001-33003 | 20-5120010 | |
(Commission File Number) | (I.R.S. Employer Identification No.) |
2174 EastRidge Center, Eau Claire, Wisconsin | 54701 | |
(Address of Principal Executive Offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, $.01 par value per share | CZWI | NASDAQ Global Market SM |
CITIZENS COMMUNITY BANCORP, INC. | ||||
Date: October 28, 2019 | By: | /s/ James S. Broucek | ||
James S. Broucek | ||||
Chief Financial Officer |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2019 | June 30, 2019 | September 30, 2018 | September 30, 2019 | September 30, 2018 | |||||||||||
Ratios based on net income: | |||||||||||||||
Return on average assets (annualized) | 0.34 | % | 1.23 | % | 0.44 | % | 0.61 | % | 0.46 | % | |||||
Return on average equity (annualized) | 3.35 | % | 11.72 | % | 3.21 | % | 5.94 | % | 4.00 | % | |||||
Efficiency ratio (non-GAAP) | 85 | % | 61 | % | 77 | % | 75 | % | 80 | % | |||||
Net interest margin | 3.34 | % | 3.30 | % | 3.45 | % | 3.35 | % | 3.42 | % | |||||
Ratios based on net income as adjusted (non-GAAP): | |||||||||||||||
Return on average assets as adjusted2 (annualized) | 0.93 | % | 0.77 | % | 0.48 | % | 0.75 | % | 0.5 | % | |||||
Return on average equity as adjusted3 (annualized) | 9.22 | % | 7.27 | % | 3.45 | % | 7.23 | % | 4.35 | % | |||||
Efficiency ratio4 | 66 | % | 74 | % | 78 | % | 69 | % | 82 | % |
• | Total assets increased to $1.48 billion at September 30, 2019 from $1.35 billion at June 30, 2019. The increased asset base reflected the acquisition of assets from F&M. |
• | Loans receivable increased to $1.12 billion at September 30, 2019 from $1.02 billion at June 30, 2019. The loan growth of $108.1 million was due to the F&M acquisition of $130.3 million and originated commercial loan growth, partially offset by the paydown and sale of the Bank's unsecured purchased indirect loan portfolio and reductions in the Legacy loan portfolio consisting of originated indirect paper and one-to-four family loans. |
• | Book value per share increased to $13.13 at September 30, 2019 from $13.04 at June 30, 209. Tangible book value per share (non-GAAP)5 increased to $9.60 at September 30, 2019 from $9.56 at June 30, 2019, reflecting earnings, increased market value in the available for sale portfolio and intangible amortization, net of the intangibles created in the F&M acquisition. |
• | The net interest margin increased to 3.34% for the quarter ended September 30, 2019 from 3.30% the prior quarter. The increase was largely due to lower borrowing costs as management entered into lower cost FHLB callable debt in the quarter. The changes in the Company's net interest margin, along with the impact |
• | Loan loss provisions increased to $575,000 for the quarter ended September 30, 2019 from $325,000 for the quarter ended June 30, 2019. The provisions for each period were primarily due to continued new originated loan growth, charge-offs without specific reserves associated with the underlying loans ($157,000 in the third quarter compared to $48,000 in the second quarter) and in the third quarter, an approximately $150,000 increase in specific reserves primarily related to certain specific residential loans. |
• | Non-interest income increased to $3.6 million for the third quarter ended September 30, 2019 from $2.9 million for the second quarter of 2019, excluding the gain on the sale of a branch office in the second quarter of 2019. The relative increase in non-interest income in the third quarter reflects higher loan fees driven by commercial activity and gains on sale of mortgage loans driven by refinancing activities and an $94,000 incentive payment from a card provider due to increased debit card activity. Additionally, service charges on deposit accounts, interchange income and BOLI income (recorded in other non-interest income) all increased primarily due to the F&M acquisition. |
• | Total non-interest expense was $13.0 million for the third quarter of 2019, compared to $9.4 million in the prior quarter and $7.6 million for the quarter ended September 30, 2018. Total non-interest expense for the current quarter reflects $2.9 million in merger related expenses versus $206,000 in the second quarter of 2019 and $131,000 in the third quarter of 2018. Third quarter 2019 also includes a full quarter impact of operating expenses from the F&M acquisition of approximately $900,000. |
• | The third quarter ended September 30, 2019 was favorably impacted by the FDIC application of the Small Bank Assessment Credits to our current quarter deposit insurance invoice totaling $150,000. |
• | Nonperforming assets increased to $21.5 million at September 30, 2019 or 1.46% of total assets compared to $15.9 million at June 30, 2019 or 1.18% of total assets. Nonperforming assets related to F&M were $5.9 million. Classified assets increased to $39.9 million at September 30, 2019, from $32.6 million at June 30, 2019. Classified assets from the F&M acquisition were $7.5 million. |
Citizens Community Federal N.A. | Citizens Community Bancorp, Inc. | To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||
Tier 1 leverage ratio (to adjusted total assets) | 10.2% | 7.2% | 5.0% | |||
Tier 1 capital (to risk weighted assets) | 12.7% | 9.1% | 8.0% | |||
Common equity tier 1 capital (to risk weighted assets) | 12.7% | 9.1% | 6.5% | |||
Total capital (to risk weighted assets) | 13.5% | 11.1% | 10.0% |
September 30, 2019 (unaudited) | June 30, 2019 (unaudited) | December 31, 2018 (audited) | September 30, 2018 (audited) | |||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 52,276 | $ | 47,008 | $ | 45,778 | $ | 34,494 | ||||||||
Other interest bearing deposits | 5,245 | 5,980 | 7,460 | 7,180 | ||||||||||||
Securities available for sale "AFS" | 182,956 | 154,760 | 146,725 | 118,482 | ||||||||||||
Securities held to maturity "HTM" | 3,665 | 3,828 | 4,850 | 4,619 | ||||||||||||
Equity securities with readily determinable fair value | 241 | 177 | — | — | ||||||||||||
Non-marketable equity securities, at cost | 12,622 | 12,543 | 11,261 | 7,218 | ||||||||||||
Loans receivable | 1,124,378 | 1,019,957 | 992,556 | 759,247 | ||||||||||||
Allowance for loan losses | (9,177 | ) | (8,759 | ) | (7,604 | ) | (6,748 | ) | ||||||||
Loans receivable, net | 1,115,201 | 1,011,198 | 984,952 | 752,499 | ||||||||||||
Loans held for sale | 3,262 | 2,475 | 1,927 | 1,917 | ||||||||||||
Mortgage servicing rights | 4,245 | 4,319 | 4,486 | 1,840 | ||||||||||||
Office properties and equipment, net | 20,938 | 15,287 | 13,513 | 10,034 | ||||||||||||
Accrued interest receivable | 4,993 | 4,452 | 4,307 | 3,600 | ||||||||||||
Intangible assets | 7,999 | 6,828 | 7,501 | 4,805 | ||||||||||||
Goodwill | 31,841 | 31,474 | 31,474 | 10,444 | ||||||||||||
Foreclosed and repossessed assets, net | 1,373 | 1,387 | 2,570 | 2,768 | ||||||||||||
Bank owned life insurance | 22,895 | 18,022 | 17,792 | 11,661 | ||||||||||||
Escrow merger settlement proceeds | — | 20,555 | — | — | ||||||||||||
Other assets | 5,612 | 8,127 | 3,328 | 3,848 | ||||||||||||
TOTAL ASSETS | $ | 1,475,364 | $ | 1,348,420 | $ | 1,287,924 | $ | 975,409 | ||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||
Liabilities: | ||||||||||||||||
Deposits | $ | 1,161,750 | $ | 1,015,459 | $ | 1,007,512 | $ | 746,529 | ||||||||
Federal Home Loan Bank advances | 113,466 | 135,844 | 109,813 | 63,000 | ||||||||||||
Other borrowings | 44,545 | 44,551 | 24,647 | 24,619 | ||||||||||||
Other liabilities | 7,574 | 9,324 | 7,765 | 5,414 | ||||||||||||
Total liabilities | 1,327,335 | 1,205,178 | 1,149,737 | 839,562 | ||||||||||||
Stockholders’ equity: | ||||||||||||||||
Common stock— $0.01 par value, authorized 30,000,000; 11,270,710; 10,982,008; 10,953,512 and 10,913,853 shares issued and outstanding, respectively | 113 | 110 | 109 | 109 | ||||||||||||
Additional paid-in capital | 128,926 | 125,822 | 125,512 | 125,063 | ||||||||||||
Retained earnings | 19,348 | 18,114 | 15,264 | 14,003 | ||||||||||||
Unearned deferred compensation | (630 | ) | (757 | ) | (857 | ) | (622 | ) | ||||||||
Accumulated other comprehensive income (loss) | 272 | (47 | ) | (1,841 | ) | (2,706 | ) | |||||||||
Total stockholders’ equity | 148,029 | 143,242 | 138,187 | 135,847 | ||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,475,364 | $ | 1,348,420 | $ | 1,287,924 | $ | 975,409 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, 2019 | June 30, 2019 | September 30, 2018 | September 30, 2019 | September 30, 2018 | ||||||||||||||||
Interest and dividend income: | ||||||||||||||||||||
Interest and fees on loans | $ | 14,646 | $ | 12,976 | $ | 9,414 | $ | 40,036 | $ | 26,818 | ||||||||||
Interest on investments | 1,577 | 1,360 | 948 | 4,241 | 2,666 | |||||||||||||||
Total interest and dividend income | 16,223 | 14,336 | 10,362 | 44,277 | 29,484 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Interest on deposits | 3,371 | 2,926 | 1,659 | 8,890 | 4,341 | |||||||||||||||
Interest on FHLB borrowed funds | 639 | 913 | 323 | 2,213 | 1,049 | |||||||||||||||
Interest on other borrowed funds | 620 | 414 | 440 | 1,436 | 1,318 | |||||||||||||||
Total interest expense | 4,630 | 4,253 | 2,422 | 12,539 | 6,708 | |||||||||||||||
Net interest income before provision for loan losses | 11,593 | 10,083 | 7,940 | 31,738 | 22,776 | |||||||||||||||
Provision for loan losses | 575 | 325 | 450 | 2,125 | 1,200 | |||||||||||||||
Net interest income after provision for loan losses | 11,018 | 9,758 | 7,490 | 29,613 | 21,576 | |||||||||||||||
Non-interest income: | ||||||||||||||||||||
Service charges on deposit accounts | 625 | 581 | 489 | 1,756 | 1,332 | |||||||||||||||
Interchange income | 476 | 453 | 338 | 1,267 | 978 | |||||||||||||||
Loan servicing income | 714 | 634 | 368 | 1,902 | 1,051 | |||||||||||||||
Gain on sale of loans | 679 | 573 | 234 | 1,560 | 649 | |||||||||||||||
Loan fees and service charges | 471 | 261 | 164 | 860 | 367 | |||||||||||||||
Insurance commission income | 197 | 192 | 180 | 573 | 554 | |||||||||||||||
Gains (losses) on investment securities | 96 | 21 | — | 151 | (17 | ) | ||||||||||||||
Gain on sale of branch | — | 2,295 | — | 2,295 | — | |||||||||||||||
Other | 363 | 228 | 216 | 827 | 517 | |||||||||||||||
Total non-interest income | 3,621 | 5,238 | 1,989 | 11,191 | 5,431 | |||||||||||||||
Non-interest expense: | ||||||||||||||||||||
Compensation and benefits | 5,295 | 4,604 | 3,778 | 14,605 | 11,424 | |||||||||||||||
Occupancy | 905 | 866 | 776 | 2,725 | 2,270 | |||||||||||||||
Office | 599 | 528 | 468 | 1,649 | 1,311 | |||||||||||||||
Data processing | 1,092 | 874 | 771 | 2,953 | 2,224 | |||||||||||||||
Amortization of intangible assets | 412 | 346 | 161 | 1,085 | 483 | |||||||||||||||
Amortization of mortgage servicing rights | 325 | 306 | 85 | 822 | 245 | |||||||||||||||
Advertising, marketing and public relations | 315 | 456 | 265 | 974 | 596 | |||||||||||||||
FDIC premium assessment | 78 | 146 | 121 | 318 | 330 | |||||||||||||||
Professional services | 561 | 575 | 577 | 1,961 | 1,635 | |||||||||||||||
(Gains) losses on repossessed assets, net | (16 | ) | (90 | ) | 71 | (143 | ) | 521 | ||||||||||||
Other | 3,409 | 776 | 571 | 5,309 | 1,582 | |||||||||||||||
Total non-interest expense | 12,975 | 9,389 | 7,644 | 32,258 | 22,621 | |||||||||||||||
Income before provision for income taxes | 1,664 | 5,607 | 1,835 | 8,546 | 4,386 | |||||||||||||||
Provision for income taxes | 430 | 1,500 | 736 | 2,252 | 1,443 | |||||||||||||||
Net income attributable to common stockholders | $ | 1,234 | $ | 4,107 | $ | 1,099 | $ | 6,294 | $ | 2,943 | ||||||||||
Per share information: | ||||||||||||||||||||
Basic earnings | $ | 0.11 | $ | 0.37 | $ | 0.18 | $ | 0.57 | $ | 0.49 | ||||||||||
Diluted earnings | $ | 0.11 | $ | 0.37 | $ | 0.10 | $ | 0.57 | $ | 0.38 | ||||||||||
Cash dividends paid | $ | — | $ | — | $ | — | $ | 0.20 | $ | 0.20 | ||||||||||
Book value per share at end of period | $ | 13.13 | $ | 13.04 | $ | 12.45 | $ | 13.13 | $ | 12.45 | ||||||||||
Tangible book value per share at end of period (non-GAAP) | $ | 9.60 | $ | 9.56 | $ | 11.05 | $ | 9.60 | $ | 11.05 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, 2019 | June 30, 2019 | September 30, 2018 | September 30, 2019 | September 30, 2018 | ||||||||||||||||
GAAP earnings before income taxes | $ | 1,664 | $ | 5,607 | $ | 1,835 | $ | 8,546 | $ | 4,386 | ||||||||||
Merger related costs (1) | 2,911 | 206 | 131 | 3,776 | 369 | |||||||||||||||
Branch closure costs (2) | — | — | 2 | 15 | 19 | |||||||||||||||
Audit and Financial Reporting (3) | — | — | — | 358 | — | |||||||||||||||
Gain on sale of branch | — | (2,295 | ) | — | (2,295 | ) | — | |||||||||||||
Net income as adjusted before income taxes (4) | 4,575 | 3,518 | 1,968 | 10,400 | 4,774 | |||||||||||||||
Provision for income tax on net income as adjusted (5) | 1,180 | 943 | 789 | 2,746 | 1,571 | |||||||||||||||
Net income as adjusted after income taxes (non-GAAP) (4) | $ | 3,395 | $ | 2,575 | $ | 1,179 | $ | 7,654 | $ | 3,203 | ||||||||||
GAAP diluted earnings per share, net of tax | $ | 0.11 | $ | 0.37 | $ | 0.10 | $ | 0.57 | $ | 0.38 | ||||||||||
Merger related costs, net of tax (1) | 0.19 | 0.01 | 0.01 | 0.25 | 0.03 | |||||||||||||||
Branch closure costs, net of tax | — | — | — | — | — | |||||||||||||||
Audit and Financial Reporting | — | — | — | 0.02 | — | |||||||||||||||
Gain on sale of branch | — | (0.15 | ) | — | (0.15 | ) | — | |||||||||||||
Diluted earnings per share, as adjusted, net of tax (non-GAAP) | $ | 0.30 | $ | 0.23 | $ | 0.11 | $ | 0.69 | $ | 0.41 | ||||||||||
Average diluted shares outstanding | 11,276,005 | 10,994,470 | 10,950,980 | 11,068,227 | 7,811,655 |
September 30, 2019 and Three Months Ended | June 30, 2019 and Three Months Ended | December 31, 2018 and Three Months Ended | September 30, 2018 and Three Months Ended | |||||||||||||
Nonperforming assets: | ||||||||||||||||
Nonaccrual loans | ||||||||||||||||
One to four family | $ | 2,255 | $ | 2,298 | $ | 2,331 | $ | 1,939 | ||||||||
Commercial real estate | 6,324 | 1,732 | 808 | 499 | ||||||||||||
Agricultural real estate | 6,191 | 5,717 | 2,019 | 2,637 | ||||||||||||
Consumer non-real estate | 191 | 165 | 120 | 86 | ||||||||||||
Commercial non-real estate | 2,072 | 1,785 | 1,314 | 1,196 | ||||||||||||
Agricultural non-real estate | 1,989 | 1,915 | 762 | 853 | ||||||||||||
Total nonaccrual loans | $ | 19,022 | $ | 13,612 | $ | 7,354 | $ | 7,210 | ||||||||
Accruing loans past due 90 days or more | 1,099 | 880 | 736 | 1,117 | ||||||||||||
Total nonperforming loans ("NPLs") | 20,121 | 14,492 | 8,090 | 8,327 | ||||||||||||
Other real estate owned ("OREO") | 1,348 | 1,354 | 2,522 | 2,749 | ||||||||||||
Other collateral owned | 25 | 33 | 48 | 19 | ||||||||||||
Total nonperforming assets ("NPAs") | $ | 21,494 | $ | 15,879 | $ | 10,660 | $ | 11,095 | ||||||||
Troubled Debt Restructurings ("TDRs") | $ | 11,795 | $ | 10,000 | $ | 8,722 | $ | 8,418 | ||||||||
Nonaccrual TDRs | $ | 4,601 | $ | 4,101 | $ | 2,667 | $ | 2,687 | ||||||||
Average outstanding loan balance | $ | 1,143,252 | $ | 1,023,447 | $ | 921,951 | $ | 754,442 | ||||||||
Loans, end of period | $ | 1,124,378 | $ | 1,019,957 | $ | 992,556 | $ | 759,247 | ||||||||
Total assets, end of period | $ | 1,475,364 | $ | 1,348,420 | $ | 1,287,924 | $ | 975,409 | ||||||||
Allowance for loan losses ("ALL"), at beginning of period | $ | 8,759 | $ | 8,707 | $ | 6,748 | $ | 6,458 | ||||||||
Loans charged off: | ||||||||||||||||
Residential real estate | (133 | ) | (23 | ) | (43 | ) | (82 | ) | ||||||||
Commercial/Agricultural real estate | — | (225 | ) | — | — | |||||||||||
Consumer non-real estate | (46 | ) | (48 | ) | (79 | ) | (85 | ) | ||||||||
Commercial/Agricultural non-real estate | — | — | — | (47 | ) | |||||||||||
Total loans charged off | (179 | ) | (296 | ) | (122 | ) | (214 | ) | ||||||||
Recoveries of loans previously charged off: | ||||||||||||||||
Residential real estate | 1 | — | 4 | 28 | ||||||||||||
Commercial/Agricultural real estate | — | 3 | — | — | ||||||||||||
Consumer non-real estate | 21 | 20 | 24 | 25 | ||||||||||||
Commercial/Agricultural non-real estate | — | — | — | 1 | ||||||||||||
Total recoveries of loans previously charged off: | 22 | 23 | 28 | 54 | ||||||||||||
Net loans charged off ("NCOs") | (157 | ) | (273 | ) | (94 | ) | (160 | ) | ||||||||
Additions to ALL via provision for loan losses charged to operations | 575 | 325 | 950 | 450 | ||||||||||||
ALL, at end of period | $ | 9,177 | $ | 8,759 | $ | 7,604 | $ | 6,748 | ||||||||
Ratios: | ||||||||||||||||
ALL to NCOs (annualized) | 1,461.31 | % | 802.11 | % | 2,022.34 | % | 1,054.38 | % | ||||||||
NCOs (annualized) to average loans | 0.05 | % | 0.11 | % | 0.04 | % | 0.08 | % | ||||||||
ALL to total loans | 0.82 | % | 0.86 | % | 0.77 | % | 0.89 | % | ||||||||
NPLs to total loans | 1.79 | % | 1.42 | % | 0.82 | % | 1.10 | % | ||||||||
NPAs to total assets | 1.46 | % | 1.18 | % | 0.83 | % | 1.14 | % |
Quarter Ended | |||||||||||||||
September 30, 2019 | June 30, 2019 | December 31, 2018 | September 30, 2018 | ||||||||||||
Balance, beginning of period | $ | 13,612 | $ | 9,871 | $ | 7,210 | $ | 6,627 | |||||||
Additions | 1,493 | 7,405 | 906 | 2,030 | |||||||||||
Acquired nonaccrual loans | 5,898 | — | 941 | — | |||||||||||
Charge offs | (134 | ) | (262 | ) | (40 | ) | (68 | ) | |||||||
Transfers to OREO | (209 | ) | (236 | ) | (201 | ) | (400 | ) | |||||||
Return to accrual status | (53 | ) | (149 | ) | — | (93 | ) | ||||||||
Payments received | (1,539 | ) | (2,612 | ) | (1,429 | ) | (676 | ) | |||||||
Other, net | (46 | ) | (405 | ) | (33 | ) | (210 | ) | |||||||
Balance, end of period | $ | 19,022 | $ | 13,612 | $ | 7,354 | $ | 7,210 |
Quarter Ended | |||||||||||||||
September 30, 2019 | June 30, 2019 | December 31, 2018 | September 30, 2018 | ||||||||||||
Balance, beginning of period | $ | 1,354 | $ | 2,071 | $ | 2,749 | $ | 5,328 | |||||||
Loans transferred in | 209 | 236 | 201 | 400 | |||||||||||
Branch properties sales | — | — | — | (1,245 | ) | ||||||||||
Sales | (220 | ) | (958 | ) | (210 | ) | (1,762 | ) | |||||||
Write-downs | — | (23 | ) | — | (127 | ) | |||||||||
Other, net | 5 | 28 | (218 | ) | 155 | ||||||||||
Balance, end of period | $ | 1,348 | $ | 1,354 | $ | 2,522 | $ | 2,749 |
September 30, 2019 | June 30, 2019 | December 31, 2018 | September 30, 2018 | ||||||||||||||||||||||||
Number of Modifications | Recorded Investment | Number of Modifications | Recorded Investment | Number of Modifications | Recorded Investment | Number of Modifications | Recorded Investment | ||||||||||||||||||||
Troubled debt restructurings: Accrual Status | |||||||||||||||||||||||||||
Residential real estate | 39 | $ | 3,094 | 39 | $ | 3,137 | 34 | $ | 3,319 | 34 | $ | 3,495 | |||||||||||||||
Commercial/Agricultural real estate | 18 | 3,574 | 14 | 2,202 | 15 | 2,209 | 14 | 1,646 | |||||||||||||||||||
Consumer non-real estate | 8 | 74 | 11 | 82 | 13 | 99 | 14 | 109 | |||||||||||||||||||
Commercial/Agricultural non-real estate | 4 | 452 | 4 | 478 | 2 | 428 | 3 | 481 | |||||||||||||||||||
Total loans | 69 | $ | 7,194 | 68 | $ | 5,899 | 64 | $ | 6,055 | 65 | $ | 5,731 |
September 30, 2019 | June 30, 2019 | December 31, 2018 | September 30, 2018 | |||||||||||||
Community Banking Loan Portfolios: | ||||||||||||||||
Commercial/Agricultural real estate: | ||||||||||||||||
Commercial real estate | $ | 465,046 | $ | 374,441 | $ | 357,959 | $ | 216,703 | ||||||||
Agricultural real estate | 89,441 | 92,137 | 86,015 | 70,517 | ||||||||||||
Multi-family real estate | 87,758 | 83,423 | 69,400 | 48,061 | ||||||||||||
Construction and land development | 65,550 | 52,071 | 22,691 | 17,739 | ||||||||||||
Commercial/Agricultural non-real estate: | ||||||||||||||||
Commercial non-real estate | 127,232 | 107,754 | 112,427 | 76,254 | ||||||||||||
Agricultural non-real estate | 39,827 | 36,827 | 36,327 | 26,549 | ||||||||||||
Residential real estate: | ||||||||||||||||
Purchased HELOC loans | 10,120 | 11,125 | 12,883 | 13,729 | ||||||||||||
Consumer non-real estate: | ||||||||||||||||
Other consumer | 18,770 | 18,389 | 20,214 | 18,844 | ||||||||||||
Total Community Banking Loan Portfolios | 903,744 | 776,167 | 717,916 | 488,396 | ||||||||||||
Legacy Loan Portfolios: | ||||||||||||||||
Residential real estate: | ||||||||||||||||
One to four family | 188,070 | 191,890 | 209,926 | 196,052 | ||||||||||||
Consumer non-real estate: | ||||||||||||||||
Originated indirect paper | 42,894 | 47,391 | 56,585 | 60,991 | ||||||||||||
Purchased indirect paper | — | 11,155 | 15,006 | 17,254 | ||||||||||||
Total Legacy Loan Portfolios | 230,964 | 250,436 | 281,517 | 274,297 | ||||||||||||
Gross loans | $ | 1,134,708 | $ | 1,026,603 | $ | 999,433 | $ | 762,693 |
Loan Composition | September 30, 2019 | June 30, 2019 | December 31, 2018 | September 30, 2018 | ||||||||||||
Originated Loans: | ||||||||||||||||
Residential real estate: | ||||||||||||||||
One to four family | $ | 114,507 | $ | 117,585 | $ | 121,053 | $ | 122,797 | ||||||||
Purchased HELOC loans | 10,120 | 11,125 | 12,883 | 13,729 | ||||||||||||
Commercial/Agricultural real estate: | ||||||||||||||||
Commercial real estate | 244,809 | 239,051 | 200,875 | 168,319 | ||||||||||||
Agricultural real estate | 34,527 | 34,927 | 29,589 | 27,017 | ||||||||||||
Multi-family real estate | 69,556 | 75,664 | 61,574 | 44,767 | ||||||||||||
Construction and land development | 52,319 | 35,030 | 15,812 | 14,648 | ||||||||||||
Consumer non-real estate: | ||||||||||||||||
Originated indirect paper | 42,894 | 47,391 | 56,585 | 60,991 | ||||||||||||
Purchased indirect paper | — | 11,155 | 15,006 | 17,254 | ||||||||||||
Other Consumer | 15,718 | 15,229 | 15,553 | 15,991 | ||||||||||||
Commercial/Agricultural non-real estate: | ||||||||||||||||
Commercial non-real estate | 80,941 | 75,186 | 73,518 | 62,196 | ||||||||||||
Agricultural non-real estate | 22,057 | 21,776 | 17,341 | 17,514 | ||||||||||||
Total originated loans | $ | 687,448 | $ | 684,119 | $ | 619,789 | $ | 565,223 | ||||||||
Acquired Loans: | ||||||||||||||||
Residential real estate: | ||||||||||||||||
One to four family | $ | 73,563 | $ | 74,305 | $ | 88,873 | $ | 73,255 | ||||||||
Commercial/Agricultural real estate: | ||||||||||||||||
Commercial real estate | 220,237 | 135,390 | 157,084 | 48,384 | ||||||||||||
Agricultural real estate | 54,914 | 57,210 | 56,426 | 43,500 | ||||||||||||
Multi-family real estate | 18,202 | 7,759 | 7,826 | 3,294 | ||||||||||||
Construction and land development | 13,231 | 17,041 | 6,879 | 3,091 | ||||||||||||
Consumer non-real estate: | ||||||||||||||||
Other Consumer | 3,052 | 3,160 | 4,661 | 2,853 | ||||||||||||
Commercial/Agricultural non-real estate: | ||||||||||||||||
Commercial non-real estate | 46,291 | 32,568 | 38,909 | 14,058 | ||||||||||||
Agricultural non-real estate | 17,770 | 15,051 | 18,986 | 9,035 | ||||||||||||
Total acquired loans | $ | 447,260 | $ | 342,484 | $ | 379,644 | $ | 197,470 | ||||||||
Total Loans: | ||||||||||||||||
Residential real estate: | ||||||||||||||||
One to four family | $ | 188,070 | $ | 191,890 | $ | 209,926 | $ | 196,052 | ||||||||
Purchased HELOC loans | 10,120 | 11,125 | 12,883 | 13,729 | ||||||||||||
Commercial/Agricultural real estate: | ||||||||||||||||
Commercial real estate | 465,046 | 374,441 | 357,959 | 216,703 | ||||||||||||
Agricultural real estate | 89,441 | 92,137 | 86,015 | 70,517 | ||||||||||||
Multi-family real estate | 87,758 | 83,423 | 69,400 | 48,061 | ||||||||||||
Construction and land development | 65,550 | 52,071 | 22,691 | 17,739 | ||||||||||||
Consumer non-real estate: | ||||||||||||||||
Originated indirect paper | 42,894 | 47,391 | 56,585 | 60,991 | ||||||||||||
Purchased indirect paper | — | 11,155 | 15,006 | 17,254 | ||||||||||||
Other Consumer | 18,770 | 18,389 | 20,214 | 18,844 | ||||||||||||
Commercial/Agricultural non-real estate: | ||||||||||||||||
Commercial non-real estate | 127,232 | 107,754 | 112,427 | 76,254 | ||||||||||||
Agricultural non-real estate | 39,827 | 36,827 | 36,327 | 26,549 | ||||||||||||
Gross loans | $ | 1,134,708 | $ | 1,026,603 | $ | 999,433 | $ | 762,693 | ||||||||
Unearned net deferred fees and costs and loans in process | (158 | ) | 98 | 409 | 557 | |||||||||||
Unamortized discount on acquired loans | (10,172 | ) | (6,744 | ) | (7,286 | ) | (4,003 | ) | ||||||||
Total loans receivable | $ | 1,124,378 | $ | 1,019,957 | $ | 992,556 | $ | 759,247 |
September 30, 2019 | June 30, 2019 | December 31, 2018 | September 30, 2018 | |||||||||||||
Non-interest bearing demand deposits | $ | 174,202 | $ | 140,130 | $ | 155,405 | $ | 87,495 | ||||||||
Interest bearing demand deposits | 209,644 | 180,001 | 169,310 | 139,276 | ||||||||||||
Savings accounts | 165,419 | 148,005 | 192,310 | 97,329 | ||||||||||||
Money market accounts | 193,654 | 155,964 | 126,021 | 109,314 | ||||||||||||
Certificate accounts | 418,831 | 391,359 | 364,466 | 313,115 | ||||||||||||
Total deposits | $ | 1,161,750 | $ | 1,015,459 | $ | 1,007,512 | $ | 746,529 |
Three months ended September 30, 2019 | Three months ended June 30, 2019 | Three months ended September 30, 2018 | |||||||||||||||||||||||||||||||
Average Balance | Interest Income/ Expense | Average Yield/ Rate (1) | Average Balance | Interest Income/ Expense | Average Yield/ Rate (1) | Average Balance | Interest Income/ Expense | Average Yield/ Rate (1) | |||||||||||||||||||||||||
Average interest earning assets: | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 32,376 | $ | 203 | 2.49 | % | $ | 30,076 | $ | 171 | 2.28 | % | $ | 24,468 | $ | 117 | 1.90 | % | |||||||||||||||
Loans receivable | 1,143,252 | 14,646 | 5.08 | % | 1,023,447 | 12,976 | 5.09 | % | 754,442 | 9,414 | 4.95 | % | |||||||||||||||||||||
Interest bearing deposits | 5,577 | 34 | 2.42 | % | 5,967 | 35 | 2.35 | % | 7,971 | 42 | 2.09 | % | |||||||||||||||||||||
Investment securities (1) | 185,921 | 1,174 | 2.56 | % | 158,991 | 996 | 2.60 | % | 124,991 | 674 | 2.30 | % | |||||||||||||||||||||
Non-marketable equity securities, at cost | 13,072 | 166 | 5.04 | % | 12,114 | 158 | 5.23 | % | 7,581 | 115 | 6.02 | % | |||||||||||||||||||||
Total interest earning assets (1) | $ | 1,380,198 | $ | 16,223 | 4.67 | % | $ | 1,230,595 | $ | 14,336 | 4.68 | % | $ | 919,453 | $ | 10,362 | 4.49 | % | |||||||||||||||
Average interest bearing liabilities: | |||||||||||||||||||||||||||||||||
Savings accounts | $ | 158,967 | $ | 155 | 0.39 | % | $ | 147,456 | $ | 149 | 0.41 | % | $ | 93,551 | $ | 59 | 0.25 | % | |||||||||||||||
Demand deposits | 219,955 | 550 | 0.99 | % | 191,858 | 383 | 0.80 | % | 146,372 | 142 | 0.38 | % | |||||||||||||||||||||
Money market accounts | 200,647 | 593 | 1.17 | % | 164,402 | 448 | 1.09 | % | 116,597 | 213 | 0.72 | % | |||||||||||||||||||||
CD’s | 381,331 | 1,870 | 1.95 | % | 336,253 | 1,765 | 2.11 | % | 277,125 | 1,145 | 1.64 | % | |||||||||||||||||||||
IRA’s | 44,184 | 203 | 1.82 | % | 40,688 | 181 | 1.78 | % | 33,029 | 100 | 1.20 | % | |||||||||||||||||||||
Total deposits | $ | 1,005,084 | $ | 3,371 | 1.33 | % | $ | 880,657 | $ | 2,926 | 1.33 | % | $ | 666,674 | $ | 1,659 | 0.99 | % | |||||||||||||||
FHLB advances and other borrowings | 169,908 | 1,259 | 2.94 | % | 165,733 | 1,327 | 3.21 | % | 96,448 | 763 | 3.14 | % | |||||||||||||||||||||
Total interest bearing liabilities | $ | 1,174,992 | $ | 4,630 | 1.56 | % | $ | 1,046,390 | $ | 4,253 | 1.63 | % | $ | 763,122 | $ | 2,422 | 1.26 | % | |||||||||||||||
Net interest income | $ | 11,593 | $ | 10,083 | $ | 7,940 | |||||||||||||||||||||||||||
Interest rate spread | 3.11 | % | 3.05 | % | 3.23 | % | |||||||||||||||||||||||||||
Net interest margin (1) | 3.34 | % | 3.30 | % | 3.45 | % | |||||||||||||||||||||||||||
Average interest earning assets to average interest bearing liabilities | 1.18 | 1.18 | 1.20 |
Nine months ended September 30, 2019 | Nine months ended September 30, 2018 | |||||||||||||||||||||
Average Balance | Interest Income/ Expense | Average Yield/ Rate (1) | Average Balance | Interest Income/ Expense | Average Yield/ Rate (1) | |||||||||||||||||
Average interest earning assets: | ||||||||||||||||||||||
Cash and cash equivalents | $ | 29,489 | $ | 542 | 2.46 | % | $ | 23,814 | $ | 240 | 1.35 | % | ||||||||||
Loans receivable | 1,054,492 | 40,036 | 5.08 | % | 736,478 | 26,818 | 4.87 | % | ||||||||||||||
Interest bearing deposits | 6,153 | 107 | 2.33 | % | 7,890 | 117 | 1.98 | % | ||||||||||||||
Investment securities (1) | 167,023 | 3,119 | 2.58 | % | 121,216 | 1,996 | 2.38 | % | ||||||||||||||
Non-marketable equity securities, at cost | 11,853 | 473 | 5.34 | % | 7,915 | 313 | 5.29 | % | ||||||||||||||
Total interest earning assets (1) | $ | 1,269,010 | $ | 44,277 | 4.68 | % | $ | 897,313 | $ | 29,484 | 4.42 | % | ||||||||||
Average interest bearing liabilities: | ||||||||||||||||||||||
Savings accounts | $ | 156,851 | $ | 479 | 0.41 | % | $ | 94,263 | $ | 140 | 0.20 | % | ||||||||||
Demand deposits | 200,387 | 1,288 | 0.86 | % | 150,023 | 385 | 0.34 | % | ||||||||||||||
Money market accounts | 172,671 | 1,423 | 1.10 | % | 116,948 | 570 | 0.65 | % | ||||||||||||||
CD’s | 348,139 | 5,163 | 1.98 | % | 271,352 | 2,968 | 1.46 | % | ||||||||||||||
IRA’s | 41,576 | 537 | 1.73 | % | 33,202 | 278 | 1.12 | % | ||||||||||||||
Total deposits | $ | 919,624 | $ | 8,890 | 1.29 | % | $ | 665,788 | $ | 4,341 | 0.87 | % | ||||||||||
FHLB advances and other borrowings | 153,960 | 3,649 | 3.17 | % | 109,628 | 2,367 | 2.89 | % | ||||||||||||||
Total interest bearing liabilities | $ | 1,073,584 | $ | 12,539 | 1.56 | % | $ | 775,416 | $ | 6,708 | 1.16 | % | ||||||||||
Net interest income | $ | 31,738 | $ | 22,776 | ||||||||||||||||||
Interest rate spread | 3.12 | % | 3.26 | % | ||||||||||||||||||
Net interest margin (1) | 3.35 | % | 3.42 | % | ||||||||||||||||||
Average interest earning assets to average interest bearing liabilities | 1.18 | 1.16 |
September 30, 2019 | June 30, 2019 | December 31, 2018 | September 30, 2018 | To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||
Tier 1 leverage ratio (to adjusted total assets) | 10.2% | 9.7% | 9.7% | 9.2% | 5.0% | |||||
Tier 1 capital (to risk weighted assets) | 12.7% | 12.2% | 11.9% | 12.2% | 8.0% | |||||
Common equity tier 1 capital (to risk weighted assets) | 12.7% | 12.2% | 11.9% | 12.2% | 6.5% | |||||
Total capital (to risk weighted assets) | 13.5% | 13.1% | 12.7% | 13.1% | 10.0% |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, 2019 | June 30, 2019 | September 30, 2018 | September 30, 2019 | September 30, 2018 | ||||||||||||||||
GAAP earnings after income taxes | $ | 1,234 | $ | 4,107 | $ | 1,099 | $ | 6,294 | $ | 2,943 | ||||||||||
Net income as adjusted after income taxes (non-GAAP) (1) | $ | 3,395 | $ | 2,575 | $ | 1,179 | $ | 7,654 | $ | 3,203 | ||||||||||
Average assets | 1,454,455 | 1,334,860 | 981,181 | 1,368,430 | 862,475 | |||||||||||||||
Return on average assets (annualized) | 0.34 | % | 1.23 | % | 0.44 | % | 0.61 | % | 0.46 | % | ||||||||||
Return on average assets as adjusted (non-GAAP) (annualized) | 0.93 | % | 0.77 | % | 0.48 | % | 0.75 | % | 0.50 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, 2019 | June 30, 2019 | September 30, 2018 | September 30, 2019 | September 30, 2018 | ||||||||||||||||
GAAP earnings after income taxes | $ | 1,234 | $ | 4,107 | $ | 1,099 | $ | 6,294 | $ | 2,943 | ||||||||||
Net income as adjusted after income taxes (non-GAAP) (1) | $ | 3,395 | $ | 2,575 | $ | 1,179 | $ | 7,654 | $ | 3,203 | ||||||||||
Average equity | 146,116 | 140,561 | 135,670 | 141,608 | 98,452 | |||||||||||||||
Return on average equity (annualized) | 3.35 | % | 11.72 | % | 3.21 | % | 5.94 | % | 4.00 | % | ||||||||||
Return on average equity as adjusted (non-GAAP) (annualized) | 9.22 | % | 7.27 | % | 3.45 | % | 7.23 | % | 4.35 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, 2019 | June 30, 2019 | September 30, 2018 | September 30, 2019 | September 30, 2018 | ||||||||||||||||
Non-interest expense (GAAP) | $ | 12,975 | $ | 9,389 | $ | 7,644 | $ | 32,258 | $ | 22,621 | ||||||||||
Merger related Costs (1) | (2,911 | ) | 206 | 131 | (3,776 | ) | 369 | |||||||||||||
Branch Closure Costs (1) | — | — | 2 | (15 | ) | 19 | ||||||||||||||
Audit and financial reporting (1) | — | — | — | (358 | ) | — | ||||||||||||||
Non-interest expense as adjusted (non-GAAP) | 10,064 | 9,595 | 7,777 | 28,109 | 23,009 | |||||||||||||||
Non-interest income | 3,621 | 5,238 | 1,989 | 11,191 | 5,431 | |||||||||||||||
Net interest margin | 11,593 | 10,083 | 7,940 | 31,738 | 22,776 | |||||||||||||||
Efficiency ratio denominator (GAAP) | 15,214 | 15,321 | 9,929 | 42,929 | 28,207 | |||||||||||||||
Gain on sale of branch (1) | — | (2,295 | ) | — | (2,295 | ) | — | |||||||||||||
Efficiency ratio denominator (non-GAAP) | 15,214 | 13,026 | 9,929 | 40,634 | 28,207 | |||||||||||||||
Efficiency ratio (GAAP) | 85 | % | 61 | % | 77 | % | 75 | % | 80 | % | ||||||||||
Efficiency ratio (non-GAAP) | 66 | % | 74 | % | 78 | % | 69 | % | 82 | % |
Tangible book value per share at end of period | September 30, 2019 | June 30, 2019 | December 31, 2018 | September 30, 2018 | ||||||||||||
Total stockholders' equity | $ | 148,029 | $ | 143,242 | $ | 138,187 | $ | 135,847 | ||||||||
Less: Goodwill | (31,841 | ) | (31,474 | ) | (31,474 | ) | (10,444 | ) | ||||||||
Less: Intangible assets | (7,999 | ) | (6,828 | ) | (7,501 | ) | (4,805 | ) | ||||||||
Tangible common equity (non-GAAP) | $ | 108,189 | $ | 104,940 | $ | 99,212 | $ | 120,598 | ||||||||
Ending common shares outstanding | 11,270,710 | 10,982,008 | 10,953,512 | 10,913,853 | ||||||||||||
Book value per share | $ | 13.13 | $ | 13.04 | $ | 12.62 | $ | 12.45 | ||||||||
Tangible book value per share (non-GAAP) | $ | 9.60 | $ | 9.56 | $ | 9.06 | $ | 11.05 |
Tangible common equity as a percent of tangible assets at end of period | September 30, 2019 | June 30, 2019 | December 31, 2018 | September 30, 2018 | ||||||||||||
Total stockholders' equity | $ | 148,029 | $ | 143,242 | $ | 138,187 | $ | 135,847 | ||||||||
Less: Goodwill | (31,841 | ) | (31,474 | ) | (31,474 | ) | (10,444 | ) | ||||||||
Less: Intangible assets | (7,999 | ) | (6,828 | ) | (7,501 | ) | (4,805 | ) | ||||||||
Tangible common equity (non-GAAP) | $ | 108,189 | $ | 104,940 | $ | 99,212 | $ | 120,598 | ||||||||
Total Assets | $ | 1,475,364 | $ | 1,348,420 | $ | 1,287,924 | $ | 975,409 | ||||||||
Less: Goodwill | (31,841 | ) | (31,474 | ) | (31,474 | ) | (10,444 | ) | ||||||||
Less: Intangible assets | (7,999 | ) | (6,828 | ) | (7,501 | ) | (4,805 | ) | ||||||||
Tangible Assets (non-GAAP) | $ | 1,435,524 | $ | 1,310,118 | $ | 1,248,949 | $ | 960,160 | ||||||||
Total stockholders' equity to total assets ratio | 10.03 | % | 10.62 | % | 10.73 | % | 13.93 | % | ||||||||
Tangible common equity as a percent of tangible assets (non-GAAP) | 7.54 | % | 8.01 | % | 7.94 | % | 12.56 | % |
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