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CBB Bancorp, Inc. Reports Third Quarter 2024 Financial Results

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 $5.6 million for the third quarter 2024, or $0.53 per diluted share compared to $5.5 million in the second quarter 2024, or $0.51 per diluted share.

OVERALL RESULTS

Net income for the third quarter 2024 increased due to higher net interest income after provision for credit losses offset by lower noninterest income and higher noninterest expenses.

The return on average assets for the third quarter 2024 was 1.31% compared to 1.31% for the second quarter 2024 and 1.46% for the third quarter 2023. The return on average equity for the third quarter 2024 was 8.91% compared to 9.06% for the second quarter 2024 and 11.66% for the third quarter 2023.

The efficiency ratio for the third quarter 2024 was 56.61% compared to 55.69% for the second quarter 2024 and 52.23% for the third quarter 2023.

James Hong, President and CEO, said, "I am pleased to report that we have delivered another strong quarter, reflecting our unwavering commitment to serving our customers and communities. Our third quarter results demonstrate the resilience and dedication of our entire team. During the quarter, we saw a solid increase in both deposits and loan originations, underscoring the trust our customers place in us. Our strategic initiatives to enhance digital banking services have been met with increased adoption. We continue to prioritize financial health and stability, ensuring that our bank remains a safe and reliable partner for all our stakeholders."

INCOME STATEMENT

Net Interest Income

Net interest income for the third quarter 2024 was $15.5 million, an increase of $112 thousand, or 0.7%, quarter over quarter, but a decrease of $2.5 million, or 14.1% compared to the third quarter 2023.

Net interest income for the nine months ended on September 30, 2024 was $46.6 million, a decrease of $9.2 million or 16.4% compared to the same period last year. The decrease in net interest income was due to periodic sales of SBA loans and higher cost of interest-bearing deposits as maturing time deposits were rolled over into higher interest rate CDs.

Net Interest Margin

The net interest margin for the third quarter 2024 was 3.71% compared to 3.77% in the prior quarter. The decrease in the net interest margin compared to the second quarter was due to higher cost of funds. The cost of funds for the third quarter 2024 increased eight basis points to 3.60% compared to 3.52% in the second quarter and sixty-nine basis points from 2.91% in the third quarter 2023.

Provision for Credit Losses

Provision for credit losses was negative $100 thousand for the third quarter 2024 compared to $200 thousand in the second quarter 2024. No provision for credit losses was recorded in the second quarter 2023.

Noninterest Income

Noninterest income for the third quarter 2024 was $2.2 million compared to $2.3 million for the second quarter 2024, a decrease of $119 thousand, and an increase of $756 thousand compared to $1.5 million for the third quarter 2023.

Noninterest income for the nine months ended September 30, 2024 was $7.1 million, an increase of $1.8 million compared to the same period last year. The increase was due to a combination of higher gain on sale of loans and increased SBA servicing fee income and banking service fees.

Noninterest Expenses

Noninterest expenses for the third quarter 2024 were $10.0 million compared to $9.9 million for the second quarter 2024 and $10.2 million for the third quarter 2023. Noninterest expenses increased $160 thousand quarter over quarter on higher marketing and loan related expenses.

Noninterest expenses for the nine months ended on September 30, 2024 were $29.9 million, a decrease of $0.7 million or 2.3% compared to the same period last year.

Please refer to financial tables in this press release for additional information and trends.

Income Taxes

The Company’s effective tax rate for the third quarter 2024 was 28.4% compared to 28.3% for second quarter 2024 and 28.3% for third quarter 2023.

BALANCE SHEET

Investment Securities

Investment securities were $63.2 million at September 30, 2024, a decrease of $9.8 million or 13.5% from June 30, 2024, and an increase of $1.6 million or 2.6% from September 30, 2023.

Loans Receivable

Loans receivable (including loans held-for-sale) at September 30, 2024 was $1.42 billion, a decrease of $16.8 million or 1.2% from June 30, 2024 and increased $301 thousand from September 30, 2023.

Allowance for Credit Losses and Asset Quality

The Allowance for Credit Losses (“ACL”) at September 30, 2024, was $16.0 million which was 1.30% of loans held-for-investment compared to $16.0 million at June 30, 2024, or 1.31% of loans held-for-investment. At September 30, 2023, ACL was $15.3 million or 1.27% of total loans held-for-investment.

Total Nonperforming assets at September 30, 2024 were $8.6 million compared to $5.8 million at June 30, 2024 and $0.7 million at September 30, 2023. The ACL coverage to nonperforming assets was over 186% at September 30, 2024.

SBA Loans Held-for-Sale

Total SBA loans held-for-sale at September 30, 2024 was $198.0 million compared to $ 209.1 million June 30, 2024, and $219.4 million at September 30, 2023.

The Bank sold approximately $20.2 million in SBA loans with an average premium of 7.5% during the third quarter 2024 compared to the sale of $19.5 million with an average premium of 8.3% during the second quarter 2024. The Bank sold approximately $9.2 million of SBA loans with an average premium of 8.3% during the third quarter 2023.

Deposits

Total deposits were $1.45 billion at September 30, 2024, up $107.2 million or 8.0% from June 30, 2024, and down $101.7 million or 6.6% from September 30, 2023.

Borrowings

The Bank maintains $50.0 million in Federal Home Loan Bank advances and there was no change from the previous quarter.

Capital

Stockholders’ equity was $250.5 million at September 30, 2024, which increased $5.3 million or 2.2%, quarter over quarter. Tangible book value per share at September 30, 2024 was $23.44, an increase of $0.50, or 2.2%, quarter over quarter.

Each of the Company’s and the Bank’s regulatory capital ratios compared to June 30, 2023. The Bank is considered “Well Capitalized” under the applicable regulatory capital rules.

The Common Equity Tier1 Risk-Based Capital Ratios at September 30, 2024, were 19.03% and 18.95% for the Company and the Bank, respectively. Total Risk-Based Capital Ratios were 20.26% and 20.18% for the Company and the Bank, respectively. Bank’s Leverage Ratios were 14.64% and 14.58% 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 September 30, 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 3Q 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 Nine Months Ended
September 30, June 30, $ % September 30, $ % September 30, September 30, $ %

 

2024

 

 

2024

 

Change Change

 

2023

 

Change Change

 

2024

 

 

2023

 

Change Change
 
Interest income

$

28,380

 

$

27,755

 

$

625

 

2.3

%

$

29,450

 

$

(1,070

)

(3.6

%)

$

84,598

 

$

85,362

 

$

(764

)

(0.9

%)

Interest expense

 

12,904

 

 

12,391

 

 

513

 

4.1

%

 

11,442

 

 

1,462

 

12.8

%

 

37,950

 

 

29,540

 

 

8,410

 

28.5

%

Net interest income

 

15,476

 

 

15,364

 

 

112

 

0.7

%

 

18,008

 

 

(2,532

)

(14.1

%)

 

46,648

 

 

55,822

 

 

(9,174

)

(16.4

%)

 
Provision for credit losses

 

(100

)

 

200

 

 

(300

)

(150.0

%)

 

-

 

 

(100

)

100.0

%

 

500

 

 

-

 

 

500

 

100.0

%

Net interest income after provision for credit losses

 

15,576

 

 

15,164

 

 

412

 

2.7

%

 

18,008

 

 

(2,432

)

(13.5

%)

 

46,148

 

 

55,822

 

 

(9,674

)

(17.3

%)

 
Gain on sale of loans

 

991

 

 

1,064

 

 

(73

)

-6.9

%

 

419

 

 

572

 

26.7

%

 

3,544

 

 

2,371

 

 

1,173

 

49.5

%

Gain (loss) on sale of OREO

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

-

 

 

-

 

-

 

SBA servicing fee income, net

 

760

 

 

768

 

 

(8

)

(1.0

%)

 

639

 

 

121

 

18.9

%

 

2,161

 

 

1,733

 

 

428

 

24.7

%

Recovery on impaired servicing liability

 

-

 

 

-

 

 

-

 

-

 

 

-

 

 

-

 

-

 

 

10

 

 

-

 

 

10

 

100.0

%

Service charges and other income

 

465

 

 

503

 

 

(38

)

(7.6

%)

 

402

 

 

63

 

15.7

%

 

1,397

 

 

1,207

 

 

190

 

15.7

%

Noninterest income

 

2,216

 

 

2,335

 

 

(119

)

(5.1

%)

 

1,460

 

 

756

 

51.8

%

 

7,112

 

 

5,311

 

 

1,801

 

33.9

%

 
Salaries and employee benefits

 

5,884

 

 

5,927

 

 

(43

)

(0.7

%)

 

5,569

 

 

315

 

5.7

%

 

17,835

 

 

17,229

 

 

606

 

3.5

%

Occupancy and equipment

 

1,149

 

 

1,114

 

 

35

 

3.1

%

 

1,103

 

 

46

 

4.2

%

 

3,385

 

 

3,349

 

 

36

 

1.1

%

Marketing expense

 

423

 

 

403

 

 

20

 

5.0

%

 

475

 

 

(52

)

(10.9

%)

 

1,228

 

 

1,258

 

 

(30

)

(2.4

%)

Professional expense

 

456

 

 

440

 

 

16

 

3.6

%

 

443

 

 

13

 

2.9

%

 

1,308

 

 

1,333

 

 

(25

)

(1.9

%)

Other expenses

 

2,104

 

 

1,972

 

 

132

 

6.7

%

 

2,579

 

 

(475

)

(18.4

%)

 

6,160

 

 

7,458

 

 

(1,298

)

(17.4

%)

Noninterest expense

 

10,016

 

 

9,856

 

 

160

 

1.6

%

 

10,169

 

 

(153

)

(1.5

%)

 

29,916

 

 

30,627

 

 

(711

)

(2.3

%)

 
Income before income tax provision

 

7,776

 

 

7,643

 

 

133

 

1.7

%

 

9,299

 

 

(1,523

)

(16.4

%)

 

23,344

 

 

30,506

 

 

(7,162

)

(23.5

%)

 
Income tax provision

 

2,207

 

 

2,163

 

 

44

 

2.0

%

 

2,630

 

 

(423

)

(16.1

%)

 

6,623

 

 

8,645

 

 

(2,022

)

(23.4

%)

 
Net income

$

5,569

 

$

5,480

 

$

89

 

1.6

%

$

6,669

 

$

(1,100

)

(16.5

%)

$

16,721

 

$

21,861

 

$

(5,140

)

(23.5

%)

 
Effective tax rate

 

28.38

%

 

28.30

%

 

0.08

%

0.29

%

 

28.28

%

 

0.10

%

0.35

%

 

28.37

%

 

28.34

%

 

0.03

%

0.12

%

 
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

 

 

10,584,198

 

 

3,938

 

0.0

%

Weighted average shares for diluted EPS

 

10,596,039

 

 

10,588,136

 

 

7,903

 

0.1

%

 

10,594,155

 

 

1,884

 

0.0

%

 

10,592,363

 

 

10,595,275

 

 

(2,912

)

(0.0

%)

 
Basic EPS

$

0.53

 

$

0.51

 

$

0.02

 

3.9

%

$

0.63

 

$

(0.10

)

(15.9

%)

$

1.58

 

$

2.07

 

$

(0.49

)

-23.7

%

Diluted EPS

$

0.53

 

$

0.51

 

$

0.02

 

3.9

%

$

0.63

 

$

(0.10

)

(15.9

%)

$

1.58

 

$

2.06

 

$

(0.48

)

(23.3

%)

 
Return on average assets

 

1.31

%

 

1.31

%

 

0.00

%

0.0

%

 

1.46

%

 

(0.15

%)

(10.3

%)

 

1.32

%

 

1.61

%

 

(0.29

%)

(18.0

%)

Return on average equity

 

8.91

%

 

9.06

%

 

(0.15

%)

(1.7

%)

 

11.66

%

 

(2.75

%)

(23.6

%)

 

9.18

%

 

13.27

%

 

(4.09

%)

(30.8

%)

 
Efficiency ratio¹

 

56.61

%

 

55.69

%

 

0.92

%

1.7

%

 

52.23

%

 

4.38

%

8.4

%

 

55.65

%

 

50.10

%

 

5.55

%

11.1

%

Yield on interest-earning assets²

 

6.80

%

 

6.79

%

 

0.01

%

0.2

%

 

6.55

%

 

0.25

%

3.8

%

 

6.79

%

 

6.42

%

 

0.37

%

5.8

%

Cost of funds

 

3.60

%

 

3.52

%

 

0.08

%

2.3

%

 

2.91

%

 

0.69

%

23.7

%

 

3.53

%

 

2.51

%

 

1.02

%

40.6

%

Net interest margin²

 

3.71

%

 

3.77

%

 

(0.06

%)

(1.6

%)

 

4.01

%

 

(0.30

%)

(7.5

%)

 

3.75

%

 

4.20

%

 

(0.45

%)

(10.7

%)

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)
 
September 30, June 30, $ % September 30, $ %

 

2024

 

 

2024

 

Change Change

 

2023

 

Change Change
ASSETS
Cash and due from banks

$

14,892

 

$

11,667

 

$

3,225

 

27.6

%

$

11,188

 

$

3,704

 

33.1

%

Interest-earning deposits at the FRB and other banks

 

241,094

 

 

101,415

 

 

139,679

 

137.7

%

 

335,016

 

 

(93,922

)

(28.0

%)

Investment securities¹

 

63,208

 

 

73,051

 

 

(9,843

)

(13.5

%)

 

61,617

 

 

1,591

 

2.6

%

Loans held-for-sale

 

198,021

 

 

209,144

 

 

(11,123

)

(5.3

%)

 

219,355

 

 

(21,334

)

(9.7

%)

 
Loans held-for-investment

 

1,222,865

 

 

1,228,496

 

 

(5,631

)

(0.5

%)

 

1,201,230

 

 

21,635

 

1.8

%

Less: Allowance for credit losses ("ACL")

 

(15,948

)

 

(16,042

)

 

94

 

0.6

%

 

(15,284

)

 

(664

)

(4.3

%)

Loans held-for-investment, net

 

1,206,917

 

 

1,212,454

 

 

(5,537

)

(0.5

%)

 

1,185,946

 

 

20,971

 

1.8

%

 

Other real estate owned ("OREO")

 

521

 

 

-

 

 

521

 

100.0

%

 

55

 

 

466

 

847.3

%

Restricted stock investments

 

11,011

 

 

11,011

 

 

-

 

-

 

 

11,011

 

 

-

 

-

 

Servicing assets

 

7,192

 

 

7,404

 

 

(212

)

(2.9

%)

 

7,873

 

 

(681

)

(8.6

%)

Goodwill

 

2,185

 

 

2,185

 

 

-

 

-

 

 

2,185

 

 

-

 

-

 

Intangible assets

 

224

 

 

235

 

 

(11

)

(4.7

%)

 

267

 

 

(43

)

(16.1

%)

Other assets

 

25,284

 

 

26,343

 

 

(1,059

)

(4.0

%)

 

24,799

 

 

485

 

2.0

%

Total assets

$

1,770,549

 

$

1,654,909

 

$

115,640

 

7.0

%

$

1,859,312

 

$

(88,763

)

(4.8

%)

 
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing

$

318,807

 

$

281,243

 

$

37,564

 

13.4

%

$

406,033

 

$

(87,226

)

(21.5

%)

Interest-bearing

 

1,128,784

 

 

1,059,146

 

 

69,638

 

6.6

%

 

1,143,257

 

 

(14,473

)

(1.3

%)

Total deposits

 

1,447,591

 

 

1,340,389

 

 

107,202

 

8.0

%

 

1,549,290

 

 

(101,699

)

(6.6

%)

 
FHLB advances and other borrowing

 

50,000

 

 

50,000

 

 

-

 

-

 

 

50,000

 

 

-

 

-

 

Other liabilities

 

22,415

 

 

19,260

 

 

3,155

 

16.4

%

 

31,141

 

 

(8,726

)

(28.0

%)

Total liabilities

 

1,520,006

 

 

1,409,649

 

 

110,357

 

7.8

%

 

1,630,431

 

 

(110,425

)

(6.8

%)

 
Stockholders' Equity

 

250,543

 

 

245,260

 

 

5,283

 

2.2

%

 

228,881

 

 

21,662

 

9.5

%

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$

1,770,549

 

$

1,654,909

 

$

115,640

 

7.0

%

$

1,859,312

 

$

(88,763

)

(4.8

%)

 
CAPITAL RATIOS
Leverage ratio
Company

 

14.64

%

 

14.51

%

 

0.12

%

0.9

%

 

12.53

%

 

2.11

%

16.8

%

Bank

 

14.58

%

 

14.45

%

 

0.13

%

0.9

%

 

12.50

%

 

2.08

%

16.6

%

Common equity tier 1 risk-based capital ratio
Company

 

19.03

%

 

18.36

%

 

0.67

%

3.6

%

 

17.61

%

 

1.41

%

8.0

%

Bank

 

18.95

%

 

18.28

%

 

0.67

%

3.7

%

 

17.58

%

 

1.37

%

7.8

%

Tier 1 risk-based capital ratio
Company

 

19.03

%

 

18.36

%

 

0.67

%

3.6

%

 

17.61

%

 

1.41

%

8.0

%

Bank

 

18.95

%

 

18.28

%

 

0.67

%

3.7

%

 

17.57

%

 

1.38

%

7.8

%

Total risk-based capital ratio
Company

 

20.26

%

 

19.59

%

 

0.67

%

3.4

%

 

18.83

%

 

1.43

%

7.6

%

Bank

 

20.18

%

 

19.50

%

 

0.68

%

3.5

%

 

18.79

%

 

1.39

%

7.4

%

 
Earning Assets

 

1,736,199

 

 

1,623,117

 

 

113,082

 

7.0

%

 

1,828,229

 

$

(92,030

)

(5.0

%)

Outstanding Number of Shares¹

 

10,588,136

 

 

10,588,136

 

 

-

 

0.0

%

 

10,588,136

 

 

-

 

0.0

%

Tangible Common Equity Ratio

 

14.03

%

 

14.70

%

 

(0.67

%)

(4.6

%)

 

12.19

%

 

1.84

%

15.1

%

 
Tangible book value per share

$

23.44

 

$

22.94

 

$

0.50

 

2.2

%

$

21.39

 

$

2.05

 

9.6

%

Loans Held for Investments-to-Deposit ("LHFITD") ratio

 

84.48

%

 

91.65

%

 

(7.17

%)

(7.8

%)

 

77.53

%

 

6.95

%

9.0

%

Net Loan-to-Deposit ("LTD") ratio

 

97.05

%

 

106.06

%

 

(9.01

%)

(8.5

%)

 

90.71

%

 

6.34

%

7.0

%

Nonperforming assets

$

8,558

 

$

5,797

 

$

2,761

 

47.6

%

$

673

 

$

7,885

 

1171.6

%

Nonperforming assets as a % of loans held-for-investment

 

0.70

%

 

0.47

%

 

0.23

%

48.9

%

 

0.06

%

 

0.64

%

1066.7

%

ACL as a % of loans held-for-investment

 

1.30

%

 

1.31

%

 

(0.01

%)

(0.76

%)

 

1.27

%

 

0.03

%

2.4

%

1 Includes AFS and HTM

FIVE-QUARTER STATEMENT OF INCOME (Unaudited) - Table 3

(Dollars in thousands, except per share amounts)

Three Months Ended
September 30, June 30, March 31, December 31, September 30,

 

2024

 

 

2024

 

 

2024

 

 

2023

 

 

2023

 

 
Interest income

$

28,380

 

$

27,755

 

$

28,463

 

$

29,624

 

$

29,450

 

Interest expense

 

12,904

 

 

12,391

 

 

12,655

 

 

12,462

 

 

11,442

 

Net interest income

 

15,476

 

 

15,364

 

 

15,808

 

 

17,162

 

 

18,008

 

 
Provision for credit losses

 

(100

)

 

200

 

 

400

 

 

-

 

 

-

 

Net interest income after provision for credit losses

 

15,576

 

 

15,164

 

 

15,408

 

 

17,162

 

 

18,008

 

 
Gain on sale of loans

 

991

 

 

1,064

 

 

1,489

 

 

838

 

 

419

 

Gain (loss) on sale of OREO

 

-

 

 

-

 

 

(1

)

 

-

 

 

-

 

SBA servicing fee income, net

 

760

 

 

768

 

 

633

 

 

690

 

 

639

 

Recovery on impaired servicing liability

 

-

 

 

-

 

 

10

 

 

-

 

 

-

 

Service charges and other income

 

465

 

 

503

 

 

430

 

 

436

 

 

402

 

Noninterest income

 

2,216

 

 

2,335

 

 

2,561

 

 

1,964

 

 

1,460

 

 
Salaries and employee benefits

 

5,884

 

 

5,927

 

 

6,024

 

 

5,356

 

 

5,569

 

Occupancy and equipment

 

1,149

 

 

1,114

 

 

1,122

 

 

1,128

 

 

1,103

 

Marketing expense

 

423

 

 

403

 

 

402

 

 

250

 

 

475

 

Professional expense

 

456

 

 

440

 

 

412

 

 

360

 

 

443

 

Other expenses

 

2,104

 

 

1,972

 

 

2,084

 

 

2,363

 

 

2,579

 

Noninterest expense

 

10,016

 

 

9,856

 

 

10,044

 

 

9,457

 

 

10,169

 

 
Income before income tax expense

 

7,776

 

 

7,643

 

 

7,925

 

 

9,669

 

 

9,299

 

 
Income tax expense

 

2,207

 

 

2,163

 

 

2,253

 

 

2,670

 

 

2,630

 

 
Net income

$

5,569

 

$

5,480

 

$

5,672

 

$

6,999

 

$

6,669

 

 
Effective tax rate

 

28.4

%

 

28.3

%

 

28.4

%

 

27.6

%

 

28.3

%

 
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

 

 

10,588,136

 

Weighted average shares for diluted EPS

 

10,596,039

 

 

10,588,136

 

 

10,588,688

 

 

10,588,937

 

 

10,594,155

 

 
Basic EPS

$

0.53

 

$

0.51

 

$

0.54

 

$

0.66

 

$

0.63

 

Diluted EPS

$

0.53

 

$

0.51

 

$

0.54

 

$

0.66

 

$

0.63

 

FIVE-QUARTER SALARIES BENEFIT METRICS (Unaudited) - Table 4
(Dollars in thousands)
 
At or for the Three Months Ended
September 30, June 30, March 31, December 31, September 30,

 

2024

 

 

2024

 

 

2023

 

 

2023

 

 

2023

 

 
Salaries and benefits

$

5,884

 

$

5,927

 

$

6,024

 

$

5,356

 

$

5,569

 

FTE at the end of period

 

178

 

 

172

 

 

168

 

 

169

 

 

172

 

Average FTE during the period

 

173

 

 

171

 

 

169

 

 

169

 

 

168

 

Salaries and benefits/average FTE¹

$

135

 

$

139

 

$

143

 

$

126

 

$

131

 

Salaries and benefits/average assets¹

 

1.38

%

 

1.42

%

 

1.41

%

 

1.18

%

 

1.22

%

Noninterest expense/average assets¹

 

2.35

%

 

2.36

%

 

2.35

%

 

2.08

%

 

2.22

%

1 Annualized
FIVE-QUARTER BALANCE SHEET (Unaudited) - Table 5
(Dollars in thousands)
 
September 30, June 30, March 31, December 31, September 30,

 

2024

 

 

2024

 

 

2024

 

 

2023

 

 

2023

 

ASSETS
Cash and due from banks

$

14,892

 

$

11,667

 

$

11,612

 

$

14,282

 

$

11,188

 

Interest-earning deposits at the FRB and other banks

 

241,094

 

 

101,415

 

 

181,366

 

 

233,255

 

 

335,016

 

Investment securities

 

63,208

 

 

73,051

 

 

59,143

 

 

59,883

 

 

61,617

 

Loans held-for-sale

 

198,021

 

 

209,144

 

 

198,167

 

 

218,258

 

 

219,355

 

 
Loans held-for-investment

 

1,222,865

 

 

1,228,496

 

 

1,194,439

 

 

1,204,009

 

 

1,201,230

 

Less: Allowance for credit losses

 

(15,948

)

 

(16,042

)

 

(16,048

)

 

(15,291

)

 

(15,284

)

Loans held-for-investment, net

 

1,206,917

 

 

1,212,454

 

 

1,178,391

 

 

1,188,718

 

 

1,185,946

 

 

Other real estate owned

 

521

 

 

-

 

 

-

 

 

55

 

 

55

 

Restricted stock investments

 

11,011

 

 

11,011

 

 

11,011

 

 

11,011

 

 

11,011

 

Servicing assets

 

7,192

 

 

7,404

 

 

7,560

 

 

7,673

 

 

7,873

 

Goodwill

 

2,185

 

 

2,185

 

 

2,185

 

 

2,185

 

 

2,185

 

Intangible assets

 

224

 

 

235

 

 

245

 

 

255

 

 

267

 

Other assets

 

25,284

 

 

26,343

 

 

23,581

 

 

24,838

 

 

24,799

 

Total assets

$

1,770,549

 

$

1,654,909

 

$

1,673,261

 

$

1,760,413

 

$

1,859,312

 

 
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing

$

318,807

 

$

281,243

 

$

286,766

 

$

305,923

 

$

406,033

 

Interest-bearing

 

1,128,784

 

 

1,059,146

 

 

1,074,198

 

 

1,147,662

 

 

1,143,257

 

Total deposits

 

1,447,591

 

 

1,340,389

 

 

1,360,964

 

 

1,453,585

 

 

1,549,290

 

 
FHLB advances

 

50,000

 

 

50,000

 

 

50,000

 

 

50,000

 

 

50,000

 

Other liabilities

 

22,415

 

 

19,260

 

 

21,727

 

 

21,114

 

 

31,141

 

Total liabilities

 

1,520,006

 

 

1,409,649

 

 

1,432,691

 

 

1,524,699

 

 

1,630,431

 

 
Stockholders' Equity

 

250,543

 

 

245,260

 

 

240,570

 

 

235,714

 

 

228,881

 

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$

1,770,549

 

$

1,654,909

 

$

1,673,261

 

$

1,760,413

 

$

1,859,312

 

FIVE-QUARTER LOANS RECEIVABLE COMPONENTS (Unaudited) - Table 6
(Dollars in thousands)
 
September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023
Balance % Balance % Balance % Balance % Balance %
 
Construction

$

29,789

2.4

%

$

33,918

2.8

%

$

37,216

3.1

%

$

34,886

2.9

%

$

30,924

2.6

%

Commercial real estate

 

1,029,768

84.2

%

 

1,035,425

84.3

%

 

1,005,765

84.2

%

 

1,010,495

83.9

%

 

1,005,735

83.7

%

Commercial and industrial

 

112,588

9.2

%

 

108,742

8.9

%

 

101,784

8.5

%

 

108,123

9.0

%

 

113,374

9.4

%

Home mortgage

 

45,673

3.7

%

 

44,987

3.7

%

 

44,389

3.7

%

 

44,920

3.7

%

 

45,452

3.8

%

Consumer

 

537

0.0

%

 

782

0.1

%

 

668

0.1

%

 

630

0.1

%

 

616

0.1

%

Gross loans held-for-investment

 

1,218,355

99.6

%

 

1,223,854

99.6

%

 

1,189,822

99.6

%

 

1,199,054

99.6

%

 

1,196,101

99.6

%

 
Deferred loan fees/costs, net

 

4,510

0.4

%

 

4,642

0.4

%

 

4,617

0.4

%

 

4,955

0.4

%

 

5,129

0.4

%

Loans held-for-investment

$

1,222,865

100.0

%

$

1,228,496

100.0

%

$

1,194,439

100.0

%

$

1,204,009

100.0

%

$

1,201,230

100.0

%

 
Loans held-for-sale

$

198,021

$

209,144

$

198,167

$

218,258

$

219,355

Total loans receivable

$

1,420,886

$

1,437,640

$

1,392,606

$

1,422,267

$

1,420,585

FIVE-QUARTER SBA LOAN PRODUCTIONS/SALES DATA (Unaudited) - Table 7
(Dollars in thousands)
 
Three Months Ended Nine Months Ended
September 30, June 30, March 31, December 31, September 30, September 30, September 30,

 

2024

 

 

2024

 

 

2024

 

 

2023

 

 

2023

 

 

2024

 

 

2023

 

 
SBA loans held-for-sale at beginning of the quarter/year

$

209,144

 

$

198,167

 

$

218,258

 

$

219,355

 

$

215,083

 

$

218,258

 

$

230,431

 

SBA loans originated/transferred from/to held-for-investment during the quarter/year

 

13,169

 

 

34,366

 

 

14,589

 

 

27,022

 

 

16,260

 

 

62,124

 

 

51,423

 

SBA loans sold during the quarter/year

 

(20,152

)

 

(19,508

)

 

(28,164

)

 

(21,749

)

 

(9,245

)

 

(67,824

)

 

(51,682

)

SBA loans principal paydown/payoff, net of advance

 

(4,140

)

 

(3,881

)

 

(6,516

)

 

(6,370

)

 

(2,743

)

 

(14,537

)

 

(10,817

)

SBA loans held-for-sale at end of the quarter/year

$

198,021

 

$

209,144

 

$

198,167

 

$

218,258

 

$

219,355

 

$

198,021

 

$

219,355

 

 
Gain on sale of SBA loans

$

991

 

$

1,064

 

$

1,489

 

$

838

 

$

419

 

$

3,544

 

$

2,371

 

Premium on sale (weighted average)

 

7.5

%

 

8.3

%

 

6.8

%

 

6.7

%

 

8.3

%

 

8.1

%

 

7.1

%

 
SBA loan production

$

23,227

 

$

45,126

 

$

18,089

 

$

37,821

 

$

24,270

 

$

68,353

 

$

70,002

 

FIVE QUARTER SBA SERVICING ASSETS AND SERVICING FEES (Unaudited) - Table 8
(Dollars in thousands)
 
Three Months Ended Nine Months Ended
September 30, June 30, March 31, December 31, September 30, September 30, September 30,

 

2024

 

 

2024

 

 

2023

 

 

2023

 

 

2023

 

 

2024

 

 

2023

 

 
 
SBA servicing assets @ beginning of the quarter/year

$

7,404

 

$

7,560

 

$

7,673

 

$

7,873

 

$

8,426

 

$

7,673

 

$

9,232

 

 
Newly added SBA servicing assets from SBA loans sold

 

377

 

 

395

 

 

555

 

 

430

 

 

182

 

 

1,327

 

 

988

 

Regular quarterly/annual servicing assets amortization

 

(332

)

 

(335

)

 

(332

)

 

(356

)

 

(371

)

 

(999

)

 

(1,153

)

SBA servicing assets amortized from SBA loans paid off/charged off

 

(257

)

 

(216

)

 

(336

)

 

(274

)

 

(364

)

 

(809

)

 

(1,194

)

 
Subtotal before impairment

 

7,192

 

 

7,404

 

 

7,560

 

 

7,673

 

 

7,873

 

 

7,192

 

 

7,873

 

 
Reversal of valuation allowance on servicing assets

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 
SBA servicing assets @ the end of the quarter/year

$

7,192

 

$

7,404

 

$

7,560

 

$

7,673

 

$

7,873

 

$

7,192

 

$

7,873

 

FIVE-QUARTER DEPOSIT COMPONENTS (Unaudited) - Table 9
(Dollars in thousands)
 
September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023
Balance % Balance % Balance % Balance % Balance %
 
Noninterest-bearing demand

$

318,807

22.0

%

$

281,243

21.0

%

$

286,766

21.1

%

$

305,923

21.1

%

$

406,033

26.2

%

Interest-bearing demand

 

6,590

0.5

%

 

7,901

0.6

%

 

6,709

0.5

%

 

7,504

0.5

%

 

6,395

0.4

%

NOW & MMDA

 

246,157

17.0

%

 

240,951

18.0

%

 

229,642

16.9

%

 

237,548

16.3

%

 

227,283

14.7

%

Savings

 

78,356

5.4

%

 

80,360

6.0

%

 

84,999

6.2

%

 

88,689

6.1

%

 

78,969

5.1

%

TCDs of $250K and under

 

310,134

21.4

%

 

295,109

22.0

%

 

299,944

22.0

%

 

315,920

21.7

%

 

312,704

20.2

%

TCDs of $250K over

 

342,301

23.7

%

 

314,119

23.4

%

 

339,482

25.0

%

 

353,866

24.4

%

 

373,345

24.1

%

Wholesale deposits

 

145,246

10.0

%

 

120,706

9.0

%

 

113,422

8.3

%

 

144,135

9.9

%

 

144,561

9.3

%

Total Deposits

$

1,447,591

100.0

%

$

1,340,389

100.0

%

$

1,360,964

100.0

%

$

1,453,585

100.0

%

$

1,549,290

100.0

%

 
Recap:
Noninterest-bearing demand

$

318,807

22.0

%

$

281,243

21.0

%

$

286,766

21.1

%

$

305,923

21.0

%

$

406,033

26.2

%

Interest-bearing demand

 

6,590

0.5

%

 

7,901

0.6

%

 

6,709

0.5

%

 

7,504

0.5

%

 

6,395

0.4

%

NOW & MMDA

 

222,545

15.4

%

 

217,339

16.2

%

 

229,642

16.9

%

 

237,548

16.3

%

 

227,283

14.7

%

Savings

 

78,356

5.4

%

 

80,360

6.0

%

 

84,999

6.2

%

 

88,689

6.1

%

 

78,969

5.1

%

TCDs of $250K and under

 

310,134

21.4

%

 

295,109

22.0

%

 

299,944

22.0

%

 

315,920

21.7

%

 

312,704

20.2

%

Core Deposits

 

936,432

64.7

%

 

881,952

65.8

%

 

908,060

66.7

%

 

955,584

65.7

%

 

1,031,384

66.6

%

 
TCDs of $250K over

 

342,301

23.6

%

 

314,119

23.4

%

 

339,482

24.9

%

 

353,866

24.3

%

 

373,345

24.1

%

ICS MMDA

 

23,612

1.6

%

 

23,612

1.8

%

Wholesale deposits

 

145,246

10.0

%

 

120,706

9.0

%

 

113,422

8.3

%

 

144,135

9.9

%

 

144,561

9.3

%

Noncore Deposits

 

511,159

35.3

%

 

458,437

34.2

%

 

452,904

33.3

%

 

498,001

34.3

%

 

517,906

33.4

%

Total Deposits

$

1,447,591

100.0

%

$

1,340,389

100.0

%

$

1,360,964

100.0

%

$

1,453,585

100.0

%

$

1,549,290

100.0

%

FIVE-QUARTER SELECTED LOAN AND ASSET QUALITY HIGHLIGHTS (Unaudited) - Table 10
(Dollars in thousands)
 
3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr.

 

2024

 

 

2024

 

 

2024

 

 

2023

 

 

2023

 

Allowance for Credit Losses
Balance at beginning of period

$

16,042

 

$

16,048

 

$

15,291

 

$

15,284

 

$

15,626

 

CECL transition provision

 

-

 

 

-

 

 

-

 

Provision for credit losses

 

-

 

 

200

 

 

743

 

 

-

 

 

-

 

Charge-offs

 

(108

)

 

(257

)

 

(2

)

 

(350

)

Recoveries

 

14

 

 

51

 

 

14

 

 

9

 

 

8

 

Balance at the end of period

$

15,948

 

$

16,042

 

$

16,048

 

$

15,291

 

$

15,284

 

 
Nonperforming Assets:¹
Over 90 days still accruing

$

994

 

$

-

 

$

1,605

 

$

399

 

$

2

 

Nonaccrual loans

 

7,043

 

 

5,797

 

 

2,842

 

 

2,030

 

 

616

 

Total nonperforming loans

 

8,037

 

 

5,797

 

 

4,447

 

 

2,429

 

 

618

 

 
Other real estate owned

$

521

 

 

-

 

 

-

 

 

55

 

 

55

 

Total nonperforming assets

$

8,558

 

$

5,797

 

$

4,447

 

$

2,484

 

$

673

 

 
Classified Assets:¹
Substandard

$

15,980

 

$

12,762

 

$

11,912

 

$

11,063

 

$

10,105

 

Doubtful

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Loss
Total classified loans

$

15,980

 

$

12,762

 

$

11,912

 

$

11,063

 

$

10,105

 

 
Other real estate owned

$

521

 

 

-

 

 

-

 

 

55

 

 

55

 

Total classified assets

$

16,501

 

$

12,762

 

$

11,912

 

$

11,118

 

$

10,160

 

 
Performing modified loans:¹

$

452

 

$

464

 

$

3,811

 

$

3,336

 

$

3,336

 

 
Delinquent Loans:¹
Loans 30-89 days past due

$

4,308

 

$

8,613

 

$

16,907

 

$

5,981

 

$

10,620

 

90 days or more past due and still accruing

 

994

 

 

-

 

 

1,605

 

 

399

 

 

2

 

Nonaccrual

 

7,043

 

 

5,797

 

 

2,842

 

 

2,030

 

 

616

 

Total delinquent loans

$

12,345

 

$

14,410

 

$

21,354

 

$

8,410

 

$

11,238

 

 
Asset Quality Ratios:
Net (recoveries) charge-offs to average loans²

 

0.03

%

 

0.06

%

 

0.00

%

 

0.00

%

 

0.10

%

Nonaccrual loans to loans held-for-investment

 

0.58

%

 

0.47

%

 

0.24

%

 

0.17

%

 

0.05

%

Nonperforming loans to loans held-for-investment

 

0.66

%

 

0.47

%

 

0.37

%

 

0.20

%

 

0.05

%

Nonperforming assets to total assets

 

0.48

%

 

0.35

%

 

0.27

%

 

0.14

%

 

0.04

%

Classified loans to loans held-for-investment

 

1.31

%

 

1.04

%

 

1.00

%

 

0.92

%

 

0.84

%

Classified loans to Tier 1 and ACL

 

6.05

%

 

4.93

%

 

4.69

%

 

4.45

%

 

4.18

%

Classified assets to total assets

 

0.93

%

 

0.77

%

 

0.71

%

 

0.63

%

 

0.55

%

Classified assets to Tier 1 and ACL

 

6.25

%

 

4.93

%

 

4.69

%

 

4.47

%

 

4.20

%

ACL to loans held-for-investment

 

1.30

%

 

1.31

%

 

1.34

%

 

1.27

%

 

1.27

%

ACL to nonaccrual loans

 

226.44

%

 

276.73

%

 

564.67

%

 

753.25

%

 

2481.17

%

ACL to nonperforming loans

 

198.43

%

 

276.73

%

 

360.87

%

 

629.52

%

 

2473.14

%

ACL to nonperforming assets

 

186.35

%

 

276.73

%

 

360.87

%

 

615.58

%

 

2271.03

%

Texas ratio ³

 

3.24

%

 

2.24

%

 

1.75

%

 

1.00

%

 

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 September 30, June 30, March 31, December 31, September 30,
Regulatory BASEL III
Requirement Fully Phased In

 

2024

 

 

2024

 

 

2024

 

 

2023

 

 

2023

 

 
Leverage ratio
Company

N/A

 

N/A

 

 

14.64

%

 

14.51

%

 

13.85

%

 

12.98

%

 

12.53

%

Bank

5.00

%

4.00

%

 

14.58

%

 

14.45

%

 

13.84

%

 

12.96

%

 

12.50

%

Common equity tier 1 risk-based capital ratio
Company

N/A

 

N/A

 

 

19.03

%

 

18.36

%

 

18.67

%

 

18.08

%

 

17.61

%

Bank

6.50

%

7.00

%

 

18.95

%

 

18.28

%

 

18.65

%

 

18.05

%

 

17.58

%

Tier 1 risk-based capital ratio
Company

N/A

 

N/A

 

 

19.03

%

 

18.36

%

 

18.67

%

 

18.08

%

 

17.61

%

Bank

8.00

%

8.50

%

 

18.95

%

 

18.28

%

 

18.65

%

 

18.05

%

 

17.57

%

Total risk-based capital ratio
Company

N/A

 

N/A

 

 

20.26

%

 

19.59

%

 

19.92

%

 

19.30

%

 

18.83

%

Bank

10.00

%

10.50

%

 

20.18

%

 

19.50

%

 

19.91

%

 

19.27

%

 

18.79

%

 
Tangible common equity/total assets

 

14.03

%

 

14.70

%

 

14.25

%

 

13.27

%

 

12.19

%

Tangible common equity per share

$

23.44

 

$

22.94

 

$

22.49

 

$

22.03

 

$

21.39

 

FIVE-QUARTER MARGIN ANALYSIS (Unaudited) -Table 12
(Dollars in thousands)
 
Three Months Ended
September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 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 Checked
INTEREST-EARNING ASSETS
Loans Receivable¹

$

1,427,123

 

$

25,357

7.07

%

$

1,418,458

 

$

24,887

7.06

%

$

1,415,924

 

$

24,906

7.07

%

$

1,410,971

 

$

24,926

7.01

%

$

1,417,148

 

$

24,734

6.92

%

Investment securities ²

 

68,198

 

 

734

4.28

%

 

70,052

 

 

723

4.15

%

 

59,554

 

 

575

3.88

%

 

60,094

 

 

563

3.72

%

 

64,587

 

 

577

3.54

%

Interest-earning deposits at the FRB and other banks

 

158,127

 

 

2,139

5.38

%

 

146,956

 

 

1,995

5.46

%

 

207,155

 

 

2,817

5.47

%

 

288,769

 

 

3,973

5.46

%

 

293,081

 

 

3,994

5.41

%

Other earning assets

 

11,011

 

 

200

7.23

%

 

11,011

 

 

200

7.31

%

 

11,011

 

 

214

7.82

%

 

11,011

 

 

212

7.64

%

 

11,011

 

 

196

7.06

%

Total interest-earning assets ²

 

1,664,459

 

 

28,430

6.80

%

 

1,646,477

 

 

27,805

6.79

%

 

1,693,644

 

 

28,512

6.77

%

 

1,770,845

 

 

29,674

6.65

%

 

1,785,827

 

 

29,501

6.55

%

 
NONINTEREST-EARNING ASSETS
Cash and due from banks

 

12,527

 

 

12,907

 

 

12,172

 

 

12,567

 

 

13,045

 

Other noninterest-earning assets

 

34,395

 

 

33,263

 

 

31,967

 

 

32,985

 

 

33,331

 

Total noninterest-earning assets

 

46,922

 

 

46,170

 

 

44,139

 

 

45,552

 

 

46,376

 

 
Less: Allowance for credit losses

 

(16,024

)

 

(16,058

)

 

(15,322

)

 

(15,291

)

 

(15,622

)

 
TOTAL ASSETS

$

1,695,357

 

$

1,676,589

 

$

1,722,461

 

$

1,801,106

 

$

1,816,581

 

 
INTEREST-BEARING DEPOSITS
Interest-bearing demand

$

11,007

 

$

6

0.22

%

$

11,864

 

$

6

0.20

%

$

12,680

 

$

6

0.19

%

$

12,657

 

$

7

0.22

%

$

12,347

 

$

6

0.19

%

Money market

 

236,834

 

 

2,555

4.29

%

 

230,261

 

 

2,272

3.97

%

 

229,441

 

 

2,285

4.01

%

 

222,289

 

 

2,158

3.85

%

 

211,152

 

 

1,907

3.58

%

Savings

 

79,289

 

 

689

3.46

%

 

82,215

 

 

700

3.42

%

 

84,854

 

 

724

3.43

%

 

82,403

 

 

664

3.20

%

 

70,579

 

 

494

2.78

%

Time deposits

 

767,607

 

 

9,536

4.94

%

 

759,954

 

 

9,296

4.92

%

 

801,122

 

 

9,523

4.78

%

 

824,900

 

 

9,515

4.58

%

 

820,335

 

 

8,916

4.31

%

Total interest-bearing deposits

 

1,094,737

 

 

12,786

4.65

%

 

1,084,294

 

 

12,274

4.55

%

 

1,128,097

 

 

12,538

4.47

%

 

1,142,249

 

 

12,344

4.29

%

 

1,114,413

 

 

11,323

4.03

%

 
Borrowings

 

50,000

 

 

118

0.94

%

 

50,013

 

 

117

0.94

%

 

50,000

 

 

117

0.94

%

 

50,001

 

 

118

0.94

%

 

50,001

 

 

119

0.94

%

Total interest-bearing liabilities

 

1,144,737

 

 

12,904

4.48

%

 

1,134,307

 

 

12,391

4.39

%

 

1,178,097

 

 

12,655

4.32

%

 

1,192,250

 

 

12,462

4.15

%

 

1,164,414

 

 

11,442

3.90

%

 
Noninterest-bearing deposits

 

280,670

 

 

279,765

 

 

284,867

 

 

350,656

 

 

397,791

 

Other liabilities

 

21,376

 

 

19,287

 

 

21,112

 

 

25,602

 

 

27,519

 

 
Stockholders' equity

 

248,574

 

 

243,230

 

 

238,385

 

 

232,598

 

 

226,857

 

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$

1,695,357

 

$

1,676,589

 

$

1,722,461

 

$

1,801,106

 

$

1,816,581

 

 
Net interest income²

$

15,526

$

15,414

$

15,857

$

17,212

$

18,059

 
Net interest spread

2.32

%

2.40

%

2.45

%

2.50

%

2.65

%

 
Effect of noninterest-bearing sources

1.39

%

1.37

%

1.32

%

1.36

%

1.36

%

 
Net interest margin²

3.71

%

3.77

%

3.77

%

3.86

%

4.01

%

 
 
Cost of deposits

$

1,375,407

 

$

12,786

3.70

%

$

1,364,059

 

$

12,274

3.62

%

$

1,412,964

 

$

12,538

3.57

%

$

1,492,905

 

$

12,344

3.28

%

$

1,512,204

 

$

11,323

2.97

%

 
Cost of funds

$

1,425,407

 

$

12,904

3.60

%

$

1,414,072

 

$

12,391

3.52

%

$

1,462,964

 

$

12,655

3.48

%

$

1,542,906

 

$

12,462

3.20

%

$

1,562,205

 

$

11,442

2.91

%

1 Loan held-for-investment, plus loans held-for-sale
2 Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate

FIVE-QUARTER COMPONENTS OF YIELD ON LOANS (Unaudited) - Table 13

(Dollars in thousands)

 

Three Months Ended
September 30,

2024
June 30,

2024
March 31,

2024
December 31,

2023
September 30,

2023
Amount Yield Amount Yield Amount Yield Amount Yield Amount Yield
 
Contractual yield

$

24,544

 

6.84

%

$

24,271

 

6.88

%

$

24,138

 

6.86

%

$

24,235

 

6.81

%

$

23,932

 

6.70

%

SBA discount accretion

 

806

 

0.23

%

 

736

 

0.21

%

 

926

 

0.26

%

 

845

 

0.24

%

 

921

 

0.25

%

Prepayment penalties and late fees

 

184

 

0.05

%

 

36

 

0.01

%

 

67

 

0.01

%

 

40

 

0.01

%

 

18

 

0.01

%

Amortization of net deferred costs

 

(177

)

-0.05

%

 

(156

)

-0.04

%

 

(225

)

-0.06

%

 

(194

)

-0.05

%

 

(137

)

-0.04

%

As reported yield on loans

$

25,357

 

7.07

%

$

24,887

 

7.06

%

$

24,906

 

7.07

%

$

24,926

 

7.01

%

$

24,734

 

6.92

%

MARGIN ANALYSIS (Unaudited) - Table 14
(Dollars in thousands)
 
Six Months Ended
September 30, 2024 September 30,2023
Avg Balance Interest Yield Avg Balance Interest Yield
Number of Days in the Period
INTEREST-EARNING ASSETS
Loans Receivable ¹

$

1,420,526

 

$

75,150

7.07

%

$

1,454,301

 

$

73,774

6.78

%

Investment securities ²

 

65,943

 

 

2,032

4.12

%

 

67,543

 

 

1,749

3.46

%

Interest-earning deposits at the FRB and other banks

 

170,700

 

 

6,951

5.44

%

 

247,712

 

 

9,468

5.11

%

Other earning assets

 

11,011

 

 

614

7.45

%

 

10,655

 

 

523

6.56

%

Total interest-earning assets ²

 

1,668,180

 

 

84,747

6.79

%

 

1,780,211

 

 

85,514

6.42

%

 
NONINTEREST-EARNING ASSETS
Cash and due from banks

 

12,535

 

 

13,362

 

Other noninterest-earning assets

 

32,885

 

 

34,634

 

Total noninterest-earning assets

 

45,420

 

 

47,996

 

 
Less: Allowance for credit losses

 

(15,802

)

 

(15,601

)

 
TOTAL ASSETS

$

1,697,798

 

$

1,812,606

 

 
INTEREST-BEARING DEPOSITS
Interest-bearing demand

$

11,848

 

$

18

0.20

%

$

14,943

 

$

22

0.20

%

Money market

 

232,195

 

 

7,112

4.09

%

 

211,887

 

 

4,789

3.02

%

Savings

 

82,109

 

 

2,113

3.44

%

 

63,369

 

 

983

2.07

%

Time deposits

 

776,196

 

 

28,355

4.88

%

 

818,953

 

 

23,394

3.82

%

Total interest-bearing deposits

 

1,102,348

 

 

37,598

4.56

%

 

1,109,152

 

 

29,188

3.52

%

 
Borrowings

 

50,004

 

 

352

0.94

%

 

50,000

 

 

352

0.94

%

Total interest-bearing liabilities

 

1,152,352

 

 

37,950

4.40

%

 

1,159,152

 

 

29,540

3.41

%

 
Noninterest-bearing deposits

 

281,763

 

 

411,370

 

Other liabilities

 

20,268

 

 

21,808

 

 
Stockholders' equity

 

243,415

 

 

220,276

 

 
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$

1,697,798

 

$

1,812,606

 

 
Net interest income²

$

46,797

$

55,974

 
Net interest spread

2.39

%

3.01

%

 
Effect of noninterest-bearing sources

1.36

%

1.19

%

 
Net interest margin²

3.75

%

4.20

%

 
 
Cost of deposits

$

1,384,111

 

$

37,598

3.63

%

$

1,520,522

 

$

29,188

2.57

%

 
Cost of funds

$

1,434,115

 

$

37,950

3.53

%

$

1,570,522

 

$

29,540

2.51

%

1 Loan held-for-investment, plus loans held-for-sale
2 Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate
COMPONENTS OF YIELD ON LOANS (Unaudited) - Table 15
(Dollars in thousands)
 
Nine Months Ended
September 30, 2024 September 30, 2023
Amount Yield Amount Yield
 
Contractual yield

$

72,953

 

6.86

%

$

71,342

 

6.56

%

SBA discount accretion

 

2,468

 

0.23

%

 

2,982

 

0.27

%

Prepayment penalties and late fees

 

287

 

0.03

%

 

108

 

0.01

%

Amortization of net deferred costs

 

(558

)

-0.05

%

 

(658

)

-0.06

%

As reported yield on loans

$

75,150

 

7.07

%

$

73,774

 

6.78

%

 

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