BLUEFIELD, Va., Oct. 25, 2022 (GLOBE NEWSWIRE) — First Community Bankshares, Inc. (NASDAQ: FCBC) (www.firstcommunitybank.com) (the “Company”) today reported its unaudited results of operations and other financial information for the quarter ended September 30, 2022. The Company reported net income of $13.35 million, or $0.81 per diluted common share, for the quarter ended September 30, 2022. Net income for the nine months ended September 30, 2022, was $34.08 million or $2.05 per diluted common share.
The Company also declared a quarterly cash dividend to common shareholders of twenty-nine cents ($0.29) per common share, an increase of two cents ($0.02), or 7.41%, over the quarterly dividend declared in the same quarter of 2021. The quarterly dividend is payable to common shareholders of record on November 4, 2022, and is expected to be paid on or about November 18, 2022. This marks the 37th consecutive year of regular dividends to common shareholders.
Third Quarter 2022 and Current Highlights
Income Statement
- Net income of $13.35 million for the quarter was an increase of $743 thousand compared to $12.61 million recorded in the same quarter of 2021. The increase is primarily attributable to an increase in net interest income of $4.2 million and the branch sale gains of $1.66 million offset by an increase in the provision for credit losses of $2.08 million and an increase in salaries and employee benefits of $1.44 million compared to 2021.
- On September 16, 2022, the Company completed the sale of First Community Bank’s Emporia, Virginia branch to Benchmark Community Bank. A gain of $1.66 million was realized from the sale.
- When adjusted for non-core and non-recurring items, adjusted earnings have increased from $9.52 million in the first quarter and $11.14 million in the second quarter of 2022.
- Net interest margin for the third quarter was 4.01%, which was a 45 basis point increase from 3.56% reported for third quarter of 2021. The yield on earning assets increased 42 basis points, primarily driven by increased earnings on securities and overnight funds.
- The cost of interest-bearing deposits declined 6 basis points to 0.08%, primarily driven by a decrease in the cost of time deposits and focus on non-maturing deposits. Additionally, non-maturing deposit balances remained strong even after the Emporia branch sale.
- Net interest income increased $4.2 million compared to the same quarter of 2021. Interest income from securities of $1.79 million was an increase of $1.34 million over the third quarter of 2021. Interest on fed funds also increased $1.31 million to $1.53 million for the third quarter as a result of the Federal Open Market Committee’s incremental 300 basis point rate increase in overnight rates throughout 2022 as compared to the overnight rates of 2021. Interest and fees on loans increased $1.29 million from the same quarter of 2021 and is primarily attributable to loan demand and originations.
- The provision for credit losses of $685 thousand for the quarter was an increase of $2.08 million compared to the same quarter of 2021. The increase was attributable to a return to normalized provisions as compared with prior year recoveries of pandemic-related provisioning.
- Despite the significant increase in credit loss provision over 2021, annualized return on average assets was 1.63% for the third quarter and 1.41% for the first nine months of 2022. Annualized return on average common equity was 12.60% for the third quarter and 10.73% for the first nine months of 2022.
- Salaries and employee benefits for the third quarter increased $1.44 million, or 13.48%, over the same quarter in 2021. Salaries and employee benefits for the first nine months increased $3.52 million, or 11.10%, over the first nine months of 2021. During the first quarter of 2022, the Company implemented annualized wage increases of approximately $2.5 million as part of its ongoing strategic initiative to enhance Human Capital Management, which included an increased minimum wage.
Balance Sheet and Asset Quality
- The Company’s loan portfolio increased by $197.16 million, an annualized growth rate of 12.17%, during the first nine months of 2022. Loan demand and originations were strong in all categories, including construction, commercial real estate, residential mortgage, and consumer loans.
- Total deposits sold to Benchmark as part of the Emporia branch sale totaled $61.05 million.
- During the third quarter, the Company repurchased 235,400 of its common shares for $7.38 million. The Company repurchased 650,907 common shares for $19.42 million during the first nine months of 2022.
- Non-performing loans to total loans remained very low at 0.71% of total loans and continues the declining trend experienced over the past four quarters. The Company experienced net charge-offs for the third quarter of 2022 of $1.05 million, or 0.18% of annualized average loans, compared to net charge-offs of $586 thousand, or 0.11% of annualized average loans, for the same period in 2021. Net charge-offs for the nine-month period ended September 30, 2022, were $1.63 million, or 0.10% of annualized average loans, compared to net charge-offs of $1.79 million, or 0.11% of annualized average loans, for the same period in 2021.
- The allowance for credit losses to total loans decreased slightly to 1.24% of total loans.
- Book value per share at September 30, 2022, was $25.33, a slight decrease of $0.01 from year-end 2021.
Non-GAAP Financial Measures
In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures that provide useful information for financial and operational decision making, evaluating trends, and comparing financial results to other financial institutions. The non-GAAP financial measures presented in this news release include “tangible book value per common share,” “return on average tangible common equity,” “adjusted earnings,” “adjusted diluted earnings per share,” “adjusted return on average assets,” “adjusted return on average common equity,” “adjusted return on average tangible common equity,” and certain financial measures presented on a fully taxable equivalent (“FTE”) basis. FTE basis is calculated using the federal statutory income tax rate of 21%. While the Company believes certain non-GAAP financial measures enhance the understanding of its business and performance, they are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions.
About First Community Bankshares, Inc.
First Community Bankshares, Inc., a financial holding company headquartered in Bluefield, Virginia, provides banking products and services through its wholly owned subsidiary First Community Bank. First Community Bank operated 48 branch banking locations in Virginia, West Virginia, North Carolina, and Tennessee as of September 30, 2022. First Community Bank offers wealth management and investment advice and services through its Trust Division and through its wholly owned subsidiary, First Community Wealth Management, which collectively managed and administered $1.19 billion in combined assets as of September 30, 2022. The Company reported consolidated assets of $3.16 billion as of September 30, 2022. The Company’s common stock is listed on the NASDAQ Global Select Market under the trading symbol, “FCBC”. Additional investor information is available on the Company’s website at www.firstcommunitybank.com.
This news release may include forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks detailed from time to time in the Company’s Securities and Exchange Commission reports including, but not limited to, the Annual Report on Form 10-K for the most recent fiscal year end. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | ||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
(Amounts in thousands, except share and per share data) | September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | ||||||||||||||||||||||||
2022 | 2022 | 2022 | 2021 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 26,405 | $ | 25,651 | $ | 24,641 | $ | 25,236 | $ | 25,119 | $ | 76,697 | $ | 77,596 | ||||||||||||||||
Interest on securities | 1,785 | 1,551 | 750 | 362 | 445 | 4,086 | 1,375 | |||||||||||||||||||||||
Interest on deposits in banks | 1,532 | 768 | 248 | 234 | 225 | 2,548 | 507 | |||||||||||||||||||||||
Total interest income | 29,722 | 27,970 | 25,639 | 25,832 | 25,789 | 83,331 | 79,478 | |||||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||||
Interest on deposits | 380 | 422 | 486 | 600 | 642 | 1,288 | 2,235 | |||||||||||||||||||||||
Interest on borrowings | – | 1 | – | – | 1 | 1 | 1 | |||||||||||||||||||||||
Total interest expense | 380 | 423 | 486 | 600 | 643 | 1,289 | 2,236 | |||||||||||||||||||||||
Net interest income | 29,342 | 27,547 | 25,153 | 25,232 | 25,146 | 82,042 | 77,242 | |||||||||||||||||||||||
Provision for (recovery of) credit losses | 685 | 510 | 1,961 | (846 | ) | (1,394 | ) | 3,156 | (7,625 | ) | ||||||||||||||||||||
Net interest income after provision | 28,657 | 27,037 | 23,192 | 26,078 | 26,540 | 78,886 | 84,867 | |||||||||||||||||||||||
Noninterest income | 9,950 | 8,854 | 9,194 | 9,215 | 8,720 | 27,998 | 25,086 | |||||||||||||||||||||||
Noninterest expense | 21,145 | 21,255 | 19,986 | 21,701 | 18,836 | 62,386 | 57,017 | |||||||||||||||||||||||
Income before income taxes | 17,462 | 14,636 | 12,400 | 13,592 | 16,424 | 44,498 | 52,936 | |||||||||||||||||||||||
Income tax expense | 4,111 | 3,423 | 2,885 | 3,037 | 3,816 | 10,419 | 12,323 | |||||||||||||||||||||||
Net income | $ | 13,351 | $ | 11,213 | $ | 9,515 | $ | 10,555 | $ | 12,608 | $ | 34,079 | $ | 40,613 | ||||||||||||||||
Earnings per common share | ||||||||||||||||||||||||||||||
Basic | $ | 0.82 | $ | 0.67 | $ | 0.57 | $ | 0.62 | $ | 0.73 | $ | 2.05 | $ | 2.32 | ||||||||||||||||
Diluted | 0.81 | 0.67 | 0.56 | 0.62 | 0.73 | 2.05 | 2.32 | |||||||||||||||||||||||
Cash dividends per common share | ||||||||||||||||||||||||||||||
Regular | 0.29 | 0.27 | 0.27 | 0.27 | 0.27 | 0.83 | 0.77 | |||||||||||||||||||||||
Weighted average shares outstanding | ||||||||||||||||||||||||||||||
Basic | 16,378,022 | 16,662,817 | 16,817,284 | 16,974,005 | 17,221,244 | 16,617,766 | 17,457,477 | |||||||||||||||||||||||
Diluted | 16,413,202 | 16,682,615 | 16,864,515 | 17,038,980 | 17,279,576 | 16,654,697 | 17,511,900 | |||||||||||||||||||||||
Performance ratios | ||||||||||||||||||||||||||||||
Return on average assets | 1.63 | % | 1.38 | % | 1.20 | % | 1.32 | % | 1.59 | % | 1.41 | % | 1.74 | % | ||||||||||||||||
Return on average common equity | 12.60 | % | 10.61 | % | 8.98 | % | 9.77 | % | 11.65 | % | 10.73 | % | 12.70 | % | ||||||||||||||||
Return on average tangible common equity(1) | 18.51 | % | 15.56 | % | 13.10 | % | 14.28 | % | 17.04 | % | 15.71 | % | 18.63 | % | ||||||||||||||||
(1) | A non-GAAP financial measure defined as net income divided by average stockholders’ equity less average goodwill and other intangible assets | |||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED QUARTERLY NONINTEREST INCOME AND EXPENSE (Unaudited) | ||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | |||||||||||||||||
(Amounts in thousands) | 2022 | 2022 | 2022 | 2021 | 2021 | 2022 | 2021 | |||||||||||||||
Noninterest income | ||||||||||||||||||||||
Wealth management | $ | 932 | $ | 993 | $ | 972 | $ | 940 | $ | 974 | $ | 2,897 | $ | 2,913 | ||||||||
Service charges on deposits | 3,689 | 3,672 | 3,498 | 3,718 | 3,599 | 10,859 | 9,728 | |||||||||||||||
Other service charges and fees | 2,988 | 3,297 | 3,017 | 3,091 | 3,143 | 9,302 | 9,331 | |||||||||||||||
Net FDIC indemnification asset amortization | – | – | – | – | – | – | (1,226 | ) | ||||||||||||||
Gain on divestiture | 1,658 | – | – | – | – | 1,658 | – | |||||||||||||||
Other operating income | 683 | 892 | 1,707 | 1,466 | 1,004 | 3,282 | 4,340 | |||||||||||||||
Total noninterest income | $ | 9,950 | $ | 8,854 | $ | 9,194 | $ | 9,215 | $ | 8,720 | $ | 27,998 | $ | 25,086 | ||||||||
Noninterest expense | ||||||||||||||||||||||
Salaries and employee benefits | $ | 12,081 | $ | 11,518 | $ | 11,671 | $ | 12,493 | $ | 10,646 | $ | 35,270 | $ | 31,746 | ||||||||
Occupancy expense | 1,188 | 1,165 | 1,269 | 1,368 | 1,155 | 3,622 | 3,545 | |||||||||||||||
Furniture and equipment expense | 1,478 | 1,496 | 1,614 | 1,418 | 1,385 | 4,588 | 4,209 | |||||||||||||||
Service fees | 1,635 | 2,563 | 1,503 | 1,946 | 1,530 | 5,701 | 4,378 | |||||||||||||||
Advertising and public relations | 718 | 577 | 540 | 589 | 536 | 1,835 | 1,487 | |||||||||||||||
Professional fees | 208 | 544 | 453 | 455 | 313 | 1,205 | 1,069 | |||||||||||||||
Amortization of intangibles | 365 | 360 | 357 | 364 | 365 | 1,082 | 1,082 | |||||||||||||||
FDIC premiums and assessments | 321 | 257 | 218 | 213 | 216 | 796 | 619 | |||||||||||||||
Divestiture expense | 153 | – | – | – | – | 153 | – | |||||||||||||||
Other operating expense | 2,998 | 2,775 | 2,361 | 2,855 | 2,690 | 8,134 | 8,882 | |||||||||||||||
Total noninterest expense | $ | 21,145 | $ | 21,255 | $ | 19,986 | $ | 21,701 | $ | 18,836 | $ | 62,386 | $ | 57,017 | ||||||||
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EARNINGS (Unaudited) | ||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | |||||||||||||||||||||||||
2022 | 2022 | 2022 | 2021 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||
(Amounts in thousands, except per share data) | ||||||||||||||||||||||||||||||
Net income | $ | 13,351 | $ | 11,213 | $ | 9,515 | $ | 10,555 | $ | 12,608 | $ | 34,079 | $ | 40,613 | ||||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||||
Net (gain) loss on sale of securities | – | – | – | – | – | – | – | |||||||||||||||||||||||
Divestiture expense | 153 | – | – | – | – | 153 | – | |||||||||||||||||||||||
Gain on divestiture | (1,658 | ) | – | – | – | – | (1,658 | ) | ||||||||||||||||||||||
Other items(1) | – | (92 | ) | – | – | – | (92 | ) | – | |||||||||||||||||||||
Total adjustments | (1,505 | ) | (92 | ) | – | – | – | (1,597 | ) | – | ||||||||||||||||||||
Tax effect | (361 | ) | (22 | ) | – | – | – | (383 | ) | – | ||||||||||||||||||||
Adjusted earnings, non-GAAP | $ | 12,207 | $ | 11,143 | $ | 9,515 | $ | 10,555 | $ | 12,608 | $ | 32,865 | $ | 40,613 | ||||||||||||||||
Adjusted diluted earnings per common share, | ||||||||||||||||||||||||||||||
non-GAAP | $ | 0.74 | $ | 0.67 | $ | 0.56 | $ | 0.62 | $ | 0.73 | $ | 1.97 | $ | 2.32 | ||||||||||||||||
Performance ratios, non-GAAP | ||||||||||||||||||||||||||||||
Adjusted return on average assets | 1.49 | % | 1.37 | % | 1.20 | % | 1.32 | % | 1.59 | % | 1.36 | % | 1.74 | % | ||||||||||||||||
Adjusted return on average common equity | 11.52 | % | 10.55 | % | 8.98 | % | 9.77 | % | 11.65 | % | 10.35 | % | 12.70 | % | ||||||||||||||||
Adjusted return on average tangible | ||||||||||||||||||||||||||||||
common equity(2) | 16.92 | % | 15.46 | % | 13.10 | % | 14.28 | % | 17.04 | % | 15.16 | % | 18.63 | % | ||||||||||||||||
(1) | Includes other non-recurring income and expense items | |||||||||||||||||||||||||||||
(2) | A non-GAAP financial measure defined as adjusted earnings divided by average stockholders’ equity less average goodwill and other intangible assets | |||||||||||||||||||||||||||||
AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited) | ||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||
Average | Average Yield/ | Average | Average Yield/ | |||||||||||||||||
(Amounts in thousands) | Balance | Interest(1) | Rate(1) | Balance | Interest(1) | Rate(1) | ||||||||||||||
Assets | ||||||||||||||||||||
Earning assets | ||||||||||||||||||||
Loans(2)(3) | $ | 2,334,596 | $ | 26,474 | 4.50 | % | $ | 2,149,647 | $ | 25,161 | 4.64 | % | ||||||||
Securities available for sale | 301,360 | 1,833 | 2.41 | % | 79,995 | 509 | 2.52 | % | ||||||||||||
Interest-bearing deposits | 275,290 | 1,531 | 2.21 | % | 586,787 | 224 | 0.15 | % | ||||||||||||
Total earning assets | 2,911,246 | 29,838 | 4.07 | % | 2,816,429 | 25,894 | 3.65 | % | ||||||||||||
Other assets | 328,534 | 330,679 | ||||||||||||||||||
Total assets | $ | 3,239,780 | $ | 3,147,108 | ||||||||||||||||
Liabilities and stockholders’ equity | ||||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||||
Demand deposits | $ | 689,376 | $ | 28 | 0.02 | % | $ | 651,237 | $ | 27 | 0.02 | % | ||||||||
Savings deposits | 887,454 | 67 | 0.03 | % | 826,144 | 63 | 0.03 | % | ||||||||||||
Time deposits | 317,294 | 285 | 0.36 | % | 378,895 | 551 | 0.58 | % | ||||||||||||
Total interest-bearing deposits | 1,894,124 | 380 | 0.08 | % | 1,856,276 | 641 | 0.14 | % | ||||||||||||
Borrowings | ||||||||||||||||||||
Retail repurchase agreements | 2,378 | – | N/M | 1,040 | 1 | 0.07 | % | |||||||||||||
Total borrowings | 2,378 | – | N/M | 1,040 | 1 | 0.07 | % | |||||||||||||
Total interest-bearing liabilities | 1,896,502 | 380 | 0.08 | % | 1,857,316 | 642 | 0.14 | % | ||||||||||||
Noninterest-bearing demand deposits | 881,429 | 824,112 | ||||||||||||||||||
Other liabilities | 41,373 | 36,419 | ||||||||||||||||||
Total liabilities | 2,819,304 | 2,717,847 | ||||||||||||||||||
Stockholders’ equity | 420,476 | 429,261 | ||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 3,239,780 | $ | 3,147,108 | ||||||||||||||||
Net interest income, FTE(1) | $ | 29,458 | $ | 25,252 | ||||||||||||||||
Net interest rate spread | 3.99 | % | 3.51 | % | ||||||||||||||||
Net interest margin, FTE(1) | 4.01 | % | 3.56 | % | ||||||||||||||||
(1) | Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%. | |||||||||||||||||||
(2) | Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual. | |||||||||||||||||||
(3) | Interest on loans includes non-cash and accelerated purchase accounting accretion of $487 thousand and $1.01 million for the three months ended September 30, 2022 and 2021, respectively. | |||||||||||||||||||
AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited) | ||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||
Average | Average Yield/ | Average | Average Yield/ | |||||||||||||||||
(Amounts in thousands) | Balance | Interest(1) | Rate(1) | Balance | Interest(1) | Rate(1) | ||||||||||||||
Assets | ||||||||||||||||||||
Earning assets | ||||||||||||||||||||
Loans(2)(3) | $ | 2,269,974 | $ | 76,886 | 4.53 | % | $ | 2,149,556 | $ | 77,722 | 4.83 | % | ||||||||
Securities available for sale | 241,640 | 4,230 | 2.34 | % | 82,563 | 1,590 | 2.57 | % | ||||||||||||
Interest-bearing deposits | 398,326 | 2,549 | 0.86 | % | 555,435 | 508 | 0.12 | % | ||||||||||||
Total earning assets | 2,909,940 | 83,665 | 3.84 | % | 2,787,554 | 79,820 | 3.83 | % | ||||||||||||
Other assets | 329,508 | 331,239 | ||||||||||||||||||
Total assets | $ | 3,239,448 | $ | 3,118,793 | ||||||||||||||||
Liabilities and stockholders’ equity | ||||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||||
Demand deposits | $ | 689,226 | $ | 85 | 0.02 | % | $ | 639,809 | $ | 99 | 0.02 | % | ||||||||
Savings deposits | 888,062 | 200 | 0.03 | % | 807,863 | 217 | 0.04 | % | ||||||||||||
Time deposits | 331,808 | 1,003 | 0.40 | % | 395,465 | 1,918 | 0.65 | % | ||||||||||||
Total interest-bearing deposits | 1,909,096 | 1,288 | 0.09 | % | 1,843,137 | 2,234 | 0.16 | % | ||||||||||||
Borrowings | ||||||||||||||||||||
Retail repurchase agreements | 2,161 | 1 | 0.07 | % | 1,179 | 1 | 0.07 | % | ||||||||||||
Total borrowings | 2,161 | 1 | 0.07 | % | 1,179 | 1 | 0.07 | % | ||||||||||||
Total interest-bearing liabilities | 1,911,257 | 1,289 | 0.09 | % | 1,844,316 | 2,235 | 0.16 | % | ||||||||||||
Noninterest-bearing demand deposits | 864,119 | 809,128 | ||||||||||||||||||
Other liabilities | 39,487 | 37,871 | ||||||||||||||||||
Total liabilities | 2,814,863 | 2,691,315 | ||||||||||||||||||
Stockholders’ equity | 424,585 | 427,478 | ||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 3,239,448 | $ | 3,118,793 | ||||||||||||||||
Net interest income, FTE(1) | $ | 82,376 | $ | 77,585 | ||||||||||||||||
Net interest rate spread | 3.75 | % | 3.67 | % | ||||||||||||||||
Net interest margin, FTE(1) | 3.78 | % | 3.72 | % | ||||||||||||||||
(1) | Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%. | |||||||||||||||||||
(2) | Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual. | |||||||||||||||||||
(3) | Interest on loans includes non-cash and accelerated purchase accounting accretion of $2.22 million and $3.45 million for the nine months ended September 30, 2022 and 2021, respectively. | |||||||||||||||||||
CONDENSED CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited) | ||||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||||
(Amounts in thousands, except per share data) | 2022 | 2022 | 2022 | 2021 | 2021 | |||||||||||||||||
Assets | ||||||||||||||||||||||
Cash and cash equivalents | $ | 229,095 | $ | 398,242 | $ | 457,306 | $ | 677,439 | $ | 635,007 | ||||||||||||
Debt securities available for sale | 299,620 | 287,767 | 268,703 | 76,292 | 77,440 | |||||||||||||||||
Loans held for investment, net of unearned income | 2,362,733 | 2,299,798 | 2,244,296 | 2,165,569 | 2,152,103 | |||||||||||||||||
Allowance for credit losses | (29,388 | ) | (29,749 | ) | (28,981 | ) | (27,858 | ) | (29,877 | ) | ||||||||||||
Loans held for investment, net | 2,333,345 | 2,270,049 | 2,215,315 | 2,137,711 | 2,122,226 | |||||||||||||||||
Premises and equipment, net | 47,891 | 49,752 | 50,912 | 52,284 | 52,842 | |||||||||||||||||
Other real estate owned | 559 | 579 | 848 | 1,015 | 1,240 | |||||||||||||||||
Interest receivable | 8,345 | 8,433 | 8,100 | 7,900 | 8,146 | |||||||||||||||||
Goodwill | 129,565 | 129,565 | 129,565 | 129,565 | 129,565 | |||||||||||||||||
Other intangible assets | 4,541 | 4,905 | 5,266 | 5,622 | 5,987 | |||||||||||||||||
Other assets | 107,838 | 109,085 | 108,112 | 106,691 | 107,258 | |||||||||||||||||
Total assets | $ | 3,160,799 | $ | 3,258,377 | $ | 3,244,127 | $ | 3,194,519 | $ | 3,139,711 | ||||||||||||
Liabilities | ||||||||||||||||||||||
Deposits | ||||||||||||||||||||||
Noninterest-bearing | $ | 878,423 | $ | 877,962 | $ | 860,652 | $ | 842,783 | $ | 820,147 | ||||||||||||
Interest-bearing | 1,831,798 | 1,920,577 | 1,922,292 | 1,886,608 | 1,853,699 | |||||||||||||||||
Total deposits | 2,710,221 | 2,798,539 | 2,782,944 | 2,729,391 | 2,673,846 | |||||||||||||||||
Securities sold under agreements to repurchase | 1,958 | 2,635 | 2,488 | 1,536 | 1,106 | |||||||||||||||||
Interest, taxes, and other liabilities | 36,362 | 39,157 | 34,539 | 35,817 | 37,395 | |||||||||||||||||
Total liabilities | 2,748,541 | 2,840,331 | 2,819,971 | 2,766,744 | 2,712,347 | |||||||||||||||||
Stockholders’ equity | ||||||||||||||||||||||
Common stock | 16,273 | 16,502 | 16,782 | 16,878 | 17,071 | |||||||||||||||||
Additional paid-in capital | 129,914 | 136,705 | 144,088 | 147,619 | 154,086 | |||||||||||||||||
Retained earnings | 285,096 | 276,499 | 269,798 | 264,824 | 258,860 | |||||||||||||||||
Accumulated other comprehensive loss | (19,025 | ) | (11,660 | ) | (6,512 | ) | (1,546 | ) | (2,653 | ) | ||||||||||||
Total stockholders’ equity | 412,258 | 418,046 | 424,156 | 427,775 | 427,364 | |||||||||||||||||
Total liabilities and stockholders’ equity | $ | 3,160,799 | $ | 3,258,377 | $ | 3,244,127 | $ | 3,194,519 | $ | 3,139,711 | ||||||||||||
Shares outstanding at period-end | 16,273,177 | 16,502,144 | 16,781,975 | 16,878,220 | 17,071,052 | |||||||||||||||||
Book value per common share | $ | 25.33 | $ | 25.33 | $ | 25.27 | $ | 25.34 | $ | 25.03 | ||||||||||||
Tangible book value per common share(1) | 17.09 | 17.18 | 17.24 | 17.34 | 17.09 | |||||||||||||||||
(1) | A non-GAAP financial measure defined as stockholders’ equity less goodwill and other intangible assets, divided by shares outstanding | |||||||||||||||||||||
SELECTED CREDIT QUALITY INFORMATION (Unaudited) | |||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
(Amounts in thousands) | 2022 | 2022 | 2022 | 2021 | 2021 | ||||||||||||||
Allowance for Credit Losses | |||||||||||||||||||
Beginning balance | $ | 29,749 | $ | 28,981 | $ | 27,858 | $ | 29,877 | $ | 31,857 | |||||||||
Provision for (recovery of) | |||||||||||||||||||
credit losses charged to operations | 685 | 510 | 1,961 | (846 | ) | (1,394 | ) | ||||||||||||
Charge-offs | (2,158 | ) | (1,469 | ) | (1,302 | ) | (1,887 | ) | (1,255 | ) | |||||||||
Recoveries | 1,112 | 1,727 | 464 | 714 | 669 | ||||||||||||||
Net (charge-offs) recoveries | (1,046 | ) | 258 | (838 | ) | (1,173 | ) | (586 | ) | ||||||||||
Ending balance | $ | 29,388 | $ | 29,749 | $ | 28,981 | $ | 27,858 | $ | 29,877 | |||||||||
Nonperforming Assets | |||||||||||||||||||
Nonaccrual loans | $ | 15,303 | $ | 17,826 | $ | 20,487 | $ | 20,768 | $ | 22,070 | |||||||||
Accruing loans past due 90 days or more | 131 | 131 | – | 87 | 5 | ||||||||||||||
Troubled debt restructurings (“TDRs”)(1) | 1,331 | 515 | 1,141 | 1,367 | 359 | ||||||||||||||
Total nonperforming loans | 16,765 | 18,472 | 21,628 | 22,222 | 22,434 | ||||||||||||||
OREO | 559 | 579 | 848 | 1,015 | 1,240 | ||||||||||||||
Total nonperforming assets | $ | 17,324 | $ | 19,051 | $ | 22,476 | $ | 23,237 | $ | 23,674 | |||||||||
Additional Information | |||||||||||||||||||
Total accruing TDRs(2) | $ | 7,028 | $ | 8,313 | $ | 8,782 | $ | 8,652 | $ | 8,185 | |||||||||
Asset Quality Ratios | |||||||||||||||||||
Nonperforming loans to total loans | 0.71 | % | 0.80 | % | 0.96 | % | 1.03 | % | 1.04 | % | |||||||||
Nonperforming assets to total assets | 0.55 | % | 0.58 | % | 0.69 | % | 0.73 | % | 0.75 | % | |||||||||
Allowance for credit losses to nonperforming loans | 175.29 | % | 161.05 | % | 134.00 | % | 125.36 | % | 133.18 | % | |||||||||
Allowance for credit losses to total loans | 1.24 | % | 1.29 | % | 1.29 | % | 1.29 | % | 1.39 | % | |||||||||
Annualized net charge-offs (recoveries) to average loans | 0.18 | % | -0.05 | % | 0.15 | % | 0.22 | % | 0.11 | % | |||||||||
(1) Accruing TDRs restructured within the past six months or nonperforming | |||||||||||||||||||
(2) Accruing total TDRs | |||||||||||||||||||
FOR MORE INFORMATION, CONTACT: |
David D. Brown |
(276) 326-9000 |
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