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California BanCorp Reports Strong Loan Growth and Earnings of $1.9 Million in the First Quarter of 2019

Oakland, Calif., April 30, 2019 – California BanCorp (the “Company”) (OTCQX-CALB), the parent company of California Bank of Commerce (the “Bank”), today announced very strong year-over-year loan growth resulting from the investments in both bankers and infrastructure made after its successful 2018 capital raise.

With the Bank’s focus on relationship banking and the continued economic strength in the Northern California commercial and industrial sector, total loans increased by $146 million, or 20% at March 31, 2019 compared to March 31, 2018.  “Achieving this increase in loan volume is directly attributable to the quality of our bankers and our attention to building quality long-term relationships in the Northern California business community,” stated Steve Shelton, President and Chief Executive Officer.

Net income was $1.87 million, or $0.23 per share for the first quarter of 2019 compared to $1.93 million or $0.30 per share for the first quarter of 2018.  Overall first quarter 2019 earnings were impacted by strategic investments and costs associated with hiring to support continued growth and expansion into new geographies, and public company readiness initiatives including preparing for FDICIA compliance.

Excluding non-recurring expenses in both 2019 and 2018, net income for the first quarter of 2019 was $2.3 million, or $0.29 per share, compared to $2.1 million, or $0.33 per share for the same quarter in 2018.  The lower earnings per share primarily resulted from additional shares issued in 2018 from its private placement of common stock.

During the first quarter of 2019, average earning assets were $937 million, an increase of $106 million, or 13% from the same period in 2018 and include growth in average loan and investment securities balances of $130 million and $30 million respectively, with a coinciding decline in cash balances of $53 million.

Total assets reached a record $1.04 billion as of March 31, 2019, up 14%, or $129 million compared to $909 million at March 31, 2018. This growth was propelled by an $84 million, or 12% increase in core commercial deposits, including $15 million in non-interest-bearing commercial deposits.  Core deposit growth exceeded the change in total deposits between the periods as a result of a shift in funding strategy during 2018, as the Bank reduced its reliance on a few higher cost and non-core deposits, which declined by $60 million at March 31, 2019, compared to March 31, 2018.

Financial Highlights

March 31, 2019 compared to March 31, 2018

  • Total assets increased by $129 million, or 14% to $1.04 billion.
  • Total loans increased by $146 million, or 20% to $889 million.
  • Total deposits increased by $72 million, or 9% to $871 million.
  • Total core deposits increased by $84 million, or 12% to $779 million.
  • Total equity increased by $36 million, or 41% to $124 million.

Income Statement

Three months ended March 31, 2019 compared to March 31, 2018

  • First quarter net income of $1.87 million.
  • Net interest income increased by $1.4 million, or 17% to $9.8 million.
  • Non-interest income decreased by $177 thousand, or 17% to $863 thousand.
  • Core earnings increased by $179 thousand, or 8% to $2.3 million.

Balance Sheet

Total loans increased by $146 million, or 20% to $889 million at March 31, 2019, with the largest categories of growth within the loan portfolio in relationship-based commercial real estate loans at $117 million and commercial & industrial loans at $42 million.  While CRE loan originations were especially strong during 2018, C&I loan growth was robust during the first quarter of 2019, as a result of both new relationships and additional borrowing on existing lines of credit during the quarter, reflecting the continued strength in the regional economy.

The Bank’s investment portfolio was $42 million at March 31, 2019 compared to $12.3 million at the prior year quarter end, reflecting the deployment of excess cash during the third and fourth quarters of 2018 as market interest rates peaked.

Total deposits increased by $72 million, or 9% to $871 million at March 31, 2019, from $799 million at March 31, 2018, with growth primarily concentrated in core commercial deposits, which increased by $84 million, or 12% to $779 million. Non-interest bearing deposits, primarily commercial business operating accounts, represented 38.5% of total deposits at March 31, 2019, compared to 40.2% at March 31, 2018, indicative of lower levels of operating cash from some commercial clients, as they deployed funds into commercial activity. 

Shareholder’s Equity

Total shareholder’s equity increased by $35.8 million, or 41% from $87.9 million at March 31, 2018, to $123.7 million at March 31, 2019. The $35.8 million increase includes earnings during the twelve-month period totaling $8.7 million, proceeds from the exercise of stock options totaling $3.5 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 18% between the periods, from $12.23 at March 31, 2018, to $14.43 at March 31, 2019.

Net Interest Income and Net Interest Margin – three months ended March 31, 2019 and March 31, 2018

Net interest income was $9.8 million for the three months ended March 31, 2019, an increase of $1.4 million or 17% from $8.4 million for the same period in 2018. The increase in net interest income was primarily attributable to an increase in interest and fees on loans of $1.9 million, the result of a $130 million increase in the average balance of loans outstanding between the periods and the change in the Prime Rate, with the average yield on loans increasing by 11 basis points, from 5.06% during the 2018 quarter to 5.17% in the current quarter.

Interest income from investment securities increased by $265 thousand to $331 thousand, compared to the 2018 quarter, as a result of the $30 million, or 235% increase in the average balance of investment securities outstanding in 2019 compared to the 2018 period, and the increase in the average yield to 3.14% in the current quarter compared to 2.09% in 2018.

With the substantial increase in the average balances of loans and investment securities during the 2019 quarter, the average balance of interest-earning cash and equivalents declined by $53 million compared to the 2018 period, while the average yield on cash and equivalents increased to 2.43% from 1.56% in 2018.

The yield on total interest-earning assets increased by 34 basis points to 4.98% in the 2019 quarter, compared to 4.64% during the same period in 2018, as a result of the stronger balances of both loans and investments and reduced cash and cash equivalents balances in the period.

Both non-interest-bearing and interest-bearing deposits grew at a strong rate between the periods, with average non-interest-bearing deposits up by $30 million, or 10% to $334 million and average interest-bearing deposits up by $51 million, or 10% to $523 million during the first quarter of 2019, compared to the same 2018 period. The increase in the average balance of interest-bearing deposits, as well as higher market interest rates between the periods, led to an increase in interest paid on deposits of $680 thousand to $1.5 million and an increase in the average rate paid on total deposits of 28 basis points to 0.73%, compared to 0.45% in the 2018 period.

As a result of the significant growth in higher rate loan and investment securities during the 2019 quarter compared to the 2018 period, the net interest margin increased by 14 basis points to 4.26% in 2019, compared to 4.12% in 2018.

Non-Interest Income and Expense – three months ended March 31, 2019 and March 31, 2018

During the quarter ended March 31, 2019, non-interest income totaled $863 thousand, a decrease of $177 thousand, or 17% from the quarter ended March 31, 2018. The decrease was primarily the result of a $152 thousand decrease in gains on loan sales during the 2019 quarter, in addition to a $53 thousand decrease in loan fees, primarily pre-payment fees, all partially offset by a $36 thousand increase in client service charge and other account fee income.

For the quarter ended March 31, 2019, total non-interest expenses increased by $1.1 million, or 17% to $7.6 million compared to the same 2018 period.  Of the increase, $636 thousand was in net salaries and benefits expenses, the result of hiring key lending and operational staff positions during 2018 to support the Company’s continued growth.  Occupancy and FF&E expense increased by $81 thousand, or 12% to $745 thousand in the 2019 period, as the Bank expanded its Oakland, California premises.  Other non-interest expenses increased by $411 thousand, or 21% to $2.4 million during the 2019 quarter, primarily as a result of increased professional fees incurred during the period.  Of the 2019 first quarter non-interest expenses, $648 thousand were non-recurring and primarily related to costs associated with public company readiness and FDICIA implementation.  These 2019 non-recurring expenses compare to $302 thousand in non-recurring expenses during the 2018 quarter related to a strategic initiative.

Credit Quality

Credit quality remains strong, with non-performing assets (“NPAs”) to total assets of 0.56% at March 31, 2019, compared to 0.44% at March 31, 2018, with non-performing loans of $5.8 million and $4.0 million, respectively, on those dates.

The allowance for loan losses increased by $1.7 million, or 17% to $11.3 million, or 1.27% of total loans at March 31, 2019, compared to $9.6 million, or 1.29% of total loans at March 31, 2018.

 

Closing Remarks

“It is a credit to our strong commercial loan culture and credit administration team to have achieved this level of loan growth over the previous year while maintaining our loan quality,” stated Chairman Stephen Cortese. “We are also especially pleased to have reported earlier this month, the addition of Senior Executive Vice President/Chief Lending Officer Scott Myers and the formation of a Sacramento, California based commercial banking team, which will allow the Bank to expand and diversify our client base in Northern California in the years ahead.”

Please see our detailed First Quarter 2019 Unaudited Summary Financial Statements or visit our Investor Relations website for more information.

 

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 the San Francisco Bay Area. 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.

 

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.

 

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

 

Randall D. Greenfield, (510) 457-3769
Senior Executive Vice President and Chief Financial Officer
rgreenfield@bankcbc.com

 

Source: California BanCorp

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($Thousands)

 

For the three months ended

 

Change %

 

 

 

 

 

 

Income Statement

 

    3/31/2019

 

   12/31/2018

 

   3/31/2018

 

QoQ

 

YoY

 

 

 

 

 

 

Interest and fees on loans

 

 

$10,954

 

 

 

$10,120

 

 

 

$9,099

 

 

8%

 

 

20%

 

 

 

 

 

 

 

Other interest income

 

 

  540

 

 

 

  913

 

 

 

  403

 

 

(41%)

 

 

34%

 

 

 

 

 

 

 

Total interest income

 

 

  11,494

 

 

 

  11,033

 

 

 

  9,502

 

 

4%

 

 

21%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

  1,543

 

 

 

  1,396

 

 

 

  863

 

 

11%

 

 

79%

 

 

 

 

 

 

 

Interest on borrowings and subordinated debentures

 

 

  114

 

 

 

  78

 

 

 

  206

 

 

47%

 

 

(44%)

 

 

 

 

 

 

 

Total interest expense

 

 

  1,657

 

 

 

  1,474

 

 

 

  1,069

 

 

12%

 

 

55%

 

 

 

 

 

 

 

Net interest income

 

 

  9,837

 

 

 

  9,559

 

 

 

  8,433

 

 

3%

 

 

17%

 

 

 

 

 

 

 

Provision for loan loss

 

 

  581

 

 

 

  591

 

 

 

  260

 

 

(2%)

 

 

123%

 

 

 

 

 

 

 

Net interest income after provision

 

 

  9,256

 

 

 

  8,968

 

 

 

  8,173

 

 

3%

 

 

13%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and other account fees

 

 

  300

 

 

 

  292

 

 

 

  264

 

 

3%

 

 

14%

 

 

 

 

 

 

 

Loan related fees

 

 

  370

 

 

 

  291

 

 

 

  423

 

 

27%

 

 

(13%)

 

 

 

 

 

 

 

Net gains on securities sales

 

 

  –

 

 

 

  97

 

 

 

  –

 

 

(100%)

 

 

0%

 

 

 

 

 

 

 

Net gains on loan sales

 

 

  23

 

 

 

  135

 

 

 

  175

 

 

(83%)

 

 

(87%)

 

 

 

 

 

 

 

Other

 

 

  170

 

 

 

  47

 

 

 

  178

 

 

262%

 

 

(4%)

 

 

 

 

 

 

 

Total non-interest income

 

 

  863

 

 

 

  862

 

 

 

  1,040

 

 

0%

 

 

(17%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

  4,515

 

 

 

  4,052

 

 

 

  3,879

 

 

11%

 

 

16%

 

 

 

 

 

 

 

Occupancy and equipment expenses

 

 

  745

 

 

 

  773

 

 

 

  664

 

 

(4%)

 

 

12%

 

 

 

 

 

 

 

Data processing, internet and software

 

 

  419

 

 

 

  424

 

 

 

  385

 

 

(1%)

 

 

9%

 

 

 

 

 

 

 

Professional and legal

 

 

  358

 

 

 

  190

 

 

 

  177

 

 

88%

 

 

102%

 

 

 

 

 

 

 

Strategic initiatives

 

 

  648

 

 

 

  348

 

 

 

  302

 

 

86%

 

 

115%

 

 

 

 

 

 

 

Other operating expenses

 

 

  930

 

 

 

  1,304

 

 

 

  1,080

 

 

(29%)

 

 

(14%)

 

 

 

 

 

 

 

Total operating expenses

 

 

  7,615

 

 

 

  7,091

 

 

 

  6,487

 

 

7%

 

 

17%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income before taxes

 

 

  2,504

 

 

 

  2,739

 

 

 

  2,726

 

 

(9

%)

 

(8

%)

 

 

 

 

 

 

Income taxes

 

 

  636

 

 

 

  632

 

 

 

  793

 

 

1

%

 

(20

%)

 

 

 

 

 

 

Net income

 

$

   1,868

 

 

$

   2,107

 

 

$

   1,933

 

 

(11

%)

 

(3

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

   0.23

 

 

$

   0.26

 

 

$

   0.30

 

 

(12

%)

 

(22

%)

 

 

 

 

 

 

Diluted earnings per share

 

$

   0.23

 

 

$

   0.26

 

 

$

   0.28

 

 

(11

%)

 

(19

%)

 

 

 

 

 

 

Average shares outstanding

 

 

  8,020,456

 

 

 

  7,990,089

 

 

 

  6,508,999

 

 

 

 

 

 

 

 

 

 

 

Average diluted shares

 

 

  8,102,543

 

 

 

  8,103,041

 

 

 

  6,819,965

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CORE EARNINGS SUMMARY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months Ended

 

Change %

 

 

 

 

 

 

Nonrecurring expense

 

3/31/2019

 

12/31/2018

 

3/31/2018

 

QoQ

 

YoY

 

 

 

 

 

 

Strategic initiatives

 

$

  648

 

 

$

  348

 

 

$

  302

 

 

 

 

 

 

 

 

 

 

 

Total Nonrecurring expense

 

 

  648

 

 

 

  348

 

 

 

  302

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

  191

 

 

 

  103

 

 

 

  89

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonrecurring expense (net of tax)

 

 

  457

 

 

 

  245

 

 

 

  213

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core Net income

 

$

   2,325

 

 

$

   2,352

 

 

$

   2,146

 

 

(1

%)

 

8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic core earnings per share

 

 

  0.29

 

 

 

  0.29

 

 

 

  0.33

 

 

(2

%)

 

(12

%)

 

 

 

 

 

 

Diluted core earnings per share

 

 

  0.29

 

 

 

  0.29

 

 

 

  0.31

 

 

(1

%)

 

(9

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core return on average assets

 

 

0.95

%

 

 

0.95

%

 

 

0.99

%

 

 

 

 

 

 

 

 

 

 

Core return on average tangible common equity

 

 

8.19

%

 

 

8.30

%

 

 

11.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months Ended

 

Change $

 

Change %

 

 

Average Balance Sheet Items

 

3/31/2019

 

12/31/2018

 

3/31/2018

 

QoQ

 

YoY

 

QoQ

 

YoY

 

 

Total Assets

 

 

  995,362

 

 

 

  982,992

 

 

 

  882,386

 

 

  12,370

 

 

  112,976

 

 

1%

 

13

%

 

 

Total Loans

 

 

  859,326

 

 

 

  784,765

 

 

 

  729,781

 

 

  74,561

 

 

  129,545

 

 

10%

 

18

%

 

 

Investments

 

 

  42,719

 

 

 

  52,836

 

 

 

  12,736

 

 

  (10,117)

 

 

  29,983

 

 

-19%

 

235

%

 

 

Earning Assets

 

 

  936,929

 

 

 

  926,331

 

 

 

  830,522

 

 

  10,598

 

 

  106,407

 

 

1%

 

13

%

 

 

Non-Interest Bearing Deposits

 

 

  334,493

 

 

 

  358,016

 

 

 

  304,551

 

 

  (23,523)

 

 

  29,942

 

 

-7%

 

10

%

 

 

Core Deposits

 

 

  760,652

 

 

 

  760,220

 

 

 

  665,711

 

 

  432

 

 

  94,941

 

 

0%

 

14

%

 

 

Total Deposits

 

 

  857,034

 

 

 

  854,165

 

 

 

  775,625

 

 

  2,869

 

 

  81,409

 

 

0%

 

10

%

 

 

Borrowings

 

 

  10,781

 

 

 

  5,000

 

 

 

  16,078

 

 

  5,781

 

 

  (5,297)

 

 

116%

 

-33

%

 

 

Tangible Common Equity

 

 

  115,117

 

 

 

  112,450

 

 

 

  79,137

 

 

  2,667

 

 

  35,980

 

 

2%

 

45

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At the periods ended

 

Change $

 

Change %

 

 

Balance Sheet

 

3/31/2019

 

12/31/2018

 

3/31/2018

 

QoQ

 

YoY

 

QoQ

 

YoY

 

 

Cash and equivalents

 

 

  61,320

 

 

 

  78,705

 

 

 

  121,342

 

 

  (17,385)

 

 

  (60,022)

 

 

(22%)

 

(49

%)

 

 

Investment securities

 

 

  42,008

 

 

 

  43,415

 

 

 

  12,268

 

 

  (1,407)

 

 

  29,740

 

 

(3%)

 

242

%

 

 

Other investments

 

 

  3,536

 

 

 

  3,536

 

 

 

  3,199

 

 

  0

 

 

  337

 

 

0%

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans

 

 

  371,359

 

 

 

  341,184

 

 

 

  329,269

 

 

  30,175

 

 

  42,090

 

 

9%

 

13

%

 

 

CRE loans

 

 

  462,779

 

 

 

  451,851

 

 

 

  345,580

 

 

  10,928

 

 

  117,199

 

 

2%

 

34

%

 

 

Construction and land loans

 

 

  38,764

 

 

 

  37,344

 

 

 

  41,182

 

 

  1,420

 

 

  (2,418)

 

 

4%

 

(6

%)

 

 

Other loans

 

 

  15,800

 

 

 

  16,552

 

 

 

  26,342

 

 

  (752)

 

 

  (10,542)

 

 

(5%)

 

(40

%)

 

 

Loans

 

 

  888,702

 

 

 

  846,931

 

 

 

  742,373

 

 

  41,771

 

 

  146,329

 

 

5%

 

20

%

 

 

Allowance for loan losses

 

 

  11,250

 

 

 

  10,800

 

 

 

  9,600

 

 

  450

 

 

  1,650

 

 

4%

 

17

%

 

 

Net loans

 

 

  877,452

 

 

 

  836,131

 

 

 

  732,773

 

 

  41,321

 

 

  144,679

 

 

5%

 

20

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premises and equipment, net

 

 

  1,942

 

 

 

  2,076

 

 

 

  2,600

 

 

  (134)

 

 

  (658)

 

 

(6%)

 

(25

%)

 

 

Bank owned life insurance

 

 

  17,933

 

 

 

  17,806

 

 

 

  16,547

 

 

  127

 

 

  1,386

 

 

1%

 

8

%

 

 

Deferred income taxes, net

 

 

  4,804

 

 

 

  5,803

 

 

 

  3,894

 

 

  (999)

 

 

  910

 

 

(17%)

 

23

%

 

 

Core Deposit Intangible

 

 

  276

 

 

 

  286

 

 

 

  433

 

 

  (10)

 

 

  (157)

 

 

(4%)

 

(36

%)

 

 

Goodwill

 

 

  7,350

 

 

 

  7,350

 

 

 

  7,350

 

 

  –

 

 

  –

 

 

0%

 

0

%

 

 

Other assets and interest receivable

 

 

  21,885

 

 

 

  10,564

 

 

 

  8,942

 

 

  11,321

 

 

  12,943

 

 

107%

 

145

%

 

 

Total assets

 

 

  1,038,506

 

 

 

  1,005,672

 

 

 

  909,348

 

 

  32,834

 

 

  129,158

 

 

3%

 

14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

  335,719

 

 

 

  352,402

 

 

 

  321,214

 

 

  (16,683)

 

 

  14,505

 

 

(5%)

 

5

%

 

 

Interest bearing demand deposits

 

 

  25,878

 

 

 

  32,650

 

 

 

  26,744

 

 

  (6,772)

 

 

  (866)

 

 

(21%)

 

(3

%)

 

 

Money market & savings deposits

 

 

  414,734

 

 

 

  392,290

 

 

 

  361,023

 

 

  22,444

 

 

  53,711

 

 

6%

 

15

%

 

 

Time deposits

 

 

  94,844

 

 

 

  96,912

 

 

 

  89,927

 

 

  (2,068)

 

 

  4,917

 

 

(2%)

 

5

%

 

 

Total deposits

 

 

  871,175

 

 

 

  874,254

 

 

 

  798,908

 

 

  (3,079)

 

 

  72,267

 

 

(0%)

 

9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

 

 

  25,000

 

 

 

  –

 

 

 

  14,500

 

 

  25,000

 

 

  10,500

 

 

N/A

 

72

%

 

 

Subordinated debentures, net

 

 

  4,964

 

 

 

  4,960

 

 

 

  4,947

 

 

  4

 

 

  17

 

 

0%

 

0

%

 

 

Other liabilities

 

 

  13,710

 

 

 

  5,379

 

 

 

  3,130

 

 

  8,331

 

 

  10,580

 

 

155%

 

338

%

 

 

Total liabilities

 

 

  914,849

 

 

 

  884,593

 

 

 

  821,485

 

 

  30,256

 

 

  93,364

 

 

3%

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

  105,107

 

 

 

  104,563

 

 

 

  78,229

 

 

  544

 

 

  26,878

 

 

1%

 

34

%

 

 

Retained earnings

 

 

  18,383

 

 

 

  16,515

 

 

 

  9,735

 

 

  1,868

 

 

  8,648

 

 

11%

 

89

%

 

 

Other comprehensive income

 

 

  167

 

 

 

  1

 

 

 

  (101)

 

 

  166

 

 

  268

 

 

N/A

 

– 

 

 

 

Total shareholder’s equity

 

 

  123,657

 

 

 

  121,079

 

 

 

  87,863

 

 

  2,578

 

 

  35,794

 

 

2%

 

41

%

 

 

Total liabilities and equity

 

 

  1,038,506

 

 

 

  1,005,672

 

 

 

  909,348

 

 

  32,834

 

 

  129,158

 

 

3%

 

14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per common share

 

 

  14.43

 

 

 

  14.20

 

 

 

  12.23

 

 

 

 

 

 

2%

 

18

%

 

 

Total shares outstanding

 

 

  8,045,399

 

 

 

  7,993,908

 

 

 

  6,560,445

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core relationship deposits

 

 

  778,627

 

 

 

  779,783

 

 

 

  694,165

 

 

  (1,156)

 

 

  84,462

 

 

(0%)

 

12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

 

 

 

 

 

 

 

 

Performance Ratios

 

3/31/2019

 

12/31/2018

 

3/31/2018

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

0.76

%

 

 

0.85

%

 

 

0.89

%

 

 

 

 

 

 

 

 

 

 

Return on average tangible common equity

 

 

6.58

%

 

 

7.43

%

 

 

9.91

%

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

71.17

%

 

 

68.05

%

 

 

68.48

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

4.26

%

 

 

4.09

%

 

 

4.12

%

 

 

 

 

 

 

 

 

 

 

Average investment yield

 

 

3.14

%

 

 

3.08

%

 

 

2.09

%

 

 

 

 

 

 

 

 

 

 

Average loan yield

 

 

5.17

%

 

 

5.12

%

 

 

5.06

%

 

 

 

 

 

 

 

 

 

 

Average total deposit rate

 

 

0.73

%

 

 

0.65

%

 

 

0.45

%

 

 

 

 

 

 

 

 

 

 

Average borrowing rate

 

 

4.31

%

 

 

6.17

%

 

 

5.20

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total loans to total deposits

 

 

100.3

%

 

 

91.9

%

 

 

94.1

%

 

 

 

 

 

 

 

 

 

 

Average C&I loans to total loans

 

 

40.2

%

 

 

41.1

%

 

 

43.9

%

 

 

 

 

 

 

 

 

 

 

Average non-interest bearing deposits to total deposits

 

39.0

%

 

 

41.9

%

 

 

39.3

%

 

 

 

 

 

 

 

 

 

 

Average core deposits to total deposits

 

 

88.8

%

 

 

89.0

%

 

 

85.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At the periods ended

 

 

 

 

 

 

 

 

 

 

Capital Ratios – Bank

 

3/31/2019

 

12/31/2018

 

3/31/2018

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage ratio

 

 

11.41

%

 

 

11.31

%

 

 

10.27

%

 

 

 

 

 

 

 

 

 

 

Common equity tier 1 capital ratio

 

 

10.81

%

 

 

10.94

%

 

 

10.34

%

 

 

 

 

 

 

 

 

 

 

Tier 1 risk-based capital ratio

 

 

10.81

%

 

 

10.94

%

 

 

10.34

%

 

 

 

 

 

 

 

 

 

 

Total risk-based capital ratio

 

 

12.38

%

 

 

12.52

%

 

 

12.04

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At the periods ended

 

 

 

 

 

 

 

 

 

 

Non-Performing Assets

 

3/31/2019

 

12/31/2018

 

3/31/2018

 

 

 

 

 

 

 

 

 

 

Non-Accrual Loans

 

$

  4,185

 

 

$

  4,463

 

 

$

  2,632

 

 

 

 

 

 

 

 

 

 

 

Restructured Loans

 

 

  1,586

 

 

 

  930

 

 

 

  1,399

 

 

 

 

 

 

 

 

 

 

 

Total non-performing loans (NPL)

 

 

  5,771

 

 

 

  5,393

 

 

 

  4,031

 

 

 

 

 

 

 

 

 

 

 

Other Real Estate Owned

 

 

  –

 

 

 

  –

 

 

 

  –

 

 

 

 

 

 

 

 

 

 

 

Total non-performing assets (NPA)

 

$

  5,771

 

 

$

  5,393

 

 

$

  4,031

 

 

 

 

 

 

 

 

 

 

 

Quarterly Net (Charge-offs)/Recoveries

 

$

  (135

)

 

$

  9

 

 

$

  40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NPAs / Assets %

 

 

0.56

%

 

 

0.54

%

 

 

0.44

%

 

 

 

 

 

 

 

 

 

 

NPAs / Loans and OREO %

 

 

0.65

%

 

 

0.64

%

 

 

0.54

%

 

 

 

 

 

 

 

 

 

 

Loan Loss Reserves / Loans (%)

 

 

1.27

%

 

 

1.28

%

 

 

1.29

%

 

 

 

 

 

 

 

 

 

 

Loan Loss Reserves / NPLs (%)

 

 

195

%

 

 

200

%

 

 

238

%