Limestone Bancorp, Inc. (NASDAQ: LMST) (“the
Company”), parent company of Limestone Bank (“the Bank”), today
reported unaudited results for the fourth quarter and full year of
2020. Net income available to common shareholders for the fourth
quarter of 2020 was $3.1 million, or $0.42 per basic and diluted
common share, compared with $1.8 million, or $0.24 per basic and
diluted share, for the fourth quarter of 2019. Net income for the
twelve months ended December 31, 2020, was $9.0 million, or $1.20
per diluted common share, compared with net income of $10.5
million, or $1.41 per diluted share, for the twelve months ended
December 31, 2019.
“While 2020 will likely be remembered as a challenging year, I
am proud of the work accomplished by the Limestone Bank team,"
stated John T. Taylor, President and CEO. "Fighting the headwinds
of the pandemic, our team adjusted to the COVID environment by
providing support to our communities and customers through
participation in the SBA Paycheck Protection Program and the relief
prescribed in the CARES Act. We did all this while implementing
measures to ensure our personnel were safe and healthy to serve our
customers. The team at Limestone quickly reacted to the falling
interest rate environment, grew earning assets, and continued to
successfully grow our franchise value by onboarding high quality
core deposit relationships. The long-term impact of the pandemic
may not yet be fully known, but we believe we are well-positioned
for the future with a scalable community banking platform as well
as sound credit metrics and reserves.”
Income Taxes - Net income before taxes was $10.6 million
for the year ended December 31, 2020, compared with $11.0 million
for the year ended 2019. Income tax expense was $1.6 million for
2020 compared to $480,000 for 2019. For 2020 and 2019, income tax
expense benefitted from the establishment of a net deferred tax
asset related to a change in Kentucky tax law enacted during 2019.
Income tax expense benefitted $478,000 and $1.6 million for the
years ended December 31, 2020 and 2019, respectively, or $0.06 per
basic and diluted common share, and $0.21 per basic and diluted
common share, respectively. The new Kentucky income tax went into
effect on January 1, 2021.
Net Interest Income – Net interest income increased to
$10.8 million for the fourth quarter of 2020, compared to $9.9
million for the third quarter of 2020, and $8.9 million for the
fourth quarter of 2019. Average loans increased to $965.3 million
for the fourth quarter of 2020, compared to $963.5 million for the
third quarter of 2020, and $846.2 million for the fourth quarter of
2019. Average loans for 2020 were positively impacted by the branch
purchase transaction on November 15, 2019, which included $126.8
million in loans at the time of purchase, as well as $42.4 million
of 2020 loan originations under the SBA Paycheck Protection
Program. After forgiveness and paydowns, PPP loans declined to
$20.3 million at December 31, 2020. Net interest margin increased
to 3.53% for the fourth quarter of 2020, compared with 3.27% for
the third quarter of 2020, and 3.23% for the fourth quarter of
2019.
The yield on earning assets increased to 4.12% in the fourth
quarter of 2020, compared to 3.98% in the third quarter of 2020,
and decreased compared to 4.57% in the fourth quarter of 2019. The
yield on earning assets for the third and fourth quarters of 2020
were negatively impacted by lower interest rates on the Bank’s fed
funds, certain floating rate investment securities, and loans with
variable rate repricing features. Loan fee income can meaningfully
impact net interest income, loan yields, and net interest margin.
The amount of loan fee income included in total interest income was
$1.0 million, $387,000, and $218,000 for the quarters ended
December 31, 2020, September 30, 2020, and December 31, 2019,
respectively. This represents 33 basis points, 13 basis points, and
eight basis points of yield on earning assets and net interest
margin for the quarters ended December 31, 2020, September 30,
2020, and December 31, 2019, respectively. Loan fee income for the
fourth quarter of 2020 included $767,000 in fees earned on SBA PPP
loans, as compared to $195,000 in the third quarter of 2020.
The cost of interest-bearing liabilities was 0.76% for the
fourth quarter of 2020, compared to 0.90% in the third quarter of
2020, and 1.65% in the fourth quarter of 2019. The cost of
interest-bearing liabilities continued to decline primarily based
on the downward repricing of time deposits. Time deposits declined
$30.9 million during the fourth quarter of 2020 as approximately
$84.7 million of time deposits with an average rate of 1.01%
matured or repriced at lower interest rates. During the fourth
quarter of 2020, newly originated or renewed time deposits had an
average rate of 0.33% and a weighted average term of approximately
19 months.
Net interest income increased to $40.6 million for the year
ended December 31, 2020, compared with $35.4 million for 2019.
Average loans increased to $964.1 million for 2020, compared with
$801.8 million for 2019. Average loans were positively impacted by
the branch purchase transaction on November 15, 2019, along with
loan growth during 2019 and 2020, as well as SBA PPP loan
originations as discussed above. Net interest margin decreased to
3.36% for 2020, compared with 3.40% for 2019.
The yield on earning assets decreased to 4.20% for year ended
December 31, 2020, compared to 4.76% for 2019. The amount of loan
fee income included in total interest income was $2.1 million and
$1.2 million for the year ended December 31, 2020 and December 31,
2019, respectively. This represents 18 basis points and 11 basis
points of yield on earning assets and net interest margin for 2020
and 2019, respectively. Loan fee income for the year ended December
31, 2020, included $1.1 million in fees earned on SBA PPP loans.
The cost of interest-bearing liabilities was 1.05% for 2020,
compared to 1.66% for 2019.
As of December 31, 2020, time deposits comprise $367.6 million
of the Company’s liabilities including $104.9 million with a
current average rate of 0.99%, which reprice or mature in the first
quarter of 2021. The following table denotes contractual time
deposit maturities and average rates as of December 31, 2020:
Maturity
Quarter
As of
December 31,
2020
(in thousands)
Weighted
Average
Rate
Q1-2021
104,874
0.99
Q2-2021
102,627
0.57
Q3-2021
42,557
0.59
Q4-2021
21,782
0.50
Q1-2022
11,034
0.80
Thereafter
84,678
1.18
Total time deposits
$
367,552
0.84
%
Investment Securities – The securities portfolio serves
as a source of liquidity and earnings and contributes to the
management of interest rate risk. Investments are made in various
types of liquid assets, including U.S. Treasury obligations and
securities of various federal agencies, obligations of states and
political subdivisions, corporate bonds, and collateralized loan
obligations.
The following table sets forth the carrying value of our
securities portfolio at the dates indicated.
December 31, 2020
September 30, 2020
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
(dollars in thousands)
Securities available for sale
U.S. Government and federal agencies
$
18,811
$
806
$
—
$
19,617
$
19,158
$
931
$
—
$
20,089
Agency mortgage-backed residential
71,582
2,777
(26
)
74,333
76,388
2,974
(13
)
79,349
Collateralized loan obligations
44,730
—
(1,578
)
43,152
44,730
—
(1,905
)
42,825
State and municipal
34,759
1,296
—
36,055
34,391
1,076
(32
)
35,435
Corporate bonds
31,635
472
(1,402
)
30,705
27,116
373
(1,643
)
25,846
Total available for sale
$
201,517
$
5,351
$
(3,006
)
$
203,862
$
201,783
$
5,354
$
(3,593
)
$
203,544
Provision and Allowance for Loan Losses – The allowance
for loan losses to total loans was 1.29% at December 31, 2020,
compared to 1.18% at September 30, 2020, and 0.90% at December 31,
2019. Loans acquired in the November 2019 branch transaction
totaled $85.9 million at December 31, 2020, and $100.3 million at
September 30, 2020. These loans were recorded at fair value as
determined by an independent third party. The remaining discount
associated with the fair value purchase accounting adjustments on
the acquired loans was $288,000 at December 31, 2020, compared to
$301,000 at September 30, 2020. Subsequent deterioration of these
acquired loans, if any, may require an adjustment through the
allowance for loan loss.
A provision of $900,000 and $4.4 million, or $0.09 and $0.46,
per common share after taxes, was recorded in the fourth quarter
and the year ended December 31, 2020, compared to no provision for
loan losses in the fourth quarter and the year ended December 31,
2019. The 2020 loan loss provisions were attributable to the net
loan charge-offs during the year, trends within the portfolio
during the year, and primarily to changes in the economic and
business environment attributable to COVID-19, the state and
national emergencies that have been declared, and the resultant
risk the pandemic poses for business disruptions for the Bank’s
borrowers which may lead to credit quality deterioration. Net loan
charge-offs were $333,000 for 2020, compared to net loan
charge-offs of $504,000 for 2019.
While the Company expects the U.S. Government’s economic
responses to the COVID-19 pandemic through monetary policy and
fiscal stimulus have provided meaningful support to the economy,
management deemed it prudent to increase the allowance for loan
losses through its qualitative environmental factors to account for
the pandemic risk.
COVID-19 Short-term Loan Concessions – The Bank has
elected to account for eligible loan modifications under Section
4013 of the CARES Act. To be an eligible loan under Section 4013 of
the CARES Act, a loan modification must be (1) related to the
coronavirus pandemic (“COVID-19”); (2) executed on a loan that was
not more than 30 days past due as of December 31, 2019; and (3)
executed between March 1, 2020, and the earlier of (A) 60 days
after the date of termination of the national emergency declared by
the President on March 13, 2020, concerning the COVID-19 outbreak
(the “national emergency”) or (B) January 1, 2022. Eligible loan
modifications are not required to be classified as TDRs and will
not be reported as past due provided they are performing in
accordance with the modified terms. Interest income will continue
to be recognized in accordance with GAAP unless the loan is placed
on nonaccrual status.
Short-term loan modifications totaled $15.3 million as of
December 31, 2020, compared to $64.9 million at September 30, 2020.
The following table details the status of the Bank’s short-term
loan modifications by loan category or type as of December 31,
2020:
First
Modification
Active
Subsequent
Modification
Active
Modification
Ended
Total
Modified
Loans
Total
Loan
Portfolio
% Modified
to Total
Portfolio
(in thousands)
Hotel, Motel, & Lodging
$
—
$
—
$
7,822
$
7,822
$
51,822
15.1
%
Retail Facility
—
4,355
—
4,355
67,785
6.4
Commercial Real Estate
—
346
—
346
160,433
0.2
1-4 Family Residential
—
—
—
—
188,955
—
Restaurant Full Service
—
—
—
—
15,094
—
Restaurant Limited Service
2,303
—
—
2,303
15,780
14.6
Multi-family
—
—
—
—
61,180
—
Construction and Development
—
—
—
—
48,396
—
Commercial & Industrial
—
—
—
—
208,244
—
Farmland
—
—
—
—
70,272
—
Consumer, Agriculture & Other
—
—
486
486
74,120
0.7
Total
$
2,303
$
4,701
$
8,308
$
15,312
$
962,081
1.6
%
First Modification Active includes loans within the terms of the
original modification agreement. Subsequent Modification Active
includes loans with a matured original modification that have been
further modified within the short-term parameters. Modification
Ended includes loans that have reached final deferred payment and
have yet to make a payment in accordance with the loan’s original
terms or have yet to request a subsequent modification. Loans that
returned to original contracted terms with a verified payment are
considered cured and are no longer included as modified loans in
the table above.
The table above includes one commercial real estate loan secured
by a retail facility totaling $4.4 million that remains subject to
and is performing in accordance with an interest only short-term
subsequent COVID-19 modification. The loan is graded substandard,
has been evaluated under ASC-310-10, and allocated a specific
reserve of $2.2 million as of December 31, 2020.
Subsequent to December 31, 2020, $8.3 million of the loans
categorized as “Modification Ended” in the table above have
received a verified payment and are now considered cured.
Non-performing Assets – Non-performing assets, which
include loans on nonaccrual, accruing troubled debt restructurings,
loans past due 90 days and still accruing, and other real estate
owned (“OREO”), decreased to $3.9 million, or 0.30%, of total
assets at December 31, 2020, compared with $4.2 million, or 0.32%,
of total assets at September 30, 2020, and $5.2 million, or 0.42%,
of total assets at December 31, 2019.
Non-interest Income and Expense – Non-interest income for
the fourth quarter of 2020 increased $123,000 to $1.8 million,
compared with $1.7 million for the fourth quarter of 2019. The
increase was primarily related to bank card interchange fees of
$171,000 as a result of the deposit accounts acquired in the branch
transaction on November 15, 2019. Non-interest expense decreased
$448,000, or 5.4%, to $7.9 million for the fourth quarter of 2020,
compared with $8.3 million for the fourth quarter of 2019. Deposit
account related expense increased by $159,000, occupancy expense
increased by $121,000, and franchise tax expense increased by
$130,000, which were all primarily the result of the branch
acquisition. Non-interest expense for 2019 also included $775,000
of acquisition expenses related to the branch purchase
transaction.
Non-interest income increased $926,000 to $6.8 million for the
year ended December 31, 2020, compared with $5.9 million for year
ended December 31, 2019. The increase was primarily related to bank
card interchange fees of $938,000 as a result of the deposit
accounts acquired in the branch purchase transaction. Non-interest
expense increased $2.1 million, or 7.1%, to $32.4 million for year
ended December 31, 2020, compared with $30.3 million for the year
ended December 31, 2019. The increase was primarily due to an
increase in salaries and employee benefits of $1.5 million and
$666,000 in deposit account related expense. While the Bank added
sales talent and customer facing associates during the latter half
of 2019 and branch staff in connection with the branch purchase
transaction, the Bank realized a reduction in FTEs from 248 at
March 31, 2020, to 219 as of December 31, 2020, through attrition
and workforce reduction. The increase in deposit account related
expense is the result of the deposit accounts acquired in the
branch purchase transaction.
Capital – The Company’s capital ratios were positively
impacted by the additional $8.0 million of subordinated notes
issued during the third quarter, as the subordinated notes meet the
requirements to qualify as Tier 2 capital.
About Limestone Bancorp, Inc.
Limestone Bancorp, Inc. (NASDAQ: LMST) is a Louisville,
Kentucky-based bank holding company which operates banking centers
in 14 counties through its wholly-owned subsidiary Limestone Bank.
The Bank’s markets include metropolitan Louisville in Jefferson
County and the surrounding counties of Bullitt and Henry and extend
south along the Interstate 65 corridor. The Bank serves south
central, southern, and western Kentucky from banking centers in
Barren, Butler, Daviess, Edmonson, Green, Hardin, Hart, Ohio, and
Warren counties. The Bank also has banking centers in Lexington,
Kentucky, the second largest city in the state, and Frankfort,
Kentucky, the state capital. Limestone Bank is a traditional
community bank with a wide range of personal and business banking
products and services.
Forward-Looking Statements
Statements in this press release relating to Limestone Bancorp’s
plans, objectives, expectations or future performance are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. The words “believe,”
“may,” “should,” “anticipate,” “estimate,” “expect,” “intend,”
“objective,” “possible,” “seek,” “plan,” “strive” or similar words,
or negatives of these words, identify forward-looking statements
that involve risks and uncertainties. Although the Company's
management believes the assumptions underlying the forward-looking
statements contained herein are reasonable, any of these
assumptions could be inaccurate. Therefore, there can be no
assurance the forward-looking statements included herein will prove
to be accurate. Factors that could cause actual results to differ
from those discussed in forward-looking statements include, but are
not limited to: the impact and duration of the COVID-19 pandemic
and national, state and local emergency conditions the pandemic has
produced; economic conditions both generally and more specifically
in the markets in which the Company and its subsidiaries operate;
competition for the Company's customers from other providers of
financial services; government legislation, regulation, fiscal, and
monetary policies, which change from time to time and over which
the Company has no control; changes in interest rates; material
unforeseen changes in liquidity, results of operations, or
financial condition of the Company's customers; and other risks
detailed in the Company's filings with the Securities and Exchange
Commission, all of which are difficult to predict and many of which
are beyond the control of the Company. See Risk Factors outlined in
the Company's Form 10-K for the year ended December 31, 2019, and
Form 10-Q for the nine months ended September 30, 2020.
Additional Information
Unaudited supplemental financial information for the fourth
quarter ending December 31, 2020, follows.
LIMESTONE BANCORP, INC. Unaudited
Financial Information (in thousands, except share and per share
data)
Three
Three
Twelve
Twelve
Months
Months
Months
Months
Ended
Ended
Ended
Ended
12/31/20
12/31/19
12/31/20
12/31/19
Income Statement Data
Interest income
$
12,606
$
12,537
$
50,753
$
49,584
Interest expense
1,820
3,676
10,152
14,234
Net interest income
10,786
8,861
40,601
35,350
Provision for loan losses
900
—
4,400
—
Net interest income after provision
9,886
8,861
36,201
35,350
Service charges on deposit accounts
594
681
2,268
2,381
Bank card interchange fees
882
711
3,376
2,438
Bank owned life insurance income
99
96
424
410
Gain (loss) on sales and calls of
securities, net
—
—
(5
)
(5
)
Other
202
166
781
694
Non-interest income
1,777
1,654
6,844
5,918
Salaries & employee benefits
4,167
4,201
17,751
16,233
Occupancy and equipment
1,011
890
4,001
3,522
Professional fees
233
171
937
769
Marketing expense
177
218
629
908
FDIC insurance
81
—
229
211
Data processing expense
381
316
1,502
1,259
State franchise and deposit tax
395
265
1,475
1,210
Deposit account related expense
492
333
1,890
1,224
Other real estate owned expense
5
35
63
368
Litigation and loan collection expense
22
77
200
189
Communications expense
190
200
856
772
Insurance expense
112
109
428
444
Postage and delivery
151
140
627
544
Acquisition costs
—
775
—
775
Other
449
584
1,828
1,842
Non-interest expense
7,866
8,314
32,416
30,270
Income before income taxes
3,797
2,201
10,629
10,998
Income tax expense
680
437
1,624
480
Net income
$
3,117
$
1,764
$
9,005
$
10,518
Weighted average shares – Basic
7,499,323
7,471,680
7,492,190
7,468,215
Weighted average shares – Diluted
7,499,323
7,471,680
7,492,190
7,468,215
Basic earnings per common share
$
0.42
$
0.24
$
1.20
$
1.41
Diluted earnings per common share
$
0.42
$
0.24
$
1.20
$
1.41
Cash dividends declared per common
share
$
0.00
$
0.00
$
0.00
$
0.00
LIMESTONE BANCORP, INC. Unaudited
Financial Information (in thousands, except share and per share
data)
Three
Three
Three
Three
Three
Months
Months
Months
Months
Months
Ended
Ended
Ended
Ended
Ended
12/31/20
9/30/20
6/30/20
3/31/20
12/31/19
Income Statement Data
Interest income
$
12,606
$
12,094
$
12,786
$
13,267
$
12,537
Interest expense
1,820
2,151
2,676
3,505
3,676
Net interest income
10,786
9,943
10,110
9,762
8,861
Provision for loan losses
900
1,350
1,100
1,050
—
Net interest income after provision
9,886
8,593
9,010
8,712
8,861
Service charges on deposit accounts
594
565
441
668
681
Bank card interchange fees
882
881
863
750
711
Bank owned life insurance income
99
113
116
96
96
Gain (loss) on sales and calls of
securities, net
—
—
(5
)
—
—
Other
202
183
186
210
166
Non-interest income
1,777
1,742
1,601
1,724
1,654
Salaries & employee benefits
4,167
4,413
4,633
4,538
4,201
Occupancy and equipment
1,011
1,008
983
999
890
Professional fees
233
261
235
208
171
Marketing expense
177
134
104
214
218
FDIC insurance
81
81
67
—
—
Data processing expense
381
382
380
359
316
State franchise and deposit tax
395
360
360
360
265
Deposit account related expense
492
487
460
451
333
Other real estate owned expense
5
20
22
16
35
Litigation and loan collection expense
22
54
59
65
77
Communications expense
190
201
247
218
200
Insurance expense
112
102
111
103
109
Postage and delivery
151
156
152
168
140
Acquisition costs
—
—
—
—
775
Other
449
420
423
536
584
Non-interest expense
7,866
8,079
8,236
8,235
8,314
Income before income taxes
3,797
2,256
2,375
2,201
2,201
Income tax expense
680
190
393
361
437
Net income
$
3,117
$
2,066
$
1,982
$
1,840
$
1,764
Weighted average shares – Basic
7,499,323
7,499,223
7,488,173
7,481,884
7,471,680
Weighted average shares – Diluted
7,499,323
7,499,223
7,488,173
7,481,884
7,471,680
Basic earnings per common share
$
0.42
$
0.28
$
0.26
$
0.25
$
0.24
Diluted earnings per common share
$
0.42
$
0.28
$
0.26
$
0.25
$
0.24
Cash dividends declared per common
share
$
0.00
$
0.00
$
0.00
$
0.00
$
0.00
LIMESTONE BANCORP, INC. Unaudited
Financial Information (in thousands, except share and per share
data)
As of
12/31/20
9/30/20
6/30/20
3/31/20
12/31/19
Assets
Loans
$
962,081
$
974,468
$
975,759
$
961,561
$
926,271
Allowance for loan losses
(12,443
)
(11,481
)
(10,228
)
(9,150
)
(8,376
)
Net loans
949,638
962,987
965,531
952,411
917,895
Securities available for sale
203,862
203,544
202,596
198,657
209,000
Federal funds sold & interest-bearing
deposits
56,863
24,358
39,027
23,639
21,962
Cash and due from financial
institutions
10,830
7,593
9,990
9,509
8,241
Premises and equipment
18,533
18,572
19,000
19,282
19,658
Premises held for sale
1,060
1,110
1,149
1,185
900
Bank owned life insurance
23,441
23,347
16,238
16,128
16,037
FHLB Stock
5,887
5,962
6,142
6,837
6,237
Other real estate owned
1,765
1,625
1,625
3,225
3,225
Deferred taxes, net
25,714
26,540
27,054
28,208
27,765
Goodwill
6,252
6,252
6,252
6,252
6,252
Intangible assets
2,244
2,308
2,372
2,436
2,500
Accrued interest receivable and other
assets
6,213
7,426
7,532
6,441
6,107
Total Assets
$
1,312,302
$
1,291,624
$
1,304,508
$
1,274,210
$
1,245,779
Liabilities and Equity
Certificates of deposit
$
367,552
$
398,429
$
446,370
$
467,535
$
476,534
Interest checking
190,625
168,735
167,814
157,621
146,038
Money market
175,785
174,588
166,376
154,851
160,837
Savings
142,623
134,962
119,327
92,235
56,015
Total interest-bearing deposits
876,585
876,714
899,887
872,242
839,424
Demand deposits
243,022
217,675
224,901
185,658
187,551
Total deposits
1,119,607
1,094,389
1,124,788
1,057,900
1,026,975
FHLB advances
20,623
30,634
20,644
61,349
61,389
Junior subordinated debentures
21,000
21,000
21,000
21,000
21,000
Subordinated capital note
25,000
25,000
17,000
17,000
17,000
Senior debt
—
—
5,000
5,000
5,000
Accrued interest payable and other
liabilities
10,048
8,315
7,020
7,450
8,665
Total liabilities
1,196,278
1,179,338
1,195,452
1,169,699
1,140,029
Total stockholders’ equity
116,024
112,286
109,056
104,511
105,750
Total Liabilities and Stockholders’
Equity
$
1,312,302
$
1,291,624
$
1,304,508
$
1,274,210
$
1,245,779
Ending shares outstanding
7,498,865
7,499,183
7,485,872
7,489,305
7,471,975
Book value per common share
$
15.47
$
14.97
$
14.57
$
13.95
$
14.15
Tangible book value per common
share
14.34
13.83
13.42
12.79
12.98
LIMESTONE BANCORP, INC. Unaudited
Financial Information (in thousands, except share and per share
data)
As of
12/31/20
9/30/20
6/30/20
3/31/20
12/31/19
Average Balance Sheet Data
Assets
$
1,304,715
$
1,295,814
$
1,305,923
$
1,273,167
$
1,167,179
Loans
965,339
963,486
978,316
949,204
846,235
Earning assets
1,220,043
1,213,039
1,222,760
1,188,314
1,090,752
Deposits
1,115,985
1,111,865
1,116,420
1,052,944
982,991
Long-term debt and advances
67,280
65,769
75,259
105,407
73,695
Interest bearing liabilities
951,620
955,661
971,770
971,554
882,473
Stockholders’ equity
113,868
110,930
107,348
107,632
105,295
Quarterly Performance Ratios
Return on average assets
0.95
%
0.63
%
0.61
%
0.58
%
0.60
%
Return on average equity
10.89
7.41
7.43
6.88
6.65
Yield on average earning assets (tax
equivalent)
4.12
3.98
4.21
4.50
4.57
Cost of interest-bearing liabilities
0.76
0.90
1.11
1.45
1.65
Net interest margin (tax equivalent)
3.53
3.27
3.33
3.31
3.23
Efficiency ratio
62.61
69.14
70.30
71.70
71.70
Non-interest expense to average assets
2.40
2.48
2.54
2.60
2.83
Asset Quality Data
Nonaccrual loans
$
1,676
$
2,038
$
1,410
$
1,500
$
1,528
Troubled debt restructurings on
accrual
480
489
462
466
475
Loan 90 days or more past due still on
accrual
—
—
—
—
—
Total non-performing loans
2,156
2,527
1,872
1,966
2,003
Real estate acquired through
foreclosures
1,765
1,625
1,625
3,225
3,225
Other repossessed assets
—
—
—
—
—
Total non-performing assets
$
3,921
$
4,152
$
3,497
$
5,191
$
5,228
Non-performing loans to total loans
0.22
%
0.26
%
0.19
%
0.20
%
0.22
%
Non-performing assets to total assets
0.30
0.32
0.27
0.41
0.42
Allowance for loan losses to
non-performing loans
577.13
454.33
546.37
465.41
418.17
Allowance for loan losses to total
loans
1.29
%
1.18
%
1.05
%
0.95
%
0.90
%
Loan Charge-off Data
Loans charged off
$
(124
)
$
(150
)
$
(193
)
$
(335
)
$
(639
)
Recoveries
186
53
171
59
111
Net recoveries (charge-offs)
$
62
$
(97
)
$
(22
)
$
(276
)
$
(528
)
Loans by Risk Category
Pass
$
926,025
$
923,895
$
925,558
$
915,985
$
888,707
Watch
18,879
27,782
43,014
38,464
27,522
Special Mention
—
364
—
—
—
Substandard
17,177
22,427
7,187
7,112
10,042
Doubtful
—
—
—
—
—
Total
$
962,081
$
974,468
$
975,759
$
961,561
$
926,271
Loans by Past Due Status
Past due loans:
30 – 59 days
$
1,537
$
482
$
458
$
1,158
$
1,747
60 – 89 days
372
265
197
248
670
90 days or more
—
—
—
—
—
Nonaccrual loans
1,676
2,038
1,410
1,500
1,528
Total past due and nonaccrual
loans
$
3,585
$
2,785
$
2,065
$
2,906
$
3,945
LIMESTONE BANCORP, INC. Unaudited
Financial Information (in thousands, except share and per share
data)
As of
12/31/20
9/30/20
6/30/20
3/31/20
12/31/19
Risk-based Capital Ratios -
Company
Tier I leverage ratio
8.24
%
8.17
%
8.05
%
8.29
%
8.30
%
Common equity Tier I risk-based capital
ratio
8.72
8.54
8.45
8.26
8.32
Tier I risk-based capital ratio
9.67
9.77
9.93
9.86
9.32
Total risk-based capital ratio
13.14
13.22
12.57
12.37
11.85
Risk-based Capital Ratios – Limestone
Bank
Tier I leverage ratio
10.21
%
9.90
%
9.54
%
9.67
%
9.99
%
Common equity Tier I risk-based capital
ratio
12.05
11.88
11.79
11.50
11.25
Tier I risk-based capital ratio
12.05
11.88
11.79
11.50
11.25
Total risk-based capital ratio
13.20
12.97
12.78
12.38
12.08
FTE employees, end of period
219
224
228
248
244
Non-GAAP Financial Measures Reconciliation
Tangible book value per common share is a non-GAAP financial
measure derived from GAAP based amounts. Tangible book value is
calculated by excluding the balance of intangible assets from
common stockholders’ equity. Tangible book value per common share
is calculated by dividing tangible common equity by common shares
outstanding, as compared to book value per common share, which is
calculated by dividing common stockholders’ equity by common shares
outstanding. Management believes this is consistent with bank
regulatory agency treatment, which excludes tangible assets from
the calculation of risk-based capital.
The efficiency ratio is a non-GAAP measure of expense control
relative to revenue from net interest income and fee income. The
efficiency ratio is calculated by dividing total non-interest
expenses as determined under GAAP by net interest income and total
non-interest income, but excluding from the calculation net gains
on the sale of securities and expenses disclosed from time to time
as non-recurring in nature. Management believes this provides a
reasonable measure of primary banking expenses relative to primary
banking revenue.
As of
12/31/20
9/30/20
6/30/20
3/31/20
12/31/19
Tangible Book Value Per Share
(in thousands, except share and
per share data)
Common stockholders’ equity
$
116,024
$
112,286
$
109,056
$
104,511
$
105,750
Less: Goodwill
6,252
6,252
6,252
6,252
6,252
Less: Intangible assets
2,244
2,308
2,372
2,436
2,500
Tangible common equity
107,528
103,726
100,432
95,823
96,998
Shares outstanding
7,498,865
7,499,183
7,485,872
7,489,305
7,471,975
Tangible book value per common share
$
14.34
$
13.83
$
13.42
$
12.79
$
12.98
Book value per common share
15.47
14.97
14.57
13.95
14.15
Three Months Ended
12/31/20
9/30/20
6/30/20
3/31/20
12/31/19
Efficiency Ratio
(in thousands)
Net interest income
$
10,786
$
9,943
$
10,110
$
9,762
$
8,861
Non-interest income
1,777
1,742
1,601
1,724
1,654
Less: Net gain (loss) on securities
—
—
(5
)
—
—
Revenue used for efficiency ratio
12,563
11,685
11,716
11,486
10,515
Non-interest expense
7,866
8,079
8,236
8,235
8,314
Less: Acquisition costs
—
—
—
—
775
Expenses used for efficiency ratio
7,866
8,079
8,236
8,235
7,539
Efficiency ratio
62.61
%
69.14
%
70.30
%
71.70
%
71.70
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210120005493/en/
John T. Taylor Chief Executive Officer (502) 499-4800
Limestone Bancorp (NASDAQ:LMST)
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