UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________
Form 8-K
______________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event Reported): October 28, 2019
CB FINANCIAL SERVICES, INC.
(Exact Name of Registrant as Specified in Charter)
Pennsylvania | 001-36706 | 51-0534721 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
100 North Market Street, Carmichaels, Pennsylvania | 15320 |
(Address of Principal Executive Offices) | (Zip Code) |
(724) 966-5041
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | ||
[ ] | 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)) |
Securities registered pursuant to Section 12(b) of the Act:
Common stock, par value $0.4167 per share | CBFV | The Nasdaq Stock Market, LLC |
(Title of each class) | (Trading symbol) | (Name of each exchange on which registered) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). [ X ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standard provided pursuant to Section 13(a) of the Exchange Act. [ X ]
Item 2.02. Results of Operations and Financial Condition.
On October 28, 2019, the Registrant issued a press release announcing its financial results for the quarter ended September 30, 2019, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CB FINANCIAL SERVICES, INC. | ||
Date: October 28, 2019 | By: | /s/ Jamie L. Prah |
Jamie L. Prah | ||
Executive Vice President and Chief Financial Officer | ||
EXHIBIT 99.1
CB Financial Services, Inc. Announces Third Quarter and Year-to-Date 2019 Financial Results
WASHINGTON, Pa., Oct. 28, 2019 (GLOBE NEWSWIRE) -- CB Financial Services, Inc. (“CB” or the “Company”) (NASDAQGM: CBFV), the holding company of Community Bank (the “Bank”) and Exchange Underwriters, Inc., a wholly-owned insurance subsidiary of the Bank, today announced its third quarter and year-to-date 2019 financial results.
Third Quarter 2019 Highlights
FWVB Merger
The year-to-date results were largely impacted by the First West Virginia Bancorp and Progressive Bank, National Association merger (“FWVB merger”) on April 30, 2018. The merger brought approximately $281.6 million in low-cost deposits, $95.5 million in loans and eight branch locations in the Upper Ohio Valley and Buckhannon, WV regions. In addition, we have added branch and back office personnel to accommodate the increased customer traffic and transaction volumes due to the FWVB merger.
Net income for the nine months ended September 30, 2019 was $9.7 million compared to $4.6 million for the nine months ended September 30, 2018, an increase of $5.0 million. Diluted earnings per share (“EPS”) for the nine months ended September 30, 2019 was $1.77 compared to $0.95 for the nine months ended September 30, 2018.
Prior quarter and year-to-date financial results were impacted by pre-tax merger-related expenses of $61,000 and $854,000, respectively, and by pre-tax lease termination costs of $294,000 related to the former FWVB corporate headquarters and former Washington Business Center. The Bank moved into the Barron P. “Pat” McCune Jr. Corporate Center (“BPMCC”) in the third quarter of 2018. In addition, prior year-to-date results were impacted by proceeds of $421,000 from a bank-owned life insurance policy. Net income excluding merger-related expenses and these one-time items would have been approximately $2.6 million and $5.1 million for the three and nine months ended September 30, 2018. The diluted earnings per share impact of the removal of these items would have been $0.47 and $1.04 per share for the three and nine months ended September 30, 2018, which would have been increases of $0.05 and $0.09 per share, for the aforementioned time periods, respectively.
“The third quarter financial performance was one of our best quarters in history, which contributed to our strong year-to-date results,” said Patrick G. O’Brien, President and Chief Executive Officer. “The third quarter was our first complete quarter to quarter comparison since the FWVB merger and we are seeing the impact from the synergies we anticipated. Although we recognize the challenges we face in a competitive economic environment, we are continuing to build our brand and will expand our presence through our product offerings in the markets we serve. I always need to recognize that our success to date and promise for the future are made possible through our hard working, dedicated and talented staff.”
STATEMENT OF INCOME REVIEW
Third Quarter Results
Overview. Net income increased $1.5 million to $3.7 million for the three months ended September 30, 2019, compared to $2.3 million for the three months ended September 30, 2018. The quarterly results were mainly impacted by average period over period loan growth, which produced increased net interest income, and decreases in various noninterest expenses.
Net Interest Income. Net interest income increased $926,000, or 9.1%, to $11.1 million for the three months ended September 30, 2019, compared to $10.2 million for the three months ended September 30, 2018.
Interest and dividend income increased $1.3 million, or 11.3%, to $13.1 million for the three months ended September 30, 2019 compared to $11.8 million for the three months ended September 30, 2018.
Interest expense increased $408,000, or 25.6%, to $2.0 million for the three months ended September 30, 2019, compared to $1.6 million for the three months ended September 30, 2018.
Provision for Loan Losses. The provision for loan losses was $175,000 for the three months ended September 30, 2019, compared to $25,000, for the three months ended September 30, 2018. Net charge-offs for the three months ended September 30, 2019 were $116,000, which included net-charge-offs of $113,000 on automobile loans, compared to $111,000 of net charge-offs for the three months ended September 30, 2018, which included $63,000 of net charge-offs on automobile loans. Management analyzes the loan portfolio on a quarterly basis to determine the adequacy of the allowance for loan losses and the need for additional provisions for loan losses. While several unexpected commercial loan payoffs offset loan production in the current quarterly period and net charge-offs were comparable to the prior period, declining economic indicators triggered an adjustment to the qualitative factors, which was the primary driver of the current period provision. In addition, updated impairment analyses on two commercial real estate loans indicated improved market value of collateral and financial information resulting in a decrease in specific reserves. The minimal quarterly provision in the prior period was primarily due to loan payoffs mainly offsetting loan growth.
Noninterest Income. Noninterest income increased $111,000, or 5.3%, to $2.2 million for the three months ended September 30, 2019, compared to $2.1 million for the three months ended September 30, 2018.
Noninterest Expense. Noninterest expense decreased $875,000, or 9.3%, to $8.5 million for the three months ended September 30, 2019, compared to $9.4 million for the three months ended September 30, 2018.
Income Tax Expense. Income taxes increased $308,000 to $884,000 for the three months ended September 30, 2019, compared to $576,000, for the three months ended September 30, 2018. The effective tax rate for the three months ended September 30, 2019 was 19.1%, compared to 20.1%, for the three months ended September 30, 2018. The increase in income taxes was due to an increase of $1.8 million in pre-tax income.
Year-to-Date Results
Overview. Net income increased $5.0 million, to $9.7 million for the nine months ended September 30, 2019 compared to $4.6 million for the nine months ended September 30, 2018. Results for the nine months ended September 30, 2019 were largely impacted by the full period effect of the FWVB merger that was completed on April 30, 2018.
Net Interest Income. Net interest income increased $5.3 million, or 19.6%, to $32.2 million for the nine months ended September 30, 2019, compared to $27.0 million for the nine months ended September 30, 2018.
Interest and dividend income increased $6.9 million, or 22.1%, to $38.1 million for the nine months ended September 30, 2019, compared to $31.2 million for the nine months ended September 30, 2018.
Interest expense increased $1.6 million, or 38.4%, to $5.8 million for the nine months ended September 30, 2019, compared to $4.2 million for the nine months ended September 30, 2018.
Provision for Loan Losses. The provision for loan losses decreased $1.6 million, to $550,000, for the nine months ended September 30, 2019, compared to $2.1 million of provision for loan losses for the nine months ended September 30, 2018. Net charge-offs for the nine months ended September 30, 2019 were $358,000, which included $293,000 of net charge-offs on automobile loans, compared to net charge-offs of $1.6 million for the nine months ended September 30, 2018. The decrease in net charge-offs for the current period was due to charge-offs of $1.2 million for three commercial and industrial relationships in the first quarter of 2018. The provision for loan losses was impacted in the prior period due to the above-mentioned loan charge-offs and to appropriately reflect risk associated within the portfolio as of the nine months ended September 30, 2018. Additionally, updated appraisals on two commercial real estate loans indicated improved market value of collateral and improved borrower’s financial information resulting in a decrease in specific reserves. Management analyzes the loan portfolio on a quarterly basis to determine the adequacy of the allowance for loan losses with the possible need for additional provisions for loan losses.
Noninterest Income. Noninterest income increased $614,000, or 9.7%, to $6.9 million for the nine months ended September 30, 2019 compared to $6.3 million for the nine months ended September 30, 2018.
Noninterest Expense. Noninterest expense increased $1.1 million, or 4.2%, to $26.6 million for the nine months ended September 30, 2019, compared to $25.5 million for the nine months ended September 30, 2018.
Income Tax Expense. Income taxes increased $1.4 million to $2.3 million for the nine months ended September 30, 2019, compared to $977,000 for the nine months ended September 30, 2018. The effective tax rate for the nine months ended September 30, 2019 was 19.6% compared to 17.4% for the nine months ended September 30, 2018. The increase in income taxes was related to an increase of $6.4 million in pre-tax income. The increase in the current period effective tax rate was due to the prior period recognition of the one-time income on a bank-owned life insurance claim of approximately $421,000, which was a discrete tax item for the first quarter of 2018. In addition, there was a decrease in income on securities exempt from federal income tax.
STATEMENT OF FINANCIAL CONDITION REVIEW
Assets. Total assets increased $46.6 million, or 3.6%, to over $1.3 billion at September 30, 2019, from just under $1.3 billion at December 31, 2018.
Liabilities. Total liabilities increased $36.1 million, or 3.2%, to $1.2 billion at September 30, 2019 compared to $1.1 billion at December 31, 2018.
Stockholders’ Equity. Stockholders’ equity increased $10.5 million, or 7.6%, to $148.1 million at September 30, 2019, compared to $137.6 million at December 31, 2018. Net income was $9.7 million for the nine months ended September 30, 2019. Book value per share was $27.26, an increase of $1.93, or 7.1%, at September 30, 2019, compared to $25.33 for December 31, 2018. The Company paid $3.9 million in dividends to stockholders and accumulated other comprehensive income increased $4.5 million primarily due to improved market interest rate conditions in the current period on the Bank’s available-for-sale debt securities.
About CB Financial Services, Inc
CB Financial Services, Inc. is the bank holding company for Community Bank, a Pennsylvania-chartered commercial bank headquartered in Washington, Pennsylvania. Community Bank operates twenty offices in Greene, Allegheny, Washington, Fayette, and Westmoreland Counties in southwestern Pennsylvania, seven offices in Brooke, Marshall, Ohio, Upshur and Wetzel Counties in West Virginia, and one office in Belmont County in Ohio. Community Bank offers a broad array of retail and commercial lending and deposit services and provides commercial and personal insurance brokerage services through Exchange Underwriters, Inc., its wholly owned subsidiary. Consolidated financial highlights of the Company are attached.
For more information about CB and Community Bank, visit our website at www.communitybank.tv.
Statements contained in this press release that are not historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995 and such forward-looking statements are subject to significant risks and uncertainties. The Company intends such forward-looking statements to be covered by the safe harbor provisions contained in the Act. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations and future prospects of the Company and its subsidiaries include, but are not limited to, changes in market interest rates, general economic conditions, changes in federal and state regulation, actions by our competitors, loan delinquency rates, our ability to control costs and expenses, and other factors that may be described in the Company’s periodic reports as filed with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company assumes no obligation to update any forward-looking statements except as may be required by applicable law or regulation.
Contact:
Patrick G. O’Brien
President and Chief Executive Officer
Phone: (724) 225-2400
Fax: (724) 225-4903
SELECTED CONSOLIDATED FINANCIAL INFORMATION | ||||||||||
(Unaudited) | ||||||||||
(Dollars in thousands, except share and per share data) | September 30, | December 31, | ||||||||
Selected Financial Condition Data: | 2019 | 2018 | ||||||||
Total Assets | $ 1,327,856 | $ 1,281,301 | ||||||||
Cash and Cash Equivalents | 88,413 | 53,353 | ||||||||
Securities Available-for-Sale | 217,545 | 225,409 | ||||||||
Loans | ||||||||||
Real Estate: | ||||||||||
Residential | 339,122 | 326,769 | ||||||||
Commercial | 314,177 | 307,064 | ||||||||
Construction | 58,324 | 48,824 | ||||||||
Commercial and Industrial | 92,134 | 91,463 | ||||||||
Consumer | 112,188 | 122,241 | ||||||||
Other | 16,253 | 16,511 | ||||||||
Total Loans | 932,198 | 912,872 | ||||||||
Allowance for Loan Losses | 9,750 | 9,558 | ||||||||
Loans, Net | 922,448 | 903,314 | ||||||||
Premises and Equipment, Net | 22,566 | 23,448 | ||||||||
Goodwill and Core Deposit Intangible | 37,905 | 39,359 | ||||||||
Deposits | 1,125,908 | 1,086,658 | ||||||||
Borrowings | 46,118 | 50,979 | ||||||||
Stockholders' Equity | 148,098 | 137,625 | ||||||||
(Unaudited) | (Unaudited) | |||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
Selected Operations Data: | 2019 | 2018 | 2019 | 2018 | ||||||
Interest and Dividend Income | $ 13,098 | $ 11,764 | $ 38,063 | $ 31,161 | ||||||
Interest Expense | 2,002 | 1,594 | 5,828 | 4,210 | ||||||
Net Interest Income | 11,096 | 10,170 | 32,235 | 26,951 | ||||||
Provision for Loan Losses | 175 | 25 | 550 | 2,125 | ||||||
Net Interest Income After Provision for Loan Losses | 10,921 | 10,145 | 31,685 | 24,826 | ||||||
Noninterest Income: | ||||||||||
Service Fees on Deposit Accounts | 811 | 866 | 2,362 | 2,176 | ||||||
Insurance Commissions | 985 | 920 | 3,219 | 2,731 | ||||||
Other Commissions | 159 | 127 | 448 | 823 | ||||||
Net Gain on Sales of Loans | 48 | 52 | 190 | 106 | ||||||
Net (Loss) Gain on Sales of Investments | 3 | - | (50) | - | ||||||
Fair Value of Marketable Equity Securities | (25) | 35 | 104 | 54 | ||||||
Net Gain on Purchased Tax Credits | 9 | 11 | 27 | 33 | ||||||
Net (Loss) Gain on Disposal of Fixed Assets | - | (74) | 2 | (74) | ||||||
Income from Bank-Owned Life Insurance | 142 | 135 | 408 | 370 | ||||||
Other | 67 | 16 | 203 | 80 | ||||||
Total noninterest income | 2,199 | 2,088 | 6,913 | 6,299 | ||||||
Noninterest Expense: | ||||||||||
Salaries and Employee Benefits | 4,628 | 4,708 | 14,271 | 13,268 | ||||||
Occupancy | 597 | 855 | 2,019 | 2,213 | ||||||
Equipment | 636 | 786 | 2,005 | 1,916 | ||||||
FDIC Assessment | 5 | 67 | 368 | 361 | ||||||
PA Shares Tax | 226 | 197 | 743 | 593 | ||||||
Contracted Services | 312 | 273 | 945 | 583 | ||||||
Legal and Professional Fees | 117 | 171 | 458 | 456 | ||||||
Advertising | 244 | 245 | 651 | 587 | ||||||
Bankcard Processing Expense | 225 | 180 | 652 | 448 | ||||||
Other Real Estate Owned (Income) | 13 | 49 | (81) | 37 | ||||||
Amortization of Core Deposit Intangible | 484 | 452 | 1,454 | 986 | ||||||
Merger-Related | - | 61 | - | 854 | ||||||
Other | 1,003 | 1,321 | 3,117 | 3,224 | ||||||
Total noninterest expense | 8,490 | 9,365 | 26,602 | 25,526 | ||||||
Income Before Income Taxes | 4,630 | 2,868 | 11,996 | 5,599 | ||||||
Income Taxes | 884 | 576 | 2,346 | 977 | ||||||
Net Income | $ 3,746 | $ 2,292 | $ 9,650 | $ 4,622 | ||||||
Dividends Per Share | $ 0.24 | $ 0.22 | $ 0.72 | $ 0.66 | ||||||
Earnings Per Share - Basic | 0.69 | 0.42 | 1.78 | 0.96 | ||||||
Earnings Per Share - Diluted | 0.69 | 0.42 | 1.77 | 0.95 | ||||||
Weighted Average Shares Outstanding - Basic | 5,433,289 | 5,414,299 | 5,433,296 | 4,834,948 | ||||||
Weighted Average Shares Outstanding - Diluted | 5,458,723 | 5,476,792 | 5,451,705 | 4,889,553 | ||||||
(Unaudited) | (Unaudited) | |||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
Selected Financial Ratios(1): | 2019 | 2018 | 2019 | 2018 | ||||||
Return on Average Assets | 1.11 | % | 0.73 | % | 0.99 | % | 0.56 | % | ||
Return on Average Equity | 9.99 | 6.77 | 9.00 | 5.42 | ||||||
Average Interest-Earning Assets to Average Interest-Bearing Liabilities | 132.89 | 133.56 | 133.95 | 133.59 | ||||||
Average Equity to Average Assets | 11.16 | 10.83 | 11.00 | 10.27 | ||||||
Net Interest Rate Spread | 3.49 | 3.42 | 3.45 | 3.38 | ||||||
Net Interest Margin | 3.70 | 3.61 | 3.67 | 3.56 | ||||||
Net Charge-Offs to Average Loans | 0.05 | 0.05 | 0.05 | 0.26 | ||||||
Efficiency Ratio | 63.86 | 76.40 | 67.95 | 76.77 | ||||||
(Unaudited) | ||||||||||
September 30, | December 31, | |||||||||
2019 | 2018 | |||||||||
Allowance For Loan Losses to Total Loans (2) | 1.05 | % | 1.05 | % | ||||||
Allowance For Loan Losses to Nonperforming Loans (2) (4) | 124.92 | 151.40 | ||||||||
Allowance For Loan Losses to Noncurrent Loans (2) (5) | 164.86 | 264.91 | ||||||||
Nonperforming Loans to Total Loans (4) | 0.84 | 0.69 | ||||||||
Noncurrent Loans to Total Loans (5) | 0.63 | 0.40 | ||||||||
Nonperforming Assets to Total Assets | 0.60 | 0.56 | ||||||||
Common Equity Tier 1 Capital (to Risk Weighted Assets) (3) | 11.97 | 11.44 | ||||||||
Tier 1 Capital (to Risk Weighted Assets) (3) | 11.97 | 11.44 | ||||||||
Total Capital (to Risk Weighted Assets) (3) | 13.09 | 12.57 | ||||||||
Tier 1 Leverage (to Adjusted Total Assets) (3) | 8.09 | 7.82 | ||||||||
Book Value Per Share | $ 27.26 | $ 25.33 | ||||||||
Outstanding Shares | 5,433,489 | 5,432,289 | ||||||||
(1) Interim period ratios are calculated on an annualized basis. | ||||||||||
(2) Loans acquired in connection with the mergers with FedFirst Financial Corporation and First West Virginia Bancorp were recorded at their estimated fair value at the acquisition date and did not include a carryover of the pre-merger allowance for loan losses. | ||||||||||
(3) Capital ratios are for Community Bank only. | ||||||||||
(4) Nonperforming loans consist of nonaccrual loans, accruing loans that are 90 days or more past due, and troubled debt restructured loans. | ||||||||||
(5) Noncurrent loans consist of nonaccrual loans and accruing loans that are 90 days or more past due. | ||||||||||
Note: | ||||||||||
Certain items previously reported may have been reclassified to conform with the current reporting period’s format. |
AVERAGE BALANCES AND YIELDS
The following tables present information regarding average balances of assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amounts of interest expense on average interest-bearing liabilities, and the resulting average yields and costs. Average balances are derived from daily balances over the periods indicated. The yields set forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense. Tax-equivalent yield adjustments have been made for tax exempt loan and securities income utilizing a marginal federal income tax rate of 21%. As such, amounts do not agree to income as reported in the consolidated financial statements. Average balances for loans are net of the allowance for loan losses, and include nonaccrual loans with a zero yield. The yields and costs for the periods indicated are derived by dividing annualized income or expense by the average balances of assets or liabilities, respectively, for the periods presented.
(Dollars in thousands) (Unaudited) | ||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||
Average | Interest and | Yield/ | Average | Interest and | Yield/ | |||||||||||||||
Balance | Dividends | Cost (4) | Balance | Dividends | Cost (4) | |||||||||||||||
Assets: | ||||||||||||||||||||
Interest-Earning Assets: | ||||||||||||||||||||
Loans, Net | $ | 930,140 | $ | 11,015 | 4.70 | % | $ | 884,623 | $ | 10,080 | 4.52 | % | ||||||||
Investment Securities | ||||||||||||||||||||
Taxable | 196,375 | 1,505 | 3.07 | 178,284 | 1,202 | 2.70 | ||||||||||||||
Exempt From Federal Tax | 27,895 | 246 | 3.53 | 46,901 | 394 | 3.36 | ||||||||||||||
Other Interest-Earning Assets | 42,323 | 405 | 3.80 | 19,894 | 200 | 3.99 | ||||||||||||||
Total Interest-Earning Assets | 1,196,733 | 13,171 | 4.37 | 1,129,702 | 11,876 | 4.17 | ||||||||||||||
Noninterest-Earning Assets | 136,658 | 110,513 | ||||||||||||||||||
Total Assets | $ | 1,333,391 | $ | 1,240,215 | ||||||||||||||||
Liabilities and | ||||||||||||||||||||
Stockholders' equity: | ||||||||||||||||||||
Interest-Bearing Liabilities: | ||||||||||||||||||||
Interest-Bearing Demand Deposits | $ | 228,287 | 303 | 0.53 | % | $ | 190,582 | 171 | 0.36 | % | ||||||||||
Savings | 219,307 | 118 | 0.21 | 206,513 | 143 | 0.27 | ||||||||||||||
Money Market | 180,446 | 241 | 0.53 | 179,998 | 221 | 0.49 | ||||||||||||||
Time Deposits | 226,948 | 1,202 | 2.10 | 210,302 | 863 | 1.63 | ||||||||||||||
Total Interest-Bearing Deposits | 854,988 | 1,864 | 0.86 | 787,395 | 1,398 | 0.70 | ||||||||||||||
Borrowings | 45,561 | 138 | 1.20 | 58,454 | 196 | 1.33 | ||||||||||||||
Total Interest-Bearing Liabilities | 900,549 | 2,002 | 0.88 | 845,849 | 1,594 | 0.75 | ||||||||||||||
Noninterest-Bearing Demand Deposits | 273,991 | 254,727 | ||||||||||||||||||
Other Liabilities | 10,062 | 5,333 | ||||||||||||||||||
Total Liabilities | 1,184,602 | 1,105,909 | ||||||||||||||||||
Stockholders' Equity | 148,789 | 134,306 | ||||||||||||||||||
Total Liabilities and | ||||||||||||||||||||
Stockholders' Equity | $ | 1,333,391 | $ | 1,240,215 | ||||||||||||||||
Net Interest Income | $ | 11,169 | $ | 10,282 | ||||||||||||||||
Net Interest Rate Spread (1) | 3.49 | % | 3.42 | % | ||||||||||||||||
Net Interest-Earning Assets (2) | $ | 296,184 | $ | 283,853 | ||||||||||||||||
Net Interest Margin (3) | 3.70 | 3.61 | ||||||||||||||||||
Return on Average Assets | 1.11 | 0.73 | ||||||||||||||||||
Return on Average Equity | 9.99 | 6.77 | ||||||||||||||||||
Average Equity to Average Assets | 11.16 | 10.83 | ||||||||||||||||||
Average Interest-Earning Assets to | ||||||||||||||||||||
Average Interest-Bearing Liabilities | 132.89 | 133.56 | ||||||||||||||||||
(1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. | ||||||||||||||||||||
(2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. | ||||||||||||||||||||
(3) Net interest margin represents annualized net interest income divided by average total interest-earning assets. | ||||||||||||||||||||
(4) Annualized. | ||||||||||||||||||||
(Dollars in thousands) (Unaudited) | ||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||
Average | Interest and | Yield/ | Average | Interest and | Yield/ | |||||||||||||||
Balance | Dividends | Cost (4) | Balance | Dividends | Cost (4) | |||||||||||||||
Assets: | ||||||||||||||||||||
Interest-Earning Assets: | ||||||||||||||||||||
Loans, Net | $ | 908,198 | $ | 32,189 | 4.74 | % | $ | 825,781 | $ | 27,374 | 4.43 | % | ||||||||
Investment Securities | ||||||||||||||||||||
Taxable | 194,533 | 4,159 | 2.85 | 139,456 | 2,624 | 2.51 | ||||||||||||||
Exempt From Federal Tax | 33,023 | 875 | 3.53 | 44,097 | 1,054 | 3.19 | ||||||||||||||
Other Interest-Earning Assets | 47,004 | 1,097 | 3.12 | 14,980 | 408 | 3.64 | ||||||||||||||
Total Interest-Earning Assets | 1,182,758 | 38,320 | 4.33 | 1,024,314 | 31,460 | 4.11 | ||||||||||||||
Noninterest-Earning Assets | 120,291 | 86,168 | ||||||||||||||||||
Total Assets | $ | 1,303,049 | $ | 1,110,482 | ||||||||||||||||
Liabilities and | ||||||||||||||||||||
Stockholders' equity: | ||||||||||||||||||||
Interest-Bearing Liabilities: | ||||||||||||||||||||
Interest-Bearing Demand Deposits | $ | 217,762 | 872 | 0.54 | % | $ | 162,210 | 412 | 0.34 | % | ||||||||||
Savings | 215,835 | 413 | 0.26 | 176,742 | 329 | 0.25 | ||||||||||||||
Money Market | 180,494 | 778 | 0.58 | 159,225 | 541 | 0.45 | ||||||||||||||
Time Deposits | 220,993 | 3,344 | 2.02 | 191,372 | 2,090 | 1.46 | ||||||||||||||
Total Interest-Bearing Deposits | 835,084 | 5,407 | 0.87 | 689,549 | 3,372 | 0.65 | ||||||||||||||
Borrowings | 47,887 | 421 | 1.18 | 77,236 | 838 | 1.45 | ||||||||||||||
Total Interest-Bearing Liabilities | 882,971 | 5,828 | 0.88 | 766,785 | 4,210 | 0.73 | ||||||||||||||
Noninterest-Bearing Demand Deposits | 267,155 | 224,883 | ||||||||||||||||||
Other Liabilities | 9,601 | 4,764 | ||||||||||||||||||
Total Liabilities | 1,159,727 | 996,432 | ||||||||||||||||||
Stockholders' Equity | 143,322 | 114,050 | ||||||||||||||||||
Total Liabilities and | ||||||||||||||||||||
Stockholders' Equity | $ | 1,303,049 | $ | 1,110,482 | ||||||||||||||||
Net Interest Income | $ | 32,492 | $ | 27,250 | ||||||||||||||||
Net Interest Rate Spread (1) | 3.45 | % | 3.38 | % | ||||||||||||||||
Net Interest-Earning Assets (2) | $ | 299,787 | $ | 257,529 | ||||||||||||||||
Net Interest Margin (3) | 3.67 | 3.56 | ||||||||||||||||||
Return on Average Assets | 0.99 | 0.56 | ||||||||||||||||||
Return on Average Equity | 9.00 | 5.42 | ||||||||||||||||||
Average Equity to Average Assets | 11.00 | 10.27 | ||||||||||||||||||
Average Interest-Earning Assets to | ||||||||||||||||||||
Average Interest-Bearing Liabilities | 133.95 | 133.59 | ||||||||||||||||||
(1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. | ||||||||||||||||||||
(2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. | ||||||||||||||||||||
(3) Net interest margin represents net interest income divided by average total interest-earning assets. | ||||||||||||||||||||
(4) Annualized. |