04/26/2022 | Press release | Distributed by Public on 04/26/2022 06:24
|
• |
Return on average assets and return on average equity of 1.54% and 19.38%, respectively;
|
|
• |
An increase in net interest income of 9.0% over the first quarter of 2021;
|
|
• |
Loan net growth of $99.0 million (or 13.8% annualized);
|
|
• |
Deposit net growth of $88.4 million (or 8.7% annualized);
|
|
• |
Continued strong asset quality metrics as evidenced by low loan charge-offs during the quarter as well as a low level of non-performing loans and non-performing assets; and
|
|
• |
The payment of a 22 cent per share dividend on common stock on February 15, 2022.
|
|
• |
Service charges on deposits was $3.0 million and $1.9 million in the first quarter of 2022 and 2021, respectively.
|
|
• |
Net gains (losses) on sale of securities was $0.1 million in the first quarter of 2022 compared to $1.4 million in the first quarter of 2021.
|
|
• |
Net gains on mortgage loans was $0.8 million in the first quarter of 2022 compared to $12.8 million in the first quarter of 2021.
|
|
• |
A change in the fair value due to price of capitalized mortgage loan servicing rights (the "MSR Change") of a positive $8.5 million ($0.31 per diluted share, after taxes) as compared to a positive MSR change of $4.6 million ($0.17 per diluted share, after taxes) for the first quarters of 2022 and 2021, respectively.
|
|
• |
The provision for credit losses was a credit of $1.6 million in the first quarter of 2022 compared to a credit of $0.5 million in the first quarter of 2021.
|
|
• |
Compensation and employee benefits was $20.1 million in the first quarter of 2022 compared to $18.5 million in the first quarter of 2021.
|
Three months ended
|
||||||||
3/31/2022
|
3/31/2021
|
|||||||
(In thousands)
|
||||||||
Mortgage loan servicing, net:
|
||||||||
Revenue, net
|
$
|
2,083
|
$
|
1,910
|
||||
Fair value change due to price
|
8,452
|
4,640
|
||||||
Fair value change due to pay-downs
|
(894
|
)
|
(1,383
|
)
|
||||
Total
|
$
|
9,641
|
$
|
5,167
|
Loan Type
|
3/31/2022
|
12/31/2021
|
3/31/2021
|
|||||||||
(Dollars in thousands)
|
||||||||||||
Commercial
|
$
|
59
|
$
|
62
|
$
|
1,373
|
||||||
Mortgage
|
5,166
|
4,914
|
5,741
|
|||||||||
Installment
|
668
|
569
|
434
|
|||||||||
Subtotal
|
5,893
|
5,545
|
7,548
|
|||||||||
Less - government guaranteed loans
|
859
|
435
|
459
|
|||||||||
Total non-performing loans
|
$
|
5,034
|
$
|
5,110
|
$
|
7,089
|
||||||
Ratio of non-performing loans to total portfolio loans
|
0.17
|
%
|
0.18
|
%
|
0.25
|
%
|
||||||
Ratio of non-performing assets to total assets
|
0.11
|
%
|
0.11
|
%
|
0.17
|
%
|
||||||
Ratio of the allowance for credit losses to non-performing loans
|
906.38
|
%
|
924.70
|
%
|
659.54
|
%
|
(1) |
Excludes loans that are classified as "troubled debt restructured" that are still performing.
|
Regulatory Capital Ratios
|
3/31/2022
|
12/31/2021
|
Well
Capitalized
Minimum
|
||||||
Tier 1 capital to average total assets
|
8.56
|
%
|
8.57
|
%
|
5.00
|
%
|
|||
Tier 1 common equity to risk-weighted assets
|
11.49
|
%
|
11.80
|
%
|
6.50
|
%
|
|||
Tier 1 capital to risk-weighted assets
|
11.49
|
%
|
11.80
|
%
|
8.00
|
%
|
|||
Total capital to risk-weighted assets
|
12.71
|
%
|
13.05
|
%
|
10.00
|
%
|
March 31,
2022
|
December 31,
2021
|
|||||||
(unaudited)
|
||||||||
(In thousands, except share
|
||||||||
amounts)
|
||||||||
Assets
|
||||||||
Cash and due from banks
|
$
|
46,600
|
$
|
51,069
|
||||
Interest bearing deposits
|
63,221
|
58,404
|
||||||
Cash and Cash Equivalents
|
109,821
|
109,473
|
||||||
Securities available for sale
|
1,400,137
|
1,412,830
|
||||||
Federal Home Loan Bank and Federal Reserve Bank stock, at cost
|
17,653
|
18,427
|
||||||
Loans held for sale, carried at fair value
|
29,514
|
55,470
|
||||||
Loans held for sale, carried at lower of cost or fair value
|
-
|
34,811
|
||||||
Loans
|
||||||||
Commercial
|
1,257,601
|
1,203,581
|
||||||
Mortgage
|
1,170,059
|
1,139,659
|
||||||
Installment
|
576,405
|
561,805
|
||||||
Total Loans
|
3,004,065
|
2,905,045
|
||||||
Allowance for credit losses
|
(45,627
|
)
|
(47,252
|
)
|
||||
Net Loans
|
2,958,438
|
2,857,793
|
||||||
Other real estate and repossessed assets
|
438
|
245
|
||||||
Property and equipment, net
|
37,385
|
36,404
|
||||||
Bank-owned life insurance
|
54,984
|
55,279
|
||||||
Capitalized mortgage loan servicing rights, carried at fair value
|
35,933
|
26,232
|
||||||
Other intangibles
|
3,104
|
3,336
|
||||||
Goodwill
|
28,300
|
28,300
|
||||||
Accrued income and other assets
|
86,276
|
66,140
|
||||||
Total Assets
|
$
|
4,761,983
|
$
|
4,704,740
|
||||
Liabilities and Shareholders' Equity
|
||||||||
Deposits
|
||||||||
Non-interest bearing
|
$
|
1,318,377
|
$
|
1,321,601
|
||||
Savings and interest-bearing checking
|
1,972,462
|
1,897,487
|
||||||
Reciprocal
|
605,332
|
586,626
|
||||||
Time
|
306,382
|
308,438
|
||||||
Brokered time
|
2,945
|
2,938
|
||||||
Total Deposits
|
4,205,498
|
4,117,090
|
||||||
Other borrowings
|
30,006
|
30,009
|
||||||
Subordinated debt
|
39,376
|
39,357
|
||||||
Subordinated debentures
|
39,609
|
39,592
|
||||||
Accrued expenses and other liabilities
|
92,045
|
80,208
|
||||||
Total Liabilities
|
4,406,534
|
4,306,256
|
||||||
Shareholders' Equity
|
||||||||
Preferred stock, no par value, 200,000 shares authorized; none issued or outstanding Common stock, no par value, 500,000,000 shares authorized; issued and outstanding:
|
-
|
-
|
||||||
21,168,230 shares at March 31, 2022 and 21,171,036 shares at December 31, 2021
|
321,981
|
323,401
|
||||||
Retained earnings
|
87,882
|
74,582
|
||||||
Accumulated other comprehensive income (loss)
|
(54,414
|
)
|
501
|
|||||
Total Shareholders' Equity
|
355,449
|
398,484
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
4,761,983
|
$
|
4,704,740
|
Three Months Ended
|
||||||||||||
March 31,
2022
|
December 31,
2021
|
March 31,
2021
|
||||||||||
(unaudited)
|
||||||||||||
Interest Income
|
(In thousands, except per share amounts)
|
|||||||||||
Interest and fees on loans
|
$
|
28,418
|
$
|
30,316
|
$
|
28,105
|
||||||
Interest on securities available for sale
|
||||||||||||
Taxable
|
4,552
|
4,114
|
2,796
|
|||||||||
Tax-exempt
|
1,554
|
1,577
|
1,384
|
|||||||||
Other investments
|
217
|
217
|
217
|
|||||||||
Total Interest Income
|
34,741
|
36,224
|
32,502
|
|||||||||
Interest Expense
|
||||||||||||
Deposits
|
767
|
977
|
1,256
|
|||||||||
Other borrowings and subordinated debt and debentures
|
973
|
962
|
962
|
|||||||||
Total Interest Expense
|
1,740
|
1,939
|
2,218
|
|||||||||
Net Interest Income
|
33,001
|
34,285
|
30,284
|
|||||||||
Provision for credit losses
|
(1,573
|
)
|
630
|
(474
|
)
|
|||||||
Net Interest Income After Provision for Credit Losses
|
34,574
|
33,655
|
30,758
|
|||||||||
Non-interest Income
|
||||||||||||
Interchange income
|
3,082
|
3,306
|
3,049
|
|||||||||
Service charges on deposit accounts
|
2,957
|
2,992
|
1,916
|
|||||||||
Net gains (losses) on assets
|
||||||||||||
Mortgage loans
|
835
|
5,600
|
12,828
|
|||||||||
Securities available for sale
|
70
|
(10
|
)
|
1,416
|
||||||||
Mortgage loan servicing, net
|
9,641
|
1,269
|
5,167
|
|||||||||
Other
|
2,363
|
2,614
|
2,030
|
|||||||||
Total Non-interest Income
|
18,948
|
15,771
|
26,406
|
|||||||||
Non-interest Expense
|
||||||||||||
Compensation and employee benefits
|
20,130
|
19,905
|
18,522
|
|||||||||
Occupancy, net
|
2,543
|
2,216
|
2,343
|
|||||||||
Data processing
|
2,216
|
2,851
|
2,374
|
|||||||||
Furniture, fixtures and equipment
|
1,045
|
1,060
|
1,003
|
|||||||||
Interchange expense
|
1,011
|
1,083
|
948
|
|||||||||
Communications
|
757
|
739
|
881
|
|||||||||
Advertising
|
680
|
599
|
489
|
|||||||||
Loan and collection
|
559
|
819
|
759
|
|||||||||
FDIC deposit insurance
|
522
|
413
|
330
|
|||||||||
Legal and professional
|
493
|
534
|
499
|
|||||||||
Conversion related expenses
|
44
|
191
|
218
|
|||||||||
Net gains on other real estate and repossessed assets
|
(55
|
)
|
(28
|
)
|
(180
|
)
|
||||||
Costs (recoveries) related to unfunded lending commitments
|
(355
|
)
|
844
|
(32
|
)
|
|||||||
Other
|
1,860
|
2,728
|
1,867
|
|||||||||
Total Non-interest Expense
|
31,450
|
33,954
|
30,021
|
|||||||||
Income Before Income Tax
|
22,072
|
15,472
|
27,143
|
|||||||||
Income tax expense
|
4,105
|
2,964
|
5,106
|
|||||||||
Net Income
|
$
|
17,967
|
$
|
12,508
|
$
|
22,037
|
||||||
Net Income Per Common Share
|
||||||||||||
Basic
|
$
|
0.85
|
$
|
0.59
|
$
|
1.01
|
||||||
Diluted
|
$
|
0.84
|
$
|
0.58
|
$
|
1.00
|
March 31,
2022
|
December 31,
2021
|
September 30,
2021
|
June 30,
2021
|
March 31,
2021
|
||||||||||||||||
(unaudited)
|
||||||||||||||||||||
(Dollars in thousands except per share data)
|
||||||||||||||||||||
Three Months Ended
|
||||||||||||||||||||
Net interest income
|
$
|
33,001
|
$
|
34,285
|
$
|
33,803
|
$
|
31,393
|
$
|
30,284
|
||||||||||
Provision for credit losses
|
(1,573
|
)
|
630
|
(659
|
)
|
(1,425
|
)
|
(474
|
)
|
|||||||||||
Non-interest income
|
18,948
|
15,771
|
19,695
|
14,771
|
26,406
|
|||||||||||||||
Non-interest expense
|
31,450
|
33,954
|
34,512
|
32,536
|
30,021
|
|||||||||||||||
Income before income tax
|
22,072
|
15,472
|
19,645
|
15,053
|
27,143
|
|||||||||||||||
Income tax expense
|
4,105
|
2,964
|
3,683
|
2,665
|
5,106
|
|||||||||||||||
Net income
|
$
|
17,967
|
$
|
12,508
|
$
|
15,962
|
$
|
12,388
|
$
|
22,037
|
||||||||||
Basic earnings per share
|
$
|
0.85
|
$
|
0.59
|
$
|
0.74
|
$
|
0.57
|
$
|
1.01
|
||||||||||
Diluted earnings per share
|
0.84
|
0.58
|
0.73
|
0.56
|
1.00
|
|||||||||||||||
Cash dividend per share
|
0.22
|
0.21
|
0.21
|
0.21
|
0.21
|
|||||||||||||||
Average shares outstanding
|
21,191,860
|
21,256,367
|
21,515,669
|
21,749,654
|
21,825,937
|
|||||||||||||||
Average diluted shares outstanding
|
21,398,128
|
21,473,963
|
21,726,346
|
21,966,829
|
22,058,503
|
|||||||||||||||
Performance Ratios
|
||||||||||||||||||||
Return on average assets
|
1.54
|
%
|
1.07
|
%
|
1.40
|
%
|
1.12
|
%
|
2.10
|
%
|
||||||||||
Return on average equity
|
19.38
|
12.61
|
15.93
|
12.78
|
23.51
|
|||||||||||||||
Efficiency ratio (1)
|
59.62
|
66.68
|
63.47
|
69.24
|
53.48
|
|||||||||||||||
As a Percent of Average Interest-Earning Assets (1)
|
||||||||||||||||||||
Interest income
|
3.16
|
%
|
3.30
|
%
|
3.37
|
%
|
3.22
|
%
|
3.27
|
%
|
||||||||||
Interest expense
|
0.16
|
0.17
|
0.19
|
0.20
|
0.22
|
|||||||||||||||
Net interest income
|
3.00
|
3.13
|
3.18
|
3.02
|
3.05
|
|||||||||||||||
Average Balances
|
||||||||||||||||||||
Loans
|
$
|
2,980,098
|
$
|
2,957,985
|
$
|
2,903,700
|
$
|
2,859,544
|
$
|
2,834,012
|
||||||||||
Securities available for sale
|
1,407,225
|
1,367,038
|
1,317,382
|
1,274,556
|
1,093,618
|
|||||||||||||||
Total earning assets
|
4,492,757
|
4,433,400
|
4,296,662
|
4,223,570
|
4,047,952
|
|||||||||||||||
Total assets
|
4,721,205
|
4,654,491
|
4,513,774
|
4,434,760
|
4,254,294
|
|||||||||||||||
Deposits
|
4,158,528
|
4,069,901
|
3,934,937
|
3,879,715
|
3,698,811
|
|||||||||||||||
Interest bearing liabilities
|
2,950,337
|
2,863,057
|
2,740,444
|
2,674,425
|
2,589,102
|
|||||||||||||||
Shareholders' equity
|
376,010
|
393,477
|
397,542
|
388,780
|
380,111
|
|||||||||||||||
End of Period
|
||||||||||||||||||||
Capital
|
||||||||||||||||||||
Tangible common equity ratio
|
6.85
|
%
|
7.85
|
%
|
8.02
|
%
|
8.21
|
%
|
8.08
|
%
|
||||||||||
Average equity to average assets
|
7.96
|
8.45
|
8.81
|
8.77
|
8.93
|
|||||||||||||||
Common shareholders' equity per share of common stock
|
$
|
16.79
|
$
|
18.82
|
$
|
18.76
|
$
|
18.30
|
$
|
17.79
|
||||||||||
Tangible common equity per share of common stock
|
15.31
|
17.33
|
17.27
|
16.82
|
16.30
|
|||||||||||||||
Total shares outstanding
|
21,168,230
|
21,171,036
|
21,321,092
|
21,632,912
|
21,773,734
|
|||||||||||||||
Selected Balances
|
||||||||||||||||||||
Loans
|
$
|
3,004,065
|
$
|
2,905,045
|
$
|
2,883,978
|
$
|
2,814,559
|
$
|
2,784,224
|
||||||||||
Securities available for sale
|
1,400,137
|
1,412,830
|
1,348,378
|
1,330,660
|
1,247,280
|
|||||||||||||||
Total earning assets
|
4,514,590
|
4,484,987
|
4,405,189
|
4,246,410
|
4,209,017
|
|||||||||||||||
Total assets
|
4,761,983
|
4,704,740
|
4,622,340
|
4,461,272
|
4,426,440
|
|||||||||||||||
Deposits
|
4,205,498
|
4,117,090
|
4,012,068
|
3,862,466
|
3,858,575
|
|||||||||||||||
Interest bearing liabilities
|
2,956,736
|
2,865,090
|
2,784,554
|
2,633,747
|
2,626,280
|
|||||||||||||||
Shareholders' equity
|
355,449
|
398,484
|
400,031
|
395,974
|
387,329
|
(1) |
Presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.
|
Three Months Ended
March 31,
|
||||||||
2022
|
2021
|
|||||||
(Dollars in thousands)
|
||||||||
Net Interest Margin, Fully Taxable
|
||||||||
Equivalent ("FTE")
|
||||||||
Net interest income
|
$
|
33,001
|
$
|
30,284
|
||||
Add: taxable equivalent adjustment
|
482
|
404
|
||||||
Net interest income - taxable equivalent
|
$
|
33,483
|
$
|
30,688
|
||||
Net interest margin (GAAP) (1)
|
2.96
|
%
|
3.01
|
%
|
||||
Net interest margin (FTE) (1)
|
3.00
|
%
|
3.05
|
%
|
(1) |
Annualized.
|
March 31,
2022
|
December 31,
2021
|
September 30,
2021
|
June 30,
2021
|
March 31,
2021
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Common shareholders' equity
|
$
|
355,449
|
$
|
398,484
|
$
|
400,031
|
$
|
395,974
|
$
|
387,329
|
||||||||||
Less:
|
||||||||||||||||||||
Goodwill
|
28,300
|
28,300
|
28,300
|
28,300
|
28,300
|
|||||||||||||||
Other intangibles
|
3,104
|
3,336
|
3,579
|
3,821
|
4,063
|
|||||||||||||||
Tangible common equity
|
$
|
324,045
|
$
|
366,848
|
$
|
368,152
|
$
|
363,853
|
$
|
354,966
|
||||||||||
Total assets
|
$
|
4,761,983
|
$
|
4,704,740
|
$
|
4,622,340
|
$
|
4,461,272
|
$
|
4,426,440
|
||||||||||
Less:
|
||||||||||||||||||||
Goodwill
|
28,300
|
28,300
|
28,300
|
28,300
|
28,300
|
|||||||||||||||
Other intangibles
|
3,104
|
3,336
|
3,579
|
3,821
|
4,063
|
|||||||||||||||
Tangible assets
|
$
|
4,730,579
|
$
|
4,673,104
|
$
|
4,590,461
|
$
|
4,429,151
|
$
|
4,394,077
|
||||||||||
Common equity ratio
|
7.46
|
%
|
8.47
|
%
|
8.65
|
%
|
8.88
|
%
|
8.75
|
%
|
||||||||||
Tangible common equity ratio
|
6.85
|
%
|
7.85
|
%
|
8.02
|
%
|
8.21
|
%
|
8.08
|
%
|
||||||||||
Tangible Common Equity per Share of Common Stock:
|
||||||||||||||||||||
Common shareholders' equity
|
$
|
355,449
|
$
|
398,484
|
$
|
400,031
|
$
|
395,974
|
$
|
387,329
|
||||||||||
Tangible common equity
|
$
|
324,045
|
$
|
366,848
|
$
|
368,152
|
$
|
363,853
|
$
|
354,966
|
||||||||||
|
||||||||||||||||||||
Shares of common stock outstanding (in thousands)
|
21,168
|
21,171
|
21,321
|
21,633
|
21,774
|
|||||||||||||||
Common shareholders' equity per share of common stock
|
$
|
16.79
|
$
|
18.82
|
$
|
18.76
|
$
|
18.30
|
$
|
17.79
|
||||||||||
Tangible common equity per share of common stock
|
$
|
15.31
|
$
|
17.33
|
$
|
17.27
|
$
|
16.82
|
$
|
16.30
|