Access National Corporation (NASDAQ: ANCX), parent company for Access National Bank (Bank), reported third quarter net income of $2.8 million, or $0.27 per share. This represents the Corporation’s 53rd consecutive quarterly profit over its 55 quarter history. Consistent with management’s stated objective of a 40% payout ratio against core earnings, the Board of Directors declared a cash dividend of $0.11 per share for holders of record as of November 6, 2013 and payable on November 25, 2013.
The third quarter of 2013 reflects a 17% increase in banking segment pretax earnings in comparison to the third quarter of 2012. The mortgage segment contribution declined 53% for the nine months ended September 30, 2013 in comparison with the same period in 2012 due to a reduction in volume and gain on sale margin. While the company has suffered volume reduction and margin compression consistent with the overall market, the mortgage segment has experienced further reductions in volume due to the strategic decision to close a significant out-of-market office in April 2013. The third quarter of 2013 represented a transition period for the mortgage segment as it reported near break-even performance while overhead staffing was reduced to align overhead with expected production. Through September 30, 2013, the mortgage division’s pre-tax contribution is 30%, which aligns with management’s intent, being that 70-80% of the Corporation’s net income is generated from the core business of the Bank. While mortgage banking remains an important component of both the client and shareholder value proposition, the extraordinary mortgage contributions of prior years are not expected to return. In order to blunt the adverse impact of a mortgage segment in transition, the commercial banking segment elected to sell $10.6 million of SBA Guaranteed loans that resulted in an after-tax gain of $602 thousand.
Net interest margin for the first nine months of 2013 decreased to 3.83% from 3.95% for the same period in 2012. On a linked quarter basis, the 3.88% margin was essentially flat for the three months ended September 30, 2013 compared to 3.89% reported in the prior quarter.
On a consolidated basis, management believes the Corporation’s results continue to compare favorably to similar banking companies as evidenced by the annualized return on average assets of 1.35% and 1.56% for the three and nine month periods ended September 30, 2013. Meanwhile, the annualized return on average equity was 11.87% and 14.22% for the three and nine month periods ended September 30, 2013, respectively.
Total assets amounted to $846.6 million compared to $863.9 million at December 31, 2012, an overall decline of $17.3 million. The decrease in loans held for sale of $95.2 million was offset by a growth in interest-bearing balances of $40.0 million and loans held for investment of $37.8 million. Following the sale of $10.6 million in SBA Guaranteed loans, loans held for investment increased at an annualized rate of 8.3% or $13.4 million on a linked quarter basis. Absent the loan sale, loans held for investment would have increased $24.0 million or at an annualized rate of 15.0% on a linked quarter basis, driven by growth in commercial loans.
Total deposits at September 30, 2013 increased $3.8 million from December 31, 2012. Management continues to focus on expanding business banking relationships as evidenced by the increase in demand deposits of $71.6 million or 30.44% from December 31, 2012, which comprised 45.44% of the deposit portfolio at September 30, 2013. Management has viewed brokered deposits and CDARS as cost effective methods of funding the mortgage division’s warehouse on loans held for sale as well as its investment portfolio. The $57.2 million reduction in brokered deposits and CDARS was a planned response to the decrease in mortgage loans held for sale.
Non-performing assets (NPAs) increased to $2.9 million or 0.34% of total assets at September 30, 2013, up from $2.7 million or 0.32% of assets at December 31, 2012. The Corporation did not have other real estate owned at September 30, 2013 or December 31, 2012. The allowance for loan losses totaled $13.0 million and $12.5 million or 1.99% and 2.03% of total loans held for investment as of September 30, 2013 and December 31, 2012, respectively.
Book value per common share increased 5.5% at September 30, 2013 to $9.34, from $8.85 at December 31, 2012. The ratio of total equity to total assets for Access National Corporation and its subsidiary bank was 11.39% at September 30, 2013 and continued to exceed standards of being “Well Capitalized” as set forth under banking regulations.
Access National Corporation is the parent company of Access National Bank, an independent, nationally chartered bank serving the business community of the greater Washington DC Metropolitan area. Additional information is available on our website at www.AccessNationalBank.com. Shares of Access National Corporation are traded on the NASDAQ Global Market under the symbol "ANCX".
This press release contains “forward-looking statements” within the meaning of the federal securities laws. These statements may be identified as “may”, “could”, “expect”, “believe”, anticipate”, “intend”, “plan” or variations thereof. These forward-looking statements may contain information related to those matters such as the Company’s intent, belief, or expectation with respect to matters such as financial performance. Such statements are necessarily based on assumptions and estimates and are inherently subject to a variety of risks and uncertainties concerning the Company’s operations and business environment, which are difficult to predict and beyond control of the company. Such risks and uncertainties could cause the actual results of the Company to differ materially from those matters expressed or implied in such forward-looking statements. For an explanation of certain risks and uncertainties associated with forward-looking statements, please refer to the Company’s Annual Report on Form 10-K and other SEC filings.
| Access National Corporation | |||||||||||||
| Consolidated Balance Sheet | |||||||||||||
| September 30, | December 31, | September 30, | |||||||||||
| 2013 | 2012 | 2012 | |||||||||||
| (In Thousands) | (Unaudited) | (Unaudited) | |||||||||||
| ASSETS | |||||||||||||
| Cash and due from banks | $ | 9,556 | $ | 15,735 | $ | 13,090 | |||||||
| Interest-bearing balances and federal funds sold | 62,221 | 22,206 | 43,360 | ||||||||||
| Investment securities: | |||||||||||||
| Available-for-sale, at fair value | 72,692 | 35,759 | 36,719 | ||||||||||
| Held-to-maturity, at amortized cost (fair value of $15,426, $45,308 and $65,454) | 15,856 | 44,952 | 64,939 | ||||||||||
| Total investment securities | 88,548 | 80,711 | 101,658 | ||||||||||
| Restricted Stock, at amortized cost | 3,834 | 4,237 | 2,824 | ||||||||||
| Loans held for sale - at fair value | 16,376 | 111,542 | 84,011 | ||||||||||
Loans held for investment net of allowance for loan losses of $13,025, $12,500 and $12,048, respectively | 641,782 | 604,478 | 578,571 | ||||||||||
| Premises, equipment and land, net | 8,401 | 8,517 | 8,425 | ||||||||||
| Other assets | 15,846 | 16,488 | 17,409 | ||||||||||
| Total assets | $ | 846,564 | $ | 863,914 | $ | 849,348 | |||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||
| LIABILITIES | |||||||||||||
| Noninterest-bearing deposits | $ | 215,711 | $ | 164,161 | $ | 192,813 | |||||||
| Savings and interest-bearing deposits | 213,304 | 187,997 | 193,840 | ||||||||||
| Time deposits | 246,309 | 319,338 | 319,129 | ||||||||||
| Total deposits | 675,324 | 671,496 | 705,782 | ||||||||||
| Short-term borrowings | 64,030 | 83,091 | 26,770 | ||||||||||
| Long-term borrowings | - | - | 2,661 | ||||||||||
| Subordinated debentures | - | 6,186 | 6,186 | ||||||||||
| Other liabilities and accrued expenses | 10,792 | 11,874 | 15,167 | ||||||||||
| Total Liabilities | 750,146 | 772,647 | 756,566 | ||||||||||
| SHAREHOLDERS' EQUITY | |||||||||||||
Common stock $0.835 par value; 60,000,000 authorized; issued and outstanding,10,321,858, 10,317,767 and 10,277,267 shares, respectively | 8,619 | 8,615 | 8,582 | ||||||||||
| Additional paid in capital | 16,973 | 17,155 | 16,896 | ||||||||||
| Retained earnings | 72,324 | 65,404 | 67,189 | ||||||||||
| Accumulated other comprehensive income (loss), net | (1,498 | ) | 93 | 115 | |||||||||
| Total shareholders' equity | 96,418 | 91,267 | 92,782 | ||||||||||
| Total liabilities and shareholders' equity | $ | 846,564 | $ | 863,914 | $ | 849,348 | |||||||
| Access National Corporation | |||||||||||||
| Consolidated Statement of Operations | |||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||
| September 30, 2013 | September 30, 2013 | September 30, 2012 | |||||||||||
| (In Thousands Except for Share and Per Share Data) | (unaudited) | (unaudited) | |||||||||||
| INTEREST INCOME | |||||||||||||
| Interest and fees on loans | $ | 8,262 | $ | 25,468 | $ | 25,672 | |||||||
| Interest on federal funds sold and bank balances | 22 | 76 | 62 | ||||||||||
| Interest on securities | 457 | 1,439 | 1,791 | ||||||||||
| Total interest income | 8,741 | 26,983 | 27,525 | ||||||||||
| INTEREST EXPENSE | |||||||||||||
| Interest on deposits | 799 | 2,766 | 3,512 | ||||||||||
| Interest on other borrowings | 31 | 165 | 434 | ||||||||||
| Total interest expense | 830 | 2,931 | 3,946 | ||||||||||
| Net interest income | 7,911 | 24,052 | 23,579 | ||||||||||
| Provision for loan losses | 450 | 675 | 1,340 | ||||||||||
| Net interest income after provision for loan losses | 7,461 | 23,377 | 22,239 | ||||||||||
| NONINTEREST INCOME | |||||||||||||
| Service charges and fees | 188 | 495 | 487 | ||||||||||
| Gain on sale of loans | 3,179 | 18,180 | 43,161 | ||||||||||
| Other Income | 1,712 | 5,271 | (5,090 | ) | |||||||||
| Total noninterest income | 5,079 | 23,946 | 38,558 | ||||||||||
| NONINTEREST EXPENSE | |||||||||||||
| Salaries and benefits | 5,672 | 20,540 | 23,826 | ||||||||||
| Occupancy and equipment | 641 | 1,961 | 1,941 | ||||||||||
| Other operating expense | 2,324 | 9,324 | 16,471 | ||||||||||
| Total noninterest expense | 8,637 | 31,825 | 42,238 | ||||||||||
| Income before income tax | 3,903 | 15,498 | 18,559 | ||||||||||
| Income tax expense | 1,098 | 5,485 | 7,099 | ||||||||||
| NET INCOME | 2,805 | 10,013 | 11,460 | ||||||||||
| Earnings per common share: | |||||||||||||
| Basic | $ | 0.27 | $ | 0.97 | $ | 1.12 | |||||||
| Diluted | $ | 0.27 | $ | 0.96 | $ | 1.11 | |||||||
| Average outstanding shares: | |||||||||||||
| Basic | 10,306,865 | 10,312,017 | 10,236,472 | ||||||||||
| Diluted | 10,389,064 | 10,402,178 | 10,350,833 | ||||||||||
| Performance and Capital Ratios | ||||||||||||||||||||
| Three Months | Nine Months | Nine Months | Twelve Months | |||||||||||||||||
| Ended | Ended | Ended | Ended | |||||||||||||||||
| September 30, | September 30, | September 30, | December 31, | |||||||||||||||||
| (Dollars In Thousands) | 2013 | 2013 | 2012 | 2012 | ||||||||||||||||
| Return on average assets (annualized) | 1.35 | % | 1.56 | % | 1.86 | % | 2.15 | % | ||||||||||||
| Return on average equity (annualized) | 11.87 | % | 14.22 | % | 17.19 | % | 19.68 | % | ||||||||||||
| Net interest margin | 3.88 | % | 3.83 | % | 3.95 | % | 3.94 | % | ||||||||||||
| Efficiency ratio - Bank only | 48.02 | % | 50.78 | % | 53.03 | % | 51.71 | % | ||||||||||||
| Total average equity to earning assets | 11.59 | % | 11.22 | % | 11.16 | % | 11.24 | % | ||||||||||||
| Averages | ||||||||||||||||||||
| Assets | $ | 831,087 | $ | 856,483 | $ | 820,292 | $ | 826,233 | ||||||||||||
| Loans held for investment | 655,162 | 642,543 | 578,014 | 583,724 | ||||||||||||||||
| Loans held for sale | 26,335 | 50,128 | 74,929 | 78,543 | ||||||||||||||||
| Interest-bearing deposits & federal funds sold | 39,337 | 45,456 | 36,108 | 33,272 | ||||||||||||||||
| Investment securities | 92,572 | 97,707 | 107,684 | 105,520 | ||||||||||||||||
| Earning assets | 815,827 | 836,767 | 796,596 | 800,917 | ||||||||||||||||
| Interest-bearing deposits | 452,852 | 512,009 | 532,692 | 526,346 | ||||||||||||||||
| Total deposits | 653,733 | 699,076 | 669,306 | 672,693 | ||||||||||||||||
| Repurchase agreements & federal funds purchased | 23,378 | 25,652 | 26,717 | 26,744 | ||||||||||||||||
| Commercial paper & other short term borrowings | 50,269 | 28,379 | 12,841 | 14,748 | ||||||||||||||||
| Long-term borrowings | - | - | 9,835 | 9,201 | ||||||||||||||||
| Equity | $ | 94,536 | $ | 93,876 | $ | 88,897 | $ | 90,047 | ||||||||||||
| Banking segment - income before taxes | $ | 4,368 | $ | 12,393 | $ | 10,478 | $ | 14,730 | ||||||||||||
| Mortgage segment - income before taxes | $ | (50 | ) | $ | 4,645 | $ | 9,865 | $ | 15,656 | |||||||||||
| Other segments - income before taxes | $ | (415 | ) | $ | (1,540 | ) | $ | (1,784 | ) | $ | (1,955 | ) | ||||||||
| Mortgage loan originations and brokered loans | $ | 103,114 | $ | 492,221 | $ | 807,952 | $ | 1,130,089 | ||||||||||||
| Allowance for losses on mortgage loans sold | $ | 4,645 | $ | 4,645 | $ | 4,802 | $ | 4,376 | ||||||||||||
| Book value per common share | $ | 9.34 | $ | 9.34 | $ | 9.03 | $ | 8.85 | ||||||||||||
| Composition of Loan Portfolio | ||||||||||||||||
| September 30, 2013 | December 31, 2012 | |||||||||||||||
| (Dollars In Thousands) | Amount | Percentage of Total | Amount | Percentage of Total | ||||||||||||
| Commercial real estate-owner occupied | $ | 191,929 | 29.31 | % | $ | 182,655 | 29.60 | % | ||||||||
| Commercial real estate-non owner occupied | 95,011 | 14.51 | 107,213 | 17.38 | ||||||||||||
| Residential real estate | 166,600 | 25.44 | 144,521 | 23.43 | ||||||||||||
| Commercial | 160,085 | 24.45 | 149,389 | 24.21 | ||||||||||||
| Real estate construction | 36,256 | 5.54 | 30,038 | 4.87 | ||||||||||||
| Consumer | 4,926 | 0.75 | 3,162 | 0.51 | ||||||||||||
| Total loans | $ | 654,807 | 100.00 | % | $ | 616,978 | 100.00 | % | ||||||||
| Less allowance for loan losses | 13,025 | 12,500 | ||||||||||||||
| $ | 641,782 | $ | 604,478 | |||||||||||||
| Composition of Deposits | ||||||||||||||||
| September 30, 2013 | December 31, 2012 | |||||||||||||||
| (Dollars In Thousands) | Amount | Percentage of Total | Amount | Percentage of Total | ||||||||||||
| Demand deposits | $ | 215,711 | 31.95 | % | $ | 164,161 | 24.45 | % | ||||||||
| Interest-bearing demand deposits | 91,090 | 13.49 | 71,015 | 10.58 | ||||||||||||
| Savings and money market | 121,793 | 18.03 | 116,554 | 17.36 | ||||||||||||
| CDARS-reciprocal time deposits | 127,840 | 18.93 | 170,835 | 25.44 | ||||||||||||
| Brokered deposits | 15,064 | 2.23 | 29,277 | 4.35 | ||||||||||||
| Time deposits | 103,826 | 15.37 | 119,654 | 17.82 | ||||||||||||
| Total Deposits | $ | 675,324 | 100.00 | % | $ | 671,496 | 100.00 | % | ||||||||
| Asset Quality Trend Profile | |||||||||||||||||||||||||
| Nine Months | Six Months | Three Months | Twelve Months | Nine Months | |||||||||||||||||||||
| Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||||
| (Dollars In Thousands) | September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 | September 30, 2012 | ||||||||||||||||||||
| Total assets | $ | 846,564 | $ | 841,683 | $ | 876,361 | $ | 863,914 | $ | 849,348 | |||||||||||||||
| Total loans held for investment | $ | 654,807 | $ | 641,464 | $ | 639,696 | $ | 616,978 | $ | 590,619 | |||||||||||||||
| Allowance for loan losses - beginning balance | $ | 12,500 | $ | 12,500 | $ | 12,500 | $ | 11,738 | $ | 11,738 | |||||||||||||||
| Charge offs | (476 | ) | - | - | (2,165 | ) | (1,829 | ) | |||||||||||||||||
| Recoveries | 326 | 282 | 135 | 1,412 | 799 | ||||||||||||||||||||
| Net charge offs | (150 | ) | 282 | 135 | (753 | ) | (1,030 | ) | |||||||||||||||||
| Provision for loan losses | 675 | 225 | 225 | 1,515 | 1,340 | ||||||||||||||||||||
| Allowance for loan losses - ending balance | $ | 13,025 | $ | 13,007 | $ | 12,860 | $ | 12,500 | $ | 12,048 | |||||||||||||||
| Allowance for loan losses/loans held for investment | 1.99 | % | 2.03 | % | 2.01 | % | 2.03 | % | 2.04 | % | |||||||||||||||
| Delinquent 30 - 90 days | $ | - | $ | 1,070 | $ | 671 | $ | - | $ | - | |||||||||||||||
| Percentage of loans delinquent | 0.00 | % | 0.17 | % | 0.10 | % | 0.00 | % | 0.00 | % | |||||||||||||||
| Non-accrual loans | $ | 2,902 | $ | 2,299 | $ | 1,738 | $ | 2,743 | $ | 3,626 | |||||||||||||||
| OREO | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||
| Total NPA | $ | 2,902 | $ | 2,299 | $ | 1,738 | $ | 2,743 | $ | 3,626 | |||||||||||||||
| NPA to total assets | 0.34 | % | 0.27 | % | 0.20 | % | 0.32 | % | 0.43 | % | |||||||||||||||
| Allowance for loan losses/NPA | 448.83 | % | 565.77 | % | 739.93 | % | 455.71 | % | 332.27 | % | |||||||||||||||
| OREO Expense | $ | 40 | $ | 40 | $ | 39 | $ | 6 | $ | 1 | |||||||||||||||
| Gain on Sale of OREO | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||
| OREO expense net | $ | 40 | $ | 40 | $ | 39 | $ | 6 | $ | 1 | |||||||||||||||
| Allowance for losses on mortgage loans sold | $ | 4,645 | $ | 4,645 | $ | 4,475 | $ | 4,376 | $ | 4,802 | |||||||||||||||
| Provision for losses on mortgage loans sold | $ | 388 | $ | 388 | $ | 218 | $ | 2,510 | $ | 2,186 | |||||||||||||||
| Yield on Average Earning Assets and Rates on Average Interest-Bearing Liabilities | |||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||
| September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||
| Average | Income / | Yield / | Average | Income / | Yield / | ||||||||||||||||||||||
| Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||||||
| (Dollars In Thousands) | |||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||
| Interest earning assets: | |||||||||||||||||||||||||||
| Securities | $ | 94,993 | $ | 457 | 1.92 | % | $ | 104,901 | $ | 528 | 2.01 | % | |||||||||||||||
| Loans held for sale | 26,335 | 264 | 4.01 | % | 87,355 | 818 | 3.75 | % | |||||||||||||||||||
| Loans(1) | 655,162 | 7,998 | 4.88 | % | 586,060 | 7,814 | 5.33 | % | |||||||||||||||||||
| Interest-bearing balances and federal funds sold | 39,337 | 22 | 0.22 | % | 30,303 | 12 | 0.16 | % | |||||||||||||||||||
| Total interest earning assets | 815,827 | 8,741 | 4.29 | % | 808,619 | 9,172 | 4.54 | % | |||||||||||||||||||
| Noninterest earning assets: | |||||||||||||||||||||||||||
| Cash and due from banks | 8,602 | 12,110 | |||||||||||||||||||||||||
| Premises, land and equipment | 8,433 | 8,486 | |||||||||||||||||||||||||
| Other assets | 11,258 | 18,018 | |||||||||||||||||||||||||
| Less: allowance for loan losses | (13,033 | ) | (12,103 | ) | |||||||||||||||||||||||
| Total noninterest earning assets | 15,260 | 26,511 | |||||||||||||||||||||||||
| Total Assets | $ | 831,087 | $ | 835,130 | |||||||||||||||||||||||
| Liabilities and Shareholders' Equity: | |||||||||||||||||||||||||||
| Interest-bearing deposits: | |||||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 74,105 | $ | 38 | 0.21 | % | $ | 70,637 | $ | 35 | 0.20 | % | |||||||||||||||
| Money market deposit accounts | 118,330 | 59 | 0.20 | % | 118,330 | 115 | 0.39 | % | |||||||||||||||||||
| Savings accounts | 2,341 | 1 | 0.17 | % | 2,600 | 1 | 0.15 | % | |||||||||||||||||||
| Time deposits | 258,076 | 701 | 1.09 | % | 337,519 | 938 | 1.11 | % | |||||||||||||||||||
| Total interest-bearing deposits | 452,852 | 799 | 0.71 | % | 529,086 | 1,089 | 0.82 | % | |||||||||||||||||||
| Borrowings: | |||||||||||||||||||||||||||
| FHLB Advances | 50,000 | 27 | 0.22 | % | 5,557 | 11 | 0.79 | % | |||||||||||||||||||
| Securities sold under agreements to repurchase and federal funds purchased | 23,378 | 7 | 0.12 | % | 26,946 | 9 | 0.13 | % | |||||||||||||||||||
| Other short-term borrowings | - | - | 0.00 | % | - | - | 0.00 | % | |||||||||||||||||||
| FHLB Long-term borrowings | - | - | 0.00 | % | 2,949 | 28 | 3.80 | % | |||||||||||||||||||
| FDIC Term Note | - | - | 0.00 | % | - | - | 0.00 | % | |||||||||||||||||||
| Subordinated Debentures | 269 | (3 | ) | -4.46 | % | 6,186 | 56 | 3.62 | % | ||||||||||||||||||
| Total borrowings | 73,647 | 31 | 0.17 | % | 41,638 | 104 | 1.00 | % | |||||||||||||||||||
| Total interest-bearing deposits and borrowings | 526,499 | 830 | 0.63 | % | 570,724 | 1,193 | 0.84 | % | |||||||||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||||||||
| Demand deposits | 200,881 | 160,787 | |||||||||||||||||||||||||
| Other liabilities | 9,171 | 11,413 | |||||||||||||||||||||||||
| Total liabilities | 736,551 | 742,924 | |||||||||||||||||||||||||
| Shareholders' Equity | 94,536 | 92,206 | |||||||||||||||||||||||||
| Total Liabilities and Shareholders' Equity: | $ | 831,087 | $ | 835,130 | |||||||||||||||||||||||
| Interest Spread(2) | 3.66 | % | 3.70 | % | |||||||||||||||||||||||
| Net Interest Margin(3) | $ | 7,911 | 3.88 | % | $ | 7,979 | 3.95 | % | |||||||||||||||||||
(1) Loans placed on nonaccrual status are included in loan balances
(2) Interest spread is the average yield earned on earning assets, less the average rate incurred on interest-bearing liabilities.
(3) Net interest margin is net interest income, expressed as a percentage of average earning assets.
| Yield on Average Earning Assets and Rates on Average Interest-Bearing Liabilities | ||||||||||||||||||||||||||
| Nine Months Ended | ||||||||||||||||||||||||||
| September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||||
| Average | Income / | Yield / | Average | Income / | Yield / | |||||||||||||||||||||
| Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||||
| (Dollars In Thousands) | ||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Interest earning assets: | ||||||||||||||||||||||||||
| Securities | $ | 98,640 | $ | 1,439 | 1.95 | % | $ | 107,545 | $ | 1,791 | 2.22 | % | ||||||||||||||
| Loans held for sale | 50,128 | 1,308 | 3.48 | % | 74,929 | 2,179 | 3.88 | % | ||||||||||||||||||
| Loans(1) | 642,543 | 24,160 | 5.01 | % | 578,014 | 23,493 | 5.42 | % | ||||||||||||||||||
| Interest-bearing balances and federal funds sold | 45,456 | 76 | 0.22 | % | 36,108 | 62 | 0.23 | % | ||||||||||||||||||
| Total interest earning assets | 836,767 | 26,983 | 4.30 | % | 796,596 | 27,525 | 4.61 | % | ||||||||||||||||||
| Noninterest earning assets: | ||||||||||||||||||||||||||
| Cash and due from banks | 10,629 | 10,159 | ||||||||||||||||||||||||
| Premises, land and equipment | 8,491 | 8,563 | ||||||||||||||||||||||||
| Other assets | 13,456 | 16,926 | ||||||||||||||||||||||||
| Less: allowance for loan losses | (12,860 | ) | (11,952 | ) | ||||||||||||||||||||||
| Total noninterest earning assets | 19,716 | 23,696 | ||||||||||||||||||||||||
| Total Assets | $ | 856,483 | $ | 820,292 | ||||||||||||||||||||||
| Liabilities and Shareholders' Equity: | ||||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 73,751 | $ | 105 | 0.19 | % | $ | 65,805 | $ | 126 | 0.26 | % | ||||||||||||||
| Money market deposit accounts | 119,906 | 221 | 0.25 | % | 122,543 | 385 | 0.42 | % | ||||||||||||||||||
| Savings accounts | 2,428 | 3 | 0.16 | % | 2,612 | 3 | 0.15 | % | ||||||||||||||||||
| Time deposits | 315,924 | 2,437 | 1.03 | % | 341,732 | 2,998 | 1.17 | % | ||||||||||||||||||
| Total interest-bearing deposits | 512,009 | 2,766 | 0.72 | % | 532,692 | 3,512 | 0.88 | % | ||||||||||||||||||
| Borrowings: | ||||||||||||||||||||||||||
| FHLB Advances | 24,187 | 42 | 0.23 | % | 8,023 | 39 | 0.65 | % | ||||||||||||||||||
| Securities sold under agreements to repurchase and federal funds purchased | 25,652 | 20 | 0.10 | % | 26,717 | 28 | 0.14 | % | ||||||||||||||||||
| Other short-term borrowings | - | - | 0.00 | % | - | - | 0.00 | % | ||||||||||||||||||
| FHLB Long-term borrowings | - | - | 0.00 | % | 3,649 | 100 | 3.65 | % | ||||||||||||||||||
| FDIC Term Note | - | - | 0.00 | % | 4,818 | 98 | 2.71 | % | ||||||||||||||||||
| Subordinated Debentures | 4,192 | 103 | 3.28 | % | 6,186 | 169 | 3.64 | % | ||||||||||||||||||
| Total borrowings | 54,031 | 165 | 0.41 | % | 49,393 | 434 | 1.17 | % | ||||||||||||||||||
| Total interest-bearing deposits and borrowings | 566,040 | 2,931 | 0.69 | % | 582,085 | 3,946 | 0.90 | % | ||||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||||
| Demand deposits | 187,067 | 136,614 | ||||||||||||||||||||||||
| Other liabilities | 9,500 | 12,696 | ||||||||||||||||||||||||
| Total liabilities | 762,607 | 731,395 | ||||||||||||||||||||||||
| Shareholders' Equity | 93,876 | 88,897 | ||||||||||||||||||||||||
| Total Liabilities and Shareholders' Equity: | $ | 856,483 | $ | 820,292 | ||||||||||||||||||||||
| Interest Spread(2) | 3.61 | % | 3.70 | % | ||||||||||||||||||||||
| Net Interest Margin(3) | $ | 24,052 | 3.83 | % | $ | 23,579 | 3.95 | % | ||||||||||||||||||
(1) Loans placed on nonaccrual status are included in loan balances
(2) Interest spread is the average yield earned on earning assets, less the average rate incurred on interest-bearing liabilities.
(3) Net interest margin is net interest income, expressed as a percentage of average earning assets.
Contacts:
Michael Clarke, 703-871-2100
