Pacific Continental Corporation Reports Second Quarter 2014 Results
PR Newswire Association LLC |
Recent highlights:
- Net income of
$4.1 million for the quarter, up 11.39% over second quarter last year. - Announced share repurchase plan and repurchased 134,722 shares during the second quarter 2014.
- Loan growth continued for the twelfth consecutive quarter.
- Efficiency ratio below 60.00%.
- Declared third quarter 2014 regular quarterly cash dividend of
$0.10 per share and a special cash dividend of$0.03 per share. - Total risk-based capital ratio of 15.73%, well above the 10.00% minimum for "well-capitalized" designation.
- Recognized by the Seattle Business magazine as one of
Washington's 100 Best Companies to Work for in 2014.
Net income
Net income for second quarter 2014 was
"We are certainly pleased with our second quarter performance and our active management of capital, which have provided solid returns to our shareholders," said
Capital levels
On
The Company's capital ratios continue to be well above the minimum for the
Loan activity continues
Outstanding gross loans at
"The success of our organic loan growth was driven by our well-established business model and dedication to improving efficiencies," said
Core deposits
Credit quality and statistics
The Company had no provision for loan losses during the second quarter 2014. This was the fifth consecutive quarter with no provision for loan losses, reflecting the credit quality of the loan portfolio. With the growth in the loan portfolio, the allowance for loan losses as a percentage of outstanding loans at
At
"We are pleased with the continued improvement of the overall credit quality of our loan portfolio," said
Net interest margin
The second quarter 2014 net interest margin averaged 4.34%, an improvement of 2 basis points over first quarter 2014, and a 15 basis point improvement over second quarter 2013. The improvement and stabilization of the net interest margin was attributable to higher yields on the securities portfolio and the change in the earning asset mix as higher yielding loans are proportionally a greater percentage of total earning assets. During the second quarter 2014, the accretion of loan fair value marks was
Noninterest income and expense
Second quarter noninterest income was
Noninterest expense in second quarter 2014 was down
Conference call and audio webcast
Management will conduct a live conference call and audio webcast for interested parties relating to the Company's results for the second quarter 2014 on
About
Pacific
Since its founding in 1972,
Forward-Looking Statement Safe Harbor
This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as "anticipates," "targets," "expects," "estimates," "intends," "plans," "goals," "believes" "anticipates" and other similar expressions or future or conditional verbs such as "will," "should," "would" and "could." The forward-looking statements made represent
|
||||||||||
Consolidated Income Statements |
||||||||||
(In thousands, except share and per share amounts) |
||||||||||
(Unaudited) |
||||||||||
Three months ended |
Linked |
Year over |
||||||||
June 30, |
|
June 30, |
Quarter |
Year |
||||||
2014 |
2014 |
2013 |
% Change |
% Change |
||||||
Interest and dividend income |
||||||||||
Loans |
$ 13,514 |
$ 13,174 |
$ 13,066 |
2.58% |
3.43% |
|||||
Taxable securities |
1,614 |
1,532 |
1,237 |
5.35% |
30.48% |
|||||
Tax-exempt securities |
488 |
483 |
474 |
1.04% |
2.95% |
|||||
Federal funds sold & interest-bearing deposits with banks |
2 |
2 |
2 |
0.00% |
0.00% |
|||||
15,618 |
15,191 |
14,779 |
2.81% |
5.68% |
||||||
Interest expense |
||||||||||
Deposits |
821 |
806 |
900 |
1.86% |
-8.78% |
|||||
|
280 |
280 |
305 |
0.00% |
-8.20% |
|||||
Junior subordinated debentures |
56 |
56 |
55 |
0.00% |
1.82% |
|||||
Federal funds purchased |
4 |
5 |
3 |
-20.00% |
33.33% |
|||||
1,161 |
1,147 |
1,263 |
1.22% |
-8.08% |
||||||
</td> | ||||||||||
Net interest income |
14,457 |
14,044 |
13,516 |
2.94% |
6.96% |
|||||
Provision for loan losses |
- |
- |
- |
|||||||
Net interest income after provision for loan losses |
14,457 |
14,044 |
13,516 |
2.94% |
6.96% |
|||||
Noninterest income |
||||||||||
Service charges on deposit accounts |
540 |
518 |
489 |
4.25% |
10.43% |
|||||
Other fee income, principally bankcard |
229 |
217 |
412 |
5.53% |
-44.42% |
|||||
Bank-owned life insurance income |
117 |
117 |
130 |
0.00% |
-10.00% |
|||||
(Loss) gain on sale of investment securities |
(100) |
63 |
- |
-258.73% |
NA |
|||||
Other noninterest income |
370 |
408 |
504 |
-9.31% |
-26.59% |
|||||
1,156 |
1,323 |
1,535 |
-12.62% |
-24.69% |
||||||
Noninterest expense |
||||||||||
Salaries and employee benefits |
6,093 |
5,819 |
5,324 |
4.71% |
14.44% |
|||||
Premises and equipment |
924 |
943 |
937 |
-2.01% |
-1.39% |
|||||
Data processing |
693 |
670 |
672 |
3.43% |
3.13% |
|||||
Legal and professional fees |
251 |
487 |
581 |
-48.46% |
-56.80% |
|||||
Business development |
340 |
375 |
528 |
-9.33% |
-35.61% |
|||||
|
217 |
220 |
221 |
-1.36% |
-1.81% |
|||||
Bankcard processing |
2 |
3 |
141 |
-33.33% |
-98.58% |
|||||
Other real estate expense |
16 |
223 |
153 |
-92.83% |
-89.54% |
|||||
Other noninterest expense |
733 |
771 |
951 |
-4.93% |
-22.92% |
|||||
9,269 |
9,511 |
9,508 |
-2.54% |
-2.51% |
||||||
Income before provision for income taxes |
6,344 |
5,856 |
5,543 |
8.33% |
14.45% |
|||||
Provision for income taxes |
2,196 |
2,024 |
1,819 |
8.50% |
20.73% |
|||||
Net income |
$ 4,148 |
$ 3,832 |
$ 3,724 |
8.25% |
11.39% |
|||||
Earnings per share: |
||||||||||
Basic |
$ 0.23 |
$ 0.21 |
$ 0.21 |
8.29% |
11.28% |
|||||
Diluted |
$ 0.23 |
$ 0.21 |
$ 0.21 |
8.29% |
11.02% |
|||||
Weighted average shares outstanding: |
||||||||||
Basic |
17,889,562 |
17,897,593 |
17,872,378 |
|||||||
Common stock equivalents |
||||||||||
attributable to stock-based awards |
229,850 |
228,595 |
187,703 |
|||||||
Diluted |
18,119,412 |
18,126,188 |
18,060,081 |
|||||||
PERFORMANCE RATIOS |
||||||||||
Return on average assets |
1.13% |
1.06% |
1.04% |
|||||||
Return on average equity (book) |
9.16% |
8.61% |
8.19% |
|||||||
Return on average equity (tangible) (1) |
10.53% |
9.90% |
9.42% |
|||||||
Net interest margin - fully tax equivalent yield (2) |
4.34% |
4.32% |
4.19% |
|||||||
Efficiency ratio (3)</span> |
58.38% |
60.86% |
62.12% |
|||||||
. |
(1) Tangible equity excludes goodwill and core deposit intangible assets related to acquisitions. |
||||||||||
(2) Net interest margin is reported on a tax-equivalent yield basis at a 35% tax rate. |
||||||||||
(3)Efficiency ratio is noninterest expense as a percent of net interest income (on a tax equivalent basis) plus noninterest income. |
|
||||||
Year-to-Date Consolidated Income Statements |
||||||
(In thousands, except share and per share amounts) |
||||||
(Unaudited) |
||||||
Six months ended |
Year over |
|||||
June 30, |
June 30, |
Year |
||||
2014 |
2013 |
% Change |
||||
Interest and dividend income |
||||||
Loans |
$ 26,688 |
$ 25,765 |
3.58% |
|||
Taxable securities |
3,146 |
2,674 |
17.65% |
|||
Tax-exempt securities |
972 |
941 |
3.29% |
|||
Federal funds sold & interest-bearing deposits with banks |
4 |
5 |
-20.00% |
|||
30,810 |
29,385 |
4.85% |
||||
Interest expense |
||||||
Deposits |
1,627 |
1,785 |
-8.85% |
|||
|
560 |
613 |
-8.65% |
|||
Junior subordinated debentures |
112 |
89 |
25.84% |
|||
Federal funds purchased |
9 |
7 |
28.57% |
|||
2,308 |
2,494 |
-7.46% |
||||
Net interest income |
28,502 |
26,891 |
5.99% |
|||
Provision for loan losses |
-</p> |
250 |
-100.00% |
|||
Net interest income after provision for loan losses |
28,502 |
26,641 |
6.99% |
|||
Noninterest income |
||||||
Service charges on deposit accounts |
1,058 |
949 |
11.49% |
|||
Other fee income, principally bankcard |
446 |
784 |
-43.11% |
|||
Bank-owned life insurance income |
234 |
256 |
-8.59% |
|||
Loss on sale of investment securities |
(36) |
(8) |
350.00% |
|||
Impairment losses on investment securities (OTTI) |
- |
(16) |
-100.00% |
|||
Other noninterest income |
778 |
850 |
-8.47% |
|||
2,480 |
2,815 |
-11.90% |
||||
Noninterest expense |
||||||
Salaries and employee benefits |
11,912 |
10,803 |
10.27% |
|||
Premises and equipment |
1,867 |
1,827 |
2.19% |
|||
Data processing |
1,362 |
1,295 |
5.17% |
|||
Legal and professional fees |
739 |
1,039</span> |
-28.87% |
|||
Business development |
715 |
1,024 |
-30.18% |
|||
|
437 |
443 |
-1.35% |
|||
Other real estate expense |
239 |
577 |
-58.58% |
|||
Bankcard processing |
5 |
268 |
-98.13% |
|||
Merger related expenses(1) |
- |
1,246 |
-100.00% |
|||
Other noninterest expense |
1,506 |
1,756 |
-14.24% |
|||
18,782 |
20,278 |
-7.38% |
||||
Income before provision for income taxes |
12,200 |
9,178 |
32.93% |
|||
Provision for income taxes |
4,220 |
3,004 |
40.48% |
|||
Net income |
$ 7,980 |
$ 6,174 |
29.25% |
|||
Earnings per share: |
||||||
Basic |
$ 0.45 |
$ 0.35 |
28.97% |
|||
Diluted |
$ 0.44 |
$ 0.34 |
28.62% |
|||
Weighted average shares outstanding: |
||||||
Basic |
17,893,555 |
17,854,094 |
||||
Common stock equivalents |
||||||
attributable to stock-based awards |
236,278 |
187,689 |
||||
Diluted |
18,129,833 |
18,041,783 |
||||
PERFORMANCE RATIOS |
||||||
Return on average assets |
1.10% |
0.87% |
||||
Return on average equity (book) |
8.89% |
6.81% |
||||
Return on average equity (tangible) (2) |
10.22% |
7.82% |
||||
Net interest margin (3) |
4.33% |
4.23% |
||||
Efficiency ratio (4) |
59.62% |
67.12% |
||||
(1) Represents expenses associated with the acquisition of |
||||||
(2) Tangible equity excludes goodwill and core deposit intangible assets related to acquisitions. |
||||||
(3) Net interest margin is reported on a tax-equivalent yield basis at a 35% tax rate. |
||||||
(4)Efficiency ratio is noninterest expense divided by operating revenues. Operating revenues are net interest income plus noninterest income. |
||||||
|
||||||||
Consolidated Balance Sheets |
||||||||
(In thousands, except share amounts) |
||||||||
(Unaudited) |
||||||||
Linked |
Year over |
|||||||
Quarter |
Year |
|||||||
2014 |
2014 |
2013 |
% Change |
% Change |
||||
ASSETS |
||||||||
Cash and due from banks |
$ 28,219 |
$ 24,455 |
$ 21,631 |
15.39% |
30.46% |
|||
Interest-bearing deposits with banks |
15,224 |
3,129 |
2,631 |
386.55% |
478.64% |
|||
Total cash and cash equivalents |
43,443 |
27,584 |
24,262 |
57.49% |
79.06% |
|||
Securities available-for-sale |
344,645 |
341,992 |
357,394 |
0.78% |
-3.57% |
|||
Loans, less allowance for loan losses and net deferred fees |
1,014,346 |
1,004,751 |
943,255 |
0.95% |
7.54% |
|||
Interest receivable |
5,101 |
4,693 |
5,101 |
8.69% |
0.00% |
|||
|
10,227 |
10,327 |
10,620 |
-0.97% |
-3.70% |
|||
Property and equipment, net of accumulated depreciation |
18,366 |
18,621 |
19,310 |
-1.37% |
-4.89% |
|||
Goodwill and intangible assets |
23,555 |
23,585 |
23,740 |
-0.13% |
-0.78% |
|||
Deferred tax asset |
7,154 |
8,572 |
9,845 |
-16.54% |
-27.33% |
|||
Other real estate owned |
11,531 |
11,531 |
17,823 |
0.00% |
-35.30% |
|||
Bank-owned life insurance |
16,370 |
16,253 |
15,877 |
0.72% |
3.11% |
|||
Other assets |
4,025 |
3,682 |
3,847 |
9.32% |
4.63% |
|||
Total assets |
|
$ 1,471,591 |
|
1.85% |
4.73% |
|||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||
Deposits |
||||||||
Noninterest-bearing demand |
$ 397,942 |
$ 340,464 |
$ 341,218 |
16.88% |
16.62% |
|||
Savings and interest-bearing checking |
565,265 |
588,822 |
545,749 |
-4.00% |
3.58% |
|||
Core time deposits |
63,335 |
61,647 |
71,774 |
2.74% |
-11.76% |
|||
Total core deposits (2) |
1,026,542 |
990,933 |
958,741 |
3.59% |
7.07% |
|||
Other deposits |
106,112 |
106,422 |
111,887 |
-0.29% |
-5.16% |
|||
Total deposits |
1,132,654 |
1,097,355 |
1,070,628 |
3.22% </td> |
5.79% |
|||
Federal funds and overnight funds purchased |
6,410 |
5,620 |
7,660 |
14.06% |
-16.32% |
|||
|
164,500 |
175,000 |
162,000 |
-6.00% |
1.54% |
|||
Junior subordinated debentures |
8,248 |
8,248 |
8,248 |
0.00% |
0.00% |
|||
Accrued interest and other payables |
4,814 |
3,970 |
3,609 |
21.26% |
33.39% |
|||
Total liabilities |
1,316,626 |
1,290,193 |
1,252,145 |
2.05% |
5.15% |
|||
Shareholders' equity |
||||||||
Common stock: 50,000,000 shares authorized. Shares issued and outstanding: 17,848,900 at |
132,532 |
134,293 |
133,331 |
-1.31% |
-0.60% |
|||
Retained earnings |
45,887 |
45,503 |
45,349 |
0.84% |
1.19% |
|||
Accumulated other comprehensive income |
3,718 |
1,602 |
249 |
132.08% |
1393.17% |
|||
182,137 |
181,398 |
178,929 |
0.41% |
1.79% |
||||
Total liabilities and shareholders' equity |
|
$ 1,471,591 |
|
1.85% |
4.73% |
|||
CAPITAL RATIOS |
||||||||
Total capital (to risk weighted assets) |
15.73% |
16.21% |
16.56% |
|||||
Tier I capital (to risk weighted assets) |
14.48% |
14.95% |
15.30% |
|||||
Tier I capital (to leverage assets) |
11.26% |
11.44% |
11.58% |
|||||
Tangible common equity (to tangible assets)(1) |
10.75% |
10.90% |
11.03% |
|||||
Tangible common equity (to risk-weighted assets)(1) |
14.44% |
14.37% |
14.58% |
|||||
OTHER FINANCIAL DATA |
||||||||
Shares outstanding at end of period |
17,848,900 |
17,909,906 |
17,887,945 |
|||||
Tangible shareholders' equity(1) |
$ 158,582 |
$ 157,813 |
$ 155,189 |
|||||
Book value per share |
$ 10.20 |
$ 10.13 |
$ 10.00 |
|||||
Tangible book value per share |
$ 8.88 |
$ 8.81 |
$ 8.68 |
|||||
(1)Tangible common equity excludes goodwill and core deposit intangible assets related to acquisitions. |
||||||||||
(2)Core deposits include demand, interest checking, money market, savings, and local time deposits, including local nonpublic time deposits in excess of |
||||||||||
|
||||||
Loans by Type |
||||||
(In thousands) |
||||||
(Unaudited) |
||||||
|
|
|
||||
2014 |
2014 |
2013 |
||||
LOANS BY TYPE |
||||||
Real estate secured loans: |
||||||
Permanent loans: |
||||||
Multi-family residential |
$ 50,867 |
$ 51,182 |
$ 45,142 |
|||
Residential 1-4 family |
46,287 |
46,557 |
51,312 |
|||
Owner-occupied commercial |
255,562 |
250,211 |
238,332 |
|||
Nonowner-occupied commercial |
182,141 |
168,888 |
172,159 |
|||
Total permanent real estate loans |
534,857 |
516,838 |
506,945 |
|||
Construction loans: |
||||||
Multi-family residential |
19,539 |
22,717 |
23,925 |
|||
Residential 1-4 family |
33,951 |
25,859 |
26,277 |
|||
Commercial real estate |
28,019 |
34,936 |
20,317 |
|||
Commercial bare land and acquisition & development |
11,096 |
11,456 |
10,664 |
|||
Residential bare land and acquisition & development |
6,240 |
7,011 |
8,087 |
|||
Total construction real estate loans |
98,845 |
101,979 |
89,270 |
|||
Total real estate loans |
633,702 |
618,817 |
596,215 |
|||
Commercial loans |
392,810 |
397,738 |
359,397 |
|||
Consumer loans |
3,410 |
3,518 |
3,922 |
|||
Other loans |
1,207 |
1,042 |
899 |
|||
Gross loans |
1,031,129 |
1,021,115 |
960,433 |
|||
Deferred loan origination fees |
(1,108) |
(970) |
(875) |
|||
1,030,021 |
1,020,145 |
959,558 |
||||
Allowance for loan losses |
(15,675) |
(15,394) |
(16,303) |
|||
|
|
|
||||
SELECTED MARKET LOAN DATA |
||||||
|
$ 354,430 |
$ 347,233 |
|
|||
|
399,764 |
400,537 |
391,822 |
|||
|
134,969 |
131,492 |
140,137 |
|||
National health care gross loans, period-end (1) |
141,966 |
141,853 |
103,101 |
|||
Total gross loans, period-end |
|
|
|
|||
DENTAL |
||||||
Local Dental gross loans, period-end |
$ 169,102 |
$ 172,022 |
|
|||
National Dental gross loans, period-end |
133,720 |
133,733 |
102,338 |
|||
Total gross dental loans, period-end |
$ 302,822 |
$ 305,755 |
|
|||
(1) National health care loans include loans to heath care professionals, primarily dental practitioners, operating outside of |
||||||
(2)Dental loans include loans to dental professionals for the purpose of practice expansion, acquisition or other purpose, supported by the cash flows of a dental practice. |
||||||
|
||||||||||
Selected Other Financial Information and Ratios |
||||||||||
(In thousands) |
||||||||||
(Unaudited) |
||||||||||
Three months ended |
Six months ended |
|||||||||
|
|
|
|
|
||||||
2014 |
2014 |
2013 |
2014 |
2013 |
||||||
BALANCE SHEET AVERAGES |
||||||||||
Loans, net of deferred fees |
|
|
$ 955,717 |
|
$ 936,699 |
|||||
Allowance for loan losses |
(15,546) |
(15,906) |
(16,465) |
(15,725) |
(16,426) |
|||||
Loans, net of allowance |
1,011,391 |
992,655 |
939,252 |
1,002,075 |
920,273 |
|||||
Securities and short-term deposits |
348,985 |
350,774 |
376,031 |
349,874 |
381,641 |
|||||
Earning assets |
1,360,376 |
1,343,429 |
1,315,283 |
1,351,949 |
1,301,914 |
|||||
Noninterest-earning assets |
113,094 |
117,666 |
123,220 |
115,368 |
123,405 |
|||||
Assets |
|
|
|
|
|
|||||
Interest-bearing core deposits(1) |
$ 648,530 |
$ 647,114 |
$ 638,195 |
$ 647,825 |
$ 637,173 |
|||||
Noninterest-bearing core deposits(1) |
362,204 |
345,369 |
328,627 |
353,833 |
317,961 |
|||||
Core deposits(1) |
1,010,734 |
992,483 |
966,822 |
1,001,658 |
955,134 |
|||||
Noncore interest-bearing deposits |
105,229 |
101,421 |
108,804 |
103,336 |
109,865 |
|||||
Deposits |
1,115,963 |
1,093,904 |
1,075,626 |
1,104,994 |
1,064,999 |
|||||
Borrowings |
171,385 |
181,381 |
177,319 |
176,355 |
173,833 |
|||||
Other noninterest-bearing liabilities |
4,545 |
5,280 |
3,174 |
4,912 |
3,790 |
|||||
Liabilities |
1,291,893 |
1,280,565 |
1,256,119 |
1,286,261 |
1,242,622 |
|||||
Shareholders' equity (book) |
181,577 |
180,530 |
182,384 |
181,056 |
182,697 |
|||||
Liabilities and equity |
|
|
|
|
|
|||||
Shareholders' equity (tangible)(2) |
$ 158,006 |
$ 156,929 |
$ 158,630 |
$ 157,470 |
$ 159,251 |
|||||
Period-end earning assets |
|
|
|
|||||||
SELECTED MARKET DEPOSIT DATA |
||||||||||
|
$ 616,294 |
$ 604,505 |
$ 578,829 |
|||||||
|
250,288 |
234,631 |
240,582 |
|||||||
|
159,960 |
151,797 |
139,330 |
|||||||
Total core deposits, period-end(1) |
1,026,542 |
990,933 |
958,741 |
|||||||
Other deposits, period-end |
106,112 |
106,422 |
111,887 |
|||||||
Total |
|
|
|
|||||||
|
$ 624,721 |
$ 602,977 |
$ 589,646 |
|||||||
|
234,567 |
236,945 |
242,668 |
|||||||
|
151,446 |
152,561 |
134,508 |
|||||||
Total core deposits, average(1) |
1,010,734 |
992,483 |
966,822 |
|||||||
Other deposits, average |
105,229 |
101,421 |
108,804 |
|||||||
Total |
|
|
|
|||||||
NET INTEREST MARGIN RECONCILIATION |
||||||||||
Yield on average loans |
5.36% |
5.38% |
5.58% |
5.37% |
5.65% |
|||||
Yield on average securities(3) |
2.72% |
2.63% |
2.08% |
2.67% |
2.16% |
|||||
Yield on average earning assets(3) |
4.68% |
4.66% |
4.59% |
4.67% |
4.62% |
|||||
Rate on average interest-bearing core deposits |
0.29% |
0.31% |
0.35% |
0.30% |
0.36% |
|||||
Rate on average interest-bearing non-core deposits |
1.36% |
1.26% |
1.25% |
1.32% |
1.20% |
|||||
Rate on average interest-bearing deposits |
0.44% |
0.44% |
0.48% |
0.44% |
0.48% |
|||||
Rate on average borrowings |
0.80% |
0.76% |
0.82% |
0.78% |
0.82% |
|||||
Cost of interest-bearing funds |
0.50% |
0.50% |
0.55% |
0.50% |
0.55% |
|||||
Interest rate spread(3) |
4.18% |
4.16% |
4.05% |
4.17% |
4.07% |
|||||
Net interest margin- fully tax equivalent yield(3) |
4.34% |
4.32% |
4.19% |
4.33% |
4.23% |
|||||
Acquired loan fair value accretion impact to net interest margin (4) |
0.03% |
0.07% |
0.11% |
0.05% |
0.09% |
|||||
(1)Core deposits include demand, interest checking, money market, savings, and local time deposits, including local nonpublic time deposits in excess of |
(2)Tangible equity excludes goodwill and core deposit intangible assets related to acquisitions. |
(3)Tax-exempt income has been adjusted to a tax-equivalent basis at a 35% tax rate. The amount of such adjustment was an addition to recorded income of approximately |
(4)During the three months ended |
|
</td> | |||||||||||||||
Nonperforming Assets, Asset Quality Ratios and Allowance for Loan Losses |
||||||||||||||||
(In thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
||||||||||||||
2014 |
2014 |
2013 |
||||||||||||||
NONPERFORMING ASSETS |
||||||||||||||||
Non-accrual loans |
||||||||||||||||
Real estate secured loans: |
||||||||||||||||
Permanent loans: |
||||||||||||||||
Multi-family residential |
$ - |
$ - |
$ - |
|||||||||||||
Residential 1-4 family |
473 |
752 |
1,243 |
|||||||||||||
Owner-occupied commercial |
1,703 |
1,651 |
3,097 |
|||||||||||||
Nonowner-occupied commercial |
708 |
136 |
- |
|||||||||||||
Total permanent real estate loans |
2,884 |
2,539 |
4,340 |
|||||||||||||
Construction loans: |
||||||||||||||||
Multi-family residential |
- |
- |
- |
|||||||||||||
Residential 1-4 family |
- |
- |
- |
|||||||||||||
Commercial real estate |
- |
- |
- |
|||||||||||||
Commercial bare land and acquisition & development |
- |
- |
- |
|||||||||||||
Residential bare land and acquisition & development |
- |
- |
101 |
|||||||||||||
Total construction real estate loans |
- |
- |
101 |
|||||||||||||
Total real estate loans |
2,884 |
2,539 |
4,441 |
|||||||||||||
Commercial loans |
2,047 |
2,623 |
2,890 |
|||||||||||||
Total nonaccrual loans |
4,931 |
5,162 |
7,331 |
|||||||||||||
90-days past due and accruing interest |
- |
- |
- |
|||||||||||||
Total nonperforming loans |
4,931 |
5,162 |
7,331 |
|||||||||||||
Nonperforming loans guaranteed by government |
(325) |
(623) |
(928) |
|||||||||||||
Net nonperforming loans |
4,606 |
4,539 |
6,403 |
|||||||||||||
Other real estate owned |
11,531 |
11,531 |
17,823 |
|||||||||||||
Total nonperforming assets, net of guaranteed loans |
$ 16,137 |
$ 16,070 |
$ 24,226 |
|||||||||||||
ASSET QUALITY RATIOS |
||||||||||||||||
Allowance for loan losses as a percentage of total loans outstanding |
1.52% |
1.51% |
1.70% |
|||||||||||||
Allowance for loan losses as a percentage of total nonperforming loans, net of government guarantees |
340.32% |
339.15% |
254.62% |
|||||||||||||
Net loan (recoveries) charge offs as a percentage of average loans, annualized |
0.05% |
0.21% |
0.06% |
|||||||||||||
Net nonperforming loans as a percentage of total loans |
0.45% |
0.44% |
0.67% |
|||||||||||||
Nonperforming assets as a percentage of total assets |
1.08% |
1.09% |
1.69% |
|||||||||||||
Consolidated classified asset ratio(1) |
24.72% |
26.82% |
33.82% |
|||||||||||||
Past due as a percentage of total loans(2) |
0.08% |
0.20% |
0.11% |
|||||||||||||
Three months ended |
Six Months ended |
|||||||||||||||
|
|
|
|
|
||||||||||||
2014 |
2014 |
2013 |
2014 |
2013 |
||||||||||||
ALLOWANCE FOR LOAN LOSSES |
||||||||||||||||
Balance at beginning of period |
$ 15,394 |
$ 15,917 |
$ 16,312 |
|
|
|||||||||||
Provision for loan losses |
- |
- |
- |
- |
250 |
|||||||||||
Loan charge offs |
(30) |
(601) |
(230) |
(631) |
(828) |
|||||||||||
Loan recoveries |
311 |
78 |
221 |
389 |
536 |
|||||||||||
Net recoveries (charge offs) |
281 |
(523) |
(9) |
(242) |
(292) |
|||||||||||
Balance at end of period |
$ 15,675 |
$ 15,394 |
$ 16,303 |
|
|
|||||||||||
(1) Classified asset ratio is defined as the sum of all loan-related contingent liabilities and loans internallygraded substandard or worse, impaired loans (net of government guarantees), adversely classifiedsecurities, and other real estate owned, divided by total consolidated Tier 1 capital plus the allowancefor loan losses. |
(2)Defined as loans past due more than 30 days and still accruing interest, as a percentage of total loans,net of deferred fees. |
|
|||||
Consolidated Financial Highlights |
|||||
(In thousands) |
|||||
(Unaudited) |
|||||
2nd Quarter |
1st Quarter |
4th Quarter |
3rd Quarter |
2nd Quarter |
|
2014 |
2014 |
2013 |
2013 |
2013 |
|
EARNINGS |
|||||
Net interest income |
$ 14,457 |
$ 14,044 |
$ 14,388 |
$ 14,858 |
$ 13,516 |
Provision for loan loss |
$ - |
$ - |
$ - |
$ - |
$ - |
Noninterest income |
$ 1,156 |
$ 1,323 |
$ 1,563 |
$ 1,447 |
$ 1,535 |
Noninterest expense |
$ 9,269 |
$ 9,511 |
$ 10,045 |
$ 10,406 |
$ 9,508 |
Net income |
$ 4,148 |
$ 3,832 |
$ 3,652 |
$ 3,940 |
$ 3,724 |
Basic earnings per share |
$ 0.23 |
$ 0.21 |
$ 0.20 |
$ 0.22 |
$ 0.21 |
Diluted earnings per share |
$ 0.23 |
$ 0.21 |
$ 0.20 |
$ 0.22 |
$ 0.21 |
Average shares outstanding |
17,889,562 |
17,897,593 |
17,888,818 |
17,888,182 |
17,872,378 |
Average diluted shares outstanding |
18,119,412 |
18,126,188 |
18,126,273 |
18,109,282 |
18,060,081 |
PERFORMANCE RATIOS |
|||||
Return on average assets |
1.13% |
1.06% |
1.00% |
1.09% |
1.04% |
Return on average equity (book) |
9.16% |
8.61% |
8.06% |
8.77% |
8.19% |
Return on average equity (tangible) (1) |
10.53% |
9.90% |
9.28% |
10.12% |
9.42% |
Net interest margin - fully tax equivalent yield (2) |
4.34% |
4.32% |
4.38% |
4.57% |
4.19% |
Efficiency ratio (tax equivalent) (3) |
58.38% |
60.86% |
61.95% |
62.81% |
62.13% |
Full-time equivalent employees |
283 |
285 |
290 |
285 |
278 |
CAPITAL |
|||||
Tier 1 leverage ratio |
11.26% |
11.44% |
11.49% |
11.56% |
11.58% |
Tier 1 risk based ratio |
14.48% |
14.95% |
14.90% |
15.16% |
15.30% |
Total risk based ratio |
15.73% |
16.21% |
16.15% |
16.42% |
16.56% |
Book value per share |
$ 10.20 |
$ 10.13 |
$ 10.01 |
$ 10.04 |
$ 10.00 |
Regular cash dividend per share |
$ 0.10 |
$ 0.10 |
$ 0.09 |
$ 0.09 |
|
Special cash dividend per share |
$ 0.11 |
$ 0.10 |
$ 0.12 |
$ 0.12 |
$ 0.05 |
ASSET QUALITY |
|||||
Allowance for Loan Losses (ALL) |
$ 15,675 |
$ 15,394 |
$ 15,917 |
$ 16,802 |
$ 16,303 |
Non performing Loans (NPLs) net of government guarantees |
$ 4,606 |
$ 4,539 |
$ 4,608 |
$ 5,155 |
$ 6,403 |
Non performing Assets (NPAs) net of government guarantees |
$ 16,137 |
$ 16,070 |
$ 20,963 |
$ 21,757 |
$ 24,226 </td> |
Net loan (recoveries) charge offs |
$ (281) |
$ 523 |
$ 885 |
$ (499) |
$ 9 |
ALL as a percentage of gross loans |
1.52% |
1.51% |
1.60% |
1.72% |
1.70% |
ALL as a % NPLs, net of government guarantees |
340.32% |
339.15% |
345.42% |
325.94% |
254.62% |
Net loan charge offs (recoveries) to average loans |
-0.11% |
0.21% |
0.35% |
-0.21% |
0.00% |
Net NPLs as a percentage of total loans |
0.45% |
0.44% |
0.46% |
0.53% |
0.67% |
Nonperforming assets as a percentage of total assets |
1.08% |
1.09% |
1.45% |
<p class="prnews_p">1.50% |
1.69% |
Consolidated classified asset ratio(4) |
24.72% |
26.82% |
29.02% |
30.25% |
33.82% |
Past due as a percentage of total loans(5) |
0.08% |
0.20% |
0.23% |
0.37% |
0.11% |
END OF PERIOD BALANCES |
|||||
Total securities and short term deposits |
$ 359,869 |
$ 345,121 |
$ 349,084 |
$ 363,547 |
$ 360,026 |
Total loans net of allowance |
|
|
$ 977,928 |
$ 960,916 |
$ 943,255 |
Total earning assets |
|
|
|
|
|
Total assets |
|
|
|
|
|
Total non-interest bearing deposits |
$ 397,942 |
$ 340,464 |
$ 366,890 |
$ 379,598 |
$ 341,218 |
Core deposits(6) |
|
$ 990,933 |
$ 990,315 |
|
$ 958,741 |
Total deposits |
|
|
|
|
|
AVERAGE BALANCES |
|||||
Total securities and short term deposits |
$ 348,985 |
$ 350,774 |
$ 353,061 |
$ 355,059 |
$ 378,834 |
Total loans net of allowance |
|
$ 992,655 |
$ 973,857 |
$ 958,372 |
$ 939,252 |
Total earning assets |
|
|
|
|
|
Total assets |
|
|
|
|
|
Total non-interest bearing deposits |
$ 362,204 |
$ 345,369 |
$ 361,046 |
$ 346,692 |
$ 328,627 |
Core deposits(7) |
|
$ 992,482 |
$ 987,207 |
$ 972,487 |
$ 966,823 |
Total deposits |
|
|
|
|
|
(1) Tangible equity excludes goodwill and core deposit intangible assets related to acquisitions. |
|||||
(2) Net interest margin is reported on a tax-equivalent yield basis at a 35% tax rate. |
|||||
(3)Efficiency ratio is noninterest expense as a percent of net interest income (on a tax equivalent basis) plus noninterest income. |
|||||
(4)All loan-related contingent liabilities and loans internally graded substandard or worse, impaired loans (net of government guarantees), adversely classified securities, and other real estate owned, divided by total consolidated Tier 1 capital plus the allowance for loan losses. |
|||||
(5)Defined as loans past due more than 30 days and still accruing interest, as a percentage of total loans, net of deferred fees. |
|||||
(6)Core deposits include demand, interest checking, money market, savings, and local time deposits, including local nonpublic time deposits in excess of |
SOURCE
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