Michigan (State or other jurisdiction of incorporation or organization) | 71-1015624 (I.R.S. Employer Identification No.) |
32991 Hamilton Court Farmington Hills, MI (Address of principal executive offices) | 48334 (Zip code) |
Exhibit No. | Description | |
99.1 |
Date: May 15, 2018 | ||
LEVEL ONE BANCORP, INC. | ||
By: | /s/ David C. Walker | |
Name: | David C. Walker | |
Title: | Executive Vice President and Chief Financial Officer |
• | Net income was $3.2 million, or $0.47 per diluted share, for the three months ended March 31, 2018 |
• | Pre-tax income increased 17.23% to $3.8 million, compared to $3.3 million in the preceding quarter |
• | Net interest margin was 4.03% compared to 4.01% in the preceding quarter and 4.34% in the first quarter of 2017 |
• | Annualized return on average assets was 1.00%, compared to 0.96% in the first quarter of 2017 |
• | Annualized return on average equity was 11.64%, compared to 11.28% in the first quarter of 2017 |
• | Total assets increased 11.19% to $1.30 billion at March 31, 2018, compared to $1.17 billion at March 31, 2017 |
• | Total deposits increased 15.08% to $1.11 billion at March 31, 2018, compared to $966.9 million at March 31, 2017 |
• | Total loans increased 9.40% to $1.05 billion at March 31, 2018, compared to $961.0 million at March 31, 2017 |
• | Book value per share increased 7.63% to $16.78 per share compared to $15.59 per share at March 31, 2017 |
• | Tangible book value per share increased 9.12% to $15.27 per share compared to $13.99 per share at March 31, 2017 |
Media Contact: | Investor Relations Contact: |
Nicole Ransom | Peter Root |
(248) 538-2183 | (248) 538-2186 |
SUMMARY CONSOLIDATED FINANCIAL INFORMATION | |||||||||||
2018 | 2017 | 2017 | |||||||||
(Dollars in thousands, except per share data) | 1st Qtr | 4th Qtr | 1st Qtr | ||||||||
Earnings Summary | |||||||||||
Interest income | $ | 14,774 | $ | 14,378 | $ | 13,447 | |||||
Interest expense | 2,647 | 2,374 | 1,703 | ||||||||
Net interest income | 12,127 | 12,004 | 11,744 | ||||||||
Provision for loan losses | 554 | 956 | 198 | ||||||||
Noninterest income | 1,372 | 1,394 | 1,380 | ||||||||
Noninterest expense | 9,135 | 9,193 | 8,677 | ||||||||
Income before income taxes | 3,810 | 3,250 | 4,249 | ||||||||
Income tax provision | 642 | 2,317 | 1,497 | ||||||||
Net income | 3,168 | 933 | 2,752 | ||||||||
Per Share Data | |||||||||||
Basic earnings per common share | $ | 0.48 | $ | 0.15 | $ | 0.43 | |||||
Diluted earnings per common share | 0.47 | 0.14 | 0.42 | ||||||||
Book value per common share | 16.79 | 16.78 | 15.59 | ||||||||
Tangible book value per share (1) | 15.27 | 15.21 | 13.99 | ||||||||
Shares outstanding (in thousands) | 6,585 | 6,435 | 6,387 | ||||||||
Average basic common shares (in thousands) | 6,539 | 6,403 | 6,368 | ||||||||
Average diluted common shares (in thousands) | 6,699 | 6,630 | 6,603 | ||||||||
Selected Period End Balances | |||||||||||
Total assets | $ | 1,300,629 | $ | 1,301,291 | $ | 1,169,759 | |||||
Securities available-for-sale | 160,349 | 150,969 | 108,497 | ||||||||
Total loans | 1,051,354 | 1,034,923 | 960,990 | ||||||||
Total deposits | 1,112,644 | 1,120,382 | 966,858 | ||||||||
Total liabilities | 1,190,106 | 1,193,331 | 1,070,160 | ||||||||
Total shareholders' equity | 110,523 | 107,960 | 99,599 | ||||||||
Tangible shareholders' equity (1) | 100,524 | 97,906 | 89,369 | ||||||||
Performance and Capital Ratios | |||||||||||
Return on average assets | 1.00 | % | 0.29 | % | 0.96 | % | |||||
Return on average equity | 11.64 | 3.40 | 11.28 | ||||||||
Net interest margin (fully taxable equivalent) (2) | 4.03 | 4.01 | 4.34 | ||||||||
Total shareholders' equity to total assets | 8.50 | 8.30 | 8.51 | ||||||||
Tangible equity to tangible assets (1) | 7.79 | 7.58 | 7.71 | ||||||||
Common equity tier 1 capital | 9.47 | 9.10 | 8.92 | ||||||||
Tier 1 leverage ratio | 8.15 | 7.92 | 7.89 | ||||||||
Tier 1 risk-based capital | 9.47 | 9.10 | 8.92 | ||||||||
Total risk-based capital | 11.87 | 11.55 | 11.48 | ||||||||
Asset Quality Ratios: | |||||||||||
Net charge-offs to average loans | 0.29 | % | 0.35 | % | 0.02 | % | |||||
Nonperforming assets as a percentage of total assets | 1.00 | 1.13 | 1.40 | ||||||||
Nonperforming loans as a percent of total loans | 1.23 | 1.36 | 1.65 | ||||||||
Allowance for loan losses as a percentage of period-end loans | 1.09 | 1.13 | 1.17 | ||||||||
Allowance for loan losses as a percentage of nonperforming loans | 88.67 | 83.38 | 71.04 | ||||||||
Allowance for loan losses as a percentage of nonperforming loans, excluding allowance allocated to loans accounted for under ASC 310-30 | 80.36 | 75.68 | 65.70 |
Level One Bancorp, Inc. | |||||||||||
Reconciliation of Non-GAAP Financial Measures | |||||||||||
(Unaudited) | |||||||||||
2018 | 2017 | 2017 | |||||||||
(Dollars in thousands, except per share data) | 1st Qtr | 4th Qtr | 1st Qtr | ||||||||
Total shareholders' equity | $ | 110,523 | $ | 107,960 | $ | 99,599 | |||||
Less: | |||||||||||
Goodwill | 9,387 | 9,387 | 9,387 | ||||||||
Core deposit intangibles | 612 | 667 | 843 | ||||||||
Tangible shareholders' equity | $ | 100,524 | $ | 97,906 | $ | 89,369 | |||||
Shares outstanding (in thousands) | 6,585 | 6,435 | 6,387 | ||||||||
Tangible book value per share | $ | 15.27 | $ | 15.21 | $ | 13.99 | |||||
Total assets | $ | 1,300,629 | $ | 1,301,291 | $ | 1,169,759 | |||||
Less: | |||||||||||
Goodwill | 9,387 | 9,387 | 9,387 | ||||||||
Core deposit intangibles | 612 | 667 | 843 | ||||||||
Tangible assets | $ | 1,290,630 | $ | 1,291,237 | $ | 1,159,529 | |||||
Tangible equity to tangible assets | 7.79 | % | 7.58 | % | 7.71 | % |
Level One Bancorp, Inc. | |||||||||||
Consolidated Balance Sheets | |||||||||||
(Unaudited) | |||||||||||
March 31, | December 31, | March 31, | |||||||||
(Dollars in thousands, except share data) | 2018 | 2017 | 2017 | ||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 39,882 | $ | 63,661 | $ | 52,895 | |||||
Securities available-for-sale | 160,349 | 150,969 | 108,497 | ||||||||
Federal Home Loan Bank stock | 8,303 | 8,303 | 8,303 | ||||||||
Mortgage loans held for sale, at fair value | 1,871 | 4,548 | 1,346 | ||||||||
Loans: | |||||||||||
Originated loans | 946,179 | 920,895 | 818,101 | ||||||||
Acquired loans | 105,175 | 114,028 | 142,889 | ||||||||
Total loans | 1,051,354 | 1,034,923 | 960,990 | ||||||||
Less: Allowance for loan losses | (11,506) | (11,713) | (11,239) | ||||||||
Net loans | 1,039,848 | 1,023,210 | 949,751 | ||||||||
Premises and equipment, net | 13,282 | 13,435 | 15,568 | ||||||||
Goodwill | 9,387 | 9,387 | 9,387 | ||||||||
Other intangible assets, net | 612 | 667 | 843 | ||||||||
Bank-owned life insurance | 11,622 | 11,542 | 11,294 | ||||||||
Income tax benefit | 3,026 | 3,102 | 3,836 | ||||||||
Other assets | 12,447 | 12,467 | 8,039 | ||||||||
Total assets | $ | 1,300,629 | $ | 1,301,291 | $ | 1,169,759 | |||||
Liabilities | |||||||||||
Deposits: | |||||||||||
Noninterest-bearing demand deposits | $ | 298,917 | $ | 324,923 | $ | 271,216 | |||||
Interest-bearing demand deposits | 68,479 | 62,644 | 56,981 | ||||||||
Money market and savings deposits | 278,042 | 289,363 | 294,730 | ||||||||
Time deposits | 467,206 | 443,452 | 343,931 | ||||||||
Total deposits | 1,112,644 | 1,120,382 | 966,858 | ||||||||
Borrowings | 52,783 | 47,833 | 70,861 | ||||||||
Subordinated notes | 14,853 | 14,844 | 24,300 | ||||||||
Other liabilities | 9,826 | 10,272 | 8,141 | ||||||||
Total liabilities | 1,190,106 | 1,193,331 | 1,070,160 | ||||||||
Shareholders' equity | |||||||||||
Common stock: | |||||||||||
Authorized - 20,000,000 shares at 3/31/2018, 12/31/2017 and 3/31/2017 | |||||||||||
Issued and outstanding - 6,584,676 shares at 3/31/2018, 6,435,461 shares at 12/31/2017 and 6,387,209 shares at 3/31/2017 | 60,886 | 59,511 | 58,503 | ||||||||
Retained earnings | 52,568 | 49,232 | 42,143 | ||||||||
Accumulated other comprehensive loss, net of tax | (2,931) | (783) | (1,047) | ||||||||
Total shareholders' equity | 110,523 | 107,960 | 99,599 | ||||||||
Total liabilities and shareholders' equity | $ | 1,300,629 | $ | 1,301,291 | $ | 1,169,759 |
Level One Bancorp, Inc. | |||||||
Consolidated Statements of Income | |||||||
(Unaudited) | |||||||
Three months ended March 31, | |||||||
(In thousands, except per share data) | 2018 | 2017 | |||||
Interest income | |||||||
Originated loans, including fees | $ | 11,178 | $ | 9,354 | |||
Acquired loans, including fees | 2,426 | 3,393 | |||||
Securities: | |||||||
Taxable | 574 | 414 | |||||
Tax-exempt | 351 | 171 | |||||
Federal funds sold and other | 245 | 115 | |||||
Total interest income | 14,774 | 13,447 | |||||
Interest Expense | |||||||
Deposits | 2,178 | 1,277 | |||||
Borrowed funds | 219 | 176 | |||||
Subordinated notes | 250 | 250 | |||||
Total interest expense | 2,647 | 1,703 | |||||
Net interest income | 12,127 | 11,744 | |||||
Provision for loan losses | 554 | 198 | |||||
Net interest income after provision for loan losses | 11,573 | 11,546 | |||||
Noninterest income | |||||||
Service charges on deposits | 642 | 580 | |||||
Net gain on sale of residential mortgage loans | 236 | 299 | |||||
Net gain on sale of commercial loans | - | 146 | |||||
Other charges and fees | 494 | 355 | |||||
Total noninterest income | 1,372 | 1,380 | |||||
Noninterest expense | |||||||
Salary and employee benefits | 5,956 | 5,271 | |||||
Occupancy and equipment expense | 1,046 | 1,012 | |||||
Professional service fees | 266 | 540 | |||||
Marketing expense | 142 | 247 | |||||
Printing and supplies expense | 104 | 113 | |||||
Data processing expense | 436 | 413 | |||||
Other expense | 1,185 | 1,081 | |||||
Total noninterest expense | 9,135 | 8,677 | |||||
Income before income taxes | 3,810 | 4,249 | |||||
Income tax provision | 642 | 1,497 | |||||
Net income | $ | 3,168 | $ | 2,752 | |||
Earnings per common share: | |||||||
Basic | $ | 0.48 | $ | 0.43 | |||
Diluted | $ | 0.47 | $ | 0.42 | |||
Average common shares outstanding - basic | 6,539 | 6,368 | |||||
Average common shares outstanding - diluted | 6,699 | 6,603 |
Level One Bancorp, Inc. | ||||||||||||||||||||||||||
Net Interest Income and Net Interest Margin | ||||||||||||||||||||||||||
(Unaudited) | For the three months ended, | |||||||||||||||||||||||||
March 31, 2018 | December 31, 2017 | March 31, 2017 | ||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest (1) | Average Rate (2) | Average Balance | Interest (1) | Average Rate (2) | Average Balance | Interest (1) | Average Rate (2) | |||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||
Gross loans (3) | $ | 1,037,045 | $ | 13,604 | 5.32 | % | $ | 1,010,229 | $ | 13,337 | 5.24 | % | $ | 961,479 | $ | 12,747 | 5.38 | % | ||||||||
Investment securities (4): | ||||||||||||||||||||||||||
Taxable | 102,135 | 574 | 2.28 | 98,045 | 508 | 2.06 | 78,464 | 414 | 2.14 | |||||||||||||||||
Tax-exempt | 54,996 | 351 | 3.16 | 50,568 | 314 | 3.58 | 28,705 | 171 | 3.53 | |||||||||||||||||
Interest earning cash balances | 27,090 | 106 | 1.59 | 36,953 | 125 | 1.34 | 27,439 | 59 | 0.87 | |||||||||||||||||
Federal Home Loan Bank Stock | 8,303 | 139 | 6.78 | 8,303 | 94 | 4.49 | 7,738 | 56 | 2.95 | |||||||||||||||||
Total interest-earning assets | 1,229,569 | 14,774 | 4.90 | 1,204,098 | 14,378 | 4.74 | 1,103,825 | 13,447 | 4.94 | |||||||||||||||||
Non-earning assets: | ||||||||||||||||||||||||||
Cash and due from banks | 18,531 | 17,885 | 18,336 | |||||||||||||||||||||||
Premises and equipment | 13,362 | 13,620 | 15,631 | |||||||||||||||||||||||
Goodwill | 9,387 | 9,387 | 9,387 | |||||||||||||||||||||||
Other intangible assets, net | 644 | 700 | 878 | |||||||||||||||||||||||
Company-owned life insurance | 11,570 | 11,489 | 11,241 | |||||||||||||||||||||||
Allowance for loan losses | (11,822 | ) | (11,577 | ) | (11,168 | ) | ||||||||||||||||||||
Other non-earning assets | 12,195 | 13,669 | 10,347 | |||||||||||||||||||||||
Total assets | $ | 1,283,436 | $ | 1,259,271 | $ | 1,158,477 | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 63,501 | $ | 51 | 0.33 | % | $ | 61,817 | $ | 50 | 0.32 | % | $ | 57,464 | $ | 39 | 0.27 | % | ||||||||
Money market and savings deposits | 273,699 | 548 | 0.81 | 244,792 | 421 | 0.68 | 287,154 | 374 | 0.53 | |||||||||||||||||
Time deposits | 456,555 | 1,579 | 1.40 | 441,090 | 1,465 | 1.32 | 317,690 | 864 | 1.10 | |||||||||||||||||
Subordinated Debt | 14,844 | 250 | 6.83 | 14,835 | 255 | 6.85 | 14,791 | 250 | 6.86 | |||||||||||||||||
Borrowings | 56,819 | 219 | 1.56 | 56,550 | 183 | 1.28 | 105,446 | 176 | 0.68 | |||||||||||||||||
Total interest-bearing liabilities | 865,418 | 2,647 | 1.24 | 819,084 | 2,374 | 1.15 | 782,545 | 1,703 | 0.88 | |||||||||||||||||
Noninterest-bearing liabilities and shareholders' equity: | 0 | |||||||||||||||||||||||||
Noninterest bearing demand deposits | 298,681 | 321,426 | 268,286 | |||||||||||||||||||||||
Other liabilities | 8,931 | 10,004 | 8,716 | |||||||||||||||||||||||
Shareholders' equity | 110,406 | 108,757 | 98,930 | |||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,283,436 | $ | 1,259,271 | $ | 1,158,477 | ||||||||||||||||||||
Net interest income | $ | 12,127 | $ | 12,004 | $ | 11,744 | ||||||||||||||||||||
Interest spread | 3.66 | 3.59 | 4.06 | |||||||||||||||||||||||
Net interest margin (5) | 4.00 | 3.96 | 4.31 | |||||||||||||||||||||||
Tax equivalent effect | 0.03 | 0.05 | 0.03 | |||||||||||||||||||||||
Net interest margin on a fully tax equivalent basis | 4.03 | 4.01 | 4.34 |
Level One Bancorp, Inc. Loan Composition (Unaudited) | |||||||||||
March 31, | December 31, | March 31, | |||||||||
(Dollars in thousands) | 2018 | 2017 | 2017 | ||||||||
Commercial real estate | |||||||||||
Non-owner occupied | $ | 360,014 | $ | 343,420 | $ | 330,207 | |||||
Owner-occupied | 172,608 | 168,342 | 165,982 | ||||||||
Total commercial real estate | 532,622 | 511,762 | 495,979 | ||||||||
Commercial and industrial | 371,464 | 377,686 | 347,708 | ||||||||
Residential real estate | 146,436 | 144,439 | 116,120 | ||||||||
Consumer | 832 | 1,036 | 1,183 | ||||||||
Total loans | $ | 1,051,354 | $ | 1,034,923 | $ | 960,990 |
PE+^%"M;( =L\ 1Y4**T?(/ WD%4#(Z:
M)=MK?/J'=;UT:._I.Y(4V<#<*HO[, PK- $@4 \Q"4_?T =-^*U;,>H04@7:
M6X,W_R3%X:@9>XM)!2!YP-%ACJHOI<$&BDH4**JB%0!G$&N(^]"EW5$ PD,0
MN'7074"C4P%0L 9K #'&S< M \N4&9C039HHWNS]@Q@1XCZ)%2U>Q)A1XT:.
M'3':N_%@Q,@1$TR2-)E2IU
M'=9M"E2T&H' \JX, "#BIPH.('+IZ /0