West Coast Community Bancorp, Parent Company of Santa Cruz County Bank, Reports Earnings for the Quarter Ended June 30, 2024
Board Declares Quarterly Cash Dividend
President and CEO,
In May, we announced our agreement to merge with 1st Capital Bancorp, with an anticipated close in the fourth quarter of 2024, subject to regulatory and shareholder approvals. After we close the merger and move into 2025, our balance sheet will reposition and we expect to recognize the benefits of improved scale and efficiency, higher lending capacity and opportunities for new business due to an expanded geographic reach.
During the second quarter, we received two top national bank financial performance rankings.
On
Financial Highlights
Performance highlights as of and for the quarter ended
- Quarterly net income of
$8.2 million decreased 12% from$9.3 million in the prior quarter, primarily due to the reversal of provision for credit losses of$1.0 million in the prior quarter and no provision in the current quarter. Net income decreased 1% from$8.3 million in the quarter endedJune 30, 2023 . Net income for the first half of 2024 was$17.5 million , an increase of 2% from the first half of the prior year. - Basic and diluted earnings per share in the second quarter of 2024 were
$0.98 and$0.97 and both decreased over the prior quarter by$0.13 . Basic and diluted earnings per share in the second quarter of 2024 decreased over the prior year comparative quarter by$0.01 . Merger expenses affected second quarter 2024 diluted earnings per share by$0.03 . Basic and diluted earnings per share in the first half of 2024 both improved compared to 2023 by$0.05 . - Total assets were
$1.71 billion as ofJune 30, 2024 , a decrease of$800 thousand compared toMarch 31, 2024 , and a decrease of$34.5 million or 2% compared toJune 30, 2023 . - The Bank's liquidity position remains healthy. Primary liquidity ratio, defined as cash and equivalents, deposits held in other banks and unpledged available-for-sale ("AFS") securities as a percentage of total assets, was 11.7% at both
June 30, 2024 andMarch 31, 2024 . - Deposits totaled
$1.43 billion atJune 30, 2024 , a decrease of$24.4 million or 2%, compared toMarch 31, 2024 , and a decrease of$35.7 million or 2% compared toJune 30, 2023 . Brokered deposits decreased$10.1 million and relationship deposits, i.e. deposits gathered outside of wholesale channels, decreased$14.3 million compared toMarch 31, 2024 . Consistent with industry trends, the Bank has continued to experience deposit runoff due to clients seeking higher rates of return. In addition, the decrease in the second quarter of 2024 reflected clients' tax payments, real estate investment, disbursement of business earnings to owners, and fluctuations from our large local agency depositors. - Gross loans totaled
$1.39 billion atJune 30, 2024 , an increase of$8.3 million or 1%, compared toMarch 31, 2024 , and an increase of$49.4 million or 4%, compared toJune 30, 2023 . The increase in the loan portfolio during the second quarter of 2024 was bolstered by the funding of two large construction loans that totaled$10.4 million atJune 30, 2024 . Conventional lines of credit outstandings increased by$6.6 million , largely driven by advances from existing clients. Loan growth was partially offset by the early payoff of a$12.1 million asset-based commercial line of credit and successful resolution and payoff of a substandard$6.4 million commercial real estate loan. - No loans were on non-accrual status as of
June 30, 2024 , compared to$90 thousand , or 0.01% of total loans as ofMarch 31, 2024 . Of the$90 thousand on non-accrual status atMarch 31, 2024 ,$46 thousand was paid off and$44 thousand was charged-off by the Bank during the second quarter. - The allowance for credit losses ("ACL"), reflecting management's estimate of credit losses for the expected life of the loans in the portfolio, totaled
$23.0 million , or 1.66% of total loans atJune 30, 2024 , compared to$23.0 million , or 1.67% atMarch 31, 2024 . The slight decrease in the allowance as a percentage of total loans is primarily attributed to the adoption of a data-driven approach to adjust for qualitative factors and the strong credit quality of the portfolio as of the second quarter, resulting in an easing of these factors for most loan types. - No provision for credit losses was made in the second quarter, including funded and unfunded credit commitments, due to the reasons discussed above. In comparison, a
$1 million reversal was booked in the first quarter of 2024 and a$486 thousand provision was recognized in the second quarter in 2023. The reversal in the first quarter was due to a reduction in the size of the loan portfolio combined with a shorter estimated average life on the commercial real estate portfolio. - Net interest margin was 4.98% in the second quarter of 2024, compared to 4.86% in the prior quarter and 4.93% for the second quarter in 2023. The increase from the prior quarter was largely due to the early payoff of two loans discussed earlier which resulted in approximately
$292 thousand received in prepayment penalties and accelerated fee recognition. Net interest margin was 4.92% in the first half of 2024, compared to 5.01% in the first half of 2023. The decrease from the prior period was primarily driven by increased funding costs, partially offset by higher yields on interest-earning assets. - For the quarters ended
June 30, 2024 andMarch 31, 2024 , return on average assets was 1.93% and 2.14%, respectively, return on average equity was 13.63% and 15.99%, respectively, and return on average tangible equity was 15.37% and 18.10%, respectively. For the six months endedJune 30, 2024 andJune 30, 2023 , return on average assets was 2.04% and 2.01%, respectively, return on average equity was 14.79% and 16.96%, respectively, and return on average tangible equity was 16.71% and 19.62%, respectively. Please see "Merger with 1st Capital Bancorp" below for the impact of merger expenses. - The efficiency ratio was 45.30% for the second quarter of 2024, as compared to 42.81% in the prior quarter and 41.52% in the second quarter of 2023. The efficiency ratio was 44.05% and 40.64% for the first half of 2024 and 2023, respectively. Merger facilitative costs impacted our efficiency ratio by 149 basis points in the second quarter of 2024 and 74 basis points year-to-date.
- All capital ratios were above regulatory requirements for a well-capitalized institution with a total risk-based capital ratio of 16.22% at
June 30, 2024 compared to 15.87% atMarch 31, 2024 . Tangible common equity to tangible asset ratio increased from 12.50% atMarch 31, 2024 to 13.00% atJune 30, 2024 . - Tangible book value per share increased to
$25.95 atJune 30, 2024 from$25.05 atMarch 31, 2024 and$21.54 atJune 30, 2023 .
Merger with 1st Capital Bancorp
Expenses related to this pending merger totaled
Interest Income / Interest Expense and Net Interest Margin
Net interest income of
For the second quarter of 2024, net interest margin was 4.98%, compared to 4.86% in the first quarter of 2024 and 4.93% for the corresponding quarter in 2023. The increase from the prior quarter was largely due to the early payoff of an asset-based line of credit and a commercial real estate loan, resulting in approximately
The following tables compare interest income, average interest-earning assets, interest expense, average interest-bearing liabilities, net interest income, net interest margin and cost of funds for each period reported.
|
For the Quarter Ended |
|
||||||||||||||
|
|
|
|
|||||||||||||
(Dollars in thousands) |
Average |
|
Interest |
|
Avg |
|
Average |
|
Interest |
|
Avg |
|||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest-earning due from banks |
$ 18,747 |
|
$ 204 |
|
4.38 % |
|
$ 29,870 |
|
$ 212 |
|
2.85 % |
|||||
Investments |
224,629 |
|
959 |
|
1.72 % |
|
253,054 |
|
1,064 |
|
1.69 % |
|||||
Loans |
1,388,657 |
|
24,614 |
|
7.13 % |
|
1,397,298 |
|
24,381 |
|
7.02 % |
|||||
Total interest-earning assets |
1,632,033 |
|
25,777 |
|
6.35 % |
|
1,680,222 |
|
25,657 |
|
6.14 % |
|||||
Noninterest-earning assets |
82,547 |
|
|
|
|
|
71,198 |
|
|
|
|
|||||
Total assets |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest checking deposits |
$ 201,446 |
|
500 |
|
1.00 % |
|
$ 213,075 |
|
447 |
|
0.84 % |
|||||
Money market deposits |
417,622 |
|
2,887 |
|
2.78 % |
|
414,490 |
|
2,686 |
|
2.61 % |
|||||
Savings deposits |
94,086 |
|
133 |
|
0.57 % |
|
99,202 |
|
116 |
|
0.47 % |
|||||
Time certificates of deposits |
136,320 |
|
1,159 |
|
3.42 % |
|
139,731 |
|
1,144 |
|
3.29 % |
|||||
Brokered deposits |
61,326 |
|
818 |
|
5.37 % |
|
66,790 |
|
883 |
|
5.32 % |
|||||
Borrowings |
4,060 |
|
58 |
|
5.74 % |
|
4,797 |
|
68 |
|
5.74 % |
|||||
Total interest-bearing liabilities |
914,860 |
|
5,555 |
|
2.44 % |
|
938,085 |
|
5,344 |
|
2.29 % |
|||||
Noninterest-bearing deposits |
539,791 |
|
|
|
|
|
560,864 |
|
|
|
|
|||||
Other noninterest-bearing liabilities |
17,570 |
|
|
|
|
|
17,870 |
|
|
|
|
|||||
Total liabilities |
1,472,221 |
|
|
|
|
|
1,516,819 |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
EQUITY |
242,359 |
|
|
|
|
|
234,601 |
|
|
|
|
|||||
Total liabilities and equity |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net interest income /margin |
|
|
$ 20,222 |
|
4.98 % |
|
|
|
$ 20,313 |
|
4.86 % |
|||||
Cost of funds |
|
|
|
|
1.54 % |
|
|
|
|
|
1.43 % |
|||||
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended |
||||||||||||
|
|
|
|
||||||||||
(Dollars in thousands) |
Average |
|
Interest |
|
Avg |
|
Average |
|
Interest |
|
Avg |
||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
||
Interest-earning due from banks |
$ 24,309 |
|
$ 416 |
|
3.44 % |
|
$ 31,354 |
|
$ 504 |
|
3.24 % |
||
Investments* |
238,842 |
|
2,022 |
|
1.70 % |
|
304,638 |
|
2,202 |
|
1.46 % |
||
Loans |
1,392,977 |
|
48,996 |
|
7.07 % |
|
1,303,028 |
|
42,335 |
|
6.55 % |
||
Total interest-earning assets* |
1,656,128 |
|
51,434 |
|
6.25 % |
|
1,639,020 |
|
45,041 |
|
5.54 % |
||
Noninterest-earning assets |
76,872 |
|
|
|
|
|
84,731 |
|
|
|
|
||
Total assets |
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
||
Interest checking deposits |
$ 207,261 |
|
947 |
|
0.92 % |
|
$ 222,042 |
|
171 |
|
0.16 % |
||
Money market deposits |
416,056 |
|
5,574 |
|
2.69 % |
|
360,906 |
|
1,760 |
|
0.98 % |
||
Savings deposits |
96,644 |
|
248 |
|
0.52 % |
|
122,577 |
|
150 |
|
0.25 % |
||
Time certificates of deposits |
138,025 |
|
2,303 |
|
3.36 % |
|
126,963 |
|
1,205 |
|
1.91 % |
||
Brokered deposits |
64,058 |
|
1,701 |
|
5.34 % |
|
17,594 |
|
436 |
|
5.00 % |
||
Borrowings |
4,429 |
|
126 |
|
5.74 % |
|
23,565 |
|
592 |
|
5.07 % |
||
Total interest-bearing liabilities |
926,473 |
|
10,899 |
|
2.37 % |
|
873,647 |
|
4,314 |
|
1.00 % |
||
Noninterest-bearing deposits |
550,327 |
|
|
|
|
|
628,902 |
|
|
|
|
||
Other noninterest-bearing liabilities |
17,720 |
|
|
|
|
|
16,728 |
|
|
|
|
||
Total liabilities |
1,494,520 |
|
|
|
|
|
1,519,277 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||
EQUITY |
238,480 |
|
|
|
|
|
204,474 |
|
|
|
|
||
Total liabilities and equity |
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||
Net interest income /margin |
|
|
$ 40,535 |
|
4.92 % |
|
|
|
$ 40,727 |
|
5.01 % |
||
Cost of funds |
|
|
|
|
1.48 % |
|
|
|
|
|
0.58 % |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Effective
Noninterest Income / Expense
Noninterest income for the quarters ended
Noninterest expense was
Liquidity Position
The following table summarizes the Bank's liquidity as of
|
As of |
||
(Dollars in thousands) |
|
|
|
Cash and due from banks |
$ 36,127 |
|
$ 39,148 |
Unencumbered AFS securities |
163,355 |
|
160,934 |
Total on-balance-sheet liquidity |
199,482 |
|
200,082 |
|
|
|
|
Line of credit from the |
461,794 |
|
452,866 |
Line of credit from the |
248,377 |
|
261,008 |
Lines at correspondent banks - unsecured |
95,000 |
|
80,000 |
Total external contingency liquidity capacity |
805,171 |
|
793,874 |
|
|
|
|
Less: overnight borrowings |
(16,500) |
|
-- |
Net available liquidity sources |
$ 988,153 |
|
$ 993,956 |
As of
As of
Loans and Asset Quality
Gross loans increased
The allowance for credit losses was
The following tables summarize the Bank's loan mix and delinquent/nonperforming loans:
|
As of |
|
Change % vs. |
||||||
(Dollars in thousands) |
|
|
|
|
6/30/2023* |
|
|
|
|
Loans held for sale |
$ 23,347 |
|
$ 27,225 |
|
$ 34,354 |
|
-14 % |
|
-32 % |
SBA and B&I loans |
143,209 |
|
140,915 |
|
146,875 |
|
2 % |
|
-2 % |
Commercial term loans |
102,924 |
|
105,309 |
|
110,332 |
|
-2 % |
|
-7 % |
Revolving commercial lines |
118,006 |
|
111,420 |
|
136,391 |
|
6 % |
|
-13 % |
Asset-based lines of credit |
9,920 |
|
17,674 |
|
7,569 |
|
-44 % |
|
31 % |
Construction loans |
152,878 |
|
137,460 |
|
134,655 |
|
11 % |
|
14 % |
Commercial real estate loans |
802,196 |
|
805,218 |
|
733,024 |
|
0 % |
|
9 % |
Home equity lines of credit |
29,779 |
|
29,378 |
|
28,753 |
|
1 % |
|
4 % |
Consumer and other loans |
2,625 |
|
2,064 |
|
3,203 |
|
27 % |
|
-18 % |
Deferred loan expenses, net of fees |
2,169 |
|
2,098 |
|
2,547 |
|
3 % |
|
-15 % |
Total gross loans |
|
|
|
|
|
|
1 % |
|
4 % |
*Prior to 2024, the loan mix schedule included a separate line item for non-accrual loans. Non-accrual loans are now reported within their respective loan types.
|
As of or for the Quarter Ended |
||||
(Dollars in thousands) |
|
|
|
|
|
Loans past due 30-89 days |
$ 2,408 |
|
$ 143 |
|
$ 2,999 |
Delinquent loans (past due 90+ days still accruing) |
-- |
|
-- |
|
-- |
Non-accrual loans |
-- |
|
90 |
|
8,027 |
Other real estate owned |
-- |
|
-- |
|
-- |
Nonperforming assets |
-- |
|
90 |
|
8,027 |
Net loan charge-offs QTD |
44 |
|
-- |
|
1,000 |
Net loan charge-offs YTD |
44 |
|
-- |
|
1,000 |
Deposits
Deposits were
The ten largest deposit relationships, excluding fully collateralized government agency deposits, represent approximately 12% of total deposits as of
The following table summarizes the Bank's deposit mix:
|
As of |
|
Change % vs. |
||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
$ 548,499 |
|
$ 564,595 |
|
$ 615,923 |
|
-3 % |
|
-11 % |
Interest-bearing demand |
195,607 |
|
213,494 |
|
208,421 |
|
-8 % |
|
-6 % |
Money markets |
431,509 |
|
408,026 |
|
368,282 |
|
6 % |
|
17 % |
Savings |
91,884 |
|
95,670 |
|
114,946 |
|
-4 % |
|
-20 % |
Time certificates of deposit |
137,286 |
|
137,251 |
|
144,486 |
|
0 % |
|
-5 % |
Brokered deposits |
26,832 |
|
36,940 |
|
15,276 |
|
-27 % |
|
76 % |
Total deposits |
$ 1,431,617 |
|
$ 1,455,976 |
|
$ 1,467,334 |
|
-2 % |
|
-2 % |
|
|
|
|
|
|
|
|
|
|
Deposits – personal |
$ 524,824 |
|
$ 515,499 |
|
$ 553,330 |
|
2 % |
|
-5 % |
Deposits – business |
879,961 |
|
903,537 |
|
898,728 |
|
-3 % |
|
-2 % |
Deposits – brokered |
26,832 |
|
36,940 |
|
15,276 |
|
-27 % |
|
76 % |
Total deposits |
$ 1,431,617 |
|
$ 1,455,976 |
|
$ 1,467,334 |
|
-2 % |
|
-2 % |
Shareholders' Equity
Total shareholders' equity was
ABOUT
Founded in 2004,
NATIONAL, STATE, AND LOCAL RATINGS AND AWARDS
- 2024 OTCQX Best 50: West Coast Community Bancorp "SCZC" stock ranked 37th for stock performance based on total return and growth in average daily dollar volume in 2023.
- American Banker Magazine Top 100
Community Banks : The Bank has ranked in the Top Community Banks list for 10 consecutive years based upon 3-year average equity for banks under$2 billion in assets. For 2023, the Bank ranked 50th in the nation. - 2024 ICBA Top-Performing Community Banks: The Bank ranked 12 out of 25 top banks with assets over
$1 billion . -
The Findley Reports, Inc. : The Bank has received the top ranking of Super Premier for 14 consecutive years. -
Bauer Financial Reports, Inc. : The Bank is rated 5-star "Superior" based upon its financial performance. -
Silicon Valley Business Journal : The Bank is the top ranked, #1 lender by number of SBA loans and #3 ranked by total dollar volume lent toSilicon Valley businesses fromOctober 1, 2022 toSeptember 30, 2023 . - Good
Times , 2023 Best of Santa Cruz County Award, Voted "Best Bank" for 12 consecutive years. -
Santa Cruz Sentinel , 2023 Reader's Choice Award, number one bank inSanta Cruz County as voted bySanta Cruz Sentinel readers for 10 years.
Forward-Looking Statements
This release may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to the successful closing of the pending merger with 1st Capital Bancorp and successful integration thereafter, fluctuations in interest rates (including but not limited to changes in depositor behavior in relation thereto), inflation, government regulations and general economic conditions, and competition within the business areas in which the Bank is conducting its operations, health of the real estate market in California, Bancorp's ability to effectively execute its business plans, and other factors beyond Bancorp and the Bank's control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. Bancorp undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.
Concurrent with this earnings release, Bancorp issued presentation slides providing supplemental information, intended to be reviewed together with this release and can be found online at: https://www.sccountybank.com/investor_relations.cfm
Selected Unaudited Financial Information |
||||||||
(Dollars in thousands, |
As of or for the Quarter |
|
|
|
As of or for the Quarter |
|
|
|
|
2024 |
2023 |
Change $ |
Change % |
|
2024 |
Change $ |
Change % |
Balance Sheet |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Cash and due from banks |
$ 36,127 |
$ 47,928 |
$ (11,801) |
-25 % |
|
$ 39,148 |
$ (3,021) |
-8 % |
Securities – AFS |
212,146 |
280,273 |
(68,127) |
-24 % |
|
219,727 |
(7,581) |
-3 % |
Securities – HTM |
7,321 |
8,665 |
(1,344) |
-16 % |
|
7,346 |
(25) |
0 % |
Gross loans |
1,387,053 |
1,337,703 |
49,350 |
4 % |
|
1,378,761 |
8,292 |
1 % |
Allowance for credit losses |
(22,999) |
(24,808) |
1,809 |
-7 % |
|
(23,043) |
44 |
0 % |
|
27,267 |
27,614 |
(347) |
-1 % |
|
27,350 |
(83) |
0 % |
Other assets |
64,929 |
69,002 |
(4,073) |
-6 % |
|
63,355 |
1,574 |
2 % |
Total assets |
$ 1,711,844 |
$ 1,746,377 |
$ (34,533) |
-2 % |
|
$ 1,712,644 |
$ (800) |
0 % |
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ 548,499 |
$ 615,923 |
$ (67,424) |
-11 % |
|
$ 564,595 |
$ (16,096) |
-3 % |
Interest-bearing non-brokered deposits |
856,286 |
836,135 |
20,151 |
2 % |
|
854,441 |
1,845 |
0 % |
Brokered deposits |
26,832 |
15,276 |
11,556 |
76 % |
|
36,940 |
(10,108) |
-27 % |
Total deposits |
1,431,617 |
1,467,334 |
(35,717) |
-2 % |
|
1,455,976 |
(24,359) |
-2 % |
Borrowings |
16,500 |
48,000 |
(31,500) |
-66 % |
|
-- |
16,500 |
0 % |
Other liabilities |
17,503 |
22,842 |
(5,339) |
-23 % |
|
18,579 |
(1,076) |
-6 % |
Shareholders' equity |
246,224 |
208,201 |
38,023 |
18 % |
|
238,089 |
8,135 |
3 % |
Total liabilities and equity |
$ 1,711,844 |
$ 1,746,377 |
$ (34,533) |
-2 % |
|
$ 1,712,644 |
$ (800) |
0 % |
|
|
|
|
|
|
|
|
|
Income Statement |
|
|
|
|
|
|
|
|
Interest income |
$ 25,777 |
$ 22,943 |
$ 2,834 |
12 % |
|
$ 25,657 |
$ 120 |
0 % |
Interest expense |
5,555 |
2,902 |
2,653 |
91 % |
|
5,344 |
211 |
4 % |
Net interest income |
20,222 |
20,041 |
181 |
1 % |
|
20,313 |
(91) |
0 % |
(Reversal of) provision for credit losses |
-- |
486 |
(486) |
-100 % |
|
(1,000) |
1,000 |
-100 % |
Noninterest income |
1,043 |
975 |
68 |
7 % |
|
1,034 |
9 |
1 % |
Noninterest expense |
9,632 |
8,725 |
907 |
10 % |
|
9,138 |
494 |
5 % |
Net income before taxes |
11,633 |
11,805 |
(172) |
-1 % |
|
13,209 |
(1,576) |
-12 % |
Income tax expense |
3,417 |
3,487 |
(70) |
-2 % |
|
3,885 |
(468) |
-12 % |
Net income after taxes |
$ 8,216 |
$ 8,318 |
$ (102) |
-1 % |
|
$ 9,324 |
$ (1,108) |
-12 % |
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ 0.98 |
$ 0.99 |
$ (0.01) |
-1 % |
|
$ 1.11 |
$ (0.13) |
-12 % |
Diluted earnings per share |
$ 0.97 |
$ 0.98 |
$ (0.01) |
-1 % |
|
$ 1.10 |
$ (0.13) |
-12 % |
Book value per share |
$ 29.18 |
$ 24.83 |
$ 4.35 |
18 % |
|
$ 28.30 |
$ 0.88 |
3 % |
Tangible book value per share(1) |
$ 25.95 |
$ 21.54 |
$ 4.41 |
20 % |
|
$ 25.05 |
$ 0.90 |
4 % |
|
|
|
|
|
|
|
|
|
Shares outstanding |
8,437,816 |
8,384,461 |
|
|
|
8,413,913 |
|
|
|
|
|
|
|
|
|
|
|
Ratios |
|
|
|
|
|
|
|
|
Net interest margin(2) |
4.98 % |
4.93 % |
|
|
|
4.86 % |
|
|
Cost of funds(3) |
1.54 % |
0.78 % |
|
|
|
1.43 % |
|
|
Efficiency ratio(4) |
45.30 % |
41.52 % |
|
|
|
42.81 % |
|
|
Return on: |
|
|
|
|
|
|
|
|
Average assets |
1.93 % |
1.94 % |
|
|
|
2.14 % |
|
|
Average equity |
13.63 % |
15.98 % |
|
|
|
15.99 % |
|
|
Average tangible equity(5) |
15.37 % |
18.42 % |
|
|
|
18.10 % |
|
|
Tier 1 leverage ratio |
13.40 % |
11.43 % |
|
|
|
12.68 % |
|
|
Total risk-based capital ratio |
16.22 % |
14.57 % |
|
|
|
15.87 % |
|
|
Tangible common equity ratio(6) |
13.00 % |
10.51 % |
|
|
|
12.50 % |
|
|
ACL /Gross loans |
1.66 % |
1.85 % |
|
|
|
1.67 % |
|
|
Noninterest-bearing deposits to total deposits |
38.31 % |
41.98 % |
|
|
|
38.78 % |
|
|
Gross loans to deposits |
96.89 % |
91.17 % |
|
|
|
94.70 % |
|
|
|
|
|
|
|
|
$ |
|
|
Selected Unaudited Financial Information |
|
|||
(Dollars in thousands, |
For the Six Months Ended
|
|
|
|
|
2024 |
2023 |
Change $ |
Change % |
Income Statement |
|
|
|
|
Interest income |
$ 51,434 |
$ 45,041 |
$ 6,393 |
14 % |
Interest expense |
10,899 |
4,314 |
6,585 |
153 % |
Net interest income |
40,535 |
40,727 |
(192) |
0 % |
Provision for loan losses |
(1,000) |
801 |
(1,801) |
-225 % |
Noninterest income |
2,077 |
1,756 |
321 |
18 % |
Noninterest expense |
18,770 |
17,277 |
1,493 |
9 % |
Net income before taxes |
24,842 |
24,405 |
437 |
2 % |
Income tax expense |
7,302 |
7,208 |
94 |
1 % |
Net income after taxes |
$ 17,540 |
$ 17,197 |
$ 343 |
2 % |
|
|
|
|
|
Basic earnings per share |
$ 2.09 |
$ 2.04 |
$ 0.05 |
2 % |
Diluted earnings per share |
$ 2.08 |
$ 2.03 |
$ 0.05 |
2 % |
|
|
|
|
|
Ratios |
|
|
|
|
Net interest margin(2) |
4.92 % |
5.01 % |
|
|
Cost of funds(3) |
1.48 % |
0.58 % |
|
|
Efficiency ratio(4) |
44.05 % |
40.64 % |
|
|
Return on: |
|
|
|
|
Average assets |
2.04 % |
2.01 % |
|
|
Average equity |
14.79 % |
16.96 % |
|
|
Average tangible equity(5) |
16.71 % |
19.62 % |
|
|
|
|
|
|
|
(1) Tangible equity equals total shareholders' equity less goodwill and other intangible assets. Tangible book value per share divides tangible equity by period ending shares outstanding. |
||||
(2) Net interest margin is calculated by dividing annualized net interest income by period average interest-earning assets. |
||||
(3) Cost of funds is computed by dividing annualized interest expense by the sum of period average deposits and borrowings. |
||||
(4) Efficiency ratio equals total noninterest expenses divided by the sum of net interest income and noninterest income. |
||||
(5) Return on average tangible equity is calculated by dividing annualized net income by period average tangible shareholders' equity. Tangible shareholders' equity is defined in note (1) above. |
||||
(6) Tangible common equity ratio is calculated by dividing tangible shareholders' equity as defined in note (1) above by assets less goodwill and other intangible assets. |
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