The Company’s second quarter 2022 operating results reflected the following changes from the first quarter of 2022: (1) higher net interest income due to increased allocation to higher yielding loans with stable net interest margin; (2) higher salary and employee benefit expenses; and (3) lower noninterest income primarily due to lower gains on the sale of mortgage loans. Loans grew 5.7% during the quarter ending
“During 2022, we expect to see continued net interest income growth from both recent loan demand and incrementally improving net interest margin. Our lending teams have done an excellent job growing the loan portfolio with a combination of existing customers as well as new customers being brought into the Bank. Additionally, credit quality continues to improve, and operating expenses are expected to remain well-controlled. We believe we will be able to continue to deliver above average returns on tangible equity through the remainder of 2022,” stated
- Net interest income increased to
$9.7 million for the quarter endedJune 30, 2022 , compared to$9.6 million for the quarter endedMarch 31, 2022 , and less than the$10.2 million for the quarter endedJune 30, 2021 . PPP loan fee accretion of$41,000 ,$313,000 , and$1.0 million was recognized during the quarters endedJune 30, 2022 ,March 31, 2022 , andJune 30, 2021 , respectively. - Noninterest income declined slightly to
$1.9 million for the quarter endedJune 30, 2022 , from$2.0 million the previous quarter. The decline largely reflected a decline in the gain on sale of mortgage loans due to slower refinance origination activity in the rising interest rate environment. - Noninterest expense increased
$259,000 for the second quarter of 2022, to$7.5 million from$7.2 million the prior quarter. The increase primarily related to increased salary and benefit costs associated with higher health benefit claims. - Loans receivable increased
$50 million , or 5.7%, to$925 million atJune 30, 2022 from$876 million one quarter earlier. AtJune 30, 2022 , there were$1.0 million of PPP related loans yet outstanding. No loss losses provisions have yet been made during 2022. - Tangible book value declined to
$21.10 per share atJune 30, 2022 , due primarily to the recording of unrealized losses on securities available for sale driven by actions taken by theFederal Reserve to increase short-term interest rates and market expectations of future rate increases.
Balance Sheet and Asset Quality Review
Total assets increased to
Total loans receivable increased to
The allowance for loan losses decreased to 1.32% of gross loans at
Total deposits increased
FHLB advances increased to
Operations Review
Net interest income increased to
The increase in earning asset yields was due to higher yields on investment securities during the quarter ended
Total noninterest income decreased for the second quarter of 2022, to
Noninterest expense increased to
About
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations, estimates and projections about PSB’s business based, in part, on assumptions made by management and include, without limitation, statements with respect to the potential growth of PSB, its future profits, expected stock repurchase levels, future dividend rates, future interest rates, and the adequacy of its capital position. Forward-looking statements can be affected by known and unknown risks, uncertainties, and other factors, including, but not limited to, strength of the economy, the effects of government policies, including interest rate policies, risks associated with the execution of PSB’s vision and growth strategy, including with respect to current and future M&A activity, and risks associated with global economic instability relating to the COVID-19 pandemic and its effect on PSB and Peoples, and their customers, and other risks. The forward-looking statements in this press release speak only as of the date on which they are made and PSB does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.
Consolidated Balance Sheets | |||||||||||||||
(dollars in thousands, except per share data) | 2022 | 2022 | 2021 | 2021 | 2021 | ||||||||||
Assets | |||||||||||||||
Cash and due from banks | $ | 19,149 | $ | 18,322 | $ | 16,896 | $ | 20,813 | $ | 18,589 | |||||
Interest-bearing deposits | 3,545 | 5,158 | 6,579 | 1,044 | 906 | ||||||||||
Federal funds sold | 16,689 | 14,356 | 30,068 | 43,637 | 52,643 | ||||||||||
Cash and cash equivalents | 39,383 | 37,836 | 53,543 | 65,494 | 72,138 | ||||||||||
Securities available for sale (at fair value) | 190,478 | 289,704 | 308,744 | 300,192 | 260,062 | ||||||||||
Securities held to maturity (fair values of | |||||||||||||||
88,216 | - | - | - | - | |||||||||||
Equity securities | 1,781 | 1,720 | 1,701 | 1,661 | 1,623 | ||||||||||
Bank certificates of deposit (at cost) | 245 | 245 | 245 | 245 | 245 | ||||||||||
Loans held for sale | 270 | - | 3,061 | 214 | 1,756 | ||||||||||
Loans receivable, net | 925,260 | 875,588 | 876,337 | 874,524 | 863,254 | ||||||||||
Accrued interest receivable | 3,285 | 3,219 | 3,256 | 3,273 | 3,299 | ||||||||||
Foreclosed assets | 160 | 1,103 | 1,103 | 2,398 | 1,984 | ||||||||||
Premises and equipment, net | 12,981 | 12,906 | 12,695 | 12,725 | 13,241 | ||||||||||
Mortgage servicing rights, net | 1,711 | 1,770 | 1,714 | 1,702 | 1,696 | ||||||||||
2,646 | 2,646 | 2,646 | 2,646 | 2,646 | |||||||||||
Cash surrender value of bank-owned life insurance | 24,608 | 24,455 | 24,305 | 24,154 | 24,001 | ||||||||||
Core deposit intangible | 449 | 487 | 534 | 581 | 629 | ||||||||||
2,541 | 2,541 | 2,541 | 2,541 | 2,541 | |||||||||||
Other assets | 13,550 | 11,725 | 6,286 | 5,313 | 5,523 | ||||||||||
TOTAL ASSETS | $ | 1,307,564 | $ | 1,265,945 | $ | 1,298,711 | $ | 1,297,663 | $ | 1,254,638 | |||||
Liabilities | |||||||||||||||
Non-interest-bearing deposits | $ | 283,592 | $ | 272,611 | $ | 284,477 | $ | 291,440 | $ | 273,181 | |||||
Interest-bearing deposits | 829,867 | 816,794 | 820,763 | 791,601 | 758,445 | ||||||||||
Total deposits | 1,113,459 | 1,089,405 | 1,105,240 | 1,083,041 | 1,031,626 | ||||||||||
67,000 | 47,000 | 47,000 | 62,000 | 67,000 | |||||||||||
Other borrowings | 4,601 | 4,304 | 6,677 | 17,129 | 21,757 | ||||||||||
Senior subordinated notes | 2,500 | 2,500 | 2,500 | 2,500 | 2,500 | ||||||||||
Junior subordinated debentures | 12,768 | 12,742 | 12,717 | 12,691 | 12,666 | ||||||||||
Accrued expenses and other liabilities | 10,938 | 10,208 | 13,315 | 10,143 | 11,103 | ||||||||||
Total liabilities | 1,211,266 | 1,166,159 | 1,187,449 | 1,187,504 | 1,146,652 | ||||||||||
Stockholders' equity | |||||||||||||||
Preferred stock - no par value: | |||||||||||||||
Authorized - 30,000 shares; no shares issued or outstanding | - | - | - | - | - | ||||||||||
Common stock - no par value with a stated value of | |||||||||||||||
Authorized - 6,000,000 shares; Issued - 5,490,798 shares | |||||||||||||||
Outstanding - 4,423,037, 4,434,840, 4,440,329, 4,447,026 and | |||||||||||||||
4,454,922 shares, respectively | 1,830 | 1,830 | 1,830 | 1,830 | 1,830 | ||||||||||
Additional paid-in capital | 8,238 | 8,183 | 8,059 | 8,003 | 7,946 | ||||||||||
Retained earnings | 120,043 | 117,957 | 114,627 | 112,502 | 108,863 | ||||||||||
Accumulated other comprehensive income (loss), net of tax | (19,423 | ) | (14,097 | ) | 628 | 1,530 | 2,869 | ||||||||
1,035,876 shares, respectively | (14,390 | ) | (14,087 | ) | (13,882 | ) | (13,706 | ) | (13,522 | ) | |||||
Total stockholders' equity | 96,298 | 99,786 | 111,262 | 110,159 | 107,986 | ||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,307,564 | $ | 1,265,945 | $ | 1,298,711 | $ | 1,297,663 | $ | 1,254,638 | |||||
Consolidated Statements of Income | |||||||||||||||
Quarter Ended | |||||||||||||||
(dollars in thousands, | |||||||||||||||
except per share data - unaudited) | 2022 | 2022 | 2021 | 2021 | 2021 | ||||||||||
Interest and dividend income: | |||||||||||||||
Loans, including fees | $ | 9,295 | $ | 9,054 | $ | 8,918 | $ | 9,323 | $ | 9,972 | |||||
Securities: | |||||||||||||||
Taxable | 859 | 762 | 631 | 581 | 553 | ||||||||||
Tax-exempt | 537 | 533 | 505 | 500 | 505 | ||||||||||
Other interest and dividends | 52 | 42 | 31 | 45 | 40 | ||||||||||
Total interest and dividend income | 10,743 | 10,391 | 10,085 | 10,449 | 11,070 | ||||||||||
Interest expense: | |||||||||||||||
Deposits | 595 | 443 | 476 | 404 | 485 | ||||||||||
FHLB advances | 234 | 169 | 192 | 220 | 221 | ||||||||||
Other borrowings | 4 | 2 | 4 | 9 | 8 | ||||||||||
Senior subordinated notes | 28 | 28 | 29 | 28 | 28 | ||||||||||
Junior subordinated debentures | 179 | 166 | 165 | 165 | 165 | ||||||||||
Total interest expense | 1,040 | 808 | 866 | 826 | 907 | ||||||||||
Net interest income | 9,703 | 9,583 | 9,219 | 9,623 | 10,163 | ||||||||||
Provision for loan losses | - | - | - | - | - | ||||||||||
Net interest income after provision for loan losses | 9,703 | 9,583 | 9,219 | 9,623 | 10,163 | ||||||||||
Noninterest income: | |||||||||||||||
Service fees | 392 | 388 | 382 | 379 | 347 | ||||||||||
Gain on sale of mortgage loans | 182 | 277 | 451 | 494 | 663 | ||||||||||
Mortgage loan servicing, net | 117 | 176 | 114 | 111 | 9 | ||||||||||
Investment and insurance sales commissions | 404 | 456 | 500 | 426 | 465 | ||||||||||
Net gain on sale of securities | - | - | - | - | 113 | ||||||||||
Increase in cash surrender value of life insurance | 152 | 150 | 151 | 153 | 148 | ||||||||||
Other noninterest income | 686 | 531 | 646 | 563 | 554 | ||||||||||
Total noninterest income | 1,933 | 1,978 | 2,244 | 2,126 | 2,299 | ||||||||||
Noninterest expense: | |||||||||||||||
Salaries and employee benefits | 4,548 | 4,390 | 4,669 | 4,099 | 3,915 | ||||||||||
Occupancy and facilities | 629 | 665 | 596 | 614 | 647 | ||||||||||
Loss (gain) on foreclosed assets | - | (6 | ) | (347 | ) | 28 | 23 | ||||||||
Data processing and other office operations | 912 | 861 | 855 | 828 | 1,499 | ||||||||||
Advertising and promotion | 173 | 152 | 155 | 199 | 322 | ||||||||||
Core deposit intangible amortization | 38 | 47 | 47 | 47 | 31 | ||||||||||
Other noninterest expenses | 1,151 | 1,083 | 1,382 | 1,131 | 3,170 | ||||||||||
Total noninterest expense | 7,451 | 7,192 | 7,357 | 6,946 | 9,607 | ||||||||||
Income before provision for income taxes | 4,185 | 4,369 | 4,106 | 4,803 | 2,855 | ||||||||||
Provision for income taxes | 993 | 1,039 | 960 | 1,165 | 718 | ||||||||||
Net income | $ | 3,192 | $ | 3,330 | $ | 3,146 | $ | 3,638 | $ | 2,137 | |||||
Basic earnings per share | $ | 0.72 | $ | 0.75 | $ | 0.71 | $ | 0.82 | $ | 0.48 | |||||
Diluted earnings per share | $ | 0.72 | $ | 0.75 | $ | 0.71 | $ | 0.82 | $ | 0.48 | |||||
Consolidated Statements of Income | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
(dollars in thousands, | June | June | |||||||||||
except per share data - unaudited) | 2022 | 2021 | 2022 | 2021 | |||||||||
Interest and dividend income: | |||||||||||||
Loans, including fees | $ | 9,295 | $ | 9,972 | $ | 18,349 | $ | 19,414 | |||||
Securities: | |||||||||||||
Taxable | 859 | 553 | 1,621 | 1,060 | |||||||||
Tax-exempt | 537 | 505 | 1,070 | 1,007 | |||||||||
Other interest and dividends | 52 | 40 | 94 | 71 | |||||||||
Total interest and dividend income | 10,743 | 11,070 | 21,134 | 21,552 | |||||||||
Interest expense: | |||||||||||||
Deposits | 595 | 485 | 1,038 | 1,032 | |||||||||
FHLB advances | 234 | 221 | 403 | 436 | |||||||||
Other borrowings | 4 | 8 | 6 | 15 | |||||||||
Senior subordinated notes | 28 | 28 | 56 | 56 | |||||||||
Junior subordinated debentures | 179 | 165 | 345 | 254 | |||||||||
Total interest expense | 1,040 | 907 | 1,848 | 1,793 | |||||||||
Net interest income | 9,703 | 10,163 | 19,286 | 19,759 | |||||||||
Provision for loan losses | - | - | - | 1,000 | |||||||||
Net interest income after provision for loan losses | 9,703 | 10,163 | 19,286 | 18,759 | |||||||||
Noninterest income: | |||||||||||||
Service fees | 392 | 347 | 780 | 679 | |||||||||
Gain on sale of mortgage loans | 182 | 663 | 459 | 1,815 | |||||||||
Mortgage loan servicing, net | 117 | 9 | 293 | 88 | |||||||||
Investment and insurance sales commissions | 404 | 465 | 860 | 1,060 | |||||||||
Net gain on sale of securities | - | 113 | - | 134 | |||||||||
Increase in cash surrender value of life insurance | 152 | 148 | 302 | 256 | |||||||||
Other noninterest income | 686 | 554 | 1,217 | 1,016 | |||||||||
Total noninterest income | 1,933 | 2,299 | 3,911 | 5,048 | |||||||||
Noninterest expense: | |||||||||||||
Salaries and employee benefits | 4,548 | 3,915 | 8,938 | 7,375 | |||||||||
Occupancy and facilities | 629 | 647 | 1,294 | 1,216 | |||||||||
Loss (gain) on foreclosed assets | - | 23 | (6 | ) | 153 | ||||||||
Data processing and other office operations | 912 | 1,499 | 1,773 | 2,193 | |||||||||
Advertising and promotion | 173 | 322 | 325 | 401 | |||||||||
Core deposit intangible amortization | 38 | 31 | 85 | 34 | |||||||||
Other noninterest expenses | 1,151 | 3,170 | 2,234 | 4,435 | |||||||||
Total noninterest expense | 7,451 | 9,607 | 14,643 | 15,807 | |||||||||
Income before provision for income taxes | 4,185 | 2,855 | 8,554 | 8,000 | |||||||||
Provision for income taxes | 993 | 718 | 2,032 | 1,967 | |||||||||
Net income | $ | 3,192 | $ | 2,137 | $ | 6,522 | $ | 6,033 | |||||
Basic earnings per share | $ | 0.72 | $ | 0.48 | $ | 1.47 | $ | 1.35 | |||||
Diluted earnings per share | $ | 0.72 | $ | 0.48 | $ | 1.47 | $ | 1.35 | |||||
Quarterly Financial Summary | ||||||||||||||||
(dollars in thousands, except per share data) | Quarter ended | |||||||||||||||
Earnings and dividends: | 2022 | 2022 | 2021 | 2021 | 2021 | |||||||||||
Interest income | $ | 10,743 | $ | 10,391 | $ | 10,085 | $ | 10,449 | $ | 11,070 | ||||||
Interest expense | $ | 1,040 | $ | 808 | $ | 866 | $ | 826 | $ | 907 | ||||||
Net interest income | $ | 9,703 | $ | 9,583 | $ | 9,219 | $ | 9,623 | $ | 10,163 | ||||||
Provision for loan losses | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||
Other noninterest income | $ | 1,933 | $ | 1,978 | $ | 2,244 | $ | 2,126 | $ | 2,299 | ||||||
Other noninterest expense | $ | 7,451 | $ | 7,192 | $ | 7,357 | $ | 6,946 | $ | 9,607 | ||||||
Net income | $ | 3,192 | $ | 3,330 | $ | 3,146 | $ | 3,638 | $ | 2,137 | ||||||
Basic earnings per share (3) | $ | 0.72 | $ | 0.75 | $ | 0.71 | $ | 0.82 | $ | 0.48 | ||||||
Diluted earnings per share (3) | $ | 0.72 | $ | 0.75 | $ | 0.71 | $ | 0.82 | $ | 0.48 | ||||||
Dividends declared per share (3) | $ | 0.25 | $ | - | $ | 0.23 | $ | - | $ | 0.23 | ||||||
Tangible net book value per share (4) | $ | 21.10 | $ | 21.82 | $ | 24.36 | $ | 24.07 | $ | 23.53 | ||||||
Semi-annual dividend payout ratio | 16.96 | % | n/a | 15.05 | % | n/a | 17.04 | % | ||||||||
Average common shares outstanding | 4,428,939 | 4,433,375 | 4,445,465 | 4,450,755 | 4,454,922 | |||||||||||
Balance sheet - average balances: | ||||||||||||||||
Loans receivable, net of allowances for loss | $ | 904,710 | $ | 878,979 | $ | 870,151 | $ | 862,555 | $ | 891,886 | ||||||
Assets | $ | 1,290,906 | $ | 1,278,565 | $ | 1,295,780 | $ | 1,292,369 | $ | 1,251,738 | ||||||
Deposits | $ | 1,099,314 | $ | 1,084,814 | $ | 1,092,872 | $ | 1,064,553 | $ | 1,023,229 | ||||||
Stockholders' equity | $ | 98,261 | $ | 108,803 | $ | 112,089 | $ | 110,388 | $ | 105,932 | ||||||
Performance ratios: | ||||||||||||||||
Return on average assets (1) | 0.99 | % | 1.06 | % | 0.96 | % | 1.12 | % | 0.68 | % | ||||||
Return on average stockholders' equity (1) | 13.03 | % | 12.41 | % | 11.14 | % | 13.08 | % | 8.09 | % | ||||||
Average stockholders' equity less accumulated | ||||||||||||||||
other comprehensive income (loss) to | ||||||||||||||||
average assets | 8.80 | % | 8.99 | % | 8.57 | % | 8.39 | % | 8.27 | % | ||||||
Net loan charge-offs (recoveries) to average loans (1) | -0.02 | % | -0.05 | % | -0.10 | % | -0.08 | % | 0.00 | % | ||||||
Nonperforming loans to gross loans | 1.21 | % | 1.34 | % | 1.42 | % | 1.43 | % | 1.31 | % | ||||||
Nonperforming assets to total assets | 0.88 | % | 1.03 | % | 1.06 | % | 1.16 | % | 1.07 | % | ||||||
Allowance for loan losses to gross loans | 1.32 | % | 1.39 | % | 1.38 | % | 1.35 | % | 1.35 | % | ||||||
Nonperforming assets to tangible equity | ||||||||||||||||
plus the allowance for loan losses (4) | 11.04 | % | 12.10 | % | 11.58 | % | 12.87 | % | 11.71 | % | ||||||
Net interest rate margin (1)(2) | 3.23 | % | 3.24 | % | 3.01 | % | 3.15 | % | 3.48 | % | ||||||
Net interest rate spread (1)(2) | 3.11 | % | 3.14 | % | 2.89 | % | 3.04 | % | 3.37 | % | ||||||
Service fee revenue as a percent of | ||||||||||||||||
average demand deposits (1) | 0.57 | % | 0.58 | % | 0.52 | % | 0.53 | % | 0.51 | % | ||||||
Noninterest income as a percent | ||||||||||||||||
of gross revenue | 15.25 | % | 15.99 | % | 18.20 | % | 16.91 | % | 17.20 | % | ||||||
Efficiency ratio (2) | 63.20 | % | 61.40 | % | 63.37 | % | 58.40 | % | 76.20 | % | ||||||
Noninterest expenses to average assets (1) | 2.32 | % | 2.28 | % | 2.25 | % | 2.13 | % | 3.08 | % | ||||||
Tangible equity to tangible assets (4) | 7.15 | % | 7.66 | % | 8.35 | % | 8.27 | % | 8.38 | % | ||||||
Stock price information: | ||||||||||||||||
High | $ | 26.35 | $ | 26.45 | $ | 27.00 | $ | 26.50 | $ | 26.50 | ||||||
Low | $ | 22.82 | $ | 25.80 | $ | 24.60 | $ | 24.52 | $ | 25.00 | ||||||
Last trade value at quarter-end | $ | 23.50 | $ | 26.00 | $ | 26.05 | $ | 24.95 | $ | 26.25 | ||||||
(1) Annualized | ||||||||||||||||
(2) The yield on tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%. | ||||||||||||||||
(3) Due to rounding, cumulative quarterly per share performance may not equal annual per share totals. | ||||||||||||||||
(4) Tangible stockholders' equity excludes intangible assets. | ||||||||||||||||
Consolidated Statements of Comprehensive Income | |||||||||||||||||
Quarter Ended | |||||||||||||||||
(dollars in thousands - unaudited) | 2022 | 2022 | 2021 | 2021 | 2021 | ||||||||||||
Net income | $ | 3,192 | $ | 3,330 | $ | 3,146 | $ | 3,638 | $ | 2,137 | |||||||
Other comprehensive income, net of tax: | |||||||||||||||||
Unrealized gain (loss) on securities available | |||||||||||||||||
for sale | (5,573 | ) | (14,847 | ) | (973 | ) | (1,374 | ) | 1,224 | ||||||||
Reclassification adjustment for security | |||||||||||||||||
gain included in net income | - | - | - | - | (83 | ) | |||||||||||
Amortization of unrealized loss included in net | |||||||||||||||||
income on securities available for sale | |||||||||||||||||
transferred to securities held to maturity | 176 | - | - | - | - | ||||||||||||
Unrealized gain (loss) on interest rate swap | 43 | 85 | 31 | (5 | ) | (4 | ) | ||||||||||
Reclassification adjustment of interest rate | |||||||||||||||||
swap settlements included in earnings | 28 | 37 | 40 | 40 | 39 | ||||||||||||
Other comprehensive income (loss) | (5,326 | ) | (14,725 | ) | (902 | ) | (1,339 | ) | 1,176 | ||||||||
Comprehensive income (loss) | $ | (2,134 | ) | $ | (11,395 | ) | $ | 2,244 | $ | 2,299 | $ | 3,313 | |||||
Nonperforming Assets as of: | |||||||||||||||
(dollars in thousands) | 2022 | 2022 | 2021 | 2021 | 2021 | ||||||||||
Nonaccrual loans (excluding restructured loans) | $ | 6,036 | $ | 6,537 | $ | 6,425 | $ | 6,018 | $ | 5,208 | |||||
Nonaccrual restructured loans | 146 | 170 | 1,000 | 1,526 | 1,062 | ||||||||||
Restructured loans not on nonaccrual | 5,137 | 5,172 | 5,213 | 5,159 | 5,205 | ||||||||||
Accruing loans past due 90 days or more | - | - | - | - | - | ||||||||||
Total nonperforming loans | 11,319 | 11,879 | 12,638 | 12,703 | 11,475 | ||||||||||
Other real estate owned | 160 | 1,103 | 1,103 | 2,398 | 1,984 | ||||||||||
Total nonperforming assets | $ | 11,479 | $ | 12,982 | $ | 13,741 | $ | 15,101 | $ | 13,459 | |||||
Nonperforming loans as a % of gross loans receivable | 1.21 | % | 1.34 | % | 1.42 | % | 1.43 | % | 1.31 | % | |||||
Total nonperforming assets as a % of total assets | 0.88 | % | 1.03 | % | 1.06 | % | 1.16 | % | 1.07 | % | |||||
Allowance for loan losses as a % of nonperforming loans | 109.48 | % | 103.89 | % | 96.71 | % | 94.51 | % | 103.06 | % | |||||
Nonperforming Assets >= | |||||||
At | |||||||
(dollars in thousands) | |||||||
Gross | Specific | ||||||
Collateral Description | Asset Type | Principal | Reserves | ||||
Real estate - Hotel | Restructured | $ | 4,668 | $ | 1 | ||
Real estate - | Nonaccrual | 3,069 | 1,327 | ||||
Real estate - Independent | Nonaccrual | 870 | 120 | ||||
Total listed nonperforming assets | $ | 8,607 | $ | 1,448 | |||
Total bank wide nonperforming assets | $ | 11,479 | $ | 1,707 | |||
Listed assets as a % of total nonperforming assets | 75 | % | 85 | % | |||
Loan Composition by Purpose | |||||||||||||||
Quarter-ended (dollars in thousands) | 2022 | 2022 | 2021 | 2021 | 2021 | ||||||||||
Residential real estate: | |||||||||||||||
One to four family | $ | 169,437 | $ | 168,083 | $ | 168,584 | $ | 166,728 | $ | 169,456 | |||||
HELOC loans | 17,776 | 16,709 | 17,198 | 18,011 | 18,263 | ||||||||||
Residential construction & development | 22,462 | 21,590 | 23,093 | 25,162 | 24,385 | ||||||||||
Residential vacant land | 1,599 | 1,697 | 1,763 | 6,629 | 2,172 | ||||||||||
Total Residential real estate | 211,274 | 208,079 | 210,638 | 216,530 | 214,276 | ||||||||||
Commercial/Agricultural real estate: | |||||||||||||||
Owner occupied | |||||||||||||||
Commercial real estate | 205,976 | 208,271 | 202,416 | 203,509 | 202,767 | ||||||||||
SBA commercial real estate | 2,458 | 2,530 | 1,568 | 1,140 | 1,164 | ||||||||||
Agriculture real estate | 3,583 | 3,651 | 3,716 | 4,046 | 4,188 | ||||||||||
Construction and land development | 31,465 | 26,111 | 22,380 | 17,705 | 6,460 | ||||||||||
Commercial vacant land | 5,351 | 5,194 | 3,529 | 3,572 | 6,490 | ||||||||||
Total Owner occupied | 248,833 | 245,757 | 233,609 | 229,972 | 221,069 | ||||||||||
Non-owner occupied | |||||||||||||||
Commercial real estate | 227,400 | 212,407 | 211,688 | 212,868 | 196,011 | ||||||||||
One to four family residential rental | 61,749 | 56,305 | 52,437 | 49,542 | 47,097 | ||||||||||
SBA commercial real estate | - | - | 1,010 | 682 | 703 | ||||||||||
Agricultural real estate | - | - | - | - | - | ||||||||||
Construction and land development | 25,086 | 23,080 | 25,899 | 29,618 | 30,057 | ||||||||||
Commercial vacant land | 4,287 | 4,191 | 4,534 | 4,851 | 5,203 | ||||||||||
Total Non-owner occupied | 318,522 | 295,983 | 295,568 | 297,561 | 279,071 | ||||||||||
Commercial/Agricultural non-real estate: | |||||||||||||||
Municipal non-real estate | 6,352 | 6,403 | 11,858 | 7,623 | 7,014 | ||||||||||
Commercial line | 65,728 | 54,626 | 52,151 | 47,646 | 45,386 | ||||||||||
Other commercial non-real estate | 76,065 | 64,260 | 61,115 | 54,481 | 55,002 | ||||||||||
SBA commercial non-real estate | 3,926 | 6,068 | 17,527 | 25,933 | 47,245 | ||||||||||
Agricultural non-real estate | 1,409 | 1,340 | 1,130 | 1,325 | 1,656 | ||||||||||
Total Commercial/Agr. non-real estate | 153,480 | 132,697 | 143,781 | 137,008 | 156,303 | ||||||||||
Consumer non-real estate: | |||||||||||||||
Consumer installment | 4,305 | 4,201 | 4,054 | 4,369 | 4,399 | ||||||||||
Consumer line | 493 | 486 | 480 | 477 | 436 | ||||||||||
Other consumer | 123 | 118 | 117 | 125 | 130 | ||||||||||
Total Consumer non-real estate | 4,921 | 4,805 | 4,651 | 4,971 | 4,965 | ||||||||||
Gross loans | 937,030 | 887,321 | 888,247 | 886,042 | 875,684 | ||||||||||
Net deferred loan costs (fees) | 503 | 423 | 107 | (167 | ) | (738 | ) | ||||||||
Overdrafts | 119 | 185 | 205 | 654 | 134 | ||||||||||
Allowance for loan losses | (12,392 | ) | (12,341 | ) | (12,222 | ) | (12,005 | ) | (11,826 | ) | |||||
Total loans receivable | $ | 925,260 | $ | 875,588 | $ | 876,337 | $ | 874,524 | $ | 863,254 | |||||
Deposit Composition | ||||||||||||||||||||||||
(dollars in thousands) | 2022 | 2022 | 2021 | 2021 | 2021 | |||||||||||||||||||
$ | % | $ | % | $ | % | $ | % | $ | % | |||||||||||||||
Non-interest bearing demand | $ | 283,592 | 25.5 | % | $ | 272,611 | 25.0 | % | $ | 284,477 | 25.7 | % | $ | 291,440 | 26.9 | % | $ | 273,181 | 26.5 | % | ||||
Interest-bearing demand and savings | 376,150 | 33.8 | % | 382,829 | 35.1 | % | 413,522 | 37.4 | % | 388,725 | 35.9 | % | 366,563 | 35.4 | % | |||||||||
Money market deposits | 226,907 | 20.4 | % | 221,982 | 20.4 | % | 219,145 | 19.8 | % | 215,772 | 19.9 | % | 212,285 | 20.6 | % | |||||||||
Retail and local time deposits <= | 136,230 | 12.1 | % | 138,821 | 12.8 | % | 140,443 | 12.8 | % | 142,439 | 13.2 | % | 140,895 | 13.7 | % | |||||||||
Total core deposits | 1,022,879 | 91.8 | % | 1,016,243 | 93.3 | % | 1,057,587 | 95.7 | % | 1,038,376 | 95.9 | % | 992,924 | 96.2 | % | |||||||||
Retail and local time deposits > | 26,882 | 2.4 | % | 28,754 | 2.6 | % | 28,659 | 2.6 | % | 24,824 | 2.3 | % | 25,834 | 2.5 | % | |||||||||
Broker & national time deposits <= | 7,443 | 0.7 | % | 7,443 | 0.7 | % | 7,793 | 0.7 | % | 8,640 | 0.8 | % | 10,874 | 1.1 | % | |||||||||
Broker & national time deposits > | 56,255 | 5.1 | % | 36,965 | 3.4 | % | 11,201 | 1.0 | % | 11,201 | 1.0 | % | 1,994 | 0.2 | % | |||||||||
Totals | $ | 1,113,459 | 100.0 | % | $ | 1,089,405 | 100.0 | % | $ | 1,105,240 | 100.0 | % | $ | 1,083,041 | 100.0 | % | $ | 1,031,626 | 100.0 | % | ||||
Average Balances ( | ||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Quarter ended | Quarter ended | Quarter ended | ||||||||||||||||||||||||
Average | Yield / | Average | Yield / | Average | Yield / | |||||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||
Loans (1)(2) | $ | 917,065 | $ | 9,305 | 4.07 | % | $ | 891,257 | $ | 9,065 | 4.12 | % | $ | 906,233 | $ | 9,983 | 4.42 | % | ||||||||
Taxable securities | 205,040 | 859 | 1.68 | % | 216,965 | 762 | 1.42 | % | 153,960 | 553 | 1.44 | % | ||||||||||||||
Tax-exempt securities (2) | 79,936 | 680 | 3.41 | % | 87,719 | 675 | 3.12 | % | 84,593 | 639 | 3.03 | % | ||||||||||||||
FHLB stock | 2,650 | 16 | 2.42 | % | 2,646 | 34 | 5.21 | % | 2,625 | 23 | 3.51 | % | ||||||||||||||
Other | 20,651 | 36 | 0.70 | % | 20,448 | 8 | 0.16 | % | 42,253 | 17 | 0.16 | % | ||||||||||||||
Total (2) | 1,225,342 | 10,896 | 3.57 | % | 1,219,035 | 10,544 | 3.51 | % | 1,189,664 | 11,215 | 3.78 | % | ||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||||
Cash and due from banks | 18,731 | 17,996 | 25,422 | |||||||||||||||||||||||
Premises and equipment, | ||||||||||||||||||||||||||
net | 13,039 | 12,732 | 11,640 | |||||||||||||||||||||||
Cash surrender value ins | 24,510 | 24,361 | 23,906 | |||||||||||||||||||||||
Other assets | 21,639 | 16,719 | 16,004 | |||||||||||||||||||||||
Allowance for loan | ||||||||||||||||||||||||||
losses | (12,355 | ) | (12,278 | ) | (11,816 | ) | ||||||||||||||||||||
Total | $ | 1,290,906 | $ | 1,278,565 | $ | 1,254,820 | ||||||||||||||||||||
Liabilities & stockholders' equity | ||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||
Savings and demand | ||||||||||||||||||||||||||
deposits | $ | 379,734 | $ | 122 | 0.13 | % | $ | 396,261 | $ | 69 | 0.07 | % | $ | 352,572 | $ | 65 | 0.07 | % | ||||||||
Money market deposits | 217,639 | 121 | 0.22 | % | 218,367 | 89 | 0.17 | % | 213,122 | 96 | 0.18 | % | ||||||||||||||
Time deposits | 224,539 | 352 | 0.63 | % | 198,431 | 285 | 0.58 | % | 182,758 | 324 | 0.71 | % | ||||||||||||||
FHLB borrowings | 62,659 | 234 | 1.50 | % | 51,200 | 169 | 1.34 | % | 71,846 | 221 | 1.23 | % | ||||||||||||||
Other borrowings | 5,028 | 4 | 0.32 | % | 6,452 | 2 | 0.13 | % | 25,525 | 8 | 0.13 | % | ||||||||||||||
Senior sub. notes | 2,500 | 28 | 4.49 | % | 2,500 | 28 | 4.54 | % | 2,500 | 28 | 4.49 | % | ||||||||||||||
Junior sub. debentures | 12,755 | 179 | 5.63 | % | 12,730 | 166 | 5.29 | % | 11,827 | 165 | 5.60 | % | ||||||||||||||
Total | 904,854 | 1,040 | 0.46 | % | 885,941 | 808 | 0.37 | % | 860,150 | 907 | 0.42 | % | ||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||||
Demand deposits | 277,402 | 271,755 | 274,777 | |||||||||||||||||||||||
Other liabilities | 10,389 | 12,066 | 11,430 | |||||||||||||||||||||||
Stockholders' equity | 98,261 | 108,803 | 108,463 | |||||||||||||||||||||||
Total | $ | 1,290,906 | $ | 1,278,565 | $ | 1,254,820 | ||||||||||||||||||||
Net interest income | $ | 9,856 | $ | 9,736 | $ | 10,308 | ||||||||||||||||||||
Rate spread | 3.11 | % | 3.14 | % | 3.36 | % | ||||||||||||||||||||
Net yield on interest-earning assets | 3.23 | % | 3.24 | % | 3.48 | % | ||||||||||||||||||||
(1) Nonaccrual loans are included in the daily average loan balances outstanding. | ||||||||||||||||||||||||||
(2) The yield on tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%. | ||||||||||||||||||||||||||
Average Balances ( | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||
Six months ended | Six months ended | ||||||||||||||||
Average | Yield/ | Average | Yield/ | ||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||
Assets | |||||||||||||||||
Interest-earning assets: | |||||||||||||||||
Loans (1)(2) | $ | 904,232 | $ | 18,370 | 4.10 | % | $ | 872,694 | $ | 19,438 | 4.49 | % | |||||
Taxable securities | 210,968 | 1,621 | 1.55 | % | 148,280 | 1,060 | 1.44 | % | |||||||||
Tax-exempt securities (2) | 83,808 | 1,354 | 3.26 | % | 84,407 | 1,275 | 3.05 | % | |||||||||
FHLB stock | 2,648 | 50 | 3.81 | % | 2,455 | 44 | 3.61 | % | |||||||||
Other | 20,326 | 44 | 0.44 | % | 32,702 | 27 | 0.17 | % | |||||||||
Total (2) | 1,221,982 | 21,439 | 3.54 | % | 1,140,538 | 21,844 | 3.86 | % | |||||||||
Non-interest-earning assets: | |||||||||||||||||
Cash and due from banks | 18,366 | 19,866 | |||||||||||||||
Premises and equipment, | |||||||||||||||||
net | 12,886 | 11,338 | |||||||||||||||
Cash surrender value ins | 24,436 | 20,890 | |||||||||||||||
Other assets | 19,192 | 13,401 | |||||||||||||||
Allowance for loan | |||||||||||||||||
losses | (12,316 | ) | (11,507 | ) | |||||||||||||
Total | $ | 1,284,546 | $ | 1,194,526 | |||||||||||||
Liabilities & stockholders' equity | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||
Savings and demand | |||||||||||||||||
deposits | $ | 387,952 | $ | 191 | 0.10 | % | $ | 343,009 | $ | 130 | 0.08 | % | |||||
Money market deposits | 217,529 | 210 | 0.19 | % | 215,254 | 214 | 0.20 | % | |||||||||
Time deposits | 211,557 | 637 | 0.61 | % | 160,887 | 688 | 0.86 | % | |||||||||
FHLB borrowings | 56,961 | 403 | 1.43 | % | 66,950 | 436 | 1.31 | % | |||||||||
Other borrowings | 5,736 | 6 | 0.21 | % | 22,263 | 15 | 0.14 | % | |||||||||
Senior sub. notes | 2,500 | 56 | 4.52 | % | 2,500 | 56 | 4.52 | % | |||||||||
Junior sub. debentures | 12,742 | 345 | 5.46 | % | 10,199 | 254 | 5.02 | % | |||||||||
Total | 894,977 | 1,848 | 0.42 | % | 821,062 | 1,793 | 0.44 | % | |||||||||
Non-interest-bearing liabilities: | |||||||||||||||||
Demand deposits | 274,598 | 255,455 | |||||||||||||||
Other liabilities | 11,400 | 11,108 | |||||||||||||||
Stockholders' equity | 103,571 | 106,901 | |||||||||||||||
Total | $ | 1,284,546 | $ | 1,194,526 | |||||||||||||
Net interest income | $ | 19,591 | $ | 20,051 | |||||||||||||
Rate spread | 3.12 | % | 3.42 | % | |||||||||||||
Net yield on interest-earning assets | 3.23 | % | 3.55 | % | |||||||||||||
(1) Nonaccrual loans are included in the daily average loan balances outstanding. | |||||||||||||||||
(2) The yield on tax-exempt loans and securities is computed on a tax-equivalent basis using a tax rate of 21%. | |||||||||||||||||
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Source:
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