Suncrest Bank
07/27/2020 | Press release | Archived content
Suncrest Bank Reports Second Quarter Earnings. Maintains Strong Net Income. Deposits Increased by over 30%. Assisted 700 PPP Customers.
SACRAMENTO, Calif. and VISALIA, Calif., July 27, 2020 /PRNewswire/ -- Suncrest Bank (OTCQX: SBKK) today reported unaudited financial results for the second quarter of 2020.
"Despite the economic challenges brought about by the COVID-19 pandemic we maintained strong net income for the quarter of approximately $2.7 million or 22 cents per diluted share, on par with both the linked quarter and the same quarter last year," said Mr. Ciaran McMullan, President and CEO of Suncrest Bank.
"The bank continued to respond to these challenges by fully participating in the Paycheck Protection Program (PPP) assisting almost 700 customers to fund over $150 million in PPP loans, as well as by proactively working with impacted borrowers to allow short term payment deferrals, currently representing approximately 9% of total loans. In addition, we prudently increased our provision for potential loan losses by $1.2 million bringing our total allowance as a percentage of total non-acquired loans, excluding PPP loans, to 1.43%."
"Total deposits increased by $165 million during the quarter driven in part by approximately $45 million of as yet unused PPP loan funds. We also added a significant number of new depositors acquired through the PPP program, with approximately 180 or 26% of our PPP borrowers being new customers to the bank," McMullan concluded.
Second Quarter 2020 Highlights
- Net income of $2.69 million compared to $2.88 million for the linked quarter and $2.82 million for Q2 2019
- Diluted EPS of $0.22 compared to $0.23 for the linked quarter and $0.22 for Q2 2019
- Total deposits increased by $255.5 million or 32.2% over Q2 2019
- Cost of Funds declined to 29 basis points
- Total loans (excluding PPP loans) increased by $27.3 million or 4.21% over Q2 2019
- Return on average tangible assets of 0.93%
- Return on average tangible equity of 9.31%
- Efficiency ratio of 52.56%
- New loan originations1 of $35.3 million (excluding PPP loans)
- Tangible book value per share of $9.62, an increase of 57 cents during the quarter
- Tier 1 leverage ratio of 9.93%
Income Statement
Net income declined slightly over the linked quarter and the same quarter last year at $2.69 million compared to $2.88 million for the linked quarter and $2.82 million for the same quarter last year. The decline in net income over the linked quarter is primarily due to an increase in income taxes due to a tax credit recognized in Q1 2020 with the decline over Q2 2019 mostly driven by an increase in the provision for loan losses from $850,000 in Q2 2019 to $1.2 million in the current quarter.
Interest income declined slightly to $10.6 million versus $10.9 million for the linked and the second quarter of 2019 due to $421,000 in non-recurring income in the linked quarter and $652,000 in non-recurring income in the second quarter of 2019. Interest expense declined to $750,000 as compared to $1.1 million over the linked quarter due to a decline in our cost of funds of 25 basis points (bps), while it decreased by approximately $350,000 or 27 bps over the same quarter last year.
Since the second quarter of 2019 the Federal Reserve has cut its benchmark rate by 2.25% in response to a slowing economy and the emerging COVID-19 pandemic. As a result, the Prime rate decreased from 5.50% to 3.25% and the overnight Fed Funds rate declined to 0.25%. This dramatic change in the interest rate environment significantly impacted our Core4 Net Interest Margin (NIM). Core NIM declined over the linked quarter by 42 bps and by 73 bps over the same quarter last year, primarily due to the decrease in yields on earning assets.
Core NIM was also significantly impacted by the note rate of 1% on PPP loans originated during the quarter. Without PPP loans this quarter, our Core NIM would have been 3.78%, a decline of only 20 bps over the linked quarter.
Core net interest income increased over the linked quarter and same quarter last year by $586,000 or 6.3% and $753,000 or 8.3% respectively primarily due to a decline in the cost of funds. Our cost of funds improved by 25 bps during the quarter, declining to 29 bps overall.
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Non-recurring Income |
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|
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|
Period |
Net Income |
NIM |
Interest |
Income from |
Non- |
Core Net Interest |
Core Net |
Core |
Core Diluted EPS4 |
|
Q2 2020 |
$ 2,688,843 |
3.56% |
$ 6,663 |
$ (28,495) |
$ - |
$ 9,879,346 |
$ 2,704,221 |
3.56% |
$ 0.22 |
|
Q1 2020 |
$ 2,884,904 |
4.16% |
$ 283,739 |
$ 137,624 |
$ - |
$ 9,292,999 |
$ 2,588,096 |
3.98% |
$ 0.21 |
|
Q2 2019 |
$ 2,818,869 |
4.60% |
$ 9,338 |
$ 642,538 |
$ - |
$ 9,126,198 |
$ 2,358,869 |
4.29% |
$ 0.19 |
Noninterest income decreased over the linked quarter and the same quarter last year by approximately $130,000 and $114,000 respectively driven in part by a loss on sale of securities of $54,000 in the current quarter together with a decline in service charges. The decline in service charges was primarily a result of reduced NSF fees and certain account fees waived as an accommodation for customers due to the impact of COVID-19.
Total noninterest expense decreased over the linked quarter and the same quarter last year by approximately $212,000 and $60,000 respectively, reflecting our ongoing commitment to diligent cost management especially given the economic conditions. Our key cost management performance ratios all improved significantly during the quarter. Our efficiency ratio declined to 52.56% while our burden ratio and noninterest expense to average assets improved to 1.68% and 1.79% respectively.
Income taxes increased compared to the linked quarter as a result of a $350,000 one-time tax adjustment recorded in Q1 2020 related to net operating loss carryback provisions of the CARES Act.
Balance Sheet
Total assets at June 30, 2020 were $1.29 billion representing an increase of $240.4 million or 23.0% over the linked quarter, and a year over year increase of $342.8 million or 36.3%. The increase over the linked quarter and year over year, was primarily the result of an increase in PPP loans of $128.4 million and deposits of $164.6 million and $255.5 million, respectively.
Total deposits at June 30, 2020 were $1.049 billion, an increase of $164.6 million or 18.6% over the linked quarter driven by approximately $45 million of PPP loan funds remaining in deposit accounts together with normal cyclical deposit inflows for some of our largest agribusiness accounts. Additionally, we also saw growth in new deposit relationships during the quarter as a result of acquiring approximately 180 new customers through the PPP loan program.
Total deposits increased year over year by $255.5 million or 32.2% with the growth being in non-maturity deposits5 of $264.5 million or 37.4%. Over the same period, we allowed price sensitive certificate of deposit (CD) balances to decline by $9.0 million or 10.5%.
In order to encourage involvement in the Paycheck Protection Program, the Federal Reserve provided a liquidity facility to participating financial institutions, in the form of term financing backed by PPP loans. The PPP Liquidity Facility (PPPLF) carries an interest rate of 35 bps and at June 30, 2020 the bank had drawn $68.6 million on the facility.
Total loans at June 30, 2020 were $804.7 million, an increase of $124.8 million or 18.4% over the linked quarter. The largest increase being in PPP loans which totaled $128.4 million. Excluding PPP loans, total loans declined over the linked quarter by $3.6 million or 0.5%, while new loan commitments (excluding PPP loans) were also slightly lower than recent quarters. This is driven in part by reduced loan demand (due to borrowers taking a more cautious approach to new projects) but also reflects the fact that our loan officers were intensely focused on delivering the Paycheck Protection Program during the quarter.
Total loans (excluding PPP loans) increased by $27.3 million or 4.21% over Q2, 2019. The largest year over year increases have been in Non-Owner Occupied CRE which increased by $50.7 million or approximately 30% and Farmland which increased by $4.5 million or 3.3%.
Paycheck Protection Program Loans
Since the SBA began accepting applications for the PPP on April 3, 2020, the national response has been tremendous. Suncrest Bank fully participated in the program and experienced extraordinary demand for PPP loans. As of July 23, 2020, the bank had assisted almost 700 customers to fund $152.4 million in loans with $133.0 million being funded by the bank and $19.4 million funded via a number of partners including the California Statewide CDC who financed approximately $12 million. We expect to generate approximately $4.3 million in fee income through the program which will be earned over the expected life of the loans.
|
PPP Loans |
<$0.35M |
$0.35M to $2.0M |
>$2.0M |
Total |
|
Number through Suncrest Channel |
320 |
82 |
11 |
413 |
|
Total Value through Suncrest Channel |
$43.8M |
$57.2M |
$32.0M |
$133.0M |
|
Number through Partner Channels |
273 |
7 |
0 |
280 |
|
Total Value through Partner Channels |
$15.4M |
$4.0M |
0 |
$19.4M |
|
Total Number |
593 |
89 |
11 |
693 |
|
Total Value |
$59.2M |
$61.2M |
$32.0M |
$152.4M |
|
Estimated Fee Income |
$2.3M |
$1.7M |
$0.3M |
$4.3M |
Asset Quality
Non-performing assets remained at $4.4 million or 0.34% of total assets at June 30, 2020 compared to 0.43% at March 31, 2020.
Based on scenario analyses of potential COVID-19 impacts on the Bank's portfolio, and the downgrade of several lending relationships, we increased our total provision for loan losses by $1.2 million during the quarter. Our allowance as a percentage of total loans (excluding PPP loans and acquired loans that have been marked to fair value) was 1.43% at June 30, 2020 compared to 1.22% at March 31, 2020.
During the quarter we prudently decided to downgrade three lending relationships to classified-accrual status, per the table below. Two of these relationships are in the retail sector and the other is in the agribusiness sector. While all three continue to pay as agreed they have each experienced deterioration in their financial performance as a direct result of the negative economic impacts of the COVID-19 pandemic including; the permanent closure of a number of retail outlets, delays in the sale of business assets, and disruption in the international shipment and sale of certain agricultural products.
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Q2 2020 |
Q1 2020 |
Q4 2019 |
Q3 2019 |
|
Total Classified Loans (a) |
$14,399,989 |
$7,691,907 |
$8,513,450 |
$10,840,514 |
|
Classified - Accrual Loans |
$10,102,519 |
$3,394,437 |
$3,327,728 |
$3,734,612 |
|
Classified - Non-Accrual Loans |
$4,297,470 |
$4,297,470 |
$5,185,722 |
$7,105,902 |
|
Total Classified / Total Loans |
1.79% |
1.13% |
1.28% |
1.65% |
|
Total Classified / Total Loans (excluding PPP) |
2.13% |
1.13% |
1.28% |
1.65% |
|
|
|
|
(a) |
Includes classified accrual loans and non-accrual loans |
Initial Impacts of COVID-19
In late March and early April interagency regulatory guidance[6] was issued encouraging banks to work with borrowers financially impacted by COVID-19. Since then we have taken actions to help our borrowers mitigate the adverse impacts of the pandemic including short-term loan modifications such as payment deferrals of principal and/or interest. Per the table above, we have approved deferred payments for approximately 9% of our loan portfolio, primarily in the hotel and restaurant sectors.
|
Industry Sector |
Loans Modified |
6 Months P&I |
3 Months P&I |
6 Months IO |
Total Loans |
Percentage |
||||
|
Hotels |
$ 20,841,526 |
7 |
$ 20,730,846 |
6 |
$ 110,679 |
1 |
$ - |
0 |
$ 32,650,563 |
63.8% |
|
Non Owner Occupied (NOO) CRE - Retail |
$ 17,143,203 |
18 |
$ 8,836,750 |
10 |
$ 3,833,153 |
4 |
$ 4,473,300 |
4 |
$ 44,046,176 |
38.9% |
|
C&I / Owner Occupied CRE |
$ 13,799,181 |
44 |
$ 5,315,000 |
15 |
$ 6,295,657 |
17 |
$ 2,188,524 |
12 |
$131,010,367 |
10.5% |
|
NOO CRE-Other |
$ 12,334,971 |
6 |
$ - |
0 |
$ 1,734,898 |
4 |
$ 10,600,073 |
2 |
$146,420,270 |
8.4% |
|
Multi-Family |
$ 4,052,317 |
5 |
$ 928,732 |
2 |
$ - |
0 |
$ 3,123,586 |
3 |
$ 47,104,342 |
8.6% |
|
Restaurants |
$ 2,160,460 |
5 |
$ 1,646,261 |
4 |
$ - |
0 |
$ 514,198 |
1 |
$ 3,181,364 |
67.9% |
|
SFR Secured |
$ 435,003 |
2 |
$ 435,003 |
2 |
$ - |
0 |
$ - |
0 |
$ 41,099,878 |
1.1% |
|
Agribusiness |
$ 798,044 |
1 |
$ - |
0 |
$ 798,044 |
1 |
$ - |
0 |
$106,142,320 |
0.8% |
|
Total Payment Relief |
$ 71,564,705 |
88 |
$ 37,892,592 |
39 |
$ 12,772,431 |
27 |
$ 20,899,681 |
22 |
|
|
|
% of Total Portfolio |
8.9% |
4.9% |
4.7% |
2.2% |
1.6% |
1.5% |
2.6% |
1.2% |
|
|
|
% of Total Portfolio (excluding PPP) |
10.6% |
6.3% |
5.6% |
2.8% |
1.9% |
1.9% |
3.1% |
1.6% |
|
|
Capital
Suncrest Bank remained well capitalized at June 30, 2020. All of the bank's capital ratios are above minimum regulatory standards for "well capitalized" institutions.
At June 30, 2020 tangible book value per common share was $9.62 with common shares issued of 12,443,800 as of the same date. This compares to a tangible book value per common share of $9.05 at March 31, 2020.
About Suncrest Bank
Suncrest Bank, member FDIC, is locally owned and operated and offers a full range of commercial, small business and agribusiness loans, cash management services and personal deposit products throughout the Central Valley of California and the Greater Sacramento Region. It is regularly rated Five Stars by Bauer Financial as one of the nation's strongest financial institutions, and in 2017 and 2018 was named to the OTCQX® Best 50, a ranking of top performing companies traded on the OTCQX Best Market. It is a Preferred Lender with the Small Business Administration and its stock can be purchased on the open market, trading on the OTCQX under the ticker symbol SBKK. For all other information, visit www.suncrestbank.com
Forward Looking Statements
Except for the historical information in this news release, the matters described herein contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties include: the credit risks of lending activities, including changes in the level and trend of loan delinquencies and charge-offs, results of examinations by our banking regulators, our ability to maintain adequate levels of capital and liquidity, our ability to manage loan delinquency rates, our ability to price deposits to retain existing customers and achieve low-cost deposit growth, manage expenses and lower the efficiency ratio, expand or maintain the net interest margin, mitigate interest rate risk for changes in the interest rate environment, competitive pressures in the banking industry, access to available sources of credit to manage liquidity, the local and national economic environment, and other risks and uncertainties. Accordingly, undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this release. Suncrest Bank undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events. Investors are encouraged to read the Suncrest Bank annual reports which are available on our website.
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Suncrest Bank |
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Statements of Financial Condition |
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(Unaudited) |
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|
June 30, |
|
March 31, |
|
June 30, |
|
|
|
2020 |
|
2020 |
|
2019 |
|
ASSETS |
|
|
|
|
|
|
|
Cash and Due from Banks |
|
$ 13,228,364 |
|
$ 46,172,365 |
|
$ 29,654,947 |
|
Federal Funds Sold |
|
142,930,000 |
|
16,252,000 |
|
33,204,000 |
|
TOTAL CASH AND CASH EQUIVALENTS |
|
156,158,364 |
|
62,424,365 |
|
62,858,947 |
|
|
|
|
|
|
|
|
|
Investment Securities Available for Sale (AFS) |
|
256,315,062 |
|
237,736,303 |
|
163,188,023 |
|
Loans: |
|
|
|
|
|
|
|
Total Loans |
|
804,668,120 |
|
679,894,288 |
|
648,985,053 |
|
Allowance for Loan Losses |
|
(7,261,565) |
|
(6,061,137) |
|
(5,473,135) |
|
NET LOANS |
|
797,406,555 |
|
673,833,151 |
|
643,511,918 |
|
|
|
|
|
|
|
|
|
Federal Home Loan Bank and Other Bank Stock, at Cost |
|
5,862,141 |
|
5,471,141 |
|
5,472,491 |
|
Premises and Equipment |
|
6,465,203 |
|
6,618,505 |
|
9,883,776 |
|
Other Real Estate Owned |
|
129,644 |
|
130,195 |
|
313,720 |
|
Bank Owned Life Insurance |
|
8,607,800 |
|
8,552,906 |
|
8,385,617 |
|
Goodwill |
|
38,989,566 |
|
38,989,566 |
|
38,989,566 |
|
Core Deposit Intangible |
|
2,844,243 |
|
3,015,551 |
|
3,563,022 |
|
Accrued Interest and Other Assets |
|
13,738,199 |
|
9,334,350 |
|
7,525,226 |
|
|
|
$ 1,286,516,777 |
|
$ 1,046,106,033 |
|
$ 943,692,306 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
Noninterest-bearing Demand |
|
$ 417,386,498 |
|
$ 308,415,544 |
|
$ 327,285,111 |
|
Savings, NOW and Money Market Accounts |
|
555,112,706 |
|
494,175,027 |
|
380,735,858 |
|
Time Deposits |
|
76,411,399 |
|
81,681,922 |
|
85,400,880 |
|
TOTAL DEPOSITS |
|
1,048,910,603 |
|
884,272,493 |
|
793,421,849 |
|
Accrued Interest and Other Liabilities |
|
7,503,426 |
|
7,091,754 |
|
8,332,164 |
|
Other Borrowings |
|
68,559,008 |
|
- |
|
- |
|
TOTAL LIABILITIES |
|
1,124,973,037 |
|
891,364,247 |
|
801,754,013 |
|
|
|
|
|
|
|
|
|
Shareholders' Equity: |
|
|
|
|
|
|
|
Common Stock - No par value |
|
119,676,119 |
|
119,816,864 |
|
119,743,464 |
|
Additional Paid-in Capital |
|
3,201,835 |
|
3,061,394 |
|
2,711,909 |
|
Retained Earnings |
|
29,635,334 |
|
26,946,491 |
|
17,959,995 |
|
Accumulated Other Comprehensive Income (Loss) - Net |
|
|
|
|
|
|
|
Unrealized Gain (Loss) on Securities AFS |
|
9,030,452 |
|
4,917,037 |
|
1,522,925 |
|
TOTAL SHAREHOLDERS' EQUITY |
|
161,543,740 |
|
154,741,786 |
|
141,938,293 |
|
|
|
$ 1,286,516,777 |
|
$ 1,046,106,033 |
|
$ 943,692,306 |
|
Suncrest Bank |
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Statements of Income (Unaudited) |
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For the Three Months Ended |
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|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
|
|
2020 |
|
2020 |
|
2019 |
|
INTEREST INCOME |
|
|
|
|
|
|
|
Interest and Fees on Loans |
|
$ 9,043,344 |
|
$ 9,311,568 |
|
$ 9,426,583 |
|
Interest on Investment Securities |
|
1,533,208 |
|
1,285,695 |
|
1,114,847 |
|
Interest on Federal Funds Sold and Other |
|
31,418 |
|
262,378 |
|
339,046 |
|
TOTAL INTEREST INCOME |
|
10,607,970 |
|
10,859,641 |
|
10,880,476 |
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
Interest on Savings Deposits, NOW and Money Market Accounts |
|
492,277 |
|
907,748 |
|
859,741 |
|
Interest on Time Deposits |
|
221,256 |
|
237,531 |
|
242,661 |
|
Interest on Other Borrowings |
|
36,923 |
|
- |
|
- |
|
TOTAL INTEREST EXPENSE |
|
750,456 |
|
1,145,279 |
|
1,102,402 |
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME |
|
9,857,514 |
|
9,714,362 |
|
9,778,074 |
|
|
|
|
|
|
|
|
|
Provision for Loan Losses |
|
1,200,000 |
|
1,100,000 |
|
850,000 |
|
NET INTEREST INCOME AFTER |
|
|
|
|
|
|
|
PROVISION FOR LOAN LOSSES |
|
8,657,514 |
|
8,614,362 |
|
8,928,074 |
|
|
|
|
|
|
|
|
|
NONINTEREST INCOME |
|
|
|
|
|
|
|
Service Charges, Fees, and Other Income |
|
320,080 |
|
450,190 |
|
434,439 |
|
Gain on Sale of Loans |
|
- |
|
- |
|
- |
|
|
|
320,080 |
|
450,190 |
|
434,439 |
|
|
|
|
|
|
|
|
|
NONINTEREST EXPENSE |
|
|
|
|
|
|
|
Salaries and Employee Benefits |
|
2,910,755 |
|
3,041,167 |
|
2,820,144 |
|
Occupancy Expenses |
|
570,479 |
|
587,987 |
|
551,401 |
|
Other Expenses |
|
1,867,817 |
|
1,931,594 |
|
2,037,399 |
|
|
|
5,349,051 |
|
5,560,748 |
|
5,408,944 |
|
INCOME BEFORE INCOME TAXES |
|
3,628,543 |
|
3,503,804 |
|
3,953,569 |
|
Income Taxes |
|
939,700 |
|
618,900 |
|
1,134,700 |
|
NET INCOME |
|
$ 2,688,843 |
|
$ 2,884,904 |
|
$ 2,818,869 |
|
Suncrest Bank |
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Statements of Income (Unaudited) |
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|
For the Six Months Ended |
||||
|
|
|
|
|
|
|
|
|
June 30, |
|
June 30, |
|
|
|
2020 |
|
2019 |
|
INTEREST INCOME |
|
|
|
|
|
Interest and Fees on Loans |
|
$ 18,354,911 |
|
$ 18,367,393 |
|
Interest on Investment Securities |
|
2,818,901 |
|
2,104,338 |
|
Interest on Federal Funds Sold and Other |
|
293,797 |
|
696,821 |
|
TOTAL INTEREST INCOME |
|
21,467,609 |
|
21,168,552 |
|
|
|
|
|
|
|
INTEREST EXPENSE |
|
|
|
|
|
Interest on Savings Deposits, NOW and Money Market Accounts |
|
1,400,025 |
|
1,549,485 |
|
Interest on Time Deposits |
|
458,787 |
|
483,740 |
|
Interest on Other Borrowings |
|
36,923 |
|
- |
|
TOTAL INTEREST EXPENSE |
|
1,895,735 |
|
2,033,225 |
|
|
|
|
|
|
|
NET INTEREST INCOME |
|
19,571,874 |
|
19,135,327 |
|
|
|
|
|
|
|
Provision for Loan Losses |
|
2,300,000 |
|
1,100,000 |
|
NET INTEREST INCOME AFTER |
|
|
|
|
|
PROVISION FOR LOAN LOSSES |
|
17,271,874 |
|
18,035,327 |
|
|
|
|
|
|
|
NONINTEREST INCOME |
|
|
|
|
|
Service Charges, Fees, and Other Income |
|
770,270 |
|
854,151 |
|
Gain on Sale of Loans |
|
- |
|
- |
|
|
|
770,270 |
|
854,151 |
|
|
|
|
|
|
|
NONINTEREST EXPENSE |
|
|
|
|
|
Salaries and Employee Benefits |
|
5,951,922 |
|
5,814,684 |
|
Occupancy Expenses |
|
1,158,466 |
|
1,097,497 |
|
Other Expenses |
|
3,799,411 |
|
3,924,542 |
|
|
|
10,909,799 |
|
10,836,723 |
|
INCOME BEFORE INCOME TAXES |
|
7,132,345 |
|
8,052,755 |
|
Income Taxes |
|
1,558,600 |
|
2,245,500 |
|
NET INCOME |
|
$ 5,573,745 |
|
$ 5,807,255 |
|
Suncrest Bank |
|||||||
|
Selected Financial Data & Ratios (Unaudited) |
|||||||
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
|
|
|
2020 |
|
2020 |
|
2019 |
|
|
For the three months ended: |
|
|
|
|
|
|
|
|
Return on Average Assets(ROAA) |
|
0.90% |
|
1.13% |
|
1.21% |
|
|
ROAA excluding non-recurring items (1) (2) |
|
0.90% |
|
1.01% |
|
1.01% |
|
|
Return on Average Tangible Assets (2) |
|
0.93% |
|
1.18% |
|
1.27% |
|
|
Return on Average Equity(ROAE) |
|
6.83% |
|
7.59% |
|
8.07% |
|
|
ROAE excluding non-recurring items (1) (2) |
|
6.87% |
|
6.81% |
|
6.76% |
|
|
Return on Average Tangible Equity (2) |
|
9.31% |
|
10.50% |
|
11.62% |
|
|
Noninterest Expense (NIE) To Average Assets |
|
1.79% |
|
2.18% |
|
2.32% |
|
|
NIE to Average Assets excluding non-recurring items (1) (2) |
|
1.79% |
|
2.18% |
|
2.32% |
|
|
Efficiency Ratio |
|
52.56% |
|
54.71% |
|
52.96% |
|
|
Efficiency Ratio excluding non-recurring items (1) (2) |
|
52.44% |
|
57.07% |
|
56.58% |
|
|
Burden Ratio |
|
1.68% |
|
2.00% |
|
2.13% |
|
|
Net Interest Margin |
|
3.56% |
|
4.16% |
|
4.60% |
|
|
Core Net Interest Margin (1) (2) |
|
3.56% |
|
3.98% |
|
4.29% |
|
|
Cost of Funds |
|
0.29% |
|
0.54% |
|
0.56% |
|
|
Basic Earnings Per Share (EPS) |
|
$ 0.22 |
|
$ 0.23 |
|
$ 0.23 |
|
|
Diluted EPS |
|
$ 0.22 |
|
$ 0.23 |
|
$ 0.22 |
|
|
Diluted EPS excluding non-recurring items (1) (2) |
|
$ 0.22 |
|
$ 0.21 |
|
$ 0.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
|
|
2020 |
|
2019 |
|
|
|
|
For the six months ended: |
|
|
|
|
|
|
|
|
Return on Average Assets(ROAA) |
|
1.01% |
|
1.26% |
|
|
|
|
ROAA excluding non-recurring items (1) (2) |
|
0.96 |
|
1.16% |
|
|
|
|
Return on Average Tangible Assets (2) |
|
1.05% |
|
1.33% |
|
|
|
|
Return on Average Equity(ROAE) |
|
7.20% |
|
8.46% |
|
|
|
|
ROAE excluding non-recurring items (1) (2) |
|
6.84% |
|
7.74% |
|
|
|
|
Return on Average Tangible Equity (2) |
|
9.87% |
|
12.26% |
|
|
|
|
Noninterest Expense (NIE) To Average Assets |
|
1.97% |
|
2.36% |
|
|
|
|
NIE to Average Assets excluding non-recurring items (1) (2) |
|
1.97% |
|
2.36% |
|
|
|
|
Efficiency Ratio |
|
53.63% |
|
54.21% |
|
|
|
|
Efficiency Ratio excluding non-recurring items (1) (2) |
|
54.71% |
|
56.17% |
|
|
|
|
Burden Ratio |
|
1.83% |
|
2.17% |
|
|
|
|
Net Interest Margin |
|
3.83% |
|
4.59% |
|
|
|
|
Core Net Interest Margin (1) (2) |
|
3.75% |
|
4.42% |
|
|
|
|
Cost of Funds |
|
0.40% |
|
0.53% |
|
|
|
|
Basic Earnings Per Share (EPS) |
|
$ 0.45 |
|
$ 0.47 |
|
|
|
|
Diluted EPS |
|
$ 0.45 |
|
$ 0.46 |
|
|
|
|
Diluted EPS excluding non-recurring items (1) (2) |
|
$ 0.42 |
|
$ 0.42 |
|
|
|
|
|
|
|
(1) Non-recurring items include merger expenses, discount accretion on acquired loans and recovery of interest on non-accrual loans. |
|
|
(2) These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for analyses of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. |
|
|
Suncrest Bank |
||||||
|
Selected Financial Data & Ratios Continued (Unaudited) |
||||||
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
|
|
2020 |
|
2020 |
|
2019 |
|
At Period End: |
|
|
|
|
|
|
|
Loans to Deposits |
|
76.71% |
|
76.89% |
|
81.80% |
|
Average Loans to Average Deposits (QTD) |
|
76.80% |
|
76.61% |
|
81.53% |
|
Non-Performing Assets to Assets |
|
0.34% |
|
0.43% |
|
0.81% |
|
Outstanding Shares |
|
12,443,800 |
|
12,442,800 |
|
12,433,300 |
|
Tangible Book Value Per Share (2) |
|
$ 9.62 |
|
$ 9.05 |
|
$ 7.99 |
|
Tangible Book Value Per Share excluding Unrealized Gain on Securities (2) |
|
$ 8.90 |
|
$ 8.66 |
|
$ 7.87 |
|
Book Value Per Share |
|
$ 12.98 |
|
$ 12.44 |
|
$ 11.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory Capital Ratios |
|
|
|
|
|
|
|
Tier 1 Leverage (to average assets) |
|
9.93% |
|
11.00% |
|
10.87% |
|
Common Equity Tier 1 Capital (to risk weighted assets) |
|
12.68% |
|
13.80% |
|
13.08% |
|
Tier 1 Capital (to risk weighted assets) |
|
12.68% |
|
13.80% |
|
13.08% |
|
Total Capital (to risk weighted assets) |
|
13.52% |
|
14.59% |
|
13.73% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
|
|
2020 |
|
2020 |
|
2019 |
|
Loan Composition |
|
|
|
|
|
|
|
Commercial and Industrial: |
|
$ 48,655,792 |
|
$ 44,110,558 |
|
$ 59,366,842 |
|
Paycheck Protection Program: |
|
128,358,805 |
|
- |
|
- |
|
Loans to Finance Agricultural Production and Other Loans to Farmers: |
|
36,941,792 |
|
32,561,301 |
|
38,622,774 |
|
Loans Secured by Real Estate: |
|
|
|
|
|
|
|
Secured by Farmland |
|
139,799,353 |
|
142,588,684 |
|
135,339,361 |
|
Construction, Land Development and Other Land |
|
28,680,776 |
|
33,855,844 |
|
35,943,146 |
|
1-4 Family Residential Properties |
|
41,713,258 |
|
41,426,423 |
|
51,759,914 |
|
Multifamily Residential Properties |
|
45,975,886 |
|
45,192,987 |
|
42,719,058 |
|
Owner Occupied Nonresidential Properties |
|
93,341,233 |
|
97,345,299 |
|
94,035,588 |
|
Non-Owner Occupied Nonresidential Properties |
|
222,079,538 |
|
223,180,866 |
|
171,361,023 |
|
Total Loans Secured by Real Estate |
|
571,590,044 |
|
583,590,103 |
|
531,158,090 |
|
|
|
|
|
|
|
|
|
Municipal Leases: |
|
18,961,522 |
|
19,464,532 |
|
19,596,422 |
|
Other Loans: |
|
160,165 |
|
167,794 |
|
240,925 |
|
|
|
|
|
|
|
|
|
Total Loans |
|
$ 804,668,120 |
|
$ 679,894,288 |
|
$ 648,985,053 |
|
|
|
(2) These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for analyses of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. |
|
Suncrest Bank |
||||||||||||
|
Average Balance Sheet and Yields (Unaudited) |
||||||||||||
|
For the Three Months Ended |
||||||||||||
|
|
|
June 30, 2020 |
|
March 31, 2020 |
||||||||
|
|
|
Average |
|
|
|
Average |
|
Average |
|
|
|
Average |
|
|
|
Balance |
|
Interest |
|
Yield/Rate |
|
Balance |
|
Interest |
|
Yield/Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits in Other Financial Institutions |
|
$ 104,997,550 |
|
$ 31,418 |
|
0.12% |
|
$ 79,166,231 |
|
$ 262,378 |
|
1.33% |
|
Investment Securities |
|
248,509,748 |
|
1,533,208 |
|
2.47% |
|
201,137,316 |
|
1,285,695 |
|
2.56% |
|
Loans |
|
761,220,714 |
|
9,043,344 |
|
4.78% |
|
659,206,812 |
|
9,311,568 |
|
5.68% |
|
Total Interest Earning Assets |
|
1,114,728,012 |
|
10,607,970 |
|
3.83% |
|
939,510,359 |
|
10,859,641 |
|
4.65% |
|
Noninterest Earning Assets |
|
81,563,032 |
|
|
|
|
|
80,808,526 |
|
|
|
|
|
Total Assets |
|
$ 1,196,291,044 |
|
|
|
|
|
$ 1,020,318,885 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Bearing Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Bearing Transaction Accounts |
|
$ 173,993,644 |
|
114,631 |
|
0.26% |
|
$ 128,885,992 |
|
242,934 |
|
0.76% |
|
Savings and Money Market Accounts |
|
361,680,471 |
|
377,646 |
|
0.42% |
|
353,116,947 |
|
664,814 |
|
0.76% |
|
Time Deposits |
|
78,902,446 |
|
221,256 |
|
1.13% |
|
80,351,041 |
|
237,531 |
|
1.19% |
|
Total Interest Bearing Deposits |
|
614,576,561 |
|
713,533 |
|
0.47% |
|
562,353,980 |
|
1,145,279 |
|
0.82% |
|
Other Borrowings |
|
42,628,331 |
|
36,923 |
|
0.35% |
|
- |
|
- |
|
- |
|
Total Interest Bearing Liabilities |
|
657,204,892 |
|
750,456 |
|
0.46% |
|
562,353,980 |
|
1,145,279 |
|
0.82% |
|
Noninterest Bearing Transaction Accounts |
|
374,417,383 |
|
|
|
|
|
298,089,928 |
|
|
|
|
|
Total Funding Sources |
|
1,031,622,275 |
|
|
|
|
|
860,443,908 |
|
|
|
|
|
Noninterest Bearing Liabilities |
|
7,260,169 |
|
|
|
|
|
7,834,040 |
|
|
|
|
|
Shareholders' Equity |
|
157,408,600 |
|
|
|
|
|
152,040,937 |
|
|
|
|
|
Total Liabilities and Shareholder's Equity |
|
$ 1,196,291,044 |
|
|
|
|
|
$ 1,020,318,885 |
|
|
|
|
|
Net Interest Income |
|
|
|
$ 9,857,514 |
|
|
|
|
|
$ 9,714,362 |
|
|
|
Net Interest Margin |
|
|
|
|
|
3.56% |
|
|
|
|
|
4.16% |
|
Suncrest Bank |
|
|
|
|
|
|
|
|
||||
|
Average Balance Sheet and Yields (Unaudited) |
|
|
|
|
|
|
|
|||||
|
For the Three Months Ended |
|
|
|
|
|
|
|
|||||
|
|
|
June 30, 2020 |
|
June 30, 2019 |
||||||||
|
|
|
Average |
|
|
|
Average |
|
Average |
|
|
|
Average |
|
|
|
Balance |
|
Interest |
|
Yield/Rate |
|
Balance |
|
Interest |
|
Yield/Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits in Other Financial Institutions |
|
$ 104,997,550 |
|
$ 31,418 |
|
0.12% |
|
$ 53,826,806 |
|
$ 339,046 |
|
2.53% |
|
Investment Securities |
|
248,509,748 |
|
1,533,208 |
|
2.47% |
|
158,173,939 |
|
1,114,847 |
|
2.82% |
|
Loans |
|
761,220,714 |
|
9,043,344 |
|
4.78% |
|
640,506,723 |
|
9,426,583 |
|
5.90% |
|
Total Interest Earning Assets |
|
1,114,728,012 |
|
10,607,970 |
|
3.83% |
|
852,507,468 |
|
10,880,476 |
|
5.12% |
|
Noninterest Earning Assets |
|
81,563,032 |
|
|
|
|
|
81,120,229 |
|
|
|
|
|
Total Assets |
|
$ 1,196,291,044 |
|
|
|
|
|
$ 933,627,697 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Bearing Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Bearing Transaction Accounts |
|
$ 173,993,644 |
|
114,631 |
|
0.26% |
|
$ 103,039,731 |
|
170,050 |
|
0.66% |
|
Savings and Money Market Accounts |
|
361,680,471 |
|
377,646 |
|
0.42% |
|
307,778,084 |
|
689,691 |
|
0.90% |
|
Time Deposits |
|
78,902,446 |
|
221,256 |
|
1.13% |
|
91,964,284 |
|
242,661 |
|
1.06% |
|
Total Interest Bearing Deposits |
|
614,576,561 |
|
713,533 |
|
0.47% |
|
502,782,099 |
|
1,102,402 |
|
0.88% |
|
Other Borrowings |
|
42,628,331 |
|
36,923 |
|
0.35% |
|
- |
|
- |
|
- |
|
Total Interest Bearing Liabilities |
|
657,204,892 |
|
750,456 |
|
0.46% |
|
502,782,099 |
|
1,102,402 |
|
0.88% |
|
Noninterest Bearing Transaction Accounts |
|
374,417,383 |
|
|
|
|
|
282,794,851 |
|
|
|
|
|
Total Funding Sources |
|
1,031,622,275 |
|
|
|
|
|
785,576,950 |
|
|
|
|
|
Noninterest Bearing Liabilities |
|
7,260,169 |
|
|
|
|
|
8,410,437 |
|
|
|
|
|
Shareholders' Equity |
|
157,408,600 |
|
|
|
|
|
139,640,310 |
|
|
|
|
|
Total Liabilities and Shareholder's Equity |
|
$ 1,196,291,044 |
|
|
|
|
|
$ 933,627,697 |
|
|
|
|
|
Net Interest Income |
|
|
|
$ 9,857,514 |
|
|
|
|
|
$ 9,778,074 |
|
|
|
Net Interest Margin |
|
|
|
|
|
3.56% |
|
|
|
|
|
4.60% |
|
Suncrest Bank |
||||||||||||
|
Average Balance Sheet and Yields (Unaudited) |
||||||||||||
|
For the Six Months Ended |
||||||||||||
|
|
|
June 30, 2020 |
|
June 30, 2019 |
||||||||
|
|
|
Average |
|
|
|
Average |
|
Average |
|
|
|
Average |
|
|
|
Balance |
|
Interest |
|
Yield/Rate |
|
Balance |
|
Interest |
|
Yield/Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits in Other Financial Institutions |
|
$ 91,710,912 |
|
$ 293,797 |
|
0.64% |
|
$ 55,806,606 |
|
$ 696,821 |
|
2.52% |
|
Investment Securities |
|
225,194,510 |
|
2,818,901 |
|
2.50% |
|
151,287,850 |
|
2,104,338 |
|
2.78% |
|
Loans |
|
710,213,763 |
|
18,354,911 |
|
5.20% |
|
633,581,140 |
|
18,367,393 |
|
5.85% |
|
Total Interest Earning Assets |
|
1,027,119,185 |
|
21,467,609 |
|
4.20% |
|
840,675,596 |
|
21,168,552 |
|
5.08% |
|
Noninterest Earning Assets |
|
81,185,778 |
|
|
|
|
|
77,580,396 |
|
|
|
|
|
Total Assets |
|
$ 1,108,304,963 |
|
|
|
|
|
$ 918,255,992 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Bearing Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Bearing Transaction Accounts |
|
$ 151,439,818 |
|
148,059 |
|
0.20% |
|
$ 97,792,003 |
|
286,060 |
|
0.59% |
|
Savings and Money Market Accounts |
|
357,398,709 |
|
1,251,966 |
|
0.70% |
|
306,860,242 |
|
1,263,425 |
|
0.83% |
|
Time Deposits |
|
79,626,743 |
|
458,787 |
|
1.16% |
|
94,497,116 |
|
483,740 |
|
1.03% |
|
Total Interest Bearing Deposits |
|
588,465,270 |
|
1,858,812 |
|
0.64% |
|
499,149,361 |
|
2,033,225 |
|
0.82% |
|
Other Borrowings |
|
21,314,165 |
|
36,923 |
|
0.35% |
|
- |
|
- |
|
- |
|
Total Interest Bearing Liabilities |
|
609,779,435 |
|
1,895,735 |
|
0.63% |
|
499,149,361 |
|
2,033,225 |
|
0.82% |
|
Noninterest Bearing Transaction Accounts |
|
336,253,655 |
|
|
|
|
|
273,907,307 |
|
|
|
|
|
Total Funding Sources |
|
946,033,090 |
|
|
|
|
|
773,056,668 |
|
|
|
|
|
Noninterest Bearing Liabilities |
|
7,547,105 |
|
|
|
|
|
7,905,168 |
|
|
|
|
|
Shareholders' Equity |
|
154,724,768 |
|
|
|
|
|
137,294,156 |
|
|
|
|
|
Total Liabilities and Shareholder's Equity |
|
$ 1,108,304,963 |
|
|
|
|
|
$ 918,255,992 |
|
|
|
|
|
Net Interest Income |
|
|
|
$ 19,571,874 |
|
|
|
|
|
$ 19,135,327 |
|
|
|
Net Interest Margin |
|
|
|
|
|
3.83% |
|
|
|
|
|
4.59% |
|
|
|
1 Includes unfunded commitments |
|
2 Represents interest recoveries on non-accrual loans |
|
3 Represents accretion of acquired loan fair value marks |
|
4 Excludes non-recurring income, income from accretion of fair value marks and non-recurring costs, non-GAAP financial measure |
|
5 Includes noninterest-bearing Demand, Savings, NOW and Money Market Accounts |
|
6 Interagency Joint Press Release, March 22nd 2020 (as revised on April 7th), and CARES Act Section 4013 |
View original content:http://www.prnewswire.com/news-releases/suncrest-bank-reports-second-quarter-earnings-maintains-strong-net-income-deposits-increased-by-over-30--assisted-700-ppp-customers-301100618.html
SOURCE Suncrest Bank