RALEIGH, N.C., Feb. 11, 2019 (GLOBE NEWSWIRE) — West Town Bancorp, Inc. (OTC PINK: WTWB) (the “Company” or “West Town”), the multi-bank financial holding company for West Town Bank & Trust and Sound Bank, announced today its financial results for the year ended December 31, 2018. Highlights for the fourth quarter of 2018 and the Company’s year-to-date performance include the following:
Fourth quarter net income of $956,000 or $0.30 per diluted share, compared to $552,000 or $0.20 per diluted share for the fourth quarter of 2017.
- Return on average assets of 0.68%, compared to 0.44% for the fourth quarter of 2017.
- Return on average common equity of 4.87%, compared 3.62% for the fourth quarter of 2017.
- Return on average tangible common equity (a non-GAAP financial measure) of 7.95%, compared to 4.31% for the fourth quarter of 2017.
For the year ending December 31, 2018, net income of $12,136,000 or $3.90 per diluted share, compared to $2,892,000 or $1.54 per diluted share for the year ending December 31, 2017.
- Return on average assets of 2.24%, compared to 0.83% for the prior year period.
- Return on average common equity of 16.41%, compared to 7.27% for the prior year period.
- Return on tangible common equity of 24.05% compared to 10.58% for the prior year period.
Eric Bergevin, President and CEO commented, “The Company’s record earnings in 2018 was the result of execution on our strategic initiatives deployed over the past two years, including the acquisition of Windsor Advantage LLC (“Windsor”) and the expansion of our governmental guaranteed loan (“GGL”) department. As discussed in our second quarter press release, we recorded a gain of $4,776,000 on completion of the Windsor acquisition on April 30, 2018 and earned $2.0 million in net income from operations in the remaining 8 months of 2018 (not including the $933,000 in noninterest income earned prior to the acquisition date). We earned $10.2 million in GGL revenue, a record year for the Company in large part to the ‘originate and hold’ strategy that was put in place during the 4th quarter of 2017 that helped us better leverage our capital and enhance earnings. Additionally, we are quite pleased with the $40.2 million growth in total deposits from the prior year-end, with noninterest-bearing deposit balances accounting for $13.6 million of that total increase. Heading into 2019, the management team is focused on the continued growth of shareholder value.”
Strong Year-Over-Year Loan Balance Sheet Growth
At December 31, 2018, the Company’s total assets were $555,324,000, net loans held for investment were $406,594,000, loans held for sale were $16,552,000, total deposits were $432,917,000 and total shareholder’s equity was $77,570,000. Compared with December 31, 2017, total assets increased $11,190,000 or 2%, loans held for investment increased $31,469,000 or 8%, loans held for sale decreased $50,154,000 or 75%, total deposits increased $40,183,000 or 10% and total shareholders’ equity increased $11,990,000 or 18%. The decrease in loans held for sale was due to the ‘originate and hold’ strategy in the 4th quarter of 2017 that resulted in a large held for sale inventory at year-end.
Noninterest-bearing deposits increased $13,599,000 or 16% year over year, while interest-bearing deposits increased $26,584,000 or 9% during the same time period.
Acquired Loan Summary
The following table presents details of the Company’s acquired loan portfolio:
| Dollars in thousands | 12/31/18 | 9/30/18 | 6/30/18 | 3/31/18 | 12/31/17 | ||||||||||
| Performing acquired loans | $ | 85,600 | $ | 98,482 | $ | 107,404 | $ | 121,852 | $ | 132,846 | |||||
| Less: remaining fair market value (FMV) adjustments | (929 | ) | (1,063 | ) | (1,181 | ) | (1,400 | ) | (1,592 | ) | |||||
| Performing acquired loans, net | $ | 84,671 | $ | 97,419 | $ | 106,223 | $ | 120,452 | $ | 131,254 | |||||
| FMV adjustment % | 1.1 | % | 1.1 | % | 1.1 | % | 1.1 | % | 1.2 | % | |||||
| Purchase credit impaired loans (PCI) | $ | 4,398 | $ | 4,446 | $ | 5,017 | $ | 5,293 | $ | 5,386 | |||||
| Less: remaining FMV adjustments | (513 | ) | (554 | ) | (801 | ) | (826 | ) | (832 | ) | |||||
| PCI loans, net | $ | 3,885 | $ | 3,892 | $ | 4,216 | $ | 4,467 | $ | 4,554 | |||||
| FMV adjustment % | 11.7 | % | 12.5 | % | 16.0 | % | 15.6 | % | 15.4 | % | |||||
| Total acquired performing loans | 84,671 | 97,419 | 106,223 | 120,452 | 131,254 | ||||||||||
| Total acquired PCI loans | 3,885 | 3,892 | 4,216 | 4,467 | 4,554 | ||||||||||
| Total acquired loans | 88,556 | 101,311 | 110,439 | 124,919 | 135,808 | ||||||||||
| FMV adjustment % | 1.6 | % | 1.6 | % | 1.8 | % | 1.8 | % | 1.8 | % | |||||
In comparison to December 31, 2017, the performing acquired loan pool decreased $47,246,000 or 36% due to principal payments and renewals. The PCI loan pool decreased $988,000 or 18% year-over-year due to principal payments, charge-offs and foreclosures.
Capital Levels
At December 31, 2018, both banks’ capital ratios 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 | % | 15.12 | % | 11.07 | % |
| Tier 1 risk-based capital ratio | 8.0 | % | 15.12 | % | 11.07 | % |
| Total risk-based capital ratio | 10.0 | % | 16.37 | % | 11.55 | % |
| Tier 1 leverage ratio | 5.0 | % | 11.40 | % | 9.42 | % |
The book value per common share increased from $22.21 at December 31, 2017 to $25.52 at December 31, 2018. The tangible book value per common share (a non-GAAP financial measure) decreased from $19.07 at December 31, 2017 to $15.68 at December 31, 2018 due to 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 $15.68 at December 31, 2018.
Asset Quality
The Company’s nonperforming assets to total assets ratio increased 6 basis points from 1.35% at December 31, 2017 to 1.41% at December 31, 2018. Compared to the prior year, non-acquired nonaccrual loan balances grew $320,000 or 5%.
The Company recorded a $434,000 provision for loan losses during the fourth quarter of 2018, as compared to a provision of $1,129,000 in fourth quarter 2017. The Company recorded $334,000 in net charge-offs during the 2018 fourth quarter with the remaining provision expense due to volume growth.
| Dollars in thousands | Ending Balance | ||||||||||||||
| 12/31/18 | 9/30/18 | 6/30/18 | 3/31/18 | 12/31/17 | |||||||||||
| Nonaccrual loans – originated | $ | 6,538 | $ | 5,806 | $ | 6,233 | $ | 5,910 | $ | 6,218 | |||||
| Nonaccrual loans – acquired | 272 | 280 | 292 | 182 | 413 | ||||||||||
| OREO – originated | 723 | 796 | 54 | 54 | 0 | ||||||||||
| 90 days past due – originated | 67 | 3 | 8 | 186 | 0 | ||||||||||
| 90 days past due – acquired | 251 | 280 | 553 | 594 | 697 | ||||||||||
| Total nonperforming assets | 7,851 | 7,165 | 7,140 | 6,926 | 7,328 | ||||||||||
| Total nonperforming assets – originated | 7,328 | 6,605 | 6,295 | 6,150 | 6,218 | ||||||||||
| Net charge-offs | $ | 334 | $ | 725 | $ | 216 | $ | 105 | $ | 543 | |||||
| Annualized net charge-offs to total average portfolio loans | 0.31 | % | 0.68 | % | 0.20 | % | 0.09 | % | 0.54 | % | |||||
| Ratio of total nonperforming assets to total assets | 1.41 | % | 1.30 | % | 1.31 | % | 1.26 | % | 1.35 | % | |||||
| Ratio of total nonperforming loans to total portfolio loans | 1.75 | % | 1.57 | % | 1.77 | % | 1.78 | % | 1.95 | % | |||||
| Ratio of total allowance for loan losses to total portfolio loans | 0.97 | % | 0.95 | % | 0.95 | % | 0.97 | % | 0.91 | % | |||||
Net Interest Income and Margin
Net interest income for the three months ended December 31, 2018 decreased $1,000 in comparison to the fourth quarter of 2017, while the net interest margin decreased from 4.66% for the fourth quarter of 2017 to 4.26% for the fourth quarter of 2018. The margin compression is largely related to the increase in the cost of funds from 0.93% to 1.33% due to increased deposit competition and interest rates.
(Includes Sound Bank as of 9/1/2017)
| Dollars in thousands | Three Months Ended | Twelve Months Ended | |||||||||||||
| 12/31/18 | 9/30/18 | 6/30/18 | 3/31/18 | 12/31/17 | 12/31/18 | 12/31/17 | |||||||||
| Quarterly average balances: | |||||||||||||||
| Loans | $ | 424,758 | $ | 426,160 | $ | 435,778 | $ | 446,857 | $ | 400,324 | $ | 433,308 | $ | 280,924 | |
| Investment securities | 21,060 | 15,377 | 13,949 | 11,353 | 7,346 | 15,461 | 6,014 | ||||||||
| Interest-bearing balances and other | 41,472 | 28,481 | 23,258 | 24,803 | 37,640 | 29,546 | 24,238 | ||||||||
| Total interest-earning assets | 487,290 | 470,018 | 472,985 | 483,013 | 445,310 | 478,315 | 311,176 | ||||||||
| Noninterest-bearing deposits | 96,068 | 90,073 | 82,971 | 82,849 | 75,707 | 88,032 | 39,996 | ||||||||
| Interest-bearing liabilities: | |||||||||||||||
| Interest-bearing deposits | 319,900 | 294,502 | 292,409 | 302,119 | 312,155 | 302,260 | 238,327 | ||||||||
| Borrowed funds | 50,792 | 63,356 | 78,457 | 76,422 | 31,574 | 67,176 | 19,340 | ||||||||
| Total interest-bearing liabilities | 370,692 | 357,858 | 370,866 | 378,541 | 343,729 | 369,436 | 257,667 | ||||||||
| Total assets | 553,855 | 536,172 | 538,249 | 536,185 | 495,958 | 541,150 | 347,781 | ||||||||
| Common shareholders’ equity | 77,817 | 77,129 | 73,725 | 67,013 | 60,432 | 73,959 | 39,746 | ||||||||
| Tangible common equity (1) | 47,695 | 46,667 | 49,882 | 57,799 | 50,795 | 50,472 | 36,503 | ||||||||
(1) Non-GAAP financial measure. Tangible common equity is calculated by subtracting intangible assets from common shareholders’ equity.
| Dollars in thousands | Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
| 12/31/18 | 9/30/18 | 6/30/18 | 3/31/18 | 12/31/17 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Interest Income/Expense: | ||||||||||||||||||||||
| Loans | $ | 6,379 | $ | 6,329 | $ | 6,577 | $ | 6,036 | $ | 6,061 | $ | 25,321 | $ | 16,945 | ||||||||
| Investment securities | 171 | 111 | 105 | 64 | 39 | 450 | 144 | |||||||||||||||
| Interest-bearing balances and other | 248 | 170 | 126 | 120 | 117 | 665 | 304 | |||||||||||||||
| Total interest income | 6,798 | 6,610 | 6,808 | 6,220 | 6,217 | 26,436 | 17,393 | |||||||||||||||
| Deposits | 1,169 | 906 | 815 | 771 | 791 | 3,661 | 2,865 | |||||||||||||||
| Borrowings | 396 | 431 | 474 | 378 | 192 | 1,679 | 441 | |||||||||||||||
| Total interest expense | 1,565 | 1,337 | 1,289 | 1,149 | 983 | 5,340 | 3,306 | |||||||||||||||
| Net interest income | $ | 5,233 | $ | 5,273 | $ | 5,519 | $ | 5,071 | $ | 5,234 | $ | 21,096 | $ | 14,087 | ||||||||
| Average Yields and Costs: | ||||||||||||||||||||||
| Loans | 5.96 | % | 5.89 | % | 6.05 | % | 5.48 | % | 6.01 | % | 5.84 | % | 8.06 | % | ||||||||
| Investment securities | 3.25 | % | 2.89 | % | 3.01 | % | 2.25 | % | 2.12 | % | 2.91 | % | 3.19 | % | ||||||||
| Interest-bearing balances and other | 2.37 | % | 2.37 | % | 2.17 | % | 1.96 | % | 1.23 | % | 2.25 | % | 1.68 | % | ||||||||
| Total interest-earning assets | 5.53 | % | 5.58 | % | 5.77 | % | 5.22 | % | 5.54 | % | 5.52 | % | 7.47 | % | ||||||||
| Total interest-bearing deposits | 1.45 | % | 1.22 | % | 1.12 | % | 1.03 | % | 1.01 | % | 1.21 | % | 1.61 | % | ||||||||
| Borrowed funds | 3.09 | % | 2.70 | % | 2.42 | % | 2.01 | % | 2.41 | % | 2.50 | % | 3.05 | % | ||||||||
| Total interest-bearing liabilities | 1.67 | % | 1.48 | % | 1.39 | % | 1.23 | % | 1.13 | % | 1.45 | % | 1.72 | % | ||||||||
| Cost of funds | 1.33 | % | 1.18 | % | 1.14 | % | 1.01 | % | 0.93 | % | 1.17 | % | 1.48 | % | ||||||||
| Net interest margin | 4.26 | % | 4.45 | % | 4.68 | % | 4.26 | % | 4.66 | % | 4.41 | % | 6.05 | % | ||||||||
Noninterest Income
Noninterest income for the three months ended December 31, 2018 was $4,717,000, an increase of $3,171,000 or 205% as compared to the same prior year period. Specific items to note for the fourth quarter of 2018 include:
- Governmental lending revenue of $1,793,000 was an increase of $1,601,000 or 834% in comparison to the fourth quarter of 2017 primarily due to the originate-and-hold strategy instituted in the fourth quarter of 2017 that compressed gain on loan sales during that quarter; and
- Windsor revenue totaled $2,116,000, an increase of 1,913,000 or 924% as compared to the $213,000 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 fourth quarter of 2018 was $8,187,000, an increase of $2,290,000 or 39% from $5,897,000 for the three months ended December 31, 2017. Most of the increases in compensation, occupancy, and other operating expenses are related to the inclusion of Windsor expenses for the full three-month period in 2018 as compared to no expenses in the fourth quarter of 2017 as well as new positions and annual salary increases.
Branch Network Reorganization
On July 16, 2018, Sound Bank and West Town Bank & Trust entered into a purchase and assumption agreement pursuant to which Sound Bank would acquire West Town Bank & Trust’s two North Carolina branches located in Edenton, NC and Winterville, NC. The branch transaction closed on October 26, 2018, following receipt of required regulatory approvals. In addition to the transfer of certain real property in Edenton, NC, the branch reorganization resulted in the transfer of approximately $34.1 million in loan assets, $32.7 million in deposit liabilities, and $3.6 million in additional paid in capital to Sound Bank from its sister institution, West Town Bank & Trust.
About West Town Bancorp, Inc.
West Town Bancorp, Inc. is the multi-bank financial holding company for West Town Bank & Trust, a North Riverside, IL based state-chartered bank, and Sound Bank, a Morehead City, NC based state-chartered bank. West Town Bank & Trust provides banking services through its offices in Illinois, while Sound Bank provides banking services through its offices in North Carolina. Primary deposit products are checking, savings, and time certificate 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. Sound Bank’s primary regulators are the North Carolina Commissioner of Banks 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 that these disclosures were prepared. These statements can be identified by the use of words like “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; recent changes in tax law, including the impact of such changes on our tax assets and liabilities; 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 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
(Includes Sound Bank as of 9/1/2017)
| Dollars in thousands; unaudited | Ending Balance | ||||||||||||||
| 12/31/18 | 9/30/18 | 6/30/18 | 3/31/18 | 12/31/17 | |||||||||||
| Assets | |||||||||||||||
| Cash and due from banks | $ | 5,005 | $ | 5,292 | $ | 4,961 | $ | 4,725 | $ | 2,986 | |||||
| Interest-bearing deposits | 43,448 | 38,779 | 27,532 | 30,299 | 40,961 | ||||||||||
| Total cash and cash equivalents | 48,453 | 44,071 | 32,493 | 35,024 | 43,947 | ||||||||||
| Securities available for sale, at fair value | 21,332 | 20,615 | 13,769 | 14,171 | 7,119 | ||||||||||
| Loans held for sale | 16,552 | 15,819 | 31,994 | 61,286 | 66,706 | ||||||||||
| Loans held for investment: | |||||||||||||||
| Originated loans | 322,038 | 307,166 | 294,471 | 265,887 | 242,744 | ||||||||||
| Acquired loans, net | 88,556 | 101,311 | 110,439 | 124,919 | 135,808 | ||||||||||
| Allowance for loan losses | (4,000 | ) | (3,900 | ) | (3,835 | ) | (3,791 | ) | (3,427 | ) | |||||
| Net loans held for investment | 406,594 | 404,577 | 401,075 | 387,015 | 375,125 | ||||||||||
| Premises and equipment, net | 12,166 | 12,263 | 11,586 | 11,502 | 11,563 | ||||||||||
| Foreclosed assets | 723 | 796 | 54 | 54 | 0 | ||||||||||
| Servicing assets | 3,952 | 4,280 | 4,598 | 4,969 | 5,237 | ||||||||||
| Bank owned life insurance | 9,034 | 8,977 | 8,917 | 8,853 | 8,796 | ||||||||||
| Accrued interest receivable | 1,637 | 1,758 | 1,776 | 1,870 | 1,544 | ||||||||||
| Goodwill | 19,745 | 19,745 | 19,745 | 7,016 | 7,016 | ||||||||||
| Other intangible assets, net | 10,157 | 10,493 | 10,837 | 2,102 | 2,272 | ||||||||||
| Other assets | 4,979 | 8,100 | 7,644 | 15,565 | 14,809 | ||||||||||
| Total assets | $ | 555,324 | $ | 551,494 | $ | 544,488 | $ | 549,427 | $ | 544,134 | |||||
| Liabilities and Shareholders’ Equity | |||||||||||||||
| Liabilities | |||||||||||||||
| Deposits: | |||||||||||||||
| Noninterest-bearing | $ | 97,777 | $ | 94,829 | $ | 88,172 | $ | 86,561 | $ | 84,178 | |||||
| Interest-bearing | 335,140 | 305,257 | 289,416 | 298,711 | 308,556 | ||||||||||
| Total deposits | 432,917 | 400,086 | 377,588 | 385,272 | 392,734 | ||||||||||
| Short term borrowings | 27,000 | 58,400 | 73,400 | 81,500 | 72,100 | ||||||||||
| Long term borrowings | 6,781 | 7,267 | 7,754 | 6,314 | 6,803 | ||||||||||
| Accrued interest payable | 868 | 550 | 466 | 389 | 296 | ||||||||||
| Other liabilities | 10,189 | 8,746 | 9,600 | 7,984 | 6,621 | ||||||||||
| Total liabilities | 477,755 | 475,049 | 468,808 | 481,459 | 478,554 | ||||||||||
| Shareholders’ equity | |||||||||||||||
| Preferred stock | 0 | 0 | 0 | 0 | 0 | ||||||||||
| Common stock, voting | 2,686 | 2,666 | 2,660 | 2,623 | 2,623 | ||||||||||
| Common stock, non-voting | 329 | 329 | 329 | 329 | 329 | ||||||||||
| Additional paid-in capital | 44,760 | 44,576 | 44,429 | 44,385 | 44,185 | ||||||||||
| Retained earnings | 29,928 | 29,154 | 28,436 | 20,765 | 18,447 | ||||||||||
| Accumulated other comprehensive loss | (134 | ) | (280 | ) | (174 | ) | (134 | ) | (4 | ) | |||||
| Total shareholders’ equity | 77,569 | 76,445 | 75,680 | 67,968 | 65,580 | ||||||||||
| Total liabilities and shareholders’ equity | $ | 555,324 | $ | 551,494 | $ | 544,488 | $ | 549,427 | $ | 544,134 | |||||
Financial Performance (Consolidated)
(Includes Sound Bank as of 9/1/2017)
| Dollars in thousands, except per share data; unaudited | Three Months Ended | Twelve Months Ended | ||||||||||||||||
| 12/31/18 | 9/30/18 | 6/30/18 | 3/31/18 | 12/31/17 | 12/31/18 | 12/31/17 | ||||||||||||
| Interest income | ||||||||||||||||||
| Interest and fees on loans | $ | 6,379 | $ | 6,329 | $ | 6,577 | $ | 6,036 | $ | 6,062 | $ | 25,321 | $ | 16,946 | ||||
| Investment securities & deposits | 419 | 281 | 231 | 184 | 155 | 1,115 | 448 | |||||||||||
| Total interest income | 6,798 | 6,610 | 6,808 | 6,220 | 6,217 | 26,436 | 17,394 | |||||||||||
| Interest expense | ||||||||||||||||||
| Interest on deposits | 1,169 | 906 | 815 | 771 | 792 | 3,661 | 2,865 | |||||||||||
| Interest on borrowed funds | 396 | 431 | 474 | 378 | 191 | 1,679 | 441 | |||||||||||
| Total interest expense | 1,565 | 1,337 | 1,289 | 1,149 | 983 | 5,340 | 3,306 | |||||||||||
| Net interest income | 5,233 | 5,273 | 5,519 | 5,071 | 5,234 | 21,096 | 14,088 | |||||||||||
| Provision for loan losses | 434 | 789 | 261 | 469 | 1,129 | 1,953 | 2,177 | |||||||||||
| Noninterest income | ||||||||||||||||||
| Government lending revenue | 1,793 | 1,121 | 4,241 | 3,054 | 192 | 10,209 | 4,095 | |||||||||||
| Mortgage revenue | 359 | 491 | 868 | 455 | 515 | 2,173 | 4,707 | |||||||||||
| Service charge revenue | 228 | 196 | 222 | 219 | 203 | 865 | 324 | |||||||||||
| Bank owned life insurance income | 58 | 59 | 64 | 57 | 60 | 238 | 170 | |||||||||||
| Windsor revenue | 2,116 | 1,791 | 1,683 | 0 | 0 | 5,590 | 0 | |||||||||||
| Income from Windsor investment | 0 | 0 | 369 | 564 | 203 | 933 | 1,500 | |||||||||||
| Loss on sale of securities | 0 | 0 | 0 | 0 | 0 | 0 | (7 | ) | ||||||||||
| Gain on consolidation of Windsor | 0 | 0 | 4,776 | 0 | 0 | 4,776 | 0 | |||||||||||
| Other noninterest income | 163 | 211 | 133 | 172 | 373 | 679 | 738 | |||||||||||
| Total noninterest income | 4,717 | 3,869 | 12,356 | 4,521 | 1,546 | 25,463 | 11,527 | |||||||||||
| Noninterest expense | ||||||||||||||||||
| Compensation | 4,689 | 4,245 | 4,050 | 3,266 | 3,248 | 16,250 | 11,342 | |||||||||||
| Occupancy and equipment | 536 | 522 | 462 | 413 | 434 | 1,933 | 1,417 | |||||||||||
| Loan and special assets | 437 | 67 | 407 | 362 | 373 | 1,273 | 1,087 | |||||||||||
| Professional services | 511 | 437 | 317 | 274 | 313 | 1,539 | 1,130 | |||||||||||
| Data processing | 381 | 326 | 325 | 313 | 316 | 1,345 | 854 | |||||||||||
| Communication | 208 | 191 | 203 | 235 | 188 | 837 | 469 | |||||||||||
| Advertising | 135 | 147 | 418 | 54 | 109 | 754 | 369 | |||||||||||
| Loss on sale of foreclosed assets | 0 | 0 | 41 | 0 | 0 | 41 | 0 | |||||||||||
| Transaction-related expenses | 31 | 5 | 74 | 14 | 60 | 124 | 588 | |||||||||||
| Other operating expense | 1,259 | 1,013 | 1,118 | 864 | 856 | 4,254 | 2,323 | |||||||||||
| Total noninterest expense | 8,187 | 6,953 | 7,415 | 5,795 | 5,897 | 28,350 | 19,579 | |||||||||||
| Income (loss) before income taxes | 1,329 | 1,400 | 10,199 | 3,328 | (246 | ) | 16,256 | 3,859 | ||||||||||
| Income tax expense (benefit) | 373 | 372 | 2,528 | 847 | (798 | ) | 4,120 | 967 | ||||||||||
| Net income | $ | 956 | $ | 1,028 | $ | 7,671 | $ | 2,481 | $ | 552 | $ | 12,136 | $ | 2,892 | ||||
| Basic earnings per common share | $ | 0.31 | $ | 0.34 | $ | 2.58 | $ | 0.84 | $ | 0.21 | $ | 4.07 | $ | 1.60 | ||||
| Diluted earnings per common share | $ | 0.30 | $ | 0.33 | $ | 2.47 | $ | 0.80 | $ | 0.20 | $ | 3.90 | $ | 1.54 | ||||
| Weighted average common shares outstanding | 3,008 | 2,996 | 2,980 | 2,952 | 2,649 | 2,984 | 1,804 | |||||||||||
| Diluted average common shares outstanding | 3,124 | 3,127 | 3,115 | 3,087 | 2,755 | 3,110 | 1,881 | |||||||||||
Performance Ratios
(Includes Sound Bank as of 9/1/2017)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||
| 12/31/18 | 9/30/18 | 6/30/18 | 3/31/18 | 12/31/17 | 12/31/18 | 12/31/17 | ||||||||||||||||
| PER COMMON SHARE | ||||||||||||||||||||||
| Basic earnings per common share | $ | 0.31 | $ | 0.34 | $ | 2.58 | $ | 0.84 | $ | 0.21 | $ | 4.07 | $ | 1.60 | ||||||||
| Diluted earnings per common share | $ | 0.30 | $ | 0.33 | $ | 2.47 | $ | 0.80 | $ | 0.20 | $ | 3.90 | $ | 1.54 | ||||||||
| Book value per common share | $ | 25.52 | $ | 25.31 | $ | 25.11 | $ | 23.02 | $ | 22.21 | $ | 25.52 | $ | 22.21 | ||||||||
| Tangible book value per common share | $ | 15.68 | $ | 15.30 | $ | 14.96 | $ | 19.94 | $ | 19.07 | $ | 15.68 | $ | 19.07 | ||||||||
| FINANCIAL RATIOS (ANNUALIZED) | ||||||||||||||||||||||
| Return on average assets | 0.68 | % | 0.76 | % | 5.72 | % | 1.88 | % | 0.44 | % | 2.24 | % | 0.83 | % | ||||||||
| Return on average common shareholders’ equity | 4.87 | % | 5.29 | % | 41.73 | % | 15.02 | % | 3.62 | % | 16.41 | % | 7.27 | % | ||||||||
| Return on tangible common equity | 7.95 | % | 8.74 | % | 61.68 | % | 18.30 | % | 4.31 | % | 24.05 | % | 10.58 | % | ||||||||
| Net interest margin (FTE) | 4.26 | % | 4.45 | % | 4.68 | % | 4.26 | % | 4.66 | % | 4.41 | % | 6.05 | % | ||||||||
| Efficiency ratio(1) | 82.3 | % | 76.1 | % | 56.6 | % | 60.4 | % | 87.0 | % | 67.9 | % | 76.4 | % | ||||||||
(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
