Feed aggregator

First Citizens Bank Completes Merger With Palmetto Heritage Bancshares Inc., Palmetto Heritage Bank

Banking - 1 November 2018 - 8:35am

RALEIGH, N.C., Nov. 01, 2018 (GLOBE NEWSWIRE) -- First-Citizens Bank & Trust Company (First Citizens Bank) announced that the merger of Palmetto Heritage Bancshares, Inc. (Palmetto Heritage) and its subsidiary, Palmetto Heritage Bank & Trust (Palmetto Heritage Bank), into First Citizens Bank is effective today (Nov. 1).

The three Palmetto Heritage Bank branch offices will initially operate as Palmetto Heritage Bank, a division of First Citizens Bank. Customers should bank as they normally do at their existing branches. Palmetto Heritage Bank customer accounts will be converted to First Citizens Bank’s systems and new First Citizens signage will be installed at a later date.

Frank B. Holding Jr., chairman and CEO of First Citizens Bank, said: “First Citizens and Palmetto Heritage are an excellent fit for one another and will be even better together as we strengthen our presence in coastal South Carolina. We look forward to serving Palmetto Heritage customers and leveraging our stability and robust product base so that, together, we can build on an already solid foundation.”

On Oct. 29, the shareholders of Pawleys Island, S.C.-based Palmetto Heritage voted to approve the merger agreement with Raleigh, N.C.-headquartered First Citizens Bank. The merger was previously  approved by the Federal Deposit Insurance Corp., the North Carolina Commissioner of Banks and the South Carolina Board of Financial Institutions.

Palmetto Heritage Bank customers should continue to use their current checks and cards. They will continue to have the same online and mobile access to their accounts. Customers with questions about their accounts can contact a representative at any of the Palmetto Heritage Bank division branches. For questions about First Citizens Bank, they can call the First Citizens Customer Care Center, 1.888.323.4732, between 7 a.m. and 11 p.m. Eastern time daily.

The completed merger will complement First Citizens’ operations in coastal South Carolina. In addition to the three Palmetto Heritage Bank division locations in Pawleys Island, Mount Pleasant and Murrells Inlet, First Citizens operates 18 branches in Georgetown, Horry and Charleston counties and 135 branches throughout South Carolina.

Founded in 1898 and headquartered in Raleigh, N.C., First Citizens Bank serves customers at more than 500 branches in 19 states. First Citizens Bank is a wholly owned subsidiary of First Citizens BancShares, Inc. (Nasdaq: FCNCA), which has $35 billion in assets.  For more information, call toll free 1.888.FC DIRECT (1.888.323.4732) or visit www.firstcitizens.com. First Citizens Bank. Forever First®.

Contact: Barbara Thompson
First Citizens Bank
919.716.2716

Categories: State

Hanmi Financial Corp. Announces Participation at Upcoming November Investor Conferences

Banking - 1 November 2018 - 8:00am

LOS ANGELES, Nov. 01, 2018 (GLOBE NEWSWIRE) -- Hanmi Financial Corporation (Nasdaq: HAFC) (“Hanmi”), the holding company for Hanmi Bank (the “Bank”), today announced that they will participate in the following upcoming investor conferences:

  • Piper Jaffray’s Western Bank Symposium, to be held November 8, 2018 at the Resort at Pelican Hill in Newport Coast, California. The Company will be participating in one-on-one meetings with investors.
     
  • KBW’s West Coast Field Trip, to be held November 14, 2018 at the Langham Hotel in Pasadena, California. The Company will be participating on a panel and in meetings with investors.

Conference participation is by invitation only and registration is mandatory. For more information on the conference or to schedule a one-on-one meeting, please contact a Piper Jaffray or KBW representative.

About Hanmi Financial Corporation

Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 40 full-service branches and 9 loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington and Georgia. Hanmi Bank specializes in real estate, commercial, SBA and trade finance lending to small and middle market businesses. Additional information is available at www.hanmi.com.

Contact:

Richard Pimentel
Senior Vice President & Corporate Finance Officer
213-427-3191

Lasse Glassen
Addo Investor Relations
310-829-5400

Categories: State

Banner Corporation Completes Acquisition of Skagit Bancorp, Inc.

Banking - 1 November 2018 - 8:00am

WALLA WALLA, Washington, Nov. 01, 2018 (GLOBE NEWSWIRE) -- Banner Corporation (“Banner”) (NASDAQ GSM: BANR), the holding company for Banner Bank and Islanders Bank, today announced that effective November 1, 2018, it had completed the acquisition of Skagit Bancorp, Inc. (“Skagit”) and its wholly-owned subsidiary, Skagit Bank, of Burlington, Washington.  Pursuant to the previously announced terms of the acquisition, Skagit shareholders are entitled to receive 5.6664 shares of Banner common stock in exchange for each share of Skagit common stock, plus cash in lieu of any fractional shares.  

“We are pleased to announce the completion of the merger and to have Skagit’s shareholders, employees and customers join the Banner team,” stated Mark Grescovich, Banner’s President and Chief Executive Officer. “This transaction expands Banner’s presence and density in the attractive North Sound region in Northwest Washington state and represents a complementary fit, both strategically and culturally, with Banner’s business model.  The combination of our two organizations provides the opportunity to create operational efficiencies and enhance the value of the combined company while offering Skagit customers a broader product offering, increased lending limits and an expanded branch delivery system that stretches throughout the four states of Washington, Oregon, Idaho and California.”

Banner was advised by D.A. Davidson & Co., as financial advisor, and Wachtell, Lipton, Rosen & Katz, as legal counsel.  Skagit was advised by Sandler O’Neill & Partners, L.P., as financial advisor, and Miller Nash Graham & Dunn LLP, as legal counsel. 

Election of Director

In connection with the merger, Cheryl R. Bishop, the former Chief Executive Officer and director of Skagit, has been appointed to the Banner and Banner Bank boards of directors.  Ms. Bishop began her banking career at Skagit Bank in 1971, holding a variety of positions throughout her career before being named Chief Executive Officer in 2004.  Ms. Bishop has also served on the Board of Directors of Skagit Bancorp, Inc. and its subsidiary Skagit Bank since 1991.  Cheryl belongs to and has held officer positions in many prestigious professional associations such as the American Bankers Association, American Institute of Banking, Financial Women International, Washington Bankers Association and Western Independent Bankers.  She is a current member or is involved with various community organizations including: Skagit/Mount Vernon Rotary, Economic Development Alliance of Skagit County, Burlington Chamber of Commerce, Mount Vernon First United Methodist Church, Western Washington University Foundation, Jerry Walton Foundation Board, Skagit Valley Hospital–Community Outreach Committee and Honorary Chair of the Skagit Family YMCA Building Campaign.  Ms. Bishop holds a Bachelor’s degree in English literature from the University of Washington.

Executive Management

In addition, the former President and Chief Operating Officer of Skagit, Kenneth W. Johnson, will join Banner’s executive management team as Executive Vice President, Operations.  Mr. Johnson has over 30 years of banking experience.  Prior to joining Skagit Bank in 2015, Mr. Johnson held various executive positions with Chemical Financial Corporation, including production oversight of commercial, mortgage, consumer and deposit generation. In addition, while at Chemical, he served nine years as Executive Vice President, Director of Bank Operations, responsible for nine business units including the branch system, information technology, corporate marketing, loan operations, deposit operations, electronic banking, facilities/purchasing, card services, and customer care centers. Prior to Chemical, he held leadership roles in retail banking and operations at Shoreline Bank and as Vice President, Zone Manager for Michigan National Bank. Mr. Johnson holds a Bachelor of Arts Degree in Business Administration from Michigan State University. He is also a graduate of Stonier Graduate School of Banking.

About Banner Corporation

Banner Corporation is a $11.4 billion bank holding company operating two commercial banks in four Western states through a network of branches offering a full range of deposit services and business, commercial real estate, construction, residential, agricultural and consumer loans.  Visit Banner Bank on the Web at www.bannerbank.com.

Forward-Looking Statements

When used in this press release and in other documents filed with or furnished to the Securities and Exchange Commission (the “SEC”), in press releases or other public stockholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases “may,” “believe,” “will,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” “potential,” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date such statements are made.  These statements may relate to future financial performance, strategic plans or objectives, revenues or earnings projections, or other financial information.  By their nature, these statements are subject to numerous uncertainties that could cause actual results to differ materially from those anticipated in the statements.  Statements about the expected timing, completion and effects of the merger and all other statements in this release other than historical facts constitute forward-looking statements.

In addition to factors disclosed in Banner’s SEC reports, important factors that could cause actual results to differ materially from the results anticipated or projected include, but are not limited to, the following:  expected revenues, cost savings, synergies and other benefits from the merger of Banner and Skagit might not be realized within the expected time frames or at all and costs or difficulties relating to integration matters, including but not limited to customer and employee retention, might be greater than expected; business disruption may occur following or in connection with the merger of Banner and Skagit; Banner’s or Skagit’s businesses may experience disruptions due to transaction-related uncertainty or other factors making it more difficult to maintain relationships with employees, customers, other business partners or governmental entities; diversion of managements’ attention from ongoing business operations and opportunities as a result of the merger or otherwise; the credit risks of lending activities, including changes in the level and trend of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses and provisions for loan losses that may be impacted by deterioration in the housing and commercial real estate markets and may lead to increased losses and non-performing assets, and may result in the allowance for loan losses not being adequate to cover actual losses and require a material increase in reserves; results of examinations by regulatory authorities, including the possibility that any such regulatory authority may, among other things, require the writing down of assets or increases in the allowance for loan losses; the ability to manage loan delinquency rates; competitive pressures among financial services companies; changes in consumer spending or borrowing and spending habits; interest rate movements generally and the relative differences between short and long-term interest rates, loan and deposit interest rates, net interest margin and funding sources; the impact of repricing and competitors’ pricing initiatives on loan and deposit products; fluctuations in the demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values; the ability to adapt successfully to technological changes to meet customers’ needs and developments in the marketplace; the ability to access cost-effective funding; increases in premiums for deposit insurance; the ability to control operating costs and expenses; the use of estimates in determining fair value of certain assets and liabilities, which estimates may prove to be incorrect and result in significant changes in valuation; staffing fluctuations in response to product demand or the implementation of corporate strategies that affect employees, and potential associated charges; disruptions, security breaches or other adverse events, failures or interruptions in, or attacks on, information technology systems or on the third-party vendors who perform critical processing functions; changes in financial markets; changes in economic conditions in general and in Washington, Idaho, Oregon and California in particular; secondary market conditions for loans and the ability to sell loans in the secondary market; the costs, effects and outcomes of litigation; legislation or regulatory changes or reforms, including changes in regulatory policies and principles, or the interpretation of regulatory capital or other rules, including changes related to Basel III; the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and the implementing regulations; results of safety and soundness and compliance examinations by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Washington State Department of Financial Institutions, Division of Banks, or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require restitution or institute an informal or formal enforcement action which could require an increase in reserves for loan losses, write-downs of assets or changes in regulatory capital position, or affect the ability to borrow funds, or maintain or increase deposits, or impose additional requirements and restrictions, any of which could adversely affect liquidity and earnings; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; adverse changes in the securities markets; the inability of key third-party providers to perform their obligations; changes in accounting principles, policies or guidelines, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; the economic impact of war or any terrorist activities; other economic, competitive, governmental, regulatory and technological factors affecting operations, pricing, products and services; future acquisitions by Banner of other depository institutions or lines of business; and future goodwill impairment due to changes in Banner’s business, changes in market conditions, or other factors. 

Forward-looking statements speak only as of the date on which they are made, and Banner undertakes no obligation to update any forward-looking statement to reflect circumstances or events that occur after the date on which the forward-looking statement is made.

Contact: 
Mark J. Grescovich,
President & CEO
Peter J. Conner, CFO 
(509) 527-3636


Categories: State

Patriot Bank Announces Addition of former top SBA official Brent Ciurlino to its Board

Banking - 1 November 2018 - 7:30am

STAMFORD, Conn., Nov. 01, 2018 (GLOBE NEWSWIRE) -- Patriot National Bancorp, Inc. (“Patriot”) (NASDAQ:PNBK), the parent company of Patriot Bank, N.A. (the “Bank”), today announced it has appointed finance industry veteran and former top regulatory official with the U.S. Small Business Administration (SBA) Brent Ciurlino to its board of directors.

Mr. Ciurlino currently leads a specialized risk management and regulatory practice at Ivorhill Financial Advisers in Washington, D.C., where he has handled international assignments with the World Bank, IFC and IMF. He has a broad background and expertise in credit and risk management, having served in numerous roles in the private and public sectors.

He served as Director of the Office of Credit Risk Management for the SBA, where he implemented the PARRiS/SMART risk protocols and supervised the $105 billion SBA 7(a) and 504 loan debenture and portfolio programs. He also supervised and regulated more than 4,000 SBA financial institutions across the United States.

“As a banking executive and former federal regulator overseeing small business loan programs, Brent brings substantial expertise and value that will benefit Patriot Bank, its customers and its shareholders,” said Patriot Chairman and CEO Michael Carrazza. “As we build our small business lending portfolio and look ahead to the goals we have set, Brent’s active involvement will bring a heightened dimension of operational, regulatory and risk management oversight. We are thrilled to have him aboard.”

“It is very exciting to become a part of Patriot’s dynamic and talented team, particularly in the areas of SBA lending and enterprise risk management,” said Mr. Ciurlino. “I’m delighted to actively contribute to Patriot’s successful growth, diversification and expansion of its small business lending capabilities. I look forward to working with my colleagues on the board and with the senior management team.”

Patriot became an approved SBA lender at the end of 2017 and was designated a “preferred lender” by the SBA earlier in this year, enabling it to approve loans to small businesses and entrepreneurs more quickly and efficiently. Patriot opened SBA Business Development offices in Stamford, CT and Atlanta, GA this year and plans to open in Jacksonville, FL later this month.

Following the financial crisis and prior to his position of Director of the Office of Credit and Risk Management for the Small Business Administration, Mr. Ciurlino was appointed by former FDIC Chairman, Sheila Bair, Senior Asset Management Executive responsible for the Western Region of the FDIC Branch of Franchise and Asset Services.  He served as designated voting member of the Regional Credit, Strategic Bank Resolution and Bank Oversight Committees.  In these roles Mr. Ciurlino:

  • Monitored and Supervised over 800 banks and bank holding companies;
  • Supervised 165 franchise banks & receivership transactions, with over $150B in assets;
  • Supervised $88 billion in 68 Western Region loss share banks and 11 structured transactions; and
  • Completed over 92 secondary loan transactions for over $14 billion across the U.S.

Prior to this, he served as Managing Director at RSM Global International, where he managed diverse banking engagements for domestic and international banks, the FDIC, SBA, HUD, World Bank/IFC, and the IMF.

He also served as Managing Director/CEO of UnionBank Holding Company and UnionBank, a $2 billion international banking group, with 32 domestic and international branches and two international credit card processing centers, which merged with Royal Bank of Canada.

Prior to Union Bank, he served as Senior Vice President – Chief Credit and Underwriting Officer at RSM- Unicorp, where he worked on numerous domestic and international assignments representing several banks, financial institutions and government agencies.

His first FDIC appointment was in 1990, where he was appointed Deputy Director of Asset Management Services for the Resolution Trust Corp and the FDIC.

Most recently Mr. Ciurlino served as Chief Operating and Risk Officer for Freedom Mortgage Corporation and Freedom Small Business Lending BIDCO, and led its sale and divestiture to ReadyCap Lending, the largest SBA lending company.

He graduated from the University of Maine with a B.S. degree and earned his M.S. degree in Economics and Finance from Washington State University.

About the Company  

Founded in 1994, Patriot National Bancorp, Inc. (“Patriot” or “Bancorp”) is the parent holding company of Patriot Bank N.A. (“Patriot”), a nationally chartered bank headquartered in Stamford, CT.  Patriot operates with full service branches in Connecticut and New York and provides lending products and services nationally. Patriot’s mission is to serve its local community and nationwide customer base by providing a growing array of banking solutions to meet the needs of individuals and small businesses owners. Patriot places great value in the integrity of its people and how it conducts business.  An emphasis on building strong client relationships and community involvement are cornerstones of our philosophy as we seek to maximize shareholder value.

Contact:
Butler Associates, LLC Public Relations
Tom Butler 646-213-1802 / tbutler@ButlerAssociates.com 

Categories: State

HomeTrust Bancshares, Inc. Announces First Ever Cash Dividend

Banking - 1 November 2018 - 7:30am

ASHEVILLE, N.C., Nov. 01, 2018 (GLOBE NEWSWIRE) -- HomeTrust Bancshares, Inc. (NASDAQ: HTBI) ("Company"), the holding company of HomeTrust Bank ("Bank"), announced today that its Board of Directors declared its first ever cash dividend of $0.06 per common share payable on December 6, 2018 to shareholders of record as of the close of business on November 21, 2018.

"I am pleased to announce our first ever quarterly cash dividend," said Dana Stonestreet, Chairman, President and Chief Executive Officer. "Initiating a quarterly dividend is appropriate with our recent inflection in earnings and high capital ratio. The dividend reflects our continuing growth and profitability and our Board’s commitment to build long-term value for our shareholders. As we continue our momentum towards high performance, total shareholder returns and prudent capital management remain a priority."

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements often include words such as "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could," or "may." Forward-looking statements are not historical facts but instead represent management's current expectations and forecasts regarding future events, many of which are inherently uncertain and outside of our control. Actual results may differ, possibly materially, from those currently expected or projected in these forward-looking statements. Factors that could cause our actual results to differ materially from those described in the forward-looking statements, include expected cost savings, synergies and other financial benefits from our acquisitions might not be realized within the expected time frames or at all, and costs or difficulties relating to integration matters might be greater than expected; increased competitive pressures; changes in the interest rate environment; changes in general economic conditions and conditions within the securities markets; legislative and regulatory changes; and other factors described in HomeTrust's latest annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other documents filed with or furnished to the Securities and Exchange Commission - which are available on our website at www.htb.com and on the SEC's website at www.sec.gov. Any of the forward-looking statements that we make in this press release or the documents we file with or furnish to the SEC are based upon management's beliefs and assumptions at the time they are made and may turn out to be wrong because of inaccurate assumptions we might make, because of the factors described above or because of other factors that we cannot foresee. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for fiscal 2019 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us and could negatively affect our operating and stock performance.

About HomeTrust Bancshares, Inc.
HomeTrust Bancshares, Inc. is the holding company for HomeTrust Bank. As of September 30, 2018, the Company had assets of $3.4 billion. The Bank, founded in 1926, is a North Carolina state chartered, community-focused financial institution committed to providing value added relationship banking through 43 locations as well as online/mobile channels. Locations include: North Carolina (including the Asheville metropolitan area, the "Piedmont" region, Charlotte, and Raleigh/Cary), Upstate South Carolina (Greenville), East Tennessee (including Kingsport/Johnson City/Bristol, Knoxville, and Morristown) and Southwest Virginia (including the Roanoke Valley). The Bank is the second largest community bank headquartered in North Carolina.

www.htb.com

www.hometrustbancshares.com

Contact:

Dana L. Stonestreet – Chairman, President and Chief Executive Officer
Tony J. VunCannon – Executive Vice President, Chief Financial Officer, Corporate Secretary and Treasurer
828-259-3939

Categories: State

SmartFinancial, Inc. Completes Acquisition of Foothills Bancorp, Inc.

Banking - 1 November 2018 - 7:00am

KNOXVILLE and MARYVILLE, Tenn., Nov. 01, 2018 (GLOBE NEWSWIRE) -- SmartFinancial, Inc., Knoxville, Tennessee (“SmartFinancial”) (Nasdaq: SMBK), parent company of SmartBank, today announced the completion of its previously-announced acquisition of Foothills Bancorp, Inc., Maryville, Tennessee (“Foothills Bancorp”), and Foothills Bancorp’s wholly owned bank subsidiary, Foothills Bank & Trust. Effective November 1, 2018, Foothills Bancorp has been merged with and into SmartFinancial, and Foothills Bank & Trust has been merged with and into SmartBank. Based on financial data as of September 30, 2018, the combined company has total consolidated assets of approximately $2.3 billion. This marks SmartFinancial’s third acquisition in the last 12 months. 

“We are very excited to expand our presence in East Tennessee and begin introducing our brand to Blount County and further into west Knox County with the addition of the Farragut branch,” said SmartFinancial President and CEO, Billy Carroll.  “Our team is ready to hit the ground running and completing this acquisition puts us one step closer to serving this great neighboring market.  We will be working hard over the next several months preparing for the rebrand and a smooth transition for clients, as well as our newly added team members.”

SmartFinancial Chairman Miller Welborn added, “The partnership with Foothills Bank & Trust is ideal and we are extremely excited to increase our footprint in such a strong market with such a good group of experienced and talented bankers.”

The legacy Foothills Bank & Trust branch offices will continue to operate under the Foothills Bank & Trust name, as a division of SmartBank, until mid-March 2019, at which time it is expected these branch offices will adopt the SmartBank brand.

SmartFinancial and SmartBank were advised by the law firm Butler Snow LLP, and Banks Street Partners, LLC served as financial advisor to SmartFinancial and SmartBank. Monroe Financial Partners, Inc. served as financial advisor to Foothills Bancorp and Foothills Bank & Trust, and Foothills Bancorp and Foothills Bank & Trust were advised by the law firm Baker, Donelson, Bearman, Caldwell & Berkowitz, PC. 

About SmartFinancial, Inc.

SmartFinancial, Inc., based in Knoxville, Tennessee, is the bank holding company for SmartBank. SmartBank is a full-service commercial bank founded in 2007, with 28 branches across Tennessee, Alabama, and the Florida Panhandle. Recruiting the best people, delivering exceptional client service, strategic branching and acquisitions, and a disciplined approach to lending have contributed to SmartBank’s success. More information about SmartFinancial can be found on its website: www.smartfinancialinc.com.

Forward-Looking Statements

Certain of the statements made in this press release may constitute 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. Such forward-looking statements, including statements regarding the intent, belief, or current expectations of SmartFinancial management regarding SmartFinancial’s strategic direction, prospects, or future results or the benefits of SmartFinancial’s recently completed acquisitions, are subject to numerous risks and uncertainties. Such factors include, among others, the risk that cost savings and revenue synergies anticipated from SmartFinancial’s recently completed acquisitions may not be realized or may take longer than anticipated to be realized; the risk that the integration of recently acquired institutions may be more expensive to complete than anticipated, including as a result of unexpected factors or events, or may prove more difficult than expected or may be delayed; reputational risk attendant to SmartFinancial’s recently completed acquisitions; disruption from recently completed acquisitions with customers, suppliers, or employee or other business relationships; the amount of costs, fees, expenses, and charges associated with SmartFinancial’s acquisitions; the dilution caused by SmartFinancial’s issuance of additional shares of its common stock as consideration for recently completed acquisitions; changes in management’s plans for the future; prevailing economic and political conditions, particularly in SmartFinancial’s market areas; credit risk associated with SmartFinancial’s lending activities; changes in interest rates, loan demand, real estate values, and competition; changes in accounting principles, policies, or guidelines; changes in applicable laws, rules, or regulations; and other competitive, economic, political, and market factors affecting SmartFinancial’s business, operations, pricing, products, and services. Certain additional factors which could affect the forward-looking statements can be found in SmartFinancial’s report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, in each case filed with or furnished to the SEC and available on the SEC’s website at http://www.sec.gov. SmartFinancial disclaims any obligation to update or revise any forward-looking statements contained in this press release, which speak only as of the date hereof, whether as a result of new information, future events, or otherwise.

Investor Contacts

William Y. (“Billy”) Carroll, Jr.
President and Chief Executive Officer
SmartFinancial, Inc.
Email: billy.carroll@smartbank.com
Phone: 865.868.0613

Ron Gorczynski
Executive Vice President
Chief Administrative Officer
SmartFinancial, Inc.
Email: ron.gorczynski@smartbank.com
Phone: 865.437.5724

Media Contact

Kelley Fowler
Senior Vice President
Public Relations/Marketing
SmartFinancial, Inc.
Email: kelley.fowler@smartbank.com
Phone: 865.868.0611

Categories: State

PacWest Bancorp Announces Quarterly Dividend

Banking - 1 November 2018 - 7:00am

-- $0.60 Per Share Cash Dividend Payable on November 30, 2018 to Stockholders of Record on November 20, 2018 --

LOS ANGELES, Nov. 01, 2018 (GLOBE NEWSWIRE) -- PacWest Bancorp (Nasdaq: PACW) announced today that its Board of Directors has declared a quarterly cash dividend of $0.60 per common share. The cash dividend is payable on November 30, 2018 to stockholders of record at the close of business on November 20, 2018. 

ABOUT PACWEST BANCORP

PacWest Bancorp (“PacWest”) is a bank holding company with over $24 billion in assets with one wholly-owned banking subsidiary, Pacific Western Bank (the “Bank”). The Bank has 74 full-service branches located throughout the state of California and one branch in Durham, North Carolina. Our Community Banking group provides lending and comprehensive deposit and treasury management services to small and medium-sized businesses conducted primarily through our California-based branch offices. We offer additional products and services through our National Lending and Venture Banking groups. National Lending provides asset-based, equipment, real estate and security cash flow loans and treasury management services to established middle market businesses on a national basis. Venture Banking offers a comprehensive suite of financial services focused on entrepreneurial businesses and their venture capital and private equity investors, with offices located in key innovative hubs across the United States. For more information about PacWest Bancorp, visit www.pacwestbancorp.com, or to learn more about Pacific Western Bank, visit www.pacificwesternbank.com.

Contact information:
Don D. Destino, Executive Vice President, Corporate Development and Investor Relations, (310) 887-8521

 

Categories: State

Sandy Spring Bancorp Declares Quarterly Dividend

Banking - 1 November 2018 - 6:00am

OLNEY, Md., Nov. 01, 2018 (GLOBE NEWSWIRE) -- Sandy Spring Bancorp, Inc., (Nasdaq- SASR), the parent company of Sandy Spring Bank, announced that the board of directors declared a quarterly common stock dividend of $0.28 per share payable on November 21, 2018, to shareholders of record on November 14, 2018. This dividend is consistent with the dividend paid in the third quarter of 2018 and represents a $0.02 increase over the dividend paid in the fourth quarter of 2017.

About Sandy Spring Bancorp, Inc./Sandy Spring Bank

Sandy Spring Bancorp, Inc., headquartered in Olney, Maryland, is the holding company for Sandy Spring Bank. Independent and community-oriented, Sandy Spring Bank offers a broad range of commercial banking, retail banking, mortgage and trust services throughout central Maryland, Northern Virginia, and the greater Washington, D.C. market. Through its subsidiaries, Sandy Spring Insurance Corporation and West Financial Services, Inc., Sandy Spring Bank also offers a comprehensive menu of insurance and wealth management services. Visit www.sandyspringbank.com for more information.

For additional information or questions, please contact:
Daniel J. Schrider, President & Chief Executive Officer, or
Philip J. Mantua, Executive V.P. & Chief Financial Officer
Sandy Spring Bancorp
17801 Georgia Avenue
Olney, Maryland 20832
1-800-399-5919
Email: DSchrider@sandyspringbank.com PMantua@sandyspringbank.com  Website:  www.sandyspringbank.com  Media Contact:Jen SchellSandy Spring Bank301-570-8331JSchell@sandyspringbank.com


Categories: State

FNCB Bancorp, Inc. Increases Fourth Quarter Dividend 25%

Banking - 31 October 2018 - 4:00pm

Dunmore, Pa., Oct. 31, 2018 (GLOBE NEWSWIRE) -- The Board of Directors of FNCB Bancorp, Inc. (NASDAQ:FNCB) today declared a dividend of $0.05 per share for the fourth quarter of 2018, representing a 25.0% increase over the $0.04 per share dividend declared for the same quarter of 2017. Year to date 2018 dividends declared total $0.17 per share, an increase of $0.04 per share, or 30.8%, compared to $0.13 per share for the same period of 2017. The dividend is payable December 17, 2018 to shareholders of record December 3, 2018. 

About FNCB Bancorp, Inc.:
FNCB Bancorp, Inc. is the bank holding company of FNCB Bank. Locally-based for over 100 years, FNCB Bank continues as a premier community bank in Northeastern Pennsylvania – offering a full suite of personal, small business and commercial banking solutions with industry-leading mobile, online and in-branch products and services. FNCB operates through 16 branch offices located in Lackawanna, Luzerne and Wayne Counties and a limited purpose office in Lehigh County, and remains dedicated to making our customers’ banking experience simply better. For more information about FNCB, visit www.fncb.com.

FNCB may from time to time make written or oral “forward-looking statements,” including statements contained in our filings with the Securities and Exchange Commission (“SEC”), in its reports to shareholders, and in other communications, which are made in good faith by us pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.

These forward-looking statements include statements with respect to FNCB’s beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, that are subject to significant risks and uncertainties, and are subject to change based on various factors (some of which are beyond our control).  The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan” and similar expressions are intended to identify forward-looking statements.  The following factors, among others, could cause FNCB’s financial performance to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements: the strength of the United States economy in general and the strength of the local economies in our markets; the effects of, and changes in trade, monetary, fiscal and tax policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market and monetary fluctuations; the timely development of and acceptance of new products and services; the ability of FNCB to compete with other institutions for business, including for deposit and loan growth: the composition and concentrations of FNCB’s lending risk and the adequacy of FNCB’s reserves to manage those risks; the valuation of FNCB’s investment securities; the ability of FNCB to pay dividends or repurchase common shares; the ability of FNCB to retain key personnel; the impact of any pending or threatened litigation against FNCB; the marketability of shares of FNCB stock and fluctuations in the value of FNCB’s share price; the effectiveness of FNCB’s system of internal controls; the ability of FNCB to attract additional capital investment; the impact of changes in financial services’ laws and regulations (including laws concerning capital adequacy, taxes, banking, securities and insurance); the ability of FNCB to identify future acquisition targets, complete acquisitions and integrate new teams into FNCB’s operations; the impact of technological changes and security risks upon our information technology systems; changes in consumer spending and saving habits; the nature, extent, and timing of governmental actions and reforms, and the success of FNCB at managing the risks involved in the foregoing and other risks and uncertainties, including those detailed in FNCB’s filings with the SEC.

FNCB cautions that the foregoing list of important factors is not all inclusive.  Readers are also cautioned not to place undue reliance on any forward-looking statements, which reflect management’s analysis only as of the date of this report, even if subsequently made available by FNCB on its website or otherwise.  FNCB does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of FNCB to reflect events or circumstances occurring after the date of this report.

Readers should carefully review the risk factors described in the Annual Report and other documents that FNCB periodically files with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2017.

CONTACT: NVESTOR CONTACT: James M. Bone, Jr., CPA Executive Vice President and Chief Financial Officer FNCB Bank (570) 348-6419 james.bone@fncb.com
Categories: State

Republic Bank Hires Evesboro Store Manager

Banking - 31 October 2018 - 10:47am

PHILADELPHIA, Oct. 31, 2018 (GLOBE NEWSWIRE) -- Republic First Bancorp, Inc. (NASDAQ: FRBK), the parent company of Republic Bank, has announced that Christopher Webb will serve as Store Manager for its new Evesboro (Marlton), NJ location, slated to open in December 2018. In this role, Webb will be responsible for training and supervising the team to deliver Republic Bank’s legendary customer service, while engaging with the business community.

“With nearly 20 years of banking experience in South Jersey, Christopher has proven himself as a successful leader and a team player,” said Harry Madonna, Chairman and CEO of Republic Bank. “We are excited to continue growing our presence throughout the region, by offering customers a better way to fulfill all their banking needs."

Webb enjoys extensive financial experience in the South Jersey region, previously holding senior positions at Bank of America, Citizens Bank and Sun National Bank. Throughout his career, he has earned an impressive track record for driving operational excellence, developing strong lending relationships and helping to foster a vibrant employee culture focused on customer service.

“Republic Bank’s brand is loved by customers throughout the region, and I’m excited to continue the momentum with the opening of the Evesboro store,” said Webb. “Republic embodies fanatic customer service and going above and beyond to support small businesses – traits I know will be embraced by our community.”

Building on the momentum of its aggressive growth plan, referred to as "The Power of Red is Back," Republic Bank continues to rapidly expand its regional footprint.  As one of the largest Philadelphia-based retail banking institutions with 23 convenient locations, Republic Bank stores are open seven days a week, 361 days a year, with extended lobby and drive-thru hours, providing customers with the longest hours of any bank in the area. The bank also offers absolutely free checking, free coin counting, ATM/Debit cards issued on the spot and access to more than 55,000 surcharge free ATMs worldwide via the Allpoint network.

About Republic Bank

Republic Bank is the operating name for Republic First Bank. Republic First Bank is a full-service, state-chartered commercial bank, whose deposits are insured up to the applicable limits by the Federal Deposit Insurance Corporation (FDIC). The Bank provides diversified financial products through its 23 offices located in Burlington, Camden, and Gloucester Counties in New Jersey and Bucks, Delaware, Montgomery and Philadelphia Counties in Pennsylvania. The bank also offers a wide range of residential mortgage products through its mortgage division, Oak Mortgage Company. For more information about Republic Bank, please visit www.myrepublicbank.com.

Forward Looking Statements

Republic First Bancorp, Inc. ("the Company") may from time to time make written or oral "forward-looking statements", including statements contained in this release and in the Company's filings with the Securities and Exchange Commission.  These forward-looking statements include statements with respect to the Company's beliefs, plans, objectives, goals, expectations, anticipations, estimates, and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors, many of which are beyond the Company's control. These factors include competition, timing, credit risks of lending activities, changes in general economic conditions, price pressures on loan and deposit products, and other factors detailed from time to time in the Company's filings with the Securities and Exchange Commission. The words "may", "could", "should", "would", "believe", "anticipate", "estimate", "expect", "intend", "plan", and similar expressions are intended to identify forward-looking statements.  All such statements are made in good faith by the Company pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The Company does not undertake to update any forward-looking statement, whether written or oral that may be made from time to time by or on behalf of the Company, except as may be required by applicable law or regulations.

CONTACT
Carly Buggy
cbuggy@briancom.com
484-385-2934 (office)

Categories: State

Live Oak Bank and Argent Financial Group Form Strategic Alliance for Funeral Home Trust Services

Banking - 31 October 2018 - 9:00am

WILMINGTON, N.C., Oct. 31, 2018 (GLOBE NEWSWIRE) -- Live Oak Bank, a leader in funeral home and cemetery lending, announced today that it has entered a purchase and sale agreement with Argent Financial Group, a leader in trust services, to divest its pre-need funeral trust business.

Live Oak Bank remains dedicated to funeral home and cemetery lending and this agreement allows the bank to streamline operations to better service customers.

This relationship allows Live Oak Bank and Argent to create a strategic alliance to cross-refer lending and trust business to more efficiently provide services to those in the funeral home and cemetery industry, with each entity focusing on its unique expertise.

While the financial terms of the agreement were not disclosed, the sale is not material to Live Oak Bank’s results. The transition is expected to be completed by December 31, 2018.

Live Oak continues to offer trust and estate planning services for individuals and families through Live Oak Private Wealth, its SEC registered investment advisor company.

To learn more about Live Oak Bank, visit www.liveoakbank.com.

About Live Oak Bank
Live Oak Bank, a subsidiary of Live Oak Bancshares, Inc. (Nasdaq: LOB), is a digitally focused, FDIC-insured bank serving customers across the country. Live Oak brings efficiency and excellence to the banking process, without branches, by using a focused approach to technology and innovation. To learn more, visit www.liveoakbank.com.

About Argent Financial Group
Argent Financial Group (Argent) is a private fiduciary wealth management firm. Responsible for over $19 billion in client assets, Argent provides individuals, families, institutions, and businesses with a broad range of wealth management services including trust administration, investment management, family office services, retirement plan and charitable organization administration, mineral management, and financial planning. Argent was recently named to the Inc. 5000 list of the fastest-growing companies in the U.S. For more information, visit www.ArgentFinancial.com.

Contact:
Claire Parker, Senior Public Relations Manager       
910.597.1592                                                             
claire.parker@liveoak.bank               

Brooks Campany, Vice President
318.243.4275
bcampany@argenttrust.com                          

Categories: State

The First of Long Island Corporation Announces Approval of Stock Repurchase Program

Banking - 30 October 2018 - 10:00am

GLEN HEAD, N.Y., Oct. 30, 2018 (GLOBE NEWSWIRE) -- The First of Long Island Corporation (Nasdaq: FLIC), the parent company of The First National Bank of Long Island, today announced that its Board of Directors has approved a stock repurchase program for shares of its common stock in an amount up to $20 million.  The Company may repurchase the shares from time to time through open market purchases, privately negotiated transactions or in any other manner that is compliant with applicable securities laws.

The stock repurchase program does not obligate the Company to purchase shares. There is no guarantee as to the exact number of shares that may be repurchased by the Company pursuant to this program, which is subject to market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate.

About The First of Long Island Corporation

The First of Long Island Corporation is the bank holding company for The First National Bank of Long Island. The Bank serves the financial needs of privately owned businesses, professionals, consumers, public bodies and other organizations primarily in Nassau and Suffolk Counties, Long Island, and the boroughs of New York City and currently has fifty-two branches in Nassau and Suffolk Counties, Long Island and the boroughs of Queens, Brooklyn and Manhattan.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of that term as set forth in Rule 175 of the Securities Act of 1933 and Rule 3b-6 of the Securities Exchange Act of 1934. Such statements are generally contained in sentences including the words “may” or “expect” or “could” or “should” or “would” or “believe” or “anticipate.” The Company cautions that these forward-looking statements are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements, including those risk factors described in the Company’s Annual Report on Form 10-K. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.

For More Information Contact:
Mark D. Curtis, SEVP, CFO and Treasurer
(516) 671-4900, Ext. 7413

Categories: State

Square 1 Bank Announces Credit Facility to New State Capital Partners

Banking - 30 October 2018 - 8:00am

NEW YORK, Oct. 30, 2018 (GLOBE NEWSWIRE) -- Square 1 Bank, a division of Pacific Western Bank, today announced that it has provided a $45 million credit facility to existing client New State Capital Partners, a private equity firm specializing in middle-market investments. Proceeds from the facility will be used to secure new investment opportunities and bridge timing between capital calls.

Located in Larchmont, New York, New State Capital Partners invests in companies across a variety of sectors including business services, industrials and healthcare services. New State’s typical investment ranges between $10 million to $50 million of equity in companies with $8 million to $30 million of EBITDA.
   
“We strive to be a different kind of private equity firm with a more flexible mandate and more nimble approach to investing, focused on being good partners,” said David Blechman, founder and principal of New State. “We are proud of the strong group of portfolio companies we have invested in to date and are thankful to our financial services partner Square 1 for helping us achieve our goals.”

“The team at New State Capital Partners has seen great traction with their focused investment strategy,” added Mike Breaux, vice president in Square 1’s Equity Funds Group. “Square 1 is pleased to support New State and looks forward to expanding the relationship into their second fund.”

About Square 1 Bank
Square 1 Bank is a division of Pacific Western Bank, a Los Angeles-based commercial bank with over $24 billion in assets. A full service financial services partner to entrepreneurs and their investors, Square 1 provides clients flexible resources and attentive service to help their companies grow. Square 1 offers a broad range of venture debt, treasury and cash management solutions through offices in top innovation centers: Atlanta, Austin, the Bay Area, Boston, Chicago, Denver, Durham, Los Angeles, Minneapolis, New York, San Diego, Seattle, and Washington, DC. Pacific Western Bank is a wholly-owned subsidiary of PacWest Bancorp (NASDAQ:PACW). For more information, visit www.square1bank.com.

About New State Capital Partners
New State Capital Partners, LLC is an entrepreneurial-minded private equity firm that strives to be more nimble, more decisive and more cooperative than larger, institutional firms. New State prides itself on a long-term outlook, approaching each potential investment as an opportunity to create lasting and valuable relationships, rather than as an exercise in meeting rigid investing criteria. The firm is very flexible about the structure of its investment and focuses on growth and add-on investment. New State invests in market-leading companies with $8 million to $30 million of EBITDA in the areas of business services, healthcare services and industrials, and has approximately $700 million in assets under management. New State and its affiliates have invested in 17 companies since January 2014. For more information visit www.newstatecp.com.

Media Contact:
Square 1 Bank, a division of Pacific Western Bank
Laura Piggott
919.597.7466
lpiggott@square1bank.com

Categories: State

CAB Financial Corporation Reports its Third Quarter 2018 Results

Banking - 30 October 2018 - 7:00am

SPARTANBURG, S.C., Oct. 30, 2018 (GLOBE NEWSWIRE) -- CAB Financial Corporation (OTCQX: CABF) (the “Corporation”), holding company for Carolina Alliance Bank, today reported its third quarter 2018 consolidated financial results.  Net income was $3.6 million, or $0.49 per diluted common share, for the nine months ended September 30, 2018, as compared to net income of $3.0 million, or $0.42 per diluted common share, for the nine months ended September 30, 2017.  For the three months ended September 30, 2018, net income was $1.3 million, or $0.18 per diluted common share, as compared to $0.9 million, or $0.13 per diluted common share, for the three months ended September 30, 2017.

Gross loans and leases increased by $62.5 million to $577.8 million on September 30, 2018 from $515.3 million on September 30, 2017, and total assets increased by $58.7 million to $744.6 million at September 30, 2018 from $685.9 million at September 30, 2017.  Total deposits increased to $618.3 million on September 30, 2018 from $557.3 million on September 30, 2017, an increase of $61.0 million. 

“We are very pleased with our strong performance this year, both in loan growth, which has continued at a steady pace, and interest rate management in a challenging rising rate environment,” said John Kimberly, President and Chief Executive Officer.  “In addition, we are excited about our upcoming merger with Park National Corporation, which was announced in September.  We believe this merger will offer enhanced opportunities and value for our customers, shareholders, and communities.”

Total shareholders’ equity was 10.9% and 11.2% of total assets, or $81.1 million and $76.9 million, as of September 30, 2018 and 2017, respectively.  Book value per common share was $10.99 as of September 30, 2018, compared to $10.69 as of September 30, 2017.  The Bank’s capital levels continue to exceed the levels required by regulatory standards to be classified as “well capitalized,” which is the highest of the five regulator-defined capital categories used to describe an institution’s capital position.

Non-performing assets were $2.9 million, or 0.39% of total assets, at September 30, 2018, as compared to $3.2 million, or 0.46% of total assets, at September 30, 2017. 

The allowance for loan and lease losses stood at $5.7 million, or 0.98% of gross loans at September 30, 2018 as compared to $5.4 million, or 1.04% of gross loans at September 30, 2017.  Net loan charge-offs for the nine months ended September 30, 2018 were $46,265 as compared to net loan recoveries of $18,966 for the nine months ended September 30, 2017. 

“We believe the upcoming merger with Park National will provide a stronger and broader foundation from which to support our communities,” said Terry Cash, Chairman.  “We look forward to being able to better serve our customers through additional product offerings and higher lending limits, while retaining local management and staying true to the Carolina Alliance mission.”

For a copy of the letter to shareholders reporting in further detail our third quarter 2018 financial results, please go to our website at www.carolinaalliancebank.com, select the “About” link located at the top of the homepage, then scroll down to see “REVIEW INVESTOR RELATIONS” and select “Learn More.”  For other information about CAB Financial or Carolina Alliance, please call (864) 208-BANK (2265) or visit our website.

Note:
Certain statements in this release contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective.  Such forward-looking statements are subject to risks, uncertainties, and other factors, such as an economic downturn nationally or in the local markets we serve; competitive pressures among depository and other financial institutions; the rate of delinquencies and amount of charge-offs; the level of allowance for loan loss; the rates of loan growth or adverse changes in asset quality in the bank’s loan portfolios; and changes in the U.S. legal and regulatory framework, including the effect of financial reform legislation on the banking industry, any of which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.  Forward-looking statements in this release also include statements regarding CABF Financial’s and Park National’s expectations regarding the benefits of the merger, and when the merger will be completed. The accuracy of such forward-looking statements could be affected by factors beyond CABF Financial’s and Park National’s control, including, but not limited to, difficulties experienced in the integration of the businesses of CABF Financial and Park National, delays in the receipt of regulatory or shareholder approvals that must be received before the merger may be completed, and delays in the satisfaction or waiver of other remaining conditions to the consummation of the merger.

CONTACT:
John D. Kimberly
(864) 208-2265

Categories: State

Horizon Bancorp, Inc. and Salin Bancshares, Inc. Sign Merger Agreement

Banking - 29 October 2018 - 5:35pm

MICHIGAN CITY, Ind. and INDIANAPOLIS, Oct. 29, 2018 (GLOBE NEWSWIRE) -- Horizon Bancorp, Inc. (NASDAQ GS: HBNC, “Horizon”) and Salin Bancshares, Inc. (“Salin”), a privately held company, today announced that they have executed a definitive agreement whereby Horizon will combine with Salin, and Horizon’s wholly-owned subsidiary, Horizon Bank, will combine with Salin’s wholly-owned subsidiary, Salin Bank and Trust Company (“Salin Bank”). This merger will enhance Horizon’s core deposit base, expand Horizon’s presence throughout Central and Northeast Indiana, add new offices in the growth markets of Fort Wayne and Columbus, Indiana, and expand its existing presence in the vibrant markets of Indianapolis and Lafayette, Indiana.

In the merger, shareholders of Salin will receive $87,417.17 in cash and 23,907.5 shares of Horizon common stock for each share of Salin common stock, which, based upon the October 26, 2018 Horizon closing price of $16.95 per share, the transaction has an implied valuation of approximately $135.3 million.

Salin is a community bank holding company headquartered in Indianapolis, Indiana, with approximately $918.4 million in total assets as of September 30, 2018. Salin Bank, which can trace its origins to the Farmers & Merchants State Bank of Logansport, Indiana, founded in 1902, is the third largest privately held bank in Indiana, with 20 banking centers in 10 Indiana counties, serving Columbus, Delphi, Edinburgh, Fishers, Flora, Fort Wayne, Galveston, Gas City, Kokomo, Lafayette, Logansport, Marion, West Lafayette, and Indianapolis.

Horizon is a community bank holding company headquartered in Michigan City, Indiana with total assets of $4.2 billion as of September 30, 2018. Horizon Bank has continually operated since 1873, with 66 offices extending throughout northern and central Indiana and southern, central, and the Great Lakes Bay regions of Michigan.

“Horizon is enthusiastic about this merger, as it complements our current Indiana locations and provides entry into the attractive growth markets of Fort Wayne and Columbus, Indiana. In addition, Salin Bank’s presence in Indianapolis and Lafayette, Indiana will add to Horizon’s current footprint in these dynamic markets,” said Chief Executive Officer, Craig M. Dwight. “We fully expect that our complementary product offerings and commitment to the local communities and employees will result in success for the shareholders of the combined company.”

Mr. Dwight continued, “Horizon’s focus is to continue to expand in the States of Indiana and Michigan with an emphasis on good core deposit growth, enhanced operational leverage through mass and scale, and investment in growth markets. Indiana and Michigan are well run states, with the leadership in each State focused on the future and building better quality of life for their citizens. The Salin franchise fits well into Horizon’s strategic plan and bodes well for capturing market share.”

James Alender, President and Chief Executive Officer of Salin Bank, stated, “Horizon is a natural fit for Salin due to our complementary markets, common values, and support for the local communities we serve. This merger will provide Salin new opportunities to increase the depth of products and services we can offer to our customers, including higher lending limits, robust residential mortgage products, and enhanced mobile and internet banking. Salin has a wonderful history and commitment to excellence, which is our strength and the foundation under everything we do. This will be key in supporting the merger with Horizon.”  

On behalf of the Salin family, Mr. William N. Salin stated, “I have taken tremendous pride in serving Hoosiers throughout my lifetime, and, specifically, their banking needs throughout our family’s ownership in Salin Bank. We are pleased that our staff will flourish and our customers will be well served in joining Horizon, and that the Salin family will continue to be heavily invested in such a fine Indiana community bank.”

The transaction is expected to be completed in the first quarter of 2019, subject to approval by bank regulatory authorities and the shareholders of Salin, as well as the satisfaction of other customary closing conditions. The banks’ combined operations will continue to operate under the Horizon Bank name. 

Horizon was advised by Stephens, Inc., Renninger & Associates, LLC and the law firm of Barnes & Thornburg LLP. Salin was advised by Hovde Group, LLC and the law firm of SmithAmundsen LLC.

About Horizon Bancorp, Inc.
Horizon Bancorp, Inc. is an independent, commercial bank holding company serving northern and central Indiana, and southwest, central and the Great Lakes Bay regions of Michigan through its commercial banking subsidiary, Horizon Bank. Horizon Bancorp, Inc. may be reached online at www.horizonbank.com. Its common stock is traded on the NASDAQ Global Select Market under the symbol HBNC.

About Salin Bancshares, Inc.
Salin Bancshares, Inc. is an independent, commercial bank holding company serving central and northeast Indiana through its wholly-owned commercial banking subsidiary, Salin Bank and Trust Company. Salin Bancshares, Inc. may be reached online at www.salin.com. Salin is a privately held company.

Additional Information
In connection with the proposed merger, Horizon will file with the SEC a Registration Statement on Form S-4 that will include a proxy or information statement, as well as other relevant documents concerning the proposed transaction. Shareholders and investors are urged to read the registration statement and the proxy or information statement regarding the merger when it becomes available and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they will contain important information.

The proxy or information statement and other relevant materials (when they become available), and any other documents Horizon has filed with the SEC, may be obtained free of charge at the SEC’s website at www.sec.gov. In addition, investors and security holders may obtain free copies of the documents Horizon has filed with the SEC from Horizon at www.horizonbank.com under the tab “About Us – Investor Relations – Documents – SEC Filings.” Alternatively, these documents, when available, can be obtained free of charge from Horizon upon written request to Horizon Bancorp, Inc., attention: Shareholder Relations, 515 Franklin Street, Michigan City, Indiana 46360 or by calling (219) 879-0211. The information available through Horizon’s website is not and shall not be deemed part of this press release or incorporated by reference into other filings Horizon makes with the SEC. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.

Horizon and Salin and certain of their directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Salin in connection with the proposed merger. Information about the directors and executive officers of Horizon is set forth in Horizon’s Annual Report on Form 10-K filed with the SEC on February 28, 2018, and in the proxy statement for Horizon’s 2018 annual meeting of shareholders, as filed with the SEC on March16, 2018. Additional information regarding the interests of these participants and any other persons who may be deemed participants in the transaction may be obtained by reading the proxy or information statement regarding the proposed merger when it becomes available. Free copies of these documents may be obtained as described in the preceding paragraph

Forward Looking Statements
This press release may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon. For these statements, Horizon 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 Horizon, 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 Horizon’s reports filed with the Securities and Exchange Commission, including those described in its Form 10-K and the following: the possibility that the merger does not close when expected or at all because required regulatory, shareholder or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all; the risk that the benefits from the transaction may not be fully realized or may take longer to realize than expected, including as a result of changes in general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which Horizon and Salin operate; the ability to promptly and effectively integrate the businesses of Horizon Bank and Salin Bank; the reaction of the companies’ customers, employees and counterparties to the transaction; and the diversion of management time on merger-related issues. Undue reliance should not be placed on the forward-looking statements, which speak only as of the date hereof. Horizon 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.

Horizon Contact Information:

Craig M. Dwight
Chairman & Chief Executive Officer
Phone: (219) 873-2725
Fax: (219) 874-9280

Mark E. Secor
Executive Vice President &
Chief Financial Officer
Phone: (219) 873-2611
Fax: (219) 874-9280


Salin Contact Information:

James P. Alender
President & Chief Executive Officer
Phone (317) 452-8181
Fax (317) 452-8139

Chad Key
Executive Vice President &
Chief Financial Officer
Phone: (317) 452-8037  
Fax: (317) 452-8139



 

Categories: State

Oak Ridge Financial Services, Inc. Announces Third Quarter 2018 Earnings and a 10% Stock Dividend

Banking - 29 October 2018 - 3:43pm

OAK RIDGE, N.C., Oct. 29, 2018 (GLOBE NEWSWIRE) -- Oak Ridge Financial Services, Inc. (“Oak Ridge”; the “Company”) (OTCPink: BKOR), the parent company of Bank of Oak Ridge (the “Bank”), announced unaudited financial results for the third quarter of 2018 and a 10% stock dividend, payable November 30, 2018 to stockholders of record as of November 15, 2018.

Third Quarter 2018 Highlights

  • Net income available to common stockholders of $976,000 for the three months ended September 30, 2018, up $169,000, or 20.9%, from $807,000 for the same period in 2017  
  • Basic and diluted earnings per share of $0.41 for the three months ended September 30, 2018, up $0.07 cents, or 20.6%, from $0.34 for the same period in 2017
  • Annualized return on average common stockholders’ equity of 11.70% for the three months ended September 30, 2018, compared to 10.82% for the same period in 2017
  • Period end loans of $356.8 million, up 5.8% (7.8% annualized) from December 31, 2017
  • Period end deposits of $370.4 million, up 2.4% (3.4% annualized) from December 31, 2017
  • Period end noninterest-bearing deposits of $55.9 million, up 6.7% (8.9% annualized) from December 31, 2017
  • Nonperforming assets of $2.8 million, unchanged from December 31, 2017

Tom Wayne, President and Chief Financial Officer, reported, “We are very pleased with our return on average stockholders’ equity during the third quarter of 2018, and the year over year growth in our pretax net income, after tax net income and earnings per share. The Company experienced slower loan and noninterest-bearing deposit growth in the third quarter of 2018 compared to the first six months of 2018 as a result of a decrease in loan opportunities. Our net interest margin decreased 14 basis points from the second quarter of 2018, mostly due to the increased competition for deposits as a result of higher short term rates. However, I am very pleased with our overall performance in the first nine months of 2018 and thank our stockholders, our dedicated employees, our Board of Directors, and our clients for their continued support. The 10% stock dividend reflects the continued confidence we have in our financial performance and our commitment to enhancing shareholder value in our Company.”

The Company’s Board of Directors authorized the issuance of a 10% stock dividend to shareholders payable November 30, 2018 to shareholders of record as of November 15, 2018. Cash-in-lieu of fractional shares will be calculated based on the stock’s market value at the close of business on November 15, 2018.

The Bank’s capital ratios remain strong and exceeded all minimum regulatory requirements at September 30, 2018. As of September 30, 2018, stockholders’ equity was 7.4% of total assets, compared to 7.2% as of December 31, 2017. Book value per common share was $13.85 as of September 30, 2018, compared to $12.66 as of September 30, 2017.

With respect to the consolidated statement of operations for the three months ended September 30, 2018, net interest income was $3.9 million, which was an increase from $3.8 million during the same period in 2017. For the three months ended September 30, 2018, the net interest margin was 3.76% compared to 3.96% for the same period in 2017, a decrease of 20 basis points. For the nine months ended September 30, 2018, net interest income was $11.7 million, which was an increase from $10.7 million during the same period in 2017. The net interest margin was 3.83% for the nine months ended September 30, 2018, compared to 3.80% for the same period in 2017, an increase of 3 basis points.

The Company recorded negative provisions for loan losses of $7,000 and $40,000 for the three months ended September 30, 2018 and 2017, respectively. For the nine months ended September 30, 2018 the Company recorded a provision for loan losses of $59,000 compared with a negative provision of $60,000 for the same period in 2017.  The allowance for loan losses as a percentage of total loans was 1.00% at September 30, 2018 compared to 1.04% at December 31, 2017. The need to supplement the allowance for loan losses in 2018 was eliminated due to an improvement in various quantitative and qualitative factors used in the determination of the allowance. Nonperforming assets represented 0.63% of total assets at September 30, 2018, unchanged from December 31, 2017.

Noninterest income totaled $745,000 for the three months ended September 30, 2018, compared with $696,000 for the same period in 2017, a increase of $49,000 or 7.0%. The biggest contributor to the increase were gains on sale of SBA loans of $40,000 during the three months ended September 30, 2018, with no gains during the same period in 2017. Noninterest income totaled $2.4 million for the nine months ended September 30, 2018, compared with $2.0 million for the same period in 2017, an increase of $427,000 or 21.7%. The biggest contributor to the increase were gains on sale of SBA loans of $345,000 during the nine months ended September 30, 2018, compared to $61,000 during the same period in 2017.

Noninterest expense totaled $3.5 million in the three months ended September 30, 2018, an increase of $77,000, or 2.3%, from the same period in 2017. Two expense categories primarily contributed to the overall increase in noninterest expense. Salaries increased due to higher incentive payments in 2018 compared to 2017 and salary merit increases that took effect on January 1, 2018. Also, employee benefits increased due to lower post-retirement benefit costs in 2017 compared to 2018. Increases in salaries and employee benefits during the three months ended September 30, 2018 were partially offset by a decrease in professional and advertising expenses during the same period of time. Noninterest expense totaled $10.5 million in the nine months ended September 30, 2018, an increase of $828,000, or 8.5%, from 2017. Several expense categories contributed to the overall increase in noninterest expense. Salaries increased due to higher incentive payments in 2018 compared to 2017, salary merit increases that took effect on January 1, 2018, and commissions related to the gain on sale of SBA loans in 2018. Employee benefits increased due to lower post-retirement benefit costs in 2017 compared to 2018. Also, other expenses increased due to higher check and debit card losses in 2018 compared to 2017, as well as higher expenses in 2018 related to the gain on sale of SBA loans.

The enactment of the new federal tax law, signed in late December 2017, positively affected net income for the Company for the three and nine-month period ending September 30, 2018. The law reduced the corporate tax rate to 35% to 21%.

About Oak Ridge Financial Services, Inc.
Oak Ridge Financial Services, Inc. (OTCPink:BKOR) is the holding company for Bank of Oak Ridge. Bank of Oak Ridge is an employee-owned community bank that delivers personal attention and convenience for every client. Bank of Oak Ridge has been named Best Bank in the Triad six years in a row, a 2017 Top Workplace, one of the Triad’s Healthiest Employers, and was the winner of the Better Business Bureau’s Torch award for ethics in 2016. We offer a complete range of banking services for individuals and businesses. Bank of Oak Ridge is a member of the FDIC and an Equal Housing Lender.

Banking Services | ATM Usage Worldwide | Mobile Banking | Online Billpay | Remote Deposit | Checking | Savings | Mortgage | Insurance | Lending | Wealth Management

Visit Us | To learn more, visit us during our extended weekday and Saturday hours at one of our convenient locations in Greensboro, Summerfield and Oak Ridge, North Carolina, or call 336.644.9944, or online at www.BankofOakRidge.com.

Forward-looking Information

This earnings release contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Company.  These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of management of the Company and on the information available to management at the time that these disclosures were prepared. These statements can be identified by the use of words like “expect,” “anticipate,” “estimate” and “believe,” variations of these words and other similar expressions.  Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements.  Factors that could cause actual results to differ materially include, but are not limited to, (1) competition in the Company’s markets, (2) changes in the interest rate environment, (3) general national, regional or local economic conditions may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and the possible impairment of collectability of loans, (4) legislative or regulatory changes, including changes in accounting standards, (5) significant changes in the federal and state legal and regulatory environment and tax laws, and (6) the impact of changes in monetary and fiscal policies, laws, rules and regulations.  The Company undertakes no obligation to update any forward-looking statements.


Oak Ridge Financial Services, Inc.
Consolidated Balance Sheets
September 30, 2018 (unaudited) and December 31, 2017 (audited)
(Dollars in thousands)

    2018 2017Assets     Cash and due from banks$8,296 $8,673Interest-bearing deposits with banks 9,115  18,497Federal Funds sold 1,451  2,298   Total cash and cash equivalents 18,862  29,468Securities available-for-sale 41,306  43,375Securities held-to-maturity (fair values of $1,083 in 2018 and $1,257 in 2017) 938  1,108Federal Home Loan Bank Stock, at cost 1,087  1,133Loans, net of allowance for loan losses of $3,604 in 2018 and $3,538 in 2017 356,806  337,105Property and equipment, net 9,398  8,631Foreclosed assets -  4Accrued interest receivable 1,454  1,388Bank owned life insurance 5,712  5,635Other assets 5,325  2,865   Total assets$440,888 $430,712      Liabilities and Stockholders’ Equity     Liabilities  Deposits:  Noninterest-bearing$55,852 $52,361Interest-bearing 314,508  309,360      Total deposits 370,360  361,721Short-term borrowings 16,500  18,500Long-term borrowings 1,325  1,000Junior subordinated notes related to trust preferred securities 8,248  8,248Subordinated debentures 5,574  5,553Accrued interest payable 228  145Other liabilities 5,977  4,460      Total liabilities 408,212  399,627      Stockholders’ equity  Common stock, no par value; 50,000,000 shares authorized; 2,358,518 and 2,360,680 issued and outstanding
in 2018 and 2017, respectively 20,320  20,413Retained earnings 12,169  9,784Accumulated other comprehensive income 187  888   Total stockholders’ equity 32,676  31,085   Total liabilities and stockholders’ equity$440,888 $430,712      


Oak Ridge Financial Services, Inc.
Consolidated Statements of Operations
For the three months and nine months ended September 30, 2018 and 2017 (Unaudited)
(Dollars in thousands except per share data)                                                                                           

                Three months ended September 30, Nine months ended September 30, 2018 2017 2018
 2017Interest and dividend income    Loans and fees on loans$4,583  $4,088  $13,199 $11,606 Interest on deposits in banks 83   44   224  101 Federal Home Loan Bank stock dividends 14   15   44  36 Investment securities 354   362   1,068  1,004 Total interest and dividend income 5,034   4,509   14,535  12,747      Interest expense    Deposits 826   495   2,095  1,360 Short-term and long-term debt 286   232   774  665 Total interest expense 1,112   727   2,869  2,025 Net interest income 3,922   3,782   11,666  10,722 Provision for loan losses (7)  (40)  59  (60)Net interest income after provision for loan losses 3,929   3,822   11,607  10,782      Noninterest income    Service charges on deposit accounts 167   163   500  462 Gain on sale of securities -   -   -  (4)Gain on sale of mortgage loans 59   52   153  88 Investment commissions 3   4   21  29 Insurance commissions 85   81   228  216 Gain on sale of SBA loans 40   -   345  61 Fee income from accounts receivable financing 47   53   159  142 Debit card interchange income 231   223   669  649 Income earned on bank owned life insurance 27   25   77  73 Other service charges and fees 86   84   243  252 Total noninterest income 745   696   2,395  1,968      Noninterest expense    Salaries 1,683   1,583   5,092  4,626 Employee benefits 319   216   888  571 Occupancy expense 196   190   626  597 Equipment expense 185   146   513  422 Loss (gain) on sale of property and equipment -   (5)  -  (5)Data and item processing 403   447   1,214  1,310 Professional and advertising 141   294   559  732 Stationary and supplies 76   79   180  186 Net cost of foreclosed assets -   -   2  6 Impairment loss on securities 11   6   15  19 Telecommunications expense 116   102   362  339 FDIC assessment 53   62   163  176 Accounts receivable financing expense 15   17   51  47 Other expense 268   252   856  667 Total noninterest expense 3,466   3,389   10,521  9,693      Income before income taxes 1,208   1,118   3,481  3,057 Income tax expense 232   311   642  853 Net income and net income available to common stockholders$976  $807  $2,839 $2,204 Basic net income per common share$0.41  $0.34  $1.19 $0.93 Diluted income per common share$0.41  $0.34  $1.19 $0.93 Basic weighted average common shares outstanding 2,374,971   2,360,680   2,383,007  2,364,713 Diluted weighted average common shares outstanding 2,383,439   2,371,239   2,391,313  2,375,092   


Oak Ridge Financial Services, Inc.
Selected Quarterly Financial Ratios (unaudited)

Selected Financial DataSeptember 30, 2018June 30, 2018March 31, 2018December 31, 2017September 30, 2017June 30, 2017Return on average common stockholders' equity1 11.70% 11.42% 12.44% 8.88% 10.82% 10.82%Tangible book value per share$13.85 $13.54 $13.06 $13.17 $12.66 $12.28 Return on average assets1 0.85% 0.85% 0.90% 0.65% 0.77% 0.76%Net interest margin1 3.76% 3.90% 3.83% 3.75% 3.96% 3.91%Net interest income to average assets1 3.53% 3.68% 3.57% 3.59% 3.62% 3.58%Efficiency ratio 74.3% 75.0% 75.1% 73.2% 75.9% 76.4%Nonperforming assets to total assets 0.63% 0.63% 0.65% 0.65% 0.71% 0.70%

1Annualized

Contact: Tom Wayne, President and CFO
Phone: 336-644-9944

Categories: State

Northrim BanCorp Earns $5.3 Million, or $0.75 per Diluted Share, in 3Q18; Reflects Solid Contribution from Its Core Community Banking Franchise

Banking - 29 October 2018 - 3:15pm

ANCHORAGE, Alaska, Oct. 29, 2018 (GLOBE NEWSWIRE) -- Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the "Company") today reported earnings of $5.3 million, or $0.75 per diluted share, for the third quarter of 2018 and $15.2 million, or $2.17 per diluted share, for the first nine months of 2018. Strong contributions from the community banking franchise, with slightly decreased volumes in its mortgage banking division, contributed to solid third quarter and year-to-date profits.

“We continue to benefit from the rising interest rate environment, lower corporate tax rates and the planned expansion of the Alaska natural resources infrastructure,” said Joe Schierhorn, President, CEO and COO. Earlier this month ConocoPhillips announced that “oil is flowing at the Greater Mooses Tooth No. 1 drill site, part of the National Petroleum Reserve-Alaska.” According to a recent article in Petroleum News, “the project constitutes one of a chain of developments that ConocoPhillips is undertaking, progressively stepping out west into the northeastern part of the NPR-A from the Colville River delta.”

In the third quarter and nine-month period ending September 30, 2017, Northrim recognized a pre-tax gain of $4.4 million on the sale of its interest in Northrim Benefits Group and operating income from that business of $2.5 million, respectively, with no contribution from this divested subsidiary in 2018. These revenues were partially offset in the first nine months of 2017 by a provision for loan losses of $3.2 million.

Third Quarter 2018 Highlights:

  • Total revenue, which includes net interest income plus other operating income, was $24.5 million in the third quarter of 2018, compared to $23.3 million in the second quarter of 2018, and $28.8 million in the third quarter a year ago.
    — Community Banking provided 74% of total revenues and 94% of earnings in the third quarter of 2018.
    — Home Mortgage Lending provided 26% of total revenues and 6% of third quarter earnings.
  • Net interest income in the third quarter of 2018 increased 6% to $15.8 million from $14.9 million in the third quarter a year ago, mainly due to the higher yields on the loan and investment portfolios and was also up 5.5% compared to $15.0 million in the preceding quarter.
  • Net interest margin on a tax equivalent basis ("NIMTE")* expanded to 4.74% in the third quarter of 2018, an 18-basis-point improvement, compared to the preceding quarter and a 40-basis-point improvement compared to the third quarter a year ago.
  • Return on average assets was 1.40% and return on average equity was 10.27% for the third quarter of 2018.
  Financial HighlightsThree Months Ended(Dollars in thousands, except per share data)September 30,
2018June 30, 2018March 31, 2018December 31,
2017September 30,
2017Total assets$1,502,673 $1,470,440 $1,524,741 $1,518,596 $1,522,784 Total portfolio loans$982,007 $967,702 $967,575 $954,953 $988,490 Average portfolio loans$984,914 $963,724 $955,718 $980,351 $1,003,751 Total deposits$1,233,268 $1,205,521 $1,260,790 $1,258,283 $1,258,317 Average deposits$1,223,997 $1,217,903 $1,233,745 $1,254,566 $1,262,808 Total shareholders' equity$203,242 $199,456 $194,973 $192,802 $194,427 Net income attributable to Northrim BanCorp$5,264 $5,830 $4,062 $214 $5,523 Diluted earnings per share$0.75 $0.84 $0.58 $0.03 $0.79 Return on average assets1.40%1.58%1.10%0.06%1.44%Return on average shareholders' equity10.27%11.79%8.43%0.43%11.25%NIM4.69%4.50%4.28%4.25%4.28%NIMTE*4.74%4.56%4.33%4.31%4.34%Efficiency ratio73.82%71.19%77.22%80.92%61.40%Total shareholders' equity/total assets13.53%13.56%12.79%12.70%12.77%Tangible common equity/tangible assets*12.58%12.60%11.85%11.75%11.83%Book value per share$29.52 $29.02 $28.37 $28.06 $28.37 Tangible book value per share*$27.17 $26.66 $26.01 $25.70 $26.00 Dividends per share$0.27 $0.24 $0.24 $0.22 $0.22 * References to NIMTE, tangible book value per share, tangible common equity and tangible assets (all of which exclude intangible assets) represent non-GAAP financial measures. Management has presented these non-GAAP measurements in this earnings release, because it believes these measures are useful to investors. See the end of this release for reconciliations of these non-GAAP financial measures to GAAP financial measures. 

Alaska Economic Update
(Note: sources for information included in this section are included on page 10.)

Alaska’s Department of Labor and Workforce Development released employment numbers for August 2018. The employment rate is down 0.6% from August 2017 and the unemployment rate sits at 6.7%, down two-tenths of a point from July 2018. “While rising oil prices are supporting long-term investment in Alaska’s natural resources, Alaska’s economy is slowly emerging from the recession that began in late 2014,” noted Schierhorn.

The price for a single-family home in Alaska has remained stable during the recession. We believe that this is due to a few different factors. Low interest rates, migration patterns, measured selling and buying, and controlled building were likely part of the reasons for the stable prices.

“The rising price of oil and news from successful exploratory wells on the North Slope by ConocoPhillips are bright spots for the Alaska economy, as expanded drilling activity is expected to bring jobs, increase tax revenues and generate opportunities for service providers throughout the state,” Schierhorn noted.

Northrim Bank sponsors the Alaskanomics blog to provide news, analysis, and commentary on Alaska’s economy. Join the conversation at Alaskanomics.com, or for more information on the Alaska economy, visit: www.northrim.com and click on the “Business Banking” link and then click “Learn.” Information from our website is not incorporated into, and does not form, a part of this earnings release.

Review of Income Statement

Consolidated Income Statement

In the third quarter of 2018, Northrim generated a return on average assets ("ROAA") of 1.40% and a return on average equity ("ROAE") of 10.27%, compared to 1.58% and 11.79%, respectively in the second quarter of 2018. These results were above the averages posted by the 131 banks that make up the SNL Small Cap U.S. Bank Index with total market capitalization between $250 million and $1 billion as of June 30, 20181.

Net Interest Income/Net Interest Margin

Net interest income grew 6% to $15.8 million in the third quarter of 2018 compared to $14.9 million in the third quarter of 2017 and $15.0 million in the second quarter of 2018. For the first nine months of 2018, net interest income increased 5% to $45.1 million from $43.0 million in the first nine months of 2017.

NIMTE* was 4.74% in the third quarter of 2018 compared to 4.56% in the preceding quarter and 4.34% from the same quarter a year ago. Higher total interest income, coupled with lower growth in total interest expense, contributed to the increases in net interest income and NIMTE* in the third quarter of 2018 compared to prior quarters. The deployment of lower-yielding cash and investments into more productive loans and higher-yielding securities also supported the increases in net interest income and NIMTE*. The yield on interest earning assets improved to 4.97%, up 23 basis points from the second quarter of 2018 and 46 basis points year-over-year. The cost of funds increased more slowly in the third quarter of 2018 at 36 basis points, up 8 basis points from the preceding quarter and 9 basis points compared to the same quarter last year. For the first nine months of 2018, NIMTE* improved 26 basis points to 4.54%.

  • In August 2017, Northrim redeemed $8.0 million in junior subordinated debt held at Northrim Capital Trust 1. This liability bore interest at a floating rate of 90-day LIBOR plus 3.15%, or 4.33% at the time it was redeemed, and had a final maturity of May 15, 2033. Interest expense on this debt in 2017, through the date of redemption on August 15, 2017, averaged $84,800 per quarter. This redemption decreased Tier 1 Capital to Risk Adjusted Assets and Total Capital to Risk Adjusted Assets by 62 basis points each.
  • An interest rate swap executed in September 2017 effectively converted the floating rate of interest on the remaining $10.0 million in outstanding junior subordinated debt from 90-day LIBOR plus 1.37%, or 3.70% as of September 30, 2018, to a fixed rate of 3.72% through the junior subordinated debt's final maturity date of March 15, 2036.

“The repayment of one of our higher-cost floating rate liabilities, completed last year, is mitigating the impact of rising interest rates on our cost of funds and provides benefits to the net interest margin,” said Jed Ballard, Chief Financial Officer.

“As we discussed in prior periods, NIM continues to benefit from our short duration investment portfolio and our variable interest rate loans,” Ballard continued.

 1As of June 30, 2018, the SNL Small Cap US Bank Index tracked 131 banks with total common market capitalization between $250 million and $1 billion with averages for the following ratios: NIMTE* 3.57%, loan loss reserves to gross loans of 0.95%, ROAA 1.08%, and ROAE 10.07%. 

Provision for Loan Losses

In the third quarter, Northrim did not record a provision for loan losses and in the first nine months of 2018 recorded a recovery of loan loss provision of $300,000, reflecting stable qualitative metrics on its loan portfolio. Non-performing loans, net of government guarantees, were $16.6 million at September 30, 2018, $16.3 million at June 30, 2018, and $22.7 million at September 30, 2017. The allowance for loan losses was 121% of nonperforming loans, net of government guarantees, at September 30, 2018, in line with 123% at the end of the second quarter of 2018 and higher than the 95% a year ago.

Other Operating Income

In addition to home mortgage lending, Northrim has interests in other businesses that complement its core community banking activities. It provides financial services to businesses and individuals through these interests, including purchased receivables financing and wealth management. Other operating income contributed $8.7 million, or 35% of total third quarter 2018 revenues, as compared to $8.3 million, or 36% of revenues in the second quarter of 2018, and $13.9 million, or 48% of revenues in the third quarter of 2017. In the first nine months of 2018, other operating income totaled $24.4 million, or 35% of revenues, compared to $32.5 million, or 43% of revenues in the first nine months of 2017. A significant part of other operating income in the prior year was the sale of the Company's interest in Northrim Benefits Group in August of 2017, which generated a $4.4 million pre-tax gain, or $2.6 million, or $0.38 per diluted share after-tax. The sale also eliminated employee benefits plan income going forward. In addition, the variability in the mortgage market also contributes to uneven results in other operating income, as this is where the Company's mortgage banking income is included. Mortgage banking income contributed $5.9 million to other operating income in the third quarter of 2018, as compared to $5.5 million in the second quarter of 2018 and $6.2 million a year ago.

Other Operating Expenses

Other operating expenses were $18.1 million in the third quarter 2018, compared to $16.6 million in the second quarter of 2018 and $17.7 million in the third quarter of 2017. In the third quarter of 2018, there was an $804,000 write down of the carrying value of the Company's minority interest in another mortgage origination business owned by Residential Mortgage Holding Company, LLC the parent company of Residential Mortgage, LLC (collectively "RML"). In addition, occupancy expense in the second quarter of 2018 declined by $670,000 due to a one-time technical correction of building depreciation. In the first nine months of 2018, other operating expenses were $51.5 million compared to $52.8 million in the like period of 2017.

Income Tax Provision

For the third quarter of 2018, Northrim recorded $1.1 million in state and federal income tax expense for an effective tax rate of 18% compared to $3.0 million with an effective tax rate of 35% in the third quarter of 2017, reflecting the new lower federal corporate income tax rate as a result of the Tax Cuts and Jobs Act of 2017. For the first nine months of 2018, Northrim recorded $3.2 million in state and federal income tax expense, for an effective tax rate of 17% compared to $6.2 million and 32% for the same period in 2017.

Community Banking

“We continue to see solid long-term opportunities in the Alaska markets that we serve,” said Schierhorn. “The expansion to Soldotna on the Kenai Peninsula earlier this year opens a new market for our lending products to businesses, consumers and homeowners.”

Net interest income in the Community Banking segment increased 5% to $15.4 million in the third quarter of 2018 from $14.6 million in the third quarter of 2017.

The following table provides highlights of the Community Banking segment of Northrim:

   Three Months Ended(Dollars in thousands, except per share data)September
30, 2018June 30, 2018March 31,
2018December
31, 2017September
30, 2017Net interest income$15,358 $14,614 $14,036 $14,381 $14,565 (Benefit) provision for loan losses— (300)— — 2,500 Other operating income2,770 2,836 2,518 2,685 7,636 Compensation expense, net RML acquisition payments— — — (193)149 Other operating expense12,204 11,748 12,367 13,113 12,252 Income before provision for income taxes5,924 6,002 4,187 4,146 7,300 Provision for income taxes996 882 659 4,754 2,452 Net income (loss)4,928 5,120 3,528 (608)4,848 Less: net income attributable to the noncontrolling interest— — — — 78 Net income (loss) attributable to Northrim BanCorp$4,928 $5,120 $3,528 ($608)$4,770 Average diluted shares6,990,633 6,976,985 6,968,082 6,963,125 6,959,035 Diluted earnings (loss) per share$0.70 $0.74 $0.50 ($0.09)$0.69 


 Year-to-date(Dollars in thousands, except per share data)September
30, 2018   September
30, 2017Net interest income$44,008    $42,067 (Benefit) provision for loan losses(300)   3,200 Other operating income8,124    14,502 Compensation expense, net RML acquisition payments—    323 Other operating expense36,319    37,158 Income before provision for income taxes16,113    15,888 Provision for income taxes2,537    4,745 Net income13,576    11,143 Less: net income attributable to the noncontrolling interest—    327 Net income attributable to Northrim BanCorp$13,576    $10,816 Average diluted shares6,978,679    6,983,778 Diluted earnings per share$1.94    $1.55         

Home Mortgage Lending

“With the housing market in Alaska continuing to be stable, demand for mortgage loans is steady. We continue to see normal seasonality in the mortgage market with higher demand in the spring and summer and lower demand in autumn and winter,” said Ballard. “Loans funded in the third quarter of 2018 were $156.3 million, of which 91% were for new home purchases. Fluctuation in mortgage activity is expected based on a number of variable factors. We continue to closely monitor operating expenses for this segment of our business to ensure that we are as efficient and profitable, as possible.

“Our mortgage servicing business, which was initiated in the fourth quarter of 2015 to service loans for the Alaska Housing Finance Corporation, continues to grow,” Ballard continued. As of September 30, 2018, Northrim serviced 2,053 loans in its $516.0 million home mortgage servicing portfolio, which is a 42% increase from the $363.0 million serviced a year ago. Mortgage servicing revenue contributed $1.5 million to third quarter of 2018 and $701,000 to the third quarter of 2017 revenues. Total mortgage servicing income fluctuates based on the amount of mortgage servicing rights originated during the period, and also based on changes in the fair value of mortgage servicing rights, which are driven by interest rate volatility and fluctuations in estimated prepayment speeds, which are based on published industry metrics.

Lastly, the $804,000 pre-tax write down of the carrying value of the Company's minority ownership interest in another mortgage origination business owned by RML discussed above is recorded in the Home Mortgage Lending segment.

The following table provides highlights of the Home Mortgage Lending segment of Northrim:

   Three Months Ended(Dollars in thousands, except per share data)September
30, 2018June 30, 2018March 31,
2018December
31, 2017September
30, 2017Mortgage commitments$69,026 $84,092 $64,819 $43,602 $68,601 Mortgage loans funded for sale$156,301 $148,183 $109,069 $132,606 $162,470 Mortgage loan refinances to total fundings9%8%18%17%12%Mortgage loans serviced for others$516,008 $472,190 $439,561 $406,291 $362,983       Net realized gains on mortgage loans sold$4,268 $4,052 $3,346 $4,084 $5,218 Change in fair value of mortgage loan commitments, net(66)32 316 (551)(23)Total production revenue4,202 4,084 3,662 3,533 5,195 Mortgage servicing revenue1,578 1,254 1,183 1,450 997 Change in fair value of mortgage servicing rights, net2(128)(118)(26)64 (296)Total mortgage servicing revenue, net1,450 1,136 1,157 1,514 701 Other mortgage banking revenue251 258 125 220 323 Total mortgage banking income$5,903 $5,478 $4,944 $5,267 $6,219       Net interest income$461 $375 $227 $303 $352 Mortgage banking income5,903 5,478 4,944 5,267 6,219 Other operating expense5,895 4,858 4,428 5,417 5,290 Income before provision for income taxes469 995 743 153 1,281 Provision for income taxes133 285 209 (669)528 Net income attributable to Northrim BanCorp$336 $710 $534 $822 $753       Average diluted shares6,990,633 6,976,985 6,968,082 6,963,125 6,959,035 Diluted earnings per share$0.05 $0.10 $0.08 $0.12 $0.11 2Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates, net of collection/realization of expected cash flows over time.


 Year-to-date(Dollars in thousands, except per share data)September
30, 2018   September
30, 2017Mortgage loans funded for sale$413,552    $421,472 Mortgage loan refinances to total fundings11%   15%      Net realized gains on mortgage loans sold$11,666    $13,929 Change in fair value of mortgage loan commitments, net282    404 Total production revenue11,948    14,333 Mortgage servicing revenue4,015    2,988 Change in fair value of mortgage servicing rights, net1(272)   (62)Total mortgage servicing revenue, net3,743    2,926 Other mortgage banking revenue634    761 Total mortgage banking income$16,325    $18,020       Net interest income$1,063    $927 Mortgage banking income16,325    18,020 Other operating expense15,181    15,335 Income before provision for income taxes2,207    3,612 Provision for income taxes627    1,491 Net income attributable to Northrim BanCorp$1,580    $2,121       Average diluted shares6,978,679    6,983,778 Diluted earnings per share$0.23    $0.30 2Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates, net of collection/realization of expected cash flows over time. 

Balance Sheet Review

Northrim’s total assets were $1.50 billion at September 30, 2018, up 2% from the preceding quarter and down 1% from a year ago. “A number of factors contributed to the change in the balance sheet, including normal seasonality in the first half of the year, timing of repayments and loan funding, and asset/liability balancing,” said Schierhorn. Northrim’s loan-to-deposit ratio remains consistent at 80% at September 30, 2018, compared to 80% at June 30, 2018, and 79% at September 30, 2017.

Average interest-earning assets were $1.33 billion in the third quarter of 2018, relatively unchanged from the second quarter of 2018 and down 3% from the third quarter a year ago. The average yield on interest-earning assets was 4.97% in the third quarter of 2018, up from 4.74% in the preceding quarter and 4.51% in the like quarter a year ago. For the first nine months of 2018, average interest-earning assets declined slightly to $1.34 billion from $1.37 billion in the first nine months of 2017. Average yields were 4.73% in the first nine months of 2018, compared to 4.46% in the first nine months of 2017.

Average investment securities totaled $264.4 million, a decrease of 8% from the second quarter of 2018, and down 7% in the third quarter of 2018 compared to the year ago quarter. The investment portfolio generated an average net tax equivalent yield of 2.29% for the third quarter of 2018, up from 2.09% in the preceding quarter and 1.63% a year ago. The average estimated duration of the investment portfolio was 24 months, at September 30, 2018, which is expected to generate improvement in yields as securities reprice in this rising interest rate environment. For the first nine months of 2018, average investment securities declined to $288.3 million with an average yield of 2.07% compared to $311.2 million and an average yield of 1.63% for the first nine months of 2017.

Portfolio loans were $982.0 million at the end of the third quarter of 2018 up 1% from the preceding quarter and down less than 1% from the third quarter a year ago. Average portfolio loans in the third quarter of 2018 were $984.9 million up 2% from the preceding quarter and down 2% from a year ago. Yields on average portfolio loans in the third quarter of 2018 improved to 5.81% from 5.65% in the second quarter of 2018 and 5.49% in the third quarter of 2017. Average portfolio loans in the first nine months of 2018 were down 1% to $968.2 million with a yield of 5.66% compared to $981.2 million and a yield of 5.48% for the first nine months of 2017.

Alaskans account for substantially all of Northrim’s deposit base, which is primarily made up of low-cost transaction accounts. Balances in transaction accounts at September 30, 2018, represented 92% of total deposits. At September 30, 2018, total deposits were $1.23 billion, up from $1.21 billion at June 30, 2018, and down from $1.26 billion a year ago. Average interest-bearing deposits were down 3% to $795.3 million with an average cost of 0.30% in the third quarter of 2018, compared to $818.6 million and 0.22% in the second quarter of 2018, and down 5% from $839.7 million and 0.20% in the third quarter of 2017. Average interest-bearing deposits were down 2% in the first nine months of 2018 at $814.3 million and with an average cost of 0.23% compared to $830.1 million and 0.21% in the first nine months of 2017. “Our cost of deposits is rising more slowly than our loan yields, reflecting the rational nature of the competition in our market,” said Ballard.

Shareholders’ equity increased 5% to $203.2 million, or $29.52 per share, at September 30, 2018, compared to $194.4 million, or $28.37 per share, a year ago. Tangible book value per share* was $27.17 at September 30, 2018, compared to $26.00 per share a year ago. Northrim continues to maintain capital levels in excess of the requirements to be categorized as “well-capitalized” under the Basel III and Dodd Frank regulatory standards with Tier 1 Capital to Risk Adjusted Assets of 16.58% at September 30, 2018.

Asset Quality

Asset quality in the third quarter of 2018 was stable. Nonperforming assets ("NPAs"), net of government guarantees were $24.1 million at September 30, 2018, relatively unchanged from the end of the preceding quarter, and declined from $26.2 million at September 30, 2017, primarily due to loan payments which exceeded NPA additions. Of the NPAs, $16.0 million or 67% are nonaccrual loans related to five commercial relationships. Two of these relationships, which totaled $8.3 million at the end of the third quarter of 2018, are businesses in the medical industry.

Net adversely classified loans were $29.7 million at the end of the third quarter of 2018 as compared to $33.2 million at the end of the second quarter of 2018 and $33.8 million one year ago. Net loan recoveries in the third quarter of 2018 were $52,000 compared to net charge-offs of $41,000 in the preceding quarter and $1.1 million in the year ago quarter. Adversely classified loans are loans that Northrim has classified as substandard, doubtful, and loss, net of government guarantees. As of September 30, 2018, $27.9 million, or 94% of net adversely classified loans are attributable to seven relationships with four loans to commercial businesses, two loans to medical businesses, and one loan to an oilfield services commercial business.

Performing restructured loans that were not included in nonaccrual loans at the end of the third quarter of 2018 were $3.3 million, down from $9.1 million in the preceding quarter and from $7.7 million a year ago. The decrease in the third quarter of 2018 compared to the year ago quarter is primarily due to the repayment of two commercial relationships. Borrowers who are in financial difficulty and who have been granted concessions that may include interest rate reductions, term extensions, or payment alterations are categorized as restructured loans. The Company presents restructured loans that are performing separately from those that are classified as nonaccrual to provide more information on this category of loans and to differentiate between accruing performing and nonperforming restructured loans.

Northrim estimates that $55.7 million, or approximately 6% of portfolio loans as of September 30, 2018, had direct exposure to the oil and gas industry in Alaska, and $1.9 million of these loans are adversely classified. As of September 30, 2018, Northrim has an additional $38.5 million in unfunded commitments to companies with direct exposure to the oil and gas industry in Alaska, and none of these unfunded commitments are considered to be adversely classified loans. “We continue to have no loans to oil producers or exploration companies,” added Ballard. “We define direct exposure to the oil and gas sector as loans to borrowers that provide oilfield services and other companies that we have identified as significantly reliant upon activity in Alaska related to the oil and gas industry, such as lodging, equipment rental, transportation and other logistics services specific to this industry.”

About Northrim BanCorp

Northrim BanCorp, Inc. is the parent company of Northrim Bank, an Alaska-based community bank with 14 branches in Anchorage, the Matanuska Valley, Juneau, Fairbanks, Ketchikan, and Sitka serving 90% of Alaska’s population; and an asset based lending division in Washington; and a wholly-owned mortgage brokerage company, Residential Mortgage Holding Company, LLC. The Bank differentiates itself with its detailed knowledge of Alaska’s economy and its “Customer First Service” philosophy. Pacific Wealth Advisors, LLC is an affiliated company of Northrim BanCorp.

www.northrim.com

Forward-Looking Statement
This release may contain “forward-looking statements” as that term is defined for purposes of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are, in effect, management’s attempt to predict future events, and thus are subject to various risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. All statements, other than statements of historical fact, regarding our financial position, business strategy and management’s plans and objectives for future operations are forward-looking statements. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect,” and “intend” and words or phrases of similar meaning, as they relate to Northrim and its management are intended to help identify forward-looking statements. Although we believe that management’s expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward looking statements are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include: our ability to maintain strong asset quality and to maintain or expand our market share or net interest margins; and our ability to execute our business plan. Further, actual results may be affected by our ability to compete on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy as those factors relate to our cost of funds and return on assets. In addition, there are risks inherent in the banking industry relating to collectability of loans and changes in interest rates. Many of these risks, as well as other risks that may have a material adverse impact on our operations and business, are identified in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, and from time to time are disclosed in our other filings with the Securities and Exchange Commission. However, you should be aware that these factors are not an exhaustive list, and you should not assume these are the only factors that may cause our actual results to differ from our expectations. These forward-looking statements are made only as of the date of this release, and Northrim does not undertake any obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this release.

References:

https://www.adn.com/business-economy/2018/10/09/first-crude-flows-from-federal-leases-in-arctic-alaska-petroleum-reserve/

http://www.petroleumnews.com/pntruncate/757137768.shtml

       Income Statement      (Dollars in thousands, except per share data)Three Months Ended Year-to-date(Unaudited)September 30,June 30,September 30, September 30,September 30, 201820182017 20182017Interest Income:      Interest and fees on loans$14,992 $14,036 $14,341  $42,291 $41,180 Interest on portfolio investments1,419 1,400 1,060  4,167 3,466 Interest on deposits in banks169 159 118  512 230 Total interest income16,580 15,595 15,519  46,970 44,876 Interest Expense:      Interest expense on deposits595 446 429  1,413 1,325 Interest expense on borrowings166 160 173  486 557 Total interest expense761 606 602  1,899 1,882 Net interest income15,819 14,989 14,917  45,071 42,994        (Benefit) provision for loan losses— (300)2,500  (300)3,200 Net interest income after provision for loan losses15,819 15,289 12,417  45,371 39,794        Other Operating Income:      Mortgage banking income5,903 5,478 6,219  16,325 18,020 Purchased receivable income767 867 752  2,474 2,217 Bankcard fees724 707 664  2,056 1,903 Service charges on deposit accounts407 376 406  1,137 1,254 (Loss) gain on sale of securities— — (3) — 11 Gain on sale of Northrim Benefits Group— — 4,443  — 4,443 Employee benefit plan income— — 609  — 2,506 Other income872 886 765  2,457 2,168 Total other operating income8,673 8,314 13,855  24,449 32,522        Other Operating Expense:      Salaries and other personnel expense11,261 11,362 11,115  33,208 33,750 Occupancy expense1,687 1,020 1,706  4,407 4,991 Data processing expense1,503 1,323 1,509  4,374 4,209 Impairment of equity method investment804 — —  804 — Professional and outside services727 554 674  1,780 1,908 Marketing expense367 462 332  1,461 1,733 Insurance expense171 178 475  645 922 OREO expense, net rental income and gains on sale43 11 (44) 157 216 Intangible asset amortization expense18 17 26  53 79 Compensation expense, net RML acquisition payments— — 149  — 323 Other operating expense1,518 1,679 1,749  4,611 4,685 Total other operating expense18,099 16,606 17,691  51,500 52,816        Income before provision for income taxes6,393 6,997 8,581  18,320 19,500 Provision for income taxes1,129 1,167 2,980  3,164 6,236 Net income5,264 5,830 5,601  15,156 13,264 Less: Net income attributable to the noncontrolling interest— — 78  — 327 Net income attributable to Northrim BanCorp$5,264 $5,830 $5,523  $15,156 $12,937        Basic EPS$0.77 $0.85 $0.80  $2.21 $1.88 Diluted EPS$0.75 $0.84 $0.79  $2.17 $1.85 Average basic shares6,877,194 6,872,371 6,872,273  6,873,843 6,897,577 Average diluted shares6,990,633 6,976,985 6,959,035  6,978,679 6,983,778 


Balance Sheet   (Dollars in thousands)   (Unaudited)September 30,June 30,September 30, 201820182017    Assets:   Cash and due from banks$37,651 $26,355 $13,960 Interest bearing deposits in other banks32,528 9,775 73,309 Investment securities available for sale264,193 264,124 264,550 Investment securities held to maturity— — 897 Marketable equity securities6,035 6,006 5,801 Investment in Federal Home Loan Bank stock2,103 2,104 2,116     Loans held for sale56,636 54,306 59,420     Portfolio loans982,007 967,702 988,490 Allowance for loan losses(20,160)(20,108)(21,464)Net portfolio loans961,847 947,594 967,026 Purchased receivables, net12,706 20,323 12,930 Mortgage servicing rights9,695 8,733 6,181 Other real estate owned, net8,707 8,959 3,505 Premises and equipment, net38,637 38,113 40,046 Goodwill and intangible assets16,171 16,189 16,245 Other assets55,764 67,859 56,798 Total assets$1,502,673 $1,470,440 $1,522,784     Liabilities:   Demand deposits$450,409 $401,925 $426,946 Interest-bearing demand240,974 246,628 240,274 Savings deposits233,611 237,978 251,266 Money market deposits208,614 223,189 233,768 Time deposits99,660 95,801 106,063 Total deposits1,233,268 1,205,521 1,258,317 Securities sold under repurchase agreements32,429 27,695 31,084 Other borrowings7,282 7,312 7,387 Junior subordinated debentures10,310 10,310 10,310 Other liabilities16,142 20,146 21,259 Total liabilities1,299,431 1,270,984 1,328,357     Total shareholders' equity203,242 199,456 194,427 Total liabilities and shareholders' equity$1,502,673 $1,470,440 $1,522,784 


Additional Financial Information(Dollars in thousands)(Unaudited) Composition of Portfolio Investments        September 30, 2018 June 30, 2018 September 30, 2017 Balance% of
total Balance% of
total Balance% of
totalU.S. Treasury securities$54,452 20.2% $39,534 14.6% $30,012 11.1%U.S. Agency securities151,380 56.0% 169,158 62.7% 179,088 66.0%Corporate securities40,516 15.0% 37,490 13.9% 35,082 12.9%Marketable equity securities6,035 2.2% 6,006 2.2% 5,801 2.1%Collateralized loan obligations6,002 2.2% 6,007 2.2% 3,002 1.1%Alaska municipality, utility, or state bonds7,307 2.7% 7,348 2.7% 13,502 5.0%Other municipality, utility, or state bonds4,536 1.7% 4,587 1.7% 4,761 1.8%Total portfolio investments$270,228   $270,130   $271,248  


Composition of Portfolio Loans             September 30, 2018 June 30, 2018 March 31, 2018 December 31, 2017 September 30, 2017 Balance% of
total Balance% of
total Balance% of
total Balance% of
total Balance% of
totalCommercial loans$333,132 34% $327,733 34% $316,081 33% $313,514 33% $315,226 32%CRE owner occupied loans130,166 13% 127,384 13% 132,589 14% 132,041 14% 134,994 14%CRE nonowner occupied loans382,313 39% 385,648 40% 395,915 41% 359,725 38% 386,137 38%Construction loans97,976 10% 89,433 9% 85,257 9% 111,294 12% 111,427 11%Consumer loans42,775 4% 41,711 4% 41,841 3% 42,535 3% 44,681 5%Subtotal986,362   971,909   971,683   959,109   992,465  Unearned loan fees, net(4,355)  (4,207)  (4,108)  (4,156)  (3,975) Total portfolio loans$982,007   $967,702   $967,575   $954,953   $988,490  


Composition of Deposits             September 30, 2018 June 30, 2018 March 31, 2018 December 31, 2017 September 30, 2017 Balance% of
total Balance% of
total Balance% of
total Balance% of
total Balance% of
totalDemand deposits$450,409 36% $401,925 33% $433,046 34% $414,686 33% $426,946 34%Interest-bearing demand240,974 20% 246,628 20% 244,601 19% 252,009 20% 240,274 19%Savings deposits233,611 19% 237,978 20% 246,981 20% 247,458 20% 251,266 20%Money market deposits208,614 17% 223,189 19% 239,242 19% 243,603 19% 233,768 19%Time deposits99,660 8% 95,801 8% 96,920 8% 100,527 8% 106,063 8%Total deposits$1,233,268   $1,205,521   $1,260,790   $1,258,283   $1,258,317  


Additional Financial Information(Dollars in thousands)(Unaudited) Asset Quality       September 30, June 30, September 30,  2018 2018 2017 Nonaccrual loans$16,728  $16,635  $24,317  Loans 90 days past due and accruing152  —  214  Total nonperforming loans16,880  16,635  24,531  Nonperforming loans guaranteed by government(279) (327) (1,846) Net nonperforming loans16,601  16,308  22,685  Other real estate owned8,707  8,959  3,505  Repossessed assets29  —  —  Other real estate owned guaranteed by government(1,279) (1,280) —  Net nonperforming assets$24,058  $23,987  $26,190  Nonperforming loans / portfolio loans, net of government guarantees1.69 %1.69 %2.29 %Nonperforming assets / total assets, net of government guarantees1.60 %1.63 %1.72 %       Performing restructured loans$3,252  $9,096  $7,687  Nonperforming loans plus performing restructured loans, net of government guarantees$19,853  $25,404  $30,372  Nonperforming loans plus performing restructured loans / portfolio loans, net of government guarantees2.02 %2.63 %3.07 %Nonperforming assets plus performing restructured loans / total assets, net of government guarantees1.82 %2.25 %2.22 %       Adversely classified loans, net of government guarantees$29,730  $33,178  $33,789  Loans 30-89 days past due and accruing, net of government guarantees / portfolio loans0.26 %0.18 %0.70 %       Allowance for loan losses / portfolio loans2.05 %2.08 %2.17 %Allowance for loan losses / nonperforming loans, net of government guarantees121 %123 %95 %       Gross loan charge-offs for the quarter$9  $100  $1,203  Gross loan recoveries for the quarter($61) ($59) ($106) Net loan (recoveries) charge-offs for the quarter($52) $41  $1,097  Net loan charge-offs year-to-date$1,001  $1,053  $1,433  Net loan (recoveries) charge-offs for the quarter / average loans, for the quarter(0.01)%0.00 %0.11 %Net loan charge-offs year-to-date / average loans, year-to-date annualized0.14 %0.22 %0.19 %

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Nonperforming Assets Rollforward        Balance at
June 30,
2018Additions
this
quarterPayments
this
quarterWritedowns
/Charge-
offs
this quarterTransfers to
OREO/
REPOTransfers to
Performing
Status
this quarterSales
this
quarterBalance at
September
30, 2018Commercial loans$15,234 $1,179 ($1,679)$— $— $— $— $14,734 Commercial real estate1,331 363 — — — — — 1,694 Construction loans— — — — — — — — Consumer loans70 442 (22)(9)(29)— — 452 Non-performing loans guaranteed by government(327)— 48 — — — — (279)Total non-performing loans16,308 1,984 (1,653)(9)(29)— — 16,601 Other real estate owned8,959 — — — — — (252)8,707 Repossessed assets— 29 — — — — — 29 Other real estate owned guaranteed by government(1,280)— 1 — — — — (1,279)Total non-performing assets, net of government guarantees$23,987 $2,013 ($1,652)($9)($29)$— ($252)$24,058                  

The following table details loan charge-offs, by industry:

     Loan Charge-offs by Industry     Three Months Ended September 30,
2018June 30, 2018March 31, 2018December 31,
2017September 30,
2017Charge-offs:     Transportation and warehousing$— $— $— $24 $339 Other services— 78 — 5 48 News media— — — — 731 Health care and social assistance— — 965 — — Consumer9 22 139 26 85 Total charge-offs$9 $100 $1,104 $55 $1,203 


Additional Financial Information(Dollars in thousands)(Unaudited) Average Balances, Yields, and Rates         Three Months Ended September 30, 2018 June 30, 2018 September 30, 2017 Average
BalanceAverage
Tax
Equivalent
Yield/Rate Average
BalanceAverage
Tax
Equivalent
Yield/Rate Average
BalanceAverage
Tax
Equivalent
Yield/RateAssets        Interest bearing deposits in other banks$34,136 1.94% $35,846 1.75% $37,349 1.24%Portfolio investments264,377 2.29% 287,003 2.09% 284,806 1.63%Loans held for sale54,792 4.64% 48,608 4.32% 57,346 3.74%Portfolio loans984,914 5.81% 963,724 5.65% 1,003,751 5.49%Total interest-earning assets1,338,219 4.97% 1,335,181 4.74% 1,383,252 4.51%Nonearning assets150,808   145,520   142,226  Total assets$1,489,027   $1,480,701   $1,525,478           Liabilities and Shareholders' Equity        Interest-bearing deposits$795,256 0.30% $818,592 0.22% $839,743 0.20%Borrowings46,663 1.39% 44,897 1.40% 49,223 1.36%Total interest-bearing liabilities841,919 0.36% 863,489 0.28% 888,966 0.27%         Noninterest-bearing demand deposits428,741   399,311   423,065  Other liabilities15,039   19,626   18,744  Shareholders' equity203,328   198,275   194,703  Total liabilities and shareholders' equity$1,489,027   $1,480,701   $1,525,478  Net spread 4.61%  4.46%  4.24%NIM 4.69%  4.50%  4.28%NIMTE* 4.74%  4.56%  4.34%Average portfolio loans to average interest-earning assets73.60%  72.18%  72.56% Average portfolio loans to average total deposits80.47%  79.13%  79.49% Average non-interest deposits to average total deposits35.03%  32.79%  33.50% Average interest-earning assets to average interest-bearing liabilities158.95%  154.63%  155.60%             

The components of the change in NIMTE* are detailed in the table below:

    3Q18 vs. 2Q183Q18 vs. 3Q17Nonaccrual interest adjustments(0.02)%—%Interest rates and loan fees0.15 %0.39%Volume and mix of interest-earning assets0.05 %0.01%Change in NIMTE*0.18 %0.40%


Additional Financial Information(Dollars in thousands)(Unaudited) Average Balances, Yields, and Rates      Year-to-date September 30, 2018 September 30, 2017  Average  Average AverageTax Equivalent AverageTax Equivalent BalanceYield/Rate BalanceYield/RateAssets     Interest bearing deposits in other banks$39,335 1.72% $28,827 1.05%Portfolio investments288,311 2.07% 311,215 1.63%Loans held for sale46,042 4.30% 44,313 3.84%Portfolio loans968,225 5.66% 981,220 5.48%Total interest-earning assets1,341,913 4.73% 1,365,575 4.46%Nonearning assets146,006   142,507  Total assets$1,487,919   $1,508,082        Liabilities and Shareholders' Equity     Interest-bearing deposits$814,339 0.23% $830,128 0.21%Borrowings45,943 1.39% 51,247 1.42%Total interest-bearing liabilities860,282 0.29% 881,375 0.28%      Noninterest-bearing demand deposits410,841   416,105  Other liabilities17,734   18,800  Shareholders' equity199,062   191,802  Total liabilities and shareholders' equity$1,487,919   $1,508,082  Net spread 4.44%  4.18%NIM 4.49%  4.21%NIMTE* 4.54%  4.28%Average portfolio loans to average interest-earning assets72.15%  71.85% Average portfolio loans to average total deposits79.03%  78.73% Average non-interest deposits to average total deposits33.53%  33.39% Average interest-earning assets to average interest-bearing liabilities155.99%  154.94%         

The components of the change in NIMTE* are detailed in the table below:

   YTD18 vs.YTD17Nonaccrual interest adjustments(0.01)%Interest rates and loan fees0.27 %Volume and mix of interest-earning assets— %Change in NIMTE*0.26 %


Additional Financial Information(Dollars in thousands)(Unaudited) Capital Data (At quarter end)       September 30, 2018 June 30, 2018 September 30, 2017 Book value per share$29.52  $29.02  $28.37  Tangible book value per share*$27.17  $26.66  $26.00  Total shareholders' equity/total assets13.53 %13.56 %12.77 %Tangible Common Equity/Tangible Assets*12.58 %12.60 %11.83 %Tier 1 Capital / Risk Adjusted Assets15.33 %15.10 %13.50 %Total Capital / Risk Adjusted Assets16.58 %16.35 %14.75 %Tier 1 Capital / Average Assets13.41 %13.23 %11.54 %Shares outstanding6,884,386  6,872,959  6,852,338            Unrealized loss on AFS debt securities, net of income taxes($1,680) ($1,506) $147  Unrealized gain on derivatives and hedging activities$1,039  $805  $—  


Profitability Ratios           September 30,
2018 June 30,
2018 March 31,
2018 December 31,
2017 September 30,
2017 For the quarter:          NIM4.69 %4.50 %4.28 %4.25 %4.28 %NIMTE*4.74 %4.56 %4.33 %4.31 %4.34 %Efficiency ratio73.82 %71.19 %77.22 %80.92 %61.40 %Return on average assets1.40 %1.58 %1.10 %0.06 %1.44 %Return on average equity10.27 %11.79 %8.43 %0.43 %11.25 %


 September 30,
2018          September 30,
2017 Year-to-date:             NIM4.49 %         4.21 %NIMTE*4.54 %         4.28 %Efficiency ratio74.00 %         69.84 %Return on average assets1.36 %         1.15 %Return on average equity10.18 %         9.02 %                

*Non-GAAP Financial Measures
(Dollars and shares in thousands, except per share data)
(Unaudited)

NIMTE

NIMTE is a non-GAAP performance measurement in which interest income on non-taxable investments and loans is presented on a tax equivalent basis using a combined federal and state statutory rate of 28.43% in 2018 and 41.11% in 2017. The most comparable GAAP measure is net interest margin and the following table sets forth the reconciliation of NIMTE to net interest margin.

   Three Months Ended September 30,
2018 June 30, 2018 March 31,
2018 December 31,
2017 September 30,
2017Net interest income$15,819  $14,989  $14,263  $14,684  $14,917 Divided by average interest-bearing assets1,338,219  1,335,181  1,352,497  1,372,033  1,383,252 Net interest margin ("NIM")34.69% 4.50% 4.28% 4.25% 4.28%          Net interest income$15,819  $14,989  $14,263  $14,684  $14,917 Plus: reduction in tax expense related to tax-exempt interest income182  175  173  204  220  $16,001  $15,164  $14,436  $14,888  $15,137 Divided by average interest-bearing assets1,338,219  1,335,181  1,352,497  1,372,033  1,383,252 NIMTE34.74% 4.56% 4.33% 4.31% 4.34%


 Year-to-date September 30,
2018      September 30,
2017Net interest income$45,071       $42,994 Divided by average interest-bearing assets1,341,913       1,365,575 Net interest margin ("NIM")44.49%      4.21%         Net interest income$45,071       $42,994 Plus: reduction in tax expense related to tax-exempt interest income530       670  $45,601       $43,664 Divided by average interest-bearing assets1,341,913       1,365,575 NIMTE44.54%      4.28% 3Calculated using actual days in the quarter divided by 365 for quarters ended in 2018 and 2017. 4Calculated using actual days in the year divided by 365 for year-to-date periods in 2018 and 2017. 

(Dollars and shares in thousands, except per share data)
(Unaudited)

Tangible Book Value

Tangible book value is a non-GAAP measure defined as shareholders' equity, less intangible assets, divided by shares outstanding. The following table sets forth the reconciliation of tangible book value per share and book value per share.

           September 30,
2018 June 30, 2018 March 31,
2018 December 31,
2017 September 30,
2017          Total shareholders' equity$203,242  $199,456  $194,973  $192,802  $194,427 Divided by shares outstanding6,884  6,873  6,872  6,872  6,852 Book value per share$29.52  $29.02  $28.37  $28.06  $28.37 


 September 30,
2018 June 30, 2018 March 31,
2018 December 31,
2017 September 30,
2017          Total shareholders' equity$203,242  $199,456  $194,973  $192,802  $194,427 Less: goodwill and intangible assets16,171  16,189  16,207  16,224  16,245  $187,071  $183,267  $178,766  $176,578  $178,182 Divided by shares outstanding6,884  6,873  6,872  6,872  6,852 Tangible book value per share$27.17  $26.66  $26.01  $25.70  $26.00                

Tangible Common Equity to Tangible Assets

Tangible common equity to tangible assets is a non-GAAP ratio that represents total equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets. This ratio has received more attention over the past several years from stock analysts and regulators. The most comparable GAAP measure of shareholders' equity to total assets is calculated by dividing total shareholders' equity by total assets.

Northrim BanCorp, Inc.September 30,
2018 June 30, 2018 March 31,
2018 December 31,
2017 September 30,
2017          Total shareholders' equity$203,242  $199,456  $194,973  $192,802  $194,427 Total assets1,502,673  1,470,440  1,524,741  1,518,596  1,522,784 Total shareholders' equity to total assets13.53% 13.56% 12.79% 12.70% 12.77%


Northrim BanCorp, Inc.September 30,
2018 June 30, 2018 March 31,
2018 December 31,
2017 September 30,
2017Total shareholders' equity$203,242  $199,456  $194,973  $192,802  $194,427 Less: goodwill and other intangible assets, net16,171  16,189  16,207  16,224  16,245 Tangible common shareholders' equity$187,071  $183,267  $178,766  $176,578  $178,182           Total assets$1,502,673  $1,470,440  $1,524,741  $1,518,596  $1,522,784 Less: goodwill and other intangible assets, net16,171  16,189  16,207  16,224  16,245 Tangible assets$1,486,502  $1,454,251  $1,508,534  $1,502,372  $1,506,539 Tangible common equity ratio12.58% 12.60% 11.85% 11.75% 11.83%


Contact:Joe Schierhorn, President, CEO, and COO (907) 261-3308 Jed Ballard, Chief Financial Officer (907) 261-3539
Categories: State

Palmetto Heritage Shareholders Approve Proposed Merger With First Citizens Bank

Banking - 29 October 2018 - 1:35pm

RALEIGH, N.C., and PAWLEYS ISLAND, S.C., Oct. 29, 2018 (GLOBE NEWSWIRE) -- First-Citizens Bank & Trust Company (First Citizens Bank) and Palmetto Heritage Bancshares, Inc. (Palmetto Heritage) announced today that Palmetto Heritage shareholders have approved First Citizens’ pending acquisition of Palmetto Heritage and its Palmetto Heritage Bank & Trust (Palmetto Heritage Bank) subsidiary.

At a meeting held today, the shareholders of Pawleys Island, S.C.-based Palmetto Heritage voted to approve the merger agreement with Raleigh, N.C.-headquartered First Citizens Bank. The merger has also been approved by the Federal Deposit Insurance Corp., the North Carolina Commissioner of Banks and the South Carolina Board of Financial Institutions. Subject to the satisfaction or waiver of other customary closing conditions, the merger is expected to become effective in early November.

After the merger, the three Palmetto Heritage Bank branch offices will initially operate as Palmetto Heritage Bank, a division of First Citizens Bank. Customers should bank as they normally do at their existing branches. Palmetto Heritage Bank customer accounts will be converted to First Citizens Bank’s systems and operations at a later date.

C. Ronald Christmas, vice chairman and chief executive officer of Palmetto Heritage Bank, said: “I want to thank our shareholders for their positive vote today. By coming together with First Citizens, we’ll not only continue on our path of service excellence, but will be even better equipped to meet our customers’ needs. We’re excited about leveraging the best of both banks and offering more to our customers going forward.”

Frank B. Holding Jr., chairman and chief executive officer of First Citizens Bank, said: “We’re pleased with today’s vote. The proposed merger with Palmetto Heritage will allow us to continue to expand our presence and strengthen our commitment to coastal South Carolina. First Citizens and Palmetto Heritage are both relationship banks – we care deeply about our associates, our customers and the communities we serve. We look forward to welcoming Palmetto Heritage to the First Citizens family.”

As of Sept. 30, 2018, Palmetto Heritage Bancshares reported $164.9 million in consolidated assets, $123.1 million in deposits and $136.4 million in loans.

Palmetto Heritage Bank opened in 2005 and provides banking services in coastal South Carolina through three locations in Pawleys Island, Mount Pleasant and Murrells Inlet. First Citizens operates 135 branches in South Carolina – with 18 locations in Georgetown, Horry and Charleston counties, where Palmetto Heritage Bank has a presence.

About First Citizens Bank

Founded in 1898 and headquartered in Raleigh, N.C., First Citizens Bank serves customers at more than 500 branches in 19 states. First Citizens Bank is a wholly owned subsidiary of First Citizens BancShares, Inc. (Nasdaq: FCNCA), which has $35 billion in assets.  For more information, call toll free 1.888.FC DIRECT (1.888.323.4732) or visit www.firstcitizens.com. First Citizens Bank. Forever First®.

About Palmetto Heritage Bancshares, Inc. and Palmetto Heritage Bank & Trust

Palmetto Heritage Bank & Trust is the wholly owned subsidiary of Palmetto Heritage Bancshares, Inc., a registered bank holding company.  Founded in 2005, Palmetto Heritage Bank serves individuals and businesses in Georgetown and Horry Counties with particular emphasis on the “Waccamaw Neck” area and in Charleston County at Mount Pleasant by offering a broad range of quality financial products and services. For more information, visit www.palmettoheritagebank.com.

Disclosures About Forward Looking Statements

This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933. For the purposes of these discussions, any statements that are not statements of historical fact may be deemed to be forward looking statements. Such statements are often characterized by the use of qualifying words such as "expects," "anticipates," "believes," "estimates," "plans," "projects," or other statements concerning opinions or judgments of Palmetto Heritage and First Citizens Bank and their managements about future events. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those described in the statements. Forward-looking statements in this news release include statements regarding Palmetto Heritage’s and First Citizens Bank’s expectations regarding the benefits of the merger, and when the merger will be completed. The accuracy of such forward-looking statements could be affected by factors beyond Palmetto Heritage’s and First Citizens Bank’s control, including, but not limited to, delays in the satisfaction or waiver of other remaining conditions to the consummation of the merger and difficulties experienced in the integration of the businesses of Palmetto Heritage and First Citizens Bank. Additional factors that could cause actual results to differ materially from those anticipated by forward-looking statements are discussed in Palmetto Heritage’s proxy statement for its special meeting of shareholders held on Oct. 29, 2018. Palmetto Heritage and First Citizens Bank undertake no obligation to revise or update these statements following the date of this  news release.

Contacts:  Barbara Thompson   C. Ronald Christmas  919.716.2716   843.237.7776  First Citizens Bank  Palmetto Heritage Bancshares, Inc.      
Categories: State

Plumas Bancorp Completes Acquisition of Mutual of Omaha Bank Branch in Carson City, Nevada

Banking - 29 October 2018 - 9:06am


QUINCY, Calif., Oct. 29, 2018 (GLOBE NEWSWIRE) --  Plumas Bancorp (Nasdaq:PLBC), the parent company of Plumas Bank (the “Bank”), today announced the completion of the acquisition of the Carson City, Nevada branch of Mutual of Omaha Bank . This transaction resulted in the acquisition of $45.6 million in deposits and $1.8 million in loans.

Andrew J. Ryback, Director, President and Chief Executive Officer of Plumas Bancorp and Plumas Bank, stated, "We are very pleased to be able to retain all of the Carson City branch employees and we welcome them into the Plumas Bank family as, together, we serve the financial needs of our new clients. He continued, “I’d like to acknowledge the hard work of numerous individuals at both Mutual of Omaha Bank and Plumas Bank.  All of us at Plumas Bank would like to thank the entire Mutual of Omaha Bank team for their helpfulness and cooperation in making this a smooth and efficient transition for everyone involved.”

Chris Slothower, Branch Manager of the Carson City, Plumas Bank office, replied, “My team and I are pleased to be a part of the Plumas Bank family and we look forward to representing Plumas Bank in our community.”

Ryback concluded, “This acquisition is a perfect fit for our Company because it allows us to expand our presence in the Sierra Region and provides additional lending and deposit gathering opportunities. This acquisition will also enable us to better serve our Nevada client base and, ultimately, create long term value for our shareholders.”

About Plumas Bancorp

Founded in 1980, Plumas Bank, with assets over $800 million, is a locally owned and managed full-service community bank headquartered in Northeastern California. The Bank operates thirteen branches: eleven located in the California counties of Plumas, Lassen, Placer, Nevada, Modoc and Shasta and two branches located in the northern Nevada counties of Washoe and Carson City. The Bank also operates four loan production offices: three located in the California counties of Placer, Butte and Tehama and one located in the Oregon county of Klamath. Plumas Bank offers a wide range of financial and investment services to consumers and businesses and has received nationwide Preferred Lender status with the United States Small Business Administration. For more information on Plumas Bancorp and Plumas Bank, please visit our website at www.plumasbank.com.

Forward Looking Statements

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended and Plumas Bancorp intends for such forward-looking statements to 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 above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely.

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. Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this news release. Factors that might cause such differences 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.

In addition, discussions about risks and uncertainties are set forth from time to time in the Company's publicly available Securities and Exchange Commission filings. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.


CONTACT: Contact: Elizabeth Kuipers Vice President, Marketing Manager & Investor Relations Officer, Plumas Bank 35 S. Lindan Ave. Quincy, CA 95971 Ph: 530.283.7305 x8912 Fx: 530.283.9665 elizabeth.kuipers@plumasbank.com
Categories: State

HomeTrust Bancshares, Inc. Reports Financial Results For The First Quarter Of Fiscal 2019

Banking - 29 October 2018 - 8:00am

ASHEVILLE, N.C., Oct. 29, 2018 (GLOBE NEWSWIRE) -- HomeTrust Bancshares, Inc. (NASDAQ: HTBI) ("Company"), the holding company of HomeTrust Bank ("Bank"), today announced preliminary net income of $7.8 million for the quarter ended September 30, 2018, a $2.2 million, or 39.9% increase over net income of $5.6 million for the same period a year ago. The Company's diluted earnings per share increased $0.11, or 36.7% to $0.41 for the three months ended September 30, 2018 compared to $0.30 for the same period in fiscal 2018.

In addition to the almost 40% increase in earnings, highlights for the quarter ended September 30, 2018 compared to the corresponding quarter in the previous year include:

  • Return on assets increased to 0.94%, or 34.3% from 0.70%;
  • Net interest income increased $1.6 million, or 6.4% to $26.3 million from $24.7 million;
  • Noninterest income increased $1.4 million, or 31.7% to $5.6 million from $4.3 million;
  • Organic net loan growth, which excludes purchases of home equity lines of credit, was $76.8 million, or 13.0% annualized compared to $43.2 million, or 7.9% annualized for the same quarter last year; and
  • Resuming our stock buyback program with the repurchase of 128,300 shares of common stock at an average share price of $29.03.

"Record net income for the first quarter of fiscal 2019 reflects our continued momentum and the impact of our new lines of business. The gain on sale of SBA loans produced $898,000 of fee income and equipment finance originated almost $33 million in loans for the quarter," said Dana Stonestreet, Chairman, President, and Chief Executive Officer. “The cumulative impact of all that our team has accomplished, coupled with the addition of high performing revenue producers in our attractive markets, continues our inflection point for growth in revenue, earnings and shareholder value."

Income Statement Review

Net interest income increased to $26.3 million for the quarter ended September 30, 2018 compared to $24.7 million for the comparative quarter in fiscal 2018. The $1.6 million or 6.4% increase was primarily due to a $4.3 million increase in interest and dividend income driven by an increase in average interest-earning assets, which was partially offset by a $2.7 million increase in interest expense. Average interest-earning assets increased $156.9 million, or 5.4% to $3.1 billion for the quarter ended September 30, 2018 compared to $2.9 billion for the corresponding quarter in fiscal 2018. For the quarter ended September 30, 2018, the average balance of total loans receivable increased $196.4 million, or 8.3% primarily due to organic loan growth. The average balance of other interest-earning assets increased $62.8 million, or 30.1% primarily due to increases in commercial paper investments. These increases were mainly funded by the cumulative decrease of $102.3 million, or 29.3% in average interest-earning deposits in other banks and investment securities, and an increase in average interest-bearing liabilities of $102.8 million, or 4.3% as compared to the same quarter last year. Net interest margin (on a fully taxable-equivalent basis) for the three months ended September 30, 2018 increased slightly to 3.45% from 3.44% for the same period a year ago.

Total interest and dividend income increased $4.3 million, or 15.2% for the three months ended September 30, 2018 as compared to the same period last year, which was primarily driven by a $3.5 million, or 13.8% increase in loan interest income and a $688,000, or 58.9% increase in interest income from certificates of deposit and other interest-bearing deposits including commercial paper. The additional loan interest income was driven by the increase in the average balance of loans receivable and loan yields compared to the prior year quarter. Average loan yields increased 17 basis points to 4.54% for the quarter ended September 30, 2018 from 4.37% in the corresponding quarter from last year primarily due to the impact of the recent increases in the targeted federal funds rate. Partially offsetting the increase in loan interest income was a $404,000, or 52.1% decrease in the accretion of purchase discounts on acquired loans as a result of reduced prepayments as compared to the same quarter last year. For the quarters ended September 30, 2018 and 2017, the average loan yields included six and 13 basis points, respectively, from the accretion of purchase discounts on acquired loans.

Total interest expense increased $2.7 million, or 81.2% for the quarter ended September 30, 2018 compared to the same period last year. The increase was driven by a $1.4 million, or 104.3% increase in deposit interest expense and a $1.3 million, or 65.5% increase in interest expense on borrowings. The additional deposit interest expense  was a result of our focus on increasing  deposits as the average balance of deposits increased $125.1 million along with a 28 basis point increase in the average cost of deposits for the quarter ended September 30, 2018 compared to the same quarter last year. The decrease in average borrowings was more than offset by the 84 basis point increase in the average cost of borrowings during the three months ended September 30, 2018 as compared to the same period last year, which drove the increase in interest expense. The overall average cost of funds increased 40 basis points to 0.95% for the current quarter as compared to the same quarter last year due primarily to the impact of the previously mentioned interest rate increases on our borrowings.

Noninterest income increased $1.4 million, or 31.7% to $5.6 million for the three months ended September 30, 2018 from $4.3 million for the same period in the previous year. The leading factors of the increase included a $557,000, or 30.2% increase in service charges on deposit accounts as a result of an increase in deposit accounts and related fees; an $896,000, or 81.3% increase in loan income and fees driven by an $883,000 increase in fees from the originations and sales of the guaranteed portion of U.S Small Business Administration (“SBA”) commercial loans; and an $88,000, or 14.9% increase in other noninterest income. Partially offsetting these increases was a $164,000 decline in gains from the sale of premises and equipment for the three months ended September 30, 2018 compared to the same period last year as there were no sales occurring during the current quarter.

Noninterest expense for the three months ended September 30, 2018 increased $997,000, or 4.8% to $21.9 million compared to $20.9 million for the three months ended September 30, 2017. The increase was primarily due to a $333,000, or 2.7% increase in salaries and employee benefits; a $304,000, or 19.7% increase in computer services; a $319,000, or 14.0% increase in other expenses, and a $259,000 increase in real estate owned ("REO") related expenses for the quarter ended September 30, 2018 compared to the quarter ended September 30, 2017. Partially offsetting these increases was the cumulative decrease of $192,000 or 5.5% in net occupancy expense; marketing and advertising; and core deposit amortization for the three months ended September 30, 2018 compared to the same period last year. Deposit insurance premiums decreased $110,000, or 26.6% due to reduced premiums as a result of higher levels of capital and lower nonaccrual loans. For the three months ended September 30, 2018, there was a $179,000 loss on REO sales compared to a $146,000 gain in the corresponding quarter last year offsetting the $66,000 decrease in REO expenses as a result of fewer REO properties held.

For the three months ended September 30, 2018, the Company's income tax expense declined to $2.2 million compared to $2.5 million for the three months ended September 30, 2017 despite the increase in pretax income. The Company’s federal income tax provision for the three months ended September 30, 2018 benefited from the impact of the Tax Cuts and Jobs Act enacted in December 2017 that lowered the corporate income tax rate from 34% to 21%.

Balance Sheet Review

Total assets increased $49.8 million, or 1.5% to $3.4 billion at September 30, 2018 from $3.3 billion at June 30, 2018. Total liabilities remained level at $2.9 billion at both September 30, 2018 and June 30, 2018. Deposit growth of $6.8 million, or 0.3%; a $40.0 million, or 6.3% increase in borrowings; and the cumulative decrease of $26.8 million, or 9.2% in cash and cash equivalents, certificates of deposit in other banks and investment securities were used to partially fund the $61.3 million, or 2.4% increase in total loans receivable, net of deferred loan fees and the $9.2 million, or 4.0% increase in commercial paper during the first three months of fiscal 2019. The increase in net loans receivable was driven by $76.8 million, or 13.0% annualized rate of organic loan growth partially offset by loan repayments. The $44.9 million, or 30.2% increase in commercial and industrial loans was driven by our new equipment finance line of business. The $4.9 million, or 83.4% increase in loans held for sale was due primarily to SBA loans originated during the period.

Stockholders' equity at September 30, 2018 increased $4.9 million, or 1.2% to $414.2 million from $409.2 million at June 30, 2018. The increase was due to $7.8 million in net income and $768,000 in stock-based compensation, partially offset by 128,300 shares of common stock repurchased at an average cost of $29.03, or approximately $3.7 million in total and a $291,000 decrease in other comprehensive income representing unrealized losses on investment securities, net of tax. As of September 30, 2018, HomeTrust Bank was considered "well capitalized" in accordance with its regulatory capital guidelines and exceeded all regulatory capital requirements with Common Equity Tier 1, Tier 1 Risk-Based, Total Risk-Based, and Tier 1 Leverage capital ratios of 11.72%, 11.72%, 12.44%, and 10.52%, respectively.  In addition, the Company exceeded all regulatory capital requirements as of that date.

Asset Quality

The allowance for loan losses was $20.9 million, or 0.81% of total loans, at September 30, 2018 compared to $21.1 million, or 0.83% of total loans, at June 30, 2018. The allowance for loan losses to total gross loans excluding acquired loans was 0.88% at September 30, 2018, compared to 0.91% at June 30, 2018.

There was no provision for losses on loans for the three months ended September 30, 2018 and 2017 reflecting the decline in nonaccruing and classified loans offset by loan growth. Net loan charge-offs totaled $128,000 for the three months ended September 30, 2018, compared to net loan recoveries of $846,000 for the same period in fiscal 2018. Net charge-offs as a percentage of average loans increased to 0.02% for the three months ended September 30, 2018 from net recoveries of (0.14)% for the same period last year.

Nonperforming assets decreased $1.2 million, or 8.2% to $13.4 million, or 0.40% of total assets, at September 30, 2018 compared to $14.6 million, or 0.44% of total assets at June 30, 2018. Nonperforming assets included $10.1 million in nonaccruing loans and $3.3 million in REO at September 30, 2018, compared to $10.9 million and $3.7 million, in nonaccruing loans and REO, respectively, at June 30, 2018. Included in nonperforming loans are $4.0 million of loans restructured from their original terms of which $2.3 million were current at September 30, 2018, with respect to their modified payment terms. At September 30, 2018, $5.5 million, or 54.4% of nonaccruing loans were current on their required loan payments. Purchased impaired loans aggregating $2.9 million obtained through prior acquisitions are excluded from nonaccruing loans due to the accretion of discounts established in accordance with the acquisition method of accounting for business combinations. Nonperforming loans to total loans was 0.39% at September 30, 2018 compared to 0.43% at June 30, 2018.

The ratio of classified assets to total assets decreased to 0.93% at September 30, 2018 from 1.00% at June 30, 2018. Classified assets decreased 6.1% to $31.0 million at September 30, 2018 compared to $33.1 million at June 30, 2018. Our overall asset quality metrics continue to demonstrate our commitment to growing and maintaining a loan portfolio with a moderate risk profile.

About HomeTrust Bancshares, Inc.

HomeTrust Bancshares, Inc. is the holding company for HomeTrust Bank. As of September 30, 2018, the Company had assets of $3.4 billion. The Bank, founded in 1926, is a North Carolina state chartered, community-focused financial institution committed to providing value added relationship banking through 43 locations as well as online/mobile channels. Locations include: North Carolina (including the Asheville metropolitan area, the "Piedmont" region, Charlotte, and Raleigh/Cary), Upstate South Carolina (Greenville), East Tennessee (including Kingsport/Johnson City/Bristol, Knoxville, and Morristown) and Southwest Virginia (including the Roanoke Valley). The Bank is the 2nd largest community bank headquartered in North Carolina.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements often include words such as "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could," or "may." Forward-looking statements are not historical facts but instead represent management's current expectations and forecasts regarding future events, many of which are inherently uncertain and outside of our control. Actual results may differ, possibly materially, from those currently expected or projected in these forward-looking statements. Factors that could cause our actual results to differ materially from those described in the forward-looking statements, include expected cost savings, synergies and other financial benefits from our acquisitions  might not be realized within the expected time frames or at all, and costs or difficulties relating to integration matters might be greater than expected; increased competitive pressures; changes in the interest rate environment; changes in general economic conditions and conditions within the securities markets; legislative and regulatory changes; and other factors described in HomeTrust's latest annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other documents filed with or furnished to the Securities and Exchange Commission - which are available on our website at www.htb.com and on the SEC's website at www.sec.gov. Any of the forward-looking statements that we make in this press release or the documents we file with or furnish to the SEC are based upon management's beliefs and assumptions at the time they are made and may turn out to be wrong because of inaccurate assumptions we might make, because of the factors described above or because of other factors that we cannot foresee. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for fiscal 2019 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us and could negatively affect our operating and stock performance.

WEBSITE: WWW.HOMETRUSTBANCSHARES.COM

Contact:  Dana L. Stonestreet – Chairman, President and Chief Executive Officer Tony J. VunCannon – Executive Vice President, Chief Financial Officer, and Treasurer
828-259-3939   

Consolidated Balance Sheets (Unaudited)

(Dollars in thousands)September 30,
2018 June 30,
2018(2) March 31, 
2018 December 31, 
2017 September 30,
2017Assets         Cash$39,872  $45,222  $38,100  $46,743  $38,162 Interest-bearing deposits18,896  25,524  41,296  51,922  40,809 Cash and cash equivalents58,768  70,746  79,396  98,665  78,971 Commercial paper238,224  229,070  239,435  199,722  199,774 Certificates of deposit in other banks58,384  66,937  84,218  100,349  110,454 Securities available for sale, at fair value148,704  154,993  160,971  167,669  182,053 Other investments, at cost43,996  41,931  41,405  43,319  42,307 Loans held for sale10,773  5,873  6,071  7,072  7,793 Total loans, net of deferred loan fees2,587,106  2,525,852  2,445,755  2,418,014  2,394,755 Allowance for loan losses(20,932) (21,060) (21,472) (21,090) (21,997)Net loans2,566,174  2,504,792  2,424,283  2,396,924  2,372,758 Premises and equipment, net62,681  62,537  62,725  62,435  62,614 Accrued interest receivable10,252  9,344  9,216  9,371  9,340 Real estate owned ("REO")3,286  3,684  5,053  4,818  5,941 Deferred income taxes30,942  32,565  34,311  36,526  55,653 Bank owned life insurance ("BOLI")88,581  88,028  87,532  86,984  86,561 Goodwill25,638  25,638  25,638  25,638  25,938 Core deposit intangibles3,963  4,528  5,131  5,773  6,454 Other assets3,593  3,503  5,478  5,323  3,687 Total Assets$3,353,959  $3,304,169  $3,270,863  $3,250,588  $3,249,998 Liabilities and Stockholders' Equity         Liabilities         Deposits$2,203,044  $2,196,253  $2,180,324  $2,108,208  $2,100,310 Borrowings675,000  635,000  625,000  685,000  679,800 Capital lease obligations1,905  1,914  1,920  1,925  1,931 Other liabilities59,815  61,760  62,066  60,094  62,458 Total liabilities2,939,764  2,894,927  2,869,310  2,855,227  2,844,499 Stockholders' Equity         Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued or outstanding—  —  —  —  — Common stock, $0.01 par value, 60,000,000 shares authorized (1)190  191  190  190  190 Additional paid in capital214,803  217,480  216,712  215,928  214,827 Retained earnings208,365  200,575  193,368  187,241  197,907 Unearned Employee Stock Ownership Plan ("ESOP") shares(7,274) (7,406) (7,538) (7,670) (7,803)Accumulated other comprehensive income (loss)(1,889) (1,598) (1,179) (328) 378 Total stockholders' equity414,195  409,242  401,553  395,361  405,499 Total Liabilities and Stockholders' Equity$3,353,959  $3,304,169  $3,270,863  $3,250,588  $3,249,998 

_________________________________

  1. Shares of common stock issued and outstanding were 18,939,280 at September 30, 2018; 19,041,668 at June 30, 2018; 19,034,868 at March 31, 2018; 18,967,175 at December 31, 2017; and 18,968,675 at September 30, 2017.
  2. Derived from audited financial statements.


Consolidated Statement of Income (Unaudited)

 Three Months Ended September 30, June 30, September 30,(Dollars in thousands)2018 2018 2017Interest and Dividend Income     Loans$28,728  $27,337  $25,250 Securities available for sale856  877  971 Certificates of deposit and other interest-bearing deposits1,857  1,969  1,169 Other investments839  510  626 Total interest and dividend income32,280  30,693  28,016 Interest Expense     Deposits2,750  2,249  1,346 Borrowings3,258  2,854  1,969 Total interest expense6,008  5,103  3,315 Net Interest Income26,272  25,590  24,701 Provision for Loan Losses—  —  — Net Interest Income after Provision for Loan Losses26,272  25,590  24,701 Noninterest Income     Service charges and fees on deposit accounts2,401  2,208  1,844 Loan income and fees1,998  1,579  1,102 BOLI income536  501  562 Gain from sale of premises and equipment—  —  164 Other, net678  926  590 Total noninterest income5,613  5,214  4,262 Noninterest Expense     Salaries and employee benefits12,685  11,918  12,352 Net occupancy expense2,347  2,478  2,349 Marketing and advertising417  372  453 Telephone, postage, and supplies769  777  685 Deposit insurance premiums304  373  414 Computer services1,849  1,700  1,545 Loss (gain) on sale and impairment of REO179  (25) (146)REO expense175  308  241 Core deposit intangible amortization565  603  719 Other2,593  3,082  2,274 Total noninterest expense21,883  21,586  20,886 Income Before Income Taxes10,002  9,218  8,077 Income Tax Expense2,212  2,011  2,510 Net Income$7,790  $7,207  $5,567             


Per Share Data

 Three months ended September 30, June 30, September 30, 2018 2018 2017Net income per common share:(1)     Basic$0.43  $0.40  $0.31 Diluted$0.41  $0.38  $0.30 Adjusted net income per common share:(2)     Basic$0.43  $0.38  $0.31 Diluted$0.41  $0.36  $0.30       Average shares outstanding:     Basic18,125,637  18,121,690  17,966,994 Diluted18,880,476  18,847,279  18,616,452 Book value per share at end of period$21.87  $21.49  $21.38 Tangible book value per share at end of period (2)$20.35  $19.96  $19.81 Total shares outstanding at end of period18,939,280  19,041,668  18,968,675 

__________________________________________________

  1. Basic and diluted net income per common share have been prepared in accordance with the two-class method.
  2. See Non-GAAP reconciliation tables below for adjustments.


Selected Financial Ratios and Other Data

  Three Months Ended  September 30, June 30, September 30,  2018 2018 2017Performance ratios: (1)      Return on assets (ratio of net income to average total assets) 0.94% 0.88% 0.70%Return on assets - adjusted(2) 0.94  0.83  0.70 Return on equity (ratio of net income to average equity) 7.55  7.12  5.55 Return on equity - adjusted(2) 7.55  6.75  5.58 Tax equivalent yield on earning assets(3) 4.23  4.10  3.90 Rate paid on interest-bearing liabilities 0.95  0.82  0.54 Tax equivalent average interest rate spread (3) 3.28  3.28  3.36 Tax equivalent net interest margin(3) (4) 3.45  3.43  3.44 Average interest-earning assets to average interest-bearing liabilities 121.97  121.27  120.67 Operating expense to average total assets 2.64  2.62  2.61 Efficiency ratio 68.63  70.08  72.11 Efficiency ratio - adjusted (2) 68.03  69.20  71.17 

_____________________________

  1. Ratios are annualized where appropriate.
  2. See Non-GAAP reconciliation tables below for adjustments.
  3. For the three months ended September 30, 2018, June 30, 2018, and September 30, 2017, the weighted average rate for municipal leases is adjusted for a 24%, 30%, and 37% combined federal and state tax rate, respectively since the interest from these leases is tax exempt.
  4. Net interest income divided by average interest-earning assets.
     At or For the Three Months Ended September 30, June 30, March 31, December 31, September 30, 2018 2018 2018 2017 2017Asset quality ratios:         Nonperforming assets to total assets(1)0.40% 0.44% 0.54% 0.59% 0.62%Nonperforming loans to total loans(1)0.39  0.43  0.52  0.59  0.59 Total classified assets to total assets0.93  1.00  1.29  1.39  1.50 Allowance for loan losses to nonperforming loans(1)207.06  192.96  169.71  146.79  156.17 Allowance for loan losses to total loans0.81  0.83  0.88  0.87  0.92 Allowance for loan losses to total gross loans excluding acquired loans(2)0.88  0.91  0.97  0.97  1.01 Net charge-offs (recoveries) to average loans (annualized)0.02  0.07  (0.06) 0.15  (0.14)Capital ratios:         Equity to total assets at end of period12.35% 12.39% 12.28% 12.16% 12.48%Tangible equity to total tangible assets(2)11.59  11.61  11.48  11.34  11.67 Average equity to average assets12.43  12.31  12.30  12.49  12.55 

__________________________________________

  1. Nonperforming assets include nonaccruing loans, consisting of certain restructured loans, and REO. There were no accruing loans more than 90 days past due at the dates indicated. At September 30, 2018, there were $4.0 million of restructured loans included in nonaccruing loans and $5.5 million, or 54.4% of nonaccruing loans were current on their loan payments. Purchased impaired loans acquired through bank acquisitions are excluded from nonaccruing loans due to the accretion of discounts in accordance with the acquisition method of accounting for business combinations.
  2. See Non-GAAP reconciliation tables below for adjustments.


Average Balance Sheet Data

 For the Three Months Ended September 30, 2018 2017 Average
Balance
Outstanding Interest
Earned/
Paid(2) Yield/
Rate(2) Average
Balance
Outstanding Interest
Earned/
Paid(2) Yield/
Rate(2)(Dollars in thousands) Assets:           Interest-earning assets:           Loans receivable(1)$2,557,970  $29,010  4.54% $2,361,522  $25,798  4.37%Deposits in other banks92,514  415  1.80% 159,152  536  1.35%Investment securities154,249  856  2.22% 189,920  972  2.05%Other interest-earning assets(3)271,223  2,280  3.36% 208,422  1,138  2.18%Total interest-earning assets3,075,956  32,561  4.23% 2,919,016  28,444  3.90%Other assets245,855      278,869     Total assets3,321,811      3,197,885     Liabilities and equity:           Interest-bearing deposits:           Interest-bearing checking accounts459,895  270  0.23% 462,928  216  0.19%Money market accounts677,329  957  0.57% 605,261  477  0.31%Savings accounts208,289  68  0.13% 232,940  78  0.13%Certificate accounts530,507  1,455  1.10% 449,839  575  0.51%Total interest-bearing deposits1,876,020  2,750  0.59% 1,750,968  1,346  0.31%Borrowings645,859  3,258  2.02% 668,091  1,969  1.18%Total interest-bearing liabilities2,521,879  6,008  0.95% 2,419,059  3,315  0.55%Noninterest-bearing deposits323,781      310,596     Other liabilities63,282      66,808     Total liabilities2,908,943      2,796,463     Stockholders' equity412,868      401,422     Total liabilities and stockholders' equity$3,321,811      $3,197,885                 Net earning assets$554,077      $499,957     Average interest-earning assets to           average interest-bearing liabilities121.97%     120.67%    Tax-equivalent:           Net interest income  $26,553      $25,129   Interest rate spread    3.28%     3.35%Net interest margin(4)    3.45%     3.44%Non-tax-equivalent:           Net interest income  $26,272      $24,581   Interest rate spread    3.25%     3.27%Net interest margin(4)    3.42%     3.37%

__________________

  1. The average loans receivable, net balances include loans held for sale and nonaccruing loans.
  2. Interest income used in the average interest earned and yield calculation includes the tax equivalent adjustment of $281 and $548 for the three months ended September 30, 2018 and 2017, respectively, calculated based on a combined federal and state tax rate of 24% and 37%, respectively.
  3. The average other interest-earning assets consists of FRB stock, FHLB stock, Small Business Investment Company ("SBIC") investments, and commercial paper.
  4. Net interest income divided by average interest-earning assets.


Loans

(Dollars in thousands)September 30,
2018 June 30,
2018 March 31,
2018 December 31,
2017 September 30,
2017Retail consumer loans:         One-to-four family$656,011  $664,289  $670,036  $686,229  $684,956 HELOCs - originated135,512  137,564  143,049  150,084  152,979 HELOCs - purchased150,733  166,276  165,680  162,181  162,518 Construction and land/lots75,433  65,601  68,121  60,805  54,969 Indirect auto finance173,305  173,095  160,664  150,042  142,915 Consumer13,139  12,379  11,317  9,699  8,814 Total retail consumer loans1,204,133  1,219,204  1,218,867  1,219,040  1,207,151 Commercial loans:         Commercial real estate879,184  857,315  810,332  786,381  753,857 Construction and development198,809  192,102  184,179  185,921  209,672 Commercial and industrial193,739  148,823  132,337  127,709  124,722 Municipal leases111,951  109,172  101,108  100,205  100,638 Total commercial loans1,383,683  1,307,412  1,227,956  1,200,216  1,188,889 Total loans2,587,816  2,526,616  2,446,823  2,419,256  2,396,040 Deferred loan fees, net(710) (764) (1,068) (1,242) (1,285)Total loans, net of deferred loan fees2,587,106  2,525,852  2,445,755  2,418,014  2,394,755 Allowance for loan losses(20,932) (21,060) (21,472) (21,090) (21,997)Loans, net$2,566,174  $2,504,792  $2,424,283  $2,396,924  $2,372,758                     

Deposits

(Dollars in thousands)September 30,
2018 June 30,
2018 March 31,
2018 December 31,
2017 September 30,
2017Core deposits:         Noninterest-bearing accounts$313,110  $317,822  $303,875  $313,493  $304,144 NOW accounts462,694  471,364  496,934  489,668  464,992 Money market accounts687,148  677,665  659,791  638,259  642,351 Savings accounts203,372  213,250  220,497  224,732  230,944 Total core deposits1,666,324  1,680,101  1,681,097  1,666,152  1,642,431 Certificates of deposit536,720  516,152  499,227  442,056  457,879 Total$2,203,044  $2,196,253  $2,180,324  $2,108,208  $2,100,310                     

Non-GAAP Reconciliations

In addition to results presented in accordance with generally accepted accounting principles utilized in the United States ("GAAP"), this earnings release contains certain non-GAAP financial measures, which include: the efficiency ratio; tangible book value; tangible book value per share; tangible equity to tangible assets ratio; net income excluding certain state income tax expense, adjustments for the change in federal tax law, and gain from the sale of premises and equipment; earnings per share ("EPS"), return on assets ("ROA"), and return on equity ("ROE") excluding certain state income tax expense, adjustments for the change in federal tax law, and gain from the sale of premises and equipment; and the ratio of the allowance for loan losses to total loans excluding acquired loans. The Company believes these non-GAAP financial measures and ratios as presented are useful for both investors and management to understand the effects of certain items and provides an alternative view of the Company's performance over time and in comparison to the Company's competitors. These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for total stockholders' equity or operating results determined in accordance with GAAP.  These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

Set forth below is a reconciliation to GAAP of our efficiency ratio:

     Three Months Ended(Dollars in thousands) September 30, June 30, September 30,  2018 2018 2017Noninterest expense $21,883  $21,586  $20,886        Net interest income $26,272  $25,590  $24,701 Plus noninterest income 5,613  5,214  4,262 Plus tax equivalent adjustment 281  390  548 Less gain on sale of premises and equipment —  —  164 Net interest income plus noninterest income – as adjusted $32,166  $31,194  $29,347 Efficiency ratio 68.03% 69.20% 71.17%Efficiency ratio (without adjustments) 68.63% 70.08% 72.11%          

Set forth below is a reconciliation to GAAP of tangible book value and tangible book value per share:

     As of(Dollars in thousands, except per share data) September 30, June 30, March 31, December 31, September 30,  2018 2018 2018 2017 2017Total stockholders' equity $414,195  $409,242  $401,553  $395,361  $405,499 Less: goodwill, core deposit intangibles, net of taxes 28,690  29,125  29,589  30,083  29,704 Tangible book value (1) $385,505  $380,117  $371,964  $365,278  $375,795 Common shares outstanding 18,939,280  19,041,668  19,034,868  18,967,175  18,968,675 Tangible book value per share $20.35  $19.96  $19.54  $19.26  $19.81 Book value per share $21.87  $21.49  $21.10  $20.84  $21.38 
  1. Tangible book value is equal to total stockholders' equity less goodwill and core deposit intangibles, net of related deferred tax liabilities.


Set forth below is a reconciliation to GAAP of tangible equity to tangible assets:

     As of  September 30, June 30, March 31, December 31, September 30,  2018 2018 2018 2017 2017  (Dollars in thousands)Tangible equity(1) $385,505  $380,117  $371,964  $365,278  $375,795 Total assets 3,353,959  3,304,169  3,270,863  3,250,588  3,249,998 Less: goodwill, core deposit intangibles, net of taxes 28,690  29,125  29,589  30,083  29,704 Total tangible assets(2) $3,325,269  $3,275,044  $3,241,274  $3,220,505  $3,220,294 Tangible equity to tangible assets 11.59% 11.61% 11.48% 11.34% 11.67%
  1. Tangible equity (or tangible book value) is equal to total stockholders' equity less goodwill and core deposit intangibles, net of related deferred tax liabilities.
  2. Total tangible assets is equal to total assets less goodwill and core deposit intangibles, net of related deferred tax liabilities.


Set forth below is a reconciliation to GAAP of net income and earnings per share (EPS) as adjusted to exclude state tax expense rate change, federal tax law rate change, and gain from sale of premises and equipment:

  Three Months Ended(Dollars in thousands, except per share data) September 30, June 30, September 30,  2018 2018 2017State tax expense adjustment (1) —  (275) 133 Change in federal tax law adjustment (2) —  (103) — Gain from sale of premises and equipment —  —  (164)Total adjustments —  (378) (31)Tax effect —  —  59 Total adjustments, net of tax —  (378) 28        Net income (GAAP) 7,790  7,207  5,567        Net income (non-GAAP) $7,790  $6,829  $5,595        Per Share Data      Average shares outstanding - basic 18,125,637  18,121,690  17,966,994 Average shares outstanding - diluted 18,880,476  18,847,279  18,616,452        Basic EPS      EPS (GAAP) $0.43  $0.40  $0.31 Non-GAAP adjustment —  (0.02) — EPS (non-GAAP) $0.43  $0.38  $0.31        Diluted EPS      EPS (GAAP) $0.41  $0.38  $0.30 Non-GAAP adjustment —  (0.02) — EPS (non-GAAP) $0.41  $0.36  $0.30        Average Balances      Average assets $3,321,811  $3,289,437  $3,197,885 Average equity 412,868  404,832  401,422        ROA      ROA (GAAP) 0.94% 0.88% 0.70%Non-GAAP adjustment —% (0.05)% —%ROA (non-GAAP) 0.94% 0.83% 0.70%       ROE      ROE (GAAP) 7.55% 7.12% 5.55%Non-GAAP adjustment —% (0.37)% 0.03%ROE (non-GAAP) 7.55% 6.75% 5.58%
  1. State tax adjustment is a result of various revaluations of state deferred tax assets.
  2. Revaluation and related adjustments of net deferred tax assets due to the Tax Cuts and Jobs Act.


Set forth below is a reconciliation to GAAP of the allowance for loan losses to total loans and the allowance for loan losses as adjusted to exclude acquired loans:

     As of(Dollars in thousands) September 30, June 30, March 31, December 31, September 30,  2018 2018 2018 2017 2017Total gross loans receivable (GAAP) $2,587,816  $2,526,616  $2,446,823  $2,419,256  $2,396,040 Less: acquired loans 253,695  271,801  288,847  311,508  338,933 Adjusted loans (non-GAAP) $2,334,121  $2,254,815  $2,157,976  $2,107,748  $2,057,107            Allowance for loan losses (GAAP) $20,932  $21,060  $21,472  $21,090  $21,997 Less: allowance for loan losses on acquired loans 295  483  459  566  1,197 Adjusted allowance for loan losses $20,637  $20,577  $21,013  $20,524  $20,800 Adjusted allowance for loan losses / Adjusted loans (non-GAAP) 0.88% 0.91% 0.97% 0.97% 1.01%                
Categories: State
Syndicate content

About us | Advertise | Help | Privacy Policy | Subscriptions, RSS © 2009 The Progress News . All Rights Reserved .