Bank of Commerce Holdings (NASDAQ:BOCH)
(the “Company”), a $1.2 billion asset bank holding
company and parent company of Redding Bank of Commerce (the
“Bank”), today announced financial results for the quarter and the
nine months ended September 30, 2017. Net income for the quarter
ended September 30, 2017 was $2.9 million or $0.18 per share –
diluted, compared with net income of $2.4 million or $0.18 per
share – diluted for the same period of 2016. Net income for the
nine months ended September 30, 2017 was $7.3 million or $0.49 per
share – diluted compared with $3.0 million or $0.22 per share –
diluted for the same period of 2016. Earnings per share (EPS) and
Return on Average Equity (ROAE) calculations for 2017 reflect the
Company’s issuance of 2,738,096 shares ($26.8 million) in its May
2017 public offering.
Financial highlights for the third quarter of
2017:
- Net income of $2.9 million or $0.18 per share – diluted for the
three months ended September 30, 2017 was an increase of $510
thousand (22%) from $2.4 million or $0.18 per share – diluted
earned during the same period in the prior year.
- Return on average assets improved to 0.93% for the third
quarter of 2017 compared to 0.86% for the same period in the prior
year.
- Return on average equity declined to 9.01% for the third
quarter of 2017 compared to 10.10% for the same period in the prior
year.
- The Company’s efficiency ratio was 62.8% for the third quarter
of 2017 compared to 69.6% during the same period in 2016.
- Net interest income increased $1.3 million (14%) to $10.6
million for the third quarter of 2017 compared to $9.3 million for
the same period in the prior year.
- Average deposits for the three months ended September 30, 2017
totaled $1.1 billion, an increase of $38.8 million (15% annualized)
compared to average deposits for the prior quarter.
- Average loans for the three months ended September 30, 2017
totaled $805.1 million, a decrease of $16.2 million (8% annualized)
compared to average loans for the prior quarter.
- Average earning assets for the three months ended September 30,
2017 totaled $1.1 billion, an increase of $48.5 million (18%
annualized) compared to average earning assets for the prior
quarter.
- Nonperforming assets at September 30, 2017 totaled $8.3 million
or 0.67% of total assets, a decrease of $2.4 million (89%
annualized) since June 30, 2017.
- Tangible book value per common share was $7.77 at September 30,
2017 compared to $7.61 at June 30, 2017.
Financial highlights for the nine months ended September
30, 2017:
- Net income of $7.3 million or $0.49 per share – diluted for the
nine months ended September 30, 2017 was an increase of $4.4
million (148%) from $3.0 million or $0.22 per share – diluted
earned during the same period in the prior year. Net income for
2016 was negatively impacted by $3.0 million of branch acquisition
and balance sheet restructuring costs, a $546 thousand
other-than-temporary-impairment of an investment security and the
write-off of a $363 thousand deferred tax asset.
- Return on average assets improved to 0.83% for the nine months
ended September 30, 2017 compared to 0.37% for the same period in
the prior year.
- Return on average equity improved to 8.80% for the nine months
ended September 30, 2017 compared to 4.30% for the same period in
the prior year.
- The Company’s efficiency ratio was 67.8% for the nine months
ended September 30, 2017 compared to 85.1% during the same period
in the prior year.
- Net interest income increased $3.7 million (14%) to $30.5
million for the nine months ended September 30, 2017 compared to
$26.8 million for the same period in the prior year.
- Average deposits for the nine months ended September 30, 2017
totaled $1.0 billion, an increase of $122.3 million (14%) compared
to average deposits for the same period in the prior year.
- Average loans for the nine months ended September 30, 2017
totaled $811.1 million, an increase of $66.7 million (9%) compared
to average loans for the same period in the prior year.
- Average earning assets totaled $1.1 billion for the nine months
ended September 30, 2017, an increase of $113.4 million (11%)
compared to average earning assets for the same period in the prior
year.
- Nonperforming assets at September 30, 2017 totaled $8.3 million
or 0.67% of total assets, a decrease of $3.8 million (42%
annualized) compared to December 31, 2016.
Randall S. Eslick, President and CEO commented: “We are very
pleased to report that the period ended September 30, 2017 was our
most profitable quarter. The hard work of our dedicated employees
is reflected in our performance metrics, including the solid return
on average assets, continued growth in core deposits, reduced
reliance on time deposits, improved asset quality and the
noticeably improved efficiency ratio.”
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
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, 2016 under the heading “Risk Factors” and to
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.
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TABLE 1 |
|
SELECTED FINANCIAL INFORMATION -
UNAUDITED |
|
(amounts in thousands except per share
data) |
|
|
|
For The Three Months Ended |
|
For The Nine Months Ended |
|
Net income,
average assets and |
|
September 30, |
|
|
June 30, |
|
September 30, |
|
average shareholders' equity |
|
2017 |
|
|
2016 |
|
|
2017 |
|
2017 |
|
2016 |
|
Net income |
|
$ |
2,876 |
|
|
$ |
2,366 |
|
|
$ |
2,209 |
|
|
$ |
7,337 |
|
$ |
2,962 |
|
Average total
assets |
|
$ |
1,220,900 |
|
|
$ |
1,093,918 |
|
|
$ |
1,170,447 |
|
|
$ |
1,180,150 |
|
$ |
1,064,210 |
|
Average total earning
assets |
|
$ |
1,146,132 |
|
|
$ |
1,019,230 |
|
|
$ |
1,097,644 |
|
|
$ |
1,106,532 |
|
$ |
993,156 |
|
Average shareholders'
equity |
|
$ |
126,574 |
|
|
$ |
93,238 |
|
|
$ |
112,855 |
|
|
$ |
111,533 |
|
$ |
91,959 |
|
|
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Selected performance ratios |
|
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|
|
|
Return on average
assets |
|
|
0.93 |
% |
|
|
0.86 |
% |
|
|
0.76 |
% |
|
|
0.83 |
% |
|
0.37 |
% |
Return on average
equity |
|
|
9.01 |
% |
|
|
10.10 |
% |
|
|
7.85 |
% |
|
|
8.80 |
% |
|
4.30 |
% |
Efficiency ratio |
|
|
62.84 |
% |
|
|
69.61 |
% |
|
|
69.13 |
% |
|
|
67.77 |
% |
|
85.08 |
% |
|
|
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Share and per share amounts |
|
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|
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|
|
|
|
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|
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|
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|
|
|
Weighted average shares
- basic |
|
|
16,191 |
|
|
|
13,369 |
|
|
|
15,014 |
|
|
|
14,884 |
|
|
13,366 |
|
Weighted average shares
- diluted |
|
|
16,288 |
|
|
|
13,439 |
|
|
|
15,113 |
|
|
|
14,984 |
|
|
13,412 |
|
Earnings per share -
basic |
|
$ |
0.18 |
|
|
$ |
0.18 |
|
|
$ |
0.15 |
|
|
$ |
0.49 |
|
$ |
0.22 |
|
Earnings per share -
diluted |
|
$ |
0.18 |
|
|
$ |
0.18 |
|
|
$ |
0.15 |
|
|
$ |
0.49 |
|
$ |
0.22 |
|
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At September 30, |
|
|
At June 30, |
|
|
|
Share and per share amounts |
|
2017 |
|
2016 |
|
2017 |
|
|
|
|
|
Common shares
outstanding (1) |
|
|
16,265 |
|
|
|
13,439 |
|
|
|
16,260 |
|
|
|
|
|
|
|
|
Tangible book value per
common share |
|
$ |
7.77 |
|
|
$ |
6.84 |
|
|
$ |
7.61 |
|
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Capital ratios |
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Bank of Commerce
Holdings (2) |
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Common equity tier 1
capital ratio (3) |
|
|
12.66 |
% |
|
|
9.60 |
% |
|
|
12.55 |
% |
|
|
|
|
|
|
|
Tier 1 capital ratio
(3) |
|
|
13.65 |
% |
|
|
10.65 |
% |
|
|
13.56 |
% |
|
|
|
|
|
|
|
Total capital ratio
(3) |
|
|
15.91 |
% |
|
|
12.96 |
% |
|
|
15.83 |
% |
|
|
|
|
|
|
|
Tier 1 leverage ratio
(3) |
|
|
11.12 |
% |
|
|
9.28 |
% |
|
|
11.38 |
% |
|
|
|
|
|
|
|
Tangible common equity
ratio |
|
|
10.27 |
% |
|
|
8.30 |
% |
|
|
10.23 |
% |
|
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|
Redding Bank of
Commerce |
|
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|
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|
Common equity tier 1
capital ratio (3) |
|
|
12.87 |
% |
|
|
12.62 |
% |
|
|
12.66 |
% |
|
|
|
|
|
|
|
Tier 1 capital ratio
(3) |
|
|
12.87 |
% |
|
|
12.62 |
% |
|
|
12.66 |
% |
|
|
|
|
|
|
|
Total capital ratio
(3) |
|
|
14.12 |
% |
|
|
13.87 |
% |
|
|
13.91 |
% |
|
|
|
|
|
|
|
Tier 1 leverage ratio
(3) |
|
|
10.50 |
% |
|
|
11.03 |
% |
|
|
10.64 |
% |
|
|
|
|
|
|
|
(1)
Includes unvested restricted shares issued in accordance with the
Company's equity incentive plan. |
(2)
Capital Ratios for the Company include the benefit of $26.8 million
net proceeds from the sale of 2,738,096 shares of common stock in
the second quarter of 2017. |
(3) The
Company and the Bank continue to meet all capital adequacy
requirements to which they are subject. The capital ratios for 2016
were impacted by increased average total assets, the addition of
$1.8 million of core deposit intangible and $665 thousand of
goodwill recorded in conjunction with the acquisition of five
branches in March of 2016. |
BALANCE SHEET OVERVIEW
As of September 30, 2017, the Company had total consolidated
assets of $1.2 billion, gross loans of $824.9 million, allowance
for loan and lease losses (“ALLL”) of $11.7 million, total deposits
of $1.1 billion, and shareholders’ equity of $128.4 million.
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TABLE 2 |
LOAN BALANCES BY TYPE -
UNAUDITED |
(amounts in thousands) |
|
At September 30, |
|
|
|
|
|
|
At June 30, |
|
|
|
% of |
|
|
|
% of |
|
Change |
|
|
|
% of |
|
2017 |
|
Total |
|
2016 |
|
Total |
|
Amount |
|
% |
|
2017 |
|
Total |
Commercial |
$ |
147,212 |
|
|
18 |
% |
|
$ |
136,235 |
|
|
17 |
% |
|
$ |
10,977 |
|
|
8 |
|
% |
|
$ |
152,204 |
|
|
19 |
% |
Real estate -
construction and land development |
|
14,700 |
|
|
2 |
|
|
|
31,225 |
|
|
4 |
|
|
|
(16,525 |
) |
|
(53 |
) |
% |
|
|
22,275 |
|
|
3 |
|
Real estate -
commercial non-owner occupied |
|
333,766 |
|
|
40 |
|
|
|
283,668 |
|
|
36 |
|
|
|
50,098 |
|
|
18 |
|
% |
|
|
310,995 |
|
|
38 |
|
Real estate -
commercial owner occupied |
|
183,424 |
|
|
22 |
|
|
|
175,923 |
|
|
23 |
|
|
|
7,501 |
|
|
4 |
|
% |
|
|
184,868 |
|
|
23 |
|
Real estate -
residential - ITIN |
|
42,063 |
|
|
5 |
|
|
|
46,458 |
|
|
6 |
|
|
|
(4,395 |
) |
|
(9 |
) |
% |
|
|
43,229 |
|
|
5 |
|
Real estate -
residential - 1-4 family mortgage |
|
21,119 |
|
|
3 |
|
|
|
16,665 |
|
|
2 |
|
|
|
4,454 |
|
|
27 |
|
% |
|
|
18,904 |
|
|
2 |
|
Real estate -
residential - equity lines |
|
31,158 |
|
|
4 |
|
|
|
36,468 |
|
|
5 |
|
|
|
(5,310 |
) |
|
(15 |
) |
% |
|
|
32,133 |
|
|
4 |
|
Consumer and other |
|
51,432 |
|
|
6 |
|
|
|
52,377 |
|
|
7 |
|
|
|
(945 |
) |
|
(2 |
) |
% |
|
|
50,780 |
|
|
6 |
|
Gross
loans |
|
824,874 |
|
|
100 |
% |
|
|
779,019 |
|
|
100 |
% |
|
|
45,855 |
|
|
6 |
|
% |
|
|
815,388 |
|
|
100 |
% |
Deferred fees and
costs |
|
1,770 |
|
|
|
|
|
|
1,155 |
|
|
|
|
|
|
615 |
|
|
|
|
|
|
1,541 |
|
|
|
|
Loans,
net of deferred fees and costs |
|
826,644 |
|
|
|
|
|
|
780,174 |
|
|
|
|
|
|
46,470 |
|
|
|
|
|
|
816,929 |
|
|
|
|
Allowance for loan and
lease losses |
|
(11,692 |
) |
|
|
|
|
|
(11,849 |
) |
|
|
|
|
|
157 |
|
|
|
|
|
|
(11,688 |
) |
|
|
|
Net
loans |
$ |
814,952 |
|
|
|
|
|
$ |
768,325 |
|
|
|
|
|
$ |
46,627 |
|
|
|
|
|
$ |
805,241 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average yield on loans
during the quarter |
|
4.87 |
% |
|
|
|
|
|
4.66 |
% |
|
|
|
|
|
0.21 |
|
|
|
|
|
|
4.77 |
% |
|
|
|
The Company recorded gross loan balances of $824.9 million at
September 30, 2017, compared with $779.0 million and $815.4 million
at September 30, 2016 and June 30, 2017, respectively, an increase
of $45.9 million and $9.5 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 and is the result of
investments in our SBA division and in our expanded Sacramento
commercial banking group.
Average loan balances were $805.1 million for the quarter ended
September 30, 2017, compared with $769.4 million and $821.3 million
for the quarters ended September 30, 2016 and June 30,2017,
respectively, an increase of $35.8 million or 5% and a decrease of
$16.2 million or 8% annualized, respectively.
The average yield on loans during the quarter was 4.87% compared
to 4.66% and 4.77% for the quarters ended September 30, 2016 and
June 30, 2017, respectively. The current quarter yield
includes $161 thousand of interest income related to a nonaccrual
loan that was repaid during the quarter.
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TABLE 3 |
CASH, CASH EQUIVALENTS, AND INVESTMENT
SECURITIES - UNAUDITED |
(amounts in thousands) |
|
|
At September 30, |
|
|
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|
|
|
|
At June 30, |
|
|
|
|
% of |
|
|
|
% of |
|
Change |
|
|
|
% of |
|
|
2017 |
|
Total |
|
2016 |
|
Total |
|
Amount |
|
% |
|
2017 |
|
Total |
|
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|
|
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|
|
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|
|
Cash and due from
banks |
|
$ |
19,929 |
|
|
6 |
% |
|
$ |
19,699 |
|
|
7 |
% |
|
$ |
230 |
|
|
1 |
|
% |
|
$ |
23,420 |
|
|
7 |
% |
Interest-bearing
deposits in other banks |
|
|
65,702 |
|
|
19 |
|
|
|
65,431 |
|
|
24 |
|
|
|
271 |
|
|
— |
|
% |
|
|
73,434 |
|
|
22 |
|
Total
cash and cash equivalents |
|
|
85,631 |
|
|
25 |
|
|
|
85,130 |
|
|
31 |
|
|
|
501 |
|
|
1 |
|
% |
|
|
96,854 |
|
|
29 |
|
|
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Investment
securities: |
|
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|
U.S. government and
agencies |
|
|
36,474 |
|
|
10 |
|
|
|
5,527 |
|
|
2 |
|
|
|
30,947 |
|
|
560 |
|
% |
|
|
24,231 |
|
|
7 |
|
Obligations of state
and political subdivisions |
|
|
53,850 |
|
|
15 |
|
|
|
59,952 |
|
|
22 |
|
|
|
(6,102 |
) |
|
(10 |
) |
% |
|
|
58,400 |
|
|
17 |
|
Residential mortgage
backed securities and collateralized mortgage obligations |
|
|
105,224 |
|
|
31 |
|
|
|
54,046 |
|
|
20 |
|
|
|
51,178 |
|
|
95 |
|
% |
|
|
91,375 |
|
|
28 |
|
Corporate
securities |
|
|
6,968 |
|
|
2 |
|
|
|
16,346 |
|
|
6 |
|
|
|
(9,378 |
) |
|
(57 |
) |
% |
|
|
8,312 |
|
|
2 |
|
Commercial mortgage
backed securities |
|
|
26,148 |
|
|
7 |
|
|
|
16,254 |
|
|
6 |
|
|
|
9,894 |
|
|
61 |
|
% |
|
|
23,421 |
|
|
7 |
|
Other asset backed
securities |
|
|
3,830 |
|
|
1 |
|
|
|
4,315 |
|
|
2 |
|
|
|
(485 |
) |
|
(11 |
) |
% |
|
|
3,870 |
|
|
1 |
|
Total
investment securities - AFS |
|
|
232,494 |
|
|
66 |
|
|
|
156,440 |
|
|
58 |
|
|
|
76,054 |
|
|
49 |
|
% |
|
|
209,609 |
|
|
62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Obligations of state
and political subdivisions - HTM |
|
|
30,724 |
|
|
9 |
|
|
|
31,771 |
|
|
11 |
|
|
|
(1,047 |
) |
|
(3 |
) |
% |
|
|
31,329 |
|
|
9 |
|
Total
investment securities - AFS and HTM |
|
|
263,218 |
|
|
75 |
|
|
|
188,211 |
|
|
69 |
|
|
|
75,007 |
|
|
40 |
|
% |
|
|
240,938 |
|
|
71 |
|
Total cash, cash
equivalents and investment securities |
|
$ |
348,849 |
|
|
100 |
% |
|
$ |
273,341 |
|
|
100 |
% |
|
$ |
75,508 |
|
|
28 |
|
% |
|
$ |
337,792 |
|
|
100 |
% |
Average yield on
interest-bearing due from banks and investment securities during
the quarter |
|
|
2.19 |
% |
|
|
|
|
|
2.11 |
% |
|
|
|
|
|
0.08 |
|
|
|
|
|
|
2.27 |
% |
|
|
|
As of September 30, 2017, we maintained noninterest-bearing cash
positions of $19.9 million and interest-bearing deposits of $65.7
million at the Federal Reserve Bank and correspondent banks. During
the third quarter of 2017, we deployed liquidity provided by the
sale of common stock and strong organic deposit growth into organic
loan originations, available-for-sale securities and
interest-bearing deposits at other banks.
Available-for-sale investment securities totaled $232.5 million
at September 30, 2017, compared with $156.4 million and $209.6
million at September 30, 2016 and June 30, 2017, respectively. Our
available-for-sale investment portfolio provides us with a
secondary source of liquidity to fund higher yielding asset
opportunities, such as loan originations. During the third quarter
of 2017, we purchased 31 securities with a par value of $49.3
million and weighted average yield of 2.55% and sold 19 securities
with a par value of $19.8 million and weighted average yield of
2.02%. The sales activity on available-for-sale securities resulted
in $38 thousand in net realized gains. During the same period, we
received $6.8 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 ended September 30, 2017 and
2016 were $256.7 million and 2.91% compared to $188.5 million and
3.22%, respectively.
At September 30, 2017, our net unrealized gains on
available-for-sale investment securities were $630 thousand
compared with net unrealized gains of $2.3 million and $682
thousand at September 30, 2016 and June 30, 2017, respectively. The
decrease in net unrealized gains from September 30, 2016 is
primarily due to significant changes in market interest rates.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 4 |
DEPOSITS BY TYPE - UNAUDITED |
(amounts in thousands) |
|
At September 30, |
|
|
|
|
|
|
|
At June 30, |
|
|
|
% of |
|
|
|
% of |
|
|
Change |
|
|
|
% of |
|
2017 |
|
Total |
|
2016 |
|
Total |
|
Amount |
|
% |
|
2017 |
|
Total |
Demand -
noninterest-bearing |
$ |
316,814 |
|
|
30 |
% |
|
$ |
254,435 |
|
|
26 |
% |
|
$ |
62,379 |
|
|
25 |
|
% |
|
$ |
303,560 |
|
|
29 |
% |
Demand -
interest-bearing |
|
433,466 |
|
|
41 |
|
|
|
394,525 |
|
|
40 |
|
|
|
38,941 |
|
|
10 |
|
% |
|
|
426,798 |
|
|
41 |
|
Total demand |
|
750,280 |
|
|
71 |
|
|
|
648,960 |
|
|
66 |
|
|
|
101,320 |
|
|
16 |
|
% |
|
|
730,358 |
|
|
70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
111,962 |
|
|
11 |
|
|
|
110,201 |
|
|
11 |
|
|
|
1,761 |
|
|
2 |
|
% |
|
|
109,472 |
|
|
10 |
|
Total non-maturing
deposits |
|
862,242 |
|
|
82 |
|
|
|
759,161 |
|
|
77 |
|
|
|
103,081 |
|
|
14 |
|
% |
|
|
839,830 |
|
|
80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of
deposit |
|
200,543 |
|
|
18 |
|
|
|
216,332 |
|
|
23 |
|
|
|
(15,789 |
) |
|
(7 |
) |
% |
|
|
206,395 |
|
|
20 |
|
Total deposits |
$ |
1,062,785 |
|
|
100 |
% |
|
$ |
975,493 |
|
|
100 |
% |
|
$ |
87,292 |
|
|
9 |
|
% |
|
$ |
1,046,225 |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rate on
interest-bearing deposits during the quarter |
|
0.43 |
% |
|
|
|
|
|
0.39 |
% |
|
|
|
|
|
0.04 |
|
|
|
|
|
|
0.42 |
% |
|
|
|
Average rate on all
deposits during the quarter |
|
0.31 |
% |
|
|
|
|
|
0.29 |
% |
|
|
|
|
|
0.02 |
|
|
|
|
|
|
0.31 |
% |
|
|
|
Total deposits at September 30, 2017, increased $87.3 million or
9% to $1.1 billion compared to September 30, 2016, and increased
$16.6 million or 6% annualized compared to June 30, 2017. Total
non-maturing deposits increased $103.1 million or 14% compared to
the same date a year ago and increased $22.4 million or 11%
annualized compared to June 30, 2017. Certificates of deposit
decreased $15.8 million or 7% compared to the same date a year ago
and decreased $5.9 million or 11% annualized compared to June 30,
2017.
|
|
|
|
|
|
|
|
|
TABLE 5 |
WHOLESALE AND BROKERED DEPOSITS -
UNAUDITED |
(amounts in thousands) |
|
At September 30, |
|
At June 30, |
|
2017 |
|
2016 |
|
2017 |
CDARS / ICS reciprocal
brokered deposits |
$ |
56,203 |
|
$ |
59,502 |
|
$ |
56,803 |
Online listing service
wholesale time deposits
|
|
37,293 |
|
|
52,456 |
|
|
42,709 |
Total wholesale and
brokered deposits |
$ |
93,496 |
|
$ |
111,958 |
|
$ |
99,512 |
In accordance with regulatory Call Report instructions, the Bank
will file (or has filed) quarterly Call Reports which list brokered
deposits of $56.2 million, $59.5 million and $56.8 million at
September 30, 2017, September 30, 2016 and June 30, 2017,
respectively.
INCOME STATEMENT OVERVIEW
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 6 |
SUMMARY INCOME STATEMENT -
UNAUDITED |
(amounts in thousands, except per share
data) |
|
For The Three Months Ended |
|
September 30, |
|
Change |
|
June 30, |
|
Change |
|
2017 |
|
2016 |
|
Amount |
|
% |
|
2017 |
|
Amount |
|
% |
Interest income |
$ |
11,765 |
|
$ |
10,330 |
|
$ |
1,435 |
|
14 |
% |
|
$ |
11,320 |
|
$ |
445 |
|
|
4 |
|
% |
Interest expense |
|
1,181 |
|
|
1,054 |
|
|
127 |
|
12 |
% |
|
|
1,145 |
|
|
36 |
|
|
3 |
|
% |
Net interest
income |
|
10,584 |
|
|
9,276 |
|
|
1,308 |
|
14 |
% |
|
|
10,175 |
|
|
409 |
|
|
4 |
|
% |
Provision for loan and
lease losses |
|
— |
|
|
— |
|
|
— |
|
— |
% |
|
|
300 |
|
|
(300 |
) |
|
(100 |
) |
% |
Noninterest income |
|
995 |
|
|
959 |
|
|
36 |
|
4 |
% |
|
|
983 |
|
|
12 |
|
|
1 |
|
% |
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
noninterest expense |
|
7,276 |
|
|
7,125 |
|
|
151 |
|
2 |
% |
|
|
7,714 |
|
|
(438 |
) |
|
(6 |
) |
% |
Income before provision
for income taxes |
|
4,303 |
|
|
3,110 |
|
|
1,193 |
|
38 |
% |
|
|
3,144 |
|
|
1,159 |
|
|
37 |
|
% |
Provision for income
taxes |
|
1,427 |
|
|
744 |
|
|
683 |
|
92 |
% |
|
|
935 |
|
|
492 |
|
|
53 |
|
% |
Net
income |
$ |
2,876 |
|
$ |
2,366 |
|
$ |
510 |
|
22 |
% |
|
$ |
2,209 |
|
$ |
667 |
|
|
30 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share |
$ |
0.18 |
|
$ |
0.18 |
|
$ |
— |
|
— |
% |
|
$ |
0.15 |
|
$ |
0.03 |
|
|
20 |
|
% |
Average basic
shares |
|
16,191 |
|
|
13,369 |
|
|
2,822 |
|
21 |
% |
|
|
15,014 |
|
|
1,177 |
|
|
8 |
|
% |
Diluted earnings per
share |
$ |
0.18 |
|
$ |
0.18 |
|
$ |
— |
|
— |
% |
|
$ |
0.15 |
|
$ |
0.03 |
|
|
20 |
|
% |
Average diluted
shares |
|
16,288 |
|
|
13,439 |
|
|
2,849 |
|
21 |
% |
|
|
15,113 |
|
|
1,175 |
|
|
8 |
|
% |
Dividends declared per
common share |
$ |
0.03 |
|
$ |
0.03 |
|
$ |
— |
|
— |
% |
|
$ |
0.03 |
|
$ |
— |
|
|
— |
|
% |
Third Quarter of 2017 Compared With Third Quarter of
2016
Net income for the third quarter of 2017 increased $510 thousand
compared to the third quarter of 2016. In the current quarter, net
interest income was $1.3 million higher and noninterest income was
$36 thousand higher. These positive changes were offset by
noninterest expense that was $151 thousand higher and a provision
for income taxes that was $683 thousand higher.
Net Interest Income
Net interest income increased $1.3 million compared to the same
period a year ago.
Interest income for the three months ended September 30, 2017
increased $1.4 million or 14% to $11.8 million. Interest and fees
on loans increased $880 thousand due to increased average loan
balances and increased yield on the loan portfolio. Interest on
securities increased $359 thousand and interest on interest-bearing
deposits due from banks increased $196 thousand.
Interest expense for the third quarter of 2017 increased $127
thousand or 12% to $1.2 million. The increase was primarily caused
by an increase in the average rate paid on interest-bearing
deposits.
Provision for loan and lease loss
During the three months ended September 30, 2017 and the same
period a year ago, the Company did not record a provision for loan
and lease losses.
Noninterest Income
Noninterest income for the three months ended September 30, 2017
increased $36 thousand compared to the third quarter for 2016.
Increased fee income of $86 thousand was offset by decreases in
gain on sale of securities of $32 thousand and FHLB dividends of
$22 thousand.
Noninterest Expense
Noninterest expense for the three months ended September 30,
2017 increased $151 thousand compared to the same period a year
previous. The increase in noninterest expense included the
following negative items:
- Employee incentive costs increased $139 thousand
- Other compensation-related costs increased $175 thousand
- Loan origination cost deferrals decreased $105 thousand
These increases were partially offset by the following positive
items:
- FDIC insurance costs decreased $97 thousand
- Recruiting costs decreased $80 thousand
Income Tax Provision
During the three months ended September 30, 2017, the Company
recorded a provision for income taxes of $1.4 million (33.2%
effective tax rate) compared with a provision for income taxes of
$744 thousand (23.92% effective tax rate) for the same period a
year ago. The Company’s effective tax rate has increased as muni
income, tax credits and permanent deductions arising from
investments in low income housing partnerships in 2017 comprise a
smaller percentage of pre-tax income.
Third Quarter of 2017 Compared With Second Quarter of
2017
Net income for the third quarter of 2017 increased $667 thousand
compared to the second quarter of 2017. In the current quarter, net
interest income was $409 thousand higher, provision for loan and
lease losses was $300 thousand lower, noninterest income was $12
thousand higher and noninterest expenses were $438 thousand lower.
These positive changes were offset by a provision for income taxes
that was $492 thousand higher.
Net Interest Income
Net interest income increased $409 thousand over the prior
quarter.
Interest income for the three months ended September 30, 2017
increased $445 thousand or 4% to $11.8 million. Interest and fees
on loans increased $129 thousand due to increased yields. Interest
on investment securities increased $194 thousand due to increased
average balances. Interest on interest-bearing deposits due from
banks increased $122 thousand due to increased average balances and
increased yields.
Interest expense for the three months ended September 30, 2017
increased $36 thousand or 3% to $1.2 million. The average rate paid
on interest-bearing deposits increased from 42 basis points to 43
basis points. The average rate paid on all liabilities was 60 basis
points for both the current quarter and the prior quarter.
Provision for loan and lease loss
As a result of continued improved asset quality, no provision
for loan and lease losses was deemed necessary during the current
quarter compared with a provision for loan and lease losses of $300
thousand for the prior quarter.
Noninterest Income
Noninterest income for the three months ended September 30, 2017
increased $12 thousand. During the current quarter, dividends on
Federal Home Loan Bank of San Francisco stock increased $26
thousand.
Noninterest Expense
Noninterest expense for the three months ended September 30,
2017 decreased $438 thousand compared to the second quarter of
2017. The decrease in noninterest expense included the following
items:
- Termination and write-off of a software development project -
$97 thousand
- Holding costs and write-downs for other real estate owned - $86
thousand
- Legal fees - $57 thousand
- Recruiting costs - $34 thousand
Income Tax Provision
During the three months ended September 30, 2017, we recorded a
provision for income taxes of $1.4 million (33.16% of pretax
income) compared with a provision for income taxes of $935 thousand
(29.74% of pretax income) for the prior quarter. Tax benefits from
vesting of restricted stock were $2 thousand in the current quarter
compared to $45 thousand in the prior quarter. Excluding those
benefits, the Company’s effective tax rates would have been 33.21%
and 31.17%, respectively.
Earnings Per Share
Diluted earnings per share were $0.18 for the three months ended
September 30, 2017 compared with diluted earnings per share of
$0.18 for the same period a year ago and diluted earnings per share
of $0.15 for the prior period. Net income and weighted average
shares used to calculate earnings per share – diluted are
summarized in table 6 above.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 7a |
NET INTEREST MARGIN - UNAUDITED |
(amounts in thousands) |
|
|
For The Three Months Ended |
|
|
September 30, 2017 |
|
September 30, 2016 |
|
June 30, 2017 |
|
|
Average |
|
|
|
|
Yield / |
|
Average |
|
|
|
|
Yield / |
|
Average |
|
|
|
|
Yield / |
(Amounts
in thousands) |
|
Balance |
|
Interest(1) |
|
Rate (5) |
|
Balance |
|
Interest(1) |
|
Rate (5) |
|
Balance |
|
Interest(1) |
|
Rate (5) |
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loans
(2) |
|
$ |
805,144 |
|
$ |
9,887 |
|
4.87 |
% |
|
$ |
769,354 |
|
$ |
9,007 |
|
4.66 |
% |
|
$ |
821,321 |
|
$ |
9,758 |
|
4.77 |
% |
Taxable
securities |
|
|
179,362 |
|
|
1,049 |
|
2.32 |
% |
|
|
114,578 |
|
|
689 |
|
2.39 |
% |
|
|
143,705 |
|
|
872 |
|
2.43 |
% |
Tax-exempt securities |
|
|
77,303 |
|
|
551 |
|
2.83 |
% |
|
|
73,952 |
|
|
552 |
|
2.97 |
% |
|
|
73,927 |
|
|
534 |
|
2.90 |
% |
Interest-bearing deposits in other banks |
|
|
84,323 |
|
|
278 |
|
1.31 |
% |
|
|
61,346 |
|
|
82 |
|
0.53 |
% |
|
|
58,691 |
|
|
156 |
|
1.07 |
% |
Average interest-
earning assets |
|
|
1,146,132 |
|
|
11,765 |
|
4.07 |
% |
|
|
1,019,230 |
|
|
10,330 |
|
4.03 |
% |
|
|
1,097,644 |
|
|
11,320 |
|
4.14 |
% |
Cash and
due from banks |
|
|
19,143 |
|
|
|
|
|
|
|
|
17,018 |
|
|
|
|
|
|
|
|
17,364 |
|
|
|
|
|
|
Premises
and equipment, net |
|
|
15,362 |
|
|
|
|
|
|
|
|
15,941 |
|
|
|
|
|
|
|
|
15,809 |
|
|
|
|
|
|
Other
assets |
|
|
40,263 |
|
|
|
|
|
|
|
|
41,729 |
|
|
|
|
|
|
|
|
39,630 |
|
|
|
|
|
|
Average total
assets |
|
$ |
1,220,900 |
|
|
|
|
|
|
|
$ |
1,093,918 |
|
|
|
|
|
|
|
$ |
1,170,447 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
|
$ |
436,614 |
|
|
196 |
|
0.18 |
% |
|
$ |
390,895 |
|
|
136 |
|
0.14 |
% |
|
$ |
421,888 |
|
|
184 |
|
0.17 |
% |
Savings
deposits |
|
|
110,305 |
|
|
52 |
|
0.19 |
% |
|
|
107,210 |
|
|
43 |
|
0.16 |
% |
|
|
109,857 |
|
|
47 |
|
0.17 |
% |
Certificates of deposit |
|
|
204,044 |
|
|
567 |
|
1.10 |
% |
|
|
221,078 |
|
|
524 |
|
0.94 |
% |
|
|
208,703 |
|
|
545 |
|
1.05 |
% |
Net term
debt |
|
|
17,804 |
|
|
292 |
|
6.51 |
% |
|
|
19,610 |
|
|
292 |
|
5.92 |
% |
|
|
19,539 |
|
|
298 |
|
6.12 |
% |
Junior
subordinated debentures |
|
|
10,310 |
|
|
74 |
|
2.85 |
% |
|
|
10,310 |
|
|
59 |
|
2.28 |
% |
|
|
10,310 |
|
|
71 |
|
2.76 |
% |
Average interest-
bearing liabilities |
|
|
779,077 |
|
|
1,181 |
|
0.60 |
% |
|
|
749,103 |
|
|
1,054 |
|
0.56 |
% |
|
|
770,297 |
|
|
1,145 |
|
0.60 |
% |
Noninterest-bearing demand |
|
|
303,314 |
|
|
|
|
|
|
|
|
240,418 |
|
|
|
|
|
|
|
|
275,039 |
|
|
|
|
|
|
Other
liabilities |
|
|
11,935 |
|
|
|
|
|
|
|
|
11,159 |
|
|
|
|
|
|
|
|
12,256 |
|
|
|
|
|
|
Shareholders’ equity |
|
|
126,574 |
|
|
|
|
|
|
|
|
93,238 |
|
|
|
|
|
|
|
|
112,855 |
|
|
|
|
|
|
Average liabilities and
shareholders’ equity |
|
$ |
1,220,900 |
|
|
|
|
|
|
|
$ |
1,093,918 |
|
|
|
|
|
|
|
$ |
1,170,447 |
|
|
|
|
|
|
Net interest income and
net interest margin (4) |
|
|
|
|
$ |
10,584 |
|
3.66 |
% |
|
|
|
|
$ |
9,276 |
|
3.62 |
% |
|
|
|
|
$ |
10,175 |
|
3.72 |
% |
Tax equivalent net
interest margin (3) |
|
|
|
|
|
|
|
3.76 |
% |
|
|
|
|
|
|
|
3.73 |
% |
|
|
|
|
|
|
|
3.82 |
% |
(1)
Interest income on loans is net of deferred fees and costs of
approximately $95 thousand, $289 thousand, and $131 thousand for
the three months ended September 30, 2017, and 2016 and June 30,
2017, respectively. |
(2) Net
loans includes average nonaccrual loans of $8.6 million, $10.5
million and $9.8 million for the three months ended September 30,
2017 and 2016 and June 30, 2017, respectively. |
(3)
Tax-exempt income has been adjusted to tax equivalent basis at a
34% tax rate. The amount of such adjustments was an addition to
recorded income of approximately $284 thousand, $284 thousand and
$275 thousand for the three months ended September 30, 2017 and
2016 and June 30, 2017, respectively. |
(4) Net
interest margin is net interest income expressed as a percentage of
average interest-earning assets. |
(5) Yields
and rates are calculated by dividing the income or expense by the
average balance of the assets or liabilities, respectively, and
annualizing the result. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 7b |
|
NET INTEREST MARGIN - UNAUDITED |
|
(amounts in thousands) |
|
|
|
For The Nine Months Ended |
|
|
|
September 30, 2017 |
|
September 30, 2016 |
|
|
|
Average |
|
|
|
|
Yield / |
|
Average |
|
|
|
|
Yield / |
|
(Amounts
in thousands) |
|
Balance |
|
Interest(1) |
|
Rate (5) |
|
Balance |
|
Interest(1) |
|
Rate (5) |
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loans
(2) |
|
$ |
811,080 |
|
$ |
29,029 |
|
4.79 |
% |
|
$ |
744,370 |
|
$ |
26,254 |
|
4.71 |
% |
|
Taxable
securities |
|
|
153,702 |
|
|
2,710 |
|
2.36 |
% |
|
|
119,541 |
|
|
2,281 |
|
2.55 |
% |
|
Tax-exempt securities |
|
|
74,932 |
|
|
1,615 |
|
2.88 |
% |
|
|
76,315 |
|
|
1,734 |
|
3.04 |
% |
|
Interest-bearing deposits in other banks |
|
|
66,818 |
|
|
548 |
|
1.10 |
% |
|
|
52,930 |
|
|
222 |
|
0.56 |
% |
|
Average interest-
earning assets |
|
|
1,106,532 |
|
|
33,902 |
|
4.10 |
% |
|
|
993,156 |
|
|
30,491 |
|
4.10 |
% |
|
Cash and
due from banks |
|
|
17,802 |
|
|
|
|
|
|
|
|
15,455 |
|
|
|
|
|
|
|
Premises
and equipment, net |
|
|
15,776 |
|
|
|
|
|
|
|
|
14,657 |
|
|
|
|
|
|
|
Other
assets |
|
|
40,040 |
|
|
|
|
|
|
|
|
40,942 |
|
|
|
|
|
|
|
Average total
assets |
|
$ |
1,180,150 |
|
|
|
|
|
|
|
$ |
1,064,210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
|
$ |
426,365 |
|
|
528 |
|
0.17 |
% |
|
$ |
365,917 |
|
|
388 |
|
0.14 |
% |
|
Savings
deposits |
|
|
111,258 |
|
|
146 |
|
0.18 |
% |
|
|
102,427 |
|
|
129 |
|
0.17 |
% |
|
Certificates of deposit |
|
|
209,275 |
|
|
1,641 |
|
1.05 |
% |
|
|
222,286 |
|
|
1,636 |
|
0.98 |
% |
|
Net term
debt |
|
|
18,644 |
|
|
883 |
|
6.33 |
% |
|
|
43,435 |
|
|
1,369 |
|
4.21 |
% |
|
Junior
subordinated debentures |
|
|
10,310 |
|
|
211 |
|
2.74 |
% |
|
|
10,310 |
|
|
172 |
|
2.23 |
% |
|
Average interest-
bearing liabilities |
|
|
775,852 |
|
|
3,409 |
|
0.59 |
% |
|
|
744,375 |
|
|
3,694 |
|
0.66 |
% |
|
Noninterest-bearing demand |
|
|
280,559 |
|
|
|
|
|
|
|
|
214,540 |
|
|
|
|
|
|
|
Other
liabilities |
|
|
12,206 |
|
|
|
|
|
|
|
|
13,336 |
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
111,533 |
|
|
|
|
|
|
|
|
91,959 |
|
|
|
|
|
|
|
Average liabilities and
shareholders’ equity |
|
$ |
1,180,150 |
|
|
|
|
|
|
|
$ |
1,064,210 |
|
|
|
|
|
|
|
Net interest income and
net interest margin (4) |
|
|
|
|
$ |
30,493 |
|
3.68 |
% |
|
|
|
|
$ |
26,797 |
|
3.60 |
% |
|
Tax equivalent net
interest margin (3) |
|
|
|
|
|
|
|
3.78 |
% |
|
|
|
|
|
|
|
3.72 |
% |
|
(1)
Interest income on loans is net of deferred fees and costs of
approximately $423 thousand and $956 thousand for the nine months
ended September 30, 2017 and 2016, respectively. |
(2) Net
loans includes average nonaccrual loans of $9.7 million and $10.7
million for the nine months ended September 30, 2017 and 2016,
respectively. |
(3)
Tax-exempt income has been adjusted to tax equivalent basis at a
34% tax rate. The amount of such adjustments was an addition to
recorded income of approximately $832 thousand and $893 thousand
for the nine months ended September 30, 2017 and 2016,
respectively. |
(4) Net
interest margin is net interest income expressed as a percentage of
average interest-earning assets. |
(5) Yields
and rates are calculated by dividing the income or expense by the
average balance of the assets or liabilities, respectively, and
annualizing the result. |
The current quarter net interest margin decreased six basis
points to 3.66% as compared to the prior quarter due to decreased
yields on average interest-earning assets. The decreased yields on
average interest-earning assets was due to maturities and
repayments on loans being invested at lower rates in the securities
portfolio and interest-bearing deposits in other banks.
Increases in average interest-earning assets were funded by
increases in low cost demand deposits and increases in equity from
the sale of common stock during the previous quarter.
The net interest margin was 3.66% for the current quarter
compared to 3.62% for the same period a year ago. The increase was
due to increased yield on the loan portfolio and increased yield on
interest-bearing deposits in other banks. The increase was
partially offset by decreased yield in the investment portfolio and
an increase in the average rate paid on interest-bearing
deposits.
Average deposit balances for the current quarter increased $38.8
million and $94.7 million compared to the prior quarter and the
same period a year ago, respectively. The increase in average
deposits was due to organic growth in core deposits. Our overall
cost of total deposits was 0.31% for the quarter ended September
30, 2017 compared to 0.29% for the same period a year ago and 0.31%
for the prior quarter.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 8 |
|
ALLOWANCE FOR LOAN AND LEASE LOSSES ROLL
FORWARD AND IMPAIRED LOAN TOTALS - UNAUDITED |
|
(amounts in thousands) |
|
|
For The Three Months Ended |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
2017 |
|
2017 |
|
2017 |
|
2016 |
|
2016 |
Beginning balance
ALLL |
$ |
11,688 |
|
|
|
$ |
11,641 |
|
|
|
$ |
11,544 |
|
|
|
$ |
11,849 |
|
|
|
$ |
11,864 |
|
|
Provision for loan and
lease losses |
|
— |
|
|
|
|
300 |
|
|
|
|
200 |
|
|
|
|
— |
|
|
|
|
— |
|
|
Loans charged-off |
|
(245 |
) |
|
|
|
(359 |
) |
|
|
|
(447 |
) |
|
|
|
(386 |
) |
|
|
|
(357 |
) |
|
Loan loss
recoveries |
|
249 |
|
|
|
|
106 |
|
|
|
|
344 |
|
|
|
|
81 |
|
|
|
|
342 |
|
|
Ending balance
ALLL |
$ |
11,692 |
|
|
|
$ |
11,688 |
|
|
|
$ |
11,641 |
|
|
|
$ |
11,544 |
|
|
|
$ |
11,849 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At September 30, |
|
At June 30, |
|
At March 31, |
|
At December 31, |
|
At September 30, |
|
2017 |
|
2017 |
|
2017 |
|
2016 |
|
2016 |
Nonaccrual loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
2,309 |
|
|
|
$ |
2,410 |
|
|
|
$ |
2,534 |
|
|
|
$ |
2,749 |
|
|
|
$ |
1,710 |
|
|
Real
estate - commercial non-owner occupied |
|
— |
|
|
|
|
1,196 |
|
|
|
|
1,196 |
|
|
|
|
1,196 |
|
|
|
|
1,196 |
|
|
Real
estate - commercial owner occupied |
|
617 |
|
|
|
|
639 |
|
|
|
|
654 |
|
|
|
|
784 |
|
|
|
|
800 |
|
|
Real
estate - residential - ITIN |
|
3,201 |
|
|
|
|
3,346 |
|
|
|
|
3,331 |
|
|
|
|
3,576 |
|
|
|
|
3,392 |
|
|
Real
estate - residential - 1-4 family mortgage |
|
626 |
|
|
|
|
653 |
|
|
|
|
1,337 |
|
|
|
|
1,914 |
|
|
|
|
1,798 |
|
|
Real
estate - residential - equity lines |
|
815 |
|
|
|
|
872 |
|
|
|
|
906 |
|
|
|
|
917 |
|
|
|
|
942 |
|
|
Consumer
and other |
|
37 |
|
|
|
|
38 |
|
|
|
|
39 |
|
|
|
|
250 |
|
|
|
|
252 |
|
|
Total nonaccrual
loans |
|
7,605 |
|
|
|
|
9,154 |
|
|
|
|
9,997 |
|
|
|
|
11,386 |
|
|
|
|
10,090 |
|
|
Accruing troubled debt
restructured loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
671 |
|
|
|
|
703 |
|
|
|
|
741 |
|
|
|
|
776 |
|
|
|
|
726 |
|
|
Real
estate - commercial non-owner occupied |
|
805 |
|
|
|
|
806 |
|
|
|
|
808 |
|
|
|
|
808 |
|
|
|
|
811 |
|
|
Real
estate - residential - ITIN |
|
4,655 |
|
|
|
|
4,712 |
|
|
|
|
4,761 |
|
|
|
|
5,033 |
|
|
|
|
5,280 |
|
|
Real
estate - residential - equity lines |
|
441 |
|
|
|
|
445 |
|
|
|
|
450 |
|
|
|
|
454 |
|
|
|
|
543 |
|
|
Total accruing troubled
debt restructured loans |
|
6,572 |
|
|
|
|
6,666 |
|
|
|
|
6,760 |
|
|
|
|
7,071 |
|
|
|
|
7,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All other accruing
impaired loans |
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
337 |
|
|
|
|
483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired
loans |
$ |
14,177 |
|
|
|
$ |
15,820 |
|
|
|
$ |
16,757 |
|
|
|
$ |
18,794 |
|
|
|
$ |
17,933 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans outstanding
at period end |
$ |
824,874 |
|
|
|
$ |
815,388 |
|
|
|
$ |
810,194 |
|
|
|
$ |
804,211 |
|
|
|
$ |
779,019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans to
gross loans |
|
0.92 |
|
% |
|
|
1.12 |
|
% |
|
|
1.23 |
|
% |
|
|
1.42 |
|
% |
|
|
1.30 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan and lease losses as a percent of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
loans |
|
1.42 |
|
% |
|
|
1.43 |
|
% |
|
|
1.44 |
|
% |
|
|
1.44 |
|
% |
|
|
1.52 |
|
% |
Nonaccrual loans |
|
153.74 |
|
% |
|
|
127.68 |
|
% |
|
|
116.44 |
|
% |
|
|
101.39 |
|
% |
|
|
117.43 |
|
% |
Impaired
loans |
|
82.47 |
|
% |
|
|
73.88 |
|
% |
|
|
69.47 |
|
% |
|
|
61.42 |
|
% |
|
|
66.07 |
|
% |
We realized net loan loss recoveries of $4 thousand in the
current quarter compared with net loan loss charge-offs of $253
thousand in the prior quarter and net loan loss charge-offs of $15
thousand for the same period a year ago. Recoveries during the
third quarter of 2017 of $250 thousand were primarily associated
with purchased consumer loans and one commercial loan.
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.
There were no provisions for loan and lease losses during the
quarter ended September 30, 2017 or the year ended December 31,
2016. A combination of net loan losses and loan portfolio growth
supported management’s decision to record a $300 thousand provision
for loan and lease losses during the quarter ended June 30, 2017
and a $200 thousand provision for loan and lease losses during the
quarter ended March 31, 2017. Our ALLL as a percentage of gross
loans was 1.42% as of September 30, 2017 compared to 1.52% as of
September 30, 2016 and 1.43% as of June 30, 2017. 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 September 30, 2017. 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 September 30, 2017, the recorded investment in loans
classified as impaired totaled $14.2 million, with a corresponding
specific reserve of $918 thousand compared to impaired loans of
$17.9 million with a corresponding specific reserve of $925
thousand at September 30, 2016 and impaired loans of $15.8 million,
with a corresponding specific reserve of $1.1 million at June 30,
2017. The decrease in loans classified as impaired and the decrease
in the corresponding specific reserve compared to the prior quarter
is primarily due to one nonaccrual commercial real estate loan that
was paid off during the quarter.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 9 |
TROUBLED DEBT RESTRUCTURINGS -
UNAUDITED |
(amounts in thousands) |
|
|
At September 30, |
|
At June 30, |
|
At March 31, |
|
At December 31, |
|
At September 30, |
|
|
2017 |
|
2017 |
|
2017 |
|
2016 |
|
2016 |
Nonaccrual |
|
$ |
4,403 |
|
|
$ |
4,630 |
|
|
$ |
4,570 |
|
|
$ |
4,995 |
|
|
$ |
3,795 |
|
Accruing |
|
|
6,572 |
|
|
|
6,666 |
|
|
|
6,760 |
|
|
|
7,071 |
|
|
|
7,360 |
|
Total troubled debt
restructurings |
|
$ |
10,975 |
|
|
$ |
11,296 |
|
|
$ |
11,330 |
|
|
$ |
12,066 |
|
|
$ |
11,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of total
gross loans |
|
|
1.33 |
% |
|
|
1.39 |
% |
|
|
1.40 |
% |
|
|
1.50 |
% |
|
|
1.43 |
% |
There were no new troubled debt restructurings during the three
months ended September 30, 2017. As of September 30, 2017, we had
118 restructured loans that qualified as troubled debt
restructurings, of which 111 were performing according to their
restructured terms.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 10 |
NONPERFORMING ASSETS - UNAUDITED |
(amounts in thousands) |
|
|
At September 30, |
|
At June 30, |
|
At March 31, |
|
At December 31, |
|
At September 30, |
|
|
2017 |
|
2017 |
|
2017 |
|
2016 |
|
2016 |
Total nonaccrual
loans |
|
$ |
7,605 |
|
|
$ |
9,154 |
|
|
$ |
9,997 |
|
|
$ |
11,386 |
|
|
$ |
10,090 |
|
90 days past due and
still accruing |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total nonperforming
loans |
|
|
7,605 |
|
|
|
9,154 |
|
|
|
9,997 |
|
|
|
11,386 |
|
|
|
10,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other real estate
owned |
|
|
699 |
|
|
|
1,517 |
|
|
|
814 |
|
|
|
759 |
|
|
|
793 |
|
Total nonperforming
assets |
|
$ |
8,304 |
|
|
$ |
10,671 |
|
|
$ |
10,811 |
|
|
$ |
12,145 |
|
|
$ |
10,883 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to
gross loans |
|
|
0.92 |
% |
|
|
1.12 |
% |
|
|
1.23 |
% |
|
|
1.42 |
% |
|
|
1.30 |
% |
Nonperforming assets to
total assets |
|
|
0.67 |
% |
|
|
0.88 |
% |
|
|
0.95 |
% |
|
|
1.06 |
% |
|
|
0.98 |
% |
The September 30, 2017 OREO balance consists of three
properties, of which one is a 1-4 family residential real estate
property in the amount of $22 thousand, one is a nonfarm
nonresidential property in the amount of $565 thousand and one is
an undeveloped commercial property in the amount of $112 thousand.
The decrease in the OREO balance compared to the prior quarter is
due to one residential real estate property that was sold during
the quarter. On October 6, 2017, the nonfarm nonresidential
property that was included in the September 30, 2017 OREO balance
for $565 thousand sold for $923 thousand resulting in a gain in the
fourth quarter of $358 thousand.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 11 |
UNAUDITED CONSOLIDATED |
BALANCE SHEET |
(amounts in thousands, except per share
data) |
|
|
At September 30, |
|
At September 30, |
|
Change |
|
At June 30, |
|
|
2017 |
|
2016 |
|
$ |
|
% |
|
2017 |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
due from banks |
|
$ |
19,929 |
|
|
$ |
19,699 |
|
|
$ |
230 |
|
|
1 |
|
% |
|
$ |
23,420 |
|
Interest-bearing deposits in other banks |
|
|
65,702 |
|
|
|
65,431 |
|
|
|
271 |
|
|
— |
|
% |
|
|
73,434 |
|
Total
cash and cash equivalents |
|
|
85,631 |
|
|
|
85,130 |
|
|
|
501 |
|
|
1 |
|
% |
|
|
96,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available-for-sale, at fair value |
|
|
232,494 |
|
|
|
156,440 |
|
|
|
76,054 |
|
|
49 |
|
% |
|
|
209,609 |
|
Securities held-to-maturity, at amortized cost |
|
|
30,724 |
|
|
|
31,771 |
|
|
|
(1,047 |
) |
|
(3 |
) |
% |
|
|
31,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans,
net of deferred fees and costs |
|
|
826,644 |
|
|
|
780,174 |
|
|
|
46,470 |
|
|
6 |
|
% |
|
|
816,929 |
|
Allowance
for loan and lease losses |
|
|
(11,692 |
) |
|
|
(11,849 |
) |
|
|
157 |
|
|
(1 |
) |
% |
|
|
(11,688 |
) |
Net
loans |
|
|
814,952 |
|
|
|
768,325 |
|
|
|
46,627 |
|
|
6 |
|
% |
|
|
805,241 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises
and equipment, net |
|
|
15,039 |
|
|
|
15,930 |
|
|
|
(891 |
) |
|
(6 |
) |
% |
|
|
15,417 |
|
Other
real estate owned |
|
|
699 |
|
|
|
793 |
|
|
|
(94 |
) |
|
(12 |
) |
% |
|
|
1,517 |
|
Life
insurance |
|
|
21,764 |
|
|
|
22,946 |
|
|
|
(1,182 |
) |
|
(5 |
) |
% |
|
|
21,629 |
|
Deferred
taxes |
|
|
8,751 |
|
|
|
8,171 |
|
|
|
580 |
|
|
7 |
|
% |
|
|
8,723 |
|
Goodwill
and core deposit intangible, net |
|
|
2,086 |
|
|
|
2,307 |
|
|
|
(221 |
) |
|
(10 |
) |
% |
|
|
2,141 |
|
Other
assets |
|
|
19,741 |
|
|
|
19,205 |
|
|
|
536 |
|
|
3 |
|
% |
|
|
19,634 |
|
Total assets |
|
$ |
1,231,881 |
|
|
$ |
1,111,018 |
|
|
$ |
120,863 |
|
|
11 |
|
% |
|
$ |
1,212,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand -
noninterest-bearing |
|
$ |
316,814 |
|
|
$ |
254,435 |
|
|
$ |
62,379 |
|
|
25 |
|
% |
|
$ |
303,560 |
|
Demand -
interest-bearing |
|
|
433,466 |
|
|
|
394,525 |
|
|
|
38,941 |
|
|
10 |
|
% |
|
|
426,798 |
|
Savings |
|
|
111,962 |
|
|
|
110,201 |
|
|
|
1,761 |
|
|
2 |
|
% |
|
|
109,472 |
|
Certificates of deposit |
|
|
200,543 |
|
|
|
216,332 |
|
|
|
(15,789 |
) |
|
(7 |
) |
% |
|
|
206,395 |
|
Total
deposits |
|
|
1,062,785 |
|
|
|
975,493 |
|
|
|
87,292 |
|
|
9 |
|
% |
|
|
1,046,225 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term
debt |
|
|
17,700 |
|
|
|
19,317 |
|
|
|
(1,617 |
) |
|
(8 |
) |
% |
|
|
18,300 |
|
Unamortized debt issuance costs |
|
|
(150 |
) |
|
|
(193 |
) |
|
|
43 |
|
|
(22 |
) |
% |
|
|
(161 |
) |
Net term
debt |
|
|
17,550 |
|
|
|
19,124 |
|
|
|
(1,574 |
) |
|
(8 |
) |
% |
|
|
18,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Junior
subordinated debentures |
|
|
10,310 |
|
|
|
10,310 |
|
|
|
— |
|
|
— |
|
% |
|
|
10,310 |
|
Other
liabilities |
|
|
12,831 |
|
|
|
11,798 |
|
|
|
1,033 |
|
|
9 |
|
% |
|
|
11,468 |
|
Total
liabilities |
|
|
1,103,476 |
|
|
|
1,016,725 |
|
|
|
86,751 |
|
|
9 |
|
% |
|
|
1,086,142 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock |
|
|
51,755 |
|
|
|
24,483 |
|
|
|
27,272 |
|
|
111 |
|
% |
|
|
51,651 |
|
Retained
earnings |
|
|
76,179 |
|
|
|
68,321 |
|
|
|
7,858 |
|
|
12 |
|
% |
|
|
73,789 |
|
Accumulated other comprehensive income, net of tax |
|
|
471 |
|
|
|
1,489 |
|
|
|
(1,018 |
) |
|
(68 |
) |
% |
|
|
512 |
|
Total
shareholders' equity |
|
|
128,405 |
|
|
|
94,293 |
|
|
|
34,112 |
|
|
36 |
|
% |
|
|
125,952 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity |
|
$ |
1,231,881 |
|
|
$ |
1,111,018 |
|
|
$ |
120,863 |
|
|
11 |
|
% |
|
$ |
1,212,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-earning
assets |
|
$ |
1,154,934 |
|
|
$ |
1,031,527 |
|
|
$ |
123,407 |
|
|
12 |
|
% |
|
$ |
1,130,619 |
|
Shares outstanding |
|
|
16,265 |
|
|
|
13,439 |
|
|
|
|
|
|
|
|
|
16,260 |
|
Tangible book value per
share |
|
$ |
7.77 |
|
|
$ |
6.84 |
|
|
|
|
|
|
|
|
$ |
7.61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 12 |
UNAUDITED |
INCOME STATEMENT |
(amounts in thousands, except per share
data) |
|
|
For The Three Months Ended |
|
For The Nine Months Ended |
|
|
September 30, |
|
Change |
|
June 30, |
|
September 30, |
|
|
2017 |
|
2016 |
|
$ |
|
% |
|
2017 |
|
2017 |
|
2016 |
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
and fees on loans |
|
$ |
9,887 |
|
$ |
9,007 |
|
$ |
880 |
|
|
10 |
|
% |
|
$ |
9,758 |
|
$ |
29,029 |
|
$ |
26,254 |
|
Interest
on securities |
|
|
1,049 |
|
|
689 |
|
|
360 |
|
|
52 |
|
% |
|
|
872 |
|
|
2,710 |
|
|
2,281 |
|
Interest
on tax-exempt securities |
|
|
551 |
|
|
552 |
|
|
(1 |
) |
|
— |
|
% |
|
|
534 |
|
|
1,615 |
|
|
1,734 |
|
Interest
on deposits in other banks |
|
|
278 |
|
|
82 |
|
|
196 |
|
|
239 |
|
% |
|
|
156 |
|
|
548 |
|
|
222 |
|
Total interest
income |
|
|
11,765 |
|
|
10,330 |
|
|
1,435 |
|
|
14 |
|
% |
|
|
11,320 |
|
|
33,902 |
|
|
30,491 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
on demand deposits |
|
|
196 |
|
|
136 |
|
|
60 |
|
|
44 |
|
% |
|
|
184 |
|
|
528 |
|
|
388 |
|
Interest
on savings deposits |
|
|
52 |
|
|
43 |
|
|
9 |
|
|
21 |
|
% |
|
|
47 |
|
|
146 |
|
|
129 |
|
Interest
on certificates of deposit |
|
|
567 |
|
|
524 |
|
|
43 |
|
|
8 |
|
% |
|
|
545 |
|
|
1,641 |
|
|
1,636 |
|
Interest
on term debt |
|
|
292 |
|
|
292 |
|
|
— |
|
|
— |
|
% |
|
|
298 |
|
|
883 |
|
|
1,369 |
|
Interest
on other borrowings |
|
|
74 |
|
|
59 |
|
|
15 |
|
|
25 |
|
% |
|
|
71 |
|
|
211 |
|
|
172 |
|
Total interest
expense |
|
|
1,181 |
|
|
1,054 |
|
|
127 |
|
|
12 |
|
% |
|
|
1,145 |
|
|
3,409 |
|
|
3,694 |
|
Net interest
income |
|
|
10,584 |
|
|
9,276 |
|
|
1,308 |
|
|
14 |
|
% |
|
|
10,175 |
|
|
30,493 |
|
|
26,797 |
|
Provision for loan and
lease losses |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
% |
|
|
300 |
|
|
500 |
|
|
— |
|
Net
interest income after provision for loan and lease losses |
|
|
10,584 |
|
|
9,276 |
|
|
1,308 |
|
|
14 |
|
% |
|
|
9,875 |
|
|
29,993 |
|
|
26,797 |
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
charges on deposit accounts |
|
|
132 |
|
|
133 |
|
|
(1 |
) |
|
(1 |
) |
% |
|
|
142 |
|
|
401 |
|
|
293 |
|
ATM and
point of sale |
|
|
273 |
|
|
287 |
|
|
(14 |
) |
|
(5 |
) |
% |
|
|
288 |
|
|
827 |
|
|
714 |
|
Payroll
and benefit processing fees |
|
|
147 |
|
|
133 |
|
|
14 |
|
|
11 |
|
% |
|
|
147 |
|
|
485 |
|
|
432 |
|
Life
insurance |
|
|
134 |
|
|
152 |
|
|
(18 |
) |
|
(12 |
) |
% |
|
|
135 |
|
|
915 |
|
|
461 |
|
Gain on
investment securities, net |
|
|
38 |
|
|
70 |
|
|
(32 |
) |
|
(46 |
) |
% |
|
|
35 |
|
|
139 |
|
|
192 |
|
Impairment losses on investment securities |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
% |
|
|
— |
|
|
— |
|
|
(546 |
) |
Federal
Home Loan Bank of San Francisco dividends |
|
|
80 |
|
|
102 |
|
|
(22 |
) |
|
(22 |
) |
% |
|
|
54 |
|
|
237 |
|
|
291 |
|
Other
income |
|
|
191 |
|
|
82 |
|
|
109 |
|
|
133 |
|
% |
|
|
182 |
|
|
516 |
|
|
508 |
|
Total noninterest
income |
|
|
995 |
|
|
959 |
|
|
36 |
|
|
4 |
|
% |
|
|
983 |
|
|
3,520 |
|
|
2,345 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 12 - CONTINUED |
UNAUDITED |
INCOME STATEMENT |
(amounts in thousands, except per share
data) |
|
|
For The Three Months Ended |
|
For The Nine Months Ended |
|
|
September 30, |
|
Change |
|
June 30, |
|
September 30, |
|
|
2017 |
|
2016 |
|
$ |
|
% |
|
2017 |
|
2017 |
|
2016 |
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and related benefits |
|
|
4,291 |
|
|
3,873 |
|
|
418 |
|
|
11 |
|
% |
|
|
4,147 |
|
|
13,296 |
|
|
12,188 |
Occupancy
and equipment |
|
|
1,067 |
|
|
1,071 |
|
|
(4 |
) |
|
— |
|
% |
|
|
1,054 |
|
|
3,169 |
|
|
2,847 |
Federal
Deposit Insurance Corporation insurance premium |
|
|
78 |
|
|
176 |
|
|
(98 |
) |
|
(56 |
) |
% |
|
|
104 |
|
|
230 |
|
|
513 |
Data
processing fees |
|
|
437 |
|
|
464 |
|
|
(27 |
) |
|
(6 |
) |
% |
|
|
450 |
|
|
1,294 |
|
|
1,142 |
Professional service fees |
|
|
276 |
|
|
293 |
|
|
(17 |
) |
|
(6 |
) |
% |
|
|
459 |
|
|
1,119 |
|
|
1,174 |
Telecommunications |
|
|
219 |
|
|
199 |
|
|
20 |
|
|
10 |
|
% |
|
|
223 |
|
|
653 |
|
|
545 |
Branch
acquisition costs |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
% |
|
|
— |
|
|
— |
|
|
580 |
Loss on
cancellation of interest rate swap |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
% |
|
|
— |
|
|
— |
|
|
2,325 |
Other
expenses |
|
|
908 |
|
|
1,049 |
|
|
(141 |
) |
|
(13 |
) |
% |
|
|
1,277 |
|
|
3,290 |
|
|
3,480 |
Total noninterest
expense |
|
|
7,276 |
|
|
7,125 |
|
|
151 |
|
|
2 |
|
% |
|
|
7,714 |
|
|
23,051 |
|
|
24,794 |
Income before provision
for income taxes |
|
|
4,303 |
|
|
3,110 |
|
|
1,193 |
|
|
38 |
|
% |
|
|
3,144 |
|
|
10,462 |
|
|
4,348 |
Deferred tax asset
write-off |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
% |
|
|
— |
|
|
— |
|
|
363 |
Provision for income
taxes |
|
|
1,427 |
|
|
744 |
|
|
683 |
|
|
92 |
|
% |
|
|
935 |
|
|
3,125 |
|
|
1,023 |
Net income |
|
$ |
2,876 |
|
$ |
2,366 |
|
$ |
510 |
|
|
22 |
|
% |
|
$ |
2,209 |
|
$ |
7,337 |
|
$ |
2,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share |
|
$ |
0.18 |
|
$ |
0.18 |
|
$ |
— |
|
|
— |
|
% |
|
$ |
0.15 |
|
$ |
0.49 |
|
$ |
0.22 |
Average basic
shares |
|
|
16,191 |
|
|
13,369 |
|
|
2,822 |
|
|
21 |
|
% |
|
|
15,014 |
|
|
14,884 |
|
|
13,366 |
Diluted earnings per
share |
|
$ |
0.18 |
|
$ |
0.18 |
|
$ |
— |
|
|
— |
|
% |
|
$ |
0.15 |
|
$ |
0.49 |
|
$ |
0.22 |
Average diluted
shares |
|
|
16,288 |
|
|
13,439 |
|
|
2,849 |
|
|
21 |
|
% |
|
|
15,113 |
|
|
14,984 |
|
|
13,412 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 13 |
UNAUDITED CONDENSED CONSOLIDATED |
YEAR TO DATE AVERAGE BALANCE
SHEETS |
(amounts in thousands) |
|
For the Nine Months Ended |
|
For the Twelve Months Ended |
|
|
September 30, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
2017 |
|
2016 |
|
2016 |
|
2015 |
|
2014 |
Earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
811,080 |
|
$ |
744,370 |
|
$ |
752,938 |
|
$ |
699,227 |
|
$ |
625,166 |
Taxable
securities |
|
|
153,702 |
|
|
119,541 |
|
|
120,884 |
|
|
120,897 |
|
|
147,916 |
Tax
exempt securities |
|
|
74,932 |
|
|
76,315 |
|
|
75,303 |
|
|
77,089 |
|
|
83,973 |
Interest-bearing deposits in other banks |
|
|
66,818 |
|
|
52,930 |
|
|
58,668 |
|
|
30,323 |
|
|
56,465 |
Total earning
assets |
|
|
1,106,532 |
|
|
993,156 |
|
|
1,007,793 |
|
|
927,536 |
|
|
913,520 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
|
|
17,802 |
|
|
15,455 |
|
|
15,831 |
|
|
11,220 |
|
|
11,246 |
Premises and equipment,
net |
|
|
15,776 |
|
|
14,657 |
|
|
15,078 |
|
|
11,552 |
|
|
12,105 |
Other assets |
|
|
40,040 |
|
|
40,942 |
|
|
41,048 |
|
|
42,423 |
|
|
36,936 |
Total assets |
|
$ |
1,180,150 |
|
$ |
1,064,210 |
|
$ |
1,079,750 |
|
$ |
992,731 |
|
$ |
973,807 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand -
noninterest-bearing |
|
$ |
280,559 |
|
$ |
214,540 |
|
$ |
226,368 |
|
$ |
156,578 |
|
$ |
139,792 |
Demand -
interest-bearing |
|
|
426,365 |
|
|
365,917 |
|
|
374,170 |
|
|
283,105 |
|
|
272,383 |
Savings |
|
|
111,258 |
|
|
102,427 |
|
|
104,771 |
|
|
92,659 |
|
|
91,108 |
Certificates of deposit |
|
|
209,275 |
|
|
222,286 |
|
|
221,074 |
|
|
238,626 |
|
|
259,445 |
Total
deposits |
|
|
1,027,457 |
|
|
905,170 |
|
|
926,383 |
|
|
770,968 |
|
|
762,728 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term
debt |
|
|
18,644 |
|
|
43,435 |
|
|
37,286 |
|
|
88,874 |
|
|
77,534 |
Junior
subordinated debentures |
|
|
10,310 |
|
|
10,310 |
|
|
10,310 |
|
|
10,310 |
|
|
15,239 |
Other
liabilities |
|
|
12,206 |
|
|
13,336 |
|
|
13,217 |
|
|
16,588 |
|
|
15,934 |
Total liabilities |
|
|
1,068,617 |
|
|
972,251 |
|
|
987,196 |
|
|
886,740 |
|
|
871,435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity |
|
|
111,533 |
|
|
91,959 |
|
|
92,554 |
|
|
105,991 |
|
|
102,372 |
Liabilities &
shareholders' equity |
|
$ |
1,180,150 |
|
$ |
1,064,210 |
|
$ |
1,079,750 |
|
$ |
992,731 |
|
$ |
973,807 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 14 |
UNAUDITED CONDENSED CONSOLIDATED |
QUARTERLY AVERAGE BALANCE SHEETS |
(amounts in thousands) |
|
|
For The Three Months Ended |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|
2017 |
|
2017 |
|
2017 |
|
2016 |
|
2016 |
Earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
805,144 |
|
$ |
821,321 |
|
$ |
806,793 |
|
$ |
778,458 |
|
$ |
769,354 |
Taxable
securities |
|
|
179,362 |
|
|
143,705 |
|
|
137,582 |
|
|
124,881 |
|
|
114,578 |
Tax
exempt securities |
|
|
77,303 |
|
|
73,927 |
|
|
73,524 |
|
|
72,288 |
|
|
73,952 |
Interest-bearing deposits in other banks |
|
|
84,323 |
|
|
58,691 |
|
|
57,140 |
|
|
75,760 |
|
|
61,346 |
Total earning
assets |
|
|
1,146,132 |
|
|
1,097,644 |
|
|
1,075,039 |
|
|
1,051,387 |
|
|
1,019,230 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
|
|
19,143 |
|
|
17,364 |
|
|
16,873 |
|
|
16,953 |
|
|
17,018 |
Premises and equipment,
net |
|
|
15,362 |
|
|
15,809 |
|
|
16,165 |
|
|
16,331 |
|
|
15,941 |
Other assets |
|
|
40,263 |
|
|
39,630 |
|
|
40,228 |
|
|
41,363 |
|
|
41,729 |
Total assets |
|
$ |
1,220,900 |
|
$ |
1,170,447 |
|
$ |
1,148,305 |
|
$ |
1,126,034 |
|
$ |
1,093,918 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand -
noninterest-bearing |
|
$ |
303,314 |
|
$ |
275,039 |
|
$ |
262,881 |
|
$ |
261,600 |
|
$ |
240,418 |
Demand -
interest-bearing |
|
|
436,614 |
|
|
421,888 |
|
|
420,416 |
|
|
398,749 |
|
|
390,895 |
Savings |
|
|
110,305 |
|
|
109,857 |
|
|
113,647 |
|
|
111,755 |
|
|
107,210 |
Certificates of deposit |
|
|
204,044 |
|
|
208,703 |
|
|
215,202 |
|
|
217,463 |
|
|
221,078 |
Total
deposits |
|
|
1,054,277 |
|
|
1,015,487 |
|
|
1,012,146 |
|
|
989,567 |
|
|
959,601 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term
debt |
|
|
17,804 |
|
|
19,539 |
|
|
18,598 |
|
|
18,975 |
|
|
19,610 |
Junior
subordinated debentures |
|
|
10,310 |
|
|
10,310 |
|
|
10,310 |
|
|
10,310 |
|
|
10,310 |
Other
liabilities |
|
|
11,935 |
|
|
12,256 |
|
|
12,431 |
|
|
12,856 |
|
|
11,159 |
Total liabilities |
|
|
1,094,326 |
|
|
1,057,592 |
|
|
1,053,485 |
|
|
1,031,708 |
|
|
1,000,680 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity |
|
|
126,574 |
|
|
112,855 |
|
|
94,820 |
|
|
94,326 |
|
|
93,238 |
Liabilities &
shareholders' equity |
|
$ |
1,220,900 |
|
$ |
1,170,447 |
|
$ |
1,148,305 |
|
$ |
1,126,034 |
|
$ |
1,093,918 |
|
About Bank of Commerce Holdings
Bank of Commerce Holdings is a bank holding company
headquartered in Sacramento, 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 community banking and
financial services through nine 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”.
Contact Information:
Randall S. Eslick, President and Chief Executive
OfficerTelephone Direct (916) 677-5800
James A. Sundquist, Executive Vice President and Chief Financial
OfficerTelephone Direct (916) 677-5825
Samuel D. Jimenez, Executive Vice President and Chief Operating
OfficerTelephone Direct (530) 722-3952
Andrea Schneck, Vice President and Senior Administrative
OfficerTelephone Direct (530) 722-3959
Bank of Commerce (NASDAQ:BOCH)
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