Loan Type

Loan Count

Principal Balance (in thousands)

% of Loan Type

Mortgage loans on real estate:

Residential first mortgages

14

$

2,886

1%

Commercial mortgages (non-owner occupied)

23

47,102

17%

Construction, land and land development

13

22,879

17%

Commercial mortgages (owner occupied)

17

10,520

14%

Residential revolving and junior mortgages

1

257

1%

Commercial and industrial

87

17,575

9%

Consumer

2

8

0%

     Total

157

$

101,227

10%

•

Income before income taxes for the third quarter of 2020 was $2.1 million compared to a loss before income taxes of $8.3 million for the second quarter of 2020. Income before income taxes for the third quarter of 2020 included $1.5 million of Merger-related expenses, while the loss before income taxes for the second quarter of 2020 included a $10.4 million goodwill impairment charge, as reported previously.

•

Interest income for the three months ended September 30, 2020 was $12.1 million, on average interest-earning assets of $1.19 billion, compared to $12.0 million, on average interest-earning assets of $1.16 billion, for the three months ended June 30, 2020. Interest income in the third and second quarters of 2020 included accretion of acquired loan discounts of $97 thousand and $93 thousand, respectively. Yields on average interest-earning assets were 4.03% and 4.17% for the third and second quarters of 2020, respectively. Yields on average interest-earning assets in the third quarter of 2020 were negatively affected by lower yields on loans originated or renewed at lower rates. PPP loans, which the company began originating early in the second quarter of 2020, had a negative 4 and 3 basis point effect on loan yields in the third and second quarters of 2020, respectively. Partially offsetting the decline in yield were higher average balances of gross loans in the third quarter of 2020 of $31.8 million.

•

Interest expense was $2.7 million and $3.0 million for the three months ended September 30, 2020 and June 30, 2020, respectively, and cost of funds was 0.96% and 1.12% for the sequential quarter periods. Average interest-bearing liabilities were $925.8 million and $914.8 million for the third and second quarters of 2020, respectively. Cost of deposits was 0.82% for the third quarter of 2020, down 15 basis points from 0.97% for the second quarter of 2020.

•

Net interest margin (“NIM”) was 3.14% for the third quarter of 2020 compared to 3.11% for the second quarter of 2020. The increase in NIM was primarily attributable to lower cost of funds, including higher average noninterest-bearing demand deposit balances, partially offset by lower yields on interest-earning assets.

•

Provision for loan losses was $869 thousand for the third quarter of 2020 compared to $2.0 million for the second quarter of 2020. The third quarter of 2020 provision expense was primarily attributable to specific reserves on loans to borrowers adversely effected by the COVID-19 pandemic. Of the second quarter of 2020 provision amount, approximately $1.4 million was attributable to qualitative loss factors to provide for losses estimated to have been incurred as of June 30, 2020, as a result of challenges certain borrowers are facing due to the pandemic.

•

Noninterest income for the three months ended September 30, 2020 and June 30, 2020 was $2.3 million and $2.2 million, respectively. Secondary market sales and servicing income increased $351 thousand in the third quarter of 2020 compared to the second quarter of 2020, driven by an increase in the demand for purchase money and refinance mortgages and a positive fair market value adjustment to the company’s mortgage servicing rights asset. In addition, wealth management fee income increased $122 thousand on a sequential quarter basis. Partially offsetting these increases was lower referral fee income of $410 thousand in the third quarter of 2020. As previously reported, the company earns referral fees for referring loan customers to a third-party financial institution to execute interest rate swaps.

•

Noninterest expense for the three months ended September 30, 2020 and June 30, 2020 was $8.6 million and $17.5 million, respectively. The third quarter of 2020 included $1.5 million of Merger-related expenses compared to none for the second quarter of 2020, while the second quarter of 2020 included a $10.4 million goodwill impairment charge, as previously reported. The company’s efficiency ratio was 74.1% and 156.7% for the third and second quarters of 2020, respectively. The

company’s efficiency ratio excluding Merger-related expenses and the goodwill impairment charge was 61.6%¹ and 63.6%¹ for the third and second quarters of 2020, respectively.

•

Income tax expense for the third quarter of 2020 was $655 thousand, reflective of a 30.5% effective income tax rate, while income tax benefit for the second quarter of 2020 was $217 thousand, reflective of a 2.6% effective income tax rate. The effective income tax rate in the third quarter of 2020 was higher than the statutory federal income tax rate of 21% primarily as a result of nondeductible Merger-related expenses. The income tax benefit in the second quarter of 2020 was a result of income tax expense before the goodwill impairment charge, offset by an income tax benefit (reversal of a deferred tax liability) of $590 thousand related to a portion of the goodwill.

•

Loss before income taxes for the nine months ended September 30, 2020 was $6.3 million compared to income before income taxes of $6.2 million for the nine months ended September 30, 2019. The loss before income taxes for the nine months ended September 30, 2020 included a $10.4 million goodwill impairment charge recorded in the second quarter of 2020 and $1.5 million of Merger-related expenses recorded in the third quarter of 2020.

•

Interest income for the nine months ended September 30, 2020 was $36.3 million, on average interest-earning assets of $1.14 billion, compared to $37.5 million for the nine months ended September 30, 2019, on average interest-earning assets of $1.04 billion. Interest income in the first nine months of 2020 included accretion of acquired loan discounts of $381 thousand, while interest income in the first nine months of 2019 included $993 thousand of accretion of acquired loan discounts. Yields on average interest-earning assets were 4.24% and 4.85% for the nine months ended September 30, 2020 and 2019, respectively. The lower yield on average interest-earning assets in the 2020 period was primarily due to lower yields on loans originated during the period, the repricing of variable rate loans, the addition of lower yielding PPP loans, which had a negative 3 basis point effect on yield, and lower accretion of acquired loan discounts, which had a negative 8 basis point effect on yield. Partially offsetting these negative effects were higher average balances of gross loans in the 2020 period of $90.9 million.

•

Interest expense was $9.3 million and $11.2 million for the nine months ended September 30, 2020 and 2019, respectively, and cost of funds was 1.16% and 1.55% for the respective periods. Average balances of noninterest-bearing demand accounts increased $50.0 million for the 2020 period from the 2019 period. Average interest-bearing liabilities were $904.2 million and $854.1 million for the nine months ended September 30, 2020 and 2019, respectively.

•

NIM was 3.15% for the first nine months of 2020 compared to 3.39% for the same period of 2019. Lower NIM in the 2020 period was primarily due to lower yields on average interest-earning assets, primarily loans, and lower accretion of acquired loan discounts, partially offset by lower cost of funds.

•

Provision for loan losses was $5.7 million for the first nine months of 2020 compared to $871 thousand for the same period of 2019. Provision for loan losses in the 2020 period was primarily attributable to qualitative loss factors for increases in state unemployment rates, including Virginia, and for losses estimated to have been incurred as of September 30, 2020 due to the COVID-19 pandemic, gross loan growth, excluding PPP loans, of approximately $71.9 million, and higher specific reserves on impaired loans. The company recorded no provision for loan losses for PPP loans due to the U.S. government guarantee.

•

Noninterest income for the nine months ended September 30, 2020 and 2019 was $5.9 million and $3.6 million, respectively. The 2020 period included higher secondary market sales and servicing income of $1.4 million and $1.1 million of referral fee income, while the 2019 period included no income from such activities.

•

Noninterest expense for the nine months ended September 30, 2020 and 2019 were $33.4 million and $22.7 million, respectively. Excluding the goodwill impairment charge of $10.4 million and Merger-related expenses of $1.5 million incurred in the 2020 period, noninterest expense decreased $1.1 million on a comparative period basis. Decreases in certain noninterest expenses in the 2020 period were primarily attributable to reduced headcount and occupancy costs, resulting from temporary and permanent branch closures, and overall general expense control.

•

Income tax expense for the first nine months of 2020 was $378 thousand, reflective of a 6.0% effective income tax rate, while income tax expense for the first nine months of 2019 was $1.2 million, reflective of an 18.9% effective income tax rate. Income tax expense for the first nine months of 2020 includes the result of income tax expense before the goodwill impairment charge, offset by the related deferred tax benefit, and the effect of nondeductible Merger-related expenses, as noted previously.

•

Income before income taxes for the third quarter of 2020 was $2.1 million compared to income before income taxes of $2.3 million for the third quarter of 2019. Income before income taxes for the third quarter of 2020 includes $1.5 million of Merger-related expenses.

•

Interest income for the three months ended September 30, 2020 was $12.1 million, on average interest-earning assets of $1.19 billion, compared to $12.8 million, on average interest-earning assets of $1.04 billion, for the three months ended September 30, 2019. Interest income in the third quarter of 2020 included accretion of acquired loan discounts of $97 thousand, while interest income in the third quarter of 2019 included $357 thousand of accretion of acquired loan discounts. Yields on average interest-earning assets were 4.03% and 4.87% for the third quarters of 2020 and 2019, respectively. Yields

on average interest-earning assets in the third quarter of 2020 were negatively affected by lower yields on loans originated, including PPP loans, in 2020, the repricing of variable rate loans, and lower accretion of acquired loan discounts, which had a negative 10 basis point effect.

•

Interest expense was $2.7 million and $3.7 million for the three months ended September 30, 2020 and 2019, respectively, and cost of funds was 0.96% and 1.52% for the respective periods. Average interest-bearing liabilities were $925.8 million and $851.4 million for the third quarters of 2020 and 2019, respectively. Cost of deposits was 0.82% for the third quarter of 2020, down 58 basis points from 1.40% for the third quarter of 2019.

•

NIM was 3.14% for the third quarter of 2020 compared to 3.45% for the third quarter of 2019. The decrease in NIM was primarily attributable to lower yields on loans, partially offset by lower cost of funds.

•

Provision for loan losses was $869 thousand in the third quarter of 2020 compared to $495 thousand in the third quarter of 2019.

•

Noninterest income for the three months ended September 30, 2020 and 2019 was $2.3 million and $1.2 million, respectively. Higher noninterest income in the 2020 period was primarily due to higher secondary market sales and servicing income of $789 thousand and higher wealth management fee income of $165 thousand.

•

Noninterest expense for the three months ended September 30, 2020 and 2019 was $8.6 million and $7.4 million, respectively. The company’s efficiency ratio was 74.1% and 72.8% for the third quarters of 2020 and 2019, respectively. The company’s efficiency ratio, excluding the $1.5 million of Merger-related expenses incurred in the 2020 period, was 61.6%¹ and 72.8%¹ for the third quarters of 2020 and 2019, respectively.

•

Income tax expense for the third quarter of 2020 was $655 thousand, reflective of a 30.5% effective income tax rate, due to the reasons noted previously. Income tax expense for the third quarter of 2019 was $448 thousand, reflective of an 19.6% effective income tax rate.

•

Total assets were $1.25 billion and $1.13 billion at September 30, 2020 and December 31, 2019, respectively.

•

Loans, net of allowance for loan losses, were $1.04 billion at September 30, 2020 compared to $916.6 million at December 31, 2019, a $125.1 million increase, including $56.8 million of PPP loans. Excluding PPP loans, net loan growth for the first nine months of 2020 was $68.3 million, an annualized rate of approximately 10%.

•

Deposits were $1.03 billion at September 30, 2020 compared to $910.4 million at December 31, 2019, a $117.2 million increase, including an increase of $52.9 million of noninterest-bearing demand account balances. Noninterest-bearing demand accounts comprised 18.6% of total deposits at September 30, 2020, an increase from 15.2% and 13.6% at December 31, 2019 and September 30, 2019, respectively.

•

Shareholders’ equity was $121.4 million and $126.2 million at September 30, 2020 and December 31, 2019, respectively, a decrease of $4.8 million. The decrease in shareholders’ equity in the 2020 period was primarily attributable to a year-to-date net loss of $6.6 million, partially offset by net unrealized gains of approximately $1.1 million on the company’s available-for-sale securities portfolio. Tangible book value, calculated as shareholders’ equity less goodwill and core deposit intangible assets, net of the associated deferred tax liability, divided by common shares outstanding, was $9.04¹ and $8.64¹ at September 30, 2020 and December 31, 2019, respectively.

•

The company made no purchases of its common stock outstanding in the first nine months of 2020, pursuant to a share repurchase program authorized by its board of directors in the fourth quarter of 2019.

•

Capital ratios for Virginia Commonwealth Bank were above regulatory minimum guidelines for well-capitalized banks as of September 30, 2020 and December 31, 2019.

•

Annualized return (loss) on average assets for the quarters ended September 30, 2020, June 30, 2020, and September 30, 2019 was 0.48%, (2.64)%, and 0.66%, respectively, while annualized return (loss) on average shareholders’ equity for the same periods was 4.95%, (25.40)%, and 5.97%, respectively. Excluding the $1.5 million of Merger-related expenses reported in the third quarter of 2020, annualized return on average assets and annualized return on average shareholders’ equity for the three months ended September 30, 2020 were 0.93%¹ and 9.64%¹, respectively. Excluding the goodwill impairment charge of $10.4 million incurred in the second quarter of 2020, annualized return on average assets and annualized return on average shareholders’ equity for the three months ended June 30, 2020 were 0.54%¹ and 5.18%¹, respectively.  

•

Nonperforming assets were $18.3 million, or 1.46% of total assets, as of September 30, 2020, compared to $6.4 million, or 0.56% of total assets, as of December 31, 2019, and $9.4 million, or 0.84% of total assets, as of September 30, 2019. The increase in nonperforming assets from December 31, 2019 to September 30, 2020 was primarily attributable to $12.7 million of higher balances of nonaccrual loans to borrowers adversely affected by the COVID-19 pandemic.

•

The ratio of allowance for loan losses to total gross loans was 1.22%, 0.82%, and 0.80% at September 30, 2020, December 31, 2019, and September 30, 2019, respectively. Due to the full U.S. government guarantee on PPP loans, the company has recorded no allowance for loan losses for $56.8 million of PPP loans outstanding as of September 30, 2020. Excluding PPP loans from the denominator of the ratio of allowance for loan losses to total gross results in a ratio of 1.29%¹ as of September 30, 2020. Further, the company’s allowance for loan losses does not include discounts recorded on loans acquired in the

company’s 2017 merger with Virginia BanCorp, Inc., which were $1.5 million, $1.9 million, and $2.9 million as of September 30, 2020, December 31, 2019, and September 30 2019, respectively.

(unaudited)

(Dollars in thousands, except share data)

September 30, 2020

December 31, 2019 (1)

ASSETS

Cash and due from banks

$

9,324

$

6,096

Interest-earning deposits

50,069

34,358

Federal funds sold

152

1,359

Certificates of deposit

1,266

2,754

Available-for-sale securities, at fair value

87,853

99,454

Restricted securities

5,022

5,706

Loans receivable, net of allowance for loan losses of $12,899 and

   $7,562, respectively

1,041,711

916,628

Loans held for sale

2,687

1,231

Premises and equipment, net

17,859

20,141

Accrued interest receivable

4,664

3,035

Other real estate owned, net

1,113

1,916

Bank owned life insurance

20,103

19,752

Goodwill

—

10,374

Mortgage servicing rights

845

935

Core deposit intangible

1,094

1,518

Other assets

7,820

6,666

Total assets

$

1,251,582

$

1,131,923

LIABILITIES

Noninterest-bearing demand deposits

$

190,843

$

137,933

Savings and interest-bearing demand deposits

424,001

382,607

Time deposits

412,837

389,900

Total deposits

1,027,681

910,440

Securities sold under repurchase agreements

1,117

6,525

Federal Home Loan Bank advances

25,000

45,000

Federal Reserve Bank advances

32,637

—

Subordinated notes, net of unamortized issuance costs

31,083

31,001

Other liabilities

12,635

12,772

Total liabilities

1,130,153

1,005,738

SHAREHOLDERS' EQUITY

Common stock ($5 par value; authorized - 30,000,000 shares;

   outstanding - 13,342,104 and 13,261,801 shares, respectively) (2)

66,711

66,309

Additional paid-in capital

36,816

36,658

Unearned employee stock ownership plan shares

(1,326

)

(1,525

)

Retained earnings

18,012

24,660

Accumulated other comprehensive income, net

1,216

83

Total shareholders' equity

121,429

126,185

Total liabilities and shareholders' equity

$

1,251,582

$

1,131,923

For the Three Months Ended

(Dollars in thousands, except per share data)

September 30, 2020

June 30, 2020

September 30, 2019

INTEREST INCOME

Loans, including fees

$

11,371

$

11,290

$

11,930

Securities:

Taxable

596

573

553

Tax-exempt

88

89

113

Federal funds sold

—

—

6

Interest-earning deposit accounts

6

8

145

Certificates of deposit

9

14

18

Total interest income

12,070

11,974

12,765

INTEREST EXPENSE

Deposits

2,104

2,411

3,123

Securities sold under repurchase agreements

—

1

4

Subordinated notes and other borrowings

510

510

142

Federal Home Loan Bank advances

50

90

465

Federal Reserve Bank advances

29

20

—

Total interest expense

2,693

3,032

3,734

Net interest income

9,377

8,942

9,031

Provision for loan losses

869

2,027

495

Net interest income after provision for loan losses

8,508

6,915

8,536

NONINTEREST INCOME

Trust management

220

203

201

Service charges and fees on deposit accounts

155

137

243

Wealth management

350

228

185

Interchange fees, net

149

130

108

Other service charges and fees

33

28

32

Secondary market sales and servicing

1,082

731

293

Increase in cash surrender value of bank owned life insurance

117

116

122

Net gains on sales and calls of available-for-sale securities

—

3

1

Net gains on disposition of other assets

12

1

—

Net gains on rabbi trust assets

74

114

—

Referral fees

86

496

—

Other

8

7

15

Total noninterest income

2,286

2,194

1,200

NONINTEREST EXPENSE

Salaries and employee benefits

3,801

3,839

3,666

Occupancy

700

705

805

Data processing

491

498

541

Bank franchise tax

256

257

209

Telecommunications and other technology

396

371

258

FDIC assessments

262

147

(7

)

Foreclosed property

22

28

48

Consulting

54

70

156

Advertising and marketing

47

26

124

Directors' fees

187

188

148

Audit and accounting

92

170

193

Legal

(210

)

154

20

Core deposit intangible amortization

134

142

164

Net other real estate owned losses

176

81

375

Goodwill impairment

—

10,374

—

Merger-related

1,456

—

—

Other

782

403

747

Total noninterest expense

8,646

17,453

7,447

Income (loss) before income taxes

2,148

(8,344

)

2,289

Income tax expense (benefit)

655

(217

)

448

Net income (loss)

$

1,493

$

(8,127

)

$

1,841

Basic and diluted earnings (loss) per share

$

0.11

$

(0.62

)

$

0.14

For the Nine Months Ended

(Dollars in thousands, except per share data)

September 30, 2020

September 30, 2019

INTEREST INCOME

Loans, including fees

$

34,013

$

34,849

Securities:

Taxable

1,821

1,725

Tax-exempt

270

327

Federal funds sold

2

31

Interest-earning deposit accounts

119

432

Certificates of deposit

37

57

Total interest income

36,262

37,421

INTEREST EXPENSE

Deposits

7,364

9,019

Securities sold under repurchase agreements

3

11

Subordinated notes and other borrowings

1,531

417

Federal Home Loan Bank advances

374

1,784

Federal Reserve Bank advances

49

—

Total interest expense

9,321

11,231

Net interest income

26,941

26,190

Provision for loan losses

5,673

871

Net interest income after provision for loan losses

21,268

25,319

NONINTEREST INCOME

Trust management

615

621

Service charges and fees on deposit accounts

529

727

Wealth management

824

654

Interchange fees, net

378

330

Other service charges and fees

94

88

Secondary market sales and servicing

2,015

632

Increase in cash surrender value of bank owned life insurance

351

362

Net gains (losses) on sales and calls of available-for-sale securities

29

(1

)

Net gains (losses) on disposition of other assets

5

(2

)

Net (losses) gains on rabbi trust assets

(76

)

130

Referral fees

1,052

—

Other

54

44

Total noninterest income

5,870

3,585

NONINTEREST EXPENSE

Salaries and employee benefits

11,267

11,532

Occupancy

2,156

2,510

Data processing

1,526

1,738

Bank franchise tax

770

655

Telecommunications and other technology

1,176

727

FDIC assessments

557

371

Foreclosed property

58

110

Consulting

195

418

Advertising and marketing

140

300

Directors' fees

568

525

Audit and accounting

402

586

Legal

135

130

Core deposit intangible amortization

425

517

Net other real estate owned losses

256

441

Goodwill impairment

10,374

—

Merger-related

1,456

—

Other

1,947

2,108

Total noninterest expense

33,408

22,668

(Loss) income before income taxes

(6,270

)

6,236

Income tax expense

378

1,180

Net (loss) income

$

(6,648

)

$

5,056

Basic and diluted (loss) earnings per share

$

(0.51

)

$

0.39

As of and for the

As of and for the Three Months Ended

Year Ended

September 30,

June 30,

March 31,

December 31,

September 30,

December 31,

(Dollars in thousands, except per share amounts)

2020

2020

2020

2019

2019

2019

Select Consolidated Balance Sheet Data

Total assets

$

1,251,582

$

1,238,226

$

1,183,553

$

1,131,923

$

1,112,219

Cash, interest-earning deposits and federal funds sold

59,545

39,912

56,006

41,813

31,405

Available-for-sale securities, at fair value

87,853

92,560

94,618

99,454

80,748

Loans:

Mortgage loans on real estate

806,283

798,109

762,404

730,788

731,280

Commercial and industrial

187,219

193,740

198,278

181,730

186,281

Paycheck Protection Program

56,788

55,496

—

—

—

Consumer

6,443

7,855

9,846

11,985

14,471

Loans receivable

1,056,733

1,055,200

970,528

924,503

932,032

Unamortized net deferred loan fees

(2,123

)

(2,345

)

(333

)

(313

)

(269

)

Allowance for loan losses (ALL)

(12,899

)

(12,007

)

(10,172

)

(7,562

)

(7,495

)

Net loans

1,041,711

1,040,848

960,023

916,628

924,268

Loans held for sale

2,687

2,521

747

1,231

268

Other real estate owned, net

1,113

1,903

1,679

1,916

2,178

Total liabilities

$

1,130,153

$

1,118,536

$

1,056,151

$

1,005,738

$

987,362

Deposits:

Noninterest-bearing demand deposits

190,843

185,201

136,437

137,933

124,670

Savings and interest-bearing demand deposits

424,001

413,025

394,637

382,607

372,404

Time deposits

412,837

408,672

433,393

389,900

396,614

Total deposits

1,027,681

1,006,898

964,467

910,440

893,688

Securities sold under repurchase agreements

1,117

1,035

3,284

6,525

6,323

Federal Home Loan Bank advances

25,000

35,000

45,000

45,000

68,000

Federal Reserve Bank advances

32,637

33,160

—

—

—

Subordinated notes, net of unamortized issuance costs

31,083

31,056

31,029

31,001

6,906

Shareholders' equity

121,429

119,690

127,402

126,185

124,857

Interest income

$

12,070

$

11,974

$

12,218

$

12,997

$

12,765

$

50,418

Interest expense

2,693

3,032

3,596

3,854

3,734

15,085

Net interest income

9,377

8,942

8,622

9,143

9,031

35,333

Provision for loan losses

869

2,027

2,777

311

495

1,182

Noninterest income

2,286

2,194

1,391

1,373

1,200

4,958

Noninterest expense

8,646

17,453

7,308

7,734

7,447

30,402

Income (loss) before income taxes

2,148

(8,344

)

(72

)

2,471

2,289

8,707

Income tax expense (benefit)

655

(217

)

(58

)

469

448

1,649

Net income (loss)

$

1,493

$

(8,127

)

$

(14

)

$

2,002

$

1,841

$

7,058

As of and for the

As of and for the Three Months Ended

Year Ended

September 30,

June 30,

March 31,

December 31,

September 30,

December 31,

(Dollars in thousands, except per share amounts)

2020

2020

2020

2019

2019

2019

Basic earnings (loss) per share

$

0.11

$

(0.62

)

$

—

$

0.15

$

0.14

$

0.54

Diluted earnings (loss) per share

0.11

(0.62

)

—

0.15

0.14

0.54

Book value per share

9.10

8.98

9.55

9.51

9.36

Tangible book value per share (1)

9.04

8.90

8.69

8.64

8.49

Shares outstanding at end of period

13,342,104

13,334,049

13,346,789

13,261,801

13,334,302

Weighted average shares outstanding, basic

13,090,035

13,080,689

13,056,576

13,071,708

13,077,600

13,053,080

Weighted average shares outstanding, diluted

13,137,990

13,080,689

13,056,576

13,145,522

13,132,459

13,111,853

Performance Measures and Other Metrics (tax-equivalent basis):

Yield on average interest-earning assets

4.03

%

4.17

%

4.56

%

4.87

%

4.87

%

4.85

%

Accretion of discounts on acquired loans

$

97

$

93

$

189

$

929

$

357

$

1,922

Cost of funds

0.96

%

1.12

%

1.44

%

1.54

%

1.52

%

1.55

%

Cost of deposits

0.82

%

0.97

%

1.24

%

1.34

%

1.40

%

1.37

%

Net interest spread

2.88

%

2.83

%

2.90

%

3.09

%

3.13

%

3.09

%

Net interest margin (NIM)

3.14

%

3.11

%

3.22

%

3.43

%

3.45

%

3.40

%

Average interest-earnings assets to total average assets

95.6

%

94.1

%

94.4

%

94.2

%

94.0

%

94.0

%

Return (loss) on average assets (annualized)

0.48

%

-2.64

%

0.00

%

0.71

%

0.66

%

0.64

%

Operating return on average assets (annualized) (1)

0.93

%

0.54

%

0.00

%

0.71

%

0.66

%

0.64

%

Return (loss) on average equity (annualized)

4.95

%

-25.40

%

-0.04

%

6.39

%

5.97

%

5.79

%

Operating return (loss) on average equity (annualized) (1)

9.64

%

5.18

%

-0.04

%

6.39

%

5.97

%

5.79

%

Efficiency ratio

74.1

%

156.7

%

73.0

%

73.5

%

72.8

%

75.5

%

Operating efficiency ratio (1)

61.6

%

63.6

%

73.0

%

73.5

%

72.8

%

75.5

%

Average assets

$

1,246,989

$

1,230,249

$

1,143,879

$

1,126,663

$

1,109,986

$

1,107,670

Average interest-earning assets

1,192,670

1,158,248

1,079,351

1,061,227

1,043,243

1,041,622

Average interest-bearing liabilities

925,812

914,832

871,597

860,421

851,392

855,703

Average shareholders' equity

120,570

127,960

126,955

125,285

123,399

121,859

Shareholders' equity to total assets ratio

9.7

%

9.7

%

10.8

%