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 and the nine months
ended September 30, 2016. Net income available to common
shareholders for the quarter ended September 30, 2016 was $2.4
million or $0.18 per share – diluted, compared with $2.5 million or
$0.18 per share – diluted for the same period of 2015. Net income
available to common shareholders for the nine months ended
September 30, 2016 was $3.0 million or $0.22 per share – diluted
compared with $6.6 million or $0.49 per share – diluted for the
same period of 2015.
Financial highlights for the third quarter of
2016:
- Net income available to common shareholders of $2.4 million for
the three months ended September 30, 2016 was a decrease of $109
thousand (4%) from $2.5 million available to common shareholders
earned during the same period in the prior year
- Return on average assets declined to 0.86% for the third
quarter of 2016 compared to 0.99% for the same period in the prior
year
- Return on average equity improved to 10.10% for the third
quarter of 2016 compared to 9.12% for the same period in the prior
year
- Deposits at September 30, 2016 totaled $975.5 million, an
increase of $38.0 million (16% annualized) since June 30, 2016.
This growth which occurred in both our Sacramento and Redding
marketplaces was centered entirely in core deposits
- Gross loans at September 30, 2016 totaled $779.0 million, an
increase of $24.9 million (13% annualized) since June 30, 2016. All
of this growth occurred in the our Sacramento marketplace and is
the result of investments in our SBA division and in our expanded
Sacramento commercial banking group
- Nonperforming assets at September 30, 2016 totaled $10.9
million or 0.98% of total assets, a decrease of $803 thousand (27%
annualized) since June 30, 2016
- Tangible book value per common share was $6.84 at September 30,
2016 compared to $6.71 at June 30, 2016
Financial highlights for the nine months ended September
30, 2016:
- Net income available to common shareholders of $3.0 million for
the nine months ended September 30, 2016 was a decrease of $3.6
million (55%) from $6.6 million available to common shareholders
earned during the same period in the prior year. Net income for
2016 is negatively impacted by $3.0 million of branch acquisition
and balance sheet restructuring costs, a $546 thousand impairment
of an investment security and the write-off of a $363 thousand
deferred tax asset during prior quarters
- Return on average assets declined to 0.37% for the nine months
ended September 30, 2016 compared to 0.89% for the same period in
the prior year
- Return on average equity declined to 4.30% for the nine months
ended September 30, 2016 compared to 8.27% for the same period in
the prior year
- Deposits at September 30, 2016 totaled $975.5 million, an
increase of $171.8 million (29% annualized) since December 31,
2015
- Gross loans at September 30, 2016 totaled $779.0 million, an
increase of $62.3 million (12% annualized) since December 31,
2015
- Nonperforming assets at September 30, 2016 totaled $10.9
million or 0.98% of total assets, a decrease of $4.6 million (40%
annualized) compared to December 31, 2015
- Net loan loss recoveries of $669 thousand combined with
continuing improved asset quality resulted in no provision for loan
and lease losses
Randall S. Eslick, President and CEO commented: “We are pleased
with our strong organic growth in both loans and deposits during
the third quarter. This growth, and our improved asset quality were
possible only because of the hard work of our dedicated employees
and the loyalty of our customers. We thank them and will continue
to rely on them in the future to help us achieve our growth and
earnings goals.”
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, 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 |
|
For The Nine Months Ended |
|
Net income,
average assets and |
|
September 30, |
|
|
June 30, |
|
September 30, |
|
average shareholders' equity |
|
2016 |
|
|
2015 |
|
|
2016 |
|
2016 |
|
2015 |
|
Income available to
common shareholders |
|
$ |
2,366 |
|
|
$ |
2,475 |
|
|
$ |
1,556 |
|
|
$ |
2,962 |
|
$ |
6,566 |
|
Average total
assets |
|
$ |
1,093,918 |
|
|
$ |
992,034 |
|
|
$ |
1,064,186 |
|
|
$ |
1,064,210 |
|
$ |
988,303 |
|
Average shareholders'
equity |
|
$ |
93,238 |
|
|
$ |
107,704 |
|
|
$ |
91,317 |
|
|
$ |
91,959 |
|
$ |
106,186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected performance ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets |
|
|
0.86 |
% |
|
|
0.99 |
% |
|
|
0.59 |
% |
|
|
0.37 |
% |
|
0.89 |
% |
Return on average
equity |
|
|
10.10 |
% |
|
|
9.12 |
% |
|
|
6.85 |
% |
|
|
4.30 |
% |
|
8.27 |
% |
Efficiency ratio |
|
|
69.61 |
% |
|
|
60.17 |
% |
|
|
79.43 |
% |
|
|
85.08 |
% |
|
65.41 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and per share amounts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
- basic |
|
|
13,369 |
|
|
|
13,340 |
|
|
|
13,367 |
|
|
|
13,366 |
|
|
13,327 |
|
Weighted average shares
- diluted |
|
|
13,439 |
|
|
|
13,377 |
|
|
|
13,425 |
|
|
|
13,412 |
|
|
13,358 |
|
Earnings per share -
basic |
|
$ |
0.18 |
|
|
$ |
0.18 |
|
|
$ |
0.11 |
|
|
$ |
0.22 |
|
$ |
0.49 |
|
Earnings per share -
diluted |
|
$ |
0.18 |
|
|
$ |
0.18 |
|
|
$ |
0.11 |
|
|
$ |
0.22 |
|
$ |
0.49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At September 30, |
|
|
At June 30, |
|
|
|
Share and per share amounts |
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
|
|
|
Common shares
outstanding (1) |
|
|
13,439 |
|
|
|
13,374 |
|
|
|
13,439 |
|
|
|
|
|
|
|
|
Tangible book value per
common share |
|
$ |
6.84 |
|
|
$ |
6.64 |
|
|
$ |
6.71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank of Commerce
Holdings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1
capital ratio |
|
|
9.60 |
% |
|
|
9.96 |
% |
|
|
9.69 |
% |
|
|
|
|
|
|
|
Tier 1 capital ratio
(2) |
|
|
10.65 |
% |
|
|
13.25 |
% |
|
|
10.77 |
% |
|
|
|
|
|
|
|
Total capital ratio
(2) |
|
|
12.96 |
% |
|
|
14.50 |
% |
|
|
13.11 |
% |
|
|
|
|
|
|
|
Tier 1 leverage ratio
(2) |
|
|
9.28 |
% |
|
|
11.98 |
% |
|
|
9.34 |
% |
|
|
|
|
|
|
|
Tangible common equity
ratio |
|
|
8.30 |
% |
|
|
8.96 |
% |
|
|
8.44 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redding Bank of
Commerce |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1
capital ratio |
|
|
12.62 |
% |
|
|
13.20 |
% |
|
|
12.80 |
% |
|
|
|
|
|
|
|
Tier 1 capital
ratio |
|
|
12.62 |
% |
|
|
13.20 |
% |
|
|
12.80 |
% |
|
|
|
|
|
|
|
Total capital
ratio |
|
|
13.87 |
% |
|
|
14.45 |
% |
|
|
14.05 |
% |
|
|
|
|
|
|
|
Tier 1 leverage
ratio |
|
|
11.03 |
% |
|
|
11.95 |
% |
|
|
11.14 |
% |
|
|
|
|
|
|
|
(1)
Includes unvested restricted shares issued in accordance with the
Bank's 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 September 30, 2016
compared to September 30, 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 applicable capital adequacy rules and regulations
promulgated by the Federal Reserve. The capital ratios for 2016
were also impacted by the addition of $1.8 million of core deposit
intangibles 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, 2016, the Company had total consolidated
assets of $1.1 billion, gross loans of $779.0 million, allowance
for loan and lease losses (“ALLL”) of $11.9 million, total deposits
of $975.5 million, and shareholders’ equity of $94.3 million.
TABLE 2 |
LOAN BALANCES BY TYPE -
UNAUDITED |
(amounts in thousands) |
|
At September 30, |
|
|
|
|
|
|
At June 30, |
|
|
|
% of |
|
|
|
% of |
|
Change |
|
|
|
% of |
|
2016 |
|
Total |
|
2015 |
|
Total |
|
Amount |
|
% |
|
2016 |
|
Total |
Commercial |
$ |
|
136,235 |
|
|
17 |
% |
|
$ |
|
144,749 |
|
|
20 |
% |
|
$ |
|
(8,514 |
) |
|
|
(6 |
) |
% |
|
$ |
|
150,410 |
|
|
20 |
% |
Real estate -
construction and land development |
|
|
48,365 |
|
|
6 |
|
|
|
|
29,701 |
|
|
4 |
|
|
|
|
18,664 |
|
|
|
63 |
|
% |
|
|
|
39,009 |
|
|
5 |
|
Real estate -
commercial non-owner occupied |
|
|
281,977 |
|
|
37 |
|
|
|
|
237,597 |
|
|
34 |
|
|
|
|
44,380 |
|
|
|
19 |
|
% |
|
|
|
253,873 |
|
|
35 |
|
Real estate -
commercial owner occupied |
|
|
160,474 |
|
|
21 |
|
|
|
|
151,762 |
|
|
21 |
|
|
|
|
8,712 |
|
|
|
6 |
|
% |
|
|
|
154,480 |
|
|
20 |
|
Real estate -
residential - ITIN |
|
|
46,458 |
|
|
6 |
|
|
|
|
50,162 |
|
|
7 |
|
|
|
|
(3,704 |
) |
|
|
(7 |
) |
% |
|
|
|
47,188 |
|
|
6 |
|
Real estate -
residential - 1-4 family mortgage |
|
|
10,770 |
|
|
1 |
|
|
|
|
12,185 |
|
|
2 |
|
|
|
|
(1,415 |
) |
|
|
(12 |
) |
% |
|
|
|
10,862 |
|
|
1 |
|
Real estate -
residential - equity lines |
|
|
42,363 |
|
|
5 |
|
|
|
|
45,733 |
|
|
6 |
|
|
|
|
(3,370 |
) |
|
|
(7 |
) |
% |
|
|
|
43,971 |
|
|
6 |
|
Consumer and other |
|
|
52,377 |
|
|
7 |
|
|
|
|
46,644 |
|
|
6 |
|
|
|
|
5,733 |
|
|
|
12 |
|
% |
|
|
|
54,347 |
|
|
7 |
|
Gross loans |
|
|
779,019 |
|
|
100 |
% |
|
|
|
718,533 |
|
|
100 |
% |
|
|
|
60,486 |
|
|
|
8 |
|
% |
|
|
|
754,140 |
|
|
100 |
% |
Deferred fees and
costs |
|
|
1,155 |
|
|
|
|
|
|
|
718 |
|
|
|
|
|
|
|
437 |
|
|
|
|
|
|
|
1,028 |
|
|
|
|
Loans, net of
deferred fees and costs |
|
|
780,174 |
|
|
|
|
|
|
|
719,251 |
|
|
|
|
|
|
|
60,923 |
|
|
|
|
|
|
|
755,168 |
|
|
|
|
Allowance for loan and
lease losses |
|
|
(11,849 |
) |
|
|
|
|
|
|
(10,891 |
) |
|
|
|
|
|
|
(958 |
) |
|
|
|
|
|
|
(11,864 |
) |
|
|
|
Net loans |
$ |
|
768,325 |
|
|
|
|
|
$ |
|
708,360 |
|
|
|
|
|
$ |
|
59,965 |
|
|
|
|
|
$ |
|
743,304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average yield on loans
during the quarter |
|
|
4.66 |
% |
|
|
|
|
|
|
4.70 |
% |
|
|
|
|
|
|
(0.04 |
) |
|
|
|
|
|
|
4.76 |
% |
|
|
|
The Company recorded gross loan balances of $779.0 million at
September 30, 2016, compared with $718.5 million and $754.1 million
at September 30, 2015 and June 30, 2016, respectively, an increase
of $60.5 million and $24.9 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 in our Sacramento
marketplace and is the result of investments in our SBA division
and in our expanded Sacramento commercial banking group.
The increase in the ALLL at September 30, 2016 compared to the
same date a year ago resulted from net loan loss recoveries. 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 during the prior six
consecutive quarters. See table 8 for additional details of the
ALLL.
TABLE 3 |
CASH, CASH EQUIVALENTS, AND INVESTMENT
SECURITIES - UNAUDITED |
(amounts in thousands) |
|
|
At September 30, |
|
|
|
|
|
|
|
At June 30, |
|
|
|
|
% of |
|
|
|
% of |
|
Change |
|
|
|
% of |
|
|
2016 |
|
Total |
|
2015 |
|
Total |
|
Amount |
|
% |
|
2016 |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
|
$ |
|
19,699 |
|
|
7 |
% |
|
$ |
|
8,564 |
|
|
4 |
% |
|
$ |
|
11,135 |
|
|
|
130 |
|
% |
|
$ |
|
14,695 |
|
|
6 |
% |
Interest-bearing
deposits in other banks |
|
|
|
65,431 |
|
|
24 |
|
|
|
|
16,745 |
|
|
8 |
|
|
|
|
48,686 |
|
|
|
291 |
|
% |
|
|
|
51,345 |
|
|
20 |
|
Total cash and
cash equivalents |
|
|
|
85,130 |
|
|
31 |
|
|
|
|
25,309 |
|
|
12 |
|
|
|
|
59,821 |
|
|
|
236 |
|
% |
|
|
|
66,040 |
|
|
25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and
agencies |
|
|
— |
|
0 |
|
|
|
|
3,998 |
|
|
2 |
|
|
|
|
(3,998 |
) |
|
|
(100 |
) |
% |
|
|
|
3,262 |
|
|
1 |
|
Obligations of state
and political subdivisions |
|
|
|
59,952 |
|
|
22 |
|
|
|
|
57,453 |
|
|
26 |
|
|
|
|
2,499 |
|
|
|
4 |
|
% |
|
|
|
59,015 |
|
|
23 |
|
Residential mortgage
backed securities and collateralized mortgage obligations |
|
|
|
54,046 |
|
|
20 |
|
|
|
|
34,058 |
|
|
16 |
|
|
|
|
19,988 |
|
|
|
59 |
|
% |
|
|
|
45,015 |
|
|
17 |
|
Corporate
securities |
|
|
|
16,346 |
|
|
6 |
|
|
|
|
36,560 |
|
|
17 |
|
|
|
|
(20,214 |
) |
|
|
(55 |
) |
% |
|
|
|
22,313 |
|
|
9 |
|
Commercial mortgage
backed securities |
|
|
|
16,254 |
|
|
6 |
|
|
|
|
9,266 |
|
|
4 |
|
|
|
|
6,988 |
|
|
|
75 |
|
% |
|
|
|
14,865 |
|
|
6 |
|
Other asset backed
securities |
|
|
|
9,842 |
|
|
4 |
|
|
|
|
15,974 |
|
|
7 |
|
|
|
|
(6,132 |
) |
|
|
(38 |
) |
% |
|
|
|
13,436 |
|
|
5 |
|
Total investment
securities - AFS |
|
|
|
156,440 |
|
|
58 |
|
|
|
|
157,309 |
|
|
72 |
|
|
|
|
(869 |
) |
|
|
(1 |
) |
% |
|
|
|
157,906 |
|
|
61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Obligations of state
and political subdivisions - HTM |
|
|
|
31,771 |
|
|
11 |
|
|
|
|
36,093 |
|
|
16 |
|
|
|
|
(4,322 |
) |
|
|
(12 |
) |
% |
|
|
|
35,415 |
|
|
14 |
|
Total investment
securities - AFS and HTM |
|
|
|
188,211 |
|
|
69 |
|
|
|
|
193,402 |
|
|
88 |
|
|
|
|
(5,191 |
) |
|
|
(3 |
) |
% |
|
|
|
193,321 |
|
|
75 |
|
Total cash, cash
equivalents and investment securities |
|
$ |
|
273,341 |
|
|
100 |
% |
|
$ |
|
218,711 |
|
|
100 |
% |
|
$ |
|
54,630 |
|
|
|
25 |
|
% |
|
$ |
|
259,361 |
|
|
100 |
% |
Average yield on
interest bearing due from banks and investment securities during
the quarter |
|
|
|
2.11 |
% |
|
|
|
|
|
|
2.46 |
% |
|
|
|
|
|
|
(0.35 |
) |
|
|
|
|
|
|
2.37 |
% |
|
|
|
As of September 30, 2016, we maintained noninterest-bearing cash
positions at the Federal Reserve Bank and correspondent banks in
the amount of $19.7 million. We also held interest-bearing deposits
in the amount of $65.4 million. The sizeable increase in cash and
cash equivalents compared to the same period a year ago derives
from liquidity provided by the recent branch acquisition and strong
organic deposit growth. 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 $156.4 million
at September 30, 2016, compared with $157.3 million and $157.9
million at September 30, 2015 and June 30, 2016, 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 third quarter of 2016 we purchased 16
securities with a par value of $24.5 million and weighted average
yield of 1.90% and sold nine securities with a par value of $12.0
million and weighted average yield of 2.09%. The sales activity on
available for sale securities and calls on two held-to-maturity
securities resulted in $70 thousand in net realized gains. During
the same period, we received $14.2 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, 2016 and 2015 were $188.5 million
and 3.22% compared to $191.4 million and 3.40%, respectively.
During the second quarter of 2016, we recorded an
other-than-temporary impairment of $546 thousand on an investment
security. We did not recognize any additional other-than-temporary
impairment losses for the nine months ended September 30, 2016, or
during the year ended December 31, 2015.
At September 30, 2016, our net unrealized gains on
available-for-sale investment securities were $2.3 million compared
with $1.6 million and $2.6 million at September 30, 2015 and June
30, 2016, respectively. The decrease in net unrealized gains
between June 30, 2016 and September 30, 2016 is primarily due to
interest rate changes over the past three months.
TABLE 4 |
DEPOSITS BY TYPE - UNAUDITED |
(amounts in thousands) |
|
At September 30, |
|
|
|
|
|
|
|
At June 30, |
|
|
|
% of |
|
|
|
% of |
|
|
Change |
|
|
|
% of |
|
2016 |
|
Total |
|
2015 |
|
Total |
|
Amount |
|
% |
|
2016 |
|
Total |
Demand - noninterest
bearing |
$ |
|
254,435 |
|
|
26 |
% |
|
$ |
|
162,437 |
|
|
21 |
% |
|
$ |
|
91,998 |
|
|
|
57 |
|
% |
|
$ |
|
224,467 |
|
|
24 |
% |
Demand - interest
bearing |
|
|
394,525 |
|
|
40 |
|
|
|
|
295,209 |
|
|
38 |
|
|
|
|
99,316 |
|
|
|
34 |
|
% |
|
|
|
385,609 |
|
|
41 |
|
Total demand |
|
|
648,960 |
|
|
66 |
|
|
|
|
457,646 |
|
|
59 |
|
|
|
|
191,314 |
|
|
|
42 |
|
% |
|
|
|
610,076 |
|
|
65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
|
110,201 |
|
|
11 |
|
|
|
|
93,367 |
|
|
12 |
|
|
|
|
16,834 |
|
|
|
18 |
|
% |
|
|
|
105,228 |
|
|
11 |
|
Total non-maturing
deposits |
|
|
759,161 |
|
|
77 |
|
|
|
|
551,013 |
|
|
71 |
|
|
|
|
208,148 |
|
|
|
38 |
|
% |
|
|
|
715,304 |
|
|
76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of
deposit |
|
|
216,332 |
|
|
23 |
|
|
|
|
228,492 |
|
|
29 |
|
|
|
|
(12,160 |
) |
|
|
(5 |
) |
% |
|
|
|
222,252 |
|
|
24 |
|
Total deposits |
$ |
|
975,493 |
|
|
100 |
% |
|
$ |
|
779,505 |
|
|
100 |
% |
|
$ |
|
195,988 |
|
|
|
25 |
|
% |
|
$ |
|
937,556 |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rate on
interest bearing deposits during the quarter |
|
|
0.39 |
% |
|
|
|
|
|
|
0.49 |
% |
|
|
|
|
|
|
(0.10 |
) |
|
|
|
|
|
|
0.39 |
% |
|
|
|
Average rate on
all deposits during the quarter |
|
|
0.29 |
% |
|
|
|
|
|
|
0.39 |
% |
|
|
|
|
|
|
(0.10 |
) |
|
|
|
|
|
|
0.30 |
% |
|
|
|
Total deposits at September 30, 2016, increased $196.0 million
or 25% to $975.5 million compared to September 30, 2015, and
increased $37.9 thousand or 4% compared to June 30, 2016. Total
non-maturing deposits increased $208.1 million or 38% compared to
the same date a year ago and increased $44.2 million or 6% compared
to June 30, 2016. Certificates of deposit decreased $12.2 million
or 5% compared to the same date a year ago and decreased $5.9
million or 3% compared to June 30, 2016.
During the first quarter of 2016 the branch acquisition provided
an additional $149.0 million of deposits and we called and redeemed
$17.5 million of brokered certificates of deposit. At September 30,
2016, the deposits in the acquired branches totaled $140.3
million.
TABLE 5 |
WHOLESALE AND BROKERED DEPOSITS -
UNAUDITED |
(amounts in thousands) |
|
At September 30, |
|
At June 30, |
|
2016 |
|
2015 |
|
2016 |
CDARS / ICS reciprocal
deposits |
$ |
59,502 |
|
$ |
67,825 |
|
$ |
54,783 |
Third party brokered
time deposits |
|
— |
|
|
17,505 |
|
|
— |
Brokered deposits per
Call Report |
|
59,502 |
|
|
85,330 |
|
|
54,783 |
Online listing service
time deposits |
|
52,456 |
|
|
61,141 |
|
|
54,396 |
Total wholesale and
brokered deposits |
$ |
111,958 |
|
$ |
146,471 |
|
$ |
109,179 |
In accordance with regulatory Call Report instructions, the Bank
will file (or has filed) quarterly Call Reports which list brokered
deposits of $59.5 million, $85.3 million and $54.8 million at
September 30, 2016, September 30, 2015 and June 30, 2016,
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 |
|
|
2016 |
|
2015 |
|
Amount |
|
% |
|
2016 |
|
Amount |
|
% |
Interest income |
|
$ |
10,330 |
|
$ |
9,732 |
|
$ |
|
598 |
|
|
|
6 |
|
% |
|
$ |
10,257 |
|
$ |
|
73 |
|
|
|
1 |
|
% |
Interest expense |
|
|
1,054 |
|
|
1,277 |
|
|
|
(223 |
) |
|
|
(17 |
) |
% |
|
|
1,040 |
|
|
|
14 |
|
|
|
1 |
|
% |
Net interest
income |
|
|
9,276 |
|
|
8,455 |
|
|
|
821 |
|
|
|
10 |
|
% |
|
|
9,217 |
|
|
|
59 |
|
|
|
1 |
|
% |
Provision for
loan and lease losses |
|
|
— |
|
|
— |
|
|
— |
|
— |
% |
|
|
— |
|
|
— |
|
— |
% |
Noninterest income |
|
|
959 |
|
|
808 |
|
|
|
151 |
|
|
|
19 |
|
% |
|
|
437 |
|
|
|
522 |
|
|
|
119 |
|
% |
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branch
acquisition and balance sheet reconfiguration costs |
|
|
— |
|
|
— |
|
|
— |
|
— |
% |
|
|
168 |
|
|
|
(168 |
) |
|
|
(100 |
) |
% |
Other noninterest
expense |
|
|
7,125 |
|
|
5,574 |
|
|
|
1,551 |
|
|
|
28 |
|
% |
|
|
7,500 |
|
|
|
(375 |
) |
|
|
(5 |
) |
% |
Income before provision
for income taxes |
|
|
3,110 |
|
|
3,689 |
|
|
|
(579 |
) |
|
|
(16 |
) |
% |
|
|
1,986 |
|
|
|
1,124 |
|
|
|
57 |
|
% |
Provision for income
taxes |
|
|
744 |
|
|
1,164 |
|
|
|
(420 |
) |
|
|
(36 |
) |
% |
|
|
430 |
|
|
|
314 |
|
|
|
73 |
|
% |
Net
income |
|
$ |
2,366 |
|
$ |
2,525 |
|
$ |
|
(159 |
) |
|
|
(6 |
) |
% |
|
$ |
1,556 |
|
|
|
810 |
|
|
|
52 |
|
% |
Less: Preferred
dividends |
|
|
— |
|
|
50 |
|
|
|
(50 |
) |
|
|
(100 |
) |
% |
|
|
— |
|
|
— |
|
— |
% |
Income
available to common shareholders |
|
$ |
2,366 |
|
$ |
2,475 |
|
$ |
|
(109 |
) |
|
|
(4 |
) |
% |
|
$ |
1,556 |
|
$ |
|
810 |
|
|
|
52 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share |
|
$ |
0.18 |
|
$ |
0.18 |
|
$ |
— |
|
— |
% |
|
$ |
0.11 |
|
$ |
|
0.07 |
|
|
|
64 |
|
% |
Average basic
shares |
|
|
13,369 |
|
|
13,340 |
|
|
|
29 |
|
|
— |
% |
|
|
13,367 |
|
|
|
2 |
|
|
— |
% |
Diluted earnings per
share |
|
$ |
0.18 |
|
$ |
0.18 |
|
$ |
— |
|
— |
% |
|
$ |
0.11 |
|
$ |
|
0.07 |
|
|
|
64 |
|
% |
Average diluted
shares |
|
|
13,439 |
|
|
13,377 |
|
|
|
62 |
|
|
— |
% |
|
|
13,425 |
|
|
|
14 |
|
|
— |
% |
Dividends declared
per common share |
|
$ |
0.03 |
|
$ |
0.03 |
|
$ |
— |
|
— |
% |
|
$ |
0.03 |
|
$ |
— |
|
— |
% |
Third Quarter of 2016 Compared With Third Quarter of
2015
Net income available to common shareholders for the third
quarter of 2016 decreased $109 thousand compared to the third
quarter of 2015. In the current quarter, net interest income was
$821 thousand higher, noninterest income was $151 thousand higher
and the provision for income tax was $420 thousand lower. These
positive changes were offset by an increase in noninterest expense
of $1.6 million.
Net Interest Income
Net interest income increased $821 thousand over a year
previous.
Interest income for the three months ended September 30, 2016
increased $598 thousand or 6% to $10.3 million. Interest and fees
on loans increased $650 thousand primarily due to increased average
loan balances. Interest on interest bearing deposits due from banks
increased $42 thousand while interest on securities decreased $94
thousand.
Interest expense for the third quarter of 2016 decreased $223
thousand or 17% to $1.1 million. The net decrease was caused by the
following.
- Interest on FHLB term debt decreased $474 thousand. During the
first quarter of 2016 all FHLB term debt was repaid and an interest
rate hedge associated with $75.0 million of that debt was
terminated
- Interest on $20.0 million of senior and subordinated term debt
increased $289 thousand. The senior and subordinated term debt was
issued during the fourth quarter of 2015 to redeem $20.0 million of
preferred stock
- Interest on interest bearing deposits decreased $52 thousand.
Interest bearing deposits increased $104.0 million compared to the
prior year, but the rate paid on all interest bearing deposits
decreased by 10 basis points
- Interest on junior subordinated debentures and other borrowings
increased $14 thousand
Noninterest Income
Noninterest income for the three months ended September 30, 2016
increased $151 thousand compared to the same period a year ago. Our
branch and offsite ATM acquisition completed in the first quarter,
enhanced point of sale and ATM fees by $191 thousand and service
charges on deposit accounts by $81 thousand for the quarter ended
September 30, 2016 compared to the same period a year ago. These
positive changes were partially offset by a decrease in the gain on
sale investment securities of $67 thousand compared to same period
a year ago.
Noninterest Expense
Noninterest expense for the three months ended September 30,
2016 increased $1.6 million compared to the same period a year ago.
The increase was primarily driven by increased costs to operate the
five newly acquired branches and three offsite ATM locations.
Noninterest expenses that increased during the current quarter
compared to the same period a year ago included the following:
- Salaries and occupancy costs directly related to the newly
acquired branch and offsite ATM locations of $617 thousand
- Salaries and occupancy costs for all other locations increased
$403 thousand primarily as a result of investment in our Sacramento
marketplace commercial banking group
- Data processing fees increased $221 thousand
- ATM processing fees increased $57 thousand as a result of the
additional activity at the recently acquired branch and offsite ATM
locations
- Telecommunications expense increased $83 thousand
Income Tax Provision
During the three months ended September 30, 2016, the Company
recorded a provision for income taxes of $744 thousand (23.92% of
pretax income) compared with a provision for income taxes of $1.2
million (31.55% of pretax income) for the same period a year ago.
The Company’s 2016 effective tax rate has declined as a result of
increased permanent deductions arising from investments in low
income housing partnerships. Tax credits are essentially unchanged
between the two quarters.
Third Quarter of 2016 Compared With Second Quarter of
2016
Net income available to common shareholders for the third
quarter of 2016 increased $810 thousand over the second quarter of
2016. In the current quarter, net interest income was $59 thousand
higher, noninterest income was $522 thousand higher and noninterest
expenses were $543 thousand lower. These positive changes were
offset by a an increase in the provision for income taxes of $314
thousand.
Net Interest Income
Net interest income increased $59 thousand over the prior
quarter.
Interest income for the three months ended September 30, 2016
increased $73 thousand or 1% to $10.3 million compared to the prior
quarter. Interest and fees on loans increased $211 thousand due to
increased average balances. Interest on interest bearing deposits
due from banks increased $17 thousand due to increased average
balances. These positive changes were partially offset by decreased
interest on securities of $155 thousand due to decreased yields and
decreased average balances.
Interest expense for the three months September 30, 2016
increased $14 thousand or 1% to $1.1 million compared to the prior
quarter. Average total deposits for the third quarter of 2016
increased $28.5 million from the second quarter of 2016. The growth
was in low cost core deposits with a resulting one basis point
decline in the cost of total deposits.
Noninterest Income
Noninterest income for the three months ended September 30, 2016
increased $522 thousand compared to the prior quarter. During the
prior quarter we recorded a $546 thousand other-than-temporary
impairment on an investment security as described in Note 4 to our
June 30, 2016 Form 10-Q. Net gains recognized on the sales and
calls of investment securities during the current quarter
increased by $42 thousand to $70 thousand compared to a $28
thousand net gain in the prior quarter.
Noninterest Expense
Noninterest expense for the three months ended September 30,
2016 decreased $543 thousand compared to the prior quarter.
The decrease in noninterest expense was primarily driven by
following positive items:
- Branch acquisition and balance sheet reconfiguration costs
decreased $168 thousand
- Professional service fees decreased $167 thousand
- Salaries and related benefits costs decreased $118
thousand
- Deferred loan origination costs increased $95 thousand
- Other real estate owned holding costs decreased $56
thousand
These positive items were partially offset by increased data
processing fees of $90 thousand and increased premise and equipment
costs of $84 thousand.
Income Tax Provision
During the three months ended September 30, 2016, we recorded a
provision for income taxes of $744 thousand (23.92% of pretax
income) compared with a provision for income taxes of $430 thousand
(21.65% of pretax income) for the prior quarter.
Earnings Per Share
Diluted earnings per share available to common shareholders were
$0.18 for the three months ended September 30, 2016 compared with
diluted earnings per share available to common shareholders of
$0.18 for the same period a year ago, and $0.11 for the prior
period. The number of shares outstanding during these periods has
not changed significantly. Changes in earnings per share are the
result of changes in net income.
TABLE 7 |
NET INTEREST MARGIN - UNAUDITED |
(amounts in thousands) |
|
For The Three Months Ended |
|
September 30, |
|
Change |
|
June 30, |
|
Change |
|
2016 |
|
2015 |
|
Amount |
|
2016 |
|
Amount |
Yield on average
interest earning assets |
|
4.03 |
% |
|
|
4.17 |
% |
|
|
|
(0.14 |
) |
|
|
4.16 |
% |
|
|
|
(0.13 |
) |
Interest expense to
fund average earning assets |
|
0.41 |
% |
|
|
0.55 |
% |
|
|
|
(0.14 |
) |
|
|
0.42 |
% |
|
|
|
(0.01 |
) |
Net interest margin -
nominal |
|
3.62 |
% |
|
|
3.62 |
% |
|
|
|
0.00 |
|
|
|
3.74 |
% |
|
|
|
(0.12 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield on average
interest earning assets - tax equivalent basis |
|
4.14 |
% |
|
|
4.30 |
% |
|
|
|
(0.16 |
) |
|
|
4.29 |
% |
|
|
|
(0.15 |
) |
Interest expense to
fund average earning assets |
|
0.41 |
% |
|
|
0.55 |
% |
|
|
|
(0.14 |
) |
|
|
0.42 |
% |
|
|
|
(0.01 |
) |
Net interest margin -
tax equivalent basis |
|
3.73 |
% |
|
|
3.75 |
% |
|
|
|
(0.02 |
) |
|
|
3.87 |
% |
|
|
|
(0.14 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average earning
assets |
$ |
1,019,230 |
|
|
$ |
927,547 |
|
|
$ |
|
91,683 |
|
|
$ |
990,132 |
|
|
$ |
|
29,098 |
|
Average interest
bearing liabilities |
$ |
749,103 |
|
|
$ |
709,958 |
|
|
$ |
|
39,145 |
|
|
$ |
740,579 |
|
|
$ |
|
8,524 |
|
The current quarter net interest margin decreased 12 basis
points to 3.62% as compared to the prior quarter due to decreased
yields in both the loan and investment portfolios. In the current
interest rate environment, cash flows from maturities and
repayments are being reinvested at interest rates lower than the
maturing instruments.
The net interest margin was 3.62% for the current quarter and
the same period a year ago. The 14 basis point decrease in yield on
average earning assets has been offset by a 14 basis point decrease
in interest expense to fund average earning assets. The
decrease in interest expense resulted from our acquisition of low
cost core deposits and our ability to restructure our balance
sheet.
Deposit balances increased $37.9 million and $196.0 million
compared to the prior quarter and the same period a year ago
respectively. The increase in deposit balances compared to the
prior quarter was centered entirely in core deposits. The increase
in deposit balances compared to the same period a year ago results
from both the recent branch acquisition and strong organic growth.
Our overall cost of total deposits decreased to 0.29% for the
quarter ended September 30, 2016 from 0.39% for the same period a
year ago and from 0.30% 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, |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
|
2015 |
Beginning balance |
$ |
|
11,864 |
|
|
|
$ |
|
11,495 |
|
|
|
$ |
|
11,180 |
|
|
|
$ |
|
10,891 |
|
|
|
$ |
|
11,402 |
|
|
Provision for loan and
lease losses charged to expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Loans charged off |
|
|
(357 |
) |
|
|
|
|
(1,734 |
) |
|
|
|
|
(307 |
) |
|
|
|
|
(707 |
) |
|
|
|
|
(779 |
) |
|
Loan loss
recoveries |
|
|
342 |
|
|
|
|
|
2,103 |
|
|
|
|
|
622 |
|
|
|
|
|
996 |
|
|
|
|
|
268 |
|
|
Ending balance |
$ |
|
11,849 |
|
|
|
$ |
|
11,864 |
|
|
|
$ |
|
11,495 |
|
|
|
$ |
|
11,180 |
|
|
|
$ |
|
10,891 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At September 30, |
|
At June 30, |
|
At March 31, |
|
At December 31, |
|
At September 30, |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
|
2015 |
Nonaccrual loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
|
1,710 |
|
|
|
$ |
|
2,149 |
|
|
|
$ |
|
2,563 |
|
|
|
$ |
|
1,994 |
|
|
|
$ |
|
2,506 |
|
|
Real estate -
commercial non-owner occupied |
|
|
1,196 |
|
|
|
|
|
1,197 |
|
|
|
|
|
1,197 |
|
|
|
|
|
5,488 |
|
|
|
|
|
5,154 |
|
|
Real estate -
commercial owner occupied |
|
|
800 |
|
|
|
|
|
816 |
|
|
|
|
|
1,190 |
|
|
|
|
|
1,071 |
|
|
|
|
|
1,928 |
|
|
Real estate -
residential - ITIN |
|
|
3,392 |
|
|
|
|
|
3,664 |
|
|
|
|
|
3,705 |
|
|
|
|
|
3,649 |
|
|
|
|
|
4,228 |
|
|
Real estate -
residential - 1-4 family mortgage |
|
|
1,798 |
|
|
|
|
|
1,824 |
|
|
|
|
|
1,742 |
|
|
|
|
|
1,775 |
|
|
|
|
|
1,669 |
|
|
Real estate -
residential - equity lines |
|
|
942 |
|
|
|
|
|
995 |
|
|
|
|
|
1,270 |
|
|
|
|
— |
|
|
|
|
23 |
|
|
Consumer and other |
|
|
252 |
|
|
|
|
|
266 |
|
|
|
|
|
31 |
|
|
|
|
|
32 |
|
|
|
|
|
33 |
|
|
Total nonaccrual
loans |
|
|
10,090 |
|
|
|
|
|
10,911 |
|
|
|
|
|
11,698 |
|
|
|
|
|
14,009 |
|
|
|
|
|
15,541 |
|
|
Accruing troubled debt
restructured loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
726 |
|
|
|
|
|
760 |
|
|
|
|
|
40 |
|
|
|
|
|
49 |
|
|
|
|
|
56 |
|
|
Real estate -
commercial non-owner occupied |
|
|
811 |
|
|
|
|
|
816 |
|
|
|
|
|
821 |
|
|
|
|
|
824 |
|
|
|
|
|
828 |
|
|
Real estate -
residential - ITIN |
|
|
5,280 |
|
|
|
|
|
5,336 |
|
|
|
|
|
5,502 |
|
|
|
|
|
5,458 |
|
|
|
|
|
5,423 |
|
|
Real estate -
residential - equity lines |
|
|
543 |
|
|
|
|
|
548 |
|
|
|
|
|
553 |
|
|
|
|
|
558 |
|
|
|
|
|
563 |
|
|
Total accruing troubled
debt restructured loans |
|
|
7,360 |
|
|
|
|
|
7,460 |
|
|
|
|
|
6,916 |
|
|
|
|
|
6,889 |
|
|
|
|
|
6,870 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All other accruing
impaired loans |
|
|
483 |
|
|
|
|
|
550 |
|
|
|
|
|
488 |
|
|
|
|
|
492 |
|
|
|
|
|
494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired
loans |
$ |
|
17,933 |
|
|
|
$ |
|
18,921 |
|
|
|
$ |
|
19,102 |
|
|
|
$ |
|
21,390 |
|
|
|
$ |
|
22,905 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans outstanding
at period end |
$ |
|
779,019 |
|
|
|
$ |
|
754,140 |
|
|
|
$ |
|
724,243 |
|
|
|
$ |
|
716,639 |
|
|
|
$ |
|
718,533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for
loan and lease losses as a percent of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans |
|
|
1.52 |
|
% |
|
|
|
1.57 |
|
% |
|
|
|
1.59 |
|
% |
|
|
|
1.56 |
|
% |
|
|
|
1.52 |
|
% |
Nonaccrual loans |
|
|
117.43 |
|
% |
|
|
|
108.73 |
|
% |
|
|
|
98.26 |
|
% |
|
|
|
79.81 |
|
% |
|
|
|
70.08 |
|
% |
Impaired loans |
|
|
66.07 |
|
% |
|
|
|
62.70 |
|
% |
|
|
|
60.18 |
|
% |
|
|
|
52.27 |
|
% |
|
|
|
47.55 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans to
gross loans |
|
|
1.30 |
|
% |
|
|
|
1.45 |
|
% |
|
|
|
1.62 |
|
% |
|
|
|
1.95 |
|
% |
|
|
|
2.16 |
|
% |
We realized net loan charge offs of $15 thousand in the current
quarter compared with net loan loss recoveries of $369 thousand in
the prior quarter and net loan charge offs of $511 thousand for the
same period a year ago. Charge offs during the third quarter of
2016 of $219 thousand were primarily associated with purchased
consumer loans, offset by recoveries of $277 thousand primarily
associated with one commercial relationship.
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 this quarter or
the previous five consecutive quarters. Our ALLL as a percentage of
gross loans was 1.52% as of September 30, 2016 compared to 1.52% as
of September 30, 2015 and 1.57% as of June 30, 2016. 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, 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 September 30, 2016, the recorded investment in loans
classified as impaired totaled $17.9 million, with a corresponding
valuation allowance of $925 thousand compared to impaired loans of
$22.9 million with a corresponding valuation allowance of $789
thousand at September 30, 2015 and impaired loans of $18.9 million,
with a corresponding valuation allowance of $903 thousand at June
30, 2016. 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 September 30, |
|
At June 30, |
|
At March 31, |
|
At December 31, |
|
At September 30, |
|
|
2016 |
|
2016 |
|
2016 |
|
2015 |
|
2015 |
Nonaccrual |
|
$ |
3,795 |
|
|
$ |
3,785 |
|
|
$ |
4,516 |
|
|
$ |
9,015 |
|
|
$ |
11,149 |
|
Accruing |
|
|
7,360 |
|
|
|
7,460 |
|
|
|
6,916 |
|
|
|
6,889 |
|
|
|
6,870 |
|
Total troubled debt
restructurings |
|
$ |
11,155 |
|
|
$ |
11,245 |
|
|
$ |
11,432 |
|
|
$ |
15,904 |
|
|
$ |
18,019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of total
gross loans |
|
|
1.43 |
% |
|
|
1.49 |
% |
|
|
1.58 |
% |
|
|
2.22 |
% |
|
|
2.51 |
% |
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.
During the three months ended September 30, 2016, the Company
restructured two loans; one to grant a maturity modification and
the other to grant a principal reduction modification. The loans
were classified as troubled debt restructurings and placed on
nonaccrual status. As of September 30, 2016, we had 119
restructured loans that qualified as troubled debt restructurings,
of which 110 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, |
|
|
2016 |
|
2016 |
|
2016 |
|
2015 |
|
2015 |
Total nonaccrual
loans |
|
$ |
10,090 |
|
|
$ |
10,911 |
|
|
$ |
11,698 |
|
|
$ |
14,009 |
|
|
$ |
15,541 |
|
90 days past due and
still accruing |
|
|
— |
|
|
|
10 |
|
|
|
— |
|
|
|
88 |
|
|
|
52 |
|
Total nonperforming
loans |
|
|
10,090 |
|
|
|
10,921 |
|
|
|
11,698 |
|
|
|
14,097 |
|
|
|
15,593 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other real estate
owned |
|
|
793 |
|
|
|
765 |
|
|
|
1,011 |
|
|
|
1,423 |
|
|
|
1,525 |
|
Total nonperforming
assets |
|
$ |
10,883 |
|
|
$ |
11,686 |
|
|
$ |
12,709 |
|
|
$ |
15,520 |
|
|
$ |
17,118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to
gross loans |
|
|
1.30 |
% |
|
|
1.45 |
% |
|
|
1.62 |
% |
|
|
1.97 |
% |
|
|
2.17 |
% |
Nonperforming assets to
total assets |
|
|
0.98 |
% |
|
|
1.09 |
% |
|
|
1.18 |
% |
|
|
1.53 |
% |
|
|
1.73 |
% |
At September 30, 2016, September 30, 2015 and June 30, 2016, the
recorded investment in OREO was $793 thousand, $1.5 million and
$765 thousand, respectively. The September 30, 2016 OREO balance
consists of five properties, of which two are 1-4 family
residential real estate properties in the amount of $109 thousand,
two are nonfarm nonresidential properties in the amount of $558
thousand and one is an undeveloped commercial property in the
amount of $126 thousand.
TABLE
11 |
UNAUDITED
CONSOLIDATED |
BALANCE
SHEET |
(amounts in
thousands, except per share data) |
|
|
At September 30, |
|
At September 30, |
|
Change |
|
At June 30, |
|
|
2016 |
|
2015 |
|
$ |
|
% |
|
2016 |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
|
$ |
|
19,699 |
|
|
$ |
|
8,564 |
|
|
$ |
|
11,135 |
|
|
|
130 |
|
% |
|
$ |
|
14,695 |
|
Interest-bearing
deposits in other banks |
|
|
|
65,431 |
|
|
|
|
16,745 |
|
|
|
|
48,686 |
|
|
|
291 |
|
% |
|
|
|
51,345 |
|
Total cash and
cash equivalents |
|
|
|
85,130 |
|
|
|
|
25,309 |
|
|
|
|
59,821 |
|
|
|
236 |
|
% |
|
|
|
66,040 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
available-for-sale, at fair value |
|
|
|
156,440 |
|
|
|
|
157,309 |
|
|
|
|
(869 |
) |
|
|
(1 |
) |
% |
|
|
|
157,906 |
|
Securities
held-to-maturity, at amortized cost |
|
|
|
31,771 |
|
|
|
|
36,093 |
|
|
|
|
(4,322 |
) |
|
|
(12 |
) |
% |
|
|
|
35,415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of deferred
fees and costs |
|
|
|
780,174 |
|
|
|
|
719,251 |
|
|
|
|
60,923 |
|
|
|
8 |
|
% |
|
|
|
755,168 |
|
Allowance for loan and
lease losses |
|
|
|
(11,849 |
) |
|
|
|
(10,891 |
) |
|
|
|
(958 |
) |
|
|
9 |
|
% |
|
|
|
(11,864 |
) |
Net loans |
|
|
|
768,325 |
|
|
|
|
708,360 |
|
|
|
|
59,965 |
|
|
|
8 |
|
% |
|
|
|
743,304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises and equipment,
net |
|
|
|
15,930 |
|
|
|
|
11,112 |
|
|
|
|
4,818 |
|
|
|
43 |
|
% |
|
|
|
15,660 |
|
Other real estate
owned |
|
|
|
793 |
|
|
|
|
1,525 |
|
|
|
|
(732 |
) |
|
|
(48 |
) |
% |
|
|
|
765 |
|
Life insurance |
|
|
|
22,946 |
|
|
|
|
22,326 |
|
|
|
|
620 |
|
|
|
3 |
|
% |
|
|
|
22,794 |
|
Deferred taxes |
|
|
|
8,171 |
|
|
|
|
10,638 |
|
|
|
|
(2,467 |
) |
|
|
(23 |
) |
% |
|
|
|
8,026 |
|
Goodwill and core
deposit intangibles, net |
|
|
|
2,307 |
|
|
|
— |
|
|
|
2,307 |
|
|
|
100 |
|
% |
|
|
|
2,362 |
|
Other assets |
|
|
|
19,205 |
|
|
|
|
18,057 |
|
|
|
|
1,148 |
|
|
|
6 |
|
% |
|
|
|
17,920 |
|
Total assets |
|
$ |
|
1,111,018 |
|
|
$ |
|
990,729 |
|
|
$ |
|
120,289 |
|
|
|
12 |
|
% |
|
$ |
|
1,070,192 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand - noninterest
bearing |
|
$ |
|
254,435 |
|
|
$ |
|
162,437 |
|
|
$ |
|
91,998 |
|
|
|
57 |
|
% |
|
$ |
|
224,467 |
|
Demand - interest
bearing |
|
|
|
394,525 |
|
|
|
|
295,209 |
|
|
|
|
99,316 |
|
|
|
34 |
|
% |
|
|
|
385,609 |
|
Savings |
|
|
|
110,201 |
|
|
|
|
93,367 |
|
|
|
|
16,834 |
|
|
|
18 |
|
% |
|
|
|
105,228 |
|
Certificates of
deposit |
|
|
|
216,332 |
|
|
|
|
228,492 |
|
|
|
|
(12,160 |
) |
|
|
(5 |
) |
% |
|
|
|
222,252 |
|
Total
deposits |
|
|
|
975,493 |
|
|
|
|
779,505 |
|
|
|
|
195,988 |
|
|
|
25 |
|
% |
|
|
|
937,556 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term debt |
|
|
|
19,317 |
|
|
|
|
75,000 |
|
|
|
|
(55,683 |
) |
|
|
(74 |
) |
% |
|
|
|
19,577 |
|
Unamortized debt
issuance costs |
|
|
|
(193 |
) |
|
|
— |
|
|
|
(193 |
) |
|
|
100 |
|
% |
|
|
|
(201 |
) |
Net term
debt |
|
|
|
19,124 |
|
|
|
|
75,000 |
|
|
|
|
(55,876 |
) |
|
|
(75 |
) |
% |
|
|
|
19,376 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Junior subordinated
debentures |
|
|
|
10,310 |
|
|
|
|
10,310 |
|
|
|
— |
|
|
0 |
|
% |
|
|
|
10,310 |
|
Other liabilities |
|
|
|
11,798 |
|
|
|
|
17,239 |
|
|
|
|
(5,441 |
) |
|
|
(32 |
) |
% |
|
|
|
10,462 |
|
Total
liabilities |
|
|
|
1,016,725 |
|
|
|
|
882,054 |
|
|
|
|
134,671 |
|
|
|
15 |
|
% |
|
|
|
977,704 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
|
— |
|
|
|
19,931 |
|
|
|
|
(19,931 |
) |
|
|
(100 |
) |
% |
|
|
— |
Common stock |
|
|
|
24,483 |
|
|
|
|
24,180 |
|
|
|
|
303 |
|
|
|
1 |
|
% |
|
|
|
24,421 |
|
Retained earnings |
|
|
|
68,321 |
|
|
|
|
65,232 |
|
|
|
|
3,089 |
|
|
|
5 |
|
% |
|
|
|
66,356 |
|
Accumulated other
comprehensive income (loss), net of tax |
|
|
|
1,489 |
|
|
|
|
(668 |
) |
|
|
|
2,157 |
|
|
|
(323 |
) |
% |
|
|
|
1,711 |
|
Total
shareholders' equity |
|
|
|
94,293 |
|
|
|
|
108,675 |
|
|
|
|
(14,382 |
) |
|
|
(13 |
) |
% |
|
|
|
92,488 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity |
|
$ |
|
1,111,018 |
|
|
$ |
|
990,729 |
|
|
$ |
|
120,289 |
|
|
|
12 |
|
% |
|
$ |
|
1,070,192 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest earning
assets |
|
$ |
|
1,031,527 |
|
|
$ |
|
927,773 |
|
|
$ |
|
103,754 |
|
|
|
11 |
|
% |
|
$ |
|
997,211 |
|
Shares outstanding |
|
|
|
13,439 |
|
|
|
|
13,374 |
|
|
|
|
|
|
|
|
|
|
13,439 |
|
Tangible book value per
share |
|
$ |
|
6.84 |
|
|
$ |
|
6.64 |
|
|
|
|
|
|
|
|
$ |
|
6.71 |
|
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, |
|
|
2016 |
|
2015 |
|
$ |
|
% |
|
2016 |
|
2016 |
|
2015 |
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and
fees on loans |
|
$ |
9,007 |
|
$ |
8,357 |
|
$ |
|
650 |
|
|
|
8 |
|
% |
|
$ |
|
8,796 |
|
|
$ |
|
26,254 |
|
|
$ |
24,572 |
Interest on
securities |
|
|
689 |
|
|
743 |
|
|
|
(54 |
) |
|
|
(7 |
) |
% |
|
|
|
808 |
|
|
|
|
2,281 |
|
|
|
2,489 |
Interest on
tax-exempt securities |
|
|
552 |
|
|
592 |
|
|
|
(40 |
) |
|
|
(7 |
) |
% |
|
|
|
588 |
|
|
|
|
1,734 |
|
|
|
1,793 |
Interest on
deposits in other banks |
|
|
82 |
|
|
40 |
|
|
|
42 |
|
|
|
105 |
|
% |
|
|
|
65 |
|
|
|
|
222 |
|
|
|
167 |
Total interest
income |
|
|
10,330 |
|
|
9,732 |
|
|
|
598 |
|
|
|
6 |
|
% |
|
|
|
10,257 |
|
|
|
|
30,491 |
|
|
|
29,021 |
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
demand deposits |
|
|
136 |
|
|
116 |
|
|
|
20 |
|
|
|
17 |
|
% |
|
|
|
130 |
|
|
|
|
388 |
|
|
|
339 |
Interest on
savings deposits |
|
|
43 |
|
|
53 |
|
|
|
(10 |
) |
|
|
(19 |
) |
% |
|
|
|
41 |
|
|
|
|
129 |
|
|
|
162 |
Interest on
certificates of deposit |
|
|
524 |
|
|
586 |
|
|
|
(62 |
) |
|
|
(11 |
) |
% |
|
|
|
515 |
|
|
|
|
1,636 |
|
|
|
1,771 |
Interest on term
debt |
|
|
292 |
|
|
475 |
|
|
|
(183 |
) |
|
|
(39 |
) |
% |
|
|
|
295 |
|
|
|
|
1,369 |
|
|
|
1,187 |
Interest on
other borrowings |
|
|
59 |
|
|
47 |
|
|
|
12 |
|
|
|
26 |
|
% |
|
|
|
59 |
|
|
|
|
172 |
|
|
|
143 |
Total interest
expense |
|
|
1,054 |
|
|
1,277 |
|
|
|
(223 |
) |
|
|
(17 |
) |
% |
|
|
|
1,040 |
|
|
|
|
3,694 |
|
|
|
3,602 |
Net interest
income |
|
|
9,276 |
|
|
8,455 |
|
|
|
821 |
|
|
|
10 |
|
% |
|
|
|
9,217 |
|
|
|
|
26,797 |
|
|
|
25,419 |
Provision for loan and
lease losses |
|
|
— |
|
|
— |
|
|
— |
|
— |
% |
|
|
— |
|
|
— |
|
|
— |
Net interest
income after provision for loan and lease losses |
|
|
9,276 |
|
|
8,455 |
|
|
|
821 |
|
|
|
10 |
|
% |
|
|
|
9,217 |
|
|
|
|
26,797 |
|
|
|
25,419 |
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges
on deposit accounts |
|
|
133 |
|
|
52 |
|
|
|
81 |
|
|
|
156 |
|
% |
|
|
|
88 |
|
|
|
|
293 |
|
|
|
153 |
Payroll and
benefit processing fees |
|
|
133 |
|
|
138 |
|
|
|
(5 |
) |
|
|
(4 |
) |
% |
|
|
|
139 |
|
|
|
|
432 |
|
|
|
416 |
Earnings on cash
surrender value - life insurance |
|
|
152 |
|
|
158 |
|
|
|
(6 |
) |
|
|
(4 |
) |
% |
|
|
|
153 |
|
|
|
|
461 |
|
|
|
482 |
Gain on
investment securities, net |
|
|
70 |
|
|
137 |
|
|
|
(67 |
) |
|
|
(49 |
) |
% |
|
|
|
28 |
|
|
|
|
192 |
|
|
|
413 |
Impairment
losses on investment securities |
|
|
— |
|
|
— |
|
|
— |
|
— |
% |
|
|
|
(546 |
) |
|
|
|
(546 |
) |
|
|
— |
ATM and point of
sale |
|
|
287 |
|
|
96 |
|
|
|
191 |
|
|
|
199 |
|
% |
|
|
|
335 |
|
|
|
|
714 |
|
|
|
279 |
Other
income |
|
|
184 |
|
|
227 |
|
|
|
(43 |
) |
|
|
(19 |
) |
% |
|
|
|
240 |
|
|
|
|
799 |
|
|
|
800 |
Total noninterest
income |
|
|
959 |
|
|
808 |
|
|
|
151 |
|
|
|
19 |
|
% |
|
|
|
437 |
|
|
|
|
2,345 |
|
|
|
2,543 |
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, |
|
|
2016 |
|
2015 |
|
$ |
|
% |
|
2016 |
|
2016 |
|
2015 |
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
related benefits |
|
|
3,873 |
|
|
3,208 |
|
|
|
665 |
|
|
|
21 |
|
% |
|
|
4,086 |
|
|
12,188 |
|
|
10,693 |
Occupancy and
equipment |
|
|
1,071 |
|
|
714 |
|
|
|
357 |
|
|
|
50 |
|
% |
|
|
987 |
|
|
2,847 |
|
|
2,157 |
Federal Deposit
Insurance Corporation insurance premium |
|
|
176 |
|
|
159 |
|
|
|
17 |
|
|
|
11 |
|
% |
|
|
181 |
|
|
513 |
|
|
544 |
Data processing
fees |
|
|
464 |
|
|
243 |
|
|
|
221 |
|
|
|
91 |
|
% |
|
|
374 |
|
|
1,142 |
|
|
736 |
Professional
service fees |
|
|
303 |
|
|
337 |
|
|
|
(34 |
) |
|
|
(10 |
) |
% |
|
|
470 |
|
|
1,209 |
|
|
1,167 |
Telecommunications |
|
|
199 |
|
|
116 |
|
|
|
83 |
|
|
|
72 |
|
% |
|
|
199 |
|
|
545 |
|
|
335 |
Branch
acquisition costs |
|
|
— |
|
|
— |
|
|
— |
|
— |
% |
|
|
168 |
|
|
580 |
|
|
— |
Loss on
cancellation of interest rate swap |
|
|
— |
|
|
— |
|
|
— |
|
— |
% |
|
|
— |
|
|
2,325 |
|
|
— |
Other
expenses |
|
|
1,039 |
|
|
797 |
|
|
|
242 |
|
|
|
30 |
|
% |
|
|
1,203 |
|
|
3,445 |
|
|
2,657 |
Total noninterest
expense |
|
|
7,125 |
|
|
5,574 |
|
|
|
1,551 |
|
|
|
28 |
|
% |
|
|
7,668 |
|
|
24,794 |
|
|
18,289 |
Income before provision
for income taxes |
|
|
3,110 |
|
|
3,689 |
|
|
|
(579 |
) |
|
|
(16 |
) |
% |
|
|
1,986 |
|
|
4,348 |
|
|
9,673 |
Deferred tax asset
write-off |
|
|
— |
|
|
— |
|
|
— |
|
— |
% |
|
|
— |
|
|
363 |
|
|
— |
Provision for income
taxes |
|
|
744 |
|
|
1,164 |
|
|
|
(420 |
) |
|
|
(36 |
) |
% |
|
|
430 |
|
|
1,023 |
|
|
2,957 |
Net income |
|
$ |
2,366 |
|
$ |
2,525 |
|
$ |
|
(159 |
) |
|
|
(6 |
) |
% |
|
$ |
1,556 |
|
$ |
2,962 |
|
$ |
6,716 |
Less: Preferred
dividends |
|
|
— |
|
|
50 |
|
|
|
(50 |
) |
|
|
(100 |
) |
% |
|
|
— |
|
|
— |
|
|
150 |
Income available to
common shareholders |
|
$ |
2,366 |
|
$ |
2,475 |
|
$ |
|
(109 |
) |
|
|
(4 |
) |
% |
|
$ |
1,556 |
|
$ |
2,962 |
|
$ |
6,566 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share |
|
$ |
0.18 |
|
$ |
0.18 |
|
$ |
— |
|
— |
% |
|
$ |
0.11 |
|
$ |
0.22 |
|
$ |
0.49 |
Average basic
shares |
|
|
13,369 |
|
|
13,340 |
|
|
|
29 |
|
|
— |
% |
|
|
13,367 |
|
|
13,366 |
|
|
13,327 |
Diluted earnings per
share |
|
$ |
0.18 |
|
$ |
0.18 |
|
$ |
— |
|
— |
% |
|
$ |
0.11 |
|
$ |
0.22 |
|
$ |
0.49 |
Average diluted
shares |
|
|
13,439 |
|
|
13,377 |
|
|
|
62 |
|
|
— |
% |
|
|
13,425 |
|
|
13,412 |
|
|
13,358 |
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, |
|
|
2016 |
|
2015 |
|
2015 |
|
2014 |
|
2013 |
Earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
744,370 |
|
$ |
694,082 |
|
$ |
699,227 |
|
$ |
625,166 |
|
$ |
612,780 |
Taxable securities |
|
|
119,541 |
|
|
124,199 |
|
|
120,897 |
|
|
147,916 |
|
|
157,486 |
Tax exempt
securities |
|
|
76,315 |
|
|
76,755 |
|
|
77,089 |
|
|
83,973 |
|
|
92,854 |
Interest-bearing
deposits in other banks |
|
|
52,930 |
|
|
28,021 |
|
|
30,323 |
|
|
56,465 |
|
|
43,342 |
Average earning
assets |
|
|
993,156 |
|
|
923,057 |
|
|
927,536 |
|
|
913,520 |
|
|
906,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
|
|
15,455 |
|
|
10,832 |
|
|
11,220 |
|
|
11,246 |
|
|
10,624 |
Premises and equipment,
net |
|
|
14,657 |
|
|
11,738 |
|
|
11,552 |
|
|
12,105 |
|
|
10,337 |
Other assets |
|
|
40,942 |
|
|
42,676 |
|
|
42,423 |
|
|
36,936 |
|
|
26,431 |
Average total
assets |
|
$ |
1,064,210 |
|
$ |
988,303 |
|
$ |
992,731 |
|
$ |
973,807 |
|
$ |
953,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand - noninterest
bearing |
|
$ |
214,540 |
|
$ |
151,567 |
|
$ |
156,578 |
|
$ |
139,792 |
|
$ |
122,011 |
Demand - interest
bearing |
|
|
365,917 |
|
|
276,446 |
|
|
283,105 |
|
|
272,383 |
|
|
244,125 |
Savings |
|
|
102,427 |
|
|
92,565 |
|
|
92,659 |
|
|
91,108 |
|
|
92,502 |
Certificates of
deposit |
|
|
222,286 |
|
|
242,569 |
|
|
238,626 |
|
|
259,445 |
|
|
248,350 |
Total deposits |
|
|
905,170 |
|
|
763,147 |
|
|
770,968 |
|
|
762,728 |
|
|
706,988 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase
agreements |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
5,780 |
Term debt |
|
|
43,435 |
|
|
91,941 |
|
|
88,874 |
|
|
77,534 |
|
|
107,603 |
Junior subordinated
debentures |
|
|
10,310 |
|
|
10,310 |
|
|
10,310 |
|
|
15,239 |
|
|
15,465 |
Other liabilities |
|
|
13,336 |
|
|
16,719 |
|
|
16,588 |
|
|
15,934 |
|
|
11,825 |
Average total
liabilities |
|
|
972,251 |
|
|
882,117 |
|
|
886,740 |
|
|
871,435 |
|
|
847,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity |
|
|
91,959 |
|
|
106,186 |
|
|
105,991 |
|
|
102,372 |
|
|
106,193 |
Average liabilities
& shareholders' equity |
|
$ |
1,064,210 |
|
$ |
988,303 |
|
$ |
992,731 |
|
$ |
973,807 |
|
$ |
953,854 |
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, |
|
|
2016 |
|
2016 |
|
2016 |
|
2015 |
|
2015 |
Earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
769,354 |
|
$ |
742,684 |
|
$ |
720,795 |
|
$ |
714,494 |
|
$ |
705,762 |
Taxable securities |
|
|
114,578 |
|
|
124,183 |
|
|
119,917 |
|
|
111,098 |
|
|
115,165 |
Tax exempt
securities |
|
|
73,952 |
|
|
77,168 |
|
|
77,852 |
|
|
78,081 |
|
|
76,190 |
Interest-bearing
deposits in other banks |
|
|
61,346 |
|
|
46,097 |
|
|
51,254 |
|
|
37,158 |
|
|
30,430 |
Average earning
assets |
|
|
1,019,230 |
|
|
990,132 |
|
|
969,818 |
|
|
940,831 |
|
|
927,547 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
|
|
17,018 |
|
|
17,028 |
|
|
12,301 |
|
|
12,372 |
|
|
11,355 |
Premises and equipment,
net |
|
|
15,941 |
|
|
15,632 |
|
|
12,384 |
|
|
11,001 |
|
|
11,265 |
Other assets |
|
|
41,729 |
|
|
41,394 |
|
|
39,700 |
|
|
41,666 |
|
|
41,867 |
Average total
assets |
|
$ |
1,093,918 |
|
$ |
1,064,186 |
|
$ |
1,034,203 |
|
$ |
1,005,870 |
|
$ |
992,034 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand - noninterest
bearing |
|
$ |
240,418 |
|
$ |
220,377 |
|
$ |
182,539 |
|
$ |
171,449 |
|
$ |
158,232 |
Demand - interest
bearing |
|
|
390,895 |
|
|
382,811 |
|
|
323,771 |
|
|
302,862 |
|
|
284,508 |
Savings |
|
|
107,210 |
|
|
103,990 |
|
|
96,027 |
|
|
92,939 |
|
|
93,230 |
Certificates of
deposit |
|
|
221,078 |
|
|
223,958 |
|
|
221,836 |
|
|
226,924 |
|
|
235,551 |
Total deposits |
|
|
959,601 |
|
|
931,136 |
|
|
824,173 |
|
|
794,174 |
|
|
771,521 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term debt |
|
|
19,610 |
|
|
19,510 |
|
|
91,444 |
|
|
79,772 |
|
|
86,359 |
Junior subordinated
debentures |
|
|
10,310 |
|
|
10,310 |
|
|
10,310 |
|
|
10,310 |
|
|
10,310 |
Other liabilities |
|
|
11,159 |
|
|
11,913 |
|
|
16,969 |
|
|
16,197 |
|
|
16,140 |
Average total
liabilities |
|
|
1,000,680 |
|
|
972,869 |
|
|
942,896 |
|
|
900,453 |
|
|
884,330 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity |
|
|
93,238 |
|
|
91,317 |
|
|
91,307 |
|
|
105,417 |
|
|
107,704 |
Average liabilities
& shareholders' equity |
|
$ |
1,093,918 |
|
$ |
1,064,186 |
|
$ |
1,034,203 |
|
$ |
1,005,870 |
|
$ |
992,034 |
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 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”.
Investment firms making a market in BOCH stock
are:
Raymond James Financial John T. Cavender 555 Market Street San
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
OfficerTelephone Direct (530) 722-3900
Samuel D. Jimenez, Executive Vice President and Chief Operating
OfficerTelephone Direct (530) 722-3952
James A. Sundquist, Executive Vice President and Chief Financial
OfficerTelephone Direct (530) 722-3908
Andrea Schneck, Vice President and Senior Administrative
OfficerTelephone Direct (530) 722-3959
Bank of Commerce (NASDAQ:BOCH)
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