Southern States Bancshares, Inc. (NASDAQ: SSBK) (“Southern States”
or the “Company”), the holding company for Southern States Bank, an
Alabama state-chartered commercial bank (the “Bank”), today
reported net income of $8.9 million, or $0.99 diluted earnings per
share, for the fourth quarter of 2023. This compares to net income
of $6.6 million, or $0.73 diluted earnings per share, for the third
quarter of 2023, and net income of $10.6 million, or $1.18 diluted
earnings per share, for the fourth quarter of 2022. The Company
reported core net income of $7.3 million, or $0.81 diluted core
earnings per share, for the fourth quarter of 2023. This compares
to core net income of $9.6 million, or $1.06 diluted core earnings
per share, for the third quarter of 2023, and core net income of
$8.1 million, or $0.90 diluted core earnings per share, for the
fourth quarter of 2022 (see “Reconciliation of Non-GAAP Financial
Measures”).
CEO Commentary
Mark Chambers, Chief Executive Officer and President of Southern
States, said, “We produced solid fourth quarter earnings,
highlighted by annualized sequential loan growth of 24.7% and
annualized deposit growth of 21.1%. Our bankers remain active
across our vibrant footprint, cultivating new business
relationships and winning market share. We continue to maintain a
sharp focus on credit management to ensure the ongoing health of
our loan portfolio as evidenced by our low level of nonperforming
loans, which totaled just 0.06% of the overall portfolio.” |
“Our results were impacted by ongoing funding expense pressure due
to elevated interest rates and increased deposit costs. Our net
interest margin, while robust at 3.69% to finish the year, declined
nine basis points from the prior quarter. Our loan yields increased
substantially throughout the year and rose five basis points in the
fourth quarter, but this momentum was offset by higher deposit
costs.” |
“Overall, we delivered exceptional results and returns on behalf of
our shareholders throughout 2023, further fortifying our
foundation. We enter the new year with strong capital and liquidity
positions, as well as pristine credit quality, putting Southern
States in excellent position to pursue prudent growth in
2024.” |
Net Interest Income and Net Interest Margin
|
Three Months Ended |
|
% Change December 31, 2023
vs. |
December 31,2023 |
|
September 30,2023 |
|
December 31,2022 |
|
September 30,2023 |
|
December 31,2022 |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average interest-earning assets |
$ |
2,195,381 |
|
|
$ |
2,175,103 |
|
|
$ |
1,893,069 |
|
|
0.9 |
% |
|
16.0 |
% |
Net interest income |
$ |
20,404 |
|
|
$ |
20,731 |
|
|
$ |
20,884 |
|
|
(1.6 |
)% |
|
(2.3 |
)% |
Net interest margin |
|
3.69 |
% |
|
|
3.78 |
% |
|
|
4.38 |
% |
|
(9 |
)bps |
|
(69 |
)bps |
|
|
|
|
|
|
|
|
|
|
Net interest income for the fourth quarter of
2023 was $20.4 million, a decrease of 1.6% from $20.7 million for
the third quarter of 2023. The decrease was primarily driven by a
higher cost of interest-bearing deposits due to both rising
interest rates and growth, which more than offset a higher yield on
interest-earning assets resulting from a combination of rising
rates and growth. The yield on loans benefited from significant
linked-quarter growth.
Relative to the fourth quarter of 2022, net
interest income decreased $480,000, or 2.3%. The decrease was
substantially the result of the accelerated rise in the cost of
interest-bearing liabilities due to the rapid rise in interest
rates and growth, which outpaced a sharp improvement in the yield
on interest-earning assets due to both year-over-year growth and
higher interest rates. A portion of the growth in interest-bearing
deposits is due to migration from noninterest-bearing into
interest-bearing deposits.
Net interest margin for the fourth quarter of
2023 was 3.69%, compared to 3.78% for the third quarter of 2023.
The decrease was primarily due to an increase in the cost of
interest-bearing deposits, which was greater than the increase in
the yield on interest-earning assets.
Relative to the fourth quarter of 2022, net
interest margin decreased from 4.38%. The decrease was primarily
the result of the rapid increase in interest rates, which
accelerated the cost of interest-bearing liabilities at a greater
pace than the yield received on interest-earning assets. A shift
from noninterest-bearing deposits into interest-bearing deposits
also had a negative impact on net interest margin.
Noninterest Income
|
Three Months Ended |
|
% Change December 31, 2023
vs. |
December 31,2023 |
|
September 30,2023 |
|
December 31,2022 |
|
September 30,2023 |
|
December 31,2022 |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
$ |
441 |
|
$ |
442 |
|
|
$ |
431 |
|
|
(0.2 |
)% |
|
2.3 |
% |
Swap fees |
|
70 |
|
|
453 |
|
|
|
2 |
|
|
(84.5 |
)% |
|
3400.0 |
% |
SBA/USDA fees |
|
70 |
|
|
74 |
|
|
|
70 |
|
|
(5.4 |
)% |
|
— |
% |
Mortgage origination fees |
|
87 |
|
|
158 |
|
|
|
98 |
|
|
(44.9 |
)% |
|
(11.2 |
)% |
Net loss on securities |
|
98 |
|
|
(12 |
) |
|
|
(86 |
) |
|
(916.7 |
)% |
|
(214.0 |
)% |
Employee retention credit and
related revenue (“ERC”) |
|
— |
|
|
(5,100 |
) |
|
|
— |
|
|
N/A |
|
|
N/A |
|
Other operating income |
|
2,352 |
|
|
1,091 |
|
|
|
4,088 |
|
|
115.6 |
% |
|
(42.5 |
)% |
Total noninterest income |
$ |
3,118 |
|
$ |
(2,894 |
) |
|
$ |
4,603 |
|
|
(207.7 |
)% |
|
(32.3 |
)% |
|
|
|
|
|
|
|
|
|
|
Noninterest income for the fourth quarter of
2023 was $3.1 million, compared to noninterest net expense of $2.9
million for the third quarter of 2023. The third quarter of 2023
included a $5.1 million payment to the IRS for the return of the
ERC, which was received during the second quarter of 2023. After
reviewing revised IRS guidelines during the third quarter of 2023,
the Company determined to return the full $5.1 million to the IRS
and recorded a payable. Also contributing to the increase during
the fourth quarter of 2023 was a $1.9 million fee related to the
early payoff of a $12.0 million purchased loan. As this is
unusually large and atypical for the Bank, it was determined to
record it as noninterest income instead of interest income, which
would have impacted the net interest margin. The increase was
partially offset by a $383,000 decrease in swap fees during the
fourth quarter of 2023.
Relative to the fourth quarter of 2022,
noninterest income decreased 32.3% from $4.6 million. The decrease
was substantially due to a $2.6 million gain on the sale of two
branches during the fourth quarter of 2022. This decrease was
significantly offset by the aforementioned $1.9 million fee related
to the early payoff of the $12.0 million loan in the fourth quarter
of 2023.
Noninterest Expense
|
Three Months Ended |
|
% Change December 31, 2023
vs. |
December 31,2023 |
|
September 30,2023 |
|
December 31,2022 |
|
September 30,2023 |
|
December 31,2022 |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
$ |
5,739 |
|
$ |
5,752 |
|
|
$ |
6,738 |
|
(0.2 |
)% |
|
(14.8 |
)% |
Equipment and occupancy
expenses |
|
681 |
|
|
718 |
|
|
|
730 |
|
(5.2 |
)% |
|
(6.7 |
)% |
Data processing fees |
|
639 |
|
|
650 |
|
|
|
711 |
|
(1.7 |
)% |
|
(10.1 |
)% |
Regulatory assessments |
|
355 |
|
|
322 |
|
|
|
165 |
|
10.2 |
% |
|
115.2 |
% |
Professional fees related to
ERC |
|
— |
|
|
(1,243 |
) |
|
|
— |
|
N/A |
|
|
N/A |
|
Other operating expenses |
|
2,303 |
|
|
2,370 |
|
|
|
2,092 |
|
(2.8 |
)% |
|
10.1 |
% |
Total noninterest
expenses |
$ |
9,717 |
|
$ |
8,569 |
|
|
$ |
10,436 |
|
13.4 |
% |
|
(6.9 |
)% |
|
|
|
|
|
|
|
|
|
|
Noninterest expense for the fourth quarter of
2023 was $9.7 million, an increase of 13.4% from $8.6 million for
the third quarter of 2023. The increase was substantially related
to the aforementioned return of ERC, which also resulted in a $1.2
million refund of professional fees related to the ERC, to which a
receivable was recorded.
Relative to the fourth quarter of 2022,
noninterest expense decreased 6.9% from $10.4 million. The decrease
was primarily due to a decrease in salaries and benefits during the
fourth quarter of 2023 and the recognition of a $285,000 credit for
provision for unfunded loan commitments, which was not recognized
during 2022. The fourth quarter of 2022 included expense associated
with the issuance of restricted stock units in a deferred
compensation plan which was significantly less in the fourth
quarter of 2023. The decrease was partially offset by an increase
in legal fees, in addition to an increase in FDIC insurance.
Loans and Credit Quality
|
Three Months Ended |
|
% Change December 31, 2023
vs. |
December 31,2023 |
|
September 30,2023 |
|
December 31,2022 |
|
September 30,2023 |
|
December 31,2022 |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans |
|
1,890,677 |
|
|
|
1,779,846 |
|
|
|
1,592,707 |
|
|
6.2 |
% |
|
18.7 |
% |
Unearned income |
|
(6,169 |
) |
|
|
(5,698 |
) |
|
|
(5,543 |
) |
|
8.3 |
% |
|
11.3 |
% |
Loans, net of unearned income
(“Loans”) |
$ |
1,884,508 |
|
|
$ |
1,774,148 |
|
|
$ |
1,587,164 |
|
|
6.2 |
% |
|
18.7 |
% |
Average loans, net of unearned
(“Average loans”) |
$ |
1,814,484 |
|
|
$ |
1,740,582 |
|
|
$ |
1,563,255 |
|
|
4.2 |
% |
|
16.1 |
% |
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
(“NPL”) |
$ |
1,177 |
|
|
$ |
1,082 |
|
|
$ |
2,245 |
|
|
8.8 |
% |
|
(47.6 |
)% |
Provision for credit
losses |
$ |
2,579 |
|
|
$ |
773 |
|
|
$ |
1,938 |
|
|
233.6 |
% |
|
33.1 |
% |
Allowance for credit losses
(“ACL”) |
$ |
24,378 |
|
|
$ |
22,181 |
|
|
$ |
20,156 |
|
|
9.9 |
% |
|
20.9 |
% |
Net charge-offs
(recoveries) |
$ |
382 |
|
|
$ |
(23 |
) |
|
$ |
205 |
|
|
(1760.9 |
)% |
|
86.3 |
% |
NPL to gross loans |
|
0.06 |
% |
|
|
0.06 |
% |
|
|
0.14 |
% |
|
|
|
|
Net charge-offs (recoveries)
to average loans(1) |
|
0.08 |
% |
|
|
(0.01 |
)% |
|
|
0.05 |
% |
|
|
|
|
ACL to loans |
|
1.29 |
% |
|
|
1.25 |
% |
|
|
1.27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Ratio is annualized. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned income, were $1.9 billion
at December 31, 2023, up $110.4 million from
September 30, 2023 and up $297.3 million from
December 31, 2022. The linked-quarter and year-over-year
increases in loans were primarily attributable to new business
growth across our footprint.
Nonperforming loans totaled $1.2 million, or
0.06% of gross loans, at December 31, 2023, compared with $1.1
million, or 0.06% of gross loans, at September 30, 2023, and
$2.2 million, or 0.14% of gross loans, at December 31, 2022.
The $1.1 million net decrease in nonperforming loans from
December 31, 2022, was primarily attributable to two loans
that were paid-off, one loan that was charged-off and another loan
that was moved back to accruing status.
The Company recorded a provision for credit
losses of $2.6 million for the fourth quarter of 2023, compared to
$773,000 for the third quarter of 2023. Provision in the fourth
quarter of 2023 was based on loan growth, qualitative economic
factors and individually analyzed loans.
Net charge-offs for the fourth quarter of 2023
were $382,000, or 0.08% of average loans on an annualized basis,
compared to net recoveries of $(23,000), or (0.01)% of average
loans on an annualized basis, for the third quarter of 2023, and
net charge-offs of $205,000, or 0.05% of average loans on an
annualized basis, for the fourth quarter of 2022.
The Company’s allowance for credit losses was
1.29% of total loans and 2071.20% of nonperforming loans at
December 31, 2023, compared with 1.25% of total loans and
2050.00% of nonperforming loans at September 30, 2023.
Allowance for credit losses on unfunded commitments was $1.2
million at December 31, 2023.
Deposits
|
Three Months Ended |
|
% Change December 31, 2023
vs. |
December 31,2023 |
|
September 30,2023 |
|
December 31,2022 |
|
September 30,2023 |
|
December 31,2022 |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
437,959 |
|
|
$ |
418,125 |
|
|
$ |
460,977 |
|
|
4.7 |
% |
|
(5.0) |
)% |
Interest-bearing deposits |
|
1,580,230 |
|
|
|
1,498,276 |
|
|
|
1,259,766 |
|
|
5.5 |
% |
|
25.4 |
% |
Total deposits |
$ |
2,018,189 |
|
|
$ |
1,916,401 |
|
|
$ |
1,720,743 |
|
|
5.3 |
% |
|
17.3 |
% |
|
|
|
|
|
|
|
|
|
|
Uninsured deposits |
$ |
615,651 |
|
|
$ |
568,323 |
|
|
$ |
600,977 |
|
|
8.3 |
% |
|
2.4 |
% |
Uninsured deposits to total
deposits |
|
30.51 |
% |
|
|
29.66 |
% |
|
|
34.93 |
% |
|
|
|
|
Noninterest deposits to total
deposits |
|
21.70 |
% |
|
|
21.82 |
% |
|
|
26.79 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits were $2.0 billion at
December 31, 2023, up from $1.9 billion at September 30,
2023 and $1.7 billion at December 31, 2022. The $101.8 million
increase in total deposits in the fourth quarter was primarily due
to an increase of $82.0 in interest-bearing deposits, which
includes a $62.5 million increase in brokered deposits, and an
increase of $19.8 million in noninterest-bearing deposits. Total
brokered deposits were $230.9 million at December 31,
2023.
Capital
|
December 31,2023 |
|
September 30,2023 |
|
December 31,2022 |
Company |
|
Bank |
|
Company |
|
Bank |
|
Company |
|
Bank |
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital ratio to average assets |
8.99 |
% |
|
12.01 |
% |
|
8.70 |
% |
|
11.71 |
% |
|
8.82 |
% |
|
12.17 |
% |
Risk-based capital
ratios: |
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 (“CET1”)
capital ratio |
9.18 |
% |
|
12.28 |
% |
|
9.32 |
% |
|
12.55 |
% |
|
8.86 |
% |
|
12.21 |
% |
Tier 1 capital ratio |
9.18 |
% |
|
12.28 |
% |
|
9.32 |
% |
|
12.55 |
% |
|
8.86 |
% |
|
12.21 |
% |
Total capital ratio |
14.26 |
% |
|
13.42 |
% |
|
14.60 |
% |
|
13.67 |
% |
|
14.34 |
% |
|
13.24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2023, total
stockholders’ equity was $215.0 million, up from $201.9 million at
September 30, 2023. The increase of $13.0 million was
substantially due to earnings growth, coupled with a decrease in
accumulated other comprehensive loss resulting from changes in the
value of the available for sale securities portfolio.
About Southern States Bancshares,
Inc.
Headquartered in Anniston, Alabama, Southern
States Bancshares, Inc. is a bank holding company that operates
primarily through its wholly-owned subsidiary, Southern States
Bank. The Bank is a full service community banking institution,
which offers an array of deposit, loan and other banking-related
products and services to businesses and individuals in its
communities. The Bank operates 13 branches in Alabama and Georgia
and two loan production offices in Atlanta.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the federal securities laws, which
reflect our current expectations and beliefs with respect to, among
other things, future events and our financial performance. These
forward-looking statements are not historical facts, and are based
on current expectations, estimates and projections about our
industry, management’s beliefs and certain assumptions made by
management, many of which, by their nature, are inherently
uncertain and beyond our control. This may be especially true given
recent events and trends in the banking industry and the
inflationary environment. Although we believe that the expectations
reflected in such forward-looking statements are reasonable as of
the dates made, we cannot give any assurance that such expectations
will prove correct and actual results may prove to be materially
different from the results expressed or implied by the
forward-looking statements. Important factors that could cause
actual results to differ materially from those in the
forward-looking statements are set forth in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2022 under the
section entitled “Cautionary Note Regarding Forward-Looking
Statements” and “Risk Factors”. Accordingly, we caution you that
any such forward-looking statements are not guarantees of future
performance and are subject to risks, assumptions and uncertainties
that are difficult to predict.
These statements are often, but not always, made
through the use of words or phrases such as “may,” “can,” “should,”
“could,” “to be,” “predict,” “potential,” “believe,” “will likely
result,” “expect,” “continue,” “will,” “likely,” “anticipate,”
“seek,” “estimate,” “intend,” “plan,” “target,” “project,” “would”
and “outlook,” or the negative version of those words or other
similar words or phrases of a future or forward-looking nature.
Forward-looking statements appear in a number of places in this
press release and may include statements about business strategy
and prospects for growth, operations, ability to pay dividends,
competition, regulation and general economic conditions.
Contact Information
Lynn Joyce |
|
|
|
Kevin Dobbs |
(205)
820-8065 |
|
|
|
(310)
622-8245 |
ljoyce@ssbank.bank |
|
|
|
ssbankir@finprofiles.com |
SELECT FINANCIAL DATA |
(Dollars in thousands, except share and per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
December 31,2023 |
|
September 30,2023 |
|
December 31,2022 |
|
December 31,2023 |
|
December 31,2022 |
|
|
|
|
|
|
|
|
|
Results of
Operations |
|
|
|
|
|
|
|
|
|
Interest income |
$ |
36,172 |
|
|
$ |
35,204 |
|
|
$ |
26,706 |
|
|
$ |
132,260 |
|
|
$ |
82,850 |
|
Interest expense |
|
15,768 |
|
|
|
14,473 |
|
|
|
5,822 |
|
|
|
52,148 |
|
|
|
11,512 |
|
Net interest income |
|
20,404 |
|
|
|
20,731 |
|
|
|
20,884 |
|
|
|
80,112 |
|
|
|
71,338 |
|
Provision for credit
losses |
|
2,579 |
|
|
|
773 |
|
|
|
1,938 |
|
|
|
6,090 |
|
|
|
5,605 |
|
Net interest income after
provision |
|
17,825 |
|
|
|
19,958 |
|
|
|
18,946 |
|
|
|
74,022 |
|
|
|
65,733 |
|
Noninterest income |
|
3,118 |
|
|
|
(2,894 |
) |
|
|
4,603 |
|
|
|
8,874 |
|
|
|
8,677 |
|
Noninterest expense |
|
9,717 |
|
|
|
8,569 |
|
|
|
10,436 |
|
|
|
41,876 |
|
|
|
39,614 |
|
Income tax expense |
|
2,330 |
|
|
|
1,866 |
|
|
|
2,521 |
|
|
|
9,068 |
|
|
|
7,725 |
|
Net income |
$ |
8,896 |
|
|
$ |
6,629 |
|
|
$ |
10,592 |
|
|
$ |
31,952 |
|
|
$ |
27,071 |
|
Core net income(1) |
$ |
7,289 |
|
|
$ |
9,563 |
|
|
$ |
8,081 |
|
|
$ |
31,190 |
|
|
$ |
24,975 |
|
|
|
|
|
|
|
|
|
|
|
Share and Per Share Data |
|
|
|
|
|
|
|
|
|
Shares issued and
outstanding |
|
8,841,349 |
|
|
|
8,834,168 |
|
|
|
8,706,920 |
|
|
|
8,841,349 |
|
|
|
8,706,920 |
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
8,864,734 |
|
|
|
8,846,018 |
|
|
|
8,707,026 |
|
|
|
8,809,590 |
|
|
|
8,774,860 |
|
Diluted |
|
9,021,358 |
|
|
|
9,040,687 |
|
|
|
8,932,585 |
|
|
|
9,038,004 |
|
|
|
8,949,669 |
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.00 |
|
|
$ |
0.75 |
|
|
$ |
1.22 |
|
|
$ |
3.63 |
|
|
$ |
3.08 |
|
Diluted |
|
0.99 |
|
|
|
0.73 |
|
|
|
1.18 |
|
|
|
3.53 |
|
|
|
3.02 |
|
Core - diluted(1) |
|
0.81 |
|
|
|
1.06 |
|
|
|
0.90 |
|
|
|
3.45 |
|
|
|
2.79 |
|
Book value per share |
|
24.31 |
|
|
|
22.86 |
|
|
|
20.87 |
|
|
|
24.31 |
|
|
|
20.87 |
|
Tangible book value per
share(1) |
|
22.30 |
|
|
|
20.84 |
|
|
|
18.79 |
|
|
|
22.30 |
|
|
|
18.79 |
|
Cash dividends per common
share |
|
0.09 |
|
|
|
0.09 |
|
|
|
0.09 |
|
|
|
0.36 |
|
|
|
0.36 |
|
|
|
|
|
|
|
|
|
|
|
Performance and Financial Ratios |
|
|
|
|
|
|
|
|
|
ROAA |
|
1.53 |
% |
|
|
1.15 |
% |
|
|
2.11 |
% |
|
|
1.44 |
% |
|
|
1.43 |
% |
ROAE |
|
17.02 |
% |
|
|
12.96 |
% |
|
|
23.77 |
% |
|
|
16.16 |
% |
|
|
15.55 |
% |
Core ROAA(1) |
|
1.26 |
% |
|
|
1.66 |
% |
|
|
1.61 |
% |
|
|
1.41 |
% |
|
|
1.32 |
% |
ROATCE(1) |
|
18.62 |
% |
|
|
14.21 |
% |
|
|
26.49 |
% |
|
|
17.78 |
% |
|
|
17.37 |
% |
Core ROATCE(1) |
|
15.26 |
% |
|
|
20.50 |
% |
|
|
20.21 |
% |
|
|
17.35 |
% |
|
|
16.02 |
% |
NIM |
|
3.69 |
% |
|
|
3.78 |
% |
|
|
4.38 |
% |
|
|
3.81 |
% |
|
|
3.99 |
% |
NIM - FTE(2) |
|
3.71 |
% |
|
|
3.79 |
% |
|
|
4.39 |
% |
|
|
3.82 |
% |
|
|
4.01 |
% |
Net interest spread |
|
2.73 |
% |
|
|
2.84 |
% |
|
|
3.84 |
% |
|
|
2.92 |
% |
|
|
3.68 |
% |
Yield on loans |
|
6.91 |
% |
|
|
6.86 |
% |
|
|
6.05 |
% |
|
|
6.70 |
% |
|
|
5.27 |
% |
Yield on interest-earning
assets |
|
6.54 |
% |
|
|
6.42 |
% |
|
|
5.60 |
% |
|
|
6.29 |
% |
|
|
4.64 |
% |
Cost of interest-bearing
liabilities |
|
3.81 |
% |
|
|
3.58 |
% |
|
|
1.76 |
% |
|
|
3.37 |
% |
|
|
0.96 |
% |
Cost of funds(2) |
|
3.03 |
% |
|
|
2.80 |
% |
|
|
1.29 |
% |
|
|
2.63 |
% |
|
|
0.68 |
% |
Cost of interest-bearing
deposits |
|
3.66 |
% |
|
|
3.43 |
% |
|
|
1.52 |
% |
|
|
3.19 |
% |
|
|
0.79 |
% |
Cost of total deposits |
|
2.86 |
% |
|
|
2.63 |
% |
|
|
1.09 |
% |
|
|
2.44 |
% |
|
|
0.55 |
% |
Noninterest deposits to total
deposits |
|
21.70 |
% |
|
|
21.82 |
% |
|
|
26.79 |
% |
|
|
21.70 |
% |
|
|
26.79 |
% |
Core deposits to total
deposits |
|
83.70 |
% |
|
|
86.58 |
% |
|
|
89.73 |
% |
|
|
83.70 |
% |
|
|
89.73 |
% |
Uninsured deposits to total
deposits |
|
30.51 |
% |
|
|
29.66 |
% |
|
|
34.93 |
% |
|
|
30.51 |
% |
|
|
34.93 |
% |
Total loans to total
deposits |
|
93.38 |
% |
|
|
92.58 |
% |
|
|
92.24 |
% |
|
|
93.38 |
% |
|
|
92.24 |
% |
Efficiency ratio |
|
41.48 |
% |
|
|
48.01 |
% |
|
|
40.81 |
% |
|
|
47.35 |
% |
|
|
49.12 |
% |
Core efficiency ratio(1) |
|
45.78 |
% |
|
|
42.79 |
% |
|
|
45.98 |
% |
|
|
46.74 |
% |
|
|
50.97 |
% |
|
|
|
|
|
|
|
|
|
|
(1) See "Reconciliation of Non-GAAP Financial
Measures" below for reconciliation of non-GAAP financial measures
to their most closely comparable GAAP financial measures.(2)
Includes total interest-bearing liabilities and noninterest
deposits.
|
SELECT FINANCIAL DATA |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
December 31,2023 |
|
September 30,2023 |
|
December 31,2022 |
|
December 31,2023 |
|
December 31,2022 |
|
|
|
|
|
|
|
|
|
Financial Condition
(ending) |
|
|
|
|
|
|
|
|
|
Total loans |
$ |
1,884,508 |
|
|
$ |
1,774,148 |
|
|
$ |
1,587,164 |
|
|
$ |
1,884,508 |
|
|
$ |
1,587,164 |
|
Total securities |
|
198,632 |
|
|
|
189,496 |
|
|
|
175,196 |
|
|
|
198,632 |
|
|
|
175,196 |
|
Total assets |
|
2,446,339 |
|
|
|
2,296,527 |
|
|
|
2,045,204 |
|
|
|
2,446,339 |
|
|
|
2,045,204 |
|
Total noninterest bearing
deposits |
|
437,959 |
|
|
|
418,125 |
|
|
|
460,977 |
|
|
|
437,959 |
|
|
|
460,977 |
|
Total core deposits(1) |
|
1,689,266 |
|
|
|
1,659,291 |
|
|
|
1,543,981 |
|
|
|
1,689,266 |
|
|
|
1,543,981 |
|
Total deposits |
|
2,018,189 |
|
|
|
1,916,401 |
|
|
|
1,720,743 |
|
|
|
2,018,189 |
|
|
|
1,720,743 |
|
Total borrowings |
|
183,673 |
|
|
|
146,573 |
|
|
|
117,295 |
|
|
|
183,673 |
|
|
|
117,295 |
|
Total liabilities |
|
2,231,375 |
|
|
|
2,094,603 |
|
|
|
1,863,485 |
|
|
|
2,231,375 |
|
|
|
1,863,485 |
|
Total shareholders’
equity |
|
214,964 |
|
|
|
201,924 |
|
|
|
181,719 |
|
|
|
214,964 |
|
|
|
181,719 |
|
|
|
|
|
|
|
|
|
|
|
Financial Condition (average) |
|
|
|
|
|
|
|
|
|
Total loans |
$ |
1,814,484 |
|
|
$ |
1,740,582 |
|
|
$ |
1,563,255 |
|
|
$ |
1,711,006 |
|
|
$ |
1,421,376 |
|
Total securities |
|
209,074 |
|
|
|
201,830 |
|
|
|
188,765 |
|
|
|
200,047 |
|
|
|
178,755 |
|
Total other interest-earning
assets |
|
171,823 |
|
|
|
232,691 |
|
|
|
141,049 |
|
|
|
192,433 |
|
|
|
187,263 |
|
Total interest-bearing
assets |
|
2,195,381 |
|
|
|
2,175,103 |
|
|
|
1,893,069 |
|
|
|
2,103,486 |
|
|
|
1,787,394 |
|
Total assets |
|
2,303,398 |
|
|
|
2,282,217 |
|
|
|
1,994,087 |
|
|
|
2,211,739 |
|
|
|
1,893,046 |
|
Total noninterest-bearing
deposits |
|
420,019 |
|
|
|
448,616 |
|
|
|
477,301 |
|
|
|
436,571 |
|
|
|
496,486 |
|
Total interest-bearing
deposits |
|
1,502,348 |
|
|
|
1,472,024 |
|
|
|
1,216,492 |
|
|
|
1,422,453 |
|
|
|
1,127,637 |
|
Total deposits |
|
1,922,367 |
|
|
|
1,920,640 |
|
|
|
1,693,793 |
|
|
|
1,859,024 |
|
|
|
1,624,123 |
|
Total borrowings |
|
140,790 |
|
|
|
129,882 |
|
|
|
99,111 |
|
|
|
126,853 |
|
|
|
76,379 |
|
Total interest-bearing
liabilities |
|
1,643,138 |
|
|
|
1,601,906 |
|
|
|
1,315,603 |
|
|
|
1,549,306 |
|
|
|
1,204,016 |
|
Total shareholders’
equity |
|
207,324 |
|
|
|
202,955 |
|
|
|
176,769 |
|
|
|
197,680 |
|
|
|
174,107 |
|
|
|
|
|
|
|
|
|
|
|
Asset Quality |
|
|
|
|
|
|
|
|
|
Nonperforming loans |
$ |
1,177 |
|
|
$ |
1,082 |
|
|
$ |
2,245 |
|
|
$ |
1,177 |
|
|
$ |
2,245 |
|
Other real estate owned
(“OREO”) |
$ |
33 |
|
|
$ |
2,903 |
|
|
$ |
2,930 |
|
|
$ |
33 |
|
|
$ |
2,930 |
|
Nonperforming assets
(“NPA”) |
$ |
1,210 |
|
|
$ |
3,985 |
|
|
$ |
5,175 |
|
|
$ |
1,210 |
|
|
$ |
5,175 |
|
Net charge-offs (recovery) to
average loans(2) |
|
0.08 |
% |
|
(0.01) % |
|
|
0.05 |
% |
|
|
0.03 |
% |
|
|
0.02 |
% |
Provision for credit losses to
average loans(2) |
|
0.56 |
% |
|
|
0.18 |
% |
|
|
0.49 |
% |
|
|
0.36 |
% |
|
|
0.39 |
% |
ACL to loans |
|
1.29 |
% |
|
|
1.25 |
% |
|
|
1.27 |
% |
|
|
1.29 |
% |
|
|
1.27 |
% |
ACL to gross loans |
|
1.29 |
% |
|
|
1.25 |
% |
|
|
1.27 |
% |
|
|
1.29 |
% |
|
|
1.27 |
% |
ACL to NPL |
|
2071.20 |
% |
|
|
2050.00 |
% |
|
|
897.82 |
% |
|
|
2071.20 |
% |
|
|
897.82 |
% |
NPL to loans |
|
0.06 |
% |
|
|
0.06 |
% |
|
|
0.14 |
% |
|
|
0.06 |
% |
|
|
0.14 |
% |
NPL to gross loans |
|
0.06 |
% |
|
|
0.06 |
% |
|
|
0.14 |
% |
|
|
0.06 |
% |
|
|
0.14 |
% |
NPA to gross loans and
OREO |
|
0.06 |
% |
|
|
0.22 |
% |
|
|
0.32 |
% |
|
|
0.06 |
% |
|
|
0.32 |
% |
NPA to total assets |
|
0.05 |
% |
|
|
0.17 |
% |
|
|
0.25 |
% |
|
|
0.05 |
% |
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
Regulatory and Other Capital Ratios |
|
|
|
|
|
|
|
|
|
Total shareholders’ equity to
total assets |
|
8.79 |
% |
|
|
8.79 |
% |
|
|
8.89 |
% |
|
|
8.79 |
% |
|
|
8.89 |
% |
Tangible common equity to
tangible assets(3) |
|
8.12 |
% |
|
|
8.08 |
% |
|
|
8.07 |
% |
|
|
8.12 |
% |
|
|
8.07 |
% |
Tier 1 capital ratio to
average assets |
|
8.99 |
% |
|
|
8.70 |
% |
|
|
8.82 |
% |
|
|
8.99 |
% |
|
|
8.82 |
% |
Risk-based capital
ratios: |
|
|
|
|
|
|
|
|
|
CET1 capital ratio |
|
9.18 |
% |
|
|
9.32 |
% |
|
|
8.86 |
% |
|
|
9.18 |
% |
|
|
8.86 |
% |
Tier 1 capital ratio |
|
9.18 |
% |
|
|
9.32 |
% |
|
|
8.86 |
% |
|
|
9.18 |
% |
|
|
8.86 |
% |
Total capital ratio |
|
14.26 |
% |
|
|
14.60 |
% |
|
|
14.34 |
% |
|
|
14.26 |
% |
|
|
14.34 |
% |
|
|
|
|
|
|
|
|
|
|
(1) We define core deposits as total deposits
excluding brokered deposits and time deposits greater than
$250,000.(2) Ratio is annualized.(3) See "Reconciliation of
Non-GAAP Financial Measures" below for reconciliation of non-GAAP
financial measures to their most closely comparable GAAP financial
measures.
|
CONSOLIDATED STATEMENTS OF FINANCIAL
CONDITION |
(Dollars in thousands) |
|
|
|
|
|
|
|
December 31,2023 |
|
September 30,2023 |
|
December 31,2022 |
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
|
|
|
|
Assets |
|
|
|
|
|
Cash and due from banks |
$ |
19,710 |
|
|
$ |
31,047 |
|
|
$ |
15,260 |
|
Interest-bearing deposits in
banks |
|
134,846 |
|
|
|
103,646 |
|
|
|
90,198 |
|
Federal funds sold |
|
96,095 |
|
|
|
81,487 |
|
|
|
63,041 |
|
Total cash and cash equivalents |
|
250,651 |
|
|
|
216,180 |
|
|
|
168,499 |
|
|
|
|
|
|
|
Securities available for sale,
at fair value |
|
179,000 |
|
|
|
169,859 |
|
|
|
155,544 |
|
Securities held to maturity,
at amortized cost |
|
19,632 |
|
|
|
19,637 |
|
|
|
19,652 |
|
Other equity securities, at
fair value |
|
3,649 |
|
|
|
3,654 |
|
|
|
4,444 |
|
Restricted equity securities,
at cost |
|
5,684 |
|
|
|
4,971 |
|
|
|
3,134 |
|
Loans held for sale |
|
450 |
|
|
|
1,799 |
|
|
|
1,047 |
|
|
|
|
|
|
|
Loans, net of unearned
income |
|
1,884,508 |
|
|
|
1,774,148 |
|
|
|
1,587,164 |
|
Less allowance for credit
losses |
|
24,378 |
|
|
|
22,181 |
|
|
|
20,156 |
|
Loans, net |
|
1,860,130 |
|
|
|
1,751,967 |
|
|
|
1,567,008 |
|
|
|
|
|
|
|
Premises and equipment,
net |
|
26,426 |
|
|
|
26,694 |
|
|
|
27,345 |
|
Accrued interest
receivable |
|
8,711 |
|
|
|
8,321 |
|
|
|
6,963 |
|
Bank owned life insurance |
|
29,884 |
|
|
|
29,697 |
|
|
|
29,186 |
|
Annuities |
|
15,036 |
|
|
|
15,266 |
|
|
|
15,478 |
|
Foreclosed assets |
|
33 |
|
|
|
2,903 |
|
|
|
2,930 |
|
Goodwill |
|
16,862 |
|
|
|
16,862 |
|
|
|
16,862 |
|
Core deposit intangible |
|
899 |
|
|
|
981 |
|
|
|
1,226 |
|
Other assets |
|
29,292 |
|
|
|
27,736 |
|
|
|
25,886 |
|
|
|
|
|
|
|
Total assets |
$ |
2,446,339 |
|
|
$ |
2,296,527 |
|
|
$ |
2,045,204 |
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
Liabilities: |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Noninterest-bearing |
$ |
437,959 |
|
|
$ |
418,125 |
|
|
$ |
460,977 |
|
Interest-bearing |
|
1,580,230 |
|
|
|
1,498,276 |
|
|
|
1,259,766 |
|
Total deposits |
|
2,018,189 |
|
|
|
1,916,401 |
|
|
|
1,720,743 |
|
|
|
|
|
|
|
Other borrowings |
|
26,994 |
|
|
|
4,991 |
|
|
|
(19 |
) |
FHLB advances |
|
70,000 |
|
|
|
55,000 |
|
|
|
31,000 |
|
Subordinated notes |
|
86,679 |
|
|
|
86,582 |
|
|
|
86,314 |
|
Accrued interest payable |
|
1,519 |
|
|
|
1,280 |
|
|
|
584 |
|
Other liabilities |
|
27,994 |
|
|
|
30,349 |
|
|
|
24,863 |
|
|
|
|
|
|
|
Total liabilities |
|
2,231,375 |
|
|
|
2,094,603 |
|
|
|
1,863,485 |
|
Stockholders' equity: |
|
|
|
|
|
Common stock |
|
44,479 |
|
|
|
44,307 |
|
|
|
43,714 |
|
Capital surplus |
|
78,361 |
|
|
|
77,671 |
|
|
|
76,785 |
|
Retained earnings |
|
102,523 |
|
|
|
94,429 |
|
|
|
73,764 |
|
Accumulated other comprehensive loss |
|
(8,379 |
) |
|
|
(13,126 |
) |
|
|
(11,048 |
) |
Unvested restricted stock |
|
(466 |
) |
|
|
(580 |
) |
|
|
(477 |
) |
Vested restricted stock units |
|
(1,554 |
) |
|
|
(777 |
) |
|
|
(1,019 |
) |
|
|
|
|
|
|
Total stockholders' equity |
|
214,964 |
|
|
|
201,924 |
|
|
|
181,719 |
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
2,446,339 |
|
|
$ |
2,296,527 |
|
|
$ |
2,045,204 |
|
|
CONSOLIDATED STATEMENTS OF INCOME |
(Dollars in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
December 31,2023 |
|
September 30,2023 |
|
December 31,2022 |
|
December 31,2023 |
|
December 31,2022 |
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
Interest
income: |
|
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
31,613 |
|
$ |
30,084 |
|
|
$ |
23,853 |
|
|
$ |
114,662 |
|
$ |
74,936 |
|
Taxable securities |
|
1,986 |
|
|
1,796 |
|
|
|
1,206 |
|
|
|
6,806 |
|
|
3,622 |
|
Nontaxable securities |
|
230 |
|
|
227 |
|
|
|
322 |
|
|
|
977 |
|
|
1,253 |
|
Other interest and dividends |
|
2,343 |
|
|
3,097 |
|
|
|
1,325 |
|
|
|
9,815 |
|
|
3,039 |
|
Total interest income |
|
36,172 |
|
|
35,204 |
|
|
|
26,706 |
|
|
|
132,260 |
|
|
82,850 |
|
|
|
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
Deposits |
|
13,869 |
|
|
12,732 |
|
|
|
4,655 |
|
|
|
45,368 |
|
|
8,906 |
|
Other borrowings |
|
1,899 |
|
|
1,741 |
|
|
|
1,167 |
|
|
|
6,780 |
|
|
2,606 |
|
Total interest expense |
|
15,768 |
|
|
14,473 |
|
|
|
5,822 |
|
|
|
52,148 |
|
|
11,512 |
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
20,404 |
|
|
20,731 |
|
|
|
20,884 |
|
|
|
80,112 |
|
|
71,338 |
|
Provision for credit
losses |
|
2,579 |
|
|
773 |
|
|
|
1,938 |
|
|
|
6,090 |
|
|
5,605 |
|
Net interest income after provision for credit
losses |
|
17,825 |
|
|
19,958 |
|
|
|
18,946 |
|
|
|
74,022 |
|
|
65,733 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
441 |
|
|
442 |
|
|
|
431 |
|
|
|
1,790 |
|
|
1,863 |
|
Swap fees |
|
70 |
|
|
453 |
|
|
|
2 |
|
|
|
691 |
|
|
49 |
|
SBA/USDA fees |
|
70 |
|
|
74 |
|
|
|
70 |
|
|
|
344 |
|
|
646 |
|
Mortgage origination fees |
|
87 |
|
|
158 |
|
|
|
98 |
|
|
|
533 |
|
|
815 |
|
Net gain (loss) on securities |
|
98 |
|
|
(12 |
) |
|
|
(86 |
) |
|
|
555 |
|
|
(632 |
) |
Employee retention credit and related revenue |
|
— |
|
|
(5,100 |
) |
|
|
— |
|
|
|
— |
|
|
— |
|
Other operating income |
|
2,352 |
|
|
1,091 |
|
|
|
4,088 |
|
|
|
4,961 |
|
|
5,936 |
|
Total noninterest income |
|
3,118 |
|
|
(2,894 |
) |
|
|
4,603 |
|
|
|
8,874 |
|
|
8,677 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expenses: |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
5,739 |
|
|
5,752 |
|
|
|
6,738 |
|
|
|
25,665 |
|
|
24,597 |
|
Equipment and occupancy expenses |
|
681 |
|
|
718 |
|
|
|
730 |
|
|
|
2,776 |
|
|
2,918 |
|
Data processing fees |
|
639 |
|
|
650 |
|
|
|
711 |
|
|
|
2,528 |
|
|
2,444 |
|
Regulatory assessments |
|
355 |
|
|
322 |
|
|
|
165 |
|
|
|
1,198 |
|
|
925 |
|
Professional fees related to ERC |
|
— |
|
|
(1,243 |
) |
|
|
— |
|
|
|
— |
|
|
— |
|
Other operating expenses |
|
2,303 |
|
|
2,370 |
|
|
|
2,092 |
|
|
|
9,709 |
|
|
8,730 |
|
Total noninterest expenses |
|
9,717 |
|
|
8,569 |
|
|
|
10,436 |
|
|
|
41,876 |
|
|
39,614 |
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
11,226 |
|
|
8,495 |
|
|
|
13,113 |
|
|
|
41,020 |
|
|
34,796 |
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
2,330 |
|
|
1,866 |
|
|
|
2,521 |
|
|
|
9,068 |
|
|
7,725 |
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
8,896 |
|
$ |
6,629 |
|
|
$ |
10,592 |
|
|
$ |
31,952 |
|
$ |
27,071 |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share |
$ |
1.00 |
|
$ |
0.75 |
|
|
$ |
1.22 |
|
|
$ |
3.63 |
|
$ |
3.08 |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share |
$ |
0.99 |
|
$ |
0.73 |
|
|
$ |
1.18 |
|
|
$ |
3.53 |
|
$ |
3.02 |
|
|
AVERAGE BALANCE SHEET AND NET INTEREST MARGIN |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
December 31,2023 |
|
September 30,2023 |
|
December 31,2022 |
AverageBalance |
|
Interest |
|
Yield/Rate |
|
AverageBalance |
|
Interest |
|
Yield/Rate |
|
AverageBalance |
|
Interest |
|
Yield/Rate |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned income(1) |
$ |
1,814,484 |
|
|
$ |
31,613 |
|
6.91 |
% |
|
$ |
1,740,582 |
|
|
$ |
30,084 |
|
6.86 |
% |
|
$ |
1,563,255 |
|
|
$ |
23,853 |
|
6.05 |
% |
Taxable securities |
|
163,537 |
|
|
|
1,986 |
|
4.82 |
% |
|
|
156,364 |
|
|
|
1,796 |
|
4.56 |
% |
|
|
132,222 |
|
|
|
1,206 |
|
3.62 |
% |
Nontaxable securities |
|
45,537 |
|
|
|
230 |
|
2.00 |
% |
|
|
45,466 |
|
|
|
227 |
|
1.98 |
% |
|
|
56,543 |
|
|
|
322 |
|
2.26 |
% |
Other interest-earnings
assets |
|
171,823 |
|
|
|
2,343 |
|
5.41 |
% |
|
|
232,691 |
|
|
|
3,097 |
|
5.28 |
% |
|
|
141,049 |
|
|
|
1,325 |
|
3.73 |
% |
Total interest-earning assets |
$ |
2,195,381 |
|
|
$ |
36,172 |
|
6.54 |
% |
|
$ |
2,175,103 |
|
|
$ |
35,204 |
|
6.42 |
% |
|
$ |
1,893,069 |
|
|
$ |
26,706 |
|
5.60 |
% |
Allowance for credit losses |
|
(22,666 |
) |
|
|
|
|
|
|
(21,606 |
) |
|
|
|
|
|
|
(19,374 |
) |
|
|
|
|
Noninterest-earning assets |
|
130,683 |
|
|
|
|
|
|
|
128,720 |
|
|
|
|
|
|
|
120,392 |
|
|
|
|
|
Total Assets |
$ |
2,303,398 |
|
|
|
|
|
|
$ |
2,282,217 |
|
|
|
|
|
|
$ |
1,994,087 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction accounts |
|
86,163 |
|
|
|
23 |
|
0.11 |
% |
|
|
88,668 |
|
|
|
20 |
|
0.09 |
% |
|
|
98,978 |
|
|
|
22 |
|
0.09 |
% |
Savings and money market accounts |
|
885,548 |
|
|
|
8,445 |
|
3.78 |
% |
|
|
867,066 |
|
|
|
7,767 |
|
3.55 |
% |
|
|
794,692 |
|
|
|
3,126 |
|
1.56 |
% |
Time deposits |
|
530,637 |
|
|
|
5,401 |
|
4.04 |
% |
|
|
516,290 |
|
|
|
4,945 |
|
3.80 |
% |
|
|
322,822 |
|
|
|
1,507 |
|
1.85 |
% |
FHLB advances |
|
52,076 |
|
|
|
645 |
|
4.92 |
% |
|
|
43,261 |
|
|
|
514 |
|
4.72 |
% |
|
|
22,739 |
|
|
|
147 |
|
2.56 |
% |
Other borrowings |
|
88,714 |
|
|
|
1,254 |
|
5.61 |
% |
|
|
86,621 |
|
|
|
1,227 |
|
5.62 |
% |
|
|
76,372 |
|
|
|
1,020 |
|
5.30 |
% |
Total interest-bearing liabilities |
$ |
1,643,138 |
|
|
$ |
15,768 |
|
3.81 |
% |
|
$ |
1,601,906 |
|
|
$ |
14,473 |
|
3.58 |
% |
|
$ |
1,315,603 |
|
|
$ |
5,822 |
|
1.76 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
420,019 |
|
|
|
|
|
|
$ |
448,616 |
|
|
|
|
|
|
$ |
477,301 |
|
|
|
|
|
Other liabilities |
|
32,917 |
|
|
|
|
|
|
|
28,740 |
|
|
|
|
|
|
|
24,414 |
|
|
|
|
|
Total noninterest-bearing liabilities |
|
452,936 |
|
|
|
|
|
|
|
477,356 |
|
|
|
|
|
|
|
501,715 |
|
|
|
|
|
Stockholders’ Equity |
|
207,324 |
|
|
|
|
|
|
|
202,955 |
|
|
|
|
|
|
|
176,769 |
|
|
|
|
|
Total Liabilities and Stockholders’ Equity |
$ |
2,303,398 |
|
|
|
|
|
|
$ |
2,282,217 |
|
|
|
|
|
|
$ |
1,994,087 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$ |
20,404 |
|
|
|
|
|
$ |
20,731 |
|
|
|
|
|
$ |
20,884 |
|
|
Net interest spread(2) |
|
|
|
|
2.73 |
% |
|
|
|
|
|
2.84 |
% |
|
|
|
|
|
3.84 |
% |
Net interest margin(3) |
|
|
|
|
3.69 |
% |
|
|
|
|
|
3.78 |
% |
|
|
|
|
|
4.38 |
% |
Net interest margin -
FTE(4)(5) |
|
|
|
|
3.71 |
% |
|
|
|
|
|
3.79 |
% |
|
|
|
|
|
4.39 |
% |
Cost of funds(6) |
|
|
|
|
3.03 |
% |
|
|
|
|
|
2.80 |
% |
|
|
|
|
|
1.29 |
% |
Cost of interest-bearing
deposits |
|
|
|
|
3.66 |
% |
|
|
|
|
|
3.43 |
% |
|
|
|
|
|
1.52 |
% |
Cost of total deposits |
|
|
|
|
2.86 |
% |
|
|
|
|
|
2.63 |
% |
|
|
|
|
|
1.09 |
% |
(1) Includes nonaccrual loans.(2) Net interest
spread is the difference between interest rates earned on interest
earning assets and interest rates paid on interest-bearing
liabilities.(3) Net interest margin is a ratio of net interest
income to average interest earning assets for the same period.(4)
Net interest margin - FTE is a ratio of fully-taxable equivalent
net interest income to average interest earning assets for the same
period. It assumes a 24.0% tax rate.(5) Refer to “Reconciliation of
Non-GAAP Financial Measures”.(6) Includes total interest-bearing
liabilities and noninterest deposits.
|
AVERAGE BALANCE SHEET AND NET INTEREST MARGIN |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
December 31,2023 |
|
December 31,2022 |
AverageBalance |
|
Interest |
|
Yield/Rate |
|
AverageBalance |
|
Interest |
|
Yield/Rate |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned income(1) |
$ |
1,711,006 |
|
|
$ |
114,662 |
|
6.70 |
% |
|
$ |
1,421,376 |
|
|
$ |
74,936 |
|
5.27 |
% |
Taxable securities |
|
152,707 |
|
|
|
6,806 |
|
4.46 |
% |
|
|
122,500 |
|
|
|
3,622 |
|
2.96 |
% |
Nontaxable securities |
|
47,340 |
|
|
|
977 |
|
2.06 |
% |
|
|
56,255 |
|
|
|
1,253 |
|
2.23 |
% |
Other interest-earnings
assets |
|
192,433 |
|
|
|
9,815 |
|
5.10 |
% |
|
|
187,263 |
|
|
|
3,039 |
|
1.62 |
% |
Total interest-earning assets |
$ |
2,103,486 |
|
|
$ |
132,260 |
|
6.29 |
% |
|
$ |
1,787,394 |
|
|
$ |
82,850 |
|
4.64 |
% |
Allowance for credit losses |
|
(21,233 |
) |
|
|
|
|
|
|
(16,883 |
) |
|
|
|
|
Noninterest-earning assets |
|
129,486 |
|
|
|
|
|
|
|
122,535 |
|
|
|
|
|
Total Assets |
$ |
2,211,739 |
|
|
|
|
|
|
$ |
1,893,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction accounts |
|
90,231 |
|
|
|
82 |
|
0.09 |
% |
|
|
109,786 |
|
|
|
100 |
|
0.09 |
% |
Savings and money market accounts |
|
851,351 |
|
|
|
28,124 |
|
3.30 |
% |
|
|
754,830 |
|
|
|
5,988 |
|
0.79 |
% |
Time deposits |
|
480,871 |
|
|
|
17,162 |
|
3.57 |
% |
|
|
263,021 |
|
|
|
2,818 |
|
1.07 |
% |
FHLB advances |
|
39,830 |
|
|
|
1,848 |
|
4.64 |
% |
|
|
25,264 |
|
|
|
291 |
|
1.15 |
% |
Other borrowings |
|
87,023 |
|
|
|
4,932 |
|
5.67 |
% |
|
|
51,115 |
|
|
|
2,315 |
|
4.53 |
% |
Total interest-bearing liabilities |
$ |
1,549,306 |
|
|
$ |
52,148 |
|
3.37 |
% |
|
$ |
1,204,016 |
|
|
$ |
11,512 |
|
0.96 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
436,571 |
|
|
|
|
|
|
$ |
496,486 |
|
|
|
|
|
Other liabilities |
|
28,182 |
|
|
|
|
|
|
|
18,437 |
|
|
|
|
|
Total noninterest-bearing liabilities |
$ |
464,753 |
|
|
|
|
|
|
$ |
514,923 |
|
|
|
|
|
Stockholders’ Equity |
|
197,680 |
|
|
|
|
|
|
|
174,107 |
|
|
|
|
|
Total Liabilities and Stockholders’ Equity |
$ |
2,211,739 |
|
|
|
|
|
|
$ |
1,893,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$ |
80,112 |
|
|
|
|
|
$ |
71,338 |
|
|
Net interest spread(2) |
|
|
|
|
2.92 |
% |
|
|
|
|
|
3.68 |
% |
Net interest margin(3) |
|
|
|
|
3.81 |
% |
|
|
|
|
|
3.99 |
% |
Net interest margin -
FTE(4)(5) |
|
|
|
|
3.82 |
% |
|
|
|
|
|
4.01 |
% |
Cost of funds(6) |
|
|
|
|
2.63 |
% |
|
|
|
|
|
0.68 |
% |
Cost of interest-bearing
deposits |
|
|
|
|
3.19 |
% |
|
|
|
|
|
0.79 |
% |
Cost of total deposits |
|
|
|
|
2.44 |
% |
|
|
|
|
|
0.55 |
% |
(1) Includes nonaccrual loans.(2) Net interest
spread is the difference between interest rates earned on interest
earning assets and interest rates paid on interest-bearing
liabilities.(3) Net interest margin is a ratio of net interest
income to average interest earning assets for the same period.(4)
Net interest margin - FTE is a ratio of fully-taxable equivalent
net interest income to average interest earning assets for the same
period. It assumes a 24.0% tax rate.(5) Refer to “Reconciliation of
Non-GAAP Financial Measures”.(6) Includes total interest-bearing
liabilities and noninterest deposits.
|
LOAN COMPOSITION |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,2023 |
|
September 30,2023 |
|
December 31,2022 |
Amount |
|
% of gross |
|
Amount |
|
% of gross |
|
Amount |
|
% of gross |
|
|
|
|
|
|
|
|
|
|
|
Real estate mortgages: |
|
|
|
|
|
|
|
|
|
|
|
Construction and development |
$ |
242,960 |
|
|
12.9 |
% |
|
$ |
229,188 |
|
|
12.9 |
% |
|
$ |
255,736 |
|
|
16.1 |
% |
Residential |
|
224,603 |
|
|
11.9 |
% |
|
|
224,499 |
|
|
12.6 |
% |
|
|
167,891 |
|
|
10.5 |
% |
Commercial |
|
1,144,867 |
|
|
60.5 |
% |
|
|
1,049,545 |
|
|
59.0 |
% |
|
|
904,872 |
|
|
56.8 |
% |
Commercial and industrial |
|
269,961 |
|
|
14.3 |
% |
|
|
268,283 |
|
|
15.0 |
% |
|
|
256,553 |
|
|
16.1 |
% |
Consumer and other |
|
8,286 |
|
|
0.4 |
% |
|
|
8,331 |
|
|
0.5 |
% |
|
|
7,655 |
|
|
0.5 |
% |
Gross loans |
|
1,890,677 |
|
|
100.0 |
% |
|
|
1,779,846 |
|
|
100.0 |
% |
|
|
1,592,707 |
|
|
100.0 |
% |
Unearned income |
|
(6,169 |
) |
|
|
|
|
(5,698 |
) |
|
|
|
|
(5,543 |
) |
|
|
Loans, net of unearned income |
|
1,884,508 |
|
|
|
|
|
1,774,148 |
|
|
|
|
|
1,587,164 |
|
|
|
Allowance for credit
losses |
|
(24,378 |
) |
|
|
|
|
(22,181 |
) |
|
|
|
|
(20,156 |
) |
|
|
Loans, net |
$ |
1,860,130 |
|
|
|
|
$ |
1,751,967 |
|
|
|
|
$ |
1,567,008 |
|
|
|
DEPOSIT COMPOSITION |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,2023 |
|
September 30,2023 |
|
December 31,2022 |
Amount |
|
% of total |
|
Amount |
|
% of total |
|
Amount |
|
% of total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing transaction |
$ |
437,959 |
|
21.7 |
% |
|
$ |
418,125 |
|
21.8 |
% |
|
$ |
460,977 |
|
26.8 |
% |
Interest-bearing
transaction |
|
946,347 |
|
46.9 |
% |
|
|
934,383 |
|
48.8 |
% |
|
|
837,127 |
|
48.6 |
% |
Savings |
|
35,412 |
|
1.7 |
% |
|
|
38,518 |
|
2.0 |
% |
|
|
49,235 |
|
2.9 |
% |
Time deposits, $250,000 and
under |
|
500,406 |
|
24.8 |
% |
|
|
436,613 |
|
22.8 |
% |
|
|
307,145 |
|
17.8 |
% |
Time deposits, over
$250,000 |
|
98,065 |
|
4.9 |
% |
|
|
88,762 |
|
4.6 |
% |
|
|
66,259 |
|
3.9 |
% |
Total deposits |
$ |
2,018,189 |
|
100.0 |
% |
|
$ |
1,916,401 |
|
100.0 |
% |
|
$ |
1,720,743 |
|
100.0 |
% |
|
Nonperfoming Assets |
(Dollars in thousands) |
|
|
|
|
|
|
|
December 31,2023 |
|
September 30,2023 |
|
December 31,2022 |
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
$ |
1,017 |
|
|
$ |
1,082 |
|
|
$ |
2,245 |
|
Past due loans 90 days or more
and still accruing interest |
|
160 |
|
|
|
— |
|
|
|
— |
|
Total nonperforming loans |
|
1,177 |
|
|
|
1,082 |
|
|
|
2,245 |
|
OREO |
|
33 |
|
|
|
2,903 |
|
|
|
2,930 |
|
Total nonperforming assets |
$ |
1,210 |
|
|
$ |
3,985 |
|
|
$ |
5,175 |
|
|
|
|
|
|
|
Troubled debt restructured
loans – nonaccrual(1) |
|
907 |
|
|
|
970 |
|
|
|
832 |
|
Troubled debt restructured
loans – accruing |
|
1,095 |
|
|
|
1,052 |
|
|
|
1,292 |
|
Total troubled debt restructured loans |
$ |
2,002 |
|
|
$ |
2,022 |
|
|
$ |
2,124 |
|
|
|
|
|
|
|
Allowance for credit
losses |
$ |
24,378 |
|
|
$ |
22,181 |
|
|
$ |
20,156 |
|
Loans, net of unearned income
at the end of the period |
$ |
1,884,508 |
|
|
$ |
1,774,148 |
|
|
$ |
1,587,164 |
|
Gross loans outstanding at the
end of period |
$ |
1,890,677 |
|
|
$ |
1,779,846 |
|
|
$ |
1,592,707 |
|
Total assets |
$ |
2,446,339 |
|
|
$ |
2,296,527 |
|
|
$ |
2,045,204 |
|
Allowance for credit losses to
nonperforming loans |
|
2071.20 |
% |
|
|
2050.00 |
% |
|
|
897.82 |
% |
Nonperforming loans to loans,
net of unearned income |
|
0.06 |
% |
|
|
0.06 |
% |
|
|
0.14 |
% |
Nonperforming loans to gross
loans |
|
0.06 |
% |
|
|
0.06 |
% |
|
|
0.14 |
% |
Nonperforming assets to gross
loans and OREO |
|
0.06 |
% |
|
|
0.22 |
% |
|
|
0.32 |
% |
Nonperforming assets to total
assets |
|
0.05 |
% |
|
|
0.17 |
% |
|
|
0.25 |
% |
|
|
|
|
|
|
Nonaccrual loans by
category: |
|
|
|
|
|
Real estate mortgages: |
|
|
|
|
|
Construction & Development |
$ |
— |
|
|
$ |
— |
|
|
$ |
67 |
|
Residential Mortgages |
|
252 |
|
|
|
289 |
|
|
|
565 |
|
Commercial Real Estate Mortgages |
|
765 |
|
|
|
785 |
|
|
|
1,278 |
|
Commercial &
Industrial |
|
— |
|
|
|
8 |
|
|
|
312 |
|
Consumer and other |
|
— |
|
|
|
— |
|
|
|
23 |
|
Total |
$ |
1,017 |
|
|
$ |
1,082 |
|
|
$ |
2,245 |
|
(1) Troubled debt restructured loans are
excluded from nonperforming loans unless they otherwise meet the
definition of nonaccrual loans or are more than 90 days past
due.
|
Allowance for Credit Losses |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
December 31,2023 |
|
September 30,2023 |
|
December 31,2022 |
|
December 31,2023 |
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
Average loans, net of unearned income |
$ |
1,814,484 |
|
|
$ |
1,740,582 |
|
|
$ |
1,563,255 |
|
|
$ |
1,711,006 |
|
|
$ |
1,421,376 |
|
Loans, net of unearned
income |
|
1,884,508 |
|
|
|
1,774,148 |
|
|
|
1,587,164 |
|
|
|
1,884,508 |
|
|
|
1,587,164 |
|
Gross loans |
|
1,890,677 |
|
|
|
1,779,846 |
|
|
|
1,592,707 |
|
|
|
1,890,677 |
|
|
|
1,592,707 |
|
Allowance for credit losses at
beginning of the period |
|
22,181 |
|
|
|
21,385 |
|
|
|
18,423 |
|
|
|
20,156 |
|
|
|
14,844 |
|
Impact of adoption of ASC
326 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,285 |
) |
|
|
— |
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
Construction and development |
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
3 |
|
|
|
66 |
|
Residential |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7 |
|
Commercial |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial and industrial |
|
424 |
|
|
|
— |
|
|
|
210 |
|
|
|
686 |
|
|
|
479 |
|
Consumer and other |
|
2 |
|
|
|
— |
|
|
|
18 |
|
|
|
8 |
|
|
|
26 |
|
Total charge-offs |
|
426 |
|
|
|
3 |
|
|
|
228 |
|
|
|
697 |
|
|
|
578 |
|
Recoveries: |
|
|
|
|
|
|
|
|
|
Construction and development |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Residential |
|
4 |
|
|
|
10 |
|
|
|
4 |
|
|
|
41 |
|
|
|
50 |
|
Commercial |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial and industrial |
|
39 |
|
|
|
— |
|
|
|
1 |
|
|
|
54 |
|
|
|
205 |
|
Consumer and other |
|
1 |
|
|
|
16 |
|
|
|
18 |
|
|
|
19 |
|
|
|
30 |
|
Total recoveries |
|
44 |
|
|
|
26 |
|
|
|
23 |
|
|
|
114 |
|
|
|
285 |
|
Net charge-offs (recoveries) |
$ |
382 |
|
|
$ |
(23 |
) |
|
$ |
205 |
|
|
$ |
583 |
|
|
$ |
293 |
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses |
$ |
2,579 |
|
|
$ |
773 |
|
|
$ |
1,938 |
|
|
$ |
6,090 |
|
|
$ |
5,605 |
|
Balance at end of the
period |
$ |
24,378 |
|
|
$ |
22,181 |
|
|
$ |
20,156 |
|
|
$ |
24,378 |
|
|
$ |
20,156 |
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses on
unfunded commitments at beginning of the period |
$ |
1,524 |
|
|
$ |
1,495 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Impact of adoption of ASC
326 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,285 |
|
|
|
— |
|
Provision for credit losses on
unfunded commitments |
|
(285 |
) |
|
|
29 |
|
|
|
— |
|
|
|
(46 |
) |
|
|
— |
|
Balance at the end of the
period |
$ |
1,239 |
|
|
$ |
1,524 |
|
|
$ |
— |
|
|
$ |
1,239 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
Allowance to loans, net of
unearned income |
|
1.29 |
% |
|
|
1.25 |
% |
|
|
1.27 |
% |
|
|
1.29 |
% |
|
|
1.27 |
% |
Allowance to gross loans |
|
1.29 |
% |
|
|
1.25 |
% |
|
|
1.27 |
% |
|
|
1.29 |
% |
|
|
1.27 |
% |
Net charge-offs (recoveries)
to average loans, net of unearned income(1) |
|
0.08 |
% |
|
|
(0.01 |
)% |
|
|
0.05 |
% |
|
|
0.03 |
% |
|
|
0.02 |
% |
Provision for credit losses to
average loans, net of unearned income(1) |
|
0.56 |
% |
|
|
0.18 |
% |
|
|
0.49 |
% |
|
|
0.36 |
% |
|
|
0.39 |
% |
(1) Ratio is annualized.
Reconciliation of Non-GAAP Financial
Measures
Noninterest Expense
In addition to reporting GAAP results, the
Company reports non-GAAP financial measures in this earnings
release and other disclosures. Our management believes that these
non-GAAP financial measures and the information they provide are
useful to investors since these measures permit investors to view
our performance using the same tools that our management uses to
evaluate our performance. While we believe that these non-GAAP
financial measures are useful in evaluating our performance, this
information should be considered as supplemental in nature and not
as a substitute for or superior to the related financial
information prepared in accordance with GAAP. Additionally, these
non-GAAP financial measures may differ from similar measures
presented by other companies.
The following table provides a reconciliation of
the non-GAAP financial measures to their most directly comparable
financial measure presented in accordance with GAAP.
Reconciliation of Non-GAAP Financial Measures |
(Dollars in thousands, except share and per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
December 31,2023 |
|
September 30,2023 |
|
December 31,2022 |
|
December 31,2023 |
|
December 31,2022 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
8,896 |
|
|
$ |
6,629 |
|
|
$ |
10,592 |
|
|
$ |
31,952 |
|
|
$ |
27,071 |
|
Add: One-time retirement
related expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,571 |
|
|
|
— |
|
Add: Professional fees related
to ERC |
|
— |
|
|
|
(1,243 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Add: Net OREO losses |
|
(154 |
) |
|
|
(9 |
) |
|
|
— |
|
|
|
(156 |
) |
|
|
— |
|
Less: Employee retention
related revenue |
|
— |
|
|
|
(5,100 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less: Fee received on early
loan payoff |
|
1,863 |
|
|
|
— |
|
|
|
— |
|
|
|
1,863 |
|
|
|
— |
|
Less: Net gain on sale of
branches |
|
— |
|
|
|
— |
|
|
|
2,372 |
|
|
|
— |
|
|
|
2,372 |
|
Less: BOLI benefit claim |
|
— |
|
|
|
— |
|
|
|
774 |
|
|
|
— |
|
|
|
774 |
|
Less: Net gain (loss) on
securities |
|
98 |
|
|
|
(12 |
) |
|
|
(86 |
) |
|
|
555 |
|
|
|
(632 |
) |
Less: Tax effect |
|
(508 |
) |
|
|
926 |
|
|
|
(549 |
) |
|
|
(241 |
) |
|
|
(418 |
) |
Core net
income |
$ |
7,289 |
|
|
$ |
9,563 |
|
|
$ |
8,081 |
|
|
$ |
31,190 |
|
|
$ |
24,975 |
|
Average assets |
$ |
2,303,398 |
|
|
$ |
2,282,217 |
|
|
$ |
1,994,087 |
|
|
$ |
2,211,739 |
|
|
$ |
1,893,046 |
|
Core return on average
assets |
|
1.26 |
% |
|
|
1.66 |
% |
|
|
1.61 |
% |
|
|
1.41 |
% |
|
|
1.32 |
% |
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
8,896 |
|
|
$ |
6,629 |
|
|
$ |
10,592 |
|
|
$ |
31,952 |
|
|
$ |
27,071 |
|
Add: One-time retirement
related expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,571 |
|
|
|
— |
|
Add: Professional fees related
to ERC |
|
— |
|
|
|
(1,243 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Add: Net OREO losses |
|
(154 |
) |
|
|
(9 |
) |
|
|
— |
|
|
|
(156 |
) |
|
|
— |
|
Add: Provision |
|
2,579 |
|
|
|
773 |
|
|
|
1,938 |
|
|
|
6,090 |
|
|
|
5,605 |
|
Less: Employee retention
related revenue |
|
— |
|
|
|
(5,100 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less: Fee received on early
loan payoff |
|
1,863 |
|
|
|
— |
|
|
|
— |
|
|
|
1,863 |
|
|
|
— |
|
Less: Net gain on sale of
branches |
|
— |
|
|
|
— |
|
|
|
2,372 |
|
|
|
— |
|
|
|
2,372 |
|
Less: BOLI benefit claim |
|
— |
|
|
|
— |
|
|
|
774 |
|
|
|
— |
|
|
|
774 |
|
Less: Net gain (loss) on
securities |
|
98 |
|
|
|
(12 |
) |
|
|
(86 |
) |
|
|
555 |
|
|
|
(632 |
) |
Add: Income taxes |
|
2,330 |
|
|
|
1,866 |
|
|
|
2,521 |
|
|
|
9,068 |
|
|
|
7,725 |
|
Pretax pre-provision
core net income |
$ |
11,690 |
|
|
$ |
13,128 |
|
|
$ |
11,991 |
|
|
$ |
46,107 |
|
|
$ |
37,887 |
|
Average assets |
$ |
2,303,398 |
|
|
$ |
2,282,217 |
|
|
$ |
1,994,087 |
|
|
$ |
2,211,739 |
|
|
$ |
1,893,046 |
|
Pretax pre-provision
core return on average assets |
|
2.01 |
% |
|
|
2.28 |
% |
|
|
2.39 |
% |
|
|
2.08 |
% |
|
|
2.00 |
% |
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
20,404 |
|
|
$ |
20,731 |
|
|
$ |
20,884 |
|
|
$ |
80,112 |
|
|
$ |
71,338 |
|
Add: Fully-taxable equivalent
adjustments(1) |
|
99 |
|
|
|
70 |
|
|
|
84 |
|
|
|
312 |
|
|
|
335 |
|
Net interest income -
FTE |
$ |
20,503 |
|
|
$ |
20,801 |
|
|
$ |
20,968 |
|
|
$ |
80,424 |
|
|
$ |
71,673 |
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
3.69 |
% |
|
|
3.78 |
% |
|
|
4.38 |
% |
|
|
3.81 |
% |
|
|
3.99 |
% |
Effect of fully-taxable
equivalent adjustments(1) |
|
0.02 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.02 |
% |
Net interest margin -
FTE |
|
3.71 |
% |
|
|
3.79 |
% |
|
|
4.39 |
% |
|
|
3.82 |
% |
|
|
4.01 |
% |
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity |
$ |
214,964 |
|
|
$ |
201,924 |
|
|
$ |
181,719 |
|
|
$ |
214,964 |
|
|
$ |
181,719 |
|
Less: Intangible assets |
|
17,761 |
|
|
|
17,843 |
|
|
|
18,088 |
|
|
|
17,761 |
|
|
|
18,088 |
|
Tangible common
equity |
$ |
197,203 |
|
|
$ |
184,081 |
|
|
$ |
163,631 |
|
|
$ |
197,203 |
|
|
$ |
163,631 |
|
|
|
|
|
|
|
|
|
|
|
(1) Assumes a 24.0% tax rate. |
|
Reconciliation of Non-GAAP Financial Measures |
(Dollars in thousands, except share and per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
December 31,2023 |
|
September 30,2023 |
|
December 31,2022 |
|
December 31,2023 |
|
December 31,2022 |
|
|
|
|
|
|
|
|
|
Core net income |
$ |
7,289 |
|
|
$ |
9,563 |
|
|
$ |
8,081 |
|
|
$ |
31,190 |
|
|
$ |
24,975 |
|
Diluted weighted average
shares outstanding |
|
9,021,358 |
|
|
|
9,040,687 |
|
|
|
8,932,585 |
|
|
|
9,038,004 |
|
|
|
8,949,669 |
|
Diluted core earnings
per share |
$ |
0.81 |
|
|
$ |
1.06 |
|
|
$ |
0.90 |
|
|
$ |
3.45 |
|
|
$ |
2.79 |
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding at
year or period end |
|
8,841,349 |
|
|
|
8,834,168 |
|
|
|
8,706,920 |
|
|
|
8,841,349 |
|
|
|
8,706,920 |
|
Tangible book value
per share |
$ |
22.30 |
|
|
$ |
20.84 |
|
|
$ |
18.79 |
|
|
$ |
22.30 |
|
|
$ |
18.79 |
|
|
|
|
|
|
|
|
|
|
|
Total assets at end of
period |
$ |
2,446,339 |
|
|
$ |
2,296,527 |
|
|
$ |
2,045,204 |
|
|
$ |
2,446,339 |
|
|
$ |
2,045,204 |
|
Less: Intangible assets |
|
17,761 |
|
|
|
17,843 |
|
|
|
18,088 |
|
|
|
17,761 |
|
|
|
18,088 |
|
Adjusted assets at end of
period |
$ |
2,428,578 |
|
|
$ |
2,278,684 |
|
|
$ |
2,027,116 |
|
|
$ |
2,428,578 |
|
|
$ |
2,027,116 |
|
Tangible common equity
to tangible assets |
|
8.12 |
% |
|
|
8.08 |
% |
|
|
8.07 |
% |
|
|
8.12 |
% |
|
|
8.07 |
% |
|
|
|
|
|
|
|
|
|
|
Total average shareholders
equity |
$ |
207,324 |
|
|
$ |
202,955 |
|
|
$ |
176,769 |
|
|
$ |
197,680 |
|
|
$ |
174,107 |
|
Less: Average intangible
assets |
|
17,809 |
|
|
|
17,893 |
|
|
|
18,134 |
|
|
|
17,932 |
|
|
|
18,236 |
|
Average tangible common
equity |
$ |
189,515 |
|
|
$ |
185,062 |
|
|
$ |
158,635 |
|
|
$ |
179,748 |
|
|
$ |
155,871 |
|
Net income to common
shareholders |
$ |
8,896 |
|
|
$ |
6,629 |
|
|
$ |
10,592 |
|
|
$ |
31,952 |
|
|
$ |
27,071 |
|
Return on average
tangible common equity |
|
18.62 |
% |
|
|
14.21 |
% |
|
|
26.49 |
% |
|
|
17.78 |
% |
|
|
17.37 |
% |
Average tangible common
equity |
$ |
189,515 |
|
|
$ |
185,062 |
|
|
$ |
158,635 |
|
|
$ |
179,748 |
|
|
$ |
155,871 |
|
Core net income |
$ |
7,289 |
|
|
$ |
9,563 |
|
|
$ |
8,081 |
|
|
$ |
31,190 |
|
|
$ |
24,975 |
|
Core return on average
tangible common equity |
|
15.26 |
% |
|
|
20.50 |
% |
|
|
20.21 |
% |
|
|
17.35 |
% |
|
|
16.02 |
% |
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
20,404 |
|
|
$ |
20,731 |
|
|
$ |
20,884 |
|
|
$ |
80,112 |
|
|
$ |
71,338 |
|
Add: Noninterest income |
|
3,118 |
|
|
|
(2,894 |
) |
|
|
4,603 |
|
|
|
8,874 |
|
|
|
8,677 |
|
Less: Employee retention
related revenue |
|
— |
|
|
|
(5,100 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less: Fee received on early
loan payoff |
|
1,863 |
|
|
|
— |
|
|
|
— |
|
|
|
1,863 |
|
|
|
— |
|
Less: Gain on sale of
branches |
|
— |
|
|
|
— |
|
|
|
2,600 |
|
|
|
— |
|
|
|
2,600 |
|
Less: BOLI benefit claim |
|
— |
|
|
|
— |
|
|
|
774 |
|
|
|
— |
|
|
|
774 |
|
Less: Net gain (loss) on
securities |
|
98 |
|
|
|
(12 |
) |
|
|
(86 |
) |
|
|
555 |
|
|
|
(632 |
) |
Operating revenue |
$ |
21,561 |
|
|
$ |
22,949 |
|
|
$ |
22,199 |
|
|
$ |
86,568 |
|
|
$ |
77,273 |
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
Total noninterest expense |
$ |
9,717 |
|
|
$ |
8,569 |
|
|
$ |
10,436 |
|
|
$ |
41,876 |
|
|
$ |
39,614 |
|
Less: One-time retirement
related expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,571 |
|
|
|
— |
|
Less: Professional fees
related to ERC |
|
— |
|
|
|
(1,243 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less: Net OREO losses |
|
(154 |
) |
|
|
(9 |
) |
|
|
— |
|
|
|
(156 |
) |
|
|
— |
|
Less: Loss on sale of
branches |
|
— |
|
|
|
— |
|
|
|
228 |
|
|
|
— |
|
|
|
228 |
|
Adjusted noninterest
expenses |
$ |
9,871 |
|
|
$ |
9,821 |
|
|
$ |
10,208 |
|
|
$ |
40,461 |
|
|
$ |
39,386 |
|
Core efficiency
ratio |
|
45.78 |
% |
|
|
42.79 |
% |
|
|
45.98 |
% |
|
|
46.74 |
% |
|
|
50.97 |
% |
Southern States Bancshares (NASDAQ:SSBK)
Historical Stock Chart
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Southern States Bancshares (NASDAQ:SSBK)
Historical Stock Chart
Von Sep 2023 bis Sep 2024