Randall S. Eslick, President and Chief Executive Officer of
Bank of Commerce Holdings (NASDAQ:BOCH)
(the
“Company”), a $1.1 billion asset bank holding company and
parent company of Redding Bank of Commerce (the “Bank”), today
announced financial results for the quarter ended March 31, 2016.
Net loss available to common shareholders for the quarter ended
March 31, 2016 was $960 thousand or $0.07 per share – diluted,
compared with net income available to common shareholders of $1.8
million or $0.13 per share – diluted for the same period of 2015.
The current quarter results were impacted by the following
expenses totaling $2.8 million related to the acquisition of five
Bank of America branches and the execution of our plans to
reconfigure our Balance Sheet using liquidity provided by those
branches:
- $2.3 million loss on termination of interest rate hedge.
- $412 thousand of branch acquisition transition costs.
- $57 thousand prepayment penalty on early repayment of $75.0
million Federal Home Loan Bank of San Francisco term debt.
- $39 thousand accelerated amortization of broker fees recorded
in interest expense when $17.5 million of brokered time deposits
were called and redeemed.
In addition, unrelated to the branch acquisition, the current
quarter results include the write-off of a $363 thousand deferred
tax asset.
Randall S. Eslick, President and CEO commented:
“We are pleased with the reconfiguration of our Balance
Sheet. The redemption of our SBLF preferred stock late last
year combined with our current quarter acquisition of new core
deposits and the elimination of most wholesale funding sources
provide a strong platform for the future. While we are reporting a
quarterly loss, we are focused on the long term benefit of $149.0
million of new low cost deposits, the elimination of most of our
higher cost wholesale liabilities, significant reductions in our
future interest expense and additional liquidity to fund organic
loan growth. It is the branch acquisition that makes all of this
possible. We are very proud of every employee who diligently and
professionally facilitated the transaction and we are happy to
welcome the 24 employees at our five new locations into the Redding
Bank of Commerce family.”
Financial highlights for the first quarter of
2016:
- The Company acquired $149.0 million of new deposits from Bank
of America which bear an average interest cost of 0.09%.
- The Company paid off $75.0 million of FHLB term debt and
terminated the interest rate hedge associated with that debt
eliminating future contractual interest payments on $75.0 million
at 2.64% for the period from payoff to August 1, 2016; and at 3.22%
for the period August 1, 2016 to August 1, 2017.
- Net loss available to common shareholders of $960 thousand for
the three months ended March 31, 2016 was a decrease of $2.7
million (156%) over $1.8 million net income available to common
shareholders earned during the first quarter of 2015.
- Return on average assets decreased to (0.37%) in the first
quarter of 2016 compared to 0.73% in the same quarter of 2015.
Return on average equity decreased to (4.23%) in the first quarter
of 2016 compared to 6.79% in the same quarter of 2015.
- Nonperforming assets at March 31, 2016 totaled $12.7 million or
1.18% of total assets, a decrease of $2.8 million from $15.5
million or 1.53% of total assets at December 31, 2015.
- Net loan loss recoveries of $315 thousand combined with
continuing improved asset quality resulted in no provision for loan
and lease losses during the first quarter.
- The Company’s tangible book value per share decreased to $6.57
per common share at March 31, 2016 from $6.76 at December 31, 2015.
The Company’s net interest margin was 3.44% for the first quarter
of 2016 compared to 3.52% for the fourth quarter of 2015.
- The Company’s efficiency ratio was 108.1% during the first
three months of 2016 compared to 71.5% during the same period in
2015. Excluding $2.8 million of one-time expenses related to the
acquisition and reconfiguring our Balance Sheet the efficiency
ratio for the first three months of 2016 would have been
77.5%.
Branch Acquisition
On March 11, 2016 we completed the purchase of five Bank of
America branches located in northern California. The transaction
was most attractive to us because it provided a new source of low
cost core deposits and allowed us to execute our plan to
reconfigure our Balance Sheet. The acquisition provided
approximately $142.3 million of new liquidity ($149.0 million of
new deposits less payments of $6.7 million made to Bank of
America). As we previously announced on March 14, 2016, we utilized
a portion of that new liquidity to reduce our reliance on wholesale
funding sources repaying $75.0 million to the Federal Home Loan
Bank of San Francisco and redeeming $17.5 million of brokered time
deposits. We intend to use the remaining liquidity to fund
future loan growth.
The branches acquired are located in Colusa, Willows, Orland,
Corning, and Yreka. The Bank also acquired three offsite ATM
locations in Williams, Orland and Corning. With the completion of
the acquisition, we now operate nine branches in northern
California.
The Bank paid cash consideration of $6.7 million and acquired
$155.2 million in assets, primarily cash and premises. The Bank
assumed $149.2 million in liabilities, primarily deposits. The
preliminary details of the acquisition as recorded at fair value
are presented in the table below.
|
|
|
(Amounts
in thousands) |
|
Consideration
paid: |
|
|
Cash paid |
$ |
6,709 |
Total consideration |
$ |
6,709 |
Assets
acquired: |
|
|
Cash and cash
equivalents |
$ |
149,068 |
Premises and equipment,
net |
|
4,190 |
Core deposit
intangibles |
|
1,772 |
Other assets |
|
146 |
Total assets acquired |
$ |
155,176 |
Liabilities
assumed: |
|
|
Deposits |
$ |
148,991 |
Other liabilities |
|
193 |
Total liabilities assumed |
$ |
149,184 |
Net fair value
of assets acquired over liabilities assumed |
$ |
5,992 |
Goodwill |
$ |
717 |
|
|
|
Intangibles
As part of the branch acquisition, we recorded a core deposit
intangible of $1.8 million and goodwill of $717 thousand.
Core deposits provide value as a source of liquidity that is
less expensive when compared to market rates for other funding
sources on similar terms. The cost savings (core deposit
intangible) is defined as the difference between the costs of newly
acquired deposits (i.e., interest and net maintenance costs) and
the cost of an equal amount of funds from an alternative source
having a similar term as the new deposit base. The core deposit
intangible will be amortized on a straight line basis over the
useful life of the deposits which is estimated at 8 years.
Goodwill is calculated as the amount of cash paid in excess of
the fair value of the net assets acquired in the
transaction.
When calculating capital ratios, goodwill and a portion of core
deposit intangibles are subtracted from Tier 1 capital. The
deduction for core deposit intangibles is subject to a phase in
period under the Basal III risk based capital rules. During 2016,
60% of the core deposit intangibles will be deducted from Tier 1
capital.
Core deposit intangibles and goodwill are subtracted from
tangible equity as part of the calculation of tangible book value
per share.
Forward-Looking Statements
This quarterly press release includes forward-looking
information, which is subject to the “safe harbor” created by the
Securities Act of 1933, and Securities Act of 1934. These
forward-looking statements (which involve our plans, beliefs and
goals, refer to estimates or use similar terms) involve certain
risks and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. Such risks
and uncertainties include, but are not limited to, the following
factors:
- Competitive pressure in the banking industry and changes in the
regulatory environment
- Changes in the interest rate environment and volatility of rate
sensitive assets and liabilities
- A decline in the health of the economy nationally or regionally
which could reduce the demand for loans or reduce the value of real
estate collateral securing most of our loans
- Credit quality deterioration which could cause an increase in
the provision for loan and lease losses
- Asset/Liability matching risks and liquidity risks
- Changes in the securities markets
- We may fail to realize all of the anticipated benefits of our
branch purchase.
For additional information concerning risks and uncertainties
related to the Company and its operations please refer to the
Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2015 and under the heading: “Risk Factors” and
subsequent reports on Form 10-Q and current reports on Form 8-K.
Readers are cautioned not to place undue reliance on these
forward-looking statements. The Company undertakes no obligation
and specifically disclaims any obligation, to revise or publicly
release the results of any revision or update to these
forward-looking statements to reflect events or circumstances that
occur after the date the statements were made.
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 1 |
SELECTED FINANCIAL INFORMATION -
UNAUDITED |
(amounts in thousands except per share
data) |
|
|
For The Three Months Ended |
Net income,
average assets and |
|
March 31, |
|
|
December 31, |
average shareholders' equity |
|
2016 |
|
|
2015 |
|
|
2015 |
(Loss) income available
to common shareholders |
|
$ |
|
(960 |
) |
|
|
$ |
1,751 |
|
|
$ |
1,729 |
|
Average total
assets |
|
$ |
|
1,034,203 |
|
|
|
$ |
978,916 |
|
|
$ |
1,005,870 |
|
Average shareholders'
equity |
|
$ |
|
91,307 |
|
|
|
$ |
104,618 |
|
|
$ |
105,417 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected performance ratios |
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets |
|
|
|
(0.37 |
) |
% |
|
|
0.73 |
% |
|
|
0.68 |
% |
Return on average
equity |
|
|
|
(4.23 |
) |
% |
|
|
6.79 |
% |
|
|
6.51 |
% |
Efficiency ratio |
|
|
|
108.08 |
|
% |
|
|
71.48 |
% |
|
|
73.58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and per share amounts |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
- basic |
|
|
|
13,360 |
|
|
|
|
13,303 |
|
|
|
13,341 |
|
Weighted average shares
- diluted |
|
|
|
13,403 |
|
|
|
|
13,340 |
|
|
|
13,395 |
|
(Loss) earnings per
share - basic |
|
$ |
|
(0.07 |
) |
|
|
$ |
0.13 |
|
|
$ |
0.13 |
|
(Loss) earnings per
share - diluted |
|
$ |
|
(0.07 |
) |
|
|
$ |
0.13 |
|
|
$ |
0.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At March 31, |
|
|
At December 31, |
Share and per share amounts |
|
2016 |
|
|
2015 |
|
|
2015 |
Common shares
outstanding (1) |
|
|
|
13,442 |
|
|
|
|
13,362 |
|
|
|
13,385 |
|
Tangible book value per
common share |
|
$ |
|
6.57 |
|
|
|
$ |
6.40 |
|
|
$ |
6.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital ratios |
|
|
|
|
|
|
|
|
|
|
|
Bank of Commerce
Holdings |
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1
capital ratio |
|
|
|
9.82 |
|
% |
|
|
9.73 |
% |
|
|
10.06 |
% |
Tier 1 capital ratio
(2) |
|
|
|
10.93 |
|
% |
|
|
13.10 |
% |
|
|
11.16 |
% |
Total capital ratio
(2) |
|
|
|
13.30 |
|
% |
|
|
14.35 |
% |
|
|
13.52 |
% |
Tier 1 leverage ratio
(2) |
|
|
|
9.48 |
|
% |
|
|
11.74 |
% |
|
|
10.03 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Redding Bank of
Commerce |
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1
capital ratio |
|
|
|
13.07 |
|
% |
|
|
13.05 |
% |
|
|
13.31 |
% |
Tier 1 capital
ratio |
|
|
|
13.07 |
|
% |
|
|
13.05 |
% |
|
|
13.31 |
% |
Total capital
ratio |
|
|
|
14.32 |
|
% |
|
|
14.30 |
% |
|
|
14.56 |
% |
Tier 1 leverage
ratio |
|
|
|
11.36 |
|
% |
|
|
11.73 |
% |
|
|
11.98 |
% |
(1)
Includes unvested restricted shares issued in accordance with the
Banks equity incentive plan. |
(2) The
Company and the Bank continue to meet all capital adequacy
requirements to which they are subject. The decline in the capital
ratios of Bank of Commerce Holdings as of March 31, 2016 compared
to March 31, 2015 is primarily due to the redemption of $20.0
million of preferred stock (Tier 1 capital) during the fourth
quarter of 2015. The $10.0 million of subordinated debt issued
during the fourth quarter of 2015 qualifies as Tier 2 capital under
the applicable capital adequacy rules and regulations promulgated
by the Federal Reserve. The capital ratios for the first quarter of
2016 were also impacted by the addition of $1.8 million of core
deposit intangibles and $717 thousand of goodwill recorded in
conjunction with the branch acquisition. |
|
BALANCE SHEET OVERVIEW
As of March 31, 2016, the Company had total consolidated assets
of $1.1 billion, gross loans of $724.2 million, allowance for loan
and lease losses (“ALLL”) of $11.5 million, total deposits of
$937.7 million, and shareholders’ equity of $90.7 million.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 2 |
LOAN BALANCES BY TYPE -
UNAUDITED |
(amounts in thousands) |
|
At March 31, |
|
|
|
|
|
|
At December 31, |
|
|
|
% of |
|
|
|
% of |
|
Change |
|
|
|
% of |
|
2016 |
|
Total |
|
2015 |
|
Total |
|
Amount |
|
% |
|
2015 |
|
Total |
Commercial |
$ |
|
136,721 |
|
|
19 |
% |
|
$ |
|
150,792 |
|
|
22 |
% |
|
$ |
|
(14,071 |
) |
|
|
(9 |
) |
% |
|
$ |
|
132,805 |
|
|
19 |
% |
Real estate -
construction and land development |
|
|
27,554 |
|
|
4 |
|
|
|
|
29,127 |
|
|
4 |
|
|
|
|
(1,573 |
) |
|
|
(5 |
) |
% |
|
|
|
28,319 |
|
|
4 |
|
Real estate -
commercial non-owner occupied |
|
|
247,840 |
|
|
34 |
|
|
|
|
234,198 |
|
|
33 |
|
|
|
|
13,642 |
|
|
|
6 |
|
% |
|
|
|
243,374 |
|
|
33 |
|
Real estate -
commercial owner occupied |
|
|
154,484 |
|
|
21 |
|
|
|
|
130,717 |
|
|
19 |
|
|
|
|
23,767 |
|
|
|
18 |
|
% |
|
|
|
156,299 |
|
|
22 |
|
Real estate -
residential - ITIN |
|
|
48,384 |
|
|
7 |
|
|
|
|
52,043 |
|
|
7 |
|
|
|
|
(3,659 |
) |
|
|
(7 |
) |
% |
|
|
|
49,106 |
|
|
7 |
|
Real estate -
residential - 1-4 family mortgage |
|
|
10,947 |
|
|
2 |
|
|
|
|
12,304 |
|
|
2 |
|
|
|
|
(1,357 |
) |
|
|
(11 |
) |
% |
|
|
|
11,390 |
|
|
2 |
|
Real estate -
residential - equity lines |
|
|
44,327 |
|
|
6 |
|
|
|
|
45,750 |
|
|
7 |
|
|
|
|
(1,423 |
) |
|
|
(3 |
) |
% |
|
|
|
45,473 |
|
|
6 |
|
Consumer and other |
|
|
53,986 |
|
|
7 |
|
|
|
|
44,298 |
|
|
6 |
|
|
|
|
9,688 |
|
|
|
22 |
|
% |
|
|
|
49,873 |
|
|
7 |
|
Gross loans |
|
|
724,243 |
|
|
100 |
% |
|
|
|
699,229 |
|
|
100 |
% |
|
|
|
25,014 |
|
|
|
4 |
|
% |
|
|
|
716,639 |
|
|
100 |
% |
Deferred fees and
costs |
|
|
985 |
|
|
|
|
|
|
|
315 |
|
|
|
|
|
|
|
670 |
|
|
|
|
|
|
|
870 |
|
|
|
|
Loans, net of deferred fees and
costs |
|
|
725,228 |
|
|
|
|
|
|
|
699,544 |
|
|
|
|
|
|
|
25,684 |
|
|
|
|
|
|
|
717,509 |
|
|
|
|
Allowance for loan and
lease losses |
|
|
(11,495 |
) |
|
|
|
|
|
|
(11,296 |
) |
|
|
|
|
|
|
(199 |
) |
|
|
|
|
|
|
(11,180 |
) |
|
|
|
Net loans |
$ |
|
713,733 |
|
|
|
|
|
$ |
|
688,248 |
|
|
|
|
|
$ |
|
25,485 |
|
|
|
|
|
$ |
|
706,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average yield on loans
during the quarter |
|
|
4.72 |
% |
|
|
|
|
|
|
4.77 |
% |
|
|
|
|
|
|
(0.05 |
) |
|
|
|
|
|
|
4.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company recorded gross loan balances of $724.2 million at
March 31, 2016, compared with $699.2 million and $716.6 million at
March 31, 2015 and December 31, 2015, respectively, an increase of
$25.0 million and $7.6 million, respectively. The increase in gross
loans compared to the same period a year ago and the prior period
was driven by organic loan originations. The increase in deferred
fees and costs from March 31, 2015 to March 31, 2016 was the result
of increased loan production and revised loan origination costs
based on an updated loan origination cost study.
The increase in the ALLL in the current quarter compared to the
prior quarter resulted from net loan loss recoveries of $315
thousand. As a result of these net recoveries and continued
improved asset quality, no provision for loan and lease losses was
deemed necessary during the current quarter or the past 4
consecutive quarters. See table 8 for additional detail of the
ALLL.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 3 |
CASH, CASH EQUIVALENTS, AND INVESTMENT
SECURITIES - UNAUDITED |
(amounts in thousands) |
|
|
At March 31, |
|
|
|
|
|
|
|
At December 31, |
|
|
|
|
% of |
|
|
|
% of |
|
Change |
|
|
|
% of |
|
|
2016 |
|
Total |
|
2015 |
|
Total |
|
Amount |
|
% |
|
2015 |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
|
$ |
|
14,969 |
|
|
5 |
% |
|
$ |
|
13,353 |
|
|
6 |
% |
|
$ |
|
1,616 |
|
|
|
12 |
|
% |
|
$ |
|
9,730 |
|
|
4 |
% |
Interest-bearing
deposits in other banks |
|
|
|
70,781 |
|
|
24 |
|
|
|
|
16,758 |
|
|
7 |
|
|
|
|
54,023 |
|
|
|
322 |
|
% |
|
|
|
41,462 |
|
|
17 |
|
Total cash and cash
equivalents |
|
|
|
85,750 |
|
|
29 |
|
|
|
|
30,111 |
|
|
13 |
|
|
|
|
55,639 |
|
|
|
185 |
|
% |
|
|
|
51,192 |
|
|
21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and
agencies |
|
|
|
3,915 |
|
|
1 |
|
|
|
|
6,422 |
|
|
3 |
|
|
|
|
(2,507 |
) |
|
|
(39 |
) |
% |
|
|
|
3,943 |
|
|
2 |
|
Obligations of state
and political subdivisions |
|
|
|
61,288 |
|
|
21 |
|
|
|
|
53,491 |
|
|
23 |
|
|
|
|
7,797 |
|
|
|
15 |
|
% |
|
|
|
61,104 |
|
|
25 |
|
Residential mortgage
backed securities and collateralized mortgage obligations |
|
|
|
51,721 |
|
|
18 |
|
|
|
|
41,851 |
|
|
18 |
|
|
|
|
9,870 |
|
|
|
24 |
|
% |
|
|
|
32,137 |
|
|
13 |
|
Corporate
securities |
|
|
|
23,764 |
|
|
8 |
|
|
|
|
31,660 |
|
|
14 |
|
|
|
|
(7,896 |
) |
|
|
(25 |
) |
% |
|
|
|
33,778 |
|
|
14 |
|
Commercial mortgage
backed securities |
|
|
|
14,571 |
|
|
5 |
|
|
|
|
6,799 |
|
|
3 |
|
|
|
|
7,772 |
|
|
|
114 |
|
% |
|
|
|
12,769 |
|
|
5 |
|
Other asset backed
securities |
|
|
|
18,992 |
|
|
6 |
|
|
|
|
26,667 |
|
|
11 |
|
|
|
|
(7,675 |
) |
|
|
(29 |
) |
% |
|
|
|
15,299 |
|
|
6 |
|
Total investment securities -
AFS |
|
|
|
174,251 |
|
|
59 |
|
|
|
|
166,890 |
|
|
72 |
|
|
|
|
7,361 |
|
|
|
4 |
|
% |
|
|
|
159,030 |
|
|
65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Obligations of state
and political subdivisions - HTM |
|
|
|
35,357 |
|
|
12 |
|
|
|
|
36,609 |
|
|
15 |
|
|
|
|
(1,252 |
) |
|
|
(3 |
) |
% |
|
|
|
35,899 |
|
|
14 |
|
Total investment securities - AFS
and HTM |
|
|
|
209,608 |
|
|
71 |
|
|
|
|
203,499 |
|
|
87 |
|
|
|
|
6,109 |
|
|
|
3 |
|
% |
|
|
|
194,929 |
|
|
79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash, cash
equivalents and investment securities |
|
$ |
|
295,358 |
|
|
100 |
% |
|
$ |
|
233,610 |
|
|
100 |
% |
|
$ |
|
61,748 |
|
|
|
26 |
|
% |
|
$ |
|
246,121 |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average yield on
interest bearing due from banks and investment securities during
the quarter |
|
|
|
2.35 |
% |
|
|
|
|
|
|
2.73 |
% |
|
|
|
|
|
|
(0.38 |
) |
|
|
|
|
|
|
2.51 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31, 2016, we maintained noninterest-bearing cash
positions at the Federal Reserve Bank and correspondent banks in
the amount of $15.0 million. We also held interest-bearing deposits
in the amount of $70.8 million. The sizeable increase in
interest-bearing deposits derives from liquidity provided by the
recent branch acquisition. It is anticipated that much of this
liquidity will be deployed into new loans over the remainder of the
year.
Available-for-sale investment securities totaled $174.3 million
at March 31, 2016, compared with $166.9 million and $159.0 million
at March 31, 2015 and December 31, 2015, respectively. Our
available-for-sale investment portfolio provides us with a
secondary source of liquidity to fund other higher yielding asset
opportunities, such as loan originations and wholesale loan
purchases. During the first quarter of 2016 we purchased 28
securities with a par value of $39.2 million and weighted average
yield of 2.24% and sold 17 securities with a par value of $18.8
million and weighted average yield of 2.38%. The sales activity
resulted in $94 thousand in net realized gains for the three months
ended March 31, 2016. During the same period, we received $3.0
million in proceeds from principal payments, calls and maturities
within the available-for-sale investment securities portfolio.
Average securities balances and weighted average tax equivalent
yields for the quarters ending March 31, 2016 and 2015 were $197.8
million and 3.42% compared to $213.9 million and 3.51%,
respectively.
During the current quarter, our securities transactions were
focused on deploying a portion of the cash acquired from the Bank
of America branch acquisition into moderate term securities.
Management continues to seek out opportunities to reduce the
overall effective duration of the portfolio and accelerate cash
flows, while also improving credit quality and liquidity. This
strategy could entail absorbing small losses and slightly reduced
yields within the portfolio to meet longer term objectives.
At March 31, 2016, our unrealized gains on available-for-sale
investment securities were $1.7 million compared with $3.1 million
and $1.6 million at March 31, 2015 and December 31, 2015,
respectively. The decrease in net unrealized gains between March
31, 2015 and March 31, 2016 is primarily due to interest rate
changes over the past 12 months.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 4 |
DEPOSITS BY TYPE - UNAUDITED |
(amounts in thousands) |
|
At March 31, |
|
|
|
|
|
|
|
At December 31, |
|
|
|
% of |
|
|
|
% of |
|
|
Change |
|
|
|
% of |
|
2016 |
|
Total |
|
2015 |
|
Total |
|
Amount |
|
% |
|
2015 |
|
Total |
Demand - noninterest
bearing |
$ |
|
212,758 |
|
|
23 |
% |
|
$ |
|
150,056 |
|
|
20 |
% |
|
$ |
|
62,702 |
|
|
|
42 |
|
% |
|
$ |
|
169,507 |
|
|
21 |
% |
Demand - interest
bearing |
|
|
392,325 |
|
|
42 |
|
|
|
|
266,552 |
|
|
35 |
|
|
|
|
125,773 |
|
|
|
47 |
|
% |
|
|
|
315,658 |
|
|
39 |
|
Total demand |
|
|
605,083 |
|
|
65 |
|
|
|
|
416,608 |
|
|
55 |
|
|
|
|
188,475 |
|
|
|
45 |
|
% |
|
|
|
485,165 |
|
|
60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
|
105,828 |
|
|
11 |
|
|
|
|
92,088 |
|
|
12 |
|
|
|
|
13,740 |
|
|
|
15 |
|
% |
|
|
|
94,503 |
|
|
12 |
|
Total non-maturing
deposits |
|
|
710,911 |
|
|
76 |
|
|
|
|
508,696 |
|
|
67 |
|
|
|
|
202,215 |
|
|
|
40 |
|
% |
|
|
|
579,668 |
|
|
72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of
deposit |
|
|
226,756 |
|
|
24 |
|
|
|
|
253,280 |
|
|
33 |
|
|
|
|
(26,524 |
) |
|
|
(10 |
) |
% |
|
|
|
224,067 |
|
|
28 |
|
Total deposits |
$ |
|
937,667 |
|
|
100 |
% |
|
$ |
|
761,976 |
|
|
100 |
% |
|
$ |
|
175,691 |
|
|
|
23 |
|
% |
|
$ |
|
803,735 |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rate on
interest bearing deposits during the quarter |
|
|
0.48 |
% |
|
|
|
|
|
|
0.50 |
% |
|
|
|
|
|
|
(0.02 |
) |
|
|
|
|
|
|
0.48 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits at March 31, 2016, increased $175.7 million or
23% to $937.7 million compared to March 31, 2015, and increased
$133.9 million or 17% compared to December 31, 2015. Total
non-maturing deposits increased $202.1 million or 40% compared to
the same date a year ago and increased $131.2 million or 23%
compared to December 31, 2015. Certificates of deposit decreased
$26.5 million or 10% compared to the same date a year ago and
increased $2.6 million or 1% compared to December 31, 2015.
During the first quarter of 2016 the branch acquisition provided
an additional $149.0 million of deposits and we called $17.5
million of brokered certificates of deposit. The average interest
rate paid during the quarter on all acquired deposits was 0.09% and
on the acquired interest bearing deposits was 0.11%. At March 31,
2016, the deposits in the acquired branches totaled $148.3 million
as follows:
|
|
• Demand – noninterest
bearing totaling $37.9 million. |
• Savings
totaling $9.6 million. |
• Demand – interest bearing
totaling $77.3 million. |
• Certificates of deposit totaling $23.5
million. |
|
|
|
|
|
|
|
|
|
TABLE 5 |
WHOLESALE AND BROKERED DEPOSITS -
UNAUDITED |
(amounts in thousands) |
|
At March 31, |
|
At December 31, |
|
2016 |
|
2015 |
|
2015 |
CDARS / ICS reciprocal
deposits |
$ |
61,601 |
|
$ |
52,767 |
|
$ |
76,919 |
Third party brokered
time deposits |
|
— |
|
|
17,498 |
|
|
17,509 |
Brokered deposits per
Call Report |
|
61,601 |
|
|
70,265 |
|
|
94,428 |
Online listing service
time deposits |
|
55,986 |
|
|
67,453 |
|
|
58,462 |
Total wholesale and
brokered deposits |
$ |
117,587 |
|
$ |
137,718 |
|
$ |
152,890 |
|
|
|
|
|
|
|
|
|
In accordance with regulatory Call Report instructions, the Bank
will file (or has filed) quarterly Call Reports which list brokered
deposits of $61.6 million, $70.3 million and $94.4 million at March
31, 2016, March 31, 2015 and December 31, 2015, respectively.
INCOME STATEMENT OVERVIEW
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 6 |
SUMMARY INCOME STATEMENT -
UNAUDITED |
(amounts in thousands, except per share
data) |
|
|
For The Three Months Ended |
|
|
March 31, |
|
Change |
|
December 31, |
|
Change |
|
|
2016 |
|
2015 |
|
Amount |
|
% |
|
2015 |
|
Amount |
|
% |
Interest income |
|
$ |
|
9,904 |
|
|
$ |
9,526 |
|
$ |
|
378 |
|
|
|
4 |
|
% |
|
$ |
9,732 |
|
$ |
|
172 |
|
|
|
2 |
|
% |
Interest expense |
|
|
|
1,600 |
|
|
|
1,157 |
|
|
|
443 |
|
|
|
38 |
|
% |
|
|
1,381 |
|
|
|
219 |
|
|
|
16 |
|
% |
Net interest
income |
|
|
|
8,304 |
|
|
|
8,369 |
|
|
|
(65 |
) |
|
|
(1 |
) |
% |
|
|
8,351 |
|
|
|
(47 |
) |
|
|
(1 |
) |
% |
Provision for loan and
lease losses |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0 |
|
% |
|
|
— |
|
|
|
— |
|
|
|
0 |
|
% |
Noninterest income |
|
|
|
949 |
|
|
|
854 |
|
|
|
95 |
|
|
|
11 |
|
% |
|
|
640 |
|
|
|
309 |
|
|
|
48 |
|
% |
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branch acquisition and balance
sheet reconfiguration costs |
|
|
|
2,795 |
|
|
|
— |
|
|
|
2,795 |
|
|
|
100 |
|
% |
|
|
347 |
|
|
|
2,448 |
|
|
|
705 |
|
% |
Other noninterest expense |
|
|
|
7,206 |
|
|
|
6,593 |
|
|
|
613 |
|
|
|
9 |
|
% |
|
|
6,269 |
|
|
|
937 |
|
|
|
15 |
|
% |
Income before provision
for income taxes |
|
|
|
(748 |
) |
|
|
2,630 |
|
|
|
(3,378 |
) |
|
|
(128 |
) |
% |
|
|
2,375 |
|
|
|
(3,123 |
) |
|
|
(131 |
) |
% |
Deferred tax asset
write-off |
|
|
|
363 |
|
|
|
— |
|
|
|
363 |
|
|
|
100 |
|
% |
|
|
— |
|
|
|
363 |
|
|
|
100 |
|
% |
Provision for income
taxes |
|
|
|
(151 |
) |
|
|
829 |
|
|
|
(980 |
) |
|
|
(118 |
) |
% |
|
|
505 |
|
|
|
(656 |
) |
|
|
(130 |
) |
% |
Net
income |
|
$ |
|
(960 |
) |
|
$ |
1,801 |
|
$ |
|
(2,761 |
) |
|
|
(153 |
) |
% |
|
$ |
1,870 |
|
|
|
(2,830 |
) |
|
|
(151 |
) |
% |
Less: Preferred stock
extinguishment costs |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0 |
|
% |
|
|
102 |
|
|
|
(102 |
) |
|
|
(100 |
) |
% |
Less: Preferred
dividends |
|
|
|
— |
|
|
|
50 |
|
|
|
(50 |
) |
|
|
(100 |
) |
% |
|
|
39 |
|
|
|
(39 |
) |
|
|
(100 |
) |
% |
Income
available to common shareholders |
|
$ |
|
(960 |
) |
|
$ |
1,751 |
|
$ |
|
(2,711 |
) |
|
|
(155 |
) |
% |
|
$ |
1,729 |
|
$ |
|
(2,689 |
) |
|
|
(156 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share |
|
$ |
|
(0.07 |
) |
|
$ |
0.13 |
|
$ |
|
(0.20 |
) |
|
|
(154 |
) |
% |
|
$ |
0.13 |
|
$ |
|
(0.20 |
) |
|
|
(2 |
) |
% |
Average basic
shares |
|
|
|
13,360 |
|
|
|
13,303 |
|
|
|
57 |
|
|
|
0 |
|
% |
|
|
13,341 |
|
|
|
19 |
|
|
|
0 |
|
% |
Diluted earnings per
share |
|
$ |
|
(0.07 |
) |
|
$ |
0.13 |
|
$ |
|
(0.20 |
) |
|
|
(154 |
) |
% |
|
$ |
0.13 |
|
$ |
|
(0.20 |
) |
|
|
(2 |
) |
% |
Average diluted
shares |
|
|
|
13,403 |
|
|
|
13,340 |
|
|
|
63 |
|
|
|
0 |
|
% |
|
|
13,395 |
|
|
|
8 |
|
|
|
0 |
|
% |
Dividends declared per
common share |
|
$ |
|
0.03 |
|
|
$ |
0.03 |
|
$ |
|
— |
|
|
|
0 |
|
% |
|
$ |
0.03 |
|
$ |
|
— |
|
|
|
0 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter of 2016 Compared With First Quarter of
2015
Net income available to common shareholders for the first
quarter of 2016 decreased $2.7 million over the first quarter of
2015 The difference is centered in branch acquisition and balance
sheet reconfiguration costs totaling $2.8 million along with the
write-off of a $363 thousand deferred tax asset.
Net Interest Income
Net interest income decreased $65 thousand over a year
previous.
Interest income for the three months ended March 31, 2016
increased $378 thousand or 4% to $9.9 million. Income from interest
and fees on loans and interest on interest bearing deposits due
from banks increased $544 thousand while interest on securities
decreased $166 thousand.
Interest expense for the first three months of 2016 increased
$443 thousand or 38% to $1.6 million. Interest expense on term debt
increased $433 thousand while all other interest expense on
deposits and lease liabilities increased only $10 thousand.
The significant increase in interest on term debt results from:
- Interest expense of $296 thousand incurred on $20.0 million of
new term debt issued during the fourth quarter of 2015.
- Interest expense on Federal Home Loan Bank of San Francisco
borrowings increased $137 thousand over a year previous due
increased net settlement expense associated with the active
interest rate swap.
Noninterest Income
Noninterest income for the three months ended March 31, 2016
increased $95 thousand compared to the same period a year ago.
During the first quarter of 2016 we recorded a $176 thousand gain
on payoff of a purchased impaired loan. Also, during the current
quarter we recorded net gains on sale of available-for-sale
investment securities of $94 thousand compared to net gains of $215
thousand for the same period a year ago.
Noninterest Expense
Aside from the branch acquisition and balance sheet
reconfiguration costs ($2.8 million) noninterest expense for the
three months ended March 31, 2016 increased $613 thousand compared
to the same period a year ago. The increase was primarily driven by
following negative items:
- Staff increases and salary adjustments totaling $402 thousand,
exclusive of our newly acquired offices.
- Salaries and benefits at our newly acquired offices totaling
$101 thousand.
- Change in employee vacation utilization/carryover policy
costing $203 thousand.
- Increased office and postage of $117 thousand.
The increase in noninterest expense compared to the same period
a year ago was partially offset by following positive items:
- Salary Continuation Plan savings of $186 thousand.
- The first quarter of 2015 included $147 thousand write-down of
a fixed asset.
Income Tax Provision
During the three months ended March 31, 2016, the Company
recorded an income tax benefit related to operating losses of $151
thousand and wrote-off a $363 thousand deferred tax asset; a net
expense of $212 thousand. This compared with income tax expense of
$829 thousand for the same period a year ago. Pre-tax income
for 2016 is projected to be less than in 2015, while permanent
deductions and tax credits are anticipated to remain relatively
unchanged resulting in a decrease in the effective tax rate for
2016. As a result, excluding the write-off of the $363 thousand
deferred tax asset, the Company’s effective tax rate decreased from
31.52% in 2015 to 20.19% during the current quarter.
The $363 thousand deferred tax asset written off during the
first quarter was associated with our investment in affordable
housing partnerships. The deferred tax asset represented the timing
difference between the book amortization of the investments and the
Bank’s share of the tax deductible losses incurred by the projects
reported on the partnerships’ Schedule K-1. In accordance with ASU
2014-01 effective for annual periods beginning after December 15,
2014, and interim periods within annual reporting periods beginning
after December 15, 2015, deferred tax treatment for these items is
not permissible under the proportional amortization method of
accounting.
First Quarter of 2016 Compared With Fourth Quarter of
2015
Net income available to common shareholders for the first
quarter of 2016 decreased $2.7 million over the fourth quarter of
2015.
The difference is centered in branch acquisition and balance
sheet reconfiguration costs totaling $2.8 million along with the
write-off of a $363 thousand deferred tax asset.
Net Interest Income
Net interest income decreased $47 thousand over the prior
quarter. Interest income for the three months ended March 31, 2016
increased $172 thousand or 2% to $9.9 million compared to the prior
quarter. Income from interest and fees on loans and interest on
interest bearing deposits due from banks increased $188 thousand
while interest on securities decreased $16 thousand.
Interest expense for the first three months of 2016 increased
$219 thousand or 16% to $1.6 million compared to the prior quarter.
Interest expense on term debt increased $210 thousand while all
other interest expense on deposits and lease liabilities increased
only $9 thousand. The significant increase in interest on
term debt was caused by the first full quarter of interest expense
on $20.0 million of term debt issued during December of 2015.
Noninterest Income
Noninterest income for the three months ended March 31, 2016
increased $309 thousand compared to the prior quarter. In addition
to the previously mentioned $176 thousand gain on full repayment of
an impaired loan, net gains recognized on the sale of
available-for-sale investment securities during the current quarter
increased by $64 thousand to $94 thousand compared to a $30
thousand net gain in the prior quarter.
Noninterest Expense
Aside from the branch acquisition and balance sheet
reconfiguration costs ($2.8 million) noninterest expense for the
three months ended March 31, 2016 increased $937 thousand compared
to the prior quarter. The increase was primarily driven by
following:
- Staff increases and salary adjustments totaling $223 thousand,
exclusive of our newly acquired offices.
- Increased payroll tax costs of $205 thousand, exclusive of our
newly acquired offices.
- Salaries and benefits at our newly acquired offices totaling
$101 thousand.
- Increased salaries for direct loan origination costs of $160
thousand.
- Change in employee vacation utilization/carryover policy
costing $113 thousand.
- Increased office and postage of $94 thousand.
Income Tax Provision
During the three months ended March 31, 2016, the Company
recorded an income tax benefit related to operating losses of $151
thousand and wrote-off a $363 thousand deferred tax asset; a net
expense of $212 thousand. This compared with income tax expense of
$505 thousand for the prior period. Excluding the write-off of the
$363 thousand deferred tax asset, the Company’s effective tax rate
decreased from 21.26% in 2015 to 20.19% during the current
quarter.
Earnings Per Share
Net losses per share available to common shareholders were $0.07
for the three months ended March 31, 2016 compared with net income
available to common shareholders per share of $0.13 for the same
period a year ago, and net income available to common shareholders
per share of $0.13 for the prior period. Earnings per share
decreased for the three months ended March 31, 2016 compared to the
same period a year ago primarily as a result of decreased net
income.
Compared to the prior quarter, current quarter earnings per
share available to common shareholders do not include preferred
stock dividends and preferred stock extinguishment costs on
preferred stock. All preferred stock was redeemed during the fourth
quarter of 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 7 |
NET INTEREST SPREAD AND MARGIN -
UNAUDITED |
(amounts in thousands) |
|
For The Three Months Ended |
|
March 31, |
|
Change |
|
December 31, |
|
Change |
|
2016 |
|
2015 |
|
Amount |
|
2015 |
|
Amount |
Tax equivalent yield on
average interest earning assets |
|
4.23 |
% |
|
|
4.37 |
% |
|
|
|
(0.14 |
) |
|
|
4.23 |
% |
|
|
|
0.00 |
|
Rate on average
interest bearing liabilities |
|
0.86 |
% |
|
|
0.66 |
% |
|
|
|
(0.20 |
) |
|
|
0.77 |
% |
|
|
|
(0.09 |
) |
Net interest spread -
tax equivalent basis |
|
3.37 |
% |
|
|
3.71 |
% |
|
|
|
(0.34 |
) |
|
|
3.46 |
% |
|
|
|
(0.09 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent yield on
average interest earning assets |
|
4.23 |
% |
|
|
4.37 |
% |
|
|
|
(0.14 |
) |
|
|
4.23 |
% |
|
|
|
0.00 |
|
Interest expense to
fund average earning assets |
|
0.66 |
% |
|
|
0.51 |
% |
|
|
|
0.15 |
|
|
|
0.58 |
% |
|
|
|
0.08 |
|
Net interest margin -
tax equivalent basis |
|
3.57 |
% |
|
|
3.86 |
% |
|
|
|
(0.29 |
) |
|
|
3.65 |
% |
|
|
|
(0.08 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield on average
interest earning assets |
|
4.10 |
% |
|
|
4.23 |
% |
|
|
|
(0.13 |
) |
|
|
4.10 |
% |
|
|
|
0.00 |
|
Rate on average
interest bearing liabilities |
|
0.66 |
% |
|
|
0.51 |
% |
|
|
|
0.15 |
|
|
|
0.58 |
% |
|
|
|
0.08 |
|
Net interest margin -
nominal |
|
3.44 |
% |
|
|
3.72 |
% |
|
|
|
(0.28 |
) |
|
|
3.52 |
% |
|
|
|
(0.08 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average earning
assets |
$ |
969,818 |
|
|
$ |
912,886 |
|
|
$ |
|
56,932 |
|
|
$ |
940,831 |
|
|
$ |
|
28,987 |
|
Average interest
bearing liabilities |
$ |
743,388 |
|
|
$ |
708,234 |
|
|
$ |
|
35,154 |
|
|
$ |
712,807 |
|
|
$ |
|
30,581 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The net interest margin (net interest income as a percentage of
average interest earning assets) on a fully tax-equivalent basis
was 3.57% for the three months ended March 31, 2016, a decrease of
29 basis points as compared to the same period a year ago. The
decrease in net interest margin resulted from a 14 basis point
decrease in tax-equivalent yield on average earning assets and a 15
basis point increase in interest expense to fund average earning
assets. The decrease in the tax equivalent yield on average earning
assets was primarily due to decreased yields in the securities
portfolio. The increased rate on average interest bearing
liabilities resulted from the interest on $20.0 million of new term
debt issued during the fourth quarter of 2015. Interest on this
debt totaled $296 thousand during the first quarter of 2016 and
reduced the net interest margin by 12 basis points.
The current quarter tax equivalent net interest margin of 3.57%
decreased eight basis points as compared to the prior quarter. This
was caused by the cost of new debt previously described partially
offset by decreased rates paid on interest bearing deposits.
During the first quarter of 2016, deposit balances increased
$175.7 million and $134.0 million compared to the same period a
year ago and the prior quarter respectively, primarily due to our
branch acquisition. Our overall cost of interest bearing deposits
decreased to 0.37% for the quarter ended March 31, 2016 from 0.40%
for the same period a year ago and from 0.38% for the prior
quarter.
Our future net interest margin will be enhanced by deploying the
remaining cash provided by these deposits into higher yielding
assets and by the elimination of our contractual interest payments
on $75.0 million Federal Home Loan Bank of San Francisco
borrowings.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 8 |
|
ALLOWANCE FOR LOAN AND LEASE LOSSES ROLL
FORWARD AND IMPAIRED LOAN TOTALS - UNAUDITED |
|
(amounts in thousands) |
|
|
For The Three Months Ended |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
2016 |
|
2015 |
|
2015 |
|
2015 |
|
2015 |
Beginning balance |
$ |
|
11,180 |
|
|
|
$ |
|
10,891 |
|
|
|
$ |
|
11,402 |
|
|
|
$ |
|
11,296 |
|
|
|
$ |
|
10,820 |
|
|
Provision for loan and
lease losses charged to expense |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
Loans charged off |
|
|
(307 |
) |
|
|
|
|
(707 |
) |
|
|
|
|
(779 |
) |
|
|
|
|
(711 |
) |
|
|
|
|
(179 |
) |
|
Loan loss
recoveries |
|
|
622 |
|
|
|
|
|
996 |
|
|
|
|
|
268 |
|
|
|
|
|
817 |
|
|
|
|
|
655 |
|
|
Ending balance |
$ |
|
11,495 |
|
|
|
$ |
|
11,180 |
|
|
|
$ |
|
10,891 |
|
|
|
$ |
|
11,402 |
|
|
|
$ |
|
11,296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At March 31, |
|
At December 31, |
|
At September 30, |
|
At June 30, |
|
At March 31, |
|
2016 |
|
2015 |
|
2015 |
|
2015 |
|
2015 |
Nonaccrual loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
|
2,563 |
|
|
|
$ |
|
1,994 |
|
|
|
$ |
|
2,506 |
|
|
|
$ |
|
3,170 |
|
|
|
$ |
|
3,908 |
|
|
Real estate -
commercial non-owner occupied |
|
|
1,197 |
|
|
|
|
|
5,488 |
|
|
|
|
|
5,154 |
|
|
|
|
|
6,532 |
|
|
|
|
|
7,103 |
|
|
Real estate -
commercial owner occupied |
|
|
1,190 |
|
|
|
|
|
1,071 |
|
|
|
|
|
1,928 |
|
|
|
|
|
1,079 |
|
|
|
|
|
1,079 |
|
|
Real estate -
residential - ITIN |
|
|
3,705 |
|
|
|
|
|
3,649 |
|
|
|
|
|
4,228 |
|
|
|
|
|
4,375 |
|
|
|
|
|
4,645 |
|
|
Real estate -
residential - 1-4 family mortgage |
|
|
1,742 |
|
|
|
|
|
1,775 |
|
|
|
|
|
1,669 |
|
|
|
|
|
1,693 |
|
|
|
|
|
1,720 |
|
|
Real estate -
residential - equity lines |
|
|
1,270 |
|
|
|
|
|
— |
|
|
|
|
|
23 |
|
|
|
|
|
24 |
|
|
|
|
|
24 |
|
|
Consumer and other |
|
|
31 |
|
|
|
|
|
32 |
|
|
|
|
|
33 |
|
|
|
|
|
34 |
|
|
|
|
|
34 |
|
|
Total nonaccrual
loans |
|
|
11,698 |
|
|
|
|
|
14,009 |
|
|
|
|
|
15,541 |
|
|
|
|
|
16,907 |
|
|
|
|
|
18,513 |
|
|
Accruing troubled debt
restructured loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
40 |
|
|
|
|
|
49 |
|
|
|
|
|
56 |
|
|
|
|
|
10 |
|
|
|
|
|
1,004 |
|
|
Real estate -
commercial non-owner occupied |
|
|
821 |
|
|
|
|
|
824 |
|
|
|
|
|
828 |
|
|
|
|
|
832 |
|
|
|
|
|
836 |
|
|
Real estate -
commercial owner occupied |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
849 |
|
|
|
|
|
854 |
|
|
Real estate -
residential - ITIN |
|
|
5,502 |
|
|
|
|
|
5,458 |
|
|
|
|
|
5,423 |
|
|
|
|
|
5,303 |
|
|
|
|
|
5,421 |
|
|
Real estate -
residential - equity lines |
|
|
553 |
|
|
|
|
|
558 |
|
|
|
|
|
563 |
|
|
|
|
|
569 |
|
|
|
|
|
574 |
|
|
Total accruing troubled
debt restructured loans |
|
|
6,916 |
|
|
|
|
|
6,889 |
|
|
|
|
|
6,870 |
|
|
|
|
|
7,563 |
|
|
|
|
|
8,689 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All other accruing
impaired loans |
|
|
488 |
|
|
|
|
|
492 |
|
|
|
|
|
494 |
|
|
|
|
|
530 |
|
|
|
|
|
533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired
loans |
$ |
|
19,102 |
|
|
|
$ |
|
21,390 |
|
|
|
$ |
|
22,905 |
|
|
|
$ |
|
25,000 |
|
|
|
$ |
|
27,735 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans outstanding
at period end |
$ |
|
724,243 |
|
|
|
$ |
|
716,639 |
|
|
|
$ |
|
718,533 |
|
|
|
$ |
|
699,774 |
|
|
|
$ |
|
699,229 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for
loan and lease losses as a percent of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans |
|
|
1.59 |
|
% |
|
|
|
1.56 |
|
% |
|
|
|
1.52 |
|
% |
|
|
|
1.63 |
|
% |
|
|
|
1.62 |
|
% |
Nonaccrual loans |
|
|
98.26 |
|
% |
|
|
|
79.81 |
|
% |
|
|
|
70.08 |
|
% |
|
|
|
67.44 |
|
% |
|
|
|
61.02 |
|
% |
Impaired loans |
|
|
60.18 |
|
% |
|
|
|
52.27 |
|
% |
|
|
|
47.55 |
|
% |
|
|
|
45.61 |
|
% |
|
|
|
40.73 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans to
gross loans |
|
|
1.62 |
|
% |
|
|
|
1.95 |
|
% |
|
|
|
2.16 |
|
% |
|
|
|
2.42 |
|
% |
|
|
|
2.65 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We realized net loan loss recoveries of $315 thousand in the
current quarter compared with net loan loss recoveries of $289
thousand in the prior quarter and net loan loss recoveries of $476
thousand for the same period a year ago.
We continue to monitor credit quality, and adjust the ALLL to
ensure that the ALLL is maintained at a level that is adequate to
cover estimated credit losses in the loan and lease portfolio. We
made no provision for loan and lease losses during the quarters
ended March 31, 2016, December 31, 2015 and March 31, 2015. Our
ALLL as a percentage of gross loans was 1.59% as of March 31, 2016
compared to 1.62% as of March 31, 2015 and 1.56% as of December 31,
2015. Based on the Bank’s ALLL methodology, which uses criteria
such as risk weighting and historical loss rates, and given the
ongoing improvements in asset quality, management believes the
Company’s ALLL is adequate at March 31, 2016. There is, however, no
assurance that future loan and lease losses will not exceed the
levels provided for in the ALLL and could possibly result in future
charges to the provision for loan and lease losses.
At March 31, 2016, the recorded investment in loans classified
as impaired totaled $19.1 million, with a corresponding valuation
allowance of $1.1 million compared to impaired loans of $27.7
million with a corresponding valuation allowance of $1.5 million at
March 31, 2015 and impaired loans of $21.4 million, with a
corresponding valuation allowance of $832 thousand at December 31,
2015. The valuation allowance on impaired loans represents the
impairment reserves on performing restructured loans, other
accruing loans, and nonaccrual loans.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 9 |
PERIOD END TROUBLED DEBT RESTRUCTURINGS -
UNAUDITED |
(amounts in thousands) |
|
|
At March 31, |
|
At December 31, |
|
At September 30, |
|
At June 30, |
|
At March 31, |
|
|
2016 |
|
2015 |
|
2015 |
|
2015 |
|
2015 |
Nonaccrual |
|
$ |
4,516 |
|
|
$ |
9,015 |
|
|
$ |
11,149 |
|
|
$ |
12,354 |
|
|
$ |
12,695 |
|
Accruing |
|
|
6,916 |
|
|
|
6,889 |
|
|
|
6,870 |
|
|
|
7,563 |
|
|
|
8,689 |
|
Total troubled debt
restructurings |
|
$ |
11,432 |
|
|
$ |
15,904 |
|
|
$ |
18,019 |
|
|
$ |
19,917 |
|
|
$ |
21,384 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of total
gross loans |
|
|
1.58 |
% |
|
|
2.22 |
% |
|
|
2.51 |
% |
|
|
2.85 |
% |
|
|
3.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans are reported as a troubled debt restructuring when we
grant a concession(s) to a borrower experiencing financial
difficulties that it would not otherwise consider. Examples of such
concessions include a reduction in the loan rate, forgiveness of
principal or accrued interest, extending the maturity date(s)
significantly, or providing a lower interest rate than would be
normally available for a transaction of similar risk. As a result
of these concessions, restructured loans are impaired as we will
not collect all amounts due, either principal or interest, in
accordance with the terms of the original loan agreement.
Impairment reserves on non-collateral dependent restructured loans
are measured by calculating the present value of expected future
cash flows of the restructured loans, discounted at the effective
interest rate of the original loan agreement. These impairment
reserves are recognized as a specific component to be provided for
in the ALLL.
There were no new troubled debt restructurings during the three
months ended March 31, 2016. As of March 31, 2016, we had 119
restructured loans that qualified as troubled debt restructurings,
of which 108 were performing according to their restructured
terms.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 10 |
NONPERFORMING ASSETS - UNAUDITED |
(amounts in thousands) |
|
|
At March 31, |
|
At December 31, |
|
At September 30, |
|
At June 30, |
|
At March 31, |
|
|
2016 |
|
2015 |
|
2015 |
|
2015 |
|
2015 |
Total nonaccrual
loans |
|
$ |
11,698 |
|
|
$ |
14,009 |
|
|
$ |
15,541 |
|
|
$ |
16,907 |
|
|
$ |
18,513 |
|
90 days past due and
still accruing |
|
|
— |
|
|
|
88 |
|
|
|
52 |
|
|
|
54 |
|
|
|
30 |
|
Total nonperforming
loans |
|
|
11,698 |
|
|
|
14,097 |
|
|
|
15,593 |
|
|
|
16,961 |
|
|
|
18,543 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other real estate
owned |
|
|
1,011 |
|
|
|
1,423 |
|
|
|
1,525 |
|
|
|
1,405 |
|
|
|
1,502 |
|
Total nonperforming
assets |
|
$ |
12,709 |
|
|
$ |
15,520 |
|
|
$ |
17,118 |
|
|
$ |
18,366 |
|
|
$ |
20,045 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to
gross loans |
|
|
1.62 |
% |
|
|
1.97 |
% |
|
|
2.17 |
% |
|
|
2.42 |
% |
|
|
2.65 |
% |
Nonperforming assets to
total assets |
|
|
1.18 |
% |
|
|
1.53 |
% |
|
|
1.73 |
% |
|
|
1.87 |
% |
|
|
2.03 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At March 31, 2016, March 31, 2015 and December 31, 2015, the
recorded investment in OREO was $1.0 million, $1.5 million and $1.4
million, respectively. The March 31, 2016 OREO balance consists of
six properties, of which three are 1-4 family residential real
estate in the amount of $306 thousand, two are nonfarm
nonresidential properties in the amount of $557 thousand and one is
an undeveloped commercial property in the amount of $147
thousand.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE
11 |
UNAUDITED
CONSOLIDATED |
BALANCE
SHEET |
(amounts in
thousands, except per share data) |
|
|
At March 31, |
|
At March 31, |
|
Change |
|
At December 31, |
|
|
2016 |
|
2015 |
|
$ |
|
% |
|
2015 |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
|
$ |
|
14,969 |
|
|
$ |
|
13,353 |
|
|
$ |
|
1,616 |
|
|
|
12 |
|
% |
|
$ |
|
9,730 |
|
Interest-bearing
deposits in other banks |
|
|
|
70,781 |
|
|
|
|
16,758 |
|
|
|
|
54,023 |
|
|
|
322 |
|
% |
|
|
|
41,462 |
|
Total cash and cash
equivalents |
|
|
|
85,750 |
|
|
|
|
30,111 |
|
|
|
|
55,639 |
|
|
|
185 |
|
% |
|
|
|
51,192 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
available-for-sale, at fair value |
|
|
|
174,251 |
|
|
|
|
166,890 |
|
|
|
|
7,361 |
|
|
|
4 |
|
% |
|
|
|
159,030 |
|
Securities
held-to-maturity, at amortized cost |
|
|
|
35,357 |
|
|
|
|
36,609 |
|
|
|
|
(1,252 |
) |
|
|
(3 |
) |
% |
|
|
|
35,899 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of deferred
fees and costs |
|
|
|
725,228 |
|
|
|
|
699,544 |
|
|
|
|
25,684 |
|
|
|
4 |
|
% |
|
|
|
717,509 |
|
Allowance for loan and
lease losses |
|
|
|
(11,495 |
) |
|
|
|
(11,296 |
) |
|
|
|
(199 |
) |
|
|
2 |
|
% |
|
|
|
(11,180 |
) |
Net loans |
|
|
|
713,733 |
|
|
|
|
688,248 |
|
|
|
|
25,485 |
|
|
|
4 |
|
% |
|
|
|
706,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises and equipment,
net |
|
|
|
15,494 |
|
|
|
|
11,903 |
|
|
|
|
3,591 |
|
|
|
30 |
|
% |
|
|
|
11,072 |
|
Other real estate
owned |
|
|
|
1,011 |
|
|
|
|
1,502 |
|
|
|
|
(491 |
) |
|
|
(33 |
) |
% |
|
|
|
1,423 |
|
Goodwill and core
deposit intangibles, net |
|
|
|
2,469 |
|
|
|
|
— |
|
|
|
|
2,469 |
|
|
|
100 |
|
% |
|
|
|
— |
|
Life insurance |
|
|
|
22,642 |
|
|
|
|
22,009 |
|
|
|
|
633 |
|
|
|
3 |
|
% |
|
|
|
22,485 |
|
Deferred taxes |
|
|
|
8,389 |
|
|
|
|
10,041 |
|
|
|
|
(1,652 |
) |
|
|
(16 |
) |
% |
|
|
|
9,760 |
|
Other assets |
|
|
|
17,987 |
|
|
|
|
18,089 |
|
|
|
|
(102 |
) |
|
|
(1 |
) |
% |
|
|
|
18,251 |
|
Total assets |
|
$ |
|
1,077,083 |
|
|
$ |
|
985,402 |
|
|
$ |
|
91,681 |
|
|
|
9 |
|
% |
|
$ |
|
1,015,441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand - noninterest
bearing |
|
$ |
|
212,758 |
|
|
$ |
|
150,056 |
|
|
$ |
|
62,702 |
|
|
|
42 |
|
% |
|
$ |
|
169,507 |
|
Demand - interest
bearing |
|
|
|
392,325 |
|
|
|
|
266,552 |
|
|
|
|
125,773 |
|
|
|
47 |
|
% |
|
|
|
315,658 |
|
Savings |
|
|
|
105,828 |
|
|
|
|
92,088 |
|
|
|
|
13,740 |
|
|
|
15 |
|
% |
|
|
|
94,503 |
|
Certificates of
deposit |
|
|
|
226,756 |
|
|
|
|
253,280 |
|
|
|
|
(26,524 |
) |
|
|
(10 |
) |
% |
|
|
|
224,067 |
|
Total deposits |
|
|
|
937,667 |
|
|
|
|
761,976 |
|
|
|
|
175,691 |
|
|
|
23 |
|
% |
|
|
|
803,735 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term debt |
|
|
|
19,839 |
|
|
|
|
90,000 |
|
|
|
|
(70,161 |
) |
|
|
(78 |
) |
% |
|
|
|
94,917 |
|
Unamortized debt
issuance costs |
|
|
|
(213 |
) |
|
|
|
— |
|
|
|
|
(213 |
) |
|
|
100 |
|
% |
|
|
|
(223 |
) |
Net term debt |
|
|
|
19,626 |
|
|
|
|
90,000 |
|
|
|
|
(70,374 |
) |
|
|
(78 |
) |
% |
|
|
|
94,694 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Junior subordinated
debentures |
|
|
|
10,310 |
|
|
|
|
10,310 |
|
|
|
|
— |
|
|
|
0 |
|
% |
|
|
|
10,310 |
|
Other liabilities |
|
|
|
18,762 |
|
|
|
|
17,679 |
|
|
|
|
1,083 |
|
|
|
6 |
|
% |
|
|
|
16,180 |
|
Total liabilities |
|
|
|
986,365 |
|
|
|
|
879,965 |
|
|
|
|
106,400 |
|
|
|
12 |
|
% |
|
|
|
924,919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
|
|
— |
|
|
|
|
19,931 |
|
|
|
|
(19,931 |
) |
|
|
(100 |
) |
% |
|
|
|
— |
|
Common stock |
|
|
|
24,325 |
|
|
|
|
24,105 |
|
|
|
|
220 |
|
|
|
1 |
|
% |
|
|
|
24,214 |
|
Retained earnings |
|
|
|
65,201 |
|
|
|
|
61,217 |
|
|
|
|
3,984 |
|
|
|
7 |
|
% |
|
|
|
66,562 |
|
Accumulated other comprehensive
income (loss), net of tax |
|
|
|
1,192 |
|
|
|
|
184 |
|
|
|
|
1,008 |
|
|
|
548 |
|
% |
|
|
|
(254 |
) |
Total shareholders' equity |
|
|
|
90,718 |
|
|
|
|
105,437 |
|
|
|
|
(14,719 |
) |
|
|
(14 |
) |
% |
|
|
|
90,522 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity |
|
$ |
|
1,077,083 |
|
|
$ |
|
985,402 |
|
|
$ |
|
91,681 |
|
|
|
9 |
|
% |
|
$ |
|
1,015,441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest earning
assets |
|
$ |
|
1,002,492 |
|
|
$ |
|
916,676 |
|
|
$ |
|
85,816 |
|
|
|
9 |
|
% |
|
$ |
|
952,212 |
|
Shares outstanding |
|
|
|
13,442 |
|
|
|
|
13,362 |
|
|
|
|
|
|
|
|
|
|
13,385 |
|
Tangible book value per
share |
|
$ |
|
6.57 |
|
|
$ |
|
6.40 |
|
|
|
|
|
|
|
|
$ |
|
6.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 12 |
UNAUDITED |
INCOME STATEMENT |
(amounts in thousands, except per share
data) |
|
|
For The Three Months Ended |
|
|
|
March 31, |
|
Change |
|
December 31, |
|
|
|
2016 |
|
2015 |
|
$ |
|
% |
|
2015 |
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
8,451 |
|
$ |
7,911 |
|
$ |
|
540 |
|
|
|
7 |
|
% |
|
$ |
8,299 |
|
Interest on securities |
|
|
784 |
|
|
945 |
|
|
|
(161 |
) |
|
|
(17 |
) |
% |
|
|
795 |
|
Interest on tax-exempt
securities |
|
|
594 |
|
|
599 |
|
|
|
(5 |
) |
|
|
(1 |
) |
% |
|
|
599 |
|
Interest on deposits in other
banks |
|
|
75 |
|
|
71 |
|
|
|
4 |
|
|
|
6 |
|
% |
|
|
39 |
|
Total interest
income |
|
|
9,904 |
|
|
9,526 |
|
|
|
378 |
|
|
|
4 |
|
% |
|
|
9,732 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on demand deposits |
|
|
122 |
|
|
116 |
|
|
|
6 |
|
|
|
5 |
|
% |
|
|
121 |
|
Interest on savings deposits |
|
|
45 |
|
|
54 |
|
|
|
(9 |
) |
|
|
(17 |
) |
% |
|
|
51 |
|
Interest on certificates of
deposit |
|
|
597 |
|
|
591 |
|
|
|
6 |
|
|
|
1 |
|
% |
|
|
585 |
|
Interest on term debt |
|
|
782 |
|
|
349 |
|
|
|
433 |
|
|
|
124 |
|
% |
|
|
572 |
|
Interest on other borrowings |
|
|
54 |
|
|
47 |
|
|
|
7 |
|
|
|
15 |
|
% |
|
|
52 |
|
Total interest
expense |
|
|
1,600 |
|
|
1,157 |
|
|
|
443 |
|
|
|
38 |
|
% |
|
|
1,381 |
|
Net interest
income |
|
|
8,304 |
|
|
8,369 |
|
|
|
(65 |
) |
|
|
(1 |
) |
% |
|
|
8,351 |
|
Provision for loan and
lease losses |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
0 |
|
% |
|
|
— |
|
Net interest income after provision
for loan and lease losses |
|
|
8,304 |
|
|
8,369 |
|
|
|
(65 |
) |
|
|
(1 |
) |
% |
|
|
8,351 |
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit
accounts |
|
|
72 |
|
|
49 |
|
|
|
23 |
|
|
|
47 |
|
% |
|
|
51 |
|
Payroll and benefit processing
fees |
|
|
160 |
|
|
148 |
|
|
|
12 |
|
|
|
8 |
|
% |
|
|
139 |
|
Earnings on cash surrender value -
life insurance |
|
|
156 |
|
|
165 |
|
|
|
(9 |
) |
|
|
(5 |
) |
% |
|
|
159 |
|
Gain (loss) on investment
securities, net |
|
|
94 |
|
|
215 |
|
|
|
(121 |
) |
|
|
(56 |
) |
% |
|
|
30 |
|
Other income |
|
|
467 |
|
|
277 |
|
|
|
190 |
|
|
|
69 |
|
% |
|
|
261 |
|
Total noninterest
income |
|
|
949 |
|
|
854 |
|
|
|
95 |
|
|
|
11 |
|
% |
|
|
640 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 12 - CONTINUED |
UNAUDITED |
INCOME STATEMENT |
(amounts in thousands, except per share
data) |
|
|
For The Three Months Ended |
|
|
|
March 31, |
|
Change |
|
December 31, |
|
|
|
2016 |
|
2015 |
|
$ |
|
% |
|
2015 |
|
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and related benefits |
|
|
|
4,229 |
|
|
|
3,910 |
|
|
|
319 |
|
|
|
8 |
|
% |
|
|
3,610 |
|
Occupancy and equipment |
|
|
|
789 |
|
|
|
734 |
|
|
|
55 |
|
|
|
7 |
|
% |
|
|
737 |
|
Write-down of other real estate
owned |
|
|
|
55 |
|
|
|
— |
|
|
|
55 |
|
|
|
100 |
|
% |
|
|
— |
|
Federal Deposit Insurance
Corporation insurance premium |
|
|
|
156 |
|
|
|
207 |
|
|
|
(51 |
) |
|
|
(25 |
) |
% |
|
|
173 |
|
Data processing fees |
|
|
|
304 |
|
|
|
242 |
|
|
|
62 |
|
|
|
26 |
|
% |
|
|
280 |
|
Professional service fees |
|
|
|
436 |
|
|
|
388 |
|
|
|
48 |
|
|
|
12 |
|
% |
|
|
461 |
|
Branch acquisition costs |
|
|
|
412 |
|
|
|
— |
|
|
|
412 |
|
|
|
100 |
|
% |
|
|
347 |
|
Loss on cancellation of interest
rate swap |
|
|
|
2,325 |
|
|
|
— |
|
|
|
2,325 |
|
|
|
100 |
|
% |
|
|
— |
|
Other expenses |
|
|
|
1,295 |
|
|
|
1,112 |
|
|
|
183 |
|
|
|
16 |
|
% |
|
|
1,008 |
|
Total noninterest
expense |
|
|
|
10,001 |
|
|
|
6,593 |
|
|
|
3,408 |
|
|
|
52 |
|
% |
|
|
6,616 |
|
Income before provision
for income taxes |
|
|
|
(748 |
) |
|
|
2,630 |
|
|
|
(3,378 |
) |
|
|
(128 |
) |
% |
|
|
2,375 |
|
Deferred tax asset
write-off |
|
|
|
363 |
|
|
|
— |
|
|
|
363 |
|
|
|
0 |
|
% |
|
|
— |
|
Provision for income
taxes |
|
|
|
(151 |
) |
|
|
829 |
|
|
|
(980 |
) |
|
|
(118 |
) |
% |
|
|
505 |
|
Net income |
|
$ |
|
(960 |
) |
|
$ |
1,801 |
|
$ |
|
(2,761 |
) |
|
|
(153 |
) |
% |
|
$ |
1,870 |
|
Less: Preferred stock
extinguishment costs |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
100 |
|
% |
|
|
102 |
|
Less: Preferred
dividends |
|
|
|
— |
|
|
|
50 |
|
|
|
(50 |
) |
|
|
(100 |
) |
% |
|
|
39 |
|
Income available to
common shareholders |
|
$ |
|
(960 |
) |
|
$ |
1,751 |
|
$ |
|
(2,711 |
) |
|
|
(155 |
) |
% |
|
$ |
1,729 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share |
|
$ |
|
(0.07 |
) |
|
$ |
0.13 |
|
$ |
|
(0.20 |
) |
|
|
(154 |
) |
% |
|
$ |
0.13 |
|
Average basic
shares |
|
|
|
13,360 |
|
|
|
13,303 |
|
|
|
57 |
|
|
|
0 |
|
% |
|
|
13,341 |
|
Diluted earnings per
share |
|
$ |
|
(0.07 |
) |
|
$ |
0.13 |
|
$ |
|
(0.20 |
) |
|
|
(154 |
) |
% |
|
$ |
0.13 |
|
Average diluted
shares |
|
|
|
13,403 |
|
|
|
13,340 |
|
|
|
63 |
|
|
|
0 |
|
% |
|
|
13,395 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 13 |
UNAUDITED CONDENSED CONSOLIDATED |
YEAR TO DATE AVERAGE BALANCE
SHEETS |
(amounts in thousands) |
|
For the Three Months Ended |
|
For the Twelve Months Ended |
|
|
March 31, |
|
March 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
2016 |
|
2015 |
|
2015 |
|
2014 |
|
2013 |
Earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
720,795 |
|
$ |
673,120 |
|
$ |
699,227 |
|
$ |
625,166 |
|
$ |
612,780 |
Taxable securities |
|
|
119,917 |
|
|
136,557 |
|
|
120,897 |
|
|
147,916 |
|
|
157,486 |
Tax exempt
securities |
|
|
77,852 |
|
|
77,316 |
|
|
77,089 |
|
|
83,973 |
|
|
92,854 |
Interest-bearing
deposits in other banks |
|
|
51,254 |
|
|
25,893 |
|
|
30,323 |
|
|
56,465 |
|
|
43,342 |
Average earning
assets |
|
|
969,818 |
|
|
912,886 |
|
|
927,536 |
|
|
913,520 |
|
|
906,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
|
|
12,301 |
|
|
10,295 |
|
|
11,220 |
|
|
11,246 |
|
|
10,624 |
Premises and equipment,
net |
|
|
12,384 |
|
|
12,195 |
|
|
11,552 |
|
|
12,105 |
|
|
10,337 |
Other assets |
|
|
39,700 |
|
|
43,540 |
|
|
42,423 |
|
|
36,936 |
|
|
26,431 |
Average total
assets |
|
$ |
1,034,203 |
|
$ |
978,916 |
|
$ |
992,731 |
|
$ |
973,807 |
|
$ |
953,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand - noninterest
bearing |
|
$ |
182,539 |
|
$ |
148,923 |
|
$ |
156,578 |
|
$ |
139,792 |
|
$ |
122,011 |
Demand - interest
bearing |
|
|
323,771 |
|
|
275,954 |
|
|
283,105 |
|
|
272,383 |
|
|
244,125 |
Savings |
|
|
96,027 |
|
|
91,152 |
|
|
92,659 |
|
|
91,108 |
|
|
92,502 |
Certificates of
deposit |
|
|
221,836 |
|
|
246,707 |
|
|
238,626 |
|
|
259,445 |
|
|
248,350 |
Total deposits |
|
|
824,173 |
|
|
762,736 |
|
|
770,968 |
|
|
762,728 |
|
|
706,988 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase
agreements |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
5,780 |
Term debt |
|
|
91,444 |
|
|
84,111 |
|
|
88,874 |
|
|
77,534 |
|
|
107,603 |
Junior subordinated
debentures |
|
|
10,310 |
|
|
10,310 |
|
|
10,310 |
|
|
15,239 |
|
|
15,465 |
Other liabilities |
|
|
16,969 |
|
|
17,141 |
|
|
16,588 |
|
|
15,934 |
|
|
11,825 |
Average total
liabilities |
|
|
942,896 |
|
|
874,298 |
|
|
886,740 |
|
|
871,435 |
|
|
847,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity |
|
|
91,307 |
|
|
104,618 |
|
|
105,991 |
|
|
102,372 |
|
|
106,193 |
Average liabilities
& shareholders' equity |
|
$ |
1,034,203 |
|
$ |
978,916 |
|
$ |
992,731 |
|
$ |
973,807 |
|
$ |
953,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 14 |
UNAUDITED CONDENSED CONSOLIDATED |
QUARTERLY AVERAGE BALANCE SHEETS |
(amounts in thousands) |
|
|
For The Three Months Ended |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
|
2016 |
|
2015 |
|
2015 |
|
2015 |
|
2015 |
Earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
720,795 |
|
$ |
714,494 |
|
$ |
705,762 |
|
$ |
703,008 |
|
$ |
673,120 |
Taxable securities |
|
|
119,917 |
|
|
111,098 |
|
|
115,165 |
|
|
121,110 |
|
|
136,557 |
Tax exempt
securities |
|
|
77,852 |
|
|
78,081 |
|
|
76,190 |
|
|
76,772 |
|
|
77,316 |
Interest-bearing
deposits in other banks |
|
|
51,254 |
|
|
37,158 |
|
|
30,430 |
|
|
27,688 |
|
|
25,893 |
Average earning
assets |
|
|
969,818 |
|
|
940,831 |
|
|
927,547 |
|
|
928,578 |
|
|
912,886 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
|
|
12,301 |
|
|
12,372 |
|
|
11,355 |
|
|
10,833 |
|
|
10,295 |
Premises and equipment,
net |
|
|
12,384 |
|
|
11,001 |
|
|
11,265 |
|
|
11,767 |
|
|
12,195 |
Other assets |
|
|
39,700 |
|
|
41,666 |
|
|
41,867 |
|
|
42,637 |
|
|
43,540 |
Average total
assets |
|
$ |
1,034,203 |
|
$ |
1,005,870 |
|
$ |
992,034 |
|
$ |
993,815 |
|
$ |
978,916 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand - noninterest
bearing |
|
$ |
182,539 |
|
$ |
171,449 |
|
$ |
158,232 |
|
$ |
147,442 |
|
$ |
148,923 |
Demand - interest
bearing |
|
|
323,771 |
|
|
302,862 |
|
|
284,508 |
|
|
268,784 |
|
|
275,954 |
Savings |
|
|
96,027 |
|
|
92,939 |
|
|
93,230 |
|
|
93,291 |
|
|
91,152 |
Certificates of
deposit |
|
|
221,836 |
|
|
226,924 |
|
|
235,551 |
|
|
245,573 |
|
|
246,707 |
Total deposits |
|
|
824,173 |
|
|
794,174 |
|
|
771,521 |
|
|
755,090 |
|
|
762,736 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term debt |
|
|
91,444 |
|
|
79,772 |
|
|
86,359 |
|
|
105,330 |
|
|
84,111 |
Junior subordinated
debentures |
|
|
10,310 |
|
|
10,310 |
|
|
10,310 |
|
|
10,310 |
|
|
10,310 |
Other liabilities |
|
|
16,969 |
|
|
16,197 |
|
|
16,140 |
|
|
16,887 |
|
|
17,141 |
Average total
liabilities |
|
|
942,896 |
|
|
900,453 |
|
|
884,330 |
|
|
887,617 |
|
|
874,298 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity |
|
|
91,307 |
|
|
105,417 |
|
|
107,704 |
|
|
106,198 |
|
|
104,618 |
Average liabilities
& shareholders' equity |
|
$ |
1,034,203 |
|
$ |
1,005,870 |
|
$ |
992,034 |
|
$ |
993,815 |
|
$ |
978,916 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
About Bank of Commerce Holdings
Bank of Commerce Holdings is a bank holding company
headquartered in Redding, California and is the parent company for
Redding Bank of Commerce which operates under two separate names:
Redding Bank of Commerce and Sacramento Bank of Commerce, a
division of Redding Bank of Commerce. The Bank is an FDIC insured
California banking corporation providing commercial banking and
financial services through four offices located in Northern
California. The Bank opened on October 22, 1982. The Company’s
common stock is listed on the NASDAQ Global Market and trades under
the symbol “BOCH”.
|
|
Investment firms making a
market in BOCH stock are: |
|
|
Raymond James Financial John T. Cavender 555
Market StreetSan Francisco, CA 94105(800) 346-5544 |
Stifel
NicolausPerry Wright1255 East Street, Suite 100Redding, CA 96001
(530) 244-7199 |
|
|
Contact Information:
Randall S. Eslick, President and Chief Executive Officer
Telephone Direct (530) 722-3900
Samuel D. Jimenez, Executive Vice President and Chief Operating Officer
Telephone Direct (530) 722-3952
James A. Sundquist, Executive Vice President and Chief Financial Officer
Telephone Direct (530) 722-3908
Andrea Schneck, Vice President and Senior Administrative Officer
Telephone Direct (530) 722-3959
Bank of Commerce (NASDAQ:BOCH)
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