The Board of Directors declared a cash dividend of
Discussing results,
As of
- The following table highlights the changes in the loan portfolio for the three months and year ended
June 30, 2023 :
Loan Portfolio Changes | ||||||||||||||||||
Balance | Balance | Change ($) | Change (%) | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
National Lending Purchased | $ | 1,480,119 | $ | 1,460,598 | $ | 19,521 | 1.34 | % | ||||||||||
National Lending Originated | 987,832 | 994,707 | (6,875 | ) | (0.69 | %) | ||||||||||||
SBA National | 24,873 | 25,537 | (664 | ) | (2.60 | %) | ||||||||||||
Community Banking | 27,536 | 28,953 | (1,417 | ) | (4.89 | %) | ||||||||||||
Total | $ | 2,520,360 | $ | 2,509,795 | $ | 10,565 | 0.42 | % |
Balance | Balance | Change ($) | Change (%) | ||||||||||||
(Dollars in thousands) | |||||||||||||||
National Lending Purchased | $ | 1,480,119 | $ | 477,682 | $ | 1,002,437 | 209.85 | % | |||||||
National Lending Originated | 987,832 | 759,229 | 228,603 | 30.11 | % | ||||||||||
SBA National | 24,873 | 33,046 | (8,173 | ) | (24.73 | %) | |||||||||
Community Banking | 27,536 | 34,909 | (7,373 | ) | (21.12 | %) | |||||||||
Total | $ | 2,520,360 | $ | 1,304,866 | $ | 1,215,494 | 93.15 | % |
Loans generated by the Bank's National Lending Division for the quarter ended
An overview of the Bank’s National Lending Division portfolio follows:
National Lending Portfolio | |||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Purchased | Originated | Total | Purchased | Originated | Total | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Loans purchased or originated during the period: | |||||||||||||||||||||||
Unpaid principal balance | $ | 54,253 | $ | 84,171 | $ | 138,424 | $ | 37,032 | $ | 172,851 | $ | 209,883 | |||||||||||
Net investment basis | 48,783 | 84,171 | 132,954 | 36,502 | 172,851 | 209,353 | |||||||||||||||||
Loan returns during the period: | |||||||||||||||||||||||
Yield | 8.12 | % | 9.58 | % | 8.71 | % | 9.25 | % | 7.03 | % | 7.91 | % | |||||||||||
Total Return on Purchased Loans (1) | 8.12 | % | N/A | 8.12 | % | 9.25 | % | N/A | 9.25 | % | |||||||||||||
Year Ended | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Purchased | Originated | Total | Purchased | Originated | Total | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Loans purchased or originated during the period: | |||||||||||||||||||||||
Unpaid principal balance | $ | 1,314,783 | $ | 556,991 | $ | 1,871,774 | $ | 199,523 | $ | 587,840 | $ | 787,363 | |||||||||||
Net investment basis | 1,143,786 | 556,991 | 1,700,777 | 187,914 | 587,840 | 775,754 | |||||||||||||||||
Loan returns during the period: | |||||||||||||||||||||||
Yield | 7.93 | % | 8.84 | % | 8.36 | % | 8.91 | % | 6.73 | % | 7.65 | % | |||||||||||
Total Return on Purchased Loans (1) | 7.93 | % | N/A | 7.93 | % | 8.92 | % | N/A | 8.92 | % | |||||||||||||
Total loans as of period end: | |||||||||||||||||||||||
Unpaid principal balance | $ | 1,667,947 | $ | 987,832 | $ | 2,655,779 | $ | 512,006 | $ | 759,229 | $ | 1,271,235 | |||||||||||
Net investment basis | 1,480,119 | 987,832 | 2,467,951 | 477,682 | 759,229 | 1,236,911 | |||||||||||||||||
(1) The total return on purchased loans represents scheduled accretion, accelerated accretion, gains on real estate owned and other noninterest income recorded during the period divided by the average invested balance, which includes purchased loans held for sale, on an annualized basis. The total return on purchased loans does not include the effect of purchased loan charge-offs or recoveries during the period. Total return on purchased loans is considered a non-GAAP financial measure. See reconciliation in below table entitled “Total Return on Purchased Loans.”
- Deposits increased by
$649.5 million , or 50.4%, fromJune 30, 2022 . The increase was attributable to increases in time deposits of$791.9 million , or 622.0%, and money market deposits of$31.8 million , or 12.9%, partially offset by a decrease in demand deposits of$185.3 million , or 56.3%. The primary reason for the net increase in deposits was due to the increase in brokered time deposits, which increased by$600.4 million compared toJune 30, 2022 . The use of brokered time deposits is part of the Bank’s strategy to fund the loan purchases. The decrease in demand deposits was primarily due to a decrease in the Paycheck Protection Program (“PPP”) Liquidity Facility balance during the year endedJune 30, 2023 as the balance of PPP loans purchased byThe Loan Source, Inc. that remain outstanding decreased significantly during this period. - Shareholders’ equity increased by
$48.3 million , or 19.5%, fromJune 30, 2022 , primarily due to net income of$44.2 million , the issuance of 194 thousand shares of voting common stock, adding$8.0 million to shareholders’ equity, and stock-based compensation of$3.4 million , partially offset by the repurchase of 136 thousand shares of voting common stock at a weighted average price per share of$37.99 , which resulted in a$5.2 million decrease to shareholders’ equity.
Net income increased by
1. Net interest and dividend income before provision for loan losses increased by
- An increase in interest income earned on loans of
$29.9 million , primarily due to an increase in interest income earned on the National Lending Division’s originated and purchased portfolios, due to higher average balances in both portfolios and higher rates earned on the originated portfolio, partially offset by lower rates earned on the purchased portfolio; and - An increase in interest income earned on short-term investments of
$2.6 million , primarily due to higher rates earned; partially offset by, - An increase in deposit interest expense of
$17.0 million , due to higher interest rates and higher average balances in interest-bearing deposits; and - An increase in FHLB borrowings interest expense of
$5.3 million , primarily due to higher average balances.
The following table summarizes interest income and related yields recognized on the loan portfolios:
Interest Income and Yield on Loans | |||||||||||||||||
Three Months Ended | |||||||||||||||||
2023 | 2022 | ||||||||||||||||
Average | Interest | Average | Interest | ||||||||||||||
Balance | Income | Yield | Balance | Income | Yield | ||||||||||||
(Dollars in thousands) | |||||||||||||||||
Community Banking | $ | 28,071 | $ | 427 | 6.10 | % | $ | 35,028 | $ | 451 | 5.16 | % | |||||
SBA National | 25,706 | 705 | 11.00 | % | 33,788 | 522 | 6.20 | % | |||||||||
National Lending: | |||||||||||||||||
Originated | 994,616 | 23,762 | 9.58 | % | 720,101 | 12,622 | 7.03 | % | |||||||||
Purchased | 1,461,164 | 29,584 | 8.12 | % | 474,393 | 10,937 | 9.25 | % | |||||||||
Total National Lending | 2,455,780 | 53,346 | 8.71 | % | 1,194,494 | 23,559 | 7.91 | % | |||||||||
Total | $ | 2,509,557 | $ | 54,478 | 8.71 | % | $ | 1,263,310 | $ | 24,532 | 7.79 | % | |||||
Year Ended | |||||||||||||||||
2023 | 2022 | ||||||||||||||||
Average | Interest | Average | Interest | ||||||||||||||
Balance | Income | Yield | Balance | Income | Yield | ||||||||||||
(Dollars in thousands) | |||||||||||||||||
Community Banking | $ | 30,271 | $ | 1,915 | 6.33 | % | $ | 41,009 | $ | 2,143 | 5.23 | % | |||||
SBA National | 28,138 | 2,896 | 10.29 | % | 35,678 | 2,356 | 6.60 | % | |||||||||
SBA PPP | - | - | 0.00 | % | 633 | 17 | 2.69 | % | |||||||||
National Lending: | |||||||||||||||||
Originated | 922,438 | 81,534 | 8.84 | % | 627,786 | 42,256 | 6.73 | % | |||||||||
Purchased | 1,040,940 | 82,549 | 7.93 | % | 458,036 | 40,820 | 8.91 | % | |||||||||
Total National Lending | 1,963,378 | 164,083 | 8.36 | % | 1,085,822 | 83,076 | 7.65 | % | |||||||||
Total | $ | 2,021,787 | $ | 168,894 | 8.35 | % | $ | 1,163,142 | $ | 87,592 | 7.53 | % | |||||
The components of total income on purchased loans are set forth in the table below entitled “Total Return on Purchased Loans.” When compared to the quarter ended
Total Return on Purchased Loans | |||||||||||
Three Months Ended | |||||||||||
2023 | 2022 | ||||||||||
Income | Return (1) | Income | Return (1) | ||||||||
(Dollars in thousands) | |||||||||||
Regularly scheduled interest and accretion | $ | 24,821 | 6.81 | % | $ | 7,432 | 6.29 | % | |||
Transactional income: | |||||||||||
Gain on real estate owned | - | 0.00 | % | - | 0.00 | % | |||||
Accelerated accretion and loan fees | 4,763 | 1.31 | % | 3,505 | 2.96 | % | |||||
Total transactional income | 4,763 | 1.31 | % | 3,505 | 2.96 | % | |||||
Total | $ | 29,584 | 8.12 | % | $ | 10,937 | 9.25 | % | |||
Year Ended | |||||||||||
2023 | 2022 | ||||||||||
Income | Return (1) | Income | Return (1) | ||||||||
(Dollars in thousands) | |||||||||||
Regularly scheduled interest and accretion | $ | 69,788 | 6.70 | % | $ | 28,811 | 6.29 | % | |||
Transactional income: | |||||||||||
Gain on real estate owned | - | 0.00 | % | 31 | 0.01 | % | |||||
Accelerated accretion and loan fees | 12,761 | 1.23 | % | 12,009 | 2.62 | % | |||||
Total transactional income | 12,761 | 1.23 | % | 12,040 | 2.63 | % | |||||
Total | $ | 82,549 | 7.93 | % | $ | 40,851 | 8.92 | % | |||
(1) The total return on purchased loans represents scheduled accretion, accelerated accretion, and gains on real estate owned recorded during the period divided by the average invested balance, which includes purchased loans held for sale, on an annualized basis. The total return does not include the effect of purchased loan charge-offs or recoveries in the quarter. Total return is considered a non-GAAP financial measure.
2. Noninterest income decreased by
- A decrease in correspondent fee income of
$3.5 million from the recognition of correspondent fees and related net servicing income. Correspondent income for the quarters endedJune 30, 2023 and 2022 is comprised of the following components:
Three Months Ended | |||||||
2023 | 2022 | ||||||
(In thousands) | |||||||
Correspondent Fee | $ | 8 | $ | 1,067 | |||
Amortization of Purchased Accrued Interest | 132 | 1,451 | |||||
Earned Net Servicing Interest | 67 | 1,168 | |||||
Total | $ | 207 | $ | 3,686 | |||
The Bank has
- An increase in gain on sale of SBA loans of
$278 thousand , due to the sale of$5.4 million in SBA loans during the quarter endedJune 30, 2023 .
3. Noninterest expense increased by
- An increase in salaries and employee benefits expense of
$1.7 million , primarily due to increases in regular compensation, stock compensation expense, and incentive compensation expense; - An increase in deposit insurance expense of
$443 thousand , primarily due to the increase in average assets and decrease in Tier 1 leverage ratio, which increased the Bank’s assessment rate; and - An increase in other noninterest expense of
$408 thousand , primarily due to a one-time$338 thousand decrease in non-income tax expense that was reclassified out of other noninterest expense and into income tax expense during the quarter endedJune 30, 2022 and a$45 thousand increase in travel and meals and entertainment expense; and - An increase in loan expense of
$382 thousand , due to increases in general loan expense and collection expense.
4. Income tax expense increased by
As of
As of
As of
Investor Call Information
About
Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures, including tangible common shareholders’ equity, tangible book value per share, total return on purchased loans, and efficiency ratio. The Bank’s management believes that the supplemental non-GAAP information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.
Forward-Looking Statements
Statements in this press release that are not historical facts are 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, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the
NBN-F
BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
(Dollars in thousands, except share and per share data) | ||||||||
Assets | ||||||||
Cash and due from banks | $ | 2,515 | $ | 2,095 | ||||
Short-term investments | 195,394 | 169,984 | ||||||
Total cash and cash equivalents | 197,909 | 172,079 | ||||||
Available-for-sale debt securities, at fair value | 53,403 | 54,911 | ||||||
Equity securities, at fair value | 6,771 | 6,798 | ||||||
Total investment securities | 60,174 | 61,709 | ||||||
Loans: | ||||||||
Commercial real estate | 1,940,563 | 882,187 | ||||||
Commercial and industrial | 499,815 | 352,729 | ||||||
Residential real estate | 79,497 | 69,209 | ||||||
Consumer | 485 | 741 | ||||||
Total loans | 2,520,360 | 1,304,866 | ||||||
Less: Allowance for loan losses | 7,304 | 5,028 | ||||||
Loans, net | 2,513,056 | 1,299,838 | ||||||
Premises and equipment, net | 27,737 | 9,606 | ||||||
24,644 | 1,610 | |||||||
Loan servicing rights, net | 1,530 | 1,285 | ||||||
Bank-owned life insurance | 18,364 | 17,922 | ||||||
Other assets | 26,524 | 18,710 | ||||||
Total assets | $ | 2,869,938 | $ | 1,582,759 | ||||
Liabilities and Shareholders' Equity | ||||||||
Deposits: | ||||||||
Demand | $ | 143,738 | $ | 329,007 | ||||
Savings and interest checking | 596,347 | 585,274 | ||||||
Money market | 277,939 | 246,095 | ||||||
Time | 919,183 | 127,317 | ||||||
Total deposits | 1,937,207 | 1,287,693 | ||||||
562,615 | 15,000 | |||||||
Lease liability | 21,918 | 4,451 | ||||||
Other liabilities | 51,535 | 27,294 | ||||||
Total liabilities | 2,573,275 | 1,334,438 | ||||||
Commitments and contingencies | - | - | ||||||
Shareholders' equity | ||||||||
Preferred stock, | - | - | ||||||
Voting common stock, | 7,669 | 7,442 | ||||||
Non-voting common stock, | - | - | ||||||
Additional paid-in capital | 42,840 | 38,749 | ||||||
Retained earnings | 246,872 | 202,980 | ||||||
Accumulated other comprehensive loss | (718 | ) | (850 | ) | ||||
Total shareholders' equity | 296,663 | 248,321 | ||||||
Total liabilities and shareholders' equity | $ | 2,869,938 | $ | 1,582,759 |
STATEMENTS OF INCOME | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(Dollars in thousands, except share and per share data) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Interest and dividend income: | ||||||||||||||||
Interest and fees on loans | $ | 54,478 | $ | 24,532 | $ | 168,894 | $ | 87,592 | ||||||||
Interest on available-for-sale securities | 374 | 81 | 1,122 | 316 | ||||||||||||
Other interest and dividend income | 2,900 | 262 | 7,155 | 628 | ||||||||||||
Total interest and dividend income | 57,752 | 24,875 | 177,171 | 88,536 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 18,139 | 1,121 | 48,076 | 4,529 | ||||||||||||
5,430 | 115 | 10,225 | 493 | |||||||||||||
Obligation under capital lease agreements | 28 | 20 | 74 | 90 | ||||||||||||
Total interest expense | 23,597 | 1,256 | 58,375 | 5,112 | ||||||||||||
Net interest and dividend income before provision for loan losses | 34,155 | 23,619 | 118,796 | 83,424 | ||||||||||||
Provision (credit) for loan losses | 453 | (879 | ) | 2,303 | (2,462 | ) | ||||||||||
Net interest and dividend income after provision for loan losses | 33,702 | 24,498 | 116,493 | 85,886 | ||||||||||||
Noninterest income: | ||||||||||||||||
Fees for other services to customers | 448 | 410 | 1,589 | 1,646 | ||||||||||||
Gain on sales of SBA loans | 278 | - | 576 | - | ||||||||||||
Gain on sales of PPP loans | - | - | - | 86 | ||||||||||||
Net unrealized loss on equity securities | (81 | ) | (180 | ) | (208 | ) | (511 | ) | ||||||||
Gain (loss) on real estate owned, other repossessed collateral and premises and equipment, net | - | 100 | (73 | ) | 155 | |||||||||||
Correspondent fee income | 207 | 3,686 | 2,534 | 22,528 | ||||||||||||
Gain on termination of interest rate swap | - | - | 96 | - | ||||||||||||
Bank-owned life insurance income | 114 | 107 | 443 | 424 | ||||||||||||
Other noninterest income | 146 | 21 | 301 | 117 | ||||||||||||
Total noninterest income | 1,112 | 4,144 | 5,258 | 24,445 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 10,570 | 8,912 | 35,721 | 31,138 | ||||||||||||
Occupancy and equipment expense | 1,100 | 891 | 4,214 | 3,558 | ||||||||||||
Professional fees | 624 | 437 | 2,554 | 1,891 | ||||||||||||
Data processing fees | 1,305 | 1,203 | 4,995 | 4,544 | ||||||||||||
Marketing expense | 339 | 223 | 922 | 733 | ||||||||||||
Loan acquisition and collection expense | 673 | 291 | 2,514 | 3,202 | ||||||||||||
540 | 97 | 1,224 | 395 | |||||||||||||
Other noninterest expense | 1,210 | 802 | 4,392 | 3,322 | ||||||||||||
Total noninterest expense | 16,361 | 12,856 | 56,536 | 48,783 | ||||||||||||
Income before income tax expense | 18,453 | 15,786 | 65,215 | 61,548 | ||||||||||||
Income tax expense | 6,367 | 5,490 | 21,028 | 19,385 | ||||||||||||
Net income | $ | 12,086 | $ | 10,296 | $ | 44,187 | $ | 42,163 | ||||||||
Weighted-average shares outstanding: | ||||||||||||||||
Basic | 7,459,074 | 7,506,465 | 7,345,253 | 7,806,626 | ||||||||||||
Diluted | 7,523,508 | 7,617,933 | 7,413,932 | 7,902,610 | ||||||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 1.62 | $ | 1.37 | $ | 6.02 | $ | 5.40 | ||||||||
Diluted | 1.61 | 1.35 | 5.96 | 5.34 | ||||||||||||
Cash dividends declared per common share | $ | 0.01 | $ | 0.01 | $ | 0.04 | $ | 0.04 |
AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS | |||||||||||||||||
(Unaudited) | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Three Months Ended | |||||||||||||||||
2023 | 2022 | ||||||||||||||||
Interest | Average | Interest | Average | ||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||
Assets: | |||||||||||||||||
Interest-earning assets: | |||||||||||||||||
Investment securities | $ | 60,584 | $ | 374 | 2.48 | % | $ | 62,347 | $ | 81 | 0.52 | % | |||||
Loans (1) (2) | 2,509,557 | 54,478 | 8.71 | % | 1,263,310 | 24,532 | 7.79 | % | |||||||||
20,483 | 260 | 5.09 | % | 1,513 | 7 | 1.86 | % | ||||||||||
Short-term investments (3) | 201,493 | 2,640 | 5.26 | % | 168,059 | 255 | 0.61 | % | |||||||||
Total interest-earning assets | 2,792,117 | 57,752 | 8.30 | % | 1,495,229 | 24,875 | 6.67 | % | |||||||||
Cash and due from banks | 2,508 | 2,667 | |||||||||||||||
Other non-interest earning assets | 64,580 | 45,742 | |||||||||||||||
Total assets | $ | 2,859,205 | $ | 1,543,638 | |||||||||||||
Liabilities & Shareholders’ Equity: | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||
NOW accounts | $ | 567,746 | $ | 5,594 | 3.95 | % | $ | 410,628 | $ | 391 | 0.38 | % | |||||
Money market accounts | 252,560 | 1,785 | 2.83 | % | 263,540 | 215 | 0.33 | % | |||||||||
Savings accounts | 83,782 | 330 | 1.58 | % | 141,526 | 204 | 0.58 | % | |||||||||
Time deposits | 973,216 | 10,430 | 4.30 | % | 119,235 | 311 | 1.05 | % | |||||||||
Total interest-bearing deposits | 1,877,304 | 18,139 | 3.88 | % | 934,929 | 1,121 | 0.48 | % | |||||||||
472,440 | 5,430 | 4.61 | % | 15,000 | 115 | 3.08 | % | ||||||||||
Capital lease obligations | 21,972 | 28 | 0.51 | % | 4,615 | 20 | 1.74 | % | |||||||||
Total interest-bearing liabilities | 2,371,716 | 23,597 | 3.99 | % | 954,544 | 1,256 | 0.53 | % | |||||||||
Non-interest bearing liabilities: | |||||||||||||||||
Demand deposits and escrow accounts | 173,668 | 326,690 | |||||||||||||||
Other liabilities | 23,095 | 12,881 | |||||||||||||||
Total liabilities | 2,568,479 | 1,294,115 | |||||||||||||||
Shareholders' equity | 290,726 | 249,523 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,859,205 | $ | 1,543,638 | |||||||||||||
Net interest income | $ | 34,155 | $ | 23,619 | |||||||||||||
Interest rate spread | 4.31 | % | 6.14 | % | |||||||||||||
Net interest margin (4) | 4.91 | % | 6.34 | % | |||||||||||||
Cost of funds (5) | 3.72 | % | 0.39 | % | |||||||||||||
(1) Interest income and yield are stated on a fully tax-equivalent basis using the statutory tax rate. | |||||||||||||||||
(2) Nonaccrual loans are included in the computation of average, but unpaid interest has not been included for purposes of determining interest income. | |||||||||||||||||
(3) Short-term investments include FHLB overnight deposits and other interest-bearing deposits. | |||||||||||||||||
(4) Net interest margin is calculated as net interest income divided by total interest-earning assets. | |||||||||||||||||
(5) Cost of funds is calculated as total interest expense divided by total interest-bearing liabilities plus demand deposits and escrow accounts. |
AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS | |||||||||||||||||
(Unaudited) | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Year Ended | |||||||||||||||||
2023 | 2022 | ||||||||||||||||
Interest | Average | Interest | Average | ||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||
Assets: | |||||||||||||||||
Interest-earning assets: | |||||||||||||||||
Investment securities | $ | 60,760 | $ | 1,122 | 1.85 | % | $ | 64,560 | $ | 316 | 0.49 | % | |||||
Loans (1) (2) | 2,021,787 | 168,894 | 8.35 | % | 1,163,142 | 87,592 | 7.53 | % | |||||||||
10,600 | 397 | 3.75 | % | 1,306 | 26 | 1.99 | % | ||||||||||
Short-term investments (3) | 171,949 | 6,758 | 3.93 | % | 290,167 | 602 | 0.21 | % | |||||||||
Total interest-earning assets | 2,265,096 | 177,171 | 7.82 | % | 1,519,175 | 88,536 | 5.83 | % | |||||||||
Cash and due from banks | 2,525 | 2,681 | |||||||||||||||
Other non-interest earning assets | 78,986 | 49,503 | |||||||||||||||
Total assets | $ | 2,346,607 | $ | 1,571,359 | |||||||||||||
Liabilities & Shareholders’ Equity: | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||
NOW accounts | $ | 539,022 | $ | 15,584 | 2.89 | % | $ | 330,228 | $ | 960 | 0.29 | % | |||||
Money market accounts | 250,152 | 4,368 | 1.75 | % | 265,116 | 806 | 0.30 | % | |||||||||
Savings accounts | 113,678 | 1,178 | 1.04 | % | 110,145 | 565 | 0.51 | % | |||||||||
Time deposits | 703,591 | 26,946 | 3.83 | % | 185,347 | 2,198 | 1.19 | % | |||||||||
Total interest-bearing deposits | 1,606,443 | 48,076 | 2.99 | % | 890,836 | 4,529 | 0.51 | % | |||||||||
234,623 | 10,225 | 4.36 | % | 15,000 | 493 | 3.29 | % | ||||||||||
Capital lease obligations | 15,859 | 74 | 0.47 | % | 5,228 | 90 | 1.72 | % | |||||||||
Total interest-bearing liabilities | 1,856,925 | 58,375 | 3.14 | % | 911,064 | 5,112 | 0.56 | % | |||||||||
Non-interest bearing liabilities: | |||||||||||||||||
Demand deposits and escrow accounts | 208,287 | 403,760 | |||||||||||||||
Other liabilities | 13,337 | 14,167 | |||||||||||||||
Total liabilities | 2,078,549 | 1,328,991 | |||||||||||||||
Shareholders' equity | 268,058 | 242,368 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,346,607 | $ | 1,571,359 | |||||||||||||
Net interest income | $ | 118,796 | $ | 83,424 | |||||||||||||
Interest rate spread | 4.68 | % | 5.27 | % | |||||||||||||
Net interest margin (4) | 5.24 | % | 5.49 | % | |||||||||||||
Cost of funds (5) | 2.83 | % | 0.39 | % | |||||||||||||
(1) Interest income and yield are stated on a fully tax-equivalent basis using the statutory tax rate. | |||||||||||||||||
(2) Nonaccrual loans are included in the computation of average, but unpaid interest has not been included for purposes of determining interest income. | |||||||||||||||||
(3) Short-term investments include FHLB overnight deposits and other interest-bearing deposits. | |||||||||||||||||
(4) Net interest margin is calculated as net interest income divided by total interest-earning assets. | |||||||||||||||||
(5) Cost of funds is calculated as total interest expense divided by total interest-bearing liabilities plus demand deposits and escrow accounts. |
SELECTED FINANCIAL HIGHLIGHTS AND OTHER DATA | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(Dollars in thousands, except share and per share data) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
Net interest income | $ | 34,155 | $ | 32,239 | $ | 28,752 | $ | 23,649 | $ | 23,619 | |||||||||
Provision (credit) for loan losses | 453 | 676 | 325 | 850 | (879 | ) | |||||||||||||
Noninterest income | 1,112 | 1,188 | 1,301 | 1,659 | 4,144 | ||||||||||||||
Noninterest expense | 16,361 | 13,836 | 13,704 | 12,634 | 12,856 | ||||||||||||||
Net income | 12,086 | 12,517 | 11,298 | 8,287 | 10,296 | ||||||||||||||
Weighted-average common shares outstanding: | |||||||||||||||||||
Basic | 7,459,074 | 7,352,447 | 7,256,281 | 7,312,291 | 7,506,465 | ||||||||||||||
Diluted | 7,523,508 | 7,413,812 | 7,323,402 | 7,394,089 | 7,617,933 | ||||||||||||||
Earnings per common share: | |||||||||||||||||||
Basic | $ | 1.62 | $ | 1.70 | $ | 1.56 | $ | 1.13 | $ | 1.37 | |||||||||
Diluted | 1.61 | 1.69 | 1.54 | 1.12 | 1.35 | ||||||||||||||
Dividends declared per common share | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | |||||||||
Return on average assets | 1.70 | % | 1.80 | % | 2.13 | % | 2.03 | % | 2.68 | % | |||||||||
Return on average equity | 16.67 | % | 18.53 | % | 17.48 | % | 13.07 | % | 16.55 | % | |||||||||
Net interest rate spread (1) | 4.31 | % | 4.19 | % | 5.42 | % | 5.61 | % | 6.14 | % | |||||||||
Net interest margin (2) | 4.91 | % | 4.75 | % | 5.82 | % | 5.96 | % | 6.34 | % | |||||||||
Efficiency ratio (non-GAAP) (3) | 46.39 | % | 41.39 | % | 45.60 | % | 49.92 | % | 46.31 | % | |||||||||
Noninterest expense to average total assets | 2.30 | % | 1.99 | % | 2.58 | % | 3.09 | % | 3.34 | % | |||||||||
Average interest-earning assets to average interest-bearing liabilities | 117.73 | % | 118.20 | % | 119.28 | % | 142.88 | % | 156.64 | % | |||||||||
As of: | |||||||||||||||||||
Nonperforming loans: | |||||||||||||||||||
Originated portfolio: | |||||||||||||||||||
Residential real estate | $ | 280 | $ | 379 | $ | 448 | $ | 520 | $ | 550 | |||||||||
Commercial real estate | 3,548 | 3,355 | 3,297 | 3,528 | 5,031 | ||||||||||||||
Commercial and industrial | 520 | 561 | 631 | 452 | 202 | ||||||||||||||
Consumer | - | - | 8 | 8 | 11 | ||||||||||||||
Total originated portfolio | 4,348 | 4,295 | 4,384 | 4,508 | 5,794 | ||||||||||||||
Total purchased portfolio | 11,335 | 10,227 | 8,515 | 9,089 | 7,152 | ||||||||||||||
Total nonperforming loans | 15,683 | 14,522 | 12,899 | 13,597 | 12,946 | ||||||||||||||
Real estate owned and other repossessed collateral, net | - | - | - | 90 | - | ||||||||||||||
Total nonperforming assets | $ | 15,683 | $ | 14,522 | $ | 12,899 | $ | 13,687 | $ | 12,946 | |||||||||
Past due loans to total loans | 0.52 | % | 0.70 | % | 0.74 | % | 0.97 | % | 0.53 | % | |||||||||
Nonperforming loans to total loans | 0.62 | % | 0.58 | % | 0.51 | % | 0.93 | % | 0.99 | % | |||||||||
Nonperforming assets to total assets | 0.55 | % | 0.51 | % | 0.46 | % | 0.79 | % | 0.82 | % | |||||||||
Allowance for loan losses to total loans | 0.29 | % | 0.28 | % | 0.26 | % | 0.40 | % | 0.39 | % | |||||||||
Allowance for loan losses to nonperforming loans | 46.57 | % | 48.84 | % | 49.70 | % | 43.38 | % | 38.34 | % | |||||||||
Net charge-offs (recoveries) | $ | 240 | $ | (5 | ) | $ | (190 | ) | $ | (20 | ) | $ | (92 | ) | |||||
Commercial real estate loans to total capital (4) | 595.38 | % | 614.90 | % | 661.48 | % | 328.35 | % | 294.20 | % | |||||||||
Net loans to deposits (5) | 129.73 | % | 117.56 | % | 113.74 | % | 109.78 | % | 100.94 | % | |||||||||
Purchased loans to total loans (6) | 58.73 | % | 58.20 | % | 59.23 | % | 32.62 | % | 36.61 | % | |||||||||
Equity to total assets | 10.34 | % | 9.90 | % | 9.38 | % | 14.47 | % | 15.69 | % | |||||||||
Common equity tier 1 capital ratio | 12.03 | % | 11.59 | % | 10.84 | % | 17.36 | % | 19.08 | % | |||||||||
Total capital ratio | 12.33 | % | 11.89 | % | 11.11 | % | 17.77 | % | 19.47 | % | |||||||||
Tier 1 leverage capital ratio | 10.37 | % | 10.06 | % | 12.53 | % | 15.59 | % | 16.13 | % | |||||||||
Total shareholders’ equity | $ | 296,663 | $ | 283,869 | $ | 263,427 | $ | 252,163 | $ | 248,321 | |||||||||
Less: Preferred stock | - | - | - | - | - | ||||||||||||||
Common shareholders’ equity | 296,663 | 283,869 | 263,427 | 252,163 | 248,321 | ||||||||||||||
Less: Intangible assets (7) | - | - | - | (1,141 | ) | (1,285 | ) | ||||||||||||
Tangible common shareholders' equity (non-GAAP) | $ | 296,663 | $ | 283,869 | $ | 263,427 | $ | 251,022 | $ | 247,036 | |||||||||
Common shares outstanding | 7,668,650 | 7,668,650 | 7,511,044 | 7,477,158 | 7,442,103 | ||||||||||||||
Book value per common share | $ | 38.69 | $ | 37.02 | $ | 35.07 | $ | 33.72 | $ | 33.37 | |||||||||
Tangible book value per share (non-GAAP) (8) | 38.69 | 37.02 | 35.07 | 33.57 | 33.19 | ||||||||||||||
(1) The net interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted-average cost of interest-bearing liabilities for the period. | |||||||||||||||||||
(2) The net interest margin represents net interest income as a percent of average interest-earning assets for the period. | |||||||||||||||||||
(3) The efficiency ratio represents noninterest expense divided by the sum of net interest income (before the loan loss provision) plus noninterest income. | |||||||||||||||||||
(4) For purposes of calculating this ratio, commercial real estate includes all non-owner occupied commercial real estate loans defined as such by regulatory guidance, including all land development and construction loans. | |||||||||||||||||||
(5) During the quarter ended | |||||||||||||||||||
(6) Beginning with the quarter ended | |||||||||||||||||||
(7) Includes the loan servicing rights asset. Beginning with the quarter ended | |||||||||||||||||||
(8) Tangible book value per share represents total shareholders’ equity less the sum of preferred stock and intangible assets divided by common shares outstanding. | |||||||||||||||||||
For More Information:
207.786.3245 ext. 3220
www.northeastbank.com
Source:
2023 GlobeNewswire, Inc., source