8-K
ISABELLA BANK CORP (ISBA)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 22, 2021
ISABELLA BANK CORPORATION
(Exact name of registrant as specified in its charter)
| MICHIGAN | 000-18415 | 38-2830092 | |||
|---|---|---|---|---|---|
| (State or other jurisdiction<br>of incorporation) | (Commission<br>File Number) | (IRS Employer<br>Identification No.) | 401 North Main Street, Mt. Pleasant, Michigan | 48858-1649 | |
| --- | --- | ||||
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (989) 772-9471
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | | --- | --- || ¨ | Soliciting material pursuant to Rule l4a-12 under the Exchange Act (17 CFR 240.l4a-l2) | | --- | --- || ¨ | Pre-commencement communications pursuant to Rule l4d-2(b) under the Exchange Act (17 CFR 240.l4d-2(b)) | | --- | --- || ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.l3e-4(c)) | | --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br>Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| None | N/A | N/A |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | ¨ |
|---|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Section 2 - Financial Information
Item 2.02 Results of Operations and Financial Condition.
On April 22, 2021, Isabella Bank Corporation issued a press release announcing its results of operations for the quarter ended March 31, 2021.
A copy of the press release is filed as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.
The information in this Item 2.02 of Form 8-K and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing made by the registrant under the Securities Act of 1933, whether made before or after the date hereof, except as shall be expressly set forth by specific reference in such filing.
Section 9 - Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
| Exhibit<br>No. | Description |
|---|---|
| 99.1 | Press release issuedApril 22, 2021 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ISABELLA BANK CORPORATION | |||
|---|---|---|---|
| Dated: | April 22, 2021 | By: | /s/ Jae A. Evans |
| Jae A. Evans, President & CEO |
Document
Exhibit 99.1
For Immediate Release
Isabella Bank Corporation
401 North Main Street
Mt. Pleasant, MI 48858-1649
FOR MORE INFORMATION CONTACT:
Mary Olivieri, Community Relations Officer
Phone: 989-779-6309 Fax: 989-775-5501
Isabella Bank Corporation Announces First Quarter 2021 Earnings
Strong results reflect strategic moves; loan portfolio metrics remain strong
Mt. Pleasant, Michigan, April 22, 2021 — Isabella Bank Corporation (the "Corporation") (OTCQX: ISBA) released its earnings results for the first quarter of 2021. The Corporation reported net income of $5.4 million and earnings per common share of $0.68.
First quarter 2021 highlights include:
•Net interest income was $13.2 million in the first quarter of 2021 and increased $1.2 million when compared to the same period in 2020.
•Elimination of debt and higher-cost funding throughout 2020 and a decline in interest rates led to a $2.1 million decline in interest expenses in the first quarter of 2021 compared to the same period in 2020.
•Provision for loan losses decreased $1.3 million compared to the first quarter of 2020 due largely to improving credit quality indicators and economic factors.
•Total deposits increased $77.3 million in the first quarter of 2021.
•Outstanding shares of ISBA stock have declined nearly 40,000 since December 31, 2020, as part of a buyback program and changes in the dividend reinvestment plan. The goal is to improve key metrics that positively affect shareholder value and price.
“Isabella Bank Corporation started 2021 with a strong first quarter that reflects the rebounding strength of our communities and the positive returns from the intentional actions we’ve taken in alignment with our five-year strategic plan,” said Jae A. Evans, President and Chief Executive Officer of the Corporation.
“New initiatives designed to support the changing needs of our customers, leverage the interest rate environment and improve key metrics were leading contributors to our excellent results in the first quarter.”
Net income
Net income for the first quarter 2021 was $5.4 million compared to $3.1 million in the first quarter of 2020.
Net interest income: Net interest income for the first quarter increased by $1.2 million compared to the same period in 2020. Net interest income has been up from March 2020 in each of the last four quarters due largely to PPP loans. Income from PPP interest totaled $2.3 million in 2020 and $1.2 million in the first quarter of 2021.
Noninterest income and expenses: Net gain on sold mortgage loans is a key reason noninterest income increased $534,000 in the first quarter compared to the same period in 2020. Ongoing operating expense controls led to noninterest expenses declining $128,000 compared to the first quarter of 2020.
Net yield on interest earning assets: The Corporation’s fully taxable equivalent net yield on interest earning assets was 2.98% for the first quarter of 2021, the same percentage recorded in the first quarter of 2020. The Corporation’s banking subsidiary, Isabella Bank (the “Bank”), implemented strategic programs focused on improving the net yield on interest-earning assets, which included enhanced pricing related to loans and a reduced reliance on higher-cost borrowed funds and brokered deposits. These efforts have helped offset the year-long, low-interest-rate environment. As the economy recovers and interest rates rise, improvement in the yield on interest-earning assets is expected.
Assets
Total assets were $2 billion as of March 31, 2021, and assets under management were $2.8 billion. Assets under management are up $335.2 million, or 13.8%, in comparison to March 31, 2020.
Assets under management include loans sold and serviced of $298.5 million, investment and trust assets managed by Isabella Wealth of $454.5 million and assets on the consolidated balance sheet.
The securities portfolio increased $28.1 million in the first quarter of 2021 due primarily to purchases of U.S. Treasury securities.
Loans
Loans outstanding as of March 31, 2021, totaled $1.2 billion. During the first quarter 2021, gross loans declined $42.4 million, largely driven by reduced volume in advances to mortgage brokers. A second round of participation in the Small Business Administration's Paycheck Protection Program resulted in advances of more than 650 PPP loans totaling $49.9 million in the first quarter of 2021.
Deposits
Total deposits were $1.6 billion at the end of the first quarter 2021, an increase of $321.5 million compared to the same period in 2020. The increase of deposits is largely the result of PPP loan proceeds and from customers receiving government stimulus checks.
Liquidity
The Corporation's liquidity position remains strong as evidenced by its $740 million of cash and available funds as of March 31, 2021. This total is comprised of $322 million in cash and cash equivalents, $219 million in available lines of credit and approximately $200 million in unencumbered investment securities.
Capital
The Bank is designated as a “well capitalized” institution, as its capital ratios exceeded the minimum requirements for this designation. As of March 31, 2021, the Bank’s Tier 1 Leverage Ratio was 8.3%, Tier 1 Capital Ratio was 13.2% and Total Capital Ratio was 14.0%. From a consolidated perspective, the Corporation's Tier 1 Leverage Ratio was 8.6%, Tier 1 Capital Ratio was 13.8% and Total Capital Ratio was 14.5% as of March 31, 2021. The minimum requirements to be considered well capitalized are a Tier 1 Leverage Ratio of 5.0%, Tier 1 Capital Ratio of 8.0% and Total Capital Ratio of 10.0%.
Dividend
During the first quarter of 2021, the Corporation paid a $0.27 per common share cash dividend. Based on the Corporation's closing stock price of $21.75 as of March 31, 2021, the annualized cash dividend yield was 4.97%.
About the Corporation
Isabella Bank Corporation (OTCQX: ISBA) is the parent holding company of Isabella Bank, a state chartered community bank headquartered in Mt. Pleasant, Michigan. Isabella Bank was established in 1903 and has been committed to serving the local banking needs of its customers and communities for 118 years. The Bank offers personal and commercial lending and deposit products, as well as investment, trust, and estate planning services through Isabella Wealth. The Bank has locations throughout seven Mid-Michigan counties: Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw.
For more information about Isabella Bank Corporation, visit the Investors link at www.isabellabank.com. Isabella Bank Corporation common stock is quoted on the OTCQX tier of the OTC Markets Group, Inc.’s electronic quotation system (www.otcmarkets.com) under the symbol “ISBA.” The Corporation's market maker is Boenning & Scattergood, Inc. (www.boenninginc.com), its investor relations firm is Renmark Financial Communications, Inc. (www.renmarkfinancial.com), and analyst coverage is provided by Piper Sander Companies (www.pipersandler.com).
Forward-Looking Statements
This press release includes forward-looking statements. To the extent that the foregoing information refers to matters that may occur in the future, please be aware that such forward-looking statements may differ materially from actual results. Additional information concerning some of the factors that could cause materially different results is included in the sections entitled "Risk Factors" and "Forward Looking Statements" set forth in Isabella Bank Corporation's filings with the Securities and Exchange Commission, which are available from the Securities and Exchange Commission's Public Reference facilities and from its website at www.sec.gov.
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
| March 31<br>2021 | December 31<br>2020 | |||
|---|---|---|---|---|
| ASSETS | ||||
| Cash and cash equivalents | ||||
| Cash and demand deposits due from banks | $ | 25,775 | $ | 31,296 |
| Interest bearing balances due from banks | 295,792 | 215,344 | ||
| Total cash and cash equivalents | 321,567 | 246,640 | ||
| Available-for-sale securities, at fair value | 367,324 | 339,228 | ||
| Mortgage loans available-for-sale | 1,965 | 2,741 | ||
| Loans | ||||
| Commercial | 725,540 | 756,686 | ||
| Agricultural | 91,629 | 100,461 | ||
| Residential real estate | 305,909 | 307,543 | ||
| Consumer | 72,840 | 73,621 | ||
| Gross loans | 1,195,918 | 1,238,311 | ||
| Less allowance for loan and lease losses | 9,271 | 9,744 | ||
| Net loans | 1,186,647 | 1,228,567 | ||
| Premises and equipment | 24,886 | 25,140 | ||
| Corporate owned life insurance policies | 28,057 | 28,292 | ||
| Accrued interest receivable | 6,422 | 6,882 | ||
| Equity securities without readily determinable fair values | 17,383 | 17,383 | ||
| Goodwill and other intangible assets | 48,324 | 48,331 | ||
| Other assets | 12,857 | 14,174 | ||
| TOTAL ASSETS | $ | 2,015,432 | $ | 1,957,378 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
| Deposits | ||||
| Noninterest bearing | $ | 404,710 | $ | 375,395 |
| Interest bearing demand deposits | 328,440 | 302,444 | ||
| Certificates of deposit under $250 and other savings | 823,916 | 781,286 | ||
| Certificates of deposit over $250 | 86,515 | 107,192 | ||
| Total deposits | 1,643,581 | 1,566,317 | ||
| Borrowed funds | 141,967 | 158,747 | ||
| Accrued interest payable and other liabilities | 11,602 | 13,726 | ||
| Total liabilities | 1,797,150 | 1,738,790 | ||
| Shareholders’ equity | ||||
| Common stock — no par value 15,000,000 shares authorized; issued and outstanding 7,958,883 shares (including 65,274 shares held in the Rabbi Trust) in 2021 and 7,997,247 shares (including 59,162 shares held in the Rabbi Trust) in 2020 | 141,366 | 142,247 | ||
| Shares to be issued for deferred compensation obligations | 4,272 | 4,183 | ||
| Retained earnings | 67,728 | 64,460 | ||
| Accumulated other comprehensive income | 4,916 | 7,698 | ||
| Total shareholders’ equity | 218,282 | 218,588 | ||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 2,015,432 | $ | 1,957,378 |
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands except per share amounts)
| Three Months Ended <br> March 31 | |||||
|---|---|---|---|---|---|
| 2021 | 2020 | ||||
| Interest income | |||||
| Loans, including fees | $ | 13,097 | $ | 13,254 | |
| Available-for-sale securities | |||||
| Taxable | 1,165 | 1,489 | |||
| Nontaxable | 865 | 1,053 | |||
| Federal funds sold and other | 163 | 405 | |||
| Total interest income | 15,290 | 16,201 | |||
| Interest expense | |||||
| Deposits | 1,668 | 2,791 | |||
| Borrowings | 421 | 1,408 | |||
| Total interest expense | 2,089 | 4,199 | |||
| Net interest income | 13,201 | 12,002 | |||
| Provision for loan losses | (523) | 788 | |||
| Net interest income after provision for loan losses | 13,724 | 11,214 | |||
| Noninterest income | |||||
| Service charges and fees | 1,695 | 1,353 | |||
| Net gain on sale of mortgage loans | 745 | 151 | |||
| Wealth management fees | 696 | 572 | |||
| Earnings on corporate owned life insurance policies | 186 | 182 | |||
| Gains from redemption of corporate owned life insurance policies | 146 | 524 | |||
| Other | 64 | 216 | |||
| Total noninterest income | 3,532 | 2,998 | |||
| Noninterest expenses | |||||
| Compensation and benefits | 5,877 | 5,869 | |||
| Furniture and equipment | 1,373 | 1,461 | |||
| Occupancy | 945 | 867 | |||
| Other | 2,622 | 2,748 | |||
| Total noninterest expenses | 10,817 | 10,945 | |||
| Income before federal income tax expense | 6,439 | 3,267 | |||
| Federal income tax expense | 1,041 | 203 | |||
| NET INCOME | $ | 5,398 | $ | 3,064 | |
| Earnings per common share | |||||
| Basic | $ | 0.68 | $ | 0.39 | |
| Diluted | $ | 0.67 | $ | 0.38 | |
| Cash dividends per common share | $ | 0.27 | $ | 0.27 |
AVERAGE BALANCES, INTEREST RATE, AND NET INTEREST INCOME (UNAUDITED)
(Dollars in thousands)
The following schedules present the daily average amount outstanding for each major category of interest earning assets, non-earning assets, interest bearing liabilities, and noninterest bearing liabilities. These schedules also present an analysis of interest income and interest expense for the periods indicated. All interest income is reported on a fully taxable equivalent FTE basis using a federal income tax rate of 21%. Loans in nonaccrual status, for the purpose of the following computations, are included in the average loan balances. Federal Reserve Bank (FRB) and Federal Home Loan Bank (FHLB) restricted equity holdings are included in other interest earning assets.
| Three Months Ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, 2021 | March 31, 2020 | |||||||||||
| Average<br>Balance | Tax<br>Equivalent<br>Interest | Average<br>Yield /<br>Rate | Average<br>Balance | Tax<br>Equivalent<br>Interest | Average<br>Yield /<br>Rate | |||||||
| INTEREST EARNING ASSETS | ||||||||||||
| Loans | $ | 1,201,693 | $ | 13,097 | 4.36 | % | $ | 1,168,070 | $ | 13,254 | 4.54 | % |
| Taxable investment securities | 190,450 | 1,165 | 2.45 | % | 251,797 | 1,489 | 2.37 | % | ||||
| Nontaxable investment securities | 131,850 | 1,194 | 3.62 | % | 152,368 | 1,418 | 3.72 | % | ||||
| Fed funds sold | 2 | — | — | % | — | — | — | % | ||||
| Other | 295,104 | 163 | 0.22 | % | 90,297 | 405 | 1.79 | % | ||||
| Total earning assets | 1,819,099 | 15,619 | 3.43 | % | 1,662,532 | 16,566 | 3.99 | % | ||||
| NONEARNING ASSETS | ||||||||||||
| Allowance for loan losses | (9,833) | (7,968) | ||||||||||
| Cash and demand deposits due from banks | 28,944 | 21,556 | ||||||||||
| Premises and equipment | 25,151 | 26,252 | ||||||||||
| Accrued income and other assets | 113,101 | 110,786 | ||||||||||
| Total assets | $ | 1,976,462 | $ | 1,813,158 | ||||||||
| INTEREST BEARING LIABILITIES | ||||||||||||
| Interest bearing demand deposits | $ | 315,189 | $ | 77 | 0.10 | % | $ | 235,161 | $ | 83 | 0.14 | % |
| Savings deposits | 531,302 | 149 | 0.11 | % | 426,634 | 634 | 0.59 | % | ||||
| Time deposits | 367,892 | 1,442 | 1.57 | % | 404,717 | 2,074 | 2.05 | % | ||||
| Borrowed funds | 144,145 | 421 | 1.17 | % | 270,648 | 1,408 | 2.08 | % | ||||
| Total interest bearing liabilities | 1,358,528 | 2,089 | 0.62 | % | 1,337,160 | 4,199 | 1.26 | % | ||||
| NONINTEREST BEARING LIABILITIES | ||||||||||||
| Demand deposits | 383,189 | 246,262 | ||||||||||
| Other | 13,910 | 14,130 | ||||||||||
| Shareholders’ equity | 220,835 | 215,606 | ||||||||||
| Total liabilities and shareholders’ equity | $ | 1,976,462 | $ | 1,813,158 | ||||||||
| Net interest income (FTE) | $ | 13,530 | $ | 12,367 | ||||||||
| Net yield on interest earning assets (FTE) | 2.98 | % | 2.98 | % |
SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars in thousands except per share amounts)
| Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| March 31<br>2021 | March 31<br>2020 | March 31<br>2019 | |||||||
| PER SHARE | |||||||||
| Basic earnings | $ | 0.68 | $ | 0.39 | $ | 0.44 | |||
| Diluted earnings | $ | 0.67 | $ | 0.38 | $ | 0.43 | |||
| Dividends | $ | 0.27 | $ | 0.27 | $ | 0.26 | |||
| Tangible book value | $ | 21.35 | $ | 21.10 | $ | 19.47 | |||
| Quoted market value | |||||||||
| High | $ | 22.50 | $ | 24.50 | $ | 24.50 | |||
| Low | $ | 19.45 | $ | 16.00 | $ | 22.25 | |||
| Close (1) | $ | 21.75 | $ | 18.00 | $ | 23.75 | |||
| Common shares outstanding (1) | 7,958,883 | 7,921,291 | 7,906,078 | ||||||
| Average number of common shares outstanding | 7,969,462 | 7,892,421 | 7,888,885 | ||||||
| Average number of diluted common shares outstanding | 8,088,524 | 8,055,607 | 8,088,341 | ||||||
| PERFORMANCE RATIOS | |||||||||
| Return on average total assets | 1.09 | % | 0.68 | % | 0.77 | % | |||
| Return on average shareholders' equity | 9.78 | % | 5.68 | % | 7.00 | % | |||
| Return on average tangible shareholders' equity | 12.53 | % | 7.35 | % | 9.29 | % | |||
| Net interest margin yield (FTE) | 2.98 | % | 2.98 | % | 3.02 | % | |||
| ASSETS UNDER MANAGEMENT (1) | |||||||||
| Loans sold with servicing retained | $ | 298,514 | $ | 257,285 | $ | 259,127 | |||
| Assets managed by Isabella Wealth | $ | 454,459 | $ | 359,968 | $ | 475,560 | |||
| Total assets under management | $ | 2,768,405 | $ | 2,433,157 | $ | 2,541,661 | |||
| ASSET QUALITY (1) | |||||||||
| Nonaccrual status loans | $ | 4,532 | $ | 6,913 | $ | 7,260 | |||
| Performing TDRs | $ | 28,947 | $ | 20,228 | $ | 22,305 | |||
| Foreclosed assets | $ | 384 | $ | 564 | $ | 401 | |||
| Net loan charge-offs (recoveries) | $ | (50) | $ | 30 | $ | 11 | |||
| Nonperforming loans to gross loans | 0.38 | % | 0.59 | % | 0.64 | % | |||
| Nonperforming assets to total assets | 0.26 | % | 0.43 | % | 0.44 | % | |||
| ALLL to gross loans | 0.78 | % | 0.74 | % | 0.73 | % | |||
| CAPITAL RATIOS (1) | |||||||||
| Shareholders' equity to assets | 10.83 | % | 11.87 | % | 11.20 | % | |||
| Tier 1 leverage | 8.56 | % | 9.09 | % | 8.91 | % | |||
| Common equity tier 1 capital | 13.77 | % | 12.72 | % | 12.45 | % | |||
| Tier 1 risk-based capital | 13.77 | % | 12.72 | % | 12.45 | % | |||
| Total risk-based capital | 14.54 | % | 13.41 | % | 13.12 | % |
(1) At end of period
SUPPLEMENTAL BALANCE SHEET DATA (UNAUDITED)
(Dollars in thousands)
| March 31<br>2021 | December 31<br>2020 | September 30<br>2020 | June 30<br>2020 | March 31<br>2020 | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Commercial | $ | 725,540 | $ | 756,686 | $ | 821,102 | $ | 799,632 | $ | 695,278 | ||||||||||||
| Agricultural | 91,629 | 100,461 | 102,263 | 103,162 | 108,856 | |||||||||||||||||
| Residential real estate | 305,909 | 307,543 | 304,559 | 307,926 | 302,016 | |||||||||||||||||
| Consumer | 72,840 | 73,621 | 75,384 | 73,665 | 69,786 | |||||||||||||||||
| Gross loans | $ | 1,195,918 | $ | 1,238,311 | $ | 1,303,308 | $ | 1,284,385 | $ | 1,175,936 | March 31<br>2021 | December 31<br>2020 | September 30<br>2020 | June 30<br>2020 | March 31<br>2020 | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||
| Noninterest bearing demand deposits | $ | 404,710 | $ | 375,395 | $ | 353,082 | $ | 340,321 | $ | 249,424 | ||||||||||||
| Interest bearing demand deposits | 328,440 | 302,444 | 287,809 | 263,567 | 237,392 | |||||||||||||||||
| Savings deposits | 555,688 | 505,497 | 474,483 | 458,167 | 435,207 | |||||||||||||||||
| Certificates of deposit | 331,413 | 358,165 | 354,210 | 352,118 | 358,534 | |||||||||||||||||
| Brokered certificates of deposit | 14,029 | 14,029 | 14,029 | 14,029 | 27,458 | |||||||||||||||||
| Internet certificates of deposit | 9,301 | 10,787 | 11,482 | 12,476 | 14,068 | |||||||||||||||||
| Total deposits | $ | 1,643,581 | $ | 1,566,317 | $ | 1,495,095 | $ | 1,440,678 | $ | 1,322,083 | March 31<br>2021 | December 31<br>2020 | September 30<br>2020 | June 30<br>2020 | March 31<br>2020 | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||
| U.S. Treasury | $ | 29,371 | $ | — | $ | — | $ | — | $ | — | ||||||||||||
| States and political subdivisions | 140,329 | 143,656 | 148,401 | 146,785 | 163,116 | |||||||||||||||||
| Auction rate money market preferred | 3,224 | 3,237 | 3,194 | 2,979 | 2,726 | |||||||||||||||||
| Mortgage-backed securities | 75,835 | 88,652 | 104,165 | 119,029 | 126,554 | |||||||||||||||||
| Collateralized mortgage obligations | 116,865 | 101,983 | 107,294 | 111,621 | 114,793 | |||||||||||||||||
| Corporate | 1,700 | 1,700 | — | — | — | |||||||||||||||||
| Available-for-sale securities, at fair value | $ | 367,324 | $ | 339,228 | $ | 363,054 | $ | 380,414 | $ | 407,189 | March 31<br>2021 | December 31<br>2020 | September 30<br>2020 | June 30<br>2020 | March 31<br>2020 | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||
| FHLB advances | $ | 90,000 | $ | 90,000 | $ | 205,000 | $ | 205,000 | $ | 235,000 | ||||||||||||
| Securities sold under agreements to repurchase without stated maturity dates | 51,967 | 68,747 | 33,349 | 31,268 | 28,171 | |||||||||||||||||
| Borrowed funds | $ | 141,967 | $ | 158,747 | $ | 238,349 | $ | 236,268 | $ | 263,171 |
SUPPLEMENTAL STATEMENTS OF INCOME DATA (UNAUDITED)
(Dollars in thousands)
| Three Months Ended March 31 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | |||||||||
| Service charges and fees | ||||||||||
| ATM and debit card fees | $ | 999 | $ | 794 | ||||||
| Service charges and fees on deposit accounts | 436 | 587 | ||||||||
| Freddie Mac servicing fee | 214 | 159 | ||||||||
| Net OMSR income (loss) | (32) | (261) | ||||||||
| Other fees for customer services | 78 | 74 | ||||||||
| Total service charges and fees | 1,695 | 1,353 | ||||||||
| Net gain on sale of mortgage loans | 745 | 151 | ||||||||
| Wealth management fees | 696 | 572 | ||||||||
| Earnings on corporate owned life insurance policies | 186 | 182 | ||||||||
| Gains from redemption of corporate owned life insurance policies | 146 | 524 | ||||||||
| All other | 64 | 216 | ||||||||
| Total noninterest income | $ | 3,532 | $ | 2,998 | Three Months Ended March 31 | |||||
| --- | --- | --- | --- | --- | ||||||
| 2021 | 2020 | |||||||||
| Compensation and benefits | $ | 5,877 | $ | 5,869 | ||||||
| Furniture and equipment | 1,373 | 1,461 | ||||||||
| Occupancy | 945 | 867 | ||||||||
| Other | ||||||||||
| Audit, consulting, and legal fees | 436 | 433 | ||||||||
| ATM and debit card fees | 417 | 323 | ||||||||
| FDIC insurance premiums | 231 | 156 | ||||||||
| Memberships and subscriptions | 211 | 199 | ||||||||
| Marketing costs | 209 | 203 | ||||||||
| Loan underwriting fees | 190 | 166 | ||||||||
| Director fees | 159 | 182 | ||||||||
| Donations and community relations | 146 | 330 | ||||||||
| All other | 623 | 756 | ||||||||
| Total other noninterest expenses | 2,622 | 2,748 | ||||||||
| Total noninterest expenses | $ | 10,817 | $ | 10,945 |