RALEIGH, N.C., May 08, 2019 (GLOBE NEWSWIRE) — West Town Bancorp, Inc. (OTC PINK: WTWB) (the “Company” or “West Town”), announced today its financial results for the three months ended March 31, 2019. Highlights include the following:
First quarter net income of $1,065,000 or $0.34 per diluted share, compared to $2,481,000 or $0.80 per diluted share for the first quarter of 2018.
- Return on average assets of 0.75%, compared to 1.88% for the first quarter of 2018.
- Return on average common equity of 5.48%, compared to 15.02% for the first quarter of 2018.
- Return on average tangible common equity (a non-GAAP financial measure) of 8.83%, compared to 18.30% for the first quarter of 2018.
- Net interest income increased 4% quarter over quarter.
- Windsor Advantage LLC (“Windsor”) revenue of $2.1 million as compared to $0.6 million for the same period last year, due primarily to West Town acquiring 100% of Windsor on April 30, 2018.
- Noninterest expenses increased $1.7 million as compared to the same period last year due to the impact of the Windsor consolidation, as well as increased compensation and legal fees related to the previously announced Sound Bank recapitalization transaction (“Recapitalization”), which was consummated on May 6, 2019.
Eric Bergevin, President and CEO commented, “The primary driver to the Company’s first quarter performance was the 35-day government shutdown effectively halting loan submission, approvals and sales for our government guaranteed lending (“GGL”) department and Windsor. Upon the government reopening there was still some delay in moving the pipeline forward due to the tremendous back log created, further impacting performance. As a result, our GGL revenue was $1.2 million for the quarter as compared to $3.3 million for the same period last year. Additionally, impacting the comparison performance to the prior year’s quarter was the unwinding of our “originate and hold” strategy that was implemented in the fourth quarter of 2017, which increased our sales in the secondary market in the first quarter of 2018 and as planned, at lower tax rates. These items are somewhat offset by the increased revenue from the acquisition of the remaining interest of Windsor as noted above. Heading into mid-2019, our GGL pipeline is robust and we anticipate originations and sales returning to annually budgeted targets by the end of year.”
Strong Year-Over-Year Loan Balance Sheet Growth
At March 31, 2019, the Company’s total assets were $590,819,000, net loans held for investment were $414,368,000, loans held for sale were $11,037,000, total deposits were $474,016,000 and total shareholder’s equity was $79,722,000. Compared with March 31, 2018, total assets increased $41,392,000 or 8%, loans held for investment increased $27,353,000 or 7%, loans held for sale decreased $50,249,000 or 82%, total deposits increased $88,744,000 or 23%, and total shareholders’ equity increased $11,754,000 or 17%. The decrease in loans held for sale was primarily due to the high level of held for sale inventory at March 31, 2018 as the Company began to unwind its “originate and hold” strategy initiated in the fourth quarter of 2017.
Noninterest-bearing deposits increased $41,874,000 or 48% year over year, while interest-bearing deposits increased $46,870,000 or 16% during the same time-period. The increase in noninterest-bearing deposits at March 31, 2019, is primarily related to an escrow account established at Sound Bank, which temporarily held investor funds in connection with the Recapitalization.
Acquired Loan Summary
The following table presents details of the Company’s acquired loan portfolio:
Dollars in thousands | 3/31/19 | 12/31/18 | 9/30/18 | 6/30/18 | 3/31/18 | ||||||||||
| Performing acquired loans | $ | 79,150 | $ | 85,600 | $ | 98,482 | $ | 107,404 | $ | 121,852 | |||||
| Less: remaining fair market value (FMV) adjustments | (840 | ) | (929 | ) | (1,063 | ) | (1,181 | ) | (1,400 | ) | |||||
| Performing acquired loans, net | $ | 78,310 | $ | 84,671 | $ | 97,419 | $ | 106,223 | $ | 120,452 | |||||
| FMV adjustment % | 1.1 | % | 1.1 | % | 1.1 | % | 1.1 | % | 1.1 | % | |||||
| Purchase credit impaired loans (PCI) | $ | 4,172 | $ | 4,398 | $ | 4,446 | $ | 5,017 | $ | 5,293 | |||||
| Less: remaining FMV adjustments | (504 | ) | (513 | ) | (554 | ) | (801 | ) | (826 | ) | |||||
| PCI loans, net | $ | 3,668 | $ | 3,885 | $ | 3,892 | $ | 4,216 | $ | 4,467 | |||||
| FMV adjustment % | 12.1 | % | 11.7 | % | 12.5 | % | 16.0 | % | 15.6 | % | |||||
| Total acquired performing loans | 78,310 | 84,671 | 97,419 | 106,223 | 120,452 | ||||||||||
| Total acquired PCI loans | 3,668 | 3,885 | 3,892 | 4,216 | 4,467 | ||||||||||
| Total acquired loans | 81,978 | 88,556 | 101,311 | 110,439 | 124,919 | ||||||||||
| FMV adjustment % | 1.6 | % | 1.6 | % | 1.6 | % | 1.8 | % | 1.8 | % |
In comparison to March 31, 2018, the performing acquired loan pool decreased $42,702,000 or 35% due to principal payments and renewals. The PCI loan pool decreased $1,121,000 or 21% year-over-year due to principal payments, charge-offs and foreclosures.
Capital Levels
At March 31, 2019, the capital ratios of both West Town Bank & Trust and Sound Bank exceeded the minimum thresholds established for well-capitalized banks by regulatory measures.
| “Well Capitalized” Minimums | West Town Bank & Trust | Sound Bank | ||||
| Tier 1 common equity ratio | 6.5 | % | 15.32 | % | 10.74 | % |
| Tier 1 risk-based capital ratio | 8.0 | % | 15.32 | % | 10.74 | % |
| Total risk-based capital ratio | 10.0 | % | 16.57 | % | 11.19 | % |
| Tier 1 leverage ratio | 5.0 | % | 12.19 | % | 8.33 | % |
The Company’s book value per common share increased from $23.02 at March 31, 2018 to $25.70 at March 31, 2019. The Company’s tangible book value per common share (a non-GAAP financial measure) decreased from $19.94 at March 31, 2018 to $16.17 at March 31, 2019 due to the impact of the Company’s acquisition of the remaining 56.5% of Windsor, which occurred on April 30, 2018. The tangible book value per common share increased from $14.96 at June 30, 2018 (post acquisition) to $16.17 at March 31, 2019. The impact of the Sound Bank Recapitalization, which closed on May 6, 2019 and subsequent to quarter end, is not reflected in the foregoing book value calculations.
Asset Quality
The Company’s nonperforming assets to total assets ratio increased 14 basis points from 1.26% at March 31, 2018 to 1.40% at March 31, 2019. Compared to the prior year, non-acquired nonaccrual loan balances declined $1,244,000 while foreclosed assets increased $2,493,000.
The Company recorded a $173,000 provision for loan losses during the first quarter of 2019 as compared to a provision of $469,000 in first quarter 2018. The Company recorded $58,000 in net charge-offs during the 2019 first quarter with the remaining provision expense due to volume growth.
| Dollars in thousands | Ending Balance | ||||||||||||||
| 3/31/19 | 12/31/18 | 9/30/18 | 6/30/18 | 3/31/18 | |||||||||||
| Nonaccrual loans – originated | $ | 4,666 | $ | 6,538 | $ | 5,806 | $ | 6,233 | $ | 5,910 | |||||
| Nonaccrual loans – acquired | 262 | 272 | 280 | 292 | 182 | ||||||||||
| Foreclosed assets – originated | 2,493 | 723 | 796 | 54 | 54 | ||||||||||
| 90 days past due – originated | 407 | 67 | 3 | 8 | 186 | ||||||||||
| 90 days past due – acquired | 421 | 251 | 280 | 553 | 594 | ||||||||||
| Total nonperforming assets | 8,249 | 7,851 | 7,165 | 7,140 | 6,926 | ||||||||||
| Total nonperforming assets – originated | 7,566 | 7,328 | 6,605 | 6,295 | 6,150 | ||||||||||
| Net charge-offs | $ | 58 | $ | 334 | $ | 725 | $ | 216 | $ | 105 | |||||
| Annualized net charge-offs to total average portfolio loans | 0.05 | % | 0.31 | % | 0.68 | % | 0.20 | % | 0.09 | % | |||||
| Ratio of total nonperforming assets to total assets | 1.40 | % | 1.41 | % | 1.30 | % | 1.31 | % | 1.26 | % | |||||
| Ratio of total nonperforming loans to total portfolio loans | 1.39 | % | 1.75 | % | 1.57 | % | 1.77 | % | 1.78 | % | |||||
| Ratio of total allowance for loan losses to total portfolio loans | 0.98 | % | 0.97 | % | 0.95 | % | 0.95 | % | 0.97 | % |
Net Interest Income and Margin
Net interest income for the three months ended March 31, 2019 increased $213,000 or 4% in comparison to the first quarter of 2018, while the net interest margin decreased from 4.26% for the first quarter of 2018 to 4.19% for the first quarter of 2019. The margin compression is largely related to the increase in the cost of funds from 1.01% to 1.46% due to increased deposit competition and short-term interest rates.
| Dollars in thousands | Three Months Ended | Year-to-Date | |||||||||||||
| 3/31/19 | 12/31/18 | 9/30/18 | 6/30/18 | 3/31/18 | 3/31/19 | 3/31/18 | |||||||||
| Quarterly average balances: | |||||||||||||||
| Loans | $ | 435,583 | $ | 424,758 | $ | 426,160 | $ | 435,778 | $ | 446,857 | $ | 435,583 | $ | 446,857 | |
| Investment securities | 21,119 | 21,060 | 15,377 | 13,949 | 11,353 | 21,119 | 11,353 | ||||||||
| Interest-bearing balances and other | 54,690 | 41,472 | 28,481 | 23,258 | 24,803 | 54,690 | 24,803 | ||||||||
| Total interest-earning assets | 511,392 | 487,290 | 470,018 | 472,985 | 483,013 | 511,392 | 483,013 | ||||||||
| Noninterest-bearing deposits | 112,836 | 96,068 | 90,073 | 82,971 | 82,849 | 112,836 | 82,849 | ||||||||
| Interest-bearing liabilities: | |||||||||||||||
| Interest-bearing deposits | 338,682 | 319,900 | 294,502 | 292,409 | 302,119 | 338,682 | 302,119 | ||||||||
| Borrowed funds | 37,852 | 50,792 | 63,356 | 78,457 | 76,422 | 37,852 | 76,422 | ||||||||
| Total interest-bearing liabilities | 376,534 | 370,692 | 357,858 | 370,866 | 378,541 | 376,534 | 378,541 | ||||||||
| Total assets | 576,640 | 553,855 | 536,172 | 538,249 | 536,185 | 576,640 | 536,185 | ||||||||
| Common shareholders’ equity | 78,698 | 77,817 | 77,129 | 73,725 | 67,013 | 78,698 | 67,013 | ||||||||
| Tangible common equity (1) | 48,918 | 47,695 | 46,667 | 49,882 | 57,799 | 48,918 | 57,799 |
(1) Non-GAAP financial measure. Tangible common equity is calculated by subtracting intangible assets from common shareholders’ equity.
| Dollars in thousands | Three Months Ended | Year-to-Date | ||||||||||||||||||||
| 3/31/19 | 12/31/18 | 9/30/18 | 6/30/18 | 3/31/18 | 3/31/19 | 3/31/18 | ||||||||||||||||
| Interest Income/Expense: | ||||||||||||||||||||||
| Loans | $ | 6,523 | $ | 6,379 | $ | 6,329 | $ | 6,577 | $ | 6,036 | $ | 6,523 | $ | 6,036 | ||||||||
| Investment securities | 167 | 171 | 111 | 105 | 64 | 167 | 64 | |||||||||||||||
| Interest-bearing balances and other | 356 | 248 | 170 | 126 | 120 | 356 | 120 | |||||||||||||||
| Total interest income | 7,046 | 6,798 | 6,610 | 6,808 | 6,220 | 7,046 | 6,220 | |||||||||||||||
| Deposits | 1,432 | 1,169 | 906 | 815 | 771 | 1,432 | 771 | |||||||||||||||
| Borrowings | 330 | 396 | 431 | 474 | 378 | 330 | 378 | |||||||||||||||
| Total interest expense | 1,762 | 1,565 | 1,337 | 1,289 | 1,149 | 1,762 | 1,149 | |||||||||||||||
| Net interest income | $ | 5,284 | $ | 5,233 | $ | 5,273 | $ | 5,519 | $ | 5,071 | $ | 5,284 | $ | 5,071 | ||||||||
| Average Yields and Costs: | ||||||||||||||||||||||
| Loans | 6.07 | % | 5.96 | % | 5.89 | % | 6.05 | % | 5.48 | % | 6.07 | % | 5.48 | % | ||||||||
| Investment securities | 3.16 | % | 3.25 | % | 2.89 | % | 3.01 | % | 2.25 | % | 3.16 | % | 2.25 | % | ||||||||
| Interest-bearing balances and other | 2.64 | % | 2.37 | % | 2.37 | % | 2.17 | % | 1.96 | % | 2.64 | % | 1.96 | % | ||||||||
| Total interest-earning assets | 5.59 | % | 5.53 | % | 5.58 | % | 5.77 | % | 5.22 | % | 5.59 | % | 5.22 | % | ||||||||
| Total interest-bearing deposits | 1.71 | % | 1.45 | % | 1.22 | % | 1.12 | % | 1.03 | % | 1.71 | % | 1.03 | % | ||||||||
| Borrowed funds | 3.54 | % | 3.09 | % | 2.70 | % | 2.42 | % | 2.01 | % | 3.54 | % | 2.01 | % | ||||||||
| Total interest-bearing liabilities | 1.90 | % | 1.67 | % | 1.48 | % | 1.39 | % | 1.23 | % | 1.90 | % | 1.23 | % | ||||||||
| Cost of funds | 1.46 | % | 1.33 | % | 1.18 | % | 1.14 | % | 1.01 | % | 1.46 | % | 1.01 | % | ||||||||
| Net interest margin | 4.19 | % | 4.26 | % | 4.45 | % | 4.68 | % | 4.26 | % | 4.19 | % | 4.26 | % |
Noninterest Income
Noninterest income for the three months ended March 31, 2019 was $3,805,000, a decrease of $716,000 or 16% as compared to the same prior year period. Specific items to note for the first quarter of 2019 include:
- Governmental lending revenue of $880,000 was a decrease of $2,174,000 or 71% in comparison to the first quarter of 2018 primarily due to the impact of the government shutdown as well as the partial unwinding in the first three months of 2018 of the originate-and-hold strategy instituted in the fourth quarter of 2017; and
- Windsor revenue totaled $2,086,000, an increase of $1,522,000 or 270% as compared to the $564,000 income earned from the investment in Windsor during the same prior year period. The increase is directly attributable to the Company’s acquisition of the remaining 56.5% of Windsor on April 30, 2018.
Noninterest Expense
Noninterest expense for the first quarter of 2019 was $7,454,000, an increase of $1,638,000 or 28% from $5,795,000 for the first quarter of 2018. The increases in compensation, occupancy, and other operating expenses are primarily related to the inclusion of Windsor expenses for the full three-month period in 2019 as compared to no expenses in the first quarter of 2018. Also impacting noninterest expenses for the quarter were increased compensation and legal fees related to the previously announced Sound Bank Recapitalization, which was consummated on May 6, 2019.
About West Town Bancorp, Inc.
West Town Bancorp, Inc. is the financial holding company for West Town Bank & Trust, an Illinois state-chartered bank. West Town Bank & Trust provides banking services through its two full-service offices located in the greater Chicago area. Primary deposit products are checking, savings, and certificate of deposit accounts, and primary lending products are government guaranteed lending, residential mortgage, commercial, and installment loans. The Company is also the parent company of Windsor Advantage, LLC, a loan servicing company, and West Town Insurance Agency, Inc., an insurance agency. The Company is registered with, and supervised by, the Federal Reserve. West Town Bank & Trust’s primary regulators are the Illinois Department of Financial and Professional Regulation and the FDIC.
For more information, visit https://www.westtownbank.com/
Important Note Regarding Forward-Looking Statements
This release contains certain forward-looking statements with respect to the financial condition, results of operations, and business of the Company. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of the Company and on the information available to management at the time this release was prepared. These statements can be identified by the use of words such as “expect,” “anticipate,” “estimate,” “believe,” variations of these words, and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause a difference include, among others: changes in the national and local economies or market conditions; changes in interest rates, deposit flows, loan demand, and asset quality, including real estate and other collateral values; changes in Small Business Administration rules, regulations, or loan products, including the section 7(a) program; changes in other government guaranteed loan programs or our ability to participate in such programs; changes in tax law, including the impact of such changes on our tax assets and liabilities; future governmental shutdowns that may impact revenues associated with our lending and other operations that are dependent on government guaranteed loan programs; changes in banking regulations and accounting principles, policies, or guidelines; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with the Company’s acquisition and divesture activities; the failure of our strategic investments or acquisitions to perform as anticipated and the impact of any impairments to our intangible assets, such as goodwill; the impact of our strategic initiatives on our ability to retain key employees, and the impact of competition from traditional or new sources. These, and other factors that may emerge, could cause decisions and actual results to differ materially from current expectations. The Company assumes no obligation to revise, update, or clarify forward-looking statements to reflect events or conditions after the date of this release.
Consolidated Balance Sheet
| Dollars in thousands; unaudited | Ending Balance | ||||||||||||||
| 3/31/19 | 12/31/18 | 9/30/18 | 6/30/18 | 3/31/18 | |||||||||||
| Assets | |||||||||||||||
| Cash and due from banks | $ | 5,433 | $ | 5,005 | $ | 5,292 | $ | 4,961 | $ | 4,725 | |||||
| Interest-bearing deposits | 72,382 | 43,448 | 38,779 | 27,532 | 30,299 | ||||||||||
| Total cash and cash equivalents | 77,815 | 48,453 | 44,071 | 32,493 | 35,024 | ||||||||||
| Securities available for sale, at fair value | 21,031 | 21,332 | 20,615 | 13,769 | 14,171 | ||||||||||
| Loans held for sale | 11,037 | 16,552 | 15,819 | 31,994 | 61,286 | ||||||||||
| Loans held for investment: | |||||||||||||||
| Originated loans | 336,505 | 322,038 | 307,166 | 294,471 | 265,887 | ||||||||||
| Acquired loans, net | 81,978 | 88,556 | 101,311 | 110,439 | 124,919 | ||||||||||
| Allowance for loan losses | (4,115 | ) | (4,000 | ) | (3,900 | ) | (3,835 | ) | (3,791 | ) | |||||
| Net loans held for investment | 414,368 | 406,594 | 404,577 | 401,075 | 387,015 | ||||||||||
| Premises and equipment, net | 12,099 | 12,166 | 12,263 | 11,586 | 11,502 | ||||||||||
| Foreclosed assets | 2,493 | 723 | 796 | 54 | 54 | ||||||||||
| Servicing assets | 3,619 | 3,952 | 4,280 | 4,598 | 4,969 | ||||||||||
| Bank owned life insurance | 9,090 | 9,034 | 8,977 | 8,917 | 8,853 | ||||||||||
| Accrued interest receivable | 1,637 | 1,637 | 1,758 | 1,776 | 1,870 | ||||||||||
| Goodwill | 19,737 | 19,745 | 19,745 | 19,745 | 7,016 | ||||||||||
| Other intangible assets, net | 9,827 | 10,157 | 10,493 | 10,837 | 2,102 | ||||||||||
| Other assets | 8,066 | 4,979 | 8,100 | 7,644 | 15,565 | ||||||||||
| Total assets | $ | 590,819 | $ | 555,324 | $ | 551,494 | $ | 544,488 | $ | 549,427 | |||||
| Liabilities and Shareholders’ Equity | |||||||||||||||
| Liabilities | |||||||||||||||
| Deposits: | |||||||||||||||
| Noninterest-bearing | $ | 128,435 | $ | 97,777 | $ | 94,829 | $ | 88,172 | $ | 86,561 | |||||
| Interest-bearing | 345,581 | 335,140 | 305,257 | 289,416 | 298,711 | ||||||||||
| Total deposits | 474,016 | 432,917 | 400,086 | 377,588 | 385,272 | ||||||||||
| Short term borrowings | 20,000 | 27,000 | 58,400 | 73,400 | 81,500 | ||||||||||
| Long term borrowings | 6,294 | 6,781 | 7,267 | 7,754 | 6,314 | ||||||||||
| Accrued interest payable | 927 | 868 | 550 | 466 | 389 | ||||||||||
| Other liabilities | 9,860 | 10,189 | 8,746 | 9,600 | 7,984 | ||||||||||
| Total liabilities | 511,097 | 477,755 | 475,049 | 468,808 | 481,459 | ||||||||||
| Shareholders’ equity | |||||||||||||||
| Preferred stock | 0 | 0 | 0 | 0 | 0 | ||||||||||
| Common stock, voting | 2,749 | 2,686 | 2,666 | 2,660 | 2,623 | ||||||||||
| Common stock, non-voting | 329 | 329 | 329 | 329 | 329 | ||||||||||
| Additional paid-in capital | 45,287 | 44,760 | 44,576 | 44,429 | 44,385 | ||||||||||
| Retained earnings | 31,273 | 29,928 | 29,154 | 28,436 | 20,765 | ||||||||||
| Accumulated other comprehensive income (loss) | 84 | (134 | ) | (280 | ) | (174 | ) | (134 | ) | ||||||
| Total shareholders’ equity | 79,722 | 77,569 | 76,445 | 75,680 | 67,968 | ||||||||||
| Total liabilities and shareholders’ equity | $ | 590,819 | $ | 555,324 | $ | 551,494 | $ | 544,488 | $ | 549,427 |
Financial Performance (Consolidated)
| Dollars in thousands, except per share data; unaudited | Three Months Ended | Year-to-Date | ||||||||||||||
| 3/31/19 | 12/31/18 | 9/30/18 | 6/30/18 | 3/31/18 | 3/31/19 | 3/31/18 | ||||||||||
| Interest income | ||||||||||||||||
| Interest and fees on loans | $ | 6,523 | $ | 6,379 | $ | 6,329 | $ | 6,577 | $ | 6,036 | $ | 6,523 | $ | 6,036 | ||
| Investment securities & deposits | 523 | 419 | 281 | 231 | 184 | 523 | 184 | |||||||||
| Total interest income | 7,046 | 6,798 | 6,610 | 6,808 | 6,220 | 7,046 | 6,220 | |||||||||
| Interest expense | ||||||||||||||||
| Interest on deposits | 1,432 | 1,169 | 906 | 815 | 771 | 1,432 | 771 | |||||||||
| Interest on borrowed funds | 330 | 396 | 431 | 474 | 378 | 330 | 378 | |||||||||
| Total interest expense | 1,762 | 1,565 | 1,337 | 1,289 | 1,149 | 1,762 | 1,149 | |||||||||
| Net interest income | 5,284 | 5,233 | 5,273 | 5,519 | 5,071 | 5,284 | 5,071 | |||||||||
| Provision for loan losses | 173 | 434 | 789 | 261 | 469 | 173 | 469 | |||||||||
| Noninterest income | ||||||||||||||||
| Government lending revenue | 880 | 1,793 | 1,121 | 4,241 | 3,054 | 880 | 3,054 | |||||||||
| Mortgage revenue | 435 | 359 | 491 | 868 | 455 | 435 | 455 | |||||||||
| Service charge revenue | 226 | 228 | 196 | 222 | 219 | 226 | 219 | |||||||||
| Bank owned life insurance income | 56 | 58 | 59 | 64 | 57 | 56 | 57 | |||||||||
| Windsor revenue | 2,086 | 2,116 | 1,791 | 1,683 | 0 | 2,086 | 0 | |||||||||
| Income from Windsor investment | 0 | 0 | 0 | 369 | 564 | 0 | 564 | |||||||||
| Loss on sale of securities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
| Gain on consolidation of Windsor | 0 | 0 | 0 | 4,776 | 0 | 0 | 0 | |||||||||
| Other noninterest income | 122 | 163 | 211 | 133 | 172 | 122 | 172 | |||||||||
| Total noninterest income | 3,805 | 4,717 | 3,869 | 12,356 | 4,521 | 3,805 | 4,521 | |||||||||
| Noninterest expense | ||||||||||||||||
| Compensation | 4,261 | 4,689 | 4,245 | 4,050 | 3,266 | 4,261 | 3,266 | |||||||||
| Occupancy and equipment | 506 | 536 | 522 | 462 | 413 | 506 | 413 | |||||||||
| Loan and special assets | 179 | 437 | 67 | 407 | 362 | 179 | 362 | |||||||||
| Professional services | 582 | 511 | 437 | 317 | 274 | 582 | 274 | |||||||||
| Data processing | 345 | 381 | 326 | 325 | 313 | 345 | 313 | |||||||||
| Communication | 226 | 208 | 191 | 203 | 235 | 226 | 235 | |||||||||
| Advertising | 112 | 135 | 147 | 418 | 54 | 112 | 54 | |||||||||
| Loss on sale of foreclosed assets | 21 | 0 | 0 | 41 | 0 | 21 | 0 | |||||||||
| Transaction-related expenses | 43 | 31 | 5 | 74 | 14 | 43 | 14 | |||||||||
| Other operating expense | 1,179 | 1,259 | 1,013 | 1,118 | 864 | 1,179 | 864 | |||||||||
| Total noninterest expense | 7,454 | 8,187 | 6,953 | 7,415 | 5,795 | 7,454 | 5,795 | |||||||||
| Income before income taxes | 1,462 | 1,329 | 1,400 | 10,199 | 3,328 | 1,462 | 3,328 | |||||||||
| Income tax expense | 397 | 373 | 372 | 2,528 | 847 | 397 | 847 | |||||||||
| Net income | $ | 1,065 | $ | 956 | $ | 1,028 | $ | 7,671 | $ | 2,481 | $ | 1,065 | $ | 2,481 | ||
| Basic earnings per common share | $ | 0.35 | $ | 0.31 | $ | 0.34 | $ | 2.58 | $ | 0.84 | $ | 0.35 | $ | 0.84 | ||
| Diluted earnings per common share | $ | 0.34 | $ | 0.30 | $ | 0.33 | $ | 2.47 | $ | 0.80 | $ | 0.34 | $ | 0.80 | ||
| Weighted average common shares outstanding | 3,054 | 3,008 | 2,996 | 2,980 | 2,952 | 3,054 | 2,952 | |||||||||
| Diluted average common shares outstanding | 3,115 | 3,124 | 3,127 | 3,115 | 3,087 | 3,115 | 3,087 |
Performance Ratios
| Three Months Ended | Year-to-Date | |||||||||||||||||||||
| 3/31/19 | 12/31/18 | 9/30/18 | 6/30/18 | 3/31/18 | 3/31/19 | 3/31/18 | ||||||||||||||||
| PER COMMON SHARE | ||||||||||||||||||||||
| Basic earnings per common share | $ | 0.35 | $ | 0.31 | $ | 0.34 | $ | 2.58 | $ | 0.84 | $ | 0.35 | $ | 0.84 | ||||||||
| Diluted earnings per common share | $ | 0.34 | $ | 0.30 | $ | 0.33 | $ | 2.47 | $ | 0.80 | $ | 0.34 | $ | 0.80 | ||||||||
| Book value per common share | $ | 25.70 | $ | 25.52 | $ | 25.31 | $ | 25.11 | $ | 23.02 | $ | 25.70 | $ | 23.02 | ||||||||
| Tangible book value per common share | $ | 16.17 | $ | 15.68 | $ | 15.30 | $ | 14.96 | $ | 19.94 | $ | 16.17 | $ | 19.94 | ||||||||
| FINANCIAL RATIOS (ANNUALIZED) | ||||||||||||||||||||||
| Return on average assets | 0.75 | % | 0.68 | % | 0.76 | % | 5.72 | % | 1.88 | % | 0.75 | % | 1.88 | % | ||||||||
| Return on average common shareholders’ equity | 5.48 | % | 4.87 | % | 5.29 | % | 41.73 | % | 15.02 | % | 5.48 | % | 15.02 | % | ||||||||
| Return on tangible common equity | 8.83 | % | 7.95 | % | 8.74 | % | 61.68 | % | 18.30 | % | 8.83 | % | 18.30 | % | ||||||||
| Net interest margin (FTE) | 4.19 | % | 4.26 | % | 4.45 | % | 4.68 | % | 4.26 | % | 4.19 | % | 4.26 | % | ||||||||
| Efficiency ratio(1) | 82.0 | % | 82.3 | % | 76.1 | % | 56.6 | % | 60.4 | % | 82.0 | % | 60.4 | % |
(1)Efficiency ratio is calculated by dividing noninterest expense by the sum of net interest income and noninterest income, less gains or losses on sale of securities or consolidation.
Contact: Eric Bergevin, 252-482-4400
