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8-K - FORM 8-K - CIVISTA BANCSHARES, INC.d22767d8k.htm

Exhibit 99.1

 

 

LOGO

Civista Bancshares, Inc. Announces Strong Second Quarter 2015 Earnings

Sandusky, Ohio, July 24, 2015 – Civista Bancshares, Inc (NASDAQ:CIVB) PRNewswire (“Civista”) reported net income attributable to common shares of $2.7 million, or $0.29 per diluted share, for the second quarter of 2015, compared with $1.8 million, or $0.21 per diluted share, for the prior year period. For the six-month period ended June 30, 2015, Civista reported net income available to common shareholders of $5.5 million or $0.58 per diluted share, compared to $3.9 million, or $0.43 per diluted share, in the same period of 2014.

“We have posted strong results in the second quarter, which has continued on with the momentum we generated in 2014 and the first quarter of 2015. We ended the quarter with $1 billion in loans for the first time in our organization’s history. We have fully integrated the acquisition of TCNB Financial Corp. and had a full quarter with the acquired locations as part of the Civista family. We have already begun to see improvement in net income as a result.” said James O. Miller, Chairman, President and CEO of Civista.

Results of Operations:

Net interest income for the second quarter of 2015 increased $1.7 million, or 16.1%, from the prior year’s second quarter and for the six months ended June 30 increased $2.4 million, or 11.7%, when compared to the same period of 2014. Tax equivalent net interest margin was 3.96% for the second quarter and 3.81% for the six months ended June 30, 2015. The increase in net interest income for the quarter and six months ended June 30, 2015 was due both to an increase in average loans outstanding as well as a decrease in cost of funds. The average balance of interest-bearing deposits relating to tax refund processing was approximately $73 million for 2015. Removing the impact of Civista’s tax refund processing, the net interest margin would have been 24 basis points higher for the first six months of 2015. Mr. Miller continued, “Due to the cash held as a result of the tax refund processing program we see a decrease in the net interest margin during the first quarter, and gradual improvement as the year progresses. Our second quarter net interest margin is much more reflective of our core net interest margin.”


Summary Average Balance Sheet

(Tax-equivalent basis / dollars in thousands)

 

     Six months ended June 30,  
     2015     2014  
     Average
balance
     Interest      Yield /
rate
    Average
balance
     Interest      Yield /
rate
 

Assets

                

Loans

   $ 959,474       $ 21,516         4.53   $ 857,765       $ 19,632         4.62

Securities

     211,548         2,893         3.50     216,999         2,920         3.32

Interest-bearing deposits

     79,794         94         0.24     96,719         128         0.26
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest earning assets

$ 1,250,816    $ 24,503      4.08 $ 1,171,483    $ 22,680      4.02

Liabilities

Int-bearing demand and savings

$ 540,336    $ 207      0.08 $ 499,948    $ 185      0.08

Time deposits

  228,846      868      0.76   230,419      1,003      0.88

FHLB advances and other borrowings

  78,351      597      1.54   87,359      1,060      2.44
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-bearing liabilities

$ 847,533    $ 1,672      0.40 $ 817,726    $ 2,248      0.55

Noninterest-bearing deposits

$ 379,786    $ 335,492   

Net interet income and interest rate spread

$ 22,831      3.68 $ 20,432      3.47

Net interest margin

  3.81   3.63

Summary Average Balance Sheet

(Tax-equivalent basis / dollars in thousands)

 

     Three months ended June 30,  
     2015     2014  
     Average
balance
     Interest      Yield /
rate
    Average
balance
     Interest      Yield /
rate
 

Assets

                

Loans

   $ 991,487       $ 11,270         4.56   $ 861,842       $ 9,850         4.59

Securities

     211,553         1,436         3.45     212,909         1,473         3.41

Interest-bearing deposits

     43,691         34         0.31     57,500         42         0.29
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest earning assets

$ 1,246,731    $ 12,740      4.23 $ 1,132,251    $ 11,365      4.15

Liabilities

Int-bearing demand and savings

$ 555,144    $ 109      0.08 $ 505,828    $ 95      0.08

Time deposits

  233,047      424      0.73   225,182      478      0.85

FHLB advances and other borrowings

  72,687      291      1.60   83,666      526      2.52
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-bearing liabilities

$ 860,878    $ 824      0.38 $ 814,676    $ 1,099      0.54

Noninterest-bearing deposits

$ 345,241    $ 278,266   

Net interet income and interest rate spread

$ 11,916      3.85 $ 10,266      3.61

Net interest margin

  3.96   3.76


The provision for loan losses for the second quarter and six months ended June 30, 2015 decreased $350 thousand, or 46.7%, and $700 thousand, or 46.7%, compared to the three and six-month periods ended June 30, 2014, respectively. Net charge-offs totaled $361 thousand for the first six months of 2015. The decrease in provision for loan losses in the first half of 2015 is primarily related to improved asset quality.

During the quarter, noninterest income totaled $3.7 million, an increase of $272 thousand, or 8.0%, compared to the prior year’s second quarter. Year-to-date noninterest income increased $49 thousand, or 0.8%, when compared to the first six months of 2014.

 

Noninterest income                            
(dollars in thousands)    Three months ended
June 30,
     Six months ended
June 30,
 
     2015      2014      2015      2014  

Service charges

   $ 1,170       $ 1,064       $ 2,225       $ 2,074   

Net gain on sale of securities

     —           107         —           112   

Net gain on sale of loans

     415         128         619         231   

ATM fees

     515         477         964         906   

Trust fees

     734         786         1,501         1,574   

Tax refund processing fees

     400         438         2,000         2,315   

Other

     418         380         744         792   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total noninterest income

$ 3,652    $ 3,380    $ 8,053    $ 8,004   
  

 

 

    

 

 

    

 

 

    

 

 

 

Service charge income increased in both the three and six-month periods, primarily due to an increase in business service charges, as well as service charge fees instituted in our Dayton market since the acquisition of TCNB Financial Corp (“TCNB”). Gain on sale of loans increased $287 thousand and $388 thousand in the three and six-month periods, respectfully due to additional volume of loans sold as well as an increase in the premium on loans sold. Tax refund processing fees were down $38 thousand, or 8.7% for the second quarter of 2015 compared to the second quarter of 2014 and down $315 thousand, or 13.6% when compared to the six months of 2014, due to a change in the fee structure for 2015.

Mr. Miller continued, “Our mortgage banking operation had a very successful second quarter. We have originated and sold $14.3 million more mortgage loans in the first half of 2015 than we did in the first half of 2014. Our pipeline going forward continues to look strong.”

During the quarter, noninterest expense totaled $10.9 million, an increase of $954 thousand, or 9.6%, compared to the prior year’s second quarter. Year-to-date noninterest expense increased $1.1 million, or 5.5%, when compared to the six months of 2014.


Noninterest expense                            
(dollars in thousands)    Three months ended
June 30,
     Six months ended
June 30,
 
     2015      2014      2015      2014  

Salaries, Wages and benefits

   $ 5,809       $ 5,281       $ 11,708       $ 11,008   

Net occupancy and equipment

     980         934         1,967         1,965   

Contracted data processing

     545         247         993         591   

Professional services

     663         403         1,119         794   

Amortization of intangible assets

     192         201         334         403   

Marketing

     308         402         544         794   

Other

     2,436         2,511         4,872         4,853   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total noninterest expense

   $ 10,933       $ 9,979       $ 21,537       $ 20,408   
  

 

 

    

 

 

    

 

 

    

 

 

 

Salaries, wages and benefits expense increased $528 thousand for the second quarter and $700 thousand for the six month period ending June 30, 2015. The increase in salaries, wages and benefits expense was due to normal merit increases, the addition of TCNB employees, as well as a change to our 401k match expense. On January 1, 2015, the 401k plan was modified to a safe harbor plan which increased the mandatory match. Contracted data processing and professional fees increased for both the three and six-month periods ended June 30, 2015. These increases were primarily due to expenses related to the acquisition of TCNB.

Balance Sheet

Total assets increased $104.0 million, or 8.6%, from December 31, 2014 to June 30, 2015. This was due primarily to the acquisition of TCNB, which closed on March 6, 2015. Total assets of TCNB prior to the merger were $97.4 million, including $76.8 million in loans.

Total Loans increased $88.1 million or 9.6% from December 31, 2014 to June 30, 2015. The increase in total loans is primarily due to the acquisition of TCNB which added $76.8 million in loans as well as $11.3 million of net loan originations.

 

End of period loan balances              
(dollars in thousands)              
     June 30,
2015
     December 31,
2014
 

Commercial and Agriculture

   $ 128,972       $ 114,186   

Commercial Real Estate - Owner Occupied

     169,600         143,014   

Commercial Real Estate - Non-owner Occupied

     331,830         308,666   

Residential Real Estate

     282,612         268,510   

Real Estate Construction

     68,734         65,452   

Consumer and Other

     21,169         15,029   
  

 

 

    

 

 

 

Total Loans

   $ 1,002,917       $ 914,857   
  

 

 

    

 

 

 


Total deposits increased $106.9 million, or 11.0%, from December 31, 2014 to June 30, 2015. The increase in deposits was primarily due to the acquisition of TCNB, which included $86.9 million in deposits.

 

End of period deposit balances              
(dollars in thousands)              
     June 30,
2015
     December 31,
2014
 

Noninterest-bearing demand

   $ 296,762       $ 250,701   

Interest-bearing demand

     193,027         179,388   

Savings and money market

     352,457         318,858   

Time deposits

     233,560         219,971   
  

 

 

    

 

 

 

Total Deposits

$ 1,075,806    $ 968,918   
  

 

 

    

 

 

 

Total shareholder’s equity increased $4.1 million, or 3.5%, from December 31, 2014 to June 30, 2015 due to increased retained earnings of $4.7 million and a decrease in Accumulated Other Comprehensive Income of $723 thousand.

Asset Quality

Nonperforming assets at June 30, 2015 were $17.0 million, a $2.0 million decrease from December 31, 2014, and a $5.9 million decrease compared to June 30, 2014.

 

Non-performing Assets                     
(dollars in thousands)                     
     June 30,
2015
     December 31,
2014
     June 30,
2014
 

Non-accrual loans

   $ 12,920       $ 13,558       $ 17,612   

Restructured loans

     3,642         4,928         5,045   
  

 

 

    

 

 

    

 

 

 

Total non-performing loans

  16,562      18,486      22,657   

Other Real Estate Owned

  474      560      282   
  

 

 

    

 

 

    

 

 

 

Total non-performing assets

$ 17,036    $ 19,046    $ 22,939   
  

 

 

    

 

 

    

 

 

 

Mr. Miller continued, “We have continued the momentum we built in 2014 and the first quarter of 2015 and have had a very successful second quarter of 2015. Earnings and asset quality continue to improve, the acquisition of TCNB is fully integrated and we crossed the $1 billion mark in loans. We are optimistic on the prospects for maintaining that momentum for the remainder of 2015.”

Civista Bancshares, Inc. is a $1.3 billion financial holding company headquartered in Sandusky, Ohio. The Company’s banking subsidiary, Civista Bank, operates 28 locations in North Central, West Central and Southwestern Ohio.

Civista Bancshares, Inc. may be accessed at www.civb.com. The Company’s common shares are traded on the NASDAQ Capital Market under the symbol “CIVB”. The Company’s depositary


shares, each representing a 1/40th ownership interest in a Series B Preferred Share, are traded on the NASDAQ Capital Market under the symbol “CIVBP”.

This press release may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of Civista. For these statements, Civista claims the protections of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Civista, including the information in the filings we make with the Securities and Exchange Commission. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include risk factors relating to the banking industry and the other factors detailed from time to time in Civista’ reports filed with the Securities and Exchange Commission, including those described in “Item 1A Risk Factors” of Part I of Civista’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. Undue reliance should not be placed on the forward-looking statements, which speak only as of the date hereof. Civista does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

For additional information, contact:

James O. Miller

Chairman, President and CEO

Civista Bancshares, Inc

888-645-4121


Civista Bancshares

Financial Highlights

(dollars in thousands, except share amounts)

Consolidated Condensed Statement of Income

 

     Three Months Ended     Six Months Ended  
     June 30,     June 30,  
     (unaudited)     (unaudited)  
     2015     2014     2015     2014  

Interest income

     12,740        11,365        24,503        22,680   

Interest expense

     824        1,099        1,672        2,248   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income

     11,916        10,266        22,831        20,432   

Provision for loan losses

     400        750        800        1,500   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income after provision

     11,516        9,516        22,031        18,932   

Noninterest income

     3,652        3,380        8,053        8,004   

Noninterest expense

     10,933        9,979        21,537        20,408   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before taxes

     4,235        2,917        8,547        6,528   

Income tax expense

     1,113        677        2,255        1,577   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     3,122        2,240        6,292        4,951   

Preferred stock dividends

     391        406        795        1,061   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income available to common shareholders

     2,731        1,834        5,497        3,890   

Dividends per common share

   $ 0.05      $ 0.05      $ 0.10      $ 0.09   

Earnings per common share,

        

basic

   $ 0.35      $ 0.24      $ 0.71      $ 0.50   

diluted

   $ 0.29      $ 0.21      $ 0.58      $ 0.43   

Average shares outstanding,

        

basic

     7,825,176        7,707,917        7,790,862        7,707,917   

diluted

     10,904,841        10,904,848        10,904,842        10,904,848   

Selected financial ratios:

        

Return on average assets

     0.94     0.74     0.93     0.78

Return on average equity

     10.50     8.18     10.74     8.84

Dividend payout ratio

     12.53     17.21     11.14     14.01

Net interest margin (tax equivalent)

     3.96     3.76     3.81     3.63


Selected Balance Sheet Items

 

     June 30,
2015
    December 31,
2014
 
     (unaudited)        

Cash and due from financial institutions

   $ 35,092      $ 29,858   

Investment securities

     197,429        197,905   

Loans held for sale

     4,034        2,410   

Loans

     1,002,917        914,857   

Less allowance for loan losses

     14,707        14,268   
  

 

 

   

 

 

 

Net loans

  988,210      900,589   

Other securities

  13,261      12,586   

Fixed assets

  16,308      14,400   

Goodwill and other intangibles

  29,608      23,745   

Bank owned life insurance

  19,870      19,637   

Other assets

  13,460      12,061   
  

 

 

   

 

 

 

Total assets

  1,317,272      1,213,191   
  

 

 

   

 

 

 

Total deposits

  1,075,806      968,918   

Federal Home Loan Bank advances

  55,300      65,200   

Securities sold under agreements to repurchase

  17,460      21,613   

Subordinated debentures

  29,427      29,427   

Accrued expenses and other liabilities

  19,257      12,124   

Total shareholders’ equity

  120,022      115,909   
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

  1,317,272      1,213,191   
  

 

 

   

 

 

 

Shares outstanding at period end

  7,826,595      7,707,917   

Book value per share

$ 12.49    $ 12.04   

Tangible book value per share

  8.71      8.96   

Equity to asset ratio

  9.11   9.55

Selected asset quality ratios:

Allowance for loan losses to total loans

  1.47   1.56

Non-performing assets to total assets

  1.29   1.57

Allowance for loan losses to non-performing loans

  88.80   77.18

Non-performing asset analysis

Nonaccrual loans

$ 12,920    $ 13,558   

Troubled debt restructurings

  3,642      4,928   

Other real estate owned

  474      560   
  

 

 

   

 

 

 

Total

$ 17,036    $ 19,046   
  

 

 

   

 

 

 


Average Balance Analysis

(Unaudited - Dollars in thousands except share data)

 

    Six Months Ended June 30,  
    2015     2014  
    Average
balance
    Interest     Yield/
rate *
    Average
balance
    Interest     Yield/
rate *
 

Assets:

           

Interest-earning assets:

           

Loans

  $ 959,474      $ 21,516        4.53   $ 857,765      $ 19,632        4.62

Taxable securities

    141,420        1,629        2.37     155,487        1,765        2.31

Non-taxable securities

    70,128        1,264        5.78     61,512        1,155        5.87

Interest-bearing deposits in other banks

    79,794        94        0.24     96,719        128        0.27
 

 

 

   

 

 

     

 

 

   

 

 

   

Total interest-earning assets

  $ 1,250,816        24,503        4.08   $ 1,171,483        22,680        4.02
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Noninterest-earning assets:

           

Cash and due from financial institutions

    46,515            50,117       

Premises and equipment, net

    15,537            16,638       

Accrued interest receivable

    4,225            4,112       

Intangible assets

    27,513            23,841       

Other assets

    9,877            8,554       

Bank owned life insurance

    19,737            19,255       

Less allowance for loan losses

    (14,520         (16,479    
 

 

 

       

 

 

     

Total Assets

  $ 1,359,700          $ 1,277,521       
 

 

 

       

 

 

     

Liabilities and Shareholders Equity:

           

Interest-bearing liabilities:

           

Demand and savings

  $ 540,336      $ 207        0.08   $ 499,948      $ 185        0.08

Time

    228,846        868        0.76     230,419        1,003        0.88

FHLB

    30,179        215        1.44     37,686        651        3.48

Subordinated debentures

    29,427        373        2.56     29,427        399        2.73

Repuchase Agreements

    18,745        9        0.10     20,246        10        0.10
 

 

 

   

 

 

     

 

 

   

 

 

   

Total interest-bearing liabilities

  $ 847,533        1,672        0.40   $ 817,726        2,248        0.55
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Noninterest-bearing deposits

    379,786            335,492       

Other liabilities

    14,258            11,322       

Shareholders’ Equity

    118,123            112,981       
 

 

 

       

 

 

     

Total Liabilities and Shareholders’ Equity

  $ 1,359,700          $ 1,277,521       
 

 

 

       

 

 

     

Net interest income and interest rate spread

    $ 22,831        3.68     $ 20,432        3.47

Net interest margin

        3.81         3.63

 

* - All yields and costs are presented on an annualized basis


Average Balance Analysis

(Unaudited - Dollars in thousands except share data)

 

    Three Months Ended June 30,  
    2015     2014  
    Average
balance
    Interest     Yield/
rate *
    Average
balance
    Interest     Yield/
rate *
 

Assets:

           

Interest-earning assets:

           

Loans

  $ 991,487      $ 11,270        4.56   $ 861,842      $ 9,850        4.59

Taxable securities

    140,943        796        2.31     151,020        893        2.40

Non-taxable securities

    70,610        640        5.74     61,889        580        5.87

Interest-bearing deposits in other banks

    43,691        34        0.31     57,500        42        0.29
 

 

 

   

 

 

     

 

 

   

 

 

   

Total interest-earning assets

  $ 1,246,731        12,740        4.23   $ 1,132,251        11,365        4.15
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Noninterest-earning assets:

           

Cash and due from financial institutions

    26,222            25,769       

Premises and equipment, net

    16,173            16,371       

Accrued interest receivable

    4,561            4,332       

Intangible assets

    29,164            23,740       

Other assets

    10,885            9,155       

Bank owned life insurance

    19,795            19,320       

Less allowance for loan losses

    (14,593         (16,271    
 

 

 

       

 

 

     

Total Assets

  $ 1,338,938          $ 1,214,667       
 

 

 

       

 

 

     

Liabilities and Shareholders Equity:

           

Interest-bearing liabilities:

           

Demand and savings

  $ 555,144      $ 109        0.08   $ 505,828      $ 95        0.08

Time

    233,047        424        0.73     225,182        478        0.85

FHLB

    25,958        94        1.45     37,649        327        3.48

Subordinated debentures

    29,427        193        2.63     29,427        195        2.66

Repuchase Agreements

    17,302        4        0.09     16,590        4        0.10
 

 

 

   

 

 

     

 

 

   

 

 

   

Total interest-bearing liabilities

  $ 860,878        824        0.38   $ 814,676        1,099        0.54
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Noninterest-bearing deposits

    345,241            278,266       

Other liabilities

    13,607            11,846       

Shareholders’ Equity

    119,212            109,879       
 

 

 

       

 

 

     

Total Liabilities and Shareholders’ Equity

  $ 1,338,938          $ 1,214,667       
 

 

 

       

 

 

     

Net interest income and interest rate spread

    $ 11,916        3.85     $ 10,266        3.61

Net interest margin

        3.96         3.76

 

* - All yields and costs are presented on an annualized basis


Supplemental Financial Information

(Unaudited - Dollars in thousands except share data)

 

End of Period Balances

  June 30,
2015
    March 31,
2015
    December 31,
2014
    September 30,
2014
    June 30,
2014
 

Assets

         

Cash and due from banks

  $ 35,092      $ 142,339      $ 29,858      $ 24,128      $ 50,650   

Securities available for sale

    197,429        199,693        197,905        200,891        197,680   

Loans held for sale

    4,034        2,919        2,410        1,399        2,168   

Loans

    1,002,917        984,105        914,857        887,018        867,978   

Allowance for loan losses

    (14,707     (14,315     (14,268     (15,445     (15,395
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Loans

    988,210        969,790        900,589        871,573        852,583   

Other securities

    13,261        13,400        12,586        12,554        12,548   

Fixed assets

    16,308        16,163        14,400        14,471        14,858   

Goodwill and other intangibles

    29,608        29,790        23,745        23,900        24,090   

Bank owned life insurance

    19,870        19,754        19,637        19,518        19,400   

Other assets

    13,460        13,391        13,479        13,565        11,153   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Assets

  $ 1,317,272      $ 1,407,239      $ 1,214,609      $ 1,181,999      $ 1,185,130   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities

         

Total Deposits

  $ 1,075,806      $ 1,197,316      $ 968,918      $ 980,634      $ 979,136   

Federal Home Loan Bank advances

    55,300        17,500        65,200        26,200        37,500   

Securities sold under agreement to repurchase

    17,460        21,488        21,613        20,128        17,881   

Subordinated debentures

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

Accrued expenses and other liabilities

    19,257        22,581        11,540        9,727        7,281   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    1,197,250        1,288,312        1,096,698        1,066,116        1,071,225   

Shareholders’ equity

         

Preferred shares, Series B

    22,273        22,309        23,132        23,132        23,132   

Common Stock

    115,248        115,187        114,365        114,365        114,365   

Accumulated deficit

    414        (1,918     (4,306     (5,785     (7,300

Treasury stock

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

Accumulated other comprehensive income (loss)

    (678     584        1,955        1,406        943   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total shareholders’ equity

    120,022        118,927        117,911        115,883        113,905   

Total liabilities and shareholders’ equity

  $ 1,317,272      $ 1,407,239      $ 1,214,609      $ 1,181,999      $ 1,185,130   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Quarterly Average Balances

                             

Assets:

         

Earning assets

  $ 1,246,731      $ 1,254,924      $ 1,116,900      $ 1,110,722      $ 1,132,251   

Securities

    211,553        211,521        211,955        210,635        212,909   

Loans

    991,487        927,105        898,197        883,459        861,842   

Liabilities and shareholders’ equity

         

Total deposits

  $ 1,133,432      $ 1,164,674      $ 987,803      $ 986,151      $ 1,009,276   

Interest-bearing deposits

    788,191        749,959        727,424        728,248        731,010   

Interest-bearing liabilities

    72,687        84,079        79,314        78,339        83,666   

Total shareholders’ equity

    119,212        117,021        116,695        114,362        109,879   


Supplemental Financial Information

(Unaudited - Dollars in thousands except share data)

 

    Three Months Ended  

Income statement

  June 30,
2015
    March 31,
2015
    December 31,
2014
    September 30,
2014
    June 30,
2014
 

Total interest income

  $ 12,740      $ 11,762      $ 11,623      $ 11,667      $ 11,365   

Total interest expense

    824        847        872        983        1,099   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income

    11,916        10,915        10,751        10,684        10,266   

Provision for loan losses

    400        400        —          —          750   

Noninterest income

    3,652        4,402        2,858        3,012        3,380   

Noninterest expense

    10,933        10,603        10,482        10,661        9,979   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before taxes

    4,235        4,314        3,127        3,035        2,917   

Income tax expense

    1,113        1,143        857        729        677   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

    3,122        3,171        2,270        2,306        2,240   

Preferred stock dividends

    391        404        406        406        406   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income available to common shareholders

  $ 2,731      $ 2,767      $ 1,864      $ 1,900      $ 1,834   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Common stock dividend paid

  $ 391      $ 385      $ 385      $ 385      $ 385   

Per share data

                             

Basic net income per common share

  $ 0.35      $ 0.36      $ 0.23      $ 0.25      $ 0.24   

Diluted net income per common share

    0.29        0.29        0.21        0.21        0.21   

Dividends per common share

    0.05        0.05        0.05        0.05        0.05   

Average common shares outstanding - basic

    7,825,176        7,757,168        7,707,917        7,707,917        7,707,917   

Average common shares outstanding - diluted

    10,904,841        10,904,844        10,904,848        10,904,848        10,904,848   

Asset quality

                             

Allowance for loan losses, beginning of period

  $ 14,315      $ 14,268      $ 15,445      $ 15,395      $ 16,767   

Charge-offs

    (305     (585     (1,341     (456     (2,332

Recoveries

    297        232        164        506        210   

Provision

    400        400        —          —          750   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Allowance for loan losses, end of period

  $ 14,707      $ 14,315      $ 14,268      $ 15,445      $ 15,395   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios

         

Allowance to total loans

    1.47     1.45     1.56     1.74     1.77

Allowance to nonperforming assets

    86.33     74.69     74.91     73.92     67.11

Allowance to nonperforming loans

    88.80     76.81     77.18     74.88     67.95

Nonperforming assets

         

Nonperforming loans

  $ 16,562      $ 18,638      $ 18,486      $ 20,628      $ 22,657   

Other real estate owned

    474        528        560        266        282   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total nonperforming assets

  $ 17,036      $ 19,166      $ 19,046      $ 20,894      $ 22,939   

Capital and liquidity

         

Tier 1 leverage ratio

    9.38     8.91     10.37     10.28     9.77

Tier 1 risk-based capital ratio

    12.20     12.10     13.52     13.77     13.67

Total risk-based capital ratio

    13.45     13.35     14.78     15.03     14.92

Tangible common equity ratio

    5.29     4.79     5.96     5.95     5.51