Southern States Bancshares, Inc. (NASDAQ: SSBK) (“Southern States”
or the “Company”), the holding company for Southern States Bank, an
Alabama state-chartered commercial bank (the “Bank”), today
reported net income of $8.2 million, or $0.90 diluted earnings per
share, for the second quarter of 2024. This compares to net income
of $8.1 million, or $0.90 diluted earnings per share, for the first
quarter of 2024, and net income of $8.8 million, or $0.98 diluted
earnings per share, for the second quarter of 2023. The Company
reported core net income of $9.1 million, or $1.00 diluted core
earnings per share, for the second quarter of 2024. This compares
to core net income of $8.1 million, or $0.90 diluted core earnings
per share, for the first quarter of 2024, and core net income of
$7.1 million, or $0.79 diluted core earnings per share, for the
second quarter of 2023 (see “Reconciliation of Non-GAAP Financial
Measures”).
|
CEO Commentary |
|
|
|
|
|
|
|
Mark Chambers, Chief Executive Officer and President of Southern
States said, “We generated consistent growth in the second quarter
with continued progress in business development adding high-quality
loans and core deposits. We are seeing well-balanced loan growth
across all our major areas of lending. Our total loan growth of
10.3% (annualized from the prior quarter) and total deposit growth
of 12.6% reflected our ability to perform well through economic
cycles.” |
|
“We continue to be a high-performing bank with strong profitability
metrics including ROATCE of 15.79%. Effective expense management
resulted in our second highest core efficiency ratio of
44.75%.” |
|
“Consistent with our prudent approach to risk management, we have a
strong and durable foundation with high levels of capital reserves
and strong credit quality. The addition of CBB Bancorp, which we
expect to close on August 1, will strengthen our platform, drive
loan and deposit growth, and expand our franchise in growing and
attractive Georgia markets. Our two organizations are culturally
aligned with a ‘Customer First’ mindset and we are excited to
realize all the synergies that will benefit our customers,
employees, shareholders, and the communities we serve.” |
|
Net Interest Income and Net Interest Margin |
| |
Three Months Ended |
|
% Change June 30, 2024
vs. |
|
June 30,2024 |
|
March 31,2024 |
|
June 30,2023 |
|
March 31,2024 |
|
June 30,2023 |
| |
(Dollars in thousands) |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Average interest-earning assets |
$ |
2,440,425 |
|
|
$ |
2,336,369 |
|
|
$ |
2,091,998 |
|
|
4.5 |
% |
|
16.7 |
% |
| Net interest income |
$ |
21,579 |
|
|
$ |
20,839 |
|
|
$ |
19,432 |
|
|
3.6 |
% |
|
11.0 |
% |
| Net interest margin |
|
3.56 |
% |
|
|
3.59 |
% |
|
|
3.73 |
% |
|
(3) |
bps |
|
(17) |
bps |
|
|
|
|
|
|
|
|
|
|
|
Net interest income for the second quarter of
2024 was $21.6 million, an increase of 3.6% from $20.8 million in
the first quarter of 2024. The increase was primarily driven by a
higher yield on interest-earning assets resulting from growth at
higher interest rates, which more than offset a higher cost of
interest-bearing deposits due to both higher interest rates and
competition.
Relative to the second quarter of 2023, net
interest income increased $2.1 million, or 11.0%. The increase was
mainly driven by growth, which offset the slight decline in net
interest margin.
Net interest margin for the second quarter of
2024 was 3.56%, compared to 3.59% for the first quarter of 2024.
The decrease was primarily due to an increase in the cost of
interest-bearing deposits, which was greater than the increase in
the yield on interest-earning assets.
Relative to the second quarter of 2023, net
interest margin decreased from 3.73%. The decrease was primarily
the result of the increase in interest rates, which accelerated the
cost of interest-bearing liabilities at a greater pace than the
yield received on interest-earning assets. A shift from
noninterest-bearing deposits into interest-bearing deposits also
had a negative impact on net interest margin.
| |
Three Months Ended |
|
% Change June 30, 2024
vs. |
|
June 30,2024 |
|
March 31,2024 |
|
June 30,2023 |
|
March 31,2024 |
|
June 30,2023 |
| |
(Dollars in thousands) |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
$ |
462 |
|
$ |
463 |
|
|
$ |
456 |
|
|
(0.2 |
)% |
|
1.3 |
% |
| Swap fees |
|
4 |
|
|
15 |
|
|
|
173 |
|
|
(73.3 |
)% |
|
(97.7 |
)% |
| SBA/USDA fees |
|
58 |
|
|
64 |
|
|
|
66 |
|
|
(9.4 |
)% |
|
(12.1 |
)% |
| Mortgage origination fees |
|
92 |
|
|
96 |
|
|
|
188 |
|
|
(4.2 |
)% |
|
(51.1 |
)% |
| Net gain (loss) on
securities |
|
20 |
|
|
(12 |
) |
|
|
(45 |
) |
|
(266.7 |
)% |
|
(144.4 |
)% |
| Employee retention credit and
related revenue (“ERC”) |
|
— |
|
|
— |
|
|
|
5,100 |
|
|
N/A |
|
|
N/A |
|
| Other operating income |
|
732 |
|
|
642 |
|
|
|
924 |
|
|
14.0 |
% |
|
(20.8 |
)% |
|
Total noninterest income |
$ |
1,368 |
|
$ |
1,268 |
|
|
$ |
6,862 |
|
|
7.9 |
% |
|
(80.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Noninterest income for the second quarter of
2024 was $1.4 million, an increase of 7.9% from $1.3 million in the
first quarter of 2024. The increase primarily reflected the
purchase of additional bank owned life insurance (“BOLI”) that
resulted in increased BOLI income, a realized net gain on
securities during the second quarter of 2024 compared to a net loss
on securities during the first quarter of 2024, and an increase in
interchange fees.
Relative to the second quarter of 2023,
noninterest income decreased 80.1% from $6.9 million. In the second
quarter of 2023, the Company received $5.1 million in ERC from the
Internal Revenue Service (“IRS”), which was subsequently returned
in the third quarter of 2023 as a result of revised IRS eligibility
guidelines. Other operating income decreased as a result of the
Company receiving less nonrecurring income from a third party
during the second quarter of 2024. In addition, there was a decline
in swap fees during the second quarter of 2024, substantially as a
result of the Company not participating in any swap
transactions.
| |
Three Months Ended |
|
% Change June 30, 2024
vs. |
|
June 30,2024 |
|
March 31,2024 |
|
June 30,2023 |
|
March 31,2024 |
|
June 30,2023 |
| |
(Dollars in thousands) |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
$ |
6,112 |
|
$ |
6,231 |
|
$ |
7,863 |
|
(1.9 |
)% |
|
(22.3 |
)% |
| Equipment and occupancy
expenses |
|
667 |
|
|
689 |
|
|
694 |
|
(3.2 |
)% |
|
(3.9 |
)% |
| Data processing fees |
|
686 |
|
|
643 |
|
|
646 |
|
6.7 |
% |
|
6.2 |
% |
| Regulatory assessments |
|
375 |
|
|
360 |
|
|
180 |
|
4.2 |
% |
|
108.3 |
% |
| Professional fees related to
ERC |
|
— |
|
|
— |
|
|
1,243 |
|
N/A |
|
|
N/A |
|
| Other operating expenses |
|
3,571 |
|
|
2,452 |
|
|
2,806 |
|
45.6 |
% |
|
27.3 |
% |
|
Total noninterest expenses |
$ |
11,411 |
|
$ |
10,375 |
|
$ |
13,432 |
|
10.0 |
% |
|
(15.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense for the second quarter of
2024 was $11.4 million, an increase of 10.0% from $10.4 million in
the first quarter of 2024. The second quarter of 2024 included a
$1.2 million wire fraud loss. This was not a systematic issue with
systems, only a procedural incident. The increase was partially
offset by a reduction in salaries and benefits during the second
quarter of 2024, substantially due to higher payroll taxes and 401k
matching brought about by incentive expense paid during the first
quarter of 2024.
Relative to the second quarter of 2023,
noninterest expense decreased 15.0% from $13.4 million. The
decrease was primarily attributable to a decrease in salaries and
benefits, substantially as a result of one-time retirement-related
expenses of $1.6 million paid to our former CEO in May 2023 and
professional fees paid to a third party during the second quarter
of 2023 related to ERC, which were subsequently refunded during the
third quarter of 2023. These decreases were significantly offset by
the wire fraud loss the Company incurred during the second quarter
of 2024. As previously mentioned, this was not a systematic issue
with systems, only a procedural incident.
| |
Three Months Ended |
|
% Change June 30, 2024
vs. |
|
June 30,2024 |
|
March 31,2024 |
|
June 30,2023 |
|
March 31,2024 |
|
June 30,2023 |
|
(Dollars in thousands) |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Gross loans |
$ |
2,021,877 |
|
|
$ |
1,971,396 |
|
|
$ |
1,722,278 |
|
|
2.6 |
% |
|
17.4 |
% |
| Unearned income |
|
(6,443 |
) |
|
|
(6,247 |
) |
|
|
(5,766 |
) |
|
3.1 |
% |
|
11.7 |
% |
| Loans, net of unearned income
(“Loans”) |
|
2,015,434 |
|
|
|
1,965,149 |
|
|
|
1,716,512 |
|
|
2.6 |
% |
|
17.4 |
% |
| Average loans, net of unearned
(“Average loans”) |
$ |
1,987,533 |
|
|
$ |
1,916,288 |
|
|
$ |
1,676,816 |
|
|
3.7 |
% |
|
18.5 |
% |
| |
|
|
|
|
|
|
|
|
|
| Nonperforming loans
(“NPL”) |
$ |
3,784 |
|
|
$ |
3,446 |
|
|
$ |
1,010 |
|
|
9.8 |
% |
|
274.7 |
% |
| Provision for credit
losses |
$ |
1,067 |
|
|
$ |
1,236 |
|
|
$ |
1,557 |
|
|
(13.7 |
)% |
|
(31.5 |
)% |
| Allowance for credit losses
(“ACL”) |
$ |
25,828 |
|
|
$ |
25,144 |
|
|
$ |
21,385 |
|
|
2.7 |
% |
|
20.8 |
% |
| Net charge-offs |
$ |
383 |
|
|
$ |
470 |
|
|
$ |
27 |
|
|
(18.5 |
)% |
|
1318.5 |
% |
| NPL to gross loans |
|
0.19 |
% |
|
|
0.17 |
% |
|
|
0.06 |
% |
|
|
|
|
| Net charge-offs to average
loans(1) |
|
0.08 |
% |
|
|
0.10 |
% |
|
|
0.01 |
% |
|
|
|
|
| ACL to loans |
|
1.28 |
% |
|
|
1.28 |
% |
|
|
1.25 |
% |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| (1) Ratio is annualized. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned income, were $2.0 billion
at June 30, 2024, up $50.3 million from March 31, 2024
and up $298.9 million from June 30, 2023. The linked-quarter
and year-over-year increases in loans were primarily attributable
to new business growth across our footprint.
Nonperforming loans totaled $3.8 million, or
0.19% of gross loans, at June 30, 2024, compared with $3.4
million, or 0.17% of gross loans, at March 31, 2024, and $1.0
million, or 0.06% of gross loans, at June 30, 2023. The
$338,000 net increase in nonperforming loans in the second quarter
of 2024 was primarily attributable to a commercial and industrial
loan that was added to nonaccrual status and partially offset by a
commercial and industrial loan that was charged-off. The $2.8
million net increase in nonperforming loans from June 30,
2023, was primarily attributable to a significant commercial real
estate loan and two commercial and industrial loans that were added
to nonaccrual status.
The Company recorded a provision for credit
losses of $1.1 million for the second quarter of 2024, compared to
$1.2 million for the first quarter of 2024. Provision in the second
quarter of 2024 was based primarily on loan growth along with
qualitative economic factors and individually analyzed loans.
Net charge-offs for the second quarter of 2024
were $383,000, or 0.08% of average loans on an annualized basis,
compared to net charge-offs of $470,000, or 0.10% of average loans
on an annualized basis, for the first quarter of 2024, and net
charge-offs of $27,000, or 0.01% of average loans on an annualized
basis, for the second quarter of 2023. The charge-offs recorded
during the the first and second quarters of 2024 were substantially
related to the charge-off of approximately 70% of a purchased pool
of consumer loans, as the borrower has filed for bankruptcy. This
was a conservative approach based on uncertainty.
The Company’s allowance for credit losses was
1.28% of total loans and 682.56% of nonperforming loans at
June 30, 2024, compared with 1.28% of total loans and 729.66%
of nonperforming loans at March 31, 2024. Allowance for credit
losses on unfunded commitments was $1.2 million at June 30,
2024.
| |
Three Months Ended |
|
% Change June 30, 2024
vs. |
|
June 30,2024 |
|
March 31,2024 |
|
June 30,2023 |
|
March 31,2024 |
|
June 30,2023 |
| |
(Dollars in thousands) |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
416,068 |
|
|
$ |
416,704 |
|
|
$ |
449,433 |
|
|
(0.2 |
)% |
|
(7.4 |
)% |
| Interest-bearing deposits |
|
1,759,610 |
|
|
|
1,693,094 |
|
|
|
1,474,478 |
|
|
3.9 |
% |
|
19.3 |
% |
|
Total deposits |
$ |
2,175,678 |
|
|
$ |
2,109,798 |
|
|
$ |
1,923,911 |
|
|
3.1 |
% |
|
13.1 |
% |
| |
|
|
|
|
|
|
|
|
|
| Uninsured deposits |
$ |
645,283 |
|
|
$ |
610,122 |
|
|
$ |
553,084 |
|
|
5.8 |
% |
|
16.7 |
% |
| Uninsured deposits to total
deposits |
|
29.66 |
% |
|
|
28.92 |
% |
|
|
28.75 |
% |
|
|
|
|
| Noninterest deposits to total
deposits |
|
19.12 |
% |
|
|
19.75 |
% |
|
|
23.36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits were $2.2 billion at
June 30, 2024, up from $2.1 billion at March 31, 2024 and
$1.9 billion at June 30, 2023. The $65.9 million increase in
total deposits in the second quarter was primarily due to an
increase of $66.5 million in interest-bearing deposits, which
included a $2.7 million decrease in brokered deposits, partially
offset by a $636,000 decrease in noninterest-bearing deposits.
Total brokered deposits were $288.3 million at June 30, 2024,
compared to 291.0 million at March 31, 2024.
| |
June 30,2024 |
|
March 31,2024 |
|
June 30,2023 |
|
Company |
|
Bank |
|
Company |
|
Bank |
|
Company |
|
Bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital ratio to average assets |
8.72 |
% |
|
11.52 |
% |
|
8.79 |
% |
|
11.67 |
% |
|
8.70 |
% |
|
11.82 |
% |
| Risk-based capital
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 (“CET1”) capital ratio |
9.54 |
% |
|
12.61 |
% |
|
9.39 |
% |
|
12.47 |
% |
|
9.11 |
% |
|
12.37 |
% |
|
Tier 1 capital ratio |
9.54 |
% |
|
12.61 |
% |
|
9.39 |
% |
|
12.47 |
% |
|
9.11 |
% |
|
12.37 |
% |
|
Total capital ratio |
14.50 |
% |
|
13.77 |
% |
|
14.42 |
% |
|
13.63 |
% |
|
14.42 |
% |
|
13.47 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2024, total stockholders’
equity was $230.6 million, up from $222.9 million at March 31,
2024. The increase of $7.7 million was substantially due to
earnings growth.
|
About Southern States Bancshares, Inc. |
Headquartered in Anniston, Alabama, Southern
States Bancshares, Inc. is a bank holding company that operates
primarily through its wholly-owned subsidiary, Southern States
Bank. The Bank is a full service community banking institution,
which offers an array of deposit, loan and other banking-related
products and services to businesses and individuals in its
communities. The Bank operates 13 branches in Alabama and Georgia
and two loan production offices in Atlanta.
|
Forward-Looking Statements |
This press release contains forward-looking
statements within the meaning of the federal securities laws, which
reflect our current expectations and beliefs with respect to, among
other things, future events and our financial performance. These
forward-looking statements are not historical facts, and are based
on current expectations, estimates and projections about our
industry, management’s beliefs and certain assumptions made by
management, many of which, by their nature, are inherently
uncertain and beyond our control. This may be especially true given
recent events and trends in the banking industry and the
inflationary environment. Although we believe that the expectations
reflected in such forward-looking statements are reasonable as of
the dates made, we cannot give any assurance that such expectations
will prove correct and actual results may prove to be materially
different from the results expressed or implied by the
forward-looking statements. Important factors that could cause
actual results to differ materially from those in the
forward-looking statements are set forth in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2023 under the
section entitled “Cautionary Note Regarding Forward-Looking
Statements” and “Risk Factors”. Accordingly, we caution you that
any such forward-looking statements are not guarantees of future
performance and are subject to risks, assumptions and uncertainties
that are difficult to predict.
These statements are often, but not always, made
through the use of words or phrases such as “may,” “can,” “should,”
“could,” “to be,” “predict,” “potential,” “believe,” “will likely
result,” “expect,” “continue,” “will,” “likely,” “anticipate,”
“seek,” “estimate,” “intend,” “plan,” “target,” “project,” “would”
and “outlook,” or the negative version of those words or other
similar words or phrases of a future or forward-looking nature.
Forward-looking statements appear in a number of places in this
press release and may include statements about our acquisition of
Century Bank of Georgia, business strategy and prospects for
growth, operations, ability to pay dividends, competition,
regulation and general economic conditions.
|
Contact Information |
|
|
|
|
|
|
|
Lynn Joyce |
|
|
|
Margaret Boyce |
| (205)
820-8065 |
|
|
|
(310)
622-8247 |
|
ljoyce@ssbank.bank |
|
|
|
ssbankir@finprofiles.com |
|
SELECT FINANCIAL DATA |
|
(Dollars in thousands, except share and per share amounts) |
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Six Months Ended |
|
June 30,2024 |
|
March 31,2024 |
|
June 30,2023 |
|
June 30,2024 |
|
June 30,2023 |
|
|
|
|
|
|
|
|
|
|
| Results of
Operations |
|
|
|
|
|
|
|
|
|
|
Interest income |
$ |
41,007 |
|
|
$ |
38,736 |
|
|
$ |
32,185 |
|
|
$ |
79,743 |
|
|
$ |
60,884 |
|
| Interest expense |
|
19,428 |
|
|
|
17,897 |
|
|
|
12,753 |
|
|
|
37,325 |
|
|
|
21,906 |
|
| Net interest income |
|
21,579 |
|
|
|
20,839 |
|
|
|
19,432 |
|
|
|
42,418 |
|
|
|
38,978 |
|
| Provision for credit
losses |
|
1,067 |
|
|
|
1,236 |
|
|
|
1,557 |
|
|
|
2,303 |
|
|
|
2,738 |
|
| Net interest income after
provision |
|
20,512 |
|
|
|
19,603 |
|
|
|
17,875 |
|
|
|
40,115 |
|
|
|
36,240 |
|
| Noninterest income |
|
1,368 |
|
|
|
1,268 |
|
|
|
6,862 |
|
|
|
2,636 |
|
|
|
8,648 |
|
| Noninterest expense |
|
11,411 |
|
|
|
10,375 |
|
|
|
13,432 |
|
|
|
21,786 |
|
|
|
23,590 |
|
| Income tax expense |
|
2,271 |
|
|
|
2,377 |
|
|
|
2,549 |
|
|
|
4,648 |
|
|
|
4,871 |
|
| Net income |
$ |
8,198 |
|
|
$ |
8,119 |
|
|
$ |
8,756 |
|
|
$ |
16,317 |
|
|
$ |
16,427 |
|
| Core net income(1) |
$ |
9,058 |
|
|
$ |
8,128 |
|
|
$ |
7,058 |
|
|
$ |
17,186 |
|
|
$ |
14,339 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and Per Share Data |
|
|
|
|
|
|
|
|
|
| Shares issued and
outstanding |
|
8,908,130 |
|
|
|
8,894,794 |
|
|
|
8,738,814 |
|
|
|
8,908,130 |
|
|
|
8,738,814 |
|
| Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
8,957,608 |
|
|
|
8,913,477 |
|
|
|
8,763,635 |
|
|
|
8,935,542 |
|
|
|
8,763,046 |
|
|
Diluted |
|
9,070,568 |
|
|
|
9,043,122 |
|
|
|
8,950,847 |
|
|
|
9,062,548 |
|
|
|
9,001,600 |
|
| Earnings per share: |
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.91 |
|
|
$ |
0.91 |
|
|
$ |
1.00 |
|
|
$ |
1.82 |
|
|
$ |
1.87 |
|
|
Diluted |
|
0.90 |
|
|
|
0.90 |
|
|
|
0.98 |
|
|
|
1.80 |
|
|
|
1.82 |
|
|
Core - diluted(1) |
|
1.00 |
|
|
|
0.90 |
|
|
|
0.79 |
|
|
|
1.90 |
|
|
|
1.59 |
|
| Book value per share |
|
25.88 |
|
|
|
25.06 |
|
|
|
22.57 |
|
|
|
25.88 |
|
|
|
22.57 |
|
| Tangible book value per
share(1) |
|
23.91 |
|
|
|
23.07 |
|
|
|
20.52 |
|
|
|
23.91 |
|
|
|
20.52 |
|
| Cash dividends per common
share |
|
0.09 |
|
|
|
0.09 |
|
|
|
0.09 |
|
|
|
0.18 |
|
|
|
0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance and Financial Ratios |
|
|
|
|
|
|
|
|
|
| ROAA |
|
1.29 |
% |
|
|
1.33 |
% |
|
|
1.60 |
% |
|
|
1.31 |
% |
|
|
1.56 |
% |
| ROAE |
|
14.55 |
% |
|
|
14.87 |
% |
|
|
18.15 |
% |
|
|
14.71 |
% |
|
|
17.43 |
% |
| Core ROAA(1) |
|
1.43 |
% |
|
|
1.34 |
% |
|
|
1.29 |
% |
|
|
1.38 |
% |
|
|
1.36 |
% |
| ROATCE(1) |
|
15.79 |
% |
|
|
16.17 |
% |
|
|
20.01 |
% |
|
|
15.98 |
% |
|
|
19.25 |
% |
| Core ROATCE(1) |
|
17.44 |
% |
|
|
16.19 |
% |
|
|
16.13 |
% |
|
|
16.83 |
% |
|
|
16.80 |
% |
| NIM |
|
3.56 |
% |
|
|
3.59 |
% |
|
|
3.73 |
% |
|
|
3.57 |
% |
|
|
3.89 |
% |
| NIM - FTE(1) |
|
3.57 |
% |
|
|
3.60 |
% |
|
|
3.74 |
% |
|
|
3.58 |
% |
|
|
3.90 |
% |
| Net interest spread |
|
2.59 |
% |
|
|
2.63 |
% |
|
|
2.86 |
% |
|
|
2.60 |
% |
|
|
3.08 |
% |
| Yield on loans |
|
7.17 |
% |
|
|
7.06 |
% |
|
|
6.61 |
% |
|
|
7.11 |
% |
|
|
6.50 |
% |
| Yield on interest-earning
assets |
|
6.76 |
% |
|
|
6.67 |
% |
|
|
6.17 |
% |
|
|
6.71 |
% |
|
|
6.08 |
% |
| Cost of interest-bearing
liabilities |
|
4.17 |
% |
|
|
4.04 |
% |
|
|
3.31 |
% |
|
|
4.11 |
% |
|
|
3.00 |
% |
| Cost of funds(2) |
|
3.41 |
% |
|
|
3.27 |
% |
|
|
2.58 |
% |
|
|
3.34 |
% |
|
|
2.31 |
% |
| Cost of interest-bearing
deposits |
|
4.07 |
% |
|
|
3.92 |
% |
|
|
3.12 |
% |
|
|
4.00 |
% |
|
|
2.79 |
% |
| Cost of total deposits |
|
3.27 |
% |
|
|
3.12 |
% |
|
|
2.38 |
% |
|
|
3.20 |
% |
|
|
2.11 |
% |
| Noninterest deposits to total
deposits |
|
19.12 |
% |
|
|
19.75 |
% |
|
|
23.36 |
% |
|
|
19.12 |
% |
|
|
23.36 |
% |
| Core deposits to total
deposits |
|
81.78 |
% |
|
|
81.45 |
% |
|
|
86.43 |
% |
|
|
81.78 |
% |
|
|
86.43 |
% |
| Uninsured deposits to total
deposits |
|
29.66 |
% |
|
|
28.92 |
% |
|
|
28.75 |
% |
|
|
29.66 |
% |
|
|
28.75 |
% |
| Total loans to total
deposits |
|
92.63 |
% |
|
|
93.14 |
% |
|
|
89.22 |
% |
|
|
92.63 |
% |
|
|
89.22 |
% |
| Efficiency ratio |
|
49.78 |
% |
|
|
46.90 |
% |
|
|
51.00 |
% |
|
|
48.36 |
% |
|
|
50.02 |
% |
| Core efficiency ratio(1) |
|
44.75 |
% |
|
|
46.90 |
% |
|
|
49.96 |
% |
|
|
45.81 |
% |
|
|
49.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
(1) See "Reconciliation of Non-GAAP Financial
Measures" below for reconciliation of non-GAAP financial measures
to their most closely comparable GAAP financial measures.(2)
Includes total interest-bearing liabilities and noninterest
deposits.
|
SELECT FINANCIAL DATA |
|
(Dollars in thousands) |
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Six Months Ended |
|
June 30,2024 |
|
March 31,2024 |
|
June 30,2023 |
|
June 30,2024 |
|
June 30,2023 |
|
|
|
|
|
|
|
|
|
|
| Financial Condition
(ending) |
|
|
|
|
|
|
|
|
|
|
Total loans |
$ |
2,015,434 |
|
|
$ |
1,965,149 |
|
|
$ |
1,716,512 |
|
|
$ |
2,015,434 |
|
|
$ |
1,716,512 |
|
| Total securities |
|
204,131 |
|
|
|
197,006 |
|
|
|
182,717 |
|
|
|
204,131 |
|
|
|
182,717 |
|
| Total assets |
|
2,572,011 |
|
|
|
2,510,975 |
|
|
|
2,277,803 |
|
|
|
2,572,011 |
|
|
|
2,277,803 |
|
| Total noninterest-bearing
deposits |
|
416,068 |
|
|
|
416,704 |
|
|
|
449,433 |
|
|
|
416,068 |
|
|
|
449,433 |
|
| Total core deposits(1) |
|
1,779,253 |
|
|
|
1,718,333 |
|
|
|
1,662,855 |
|
|
|
1,779,253 |
|
|
|
1,662,855 |
|
| Total deposits |
|
2,175,678 |
|
|
|
2,109,798 |
|
|
|
1,923,911 |
|
|
|
2,175,678 |
|
|
|
1,923,911 |
|
| Total borrowings |
|
136,873 |
|
|
|
146,773 |
|
|
|
131,472 |
|
|
|
136,873 |
|
|
|
131,472 |
|
| Total liabilities |
|
2,341,430 |
|
|
|
2,288,094 |
|
|
|
2,080,553 |
|
|
|
2,341,430 |
|
|
|
2,080,553 |
|
| Total shareholders’
equity |
|
230,581 |
|
|
|
222,881 |
|
|
|
197,250 |
|
|
|
230,581 |
|
|
|
197,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Condition (average) |
|
|
|
|
|
|
|
|
|
| Total loans |
$ |
1,987,533 |
|
|
$ |
1,916,288 |
|
|
$ |
1,676,816 |
|
|
$ |
1,951,910 |
|
|
$ |
1,643,376 |
|
| Total securities |
|
210,678 |
|
|
|
208,954 |
|
|
|
196,731 |
|
|
|
209,816 |
|
|
|
194,552 |
|
| Total other interest-earning
assets |
|
242,214 |
|
|
|
211,127 |
|
|
|
218,451 |
|
|
|
226,671 |
|
|
|
182,447 |
|
| Total interest-earning
assets |
|
2,440,425 |
|
|
|
2,336,369 |
|
|
|
2,091,998 |
|
|
|
2,388,397 |
|
|
|
2,020,375 |
|
| Total assets |
|
2,553,010 |
|
|
|
2,447,278 |
|
|
|
2,200,843 |
|
|
|
2,500,144 |
|
|
|
2,129,328 |
|
| Total noninterest-bearing
deposits |
|
420,885 |
|
|
|
416,141 |
|
|
|
438,987 |
|
|
|
418,513 |
|
|
|
438,862 |
|
| Total interest-bearing
deposits |
|
1,729,682 |
|
|
|
1,633,307 |
|
|
|
1,412,047 |
|
|
|
1,681,494 |
|
|
|
1,356,648 |
|
| Total deposits |
|
2,150,567 |
|
|
|
2,049,448 |
|
|
|
1,851,034 |
|
|
|
2,100,007 |
|
|
|
1,795,510 |
|
| Total borrowings |
|
143,189 |
|
|
|
148,771 |
|
|
|
131,411 |
|
|
|
145,980 |
|
|
|
118,229 |
|
| Total interest-bearing
liabilities |
|
1,872,871 |
|
|
|
1,782,078 |
|
|
|
1,543,458 |
|
|
|
1,827,474 |
|
|
|
1,474,877 |
|
| Total shareholders’
equity |
|
226,527 |
|
|
|
219,622 |
|
|
|
193,516 |
|
|
|
223,075 |
|
|
|
190,096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality |
|
|
|
|
|
|
|
|
|
| Nonperforming loans |
$ |
3,784 |
|
|
$ |
3,446 |
|
|
$ |
1,010 |
|
|
$ |
3,784 |
|
|
$ |
1,010 |
|
| Other real estate owned
(“OREO”) |
$ |
33 |
|
|
$ |
33 |
|
|
$ |
2,870 |
|
|
$ |
33 |
|
|
$ |
2,870 |
|
| Nonperforming assets
(“NPA”) |
$ |
3,817 |
|
|
$ |
3,479 |
|
|
$ |
3,880 |
|
|
$ |
3,817 |
|
|
$ |
3,880 |
|
| Net charge-offs to average
loans(2) |
|
0.08 |
% |
|
|
0.10 |
% |
|
|
0.01 |
% |
|
|
0.09 |
% |
|
|
0.03 |
% |
| Provision for credit losses to
average loans(2) |
|
0.22 |
% |
|
|
0.26 |
% |
|
|
0.37 |
% |
|
|
0.24 |
% |
|
|
0.34 |
% |
| ACL to loans |
|
1.28 |
% |
|
|
1.28 |
% |
|
|
1.25 |
% |
|
|
1.28 |
% |
|
|
1.25 |
% |
| ACL to gross loans |
|
1.28 |
% |
|
|
1.28 |
% |
|
|
1.24 |
% |
|
|
1.28 |
% |
|
|
1.24 |
% |
| ACL to NPL |
|
682.56 |
% |
|
|
729.66 |
% |
|
|
2117.33 |
% |
|
|
682.56 |
% |
|
|
2117.33 |
% |
| NPL to loans |
|
0.19 |
% |
|
|
0.18 |
% |
|
|
0.06 |
% |
|
|
0.19 |
% |
|
|
0.06 |
% |
| NPL to gross loans |
|
0.19 |
% |
|
|
0.17 |
% |
|
|
0.06 |
% |
|
|
0.19 |
% |
|
|
0.06 |
% |
| NPA to gross loans and
OREO |
|
0.19 |
% |
|
|
0.18 |
% |
|
|
0.22 |
% |
|
|
0.19 |
% |
|
|
0.22 |
% |
| NPA to total assets |
|
0.15 |
% |
|
|
0.14 |
% |
|
|
0.17 |
% |
|
|
0.15 |
% |
|
|
0.17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory and Other Capital Ratios |
|
|
|
|
|
|
|
|
|
| Total shareholders’ equity to
total assets |
|
8.97 |
% |
|
|
8.88 |
% |
|
|
8.66 |
% |
|
|
8.97 |
% |
|
|
8.66 |
% |
| Tangible common equity to
tangible assets(3) |
|
8.34 |
% |
|
|
8.23 |
% |
|
|
7.94 |
% |
|
|
8.34 |
% |
|
|
7.94 |
% |
| Tier 1 capital ratio to
average assets |
|
8.72 |
% |
|
|
8.79 |
% |
|
|
8.70 |
% |
|
|
8.72 |
% |
|
|
8.70 |
% |
| Risk-based capital
ratios: |
|
|
|
|
|
|
|
|
|
| CET1 capital ratio |
|
9.54 |
% |
|
|
9.39 |
% |
|
|
9.11 |
% |
|
|
9.51 |
% |
|
|
9.11 |
% |
| Tier 1 capital ratio |
|
9.54 |
% |
|
|
9.39 |
% |
|
|
9.11 |
% |
|
|
9.51 |
% |
|
|
9.11 |
% |
| Total capital ratio |
|
14.50 |
% |
|
|
14.42 |
% |
|
|
14.42 |
% |
|
|
14.45 |
% |
|
|
14.42 |
% |
|
|
|
|
|
|
|
|
|
|
|
(1) We define core deposits as total deposits
excluding brokered deposits and time deposits greater than
$250,000.(2) Ratio is annualized.(3) See "Reconciliation of
Non-GAAP Financial Measures" below for reconciliation of non-GAAP
financial measures to their most closely comparable GAAP financial
measures.
|
CONSOLIDATED STATEMENTS OF FINANCIAL
CONDITION |
|
(Dollars in thousands) |
| |
|
|
|
|
|
|
|
| |
June 30,2024 |
|
March 31,2024 |
|
December 31,2023 |
|
June 30,2023 |
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
21,598 |
|
|
$ |
20,470 |
|
|
$ |
19,710 |
|
|
$ |
21,299 |
|
| Interest-bearing deposits in
banks |
|
140,440 |
|
|
|
129,917 |
|
|
|
134,846 |
|
|
|
159,818 |
|
| Federal funds sold |
|
76,334 |
|
|
|
86,736 |
|
|
|
96,095 |
|
|
|
84,812 |
|
|
Total cash and cash equivalents |
|
238,372 |
|
|
|
237,123 |
|
|
|
250,651 |
|
|
|
265,929 |
|
| |
|
|
|
|
|
|
|
| Securities available for sale,
at fair value |
|
184,510 |
|
|
|
177,379 |
|
|
|
179,000 |
|
|
|
163,075 |
|
| Securities held to maturity,
at amortized cost |
|
19,621 |
|
|
|
19,627 |
|
|
|
19,632 |
|
|
|
19,642 |
|
| Other equity securities, at
fair value |
|
3,658 |
|
|
|
3,638 |
|
|
|
3,649 |
|
|
|
3,762 |
|
| Restricted equity securities,
at cost |
|
4,633 |
|
|
|
5,108 |
|
|
|
5,684 |
|
|
|
3,862 |
|
| Loans held for sale |
|
1,716 |
|
|
|
425 |
|
|
|
450 |
|
|
|
1,589 |
|
| |
|
|
|
|
|
|
|
| Loans, net of unearned
income |
|
2,015,434 |
|
|
|
1,965,149 |
|
|
|
1,884,508 |
|
|
|
1,716,512 |
|
| Less allowance for credit
losses |
|
25,828 |
|
|
|
25,144 |
|
|
|
24,378 |
|
|
|
21,385 |
|
|
Loans, net |
|
1,989,606 |
|
|
|
1,940,005 |
|
|
|
1,860,130 |
|
|
|
1,695,127 |
|
| |
|
|
|
|
|
|
|
| Premises and equipment,
net |
|
26,192 |
|
|
|
26,262 |
|
|
|
26,426 |
|
|
|
26,957 |
|
| Accrued interest
receivable |
|
9,654 |
|
|
|
9,561 |
|
|
|
8,711 |
|
|
|
7,372 |
|
| Bank owned life insurance |
|
33,000 |
|
|
|
30,075 |
|
|
|
29,884 |
|
|
|
29,521 |
|
| Annuities |
|
15,918 |
|
|
|
15,939 |
|
|
|
15,036 |
|
|
|
15,359 |
|
| Foreclosed assets |
|
33 |
|
|
|
33 |
|
|
|
33 |
|
|
|
2,870 |
|
| Goodwill |
|
16,862 |
|
|
|
16,862 |
|
|
|
16,862 |
|
|
|
16,862 |
|
| Core deposit intangible |
|
735 |
|
|
|
817 |
|
|
|
899 |
|
|
|
1,062 |
|
| Other assets |
|
27,501 |
|
|
|
28,121 |
|
|
|
29,616 |
|
|
|
24,814 |
|
| |
|
|
|
|
|
|
|
|
Total assets |
$ |
2,572,011 |
|
|
$ |
2,510,975 |
|
|
$ |
2,446,663 |
|
|
$ |
2,277,803 |
|
| |
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
Noninterest-bearing |
$ |
416,068 |
|
|
$ |
416,704 |
|
|
$ |
437,959 |
|
|
$ |
449,433 |
|
|
Interest-bearing |
|
1,759,610 |
|
|
|
1,693,094 |
|
|
|
1,580,230 |
|
|
|
1,474,478 |
|
|
Total deposits |
|
2,175,678 |
|
|
|
2,109,798 |
|
|
|
2,018,189 |
|
|
|
1,923,911 |
|
| |
|
|
|
|
|
|
|
| Other borrowings |
|
8,000 |
|
|
|
7,997 |
|
|
|
26,994 |
|
|
|
(13 |
) |
| FHLB advances |
|
42,000 |
|
|
|
52,000 |
|
|
|
70,000 |
|
|
|
45,000 |
|
| Subordinated notes |
|
86,873 |
|
|
|
86,776 |
|
|
|
86,679 |
|
|
|
86,485 |
|
| Accrued interest payable |
|
2,024 |
|
|
|
1,805 |
|
|
|
1,519 |
|
|
|
1,063 |
|
| Other liabilities |
|
26,855 |
|
|
|
29,718 |
|
|
|
28,318 |
|
|
|
24,107 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
2,341,430 |
|
|
|
2,288,094 |
|
|
|
2,231,699 |
|
|
|
2,080,553 |
|
| |
|
|
|
|
|
|
|
| Stockholders' equity: |
|
|
|
|
|
|
|
|
Common stock |
|
44,813 |
|
|
|
44,746 |
|
|
|
44,479 |
|
|
|
43,831 |
|
|
Capital surplus |
|
79,248 |
|
|
|
79,282 |
|
|
|
78,361 |
|
|
|
77,101 |
|
|
Retained earnings |
|
117,233 |
|
|
|
109,838 |
|
|
|
102,523 |
|
|
|
88,603 |
|
|
Accumulated other comprehensive loss |
|
(8,333 |
) |
|
|
(8,401 |
) |
|
|
(8,379 |
) |
|
|
(10,799 |
) |
|
Unvested restricted stock |
|
(826 |
) |
|
|
(1,030 |
) |
|
|
(466 |
) |
|
|
(709 |
) |
|
Vested restricted stock units |
|
(1,554 |
) |
|
|
(1,554 |
) |
|
|
(1,554 |
) |
|
|
(777 |
) |
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity |
|
230,581 |
|
|
|
222,881 |
|
|
|
214,964 |
|
|
|
197,250 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
2,572,011 |
|
|
$ |
2,510,975 |
|
|
$ |
2,446,663 |
|
|
$ |
2,277,803 |
|
|
CONSOLIDATED STATEMENTS OF INCOME |
|
(Dollars in thousands, except per share amounts) |
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Six Months Ended |
|
June 30,2024 |
|
March 31,2024 |
|
June 30,2023 |
|
June 30,2024 |
|
June 30,2023 |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
| Interest
income: |
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
35,421 |
|
$ |
33,628 |
|
|
$ |
27,630 |
|
|
$ |
69,049 |
|
$ |
52,965 |
|
Taxable securities |
|
2,039 |
|
|
1,981 |
|
|
|
1,641 |
|
|
|
4,020 |
|
|
3,024 |
|
Nontaxable securities |
|
231 |
|
|
229 |
|
|
|
228 |
|
|
|
460 |
|
|
519 |
|
Other interest and dividends |
|
3,316 |
|
|
2,898 |
|
|
|
2,686 |
|
|
|
6,214 |
|
|
4,376 |
|
Total interest income |
|
41,007 |
|
|
38,736 |
|
|
|
32,185 |
|
|
|
79,743 |
|
|
60,884 |
| |
|
|
|
|
|
|
|
|
|
| Interest
expense: |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
17,511 |
|
|
15,906 |
|
|
|
10,998 |
|
|
|
33,417 |
|
|
18,766 |
|
Other borrowings |
|
1,917 |
|
|
1,991 |
|
|
|
1,755 |
|
|
|
3,908 |
|
|
3,140 |
|
Total interest expense |
|
19,428 |
|
|
17,897 |
|
|
|
12,753 |
|
|
|
37,325 |
|
|
21,906 |
| |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
21,579 |
|
|
20,839 |
|
|
|
19,432 |
|
|
|
42,418 |
|
|
38,978 |
| Provision for credit
losses |
|
1,067 |
|
|
1,236 |
|
|
|
1,557 |
|
|
|
2,303 |
|
|
2,738 |
|
Net interest income after provision for credit
losses |
|
20,512 |
|
|
19,603 |
|
|
|
17,875 |
|
|
|
40,115 |
|
|
36,240 |
| |
|
|
|
|
|
|
|
|
|
| Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
462 |
|
|
463 |
|
|
|
456 |
|
|
|
925 |
|
|
906 |
|
Swap fees |
|
4 |
|
|
15 |
|
|
|
173 |
|
|
|
19 |
|
|
169 |
|
SBA/USDA fees |
|
58 |
|
|
64 |
|
|
|
66 |
|
|
|
122 |
|
|
200 |
|
Mortgage origination fees |
|
92 |
|
|
96 |
|
|
|
188 |
|
|
|
188 |
|
|
288 |
|
Net gain (loss) on securities |
|
20 |
|
|
(12 |
) |
|
|
(45 |
) |
|
|
8 |
|
|
469 |
|
Employee retention credit and related revenue |
|
— |
|
|
— |
|
|
|
5,100 |
|
|
|
— |
|
|
5,100 |
|
Other operating income |
|
732 |
|
|
642 |
|
|
|
924 |
|
|
|
1,374 |
|
|
1,516 |
|
Total noninterest income |
|
1,368 |
|
|
1,268 |
|
|
|
6,862 |
|
|
|
2,636 |
|
|
8,648 |
| |
|
|
|
|
|
|
|
|
|
| Noninterest
expenses: |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
6,112 |
|
|
6,231 |
|
|
|
7,863 |
|
|
|
12,343 |
|
|
14,174 |
|
Equipment and occupancy expenses |
|
667 |
|
|
689 |
|
|
|
694 |
|
|
|
1,356 |
|
|
1,377 |
|
Data processing fees |
|
686 |
|
|
643 |
|
|
|
646 |
|
|
|
1,329 |
|
|
1,239 |
|
Regulatory assessments |
|
375 |
|
|
360 |
|
|
|
180 |
|
|
|
735 |
|
|
522 |
| Professional fees related to
ERC |
|
— |
|
|
— |
|
|
|
1,243 |
|
|
|
— |
|
|
1,243 |
| Other operating expenses |
|
3,571 |
|
|
2,452 |
|
|
|
2,806 |
|
|
|
6,023 |
|
|
5,035 |
|
Total noninterest expenses |
|
11,411 |
|
|
10,375 |
|
|
|
13,432 |
|
|
|
21,786 |
|
|
23,590 |
| |
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
10,469 |
|
|
10,496 |
|
|
|
11,305 |
|
|
|
20,965 |
|
|
21,298 |
| |
|
|
|
|
|
|
|
|
|
| Income tax expense |
|
2,271 |
|
|
2,377 |
|
|
|
2,549 |
|
|
|
4,648 |
|
|
4,871 |
| |
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
8,198 |
|
$ |
8,119 |
|
|
$ |
8,756 |
|
|
$ |
16,317 |
|
$ |
16,427 |
| |
|
|
|
|
|
|
|
|
|
| Basic earnings per
share |
$ |
0.91 |
|
$ |
0.91 |
|
|
$ |
1.00 |
|
|
$ |
1.82 |
|
$ |
1.87 |
| |
|
|
|
|
|
|
|
|
|
| Diluted earnings per
share |
$ |
0.90 |
|
$ |
0.90 |
|
|
$ |
0.98 |
|
|
$ |
1.80 |
|
$ |
1.82 |
|
AVERAGE BALANCE SHEET AND NET INTEREST MARGIN |
|
(Dollars in thousands) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
June 30,2024 |
|
March 31,2024 |
|
June 30,2023 |
|
AverageBalance |
|
Interest |
|
Yield/Rate |
|
AverageBalance |
|
Interest |
|
Yield/Rate |
|
AverageBalance |
|
Interest |
|
Yield/Rate |
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned income(1) |
$ |
1,987,533 |
|
|
$ |
35,421 |
|
7.17 |
% |
|
$ |
1,916,288 |
|
|
$ |
33,628 |
|
7.06 |
% |
|
$ |
1,676,816 |
|
|
$ |
27,630 |
|
6.61 |
% |
| Taxable securities |
|
165,141 |
|
|
|
2,039 |
|
4.97 |
% |
|
|
163,586 |
|
|
|
1,981 |
|
4.87 |
% |
|
|
151,107 |
|
|
|
1,641 |
|
4.36 |
% |
| Nontaxable securities |
|
45,537 |
|
|
|
231 |
|
2.04 |
% |
|
|
45,368 |
|
|
|
229 |
|
2.03 |
% |
|
|
45,624 |
|
|
|
228 |
|
2.00 |
% |
| Other interest-earnings
assets |
|
242,214 |
|
|
|
3,316 |
|
5.51 |
% |
|
|
211,127 |
|
|
|
2,898 |
|
5.52 |
% |
|
|
218,451 |
|
|
|
2,686 |
|
4.93 |
% |
|
Total interest-earning assets |
$ |
2,440,425 |
|
|
$ |
41,007 |
|
6.76 |
% |
|
$ |
2,336,369 |
|
|
$ |
38,736 |
|
6.67 |
% |
|
$ |
2,091,998 |
|
|
$ |
32,185 |
|
6.17 |
% |
|
Allowance for credit losses |
|
(25,332 |
) |
|
|
|
|
|
|
(24,313 |
) |
|
|
|
|
|
|
(20,154 |
) |
|
|
|
|
|
Noninterest-earning assets |
|
137,917 |
|
|
|
|
|
|
|
135,222 |
|
|
|
|
|
|
|
128,999 |
|
|
|
|
|
|
Total Assets |
$ |
2,553,010 |
|
|
|
|
|
|
$ |
2,447,278 |
|
|
|
|
|
|
$ |
2,200,843 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction accounts |
|
85,976 |
|
|
|
21 |
|
0.10 |
% |
|
|
85,858 |
|
|
|
26 |
|
0.12 |
% |
|
|
92,245 |
|
|
|
20 |
|
0.09 |
% |
|
Savings and money market accounts |
|
929,930 |
|
|
|
9,229 |
|
3.99 |
% |
|
|
902,361 |
|
|
|
8,804 |
|
3.92 |
% |
|
|
845,742 |
|
|
|
6,872 |
|
3.26 |
% |
|
Time deposits |
|
713,776 |
|
|
|
8,261 |
|
4.65 |
% |
|
|
645,088 |
|
|
|
7,076 |
|
4.41 |
% |
|
|
474,060 |
|
|
|
4,106 |
|
3.47 |
% |
|
FHLB advances |
|
48,374 |
|
|
|
596 |
|
4.96 |
% |
|
|
53,121 |
|
|
|
655 |
|
4.96 |
% |
|
|
45,000 |
|
|
|
529 |
|
4.72 |
% |
|
Other borrowings |
|
94,815 |
|
|
|
1,321 |
|
5.60 |
% |
|
|
95,650 |
|
|
|
1,336 |
|
5.62 |
% |
|
|
86,411 |
|
|
|
1,226 |
|
5.69 |
% |
|
Total interest-bearing liabilities |
$ |
1,872,871 |
|
|
$ |
19,428 |
|
4.17 |
% |
|
$ |
1,782,078 |
|
|
$ |
17,897 |
|
4.04 |
% |
|
$ |
1,543,458 |
|
|
$ |
12,753 |
|
3.31 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
420,885 |
|
|
|
|
|
|
$ |
416,141 |
|
|
|
|
|
|
$ |
438,987 |
|
|
|
|
|
|
Other liabilities |
|
32,727 |
|
|
|
|
|
|
|
29,437 |
|
|
|
|
|
|
|
24,882 |
|
|
|
|
|
|
Total noninterest-bearing liabilities |
$ |
453,612 |
|
|
|
|
|
|
$ |
445,578 |
|
|
|
|
|
|
$ |
463,869 |
|
|
|
|
|
|
Stockholders’ Equity |
|
226,527 |
|
|
|
|
|
|
|
219,622 |
|
|
|
|
|
|
|
193,516 |
|
|
|
|
|
|
Total Liabilities and Stockholders’ Equity |
$ |
2,553,010 |
|
|
|
|
|
|
$ |
2,447,278 |
|
|
|
|
|
|
$ |
2,200,843 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income |
|
|
$ |
21,579 |
|
|
|
|
|
$ |
20,839 |
|
|
|
|
|
$ |
19,432 |
|
|
| Net interest spread(2) |
|
|
|
|
2.59 |
% |
|
|
|
|
|
2.63 |
% |
|
|
|
|
|
2.86 |
% |
| Net interest margin(3) |
|
|
|
|
3.56 |
% |
|
|
|
|
|
3.59 |
% |
|
|
|
|
|
3.73 |
% |
| Net interest margin -
FTE(4)(5) |
|
|
|
|
3.57 |
% |
|
|
|
|
|
3.60 |
% |
|
|
|
|
|
3.74 |
% |
| Cost of funds(6) |
|
|
|
|
3.41 |
% |
|
|
|
|
|
3.27 |
% |
|
|
|
|
|
2.58 |
% |
| Cost of interest-bearing
deposits |
|
|
|
|
4.07 |
% |
|
|
|
|
|
3.92 |
% |
|
|
|
|
|
3.12 |
% |
| Cost of total deposits |
|
|
|
|
3.27 |
% |
|
|
|
|
|
3.12 |
% |
|
|
|
|
|
2.38 |
% |
(1) Includes nonaccrual loans.(2) Net interest
spread is the difference between interest rates earned on
interest-earning assets and interest rates paid on interest-bearing
liabilities.(3) Net interest margin is a ratio of net interest
income to average interest-earning assets for the same period.(4)
Net interest margin - FTE is a ratio of fully-taxable equivalent
net interest income to average interest-earning assets for the same
period. It assumes a 24.0% tax rate.(5) Refer to “Reconciliation of
Non-GAAP Financial Measures”.(6) Includes total interest-bearing
liabilities and noninterest deposits.
|
AVERAGE BALANCE SHEET AND NET INTEREST MARGIN |
|
(Dollars in thousands) |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Six Months Ended |
|
June 30,2024 |
|
June 30,2023 |
|
AverageBalance |
|
Interest |
|
Yield/Rate |
|
AverageBalance |
|
Interest |
|
Yield/Rate |
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned income(1) |
$ |
1,951,910 |
|
|
$ |
69,049 |
|
7.11 |
% |
|
$ |
1,643,376 |
|
|
$ |
52,965 |
|
6.50 |
% |
| Taxable securities |
|
164,363 |
|
|
|
4,020 |
|
4.92 |
% |
|
|
145,344 |
|
|
|
3,024 |
|
4.20 |
% |
| Nontaxable securities |
|
45,453 |
|
|
|
460 |
|
2.04 |
% |
|
|
49,208 |
|
|
|
519 |
|
2.13 |
% |
| Other interest-earnings
assets |
|
226,671 |
|
|
|
6,214 |
|
5.51 |
% |
|
|
182,447 |
|
|
|
4,376 |
|
4.84 |
% |
|
Total interest-earning assets |
$ |
2,388,397 |
|
|
$ |
79,743 |
|
6.71 |
% |
|
$ |
2,020,375 |
|
|
$ |
60,884 |
|
6.08 |
% |
|
Allowance for credit losses |
|
(24,822 |
) |
|
|
|
|
|
|
(20,315 |
) |
|
|
|
|
|
Noninterest-earning assets |
|
136,569 |
|
|
|
|
|
|
|
129,268 |
|
|
|
|
|
|
Total Assets |
$ |
2,500,144 |
|
|
|
|
|
|
$ |
2,129,328 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction accounts |
|
85,917 |
|
|
|
48 |
|
0.11 |
% |
|
|
93,093 |
|
|
|
40 |
|
0.09 |
% |
|
Savings and money market accounts |
|
916,145 |
|
|
|
18,032 |
|
3.96 |
% |
|
|
825,982 |
|
|
|
11,911 |
|
2.91 |
% |
|
Time deposits |
|
679,432 |
|
|
|
15,337 |
|
4.54 |
% |
|
|
437,573 |
|
|
|
6,815 |
|
3.14 |
% |
|
FHLB advances |
|
50,747 |
|
|
|
1,251 |
|
4.96 |
% |
|
|
31,862 |
|
|
|
688 |
|
4.35 |
% |
|
Other borrowings |
|
95,233 |
|
|
|
2,657 |
|
5.61 |
% |
|
|
86,367 |
|
|
|
2,452 |
|
5.73 |
% |
|
Total interest-bearing liabilities |
$ |
1,827,474 |
|
|
$ |
37,325 |
|
4.11 |
% |
|
$ |
1,474,877 |
|
|
$ |
21,906 |
|
3.00 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
418,513 |
|
|
|
|
|
|
$ |
438,862 |
|
|
|
|
|
|
Other liabilities |
|
31,082 |
|
|
|
|
|
|
|
25,493 |
|
|
|
|
|
|
Total noninterest-bearing liabilities |
$ |
449,595 |
|
|
|
|
|
|
$ |
464,355 |
|
|
|
|
|
|
Stockholders’ Equity |
|
223,075 |
|
|
|
|
|
|
|
190,096 |
|
|
|
|
|
|
Total Liabilities and Stockholders’ Equity |
$ |
2,500,144 |
|
|
|
|
|
|
$ |
2,129,328 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Net interest income |
|
|
$ |
42,418 |
|
|
|
|
|
$ |
38,978 |
|
|
| Net interest spread(2) |
|
|
|
|
2.60 |
% |
|
|
|
|
|
3.08 |
% |
| Net interest margin(3) |
|
|
|
|
3.57 |
% |
|
|
|
|
|
3.89 |
% |
| Net interest margin -
FTE(4)(5) |
|
|
|
|
3.58 |
% |
|
|
|
|
|
3.90 |
% |
| Cost of funds(6) |
|
|
|
|
3.34 |
% |
|
|
|
|
|
2.31 |
% |
| Cost of interest-bearing
deposits |
|
|
|
|
4.00 |
% |
|
|
|
|
|
2.79 |
% |
| Cost of total deposits |
|
|
|
|
3.20 |
% |
|
|
|
|
|
2.11 |
% |
(1) Includes nonaccrual loans.(2) Net interest
spread is the difference between interest rates earned on
interest-earning assets and interest rates paid on interest-bearing
liabilities.(3) Net interest margin is a ratio of net interest
income to average interest-earning assets for the same period.(4)
Net interest margin - FTE is a ratio of fully-taxable equivalent
net interest income to average interest-earning assets for the same
period. It assumes a 24.0% tax rate.(5) Refer to “Reconciliation of
Non-GAAP Financial Measures”.(6) Includes total interest-bearing
liabilities and noninterest deposits.
|
LOAN COMPOSITION |
|
(Dollars in thousands) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
June 30,2024 |
|
March 31,2024 |
|
December 31,2023 |
|
June 30,2023 |
|
Amount |
|
% of gross |
|
Amount |
|
% of gross |
|
Amount |
|
% of gross |
|
Amount |
|
% of gross |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Real estate mortgages: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and development |
$ |
242,573 |
|
|
12.0 |
% |
|
$ |
252,934 |
|
|
12.8 |
% |
|
$ |
242,960 |
|
|
12.9 |
% |
|
$ |
228,236 |
|
|
13.3 |
% |
|
Residential |
|
249,498 |
|
|
12.3 |
% |
|
|
238,702 |
|
|
12.1 |
% |
|
|
224,603 |
|
|
11.9 |
% |
|
|
214,897 |
|
|
12.5 |
% |
|
Commercial |
|
1,222,739 |
|
|
60.5 |
% |
|
|
1,182,634 |
|
|
60.0 |
% |
|
|
1,144,867 |
|
|
60.5 |
% |
|
|
1,011,815 |
|
|
58.7 |
% |
| Commercial and industrial |
|
297,501 |
|
|
14.7 |
% |
|
|
288,701 |
|
|
14.7 |
% |
|
|
269,961 |
|
|
14.3 |
% |
|
|
259,195 |
|
|
15.0 |
% |
| Consumer and other |
|
9,566 |
|
|
0.5 |
% |
|
|
8,425 |
|
|
0.4 |
% |
|
|
8,286 |
|
|
0.4 |
% |
|
|
8,135 |
|
|
0.5 |
% |
|
Gross loans |
|
2,021,877 |
|
|
100.0 |
% |
|
|
1,971,396 |
|
|
100.0 |
% |
|
|
1,890,677 |
|
|
100.0 |
% |
|
|
1,722,278 |
|
|
100.0 |
% |
| Unearned income |
|
(6,443 |
) |
|
|
|
|
(6,247 |
) |
|
|
|
|
(6,169 |
) |
|
|
|
|
(5,766 |
) |
|
|
|
Loans, net of unearned income |
|
2,015,434 |
|
|
|
|
|
1,965,149 |
|
|
|
|
|
1,884,508 |
|
|
|
|
|
1,716,512 |
|
|
|
| Allowance for credit
losses |
|
(25,828 |
) |
|
|
|
|
(25,144 |
) |
|
|
|
|
(24,378 |
) |
|
|
|
|
(21,385 |
) |
|
|
|
Loans, net |
$ |
1,989,606 |
|
|
|
|
$ |
1,940,005 |
|
|
|
|
$ |
1,860,130 |
|
|
|
|
$ |
1,695,127 |
|
|
|
|
DEPOSIT COMPOSITION |
|
(Dollars in thousands) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
June 30,2024 |
|
March 31,2024 |
|
December 31,2023 |
|
June 30,2023 |
|
Amount |
|
% of total |
|
Amount |
|
% of total |
|
Amount |
|
% of total |
|
Amount |
|
% of total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing transaction |
$ |
416,068 |
|
19.1 |
% |
|
$ |
416,704 |
|
19.7 |
% |
|
$ |
437,959 |
|
21.7 |
% |
|
$ |
449,433 |
|
23.3 |
% |
| Interest-bearing
transaction |
|
1,006,687 |
|
46.3 |
% |
|
|
974,079 |
|
46.2 |
% |
|
|
946,347 |
|
46.9 |
% |
|
|
922,835 |
|
48.0 |
% |
| Savings |
|
32,527 |
|
1.5 |
% |
|
|
33,909 |
|
1.6 |
% |
|
|
35,412 |
|
1.7 |
% |
|
|
41,574 |
|
2.2 |
% |
| Time deposits, $250,000 and
under |
|
612,299 |
|
28.1 |
% |
|
|
584,658 |
|
27.7 |
% |
|
|
500,406 |
|
24.8 |
% |
|
|
438,228 |
|
22.8 |
% |
| Time deposits, over
$250,000 |
|
108,097 |
|
5.0 |
% |
|
|
100,448 |
|
4.8 |
% |
|
|
98,065 |
|
4.9 |
% |
|
|
71,841 |
|
3.7 |
% |
|
Total deposits |
$ |
2,175,678 |
|
100.0 |
% |
|
$ |
2,109,798 |
|
100.0 |
% |
|
$ |
2,018,189 |
|
100.0 |
% |
|
$ |
1,923,911 |
|
100.0 |
% |
|
Nonperforming Assets |
|
(Dollars in thousands) |
| |
|
|
|
|
|
|
|
| |
June 30,2024 |
|
March 31,2024 |
|
December 31,2023 |
|
June 30,2023 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Nonaccrual loans |
$ |
3,784 |
|
|
$ |
3,446 |
|
|
$ |
1,017 |
|
|
$ |
1,010 |
|
| Past due loans 90 days or more
and still accruing interest |
|
— |
|
|
|
— |
|
|
|
160 |
|
|
|
— |
|
|
Total nonperforming loans |
|
3,784 |
|
|
|
3,446 |
|
|
|
1,177 |
|
|
|
1,010 |
|
| OREO |
|
33 |
|
|
|
33 |
|
|
|
33 |
|
|
|
2,870 |
|
|
Total nonperforming assets |
$ |
3,817 |
|
|
$ |
3,479 |
|
|
$ |
1,210 |
|
|
$ |
3,880 |
|
| |
|
|
|
|
|
|
|
| Financial difficulty
modification loans – nonaccrual(1) |
|
647 |
|
|
|
675 |
|
|
|
907 |
|
|
|
724 |
|
| Financial difficulty
modification loans – accruing |
|
1,093 |
|
|
|
1,283 |
|
|
|
1,095 |
|
|
|
1,328 |
|
|
Financial difficulty modification loans |
$ |
1,740 |
|
|
$ |
1,958 |
|
|
$ |
2,002 |
|
|
$ |
2,052 |
|
| |
|
|
|
|
|
|
|
| Allowance for credit
losses |
$ |
25,828 |
|
|
$ |
25,144 |
|
|
$ |
24,378 |
|
|
$ |
21,385 |
|
| Loans, net of unearned income
at the end of the period |
$ |
2,015,434 |
|
|
$ |
1,965,149 |
|
|
$ |
1,884,508 |
|
|
$ |
1,716,512 |
|
| Gross loans outstanding at the
end of period |
$ |
2,021,877 |
|
|
$ |
1,971,396 |
|
|
$ |
1,890,677 |
|
|
$ |
1,722,278 |
|
| Total assets |
$ |
2,572,011 |
|
|
$ |
2,510,975 |
|
|
$ |
2,446,663 |
|
|
$ |
2,277,803 |
|
| Allowance for credit losses to
nonperforming loans |
|
682.56 |
% |
|
|
729.66 |
% |
|
|
2071.20 |
% |
|
|
2117.33 |
% |
| Nonperforming loans to loans,
net of unearned income |
|
0.19 |
% |
|
|
0.18 |
% |
|
|
0.06 |
% |
|
|
0.06 |
% |
| Nonperforming loans to gross
loans |
|
0.19 |
% |
|
|
0.17 |
% |
|
|
0.06 |
% |
|
|
0.06 |
% |
| Nonperforming assets to gross
loans and OREO |
|
0.19 |
% |
|
|
0.18 |
% |
|
|
0.06 |
% |
|
|
0.22 |
% |
| Nonperforming assets to total
assets |
|
0.15 |
% |
|
|
0.14 |
% |
|
|
0.05 |
% |
|
|
0.17 |
% |
| |
|
|
|
|
|
|
|
| Nonaccrual loans by
category: |
|
|
|
|
|
|
|
| Real estate mortgages: |
|
|
|
|
|
|
|
|
Construction & Development |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
33 |
|
|
Residential Mortgages |
|
393 |
|
|
|
246 |
|
|
|
252 |
|
|
|
297 |
|
|
Commercial Real Estate Mortgages |
|
2,182 |
|
|
|
2,422 |
|
|
|
765 |
|
|
|
671 |
|
| Commercial &
Industrial |
|
1,209 |
|
|
|
778 |
|
|
|
— |
|
|
|
9 |
|
| Consumer and other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Total |
$ |
3,784 |
|
|
$ |
3,446 |
|
|
$ |
1,017 |
|
|
$ |
1,010 |
|
(1) Financial difficulty modifications loans are
excluded from nonperforming loans unless they otherwise meet the
definition of nonaccrual loans or are more than 90 days past
due.
|
Allowance for Credit Losses |
|
(Dollars in thousands) |
| |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30,2024 |
|
March 31,2024 |
|
June 30,2023 |
|
June 30,2024 |
|
June 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
Average loans, net of unearned income |
$ |
1,987,533 |
|
|
$ |
1,916,288 |
|
|
$ |
1,676,816 |
|
|
$ |
1,951,910 |
|
|
$ |
1,643,376 |
|
| Loans, net of unearned
income |
|
2,015,434 |
|
|
|
1,965,149 |
|
|
|
1,716,512 |
|
|
|
2,015,434 |
|
|
|
1,716,512 |
|
| Gross loans |
|
2,021,877 |
|
|
|
1,971,396 |
|
|
|
1,722,278 |
|
|
|
2,021,877 |
|
|
|
1,722,278 |
|
| Allowance for credit losses at
beginning of the period |
|
25,144 |
|
|
|
24,378 |
|
|
|
19,855 |
|
|
|
24,378 |
|
|
|
20,156 |
|
| Impact of adoption of ASC
326 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,285 |
) |
| Charge-offs: |
|
|
|
|
|
|
|
|
|
|
Construction and development |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Residential |
|
— |
|
|
|
11 |
|
|
|
— |
|
|
|
11 |
|
|
|
— |
|
|
Commercial |
|
11 |
|
|
|
27 |
|
|
|
— |
|
|
|
38 |
|
|
|
— |
|
|
Commercial and industrial |
|
384 |
|
|
|
442 |
|
|
|
44 |
|
|
|
826 |
|
|
|
262 |
|
|
Consumer and other |
|
10 |
|
|
|
15 |
|
|
|
— |
|
|
|
25 |
|
|
|
6 |
|
|
Total charge-offs |
|
405 |
|
|
|
495 |
|
|
|
44 |
|
|
|
900 |
|
|
|
268 |
|
| Recoveries: |
|
|
|
|
|
|
|
|
|
|
Construction and development |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Residential |
|
6 |
|
|
|
8 |
|
|
|
17 |
|
|
|
14 |
|
|
|
28 |
|
|
Commercial |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Commercial and industrial |
|
15 |
|
|
|
16 |
|
|
|
— |
|
|
|
31 |
|
|
|
14 |
|
|
Consumer and other |
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|
2 |
|
|
|
2 |
|
|
Total recoveries |
|
22 |
|
|
|
25 |
|
|
|
17 |
|
|
|
47 |
|
|
|
44 |
|
|
Net charge-offs |
$ |
383 |
|
|
$ |
470 |
|
|
$ |
27 |
|
|
$ |
853 |
|
|
$ |
224 |
|
| |
|
|
|
|
|
|
|
|
|
| Provision for credit
losses |
$ |
1,067 |
|
|
$ |
1,236 |
|
|
$ |
1,557 |
|
|
$ |
2,303 |
|
|
$ |
2,738 |
|
| Balance at end of the
period |
$ |
25,828 |
|
|
$ |
25,144 |
|
|
$ |
21,385 |
|
|
$ |
25,828 |
|
|
$ |
21,385 |
|
| |
|
|
|
|
|
|
|
|
|
| Allowance for credit losses on
unfunded commitments at beginning of the period |
$ |
1,288 |
|
|
$ |
1,239 |
|
|
$ |
1,285 |
|
|
$ |
1,239 |
|
|
$ |
— |
|
| Impact of adoption of ASC
326 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,285 |
|
| (Credit) provision for credit
losses on unfunded commitments |
|
(82 |
) |
|
|
49 |
|
|
|
210 |
|
|
|
(33 |
) |
|
|
210 |
|
| Balance at the end of the
period |
$ |
1,206 |
|
|
$ |
1,288 |
|
|
$ |
1,495 |
|
|
$ |
1,206 |
|
|
$ |
1,495 |
|
| |
|
|
|
|
|
|
|
|
|
| Allowance to loans, net of
unearned income |
|
1.28 |
% |
|
|
1.28 |
% |
|
|
1.25 |
% |
|
|
1.28 |
% |
|
|
1.25 |
% |
| Allowance to gross loans |
|
1.28 |
% |
|
|
1.28 |
% |
|
|
1.24 |
% |
|
|
1.28 |
% |
|
|
1.24 |
% |
| Net charge-offs to average
loans, net of unearned income(1) |
|
0.08 |
% |
|
|
0.10 |
% |
|
|
0.01 |
% |
|
|
0.09 |
% |
|
|
0.03 |
% |
| Provision for credit losses to
average loans, net of unearned income(1) |
|
0.22 |
% |
|
|
0.26 |
% |
|
|
0.37 |
% |
|
|
0.24 |
% |
|
|
0.34 |
% |
(1) Ratio is annualized.
|
Reconciliation of Non-GAAP Financial Measures |
Noninterest Expense
In addition to reporting GAAP results, the
Company reports non-GAAP financial measures in this earnings
release and other disclosures. Our management believes that these
non-GAAP financial measures and the information they provide are
useful to investors since these measures permit investors to view
our performance using the same tools that our management uses to
evaluate our performance. While we believe that these non-GAAP
financial measures are useful in evaluating our performance, this
information should be considered as supplemental in nature and not
as a substitute for or superior to the related financial
information prepared in accordance with GAAP. Additionally, these
non-GAAP financial measures may differ from similar measures
presented by other companies.
The following table provides a reconciliation of
the non-GAAP financial measures to their most directly comparable
financial measure presented in accordance with GAAP.
|
Reconciliation of Non-GAAP Financial Measures |
|
(Dollars in thousands, except share and per share amounts) |
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Six Months Ended |
|
June 30,2024 |
|
March 31,2024 |
|
June 30,2023 |
|
June 30,2024 |
|
June 30,2023 |
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
8,198 |
|
|
$ |
8,119 |
|
|
$ |
8,756 |
|
|
$ |
16,317 |
|
|
$ |
16,427 |
|
| Add: One-time retirement
related expenses |
|
— |
|
|
|
— |
|
|
|
1,571 |
|
|
|
— |
|
|
|
1,571 |
|
| Add: Professional fees related
to ERC |
|
— |
|
|
|
— |
|
|
|
1,243 |
|
|
|
— |
|
|
|
1,243 |
|
| Add: Wire fraud loss |
|
1,155 |
|
|
|
— |
|
|
|
— |
|
|
|
1,155 |
|
|
|
— |
|
| Add: Net OREO (gain) loss |
|
(3 |
) |
|
|
— |
|
|
|
7 |
|
|
|
(3 |
) |
|
|
7 |
|
| Less: Employee retention
related revenue |
|
— |
|
|
|
— |
|
|
|
5,100 |
|
|
|
— |
|
|
|
5,100 |
|
| Less: Net gain (loss) on
securities |
|
20 |
|
|
|
(12 |
) |
|
|
(45 |
) |
|
|
8 |
|
|
|
469 |
|
| Less: Tax effect |
|
272 |
|
|
|
3 |
|
|
|
(536 |
) |
|
|
275 |
|
|
|
(660 |
) |
| Core net
income |
$ |
9,058 |
|
|
$ |
8,128 |
|
|
$ |
7,058 |
|
|
$ |
17,186 |
|
|
$ |
14,339 |
|
| Average assets |
$ |
2,553,010 |
|
|
$ |
2,447,278 |
|
|
$ |
2,200,843 |
|
|
$ |
2,500,144 |
|
|
$ |
2,129,328 |
|
| Core return on average
assets |
|
1.43 |
% |
|
|
1.34 |
% |
|
|
1.29 |
% |
|
|
1.38 |
% |
|
|
1.36 |
% |
| |
|
|
|
|
|
|
|
|
|
| Net income |
$ |
8,198 |
|
|
$ |
8,119 |
|
|
$ |
8,756 |
|
|
$ |
16,317 |
|
|
$ |
16,427 |
|
| Add: One-time retirement
related expenses |
|
— |
|
|
|
— |
|
|
|
1,571 |
|
|
|
— |
|
|
|
1,571 |
|
| Add: Professional fees related
to ERC |
|
— |
|
|
|
— |
|
|
|
1,243 |
|
|
|
— |
|
|
|
1,243 |
|
| Add: Wire fraud loss |
|
1,155 |
|
|
|
— |
|
|
|
— |
|
|
|
1,155 |
|
|
|
— |
|
| Add: Net OREO (gain) loss |
|
(3 |
) |
|
|
— |
|
|
|
7 |
|
|
|
(3 |
) |
|
|
7 |
|
| Add: Provision |
|
1,067 |
|
|
|
1,236 |
|
|
|
1,557 |
|
|
|
2,303 |
|
|
|
2,738 |
|
| Less: Employee retention
related revenue |
|
— |
|
|
|
— |
|
|
|
5,100 |
|
|
|
— |
|
|
|
5,100 |
|
| Less: Net gain (loss) on
securities |
|
20 |
|
|
|
(12 |
) |
|
|
(45 |
) |
|
|
8 |
|
|
|
469 |
|
| Add: Income taxes |
|
2,271 |
|
|
|
2,377 |
|
|
|
2,549 |
|
|
|
4,648 |
|
|
|
4,871 |
|
| Pretax pre-provision
core net income |
$ |
12,668 |
|
|
$ |
11,744 |
|
|
$ |
10,628 |
|
|
$ |
24,412 |
|
|
$ |
21,288 |
|
| Average assets |
$ |
2,553,010 |
|
|
$ |
2,447,278 |
|
|
$ |
2,200,843 |
|
|
$ |
2,500,144 |
|
|
$ |
2,129,328 |
|
| Pretax pre-provision
core return on average assets |
|
2.00 |
% |
|
|
1.93 |
% |
|
|
1.94 |
% |
|
|
1.96 |
% |
|
|
2.02 |
% |
| |
|
|
|
|
|
|
|
|
|
| Net interest income |
$ |
21,579 |
|
|
$ |
20,839 |
|
|
$ |
19,432 |
|
|
$ |
42,418 |
|
|
$ |
38,978 |
|
| Add: Fully-taxable equivalent
adjustments(1) |
|
73 |
|
|
|
73 |
|
|
|
65 |
|
|
|
146 |
|
|
|
143 |
|
| Net interest income -
FTE |
$ |
21,652 |
|
|
$ |
20,912 |
|
|
$ |
19,497 |
|
|
$ |
42,564 |
|
|
$ |
39,121 |
|
| |
|
|
|
|
|
|
|
|
|
| Net interest margin |
|
3.56 |
% |
|
|
3.59 |
% |
|
|
3.73 |
% |
|
|
3.57 |
% |
|
|
3.89 |
% |
| Effect of fully-taxable
equivalent adjustments(1) |
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
| Net interest margin -
FTE |
|
3.57 |
% |
|
|
3.60 |
% |
|
|
3.74 |
% |
|
|
3.58 |
% |
|
|
3.90 |
% |
| |
|
|
|
|
|
|
|
|
|
| Total stockholders'
equity |
$ |
230,581 |
|
|
$ |
222,881 |
|
|
$ |
197,250 |
|
|
$ |
230,581 |
|
|
$ |
197,250 |
|
| Less: Intangible assets |
|
17,597 |
|
|
|
17,679 |
|
|
|
17,924 |
|
|
|
17,597 |
|
|
|
17,924 |
|
| Tangible common
equity |
$ |
212,984 |
|
|
$ |
205,202 |
|
|
$ |
179,326 |
|
|
$ |
212,984 |
|
|
$ |
179,326 |
|
| |
|
|
|
|
|
|
|
|
|
|
(1) Assumes a 24.0% tax rate. |
| |
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures |
|
(Dollars in thousands, except share and per share amounts) |
| |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30,2024 |
|
March 31,2024 |
|
June 30,2023 |
|
June 30,2024 |
|
June 30,2023 |
|
|
|
|
|
|
|
|
|
|
| Core net income |
$ |
9,058 |
|
|
$ |
8,128 |
|
|
$ |
7,058 |
|
|
$ |
17,186 |
|
|
$ |
14,339 |
|
| Diluted weighted average
shares outstanding |
|
9,070,568 |
|
|
|
9,043,122 |
|
|
|
8,950,847 |
|
|
|
9,062,548 |
|
|
|
9,001,600 |
|
| Diluted core earnings
per share |
$ |
1.00 |
|
|
$ |
0.90 |
|
|
$ |
0.79 |
|
|
$ |
1.90 |
|
|
$ |
1.59 |
|
| |
|
|
|
|
|
|
|
|
|
| Common shares outstanding at
year or period end |
|
8,908,130 |
|
|
|
8,894,794 |
|
|
|
8,738,814 |
|
|
|
8,908,130 |
|
|
|
8,738,814 |
|
| Tangible book value
per share |
$ |
23.91 |
|
|
$ |
23.07 |
|
|
$ |
20.52 |
|
|
$ |
23.91 |
|
|
$ |
20.52 |
|
| |
|
|
|
|
|
|
|
|
|
| Total assets at end of
period |
$ |
2,572,011 |
|
|
$ |
2,510,975 |
|
|
$ |
2,277,803 |
|
|
$ |
2,572,011 |
|
|
$ |
2,277,803 |
|
| Less: Intangible assets |
|
17,597 |
|
|
|
17,679 |
|
|
|
17,924 |
|
|
|
17,597 |
|
|
|
17,924 |
|
| Adjusted assets at end of
period |
$ |
2,554,414 |
|
|
$ |
2,493,296 |
|
|
$ |
2,259,879 |
|
|
$ |
2,554,414 |
|
|
$ |
2,259,879 |
|
| Tangible common equity
to tangible assets |
|
8.34 |
% |
|
|
8.23 |
% |
|
|
7.94 |
% |
|
|
8.34 |
% |
|
|
7.94 |
% |
| |
|
|
|
|
|
|
|
|
|
| Total average shareholders
equity |
$ |
226,527 |
|
|
$ |
219,622 |
|
|
$ |
193,516 |
|
|
$ |
223,075 |
|
|
$ |
190,096 |
|
| Less: Average intangible
assets |
|
17,646 |
|
|
|
17,730 |
|
|
|
17,974 |
|
|
|
17,688 |
|
|
|
18,014 |
|
| Average tangible common
equity |
$ |
208,881 |
|
|
$ |
201,892 |
|
|
$ |
175,542 |
|
|
$ |
205,387 |
|
|
$ |
172,082 |
|
| Net income to common
shareholders |
$ |
8,198 |
|
|
$ |
8,119 |
|
|
$ |
8,756 |
|
|
$ |
16,317 |
|
|
$ |
16,427 |
|
| Return on average
tangible common equity |
|
15.79 |
% |
|
|
16.17 |
% |
|
|
20.01 |
% |
|
|
15.98 |
% |
|
|
19.25 |
% |
| Average tangible common
equity |
$ |
208,881 |
|
|
$ |
201,892 |
|
|
$ |
175,542 |
|
|
$ |
205,387 |
|
|
$ |
172,082 |
|
| Core net income |
$ |
9,058 |
|
|
$ |
8,128 |
|
|
$ |
7,058 |
|
|
$ |
17,186 |
|
|
$ |
14,339 |
|
| Core return on average
tangible common equity |
|
17.44 |
% |
|
|
16.19 |
% |
|
|
16.13 |
% |
|
|
16.83 |
% |
|
|
16.80 |
% |
| |
|
|
|
|
|
|
|
|
|
| Net interest income |
$ |
21,579 |
|
|
$ |
20,839 |
|
|
$ |
19,432 |
|
|
$ |
42,418 |
|
|
$ |
38,978 |
|
| Add: Noninterest income |
|
1,368 |
|
|
|
1,268 |
|
|
|
6,862 |
|
|
|
2,636 |
|
|
|
8,648 |
|
| Less: Employee retention
related revenue |
|
— |
|
|
|
— |
|
|
|
5,100 |
|
|
|
— |
|
|
|
5,100 |
|
| Less: Net gain (loss) on
securities |
|
20 |
|
|
|
(12 |
) |
|
|
(45 |
) |
|
|
8 |
|
|
|
469 |
|
| Operating revenue |
$ |
22,927 |
|
|
$ |
22,119 |
|
|
$ |
21,239 |
|
|
$ |
45,046 |
|
|
$ |
42,057 |
|
| |
|
|
|
|
|
|
|
|
|
| Expenses: |
|
|
|
|
|
|
|
|
|
| Total noninterest expense |
$ |
11,411 |
|
|
$ |
10,375 |
|
|
$ |
13,432 |
|
|
$ |
21,786 |
|
|
$ |
23,590 |
|
| Less: One-time retirement
related expenses |
|
— |
|
|
|
— |
|
|
|
1,571 |
|
|
|
— |
|
|
|
1,571 |
|
| Less: Professional fees
related to ERC |
|
— |
|
|
|
— |
|
|
|
1,243 |
|
|
|
— |
|
|
|
1,243 |
|
| Less: Wire fraud loss |
|
1,155 |
|
|
|
— |
|
|
|
— |
|
|
|
1,155 |
|
|
|
— |
|
| Less: Net OREO (gain)
loss |
|
(3 |
) |
|
|
— |
|
|
|
7 |
|
|
|
(3 |
) |
|
|
7 |
|
| Adjusted noninterest
expenses |
$ |
10,259 |
|
|
$ |
10,375 |
|
|
$ |
10,611 |
|
|
$ |
20,634 |
|
|
$ |
20,769 |
|
| Core efficiency
ratio |
|
44.75 |
% |
|
|
46.90 |
% |
|
|
49.96 |
% |
|
|
45.81 |
% |
|
|
49.38 |
% |
Southern States Bancshares (NASDAQ:SSBK)
過去 株価チャート
から 6 2024 まで 7 2024
Southern States Bancshares (NASDAQ:SSBK)
過去 株価チャート
から 7 2023 まで 7 2024
