EX-99.1 2 ex-99d1.htm EX-99.1 mrbk_Ex99_1

Exhibit 99.1

Picture 3

Meridian Corporation Reports Net Income of $2.0 Million, or $0.31 Per Diluted Share, in 1Q 2019

 

MALVERN, Pa., May 23, 2019 — Meridian Corporation (Nasdaq: MRBK) today reported net income of $2.0 million, or $0.31 per diluted share for the first quarter of 2019, which generated a return on average assets and return on average equity of 0.83% and 7.32%, respectively.  Meridian also reported a prior period adjustment of $315 thousand, net of tax, or $0.05 per diluted share for expenses related to mortgage loan state licensing issues.

“Meridian had a strong first quarter as earnings improved 58% to $2.0 million compared to 1Q 2018,” said Christopher J. Annas, Chairman and CEO. “Loan balances were 16.5% higher at the end of the first quarter compared to a year ago, contributing to our higher profitability. Net income and retained earnings were negatively affected by a combined $486 thousand in current and prior periods associated with a previously announced licensing issue in Maryland where mortgages were originated. We delayed filing our first quarter 2019 financial results  as a result of this matter and expect to file our Form 10-Q on or about May 24, 2019. With this licensing issue behind us, the mortgage division looks to have a profitable year.”

“The SBA and private banking teams both generated loans in the first quarter after joining Meridian in late 2018, and we are excited about their prospects going forward. In particular, the SBA team is addressing a market that Meridian did not participate in, and the loan growth and potential loan sale income should more than offset their expense in 2019.” 

“Our Delaware Valley market has favorable population trends according to recent studies, which are contributing to better economics in housing and small business formation. We participate deeply in both these segments and are excited about continued strength in 2020 and beyond.” 

 

 

Select Condensed Financial Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Quarter Ended (Unaudited)

 

 

2019

 

2018

 

2018

 

2018

 

2018

(Dollars in thousands, except per share data)

    

March 31

    

December 31

    

September 30

    

June 30

    

March 31

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income - consolidated

 

$

2,006

 

$

2,364

 

$

2,727

 

$

1,802

 

$

1,270

Diluted earnings per common share

 

$

0.31

 

$

0.37

 

$

0.42

 

$

0.28

 

$

0.20

Net income - excluding Mortgage

 

 

1,969

 

 

1,826

 

 

1,973

 

 

1,701

 

 

1,406

Net income - Mortgage

 

 

37

 

 

538

 

 

754

 

 

101

 

 

(136)

Net interest income - consolidated

 

 

8,477

 

 

8,441

 

 

8,378

 

 

8,146

 

 

7,692

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At the Quarter Ended (Unaudited)

 

 

2019

 

2018

 

2018

 

2018

 

2018

 

    

March 31

    

December 31

    

September 30

    

June 30

    

March 31

Balance Sheet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

1,027,514

 

$

997,480

 

$

959,921

 

$

945,527

 

$

883,613

Loans, net of fees and costs

 

 

862,372

 

 

838,106

 

 

806,788

 

 

781,622

 

 

740,408

Total deposits

 

 

810,713

 

 

752,130

 

 

781,927

 

 

683,250

 

 

679,303

Non-interest bearing deposits

 

 

115,464

 

 

126,150

 

 

124,855

 

 

106,942

 

 

105,576

 

 

 

1

Reconciliation of Non-GAAP Financial Measures

Meridian believes that non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts to evaluate performance trends and the adequacy of common equity.  This non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for performance and financial condition measures determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of Meridian’s results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Meridian believes adjusted net income, adjusted earnings per common share, adjusted ROAA and adjusted ROAE provide a greater understanding of ongoing operations and enhances comparability of results with prior periods. Because management believes that these adjustments are not incurred as a result of ongoing operations, they are not as helpful a measure of the performance of our underlying business, particularly in light of their unpredictable nature and are difficult to forecast.  This supplemental presentation should not be construed as an inference that Meridian’s future results will be unaffected by similar adjustments to these measures determined in accordance with GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income, Earnings per Share and Return Ratios (Unaudited)

 

 

2019

 

2018

 

2018

 

2018

 

2018

(Dollars in thousands, except per share data)

    

1st QTR

    

4th QTR

    

3rd QTR

    

2nd QTR

    

1st QTR

Net income - consolidated

 

$

2,006

 

$

2,364

 

$

2,727

 

$

1,802

 

$

1,270

Holding company formation cost adjustment

 

 

 —

 

 

 —

 

 

179

 

 

 —

 

 

 —

Contingent asset fair value adjustment

 

 

 —

 

 

 —

 

 

138

 

 

 —

 

 

 —

Adjusted net income - consolidated(1)

 

 

2,006

 

 

2,364

 

 

3,044

 

 

1,802

 

 

1,270

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income - excluding Mortgage

 

 

1,969

 

 

1,826

 

 

1,973

 

 

1,701

 

 

1,406

Adjusted net income - excluding Mortgage(1)

 

 

1,969

 

 

1,826

 

 

2,290

 

 

1,701

 

 

1,406

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, diluted

 

$

0.31

 

$

0.37

 

$

0.42

 

$

0.28

 

$

0.20

Holding company formation cost adjustment

 

 

 —

 

 

 —

 

 

0.03

 

 

 —

 

 

 —

Contingent asset fair value adjustment

 

 

 —

 

 

 —

 

 

0.02

 

 

 —

 

 

 —

Adjusted diluted earnings per share(1)

 

$

0.31

 

$

0.37

 

$

0.47

 

$

0.28

 

$

0.20

Adjusted diluted earnings per share- excluding Mortgage(1)

 

$

0.31

 

$

0.28

 

$

0.36

 

$

0.26

 

$

0.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets - consolidated

 

 

0.83%

 

 

0.99%

 

 

1.16%

 

 

0.81%

 

 

0.61%

Adjusted return on average assets - consolidated(1)

 

 

0.83%

 

 

0.99%

 

 

1.29%

 

 

0.81%

 

 

0.61%

Return on average equity - consolidated

 

 

7.32%

 

 

8.66%

 

 

10.19%

 

 

7.02%

 

 

5.08%

Adjusted return on average equity - consolidated(1)

 

 

7.32%

 

 

8.66%

 

 

11.34%

 

 

7.02%

 

 

5.08%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets - excluding Mortgage

 

 

0.83%

 

 

0.79%

 

 

0.87%

 

 

0.79%

 

 

0.70%

Adjusted return on average assets - excluding Mortgage(1)

 

 

0.83%

 

 

0.79%

 

 

0.97%

 

 

0.79%

 

 

0.70%

Return on average equity - excluding Mortgage

 

 

7.18%

 

 

6.69%

 

 

7.37%

 

 

6.63%

 

 

5.63%

Adjusted return on average equity - excluding Mortgage(1)

 

 

7.18%

 

 

6.69%

 

 

8.53%

 

 

6.63%

 

 

5.63%

(1)

Adjusted net income, adjusted earnings per common share, adjusted ROAA and adjusted ROAE are non-GAAP measures and remove the tax effect of the charge to earnings for the holding company formation costs of $51 thousand, and the fair value adjustment to contingent assets of $39 thousand in the third quarter of 2018.

2

Financial Highlights

Net income for the three months ended March 31, 2019 was $2.0 million,  reflecting an increase of $700 thousand as compared to net income for the same period in 2018.

·

Total assets of $1.03 billion as of March 31, 2019 increased $30 million, or 3.0%  during the quarter and $144.0 million or 16.3% year-over-year.

·

Total portfolio loans and leases of $862.4 million as of March 31, 2019 increased $24.3 million, or 2.9%  during the quarter and $122.0 million or 16.5% year-over-year.

·

Total deposits of $810.7 million as of March 31, 2019 increased $58.6 million, or 7.8%  during the quarter and $131.4 million or 19.3% year-over-year.

·

Non-interest bearing deposits of $115.5 million as of March 31, 2019 decreased $10.7 million, or 8.5% during the quarter but increased $9.9 million or 9.4% year-over-year.

·

Net interest income of $8.5 million increased $800 thousand, or 10.2% for the three months ended March 31, 2019 compared to $7.7 million for the same period in 2018.

Income Statement Summary

Net income was $2.0 million, or $0.31 per diluted share for the three months ended March 31, 2019 compared to net income of $1.3 million, or $0.20 per diluted share, for the same period in 2018.  The increase was largely attributable to an increase  in net interest income of $800 thousand, in addition to a lower level of provision for loan losses as asset quality has remained strong.  Non-interest income for the three months ended March 31, 2019 decreased $609 thousand,  which was partially offset by the  $445 thousand decrease in non-interest expense.

Net interest income increased $800 thousand, or 10.2%, to $8.5 million for the three months ended March 31, 2019,  from $7.7 million for the same period in 2018.  The growth in interest income for the three months ended March 31, 2019 compared to the same period in 2018 reflects an increase in average interest earning assets of $138.8 million. This increase was partially offset by the decrease in the net interest margin from 3.91% for the three months ended March 31, 2018 to 3.67% for the three month ended March 31, 2019.  The decrease in net interest margin reflects pressure from the rising cost of funds, which has outpaced the favorable trend in yield on interest earning assets year-over-year. The provision for loan losses decreased $335 thousand to $219 thousand for the three months ended March 31, 2019 due to continued strong asset quality and lower levels of net charge-offs year-over-year.

Total non-interest income for the three months ended March 31, 2019 was $6.4 million, down $609 thousand, or 8.6%, from the comparable period in 2018.  This overall decrease in non-interest income came primarily from our mortgage division. While mortgage banking revenue increased $87 thousand and the net change in fair value of mortgage related financial instruments increased $397 thousand year-over-year, realized gains on derivatives related to mortgage banking, included in other non-interest income, decreased $974 thousand for the three months ended March 31, 2019 to a loss of $275 thousand, compared to a gain of $699 thousand for the same period in 2018. Wealth management revenue decreased $214 thousand year-over-year.  Revenue for the three months ended March 31, 2019 was largely based on the market values of assets under management at the end of 2018, which were temporary depressed due to year-end declines in the stock market. 

Total non-interest expense was $12.1 million for the three months ended March 31, 2019, down $445 thousand, or 3.5%, from $12.6 million for the three months ended March 31, 2018. The decrease is mainly attributable to a reduction in salaries and employee benefits expense of $709 thousand or 8.4%, as full-time equivalent employees, particularly in the mortgage division were reduced. In addition, variable loan expenses decreased by $64 thousand or 12%, reflecting the lower level of mortgage originations year-over-year. Occupancy and equipment expense as well as professional fees were relatively flat for the comparable three month period, while advertising and promotion expense was down $116

3

thousand year-over-year due to changes in the timing of certain marketing campaigns.  Data processing expenses were up modestly due to the increased transaction volume. Other expenses were up over the comparable three month period due to a charge of $125 thousand to the reserve for the open litigation and higher levels of other employee-related expenses, shares tax expense, as well as other expenses.  Additionally, $79 thousand of other expense was incurred for the current period impact of the Maryland mortgage licensing issue previously announced.  The impact of the Maryland licensing issue totaled $486 thousand, however $407 thousand ($315 thousand net of tax) pertained to prior periods and was adjusted through retained earnings as of January 1, 2018 as it was considered the correction of an immaterial error.

Balance Sheet Summary

As of March 31, 2019, total assets were $1.03 billion compared with $883.6 million as of March 31, 2018 and $997.5 million as of December 31, 2018. Total assets increased $144.0 million, or 16.3%, on a year-over-year basis primarily due to strong loan growth.  Total assets increased $30 million, or 3.0%, from the previous quarter, mostly due to an increase in portfolio loans of $24.3 million.

Total loans, excluding mortgage loans held for sale, grew $122.0 million, or 16.5%, to $862.4 million as of March 31, 2019, from $740.4 million as of March 31, 2018. This was an increase of $24.3 million, or 2.9%, from $838.1 million as of December 31, 2018. The increase in loans for both periods is attributable to several commercial categories as we continue to grow our presence in the Philadelphia market area. Commercial loans increased $43.5 million, or 19.3%, year-over-year, while commercial real estate and commercial construction loans combined increased $56.5 million, or 14.3%, year-over-year. Residential loans held in portfolio increased  $20.5 million, or 55.2%, year-over-year as certain loan products or terms were targeted to hold in portfolio. Residential mortgage loans held for sale decreased $1.2 million, or 4.0%, to $29.6 million as of March 31, 2019 from March 31, 2018.

Deposits were $810.7 million as of March 31, 2019, up $131.4 million, or 19.3%, from March 31, 2018, and up $58.6 million, or 7.8%, from December 31, 2018. Non-interest bearing deposits increased $9.9 million, or 9.4%, from March 31, 2018 and decreased $10.7 million, or 8.5%, from December 31, 2018. New business relationships fueled the increases year-over-year, however the decrease since December 31, 2018 related primarily to business fluctuations or transfers to interest-bearing accounts.  Money market accounts/savings accounts increased $73.2 million, or 34.3%, since March 31, 2018 and $53.8 million, or 23.1%, since December 31, 2018 due to new business relationship money market accounts.  Interest-bearing checking accounts increased $2.6 million, or 2.3%, year-over-year, and decreased $2.1 million or 1.9% quarter-over-quarter. Certificates of deposit increased $45.8 million, or 18.3%, during the year and $17.6 million, or 6.3%, quarter-over-quarter.

Consolidated stockholders’ equity of the Corporation was $112.0 million, or 10.90% of total assets as of March 31, 2019, as compared to $102 million, or 11.55% of total assets as of March 31, 2018. As of March 31, 2019, the Tier 1 leverage ratio was 11.01%, the Tier 1 risk-based capital and common equity ratios were 11.71%, and total risk-based capital was 13.65%. Quarter-end numbers show a tangible common equity to tangible assets ratio of 10.47%. Tangible book value per share was $16.70 as of March 31, 2019, compared with $15.12 as of March 31, 2018.

Asset Quality Summary

Asset quality remains strong year-over-year. The Bank realized net reoveries of (0.01)% of total average loans for the quarter ending March 31, 2019, compared with net charge-offs of 0.02% for the quarter ending March 31, 2018. Total non-performing assets, including loans and other real estate property, were $4.0 million as of March 31, 2019, $3.4 million as of March 31, 2018, and $3.9 million as of December 31, 2018. The ratio of non-performing assets to total assets as of March 31, 2019 was 0.38% compared to 0.38% as of March 31, 2018 and 0.39% as of December 31, 2018. The ratio of allowance for loan losses to total loans held for investment, excluding loans at fair value, was 0.99% as of March 31, 2019, an improvement from the 0.98% recorded as of March 31, 2018 and 0.97% as of December 31, 2018.

About Meridian Corporation

Meridian Bank, the wholly owned subsidiary of Meridian Corporation, is a full-service commercial bank headquartered in Malvern, Pennsylvania with 23 offices in the greater Philadelphia Metro market. The Bank offers a full range of

4

commercial and retail loan and deposit products, along with wealth management and electronic payment services. Meridian Mortgage, a division of the Bank, is a top tier provider of residential mortgage loans. For additional information, visit our website at www.meridianbanker.com.  Member FDIC.

“Safe Harbor” Statement

In addition to historical information, this press release may contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to Meridian Corporation’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words “may,” “could,” “should,” “pro forma,” “looking forward,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Meridian Corporation’s control). Numerous competitive, economic, regulatory, legal and technological factors, among others, could cause Meridian Corporation’s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements.   Meridian Corporation cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact of any future events. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. For a more complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review Meridian Corporation’s filings with the Securities and Exchange Commission (including our Annual Report on Form 10-K for the year ended December 31, 2018) and, for periods prior to the completion of the holding company reorganization, Meridian Bank’s filings with the FDIC, including Meridian Bank’s Annual Report on Form 10‑K for the year ended December 31, 2017, subsequently filed quarterly reports on Form 10‑Q and current reports on Form 8‑K that update or provide information in addition to the information included in the Form 10‑K and Form 10‑Q filings, if any. Meridian Corporation does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by Meridian Corporation or by or on behalf of Meridian Bank.

 

 

FINANCIAL TABLES FOLLOW

 

5

FINANCIAL RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarterly

 

 

2019

 

2018

 

2018

 

2018

 

2018

(Dollars in thousands, except per share data)

    

1st QTR

    

4th QTR

    

3rd QTR

    

2nd QTR

    

1st QTR

Earnings and Per Share Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

2,006

 

$

2,364

 

$

2,727

 

$

1,802

 

$

1,270

Basic earnings per common share

 

 

0.31

 

 

0.37

 

 

0.43

 

 

0.28

 

 

0.20

Common shares outstanding

 

 

6,407

 

 

6,407

 

 

6,407

 

 

6,401

 

 

6,392

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets - consolidated

 

 

0.83%

 

 

0.99%

 

 

1.16%

 

 

0.81%

 

 

0.61%

Return on average assets - excluding Mortgage (non-GAAP)

 

 

0.83%

 

 

0.79%

 

 

0.87%

 

 

0.79%

 

 

0.70%

Return on average equity - consolidated

 

 

7.32%

 

 

8.66%

 

 

10.19%

 

 

7.02%

 

 

5.08%

Return on average equity - excluding Mortgage (non-GAAP)

 

 

7.18%

 

 

6.69%

 

 

7.37%

 

 

6.63%

 

 

5.63%

Net interest margin (TEY)

 

 

3.67%

 

 

3.70%

 

 

3.72%

 

 

3.88%

 

 

3.91%

Efficiency ratio - consolidated

 

 

81%

 

 

79%

 

 

78%

 

 

84%

 

 

85%

Adjusted efficiency ratio - consolidated (non-GAAP)

 

 

81%

 

 

79%

 

 

76%

 

 

84%

 

 

85%

Efficiency ratio - excluding Mortgage (non-GAAP)

 

 

72%

 

 

73%

 

 

71%

 

 

73%

 

 

77%

Adjusted efficiency ratio - excluding Mortgage (non-GAAP)

 

 

72%

 

 

73%

 

 

67%

 

 

73%

 

 

77%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs to average loans

 

 

(0.01%)

 

 

0.00%

 

 

0.00%

 

 

0.01%

 

 

0.02%

Non-performing loans/Total loans

 

 

0.43%

 

 

0.45%

 

 

0.35%

 

 

0.34%

 

 

0.38%

Non-performing assets/Total assets

 

 

0.38%

 

 

0.39%

 

 

0.30%

 

 

0.30%

 

 

0.38%

Allowance for loan losses/Total loans

 

 

0.94%

 

 

0.92%

 

 

0.92%

 

 

0.90%

 

 

0.93%

Allowance for loan losses/Total loans held for investment (excluding loans at fair value)

 

 

0.99%

 

 

0.97%

 

 

0.97%

 

 

0.97%

 

 

0.98%

Allowance for loan losses/Non-performing loans

 

 

218.64%

 

 

204.85%

 

 

263.89%

 

 

261.83%

 

 

241.97%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per common share

 

$

17.48

 

$

17.10

 

$

16.67

 

$

16.27

 

$

15.96

Tangible book value per common share

 

$

16.70

 

$

16.31

 

$

15.87

 

$

15.43

 

$

15.12

Total equity/Total assets

 

 

10.90%

 

 

10.98%

 

 

11.12%

 

 

11.01%

 

 

11.55%

Tangible common equity/Tangible assets

 

 

10.47%

 

 

10.53%

 

 

10.64%

 

 

10.50%

 

 

11.00%

Tier 1 leverage ratio

 

 

11.01%

 

 

11.16%

 

 

10.98%

 

 

11.24%

 

 

11.65%

Common tier 1 risk-based capital ratio

 

 

11.71%

 

 

11.72%

 

 

11.99%

 

 

11.99%

 

 

12.32%

Tier 1 risk-based capital ratio

 

 

11.71%

 

 

11.72%

 

 

11.99%

 

 

11.99%

 

 

12.32%

Total risk-based capital ratio

 

 

13.65%

 

 

13.66%

 

 

13.99%

 

 

14.03%

 

 

14.41%

 

6

 

 

 

 

 

 

 

 

 

 

Statements of Income (Unaudited)

 

 

Quarter Ended

(Dollars in Thousands)

    

March 31, 2019

    

March 31, 2018

Interest Income

 

 

 

 

 

 

Interest and fees on loans

 

$

11,887

 

$

9,493

Investments

 

 

437

 

 

303

Total interest income

 

 

12,324

 

 

9,796

 

 

 

 

 

 

 

Interest Expense

 

 

 

 

 

 

Deposits

 

 

3,236

 

 

1,659

Borrowings

 

 

611

 

 

445

  Total interest expense

 

 

3,847

 

 

2,104

 

 

 

 

 

 

 

Net interest income

 

 

8,477

 

 

7,692

Provision for loan losses

 

 

219

 

 

554

Net interest income after provision for loan losses

 

 

8,258

 

 

7,138

 

 

 

 

 

 

 

Non-Interest Income

 

 

 

 

 

 

Mortgage banking income

 

 

4,908

 

 

4,821

Wealth management income

 

 

864

 

 

1,078

Earnings on investment in life insurance

 

 

72

 

 

78

Net change in fair value of mortgage related financial instruments

 

 

430

 

 

33

Service charges

 

 

27

 

 

32

Other

 

 

146

 

 

1,014

Total non-interest income

 

 

6,447

 

 

7,056

 

 

 

 

 

 

 

Non-Interest Expenses

 

 

 

 

 

 

Salaries and employee benefits

 

 

7,727

 

 

8,436

Occupancy and equipment

 

 

963

 

 

960

Loan expenses

 

 

468

 

 

532

Professional fees

 

 

472

 

 

479

Advertising and promotion

 

 

465

 

 

581

Data processing

 

 

324

 

 

288

Information technology

 

 

266

 

 

325

Communications

 

 

192

 

 

246

Other

 

 

1,240

 

 

715

Total non-interest expenses

 

 

12,117

 

 

12,562

 

 

 

 

 

 

 

Income before income taxes

 

 

2,588

 

 

1,632

Income tax expense

 

 

582

 

 

362

Net Income

 

$

2,006

 

$

1,270

 

 

 

 

 

 

 

Weighted-average basic shares outstanding

 

 

6,407

 

 

6,392

Basic earnings per common share

 

$

0.31

 

$

0.20

 

 

 

 

 

 

 

Adjusted weighted-average diluted shares outstanding

 

 

6,436

 

 

6,426

Diluted earnings per common share

 

$

0.31

 

$

0.20

 

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Condition (Unaudited)

(Dollars in Thousands)

    

March 31, 2019

    

December 31, 2018

    

September 30, 2018

    

June 30, 2018

    

March 31, 2018

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash & cash equivalents

 

$

38,940

 

$

23,952

 

$

25,823

 

$

27,013

 

$

24,964

Investment securities

 

 

63,152

 

 

63,169

 

 

60,449

 

 

54,773

 

 

51,372

Mortgage loans held for sale

 

 

29,612

 

 

37,695

 

 

34,044

 

 

45,571

 

 

30,858

Loans, net of fees and costs

 

 

862,372

 

 

838,106

 

 

806,788

 

 

781,622

 

 

740,408

Allowance for loan losses

 

 

(8,376)

 

 

(8,053)

 

 

(7,711)

 

 

(7,449)

 

 

(7,138)

Bank premises and equipment, net

 

 

9,276

 

 

9,638

 

 

9,947

 

 

10,207

 

 

10,446

Bank owned life insurance

 

 

11,641

 

 

11,569

 

 

11,494

 

 

11,420

 

 

11,347

Other real estate owned

 

 

120

 

 

 —

 

 

 —

 

 

 —

 

 

427

Goodwill and intangible assets

 

 

4,978

 

 

5,046

 

 

5,114

 

 

5,359

 

 

5,427

Other assets

 

 

15,799

 

 

16,358

 

 

13,973

 

 

17,011

 

 

15,502

Total Assets

 

$

1,027,514

 

$

997,480

 

$

959,921

 

$

945,527

 

$

883,613

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities & Stockholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing deposits

 

$

115,464

 

$

126,150

 

$

124,855

 

$

106,942

 

$

105,576

Interest bearing deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking

 

 

112,484

 

 

114,610

 

 

103,353

 

 

110,259

 

 

109,914

Money market / savings accounts

 

 

286,463

 

 

232,653

 

 

276,258

 

 

215,042

 

 

213,282

Certificates of deposit

 

 

296,302

 

 

278,717

 

 

277,461

 

 

251,007

 

 

250,531

Total interest bearing deposits

 

 

695,249

 

 

625,980

 

 

657,072

 

 

576,308

 

 

573,727

Total deposits

 

 

810,713

 

 

752,130

 

 

781,927

 

 

683,250

 

 

679,303

Borrowings

 

 

88,264

 

 

120,538

 

 

50,199

 

 

142,176

 

 

86,366

Subordinated debt

 

 

9,239

 

 

9,239

 

 

9,308

 

 

9,308

 

 

9,308

Other liabilities

 

 

7,306

 

 

6,021

 

 

11,784

 

 

6,728

 

 

6,591

Total Liabilities

 

 

915,522

 

 

887,928

 

 

853,218

 

 

841,462

 

 

781,568

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity

 

 

111,992

 

 

109,552

 

 

106,703

 

 

104,065

 

 

102,045

Total Liabilities & Stockholders’ Equity

 

$

1,027,514

 

$

997,480

 

$

959,921

 

$

945,527

 

$

883,613

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Statements of Income (Unaudited)

 

 

Three Months Ended

(Dollars in Thousands)

    

March 31, 2019

    

December 31, 2018

    

September 30, 2018

    

June 30, 2018

    

March 31, 2018

Interest income

 

$

12,324

 

$

11,886

 

$

11,573

 

$

10,809

 

$

9,796

Interest expense

 

 

3,847

 

 

3,445

 

 

3,195

 

 

2,663

 

 

2,104

Net interest income

 

 

8,477

 

 

8,441

 

 

8,378

 

 

8,146

 

 

7,692

Provision for credit losses

 

 

219

 

 

319

 

 

291

 

 

413

 

 

554

Non-interest income

 

 

6,447

 

 

7,464

 

 

9,167

 

 

8,668

 

 

7,056

Non-interest expense

 

 

12,117

 

 

12,556

 

 

13,753

 

 

14,074

 

 

12,562

Income before income tax expense

 

 

2,588

 

 

3,030

 

 

3,501

 

 

2,327

 

 

1,632

Income tax expense

 

 

582

 

 

666

 

 

774

 

 

525

 

 

362

Net Income

 

$

2,006

 

$

2,364

 

$

2,727

 

$

1,802

 

$

1,270

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average basic shares outstanding

 

 

6,407

 

 

6,407

 

 

6,402

 

 

6,395

 

 

6,392

Basic earnings per common share

 

$

0.31

 

$

0.37

 

$

0.43

 

$

0.28

 

$

0.20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted weighted-average diluted shares outstanding

 

 

6,436

 

 

6,433

 

 

6,430

 

 

6,425

 

 

6,426

Diluted earnings per common share

 

$

0.31

 

$

0.37

 

$

0.42

 

$

0.28

 

$

0.20

 

9