PSB’s second quarter 2023 operating results reflected the following changes from the first quarter of 2023: (1) lower net interest income due to rising deposit and FHLB advance costs; (2) higher non-interest income despite losses on sale of securities; (3) slightly higher non-interest expense related to health care expenses; (4) higher accumulated other comprehensive loss due to an increase in intermediate interest rates; (5) strong loan growth of
“We realized strong loan growth in the second quarter which has helped boost yields on the loan portfolio and offset increased interest expense. Additionally, with a gain realized on a life insurance policy, we were able to offset a loss on the sale of securities and right-size our investment portfolio with better asset yields. Towards the end of the quarter, and with the addition of new loans, we began to see the compression on our net interest margin stabilize,” stated
- Loans increased
$75.1 million in the second quarter endedJune 30, 2023 to$1.1 billion from$973.3 million at the end of the first quarterMarch 31, 2023 .
- Tangible book value per common share increased to
$22.64 atJune 30, 2023 from$22.43 one quarter earlier. Tangible book value per share benefited from fewer shares outstanding. Return on tangible common equity was 11.14% for the quarter endedJune 30, 2023 compared to 12.51% the prior quarter.
- Net interest income decreased to
$9.5 million for the quarter endedJune 30, 2023 , compared to$9.9 million for the quarter endedMarch 31, 2023 due to funding costs rising faster than increases in asset yields.
- Provision for loan losses remained at
$100,000 for the quarter endedJune 30, 2023 . The provision for the second quarter was largely related to new loan growth of$75.1 million .
- Noninterest income remained at
$2.0 million for the quarter endedJune 30, 2023 as losses on the sale of securities of$279,000 partially offset a$533,000 life insurance benefit. Investment and insurance sales commissions were also lower in the second quarter relative to the prior quarter.
- Net income adjusted for the non-recurring impact of a life insurance benefit and loss on the sale of securities was
$2.4 million , or$0.56 per common share.
- Noninterest expenses increased
$128,000 , or 1.6% for the second quarter of 2023 to$7.9 million from$7.8 million the prior quarter. The increase was primarily related to higher data processing and office operations costs.
- During the second quarter, PSB repurchased 48,055 shares of its common stock.
Balance Sheet and Asset Quality Review
Total assets increased slightly to
Total loans receivable increased
The allowance for loan losses declined slightly to 1.19% of gross loans at
Total deposits increased
The composition of deposits continued to change during the
FHLB advances increased to
Tangible stockholder equity as a percent of total tangible assets was 7.22% at
Tangible net book value per common share increased to
Operations Review
Net interest income decreased to
The increase in earning asset yields was partially due to higher yields on loans while yields on investment securities remained relatively flat during the quarter ended
Rising deposit costs for money market deposits, time deposits and FHLB advances were primarily responsible for the rise in the Bank’s cost of funds. The overall cost of deposits was 1.33% for the quarter ended
Total noninterest income increased slightly for the second quarter of 2023 to
Noninterest expenses increased slightly 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.
Investor Relations Contact
888.929.9902
InvestorRelations@bankpeoples.com
Consolidated Balance Sheets | |||||||||||||||
(dollars in thousands, except per share data) | 2023 | 2023 | 2022 | 2022 | 2022 | ||||||||||
Assets | |||||||||||||||
Cash and due from banks | $ | 27,409 | $ | 13,336 | $ | 28,561 | $ | 16,659 | $ | 19,149 | |||||
Interest-bearing deposits | 892 | 538 | 758 | 3,267 | 3,545 | ||||||||||
Federal funds sold | 16,138 | 25,766 | 90 | 20,751 | 16,689 | ||||||||||
Cash and cash equivalents | 44,439 | 39,640 | 29,409 | 40,677 | 39,383 | ||||||||||
Securities available for sale (at fair value) | 167,382 | 190,738 | 192,197 | 188,425 | 190,478 | ||||||||||
Securities held to maturity (fair values of | |||||||||||||||
$77,467 and $82,567 respectively | 87,335 | 87,889 | 87,816 | 87,993 | 88,216 | ||||||||||
Equity securities | 2,178 | 2,070 | 2,032 | 1,870 | 1,781 | ||||||||||
Bank certificates of deposit (at cost) | - | - | - | - | 245 | ||||||||||
Loans held for sale | 151 | - | - | - | 270 | ||||||||||
Loans receivable, net | 1,048,322 | 973,270 | 961,865 | 936,686 | 925,260 | ||||||||||
Accrued interest receivable | 4,274 | 4,062 | 4,006 | 3,493 | 3,285 | ||||||||||
Foreclosed assets | - | - | 160 | 160 | 160 | ||||||||||
Premises and equipment, net | 13,256 | 13,406 | 13,164 | 13,129 | 12,981 | ||||||||||
Mortgage servicing rights, net | 1,666 | 1,682 | 1,610 | 1,651 | 1,711 | ||||||||||
6,359 | 4,620 | 2,516 | 2,516 | 2,646 | |||||||||||
Cash surrender value of bank-owned life insurance | 23,776 | 25,078 | 24,922 | 24,765 | 24,608 | ||||||||||
Core deposit intangible | 321 | 348 | 382 | 415 | 449 | ||||||||||
2,541 | 2,541 | 2,541 | 2,541 | 2,541 | |||||||||||
Other assets | 14,933 | 14,444 | 15,069 | 15,248 | 13,550 | ||||||||||
TOTAL ASSETS | $ | 1,416,933 | $ | 1,359,788 | $ | 1,337,689 | $ | 1,319,569 | $ | 1,307,564 | |||||
Liabilities | |||||||||||||||
Non-interest-bearing deposits | $ | 282,153 | $ | 267,836 | $ | 292,338 | $ | 298,335 | $ | 283,592 | |||||
Interest-bearing deposits | 860,981 | 839,757 | 856,417 | 850,483 | 829,867 | ||||||||||
Total deposits | 1,143,134 | 1,107,593 | 1,148,755 | 1,148,818 | 1,113,459 | ||||||||||
133,000 | 113,000 | 43,000 | 40,000 | 67,000 | |||||||||||
Other borrowings | 5,730 | 5,033 | 12,985 | 10,449 | 4,601 | ||||||||||
Senior subordinated notes | 4,771 | 4,769 | 5,549 | 2,500 | 2,500 | ||||||||||
Junior subordinated debentures | 12,870 | 12,844 | 12,819 | 12,793 | 12,768 | ||||||||||
Accrued expenses and other liabilities | 12,495 | 11,338 | 12,639 | 10,114 | 10,938 | ||||||||||
Total liabilities | 1,312,000 | 1,254,577 | 1,235,747 | 1,224,674 | 1,211,266 | ||||||||||
Stockholders’ equity | |||||||||||||||
Preferred stock - no par value: | |||||||||||||||
Authorized - 30,000 shares; no shares issued or outstanding | |||||||||||||||
Outstanding - 7,200, 7,200, 7,200, 0, and 0 shares, respectively | 7,200 | 7,200 | 7,200 | - | - | ||||||||||
Common stock - no par value with a stated value of | |||||||||||||||
Authorized - 18,000,000 shares; Issued - 5,490,798 shares | |||||||||||||||
Outstanding - 4,190,252, 4,241,501, 4,297,279, 4,414,651 and | |||||||||||||||
4,423,037 shares, respectively | 1,830 | 1,830 | 1,830 | 1,830 | 1,830 | ||||||||||
Additional paid-in capital | 8,382 | 8,311 | 8,300 | 8,294 | 8,238 | ||||||||||
Retained earnings | 130,396 | 128,968 | 126,003 | 123,559 | 120,043 | ||||||||||
Accumulated other comprehensive income (loss), net of tax | (23,240 | ) | (22,515 | ) | (24,220 | ) | (24,200 | ) | (19,423 | ) | |||||
and 1,067,761 shares, respectively | (19,635 | ) | (18,583 | ) | (17,171 | ) | (14,588 | ) | (14,390 | ) | |||||
Total stockholders’ equity | 104,933 | 105,211 | 101,942 | 94,895 | 96,298 | ||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,416,933 | $ | 1,359,788 | $ | 1,337,689 | $ | 1,319,569 | $ | 1,307,564 | |||||
Consolidated Statements of Income | |||||||||||||||||||||||
Quarter Ended | Six Months Ended | ||||||||||||||||||||||
(dollars in thousands, | June | ||||||||||||||||||||||
except per share data - unaudited) | 2023 | 2023 | 2022 | 2022 | 2022 | 2023 | 2022 | ||||||||||||||||
Interest and dividend income: | |||||||||||||||||||||||
Loans, including fees | $ | 12,709 | $ | 11,773 | $ | 11,251 | $ | 10,225 | $ | 9,295 | $ | 24,482 | $ | 18,349 | |||||||||
Securities: | |||||||||||||||||||||||
Taxable | 1,327 | 1,331 | 1,218 | 978 | 859 | 2,658 | 1,621 | ||||||||||||||||
Tax-exempt | 535 | 537 | 539 | 540 | 537 | 1,072 | 1,070 | ||||||||||||||||
Other interest and dividends | 145 | 148 | 141 | 163 | 52 | 293 | 94 | ||||||||||||||||
Total interest and dividend income | 14,716 | 13,789 | 13,149 | 11,906 | 10,743 | 28,505 | 21,134 | ||||||||||||||||
Interest expense: | |||||||||||||||||||||||
Deposits | 3,661 | 2,989 | 2,060 | 1,341 | 595 | 6,650 | 1,038 | ||||||||||||||||
FHLB advances | 1,200 | 547 | 167 | 209 | 234 | 1,747 | 403 | ||||||||||||||||
Other borrowings | 48 | 62 | 38 | 14 | 4 | 110 | 6 | ||||||||||||||||
Senior subordinated notes | 58 | 62 | 55 | 28 | 28 | 120 | 56 | ||||||||||||||||
Junior subordinated debentures | 242 | 234 | 224 | 202 | 179 | 476 | 345 | ||||||||||||||||
Total interest expense | 5,209 | 3,894 | 2,544 | 1,794 | 1,040 | 9,103 | 1,848 | ||||||||||||||||
Net interest income | 9,507 | 9,895 | 10,605 | 10,112 | 9,703 | 19,402 | 19,286 | ||||||||||||||||
Provision for loan losses | 100 | 100 | - | - | - | 200 | - | ||||||||||||||||
Net interest income after provision for loan losses | 9,407 | 9,795 | 10,605 | 10,112 | 9,703 | 19,202 | 19,286 | ||||||||||||||||
Noninterest income: | |||||||||||||||||||||||
Service fees | 378 | 361 | 381 | 409 | 392 | 739 | 780 | ||||||||||||||||
Mortgage banking income | 311 | 325 | 235 | 228 | 299 | 636 | 752 | ||||||||||||||||
Investment and insurance sales commissions | 287 | 365 | 498 | 357 | 404 | 652 | 860 | ||||||||||||||||
Net loss on sale of securities | (279 | ) | - | - | - | - | (279 | ) | - | ||||||||||||||
Increase in cash surrender value of life insurance | 149 | 157 | 157 | 157 | 152 | 306 | 302 | ||||||||||||||||
Life insurance death benefit | 533 | - | - | - | - | 533 | - | ||||||||||||||||
Other noninterest income | 605 | 742 | 553 | 558 | 686 | 1,347 | 1,217 | ||||||||||||||||
Total noninterest income | 1,984 | 1,950 | 1,824 | 1,709 | 1,933 | 3,934 | 3,911 | ||||||||||||||||
Noninterest expense: | |||||||||||||||||||||||
Salaries and employee benefits | 4,884 | 5,006 | 4,700 | 4,302 | 4,548 | 9,890 | 8,938 | ||||||||||||||||
Occupancy and facilities | 698 | 699 | 641 | 687 | 629 | 1,397 | 1,294 | ||||||||||||||||
Loss (gain) on foreclosed assets | 4 | (50 | ) | 2 | 4 | - | (46 | ) | (6 | ) | |||||||||||||
Data processing and other office operations | 951 | 880 | 910 | 906 | 912 | 1,831 | 1,773 | ||||||||||||||||
Advertising and promotion | 166 | 162 | 180 | 185 | 173 | 328 | 325 | ||||||||||||||||
Core deposit intangible amortization | 27 | 34 | 34 | 34 | 38 | 61 | 85 | ||||||||||||||||
Other noninterest expenses | 1,202 | 1,073 | 1,219 | 1,069 | 1,151 | 2,275 | 2,234 | ||||||||||||||||
Total noninterest expense | 7,932 | 7,804 | 7,686 | 7,187 | 7,451 | 15,736 | 14,643 | ||||||||||||||||
Income before provision for income taxes | 3,459 | 3,941 | 4,743 | 4,634 | 4,185 | 7,400 | 8,554 | ||||||||||||||||
Provision for income taxes | 652 | 941 | 1,143 | 1,119 | 993 | 1,593 | 2,032 | ||||||||||||||||
Net income | $ | 2,807 | $ | 3,000 | $ | 3,600 | $ | 3,515 | $ | 3,192 | $ | 5,807 | $ | 6,522 | |||||||||
Preferred stock dividends declared | $ | 122 | $ | 122 | $ | 81 | $ | - | $ | - | $ | 122 | $ | - | |||||||||
Net income available to common shareholders | $ | 2,685 | $ | 2,878 | $ | 3,519 | $ | 3,515 | $ | 3,192 | $ | 5,685 | $ | 6,522 | |||||||||
Basic earnings per common share | $ | 0.64 | $ | 0.67 | $ | 0.80 | $ | 0.80 | $ | 0.72 | $ | 1.34 | $ | 1.47 | |||||||||
Diluted earnings per common share | $ | 0.64 | $ | 0.67 | $ | 0.80 | $ | 0.80 | $ | 0.72 | $ | 1.34 | $ | 1.47 | |||||||||
Quarterly Financial Summary | ||||||||||||||||||
(dollars in thousands, except per share data) | Quarter ended | |||||||||||||||||
Earnings and dividends: | 2023 | 2023 | 2022 | 2022 | 2022 | |||||||||||||
Interest income | $ | 14,716 | $ | 13,789 | $ | 13,149 | $ | 11,906 | $ | 10,743 | ||||||||
Interest expense | $ | 5,209 | $ | 3,894 | $ | 2,544 | $ | 1,794 | $ | 1,040 | ||||||||
Net interest income | $ | 9,507 | $ | 9,895 | $ | 10,605 | $ | 10,112 | $ | 9,703 | ||||||||
Provision for loan losses | $ | 100 | $ | 100 | $ | - | $ | - | $ | - | ||||||||
Other noninterest income | $ | 1,984 | $ | 1,950 | $ | 1,824 | $ | 1,709 | $ | 1,933 | ||||||||
Other noninterest expense | $ | 7,932 | $ | 7,804 | $ | 7,686 | $ | 7,187 | $ | 7,451 | ||||||||
Net income available to common shareholders | $ | 2,685 | $ | 2,878 | $ | 3,519 | $ | 3,515 | $ | 3,192 | ||||||||
Basic earnings per common share (3) | $ | 0.64 | $ | 0.67 | $ | 0.80 | $ | 0.80 | $ | 0.72 | ||||||||
Diluted earnings per common share (3) | $ | 0.64 | $ | 0.67 | $ | 0.80 | $ | 0.80 | $ | 0.72 | ||||||||
Dividends declared per common share (3) | $ | 0.30 | $ | - | $ | 0.25 | $ | - | $ | 0.25 | ||||||||
Tangible net book value per common share (4) | $ | 22.64 | $ | 22.43 | $ | 21.37 | $ | 20.83 | $ | 21.10 | ||||||||
Semi-annual dividend payout ratio | 27.38 | % | n/a | 15.27 | % | n/a | 16.96 | % | ||||||||||
Average common shares outstanding | 4,218,226 | 4,275,160 | 4,377,330 | 4,419,421 | 4,428,939 | |||||||||||||
Balance sheet - average balances: | ||||||||||||||||||
Loans receivable, net of allowances for loss | $ | 1,000,349 | $ | 964,029 | $ | 945,551 | $ | 931,344 | $ | 904,710 | ||||||||
Assets | $ | 1,367,363 | $ | 1,336,511 | $ | 1,321,776 | $ | 1,323,400 | $ | 1,290,906 | ||||||||
Deposits | $ | 1,098,039 | $ | 1,124,091 | $ | 1,146,066 | $ | 1,141,784 | $ | 1,099,314 | ||||||||
Stockholders’ equity | $ | 106,762 | $ | 103,406 | $ | 100,037 | $ | 98,630 | $ | 98,261 | ||||||||
Performance ratios: | ||||||||||||||||||
Return on average assets (1) | 0.79 | % | 0.87 | % | 1.06 | % | 1.05 | % | 0.99 | % | ||||||||
Return on average stockholders’ equity (1) | 10.09 | % | 11.29 | % | 13.96 | % | 14.14 | % | 13.03 | % | ||||||||
Return on average tangible common | ||||||||||||||||||
stockholders’ equity (1)(4) | 11.14 | % | 12.51 | % | 15.12 | % | 14.58 | % | 13.29 | % | ||||||||
Net loan charge-offs to average loans (1) | -0.07 | % | -0.02 | % | 0.03 | % | 0.01 | % | -0.02 | % | ||||||||
Nonperforming loans to gross loans | 0.60 | % | 0.62 | % | 0.64 | % | 1.16 | % | 1.21 | % | ||||||||
Nonperforming assets to total assets | 0.45 | % | 0.45 | % | 0.48 | % | 0.85 | % | 0.88 | % | ||||||||
Allowance for loan losses to gross loans | 1.19 | % | 1.25 | % | 1.26 | % | 1.30 | % | 1.32 | % | ||||||||
Nonperforming assets to tangible equity | ||||||||||||||||||
plus the allowance for loan losses (4) | 5.96 | % | 5.76 | % | 6.22 | % | 10.89 | % | 11.04 | % | ||||||||
Net interest rate margin (1)(2) | 2.98 | % | 3.21 | % | 3.41 | % | 3.24 | % | 3.23 | % | ||||||||
Net interest rate spread (1)(2) | 2.46 | % | 2.77 | % | 3.10 | % | 3.04 | % | 3.11 | % | ||||||||
Service fee revenue as a percent of | ||||||||||||||||||
average demand deposits (1) | 0.58 | % | 0.52 | % | 0.50 | % | 0.56 | % | 0.57 | % | ||||||||
Noninterest income as a percent | ||||||||||||||||||
of gross revenue | 11.88 | % | 12.39 | % | 12.18 | % | 12.55 | % | 15.25 | % | ||||||||
Efficiency ratio (2) | 68.09 | % | 65.02 | % | 61.06 | % | 60.02 | % | 63.20 | % | ||||||||
Noninterest expenses to average assets (1) | 2.33 | % | 2.37 | % | 2.31 | % | 2.15 | % | 2.32 | % | ||||||||
Average stockholders’ equity less accumulated | ||||||||||||||||||
other comprehensive income (loss) to | ||||||||||||||||||
average assets | 9.33 | % | 9.32 | % | 9.23 | % | 8.95 | % | 8.80 | % | ||||||||
Tangible equity to tangible assets (4) | 7.22 | % | 7.54 | % | 7.42 | % | 6.98 | % | 7.15 | % | ||||||||
Stock price information: | ||||||||||||||||||
High | $ | 21.38 | $ | 25.75 | $ | 22.74 | $ | 23.94 | $ | 26.35 | ||||||||
Low | $ | 19.75 | $ | 20.00 | $ | 21.50 | $ | 22.50 | $ | 22.82 | ||||||||
Last trade value at quarter-end | $ | 20.35 | $ | 21.15 | $ | 21.90 | $ | 22.50 | $ | 23.50 | ||||||||
(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) | 2023 | 2023 | 2022 | 2022 | 2022 | |||||||||||||
Net income | $ | 2,807 | $ | 3,000 | $ | 3,600 | $ | 3,515 | $ | 3,192 | ||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||
Unrealized gain (loss) on securities available | ||||||||||||||||||
for sale | (1,168 | ) | 1,601 | (116 | ) | (4,915 | ) | (5,573 | ) | |||||||||
Reclassification adjustment for security | ||||||||||||||||||
loss included in net income | 202 | - | - | - | - | |||||||||||||
Amortization of unrealized loss included in net | ||||||||||||||||||
income on securities available for sale | ||||||||||||||||||
transferred to securities held to maturity | 107 | 129 | 93 | 92 | 176 | |||||||||||||
Unrealized gain (loss) on interest rate swap | 161 | (1 | ) | 11 | 32 | 43 | ||||||||||||
Reclassification adjustment of interest rate | ||||||||||||||||||
swap settlements included in earnings | (27 | ) | (24 | ) | (8 | ) | 13 | 28 | ||||||||||
Other comprehensive income (loss) | (725 | ) | 1,705 | (20 | ) | (4,778 | ) | (5,326 | ) | |||||||||
Comprehensive income (loss) | $ | 2,082 | $ | 4,705 | $ | 3,580 | $ | (1,263 | ) | $ | (2,134 | ) | ||||||
Nonperforming Assets as of: | |||||||||||||||
(dollars in thousands) | 2023 | 2023 | 2022 | 2022 | 2022 | ||||||||||
Nonaccrual loans (excluding restructured loans) | $ | 6,000 | $ | 5,773 | $ | 5,879 | $ | 6,048 | $ | 6,036 | |||||
Nonaccrual restructured loans | 50 | 57 | 62 | 70 | 146 | ||||||||||
Restructured loans not on nonaccrual | 261 | 265 | 270 | 4,904 | 5,137 | ||||||||||
Accruing loans past due 90 days or more | - | - | - | - | - | ||||||||||
Total nonperforming loans | 6,311 | 6,095 | 6,211 | 11,022 | 11,319 | ||||||||||
Other real estate owned | - | - | 160 | 160 | 160 | ||||||||||
Total nonperforming assets | $ | 6,311 | $ | 6,095 | $ | 6,371 | $ | 11,182 | $ | 11,479 | |||||
Nonperforming loans as a % of gross loans receivable | 0.60 | % | 0.62 | % | 0.64 | % | 1.16 | % | 1.21 | % | |||||
Total nonperforming assets as a % of total assets | 0.45 | % | 0.45 | % | 0.48 | % | 0.85 | % | 0.88 | % | |||||
Allowance for loan losses as a % of nonperforming loans | 177.63 | % | 191.63 | % | 197.92 | % | 112.28 | % | 109.48 | % | |||||
Nonperforming Assets >= | |||||||
At | |||||||
(dollars in thousands) | |||||||
Gross | Specific | ||||||
Collateral Description | Asset Type | Principal | Reserves | ||||
Real estate - | Nonaccrual | $ | 2,807 | $ | 1,058 | ||
Real estate - Independent | Nonaccrual | 726 | 34 | ||||
Total listed nonperforming assets | $ | 3,533 | $ | 1,112 | |||
Total bank wide nonperforming assets | $ | 6,311 | $ | 1,638 | |||
Listed assets as a % of total nonperforming assets | 56 | % | 68 | % | |||
Loan Composition by Purpose | |||||||||||||||
Quarter-ended (dollars in thousands) | 2023 | 2023 | 2022 | 2022 | 2022 | ||||||||||
Residential real estate: | |||||||||||||||
One to four family | $ | 199,100 | $ | 187,325 | $ | 182,688 | $ | 172,913 | $ | 169,437 | |||||
HELOC loans | 19,498 | 18,141 | 17,625 | 18,423 | 17,776 | ||||||||||
Residential construction & development | 18,634 | 22,014 | 20,698 | 22,313 | 22,462 | ||||||||||
Residential vacant land | 1,111 | 1,223 | 1,414 | 3,069 | 1,599 | ||||||||||
Total Residential real estate | 238,343 | 228,703 | 222,425 | 216,718 | 211,274 | ||||||||||
Commercial/Agricultural real estate: | |||||||||||||||
Owner occupied | |||||||||||||||
Commercial real estate | 238,608 | 237,217 | 220,375 | 211,008 | 205,976 | ||||||||||
SBA commercial real estate | 2,078 | 2,112 | 2,514 | 2,616 | 2,458 | ||||||||||
Agriculture real estate | 3,563 | 3,681 | 3,835 | 3,902 | 3,583 | ||||||||||
Construction and land development | 1,691 | 2,825 | 22,330 | 32,158 | 31,465 | ||||||||||
Commercial vacant land | 7,223 | 6,712 | 7,291 | 5,214 | 5,351 | ||||||||||
Total Owner occupied | 253,163 | 252,547 | 256,345 | 254,898 | 248,833 | ||||||||||
Non-owner occupied | |||||||||||||||
Commercial real estate | 240,010 | 226,280 | 228,761 | 225,823 | 227,400 | ||||||||||
One to four family residential rental | 67,854 | 65,673 | 64,764 | 66,224 | 61,749 | ||||||||||
Construction and land development | 49,310 | 41,272 | 27,253 | 25,543 | 25,086 | ||||||||||
Commercial vacant land | 10,424 | 3,928 | 3,862 | 4,010 | 4,287 | ||||||||||
Total Non-owner occupied | 367,598 | 337,153 | 324,640 | 321,600 | 318,522 | ||||||||||
Commercial/Agricultural non-real estate: | |||||||||||||||
Municipal non-real estate | 25,223 | 6,430 | 9,915 | 7,133 | 6,352 | ||||||||||
Commercial line | 73,651 | 57,727 | 63,173 | 56,154 | 65,728 | ||||||||||
Other commercial non-real estate | 92,519 | 92,419 | 87,535 | 82,430 | 76,065 | ||||||||||
SBA commercial non-real estate | 3,787 | 3,997 | 3,533 | 3,378 | 3,926 | ||||||||||
Agricultural non-real estate | 1,204 | 1,250 | 1,290 | 1,491 | 1,409 | ||||||||||
Total Commercial/Agr. non-real estate | 196,384 | 161,823 | 165,446 | 150,586 | 153,480 | ||||||||||
Consumer non-real estate: | |||||||||||||||
Consumer installment | 3,483 | 3,357 | 4,072 | 4,005 | 4,305 | ||||||||||
Consumer line | 441 | 529 | 382 | 494 | 493 | ||||||||||
Other consumer | 106 | 108 | 115 | 116 | 123 | ||||||||||
Total Consumer non-real estate | 4,030 | 3,994 | 4,569 | 4,615 | 4,921 | ||||||||||
Gross loans | 1,059,518 | 984,220 | 973,425 | 948,417 | 937,030 | ||||||||||
Net deferred loan costs (fees) | 605 | 542 | 573 | 537 | 503 | ||||||||||
Overdrafts | 121 | 101 | 160 | 107 | 119 | ||||||||||
Allowance for loan losses | (11,922 | ) | (11,593 | ) | (12,293 | ) | (12,375 | ) | (12,392 | ) | |||||
Total loans receivable | $ | 1,048,322 | $ | 973,270 | $ | 961,865 | $ | 936,686 | $ | 925,260 | |||||
Selected Commercial Real Estate Loans by Purpose | ||||||||||||||||||||||||
(dollars in thousands) | 2023 | 2023 | 2022 | 2022 | 2022 | |||||||||||||||||||
$ | % | $ | % | $ | % | $ | % | $ | % | |||||||||||||||
Total Exposure | % of Portfolio (1) | Total Exposure | % of Portfolio (1) | Total Exposure | % of Portfolio (1) | Total Exposure | % of Portfolio (1) | Total Exposure | % of Portfolio (1) | |||||||||||||||
Multi Family | $ | 119,573 | 12.4 | % | $ | 121,559 | 13.0 | % | $ | 120,232 | 13.1 | % | $ | 141,414 | 15.6 | % | $ | 143,074 | 15.7 | % | ||||
Industrial and Warehousing | $ | 84,049 | 8.7 | % | $ | 78,934 | 8.5 | % | $ | 76,536 | 8.3 | % | $ | 83,033 | 9.1 | % | $ | 79,073 | 8.7 | % | ||||
Retail | $ | 34,004 | 3.5 | % | $ | 34,427 | 3.7 | % | $ | 32,587 | 3.5 | % | $ | 39,279 | 4.3 | % | $ | 39,013 | 4.3 | % | ||||
Hotels | $ | 33,329 | 3.5 | % | $ | 31,069 | 3.3 | % | $ | 32,940 | 3.6 | % | $ | 26,958 | 3.0 | % | $ | 26,948 | 3.0 | % | ||||
Office | $ | 8,395 | 0.9 | % | $ | 8,544 | 0.9 | % | $ | 8,652 | 0.9 | % | $ | 8,758 | 1.0 | % | $ | 8,862 | 1.0 | % | ||||
(1) Percentage of portfolio and commitments. | ||||||||||||||||||||||||
Deposit Composition | ||||||||||||||||||||
Insured and Collateralized Deposits | ||||||||||||||||||||
(dollars in thousands) | 2023 | 2023 | 2022 | 2022 | 2022 | |||||||||||||||
$ | % | $ | % | $ | % | $ | % | $ | % | |||||||||||
Non-interest bearing demand | $ | 201,351 | 17.6 | % | $ | 205,350 | 18.6 | % | $ | 203,115 | 17.7 | % | $ | 216,116 | 18.7 | % | $ | 207,852 | 18.6 | % |
Interest-bearing demand and savings | 310,006 | 27.1 | % | 329,364 | 29.7 | % | 345,854 | 30.1 | % | 348,989 | 30.4 | % | 331,034 | 29.7 | % | |||||
Money market deposits | 126,851 | 11.1 | % | 128,576 | 11.6 | % | 131,400 | 11.4 | % | 130,126 | 11.3 | % | 132,374 | 11.9 | % | |||||
Retail and local time deposits <= | 140,572 | 12.3 | % | 136,090 | 12.3 | % | 130,205 | 11.3 | % | 132,095 | 11.5 | % | 136,230 | 12.2 | % | |||||
Total core deposits | 778,780 | 68.1 | % | 799,380 | 72.2 | % | 810,574 | 70.5 | % | 827,326 | 71.9 | % | 807,490 | 72.4 | % | |||||
Retail and local time deposits > | 20,250 | 1.8 | % | 17,000 | 1.5 | % | 14,500 | 1.3 | % | 12,250 | 1.1 | % | 13,000 | 1.2 | % | |||||
Broker & national time deposits <= | 3,965 | 0.3 | % | 5,953 | 0.5 | % | 6,451 | 0.6 | % | 6,700 | 0.6 | % | 7,443 | 0.7 | % | |||||
Broker & national time deposits > | 93,956 | 8.2 | % | 74,485 | 6.8 | % | 82,439 | 7.2 | % | 82,439 | 7.2 | % | 56,255 | 5.1 | % | |||||
Totals | $ | 896,951 | 78.4 | % | $ | 896,818 | 81.0 | % | $ | 913,964 | 79.6 | % | $ | 928,715 | 80.8 | % | $ | 884,188 | 79.4 | % |
Deposit Composition | ||||||||||||||||||||
Uninsured Deposits | ||||||||||||||||||||
(dollars in thousands) | 2023 | 2023 | 2022 | 2022 | 2022 | |||||||||||||||
$ | % | $ | % | $ | % | $ | % | $ | % | |||||||||||
Non-interest bearing demand | $ | 80,802 | 7.1 | % | $ | 62,486 | 5.6 | % | $ | 89,223 | 7.7 | % | $ | 82,219 | 7.2 | % | $ | 75,740 | 6.8 | % |
Interest-bearing demand and savings | 22,604 | 2.0 | % | 24,854 | 2.2 | % | 49,917 | 4.3 | % | 28,842 | 2.5 | % | 45,116 | 4.1 | % | |||||
Money market deposits | 127,871 | 11.2 | % | 109,894 | 10.0 | % | 84,673 | 7.4 | % | 98,493 | 8.6 | % | 94,533 | 8.5 | % | |||||
Retail and local time deposits <= | 0 | 0.0 | % | 0 | 0.0 | % | 0 | 0.0 | % | - | 0.0 | % | - | 0.0 | % | |||||
Total core deposits | 231,277 | 20.3 | % | 197,234 | 17.8 | % | 223,813 | 19.4 | % | 209,554 | 18.3 | % | 215,389 | 19.4 | % | |||||
Retail and local time deposits > | 14,906 | 1.3 | % | 13,541 | 1.2 | % | 10,978 | 1.0 | % | 10,549 | 0.9 | % | 13,882 | 1.2 | % | |||||
Broker & national time deposits <= | 0 | 0.0 | % | 0 | 0.0 | % | 0 | 0.0 | % | - | 0.0 | % | - | 0.0 | % | |||||
Broker & national time deposits > | 0 | 0.0 | % | 0 | 0.0 | % | 0 | 0.0 | % | - | 0.0 | % | - | 0.0 | % | |||||
Totals | $ | 246,183 | 21.6 | % | $ | 210,775 | 19.0 | % | $ | 234,791 | 20.4 | % | $ | 220,103 | 19.2 | % | $ | 229,271 | 20.6 | % |
Deposit Composition | ||||||||||||||||||||
Total Deposits | ||||||||||||||||||||
(dollars in thousands) | 2023 | 2023 | 2022 | 2022 | 2022 | |||||||||||||||
$ | % | $ | % | $ | % | $ | % | $ | % | |||||||||||
Non-interest bearing demand | $ | 282,153 | 24.7 | % | $ | 267,836 | 24.2 | % | $ | 292,338 | 25.4 | % | $ | 298,335 | 26.0 | % | $ | 283,592 | 25.5 | % |
Interest-bearing demand and savings | 332,610 | 29.1 | % | 354,218 | 32.0 | % | 395,771 | 34.5 | % | 377,831 | 32.9 | % | 376,150 | 33.8 | % | |||||
Money market deposits | 254,722 | 22.3 | % | 238,470 | 21.5 | % | 216,073 | 18.8 | % | 228,619 | 19.9 | % | 226,907 | 20.4 | % | |||||
Retail and local time deposits <= | 140,572 | 12.3 | % | 136,090 | 12.3 | % | 130,205 | 11.3 | % | 132,095 | 11.4 | % | 136,230 | 12.1 | % | |||||
Total core deposits | 1,010,057 | 88.4 | % | 996,614 | 90.0 | % | 1,034,387 | 90.0 | % | 1,036,880 | 90.2 | % | 1,022,879 | 91.8 | % | |||||
Retail and local time deposits > | 35,156 | 3.1 | % | 30,541 | 2.8 | % | 25,478 | 2.2 | % | 22,799 | 2.0 | % | 26,882 | 2.4 | % | |||||
Broker & national time deposits <= | 3,965 | 0.3 | % | 5,953 | 0.5 | % | 6,451 | 0.6 | % | 6,700 | 0.6 | % | 7,443 | 0.7 | % | |||||
Broker & national time deposits > | 93,956 | 8.2 | % | 74,485 | 6.7 | % | 82,439 | 7.2 | % | 82,439 | 7.2 | % | 56,255 | 5.1 | % | |||||
Totals | $ | 1,143,134 | 100.0 | % | $ | 1,107,593 | 100.0 | % | $ | 1,148,755 | 100.0 | % | $ | 1,148,818 | 100.0 | % | $ | 1,113,459 | 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) | $ | 1,012,105 | $ | 12,726 | 5.04 | % | $ | 976,395 | $ | 11,788 | 4.90 | % | $ | 917,065 | $ | 9,305 | 4.07 | % | ||||||
Taxable securities | 196,048 | 1,327 | 2.71 | % | 199,705 | 1,331 | 2.70 | % | 205,040 | 859 | 1.68 | % | ||||||||||||
Tax-exempt securities (2) | 81,758 | 677 | 3.32 | % | 81,932 | 680 | 3.37 | % | 79,936 | 680 | 3.41 | % | ||||||||||||
FHLB stock | 5,366 | 51 | 3.81 | % | 3,059 | 50 | 6.63 | % | 2,650 | 16 | 2.42 | % | ||||||||||||
Other | 7,254 | 94 | 5.20 | % | 9,024 | 98 | 4.40 | % | 20,651 | 36 | 0.70 | % | ||||||||||||
Total (2) | 1,302,531 | 14,875 | 4.58 | % | 1,270,115 | 13,947 | 4.45 | % | 1,225,342 | 10,896 | 3.57 | % | ||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||
Cash and due from banks | 15,632 | 17,255 | 18,731 | |||||||||||||||||||||
Premises and equipment, | ||||||||||||||||||||||||
net | 13,336 | 13,332 | 13,039 | |||||||||||||||||||||
Cash surrender value ins | 24,530 | 24,982 | 24,510 | |||||||||||||||||||||
Other assets | 23,090 | 23,193 | 21,639 | |||||||||||||||||||||
Allowance for loan | ||||||||||||||||||||||||
losses | (11,756 | ) | (12,366 | ) | (12,355 | ) | ||||||||||||||||||
Total | $ | 1,367,363 | $ | 1,336,511 | $ | 1,290,906 | ||||||||||||||||||
Liabilities & stockholders’ equity | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Savings and demand | ||||||||||||||||||||||||
deposits | $ | 344,435 | $ | 1,035 | 1.21 | % | $ | 373,557 | $ | 1,053 | 1.14 | % | $ | 379,734 | $ | 122 | 0.13 | % | ||||||
Money market deposits | 243,073 | 1,189 | 1.96 | % | 225,624 | 830 | 1.49 | % | 217,639 | 121 | 0.22 | % | ||||||||||||
Time deposits | 247,007 | 1,437 | 2.33 | % | 245,562 | 1,106 | 1.83 | % | 224,539 | 352 | 0.63 | % | ||||||||||||
FHLB borrowings | 127,441 | 1,200 | 3.78 | % | 68,833 | 547 | 3.22 | % | 62,659 | 234 | 1.50 | % | ||||||||||||
Other borrowings | 5,588 | 48 | 3.45 | % | 10,025 | 62 | 2.51 | % | 5,028 | 4 | 0.32 | % | ||||||||||||
Senior sub. notes | 4,770 | 58 | 4.88 | % | 5,159 | 62 | 4.87 | % | 2,500 | 28 | 4.49 | % | ||||||||||||
Junior sub. debentures | 12,857 | 242 | 7.55 | % | 12,832 | 234 | 7.40 | % | 12,755 | 179 | 5.63 | % | ||||||||||||
Total | 985,171 | 5,209 | 2.12 | % | 941,592 | 3,894 | 1.68 | % | 904,854 | 1,040 | 0.46 | % | ||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | 263,524 | 279,348 | 277,402 | |||||||||||||||||||||
Other liabilities | 11,906 | 12,208 | 10,389 | |||||||||||||||||||||
Stockholders’ equity | 106,762 | 103,363 | 98,261 | |||||||||||||||||||||
Total | $ | 1,367,363 | $ | 1,336,511 | $ | 1,290,906 | ||||||||||||||||||
Net interest income | $ | 9,666 | $ | 10,053 | $ | 9,856 | ||||||||||||||||||
Rate spread | 2.46 | % | 2.77 | % | 3.11 | % | ||||||||||||||||||
Net yield on interest-earning assets | 2.98 | % | 3.21 | % | 3.23 | % | ||||||||||||||||||
(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) | $ | 994,349 | $ | 24,514 | 4.97 | % | $ | 904,232 | $ | 18,370 | 4.10 | % | |||||
Taxable securities | 197,866 | 2,658 | 2.71 | % | 210,968 | 1,621 | 1.55 | % | |||||||||
Tax-exempt securities (2) | 81,844 | 1,357 | 3.34 | % | 83,808 | 1,354 | 3.26 | % | |||||||||
FHLB stock | 4,219 | 101 | 4.83 | % | 2,648 | 50 | 3.81 | % | |||||||||
Other | 8,143 | 192 | 4.75 | % | 20,326 | 44 | 0.44 | % | |||||||||
Total (2) | 1,286,421 | 28,822 | 4.52 | % | 1,221,982 | 21,439 | 3.54 | % | |||||||||
Non-interest-earning assets: | |||||||||||||||||
Cash and due from banks | 16,439 | 18,366 | |||||||||||||||
Premises and equipment, | |||||||||||||||||
net | 13,334 | 12,886 | |||||||||||||||
Cash surrender value ins | 24,755 | 24,436 | |||||||||||||||
Other assets | 23,139 | 19,192 | |||||||||||||||
Allowance for loan | |||||||||||||||||
losses | (12,016 | ) | (12,316 | ) | |||||||||||||
Total | $ | 1,352,072 | $ | 1,284,546 | |||||||||||||
Liabilities & stockholders’ equity | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||
Savings and demand | |||||||||||||||||
deposits | $ | 358,916 | $ | 2,088 | 1.17 | % | $ | 387,952 | $ | 191 | 0.10 | % | |||||
Money market deposits | 234,044 | 2,019 | 1.74 | % | 217,529 | 210 | 0.19 | % | |||||||||
Time deposits | 246,289 | 2,543 | 2.08 | % | 211,557 | 637 | 0.61 | % | |||||||||
FHLB borrowings | 98,299 | 1,747 | 3.58 | % | 56,961 | 403 | 1.43 | % | |||||||||
Other borrowings | 7,794 | 110 | 2.85 | % | 5,736 | 6 | 0.21 | % | |||||||||
Senior sub. notes | 5,030 | 120 | 4.81 | % | 2,500 | 56 | 4.52 | % | |||||||||
Junior sub. debentures | 12,844 | 476 | 7.47 | % | 12,742 | 345 | 5.46 | % | |||||||||
Total | 963,216 | 9,103 | 1.91 | % | 894,977 | 1,848 | 0.42 | % | |||||||||
Non-interest-bearing liabilities: | |||||||||||||||||
Demand deposits | 271,310 | 274,598 | |||||||||||||||
Other liabilities | 12,231 | 11,400 | |||||||||||||||
Stockholders’ equity | 105,315 | 103,571 | |||||||||||||||
Total | $ | 1,352,072 | $ | 1,284,546 | |||||||||||||
Net interest income | $ | 19,719 | $ | 19,591 | |||||||||||||
Rate spread | 2.61 | % | 3.12 | % | |||||||||||||
Net yield on interest-earning assets | 3.09 | % | 3.23 | % | |||||||||||||
(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%. |
Source:
2023 GlobeNewswire, Inc., source