(Commission File Number) | (I.R.S. Employer Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
104 | The cover page from this Current Report on Form 8-K in Inline XBRL (Extensible Business Reporting Language) |
CITIZENS COMMUNITY BANCORP, INC. | ||||||||||||||
Date: October 25, 2021 | By: | /s/ James S. Broucek | ||||||||||||
James S. Broucek | ||||||||||||||
Chief Financial Officer |
September 30, 2021 | June 30, 2021 | December 31, 2020 | September 30, 2020 | |||||||||||||||||||||||
Originated loans, net of deferred fees and costs | $ | 1,006,159 | $ | 877,534 | $ | 835,769 | $ | 777,340 | ||||||||||||||||||
SBA PPP loans, net of deferred fees | 29,753 | 71,508 | 120,711 | 135,177 | ||||||||||||||||||||||
Acquired loans, net of unamortized discount | 212,742 | 232,516 | 281,101 | 317,622 | ||||||||||||||||||||||
Loans, end of period | $ | 1,248,654 | $ | 1,181,558 | $ | 1,237,581 | $ | 1,230,139 | ||||||||||||||||||
SBA PPP loans, net of deferred fees | (29,753) | (71,508) | (120,711) | (135,177) | ||||||||||||||||||||||
Loans, net of SBA PPP loans and deferred fees | $ | 1,218,901 | $ | 1,110,050 | $ | 1,116,870 | $ | 1,094,962 | ||||||||||||||||||
Allowance for loan losses allocated to originated loans | $ | 15,505 | $ | 15,059 | $ | 14,819 | $ | 12,809 | ||||||||||||||||||
Allowance for loan losses allocated to other loans | 1,327 | 1,786 | 2,224 | 2,027 | ||||||||||||||||||||||
Allowance for loan losses | $ | 16,832 | $ | 16,845 | $ | 17,043 | $ | 14,836 | ||||||||||||||||||
ALL as a percentage of loans, end of period | 1.35 | % | 1.43 | % | 1.38 | % | 1.21 | % | ||||||||||||||||||
ALL as a percentage of loans, net of SBA PPP loans and deferred fees | 1.38 | % | 1.52 | % | 1.53 | % | 1.35 | % | ||||||||||||||||||
ALL allocated to originated loans as a percentage of originated loans, net of deferred fees and costs | 1.54 | % | 1.72 | % | 1.77 | % | 1.65 | % | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | September 30, 2020 | ||||||||||||||||||||||||||||
Special mention loan balances | $ | 2,548 | $ | 12,308 | $ | 13,659 | $ | 6,672 | $ | 7,777 | ||||||||||||||||||||||
Substandard loan balances | 27,137 | 25,890 | 26,064 | 28,541 | 32,922 | |||||||||||||||||||||||||||
Criticized loans, end of period | $ | 29,685 | $ | 38,198 | $ | 39,723 | $ | 35,213 | $ | 40,699 |
Three months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Interest Income | Net Interest Margin | Net Interest Income | Net Interest Margin | Net Interest Income | Net Interest Margin | Net Interest Income | Net Interest Margin | Net Interest Income | Net Interest Margin | |||||||||||||||||||||||||||||||||||||||||||||||||||||
As reported | $ | 13,688 | 3.34 | % | $ | 12,831 | 3.22 | % | $ | 12,764 | 3.31 | % | $ | 13,372 | 3.51 | % | $ | 11,909 | 3.11 | % | ||||||||||||||||||||||||||||||||||||||||||
Less non-accretable difference realized as interest from payoff of purchased credit impaired (“PCI”) loans | $ | (8) | — | % | $ | (37) | (0.01) | % | $ | (58) | (0.02) | % | $ | (324) | (0.08) | % | $ | (130) | (0.03) | % | ||||||||||||||||||||||||||||||||||||||||||
Less accelerated accretion from payoff of certain PCI loans with transferred non-accretable differences | $ | (12) | — | % | $ | — | — | % | $ | (90) | (0.02) | % | $ | (872) | (0.23) | % | $ | — | — | % | ||||||||||||||||||||||||||||||||||||||||||
Less scheduled accretion interest | $ | (261) | (0.06) | % | $ | (265) | (0.07) | % | $ | (266) | (0.07) | % | $ | (252) | (0.07) | % | $ | (276) | (0.07) | % | ||||||||||||||||||||||||||||||||||||||||||
Without loan purchase accretion | $ | 13,407 | 3.28 | % | $ | 12,529 | 3.14 | % | $ | 12,350 | 3.20 | % | $ | 11,924 | 3.13 | % | $ | 11,503 | 3.01 | % | ||||||||||||||||||||||||||||||||||||||||||
Less SBA PPP net loan fee accretion | $ | (1,878) | (0.46) | % | $ | (1,309) | (0.33) | % | $ | (1,750) | (0.45) | % | $ | (985) | (0.26) | % | $ | (643) | (0.17) | % | ||||||||||||||||||||||||||||||||||||||||||
Without SBA PPP purchase and net loan fee accretion | $ | 11,529 | 2.82 | % | $ | 11,220 | 2.81 | % | $ | 10,600 | 2.75 | % | $ | 10,939 | 2.87 | % | $ | 10,860 | 2.84 | % |
2020 Originations | 2021 Originations | Total | ||||||||||||||||||||||||||||||||||||
Balance | Net Deferred Fee Income | Balance | Net Deferred Fee Income | Balance | Net Deferred Fee Income | |||||||||||||||||||||||||||||||||
SBA PPP Loans, December 31, 2020 | $ | 123,702 | $ | 2,991 | $ | — | $ | — | $ | 123,702 | $ | 2,991 | ||||||||||||||||||||||||||
2021 SBA PPP Loan Originations | — | — | 47,467 | 1,770 | 47,467 | 1,770 | ||||||||||||||||||||||||||||||||
Less: 2021 SBA PPP Loan Forgiveness and Fee Accretion | (52,238) | (1,750) | — | — | (52,238) | (1,750) | ||||||||||||||||||||||||||||||||
SBA PPP Loans, March 31, 2021 | 71,464 | 1,241 | 47,467 | 1,770 | 118,931 | 3,011 | ||||||||||||||||||||||||||||||||
2021 SBA PPP Loan Originations | — | — | 8,323 | 1,715 | 8,323 | 1,715 | ||||||||||||||||||||||||||||||||
Less: 2021 SBA PPP Loan Forgiveness and Fee Accretion | (50,057) | (933) | (2,272) | (376) | (52,329) | (1,309) | ||||||||||||||||||||||||||||||||
SBA PPP Loans, June 30, 2021 | 21,407 | 308 | 53,518 | $ | 3,109 | 74,925 | 3,417 | |||||||||||||||||||||||||||||||
2021 SBA PPP Loan Originations | — | — | 64 | 9 | 64 | 9 | ||||||||||||||||||||||||||||||||
Less: 2021 SBA PPP Loan Forgiveness and Fee Accretion | (18,286) | (279) | (25,402) | (1,599) | (43,688) | (1,878) | ||||||||||||||||||||||||||||||||
SBA PPP Loans, September 30, 2021 | $ | 3,121 | $ | 29 | $ | 28,180 | $ | 1,519 | $ | 31,301 | $ | 1,548 |
September 30, 2021 (unaudited) | June 30, 2021 (unaudited) | December 31, 2020 (audited) | September 30, 2020 (unaudited) | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 102,341 | $ | 128,440 | $ | 119,440 | $ | 115,474 | ||||||||||||||||||
Other interest-bearing deposits | 1,512 | 1,512 | 3,752 | 3,752 | ||||||||||||||||||||||
Securities available for sale “AFS” | 234,425 | 243,746 | 144,233 | 150,908 | ||||||||||||||||||||||
Securities held to maturity “HTM” | 67,739 | 59,582 | 43,551 | 16,927 | ||||||||||||||||||||||
Equity securities with readily determinable fair value | 327 | 297 | 200 | 187 | ||||||||||||||||||||||
Other investments | 14,965 | 14,966 | 14,948 | 15,075 | ||||||||||||||||||||||
Loans receivable | 1,248,654 | 1,181,558 | 1,237,581 | 1,230,139 | ||||||||||||||||||||||
Allowance for loan losses | (16,832) | (16,845) | (17,043) | (14,836) | ||||||||||||||||||||||
Loans receivable, net | 1,231,822 | 1,164,713 | 1,220,538 | 1,215,303 | ||||||||||||||||||||||
Loans held for sale | 1,675 | 3,109 | 3,075 | 4,938 | ||||||||||||||||||||||
Mortgage servicing rights, net | 4,082 | 3,862 | 3,252 | 3,498 | ||||||||||||||||||||||
Office properties and equipment, net | 21,730 | 21,121 | 21,165 | 21,607 | ||||||||||||||||||||||
Accrued interest receivable | 4,882 | 4,898 | 5,652 | 5,829 | ||||||||||||||||||||||
Intangible assets | 4,297 | 4,696 | 5,494 | 5,893 | ||||||||||||||||||||||
Goodwill | 31,498 | 31,498 | 31,498 | 31,498 | ||||||||||||||||||||||
Foreclosed and repossessed assets, net | 4 | 145 | 197 | 812 | ||||||||||||||||||||||
Bank owned life insurance (“BOLI”) | 24,149 | 23,991 | 23,684 | 23,514 | ||||||||||||||||||||||
Other assets | 8,029 | 7,896 | 8,416 | 7,378 | ||||||||||||||||||||||
TOTAL ASSETS | $ | 1,753,477 | $ | 1,714,472 | $ | 1,649,095 | $ | 1,622,593 | ||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Deposits | $ | 1,408,315 | $ | 1,371,226 | $ | 1,295,256 | $ | 1,270,778 | ||||||||||||||||||
Federal Home Loan Bank (“FHLB”) advances | 111,512 | 111,496 | 123,498 | 124,491 | ||||||||||||||||||||||
Other borrowings | 58,400 | 58,380 | 58,328 | 58,297 | ||||||||||||||||||||||
Other liabilities | 9,324 | 9,354 | 11,449 | 11,704 | ||||||||||||||||||||||
Total liabilities | 1,587,551 | 1,550,456 | 1,488,531 | 1,465,270 | ||||||||||||||||||||||
Stockholders’ equity: | ||||||||||||||||||||||||||
Common stock— $0.01 par value, authorized 30,000,000; 10,518,885, 10,696,075; 11,056,349 and 11,154,645 shares issued and outstanding, respectively | 105 | 107 | 111 | 112 | ||||||||||||||||||||||
Additional paid-in capital | 119,929 | 121,732 | 126,154 | 127,068 | ||||||||||||||||||||||
Retained earnings | 44,660 | 40,117 | 32,809 | 29,239 | ||||||||||||||||||||||
Accumulated other comprehensive income | 1,232 | 2,060 | 1,490 | 904 | ||||||||||||||||||||||
Total stockholders’ equity | 165,926 | 164,016 | 160,564 | 157,323 | ||||||||||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,753,477 | $ | 1,714,472 | $ | 1,649,095 | $ | 1,622,593 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, 2021 (unaudited) | June 30, 2021 (unaudited) | September 30, 2020 (unaudited) | September 30, 2021 (unaudited) | September 30, 2020 (unaudited) | ||||||||||||||||||||||||||||
Interest and dividend income: | ||||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 14,537 | $ | 13,960 | $ | 14,154 | $ | 43,014 | $ | 44,300 | ||||||||||||||||||||||
Interest on investments | 1,638 | 1,518 | 1,064 | 4,260 | 3,712 | |||||||||||||||||||||||||||
Total interest and dividend income | 16,175 | 15,478 | 15,218 | 47,274 | 48,012 | |||||||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||||||
Interest on deposits | 1,354 | 1,521 | 2,255 | 4,589 | 8,042 | |||||||||||||||||||||||||||
Interest on FHLB and FRB borrowed funds | 389 | 384 | 430 | 1,183 | 1,386 | |||||||||||||||||||||||||||
Interest on other borrowed funds | 744 | 742 | 624 | 2,217 | 1,701 | |||||||||||||||||||||||||||
Total interest expense | 2,487 | 2,647 | 3,309 | 7,989 | 11,129 | |||||||||||||||||||||||||||
Net interest income before provision for loan losses | 13,688 | 12,831 | 11,909 | 39,285 | 36,883 | |||||||||||||||||||||||||||
Provision for loan losses | — | — | 1,500 | — | 5,250 | |||||||||||||||||||||||||||
Net interest income after provision for loan losses | 13,688 | 12,831 | 10,409 | 39,285 | 31,633 | |||||||||||||||||||||||||||
Non-interest income: | ||||||||||||||||||||||||||||||||
Service charges on deposit accounts | 463 | 395 | 431 | 1,256 | 1,336 | |||||||||||||||||||||||||||
Interchange income | 600 | 647 | 556 | 1,776 | 1,509 | |||||||||||||||||||||||||||
Loan servicing income | 842 | 825 | 1,144 | 2,560 | 3,144 | |||||||||||||||||||||||||||
Gain on sale of loans | 1,014 | 1,522 | 1,987 | 4,131 | 4,585 | |||||||||||||||||||||||||||
Loan fees and service charges | 118 | 151 | 320 | 547 | 1,041 | |||||||||||||||||||||||||||
Insurance commission income | — | — | — | — | 474 | |||||||||||||||||||||||||||
Net gains (losses) on investment securities | 73 | 37 | (1) | 344 | 97 | |||||||||||||||||||||||||||
Net gain on sale of acquired business lines | — | — | 180 | — | 432 | |||||||||||||||||||||||||||
Settlement proceeds | — | — | — | — | 131 | |||||||||||||||||||||||||||
Other | 338 | 216 | 445 | 801 | 929 | |||||||||||||||||||||||||||
Total non-interest income | 3,448 | 3,793 | 5,062 | 11,415 | 13,678 | |||||||||||||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||||||||
Compensation and related benefits | 5,733 | 5,473 | 5,538 | 16,802 | 16,881 | |||||||||||||||||||||||||||
Occupancy | 1,313 | 1,314 | 1,396 | 3,943 | 4,106 | |||||||||||||||||||||||||||
Data processing | 1,558 | 1,396 | 1,331 | 4,296 | 3,735 | |||||||||||||||||||||||||||
Amortization of intangible assets | 399 | 399 | 399 | 1,197 | 1,223 | |||||||||||||||||||||||||||
Mortgage servicing rights expense, net | 37 | 441 | 603 | 28 | 2,330 | |||||||||||||||||||||||||||
Advertising, marketing and public relations | 220 | 194 | 260 | 576 | 802 | |||||||||||||||||||||||||||
FDIC premium assessment | 148 | 82 | 188 | 395 | 436 | |||||||||||||||||||||||||||
Professional services | 347 | 381 | 434 | 1,250 | 1,391 | |||||||||||||||||||||||||||
Gains on repossessed assets, net | (3) | (29) | (105) | (150) | (195) | |||||||||||||||||||||||||||
Other | 568 | 547 | 680 | 1,670 | 2,138 | |||||||||||||||||||||||||||
Total non-interest expense | 10,320 | 10,198 | 10,724 | 30,007 | 32,847 | |||||||||||||||||||||||||||
Income before provision for income taxes | 6,816 | 6,426 | 4,747 | 20,693 | 12,464 | |||||||||||||||||||||||||||
Provision for income taxes | 1,819 | 1,720 | 1,267 | 5,484 | 3,309 | |||||||||||||||||||||||||||
Net income attributable to common stockholders | $ | 4,997 | $ | 4,706 | $ | 3,480 | $ | 15,209 | $ | 9,155 | ||||||||||||||||||||||
Per share information: | ||||||||||||||||||||||||||||||||
Basic earnings | $ | 0.47 | $ | 0.44 | $ | 0.31 | $ | 1.41 | $ | 0.82 | ||||||||||||||||||||||
Diluted earnings | $ | 0.47 | $ | 0.44 | $ | 0.31 | $ | 1.41 | $ | 0.82 | ||||||||||||||||||||||
Cash dividends paid | $ | — | $ | — | $ | — | $ | 0.23 | $ | 0.21 | ||||||||||||||||||||||
Book value per share at end of period | $ | 15.77 | $ | 15.33 | $ | 14.10 | $ | 15.77 | $ | 14.10 | ||||||||||||||||||||||
Tangible book value per share at end of period (non-GAAP) | $ | 12.37 | $ | 11.95 | $ | 10.75 | $ | 12.37 | $ | 10.75 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, 2021 | June 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||||||||||||||
GAAP pretax income | $ | 6,816 | $ | 6,426 | $ | 4,747 | $ | 20,693 | $ | 12,464 | ||||||||||||||||||||||
Net gain on sale of acquired business lines (1) | — | — | (180) | — | (432) | |||||||||||||||||||||||||||
Settlement proceeds (2) | — | — | — | — | (131) | |||||||||||||||||||||||||||
FHLB borrowings prepayment fee (3) | — | — | — | 102 | — | |||||||||||||||||||||||||||
Pretax income as adjusted (4) | 6,816 | 6,426 | 4,567 | 20,795 | 11,901 | |||||||||||||||||||||||||||
Provision for income tax on net income as adjusted (5) | 1,819 | 1,720 | 1,219 | 5,511 | 3,166 | |||||||||||||||||||||||||||
Net income as adjusted (non-GAAP) (4) | $ | 4,997 | $ | 4,706 | $ | 3,348 | $ | 15,284 | $ | 8,735 | ||||||||||||||||||||||
GAAP diluted earnings per share, net of tax | $ | 0.47 | $ | 0.44 | $ | 0.31 | $ | 1.41 | $ | 0.82 | ||||||||||||||||||||||
Net gain on sale of acquired business lines | — | — | (0.01) | — | (0.03) | |||||||||||||||||||||||||||
Settlement proceeds | — | — | — | — | (0.01) | |||||||||||||||||||||||||||
FHLB borrowings prepayment fee | $ | — | $ | — | — | $ | 0.01 | — | ||||||||||||||||||||||||
Diluted earnings per share, as adjusted, net of tax (non-GAAP) | $ | 0.47 | $ | 0.44 | $ | 0.30 | $ | 1.42 | $ | 0.78 | ||||||||||||||||||||||
Average diluted shares outstanding | 10,622,595 | 10,789,843 | 11,155,337 | 10,797,502 | 11,172,641 |
Loan Composition (in thousands) | September 30, 2021 | June 30, 2021 | December 31, 2020 | September 30, 2020 | ||||||||||||||||||||||
Originated Loans: | ||||||||||||||||||||||||||
Commercial/Agricultural real estate: | ||||||||||||||||||||||||||
Commercial real estate | $ | 508,540 | $ | 420,565 | $ | 351,113 | $ | 322,028 | ||||||||||||||||||
Agricultural real estate | 49,082 | 42,925 | 31,741 | 32,530 | ||||||||||||||||||||||
Multi-family real estate | 150,094 | 113,790 | 112,731 | 100,148 | ||||||||||||||||||||||
Construction and land development | 84,399 | 89,586 | 91,241 | 80,992 | ||||||||||||||||||||||
C&I/Agricultural operating: | ||||||||||||||||||||||||||
Commercial and industrial | 90,581 | 80,783 | 95,290 | 79,959 | ||||||||||||||||||||||
Agricultural operating | 25,390 | 23,014 | 24,457 | 24,324 | ||||||||||||||||||||||
Residential mortgage: | ||||||||||||||||||||||||||
Residential mortgage | 68,986 | 72,965 | 86,283 | 90,100 | ||||||||||||||||||||||
Purchased HELOC loans | 3,921 | 4,949 | 6,260 | 6,547 | ||||||||||||||||||||||
Consumer installment: | ||||||||||||||||||||||||||
Originated indirect paper | 17,689 | 20,377 | 25,851 | 28,535 | ||||||||||||||||||||||
Other consumer | 9,414 | 10,296 | 12,056 | 13,221 | ||||||||||||||||||||||
Originated loans before SBA PPP loans | 1,008,096 | 879,250 | 837,023 | 778,384 | ||||||||||||||||||||||
SBA PPP loans | 31,301 | 74,925 | 123,702 | 139,166 | ||||||||||||||||||||||
Total originated loans | $ | 1,039,397 | $ | 954,175 | $ | 960,725 | $ | 917,550 | ||||||||||||||||||
Acquired Loans: | ||||||||||||||||||||||||||
Commercial/Agricultural real estate: | ||||||||||||||||||||||||||
Commercial real estate | $ | 129,784 | $ | 139,497 | $ | 156,562 | $ | 178,645 | ||||||||||||||||||
Agricultural real estate | 27,552 | 29,740 | 37,054 | 40,613 | ||||||||||||||||||||||
Multi-family real estate | 5,928 | 7,401 | 9,421 | 9,520 | ||||||||||||||||||||||
Construction and land development | 1,139 | 1,202 | 7,276 | 8,346 | ||||||||||||||||||||||
C&I/Agricultural operating: | ||||||||||||||||||||||||||
Commercial and industrial | 16,554 | 19,701 | 21,263 | 24,413 | ||||||||||||||||||||||
Agricultural operating | 4,541 | 4,893 | 8,328 | 9,634 | ||||||||||||||||||||||
Residential mortgage: | ||||||||||||||||||||||||||
Residential mortgage | 30,795 | 33,781 | 45,103 | 51,754 | ||||||||||||||||||||||
Consumer installment: | ||||||||||||||||||||||||||
Other consumer | 516 | 648 | 1,157 | 1,409 | ||||||||||||||||||||||
Total acquired loans | $ | 216,809 | $ | 236,863 | $ | 286,164 | $ | 324,334 | ||||||||||||||||||
Total Loans: | ||||||||||||||||||||||||||
Commercial/Agricultural real estate: | ||||||||||||||||||||||||||
Commercial real estate | $ | 638,324 | $ | 560,062 | $ | 507,675 | $ | 500,673 | ||||||||||||||||||
Agricultural real estate | 76,634 | 72,665 | 68,795 | 73,143 | ||||||||||||||||||||||
Multi-family real estate | 156,022 | 121,191 | 122,152 | 109,668 | ||||||||||||||||||||||
Construction and land development | 85,538 | 90,788 | 98,517 | 89,338 | ||||||||||||||||||||||
C&I/Agricultural operating: | ||||||||||||||||||||||||||
Commercial and industrial | 107,135 | 100,484 | 116,553 | 104,372 | ||||||||||||||||||||||
Agricultural operating | 29,931 | 27,907 | 32,785 | 33,958 | ||||||||||||||||||||||
Residential mortgage: | ||||||||||||||||||||||||||
Residential mortgage | 99,781 | 106,746 | 131,386 | 141,854 | ||||||||||||||||||||||
Purchased HELOC loans | 3,921 | 4,949 | 6,260 | 6,547 | ||||||||||||||||||||||
Consumer installment: | ||||||||||||||||||||||||||
Originated indirect paper | 17,689 | 20,377 | 25,851 | 28,535 | ||||||||||||||||||||||
Other consumer | 9,930 | 10,944 | 13,213 | 14,630 | ||||||||||||||||||||||
Gross loans before SBA PPP loans | 1,224,905 | 1,116,113 | 1,123,187 | 1,102,718 | ||||||||||||||||||||||
SBA PPP loans | 31,301 | 74,925 | 123,702 | 139,166 | ||||||||||||||||||||||
Gross loans | $ | 1,256,206 | $ | 1,191,038 | $ | 1,246,889 | $ | 1,241,884 | ||||||||||||||||||
Unearned net deferred fees and costs and loans in process | (3,486) | (5,133) | (4,245) | (5,033) | ||||||||||||||||||||||
Unamortized discount on acquired loans | (4,066) | (4,347) | (5,063) | (6,712) | ||||||||||||||||||||||
Total loans receivable | $ | 1,248,654 | $ | 1,181,558 | $ | 1,237,581 | $ | 1,230,139 |
September 30, 2021 and Three Months Ended | June 30, 2021 and Three Months Ended | December 31, 2020 and Three Months Ended | September 30, 2020 and Three Months Ended | |||||||||||||||||||||||
Nonperforming assets: | ||||||||||||||||||||||||||
Originated nonperforming assets: | ||||||||||||||||||||||||||
Nonaccrual loans | $ | 6,408 | $ | 2,420 | $ | 3,649 | $ | 3,255 | ||||||||||||||||||
Accruing loans past due 90 days or more | 295 | 88 | 415 | 698 | ||||||||||||||||||||||
Total originated nonperforming loans (“NPL”) | 6,703 | 2,508 | 4,064 | 3,953 | ||||||||||||||||||||||
Other real estate owned (“OREO”) | — | — | 63 | 352 | ||||||||||||||||||||||
Other collateral owned | 2 | 16 | 41 | 56 | ||||||||||||||||||||||
Total originated nonperforming assets (“NPAs”) | $ | 6,705 | $ | 2,524 | $ | 4,168 | $ | 4,361 | ||||||||||||||||||
Acquired nonperforming assets: | ||||||||||||||||||||||||||
Nonaccrual loans | $ | 5,298 | $ | 5,655 | $ | 7,098 | $ | 9,899 | ||||||||||||||||||
Accruing loans past due 90 days or more | 130 | 454 | 171 | 252 | ||||||||||||||||||||||
Total acquired nonperforming loans (“NPL”) | 5,428 | 6,109 | 7,269 | 10,151 | ||||||||||||||||||||||
Other real estate owned (“OREO”) | 2 | 129 | 93 | 404 | ||||||||||||||||||||||
Other collateral owned | — | — | — | — | ||||||||||||||||||||||
Total acquired nonperforming assets (“NPAs”) | $ | 5,430 | $ | 6,238 | $ | 7,362 | $ | 10,555 | ||||||||||||||||||
Total nonperforming assets (“NPAs”) | $ | 12,135 | $ | 8,762 | $ | 11,530 | $ | 14,916 | ||||||||||||||||||
Loans, end of period | $ | 1,248,654 | $ | 1,181,558 | $ | 1,237,581 | $ | 1,230,139 | ||||||||||||||||||
Total assets, end of period | $ | 1,753,477 | $ | 1,714,472 | $ | 1,649,095 | $ | 1,622,593 | ||||||||||||||||||
Ratios: | ||||||||||||||||||||||||||
Originated NPLs to total loans | 0.54 | % | 0.21 | % | 0.33 | % | 0.32 | % | ||||||||||||||||||
Acquired NPLs to total loans | 0.43 | % | 0.52 | % | 0.59 | % | 0.83 | % | ||||||||||||||||||
Originated NPAs to total assets | 0.38 | % | 0.15 | % | 0.25 | % | 0.27 | % | ||||||||||||||||||
Acquired NPAs to total assets | 0.31 | % | 0.36 | % | 0.45 | % | 0.65 | % |
September 30, 2021 and Three Months Ended | June 30, 2021 and Three Months Ended | December 31, 2020 and Three Months Ended | September 30, 2020 and Three Months Ended | |||||||||||||||||||||||
Nonperforming assets: | ||||||||||||||||||||||||||
Nonaccrual loans | ||||||||||||||||||||||||||
Commercial real estate | $ | 5,427 | $ | 1,027 | $ | 827 | $ | 2,762 | ||||||||||||||||||
Agricultural real estate | 3,567 | 3,716 | 5,084 | 5,252 | ||||||||||||||||||||||
Commercial and industrial (“C&I”) | 311 | 313 | 357 | 853 | ||||||||||||||||||||||
Agricultural operating | 1,063 | 1,163 | 1,872 | 1,651 | ||||||||||||||||||||||
Residential mortgage | 1,263 | 1,768 | 2,451 | 2,536 | ||||||||||||||||||||||
Consumer installment | 75 | 88 | 156 | 100 | ||||||||||||||||||||||
Total nonaccrual loans | $ | 11,706 | $ | 8,075 | $ | 10,747 | $ | 13,154 | ||||||||||||||||||
Accruing loans past due 90 days or more | 425 | 542 | 586 | 950 | ||||||||||||||||||||||
Total nonperforming loans (“NPLs”) | 12,131 | 8,617 | 11,333 | 14,104 | ||||||||||||||||||||||
Foreclosed and repossessed assets, net | 4 | 145 | 197 | 812 | ||||||||||||||||||||||
Total nonperforming assets (“NPAs”) | $ | 12,135 | $ | 8,762 | $ | 11,530 | $ | 14,916 | ||||||||||||||||||
Troubled Debt Restructurings (“TDRs”) | $ | 15,689 | $ | 16,597 | $ | 18,477 | $ | 19,778 | ||||||||||||||||||
Nonaccrual TDRs | $ | 4,324 | $ | 4,861 | $ | 6,735 | $ | 7,199 | ||||||||||||||||||
Loans, end of period | $ | 1,248,654 | $ | 1,181,558 | $ | 1,237,581 | $ | 1,230,139 | ||||||||||||||||||
Total assets, end of period | $ | 1,753,477 | $ | 1,714,472 | $ | 1,649,095 | $ | 1,622,593 | ||||||||||||||||||
Ratios: | ||||||||||||||||||||||||||
NPLs to total loans | 0.97 | % | 0.73 | % | 0.92 | % | 1.15 | % | ||||||||||||||||||
NPAs to total assets | 0.69 | % | 0.51 | % | 0.70 | % | 0.92 | % |
September 30, 2021 | June 30, 2021 | December 31, 2020 | September 30, 2020 | |||||||||||||||||||||||
Non-interest bearing demand deposits | $ | 280,611 | $ | 253,097 | $ | 238,348 | $ | 229,217 | ||||||||||||||||||
Interest bearing demand deposits | 381,315 | 375,005 | 301,764 | 279,648 | ||||||||||||||||||||||
Savings accounts | 229,623 | 220,698 | 196,348 | 191,511 | ||||||||||||||||||||||
Money market accounts | 291,242 | 263,390 | 245,549 | 246,651 | ||||||||||||||||||||||
Certificate accounts | 225,524 | 259,036 | 313,247 | 323,751 | ||||||||||||||||||||||
Total deposits | $ | 1,408,315 | $ | 1,371,226 | $ | 1,295,256 | $ | 1,270,778 |
Three months ended September 30, 2021 | Three months ended June 30, 2021 | Three months ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Balance | Interest Income/ Expense | Average Yield/ Rate (1) | Average Balance | Interest Income/ Expense | Average Yield/ Rate (1) | Average Balance | Interest Income/ Expense | Average Yield/ Rate (1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Average interest earning assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 111,192 | $ | 50 | 0.18 | % | $ | 113,561 | $ | 28 | 0.10 | % | $ | 77,774 | $ | 18 | 0.09 | % | ||||||||||||||||||||||||||||||||||||||
Loans receivable | 1,192,636 | 14,537 | 4.84 | % | 1,186,439 | 13,960 | 4.72 | % | 1,258,224 | 14,154 | 4.48 | % | ||||||||||||||||||||||||||||||||||||||||||||
Interest bearing deposits | 1,512 | 8 | 2.10 | % | 1,754 | 9 | 2.06 | % | 3,752 | 23 | 2.44 | % | ||||||||||||||||||||||||||||||||||||||||||||
Investment securities (1) | 303,325 | 1,412 | 1.85 | % | 283,557 | 1,308 | 1.85 | % | 166,622 | 846 | 2.02 | % | ||||||||||||||||||||||||||||||||||||||||||||
Other investments | 14,961 | 168 | 4.46 | % | 15,020 | 173 | 4.62 | % | 15,145 | 177 | 4.65 | % | ||||||||||||||||||||||||||||||||||||||||||||
Total interest earning assets (1) | $ | 1,623,626 | $ | 16,175 | 3.95 | % | $ | 1,600,331 | $ | 15,478 | 3.88 | % | $ | 1,521,517 | $ | 15,218 | 3.98 | % | ||||||||||||||||||||||||||||||||||||||
Average interest bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Savings accounts | $ | 216,304 | $ | 95 | 0.17 | % | $ | 219,804 | $ | 99 | 0.18 | % | $ | 183,381 | $ | 98 | 0.21 | % | ||||||||||||||||||||||||||||||||||||||
Demand deposits | 392,080 | 280 | 0.28 | % | 360,314 | 257 | 0.29 | % | 285,993 | 231 | 0.32 | % | ||||||||||||||||||||||||||||||||||||||||||||
Money market accounts | 276,582 | 193 | 0.28 | % | 258,638 | 182 | 0.28 | % | 255,160 | 280 | 0.44 | % | ||||||||||||||||||||||||||||||||||||||||||||
CD’s | 207,494 | 682 | 1.30 | % | 240,224 | 868 | 1.45 | % | 297,691 | 1,469 | 1.96 | % | ||||||||||||||||||||||||||||||||||||||||||||
IRA’s | 39,525 | 104 | 1.04 | % | 39,970 | 115 | 1.15 | % | 41,852 | 177 | 1.68 | % | ||||||||||||||||||||||||||||||||||||||||||||
Total deposits | $ | 1,131,985 | $ | 1,354 | 0.47 | % | $ | 1,118,950 | $ | 1,521 | 0.55 | % | $ | 1,064,077 | $ | 2,255 | 0.84 | % | ||||||||||||||||||||||||||||||||||||||
FHLB advances and other borrowings | 169,891 | 1,133 | 2.65 | % | 171,261 | 1,126 | 2.64 | % | 173,758 | 1,054 | 2.41 | % | ||||||||||||||||||||||||||||||||||||||||||||
Total interest bearing liabilities | $ | 1,301,876 | $ | 2,487 | 0.76 | % | $ | 1,290,211 | $ | 2,647 | 0.82 | % | $ | 1,237,835 | $ | 3,309 | 1.06 | % | ||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 13,688 | $ | 12,831 | $ | 11,909 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate spread | 3.19 | % | 3.06 | % | 2.92 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin (1) | 3.34 | % | 3.22 | % | 3.11 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Average interest earning assets to average interest bearing liabilities | 1.25 | 1.24 | 1.23 |
Nine months ended September 30, 2021 | Nine months ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||
Average Balance | Interest Income/ Expense | Average Yield/ Rate (1) | Average Balance | Interest Income/ Expense | Average Yield/ Rate (1) | |||||||||||||||||||||||||||||||||
Average interest earning assets: | ||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 118,064 | $ | 107 | 0.12 | % | $ | 42,946 | $ | 141 | 0.44 | % | ||||||||||||||||||||||||||
Loans receivable | 1,197,469 | 43,014 | 4.80 | % | 1,232,678 | 44,300 | 4.80 | % | ||||||||||||||||||||||||||||||
Interest bearing deposits | 2,227 | 37 | 2.22 | % | 3,967 | 73 | 2.46 | % | ||||||||||||||||||||||||||||||
Investment securities (1) | 263,655 | 3,606 | 1.83 | % | 173,595 | 2,965 | 2.28 | % | ||||||||||||||||||||||||||||||
Other investments | 15,006 | 510 | 4.54 | % | 15,104 | 533 | 4.71 | % | ||||||||||||||||||||||||||||||
Total interest earning assets (1) | $ | 1,596,421 | $ | 47,274 | 3.96 | % | $ | 1,468,290 | $ | 48,012 | 4.37 | % | ||||||||||||||||||||||||||
Average interest bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
Savings accounts | $ | 211,320 | $ | 277 | 0.18 | % | $ | 169,754 | $ | 348 | 0.27 | % | ||||||||||||||||||||||||||
Demand deposits | 361,248 | 788 | 0.29 | % | 262,748 | 865 | 0.44 | % | ||||||||||||||||||||||||||||||
Money market accounts | 263,195 | 577 | 0.29 | % | 244,965 | 1,240 | 0.68 | % | ||||||||||||||||||||||||||||||
CD’s | 237,706 | 2,592 | 1.46 | % | 326,776 | 5,021 | 2.05 | % | ||||||||||||||||||||||||||||||
IRA’s | 40,119 | 355 | 1.18 | % | 42,221 | 568 | 1.80 | % | ||||||||||||||||||||||||||||||
Total deposits | $ | 1,113,588 | $ | 4,589 | 0.55 | % | $ | 1,046,464 | $ | 8,042 | 1.03 | % | ||||||||||||||||||||||||||
FHLB advances and other borrowings | 173,889 | 3,400 | 2.61 | % | 185,256 | 3,087 | 2.23 | % | ||||||||||||||||||||||||||||||
Total interest bearing liabilities | $ | 1,287,477 | $ | 7,989 | 0.83 | % | $ | 1,231,720 | $ | 11,129 | 1.21 | % | ||||||||||||||||||||||||||
Net interest income | $ | 39,285 | $ | 36,883 | ||||||||||||||||||||||||||||||||||
Interest rate spread | 3.13 | % | 3.16 | % | ||||||||||||||||||||||||||||||||||
Net interest margin (1) | 3.29 | % | 3.36 | % | ||||||||||||||||||||||||||||||||||
Average interest earning assets to average interest bearing liabilities | 1.24 | 1.19 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
September 30, 2021 | June 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | |||||||||||||||||||||||||||||||
Ratios based on net income: | |||||||||||||||||||||||||||||||||||
Return on average assets (annualized) | 1.13 | % | 1.10 | % | 0.85 | % | 1.19 | % | 0.77 | % | |||||||||||||||||||||||||
Return on average equity (annualized) | 12.00 | % | 11.63 | % | 8.93 | % | 12.51 | % | 8.06 | % | |||||||||||||||||||||||||
Return on average tangible common equity5 (annualized) | 15.34 | % | 14.98 | % | 11.79 | % | 16.12 | % | 10.78 | % | |||||||||||||||||||||||||
Efficiency ratio | 60 | % | 61 | % | 63 | % | 59 | % | 65 | % | |||||||||||||||||||||||||
Net interest margin with loan purchase accretion | 3.34 | % | 3.22 | % | 3.11 | % | 3.29 | % | 3.36 | % | |||||||||||||||||||||||||
Net interest margin without loan purchase accretion | 3.28 | % | 3.14 | % | 3.01 | % | 3.21 | % | 3.15 | % | |||||||||||||||||||||||||
Ratios based on net income as adjusted (non-GAAP): | |||||||||||||||||||||||||||||||||||
Return on average assets as adjusted2 (annualized) | 1.13 | % | 1.10 | % | 0.82 | % | 1.19 | % | 0.74 | % | |||||||||||||||||||||||||
Return on average equity as adjusted3 (annualized) | 12.00 | % | 11.63 | % | 8.59 | % | 12.57 | % | 7.69 | % | |||||||||||||||||||||||||
Return on average tangible common equity as adjusted5 (annualized) | 15.34 | % | 14.98 | % | 11.34 | % | 16.20 | % | 10.29 | % | |||||||||||||||||||||||||
Efficiency ratio4 as adjusted (non-GAAP) | 60 | % | 61 | % | 64 | % | 59 | % | 66 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, 2021 | June 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||||||||||||||
GAAP earnings after income taxes | $ | 4,997 | $ | 4,706 | $ | 3,480 | $ | 15,209 | $ | 9,155 | ||||||||||||||||||||||
Net income as adjusted after income taxes (non-GAAP) (1) | $ | 4,997 | $ | 4,706 | $ | 3,348 | $ | 15,284 | $ | 8,735 | ||||||||||||||||||||||
Average assets | $ | 1,748,065 | $ | 1,716,394 | $ | 1,627,497 | $ | 1,713,932 | $ | 1,580,733 | ||||||||||||||||||||||
Return on average assets (annualized) | 1.13 | % | 1.10 | % | 0.85 | % | 1.19 | % | 0.77 | % | ||||||||||||||||||||||
Return on average assets as adjusted (non-GAAP) (annualized) | 1.13 | % | 1.10 | % | 0.82 | % | 1.19 | % | 0.74 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, 2021 | June 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||||||||||||||
GAAP earnings after income taxes | $ | 4,997 | $ | 4,706 | $ | 3,480 | $ | 15,209 | $ | 9,155 | ||||||||||||||||||||||
Net income as adjusted after income taxes (non-GAAP) (1) | $ | 4,997 | $ | 4,706 | $ | 3,348 | $ | 15,284 | $ | 8,735 | ||||||||||||||||||||||
Average equity | $ | 165,203 | $ | 162,361 | $ | 154,996 | $ | 162,510 | $ | 151,691 | ||||||||||||||||||||||
Return on average equity (annualized) | 12.00 | % | 11.63 | % | 8.93 | % | 12.51 | % | 8.06 | % | ||||||||||||||||||||||
Return on average equity as adjusted (non-GAAP) (annualized) | 12.00 | % | 11.63 | % | 8.59 | % | 12.57 | % | 7.69 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, 2021 | June 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||||||||||||||
Total stockholders’ equity | $ | 165,926 | $ | 164,016 | $ | 157,323 | $ | 165,926 | $ | 157,323 | ||||||||||||||||||||||
Less: Goodwill | (31,498) | (31,498) | (31,498) | (31,498) | (31,498) | |||||||||||||||||||||||||||
Less: Intangible assets | (4,297) | (4,696) | (5,893) | (4,297) | (5,893) | |||||||||||||||||||||||||||
Tangible common equity (non-GAAP) | $ | 130,131 | $ | 127,822 | $ | 119,932 | $ | 130,131 | $ | 119,932 | ||||||||||||||||||||||
Average tangible common equity (non-GAAP) | $ | 129,208 | $ | 125,967 | $ | 117,466 | $ | 126,116 | $ | 113,411 | ||||||||||||||||||||||
GAAP earnings after income taxes | $ | 4,997 | $ | 4,706 | $ | 3,480 | $ | 15,209 | $ | 9,155 | ||||||||||||||||||||||
Net income as adjusted after income taxes (non-GAAP) (1) | $ | 4,997 | $ | 4,706 | $ | 3,348 | $ | 15,284 | $ | 8,735 | ||||||||||||||||||||||
Return on average tangible common equity (annualized) | 15.34 | % | 14.98 | % | 11.79 | % | 16.12 | % | 10.78 | % | ||||||||||||||||||||||
Return on average tangible common equity as adjusted (non-GAAP) (annualized) | 15.34 | % | 14.98 | % | 11.34 | % | 16.20 | % | 10.29 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
September 30, 2021 | June 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | |||||||||||||||||||||||||
Non-interest expense (GAAP) | $ | 10,320 | $ | 10,198 | $ | 10,724 | $ | 30,007 | $ | 32,847 | |||||||||||||||||||
FHLB borrowings prepayment fee (1) | — | — | — | (102) | — | ||||||||||||||||||||||||
Non-interest expense as adjusted (non-GAAP) | 10,320 | 10,198 | 10,724 | 29,905 | 32,847 | ||||||||||||||||||||||||
Non-interest income | 3,448 | 3,793 | 5,062 | 11,415 | 13,678 | ||||||||||||||||||||||||
Net interest margin | 13,688 | 12,831 | 11,909 | 39,285 | 36,883 | ||||||||||||||||||||||||
Efficiency ratio denominator (GAAP) | $ | 17,136 | $ | 16,624 | $ | 16,971 | $ | 50,700 | $ | 50,561 | |||||||||||||||||||
Net gain on acquired business lines (1) | — | — | (180) | — | (432) | ||||||||||||||||||||||||
Settlement proceeds (1) | — | — | — | — | (131) | ||||||||||||||||||||||||
Efficiency ratio denominator (non-GAAP) | $ | 17,136 | $ | 16,624 | $ | 16,791 | $ | 50,700 | $ | 49,998 | |||||||||||||||||||
Efficiency ratio (GAAP) | 60 | % | 61 | % | 63 | % | 59 | % | 65 | % | |||||||||||||||||||
Efficiency ratio as adjusted (non-GAAP) | 60 | % | 61 | % | 64 | % | 59 | % | 66 | % |
Tangible book value per share at end of period | September 30, 2021 | June 30, 2021 | September 30, 2020 | |||||||||||||||||
Total stockholders’ equity | $ | 165,926 | $ | 164,016 | $ | 157,323 | ||||||||||||||
Less: Goodwill | (31,498) | (31,498) | (31,498) | |||||||||||||||||
Less: Intangible assets | (4,297) | (4,696) | (5,893) | |||||||||||||||||
Tangible common equity (non-GAAP) | $ | 130,131 | $ | 127,822 | $ | 119,932 | ||||||||||||||
Ending common shares outstanding | 10,518,885 | 10,696,075 | 11,154,645 | |||||||||||||||||
Book value per share | $ | 15.77 | $ | 15.33 | $ | 14.10 | ||||||||||||||
Tangible book value per share (non-GAAP) | $ | 12.37 | $ | 11.95 | $ | 10.75 |
Tangible common equity as a percent of tangible assets at end of period | September 30, 2021 | June 30, 2021 | September 30, 2020 | |||||||||||||||||
Total stockholders’ equity | $ | 165,926 | $ | 164,016 | $ | 157,323 | ||||||||||||||
Less: Goodwill | (31,498) | (31,498) | (31,498) | |||||||||||||||||
Less: Intangible assets | (4,297) | (4,696) | (5,893) | |||||||||||||||||
Tangible common equity (non-GAAP) | $ | 130,131 | $ | 127,822 | $ | 119,932 | ||||||||||||||
Total Assets | $ | 1,753,477 | $ | 1,714,472 | $ | 1,622,593 | ||||||||||||||
Less: Goodwill | (31,498) | (31,498) | (31,498) | |||||||||||||||||
Less: Intangible assets | (4,297) | (4,696) | (5,893) | |||||||||||||||||
Tangible Assets (non-GAAP) | $ | 1,717,682 | $ | 1,678,278 | $ | 1,585,202 | ||||||||||||||
Total stockholders’ equity to total assets ratio | 9.46 | % | 9.57 | % | 9.70 | % | ||||||||||||||
Tangible common equity as a percent of tangible assets (non-GAAP) | 7.58 | % | 7.62 | % | 7.57 | % | ||||||||||||||
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