HomeTrust Bancshares, Inc. (NASDAQ: HTBI) ("Company"), the holding
company of HomeTrust Bank ("Bank"), today announced preliminary net
income for the third quarter of fiscal 2022 and approval of its
quarterly dividend.
For the quarter ended March 31, 2022 compared to
the corresponding quarter in the previous year:
- net income was
$8.0 million, compared to $7.9 million;
- diluted earnings
per share ("EPS") was $0.51, compared to $0.48;
- annualized
return on assets ("ROA") was 0.92%, compared to 0.84%;
- annualized
return on equity ("ROE") was 8.15%, compared to 7.78%;
- provision for
credit losses was a net benefit of $45,000, compared to a net
benefit of $4.1 million;
- noninterest
income was $8.9 million compared to $10.7 million;
- prepayment
penalty on the early retirement of borrowings was $0 compared to
$3.7 million;
- 419,931 shares
of Company common stock were repurchased during the quarter at an
average price of $30.76 per share;
- net commercial
loan growth, excluding U.S. Small Business Administration's ("SBA")
Paycheck Protection Program ("PPP") loans, was $29.8 million, or
6.0% annualized compared to $42.7 million, or 9.7% annualized, in
the prior year; and
- quarterly cash
dividends continued at $0.09 per share, totaling $1.4 million.
For the nine months ended March 31, 2022
compared to the previous year:
- net income was $29.6 million,
compared to $23.1 million;
- diluted earnings per share ("EPS")
was $1.84, compared to $1.40;
- annualized return on assets ("ROA")
was 1.12%, compared to 0.83%;
- annualized return on equity ("ROE")
was 9.91%, compared to 7.64%;
- provision for credit losses was a
net benefit of $4.0 million, compared to a net benefit of $6.2
million;
- noninterest income was $29.5 million
compared to $28.7 million;
- prepayment penalty on the early
retirement of borrowings was $0 compared to $3.7 million;
- 1,095,763 shares of Company common
stock were repurchased during the nine months at an average price
of $29.50 per share; and
- net commercial
loan growth, excluding PPP loans, was $108.7 million, or 7.5%
annualized compared to $31.7 million, or 2.4% annualized in the
prior year.
The Company also announced today that its Board
of Directors declared a quarterly cash dividend of $0.09 per common
share payable on June 2, 2022 to shareholders of record as of the
close of business on May 19, 2022.
“The Company was able to maintain it’s positive
momentum this past quarter,” said Dana Stonestreet, Chairman and
Chief Executive Officer. “Our commercial loan portfolio had another
strong quarter of net growth, primarily within the construction and
development and equipment finance portfolios. As expected, upward
movement in interest rates resulted in a decline in both the volume
of residential mortgage sales and the value of our investment
portfolio; however, due to the short-term duration of our
investments, our tangible book value per share actually increased
even after repurchasing $12.9 million of shares during the quarter.
The Company is well-positioned to benefit from an increase in yield
on our loan and investment portfolios going forward.”
Comparison of Results of Operations for
the Three Months Ended March 31, 2022 and 2021
Net interest income increased by $1.3 million,
or 5.2%, to $27.0 million for the quarter ended March 31, 2022,
compared to $25.7 million for the comparative quarter in fiscal
2021. Interest and dividend income decreased by $1.1 million, or
3.8%, primarily driven by lower average balances on
interest-earning assets combined with lower loan yields. This
decrease was offset by a $2.5 million, or 68.2% decrease in
interest expense. Average interest-earning assets decreased $225.4
million, or 6.4%, to $3.3 billion for the quarter ended March 31,
2022. The main drivers of the change were decreases of $179.4
million, or 34.3%, in the average balance of commercial paper and
deposits in other banks and $42.0 million, or 27.3%, in debt
securities available for sale as the Company used excess liquidity
to reduce borrowings, which declined by $431.5 million, or 92.8%,
when compared to the prior period. Net interest margin (on a fully
taxable-equivalent basis) for the three months ended March 31, 2022
increased to 3.39% from 3.02% for the same period a year ago as all
higher rate long-term borrowings were repaid during the quarter
ended June 30, 2021.
Total interest and dividend income decreased
$1.1 million, or 3.8%, for the quarter ended March 31, 2022 as
compared to the same quarter last year, which was primarily a
result of a $1.0 million, or 3.7%, decrease in loan interest
income. The lower loan interest income was driven by a decline in
the average yield on loans of 17 basis points, from 4.08% to 3.91%.
Loan interest income for the quarter included the amortization of
$265,000 of PPP loan origination fees, a decline of $349,000 when
compared to the $614,000 recognized in the prior period. The
overall average yield on interest-earning assets increased 10 basis
points to 3.54% for the current quarter compared to 3.44% in the
same quarter last year primarily due to the change in the mix of
interest-earning assets.
Total interest expense decreased $2.5 million,
or 68.2%, for the quarter ended March 31, 2022 compared to the same
period last year. The decrease was driven by a $1.6 million, or
99.8%, decrease in interest expense on borrowings as discussed
above and a $845,000, or 42.3%, decrease in interest expense on
deposits. The average balance of total deposits increased by $228.1
million, or 8.1%, with noninterest-bearing deposits and
interest-bearing deposits increasing $161.7 million and $66.4
million, respectively. The increase in interest-bearing deposits
was driven by a $113.5 million, or 12.5% increase in money market
accounts, partially offset by a $74.9 million, or 14.5%, decrease
in certificates of deposit. As stated above, average borrowings for
the quarter ended March 31, 2022 decreased $431.5 million, or
92.8%, along with a 137 basis point decrease in the average cost of
borrowings compared to the same period last year. The decrease in
the average cost of borrowings was primarily driven by the early
retirement of long-term borrowings reducing the average balance and
partially driven by a shift to short-term borrowings at lower
rates. The overall average cost of funds decreased 34 basis points
to 0.20% for the current quarter compared to 0.54% in the same
quarter last year.
Noninterest income decreased $1.7 million, or
16.2%, to $8.9 million for the quarter ended March 31, 2022 from
$10.7 million for the same period in the previous year. This change
was primarily due to a $1.9 million, or 39.2%, decrease in gain on
sale of loans, partially offset by a $229,000, or 16.0%, increase
in operating lease income. The decrease in gain on sale of loans
was driven by decreases in loan principal sold across all
portfolios. During the quarter ended March 31, 2022, $53.4 million
of residential mortgage loans originated for sale were sold with
gains of $1.3 million compared to $106.5 million sold and gains of
$2.7 million in the corresponding period in the prior year. There
were $16.5 million of sales of the guaranteed portion of SBA
commercial loans with gains of $1.5 million in the current quarter
compared to $20.2 million sold and gains of $1.8 million for the
same period last year. The Company sold $25.0 million of home
equity lines of credit (HELOC) during the quarter for a gain of
$156,000 compared to $43.8 million sold and gains of $301,000 in
the corresponding period last year.
Noninterest expense decreased $4.7 million, or
15.4%, for the quarter ended March 31, 2022 as compared to the same
period last year, which was primarily a result of a decrease of
$3.7 million in prepayment penalties on long-term borrowings, and a
$1.1 million, or 6.7%, decrease in salaries and benefits expense
due to branch closures and lower mortgage banking incentive pay in
the period.
For the quarter ended March 31, 2022, the
Company's income tax expense increased $114,000, or 5.4%, to $2.2
million from $2.1 million primarily as a result of higher taxable
income. The effective tax rates for the quarters ended March 31,
2022 and 2021 were 21.6% and 21.0%, respectively.
Comparison of Results of Operations for
the Nine Months Ended March 31, 2022 and 2021
Net interest income increased by $4.6 million,
or 5.9%, to $81.9 million for the nine months ended March 31, 2022,
compared to the same period last year. Interest and dividend income
decreased by $3.9 million, or 4.4%, primarily driven by lower
average balances on interest-earning assets. This decrease was
offset by a $8.5 million, or 67.7%, decrease in interest expense.
Average interest-earning assets decreased $184.0 million, or 5.3%,
to $3.3 billion for the nine months ended March 31, 2022. The
biggest reason for the change was a decrease of $143.2 million, or
31.5%, in commercial paper and deposits in other banks, as the
Company used excess liquidity to reduce borrowings, where the
average balance declined from $471.7 million to $48.9 million. Net
interest margin (on a fully taxable-equivalent basis) for the nine
months ended March 31, 2022 increased to 3.38% from 3.02% for the
same period a year ago as all higher rate long-term borrowings were
repaid during the quarter ended June 30, 2021.
Total interest and dividend income decreased
$3.9 million, or 4.4%, for the nine months ended March 31, 2022 as
compared to the same period last year, which was primarily a result
of a $3.1 million, or 3.7%, decrease in loan interest income and a
$744,000, or 35.3%, decrease in interest income on commercial paper
and deposits in other banks. The lower interest income in each
category was driven by the combined effect of a decrease in average
balances, as discussed above, and a decline in average loan yields
which decreased 13 basis points to 3.90%, and average yields on
debt securities available for sale which decreased 13 basis points
to 1.42%. Loan interest income for the nine months included the
amortization of $975,000 of PPP loan origination fees, a decline of
$381,000 when compared to the $1.4 million recognized in the prior
period. The overall average yield on interest-earning assets
increased three basis points to 3.54% for the nine months compared
to 3.51% in the same period last year as a result of a shift to
higher yielding assets.
Total interest expense decreased $8.5 million,
or 67.7%, for the nine months ended March 31, 2022 compared to the
same period last year. The decrease was driven by a $5.0 million,
or 99.1%, decrease in interest expense on borrowings as discussed
above and a $3.6 million, or 47.0%, decrease in interest expense on
deposits. The average balance of total deposits increased by $257.5
million, or 9.3%, with noninterest-bearing deposits and
interest-bearing deposits increasing $197.5 million and $60.0
million, respectively. The increase in interest-bearing deposits
was driven by a $142.4 million, or 16.6%, increase in money market
accounts and $46.4 million, or 7.8%, increase in interest-bearing
checking accounts, partially offset by a $146.9 million, or 24.7%,
decrease in certificates of deposit. As stated above average
borrowings for the nine months ended March 31, 2022 decreased
$422.8 million, or 89.6%, along with a 129 basis point decrease in
the average cost of borrowings compared to the same period last
year. The increase in average deposits (interest and
noninterest-bearing) was due to successful deposit gathering
campaigns and the effect of government stimulus in prior periods.
The decrease in the average cost of borrowings was primarily driven
by the early retirement of long-term borrowings reducing the
average balance and partially driven by a shift to short-term
borrowings at lower rates. The overall average cost of funds
decreased 39 basis points to 0.23% for the nine months compared to
0.62% in the same period last year.
Noninterest income increased $819,000, or 2.9%,
to $29.5 million for the nine months ended March 31, 2022 from
$28.7 million for the same period in the previous year. This change
was due to an $857,000, or 51.0%, increase in loan income and fees,
an $813,000, or 19.8% increase in operating lease income, a
$394,000, or 5.9% increase in service charges and fees on deposit
accounts, partially offset by a $1.0 million, or 8.4%, decrease in
gain on sale of loans. The increase in loan income and fees was
primarily a result of $924,000 in additional loan servicing fees as
a result of bringing the Company's SBA loan servicing process
in-house, which began July 1, 2021. The increase in operating lease
income was primarily driven by increases in loan originations and
higher outstanding lease balances during the period, while the
increase in service charges on deposit accounts was the result of a
$234,000 increase in interchange income driven by higher debit card
usage. During the nine months ended March 31, 2022, $204.1 million
of residential mortgage loans originated for sale were sold with
gains of $5.6 million compared to $297.2 million sold and gains of
$7.7 million in the corresponding period in the prior year. There
were $43.5 million of sales of the guaranteed portion of SBA
commercial loans with gains of $4.5 million in the nine months
compared to $44.6 million sold and gains of $3.7 million for the
same period last year. The Company sold $97.2 million of HELOCs
during the nine months ended March 31, 2022 for a gain of $581,000
compared to $85.9 million sold and gains of $559,000 in the
corresponding period last year. Lastly, $11.5 million of indirect
auto finance loans were sold out of the held for investment
portfolio during the current period for a gain of $205,000. No such
sales occurred in the same period in the prior year.
Noninterest expense decreased $5.2 million, or
6.3%, for the nine months ended March 31, 2022 as compared to the
same period last year, which was primarily a result of a decrease
of $3.7 million in prepayment penalties on borrowings, a $1.8
million, or 3.9%, decrease in salaries and benefits expense due to
branch closures and lower mortgage banking incentive pay in the
period, and a reduction of core deposit amortization expense of
$397,000, or 65.6%, partially offset by an increase of $1.1
million, or 117.2%, in marketing and advertising expense driven by
reduced media advertising in prior periods as a result of the
pandemic as well as current year advertising for newly opened
locations.
For the nine months ended March 31, 2022, the
Company's income tax expense increased $1.9 million, or 31.2%, to
$8.0 million from $6.1 million primarily as a result of higher
taxable income. The effective tax rates for the nine months ended
March 31, 2022 and 2021 were 21.4% and 21.0%, respectively.
Balance Sheet Review
Total assets and liabilities increased by $17.1
million and $18.5 million to $3.5 billion and $3.1 billion,
respectively, at March 31, 2022 as compared to June 30, 2021.
Deposits increased by $103.6 million, or 3.5%, which were used to
continue paying down borrowings during the period. In addition,
excess liquidity from a $50.1 million, or 32.0%, decrease in debt
securities available for sale, a $33.7 million, or 1.2%, decrease
in loans receivable, a $12.0 million, or 29.9%, decrease in
certificates of deposits in other banks, and a $8.3 million, or
8.8%, decrease in loans held for sale was invested in commercial
paper which increased by $123.3 million, or 65.0%, during the
period.
The decrease in loans was driven by PPP
forgiveness of $43.9 million and a $98.5 million, or 12.9%,
decrease in retail consumer loans primarily within the one-to-four
family loans and indirect auto loan portfolios. This decrease was
partially offset by a $108.7 million, or 5.7%, increase in
commercial loans (excluding PPP loans) as the Company continues its
focus on the growth of the commercial loan segment.
Stockholders' equity decreased $1.4 million, or
0.4%, to $395.1 million at March 31, 2022 as compared to June 30,
2021. Activity within stockholders' equity included $29.6 million
in net income, $6.7 million in stock-based compensation expense and
option exercises, stock repurchases of $32.3 million, and $4.1
million in cash dividends declared. As of March 31, 2022, the Bank
was considered "well capitalized" in accordance with its regulatory
capital guidelines and exceeded all regulatory capital
requirements.
Asset Quality
The allowance for credit losses on loans was
$31.0 million, or 1.15%, of total loans at March 31, 2022 compared
to $35.5 million, or 1.30%, of total loans at June 30, 2021. The
overall decrease was driven by lower expected credit losses
estimated by management based on an improving economic outlook.
The provision for credit losses was a net
benefit of $4.0 million for the nine months ended March 31, 2022,
compared to a net benefit of $6.2 million for the corresponding
period in fiscal year 2021. Net loan charge-offs totaled $19,000
for the nine months ended March 31, 2022, compared to $452,000 for
the same period last year. Net charge-offs as a percentage of
average loans were 0.00% for the nine months ended March 31, 2022
compared to 0.02% for the corresponding period last year.
Nonperforming assets decreased by $7.0 million,
or 54.6%, to $5.8 million, or 0.16%, of total assets at March 31,
2022 compared to $12.8 million, or 0.36% of total assets at June
30, 2021. The significant decrease from June 30, 2021 was primarily
a result of the payoff of two commercial real estate loan
relationships totaling $5.1 million during the nine month period.
Nonperforming assets included $5.8 million in nonaccruing loans and
no REO at March 31, 2022, compared to $12.6 million and $188,000 in
nonaccruing loans and REO, respectively, at June 30, 2021.
Nonperforming loans to total loans was 0.22% at March 31, 2022 and
0.46% at June 30, 2021.
As of March 31, 2022, the Company had no loans
with full principal and interest payment deferrals related to
COVID-19 which had been granted prior to January 1, 2022, compared
to $107,000 at June 30, 2021. All loans placed on full payment
deferral during the pandemic have come out of deferral and
borrowers are either making regular loan payments or interest-only
payments. As of March 31, 2022, the Company had $9.6 million in
commercial loan deferrals on interest-only payments compared to
$78.9 million at June 30, 2021.
The ratio of classified assets to total assets
decreased to 0.61% at March 31, 2022 from 0.76% at June 30, 2021.
Classified assets decreased $5.0 million, or 18.5%, to $21.7
million at March 31, 2022 compared to $26.7 million at June 30,
2021 primarily due to the payoff of two commercial real estate loan
relationships discussed above.
About HomeTrust Bancshares,
Inc.
HomeTrust Bancshares, Inc. is the holding
company for the Bank. As of March 31, 2022, the Company had assets
of $3.5 billion. The Bank, founded in 1926, is a North Carolina
state chartered, community-focused financial institution committed
to providing value added relationship banking with over 30
locations as well as online/mobile channels. Locations include:
North Carolina (including the Asheville metropolitan area, the
"Piedmont" region, Charlotte, and Raleigh/Cary), Upstate South
Carolina (Greenville), East Tennessee (including Kingsport/Johnson
City, Knoxville, and Morristown) and Southwest Virginia (including
the Roanoke Valley).
Forward-Looking Statements
This press release includes "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements 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 are not historical
facts but instead represent management's current expectations and
forecasts regarding future events, many of which are inherently
uncertain and outside of the Company's control. Actual results may
differ, possibly materially, from those currently expected or
projected in these forward-looking statements. Factors that could
cause the Company's actual results to differ materially from those
described in the forward-looking statements include: the effect of
the COVID-19 pandemic, including on the Company's credit quality
and business operations, as well as its impact on general economic
and financial market conditions and other uncertainties resulting
from the COVID-19 pandemic, such as the extent and duration of the
impact on public health, the U.S. and global economies, and
consumer and corporate customers, including economic activity,
employment levels and market liquidity; increased competitive
pressures; changes in the interest rate environment; changes in
general economic conditions and conditions within the securities
markets; legislative and regulatory changes; and other factors
described in the Company's latest annual Report on Form 10-K and
Quarterly Reports on Form 10-Q and other documents filed with or
furnished to the Securities and Exchange Commission - which are
available on the Company's website at www.htb.com and on the
SEC's website at www.sec.gov. These risks could cause the Company's
actual results for fiscal 2022 and beyond to differ materially from
those expressed in any forward-looking statements by, or on behalf
of, the Company and could negatively affect its operating and stock
performance. Any of the forward-looking statements that the Company
makes in this press release or the documents they file with or
furnish to the SEC are based upon management's beliefs and
assumptions at the time they are made and may turn out to be wrong
because of inaccurate assumptions they might make, because of the
factors described above or because of other factors that they
cannot foresee. The Company does not undertake and specifically
disclaim any obligation to revise any forward-looking statements to
reflect the occurrence of anticipated or unanticipated events or
circumstances after the date of such statements.
WEBSITE: WWW.HTB.COM
Consolidated Balance Sheets (Unaudited)
| (Dollars in thousands) |
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021(1) |
|
March 31, 2021 |
| Assets |
|
|
|
|
|
|
|
|
|
|
Cash |
$ |
19,783 |
|
|
$ |
20,586 |
|
|
$ |
22,431 |
|
|
$ |
22,312 |
|
|
$ |
24,621 |
|
|
Interest-bearing deposits |
|
32,267 |
|
|
|
14,240 |
|
|
|
20,142 |
|
|
|
28,678 |
|
|
|
139,474 |
|
|
Cash and cash equivalents |
|
52,050 |
|
|
|
34,826 |
|
|
|
42,573 |
|
|
|
50,990 |
|
|
|
164,095 |
|
|
Commercial paper |
|
312,918 |
|
|
|
254,157 |
|
|
|
196,652 |
|
|
|
189,596 |
|
|
|
238,445 |
|
|
Certificates of deposit in other banks |
|
28,125 |
|
|
|
34,002 |
|
|
|
35,495 |
|
|
|
40,122 |
|
|
|
42,015 |
|
|
Debt securities available for sale, at fair value |
|
106,315 |
|
|
|
121,851 |
|
|
|
124,576 |
|
|
|
156,459 |
|
|
|
162,417 |
|
|
Other investments, at cost |
|
23,040 |
|
|
|
22,117 |
|
|
|
20,891 |
|
|
|
23,710 |
|
|
|
28,899 |
|
|
Loans held for sale |
|
85,263 |
|
|
|
102,070 |
|
|
|
105,161 |
|
|
|
93,539 |
|
|
|
86,708 |
|
|
Total loans, net of deferred loan fees and costs |
|
2,699,538 |
|
|
|
2,696,072 |
|
|
|
2,719,642 |
|
|
|
2,733,267 |
|
|
|
2,690,153 |
|
|
Allowance for credit losses - loans |
|
(31,034 |
) |
|
|
(30,933 |
) |
|
|
(34,406 |
) |
|
|
(35,468 |
) |
|
|
(36,059 |
) |
|
Loans, net |
|
2,668,504 |
|
|
|
2,665,139 |
|
|
|
2,685,236 |
|
|
|
2,697,799 |
|
|
|
2,654,094 |
|
|
Premises and equipment, net |
|
69,629 |
|
|
|
69,461 |
|
|
|
68,568 |
|
|
|
70,909 |
|
|
|
70,886 |
|
|
Accrued interest receivable |
|
7,980 |
|
|
|
8,200 |
|
|
|
8,429 |
|
|
|
7,933 |
|
|
|
8,271 |
|
|
Real estate owned ("REO") |
|
— |
|
|
|
45 |
|
|
|
45 |
|
|
|
188 |
|
|
|
143 |
|
|
Deferred income taxes, net |
|
12,494 |
|
|
|
12,019 |
|
|
|
15,722 |
|
|
|
16,901 |
|
|
|
16,889 |
|
|
Bank owned life insurance ("BOLI") |
|
94,740 |
|
|
|
94,209 |
|
|
|
93,679 |
|
|
|
93,108 |
|
|
|
93,877 |
|
|
Goodwill |
|
25,638 |
|
|
|
25,638 |
|
|
|
25,638 |
|
|
|
25,638 |
|
|
|
25,638 |
|
|
Core deposit intangibles, net |
|
135 |
|
|
|
185 |
|
|
|
250 |
|
|
|
343 |
|
|
|
473 |
|
|
Other assets |
|
54,954 |
|
|
|
58,900 |
|
|
|
58,445 |
|
|
|
57,488 |
|
|
|
55,763 |
|
|
Total assets |
$ |
3,541,785 |
|
|
$ |
3,502,819 |
|
|
$ |
3,481,360 |
|
|
$ |
3,524,723 |
|
|
$ |
3,648,613 |
|
| Liabilities and
stockholders' equity |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
Deposits |
$ |
3,059,157 |
|
|
$ |
2,998,691 |
|
|
$ |
2,987,284 |
|
|
$ |
2,955,541 |
|
|
$ |
2,908,478 |
|
|
Borrowings |
|
30,000 |
|
|
|
48,000 |
|
|
|
40,000 |
|
|
|
115,000 |
|
|
|
275,000 |
|
|
Other liabilities |
|
57,497 |
|
|
|
54,382 |
|
|
|
57,565 |
|
|
|
57,663 |
|
|
|
58,683 |
|
|
Total liabilities |
|
3,146,654 |
|
|
|
3,101,073 |
|
|
|
3,084,849 |
|
|
|
3,128,204 |
|
|
|
3,242,161 |
|
| Stockholders'
equity |
|
|
|
|
|
|
|
|
|
|
Preferred stock, $0.01 par value, 10,000,000 shares authorized,
none issued or outstanding |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Common stock, $0.01 par value, 60,000,000 shares authorized
(2) |
|
160 |
|
|
|
163 |
|
|
|
163 |
|
|
|
167 |
|
|
|
167 |
|
|
Additional paid in capital |
|
136,181 |
|
|
|
147,552 |
|
|
|
151,425 |
|
|
|
160,582 |
|
|
|
162,010 |
|
|
Retained earnings |
|
265,609 |
|
|
|
258,986 |
|
|
|
249,331 |
|
|
|
240,075 |
|
|
|
248,767 |
|
|
Unearned Employee Stock Ownership Plan ("ESOP") shares |
|
(5,422 |
) |
|
|
(5,555 |
) |
|
|
(5,687 |
) |
|
|
(5,819 |
) |
|
|
(5,951 |
) |
|
Accumulated other comprehensive income (loss) |
|
(1,397 |
) |
|
|
600 |
|
|
|
1,279 |
|
|
|
1,514 |
|
|
|
1,459 |
|
|
Total stockholders' equity |
|
395,131 |
|
|
|
401,746 |
|
|
|
396,511 |
|
|
|
396,519 |
|
|
|
406,452 |
|
|
Total liabilities and stockholders' equity |
$ |
3,541,785 |
|
|
$ |
3,502,819 |
|
|
$ |
3,481,360 |
|
|
$ |
3,524,723 |
|
|
$ |
3,648,613 |
|
_________________________________
(1) Derived from audited
financial statements. (2) Shares of common
stock issued and outstanding were 15,978,262 at March 31, 2022;
16,303,461 at December 31, 2021; 16,307,658 at September 30, 2021;
16,636,483 at June 30, 2021; and 16,655,347 at March 31,
2021. Consolidated Statements of Income
(Unaudited)
| |
Three Months Ended |
|
Nine Months Ended |
| (Dollars in thousands) |
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
March 31, 2022 |
|
March 31, 2021 |
| Interest and dividend
income |
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
26,616 |
|
|
$ |
26,929 |
|
|
$ |
27,629 |
|
|
$ |
81,440 |
|
|
$ |
84,564 |
|
|
Commercial paper and interest-bearing deposits |
|
563 |
|
|
|
468 |
|
|
|
611 |
|
|
$ |
1,362 |
|
|
|
2,106 |
|
|
Debt securities available for sale |
|
384 |
|
|
|
411 |
|
|
|
496 |
|
|
|
1,319 |
|
|
|
1,528 |
|
|
Other investments |
|
632 |
|
|
|
680 |
|
|
|
585 |
|
|
|
1,867 |
|
|
|
1,729 |
|
|
Total interest and dividend income |
|
28,195 |
|
|
|
28,488 |
|
|
|
29,321 |
|
|
|
85,988 |
|
|
|
89,927 |
|
| Interest
expense |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
1,151 |
|
|
|
1,305 |
|
|
|
1,996 |
|
|
|
4,028 |
|
|
|
7,596 |
|
|
Borrowings |
|
4 |
|
|
|
15 |
|
|
|
1,632 |
|
|
|
45 |
|
|
|
5,007 |
|
|
Total interest expense |
|
1,155 |
|
|
|
1,320 |
|
|
|
3,628 |
|
|
|
4,073 |
|
|
|
12,603 |
|
| Net interest
income |
|
27,040 |
|
|
|
27,168 |
|
|
|
25,693 |
|
|
|
81,915 |
|
|
|
77,324 |
|
| Provision (benefit)
for credit losses |
|
(45 |
) |
|
|
(2,500 |
) |
|
|
(4,100 |
) |
|
|
(4,005 |
) |
|
|
(6,180 |
) |
| Net interest income
after provision (benefit) for credit losses |
|
27,085 |
|
|
|
29,668 |
|
|
|
29,793 |
|
|
|
85,920 |
|
|
|
83,504 |
|
| Noninterest
income |
|
|
|
|
|
|
|
|
|
|
Service charges and fees on deposit accounts |
|
2,216 |
|
|
|
2,513 |
|
|
|
2,194 |
|
|
|
7,101 |
|
|
|
6,707 |
|
|
Loan income and fees |
|
752 |
|
|
|
805 |
|
|
|
636 |
|
|
|
2,536 |
|
|
|
1,679 |
|
|
Gain on sale of loans held for sale |
|
2,969 |
|
|
|
3,901 |
|
|
|
4,881 |
|
|
|
10,927 |
|
|
|
11,929 |
|
|
BOLI income |
|
492 |
|
|
|
490 |
|
|
|
508 |
|
|
|
1,500 |
|
|
|
1,551 |
|
|
Operating lease income |
|
1,661 |
|
|
|
1,718 |
|
|
|
1,432 |
|
|
|
4,920 |
|
|
|
4,107 |
|
|
Other |
|
857 |
|
|
|
753 |
|
|
|
1,027 |
|
|
|
2,496 |
|
|
|
2,688 |
|
|
Total noninterest income |
|
8,947 |
|
|
|
10,180 |
|
|
|
10,678 |
|
|
|
29,480 |
|
|
|
28,661 |
|
| Noninterest
expense |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
14,730 |
|
|
|
14,872 |
|
|
|
15,784 |
|
|
|
44,882 |
|
|
|
46,691 |
|
|
Occupancy expense, net |
|
2,483 |
|
|
|
2,401 |
|
|
|
2,456 |
|
|
|
7,201 |
|
|
|
7,010 |
|
|
Computer services |
|
2,455 |
|
|
|
2,369 |
|
|
|
2,581 |
|
|
|
7,148 |
|
|
|
7,108 |
|
|
Telephone, postage, and supplies |
|
686 |
|
|
|
735 |
|
|
|
812 |
|
|
|
2,133 |
|
|
|
2,345 |
|
|
Marketing and advertising |
|
573 |
|
|
|
832 |
|
|
|
319 |
|
|
|
2,110 |
|
|
|
971 |
|
|
Deposit insurance premiums |
|
412 |
|
|
|
302 |
|
|
|
363 |
|
|
|
1,280 |
|
|
|
1,361 |
|
|
REO related expense, net |
|
220 |
|
|
|
116 |
|
|
|
84 |
|
|
|
478 |
|
|
|
462 |
|
|
Core deposit intangible amortization |
|
50 |
|
|
|
65 |
|
|
|
165 |
|
|
|
208 |
|
|
|
605 |
|
|
Prepayment penalties on borrowings |
|
— |
|
|
|
— |
|
|
|
3,656 |
|
|
|
— |
|
|
|
3,656 |
|
|
Other |
|
4,190 |
|
|
|
4,217 |
|
|
|
4,286 |
|
|
|
12,285 |
|
|
|
12,740 |
|
|
Total noninterest expense |
|
25,799 |
|
|
|
25,909 |
|
|
|
30,506 |
|
|
|
77,725 |
|
|
|
82,949 |
|
| Net income before
income taxes |
|
10,233 |
|
|
|
13,939 |
|
|
|
9,965 |
|
|
|
37,675 |
|
|
|
29,216 |
|
| Income tax
expense |
|
2,210 |
|
|
|
2,861 |
|
|
|
2,096 |
|
|
|
8,047 |
|
|
|
6,133 |
|
| Net
income |
$ |
8,023 |
|
|
$ |
11,078 |
|
|
$ |
7,869 |
|
|
$ |
29,628 |
|
|
$ |
23,083 |
|
Per Share Data
| |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
March 31, 2022 |
|
March 31, 2021 |
| Net income per common
share:(1) |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.51 |
|
$ |
0.70 |
|
$ |
0.49 |
|
$ |
1.87 |
|
$ |
1.42 |
|
Diluted |
|
$ |
0.51 |
|
$ |
0.68 |
|
$ |
0.48 |
|
$ |
1.84 |
|
$ |
1.40 |
| Average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
15,523,813 |
|
|
15,632,283 |
|
|
15,979,590 |
|
|
15,666,093 |
|
|
16,139,059 |
|
Diluted |
|
|
15,793,012 |
|
|
15,989,606 |
|
|
16,485,718 |
|
|
15,997,377 |
|
|
16,339,130 |
| Book value per share at end of
period |
|
$ |
24.73 |
|
$ |
24.64 |
|
$ |
24.40 |
|
$ |
24.73 |
|
$ |
24.40 |
| Tangible book value per share
at end of period (2) |
|
$ |
23.12 |
|
$ |
23.06 |
|
$ |
22.84 |
|
$ |
23.13 |
|
$ |
22.84 |
| Cash dividends declared per
common share |
|
$ |
0.09 |
|
$ |
0.09 |
|
$ |
0.08 |
|
$ |
0.26 |
|
$ |
0.23 |
| Total shares outstanding at
end of period |
|
|
15,978,262 |
|
|
16,303,461 |
|
|
16,655,347 |
|
|
15,978,262 |
|
|
16,655,347 |
_________________________________
(1) Basic and diluted net
income per common share have been prepared in accordance with the
two-class method.(2) See Non-GAAP
reconciliation tables below for adjustments.
Selected Financial Ratios and Other
Data
| |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
March 31, 2022 |
|
March 31, 2021 |
| Performance
ratios: (1) |
|
|
|
|
|
|
|
Return on assets (ratio of net income to average total assets) |
|
0.92 |
% |
|
1.24 |
% |
|
0.84 |
% |
|
1.12 |
% |
|
0.83 |
% |
| Return on
equity (ratio of net income to average equity) |
|
8.15 |
|
|
11.02 |
|
|
7.78 |
|
|
9.91 |
|
|
7.64 |
|
| Tax equivalent yield on earning
assets(2) |
|
3.54 |
|
|
3.49 |
|
|
3.44 |
|
|
3.54 |
|
|
3.51 |
|
| Rate paid on interest-bearing
liabilities |
|
0.20 |
|
|
0.22 |
|
|
0.54 |
|
|
0.23 |
|
|
0.62 |
|
| Tax equivalent average
interest rate spread (2) |
|
3.34 |
|
|
3.27 |
|
|
2.90 |
|
|
3.31 |
|
|
2.89 |
|
| Tax equivalent net interest
margin(2) (3) |
|
3.39 |
|
|
3.33 |
|
|
3.02 |
|
|
3.38 |
|
|
3.02 |
|
| Average
interest-earning assets to average interest-bearing
liabilities |
|
137.72 |
|
|
139.06 |
|
|
127.59 |
|
|
138.24 |
|
|
126.60 |
|
| Noninterest expense to average
total assets |
|
2.97 |
|
|
2.91 |
|
|
3.25 |
|
|
2.94 |
|
|
2.98 |
|
| Efficiency ratio |
|
71.69 |
|
|
69.37 |
|
|
83.87 |
|
|
69.77 |
|
|
78.26 |
|
| Efficiency ratio - adjusted
(4) |
|
71.06 |
|
|
68.81 |
|
|
73.17 |
|
|
69.19 |
|
|
74.16 |
|
_________________________________
(1) Ratios are annualized
where appropriate.(2) The weighted average
rate for municipal leases is adjusted for a 24% combined federal
and state tax rate since the interest from these leases is tax
exempt. (3) Net interest income divided by
average interest-earning assets.(4) See
Non-GAAP reconciliation tables below for adjustments.
| |
Three Months Ended |
| |
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021(1) |
|
March 31, 2021 |
| Asset quality
ratios: |
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets(1) |
0.16 |
% |
|
0.18 |
% |
|
0.19 |
% |
|
0.36 |
% |
|
0.37 |
% |
| Nonperforming loans to total
loans(1) |
0.22 |
|
|
0.23 |
|
|
0.25 |
|
|
0.46 |
|
|
0.49 |
|
| Total classified assets to
total assets |
0.61 |
|
|
0.65 |
|
|
0.65 |
|
|
0.76 |
|
|
0.76 |
|
| Allowance for credit losses to
nonperforming loans(1) |
534.06 |
|
|
500.70 |
|
|
510.63 |
|
|
281.38 |
|
|
272.64 |
|
| Allowance for credit losses to
total loans |
1.15 |
|
|
1.15 |
|
|
1.27 |
|
|
1.30 |
|
|
1.34 |
|
| Net charge-offs (recoveries)
to average loans (annualized) |
(0.11 |
) |
|
0.15 |
|
|
(0.04 |
) |
|
(0.04 |
) |
|
(0.03 |
) |
| Capital
ratios: |
|
|
|
|
|
|
|
|
|
| Equity to total assets at end
of period |
11.16 |
% |
|
11.47 |
% |
|
11.39 |
% |
|
11.25 |
% |
|
11.14 |
% |
| Tangible equity to total
tangible assets(2) |
10.51 |
|
|
10.81 |
|
|
10.73 |
|
|
10.59 |
|
|
10.50 |
|
| Average equity to average
assets |
11.32 |
|
|
11.28 |
|
|
11.27 |
|
|
11.06 |
|
|
10.79 |
|
_________________________________
(1) Nonperforming assets
include nonaccruing loans, consisting of certain restructured
loans, and REO. There were no accruing loans more than 90 days past
due at the dates indicated. At March 31, 2022, there were $1.8
million of restructured loans included in nonaccruing loans and
$2.9 million, or 50.6% of nonaccruing loans were current on their
loan payments. (2) See Non-GAAP
reconciliation tables below for adjustments.
Average Balance Sheet Data
| |
Three Months Ended |
| (Dollars in thousands) |
March 31, 2022 |
|
March 31, 2021 |
| |
AverageBalanceOutstanding |
|
InterestEarned/Paid(2) |
|
Yield/Rate(2) |
|
AverageBalanceOutstanding |
|
InterestEarned/Paid(2) |
|
Yield/Rate(2) |
| |
|
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable(1)(2) |
$ |
2,791,650 |
|
|
$ |
26,936 |
|
3.91 |
% |
|
$ |
2,779,094 |
|
|
$ |
27,955 |
|
4.08 |
% |
| Commercial paper and deposits
in other banks |
|
342,878 |
|
|
|
563 |
|
0.67 |
|
|
|
522,256 |
|
|
|
611 |
|
0.47 |
|
| Debt securities available for
sale |
|
111,874 |
|
|
|
384 |
|
1.39 |
|
|
|
153,871 |
|
|
|
496 |
|
1.31 |
|
| Other interest-earning
assets(3) |
|
22,614 |
|
|
|
632 |
|
11.33 |
|
|
|
39,184 |
|
|
|
585 |
|
6.05 |
|
|
Total interest-earning assets |
|
3,269,016 |
|
|
|
28,515 |
|
3.54 |
% |
|
|
3,494,405 |
|
|
|
29,647 |
|
3.44 |
% |
| Other assets |
|
258,126 |
|
|
|
|
|
|
|
258,858 |
|
|
|
|
|
|
Total assets |
$ |
3,527,142 |
|
|
|
|
|
|
$ |
3,753,263 |
|
|
|
|
|
| Liabilities and
equity: |
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
deposits: |
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing checking
accounts |
|
650,072 |
|
|
|
310 |
|
0.19 |
% |
|
|
637,381 |
|
|
|
391 |
|
0.25 |
% |
| Money market accounts |
|
1,020,734 |
|
|
|
340 |
|
0.14 |
|
|
|
907,228 |
|
|
|
373 |
|
0.17 |
|
| Savings accounts |
|
227,936 |
|
|
|
40 |
|
0.07 |
|
|
|
212,809 |
|
|
|
39 |
|
0.08 |
|
| Certificate accounts |
|
441,314 |
|
|
|
461 |
|
0.42 |
|
|
|
516,221 |
|
|
|
1,193 |
|
0.94 |
|
|
Total interest-bearing deposits |
|
2,340,056 |
|
|
|
1,151 |
|
0.20 |
|
|
|
2,273,639 |
|
|
|
1,996 |
|
0.36 |
|
| Borrowings |
|
33,599 |
|
|
|
4 |
|
0.05 |
|
|
|
465,111 |
|
|
|
1,632 |
|
1.42 |
|
| Total
interest-bearing liabilities |
|
2,373,655 |
|
|
|
1,155 |
|
0.20 |
% |
|
|
2,738,750 |
|
|
|
3,628 |
|
0.54 |
% |
| Noninterest-bearing
deposits |
|
714,753 |
|
|
|
|
|
|
|
553,045 |
|
|
|
|
|
| Other liabilities |
|
39,374 |
|
|
|
|
|
|
|
56,655 |
|
|
|
|
|
|
Total liabilities |
|
3,127,782 |
|
|
|
|
|
|
|
3,348,450 |
|
|
|
|
|
| Stockholders' equity |
|
399,360 |
|
|
|
|
|
|
|
404,813 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
3,527,142 |
|
|
|
|
|
|
$ |
3,753,263 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Net earning assets |
$ |
895,361 |
|
|
|
|
|
|
$ |
755,655 |
|
|
|
|
|
| Average interest-earning
assets to |
|
|
|
|
|
|
|
|
|
|
|
|
average interest-bearing liabilities |
|
137.72 |
% |
|
|
|
|
|
|
127.59 |
% |
|
|
|
|
| Tax-equivalent: |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$ |
27,360 |
|
|
|
|
|
$ |
26,019 |
|
|
|
Interest rate spread |
|
|
|
|
3.34 |
% |
|
|
|
|
|
2.90 |
% |
|
Net interest margin(4) |
|
|
|
|
3.39 |
% |
|
|
|
|
|
3.02 |
% |
| Non-tax-equivalent: |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$ |
27,040 |
|
|
|
|
|
$ |
25,693 |
|
|
|
Interest rate spread |
|
|
|
|
3.30 |
% |
|
|
|
|
|
2.87 |
% |
|
Net interest margin(4) |
|
|
|
|
3.35 |
% |
|
|
|
|
|
2.98 |
% |
_________________________________
(1) The average loans
receivable balances include loans held for sale and nonaccruing
loans.(2) Interest income used in the
average interest earned and yield calculation includes the tax
equivalent adjustment of $320 and $326 for the three months ended
March 31, 2022 and 2021, respectively, calculated based on a
combined federal and state tax rate of
24%.(3) The average other interest-earning
assets consist of FRB stock, FHLB stock, and SBIC
investments.(4) Net interest income divided
by average interest-earning assets.
| |
Nine Months Ended |
| (Dollars in thousands) |
March 31, 2022 |
|
March 31, 2021 |
| |
AverageBalanceOutstanding |
|
InterestEarned/Paid(2) |
|
Yield/Rate(2) |
|
AverageBalanceOutstanding |
|
InterestEarned/Paid(2) |
|
Yield/Rate(2) |
| |
|
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable(1)(2) |
$ |
2,810,205 |
|
|
$ |
82,377 |
|
3.90 |
% |
|
$ |
2,826,886 |
|
|
$ |
85,505 |
|
4.03 |
% |
| Commercial paper and deposits in
other banks |
|
311,457 |
|
|
|
1,362 |
|
0.58 |
|
|
|
454,609 |
|
|
|
2,106 |
|
0.62 |
|
| Debt securities available for
sale |
|
124,053 |
|
|
|
1,319 |
|
1.42 |
|
|
|
131,332 |
|
|
|
1,528 |
|
1.55 |
|
| Other interest-earning
assets(3) |
|
22,218 |
|
|
|
1,867 |
|
11.19 |
|
|
|
39,140 |
|
|
|
1,729 |
|
5.88 |
|
|
Total interest-earning assets |
|
3,267,933 |
|
|
|
86,925 |
|
3.54 |
% |
|
|
3,451,967 |
|
|
|
90,868 |
|
3.51 |
% |
| Other assets |
|
259,570 |
|
|
|
|
|
|
|
256,026 |
|
|
|
|
|
|
Total assets |
$ |
3,527,503 |
|
|
|
|
|
|
$ |
3,707,993 |
|
|
|
|
|
| Liabilities and
equity: |
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing checking
accounts |
|
640,194 |
|
|
|
1,038 |
|
0.22 |
% |
|
|
593,815 |
|
|
|
1,142 |
|
0.26 |
% |
| Money market accounts |
|
1,002,542 |
|
|
|
1,056 |
|
0.14 |
|
|
|
860,170 |
|
|
|
1,337 |
|
0.21 |
|
| Savings accounts |
|
224,664 |
|
|
|
120 |
|
0.07 |
|
|
|
206,478 |
|
|
|
114 |
|
0.07 |
|
| Certificate accounts |
|
447,623 |
|
|
|
1,814 |
|
0.54 |
|
|
|
594,565 |
|
|
|
5,003 |
|
1.12 |
|
|
Total interest-bearing deposits |
|
2,315,023 |
|
|
|
4,028 |
|
0.23 |
|
|
|
2,255,028 |
|
|
|
7,596 |
|
0.45 |
|
| Borrowings |
|
48,894 |
|
|
|
45 |
|
0.12 |
|
|
|
471,716 |
|
|
|
5,007 |
|
1.41 |
|
|
Total interest-bearing
liabilities |
|
2,363,917 |
|
|
|
4,073 |
|
0.23 |
% |
|
|
2,726,744 |
|
|
|
12,603 |
|
0.62 |
% |
| Noninterest-bearing
deposits |
|
719,872 |
|
|
|
|
|
|
|
522,406 |
|
|
|
|
|
| Other liabilities |
|
45,443 |
|
|
|
|
|
|
|
56,141 |
|
|
|
|
|
|
Total liabilities |
|
3,129,232 |
|
|
|
|
|
|
|
3,305,291 |
|
|
|
|
|
| Stockholders' equity |
|
398,271 |
|
|
|
|
|
|
|
402,702 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
3,527,503 |
|
|
|
|
|
|
$ |
3,707,993 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Net earning assets |
$ |
904,016 |
|
|
|
|
|
|
$ |
725,223 |
|
|
|
|
|
| Average interest-earning
assets to |
|
|
|
|
|
|
|
|
|
|
|
|
average interest-bearing liabilities |
|
138.24 |
% |
|
|
|
|
|
|
126.60 |
% |
|
|
|
|
| Tax-equivalent: |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$ |
82,852 |
|
|
|
|
|
$ |
78,265 |
|
|
|
Interest rate spread |
|
|
|
|
3.31 |
% |
|
|
|
|
|
2.89 |
% |
|
Net interest margin(4) |
|
|
|
|
3.38 |
% |
|
|
|
|
|
3.02 |
% |
| Non-tax-equivalent: |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$ |
81,915 |
|
|
|
|
|
$ |
77,323 |
|
|
|
Interest rate spread |
|
|
|
|
3.28 |
% |
|
|
|
|
|
2.85 |
% |
|
Net interest margin(4) |
|
|
|
|
3.34 |
% |
|
|
|
|
|
2.98 |
% |
_________________________________
(1) The average loans
receivable balances include loans held for sale and nonaccruing
loans.(2) Interest income
used in the average interest earned and yield calculation includes
the tax equivalent adjustment of $937 and $942 for the nine months
ended March 31, 2022 and 2021, respectively, calculated based on a
combined federal and state tax rate of
24%.(3) The average other interest-earning
assets consist of FRB stock, FHLB stock, and SBIC
investments.(4) Net interest income divided
by average interest-earning assets.
Loans
| (Dollars in thousands) |
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021(1) |
|
March 31, 2021 |
| Commercial loans: |
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
$ |
1,102,184 |
|
|
$ |
1,113,330 |
|
|
$ |
1,132,764 |
|
|
$ |
1,142,276 |
|
|
$ |
1,088,178 |
|
|
Construction and development |
|
251,668 |
|
|
|
226,439 |
|
|
|
187,900 |
|
|
|
179,427 |
|
|
|
162,820 |
|
|
Commercial and industrial |
|
167,342 |
|
|
|
162,396 |
|
|
|
153,612 |
|
|
|
141,341 |
|
|
|
140,579 |
|
|
Equipment finance |
|
378,629 |
|
|
|
367,008 |
|
|
|
341,995 |
|
|
|
317,920 |
|
|
|
291,950 |
|
|
Municipal leases |
|
130,260 |
|
|
|
131,078 |
|
|
|
142,100 |
|
|
|
140,421 |
|
|
|
129,141 |
|
|
PPP loans |
|
2,756 |
|
|
|
19,044 |
|
|
|
28,762 |
|
|
|
46,650 |
|
|
|
73,090 |
|
| Total commercial loans |
|
2,032,839 |
|
|
|
2,019,295 |
|
|
|
1,987,133 |
|
|
|
1,968,035 |
|
|
|
1,885,758 |
|
| Retail consumer loans |
|
|
|
|
|
|
|
|
|
|
One-to-four family |
|
347,945 |
|
|
|
356,850 |
|
|
|
384,901 |
|
|
|
406,549 |
|
|
|
430,001 |
|
|
HELOCs - originated |
|
128,445 |
|
|
|
128,189 |
|
|
|
129,791 |
|
|
|
130,225 |
|
|
|
131,867 |
|
|
HELOCs - purchased |
|
26,911 |
|
|
|
30,795 |
|
|
|
33,943 |
|
|
|
38,976 |
|
|
|
46,086 |
|
|
Construction and land/lots |
|
72,735 |
|
|
|
69,253 |
|
|
|
69,835 |
|
|
|
66,027 |
|
|
|
68,118 |
|
|
Indirect auto finance |
|
83,903 |
|
|
|
84,581 |
|
|
|
106,184 |
|
|
|
115,093 |
|
|
|
119,656 |
|
|
Consumer |
|
6,760 |
|
|
|
7,109 |
|
|
|
7,855 |
|
|
|
8,362 |
|
|
|
8,667 |
|
| Total retail consumer
loans |
|
666,699 |
|
|
|
676,777 |
|
|
|
732,509 |
|
|
|
765,232 |
|
|
|
804,395 |
|
| Total loans, net of deferred
loan fees and costs |
|
2,699,538 |
|
|
|
2,696,072 |
|
|
|
2,719,642 |
|
|
|
2,733,267 |
|
|
|
2,690,153 |
|
|
Allowance for credit losses - loans |
|
(31,034 |
) |
|
|
(30,933 |
) |
|
|
(34,406 |
) |
|
|
(35,468 |
) |
|
|
(36,059 |
) |
| Loans, net |
$ |
2,668,504 |
|
|
$ |
2,665,139 |
|
|
$ |
2,685,236 |
|
|
$ |
2,697,799 |
|
|
$ |
2,654,094 |
|
Deposits
| (Dollars in thousands) |
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021(1) |
|
March 31, 2021 |
| Core deposits: |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing accounts |
$ |
704,344 |
|
$ |
677,159 |
|
$ |
711,764 |
|
$ |
636,414 |
|
$ |
528,711 |
|
NOW accounts |
|
652,577 |
|
|
644,343 |
|
|
621,675 |
|
|
644,958 |
|
|
727,240 |
|
Money market accounts |
|
1,026,595 |
|
|
1,010,901 |
|
|
987,650 |
|
|
975,001 |
|
|
927,519 |
|
Savings accounts |
|
232,831 |
|
|
224,474 |
|
|
220,614 |
|
|
226,391 |
|
|
221,537 |
| Total core deposits |
|
2,616,347 |
|
|
2,556,877 |
|
|
2,541,703 |
|
|
2,482,764 |
|
|
2,405,007 |
| Certificates of deposit |
|
442,810 |
|
|
441,814 |
|
|
445,581 |
|
|
472,777 |
|
|
503,471 |
| Total deposits |
$ |
3,059,157 |
|
$ |
2,998,691 |
|
$ |
2,987,284 |
|
$ |
2,955,541 |
|
$ |
2,908,478 |
Non-GAAP Reconciliations
In addition to results presented in accordance
with generally accepted accounting principles utilized in the
United States ("GAAP"), this earnings release contains certain
non-GAAP financial measures, which include: the efficiency ratio;
tangible book value; tangible book value per share; tangible equity
to tangible assets ratio; and the ratio of the allowance for credit
losses to total loans excluding PPP loans. The Company believes
these non-GAAP financial measures and ratios as presented are
useful for both investors and management to understand the effects
of certain items and provide an alternative view of its performance
over time and in comparison to its competitors. These non-GAAP
measures have inherent limitations, are not required to be
uniformly applied and are not audited. They should not be
considered in isolation or as a substitute for total stockholders'
equity or operating results determined in accordance with GAAP.
These non-GAAP measures may not be comparable to similarly titled
measures reported by other companies.
Set forth below is a reconciliation to GAAP of the Company's
efficiency ratio:
| |
|
Three Months Ended |
|
Nine Months Ended |
| (Dollars in thousands) |
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
March 31, 2022 |
|
March 31, 2021 |
|
Noninterest expense |
|
$ |
25,799 |
|
|
$ |
25,909 |
|
|
$ |
30,506 |
|
|
$ |
77,725 |
|
|
$ |
82,949 |
|
| Less: prepayment penalties on
borrowings |
|
|
— |
|
|
|
— |
|
|
|
3,656 |
|
|
|
— |
|
|
|
3,656 |
|
| Noninterest expense |
|
$ |
25,799 |
|
|
$ |
25,909 |
|
|
$ |
26,850 |
|
|
$ |
77,725 |
|
|
$ |
79,293 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Net interest income |
|
$ |
27,040 |
|
|
$ |
27,168 |
|
|
$ |
25,693 |
|
|
$ |
81,915 |
|
|
$ |
77,324 |
|
| Plus: noninterest income |
|
|
8,947 |
|
|
|
10,180 |
|
|
|
10,678 |
|
|
|
29,480 |
|
|
|
28,661 |
|
| Plus: tax equivalent
adjustment |
|
|
320 |
|
|
|
307 |
|
|
|
326 |
|
|
|
937 |
|
|
|
942 |
|
| Net interest
income plus noninterest income – adjusted |
|
$ |
36,307 |
|
|
$ |
37,655 |
|
|
$ |
36,697 |
|
|
$ |
112,332 |
|
|
$ |
106,927 |
|
| Efficiency ratio |
|
|
71.69 |
% |
|
|
69.37 |
% |
|
|
83.87 |
% |
|
|
69.77 |
% |
|
|
78.26 |
% |
| Efficiency ratio - adjusted |
|
|
71.06 |
% |
|
|
68.81 |
% |
|
|
73.17 |
% |
|
|
69.19 |
% |
|
|
74.16 |
% |
Set forth below is a reconciliation to GAAP of tangible book
value and tangible book value per share:
| (Dollars in thousands, except per
share data) |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021(1) |
|
March 31, 2021 |
|
Total stockholders' equity |
|
$ |
395,131 |
|
$ |
401,746 |
|
$ |
396,511 |
|
$ |
396,519 |
|
$ |
406,452 |
| Less:
goodwill, core deposit intangibles, net of taxes |
|
|
25,742 |
|
|
25,780 |
|
|
25,830 |
|
|
25,902 |
|
|
26,002 |
| Tangible book value |
|
$ |
369,389 |
|
$ |
375,966 |
|
$ |
370,681 |
|
$ |
370,617 |
|
$ |
380,450 |
| Common shares outstanding |
|
|
15,978,262 |
|
|
16,303,461 |
|
|
16,307,658 |
|
|
16,636,483 |
|
|
16,655,347 |
| Tangible book value per
share |
|
$ |
23.12 |
|
$ |
23.06 |
|
$ |
22.73 |
|
$ |
22.28 |
|
$ |
22.84 |
| Book value per share |
|
$ |
24.73 |
|
$ |
24.64 |
|
$ |
24.31 |
|
$ |
23.83 |
|
$ |
24.40 |
Set forth below is a reconciliation to GAAP of tangible equity
to tangible assets:
| (Dollars in thousands) |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021(1) |
|
March 31, 2021 |
|
Tangible equity(1) |
|
$ |
369,389 |
|
|
$ |
375,966 |
|
|
$ |
370,681 |
|
|
$ |
370,617 |
|
|
$ |
380,450 |
|
| Total assets |
|
|
3,541,785 |
|
|
|
3,502,819 |
|
|
|
3,481,360 |
|
|
|
3,524,723 |
|
|
|
3,648,613 |
|
| Less: goodwill, core deposit
intangibles, net of taxes |
|
|
25,742 |
|
|
|
25,780 |
|
|
|
25,830 |
|
|
|
25,902 |
|
|
|
26,002 |
|
| Total tangible assets |
|
$ |
3,516,043 |
|
|
$ |
3,477,039 |
|
|
$ |
3,455,530 |
|
|
$ |
3,498,821 |
|
|
$ |
3,622,611 |
|
| Tangible equity to tangible
assets |
|
|
10.51 |
% |
|
|
10.81 |
% |
|
|
10.73 |
% |
|
|
10.59 |
% |
|
|
10.50 |
% |
_________________________________
(1) Tangible equity (or
tangible book value) is equal to total stockholders' equity less
goodwill and core deposit intangibles, net of related deferred tax
liabilities.
Contact:
Dana L. Stonestreet – Chairman and Chief Executive Officer
C. Hunter Westbrook – President and Chief Operating Officer
Tony J. VunCannon – Executive Vice President, Chief Financial Officer, Corporate Secretary and Treasurer
828-259-3939
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