The board of directors of
“We’re pleased to report another solid quarter, fueling record earnings for the full year of 2023,” said
“Loan growth was strong, increasing 7% year-over-year and 2% over the linked quarter, and we continue to be optimistic about loan demand in our markets,” said Portmann. “We recently announced a new commercial banking center in
Fourth Quarter 2023 Financial Highlights:
- Return on average assets (“ROAA”) was 1.02%, compared to 1.21% for the third quarter 2023, and 1.41% for the fourth quarter 2022.
- Return on average equity (“ROAE”) was 10.88%, compared to 13.16% from the preceding quarter, and 18.70% from the fourth quarter a year earlier.
- Net interest income was
$11.7 million , compared to$12.3 million for the third quarter of 2023, and$12.9 million for the fourth quarter 2022. - Net interest margin (“NIM”) contracted 3 basis points to 4.34%, compared to 4.37% from the preceding quarter, and expanded 22 basis points from 4.12% for the fourth quarter a year ago.
- Provision for credit losses was
$111,000 compared to$244,000 for the preceding quarter and no provision in the fourth quarter a year ago. - Gross loans balances increased
$13.4 million , or 2%, to$685.3 million atDecember 31, 2023 , compared to$672.0 from the preceding quarter end and increased 7%, or$44.6 million , compared to$640.7 million atDecember 31, 2022 . - Total deposits declined
$42.0 million to$1.01 billion , compared to$1.05 billion from the third quarter 2023, with core deposits representing 90% of total deposits atDecember 31, 2023 . Non-interest bearing deposits represented 41% of total deposits atDecember 31, 2023 . - Asset quality remains solid with nonperforming assets to total assets at 0.06%, compared to nonperforming assets to total assets at 0.10% for the preceding quarter, and 0.07% at
December 31, 2022 . - At
December 31, 2023 ,Pacific Financial continued to exceed regulatory well-capitalized requirements with a leverage ratio of 11.3% and a total risk-based capital ratio of 17.7%.
Income Statement Review
Net interest income declined 5% to
Net interest margin (NIM) contracted 3 basis points to 4.34% for the fourth quarter of 2023, compared to 4.37% for the third quarter of 2023, primarily due to a higher cost of funds. The NIM expanded 22 basis points in the current quarter compared to 4.12% for the fourth quarter of 2022. Higher market interest rates during most of the year combined with growth of investments and loan balances positively impacted NIM for the current quarter and for the year ended
The increase in average yields on interest-earning assets during the current quarter and for the year 2023 reflects the benefit of variable rate interest-earning assets repricing higher, as well as new loans being originated at higher interest rates. For the current quarter, loan yields increased 9 basis points to 5.80% compared to the preceding quarter of 5.71%, and increased 62 basis points from 5.18% from the fourth quarter 2022. In addition, the yield on interest-bearing bank deposits was 5.42% for the current quarter, compared to 5.35% for the preceding quarter, and 3.72% for the fourth quarter 2022. The Bank’s total cost of funds increased to 0.83% for the current quarter, compared to 0.72% for the preceding quarter, and 0.14% for the fourth quarter 2022. Our deposit offering rates have remained relatively unchanged since end of
Noninterest income decreased to
Noninterest expense increased 4% to
Noninterest expense for the year ended
Federal and
Balance Sheet Review
Total Assets declined by 3% to
Liquidity metrics continued to remain strong with:
- Cash and cash equivalents of
$95.8 million , or 41% of uninsured and uncollateralized deposits, atDecember 31, 2023 compared to$148 million atSeptember 30, 2023 . - Coverage of short-term funds available to uninsured and uncollateralized deposits was 243% at
December 31, 2023 compared to 254% atSeptember 30, 2023 . - Uninsured or uncollateralized deposits were 23% of total deposits at
December 31, 2023 and 22% atSeptember 30, 2023 .
Gross loans balances increased
The Company manages new loan origination volume using concentration limits that establish maximum exposure levels by certain industry segments, loan product types, geography and single borrower limits. The loan pipeline continues to be supported by sustained business development activity by its commercial lending teams. In addition, the loan portfolio continues to be well-diversified and is originated predominantly within the Company’s
Credit Quality metrics remain sound with nonperforming assets declining to
Adoption of New Accounting Standard In
Allowance for Credit Losses (“ACL”) for loans was
Net recoveries for the current quarter totaled
Total Deposits were
As some customers continued to seek higher yield, certificate of deposit balances increased
Shareholder’s Equity increased 8% to
Regulatory capital ratios of both the Company and the Bank continue to exceed the well-capitalized regulatory thresholds, with the company’s leverage ratio at 11.3% and total risk-based capital ratio at 17.7% as of
Financial Performance Overview | ||||||||||||||
(Unaudited) | ||||||||||||||
For the Three Months Ended | ||||||||||||||
Change | Change | |||||||||||||
Performance Ratios | ||||||||||||||
Return on average assets, annualized | 1.02 | % | 1.21 | % | (0.19 | ) | 1.41 | % | (0.39 | ) | ||||
Return on average equity, annualized | 10.88 | % | 13.16 | % | (2.28 | ) | 18.70 | % | (7.82 | ) | ||||
Efficiency ratio (1) | 72.22 | % | 65.78 | % | 6.44 | 59.67 | % | 12.55 | ||||||
(1) Non-interest expense divided by net interest income plus noninterest income. | ||||||||||||||
For the Twelve Months Ended, | ||||||||||||||
Change | ||||||||||||||
Performance Ratios | ||||||||||||||
Return on average assets, annualized | 1.22 | % | 0.82 | % | 0.40 | |||||||||
Return on average equity, annualized | 13.48 | % | 10.24 | % | 3.24 | |||||||||
Efficiency ratio (1) | 66.56 | % | 72.60 | % | (6.04 | ) | ||||||||
(1) Non-interest expense divided by net interest income plus noninterest income. | ||||||||||||||
Balance Sheet Overview | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
2023 | 2023 | $ Change | % Change | 2022 | $ Change | % Change | ||||||||||||||||
Assets: | (Dollars in thousands, except per share data) | |||||||||||||||||||||
Cash on hand and in banks | $ | 16,716 | $ | 12,052 | $ | 4,664 | 39 | % | $ | 18,673 | $ | (1,957 | ) | -10 | % | |||||||
Interest bearing deposits | 91,355 | 146,886 | (55,531 | ) | -38 | % | 299,813 | (208,458 | ) | -70 | % | |||||||||||
Investment securities | 293,579 | 289,152 | 4,427 | 2 | % | 286,297 | 7,282 | 3 | % | |||||||||||||
Loans held-for-sale | 1,103 | 637 | 466 | 73 | % | - | 1,103 | 100 | % | |||||||||||||
Loans, net of deferred fees | 684,554 | 671,134 | 13,420 | 2 | % | 639,958 | 44,596 | 7 | % | |||||||||||||
Allowance for loan losses | (8,530 | ) | (8,347 | ) | (183 | ) | 2 | % | (8,236 | ) | (294 | ) | 4 | % | ||||||||
Net loans | 676,024 | 662,787 | 13,237 | 2 | % | 631,722 | 44,302 | 7 | % | |||||||||||||
1,783 | 2,567 | (784 | ) | -31 | % | 2,583 | (800 | ) | -31 | % | ||||||||||||
Other assets | 68,339 | 67,894 | 445 | 1 | % | 67,115 | 1,224 | 2 | % | |||||||||||||
Total assets | $ | 1,148,899 | $ | 1,181,975 | $ | (33,076 | ) | -3 | % | $ | 1,306,203 | $ | (157,304 | ) | -12 | % | ||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||||||
Total deposits | $ | 1,009,292 | $ | 1,051,256 | $ | (41,964 | ) | -4 | % | $ | 1,180,362 | $ | (171,070 | ) | -14 | % | ||||||
Borrowings | 13,403 | 13,403 | - | 0 | % | 13,403 | - | 0 | % | |||||||||||||
Accrued interest payable and other liabilities | 11,513 | 10,715 | 798 | 7 | % | 9,276 | 2,237 | 24 | % | |||||||||||||
Shareholders' equity | 114,691 | 106,601 | 8,090 | 8 | % | 103,162 | 11,529 | 11 | % | |||||||||||||
Total liabilities and shareholders' equity | $ | 1,148,899 | $ | 1,181,975 | $ | (33,076 | ) | -3 | % | $ | 1,306,203 | $ | (157,304 | ) | -12 | % | ||||||
Common Shares Outstanding | 10,388,724 | 10,427,224 | (38,500 | ) | 0 | % | 10,414,276 | (25,552 | ) | 0 | % | |||||||||||
Book value per common share (1) | $ | 11.04 | $ | 10.22 | $ | 0.82 | 8 | % | $ | 9.91 | $ | 1.13 | 11 | % | ||||||||
Tangible book value per common share (2) | $ | 9.75 | $ | 8.93 | $ | 0.82 | 9 | % | $ | 8.62 | $ | 1.13 | 13 | % | ||||||||
(1) Book value per common share is calculated as the total common shareholders' equity divided by the period ending number of common stock shares outstanding. | ||||||||||||||||||||||
(2) Tangible book value per common share is calculated as the total common shareholders' equity less total intangible assets and liabilities, divided by the period ending number of common stock shares outstanding. | ||||||||||||||||||||||
Income Statement Overview | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
For the Three Months Ended, | ||||||||||||||||||||||
2023 | 2023 | $ Change | % Change | 2022 | $ Change | % Change | ||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||||
Interest and dividend income | $ | 13,813 | $ | 14,242 | $ | (429 | ) | -3 | % | $ | 13,352 | $ | 461 | 3 | % | |||||||
Interest expense | 2,161 | 1,962 | 199 | 10 | % | 417 | 1,744 | 418 | % | |||||||||||||
Net interest income | 11,652 | 12,280 | (628 | ) | -5 | % | 12,935 | (1,283 | ) | -10 | % | |||||||||||
Provision for credit losses | 111 | 244 | (133 | ) | -55 | % | - | 111 | 100 | % | ||||||||||||
Noninterest income | 1,528 | 1,610 | (82 | ) | -5 | % | 1,559 | (31 | ) | -2 | % | |||||||||||
Noninterest expense | 9,519 | 9,142 | 377 | 4 | % | 8,648 | 871 | 10 | % | |||||||||||||
Income before income taxes | 3,550 | 4,504 | (954 | ) | -21 | % | 5,846 | (2,296 | ) | -39 | % | |||||||||||
Income tax expense | 608 | 859 | (251 | ) | -29 | % | 1,129 | (521 | ) | -46 | % | |||||||||||
Net Income | $ | 2,942 | $ | 3,645 | $ | (703 | ) | -19 | % | $ | 4,717 | $ | (1,775 | ) | -38 | % | ||||||
Average common shares outstanding - basic | 10,411,812 | 10,427,224 | (15,412 | ) | 0 | % | 10,407,967 | 3,845 | 0 | % | ||||||||||||
Average common shares outstanding - diluted | 10,420,337 | 10,433,686 | (13,349 | ) | 0 | % | 10,426,346 | (6,009 | ) | 0 | % | |||||||||||
Income per common share | ||||||||||||||||||||||
Basic | $ | 0.28 | $ | 0.35 | $ | (0.07 | ) | -20 | % | $ | 0.45 | $ | (0.17 | ) | -38 | % | ||||||
Diluted | $ | 0.28 | $ | 0.35 | $ | (0.07 | ) | -20 | % | $ | 0.45 | $ | (0.17 | ) | -38 | % | ||||||
Effective tax rate | 17.1 | % | 19.1 | % | -2.0 | % | 19.3 | % | -2.2 | % | ||||||||||||
For the Twelve Months Ended, | ||||||||||||||||||||||
2023 | 2022 | $ Change | % Change | |||||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||||
Interest and dividend income | $ | 55,480 | $ | 42,152 | $ | 13,328 | 32 | % | ||||||||||||||
Interest expense | 6,280 | 1,206 | 5,074 | 421 | % | |||||||||||||||||
Net interest income | 49,200 | 40,946 | 8,254 | 20 | % | |||||||||||||||||
Provision for credit losses | 520 | - | 520 | 100 | % | |||||||||||||||||
Noninterest income | 6,172 | 7,227 | (1,055 | ) | -15 | % | ||||||||||||||||
Noninterest expense | 36,856 | 34,974 | 1,882 | 5 | % | |||||||||||||||||
Income before income taxes | 17,996 | 13,199 | 4,797 | 36 | % | |||||||||||||||||
Income tax expense | 3,391 | 2,311 | 1,080 | 47 | % | |||||||||||||||||
Net Income | $ | 14,605 | $ | 10,888 | $ | 3,717 | 34 | % | ||||||||||||||
Average common shares outstanding - basic | 10,420,431 | 10,396,268 | 24,163 | 0 | % | |||||||||||||||||
Average common shares outstanding - diluted | 10,429,187 | 10,423,301 | 5,886 | 0 | % | |||||||||||||||||
Income per common share | ||||||||||||||||||||||
Basic | $ | 1.40 | $ | 1.05 | $ | 0.35 | 33 | % | ||||||||||||||
Diluted | $ | 1.40 | $ | 1.04 | $ | 0.36 | 35 | % | ||||||||||||||
Effective tax rate | 18.8 | % | 17.5 | % | 1.3 | % | ||||||||||||||||
Noninterest Income | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
For the Three Months Ended, | ||||||||||||||||||||||
2023 | 2023 | $ Change | % Change | 2022 | $ Change | % Change | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Service charges on deposits | $ | 478 | $ | 514 | $ | (36 | ) | -7 | % | $ | 404 | $ | 74 | 18 | % | |||||||
Gain on sale of loans, net | 95 | 170 | (75 | ) | -44 | % | 97 | (2 | ) | -2 | % | |||||||||||
Earnings on bank owned life insurance | 176 | 174 | 2 | 1 | % | 161 | 15 | 9 | % | |||||||||||||
Other noninterest income | ||||||||||||||||||||||
Fee income | 764 | 734 | 30 | 4 | % | 903 | (139 | ) | -15 | % | ||||||||||||
Other | 15 | 18 | (3 | ) | -17 | % | (6 | ) | 21 | -350 | % | |||||||||||
Total noninterest income | $ | 1,528 | $ | 1,610 | $ | (82 | ) | -5 | % | $ | 1,559 | $ | (31 | ) | -2 | % | ||||||
For the Twelve Months Ended, | ||||||||||||||||||||||
2023 | 2022 | $ Change | % Change | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Service charges on deposits | $ | 1,975 | $ | 1,621 | $ | 354 | 22 | % | ||||||||||||||
Gain on sale of loans, net | 635 | 1,406 | (771 | ) | -55 | % | ||||||||||||||||
Gain(loss) on sale of securities available for sale, net | (154 | ) | - | (154 | ) | -100 | % | |||||||||||||||
Earnings on bank owned life insurance | 685 | 682 | 3 | 0 | % | |||||||||||||||||
Other noninterest income | ||||||||||||||||||||||
Fee income | 2,963 | 3,518 | (555 | ) | -16 | % | ||||||||||||||||
Other | 68 | - | 68 | 100 | % | |||||||||||||||||
Total noninterest income | $ | 6,172 | $ | 7,227 | $ | (1,055 | ) | -15 | % | |||||||||||||
Noninterest Expense | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
For the Three Months Ended, | ||||||||||||||||||||||
2023 | 2023 | $ Change | % Change | 2022 | $ Change | % Change | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Salaries and employee benefits | $ | 5,787 | $ | 5,560 | $ | 227 | 4 | % | $ | 5,432 | $ | 355 | 7 | % | ||||||||
Occupancy | 679 | 501 | 178 | 36 | % | 509 | 170 | 33 | % | |||||||||||||
Equipment | 301 | 252 | 49 | 19 | % | 296 | 5 | 2 | % | |||||||||||||
Data processing | 971 | 925 | 46 | 5 | % | 881 | 90 | 10 | % | |||||||||||||
Professional services | 238 | 193 | 45 | 23 | % | 158 | 80 | 51 | % | |||||||||||||
State and local taxes | 187 | 446 | (259 | ) | -58 | % | 197 | (10 | ) | -5 | % | |||||||||||
144 | 140 | 4 | 3 | % | 107 | 37 | 35 | % | ||||||||||||||
Other noninterest expense: | ||||||||||||||||||||||
Director fees | 82 | 84 | (2 | ) | -2 | % | 68 | 14 | 21 | % | ||||||||||||
Communication | 73 | 67 | 6 | 9 | % | 61 | 12 | 20 | % | |||||||||||||
Advertising | 114 | 103 | 11 | 11 | % | (31 | ) | 145 | -468 | % | ||||||||||||
Professional liability insurance | 79 | 70 | 9 | 13 | % | 68 | 11 | 16 | % | |||||||||||||
Amortization | 43 | 43 | - | 0 | % | 48 | (5 | ) | -10 | % | ||||||||||||
Other | 821 | 758 | 63 | 8 | % | 854 | (33 | ) | -4 | % | ||||||||||||
Total noninterest expense | $ | 9,519 | $ | 9,142 | $ | 377 | 4 | % | $ | 8,648 | $ | 871 | 10 | % | ||||||||
For the Twelve Months Ended, | ||||||||||||||||||||||
2023 | 2022 | $ Change | % Change | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Salaries and employee benefits | $ | 22,793 | $ | 22,401 | $ | 392 | 2 | % | ||||||||||||||
Occupancy | 2,215 | 2,023 | 192 | 9 | % | |||||||||||||||||
Equipment | 1,109 | 1,184 | (75 | ) | -6 | % | ||||||||||||||||
Data processing | 3,770 | 3,506 | 264 | 8 | % | |||||||||||||||||
Professional services | 875 | 709 | 166 | 23 | % | |||||||||||||||||
State and local taxes | 1,018 | 693 | 325 | 47 | % | |||||||||||||||||
592 | 402 | 190 | 47 | % | ||||||||||||||||||
Other noninterest expense: | ||||||||||||||||||||||
Director fees | 312 | 279 | 33 | 12 | % | |||||||||||||||||
Communication | 261 | 256 | 5 | 2 | % | |||||||||||||||||
Advertising | 328 | 207 | 121 | 58 | % | |||||||||||||||||
Professional liability insurance | 285 | 257 | 28 | 11 | % | |||||||||||||||||
Amortization | 174 | 185 | (11 | ) | -6 | % | ||||||||||||||||
Other | 3,124 | 2,872 | 252 | 9 | % | |||||||||||||||||
Total noninterest expense | $ | 36,856 | $ | 34,974 | $ | 1,882 | 5 | % | ||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
2023 | % of Total | 2023 | % of Total | $ Change | % Change | 2022 | % of Total | $ Change | % Change | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | $ | 126,949 | 43 | % | $ | 126,376 | 44 | % | $ | 573 | 0 | % | $ | 103,330 | 36 | % | $ | 23,619 | 23 | % | ||||||||||||
Mortgage backed securities | 38,103 | 13 | % | 38,322 | 13 | % | (219 | ) | -1 | % | 32,802 | 11 | % | 5,301 | 16 | % | ||||||||||||||||
83,748 | 29 | % | 82,292 | 28 | % | 1,456 | 2 | % | 83,889 | 29 | % | (141 | ) | 0 | % | |||||||||||||||||
Municipal securities | 44,779 | 15 | % | 42,162 | 15 | % | 2,617 | 6 | % | 64,277 | 22 | % | (19,498 | ) | -30 | % | ||||||||||||||||
Corporate debt securities | - | 0 | % | - | 0 | % | - | 0 | % | 1,999 | 1 | % | (1,999 | ) | -100 | % | ||||||||||||||||
Total | $ | 293,579 | 100 | % | $ | 289,152 | 100 | % | $ | 4,427 | 2 | % | $ | 286,297 | 100 | % | $ | 7,282 | 3 | % | ||||||||||||
Held to maturity securities | $ | 55,454 | 19 | % | $ | 56,469 | 20 | % | $ | (1,015 | ) | -2 | % | $ | 59,513 | 21 | % | $ | (4,059 | ) | -7 | % | ||||||||||
Available for sale securities | $ | 238,125 | 81 | % | $ | 232,683 | 80 | % | $ | 5,442 | 2 | % | $ | 226,784 | 79 | % | $ | 11,341 | 5 | % | ||||||||||||
$ | 248,768 | 85 | % | $ | 246,956 | 85 | % | $ | 1,812 | 1 | % | $ | 219,982 | 77 | % | $ | 28,786 | 13 | % | |||||||||||||
$ | 43,687 | 15 | % | $ | 41,025 | 14 | % | $ | 2,662 | 6 | % | $ | 65,024 | 23 | % | $ | (21,337 | ) | -33 | % | ||||||||||||
Non-rated securities | $ | 1,124 | 1 | % | $ | 1,171 | 1 | % | $ | (47 | ) | -4 | % | $ | 1,291 | 0 | % | $ | (167 | ) | -13 | % | ||||||||||
AFS Unrealized Gain (Loss) | $ | (20,808 | ) | -7 | % | $ | (29,783 | ) | -10 | % | $ | 8,975 | 3 | % | $ | (24,927 | ) | -9 | % | $ | 4,119 | 2 | % | |||||||||
As shown below, the Bank has established credit lines with borrowing capacity from the
Liquidity | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
2023 | % of Deposits | 2023 | % of Deposits | $ Change | % Change | 2022 | % of Deposits | $ Change | % Change | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 95,781 | 9 | % | $ | 147,970 | 14 | % | $ | (52,189 | ) | -35 | % | $ | 302,178 | 26 | % | $ | (206,397 | ) | -68 | % | |||||||
140,049 | 14 | % | 123,842 | 12 | % | 16,207 | 13 | % | 133,892 | 11 | % | 6,157 | 5 | % | |||||||||||||||
Secured lines of Credit (FHLB, FRB) | 327,264 | 32 | % | 318,557 | 30 | % | 8,707 | 3 | % | 253,387 | 21 | % | 73,877 | 29 | % | ||||||||||||||
Total short-term funds available | $ | 563,094 | 56 | % | $ | 590,369 | 56 | % | $ | (27,275 | ) | -5 | % | $ | 689,457 | 58 | % | $ | (126,363 | ) | -18 | % | |||||||
Short-term funds available to uninsured/uncollateralized deposits | 243 | % | 254 | % | 222 | % | |||||||||||||||||||||||
Uninsured/uncollateralized deposits to total deposits | 23 | % | 22 | % | 26 | % | |||||||||||||||||||||||
Gross loans to deposits ratio | 67 | % | 63 | % | 54 | % | |||||||||||||||||||||||
Loans by Category | |||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||
2023 | % of Gross Loans | 2023 | % of Gross Loans | $ Change | % Change | 2022 | % of Gross Loans | $ Change | % Change | ||||||||||||||||||||||
Commercial: | (Dollars in thousands) | ||||||||||||||||||||||||||||||
Commercial and agricultural | $ | 75,322 | 11 | % | $ | 72,901 | 11 | % | $ | 2,421 | 3 | % | $ | 75,705 | 12 | % | $ | (383 | ) | -1 | % | ||||||||||
PPP | 122 | 0 | % | 331 | 0 | % | (209 | ) | -63 | % | 515 | 0 | % | (393 | ) | -76 | % | ||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||
Construction and development | 48,720 | 7 | % | 42,584 | 6 | % | 6,136 | 14 | % | 37,287 | 6 | % | 11,433 | 31 | % | ||||||||||||||||
Residential 1-4 family | 96,301 | 14 | % | 90,449 | 14 | % | 5,852 | 6 | % | 82,653 | 13 | % | 13,648 | 17 | % | ||||||||||||||||
Multi-family | 51,025 | 7 | % | 49,092 | 7 | % | 1,933 | 4 | % | 41,122 | 6 | % | 9,903 | 24 | % | ||||||||||||||||
Commercial real estate -- owner occupied | 164,443 | 24 | % | 164,057 | 25 | % | 386 | 0 | % | 154,380 | 24 | % | 10,063 | 7 | % | ||||||||||||||||
Commercial real estate -- non owner occupied | 155,280 | 23 | % | 154,993 | 23 | % | 287 | 0 | % | 153,707 | 24 | % | 1,573 | 1 | % | ||||||||||||||||
Farmland | 27,273 | 4 | % | 27,641 | 4 | % | (368 | ) | -1 | % | 26,935 | 4 | % | 338 | 1 | % | |||||||||||||||
Consumer | 66,863 | 10 | % | 69,921 | 10 | % | (3,058 | ) | -4 | % | 68,412 | 11 | % | (1,549 | ) | -2 | % | ||||||||||||||
Gross Loans | 685,349 | 100 | % | 671,969 | 100 | % | 13,380 | 2 | % | 640,716 | 100 | % | 44,633 | 7 | % | ||||||||||||||||
Less: allowance for loan losses | (8,530 | ) | (8,347 | ) | (183 | ) | (8,236 | ) | (294 | ) | |||||||||||||||||||||
Less: deferred fees | (795 | ) | (835 | ) | 40 | (758 | ) | (37 | ) | ||||||||||||||||||||||
Net loans | $ | 676,024 | $ | 662,787 | $ | 13,237 | $ | 631,722 | $ | 44,302 | |||||||||||||||||||||
Loan Concentration | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
2023 | % of Risk Based Capital | 2023 | % of Risk Based Capital | Change | 2022 | % of Risk Based Capital | Change | ||||||||||||||||||
Commercial: | (Dollars in thousands) | ||||||||||||||||||||||||
Commercial and agricultural | $ | 75,322 | 54 | % | $ | 72,901 | 53 | % | 1 | % | $ | 75,705 | 58 | % | -4 | % | |||||||||
PPP | 122 | 0 | % | 331 | 0 | % | 0 | % | 515 | 0 | % | 0 | % | ||||||||||||
Real estate: | |||||||||||||||||||||||||
Construction and development | 48,720 | 35 | % | 42,584 | 31 | % | 4 | % | 37,287 | 29 | % | 6 | % | ||||||||||||
Residential 1-4 family | 96,301 | 70 | % | 90,449 | 66 | % | 4 | % | 82,653 | 64 | % | 6 | % | ||||||||||||
Multi-family | 51,025 | 37 | % | 49,092 | 36 | % | 1 | % | 41,122 | 32 | % | 5 | % | ||||||||||||
Commercial real estate -- owner occupied | 164,443 | 119 | % | 164,057 | 119 | % | 0 | % | 154,380 | 119 | % | 0 | % | ||||||||||||
Commercial real estate -- non owner occupied | 155,280 | 112 | % | 154,993 | 113 | % | -1 | % | 153,707 | 119 | % | -7 | % | ||||||||||||
Farmland | 27,273 | 20 | % | 27,641 | 20 | % | 0 | % | 26,935 | 21 | % | -1 | % | ||||||||||||
Consumer | 66,863 | 48 | % | 69,921 | 51 | % | -3 | % | 68,412 | 53 | % | -5 | % | ||||||||||||
Gross Loans | $ | 685,349 | $ | 671,969 | $ | 640,716 | |||||||||||||||||||
Regulatory | $ | 252,493 | 182 | % | $ | 244,277 | 178 | % | 4 | % | $ | 229,592 | 177 | % | 5 | % | |||||||||
Total Risk Based Capital* | $ | 138,449 | $ | 137,473 | $ | 129,551 | |||||||||||||||||||
* | |||||||||||||||||||||||||
The following table presents the Commercial real estate – non owner occupied loan balances, including loans in the process of construction and development, by collateral type:
Non-Owner Occupied Commercial Real Estate Composition* | ||||||
(Unaudited) | ||||||
2023 | % of Total | |||||
Multifamily | $ | 59,557 | 27 | % | ||
Hospitality | 31,657 | 14 | % | |||
Retail | 29,470 | 13 | % | |||
Mixed Use | 26,329 | 12 | % | |||
Office | 23,626 | 11 | % | |||
Mini Storage | 21,625 | 10 | % | |||
Industrial | 11,410 | 5 | % | |||
Special Purpose | 7,102 | 3 | % | |||
Warehouse | 6,169 | 3 | % | |||
Other | 3,326 | 1 | % | |||
Total | $ | 220,271 | ||||
*Includes loans in the process of construction and development | ||||||
Deposits by Category | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
2023 | % of Total | 2023 | % of Total | $ Change | % Change | 2022 | % of Total | $ Change | % Change | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Interest-bearing demand | $ | 183,436 | 18 | % | $ | 208,091 | 20 | % | $ | (24,655 | ) | -12 | % | $ | 253,272 | 20 | % | $ | (69,836 | ) | -28 | % | |||||
Money market | 179,344 | 17 | % | 179,367 | 17 | % | (23 | ) | 0 | % | 195,814 | 17 | % | (16,470 | ) | -8 | % | ||||||||||
Savings | 136,408 | 14 | % | 138,981 | 13 | % | (2,573 | ) | -2 | % | 174,887 | 16 | % | (38,479 | ) | -22 | % | ||||||||||
Time deposits (CDs) | 100,832 | 10 | % | 92,720 | 9 | % | 8,112 | 9 | % | 48,754 | 4 | % | 52,078 | 107 | % | ||||||||||||
Total interest-bearing deposits | 600,020 | 59 | % | 619,159 | 59 | % | (19,139 | ) | -3 | % | 672,727 | 57 | % | (72,707 | ) | -11 | % | ||||||||||
Non-interest bearing demand | 409,272 | 41 | % | 432,097 | 41 | % | (22,825 | ) | -5 | % | 507,635 | 43 | % | (98,363 | ) | -19 | % | ||||||||||
Total deposits | $ | 1,009,292 | 100 | % | $ | 1,051,256 | 100 | % | $ | (41,964 | ) | -4 | % | $ | 1,180,362 | 100 | % | $ | (171,070 | ) | -14 | % | |||||
Insured Deposits | $ | 647,330 | 64 | % | $ | 666,308 | 63 | % | $ | (18,978 | ) | -3 | % | $ | 709,468 | 60 | % | $ | (62,138 | ) | -9 | % | |||||
Collaterialized Deposits | 129,895 | 13 | % | 152,960 | 15 | % | (23,065 | ) | -15 | % | 160,354 | 14 | % | (30,459 | ) | -19 | % | ||||||||||
Uninsured Deposits | 232,067 | 23 | % | 231,988 | 22 | % | 79 | 0 | % | 310,540 | 26 | % | (78,473 | ) | -25 | % | |||||||||||
Total Deposits | $ | 1,009,292 | 100 | % | $ | 1,051,256 | 100 | % | $ | (41,964 | ) | -4 | % | $ | 1,180,362 | 100 | % | $ | (171,070 | ) | -14 | % | |||||
Consumer Deposits | $ | 470,425 | 46 | % | $ | 466,877 | 44 | % | $ | 3,548 | 1 | % | $ | 519,948 | 44 | % | $ | (49,523 | ) | -10 | % | ||||||
Business Deposits | 398,977 | 40 | % | 429,443 | 41 | % | (30,466 | ) | -7 | % | 490,341 | 42 | % | (91,364 | ) | -19 | % | ||||||||||
Public Deposits | 139,890 | 14 | % | 154,936 | 15 | % | (15,046 | ) | -10 | % | 170,073 | 14 | % | (30,183 | ) | -18 | % | ||||||||||
Total Deposits | $ | 1,009,292 | 100 | % | $ | 1,051,256 | 100 | % | $ | (41,964 | ) | -4 | % | $ | 1,180,362 | 100 | % | $ | (171,070 | ) | -14 | % | |||||
The following table summarizes the capital measures of the Company and the Bank respectively, at the dates listed below.
Capital Measures | ||||||||||||||||
(unaudited) | ||||||||||||||||
2023 | 2023 | Change | 2022 | Change | Well Capitalized Under Prompt Correction Action Regulations | |||||||||||
Total risk-based capital ratio | 17.7 | % | 17.6 | % | 0.1 | 17.1 | % | 0.6 | N/A | |||||||
Tier 1 risk-based capital ratio | 16.5 | % | 16.5 | % | - | 16.0 | % | 0.5 | N/A | |||||||
Common equity tier 1 ratio | 14.9 | % | 14.8 | % | 0.1 | 14.3 | % | 0.6 | N/A | |||||||
Leverage ratio | 11.3 | % | 10.7 | % | 0.6 | 9.4 | % | 1.9 | N/A | |||||||
Tangible common equity ratio | 8.9 | % | 8.0 | % | 0.9 | 6.9 | % | 2.0 | N/A | |||||||
Total risk-based capital ratio | 17.6 | % | 17.6 | % | - | 17.0 | % | 0.6 | 10.5 | % | ||||||
Tier 1 risk-based capital ratio | 16.4 | % | 16.4 | % | - | 15.9 | % | 0.5 | 8.5 | % | ||||||
Common equity tier 1 ratio | 16.4 | % | 16.4 | % | - | 15.9 | % | 0.5 | 7.0 | % | ||||||
Leverage ratio | 11.2 | % | 10.6 | % | 0.6 | 9.1 | % | 2.1 | 7.5 | % | ||||||
The following tables set forth information regarding average balances of interest-earning assets and interest-bearing liabilities and the resultant yields or cost, and the net interest margin on a tax equivalent basis. Loans held for sale and non-accrual loans are included in total loans.
Net Interest Margin | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
(Annualized, tax-equivalent basis) | |||||||||||||||||||||
For the Three Months Ended, | |||||||||||||||||||||
2023 | 2023 | $ Change | % Change | 2022 | $ Change | % Change | |||||||||||||||
Average Balances | (Dollars in thousands) | ||||||||||||||||||||
Gross loans | $ | 675,622 | $ | 665,300 | $ | 10,322 | 2 | % | $ | 629,976 | $ | 45,646 | 7 | % | |||||||
Loans held for sale | $ | 709 | $ | 497 | $ | 212 | 43 | % | $ | 898 | $ | (189 | ) | -21 | % | ||||||
Investment securities | $ | 289,245 | $ | 284,041 | $ | 5,204 | 2 | % | $ | 270,416 | $ | 18,829 | 7 | % | |||||||
Federal funds sold & interest bearing deposits in banks | $ | 105,177 | $ | 172,119 | $ | (66,942 | ) | -39 | % | $ | 352,628 | $ | (247,451 | ) | -70 | % | |||||
Total interest-earning assets | $ | 1,070,753 | $ | 1,121,957 | $ | (51,204 | ) | -5 | % | $ | 1,253,918 | $ | (183,165 | ) | -15 | % | |||||
Non-interest bearing demand deposits | $ | 419,994 | $ | 441,782 | $ | (21,788 | ) | -5 | % | $ | 521,133 | $ | (101,139 | ) | -19 | % | |||||
Interest bearing deposits | $ | 593,464 | $ | 619,183 | $ | (25,719 | ) | -4 | % | $ | 684,377 | $ | (90,913 | ) | -13 | % | |||||
Total Deposits | $ | 1,013,458 | $ | 1,060,965 | $ | (47,507 | ) | -4 | % | $ | 1,205,510 | $ | (192,052 | ) | -16 | % | |||||
Borrowings | $ | 13,403 | $ | 13,403 | $ | - | 0 | % | $ | 13,403 | $ | - | 0 | % | |||||||
Total interest-bearing liabilities | $ | 606,867 | $ | 632,586 | $ | (25,719 | ) | -4 | % | $ | 697,780 | $ | (90,913 | ) | -13 | % | |||||
Total Equity | $ | 107,251 | $ | 109,872 | $ | (2,621 | ) | -2 | % | $ | 100,076 | $ | 7,175 | 7 | % | ||||||
For the Three Months Ended, | |||||||||||||||||||||
2023 | 2023 | Change | 2022 | Change | |||||||||||||||||
Yield on average gross loans (1) | 5.80% | 5.71% | 0.09 | 5.18 | % | 0.62 | |||||||||||||||
Yield on average investment securities (1) | 3.48% | 3.36% | 0.12 | 2.81 | % | 0.67 | |||||||||||||||
Yield on Fed funds sold & interest bearing deposits in banks | 5.42% | 5.35% | 0.07 | 3.72 | % | 1.70 | |||||||||||||||
Cost of average interest bearing deposits | 1.28% | 1.10% | 0.18 | 0.14 | % | 1.14 | |||||||||||||||
Cost of average borrowings | 7.31% | 7.28% | 0.03 | 5.42 | % | 1.89 | |||||||||||||||
Cost of average total deposits and borrowings | 0.83% | 0.72% | 0.11 | 0.14 | % | 0.69 | |||||||||||||||
Yield on average interest-earning assets | 5.14% | 5.06% | 0.08 | 4.25 | % | 0.89 | |||||||||||||||
Cost of average interest-bearing liabilities | 1.41% | 1.23% | 0.18 | 0.24 | % | 1.17 | |||||||||||||||
Net interest spread | 3.73% | 3.83% | (0.10 | ) | 4.01 | % | (0.28 | ) | |||||||||||||
Net interest margin (1) | 4.34% | 4.37% | (0.03 | ) | 4.12 | % | 0.22 | ||||||||||||||
(1) Tax-exempt income has been adjusted to a tax equivalent basis at a rate of 21%. | |||||||||||||||||||||
For the Twelve Months Ended, | |||||||||||||||||||||
2023 | 2022 | $ Change | % Change | ||||||||||||||||||
Average Balances | (Dollars in thousands) | ||||||||||||||||||||
Gross loans | $ | 659,165 | $ | 617,220 | $ | 41,945 | 7 | % | |||||||||||||
Loans held for sale | $ | 628 | $ | 2,135 | $ | (1,507 | ) | -71 | % | ||||||||||||
Investment securities | $ | 286,473 | $ | 261,843 | $ | 24,630 | 9 | % | |||||||||||||
Federal funds sold & interest bearing deposits in banks | $ | 180,781 | $ | 376,166 | $ | (195,385 | ) | -52 | % | ||||||||||||
Interest-earning assets | $ | 1,127,047 | $ | 1,257,364 | $ | (130,317 | ) | -10 | % | ||||||||||||
Non-interest bearing demand deposits | $ | 448,234 | $ | 508,102 | $ | (59,868 | ) | -12 | % | ||||||||||||
Interest bearing deposits | $ | 620,026 | $ | 693,719 | $ | (73,693 | ) | -11 | % | ||||||||||||
Total Deposits | $ | 1,068,260 | $ | 1,201,821 | $ | (133,561 | ) | -11 | % | ||||||||||||
Borrowings | $ | 13,401 | $ | 13,591 | $ | (190 | ) | -1 | % | ||||||||||||
Interest-bearing liabilities | $ | 633,427 | $ | 707,310 | $ | (73,883 | ) | -10 | % | ||||||||||||
Total Equity | $ | 108,355 | $ | 106,352 | $ | 2,003 | 2 | % | |||||||||||||
For the Twelve Months Ended, | |||||||||||||||||||||
2023 | 2022 | Change | |||||||||||||||||||
Net Interest Margin | |||||||||||||||||||||
Yield on average gross loans (1) | 5.63% | 4.87% | 0.76 | ||||||||||||||||||
Yield on average investment securities (1) | 3.31% | 2.22% | 1.09 | ||||||||||||||||||
Yield on Fed funds sold & interest bearing deposits in banks | 5.04% | 1.74% | 3.30 | ||||||||||||||||||
Cost of average interest bearing deposits | 0.86% | 0.11% | 0.75 | ||||||||||||||||||
Cost of average borrowings | 6.93% | 3.41% | 3.52 | ||||||||||||||||||
Cost of average total deposits and borrowings | 0.58% | 0.10% | 0.48 | ||||||||||||||||||
Yield on average interest-earning assets | 4.94% | 3.38% | 1.56 | ||||||||||||||||||
Cost of average interest-bearing liabilities | 0.99% | 0.17% | 0.82 | ||||||||||||||||||
Net interest spread | 3.95% | 3.21% | 0.74 | ||||||||||||||||||
Net interest margin (1) | 4.39% | 3.29% | 1.10 | ||||||||||||||||||
(1) Tax-exempt income has been adjusted to a tax equivalent basis at a rate of 21%. | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
2023 | 2023 | $ Change | % Change | 2022 | $ Change | % Change | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Rated substandard or worse, but not impaired, beginning of three month period | $ | 5,072 | $ | 5,186 | $ | (114 | ) | -2 | % | $ | 2,814 | $ | 2,258 | 80 | % | ||||||
Addition of previously classified pass graded loans | 383 | 107 | 276 | 258 | % | 272 | 111 | 41 | % | ||||||||||||
Upgrades to pass or other loans especially mentioned status | - | - | - | 0 | % | (85 | ) | 85 | -100 | % | |||||||||||
Moved to nonaccrual | - | - | - | 0 | % | - | - | 0 | % | ||||||||||||
Principal payments, net | (430 | ) | (221 | ) | (209 | ) | 95 | % | (117 | ) | (313 | ) | 268 | % | |||||||
Rated substandard or worse, but not impaired, end of three month period | $ | 5,025 | $ | 5,072 | $ | (47 | ) | -1 | % | $ | 2,884 | $ | 2,141 | 74 | % | ||||||
Impaired | 664 | 1,219 | (555 | ) | -46 | % | 2,452 | (1,788 | ) | -73 | % | ||||||||||
Total adversely classified loans¹ | $ | 5,689 | $ | 6,291 | $ | (602 | ) | -10 | % | $ | 5,336 | $ | 353 | 7 | % | ||||||
Other loans especially mentioned or watch, but not impaired | $ | 15,120 | $ | 13,148 | $ | 1,972 | 15 | % | $ | 26,408 | $ | (11,288 | ) | -43 | % | ||||||
Gross loans (excluding deferred loan fees) | $ | 685,349 | $ | 671,969 | $ | 13,380 | 2 | % | $ | 640,716 | $ | 44,633 | 7 | % | |||||||
Adversely classified loans to gross loans | 0.83 | % | 0.94 | % | 0.83 | % | |||||||||||||||
Allowance for loan losses | $ | 8,530 | $ | 8,347 | $ | 183 | 2 | % | $ | 8,236 | $ | 294 | 4 | % | |||||||
Allowance for loan losses as a percentage of adversely classified loans | 149.94 | % | 132.68 | % | 154.35 | % | |||||||||||||||
Allowance for loan losses to total impaired loans | 1284.64 | % | 684.74 | % | 335.89 | % | |||||||||||||||
Adversely classified loans to total assets | 0.50 | % | 0.53 | % | 0.41 | % | |||||||||||||||
Delinquent loans to gross loans, not in nonaccrual status 2 | 0.08 | % | 0.25 | % | 0.08 | % | |||||||||||||||
¹Adversely classified loans are defined as loans having a well-defined weakness or weaknesses related to the borrower's financial capacity or to pledged collateral that may jeopardize the repayment of the debt. They are characterized by the possibility that the Bank may sustain some loss if the deficiencies giving rise to the substandard classification are not corrected. Note that any loans internally rated worse than substandard are included in the impaired loan totals. | |||||||||||||||||||||
2 Delinquent loans are defined as loans past due 30-90 days and still accruing | |||||||||||||||||||||
Nonperforming Assets | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
2023 | 2023 | $ Change | % Change | 2022 | $ Change | % Change | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Total nonaccrual loans, beginning of three month period | $ | 1,219 | $ | 959 | $ | 260 | 27 | % | $ | 899 | $ | 320 | 36 | % | |||||||
Transfer to performing loans | (478 | ) | - | (478 | ) | -100 | % | - | (478 | ) | -100 | % | |||||||||
Addition of nonaccrual loans | - | 288 | (288 | ) | -100 | % | - | - | 0 | % | |||||||||||
Moved to other assets owned | - | - | - | 0 | % | - | - | 0 | % | ||||||||||||
Principal payments, net | (77 | ) | (28 | ) | (49 | ) | 175 | % | (30 | ) | (47 | ) | 157 | % | |||||||
Charge-offs, net | - | - | - | 0 | % | - | - | 0 | % | ||||||||||||
Total nonaccrual loans, end of three month period | $ | 664 | $ | 1,219 | $ | (555 | ) | -46 | % | $ | 869 | $ | (205 | ) | -24 | % | |||||
Other real estate owned and foreclosed assets | - | - | - | 0 | % | 30 | (30 | ) | -100 | % | |||||||||||
Total nonperforming assets | $ | 664 | $ | 1,219 | $ | (555 | ) | -46 | % | $ | 899 | $ | (235 | ) | -26 | % | |||||
Accruing loans past due 90 days or more | $ | - | $ | - | $ | - | 0 | % | $ | - | $ | - | 0 | % | |||||||
Percentage of nonperforming assets to total assets | 0.06 | % | 0.10 | % | 0.07 | % | |||||||||||||||
Nonperforming loans to total loans | 0.10 | % | 0.18 | % | 0.14 | % | |||||||||||||||
Allowance for Credit Losses | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
For the Three Months Ended, | |||||||||||||||||||||
2023 | 2023 | $ Change | % Change | 2022 | $ Change | % Change | |||||||||||||||
Loans: | (Dollars in thousands) | ||||||||||||||||||||
Gross loans outstanding at end of period | $ | 685,349 | $ | 671,969 | $ | 13,380 | 2 | % | $ | 640,716 | $ | 44,633 | 7 | % | |||||||
Average loans outstanding, gross | $ | 675,622 | $ | 665,300 | $ | 10,322 | 2 | % | $ | 629,976 | $ | 45,646 | 7 | % | |||||||
Allowance for credit losses, beginning of period | $ | 8,347 | $ | 8,223 | $ | 124 | 2 | % | $ | 8,249 | $ | 98 | 1 | % | |||||||
Impact of CECL Adoption (ASC 326) | - | - | - | 0 | % | - | - | 0 | % | ||||||||||||
Commercial | - | - | - | 0 | % | - | - | 0 | % | ||||||||||||
- | - | - | 0 | % | - | - | 0 | % | |||||||||||||
- | - | - | 0 | % | - | - | 0 | % | |||||||||||||
Consumer | (20 | ) | (126 | ) | 106 | -84 | % | (14 | ) | (6 | ) | 43 | % | ||||||||
Total charge-offs | (20 | ) | (126 | ) | 106 | -84 | % | (14 | ) | (6 | ) | 43 | % | ||||||||
Commercial | 40 | - | 40 | 100 | % | - | 40 | 100 | % | ||||||||||||
- | - | - | 0 | % | - | - | 0 | % | |||||||||||||
- | - | - | 0 | % | - | - | 0 | % | |||||||||||||
Consumer | 1 | 1 | - | 0 | % | 1 | - | 0 | % | ||||||||||||
Total recoveries | 41 | 1 | 40 | 4000 | % | 1 | 40 | 4000 | % | ||||||||||||
Net recoveries/(charge-offs) | 21 | (125 | ) | 146 | -117 | % | (13 | ) | 34 | -262 | % | ||||||||||
Provision (benefit) to income | 162 | 249 | (87 | ) | -35 | % | - | 162 | 100 | % | |||||||||||
Allowance for credit losses, end of period | $ | 8,530 | $ | 8,347 | $ | 183 | 2 | % | $ | 8,236 | $ | 294 | 4 | % | |||||||
Ratio of net loans charged-off to average | |||||||||||||||||||||
gross loans outstanding, annualized | -0.01 | % | 0.07 | % | -0.08 | % | 0.01 | % | -0.02 | % | |||||||||||
Ratio of allowance for credit losses to | |||||||||||||||||||||
gross loans outstanding | 1.24 | % | 1.24 | % | 0.00 | % | 1.29 | % | -0.05 | % | |||||||||||
Unfunded Loan Commitments: | |||||||||||||||||||||
Allowance for credit losses, beginning of period | $ | 749 | $ | 754 | $ | (5 | ) | -1 | % | $ | 203 | $ | 546 | 269 | % | ||||||
Provision (benefit) to income | (51 | ) | (5 | ) | (46 | ) | 920 | % | - | (51 | ) | -100 | |||||||||
Allowance for credit losses, end of period | $ | 698 | $ | 749 | $ | (51 | ) | -7 | % | $ | 203 | $ | 495 | 244 | % | ||||||
For the Twelve Months Ended, | |||||||||||||||||||||
$ Change | % Change | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Gross loans outstanding at end of period | $ | 685,349 | $ | 640,716 | $ | 44,633 | 7 | % | |||||||||||||
Average loans outstanding, gross | $ | 659,165 | $ | 617,220 | $ | 41,945 | 7 | % | |||||||||||||
Allowance for credit losses, beginning of period | $ | 8,236 | $ | 8,297 | $ | (61 | ) | -1 | % | ||||||||||||
Impact of CECL Adoption (ASC 326) | (157 | ) | - | ||||||||||||||||||
Commercial | (84 | ) | - | (84 | ) | -100 | % | ||||||||||||||
- | - | - | 0 | % | |||||||||||||||||
- | - | - | 0 | % | |||||||||||||||||
Consumer | (195 | ) | (90 | ) | (105 | ) | 117 | % | |||||||||||||
Total charge-offs | (279 | ) | (90 | ) | (189 | ) | 210 | % | |||||||||||||
Commercial | 67 | - | 67 | 100 | % | ||||||||||||||||
- | - | - | 0 | % | |||||||||||||||||
- | - | - | 0 | % | |||||||||||||||||
Consumer | 29 | 29 | - | 0 | % | ||||||||||||||||
Total recoveries | 96 | 29 | 67 | 231 | % | ||||||||||||||||
Net recoveries (charge-offs) | (183 | ) | (61 | ) | (122 | ) | 200 | % | |||||||||||||
Provision (benefit) to income | 634 | - | 634 | 100 | % | ||||||||||||||||
Allowance for credit losses, end of period | $ | 8,530 | $ | 8,236 | $ | 294 | 4 | % | |||||||||||||
Ratio of net loans charged-off to average | |||||||||||||||||||||
gross loans outstanding, annualized | 0.03 | % | 0.01 | % | 0.02 | % | |||||||||||||||
Ratio of allowance for credit losses to | |||||||||||||||||||||
gross loans outstanding | 1.24 | % | 1.29 | % | -0.05 | % | |||||||||||||||
Unfunded Loan Commitments: | |||||||||||||||||||||
Allowance for credit losses, beginning of period | $ | 203 | $ | 203 | $ | - | 0 | % | |||||||||||||
Impact of CECL Adoption (ASC 326) | 609 | - | 609 | 100 | % | ||||||||||||||||
Provision (benefit) to income | (114 | ) | - | (114 | ) | -100 | % | ||||||||||||||
Allowance for credit losses, end of period | $ | 698 | $ | 203 | $ | 495 | 244 | % | |||||||||||||
ABOUT
Cautions Concerning Forward-Looking Statements
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