California BanCorp Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2019
OAKLAND, Calif., Feb. 05, 2020 (GLOBE NEWSWIRE) -- California BanCorp (the “Company”) (OTCQX-CALB), the parent company of California Bank of Commerce (the “Bank”), today announced its financial results for the fourth quarter and year ended December 31, 2019.
Net income was $578 thousand for the fourth quarter of 2019, representing a decrease of $1.4 million, or 70% compared to $2.0 million for the third quarter of 2019. For the year ended December 31, 2019, net income was $7.0 million representing a decrease of $1.7 million or 20% compared to $8.7 million in 2018.
Diluted earnings per share of $0.07 for the fourth quarter of 2019 compared to $0.25 for the third quarter of 2019. For the year ended December 31, 2019, diluted earnings per share of $0.86 compared to $1.19 in 2018.
“The past year has been one of meaningful investment in the future potential of our franchise. During 2019 we added substantial capabilities, in people and systems, to extend our markets and enhance our effectiveness in all markets,” said Steve Shelton, President and Chief Executive Officer. “As we move forward, we expect to continue our momentum in building a quality balance sheet and driving operating leverage in our business.”
“Our fourth quarter results were significantly impacted by our push to complete key initiatives and aggressively resolve a legacy problem loan,” stated Thomas A. Sa, Senior Executive Vice President, Chief Financial Officer and Chief Operating Officer. “At the same time, we made remarkable progress in quality measures for our business by growing average deposits by over $100 million, $45 million of which came in noninterest-bearing demand deposits, and by reducing nonperforming assets by half.”
Financial Highlights
Financial Position
December 31, 2019 compared to December 31, 2018
- Total assets increased by $146.4 million, or 15% to a record level of $1.15 billion.
- Total deposits increased by $114.0 million, or 13% to a record level of $988.2 million. Average total deposits increased $79.0 million, or 10%.
- Gross loans increased by $104.9 million, or 12% to a record level of $949.7 million. Average gross loans increased $148.3 million, or 20%.
- Total equity increased by $9.2 million, or 8% to $130.3 million.
December 31, 2019 compared to September 30, 2019
- Total assets increased by $57.4 million, or 5% to a record level of $1.15 billion.
- Total deposits increased by $64.3 million, or 7%. Average total deposits increased $102.0 million, or 11%.
- Average noninterest-bearing demand deposits increased $45.0 million, or 13%.
- Gross loans increased by $16.4 million, or 2%. Average gross loans grew $20.8 million, or 2%.
Income Statement
Years ended December 31, 2019 compared to December 31, 2018
- Net income decreased by $1.7 million, or 20% to $7.0 million.
- Net interest income increased by $5.1 million, or 14% to $40.9 million.
- Total revenue increased by $5.6 million, or 14% to $45.2 million.
- Provision for loan losses increased by $890.0 thousand, or 62%, to $2.3 million.
- Operating expenses increased by $6.9 million, or 26%, to $33.2 million.
Three months ended December 31, 2019 compared to September 30, 2019
- Net income decreased by $1.4 million, or 71% to $578 thousand.
- Net interest income increased by $151 thousand, or 1% to $10.6 million.
- Provision for loan losses increased by $500.0 thousand, or 100%, to $1.0 million.
- Operating expenses increased $1.4 million, or 17%, to $9.8 million.
Balance Sheet
Total assets reached a record $1.15 billion as of December 31, 2019, up $146.4 million, or 15% compared to a year ago.
Total asset growth was driven by growth in deposits which increased by $114.0 million or 13% from $874.2 million at December 31, 2018, to $988.2 million at December 31, 2019. Commercial noninterest-bearing deposits represented $34.9 million of total deposit growth year over year, and represented growth of 10% compared to December 31, 2018. Noninterest-bearing deposits at December 31, 2019 were 39% of total deposits compared to 40% of total deposits at December 31, 2018. Growth in interest-bearing deposits of $79.1 million was comprised of growth in money market balances of $63.1 million and time deposits of $23.4 million, partially offset by a decline in interest-bearing demand deposits of $7.5 million.
Total gross loans increased by $104.9 million, or 12% to $949.7 million at December 31, 2019, from $844.7 million at December 31, 2018. The largest categories of growth within the loan portfolio were in commercial real estate at $51.1 million and commercial & industrial loans at $48.6 million.
Asset Quality
The allowance for loan losses increased by $275 thousand to $11.1 million, or 1.17% of total loans at December 31, 2019, compared to $10.8 million, or 1.28% of total loans at December 31, 2018. The change in the allowance was primarily the result of the charge-off activity in 2019, which partially offset provisions to accommodate loan growth.
Non-performing assets (“NPAs”) to total assets of 0.24% at December 31, 2019, compared to 0.44% at December 31, 2018, with non-performing loans of $2.7 million and $4.5 million, respectively, on those dates. At December 31, 2019, the allowance represented 402% coverage of non-performing assets, up from 242% at December 31, 2018.
Shareholder’s Equity
Total shareholder’s equity increased by $9.2 million, or 8% to $130.3 million at December 31, 2019, from $121.1 million at December 31, 2018. The increase is primarily attributed to earnings during the twelve-month period totaling $7.0 million, and the remainder resulting from shares issued under stock compensation plans and an increase in other comprehensive income. Tangible book value per common share increased by 7% between the periods, from $14.20 at December 31, 2018, to $15.16 at December 31, 2019.
Net Interest Income and Net Interest Margin – Years ended December 31, 2019 and December 31, 2018
Net interest income for the year ended December 31, 2019, was $40.9 million, an increase of $5.1 million, or 14.2% over $35.8 million for the same period in 2018.
Average total interest-earning assets increased by $116.4 million, or 13.3% to $992.7 million during 2019, and the average yield increased 27 basis points to 4.94%, primarily as a result of the strong increase in average loan balances and higher balance sheet leverage. During the year the Bank benefited from a significant increase in average loan balances of $148.2 million or 19.6% to $903.9 million. The average yield on total average gross loans in 2019 was 5.30%, up by 5 basis points compared to the 5.25% yield during 2018. In addition, as growth in average loan balances outpaced growth in average deposits, the average loan to deposit ratio for the year ended December 31, 2019 was 101.1% compared to 92.7% in the same period of 2018.
Of the $79.0 million increase in average total deposit balances year over year, $9.6 million were noninterest-bearing deposits while $69.4 million were interest-bearing. In addition, the overall cost of average total deposit balances was up by 25 basis points to 0.80% during 2019 compared to 0.55% during 2018. Average borrowed funds increased by $17.7 million to $29.7 million during 2019 while the average cost decreased to 3.13% in 2019 compared to 5.37% in 2018.
As a result of the strong increase in average loan balances and increased balance sheet leverage the net interest margin increased by 3 basis points to 4.12% during 2019, compared to 4.09% for 2018.
Net Interest Income and Net Interest Margin – three months ended December 31, 2019 and September 30, 2019
Net interest income was $10.6 million for the three months ended December 31, 2019, an increase of $150.7 thousand or 1% over $10.4 million for the third quarter ended September 30, 2019. The increase in net interest income includes an increase of $248.2 thousand in interest income comprised of increases in interest and fees on loans of $45.0 thousand and interest on excess funds of $262.6 thousand, offset in part by a decrease in interest earned on investment securities of $59.2 thousand.
Partially offsetting the growth in interest income was an increase of $97.5 thousand in interest expense. The growth in interest expense was comprised of growth in interest expense paid on deposits of $167.7 thousand offset by a decrease in interest expense on borrowed funds of $70.3 thousand. Growth in deposit expense was the result of growth in average interest-bearing deposits of $57.0 million. Interest expense on borrowed funds decreased as a result of lower utilization of wholesale funding, which decreased by $12.1 million on average in the quarter ended December 31, 2019 compared to the preceding quarter of 2019.
Compared to the third quarter of 2019, average deposit growth of $102.0 million outpaced growth in average loans of $20.8 million. As a result, the average loan to deposit ratio during the quarter ended December 31, 2019 decreased to 94.4% from 102.8% in the third quarter of 2019. In addition, average loans comprised 87.1% of average earning assets during the fourth quarter of 2019, which was a decrease from 92.9% for the third quarter of 2019. Taken together, the impact of the lower loan to deposit ratio and the decrease in loans as a percentage of average earning assets resulted in a decrease in yield on average earning assets of 33 basis points to 4.72% in the fourth quarter of 2019 from 5.05% for the third quarter.
Growth in average deposit balances in the quarter ended December 31, 2019 compared to the quarter ended September 30, 2019, was comprised of increases in average noninterest-bearing deposits of $45.0 million, or 13%, and $57.0 million, or 10.3%, in interest-bearing deposits. The average rate paid on interest-bearing deposits decreased by 2 basis points to 1.36% in the fourth quarter of 2019 compared to 1.38% in the third quarter of 2019. Noninterest-bearing demand deposits averaged 38.6% of total deposits in the fourth quarter of 2019 compared to 38.0% for the prior quarter. In addition, average borrowed funds to supplement funding decreased $12.1 million or 45% in the quarter ended December 31, 2019 compared to the third quarter of 2019.
The combination of the strong average deposit growth and lower deposit leverage during the fourth quarter of 2019, when compared to the third quarter of 2019, resulted in a decrease of 29 basis points in net interest margin to 3.90% during the fourth quarter of 2019 compared to 4.19% in the prior quarter.
Non-Interest Income and Expense – Years ended December 31, 2019 and December 31, 2018
During the year ended December 31, 2019, non-interest income totaled $4.2 million, an increase of $532 thousand, or 14.3% over 2018. This increase was primarily the result of higher loan fee income.
During the year ended December 31, 2019, non-interest expenses increased by $6.9 million or 26% to $33.2 million compared to $26.4 million in 2018. Of this increase, $5.1 million was in net salaries and benefits expenses, the result of hiring key executive and support staff positions to support the Company’s expansion initiatives and continued growth. In addition, operating expenses for the year ended December 31, 2019 included increases in occupancy and equipment related to the expansion of facilities; data processing costs related to enhancement of treasury management systems; and professional and legal fees related to implementation of FDICIA and SEC compliance controls and processes.
Non-Interest Income and Expense – three months ended December 31, 2019 and September 30, 2019
During the three months ended December 31, 2019, non-interest income totaled $1.2 million, a decrease of $115 thousand, or 9% from the three-month period ended September 30, 2019. The decrease was primarily the result of lower gains on loan sales compared to the prior quarter.
During the three months ended December 31, 2019, total non-interest expenses increased by $1.4 million, or 17% to $9.8 million compared to $8.4 million for the third quarter. This increase primarily related to completion of expansion initiatives, marketing campaigns and implementation of FDICIA and SEC compliance controls and processes. Salary and benefits expense increased $172 thousand for benefits related to executive hires in 2019.
Please see our detailed Fourth Quarter 2019 Unaudited Summary Financial Statements for more information.
Closing Remarks
“Following our capital raise in 2018, we embarked on a plan to position the Bank for substantive growth. We are proud of our efforts and progress in 2019 and believe we are well positioned to continue executing that plan,” Shelton concluded.
About California BanCorp
California BanCorp, the parent company for California Bank of Commerce, offers a broad range of commercial banking services to closely held businesses and professionals located throughout Northern California. The stock trades on the OTCQX marketplace under the symbol CALB (formerly CABC). For more information on California BanCorp, call us at (510) 457-3751, or visit us at .
California BanCorp
Steven E. Shelton, (510) 457-3751
President and Chief Executive Officer
Thomas A. Sa, (510) 457-3775
Senior Executive Vice President
Chief Financial Officer and
Chief Operating Officer
Forward-Looking Information
Statements in this news release regarding expectations and beliefs about future financial performance and financial condition, as well as trends in the Company’s business and markets are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," "outlook," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." The forward-looking statements in this news release are based on current information and on assumptions that the Company makes about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond the Company’s control. As a result of those risks and uncertainties, the Company’s actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause the Company to make changes to future plans. Those risks and uncertainties include, but are not limited to, the risk of incurring loan losses, which is an inherent risk of the banking business; the risk that the Company will not be able to continue its internal growth rate; the risk that the United States economy will experience slowed growth or recession or will be adversely affected by domestic or international economic conditions and risks associated with the Federal Reserve Board taking actions with respect to interest rates, any of which could adversely affect, among other things, the values of real estate collateral supporting many of the Company’s loans, interest income and interest rate margins and, therefore, the Company’s future operating results; risks associated with changes in income tax laws and regulations; and risks associated with seeking new client relationships and maintaining existing client relationships. Also, the Company’s actual financial results in the future may differ from those currently expected or previously reported due to additional risks and uncertainties of which the Company is not currently aware or does not currently view as, but in the future may become, material to its business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of today's date, or to make predictions based solely on historical financial performance. The Company disclaims any obligation to update forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise, except as may be required by law.
Source: California BanCorp
| California BanCorp Financial Data as of December 31, 2019 (Unaudited) | ||||||||||||||||||||||||||||||||||
| ($ Thousands) | For the three months ended | Change % | Year ended | Change % | ||||||||||||||||||||||||||||||
| Income Statement | 12/31/2019 | 9/30/2019 | 12/31/2018 | QoQ | YoY | 12/31/2019 | 12/31/2018 | YTDoYTD | ||||||||||||||||||||||||||
| Interest and fees on loans | $ | 12,132 | $ | 12,087 | $ | 10,120 | 0 | % | 20 | % | $ | 46,588 | $ | 38,443 | 21 | % | ||||||||||||||||||
| Other interest income | 673 | 471 | 913 | 43 | % | (26 | %) | 2,490 | 2,496 | (0 | %) | |||||||||||||||||||||||
| Total interest income | 12,805 | 12,557 | 11,033 | 2 | % | 16 | % | 49,078 | 40,939 | 20 | % | |||||||||||||||||||||||
| Interest on deposits | 2,096 | 1,929 | 1,396 | 9 | % | 50 | % | 7,209 | 4,461 | 62 | % | |||||||||||||||||||||||
| Interest on borrowings and subordinated debentures | 125 | 196 | 78 | (36 | %) | 61 | % | 931 | 645 | 44 | % | |||||||||||||||||||||||
| Total interest expense | 2,221 | 2,124 | 1,474 | 5 | % | 51 | % | 8,140 | 5,106 | 59 | % | |||||||||||||||||||||||
| Net interest income* | 10,584 | 10,433 | 9,559 | 1 | % | 11 | % | 40,938 | 35,833 | 14 | % | |||||||||||||||||||||||
| Provision for loan loss | 1,000 | 500 | 591 | 100 | % | 69 | % | 2,326 | 1,436 | 62 | % | |||||||||||||||||||||||
| Net interest income after provision | 9,584 | 9,933 | 8,968 | (4 | %) | 7 | % | 38,612 | 34,397 | 12 | % | |||||||||||||||||||||||
| Service charges and other account fees | 200 | 245 | 292 | (18 | %) | (32 | %) | 957 | 1,059 | (10 | %) | |||||||||||||||||||||||
| Loan related fees | 652 | 517 | 291 | 26 | % | 124 | % | 2,046 | 1,441 | 42 | % | |||||||||||||||||||||||
| Net gains on securities sales | - | - | 97 | 0 | % | (100 | %) | - | 97 | (100 | %) | |||||||||||||||||||||||
| Net gains on loan sales | 17 | 212 | 135 | (92 | %) | (87 | %) | 253 | 418 | (39 | %) | |||||||||||||||||||||||
| Other | 277 | 287 | 47 | (3 | %) | N/A | 992 | 701 | 42 | % | ||||||||||||||||||||||||
| Total non-interest income* | 1,146 | 1,261 | 862 | (9 | %) | 33 | % | 4,248 | 3,716 | 14 | % | |||||||||||||||||||||||
| Salaries and employee benefits | 5,769 | 5,597 | 4,052 | 3 | % | 42 | % | 20,674 | 15,573 | 33 | % | |||||||||||||||||||||||
| Occupancy and equipment expenses | 1,160 | 826 | 773 | 40 | % | 50 | % | 3,502 | 2,918 | 20 | % | |||||||||||||||||||||||
| Data processing, internet and software | 521 | 524 | 424 | (1 | %) | 23 | % | 1,883 | 1,539 | 22 | % | |||||||||||||||||||||||
| Professional and legal | 764 | 355 | 437 | 115 | % | 75 | % | 2,383 | 1,123 | 112 | % | |||||||||||||||||||||||
| Other operating expenses | 1,611 | 1,097 | 1,405 | 47 | % | 15 | % | 4,781 | 5,218 | (8 | %) | |||||||||||||||||||||||
| Total operating expenses | 9,825 | 8,399 | 7,091 | 17 | % | 39 | % | 33,223 | 26,371 | 26 | % | |||||||||||||||||||||||
| Net income before taxes | 905 | 2,795 | 2,739 | (68 | %) | (67 | %) | 9,637 | 11,742 | (18 | %) | |||||||||||||||||||||||
| Income taxes | 327 | 791 | 632 | (59 | %) | (48 | %) | 2,636 | 3,029 | (13 | %) | |||||||||||||||||||||||
| Net income | $ | 578 | $ | 2,004 | $ | 2,107 | (71 | %) | (73 | %) | $ | 7,001 | $ | 8,713 | (20 | %) | ||||||||||||||||||
| *Revenue (net interest income + non-interest income) | 11,730 | 11,694 | 10,421 | 0 | % | 13 | % | 45,186 | 39,549 | 14 | % | |||||||||||||||||||||||
| Earnings Per Share | ||||||||||||||||||||||||||||||||||
| Basic earnings per share | $ | 0.07 | $ | 0.25 | $ | 0.26 | (71 | %) | (73 | %) | $ | 0.87 | $ | 1.22 | (29 | %) | ||||||||||||||||||
| Diluted earnings per share | $ | 0.07 | $ | 0.25 | $ | 0.26 | (71 | %) | (73 | %) | $ | 0.86 | $ | 1.19 | (28 | %) | ||||||||||||||||||
| Average shares outstanding | 8,074,285 | 8,051,729 | 7,990,089 | 8,048,793 | 7,120,986 | |||||||||||||||||||||||||||||
| Average diluted shares | 8,162,585 | 8,135,337 | 8,103,041 | 8,132,093 | 7,317,611 | |||||||||||||||||||||||||||||
| For the three months ended | Change $ | Change % | ||||||||||||||||||||||||||||||||
| Average Balance Sheet Items | 12/31/2019 | 9/30/2019 | 12/31/2018 | QoQ | YoY | QoQ | YoY | |||||||||||||||||||||||||||
| Total Assets | $ | 1,156,611 | $ | 1,063,923 | $ | 982,992 | $ | 92,688 | $ | 173,619 | 9 | % | 18 | % | ||||||||||||||||||||
| Total Loans | 937,973 | 917,194 | 784,765 | 20,779 | 153,208 | 2 | % | 20 | % | |||||||||||||||||||||||||
| Investments | 32,646 | 36,902 | 52,836 | (4,256 | ) | (20,190 | ) | -12 | % | -38 | % | |||||||||||||||||||||||
| Earning Assets | 1,077,708 | 987,286 | 926,331 | 90,422 | 151,377 | 9 | % | 16 | % | |||||||||||||||||||||||||
| Non-Interest Bearing Deposits | 382,426 | 337,409 | 358,016 | 45,017 | 24,410 | 13 | % | 7 | % | |||||||||||||||||||||||||
| Core Deposits | 865,686 | 754,403 | 760,220 | 111,284 | 105,466 | 15 | % | 14 | % | |||||||||||||||||||||||||
| Total Deposits | 994,122 | 892,079 | 854,165 | 102,043 | 139,957 | 11 | % | 16 | % | |||||||||||||||||||||||||
| Borrowings | 14,976 | 27,065 | 5,000 | (12,089 | ) | 9,976 | -45 | % | 200 | % | ||||||||||||||||||||||||
| Tangible Common Equity | 122,684 | 120,833 | 112,450 | 1,851 | 10,234 | 2 | % | 9 | % | |||||||||||||||||||||||||
| Year ended | Change | |||||||||||||||||||||||||||||||||
| Average Balance Sheet Items | 12/31/2019 | 12/31/2018 | $ | % | ||||||||||||||||||||||||||||||
| Total Assets | $ | 1,064,452 | $ | 929,028 | $ | 135,424 | 15 | % | ||||||||||||||||||||||||||
| Total Loans | 903,923 | 755,659 | 148,264 | 20 | % | |||||||||||||||||||||||||||||
| Investments | 38,197 | 23,378 | 14,819 | 63 | % | |||||||||||||||||||||||||||||
| Earning Assets | 992,679 | 876,288 | 116,391 | 13 | % | |||||||||||||||||||||||||||||
| Non-Interest Bearing Deposits | 342,720 | 333,075 | 9,645 | 3 | % | |||||||||||||||||||||||||||||
| Core Deposits | 778,916 | 711,928 | 66,988 | 9 | % | |||||||||||||||||||||||||||||
| Total Deposits | 893,893 | 814,930 | 78,963 | 10 | % | |||||||||||||||||||||||||||||
| Borrowings | 29,717 | 12,051 | 17,666 | 147 | % | |||||||||||||||||||||||||||||
| Tangible Common Equity | 119,176 | 92,963 | 26,213 | 28 | % | |||||||||||||||||||||||||||||
| At the periods ended | Change $ | Change % | ||||||||||||||||||||||||||||||||
| Balance Sheet | 12/31/2019 | 9/30/2019 | 12/31/2018 | QoQ | YoY | QoQ | YoY | |||||||||||||||||||||||||||
| Cash and equivalents | $ | 114,342 | $ | 67,660 | $ | 78,705 | $ | 46,682 | $ | 35,637 | 69 | % | 45 | % | ||||||||||||||||||||
| Investment securities | 28,555 | 36,260 | 43,415 | (7,705 | ) | (14,860 | ) | -21 | % | -34 | % | |||||||||||||||||||||||
| Other investments | 4,402 | 4,402 | 3,536 | - | 866 | 0 | % | 24 | % | |||||||||||||||||||||||||
| Commercial loans | 389,746 | 402,303 | 341,184 | (12,557 | ) | 48,562 | -3 | % | 14 | % | ||||||||||||||||||||||||
| CRE loans | 502,929 | 484,606 | 451,851 | 18,323 | 51,078 | 4 | % | 11 | % | |||||||||||||||||||||||||
| Construction and land loans | 42,519 | 32,547 | 37,344 | 9,972 | 5,175 | 31 | % | 14 | % | |||||||||||||||||||||||||
| Other loans | 14,458 | 13,822 | 14,349 | 636 | 109 | 5 | % | 1 | % | |||||||||||||||||||||||||
| Loans | 949,652 | 933,278 | 844,728 | 16,374 | 104,924 | 2 | % | 12 | % | |||||||||||||||||||||||||
| Net deferred costs | 2,555 | 2,392 | 2,203 | 163 | 352 | 7 | % | 16 | % | |||||||||||||||||||||||||
| Allowance for loan losses | 11,075 | 10,413 | 10,800 | 662 | 275 | 6 | % | 3 | % | |||||||||||||||||||||||||
| Net loans | 941,132 | 925,257 | 836,131 | 15,875 | 105,001 | 2 | % | 13 | % | |||||||||||||||||||||||||
| Premises and equipment, net | 3,668 | 1,917 | 2,076 | 1,751 | 1,592 | 91 | % | 77 | % | |||||||||||||||||||||||||
| Bank owned life insurance | 22,316 | 22,156 | 17,806 | 160 | 4,510 | 1 | % | 25 | % | |||||||||||||||||||||||||
| Deferred income taxes, net | 6,173 | 5,247 | 5,803 | 926 | 370 | 18 | % | 6 | % | |||||||||||||||||||||||||
| Core Deposit Intangible | 264 | 278 | 286 | (14 | ) | (22 | ) | -5 | % | -8 | % | |||||||||||||||||||||||
| Goodwill | 7,350 | 7,350 | 7,350 | - | - | 0 | % | 0 | % | |||||||||||||||||||||||||
| Other assets and interest receivable | 23,832 | 24,082 | 10,564 | (250 | ) | 13,268 | -1 | % | 126 | % | ||||||||||||||||||||||||
| Total assets | $ | 1,152,034 | $ | 1,094,609 | $ | 1,005,672 | $ | 57,425 | $ | 146,362 | 5 | % | 15 | % | ||||||||||||||||||||
| Demand deposits | $ | 387,267 | $ | 373,289 | $ | 352,402 | $ | 13,978 | $ | 34,865 | 4 | % | 10 | % | ||||||||||||||||||||
| Interest bearing demand deposits | 25,178 | 22,896 | 32,650 | 2,282 | (7,472 | ) | 10 | % | -23 | % | ||||||||||||||||||||||||
| Money market & savings deposits | 455,436 | 398,242 | 392,290 | 57,194 | 63,146 | 14 | % | 16 | % | |||||||||||||||||||||||||
| Time deposits | 120,355 | 129,483 | 96,912 | (9,128 | ) | 23,443 | -7 | % | 24 | % | ||||||||||||||||||||||||
| Total deposits | 988,236 | 923,910 | 874,254 | 64,326 | 113,982 | 7 | % | 13 | % | |||||||||||||||||||||||||
| Borrowings | 10,000 | 20,000 | - | (10,000 | ) | 10,000 | -50 | % | 0 | % | ||||||||||||||||||||||||
| Subordinated debentures, net | 4,977 | 4,973 | 4,960 | 4 | 17 | 0 | % | 0 | % | |||||||||||||||||||||||||
| Other liabilities | 18,565 | 16,724 | 5,379 | 1,841 | 13,186 | 11 | % | N/A | ||||||||||||||||||||||||||
| Total liabilities | 1,021,778 | 965,607 | 884,593 | 56,171 | 137,185 | 6 | % | 16 | % | |||||||||||||||||||||||||
| Common stock | 106,427 | 105,711 | 104,563 | 716 | 1,864 | 1 | % | 2 | % | |||||||||||||||||||||||||
| Retained earnings | 23,519 | 22,937 | 16,515 | 582 | 7,004 | 3 | % | 42 | % | |||||||||||||||||||||||||
| Other comprehensive income | 310 | 354 | 1 | (44 | ) | 309 | -12 | % | N/A | |||||||||||||||||||||||||
| Total shareholder’s equity | 130,256 | 129,002 | 121,079 | 1,254 | 9,177 | 1 | % | 8 | % | |||||||||||||||||||||||||
| Total liabilities and equity | $ | 1,152,034 | $ | 1,094,609 | $ | 1,005,672 | $ | 57,425 | $ | 146,362 | 5 | % | 15 | % | ||||||||||||||||||||
| Tangible book value per common share | $ | 15.16 | $ | 15.08 | $ | 14.20 | ||||||||||||||||||||||||||||
| Total shares outstanding | 8,092,966 | 8,052,549 | 7,993,908 | |||||||||||||||||||||||||||||||
| Core relationship deposits | 867,881 | 772,811 | 779,783 | 95,070 | 88,098 | |||||||||||||||||||||||||||||
| For the three months ended | Year ended | |||||||||||||||||||||||||||||||||
| Performance Ratios | 12/31/2019 | 9/30/2019 | 12/31/2018 | 12/31/2019 | 12/31/2018 | |||||||||||||||||||||||||||||
| Return on average assets | 0.20 | % | 0.75 | % | 0.85 | % | 0.66 | % | 0.94 | % | ||||||||||||||||||||||||
| Return on average tangible common equity | 1.87 | % | 6.58 | % | 7.43 | % | 5.87 | % | 9.37 | % | ||||||||||||||||||||||||
| Efficiency ratio | 83.76 | % | 71.82 | % | 68.05 | % | 73.52 | % | 66.68 | % | ||||||||||||||||||||||||
| Net Interest Margin | ||||||||||||||||||||||||||||||||||
| Net interest margin | 3.90 | % | 4.19 | % | 4.09 | % | 4.12 | % | 4.09 | % | ||||||||||||||||||||||||
| Average earning assets yield | 4.72 | % | 5.05 | % | 4.73 | % | 4.94 | % | 4.67 | % | ||||||||||||||||||||||||
| Average investment yield | 2.85 | % | 3.12 | % | 3.08 | % | 3.08 | % | 2.72 | % | ||||||||||||||||||||||||
| Average loan yield | 5.26 | % | 5.30 | % | 5.12 | % | 5.30 | % | 5.25 | % | ||||||||||||||||||||||||
| Average total deposit rate | 0.84 | % | 0.86 | % | 0.65 | % | 0.80 | % | 0.55 | % | ||||||||||||||||||||||||
| Average borrowing rate | 3.32 | % | 2.87 | % | 6.17 | % | 3.13 | % | 5.37 | % | ||||||||||||||||||||||||
| Other Ratios | ||||||||||||||||||||||||||||||||||
| Average total loans to total deposits | 94.4 | % | 102.8 | % | 91.9 | % | 101.1 | % | 92.7 | % | ||||||||||||||||||||||||
| Average C&I loans to total loans | 41.8 | % | 41.7 | % | 40.9 | % | 41.5 | % | 43.0 | % | ||||||||||||||||||||||||
| Average non-interest bearing deposits to total deposits | 38.5 | % | 37.8 | % | 41.9 | % | 38.3 | % | 40.9 | % | ||||||||||||||||||||||||
| Average core deposits to total deposits | 87.1 | % | 84.6 | % | 89.0 | % | 87.1 | % | 87.4 | % | ||||||||||||||||||||||||
| At the periods ended | ||||||||||||||||||||||||||||||||||
| Capital Ratios - Bank | 12/31/2019 | 9/30/2019 | 12/31/2018 | |||||||||||||||||||||||||||||||
| Tier 1 leverage ratio | 10.44 | % | 11.22 | % | 11.31 | % | ||||||||||||||||||||||||||||
| Common equity tier 1 capital ratio | 10.38 | % | 10.68 | % | 10.94 | % | ||||||||||||||||||||||||||||
| Tier 1 risk-based capital ratio | 10.38 | % | 10.68 | % | 10.94 | % | ||||||||||||||||||||||||||||
| Total risk-based capital ratio | 11.79 | % | 12.09 | % | 12.52 | % | ||||||||||||||||||||||||||||
| At the periods ended | ||||||||||||||||||||||||||||||||||
| Non-Performing Assets | 12/31/2019 | 9/30/2019 | 12/31/2018 | |||||||||||||||||||||||||||||||
| Non-Accrual Loans | $ | 2,753 | $ | 4,675 | $ | 4,463 | ||||||||||||||||||||||||||||
| Restructured Loans | - | - | ||||||||||||||||||||||||||||||||
| Total non-performing loans (NPL) | 2,753 | 4,675 | 4,463 | |||||||||||||||||||||||||||||||
| Other Real Estate Owned | - | - | - | |||||||||||||||||||||||||||||||
| Total non-performing assets (NPA) | $ | 2,753 | $ | 4,675 | $ | 4,463 | ||||||||||||||||||||||||||||
| Restructured Loans Performing | 646 | 697 | 930 | |||||||||||||||||||||||||||||||
| Quarterly Net (Charge-offs)/Recoveries | $ | 338 | $ | 1,588 | $ | 9 | ||||||||||||||||||||||||||||
| NPAs / Assets % | 0.24 | % | 0.43 | % | 0.44 | % | ||||||||||||||||||||||||||||
| NPAs / Loans and OREO % | 0.29 | % | 0.50 | % | 0.53 | % | ||||||||||||||||||||||||||||
| Loan Loss Reserves / Loans (%) | 1.17 | % | 1.12 | % | 1.28 | % | ||||||||||||||||||||||||||||
| Loan Loss Reserves / NPLs (%) | 402 | % | 223 | % | 242 | % | ||||||||||||||||||||||||||||
