CBB Bancorp Inc.
10/25/2024 | Press release | Distributed by Public on 10/25/2024 07:07
CBB Bancorp, Inc. Reports Third Quarter 2024 Financial Results
LOS ANGELES--(BUSINESS WIRE)-- CBB Bancorp, Inc. ("CBB" or the "Company') (OTCQX: CBBI), the holding company of Commonwealth Business Bank, doing business as "CBB Bank" (the "Bank"), announced today net income of $5.6 million for the third quarter 2024, or $0.53 per diluted share compared to $5.5 million in the second quarter 2024, or $0.51 per diluted share.
OVERALL RESULTS
Net income for the third quarter 2024 increased due to higher net interest income after provision for credit losses offset by lower noninterest income and higher noninterest expenses.
The return on average assets for the third quarter 2024 was 1.31% compared to 1.31% for the second quarter 2024 and 1.46% for the third quarter 2023. The return on average equity for the third quarter 2024 was 8.91% compared to 9.06% for the second quarter 2024 and 11.66% for the third quarter 2023.
The efficiency ratio for the third quarter 2024 was 56.61% compared to 55.69% for the second quarter 2024 and 52.23% for the third quarter 2023.
James Hong, President and CEO, said, "I am pleased to report that we have delivered another strong quarter, reflecting our unwavering commitment to serving our customers and communities. Our third quarter results demonstrate the resilience and dedication of our entire team. During the quarter, we saw a solid increase in both deposits and loan originations, underscoring the trust our customers place in us. Our strategic initiatives to enhance digital banking services have been met with increased adoption. We continue to prioritize financial health and stability, ensuring that our bank remains a safe and reliable partner for all our stakeholders."
INCOME STATEMENT
Net Interest Income
Net interest income for the third quarter 2024 was $15.5 million, an increase of $112 thousand, or 0.7%, quarter over quarter, but a decrease of $2.5 million, or 14.1% compared to the third quarter 2023.
Net interest income for the nine months ended on September 30, 2024 was $46.6 million, a decrease of $9.2 million or 16.4% compared to the same period last year. The decrease in net interest income was due to periodic sales of SBA loans and higher cost of interest-bearing deposits as maturing time deposits were rolled over into higher interest rate CDs.
Net Interest Margin
The net interest margin for the third quarter 2024 was 3.71% compared to 3.77% in the prior quarter. The decrease in the net interest margin compared to the second quarter was due to higher cost of funds. The cost of funds for the third quarter 2024 increased eight basis points to 3.60% compared to 3.52% in the second quarter and sixty-nine basis points from 2.91% in the third quarter 2023.
Provision for Credit Losses
Provision for credit losses was negative $100 thousand for the third quarter 2024 compared to $200 thousand in the second quarter 2024. No provision for credit losses was recorded in the second quarter 2023.
Noninterest Income
Noninterest income for the third quarter 2024 was $2.2 million compared to $2.3 million for the second quarter 2024, a decrease of $119 thousand, and an increase of $756 thousand compared to $1.5 million for the third quarter 2023.
Noninterest income for the nine months ended September 30, 2024 was $7.1 million, an increase of $1.8 million compared to the same period last year. The increase was due to a combination of higher gain on sale of loans and increased SBA servicing fee income and banking service fees.
Noninterest Expenses
Noninterest expenses for the third quarter 2024 were $10.0 million compared to $9.9 million for the second quarter 2024 and $10.2 million for the third quarter 2023. Noninterest expenses increased $160 thousand quarter over quarter on higher marketing and loan related expenses.
Noninterest expenses for the nine months ended on September 30, 2024 were $29.9 million, a decrease of $0.7 million or 2.3% compared to the same period last year.
Please refer to financial tables in this press release for additional information and trends.
Income Taxes
The Company's effective tax rate for the third quarter 2024 was 28.4% compared to 28.3% for second quarter 2024 and 28.3% for third quarter 2023.
BALANCE SHEET
Investment Securities
Investment securities were $63.2 million at September 30, 2024, a decrease of $9.8 million or 13.5% from June 30, 2024, and an increase of $1.6 million or 2.6% from September 30, 2023.
Loans Receivable
Loans receivable (including loans held-for-sale) at September 30, 2024 was $1.42 billion, a decrease of $16.8 million or 1.2% from June 30, 2024 and increased $301 thousand from September 30, 2023.
Allowance for Credit Losses and Asset Quality
The Allowance for Credit Losses ("ACL") at September 30, 2024, was $16.0 million which was 1.30% of loans held-for-investment compared to $16.0 million at June 30, 2024, or 1.31% of loans held-for-investment. At September 30, 2023, ACL was $15.3 million or 1.27% of total loans held-for-investment.
Total Nonperforming assets at September 30, 2024 were $8.6 million compared to $5.8 million at June 30, 2024 and $0.7 million at September 30, 2023. The ACL coverage to nonperforming assets was over 186% at September 30, 2024.
SBA Loans Held-for-Sale
Total SBA loans held-for-sale at September 30, 2024 was $198.0 million compared to $ 209.1 million June 30, 2024, and $219.4 million at September 30, 2023.
The Bank sold approximately $20.2 million in SBA loans with an average premium of 7.5% during the third quarter 2024 compared to the sale of $19.5 million with an average premium of 8.3% during the second quarter 2024. The Bank sold approximately $9.2 million of SBA loans with an average premium of 8.3% during the third quarter 2023.
Deposits
Total deposits were $1.45 billion at September 30, 2024, up $107.2 million or 8.0% from June 30, 2024, and down $101.7 million or 6.6% from September 30, 2023.
Borrowings
The Bank maintains $50.0 million in Federal Home Loan Bank advances and there was no change from the previous quarter.
Capital
Stockholders' equity was $250.5 million at September 30, 2024, which increased $5.3 million or 2.2%, quarter over quarter. Tangible book value per share at September 30, 2024 was $23.44, an increase of $0.50, or 2.2%, quarter over quarter.
Each of the Company's and the Bank's regulatory capital ratios compared to June 30, 2023. The Bank is considered "Well Capitalized" under the applicable regulatory capital rules.
The Common Equity Tier1 Risk-Based Capital Ratios at September 30, 2024, were 19.03% and 18.95% for the Company and the Bank, respectively. Total Risk-Based Capital Ratios were 20.26% and 20.18% for the Company and the Bank, respectively. Bank's Leverage Ratios were 14.64% and 14.58% for the Company and the Bank, respectively.
About CBB Bancorp, Inc.:
CBB Bancorp, Inc. is the holding company of Commonwealth Business Bank, a full-service commercial bank which specializes in loans to small-to-medium-sized businesses and does business as "CBB Bank." As of September 30, 2024, the Bank had eleven full-service banking offices in Los Angeles and Orange Counties in California, Dallas County in Texas and Honolulu, Hawaii. Two SBA regional offices in Los Angeles and Dallas Counties; and loan production offices in Georgia and Washington. For additional information, please go to www.cbb-bank.com under the tab "About Us" and select "Investor Relations" to see the 3Q 2024 Overview.
FORWARD-LOOKING STATEMENTS:
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. CBB Bancorp, Inc. (the "Company") intends that such forward-looking statements be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Future events are difficult to predict, and the expectations described herein are necessarily subject to risks and uncertainties that may cause actual results to differ materially and adversely from those described herein. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management's views as of any subsequent date. Factors that might cause actual results to differ materially from those presented, either expressed or implied, in this news release include, but are not limited to: the Company's ability to successfully execute its business plans and achieve its objectives; changes in general economic and financial market conditions, either nationally or locally in areas in which the Company conducts its operations; changes in interest rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Company's operations or business; loss of key personnel; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies.
The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances, except to the extent required by law.
Schedules and Financial Data: All tables and data to follow
| STATEMENT OF INCOME AND PERFORMANCE HIGHLIGHT (Unaudited) - Table 1 | ||||||||||||||||||||||||||||||
|
(Dollars in thousands, except per share amounts) |
||||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
| September 30, | June 30, | $ | % | September 30, | $ | % | September 30, | September 30, | $ | % | ||||||||||||||||||||
|
2024 |
2024 |
Change | Change |
2023 |
Change | Change |
2024 |
2023 |
Change | Change | ||||||||||||||||||||
| Interest income |
$ |
28,380 |
$ |
27,755 |
$ |
625 |
2.3 |
% |
$ |
29,450 |
$ |
(1,070 |
) |
(3.6 |
%) |
$ |
84,598 |
$ |
85,362 |
$ |
(764 |
) |
(0.9 |
%) |
||||||
| Interest expense |
12,904 |
12,391 |
513 |
4.1 |
% |
11,442 |
1,462 |
12.8 |
% |
37,950 |
29,540 |
8,410 |
28.5 |
% |
||||||||||||||||
| Net interest income |
15,476 |
15,364 |
112 |
0.7 |
% |
18,008 |
(2,532 |
) |
(14.1 |
%) |
46,648 |
55,822 |
(9,174 |
) |
(16.4 |
%) |
||||||||||||||
| Provision for credit losses |
(100 |
) |
200 |
(300 |
) |
(150.0 |
%) |
- |
(100 |
) |
100.0 |
% |
500 |
- |
500 |
100.0 |
% |
|||||||||||||
| Net interest income after provision for credit losses |
15,576 |
15,164 |
412 |
2.7 |
% |
18,008 |
(2,432 |
) |
(13.5 |
%) |
46,148 |
55,822 |
(9,674 |
) |
(17.3 |
%) |
||||||||||||||
| Gain on sale of loans |
991 |
1,064 |
(73 |
) |
-6.9 |
% |
419 |
572 |
26.7 |
% |
3,544 |
2,371 |
1,173 |
49.5 |
% |
|||||||||||||||
| Gain (loss) on sale of OREO |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|||||||||||||||||||
| SBA servicing fee income, net |
760 |
768 |
(8 |
) |
(1.0 |
%) |
639 |
121 |
18.9 |
% |
2,161 |
1,733 |
428 |
24.7 |
% |
|||||||||||||||
| Recovery on impaired servicing liability |
- |
- |
- |
- |
- |
- |
- |
10 |
- |
10 |
100.0 |
% |
||||||||||||||||||
| Service charges and other income |
465 |
503 |
(38 |
) |
(7.6 |
%) |
402 |
63 |
15.7 |
% |
1,397 |
1,207 |
190 |
15.7 |
% |
|||||||||||||||
| Noninterest income |
2,216 |
2,335 |
(119 |
) |
(5.1 |
%) |
1,460 |
756 |
51.8 |
% |
7,112 |
5,311 |
1,801 |
33.9 |
% |
|||||||||||||||
| Salaries and employee benefits |
5,884 |
5,927 |
(43 |
) |
(0.7 |
%) |
5,569 |
315 |
5.7 |
% |
17,835 |
17,229 |
606 |
3.5 |
% |
|||||||||||||||
| Occupancy and equipment |
1,149 |
1,114 |
35 |
3.1 |
% |
1,103 |
46 |
4.2 |
% |
3,385 |
3,349 |
36 |
1.1 |
% |
||||||||||||||||
| Marketing expense |
423 |
403 |
20 |
5.0 |
% |
475 |
(52 |
) |
(10.9 |
%) |
1,228 |
1,258 |
(30 |
) |
(2.4 |
%) |
||||||||||||||
| Professional expense |
456 |
440 |
16 |
3.6 |
% |
443 |
13 |
2.9 |
% |
1,308 |
1,333 |
(25 |
) |
(1.9 |
%) |
|||||||||||||||
| Other expenses |
2,104 |
1,972 |
132 |
6.7 |
% |
2,579 |
(475 |
) |
(18.4 |
%) |
6,160 |
7,458 |
(1,298 |
) |
(17.4 |
%) |
||||||||||||||
| Noninterest expense |
10,016 |
9,856 |
160 |
1.6 |
% |
10,169 |
(153 |
) |
(1.5 |
%) |
29,916 |
30,627 |
(711 |
) |
(2.3 |
%) |
||||||||||||||
| Income before income tax provision |
7,776 |
7,643 |
133 |
1.7 |
% |
9,299 |
(1,523 |
) |
(16.4 |
%) |
23,344 |
30,506 |
(7,162 |
) |
(23.5 |
%) |
||||||||||||||
| Income tax provision |
2,207 |
2,163 |
44 |
2.0 |
% |
2,630 |
(423 |
) |
(16.1 |
%) |
6,623 |
8,645 |
(2,022 |
) |
(23.4 |
%) |
||||||||||||||
| Net income |
$ |
5,569 |
$ |
5,480 |
$ |
89 |
1.6 |
% |
$ |
6,669 |
$ |
(1,100 |
) |
(16.5 |
%) |
$ |
16,721 |
$ |
21,861 |
$ |
(5,140 |
) |
(23.5 |
%) |
||||||
| Effective tax rate |
28.38 |
% |
28.30 |
% |
0.08 |
% |
0.29 |
% |
28.28 |
% |
0.10 |
% |
0.35 |
% |
28.37 |
% |
28.34 |
% |
0.03 |
% |
0.12 |
% |
||||||||
| Outstanding number of shares |
10,588,136 |
10,588,136 |
- |
- |
10,588,136 |
- |
- |
10,588,136 |
10,588,136 |
- |
- |
|||||||||||||||||||
| Weighted average shares for basic EPS |
10,588,136 |
10,588,136 |
- |
- |
10,588,136 |
- |
- |
10,588,136 |
10,584,198 |
3,938 |
0.0 |
% |
||||||||||||||||||
| Weighted average shares for diluted EPS |
10,596,039 |
10,588,136 |
7,903 |
0.1 |
% |
10,594,155 |
1,884 |
0.0 |
% |
10,592,363 |
10,595,275 |
(2,912 |
) |
(0.0 |
%) |
|||||||||||||||
| Basic EPS |
$ |
0.53 |
$ |
0.51 |
$ |
0.02 |
3.9 |
% |
$ |
0.63 |
$ |
(0.10 |
) |
(15.9 |
%) |
$ |
1.58 |
$ |
2.07 |
$ |
(0.49 |
) |
-23.7 |
% |
||||||
| Diluted EPS |
$ |
0.53 |
$ |
0.51 |
$ |
0.02 |
3.9 |
% |
$ |
0.63 |
$ |
(0.10 |
) |
(15.9 |
%) |
$ |
1.58 |
$ |
2.06 |
$ |
(0.48 |
) |
(23.3 |
%) |
||||||
| Return on average assets |
1.31 |
% |
1.31 |
% |
0.00 |
% |
0.0 |
% |
1.46 |
% |
(0.15 |
%) |
(10.3 |
%) |
1.32 |
% |
1.61 |
% |
(0.29 |
%) |
(18.0 |
%) |
||||||||
| Return on average equity |
8.91 |
% |
9.06 |
% |
(0.15 |
%) |
(1.7 |
%) |
11.66 |
% |
(2.75 |
%) |
(23.6 |
%) |
9.18 |
% |
13.27 |
% |
(4.09 |
%) |
(30.8 |
%) |
||||||||
| Efficiency ratio¹ |
56.61 |
% |
55.69 |
% |
0.92 |
% |
1.7 |
% |
52.23 |
% |
4.38 |
% |
8.4 |
% |
55.65 |
% |
50.10 |
% |
5.55 |
% |
11.1 |
% |
||||||||
| Yield on interest-earning assets² |
6.80 |
% |
6.79 |
% |
0.01 |
% |
0.2 |
% |
6.55 |
% |
0.25 |
% |
3.8 |
% |
6.79 |
% |
6.42 |
% |
0.37 |
% |
5.8 |
% |
||||||||
| Cost of funds |
3.60 |
% |
3.52 |
% |
0.08 |
% |
2.3 |
% |
2.91 |
% |
0.69 |
% |
23.7 |
% |
3.53 |
% |
2.51 |
% |
1.02 |
% |
40.6 |
% |
||||||||
| Net interest margin² |
3.71 |
% |
3.77 |
% |
(0.06 |
%) |
(1.6 |
%) |
4.01 |
% |
(0.30 |
%) |
(7.5 |
%) |
3.75 |
% |
4.20 |
% |
(0.45 |
%) |
(10.7 |
%) |
| 1 | Represents the ratio of noninterest expense less other real estate owned operations to the sum of net interest income before provision for credit losses and total noninterest income. |
| 2 | Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate |
| BALANCE SHEET, CAPITAL AND OTHER DATA (Unaudited) - Table 2 | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| September 30, | June 30, | $ | % | September 30, | $ | % | |||||||||||||
|
2024 |
2024 |
Change | Change |
2023 |
Change | Change | |||||||||||||
| ASSETS | |||||||||||||||||||
| Cash and due from banks |
$ |
14,892 |
$ |
11,667 |
$ |
3,225 |
27.6 |
% |
$ |
11,188 |
$ |
3,704 |
33.1 |
% |
|||||
| Interest-earning deposits at the FRB and other banks |
241,094 |
101,415 |
139,679 |
137.7 |
% |
335,016 |
(93,922 |
) |
(28.0 |
%) |
|||||||||
| Investment securities¹ |
63,208 |
73,051 |
(9,843 |
) |
(13.5 |
%) |
61,617 |
1,591 |
2.6 |
% |
|||||||||
| Loans held-for-sale |
198,021 |
209,144 |
(11,123 |
) |
(5.3 |
%) |
219,355 |
(21,334 |
) |
(9.7 |
%) |
||||||||
| Loans held-for-investment |
1,222,865 |
1,228,496 |
(5,631 |
) |
(0.5 |
%) |
1,201,230 |
21,635 |
1.8 |
% |
|||||||||
| Less: Allowance for credit losses ("ACL") |
(15,948 |
) |
(16,042 |
) |
94 |
0.6 |
% |
(15,284 |
) |
(664 |
) |
(4.3 |
%) |
||||||
|
Loans held-for-investment, net |
1,206,917 |
1,212,454 |
(5,537 |
) |
(0.5 |
%) |
1,185,946 |
20,971 |
1.8 |
% |
|||||||||
|
Other real estate owned ("OREO") |
521 |
- |
521 |
100.0 |
% |
55 |
466 |
847.3 |
% |
||||||||||
| Restricted stock investments |
11,011 |
11,011 |
- |
- |
11,011 |
- |
- |
||||||||||||
| Servicing assets |
7,192 |
7,404 |
(212 |
) |
(2.9 |
%) |
7,873 |
(681 |
) |
(8.6 |
%) |
||||||||
| Goodwill |
2,185 |
2,185 |
- |
- |
2,185 |
- |
- |
||||||||||||
| Intangible assets |
224 |
235 |
(11 |
) |
(4.7 |
%) |
267 |
(43 |
) |
(16.1 |
%) |
||||||||
| Other assets |
25,284 |
26,343 |
(1,059 |
) |
(4.0 |
%) |
24,799 |
485 |
2.0 |
% |
|||||||||
| Total assets |
$ |
1,770,549 |
$ |
1,654,909 |
$ |
115,640 |
7.0 |
% |
$ |
1,859,312 |
$ |
(88,763 |
) |
(4.8 |
%) |
||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||
| Noninterest-bearing |
$ |
318,807 |
$ |
281,243 |
$ |
37,564 |
13.4 |
% |
$ |
406,033 |
$ |
(87,226 |
) |
(21.5 |
%) |
||||
| Interest-bearing |
1,128,784 |
1,059,146 |
69,638 |
6.6 |
% |
1,143,257 |
(14,473 |
) |
(1.3 |
%) |
|||||||||
| Total deposits |
1,447,591 |
1,340,389 |
107,202 |
8.0 |
% |
1,549,290 |
(101,699 |
) |
(6.6 |
%) |
|||||||||
| FHLB advances and other borrowing |
50,000 |
50,000 |
- |
- |
50,000 |
- |
- |
||||||||||||
| Other liabilities |
22,415 |
19,260 |
3,155 |
16.4 |
% |
31,141 |
(8,726 |
) |
(28.0 |
%) |
|||||||||
| Total liabilities |
1,520,006 |
1,409,649 |
110,357 |
7.8 |
% |
1,630,431 |
(110,425 |
) |
(6.8 |
%) |
|||||||||
| Stockholders' Equity |
250,543 |
245,260 |
5,283 |
2.2 |
% |
228,881 |
21,662 |
9.5 |
% |
||||||||||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY |
$ |
1,770,549 |
$ |
1,654,909 |
$ |
115,640 |
7.0 |
% |
$ |
1,859,312 |
$ |
(88,763 |
) |
(4.8 |
%) |
||||
| CAPITAL RATIOS | |||||||||||||||||||
| Leverage ratio | |||||||||||||||||||
| Company |
14.64 |
% |
14.51 |
% |
0.12 |
% |
0.9 |
% |
12.53 |
% |
2.11 |
% |
16.8 |
% |
|||||
| Bank |
14.58 |
% |
14.45 |
% |
0.13 |
% |
0.9 |
% |
12.50 |
% |
2.08 |
% |
16.6 |
% |
|||||
| Common equity tier 1 risk-based capital ratio | |||||||||||||||||||
| Company |
19.03 |
% |
18.36 |
% |
0.67 |
% |
3.6 |
% |
17.61 |
% |
1.41 |
% |
8.0 |
% |
|||||
| Bank |
18.95 |
% |
18.28 |
% |
0.67 |
% |
3.7 |
% |
17.58 |
% |
1.37 |
% |
7.8 |
% |
|||||
| Tier 1 risk-based capital ratio | |||||||||||||||||||
| Company |
19.03 |
% |
18.36 |
% |
0.67 |
% |
3.6 |
% |
17.61 |
% |
1.41 |
% |
8.0 |
% |
|||||
| Bank |
18.95 |
% |
18.28 |
% |
0.67 |
% |
3.7 |
% |
17.57 |
% |
1.38 |
% |
7.8 |
% |
|||||
| Total risk-based capital ratio | |||||||||||||||||||
| Company |
20.26 |
% |
19.59 |
% |
0.67 |
% |
3.4 |
% |
18.83 |
% |
1.43 |
% |
7.6 |
% |
|||||
| Bank |
20.18 |
% |
19.50 |
% |
0.68 |
% |
3.5 |
% |
18.79 |
% |
1.39 |
% |
7.4 |
% |
|||||
| Earning Assets |
1,736,199 |
1,623,117 |
113,082 |
7.0 |
% |
1,828,229 |
$ |
(92,030 |
) |
(5.0 |
%) |
||||||||
| Outstanding Number of Shares¹ |
10,588,136 |
10,588,136 |
- |
0.0 |
% |
10,588,136 |
- |
0.0 |
% |
||||||||||
| Tangible Common Equity Ratio |
14.03 |
% |
14.70 |
% |
(0.67 |
%) |
(4.6 |
%) |
12.19 |
% |
1.84 |
% |
15.1 |
% |
|||||
| Tangible book value per share |
$ |
23.44 |
$ |
22.94 |
$ |
0.50 |
2.2 |
% |
$ |
21.39 |
$ |
2.05 |
9.6 |
% |
|||||
| Loans Held for Investments-to-Deposit ("LHFITD") ratio |
84.48 |
% |
91.65 |
% |
(7.17 |
%) |
(7.8 |
%) |
77.53 |
% |
6.95 |
% |
9.0 |
% |
|||||
| Net Loan-to-Deposit ("LTD") ratio |
97.05 |
% |
106.06 |
% |
(9.01 |
%) |
(8.5 |
%) |
90.71 |
% |
6.34 |
% |
7.0 |
% |
|||||
| Nonperforming assets |
$ |
8,558 |
$ |
5,797 |
$ |
2,761 |
47.6 |
% |
$ |
673 |
$ |
7,885 |
1171.6 |
% |
|||||
| Nonperforming assets as a % of loans held-for-investment |
0.70 |
% |
0.47 |
% |
0.23 |
% |
48.9 |
% |
0.06 |
% |
0.64 |
% |
1066.7 |
% |
|||||
| ACL as a % of loans held-for-investment |
1.30 |
% |
1.31 |
% |
(0.01 |
%) |
(0.76 |
%) |
1.27 |
% |
0.03 |
% |
2.4 |
% |
| 1 | Includes AFS and HTM |
|
FIVE-QUARTER STATEMENT OF INCOME (Unaudited) - Table 3 (Dollars in thousands, except per share amounts) |
|||||||||||||||
| Three Months Ended | |||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
|
2024 |
2024 |
2024 |
2023 |
2023 |
|||||||||||
| Interest income |
$ |
28,380 |
$ |
27,755 |
$ |
28,463 |
$ |
29,624 |
$ |
29,450 |
|||||
| Interest expense |
12,904 |
12,391 |
12,655 |
12,462 |
11,442 |
||||||||||
| Net interest income |
15,476 |
15,364 |
15,808 |
17,162 |
18,008 |
||||||||||
| Provision for credit losses |
(100 |
) |
200 |
400 |
- |
- |
|||||||||
| Net interest income after provision for credit losses |
15,576 |
15,164 |
15,408 |
17,162 |
18,008 |
||||||||||
| Gain on sale of loans |
991 |
1,064 |
1,489 |
838 |
419 |
||||||||||
| Gain (loss) on sale of OREO |
- |
- |
(1 |
) |
- |
- |
|||||||||
| SBA servicing fee income, net |
760 |
768 |
633 |
690 |
639 |
||||||||||
| Recovery on impaired servicing liability |
- |
- |
10 |
- |
- |
||||||||||
| Service charges and other income |
465 |
503 |
430 |
436 |
402 |
||||||||||
| Noninterest income |
2,216 |
2,335 |
2,561 |
1,964 |
1,460 |
||||||||||
| Salaries and employee benefits |
5,884 |
5,927 |
6,024 |
5,356 |
5,569 |
||||||||||
| Occupancy and equipment |
1,149 |
1,114 |
1,122 |
1,128 |
1,103 |
||||||||||
| Marketing expense |
423 |
403 |
402 |
250 |
475 |
||||||||||
| Professional expense |
456 |
440 |
412 |
360 |
443 |
||||||||||
| Other expenses |
2,104 |
1,972 |
2,084 |
2,363 |
2,579 |
||||||||||
| Noninterest expense |
10,016 |
9,856 |
10,044 |
9,457 |
10,169 |
||||||||||
| Income before income tax expense |
7,776 |
7,643 |
7,925 |
9,669 |
9,299 |
||||||||||
| Income tax expense |
2,207 |
2,163 |
2,253 |
2,670 |
2,630 |
||||||||||
| Net income |
$ |
5,569 |
$ |
5,480 |
$ |
5,672 |
$ |
6,999 |
$ |
6,669 |
|||||
| Effective tax rate |
28.4 |
% |
28.3 |
% |
28.4 |
% |
27.6 |
% |
28.3 |
% |
|||||
| Outstanding number of shares |
10,588,136 |
10,588,136 |
10,588,136 |
10,588,136 |
10,588,136 |
||||||||||
| Weighted average shares for basic EPS |
10,588,136 |
10,588,136 |
10,588,136 |
10,588,136 |
10,588,136 |
||||||||||
| Weighted average shares for diluted EPS |
10,596,039 |
10,588,136 |
10,588,688 |
10,588,937 |
10,594,155 |
||||||||||
| Basic EPS |
$ |
0.53 |
$ |
0.51 |
$ |
0.54 |
$ |
0.66 |
$ |
0.63 |
|||||
| Diluted EPS |
$ |
0.53 |
$ |
0.51 |
$ |
0.54 |
$ |
0.66 |
$ |
0.63 |
| FIVE-QUARTER SALARIES BENEFIT METRICS (Unaudited) - Table 4 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||
| At or for the Three Months Ended | |||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
|
2024 |
2024 |
2023 |
2023 |
2023 |
|||||||||||
| Salaries and benefits |
$ |
5,884 |
$ |
5,927 |
$ |
6,024 |
$ |
5,356 |
$ |
5,569 |
|||||
| FTE at the end of period |
178 |
172 |
168 |
169 |
172 |
||||||||||
| Average FTE during the period |
173 |
171 |
169 |
169 |
168 |
||||||||||
| Salaries and benefits/average FTE¹ |
$ |
135 |
$ |
139 |
$ |
143 |
$ |
126 |
$ |
131 |
|||||
| Salaries and benefits/average assets¹ |
1.38 |
% |
1.42 |
% |
1.41 |
% |
1.18 |
% |
1.22 |
% |
|||||
| Noninterest expense/average assets¹ |
2.35 |
% |
2.36 |
% |
2.35 |
% |
2.08 |
% |
2.22 |
% |
| 1 | Annualized |
| FIVE-QUARTER BALANCE SHEET (Unaudited) - Table 5 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
|
2024 |
2024 |
2024 |
2023 |
2023 |
|||||||||||
| ASSETS | |||||||||||||||
| Cash and due from banks |
$ |
14,892 |
$ |
11,667 |
$ |
11,612 |
$ |
14,282 |
$ |
11,188 |
|||||
| Interest-earning deposits at the FRB and other banks |
241,094 |
101,415 |
181,366 |
233,255 |
335,016 |
||||||||||
| Investment securities |
63,208 |
73,051 |
59,143 |
59,883 |
61,617 |
||||||||||
| Loans held-for-sale |
198,021 |
209,144 |
198,167 |
218,258 |
219,355 |
||||||||||
| Loans held-for-investment |
1,222,865 |
1,228,496 |
1,194,439 |
1,204,009 |
1,201,230 |
||||||||||
| Less: Allowance for credit losses |
(15,948 |
) |
(16,042 |
) |
(16,048 |
) |
(15,291 |
) |
(15,284 |
) |
|||||
|
Loans held-for-investment, net |
1,206,917 |
1,212,454 |
1,178,391 |
1,188,718 |
1,185,946 |
||||||||||
|
Other real estate owned |
521 |
- |
- |
55 |
55 |
||||||||||
| Restricted stock investments |
11,011 |
11,011 |
11,011 |
11,011 |
11,011 |
||||||||||
| Servicing assets |
7,192 |
7,404 |
7,560 |
7,673 |
7,873 |
||||||||||
| Goodwill |
2,185 |
2,185 |
2,185 |
2,185 |
2,185 |
||||||||||
| Intangible assets |
224 |
235 |
245 |
255 |
267 |
||||||||||
| Other assets |
25,284 |
26,343 |
23,581 |
24,838 |
24,799 |
||||||||||
| Total assets |
$ |
1,770,549 |
$ |
1,654,909 |
$ |
1,673,261 |
$ |
1,760,413 |
$ |
1,859,312 |
|||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||
| Noninterest-bearing |
$ |
318,807 |
$ |
281,243 |
$ |
286,766 |
$ |
305,923 |
$ |
406,033 |
|||||
| Interest-bearing |
1,128,784 |
1,059,146 |
1,074,198 |
1,147,662 |
1,143,257 |
||||||||||
| Total deposits |
1,447,591 |
1,340,389 |
1,360,964 |
1,453,585 |
1,549,290 |
||||||||||
| FHLB advances |
50,000 |
50,000 |
50,000 |
50,000 |
50,000 |
||||||||||
| Other liabilities |
22,415 |
19,260 |
21,727 |
21,114 |
31,141 |
||||||||||
| Total liabilities |
1,520,006 |
1,409,649 |
1,432,691 |
1,524,699 |
1,630,431 |
||||||||||
| Stockholders' Equity |
250,543 |
245,260 |
240,570 |
235,714 |
228,881 |
||||||||||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY |
$ |
1,770,549 |
$ |
1,654,909 |
$ |
1,673,261 |
$ |
1,760,413 |
$ |
1,859,312 |
| FIVE-QUARTER LOANS RECEIVABLE COMPONENTS (Unaudited) - Table 6 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | ||||||||||||||||
| Balance | % | Balance | % | Balance | % | Balance | % | Balance | % | |||||||||||
| Construction |
$ |
29,789 |
2.4 |
% |
$ |
33,918 |
2.8 |
% |
$ |
37,216 |
3.1 |
% |
$ |
34,886 |
2.9 |
% |
$ |
30,924 |
2.6 |
% |
| Commercial real estate |
1,029,768 |
84.2 |
% |
1,035,425 |
84.3 |
% |
1,005,765 |
84.2 |
% |
1,010,495 |
83.9 |
% |
1,005,735 |
83.7 |
% |
|||||
| Commercial and industrial |
112,588 |
9.2 |
% |
108,742 |
8.9 |
% |
101,784 |
8.5 |
% |
108,123 |
9.0 |
% |
113,374 |
9.4 |
% |
|||||
| Home mortgage |
45,673 |
3.7 |
% |
44,987 |
3.7 |
% |
44,389 |
3.7 |
% |
44,920 |
3.7 |
% |
45,452 |
3.8 |
% |
|||||
| Consumer |
537 |
0.0 |
% |
782 |
0.1 |
% |
668 |
0.1 |
% |
630 |
0.1 |
% |
616 |
0.1 |
% |
|||||
| Gross loans held-for-investment |
1,218,355 |
99.6 |
% |
1,223,854 |
99.6 |
% |
1,189,822 |
99.6 |
% |
1,199,054 |
99.6 |
% |
1,196,101 |
99.6 |
% |
|||||
| Deferred loan fees/costs, net |
4,510 |
0.4 |
% |
4,642 |
0.4 |
% |
4,617 |
0.4 |
% |
4,955 |
0.4 |
% |
5,129 |
0.4 |
% |
|||||
| Loans held-for-investment |
$ |
1,222,865 |
100.0 |
% |
$ |
1,228,496 |
100.0 |
% |
$ |
1,194,439 |
100.0 |
% |
$ |
1,204,009 |
100.0 |
% |
$ |
1,201,230 |
100.0 |
% |
| Loans held-for-sale |
$ |
198,021 |
$ |
209,144 |
$ |
198,167 |
$ |
218,258 |
$ |
219,355 |
||||||||||
| Total loans receivable |
$ |
1,420,886 |
$ |
1,437,640 |
$ |
1,392,606 |
$ |
1,422,267 |
$ |
1,420,585 |
| FIVE-QUARTER SBA LOAN PRODUCTIONS/SALES DATA (Unaudited) - Table 7 | |||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | |||||||||||||||
|
2024 |
2024 |
2024 |
2023 |
2023 |
2024 |
2023 |
|||||||||||||||
| SBA loans held-for-sale at beginning of the quarter/year |
$ |
209,144 |
$ |
198,167 |
$ |
218,258 |
$ |
219,355 |
$ |
215,083 |
$ |
218,258 |
$ |
230,431 |
|||||||
| SBA loans originated/transferred from/to held-for-investment during the quarter/year |
13,169 |
34,366 |
14,589 |
27,022 |
16,260 |
62,124 |
51,423 |
||||||||||||||
| SBA loans sold during the quarter/year |
(20,152 |
) |
(19,508 |
) |
(28,164 |
) |
(21,749 |
) |
(9,245 |
) |
(67,824 |
) |
(51,682 |
) |
|||||||
| SBA loans principal paydown/payoff, net of advance |
(4,140 |
) |
(3,881 |
) |
(6,516 |
) |
(6,370 |
) |
(2,743 |
) |
(14,537 |
) |
(10,817 |
) |
|||||||
| SBA loans held-for-sale at end of the quarter/year |
$ |
198,021 |
$ |
209,144 |
$ |
198,167 |
$ |
218,258 |
$ |
219,355 |
$ |
198,021 |
$ |
219,355 |
|||||||
| Gain on sale of SBA loans |
$ |
991 |
$ |
1,064 |
$ |
1,489 |
$ |
838 |
$ |
419 |
$ |
3,544 |
$ |
2,371 |
|||||||
| Premium on sale (weighted average) |
7.5 |
% |
8.3 |
% |
6.8 |
% |
6.7 |
% |
8.3 |
% |
8.1 |
% |
7.1 |
% |
|||||||
| SBA loan production |
$ |
23,227 |
$ |
45,126 |
$ |
18,089 |
$ |
37,821 |
$ |
24,270 |
$ |
68,353 |
$ |
70,002 |
| FIVE QUARTER SBA SERVICING ASSETS AND SERVICING FEES (Unaudited) - Table 8 | |||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | |||||||||||||||
|
2024 |
2024 |
2023 |
2023 |
2023 |
2024 |
2023 |
|||||||||||||||
| SBA servicing assets @ beginning of the quarter/year |
$ |
7,404 |
$ |
7,560 |
$ |
7,673 |
$ |
7,873 |
$ |
8,426 |
$ |
7,673 |
$ |
9,232 |
|||||||
| Newly added SBA servicing assets from SBA loans sold |
377 |
395 |
555 |
430 |
182 |
1,327 |
988 |
||||||||||||||
| Regular quarterly/annual servicing assets amortization |
(332 |
) |
(335 |
) |
(332 |
) |
(356 |
) |
(371 |
) |
(999 |
) |
(1,153 |
) |
|||||||
| SBA servicing assets amortized from SBA loans paid off/charged off |
(257 |
) |
(216 |
) |
(336 |
) |
(274 |
) |
(364 |
) |
(809 |
) |
(1,194 |
) |
|||||||
| Subtotal before impairment |
7,192 |
7,404 |
7,560 |
7,673 |
7,873 |
7,192 |
7,873 |
||||||||||||||
| Reversal of valuation allowance on servicing assets |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||
| SBA servicing assets @ the end of the quarter/year |
$ |
7,192 |
$ |
7,404 |
$ |
7,560 |
$ |
7,673 |
$ |
7,873 |
$ |
7,192 |
$ |
7,873 |
| FIVE-QUARTER DEPOSIT COMPONENTS (Unaudited) - Table 9 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | ||||||||||||||||
| Balance | % | Balance | % | Balance | % | Balance | % | Balance | % | |||||||||||
| Noninterest-bearing demand |
$ |
318,807 |
22.0 |
% |
$ |
281,243 |
21.0 |
% |
$ |
286,766 |
21.1 |
% |
$ |
305,923 |
21.1 |
% |
$ |
406,033 |
26.2 |
% |
| Interest-bearing demand |
6,590 |
0.5 |
% |
7,901 |
0.6 |
% |
6,709 |
0.5 |
% |
7,504 |
0.5 |
% |
6,395 |
0.4 |
% |
|||||
| NOW & MMDA |
246,157 |
17.0 |
% |
240,951 |
18.0 |
% |
229,642 |
16.9 |
% |
237,548 |
16.3 |
% |
227,283 |
14.7 |
% |
|||||
| Savings |
78,356 |
5.4 |
% |
80,360 |
6.0 |
% |
84,999 |
6.2 |
% |
88,689 |
6.1 |
% |
78,969 |
5.1 |
% |
|||||
| TCDs of $250K and under |
310,134 |
21.4 |
% |
295,109 |
22.0 |
% |
299,944 |
22.0 |
% |
315,920 |
21.7 |
% |
312,704 |
20.2 |
% |
|||||
| TCDs of $250K over |
342,301 |
23.7 |
% |
314,119 |
23.4 |
% |
339,482 |
25.0 |
% |
353,866 |
24.4 |
% |
373,345 |
24.1 |
% |
|||||
| Wholesale deposits |
145,246 |
10.0 |
% |
120,706 |
9.0 |
% |
113,422 |
8.3 |
% |
144,135 |
9.9 |
% |
144,561 |
9.3 |
% |
|||||
| Total Deposits |
$ |
1,447,591 |
100.0 |
% |
$ |
1,340,389 |
100.0 |
% |
$ |
1,360,964 |
100.0 |
% |
$ |
1,453,585 |
100.0 |
% |
$ |
1,549,290 |
100.0 |
% |
| Recap: | ||||||||||||||||||||
| Noninterest-bearing demand |
$ |
318,807 |
22.0 |
% |
$ |
281,243 |
21.0 |
% |
$ |
286,766 |
21.1 |
% |
$ |
305,923 |
21.0 |
% |
$ |
406,033 |
26.2 |
% |
| Interest-bearing demand |
6,590 |
0.5 |
% |
7,901 |
0.6 |
% |
6,709 |
0.5 |
% |
7,504 |
0.5 |
% |
6,395 |
0.4 |
% |
|||||
| NOW & MMDA |
222,545 |
15.4 |
% |
217,339 |
16.2 |
% |
229,642 |
16.9 |
% |
237,548 |
16.3 |
% |
227,283 |
14.7 |
% |
|||||
| Savings |
78,356 |
5.4 |
% |
80,360 |
6.0 |
% |
84,999 |
6.2 |
% |
88,689 |
6.1 |
% |
78,969 |
5.1 |
% |
|||||
| TCDs of $250K and under |
310,134 |
21.4 |
% |
295,109 |
22.0 |
% |
299,944 |
22.0 |
% |
315,920 |
21.7 |
% |
312,704 |
20.2 |
% |
|||||
| Core Deposits |
936,432 |
64.7 |
% |
881,952 |
65.8 |
% |
908,060 |
66.7 |
% |
955,584 |
65.7 |
% |
1,031,384 |
66.6 |
% |
|||||
| TCDs of $250K over |
342,301 |
23.6 |
% |
314,119 |
23.4 |
% |
339,482 |
24.9 |
% |
353,866 |
24.3 |
% |
373,345 |
24.1 |
% |
|||||
| ICS MMDA |
23,612 |
1.6 |
% |
23,612 |
1.8 |
% |
||||||||||||||
| Wholesale deposits |
145,246 |
10.0 |
% |
120,706 |
9.0 |
% |
113,422 |
8.3 |
% |
144,135 |
9.9 |
% |
144,561 |
9.3 |
% |
|||||
| Noncore Deposits |
511,159 |
35.3 |
% |
458,437 |
34.2 |
% |
452,904 |
33.3 |
% |
498,001 |
34.3 |
% |
517,906 |
33.4 |
% |
|||||
| Total Deposits |
$ |
1,447,591 |
100.0 |
% |
$ |
1,340,389 |
100.0 |
% |
$ |
1,360,964 |
100.0 |
% |
$ |
1,453,585 |
100.0 |
% |
$ |
1,549,290 |
100.0 |
% |
| FIVE-QUARTER SELECTED LOAN AND ASSET QUALITY HIGHLIGHTS (Unaudited) - Table 10 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||
| 3rd Qtr. | 2nd Qtr. | 1st Qtr. | 4th Qtr. | 3rd Qtr. | |||||||||||
|
2024 |
2024 |
2024 |
2023 |
2023 |
|||||||||||
| Allowance for Credit Losses | |||||||||||||||
| Balance at beginning of period |
$ |
16,042 |
$ |
16,048 |
$ |
15,291 |
$ |
15,284 |
$ |
15,626 |
|||||
| CECL transition provision |
- |
- |
- |
||||||||||||
| Provision for credit losses |
- |
200 |
743 |
- |
- |
||||||||||
| Charge-offs |
(108 |
) |
(257 |
) |
(2 |
) |
(350 |
) |
|||||||
| Recoveries |
14 |
51 |
14 |
9 |
8 |
||||||||||
| Balance at the end of period |
$ |
15,948 |
$ |
16,042 |
$ |
16,048 |
$ |
15,291 |
$ |
15,284 |
|||||
| Nonperforming Assets:¹ | |||||||||||||||
| Over 90 days still accruing |
$ |
994 |
$ |
- |
$ |
1,605 |
$ |
399 |
$ |
2 |
|||||
| Nonaccrual loans |
7,043 |
5,797 |
2,842 |
2,030 |
616 |
||||||||||
| Total nonperforming loans |
8,037 |
5,797 |
4,447 |
2,429 |
618 |
||||||||||
| Other real estate owned |
$ |
521 |
- |
- |
55 |
55 |
|||||||||
| Total nonperforming assets |
$ |
8,558 |
$ |
5,797 |
$ |
4,447 |
$ |
2,484 |
$ |
673 |
|||||
| Classified Assets:¹ | |||||||||||||||
| Substandard |
$ |
15,980 |
$ |
12,762 |
$ |
11,912 |
$ |
11,063 |
$ |
10,105 |
|||||
| Doubtful |
- |
- |
- |
- |
- |
||||||||||
| Loss | |||||||||||||||
| Total classified loans |
$ |
15,980 |
$ |
12,762 |
$ |
11,912 |
$ |
11,063 |
$ |
10,105 |
|||||
| Other real estate owned |
$ |
521 |
- |
- |
55 |
55 |
|||||||||
| Total classified assets |
$ |
16,501 |
$ |
12,762 |
$ |
11,912 |
$ |
11,118 |
$ |
10,160 |
|||||
| Performing modified loans:¹ |
$ |
452 |
$ |
464 |
$ |
3,811 |
$ |
3,336 |
$ |
3,336 |
|||||
| Delinquent Loans:¹ | |||||||||||||||
| Loans 30-89 days past due |
$ |
4,308 |
$ |
8,613 |
$ |
16,907 |
$ |
5,981 |
$ |
10,620 |
|||||
| 90 days or more past due and still accruing |
994 |
- |
1,605 |
399 |
2 |
||||||||||
| Nonaccrual |
7,043 |
5,797 |
2,842 |
2,030 |
616 |
||||||||||
| Total delinquent loans |
$ |
12,345 |
$ |
14,410 |
$ |
21,354 |
$ |
8,410 |
$ |
11,238 |
|||||
| Asset Quality Ratios: | |||||||||||||||
| Net (recoveries) charge-offs to average loans² |
0.03 |
% |
0.06 |
% |
0.00 |
% |
0.00 |
% |
0.10 |
% |
|||||
| Nonaccrual loans to loans held-for-investment |
0.58 |
% |
0.47 |
% |
0.24 |
% |
0.17 |
% |
0.05 |
% |
|||||
| Nonperforming loans to loans held-for-investment |
0.66 |
% |
0.47 |
% |
0.37 |
% |
0.20 |
% |
0.05 |
% |
|||||
| Nonperforming assets to total assets |
0.48 |
% |
0.35 |
% |
0.27 |
% |
0.14 |
% |
0.04 |
% |
|||||
| Classified loans to loans held-for-investment |
1.31 |
% |
1.04 |
% |
1.00 |
% |
0.92 |
% |
0.84 |
% |
|||||
| Classified loans to Tier 1 and ACL |
6.05 |
% |
4.93 |
% |
4.69 |
% |
4.45 |
% |
4.18 |
% |
|||||
| Classified assets to total assets |
0.93 |
% |
0.77 |
% |
0.71 |
% |
0.63 |
% |
0.55 |
% |
|||||
| Classified assets to Tier 1 and ACL |
6.25 |
% |
4.93 |
% |
4.69 |
% |
4.47 |
% |
4.20 |
% |
|||||
| ACL to loans held-for-investment |
1.30 |
% |
1.31 |
% |
1.34 |
% |
1.27 |
% |
1.27 |
% |
|||||
| ACL to nonaccrual loans |
226.44 |
% |
276.73 |
% |
564.67 |
% |
753.25 |
% |
2481.17 |
% |
|||||
| ACL to nonperforming loans |
198.43 |
% |
276.73 |
% |
360.87 |
% |
629.52 |
% |
2473.14 |
% |
|||||
| ACL to nonperforming assets |
186.35 |
% |
276.73 |
% |
360.87 |
% |
615.58 |
% |
2271.03 |
% |
|||||
| Texas ratio ³ |
3.24 |
% |
2.24 |
% |
1.75 |
% |
1.00 |
% |
0.28 |
% |
| 1 | Net of SBA guaranteed balance |
| 2 | Includes loans held-for-sale |
| 3 | Nonperforming assets divided by tangible common equity and ACL |
|
FIVE-QUARTER CAPITAL RATIOS (Unaudited) - Table 11 |
|||||||||||||||||||
| Well Capitalized | Adequately Capitalized | September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||
| Regulatory | BASEL III | ||||||||||||||||||
| Requirement | Fully Phased In |
2024 |
2024 |
2024 |
2023 |
2023 |
|||||||||||||
| Leverage ratio | |||||||||||||||||||
| Company |
N/A |
N/A |
14.64 |
% |
14.51 |
% |
13.85 |
% |
12.98 |
% |
12.53 |
% |
|||||||
| Bank |
5.00 |
% |
4.00 |
% |
14.58 |
% |
14.45 |
% |
13.84 |
% |
12.96 |
% |
12.50 |
% |
|||||
| Common equity tier 1 risk-based capital ratio | |||||||||||||||||||
| Company |
N/A |
N/A |
19.03 |
% |
18.36 |
% |
18.67 |
% |
18.08 |
% |
17.61 |
% |
|||||||
| Bank |
6.50 |
% |
7.00 |
% |
18.95 |
% |
18.28 |
% |
18.65 |
% |
18.05 |
% |
17.58 |
% |
|||||
| Tier 1 risk-based capital ratio | |||||||||||||||||||
| Company |
N/A |
N/A |
19.03 |
% |
18.36 |
% |
18.67 |
% |
18.08 |
% |
17.61 |
% |
|||||||
| Bank |
8.00 |
% |
8.50 |
% |
18.95 |
% |
18.28 |
% |
18.65 |
% |
18.05 |
% |
17.57 |
% |
|||||
| Total risk-based capital ratio | |||||||||||||||||||
| Company |
N/A |
N/A |
20.26 |
% |
19.59 |
% |
19.92 |
% |
19.30 |
% |
18.83 |
% |
|||||||
| Bank |
10.00 |
% |
10.50 |
% |
20.18 |
% |
19.50 |
% |
19.91 |
% |
19.27 |
% |
18.79 |
% |
|||||
| Tangible common equity/total assets |
14.03 |
% |
14.70 |
% |
14.25 |
% |
13.27 |
% |
12.19 |
% |
|||||||||
| Tangible common equity per share |
$ |
23.44 |
$ |
22.94 |
$ |
22.49 |
$ |
22.03 |
$ |
21.39 |
| FIVE-QUARTER MARGIN ANALYSIS (Unaudited) -Table 12 | |||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||||||||||||||||||||||
| Avg Balance | Interest | Yield | Avg Balance | Interest | Yield | Avg Balance | Interest | Yield | Avg Balance | Interest | Yield | Avg Balance | Interest | Yield | |||||||||||||||||||||
| Number of Days in the Period | Checked | ||||||||||||||||||||||||||||||||||
| INTEREST-EARNING ASSETS | |||||||||||||||||||||||||||||||||||
| Loans Receivable¹ |
$ |
1,427,123 |
$ |
25,357 |
7.07 |
% |
$ |
1,418,458 |
$ |
24,887 |
7.06 |
% |
$ |
1,415,924 |
$ |
24,906 |
7.07 |
% |
$ |
1,410,971 |
$ |
24,926 |
7.01 |
% |
$ |
1,417,148 |
$ |
24,734 |
6.92 |
% |
|||||
| Investment securities ² |
68,198 |
734 |
4.28 |
% |
70,052 |
723 |
4.15 |
% |
59,554 |
575 |
3.88 |
% |
60,094 |
563 |
3.72 |
% |
64,587 |
577 |
3.54 |
% |
|||||||||||||||
| Interest-earning deposits at the FRB and other banks |
158,127 |
2,139 |
5.38 |
% |
146,956 |
1,995 |
5.46 |
% |
207,155 |
2,817 |
5.47 |
% |
288,769 |
3,973 |
5.46 |
% |
293,081 |
3,994 |
5.41 |
% |
|||||||||||||||
| Other earning assets |
11,011 |
200 |
7.23 |
% |
11,011 |
200 |
7.31 |
% |
11,011 |
214 |
7.82 |
% |
11,011 |
212 |
7.64 |
% |
11,011 |
196 |
7.06 |
% |
|||||||||||||||
| Total interest-earning assets ² |
1,664,459 |
28,430 |
6.80 |
% |
1,646,477 |
27,805 |
6.79 |
% |
1,693,644 |
28,512 |
6.77 |
% |
1,770,845 |
29,674 |
6.65 |
% |
1,785,827 |
29,501 |
6.55 |
% |
|||||||||||||||
| NONINTEREST-EARNING ASSETS | |||||||||||||||||||||||||||||||||||
| Cash and due from banks |
12,527 |
12,907 |
12,172 |
12,567 |
13,045 |
||||||||||||||||||||||||||||||
| Other noninterest-earning assets |
34,395 |
33,263 |
31,967 |
32,985 |
33,331 |
||||||||||||||||||||||||||||||
| Total noninterest-earning assets |
46,922 |
46,170 |
44,139 |
45,552 |
46,376 |
||||||||||||||||||||||||||||||
| Less: Allowance for credit losses |
(16,024 |
) |
(16,058 |
) |
(15,322 |
) |
(15,291 |
) |
(15,622 |
) |
|||||||||||||||||||||||||
| TOTAL ASSETS |
$ |
1,695,357 |
$ |
1,676,589 |
$ |
1,722,461 |
$ |
1,801,106 |
$ |
1,816,581 |
|||||||||||||||||||||||||
| INTEREST-BEARING DEPOSITS | |||||||||||||||||||||||||||||||||||
| Interest-bearing demand |
$ |
11,007 |
$ |
6 |
0.22 |
% |
$ |
11,864 |
$ |
6 |
0.20 |
% |
$ |
12,680 |
$ |
6 |
0.19 |
% |
$ |
12,657 |
$ |
7 |
0.22 |
% |
$ |
12,347 |
$ |
6 |
0.19 |
% |
|||||
| Money market |
236,834 |
2,555 |
4.29 |
% |
230,261 |
2,272 |
3.97 |
% |
229,441 |
2,285 |
4.01 |
% |
222,289 |
2,158 |
3.85 |
% |
211,152 |
1,907 |
3.58 |
% |
|||||||||||||||
| Savings |
79,289 |
689 |
3.46 |
% |
82,215 |
700 |
3.42 |
% |
84,854 |
724 |
3.43 |
% |
82,403 |
664 |
3.20 |
% |
70,579 |
494 |
2.78 |
% |
|||||||||||||||
| Time deposits |
767,607 |
9,536 |
4.94 |
% |
759,954 |
9,296 |
4.92 |
% |
801,122 |
9,523 |
4.78 |
% |
824,900 |
9,515 |
4.58 |
% |
820,335 |
8,916 |
4.31 |
% |
|||||||||||||||
| Total interest-bearing deposits |
1,094,737 |
12,786 |
4.65 |
% |
1,084,294 |
12,274 |
4.55 |
% |
1,128,097 |
12,538 |
4.47 |
% |
1,142,249 |
12,344 |
4.29 |
% |
1,114,413 |
11,323 |
4.03 |
% |
|||||||||||||||
| Borrowings |
50,000 |
118 |
0.94 |
% |
50,013 |
117 |
0.94 |
% |
50,000 |
117 |
0.94 |
% |
50,001 |
118 |
0.94 |
% |
50,001 |
119 |
0.94 |
% |
|||||||||||||||
| Total interest-bearing liabilities |
1,144,737 |
12,904 |
4.48 |
% |
1,134,307 |
12,391 |
4.39 |
% |
1,178,097 |
12,655 |
4.32 |
% |
1,192,250 |
12,462 |
4.15 |
% |
1,164,414 |
11,442 |
3.90 |
% |
|||||||||||||||
| Noninterest-bearing deposits |
280,670 |
279,765 |
284,867 |
350,656 |
397,791 |
||||||||||||||||||||||||||||||
| Other liabilities |
21,376 |
19,287 |
21,112 |
25,602 |
27,519 |
||||||||||||||||||||||||||||||
| Stockholders' equity |
248,574 |
243,230 |
238,385 |
232,598 |
226,857 |
||||||||||||||||||||||||||||||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY |
$ |
1,695,357 |
$ |
1,676,589 |
$ |
1,722,461 |
$ |
1,801,106 |
$ |
1,816,581 |
|||||||||||||||||||||||||
| Net interest income² |
$ |
15,526 |
$ |
15,414 |
$ |
15,857 |
$ |
17,212 |
$ |
18,059 |
|||||||||||||||||||||||||
| Net interest spread |
2.32 |
% |
2.40 |
% |
2.45 |
% |
2.50 |
% |
2.65 |
% |
|||||||||||||||||||||||||
| Effect of noninterest-bearing sources |
1.39 |
% |
1.37 |
% |
1.32 |
% |
1.36 |
% |
1.36 |
% |
|||||||||||||||||||||||||
| Net interest margin² |
3.71 |
% |
3.77 |
% |
3.77 |
% |
3.86 |
% |
4.01 |
% |
|||||||||||||||||||||||||
| Cost of deposits |
$ |
1,375,407 |
$ |
12,786 |
3.70 |
% |
$ |
1,364,059 |
$ |
12,274 |
3.62 |
% |
$ |
1,412,964 |
$ |
12,538 |
3.57 |
% |
$ |
1,492,905 |
$ |
12,344 |
3.28 |
% |
$ |
1,512,204 |
$ |
11,323 |
2.97 |
% |
|||||
| Cost of funds |
$ |
1,425,407 |
$ |
12,904 |
3.60 |
% |
$ |
1,414,072 |
$ |
12,391 |
3.52 |
% |
$ |
1,462,964 |
$ |
12,655 |
3.48 |
% |
$ |
1,542,906 |
$ |
12,462 |
3.20 |
% |
$ |
1,562,205 |
$ |
11,442 |
2.91 |
% |
| 1 | Loan held-for-investment, plus loans held-for-sale |
| 2 | Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate |
|
FIVE-QUARTER COMPONENTS OF YIELD ON LOANS (Unaudited) - Table 13 |
|||||||||||||||||||||||||
|
(Dollars in thousands) |
|||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||
|
September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
|||||||||||||||||||||
| Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||
| Contractual yield |
$ |
24,544 |
6.84 |
% |
$ |
24,271 |
6.88 |
% |
$ |
24,138 |
6.86 |
% |
$ |
24,235 |
6.81 |
% |
$ |
23,932 |
6.70 |
% |
|||||
| SBA discount accretion |
806 |
0.23 |
% |
736 |
0.21 |
% |
926 |
0.26 |
% |
845 |
0.24 |
% |
921 |
0.25 |
% |
||||||||||
| Prepayment penalties and late fees |
184 |
0.05 |
% |
36 |
0.01 |
% |
67 |
0.01 |
% |
40 |
0.01 |
% |
18 |
0.01 |
% |
||||||||||
| Amortization of net deferred costs |
(177 |
) |
-0.05 |
% |
(156 |
) |
-0.04 |
% |
(225 |
) |
-0.06 |
% |
(194 |
) |
-0.05 |
% |
(137 |
) |
-0.04 |
% |
|||||
| As reported yield on loans |
$ |
25,357 |
7.07 |
% |
$ |
24,887 |
7.06 |
% |
$ |
24,906 |
7.07 |
% |
$ |
24,926 |
7.01 |
% |
$ |
24,734 |
6.92 |
% |
| MARGIN ANALYSIS (Unaudited) - Table 14 | ||||||||||||||
| (Dollars in thousands) | ||||||||||||||
| Six Months Ended | ||||||||||||||
| September 30, 2024 | September 30,2023 | |||||||||||||
| Avg Balance | Interest | Yield | Avg Balance | Interest | Yield | |||||||||
| Number of Days in the Period | ||||||||||||||
| INTEREST-EARNING ASSETS | ||||||||||||||
| Loans Receivable ¹ |
$ |
1,420,526 |
$ |
75,150 |
7.07 |
% |
$ |
1,454,301 |
$ |
73,774 |
6.78 |
% |
||
| Investment securities ² |
65,943 |
2,032 |
4.12 |
% |
67,543 |
1,749 |
3.46 |
% |
||||||
| Interest-earning deposits at the FRB and other banks |
170,700 |
6,951 |
5.44 |
% |
247,712 |
9,468 |
5.11 |
% |
||||||
| Other earning assets |
11,011 |
614 |
7.45 |
% |
10,655 |
523 |
6.56 |
% |
||||||
| Total interest-earning assets ² |
1,668,180 |
84,747 |
6.79 |
% |
1,780,211 |
85,514 |
6.42 |
% |
||||||
| NONINTEREST-EARNING ASSETS | ||||||||||||||
| Cash and due from banks |
12,535 |
13,362 |
||||||||||||
| Other noninterest-earning assets |
32,885 |
34,634 |
||||||||||||
| Total noninterest-earning assets |
45,420 |
47,996 |
||||||||||||
| Less: Allowance for credit losses |
(15,802 |
) |
(15,601 |
) |
||||||||||
| TOTAL ASSETS |
$ |
1,697,798 |
$ |
1,812,606 |
||||||||||
| INTEREST-BEARING DEPOSITS | ||||||||||||||
| Interest-bearing demand |
$ |
11,848 |
$ |
18 |
0.20 |
% |
$ |
14,943 |
$ |
22 |
0.20 |
% |
||
| Money market |
232,195 |
7,112 |
4.09 |
% |
211,887 |
4,789 |
3.02 |
% |
||||||
| Savings |
82,109 |
2,113 |
3.44 |
% |
63,369 |
983 |
2.07 |
% |
||||||
| Time deposits |
776,196 |
28,355 |
4.88 |
% |
818,953 |
23,394 |
3.82 |
% |
||||||
| Total interest-bearing deposits |
1,102,348 |
37,598 |
4.56 |
% |
1,109,152 |
29,188 |
3.52 |
% |
||||||
| Borrowings |
50,004 |
352 |
0.94 |
% |
50,000 |
352 |
0.94 |
% |
||||||
| Total interest-bearing liabilities |
1,152,352 |
37,950 |
4.40 |
% |
1,159,152 |
29,540 |
3.41 |
% |
||||||
| Noninterest-bearing deposits |
281,763 |
411,370 |
||||||||||||
| Other liabilities |
20,268 |
21,808 |
||||||||||||
| Stockholders' equity |
243,415 |
220,276 |
||||||||||||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY |
$ |
1,697,798 |
$ |
1,812,606 |
||||||||||
| Net interest income² |
$ |
46,797 |
$ |
55,974 |
||||||||||
| Net interest spread |
2.39 |
% |
3.01 |
% |
||||||||||
| Effect of noninterest-bearing sources |
1.36 |
% |
1.19 |
% |
||||||||||
| Net interest margin² |
3.75 |
% |
4.20 |
% |
||||||||||
| Cost of deposits |
$ |
1,384,111 |
$ |
37,598 |
3.63 |
% |
$ |
1,520,522 |
$ |
29,188 |
2.57 |
% |
||
| Cost of funds |
$ |
1,434,115 |
$ |
37,950 |
3.53 |
% |
$ |
1,570,522 |
$ |
29,540 |
2.51 |
% |
| 1 | Loan held-for-investment, plus loans held-for-sale |
| 2 | Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate |
| COMPONENTS OF YIELD ON LOANS (Unaudited) - Table 15 | ||||||||||
| (Dollars in thousands) | ||||||||||
| Nine Months Ended | ||||||||||
| September 30, 2024 | September 30, 2023 | |||||||||
| Amount | Yield | Amount | Yield | |||||||
| Contractual yield |
$ |
72,953 |
6.86 |
% |
$ |
71,342 |
6.56 |
% |
||
| SBA discount accretion |
2,468 |
0.23 |
% |
2,982 |
0.27 |
% |
||||
| Prepayment penalties and late fees |
287 |
0.03 |
% |
108 |
0.01 |
% |
||||
| Amortization of net deferred costs |
(558 |
) |
-0.05 |
% |
(658 |
) |
-0.06 |
% |
||
| As reported yield on loans |
$ |
75,150 |
7.07 |
% |
$ |
73,774 |
6.78 |
% |
Richard Koh, EVP & CFO
(323) 988-3037
[email protected]