RALEIGH, N.C., Feb. 18, 2020 (GLOBE NEWSWIRE) — West Town Bancorp, Inc. (OTC PINK: WTWB) (the “Company” or “West Town”), the financial holding company for West Town Bank & Trust (“the Bank”), announced today its financial results for the three months ended December 31, 2019. Highlights include the following:
Fourth quarter net income of $1.73 million or $0.83 per diluted share, compared to $956,000 or $0.30 per diluted share for the fourth quarter of 2018.
- Return on average assets of 2.21%, compared to 0.68% for the fourth quarter of 2018.
- Return on average common equity of 10.22%, compared to 4.87% for the fourth quarter of 2018.
- Return on average tangible common equity (a non-GAAP financial measure) of 15.79%, compared to 7.95% for the fourth quarter of 2018.
- Windsor Advantage, LLC (“Windsor”) processing and servicing revenue of $2.26 million as compared to $1.49 million for the same period last year.
As previously announced, on May 6, 2019, Sound Bank, formerly a wholly owned subsidiary of West Town, completed a recapitalization that resulted in a significant reduction in West Town’s ownership position in the bank, which, effective October 1, 2019, changed its name to Dogwood State Bank. Due to the reduction in West Town’s ownership position, the financial results for the Company beginning on May 6, 2019 are deconsolidated from the financial results of Sound Bank. Therefore, on a comparative basis, the Company’s financial results for the fourth quarter of 2019 do not include any operating impact from Sound Bank whereas the financial results for the fourth quarter of 2018 are impacted by the performance of Sound Bank.
Eric Bergevin, President and CEO commented, “We are pleased with our fourth quarter results and 2019 overall. The Company went through transformational changes in 2019 by divesting our controlling interest in Sound Bank, repurchasing upwards of a third of our shares outstanding, launching new intuitive deposit programs and expanding our product offerings that are synergistic with our core government guaranteed lending (“GGL”) focus. The Company was able to deliver strong fourth quarter results, including a 7th consecutive quarter of increased servicing revenue from Windsor Advantage and enhanced revenues from GGL loans of $2.3 million in revenue on $22.9 million of originated loan commitments. The strong fourth quarter resulted in one of our most profitable years to date with total after tax income exceeding $11 million dollars and over $4.00 per share in earnings. Our new deposit initiatives for West Town Bank & Trust (excluding Sound Bank) have resulted in a one-year growth in core deposits of over 21% and growth in noninterest-bearing deposits of over 53%. These funding strategies, coupled with strong capital levels, will allow for future growth. We are optimistic that 2020 will yield modestly enhanced core earnings, with accretive core earnings per share, as we keep our focus on our core competencies.”
During the fourth quarter of 2019, the Company repurchased 27,500 shares of its voting common stock.
Balance Sheet
At December 31, 2019, the Company’s total assets were $314.9 million, net loans held for investment were $223.5 million, loans held for sale were $12.6 million, total deposits were $220.4 million and total shareholders’ equity was $67.7 million. Compared with December 31, 2018, total assets decreased $240.4 million or 43%, loans held for investment decreased $187.1 million or 58%, loans held for sale decreased $4.0 million or 24%, total deposits decreased $212.5 million or 49%, and total shareholders’ equity decreased $9.8 million or 13%. The decreases in assets, loans and deposits were a result of the Sound Bank recapitalization and deconsolidation of Sound Bank from the consolidated financials as of May 6, 2019. The decrease in total shareholders’ equity resulted from the Company’s stock repurchase program, partially offset by an increase in retained earnings.
Capital Levels
At December 31, 2019, the regulatory capital ratios of West Town Bank & Trust exceeded the minimum thresholds established for well-capitalized banks under applicable banking regulations.
| “Well Capitalized” Minimums | West Town Bank & Trust | |
| Tier 1 common equity ratio | 6.50% | 14.95% |
| Tier 1 risk-based capital ratio | 8.00% | 14.95% |
| Total risk-based capital ratio | 10.00% | 16.21% |
| Tier 1 leverage ratio | 5.00% | 12.65% |
The Company’s book value per common share increased from $25.52 at December 31, 2018 to $30.78 at December 31, 2019. The Company’s tangible book value per common share (a non-GAAP financial measure) increased from $15.68 at December 31, 2018 to $21.27 at December 31, 2019 due primarily to the gain on deconsolidation of Sound Bank and the subsequent removal of the intangible assets associated with Sound Bank from the consolidated financial statements.
Asset Quality
The Company’s nonperforming assets to total assets ratio increased from 1.41% at December 31, 2018 to 3.99% at December 31, 2019 primarily due to the removal of Sound Bank from the consolidated financial statements. Nonaccrual loans increased $2.4 million as of December 31, 2019 as compared to the prior year while foreclosed assets increased $2.6 million compared to December 31, 2018. The Company has formed Patriarch, LLC as a subsidiary to expedite the liquidation and recovery of certain Bank assets and as of December 31, 2019 Patriarch held $1.8 million in assets (included in the foreclosed assets number) while the Bank also held $1.3 million of guaranteed portions of GGL loans both of which are included in the Company’s nonperforming ratio. The Bank also regularly conducts impairment analyses on all nonperforming assets with updated appraisals, less cost to sell, to ensure the assets are carried at fair market value with any deficits charged off immediately versus carrying specific reserves.
The Company recorded a $1.2 million provision for loan losses during the fourth quarter of 2019 as compared to a provision of $434,000 in fourth quarter 2018 in response to the increasing nonperforming asset ratios. The Company recorded $779,000 in net charge-offs during the fourth quarter 2019 with the remaining provision expense due to volume growth.
| (Dollars in thousands) | 12/31/19 | 9/30/19 | 6/30/19 | 3/31/19 | 12/31/18 | ||||||||||
| Nonaccrual loans – originated | $ | 9,200 | $ | 4,813 | $ | 3,290 | $ | 4,666 | $ | 6,538 | |||||
| Nonaccrual loans – acquired | – | – | – | 262 | 272 | ||||||||||
| Foreclosed assets | 3,370 | 2,028 | 2,069 | 2,493 | 723 | ||||||||||
| 90 days past due and still accruing – originated | – | – | – | 407 | 67 | ||||||||||
| 90 days past due and still accruing – acquired | – | – | – | 421 | 251 | ||||||||||
| Total nonperforming assets | 12,570 | 6,841 | 5,359 | 8,249 | 7,851 | ||||||||||
| Total nonperforming assets – originated | 12,570 | 6,841 | 5,359 | 7,566 | 7,328 | ||||||||||
| Net charge-offs | $ | 779 | $ | 138 | $ | 200 | $ | 58 | $ | 334 | |||||
| Annualized net charge-offs to total average portfolio loans | 1.36 | % | 0.25 | % | 0.27 | % | 0.05 | % | 0.31 | % | |||||
| Ratio of total nonperforming assets to total assets | 3.99 | % | 2.21 | % | 1.77 | % | 1.40 | % | 1.41 | % | |||||
| Ratio of total nonperforming loans to total net portfolio loans | 4.19 | % | 2.31 | % | 1.57 | % | 1.38 | % | 1.74 | % | |||||
| Ratio of total allowance for loan losses to total portfolio loans | 1.72 | % | 1.64 | % | 1.62 | % | 0.98 | % | 0.97 | % |
Net Interest Income and Margin
Net interest income for the three months ended December 31, 2019 decreased $2.6 million or 49% in comparison to the fourth quarter 2018, primarily due to the deconsolidation of Sound Bank from the consolidated financial statements as of May 6, 2019. The net interest margin increased from 4.77% for the fourth quarter 2018 to 4.84% for the fourth quarter 2019. The margin improvement is largely related to the increase in loan yield from 6.54% to 7.14%, due primarily to a change in the makeup of the loan portfolio as the percentage of consumer-related loans decreased while the higher yielding commercially focused loan associated with the GGL department became a larger portion of the portfolio with the deconsolidation of Sound Bank.
| Three Months Ended | Year-to-Date | |||||||||||||||||||
| (Dollars in thousands) | 12/31/19 | 9/30/19 | 6/30/19 | 3/31/19 | 12/31/18 | 12/31/19 | 12/31/18 | |||||||||||||
| Average balances: | ||||||||||||||||||||
| Loans | $ | 229,941 | $ | 220,939 | $ | 297,501 | $ | 435,583 | $ | 424,758 | $ | 295,228 | $ | 433,308 | ||||||
| Investment securities | 21,572 | 21,111 | 20,960 | 21,119 | 21,060 | 21,192 | 15,461 | |||||||||||||
| Interest-bearing balances and other | 16,259 | 16,801 | 47,025 | 54,690 | 41,472 | 33,537 | 29,546 | |||||||||||||
| Total interest-earning assets | 267,772 | 258,851 | 365,486 | 511,392 | 487,290 | 349,957 | 478,315 | |||||||||||||
| Noninterest deposits | 52,456 | 47,199 | 75,643 | 112,836 | 96,068 | 71,802 | 88,032 | |||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||
| Interest-bearing deposits | 179,195 | 170,390 | 234,603 | 338,682 | 319,900 | 230,107 | 302,260 | |||||||||||||
| Borrowed funds | 6,129 | 6,452 | 17,204 | 37,852 | 50,792 | 16,803 | 67,176 | |||||||||||||
| Total interest-bearing liabilities | 185,324 | 176,842 | 251,807 | 376,534 | 370,692 | 246,910 | 369,436 | |||||||||||||
| Total assets | 311,312 | 300,011 | 416,840 | 576,640 | 553,855 | 400,199 | 541,150 | |||||||||||||
| Common shareholders’ equity | 67,172 | 68,448 | 82,090 | 78,698 | 77,817 | 74,064 | 73,959 | |||||||||||||
| Tangible common equity (1) | 43,486 | 47,636 | 57,825 | 48,918 | 47,695 | 46,836 | 50,472 | |||||||||||||
| Interest income/expense: | ||||||||||||||||||||
| Loans | $ | 4,139 | $ | 4,315 | $ | 5,218 | $ | 7,122 | $ | 7,002 | $ | 20,794 | $ | 27,005 | ||||||
| Investment securities | 82 | 76 | 100 | 167 | 171 | 343 | 450 | |||||||||||||
| Interest-bearing balances and other | 83 | 105 | 241 | 356 | 248 | 867 | 665 | |||||||||||||
| Total interest income | 4,304 | 4,496 | 5,559 | 7,645 | 7,421 | 22,004 | 28,120 | |||||||||||||
| Deposits | 979 | 942 | 1,104 | 1,432 | 1,169 | 4,457 | 3,661 | |||||||||||||
| Borrowings | 56 | 72 | 172 | 330 | 396 | 630 | 1,679 | |||||||||||||
| Total interest expense | 1,035 | 1,014 | 1,276 | 1,762 | 1,565 | 5,087 | 5,340 | |||||||||||||
| Net interest income | $ | 3,269 | $ | 3,482 | $ | 4,283 | $ | 5,883 | $ | 5,856 | $ | 16,917 | $ | 22,780 | ||||||
| (1) Non-GAAP financial measure. Tangible common equity is calculated by subtracting intangible assets from common shareholders’ equity |
| Three Months Ended | Year-to-Date | ||||||||||||||
| 12/31/19 | 9/30/19 | 6/30/19 | 3/31/19 | 12/31/18 | 12/31/19 | 12/31/18 | |||||||||
| Average yields and costs: | |||||||||||||||
| Loans | 7.14 | % | 7.75 | % | 7.04 | % | 6.63 | % | 6.54 | % | 7.04 | % | 6.23 | % | |
| Investment securities | 1.52 | % | 1.44 | % | 1.91 | % | 3.16 | % | 3.25 | % | 1.62 | % | 2.91 | % | |
| Interest-bearing balances and other | 2.03 | % | 2.48 | % | 2.06 | % | 2.64 | % | 2.37 | % | 2.59 | % | 2.25 | % | |
| Total interest-earning assets | 6.38 | % | 6.89 | % | 6.10 | % | 6.06 | % | 6.04 | % | 6.28 | % | 5.87 | % | |
| Interest-bearing deposits | 2.17 | % | 2.19 | % | 1.89 | % | 1.71 | % | 1.45 | % | 1.94 | % | 1.21 | % | |
| Borrowed funds | 3.62 | % | 4.43 | % | 4.01 | % | 3.54 | % | 3.09 | % | 3.75 | % | 2.50 | % | |
| Total interest-bearing liabilities | 2.22 | % | 2.27 | % | 2.03 | % | 1.90 | % | 1.67 | % | 2.06 | % | 1.45 | % | |
| Cost of funds | 1.73 | % | 1.80 | % | 1.56 | % | 1.46 | % | 1.33 | % | 1.60 | % | 1.17 | % | |
| Net interest margin | 4.84 | % | 5.34 | % | 4.70 | % | 4.67 | % | 4.77 | % | 4.83 | % | 4.76 | % |
Noninterest Income
Noninterest income for the three months ended December 31, 2019 was $5.4 million, an increase of $697,000 as compared to the same prior year period. Specific items to note include:
- Windsor processing and servicing revenue totaled $2.3 million, an increase of $763,000, or 51% as compared to the $1.5 million in income earned from the investment in Windsor during the same prior year period. The increase is directly attributable to the continued growth in the volume in the servicing portfolio as Windsor brings in new customers.
- GGL revenue of $2.3 million was an increase of $495,000 or 28% in comparison to the fourth quarter of 2018.
- Mortgage revenue totaled $716,000, an increase of $357,000 or 99% as compared to the fourth quarter 2018. Mortgage loans originated for secondary market sale increased from $11.4 million in the fourth quarter 2018 to $20.6 million in the fourth quarter 2019.
Noninterest Expense
Noninterest expense for the fourth quarter 2019 was $5.8 million, a decrease of $2.4 million or 30%, from $8.2 million for the fourth quarter 2018. The decreases in all noninterest expense categories, including compensation, occupancy, data processing, communications and other operating expenses are primarily related to the deconsolidation of Sound Bank from the consolidated financial statements as of May 6, 2019.
About West Town Bancorp, Inc.
West Town Bancorp, Inc. is a financial holding company based in Raleigh, NC. The Company is the 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. The Company is also the parent company of: Windsor Advantage, LLC, a loan servicing company; West Town Insurance Agency, Inc., an insurance agency; Patriarch, LLC, a real estate management company; SBA Loan Documentation Services, LLC, a loan documentation origination company; and Glenwood Structured Finance, LLC, a loan broker and large loan syndication company. 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
| Ending Balance | |||||||||||||||
| (Dollars in thousands, unaudited) | 12/31/19 | 9/30/19 | 6/30/19 | 3/31/19 | 12/31/18 | ||||||||||
| Assets | |||||||||||||||
| Cash and due from banks | $ | 5,021 | $ | 4,085 | $ | 2,665 | $ | 5,433 | $ | 5,005 | |||||
| Interest-bearing deposits | 12,595 | 18,814 | 17,196 | 72,382 | 43,448 | ||||||||||
| Total cash and cash equivalents | 17,616 | 22,899 | 19,861 | 77,815 | 48,453 | ||||||||||
| Securities, at fair value | 21,087 | 21,804 | 20,716 | 21,031 | 21,332 | ||||||||||
| Loans held for sale | 12,568 | 13,965 | 14,902 | 11,037 | 16,552 | ||||||||||
| Loans held for investment: | |||||||||||||||
| Originated loans | 223,470 | 211,647 | 209,492 | 336,505 | 322,038 | ||||||||||
| Acquired loans, net | – | – | – | 81,978 | 88,556 | ||||||||||
| Allowance for loan and lease losses | (3,837 | ) | (3,462 | ) | (3,400 | ) | (4,115 | ) | (4,000 | ) | |||||
| Net loans held for investment | 219,633 | 208,185 | 206,092 | 414,368 | 406,594 | ||||||||||
| Premises and equipment, net | 4,762 | 4,795 | 4,832 | 12,099 | 12,166 | ||||||||||
| Foreclosed assets | 3,370 | 2,028 | 2,069 | 2,493 | 723 | ||||||||||
| Servicing assets | 3,358 | 3,053 | 3,220 | 3,619 | 3,952 | ||||||||||
| Bank owned life insurance | 5,021 | 4,993 | 4,964 | 9,090 | 9,034 | ||||||||||
| Accrued interest receivable | 1,116 | 1,079 | 1,196 | 1,637 | 1,637 | ||||||||||
| Goodwill | 13,150 | 12,721 | 12,721 | 19,737 | 19,745 | ||||||||||
| Other intangible assets, net | 7,782 | 7,968 | 8,154 | 9,827 | 10,157 | ||||||||||
| Other assets | 5,428 | 5,779 | 4,638 | 8,066 | 4,979 | ||||||||||
| Total assets | $ | 314,891 | $ | 309,269 | $ | 303,365 | $ | 590,819 | $ | 555,324 | |||||
| Liabilities and Shareholders’ Equity | |||||||||||||||
| Liabilities | |||||||||||||||
| Deposits: | |||||||||||||||
| Noninterest bearing | $ | 49,573 | $ | 54,380 | $ | 46,068 | $ | 128,435 | $ | 97,777 | |||||
| Interest-bearing | 170,869 | 177,472 | 164,619 | 345,581 | 335,140 | ||||||||||
| Total deposits | 220,442 | 231,852 | 210,687 | 474,016 | 432,917 | ||||||||||
| Borrowings | 19,295 | 2,382 | 5,868 | 26,294 | 33,781 | ||||||||||
| Accrued interest payable | 429 | 424 | 433 | 927 | 868 | ||||||||||
| Other liabilities | 7,000 | 8,092 | 7,562 | 9,860 | 10,189 | ||||||||||
| Total liabilities | 247,166 | 242,750 | 224,550 | 511,097 | 477,755 | ||||||||||
| Shareholders’ equity: | |||||||||||||||
| Common stock, voting | 2,178 | 2,206 | 2,674 | 2,749 | 2,686 | ||||||||||
| Common stock, non-voting | 22 | 22 | 129 | 329 | 329 | ||||||||||
| Additional paid in capital | 24,233 | 24,771 | 38,557 | 45,287 | 44,760 | ||||||||||
| Retained earnings | 41,203 | 39,446 | 37,375 | 31,273 | 29,928 | ||||||||||
| Accumulated other comprehensive income (loss) | 89 | 74 | 80 | 84 | (134 | ) | |||||||||
| Total shareholders’ equity | 67,725 | 66,519 | 78,815 | 79,722 | 77,569 | ||||||||||
| Total liabilities and shareholders’ equity | $ | 314,891 | $ | 309,269 | $ | 303,365 | $ | 590,819 | $ | 555,324 |
Financial Performance (Consolidated)
| (Dollars in thousands except share | Three Months Ended | Twelve Months Ended | ||||||||||||||
| and per share data; unaudited) | 12/31/19 | 9/30/19 | 6/30/19 | 3/31/19 | 12/31/18 | 12/31/19 | 12/31/18 | |||||||||
| Interest income | ||||||||||||||||
| Loans | $ | 4,139 | $ | 4,315 | $ | 5,218 | $ | 7,122 | $ | 7,002 | $ | 20,794 | $ | 27,005 | ||
| Investment securities and deposits | 165 | 181 | 341 | 523 | 419 | 1,210 | 1,115 | |||||||||
| Total interest income | 4,304 | 4,496 | 5,559 | 7,645 | 7,421 | 22,004 | 28,120 | |||||||||
| Interest expense | ||||||||||||||||
| Interest on deposits | 979 | 942 | 1,104 | 1,432 | 1,169 | 4,457 | 3,661 | |||||||||
| Interest on borrowed funds | 56 | 72 | 172 | 330 | 396 | 630 | 1,679 | |||||||||
| Total interest expense | 1,035 | 1,014 | 1,276 | 1,762 | 1,565 | 5,087 | 5,340 | |||||||||
| Net interest income | 3,269 | 3,482 | 4,283 | 5,883 | 5,856 | 16,917 | 22,780 | |||||||||
| Provision for loan losses | 1,155 | 200 | 477 | 173 | 434 | 2,005 | 1,953 | |||||||||
| Noninterest income | ||||||||||||||||
| Windsor processing and servicing | ||||||||||||||||
| revenue | 2,256 | 1,774 | 1,970 | 1,487 | 1,493 | 7,487 | 3,906 | |||||||||
| Government lending | 2,288 | 983 | 1,754 | 880 | 1,793 | 5,905 | 10,209 | |||||||||
| Mortgage | 716 | 975 | 1,113 | 435 | 359 | 3,239 | 2,173 | |||||||||
| Bank-owned life insurance | 28 | 29 | 44 | 56 | 58 | 157 | 238 | |||||||||
| Service charge | 29 | 23 | 99 | 226 | 228 | 377 | 865 | |||||||||
| Gain on deconsolidation of Sound Bank | – | – | 6,635 | – | – | 6,635 | – | |||||||||
| Gain on consolidation of Windsor | – | – | – | – | – | – | 4,776 | |||||||||
| Other noninterest | 97 | 153 | 92 | 122 | 163 | 464 | 1,612 | |||||||||
| Total noninterest income | 5,414 | 3,937 | 11,707 | 3,206 | 4,094 | 24,264 | 23,779 | |||||||||
| Noninterest expense | ||||||||||||||||
| Compensation | 3,750 | 3,199 | 3,385 | 4,261 | 4,689 | 14,595 | 16,250 | |||||||||
| Occupancy and equipment | 221 | 343 | 338 | 506 | 536 | 1,408 | 1,933 | |||||||||
| Loan and special assets | 318 | (523 | ) | 510 | 179 | 437 | 484 | 1,273 | ||||||||
| Professional services | 360 | 432 | 569 | 582 | 511 | 1,943 | 1,539 | |||||||||
| Data processing | 109 | 161 | 198 | 345 | 381 | 813 | 1,345 | |||||||||
| Communications | 80 | 33 | 110 | 226 | 208 | 449 | 837 | |||||||||
| Advertising | 86 | 51 | 109 | 112 | 135 | 358 | 754 | |||||||||
| Loss on sale of foreclosed assets | – | – | 35 | 21 | – | 56 | 41 | |||||||||
| Transaction-related expenses | 16 | 1 | 916 | 43 | 31 | 976 | 124 | |||||||||
| Other operating expenses | 820 | 681 | 1,040 | 1,179 | 1,259 | 3,720 | 4,254 | |||||||||
| Total noninterest expense | 5,760 | 4,378 | 7,210 | 7,454 | 8,187 | 24,802 | 28,350 | |||||||||
| Income before income taxes | 1,768 | 2,841 | 8,303 | 1,462 | 1,329 | 14,374 | 16,256 | |||||||||
| Income tax expense | 37 | 687 | 2,174 | 397 | 373 | 3,295 | 4,120 | |||||||||
| Net income | $ | 1,731 | $ | 2,154 | $ | 6,129 | $ | 1,065 | $ | 956 | $ | 11,079 | $ | 12,136 | ||
| Basic earnings per common share | $ | 0.85 | $ | 0.97 | $ | 2.03 | $ | 0.35 | $ | 0.31 | $ | 4.20 | $ | 4.07 | ||
| Diluted earnings per common share | $ | 0.83 | $ | 0.95 | $ | 2.00 | $ | 0.34 | $ | 0.30 | $ | 4.12 | $ | 3.90 | ||
| Weighted average common shares | ||||||||||||||||
| outstanding | 2,196 | 2,328 | 2,997 | 3,054 | 3,008 | 2,639 | 2,984 | |||||||||
| Diluted average common shares | ||||||||||||||||
| outstanding | 2,234 | 2,369 | 3,045 | 3,115 | 3,124 | 2,688 | 3,110 |
Performance Ratios
| Three Months Ended | Year-to-Date | |||||||||||||||||||||
| 12/31/19 | 9/30/19 | 6/30/19 | 3/31/19 | 12/31/18 | 12/31/19 | 12/31/18 | ||||||||||||||||
| PER COMMON SHARE | ||||||||||||||||||||||
| Basic earnings per common share | $ | 0.85 | $ | 0.97 | $ | 2.03 | $ | 0.35 | $ | 0.31 | $ | 4.20 | $ | 4.07 | ||||||||
| Diluted earnings per common share | $ | 0.83 | $ | 0.95 | $ | 2.00 | $ | 0.34 | $ | 0.30 | $ | 4.12 | $ | 3.90 | ||||||||
| Book value per common share | $ | 30.78 | $ | 29.86 | $ | 28.12 | $ | 25.70 | $ | 25.52 | $ | 30.78 | $ | 25.52 | ||||||||
| Tangible book value per common share | $ | 21.27 | $ | 20.57 | $ | 20.67 | $ | 16.17 | $ | 15.68 | $ | 21.27 | $ | 15.68 | ||||||||
| FINANCIAL RATIOS (ANNUALIZED) | ||||||||||||||||||||||
| Return on average assets | 2.21 | % | 2.85 | % | 5.90 | % | 0.75 | % | 0.68 | % | 2.77 | % | 2.24 | % | ||||||||
| Return on average common shareholders’ | ||||||||||||||||||||||
| equity | 10.22 | % | 12.49 | % | 29.95 | % | 5.49 | % | 4.87 | % | 14.96 | % | 16.41 | % | ||||||||
| Return on average tangible common | ||||||||||||||||||||||
| equity | 15.79 | % | 17.94 | % | 42.51 | % | 8.83 | % | 7.95 | % | 23.65 | % | 24.05 | % | ||||||||
| Net interest margin (FTE) | 4.84 | % | 5.34 | % | 4.70 | % | 4.67 | % | 4.77 | % | 4.83 | % | 4.76 | % | ||||||||
| Efficiency ratio (1) | 66.2 | % | 59.0 | % | 67.3 | % | 81.5 | % | 82.0 | % | 69.0 | % | 67.6 | % | ||||||||
| (1) Efficiency ratio is calculated by dividing noninterest expense less transaction-related costs by the sum of net interest income and noninterest income, less gains or losses on sale of securities and consolidation and the fair value adjustment on the equity investment in Sound Bank |
Contact: Eric Bergevin, 252-482-4400
