John Marshall Bank (OTCQB: JMSB) (the “Bank”) reported net income of $8.3 million for the year ended December 31, 2016, a decrease of $566 thousand, or 6.4%, as compared to net income of $8.9 million for the year ended December 31, 2015. Net income per diluted share decreased during 2016 to $0.79 per share, compared to $0.85 per share during 2015. The decrease in year-over-year earnings was attributable to an increased loan loss provision of $3.8 million in 2016 compared to $1.2 million in 2015. The Bank incurred a $1.9 million charge-off during the first quarter, as previously disclosed in the earnings release for the first quarter of 2016. The Bank also incurred an additional $415 thousand charge-off related to the same borrower in the third quarter of 2016.

For the twelve months ended December 31, 2016 the Bank produced a 0.85% return on average assets and 7.27% on average equity, compared to 1.04% and 8.44%, respectively during 2015.

For the fourth quarter of 2016, the Bank reported net income of $2.7 million, a 16.8% increase as compared to $2.3 million during the same period in 2015. Net income per diluted share was $0.25 during the three months ended December 31, 2016, compared to $0.22 per diluted share during the same period in 2015. The Bank’s fourth quarter results produced an annualized return of 1.03% on average assets and 9.09% on average equity, compared to 1.02% and 8.44%, respectively, for the same period a year ago. As of December 31, 2016, the Bank’s tangible book value per share was $11.72, up 7.4% compared to $10.91 as of December 31, 2015.

The Bank’s capital ratios remain well above regulatory minimums for well capitalized banks. As of December 31, 2016, the Bank’s total risk-based capital ratio was 12.3%, compared to 13.6% at December 31, 2015.

Balance Sheet Review

At December 31, 2016, total assets were $1.08 billion, an increase of $146.5 million, or 15.8%, from total assets of $928.6 million at December 31, 2015. Gross loans increased $112.9 million, or 14.4%, to $896.0 million at December 31, 2016, compared to $783.2 million at December 31, 2015. The Bank’s investment portfolio comprised of held-to-maturity, available-for-sale, and restricted securities, increased to $100.3 million at December 31, 2016, compared to $84.8 million at December 31, 2015. As of December 31, 2016 the Bank held $44.1 million of its investment portfolio as held-to-maturity, and $48.3 million as available-for-sale. The Bank had no other real estate owned (“OREO”) as of December 31, 2016 and 2015.

The Bank purchased $18.0 million of bank owned life insurance during the first quarter of 2016. Bank owned life insurance represents insurance policies on officers and directors of the Bank. The cash values of the policies are estimates using information provided by insurance carriers. These policies are carried at their cash surrender value, which approximates their fair value. As of December 31, 2016, the estimated fair value was $18.5 million.

Total deposits were $832.9 million at December 31, 2016, representing an increase of $102.0 million, or 14.0%, compared to $730.9 million at December 31, 2015. Total borrowings, consisting of Federal Home Loan Bank advances and customer repurchase agreements, were $118.2 million at December 31, 2016, an increase of $35.2 million, or 42.5%, compared to $83.0 million at December 31, 2015.

QwickRate certificates of deposit decreased by $2.2 million from $25.0 million at December 31, 2015 to $22.8 million at December 31, 2016. CDARs increased $8.9 million from $62.9 million at December 31, 2015 to $71.8 million at December 31, 2016. Brokered certificates of deposit increased by $24.4 million from $22.5 million at December 31, 2015 to $46.9 million at December 31, 2016. Year-over-year Federal Home Loan Bank advances increased by $33.0 million, or 46.5%. Core customer funding sources increased by $82.0 million, or 11.8%, from $695.3 million at December 31, 2015 to $777.3 million at December 31, 2016.

Total shareholders’ equity was $118.8 million at December 31, 2016, an increase of $9.5 million, or 8.7%, compared to $109.3 million at December 31, 2015. The majority of the increase in shareholders’ equity is attributed to net income of $8.3 million during 2016, and net proceeds from the exercise of 120,575 director and employee stock options during the year. Total common shares outstanding increased from 10,016,574 at December 31, 2015 to 10,137,149 at December 31, 2016.

Income Statement Review

Net interest income

Net interest income, the Bank’s primary source of revenue, was $36.1 million for the year ended December 31, 2016, up 7.2% from $33.7 million for the year ended December 31, 2015. The net interest margin was 3.79% for the year ended December 31, 2016 as compared to 4.01% for the year ended December 31, 2015. The decline in the net interest margin during 2016 is primarily attributed to a decline in the Bank’s yield on earning assets to 4.45% during 2016 from 4.64% in 2015, which is substantially the result of a 19 basis point year-over-year decline in loan yield. The average balance for loans, net of unearned income, increased $92.5 million and securities increased $11.3 million from December 31, 2015 to December 31, 2016.

Net interest income was $9.5 million for the fourth quarter of 2016, compared to $8.7 million for the same period in 2015. The net interest margin was 3.77% for the fourth quarter of 2016, compared to 3.88% during the fourth quarter of 2015. The decline in the net interest margin is mostly attributed to the decline in the Bank’s yield on loans from 4.96% during the fourth quarter of 2015 to 4.85% during the fourth quarter of 2016.

Despite the decline in the net interest margin over the past year, net interest income increased by 7.2% during 2016, compared to 2015, resulting primarily from a $113.1 million, or 13.5%, increase in average earning assets from December 31, 2016, compared to December 31, 2015.

Provision for loan losses

The Bank recognized a provision for loan losses of $3.8 million for the year ended December 31, 2016, compared to provision of $1.2 million for the year ended December 31, 2015. The Bank reported net loan charge-offs of $2.7 million in 2016, compared to net loan charge-offs of $573 thousand in 2015. During the first quarter 2016, the Bank incurred a $1.9 million charge-off as previously disclosed in the earnings release for the first quarter of 2016. During the third quarter 2016, the Bank incurred an additional $415 thousand charge-off related to the same borrower.

The Bank’s provision for loan losses was $480 thousand during the fourth quarter of 2016, compared to $145 thousand during the fourth quarter of 2015. The increase for the quarter was attributable to the loan growth which occurred in the fourth quarter of 2016. In addition, the Bank reported net loan charge-offs of $77 thousand during the fourth quarter of 2016, compared to net recoveries of $48 thousand in the same period in 2015.

Noninterest income

The Bank’s noninterest income consists primarily of bank owned life insurance income and service charges on deposit accounts. Loan fees are included in interest income on the loan portfolio and not reported as noninterest income.

For the year ended December 31, 2016, the Bank reported total noninterest income of $1.0 million, compared to $579 thousand during the year ended December 31, 2015, an increase of 76.7%. For the three months ended December 31, 2016, the Bank’s noninterest income was $286 thousand, compared to $157 thousand during the same period in 2015. The year-over-year increase for both the three and twelve month periods ended December 31, 2016 was attributable to income related to bank owned life insurance that was purchased in the first quarter of 2016. The year-over-year decline in service charge income was partially related to fees waived during our core conversion in April 2016.

Noninterest expense

The largest component of the Bank’s noninterest expense is employee salaries and benefits. Salaries and employee benefits expense increased by 9.9% during 2016 to $12.5 million, compared to $11.4 million during 2015. All other noninterest expense increased by $570 thousand during 2016, from $7.9 million in 2015 to $8.4 million in 2016, an increase of 7.3%.

For the three months ended December 31, 2016, salaries and employee benefits expense increased 16.7% to $3.3 million, compared to $2.9 million for the same period in 2015. All other noninterest expenses totaled $2.1 million during the fourth quarter of 2016, a decrease of 8.3% compared to $2.3 million reported for the same period in 2015.

The increase in other operating expense was associated to higher FDIC insurance related to growth, franchise tax, loan collection fees related to the non-performing loans and one-time costs incurred related to the Bank’s core system conversion which took place in April 2016. There was $1 thousand in other real estate owned expense in 2016.

Asset Quality Review

As of December 31, 2016, non-performing assets were 0.01% of total assets, down from 0.32% at December 31, 2015. The Bank’s allowance for loan losses covered non-performing loans by 149.1 times as of December 31, 2016, compared to 2.4 times as of December 31, 2015. The majority of the decrease in non-performing assets was related to $2.5 million in loans to one borrower of which $310 thousand was charged-off in 2016 and the remaining balance of $2.2 million was paid-off.

As of December 31, 2016, there were $1.0 million in loans 30-89 days past due and still accruing interest. As of December 31, 2015 there were no loans 30-89 days past due and still accruing interest.

Troubled debt restructurings were $508 thousand at December 31, 2016, a decrease of $877 thousand, or 65.5%, from $1.5 million as of December 31, 2015. All troubled debt restructurings were performing in accordance with modified terms as of December 31, 2016. There was no other real estate owned as of December 31, 2016 and 2015.

John Marshall Bank is headquartered in Reston, Virginia and has five full-service branches located in Reston, Leesburg, Arlington, Alexandria and Rockville. The Bank also has two limited-service commercial branches located in Washington, DC and Tysons Corner, VA. Further information on the Bank can be obtained by visiting its website at www.johnmarshallbank.com.

This press release contains forward-looking statements within the meaning of the Securities and Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Bank operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be identified by use of words such as “may,” “will,” “anticipates,” “believes,” “expects,” “plans,” “estimates,” “potential,” “continue,” “should,” and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Bank’s market, interest rates and interest rate policy, competitive factors, and other conditions which by their nature, are not susceptible to accurate forecast, and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results may differ materially from those indicated herein. Readers are cautioned against placing undue reliance on any such forward-looking statements. The Bank’s past results are not necessarily indicative of future performance.

         
John Marshall Bank
 
Balance Sheets
(In thousands)
 
% Change
December 31, September 30, December 31, Last Three Year Over
2016 2016 2015 Months Year
Assets (Unaudited) (Unaudited) (Audited)
 
Cash and due from banks $ 4,898 $ 7,610 $ 8,217 -35.6 % -40.4 %
Interest-bearing deposits in banks 49,717 31,067 46,738 60.0 % 6.4 %
Federal funds sold 60 - - - - n/a n/a
Securities available-for-sale, at fair value 48,312 48,397 32,145 -0.2 % 50.3 %

Securities held-to-maturity, fair value of $44,067 at 12/31/2016, $46,443 at 9/30/2016 and $46,780 at 12/31/2015

44,073 45,292 46,479 -2.7 % -5.2 %
Restricted securities, at cost 7,873 6,959 6,210 13.1 % 26.8 %
Loans, net of allowance for loan losses of $8,202 at
12/31/2016; $7,799 at 9/30/2016 and $7,130 at 12/31/2015 886,220 845,681 774,633 4.8 % 14.4 %
Bank premises and equipment, net 2,471 2,520 2,690 -2.0 % -8.1 %
Accrued interest receivable 2,988 2,527 2,318 18.2 % 28.9 %
Bank owned life insurance 18,540 18,377 - - 0.9 % n/a
Other assets   10,014     9,047   9,190   10.7 % 9.0 %
 
Total assets $ 1,075,166   $ 1,017,477 $ 928,620   5.7 % 15.8 %
 
Liabilities and Shareholders' Equity
 
Liabilities
Deposits:
Non-interest bearing demand deposits $ 195,065 $ 162,899 $ 136,361 19.7 % 43.1 %
Interest bearing demand deposits 211,495 236,504 235,313 -10.6 % -10.1 %
Savings deposits 6,856 6,038 17,154 13.6 % -60.0 %
Time deposits   419,449     388,438   342,025   8.0 % 22.6 %
Total deposits 832,865 793,878 730,853 4.9 % 14.0 %
Federal funds purchased - - 4,990 - - n/a n/a
Repurchase agreements 14,206 15,142 11,972 -6.2 % 18.7 %
Federal Home Loan Bank advances 104,000 83,000 71,000 25.3 % 46.5 %
Accrued interest payable 220 210 109 5.0 % 101.8 %
Other liabilities   5,080     4,043   5,384   25.6 % -5.6 %
Total liabilities   956,371     901,263   819,318   6.1 % 16.7 %
 
Shareholders' Equity

Preferred stock, par value $5 per share; authorized 1,000,000 shares; none issued

- - - - - - - - - -

Common stock, nonvoting, par value $5 per share; authorized 1,000,000 shares; none issued

- - - - - - - - - -

Common stock, voting, par value $5 per share; authorized 20,000,000 shares; issued and outstanding, 10,137,149 shares at 12/31/2016, 10,129,147 at 9/30/2016, and 10,016,574 at 12/31/2015

50,686 50,646 50,083 0.1 % 1.2 %
Additional paid-in capital 32,112 31,797 31,313 1.0 % 2.6 %
Retained earnings 36,454 33,752 28,153 8.0 % 29.5 %
Accumulated other comprehensive income (loss)   (457 )   19   (247 ) -2445.9 % -85.0 %
 
Total shareholders' equity   118,795     116,214   109,302   2.2 % 8.7 %
 
Total liabilities and shareholders' equity $ 1,075,166   $ 1,017,477 $ 928,620   5.7 % 15.8 %
 
           
John Marshall Bank
Statements of Income
 
(Dollar amounts in thousands, except per share data)
 
Three Months Ended Twelve Months Ended
December 31, December 31,
2016 2015 % Change 2016 2015 % Change
(Unaudited) (Unaudited) (Unaudited) (Audited)
Interest and Dividend Income
Interest and fees on loans $ 10,617 $ 9,684 9.6 % $ 40,250 $ 37,145 8.4 %
Interest on investment securities, taxable 398 321 24.0 % 1,433 1,280 12.0 %
Interest on investment securities, tax-exempt 50 26 92.3 % 170 104 63.5 %
Dividends 93 82 13.4 % 341 296 15.2 %
Interest on deposits in banks   47   29 62.1 %   168   65 158.5 %
Total interest and dividend income   11,205   10,142 10.5 %   42,362   38,890 8.9 %
 
Interest Expense
Deposits 1,407 1,254 12.2 % 5,411 4,572 18.4 %
Federal Home Loan Bank advances 245 175 40.0 % 784 580 35.2 %
Other short-term borrowings   12   12 0.0 %   60   61 -1.6 %
Total interest expense   1,664   1,441 15.5 %   6,255   5,213 20.0 %
 
Net interest income 9,541 8,701 9.7 % 36,107 33,677 7.2 %
 
Provision for loan losses   480   145 231.0 %   3,810   1,197 218.3 %
 
Net interest income after provision for loan losses   9,061   8,556 5.9 %   32,297   32,480 -0.6 %
 
Noninterest Income
Service charges on deposit accounts 94 113 -16.8 % 401 482 -16.8 %
Bank owned life insurance 163 - - n/a 540 - - n/a
Other service charges and fees 29 15 93.3 % 82 68 20.6 %
Other operating income   - -   29 n/a     - -   29 n/a  
Total noninterest income   286   157 82.2 %   1,023   579 76.7 %
 
Noninterest Expenses
Salaries and employee benefits 3,344 2,865 16.7 % 12,548 11,421 9.9 %
Occupancy expense of premises 417 437 -4.6 % 1,678 1,781 -5.8 %
Furniture and equipment expenses 286 280 2.1 % 1,228 1,065 15.3 %
Other real estate owned expenses - - 198 -100.0 % 1 247 -99.6 %
Other operating expenses   1,380   1,356 1.8 %   5,523   4,767 15.9 %
Total noninterest expenses   5,427   5,136 5.7 %   20,978   19,281 8.8 %
 
Income before income taxes 3,920 3,577 9.6 % 12,342 13,778 -10.4 %
 
Income tax expense  

1,218

  1,263 -3.6 %  

4,041

  4,911 -17.7 %
 
Net income $ 2,702 $ 2,314 16.8 % $ 8,301 $ 8,867 -6.4 %
 
Earnings Per Share
Basic $ 0.27 $ 0.23 17.4 % $ 0.82 $ 0.89 -7.9 %
Diluted $ 0.25 $ 0.22 13.6 % $ 0.79 $ 0.85 -7.1 %
 
               
John Marshall Bank
 
Loan, Deposit and Borrowing Detail (Unaudited)
(Dollar amounts in thousands)
 
December 31, 2016 September 30, 2016 December 31, 2015 Percentage Change
Loans $ Amount % of Total $ Amount % of Total $ Amount % of Total Last 3 Mos Last 12 Mos
Mortgage loans on real estate
Commercial $ 519,857 58.0 % $ 503,576 58.9 % $ 441,309 56.3 % 3.2 % 17.8 %
Construction and land development 180,318 20.1 % 173,867 20.3 % 150,786 19.3 % 3.7 % 19.6 %
Residential   107,534   12.0 %   97,758   11.4 %   95,496   12.2 % 10.0 % 12.6 %
Total mortgage loans on real estate $ 807,709 90.1 % $ 775,201 90.7 % $ 687,591 87.8 % 4.2 % 17.5 %
Commercial loans 86,498 9.7 % 78,120 9.1 % 94,371 12.0 % 10.7 % -8.3 %
Consumer loans   1,820   0.2 %   1,655   0.2 %   1,203   0.2 % 10.0 % 51.3 %
Total loans $ 896,027 100.0 % $ 854,976 100.0 % $ 783,165 100.0 % 4.8 % 14.4 %
Less: Allowance for loan losses (8,202 ) (7,799 ) (7,130 )
Net deferred loan fees   (1,605 )   (1,496 )   (1,402 )
Net loans $ 886,220   $ 845,681   $ 774,633  
 
 
December 31, 2016 September 30, 2016 December 31, 2015 Percentage Change
Deposits $ Amount % of Total $ Amount % of Total $ Amount % of Total Last 3 Mos Last 12 Mos
Noninterest-bearing demand deposits $ 195,065 23.4 % $ 162,899 20.5 % $ 136,361 18.7 % 19.7 % 43.1 %
Interest-bearing demand deposits:
NOW accounts 12,739 1.5 % 16,866 2.1 % 23,496 3.2 % -24.5 % -45.8 %
Money market accounts 187,748 22.6 % 209,633 26.4 % 211,817 29.0 % -10.4 % -11.4 %
Savings accounts 6,856 0.8 % 6,038 0.8 % 17,154 2.3 % 13.5 % -60.0 %
Certificates of deposit
$250,000 or more 187,568 22.5 % 162,552 20.5 % 137,381 18.8 % 15.4 % 36.5 %
Less than $250,000 101,368 12.2 % 102,406 12.9 % 94,164 12.9 % -1.0 % 7.7 %
QwickRate® Certificates of deposit 22,844 2.8 % 21,104 2.7 % 25,018 3.4 % 8.2 % -8.7 %
CDARS® 71,799 8.6 % 74,131 9.3 % 62,943 8.6 % -3.1 % 14.1 %
Brokered deposits   46,878   5.6 %   38,249   4.8 %   22,519   3.1 % 22.6 % 108.2 %
Total deposits $ 832,865   100.0 % $ 793,878   100.0 % $ 730,853   100.0 % 4.9 % 14.0 %
 
Borrowings
Federal funds purchased $ - 0.0 % $ 4,990 4.8 % $ - 0.0 % n/a n/a
Customer repurchase agreements 14,206 12.0 % 15,142 14.7 % 11,972 14.4 % -6.2 % 18.7 %
Federal Home Loan Bank advances   104,000   88.0 %   83,000   80.5 %   71,000   85.6 % 25.3 % 46.5 %
Total borrowings $ 118,206   100.0 % $ 103,132   100.0 % $ 82,972   100.0 % 14.6 % 42.5 %
 
Total deposits and borrowings $ 951,071   $ 897,010   $ 813,825   6.0 % 16.9 %
 
Core customer funding sources (1) $ 777,349 81.7 % $ 749,667 83.6 % $ 695,288 85.4 % 3.7 % 11.8 %
Wholesale funding sources (2)   173,722   18.3 %   147,343   16.4 %   118,537   14.6 % 17.9 % 46.6 %
Total funding sources $ 951,071   100.0 % $ 897,010   100.0 % $ 813,825   100.0 % 6.0 % 16.9 %
 
(1)   Includes CDARS(r), which are all reciprocal deposits maintained by Bank customers, and repurchase agreements, which represent sweep accounts tied to customer operating accounts.
(2) Consists of QwickRate(r) certificates of deposit, brokered deposits,Federal Home Loan Bank advances and Federal funds purchased
 
           
John Marshall Bank
Average Balance Sheets, Interest and Rates (unaudited)
(Dollar amounts in thousands)
 
Three Months Ended December 31, 2016 Three Months Ended December 31, 2015
Interest Average Interest Average
Average Income- Yields Average Income- Yields
Balance Expense /Rates Balance Expense /Rates
Assets
Securities $ 100,732 $ 541 2.14 % $ 86,130 $ 429 1.98 %
Loans, net of unearned income 871,311 10,617 4.85 % 775,132 9,684 4.96 %
Interest-bearing deposits in other banks 35,099 47 0.53 % 29,288 29 0.39 %
Federal funds sold   46   - 0.00 %   -   - 0.00 %
Total interest-earning assets $ 1,007,188 $ 11,205 4.43 % $ 890,550 $ 10,142 4.52 %
Other assets   31,887   13,826
Total assets $ 1,039,075 $ 904,376
Liabilities & Shareholders' equity
Interest-bearing deposits
NOW accounts $ 13,353 $ 13 0.39 % $ 16,500 $ 12 0.29 %
Money market accounts 207,008 245 0.47 % 206,162 279 0.54 %
Savings accounts 6,457 4 0.25 % 9,043 10 0.44 %
Time deposits   408,648   1,145 1.11 %   338,159   953 1.12 %
Total interest-bearing deposits $ 635,466 $ 1,407 0.88 % $ 569,864 $ 1,254 0.87 %

Securities sold under agreement to repurchase and federal funds purchased

$ 13,644 $ 12 0.35 % $ 12,391 $ 12 0.38 %
Other borrowed funds   90,207   245 1.08 %   77,511   175 0.90 %
Total interest-bearing liabilities $ 739,317 $ 1,664 0.90 % $ 659,766 $ 1,441 0.87 %
Demand deposits and other liabilities   181,472   135,884
Total liabilities $ 920,789 $ 795,650
Shareholders' equity   118,286   108,726
Total liabilities and shareholders' equity $ 1,039,075 $ 904,376
Interest rate spread 3.53 % 3.65 %
Net interest income and margin $ 9,541 3.77 % $ 8,701 3.88 %
 
 
Twelve Months Ended December 31, 2016 Twelve Months Ended December 31, 2015
Interest Average Interest Average
Average Income- Yields Average Income- Yields
Balance Expense /Rates Balance Expense /Rates
Assets
Securities $ 94,518 $ 1,944 2.06 % $ 83,171 $ 1,680 2.02 %
Loans, net of unearned income 824,830 40,250 4.88 % 732,311 37,145 5.07 %
Interest-bearing deposits in other banks 32,714 168 0.51 % 23,492 65 0.28 %
Federal funds sold   16   - 0.00 %   -   - 0.00 %
Total interest-earning assets $ 952,078 $ 42,362 4.45 % $ 838,974 $ 38,890 4.64 %
Other assets   27,991   15,160
Total assets $ 980,069 $ 854,134
Liabilities & Shareholders' equity
Interest-bearing deposits
NOW accounts $ 15,528 $ 61 0.39 % $ 14,989 $ 43 0.29 %
Money market accounts 213,766 1,081 0.51 % 201,563 1,075 0.53 %
Savings accounts 9,671 40 0.41 % 7,163 26 0.36 %
Time deposits   378,109   4,229 1.12 %   318,342   3,428 1.08 %
Total interest-bearing deposits $ 617,074 $ 5,411 0.88 % $ 542,057 $ 4,572 0.84 %

Securities sold under agreement to repurchase and federal funds purchased

$ 14,769 $ 60 0.41 % $ 14,538 $ 61 0.42 %
Other borrowed funds   75,995   784 1.03 %   62,096   580 0.93 %
Total interest-bearing liabilities $ 707,838 $ 6,255 0.88 % $ 618,691 $ 5,213 0.84 %
Demand deposits and other liabilities   158,032   130,441
Total liabilities $ 865,870 $ 749,132
Shareholders' equity   114,199   105,002
Total liabilities and shareholders' equity $ 980,069 $ 854,134
Interest rate spread 3.57 % 3.80 %
Net interest income and margin $ 36,107 3.79 % $ 33,677 4.01 %
 
       
John Marshall Bank
Financial Highlights (Unaudited)
(Dollar amounts in thousands, except per share data)
 
At or For the Three Months Ended At or For the Year Ended
December 31, December 31,
2016 2015 2016 2015
Per share Data and Shares Outstanding
Earnings per share - basic $ 0.27 $ 0.23 $ 0.82 $ 0.89
Earnings per share - diluted $ 0.25 $ 0.22 $ 0.79 $ 0.85
Tangible book value per share $ 11.72 $ 10.91 $ 11.72 $ 10.91
Weighted average common shares (basic) 10,133,799 10,013,072 10,069,537 9,993,231
Weighted average common shares (diluted) 10,626,741 10,517,743 10,561,837 10,483,431
Common shares outstanding at end of period 10,137,149 10,016,574 10,137,149 10,016,574
 
Performance Ratios
Return on average assets (annualized) 1.03 % 1.02 % 0.85 % 1.04 %
Return on average equity (annualized) 9.09 % 8.44 % 7.27 % 8.44 %
Yield on earning assets (annualized) 4.43 % 4.52 % 4.45 % 4.64 %
Cost of interest bearing liabilities (annualized) 0.88 % 0.87 % 0.88 % 0.84 %
Net interest spread 3.53 % 3.65 % 3.57 % 3.80 %
Net interest margin 3.77 % 3.88 % 3.79 % 4.01 %
Noninterest income as a percentage of average assets (annualized) 0.11 % 0.07 % 0.10 % 0.07 %
Noninterest expense to average assets (annualized) 2.08 % 2.25 % 2.14 % 2.26 %
Efficiency ratio 55.2 % 58.0 % 56.5 % 56.3 %
 
Asset Quality
Loans 30-89 days past due and accruing interest $ 1,008 $ - $ 1,008 $ -
Non-accrual loans $ 55 $ 2,957 $ 55 $ 2,957
Other real estate owned $ - $ - $ - $ -
Non-performing assets (1) $ 55 $ 2,957 $ 55 $ 2,957
Non-performing assets to total assets 0.01 % 0.32 % 0.01 % 0.32 %
Allowance for loan losses to total loans 0.92 % 0.91 % 0.92 % 0.91 %
Allowance for loan losses to non-performing loans 149.1 2.4 149.1 2.4
Net loan chargeoffs (recoveries) $ 77 $ (48 ) $ 2,738 $ 573
Net charge-offs (recoveries) to average loans (annualized) 0.04 % (0.2 )% 0.29 % 0.08 %
Troubled debt restructurings (total) $ 508 $ 1,474 $ 508 $ 1,474
Performing in accordance with modified terms $ 508 $ 1,474 $ 508 $ 1,474
Not performing in accordance with modified terms $ - $ - $ - $ -
 
Regulatory Capital Ratios
Total risk-based capital ratio 12.3 % 13.6 % 12.3 % 13.6 %
Tier 1 risk-based capital ratio 11.5 % 12.7 % 11.5 % 12.7 %
Leverage ratio 11.5 % 12.1 % 11.5 % 12.1 %
Common equity tier 1 ratio 11.5 % 12.7 % 11.5 % 12.7 %
 
Other Information
Effective income tax rate 31.1 % 35.3 % 32.7 % 35.6 %
Tangible equity / tangible assets 11.0 % 11.8 % 11.0 % 11.8 %
Average tangible equity / average tangible assets 11.4 % 12.0 % 11.7 % 12.3 %
Number of full time equivalent employees 111 106 111 106
# Full service branch offices 5 5 5 5
# Loan production or limited service branch offices 2 1 2 1
 
(1)   Non-performing assets consist of non-accrual loans, loans 90 day or more past due and still accruing interest, and other real estate owned. Does not include troubled debt restructurings ("TDRs") which were accruing interest at the date indicated.