RALEIGH, N.C., July 29, 2019 (GLOBE NEWSWIRE) — West Town Bancorp, Inc. (OTC PINK: WTWB) (the “Company” or “West Town”), the financial holding company for West Town Bank & Trust, announced today its financial results for the three months ended June 30, 2019. Highlights include the following:
Second quarter net income of $6,129,000 or $2.00 per diluted share, compared to $7,671,000 or $2.47 per diluted share for the second quarter of 2018.
- Return on average assets of 5.98%, compared to 5.72% for the second quarter of 2018.
- Return on average common equity of 30.35%, compared to 41.73% for the second quarter of 2018.
- Return on average tangible common equity (a non-GAAP financial measure) of 42.51%, compared to 61.68% for the second quarter of 2018.
- Windsor Advantage, LLC (“Windsor”) revenue of $2,581,000 as compared to $2,052,000 for the same period last year, due primarily to West Town acquiring 100% of Windsor on April 30, 2018.
Sound Bank Recapitalization
As previously announced, on May 6, 2019 Sound Bank, formerly a wholly-owned subsidiary of West Town, completed a recapitalization that resulted in West Town’s ownership position in the bank being significantly diluted. As part of the recapitalization, West Town sold a substantial portion of its interest in Sound Bank through a series of concurrent secondary sales of shares of Sound Bank common stock, which resulted in gross proceeds to West Town of $28,010,000 and a pre-tax gain of approximately $6.6 million. West Town retains an ownership interest in Sound Bank’s voting common stock of approximately 4.9% and a 9.9% total equity interest in Sound Bank.
Eric Bergevin, President and CEO commented, “We are pleased with the positive financial impact of the Sound Bank recapitalization, whereby West Town successfully monetized its investment with an over 20% return on investment in just over one and a half years. The $6.6 million pre-tax gain obviously impacted our financial performance for the second quarter; however, at the same time, we continue to perform on all cylinders. Our government guaranteed lending department originated loan commitments of $65.9 million and earned $1.8 million in revenue for the second quarter, while Windsor turned in a record quarter of $2.6 million in revenue, driven by a 5th consecutive quarter of increased servicing revenue. Additionally, we paid off the Company’s outstanding $1.9 million line of credit balance while keeping the line available and deployed capital from the Sound Bank transaction into a stock repurchase program. As of June 30, 2019, we had completed the repurchase of 103,793 shares of the Company’s voting common stock and 200,000 shares of non-voting common stock.”
Balance Sheet
At June 30, 2019, the Company’s total assets were $303,365,000, net loans held for investment were $206,092,000, loans held for sale were $14,902,000, total deposits were $210,687,000 and total shareholder’s equity was $78,815,000. Compared with June 30, 2018, total assets decreased $241,123,000 or 44%, loans held for investment decreased $194,983,000 or 49%, loans held for sale decreased $17,092,000 or 53%, total deposits decreased $166,901,000 or 44%, and total shareholders’ equity increased $3,135,000 or 4%. The decreases in assets, loans and deposits were a result of the Sound Bank recapitalization and elimination from the consolidated financials as of May 6, 2019. The increase in total shareholders’ equity resulted from retained earnings, partially offset by the Company’s stock repurchase program.
Capital Levels
At June 30, 2019, the regulatory capital ratios of West Town Bank & Trust exceeded the minimum thresholds established for well-capitalized banks under applicable banking regulations.
“Well Capitalized” Minimums | West Town Bank & Trust | |||
| Tier 1 common equity ratio | 6.5 | % | 15.37 | % |
| Tier 1 risk-based capital ratio | 8.0 | % | 15.37 | % |
| Total risk-based capital ratio | 10.0 | % | 16.62 | % |
| Tier 1 leverage ratio | 5.0 | % | 12.64 | % |
The Company’s book value per common share increased from $25.11 at June 30, 2018 to $28.12 at June 30, 2019. The Company’s tangible book value per common share (a non-GAAP financial measure) increased from $14.96 at June 30, 2018 to $20.67 at June 30, 2019 due primarily to the gain on sale of Sound Bank and the subsequent removal of the intangible assets associated with Sound Bank from the consolidated financial statements.
Asset Quality
The Company’s nonperforming assets to total assets ratio increased 46 basis points from 1.31% at June 30, 2018 to 1.77% at June 30, 2019 primarily due to the removal of Sound Bank from the consolidated financial statements. Non-acquired nonaccrual loans decreased $2,943,000 as of June 30, 2019 as compared to the prior year while foreclosed assets increased $2,015,000.
The Company recorded a $477,000 provision for loan losses during the second quarter of 2019 as compared to a provision of $261,000 in second quarter 2018. The Company recorded $200,000 in net charge-offs during the second quarter 2019 with the remaining provision expense due to volume growth.
| Dollars in thousands | Ending Balance | ||||||||||||||
| 6/30/19 | 3/31/19 | 12/31/18 | 9/30/18 | 6/30/18 | |||||||||||
| Nonaccrual loans – originated | $ | 3,290 | $ | 4,666 | $ | 6,538 | $ | 5,806 | $ | 6,233 | |||||
| Nonaccrual loans – acquired | 0 | 262 | 272 | 280 | 292 | ||||||||||
| Foreclosed assets – originated | 2,069 | 2,493 | 723 | 796 | 54 | ||||||||||
| 90 days past due – originated | 0 | 407 | 67 | 3 | 8 | ||||||||||
| 90 days past due – acquired | 0 | 421 | 251 | 280 | 553 | ||||||||||
| Total nonperforming assets | 5,359 | 8,249 | 7,851 | 7,165 | 7,140 | ||||||||||
| Total nonperforming assets – originated | 5,359 | 7,566 | 7,328 | 6,605 | 6,295 | ||||||||||
| Net charge-offs | $ | 200 | $ | 58 | $ | 334 | $ | 725 | $ | 216 | |||||
| Annualized net charge-offs to total average portfolio loans | 0.27 | % | 0.05 | % | 0.31 | % | 0.68 | % | 0.20 | % | |||||
| Ratio of total nonperforming assets to total assets | 1.77 | % | 1.40 | % | 1.41 | % | 1.30 | % | 1.31 | % | |||||
| Ratio of total nonperforming loans to total portfolio loans | 1.57 | % | 1.38 | % | 1.74 | % | 1.56 | % | 1.75 | % | |||||
| Ratio of total allowance for loan losses to total portfolio loans | 1.62 | % | 0.98 | % | 0.97 | % | 0.95 | % | 0.95 | % |
Net Interest Income and Margin
Net interest income for the three months ended June 30, 2019 decreased $1,847,000 or 33% in comparison to the second quarter 2018, primarily due to the removal of Sound Bank from the consolidated financial statements as of May 6, 2019. The net interest margin decreased from 4.68% for the second quarter 2018 to 4.03% for the second quarter 2019. The margin compression is largely related to the increase in the cost of funds from 1.14% to 1.56%, due primarily to the deconsolidation of Sound Bank from the Company’s consolidated financial statements and the inclusion of the $9,990,000 resulting equity investment in Sound Bank in the Company’s investment portfolio, which reduced the Company’s average yield on assets by approximately 10 basis points due to it not earning dividend income.
| Dollars in thousands | Three Months Ended | Year-to-Date | |||||||||||||
| 6/30/19 | 3/31/19 | 12/31/18 | 9/30/18 | 6/30/18 | 6/30/19 | 6/30/18 | |||||||||
| Quarterly average balances: | |||||||||||||||
| Loans | $ | 297,501 | $ | 435,583 | $ | 424,758 | $ | 426,160 | $ | 435,778 | $ | 366,161 | $ | 441,287 | |
| Investment securities | 20,960 | 21,119 | 21,060 | 15,377 | 13,949 | 21,039 | 12,658 | ||||||||
| Interest-bearing balances and other | 47,025 | 54,690 | 41,472 | 28,481 | 23,258 | 50,836 | 24,026 | ||||||||
| Total interest-earning assets | 365,486 | 511,392 | 487,290 | 470,018 | 472,985 | 438,036 | 477,971 | ||||||||
| Noninterest-bearing deposits | 75,643 | 112,836 | 96,068 | 90,073 | 82,971 | 94,137 | 82,910 | ||||||||
| Interest-bearing liabilities: | |||||||||||||||
| Interest-bearing deposits | 234,603 | 338,682 | 319,900 | 294,502 | 292,409 | 286,355 | 297,237 | ||||||||
| Borrowed funds | 17,204 | 37,852 | 50,792 | 63,356 | 78,457 | 27,470 | 77,445 | ||||||||
| Total interest-bearing liabilities | 251,807 | 376,534 | 370,692 | 357,858 | 370,866 | 313,825 | 374,682 | ||||||||
| Total assets | 416,840 | 576,640 | 553,855 | 536,172 | 538,249 | 496,299 | 537,222 | ||||||||
| Common shareholders’ equity | 82,090 | 78,698 | 77,817 | 77,129 | 73,725 | 80,403 | 70,387 | ||||||||
| Tangible common equity (1) | 57,825 | 48,918 | 47,695 | 46,667 | 49,882 | 53,396 | 53,818 |
(1) Non-GAAP financial measure. Tangible common equity is calculated by subtracting intangible assets from common shareholders’ equity.
| Dollars in thousands | Three Months Ended | Year-to-Date | ||||||||||||||||||||
| 6/30/19 | 3/31/19 | 12/31/18 | 9/30/18 | 6/30/18 | 6/30/19 | 6/30/18 | ||||||||||||||||
| Interest Income/Expense: | ||||||||||||||||||||||
| Loans | $ | 4,607 | $ | 6,523 | $ | 6,379 | $ | 6,329 | $ | 6,577 | $ | 11,130 | $ | 12,613 | ||||||||
| Investment securities | 100 | 167 | 171 | 111 | 105 | 267 | 168 | |||||||||||||||
| Interest-bearing balances and other | 241 | 356 | 248 | 170 | 126 | 597 | 247 | |||||||||||||||
| Total interest income | 4,948 | 7,046 | 6,798 | 6,610 | 6,808 | 11,994 | 13,028 | |||||||||||||||
| Deposits | 1,104 | 1,432 | 1,169 | 906 | 815 | 2,536 | 1,586 | |||||||||||||||
| Borrowings | 172 | 330 | 396 | 431 | 474 | 502 | 852 | |||||||||||||||
| Total interest expense | 1,276 | 1,762 | 1,565 | 1,337 | 1,289 | 3,038 | 2,438 | |||||||||||||||
| Net interest income | $ | 3,672 | $ | 5,284 | $ | 5,233 | $ | 5,273 | $ | 5,519 | $ | 8,956 | $ | 10,590 | ||||||||
| Average Yields and Costs: | ||||||||||||||||||||||
| Loans | 6.21 | % | 6.07 | % | 5.96 | % | 5.89 | % | 6.05 | % | 6.13 | % | 5.76 | % | ||||||||
| Investment securities | 1.91 | % | 3.16 | % | 3.25 | % | 2.89 | % | 3.01 | % | 2.54 | % | 2.65 | % | ||||||||
| Interest-bearing balances and other | 2.06 | % | 2.64 | % | 2.37 | % | 2.37 | % | 2.17 | % | 2.37 | % | 2.07 | % | ||||||||
| Total interest-earning assets | 5.43 | % | 5.59 | % | 5.53 | % | 5.58 | % | 5.77 | % | 5.51 | % | 5.50 | % | ||||||||
| Total interest-bearing deposits | 1.89 | % | 1.71 | % | 1.45 | % | 1.22 | % | 1.12 | % | 1.79 | % | 1.08 | % | ||||||||
| Borrowed funds | 4.01 | % | 3.54 | % | 3.09 | % | 2.70 | % | 2.42 | % | 3.69 | % | 2.22 | % | ||||||||
| Total interest-bearing liabilities | 2.03 | % | 1.90 | % | 1.67 | % | 1.48 | % | 1.39 | % | 1.95 | % | 1.31 | % | ||||||||
| Cost of funds | 1.56 | % | 1.46 | % | 1.33 | % | 1.18 | % | 1.14 | % | 1.50 | % | 1.07 | % | ||||||||
| Net interest margin | 4.03 | % | 4.19 | % | 4.26 | % | 4.45 | % | 4.68 | % | 4.12 | % | 4.47 | % |
Noninterest Income
Noninterest income for the three months ended June 30, 2019 was $12,318,000, a decrease of $38,000 as compared to the same prior year period. Specific items to note include:
- Government lending revenue of $1,754,000 was a decrease of $2,487,000 or 59% in comparison to the second quarter of 2018 primarily due to the unwinding in the first six months of 2018 of the originate-and-hold strategy instituted in the fourth quarter of 2017; and
- Windsor revenue totaled $2,581,000, an increase of $529,000 or 26% as compared to the $2,052,000 income earned from the investment in Windsor during the same prior year period. The increase is directly attributable to the Company’s acquisition of the remaining 56.5% of Windsor on April 30, 2018.
- Mortgage revenue totaled $1,113,000, an increase of $245,000 or 28% as compared to the second quarter 2018. Loans originated for secondary market sale increased from $21,175,000 in the second quarter 2018 to $22,195,000 in the second quarter 2019.
- The fair value adjustment on the Sound Bank equity investment was $6,635,000 for the quarter and was based on the Sound Bank recapitalization pricing.
Noninterest Expense
Noninterest expense for the second quarter 2019 was $7,210,000, a decrease of $205,000 or 3%, from $7,415,000 for the second quarter 2018. The decreases in compensation, occupancy, data processing, communications and other operating expenses are primarily related to the removal of Sound Bank from the consolidated financial statements as of May 6, 2019. Also impacting noninterest expenses for the quarter were increased legal fees and transaction-related expenses pertaining to the Sound Bank recapitalization.
Expanded Stock Repurchase Program
Following the close of the 2019 second quarter, the Company received approval from the Federal Reserve Bank of Chicago to expand its current stock repurchase program and has since repurchased an additional 436,014 of the Company’s voting common shares and 107,380 of the Company’s non-voting common shares. These most recent share repurchases occurred subsequent to June 30th and are not reflected in the Company’s reported June 30, 2019 financial information. In commenting on the Company’s repurchase activity, Mr. Bergevin said, “We are pleased with the participation in the repurchase program to date and still have capacity to repurchase about an additional $2 million of common stock. Given the strong liquidity position of the Company following the divestiture of our controlling interest in Sound Bank, we believe the share repurchases are an effective use of our excess cash, while also offering additional liquidity options to our shareholders. With the reduction in the number of outstanding shares of Company common stock, we expect the repurchases will be accretive to our earnings per share in future periods.”
About West Town Bancorp, Inc.
West Town Bancorp, Inc. is the financial holding company for West Town Bank & Trust, an Illinois state-chartered bank. West Town Bank & Trust provides banking services through its two full-service offices located in the greater Chicago area. Primary deposit products are checking, savings, and certificate of deposit accounts, and primary lending products are government guaranteed lending, residential mortgage, commercial, and installment loans. The Company is also the parent company of Windsor Advantage, LLC, a loan servicing company, and West Town Insurance Agency, Inc., an insurance agency. The Company is registered with, and supervised by, the Federal Reserve. West Town Bank & Trust’s primary regulators are the Illinois Department of Financial and Professional Regulation and the FDIC.
For more information, visit https://www.westtownbank.com/
Important Note Regarding Forward-Looking Statements
This release contains certain forward-looking statements with respect to the financial condition, results of operations, and business of the Company. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of the Company and on the information available to management at the time this release was prepared. These statements can be identified by the use of words such as “expect,” “anticipate,” “estimate,” “believe,” variations of these words, and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause a difference include, among others: changes in the national and local economies or market conditions; changes in interest rates, deposit flows, loan demand, and asset quality, including real estate and other collateral values; changes in Small Business Administration rules, regulations, or loan products, including the section 7(a) program; changes in other government guaranteed loan programs or our ability to participate in such programs; changes in tax law, including the impact of such changes on our tax assets and liabilities; future governmental shutdowns that may impact revenues associated with our lending and other operations that are dependent on government guaranteed loan programs; changes in banking regulations and accounting principles, policies, or guidelines; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with the Company’s acquisition and divesture activities; the failure of our strategic investments or acquisitions to perform as anticipated and the impact of any impairments to our intangible assets, such as goodwill; the impact of our strategic initiatives on our ability to retain key employees, and the impact of competition from traditional or new sources. These, and other factors that may emerge, could cause decisions and actual results to differ materially from current expectations. The Company assumes no obligation to revise, update, or clarify forward-looking statements to reflect events or conditions after the date of this release.
Consolidated Balance Sheet
| Dollars in thousands; unaudited | Ending Balance | ||||||||||||||
| 6/30/19 | 3/31/19 | 12/31/18 | 9/30/18 | 6/30/18 | |||||||||||
| Assets | |||||||||||||||
| Cash and due from banks | $ | 2,665 | $ | 5,433 | $ | 5,005 | $ | 5,292 | $ | 4,961 | |||||
| Interest-bearing deposits | 17,196 | 72,382 | 43,448 | 38,779 | 27,532 | ||||||||||
| Total cash and cash equivalents | 19,861 | 77,815 | 48,453 | 44,071 | 32,493 | ||||||||||
| Securities available for sale, at fair value | 20,716 | 21,031 | 21,332 | 20,615 | 13,769 | ||||||||||
| Loans held for sale | 14,902 | 11,037 | 16,552 | 15,819 | 31,994 | ||||||||||
| Loans held for investment: | |||||||||||||||
| Originated loans | 209,492 | 336,505 | 322,038 | 307,166 | 294,471 | ||||||||||
| Acquired loans, net | 0 | 81,978 | 88,556 | 101,311 | 110,439 | ||||||||||
| Allowance for loan losses | (3,400 | ) | (4,115 | ) | (4,000 | ) | (3,900 | ) | (3,835 | ) | |||||
| Net loans held for investment | 206,092 | 414,368 | 406,594 | 404,577 | 401,075 | ||||||||||
| Premises and equipment, net | 4,832 | 12,099 | 12,166 | 12,263 | 11,586 | ||||||||||
| Foreclosed assets | 2,069 | 2,493 | 723 | 796 | 54 | ||||||||||
| Servicing assets | 3,220 | 3,619 | 3,952 | 4,280 | 4,598 | ||||||||||
| Bank owned life insurance | 4,964 | 9,090 | 9,034 | 8,977 | 8,917 | ||||||||||
| Accrued interest receivable | 1,196 | 1,637 | 1,637 | 1,758 | 1,776 | ||||||||||
| Goodwill | 12,721 | 19,737 | 19,745 | 19,745 | 19,745 | ||||||||||
| Other intangible assets, net | 8,154 | 9,827 | 10,157 | 10,493 | 10,837 | ||||||||||
| Other assets | 4,638 | 8,066 | 4,979 | 8,100 | 7,644 | ||||||||||
| Total assets | $ | 303,365 | $ | 590,819 | $ | 555,324 | $ | 551,494 | $ | 544,488 | |||||
| Liabilities and Shareholders’ Equity | |||||||||||||||
| Liabilities | |||||||||||||||
| Deposits: | |||||||||||||||
| Noninterest-bearing | $ | 46,068 | $ | 128,435 | $ | 97,777 | $ | 94,829 | $ | 88,172 | |||||
| Interest-bearing | 164,619 | 345,581 | 335,140 | 305,257 | 289,416 | ||||||||||
| Total deposits | 210,687 | 474,016 | 432,917 | 400,086 | 377,588 | ||||||||||
| Short term borrowings | 1,968 | 20,000 | 27,000 | 58,400 | 73,400 | ||||||||||
| Long term borrowings | 3,900 | 6,294 | 6,781 | 7,267 | 7,754 | ||||||||||
| Accrued interest payable | 433 | 927 | 868 | 550 | 466 | ||||||||||
| Other liabilities | 7,562 | 9,860 | 10,189 | 8,746 | 9,600 | ||||||||||
| Total liabilities | 224,550 | 511,097 | 477,755 | 475,049 | 468,808 | ||||||||||
| Shareholders’ equity | |||||||||||||||
| Preferred stock | 0 | 0 | 0 | 0 | 0 | ||||||||||
| Common stock, voting | 2,674 | 2,749 | 2,686 | 2,666 | 2,660 | ||||||||||
| Common stock, non-voting | 129 | 329 | 329 | 329 | 329 | ||||||||||
| Additional paid-in capital | 38,557 | 45,287 | 44,760 | 44,576 | 44,429 | ||||||||||
| Retained earnings | 37,375 | 31,273 | 29,928 | 29,154 | 28,436 | ||||||||||
| Accumulated other comprehensive income (loss) | 80 | 84 | (134 | ) | (280 | ) | (174 | ) | |||||||
| Total shareholders’ equity | 78,815 | 79,722 | 77,569 | 76,445 | 75,680 | ||||||||||
| Total liabilities and shareholders’ equity | $ | 303,365 | $ | 590,819 | $ | 555,324 | $ | 551,494 | $ | 544,488 |
Financial Performance (Consolidated)
| Dollars in thousands, except per share data; unaudited | Three Months Ended | Year-to-Date | ||||||||||||||
| 6/30/19 | 3/31/19 | 12/31/18 | 9/30/18 | 6/30/18 | 6/30/19 | 6/30/18 | ||||||||||
| Interest income | ||||||||||||||||
| Interest and fees on loans | $ | 4,607 | $ | 6,523 | $ | 6,379 | $ | 6,329 | $ | 6,577 | $ | 11,130 | $ | 12,613 | ||
| Investment securities & deposits | 341 | 523 | 419 | 281 | 231 | 864 | 415 | |||||||||
| Total interest income | 4,948 | 7,046 | 6,798 | 6,610 | 6,808 | 11,994 | 13,028 | |||||||||
| Interest expense | ||||||||||||||||
| Interest on deposits | 1,104 | 1,432 | 1,169 | 906 | 815 | 2,536 | 1,586 | |||||||||
| Interest on borrowed funds | 172 | 330 | 396 | 431 | 474 | 502 | 852 | |||||||||
| Total interest expense | 1,276 | 1,762 | 1,565 | 1,337 | 1,289 | 3,038 | 2,438 | |||||||||
| Net interest income | 3,672 | 5,284 | 5,233 | 5,273 | 5,519 | 8,956 | 10,590 | |||||||||
| Provision for loan losses | 477 | 173 | 434 | 789 | 261 | 650 | 730 | |||||||||
| Noninterest income | ||||||||||||||||
| Government lending revenue | 1,754 | 880 | 1,793 | 1,121 | 4,241 | 2,634 | 7,295 | |||||||||
| Mortgage revenue | 1,113 | 435 | 359 | 491 | 868 | 1,548 | 1,323 | |||||||||
| Service charge revenue | 99 | 226 | 228 | 196 | 222 | 325 | 441 | |||||||||
| Bank owned life insurance income | 44 | 56 | 58 | 59 | 64 | 100 | 121 | |||||||||
| Windsor revenue | 2,581 | 2,086 | 2,116 | 1,791 | 1,683 | 4,667 | 2,616 | |||||||||
| Income from Windsor investment | 0 | 0 | 0 | 0 | 369 | 0 | 0 | |||||||||
| Fair value adjustment on equity investment | 6,635 | 0 | 0 | 0 | 0 | 6,635 | 0 | |||||||||
| Gain on consolidation of Windsor | 0 | 0 | 0 | 0 | 4,776 | 0 | 4,776 | |||||||||
| Other noninterest income | 92 | 122 | 163 | 211 | 133 | 214 | 305 | |||||||||
| Total noninterest income | 12,318 | 3,805 | 4,717 | 3,869 | 12,356 | 16,123 | 16,877 | |||||||||
| Noninterest expense | ||||||||||||||||
| Compensation | 3,385 | 4,261 | 4,689 | 4,245 | 4,050 | 7,646 | 7,316 | |||||||||
| Occupancy and equipment | 338 | 506 | 536 | 522 | 462 | 844 | 875 | |||||||||
| Loan and special assets | 510 | 179 | 437 | 67 | 407 | 689 | 769 | |||||||||
| Professional services | 569 | 582 | 511 | 437 | 317 | 1,151 | 591 | |||||||||
| Data processing | 198 | 345 | 381 | 326 | 325 | 543 | 638 | |||||||||
| Communication | 110 | 226 | 208 | 191 | 203 | 336 | 438 | |||||||||
| Advertising | 109 | 112 | 135 | 147 | 418 | 221 | 472 | |||||||||
| Loss on sale of foreclosed assets | 35 | 21 | 0 | 0 | 41 | 56 | 41 | |||||||||
| Transaction-related expenses | 916 | 43 | 31 | 5 | 74 | 959 | 88 | |||||||||
| Other operating expense | 1,040 | 1,179 | 1,259 | 1,013 | 1,118 | 2,219 | 1,982 | |||||||||
| Total noninterest expense | 7,210 | 7,454 | 8,187 | 6,953 | 7,415 | 14,664 | 13,210 | |||||||||
| Income before income taxes | 8,303 | 1,462 | 1,329 | 1,400 | 10,199 | 9,765 | 13,527 | |||||||||
| Income tax expense | 2,174 | 397 | 373 | 372 | 2,528 | 2,571 | 3,375 | |||||||||
| Net income | $ | 6,129 | $ | 1,065 | $ | 956 | $ | 1,028 | $ | 7,671 | $ | 7,194 | $ | 10,152 | ||
| Basic earnings per common share | $ | 2.03 | $ | 0.35 | $ | 0.31 | $ | 0.34 | $ | 2.58 | $ | 2.38 | $ | 3.42 | ||
| Diluted earnings per common share | $ | 2.00 | $ | 0.34 | $ | 0.30 | $ | 0.33 | $ | 2.47 | $ | 2.34 | $ | 3.27 | ||
| Weighted average common shares outstanding | 2,997 | 3,054 | 3,008 | 2,996 | 2,980 | 3,025 | 2,966 | |||||||||
| Diluted average common shares outstanding | 3,045 | 3,115 | 3,124 | 3,127 | 3,115 | 3,080 | 3,101 |
Performance Ratios
| Three Months Ended | Year-to-Date | |||||||||||||||||||||
| 6/30/19 | 3/31/19 | 12/31/18 | 9/30/18 | 6/30/18 | 6/30/19 | 6/30/18 | ||||||||||||||||
| PER COMMON SHARE | ||||||||||||||||||||||
| Basic earnings per common share | $ | 2.03 | $ | 0.35 | $ | 0.31 | $ | 0.34 | $ | 2.58 | $ | 2.38 | $ | 3.42 | ||||||||
| Diluted earnings per common share | $ | 2.00 | $ | 0.34 | $ | 0.30 | $ | 0.33 | $ | 2.47 | $ | 2.34 | $ | 3.27 | ||||||||
| Book value per common share | $ | 28.12 | $ | 25.70 | $ | 25.52 | $ | 25.31 | $ | 25.11 | $ | 28.12 | $ | 25.11 | ||||||||
| Tangible book value per common share | $ | 20.67 | $ | 16.17 | $ | 15.68 | $ | 15.30 | $ | 14.96 | $ | 20.67 | $ | 14.96 | ||||||||
| FINANCIAL RATIOS (ANNUALIZED) | ||||||||||||||||||||||
| Return on average assets | 5.98 | % | 0.75 | % | 0.68 | % | 0.76 | % | 5.72 | % | 2.96 | % | 3.81 | % | ||||||||
| Return on average common shareholders’ equity | 30.35 | % | 5.48 | % | 4.87 | % | 5.29 | % | 41.73 | % | 18.25 | % | 29.08 | % | ||||||||
| Return on tangible common equity | 42.51 | % | 8.83 | % | 7.95 | % | 8.74 | % | 61.68 | % | 27.17 | % | 38.04 | % | ||||||||
| Net interest margin (FTE) | 4.03 | % | 4.19 | % | 4.26 | % | 4.45 | % | 4.68 | % | 4.12 | % | 4.47 | % | ||||||||
| Efficiency ratio(1) | 77.1 | % | 82.0 | % | 82.3 | % | 76.1 | % | 56.6 | % | 79.5 | % | 58.2 | % |
(1) Efficiency ratio is calculated by dividing noninterest expense by the sum of net interest income and noninterest income, less gains or losses on sale of securities or consolidation.
Contact: Eric Bergevin, 252-482-4400
