0001193125-18-017948.txt : 20180124 0001193125-18-017948.hdr.sgml : 20180124 20180124073456 ACCESSION NUMBER: 0001193125-18-017948 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20180123 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20180124 DATE AS OF CHANGE: 20180124 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MIDDLEFIELD BANC CORP CENTRAL INDEX KEY: 0000836147 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 341585111 STATE OF INCORPORATION: OH FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-36613 FILM NUMBER: 18543970 BUSINESS ADDRESS: STREET 1: 15985 E HIGH ST STREET 2: P O BOX 35 CITY: MIDDLEFILED STATE: OH ZIP: 44062-9263 BUSINESS PHONE: 4406321666 MAIL ADDRESS: STREET 1: 15985 EAST HIGH STREET STREET 2: P O BOX 35 CITY: MIDDLEFIELD STATE: OH ZIP: 44062-9263 8-K 1 d517100d8k.htm 8-K 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM 8 – K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

January 23, 2018

(Date of Report: Date of earliest event reported)

 

 

Middlefield Banc Corp.

(Exact name of registrant as specified in its charter)

Ohio

(State or other jurisdiction of incorporation)

001-36613

(Commission File Number)

34-1585111

(I.R.S. Employer Identification Number)

15985 East High Street

Middlefield, Ohio 44062

(Address of principal executive offices, including zip code)

(440) 632-1666

(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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company  ☐

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 standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

The following information is furnished under Item 2.02. On January 23, 2018, Middlefield Banc Corp. issued a press release announcing financial results for the three month and twelve month periods ended December 31, 2017. A copy of the press release is attached hereto as Exhibit 99 and is incorporated herein by this reference.

The information contained or incorporated by reference in this current report on Form 8-K may contain forward-looking statements, including certain plans, expectations, goals, and projections, which are subject to numerous assumptions, risks, and uncertainties. Actual results could differ materially from those contained or implied by such statements for a variety of factors, including: changes in economic conditions; movements in interest rates; competitive pressures on product pricing and services; success and timing of business strategies; the nature, extent, and timing of governmental actions and reforms; and extended disruption of vital infrastructure. All forward-looking statements included in this current report on Form 8-K are based on information available at the time of the report. Middlefield Banc Corp. assumes no obligation to update any forward-looking statement.

 

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

 

  (c) Exhibits.

The following exhibits are furnished herewith:

EXHIBITS

 

99    January 23, 2018 press release of Middlefield Banc Corp.

SIGNATURES

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.

 

      MIDDLEFIELD BANC CORP.
Date: January 24, 2018       /s/ James R. Heslop, II
      Executive Vice President and COO
 EX-99 2 d517100dex99.htm EX-99 EX-99

Exhibit 99

 

LOGO

15985 East High Street

P. O. Box 35

Middlefield, Ohio 44062

Phone: (440) 632-1666    FAX: (440) 632-1700

www.middlefieldbank.bank

 

 

 

PRESS RELEASE

 

 

Company Contact:    Investor and Media Contact:

Thomas G. Caldwell

President/Chief Executive Officer

Middlefield Banc Corp.

(440) 632-1666 Ext. 3200

tcaldwell@middlefieldbank.com

   

Andrew M. Berger

Managing Director

SM Berger & Company, Inc.

(216) 464-6400

andrew@smberger.com

Middlefield Banc Corp. Reports 2017 Full Year and Fourth Quarter Financial Results

MIDDLEFIELD, OHIO, January 23, 2018 ◆◆◆◆ Middlefield Banc Corp. (NASDAQ: MBCN) today reported financial results for the three and twelve months ended December 31, 2017.

2017 Financial Highlights (on a year-over-year basis unless noted):

 

  •   Net income increased 47.4% to $9.5 million

 

  •   Earnings per diluted share increased 2.3% to $3.10 per share, which includes a 43.7% increase in the average number of diluted shares outstanding

 

  •   Return on average tangible common equity was 10.15%, compared to 10.01%

 

  •   Total loans increased 51.6% to $923.2 million

 

  •   Nonperforming assets to total assets declined to 1.23% from 1.65%

 

  •   Net interest income improved 44.7% to $37.3 million

 

  •   Equity to assets was 10.83%, compared to 9.77%

“We continued to enhance our operating and financial platform during 2017, which will be the base of our long-term success going forward,” stated Thomas G. Caldwell, President and Chief Executive Officer. During the year, we successfully integrated the Liberty Bank N.A. merger, and significantly grew our loan portfolio, which included a $44.7 million increase during the past three months. We ended the year with record total assets and net income, despite one-time merger related expenses, and the write down in our deferred tax asset.”

“Middlefield’s community-oriented banking values and customer-centric approach is helping us differentiate the Bank within our Northeast and Central Ohio markets. To this end, I am pleased with the growth we are achieving in Central Ohio. In 12 months and ahead of schedule, Middlefield’s Sunbury location that was opened during the 2016 fourth quarter has become profitable. We expect Middlefield’s brand will continue to grow throughout Central Ohio, and we anticipate opening our fourth Central Ohio location in Powell during 2018.”

Mr. Caldwell concluded, “Our core Northeast Ohio and growing Central Ohio markets, both offer significant expansion opportunities and we believe we are well positioned to increase Middlefield’s market share throughout our footprint. Within the organization, we remain committed to providing our communities with a customer-centric, community-oriented banking approach. As we look to the new year, we are optimistic 2018 will be another good year for the Bank.”

Net income for the twelve months ended December 31, 2017, was $9.5 million, or $3.10 per diluted share, compared to net income for the twelve months ended December 31, 2016, of $6.4 million, or $3.03 per diluted share. Net income for the 2017 fourth quarter was $2.4 million, or $0.73 per diluted share, compared to net income for the 2016 fourth quarter of $1.7 million, or $0.73 per diluted share.

Annualized returns on average equity (“ROE”) and average assets (“ROA”) were 8.52% and 0.88%, respectively, for the 2017 twelve-month period, compared with 9.33% and 0.85% for the same period last year. ROE and ROA for the 2017 fourth quarter were 7.72% and 0.86%, respectively, compared with 9.02% and 0.85% for the 2016 fourth quarter.

Return on average tangible common equity(1) was 10.15% for the 2017 twelve-month period, compared with 10.01%. Return on average tangible common equity(1) for the 2017 fourth quarter was 9.05%, compared to 9.69% for the 2016 fourth quarter.

As a result of the Tax Cut and Jobs Act that was signed into law on December 22, 2017, during the 2017 fourth quarter, the Company had a write down to its deferred tax asset of $547 thousand. This one-time, non-cash item impacted 2017 fourth quarter and twelve-month earnings by $0.18 per diluted share. In addition, during the 2017 fourth quarter and twelve-month period, the Company incurred one-time merger related costs associated with the Liberty merger of $28 thousand, and $1.1 million, respectively.

Income Statement

Net interest income for the 2017 twelve-month period increased 44.7% to $37.3 million, compared to $25.8 million for the same period last year. The net interest margin for the 2017 twelve-month period was 3.82%, compared to 3.79% for the same period last year. Net interest income for the 2017 fourth quarter was $9.8 million, compared to $6.7 million for the 2016 fourth quarter. The net interest margin for the 2017 fourth quarter was 3.84%, compared to 3.84% for the same period of 2016. The 45.3% increase in net interest income for the 2017 fourth quarter was largely a result of a 56.2% increase in interest and fees on loans.

For the 2017 full year, noninterest income increased 22.7% to $4.9 million, compared to $4.0 million for the same period last year. Noninterest income for the 2017 fourth quarter was up 2.0% to $918 thousand, compared to the fourth quarter of 2016.

Noninterest expense for the 2017 full year increased 31.7% to $27.5 million, compared to $20.9 million last year. For the 2017 fourth quarter, noninterest expense increased 25.4% to $6.2 million, compared to $5.0 million for the same period last year.

“Asset quality remains strong despite the significant increase in assets we have experienced as a result of year-over-year organic loan growth and the contribution of Liberty’s loan portfolio. At December 31, 2017, nonperforming assets to total assets declined to 1.23%, from 1.65% for the same period last year,” said Donald L. Stacy, Chief Financial Officer. “Economic activity within our local economies remains stable, while conservative underwriting practices, and proactive risk management continues to help improve loan quality. During 2017, Middlefield incurred $1.1 million of nonrecurring merger related expenses. As we enter 2018, we do not anticipate any additional costs associated with the Liberty merger. As a result, given our current cost structure and outlook, we believe profitability should improve throughout 2018.”

Balance Sheet

Total assets at December 31, 2017, increased 40.4% to $1.11 billion, from $787.8 million at December 31, 2016. Net loans at December 31, 2017, were $916.0 million, compared to $602.5 million at December 31, 2016. The 52.0% year-over-year increase in total net loans was across all loan categories, and was a result of organic growth and the contribution of the Liberty merger. Specifically, commercial mortgage loans increased 75.5%, residential mortgage loans increased 17.5%, commercial and industrial loans increased 67.2%, real estate construction loans increased 98.3%, and consumer installment loans increased 318.3%.

Total deposits at December 31, 2017, increased 39.4% to $878.2 million from $629.9 million at December 31, 2016. The company continued to proactively manage its cost of funds. The investment portfolio, which is entirely classified as available for sale, was $95.3 million at December 31, 2017, compared with $114.4 million at December 31, 2016.

Stockholders’ Equity, Dividends and Shares Outstanding

At December 31, 2017, stockholders’ equity was $119.9 million, an increase of 55.7% from $77.0 million at December 31, 2016. Tangible stockholders’ equity(1) at December 31, 2017was $102.0 million, an increase of 41.0% from $72.4 million at December 31, 2016. On a per share basis, tangible stockholders’ equity was $31.71 at December 31, 2017, compared to $32.10 at December 31, 2016. The 1.2% decline in tangible book value per share reflects the increase in the number of shares outstanding as a result of the private placement of stock that closed in May 2017. For 2017, the company paid cash dividends of $1.08 per share. The dividend payout ratio for 2017 was 35.52%, compared to 36.18% last year.

At December 31, 2017, the company had an equity to assets leverage ratio of 10.83%, compared to 9.77% at December 31, 2016.

Asset Quality    

The provision for loan losses was $430 thousand for the 2017 fourth quarter, compared to $255 thousand for the 2016 fourth quarter. Nonperforming assets at December 31, 2017, were $13.6 million, compared to $13.0 million at December 31, 2016. Net charge-offs for the 2017 fourth quarter were $92 thousand, or 0.04% of average loans, annualized, compared to a net recovery of $9 thousand, or (0.01)% of average loans, annualized for the same 2016 period. For 2017, net charge-offs were $453 thousand, or 0.05% of average loans compared to $357 thousand, or 0.06% of average loans for 2016. The allowance for loan losses at December 31, 2017, stood at $7.2 million, or 0.78% of total loans, compared to $6.6 million, or 1.08% of total loans at December 31, 2016.

Middlefield Banc Corp., headquartered in Middlefield, Ohio, is a bank holding company with total assets of $1.11 billion at December 31, 2017. The bank operates 14 full-service banking centers and an LPL Financial® brokerage office serving Beachwood, Chardon, Cortland, Dublin, Garrettsville, Mantua, Middlefield, Newbury, Orwell, Solon, Sunbury, Twinsburg, and Westerville. The Bank also operates a Loan Production Office in Mentor, Ohio. Additional information is available at www.middlefieldbank.bank.

(1) This press release includes disclosure of Middlefield Banc Corp.’s tangible book value per share and return on average tangible equity, which are financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed by GAAP. Middlefield Banc Corp. believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Middlefield Banc Corp.’s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. The reconciliations of non-GAAP financial measures are included in the tables following Consolidated Financial Highlights below.

This press release of Middlefield Banc Corp. and the reports Middlefield Banc Corp. files with the Securities and Exchange Commission often contain “forward-looking statements” relating to present or future trends or factors affecting the banking industry and, specifically, the financial operations, markets and products of Middlefield Banc Corp. These forward-looking statements involve certain risks and uncertainties. There are a number of important factors that could cause Middlefield Banc Corp.’s future results to differ materially from historical performance or projected performance. These factors include, but are not limited to: (1) a significant increase in competitive pressures among financial institutions; (2) changes in the interest rate environment that may reduce interest margins; (3) changes in prepayment speeds, charge-offs and loan loss provisions; (4) less favorable than expected general economic conditions; (5) legislative or regulatory changes that may adversely affect businesses in which Middlefield Banc Corp. is engaged; (6) technological issues which may adversely affect Middlefield Banc Corp.’s financial operations or customers; (7) changes in the securities markets; or (8) risk factors mentioned in the reports and registration statements Middlefield Banc Corp. files with the Securities and Exchange Commission. Middlefield Banc Corp. undertakes no obligation to release revisions to these forward-looking statements or to reflect events or circumstances after the date of this press release.

MIDDLEFIELD BANC CORP.

Consolidated Selected Financial Highlights

(Dollar amounts in thousands)

(2017 unaudited)

 

Balance Sheets (period end)

    December 31,
2017		     September 30,
2017		     June 30,
2017		     March 31,
2017		     December 31,
2016		  

ASSETS

           

Cash and due from banks

    $ 39,886     $ 47,731     $ 37,971     $ 61,364     $ 31,395  

Federal funds sold

      —         1,200       1,600       1,000       1,100  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Cash and cash equivalents

      39,886       48,931       39,571       62,364       32,495  

Investment securities available for sale, at fair value

      95,283       98,334       104,951       110,452       114,376  

Loans held for sale

      463       5,930       9,791       9,462       634  

Loans

      923,213       878,541       867,864       837,158       609,140  

Less allowance for loan and lease losses

      7,190       6,852       6,605       6,720       6,598  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net loans

      916,023       871,689       861,259       830,438       602,542  

Premises and equipment, net

      11,853       11,768       11,511       11,481       11,203  

Goodwill

      15,071       15,299       15,435       15,646       4,559  

Core deposit intangibles

      2,749       2,848       2,948       3,051       36  

Bank-owned life insurance

      15,652       15,542       15,432       15,334       13,540  

Other real estate owned

      212       557       650       1,634       934  

Accrued interest and other assets

      9,144       9,928       9,528       9,605       7,502  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

TOTAL ASSETS

    $ 1,106,336     $ 1,080,826     $ 1,071,076     $ 1,069,467     $ 787,821  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     December 31,
2017		     September 30,
2017		     June 30,
2017		     March 31,
2017		     December 31,
2016		  

LIABILITIES

           

Deposits:

           

Noninterest-bearing demand

    $ 192,438     $ 181,550     $ 172,199     $ 162,614     $ 133,630  

Interest-bearing demand

      83,990       91,184       87,084       94,605       59,560  

Money market

      150,277       161,101       160,858       162,843       74,940  

Savings

      208,502       212,371       181,259       183,845       172,370  

Time

      242,987       251,449       245,383       243,944       189,434  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total deposits

      878,194       897,655       846,783       847,851       629,934  

Short-term borrowings

      74,707       20,274       63,388       76,213       68,359  

Other borrowings

      29,065       39,273       39,346       39,388       9,437  

Accrued interest and other liabilities

      4,507       5,130       4,357       6,700       3,131  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

TOTAL LIABILITIES

      986,473       962,332       953,874       970,152       710,861  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

STOCKHOLDERS’ EQUITY

           

Common equity

      84,859       84,722       84,587       69,123       47,943  

Retained earnings

      47,431       45,913       44,318       42,678       41,334  

Accumulated other comprehensive income

      1,091       1,377       1,815       1,032       1,201  

Treasury stock

      (13,518 )      (13,518 )      (13,518 )      (13,518 )      (13,518 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

TOTAL STOCKHOLDERS’ EQUITY

      119,863       118,494       117,202       99,315       76,960  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

    $ 1,106,336     $ 1,080,826     $ 1,071,076     $ 1,069,467     $ 787,821  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

MIDDLEFIELD BANC CORP.

Consolidated Selected Financial Highlights

(Dollar amounts in thousands) (2017 unaudited)

 

     For the Three Months Ended     For the Twelve Months
Ended		  

Statements of Income

    December 31,
2017		     September 30,
2017		      June 30,
2017		      March 31,
2017		      December 31,
2016		     December 31,
2017		      December 31,
2016		  

INTEREST AND DIVIDEND INCOME

                   

Interest and fees on loans

    $ 10,696     $ 10,443      $ 9,916      $ 9,180      $ 6,849     $ 40,235      $ 25,798  

Interest-bearing deposits in other institutions

      80       107        92        49        11       328        53  

Federal funds sold

      6       5        1        3        4       15        20  

Investment securities:

                   

Taxable interest

      162       159        223        218        241       762        1,106  

Tax-exempt interest

      560       579        630        637        686       2,406        2,913  

Dividends on stock

      60       37        40        112        30       249        104  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total interest and dividend income

      11,564       11,330        10,902        10,199        7,821       43,995        29,994  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

INTEREST EXPENSE

                   

Deposits

      1,530       1,468        1,227        1,125        953       5,350        3,618  

Short-term borrowings

      101       202        273        177        34       753        322  

Other borrowings

      131       148        125        140        86       544        250  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total interest expense

      1,762       1,818        1,625        1,442        1,073       6,647        4,190  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

NET INTEREST INCOME

      9,802       9,512        9,277        8,757        6,748       37,348        25,804  

Provision for loan losses

      430       280        170        165        255       1,045        570  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

      9,372       9,232        9,107        8,592        6,493       36,303        25,234  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

NONINTEREST INCOME

                   

Service charges on deposit accounts

      478       479        449        469        497       1,875        1,940  

Investment securities gains, net

      —         398        —          488        —         886        303  

Earnings on bank-owned life insurance

      115       109        98        109        106       431        403  

Gains on sale of loans

      106       255        231        234        97       826        419  

Other income

      219       200        211        211        200       841        894  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total noninterest income

      918       1,441        989        1,511        900       4,859        3,959  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

NONINTEREST EXPENSE

                   

Salaries and employee benefits

      3,134       3,725        3,203        3,696        2,509       13,758        10,249  

Occupancy expense

      449       476        433        488        319       1,846        1,252  

Equipment expense

      261       242        266        281        291       1,050        991  

Data processing costs

      416       468        588        320        407       1,792        1,335  

Ohio state franchise tax

      186       186        186        186        184       744        632  

Federal deposit insurance expense

      165       165        135        68        42       533        438  

Professional fees

      522       434        423        373        384       1,752        1,441  

Net (gain) loss on other real estate owned

      (58 )      18        15        55        (366 )      30        (119 ) 

Advertising expenses

      161       248        164        248        130       821        734  

Core deposit intangible amortization

      98       101        103        72        10       374        40  

Merger expense

      28       338        307        387        —         1,060        —    

Other expense

      855       896        881        1,093        1,047       3,725        3,879  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total noninterest expense

      6,217       7,297        6,704        7,267        4,957       27,485        20,872  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Income before income taxes

      4,073       3,376        3,392        2,836        2,436       13,677        8,321  

Income taxes

      1,687       914        885        736        776       4,222        1,905  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

NET INCOME

    $ 2,386     $ 2,462      $ 2,507      $ 2,100      $ 1,660     $ 9,455      $ 6,416  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

MIDDLEFIELD BANC CORP.

Consolidated Selected Financial Highlights

(Dollar amounts in thousands, except per share amounts)

 

     For the Three Months Ended     For the Twelve Months Ended  
     December 31,
2017		     September 30,
2017		     June 30,
2017		     March 31,
2017		     December 31,
2016		     December 31,
2017		     December 31,
2016		  

Per common share data

               

Net income per common share – basic

    $ 0.73     $ 0.77     $ 0.84     $ 0.78     $ 0.74     $ 3.12     $ 3.04  

Net income per common share – diluted

    $ 0.73     $ 0.76     $ 0.83     $ 0.78     $ 0.73     $ 3.10     $ 3.03  

Dividends declared per share

    $ 0.27     $ 0.27     $ 0.27     $ 0.27     $ 0.27     $ 1.08     $ 1.08  

Book value per share (period end)

    $ 37.25     $ 36.86     $ 36.49     $ 35.42     $ 34.14     $ 37.25     $ 34.14  

Tangible book value per share (period end) (2)(3)

    $ 31.71     $ 31.21     $ 30.77     $ 28.76     $ 32.10     $ 31.71     $ 32.10  

Dividend payout ratio

      36.38 %      35.22 %      34.58 %      36.00 %      36.63 %      35.52 %      36.18 % 

Dividends declared

    $ 868     $ 867     $ 867     $ 756     $ 608     $ 3,358     $ 2,318  

Dividend yield

      2.24 %      2.34 %      2.14 %      2.39 %      2.79 %      2.24 %      2.79 % 

Average shares outstanding – basic

      3,215,300       3,212,335       3,000,451       2,679,816       2,251,412       3,028,950       2,107,857  

Average shares outstanding – diluted

      3,231,791       3,223,753       3,014,140       2,692,015       2,264,712       3,045,779       2,119,214  

Period ending shares outstanding

      3,217,716       3,214,737       3,211,748       2,803,557       2,254,253       3,217,716       2,254,253  

Selected ratios

               

Return on average assets

      0.86 %      0.90 %      0.94 %      0.84 %      0.85 %      0.88 %      0.85 % 

Return on average equity

      7.72 %      8.12 %      9.34 %      8.73 %      9.02 %      8.52 %      9.33 % 

Return on average tangible common equity (2)(4)

      9.05 %      9.57 %      11.30 %      10.49 %      9.69 %      10.15 %      10.01 % 

Yield on earning assets

      4.51 %      4.52 %      4.45 %      4.45 %      4.43 %      4.48 %      4.37 % 

Cost of interest bearing liabilities

      0.89 %      0.92 %      0.83 %      0.78 %      0.77 %      0.86 %      0.75 % 

Net interest spread

      3.62 %      3.60 %      3.62 %      3.67 %      3.66 %      3.63 %      3.61 % 

Net interest margin

      3.84 %      3.81 %      3.80 %      3.84 %      3.84 %      3.82 %      3.79 % 

Efficiency (1)

      55.58 %      63.96 %      63.30 %      68.58 %      62.54 %      62.40 %      66.63 % 

Equity to assets at period end

      10.83 %      10.96 %      10.94 %      9.29 %      9.77 %      10.83 %      9.77 % 

 

(1) The efficiency ratio is calculated by dividing non-interest expense less amortization of intangibles by the sum of net interest income on a fully taxable equivalent basis plus non-interest income.
(2) See reconciliation of non-GAAP measures below
(3) Calculated by dividing tangible common equity by shares outstanding
(4) Calculated by dividing annualized net income for each period by average tangible common equity

 

     For the Three Months Ended  

End of Period Loan Balances

    December 31,
2017		     September 30,
2017		     June 30,
2017		     March 31,
2017		     December 31,
2016		  

Commercial and industrial

    $ 101,346     $ 99,314     $ 97,160     $ 91,777     $ 60,630  

Real estate – construction

      47,017       40,760       35,571       29,238       23,709  

Real estate – mortgage:

           

Residential

      318,157       316,191       308,519       300,508       270,830  

Commercial

      437,947       403,135       406,670       395,102       249,490  

Consumer installment

      18,746       19,141       19,944       20,533       4,481  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 923,213     $ 878,541     $ 867,864     $ 837,158     $ 609,140  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Asset quality data

    December 31,
2017		     September 30,
2017		     June 30,
2017		     March 31,
2017		     December 31,
2016		  

(Dollar amounts in thousands)

           

Nonaccrual loans

    $ 8,433     $ 8,525     $ 10,213     $ 6,545     $ 5,892  

Troubled debt restructuring

      4,982       5,608       5,990       5,515       6,151  

90 day past due and accruing

      —         268       199       35       —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Nonperforming loans

      13,415       14,401       16,402       12,095       12,043  

Other real estate owned

      212       557       650       1,634       934  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Nonperforming assets

    $ 13,627     $ 14,958     $ 17,052     $ 13,729     $ 12,977  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Allowance for loan losses

    $ 7,190     $ 6,852     $ 6,605     $ 6,720     $ 6,598  

Allowance for loan losses/total loans

      0.78 %      0.78 %      0.76 %      0.80 %      1.08 % 

Net charge-offs (recoveries):

           

Quarter-to-date

    $ 92     $ 33     $ 285     $ 43     $ (9 ) 

Year-to-date

    $ 453     $ 361     $ 328     $ 43     $ 357  

Net charge-offs to average loans, annualized

           

Quarter-to-date

      0.04 %      0.02 %      0.13 %      0.02 %      -0.01 % 

Year-to-date

      0.05 %      0.06 %      0.08 %      0.02 %      0.06 % 

Nonperforming loans/total loans

      1.45 %      1.64 %      1.89 %      1.44 %      1.98 % 

Allowance for loan losses/nonperforming loans

      53.60 %      47.58 %      40.27 %      55.56 %      54.79 % 

Nonperforming assets/total assets

      1.23 %      1.38 %      1.59 %      1.28 %      1.65 % 

 

Reconciliation of Common Stockholders’ Equity to Tangible
Common Equity		    For the Three Months Ended      For the Twelve Months Ended  
     December 31,
2017		      September 30,
2017		      June 30,
2017		      March 31,
2017		      December 31,
2016		      December 31,
2017		      December 31,
2016		  

Stockholders’ Equity

    $ 119,863      $ 118,494      $ 117,202      $ 99,315      $ 76,960      $ 119,863      $ 76,960  

Less Goodwill and other intangibles

      17,820        18,147        18,383        18,697        4,595        17,820        4,595  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Tangible Common Equity

    $ 102,043      $ 100,347      $ 98,819      $ 80,618      $ 72,365      $ 102,043      $ 72,365  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Average Stockholders’ Equity

    $ 122,586      $ 120,310      $ 107,615      $ 97,585      $ 72,979      $ 110,966      $ 68,741  

Less Average Goodwill and other intangibles

      17,987        18,251        18,633        16,402        5,004        17,818        4,615  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Average Tangible Common Equity

    $ 104,599      $ 102,059      $ 88,982      $ 81,183      $ 67,975      $ 93,148      $ 64,126  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
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