8-K
PATRIOT NATIONAL BANCORP INC (PNBK)
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): December 1, 2020
PATRIOT NATIONAL BANCORP, INC.
(Exact name of registrant as specified in its charter)
| Connecticut | 000-29599 | 06-1559137 |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
| 900 Bedford Street, Stamford, Connecticut | 06901 | |
| --- | --- | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number including area code: (203) 324-7500
(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 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $0.01 per share | PNBK | NASDAQ Global Market |
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 7 – Regulation FD
Item 7.01 Regulation FD Disclosure
On December 1, 2020, Patriot National Bancorp, Inc. (the “Company”) issued a press release, a copy of which is attached hereto as Exhibit 99.1, regarding its earnings for the period ended September 30, 2020.
The information contained in this Current Report on Form 8-K (including the exhibit) is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly stated in such filing.
Section 9 - Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
| Exhibit No. | Description |
|---|---|
| 99.1 | Press Release of Patriot National Bancorp, Inc., dated December 1, 2020 |
SIGNATURE
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.
| Patriot National Bancorp, Inc. | ||
|---|---|---|
| December 1, 2020 | By: | /s/ Joseph D. Perillo |
| Joseph D. Perillo | ||
| Executive Vice President and Chief Financial Officer |
ex_216037.htm
Exhibit 99.1
| Contacts: | |||
|---|---|---|---|
| Patriot Bank, N.A. | Joseph Perillo | Robert Russell | Michael Carrazza |
| 900 Bedford Street | Chief Financial Officer | President & CEO | Chairman |
| Stamford, CT 06901 | 203-252-5954 | 203-252-5939 | 203-251-8230 |
| www.BankPatriot.com |
Patriot R eports Minimal ****** N et L oss of $87 thousand ****** ( $.02 per share ) for third quarter 2020 ****** - Loan Loss Provisions lowered; ****** Net Interest and Non-interest Income Improve ******
STAMFORD, CT – December 1 , **** 2020 **** (GLOBE NEWSWIRE) – Patriot National Bancorp, Inc. (“Patriot,” “Bancorp” or the “Company”) (NASDAQ: PNBK), the parent company of Patriot Bank, N.A. (the “Bank”), today announced a net loss of $87,000, or $0.02 basic and diluted loss per share for the quarter ended September 30, 2020, compared with a net loss of $1.3 million reported in the second quarter of 2020. The improvement compared with the second quarter of 2020 resulted from a lower provision for loan losses and higher net interest and non-interest income.
The net loss for the nine-month period ended September 30, 2020 was $2.4 million, or $0.62 per fully diluted share, as compared to a net loss of $1.3 million, or $0.33 per fully diluted shares, during the same period in the prior year. The 2020 results to date, reflect lower net interest income and non-interest income.
As of September 30, 2020, total assets decreased 5.8% to $922.9 million, as compared to the second quarter of 2020. The Bank’s net loan portfolio by $41.3 million, to $740.1 million, while total deposits decreased $55.7 million or 7.1%, to $727.4 million in the third quarter of 2020. The decline in loans represented an intentional slow-down in new loan originations as the impact of the pandemic on the local economy was better understood. The decrease in total deposits during the quarter is primarily the result of declines in the use of wholesale brokered deposits and higher-cost certificates of deposits, partially offset by growth in deposits gathered from the prepaid debit card business.
Excluding that change in brokered deposits, total deposits increased $71.0 million or 12.5% since the end of the third quarter in 2019. In July 2020, the Company completed the purchase of prepaid debit card deposits from a prominent national provider and processor of prepaid debit cards for corporate, consumer and government clients. The prepaid debit card deposits totaled approximately $60.0 million as of September 30, 2020.
As far as the impact of COVID-19, Patriot has kept all branches open with customers re-directed to non-contact ATM’s and Live Banker ATMs as on-line banking services continue to be optimized with expanded customer call center staffing. Its multi-year investment to enhance customer’s technological banking experience has been well tested during the pandemic, as from January 1 to September 30, 2020, Patriot’s mobile deposits were up 98%, use of its mobile app banking was up 33%, monthly average log-ins rose 8% and the number of customers completely new to digital banking rose by 30%.
The Bank had provided CARES Act payment relief on loans of approximately $244.4 million. The Bank received some very positive indications of the strength of its borrowers as a significant percentage of the loans deferred as a result of the CARES Act have now resumed normal payments. The majority of the modifications granted to customers expired in November of 2020, the balance of loans modified in conjunction with the CARES Act had declined from the high of $244.4 million to $59.1 million
Patriot President & CEO Robert Russell stated: “Many of the changes implemented during the second and third quarters are showing signs of success and are reflected in the positive profitability trends. The Bank continues to reshape its leadership team and its balance sheet and has strengthened its capital position to prepare for future growth and profitability of the organization. As the pandemic continues, Patriot remains prepared to deliver the tools and service required to remain a strong partner with the communities we serve”. Mr. Russell added: “we are very pleased that loans on deferral as a result of the CARES Act have declined from $244.4 million to $59.1 million.”
Financial Results:
As of September 30, 2020, total assets were $922.9 million, as compared to $979.5 million at June 30, 2020 and $972.0 million at September 30, 2019. Net loans receivable totaled $740.1 million, as compared to $781.4 million at June 30, 2020 and $791.9 million at September 30, 2019. Deposits totaled $727.4 million at September 30, 2020, as compared to $783.1 million at June 30, 2020 and $762.1 million at September 30, 2019.
The decline in loans and total assets represents the intentional downsizing of the Bank’s balance sheet as the current economic uncertainties associated with the COVID-19 pandemic are assessed. The Company continues to originate loans, but at a slower pace than in the past, and has seen loan maturities and loan payoffs outpace loan originations during the nine-month period of September 30, 2020.
Total deposits declined $55.7 million during the third quarter of 2020, this was due to a decline of $69.9 million in wholesale brokered deposits, a decline of $51.0 million in certificate of deposits as higher rate non-relationship deposits were allowed to run off, and a decline of $22.7 million in money market deposits, which was partially offset by an increase of $60.0 million in prepaid debit card deposits.
Net interest income was $5.9 million in the third quarter of 2020, an increase of 3.9% from the second quarter of 2020, and a decline of 5.4% from the third quarter of 2019. The year-to-date September 30, 2020 net interest income was $17.9 million, a decrease of 6.8% over the year-to-date September 2019.
Net interest margin was 2.61% in the third quarter of 2020, as compared to 2.46% in the second quarter of 2020 and 2.70% in the third quarter of 2019.
Compared to the prior year, net interest income was negatively impacted by a lower average loan balance, and an increase in the rate paid on FHLB borrowings associated with the conversion of certain borrowings from a low variable teaser rate to higher fixed rate. The decline also reflects the impact of lower interest rates connected with a decline in market interest rates in late first quarter of 2020 connected to the COVID-19 pandemic.
The provision for loan losses in the third quarter of 2020 was $85,000, as compared to $910,000 in the second quarter of 2020 and $100,000 in the third quarter of 2019. The Allowance for Loan losses at September 30, 2020 totals 1.49% of total loans compared with 1.41% at June 30, 2020 and 1.05% at September 30, 2019. The increase in the Allowance as a percent of loans reflects additional provisions in the second and third quarter associated with the estimated impact of the COVID-19 pandemic on the economy and local business community.
Noninterest income was $704,000 in the third quarter of 2020, 81.0% higher than the second quarter of 2020, and 23.3% higher than the third quarter of 2019. The increase was primarily due to gains on sale of SBA loans of $421,000 in the third quarter of 2020. The year-to-date September 30, 2020 noninterest income was $1.5 million, a decline of 27.0% over the year-to-date September 30, 2019. The decrease in noninterest income for the year-to-date period was primarily due to lower realized gains on the sale of SBA loans associated with delays in executing the sale of those loans in 2020.
Noninterest expense was $6.6 million in the third quarter of 2020, 3.9% lower than the second quarter of 2020, and 0.9% lower than the third quarter of 2019. The year-to-date September 30, 2020 non-interest expense was $20.9 million, 5.2% higher than the prior year. The increase in non-interest expense for the year-to-date period was primarily driven by an increase of $694,000 in salaries and benefits and an increase of $297,000 in regulatory assessments expenses in 2020.
The income tax benefit was $6,000 in the third quarter of 2020, representing an effective tax rate of 6.5%. The income tax benefit was $811,000 in the nine-month period ended September 30, 2020, representing an effective tax rate of 25.0%.
As of September 30, 2020, shareholders’ equity was $64.5 million, as compared to $64.2 million at June 30, 2020. Patriot’s book value per share was $16.39 at September 30, 2020, as compared to $16.30 at June 30, 2020. The Bank’s capital ratios continue to be strong, maintaining its “well capitalized” regulatory status. As of September 30, 2020, the Bank’s Tier 1 leverage ratio was 9.35%, Tier 1 risk-based capital ratio was 11.08% and total risk-based capital ratio was 12.33%.
Patriot has currently suspended its quarterly dividend due to the uncertainties surrounding the pandemic however, the Bank hopes to resume when the current economic uncertainties are settled.
Patriot Bank is headquartered in Stamford and operates 9 branch locations: in Scarsdale, NY; and Darien, Fairfield, Greenwich, Milford, Norwalk, Orange, Stamford, Westport, CT with Express Banking locations at Bridgeport/ Housatonic Community College, downtown New Haven and Trumbull at Westfield Mall. The Bank also maintains SBA lending offices in Jacksonville and Stamford, along with a Rhode Island operations center.
* * * * *
About the Company :
Founded in 1994, and now celebrating its 26th year, Patriot National Bancorp, Inc. (“Patriot” or “Bancorp”) is the parent holding company of Patriot Bank N.A. (“Bank”), a nationally chartered bank headquartered in Stamford, CT. Patriot operates with full service branches in Connecticut and New York and provides lending products and services nationally. Patriot’s mission is to serve its local community and nationwide customer base by providing a growing array of banking solutions to meet the needs of individuals and small businesses owners. Patriot places great value in the integrity of its people and how it conducts business. An emphasis on building strong client relationships and community involvement are cornerstones of our philosophy as we seek to maximize shareholder value.
“Safe Harbor” Statement Under Private Securities Litigation Reform Act of 1995 :
Certain statements contained in Bancorp’s public statements, including this one, may be forward looking and subject to a variety of risks and uncertainties. These factors include, but are not limited to: (1) changes in prevailing interest rates which would affect the interest earned on the Company’s interest earning assets and the interest paid on its interest bearing liabilities; (2) the timing of re-pricing of the Company’s interest earning assets and interest bearing liabilities; (3) the effect of changes in governmental monetary policy; (4) the effect of changes in regulations applicable to the Company and the Bank and the conduct of its business; (5) changes in competition among financial service companies, including possible further encroachment of non-banks on services traditionally provided by banks; (6) the ability of competitors that are larger than the Company to provide products and services which it is impracticable for the Company to provide; (7) the state of the economy and real estate values in the Company’s market areas, and the consequent effect on the quality of the Company’s loans; (8) demand for loans and deposits in our market area; (9) recent governmental initiatives that are expected to have a profound effect on the financial services industry and could dramatically change the competitive environment of the Company; (10) other legislative or regulatory changes, including those related to residential mortgages, changes in accounting standards, and Federal Deposit Insurance Corporation (“FDIC”) premiums that may adversely affect the Company; (11) the application of generally accepted accounting principles, consistently applied; (12) the fact that one period of reported results may not be indicative of future periods; (13) the state of the economy in the greater New York metropolitan area and its particular effect on the Company's customers, vendors and communities and other such factors, including risk factors, as may be described in the Company’s other filings with the Securities and Exchange Commission (the “SEC”); (14) political, social, legal and economic instability, civil unrest, war, catastrophic events, acts of terrorism; (15) widespread outbreaks of infectious diseases, including the ongoing novel coronavirus (COVID-19) outbreak; (16) changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses; (17) our ability to access cost-effective funding; (18) our ability to implement and change our business strategies; (19) changes in the quality or composition of our loan or investment portfolios; (20) technological changes that may be more difficult or expensive than expected; (21) our ability to manage market risk, credit risk and operational risk in the current economic environment; (22) our ability to enter new markets successfully and capitalize on growth opportunities; (23) changes in consumer spending, borrowing and savings habits; (24) our ability to retain key employees; and (25) our compensation expense associated with equity allocated or awarded to our employees.
| PATRIOT NATIONAL BANCORP, INC. AND SUBSIDIARIES | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||||
| (In thousands, except share data) | September 30, 2020 | June 30, 2020 | September 30, 2019 | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Assets | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Cash and due from banks: | |||||||||
| Noninterest bearing deposits and cash | $ | 3,231 | $ | 1,616 | $ | 3,157 | |||
| Interest bearing deposits | 46,405 | 64,280 | 46,844 | ||||||
| Total cash and cash equivalents | 49,636 | 65,896 | 50,001 | ||||||
| Investment securities: | |||||||||
| Available-for-sale securities, at fair value | 47,823 | 46,624 | 50,057 | ||||||
| Other investments, at cost | 4,450 | 4,450 | 4,963 | ||||||
| Total investment securities | 52,273 | 51,074 | 55,020 | ||||||
| Federal Reserve Bank stock, at cost | 2,783 | 2,897 | 2,889 | ||||||
| Federal Home Loan Bank stock, at cost | 4,503 | 4,503 | 4,477 | ||||||
| Gross loans receivable | 751,298 | 792,500 | 800,314 | ||||||
| Allowance for loan losses | (11,171 | ) | (11,148 | ) | (8,405 | ) | |||
| Net loans receivable | 740,127 | 781,352 | 791,909 | ||||||
| SBA loans held for sale | 6,824 | 7,579 | 4,103 | ||||||
| Accrued interest and dividends receivable | 6,834 | 5,624 | 3,538 | ||||||
| Premises and equipment, net | 33,632 | 33,962 | 34,883 | ||||||
| Other real estate owned | 1,954 | 2,400 | 2,400 | ||||||
| Deferred tax asset, net | 12,066 | 12,180 | 11,495 | ||||||
| Goodwill | 1,107 | 1,107 | 1,107 | ||||||
| Core deposit intangible, net | 567 | 586 | 642 | ||||||
| Other assets | 10,623 | 10,384 | 9,521 | ||||||
| Total assets | $ | 922,929 | $ | 979,544 | $ | 971,985 | |||
| Liabilities | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Deposits: | |||||||||
| Noninterest bearing deposits | $ | 161,871 | $ | 97,360 | $ | 80,772 | |||
| Interest bearing deposits | 565,560 | 685,728 | 681,284 | ||||||
| Total deposits | 727,431 | 783,088 | 762,056 | ||||||
| Federal Home Loan Bank and correspondent bank borrowings | 90,000 | 90,000 | 100,000 | ||||||
| Senior notes, net | 11,909 | 11,890 | 11,834 | ||||||
| Subordinated debt, net | 9,774 | 9,767 | 9,745 | ||||||
| Junior subordinated debt owed to unconsolidated trust, net | 8,108 | 8,106 | 8,100 | ||||||
| Note payable | 1,044 | 1,094 | 1,242 | ||||||
| Advances from borrowers for taxes and insurance | 2,492 | 3,773 | 2,182 | ||||||
| Accrued expenses and other liabilities | 7,634 | 7,654 | 8,647 | ||||||
| Total liabilities | **** | 858,392 | **** | 915,372 | **** | 903,806 | |||
| Commitments and Contingencies | - | - | - | ||||||
| Shareholders' equity | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Preferred stock | - | - | - | ||||||
| Common stock | 106,293 | 106,251 | 106,118 | ||||||
| Accumulated deficit | (41,210 | ) | (41,123 | ) | (37,222 | ) | |||
| Accumulated other comprehensive loss | (546 | ) | (956 | ) | (717 | ) | |||
| Total shareholders' equity | **** | 64,537 | **** | 64,172 | **** | 68,179 | |||
| Total liabilities and shareholders' equity | $ | 922,929 | $ | 979,544 | $ | 971,985 |
| PATRIOT NATIONAL BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (In thousands, except per share amounts) | September 30, 2020 | June 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |||||||||
| Interest and Dividend Income | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest and fees on loans | $ | 8,578 | $ | 9,111 | $ | 10,245 | $ | 27,722 | $ | 30,345 | ||||
| Interest on investment securities | 340 | 378 | 430 | 1,134 | 1,207 | |||||||||
| Dividends on investment securities | 85 | 90 | 112 | 313 | 344 | |||||||||
| Other interest income | 28 | 24 | 225 | 187 | 795 | |||||||||
| Total interest and dividend income | 9,031 | 9,603 | 11,012 | 29,356 | 32,691 | |||||||||
| Interest Expense | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest on deposits | 2,028 | 2,792 | 3,655 | 8,020 | 10,452 | |||||||||
| Interest on Federal Home Loan Bank borrowings | 628 | 638 | 602 | 1,963 | 1,467 | |||||||||
| Interest on senior debt | 229 | 228 | 229 | 686 | 686 | |||||||||
| Interest on subordinated debt | 235 | 253 | 277 | 756 | 845 | |||||||||
| Interest on note payable and other | 5 | 5 | 6 | 15 | 20 | |||||||||
| Total interest expense | 3,125 | 3,916 | 4,769 | 11,440 | 13,470 | |||||||||
| Net interest income | 5,906 | 5,687 | 6,243 | 17,916 | 19,221 | |||||||||
| Provision for Loan Losses | 85 | 910 | 100 | 1,799 | 3,202 | |||||||||
| Net interest income after provision for loan losses | 5,821 | 4,777 | 6,143 | 16,117 | 16,019 | |||||||||
| Non-interest Income | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Loan application, inspection and processing fees | 54 | 40 | 32 | 147 | 74 | |||||||||
| Deposit fees and service charges | 73 | 66 | 123 | 253 | 366 | |||||||||
| Gains on sale of loans | 380 | 72 | 188 | 464 | 864 | |||||||||
| Rental income | 131 | 131 | 137 | 393 | 459 | |||||||||
| Other income | 66 | 80 | 91 | 257 | 312 | |||||||||
| Total non-interest income | 704 | 389 | 571 | 1,514 | 2,075 | |||||||||
| Non-interest Expense | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Salaries and benefits | 3,460 | 3,645 | 3,480 | 10,966 | 10,272 | |||||||||
| Occupancy and equipment expenses | 810 | 921 | 937 | 2,680 | 2,598 | |||||||||
| Data processing expenses | 433 | 371 | 357 | 1,194 | 1,088 | |||||||||
| Professional and other outside services | 627 | 726 | 721 | 2,137 | 2,233 | |||||||||
| Project expenses, net | 6 | 54 | 212 | 154 | 277 | |||||||||
| Advertising and promotional expenses | 107 | 123 | 63 | 377 | 255 | |||||||||
| Loan administration and processing expenses | 75 | 36 | 44 | 135 | 101 | |||||||||
| Regulatory assessments | 355 | 364 | 152 | 1,159 | 862 | |||||||||
| Insurance expenses | 67 | 78 | 65 | 215 | 160 | |||||||||
| Communications, stationary and supplies | 118 | 133 | 118 | 371 | 383 | |||||||||
| Other operating expenses | 560 | 439 | 530 | 1,491 | 1,626 | |||||||||
| Total non-interest expense | 6,618 | 6,890 | 6,679 | 20,879 | 19,855 | |||||||||
| (Loss) income before income taxes | (93 | ) | (1,724 | ) | 35 | (3,248 | ) | (1,761 | ) | |||||
| (Benefit) provision for income taxes | (6 | ) | (446 | ) | 8 | (811 | ) | (456 | ) | |||||
| Net (loss) income | $ | (87 | ) | $ | (1,278 | ) | $ | 27 | $ | (2,437 | ) | $ | (1,305 | ) |
| Basic (loss) earnings per share | $ | (0.02 | ) | $ | (0.32 | ) | $ | 0.01 | $ | (0.62 | ) | $ | (0.33 | ) |
| Diluted (loss)earnings per share | $ | (0.02 | ) | $ | (0.32 | ) | $ | 0.01 | $ | (0.62 | ) | $ | (0.33 | ) |
| FINANCIAL RATIOS AND OTHER DATA | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended | Nine Months Ended | ||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (Dollars in thousands) | September 30, 2020 | June 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||
| Quarterly Performance Data: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Net (loss) income | $ | (87 | ) | $ | (1,279 | ) | $ | 26 | $ | (2,437 | ) | $ | (1,305 | ) | |
| Return on Average Assets | -0.04 | % | -0.52 | % | 0.01 | % | -0.33 | % | -0.08 | % | |||||
| Return on Average Equity | -0.53 | % | -7.89 | % | 0.15 | % | -4.96 | % | -1.07 | % | |||||
| Net Interest Margin | 2.61 | % | 2.46 | % | 2.70 | % | 2.61 | % | 1.22 | % | |||||
| Efficiency Ratio | 100.12 | % | 113.41 | % | 98.02 | % | 107.46 | % | 93.24 | % | |||||
| Efficiency Ratio excluding project costs | 100.03 | % | 112.51 | % | 94.92 | % | 106.66 | % | 91.94 | % | |||||
| % increase loans | -5.20 | % | -3.22 | % | -1.41 | % | -7.49 | % | 2.55 | % | |||||
| % increase deposits | -7.11 | % | -2.51 | % | -0.72 | % | -5.47 | % | 2.53 | % | |||||
| Asset Quality: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Nonaccrual loans | $ | 20,440 | $ | 21,593 | $ | 19,183 | $ | 20,440 | $ | 19,183 | |||||
| Other real estate owned | $ | 1,954 | $ | 2,400 | $ | 2,400 | $ | 1,954 | $ | 2,400 | |||||
| Total nonperforming assets | $ | 22,394 | $ | 23,993 | $ | 21,583 | $ | 22,394 | $ | 21,583 | |||||
| Nonaccrual loans / loans | 2.72 | % | 2.72 | % | 2.40 | % | 2.72 | % | 2.40 | % | |||||
| Nonperforming assets / assets | 2.43 | % | 2.45 | % | 2.22 | % | 2.43 | % | 2.22 | % | |||||
| Allowance for loan losses | $ | 11,171 | $ | 11,148 | $ | 8,405 | $ | 11,171 | $ | 8,405 | |||||
| Valuation reserve | $ | 492 | $ | 485 | $ | 1,252 | $ | 492 | $ | 1,252 | |||||
| Allowance for loan losses with valuation reserve | $ | 11,663 | $ | 11,633 | $ | 9,657 | $ | 11,663 | $ | 9,657 | |||||
| Allowance for loan losses / loans | 1.49 | % | 1.41 | % | 1.05 | % | 1.49 | % | 1.05 | % | |||||
| Allowance / nonaccrual loans | 54.65 | % | 51.63 | % | 43.81 | % | 54.65 | % | 43.81 | % | |||||
| Allowance for loan losses and valuation reserve / loans | 1.55 | % | 1.47 | % | 1.20 | % | 1.55 | % | 1.20 | % | |||||
| Allowance for loan losses and valuation reserve / nonaccrual loans | 57.06 | % | 53.87 | % | 50.34 | % | 57.06 | % | 50.34 | % | |||||
| Gross loan charge-offs | $ | 75 | $ | 691 | $ | 282 | $ | 810 | $ | 2,589 | |||||
| Gross loan (recoveries) | $ | (13 | ) | $ | (13 | ) | $ | (128 | ) | $ | (67 | ) | $ | (183 | ) |
| Net loan charge-offs (recoveries) | $ | 62 | $ | 678 | $ | 154 | $ | 743 | $ | 2,406 | |||||
| Capital Data and Capital Ratios | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Book value per share (1) | $ | 16.39 | $ | 16.30 | $ | 17.37 | $ | 16.39 | $ | 17.37 | |||||
| Shares outstanding | 3,937,041 | 3,935,841 | 3,925,002 | 3,937,041 | 3,925,002 | ||||||||||
| Bank Capital Ratios: | ****** | ****** | ****** | ****** | ****** | ****** | ****** | ****** | ****** | ****** | ****** | ****** | ****** | ****** | ****** |
| Leverage Ratio | 9.35 | % | 9.03 | % | 9.47 | % | 9.35 | % | 9.47 | % | |||||
| Tier 1 Capital | 11.08 | % | 10.52 | % | 10.82 | % | 11.08 | % | 10.82 | % | |||||
| Total Risk Based Capital | 12.33 | % | 11.77 | % | 11.81 | % | 12.33 | % | 11.81 | % | |||||
| (1) Book value per share represents shareholders' equity divided by outstanding shares. | |||||||||||||||
| --- | |||||||||||||||
| Deposits: | **** | **** | **** | **** | **** | ||||||||||
| --- | --- | --- | --- | --- | --- | ||||||||||
| June 30, | September 30, | ||||||||||||||
| (In thousands) | 2020 | 2019 | |||||||||||||
| Non-interest bearing: | **** | **** | **** | **** | **** | ||||||||||
| Non-interest bearing | 102,004 | $ | 95,932 | $ | 80,772 | ||||||||||
| Prepaid DDA | 59,867 | 1,428 | - | ||||||||||||
| Total non-interest bearing | 161,871 | 97,360 | 80,772 | ||||||||||||
| Interest bearing: | **** | **** | **** | **** | **** | ||||||||||
| NOW | 29,518 | 26,941 | 23,675 | ||||||||||||
| Savings | 91,169 | 70,230 | 57,390 | ||||||||||||
| Money market | 142,909 | 165,658 | 125,934 | ||||||||||||
| Certificates of deposit, less than 250,000 | 133,754 | 160,258 | 170,814 | ||||||||||||
| Certificates of deposit, 250,000 or greater | 44,042 | 60,066 | 62,702 | ||||||||||||
| Listed Deposits | 33,173 | 41,690 | 44,140 | ||||||||||||
| Brokered deposits | 90,995 | 160,885 | 196,629 | ||||||||||||
| Total Interest bearing | 565,560 | 685,728 | 681,284 | ||||||||||||
| Total Deposits | 727,431 | $ | 783,088 | $ | 762,056 |
All values are in US Dollars.