CBB Bancorp, Inc. ("CBB" or the "Company') (OTCQX: CBBI), the holding company of Commonwealth Business Bank, doing business as “CBB Bank” (the "Bank"), announced today net income of $5.7 million for the first quarter 2024, or $0.54 per diluted share, a decrease of 19.0% compared to $7.0 million, or $0.66 per diluted share, in the prior quarter and a decrease of 20.0% compared to $7.1 million, or $0.67 per diluted share, in the same period last year.
OVERALL RESULTS
Net income for the first quarter 2024 decreased from the prior quarter primarily due to lower net interest income, higher provision expense for credit losses offset by a negative credit loss expense related to off-balance-sheet financial instruments, and higher noninterest expenses offset by higher gain on sale of loans. The return on average assets for the first quarter 2024 was 1.32% compared to 1.54% for the fourth quarter 2023 and 1.59% for the first quarter 2023. The return on average equity for the first quarter 2024 was 9.57%, compared to 11.94% for the fourth quarter 2023 and 13.45% for the first quarter 2023. The efficiency ratio for the first quarter 2024 was 54.68%, compared to 49.45% for the fourth quarter 2023 and 51.04% for the first quarter 2023.
James Hong, President and CEO, commented, “In the present economic climate characterized by elevated interest rates, fostering growth poses a formidable challenge. However, CBB is committed to pursuing an expansion strategy in 2024, with a specific emphasis on penetrating untapped markets along the East Coast. To that end, our primary strategic objective for the forthcoming year is to establish a robust presence in the East Coast market, where we have yet to establish a foothold, but where we believe there are considerable opportunities.”
INCOME STATEMENT
Net Interest Income
Net interest income for the first quarter 2024 was $15.8 million, a decrease of $1.4 million, or 7.9%, from the fourth quarter 2023, and a decrease of $3.3 million, or 17.1%, from the first quarter 2023. The decrease in net interest income compared with both the fourth quarter 2023 and the first quarter 2023 was due to relatively higher increases in interest expenses on deposits.
Net Interest Margin
The net interest margin for the first quarter 2024 was 3.77%, compared to 3.86% for the fourth quarter 2023 and 4.38% for the first quarter 2023. The decrease in the net interest margin from the prior quarter and from the same quarter of 2023 is due primarily to the rising cost of funds. The cost of funds for the first quarter 2024 increased to 3.48% compared to 3.20% for the fourth quarter 2023 and 2.10% for the first quarter 2023.
Provision for Credit Losses
Credit loss expense of a net $400 thousand was recorded for the first quarter 2024. This amount was comprised of provision expense for credit losses of $743 thousand offset by a $343 thousand reduction in ACL related to off-balance-sheet financial instruments. No provisions for credit losses was recorded for the fourth quarter 2023 or the first quarter 2023.
Refer to the financial tables in this press release for additional information and trends.
Noninterest Income
Noninterest income in the first quarter 2024 was $2.6 million, an increase of $597 thousand compared to $2.0 million for the fourth quarter 2023, and an increase of $1.5 million compared to $1.1 million in the first quarter 2023. The quarter-over-quarter increase in noninterest income was primarily the result of higher gain on sale of loans. The Bank sold approximately $28.2 million in SBA loans with an average premium of 8.4% during the first quarter 2024 compared to sale of $21.7 million in SBA loans with an average premium of 6.7% during the fourth quarter 2023. There was no sale of loans during the first quarter 2023.
Noninterest Expense
Noninterest expense for the first quarter 2024 was $10.0 million, compared to $9.5 million for the fourth quarter 2023 and $10.3 million for the first quarter 2023. Salaries and employee benefits expenses totaled $6.0 million for the first quarter 2024 compared to $5.4 million for the fourth quarter 2023 and $6.1 million for the first quarter 2023.
Please refer to financial tables in this press release for additional information and trends.
Income Taxes
The Company’s effective tax rate for the first quarter 2024 was 28.4% compared to 27.6% for fourth quarter 2023 and 28.1% for first quarter 2023.
BALANCE SHEET
Investment Securities
Investment securities were $59.1 million at March 31, 2024, a decrease of $0.7 million, or 1.2% from December 31, 2023, and a decrease of $9.8 million or 14.2% from March 31, 2023. The decreases were due to principal paydowns and an absence of portfolio additions during the first quarter of 2024. Management believes that the Bank currently has adequate liquidity and does not need to sell securities for liquidity purposes.
Loans Receivable
Loans receivable (including loans held-for-sale) at March 31, 2024, was $1.39 billion, a decrease of $29.7 million, or 2.1% from December 31, 2023, and a decrease of $74.0 million, or 5.0%, from March 31, 2023. The decrease in loans receivable since last quarter, paired with the reduction from the previous year, reflects diminished loan demand amid the prevailing high-interest rate environment.
Allowance for Credit Losses and Asset Quality
The allowance for credit losses at March 31, 2024, was $16.0 million or 1.34% of loans held-for-investment, compared to $15.3 million at December 31, 2023, or 1.27% of loans held-for-investment, and compared to $15.6 million at March 31, 2023, or 1.28% of total loans held-for-investment. Total Nonperforming assets at March 31, 2024 were $4.4 million, compared to $2.5 million at December 31, 2023, and $0.6 million at March 31, 2023. The coverage ratio of allowance for credit losses to nonperforming assets was over 360% at March 31, 2024.
SBA Loans Held-for-Sale
Total SBA loans held-for-sale at March 31, 2024, was $198.2 million, compared to $218.3 million at December 31 2023, and $243.8 million at March 31, 2023. We continue to assess SBA loan market premiums and plan to sell loans when it is advantageous to do so.
Deposits
Total deposits were $1.36 billion at March 31, 2024, down $92.6 million, or 6.4%, from December 31, 2023, and down $176.3 million, or 11.5%, from March 31, 2023. DDAs were 21.6% of total deposits for both March 31, 2024 and December 31, 2023, and 28.6% at March 31, 2023. NOW and MMDA deposits comprised 16.9% of total deposits at March 31, 2024, compared to 16.3% at December 31, 2023, and 13.8% at March 31, 2023. The quarter-over-quarter and year-over-year declines in DDAs can be attributed to the higher interest rate environment. Depositors were eager to capitalize on the rising interest rates, moving funds from DDA to Savings, MMDA, CD or some combination thereof.
Borrowings
The Bank has maintained $50.0 million of Federal Home Loan Bank advances since March 31, 2023. The blended cost of FHLB advances was 0.94% as of March 31, 2024.
Capital
Stockholders’ equity was $240.6 million at March 31, 2024, representing an increase of $4.9 million, or 2.1%, from $235.7 million at December 31, 2023. Tangible book value per share at March 31, 2024, was $22.49, compared with $22.03 at December 31, 2023, an increase of $0.46, or 2.1% per share.
Each of the Company’s and the Bank’s regulatory capital ratios increased at March 31, 2024, when compared to December 31, 2023, and March 31, 2023. Capital ratios continue to exceed the minimum levels required to be considered “Well Capitalized” under the applicable regulatory capital rules.
The Common Equity Tier 1 Risked-Based Capital Ratios at March 31, 2024, were 18.67% and 18.65% for the Company and the Bank, respectively, and Total Capital Ratios were 19.92% and 19.91% for the Company and the Bank, respectively. The Common Equity Tier 1 Risked-Based Capital Ratios at March 31, 2023, were 16.15% and 16.10% for the Company and the Bank, respectively, and Total Capital Ratios were 17.37% and 17.31% for the Company and the Bank, respectively.
About CBB Bancorp, Inc.:
CBB Bancorp, Inc. is the holding company of Commonwealth Business Bank, a full-service commercial bank which specializes in loans to small-to-medium-sized businesses and does business as “CBB Bank.” As of March 31, 2024, the Bank had eleven full-service banking offices in Los Angeles and Orange Counties in California, Dallas County in Texas and Honolulu, Hawaii; two SBA regional offices in Los Angeles and Dallas Counties; and loan production offices in Georgia and Washington. For additional information, please go to www.cbb-bank.com under the tab “About Us” and select “Investor Relations” to see the 1Q 2024 Overview.
FORWARD-LOOKING STATEMENTS:
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. CBB Bancorp, Inc. (the “Company”) intends that such forward-looking statements be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Future events are difficult to predict, and the expectations described herein are necessarily subject to risks and uncertainties that may cause actual results to differ materially and adversely from those described herein. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. Factors that might cause actual results to differ materially from those presented, either expressed or implied, in this news release include, but are not limited to: the Company’s ability to successfully execute its business plans and achieve its objectives; changes in general economic and financial market conditions, either nationally or locally in areas in which the Company conducts its operations; changes in interest rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Company’s operations or business; loss of key personnel; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies.
The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances, except to the extent required by law.
Schedules and Financial Data: All tables and data to follow
STATEMENT OF INCOME AND PERFORMANCE HIGHLIGHT (Unaudited) - Table 1 |
||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Three Months Ended |
||||||||||||||||||||||||
|
|
March 31, |
|
December 31, |
|
$ |
|
% |
|
March 31, |
|
$ |
|
% |
||||||||||||
|
|
2024 |
|
2023 |
|
Change |
|
Change |
|
2023 |
|
Change |
|
Change |
||||||||||||
| Interest income | $ |
28,463 |
|
$ |
29,624 |
|
$ |
(1,161 |
) |
(3.9 |
%) |
$ |
27,248 |
|
$ |
1,215 |
|
4.5 |
% |
|||||||
| Interest expense |
|
12,655 |
|
|
12,462 |
|
|
193 |
|
1.5 |
% |
|
8,168 |
|
|
4,487 |
|
54.9 |
% |
|||||||
| Net interest income |
|
15,808 |
|
|
17,162 |
|
|
(1,354 |
) |
(7.9 |
%) |
|
19,080 |
|
|
(3,272 |
) |
(17.1 |
%) |
|||||||
| Provision for credit losses |
|
400 |
|
|
- |
|
|
400 |
|
100.0 |
% |
|
- |
|
|
400 |
|
100.0 |
% |
|||||||
| Net interest income after provision for credit losses |
|
15,408 |
|
|
17,162 |
|
|
(1,754 |
) |
(10.2 |
%) |
|
19,080 |
|
|
(3,672 |
) |
(19.2 |
%) |
|||||||
| Gain on sale of loans |
|
1,489 |
|
|
838 |
|
|
651 |
|
77.7 |
% |
|
- |
|
|
1,489 |
|
100.0 |
% |
|||||||
| SBA servicing fee income, net |
|
643 |
|
|
690 |
|
|
(47 |
) |
(6.8 |
%) |
|
654 |
|
|
(11 |
) |
(1.7 |
%) |
|||||||
| Service charges and other income |
|
429 |
|
|
436 |
|
|
(7 |
) |
(1.6 |
%) |
|
398 |
|
|
31 |
|
7.8 |
% |
|||||||
| Noninterest income |
|
2,561 |
|
|
1,964 |
|
|
597 |
|
30.4 |
% |
|
1,052 |
|
|
1,509 |
|
143.4 |
% |
|||||||
| Salaries and employee benefits |
|
6,024 |
|
|
5,356 |
|
|
668 |
|
12.5 |
% |
|
6,079 |
|
|
(55 |
) |
(0.9 |
%) |
|||||||
| Occupancy and equipment |
|
1,122 |
|
|
1,128 |
|
|
(6 |
) |
(0.5 |
%) |
|
1,124 |
|
|
(2 |
) |
(0.2 |
%) |
|||||||
| Marketing expense |
|
402 |
|
|
250 |
|
|
152 |
|
60.8 |
% |
|
374 |
|
|
28 |
|
7.5 |
% |
|||||||
| Professional expense |
|
412 |
|
|
360 |
|
|
52 |
|
14.4 |
% |
|
454 |
|
|
(42 |
) |
(9.3 |
%) |
|||||||
| Other expenses |
|
2,084 |
|
|
2,363 |
|
|
(279 |
) |
(11.8 |
%) |
|
2,244 |
|
|
(160 |
) |
(7.1 |
%) |
|||||||
| Noninterest expense |
|
10,044 |
|
|
9,457 |
|
|
587 |
|
6.2 |
% |
|
10,275 |
|
|
(231 |
) |
(2.2 |
%) |
|||||||
| Income before income tax provision |
|
7,925 |
|
|
9,669 |
|
|
(1,744 |
) |
(18.0 |
%) |
|
9,857 |
|
|
(1,932 |
) |
(19.6 |
%) |
|||||||
| Income tax provision |
|
2,253 |
|
|
2,670 |
|
|
(417 |
) |
(15.6 |
%) |
|
2,767 |
|
|
(514 |
) |
(18.6 |
%) |
|||||||
| Net income | $ |
5,672 |
|
$ |
6,999 |
|
$ |
(1,327 |
) |
(19.0 |
%) |
$ |
7,090 |
|
$ |
(1,418 |
) |
(20.0 |
%) |
|||||||
| Effective tax rate |
|
28.4 |
% |
|
27.6 |
% |
|
0.8 |
% |
3.0 |
% |
|
28.1 |
% |
|
0.4 |
% |
1.3 |
% |
|||||||
| Outstanding number of shares |
|
10,588,136 |
|
|
10,588,136 |
|
|
- |
|
- |
|
|
10,588,136 |
|
|
- |
|
- |
|
|||||||
| Weighted average shares for basic EPS |
|
10,588,136 |
|
|
10,588,136 |
|
|
- |
|
- |
|
|
10,576,191 |
|
|
11,945 |
|
0.1 |
% |
|||||||
| Weighted average shares for diluted EPS |
|
10,588,688 |
|
|
10,588,937 |
|
|
(249 |
) |
(0.0 |
%) |
|
10,600,189 |
|
|
(11,501 |
) |
(0.1 |
%) |
|||||||
| Basic EPS | $ |
0.54 |
|
$ |
0.66 |
|
$ |
(0.12 |
) |
(18.2 |
%) |
$ |
0.67 |
|
$ |
(0.13 |
) |
(19.4 |
%) |
|||||||
| Diluted EPS | $ |
0.54 |
|
$ |
0.66 |
|
$ |
(0.12 |
) |
(18.2 |
%) |
$ |
0.67 |
|
$ |
(0.13 |
) |
(19.4 |
%) |
|||||||
| Return on average assets |
|
1.32 |
% |
|
1.54 |
% |
|
(0.22 |
%) |
(14.3 |
%) |
|
1.59 |
% |
|
(0.27 |
%) |
(17.0 |
%) |
|||||||
| Return on average equity |
|
9.57 |
% |
|
11.94 |
% |
|
(2.37 |
%) |
(19.9 |
%) |
|
13.45 |
% |
|
(3.88 |
%) |
(28.9 |
%) |
|||||||
| Efficiency ratio¹ |
|
54.68 |
% |
|
49.45 |
% |
|
5.23 |
% |
10.6 |
% |
|
51.04 |
% |
|
3.64 |
% |
7.1 |
% |
|||||||
| Yield on interest-earning assets² |
|
6.77 |
% |
|
6.65 |
% |
|
0.12 |
% |
1.8 |
% |
|
6.24 |
% |
|
0.53 |
% |
8.5 |
% |
|||||||
| Cost of funds |
|
3.48 |
% |
|
3.20 |
% |
|
0.28 |
% |
8.8 |
% |
|
2.10 |
% |
|
1.38 |
% |
65.7 |
% |
|||||||
| Net interest margin² |
|
3.77 |
% |
|
3.86 |
% |
|
(0.09 |
%) |
(2.3 |
%) |
|
4.38 |
% |
|
(0.61 |
%) |
(13.9 |
%) |
|||||||
¹ |
Represents the ratio of noninterest expense less other real estate owned operations to the sum of net interest income before provision for credit losses and total noninterest income. |
|
² |
Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate |
|
BALANCE SHEET, CAPITAL AND OTHER DATA (Unaudited) - Table 2 |
||||||||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
March 31, |
|
December 31, |
|
$ |
|
% |
|
March 31, |
|
$ |
|
% |
||||||||||||
|
|
2024 |
|
2023 |
|
Change |
|
Change |
|
2023 |
|
Change |
|
Change |
||||||||||||
| ASSETS | ||||||||||||||||||||||||||
| Cash and due from banks | $ |
11,612 |
|
$ |
14,282 |
|
$ |
(2,670 |
) |
(18.7 |
%) |
$ |
13,788 |
|
$ |
(2,176 |
) |
(15.8 |
%) |
|||||||
| Interest-earning deposits at the FRB and other banks |
|
181,366 |
|
|
233,255 |
|
|
(51,889 |
) |
(22.2 |
%) |
|
240,602 |
|
|
(59,236 |
) |
(24.6 |
%) |
|||||||
| Investment securities¹ |
|
59,143 |
|
|
59,883 |
|
|
(740 |
) |
(1.2 |
%) |
|
68,943 |
|
|
(9,800 |
) |
(14.2 |
%) |
|||||||
| Loans held-for-sale |
|
198,167 |
|
|
218,258 |
|
|
(20,091 |
) |
(9.2 |
%) |
|
243,753 |
|
|
(45,586 |
) |
(18.7 |
%) |
|||||||
| Loans held-for-investment |
|
1,194,439 |
|
|
1,204,009 |
|
|
(9,570 |
) |
(0.8 |
%) |
|
1,222,867 |
|
|
(28,428 |
) |
(2.3 |
%) |
|||||||
| Less: Allowance for credit losses ("ACL") |
|
(16,048 |
) |
|
(15,291 |
) |
|
(757 |
) |
(5.0 |
%) |
|
(15,627 |
) |
|
(421 |
) |
(2.7 |
%) |
|||||||
| Loans held-for-investment, net |
|
1,178,391 |
|
|
1,188,718 |
|
|
(10,327 |
) |
(0.9 |
%) |
|
1,207,240 |
|
|
(28,849 |
) |
(2.4 |
%) |
|||||||
| Other real estate owned ("OREO") |
|
- |
|
|
55 |
|
|
(55 |
) |
-100.0 |
% |
|
- |
|
|
- |
|
- |
|
|||||||
| Restricted stock investments |
|
11,011 |
|
|
11,011 |
|
|
- |
|
- |
|
|
10,121 |
|
|
890 |
|
8.8 |
% |
|||||||
| Servicing assets |
|
7,560 |
|
|
7,673 |
|
|
(113 |
) |
(1.5 |
%) |
|
8,528 |
|
|
(968 |
) |
(11.4 |
%) |
|||||||
| Goodwill |
|
2,185 |
|
|
2,185 |
|
|
- |
|
- |
|
|
2,185 |
|
|
- |
|
- |
|
|||||||
| Intangible assets |
|
245 |
|
|
255 |
|
|
(10 |
) |
(3.9 |
%) |
|
291 |
|
|
(46 |
) |
(15.8 |
%) |
|||||||
| Other assets |
|
23,581 |
|
|
24,838 |
|
|
(1,257 |
) |
(5.1 |
%) |
|
25,697 |
|
|
(2,116 |
) |
(8.2 |
%) |
|||||||
| Total assets | $ |
1,673,261 |
|
$ |
1,760,413 |
|
$ |
(87,152 |
) |
(5.0 |
%) |
$ |
1,821,148 |
|
$ |
(147,887 |
) |
(8.1 |
%) |
|||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||
| Noninterest-bearing | $ |
286,766 |
|
$ |
305,923 |
|
$ |
(19,157 |
) |
(6.3 |
%) |
$ |
428,559 |
|
$ |
(141,793 |
) |
(33.1 |
%) |
|||||||
| Interest-bearing |
|
1,074,198 |
|
|
1,147,662 |
|
|
(73,464 |
) |
(6.4 |
%) |
|
1,108,754 |
|
|
(34,556 |
) |
(3.1 |
%) |
|||||||
| Total deposits |
|
1,360,964 |
|
|
1,453,585 |
|
|
(92,621 |
) |
(6.4 |
%) |
|
1,537,313 |
|
|
(176,349 |
) |
(11.5 |
%) |
|||||||
| FHLB advances and other borrowing |
|
50,000 |
|
|
50,000 |
|
|
- |
|
- |
|
|
50,000 |
|
|
- |
|
- |
|
|||||||
| Other liabilities |
|
21,727 |
|
|
21,114 |
|
|
613 |
|
2.9 |
% |
|
17,651 |
|
|
4,076 |
|
23.1 |
% |
|||||||
| Total liabilities |
|
1,432,691 |
|
|
1,524,699 |
|
|
(92,008 |
) |
(6.0 |
%) |
|
1,604,964 |
|
|
(172,273 |
) |
(10.7 |
%) |
|||||||
| Stockholders' Equity |
|
240,570 |
|
|
235,714 |
|
|
4,856 |
|
2.1 |
% |
|
216,184 |
|
|
24,386 |
|
11.3 |
% |
|||||||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ |
1,673,261 |
|
$ |
1,760,413 |
|
$ |
(87,152 |
) |
(5.0 |
%) |
$ |
1,821,148 |
|
$ |
(147,887 |
) |
(8.1 |
%) |
|||||||
| CAPITAL RATIOS | ||||||||||||||||||||||||||
| Leverage ratio | ||||||||||||||||||||||||||
| Company |
|
13.85 |
% |
|
12.98 |
% |
|
0.88 |
% |
6.8 |
% |
|
11.86 |
% |
|
1.99 |
% |
16.8 |
% |
|||||||
| Bank |
|
13.84 |
% |
|
12.96 |
% |
|
0.88 |
% |
6.8 |
% |
|
11.82 |
% |
|
2.02 |
% |
17.1 |
% |
|||||||
| Common equity tier 1 risk-based capital ratio | ||||||||||||||||||||||||||
| Company |
|
18.67 |
% |
|
18.08 |
% |
|
0.60 |
% |
3.3 |
% |
|
16.15 |
% |
|
2.52 |
% |
15.6 |
% |
|||||||
| Bank |
|
18.65 |
% |
|
18.05 |
% |
|
0.61 |
% |
3.4 |
% |
|
16.10 |
% |
|
2.56 |
% |
15.9 |
% |
|||||||
| Tier 1 risk-based capital ratio | ||||||||||||||||||||||||||
| Company |
|
18.67 |
% |
|
18.08 |
% |
|
0.60 |
% |
3.3 |
% |
|
16.15 |
% |
|
2.52 |
% |
15.6 |
% |
|||||||
| Bank |
|
18.65 |
% |
|
18.05 |
% |
|
0.61 |
% |
3.4 |
% |
|
16.10 |
% |
|
2.56 |
% |
15.9 |
% |
|||||||
| Total risk-based capital ratio | ||||||||||||||||||||||||||
| Company |
|
19.92 |
% |
|
19.30 |
% |
|
0.63 |
% |
3.2 |
% |
|
17.37 |
% |
|
2.56 |
% |
14.7 |
% |
|||||||
| Bank |
|
19.91 |
% |
|
19.27 |
% |
|
0.63 |
% |
3.3 |
% |
|
17.31 |
% |
|
2.59 |
% |
15.0 |
% |
|||||||
| Tangible book value per share | $ |
22.49 |
|
$ |
22.03 |
|
$ |
0.46 |
|
2.1 |
% |
$ |
20.18 |
|
$ |
2.31 |
|
11.5 |
% |
|||||||
| Loans Held for Investments-to-Deposit ("LHFITD") ratio |
|
87.76 |
% |
|
82.83 |
% |
|
4.93 |
% |
6.0 |
% |
|
79.55 |
% |
|
8.21 |
% |
10.3 |
% |
|||||||
| Net Loan-to-Deposit ("LTD") ratio |
|
101.15 |
% |
|
96.79 |
% |
|
4.36 |
% |
4.5 |
% |
|
94.39 |
% |
|
6.76 |
% |
7.2 |
% |
|||||||
| Nonperforming assets | $ |
4,447 |
|
$ |
2,484 |
|
$ |
1,963 |
|
79.0 |
% |
$ |
636 |
|
$ |
3,811 |
|
599.2 |
% |
|||||||
| Nonperforming assets as a % of loans held-for-investment |
|
0.37 |
% |
|
0.21 |
% |
|
0.16 |
% |
76.2 |
% |
|
0.05 |
% |
|
0.32 |
% |
640.0 |
% |
|||||||
| ACL as a % of loans held-for-investment |
|
1.34 |
% |
|
1.27 |
% |
|
0.07 |
% |
5.51 |
% |
|
1.28 |
% |
|
0.06 |
% |
4.7 |
% |
|||||||
¹ |
Includes AFS and HTM |
|
FIVE-QUARTER STATEMENT OF INCOME (Unaudited) - Table 3 |
||||||||||||||||||||
(Dollars in thousands, except per share amounts) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
||||||||||
|
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
||||||||||
| Interest income | $ |
28,463 |
|
$ |
29,624 |
|
$ |
29,450 |
|
$ |
28,664 |
|
$ |
27,248 |
|
|||||
| Interest expense |
|
12,655 |
|
|
12,462 |
|
|
11,442 |
|
|
9,930 |
|
|
8,168 |
|
|||||
| Net interest income |
|
15,808 |
|
|
17,162 |
|
|
18,008 |
|
|
18,734 |
|
|
19,080 |
|
|||||
| Provision for credit losses |
|
400 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||
| Net interest income after provision for credit losses |
|
15,408 |
|
|
17,162 |
|
|
18,008 |
|
|
18,734 |
|
|
19,080 |
|
|||||
| Gain on sale of loans |
|
1,489 |
|
|
838 |
|
|
419 |
|
|
1,952 |
|
|
- |
|
|||||
| SBA servicing fee income, net |
|
643 |
|
|
690 |
|
|
639 |
|
|
440 |
|
|
654 |
|
|||||
| Service charges and other income |
|
429 |
|
|
436 |
|
|
402 |
|
|
407 |
|
|
398 |
|
|||||
| Noninterest income |
|
2,561 |
|
|
1,964 |
|
|
1,460 |
|
|
2,799 |
|
|
1,052 |
|
|||||
| Salaries and employee benefits |
|
6,024 |
|
|
5,356 |
|
|
5,569 |
|
|
5,581 |
|
|
6,079 |
|
|||||
| Occupancy and equipment |
|
1,122 |
|
|
1,128 |
|
|
1,103 |
|
|
1,122 |
|
|
1,124 |
|
|||||
| Marketing expense |
|
402 |
|
|
250 |
|
|
475 |
|
|
409 |
|
|
374 |
|
|||||
| Professional expense |
|
412 |
|
|
360 |
|
|
443 |
|
|
436 |
|
|
454 |
|
|||||
| Other expenses |
|
2,084 |
|
|
2,363 |
|
|
2,579 |
|
|
2,635 |
|
|
2,244 |
|
|||||
| Noninterest expense |
|
10,044 |
|
|
9,457 |
|
|
10,169 |
|
|
10,183 |
|
|
10,275 |
|
|||||
| Income before income tax expense |
|
7,925 |
|
|
9,669 |
|
|
9,299 |
|
|
11,350 |
|
|
9,857 |
|
|||||
| Income tax expense |
|
2,253 |
|
|
2,670 |
|
|
2,630 |
|
|
3,248 |
|
|
2,767 |
|
|||||
| Net income | $ |
5,672 |
|
$ |
6,999 |
|
$ |
6,669 |
|
$ |
8,102 |
|
$ |
7,090 |
|
|||||
| Effective tax rate |
|
28.4 |
% |
|
27.6 |
% |
|
28.3 |
% |
|
28.6 |
% |
|
28.1 |
% |
|||||
| Outstanding number of shares |
|
10,588,136 |
|
|
10,588,136 |
|
|
10,588,136 |
|
|
10,588,136 |
|
|
10,588,136 |
|
|||||
| Weighted average shares for basic EPS |
|
10,588,136 |
|
|
10,588,136 |
|
|
10,588,136 |
|
|
10,588,136 |
|
|
10,576,191 |
|
|||||
| Weighted average shares for diluted EPS |
|
10,588,688 |
|
|
10,588,937 |
|
|
10,594,155 |
|
|
10,591,351 |
|
|
10,600,189 |
|
|||||
| Basic EPS | $ |
0.54 |
|
$ |
0.66 |
|
$ |
0.63 |
|
$ |
0.77 |
|
$ |
0.67 |
|
|||||
| Diluted EPS | $ |
0.54 |
|
$ |
0.66 |
|
$ |
0.63 |
|
$ |
0.76 |
|
$ |
0.67 |
|
|||||
FIVE-QUARTER SALARIES BENEFIT METRICS (Unaudited) - Table 4 |
||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
At or for the Three Months Ended |
||||||||||||||||||
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
||||||||||
|
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
||||||||||
| Salaries and benefits | $ |
6,024 |
|
$ |
5,356 |
|
$ |
5,569 |
|
$ |
5,581 |
|
$ |
6,079 |
|
|||||
| FTE at the end of period |
|
168 |
|
|
169 |
|
|
172 |
|
|
165 |
|
|
170 |
|
|||||
| Average FTE during the period |
|
169 |
|
|
169 |
|
|
168 |
|
|
164 |
|
|
174 |
|
|||||
| Salaries and benefits/average FTE¹ | $ |
143 |
|
$ |
126 |
|
$ |
131 |
|
$ |
137 |
|
$ |
142 |
|
|||||
| Salaries and benefits/average assets¹ |
|
1.41 |
% |
|
1.18 |
% |
|
1.22 |
% |
|
1.23 |
% |
|
1.36 |
% |
|||||
| Noninterest expense/average assets¹ |
|
2.35 |
% |
|
2.08 |
% |
|
2.22 |
% |
|
2.25 |
% |
|
2.30 |
% |
|||||
¹ |
Annualized |
|
FIVE-QUARTER BALANCE SHEET (Unaudited) - Table 5 |
||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
||||||||||
|
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from banks | $ |
11,612 |
|
$ |
14,282 |
|
$ |
11,188 |
|
$ |
12,704 |
|
$ |
13,788 |
|
|||||
| Interest-earning deposits at the FRB and other banks |
|
181,366 |
|
|
233,255 |
|
|
335,016 |
|
|
293,394 |
|
|
240,602 |
|
|||||
| Investment securities |
|
59,143 |
|
|
59,883 |
|
|
61,617 |
|
|
66,400 |
|
|
68,943 |
|
|||||
| Loans held-for-sale |
|
198,167 |
|
|
218,258 |
|
|
219,355 |
|
|
215,083 |
|
|
243,753 |
|
|||||
| Loans held-for-investment |
|
1,194,439 |
|
|
1,204,009 |
|
|
1,201,230 |
|
|
1,201,237 |
|
|
1,222,867 |
|
|||||
| Less: Allowance for credit losses |
|
(16,048 |
) |
|
(15,291 |
) |
|
(15,284 |
) |
|
(15,626 |
) |
|
(15,627 |
) |
|||||
| Loans held-for-investment, net |
|
1,178,391 |
|
|
1,188,718 |
|
|
1,185,946 |
|
|
1,185,611 |
|
|
1,207,240 |
|
|||||
| Other real estate owned |
|
- |
|
|
55 |
|
|
55 |
|
|
- |
|
|
- |
|
|||||
| Restricted stock investments |
|
11,011 |
|
|
11,011 |
|
|
11,011 |
|
|
11,011 |
|
|
10,121 |
|
|||||
| Servicing assets |
|
7,560 |
|
|
7,673 |
|
|
7,873 |
|
|
8,426 |
|
|
8,528 |
|
|||||
| Goodwill |
|
2,185 |
|
|
2,185 |
|
|
2,185 |
|
|
2,185 |
|
|
2,185 |
|
|||||
| Intangible assets |
|
245 |
|
|
255 |
|
|
267 |
|
|
279 |
|
|
291 |
|
|||||
| Other assets |
|
23,581 |
|
|
24,838 |
|
|
24,799 |
|
|
24,537 |
|
|
25,697 |
|
|||||
| Total assets | $ |
1,673,261 |
|
$ |
1,760,413 |
|
$ |
1,859,312 |
|
$ |
1,819,630 |
|
$ |
1,821,148 |
|
|||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Noninterest-bearing | $ |
286,766 |
|
$ |
305,923 |
|
$ |
406,033 |
|
$ |
426,333 |
|
$ |
428,559 |
|
|||||
| Interest-bearing |
|
1,074,198 |
|
|
1,147,662 |
|
|
1,143,257 |
|
|
1,096,078 |
|
|
1,108,754 |
|
|||||
| Total deposits |
|
1,360,964 |
|
|
1,453,585 |
|
|
1,549,290 |
|
|
1,522,411 |
|
|
1,537,313 |
|
|||||
| FHLB advances |
|
50,000 |
|
|
50,000 |
|
|
50,000 |
|
|
50,000 |
|
|
50,000 |
|
|||||
| Other liabilities |
|
21,727 |
|
|
21,114 |
|
|
31,141 |
|
|
23,956 |
|
|
17,651 |
|
|||||
| Total liabilities |
|
1,432,691 |
|
|
1,524,699 |
|
|
1,630,431 |
|
|
1,596,367 |
|
|
1,604,964 |
|
|||||
| Stockholders' Equity |
|
240,570 |
|
|
235,714 |
|
|
228,881 |
|
|
223,263 |
|
|
216,184 |
|
|||||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ |
1,673,261 |
|
$ |
1,760,413 |
|
$ |
1,859,312 |
|
$ |
1,819,630 |
|
$ |
1,821,148 |
|
|||||
FIVE-QUARTER LOANS RECEIVABLE COMPONENTS (Unaudited) - Table 6 |
||||||||||||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
||||||||||||||||||||
|
|
Balance |
|
% |
|
Balance |
|
% |
|
Balance |
|
% |
|
Balance |
|
% |
|
Balance |
|
% |
||||||||||
| Construction | $ |
37,216 |
3.1 |
% |
$ |
34,886 |
2.9 |
% |
$ |
30,924 |
2.6 |
% |
$ |
20,106 |
1.7 |
% |
$ |
19,550 |
1.6 |
% |
||||||||||
| Commercial real estate |
|
1,005,765 |
84.2 |
% |
|
1,010,495 |
83.9 |
% |
|
1,005,735 |
83.7 |
% |
|
1,014,785 |
84.5 |
% |
|
1,033,124 |
84.5 |
% |
||||||||||
| Commercial and industrial |
|
101,784 |
8.5 |
% |
|
108,123 |
9.0 |
% |
|
113,374 |
9.4 |
% |
|
114,106 |
9.4 |
% |
|
114,184 |
9.3 |
% |
||||||||||
| Home mortgage |
|
44,389 |
3.7 |
% |
|
44,920 |
3.7 |
% |
|
45,452 |
3.8 |
% |
|
45,987 |
3.8 |
% |
|
49,155 |
4.0 |
% |
||||||||||
| Consumer |
|
668 |
0.1 |
% |
|
630 |
0.1 |
% |
|
616 |
0.1 |
% |
|
1,074 |
0.1 |
% |
|
1,049 |
0.1 |
% |
||||||||||
| Gross loans held-for-investment |
|
1,189,822 |
99.6 |
% |
|
1,199,054 |
99.6 |
% |
|
1,196,101 |
99.6 |
% |
|
1,196,058 |
99.6 |
% |
|
1,217,062 |
99.5 |
% |
||||||||||
| Deferred loan fees/costs, net |
|
4,617 |
0.4 |
% |
|
4,955 |
0.4 |
% |
|
5,129 |
0.4 |
% |
|
5,179 |
0.4 |
% |
|
5,805 |
0.5 |
% |
||||||||||
| Loans held-for-investment | $ |
1,194,439 |
100.0 |
% |
$ |
1,204,009 |
100.0 |
% |
$ |
1,201,230 |
100.0 |
% |
$ |
1,201,237 |
100.0 |
% |
$ |
1,222,867 |
100.0 |
% |
||||||||||
| Loans held-for-sale | $ |
198,167 |
$ |
218,258 |
$ |
219,355 |
$ |
215,083 |
$ |
243,753 |
||||||||||||||||||||
| Total loans receivable | $ |
1,392,606 |
$ |
1,422,267 |
$ |
1,420,585 |
$ |
1,416,320 |
$ |
1,466,620 |
||||||||||||||||||||
FIVE-QUARTER SBA LOAN PRODUCTIONS/SALES DATA (Unaudited) - Table 7 |
||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
||||||||||
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|||||||||||
| SBA loans held-for-sale at beginning of the quarter/year | $ |
218,258 |
|
$ |
219,355 |
|
$ |
215,083 |
|
$ |
243,753 |
|
$ |
230,431 |
|
|||||
| SBA loans originated/transferred from/to held-for-investment during the quarter/year |
|
14,589 |
|
|
27,022 |
|
|
16,260 |
|
|
18,273 |
|
|
16,890 |
|
|||||
| SBA loans sold during the quarter/year |
|
(28,164 |
) |
|
(21,749 |
) |
|
(9,245 |
) |
|
(42,437 |
) |
|
- |
|
|||||
| SBA loans principal paydown/payoff, net of advance |
|
(6,516 |
) |
|
(6,370 |
) |
|
(2,743 |
) |
|
(4,506 |
) |
|
(3,568 |
) |
|||||
| SBA loans held-for-sale at end of the quarter/year | $ |
198,167 |
|
$ |
218,258 |
|
$ |
219,355 |
|
$ |
215,083 |
|
$ |
243,753 |
|
|||||
| Gain on sale of SBA loans | $ |
1,489 |
|
$ |
838 |
|
$ |
419 |
|
$ |
1,952 |
|
$ |
- |
|
|||||
| Premium on sale (weighted average) |
|
8.4 |
% |
|
6.7 |
% |
|
6.8 |
% |
|
- |
|
|
- |
|
|||||
| SBA loan production | $ |
18,089 |
|
$ |
37,821 |
|
$ |
24,270 |
|
$ |
24,013 |
|
$ |
21,719 |
|
|||||
FIVE QUARTER SBA SERVICING ASSETS AND SERVICING FEES (Unaudited) - Table 8 |
||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
||||||||||
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|||||||||||
| SBA servicing assets @ beginning of the quarter/year | $ |
7,673 |
|
$ |
7,873 |
|
$ |
8,426 |
|
$ |
8,528 |
|
$ |
9,232 |
|
|||||
| Newly added SBA servicing assets from SBA loans sold |
|
555 |
|
|
430 |
|
|
182 |
|
|
806 |
|
|
- |
|
|||||
| Regular quarterly/annual servicing assets amortization |
|
(332 |
) |
|
(356 |
) |
|
(371 |
) |
|
(379 |
) |
|
(403 |
) |
|||||
| SBA servicing assets amortized from SBA loans paid off/charged off |
|
(336 |
) |
|
(274 |
) |
|
(364 |
) |
|
(529 |
) |
|
(301 |
) |
|||||
Subtotal before impairment |
|
7,560 |
|
|
7,673 |
|
|
7,873 |
|
|
8,426 |
|
|
8,528 |
|
|||||
| Reversal of valuation allowance on servicing assets |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||
| SBA servicing assets @ the end of the quarter/year | $ |
7,560 |
|
$ |
7,673 |
|
$ |
7,873 |
|
$ |
8,426 |
|
$ |
8,528 |
|
|||||
| FIVE-QUARTER DEPOSIT COMPONENTS (Unaudited) - Table 9 | ||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||
| March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
March 31, 2023 |
||||||||||||||||||||||||||
| Balance | % | Balance | % | Balance | % | Balance | % | Balance | % | |||||||||||||||||||||
| Noninterest-bearing demand | $ |
286,766 |
21.1 |
% |
$ |
305,923 |
21.1 |
% |
$ |
406,033 |
26.2 |
% |
$ |
426,333 |
28.0 |
% |
$ |
428,559 |
27.9 |
% |
||||||||||
| Interest-bearing demand |
|
6,709 |
0.5 |
% |
|
7,504 |
0.5 |
% |
|
6,395 |
0.4 |
% |
|
9,056 |
0.6 |
% |
|
10,883 |
0.7 |
% |
||||||||||
| NOW & MMDA |
|
229,642 |
16.9 |
% |
|
237,548 |
16.3 |
% |
|
227,283 |
14.7 |
% |
|
210,429 |
13.8 |
% |
|
211,793 |
13.8 |
% |
||||||||||
| Savings |
|
84,999 |
6.2 |
% |
|
88,689 |
6.1 |
% |
|
78,969 |
5.1 |
% |
|
62,324 |
4.1 |
% |
|
62,188 |
4.0 |
% |
||||||||||
| TCDs of $250K and under |
|
299,944 |
22.0 |
% |
|
315,920 |
21.7 |
% |
|
312,704 |
20.2 |
% |
|
298,520 |
19.6 |
% |
|
294,074 |
19.1 |
% |
||||||||||
| TCDs of $250K over |
|
339,482 |
25.0 |
% |
|
353,866 |
24.4 |
% |
|
373,345 |
24.1 |
% |
|
368,262 |
24.2 |
% |
|
367,167 |
23.9 |
% |
||||||||||
| Wholesale TCDs |
|
113,422 |
8.3 |
% |
|
144,135 |
9.9 |
% |
|
144,561 |
9.3 |
% |
|
147,487 |
9.7 |
% |
|
162,649 |
10.6 |
% |
||||||||||
| Total Deposits | $ |
1,360,964 |
100.0 |
% |
$ |
1,453,585 |
100.0 |
% |
$ |
1,549,290 |
100.0 |
% |
$ |
1,522,411 |
100.0 |
% |
$ |
1,537,313 |
100.0 |
% |
||||||||||
| Recap: | ||||||||||||||||||||||||||||||
| Noninterest-bearing demand | $ |
286,766 |
21.1 |
% |
$ |
305,923 |
21.0 |
% |
$ |
406,033 |
26.2 |
% |
$ |
426,333 |
28.0 |
% |
$ |
428,559 |
27.9 |
% |
||||||||||
| Interest-bearing demand |
|
6,709 |
0.5 |
% |
|
7,504 |
0.5 |
% |
|
6,395 |
0.4 |
% |
|
9,056 |
0.6 |
% |
|
10,883 |
0.7 |
% |
||||||||||
| NOW & MMDA |
|
229,642 |
16.9 |
% |
|
237,548 |
16.3 |
% |
|
227,283 |
14.7 |
% |
|
210,429 |
13.8 |
% |
|
211,793 |
13.8 |
% |
||||||||||
| Savings |
|
84,999 |
6.2 |
% |
|
88,689 |
6.1 |
% |
|
78,969 |
5.1 |
% |
|
62,324 |
4.1 |
% |
|
62,188 |
4.0 |
% |
||||||||||
| TCDs of $250K and under |
|
299,944 |
22.0 |
% |
|
315,920 |
21.7 |
% |
|
312,704 |
20.2 |
% |
|
298,520 |
19.6 |
% |
|
294,074 |
19.1 |
% |
||||||||||
| Core Deposits |
|
908,060 |
66.7 |
% |
|
955,584 |
65.7 |
% |
|
1,031,384 |
66.6 |
% |
|
1,006,662 |
66.1 |
% |
|
1,007,497 |
65.5 |
% |
||||||||||
| TCDs of $250K over |
|
339,482 |
24.9 |
% |
|
353,866 |
24.3 |
% |
|
373,345 |
24.1 |
% |
|
368,262 |
24.2 |
% |
|
367,167 |
23.9 |
% |
||||||||||
| Wholesale TCDs |
|
113,422 |
8.3 |
% |
|
144,135 |
9.9 |
% |
|
144,561 |
9.3 |
% |
|
147,487 |
9.7 |
% |
|
162,649 |
10.6 |
% |
||||||||||
| Noncore Deposits |
|
452,904 |
33.3 |
% |
|
498,001 |
34.3 |
% |
|
517,906 |
33.4 |
% |
|
515,749 |
33.9 |
% |
|
529,816 |
34.5 |
% |
||||||||||
| Total Deposits | $ |
1,360,964 |
100.0 |
% |
$ |
1,453,585 |
100.0 |
% |
$ |
1,549,290 |
100.0 |
% |
$ |
1,522,411 |
100.0 |
% |
$ |
1,537,313 |
100.0 |
% |
||||||||||
FIVE-QUARTER SELECTED LOAN AND ASSET QUALITY HIGHLIGHTS (Unaudited) - Table 10 |
||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
1st Qtr. |
|
4th Qtr. |
|
3rd Qtr. |
|
2nd Qtr. |
|
1st Qtr. |
||||||||||
|
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
||||||||||
| Allowance for Credit Losses | ||||||||||||||||||||
| Balance at beginning of period | $ |
15,291 |
|
$ |
15,284 |
|
$ |
15,626 |
|
$ |
15,627 |
|
$ |
15,525 |
|
|||||
| CECL transition provision |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
250 |
|
|||||
| Provision for credit losses |
|
743 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||
| Charge-offs |
|
(2 |
) |
|
(350 |
) |
|
(11 |
) |
|
(159 |
) |
||||||||
| Recoveries |
|
14 |
|
|
9 |
|
|
8 |
|
|
10 |
|
|
11 |
|
|||||
| Balance at the end of period | $ |
16,048 |
|
$ |
15,291 |
|
$ |
15,284 |
|
$ |
15,626 |
|
$ |
15,627 |
|
|||||
| Nonperforming Assets:¹ | ||||||||||||||||||||
| Over 90 days still accruing | $ |
1,605 |
|
$ |
399 |
|
$ |
2 |
|
$ |
39 |
|
$ |
- |
|
|||||
| Nonaccrual loans |
|
2,842 |
|
|
2,030 |
|
|
616 |
|
|
645 |
|
|
636 |
|
|||||
| Total nonperforming loans |
|
4,447 |
|
|
2,429 |
|
|
618 |
|
|
684 |
|
|
636 |
|
|||||
| Other real estate owned | $ |
- |
|
|
55 |
|
|
55 |
|
|
- |
|
|
- |
|
|||||
| Total nonperforming assets | $ |
4,447 |
|
$ |
2,484 |
|
$ |
673 |
|
$ |
684 |
|
$ |
636 |
|
|||||
| Classified Assets:¹ | ||||||||||||||||||||
| Substandard | $ |
11,912 |
|
$ |
11,063 |
|
$ |
10,105 |
|
$ |
10,491 |
|
$ |
7,673 |
|
|||||
| Doubtful |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||
| Loss | ||||||||||||||||||||
| Total classified loans | $ |
11,912 |
|
$ |
11,063 |
|
$ |
10,105 |
|
$ |
10,491 |
|
$ |
7,673 |
|
|||||
| Other real estate owned | $ |
- |
|
|
55 |
|
|
55 |
|
|
- |
|
|
- |
|
|||||
| Total classified assets | $ |
11,912 |
|
$ |
11,118 |
|
$ |
10,160 |
|
$ |
10,491 |
|
$ |
7,673 |
|
|||||
| Performing TDR loans:¹ | $ |
3,811 |
|
$ |
3,336 |
|
$ |
3,336 |
|
$ |
3,336 |
|
$ |
- |
|
|||||
| Delinquent Loans:¹ | ||||||||||||||||||||
| Loans 30-89 days past due | $ |
16,907 |
|
$ |
5,981 |
|
$ |
10,620 |
|
$ |
4,420 |
|
$ |
3,551 |
|
|||||
| 90 days or more past due and still accruing |
|
1,605 |
|
|
399 |
|
|
2 |
|
|
39 |
|
|
- |
|
|||||
| Nonaccrual |
|
2,842 |
|
|
2,030 |
|
|
616 |
|
|
645 |
|
|
636 |
|
|||||
| Total delinquent loans | $ |
21,354 |
|
$ |
8,410 |
|
$ |
11,238 |
|
$ |
5,104 |
|
$ |
4,187 |
|
|||||
| Asset Quality Ratios: | ||||||||||||||||||||
| Net (recoveries) charge-offs to average loans² |
|
0.00 |
% |
|
0.00 |
% |
|
0.10 |
% |
|
0.00 |
% |
|
0.04 |
% |
|||||
| Nonaccrual loans to loans held-for-investment |
|
0.24 |
% |
|
0.17 |
% |
|
0.05 |
% |
|
0.05 |
% |
|
0.05 |
% |
|||||
| Nonperforming loans to loans held-for-investment |
|
0.37 |
% |
|
0.20 |
% |
|
0.05 |
% |
|
0.06 |
% |
|
0.05 |
% |
|||||
| Nonperforming assets to total assets |
|
0.27 |
% |
|
0.14 |
% |
|
0.04 |
% |
|
0.04 |
% |
|
0.03 |
% |
|||||
| Classified loans to loans held-for-investment |
|
1.00 |
% |
|
0.92 |
% |
|
0.84 |
% |
|
0.87 |
% |
|
0.63 |
% |
|||||
| Classified loans to Tier 1 and ACL |
|
4.69 |
% |
|
4.45 |
% |
|
4.18 |
% |
|
4.44 |
% |
|
3.35 |
% |
|||||
| Classified assets to total assets |
|
0.71 |
% |
|
0.63 |
% |
|
0.55 |
% |
|
0.58 |
% |
|
0.42 |
% |
|||||
| Classified assets to Tier 1 and ACL |
|
4.69 |
% |
|
4.47 |
% |
|
4.20 |
% |
|
4.44 |
% |
|
3.35 |
% |
|||||
| ACL to loans held-for-investment |
|
1.34 |
% |
|
1.27 |
% |
|
1.27 |
% |
|
1.30 |
% |
|
1.28 |
% |
|||||
| ACL to nonaccrual loans |
|
564.67 |
% |
|
753.25 |
% |
|
2481.17 |
% |
|
2422.64 |
% |
|
2457.08 |
% |
|||||
| ACL to nonperforming loans |
|
360.87 |
% |
|
629.52 |
% |
|
2473.14 |
% |
|
2284.50 |
% |
|
2457.08 |
% |
|||||
| ACL to nonperforming assets |
|
360.87 |
% |
|
615.58 |
% |
|
2271.03 |
% |
|
2284.50 |
% |
|
2457.08 |
% |
|||||
| Texas ratio ³ |
|
1.75 |
% |
|
1.00 |
% |
|
0.28 |
% |
|
0.29 |
% |
|
0.28 |
% |
|||||
¹ |
Net of SBA guaranteed balance |
|
² |
Includes loans held-for-sale |
|
³ |
Nonperforming assets divided by tangible common equity and ACL |
|
FIVE-QUARTER CAPITAL RATIOS (Unaudited) - Table 11 |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
Well Capitalized |
|
Adequately Capitalized |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
||||||||||||
|
|
Regulatory |
|
BASEL III |
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Requirement |
|
Fully Phased In |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
||||||||||||
| Leverage ratio | ||||||||||||||||||||||||||
| Company | N/A |
|
N/A |
|
|
13.85 |
% |
|
12.98 |
% |
|
12.53 |
% |
|
12.23 |
% |
|
11.86 |
% |
|||||||
| Bank | 5.00 |
% |
4.00 |
% |
|
13.84 |
% |
|
12.96 |
% |
|
12.50 |
% |
|
12.20 |
% |
|
11.82 |
% |
|||||||
| Common equity tier 1 risk-based capital ratio | ||||||||||||||||||||||||||
| Company | N/A |
|
N/A |
|
|
18.67 |
% |
|
18.08 |
% |
|
17.61 |
% |
|
17.08 |
% |
|
16.15 |
% |
|||||||
| Bank | 6.50 |
% |
7.00 |
% |
|
18.65 |
% |
|
18.05 |
% |
|
17.57 |
% |
|
17.03 |
% |
|
16.10 |
% |
|||||||
| Tier 1 risk-based capital ratio | ||||||||||||||||||||||||||
| Company | N/A |
|
N/A |
|
|
18.67 |
% |
|
18.08 |
% |
|
17.61 |
% |
|
17.08 |
% |
|
16.15 |
% |
|||||||
| Bank | 8.00 |
% |
8.50 |
% |
|
18.65 |
% |
|
18.05 |
% |
|
17.57 |
% |
|
17.03 |
% |
|
16.10 |
% |
|||||||
| Total risk-based capital ratio | ||||||||||||||||||||||||||
| Company | N/A |
|
N/A |
|
|
19.92 |
% |
|
19.30 |
% |
|
18.83 |
% |
|
18.32 |
% |
|
17.37 |
% |
|||||||
| Bank | 10.00 |
% |
10.50 |
% |
|
19.91 |
% |
|
19.27 |
% |
|
18.79 |
% |
|
18.27 |
% |
|
17.31 |
% |
|||||||
| Tangible common equity/total assets |
|
14.25 |
% |
|
13.27 |
% |
|
12.19 |
% |
|
12.15 |
% |
|
11.75 |
% |
|||||||||||
| Tangible common equity per share | $ |
22.49 |
|
$ |
22.03 |
|
$ |
21.39 |
|
$ |
20.85 |
|
$ |
20.18 |
|
|||||||||||
| FIVE-QUARTER MARGIN ANALYSIS (Unaudited) -Table 12 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
| March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
| Avg Balance | Interest | Yield | Avg Balance | Interest | Yield | Avg Balance | Interest | Yield | Avg Balance | Interest | Yield | Avg Balance | Interest | Yield | ||||||||||||||||||||||||||||||||||||
| Number of Days in the Period | ||||||||||||||||||||||||||||||||||||||||||||||||||
| INTEREST-EARNING ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans Receivable¹ | $ |
1,415,924 |
|
$ |
24,906 |
7.07 |
% |
$ |
1,410,971 |
|
$ |
24,926 |
7.01 |
% |
$ |
1,417,148 |
|
$ |
24,734 |
6.92 |
% |
$ |
1,444,608 |
|
$ |
24,661 |
6.85 |
% |
$ |
1,502,078 |
|
$ |
24,379 |
6.58 |
% |
|||||||||||||||
| Investment securities ² |
|
59,554 |
|
|
575 |
3.88 |
% |
|
60,094 |
|
|
563 |
3.72 |
% |
|
64,587 |
|
|
577 |
3.54 |
% |
|
67,958 |
|
|
595 |
3.51 |
% |
|
70,146 |
|
|
577 |
3.34 |
% |
|||||||||||||||
| Interest-earning deposits at the FRB and other banks |
|
207,155 |
|
|
2,817 |
5.47 |
% |
|
288,769 |
|
|
3,973 |
5.46 |
% |
|
293,081 |
|
|
3,994 |
5.41 |
% |
|
258,236 |
|
|
3,296 |
5.12 |
% |
|
190,692 |
|
|
2,178 |
4.63 |
% |
|||||||||||||||
| Other earning assets |
|
11,011 |
|
|
214 |
7.82 |
% |
|
11,011 |
|
|
212 |
7.64 |
% |
|
11,011 |
|
|
196 |
7.06 |
% |
|
10,825 |
|
|
163 |
6.04 |
% |
|
10,121 |
|
|
164 |
6.57 |
% |
|||||||||||||||
| Total interest-earning assets ² |
|
1,693,644 |
|
|
28,512 |
6.77 |
% |
|
1,770,845 |
|
|
29,674 |
6.65 |
% |
|
1,785,827 |
|
|
29,501 |
6.55 |
% |
|
1,781,627 |
|
|
28,715 |
6.46 |
% |
|
1,773,037 |
|
|
27,298 |
6.24 |
% |
|||||||||||||||
| NONINTEREST-EARNING ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and due from banks |
|
12,172 |
|
|
12,567 |
|
|
13,045 |
|
|
12,792 |
|
|
14,262 |
|
|||||||||||||||||||||||||||||||||||
| Other noninterest-earning assets |
|
31,967 |
|
|
32,985 |
|
|
33,331 |
|
|
34,060 |
|
|
36,643 |
|
|||||||||||||||||||||||||||||||||||
| Total noninterest-earning assets |
|
44,139 |
|
|
45,552 |
|
|
46,376 |
|
|
46,852 |
|
|
50,905 |
|
|||||||||||||||||||||||||||||||||||
| Less: Allowance for credit losses |
|
(15,322 |
) |
|
(15,291 |
) |
|
(15,622 |
) |
|
(15,627 |
) |
|
(15,552 |
) |
|||||||||||||||||||||||||||||||||||
| TOTAL ASSETS | $ |
1,722,461 |
|
$ |
1,801,106 |
|
$ |
1,816,581 |
|
$ |
1,812,852 |
|
$ |
1,808,390 |
|
|||||||||||||||||||||||||||||||||||
| INTEREST-BEARING DEPOSITS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing demand | $ |
12,680 |
|
$ |
6 |
0.19 |
% |
$ |
12,657 |
|
$ |
7 |
0.22 |
% |
$ |
12,347 |
|
$ |
6 |
0.19 |
% |
$ |
14,522 |
|
$ |
7 |
0.19 |
% |
$ |
18,021 |
|
$ |
9 |
0.20 |
% |
|||||||||||||||
| Money market |
|
229,441 |
|
|
2,285 |
4.01 |
% |
|
222,289 |
|
|
2,158 |
3.85 |
% |
|
211,152 |
|
|
1,907 |
3.58 |
% |
|
192,872 |
|
|
1,414 |
2.94 |
% |
|
231,865 |
|
|
1,469 |
2.57 |
% |
|||||||||||||||
| Savings |
|
84,854 |
|
|
724 |
3.43 |
% |
|
82,403 |
|
|
664 |
3.20 |
% |
|
70,579 |
|
|
494 |
2.78 |
% |
|
63,786 |
|
|
324 |
2.04 |
% |
|
55,576 |
|
|
164 |
1.20 |
% |
|||||||||||||||
| Time deposits |
|
801,122 |
|
|
9,523 |
4.78 |
% |
|
824,900 |
|
|
9,515 |
4.58 |
% |
|
820,335 |
|
|
8,916 |
4.31 |
% |
|
839,198 |
|
|
8,068 |
3.86 |
% |
|
797,072 |
|
|
6,410 |
3.26 |
% |
|||||||||||||||
| Total interest-bearing deposits |
|
1,128,097 |
|
|
12,538 |
4.47 |
% |
|
1,142,249 |
|
|
12,344 |
4.29 |
% |
|
1,114,413 |
|
|
11,323 |
4.03 |
% |
|
1,110,378 |
|
|
9,813 |
3.54 |
% |
|
1,102,534 |
|
|
8,052 |
2.96 |
% |
|||||||||||||||
| Borrowings |
|
50,000 |
|
|
117 |
0.94 |
% |
|
50,001 |
|
|
118 |
0.94 |
% |
|
50,001 |
|
|
119 |
0.94 |
% |
|
50,000 |
|
|
117 |
0.94 |
% |
|
50,000 |
|
|
116 |
0.94 |
% |
|||||||||||||||
| Total interest-bearing liabilities |
|
1,178,097 |
|
|
12,655 |
4.32 |
% |
|
1,192,250 |
|
|
12,462 |
4.15 |
% |
|
1,164,414 |
|
|
11,442 |
3.90 |
% |
|
1,160,378 |
|
|
9,930 |
3.43 |
% |
|
1,152,534 |
|
|
8,168 |
2.87 |
% |
|||||||||||||||
| Noninterest-bearing deposits |
|
284,867 |
|
|
350,656 |
|
|
397,791 |
|
|
411,432 |
|
|
425,190 |
|
|||||||||||||||||||||||||||||||||||
| Other liabilities |
|
21,112 |
|
|
25,602 |
|
|
27,519 |
|
|
20,934 |
|
|
16,947 |
|
|||||||||||||||||||||||||||||||||||
| Stockholders' equity |
|
238,385 |
|
|
232,598 |
|
|
226,857 |
|
|
220,108 |
|
|
213,719 |
|
|||||||||||||||||||||||||||||||||||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ |
1,722,461 |
|
$ |
1,801,106 |
|
$ |
1,816,581 |
|
$ |
1,812,852 |
|
$ |
1,808,390 |
|
|||||||||||||||||||||||||||||||||||
| Net interest income² | $ |
15,857 |
$ |
17,212 |
$ |
18,059 |
$ |
18,785 |
$ |
19,130 |
||||||||||||||||||||||||||||||||||||||||
| Net interest spread | 2.45 |
% |
2.50 |
% |
2.65 |
% |
3.03 |
% |
3.37 |
% |
||||||||||||||||||||||||||||||||||||||||
| Effect of noninterest-bearing sources | 1.32 |
% |
1.36 |
% |
1.36 |
% |
1.20 |
% |
1.01 |
% |
||||||||||||||||||||||||||||||||||||||||
| Net interest margin² | 3.77 |
% |
3.86 |
% |
4.01 |
% |
4.23 |
% |
4.38 |
% |
||||||||||||||||||||||||||||||||||||||||
| Cost of deposits | $ |
1,412,964 |
|
$ |
12,538 |
3.57 |
% |
$ |
1,492,905 |
|
$ |
12,344 |
3.28 |
% |
$ |
1,512,204 |
|
$ |
11,323 |
2.97 |
% |
$ |
1,521,810 |
|
$ |
9,813 |
2.59 |
% |
$ |
1,527,724 |
|
$ |
8,052 |
2.14 |
% |
|||||||||||||||
| Cost of funds | $ |
1,462,964 |
|
$ |
12,655 |
3.48 |
% |
$ |
1,542,906 |
|
$ |
12,462 |
3.20 |
% |
$ |
1,562,205 |
|
$ |
11,442 |
2.91 |
% |
$ |
1,571,810 |
|
$ |
9,930 |
2.53 |
% |
$ |
1,577,724 |
|
$ |
8,168 |
2.10 |
% |
|||||||||||||||
FIVE-QUARTER COMPONENTS OF YIELD ON LOANS (Unaudited) - Table 13 |
|||||||||||||||||||||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
|
Three Months Ended |
||||||||||||||||||||||||||||||||||
|
March 31,
|
December 31,
|
September 30,
|
June 30,
|
March 31,
|
||||||||||||||||||||||||||||||
|
Amount |
Yield |
Amount |
Yield |
Amount |
Yield |
Amount |
Yield |
Amount |
Yield |
|||||||||||||||||||||||||
| Contractual yield | $ |
24,138 |
|
6.86 |
% |
$ |
24,235 |
|
6.81 |
% |
$ |
23,932 |
|
6.70 |
% |
$ |
23,767 |
|
6.60 |
% |
$ |
23,643 |
|
6.38 |
% |
||||||||||
| SBA discount accretion |
|
926 |
|
0.26 |
% |
|
845 |
|
0.24 |
% |
|
921 |
|
0.25 |
% |
|
1,124 |
|
0.31 |
% |
|
937 |
|
0.25 |
% |
||||||||||
| Prepayment penalties and late fees |
|
67 |
|
0.01 |
% |
|
40 |
|
0.01 |
% |
|
18 |
|
0.01 |
% |
|
60 |
|
0.02 |
% |
|
30 |
|
0.01 |
% |
||||||||||
| Amortization of net deferred costs |
|
(225 |
) |
-0.06 |
% |
|
(194 |
) |
-0.05 |
% |
|
(137 |
) |
-0.04 |
% |
|
(290 |
) |
-0.08 |
% |
|
(231 |
) |
-0.06 |
% |
||||||||||
| As reported yield on loans | $ |
24,906 |
|
7.07 |
% |
$ |
24,926 |
|
7.01 |
% |
$ |
24,734 |
|
6.92 |
% |
$ |
24,661 |
|
6.85 |
% |
$ |
24,379 |
|
6.58 |
% |
||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240426093642/en/
Contacts
Richard Koh, EVP & CFO
(323) 988-3037
RichardK@cbb-bank.com
