Attached files
| file | filename |
|---|---|
| EX-2.1 - PLAN OF PURCHASE, SALE, REORGANIZATION, ARRANGEMENT, LIQUIDATION OR SUCCESSION - Paragon Commercial CORP | pbnc_ex21.htm |
| EX-99.1 - PRESS RELEASE - Paragon Commercial CORP | pbnc_ex99.htm |
| 8-K - CURRENT REPORT - Paragon Commercial CORP | pbnc_8k.htm |
Exhibit 99.2
NEWS RELEASE
Paragon Commercial Corporation Reports 18% Increase
in Earnings for the First Quarter of 2017
Highlights:
■
First quarter 2017
net income of $3.4 million, an 18% increase over the same period in
the prior year
■
Fully diluted
earnings per share of $0.62 consistent with the prior year despite
shares added during the IPO in the second quarter of
2016
■
Loan growth of
$39.7 million in the first quarter of 2017, an annualized growth
rate of 13%
■
Credit quality
remains strong with nonperforming loans at only 0.04% of total
loans
■
First quarter ROAA
of 0.87% and ROAE of 9.86%
RALEIGH,
N.C., April 26, 2017 – Paragon Commercial Corporation (the
“Company” ) (Nasdaq: PBNC), parent company of Paragon
Bank (the “Bank”), today reported unaudited financial
results for the three-month period ended March 31, 2017. Net income
during the three-month period increased 18% to $3.4 million
compared to $2.8 million for the same period in 2016. The increase
in earnings was primarily driven by an increase in net interest
income which was a result of continued loan growth. The increase in
net interest income was partially offset by a $159,000 loan loss
provision as the Company increased its allowance for loan losses
commensurate with loan growth. In addition, the first quarter of
2016 included $85,000 in securities gains compared to no such gains
in the first quarter of 2017. However, the first quarter of 2016
did have a loss on write-down of foreclosed properties of $212,000
compared to no such losses for the same period in 2017. Fully
diluted earnings per share (“EPS”) were $0.62 for the
first quarters of both 2017 and 2016 despite the additional shares
issued as a result of the Company’s initial public offering
(“IPO”) and listing on Nasdaq during the second quarter
of 2016. Despite increasing the share count by approximately 18% as
a result of the IPO, the share addition only resulted in EPS
dilution for one quarter, the third quarter of 2016.
“Paragon’s
growth continues to be strong which reflects our dynamic markets
and our ability to penetrate our markets with new and expanded
relationships. This growth coupled with our outstanding credit
quality, efficiency and local deposit all contribute to solid
earnings growth. Our continued emphasis on the Extraordinary Client
Experience resonates well with our clients and prospects.”
said Robert C. Hatley, President and CEO.
The
annualized return on average assets for the first quarter of 2017
was 0.87% and the annualized return on average equity was 9.86%
compared to 0.86% and 11.46%, respectively, for the same ratios in
the first quarter of 2016. Those ratios were impacted by the
additional capital as a result of the IPO.
Consolidated Assets
Total
consolidated assets on March 31, 2017 were $1.55 billion compared
to $1.50 billion as of December 31, 2016. Assets increased during
the quarter by $46.3 million primarily as a result of strong loan
demand.
Loan Portfolio
Loans
outstanding increased by $39.7 million during the first quarter
from $1.19 billion at December 31, 2016 to $1.23 billion at March
31, 2017. Commercial real estate grew $26.2 million, owner occupied
commercial real estate grew $6.4 million and consumer real estate
grew $12.1 million during the period while commercial lending
experienced a $9.2 million decrease and the other loan categories
remained relatively flat. The Company continues to see strong loan
growth throughout the Raleigh, Charlotte and Cary
markets.
Deposit Portfolio
Total
deposits increased by $92.6 million during the first quarter
despite the Company’s continued effort to pay down wholesale
deposits. During the first quarter, demand account balances
increased $11.7 million and money market and interest checking
accounts increased $106.7 million. The combined increase of $118.4
million represents a 50% annualized increase in these types of
deposits. At the same time, time deposits decreased $25.8 million
as the Company reduced its brokered deposit portfolio by $21.8
million or 28%. Growth in deposits allowed the Company to pay down
its Federal Home Loan Bank advances by $50.0 million during the
quarter.
Credit Quality
The
Company recorded a $159,000 loan loss provision for the first
quarter of 2017 as a result of the growth in total loans. There was
no provision for loan losses for the quarter ended March 31, 2016.
The allowance for loan losses as a percentage of total loans at
March 31, 2017 and December 31, 2016 was 0.66%.
Asset
quality continued to remain strong as nonperforming loans were
0.04% of total loans at March 31, 2017. Loans past due 30 days or
greater at quarter end were $59,000 or 0.00% of total loans and the
ratio of total nonperforming assets to total assets including
foreclosed real estate was 0.34%.
Net Interest Income
Net
interest income increased by $1.8 million during the first quarter
of 2017 compared to the first quarter of 2016. Net interest income
totaled $12.3 million during the period, representing a net
interest margin of 3.44% on a tax equivalent basis, which was down
0.10% when compared to 3.54% in the first quarter of 2016. Net
interest margin decreased primarily as a result of a larger balance
in lower yielding interest-earning cash. Despite the strong 13%
annualized loan growth rate, deposit growth well outpaced loan
growth for the quarter. Average interest-earning cash was $75.7
million in the first quarter of 2017 compared to $35.5 million in
the first quarter of 2016.
Non-Interest Income
For the
first quarter of 2017, non-interest income was $503,000 compared to
$266,000 for the same period in 2016. The first quarter of 2016 was
negatively impacted by $212,000 in write-downs or loss on sale of
foreclosed real estate. There were no losses on foreclosed real
estate in the first quarter of 2017. Conversely, the first quarter
of 2016 was also positively impacted by $85,000 in gains on sales
of securities. There were no gains on sales of securities in the
first quarter of 2017.
Non-Interest Expense
Non-interest
expenses in the first quarter of 2017 were $7.6 million compared to
$6.6 million in the first quarter of 2016. Personnel expense
increased by $595,000 as the Company added lenders and staff to
support its strong growth. In addition, data processing costs
increased by $146,000 partially reflecting the growth in the number
of accounts at the Bank and partially due to additional
cyber-security enhancements implemented during the
period.
MEDIA INQUIRIES:
Blair
Kelly – MMI Public Relations, 919.233.6600 or BKelly@MMIpublicrelations.com
Scott
Williams – Paragon Bank, SVP/Director of Marketing &
Public Relations, 919.534.7385 or SWilliams@ParagonBank.com
INVESTOR
INQUIRIES:
Steve
Crouse – Paragon Bank, Chief Financial Officer, 919.534.7404
or SCrouse@ParagonBank.com
NEW
MEDIA CONTENT:
Paragon
Bank LinkedIn Page: http://linkd.in/P0o9Wc
Page 2
ABOUT PARAGON COMMERCIAL CORPORATION
Paragon
Commercial Corporation is the parent company of Paragon Bank, which
provides a private banking experience to businesses, professionals,
executives, entrepreneurs and other individuals. Founded in
Raleigh, North Carolina in 1999, Paragon Bank provides banking
services through highly responsive professionals, an extensive
courier service, online and mobile technologies, free worldwide ATM
access, and a select number of strategically placed offices in
Raleigh, Cary and Charlotte, NC. For more information, visit
http://ParagonBank.com.
FORWARD-LOOKING STATEMENTS
Except
for historical information, all of the statements, expectations,
and assumptions contained in this press release are forward-looking
statements. Actual results might differ materially from those
explicit or implicit in the forward-looking statements. Important
factors that could cause actual results to differ materially
include, without limitation: the effects of future economic
conditions; governmental fiscal and monetary policies; legislative
and regulatory changes; the risks of changes in interest rates;
management of growth; fluctuations in our financial results;
reliance on key personnel; our ability to compete effectively;
privacy, security and other risks associated with our business; and
the other factors set forth from time to time in our SEC filings,
copies of which are available free of charge within the Investor
Relations section of our website at
https://paragonbank.com/investor-relations/ or upon request from
our investor relations department. Paragon Commercial Corporation
assumes no obligation and does not intend to update these
forward-looking statements, except as required by law.
USE OF NON-GAAP FINANCIAL MEASURES
Some of
the financial measures included in this press release are not
measures of financial performance recognized by United States
generally accepted accounting principles, or GAAP. These non-GAAP
financial measures are “overhead to average assets” and
“efficiency ratio.” Our management uses these non-GAAP
financial measures in its analysis of our performance and because
of market expectations of use of these ratios to evaluate the
Company. Management believes each of these non-GAAP financial
measures provides useful information about our financial condition
and results of operation.
“Overhead
to average assets” reflects the amount of non-interest
expenses incurred in comparison to the total size of the Company
and provides investors with an additional measure of our
productivity.
The
efficiency ratio shows the amount of revenue generated for each
dollar spent and provides investors with a measure of our
productivity.
These
non-GAAP disclosures should not be viewed as a substitute for
financial results determined in accordance with GAAP, nor are they
necessarily comparable to non-GAAP performance measures that may be
presented by other companies. Reconciliations of these non-GAAP
financial measures to the most directly comparable GAAP financial
measures are included in the tables at the end of this release
under the caption “Reconciliation of Non-GAAP Financial
Measures.”
|
PARAGON COMMERCIAL CORPORATION
|
|||||
|
CONSOLIDATED STATEMENTS OF INCOME
|
|||||
|
(Unaudited)
|
|||||
|
|
|||||
|
|
Three Months Ended
|
||||
|
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
|
(Dollars in thousands, except per share data)
|
2017
|
2016
|
2016
|
2016
|
2016
|
|
Loans
and loan fees
|
$13,070
|
$13,261
|
$12,544
|
$11,840
|
$11,190
|
|
Investment
securities
|
1,403
|
1,264
|
1,214
|
1,369
|
1,219
|
|
Federal
funds and other interest income
|
159
|
48
|
97
|
63
|
58
|
|
Total Interest and Dividend Income
|
14,632
|
14,573
|
13,855
|
13,272
|
12,467
|
|
Interest-bearing
checking and money markets
|
1,074
|
1,064
|
966
|
836
|
857
|
|
Time
deposits
|
511
|
560
|
588
|
556
|
567
|
|
Borrowings
and repurchase agreements
|
728
|
530
|
534
|
579
|
492
|
|
Total Interest Expense
|
2,313
|
2,154
|
2,088
|
1,971
|
1,916
|
|
Net Interest Income
|
12,319
|
12,419
|
11,767
|
11,301
|
10,551
|
|
Provision
for loan losses
|
159
|
200
|
391
|
-
|
-
|
|
Net Interest Income after Provision for Loan Losses
|
12,160
|
12,219
|
11,376
|
11,301
|
10,551
|
|
Non-interest Income
|
|
|
|
|
|
|
Increase
in cash surrender value of bank owned life insurance
|
258
|
247
|
220
|
226
|
223
|
|
Net
gain (loss) on sale of securities
|
-
|
21
|
-
|
-
|
85
|
|
Deposit
service charges and other fees
|
62
|
64
|
65
|
56
|
58
|
|
Mortgage
banking revenues
|
51
|
48
|
59
|
33
|
32
|
|
Net
loss on sale or write-down of other real estate
|
-
|
(443)
|
-
|
(45)
|
(212)
|
|
Other
non-interest income
|
132
|
272
|
94
|
111
|
80
|
|
Total Non-interest Income
|
503
|
209
|
438
|
381
|
266
|
|
|
|
|
|
|
|
|
Non-interest Expense
|
|
|
|
|
|
|
Salaries
and employee benefits
|
4,462
|
4,083
|
3,912
|
3,742
|
3,867
|
|
Occupancy
|
359
|
393
|
362
|
342
|
344
|
|
Furniture
and equipment
|
502
|
560
|
456
|
502
|
458
|
|
Data
processing
|
530
|
270
|
270
|
279
|
384
|
|
Directors
fees and expenses
|
224
|
193
|
219
|
219
|
252
|
|
Professional
fees
|
203
|
429
|
208
|
182
|
237
|
|
FDIC
and other supervisory assessments
|
166
|
71
|
220
|
217
|
195
|
|
Advertising
and public relations
|
221
|
210
|
239
|
234
|
188
|
|
Unreimbursed
loan costs and foreclosure related expenses
|
174
|
145
|
172
|
142
|
69
|
|
Other
expenses
|
771
|
654
|
720
|
629
|
606
|
|
Total Non-interest Expense
|
7,612
|
7,008
|
6,778
|
6,488
|
6,600
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
5,051
|
5,420
|
5,036
|
5,194
|
4,217
|
|
Income
tax expense
|
1,697
|
1,798
|
1,581
|
1,719
|
1,379
|
|
Net income
|
$3,354
|
$3,622
|
$3,455
|
$3,475
|
$2,838
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
$0.62
|
$0.67
|
$0.64
|
$0.76
|
$0.62
|
|
Diluted earnings per share
|
$0.62
|
$0.67
|
$0.64
|
$0.75
|
$0.62
|
Page 3
|
PARAGON COMMERCIAL CORPORATION
|
|||||
|
CONSOLIDATED BALANCE SHEETS
|
|||||
|
(Unaudited)
|
|||||
|
|
|
|
|||
|
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
|
(Dollars and shares in thousands)
|
2017
|
2016
|
2016
|
2016
|
2016
|
|
Assets
|
|
|
|
|
|
|
Cash
and due from banks
|
$56,478
|
$43,005
|
$73,706
|
$100,115
|
$51,559
|
|
Investment
securities - available for sale, at fair value
|
194,008
|
197,441
|
178,606
|
186,323
|
182,157
|
|
Loans-net
of unearned income and deferred fees
|
1,230,953
|
1,191,280
|
1,165,345
|
1,105,344
|
1,044,981
|
|
Allowance
for loan losses
|
(8,125)
|
(7,909)
|
(7,925)
|
(7,986)
|
(7,931)
|
|
|
1,222,828
|
1,183,371
|
1,157,420
|
1,097,358
|
1,037,050
|
|
Premises
and equipment, net
|
15,420
|
15,642
|
15,858
|
16,124
|
16,281
|
|
Bank
owned life insurance
|
34,448
|
34,190
|
28,943
|
28,723
|
28,497
|
|
Federal
Home Loan Bank stock, at cost
|
5,603
|
8,400
|
5,425
|
8,613
|
7,232
|
|
Accrued
interest receivable
|
4,403
|
4,368
|
4,022
|
4,092
|
3,858
|
|
Deferred
tax assets
|
4,734
|
4,841
|
3,361
|
3,264
|
4,304
|
|
Other
real estate owned and reposessed property
|
4,740
|
4,740
|
5,183
|
5,183
|
5,228
|
|
Other
assets
|
7,365
|
7,769
|
6,335
|
4,538
|
5,011
|
|
Total Assets
|
$1,550,027
|
$1,503,767
|
$1,478,859
|
$1,454,333
|
$1,341,177
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
Demand,
non-interest bearing
|
$222,904
|
$211,202
|
$188,398
|
$179,070
|
$166,556
|
|
Money
market accounts and interest checking
|
848,705
|
742,046
|
767,124
|
654,954
|
624,199
|
|
Time
deposits
|
193,249
|
219,007
|
243,563
|
266,177
|
256,378
|
|
Total
deposits
|
1,264,858
|
1,172,255
|
1,199,085
|
1,100,201
|
1,047,133
|
|
Repurchase
agreements and federal funds purchased
|
19,529
|
20,174
|
19,796
|
22,690
|
24,494
|
|
Borrowings
|
100,000
|
150,000
|
100,000
|
175,000
|
146,673
|
|
Subordinated
debentures
|
18,558
|
18,558
|
18,558
|
18,558
|
18,558
|
|
Other
liabilities
|
6,937
|
6,679
|
6,398
|
6,175
|
4,147
|
|
Total Liabilities
|
1,409,882
|
1,367,666
|
1,343,837
|
1,322,624
|
1,241,005
|
|
|
|
|
|
|
|
|
Stockholders' Equity
|
|
|
|
|
|
|
Common
stock, $0.008 par value
|
44
|
44
|
44
|
43
|
37
|
|
Additional
paid in capital
|
80,323
|
80,147
|
80,015
|
79,845
|
53,235
|
|
Retained
earnings
|
62,104
|
58,750
|
55,128
|
51,673
|
48,198
|
|
Accumulated
other comprehensive (loss) income
|
(2,326)
|
(2,840)
|
(165)
|
148
|
(1,298)
|
|
Total Stockholders' Equity
|
140,145
|
136,101
|
135,022
|
131,709
|
100,172
|
|
Total Liabilities and Stockholders' Equity
|
$1,550,027
|
$1,503,767
|
$1,478,859
|
$1,454,333
|
$1,341,177
|
Page 4
|
PARAGON COMMERCIAL CORPORATION
|
|||||
|
LOANS
|
|||||
|
(Unaudited)
|
|||||
|
|
|
|
|||
|
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
|
(In thousands except per share data)
|
2017
|
2016
|
2016
|
2016
|
2016
|
|
Loans
|
|
|
|
|
|
|
Construction
and land development
|
$78,552
|
$79,738
|
$74,605
|
$63,819
|
$68,316
|
|
Commercial
real estate:
|
|
|
|
|
|
|
Commercial
real estate
|
391,795
|
365,569
|
355,839
|
340,475
|
320,791
|
|
Commercial
real estate - owner occupied
|
193,291
|
186,892
|
178,631
|
158,612
|
144,168
|
|
Farmland
|
-
|
-
|
994
|
1,002
|
1,313
|
|
Multifamily,
nonresidential and junior liens
|
91,368
|
89,191
|
96,643
|
93,945
|
86,610
|
|
Total
commercial real estate
|
676,454
|
641,652
|
632,107
|
594,034
|
552,882
|
|
Consumer
real estate:
|
|
|
|
|
|
|
Home
equity lines
|
86,550
|
87,489
|
86,361
|
85,883
|
80,940
|
|
Secured
by 1-4 family residential, secured by 1st deeds of
trust
|
208,504
|
195,343
|
190,913
|
186,054
|
171,355
|
|
Secured
by 1-4 family residential, secured by 2nd deeds of
trust
|
4,247
|
4,289
|
4,358
|
3,656
|
3,731
|
|
Total
consumer real estate
|
299,301
|
287,121
|
281,632
|
275,593
|
256,026
|
|
Commercial
and industrial loans
|
162,580
|
170,709
|
164,913
|
157,640
|
153,159
|
|
Consumer
and other
|
14,066
|
12,060
|
12,088
|
14,258
|
14,598
|
|
Total loans
|
1,230,953
|
1,191,280
|
1,165,345
|
1,105,344
|
1,044,981
|
Page 5
|
PARAGON COMMERCIAL CORPORATION
|
|||||
|
OTHER FINANCIAL HIGHLIGHTS
|
|||||
|
(Unaudited)
|
|||||
|
|
|||||
|
|
Three Months Ended
|
||||
|
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
|
(In thousands, except per share data)
|
2017
|
2016
|
2016
|
2016
|
2016
|
|
Selected Average Balances:
|
|
|
|
|
|
|
Average
total assets
|
$1,557,830
|
$1,489,487
|
$1,452,526
|
$1,393,722
|
$1,323,397
|
|
Average
earning assets
|
1,492,181
|
1,409,467
|
1,378,081
|
1,310,510
|
1,235,237
|
|
Average
loans
|
1,209,314
|
1,184,790
|
1,135,448
|
1,071,325
|
1,019,396
|
|
Average
total deposits
|
1,165,010
|
1,169,062
|
1,123,277
|
1,019,133
|
994,219
|
|
Average
stockholders' equity
|
138,005
|
135,656
|
133,494
|
103,682
|
99,090
|
|
|
|
|
|
|
|
|
Performance Ratios:
|
|
|
|
|
|
|
Return
on average assets
|
0.87%
|
0.97%
|
0.95%
|
1.00%
|
0.86%
|
|
Return
on average equity
|
9.86%
|
10.68%
|
10.35%
|
13.41%
|
11.46%
|
|
Tangible
common equity ratio
|
9.04%
|
9.05%
|
9.13%
|
9.06%
|
7.47%
|
|
Total
interest-earning assets
|
$1,482,570
|
$1,435,505
|
$1,408,456
|
$1,373,728
|
$1,257,254
|
|
Tax
equivalent net interest margin
|
3.44%
|
3.58%
|
3.47%
|
3.55%
|
3.54%
|
|
Overhead
to average assets (1)
|
1.98%
|
1.88%
|
1.87%
|
1.86%
|
1.99%
|
|
Efficiency
ratio (1)
|
57.88%
|
52.66%
|
54.38%
|
54.13%
|
59.04%
|
|
|
|
|
|
|
|
|
Credit Ratios:
|
|
|
|
|
|
|
Non-accrual
loans
|
$500
|
$968
|
$948
|
$1,220
|
$487
|
|
Other
real estate owned
|
$4,740
|
$4,740
|
$5,183
|
$5,183
|
$5,228
|
|
Nonperforming
assets to total assets
|
0.34%
|
0.38%
|
0.41%
|
0.44%
|
0.43%
|
|
Nonperforming
loans to total loans
|
0.04%
|
0.08%
|
0.08%
|
0.11%
|
0.05%
|
|
Loans
past due >30 days and still accruing
|
$59
|
$-
|
$499
|
$346
|
$127
|
|
Net
loan charge-offs (recoveries)
|
$(57)
|
$216
|
$452
|
$(56)
|
$(289)
|
|
Annualized
net charge-offs (recoveries)/average loans
|
-0.02%
|
0.07%
|
0.16%
|
-0.02%
|
-0.11%
|
|
Allowance
for loan losses/total loans
|
0.66%
|
0.66%
|
0.68%
|
0.72%
|
0.76%
|
|
Allowance
for loan losses/nonperforming loans
|
1625%
|
817%
|
836%
|
655%
|
1629%
|
|
|
|
|
|
|
|
|
Per share data:
|
|
|
|
|
|
|
Average
diluted common shares outstanding
|
5,422,590
|
5,422,817
|
5,445,641
|
4,624,326
|
4,574,455
|
|
End
of quarter common shares outstanding
|
5,452,088
|
5,450,713
|
5,450,042
|
5,449,886
|
4,581,334
|
|
Book
value per common share
|
$25.70
|
$24.97
|
$24.77
|
$24.17
|
$21.87
|
(1)
This measure is not
a measure recognized under United States generally accepted
accounting principles, or GAAP, and is therefore considered to be a
non-GAAP financial measure. Please see “Reconciliation of
Non-GAAP Financial Measures” below for a reconciliation of
this measure to the most directly comparable GAAP
measure.
Page 6
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
“Overhead
to average assets” is defined as non-interest expense divided
by total average assets. We believe overhead to average assets is
an important indicator of the Company’s level of non-interest
expenses relative to the Company’s overall size, which
assists in the evaluation of our productivity. While the overhead
to average assets ratio is a measure of productivity, its value
reflects the attributes of the business model we
employ.
|
|
Three Months Ended
|
||||
|
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
|
(Dollars
in thousands)
|
2017
|
2016
|
2016
|
2016
|
2016
|
|
Overhead to Average Assets
|
|
|
|
|
|
|
Non-interest
expense
|
$7,612
|
$7,008
|
$6,778
|
$6,488
|
$6,600
|
|
Average
Assets
|
1,557,830
|
1,489,487
|
1,452,526
|
1,393,722
|
1,323,397
|
|
|
|
|
|
|
|
|
Overhead
to Average Assets
|
1.98%
|
1.88%
|
1.87%
|
1.86%
|
1.99%
|
|
|
|
|
|
|
|
Page 7
“Efficiency
ratio” is defined as total non-interest expense divided by
adjusted operating revenue. Adjusted operating revenue is equal to
net interest income (taxable equivalent) plus non-interest income,
adjusted to exclude the impacts of gains and losses on the sale of
securities and gains and losses on the sale or write-down of
foreclosed real estate because we believe the timing of the
recognition of those items to be discretionary. We believe the
efficiency ratio is important as an indicator of productivity
because it shows the amount of revenue generated by our operations
for each dollar spent. While the efficiency ratio is a measure of
productivity, its value reflects the attributes of the business
model we employ.
|
|
Three Months Ended
|
||||
|
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
|
(Dollars
in thousands)
|
2017
|
2016
|
2016
|
2016
|
2016
|
|
Efficiency Ratio
|
|
|
|
|
|
|
Non-interest
expense
|
$7,612
|
$7,008
|
$6,778
|
$6,488
|
$6,600
|
|
|
|
|
|
|
|
|
Net
interest taxable equivalent income
|
$12,649
|
$12,676
|
$12,026
|
$11,560
|
$10,785
|
|
Non-interest
income
|
503
|
209
|
438
|
381
|
266
|
|
Net
gain (loss) on investment securities
|
-
|
(21)
|
-
|
-
|
(85)
|
|
Net
loss on sale or write-down of foreclosed real estate
|
-
|
443
|
-
|
45
|
212
|
|
Adjusted
operating revenue
|
$13,152
|
$13,307
|
$12,464
|
$11,986
|
$11,178
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
57.88%
|
52.66%
|
54.38%
|
54.13%
|
59.04%
|
Page
8