Bank of Commerce Holdings (NASDAQ: BOCH) (the “Company”), a $1.829
billion asset bank holding company and parent company of Merchants
Bank of Commerce (the “Bank”), today announced financial results
for the quarter ended March 31, 2021. Net income for the quarter
ended March 31, 2021 was $4.9 million or $0.29 per share – diluted,
compared with net income of $916 thousand or $0.05 per share –
diluted for the same period of 2020.
Significant Items for the First Quarter of
2021:
- The Bank continued to experience
significant growth in deposits, which increased $71 million during
the quarter.
- Loans, exclusive of PPP loans
increased $19 million during the quarter; a reversal of the decline
that occurred throughout 2020.
- The Company’s net interest margin
was 3.46% for the quarter; unchanged from the preceding
quarter.
- COVID-19 related credit concerns
have continued to moderate and no provision for loan and lease
losses was required.
- During the first quarter of 2021,
our largest nonaccrual borrowing relationship totaling $3.0 million
(43% of nonaccrual loans at December 31, 2020) was repaid. The
repayment included all principal (including $110 thousand recovery
for an amount previously charged-off) $251 thousand of previously
unrecorded interest and $80 thousand of reimbursed legal, appraisal
and title fees.
Randall S. Eslick, President and CEO commented: “Our first
quarter financial performance is a very positive start to the year
and our growth in loans and deposits reflects the increased
economic activity throughout our markets. The medical response to
the pandemic has been quite effective, our concerns of last year
regarding asset quality have moderated and our outlook on
profitability for 2021 remains upbeat.”
Financial Highlights for the First Quarter of 2021
Compared to Prior Quarter:
- Net income of $4.9 million ($0.29
per share – diluted) was a decrease of $152 thousand ($0.01 per
share – diluted) (3%) from $5.1 million ($0.30 per share – diluted)
earned during the prior quarter.
- Return on average assets decreased
to 1.11% compared to 1.14% for the prior quarter.
- Return on average equity decreased
to 11.20% compared to 11.56% for the prior quarter.
- Net interest income decreased $138
thousand (1%) to $14.4 million compared to $14.6 million for the
prior quarter.
- Net interest margin of 3.46% was
unchanged compared to the prior quarter.
- Average loans totaled $1.140
billion, a decrease of $32 million (11% annualized) compared to
average loans for the prior quarter.
- Average earning assets totaled
$1.692 billion, an increase of $18 million (4% annualized) compared
to average earning assets for the prior quarter.
- Average deposits totaled $1.571
billion, an increase of $16 million (4% annualized) compared to
average deposits for the prior quarter.
- Average non-maturing deposits
totaled $1.437 billion, an increase of $20 million (6% annualized)
compared to the prior quarter.
- Average certificates of deposit
totaled $134.5 million, a decrease of $3.9 million (11% annualized)
compared to the prior quarter.
- The Company’s efficiency ratio was
57.1% compared to 54.8% for the prior quarter.
- Nonperforming assets at March 31,
2021 totaled $3.9 million or 0.21% of total assets, a decrease of
$3.1 million (44%) since December 31, 2020. The decrease in
nonperforming assets was due to a $3.0 million nonaccrual borrowing
relationship that was repaid during the first quarter of 2021.
- Book value per common share was
$10.50 at March 31, 2021 compared to $10.58 at December 31,
2020.
- Tangible book value per common share
was $9.58 at March 31, 2021 compared to $9.64 at December 31,
2020.
Financial Highlights for the First Quarter of 2021
Compared to the Same Quarter a Year Previous:
- Net income of $4.9 million was an
increase of $4.0 million (437%) from $916 thousand earned during
the same period in the prior year. Earnings of $0.29 per share –
diluted was an increase of $0.24 (480%) per share from $0.05 per
share – diluted earned during the same period in the prior. The
prior year was impacted by:
- $2.9 million provision for loan and
lease losses.
- $1.1 million in non-recurring costs
associated with the termination of a technology management services
contract and a severance agreement; both previously announced.
- Return on average assets increased
to 1.11% compared to 0.25% for the same period in the prior
year.
- Return on average equity increased
to 11.20% compared to 2.14% for the same period in the prior
year.
- Net interest income increased $1.4
million (11%) to $14.4 million compared to $13.0 million for the
same period in the prior year.
- Net interest margin declined to
3.46% compared to 3.86% for the same period in the prior year.
- Average loans totaled $1.140
billion, an increase of $107 million (10%) compared to average
loans for the same period in the prior year.
- Average earning assets totaled
$1.692 billion, an increase of $339 million (25%) compared to
average earning assets for the same period in the prior year.
- Average deposits totaled $1.571
billion, an increase of $327 million (26%) compared to average
deposits for the same period in the prior year.
- Average non-maturing deposits
totaled $1.437 billion, an increase of $339 million (31%) compared
to the same period in the prior year.
- Average certificates of deposit
totaled $134.5 million, a decrease of $12.7 million (9%) compared
to the same period in the prior year.
- The Company’s efficiency ratio was
57.1% compared to 70.5% for the same period in the prior year.
- The Company’s efficiency ratio of
70.5% for the first quarter of 2020 included $1.1 million of
non-recurring costs, which increased the efficiency ratio by
8.0%.
- Nonperforming assets at March 31,
2021 totaled $3.9 million or 0.21% of total assets, a decrease of
$1.3 million (25%) since March 31, 2020.
- Book value per common share was
$10.50 at March 31, 2021 compared to $9.86 at March 31, 2020.
- Tangible book value per common share
was $9.58 at March 31, 2021 compared to $8.89 at March 31,
2020.
Impact of COVID-19:
- During 2020, we funded 606 loans totaling $163.5 million under
the first Small Business Administration Paycheck Protection Program
(“PPP”). We continue to process loan forgiveness applications, and
at March 31, 2021, we have 228 loans totaling $79.0 million
remaining compared to 487 loans totaling $130.8 million at December
31, 2020.
- During the first quarter of 2021, we funded an additional 196
loans totaling $38.9 million under the SBA’s second PPP loan
program. The application period for the second PPP loan program
ends on May 31, 2021.
- We have experienced significant increases in deposit balances
during the past year. All PPP loan funds were deposited into
customer accounts at our bank and customer behavior has emphasized
savings during the economic slowdown.
- During the first quarter of 2021, the SBA extended their debt
relief program and resumed making principal and interest payments
on all of our SBA 7(a) loans which totaled $29.8 million at March
31, 2021. Payment assistance varies by borrower, will continue for
no more than eight months and is limited to a maximum $9 thousand
per borrower per month.
- At March 31, 2021, approximately 35% of our workforce is
working remotely.
- As of April 12, 2021, all of our offices have returned to a
pre-pandemic operating hours.
Forward-Looking Statements
Bank of Commerce Holdings wishes to take advantage of the Safe
Harbor provisions included in the Private Securities Litigation
Reform Act of 1995. This news release includes statements by the
Company, which describe management’s expectations and developments,
which may not be based on historical facts and are “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended and Section 21B of the Securities Act of 1934,
as amended. Future events are difficult to predict, and the
expectations described above are necessarily subject to risk and
uncertainty that may cause actual results to differ materially and
adversely. In addition to discussions about risks and uncertainties
set forth from time to time in the Company's public filings,
factors that may cause actual results to differ materially from
those contemplated by such forward looking statements include,
among others, the following possibilities: (1) local, national and
international economic conditions are less favorable than expected
or have a more direct and pronounced effect on the Company than
expected and adversely affect the Company's ability to continue its
internal growth at historical rates and maintain the quality of its
earning assets; (2) changes in interest rates reduce interest
margins more than expected and negatively affect funding sources;
(3) projected business increases following strategic expansion or
opening or acquiring new banks and/or branches are lower than
expected; (4) our concentration in lending tied to real estate
exposes us to the adverse effects of material increases in interest
rates, declines in the general economy, tightening credit markets
or declines in real estate values; (5) competitive pressure among
financial institutions increases significantly; (6) legislation or
regulatory requirements or changes adversely affect the businesses
in which the Company is engaged; and (7) technological changes
could expose us to new risks.
TABLE 1 |
SELECTED FINANCIAL INFORMATION - UNAUDITED |
(dollars in thousands except per share data) |
|
|
For The Three Months Ended |
Net income, average
assets and |
March 31, |
|
|
December 31, |
average shareholders' equity |
2021 |
|
|
2020 |
|
|
2020 |
Net income |
$ |
4,920 |
|
|
$ |
916 |
|
|
$ |
5,072 |
|
Average total assets |
$ |
1,790,447 |
|
|
$ |
1,454,019 |
|
|
$ |
1,774,937 |
|
Average total earning
assets |
$ |
1,692,281 |
|
|
$ |
1,353,098 |
|
|
$ |
1,674,544 |
|
Average shareholders'
equity |
$ |
178,162 |
|
|
$ |
172,120 |
|
|
$ |
174,520 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected performance ratios |
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
1.11 |
% |
|
|
0.25 |
% |
|
|
1.14 |
% |
Return on average equity |
|
11.20 |
% |
|
|
2.14 |
% |
|
|
11.56 |
% |
Efficiency ratio |
|
57.1 |
% |
|
|
70.5 |
% |
|
|
54.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Share and per share amounts |
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares - basic (1) |
|
16,706 |
|
|
|
17,695 |
|
|
|
16,663 |
|
Weighted average shares -
diluted (1) |
|
16,778 |
|
|
|
17,747 |
|
|
|
16,731 |
|
Earnings per share -
basic |
$ |
0.29 |
|
|
$ |
0.05 |
|
|
$ |
0.30 |
|
Earnings per share -
diluted |
$ |
0.29 |
|
|
$ |
0.05 |
|
|
$ |
0.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At March 31, |
|
|
At December 31, |
Share and per share amounts |
2021 |
|
|
2020 |
|
|
2020 |
Common shares outstanding (2) |
|
16,876 |
|
|
|
16,796 |
|
|
|
16,801 |
|
Book value per common share
(2) |
$ |
10.50 |
|
|
$ |
9.86 |
|
|
$ |
10.58 |
|
Tangible book value per common
share (2)(3) |
$ |
9.58 |
|
|
$ |
8.89 |
|
|
$ |
9.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital ratios (4) |
|
|
|
|
|
|
|
|
|
|
Bank of Commerce Holdings |
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital
ratio |
|
12.99 |
% |
|
|
12.02 |
% |
|
|
13.12 |
% |
Tier 1 capital ratio |
|
13.81 |
% |
|
|
12.85 |
% |
|
|
13.97 |
% |
Total capital ratio |
|
15.87 |
% |
|
|
14.93 |
% |
|
|
16.06 |
% |
Tier 1 leverage ratio |
|
9.61 |
% |
|
|
10.78 |
% |
|
|
9.46 |
% |
Tangible common equity ratio
(5) |
|
8.91 |
% |
|
|
10.38 |
% |
|
|
9.27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Merchants Bank of
Commerce |
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital
ratio |
|
14.41 |
% |
|
|
13.66 |
% |
|
|
14.58 |
% |
Tier 1 capital ratio |
|
14.41 |
% |
|
|
13.66 |
% |
|
|
14.58 |
% |
Total capital ratio |
|
15.66 |
% |
|
|
14.91 |
% |
|
|
15.83 |
% |
Tier 1 leverage ratio |
|
10.03 |
% |
|
|
11.45 |
% |
|
|
9.86 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes
unvested restricted shares issued in accordance with the Company's
equity incentive plan, as they are non-participative in dividends
or voting rights. |
(2) Includes
unvested restricted shares issued in accordance with the Company's
equity incentive plan. |
(3) Book value
per share is computed by dividing total shareholders’ equity by
shares outstanding. Tangible book value per share is computed by
dividing total shareholders’ equity less goodwill and core deposit
intangible, net by shares outstanding. Management believes that
tangible book value per share is meaningful because it is a measure
that the Company and investors commonly use to assess capital
adequacy. |
(4) The Company
and the Bank continue to meet all capital adequacy requirements to
which they are subject. |
(5) Management
believes the tangible common equity ratio is a useful measure of
capital adequacy because it provides a meaningful base for
period-to-period and company-to-company comparisons, which
management believes will assist investors in assessing the capital
of the Company and the ability of the Company to absorb potential
losses. The tangible common equity ratio is calculated as total
shareholders' equity less goodwill and core deposit intangible, net
divided by total assets less goodwill and core deposit intangible,
net. |
BALANCE SHEET OVERVIEW
As of March 31, 2021, the Company had total consolidated assets
of $1.829 billion, gross loans of $1.146 billion, allowance for
loan and lease losses (“ALLL”) of $17 million, total deposits of
$1.614 billion, and shareholders’ equity of $177 million. Certain
amounts for prior periods have been reclassified to conform to the
current presentation. The results of reclassifications are not
considered material and have no effect on previously reported
equity or net income.
TABLE 2 |
LOAN BALANCES BY TYPE - UNAUDITED |
(dollars in thousands) |
|
|
At March 31, |
|
|
At December 31, |
|
|
|
% of |
|
|
|
% of |
|
Change |
|
|
|
% of |
|
2021 |
|
|
Total |
|
2020 |
|
|
Total |
|
Amount |
|
% |
|
2020 |
|
|
Total |
Commercial |
$ |
117,597 |
|
|
10 |
% |
|
$ |
138,870 |
|
|
13 |
% |
|
$ |
(21,273 |
) |
|
(15 |
) |
% |
|
$ |
115,559 |
|
|
10 |
% |
Paycheck Protection Program
("PPP") |
|
117,991 |
|
|
10 |
|
|
|
— |
|
|
— |
|
|
|
117,991 |
|
|
100 |
|
% |
|
|
130,814 |
|
|
11 |
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land development |
|
32,145 |
|
|
3 |
|
|
|
34,394 |
|
|
3 |
|
|
|
(2,249 |
) |
|
(7 |
) |
% |
|
|
44,549 |
|
|
4 |
|
Non-owner occupied |
|
592,157 |
|
|
52 |
|
|
|
550,606 |
|
|
53 |
|
|
|
41,551 |
|
|
8 |
|
% |
|
|
550,020 |
|
|
48 |
|
Owner occupied |
|
165,367 |
|
|
14 |
|
|
|
180,765 |
|
|
17 |
|
|
|
(15,398 |
) |
|
(9 |
) |
% |
|
|
172,967 |
|
|
15 |
|
Residential real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individual Tax Identification Number ("ITIN") |
|
27,839 |
|
|
2 |
|
|
|
31,998 |
|
|
3 |
|
|
|
(4,159 |
) |
|
(13 |
) |
% |
|
|
29,035 |
|
|
3 |
|
1-4 family mortgage |
|
54,562 |
|
|
5 |
|
|
|
62,533 |
|
|
6 |
|
|
|
(7,971 |
) |
|
(13 |
) |
% |
|
|
55,925 |
|
|
5 |
|
Equity lines |
|
18,600 |
|
|
2 |
|
|
|
23,158 |
|
|
2 |
|
|
|
(4,558 |
) |
|
(20 |
) |
% |
|
|
18,894 |
|
|
2 |
|
Consumer and other |
|
19,685 |
|
|
2 |
|
|
|
29,921 |
|
|
3 |
|
|
|
(10,236 |
) |
|
(34 |
) |
% |
|
|
21,969 |
|
|
2 |
|
Gross loans |
|
1,145,943 |
|
|
100 |
% |
|
|
1,052,245 |
|
|
100 |
% |
|
|
93,698 |
|
|
9 |
|
% |
|
|
1,139,732 |
|
|
100 |
% |
Deferred (fees) and costs |
|
143 |
|
|
|
|
|
|
2,129 |
|
|
|
|
|
|
(1,986 |
) |
|
|
|
|
|
229 |
|
|
|
|
Loans, net of deferred fees and costs |
|
1,146,086 |
|
|
|
|
|
|
1,054,374 |
|
|
|
|
|
|
91,712 |
|
|
|
|
|
|
1,139,961 |
|
|
|
|
Allowance for loan and lease
losses |
|
(17,027 |
) |
|
|
|
|
|
(15,067 |
) |
|
|
|
|
|
(1,960 |
) |
|
|
|
|
|
(16,910 |
) |
|
|
|
Net loans |
$ |
1,129,059 |
|
|
|
|
|
$ |
1,039,307 |
|
|
|
|
|
$ |
89,752 |
|
|
|
|
|
$ |
1,123,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans during the
quarter |
$ |
1,140,315 |
|
|
|
|
|
$ |
1,033,689 |
|
|
|
|
|
$ |
106,626 |
|
|
10 |
|
% |
|
$ |
1,172,705 |
|
|
|
|
Average loans during the
quarter (excluding PPP) |
$ |
1,017,123 |
|
|
|
|
|
$ |
1,033,689 |
|
|
|
|
|
$ |
(16,566 |
) |
|
(2 |
) |
% |
|
$ |
1,024,324 |
|
|
|
|
Average yield on loans during
the quarter |
|
4.70 |
|
% |
|
|
|
|
4.80 |
|
% |
|
|
|
|
(0.10 |
) |
|
(2 |
) |
% |
|
|
4.59 |
|
% |
|
|
Average yield on loans during
the quarter (excluding PPP) |
|
4.60 |
|
% |
|
|
|
|
4.80 |
|
% |
|
|
|
|
(0.20 |
) |
|
(4 |
) |
% |
|
|
4.67 |
|
% |
|
|
Average yield on loans year to
date |
|
4.70 |
|
% |
|
|
|
|
4.80 |
|
% |
|
|
|
|
(0.10 |
) |
|
(2 |
) |
% |
|
|
4.57 |
|
% |
|
|
Average yield on loans year to
date (excluding PPP) |
|
4.60 |
|
% |
|
|
|
|
4.80 |
|
% |
|
|
|
|
(0.20 |
) |
|
(4 |
) |
% |
|
|
4.75 |
|
% |
|
|
The Company recorded gross loan balances of $1.146 billion at
March 31, 2021, compared with $1.052 billion and $1.140 billion at
March 31, 2020 and December 31, 2020, respectively, an increase of
$94 million and $6 million, respectively. The improving economic
environment is reflected in the growth of our gross loans
(excluding PPP loans) which increased $19.0 million (8% annualized)
during the quarter.
Gross loan balances in the table above include a net fair value
discount for loans acquired from Merchants of $810 thousand, $1.5
million and $920 thousand at March 31, 2021, March 31, 2020 and
December 31, 2020, respectively. We recorded $110 thousand, $163
thousand and $141 thousand in accretion of the discount for these
loans during the quarters ended March 31, 2021, March 31, 2020 and
December 31, 2020, respectively.
We have funded 802 loans totaling $202.4 million under the two
PPP loan programs through March 31, 2021.
First PPP Loan Program
We originated 606 loans totaling $163.5 million in the first PPP
loan program. At March 31, 2021, we have 228 loans totaling $79.0
million in the program. The majority of the loans under the first
program have a two-year term over which the loan fee income (net of
loan origination costs) is earned. When a PPP loan is repaid prior
to maturity, all unamortized fees and cost associated with the loan
are accelerated into income. During the current quarter, 259 loans
totaling $51.8 million were repaid and we recognized $1.0 million
in accelerated net fee income compared to 119 loans repaid totaling
$32.7 million and $664 thousand in accelerated net fee income in
the prior quarter. At March 31, 2021, net loan fees totaling $842
thousand remain to be earned and we anticipate that most of it will
be recognized during the second quarter of 2021.
Second PPP Loan Program
During the first quarter of 2021, the SBA announced a second PPP
loan program. The SBA’s second PPP loan program provides first draw
PPP loans to borrowers who were ineligible under the first PPP loan
program (sole proprietors, ITIN business owners, small business
owners with non-fraud felony convictions and small business owners
who have struggled with student loan debt) and allows second draw
PPP loans to qualifying businesses that received a first draw under
SBA’s first PPP loan program. The loans are available until May 31,
2021, are limited to $2 million, have a five-year term and SBA has
increased the lender fees for loans under $50 thousand to
incentivize lenders to work with smaller borrowers. We have
originated 196 loans totaling $38.9 million in the new program and
we have an additional 52 applications totaling $9.3 million in
process at March 31, 2021. Of the 196 loans we originated in the
second program, 158 were made to borrowers receiving their second
draw PPP loan.
We anticipate that the loans in the second PPP loan program will
have a lower yield as loan net fee income will be recognized over a
five-year term instead of the two-year term of the first program.
Borrowers may submit a loan forgiveness application after using the
loan proceeds and submitting an application for forgiveness of
their first PPP loan. As of March 31, 2021, we have not accepted
any forgiveness applications for loans funded in the second
program. At March 31, 2021, loan fee income (net of loan
origination costs) totaling $1.3 million remains to be earned from
the loans in the second PPP loan program.
The following tables provide additional information on the PPP
loans by industry and by loan balance at March 31, 2021 for loans
in both PPP loan programs.
TABLE 3 |
PPP LOANS BY INDUSTRY - UNAUDITED |
(dollars in thousands) |
|
|
|
At March 31, 2021 |
|
Number |
|
Balance |
Construction |
70 |
|
$ |
55,204 |
Healthcare and Social
Assistance |
65 |
|
|
12,166 |
Professional, Scientific and
Tech Services |
59 |
|
|
8,161 |
Accommodation and Food
Services |
47 |
|
|
8,705 |
Admin, Support, Waste
Management and Remediation Services |
14 |
|
|
4,855 |
Primary Metal
Manufacturing |
7 |
|
|
3,438 |
Retail Trade |
31 |
|
|
2,232 |
Other |
131 |
|
|
23,230 |
Total |
424 |
|
$ |
117,991 |
TABLE 4 |
PPP LOANS BY LOAN SIZE - UNAUDITED |
(dollars in thousands) |
|
At March 31, 2021 |
|
Balance |
|
Number |
|
Average Loan Size |
$50,000 or less |
$ |
3,427 |
|
154 |
|
$ |
22 |
$50,001 to $150,000 |
|
11,205 |
|
136 |
|
$ |
82 |
$150,001 to $350,000 |
|
13,895 |
|
63 |
|
$ |
221 |
$350,001 to $1,999,999 |
|
44,464 |
|
58 |
|
$ |
767 |
$2,000,000 or greater |
|
45,000 |
|
13 |
|
$ |
3,462 |
Total |
$ |
117,991 |
|
424 |
|
$ |
278 |
The following table presents the status of our loans in the
forgiveness process.
TABLE 5 |
PPP LOANS FORGIVENESS APPLICATION STATUS -
UNAUDITED |
(dollars in thousands) |
|
|
At March 31, 2021 |
|
At December 31, 2020 |
|
Balance |
|
Number |
|
Average Loan Size |
|
Balance |
|
Number |
|
Average Loan Size |
Borrower has not started application |
$ |
5,425 |
|
49 |
|
$ |
111 |
|
$ |
33,459 |
|
185 |
|
$ |
181 |
Borrower is working on
application |
|
9,345 |
|
65 |
|
$ |
144 |
|
|
31,277 |
|
136 |
|
$ |
230 |
Borrower has completed
application and the bank is reviewing it |
|
6,381 |
|
35 |
|
$ |
182 |
|
|
43,872 |
|
105 |
|
$ |
418 |
Bank has approved application
and submitted it to the SBA |
|
57,901 |
|
78 |
|
$ |
742 |
|
|
22,087 |
|
44 |
|
$ |
502 |
Remaining balance for loans
partially repaid (1) |
|
4 |
|
1 |
|
$ |
4 |
|
|
119 |
|
17 |
|
$ |
7 |
PPP loans not fully repaid |
|
79,056 |
|
228 |
|
$ |
347 |
|
|
130,814 |
|
487 |
|
$ |
269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayments |
|
84,437 |
|
378 |
|
$ |
223 |
|
|
32,679 |
|
119 |
|
$ |
275 |
Total PPP loans under first
PPP loan program |
|
163,493 |
|
606 |
|
$ |
270 |
|
|
163,493 |
|
606 |
|
$ |
270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New originations under second
PPP loan program |
|
38,935 |
|
196 |
|
$ |
199 |
|
|
— |
|
— |
|
$ |
— |
Total PPP loans originated by
bank |
$ |
202,428 |
|
802 |
|
$ |
252 |
|
$ |
163,493 |
|
606 |
|
$ |
270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Borrowers who
participated in the Economic Injury Disaster Loan (“EIDL”) program
had their forgiveness payment reduced by their EIDL advance. With
the second PPP loan program, this reduction was repealed and the
SBA remitted a reconciliation payment for the previously-deducted
EIDL advance amounts, plus interest. |
TABLE 6 |
CASH, CASH EQUIVALENTS, AND INVESTMENT SECURITIES -
UNAUDITED |
(dollars in thousands) |
|
|
At March 31, |
|
|
|
At December 31, |
|
|
|
% of |
|
|
|
% of |
|
Change |
|
|
|
% of |
|
2021 |
|
Total |
|
2020 |
|
Total |
|
Amount |
|
% |
|
2020 |
|
Total |
Cash and due from banks |
$ |
20,053 |
|
3 |
% |
|
$ |
21,127 |
|
6 |
% |
|
$ |
(1,074 |
) |
|
(5 |
) |
% |
|
$ |
19,875 |
|
4 |
% |
Interest-bearing deposits in
other banks |
|
74,804 |
|
12 |
|
|
|
22,813 |
|
7 |
|
|
|
51,991 |
|
|
228 |
|
% |
|
|
87,111 |
|
16 |
|
Total cash and cash equivalents |
|
94,857 |
|
15 |
|
|
|
43,940 |
|
13 |
|
|
|
50,917 |
|
|
116 |
|
% |
|
|
106,986 |
|
20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agencies |
|
31,060 |
|
5 |
|
|
|
36,043 |
|
11 |
|
|
|
(4,983 |
) |
|
(14 |
) |
% |
|
|
32,994 |
|
6 |
|
Obligations of state and political subdivisions |
|
128,841 |
|
21 |
|
|
|
63,263 |
|
19 |
|
|
|
65,578 |
|
|
104 |
|
% |
|
|
108,366 |
|
20 |
|
Residential mortgage backed securities and collateralized mortgage
obligations |
|
277,547 |
|
46 |
|
|
|
160,439 |
|
50 |
|
|
|
117,108 |
|
|
73 |
|
% |
|
|
240,478 |
|
42 |
|
Corporate securities |
|
— |
|
— |
|
|
|
2,983 |
|
1 |
|
|
|
(2,983 |
) |
|
(100 |
) |
% |
|
|
— |
|
— |
|
Commercial mortgage backed securities |
|
38,582 |
|
6 |
|
|
|
17,428 |
|
5 |
|
|
|
21,154 |
|
|
121 |
|
% |
|
|
28,074 |
|
5 |
|
Other asset backed securities |
|
41,345 |
|
7 |
|
|
|
4,921 |
|
1 |
|
|
|
36,424 |
|
|
740 |
|
% |
|
|
36,968 |
|
7 |
|
Total investment securities - AFS |
|
517,375 |
|
85 |
|
|
|
285,077 |
|
87 |
|
|
|
232,298 |
|
|
81 |
|
% |
|
|
446,880 |
|
80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash, cash equivalents
and investment securities |
$ |
612,232 |
|
100 |
% |
|
$ |
329,017 |
|
100 |
% |
|
$ |
283,215 |
|
|
86 |
|
% |
|
$ |
553,866 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average yield on
interest-bearing due from banks during the quarter |
|
0.11 |
% |
|
|
|
|
1.31 |
% |
|
|
|
|
(1.20 |
) |
|
|
|
|
|
0.12 |
% |
|
|
Average yield on investment
securities during the quarter - nominal |
|
1.84 |
% |
|
|
|
|
2.74 |
% |
|
|
|
|
(0.90 |
) |
|
|
|
|
|
2.06 |
% |
|
|
Average yield on investment
securities during the quarter - tax equivalent |
|
1.96 |
% |
|
|
|
|
2.84 |
% |
|
|
|
|
(0.88 |
) |
|
|
|
|
|
2.19 |
% |
|
|
As of March 31, 2021, we maintained noninterest-bearing cash
positions of $20.1 million and interest-bearing deposits of $74.8
million at the Federal Reserve Bank and correspondent banks. During
the current quarter, we successfully invested a large portion of
our increased liquidity into our investment portfolio.
Unprecedented deposit growth during the last year as a result of
PPP programs and customer behavior, which has placed a greater
emphasis on savings since the start of the pandemic combined with
the need to deploy excess cash, has led to a significant increase
in the size of our investment securities portfolio. Investment
securities totaled $517.4 million at March 31, 2021, compared with
$285.1 million and $446.9 million at March 31, 2020 and December
31, 2020, respectively. During the first quarter of 2021, we
purchased securities with a par value of $111.1 million and
weighted average yield of 1.56% (1.62% tax equivalent) and sold
securities with a par value of $11.6 million and weighted average
yield and tax equivalent yield of (0.19)%. The sales resulted in
net realized gain of $7 thousand for the quarter ended March 31,
2021. Investment purchases were comprised primarily of longer
duration municipal bonds and lower coupon, moderate-term mortgage
backed securities.
Average securities balances for the quarters ended March 31,
2021, March 31, 2020 and December 31, 2020 were $440.6 million,
$272.3 million and $377.4 million, respectively. Weighted average
yields on securities balances for those same periods were 1.84%,
2.74% and 2.06%, respectively.
At March 31, 2021, our net unrealized gains on
available-for-sale investment securities were $4.0 million compared
with net unrealized gains of $8.4 million and $10.6 million at
March 31, 2020 and December 31, 2020, respectively. The decline in
net unrealized gains were due to recent increases in market
interest rates.
TABLE 7 |
DEPOSITS BY TYPE - UNAUDITED |
(dollars in thousands) |
|
|
At March 31, |
|
|
|
At December 31, |
|
|
|
% of |
|
|
|
% of |
|
Change |
|
|
|
% of |
|
2021 |
|
Total |
|
2020 |
|
Total |
|
Amount |
|
% |
|
2020 |
|
Total |
Demand - noninterest-bearing |
$ |
603,991 |
|
37 |
% |
|
$ |
419,315 |
|
34 |
% |
|
$ |
184,676 |
|
|
44 |
|
% |
|
$ |
541,033 |
|
35 |
% |
Demand - interest-bearing |
|
290,687 |
|
18 |
|
|
|
231,276 |
|
19 |
|
|
|
59,411 |
|
|
26 |
|
% |
|
|
290,251 |
|
19 |
|
Money market |
|
425,251 |
|
26 |
|
|
|
314,687 |
|
25 |
|
|
|
110,564 |
|
|
35 |
|
% |
|
|
425,121 |
|
28 |
|
Total demand |
|
1,319,929 |
|
81 |
|
|
|
965,278 |
|
78 |
|
|
|
354,651 |
|
|
37 |
|
% |
|
|
1,256,405 |
|
82 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
160,834 |
|
10 |
|
|
|
133,552 |
|
11 |
|
|
|
27,282 |
|
|
20 |
|
% |
|
|
150,695 |
|
10 |
|
Total non-maturing
deposits |
|
1,480,763 |
|
91 |
|
|
|
1,098,830 |
|
89 |
|
|
|
381,933 |
|
|
35 |
|
% |
|
|
1,407,100 |
|
92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of deposit |
|
133,630 |
|
9 |
|
|
|
143,557 |
|
11 |
|
|
|
(9,927 |
) |
|
(7 |
) |
% |
|
|
135,679 |
|
8 |
|
Total deposits |
$ |
1,614,393 |
|
100 |
% |
|
$ |
1,242,387 |
|
100 |
% |
|
$ |
372,006 |
|
|
30 |
|
% |
|
$ |
1,542,779 |
|
100 |
% |
Total deposits at March 31, 2021, increased $372 million or 30%
to $1.614 billion compared to March 31, 2020 and increased $71.6
million or 19% annualized compared to December 31, 2020. Total
non-maturing deposits increased $381.9 million or 35% compared to
the same date a year ago and increased $73.7 million or 21%
annualized compared to December 31, 2020. The increase in
non-maturing deposits compared to the same period one year ago was
due to PPP loan program disbursements and changes in customer
behavior, which is placing greater emphasis on savings during the
economic slowdown. Management anticipates that depositor behavior
will change later in the year as economic conditions improve and
depositors begin to use the cash balances that have accumulated
over the past year. Certificates of deposit decreased $9.9 million
or 7% compared to the same date a year ago and decreased $2.0
million or 6% annualized compared to December 31, 2020. These
decreases reflect our decision to reduce reliance on public
deposits and depositor reaction to the low interest rate
environment.
The following table presents the average cost of
interest-bearing deposits, all deposits and all interest-bearing
liabilities for the periods indicated.
TABLE 8 |
AVERAGE COST OF FUNDS - UNAUDITED |
For The Three Months Ended |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
|
2019 |
|
2019 |
|
2019 |
Interest-bearing deposits |
0.26 |
% |
|
0.29 |
% |
|
0.36 |
% |
|
0.43 |
% |
|
0.53 |
% |
|
0.56 |
% |
|
0.56 |
% |
|
0.54 |
% |
Interest-bearing deposits and
noninterest-bearing demand |
0.16 |
% |
|
0.19 |
% |
|
0.23 |
% |
|
0.28 |
% |
|
0.35 |
% |
|
0.38 |
% |
|
0.38 |
% |
|
0.37 |
% |
All interest-bearing
liabilities |
0.32 |
% |
|
0.37 |
% |
|
0.44 |
% |
|
0.52 |
% |
|
0.65 |
% |
|
0.68 |
% |
|
0.68 |
% |
|
0.74 |
% |
All interest-bearing
liabilities and noninterest-bearing demand |
0.21 |
% |
|
0.24 |
% |
|
0.29 |
% |
|
0.34 |
% |
|
0.43 |
% |
|
0.46 |
% |
|
0.46 |
% |
|
0.52 |
% |
Equity
As detailed in Table 1, management believes the capital ratios
remain adequate for the Company’s risk profile.
In late 2019, we announced a program to repurchase 1.0 million
common shares which was later increased to 1.5 million common
shares. Between October of 2019 and April of 2020, all 1.5 million
shares were repurchased at a total cost of $13.6 million including
commissions, or an average of $9.11 per share. 1.4 million of the
common share repurchases under this plan were made during the first
quarter of 2020.
In late 2020, we announced a new share repurchase program to
repurchase up to 1.0 million shares of common stock over a period
ending December 31, 2021. As of March 31, 2021, no shares have been
repurchased under this plan.
INCOME STATEMENT OVERVIEW
TABLE 9 |
SUMMARY INCOME STATEMENT - UNAUDITED |
(dollars in thousands, except per share data) |
|
|
For The Three Months Ended |
|
March 31, |
|
Change |
|
December 31, |
|
Change |
|
2021 |
|
2020 |
|
Amount |
|
% |
|
2020 |
|
Amount |
|
% |
Interest income |
$ |
15,240 |
|
$ |
14,345 |
|
$ |
895 |
|
|
6 |
|
% |
|
$ |
15,519 |
|
$ |
(279 |
) |
|
(2 |
) |
% |
Interest expense |
|
822 |
|
|
1,359 |
|
|
(537 |
) |
|
(40 |
) |
% |
|
|
963 |
|
|
(141 |
) |
|
(15 |
) |
% |
Net interest income |
|
14,418 |
|
|
12,986 |
|
|
1,432 |
|
|
11 |
|
% |
|
|
14,556 |
|
|
(138 |
) |
|
(1 |
) |
% |
Provision for loan and lease
losses |
|
— |
|
|
2,850 |
|
|
(2,850 |
) |
|
(100 |
) |
% |
|
|
— |
|
|
— |
|
|
— |
|
% |
Noninterest income |
|
1,163 |
|
|
892 |
|
|
271 |
|
|
30 |
|
% |
|
|
1,016 |
|
|
147 |
|
|
14 |
|
% |
Noninterest expense |
|
8,897 |
|
|
9,783 |
|
|
(886 |
) |
|
(9 |
) |
% |
|
|
8,534 |
|
|
363 |
|
|
4 |
|
% |
Income before provision for
income taxes |
|
6,684 |
|
|
1,245 |
|
|
5,439 |
|
|
437 |
|
% |
|
|
7,038 |
|
|
(354 |
) |
|
(5 |
) |
% |
Provision for income taxes |
|
1,764 |
|
|
329 |
|
|
1,435 |
|
|
436 |
|
% |
|
|
1,966 |
|
|
(202 |
) |
|
(10 |
) |
% |
Net
income |
$ |
4,920 |
|
$ |
916 |
|
$ |
4,004 |
|
|
437 |
|
% |
|
$ |
5,072 |
|
$ |
(152 |
) |
|
(3 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic |
$ |
0.29 |
|
$ |
0.05 |
|
$ |
0.24 |
|
|
480 |
|
% |
|
$ |
0.30 |
|
$ |
(0.01 |
) |
|
(3 |
) |
% |
Weighted average shares -
basic |
|
16,706 |
|
|
17,695 |
|
|
(989 |
) |
|
(6 |
) |
% |
|
|
16,663 |
|
|
43 |
|
|
— |
|
% |
Earnings per share -
diluted |
$ |
0.29 |
|
$ |
0.05 |
|
$ |
0.24 |
|
|
480 |
|
% |
|
$ |
0.30 |
|
$ |
(0.01 |
) |
|
(3 |
) |
% |
Weighted average shares -
diluted |
|
16,778 |
|
|
17,747 |
|
|
(969 |
) |
|
(5 |
) |
% |
|
|
16,731 |
|
|
47 |
|
|
— |
|
% |
Dividends declared per common
share |
$ |
0.06 |
|
$ |
0.05 |
|
$ |
0.01 |
|
|
20 |
|
% |
|
$ |
0.06 |
|
$ |
— |
|
|
— |
|
% |
First Quarter of 2021 Compared with the First Quarter of
2020
Net income for the first quarter of 2021 increased $4.0 million
compared to the first quarter of 2020. In the current quarter, net
interest income was $1.4 million higher, provision for loan and
lease losses was $2.9 million lower, noninterest income was $271
thousand higher and noninterest expense was $886 thousand lower.
These positive changes were partially offset by a provision for
income taxes that was $1.4 million higher.
Net Interest Income
Net interest income increased $1.4 million compared to the same
period a year ago.
Interest income for the first quarter of 2021 increased $895
thousand or 6% to $15.2 million.
- During the first quarter of 2021, we
recognized $1.0 million in accelerated net fee income on PPP loans
forgiven or repaid during the quarter. These accelerated loan fees
increased the average yield on loans for the first quarter of 2021
by 36 basis points.
- PPP loans had an average balance of
$123.2 million and yield of 5.49% (2.20% excluding accelerated fee
income).
- Excluding PPP loans, interest and
fees on loans decreased $791 thousand due to a $16.6 million
decrease in average loan balances and a 20 basis point decrease in
average yield.
- During the first quarter of 2021, we
recognized $251 thousand in nonaccrual interest income as part of
the repayment of loans for our largest nonaccrual borrowing
relationship. The interest income recognized as part of that
repayment increased the average yield on loans for the first
quarter of 2021 by 9 basis points.
- Interest on investment securities
increased $143 thousand due to a $168.4 million increase in average
securities balances partially offset by a 90 basis point decrease
in average yield.
- Interest on interest-bearing
deposits due from banks decreased $125 thousand due to a 120 basis
point decrease in average yield that was partially offset by a
$64.2 million increase in average interest-bearing deposit
balances. During 2020, in response to the economic effects of the
COVID-19 pandemic, the Federal Reserve cut short-term interest
rates by 150 to 175 basis points and has provided guidance that it
expects interest rates to remain low for an extended period of
time.
Interest expense for the first quarter of 2021 decreased $537
thousand or 40% to $822 thousand.
- Interest expense on interest-bearing
deposits decreased $446 thousand. Average interest-bearing demand
and savings deposit balances increased $198.2 million, while
average certificate of deposit balances decreased $12.7 million.
The average rate paid on interest-bearing deposits decreased 27
basis points.
- Average FHLB borrowings were $3.9
million in the current quarter compared to $220 thousand during the
same period a year ago. The borrowings bore no interest under a
program offered by the FHLB and were fully repaid at March 31,
2021.
- Interest expense on other term debt
decreased $47 thousand. The average debt balance was essentially
unchanged, while the average rate paid decreased 187 basis
points.
- Interest expense on junior
subordinated debentures decreased $44 thousand. The average debt
balance was unchanged, while the average rate paid decreased 170
basis points.
Provision for Loan and Lease Losses
Many of our asset quality concerns from 2020 have moderated. No
provision for loan and lease losses was necessary for the current
quarter compared to a provision for loan and lease losses of $2.9
million in the same quarter a year ago. Nonaccrual loans decreased
25% since March 31, 2020 primarily due to the repayment of $3.0
million in principal from one commercial real estate loan
relationship. Net loan recoveries were $117 thousand for the
current quarter compared to net loan charge-offs of $14 thousand
during the same period a year ago. Most COVID-19 related loan
payment deferrals have ended with limited negative impact on
delinquencies. We have however recognized downgrades of certain
loans during the current quarter based on year-end financial data
received from some borrowers. A more in depth discussion of our
provision is provided below under the heading Provision for Loan
and Lease Losses.
Noninterest Income
Noninterest income for the three months ended March 31, 2021
increased $271 thousand compared to the same period a year
previous. The increase was primarily due to a $221 thousand legal
settlement, which was a partial recovery of an investment security
impairment loss recorded during the second quarter of 2016.
Noninterest Expense
Noninterest expense for the three months ended March 31, 2021
decreased $886 thousand compared to the same period a year
previous. The first quarter of 2020 included $1.1 million in
non-recurring costs. Excluding the non-recurring costs, noninterest
expense increased $214 thousand primarily due to accruals for
incentives made in the current quarter that were not made in the
same quarter one year ago.
The Company’s efficiency ratio was 57.1% for the first quarter
of 2021. The ratio during the same period in 2020 was 70.5%. The
Company’s efficiency ratio of 70.5% for the first quarter of 2020
included $1.1 million of non-recurring costs, which increased the
efficiency ratio by 8.0%.
Income Tax Provision
For the three months ended March 31, 2021, our income tax
provision of $1.8 million on pre-tax income of $6.7 million was an
effective tax rate of 26.4%. The tax provision for the first
quarter of the prior year was $329 thousand on pre-tax income of
$1.2 million for an effective rate of 26.4%.
First Quarter of 2021 Compared with the Fourth Quarter
of 2020
Net income for the first quarter of 2021 decreased $152 thousand
compared to the fourth quarter of 2020. In the current quarter, net
interest income was $138 thousand lower and noninterest expense was
$363 thousand higher. These negative variances were partially
offset by noninterest income that was $147 thousand higher and a
provision for income taxes that was $202 thousand lower.
Net Interest Income
Net interest income decreased $138 thousand over the prior
quarter.
Interest income for the three months ended March 31, 2021
decreased $279 thousand or 2% to $15.2 million.
- During the first quarter of 2021, we
recognized $1.0 million in accelerated net fee income on PPP loans
forgiven or repaid during the quarter compared to $664 thousand in
the prior quarter. These accelerated loan fees increased the
average yield on loans for the first quarter of 2021 and the fourth
quarter of 2020 by 36 basis points and 23 basis points,
respectively.
- PPP loans had an average balance of
$123.2 million and yield of 5.49% (2.20% excluding accelerated fee
income) for the first quarter of 2021 compared to an average
balance of $148.4 million and yield of 4.07% (2.29% excluding
accelerated fee income) for the prior quarter.
- Excluding PPP loans, interest and
fees on loans decreased $467 thousand due to a $7.2 million
decrease in average loan balances, a 7 basis point decrease in
average yield and a quarter that was two days shorter.
- During the first quarter of 2021, we
recognized $251 thousand in nonaccrual interest income as part of
the repayment of loans for our largest nonaccrual borrowing
relationship. The interest income recognized as part of that
repayment increased the average yield on loans for the first
quarter of 2021 by 9 basis points.
- Interest on investment securities
increased $45 thousand due to a $63.2 million increase in average
security balances partially offset by a 3 basis point decrease in
average yield.
- Interest on interest-bearing
deposits due from banks decreased $7 thousand due to a $13.1
million decrease in average balances and a 1 basis point decrease
in average yield.
Interest expense for the three months ended March 31, 2021
decreased $141 thousand or 15% to $822 thousand.
- Interest expense on interest-bearing
deposits decreased $98 thousand. Average interest-bearing demand
and savings deposit balances increased $10.3 million, while average
certificates of deposit decreased $3.9 million. The average rate
paid on interest-bearing deposits decreased 3 basis points. The
first quarter of 2021 was two days shorter than the fourth quarter
of 2020.
- Average FHLB borrowings were $3.9
million in the current quarter compared to $7.1 million in the
prior quarter. The borrowings bore no interest under a program
offered by the FHLB and were fully repaid at March 31, 2021.
- Interest expense on other term debt
decreased $42 thousand. The average debt balance was essentially
unchanged, while the average rate paid decreased 156 basis
points.
- Interest expense on junior
subordinated debentures decreased $1 thousand. The average debt
balance and average rate paid remained unchanged.
Provision for Loan and Lease Losses
During the first quarter of 2021, our largest nonaccrual
borrowing relationship was fully repaid resulting in the collection
of $3.0 million in principal, and a $110 thousand recovery for
amount charged-off in a prior year. We have however recognized
downgrades of certain loans during the current quarter based on
year-end financial data from some borrowers. No provision for loan
and lease losses was necessary for the current or prior quarter. A
more in depth discussion of our provision is provided below under
the heading Provision for Loan and Lease Losses.
Noninterest Income
Noninterest income for the three months ended March 31, 2021
increased $147 thousand compared to the prior quarter. The increase
was primarily due to a $221 thousand legal settlement, which was a
partial recovery of an investment security impairment loss recorded
during the second quarter of 2016.
Noninterest Expense
Noninterest expense for the three months ended March 31, 2021
increased $363 thousand compared to the prior quarter. The increase
was primarily due to increased payroll tax expense and increased
accruals for unused vacation offset by decreased incentive
accruals.
The Company’s efficiency ratio was 57.1% for the first quarter
of 2021 compared with 54.8% for the prior quarter.
Income Tax Provision
For the three months ended March 31, 2021, our income tax
provision of $1.8 million on pre-tax income of $6.7 million was an
effective tax rate of 26.4%. The income tax provision for the prior
quarter of $2.0 million on pre-tax income of $7.0 million was an
effective tax rate of 27.9%.
The tax provision of $2.0 million for the prior quarter included
$132 thousand applicable to earlier quarters, as deductible
operating losses and tax credits from our low-income housing
partnerships were lower than anticipated. The effective tax rate
excluding this $132 thousand was 26.1%.
Earnings Per Share
Diluted earnings per share were $0.29 for the three months ended
March 31, 2021 compared with diluted earnings per share of $0.05
for the same period a year ago and diluted earnings per share of
$0.30 for the prior period. Net income and weighted average shares
used to calculate earnings per share – diluted are summarized in
Table 9 presented earlier in this press release.
TABLE 10a |
NET INTEREST MARGIN - UNAUDITED |
(dollars in thousands) |
|
|
For The Three Months Ended |
|
March 31, 2021 |
|
March 31, 2020 |
|
December 31, 2020 |
|
Average |
|
|
|
|
Yield / |
|
Average |
|
|
|
|
Yield / |
|
Average |
|
|
|
|
Yield / |
|
Balance |
|
Interest(1) |
|
Rate (6) |
|
Balance |
|
Interest(1) |
|
Rate (6) |
|
Balance |
|
Interest(1) |
|
Rate (6) |
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans net of PPP (2) |
$ |
1,017,123 |
|
$ |
11,547 |
|
4.60 |
% |
|
$ |
1,033,689 |
|
$ |
12,338 |
|
4.80 |
% |
|
$ |
1,024,324 |
|
$ |
12,014 |
|
4.67 |
% |
PPP loans (3) |
|
123,192 |
|
|
1,668 |
|
5.49 |
% |
|
|
— |
|
|
— |
|
— |
% |
|
|
148,381 |
|
|
1,518 |
|
4.07 |
% |
Taxable securities |
|
358,291 |
|
|
1,485 |
|
1.68 |
% |
|
|
237,405 |
|
|
1,582 |
|
2.68 |
% |
|
|
304,242 |
|
|
1,484 |
|
1.94 |
% |
Tax-exempt securities (4) |
|
82,355 |
|
|
511 |
|
2.52 |
% |
|
|
34,869 |
|
|
271 |
|
3.13 |
% |
|
|
73,207 |
|
|
467 |
|
2.54 |
% |
Interest-bearing deposits in other banks |
|
111,320 |
|
|
29 |
|
0.11 |
% |
|
|
47,135 |
|
|
154 |
|
1.31 |
% |
|
|
124,390 |
|
|
36 |
|
0.12 |
% |
Average interest-earning
assets |
|
1,692,281 |
|
|
15,240 |
|
3.65 |
% |
|
|
1,353,098 |
|
|
14,345 |
|
4.26 |
% |
|
|
1,674,544 |
|
|
15,519 |
|
3.69 |
% |
Cash and due from banks |
|
21,744 |
|
|
|
|
|
|
|
|
21,987 |
|
|
|
|
|
|
|
|
22,413 |
|
|
|
|
|
|
Premises and equipment, net |
|
15,001 |
|
|
|
|
|
|
|
|
15,753 |
|
|
|
|
|
|
|
|
15,162 |
|
|
|
|
|
|
Goodwill |
|
11,671 |
|
|
|
|
|
|
|
|
11,671 |
|
|
|
|
|
|
|
|
11,671 |
|
|
|
|
|
|
Other intangible assets, net |
|
3,934 |
|
|
|
|
|
|
|
|
4,701 |
|
|
|
|
|
|
|
|
4,126 |
|
|
|
|
|
|
Other assets |
|
45,816 |
|
|
|
|
|
|
|
|
46,809 |
|
|
|
|
|
|
|
|
47,021 |
|
|
|
|
|
|
Average total assets |
$ |
1,790,447 |
|
|
|
|
|
|
|
$ |
1,454,019 |
|
|
|
|
|
|
|
$ |
1,774,937 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
$ |
295,388 |
|
|
58 |
|
0.08 |
% |
|
$ |
233,375 |
|
|
100 |
|
0.17 |
% |
|
$ |
283,213 |
|
|
57 |
|
0.08 |
% |
Money market |
|
425,113 |
|
|
195 |
|
0.19 |
% |
|
|
307,587 |
|
|
403 |
|
0.53 |
% |
|
|
430,014 |
|
|
237 |
|
0.22 |
% |
Savings |
|
154,199 |
|
|
48 |
|
0.13 |
% |
|
|
135,504 |
|
|
118 |
|
0.35 |
% |
|
|
151,223 |
|
|
53 |
|
0.14 |
% |
Certificates of deposit |
|
134,520 |
|
|
338 |
|
1.02 |
% |
|
|
147,241 |
|
|
464 |
|
1.27 |
% |
|
|
138,380 |
|
|
390 |
|
1.12 |
% |
Federal Home Loan Bank of San Francisco ("FHLB") borrowings |
|
3,889 |
|
|
— |
|
— |
% |
|
|
220 |
|
|
— |
|
0.21 |
% |
|
|
7,120 |
|
|
— |
|
— |
% |
Other borrowings |
|
10,000 |
|
|
137 |
|
5.56 |
% |
|
|
9,963 |
|
|
184 |
|
7.43 |
% |
|
|
9,999 |
|
|
179 |
|
7.12 |
% |
Junior subordinated debentures |
|
10,310 |
|
|
46 |
|
1.81 |
% |
|
|
10,310 |
|
|
90 |
|
3.51 |
% |
|
|
10,310 |
|
|
47 |
|
1.81 |
% |
Average interest-bearing
liabilities |
|
1,033,419 |
|
|
822 |
|
0.32 |
% |
|
|
844,200 |
|
|
1,359 |
|
0.65 |
% |
|
|
1,030,259 |
|
|
963 |
|
0.37 |
% |
Noninterest-bearing demand |
|
562,155 |
|
|
|
|
|
|
|
|
420,847 |
|
|
|
|
|
|
|
|
552,601 |
|
|
|
|
|
|
Other liabilities |
|
16,711 |
|
|
|
|
|
|
|
|
16,852 |
|
|
|
|
|
|
|
|
17,557 |
|
|
|
|
|
|
Shareholders’ equity |
|
178,162 |
|
|
|
|
|
|
|
|
172,120 |
|
|
|
|
|
|
|
|
174,520 |
|
|
|
|
|
|
Average liabilities and
shareholders’ equity |
$ |
1,790,447 |
|
|
|
|
|
|
|
$ |
1,454,019 |
|
|
|
|
|
|
|
$ |
1,774,937 |
|
|
|
|
|
|
Net interest income and net
interest margin (5) |
|
|
|
$ |
14,418 |
|
3.46 |
% |
|
|
|
|
$ |
12,986 |
|
3.86 |
% |
|
|
|
|
$ |
14,556 |
|
3.46 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Interest
income on loans, net of PPP includes net fees and costs of
approximately $204 thousand, $257 thousand, and $85 thousand for
the three months ended March 31, 2021 and 2020 and December 31,
2020, respectively. Interest income on PPP loans includes net fees
and costs of $1.4 million and $1.1 million for the three months
ended March 31, 2021 and December 31, 2020, respectively. |
(2) Loans, net of
PPP includes average nonaccrual loans of $6.2 million, $5.5 million
and $7.2 million for the three months ended March 31, 2021 and 2020
and December 31, 2020, respectively. |
(3) PPP loans
represent average gross loans and excludes deferred fees and
costs. |
(4) Interest
income and yields on tax-exempt securities are not presented on a
taxable equivalent basis. |
(5) Net interest
margin is net interest income expressed as a percentage of average
interest-earning assets. Net interest income for the three months
ended March 31, 2021 and 2020 and December 31, 2020 included $110
thousand, $163 thousand and $141 thousand in accretion of the
discount on the loans acquired from Merchants Holding Company,
which improved the net interest margin by four, six and five basis
points, respectively. |
(6) Yields and
rates are calculated by dividing the income or expense by the
average balance of the assets or liabilities, respectively. |
TABLE 11 |
ALLOWANCE FOR LOAN AND LEASE LOSSES ROLL FORWARD AND
IMPAIRED LOAN TOTALS - UNAUDITED |
(dollars in thousands) |
|
|
For The Three Months Ended |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
ALLL beginning balance |
$ |
16,910 |
|
|
|
$ |
16,873 |
|
|
|
$ |
16,089 |
|
|
|
$ |
15,067 |
|
|
|
$ |
12,231 |
|
|
Provision for loan and lease
losses charged to expense |
|
— |
|
|
|
|
— |
|
|
|
|
1,100 |
|
|
|
|
1,300 |
|
|
|
|
2,850 |
|
|
Loans charged-off |
|
(90 |
) |
|
|
|
(86 |
) |
|
|
|
(502 |
) |
|
|
|
(356 |
) |
|
|
|
(169 |
) |
|
Loan and lease loss
recoveries |
|
207 |
|
|
|
|
123 |
|
|
|
|
186 |
|
|
|
|
78 |
|
|
|
|
155 |
|
|
ALLL ending balance |
$ |
17,027 |
|
|
|
$ |
16,910 |
|
|
|
$ |
16,873 |
|
|
|
$ |
16,089 |
|
|
|
$ |
15,067 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At March 31, |
|
At December 31, |
|
At September 30, |
|
At June 30, |
|
At March 31, |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
Nonaccrual loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
1,520 |
|
|
|
$ |
1,535 |
|
|
|
$ |
1,549 |
|
|
|
$ |
7 |
|
|
|
$ |
39 |
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied |
|
626 |
|
|
|
|
640 |
|
|
|
|
1,712 |
|
|
|
|
1,717 |
|
|
|
|
— |
|
|
Owner occupied |
|
95 |
|
|
|
|
3,094 |
|
|
|
|
3,100 |
|
|
|
|
2,992 |
|
|
|
|
3,103 |
|
|
Residential real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ITIN |
|
1,529 |
|
|
|
|
1,585 |
|
|
|
|
1,574 |
|
|
|
|
1,738 |
|
|
|
|
1,878 |
|
|
1-4 family mortgage |
|
137 |
|
|
|
|
141 |
|
|
|
|
145 |
|
|
|
|
180 |
|
|
|
|
184 |
|
|
Consumer and other |
|
17 |
|
|
|
|
18 |
|
|
|
|
18 |
|
|
|
|
37 |
|
|
|
|
39 |
|
|
Total nonaccrual loans |
|
3,924 |
|
|
|
|
7,013 |
|
|
|
|
8,098 |
|
|
|
|
6,671 |
|
|
|
|
5,243 |
|
|
Accruing troubled debt
restructured loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
494 |
|
|
|
|
498 |
|
|
|
|
531 |
|
|
|
|
592 |
|
|
|
|
592 |
|
|
Residential real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ITIN |
|
3,420 |
|
|
|
|
3,466 |
|
|
|
|
3,597 |
|
|
|
|
3,642 |
|
|
|
|
3,891 |
|
|
Equity lines |
|
121 |
|
|
|
|
126 |
|
|
|
|
131 |
|
|
|
|
221 |
|
|
|
|
226 |
|
|
Total accruing restructured
loans |
|
4,035 |
|
|
|
|
4,090 |
|
|
|
|
4,259 |
|
|
|
|
4,455 |
|
|
|
|
4,709 |
|
|
Total impaired loans |
$ |
7,959 |
|
|
|
$ |
11,103 |
|
|
|
$ |
12,357 |
|
|
|
$ |
11,126 |
|
|
|
$ |
9,952 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans at period end |
$ |
1,145,943 |
|
|
|
$ |
1,139,732 |
|
|
|
$ |
1,206,065 |
|
|
|
$ |
1,206,340 |
|
|
|
$ |
1,052,245 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired loans to gross loans |
|
0.69 |
|
% |
|
|
0.97 |
|
% |
|
|
1.02 |
|
% |
|
|
0.92 |
|
% |
|
|
0.95 |
|
% |
Impaired loans to gross loans (excluding PPP) (1) |
|
0.77 |
|
% |
|
|
1.10 |
|
% |
|
|
1.19 |
|
% |
|
|
1.07 |
|
% |
|
|
0.95 |
|
% |
Nonaccrual loans to gross
loans |
|
0.34 |
|
% |
|
|
0.62 |
|
% |
|
|
0.67 |
|
% |
|
|
0.55 |
|
% |
|
|
0.50 |
|
% |
Nonaccrual loans to gross
loans (excluding PPP) (2) |
|
0.38 |
|
% |
|
|
0.70 |
|
% |
|
|
0.78 |
|
% |
|
|
0.64 |
|
% |
|
|
0.50 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses as a percent of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans |
|
1.49 |
|
% |
|
|
1.48 |
|
% |
|
|
1.40 |
|
% |
|
|
1.33 |
|
% |
|
|
1.43 |
|
% |
Gross loans (excluding PPP) (3) |
|
1.66 |
|
% |
|
|
1.68 |
|
% |
|
|
1.62 |
|
% |
|
|
1.54 |
|
% |
|
|
1.43 |
|
% |
Nonaccrual loans |
|
433.92 |
|
% |
|
|
241.12 |
|
% |
|
|
208.36 |
|
% |
|
|
241.18 |
|
% |
|
|
287.37 |
|
% |
Impaired loans |
|
213.93 |
|
% |
|
|
152.30 |
|
% |
|
|
136.55 |
|
% |
|
|
144.61 |
|
% |
|
|
151.40 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Impaired
loans to gross loans (excluding PPP) is computed by dividing the
impaired loans by total gross loans excluding gross PPP loans.
Management believes that the ratio excluding PPP loans is
meaningful when comparing to periods that do not include PPP loans,
which are guaranteed by the SBA, and are expected to be forgiven
and repaid by the SBA. |
(2) Nonaccrual
loans to gross loans (excluding PPP) is computed by dividing the
nonaccrual loans by total gross loans excluding gross PPP loans.
Management believes that the ratio excluding PPP loans is
meaningful when comparing to periods that do not include PPP loans,
which are guaranteed by the SBA, and are expected to be forgiven
and repaid by the SBA. |
(3) ALLL to gross
loans (excluding PPP) is computed by dividing the ALLL by total
gross loans excluding gross PPP loans. Management believes that the
ratio excluding PPP loans is meaningful when comparing to periods
that do not include PPP loans, which are guaranteed by the SBA, and
are expected to be forgiven and repaid by the SBA. |
Provision for Loan and Lease Losses
We monitor credit quality and the general economic environment
to ensure that the ALLL is maintained at a level that is adequate
to cover estimated credit losses in the loan and lease portfolio.
Our review of ALLL adequacy utilizes both quantitative and
qualitative factors. The quantitative analysis relies on historical
loss rates which, unfortunately, may not be indicative of potential
losses related to a pandemic such as we are currently experiencing
with COVID-19. In response to quantitative data deficiencies, we
have placed greater reliance on qualitative factors
(Q-Factors).
Many of our COVID-19 related credit concerns have moderated and
no provision for loan and lease losses was required during the
first quarter of 2021. Nonaccrual loans decreased 43% since
December 31, 2020 due to the repayment of $3.0 million in principal
from one commercial real estate loan relationship. Net loan loss
recoveries were $117 thousand during the first quarter of 2021 and
most of our borrowers who received a COVID-19 related loan payment
deferral have resumed making their payments. We have however
recognized downgrades of certain loans during the current quarter
based on year-end financial data received by some
borrowers. Approximately half of the loan balance for
the loans downgraded are from SBA 504 loans. No provision for loan
and lease losses was necessary for the current quarter or the prior
quarter compared to a provision for loan and lease losses of $2.9
million in the same quarter a year ago.
During the current quarter, we adjusted our Q-Factor for
economic conditions to reflect our more positive outlook on the
economy. Our ALLL methodology, adjusted for the revised Q-Factor
and the changes in loan quality metrics discussed above supported
an ALLL of $17.0 million at March 31, 2021, an increase of 1%
compared to our ALLL of $16.9 million at December 31, 2020 and an
increase of 13% compared to our ALLL of $15.1 million at March 31,
2020. Management believes the Company’s ALLL is adequate at March
31, 2021. There is, however, no assurance that future loan and
lease losses will not exceed the levels provided for in the ALLL
and could possibly result in future charges to the provision for
loan and lease losses.
At March 31, 2021, the recorded investment in loans classified
as impaired totaled $8.0 million, with a corresponding specific
reserve of $188 thousand compared to impaired loans of $11.1
million, with a corresponding specific reserve of $192 thousand at
December 31, 2020 and impaired loans of $10.0 million with a
corresponding specific reserve of $318 thousand at March 31, 2020.
The decrease in impaired loans during the current quarter resulted
from the repayment of a $3.0 million nonaccrual borrowing
relationship.
TABLE 12 |
TROUBLED DEBT RESTRUCTURINGS - UNAUDITED |
(dollars in thousands) |
|
|
At March 31, |
|
At December 31, |
|
At September 30, |
|
At June 30, |
|
At March 31, |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
Nonaccrual |
$ |
1,947 |
|
|
$ |
2,007 |
|
|
$ |
2,063 |
|
|
$ |
2,194 |
|
|
$ |
1,611 |
|
Accruing |
|
4,035 |
|
|
|
4,090 |
|
|
|
4,259 |
|
|
|
4,455 |
|
|
|
4,709 |
|
Total troubled debt
restructurings |
$ |
5,982 |
|
|
$ |
6,097 |
|
|
$ |
6,322 |
|
|
$ |
6,649 |
|
|
$ |
6,320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Troubled debt restructurings
as a percent of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans |
|
0.52 |
% |
|
|
0.53 |
% |
|
|
0.52 |
% |
|
|
0.55 |
% |
|
|
0.60 |
% |
Gross loans (excluding PPP) (1) |
|
0.58 |
% |
|
|
0.60 |
% |
|
|
0.61 |
% |
|
|
0.64 |
% |
|
|
0.60 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Troubled debt
restructuring to gross loans (excluding PPP) is computed by
dividing troubled debt restructurings by total gross loans
excluding gross PPP loans. Management believes that the ratio
excluding PPP loans is meaningful when comparing to periods that do
not include PPP loans, which are guaranteed by the SBA, and are
expected to be forgiven and repaid by the SBA. |
There were no new troubled debt restructurings during the three
months ended March 31, 2021. As of March 31, 2021, we had 90 loans
that were classified as troubled debt restructurings, of which 88
were performing according to their restructured terms. Of the 90
troubled debt restructurings, 82 were ITIN loans totaling $4.7
million which are serviced by a third party.
Troubled Debt Restructuring Guidance
Financial institution regulators and the CARES Act have changed
the treatment of short-term loan modifications for borrowers
impacted by COVID-19. The change provides that modifications made
in response to COVID-19, to borrowers under certain circumstances,
should not be considered a troubled debt restructuring.
We have responded to the needs of our borrowers in accordance
with the CARES Act and regulatory guidance to grant short-term
COVID-19 related loan modifications. These modified loans are not
troubled debt restructurings and are not considered to be past due
or non-performing. We have granted payment deferrals ranging from
one to six months determined on a case-by-case basis considering
the nature of the business and the impact of COVID-19. For some
borrowers that where initially granted a payment deferral of less
than six months, we have granted an additional payment deferral
period on a case-by-case basis.
We maintain close contact with our borrowers to update our
understanding of the impact of the pandemic on them, their
businesses and the underlying collateral for our loans. For
borrowers who continue to have been granted a loan payment
deferral, we have evaluated their credit quality position and the
potential for loss of principal.
Most of the loan payment deferrals have ended and borrowers have
resumed making payments. At March 31, 2021, there were 26 loans
totaling $4.1 million with a payment deferral compared to 82 loans
totaling $9.5 million at December 31, 2020.
Loans with a payment deferral at March 31, 2021 consisted of two
SBA 504 commercial real estate loans totaling $2.9 million, a $2
thousand consumer loan, and 23 loans totaling $1.2 million that are
serviced by others. The loans serviced by others are small
residential mortgages and consumer home improvement loans that are
geographically disbursed throughout the United States and serviced
by third parties.
Past Due Loans
Past due loans as of March 31, 2021 decreased $2.7 million to
$3.8 million, compared to $6.5 million as of March 31, 2020 and
decreased $1.6 million compared to $5.4 million as of December 31,
2020. The decreases in past due loans was primarily due to
collection of our largest nonaccrual borrowing relationship
totaling $3.0 million that was repaid in the current quarter and a
$1.1 million commercial real estate loan that was repaid in the
prior quarter.
Past due loans included seven loans totaling $3.3 million at
March 31, 2021, that were previously granted payment deferrals:
- Three loans that are guaranteed
under the California Capital Access Program for Small Business;
- $1.4 million for two commercial
loans on nonaccrual status made to one borrower and
- $101 thousand for one commercial
loan secured by residential real estate.
- $626 thousand for one commercial
real estate loan on nonaccrual status that is a troubled debt
restructured loan.
- $1.1 million for one commercial real
estate loan that was fully repaid on April 1, 2021.
- $72 thousand for two ITIN
loans.
The following table presents nonperforming assets at the dates
indicated.
TABLE 13 |
NONPERFORMING ASSETS - UNAUDITED |
(dollars in thousands) |
|
|
At March 31, |
|
At December 31, |
|
At September 30, |
|
At June 30, |
|
At March 31, |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
Total nonaccrual loans |
$ |
3,924 |
|
|
$ |
7,013 |
|
|
$ |
8,098 |
|
|
$ |
6,671 |
|
|
$ |
5,243 |
|
90 days past due and still
accruing |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
Total nonperforming loans |
|
3,924 |
|
|
|
7,013 |
|
|
|
8,098 |
|
|
|
6,671 |
|
|
|
5,245 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other real estate owned
("OREO") |
|
— |
|
|
|
8 |
|
|
|
8 |
|
|
|
8 |
|
|
|
8 |
|
Total nonperforming
assets |
$ |
3,924 |
|
|
$ |
7,021 |
|
|
$ |
8,106 |
|
|
$ |
6,679 |
|
|
$ |
5,253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans |
$ |
1,145,943 |
|
|
$ |
1,139,732 |
|
|
$ |
1,206,065 |
|
|
$ |
1,206,340 |
|
|
$ |
1,052,245 |
|
PPP loans (1) |
|
117,991 |
|
|
|
130,814 |
|
|
|
163,493 |
|
|
|
162,189 |
|
|
|
— |
|
Total gross loans, net of PPP loans |
$ |
1,027,952 |
|
|
$ |
1,008,918 |
|
|
$ |
1,042,572 |
|
|
$ |
1,044,151 |
|
|
$ |
1,052,245 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to gross
loans |
|
0.34 |
% |
|
|
0.62 |
% |
|
|
0.67 |
% |
|
|
0.55 |
% |
|
|
0.50 |
% |
Nonperforming loans to gross
loans (excluding PPP) (2) |
|
0.38 |
% |
|
|
0.70 |
% |
|
|
0.78 |
% |
|
|
0.64 |
% |
|
|
0.50 |
% |
Nonperforming assets to total
assets |
|
0.21 |
% |
|
|
0.40 |
% |
|
|
0.47 |
% |
|
|
0.39 |
% |
|
|
0.36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) PPP loans are
fully guaranteed by SBA and no allowance is provided for them. |
(2) Nonperforming
loans to gross loans (excluding PPP) is computed by dividing
nonperforming loans by total gross loans excluding gross PPP loans.
Management believes that the ratio excluding PPP loans is
meaningful when comparing to periods that do not include PPP loans,
which are guaranteed by the SBA, and are expected to be forgiven
and repaid by the SBA. |
The following table summarizes when loans are projected to
reprice by year and rate index as of March 31, 2021.
TABLE 14 |
LOANS BY RATE INDEX AND PROJECTED REPRICING PERIOD -
UNAUDITED |
(dollars in thousands) |
|
|
At March 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years 6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Through |
|
Beyond |
|
|
|
Rate Index: |
Year 1 |
|
Year 2 |
|
Year 3 |
|
Year 4 |
|
Year 5 |
|
Year 10 |
|
Year 10 |
|
Total |
Fixed |
$ |
78,882 |
|
$ |
106,343 |
|
$ |
57,826 |
|
$ |
45,797 |
|
$ |
41,390 |
|
$ |
187,744 |
|
$ |
38,332 |
|
$ |
556,314 |
Variable: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prime |
|
70,560 |
|
|
5,540 |
|
|
5,402 |
|
|
6,957 |
|
|
6,722 |
|
|
954 |
|
|
— |
|
|
96,135 |
5 Year Treasury |
|
47,993 |
|
|
66,128 |
|
|
60,511 |
|
|
94,813 |
|
|
102,025 |
|
|
55,762 |
|
|
— |
|
|
427,232 |
7 Year Treasury |
|
2,914 |
|
|
4,502 |
|
|
5,347 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
12,763 |
1 Year LIBOR |
|
17,418 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
17,418 |
Other Indexes |
|
3,373 |
|
|
1,961 |
|
|
1,801 |
|
|
9,831 |
|
|
2,504 |
|
|
11,386 |
|
|
1,444 |
|
|
32,300 |
Total accruing variable rate loans |
|
142,258 |
|
|
78,131 |
|
|
73,061 |
|
|
111,601 |
|
|
111,251 |
|
|
68,102 |
|
|
1,444 |
|
|
585,848 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
800 |
|
|
784 |
|
|
728 |
|
|
444 |
|
|
244 |
|
|
780 |
|
|
144 |
|
|
3,924 |
Total |
$ |
221,940 |
|
$ |
185,258 |
|
$ |
131,615 |
|
$ |
157,842 |
|
$ |
152,885 |
|
$ |
256,626 |
|
$ |
39,920 |
|
$ |
1,146,086 |
For variable rate loans, the following table summarizes those
that are at or above their floor rate, and those that do not
possess a contractual floor rate.
TABLE 15 |
LOAN FLOORS - UNAUDITED |
(dollars in thousands) |
|
|
Variable Rate Loans at March 31, 2021 |
|
With Floors |
|
Without |
|
|
|
|
At Floor Rate |
|
Above Floor Rate |
|
Total |
|
Floors |
|
Total |
Prime |
$ |
41,635 |
|
$ |
6,145 |
|
$ |
47,780 |
|
$ |
48,355 |
|
$ |
96,135 |
5 year Treasury |
|
355,530 |
|
|
44,466 |
|
|
399,996 |
|
|
27,236 |
|
|
427,232 |
7 Year Treasury |
|
12,763 |
|
|
— |
|
|
12,763 |
|
|
— |
|
|
12,763 |
1 Year LIBOR |
|
— |
|
|
709 |
|
|
709 |
|
|
16,709 |
|
|
17,418 |
Other Indexes |
|
15,041 |
|
|
824 |
|
|
15,865 |
|
|
16,435 |
|
|
32,300 |
Total accruing variable rate loans |
$ |
424,969 |
|
$ |
52,144 |
|
$ |
477,113 |
|
$ |
108,735 |
|
|
585,848 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual |
|
|
|
|
|
|
|
|
|
|
|
|
|
3,924 |
Total variable rate loans |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
589,772 |
TABLE 16 |
UNAUDITED |
CONSOLIDATED BALANCE SHEET |
(dollars in thousands, except per share data) |
|
|
At March 31, |
|
Change |
|
At December 31, |
|
2021 |
|
|
2020 |
|
|
$ |
|
% |
|
2020 |
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
20,053 |
|
|
$ |
21,127 |
|
|
$ |
(1,074 |
) |
|
(5 |
) |
% |
|
$ |
19,875 |
|
Interest-bearing deposits in other banks |
|
74,804 |
|
|
|
22,813 |
|
|
|
51,991 |
|
|
228 |
|
% |
|
|
87,111 |
|
Total cash and cash equivalents |
|
94,857 |
|
|
|
43,940 |
|
|
|
50,917 |
|
|
116 |
|
% |
|
|
106,986 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available-for-sale, at fair value |
|
517,375 |
|
|
|
285,077 |
|
|
|
232,298 |
|
|
81 |
|
% |
|
|
446,880 |
|
Loans, net of deferred fees and costs |
|
1,146,086 |
|
|
|
1,054,374 |
|
|
|
91,712 |
|
|
9 |
|
% |
|
|
1,139,961 |
|
Allowance for loan and lease losses |
|
(17,027 |
) |
|
|
(15,067 |
) |
|
|
(1,960 |
) |
|
(13 |
) |
% |
|
|
(16,910 |
) |
Net loans |
|
1,129,059 |
|
|
|
1,039,307 |
|
|
|
89,752 |
|
|
9 |
|
% |
|
|
1,123,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises and equipment, net |
|
14,792 |
|
|
|
15,452 |
|
|
|
(660 |
) |
|
(4 |
) |
% |
|
|
14,999 |
|
Life insurance |
|
24,320 |
|
|
|
23,824 |
|
|
|
496 |
|
|
2 |
|
% |
|
|
24,206 |
|
Deferred tax asset, net |
|
5,929 |
|
|
|
3,149 |
|
|
|
2,780 |
|
|
88 |
|
% |
|
|
3,954 |
|
Goodwill |
|
11,671 |
|
|
|
11,671 |
|
|
|
— |
|
|
— |
|
% |
|
|
11,671 |
|
Other intangible assets, net |
|
3,852 |
|
|
|
4,618 |
|
|
|
(766 |
) |
|
(17 |
) |
% |
|
|
4,044 |
|
Other assets |
|
27,247 |
|
|
|
28,842 |
|
|
|
(1,595 |
) |
|
(6 |
) |
% |
|
|
28,163 |
|
Total assets |
$ |
1,829,102 |
|
|
$ |
1,455,880 |
|
|
$ |
373,222 |
|
|
26 |
|
% |
|
$ |
1,763,954 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders'
equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand - noninterest-bearing |
$ |
603,991 |
|
|
$ |
419,315 |
|
|
$ |
184,676 |
|
|
44 |
|
% |
|
$ |
541,033 |
|
Demand - interest-bearing |
|
290,687 |
|
|
|
231,276 |
|
|
|
59,411 |
|
|
26 |
|
% |
|
|
290,251 |
|
Money market |
|
425,251 |
|
|
|
314,687 |
|
|
|
110,564 |
|
|
35 |
|
% |
|
|
425,121 |
|
Savings |
|
160,834 |
|
|
|
133,552 |
|
|
|
27,282 |
|
|
20 |
|
% |
|
|
150,695 |
|
Certificates of deposit |
|
133,630 |
|
|
|
143,557 |
|
|
|
(9,927 |
) |
|
(7 |
) |
% |
|
|
135,679 |
|
Total deposits |
|
1,614,393 |
|
|
|
1,242,387 |
|
|
|
372,006 |
|
|
30 |
|
% |
|
|
1,542,779 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term debt: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home Loan Bank of San Francisco ("FHLB") borrowings |
|
— |
|
|
|
10,000 |
|
|
|
(10,000 |
) |
|
(100 |
) |
% |
|
|
5,000 |
|
Other borrowings |
|
10,000 |
|
|
|
10,000 |
|
|
|
— |
|
|
— |
|
% |
|
|
10,000 |
|
Unamortized debt issuance costs |
|
— |
|
|
|
(31 |
) |
|
|
31 |
|
|
100 |
|
% |
|
|
— |
|
Net term debt |
|
10,000 |
|
|
|
19,969 |
|
|
|
(9,969 |
) |
|
(50 |
) |
% |
|
|
15,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Junior subordinated debentures |
|
10,310 |
|
|
|
10,310 |
|
|
|
— |
|
|
— |
|
% |
|
|
10,310 |
|
Other liabilities |
|
17,259 |
|
|
|
17,556 |
|
|
|
(297 |
) |
|
(2 |
) |
% |
|
|
18,163 |
|
Total liabilities |
|
1,651,962 |
|
|
|
1,290,222 |
|
|
|
361,740 |
|
|
28 |
|
% |
|
|
1,586,252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
59,215 |
|
|
|
59,067 |
|
|
|
148 |
|
|
— |
|
% |
|
|
58,988 |
|
Retained earnings |
|
115,142 |
|
|
|
100,644 |
|
|
|
14,498 |
|
|
14 |
|
% |
|
|
111,226 |
|
Accumulated other comprehensive income, net of tax |
|
2,783 |
|
|
|
5,947 |
|
|
|
(3,164 |
) |
|
(53 |
) |
% |
|
|
7,488 |
|
Total shareholders' equity |
|
177,140 |
|
|
|
165,658 |
|
|
|
11,482 |
|
|
7 |
|
% |
|
|
177,702 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity |
$ |
1,829,102 |
|
|
$ |
1,455,880 |
|
|
$ |
373,222 |
|
|
26 |
|
% |
|
$ |
1,763,954 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-earning
assets |
$ |
1,734,314 |
|
|
$ |
1,353,822 |
|
|
$ |
380,492 |
|
|
28 |
|
% |
|
$ |
1,663,321 |
|
Shares outstanding |
|
16,876 |
|
|
|
16,796 |
|
|
|
80 |
|
|
— |
|
% |
|
|
16,801 |
|
Book value per share (1) |
$ |
10.50 |
|
|
$ |
9.86 |
|
|
$ |
0.64 |
|
|
6 |
|
% |
|
$ |
10.58 |
|
Tangible book value per share
(1) |
$ |
9.58 |
|
|
$ |
8.89 |
|
|
$ |
0.69 |
|
|
8 |
|
% |
|
$ |
9.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Book value
per share is computed by dividing total shareholders’ equity by
shares outstanding. Tangible book value per share is computed by
dividing total shareholders’ equity less goodwill and core deposit
intangible, net by shares outstanding. Management believes that
tangible book value per share is meaningful because it is a measure
that the Company and investors commonly use to assess capital
adequacy. |
TABLE 17 |
UNAUDITED |
INCOME STATEMENT |
(dollars in thousands, except per share data) |
|
For The Three Months Ended |
|
March 31, |
|
Change |
|
December 31, |
|
2021 |
|
2020 |
|
|
$ |
|
% |
|
2020 |
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
13,215 |
|
$ |
12,338 |
|
|
$ |
877 |
|
|
7 |
|
% |
|
$ |
13,532 |
Interest on taxable securities |
|
1,485 |
|
|
1,582 |
|
|
|
(97 |
) |
|
(6 |
) |
% |
|
|
1,484 |
Interest on tax-exempt securities |
|
511 |
|
|
271 |
|
|
|
240 |
|
|
89 |
|
% |
|
|
467 |
Interest on interest-bearing deposits in other banks |
|
29 |
|
|
154 |
|
|
|
(125 |
) |
|
(81 |
) |
% |
|
|
36 |
Total interest income |
|
15,240 |
|
|
14,345 |
|
|
|
895 |
|
|
6 |
|
% |
|
|
15,519 |
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on demand deposits |
|
58 |
|
|
100 |
|
|
|
(42 |
) |
|
(42 |
) |
% |
|
|
57 |
Interest on money market |
|
195 |
|
|
403 |
|
|
|
(208 |
) |
|
(52 |
) |
% |
|
|
237 |
Interest on savings |
|
48 |
|
|
118 |
|
|
|
(70 |
) |
|
(59 |
) |
% |
|
|
53 |
Interest on certificates of deposit |
|
338 |
|
|
464 |
|
|
|
(126 |
) |
|
(27 |
) |
% |
|
|
390 |
Interest on other borrowings |
|
137 |
|
|
184 |
|
|
|
(47 |
) |
|
(26 |
) |
% |
|
|
179 |
Interest on junior subordinated debentures |
|
46 |
|
|
90 |
|
|
|
(44 |
) |
|
(49 |
) |
% |
|
|
47 |
Total interest expense |
|
822 |
|
|
1,359 |
|
|
|
(537 |
) |
|
(40 |
) |
% |
|
|
963 |
Net interest income |
|
14,418 |
|
|
12,986 |
|
|
|
1,432 |
|
|
11 |
|
% |
|
|
14,556 |
Provision for loan and lease
losses |
|
— |
|
|
2,850 |
|
|
|
(2,850 |
) |
|
(100 |
) |
% |
|
|
— |
Net interest income after provision for loan and lease losses |
|
14,418 |
|
|
10,136 |
|
|
|
4,282 |
|
|
42 |
|
% |
|
|
14,556 |
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
148 |
|
|
169 |
|
|
|
(21 |
) |
|
(12 |
) |
% |
|
|
173 |
ATM and point of sale fees |
|
318 |
|
|
268 |
|
|
|
50 |
|
|
19 |
|
% |
|
|
306 |
Payroll and benefit processing fees |
|
169 |
|
|
170 |
|
|
|
(1 |
) |
|
(1 |
) |
% |
|
|
182 |
Life insurance |
|
121 |
|
|
123 |
|
|
|
(2 |
) |
|
(2 |
) |
% |
|
|
125 |
Gain on investment securities, net |
|
7 |
|
|
84 |
|
|
|
(77 |
) |
|
(92 |
) |
% |
|
|
— |
FHLB dividends |
|
93 |
|
|
130 |
|
|
|
(37 |
) |
|
(28 |
) |
% |
|
|
94 |
Legal settlement |
|
221 |
|
|
— |
|
|
|
221 |
|
|
100 |
|
% |
|
|
— |
Other income (loss) |
|
86 |
|
|
(52 |
) |
|
|
138 |
|
|
265 |
|
% |
|
|
136 |
Total noninterest income |
|
1,163 |
|
|
892 |
|
|
|
271 |
|
|
30 |
|
% |
|
|
1,016 |
TABLE 17 - CONTINUED |
UNAUDITED |
INCOME STATEMENT |
(dollars in thousands, except per share data) |
|
|
For The Three Months Ended |
|
March 31, |
|
Change |
|
December 31, |
|
2021 |
|
2020 |
|
$ |
|
% |
|
2020 |
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and related benefits |
|
5,639 |
|
|
5,887 |
|
|
(248 |
) |
|
(4 |
) |
% |
|
|
5,284 |
Premises and equipment |
|
959 |
|
|
854 |
|
|
105 |
|
|
12 |
|
% |
|
|
966 |
FDIC insurance premium |
|
110 |
|
|
36 |
|
|
74 |
|
|
206 |
|
% |
|
|
105 |
Data processing |
|
548 |
|
|
531 |
|
|
17 |
|
|
3 |
|
% |
|
|
584 |
Professional services |
|
301 |
|
|
334 |
|
|
(33 |
) |
|
(10 |
) |
% |
|
|
292 |
Telecommunications |
|
170 |
|
|
171 |
|
|
(1 |
) |
|
(1 |
) |
% |
|
|
174 |
Other expenses |
|
1,170 |
|
|
1,970 |
|
|
(800 |
) |
|
(41 |
) |
% |
|
|
1,129 |
Total noninterest expense |
|
8,897 |
|
|
9,783 |
|
|
(886 |
) |
|
(9 |
) |
% |
|
|
8,534 |
Income before provision for
income taxes |
|
6,684 |
|
|
1,245 |
|
|
5,439 |
|
|
437 |
|
% |
|
|
7,038 |
Provision for income taxes |
|
1,764 |
|
|
329 |
|
|
1,435 |
|
|
436 |
|
% |
|
|
1,966 |
Total provision for income
taxes |
|
1,764 |
|
|
329 |
|
|
1,435 |
|
|
436 |
|
% |
|
|
1,966 |
Net income |
$ |
4,920 |
|
$ |
916 |
|
$ |
4,004 |
|
|
437 |
|
% |
|
$ |
5,072 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic |
$ |
0.29 |
|
$ |
0.05 |
|
$ |
0.24 |
|
|
480 |
|
% |
|
$ |
0.30 |
Weighted average shares -
basic |
|
16,706 |
|
|
17,695 |
|
|
(989 |
) |
|
(6 |
) |
% |
|
|
16,663 |
Earnings per share -
diluted |
$ |
0.29 |
|
$ |
0.05 |
|
$ |
0.24 |
|
|
480 |
|
% |
|
$ |
0.30 |
Weighted average shares -
diluted |
|
16,778 |
|
|
17,747 |
|
|
(969 |
) |
|
(5 |
) |
% |
|
|
16,731 |
TABLE 18 |
UNAUDITED CONDENSED CONSOLIDATED |
QUARTERLY AVERAGE BALANCE SHEETS |
(dollars in thousands) |
|
|
For The Three Months Ended |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
Earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
1,140,315 |
|
$ |
1,172,705 |
|
$ |
1,209,277 |
|
$ |
1,180,915 |
|
$ |
1,033,689 |
Taxable securities |
|
358,291 |
|
|
304,242 |
|
|
228,045 |
|
|
211,195 |
|
|
237,405 |
Tax-exempt securities |
|
82,355 |
|
|
73,207 |
|
|
68,766 |
|
|
58,540 |
|
|
34,869 |
Interest-bearing deposits in other banks |
|
111,320 |
|
|
124,390 |
|
|
95,348 |
|
|
72,507 |
|
|
47,135 |
Total earning assets |
|
1,692,281 |
|
|
1,674,544 |
|
|
1,601,436 |
|
|
1,523,157 |
|
|
1,353,098 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
21,744 |
|
|
22,413 |
|
|
23,381 |
|
|
21,564 |
|
|
21,987 |
Premises and equipment,
net |
|
15,001 |
|
|
15,162 |
|
|
15,365 |
|
|
15,428 |
|
|
15,753 |
Life insurance |
|
24,265 |
|
|
24,147 |
|
|
24,028 |
|
|
23,899 |
|
|
23,762 |
Deferred tax asset, net |
|
4,287 |
|
|
2,738 |
|
|
2,501 |
|
|
3,016 |
|
|
4,259 |
Goodwill |
|
11,671 |
|
|
11,671 |
|
|
11,671 |
|
|
11,671 |
|
|
11,671 |
Other intangible assets,
net |
|
3,934 |
|
|
4,126 |
|
|
4,318 |
|
|
4,508 |
|
|
4,701 |
Other assets |
|
17,264 |
|
|
20,136 |
|
|
21,416 |
|
|
23,584 |
|
|
18,788 |
Total assets |
$ |
1,790,447 |
|
$ |
1,774,937 |
|
$ |
1,704,116 |
|
$ |
1,626,827 |
|
$ |
1,454,019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders'
equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand - noninterest-bearing |
$ |
562,155 |
|
$ |
552,601 |
|
$ |
531,459 |
|
$ |
497,636 |
|
$ |
420,847 |
Demand - interest-bearing |
|
295,388 |
|
|
283,213 |
|
|
279,744 |
|
|
261,907 |
|
|
233,375 |
Money market |
|
425,113 |
|
|
430,014 |
|
|
387,995 |
|
|
365,368 |
|
|
307,587 |
Savings |
|
154,199 |
|
|
151,223 |
|
|
146,074 |
|
|
138,500 |
|
|
135,504 |
Certificates of deposit |
|
134,520 |
|
|
138,380 |
|
|
139,757 |
|
|
142,955 |
|
|
147,241 |
Total deposits |
|
1,571,375 |
|
|
1,555,431 |
|
|
1,485,029 |
|
|
1,406,366 |
|
|
1,244,554 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home Loan Bank of San Francisco ("FHLB") borrowings |
|
3,889 |
|
|
7,120 |
|
|
10,000 |
|
|
16,044 |
|
|
220 |
Other borrowings |
|
10,000 |
|
|
9,999 |
|
|
9,988 |
|
|
9,976 |
|
|
9,963 |
Junior subordinated debentures |
|
10,310 |
|
|
10,310 |
|
|
10,310 |
|
|
10,310 |
|
|
10,310 |
Other liabilities |
|
16,711 |
|
|
17,557 |
|
|
17,356 |
|
|
17,095 |
|
|
16,852 |
Total liabilities |
|
1,612,285 |
|
|
1,600,417 |
|
|
1,532,683 |
|
|
1,459,791 |
|
|
1,281,899 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
178,162 |
|
|
174,520 |
|
|
171,433 |
|
|
167,036 |
|
|
172,120 |
Liabilities &
shareholders' equity |
$ |
1,790,447 |
|
$ |
1,774,937 |
|
$ |
1,704,116 |
|
$ |
1,626,827 |
|
$ |
1,454,019 |
TABLE 19 |
UNAUDITED CONDENSED CONSOLIDATED |
YEAR TO DATE AVERAGE BALANCE SHEETS |
(dollars in thousands) |
|
|
For the Three Months Ended |
|
For the Twelve Months Ended |
|
March 31, |
|
March 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
2021 |
|
2020 |
|
2020 |
|
2019 |
|
2018 |
Earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
1,140,315 |
|
$ |
1,033,689 |
|
$ |
1,149,375 |
|
$ |
1,020,801 |
|
$ |
915,360 |
Taxable securities |
|
358,291 |
|
|
237,405 |
|
|
245,336 |
|
|
246,723 |
|
|
207,407 |
Tax-exempt securities |
|
82,355 |
|
|
34,869 |
|
|
58,912 |
|
|
38,706 |
|
|
50,330 |
Interest-bearing deposits in other banks |
|
111,320 |
|
|
47,135 |
|
|
84,982 |
|
|
54,095 |
|
|
47,038 |
Total earning assets |
|
1,692,281 |
|
|
1,353,098 |
|
|
1,538,605 |
|
|
1,360,325 |
|
|
1,220,135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
21,744 |
|
|
21,987 |
|
|
22,339 |
|
|
22,806 |
|
|
20,468 |
Premises and equipment,
net |
|
15,001 |
|
|
15,753 |
|
|
15,426 |
|
|
15,598 |
|
|
13,952 |
Life insurance |
|
24,265 |
|
|
23,762 |
|
|
23,960 |
|
|
23,371 |
|
|
22,148 |
Deferred tax asset, net |
|
4,287 |
|
|
4,259 |
|
|
3,126 |
|
|
5,430 |
|
|
7,567 |
Goodwill |
|
11,671 |
|
|
11,671 |
|
|
11,671 |
|
|
10,758 |
|
|
665 |
Other intangible assets,
net |
|
3,934 |
|
|
4,701 |
|
|
4,412 |
|
|
4,807 |
|
|
1,252 |
Other assets |
|
17,264 |
|
|
18,788 |
|
|
20,980 |
|
|
15,017 |
|
|
2,654 |
Total assets |
$ |
1,790,447 |
|
$ |
1,454,019 |
|
$ |
1,640,519 |
|
$ |
1,458,112 |
|
$ |
1,288,841 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders'
equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand - noninterest-bearing |
$ |
562,155 |
|
$ |
420,847 |
|
$ |
500,862 |
|
$ |
400,588 |
|
$ |
332,197 |
Demand - interest-bearing |
|
295,388 |
|
|
233,375 |
|
|
264,652 |
|
|
242,516 |
|
|
238,328 |
Money market |
|
425,113 |
|
|
307,587 |
|
|
372,939 |
|
|
304,340 |
|
|
250,685 |
Savings |
|
154,199 |
|
|
135,504 |
|
|
142,857 |
|
|
136,733 |
|
|
109,025 |
Certificates of deposit |
|
134,520 |
|
|
147,241 |
|
|
142,067 |
|
|
160,550 |
|
|
168,183 |
Total deposits |
|
1,571,375 |
|
|
1,244,554 |
|
|
1,423,377 |
|
|
1,244,727 |
|
|
1,098,418 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home Loan Bank of San Francisco ("FHLB") borrowings |
|
3,889 |
|
|
220 |
|
|
8,347 |
|
|
9,644 |
|
|
22,466 |
Other borrowings |
|
10,000 |
|
|
9,963 |
|
|
9,981 |
|
|
10,895 |
|
|
15,143 |
Junior subordinated debentures |
|
10,310 |
|
|
10,310 |
|
|
10,310 |
|
|
10,310 |
|
|
10,310 |
Other liabilities |
|
16,711 |
|
|
16,852 |
|
|
17,217 |
|
|
17,894 |
|
|
12,286 |
Total liabilities |
|
1,612,285 |
|
|
1,281,899 |
|
|
1,469,232 |
|
|
1,293,470 |
|
|
1,158,623 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
178,162 |
|
|
172,120 |
|
|
171,287 |
|
|
164,642 |
|
|
130,218 |
Liabilities &
shareholders' equity |
$ |
1,790,447 |
|
$ |
1,454,019 |
|
$ |
1,640,519 |
|
$ |
1,458,112 |
|
$ |
1,288,841 |
About Bank of Commerce Holdings
Bank of Commerce Holdings is a bank holding company
headquartered in Sacramento, California and is the parent company
for Merchants Bank of Commerce. The Bank is an FDIC-insured
California banking corporation providing community banking and
financial services in northern California along the Interstate 5
corridor from Sacramento to Yreka and in the wine region north of
San Francisco. The Bank was incorporated as a California banking
corporation on November 25, 1981 and opened for business on October
22, 1982. The Company’s common stock is listed on the NASDAQ Global
Market and trades under the symbol “BOCH”.
Contact Information:
Randall S. Eslick, President and Chief Executive
OfficerTelephone Direct (916) 677-5800
James A. Sundquist, Executive Vice President and Chief Financial
OfficerTelephone Direct (916) 677-5825
Andrea M. Newburn, Vice President and Senior Administrative
Officer / Corporate SecretaryTelephone Direct (530) 722-3959
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