Pennsylvania | 000-55983 | 83-1561918 | ||||||||||||
(State or other jurisdiction
of incorporation)
|
(Commission
File Number)
|
(IRS Employer
Ident. No.)
|
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9 Old Lincoln Highway, Malvern, Pennsylvania |
19355 | |||||||||||||
(Address of principal executive offices) | (Zip Code) | |||||||||||||
(484) 568-5000
Registrant’s telephone number, including area code
| ||||||||||||||
Not Applicable | ||||||||||||||
(Former name or former address, if changed since last report.) |
Title of each class: |
Trading Symbol(s) | Name of each exchange on which registered: | ||||||||||||
Common Stock, $1 par value |
MRBK | The NASDAQ Stock Market |
Exhibit No. | Description of Exhibit | |||||||
Earnings Supplement, issued July 26, 2024 |
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104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
MERIDIAN CORPORATION (Registrant) |
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Dated: July 26, 2024 |
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By: | /s/ Denise Lindsay | |||||||||||||
Denise Lindsay | ||||||||||||||
Executive Vice President and Chief Financial Officer | ||||||||||||||
Three Months Ended | |||||||||||||||||
(Dollars in thousands, except per share data)((Unaudited) | June 30, 2024 |
March 31, 2024 |
June 30, 2023 |
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Income: |
|||||||||||||||||
Net income |
$ | 3,326 | $ | 2,676 | $ | 4,645 | |||||||||||
Diluted earnings per common share | $ | 0.30 | $ | 0.24 | $ | 0.41 | |||||||||||
Pre-tax, pre-provision income (1) |
$ | 7,072 | $ | 6,419 | $ | 6,607 | |||||||||||
(1) See Non-GAAP reconciliation in the Appendix |
As of or for the quarter ended (Unaudited) |
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June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
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(Dollars in thousands, except per share data) |
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Income: | |||||||||||||||||||||||||||||
Net income |
$ | 3,326 | $ | 2,676 | $ | 571 | $ | 4,005 | $ | 4,645 | |||||||||||||||||||
Basic earnings per common share | 0.30 | 0.24 | 0.05 | 0.36 | 0.42 | ||||||||||||||||||||||||
Diluted earnings per common share | 0.30 | 0.24 | 0.05 | 0.35 | 0.41 | ||||||||||||||||||||||||
Net interest income |
16,846 | 16,609 | 16,942 | 17,224 | 17,098 | ||||||||||||||||||||||||
Balance Sheet: | |||||||||||||||||||||||||||||
Total assets | $ | 2,351,584 | $ | 2,292,923 | $ | 2,246,193 | $ | 2,230,971 | $ | 2,206,877 | |||||||||||||||||||
Loans, net of fees and costs |
1,988,535 | 1,956,315 | 1,895,806 | 1,885,629 | 1,859,839 | ||||||||||||||||||||||||
Total deposits | 1,915,436 | 1,900,696 | 1,823,462 | 1,808,645 | 1,782,605 | ||||||||||||||||||||||||
Non-interest bearing deposits | 224,040 | 220,581 | 239,289 | 244,668 | 269,174 | ||||||||||||||||||||||||
Stockholders' equity |
162,382 | 159,936 | 158,022 | 155,114 | 153,962 | ||||||||||||||||||||||||
Balance Sheet Average Balances: |
|||||||||||||||||||||||||||||
Total assets | $ | 2,319,295 | $ | 2,269,047 | $ | 2,219,340 | $ | 2,184,384 | $ | 2,166,575 | |||||||||||||||||||
Total interest earning assets | 2,222,177 | 2,173,212 | 2,121,068 | 2,086,602 | 2,070,640 | ||||||||||||||||||||||||
Loans, net of fees and costs |
1,972,740 | 1,944,187 | 1,891,170 | 1,876,648 | 1,847,736 | ||||||||||||||||||||||||
Total deposits | 1,919,954 | 1,823,523 | 1,820,532 | 1,782,140 | 1,775,444 | ||||||||||||||||||||||||
Non-interest bearing deposits | 229,040 | 233,255 | 254,025 | 253,485 | 266,675 | ||||||||||||||||||||||||
Stockholders' equity |
162,119 | 159,822 | 157,210 | 156,271 | 154,183 | ||||||||||||||||||||||||
Performance Ratios (Annualized): | |||||||||||||||||||||||||||||
Return on average assets |
0.58 | % | 0.47 | % | 0.10 | % | 0.73 | % | 0.86 | % | |||||||||||||||||||
Return on average equity |
8.25 | % | 6.73 | % | 1.44 | % | 10.17 | % | 12.08 | % |
Quarter Ended | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | June 30, 2024 |
March 31, 2024 |
$ Change | % Change | Change due to rate | Change due to volume | |||||||||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 331 | 300 | $ | 31 | 10.3 | % | $ | (2) | $ | 33 | |||||||||||||||||||||||||
Investment securities - taxable | 1,324 | 1,251 | 73 | 5.8 | % | 38 | 35 | ||||||||||||||||||||||||||||
Investment securities - tax exempt (1) |
403 | 405 | (2) | (0.5) | % | 5 | (7) | ||||||||||||||||||||||||||||
Loans held for sale | 572 | 323 | 249 | 77.1 | % | (3) | 252 | ||||||||||||||||||||||||||||
Loans held for investment (1) |
35,916 | 35,018 | 898 | 2.6 | % | 381 | 517 | ||||||||||||||||||||||||||||
Total loans | 36,488 | 35,341 | 1,147 | 3.2 | % | 378 | 769 | ||||||||||||||||||||||||||||
Total interest income | $ | 38,546 | $ | 37,297 | $ | 1,249 | 3.3 | % | $ | 419 | $ | 830 | |||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 1,279 | $ | 1,367 | $ | (88) | (6.4) | % | $ | (28) | $ | (60) | |||||||||||||||||||||||
Money market and savings deposits | 8,265 | 7,855 | 410 | 5.2 | % | 284 | 126 | ||||||||||||||||||||||||||||
Time deposits | 9,447 | 8,170 | 1,277 | 15.6 | % | 121 | 1,156 | ||||||||||||||||||||||||||||
Total interest - bearing deposits | 18,991 | 17,392 | 1,599 | 9.2 | % | 377 | 1,222 | ||||||||||||||||||||||||||||
Borrowings | 1,851 | 2,435 | (584) | (24.0) | % | (20) | (564) | ||||||||||||||||||||||||||||
Subordinated debentures | 777 | 779 | (2) | (0.3) | % | (2) | — | ||||||||||||||||||||||||||||
Total interest expense | 21,619 | 20,606 | 1,013 | 4.9 | % | 355 | 658 | ||||||||||||||||||||||||||||
Net interest income differential | $ | 16,927 | $ | 16,691 | $ | 236 | 1.41 | % | $ | 64 | $ | 172 | |||||||||||||||||||||||
(1) Reflected on a tax-equivalent basis. |
Quarter Ended | |||||||||||||||||||||||
(Dollars in thousands) | June 30, 2024 |
March 31, 2024 |
$ Change | % Change | |||||||||||||||||||
Mortgage banking income | $ | 5,420 | $ | 3,634 | $ | 1,786 | 49.1 | % | |||||||||||||||
Wealth management income | 1,444 | 1,317 | 127 | 9.6 | % | ||||||||||||||||||
SBA loan income | 785 | 986 | (201) | (20.4) | % | ||||||||||||||||||
Earnings on investment in life insurance | 215 | 207 | 8 | 3.9 | % | ||||||||||||||||||
Net change in the fair value of derivative instruments | 203 | 75 | 128 | 170.7 | % | ||||||||||||||||||
Net change in the fair value of loans held-for-sale | (29) | (2) | (27) | 1350.0 | % | ||||||||||||||||||
Net change in the fair value of loans held-for-investment | (24) | (175) | 151 | (86.3) | % | ||||||||||||||||||
Net loss on hedging activity | (63) | (19) | (44) | 231.6 | % | ||||||||||||||||||
Other | 1,293 | 1,961 | (668) | (34.1) | % | ||||||||||||||||||
Total non-interest income | $ | 9,244 | $ | 7,984 | $ | 1,260 | 15.8 | % |
Quarter Ended | |||||||||||||||||||||||
(Dollars in thousands) | June 30, 2024 |
March 31, 2024 |
$ Change | % Change | |||||||||||||||||||
Salaries and employee benefits | $ | 11,437 | $ | 10,573 | $ | 864 | 8.2 | % | |||||||||||||||
Occupancy and equipment | 1,230 | 1,233 | (3) | (0.2) | % | ||||||||||||||||||
Professional fees | 1,029 | 1,498 | (469) | (31.3) | % | ||||||||||||||||||
Advertising and promotion | 989 | 748 | 241 | 32.2 | % | ||||||||||||||||||
Data processing and software | 1,506 | 1,532 | (26) | (1.7) | % | ||||||||||||||||||
Pennsylvania bank shares tax | 274 | 274 | — | — | % | ||||||||||||||||||
Other | 2,553 | 2,316 | 237 | 10.2 | % | ||||||||||||||||||
Total non-interest expense | $ | 19,018 | $ | 18,174 | $ | 844 | 4.6 | % |
Quarter Ended |
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June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
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Earnings and Per Share Data: |
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Net income | $ | 3,326 | $ | 2,676 | $ | 571 | $ | 4,005 | $ | 4,645 | |||||||||||||||||||
Basic earnings per common share | $ | 0.30 | $ | 0.24 | $ | 0.05 | $ | 0.36 | $ | 0.42 | |||||||||||||||||||
Diluted earnings per common share | $ | 0.30 | $ | 0.24 | $ | 0.05 | $ | 0.35 | $ | 0.41 | |||||||||||||||||||
Common shares outstanding | 11,191 | 11,186 | 11,183 | 11,178 | 11,178 | ||||||||||||||||||||||||
Performance Ratios: |
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Return on average assets (2) |
0.58 | % | 0.47 | % | 0.10 | % | 0.73 | % | 0.86 | % | |||||||||||||||||||
Return on average equity (2) |
8.25 | 6.73 | 1.44 | 10.17 | 12.08 | ||||||||||||||||||||||||
Net interest margin (tax-equivalent) (2) |
3.06 | 3.09 | 3.18 | 3.29 | 3.33 | ||||||||||||||||||||||||
Yield on earning assets (tax-equivalent) (2) |
6.98 | 6.90 | 6.81 | 6.76 | 6.57 | ||||||||||||||||||||||||
Cost of funds (2) |
4.10 | 4.00 | 3.81 | 3.63 | 3.39 | ||||||||||||||||||||||||
Efficiency ratio |
72.89 | % | 73.90 | % | 78.63 | % | 79.09 | % | 74.80 | % | |||||||||||||||||||
Asset Quality Ratios: |
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Net charge-offs (recoveries) to average loans | 0.20 | % | 0.12 | % | 0.11 | % | 0.05 | % | 0.05 | % | |||||||||||||||||||
Non-performing loans to total loans |
1.84 | 1.93 | 1.76 | 1.53 | 1.44 | ||||||||||||||||||||||||
Non-performing assets to total assets |
1.68 | 1.74 | 1.58 | 1.38 | 1.32 | ||||||||||||||||||||||||
Allowance for credit losses to: |
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Total loans held for investment |
1.09 | 1.18 | 1.17 | 1.04 | 1.09 | ||||||||||||||||||||||||
Total loans held for investment (excluding loans at fair value) (1) |
1.10 | 1.19 | 1.17 | 1.05 | 1.10 | ||||||||||||||||||||||||
Non-performing loans |
57.66 | % | 60.59 | % | 65.48 | % | 67.61 | % | 73.97 | % | |||||||||||||||||||
Capital Ratios: |
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Book value per common share | $ | 14.51 | $ | 14.30 | $ | 14.13 | $ | 13.88 | $ | 13.77 | |||||||||||||||||||
Tangible book value per common share | $ | 14.17 | $ | 13.96 | $ | 13.78 | $ | 13.53 | $ | 13.42 | |||||||||||||||||||
Total equity/Total assets | 6.91 | % | 6.98 | % | 7.04 | % | 6.95 | % | 6.98 | % | |||||||||||||||||||
Tangible common equity/Tangible assets - Corporation (1) |
6.76 | 6.82 | 6.87 | 6.79 | 6.81 | ||||||||||||||||||||||||
Tangible common equity/Tangible assets - Bank (1) |
8.85 | 8.93 | 8.94 | 8.89 | 8.54 | ||||||||||||||||||||||||
Tier 1 leverage ratio - Bank | 9.33 | 9.42 | 9.46 | 9.65 | 9.22 | ||||||||||||||||||||||||
Common tier 1 risk-based capital ratio - Bank | 9.84 | 9.87 | 10.10 | 10.82 | 10.35 | ||||||||||||||||||||||||
Tier 1 risk-based capital ratio - Bank | 9.84 | 9.87 | 10.10 | 10.82 | 10.35 | ||||||||||||||||||||||||
Total risk-based capital ratio - Bank | 10.84 | % | 10.95 | % | 11.17 | % | 11.85 | % | 11.43 | % | |||||||||||||||||||
(1) See Non-GAAP reconciliation in the Appendix | |||||||||||||||||||||||||||||
(2) Annualized |
Three Months Ended | Six Months Ended |
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June 30, 2024 |
March 31, 2024 |
June 30, 2023 |
June 30, 2024 |
June 30, 2023 |
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Interest income: | |||||||||||||||||||||||||||||
Loans and other finance receivables, including fees | $ | 36,486 | $ | 35,339 | $ | 32,215 | $ | 71,825 | $ | 61,632 | |||||||||||||||||||
Securities - taxable | 1,324 | 1,251 | 992 | 2,575 | 1,951 | ||||||||||||||||||||||||
Securities - tax-exempt | 324 | 325 | 351 | 649 | 705 | ||||||||||||||||||||||||
Cash and cash equivalents | 331 | 300 | 278 | 631 | 495 | ||||||||||||||||||||||||
Total interest income | 38,465 | 37,215 | 33,836 | 75,680 | 64,783 | ||||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||
Deposits | 18,991 | 17,392 | 14,023 | 36,383 | 25,470 | ||||||||||||||||||||||||
Borrowings | 2,628 | 3,214 | 2,715 | 5,842 | 4,538 | ||||||||||||||||||||||||
Total interest expense | 21,619 | 20,606 | 16,738 | 42,225 | 30,008 | ||||||||||||||||||||||||
Net interest income | 16,846 | 16,609 | 17,098 | 33,455 | 34,775 | ||||||||||||||||||||||||
Provision for credit losses | 2,680 | 2,866 | 705 | 5,546 | 2,104 | ||||||||||||||||||||||||
Net interest income after provision for credit losses | 14,166 | 13,743 | 16,393 | 27,909 | 32,671 | ||||||||||||||||||||||||
Non-interest income: | |||||||||||||||||||||||||||||
Mortgage banking income | 5,420 | 3,634 | 5,050 | 9,054 | 8,322 | ||||||||||||||||||||||||
Wealth management income | 1,444 | 1,317 | 1,235 | 2,761 | 2,431 | ||||||||||||||||||||||||
SBA loan income | 785 | 986 | 1,767 | 1,771 | 2,480 | ||||||||||||||||||||||||
Earnings on investment in life insurance | 215 | 207 | 193 | 422 | 385 | ||||||||||||||||||||||||
Net change in the fair value of derivative instruments | 203 | 75 | 183 | 278 | 114 | ||||||||||||||||||||||||
Net change in the fair value of loans held-for-sale | (29) | (2) | (199) | (31) | (200) | ||||||||||||||||||||||||
Net change in the fair value of loans held-for-investment | (24) | (175) | (219) | (199) | (102) | ||||||||||||||||||||||||
Net loss on hedging activity | (63) | (19) | (1) | (82) | (1) | ||||||||||||||||||||||||
Net loss on sale of investment securities available-for-sale | — | — | (54) | — | (54) | ||||||||||||||||||||||||
Other | 1,293 | 1,961 | 1,169 | 3,254 | 2,387 | ||||||||||||||||||||||||
Total non-interest income | 9,244 | 7,984 | 9,124 | 17,228 | 15,762 | ||||||||||||||||||||||||
Non-interest expense: | |||||||||||||||||||||||||||||
Salaries and employee benefits | 11,437 | 10,573 | 12,152 | 22,010 | 23,213 | ||||||||||||||||||||||||
Occupancy and equipment | 1,230 | 1,233 | 1,140 | 2,463 | 2,384 | ||||||||||||||||||||||||
Professional fees | 1,029 | 1,498 | 1,004 | 2,527 | 1,827 | ||||||||||||||||||||||||
Advertising and promotion | 989 | 748 | 1,091 | 1,737 | 1,952 | ||||||||||||||||||||||||
Data processing and software | 1,506 | 1,532 | 1,681 | 3,038 | 3,113 | ||||||||||||||||||||||||
Pennsylvania bank shares tax | 274 | 274 | 245 | 548 | 490 | ||||||||||||||||||||||||
Other | 2,553 | 2,316 | 2,302 | 4,869 | 4,425 | ||||||||||||||||||||||||
Total non-interest expense | 19,018 | 18,174 | 19,615 | 37,192 | 37,404 | ||||||||||||||||||||||||
Income before income taxes | 4,392 | 3,553 | 5,902 | 7,945 | 11,029 | ||||||||||||||||||||||||
Income tax expense | 1,066 | 877 | 1,257 | 1,943 | 2,363 | ||||||||||||||||||||||||
Net income | $ | 3,326 | $ | 2,676 | $ | 4,645 | $ | 6,002 | $ | 8,666 | |||||||||||||||||||
Basic earnings per common share | $ | 0.30 | $ | 0.24 | $ | 0.42 | $ | 0.54 | $ | 0.78 | |||||||||||||||||||
Diluted earnings per common share | $ | 0.30 | $ | 0.24 | $ | 0.41 | $ | 0.54 | $ | 0.75 | |||||||||||||||||||
Basic weighted average shares outstanding | 11,096 | 11,088 | 11,062 | 11,092 | 11,167 | ||||||||||||||||||||||||
Diluted weighted average shares outstanding | 11,150 | 11,201 | 11,304 | 11,178 | 11,494 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
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Assets: | |||||||||||||||||||||||||||||
Cash and due from banks | $ | 8,457 | $ | 8,935 | $ | 10,067 | $ | 12,734 | $ | 10,576 | |||||||||||||||||||
Interest-bearing deposits at other banks | 15,601 | 14,092 | 46,630 | 47,025 | 36,290 | ||||||||||||||||||||||||
Cash and cash equivalents | 24,058 | 23,027 | 56,697 | 59,759 | 46,866 | ||||||||||||||||||||||||
Securities available-for-sale, at fair value | 159,141 | 150,996 | 146,019 | 122,218 | 126,668 | ||||||||||||||||||||||||
Securities held-to-maturity, at amortized cost | 35,089 | 35,157 | 35,781 | 36,232 | 36,463 | ||||||||||||||||||||||||
Equity investments | 2,088 | 2,092 | 2,121 | 2,019 | 2,097 | ||||||||||||||||||||||||
Mortgage loans held for sale, at fair value | 54,278 | 29,124 | 24,816 | 23,144 | 40,422 | ||||||||||||||||||||||||
Loans and other finance receivables, net of fees and costs | 1,988,535 | 1,956,315 | 1,895,806 | 1,885,629 | 1,859,839 | ||||||||||||||||||||||||
Allowance for credit losses | (21,703) | (23,171) | (22,107) | (19,683) | (20,242) | ||||||||||||||||||||||||
Loans and other finance receivables, net of the allowance for credit losses | 1,966,832 | 1,933,144 | 1,873,699 | 1,865,946 | 1,839,597 | ||||||||||||||||||||||||
Restricted investment in bank stock | 10,044 | 8,560 | 8,072 | 8,309 | 9,157 | ||||||||||||||||||||||||
Bank premises and equipment, net | 13,114 | 13,451 | 13,557 | 13,310 | 13,234 | ||||||||||||||||||||||||
Bank owned life insurance | 29,267 | 29,051 | 28,844 | 28,641 | 28,440 | ||||||||||||||||||||||||
Accrued interest receivable | 9,973 | 9,864 | 9,325 | 8,984 | 7,651 | ||||||||||||||||||||||||
Other real estate owned | 1,862 | 1,703 | 1,703 | 1,703 | 1,703 | ||||||||||||||||||||||||
Deferred income taxes | 3,950 | 4,339 | 4,201 | 4,993 | 4,258 | ||||||||||||||||||||||||
Servicing assets | 11,341 | 11,573 | 11,748 | 11,835 | 12,193 | ||||||||||||||||||||||||
Goodwill | 899 | 899 | 899 | 899 | 899 | ||||||||||||||||||||||||
Intangible assets | 2,869 | 2,920 | 2,971 | 3,022 | 3,073 | ||||||||||||||||||||||||
Other assets | 26,779 | 37,023 | 25,740 | 39,957 | 34,156 | ||||||||||||||||||||||||
Total assets | $ | 2,351,584 | $ | 2,292,923 | $ | 2,246,193 | $ | 2,230,971 | $ | 2,206,877 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||
Non-interest bearing | $ | 224,040 | $ | 220,581 | $ | 239,289 | $ | 244,668 | $ | 269,174 | |||||||||||||||||||
Interest bearing | |||||||||||||||||||||||||||||
Interest checking | 130,062 | 121,204 | 150,898 | 156,537 | 155,907 | ||||||||||||||||||||||||
Money market and savings deposits | 787,479 | 797,525 | 747,803 | 746,599 | 710,546 | ||||||||||||||||||||||||
Time deposits | 773,855 | 761,386 | 685,472 | 660,841 | 646,978 | ||||||||||||||||||||||||
Total interest-bearing deposits | 1,691,396 | 1,680,115 | 1,584,173 | 1,563,977 | 1,513,431 | ||||||||||||||||||||||||
Total deposits | 1,915,436 | 1,900,696 | 1,823,462 | 1,808,645 | 1,782,605 | ||||||||||||||||||||||||
Borrowings | 187,260 | 145,803 | 174,896 | 177,959 | 194,636 | ||||||||||||||||||||||||
Subordinated debentures | 49,897 | 49,867 | 49,836 | 50,079 | 40,348 | ||||||||||||||||||||||||
Accrued interest payable | 7,709 | 8,350 | 10,324 | 7,814 | 5,612 | ||||||||||||||||||||||||
Other liabilities | 28,900 | 28,271 | 29,653 | 31,360 | 29,714 | ||||||||||||||||||||||||
Total liabilities | 2,189,202 | 2,132,987 | 2,088,171 | 2,075,857 | 2,052,915 | ||||||||||||||||||||||||
Stockholders’ equity: | |||||||||||||||||||||||||||||
Common stock | 13,194 | 13,189 | 13,186 | 13,181 | 13,181 | ||||||||||||||||||||||||
Surplus | 80,639 | 80,487 | 80,325 | 79,731 | 79,650 | ||||||||||||||||||||||||
Treasury stock | (26,079) | (26,079) | (26,079) | (26,079) | (26,079) | ||||||||||||||||||||||||
Unearned common stock held by employee stock ownership plan | (1,204) | (1,204) | (1,204) | (1,403) | (1,403) | ||||||||||||||||||||||||
Retained earnings | 104,420 | 102,492 | 101,216 | 102,043 | 99,434 | ||||||||||||||||||||||||
Accumulated other comprehensive loss | (8,588) | (8,949) | (9,422) | (12,359) | (10,821) | ||||||||||||||||||||||||
Total stockholders’ equity | 162,382 | 159,936 | 158,022 | 155,114 | 153,962 | ||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,351,584 | $ | 2,292,923 | $ | 2,246,193 | $ | 2,230,971 | $ | 2,206,877 | |||||||||||||||||||
Three Months Ended |
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June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
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Interest income | $ | 38,465 | $ | 37,215 | $ | 36,346 | $ | 35,459 | $ | 33,836 | |||||||||||||||||||
Interest expense | 21,619 | 20,606 | 19,404 | 18,235 | 16,738 | ||||||||||||||||||||||||
Net interest income | 16,846 | 16,609 | 16,942 | 17,224 | 17,098 | ||||||||||||||||||||||||
Provision for credit losses |
2,680 | 2,866 | 4,628 | 82 | 705 | ||||||||||||||||||||||||
Non-interest income | 9,244 | 7,984 | 8,117 | 8,086 | 9,124 | ||||||||||||||||||||||||
Non-interest expense | 19,018 | 18,174 | 19,703 | 20,018 | 19,615 | ||||||||||||||||||||||||
Income before income tax expense | 4,392 | 3,553 | 728 | 5,210 | 5,902 | ||||||||||||||||||||||||
Income tax expense | 1,066 | 877 | 157 | 1,205 | 1,257 | ||||||||||||||||||||||||
Net Income | $ | 3,326 | $ | 2,676 | $ | 571 | $ | 4,005 | $ | 4,645 | |||||||||||||||||||
Basic weighted average shares outstanding | 11,096 | 11,088 | 11,070 | 11,057 | 11,062 | ||||||||||||||||||||||||
Basic earnings per common share | $ | 0.30 | $ | 0.24 | $ | 0.05 | $ | 0.36 | $ | 0.42 | |||||||||||||||||||
Diluted weighted average shares outstanding | 11,150 | 11,201 | 11,206 | 11,363 | 11,304 | ||||||||||||||||||||||||
Diluted earnings per common share | $ | 0.30 | $ | 0.24 | $ | 0.05 | $ | 0.35 | $ | 0.41 |
Segment Information | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2024 |
Three Months Ended June 30, 2023 |
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(dollars in thousands) | Bank | Wealth | Mortgage | Total | Bank | Wealth | Mortgage | Total | |||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 16,784 | $ | 36 | $ | 26 | $ | 16,846 | $ | 17,102 | $ | (29) | $ | 25 | $ | 17,098 | |||||||||||||||||||||||||||||||
Provision for credit losses |
2,680 | — | — | 2,680 | 705 | — | — | 705 | |||||||||||||||||||||||||||||||||||||||
Net interest income after provision |
14,104 | 36 | 26 | 14,166 | 16,397 | (29) | 25 | 16,393 | |||||||||||||||||||||||||||||||||||||||
Non-interest income | 1,673 | 1,444 | 6,127 | 9,244 | 2,508 | 1,235 | 5,381 | 9,124 | |||||||||||||||||||||||||||||||||||||||
Non-interest expense | 12,606 | 804 | 5,608 | 19,018 | 12,325 | 889 | 6,401 | 19,615 | |||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes |
$ | 3,171 | $ | 676 | $ | 545 | $ | 4,392 | $ | 6,580 | $ | 317 | $ | (995) | $ | 5,902 | |||||||||||||||||||||||||||||||
Efficiency ratio | 68 | % | 54 | % | 91 | % | 73 | % | 63 | % | 74 | % | 118 | % | 75 | % | |||||||||||||||||||||||||||||||
Six Months Ended June 30, 2024 |
Six Months Ended June 30, 2023 |
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(dollars in thousands) | Bank | Wealth | Mortgage | Total | Bank | Wealth | Mortgage | Total | |||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 33,376 | $ | 30 | $ | 49 | $ | 33,455 | $ | 34,721 | $ | 3 | $ | 51 | $ | 34,775 | |||||||||||||||||||||||||||||||
Provision for credit losses |
5,546 | — | — | 5,546 | 2,104 | — | — | 2,104 | |||||||||||||||||||||||||||||||||||||||
Net interest income after provision |
27,830 | 30 | 49 | 27,909 | 32,617 | 3 | 51 | 32,671 | |||||||||||||||||||||||||||||||||||||||
Non-interest income | 3,550 | 2,760 | 10,918 | 17,228 | 3,938 | 2,431 | 9,393 | 15,762 | |||||||||||||||||||||||||||||||||||||||
Non-interest expense | 24,669 | 1,636 | 10,887 | 37,192 | 23,024 | 1,877 | 12,503 | 37,404 | |||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes |
$ | 6,711 | $ | 1,154 | $ | 80 | $ | 7,945 | $ | 13,531 | $ | 557 | $ | (3,059) | $ | 11,029 | |||||||||||||||||||||||||||||||
Efficiency ratio | 67 | % | 59 | % | 99 | % | 73 | % | 60 | % | 77 | % | 132 | % | 74 | % | |||||||||||||||||||||||||||||||
Pre-tax, Pre-provision Reconciliation |
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Three Months Ended | Six Months Ended |
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(Dollars in thousands, except per share data, Unaudited) |
June 30, 2024 |
March 31, 2024 |
June 30, 2023 |
June 30, 2024 |
June 30, 2023 |
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Income before income tax expense | $ | 4,392 | $ | 3,553 | $ | 5,902 | $ | 7,945 | $ | 11,029 | |||||||||||||||||||
Provision for credit losses | 2,680 | 2,866 | 705 | 5,546 | 2,104 | ||||||||||||||||||||||||
Pre-tax, pre-provision income | $ | 7,072 | $ | 6,419 | $ | 6,607 | $ | 13,491 | $ | 13,133 |
Pre-tax, Pre-provision Reconciliation |
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Three Months Ended | Six Months Ended |
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(Dollars in thousands, except per share data, Unaudited) |
June 30, 2024 |
March 31, 2024 |
June 30, 2023 |
June 30, 2024 |
June 30, 2023 |
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Bank | $ | 5,851 | $ | 6,406 | $ | 7,285 | $ | 12,257 | $ | 15,643 | |||||||||||||||||||
Wealth | 676 | 478 | 317 | 1,154 | 548 | ||||||||||||||||||||||||
Mortgage | 545 | (465) | (995) | 80 | (3,058) | ||||||||||||||||||||||||
Pre-tax, pre-provision income | $ | 7,072 | $ | 6,419 | $ | 6,607 | $ | 13,491 | $ | 13,133 |
Allowance For Credit Losses to Loans, Net of Fees and Costs, Excluding and Loans at Fair Value | |||||||||||||||||||||||||||||
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
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Allowance for credit losses (GAAP) |
$ | 21,703 | $ | 23,171 | $ | 22,107 | $ | 19,683 | $ | 20,242 | |||||||||||||||||||
Loans, net of fees and costs (GAAP) |
1,988,535 | 1,956,315 | 1,895,806 | 1,885,629 | 1,859,839 | ||||||||||||||||||||||||
Less: Loans fair valued |
(12,900) | (13,139) | (13,726) | (13,231) | (14,403) | ||||||||||||||||||||||||
Loans, net of fees and costs, excluding loans at fair value (non-GAAP) |
$ | 1,975,635 | $ | 1,943,176 | $ | 1,882,080 | $ | 1,872,398 | $ | 1,845,436 | |||||||||||||||||||
Allowance for credit losses to loans, net of fees and costs (GAAP) |
1.09 | % | 1.18 | % | 1.17 | % | 1.04 | % | 1.09 | % | |||||||||||||||||||
Allowance for credit losses to loans, net of fees and costs, excluding loans at fair value (non-GAAP) |
1.10 | % | 1.19 | % | 1.17 | % | 1.05 | % | 1.10 | % |
Tangible Common Equity Ratio Reconciliation - Corporation |
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June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
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Total stockholders' equity (GAAP) |
$ | 162,382 | $ | 159,936 | $ | 158,022 | $ | 155,114 | $ | 153,962 | |||||||||||||||||||
Less: Goodwill and intangible assets |
(3,768) | (3,819) | (3,870) | (3,921) | (3,972) | ||||||||||||||||||||||||
Tangible common equity (non-GAAP) |
158,614 | 156,117 | 154,152 | 151,193 | 149,990 | ||||||||||||||||||||||||
Total assets (GAAP) |
2,351,584 | 2,292,923 | 2,246,193 | 2,230,971 | 2,206,877 | ||||||||||||||||||||||||
Less: Goodwill and intangible assets | (3,768) | (3,819) | (3,870) | (3,921) | (3,972) | ||||||||||||||||||||||||
Tangible assets (non-GAAP) |
$ | 2,347,816 | $ | 2,289,104 | $ | 2,242,323 | $ | 2,227,050 | $ | 2,202,905 | |||||||||||||||||||
Tangible common equity to tangible assets ratio - Corporation (non-GAAP) |
6.76 | % | 6.82 | % | 6.87 | % | 6.79 | % | 6.81 | % |
Tangible Common Equity Ratio Reconciliation - Bank |
|||||||||||||||||||||||||||||
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
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Total stockholders' equity (GAAP) | $ | 211,308 | $ | 208,319 | $ | 204,132 | $ | 201,996 | $ | 192,209 | |||||||||||||||||||
Less: Goodwill and intangible assets | (3,768) | (3,819) | (3,870) | (3,921) | (3,972) | ||||||||||||||||||||||||
Tangible common equity (non-GAAP) | 207,540 | 204,500 | 200,262 | 198,075 | 188,237 | ||||||||||||||||||||||||
Total assets (GAAP) | 2,349,600 | 2,292,894 | 2,244,893 | 2,232,297 | 2,208,252 | ||||||||||||||||||||||||
Less: Goodwill and intangible assets | (3,768) | (3,819) | (3,870) | (3,921) | (3,972) | ||||||||||||||||||||||||
Tangible assets (non-GAAP) | $ | 2,345,832 | $ | 2,289,075 | $ | 2,241,023 | $ | 2,228,376 | $ | 2,204,280 | |||||||||||||||||||
Tangible common equity to tangible assets ratio - Bank (non-GAAP) | 8.85 | % | 8.93 | % | 8.94 | % | 8.89 | % | 8.54 | % | |||||||||||||||||||
Tangible Book Value Reconciliation | |||||||||||||||||||||||||||||
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
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Book value per common share | $ | 14.51 | $ | 14.30 | $ | 14.13 | $ | 13.88 | $ | 13.77 | |||||||||||||||||||
Less: Impact of goodwill /intangible assets | 0.34 | 0.34 | 0.35 | 0.35 | 0.35 | ||||||||||||||||||||||||
Tangible book value per common share | $ | 14.17 | $ | 13.96 | $ | 13.78 | $ | 13.53 | $ | 13.42 |