CF BANKSHARES INC., PARENT OF CFBANK NA, REPORTS RESULTS FOR THE 2nd QUARTER 2025
Second Quarter 2025 Highlights
- Net income for Q2 2025 was
$5.0 million ($0.77 per diluted common share), which included$1.4 million of Provision expense. This represents a 197% increase in net income over Q2 2024. The provision for credit losses negatively impacted earnings per share by$0.17 for Q2 2025. - Pre-provision, pre-tax net revenue (PPNR) for Q2 2025 was
$7.8 million , which represents a 42% increase over Q2 2024 and a 27% increase over Q1 2025. - Return on Average Equity (ROE) was 11.47% for Q2 2025, while Return on Average Assets (ROA) was 0.97%.
- Book value per share increased to
$26.63 as ofJune 30, 2025 . - Net Interest Margin (NIM) increased 19bps when compared to the prior quarter and increased 44bps when compared to the Q2 2024. This represents the fifth consecutive quarter in which we have achieved NIM expansion.
- Cost of funds declined 48bps when compared to Q2 2024.
- Efficiency Ratio improved to 49.8% compared to 55.9% for the prior quarter and 56.4% for Q2 2024.
Recent Developments
- On
July 1, 2025 , the Company's Board of Directors declared a cash dividend of$0.08 per share on its common stock and a corresponding cash dividend of$8.00 per share on its Series D Preferred Stock. The dividend was paid onJuly 21, 2025 to shareholders of record as of the close of business onJuly 11, 2025 .
CEO and Board Chair Commentary
- Scaling our
Commercial Bank and improving our Loan and Customer Mix through the addition of full-service C&I loan and full-service deposit and treasury management customers. - Strengthening our Regional Market Leadership, as well as expanding our Commercial & Retail Banking teams by adding additional proven top performers.
- Improving our Deposit franchise by lowering our Cost of Funds and reducing reliance on higher cost funding.
- Reducing and Refinancing Low-Rate loans, predominantly residential mortgage portfolio loans, while we emphasize the growth of Salable Home Mortgage loans throughout our market Footprints.
In addition, to the expansion of and strengthening of our Regional Banking Teams to date, we also generated PPNR of
The significant Leadership & Banking Talent upgrades which have been accomplished, we believe bode well going forward, enabling us to accelerate the execution of our stated Key Strategic & Business Objectives.
Our Bests are yet Ahead!"
Overview of Results
Net income for the three months ended
Net income for the six months ended
Net Interest Income and Net Interest Margin
Net interest income totaled
The increase in net interest income compared to the prior quarter was primarily due to a
The increase in net interest income compared to the second quarter of 2024 was primarily due to a
Noninterest Income
Noninterest income for the three months ended
Noninterest income for the three months ended
The following table represents the notional amount of loans sold during the three months ended
|
Three Months ended |
|
||||||||||
|
|
|
|
|
|
|
|
|
||||
Notional amount of loans sold |
|
$ |
14,023 |
|
|
$ |
27,277 |
|
|
$ |
10,837 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Expense
Noninterest expense for the quarter ended
Noninterest expense for the quarter ended
Income Tax Expense
Income tax expense was
Loans and Loans Held For Sale
Net loans and leases totaled
The increase in loans and leases from
The following table presents the recorded investment in loans and leases for certain non-owner-occupied loan types (in thousands).
|
|
|
|
|
|
|
||
Construction – 1-4 family* |
|
$ |
29,131 |
|
|
$ |
29,430 |
|
Construction – Multi-family* |
|
|
157,743 |
|
|
|
155,983 |
|
Construction – Non-residential* |
|
|
18,785 |
|
|
|
23,646 |
|
Hotel/Motel |
|
|
11,853 |
|
|
|
11,926 |
|
Industrial / Warehouse |
|
|
75,408 |
|
|
|
74,068 |
|
|
|
|
32,942 |
|
|
|
33,195 |
|
|
|
|
2,045 |
|
|
|
2,184 |
|
Multi-family |
|
|
218,523 |
|
|
|
211,937 |
|
Office |
|
|
40,150 |
|
|
|
41,109 |
|
Retail |
|
|
69,815 |
|
|
|
71,948 |
|
Other |
|
|
7,424 |
|
|
|
7,603 |
|
|
* |
Asset Quality
Nonaccrual loans were
Loans 30 days or more past due totaled
The allowance for credit losses on loans and leases totaled
There was
Deposits
Deposits totaled
At
Borrowings
FHLB advances and other debt totaled
Capital
Stockholders' equity totaled
USE OF NON-GAAP FINANCIAL MEASURES
This earnings release contains financial information and performance measures determined by methods other than in accordance with accounting principles generally accepted in
About
Additional information about the Company and
FORWARD LOOKING STATEMENTS
This press release and other materials we have filed or may file with the
Forward-looking statements are not guarantees of performance or results. A forward-looking statement may include a statement of the assumptions or bases underlying the forward-looking statement. We believe that we have chosen these assumptions or bases in good faith and that they are reasonable. We caution you, however, that assumptions or bases almost always vary from actual results, and the differences between assumptions or bases and actual results can be material. The forward-looking statements included in this press release speak only as of the date hereof. We undertake no obligation to publicly release revisions to any forward-looking statements to reflect events or circumstances after the date of such statements, except to the extent required by law.
Consolidated Statements of Income ($ in thousands, except share data)
|
|||||||||||||||||||||||||||
(unaudited) |
Three months ended |
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|
Six months ended |
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||||||||||||||||
|
2025 |
|
|
2024 |
|
|
% change |
|
|
2025 |
|
|
2024 |
|
|
% change |
|
||||||||||
Total interest income |
$ |
|
30,359 |
|
|
$ |
|
29,315 |
|
|
|
4 |
% |
|
$ |
|
59,559 |
|
|
$ |
|
58,401 |
|
|
|
2 |
% |
Total interest expense |
|
|
16,358 |
|
|
|
|
17,948 |
|
|
|
-9 |
% |
|
|
|
32,649 |
|
|
|
|
35,750 |
|
|
|
-9 |
% |
Net interest income |
|
|
14,001 |
|
|
|
|
11,367 |
|
|
|
23 |
% |
|
|
|
26,910 |
|
|
|
|
22,651 |
|
|
|
19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Provision for credit losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Provision for credit losses-loans |
|
|
1,370 |
|
|
|
|
3,195 |
|
|
|
-57 |
% |
|
|
|
1,722 |
|
|
|
|
4,512 |
|
|
|
-62 |
% |
Provision for credit losses-unfunded |
|
|
57 |
|
|
|
|
366 |
|
|
|
-84 |
% |
|
|
|
287 |
|
|
|
|
286 |
|
|
|
0 |
% |
|
|
|
1,427 |
|
|
|
|
3,561 |
|
|
|
-60 |
% |
|
|
|
2,009 |
|
|
|
|
4,798 |
|
|
|
-58 |
% |
Net interest income after provision for |
|
|
12,574 |
|
|
|
|
7,806 |
|
|
|
61 |
% |
|
|
|
24,901 |
|
|
|
|
17,853 |
|
|
|
39 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Service charges on deposit accounts |
|
|
721 |
|
|
|
|
623 |
|
|
|
16 |
% |
|
|
|
1,388 |
|
|
|
|
1,182 |
|
|
|
17 |
% |
Net gain on sales of residential |
|
|
206 |
|
|
|
|
87 |
|
|
|
137 |
% |
|
|
|
320 |
|
|
|
|
177 |
|
|
|
81 |
% |
Net gain (loss) on sales of |
|
|
— |
|
|
|
|
— |
|
|
n/m |
|
|
|
|
(18) |
|
|
|
|
167 |
|
|
n/m |
|
||
Net loss on sale of equity security |
|
|
— |
|
|
|
|
— |
|
|
n/m |
|
|
|
|
(103) |
|
|
|
|
— |
|
|
n/m |
|
||
Swap fee income |
|
|
196 |
|
|
|
|
— |
|
|
n/m |
|
|
|
|
196 |
|
|
|
|
— |
|
|
n/m |
|
||
Other |
|
|
457 |
|
|
|
|
508 |
|
|
|
-10 |
% |
|
|
|
1,003 |
|
|
|
|
597 |
|
|
|
68 |
% |
Noninterest income |
|
|
1,580 |
|
|
|
|
1,218 |
|
|
|
30 |
% |
|
|
|
2,786 |
|
|
|
|
2,123 |
|
|
|
31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Salaries and employee benefits |
|
|
3,954 |
|
|
|
|
3,570 |
|
|
|
11 |
% |
|
|
|
8,137 |
|
|
|
|
7,078 |
|
|
|
15 |
% |
Occupancy and equipment |
|
|
417 |
|
|
|
|
471 |
|
|
|
-11 |
% |
|
|
|
851 |
|
|
|
|
905 |
|
|
|
-6 |
% |
Data processing |
|
|
683 |
|
|
|
|
649 |
|
|
|
5 |
% |
|
|
|
1,357 |
|
|
|
|
1,264 |
|
|
|
7 |
% |
Franchise and other taxes |
|
|
304 |
|
|
|
|
356 |
|
|
|
-15 |
% |
|
|
|
607 |
|
|
|
|
642 |
|
|
|
-5 |
% |
Professional fees |
|
|
899 |
|
|
|
|
590 |
|
|
|
52 |
% |
|
|
|
1,686 |
|
|
|
|
1,253 |
|
|
|
35 |
% |
Director fees |
|
|
180 |
|
|
|
|
143 |
|
|
|
26 |
% |
|
|
|
357 |
|
|
|
|
268 |
|
|
|
33 |
% |
Postage, printing, and supplies |
|
|
46 |
|
|
|
|
42 |
|
|
|
10 |
% |
|
|
|
95 |
|
|
|
|
86 |
|
|
|
10 |
% |
Advertising and marketing |
|
|
84 |
|
|
|
|
38 |
|
|
|
121 |
% |
|
|
|
128 |
|
|
|
|
52 |
|
|
|
146 |
% |
Telephone |
|
|
43 |
|
|
|
|
52 |
|
|
|
-17 |
% |
|
|
|
98 |
|
|
|
|
103 |
|
|
|
-5 |
% |
Loan expenses |
|
|
196 |
|
|
|
|
259 |
|
|
|
-24 |
% |
|
|
|
521 |
|
|
|
|
706 |
|
|
|
-26 |
% |
Foreclosed assets, net |
|
|
3 |
|
|
|
|
— |
|
|
n/m |
|
|
|
|
4 |
|
|
|
|
— |
|
|
n/m |
|
||
Depreciation |
|
|
118 |
|
|
|
|
122 |
|
|
|
-3 |
% |
|
|
|
236 |
|
|
|
|
252 |
|
|
|
-6 |
% |
|
|
|
534 |
|
|
|
|
499 |
|
|
|
7 |
% |
|
|
|
1,080 |
|
|
|
|
1,099 |
|
|
|
-2 |
% |
Regulatory assessment |
|
|
64 |
|
|
|
|
66 |
|
|
|
-3 |
% |
|
|
|
129 |
|
|
|
|
131 |
|
|
|
-2 |
% |
Other insurance |
|
|
50 |
|
|
|
|
51 |
|
|
|
-2 |
% |
|
|
|
96 |
|
|
|
|
107 |
|
|
|
-10 |
% |
Other |
|
|
179 |
|
|
|
|
184 |
|
|
|
-3 |
% |
|
|
|
326 |
|
|
|
|
333 |
|
|
|
-2 |
% |
Noninterest expense |
|
|
7,754 |
|
|
|
|
7,092 |
|
|
|
9 |
% |
|
|
|
15,708 |
|
|
|
|
14,279 |
|
|
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Income before income taxes |
|
|
6,400 |
|
|
|
|
1,932 |
|
|
|
231 |
% |
|
|
|
11,979 |
|
|
|
|
5,697 |
|
|
|
110 |
% |
Income tax expense |
|
|
1,365 |
|
|
|
|
237 |
|
|
|
476 |
% |
|
|
|
2,514 |
|
|
|
|
932 |
|
|
|
170 |
% |
Net income |
|
|
5,035 |
|
|
|
|
1,695 |
|
|
|
197 |
% |
|
|
|
9,465 |
|
|
|
|
4,765 |
|
|
|
99 |
% |
Earnings allocated to participating |
|
|
(155) |
|
|
|
|
(54) |
|
|
n/m |
|
|
|
|
(292) |
|
|
|
|
(121) |
|
|
n/m |
|
||
Net Income attributable to common |
$ |
|
4,880 |
|
|
$ |
|
1,641 |
|
|
|
197 |
% |
|
$ |
|
9,173 |
|
|
$ |
|
4,644 |
|
|
|
98 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Share Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic earnings per common share |
$ |
|
0.77 |
|
|
$ |
|
0.26 |
|
|
|
|
|
$ |
|
1.46 |
|
|
$ |
|
0.74 |
|
|
|
|
||
Diluted earnings per common share |
$ |
|
0.77 |
|
|
$ |
|
0.26 |
|
|
|
|
|
$ |
|
1.45 |
|
|
$ |
|
0.74 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Average common shares |
|
|
6,300,427 |
|
|
|
|
6,256,457 |
|
|
|
|
|
|
|
6,293,078 |
|
|
|
|
6,293,178 |
|
|
|
|
||
Average common shares |
|
|
6,344,833 |
|
|
|
|
6,256,457 |
|
|
|
|
|
|
|
6,315,281 |
|
|
|
|
6,306,878 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
n/m - not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Financial Condition
|
||||||||||||||||||||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(unaudited) |
2025 |
|
|
2025 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
||||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents |
$ |
|
275,684 |
|
|
$ |
|
240,986 |
|
|
$ |
|
235,272 |
|
|
$ |
|
233,520 |
|
|
$ |
|
241,775 |
|
Interest-bearing deposits in other |
|
|
100 |
|
|
|
|
100 |
|
|
|
|
100 |
|
|
|
|
100 |
|
|
|
|
100 |
|
Securities available for sale |
|
|
8,996 |
|
|
|
|
8,793 |
|
|
|
|
8,683 |
|
|
|
|
8,690 |
|
|
|
|
8,323 |
|
Equity securities |
|
|
- |
|
|
|
|
- |
|
|
|
|
5,000 |
|
|
|
|
5,000 |
|
|
|
|
5,000 |
|
Loans held for sale |
|
|
1,613 |
|
|
|
|
3,505 |
|
|
|
|
2,623 |
|
|
|
|
5,240 |
|
|
|
|
3,187 |
|
Loans and leases |
|
|
1,773,930 |
|
|
|
|
1,767,942 |
|
|
|
|
1,739,493 |
|
|
|
|
1,733,855 |
|
|
|
|
1,706,980 |
|
Less allowance for credit losses |
|
|
(19,122) |
|
|
|
|
(17,803) |
|
|
|
|
(17,474) |
|
|
|
|
(16,780) |
|
|
|
|
(19,285) |
|
Loans and leases, net |
|
|
1,754,808 |
|
|
|
|
1,750,139 |
|
|
|
|
1,722,019 |
|
|
|
|
1,717,075 |
|
|
|
|
1,687,695 |
|
FHLB and FRB stock |
|
|
8,031 |
|
|
|
|
8,022 |
|
|
|
|
8,918 |
|
|
|
|
8,908 |
|
|
|
|
9,830 |
|
Foreclosed assets, net |
|
|
524 |
|
|
|
|
524 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
Premises and equipment, net |
|
|
3,469 |
|
|
|
|
3,472 |
|
|
|
|
3,536 |
|
|
|
|
3,480 |
|
|
|
|
3,571 |
|
Operating lease right of use |
|
|
5,760 |
|
|
|
|
5,925 |
|
|
|
|
6,087 |
|
|
|
|
6,259 |
|
|
|
|
4,858 |
|
Bank owned life insurance |
|
|
27,573 |
|
|
|
|
27,341 |
|
|
|
|
27,116 |
|
|
|
|
26,899 |
|
|
|
|
26,683 |
|
Accrued interest receivable and |
|
|
46,979 |
|
|
|
|
45,874 |
|
|
|
|
46,169 |
|
|
|
|
51,323 |
|
|
|
|
49,612 |
|
Total assets |
$ |
|
2,133,537 |
|
|
$ |
|
2,094,681 |
|
|
$ |
|
2,065,523 |
|
|
$ |
|
2,066,494 |
|
|
$ |
|
2,040,634 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Noninterest bearing |
$ |
|
296,348 |
|
|
$ |
|
291,800 |
|
|
$ |
|
273,668 |
|
|
$ |
|
257,715 |
|
|
$ |
|
217,771 |
|
Interest bearing |
|
|
1,513,500 |
|
|
|
|
1,491,889 |
|
|
|
|
1,482,127 |
|
|
|
|
1,487,861 |
|
|
|
|
1,478,705 |
|
Total deposits |
|
|
1,809,848 |
|
|
|
|
1,783,689 |
|
|
|
|
1,755,795 |
|
|
|
|
1,745,576 |
|
|
|
|
1,696,476 |
|
FHLB advances and other debt |
|
|
100,947 |
|
|
|
|
92,689 |
|
|
|
|
92,680 |
|
|
|
|
108,672 |
|
|
|
|
137,163 |
|
Advances by borrowers for taxes |
|
|
374 |
|
|
|
|
1,346 |
|
|
|
|
2,238 |
|
|
|
|
1,214 |
|
|
|
|
154 |
|
Operating lease liabilities |
|
|
5,932 |
|
|
|
|
6,083 |
|
|
|
|
6,229 |
|
|
|
|
6,387 |
|
|
|
|
4,949 |
|
Accrued interest payable and |
|
|
24,394 |
|
|
|
|
23,183 |
|
|
|
|
25,144 |
|
|
|
|
25,652 |
|
|
|
|
27,322 |
|
Subordinated debentures |
|
|
15,019 |
|
|
|
|
15,009 |
|
|
|
|
15,000 |
|
|
|
|
14,990 |
|
|
|
|
14,980 |
|
Total liabilities |
|
|
1,956,514 |
|
|
|
|
1,921,999 |
|
|
|
|
1,897,086 |
|
|
|
|
1,902,491 |
|
|
|
|
1,881,044 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Stockholders' equity |
|
|
177,023 |
|
|
|
|
172,682 |
|
|
|
|
168,437 |
|
|
|
|
164,003 |
|
|
|
|
159,590 |
|
Total liabilities and stockholders' |
$ |
|
2,133,537 |
|
|
$ |
|
2,094,681 |
|
|
$ |
|
2,065,523 |
|
|
$ |
|
2,066,494 |
|
|
$ |
|
2,040,634 |
|
Average Balance Sheet and Yield Analysis
|
||||||||||||||||||||||||||
|
For Three Months Ended |
|||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||
|
Average |
|
Interest |
|
Average |
|
Average |
|
Interest |
|
Average |
|
Average |
|
Interest |
|
Average |
|||||||||
|
Outstanding |
|
Earned/ |
|
Yield/ |
|
Outstanding |
|
Earned/ |
|
Yield/ |
|
Outstanding |
|
Earned/ |
|
Yield/ |
|||||||||
|
Balance |
|
Paid |
|
Rate |
|
Balance |
|
Paid |
|
Rate |
|
Balance |
|
Paid |
|
Rate |
|||||||||
|
(Dollars in thousands) |
|||||||||||||||||||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities (1) (2) |
$ |
8,830 |
|
$ |
40 |
|
|
1.45 % |
|
$ |
13,632 |
|
$ |
139 |
|
|
3.49 % |
|
$ |
12,902 |
|
$ |
133 |
|
|
3.37 % |
Loans and leases and loans held for sale (3) |
|
1,760,308 |
|
|
27,907 |
|
|
6.34 % |
|
|
1,747,968 |
|
|
26,815 |
|
|
6.14 % |
|
|
1,688,522 |
|
|
26,339 |
|
|
6.24 % |
Other earning assets |
|
200,614 |
|
|
2,259 |
|
|
4.50 % |
|
|
183,421 |
|
|
2,072 |
|
|
4.52 % |
|
|
191,199 |
|
|
2,679 |
|
|
5.60 % |
FHLB and FRB stock |
|
8,028 |
|
|
153 |
|
|
7.62 % |
|
|
8,151 |
|
|
174 |
|
|
8.54 % |
|
|
8,646 |
|
|
164 |
|
|
7.59 % |
Total interest-earning assets |
|
1,977,780 |
|
|
30,359 |
|
|
6.13 % |
|
|
1,953,172 |
|
|
29,200 |
|
|
5.97 % |
|
|
1,901,269 |
|
|
29,315 |
|
|
6.16 % |
Noninterest-earning assets |
|
97,153 |
|
|
|
|
|
|
|
|
99,873 |
|
|
|
|
|
|
|
|
96,107 |
|
|
|
|
|
|
Total assets |
$ |
2,074,933 |
|
|
|
|
|
|
|
$ |
2,053,045 |
|
|
|
|
|
|
|
$ |
1,997,376 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
$ |
1,464,909 |
|
$ |
15,186 |
|
|
4.15 % |
|
$ |
1,465,045 |
|
$ |
15,253 |
|
|
4.16 % |
|
$ |
1,443,860 |
|
$ |
16,784 |
|
|
4.65 % |
FHLB advances and other borrowings |
|
107,248 |
|
|
1,172 |
|
|
4.37 % |
|
|
107,690 |
|
|
1,038 |
|
|
3.86 % |
|
|
126,918 |
|
|
1,164 |
|
|
3.67 % |
Total interest-bearing liabilities |
|
1,572,157 |
|
|
16,358 |
|
|
4.16 % |
|
|
1,572,735 |
|
|
16,291 |
|
|
4.14 % |
|
|
1,570,778 |
|
|
17,948 |
|
|
4.57 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities |
|
327,187 |
|
|
|
|
|
|
|
|
309,457 |
|
|
|
|
|
|
|
|
266,393 |
|
|
|
|
|
|
Total liabilities |
|
1,899,344 |
|
|
|
|
|
|
|
|
1,882,192 |
|
|
|
|
|
|
|
|
1,837,171 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
175,589 |
|
|
|
|
|
|
|
|
170,853 |
|
|
|
|
|
|
|
|
160,205 |
|
|
|
|
|
|
Total liabilities and equity |
$ |
2,074,933 |
|
|
|
|
|
|
|
$ |
2,053,045 |
|
|
|
|
|
|
|
$ |
1,997,376 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning assets |
$ |
405,623 |
|
|
|
|
|
|
|
$ |
380,437 |
|
|
|
|
|
|
|
$ |
330,491 |
|
|
|
|
|
|
Net interest income/interest rate spread |
|
|
|
$ |
14,001 |
|
|
1.97 % |
|
|
|
|
$ |
12,909 |
|
|
1.83 % |
|
|
|
|
$ |
11,367 |
|
|
1.59 % |
Net interest margin |
|
|
|
|
|
|
|
2.83 % |
|
|
|
|
|
|
|
|
2.64 % |
|
|
|
|
|
|
|
|
2.39 % |
Average interest-earning assets to average interest-bearing liabilities |
|
125.80 % |
|
|
|
|
|
|
|
|
124.19 % |
|
|
|
|
|
|
|
|
121.04 % |
|
|
|
|
|
|
|
|
(1) |
Average balance is computed using the carrying value of securities. Average yield is computed using the historical amortized cost average balance for available for sale securities. |
(2) |
Average yields and interest earned are stated on a fully taxable equivalent basis. |
(3) |
Average balance is computed using the recorded investment in loans net of the allowance for credit losses on loans and leases and includes nonperforming loans and leases. |
Consolidated Financial Highlights
|
|
||||||||||||||||||||||||||||||||||
|
|
At or for the three months ended |
|
|
Six months ended |
|
|||||||||||||||||||||||||||||
($ in thousands except per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
(unaudited) |
|
2025 |
|
|
2025 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
||||||||||||
Earnings and Dividends |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest income |
|
$ |
|
14,001 |
|
|
$ |
|
12,909 |
|
|
$ |
|
12,533 |
|
|
$ |
|
11,460 |
|
|
$ |
|
11,367 |
|
|
$ |
|
26,910 |
|
|
$ |
|
22,651 |
|
Provision for credit losses |
|
$ |
|
1,427 |
|
|
$ |
|
582 |
|
|
$ |
|
1,381 |
|
|
$ |
|
558 |
|
|
$ |
|
3,561 |
|
|
$ |
|
2,009 |
|
|
$ |
|
4,798 |
|
Noninterest income |
|
$ |
|
1,580 |
|
|
$ |
|
1,206 |
|
|
$ |
|
1,446 |
|
|
$ |
|
1,606 |
|
|
$ |
|
1,218 |
|
|
$ |
|
2,786 |
|
|
$ |
|
2,123 |
|
Noninterest expense |
|
$ |
|
7,754 |
|
|
$ |
|
7,954 |
|
|
$ |
|
7,433 |
|
|
$ |
|
7,226 |
|
|
$ |
|
7,092 |
|
|
$ |
|
15,708 |
|
|
$ |
|
14,279 |
|
Net income |
|
$ |
|
5,035 |
|
|
$ |
|
4,430 |
|
|
$ |
|
4,417 |
|
|
$ |
|
4,205 |
|
|
$ |
|
1,695 |
|
|
$ |
|
9,465 |
|
|
$ |
|
4,765 |
|
Basic earnings per common share |
|
$ |
|
0.77 |
|
|
$ |
|
0.68 |
|
|
$ |
|
0.68 |
|
|
$ |
|
0.65 |
|
|
$ |
|
0.26 |
|
|
$ |
|
1.46 |
|
|
$ |
|
0.74 |
|
Diluted earnings per common share |
|
$ |
|
0.77 |
|
|
$ |
|
0.68 |
|
|
$ |
|
0.68 |
|
|
$ |
|
0.65 |
|
|
$ |
|
0.26 |
|
|
$ |
|
1.45 |
|
|
$ |
|
0.74 |
|
Dividends declared per share |
|
$ |
|
0.07 |
|
|
$ |
|
0.07 |
|
|
$ |
|
0.07 |
|
|
$ |
|
0.06 |
|
|
$ |
|
0.06 |
|
|
$ |
|
0.14 |
|
|
$ |
|
0.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Performance Ratios (annualized) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Return on average assets |
|
|
|
0.97 |
% |
|
|
|
0.86 |
% |
|
|
|
0.86 |
% |
|
|
|
0.84 |
% |
|
|
|
0.34 |
% |
|
|
|
0.92 |
% |
|
|
|
0.48 |
% |
Return on average equity |
|
|
|
11.47 |
% |
|
|
|
10.37 |
% |
|
|
|
10.61 |
% |
|
|
|
10.38 |
% |
|
|
|
4.23 |
% |
|
|
|
10.93 |
% |
|
|
|
6.00 |
% |
Average yield on interest-earning |
|
|
|
6.13 |
% |
|
|
|
5.97 |
% |
|
|
|
6.16 |
% |
|
|
|
6.30 |
% |
|
|
|
6.16 |
% |
|
|
|
6.05 |
% |
|
|
|
6.12 |
% |
Average rate paid on interest-bearing |
|
|
|
4.16 |
% |
|
|
|
4.14 |
% |
|
|
|
4.40 |
% |
|
|
|
4.70 |
% |
|
|
|
4.57 |
% |
|
|
|
4.15 |
% |
|
|
|
4.54 |
% |
Average interest rate spread |
|
|
|
1.97 |
% |
|
|
|
1.83 |
% |
|
|
|
1.76 |
% |
|
|
|
1.60 |
% |
|
|
|
1.59 |
% |
|
|
|
1.90 |
% |
|
|
|
1.58 |
% |
Net interest margin, fully taxable |
|
|
|
2.83 |
% |
|
|
|
2.64 |
% |
|
|
|
2.57 |
% |
|
|
|
2.41 |
% |
|
|
|
2.39 |
% |
|
|
|
2.74 |
% |
|
|
|
2.37 |
% |
Efficiency ratio (3) |
|
|
|
49.77 |
% |
|
|
|
55.94 |
% |
|
|
|
53.17 |
% |
|
|
|
55.30 |
% |
|
|
|
56.35 |
% |
|
|
|
52.90 |
% |
|
|
|
57.64 |
% |
Noninterest expense to average |
|
|
|
1.49 |
% |
|
|
|
1.55 |
% |
|
|
|
1.45 |
% |
|
|
|
1.44 |
% |
|
|
|
1.42 |
% |
|
|
|
1.52 |
% |
|
|
|
1.43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Tier 1 capital leverage ratio (1) |
|
|
|
11.20 |
% |
|
|
|
10.55 |
% |
|
|
|
10.33 |
% |
|
|
|
10.36 |
% |
|
|
|
10.11 |
% |
|
|
|
11.20 |
% |
|
|
|
10.11 |
% |
Total risk-based capital ratio (1) |
|
|
|
14.69 |
% |
|
|
|
13.76 |
% |
|
|
|
13.60 |
% |
|
|
|
13.43 |
% |
|
|
|
13.48 |
% |
|
|
|
14.69 |
% |
|
|
|
13.48 |
% |
Tier 1 risk-based capital ratio (1) |
|
|
|
13.45 |
% |
|
|
|
12.59 |
% |
|
|
|
12.45 |
% |
|
|
|
12.35 |
% |
|
|
|
12.23 |
% |
|
|
|
13.45 |
% |
|
|
|
12.23 |
% |
Common equity tier 1 capital to risk weighted assets (1) |
|
|
|
13.45 |
% |
|
|
|
12.59 |
% |
|
|
|
12.45 |
% |
|
|
|
12.35 |
% |
|
|
|
12.23 |
% |
|
|
|
13.45 |
% |
|
|
|
12.23 |
% |
Equity to total assets at end of period |
|
|
|
8.30 |
% |
|
|
|
8.24 |
% |
|
|
|
8.15 |
% |
|
|
|
7.94 |
% |
|
|
|
7.82 |
% |
|
|
|
8.30 |
% |
|
|
|
7.82 |
% |
Book value per common share |
|
$ |
|
26.63 |
|
|
$ |
|
25.86 |
|
|
$ |
|
25.51 |
|
|
$ |
|
24.83 |
|
|
$ |
|
24.17 |
|
|
$ |
|
26.63 |
|
|
$ |
|
24.17 |
|
Tangible book value per common |
|
$ |
|
26.63 |
|
|
$ |
|
25.86 |
|
|
$ |
|
25.51 |
|
|
$ |
|
24.83 |
|
|
$ |
|
24.17 |
|
|
$ |
|
26.63 |
|
|
$ |
|
24.17 |
|
Period-end market value per |
|
$ |
|
23.97 |
|
|
$ |
|
22.04 |
|
|
$ |
|
25.54 |
|
|
$ |
|
21.65 |
|
|
$ |
|
18.76 |
|
|
$ |
|
23.97 |
|
|
$ |
|
18.76 |
|
Period-end common shares |
|
|
|
6,447,692 |
|
|
|
|
6,476,759 |
|
|
|
|
6,402,085 |
|
|
|
|
6,388,110 |
|
|
|
|
6,387,655 |
|
|
|
|
6,447,692 |
|
|
|
|
6,387,655 |
|
Average basic common shares |
|
|
|
6,300,427 |
|
|
|
|
6,285,649 |
|
|
|
|
6,258,616 |
|
|
|
|
6,253,716 |
|
|
|
|
6,256,457 |
|
|
|
|
6,293,078 |
|
|
|
|
6,293,178 |
|
Average diluted common shares |
|
|
|
6,344,833 |
|
|
|
|
6,285,649 |
|
|
|
|
6,328,710 |
|
|
|
|
6,293,908 |
|
|
|
|
6,256,457 |
|
|
|
|
6,315,281 |
|
|
|
|
6,306,878 |
|
Asset Quality |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Nonperforming loans |
|
$ |
|
16,632 |
|
|
$ |
|
14,563 |
|
|
$ |
|
14,719 |
|
|
$ |
|
14,597 |
|
|
$ |
|
10,909 |
|
|
$ |
|
16,632 |
|
|
$ |
|
10,909 |
|
Nonperforming loans to total loans |
|
|
|
0.94 |
% |
|
|
|
0.82 |
% |
|
|
|
0.87 |
% |
|
|
|
0.84 |
% |
|
|
|
0.64 |
% |
|
|
|
0.94 |
% |
|
|
|
0.64 |
% |
Nonperforming assets to total assets |
|
|
|
0.80 |
% |
|
|
|
0.72 |
% |
|
|
|
0.71 |
% |
|
|
|
0.71 |
% |
|
|
|
0.53 |
% |
|
|
|
0.80 |
% |
|
|
|
0.53 |
% |
Allowance for credit losses on loans and leases to total loans and leases |
|
|
|
1.08 |
% |
|
|
|
1.01 |
% |
|
|
|
1.00 |
% |
|
|
|
0.97 |
% |
|
|
|
1.13 |
% |
|
|
|
1.08 |
% |
|
|
|
1.13 |
% |
Allowance for credit losses on loans and leases to nonperforming loans and leases |
|
|
|
114.97 |
% |
|
|
|
122.25 |
% |
|
|
|
118.72 |
% |
|
|
|
114.96 |
% |
|
|
|
176.78 |
% |
|
|
|
114.97 |
% |
|
|
|
176.78 |
% |
Net charge-offs (recoveries) |
|
$ |
|
51 |
|
|
$ |
|
23 |
|
|
$ |
|
95 |
|
|
$ |
|
3,291 |
|
|
$ |
|
2,108 |
|
|
$ |
|
74 |
|
|
$ |
|
2,092 |
|
Annualized net charge-offs (recoveries) to average loans |
|
|
|
0.01 |
% |
|
|
|
0.01 |
% |
|
|
|
0.02 |
% |
|
|
|
0.77 |
% |
|
|
|
0.49 |
% |
|
|
|
0.01 |
% |
|
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Average Balances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Loans |
|
$ |
|
1,775,865 |
|
|
$ |
|
1,763,827 |
|
|
$ |
|
1,737,656 |
|
|
$ |
|
1,717,886 |
|
|
$ |
|
1,704,118 |
|
|
$ |
|
1,769,879 |
|
|
$ |
|
1,707,088 |
|
Assets |
|
$ |
|
2,074,933 |
|
|
$ |
|
2,053,045 |
|
|
$ |
|
2,046,032 |
|
|
$ |
|
2,000,421 |
|
|
$ |
|
1,997,376 |
|
|
$ |
|
2,064,049 |
|
|
$ |
|
2,000,785 |
|
Stockholders' equity |
|
$ |
|
175,589 |
|
|
$ |
|
170,853 |
|
|
$ |
|
166,511 |
|
|
$ |
|
162,039 |
|
|
$ |
|
160,205 |
|
|
$ |
|
173,234 |
|
|
$ |
|
158,782 |
|
|
|
(1) |
Regulatory capital ratios of |
(2) |
There are no differences between book value per common share and tangible book value per common share since the Company does not have any intangible assets. |
(3) |
The efficiency ratio equals noninterest expense (excluding amortization of intangibles and foreclosed asset writedowns) divided by net interest income plus noninterest income (excluding gains or losses on securities transactions). |
NON-GAAP FINANCIAL MEASURE
The following non-GAAP financial measure used by the Company provides information useful to investors in understanding the Company's operating performance and trends and facilitates comparisons with the performance of peers. The following table summarizes the non-GAAP financial measure derived from amounts reported in the Company's consolidated financial statements:
Pre-provision, pre-tax net revenue ("PPNR")
|
||||||||||||||||||||||||
|
Three Months Ended |
|
|
Six months ended |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
2025 |
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||||||||
Net income |
$ |
|
5,035 |
|
|
$ |
|
4,430 |
|
|
$ |
|
1,695 |
|
|
$ |
|
9,465 |
|
|
$ |
|
4,765 |
|
Add: Provision for credit losses |
|
|
1,427 |
|
|
|
|
582 |
|
|
|
|
3,561 |
|
|
|
|
2,009 |
|
|
|
|
4,798 |
|
Add: Income tax expense |
|
|
1,365 |
|
|
|
|
1,149 |
|
|
|
|
237 |
|
|
|
|
2,514 |
|
|
|
|
932 |
|
Pre-provision, pre-tax net revenue |
$ |
|
7,827 |
|
|
$ |
|
6,161 |
|
|
$ |
|
5,493 |
|
|
$ |
|
13,988 |
|
|
$ |
|
10,495 |
|
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SOURCE