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8-K - FORM 8-K - HOME BANCORP, INC.d524716d8k.htm

Exhibit 99.1

For further information contact:

John W. Bordelon, President and CEO

(337) 237-1960

 

Release Date:    April 23, 2013
   For Immediate Release

HOME BANCORP ANNOUNCES 2013 FIRST QUARTER RESULTS

Lafayette, Louisiana – Home Bancorp, Inc. (Nasdaq: “HBCP”) (the “Company”), the parent company for Home Bank (www.home24bank.com), a Federally chartered savings bank headquartered in Lafayette, Louisiana (the “Bank”), announced net income of $1.9 million for the first quarter of 2013, a decrease of $462,000, or 20%, compared to the fourth quarter of 2012 and a decrease of $199,000, or 10%, compared to the first quarter of 2012. Diluted earnings per share were $0.27 for the first quarter of 2013, a decrease of $0.06, or 18%, compared to the fourth quarter of 2012 and a decrease of $0.02, or 7%, compared to the first quarter of 2012.

“We are beginning to see our loan pipeline grow modestly,” stated John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. “We continue to manage our company conservatively through this challenging time for our industry. We will maintain our credit standards and manage interest rate risk appropriately for the long-term benefit of our Company and shareholders.”

Loans and Credit Quality

Loans totaled $678.6 million at March 31, 2013, an increase of $5.5 million, or 1%, from December 31, 2012, and a decrease of $72,000, from March 31, 2012. During the first quarter, increases in the one-to four-family first mortgage (up $8.5 million) and commercial and industrial (up $2.1 million) loan portfolios were largely offset by maturities and paydowns in most other segments of the loan portfolio. The increase in the one-to-four-family first mortgage portfolio resulted primarily from the selective addition of 15-year term loans to the portfolio.

The following table sets forth the composition of the Company’s loan portfolio (including loans covered by loss sharing agreements) as of the dates indicated.

 

(dollars in thousands)

   March 31,
2013
     December 31,
2012
     Increase/(Decrease)  
         Amount     Percent  

Real estate loans:

          

One- to four-family first mortgage

   $ 186,275       $ 177,816       $ 8,459        5

Home equity loans and lines

     38,543         40,425         (1,882     (5

Commercial real estate

     251,656         252,805         (1,149     —     

Construction and land

     74,229         75,529         (1,300     (2

Multi-family residential

     18,500         19,659         (1,159     (6
  

 

 

    

 

 

    

 

 

   

 

 

 

Total real estate loans

     569,203         566,234         2,969        1   
  

 

 

    

 

 

    

 

 

   

 

 

 

Other loans:

          

Commercial and industrial

     74,346         72,253         2,093        3   

Consumer

     35,029         34,641         388        1   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total other loans

     109,375         106,894         2,481        2   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total loans

   $ 678,578       $ 673,128       $ 5,450        1
  

 

 

    

 

 

    

 

 

   

 

 

 


Nonperforming assets (“NPAs”), which include $11.6 million in assets covered under loss sharing agreements with the FDIC (“Covered Assets”) and $12.3 million acquired from GS Financial Corp. (“GSFC”), totaled $30.5 million at March 31, 2013, an increase of $2.1 million compared to December 31, 2012 and a decrease of $3.6 million compared to March 31, 2012. The ratio of total NPAs to total assets was 3.12% at March 31, 2013, compared to 2.95% at December 31, 2012 and 3.48% at March 31, 2012. Excluding acquired assets, the ratio of NPAs to total assets was 0.80% at March 31, 2013, compared to 0.62% at December 31, 2012 and 1.16% at March 31, 2012.

The Company recorded net loan charge-offs of $165,000 during the first quarter of 2013, compared to net loan charge-offs of $70,000 in the fourth quarter of 2012 and $3,000 in the first quarter of 2012. The increase in net charge-offs for the first quarter of 2013 resulted primarily from the full charge off of one commercial and industrial loan relationship.

The Company’s provision for loan losses for the first quarter of 2013 was $520,000, compared to $483,000 for the fourth quarter of 2012 and $712,000 for the first quarter of 2012. The provision in the first quarter of 2013 related primarily to the commercial and industrial loan charge-offs noted above and a $300,000 provision on a $1.3 million medical equipment loan.

The ratio of allowance for loan losses to total loans was 0.84% at March 31, 2013, compared to 0.79% and 0.86% at December 31, 2012 and March 31, 2012, respectively. Excluding acquired loans, the ratio of the allowance for loan losses to total loans was 1.05% at March 31, 2013, compared to 1.01% at December 31, 2012 and 1.22% at March 31, 2012.

Investment Securities Portfolio

The Company’s investment securities portfolio totaled $159.7 million at March 31, 2013, an increase of $807,000, or 1%, from December 31, 2012, and a decrease of $4.3 million, or 3%, from March 31, 2012. At March 31, 2013, the Company had a net unrealized gain position on its investment securities portfolio of $4.6 million, compared to net unrealized gains of $4.9 million and $4.0 million at December 31, 2012 and March 31, 2012, respectively. The investment securities portfolio had a modified duration of 3.7 years at March 31, 2013 and December 31, 2012, compared to 3.2 years at March 31, 2012.

Deposits

During the first quarter of 2013, core deposits (i.e., checking, savings and money market accounts) increased $24.9 million, or 5%, from December 31, 2012, and increased $84.7 million, or 19%, from March 31, 2012. Total deposits were $783.3 million at March 31, 2013, an increase of $11.9 million, or 2%, from December 31, 2012, and an increase of $47.2 million, or 6%, from March 31, 2012.

The following table sets forth the composition of the Company’s deposits at the dates indicated.

 

(dollars in thousands)

   March 31,
2013
     December 31,
2012
     Increase / (Decrease)  
         Amount     Percent  

Demand deposit

   $ 174,520       $ 152,462       $ 22,058        14

Savings

     53,677         51,515         2,162        4   

Money market

     196,009         191,191         4,818        3   

NOW

     119,111         123,294         (4,183     (3

Certificates of deposit

     240,002         252,967         (12,965     (5
  

 

 

    

 

 

    

 

 

   

 

 

 

Total deposits

   $ 783,319       $ 771,429       $ 11,890        2
  

 

 

    

 

 

    

 

 

   

 

 

 


Share Repurchases

The Company purchased 36,160 shares of its common stock during the first quarter of 2013 at an average price per share of $18.55 under the share repurchase plan announced in July 2012. The Company may repurchase up to 383,598 shares, or approximately 5%, of the Company’s outstanding common stock under the July 2012 plan. As of April 17, 2013, the Company has purchased 286,022 shares under the plan at an average price per share of $17.56; hence, an additional 97,576 shares remain eligible for purchase under the plan. The tangible book value per share of the Company’s common stock was $19.03 at March 31, 2013.

Net Interest Income

Net interest income for the first quarter of 2013 totaled $9.9 million, a decrease of $521,000, or 5%, compared to the fourth quarter of 2012, and a decrease of $102,000, or 1%, compared to the first quarter of 2012. The decline in net interest income in the first quarter of 2013 compared to the first and fourth quarters of 2012 was due largely to a decline in loan interest income as a result of lower volumes of new loan originations and lower average yields earned on loans, reflecting the continuing low interest rate environment as well as the effects of competition for loans in our marketplace.

The Company’s net interest margin was 4.63% for the first quarter of 2013, 12 basis points lower than the fourth quarter of 2012 and two basis points lower than the first quarter of 2012. The decrease in the net interest margin related primarily to lower loan yields.

The following table sets forth the Company’s average volume and rate of its interest-earning assets and interest-bearing liabilities for the periods indicated. Taxable equivalent yields are calculated using a marginal tax rate of 35%.

 

     For the Three Months Ended  
     March 31, 2013     December 31, 2012     March 31, 2012  

(dollars in thousands)

   Average
Balance
     Average
Yield/Rate
    Average
Balance
     Average
Yield/Rate
    Average
Balance
     Average
Yield/Rate
 

Interest-earning assets:

               

Loans receivable

   $ 675,435         5.98   $ 673,428         6.28   $ 672,713         6.13

Investment securities (TE)

     153,958         2.15        149,294         2.09        155,476         2.32   

Other interest-earning assets

     28,753         0.44        41,057         0.43        25,160         0.55   
  

 

 

      

 

 

      

 

 

    

Total interest-earning assets

   $ 858,146         5.11      $ 863,779         5.28      $ 853,349         5.27   
  

 

 

      

 

 

      

 

 

    

Interest-bearing liabilities:

               

Deposits:

               

Savings, checking, and money market

   $ 369,594         0.30      $ 361,862         0.33      $ 316,004         0.45   

Certificates of deposit

     245,421         1.01        257,750         1.04        282,476         1.11   
  

 

 

      

 

 

      

 

 

    

Total interest-bearing deposits

     615,015         0.58        619,612         0.63        598,480         0.76   

FHLB advances

     41,243         1.39        40,796         1.58        101,473         0.71   
  

 

 

      

 

 

      

 

 

    

Total interest-bearing liabilities

   $ 656,258         0.63      $ 660,408         0.68      $ 699,953         0.75   
  

 

 

      

 

 

      

 

 

    

Net interest spread (TE)

        4.48        4.59        4.52

Net interest margin (TE)

        4.63        4.75        4.65

Noninterest Income

Noninterest income for the first quarter of 2013 totaled $1.8 million, an increase of $15,000, or 1%, compared to the fourth quarter of 2012 and an increase of $80,000, or 5%, compared to the first quarter of 2012. The increase in noninterest income in the first quarter of 2013 compared to the fourth


quarter of 2012 resulted primarily from increases in service fees and charges (up $51,000) and bank card fees (up $15,000), which were partially offset by decreases in gains on the sale of mortgage loans (down $19,000), income from bank-owned life insurance (down $9,000) and other income (down $16,000).

The increase in noninterest income in the first quarter of 2013 compared to the first quarter of 2012 resulted primarily from higher gains on sale of mortgage loans (up $222,000), which was partially offset by decreases in discount accretion on the FDIC loss sharing receivable (down $65,000), bank card fees (down $54,000) and service fees and charges (down $24,000).

Noninterest Expense

Noninterest expense for the first quarter of 2013 totaled $8.3 million, an increase of $83,000, or 1%, compared to the fourth quarter of 2012 and an increase of $487,000, or 6%, compared to the first quarter of 2012. The increase in noninterest expense in the first quarter of 2013 compared to the fourth quarter of 2012 resulted primarily from higher accrual of Louisiana shares tax (up $317,000), which was partially offset by lower data processing and communication (down $126,000) and foreclosed asset expenses (down $115,000).

The increase in noninterest expense in the first quarter of 2013 compared to the first quarter of 2012 resulted primarily from higher compensation and benefits (up $401,000), marketing and advertising (up $88,000) and Louisiana shares tax (up $98,000) expenses, which were partially offset by lower foreclosed asset expenses (down $90,000).

This news release contains financial information determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). The Company’s management uses this non-GAAP financial information in its analysis of the Company’s performance. In this news release, information is included which excludes loans acquired from the FDIC and GSFC. Management believes the presentation of this non-GAAP financial information provides useful information that is essential to a proper understanding of the Company’s financial position and core operating results. This non-GAAP financial information should not be viewed as a substitute for financial information determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial information presented by other companies.

This news release contains certain forward-looking statements. 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.”

Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors - many of which are beyond our control - could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Home Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2012, describes some of these factors, including risk elements in the loan portfolio, the level of the allowance for losses on loans, risks of our growth strategy, geographic concentration of our business, dependence on our management team, risks of market rates of interest and of regulation on our business and risks of competition. Forward-looking statements speak only as of the date they are made. We do not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made or to reflect the occurrence of unanticipated events.


HOME BANCORP, INC. AND SUBSIDIARY

CONDENSED STATEMENTS OF FINANCIAL CONDITION

 

     March 31,
2013
    March 31,
2012
    %
Change
    December 31,
2012
 

Assets

        

Cash and cash equivalents

   $ 48,271,579      $ 33,800,736        43   $ 39,539,366   

Interest-bearing deposits in banks

     3,529,000        4,754,000        (26     3,529,000   

Investment securities available for sale, at fair value

     158,264,273        161,000,461        (2     157,255,828   

Investment securities held to maturity

     1,463,543        3,064,866        (52     1,665,184   

Mortgage loans held for sale

     4,373,926        1,794,119        144        5,627,104   

Loans covered by loss sharing agreements

     41,533,637        56,111,387        (26     45,764,397   

Noncovered loans, net of unearned income

     637,044,534        622,539,181        2        627,363,937   
  

 

 

   

 

 

     

 

 

 

Total loans

     678,578,171        678,650,568        —          673,128,334   

Allowance for loan losses

     (5,674,179     (5,813,095     (2     (5,319,235
  

 

 

   

 

 

     

 

 

 

Total loans, net of allowance for loan losses

     672,903,992        672,837,473        —          667,809,099   
  

 

 

   

 

 

     

 

 

 

FDIC loss sharing receivable

     15,658,092        24,399,699        (36     15,545,893   

Office properties and equipment, net

     30,540,350        30,724,675        (1     30,777,184   

Cash surrender value of bank-owned life insurance

     17,405,985        16,902,453        3        17,286,434   

Accrued interest receivable and other assets

     24,614,631        30,275,634        (19     23,891,172   
  

 

 

   

 

 

     

 

 

 

Total Assets

   $ 977,025,371      $ 979,554,116        —        $ 962,926,264   
  

 

 

   

 

 

     

 

 

 

Liabilities

        

Deposits

   $ 783,318,582      $ 736,157,230        6   $ 771,429,335   

Federal Home Loan Bank advances

     49,346,176        100,848,030        (51     46,256,805   

Accrued interest payable and other liabilities

     1,242,657        4,827,764        (74     3,666,264   
  

 

 

   

 

 

     

 

 

 

Total Liabilities

     833,907,415        841,833,024        (1     821,352,404   
  

 

 

   

 

 

     

 

 

 

Shareholders’ Equity

        

Common stock

     89,534        89,404        —   %        89,506   

Additional paid-in capital

     91,458,193        90,230,748        1        90,986,820   

Treasury stock

     (22,390,786     (15,965,319     40        (21,719,954

Common stock acquired by benefit plans

     (7,358,139     (8,531,519     (14     (7,455,669

Retained earnings

     78,297,156        69,305,807        13        76,435,222   

Accumulated other comprehensive income

     3,021,998        2,591,971        17        3,237,935   
  

 

 

   

 

 

     

 

 

 

Total Shareholders’ Equity

     143,117,956        137,721,092        4        141,573,860   
  

 

 

   

 

 

     

 

 

 

Total Liabilities and Shareholders’ Equity

   $ 977,025,371      $ 979,554,116        —        $ 962,926,264   
  

 

 

   

 

 

     

 

 

 


HOME BANCORP, INC. AND SUBSIDIARY

CONDENSED STATEMENTS OF INCOME

 

     For The Three Months Ended            For The Three        
     March 31,      %     Months Ended     %  
     2013      2012      Change     December 31, 2012     Change  

Interest Income

            

Loans, including fees

   $ 10,072,750       $ 10,371,357         (3 )%    $ 10,734,365        (6 )% 

Investment securities

     771,050         859,482         (10     728,597        6   

Other investments and deposits

     31,306         34,398         (9     43,951        (29
  

 

 

    

 

 

      

 

 

   

Total interest income

     10,875,106         11,265,237         (3     11,506,913        (5
  

 

 

    

 

 

      

 

 

   

Interest Expense

            

Deposits

     881,014         1,131,848         (22 )%      974,361        (10 )% 

Federal Home Loan Bank advances

     143,679         180,836         (21     160,787        (11
  

 

 

    

 

 

      

 

 

   

Total interest expense

     1,024,693         1,312,684         (22     1,135,148        (10
  

 

 

    

 

 

      

 

 

   

Net interest income

     9,850,413         9,952,553         (1     10,371,765        (5

Provision for loan losses

     520,392         711,900         (27     483,251        8   
  

 

 

    

 

 

      

 

 

   

Net interest income after provision for loan losses

     9,330,021         9,240,653         1        9,888,514        (6
  

 

 

    

 

 

      

 

 

   

Noninterest Income

            

Service fees and charges

     546,346         569,941         (4 )%      495,372        10

Bank card fees

     414,392         468,284         (12     399,282        4   

Gain on sale of loans, net

     548,419         326,171         68        567,804        (3

Income from bank-owned life insurance

     119,551         131,279         (9     128,487        (7

Gain on the sale of securities, net

     —            168         (100     —           —     

Discount accretion of FDIC loss sharing receivable

     112,199         177,510         (37     119,087        (6

Other income

     39,371         26,562         48        55,418        (29
  

 

 

    

 

 

      

 

 

   

Total noninterest income

     1,780,278         1,699,915         5        1,765,450        1   
  

 

 

    

 

 

      

 

 

   

Noninterest Expense

            

Compensation and benefits

     5,096,218         4,695,709         9     5,118,250        —  

Occupancy

     708,786         694,941         2        689,774        3   

Marketing and advertising

     239,195         151,474         58        205,051        17   

Data processing and communication

     641,515         672,341         (5     767,345        (16

Professional fees

     212,746         232,253         (8     189,175        12   

Forms, printing and supplies

     106,773         126,266         (15     100,006        7   

Franchise and shares tax

     273,620         175,651         56        (43,458     730   

Regulatory fees

     223,249         198,158         13        224,673        (1

Foreclosed assets, net

     177,943         267,998         (34     292,584        (39

Other expenses

     616,271         594,031         4        669,918        (8
  

 

 

    

 

 

      

 

 

   

Total noninterest expense

     8,296,316         7,808,822         6        8,213,318        1   
  

 

 

    

 

 

      

 

 

   

Income before income tax expense

     2,813,983         3,131,746         (10     3,440,646        (18

Income tax expense

     952,049         1,071,289         (11     1,116,236        (15
  

 

 

    

 

 

      

 

 

   

Net income

   $ 1,861,934       $ 2,060,457         (10   $ 2,324,410        (20
  

 

 

    

 

 

      

 

 

   

Earnings per share - basic

   $ 0.28       $ 0.30         (7 )%    $ 0.34        (18 )% 
  

 

 

    

 

 

      

 

 

   

Earnings per share - diluted

   $ 0.27       $ 0.29         (7   $ 0.33        (18
  

 

 

    

 

 

      

 

 

   


HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY FINANCIAL INFORMATION

 

     For The Three Months Ended           For The Three        
     March 31,     %     Months Ended     %  
     2013     2012     Change     December 31, 2012     Change  
(dollars in thousands except per share data)                               

EARNINGS DATA

          

Total interest income

   $ 10,875      $ 11,265        (3 )%    $ 11,507        (5 )% 

Total interest expense

     1,025        1,313        (22     1,135        (10
  

 

 

   

 

 

     

 

 

   

Net interest income

     9,850        9,952        (1     10,372        (5
  

 

 

   

 

 

     

 

 

   

Provision for loan losses

     520        712        (27     483        8   

Total noninterest income

     1,780        1,700        5        1,765        1   

Total noninterest expense

     8,296        7,809        6        8,213        1   

Income tax expense

     952        1,071        (11     1,116        (15
  

 

 

   

 

 

     

 

 

   

Net income

   $ 1,862      $ 2,060        (10   $ 2,325        (20
  

 

 

   

 

 

     

 

 

   

AVERAGE BALANCE SHEET DATA

          

Total assets

   $ 961,542      $ 965,683        —     $ 969,182        (1 )% 

Total interest-earning assets

     858,146        853,349        1        863,779        (1

Total loans

     675,435        672,713        —          673,428        —     

Total interest-bearing deposits

     615,015        598,480        3        619,612        (1

Total interest-bearing liabilities

     656,258        699,953        (6     660,408        (1

Total deposits

     775,937        724,752        7        783,522        (1

Total shareholders’ equity

     143,113        134,899        6        141,457        1   

SELECTED RATIOS (1)

          

Return on average assets

     0.77     0.85     (9 )%      0.96     (20 )% 

Return on average equity

     5.20        6.11        (15     6.57        (21

Efficiency ratio (2)

     71.33        67.01        6        67.67        5   

Average equity to average assets

     14.88        13.97        7        14.60        2   

Tier 1 leverage capital ratio (3)

     13.70        12.59        9        13.67        —     

Total risk-based capital ratio (3)

     22.11        20.83        6        21.83        1   

Net interest margin (4)

     4.63        4.65        —          4.75        (3

PER SHARE DATA

          

Basic earnings per share

   $ 0.28      $ 0.30        (7 )%    $ 0.34        (18 )% 

Diluted earnings per share

     0.27        0.29        (7     0.33        (18

Book value at period end

     19.33        17.74        9        19.03        2   

Tangible book value at period end

     19.03        17.42        9        18.73        2   

PER SHARE DATA

          

Shares outstanding at period end

     7,405,767        7,762,204        (5 )%      7,439,127        —  

Weighted average shares outstanding

          

Basic

     6,668,780        6,952,952        (4 )%      6,770,286        (1 )% 

Diluted

     7,019,572        7,196,444        (2     7,086,561        (1

 

(1) 

With the exception of end-of-period ratios, all ratios are based on average monthly balances during the respective periods.

(2) 

The efficiency ratio represents noninterest expense as a percentage of total revenues. Total revenues is the sum of net interest income and noninterest income.

(3) 

Capital ratios are end of period ratios for the Bank only.

(4) 

Net interest margin represents net interest income as a percentage of average interest-earning assets. Taxable equivalent yields are calculated using a marginal tax rate of 35%.


HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY CREDIT QUALITY INFORMATION

 

    March 31, 2013     December 31, 2012     March 31, 2012  
    Covered     Noncovered     Total     Covered     Noncovered     Total     Covered     Noncovered     Total  
(dollars in thousands)                                                      

CREDIT QUALITY (1) (2)

                 

Nonaccrual loans

  $ 8,105      $ 15,225      $ 23,330      $ 9,579      $ 12,368      $ 21,947      $ 10,456      $ 15,759      $ 26,215   

Accruing loans past due 90 days and over

    —          —          —          —          —          —          —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total nonperforming loans

    8,105        15,225        23,330        9,579        12,368        21,947        10,456        15,759        26,215   

Other real estate owned

    3,517        3,612        7,129        2,683        3,771        6,454        5,168        2,675        7,843   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total nonperforming assets

    11,622        18,837        30,459        12,262        16,139        28,401        15,624        18,434        34,058   

Performing troubled debt restructurings

    297        482        779        306        808        1,114        25        543        568   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total nonperforming assets and troubled debt restructurings

  $ 11,919      $ 19,319      $ 31,238      $ 12,568      $ 16,947      $ 29,515      $ 15,649      $ 18,977      $ 34,626   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Nonperforming assets to total assets

        3.12         2.95         3.48

Nonperforming loans to total assets

        2.39            2.28            2.68   

Nonperforming loans to total loans

        3.44            3.26            3.86   

Allowance for loan losses to nonperforming assets

        18.63            18.73            17.07   

Allowance for loan losses to nonperforming loans

        24.32            24.24            22.18   

Allowance for loan losses to total loans

        0.84            0.79            0.86   

Year-to-date loan charge-offs

      $ 189          $ 2,325          $ 15   

Year-to-date loan recoveries

        24            129            12   
     

 

 

       

 

 

       

 

 

 

Year-to-date net loan charge-offs

      $ 165          $ 2,196          $ 3   
     

 

 

       

 

 

       

 

 

 

Annualized YTD net loan charge-offs to total loans

        0.10         0.33         —  

 

(1) 

Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due. Nonperforming assets consist of nonperforming loans and repossessed assets. It is our policy to cease accruing interest on loans 90 days or more past due. Repossessed assets consist of assets acquired through foreclosure or acceptance of title in-lieu of foreclosure.

(2) 

Asset quality information includes assets covered under FDIC loss sharing agreements. Such assets covered by FDIC loss sharing agreements are referred to as “Covered” assets. All other assets are referred to as “Noncovered”.