 | (4.9 | ) | % | 58.7 | % | |||||||||||||||
Noninterest expense: | |||||||||||||||||||||||
Salaries and employee benefits | 5,661 | 5,344 | 6,069 | 5.9 | % | (6.7 | ) | % | |||||||||||||||
Occupancy and equipment | 1,151 | 1,171 | 1,123 | (1.7 | ) | % | 2.5 | % | |||||||||||||||
Professional fees | 882 | 699 | 861 | 26.2 | % | 2.4 | % | ||||||||||||||||
Merger related expenses | 387 | — | — | 100.0 | % | 100.0 | % | ||||||||||||||||
285 | 185 | 193 | 54.1 | % | 47.7 | % | |||||||||||||||||
Other noninterest expense | 1,298 | 1,521 | 1,474 | (14.7 | ) | % | (11.9 | ) | % | ||||||||||||||
Total noninterest expense | 9,664 | 8,920 | 9,720 | 8.3 | % | (0.6 | ) | % | |||||||||||||||
Income before income taxes | 4,813 | 5,844 | (3,352 | ) | (17.6 | ) | % | (243.6 | ) | % | |||||||||||||
Income tax expense | 1,425 | 2,140 | (991 | ) | (33.4 | ) | % | (243.8 | ) | % | |||||||||||||
Net income | $ | 3,388 | $ | 3,704 | $ | (2,361 | ) | (8.5 | ) | % | (243.5 | ) | % | ||||||||||
Net income allocable to common shareholders | $ | 3,388 | $ | 3,704 | $ | (2,361 | ) | (8.5 | ) | % | (243.5 | ) | % | ||||||||||
Basic income per common share: | |||||||||||||||||||||||
Net income available to common shareholders | $ | 0.14 | $ | 0.16 | $ | (0.10 | ) | (12.5 | ) | % | (240.0 | ) | % | ||||||||||
Diluted income per common share: | |||||||||||||||||||||||
Net income available to common shareholders | $ | 0.14 | $ | 0.16 | $ | (0.10 | ) | (12.5 | ) | % | (240.0 | ) | % | ||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||||||||
Basic | 23,562 | 23,535 | 23,475 | 0.1 | % | 0.4 | % | ||||||||||||||||
Diluted | 23,813 | 23,728 | 23,475 | 0.4 | % | 1.4 | % | ||||||||||||||||
Ratios from continuing operations(1): | |||||||||||||||||||||||
Return on average assets | 0.89 | % | 0.93 | % | (0.67 | ) | % | ||||||||||||||||
Return on average equity | 8.54 | % | 9.34 | % | (6.29 | ) | % | ||||||||||||||||
Efficiency ratio | 66.75 | % | 60.42 | % | 77.34 | % |
____________________
(1) Ratios for the three months ended
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except share and book value data)
(Unaudited)
ASSETS | Increase/ (Decrease) | ||||||||||
Cash and due from banks | $ | 18,487 | $ | 12,024 | 53.8 | % | |||||
Interest bearing deposits with financial institutions(1) | 239,899 | 274,245 | (12.5 | ) | % | ||||||
Interest bearing time deposits | 1,597 | 1,597 | — | % | |||||||
Investment securities (including stock) | 51,138 | 50,093 | 2.1 | % | |||||||
Loans (net of allowances of | 1,227,645 | 1,209,587 | 1.5 | % | |||||||
Net deferred tax assets | 8,989 | 8,502 | 5.7 | % | |||||||
Intangible assets | 370 | 389 | (4.9 | ) | % | ||||||
Other assets | 31,912 | 31,153 | 2.4 | % | |||||||
Total assets | $ | 1,580,037 | $ | 1,587,590 | (0.5 | ) | % | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Noninterest bearing deposits | $ | 649,407 | $ | 647,115 | 0.4 | % | |||||
Interest bearing deposits | |||||||||||
Interest checking | 145,728 | 129,834 | 12.2 | % | |||||||
Savings/money market | 389,693 | 392,690 | (0.8 | ) | % | ||||||
Certificates of deposit | 198,943 | 213,708 | (6.9 | ) | % | ||||||
Total interest bearing deposits | 734,364 | 736,232 | (0.3 | ) | % | ||||||
Total deposits | 1,383,771 | 1,383,347 | — | % | |||||||
Other borrowings | — | 10,000 | (100.0 | ) | % | ||||||
Other liabilities | 17,468 | 17,967 | (2.8 | ) | % | ||||||
Junior subordinated debentures | 17,527 | 17,527 | — | % | |||||||
Total liabilities | 1,418,766 | 1,428,841 | (0.7 | ) | % | ||||||
Shareholders’ equity | 161,271 | 158,749 | 1.6 | % | |||||||
Total Liabilities and Shareholders’ Equity | $ | 1,580,037 | $ | 1,587,590 | (0.5 | ) | % | ||||
Book value per share | $ | 6.78 | $ | 6.71 | 1.0 | % | |||||
Shares outstanding, common | 23,787,385 | 23,658,415 | 0.5 | % |
____________________
(1) Interest bearing deposits held in the Bank’s account maintained at the
CONSOLIDATED AVERAGE BALANCES AND YIELD DATA
(Dollars in thousands)
(Unaudited)
Three Months Ended | ||||||||||||||||||||||||||||||||||||
Average Balance | Interest Earned/ Paid | Average Yield/ Rate | Average Balance | Interest Earned/ Paid | Average Yield/ Rate | Average Balance | Interest Earned/ Paid | Average Yield/ Rate | ||||||||||||||||||||||||||||
Interest earning assets | ||||||||||||||||||||||||||||||||||||
Short-term investments(1) | 201,498 | $ | 52 | 0.10 | % | $ | 252,931 | $ | 65 | 0.10 | % | $ | 220,598 | $ | 721 | 1.31 | % | |||||||||||||||||||
Securities available for sale and stock(2) | 53,739 | 315 | 2.38 | % | 40,162 | 247 | 2.45 | % | 35,844 | 261 | 2.93 | % | ||||||||||||||||||||||||
Loans(3) | 1,250,846 | 13,331 | 4.32 | % | 1,260,393 | 13,922 | 4.39 | % | 1,116,999 | 13,787 | 4.96 | % | ||||||||||||||||||||||||
Total interest-earning assets | 1,506,083 | 13,698 | 3.69 | % | 1,553,486 | 14,234 | 3.65 | % | 1,373,441 | 14,769 | 4.32 | % | ||||||||||||||||||||||||
Noninterest-earning assets | ||||||||||||||||||||||||||||||||||||
Cash and due from banks | 17,800 | 16,521 | 16,774 | |||||||||||||||||||||||||||||||||
All other assets | 22,788 | 22,451 | 25,151 | |||||||||||||||||||||||||||||||||
Total assets | $ | 1,546,671 | $ | 1,592,458 | $ | 1,415,366 | ||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||
Interest-bearing checking accounts | $ | 140,205 | 27 | 0.08 | % | $ | 137,162 | 31 | 0.09 | % | $ | 103,355 | 87 | 0.34 | % | |||||||||||||||||||||
Money market and savings accounts | 392,543 | 212 | 0.22 | % | 380,681 | 218 | 0.23 | % | 415,533 | 1,298 | 1.26 | % | ||||||||||||||||||||||||
Certificates of deposit | 204,600 | 586 | 1.16 | % | 220,007 | 837 | 1.51 | % | 276,045 | 1,580 | 2.30 | % | ||||||||||||||||||||||||
Other borrowings | 2,667 | 11 | 1.67 | % | 23,056 | 86 | 1.48 | % | 33,626 | 133 | 1.59 | % | ||||||||||||||||||||||||
Junior subordinated debentures | 17,527 | 123 | 2.85 | % | 17,527 | 125 | 2.84 | % | 17,527 | 198 | 4.54 | % | ||||||||||||||||||||||||
Total interest bearing liabilities | 757,542 | 959 | 0.51 | % | 778,433 | 1,297 | 0.66 | % | 846,086 | 3,296 | 1.57 | % | ||||||||||||||||||||||||
Noninterest bearing liabilities | ||||||||||||||||||||||||||||||||||||
Demand deposits | 610,905 | 637,940 | 398,547 | |||||||||||||||||||||||||||||||||
Accrued expenses and other liabilities | 17,248 | 18,299 | 19,704 | |||||||||||||||||||||||||||||||||
Shareholders' equity | 160,976 | 157,786 | 151,029 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,546,671 | $ | 1,592,458 | $ | 1,415,366 | ||||||||||||||||||||||||||||||
Net interest income | $ | 12,739 | $ | 12,937 | $ | 11,473 | ||||||||||||||||||||||||||||||
Net interest income/spread | 3.18 | % | 2.99 | % | 2.75 | % | ||||||||||||||||||||||||||||||
Net interest margin | 3.43 | % | 3.31 | % | 3.36 | % |
(1) Short-term investments consist of federal funds sold and interest bearing deposits that we maintain at other financial institutions.
(2) Stock consists of FHLB stock and
(3) Loans include the average balance of nonaccrual loans.
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