Bankwell Financial Group Reports Operating Results for the Second Quarter and Declares Third Quarter Dividend
The Company's Board of Directors declared a
We recommend reading this earnings release in conjunction with the Second Quarter 2024 Investor Presentation, located at http://investor.mybankwell.com/Presentations and included as an exhibit to our
Notes
"The Company’s core profitability has begun to expand; PPNR Return on Average Assets grew to 1.22% for the quarter, while the Net interest margin (“NIM”) has expanded to 2.75%. We continue to achieve peer-leading operational efficiency with a Noninterest Expense to Average Assets ratio of 1.55% for the quarter. Going forward, the Company’s liability sensitive balance sheet is well positioned for any potential
Earnings per share for the second quarter were reduced by approximately
We are also pleased to announce that the Company will host its first earnings call after third quarter financial results are released in
Second Quarter 2024 Highlights:
-
PPNR was
$9.7 million and PPNR return on average assets was 1.22% for the quarter endedJune 30, 2024 . -
Net income of
$1.1 million for the quarter reflects the impact of an$8.2 million provision for credit losses.$6.6 million of the provision for credit losses is related to a specific reserve taken against an$8.7 million commercial business credit1.
-
The net interest margin was 2.75% and 2.73% for the quarter and six months ended
June 30, 2024 , respectively. -
Noninterest expense to average assets was 1.55% and 1.60% for the quarter and six months ended
June 30, 2024 , respectively. -
Total gross loans were
$2.7 billion , decreasing$61.4 million , or 2.3%, compared toDecember 31, 2023 . -
Average yield on total loans was 6.37% for the six months ended
June 30, 2024 . -
Deposits were
$2.7 billion , decreasing$74.4 million , or 2.7%, compared toDecember 31, 2023 . -
Brokered deposits decreased
$144.2 million compared toDecember 31, 2023 . -
FDIC -insured deposits totaled$1.9 billion and represent 72.9% of total deposits as ofJune 30, 2024 . -
Return on average assets was 0.14% and 0.31% for the quarter and six months ended
June 30, 2024 , respectively. -
Return on average tangible common equity was 1.67% and 3.65% for the quarter and six months ended
June 30, 2024 , respectively. -
Investment securities totaled
$138.0 million and represent 4.4% of total assets. -
The Company repurchased 40,140 shares and 76,320 at the weighted average prices of
$24.55 and$24.94 per share for the quarter and six months endedJune 30, 2024 , respectively.
1 - 8-K was filed on
Earnings and Performance
Revenues (net interest income plus noninterest income) for the quarter ended
Net income for the quarter ended
Basic and diluted earnings per share were
The net interest margin (fully taxable equivalent basis) for the quarters ended
2 - The increase in overall loan yields was 28 bps and 38 bps for the quarter and six months ended
Allowance for Credit Losses - Loans ("ACL-Loans")
The ACL-Loans was
Financial Condition
Assets totaled
Capital
Shareholders’ equity totaled
About
Bankwell is a commercial bank that serves the banking needs of residents and businesses throughout
For more information, visit www.mybankwell.com.
This press release may contain certain forward-looking statements about the Company. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, general economic conditions or conditions within the banking industry or securities markets, and legislative and regulatory changes that could adversely affect the business in which the Company and its subsidiaries are engaged.
Non-GAAP Financial Measures
In addition to evaluating the Company's financial performance in accordance with
CONSOLIDATED BALANCE SHEETS (unaudited) (Dollars in thousands) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
ASSETS |
|
|
|
|
|
|
|
||||||||
Cash and due from banks |
$ |
234,277 |
|
|
$ |
245,043 |
|
|
$ |
267,521 |
|
|
$ |
207,345 |
|
Federal funds sold |
|
17,103 |
|
|
|
2,584 |
|
|
|
1,636 |
|
|
|
54,706 |
|
Cash and cash equivalents |
|
251,380 |
|
|
|
247,627 |
|
|
|
269,157 |
|
|
|
262,051 |
|
|
|
|
|
|
|
|
|
||||||||
Investment securities |
|
|
|
|
|
|
|
||||||||
Marketable equity securities, at fair value |
|
2,079 |
|
|
|
2,069 |
|
|
|
2,070 |
|
|
|
2,017 |
|
Available for sale investment securities, at fair value |
|
107,635 |
|
|
|
108,417 |
|
|
|
109,736 |
|
|
|
99,938 |
|
Held to maturity investment securities, at amortized cost |
|
28,286 |
|
|
|
15,739 |
|
|
|
15,817 |
|
|
|
15,884 |
|
Total investment securities |
|
138,000 |
|
|
|
126,225 |
|
|
|
127,623 |
|
|
|
117,839 |
|
Loans receivable (net of ACL-Loans of |
|
2,616,691 |
|
|
|
2,646,686 |
|
|
|
2,685,301 |
|
|
|
2,736,607 |
|
Accrued interest receivable |
|
14,675 |
|
|
|
15,104 |
|
|
|
14,863 |
|
|
|
14,208 |
|
|
|
5,655 |
|
|
|
5,655 |
|
|
|
5,696 |
|
|
|
5,696 |
|
Premises and equipment, net |
|
25,599 |
|
|
|
26,161 |
|
|
|
27,018 |
|
|
|
27,658 |
|
Bank-owned life insurance |
|
52,097 |
|
|
|
51,764 |
|
|
|
51,435 |
|
|
|
50,816 |
|
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
Deferred income taxes, net |
|
11,345 |
|
|
|
9,137 |
|
|
|
9,383 |
|
|
|
10,014 |
|
Other assets |
|
23,623 |
|
|
|
24,326 |
|
|
|
22,417 |
|
|
|
25,229 |
|
Total assets |
$ |
3,141,654 |
|
|
$ |
3,155,274 |
|
|
$ |
3,215,482 |
|
|
$ |
3,252,707 |
|
|
|
|
|
|
|
|
|
||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
||||||||
Liabilities |
|
|
|
|
|
|
|
||||||||
Deposits |
|
|
|
|
|
|
|
||||||||
Noninterest bearing deposits |
$ |
328,475 |
|
|
$ |
376,248 |
|
|
$ |
346,172 |
|
|
$ |
367,635 |
|
Interest bearing deposits |
|
2,333,900 |
|
|
|
2,297,274 |
|
|
|
2,390,585 |
|
|
|
2,421,228 |
|
Total deposits |
|
2,662,375 |
|
|
|
2,673,522 |
|
|
|
2,736,757 |
|
|
|
2,788,863 |
|
|
|
|
|
|
|
|
|
||||||||
Advances from the |
|
90,000 |
|
|
|
90,000 |
|
|
|
90,000 |
|
|
|
90,000 |
|
Subordinated debentures |
|
69,328 |
|
|
|
69,266 |
|
|
|
69,205 |
|
|
|
69,082 |
|
Accrued expenses and other liabilities |
|
52,975 |
|
|
|
54,454 |
|
|
|
53,768 |
|
|
|
55,949 |
|
Total liabilities |
|
2,874,678 |
|
|
|
2,887,242 |
|
|
|
2,949,730 |
|
|
|
3,003,894 |
|
|
|
|
|
|
|
|
|
||||||||
Shareholders’ equity |
|
|
|
|
|
|
|
||||||||
Common stock, no par value |
|
118,037 |
|
|
|
118,401 |
|
|
|
118,247 |
|
|
|
116,541 |
|
Retained earnings |
|
150,895 |
|
|
|
151,350 |
|
|
|
149,169 |
|
|
|
133,988 |
|
Accumulated other comprehensive (loss) |
|
(1,956 |
) |
|
|
(1,719 |
) |
|
|
(1,664 |
) |
|
|
(1,716 |
) |
Total shareholders’ equity |
|
266,976 |
|
|
|
268,032 |
|
|
|
265,752 |
|
|
|
248,813 |
|
|
|
|
|
|
|
|
|
||||||||
Total liabilities and shareholders’ equity |
$ |
3,141,654 |
|
|
$ |
3,155,274 |
|
|
$ |
3,215,482 |
|
|
$ |
3,252,707 |
|
CONSOLIDATED STATEMENTS OF INCOME (unaudited) (Dollars in thousands, except share data) |
|||||||||||||||||||||
|
For the Quarter Ended |
For the Six Months Ended |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and dividend income |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and fees on loans |
$ |
43,060 |
|
|
$ |
43,325 |
|
|
$ |
44,122 |
|
|
$ |
42,482 |
|
$ |
86,385 |
|
|
$ |
82,205 |
Interest and dividends on securities |
|
1,190 |
|
|
|
1,130 |
|
|
|
1,108 |
|
|
|
1,002 |
|
|
2,320 |
|
|
|
2,002 |
Interest on cash and cash equivalents |
|
3,429 |
|
|
|
3,826 |
|
|
|
4,164 |
|
|
|
3,022 |
|
|
7,255 |
|
|
|
6,590 |
Total interest and dividend income |
|
47,679 |
|
|
|
48,281 |
|
|
|
49,394 |
|
|
|
46,506 |
|
|
95,960 |
|
|
|
90,797 |
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense on deposits |
|
24,677 |
|
|
|
25,362 |
|
|
|
25,307 |
|
|
|
20,777 |
|
|
50,039 |
|
|
|
37,810 |
Interest expense on borrowings |
|
1,783 |
|
|
|
1,772 |
|
|
|
1,842 |
|
|
|
1,738 |
|
|
3,555 |
|
|
|
3,455 |
Total interest expense |
|
26,460 |
|
|
|
27,134 |
|
|
|
27,149 |
|
|
|
22,515 |
|
|
53,594 |
|
|
|
41,265 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income |
|
21,219 |
|
|
|
21,147 |
|
|
|
22,245 |
|
|
|
23,991 |
|
|
42,366 |
|
|
|
49,532 |
Provision (credit) for credit losses |
|
8,183 |
|
|
|
3,683 |
|
|
|
(960 |
) |
|
|
2,579 |
|
|
11,866 |
|
|
|
3,405 |
Net interest income after provision for credit losses |
|
13,036 |
|
|
|
17,464 |
|
|
|
23,205 |
|
|
|
21,412 |
|
|
30,500 |
|
|
|
46,127 |
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank owned life insurance |
|
333 |
|
|
|
329 |
|
|
|
316 |
|
|
|
292 |
|
|
662 |
|
|
|
573 |
Service charges and fees |
|
495 |
|
|
|
304 |
|
|
|
688 |
|
|
|
361 |
|
|
799 |
|
|
|
647 |
Gains and fees from sales of loans |
|
45 |
|
|
|
321 |
|
|
|
79 |
|
|
|
725 |
|
|
366 |
|
|
|
1,656 |
Other |
|
(190 |
) |
|
|
(39 |
) |
|
|
46 |
|
|
|
23 |
|
|
(229 |
) |
|
|
51 |
Total noninterest income |
|
683 |
|
|
|
915 |
|
|
|
1,129 |
|
|
|
1,401 |
|
|
1,598 |
|
|
|
2,927 |
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Salaries and employee benefits |
|
6,176 |
|
|
|
6,291 |
|
|
|
6,088 |
|
|
|
6,390 |
|
|
12,467 |
|
|
|
12,471 |
Occupancy and equipment |
|
2,238 |
|
|
|
2,322 |
|
|
|
2,231 |
|
|
|
2,204 |
|
|
4,561 |
|
|
|
4,288 |
Professional services |
|
989 |
|
|
|
1,065 |
|
|
|
1,033 |
|
|
|
692 |
|
|
2,054 |
|
|
|
2,014 |
Data processing |
|
755 |
|
|
|
740 |
|
|
|
747 |
|
|
|
729 |
|
|
1,495 |
|
|
|
1,400 |
Director fees |
|
306 |
|
|
|
900 |
|
|
|
605 |
|
|
|
453 |
|
|
1,206 |
|
|
|
845 |
|
|
705 |
|
|
|
930 |
|
|
|
1,026 |
|
|
|
1,050 |
|
|
1,635 |
|
|
|
2,112 |
Marketing |
|
90 |
|
|
|
114 |
|
|
|
139 |
|
|
|
177 |
|
|
203 |
|
|
|
328 |
Other |
|
986 |
|
|
|
935 |
|
|
|
995 |
|
|
|
946 |
|
|
1,921 |
|
|
|
1,874 |
Total noninterest expense |
|
12,245 |
|
|
|
13,297 |
|
|
|
12,864 |
|
|
|
12,641 |
|
|
25,542 |
|
|
|
25,332 |
Income before income tax expense |
|
1,474 |
|
|
|
5,082 |
|
|
|
11,470 |
|
|
|
10,172 |
|
|
6,556 |
|
|
|
23,722 |
Income tax expense |
|
356 |
|
|
|
1,319 |
|
|
|
2,946 |
|
|
|
2,189 |
|
|
1,675 |
|
|
|
5,360 |
Net income |
$ |
1,118 |
|
|
$ |
3,763 |
|
|
$ |
8,524 |
|
|
$ |
7,983 |
|
$ |
4,881 |
|
|
$ |
18,362 |
Earnings Per Common Share: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
$ |
0.14 |
|
|
$ |
0.48 |
|
|
$ |
1.09 |
|
|
$ |
1.02 |
|
$ |
0.62 |
|
|
$ |
2.36 |
Diluted |
$ |
0.14 |
|
|
$ |
0.48 |
|
|
$ |
1.09 |
|
|
$ |
1.02 |
|
$ |
0.62 |
|
|
$ |
2.34 |
Weighted Average Common Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
7,747,675 |
|
|
|
7,663,521 |
|
|
|
7,603,938 |
|
|
|
7,593,417 |
|
|
7,705,598 |
|
|
|
7,574,160 |
Diluted |
|
7,723,888 |
|
|
|
7,687,679 |
|
|
|
7,650,451 |
|
|
|
7,601,562 |
|
|
7,721,880 |
|
|
|
7,639,828 |
Dividends per common share |
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
$ |
0.40 |
|
|
$ |
0.40 |
CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) |
|||||||||||||||||
|
For the Quarter Ended |
|
For the Six Months Ended |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Performance ratios: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Return on average assets |
0.14 |
% |
|
0.47 |
% |
|
1.03 |
% |
|
0.99 |
% |
|
0.31 |
% |
|
1.14 |
% |
Return on average shareholders' equity |
1.65 |
% |
|
5.59 |
% |
|
12.82 |
% |
|
12.91 |
% |
|
3.61 |
% |
|
15.15 |
% |
Return on average tangible common equity |
1.67 |
% |
|
5.65 |
% |
|
12.95 |
% |
|
13.05 |
% |
|
3.65 |
% |
|
15.31 |
% |
Net interest margin |
2.75 |
% |
|
2.71 |
% |
|
2.81 |
% |
|
3.07 |
% |
|
2.73 |
% |
|
3.15 |
% |
Efficiency ratio(1) |
55.9 |
% |
|
60.3 |
% |
|
55.0 |
% |
|
49.8 |
% |
|
58.1 |
% |
|
48.3 |
% |
Net loan charge-offs as a % of average loans |
0.01 |
% |
|
0.11 |
% |
|
0.01 |
% |
|
— |
% |
|
0.13 |
% |
|
0.02 |
% |
Dividend payout ratio(2) |
142.86 |
% |
|
41.67 |
% |
|
18.35 |
% |
|
19.61 |
% |
|
64.52 |
% |
|
17.09 |
% |
(1) Efficiency ratio is defined as noninterest expense, less other real estate owned expenses and amortization of intangible assets, divided by our operating revenue, which is equal to net interest income plus noninterest income excluding gains and losses on sales of securities and gains and losses on other real estate owned. In our judgment, the adjustments made to operating revenue allow investors and analysts to better assess our operating expenses in relation to our core operating revenue by removing the volatility that is associated with certain one-time items and other discrete items that are unrelated to our core business.
(2) The dividend payout ratio is calculated by dividing dividends per share by earnings per share.
|
As of |
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Capital ratios: |
|
|
|
|
|
|
|
||||||||
Total Common Equity Tier 1 Capital to Risk-Weighted Assets(1) |
|
11.73 |
% |
|
|
11.60 |
% |
|
|
11.30 |
% |
|
|
10.34 |
% |
Total Capital to Risk-Weighted Assets(1) |
|
12.98 |
% |
|
|
12.63 |
% |
|
|
12.32 |
% |
|
|
11.41 |
% |
|
|
11.73 |
% |
|
|
11.60 |
% |
|
|
11.30 |
% |
|
|
10.34 |
% |
|
|
10.17 |
% |
|
|
10.09 |
% |
|
|
9.81 |
% |
|
|
9.41 |
% |
Tangible common equity to tangible assets |
|
8.42 |
% |
|
|
8.42 |
% |
|
|
8.19 |
% |
|
|
7.58 |
% |
Fully diluted tangible book value per common share |
$ |
33.61 |
|
|
$ |
33.57 |
|
|
$ |
33.39 |
|
|
$ |
31.45 |
|
(1)
ASSET QUALITY (unaudited) (Dollars in thousands) |
|||||||||||||||
|
For the Quarter Ended |
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
ACL-Loans: |
|
|
|
|
|
|
|
||||||||
Balance at beginning of period |
$ |
27,991 |
|
|
$ |
27,946 |
|
|
$ |
29,284 |
|
|
$ |
27,998 |
|
Charge-offs: |
|
|
|
|
|
|
|
||||||||
Residential real estate |
|
(9 |
) |
|
|
(132 |
) |
|
|
— |
|
|
|
— |
|
Commercial real estate |
|
(522 |
) |
|
|
(3,306 |
) |
|
|
(824 |
) |
|
|
— |
|
Commercial business |
|
— |
|
|
|
(197 |
) |
|
|
— |
|
|
|
— |
|
Consumer |
|
(12 |
) |
|
|
(49 |
) |
|
|
(15 |
) |
|
|
(25 |
) |
Total charge-offs |
|
(543 |
) |
|
|
(3,684 |
) |
|
|
(839 |
) |
|
|
(25 |
) |
Recoveries: |
|
|
|
|
|
|
|
||||||||
Residential real estate |
|
141 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial real estate |
|
113 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial business |
|
— |
|
|
|
27 |
|
|
|
464 |
|
|
|
32 |
|
Consumer |
|
13 |
|
|
|
4 |
|
|
|
3 |
|
|
|
10 |
|
Total recoveries |
|
267 |
|
|
|
31 |
|
|
|
467 |
|
|
|
42 |
|
Net loan (charge-offs) recoveries |
|
(276 |
) |
|
|
(3,653 |
) |
|
|
(372 |
) |
|
|
17 |
|
Provision (credit) for credit losses - loans |
|
8,368 |
|
|
|
3,698 |
|
|
|
(966 |
) |
|
|
2,679 |
|
Balance at end of period |
$ |
36,083 |
|
|
$ |
27,991 |
|
|
$ |
27,946 |
|
|
$ |
30,694 |
|
|
As of |
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Asset quality: |
|
|
|
|
|
|
|
||||||||
Nonaccrual loans |
|
|
|
|
|
|
|
||||||||
Residential real estate |
$ |
1,339 |
|
|
$ |
1,237 |
|
|
$ |
1,386 |
|
|
$ |
1,429 |
|
Commercial real estate |
|
28,088 |
|
|
|
19,083 |
|
|
|
23,009 |
|
|
|
1,905 |
|
Commercial business |
|
17,396 |
|
|
|
16,841 |
|
|
|
15,430 |
|
|
|
2,815 |
|
Construction |
|
9,382 |
|
|
|
9,382 |
|
|
|
9,382 |
|
|
|
9,382 |
|
Consumer |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total nonaccrual loans |
|
56,205 |
|
|
|
46,543 |
|
|
|
49,207 |
|
|
|
15,531 |
|
Other real estate owned |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total nonperforming assets |
$ |
56,205 |
|
|
$ |
46,543 |
|
|
$ |
49,207 |
|
|
$ |
15,531 |
|
|
|
|
|
|
|
|
|
||||||||
Nonperforming loans as a % of total loans |
|
2.12 |
% |
|
|
1.74 |
% |
|
|
1.81 |
% |
|
|
0.56 |
% |
Nonperforming assets as a % of total assets |
|
1.79 |
% |
|
|
1.48 |
% |
|
|
1.53 |
% |
|
|
0.48 |
% |
ACL-loans as a % of total loans |
|
1.36 |
% |
|
|
1.04 |
% |
|
|
1.03 |
% |
|
|
1.11 |
% |
ACL-loans as a % of nonperforming loans |
|
64.20 |
% |
|
|
60.14 |
% |
|
|
56.79 |
% |
|
|
197.63 |
% |
Total past due loans to total loans |
|
0.84 |
% |
|
|
1.44 |
% |
|
|
0.78 |
% |
|
|
1.30 |
% |
Total nonaccrual loans increased
Nonperforming assets as a percentage of total assets increased to 1.79% at
LOAN & DEPOSIT PORTFOLIO (unaudited) (Dollars in thousands) |
||||||||||||||
Period End Loan Composition |
|
|
|
|
|
|
Current QTD
|
|
YTD
|
|||||
|
$ |
47,875 |
|
$ |
49,098 |
|
$ |
50,931 |
|
(2.5 |
)% |
|
(6.0 |
)% |
|
|
1,912,701 |
|
|
1,927,636 |
|
|
1,947,648 |
|
(0.8 |
) |
|
(1.8 |
) |
Construction |
|
150,259 |
|
|
151,967 |
|
|
183,414 |
|
(1.1 |
) |
|
(18.1 |
) |
Total Real Estate Loans |
|
2,110,835 |
|
|
2,128,701 |
|
|
2,181,993 |
|
(0.8 |
) |
|
(3.3 |
) |
Commercial Business |
|
503,444 |
|
|
508,912 |
|
|
500,569 |
|
(1.1 |
) |
|
0.6 |
|
Consumer |
|
42,906 |
|
|
41,946 |
|
|
36,045 |
|
2.3 |
|
|
19.0 |
|
Total Loans |
$ |
2,657,185 |
|
$ |
2,679,559 |
|
$ |
2,718,607 |
|
(0.8 |
)% |
|
(2.3 |
)% |
(1) Includes owner occupied commercial real estate of |
Gross loans totaled
Period End Deposit Composition |
|
|
|
|
|
|
Current QTD
|
|
YTD
|
|||||
Noninterest bearing demand |
$ |
328,475 |
|
$ |
376,248 |
|
$ |
346,172 |
|
(12.7 |
)% |
|
(5.1 |
)% |
NOW |
|
122,112 |
|
|
95,227 |
|
|
90,829 |
|
28.2 |
|
|
34.4 |
|
Money Market |
|
825,599 |
|
|
818,408 |
|
|
887,352 |
|
0.9 |
|
|
(7.0 |
) |
Savings |
|
91,870 |
|
|
92,188 |
|
|
97,331 |
|
(0.3 |
) |
|
(5.6 |
) |
Time |
|
1,294,319 |
|
|
1,291,451 |
|
|
1,315,073 |
|
0.2 |
|
|
(1.6 |
) |
Total Deposits |
$ |
2,662,375 |
|
$ |
2,673,522 |
|
$ |
2,736,757 |
|
(0.4 |
)% |
|
(2.7 |
)% |
Total deposits were
NONINTEREST EXPENSE (unaudited) (Dollars in thousands) |
||||||||||||||
|
For the Quarter Ended |
|
|
|
|
|||||||||
Noninterest expense |
|
|
|
|
|
|
|
|
|
|||||
Salaries and employee benefits |
$ |
6,176 |
|
$ |
6,291 |
|
$ |
6,390 |
|
(1.8 |
)% |
|
(3.3 |
)% |
Occupancy and equipment |
|
2,238 |
|
|
2,322 |
|
|
2,204 |
|
(3.6 |
) |
|
1.5 |
|
Professional services |
|
989 |
|
|
1,065 |
|
|
692 |
|
(7.1 |
) |
|
42.9 |
|
Data processing |
|
755 |
|
|
740 |
|
|
729 |
|
2.0 |
|
|
3.6 |
|
Director fees |
|
306 |
|
|
900 |
|
|
453 |
|
(66.0 |
) |
|
(32.5 |
) |
|
|
705 |
|
|
930 |
|
|
1,050 |
|
(24.2 |
) |
|
(32.9 |
) |
Marketing |
|
90 |
|
|
114 |
|
|
177 |
|
(21.1 |
) |
|
(49.2 |
) |
Other |
|
986 |
|
|
935 |
|
|
946 |
|
5.5 |
|
|
4.2 |
|
Total noninterest expense |
$ |
12,245 |
|
$ |
13,297 |
|
$ |
12,641 |
|
(7.9 |
)% |
|
(3.1 |
)% |
Noninterest expense decreased by
|
For the Six Months Ended |
|
||||||
Noninterest expense |
|
|
|
|
|
|||
Salaries and employee benefits |
$ |
12,467 |
|
$ |
12,471 |
|
— |
% |
Occupancy and equipment |
|
4,561 |
|
|
4,288 |
|
6.4 |
|
Professional services |
|
2,054 |
|
|
2,014 |
|
2.0 |
|
Data processing |
|
1,495 |
|
|
1,400 |
|
6.8 |
|
Director fees |
|
1,206 |
|
|
845 |
|
42.7 |
|
|
|
1,635 |
|
|
2,112 |
|
(22.6 |
) |
Marketing |
|
203 |
|
|
328 |
|
(38.1 |
) |
Other |
|
1,921 |
|
|
1,874 |
|
2.5 |
|
Total noninterest expense |
$ |
25,542 |
|
$ |
25,332 |
|
0.8 |
% |
Noninterest expense increased by
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (unaudited) (Dollars in thousands, except share data) |
|||||||||||||||
|
As of |
||||||||||||||
Computation of Tangible Common Equity to Tangible Assets |
|
|
|
|
|
|
|
||||||||
Total Equity |
$ |
266,976 |
|
|
$ |
268,032 |
|
|
$ |
265,752 |
|
|
$ |
248,813 |
|
Less: |
|
|
|
|
|
|
|
||||||||
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
Other intangibles |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Tangible Common Equity |
$ |
264,387 |
|
|
$ |
265,443 |
|
|
$ |
263,163 |
|
|
$ |
246,224 |
|
|
|
|
|
|
|
|
|
||||||||
Total Assets |
$ |
3,141,654 |
|
|
$ |
3,155,274 |
|
|
$ |
3,215,482 |
|
|
$ |
3,252,707 |
|
Less: |
|
|
|
|
|
|
|
||||||||
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
|
|
2,589 |
|
Other intangibles |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Tangible Assets |
$ |
3,139,065 |
|
|
$ |
3,152,685 |
|
|
$ |
3,212,893 |
|
|
$ |
3,250,118 |
|
|
|
|
|
|
|
|
|
||||||||
Tangible Common Equity to Tangible Assets |
|
8.42 |
% |
|
|
8.42 |
% |
|
|
8.19 |
% |
|
|
7.58 |
% |
|
As of |
||||||||||
Computation of Fully Diluted Tangible Book Value per Common Share |
|
|
|
|
|
|
|
||||
Total shareholders' equity |
$ |
266,976 |
|
$ |
268,032 |
|
$ |
265,752 |
|
$ |
248,813 |
Less: |
|
|
|
|
|
|
|
||||
Preferred stock |
|
— |
|
|
— |
|
|
— |
|
|
— |
Common shareholders' equity |
$ |
266,976 |
|
$ |
268,032 |
|
$ |
265,752 |
|
$ |
248,813 |
Less: |
|
|
|
|
|
|
|
||||
|
|
2,589 |
|
|
2,589 |
|
|
2,589 |
|
|
2,589 |
Other intangibles |
|
— |
|
|
— |
|
|
— |
|
|
— |
Tangible common shareholders' equity |
$ |
264,387 |
|
$ |
265,443 |
|
$ |
263,163 |
|
$ |
246,224 |
|
|
|
|
|
|
|
|
||||
Common shares issued and outstanding |
|
7,866,499 |
|
|
7,908,180 |
|
|
7,882,616 |
|
|
7,829,950 |
|
|
|
|
|
|
|
|
||||
Fully Diluted Tangible Book Value per Common Share |
$ |
33.61 |
|
$ |
33.57 |
|
$ |
33.39 |
|
$ |
31.45 |
|
For the Quarter Ended |
|
For the Six Months Ended |
||||||||
Computation of PPNR |
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expense |
|
|
|
|
|
|
|
|
|
|
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
Provision (credit) for credit losses |
8,183 |
|
3,683 |
|
(960) |
|
2,579 |
|
11,866 |
|
3,405 |
PPNR |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPNR return on average assets |
1.22 % |
|
1.10 % |
|
1.27 % |
|
1.58 % |
|
1.16 % |
|
1.69 % |
EARNINGS PER SHARE ("EPS") (unaudited) (Dollars in thousands, except share data) |
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(In thousands, except per share data) |
||||||||||||||
Net income |
$ |
1,118 |
|
|
$ |
7,983 |
|
|
$ |
4,881 |
|
|
$ |
18,362 |
|
Dividends to participating securities(1) |
|
(40 |
) |
|
|
(41 |
) |
|
|
(79 |
) |
|
|
(84 |
) |
Undistributed earnings allocated to participating securities(1) |
|
14 |
|
|
|
(172 |
) |
|
|
(52 |
) |
|
|
(403 |
) |
Net income for earnings per share calculation |
$ |
1,092 |
|
|
$ |
7,770 |
|
|
$ |
4,750 |
|
|
$ |
17,875 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding, basic |
|
7,748 |
|
|
|
7,593 |
|
|
|
7,706 |
|
|
|
7,574 |
|
Effect of dilutive equity-based awards(2) |
|
(24 |
) |
|
|
8 |
|
|
|
16 |
|
|
|
66 |
|
Weighted average shares outstanding, diluted |
|
7,724 |
|
|
|
7,601 |
|
|
|
7,722 |
|
|
|
7,640 |
|
Net earnings per common share: |
|
|
|
|
|
|
|
||||||||
Basic earnings per common share |
$ |
0.14 |
|
|
$ |
1.02 |
|
|
$ |
0.62 |
|
|
$ |
2.36 |
|
Diluted earnings per common share |
$ |
0.14 |
|
|
$ |
1.02 |
|
|
$ |
0.62 |
|
|
$ |
2.34 |
|
(1) |
Represents dividends paid and undistributed earnings allocated to unvested stock-based awards that contain non-forfeitable rights to dividends. |
|
(2) |
Represents the effect of the assumed exercise of stock options and the vesting of restricted shares, as applicable, utilizing the treasury stock method. |
NONINTEREST INCOME (unaudited) (Dollars in thousands) |
||||||||||||||||
|
For the Quarter Ended |
|
|
|
|
|||||||||||
Noninterest income |
|
|
|
|
|
|
|
|
|
|||||||
Bank owned life insurance |
$ |
333 |
|
|
$ |
329 |
|
|
$ |
292 |
|
1.2 |
% |
|
14.0 |
% |
Service charges and fees |
|
495 |
|
|
|
304 |
|
|
|
361 |
|
62.8 |
|
|
37.1 |
|
Gains and fees from sales of loans |
|
45 |
|
|
|
321 |
|
|
|
725 |
|
(86.0 |
) |
|
(93.8 |
) |
Other |
|
(190 |
) |
|
|
(39 |
) |
|
|
23 |
|
Unfavorable |
|
Unfavorable |
||
Total noninterest income |
$ |
683 |
|
|
$ |
915 |
|
|
$ |
1,401 |
|
(25.4 |
)% |
|
(51.2 |
)% |
Noninterest income decreased
|
For the Six Months Ended |
|
|
||||||
Noninterest income |
|
|
|
|
|
||||
Bank owned life insurance |
$ |
662 |
|
|
$ |
573 |
|
15.5 |
% |
Service charges and fees |
|
799 |
|
|
|
647 |
|
23.5 |
% |
Gains and fees from sales of loans |
|
366 |
|
|
|
1,656 |
|
(77.9 |
)% |
Other |
|
(229 |
) |
|
|
51 |
|
Unfavorable |
|
Total noninterest income |
$ |
1,598 |
|
|
$ |
2,927 |
|
(45.4 |
)% |
Noninterest income decreased
NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS - QTD (unaudited) (Dollars in thousands) |
|||||||||||||||||
|
For the Quarter Ended |
||||||||||||||||
|
|
|
|
||||||||||||||
|
Average
|
|
Interest |
|
Yield/
|
|
Average
|
|
Interest |
|
Yield/
|
||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and Fed funds sold |
$ |
273,301 |
|
$ |
3,429 |
|
5.05 |
% |
|
$ |
227,777 |
|
$ |
3,023 |
|
5.32 |
% |
Securities(1) |
|
137,360 |
|
|
1,139 |
|
3.32 |
|
|
|
128,576 |
|
|
955 |
|
2.97 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
1,901,189 |
|
|
27,654 |
|
5.75 |
|
|
|
1,935,058 |
|
|
27,099 |
|
5.54 |
|
Residential real estate |
|
49,046 |
|
|
772 |
|
6.30 |
|
|
|
56,981 |
|
|
643 |
|
4.51 |
|
Construction |
|
159,184 |
|
|
2,871 |
|
7.14 |
|
|
|
206,844 |
|
|
3,691 |
|
7.06 |
|
Commercial business |
|
523,382 |
|
|
11,028 |
|
8.34 |
|
|
|
557,482 |
|
|
10,646 |
|
7.55 |
|
Consumer |
|
42,335 |
|
|
735 |
|
6.98 |
|
|
|
29,326 |
|
|
500 |
|
6.84 |
|
Total loans |
|
2,675,136 |
|
|
43,060 |
|
6.37 |
|
|
|
2,785,691 |
|
|
42,579 |
|
6.05 |
|
|
|
5,655 |
|
|
118 |
|
8.42 |
|
|
|
5,610 |
|
|
98 |
|
7.00 |
|
Total earning assets |
|
3,091,452 |
|
$ |
47,746 |
|
6.11 |
% |
|
|
3,147,654 |
|
$ |
46,655 |
|
5.86 |
% |
Other assets |
|
95,453 |
|
|
|
|
|
|
96,603 |
|
|
|
|
||||
Total assets |
$ |
3,186,905 |
|
|
|
|
|
$ |
3,244,257 |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Liabilities and shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||||
NOW |
$ |
107,310 |
|
$ |
49 |
|
0.18 |
% |
|
$ |
98,048 |
|
$ |
42 |
|
0.18 |
% |
Money market |
|
833,489 |
|
|
8,552 |
|
4.13 |
|
|
|
902,225 |
|
|
8,083 |
|
3.59 |
|
Savings |
|
90,987 |
|
|
688 |
|
3.04 |
|
|
|
112,585 |
|
|
860 |
|
3.06 |
|
Time |
|
1,291,595 |
|
|
15,388 |
|
4.79 |
|
|
|
1,298,170 |
|
|
11,792 |
|
3.64 |
|
Total interest bearing deposits |
|
2,323,381 |
|
|
24,677 |
|
4.27 |
|
|
|
2,411,028 |
|
|
20,777 |
|
3.46 |
|
Borrowed Money |
|
159,288 |
|
|
1,783 |
|
4.43 |
|
|
|
163,138 |
|
|
1,738 |
|
4.21 |
|
Total interest bearing liabilities |
|
2,482,669 |
|
$ |
26,460 |
|
4.29 |
% |
|
|
2,574,166 |
|
$ |
22,515 |
|
3.51 |
% |
Noninterest bearing deposits |
|
368,516 |
|
|
|
|
|
|
375,514 |
|
|
|
|
||||
Other liabilities |
|
63,177 |
|
|
|
|
|
|
46,565 |
|
|
|
|
||||
Total liabilities |
|
2,914,362 |
|
|
|
|
|
|
2,996,245 |
|
|
|
|
||||
Shareholders' equity |
|
272,543 |
|
|
|
|
|
|
248,012 |
|
|
|
|
||||
Total liabilities and shareholders' equity |
$ |
3,186,905 |
|
|
|
|
|
$ |
3,244,257 |
|
|
|
|
||||
Net interest income(2) |
|
|
$ |
21,286 |
|
|
|
|
|
$ |
24,140 |
|
|
||||
Interest rate spread |
|
|
|
|
1.82 |
% |
|
|
|
|
|
2.36 |
% |
||||
Net interest margin(3) |
|
|
|
|
2.75 |
% |
|
|
|
|
|
3.07 |
% |
(1) |
Average balances and yields for securities are based on amortized cost. |
|
(2) |
The adjustment for securities and loans taxable equivalency amounted to |
|
(3) |
Annualized net interest income as a percentage of earning assets. |
|
(4) |
Yields are calculated using the contractual day count convention for each respective product type. |
NET INTEREST MARGIN ANALYSIS ON A FULLY TAX EQUIVALENT BASIS - YTD (unaudited) (Dollars in thousands) |
|||||||||||||||||
|
For the Six Months Ended |
||||||||||||||||
|
|
|
|
||||||||||||||
|
Average
|
|
Interest |
|
Yield/
|
|
Average
|
|
Interest |
|
Yield/
|
||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and Fed funds sold |
$ |
282,981 |
|
$ |
7,255 |
|
5.16 |
% |
|
$ |
271,328 |
|
$ |
6,590 |
|
4.90 |
% |
Securities(1) |
|
136,049 |
|
|
2,199 |
|
3.23 |
|
|
|
129,225 |
|
|
1,912 |
|
2.96 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
1,911,896 |
|
|
56,295 |
|
5.82 |
|
|
|
1,926,852 |
|
|
52,125 |
|
5.38 |
|
Residential real estate |
|
49,624 |
|
|
1,490 |
|
6.01 |
|
|
|
58,207 |
|
|
1,286 |
|
4.42 |
|
Construction |
|
160,080 |
|
|
5,844 |
|
7.22 |
|
|
|
186,684 |
|
|
6,651 |
|
7.09 |
|
Commercial business |
|
520,188 |
|
|
21,314 |
|
8.10 |
|
|
|
549,963 |
|
|
21,394 |
|
7.74 |
|
Consumer |
|
41,150 |
|
|
1,442 |
|
7.05 |
|
|
|
23,971 |
|
|
749 |
|
6.30 |
|
Total loans |
|
2,682,938 |
|
|
86,385 |
|
6.37 |
|
|
|
2,745,677 |
|
|
82,205 |
|
5.95 |
|
|
|
5,678 |
|
|
239 |
|
8.44 |
|
|
|
5,442 |
|
|
193 |
|
7.14 |
|
Total earning assets |
|
3,107,646 |
|
$ |
96,078 |
|
6.12 |
% |
|
|
3,151,672 |
|
$ |
90,900 |
|
5.74 |
% |
Other assets |
|
93,179 |
|
|
|
|
|
|
90,427 |
|
|
|
|
||||
Total assets |
$ |
3,200,825 |
|
|
|
|
|
$ |
3,242,099 |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Liabilities and shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||||
NOW |
$ |
99,493 |
|
$ |
88 |
|
0.18 |
% |
|
$ |
95,494 |
|
$ |
81 |
|
0.17 |
% |
Money market |
|
858,670 |
|
|
17,698 |
|
4.14 |
|
|
|
905,021 |
|
|
14,468 |
|
3.22 |
|
Savings |
|
91,979 |
|
|
1,402 |
|
3.06 |
|
|
|
124,387 |
|
|
1,586 |
|
2.57 |
|
Time |
|
1,304,332 |
|
|
30,851 |
|
4.76 |
|
|
|
1,275,417 |
|
|
21,675 |
|
3.43 |
|
Total interest bearing deposits |
|
2,354,474 |
|
|
50,039 |
|
4.27 |
|
|
|
2,400,319 |
|
|
37,810 |
|
3.18 |
|
Borrowed Money |
|
159,257 |
|
|
3,555 |
|
4.42 |
|
|
|
162,215 |
|
|
3,454 |
|
4.24 |
|
Total interest bearing liabilities |
|
2,513,731 |
|
$ |
53,594 |
|
4.29 |
% |
|
|
2,562,534 |
|
$ |
41,264 |
|
3.25 |
% |
Noninterest bearing deposits |
|
352,768 |
|
|
|
|
|
|
389,608 |
|
|
|
|
||||
Other liabilities |
|
62,775 |
|
|
|
|
|
|
45,494 |
|
|
|
|
||||
Total liabilities |
|
2,929,274 |
|
|
|
|
|
|
2,997,636 |
|
|
|
|
||||
Shareholders' equity |
|
271,551 |
|
|
|
|
|
|
244,463 |
|
|
|
|
||||
Total liabilities and shareholders' equity |
$ |
3,200,825 |
|
|
|
|
|
$ |
3,242,099 |
|
|
|
|
||||
Net interest income(2) |
|
|
$ |
42,484 |
|
|
|
|
|
$ |
49,636 |
|
|
||||
Interest rate spread |
|
|
|
|
1.83 |
% |
|
|
|
|
|
2.49 |
% |
||||
Net interest margin(3) |
|
|
|
|
2.73 |
% |
|
|
|
|
|
3.15 |
% |
(1) |
Average balances and yields for securities are based on amortized cost. |
|
(2) |
The adjustment for securities and loans taxable equivalency amounted to |
|
(3) |
Annualized net interest income as a percentage of earning assets. |
|
(4) |
Yields are calculated using the contractual day count convention for each respective product type. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240724575735/en/
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or
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