TINTON FALLS, N.J., April 25, 2017 (GLOBE NEWSWIRE) -- Two River Bancorp (Nasdaq:TRCB) (the "Company"), the parent company of Two River Community Bank ("the Bank"), today reported financial results for the first quarter ended March 31, 2017, highlighted by higher net income and earnings per diluted share along with solid loan and core deposit growth. All share and per share data for all referenced reporting periods have been adjusted for a 5% stock dividend paid on February 28, 2017.
Operating and Financial Highlights
- First quarter 2017 net income increased 6.4% to $1.80 million, or $0.21 per diluted share, up from $1.69 million, or $0.20 per diluted share, in the corresponding prior year’s quarter.
- Non-interest income for the quarter ended March 31, 2017 totaled $1.12 million, an increase of $232,000, or 26.0%, compared to the same period in 2016 as a result of higher mortgage banking revenue.
- Total loans as of March 31, 2017, net of unearned fees, increased $9.6 million, or 5.1% annualized, from December 31, 2016 to $762.7 million, predominantly due to growth in the commercial real estate sector.
- Total deposits as of March 31, 2017 were $799.7 million, an increase of $23.1 million from December 31, 2016, largely as a result of a new municipal relationship established in the first quarter of 2017.
- Tangible book value per share was $10.05 at March 31, 2017, compared to $9.88 at December 31, 2016, and $9.17 at March 31, 2016.
Management Commentary
William D. Moss, President and CEO, stated, “I am pleased to report that our financial results continue to trend in a positive direction, coupled with the expansion of our loan pipeline. Total loans increased 5.1% on an annualized basis despite the sale of $4.6 million of seasoned portfolio residential adjustable rate mortgages. The performance of our mortgage banking business continues to be a highlight, with revenues increasing by 99.0%, which included a $91,000 gain on the sale of such mortgage loans. In addition, Two River continues to achieve exceptionally strong asset quality, with non-performing loans at the lowest level in over a decade.”
Dividend Information
On April 19, 2017, the Company's Board of Directors declared a quarterly cash dividend of $0.04 per share, payable May 30, 2017 to shareholders of record as of May 12, 2017, which marks the 17th consecutive quarterly cash dividend paid by the Company to its shareholders.
Key Quarterly Performance Metrics
| 1st Qtr. 2017 | 4th Qtr. 2016 | 3rd Qtr. 2016 | 2nd Qtr. 2016 | 1st Qtr. 2016 | ||||||||||||
| Net Income (in thousands) | $ | 1,802 | $ | 2,567 | $ | 2,644 | $ | 1,727 | $ | 1,693 | ||||||
| Earnings per Common Share – Diluted | $ | 0.21 | $ | 0.30 | $ | 0.31 | $ | 0.20 | $ | 0.20 | ||||||
| Return on Average Assets | 0.76 | % | 1.08 | % | 1.16 | % | 0.78 | % | 0.78 | % | ||||||
| Return on Average Tangible Assets(1) | 0.77 | % | 1.10 | % | 1.19 | % | 0.80 | % | 0.80 | % | ||||||
| Return on Average Equity | 7.18 | % | 10.25 | % | 10.81 | % | 7.28 | % | 7.25 | % | ||||||
| Return on Average Tangible Equity(1) | 8.74 | % | 12.53 | % | 13.29 | % | 8.98 | % | 8.98 | % | ||||||
| Net Interest Margin | 3.45 | % | 3.43 | % | 3.55 | % | 3.57 | % | 3.57 | % | ||||||
| Non-Performing Assets to Total Assets | 0.18 | % | 0.19 | % | 0.20 | % | 0.22 | % | 0.22 | % | ||||||
| Allowance as a % of Loans | 1.25 | % | 1.27 | % | 1.25 | % | 1.30 | % | 1.27 | % | ||||||
| (1) Non-GAAP Financial Information. See “Reconciliation of Non-GAAP Financial Measures” at end of release. | ||||||||||||||||
Loan Composition
The components of the Company’s loan portfolio at March 31, 2017 and December 31, 2016 are as follows:
| (In Thousands) | ||||||||
| March 31, 2017 | December 31, 2016 | |||||||
| Commercial and industrial | $ | 94,757 | $ | 93,697 | ||||
| Real estate – construction | 109,066 | 111,914 | ||||||
| Real estate – commercial | 471,259 | 460,685 | ||||||
| Real estate – residential | 58,987 | 59,065 | ||||||
| Consumer | 29,190 | 28,279 | ||||||
| Unearned fees | (572 | ) | (548 | ) | ||||
| 762,687 | 753,092 | |||||||
| Allowance for loan losses | (9,567 | ) | (9,565 | ) | ||||
| Net Loans | $ | 753,120 | $ | 743,527 | ||||
Deposit Composition
The components of the Company’s deposits at March 31, 2017 and December 31, 2016 are as follows:
| (In Thousands) | ||||||||
| March 31, 2017 | December 31, 2016 | |||||||
| Non-interest bearing | $ | 156,283 | $ | 160,104 | ||||
| NOW accounts | 188,220 | 152,771 | ||||||
| Savings deposits | 258,327 | 261,438 | ||||||
| Money market deposits | 62,412 | 62,495 | ||||||
| Listed service CD’s | 44,674 | 47,648 | ||||||
| Time deposits / IRA | 56,893 | 56,489 | ||||||
| Wholesale deposits | 32,896 | 35,622 | ||||||
| Total Deposits | $ | 799,705 | $ | 776,567 | ||||
2017 First Quarter Financial Review
Net Income
Net income for the three months ended March 31, 2017 was $1.80 million, or $0.21 per diluted common share, as compared to $1.69 million, or $0.20 per diluted common share, for the same period last year, an increase of 6.4%. The increase was due primarily to higher net interest income and non-interest income, which was partially offset by a provision for loan losses compared to none in the prior year period along with higher non-interest expenses.
Net Interest Income
Net interest income for the quarter ended March 31, 2017 was $7.63 million, an increase of 7.0% compared to $7.13 million in the corresponding prior year period. This was largely due to an increase of $92.7 million, or 11.5%, in average interest earning assets, primarily driven from growth in the Company’s loan portfolio.
Net Interest Margin
The Company reported a net interest margin of 3.45% for the first quarter of 2017, compared to the 3.43% reported in the fourth quarter of 2016, and 3.57% reported for the first quarter of 2016. The net interest margin improvement of 2 basis points from the fourth quarter of 2016 was a result of slightly higher yielding interest-earning assets.
Non-Interest Income
Non-interest income for the quarter ended March 31, 2017 totaled $1.12 million, an increase of $232,000, or 26.0%, compared to the same period in 2016. This was largely the result of a $212,000, or 99.1%, increase in residential mortgage banking revenue, which included a $91,000 gain from the sale of $4.6 million of adjustable rate mortgages, coupled with higher earnings from bank owned life insurance and gains on the sale of SBA loans. These increases were partially offset by no net realized gain on sale of securities during the period compared to a gain of $72,000 in the prior year period.
Non-Interest Expense
Non-interest expense for the quarter ended March 31, 2017 totaled $5.78 million, an increase of $380,000, or 7.0%, compared to the same period in 2016, largely due to higher salaries and benefits resulting from both annual merit increases along with higher commission payouts on mortgage banking volume generated during the quarter. This was partially offset by lower loan workout expenses.
Provision / Allowance for Loan Losses
During the quarter, the Company reported a $225,000 provision for loan losses as a result of a partial charge-off representing 50% of a loan that was transferred to non-accrual status during the first quarter. This compared to no provision for loan losses in the prior year period. The Company had $223,000 in net loan charge-offs during the quarter, compared to $250,000 in net loan recoveries in the same period last year.
As of March 31, 2017, the Company's allowance for loan losses remained flat at $9.57 million compared to December 31, 2016. The loss allowance as a percentage of total loans was 1.25% at March 31, 2017 compared to 1.27% at December 31, 2016.
Financial Condition / Balance Sheet
At March 31, 2017, the Company maintained capital ratios that were in excess of regulatory standards for well-capitalized institutions. The Company's Tier 1 capital to average assets ratio was 8.96%, its common equity Tier 1 to risk weighted assets ratio was 10.31%, its Tier 1 capital to risk weighted assets ratio was 10.31%, and its total capital to risk weighted assets ratio was 12.70%.
Total assets as of March 31, 2017 were $967.1 million, compared to $940.2 million as of December 31, 2016.
Total loans as of March 31, 2017 were $762.7 million, compared to $753.1 million reported at December 31, 2016.
Total deposits as of March 31, 2017 were $799.7 million, compared to $776.6 million as of December 31, 2016. Core checking deposits at March 31, 2017 increased to $344.5 million, up $31.6 million, or 10.1%, from year-end, primarily due to a new municipal relationship. The Company continues to focus on building core checking account deposit relationships.
Asset Quality
The Company's non-performing assets at March 31, 2017 decreased to $1.77 million as compared to $1.81 million at December 31, 2016 and $1.98 million at March 31, 2016. Non-performing assets to total assets at March 31, 2017 declined to 0.18%, compared to 0.19% at December 31, 2016, and 0.22% at March 31, 2016.
Non-accrual loans decreased to $1.51 million at March 31, 2017, compared to $1.55 million at December 31, 2016 and $1.72 million at March 31, 2016. OREO was $259,000 at March 31, 2017, unchanged from December 31, 2016 and March 31, 2016.
Troubled debt restructured loan balances amounted to $8.16 million at March 31, 2017, with all but $405,000 performing. This compared to $8.23 million at December 31, 2016 and $9.08 million at March 31, 2016.
About the Company
Two River Bancorp is the holding company for Two River Community Bank, which is headquartered in Tinton Falls, New Jersey. Two River Community Bank operates 15 branches along with two Loan Production Offices throughout Monmouth, Middlesex, Union, and Ocean Counties, New Jersey. More information about Two River Community Bank and Two River Bancorp is available at www.tworiverbank.com.
The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management's confidence and strategies and management's current views and expectations about new and existing programs and products, relationships, opportunities, technology and market conditions. These statements may be identified by such forward-looking terminology as "continue," "expect," "look," "believe," "anticipate," "may," "will," "should," "projects," "strategy" or similar statements. Actual results may differ materially from such forward-looking statements, and no reliance should be placed on any forward-looking statement. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to, unanticipated changes in the financial markets and the direction of interest rates; volatility in earnings due to certain financial assets and liabilities held at fair value; competition levels; loan and investment prepayments differing from our assumptions; insufficient allowance for credit losses; a higher level of loan charge-offs and delinquencies than anticipated; material adverse changes in our operations or earnings; a decline in the economy in our market areas; changes in relationships with major customers; changes in effective income tax rates; higher or lower cash flow levels than anticipated; inability to hire or retain qualified employees; a decline in the levels of deposits or loss of alternate funding sources; a decrease in loan origination volume or an inability to close loans currently in the pipeline; changes in laws and regulations; adoption, interpretation and implementation of accounting pronouncements; operational risks, including the risk of fraud by employees, customers or outsiders; and the inability to successfully implement or expand new lines of business or new products and services. For a list of other factors which would affect our results, see the Company's filings with the Securities and Exchange Commission, including those risk factors identified in the "Risk Factor" section and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2016. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company assumes no obligation for updating any such forward-looking statements at any time, except as required by law.
| TWO RIVER BANCORP CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) For the Three Months Ended March 31, 2017 and 2016 (in thousands, except per share data) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2017 | 2016 | |||||||
| INTEREST INCOME: | ||||||||
| Loans, including fees | $ | 8,403 | $ | 7,913 | ||||
| Securities: | ||||||||
| Taxable | 233 | 192 | ||||||
| Tax-exempt | 285 | 200 | ||||||
| Interest-bearing deposits | 72 | 33 | ||||||
| Total Interest Income | 8,993 | 8,338 | ||||||
| INTEREST EXPENSE: | ||||||||
| Deposits | 1,038 | 883 | ||||||
| Securities sold under agreements to repurchase | 15 | 14 | ||||||
| Federal Home Loan Bank (“FHLB”) and other borrowings | 145 | 148 | ||||||
| Subordinated debt | 165 | 165 | ||||||
| Total Interest Expense | 1,363 | 1,210 | ||||||
| Net Interest Income | 7,630 | 7,128 | ||||||
| PROVISION FOR LOAN LOSSES | 225 | - | ||||||
| Net Interest Income after Provision for Loan Losses | 7,405 | 7,128 | ||||||
| NON-INTEREST INCOME: | ||||||||
| Service fees on deposit accounts | 150 | 136 | ||||||
| Mortgage banking | 426 | 214 | ||||||
| Other loan fees | 92 | 81 | ||||||
| Earnings from investment in bank owned life insurance | 136 | 109 | ||||||
| Gain on sale of SBA loans | 117 | 94 | ||||||
| Net realized gain on sale of securities | - | 72 | ||||||
| Other income | 204 | 187 | ||||||
| Total Non-Interest Income | 1,125 | 893 | ||||||
| NON-INTEREST EXPENSES: | ||||||||
| Salaries and employee benefits | 3,453 | 3,105 | ||||||
| Occupancy and equipment | 1,054 | 995 | ||||||
| Professional | 341 | 335 | ||||||
| Insurance | 48 | 47 | ||||||
| FDIC insurance and assessments | 123 | 105 | ||||||
| Advertising | 110 | 110 | ||||||
| Data processing | 130 | 135 | ||||||
| Outside services fees | 103 | 123 | ||||||
| Amortization of identifiable intangibles | - | 10 | ||||||
| OREO expenses, impairment and sales, net | (3 | ) | 19 | |||||
| Loan workout expenses | 27 | 80 | ||||||
| Other operating | 391 | 333 | ||||||
| Total Non-Interest Expenses | 5,777 | 5,397 | ||||||
| Income before Income Taxes | 2,753 | 2,624 | ||||||
| INCOME TAX EXPENSE | 951 | 931 | ||||||
| Net Income | 1,802 | 1,693 | ||||||
| EARNINGS PER COMMON SHARE: | ||||||||
| Basic | $ | 0.22 | $ | 0.20 | ||||
| Diluted | $ | 0.21 | $ | 0.20 | ||||
| Weighted average common shares outstanding: | ||||||||
| Basic | 8,341 | 8,314 | ||||||
| Diluted | 8,618 | 8,493 | ||||||
| TWO RIVER BANCORP CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share data) | ||||||
| March 31, | December 31, | |||||
| 2017 | 2016 | |||||
| ASSETS | ||||||
| Cash and due from banks | $ | 21,266 | $ | 19,844 | ||
| Interest-bearing deposits in bank | 40,395 | 22,233 | ||||
| Cash and cash equivalents | 61,661 | 42,077 | ||||
| Securities available for sale | 32,797 | 34,464 | ||||
| Securities held to maturity | 57,067 | 57,843 | ||||
| Restricted investments, at cost | 4,986 | 4,805 | ||||
| Loans held for sale | 3,763 | 4,537 | ||||
| Loans | 762,687 | 753,092 | ||||
| Allowance for loan losses | (9,567 | ) | (9,565 | ) | ||
| Net loans | 753,120 | 743,527 | ||||
| OREO | 259 | 259 | ||||
| Bank owned life insurance | 21,165 | 21,029 | ||||
| Premises and equipment, net | 5,327 | 4,662 | ||||
| Accrued interest receivable | 2,090 | 2,234 | ||||
| Goodwill | 18,109 | 18,109 | ||||
| Other assets | 6,729 | 6,665 | ||||
| TOTAL ASSETS | $ | 967,073 | $ | 940,211 | ||
| LIABILITIES | ||||||
| Deposits: | ||||||
| Non-interest bearing | $ | 156,284 | $ | 160,104 | ||
| Interest-bearing | 643,421 | 616,463 | ||||
| Total Deposits | 799,705 | 776,567 | ||||
| Securities sold under agreements to repurchase | 21,437 | 19,915 | ||||
| FHLB and other borrowings | 24,300 | 25,300 | ||||
| Subordinated debt | 9,863 | 9,855 | ||||
| Accrued interest payable | 98 | 100 | ||||
| Other liabilities | 9,264 | 7,758 | ||||
| Total Liabilities | 864,667 | 839,495 | ||||
| SHAREHOLDERS' EQUITY | ||||||
| Preferred stock, no par value; 6,500,000 shares authorized, no shares issued and outstanding | - | - | ||||
| Common stock, no par value; 25,000,000 shares authorized; | ||||||
| Issued – 8,701,461 and 8,677,536 at March 31, 2017 and December 31, 2016, respectively | ||||||
| Outstanding – 8,389,367 and 8,365,442 at March 31, 2017 and December 31, 2016, respectively | 79,194 | 79,056 | ||||
| Retained earnings | 25,930 | 24,447 | ||||
| Treasury stock, at cost; 312,094 shares at March 31, 2017 and December 31, 2016 | (2,396 | ) | (2,396 | ) | ||
| Accumulated other comprehensive loss | (322 | ) | (391 | ) | ||
| Total Shareholders' Equity | 102,406 | 100,716 | ||||
| TOTAL LIABILITIES and SHAREHOLDERS’ EQUITY | $ | 967,073 | $ | 940,211 | ||
| TWO RIVER BANCORP Selected Consolidated Financial Data | |||||||||
| Selected Consolidated Earnings Data | |||||||||
| (in thousands, except per share data) | |||||||||
| Three Months Ended | |||||||||
| March 31, | Dec. 31, | March 31, | |||||||
| Selected Consolidated Earnings Data: | 2017 | 2016 | 2016 | ||||||
| Total Interest Income | $ | 8,993 | $ | 8,970 | $ | 8,338 | |||
| Total Interest Expense | 1,363 | 1,376 | 1,210 | ||||||
| Net Interest Income | 7,630 | 7,594 | 7,128 | ||||||
| Provision for (Recovery of) Loan Losses | 225 | (345 | ) | - | |||||
| Net Interest Income after Provision for (Recovery of) Loan Losses | 7,405 | 7,939 | 7,128 | ||||||
| Other Non-Interest Income | 1,125 | 1,447 | 893 | ||||||
| Other Non-Interest Expenses | 5,777 | 5,360 | 5,397 | ||||||
| Income before Income Taxes | 2,753 | 4,026 | 2,624 | ||||||
| Income Tax Expense | 951 | 1,459 | 931 | ||||||
| Net Income | 1,802 | 2,567 | 1,693 | ||||||
| Per Common Share Data: | |||||||||
| Basic Earnings | $ | 0.22 | $ | 0.31 | $ | 0.20 | |||
| Diluted Earnings | $ | 0.21 | $ | 0.30 | $ | 0.20 | |||
| Book Value | $ | 12.21 | $ | 12.04 | $ | 11.34 | |||
| Tangible Book Value(1) | $ | 10.05 | $ | 9.88 | $ | 9.17 | |||
| Average Common Shares Outstanding (in thousands): | |||||||||
| Basic | 8,341 | 8,322 | 8,314 | ||||||
| Diluted | 8,618 | 8,565 | 8,493 | ||||||
| (1) Non-GAAP Financial Information. See “Reconciliation of Non-GAAP Financial Measures” at end of release. | |||||||||
| Selected Period End Balances | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| March 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | ||||||||||||
| 2017 | 2016 | 2016 | 2016 | 2016 | ||||||||||||
| Total Assets | $ | 967,073 | $ | 940,211 | $ | 909,170 | $ | 884,700 | $ | 881,857 | ||||||
| Investment Securities and Restricted Stock | 94,850 | 97,112 | 82,677 | 84,246 | 83,376 | |||||||||||
| Total Loans | 762,687 | 753,092 | 753,982 | 726,414 | 704,401 | |||||||||||
| Allowance for Loan Losses | (9,567 | ) | (9,565 | ) | (9,452 | ) | (9,418 | ) | (8,963 | ) | ||||||
| Goodwill and Other Intangible Assets | 18,109 | 18,109 | 18,109 | 18,109 | 18,109 | |||||||||||
| Total Deposits | 799,705 | 776,567 | 739,247 | 726,264 | 727,104 | |||||||||||
| Repurchase Agreements | 21,437 | 19,915 | 18,645 | 21,683 | 20,132 | |||||||||||
| FHLB and Other Borrowings | 24,300 | 25,300 | 35,300 | 23,800 | 23,800 | |||||||||||
| Subordinated Debt | 9,863 | 9,855 | 9,847 | 9,839 | 9,831 | |||||||||||
| Shareholders' Equity | 102,406 | 100,716 | 98,594 | 96,293 | 94,613 | |||||||||||
| Asset Quality Data (by Quarter) | ||||||||||||||||
| (dollars in thousands) | ||||||||||||||||
| March 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | ||||||||||||
| 2017 | 2016 | 2016 | 2016 | 2016 | ||||||||||||
| Nonaccrual Loans | $ | 1,511 | $ | 1,548 | $ | 1,587 | $ | 1,697 | $ | 1,723 | ||||||
| OREO | 259 | 259 | 259 | 259 | 259 | |||||||||||
| Total Non-Performing Assets | 1,770 | 1,807 | 1,846 | 1,956 | 1,982 | |||||||||||
| Troubled Debt Restructured Loans: | ||||||||||||||||
| Performing | 7,754 | 8,075 | 8,366 | 8,492 | 8,920 | |||||||||||
| Non-Performing | 405 | 157 | 157 | 158 | 161 | |||||||||||
| Non-Performing Loans to Total Loans | 0.20 | % | 0.21 | % | 0.21 | % | 0.23 | % | 0.24 | % | ||||||
| Non-Performing Assets to Total Assets | 0.18 | % | 0.19 | % | 0.20 | % | 0.22 | % | 0.22 | % | ||||||
| Allowance as a % of Loans | 1.25 | % | 1.27 | % | 1.25 | % | 1.30 | % | 1.27 | % | ||||||
| Capital Ratios | ||||||||||||||||
| March 31, 2017 | December 31, 2016 | |||||||||||||||
| CET 1 Capital to Risk Weighted Assets Ratio | Tier 1 Capital to Average Assets Ratio | Tier 1 Capital to Risk Weighted Assets Ratio | Total Capital to Risk Weighted Assets Ratio | CET 1 Capital to Risk Weighted Assets Ratio | Tier 1 Capital to Average Assets Ratio | Tier 1 Capital to Risk Weighted Assets Ratio | Total Capital to Risk Weighted Assets Ratio | |||||||||
| Two River Bancorp | 10.31 | % | 8.96 | % | 10.31 | % | 12.70 | % | 10.33 | % | 8.94 | % | 10.33 | % | 12.76 | % |
| Two River Community Bank | 11.44 | % | 9.94 | % | 11.44 | % | 12.61 | % | 11.49 | % | 9.95 | % | 11.49 | % | 12.68 | % |
| "Well capitalized" institution (under prompt corrective action regulations)* | 6.50 | % | 5.00 | % | 8.00 | % | 10.00 | % | 6.50 | % | 5.00 | % | 8.00 | % | 10.00 | % |
| *Applies to Bank only. For the Company to be “well-capitalized,” the Tier 1 Capital to Risk Weighted Assets has to be at least 6.00%. | ||||||||||||||||
| Consolidated Average Balance Sheets & Yields | ||||||||||||||||||
| With Resultant Interest and Average Rates | ||||||||||||||||||
| Three Months Ended | Three Months Ended | |||||||||||||||||
| (dollars in thousands) | March 31, 2017 | March 31, 2016 | ||||||||||||||||
| Interest / Income Expense | Interest / Income Expense | |||||||||||||||||
| ASSETS | Average Balance | Average Yield / Rate | Average Balance | Average Yield / Rate | ||||||||||||||
| Interest Earning Assets: | ||||||||||||||||||
| Interest-bearing due from banks | $ | 38,263 | $ | 72 | 0.76 | % | $ | 29,721 | $ | 33 | 0.45 | % | ||||||
| Investment securities | 96,030 | 518 | 2.16 | % | 79,169 | 392 | 1.98 | % | ||||||||||
| Loans, net of unearned fees(1) (2) | 762,150 | 8,403 | 4.47 | % | 694,814 | 7,913 | 4.58 | % | ||||||||||
| Total Interest-Earning Assets | 896,443 | 8,993 | 4.07 | % | 803,704 | 8,338 | 4.17 | % | ||||||||||
| Non-Interest-Earning Assets: | ||||||||||||||||||
| Allowance for loan losses | (9,645 | ) | (8,795 | ) | ||||||||||||||
| All other assets | 75,551 | 75,505 | ||||||||||||||||
| Total Assets | $ | 962,349 | $ | 870,414 | ||||||||||||||
| LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||||||||||||
| Interest-Bearing Liabilities: | ||||||||||||||||||
| NOW deposits | $ | 191,903 | 212 | 0.45 | % | $ | 150,629 | 151 | 0.40 | % | ||||||||
| Savings deposits | 256,499 | 327 | 0.52 | % | 225,197 | 274 | 0.49 | % | ||||||||||
| Money market deposits | 61,668 | 26 | 0.17 | % | 73,860 | 30 | 0.16 | % | ||||||||||
| Time deposits | 136,474 | 473 | 1.41 | % | 123,433 | 428 | 1.39 | % | ||||||||||
| Securities sold under agreements to repurchase | 19,376 | 15 | 0.31 | % | 17,700 | 14 | 0.32 | % | ||||||||||
| FHLB and other borrowings | 24,447 | 145 | 2.41 | % | 24,166 | 148 | 2.46 | % | ||||||||||
| Subordinated debt | 9,860 | 165 | 6.69 | % | 9,827 | 165 | 6.72 | % | ||||||||||
| Total Interest-Bearing Liabilities | 700,227 | 1,363 | 0.79 | % | 624,812 | 1,210 | 0.78 | % | ||||||||||
| Non-Interest-Bearing Liabilities: | ||||||||||||||||||
| Demand deposits | 153,185 | 144,420 | ||||||||||||||||
| Other liabilities | 7,185 | 7,209 | ||||||||||||||||
| Total Non-Interest-Bearing Liabilities | 160,370 | 151,629 | ||||||||||||||||
| Shareholders’ Equity | 101,752 | 93,973 | ||||||||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 962,349 | $ | 870,414 | ||||||||||||||
| NET INTEREST INCOME | $ | 7,630 | $ | 7,128 | ||||||||||||||
| NET INTEREST SPREAD(3) | 3.28 | % | 3.39 | % | ||||||||||||||
| NET INTEREST MARGIN(4) | 3.45 | % | 3.57 | % | ||||||||||||||
| (1) Included in interest income on loans are loan fees. | ||||||||||||||||||
| (2) Includes non-performing loans. | ||||||||||||||||||
| (3) The interest rate spread is the difference between the weighted average yield on average interest earning and the weighted average cost of average interest bearing liabilities. | ||||||||||||||||||
| (4) The interest rate margin is calculated by dividing annualized net interest income by average interest earning assets. | ||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures |
| The press release contains certain financial information determined by methods other than in accordance with generally accepted accounting policies in the United States (GAAP). These non-GAAP financial measures are "book value per common share," "tangible book value per common share," "return on average tangible assets," and "return on average tangible equity." This non-GAAP disclosure has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. Our management uses these non-GAAP measures in its analysis of our performance because it believes these measures are material and will be used as a measure of our performance by investors. |
| (In thousands, except per share data) |
| As of and for the Three Months Ended | |||||||||||||||||||||
| March 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | |||||||||||||||||
| 2017 | 2016 | 2016 | 2016 | 2016 | |||||||||||||||||
| Common shareholders' equity | $ | 102,406 | $ | 100,716 | $ | 98,594 | $ | 96,293 | $ | 94,613 | |||||||||||
| Less: goodwill and other intangibles | (18,109 | ) | (18,109 | ) | (18,109 | ) | (18,109 | ) | (18,109 | ) | |||||||||||
| Tangible common shareholders’ equity | $ | 84,297 | $ | 82,607 | $ | 80,485 | $ | 78,184 | $ | 76,504 | |||||||||||
| Common shares outstanding | 8,389 | 8,365 | 8,358 | 8,366 | 8,341 | ||||||||||||||||
| Book value per common share | $ | 12.21 | $ | 12.04 | $ | 11.80 | $ | 11.51 | $ | 11.34 | |||||||||||
| Book value per common share | $ | 12.21 | $ | 12.04 | $ | 11.80 | $ | 11.51 | $ | 11.34 | |||||||||||
| Effect of intangible assets | (2.16 | ) | (2.16 | ) | (2.17 | ) | (2.16 | ) | (2.17 | ) | |||||||||||
| Tangible book value per common share | $ | 10.05 | $ | 9.88 | $ | 9.63 | $ | 9.35 | $ | 9.17 | |||||||||||
| Return on average assets | 0.76 | % | 1.08 | % | 1.16 | % | 0.78 | % | 0.78 | % | |||||||||||
| Effect of average intangible assets | 0.01 | % | 0.02 | % | 0.03 | % | 0.02 | % | 0.02 | % | |||||||||||
| Return on average tangible assets | 0.77 | % | 1.10 | % | 1.19 | % | 0.80 | % | 0.80 | % | |||||||||||
| Return on average equity | 7.18 | % | 10.25 | % | 10.81 | % | 7.28 | % | 7.25 | % | |||||||||||
| Effect of average intangible assets | 1.56 | % | 2.28 | % | 2.48 | % | 1.70 | % | 1.73 | % | |||||||||||
| Return on average tangible equity | 8.74 | % | 12.53 | % | 13.29 | % | 8.98 | % | 8.98 | % | |||||||||||