OAKLAND, Calif., Feb. 05, 2020 – California BanCorp (the “Company”) (OTCQX-CALB), the parent company of California Bank of Commerce (the “Bank”), today announced its financial results for the fourth quarter and year ended December 31, 2019.

Net income was $578 thousand for the fourth quarter of 2019, representing a decrease of $1.4 million, or 70% compared to $2.0 million for the third quarter of 2019. For the year ended December 31, 2019, net income was $7.0 million representing a decrease of $1.7 million or 20% compared to $8.7 million in 2018.

Diluted earnings per share of $0.07 for the fourth quarter of 2019 compared to $0.25 for the third quarter of 2019. For the year ended December 31, 2019, diluted earnings per share of $0.86 compared to $1.19 in 2018.

“The past year has been one of meaningful investment in the future potential of our franchise. During 2019 we added substantial capabilities, in people and systems, to extend our markets and enhance our effectiveness in all markets,” said Steve Shelton, President and Chief Executive Officer. “As we move forward, we expect to continue our momentum in building a quality balance sheet and driving operating leverage in our business.”

“Our fourth quarter results were significantly impacted by our push to complete key initiatives and aggressively resolve a legacy problem loan,” stated Thomas A. Sa, Senior Executive Vice President, Chief Financial Officer and Chief Operating Officer. “At the same time, we made remarkable progress in quality measures for our business by growing average deposits by over $100 million, $45 million of which came in noninterest-bearing demand deposits, and by reducing nonperforming assets by half.”

Financial Highlights

Financial Position

December 31, 2019 compared to December 31, 2018

  • Total assets increased by $146.4 million, or 15% to a record level of $1.15 billion.
  • Total deposits increased by $114.0 million, or 13% to a record level of $988.2 million. Average total deposits increased $79.0 million, or 10%.
  • Gross loans increased by $104.9 million, or 12% to a record level of $949.7 million. Average gross loans increased $148.3 million, or 20%.
  • Total equity increased by $9.2 million, or 8% to $130.3 million.

December 31, 2019 compared to September 30, 2019

  • Total assets increased by $57.4 million, or 5% to a record level of $1.15 billion.
  • Total deposits increased by $64.3 million, or 7%. Average total deposits increased $102.0 million, or 11%.
  • Average noninterest-bearing demand deposits increased $45.0 million, or 13%.
  • Gross loans increased by $16.4 million, or 2%. Average gross loans grew $20.8 million, or 2%.

Income Statement

Years ended December 31, 2019 compared to December 31, 2018

  • Net income decreased by $1.7 million, or 20% to $7.0 million.
  • Net interest income increased by $5.1 million, or 14% to $40.9 million.
  • Total revenue increased by $5.6 million, or 14% to $45.2 million.
  • Provision for loan losses increased by $890.0 thousand, or 62%, to $2.3 million.
  • Operating expenses increased by $6.9 million, or 26%, to $33.2 million.

 Three months ended December 31, 2019 compared to September 30, 2019

  • Net income decreased by $1.4 million, or 71% to $578 thousand.
  • Net interest income increased by $151 thousand, or 1% to $10.6 million.
  • Provision for loan losses increased by $500.0 thousand, or 100%, to $1.0 million.
  • Operating expenses increased $1.4 million, or 17%, to $9.8 million.

Balance Sheet

Total assets reached a record $1.15 billion as of December 31, 2019, up $146.4 million, or 15% compared to a year ago.

Total asset growth was driven by growth in deposits which increased by $114.0 million or 13% from $874.2 million at December 31, 2018, to $988.2 million at December 31, 2019. Commercial noninterest-bearing deposits represented $34.9 million of total deposit growth year over year, and represented growth of 10% compared to December 31, 2018. Noninterest-bearing deposits at December 31, 2019 were 39% of total deposits compared to 40% of total deposits at December 31, 2018. Growth in interest-bearing deposits of $79.1 million was comprised of growth in money market balances of $63.1 million and time deposits of $23.4 million, partially offset by a decline in interest-bearing demand deposits of $7.5 million.

Total gross loans increased by $104.9 million, or 12% to $949.7 million at December 31, 2019, from $844.7 million at December 31, 2018. The largest categories of growth within the loan portfolio were in commercial real estate at $51.1 million and commercial & industrial loans at $48.6 million.

Asset Quality

The allowance for loan losses increased by $275 thousand to $11.1 million, or 1.17% of total loans at December 31, 2019, compared to $10.8 million, or 1.28% of total loans at December 31, 2018. The change in the allowance was primarily the result of the charge-off activity in 2019, which partially offset provisions to accommodate loan growth.

Non-performing assets (“NPAs”) to total assets of 0.24% at December 31, 2019, compared to 0.44% at December 31, 2018, with non-performing loans of $2.7 million and $4.5 million, respectively, on those dates. At December 31, 2019, the allowance represented 402% coverage of non-performing assets, up from 242% at December 31, 2018.

 Shareholder’s Equity

Total shareholder’s equity increased by $9.2 million, or 8% to $130.3 million at December 31, 2019, from $121.1 million at December 31, 2018. The increase is primarily attributed to earnings during the twelve-month period totaling $7.0 million, and the remainder resulting from shares issued under stock compensation plans and an increase in other comprehensive income. Tangible book value per common share increased by 7% between the periods, from $14.20 at December 31, 2018, to $15.16 at December 31, 2019.

 Net Interest Income and Net Interest Margin – Years ended December 31, 2019 and December 31, 2018

Net interest income for the year ended December 31, 2019, was $40.9 million, an increase of $5.1 million, or 14.2% over $35.8 million for the same period in 2018.

Average total interest-earning assets increased by $116.4 million, or 13.3% to $992.7 million during 2019, and the average yield increased 27 basis points to 4.94%, primarily as a result of the strong increase in average loan balances and higher balance sheet leverage. During the year the Bank benefited from a significant increase in average loan balances of $148.2 million or 19.6% to $903.9 million. The average yield on total average gross loans in 2019 was 5.30%, up by 5 basis points compared to the 5.25% yield during 2018. In addition, as growth in average loan balances outpaced growth in average deposits, the average loan to deposit ratio for the year ended December 31, 2019 was 101.1% compared to 92.7% in the same period of 2018.

Of the $79.0 million increase in average total deposit balances year over year, $9.6 million were noninterest-bearing deposits while $69.4 million were interest-bearing. In addition, the overall cost of average total deposit balances was up by 25 basis points to 0.80% during 2019 compared to 0.55% during 2018. Average borrowed funds increased by $17.7 million to $29.7 million during 2019 while the average cost decreased to 3.13% in 2019 compared to 5.37% in 2018.

As a result of the strong increase in average loan balances and increased balance sheet leverage the net interest margin increased by 3 basis points to 4.12% during 2019, compared to 4.09% for 2018.

Net Interest Income and Net Interest Margin – three months ended December 31, 2019 and September 30, 2019

 Net interest income was $10.6 million for the three months ended December 31, 2019, an increase of $150.7 thousand or 1% over $10.4 million for the third quarter ended September 30, 2019. The increase in net interest income includes an increase of $248.2 thousand in interest income comprised of increases in interest and fees on loans of $45.0 thousand and interest on excess funds of $262.6 thousand, offset in part by a decrease in interest earned on investment securities of $59.2 thousand.

Partially offsetting the growth in interest income was an increase of $97.5 thousand in interest expense. The growth in interest expense was comprised of growth in interest expense paid on deposits of $167.7 thousand offset by a decrease in interest expense on borrowed funds of $70.3 thousand. Growth in deposit expense was the result of growth in average interest-bearing deposits of $57.0 million. Interest expense on borrowed funds decreased as a result of lower utilization of wholesale funding, which decreased by $12.1 million on average in the quarter ended December 31, 2019 compared to the preceding quarter of 2019.

Compared to the third quarter of 2019, average deposit growth of $102.0 million outpaced growth in average loans of $20.8 million. As a result, the average loan to deposit ratio during the quarter ended December 31, 2019 decreased to 94.4% from 102.8% in the third quarter of 2019. In addition, average loans comprised 87.1% of average earning assets during the fourth quarter of 2019, which was a decrease from 92.9% for the third quarter of 2019. Taken together, the impact of the lower loan to deposit ratio and the decrease in loans as a percentage of average earning assets resulted in a decrease in yield on average earning assets of 33 basis points to 4.72% in the fourth quarter of 2019 from 5.05% for the third quarter.

Growth in average deposit balances in the quarter ended December 31, 2019 compared to the quarter ended September 30, 2019, was comprised of increases in average noninterest-bearing deposits of $45.0 million, or 13%, and $57.0 million, or 10.3%, in interest-bearing deposits. The average rate paid on interest-bearing deposits decreased by 2 basis points to 1.36% in the fourth quarter of 2019 compared to 1.38% in the third quarter of 2019. Noninterest-bearing demand deposits averaged 38.6% of total deposits in the fourth quarter of 2019 compared to 38.0% for the prior quarter. In addition, average borrowed funds to supplement funding decreased $12.1 million or 45% in the quarter ended December 31, 2019 compared to the third quarter of 2019.

The combination of the strong average deposit growth and lower deposit leverage during the fourth quarter of 2019, when compared to the third quarter of 2019, resulted in a decrease of 29 basis points in net interest margin to 3.90% during the fourth quarter of 2019 compared to 4.19% in the prior quarter.

Non-Interest Income and Expense – Years ended December 31, 2019 and December 31, 2018

During the year ended December 31, 2019, non-interest income totaled $4.2 million, an increase of $532 thousand, or 14.3% over 2018. This increase was primarily the result of higher loan fee income.

During the year ended December 31, 2019, non-interest expenses increased by $6.9 million or 26% to $33.2 million compared to $26.4 million in 2018. Of this increase, $5.1 million was in net salaries and benefits expenses, the result of hiring key executive and support staff positions to support the Company’s expansion initiatives and continued growth. In addition, operating expenses for the year ended December 31, 2019 included increases in occupancy and equipment related to the expansion of facilities; data processing costs related to enhancement of treasury management systems; and professional and legal fees related to implementation of FDICIA and SEC compliance controls and processes.

Non-Interest Income and Expense – three months ended December 31, 2019 and September 30, 2019

During the three months ended December 31, 2019, non-interest income totaled $1.2 million, a decrease of $115 thousand, or 9% from the three-month period ended September 30, 2019. The decrease was primarily the result of lower gains on loan sales compared to the prior quarter.

During the three months ended December 31, 2019, total non-interest expenses increased by $1.4 million, or 17% to $9.8 million compared to $8.4 million for the third quarter. This increase primarily related to completion of expansion initiatives, marketing campaigns and implementation of FDICIA and SEC compliance controls and processes. Salary and benefits expense increased $172 thousand for benefits related to executive hires in 2019.

Please see our detailed Fourth Quarter 2019 Unaudited Summary Financial Statements for more information.

Closing Remarks

“Following our capital raise in 2018, we embarked on a plan to position the Bank for substantive growth. We are proud of our efforts and progress in 2019 and believe we are well positioned to continue executing that plan,” Shelton concluded.

About California BanCorp

California BanCorp, the parent company for California Bank of Commerce, offers a broad range of commercial banking services to closely held businesses and professionals located throughout Northern California. The stock trades on the OTCQX marketplace under the symbol CALB (formerly CABC). For more information on California BanCorp, call us at (510) 457-3751, or visit us at www.californiabankofcommerce.com.

California BanCorp

Steven E. Shelton, (510) 457-3751
President and Chief Executive Officer
seshelton@bankcbc.com

Thomas A. Sa, (510) 457-3775
Senior Executive Vice President
Chief Financial Officer and
Chief Operating Officer
tsa@bankcbc.com

 

Forward-Looking Information

Statements in this news release regarding expectations and beliefs about future financial performance and financial condition, as well as trends in the Company’s business and markets are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” The forward-looking statements in this news release are based on current information and on assumptions that the Company makes about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond the Company’s control. As a result of those risks and uncertainties, the Company’s actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause the Company to make changes to future plans. Those risks and uncertainties include, but are not limited to, the risk of incurring loan losses, which is an inherent risk of the banking business; the risk that the Company will not be able to continue its internal growth rate; the risk that the United States economy will experience slowed growth or recession or will be adversely affected by domestic or international economic conditions and risks associated with the Federal Reserve Board taking actions with respect to interest rates, any of which could adversely affect, among other things, the values of real estate collateral supporting many of the Company’s loans, interest income and interest rate margins and, therefore, the Company’s future operating results; risks associated with changes in income tax laws and regulations; and risks associated with seeking new client relationships and maintaining existing client relationships. Also, the Company’s actual financial results in the future may differ from those currently expected or previously reported due to additional risks and uncertainties of which the Company is not currently aware or does not currently view as, but in the future may become, material to its business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of today’s date, or to make predictions based solely on historical financial performance. The Company disclaims any obligation to update forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise, except as may be required by law.

 

Source: California BanCorp

 

California BanCorp Financial Data as of December 31, 2019 (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ Thousands)

 

For the three months ended

 

Change %

 

Year ended

 

Change %

 

 

 

Income Statement

 

12/31/2019

 

9/30/2019

 

12/31/2018

 

QoQ

 

YoY

 

12/31/2019

 

12/31/2018

 

YTDoYTD

 

 

 

Interest and fees on loans

 

$

  12,132

 

 

$

 12,087

 

 

$

  10,120

 

 

 

0

%

 

 

20

%

 

$

  46,588

 

  

$

38,443

 

 

21

%

 

 

 

Other interest income

 

 

  673

 

 

 

  471

 

 

 

  913

 

 

 

43

%

 

 

(26

%)

 

 

  2,490

 

    

2,496

 

 

(0

%)

 

 

 

Total interest income

 

 

  12,805

 

 

 

  12,557

 

 

 

  11,033

 

 

 

2

%

 

 

16

%

 

 

  49,078

 

 

 

  40,939

 

 

20

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

  2,096

 

 

 

  1,929

 

 

 

  1,396

 

 

 

9

%

 

 

50

%

 

 

  7,209

 

 

 

  4,461

 

 

62

%

 

 

 

Interest on borrowings and subordinated debentures

 

 

  125

 

 

 

  196

 

 

 

  78

 

 

 

(36

%)

 

 

61

%

 

 

  931

 

 

 

  645

 

 

44

%

 

 

 

Total interest expense

 

 

  2,221

 

 

 

  2,124

 

 

 

  1,474

 

 

 

5

%

 

 

51

%

 

 

  8,140

 

 

 

  5,106

 

 

59

%

 

 

 

Net interest income*

 

 

  10,584

 

 

 

   10,433

 

 

 

  9,559

 

 

 

1

%

 

 

11

%

 

 

  40,938

 

 

 

  35,833

 

 

14

%

 

 

 

Provision for loan loss

 

 

  1,000

 

 

 

  500

 

 

 

  591

 

 

 

100

%

 

 

69

%

 

 

  2,326

 

 

 

  1,436

 

 

62

%

 

 

 

Net interest income after provision

 

 

  9,584

 

 

 

  9,933

 

 

 

  8,968

 

 

 

(4

%)

 

 

7

%

 

 

  38,612

 

 

 

  34,397

 

 

12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and other account fees

 

 

  200

 

 

 

  245

 

 

 

  292

 

 

 

(18

%)

 

 

(32

%)

 

 

  957

 

 

 

  1,059

 

 

(10

%)

 

 

 

Loan related fees

 

 

  652

 

 

 

  517

 

 

 

  291

 

 

 

26

%

 

 

124

%

 

 

  2,046

 

 

 

  1,441

 

 

42

%

 

 

 

Net gains on securities sales

 

 

  –

 

 

 

  –

 

 

 

  97

 

 

 

0

%

 

 

(100

%)

 

 

  –

 

 

 

  97

 

 

(100

%)

 

 

 

Net gains on loan sales

 

 

  17

 

 

 

  212

 

 

 

  135

 

 

 

(92

%)

 

 

(87

%)

 

 

  253

 

 

 

  418

 

 

(39

%)

 

 

 

Other

 

 

  277

 

 

 

  287

 

 

 

  47

 

 

 

(3

%)

 

N/A

 

 

  992

 

 

 

  701

 

 

42

%

 

 

 

Total non-interest income*

 

 

  1,146

 

 

 

  1,261

 

 

 

   862

 

 

 

(9

%)

 

 

33

%

 

 

  4,248

 

 

 

  3,716

 

 

14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

  5,769

 

 

 

  5,597

 

 

 

  4,052

 

 

 

3

%

 

 

42

%

 

 

  20,674

 

 

 

  15,573

 

 

33

%

 

 

 

Occupancy and equipment expenses

 

 

  1,160

 

 

 

  826

 

 

 

  773

 

 

 

40

%

 

 

50

%

 

 

  3,502

 

 

 

  2,918

 

 

20

%

 

 

 

Data processing, internet and software

 

 

  521

 

 

 

  524

 

 

 

  424

 

 

 

(1

%)

 

 

23

%

 

 

  1,883

 

 

 

  1,539

 

 

22

%

 

 

 

Professional and legal

 

 

  764

 

 

 

  355

 

 

 

  437

 

 

 

115

%

 

 

75

%

 

 

  2,383

 

 

 

  1,123

 

 

112

%

 

 

 

Other operating expenses

 

 

  1,611

 

 

 

  1,097

 

 

 

  1,405

 

 

 

47

%

 

 

15

%

 

 

  4,781

 

 

 

  5,218

 

 

(8

%)

 

 

 

Total operating expenses

 

 

  9,825

 

 

 

  8,399

 

 

 

  7,091

 

 

 

17

%

 

 

39

%

 

 

  33,223

 

 

 

  26,371

 

 

26

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income before taxes

 

 

  905

 

 

 

  2,795

 

 

 

  2,739

 

 

 

(68

%)

 

 

(67

%)

 

 

  9,637

 

 

 

  11,742

 

 

(18

%)

 

 

 

Income taxes

 

 

  327

 

 

 

  791

 

 

 

  632

 

 

 

(59

%)

 

 

(48

%)

 

 

  2,636

 

 

 

  3,029

 

 

(13

%)

 

 

 

Net income

 

$

  578

 

 

$

  2,004

 

 

$

  2,107

 

 

 

(71

%)

 

 

(73

%)

 

$

  7,001

 

 

$

  8,713

 

 

(20

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*Revenue (net interest income + non-interest income)

 

 

  11,730

 

 

 

  11,694

 

 

 

  10,421

 

 

 

0

%

 

 

13

%

 

 

  45,186

 

 

 

  39,549

 

 

14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

  0.07

 

 

$

  0.25

 

 

$

  0.26

 

 

 

(71

%)

 

 

(73

%)

 

$

  0.87

 

 

$

  1.22

 

 

(29

%)

 

 

 

Diluted earnings per share

 

$

  0.07

 

 

$

  0.25

 

 

$

  0.26

 

 

 

(71

%)

 

 

(73

%)

 

$

  0.86

 

 

$

  1.19

 

 

(28

%)

 

 

 

Average shares outstanding

 

 

  8,074,285

 

 

 

  8,051,729

 

 

 

  7,990,089

 

 

 

 

 

 

 

  8,048,793

 

 

 

  7,120,986

 

 

 

 

 

 

Average diluted shares

 

 

  8,162,585

 

 

 

  8,135,337

 

 

 

  8,103,041

 

 

 

 

 

 

 

  8,132,093

 

 

 

  7,317,611

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

Change $

 

Change %

 

 

 

Average Balance Sheet Items

 

12/31/2019

 

9/30/2019

 

12/31/2018

 

QoQ

 

YoY

 

QoQ

 

YoY

 

 

 

 

 

Total Assets

 

$

  1,156,611

 

 

$

  1,063,923

 

 

$

  982,992

 

 

$

   92,688

 

 

$

  173,619

 

 

 

9

%

 

 

18

%

 

 

 

 

 

Total Loans

 

 

  937,973

 

 

 

  917,194

 

 

 

  784,765

 

 

 

  20,779

 

 

 

  153,208

 

 

 

2

%

 

 

20

%

 

 

 

 

 

Investments

 

 

  32,646

 

 

 

  36,902

 

 

 

  52,836

 

 

 

  (4,256

)

 

 

  (20,190

)

 

 

-12

%

 

 

-38

%

 

 

 

 

 

Earning Assets

 

 

  1,077,708

 

 

 

  987,286

 

 

 

  926,331

 

 

 

  90,422

 

 

 

  151,377

 

 

 

9

%

 

 

16

%

 

 

 

 

 

Non-Interest Bearing Deposits

 

 

  382,426

 

 

 

  337,409

 

 

 

  358,016

 

 

 

  45,017

 

 

 

  24,410

 

 

 

13

%

 

 

7

%

 

 

 

 

 

Core Deposits

 

 

  865,686

 

 

 

  754,403

 

 

 

  760,220

 

 

 

  111,284

 

 

 

  105,466

 

 

 

15

%

 

 

14

%

 

 

 

 

 

Total Deposits

 

 

  994,122

 

 

 

  892,079

 

 

 

  854,165

 

 

 

  102,043

 

 

 

  139,957

 

 

 

11

%

 

 

16

%

 

 

 

 

 

Borrowings

 

 

  14,976

 

 

 

  27,065

 

 

 

  5,000

 

 

 

  (12,089

)

 

 

  9,976

 

 

 

-45

%

 

 

200

%

 

 

 

 

 

Tangible Common Equity

 

 

  122,684

 

 

 

  120,833

 

 

 

  112,450

 

 

 

  1,851

 

 

 

  10,234

 

 

 

2

%

 

 

9

%

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended

 

Change

 

 

 

 

 

 

 

 

 

 

 

Average Balance Sheet Items

 

12/31/2019

 

12/31/2018

 

$

 

%

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

  1,064,452

 

 

$

  929,028

 

 

$

  135,424

 

 

 

15

%

 

 

 

 

 

 

 

 

 

 

 

Total Loans

 

 

  903,923

 

 

 

  755,659

 

 

 

  148,264

 

 

 

20

%

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

  38,197

 

 

 

  23,378

 

 

 

  14,819

 

 

 

63

%

 

 

 

 

 

 

 

 

 

 

 

Earning Assets

 

 

  992,679

 

 

 

  876,288

 

 

 

  116,391

 

 

 

13

%

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Bearing Deposits

 

 

  342,720

 

 

 

  333,075

 

 

 

  9,645

 

 

 

3

%

 

 

 

 

 

 

 

 

 

 

 

Core Deposits

 

 

  778,916

 

 

 

  711,928

 

 

 

  66,988

 

 

 

9

%

 

 

 

 

 

 

 

 

 

 

 

Total Deposits

 

 

  893,893

 

 

 

  814,930

 

 

 

  78,963

 

 

 

10

%

 

 

 

 

 

 

 

 

 

 

 

Borrowings

 

 

  29,717

 

 

 

  12,051

 

 

 

  17,666

 

 

 

147

%

 

 

 

 

 

 

 

 

 

 

 

Tangible Common Equity

 

 

  119,176

 

 

 

  92,963

 

 

 

  26,213

 

 

 

28

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At the periods ended

 

Change $

 

Change %

 

 

 

 

 

Balance Sheet

 

12/31/2019

 

9/30/2019

 

12/31/2018

 

QoQ

 

YoY

 

QoQ

 

YoY

 

 

 

 

 

Cash and equivalents

 

$

  114,342

 

 

$

  67,660

 

 

$

  78,705

 

 

$

  46,682

 

 

$

  35,637

 

 

 

69

%

 

 

45

%

 

 

 

 

 

Investment securities

 

 

  28,555

 

 

 

  36,260

 

 

 

  43,415

 

 

 

  (7,705

)

 

 

  (14,860

)

 

 

-21

%

 

 

-34

%

 

 

 

 

 

Other investments

 

 

  4,402

 

 

 

  4,402

 

 

 

  3,536

 

 

 

  –

 

 

 

  866

 

 

 

0

%

 

 

24

%

 

 

 

 

 

Commercial loans

 

 

  389,746

 

 

 

  402,303

 

 

 

  341,184

 

 

 

  (12,557

)

 

 

  48,562

 

 

 

-3

%

 

 

14

%

 

 

 

 

 

CRE loans

 

 

  502,929

 

 

 

  484,606

 

 

 

  451,851

 

 

 

  18,323

 

 

 

  51,078

 

 

 

4

%

 

 

11

%

 

 

 

 

 

Construction and land loans

 

 

  42,519

 

 

 

  32,547

 

 

 

  37,344

 

 

 

  9,972

 

 

 

  5,175

 

 

 

31

%

 

 

14

%

 

 

 

 

 

Other loans

 

 

  14,458

 

 

 

  13,822

 

 

 

  14,349

 

 

 

  636

 

 

 

  109

 

 

 

5

%

 

 

1

%

 

 

 

 

 

Loans

 

 

  949,652

 

 

 

  933,278

 

 

 

  844,728

 

 

 

  16,374

 

 

 

  104,924

 

 

 

2

%

 

 

12

%

 

 

 

 

 

Net deferred costs

 

 

  2,555

 

 

 

   2,392

 

 

 

  2,203

 

 

 

  163

 

 

 

  352

 

 

 

7

%

 

 

16

%

 

 

 

 

 

Allowance for loan losses

 

 

  11,075

 

 

 

  10,413

 

 

 

  10,800

 

 

 

  662

 

 

 

  275

 

 

 

6

%

 

 

3

%

 

 

 

 

 

Net loans

 

 

  941,132

 

 

 

  925,257

 

 

 

  836,131

 

 

 

  15,875

 

 

 

  105,001

 

 

 

2

%

 

 

13

%

 

 

 

 

 

Premises and equipment, net

 

 

  3,668

 

 

 

  1,917

 

 

 

  2,076

 

 

 

  1,751

 

 

 

  1,592

 

 

 

91

%

 

 

77

%

 

 

 

 

 

Bank owned life insurance

 

 

  22,316

 

 

 

  22,156

 

 

 

  17,806

 

 

 

  160

 

 

 

  4,510

 

 

 

1

%

 

 

25

%

 

 

 

 

 

Deferred income taxes, net

 

 

  6,173

 

 

 

  5,247

 

 

 

  5,803

 

 

 

  926

 

 

 

  370

 

 

 

18

%

 

 

6

%

 

 

 

 

 

Core Deposit Intangible

 

 

  264

 

 

 

  278

 

 

 

  286

 

 

 

  (14

)

 

 

  (22

)

 

 

-5

%

 

 

-8

%

 

 

 

 

 

Goodwill

 

 

  7,350

 

 

 

  7,350

 

 

 

  7,350

 

 

 

  –

 

 

 

  –

 

 

 

0

%

 

 

0

%

 

 

 

 

 

Other assets and interest receivable

 

 

  23,832

 

 

 

  24,082

 

 

 

  10,564

 

 

 

  (250

)

 

 

  13,268

 

 

 

-1

%

 

 

126

%

 

 

 

 

 

Total assets

 

$

  1,152,034

 

 

$

  1,094,609

 

 

$

  1,005,672

 

 

$

  57,425

 

 

$

  146,362

 

 

 

5

%

 

 

15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

$

  387,267

 

 

$

  373,289

 

 

$

  352,402

 

 

$

  13,978

 

 

$

  34,865

 

 

 

4

%

 

 

10

%

 

 

 

 

 

Interest bearing demand deposits

 

 

  25,178

 

 

 

  22,896

 

 

 

  32,650

 

 

 

  2,282

 

 

 

  (7,472

)

 

 

10

%

 

 

-23

%

 

 

 

 

 

Money market & savings deposits

 

 

  455,436

 

 

 

  398,242

 

 

 

  392,290

 

 

 

  57,194

 

 

 

  63,146

 

 

 

14

%

 

 

16

%

 

 

 

 

 

Time deposits

 

 

  120,355

 

 

 

  129,483

 

 

 

  96,912

 

 

 

  (9,128

)

 

 

  23,443

 

 

 

-7

%

 

 

24

%

 

 

 

 

 

Total deposits

 

 

  988,236

 

 

 

  923,910

 

 

 

  874,254

 

 

 

  64,326

 

 

 

  113,982

 

 

 

7

%

 

 

13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

 

 

  10,000

 

 

 

  20,000

 

 

 

  –

 

 

 

  (10,000

)

 

 

  10,000

 

 

 

-50

%

 

 

0

%

 

 

 

 

 

Subordinated debentures, net

 

 

  4,977

 

 

 

  4,973

 

 

 

  4,960

 

 

 

  4

 

 

 

  17

 

 

 

0

%

 

 

0

%

 

 

 

 

 

Other liabilities

 

 

  18,565

 

 

 

  16,724

 

 

 

  5,379

 

 

 

  1,841

 

 

 

  13,186

 

 

 

11

%

 

N/A

 

 

 

 

 

Total liabilities

 

 

  1,021,778

 

 

 

  965,607

 

 

 

  884,593

 

 

 

  56,171

 

 

 

  137,185

 

 

 

6

%

 

 

16

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

  106,427

 

 

 

  105,711

 

 

 

  104,563

 

 

 

  716

 

 

 

  1,864

 

 

 

1

%

 

 

2

%

 

 

 

 

 

Retained earnings

 

 

  23,519

 

 

 

  22,937

 

 

 

  16,515

 

 

 

  582

 

 

 

  7,004

 

 

 

3

%

 

 

42

%

 

 

 

 

 

Other comprehensive income

 

 

  310

 

 

 

  354

 

 

 

  1

 

 

 

  (44

)

 

 

  309

 

 

 

-12

%

 

N/A

 

 

 

 

 

Total shareholder’s equity

 

 

  130,256

 

 

 

  129,002

 

 

 

  121,079

 

 

 

  1,254

 

 

 

  9,177

 

 

 

1

%

 

 

8

%

 

 

 

 

 

Total liabilities and equity

 

$

  1,152,034

 

 

$

  1,094,609

 

 

$

  1,005,672

 

 

$

  57,425

 

 

$

  146,362

 

 

 

5

%

 

 

15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per common share

 

$

  15.16

 

 

$

  15.08

 

 

$

  14.20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total shares outstanding

 

 

  8,092,966

 

 

 

  8,052,549

 

 

 

  7,993,908

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core relationship deposits

 

 

  867,881

 

 

 

  772,811

 

 

 

  779,783

 

 

 

  95,070

 

 

 

  88,098

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

Year ended

 

 

 

 

 

 

 

 

 

Performance Ratios

 

12/31/2019

 

9/30/2019

 

12/31/2018

 

12/31/2019

 

12/31/2018

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

0.20

%

 

 

0.75

%

 

 

0.85

%

 

 

0.66

%

 

 

0.94

%

 

 

 

 

 

 

 

 

 

Return on average tangible common equity

 

 

1.87

%

 

 

6.58

%

 

 

7.43

%

 

 

5.87

%

 

 

9.37

%

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

83.76

%

 

 

71.82

%

 

 

68.05

%

 

 

73.52

%

 

 

66.68

%

 

 

 

 

 

 

 

 

 

Net Interest Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

3.90

%

 

 

4.19

%

 

 

4.09

%

 

 

4.12

%

 

 

4.09

%

 

 

 

 

 

 

 

 

 

Average earning assets yield

 

 

4.72

%

 

 

5.05

%

 

 

4.73

%

 

 

4.94

%

 

 

4.67

%

 

 

 

 

 

 

 

 

 

Average investment yield

 

 

2.85

%

 

 

3.12

%

 

 

3.08

%

 

 

3.08

%

 

 

2.72

%

 

 

 

 

 

 

 

 

 

Average loan yield

 

 

5.26

%

 

 

5.30

%

 

 

5.12

%

 

 

5.30

%

 

 

5.25

%

 

 

 

 

 

 

 

 

 

Average total deposit rate

 

 

0.84

%

 

 

0.86

%

 

 

0.65

%

 

 

0.80

%

 

 

0.55

%

 

 

 

 

 

 

 

 

 

Average borrowing rate

 

 

3.32

%

 

 

2.87

%

 

 

6.17

%

 

 

3.13

%

 

 

5.37

%

 

 

 

 

 

 

 

 

 

Other Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total loans to total deposits

 

 

94.4

%

 

 

102.8

%

 

 

91.9

%

 

 

101.1

%

 

 

92.7

%

 

 

 

 

 

 

 

 

 

Average C&I loans to total loans

 

 

41.8

%

 

 

41.7

%

 

 

40.9

%

 

 

41.5

%

 

 

43.0

%

 

 

 

 

 

 

 

 

 

Average non-interest bearing deposits to total deposits

 

 

38.5

%

 

 

37.8

%

 

 

41.9

%

 

 

38.3

%

 

 

40.9

%

 

 

 

 

 

 

 

 

 

Average core deposits to total deposits

 

 

87.1

%

 

 

84.6

%

 

 

89.0

%

 

 

87.1

%

 

 

87.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At the periods ended

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios – Bank

 

12/31/2019

 

9/30/2019

 

12/31/2018

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage ratio

 

 

10.44

%

 

 

11.22

%

 

 

11.31

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity tier 1 capital ratio

 

 

10.38

%

 

 

10.68

%

 

 

10.94

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 risk-based capital ratio

 

 

10.38

%

 

 

10.68

%

 

 

10.94

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Total risk-based capital ratio

 

 

11.79

%

 

 

12.09

%

 

 

12.52

%

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At the periods ended

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Performing Assets

 

12/31/2019

 

9/30/2019

 

12/31/2018

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Accrual Loans

 

$

  2,753

 

 

$

  4,675

 

 

$

  4,463

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructured Loans

 

 

  –

 

 

 

  –

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing loans (NPL)

 

 

  2,753

 

 

 

  4,675

 

 

 

  4,463

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Real Estate Owned

 

 

  –

 

 

 

  –

 

 

 

  –

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing assets (NPA)

 

$

  2,753

 

 

$

  4,675

 

 

$

  4,463

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructured Loans Performing

 

 

  646

 

 

 

  697

 

 

 

  930

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarterly Net (Charge-offs)/Recoveries

 

$

  338

 

 

$

  1,588

 

 

$

  9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NPAs / Assets %

 

 

0.24

%

 

 

0.43

%

 

 

0.44

%

 

 

 

 

 

 

 

 

 

 

 

 

 

NPAs / Loans and OREO %

 

 

0.29

%

 

 

0.50

%

 

 

0.53

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan Loss Reserves / Loans (%)

 

 

1.17

%

 

 

1.12

%

 

 

1.28

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan Loss Reserves / NPLs (%)

 

 

402

%

 

 

223

%

 

 

242

%