SB Financial Group Announces Fourth Quarter 2022 Results
Fourth quarter 2022 highlights:
- Net income of
$3.5 million increased six percent compared to the prior year with diluted earnings per share (“EPS”) of$0.50 - Noninterest expense of
$10.3 million declined 11.2 percent from the prior year - Loan growth of
$36.8 million from the linked quarter, or 15.9 percent annualized - Solid asset quality with nonperforming assets at 38 basis points
Twelve months ended
- Net income of
$12.5 million and diluted EPS of$1.77 , compared to$18.3 million , or$2.56 per share or a 30.9 percent decrease - Loans, increased
$141.4 million , or 17.2 percent from the prior year, excluding Paycheck Protection Program (“PPP”) loans, - Deposits decreased by
$26.4 million , or 2.4 percent to$1.09 billion - Mortgage origination volume of
$312.6 million and a servicing portfolio of$1.35 billion - Net recoveries on loans for the year of
$13,000
Highlights | Three Months Ended | Twelve Months Ended | |||||||||||||||
($ in thousands, except per share & ratios) | % Change | % Change | |||||||||||||||
Operating revenue | $ | 14,613 | $ | 15,667 | -6.7 | % | $ | 57,630 | $ | 68,581 | -16.0 | % | |||||
Interest income | 12,937 | 10,003 | 29.3 | % | 44,569 | 41,904 | 6.4 | % | |||||||||
Interest expense | 2,037 | 925 | 120.2 | % | 5,170 | 4,020 | 28.6 | % | |||||||||
Net interest income | 10,900 | 9,078 | 20.1 | % | 39,399 | 37,884 | 4.0 | % | |||||||||
Provision for loan losses | - | - | 0.0 | % | - | 1,050 | -100.0 | % | |||||||||
Noninterest income | 3,713 | 6,589 | -43.6 | % | 18,231 | 30,697 | -40.6 | % | |||||||||
Noninterest expense | 10,269 | 11,567 | -11.2 | % | 42,314 | 44,808 | -5.6 | % | |||||||||
Net income | 3,533 | 3,332 | 6.0 | % | 12,521 | 18,277 | -31.5 | % | |||||||||
Earnings per diluted share | 0.50 | 0.49 | 2.0 | % | 1.77 | 2.56 | -30.9 | % | |||||||||
Return on average assets | 1.08 | % | 0.99 | % | 9.1 | % | 0.95 | % | 1.38 | % | -31.2 | % | |||||
Return on average equity | 12.17 | % | 9.21 | % | 32.1 | % | 9.86 | % | 12.67 | % | -22.2 | % | |||||
“In the fourth quarter of 2022 loan growth was strong with balances growing
RESULTS OF OPERATIONS
Consolidated Revenue
Total operating revenue, consisting of net interest income and noninterest income, was up 1.0% from the linked quarter but down 6.7 percent from the fourth quarter of 2021. Operating revenue was negatively impacted by the decline in mortgage banking revenue.
- Net interest income was up 4.5 percent from the linked quarter and up 20.1 percent from the year ago quarter.
- Net interest margin on a fully taxable equivalent basis (FTE) was up from both the linked and year-ago quarters by 15 and 72 basis points, respectively, primarily from the shift in mix of our balance sheet with cash and securities reallocated to the loan portfolio. Net of PPP, net interest margin was higher by 86 basis points compared to the prior year.
- Noninterest income was down 8 percent from the linked quarter and 44 percent from the year ago quarter, respectively, due to lower mortgage volume and OMSR recapture.
Mortgage Loan Business
Mortgage loan originations for the fourth quarter of 2022 were
Net mortgage banking revenue, consisting of gains on the sale of mortgage loans and net loan servicing fees, was
Mortgage Banking | |||||||||||||||||||
($ in thousands) | Annual Growth | ||||||||||||||||||
Mortgage originations | $ | 51,219 | $ | 68,557 | $ | 95,454 | $ | 97,394 | $ | 126,611 | $ | (75,392 | ) | ||||||
Mortgage sales | 23,590 | 39,176 | 49,915 | 72,154 | 110,543 | (86,953 | ) | ||||||||||||
Mortgage servicing portfolio | 1,352,016 | 1,362,666 | 1,369,732 | 1,375,554 | 1,362,962 | (10,946 | ) | ||||||||||||
Mortgage servicing rights | 13,503 | 13,473 | 13,408 | 13,135 | 12,034 | 1,469 | |||||||||||||
Mortgage servicing revenue | |||||||||||||||||||
Loan servicing fees | 851 | 858 | 863 | 861 | 850 | 1 | |||||||||||||
OMSR amortization | (310 | ) | (396 | ) | (496 | ) | (547 | ) | (807 | ) | 497 | ||||||||
Net administrative fees | 541 | 462 | 367 | 314 | 43 | 498 | |||||||||||||
OMSR valuation adjustment | 86 | 65 | 239 | 890 | 581 | (495 | ) | ||||||||||||
Net loan servicing fees | 627 | 527 | 606 | 1,204 | 624 | 3 | |||||||||||||
Gain on sale of mortgages | 550 | 876 | 1,196 | 1,676 | 3,194 | (2,644 | ) | ||||||||||||
Mortgage banking revenue, net | $ | 1,177 | $ | 1,403 | $ | 1,802 | $ | 2,880 | $ | 3,818 | $ | (2,641 | ) | ||||||
Noninterest Income and Noninterest Expense
Noninterest income declined for the fourth quarter, from the linked quarter and year over year. Gain-on-sale yields on mortgage loans were down significantly from the prior year and the total sales were down nearly
For the fourth quarter of 2022, noninterest expense of
Noninterest Income / Noninterest Expense | |||||||||||||||||||
($ in thousands, except ratios) | Annual Growth | ||||||||||||||||||
Noninterest Income (NII) | $ | 3,713 | $ | 4,043 | $ | 4,673 | $ | 5,802 | $ | 6,589 | $ | (2,876 | ) | ||||||
NII / Total Revenue | 25.4 | % | 27.9 | % | 32.8 | % | 40.6 | % | 42.1 | % | -16.7 | % | |||||||
NII / Average Assets | 1.1 | % | 1.2 | % | 1.4 | % | 1.7 | % | 2.0 | % | -0.9 | % | |||||||
Total Revenue Growth | -6.7 | % | -13.2 | % | -9.1 | % | -46.9 | % | -13.7 | % | 7.0 | % | |||||||
Noninterest Expense (NIE) | $ | 10,269 | $ | 10,384 | $ | 10,802 | $ | 10,859 | $ | 11,567 | $ | (1,298 | ) | ||||||
Efficiency Ratio | 70.2 | % | 71.6 | % | 75.6 | % | 75.9 | % | 73.7 | % | -3.5 | % | |||||||
NIE / Average Assets | 3.1 | % | 3.2 | % | 3.3 | % | 3.2 | % | 3.5 | % | -0.4 | % | |||||||
Net Noninterest Expense/Avg. Assets | -2.0 | % | -2.0 | % | -1.9 | % | -1.5 | % | -1.5 | % | -0.5 | % | |||||||
Total Expense Growth | -11.2 | % | -7.7 | % | -2.5 | % | -0.5 | % | 8.3 | % | -19.5 | % | |||||||
Balance Sheet
Total assets as of
The investment portfolio of
Total loans held for investment were
Deposit balances of
Loan Balances | ||||||||||||||||||
($ in thousands, except ratios) | Annual Growth | |||||||||||||||||
Commercial | $ | 128,534 | $ | 128,565 | $ | 127,711 | $ | 124,857 | $ | 122,373 | $ | 6,161 | ||||||
% of Total | 13.4 | % | 13.9 | % | 14.3 | % | 14.7 | % | 14.9 | % | 5.0 | % | ||||||
Commercial RE | 412,636 | 404,710 | 404,260 | 400,101 | 381,387 | 31,249 | ||||||||||||
% of Total | 42.9 | % | 43.7 | % | 45.1 | % | 47.0 | % | 46.4 | % | 8.2 | % | ||||||
Agriculture | 64,388 | 60,522 | 60,586 | 55,741 | 57,473 | 6,915 | ||||||||||||
% of Total | 6.7 | % | 6.5 | % | 6.8 | % | 6.6 | % | 7.0 | % | 12.0 | % | ||||||
Residential RE | 291,512 | 267,135 | 241,614 | 214,015 | 206,324 | 85,188 | ||||||||||||
% of Total | 30.3 | % | 28.9 | % | 27.0 | % | 25.2 | % | 25.1 | % | 41.3 | % | ||||||
Consumer & Other | 65,005 | 64,317 | 61,440 | 55,957 | 55,157 | 9,848 | ||||||||||||
% of Total | 6.8 | % | 7.0 | % | 6.9 | % | 6.6 | % | 6.7 | % | 17.9 | % | ||||||
Total Loans | $ | 962,075 | $ | 925,249 | $ | 895,611 | $ | 850,671 | $ | 822,714 | $ | 139,361 | ||||||
Total Growth Percentage | 16.9 | % | ||||||||||||||||
Deposit Balances | ||||||||||||||||||
($ in thousands, except ratios) | Annual Growth | |||||||||||||||||
Non-Int DDA | $ | 256,799 | $ | 250,791 | $ | 239,676 | $ | 252,273 | $ | 247,044 | $ | 9,755 | ||||||
% of Total | 23.6 | % | 23.1 | % | 22.4 | % | 22.2 | % | 22.2 | % | 3.9 | % | ||||||
Interest DDA | 191,719 | 199,523 | 198,286 | 211,152 | 195,464 | (3,745 | ) | |||||||||||
% of Total | 17.6 | % | 18.4 | % | 18.5 | % | 18.6 | % | 17.6 | % | -1.9 | % | ||||||
Savings | 191,272 | 201,402 | 215,285 | 236,394 | 237,571 | (46,299 | ) | |||||||||||
% of Total | 17.6 | % | 18.5 | % | 20.1 | % | 20.8 | % | 21.3 | % | -19.5 | % | ||||||
Money Market | 255,995 | 258,975 | 276,274 | 289,699 | 276,462 | (20,467 | ) | |||||||||||
% of Total | 23.6 | % | 23.8 | % | 25.8 | % | 25.5 | % | 24.8 | % | -7.4 | % | ||||||
Time Deposits | 190,880 | 175,202 | 142,258 | 148,553 | 156,504 | 34,376 | ||||||||||||
% of Total | 17.6 | % | 16.1 | % | 13.3 | % | 13.1 | % | 14.1 | % | 22.0 | % | ||||||
Total Deposits | $ | 1,086,665 | $ | 1,085,893 | $ | 1,071,779 | $ | 1,138,071 | $ | 1,113,045 | $ | (26,380 | ) | |||||
Total Growth Percentage | -2.4 | % | ||||||||||||||||
Asset Quality
Nonperforming Assets | ||||||||||||||||||
($ in thousands, except ratios) | Annual Change | |||||||||||||||||
Commercial & Agriculture | $ | 114 | $ | 114 | $ | 140 | $ | 142 | $ | 143 | $ | (29 | ) | |||||
% of Total Com./Ag. loans | 0.06 | % | 0.06 | % | 0.07 | % | 0.08 | % | 0.08 | % | -20.3 | % | ||||||
Commercial RE | 210 | 223 | 359 | 544 | 554 | (344 | ) | |||||||||||
% of Total CRE loans | 0.05 | % | 0.06 | % | 0.09 | % | 0.14 | % | 0.15 | % | -62.1 | % | ||||||
Residential RE | 2,967 | 3,129 | 3,176 | 3,198 | 2,484 | 483 | ||||||||||||
% of Total Res. RE loans | 1.02 | % | 1.17 | % | 1.31 | % | 1.49 | % | 1.20 | % | 19.4 | % | ||||||
Consumer & Other | 391 | 280 | 323 | 409 | 471 | (80 | ) | |||||||||||
% of Total Con./Oth. loans | 0.60 | % | 0.44 | % | 0.53 | % | 0.73 | % | 0.85 | % | -17.0 | % | ||||||
Total Nonaccruing Loans | 3,682 | 3,746 | 3,998 | 4,293 | 3,652 | 30 | ||||||||||||
% of Total loans | 0.38 | % | 0.40 | % | 0.45 | % | 0.50 | % | 0.44 | % | 0.8 | % | ||||||
Accruing Restructured Loans | 654 | 668 | 683 | 762 | 725 | (71 | ) | |||||||||||
Total Change (%) | -9.8 | % | ||||||||||||||||
Total Nonaccruing & Restructured Loans | 4,336 | 4,414 | 4,681 | 5,055 | 4,377 | (41 | ) | |||||||||||
% of Total loans | 0.45 | % | 0.48 | % | 0.52 | % | 0.59 | % | 0.53 | % | -0.9 | % | ||||||
Foreclosed Assets and Other Assets | 777 | 756 | 730 | 527 | 2,104 | (1,327 | ) | |||||||||||
Total Change (%) | -63.1 | % | ||||||||||||||||
Total Nonperforming Assets | $ | 5,113 | $ | 5,170 | $ | 5,411 | $ | 5,582 | $ | 6,481 | $ | (1,368 | ) | |||||
% of Total assets | 0.38 | % | 0.40 | % | 0.42 | % | 0.42 | % | 0.49 | % | -21.1 | % | ||||||
Webcast and Conference Call
The Company will hold the fourth quarter 2022 earnings conference call and webcast on
About
Headquartered in
In
Forward-Looking Statements
Certain statements within this document, which are not statements of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties and actual results may differ materially from those predicted by the forward-looking statements. These risks and uncertainties include, but are not limited to, the duration and scope of the COVID-19 outbreak in
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with
Investor Contact Information: |
Chief Executive Officer [email protected] Chief Financial Officer [email protected] |
CONSOLIDATED BALANCE SHEETS - (Unaudited) | ||||||||||||||||||||
December | September | June | March | December | ||||||||||||||||
($ in thousands) | 2022 | 2022 | 2022 | 2022 | 2021 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 27,817 | $ | 27,934 | $ | 29,567 | $ | 130,003 | $ | 149,511 | ||||||||||
Interest bearing time deposits | 2,131 | 2,134 | 1,691 | 1,894 | 2,643 | |||||||||||||||
Available-for-sale securities | 238,780 | 243,233 | 266,162 | 265,311 | 263,259 | |||||||||||||||
Loans held for sale | 2,073 | 2,979 | 4,242 | 4,737 | 7,472 | |||||||||||||||
Loans, net of unearned income | 962,075 | 925,249 | 895,611 | 850,671 | 822,714 | |||||||||||||||
Allowance for loan losses | (13,818 | ) | (13,824 | ) | (13,801 | ) | (13,804 | ) | (13,805 | ) | ||||||||||
Premises and equipment, net | 22,829 | 22,842 | 23,122 | 23,039 | 23,212 | |||||||||||||||
6,326 | 5,230 | 5,303 | 5,303 | 5,303 | ||||||||||||||||
Foreclosed assets and other assets | 777 | 756 | 730 | 527 | 2,104 | |||||||||||||||
Interest receivable | 4,091 | 3,556 | 3,256 | 2,815 | 2,920 | |||||||||||||||
23,239 | 23,239 | 23,239 | 23,239 | 23,191 | ||||||||||||||||
Cash value of life insurance | 28,870 | 28,713 | 28,556 | 17,932 | 17,867 | |||||||||||||||
Mortgage servicing rights | 13,503 | 13,473 | 13,408 | 13,135 | 12,034 | |||||||||||||||
Other assets | 16,940 | 17,863 | 12,886 | 10,328 | 12,429 | |||||||||||||||
Total assets | $ | 1,335,633 | $ | 1,303,377 | $ | 1,293,972 | $ | 1,335,130 | $ | 1,330,854 | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Non interest bearing demand | $ | 256,799 | $ | 250,791 | $ | 239,676 | $ | 252,273 | $ | 247,044 | ||||||||||
Interest bearing demand | 191,719 | 199,523 | 198,286 | 211,152 | 195,464 | |||||||||||||||
Savings | 191,272 | 201,402 | 215,285 | 236,394 | 237,571 | |||||||||||||||
Money market | 255,995 | 258,975 | 276,274 | 289,699 | 276,462 | |||||||||||||||
Time deposits | 190,880 | 175,202 | 142,258 | 148,553 | 156,504 | |||||||||||||||
Total deposits | 1,086,665 | 1,085,893 | 1,071,779 | 1,138,071 | 1,113,045 | |||||||||||||||
Short-term borrowings | 14,923 | 19,754 | 30,772 | 19,035 | 15,320 | |||||||||||||||
60,000 | 35,000 | 25,000 | 5,500 | 5,500 | ||||||||||||||||
Trust preferred securities | 10,310 | 10,310 | 10,310 | 10,310 | 10,310 | |||||||||||||||
Subordinated debt net of issuance costs | 19,594 | 19,582 | 19,570 | 19,558 | 19,546 | |||||||||||||||
Interest payable | 769 | 623 | 307 | 536 | 299 | |||||||||||||||
Other liabilities | 24,944 | 17,587 | 11,678 | 9,483 | 21,905 | |||||||||||||||
Total liabilities | 1,217,205 | 1,188,749 | 1,169,416 | 1,202,493 | 1,185,925 | |||||||||||||||
Shareholders' Equity | ||||||||||||||||||||
Common stock | 61,319 | 61,319 | 61,319 | 61,319 | 54,463 | |||||||||||||||
Additional paid-in capital | 15,087 | 15,000 | 15,069 | 14,872 | 14,944 | |||||||||||||||
Retained earnings | 101,966 | 99,309 | 96,809 | 94,833 | 99,716 | |||||||||||||||
Accumulated other comprehensive income (loss) | (32,120 | ) | (33,426 | ) | (22,210 | ) | (13,659 | ) | (1,845 | ) | ||||||||||
(27,824 | ) | (27,574 | ) | (26,431 | ) | (24,728 | ) | (22,349 | ) | |||||||||||
Total shareholders' equity | 118,428 | 114,628 | 124,556 | 132,637 | 144,929 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 1,335,633 | $ | 1,303,377 | $ | 1,293,972 | $ | 1,335,130 | $ | 1,330,854 | ||||||||||
CONSOLIDATED STATEMENTS OF INCOME - (Unaudited) | ||||||||||||||||||||||||||||
($ in thousands, except per share & ratios) | At and for the Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||
December | September | June | March | December | December | December | ||||||||||||||||||||||
Interest income | 2022 | 2022 | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||
Taxable | $ | 11,222 | $ | 10,084 | $ | 8,880 | $ | 8,052 | $ | 8,889 | $ | 38,238 | $ | 37,959 | ||||||||||||||
Tax exempt | 109 | 92 | 73 | 61 | 59 | 335 | 206 | |||||||||||||||||||||
Securities | ||||||||||||||||||||||||||||
Taxable | 1,559 | 1,536 | 1,469 | 1,235 | 969 | 5,798 | 3,386 | |||||||||||||||||||||
Tax exempt | 47 | 52 | 52 | 47 | 86 | 198 | 353 | |||||||||||||||||||||
Total interest income | 12,937 | 11,764 | 10,474 | 9,395 | 10,003 | 44,569 | 41,904 | |||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||
Deposits | 1,440 | 852 | 567 | 618 | 640 | 3,477 | 3,129 | |||||||||||||||||||||
Repurchase agreements & other | 7 | 8 | 11 | 13 | 7 | 39 | 42 | |||||||||||||||||||||
258 | 180 | 38 | 39 | 41 | 515 | 188 | ||||||||||||||||||||||
Trust preferred securities | 138 | 99 | 71 | 53 | 49 | 361 | 199 | |||||||||||||||||||||
Subordinated debt | 194 | 195 | 194 | 195 | 188 | 778 | 462 | |||||||||||||||||||||
Total interest expense | 2,037 | 1,334 | 881 | 918 | 925 | 5,170 | 4,020 | |||||||||||||||||||||
Net interest income | 10,900 | 10,430 | 9,593 | 8,477 | 9,078 | 39,399 | 37,884 | |||||||||||||||||||||
Provision for loan losses | - | - | - | - | - | - | 1,050 | |||||||||||||||||||||
Net interest income after provision for loan losses | 10,900 | 10,430 | 9,593 | 8,477 | 9,078 | 39,399 | 36,834 | |||||||||||||||||||||
Noninterest income | ||||||||||||||||||||||||||||
Wealth management fees | 907 | 930 | 936 | 955 | 988 | 3,728 | 3,814 | |||||||||||||||||||||
Customer service fees | 880 | 844 | 860 | 794 | 827 | 3,378 | 3,217 | |||||||||||||||||||||
Gain on sale of mtg. loans & OMSR | 550 | 876 | 1,196 | 1,676 | 3,194 | 4,298 | 17,255 | |||||||||||||||||||||
Mortgage loan servicing fees, net | 627 | 527 | 606 | 1,204 | 624 | 2,964 | 2,940 | |||||||||||||||||||||
Gain on sale of non-mortgage loans | 105 | 125 | 167 | 169 | 44 | 566 | 158 | |||||||||||||||||||||
Title insurance revenue | 454 | 476 | 697 | 602 | 528 | 2,229 | 2,089 | |||||||||||||||||||||
Gain (loss) on sale of assets | 18 | (12 | ) | - | 55 | 1 | 61 | 2 | ||||||||||||||||||||
Other | 172 | 277 | 211 | 347 | 383 | 1,007 | 1,222 | |||||||||||||||||||||
Total noninterest income | 3,713 | 4,043 | 4,673 | 5,802 | 6,589 | 18,231 | 30,697 | |||||||||||||||||||||
Noninterest expense | ||||||||||||||||||||||||||||
Salaries and employee benefits | 5,677 | 5,858 | 6,418 | 6,189 | 6,648 | 24,142 | 26,838 | |||||||||||||||||||||
Net occupancy expense | 763 | 769 | 719 | 742 | 846 | 2,993 | 3,048 | |||||||||||||||||||||
Equipment expense | 1,017 | 918 | 827 | 854 | 899 | 3,616 | 3,281 | |||||||||||||||||||||
Data processing fees | 627 | 664 | 643 | 576 | 721 | 2,510 | 2,579 | |||||||||||||||||||||
Professional fees | 738 | 766 | 760 | 950 | 872 | 3,214 | 3,027 | |||||||||||||||||||||
Marketing expense | 258 | 200 | 222 | 231 | 228 | 911 | 784 | |||||||||||||||||||||
Telephone and communication expense | 124 | 134 | 105 | 111 | 148 | 474 | 581 | |||||||||||||||||||||
Postage and delivery expense | 121 | 75 | 110 | 116 | 106 | 422 | 414 | |||||||||||||||||||||
State, local and other taxes | 277 | 250 | 277 | 278 | 288 | 1,082 | 1,175 | |||||||||||||||||||||
Employee expense | 157 | 145 | 175 | 136 | 163 | 613 | 663 | |||||||||||||||||||||
Other expenses | 510 | 605 | 546 | 676 | 648 | 2,337 | 2,418 | |||||||||||||||||||||
Total noninterest expense | 10,269 | 10,384 | 10,802 | 10,859 | 11,567 | 42,314 | 44,808 | |||||||||||||||||||||
Income before income tax expense | 4,344 | 4,088 | 3,464 | 3,420 | 4,100 | 15,315 | 22,723 | |||||||||||||||||||||
Income tax expense | 811 | 746 | 630 | 607 | 768 | 2,794 | 4,446 | |||||||||||||||||||||
Net income | $ | 3,533 | $ | 3,342 | $ | 2,834 | $ | 2,813 | $ | 3,332 | $ | 12,521 | $ | 18,277 | ||||||||||||||
Common share data: | ||||||||||||||||||||||||||||
Basic earnings per common share | $ | 0.51 | $ | 0.48 | $ | 0.40 | $ | 0.40 | $ | 0.49 | $ | 1.79 | $ | 2.58 | ||||||||||||||
Diluted earnings per common share | $ | 0.50 | $ | 0.47 | $ | 0.40 | $ | 0.40 | $ | 0.49 | $ | 1.77 | $ | 2.56 | ||||||||||||||
Average shares outstanding (in thousands): | ||||||||||||||||||||||||||||
Basic: | 6,945 | 6,968 | 7,075 | 7,035 | 6,906 | 7,005 | 7,083 | |||||||||||||||||||||
Diluted: | 7,021 | 7,033 | 7,149 | 7,100 | 6,970 | 7,078 | 7,130 | |||||||||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited) | ||||||||||||||||||||||||||||
($ in thousands, except per share & ratios) | At and for the Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||
December | September | June | March | December | December | December | ||||||||||||||||||||||
SUMMARY OF OPERATIONS | 2022 | 2022 | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||
Net interest income | $ | 10,900 | $ | 10,430 | $ | 9,593 | $ | 8,477 | $ | 9,078 | $ | 39,399 | $ | 37,884 | ||||||||||||||
Tax-equivalent adjustment | 41 | 38 | 33 | 29 | 39 | 142 | 149 | |||||||||||||||||||||
Tax-equivalent net interest income | 10,941 | 10,468 | 9,626 | 8,506 | 9,117 | 39,541 | 38,033 | |||||||||||||||||||||
Provision for loan loss | - | - | - | - | - | - | 1,050 | |||||||||||||||||||||
Noninterest income | 3,713 | 4,043 | 4,673 | 5,802 | 6,589 | 18,231 | 30,697 | |||||||||||||||||||||
Total operating revenue | 14,613 | 14,473 | 14,266 | 14,279 | 15,667 | 57,630 | 68,581 | |||||||||||||||||||||
Noninterest expense | 10,269 | 10,384 | 10,802 | 10,859 | 11,567 | 42,314 | 44,808 | |||||||||||||||||||||
Pre-tax pre-provision income | 4,344 | 4,088 | 3,464 | 3,420 | 4,100 | 15,315 | 23,773 | |||||||||||||||||||||
Pretax income | 4,344 | 4,088 | 3,464 | 3,420 | 4,100 | 15,315 | 22,723 | |||||||||||||||||||||
Net income | 3,533 | 3,342 | 2,834 | 2,813 | 3,332 | 12,521 | 18,277 | |||||||||||||||||||||
PER SHARE INFORMATION: | ||||||||||||||||||||||||||||
Basic earnings per share (EPS) | 0.51 | 0.48 | 0.40 | 0.40 | 0.49 | 1.79 | 2.58 | |||||||||||||||||||||
Diluted earnings per share | 0.50 | 0.47 | 0.40 | 0.40 | 0.49 | 1.77 | 2.56 | |||||||||||||||||||||
Common dividends | 0.125 | 0.120 | 0.120 | 0.115 | 0.115 | 0.480 | 0.440 | |||||||||||||||||||||
Book value per common share | 17.08 | 16.49 | 17.75 | 18.65 | 21.05 | 17.08 | 21.05 | |||||||||||||||||||||
Tangible book value per common share (TBV) | 13.65 | 13.07 | 14.36 | 15.31 | 17.60 | 13.65 | 17.60 | |||||||||||||||||||||
Market price per common share | 16.95 | 16.85 | 17.26 | 19.91 | 18.69 | 16.95 | 18.69 | |||||||||||||||||||||
Market price to TBV | 124.2 | % | 128.9 | % | 120.2 | % | 130.1 | % | 106.2 | % | 124.2 | % | 106.2 | % | ||||||||||||||
Market price to trailing 12 month EPS | 9.6 | 9.6 | 9.3 | 10.0 | 7.7 | 9.6 | 7.7 | |||||||||||||||||||||
PERFORMANCE RATIOS: | ||||||||||||||||||||||||||||
Return on average assets (ROAA) | 1.08 | % | 1.03 | % | 0.87 | % | 0.83 | % | 0.99 | % | 0.95 | % | 1.38 | % | ||||||||||||||
Pre-tax pre-provision ROAA | 1.32 | % | 1.26 | % | 1.06 | % | 1.01 | % | 1.22 | % | 1.25 | % | 1.91 | % | ||||||||||||||
Return on average equity | 12.17 | % | 10.89 | % | 8.89 | % | 8.08 | % | 9.21 | % | 9.86 | % | 12.67 | % | ||||||||||||||
Return on average tangible equity | 15.30 | % | 13.51 | % | 10.93 | % | 9.75 | % | 10.92 | % | 12.14 | % | 15.04 | % | ||||||||||||||
Efficiency ratio | 70.16 | % | 71.63 | % | 75.60 | % | 75.93 | % | 73.72 | % | 73.31 | % | 65.23 | % | ||||||||||||||
Earning asset yield | 4.27 | % | 3.89 | % | 3.45 | % | 2.96 | % | 3.17 | % | 3.63 | % | 3.37 | % | ||||||||||||||
Cost of interest bearing liabilities | 0.90 | % | 0.58 | % | 0.39 | % | 0.39 | % | 0.40 | % | 0.56 | % | 0.45 | % | ||||||||||||||
Net interest margin | 3.60 | % | 3.45 | % | 3.15 | % | 2.67 | % | 2.87 | % | 3.21 | % | 3.05 | % | ||||||||||||||
Tax equivalent effect | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.02 | % | 0.01 | % | 0.01 | % | ||||||||||||||
Net interest margin, tax equivalent | 3.61 | % | 3.46 | % | 3.16 | % | 2.68 | % | 2.89 | % | 3.22 | % | 3.06 | % | ||||||||||||||
Non interest income/Average assets | 1.13 | % | 1.24 | % | 1.43 | % | 1.72 | % | 1.96 | % | 1.38 | % | 2.32 | % | ||||||||||||||
Non interest expense/Average assets | 3.13 | % | 3.19 | % | 3.31 | % | 3.22 | % | 3.45 | % | 3.21 | % | 3.39 | % | ||||||||||||||
Net noninterest expense/Average assets | -2.00 | % | -1.95 | % | -1.88 | % | -1.50 | % | -1.48 | % | -1.83 | % | -1.07 | % | ||||||||||||||
ASSET QUALITY RATIOS: | ||||||||||||||||||||||||||||
Gross charge-offs | 7 | 9 | 9 | 9 | 34 | 34 | 136 | |||||||||||||||||||||
Recoveries | 1 | 32 | 6 | 8 | 27 | 47 | 317 | |||||||||||||||||||||
Net charge-offs | 6 | (23 | ) | 3 | 1 | 7 | (13 | ) | (181 | ) | ||||||||||||||||||
Nonaccruing loans/Total loans | 0.38 | % | 0.40 | % | 0.45 | % | 0.50 | % | 0.44 | % | 0.38 | % | 0.44 | % | ||||||||||||||
Nonperforming loans/Total loans | 0.45 | % | 0.48 | % | 0.52 | % | 0.59 | % | 0.53 | % | 0.45 | % | 0.53 | % | ||||||||||||||
Nonperforming assets/Loans & OREO | 0.53 | % | 0.56 | % | 0.60 | % | 0.66 | % | 0.79 | % | 0.53 | % | 0.79 | % | ||||||||||||||
Nonperforming assets/Total assets | 0.38 | % | 0.40 | % | 0.42 | % | 0.42 | % | 0.49 | % | 0.38 | % | 0.49 | % | ||||||||||||||
Allowance for loan loss/Nonperforming loans | 318.68 | % | 313.26 | % | 294.83 | % | 273.08 | % | 315.40 | % | 318.68 | % | 315.40 | % | ||||||||||||||
Allowance for loan loss/Total loans | 1.44 | % | 1.49 | % | 1.54 | % | 1.62 | % | 1.68 | % | 1.44 | % | 1.68 | % | ||||||||||||||
Net loan charge-offs/Average loans (ann.) | 0.00 | % | (0.01 | %) | 0.00 | % | 0.00 | % | 0.00 | % | (0.00 | %) | (0.02 | %) | ||||||||||||||
CAPITAL & LIQUIDITY RATIOS: | ||||||||||||||||||||||||||||
Loans/ Deposits | 88.53 | % | 85.21 | % | 83.56 | % | 74.75 | % | 73.92 | % | 88.53 | % | 73.92 | % | ||||||||||||||
Equity/ Assets | 8.87 | % | 8.79 | % | 9.63 | % | 9.93 | % | 10.89 | % | 8.87 | % | 10.89 | % | ||||||||||||||
Tangible equity/Tangible assets | 7.22 | % | 7.10 | % | 7.93 | % | 8.30 | % | 9.27 | % | 7.22 | % | 9.27 | % | ||||||||||||||
Common equity tier 1 ratio (Bank) | 13.42 | % | 13.23 | % | 13.21 | % | 13.71 | % | 13.94 | % | 13.63 | % | 13.94 | % | ||||||||||||||
END OF PERIOD BALANCES | ||||||||||||||||||||||||||||
Total assets | 1,335,633 | 1,303,377 | 1,293,972 | 1,335,130 | 1,330,854 | 1,335,633 | 1,330,854 | |||||||||||||||||||||
Total loans | 962,075 | 925,249 | 895,611 | 850,671 | 822,714 | 962,075 | 822,714 | |||||||||||||||||||||
Deposits | 1,086,665 | 1,085,893 | 1,071,779 | 1,138,071 | 1,113,045 | 1,086,665 | 1,113,045 | |||||||||||||||||||||
Stockholders equity | 118,428 | 114,628 | 124,556 | 132,637 | 144,929 | 118,428 | 144,929 | |||||||||||||||||||||
23,753 | 23,770 | 23,787 | 23,804 | 23,774 | 23,753 | 23,774 | ||||||||||||||||||||||
Tangible equity | 94,675 | 90,858 | 100,769 | 108,833 | 121,155 | 94,675 | 121,155 | |||||||||||||||||||||
Mortgage servicing portfolio | 1,352,016 | 1,362,666 | 1,369,732 | 1,375,554 | 1,362,962 | 1,352,016 | 1,362,962 | |||||||||||||||||||||
Wealth/Brokerage assets under care | 507,093 | 480,947 | 500,487 | 560,698 | 618,279 | 507,093 | 618,279 | |||||||||||||||||||||
Total assets under care | 3,194,742 | 3,146,990 | 3,164,191 | 3,271,382 | 3,312,095 | 3,194,742 | 3,312,095 | |||||||||||||||||||||
Full-time equivalent employees | 268 | 271 | 267 | 256 | 269 | 268 | 269 | |||||||||||||||||||||
Period end common shares outstanding | 6,935 | 6,950 | 7,017 | 7,111 | 6,884 | 6,935 | 6,884 | |||||||||||||||||||||
Market capitalization (all) | 117,556 | 117,113 | 121,105 | 141,575 | 128,668 | 117,556 | 128,668 | |||||||||||||||||||||
AVERAGE BALANCES | ||||||||||||||||||||||||||||
Total assets | 1,314,419 | 1,302,297 | 1,305,815 | 1,350,982 | 1,342,202 | 1,318,781 | 1,322,253 | |||||||||||||||||||||
Total earning assets | 1,211,674 | 1,209,958 | 1,216,124 | 1,270,218 | 1,263,431 | 1,226,771 | 1,243,093 | |||||||||||||||||||||
Total loans | 937,898 | 909,909 | 870,439 | 832,825 | 845,078 | 888,116 | 854,521 | |||||||||||||||||||||
Deposits | 1,094,491 | 1,085,821 | 1,108,890 | 1,134,234 | 1,123,843 | 1,105,571 | 1,106,122 | |||||||||||||||||||||
Stockholders equity | 116,114 | 122,738 | 127,519 | 139,214 | 144,749 | 126,963 | 144,223 | |||||||||||||||||||||
23,761 | 23,778 | 23,796 | 23,801 | 22,701 | 23,783 | 22,718 | ||||||||||||||||||||||
Tangible equity | 92,353 | 98,960 | 103,723 | 115,413 | 122,048 | 103,180 | 121,505 | |||||||||||||||||||||
Average basic shares outstanding | 6,945 | 6,968 | 7,075 | 7,035 | 6,906 | 7,005 | 7,083 | |||||||||||||||||||||
Average diluted shares outstanding | 7,021 | 7,033 | 7,149 | 7,100 | 6,970 | 7,078 | 7,130 | |||||||||||||||||||||
Rate Volume Analysis - (Unaudited) | ||||||||||||||||||
For the Three and Twelve Months Ended |
||||||||||||||||||
($ in thousands) | Three Months Ended |
Three Months Ended |
||||||||||||||||
Average | Average | Average | Average | |||||||||||||||
Assets | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||
Taxable securities/cash | $ | 265,711 | $ | 1,559 | 2.35 | % | $ | 410,489 | $ | 969 | 0.94 | % | ||||||
Nontaxable securities | 8,065 | 47 | 2.33 | % | 7,864 | 86 | 4.37 | % | ||||||||||
Loans, net | 937,898 | 11,331 | 4.83 | % | 845,078 | 8,948 | 4.24 | % | ||||||||||
Total earning assets | 1,211,674 | 12,937 | 4.27 | % | 1,263,431 | 10,003 | 3.17 | % | ||||||||||
Cash and due from banks | 7,052 | 6,489 | ||||||||||||||||
Allowance for loan losses | (13,820 | ) | (13,795 | ) | ||||||||||||||
Premises and equipment | 23,757 | 25,505 | ||||||||||||||||
Other assets | 85,756 | 60,572 | ||||||||||||||||
Total assets | $ | 1,314,419 | $ | 1,342,202 | ||||||||||||||
Liabilities | ||||||||||||||||||
Savings, MMDA and interest bearing demand | $ | 646,498 | $ | 965 | 0.60 | % | $ | 704,534 | $ | 400 | 0.23 | % | ||||||
Time deposits | 180,678 | 475 | 1.05 | % | 157,888 | 240 | 0.61 | % | ||||||||||
Repurchase agreements & other | 18,058 | 7 | 0.16 | % | 18,910 | 7 | 0.15 | % | ||||||||||
Advances from |
29,078 | 258 | 3.55 | % | 5,500 | 41 | 2.98 | % | ||||||||||
Trust preferred securities | 10,310 | 138 | 5.35 | % | 10,310 | 49 | 1.90 | % | ||||||||||
Subordinated debt | 19,588 | 194 | 3.96 | % | 19,539 | 188 | 3.85 | % | ||||||||||
Total interest bearing liabilities | 904,210 | 2,037 | 0.90 | % | 916,681 | 925 | 0.40 | % | ||||||||||
Non interest bearing demand | 267,315 | - | 261,421 | - | ||||||||||||||
Total funding | 1,171,525 | 0.70 | % | 1,178,102 | 0.31 | % | ||||||||||||
Other liabilities | 26,780 | 19,351 | ||||||||||||||||
Total liabilities | 1,198,305 | 1,197,453 | ||||||||||||||||
Equity | 116,114 | 144,749 | ||||||||||||||||
Total liabilities and equity | $ | 1,314,419 | $ | 1,342,202 | ||||||||||||||
Net interest income | $ | 10,900 | $ | 9,078 | ||||||||||||||
Net interest income as a percent of average interest-earning assets - GAAP measure | 3.60 | % | 2.87 | % | ||||||||||||||
Net interest income as a percent of average interest-earning assets - non GAAP | 3.61 | % | 2.89 | % | ||||||||||||||
- Computed on a fully tax equivalent (FTE) basis | ||||||||||||||||||
Twelve Months Ended |
Twelve Months Ended |
|||||||||||||||||
Average | Average | Average | Average | |||||||||||||||
Assets | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||
Taxable securities/cash | $ | 330,549 | $ | 5,798 | 1.75 | % | $ | 380,770 | $ | 3,386 | 0.89 | % | ||||||
Nontaxable securities | 8,106 | 198 | 2.44 | % | 7,802 | 353 | 4.52 | % | ||||||||||
Loans, net | 888,116 | 38,573 | 4.34 | % | 854,521 | 38,165 | 4.47 | % | ||||||||||
Total earning assets | 1,226,771 | 44,569 | 3.63 | % | 1,243,093 | 41,904 | 3.37 | % | ||||||||||
Cash and due from banks | 7,296 | 7,290 | ||||||||||||||||
Allowance for loan losses | (13,808 | ) | (13,422 | ) | ||||||||||||||
Premises and equipment | 24,137 | 24,710 | ||||||||||||||||
Other assets | 74,385 | 60,582 | ||||||||||||||||
Total assets | $ | 1,318,781 | $ | 1,322,253 | ||||||||||||||
Liabilities | ||||||||||||||||||
Savings, MMDA and interest bearing demand | $ | 693,271 | $ | 2,258 | 0.33 | % | $ | 672,296 | $ | 1,813 | 0.27 | % | ||||||
Time deposits | 159,401 | 1,219 | 0.76 | % | 177,918 | 1,316 | 0.74 | % | ||||||||||
Repurchase agreements & Other | 20,481 | 39 | 0.19 | % | 22,821 | 42 | 0.18 | % | ||||||||||
Advances from |
16,420 | 515 | 3.14 | % | 6,507 | 188 | 2.89 | % | ||||||||||
Trust preferred securities | 10,310 | 361 | 3.50 | % | 10,310 | 199 | 1.93 | % | ||||||||||
Subordinated debt | 19,570 | 778 | 3.98 | % | 12,057 | 462 | 3.83 | % | ||||||||||
Total interest bearing liabilities | 919,453 | 5,170 | 0.56 | % | 901,909 | 4,020 | 0.45 | % | ||||||||||
Non interest bearing demand | 252,899 | 0.44 | % | 255,908 | 0.35 | % | ||||||||||||
Total funding | 1,172,352 | 1,157,817 | ||||||||||||||||
Other liabilities | 19,466 | 20,213 | ||||||||||||||||
Total liabilities | 1,191,818 | 1,178,030 | ||||||||||||||||
Equity | 126,963 | 144,223 | ||||||||||||||||
Total liabilities and equity | $ | 1,318,781 | $ | 1,322,253 | ||||||||||||||
Net interest income | $ | 39,399 | $ | 37,884 | ||||||||||||||
Net interest income as a percent of average interest-earning assets - GAAP measure | 3.21 | % | 3.05 | % | ||||||||||||||
Net interest income as a percent of average interest-earning assets - non GAAP | 3.22 | % | 3.06 | % | ||||||||||||||
- Computed on a fully tax equivalent (FTE) basis | ||||||||||||||||||
Non-GAAP reconciliation | Three Months Ended | Twelve Months Ended | ||||||||||||||
($ in thousands, except per share & ratios) | ||||||||||||||||
Total Operating Revenue | $ | 14,613 | $ | 15,667 | $ | 57,630 | $ | 68,581 | ||||||||
Adjustment to (deduct)/add OMSR recapture/impairment * | (86 | ) | (581 | ) | (1,279 | ) | (3,436 | ) | ||||||||
Adjusted Total Operating Revenue | 14,527 | 15,086 | 56,351 | 65,145 | ||||||||||||
Income before Income Taxes | 4,344 | 4,100 | 15,315 | 22,723 | ||||||||||||
Adjustment for OMSR * | (86 | ) | (581 | ) | (1,279 | ) | (3,436 | ) | ||||||||
Adjusted Income before Income Taxes | 4,258 | 3,519 | 14,036 | 19,287 | ||||||||||||
Provision for Income Taxes | 811 | 768 | 2,794 | 4,446 | ||||||||||||
Adjustment for OMSR ** | (18 | ) | (122 | ) | (269 | ) | (722 | ) | ||||||||
Adjusted Provision for Income Taxes | 793 | 646 | 2,525 | 3,725 | ||||||||||||
Net Income | 3,533 | 3,332 | 12,521 | 18,277 | ||||||||||||
Adjustment for OMSR * | (68 | ) | (459 | ) | (1,010 | ) | (2,714 | ) | ||||||||
Adjusted Net Income | 3,465 | 2,873 | 11,511 | 15,563 | ||||||||||||
Diluted Earnings per Share | 0.50 | 0.49 | 1.77 | 2.56 | ||||||||||||
Adjustment for OMSR * | (0.01 | ) | (0.07 | ) | (0.14 | ) | (0.38 | ) | ||||||||
Adjusted Diluted Earnings per Share | $ | 0.49 | $ | 0.42 | $ | 1.63 | $ | 2.18 | ||||||||
Return on Average Assets | 1.08 | % | 0.99 | % | 0.95 | % | 1.38 | % | ||||||||
Adjustment for OMSR * | -0.02 | % | -0.14 | % | -0.08 | % | -0.21 | % | ||||||||
Adjusted Return on Average Assets | 1.05 | % | 0.86 | % | 0.87 | % | 1.18 | % | ||||||||
*valuation adjustment to the Company's mortgage servicing rights | ||||||||||||||||
**tax effect is calculated using a 21% statutory federal corporate income tax rate | ||||||||||||||||
Source:
Enact Releases 2023 Environmental, Social, and Governance (ESG) Roadmap
Arthur J. Gallagher & Co. Announces Fourth Quarter and Full Year 2022 Financial Results
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