The Board of Directors declared a cash dividend of
“Our second fiscal quarter represented a milestone for
As of
1. The following table highlights the changes in the loan portfolio for the three and six months ended
Loan Portfolio Changes | |||||||||||||||
Three Months Ended | |||||||||||||||
Balance | Balance | Change ($) | Change (%) | ||||||||||||
(Dollars in thousands) | |||||||||||||||
National Lending Purchased | $ | 1,483,567 | $ | 530,393 | $ | 953,174 | 179.71 | % | |||||||
National Lending Originated | 963,775 | 873,292 | 90,483 | 10.36 | % | ||||||||||
SBA National | 27,239 | 27,636 | (397 | ) | (1.44 | %) | |||||||||
Community Banking | 30,176 | 32,899 | (2,723 | ) | (8.28 | %) | |||||||||
Total | $ | 2,504,757 | $ | 1,464,220 | $ | 1,040,537 | 71.06 | % |
Six Months Ended | ||||||||||||||
Balance | Balance | Change ($) | Change (%) | |||||||||||
(Dollars in thousands) | ||||||||||||||
National Lending Purchased | $ | 1,483,567 | $ | 477,682 | $ | 1,005,885 | 210.58 | % | ||||||
National Lending Originated | 963,775 | 759,229 | 204,546 | 26.94 | % | |||||||||
SBA National | 27,239 | 33,046 | (5,807 | ) | (17.57 | %) | ||||||||
Community Banking | 30,176 | 34,909 | (4,733 | ) | (13.56 | %) | ||||||||
Total | $ | 2,504,757 | $ | 1,304,866 | $ | 1,199,891 | 91.96 | % | ||||||
Loans generated by the Bank's National Lending Division for the quarter ended
An overview of the Bank’s National Lending portfolio follows:
National Lending Portfolio | |||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Purchased | Originated | Total | Purchased | Originated | Total | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Loans purchased or originated during the period: | |||||||||||||||||||||||
Unpaid principal balance | $ | 1,152,957 | $ | 173,992 | $ | 1,326,949 | $ | 93,379 | $ | 168,398 | $ | 261,777 | |||||||||||
Net investment basis | 998,527 | 173,992 | 1,172,519 | 92,136 | 168,398 | 260,534 | |||||||||||||||||
Returns on loan portfolio during the period: | |||||||||||||||||||||||
Yield | 8.69 | % | 8.50 | % | 8.59 | % | 8.92 | % | 6.48 | % | 7.53 | % |
Six Months Ended | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Purchased | Originated | Total | Purchased | Originated | Total | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Loans purchased or originated during the period: | |||||||||||||||||||||||
Unpaid principal balance | $ | 1,236,815 | $ | 355,712 | $ | 1,592,527 | $ | 130,413 | $ | 262,884 | $ | 393,297 | |||||||||||
Net investment basis | 1,076,064 | 355,712 | 1,431,776 | 127,492 | 262,884 | 390,376 | |||||||||||||||||
Returns on loan portfolio during the period: | |||||||||||||||||||||||
Yield | 8.07 | % | 8.19 | % | 8.14 | % | 9.08 | % | 6.43 | % | 7.58 | % | |||||||||||
Total loans as of period end: | |||||||||||||||||||||||
Unpaid principal balance | $ | 1,673,158 | $ | 963,775 | $ | 2,636,933 | $ | 518,175 | $ | 619,223 | $ | 1,137,398 | |||||||||||
Net investment basis | 1,483,567 | 963,775 | 2,447,342 | 484,513 | 619,223 | 1,103,736 | |||||||||||||||||
2. Deposits increased by
3. Shareholders’ equity increased by
Net income decreased by
1. Net interest and dividend income before provision for loan losses increased by
- An increase in interest income earned on loans of
$16.0 million , primarily due to an increase in interest income earned on the National Lending Division’s originated and purchased portfolios, due to higher average balances in both portfolios and higher rates earned on the originated portfolio, partially offset by lower rates earned on the purchased portfolio; and - An increase in interest income earned on short-term investments of
$1.6 million , due to higher rates earned, partially offset by lower average balances; partially offset by, - An increase in deposit interest expense of
$8.7 million , due to higher interest rates and higher average balances in interest-bearing deposits; and - An increase in FHLB borrowings interest expense of
$411 thousand , due to higher average balances.
The following table summarizes interest income and related yields recognized on the loan portfolios:
Interest Income and Yield on Loans | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||
Average | Interest | Average | Interest | ||||||||||||||||||
Balance | Income | Yield | Balance | Income | Yield | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Community Banking | $ | 30,920 | $ | 586 | 7.52 | % | $ | 42,728 | $ | 556 | 5.16 | % | |||||||||
SBA National | 27,757 | 610 | 8.72 | % | 36,027 | 635 | 6.99 | % | |||||||||||||
SBA PPP | - | - | 0.00 | % | 628 | 2 | 1.26 | % | |||||||||||||
National Lending: | |||||||||||||||||||||
Originated | 899,562 | 19,274 | 8.50 | % | 601,394 | 9,827 | 6.48 | % | |||||||||||||
Purchased | 765,085 | 16,758 | 8.69 | % | 452,644 | 10,175 | 8.92 | % | |||||||||||||
Total National Lending | 1,664,647 | 36,032 | 8.59 | % | 1,054,038 | 20,002 | 7.53 | % | |||||||||||||
Total | $ | 1,723,324 | $ | 37,228 | 8.57 | % | $ | 1,133,421 | $ | 21,195 | 7.42 | % | |||||||||
Six Months Ended | |||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||
Average | Interest | Average | Interest | ||||||||||||||||||
Balance | Income | Yield | Balance | Income | Yield | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Community Banking | $ | 31,904 | $ | 1,052 | 6.54 | % | $ | 43,383 | $ | 1,131 | 5.17 | % | |||||||||
SBA National | 29,267 | 1,340 | 9.08 | % | 38,168 | 1,271 | 6.61 | % | |||||||||||||
SBA PPP | - | - | 0.00 | % | 1,006 | 13 | 2.56 | % | |||||||||||||
National Lending: | |||||||||||||||||||||
Originated | 857,775 | 35,425 | 8.19 | % | 574,343 | 18,612 | 6.43 | % | |||||||||||||
Purchased | 626,552 | 25,490 | 8.07 | % | 440,224 | 20,161 | 9.08 | % | |||||||||||||
Total National Lending | 1,484,327 | 60,915 | 8.14 | % | 1,014,567 | 38,773 | 7.58 | % | |||||||||||||
Total | $ | 1,545,498 | $ | 63,307 | 8.13 | % | $ | 1,097,124 | $ | 41,188 | 7.45 | % | |||||||||
The components of total income on purchased loans are set forth in the table below entitled “Total Return on Purchased Loans.” When compared to the quarter ended
Total Return on Purchased Loans | |||||||||||||
Three Months Ended | |||||||||||||
2022 | 2021 | ||||||||||||
Income | Return (1) | Income | Return (1) | ||||||||||
(Dollars in thousands) | |||||||||||||
Regularly scheduled interest and accretion | $ | 13,014 | 6.75 | % | $ | 7,576 | 6.64 | % | |||||
Transactional income: | |||||||||||||
Gain on real estate owned | - | 0.00 | % | 49 | 0.04 | % | |||||||
Accelerated accretion and loan fees | 3,744 | 1.94 | % | 2,599 | 2.28 | % | |||||||
Total transactional income | 3,744 | 1.94 | % | 2,648 | 2.32 | % | |||||||
Total | $ | 16,758 | 8.69 | % | $ | 10,224 | 8.96 | % | |||||
Six Months Ended | |||||||||||||
2022 | 2021 | ||||||||||||
Income | Return (1) | Income | Return (1) | ||||||||||
(Dollars in thousands) | |||||||||||||
Regularly scheduled interest and accretion | $ | 20,688 | 6.55 | % | $ | 14,557 | 6.56 | % | |||||
Transactional income: | |||||||||||||
Loss on real estate owned | - | 0.00 | % | (25 | ) | (0.01 | %) | ||||||
Accelerated accretion and loan fees | 4,802 | 1.52 | % | 5,604 | 2.52 | % | |||||||
Total transactional income | 4,802 | 1.52 | % | 5,579 | 2.51 | % | |||||||
Total | $ | 25,490 | 8.07 | % | $ | 20,136 | 9.07 | % | |||||
(1) The total return on purchased loans represents scheduled accretion, accelerated accretion, gains on asset sales and gains on real estate owned recorded during the period divided by the average invested balance, which includes purchased loans held for sale, on an annualized basis. The total return does not include the effect of purchased loan charge-offs or recoveries in the quarter. Total return is considered a non-GAAP financial measure.
2. Provision (credit) for loan losses increased by
3. Noninterest income decreased by
- A decrease in correspondent fee income of
$5.4 million from the recognition of correspondent fees and net servicing income. Correspondent income for the quarters endedDecember 31, 2022 and 2021 is comprised of the following components:
Three Months Ended | |||||||
2022 | 2021 | ||||||
(In thousands) | |||||||
Correspondent Fee | $ | 29 | $ | 1,087 | |||
Amortization of Purchased Accrued Interest | 275 | 1,614 | |||||
Earned Net Servicing Interest | 314 | 3,340 | |||||
Total | $ | 618 | $ | 6,041 | |||
The Bank has
- An increase in fees for other customers of
$199 thousand , primarily due to increased commercial loan servicing fees during the quarter endedDecember 31, 2022 .
4. Noninterest expense increased by
- An increase in salaries and employee benefits expense of
$1.0 million , primarily due to increases in regular employee compensation, stock compensation, and bonus expense; - An increase in loan expense of
$538 thousand , due to an increase in correspondent expense; - An increase in occupancy and equipment expense of
$336 thousand , primarily due to expenses associated with the new lease of office space inBoston, Massachusetts ; and - An increase in other noninterest expense of
$325 thousand , primarily due to an increase in deposit expense of$179 thousand , primarily from increased excess deposit insurance costs and debit card expense, and an increase in meals and entertainment expense of$142 thousand .
5. Income tax expense decreased by
As of
As of
As of
Investor Call Information
About
Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures, including tangible common shareholders’ equity, tangible book value per share, total return on purchased loans, efficiency ratio, and net interest margin excluding collection account. The Bank’s management believes that the supplemental non-GAAP information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.
Forward-Looking Statements
Statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the
NBN-F
BALANCE SHEETS | |||||||
(Unaudited) | |||||||
(Dollars in thousands, except share and per share data) | |||||||
Assets | |||||||
Cash and due from banks | $ | 2,540 | $ | 2,095 | |||
Short-term investments | 161,776 | 169,984 | |||||
Total cash and cash equivalents | 164,316 | 172,079 | |||||
Available-for-sale debt securities, at fair value | 53,698 | 54,911 | |||||
Equity securities, at fair value | 6,665 | 6,798 | |||||
Total investment securities | 60,363 | 61,709 | |||||
Loans: | |||||||
Commercial real estate | 1,939,151 | 882,187 | |||||
Commercial and industrial | 479,215 | 352,729 | |||||
Residential real estate | 85,782 | 69,209 | |||||
Consumer | 609 | 741 | |||||
Total loans | 2,504,757 | 1,304,866 | |||||
Less: Allowance for loan losses | 6,411 | 5,028 | |||||
Loans, net | 2,498,346 | 1,299,838 | |||||
Premises and equipment, net | 27,333 | 9,606 | |||||
11,481 | 1,610 | ||||||
Loan servicing rights, net | 1,860 | 1,285 | |||||
Bank-owned life insurance | 18,141 | 17,922 | |||||
Other assets | 27,577 | 18,710 | |||||
Total assets | $ | 2,809,417 | $ | 1,582,759 | |||
Liabilities and Shareholders' Equity | |||||||
Deposits: | |||||||
Demand | $ | 183,485 | $ | 329,007 | |||
Savings and interest checking | 725,356 | 585,274 | |||||
Money market | 248,129 | 246,095 | |||||
Time | 1,078,439 | 127,317 | |||||
Total deposits | 2,235,409 | 1,287,693 | |||||
260,000 | 15,000 | ||||||
Lease liability | 20,903 | 4,451 | |||||
Other liabilities | 29,678 | 27,294 | |||||
Total liabilities | 2,545,990 | 1,334,438 | |||||
Commitments and contingencies | |||||||
Shareholders' equity | |||||||
Preferred stock, | - | - | |||||
Voting common stock, | 7,511 | 7,442 | |||||
Non-voting common stock, | - | - | |||||
Additional paid-in capital | 34,423 | 38,749 | |||||
Retained earnings | 222,417 | 202,980 | |||||
Accumulated other comprehensive loss | (924 | ) | (850 | ) | |||
Total shareholders' equity | 263,427 | 248,321 | |||||
Total liabilities and shareholders' equity | $ | 2,809,417 | $ | 1,582,759 | |||
STATEMENTS OF INCOME | |||||||||||||||
(Unaudited) | |||||||||||||||
(Dollars in thousands, except share and per share data) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Interest and dividend income: | |||||||||||||||
Interest and fees on loans | $ | 37,228 | $ | 21,195 | $ | 63,307 | $ | 41,188 | |||||||
Interest on available-for-sale securities | 270 | 76 | 419 | 170 | |||||||||||
Other interest and dividend income | 1,703 | 118 | 2,339 | 292 | |||||||||||
Total interest and dividend income | 39,201 | 21,389 | 66,065 | 41,650 | |||||||||||
Interest expense: | |||||||||||||||
Deposits | 9,896 | 1,184 | 12,698 | 2,492 | |||||||||||
538 | 127 | 933 | 255 | ||||||||||||
Obligation under capital lease agreements | 15 | 23 | 33 | 49 | |||||||||||
Total interest expense | 10,449 | 1,334 | 13,664 | 2,796 | |||||||||||
Net interest and dividend income before provision for loan losses | 28,752 | 20,055 | 52,401 | 38,854 | |||||||||||
Provision (credit) for loan losses | 325 | (1,069 | ) | 1,175 | (1,295 | ) | |||||||||
Net interest and dividend income after provision for loan losses | 28,427 | 21,124 | 51,226 | 40,149 | |||||||||||
Noninterest income: | |||||||||||||||
Fees for other services to customers | 503 | 304 | 770 | 761 | |||||||||||
Gain on sales of SBA loans | 35 | - | 71 | - | |||||||||||
Gain on sales of PPP loans | - | - | - | 86 | |||||||||||
Net unrealized gain (loss) on equity securities | 11 | (53 | ) | (207 | ) | (74 | ) | ||||||||
Gain (loss) on real estate owned, other repossessed collateral and premises and equipment, net | (29 | ) | 73 | 23 | (1 | ) | |||||||||
Correspondent fee income | 618 | 6,041 | 2,000 | 13,872 | |||||||||||
Gain on termination of interest rate swap | - | - | 96 | - | |||||||||||
Bank-owned life insurance income | 110 | 106 | 219 | 212 | |||||||||||
Other noninterest income | 53 | 22 | (12 | ) | 36 | ||||||||||
Total noninterest income | 1,301 | 6,493 | 2,960 | 14,892 | |||||||||||
Noninterest expense: | |||||||||||||||
Salaries and employee benefits | 8,452 | 7,406 | 16,717 | 14,968 | |||||||||||
Occupancy and equipment expense | 1,200 | 864 | 2,052 | 1,752 | |||||||||||
Professional fees | 464 | 394 | 979 | 915 | |||||||||||
Data processing fees | 1,216 | 1,099 | 2,320 | 2,174 | |||||||||||
Marketing expense | 219 | 158 | 395 | 350 | |||||||||||
Loan acquisition and collection expense | 749 | 211 | 1,390 | 2,459 | |||||||||||
144 | 120 | 241 | 200 | ||||||||||||
Other noninterest expense | 1,260 | 935 | 2,243 | 1,708 | |||||||||||
Total noninterest expense | 13,704 | 11,187 | 26,337 | 24,526 | |||||||||||
Income before income tax expense | 16,024 | 16,430 | 27,849 | 30,515 | |||||||||||
Income tax expense | 4,726 | 5,027 | 8,264 | 9,236 | |||||||||||
Net income | $ | 11,298 | $ | 11,403 | $ | 19,585 | $ | 21,279 | |||||||
Weighted-average shares outstanding: | |||||||||||||||
Basic | 7,256,281 | 7,952,938 | 7,305,331 | 8,012,106 | |||||||||||
Diluted | 7,323,402 | 8,041,476 | 7,379,790 | 8,096,728 | |||||||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 1.56 | $ | 1.43 | $ | 2.68 | $ | 2.66 | |||||||
Diluted | 1.54 | 1.42 | 2.65 | 2.63 | |||||||||||
Cash dividends declared per common share | $ | 0.01 | $ | 0.01 | $ | 0.02 | $ | 0.02 | |||||||
AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||
Interest | Average | Interest | Average | ||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||
Assets: | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Investment securities | $ | 60,402 | $ | 270 | 1.77 | % | $ | 65,444 | $ | 76 | 0.46 | % | |||||||||
Loans (1) (2) (3) | 1,723,324 | 37,228 | 8.57 | % | 1,133,421 | 21,195 | 7.42 | % | |||||||||||||
4,549 | 47 | 4.10 | % | 1,222 | 6 | 1.95 | % | ||||||||||||||
Short-term investments (4) | 170,756 | 1,656 | 3.85 | % | 319,639 | 112 | 0.14 | % | |||||||||||||
Total interest-earning assets | 1,959,031 | 39,201 | 7.94 | % | 1,519,726 | 21,389 | 5.58 | % | |||||||||||||
Cash and due from banks | 2,495 | 2,734 | |||||||||||||||||||
Other non-interest earning assets | 143,481 | 61,013 | |||||||||||||||||||
Total assets | $ | 2,105,007 | $ | 1,583,473 | |||||||||||||||||
Liabilities & Shareholders' Equity: | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
NOW accounts | $ | 551,998 | $ | 3,575 | 2.57 | % | $ | 288,599 | $ | 192 | 0.26 | % | |||||||||
Money market accounts | 243,953 | 805 | 1.31 | % | 264,731 | 197 | 0.30 | % | |||||||||||||
Savings accounts | 124,990 | 356 | 1.13 | % | 101,204 | 124 | 0.49 | % | |||||||||||||
Time deposits | 621,248 | 5,160 | 3.30 | % | 225,801 | 671 | 1.18 | % | |||||||||||||
Total interest-bearing deposits | 1,542,189 | 9,896 | 2.55 | % | 880,335 | 1,184 | 0.53 | % | |||||||||||||
83,560 | 538 | 2.55 | % | 15,000 | 127 | 3.36 | % | ||||||||||||||
Lease liability | 16,679 | 15 | 0.36 | % | 5,446 | 23 | 1.68 | % | |||||||||||||
Total interest-bearing liabilities | 1,642,428 | 10,449 | 2.52 | % | 900,781 | 1,334 | 0.59 | % | |||||||||||||
Non-interest bearing liabilities: | |||||||||||||||||||||
Demand deposits and escrow accounts | 195,907 | 427,550 | |||||||||||||||||||
Other liabilities | 10,226 | 14,072 | |||||||||||||||||||
Total liabilities | 1,848,561 | 1,342,403 | |||||||||||||||||||
Shareholders' equity | 256,446 | 241,070 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,105,007 | $ | 1,583,473 | |||||||||||||||||
Net interest income | $ | 28,752 | $ | 20,055 | |||||||||||||||||
Interest rate spread | 5.42 | % | 4.99 | % | |||||||||||||||||
Net interest margin (5) | 5.82 | % | 5.24 | % | |||||||||||||||||
Cost of funds (6) | 2.26 | % | 0.40 | % | |||||||||||||||||
(1) Interest income and yield are stated on a fully tax-equivalent basis using the statutory tax rate.
(2) Includes loans held for sale.
(3) Nonaccrual loans are included in the computation of average, but unpaid interest has not been included for purposes of determining interest income.
(4) Short-term investments include FHLB overnight deposits and other interest-bearing deposits.
(5) Net interest margin is calculated as net interest income divided by total interest-earning assets.
(6) Cost of funds is calculated as total interest expense divided by total interest-bearing liabilities plus demand deposits and escrow accounts.
AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||
Interest | Average | Interest | Average | ||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||
Assets: | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Investment securities | $ | 61,064 | $ | 419 | 1.36 | % | $ | 65,994 | $ | 170 | 0.51 | % | |||||||||
Loans (1) (2) (3) | 1,545,498 | 63,307 | 8.13 | % | 1,097,124 | 41,188 | 7.45 | % | |||||||||||||
4,069 | 61 | 2.97 | % | 1,216 | 13 | 2.12 | % | ||||||||||||||
Short-term investments (4) | 156,123 | 2,278 | 2.89 | % | 381,543 | 279 | 0.15 | % | |||||||||||||
Total interest-earning assets | 1,766,754 | 66,065 | 7.42 | % | 1,545,877 | 41,650 | 5.34 | % | |||||||||||||
Cash and due from banks | 2,514 | 2,774 | |||||||||||||||||||
Other non-interest earning assets | 94,831 | 55,409 | |||||||||||||||||||
Total assets | $ | 1,864,099 | $ | 1,604,060 | |||||||||||||||||
Liabilities & Shareholders' Equity: | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
NOW accounts | $ | 522,845 | $ | 5,169 | 1.96 | % | $ | 279,316 | $ | 367 | 0.26 | % | |||||||||
Money market accounts | 247,304 | 1,211 | 0.97 | % | 270,318 | 399 | 0.29 | % | |||||||||||||
Savings accounts | 131,191 | 567 | 0.86 | % | 86,432 | 193 | 0.44 | % | |||||||||||||
Time deposits | 387,480 | 5,751 | 2.94 | % | 242,887 | 1,533 | 1.25 | % | |||||||||||||
Total interest-bearing deposits | 1,288,820 | 12,698 | 1.95 | % | 878,953 | 2,492 | 0.56 | % | |||||||||||||
72,949 | 933 | 2.54 | % | 15,000 | 255 | 3.37 | % | ||||||||||||||
Capital lease obligations | 10,429 | 33 | 0.63 | % | 5,632 | 49 | 1.73 | % | |||||||||||||
Total interest-bearing liabilities | 1,372,198 | 13,664 | 1.98 | % | 899,585 | 2,796 | 0.62 | % | |||||||||||||
Non-interest bearing liabilities: | |||||||||||||||||||||
Demand deposits and escrow accounts | 228,800 | 449,500 | |||||||||||||||||||
Other liabilities | 9,118 | 17,119 | |||||||||||||||||||
Total liabilities | 1,610,116 | 1,366,204 | |||||||||||||||||||
Shareholders' equity | 253,983 | 237,856 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,864,099 | $ | 1,604,060 | |||||||||||||||||
Net interest income | $ | 52,401 | $ | 38,854 | |||||||||||||||||
Interest rate spread | 5.44 | % | 4.72 | % | |||||||||||||||||
Net interest margin (5) | 5.88 | % | 4.99 | % | |||||||||||||||||
Cost of funds (6) | 1.69 | % | 0.41 | % | |||||||||||||||||
(1) Interest income and yield are stated on a fully tax-equivalent basis using the statutory tax rate.
(2) Includes loans held for sale.
(3) Nonaccrual loans are included in the computation of average, but unpaid interest has not been included for purposes of determining interest income.
(4) Short-term investments include FHLB overnight deposits and other interest-bearing deposits.
(5) Net interest margin is calculated as net interest income divided by total interest-earning assets.
(6) Cost of funds is calculated as total interest expense divided by total interest-bearing liabilities plus demand deposits and escrow accounts.
SELECTED FINANCIAL HIGHLIGHTS AND OTHER DATA | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(Dollars in thousands, except share and per share data) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
Net interest income | $ | 28,752 | $ | 23,649 | $ | 23,619 | $ | 20,952 | $ | 20,055 | |||||||||
Provision (credit) for loan losses | 325 | 850 | (879 | ) | (287 | ) | (1,069 | ) | |||||||||||
Noninterest income | 1,301 | 1,659 | 4,144 | 5,408 | 6,493 | ||||||||||||||
Noninterest expense | 13,704 | 12,634 | 12,856 | 11,401 | 11,187 | ||||||||||||||
Net income | 11,298 | 8,287 | 10,296 | 10,587 | 11,403 | ||||||||||||||
Weighted-average common shares outstanding: | |||||||||||||||||||
Basic | 7,256,281 | 7,312,291 | 7,506,465 | 7,687,737 | 7,952,938 | ||||||||||||||
Diluted | 7,323,402 | 7,394,089 | 7,617,933 | 7,790,963 | 8,041,476 | ||||||||||||||
Earnings per common share: | |||||||||||||||||||
Basic | $ | 1.56 | $ | 1.13 | $ | 1.37 | $ | 1.38 | $ | 1.43 | |||||||||
Diluted | 1.54 | 1.12 | 1.35 | 1.36 | 1.42 | ||||||||||||||
Dividends declared per common share | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | |||||||||
Return on average assets | 2.13 | % | 2.03 | % | 2.68 | % | 2.79 | % | 2.86 | % | |||||||||
Return on average equity | 17.48 | % | 13.07 | % | 16.55 | % | 17.57 | % | 18.77 | % | |||||||||
Net interest rate spread (1) | 5.42 | % | 5.61 | % | 6.14 | % | 5.52 | % | 4.99 | % | |||||||||
Net interest margin (2) | 5.82 | % | 5.96 | % | 6.34 | % | 5.71 | % | 5.24 | % | |||||||||
Net interest margin, excluding collection account (Non-GAAP) (3) | 5.85 | % | 6.22 | % | 7.07 | % | 6.72 | % | 6.44 | % | |||||||||
Efficiency ratio (non-GAAP) (4) | 45.60 | % | 49.92 | % | 46.31 | % | 43.25 | % | 42.14 | % | |||||||||
Noninterest expense to average total assets | 2.58 | % | 3.09 | % | 3.34 | % | 3.01 | % | 2.80 | % | |||||||||
Average interest-earning assets to average interest-bearing liabilities | 119.28 | % | 142.88 | % | 156.64 | % | 167.20 | % | 168.71 | % | |||||||||
As of: | |||||||||||||||||||
Nonperforming loans: | |||||||||||||||||||
Originated portfolio: | |||||||||||||||||||
Residential real estate | $ | 448 | $ | 520 | $ | 550 | $ | 621 | $ | 611 | |||||||||
Commercial real estate | 3,297 | 3,528 | 5,031 | 6,608 | 7,963 | ||||||||||||||
Commercial and industrial | 631 | 452 | 202 | 230 | 311 | ||||||||||||||
Consumer | 8 | 8 | 11 | 12 | 20 | ||||||||||||||
Total originated portfolio | 4,384 | 4,508 | 5,794 | 7,471 | 8,905 | ||||||||||||||
Total purchased portfolio | 8,515 | 9,089 | 7,152 | 10,441 | 12,294 | ||||||||||||||
Total nonperforming loans | 12,899 | 13,597 | 12,946 | 17,912 | 21,199 | ||||||||||||||
Real estate owned and other repossessed collateral, net | - | 90 | - | - | 53 | ||||||||||||||
Total nonperforming assets | $ | 12,899 | $ | 13,687 | $ | 12,946 | $ | 17,912 | $ | 21,252 | |||||||||
Past due loans to total loans | 0.74 | % | 0.97 | % | 0.53 | % | 1.07 | % | 1.23 | % | |||||||||
Nonperforming loans to total loans | 0.51 | % | 0.93 | % | 0.99 | % | 1.45 | % | 1.79 | % | |||||||||
Nonperforming assets to total assets | 0.46 | % | 0.79 | % | 0.82 | % | 1.14 | % | 1.46 | % | |||||||||
Allowance for loan losses to total loans | 0.26 | % | 0.40 | % | 0.39 | % | 0.47 | % | 0.51 | % | |||||||||
Allowance for loan losses to nonperforming loans | 49.70 | % | 43.38 | % | 38.34 | % | 32.47 | % | 28.49 | % | |||||||||
Commercial real estate loans to total capital (5) | 661.48 | % | 328.35 | % | 294.20 | % | 252.90 | % | 260.40 | % | |||||||||
Net loans to deposits (6) | 113.74 | % | 109.78 | % | 100.94 | % | 97.19 | % | 102.53 | % | |||||||||
Purchased loans to total loans (7) | 59.23 | % | 32.62 | % | 36.61 | % | 38.94 | % | 41.02 | % | |||||||||
Equity to total assets | 9.38 | % | 14.47 | % | 15.69 | % | 15.80 | % | 16.39 | % | |||||||||
Common equity tier 1 capital ratio | 10.84 | % | 17.36 | % | 19.08 | % | 20.13 | % | 20.27 | % | |||||||||
Total capital ratio | 11.11 | % | 17.77 | % | 19.47 | % | 20.60 | % | 20.79 | % | |||||||||
Tier 1 leverage capital ratio | 12.53 | % | 15.59 | % | 16.13 | % | 16.17 | % | 15.19 | % | |||||||||
Total shareholders' equity | $ | 263,427 | $ | 252,163 | $ | 248,321 | $ | 247,469 | $ | 239,237 | |||||||||
Less: Preferred stock | - | - | - | - | - | ||||||||||||||
Common shareholders' equity | 263,427 | 252,163 | 248,321 | 247,469 | 239,237 | ||||||||||||||
Less: Intangible assets (8) | - | (1,141 | ) | (1,285 | ) | (1,696 | ) | (1,645 | ) | ||||||||||
Tangible common shareholders' equity (non-GAAP) | $ | 263,427 | $ | 251,022 | $ | 247,036 | $ | 245,773 | $ | 237,592 | |||||||||
Common shares outstanding | 7,511,044 | 7,477,158 | 7,442,103 | 7,727,312 | 7,815,566 | ||||||||||||||
Book value per common share | $ | 35.07 | $ | 33.72 | $ | 33.37 | $ | 32.03 | $ | 30.61 | |||||||||
Tangible book value per share (non-GAAP) (9) | 35.07 | 33.57 | 33.19 | 31.81 | 30.40 | ||||||||||||||
(1) The net interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted-average cost of interest-bearing liabilities for the period.
(2) The net interest margin represents net interest income as a percent of average interest-earning assets for the period
(3) Net interest margin excluding collection account removes the effects of the cash held by the Bank from the correspondent’s collection account in short-term investments, which had an average balance of
(4) The efficiency ratio represents noninterest expense divided by the sum of net interest income (before provision for loan losses) plus noninterest income.
(5) For purposes of calculating this ratio, commercial real estate includes all non-owner occupied commercial real estate loans defined as such by regulatory guidance, including all land development and construction loans. Beginning with the quarter ended December 31, 2022 and going forward, the Bank removed this internal policy limit (previously 500%).
(6) During the quarter ended
(7) Beginning with the quarter ended
(8) Includes the loan servicing rights asset. Beginning with the quarter ended
(9) Tangible book value per share represents total shareholders' equity less the sum of preferred stock and intangible assets divided by common shares outstanding.
For More Information:
207.786.3245 ext. 3220
www.northeastbank.com
Source:
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