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8-K - 8-K - CIVISTA BANCSHARES, INC.d532485d8k.htm

Exhibit 99.1

 

LOGO

Civista Bancshares, Inc. Announces 2017 Earnings

Sandusky, Ohio, January 26, 2018 /PRNewswire/– Civista Bancshares, Inc. (NASDAQ:CIVB) (“Civista”) reported net income available to common shareholders of $3.7 million, or $0.32 per diluted share, for the fourth quarter of 2017, compared with $3.3 million, or $0.33 per diluted share, for the prior year period. For the year ended December 31, 2017, Civista reported net income available to common shareholders of $14.6 million or $1.28 per diluted share, compared to $15.7 million, or $1.57 per diluted share, in the same period of 2016. The fourth quarter and year ended December 31, 2017 results included two loan recoveries which added $252 thousand, after tax. The 2016 results for twelve-month period were impacted by a large loan recovery that resulted in approximately $1.5 million net income after taxes. In addition, we issued approximately 1.6 million new shares in February 2017 related to raising $32.8 million of additional capital, net of costs. The 2017 impact of the Tax Cut and Jobs Act was a net write down of $511 thousand, or approximately $0.05 per diluted share of net deferred tax assets.

“2017 was another strong year for Civista. We had many financial and non-financial accomplishments. When you remove the noise from the loan recoveries both in 2016 and 2017 and the tax expense impact of the Tax Cut and Jobs Act, our net income is up $389 thousand. We had a very successful $32.8 million capital raise in February which was largely oversubscribed. We have invested in a loan production office in Westlake and added lenders in our more vibrant markets. Our loan growth for the year was 10.3%. We were successful in improving our CRA rating, which allows us to pursue acquisitions again. Finally, we have completed our CEO succession with the retirement of Jim Miller. We thank Jim for his 31 years of service and look forward to his continued involvement on our board.” said Dennis G. Shaffer, President and CEO of Civista.

Results of Operations:

Net interest income for the fourth quarter of 2017 increased $2.0 million, or 16.0% compared to the same period of 2016 and for the year ended December 31 increased $4.2 million, or 8.4%, compared to 2016. An increase in average loans outstanding primarily contributed to the increase in interest income for the fourth quarter and year ended 2017. The net interest income for the fourth quarter of 2017 included approximately $387 thousand of recovered interest income on two previously nonaccrual loans, which resulted in approximately 10 basis points of additional net interest margin for the fourth quarter and 2 basis points for the year ended 2017. The net interest income for the twelve-month period in 2016 included approximately $919 thousand of recovered interest income on a previous nonaccrual loan, which resulted in approximately 9 basis points of additional net interest margin. An increase in market interest


rates and an increase in brokered deposits contributed to the increase in interest expense. The Federal Reserve increased short-term interest rates 75 basis points during 2017. Tax equivalent net interest margin was 4.24% for the fourth quarter, compared to 4.05% for the same period a year ago and was 4.01% for the twelve months ended December 31, 2017, compared to 3.93% for the same period a year ago.

Average Balance Analysis

(Unaudited - Dollars in thousands except share data)

 

     Three Months Ended December 31,  
     2017     2016  
     Average
balance
    Interest      Yield/
rate*
    Average
balance
    Interest      Yield/
rate*
 

Assets:

              

Interest-earning assets:

              

Loans

   $ 1,152,595     $ 13,987        4.82   $ 1,044,121     $ 11,875        4.53

Taxable securities

     145,594       981        2.69     133,617       825        2.49

Non-taxable securities

     98,029       846        5.43     77,841       687        5.55

Interest-bearing deposits in other banks

     12,261       25        0.81     19,349       20        0.41
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-earning assets

   $ 1,408,479       15,839        4.61   $ 1,274,928       13,407        4.31
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Noninterest-earning assets:

              

Cash and due from financial institutions

     22,984            23,159       

Premises and equipment, net

     17,864            17,820       

Accrued interest receivable

     5,440            4,935       

Intangible assets

     28,416            28,985       

Other assets

     7,450            10,958       

Bank owned life insurance

     25,031            24,456       

Less allowance for loan losses

     (12,985          (13,359     
  

 

 

        

 

 

      

Total Assets

   $ 1,502,679          $ 1,371,882       
  

 

 

        

 

 

      

Liabilities and Shareholders’ Equity:

              

Interest-bearing liabilities:

              

Demand and savings

   $ 592,643     $ 182        0.12   $ 572,092     $ 126        0.08

Time

     256,780       660        1.02     216,457       390        0.72

FHLB

     44,921       161        1.42     19,589       93        1.89

Federal funds purchased

     11       —          0.00     —         —          0.86

Subordinated debentures

     29,427       269        3.63     29,427       234        3.16

Repurchase agreements

     17,156       4        0.09     23,996       6        0.10
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-bearing liabilities

   $ 940,938       1,276        0.54   $ 861,561       849        0.39
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Noninterest-bearing deposits

     369,079            358,802       

Other liabilities

     10,167            13,802       

Shareholders’ equity

     182,495            137,717       
  

 

 

        

 

 

      

Total Liabilities and Shareholders’ Equity

   $ 1,502,679          $ 1,371,882       
  

 

 

        

 

 

      

Net interest income and interest rate spread

 

  $ 14,563        4.07     $ 12,558        3.92

Net interest margin

          4.24          4.05

 

*

- Interest yields are calculated using a 35% tax-equivalent adjustment


Average Balance Analysis

(Unaudited - Dollars in thousands except share data)

 

     Twelve Months Ended December 31,  
     2017     2016  
     Average
balance
    Interest      Yield/
rate*
    Average
balance
    Interest      Yield/
rate*
 

Assets:

              

Interest-earning assets:

              

Loans

   $ 1,109,069     $ 51,198        4.62   $ 1,025,908     $ 47,186        4.60

Taxable securities

     144,685       3,745        2.62     137,179       3,319        2.47

Non-taxable securities

     89,564       3,153        5.59     76,317       2,666        5.61

Interest-bearing deposits in other banks

     61,859       498        0.81     82,225       396        0.48
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-earning assets

   $ 1,405,177       58,594        4.30   $ 1,321,629       53,567        4.18
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Noninterest-earning assets:

              

Cash and due from financial institutions

     45,801            49,888       

Premises and equipment, net

     18,027            17,101       

Accrued interest receivable

     4,697            4,432       

Intangible assets

     28,605            29,213       

Other assets

     12,374            10,230       

Bank owned life insurance

     24,819            23,449       

Less allowance for loan losses

     (13,113          (14,225     
  

 

 

        

 

 

      

Total Assets

   $ 1,526,387          $ 1,441,717       
  

 

 

        

 

 

      

Liabilities and Shareholders’ Equity:

              

Interest-bearing liabilities:

              

Demand and savings

   $ 585,218     $ 595        0.10   $ 566,589     $ 470        0.08

Time

     200,797       1,747        0.87     209,093       1,526        0.73

FHLB

     54,100       695        1.28     28,081       405        1.44

Federal funds purchased

     119       2        1.68     116       1        0.86

Subordinated debentures

     29,427       1,035        3.52     29,427       884        3.00

Repurchase agreements

     18,234       18        0.10     21,767       22        0.10
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-bearing liabilities

   $ 887,895       4,092        0.46   $ 855,073       3,308        0.39
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Noninterest-bearing deposits

     450,648            434,601       

Other liabilities

     15,081            18,598       

Shareholders’ equity

     172,763            133,445       
  

 

 

        

 

 

      

Total Liabilities and Shareholders’ Equity

   $ 1,526,387          $ 1,441,717       
  

 

 

        

 

 

      

Net interest income and interest rate spread

 

  $ 54,502        3.84     $ 50,259        3.79

Net interest margin

          4.01          3.93

 

* - Interest yields are calculated using a 35% tax-equivalent adjustment


No provision for loan losses was made during 2017 and a credit provision of $1.3 million was recorded for the twelve months ended December 31, 2016 due to a large loan recovery.

During the quarter, noninterest income totaled $3.6 million, an increase of $487 thousand, compared to the prior year’s fourth quarter. Year-to-date noninterest income totaled $16.3 million, an increase of $202 thousand, or 1.3%, compared to the prior year.

 

Noninterest income                            
     Three months ended
December 31,
     Twelve months ended
December 31,
 
(dollars in thousands)    2017      2016      2017      2016  

Service charges

   $ 1,168      $ 1,118      $ 4,777      $ 4,832  

Net gain on sale of securities

     21        (1      12        19  

Net gain on sale of loans

     538        409        1,745        1,750  

ATM/Interchange fees

     661        510        2,304        2,094  

Wealth management fees

     835        689        3,068        2,678  

Bank owned life insurance

     144        148        573        563  

Tax refund processing fees

     —          —          2,750        2,750  

Other

     263        270        1,105        1,446  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total noninterest income

   $ 3,630      $ 3,143      $ 16,334      $ 16,132  
  

 

 

    

 

 

    

 

 

    

 

 

 

Gain on sale of loans increased $129 thousand, or 31.5%, for the quarter ended December 31, 2017 compared to 2016. ATM/Interchange fees increased $151 thousand and $210 thousand for the quarter and year ended December 31, 2017, primarily due to $100 thousand incentive received related the 2017 debit card conversion. Wealth management fees increased $146 thousand, or 21.2%, and $390 thousand, or 14.6%, for the quarter and year ended December 31, 2017 due to increased assets under management as well as market conditions. Assets under management have increased $17.0 million since the end of the third quarter 2017 and $48.8 million during 2017. Other income decreased $341 for the year ended December 31, 2017, compared to 2016, primarily due to a $173 thousand decrease in swap income and a $180 thousand decrease in gain/loss on sale of OREO properties.


During the quarter, noninterest expense totaled $12.4 million, an increase of $1.7 million, or 15.7%, compared to the prior year’s fourth quarter. Year-to-date noninterest expense increased $4.7 million, or 10.8%, when compared to the twelve months of 2016.

 

Noninterest expense                            
     Three months ended
December 31,
     Twelve months ended
December 31,
 
(dollars in thousands)    2017      2016      2017      2016  

Compensation expense

   $ 7,569      $ 6,270      $ 29,253      $ 25,323  

Net occupancy and equipment

     1,154        1,174        4,253        4,341  

Contracted data processing

     664        399        1,838        1,546  

Taxes and assessments

     345        228        1,526        1,534  

Professional services

     582        445        2,300        1,895  

Amortization of intangible assets

     104        172        586        699  

Marketing

     49        119        817        929  

Other

     1,920        1,895        8,031        7,588  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total noninterest expense

   $ 12,387      $ 10,702      $ 48,604      $ 43,855  
  

 

 

    

 

 

    

 

 

    

 

 

 

Compensation expense increased $1.3 million for the fourth quarter and $3.9 million for the year ending December 31, 2017.

The increases in compensation expense for both periods were due to an increase of fourteen full time equivalent employees, $864 thousand and $2.6 million of normal merit raises, commissions and incentives, $186 thousand and $526 thousand of insurance costs and $259 thousand and $740 thousand of pension expense. The pension expense increases are due to a pension curtailment incurred upon the retirement of some senior executives. Professional services costs increased $137 thousand for the fourth quarter and $405 thousand for the year ended December 31, 2017, primarily attributable to the Company retaining professional services to analyze its’ workflow systems and recommend process improvements and the reintroduction of state examination fees. Other expenses increased $443 thousand for the year ended December 31, 2017. Approximately $243 thousand of the increase is attributable to ATM/Interchange expenses, due to vendor credits that expired in the second quarter of 2016 and unreimbursed expenses related to the 2017 debit card conversion.

The efficiency ratio was 67.0% for the twelve months ended December 31, 2017 compared to 64.7% for the twelve months ended December 31, 2016. The increase in the efficiency ratio is due primarily to the increase in noninterest expense, partially offset by an increase in net interest income.


Balance Sheet

Total assets increased $148.6 million, or 10.8%, from December 31, 2016 to December 31, 2017, primarily due to an increase in the loan portfolio of $109.2 million and an increase in investment securities of $35.2 million.

The $109.2 million, or 10.3%, increase in the loan portfolio from December 31, 2016 to December 31, 2017, continues to come from growth in our Commercial and Agriculture, Commercial Real Estate and Residential Real Estate loan portfolios. The majority of the loan growth continued to come from our metropolitan markets. Real Estate Construction loans also increased this year, due to very successful development lending and multi-family projects.

 

End of period loan balances                            
(dollars in thousands)    December 31,
2017
     December 31,
2016
     $ Change      % Change  

Commercial and Agriculture

   $ 152,473      $ 135,462      $ 17,011        12.6

Commercial Real Estate:

           

Owner Occupied

     164,099        161,364        2,735        1.7

Non-owner Occupied

     425,623        395,931        29,692        7.5

Residential Real Estate

     268,735        247,308        21,427        8.7

Real Estate Construction

     97,531        56,293        41,238        73.3

Farm Real Estate

     39,461        41,170        (1,709      -4.2

Consumer and Other

     16,739        17,978        (1,239      -6.9
  

 

 

    

 

 

    

 

 

    

Total Loans

   $ 1,164,661      $ 1,055,506      $ 109,155        10.3
  

 

 

    

 

 

    

 

 

    

Total deposits increased $83.8 million, or 7.5%, from December 31, 2016 to December 31, 2017. The increase was due primarily to $67.4 million of additional brokered deposits. Brokered deposits are used to fund loan growth.

 

End of period deposit balances                            
(dollars in thousands)    December 31,
2017
     December 31,
2016
     $ Change      % Change  

Noninterest-bearing demand

   $ 361,964      $ 345,588      $ 16,376        4.7

Interest-bearing demand

     183,680        183,759        (79      0.0

Savings and money market

     404,690        384,330        20,360        5.3

Time deposits

     138,557        158,774        (20,217      -12.7

Brokered deposits

     116,032        48,652        67,380        138.5
  

 

 

    

 

 

    

 

 

    

Total Deposits

   $ 1,204,923      $ 1,121,103      $ 83,820        7.5
  

 

 

    

 

 

    

 

 

    


Federal Home Loan Bank advances increased $23.4 million or 48.2% from December 31, 2016 to December 31, 2017, primarily to fund loan growth.

Total shareholders’ equity increased $46.8 million, or 34.0%, from December 31, 2016 to December 31, 2017, primarily due to approximately $32.8 million of additional common equity raised in February. Retained earnings also increased by $12.4 million.

Asset Quality

The Company recorded net charge-offs of $171 thousand for the twelve months of 2017 compared to net recoveries of $244 thousand for the same period of 2016.

 

Allowance for Loan Losses

             
(dollars in thousands)    December 31,
2017
     December 31,
2016
 

Beginning of period

   $ 13,305      $ 14,361  

Charge-offs

     (942      (1,826

Recoveries

     771        2,070  

Provision

     —          (1,300
  

 

 

    

 

 

 

End of period

   $ 13,134      $ 13,305  
  

 

 

    

 

 

 

The allowance for loan losses to loans was 1.13% for 2017 and 1.26% for 2016. The decrease is due to the loan growth during 2017. Asset quality improved with non-performing assets to assets ratio decreasing to 0.63% from 0.85% in 2016. The allowance for loan losses to non-performing loans increased to 137.82% from 113.74% in 2016.

Non-performing assets at December 31, 2017 were $9.5 million, an 18.7% decrease from December 31, 2016.

 

Non-performing Assets

             
(dollars in thousands)    December 31,
2017
     December 31,
2016
 

Non-accrual loans

   $ 6,642      $ 7,518  

Restructured loans

     2,888        4,180  
  

 

 

    

 

 

 

Total non-performing loans

     9,530        11,698  

Other Real Estate Owned

     16        37  
  

 

 

    

 

 

 

Total non-performing assets

   $ 9,546      $ 11,735  
  

 

 

    

 

 

 

Mr. Shaffer continued, “As we close out another successful year we are very pleased with our results. Our core net income is up, our asset quality has continued to improve and we are free from our CRA issue. Our 2018 initiatives will include continued loan growth, maintaining our asset quality, mergers and acquisitions and deposit acquisition strategies.”


Civista Bancshares, Inc. is a $1.5 billion financial holding company headquartered in Sandusky, Ohio. The Company’s banking subsidiary, Civista Bank, operates 29 locations in Northern, Mid-Central and Southwestern Ohio.

Civista Bancshares, Inc. may be accessed at www.civb.com. The Company’s common shares are traded on the NASDAQ Capital Market under the symbol “CIVB”. The Company’s depositary shares, each representing a 1/40th ownership interest in a Series B Preferred Share, are traded on the NASDAQ Capital Market under the symbol “CIVBP”.

This press release may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of Civista. For these statements, Civista claims the protections of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Civista, including the information in the filings we make with the Securities and Exchange Commission. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include risk factors relating to the banking industry and the other factors detailed from time to time in Civista’ reports filed with the Securities and Exchange Commission, including those described in “Item 1A Risk Factors” of Part I of Civista’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016. Undue reliance should not be placed on the forward-looking statements, which speak only as of the date hereof. Civista does not undertake, and specifically disclaims any obligation, to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

For additional information, contact:

Dennis G. Shaffer

President and CEO

Civista Bancshares, Inc.

888-645-4121


Civista Bancshares, Inc.

Financial Highlights

(dollars in thousands, except share amounts)

 

Consolidated Condensed Statement of Income  
   

Three Months Ended

December 31,

(unaudited)

   

Twelve Months Ended
December 31,

(unaudited)

 
    2017     2016     2017     2016  

Interest income

    15,839       13,407       58,594       53,567  

Interest expense

    1,276       849       4,092       3,308  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income

    14,563       12,558       54,502       50,259  

Provision for loan losses

    —         —         —         (1,300
 

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income after provision

    14,563       12,558       54,502       51,559  

Noninterest income

    3,630       3,143       16,334       16,132  

Noninterest expense

    12,387       10,702       48,604       43,855  
 

 

 

   

 

 

   

 

 

   

 

 

 

Income before taxes

    5,806       4,999       22,232       23,836  

Income tax expense

    1,826       1,368       6,360       6,619  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net income

    3,980       3,631       15,872       17,217  

Preferred stock dividends

    308       345       1,244       1,501  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net income available to common shareholders

    3,672       3,286       14,628       15,716  

Dividends per common share

  $ 0.07     $ 0.06     $ 0.25     $ 0.22  

Earnings per common share, basic

  $ 0.36     $ 0.40     $ 1.48     $ 1.96  

diluted

  $ 0.32     $ 0.33     $ 1.28     $ 1.57  

Average shares outstanding, basic

    10,179,079       8,274,166       9,906,856       8,010,650  

diluted

    12,597,396       10,964,108       12,352,616       10,951,212  

Selected financial ratios:

       

Return on average assets

    1.05     1.05     1.04     1.19

Return on average equity

    8.65     10.49     9.19     12.90

Dividend payout ratio

    17.90     13.67     15.60     10.24

Net interest margin (tax equivalent)

    4.24     4.05     4.01     3.93


Selected Balance Sheet Items

 

     December 31,
2017
    December 31,
2016
 
     (unaudited)     (unaudited)  

Cash and due from financial institutions

   $ 40,519     $ 36,695  

Investment securities

     231,062       195,864  

Loans held for sale

     2,197       2,268  

Loans

     1,164,661       1,055,506  

Less allowance for loan losses

     13,134       13,305  
  

 

 

   

 

 

 

Net loans

     1,151,527       1,042,201  

Other securities

     14,247       14,055  

Fixed assets

     17,816       17,920  

Goodwill and other intangibles

     28,374       28,879  

Bank owned life insurance

     25,125       24,552  

Other assets

     14,990       14,829  
  

 

 

   

 

 

 

Total assets

   $ 1,525,857     $ 1,377,263  
  

 

 

   

 

 

 

Total deposits

   $ 1,204,923     $ 1,121,103  

Federal Home Loan Bank advances

     71,900       48,500  

Securities sold under agreements to repurchase

     21,755       28,925  

Subordinated debentures

     29,427       29,427  

Accrued expenses and other liabilities

     13,391       11,692  

Total shareholders’ equity

     184,461       137,616  
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 1,525,857     $ 1,377,263  
  

 

 

   

 

 

 

Shares outstanding at period end

     10,198,475       8,343,509  

Book value per share

   $ 16.39     $ 14.22  

Equity to asset ratio

     12.09     9.99

Selected asset quality ratios:

    

Allowance for loan losses to total loans

     1.13     1.26

Non-performing assets to total assets

     0.63     0.85

Allowance for loan losses to non-performing loans

     137.82     113.74

Non-performing asset analysis

    

Nonaccrual loans

   $ 6,642     $ 7,518  

Troubled debt restructurings

     2,888       4,180  

Other real estate owned

     16       37  
  

 

 

   

 

 

 

Total

   $ 9,546     $ 11,735  
  

 

 

   

 

 

 


Supplemental Financial Information

(Unaudited - Dollars in thousands except share data)

 

End of Period Balances

   December 31,
2017
    September 30,
2017
    June 30,
2017
    March 31,
2017
    December 31,
2016
 

Assets

          

Cash and due from banks

   $ 40,519     $ 33,394     $ 39,515     $ 182,446     $ 36,695  

Securities available for sale

     231,062       229,419       230,197       223,245       195,864  

Loans held for sale

     2,197       4,662       4,728       1,740       2,268  

Loans

     1,164,661       1,141,992       1,100,817       1,075,240       1,055,506  

Allowance for loan losses

     (13,134     (12,946     (13,047     (13,300     (13,305
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Loans

     1,151,527       1,129,046       1,087,770       1,061,940       1,042,201  

Other securities

     14,247       14,247       14,225       14,072       14,055  

Fixed assets

     17,816       17,688       17,777       17,952       17,920  

Goodwill and other intangibles

     28,374       28,455       28,589       28,727       28,879  

Bank owned life insurance

     25,125       24,981       24,839       24,696       24,552  

Other assets

     14,990       14,196       14,375       14,197       14,829  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Assets

   $ 1,525,857     $ 1,496,088     $ 1,462,015     $ 1,569,015     $ 1,377,263  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities

          

Total deposits

   $ 1,204,923     $ 1,201,289     $ 1,164,888     $ 1,311,453     $ 1,121,103  

Federal Home Loan Bank advances

     71,900       56,750       63,300       15,000       48,500  

Securities sold under agreement to repurchase

     21,755       15,148       12,730       23,674       28,925  

Subordinated debentures

     29,427       29,427       29,427       29,427       29,427  

Accrued expenses and other liabilities

     13,391       11,493       12,827       14,724       11,692  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

     1,341,396       1,314,107       1,283,172       1,394,278       1,239,647  

Shareholders’ Equity

          

Preferred shares, Series B

     17,358       17,557       17,568       17,708       18,950  

Common stock

     153,810       153,562       153,495       153,167       118,975  

Accumulated earnings

     31,652       28,494       25,751       23,073       19,263  

Treasury stock

     (17,235     (17,235     (17,235     (17,235     (17,235

Accumulated other comprehensive income (loss)

     (1,124     (397     (736     (1,976     (2,337
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total shareholders’ equity

     184,461       181,981       178,843       174,737       137,616  

Total Liabilities and Shareholders’ Equity

   $ 1,525,857     $ 1,496,088     $ 1,462,015     $ 1,569,015     $ 1,377,263  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Quarterly Average Balances

          

Assets:

          

Earning assets

   $ 1,408,479     $ 1,377,137     $ 1,368,387     $ 1,467,678     $ 1,274,928  

Securities

     243,623       243,556       238,400       210,962       211,458  

Loans

     1,152,595       1,122,131       1,092,574       1,067,903       1,044,121  

Liabilities and Shareholders’ Equity

          

Total deposits

   $ 1,218,502     $ 1,152,235     $ 1,186,640     $ 1,392,109     $ 1,147,351  

Interest-bearing deposits

     849,423       788,452       737,470       767,794       788,549  

Interest-bearing liabilities

     91,515       130,057       104,084       81,448       73,012  

Total shareholders’ equity

     182,495       179,925       176,285       151,928       137,717  


Supplemental Financial Information

(Unaudited - Dollars in thousands except share data)

 

    Three Months Ended  

Income statement

  December 31,
2017
    September 30,
2017
    June 30,
2017
    March 31,
2017
    December 31,
2016
 

Total interest income

  $ 15,839     $ 14,836     $ 14,228     $ 13,692     $ 13,407  

Total interest expense

    1,276       1,156       861       800       849  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income

    14,563       13,680       13,367       12,892       12,558  

Provision for loan losses

    —         —         —         —         —    

Noninterest income

    3,630       3,465       4,101       5,138       3,143  

Noninterest expense

    12,387       12,167       12,549       11,502       10,702  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before taxes

    5,806       4,978       4,919       6,528       4,999  

Income tax expense

    1,826       1,318       1,323       1,893       1,368  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

    3,980       3,660       3,596       4,635       3,631  

Preferred stock dividends

    308       308       308       319       345  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income available to common shareholders

  $ 3,672     $ 3,352     $ 3,288     $ 4,316     $ 3,286  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Common shares dividend paid

  $ 712     $ 610     $ 609     $ 507     $ 495  

Per share data

         

Basic net income per common share

  $ 0.36     $ 0.33     $ 0.32     $ 0.47     $ 0.40  

Diluted net income per common share

    0.32       0.29       0.29       0.40       0.33  

Dividends per common share

    0.07       0.06       0.06       0.06       0.06  

Average common shares outstanding - basic

    10,179,079       10,170,734       10,162,527       9,100,329       8,273,167  

Average common shares outstanding - diluted

    12,597,396       12,597,299       12,593,876       11,608,333       10,963,109  

Asset quality

         

Allowance for loan losses, beginning of period

  $ 12,946     $ 13,047     $ 13,300     $ 13,305     $ 13,451  

Charge-offs

    (145     (309     (357     (131     (287

Recoveries

    333       208       104       126       141  

Provision

    —         —         —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Allowance for loan losses, end of period

  $ 13,134     $ 12,946     $ 13,047     $ 13,300     $ 13,305  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios

         

Allowance to total loans

    1.13     1.13     1.19     1.24     1.26

Allowance to nonperforming assets

    137.58     117.19     120.25     113.48     113.38

Allowance to nonperforming loans

    137.82     117.47     120.54     114.34     113.74

Nonperforming assets

         

Nonperforming loans

  $ 9,530     $ 11,021     $ 10,823     $ 11,632     $ 11,698  

Other real estate owned

    16       27       27       17       37  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total nonperforming assets

  $ 9,546     $ 11,048     $ 10,850     $ 11,649     $ 11,735  

Capital and liquidity

         

Tier 1 leverage ratio

    12.69     12.74     12.50     11.08     10.55

Tier 1 risk - based capital ratio

    15.45     15.54     15.87     15.93     12.98

Total risk - based capital ratio

    16.53     16.63     17.01     17.12     14.20

Tangible common equity ratio

    10.00     9.31     9.30     8.37     6.70