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RBB Bancorp Reports Second Quarter Earnings for 2019

Conference Call and Webcast Scheduled for Tuesday, July 23, 2019 at 11:00 a.m. Pacific Time/2:00 p.m. Eastern Time

- Net income was $10.1 million, or $0.50 diluted earnings per share

- Total deposits increased by $51.0 million, or 9.4% annualized growth, from the end of the prior quarter

- Sold approximately $175.0 million of mortgage loans for a net gain on sale of $2.5 million

LOS ANGELES, July 22, 2019 /PRNewswire/ -- RBB Bancorp (RBB) and its subsidiaries, Royal Business Bank ("the Bank") and RBB Asset Management Company ("RAM"), collectively referred to herein as "the Company", announced financial results for the quarter ended June 30, 2019.

The Company reported net income of $10.1 million, or $0.50 diluted earnings per share, for the three months ended June 30, 2019, compared to net income of $10.4 million, or $0.51 diluted earnings per share, and $9.4 million, or 0.54 diluted earnings per share, for the three months ended March 31, 2019 and June 30, 2018, respectively.

"We are pleased with our operating performance for the second quarter," said Mr. Alan Thian, Chairman, President and CEO. "We made significant progress on our balance sheet initiatives, selling $175.0 million in residential mortgage loans during the quarter and reducing our reliance on wholesale funding by $235.0 million. Our focus on increasing core deposits helped drive our deposit growth and we continued to experience low credit costs and well-managed expenses.  These factors all contributed to another solid quarter of net income.

"Our integration of First American International Corp. is nearly complete. We have optimized its operational footprint, with the closing of two non-banking offices and one branch and the opening of one new branch. We have also renegotiated and entered into new contracts with our core system vendor.  We are making good progress on introducing our business deposit and commercial lending products to the First American branch network and anticipate future growth from that franchise.  Our last project is to implement a common residential mortgage origination platform for both regions.

"With our balance sheet repositioning nearly complete and given our loan pipeline, we are looking forward to resuming growth at a more normalized rate. In addition to organic growth opportunities, we plan to continue to expand our franchise through a combination of acquisitions and de novo branch openings," concluded Mr. Thian.

Key Performance Ratios

Net income of $10.1 million for the second quarter of 2019 produced an annualized return on average assets of 1.43%, an annualized return on average tangible common equity of 12.51%, and an annualized return on average equity of 10.42%.  This compares to an annualized return on average assets of 1.44%, an annualized return on average tangible common equity of 13.26%, and an annualized return on average equity of 10.98% for the first quarter of 2019.  The efficiency ratio for the second quarter of 2019 was 50.0%, compared to 50.9% for the prior quarter. Normalizing for the 1,035,000 shares issued for options in 2018 and the 3,011,787 shares issued as a result of the First American International Corp. acquisition, diluted earnings per share would have been $0.52 for the quarter ended June 30, 2019 and $0.48 for the quarter ended June 30, 2018.

Net Interest Income and Net Interest Margin

Net interest income, before provision for loan losses, was $24.3 million for the second quarter of 2019, compared to $25.9 million for the first quarter of 2019.  The $1.6 million decrease was primarily attributable to a $94.7 million decrease in average loans held for sale and a $6.3 million decrease in average total loans held for investment, partially offset by a $74.3 million decrease in average interest-bearing liabilities.  Net interest income was also impacted by a 20 basis point decrease in the net interest margin.  Accretion of purchase discounts contributed $753,000 to net interest income in the second quarter of 2019, compared to $1.1 million in the first quarter of 2019.

Compared to the second quarter of 2018, net interest income, before provision for loan losses, increased from $17.8 million. The increase was primarily attributable to a $1.0 billion increase in average earning assets, partially offset by a 73 basis point decrease in the net interest margin.

Net interest margin was 3.64% for the second quarter of 2019, a decrease from 3.84% in the first quarter of 2019. The decrease was primarily attributable to a 12 basis point increase in the cost of interest bearing liabilities, and a 14 basis point decrease in the yield on average earning assets resulting from lower average loan yields.  Loan discount accretion contributed 11 basis points to the net interest margin in the second quarter of 2019, compared to 16 basis points in the first quarter of 2019.

Noninterest Income

Noninterest income was $5.5 million for the second quarter of 2019, an increase of $1.3 million from $4.2 million in the first quarter of 2019.  The increase was driven by an increase in gain on loan sales of $922,000, higher service charges and fees of $402,000, higher net loan servicing fees of $59,000, and an increase in recoveries on loans acquired in business combinations of $49,000. These were partially offset by a decrease in unrealized gain on equity investments of $147,000.

The Company sold $175.0 million in mortgage loans for a net gain of $2.5 million during the second quarter of 2019, compared to $129.8 million in mortgage loan sales for a net gain of $1.9 million during the first quarter. The Company originated $28.3 million in mortgage loans for sale for the second quarter of 2019, compared with $49.0 million during the prior quarter.

The Company sold $10.0 million in SBA loans for a net gain of $616,000 during the second quarter of 2019, compared to $3.7 million in SBA loans sold for a net gain of $125,000 during the first quarter of 2019. 

The Company sold $1.6 million in commercial real estate loans for a net gain of $24,000 in the second quarter of 2019.  In the prior quarter, $8.8 million loans were sold for a gain of $154,000

Compared to the second quarter of 2018, noninterest income increased by $2.7 million from $2.8 million. The increase was primarily attributable to an increase of $1.0 million in gain on sale of loans and a $776,000 increase in service charges and fees, and an increase of $841,000 in net loan servicing fees, mostly attributable to the First American International Bank merger.

Noninterest Expense

Noninterest expense for the second quarter of 2019 was $14.9 million, compared to $15.3 million for the first quarter of 2019.  The $426,000 decrease was primarily attributable to a $949,000 decrease in salaries and employee benefits expenses and a $235,000 decrease in merger and other expenses, partially offset by a $422,000 increase in occupancy and equipment expenses, of which $225,000 was for prior period New York City property taxes, a $231,000 increase in legal and professional expenses and a $210,000 increase in data processing expenses, of which $82,000 was for duplicative services which were not yet converted.

Compared to the second quarter of 2018, noninterest expense increased from $8.2 million to $14.9 million. The $6.7 million increase was primarily due to an increase in salaries and employee benefits of $3.5 million, occupancy and equipment expenses of $1.8 million, data processing expenses of $732,000, and amortization of intangibles of $308,000.  The increase in salary expense is attributable to additional staff for expansion and the First American acquisition.  The increase in occupancy expense is mainly due to the First American International Corp. acquisition, including the new branch in Flushing, NY and our new Irvine location in Orange County, CA.

Income Taxes

The effective tax rate was 30.3%, including the tax impact for stock options exercised in the amount of $52,000 for the second quarter of 2019, 27.1%, including the impact of a deduction for stock options exercised in the amount of $92,000, for the first quarter, and 19.5% for the second quarter of 2018, which included the impact of a deduction for stock options exercised in the amount of $1.2 million

Loan Portfolio

Loans held for investment, net of deferred fees and discounts, totaled $2.1 billion as of June 30, 2019, a decrease of $28.0 million from March 31, 2019, and an increase of $808.4 million from June 30, 2018.  The slight decline in loans held for investment from the end of the first quarter was primarily due to loans sold that were previously classified as loans held for investment of $107.7 million, partially offset by an increase in loan production.

Mortgage loans held for sale were $249.6 million as of June 30, 2019, a decrease of $125.8 million from $375.4 million at March 31, 2019. 

Deposits

Deposits were $2.2 billion at June 30, 2019, an increase of $51.0 million from March 31, 2019, and an increase of $810.9 million from June 30, 2018. The increase in total deposits from the end of the prior quarter was primarily attributable to a $91.3 million increase in retail time deposits, partially offset by a decrease of $47.9 million in brokered time deposits.  We continue to experience customers moving funds to time deposits from savings, NOW and money market accounts, given the current expectations for lower interest rates. Non-maturity deposits decreased by $1.8 million in the quarter. As of June 30, 2019, deposits included $135.0 million in brokered CDs.

In the second quarter, noninterest-bearing deposits increased $16.7 million to $435.6 million as of June 30, 2019. The increase was due to a partial return of deposits that were withdrawn in the first quarter due to customer concern over uncertain international trade issues. Compared to June 30, 2018, noninterest-bearing deposits increased $129.3 million from $306.4 million

Asset Quality

Nonperforming assets totaled $8.6 million, or 0.31% of total assets at June 30, 2019, compared to $4.6 million, or 0.16%, of total assets at March 31, 2019. The increase in nonperforming assets was primarily due to the addition of a $2.9 million SBA loan. Nonperforming assets consist of Other Real Estate Owned, loans modified under troubled debt restructurings (TDR), non-accrual loans, and loans past due 90 days or more and still accruing interest. 

Loans held-for-investment 30 to 89 days past due decreased to $3.4 million at June 30, 2019, from $5.2 million at March 31, 2019. 

In the second quarter of 2019, there was one charge-off of $32,000 attributed to a commercial and industrial loan.  There were $109,000 in net recoveries in the first quarter.

The Company recorded a provision for loan losses of $357,000 for the second quarter of 2019, which was primarily attributable to a change in the loan mix during the quarter. 

The allowance for loan losses totaled $18.6 million, or 0.89% of total loans held for investment at June 30, 2019, compared with $18.2 million, or 0.86%, of total loans at March 31, 2019. 

Properties

Our headquarters office is located at 1055 Wilshire Blvd. in Los Angeles, California. In 2019, we have closed one non-banking office and one branch and opened one new branch in New York City, with one additional non-banking office vacant but still paying rent.

Corporate Overview

RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California.  The Company has total assets of $2.8 billion. Its wholly-owned subsidiary, the Bank is a full service commercial bank, which provides business banking services to the Chinese-American communities in Los Angeles County, Orange County and Ventura County in California, in Las Vegas, Nevada, and in Brooklyn, Queens, and Manhattan in New York.  Bank services include remote deposit, E-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, commercial and industrial loans, SBA 7A and 504 loans, 1-4 single family residential loans, automobile lending, trade finance, a full range of depository account products and wealth management services.  The Bank has ten branches in Los Angeles County, two branches in Ventura County, one branch in Irvine, California, one branch in Las Vegas, Nevada, and nine branches and two loan offices in Brooklyn, Queens and Manhattan in New York. The Company's administrative and lending center is located at 1055 Wilshire Blvd., Los Angeles, California 90017, and its finance and operations center is located at 7025 Orangethorpe Avenue, Buena Park, California 90621. The Company's website address is www.royalbusinessbankusa.com.

Conference Call

Management will hold a conference call at 11:00 a.m. Pacific time/2:00 p.m. Eastern time on Tuesday, July 23, 2019, to discuss the Company's second quarter 2019 financial results.

To listen to the conference call, please dial 1-833-659-7620 or 1-430-775-1348, passcode 4677186. A replay of the call will be made available at 1-855-859-2056 or 1-404-537-3406, passcode 4677186, approximately one hour after the conclusion of the call and will remain available through July 30, 2019.

The conference call will also be simultaneously webcast over the Internet; please visit our Royal Business Bank website at www.royalbusinessbankusa.com and click on the "Investors" tab to access the call from the site. This webcast will be recorded and available for replay on our website approximately two hours after the conclusion of the conference call.

Disclosure

This press release contains certain non-GAAP financial disclosures for tangible common equity and tangible assets and adjusted earnings. The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company's operational performance and to enhance investors' overall understanding of such financial performance. Please refer to the tables at the end of this release for a presentation of performance ratios in accordance with GAAP and a reconciliation of the non-GAAP financial measures to the GAAP financial measures.

Safe Harbor

Certain matters set forth herein (including the exhibits hereto) constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to the Company's current business plans and expectations and our future financial position and operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance and/or achievements to differ materially from those projected. These risks and uncertainties include, but are not limited to, local, regional, national and international economic and market conditions and events and the impact they may have on us, our customers and our assets and liabilities; our ability to attract deposits and other sources of funding or liquidity; supply and demand for real estate and periodic deterioration in real estate prices and/or values in California or other states where we lend, including both residential and commercial real estate; a prolonged slowdown or decline in real estate construction, sales or leasing activities; changes in the financial performance and/or condition of our borrowers, depositors or key vendors or counterparties; changes in our levels of delinquent loans, nonperforming assets, allowance for loan losses and charge-offs; the costs or effects of acquisitions or dispositions we may make, including our recently completed acquisition of FAIC, whether we are able to obtain any required governmental or shareholder approvals in connection with any such acquisitions or dispositions, and/or our ability to realize the contemplated financial or business benefits associated with any such acquisitions or dispositions; the effect of changes in laws, regulations and applicable judicial decisions (including laws, regulations and judicial decisions concerning financial reforms, taxes, banking capital levels, consumer, commercial or secured lending, securities and securities trading and hedging, compliance, employment, executive compensation, insurance, vendor management and information security) with which we and our subsidiaries must comply or believe we should comply; changes in estimates of future reserve requirements and minimum capital requirements based upon the periodic review thereof under relevant regulatory and accounting requirements, including changes in the Basel Committee framework establishing capital standards for credit, operations and market risk; inflation, interest rate, securities market and monetary fluctuations; changes in government interest rates or monetary policies; changes in the amount and availability of deposit insurance; cyber-security threats, including loss of system functionality or theft or loss of Company or customer data or money; political instability; acts of war or terrorism, or natural disasters, such as earthquakes, drought, or the effects of pandemic diseases; the timely development and acceptance of new banking products and services and the perceived overall value of these products and services by our customers and potential customers; the Company's relationships with and reliance upon vendors with respect to the operation of certain of the Company's key internal and external systems and applications; changes in commercial or consumer spending, borrowing and savings preferences or behaviors; technological changes and the expanding use of technology in banking (including the adoption of mobile banking and funds transfer applications); the ability to retain and increase market share, retain and grow customers and control expenses; changes in the competitive and regulatory environment among financial and bank holding companies, banks and other financial service providers; volatility in the credit and equity markets and its effect on the general economy or local or regional business conditions; fluctuations in the price of the Company's common stock or other securities; and the resulting impact on the Company's ability to raise capital or make acquisitions, the effect of changes in accounting policies and practices, as may be adopted from time-to-time by our regulatory agencies, as well as by the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard-setters; changes in our organization, management, compensation and benefit plans, and our ability to retain or expand our workforce, management team and/or our board of directors; the costs and effects of legal, compliance and regulatory actions, changes and developments, including the initiation and resolution of legal proceedings (such as securities, consumer or employee class action litigation), regulatory or other governmental inquiries or investigations, and/or the results of regulatory examinations or reviews; our ongoing relations with our various federal and state regulators, including the SEC, FDIC, FRB and California DBO; our success at managing the risks involved in the foregoing items and all other factors set forth in the Company's public reports, including its Annual Report as filed under Form 10-K for the year ended December 31, 2018, and particularly the discussion of risk factors within that document. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company's earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.

RBB BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands)




June 30



March 31



December 31,



September 30,



June 30,



2019



2019



2018



2018



2018

Assets




















Cash and due from banks


$

185,643



$

250,079



$

147,685



$

171,553



$

72,788

Federal funds sold and other cash equivalents



20,000













Total cash and cash equivalents



205,643




250,079




147,685




171,553




72,788

Interest-bearing deposits in other financial institutions



1,196




1,196




600




600




600

Investment securities available for sale



71,629




58,537




73,762




87,066




61,299

Investment securities held to maturity



8,733




9,449




9,961




9,974




9,986

Mortgage loans held for sale



249,596




375,430




434,522




378,943




281,755

Loans held for investment



2,092,438




2,120,413




2,142,015




1,381,218




1,284,082

Allowance for loan losses



(18,561)




(18,236)




(17,577)




(16,178)




(14,657)

Net loans held for investment



2,073,877




2,102,177




2,124,438




1,365,040




1,269,425

Premises and equipment, net



17,214




17,342




17,307




8,119




7,502

Federal Home Loan Bank (FHLB) stock



15,000




8,899




9,707




7,738




7,738

Net deferred tax assets



4,318




4,389




4,642




7,320




7,089

Income tax receivable



3,001







656




1,845




2,170

Other real estate owned (OREO)



2,075




2,056




1,101




293




293

Cash surrender value of life insurance



33,963




33,769




33,578




33,380




33,180

Goodwill



58,383




58,383




58,383




29,940




29,940

Servicing assets



17,587




17,288




17,370




6,248




6,134

Core deposit intangibles



6,828




7,212




7,601




1,203




1,280

Accrued interest and other assets



32,913




31,912




32,689




27,577




25,693

Total assets


$

2,801,956



$

2,978,118



$

2,974,002



$

2,136,839



$

1,816,872

Liabilities and shareholders' equity




















Deposits:




















Noninterest-bearing demand


$

435,629



$

418,953



$

438,764



$

287,274



$

306,362

Savings, NOW and money market accounts



462,448




480,959




579,247




462,737




424,261

Time deposits



1,337,257




1,284,428




1,126,030




814,953




693,783

Total deposits



2,235,334




2,184,340




2,144,041




1,564,964




1,424,406

Reserve for unfunded commitments



621




639




688




550




483

Income tax payable



1,610




3,009










FHLB advances



40,000




275,000




319,500




210,000




40,000

Long-term debt, net of debt issuance costs



103,878




103,793




103,708




49,637




49,601

Subordinated debentures



9,590




9,548




9,506




3,492




3,470

Accrued interest and other liabilities



17,103




16,986




21,938




13,198




12,710

Total liabilities



2,408,136




2,593,315




2,599,381




1,841,841




1,530,670

Shareholders' equity:




















Shareholder's equity



393,758




385,395




375,887




296,514




287,509

Non-controlling interest



72




72




72







Accumulated other comprehensive income (loss) - Net of tax



(10)




(664)




(1,338)




(1,516)




(1,307)

Total shareholders' equity



393,820




384,803




374,621




294,998




286,202

Total liabilities and stockholders' equity


$

2,801,956



$

2,978,118



$

2,974,002



$

2,136,839



$

1,816,872

 

RBB BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Dollars in thousands, except per share amounts) 




For the three months ended



June 30, 2019



March 31, 2019



June 30, 2018

Interest and dividend income:












Interest and fees on loans


$

34,240



$

35,839



$

21,132

Interest on interest-bearing deposits



515




468




209

Interest on investment securities



685




588




603

Dividend income on FHLB stock



379




198




134

Interest on federal funds sold and other



124




113




206

Total interest income



35,943




37,206




22,284

Interest expense:












Interest on savings deposits, NOW and money market accounts



1,238




1,294




998

Interest on time deposits



7,797




5,953




2,410

Interest on subordinated debentures and long term debt



1,929




1,933




920

Interest on other borrowed funds



662




2,114




129

Total interest expense



11,626




11,294




4,457

Net interest income



24,317




25,912




17,827

Provision for loan losses



357




550




700

Net interest income after provision for loan losses



23,960




25,362




17,127

Noninterest income:












Service charges, fees and other



1,222




820




446

Gain on sale of loans



3,120




2,198




2,085

Loan servicing fees, net of amortization



899




840




58

Recoveries on loans acquired in business combinations



55




6




5

Unrealized gain on equity investments






147




Increase in cash surrender value of life insurance



194




191




199

Gain on sale of fixed assets



6










5,496




4,202




2,793

Noninterest expense:












Salaries and employee benefits



8,169




9,118




4,709

Occupancy and equipment expenses



2,674




2,252




834

Data processing



1,219




1,009




487

Legal and professional



656




425




423

Office expenses



294




336




192

Marketing and business promotion



316




362




262

Insurance and regulatory assessments



284




298




213

Amortization of intangibles



385




388




77

OREO expenses



81




81




Merger expenses



15




71




183

Other expenses



806




985




811




14,899




15,325




8,191

Income before income taxes



14,557




14,239




11,729

Income tax expense



4,415




3,859




2,292

Net income


$

10,142



$

10,380



$

9,437













Net income per share












Basic


$

0.51



$

0.52



$

0.58

Diluted


$

0.50



$

0.51



$

0.54

Cash Dividends declared per common share


$

0.10



$

0.10



$

0.09

Weighted-average common shares outstanding












Basic



20,074,651




20,047,716




16,407,439

Diluted



20,445,013




20,436,741




17,322,800

 

RBB BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Dollars in thousands, except per share amounts) 




For the six months ended



June 30, 2019



June 30, 2018

Interest and dividend income:








Interest and fees on loans


$

70,079



$

40,206

Interest on interest-earning deposits



983




395

Interest on investment securities



1,273




1,163

Dividend income on FHLB stock



577




253

Interest on federal funds sold and other



237




443

 Total interest income



73,149




42,460

Interest expense:








Interest on savings deposits, NOW and money market accounts



2,532




1,700

Interest on time deposits



13,750




4,456

Interest on subordinated debentures and long term debt



3,862




1,833

Interest on other borrowed funds



2,776




200

Total interest expense



22,920




8,189

Net interest income



50,229




34,271

Provision for loan losses



907




884

Net interest income after provision for loans losses



49,322




33,387

Noninterest income:








Service charges, fees and other



2,042




912

Gain on sale of loans



5,318




3,900

Loan servicing fees, net of amortization



1,739




27

Recoveries on loans acquired in business combinations



61




11

Unrealized gain on equity investments



147




Increase in cash surrender value of life insurance



385




398

Gain on sale of fixed assets



6







9,698




5,248

Noninterest expense:








Salaries and employee benefits



17,287




9,660

Occupancy and equipment expenses



4,926




1,626

Data processing



2,228




960

Legal and professional



1,081




680

Office expenses



630




363

Marketing and business promotion



678




465

Insurance and regulatory assessments



582




422

Amortization of intangibles



773




158

OREO expenses



162




7

Merger expenses



86




223

Other expenses



1,791




1,916




30,224




16,480

Income before income taxes



28,796




22,155

Income tax expense



8,274




3,872

Net income


$

20,522



$

18,283









Net income per share








Basic


$

1.02



$

1.13

Diluted


$

1.00



$

1.06

Cash Dividends declared per common share


$

0.20



$

0.17

Weighted-average common shares outstanding








Basic



20,061,258




16,246,063

Diluted



20,440,900




17,248,125

 

RBB BANCORP AND SUBSIDIARIES


AVERAGE BALANCE SHEET AND NET INTEREST INCOME


(Unaudited)


(Dollars in thousands, except per share amounts)






For the three months ended




June 30, 2019


March 31, 2019



June 30, 2018




Average



Interest



Yield /



Average



Interest



Yield /



Average



Interest



Yield /


(tax-equivalent basis, dollars in thousands)


Balance



& Fees



Rate



Balance



& Fees



Rate



Balance



& Fees



Rate


Earning assets:



































Federal funds sold, cash equivalents & other (1)


$

120,818



$

1,018



3.38

%


$

92,692



$

779



3.41

%


$

79,065



$

549




2.78

%

Securities (2)



































Available for sale



87,347




610



2.80

%



68,708




508



3.00

%



74,836




519




2.78

%

Held to maturity



9,127




84



3.69

%



9,629




89



3.75

%



9,992




92




3.68

%

Mortgage loans held for sale



355,168




4,245



4.79

%



449,828




5,490



4.95

%



209,423




2,428




4.65

%

Loans held for investment: (3)



































Real estate



1,763,749




24,394



5.55

%



1,764,813




24,486



5.63

%



885,630




12,635




5.72

%

Commercial (4)



347,236




5,601



6.47

%



352,428




5,864



6.75

%



377,077




6,069




6.46

%

Total loans



2,110,985




29,995



5.70

%



2,117,241




30,350



5.81

%



1,262,707




18,704




5.94

%

Total earning assets



2,683,445



$

35,952



5.37

%



2,738,098



$

37,216



5.51

%



1,636,023



$

22,292




5.47

%

Noninterest-earning assets



166,719











176,813











100,442










Total assets


$

2,850,164










$

2,914,911










$

1,736,465













































Interest-bearing liabilities



































NOW and money market deposits


$

387,363



$

1,188



1.23

%


$

413,952



$

1,241



1.22

%


$

387,116



$

968




1.00

%

Savings deposits



97,584




50



0.21

%



100,623




53



0.21

%



29,499




30




0.40

%

Time deposits



1,338,631




7,797



2.34

%



1,139,214




5,953



2.12

%



666,493




2,410




1.45

%

Total interest-bearing deposits



1,823,578




9,035



1.99

%



1,653,789




7,247



1.78

%



1,083,108




3,408




1.26

%

FHLB short-term advances



95,220




662



2.79

%



339,406




2,114



2.53

%



34,011




129




1.52

%

Long-term debt



103,826




1,748



6.75

%



103,742




1,747



6.83

%



49,583




849




6.87

%

Subordinated debentures



9,564




181



7.59

%



9,523




186



7.92

%



3,459




71




8.26

%

Total interest-bearing liabilities



2,032,188




11,626



2.29

%



2,106,460




11,294



2.17

%



1,170,161




4,457




1.53

%

Noninterest-bearing liabilities



































Noninterest-bearing deposits



408,219











405,190











271,920










Other noninterest-bearing liabilities



19,183











19,987











12,930










Total noninterest-bearing liabilities



427,402











425,177











284,850










Shareholders' equity



390,574











383,274











281,454










Total liabilities and shareholders' equity


$

2,850,164










$

2,914,911










$

1,736,465










Net interest income / interest rate spreads






$

24,326



3.08

%






$

25,922



3.34

%






$

17,835




3.94

%

Net interest margin










3.64

%










3.84

%











4.37

%







(1)

Includes income and average balances for FHLB stock, term federal funds, interest-bearing time deposits and other miscellaneous interest-bearing assets.

(2)

Interest income and average rates for tax-exempt loans and securities are presented on a tax-equivalent basis.

(3)

Average loan balances include nonaccrual loans and loans held for sale. Interest income on loans includes - amortization of deferred loan fees, net of deferred loan costs.

(4)

Includes purchased receivables, which are short term loans made to investment grade companies and are used for cash - management purposes by the Company.

 

BANCORP AND SUBSIDIARIES

AVERAGE BALANCE SHEET AND NET INTEREST INCOME

(Unaudited)

(Dollars in thousands, except per share amounts) 





For the six months ended June 30,




2019


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