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First Community Bankshares, Inc. Announces Second Quarter 2022 Results and Increased Quarterly Cash Dividend

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First Community Bankshares, Inc.
First Community Bankshares, Inc.

BLUEFIELD, Va., July 26, 2022 (GLOBE NEWSWIRE) -- First Community Bankshares, Inc. (NASDAQ: FCBC) (www.firstcommunitybank.com) (the “Company”) today reported its unaudited results of operations and other financial information for the quarter ended June 30, 2022. The Company reported net income of $11.21 million, or $0.67 per diluted common share, for the quarter ended June 30, 2022. Net income for the six months ended June 30, 2022, was $20.73 million or $1.24 per diluted common share.

The Company also declared a quarterly cash dividend to common shareholders of twenty-nine cents ($0.29) per common share, an increase of two cents ($0.02), or 7.41%, over the quarterly dividend declared in the same quarter of 2021.  The quarterly dividend is also an increase of two cents ($0.02) from the dividends declared in the previous two quarters of 2022.  The quarterly dividend is payable to common shareholders of record on August 5, 2022, and is expected to be paid on or about August 19, 2022.  This marks the 37th consecutive year of regular dividends to common shareholders.

Second Quarter 2022 and Current Highlights

Income Statement

  • Net income of $11.21 million for the quarter was a decrease compared to the same quarter of 2021, which included a significant reversal of provision for credit losses. The normalized provision for credit losses drove much of the difference between current year-to-date net income of $20.73 million and the same period in 2021.

  • Interest income from securities of $1.55 million was an increase of $1.12 million over the second quarter of 2021, as the Company added to its portfolio with a significant weighting toward 2-year treasury securities. Interest on fed funds also increased $602 thousand to $768 thousand for the second quarter as a result of the Federal Open Market Committee’s 150 basis point increase in overnight rates.

  • The total cost of funds remained very low at 0.06%, a decrease of 0.05% from the second quarter of 2021.

  • Despite the significant increase in credit loss provision over 2021, annualized return on average assets was 1.38% for the second quarter and 1.29% for the first six months of 2022. Annualized return on average common equity was 10.61% for the second quarter and 9.80% for the first half of 2022.

  • Net interest margin for the second quarter was 3.78%, which was a 10 basis point increase from 3.68% reported for second quarter of 2021.   The yield on earning assets increased 6 basis points, primarily driven by an increase in the yields on overnight funds. The cost of interest-bearing deposits declined 6 basis points to 0.09%, primarily driven by a decrease in the cost of time deposits.

  • Salaries and employee benefits for the second quarter increased $1.30 million, or 12.74%, over the same quarter in 2021. Salaries and employee benefits for the first six months increased $2.09 million, or 9.90%, over the first six months of 2021. During the first quarter of 2022, the Company implemented annualized wage increases of approximately $2.5 million as part of its ongoing strategic initiative to enhance Human Capital Management, which included an increased minimum wage.

Balance Sheet and Asset Quality

  • The Company’s loan portfolio increased by $134.23 million, an annualized growth rate of 12.50%, during the first six months of 2022. Loan demand and originations were strong in all categories, including construction, commercial real estate, residential mortgage, and consumer loans.

  • During the second quarter, the Company repurchased 283,507 of its common shares for $7.95 million. The Company repurchased 415,507 common shares for $12.03 million during the six months of 2022.

  • Non-performing loans to total loans remained very low at 0.80% of total loans and continues the declining trend experienced over the past four quarters. The Company experienced net recoveries for the second quarter of 2022 of $258 thousand, or 0.05% of annualized average loans, compared to net charge-offs of $476 thousand, or 0.09% of annualized average loans, for the same period in 2021. Net charge-offs for the six-month period ended June 30, 2022, were $580 thousand, or 0.05% of annualized average loans, compared to net charge-offs of $1.20 million, or 0.11% of annualized average loans, for the same period in 2021.

  • The allowance for credit losses to total loans remained at 1.29% of total loans.

  • Book value per share at June 30, 2022, was $25.33, a slight decrease of $0.01 from year-end 2021.

Non-GAAP Financial Measures

In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures that provide useful information for financial and operational decision making, evaluating trends, and comparing financial results to other financial institutions. The non-GAAP financial measures presented in this news release include “tangible book value per common share,” “return on average tangible common equity,” “adjusted earnings,” “adjusted diluted earnings per share,” “adjusted return on average assets,” “adjusted return on average common equity,” “adjusted return on average tangible common equity,” and certain financial measures presented on a fully taxable equivalent (“FTE”) basis. FTE basis is calculated using the federal statutory income tax rate of 21%.  While the Company believes certain non-GAAP financial measures enhance the understanding of its business and performance, they are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions.

About First Community Bankshares, Inc.

First Community Bankshares, Inc., a financial holding company headquartered in Bluefield, Virginia, provides banking products and services through its wholly owned subsidiary First Community Bank. First Community Bank operated 49 branch banking locations in Virginia, West Virginia, North Carolina, and Tennessee as of June 30, 2022. First Community Bank offers wealth management and investment advice and services through its Trust Division and through its wholly owned subsidiary, First Community Wealth Management, which collectively managed and administered $1.20 billion in combined assets as of June 30, 2022. The Company reported consolidated assets of $3.26 billion as of June 30, 2022. The Company’s common stock is listed on the NASDAQ Global Select Market under the trading symbol, “FCBC”. Additional investor information is available on the Company’s website at www.firstcommunitybank.com.

This news release may include forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks detailed from time to time in the Company’s Securities and Exchange Commission reports including, but not limited to, the Annual Report on Form 10-K for the most recent fiscal year end. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

March 31,

 

December 31,

September 30,

June 30,

 

June 30,

(Amounts in thousands, except share and per share data)

 

2022

 

 

 

2022

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

$

25,651

 

 

$

24,641

 

 

$

25,236

 

 

$

25,119

 

 

$

25,937

 

 

$

50,292

 

 

$

52,477

 

 

Interest on securities

 

1,551

 

 

 

750

 

 

 

362

 

 

 

445

 

 

 

435

 

 

 

2,301

 

 

 

930

 

 

Interest on deposits in banks

 

768

 

 

 

248

 

 

 

234

 

 

 

225

 

 

 

166

 

 

 

1,016

 

 

 

282

 

Total interest income

 

27,970

 

 

 

25,639

 

 

 

25,832

 

 

 

25,789

 

 

 

26,538

 

 

 

53,609

 

 

 

53,689

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

422

 

 

 

486

 

 

 

600

 

 

 

642

 

 

 

724

 

 

 

908

 

 

 

1,593

 

 

Interest on borrowings

 

1

 

 

 

-

 

 

 

-

 

 

 

1

 

 

 

-

 

 

 

1

 

 

 

-

 

Total interest expense

 

423

 

 

 

486

 

 

 

600

 

 

 

643

 

 

 

724

 

 

 

909

 

 

 

1,593

 

Net interest income

 

27,547

 

 

 

25,153

 

 

 

25,232

 

 

 

25,146

 

 

 

25,814

 

 

 

52,700

 

 

 

52,096

 

(Recovery of) provision for credit losses

 

510

 

 

 

1,961

 

 

 

(846

)

 

 

(1,394

)

 

 

(2,230

)

 

 

2,471

 

 

 

(6,231

)

Net interest income after provision

 

27,037

 

 

 

23,192

 

 

 

26,078

 

 

 

26,540

 

 

 

28,044

 

 

 

50,229

 

 

 

58,327

 

Noninterest income

 

8,854

 

 

 

9,194

 

 

 

9,215

 

 

 

8,720

 

 

 

8,797

 

 

 

18,048

 

 

 

16,366

 

Noninterest expense

 

21,255

 

 

 

19,986

 

 

 

21,701

 

 

 

18,836

 

 

 

19,361

 

 

 

41,241

 

 

 

38,181

 

Income before income taxes

 

14,636

 

 

 

12,400

 

 

 

13,592

 

 

 

16,424

 

 

 

17,480

 

 

 

27,036

 

 

 

36,512

 

Income tax expense

 

3,423

 

 

 

2,885

 

 

 

3,037

 

 

 

3,816

 

 

 

4,077

 

 

 

6,308

 

 

 

8,507

 

Net income

$

11,213

 

 

$

9,515

 

 

$

10,555

 

 

$

12,608

 

 

$

13,403

 

 

$

20,728

 

 

$

28,005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.67

 

 

$

0.57

 

 

$

0.62

 

 

$

0.73

 

 

$

0.77

 

 

$

1.24

 

 

$

1.59

 

 

Diluted

 

0.67

 

 

 

0.56

 

 

 

0.62

 

 

 

0.73

 

 

 

0.76

 

 

 

1.24

 

 

 

1.59

 

Cash dividends per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regular

 

0.27

 

 

 

0.27

 

 

 

0.27

 

 

 

0.27

 

 

 

0.25

 

 

 

0.54

 

 

 

0.50

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

16,662,817

 

 

 

16,817,284

 

 

 

16,974,005

 

 

 

17,221,244

 

 

 

17,486,182

 

 

 

16,739,624

 

 

 

17,577,552

 

 

Diluted

 

16,682,615

 

 

 

16,864,515

 

 

 

17,038,980

 

 

 

17,279,576

 

 

 

17,536,144

 

 

 

16,772,847

 

 

 

17,631,330

 

Performance ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.38

%

 

 

1.20

%

 

 

1.32

%

 

 

1.59

%

 

 

1.70

%

 

 

1.29

%

 

 

1.82

%

 

Return on average common equity

 

10.61

%

 

 

8.98

%

 

 

9.77

%

 

 

11.65

%

 

 

12.55

%

 

 

9.80

%

 

 

13.24

%

 

Return on average tangible common equity(1)

 

15.56

%

 

 

13.10

%

 

 

14.28

%

 

 

17.04

%

 

 

18.40

%

 

 

14.32

%

 

 

19.45

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) A non-GAAP financial measure defined as net income divided by average stockholders' equity less average goodwill and other intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


CONDENSED CONSOLIDATED QUARTERLY NONINTEREST INCOME AND EXPENSE (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

March 31,

 

December 31,

September 30,

June 30,

 

June 30,

(Amounts in thousands)

 

2022

 

 

2022

 

 

2021

 

 

2021

 

 

2021

 

 

2022

 

 

2021

 

Noninterest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wealth management

$

993

 

$

972

 

$

940

 

$

974

 

$

1,058

 

 

$

1,965

 

$

1,939

 

 

Service charges on deposits

 

3,672

 

 

3,498

 

 

3,718

 

 

3,599

 

 

3,098

 

 

 

7,170

 

 

6,129

 

 

Other service charges and fees

 

3,297

 

 

3,017

 

 

3,091

 

 

3,143

 

 

3,166

 

 

 

6,314

 

 

6,188

 

 

Net FDIC indemnification asset amortization

 

-

 

 

-

 

 

-

 

 

-

 

 

(946

)

 

 

-

 

 

(1,226

)

 

Other operating income

 

892

 

 

1,707

 

 

1,466

 

 

1,004

 

 

2,421

 

 

 

2,599

 

 

3,336

 

Total noninterest income

$

8,854

 

$

9,194

 

$

9,215

 

 

$

8,720

 

$

8,797

 

 

$

18,048

 

$

16,366

 

Noninterest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

$

11,518

 

$

11,671

 

$

12,493

 

$

10,646

 

$

10,216

 

 

$

23,189

 

$

21,100

 

 

Occupancy expense

 

1,165

 

 

1,269

 

 

1,368

 

 

1,155

 

 

1,115

 

 

 

2,434

 

 

2,390

 

 

Furniture and equipment expense

 

1,496

 

 

1,614

 

 

1,418

 

 

1,385

 

 

1,457

 

 

 

3,110

 

 

2,824

 

 

Service fees

 

2,563

 

 

1,503

 

 

1,946

 

 

1,530

 

 

1,513

 

 

 

4,066

 

 

2,848

 

 

Advertising and public relations

 

577

 

 

540

 

 

589

 

 

536

 

 

616

 

 

 

1,117

 

 

951

 

 

Professional fees

 

544

 

 

453

 

 

455

 

 

313

 

 

290

 

 

 

997

 

 

756

 

 

Amortization of intangibles

 

360

 

 

357

 

 

364

 

 

365

 

 

360

 

 

 

717

 

 

717

 

 

FDIC premiums and assessments

 

257

 

 

218

 

 

213

 

 

216

 

 

204

 

 

 

475

 

 

403

 

 

Other operating expense

 

2,775

 

 

2,361

 

 

2,855

 

 

2,690

 

 

3,590

 

 

 

5,136

 

 

6,192

 

Total noninterest expense

$

21,255

 

$

19,986

 

$

21,701

 

$

18,836

 

$

19,361

 

 

$

41,241

 

$

38,181

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EARNINGS (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

Six Months Ended

 

 

 

June 30,

 

March 31,

 

December 31,

 

September 30,

June 30,

 

June 30,

 

 

 

 

2022

 

 

 

2022

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

(Amounts in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

11,213

 

 

$

9,515

 

 

$

10,555

 

 

$

12,608

 

 

$

13,403

 

 

$

28,005

 

 

$

28,005

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (gain) loss on sale of securities

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

Merger, acquisition, and divestiture expense

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

Other items(1)

 

(92

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total adjustments

 

(92

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Tax effect

 

(22

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Adjusted earnings, non-GAAP

$

11,143

 

 

$

9,515

 

 

$

10,555

 

 

$

12,608

 

 

$

13,403

 

 

$

28,005

 

 

$

28,005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted diluted earnings per common share,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

non-GAAP

$

0.67

 

 

$

0.56

 

 

$

0.62

 

 

$

0.73

 

 

$

0.76

 

 

$

1.59

 

 

$

1.59

 

Performance ratios, non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted return on average assets

 

1.37

%

 

 

1.20

%

 

 

1.32

%

 

 

1.59

%

 

 

1.70

%

 

 

1.82

%

 

 

1.82

%

 

Adjusted return on average common equity

 

10.55

%

 

 

8.98

%

 

 

9.77

%

 

 

11.65

%

 

 

12.55

%

 

 

13.24

%

 

 

13.24

%

 

Adjusted return on average tangible

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

common equity(2)

 

15.46

%

 

 

13.10

%

 

 

14.28

%

 

 

17.04

%

 

 

18.40

%

 

 

19.45

%

 

 

19.45

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes other non-recurring income and expense items

 

(2) A non-GAAP financial measure defined as adjusted earnings divided by average stockholders' equity less average goodwill and other intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

2022

 

2021

 

 

Average

 

 

 

Average Yield/

 

Average

 

 

 

Average Yield/

(Amounts in thousands)

Balance

 

Interest(1)

 

Rate(1)

 

Balance

 

Interest(1)

 

Rate(1)

Assets

 

 

 

 

 

 

 

 

 

 

 

Earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Loans(2)(3)

$

2,273,844

 

$

25,714

 

4.54

%

 

$

2,134,136

 

$

25,979

 

4.88

%

 

Securities available for sale

 

280,823

 

 

1,597

 

2.28

%

 

 

84,099

 

 

508

 

2.42

%

 

Interest-bearing deposits

 

377,931

 

 

769

 

0.82

%

 

 

610,148

 

 

166

 

0.11

%

Total earning assets

 

2,932,598

 

 

28,080

 

3.84

%

 

 

2,828,383

 

 

26,653

 

3.78

%

Other assets

 

331,774

 

 

 

 

 

 

331,563

 

 

 

 

Total assets

$

3,264,372

 

 

 

 

 

$

3,159,946

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

$

698,978

 

$

29

 

0.02

%

 

$

654,767

 

$

33

 

0.02

%

 

Savings deposits

 

895,370

 

 

67

 

0.03

%

 

 

818,490

 

 

63

 

0.03

%

 

Time deposits

 

331,555

 

 

326

 

0.39

%

 

 

394,889

 

 

628

 

0.64

%

Total interest-bearing deposits

 

1,925,903

 

 

422

 

0.09

%

 

 

1,868,146

 

 

724

 

0.15

%

Borrowings

 

 

 

 

 

 

 

 

 

 

 

 

Retail repurchase agreements

 

2,105

 

 

1

 

0.08

%

 

 

1,266

 

 

-

 

N/M

Total borrowings

 

2,105

 

 

1

 

0.08

%

 

 

1,266

 

 

-

 

N/M

Total interest-bearing liabilities

 

1,928,008

 

 

423

 

0.09

%

 

 

1,869,412

 

 

724

 

0.16

%

Noninterest-bearing demand deposits

 

874,507

 

 

 

 

 

 

824,888

 

 

 

 

Other liabilities

 

38,106

 

 

 

 

 

 

37,306

 

 

 

 

Total liabilities

 

2,840,621

 

 

 

 

 

 

2,731,606

 

 

 

 

Stockholders' equity

 

423,751

 

 

 

 

 

 

428,340

 

 

 

 

Total liabilities and stockholders' equity

$

3,264,372

 

 

 

 

 

$

3,159,946

 

 

 

 

Net interest income, FTE(1)

 

 

$

27,657

 

 

 

 

 

$

25,929

 

 

Net interest rate spread

 

 

 

 

3.75

%

 

 

 

 

 

3.62

%

Net interest margin, FTE(1)

 

 

 

 

3.78

%

 

 

 

 

 

3.68

%

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%.

(2) Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual.

(3) Interest on loans includes non-cash and accelerated purchase accounting accretion of $870 thousand and $1.25 million for the three months ended June 30, 2022 and 2021, respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 


AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

2022

 

2021

 

 

Average

 

 

 

Average Yield/

 

Average

 

 

 

Average Yield/

(Amounts in thousands)

Balance

 

Interest(1)

 

Rate(1)

 

Balance

 

Interest(1)

 

Rate(1)

Assets

 

 

 

 

 

 

 

 

 

 

 

Earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Loans(2)(3)

$

2,237,128

 

$

50,412

 

4.54

%

 

$

2,149,509

 

$

52,561

 

4.93

%

 

Securities available for sale

 

211,285

 

 

2,397

 

2.29

%

 

 

83,868

 

 

1,081

 

2.60

%

 

Interest-bearing deposits

 

460,864

 

 

1,018

 

0.45

%

 

 

539,500

 

 

284

 

0.11

%

Total earning assets

 

2,909,277

 

 

53,827

 

3.73

%

 

 

2,772,877

 

 

53,926

 

3.92

%

Other assets

 

330,003

 

 

 

 

 

 

331,524

 

 

 

 

Total assets

$

3,239,280

 

 

 

 

 

$

3,104,401

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

$

689,149

 

$

57

 

0.02

%

 

$

634,000

 

$

72

 

0.02

%

 

Savings deposits

 

888,371

 

 

133

 

0.03

%

 

 

798,571

 

 

154

 

0.04

%

 

Time deposits

 

339,186

 

 

718

 

0.43

%

 

 

403,888

 

 

1,367

 

0.68

%

Total interest-bearing deposits

 

1,916,706

 

 

908

 

0.10

%

 

 

1,836,459

 

 

1,593

 

0.16

%

Borrowings

 

 

 

 

 

 

 

 

 

 

 

 

Retail repurchase agreements

 

2,050

 

 

1

 

0.08

%

 

 

1,250

 

 

-

 

N/M

Total borrowings

 

2,050

 

 

1

 

0.08

%

 

 

1,250

 

 

-

 

N/M

Total interest-bearing liabilities

 

1,918,756

 

 

909

 

0.10

%

 

 

1,837,709

 

 

1,593

 

0.17

%

Noninterest-bearing demand deposits

 

855,321

 

 

 

 

 

 

801,512

 

 

 

 

Other liabilities

 

38,529

 

 

 

 

 

 

38,609

 

 

 

 

Total liabilities

 

2,812,606

 

 

 

 

 

 

2,677,830

 

 

 

 

Stockholders' equity

 

426,674

 

 

 

 

 

 

426,571

 

 

 

 

Total liabilities and stockholders' equity

$

3,239,280

 

 

 

 

 

$

3,104,401

 

 

 

 

Net interest income, FTE(1)

 

 

$

52,918

 

 

 

 

 

$

52,333

 

 

Net interest rate spread

 

 

 

 

3.64

%

 

 

 

 

 

3.75

%

Net interest margin, FTE(1)

 

 

 

 

3.67

%

 

 

 

 

 

3.81

%

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%.

(2) Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual.

(3) Interest on loans includes non-cash and accelerated purchase accounting accretion of $1.74 million and $2.44 million for the six months ended June 30, 2022 and 2021, respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 


CONDENSED CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

March 31,

 

December 31,

 

September 30,

June 30,

(Amounts in thousands, except per share data)

 

2022

 

 

 

2022

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

Assets

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

398,242

 

 

$

457,306

 

 

$

677,439

 

 

$

635,007

 

 

$

618,738

 

Debt securities available for sale

 

287,767

 

 

 

268,703

 

 

 

76,292

 

 

 

77,440

 

 

 

79,842

 

Loans held for investment, net of unearned income

 

 

 

 

 

 

 

 

 

 

(includes covered loans of $7,503 for June 30, 2021) (1)

 

 

2,299,798

 

 

 

2,244,296

 

 

 

2,165,569

 

 

 

2,152,103

 

 

 

2,153,731

 

 

Allowance for credit losses

 

(29,749

)

 

 

(28,981

)

 

 

(27,858

)

 

 

(29,877

)

 

 

(31,857

)

Loans held for investment, net

 

2,270,049

 

 

 

2,215,315

 

 

 

2,137,711

 

 

 

2,122,226

 

 

 

2,121,874

 

Premises and equipment, net

 

49,752

 

 

 

50,912

 

 

 

52,284

 

 

 

52,842

 

 

 

53,560

 

Other real estate owned

 

579

 

 

 

848

 

 

 

1,015

 

 

 

1,240

 

 

 

1,324

 

Interest receivable

 

8,433

 

 

 

8,100

 

 

 

7,900

 

 

 

8,146

 

 

 

8,480

 

Goodwill

 

129,565

 

 

 

129,565

 

 

 

129,565

 

 

 

129,565

 

 

 

129,565

 

Other intangible assets

 

4,905

 

 

 

5,266

 

 

 

5,622

 

 

 

5,987

 

 

 

6,352

 

Other assets

 

109,085

 

 

 

108,112

 

 

 

106,691

 

 

 

107,258

 

 

 

109,548

 

Total assets

$

3,258,377

 

 

$

3,244,127

 

 

$

3,194,519

 

 

$

3,139,711

 

 

$

3,129,283

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing

$

877,962

 

 

$

860,652

 

 

$

842,783

 

 

$

820,147

 

 

$

819,138

 

 

Interest-bearing

 

1,920,577

 

 

 

1,922,292

 

 

 

1,886,608

 

 

 

1,853,699

 

 

 

1,846,556

 

Total deposits

 

2,798,539

 

 

 

2,782,944

 

 

 

2,729,391

 

 

 

2,673,846

 

 

 

2,665,694

 

Securities sold under agreements to repurchase

 

2,635

 

 

 

2,488

 

 

 

1,536

 

 

 

1,106

 

 

 

994

 

Interest, taxes, and other liabilities

 

39,157

 

 

 

34,539

 

 

 

35,817

 

 

 

37,395

 

 

 

35,061

 

Total liabilities

 

2,840,331

 

 

 

2,819,971

 

 

 

2,766,744

 

 

 

2,712,347

 

 

 

2,701,749

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

 

 

Common stock

 

16,502

 

 

 

16,782

 

 

 

16,878

 

 

 

17,071

 

 

 

17,335

 

Additional paid-in capital

 

136,705

 

 

 

144,088

 

 

 

147,619

 

 

 

154,086

 

 

 

161,853

 

Retained earnings

 

276,499

 

 

 

269,798

 

 

 

264,824

 

 

 

258,860

 

 

 

250,911

 

Accumulated other comprehensive loss

 

(11,660

)

 

 

(6,512

)

 

 

(1,546

)

 

 

(2,653

)

 

 

(2,565

)

Total stockholders' equity

 

418,046

 

 

 

424,156

 

 

 

427,775

 

 

 

427,364

 

 

 

427,534

 

Total liabilities and stockholders' equity

$

3,258,377

 

 

$

3,244,127

 

 

$

3,194,519

 

 

$

3,139,711

 

 

$

3,129,283

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding at period-end

 

16,502,144

 

 

 

16,781,975

 

 

 

16,878,220

 

 

 

17,071,052

 

 

 

17,334,547

 

Book value per common share

$

25.33

 

 

$

25.27

 

 

$

25.34

 

 

$

25.03

 

 

$

24.66

 

Tangible book value per common share(2)

 

17.18

 

 

 

17.24

 

 

 

17.34

 

 

 

17.09

 

 

 

16.82

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) FDIC Loss Share agreement terminated in September 2021.

(2) A non-GAAP financial measure defined as stockholders' equity less goodwill and other intangible assets, divided by shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 


SELECTED CREDIT QUALITY INFORMATION (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

March 31,

 

December 31,

September 30,

June 30,

(Amounts in thousands)

 

 

2022

 

 

 

2022

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

Allowance for Credit Losses

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

28,981

 

 

$

27,858

 

 

$

29,877

 

 

$

31,857

 

 

$

34,563

 

Provision for (recovery of)

 

 

 

 

 

 

 

 

 

 

credit/loan losses charged to operations

 

 

510

 

 

 

1,961

 

 

 

(846

)

 

 

(1,394

)

 

 

(2,230

)

Charge-offs

 

 

(1,469

)

 

 

(1,302

)

 

 

(1,887

)

 

 

(1,255

)

 

 

(1,902

)

Recoveries

 

 

1,727

 

 

 

464

 

 

 

714

 

 

 

669

 

 

 

1,426

 

Net recoveries (charge-offs)

 

 

258

 

 

 

(838

)

 

 

(1,173

)

 

 

(586

)

 

 

(476

)

Ending balance

 

$

29,749

 

 

$

28,981

 

 

$

27,858

 

 

$

29,877

 

 

$

31,857

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming Assets

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

17,826

 

 

$

20,487

 

 

$

20,768

 

 

$

22,070

 

 

$

24,085

 

Accruing loans past due 90 days or more

 

 

131

 

 

 

-

 

 

 

87

 

 

 

5

 

 

 

327

 

Troubled debt restructurings ("TDRs")(1)

 

 

515

 

 

 

1,141

 

 

 

1,367

 

 

 

359

 

 

 

133

 

Total nonperforming loans

 

 

18,472

 

 

 

21,628

 

 

 

22,222

 

 

 

22,434

 

 

 

24,545

 

OREO

 

 

579

 

 

 

848

 

 

 

1,015

 

 

 

1,240

 

 

 

1,324

 

Total nonperforming assets

 

$

19,051

 

 

$

22,476

 

 

$

23,237

 

 

$

23,674

 

 

$

25,869

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional Information

 

 

 

 

 

 

 

 

 

 

Total accruing TDRs(3)

 

$

8,313

 

 

$

8,782

 

 

$

8,652

 

 

$

8,185

 

 

$

8,309

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Ratios

 

 

 

 

 

 

 

 

 

 

Nonperforming loans to total loans

 

 

0.80

%

 

 

0.96

%

 

 

1.03

%

 

 

1.04

%

 

 

1.14

%

Nonperforming assets to total assets

 

 

0.58

%

 

 

0.69

%

 

 

0.73

%

 

 

0.75

%

 

 

0.83

%

Allowance for credit/loan losses to nonperforming loans

 

 

161.05

%

 

 

134.00

%

 

 

125.36

%

 

 

133.18

%

 

 

129.79

%

Allowance for credit/loan losses to total loans

 

 

1.29

%

 

 

1.29

%

 

 

1.29

%

 

 

1.39

%

 

 

1.48

%

Annualized net (recoveries) charge-offs to average loans

 

 

-0.05

%

 

 

0.15

%

 

 

0.22

%

 

 

0.11

%

 

 

0.09

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Accruing TDRs restructured within the past six months or nonperforming

(2) Accruing total TDRs

 

FOR MORE INFORMATION, CONTACT:
David D. Brown
(276) 326-9000