Oakland, Calif., July 29, 2019 – California BanCorp (the “Company”) (OTCQX-CALB), the parent company of California Bank of Commerce (the “Bank”), today announced its financial results for the second quarter and six months ended June 30, 2019.

Net income was $2.55 million for the second quarter of 2019, representing an increase of $682 thousand or 36% compared to $1.87 million for the first quarter of 2019 and an increase of $391 thousand or 18% compared to $2.16 million in the second quarter of 2018. For the six months ended June 30, 2019, net income was $4.42 million representing an increase of $326 thousand or 8% compared to $4.09 million for the same period in 2018.

Per share earnings of $0.31 for the second quarter of 2019 compared to $0.23 for the first quarter of 2019 and $0.32 in the second quarter of 2018. For the six months ended June 30, 2019, per share earnings of $0.54 compared to $0.60 for the same period in 2018. Per share earnings reflect the impact of the Company’s capital raise completed in August of 2018 which increased shares outstanding by 1.18 million or 18%.

Financial Highlights

Income Statement

Three months ended June 30, 2019 compared to March 31, 2019

  • Net income increased $682 thousand to $2.6 million.
  • Revenue increased $360 thousand, or 3% to $11.1 million.
  • Non-interest expense decreased by $232 thousand, or 3% to $7.4 million.

Six months ended June 30, 2019 compared to June 30, 2018

  • Net income increased $326 thousand to $4.4 million.
  • Revenue increased $2.8 million, or 15% to $21.8 million.
  • Non-interest expense increased by $1.9 million, or 15% to $15.0 million.

Financial Position

June 30, 2019 compared to June 30, 2018

  • Total assets increased by $148 million, or 16% to $1.06 billion.
  • Total loans increased by $159 million, or 21% to $912 million.
  • Total deposits increased by $82 million, or 10% to $882 million.
  • Capital ratios remain healthy with a tier-one leverage ratio of 11.22%, tangible common equity ratio of 10.71% and total risk-based capital ratio of 12.26%.

“In the second quarter we achieved record quarterly earnings and year-over-year loan growth of $159.0 million or 21%,” stated Steve Shelton, President and Chief Executive Officer. “The second quarter results reflect the continued successful efforts of our entire team to capitalize on building quality, long-term relationships in healthy and vibrant Northern California business communities. Our capital raise in 2018 enabled us to build upon a strong foundation and continue to position our franchise as Northern California’s premier business bank.”

Net Interest Income and Margin – three and six months ended June 30, 2019 and June 30, 2018.

Net interest income for the quarter ended June 30, 2019 was $10.1 million, an increase of $247 thousand or 3% over $9.8 million for the three months ended March 31, 2019, and an increase of $1.5 million or 17% over $8.6 million for the quarter ended June 30, 2018. The increase in net interest income compared to the prior quarter of 2019 and the same period in 2018 was primarily attributable to an increase in interest income driven by the strong increase in average earning assets, specifically growth in average loans, which increased 5% over the prior quarter of 2019 and 20% over the same period in 2018.

The yield on total interest-earning assets increased to 5.07% during the quarter ended June 30, 2019, compared to 4.98% during the prior quarter and compared to 4.68% during the same period in 2018, as the result of a shift in the mix toward loans and increases in the prime rate. Average loans represented 93% of average earning assets in the quarter ended June 30, 2019, up from 92% in the prior quarter and 89% in the same period in 2018.

The Company’s net interest margin for the quarter was 4.18% compared to 4.26% for the prior quarter in 2019 and 4.10% for the same period in 2018. The decrease in margin compared to the prior quarter was primarily the result of an increase in the cost of funds related to higher wholesale borrowing activity in the period. The increase in margin compared to the same period last year was the result of an increase in the yield of average earning assets offset, in part, by an increase in the average cost of funds.

Non-Interest Income – three and six months ended June 30, 2019 and June 30, 2018.

The Company’s non-interest income for the quarters ended June 30, 2019, March 31, 2019, and June 30, 2018 was $976 thousand, $863 thousand and $888 thousand, respectively.

The increases in non-interest income of $113 thousand during the second quarter of 2019 compared to the first quarter of 2019 and $88 thousand compared to the same period last year was primarily due to increases in client deposit service charges and a loan termination fee.

For the six months ended June 30, 2019, non-interest income of $1.8 million represented a slight decrease from $1.9 million for the first six months of 2018. The decrease was primarily due to a decrease in gains on sale of loans partially offset by increases in deposit service charges and loan related fees.

Non-Interest Expense – three and six months ended June 30, 2019 and June 30, 2018.

The Company’s non-interest expense for the quarters ended June 30, 2019, March 31, 2019, and June 30, 2018 was $7.4 million, $7.6 million and $6.6 million, respectively.

For the quarter ended June 30, 2019 the decrease in non-interest expense of $232 thousand compared to the quarter ended March 31, 2019, was primarily due to a decrease in nonrecurring expenses associated with public company readiness and FDICIA implementation, and lower recurring legal and professional fees, partially offset by an increase in salaries and benefits related to hiring in support of growth. Compared to the same period in 2018, non-interest expense increased $810 thousand, primarily due to an increase in salary and benefits related to hiring to support growth.

Non-interest expenses of $15.0 million for the six months ended June 30, 2019 compared to $13.1 million for the first six months of 2018. The increase of $1.9 million was due primarily to an increase in salaries and benefits related to hiring to support the continued growth of the Bank and nonrecurring costs related to preparing for public registration and FDICIA implementation.

Balance Sheet

Total assets reached a record $1.06 billion as of June 30, 2019, up 16%, or $148 million compared to $911 million at June 30, 2018. Net loan growth of $157 million outpaced net deposit growth of $82 million as the Bank undertook a strategy in 2018 to reduce higher-cost wholesale deposits in its funding mix.

Total loans increased by $159 million, or 21% to $912 million at June 30, 2019, from $753 million at June 30, 2018, with the largest categories of growth within the loan portfolio in relationship-based commercial real estate loans at $119 million and commercial and industrial loans at $58 million. In the second quarter of 2019, total loans increased by $23 million from $889 million at March 31, 2019, with an increase in commercial and industrial loans of $17 million and an increase in commercial real estate loans of $14 million offset by a reduction in construction and other lending of $8 million.

Total deposits increased by $82 million, or 10% to $882 million at June 30, 2019, from $800 million at June 30, 2018, with growth primarily concentrated in core commercial deposits, which increased by $55 million, or 8% to $749 million. Non-interest bearing deposits, primarily commercial business operating accounts, represented 37.3% of total deposits at June 30, 2019, compared to 40.8% at June 30, 2018, primarily indicative of lower levels of operating cash from some commercial clients, as they deployed funds into commercial activity.

Credit Quality

Non-performing assets (“NPAs”) to total assets of 0.63% at June 30, 2019, compared to 0.40% at March 31, 2019 and 0.28% at June 30, 2018, with non-performing loans of $6.6 million, $4.2 million and $2.5 million, respectively, on those dates. The increase in NPAs at June 30, 2019 compared to the prior quarter related to one commercial loan that was placed on nonaccrual in the second quarter of 2019.

The allowance for loan losses increased by $1.7 million, or 17% to $11.5 million, or 1.26% of total loans at June 30, 2019, compared to $11.3 million at March 31, 2019 and $9.8 million, or 1.30% of total loans at June 30, 2018.

Shareholder’s Equity

Total shareholder’s equity increased by $35.5 million, or 39% to $126.6 million at June 30, 2019, from $91.2 million at June 30, 2018. The $35.5 million increase includes earnings during the twelve-month period totaling $9.0 million, proceeds from the exercise of stock options totaling $2.9 million and $23.6 million in net proceeds from the Company’s successful private placement of common stock during the third quarter of 2018. Tangible book value per common share increased by 19% between the periods, to $14.80 at June 30, 2019, from $12.49 at June 30, 2018.

“We are excited with the momentum of the Bank represented in this quarter’s operating results as we look to capitalize on recent investments and on emerging opportunities in our existing markets,” stated Thomas A. Sa, Senior Executive Vice President, Chief Financial Officer and Chief Operating Officer. “The capital raise in 2018 created significant capacity for the Bank and we are pleased to be deploying that capital at the pace represented in our loan growth over the past year. The capital also enabled the formation of a Sacramento, California initiative, that we expect will allow the Bank to expand and diversify our business in Northern California in the years ahead.”

 

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.

 

Contacts

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 June 30, 2019 (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ Thousands)

 

For the three months ended

 

Change %

 

For the six months ended

 

Change %

Income Statement

 

6/30/2019

 

3/31/2019

 

6/30/2018

 

QoQ

 

YoY

 

6/30/2019

 

6/30/2018

 

YTDoYTD

Interest and fees on loans

 

$

11,743

 

 

$

10,954

 

 

$

9,384

 

 

7

%

 

25

%

 

$

22,697

 

 

$

18,483

 

 

23

%

Other interest income

 

 

478

 

 

 

540

 

 

 

424

 

 

(11

%)

 

13

%

 

 

1,019

 

 

 

827

 

 

23

%

Total interest income

 

 

12,221

 

 

 

11,494

 

 

 

9,808

 

 

6

%

 

25

%

 

 

23,715

 

 

 

19,310

 

 

23

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

1,641

 

 

 

1,543

 

 

 

997

 

 

6

%

 

65

%

 

 

3,184

 

 

 

1,860

 

 

71

%

Interest on borrowings and subordinated debentures

 

 

496

 

 

 

114

 

 

 

209

 

 

333

%

 

137

%

 

 

610

 

 

 

416

 

 

47

%

Total interest expense

 

 

2,137

 

 

 

1,657

 

 

 

1,206

 

 

29

%

 

77

%

 

 

3,794

 

 

 

2,276

 

 

67

%

Net interest income*

 

 

  10,084

 

 

 

  9,837

 

 

 

  8,602

 

 

3

%

 

17

%

 

 

  19,921

 

 

 

  17,034

 

 

17

%

Provision for loan loss

 

 

246

 

 

 

581

 

 

 

191

 

 

(58

%)

 

29

%

 

 

826

 

 

 

450

 

 

84

%

Net interest income after provision

 

 

9,839

 

 

 

9,256

 

 

 

8,411

 

 

6

%

 

17

%

 

 

19,095

 

 

 

16,584

 

 

15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and other account fees

 

 

312

 

 

 

300

 

 

 

306

 

 

4

%

 

2

%

 

 

612

 

 

 

570

 

 

7

%

Loan related fees

 

 

508

 

 

 

370

 

 

 

320

 

 

37

%

 

59

%

 

 

877

 

 

 

743

 

 

18

%

Net gains on securities sales

 

 

 

 

 

 

 

 

 

 

0

%

 

0

%

 

 

 

 

 

 

 

0

%

Net gains on loan sales

 

 

 

 

 

23

 

 

 

108

 

 

(100

%)

 

(100

%)

 

 

23

 

 

 

283

 

 

(92

%)

Other

 

 

157

 

 

 

170

 

 

 

154

 

 

(8

%)

 

2

%

 

 

327

 

 

 

332

 

 

(2

%)

Total non-interest income*

 

 

  976

 

 

 

  863

 

 

 

  888

 

 

13

%

 

10

%

 

 

  1,839

 

 

 

  1,928

 

 

(5

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

4,823

 

 

 

4,515

 

 

 

3,950

 

 

7

%

 

22

%

 

 

9,338

 

 

 

7,829

 

 

19

%

Occupancy and equipment expenses

 

 

771

 

 

 

745

 

 

 

746

 

 

3

%

 

3

%

 

 

1,517

 

 

 

1,410

 

 

8

%

Data processing, internet and software

 

 

418

 

 

 

419

 

 

 

357

 

 

(0

%)

 

17

%

 

 

837

 

 

 

742

 

 

13

%

Professional and legal

 

 

290

 

 

 

358

 

 

 

168

 

 

(19

%)

 

73

%

 

 

648

 

 

 

345

 

 

88

%

Strategic initiatives

 

 

70

 

 

 

648

 

 

 

212

 

 

(89

%)

 

(67

%)

 

 

718

 

 

 

514

 

 

40

%

Other operating expenses

 

 

1,010

 

 

 

930

 

 

 

1,140

 

 

9

%

 

(11

%)

 

 

1,940

 

 

 

2,220

 

 

(13

%)

Total operating expenses

 

 

  7,383

 

 

 

  7,615

 

 

 

  6,573

 

 

(3

%)

 

12

%

 

 

  14,998

 

 

 

  13,060

 

 

15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income before taxes

 

 

3,432

 

 

 

2,504

 

 

 

2,726

 

 

37

%

 

26

%

 

 

5,936

 

 

 

5,452

 

 

9

%

Income taxes

 

 

882

 

 

 

636

 

 

 

567

 

 

39

%

 

56

%

 

 

1,518

 

 

 

1,360

 

 

12

%

Net income

 

$

   2,550

 

 

$

   1,868

 

 

$

   2,159

 

 

36

%

 

18

%

 

$

   4,418

 

 

$

   4,092

 

 

8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

  11,060

 

 

 

  10,700

 

 

 

  9,490

 

 

3

%

 

17

%

 

 

  21,761

 

 

 

  18,962

 

 

15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

   0.32

 

 

$

   0.23

 

 

$

   0.33

 

 

36

%

 

(3

%)

 

$

   0.55

 

 

$

   0.63

 

 

(13

%)

Diluted earnings per share

 

$

   0.31

 

 

$

   0.23

 

 

$

   0.32

 

 

36

%

 

(1

%)

 

$

   0.54

 

 

$

   0.60

 

 

(9

%)

Average shares outstanding

 

 

8,046,635

 

 

 

8,020,456

 

 

 

6,604,562

 

 

 

 

 

 

 

8,033,613

 

 

 

6,557,046

 

 

 

Average diluted shares

 

 

8,124,165

 

 

 

8,102,543

 

 

 

6,843,821

 

 

 

 

 

 

 

8,113,184

 

 

 

6,831,442

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CORE EARNINGS SUMMARY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

Change %

 

For the six months ended

 

Change %

Nonrecurring expense

 

6/30/2019

 

3/31/2019

 

6/30/2018

 

QoQ

 

YoY

 

6/30/2019

 

6/30/2018

 

YTDoYTD

Strategic initiatives

 

$

70

 

 

$

648

 

 

$

598

 

 

 

 

 

 

$

718

 

 

$

900

 

 

 

Total Nonrecurring expense

 

 

70

 

 

 

648

 

 

 

598

 

 

 

 

 

 

 

718

 

 

 

900

 

 

 

                                 

Income taxes

 

 

21

 

 

 

191

 

 

 

176

 

 

 

 

 

 

 

212

 

 

 

266

 

 

 

                                 
                                 

Nonrecurring expense (net of tax)

 

 

  49

 

 

 

  457

 

 

 

  422

 

 

 

 

 

 

 

  506

 

 

 

  635

 

 

 

                                 

Core Net income

 

$

   2,599

 

 

$

   2,325

 

 

$

   2,581

 

 

12

%

 

1

%

 

$

   4,925

 

 

$

   4,727

 

 

4

%

                                 

Core Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic core earnings per share

 

 

  0.32

 

 

 

  0.29

 

 

 

  0.39

 

 

11

%

 

(17

%)

 

 

  0.61

 

 

 

  0.72

 

 

(15

%)

Diluted core earnings per share

 

 

  0.32

 

 

 

  0.29

 

 

 

  0.38

 

 

11

%

 

(15

%)

 

 

  0.61

 

 

 

  0.69

 

 

(12

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core return on average assets

 

 

1.00

%

 

 

0.95

%

 

 

1.16

%

 

 

 

 

 

 

0.98

%

 

 

1.07

%

 

 

Core return on average tangible common equity

 

 

8.84

%

 

 

8.19

%

 

 

12.58

%

 

 

 

 

 

 

8.52

%

 

 

11.81

%

 

 

                                 

 

 

For the three months ended

 

Change $

 

Change %

 

 

Average Balance Sheet Items

 

6/30/2019

 

3/31/2019

 

6/30/2018

 

QoQ

 

YoY

 

QoQ

 

YoY

 

 

Total Assets

 

 

1,040,185

 

 

 

995,362

 

 

 

894,024

 

 

44,823

 

 

146,161

 

 

 

5

%

 

 

16

%

 

 

Total Loans

 

 

900,183

 

 

 

859,326

 

 

 

749,057

 

 

40,857

 

 

151,126

 

 

 

5

%

 

 

20

%

 

 

Investments

 

 

39,817

 

 

 

42,719

 

 

 

12,165

 

 

(2,902

)

 

27,652

 

 

 

-7

%

 

N/A 

 

 

Earning Assets

 

 

967,796

 

 

 

936,929

 

 

 

840,653

 

 

30,867

 

 

127,143

 

 

 

3

%

 

 

15

%

 

 

Non-Interest Bearing Deposits

 

 

323,337

 

 

 

334,493

 

 

 

317,759

 

 

(11,156

)

 

5,578

 

 

 

-3

%

 

 

2

%

 

 

Core Deposits

 

 

741,289

 

 

 

760,652

 

 

 

665,711

 

 

(19,363

)

 

75,578

 

 

 

-3

%

 

 

11

%

 

 

Total Deposits

 

 

838,103

 

 

 

857,034

 

 

 

775,625

 

 

(18,931

)

 

62,478

 

 

 

-2

%

 

 

8

%

 

 

Borrowings

 

 

66,128

 

 

 

10,781

 

 

 

16,259

 

 

55,347

 

 

49,869

 

 

N/A

 

N/A 

 

 

Tangible Common Equity

 

 

117,969

 

 

 

115,117

 

 

 

82,247

 

 

2,852

 

 

35,722

 

 

 

2

%

 

 

43

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the six months ended

 

Change 

 

 

 

 

 

 

 

 

Average Balance Sheet Items

 

6/30/2019

 

6/30/2018

 

$

 

%

 

 

 

 

 

 

 

 

Total Assets

 

 

1,017,878

 

 

 

886,999

 

 

 

130,879

 

 

15

%

 

 

 

 

 

 

 

 

Total Loans

 

 

879,910

 

 

 

739,472

 

 

 

140,438

 

 

19

%

 

 

 

 

 

 

 

 

Investments

 

 

41,260

 

 

 

12,312

 

 

 

28,948

 

 

235

%

 

 

 

 

 

 

 

 

Earning Assets

 

 

952,491

 

 

 

835,615

 

 

 

116,876

 

 

14

%

 

 

 

 

 

 

 

 

Non-Interest Bearing Deposits

 

 

328,884

 

 

 

311,192

 

 

 

17,692

 

 

6

%

 

 

 

 

 

 

 

 

Core Deposits

 

 

750,917

 

 

 

673,302

 

 

 

77,615

 

 

12

%

 

 

 

 

 

 

 

 

Total Deposits

 

 

847,516

 

 

 

780,646

 

 

 

66,870

 

 

9

%

 

 

 

 

 

 

 

 

Borrowings

 

 

38,608

 

 

 

16,114

 

 

 

22,494

 

 

140

%

 

 

 

 

 

 

 

 

Tangible Common Equity

 

 

116,551

 

 

 

80,718

 

 

 

35,833

 

 

44

%

 

 

 

 

 

 

 

 

                                 
                                 

 

 

At the periods ended

 

Change $

 

Change %

 

 

Balance Sheet

 

6/30/2019

 

3/31/2019

 

6/30/2018

 

QoQ

 

YoY

 

QoQ

 

YoY

 

 

Cash and equivalents

 

 

55,396

 

 

 

61,320

 

 

 

111,202

 

 

(5,924

)

 

(55,806

)

 

 

-10

%

 

 

-50

%

 

 

Investment securities

 

 

38,103

 

 

 

42,008

 

 

 

11,652

 

 

(3,905

)

 

26,451

 

 

 

-9

%

 

N/A 

 

 

Other investments

 

 

4,402

 

 

 

3,536

 

 

 

3,536

 

 

866

 

 

866

 

 

 

24

%

 

 

24

%

 

 

                                 

Commercial loans

 

 

388,131

 

 

 

371,359

 

 

 

329,914

 

 

16,772

 

 

58,217

 

 

 

5

%

 

 

18

%

 

 

CRE loans

 

 

477,094

 

 

 

462,779

 

 

 

357,969

 

 

14,315

 

 

119,125

 

 

 

3

%

 

 

33

%

 

 

Construction and land loans

 

 

30,611

 

 

 

38,764

 

 

 

40,671

 

 

(8,153

)

 

(10,060

)

 

 

-21

%

 

 

-25

%

 

 

Other loans

 

 

16,520

 

 

 

15,800

 

 

 

24,778

 

 

720

 

 

(8,258

)

 

 

5

%

 

 

-33

%

 

 

Loans

 

 

912,356

 

 

 

888,702

 

 

 

753,332

 

 

23,654

 

 

159,024

 

 

 

3

%

 

 

21

%

 

 

Allowance for loan losses

 

 

11,501

 

 

 

11,250

 

 

 

9,800

 

 

251

 

 

1,701

 

 

 

2

%

 

 

17

%

 

 

Net loans

 

 

  900,856

 

 

 

  877,452

 

 

 

  743,532

 

 

  23,403

 

 

  157,324

 

 

 

3

%

 

 

21

%

 

 

                                 

Premises and equipment, net

 

 

1,786

 

 

 

1,942

 

 

 

2,428

 

 

(156

)

 

(642

)

 

 

-8

%

 

 

-26

%

 

 

Bank owned life insurance

 

 

21,994

 

 

 

17,933

 

 

 

16,651

 

 

4,061

 

 

5,343

 

 

 

23

%

 

 

32

%

 

 

Deferred income taxes, net

 

 

5,762

 

 

 

4,804

 

 

 

5,583

 

 

958

 

 

179

 

 

 

20

%

 

 

3

%

 

 

Core Deposit Intangible

 

 

265

 

 

 

276

 

 

 

419

 

 

(10

)

 

(154

)

 

 

-4

%

 

 

-37

%

 

 

Goodwill

 

 

7,350

 

 

 

7,350

 

 

 

7,350

 

 

 

 

 

 

 

0

%

 

 

0

%

 

 

Other assets and interest receivable

 

 

23,534

 

 

 

21,885

 

 

 

9,003

 

 

1,650

 

 

14,531

 

 

 

8

%

 

 

161

%

 

 

Total assets

 

 

  1,059,448

 

 

 

  1,038,506

 

 

 

  911,356

 

 

  20,942

 

 

  148,092

 

 

 

2

%

 

 

16

%

 

 

                                 

Demand deposits

 

 

329,497

 

 

 

335,719

 

 

 

326,556

 

 

(6,222

)

 

2,941

 

 

 

-2

%

 

 

1

%

 

 

Interest bearing demand deposits

 

 

24,279

 

 

 

25,878

 

 

 

28,278

 

 

(1,599

)

 

(3,999

)

 

 

-6

%

 

 

-14

%

 

 

Money market & savings deposits

 

 

395,379

 

 

 

414,734

 

 

 

354,785

 

 

(19,355

)

 

40,594

 

 

 

-5

%

 

 

11

%

 

 

Time deposits

 

 

133,065

 

 

 

94,844

 

 

 

90,174

 

 

38,221

 

 

42,891

 

 

 

40

%

 

 

48

%

 

 

Total deposits

 

 

  882,221

 

 

 

  871,175

 

 

 

  799,793

 

 

  11,046

 

 

  82,428

 

 

 

1

%

 

 

10

%

 

 

                                 

Borrowings

 

 

30,000

 

 

 

25,000

 

 

 

11,500

 

 

5,000

 

 

18,500

 

 

 

20

%

 

 

161

%

 

 

Subordinated debentures, net

 

 

4,969

 

 

 

4,964

 

 

 

4,951

 

 

4

 

 

18

 

 

 

0

%

 

 

0

%

 

 

Other liabilities

 

 

15,618

 

 

 

13,710

 

 

 

3,960

 

 

1,908

 

 

11,658

 

 

 

14

%

 

N/A 

 

 

Total liabilities

 

 

932,807

 

 

 

914,849

 

 

 

820,204

 

 

17,958

 

 

112,603

 

 

 

2

%

 

 

14

%

 

 

                                 

Common stock

 

 

105,356

 

 

 

105,107

 

 

 

79,395

 

 

249

 

 

25,961

 

 

 

0

%

 

 

33

%

 

 

Retained earnings

 

 

20,934

 

 

 

18,383

 

 

 

11,894

 

 

2,551

 

 

9,040

 

 

 

14

%

 

 

76

%

 

 

Other comprehensive income

 

 

351

 

 

 

167

 

 

 

(137

)

 

184

 

 

488

 

 

 

110

%

 

N/A 

 

 

Total shareholder’s equity

 

 

  126,641

 

 

 

  123,657

 

 

 

  91,152

 

 

  2,984

 

 

  35,489

 

 

 

2

%

 

 

39

%

 

 

Total liabilities and equity

 

 

  1,059,448

 

 

 

  1,038,506

 

 

 

  911,356

 

 

  20,942

 

 

  148,092

 

 

 

2

%

 

 

16

%

 

 

                                 

Tangible book value per common share

 

 

14.80

 

 

 

14.43

 

 

 

12.49

 

 

 

 

 

 

 

 

 

 

 

Total shares outstanding

 

 

8,047,212

 

 

 

8,045,399

 

 

 

6,691,664

 

 

 

 

 

 

 

 

 

 

 

                                 

Core relationship deposits

 

 

749,156

 

 

 

778,627

 

 

 

694,165

 

 

(29,471

)

 

54,991

 

 

 

 

 

 

 

                                 
                                 

 

 

For the three months ended

 

For the six months ended

 

 

 

 

 

 

Performance Ratios

 

6/30/2019

 

3/31/2019

 

6/30/2018

 

6/30/2019

 

6/30/2018

 

 

 

 

 

 

Return on average assets

 

 

0.98

%

 

 

0.76

%

 

 

0.97

%

 

0.88

%

 

0.93

%

 

 

 

 

 

 

Return on average tangible common equity

 

 

8.67

%

 

 

6.58

%

 

 

10.53

%

 

7.64

%

 

10.22

%

 

 

 

 

 

 

Efficiency ratio

 

 

66.75

%

 

 

71.17

%

 

 

69.26

%

 

68.92

%

 

68.87

%

 

 

 

 

 

 

                                 

Net Interest Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

4.18

%

 

 

4.26

%

 

 

4.10

%

 

4.22

%

 

4.17

%

 

 

 

 

 

 

Average earning assets yield

 

 

5.07

%

 

 

4.98

%

 

 

4.68

%

 

5.02

%

 

4.66

%

 

 

 

 

 

 

Average investment yield

 

 

3.14

%

 

 

3.14

%

 

 

2.09

%

 

3.14

%

 

2.14

%

 

 

 

 

 

 

Average loan yield

 

 

5.23

%

 

 

5.17

%

 

 

5.03

%

 

5.20

%

 

5.04

%

 

 

 

 

 

 

Average total deposit rate

 

 

0.79

%

 

 

0.73

%

 

 

0.51

%

 

0.76

%

 

0.48

%

 

 

 

 

 

 

Average borrowing rate

 

 

3.01

%

 

 

4.31

%

 

 

5.18

%

 

3.19

%

 

5.19

%

 

 

 

 

 

 

                                 

Other Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total loans to total deposits

 

 

107.4

%

 

 

100.3

%

 

 

95.4

%

 

103.8

%

 

94.7

%

 

 

 

 

 

 

Average C&I loans to total loans

 

 

41.0

%

 

 

41.2

%

 

 

43.9

%

 

40.3

%

 

43.9

%

 

 

 

 

 

 

Average non-interest bearing deposits to total deposits

 

 

38.6

%

 

 

38.6

%

 

 

40.5

%

 

38.8

%

 

39.9

%

 

 

 

 

 

 

Average core deposits to total deposits

 

 

88.4

%

 

 

88.4

%

 

 

87.7

%

 

88.6

%

 

86.2

%

 

 

 

 

 

 

                                 

 

 

At the periods ended

 

 

 

 

 

 

 

 

 

 

Capital Ratios – Bank

 

6/30/2019

 

3/31/2019

 

6/30/2018

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage ratio

 

 

11.22

%

 

 

11.41

%

 

 

10.56

%

 

 

 

 

 

 

 

 

 

 

Common equity tier 1 capital ratio

 

 

10.71

%

 

 

10.81

%

 

 

10.65

%

 

 

 

 

 

 

 

 

 

 

Tier 1 risk-based capital ratio

 

 

10.71

%

 

 

10.81

%

 

 

10.65

%

 

 

 

 

 

 

 

 

 

 

Total risk-based capital ratio

 

 

12.26

%

 

 

12.38

%

 

 

12.35

%

 

 

 

 

 

 

 

 

 

 

                                 

 

 

At the periods ended

 

 

 

 

 

 

 

 

 

 

Non-Performing Assets

 

6/30/2019

 

3/31/2019

 

6/30/2018

 

 

 

 

 

 

 

 

 

 

Non-Accrual Loans

 

$

6,647

 

 

$

4,185

 

 

$

2,525

 

 

 

 

 

 

 

 

 

 

 

Restructured Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing loans (NPL)

 

 

6,647

 

 

 

4,185

 

 

 

2,525

 

 

 

 

 

 

 

 

 

 

 

Other Real Estate Owned

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing assets (NPA)

 

$

6,647

 

 

$

4,185

 

 

$

2,525

 

 

 

 

 

 

 

 

 

 

 

                                 

Restructured Loans Performing

 

 

1,528

 

 

 

1,586

 

 

 

1,009

 

 

 

 

 

 

 

 

 

 

 

                                 

Quarterly Net (Charge-offs)/Recoveries

 

$

5

 

 

$

(135

)

 

$

10

 

 

 

 

 

 

 

 

 

 

 

                                 

NPAs / Assets %

 

 

0.63

%

 

 

0.40

%

 

 

0.28

%

 

 

 

 

 

 

 

 

 

 

NPAs / Loans and OREO %

 

 

0.73

%

 

 

0.47

%

 

 

0.34

%

 

 

 

 

 

 

 

 

 

 

Loan Loss Reserves / Loans (%)

 

 

1.26

%

 

 

1.27

%

 

 

1.30

%

 

 

 

 

 

 

 

 

 

 

Loan Loss Reserves / NPLs (%)

 

 

173

%

 

 

269

%

 

 

388

%