BLUEFIELD, Va., Jan. 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 year and quarter ended December 31, 2021. Annual net income for 2021 was a record $51.17 million, or $2.94 per diluted common share. The Company reported net income of $10.56 million, or $0.62 per diluted common share, for the quarter ended December 31, 2021.
The Company also declared a quarterly cash dividend to common shareholders of twenty-seven cents ($0.27) per common share, which is an increase of 8.00% over the same quarter last year. The quarterly dividend is payable to common shareholders of record on February 11, 2022, and is expected to be paid on or about February 25, 2022. 2022 is the 37th consecutive year of regular dividends to common shareholders.
Fourth Quarter 2021 and Current Highlights
Income Statement
- Annual net income for 2021 of $51.17 million, or $2.94 per diluted common share, was an increase of $15.24 million over 2020 and represents a 45.54% increase in diluted earnings per share compared to 2020. A reversal of $8.47 million in the allowance for credit losses in 2021 accounts for a large portion of the increase in net income. The decreases in credit loss provisioning are primarily due to significantly improved economic forecasts and GDP growth in the current year, as well as strong credit quality metrics, versus prior year provisioning driven by the pandemic. The increase was offset by a decrease in net interest income of $6.10 million, or 5.62%, driven by the current historically low interest rate environment, as well as a $3.33 million decrease in accretion on acquired loans.
- Net income for the fourth quarter of 2021 decreased $995 thousand to $10.56 million, or $0.62 per diluted common share, compared to the same quarter of 2020. The decrease was primarily driven by a decrease in net interest income of $2.49 million, or 8.97%, due to the current historically low interest rate environment, as well as a $1.67 million decrease in accretion on acquired loans. The decrease in net interest income was offset by the reversal of $846 thousand in allowance for credit losses for the fourth quarter.
- 2021 year-to-date return on average common equity increased to 11.96% compared to 8.54% in 2020. Annualized fourth quarter-to-date return on average common equity decreased to 9.77% compared to 10.82% over the same quarter of 2020.
- 2021 year-to-date return on average assets increased to 1.63% compared to 1.24% for 2020. Annualized quarter-to-date return on average assets decreased to 1.32% compared to 1.54% over the same quarter of 2020.
- Year-to-date non-interest income increased 14.98% to $34.30 million, over last year. Non-interest income for the fourth quarter of 2021 increased $1.48 million, or 19.16%, compared to the same quarter of the prior year. Both increases are largely attributable to increases in other service charges due to the more vibrant state of local economies with increased customer activity compared with last year.
Balance Sheet and Asset Quality
- Year-to-date, the Company has repurchased 949,386 common shares, or 5.36% of outstanding, for $28.88 million.
- During the fourth quarter, the Company repurchased 222,700 common shares for $7.45 million.
- Net charge-offs for the fourth quarter of 2021 were $1.17 million, or 0.22% of annualized average loans, compared to net charge-offs of $1.73 million, or 0.26% of annualized average loans, for the same period in 2020. Non-performing loans to total loans remained a very low 1.03%.
- The allowance for credit losses to total loans remains very strong at 1.29% of total loans.
- The SBA had forgiven $56.86 million, or 93.20%, of the Company’s first round Paycheck Protection Program (“PPP”) loan balances through December 31, 2021. Current PPP loan balances at December 31, 2021, which include second round originations, were $20.64 million.
- Book value per share at December 31, 2021, was $25.34, an increase of $1.26 from year-end 2020.
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 December 31, 2021. First Community Bank offers wealth management and investment advice through its Trust Division and First Community Wealth Management, which collectively managed and administered $1.32 billion in combined assets as of December 31, 2021. The Company reported consolidated assets of $3.19 billion as of December 31, 2021. 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 | Twelve Months Ended | ||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||||||
| (Amounts in thousands, except share and per share data) | 2021 | 2021 | 2021 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| Interest income | |||||||||||||||||||||||||||
| Interest and fees on loans | $ | 25,236 | $ | 25,119 | $ | 25,937 | $ | 26,540 | $ | 28,101 | $ | 102,832 | $ | 110,447 | |||||||||||||
| Interest on securities | 362 | 445 | 435 | 495 | 549 | 1,737 | 2,789 | ||||||||||||||||||||
| Interest on deposits in banks | 234 | 225 | 166 | 116 | 96 | 741 | 800 | ||||||||||||||||||||
| Total interest income | 25,832 | 25,789 | 26,538 | 27,151 | 28,746 | 105,310 | 114,036 | ||||||||||||||||||||
| Interest expense | |||||||||||||||||||||||||||
| Interest on deposits | 600 | 642 | 724 | 869 | 1,029 | 2,835 | 5,460 | ||||||||||||||||||||
| Interest on borrowings | - | 1 | - | - | - | 1 | 4 | ||||||||||||||||||||
| Total interest expense | 600 | 643 | 724 | 869 | 1,029 | 2,836 | 5,464 | ||||||||||||||||||||
| Net interest income | 25,232 | 25,146 | 25,814 | 26,282 | 27,717 | 102,474 | 108,572 | ||||||||||||||||||||
| (Recovery of) provision for credit losses | (846 | ) | (1,394 | ) | (2,230 | ) | (4,001 | ) | 634 | (8,471 | ) | 12,668 | |||||||||||||||
| Net interest income after provision | 26,078 | 26,540 | 28,044 | 30,283 | 27,083 | 110,945 | 95,904 | ||||||||||||||||||||
| Noninterest income | 9,215 | 8,720 | 8,797 | 7,569 | 7,733 | 34,301 | 29,833 | ||||||||||||||||||||
| Noninterest expense | 21,701 | 18,836 | 19,361 | 18,820 | 19,877 | 78,718 | 79,625 | ||||||||||||||||||||
| Income before income taxes | 13,592 | 16,424 | 17,480 | 19,032 | 14,939 | 66,528 | 46,112 | ||||||||||||||||||||
| Income tax expense | 3,037 | 3,816 | 4,077 | 4,430 | 3,389 | 15,360 | 10,186 | ||||||||||||||||||||
| Net income | $ | 10,555 | $ | 12,608 | $ | 13,403 | $ | 14,602 | $ | 11,550 | $ | 51,168 | $ | 35,926 | |||||||||||||
| Earnings per common share | |||||||||||||||||||||||||||
| Basic | $ | 0.62 | $ | 0.73 | $ | 0.77 | $ | 0.83 | $ | 0.65 | $ | 2.95 | $ | 2.02 | |||||||||||||
| Diluted | 0.62 | 0.73 | 0.76 | 0.82 | 0.65 | 2.94 | 2.02 | ||||||||||||||||||||
| Cash dividends per common share | |||||||||||||||||||||||||||
| Regular | 0.27 | 0.27 | 0.25 | 0.25 | 0.25 | 1.04 | 1.00 | ||||||||||||||||||||
| Weighted average shares outstanding | |||||||||||||||||||||||||||
| Basic | 16,974,005 | 17,221,244 | 17,486,182 | 17,669,937 | 17,717,356 | 17,335,615 | 17,781,748 | ||||||||||||||||||||
| Diluted | 17,038,980 | 17,279,576 | 17,536,144 | 17,729,185 | 17,751,805 | 17,402,936 | 17,815,380 | ||||||||||||||||||||
| Performance ratios | |||||||||||||||||||||||||||
| Return on average assets | 1.32 | % | 1.59 | % | 1.70 | % | 1.94 | % | 1.54 | % | 1.63 | % | 1.24 | % | |||||||||||||
| Return on average common equity | 9.77 | % | 11.65 | % | 12.55 | % | 13.94 | % | 10.82 | % | 11.96 | % | 8.54 | % | |||||||||||||
| Return on average tangible common equity(1) | 14.28 | % | 17.04 | % | 18.40 | % | 20.54 | % | 15.96 | % | 17.53 | % | 12.68 | % | |||||||||||||
| (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 | Twelve Months Ended | ||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||||||
| (Amounts in thousands) | 2021 | 2021 | 2021 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||||
| Wealth management | $ | 940 | $ | 974 | $ | 1,058 | $ | 881 | $ | 810 | $ | 3,853 | $ | 3,417 | |||||||||||||
| Service charges on deposits | 3,718 | 3,599 | 3,098 | 3,031 | 3,478 | 13,446 | 13,019 | ||||||||||||||||||||
| Other service charges and fees | 3,091 | 3,143 | 3,166 | 3,022 | 2,737 | 12,422 | 10,333 | ||||||||||||||||||||
| Net gain on sale of securities | - | - | - | - | - | - | 385 | ||||||||||||||||||||
| Net FDIC indemnification asset amortization | - | - | (946 | ) | (280 | ) | (338 | ) | (1,226 | ) | (1,690 | ) | |||||||||||||||
| Other operating income | 1,466 | 1,004 | 2,421 | 915 | 1,046 | 5,806 | 4,369 | ||||||||||||||||||||
| Total noninterest income | $ | 9,215 | $ | 8,720 | $ | 8,797 | $ | 7,569 | $ | 7,733 | $ | 34,301 | $ | 29,833 | |||||||||||||
| Noninterest expense | |||||||||||||||||||||||||||
| Salaries and employee benefits | $ | 12,493 | $ | 10,646 | $ | 10,216 | $ | 10,884 | $ | 11,119 | $ | 44,239 | $ | 44,005 | |||||||||||||
| Occupancy expense | 1,368 | 1,155 | 1,115 | 1,275 | 1,225 | 4,913 | 5,043 | ||||||||||||||||||||
| Furniture and equipment expense | 1,418 | 1,385 | 1,457 | 1,367 | 1,446 | 5,627 | 5,558 | ||||||||||||||||||||
| Service fees | 1,946 | 1,530 | 1,513 | 1,335 | 1,232 | 6,324 | 5,665 | ||||||||||||||||||||
| Advertising and public relations | 589 | 536 | 616 | 335 | 534 | 2,076 | 1,951 | ||||||||||||||||||||
| Professional fees | 455 | 313 | 290 | 466 | 276 | 1,524 | 1,224 | ||||||||||||||||||||
| Amortization of intangibles | 364 | 365 | 360 | 357 | 364 | 1,446 | 1,450 | ||||||||||||||||||||
| FDIC premiums and assessments | 213 | 216 | 204 | 199 | 202 | 832 | 426 | ||||||||||||||||||||
| Merger, acquisition, and divestiture expense | - | - | - | - | - | - | 1,893 | ||||||||||||||||||||
| Other operating expense | 2,855 | 2,690 | 3,590 | 2,602 | 3,479 | 11,737 | 12,410 | ||||||||||||||||||||
| Total noninterest expense | $ | 21,701 | $ | 18,836 | $ | 19,361 | $ | 18,820 | $ | 19,877 | $ | 78,718 | $ | 79,625 | |||||||||||||
| RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EARNINGS (Unaudited) | |||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||||||
| 2021 | 2021 | 2021 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||
| (Amounts in thousands, except per share data) | |||||||||||||||||||||||||||
| Net income | $ | 10,555 | $ | 12,608 | $ | 13,403 | $ | 14,602 | $ | 11,550 | $ | 51,168 | $ | 35,926 | |||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||||||
| Net (gain) loss on sale of securities | - | - | - | - | - | - | (385 | ) | |||||||||||||||||||
| Merger, acquisition, and divestiture expense | - | - | - | - | - | - | 1,893 | ||||||||||||||||||||
| Total adjustments | - | - | - | - | - | - | 1,508 | ||||||||||||||||||||
| Tax effect | - | - | - | - | - | - | 354 | ||||||||||||||||||||
| Adjusted earnings, non-GAAP | $ | 10,555 | $ | 12,608 | $ | 13,403 | $ | 14,602 | $ | 11,550 | $ | 51,168 | $ | 37,080 | |||||||||||||
| Adjusted diluted earnings per common share, non-GAAP | $ | 0.62 | $ | 0.73 | $ | 0.76 | $ | 0.82 | $ | 0.65 | $ | 2.94 | $ | 2.08 | |||||||||||||
| Performance ratios, non-GAAP | |||||||||||||||||||||||||||
| Adjusted return on average assets | 1.32 | % | 1.59 | % | 1.70 | % | 1.94 | % | 1.54 | % | 1.63 | % | 1.28 | % | |||||||||||||
| Adjusted return on average common equity | 9.77 | % | 11.65 | % | 12.55 | % | 13.94 | % | 10.82 | % | 11.96 | % | 8.81 | % | |||||||||||||
| Adjusted return on average tangible common equity(1) | 14.28 | % | 17.04 | % | 18.40 | % | 20.54 | % | 15.96 | % | 17.53 | % | 13.08 | % | |||||||||||||
| (1) 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 December 31, | |||||||||||||||||
| 2021 | 2020 | ||||||||||||||||
| 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) | $ | 2,163,613 | $ | 25,274 | 4.63 | % | $ | 2,188,069 | $ | 28,143 | 5.12 | % | |||||
| Securities available for sale | 76,556 | 418 | 2.17 | % | 87,592 | 640 | 2.91 | % | |||||||||
| Interest-bearing deposits | 613,377 | 237 | 0.15 | % | 375,088 | 99 | 0.11 | % | |||||||||
| Total earning assets | 2,853,546 | 25,929 | 3.60 | % | 2,650,749 | 28,882 | 4.33 | % | |||||||||
| Other assets | 328,866 | 337,906 | |||||||||||||||
| Total assets | $ | 3,182,412 | $ | 2,988,655 | |||||||||||||
| Liabilities and stockholders' equity | |||||||||||||||||
| Interest-bearing deposits | |||||||||||||||||
| Demand deposits | $ | 668,335 | $ | 28 | 0.02 | % | $ | 594,222 | $ | 50 | 0.03 | % | |||||
| Savings deposits | 843,501 | 64 | 0.03 | % | 739,312 | 112 | 0.06 | % | |||||||||
| Time deposits | 362,869 | 509 | 0.56 | % | 428,849 | 867 | 0.80 | % | |||||||||
| Total interest-bearing deposits | 1,874,705 | 601 | 0.13 | % | 1,762,383 | 1,029 | 0.23 | % | |||||||||
| Borrowings | |||||||||||||||||
| Retail repurchase agreements | 1,236 | - | N/M | 925 | 1 | 0.14 | % | ||||||||||
| Total borrowings | 1,236 | - | N/M | 925 | 1 | 0.14 | % | ||||||||||
| Total interest-bearing liabilities | 1,875,941 | 601 | 0.13 | % | 1,763,308 | 1,030 | 0.23 | % | |||||||||
| Noninterest-bearing demand deposits | 838,920 | 763,412 | |||||||||||||||
| Other liabilities | 38,986 | 37,305 | |||||||||||||||
| Total liabilities | 2,753,847 | 2,564,025 | |||||||||||||||
| Stockholders' equity | 428,565 | 424,630 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 3,182,412 | $ | 2,988,655 | |||||||||||||
| Net interest income, FTE(1) | $ | 25,328 | $ | 27,852 | |||||||||||||
| Net interest rate spread | 3.47 | % | 4.10 | % | |||||||||||||
| Net interest margin, FTE(1) | 3.52 | % | 4.18 | % | |||||||||||||
| (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 $1.10 million and $2.77 million for the three months ended December 31, 2021 and 2020, respectively. | |||||||||||||||||
| AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited) | |||||||||||||||||
| Twelve Months Ended December 31, | |||||||||||||||||
| 2021 | 2020 | ||||||||||||||||
| 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) | $ | 2,153,099 | $ | 102,996 | 4.78 | % | $ | 2,142,637 | $ | 110,619 | 5.16 | % | |||||
| Securities available for sale | 81,049 | 2,008 | 2.48 | % | 105,005 | 3,259 | 3.10 | % | |||||||||
| Interest-bearing deposits | 570,040 | 745 | 0.13 | % | 296,495 | 805 | 0.27 | % | |||||||||
| Total earning assets | 2,804,188 | 105,749 | 3.77 | % | 2,544,137 | 114,683 | 4.51 | % | |||||||||
| Other assets | 330,640 | 348,150 | |||||||||||||||
| Total assets | $ | 3,134,828 | $ | 2,892,287 | |||||||||||||
| Liabilities and stockholders' equity | |||||||||||||||||
| Interest-bearing deposits | |||||||||||||||||
| Demand deposits | $ | 646,999 | $ | 127 | 0.02 | % | $ | 556,279 | $ | 311 | 0.06 | % | |||||
| Savings deposits | 816,845 | 281 | 0.03 | % | 711,831 | 902 | 0.13 | % | |||||||||
| Time deposits | 387,249 | 2,427 | 0.63 | % | 456,755 | 4,247 | 0.93 | % | |||||||||
| Total interest-bearing deposits | 1,851,093 | 2,835 | 0.15 | % | 1,724,865 | 5,460 | 0.32 | % | |||||||||
| Borrowings | |||||||||||||||||
| Retail repurchase agreements | 1,194 | 1 | 0.07 | % | 1,145 | 3 | 0.28 | % | |||||||||
| FHLB advances and other borrowings | - | - | - | 36 | 1 | 2.23 | % | ||||||||||
| Total borrowings | 1,194 | 1 | 0.07 | % | 1,181 | 4 | 0.34 | % | |||||||||
| Total interest-bearing liabilities | 1,852,287 | 2,836 | 0.15 | % | 1,726,046 | 5,464 | 0.32 | % | |||||||||
| Noninterest-bearing demand deposits | 816,638 | 707,623 | |||||||||||||||
| Other liabilities | 38,151 | 37,826 | |||||||||||||||
| Total liabilities | 2,707,076 | 2,471,495 | |||||||||||||||
| Stockholders' equity | 427,752 | 420,792 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 3,134,828 | $ | 2,892,287 | |||||||||||||
| Net interest income, FTE(1) | $ | 102,913 | $ | 109,219 | |||||||||||||
| Net interest rate spread | 3.62 | % | 4.19 | % | |||||||||||||
| Net interest margin, FTE(1) | 3.67 | % | 4.29 | % | |||||||||||||
| (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 $4.66 million and $7.99 million for the twelve months ended December 31, 2021 and 2020, respectively. | |||||||||||||||||
| CONDENSED CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited) | |||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
| (Amounts in thousands, except per share data) | 2021 | 2021 | 2021 | 2021 | 2020 | ||||||||||||||
| Assets | |||||||||||||||||||
| Cash and cash equivalents | $ | 677,439 | $ | 635,007 | $ | 618,738 | $ | 628,745 | $ | 456,561 | |||||||||
| Debt securities available for sale | 76,292 | 77,440 | 79,842 | 87,643 | 83,358 | ||||||||||||||
| Loans held for investment, net of unearned income (includes covered loans of $0, $9,041, $9,680, $10,744, and $11,257, for the stated periods, respectively) (1) | 2,165,569 | 2,152,103 | 2,153,731 | 2,146,640 | 2,186,632 | ||||||||||||||
| Allowance for credit losses (2) | (27,858 | ) | (29,877 | ) | (31,857 | ) | (34,563 | ) | (26,182 | ) | |||||||||
| Loans held for investment, net | 2,137,711 | 2,122,226 | 2,121,874 | 2,112,077 | 2,160,450 | ||||||||||||||
| FDIC indemnification asset | - | - | - | 946 | 1,223 | ||||||||||||||
| Premises and equipment, net | 52,284 | 52,842 | 53,560 | 57,371 | 57,700 | ||||||||||||||
| Other real estate owned | 1,015 | 1,240 | 1,324 | 1,740 | 2,083 | ||||||||||||||
| Interest receivable | 7,900 | 8,146 | 8,480 | 8,724 | 9,052 | ||||||||||||||
| Goodwill | 129,565 | 129,565 | 129,565 | 129,565 | 129,565 | ||||||||||||||
| Other intangible assets | 5,622 | 5,987 | 6,352 | 6,712 | 7,069 | ||||||||||||||
| Other assets | 106,691 | 107,258 | 109,548 | 106,543 | 104,075 | ||||||||||||||
| Total assets | $ | 3,194,519 | $ | 3,139,711 | $ | 3,129,283 | $ | 3,140,066 | $ | 3,011,136 | |||||||||
| Liabilities | |||||||||||||||||||
| Deposits | |||||||||||||||||||
| Noninterest-bearing | $ | 842,783 | $ | 820,147 | $ | 819,138 | $ | 824,576 | $ | 772,795 | |||||||||
| Interest-bearing | 1,886,608 | 1,853,699 | 1,846,556 | 1,848,524 | 1,773,452 | ||||||||||||||
| Total deposits | 2,729,391 | 2,673,846 | 2,665,694 | 2,673,100 | 2,546,247 | ||||||||||||||
| Securities sold under agreements to repurchase | 1,536 | 1,106 | 994 | 1,519 | 964 | ||||||||||||||
| Interest, taxes, and other liabilities | 35,817 | 37,395 | 35,061 | 39,448 | 37,195 | ||||||||||||||
| Total liabilities | 2,766,744 | 2,712,347 | 2,701,749 | 2,714,067 | 2,584,406 | ||||||||||||||
| Stockholders' equity | |||||||||||||||||||
| Common stock | 16,878 | 17,071 | 17,335 | 17,592 | 17,723 | ||||||||||||||
| Additional paid-in capital | 147,619 | 154,086 | 161,853 | 169,173 | 173,345 | ||||||||||||||
| Retained earnings | 264,824 | 258,860 | 250,911 | 241,889 | 237,585 | ||||||||||||||
| Accumulated other comprehensive loss | (1,546 | ) | (2,653 | ) | (2,565 | ) | (2,655 | ) | (1,923 | ) | |||||||||
| Total stockholders' equity | 427,775 | 427,364 | 427,534 | 425,999 | 426,730 | ||||||||||||||
| Total liabilities and stockholders' equity | $ | 3,194,519 | $ | 3,139,711 | $ | 3,129,283 | $ | 3,140,066 | $ | 3,011,136 | |||||||||
| Shares outstanding at period-end | 16,878,220 | 17,071,052 | 17,334,547 | 17,592,009 | 17,722,507 | ||||||||||||||
| Book value per common share | $ | 25.34 | $ | 25.03 | $ | 24.66 | $ | 24.22 | $ | 24.08 | |||||||||
| Tangible book value per common share(3) | 17.34 | 17.09 | 16.82 | 16.47 | 16.37 | ||||||||||||||
| (1) No covered loans for December 2021 and September 2021. FDIC Loss Share agreement terminated in September 2021. | |||||||||||||||||||
| (2) Effective January 1, 2021, the Company adopted the current expected credit loss methodology ("CECL"); prior to January 1, 2021, the Company utilized the incurred credit loss methodology. | |||||||||||||||||||
| (3) A non-GAAP financial measure defined as stockholders' equity less goodwill and other intangible assets, divided by shares outstanding | |||||||||||||||||||
| SELECTED CREDIT QUALITY INFORMATION (Unaudited) | |||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
| (Amounts in thousands) | 2021 | 2021 | 2021 | 2021 | 2020 | ||||||||||||||
| Allowance for Credit Losses (1) | |||||||||||||||||||
| Beginning balance | $ | 29,877 | $ | 31,857 | $ | 34,563 | $ | 26,182 | $ | 27,277 | |||||||||
| Cumulative effect of adoption of ASU 2016-13 | - | - | - | 13,107 | - | ||||||||||||||
| (Recovery of) provision for credit/loan losses charged to operations | (846 | ) | (1,394 | ) | (2,230 | ) | (4,001 | ) | 634 | ||||||||||
| Charge-offs | (1,887 | ) | (1,255 | ) | (1,902 | ) | (1,730 | ) | (2,194 | ) | |||||||||
| Recoveries | 714 | 669 | 1,426 | 1,005 | 465 | ||||||||||||||
| Net charge-offs | (1,173 | ) | (586 | ) | (476 | ) | (725 | ) | (1,729 | ) | |||||||||
| Ending balance | $ | 27,858 | $ | 29,877 | $ | 31,857 | $ | 34,563 | $ | 26,182 | |||||||||
| Nonperforming Assets | |||||||||||||||||||
| Nonaccrual loans | $ | 20,768 | $ | 22,070 | $ | 24,085 | $ | 26,106 | $ | 22,003 | |||||||||
| Accruing loans past due 90 days or more | 87 | 5 | 327 | 171 | 295 | ||||||||||||||
| Troubled debt restructurings ("TDRs")(2) | 1,367 | 359 | 133 | 308 | 187 | ||||||||||||||
| Total nonperforming loans | 22,222 | 22,434 | 24,545 | 26,585 | 22,485 | ||||||||||||||
| OREO | 1,015 | 1,240 | 1,324 | 1,740 | 2,083 | ||||||||||||||
| Total nonperforming assets | $ | 23,237 | $ | 23,674 | $ | 25,869 | $ | 28,325 | $ | 24,568 | |||||||||
| Additional Information | |||||||||||||||||||
| Total Accruing TDRs(3) | $ | 8,652 | $ | 8,185 | $ | 8,309 | $ | 9,027 | $ | 10,248 | |||||||||
| Asset Quality Ratios | |||||||||||||||||||
| Nonperforming loans to total loans | 1.03 | % | 1.04 | % | 1.14 | % | 1.24 | % | 1.03 | % | |||||||||
| Nonperforming assets to total assets | 0.73 | % | 0.75 | % | 0.83 | % | 0.90 | % | 0.82 | % | |||||||||
| Allowance for credit/loan losses to nonperforming loans | 125.36 | % | 133.18 | % | 129.79 | % | 130.01 | % | 116.44 | % | |||||||||
| Allowance for credit/loan losses to total loans | 1.29 | % | 1.39 | % | 1.48 | % | 1.61 | % | 1.20 | % | |||||||||
| Annualized net charge-offs to average loans | 0.22 | % | 0.11 | % | 0.09 | % | 0.14 | % | 0.26 | % | |||||||||
| (1) Effective January 1, 2021, the Company adopted the current expected credit loss methodology ("CECL"); prior to January 1, 2021, the Company utilized the incurred credit loss methodology. | |||||||||||||||||||
| (2) Accruing TDRs restructured within the past six months or nonperforming | |||||||||||||||||||
| (3) Accruing total TDRs | |||||||||||||||||||
FOR MORE INFORMATION, CONTACT:
David D. Brown
(276) 326-9000
