WALDORF, Md., Jan. 20, 2017 (GLOBE NEWSWIRE) — The Community Financial Corporation (NASDAQ:TCFC) (the “Company”), the holding company for Community Bank of the Chesapeake (the “Bank”), reported its results of operations for the fourth quarter and year ended December 31, 2016. Consolidated net income available to common shareholders was $2.0 million for the three months ended December 31, 2016, an increase of $494,000, compared to $1.5 million for the three months ended December 31, 2015. Earnings per common share (diluted) at $0.44 increased $0.11 from $0.33 per common share (diluted) for the three months ended December 31, 2015. The Company’s returns on average assets and common stockholders’ equity for the fourth quarter of 2016 were 0.62% and 7.68%, respectively, compared to 0.55% and 6.06% , respectively, for the fourth quarter of 2015.
Consolidated net income available to common shareholders was $7.3 million for the year ended December 31, 2016, an increase of $1.0 million, compared to $6.3 million for the year ended December 31, 2015. Earnings per common share (diluted) for the full year of 2016 at $1.59 increased $0.24 from $1.35 per common share (diluted) for the year ended December 31, 2015. The Company’s returns on average assets and common stockholders’ equity, for the full year of 2016 were 0.60% and 7.09%, respectively, compared to 0.58% and 6.33%, respectively, for the full year of 2015.
William J. Pasenelli, Chief Executive Officer and Vice-Chairman of the Board, stated, “During 2016 we made substantial progress increasing operating leverage. Earnings increased due to significant loan growth and controlled noninterest expense. Net interest income increased $3.4 million or 9.2%, compared to noninterest expense growth of $741,000 or 2.6%. This was accomplished in a declining interest rate environment for most of 2016. Our 2016 loan growth of $170.3 million or 18.7% to $1,079.5 million, should position the Company to further increase operating leverage during 2017.”
During the fourth quarter, the Company’s efficiency and net operating expense ratios1 improved to 64.38% and 1.98%, respectively.
Net Interest Income
Net interest income increased 12.0% or $1.1 million to $10.5 million for the three months ended December 31, 2016 compared to $9.4 million for the three months ended December 31, 2015. Net interest margin at 3.45% for the three months ended December 31, 2016 decreased 16 basis points from 3.61% for the three months ended December 31, 2015. Average interest-earning assets were $1,213.5 million for the fourth quarter of 2016, an increase of $176.6 million or 17.0%, compared to $1,036.9 million for the same quarter of 2015.
Net interest income increased 9.2% or $3.4 million to $39.9 million for the year ended December 31, 2016 compared to $36.5 million for the year ended December 31, 2015. Net interest margin at 3.48% for the year ended December 31, 2016 decreased 12 basis points from 3.60% for the year ended December 31, 2015. Average interest-earning assets were $1,145.5 million for the full year of 2016, an increase of $132.1 million or 13.0%, compared to $1,013.4 million for the full year of 2015.
Net interest margin declined during 2016, primarily due to reduced yields on loans. Yields on the loan portfolio decreased from 4.73% for the year ended December 31, 2015 to 4.55% for the year ended December 31, 2016. Yields were reduced compared to the prior year due to the Bank’s increased investment in residential mortgages, increased competition in the Bank’s market area and low intermediate term interest rates. Interest rates were depressed for most of 2016, with the ten year U.S. Treasury rate as low as 1.37% (July 8, 2016).
Net interest margin was positively impacted by a reduction in its cost of funds during 2016, which decreased two basis points from 0.75% for the year ended December 31, 2015 to 0.73% for the year ended December 31, 2016. The Company continued to make progress in controlling deposit costs by increasing transaction deposits as a percentage of overall deposits. Average transaction deposits, which include savings, money market, interest-bearing demand and noninterest bearing demand accounts, for the year ended December 31, 2016 increased $83.4 million, or 17.1%, to $571.6 million compared to $488.2 million for the comparable period in 2015. Average transaction accounts as a percentage of total deposits increased from 56.3% for the year ended December 31, 2015 to 58.3% for the year ended December 31, 2016. The increase in average transaction deposits included growth in noninterest bearing demand deposits of $21.6 million, or 17.9%, from $120.5 million for the year ended December 31, 2015 to $142.1 million for the year ended December 31, 2016.
1 Efficiency Ratio – noninterest expense divided by the sum of net interest income and noninterest income.
Net Operating Expense Ratio – noninterest expense less noninterest income divided by average assets.
Noninterest Income
Noninterest income was flat at $891,000 for the three months ended December 31, 2016 compared to $909,000 for the three months ended December 31, 2015.
Noninterest income increased by $61,000 to $3.4 million for the year ended December 31, 2016 compared to $3.3 million for the year ended December 31, 2015. Noninterest income was up $187,000 compared to the prior year due to higher service charge income from the growth in the number of customer accounts, wealth services and rental income on other real estate owned (“OREO”) properties. In addition, there were no losses recognized in 2016 for the sale of branch assets. During the third quarter 2015, the Bank recorded an expense of $426,000 to account for the loss on the sale of the King George, Virginia branch building and equipment. These increases to noninterest income were partially offset by decreases to noninterest income from the Company’s exit from the origination of residential first mortgage loans during the second quarter of 2015. There were no gains on residential loans held for sale in the year ended December 31, 2016 compared to $104,000 for the year ended December 31, 2015. In addition, the Company recognized losses of $436,000 on the disposition of OREO for the year ended December 31, 2016 compared to $20,000 in OREO losses recognized for the comparable period.
Noninterest Expense
Noninterest expense was controlled at an average run rate of just below $7.3 million per quarter during 2016. The Company remained focused during 2016 on its initiative to control the growth of expenses by streamlining internal processes and reviewing vendor relationships. These efforts resulted in a reduction in nine FTEs from 171 employees to 162 employees during the year ended December 31, 2016. The Company’s strategy to create operating leverage through continued asset growth combined with controlling the growth in expenses is expected to continue during 2017.
For the three months ended December 31, 2016, noninterest expense decreased 3.2%, or $240,000, to $7.3 million from $7.6 million for the comparable period in 2015. The Company’s efficiency ratio for the three months ended December 31, 2016 and 2015 was 64.38% and 73.67% ,respectively. The Company’s net operating expense ratio as a percentage of average assets for the three months ended December 31, 2016 and 2015 was 1.98% and 2.38%, respectively. These ratios improved in each successive quarter during 2016. The following is a summary breakdown of noninterest expense:
| Three Months Ended December 31, | |||||||||||||
| (dollars in thousands) | 2016 | 2015 | $ Change | % Change | |||||||||
| Compensation and Benefits | $ | 4,193 | $ | 4,148 | $ | 45 | 1.1 | % | |||||
| OREO Valuation Allowance and Expenses | 252 | 377 | (125 | ) | (33.2 | %) | |||||||
| Operating Expenses | 2,871 | 3,031 | (160 | ) | (5.3 | %) | |||||||
| Total Noninterest Expense | $ | 7,316 | $ | 7,556 | $ | (240 | ) | (3.2 | %) | ||||
For the year ended December 31, 2016, noninterest expense increased 2.6%, or $741,000, to $29.2 million from $28.4 million for the comparable period in 2015. The Company’s 2015 total growth in salary and benefit costs was 3.2% compared to 2.7% growth during 2016. The Company’s efficiency ratio for the year ended December 31, 2016 and 2015 was 67.40% and 71.35%, respectively. The Company’s net operating expense ratio as a percentage of average assets for the year ended December 31, 2016 and 2015 was 2.10% and 2.30%, respectively. The following is a summary breakdown of noninterest expense:
| Years Ended December 31, | |||||||||||||
| (dollars in thousands) | 2016 | 2015 | $ Change | % Change | |||||||||
| Compensation and Benefits | $ | 16,810 | $ | 16,366 | $ | 444 | 2.7 | % | |||||
| OREO Valuation Allowance and Expenses | 861 | 1,059 | (198 | ) | (18.7 | %) | |||||||
| Operating Expenses | 11,488 | 10,993 | 495 | 4.5 | % | ||||||||
| Total Noninterest Expense | $ | 29,159 | $ | 28,418 | $ | 741 | 2.6 | % | |||||
Balance Sheet and Asset Quality
Balance Sheet
Total assets at December 31, 2016 were $1.33 billion, an increase of $190.9 million, or 16.7% compared to total assets of $1.14 billion at December 31, 2015. The increase in total assets was primarily attributable to growth in loans. Net loans increased $170.3 million, or 18.7% from $909.2 million at December 31, 2015 to $1,079.5 million at December 31, 2016, mainly due to increases in loans secured by commercial real estate and residential first mortgages.
Prior to April 1, 2016, loans secured by residential rental property were included in the residential first mortgage and commercial real estate loan portfolios. Beginning in the second quarter of 2016, the Company segregated loans secured by residential rental property into a new loan portfolio segment. Residential rental property includes income producing properties comprising 1-4 family units and apartment buildings. The Company’s decision to segregate the residential rental property portfolio for financial reporting was based on the growth and size of the portfolio and risk characteristics unique to residential rental properties.
The following is a breakdown of the Company’s loan portfolio at December 31, 2016 and December 31, 2015:
| (dollars in thousands) | December 31, 2016 | % | December 31, 2015 | % | ||||||||||
| Commercial real estate | $ | 667,105 | 61.28 | % | $ | 538,888 | 58.64 | % | ||||||
| Residential first mortgages | 171,004 | 15.70 | % | 131,401 | 14.30 | % | ||||||||
| Residential rentals | 101,897 | 9.36 | % | 93,157 | 10.14 | % | ||||||||
| Construction and land development | 36,934 | 3.39 | % | 36,189 | 3.94 | % | ||||||||
| Home equity and second mortgages | 21,399 | 1.97 | % | 21,716 | 2.36 | % | ||||||||
| Commercial loans | 50,484 | 4.64 | % | 67,246 | 7.32 | % | ||||||||
| Consumer loans | 422 | 0.04 | % | 366 | 0.04 | % | ||||||||
| Commercial equipment | 39,737 | 3.65 | % | 29,931 | 3.26 | % | ||||||||
| 1,088,982 | 100.00 | % | 918,894 | 100.00 | % | |||||||||
| Less: | ||||||||||||||
| Deferred loan fees and premiums | (397 | ) | -0.04 | % | 1,154 | 0.13 | % | |||||||
| Allowance for loan losses | 9,860 | 0.91 | % | 8,540 | 0.93 | % | ||||||||
| 9,463 | 9,694 | |||||||||||||
| $ | 1,079,519 | $ | 909,200 | |||||||||||
Deposits increased by 14.5% or $131.9 million, to $1,038.8 million at December 31, 2016 compared to $906.9 million at December 31, 2015. Between 2012 and 2016, the Company increased transaction deposits, including noninterest bearing deposits, to lower its overall cost of funds. Transaction deposits have increased from 44.9% of total deposits at December 31, 2011 to 58.3% of total deposits at December 31, 2016.
The Company uses both traditional brokered deposits and reciprocal brokered deposits. Traditional brokered deposits at December 31, 2016 and December 31, 2015 were $131.0 million and $49.1 million, respectively. Reciprocal brokered deposits at December 31, 2016 and December 31, 2015 were $70.7 million and $61.1 million, respectively. Reciprocal brokered deposits are used to maximize FDIC insurance available to our customers. The following is a breakdown of the Company’s deposit portfolio at December 31, 2016 and December 31, 2015:
| December 31, 2016 | December 31, 2015 | ||||||||||||
| (dollars in thousands) | Balance | % | Balance | % | |||||||||
| Noninterest-bearing demand | $ | 144,877 | 13.95 | % | $ | 142,771 | 15.74 | % | |||||
| Interest-bearing: | |||||||||||||
| Demand | 162,823 | 15.67 | % | 120,918 | 13.33 | % | |||||||
| Money market deposits | 248,049 | 23.88 | % | 219,956 | 24.25 | % | |||||||
| Savings | 50,284 | 4.84 | % | 47,703 | 5.26 | % | |||||||
| Certificates of deposit | 432,792 | 41.66 | % | 375,551 | 41.41 | % | |||||||
| Total interest-bearing | 893,948 | 86.05 | % | 764,128 | 84.26 | % | |||||||
| Total Deposits | $ | 1,038,825 | 100.00 | % | $ | 906,899 | 100.00 | % | |||||
| Transaction accounts | $ | 606,033 | 58.34 | % | $ | 531,348 | 58.59 | % | |||||
Long-term debt and short-term borrowings increased $52.9 million from $91.6 million at December 31, 2015 to $144.6 million at December 31, 2016. The Company uses brokered deposits and other wholesale funding to supplement funding when loan growth exceeds core deposit growth and for asset-liability management purposes.
During the year ended December 31, 2016, stockholders’ equity increased $4.6 million to $104.4 million. The increase in stockholders’ equity was due to net income of $7.3 million and net stock related activities related to stock-based compensation of $669,000. These increases to capital were partially offset by quarterly common dividends paid of $1.8 million, repurchases of common stock of $865,000 and a current year increase in accumulated other comprehensive loss of $677,000. Common stockholders’ equity of $104.4 million at December 31, 2016 resulted in a book value of $22.54 per common share compared to $21.48 at December 31, 2015. The Company remains well-capitalized at December 31, 2016 with a Tier 1 capital to average assets ratio of 9.02%.
Asset Quality
The Company continues to pursue its approach of maximizing contractual rights with individual classified customer relationships. The objective is to move non-performing or substandard credits that are not likely to become performing or passing credits in a reasonable timeframe off the balance sheet. The Company is encouraging existing classified customers to obtain financing with other lenders or enforcing its contractual rights. Management believes this strategy is in the best long-term interest of the Company. As a result of these efforts, non-accrual loans and OREO to total assets decreased 62 basis points from 1.83% at December 31, 2015 to 1.21% at December 31, 2016. Non-accrual loans, OREO and TDRs to total assets decreased $7.4 million or 99 basis points from $34.0 million or 2.98%, at December 31, 2015 to $26.6 million or 1.99%, at December 31, 2016.
Management considers classified assets to be an important measure of asset quality. Classified assets have been trending downward the last several years from a high point of greater than $81.9 million at December 31, 2011. Classified assets decreased $4.1 million or 9.5% during 2016 from $43.3 million at December 31, 2015 to $39.2 million as of December 31, 2016.
The following is a breakdown of the Company’s classified and special mention assets at December 31, 2016, 2015, 2014, 2013, and 2012, respectively:
| Classified Assets and Special Mention Assets | ||||||||||||||||||||||||||||||||
| (dollars in thousands) | As of 12/31/2016 |
As of 12/31/2015 |
As of 12/31/2014 |
As of 12/31/2013 |
As of 12/31/2012 |
|||||||||||||||||||||||||||
| Classified loans | ||||||||||||||||||||||||||||||||
| Substandard | $ | 30,462 | $ | 31,943 | $ | 46,735 | $ | 47,645 | $ | 48,676 | ||||||||||||||||||||||
| Doubtful | 137 | 861 | – | – | – | |||||||||||||||||||||||||||
| Loss | – | – | – | – | – | |||||||||||||||||||||||||||
| Total classified loans | 30,599 | 32,804 | 46,735 | 47,645 | 48,676 | |||||||||||||||||||||||||||
| Special mention loans | – | 1,642 | 5,460 | 9,246 | 6,092 | |||||||||||||||||||||||||||
| Total classified and special mention loans |
$ | 30,599 | $ | 34,446 | $ | 52,195 | $ | 56,891 | $ | 54,768 | ||||||||||||||||||||||
| Classified loans | 30,599 | 32,804 | 46,735 | 47,645 | 48,676 | |||||||||||||||||||||||||||
| Classified securities | 884 | 1,093 | 1,404 | 2,438 | 3,028 | |||||||||||||||||||||||||||
| Other real estate owned | 7,763 | 9,449 | 5,883 | 6,797 | 6,891 | |||||||||||||||||||||||||||
| Total classified assets | $ | 39,246 | $ | 43,346 | $ | 54,022 | $ | 56,880 | $ | 58,595 | ||||||||||||||||||||||
| As a percentage of Total Assets | 2.94 | % | 3.79 | % | 4.99 | % | 5.56 | % | 5.97 | % | ||||||||||||||||||||||
| As a percentage of Risk Based Capital | 26.13 | % | 30.19 | % | 39.30 | % | 43.11 | % | 59.02 | % | ||||||||||||||||||||||
The allowance for loan losses was 0.91% of gross loans at December 31, 2016 and 0.93% at December 31, 2015. Management’s determination of the adequacy of the allowance is based on a periodic evaluation of the portfolio with consideration given to: overall loss experience; current economic conditions; size, growth and composition of the loan portfolio; financial condition of the borrowers; current appraised values of underlying collateral and other relevant factors that, in management’s judgment, warrant recognition in determining an adequate allowance. Improvements to baseline charge-off factors for the periods used to evaluate the adequacy of the allowance as well as improvements in some qualitative factors, such as reductions in classified assets and delinquency, were offset by increases in other qualitative factors, such as increased loan growth. The specific allowance is based on management’s estimate of realizable value for particular loans. Management believes that the allowance is adequate. The Company increased its general allowance as a percentage of gross loans four basis points from 0.75% at December 31, 2015 to 0.79% at December 31, 2016. The following is a breakdown of the Company’s general and specific allowances as a percentage of gross loans at December 31, 2016 and December 31, 2015, respectively:
| (dollar in thousands) | December 31, 2016 |
% of Gross Loans |
December 31, 2015 |
% of Gross Loans |
||||||||
| General Allowance | $ | 8,571 | 0.79 | % | $ | 6,932 | 0.75 | % | ||||
| Specific Allowance | 1,289 | 0.12 | % | 1,608 | 0.18 | % | ||||||
| Total Allowance | $ | 9,860 | 0.91 | % | $ | 8,540 | 0.93 | % | ||||
The historical loss experience factor is tracked over various time horizons for each portfolio segment. The historical loss experience factor’s impact on the general component of the allowance has decreased as the Company’s charge-off history has improved. The following table provides a five-year trend of net charge-offs as a percentage of average loans.
| Years Ended December 31, | ||||||||||||||||||||||||
| (dollars in thousands) | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||
| Average loans | $ | 988,288 | $ | 874,186 | $ | 819,381 | $ | 741,369 | $ | 719,798 | $ | 671,242 | ||||||||||||
| Net charge-offs | 1,039 | 1,374 | 2,309 | 1,049 | 1,937 | 4,101 | ||||||||||||||||||
| Net charge-offs to average loans |
0.11 | % | 0.16 | % | 0.28 | % | 0.14 | % | 0.27 | % | 0.61 | % | ||||||||||||
About The Community Financial Corporation – The Company is the bank holding company for Community Bank of the Chesapeake. Headquartered in Waldorf, Maryland, Community Bank of the Chesapeake is a full-service commercial bank, with assets over $1.3 billion. Through its 12 banking centers and five commercial lending centers, Community Bank of the Chesapeake offers a broad range of financial products and services to individuals and businesses. The Company’s banking centers are located at its main office in Waldorf, Maryland, and 11 branch offices in Waldorf, Bryans Road, Dunkirk, Leonardtown, La Plata, Charlotte Hall, Prince Frederick, Lusby and California, Maryland; and Central Park and downtown Fredericksburg, Virginia.
Forward-looking Statements – This news release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements can generally be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Statements in this release that are not strictly historical are forward-looking and are based upon current expectations that may differ materially from actual results. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated by the statements made herein. These risks and uncertainties involve general economic trends, changes in interest rates, loss of deposits and loan demand to other financial institutions, substantial changes in financial markets; changes in real estate value and the real estate market, regulatory changes, possibility of unforeseen events affecting the industry generally, the uncertainties associated with newly developed or acquired operations, the outcome of litigation that may arise, market disruptions and other effects of terrorist activities and the matters described in “Item 1A Risk Factors” in the Company’s Annual Report on Form 10-K for the Year Ended December 31, 2015. The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events, except as required under the rules and regulations of the Securities and Exchange Commission.
Data is unaudited as of December 31, 2016. This selected information should be read in conjunction with the financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.
| THE COMMUNITY FINANCIAL CORPORATION | |||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
| Unaudited | |||||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
| (dollars in thousands, except per share amounts ) | 2016 | 2015 | 2016 | 2015 | |||||||||||
| Interest and Dividend Income | |||||||||||||||
| Loans, including fees | $ | 11,744 | $ | 10,500 | $ | 44,919 | $ | 41,386 | |||||||
| Interest and dividends on investment securities | 835 | 705 | 3,108 | 2,473 | |||||||||||
| Interest on deposits with banks | 5 | 3 | 20 | 14 | |||||||||||
| Total Interest and Dividend Income | 12,584 | 11,208 | 48,047 | 43,873 | |||||||||||
| Interest Expense | |||||||||||||||
| Deposits | 1,210 | 1,054 | 4,695 | 4,152 | |||||||||||
| Short-term borrowings | 73 | 11 | 196 | 37 | |||||||||||
| Long-term debt | 828 | 795 | 3,251 | 3,156 | |||||||||||
| Total Interest Expense | 2,111 | 1,860 | 8,142 | 7,345 | |||||||||||
| Net Interest Income | 10,473 | 9,348 | 39,905 | 36,528 | |||||||||||
| Provision for loan losses | 670 | 362 | 2,359 | 1,433 | |||||||||||
| Net Interest Income After Provision For Loan Losses | 9,803 | 8,986 | 37,546 | 35,095 | |||||||||||
| Noninterest Income | |||||||||||||||
| Loan appraisal, credit, and miscellaneous charges | 66 | 106 | 289 | 315 | |||||||||||
| Gain on sale of asset | 8 | – | 12 | 19 | |||||||||||
| Net gains (losses) on sale of OREO | 4 | – | (436 | ) | (20 | ) | |||||||||
| Net gains (losses) on sale of investment securities | (8 | ) | 5 | 31 | 4 | ||||||||||
| Loss on premises and equipment held for sale | – | – | – | (426 | ) | ||||||||||
| Income from bank owned life insurance | 196 | 199 | 789 | 815 | |||||||||||
| Service charges | 625 | 599 | 2,675 | 2,488 | |||||||||||
| Gain on sale of loans held for sale | – | – | – | 104 | |||||||||||
| Total Noninterest Income | 891 | 909 | 3,360 | 3,299 | |||||||||||
| Noninterest Expense | |||||||||||||||
| Salary and employee benefits | 4,193 | 4,148 | 16,810 | 16,366 | |||||||||||
| Occupancy expense | 666 | 593 | 2,488 | 2,427 | |||||||||||
| Advertising | 138 | 133 | 647 | 583 | |||||||||||
| Data processing expense | 589 | 544 | 2,267 | 2,044 | |||||||||||
| Professional fees | 455 | 403 | 1,568 | 1,323 | |||||||||||
| Depreciation of furniture, fixtures, and equipment | 204 | 195 | 812 | 810 | |||||||||||
| Telephone communications | 41 | 47 | 174 | 188 | |||||||||||
| Office supplies | 31 | 49 | 136 | 157 | |||||||||||
| FDIC Insurance | 97 | 214 | 739 | 799 | |||||||||||
| OREO valuation allowance and expenses | 252 | 377 | 861 | 1,059 | |||||||||||
| Other | 650 | 853 | 2,657 | 2,662 | |||||||||||
| Total Noninterest Expense | 7,316 | 7,556 | 29,159 | 28,418 | |||||||||||
| Income before income taxes | 3,378 | 2,339 | 11,747 | 9,976 | |||||||||||
| Income tax expense | 1,356 | 811 | 4,416 | 3,633 | |||||||||||
| Net Income | $ | 2,022 | $ | 1,528 | $ | 7,331 | $ | 6,343 | |||||||
| Preferred stock dividends | – | – | – | 23 | |||||||||||
| Net Income Available to Common Stockholders | $ | 2,022 | $ | 1,528 | $ | 7,331 | $ | 6,320 | |||||||
| Earnings Per Common Share | |||||||||||||||
| Basic | $ | 0.44 | $ | 0.33 | $ | 1.60 | $ | 1.36 | |||||||
| Diluted | $ | 0.44 | $ | 0.33 | $ | 1.59 | $ | 1.35 | |||||||
| Cash dividends paid per common share | $ | 0.10 | $ | 0.10 | $ | 0.40 | $ | 0.40 | |||||||
| THE COMMUNITY FINANCIAL CORPORATION | ||||||||||||||||||||||||||||||||||||
| AVERAGE CONSOLIDATED BALANCE SHEETS AND NET INTEREST INCOME | ||||||||||||||||||||||||||||||||||||
| UNAUDITED | ||||||||||||||||||||||||||||||||||||
| For the Three Months Ended December 31, | For the Years Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||||||||||||||||||||
| Average | Yield/ | Average | Yield/ | Average | Yield/ | Average | Yield/ | |||||||||||||||||||||||||||||
| dollars in thousands | Balance | Interest | Cost | Balance | Interest | Cost | Balance | Interest | Cost | Balance | Interest | Cost | ||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||||||||||||
| Loan portfolio | $ | 1,049,998 | $ | 11,744 | 4.47 | % | $ | 888,799 | $ | 10,500 | 4.73 | % | $ | 988,288 | $ | 44,919 | 4.55 | % | $ | 874,186 | $ | 41,386 | 4.73 | % | ||||||||||||
| Investment securities, federal funds | ||||||||||||||||||||||||||||||||||||
| sold and interest-bearing deposits | 163,548 | 840 | 2.05 | % | 148,181 | 708 | 1.91 | % | 157,173 | 3,128 | 1.99 | % | 139,256 | 2,487 | 1.79 | % | ||||||||||||||||||||
| Total Interest-Earning Assets | 1,213,546 | 12,584 | 4.15 | % | 1,036,980 | 11,208 | 4.32 | % | 1,145,461 | 48,047 | 4.19 | % | 1,013,442 | 43,873 | 4.33 | % | ||||||||||||||||||||
| Cash and cash equivalents | 12,725 | 12,466 | 11,858 | 12,192 | ||||||||||||||||||||||||||||||||
| Other assets | 71,458 | 67,990 | 72,151 | 67,272 | ||||||||||||||||||||||||||||||||
| Total Assets | $ | 1,297,729 | $ | 1,117,436 | $ | 1,229,470 | $ | 1,092,906 | ||||||||||||||||||||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||
| Savings | $ | 50,631 | $ | 7 | 0.06 | % | $ | 46,829 | $ | 12 | 0.10 | % | $ | 48,878 | $ | 39 | 0.08 | % | $ | 44,963 | $ | 45 | 0.10 | % | ||||||||||||
| Interest-bearing demand and money | ||||||||||||||||||||||||||||||||||||
| market accounts | 408,823 | 291 | 0.28 | % | 337,753 | 244 | 0.29 | % | 380,592 | 1,128 | 0.30 | % | 322,717 | 904 | 0.28 | % | ||||||||||||||||||||
| Certificates of deposit | 415,251 | 912 | 0.88 | % | 375,271 | 799 | 0.85 | % | 409,621 | 3,528 | 0.86 | % | 378,179 | 3,203 | 0.85 | % | ||||||||||||||||||||
| Long-term debt | 65,564 | 373 | 2.28 | % | 61,980 | 355 | 2.29 | % | 60,503 | 1,456 | 2.41 | % | 68,924 | 1,557 | 2.26 | % | ||||||||||||||||||||
| Short-term debt | 58,658 | 73 | 0.50 | % | 18,797 | 11 | 0.23 | % | 39,802 | 196 | 0.49 | % | 13,463 | 37 | 0.27 | % | ||||||||||||||||||||
| Subordinated Notes | 23,000 | 360 | 6.26 | % | 23,000 | 359 | 6.24 | % | 23,000 | 1,438 | 6.25 | % | 20,732 | 1,290 | 6.22 | % | ||||||||||||||||||||
| Guaranteed preferred beneficial interest | ||||||||||||||||||||||||||||||||||||
| in junior subordinated debentures | 12,000 | 95 | 3.17 | % | 12,000 | 80 | 2.67 | % | 12,000 | 357 | 2.98 | % | 12,000 | 309 | 2.58 | % | ||||||||||||||||||||
| Total Interest-Bearing Liabilities | 1,033,927 | 2,111 | 0.82 | % | 875,630 | 1,860 | 0.85 | % | 974,396 | 8,142 | 0.84 | % | 860,978 | 7,345 | 0.85 | % | ||||||||||||||||||||
| Noninterest-bearing demand deposits | 148,327 | 130,811 | 142,116 | 120,527 | ||||||||||||||||||||||||||||||||
| Other liabilities | 10,230 | 10,211 | 9,561 | 9,244 | ||||||||||||||||||||||||||||||||
| Stockholders’ equity | 105,245 | 100,784 | 103,397 | 102,157 | ||||||||||||||||||||||||||||||||
| Total Liabilities and Stockholders’ Equity | $ | 1,297,729 | $ | 1,117,436 | $ | 1,229,470 | $ | 1,092,906 | ||||||||||||||||||||||||||||
| Net interest income | $ | 10,473 | $ | 9,348 | $ | 39,905 | $ | 36,528 | ||||||||||||||||||||||||||||
| Interest rate spread | 3.33 | % | 3.47 | % | 3.35 | % | 3.48 | % | ||||||||||||||||||||||||||||
| Net yield on interest-earning assets | 3.45 | % | 3.61 | % | 3.48 | % | 3.60 | % | ||||||||||||||||||||||||||||
| Ratio of average interest-earning assets | ||||||||||||||||||||||||||||||||||||
| to average interest bearing liabilities | 117.37 | % | 118.43 | % | 117.56 | % | 117.71 | % | ||||||||||||||||||||||||||||
| Cost of funds | 0.71 | % | 0.74 | % | 0.73 | % | 0.75 | % | ||||||||||||||||||||||||||||
| Cost of deposits | 0.47 | % | 0.47 | % | 0.48 | % | 0.48 | % | ||||||||||||||||||||||||||||
| Cost of debt | 2.26 | % | 2.78 | % | 2.55 | % | 2.77 | % | ||||||||||||||||||||||||||||
| Note: Loan average balance includes non-accrual loans. There are no tax equivalency adjustments. | ||||||||||||||||||||||||||||||||||||
| THE COMMUNITY FINANCIAL CORPORATION | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| December 31, 2016 | December 31, 2015 | |||||||
| (dollars in thousands) | (Unaudited) | |||||||
| Assets | ||||||||
| Cash and due from banks | $ | 9,948 | $ | 9,059 | ||||
| Federal funds sold | – | 225 | ||||||
| Interest-bearing deposits with banks | 1,315 | 1,855 | ||||||
| Securities available for sale (AFS), at fair value | 53,033 | 35,116 | ||||||
| Securities held to maturity (HTM), at amortized cost | 109,247 | 109,420 | ||||||
| Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) stock – at cost | 7,235 | 6,931 | ||||||
| Loans receivable – net of allowance for loan losses of $9,860 and $8,540 | 1,079,519 | 909,200 | ||||||
| Premises and equipment, net | 22,550 | 20,156 | ||||||
| Premises and equipment held for sale | – | 2,000 | ||||||
| Other real estate owned (OREO) | 7,763 | 9,449 | ||||||
| Accrued interest receivable | 3,979 | 3,218 | ||||||
| Investment in bank owned life insurance | 28,625 | 27,836 | ||||||
| Other assets | 11,043 | 8,867 | ||||||
| Total Assets | $ | 1,334,257 | $ | 1,143,332 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Liabilities | ||||||||
| Deposits | ||||||||
| Non-interest-bearing deposits | $ | 144,877 | $ | 142,771 | ||||
| Interest-bearing deposits | 893,948 | 764,128 | ||||||
| Total deposits | 1,038,825 | 906,899 | ||||||
| Short-term borrowings | 79,000 | 36,000 | ||||||
| Long-term debt | 65,559 | 55,617 | ||||||
| Guaranteed preferred beneficial interest in | ||||||||
| junior subordinated debentures (TRUPs) | 12,000 | 12,000 | ||||||
| Subordinated notes – 6.25% | 23,000 | 23,000 | ||||||
| Accrued expenses and other liabilities | 11,447 | 10,033 | ||||||
| Total Liabilities | 1,229,831 | 1,043,549 | ||||||
| Stockholders’ Equity | ||||||||
| Common stock – par value $.01; authorized – 15,000,000 shares; | ||||||||
| issued 4,633,868 and 4,645,429 shares, respectively | 46 | 46 | ||||||
| Additional paid in capital | 47,377 | 46,809 | ||||||
| Retained earnings | 58,100 | 53,495 | ||||||
| Accumulated other comprehensive loss | (928 | ) | (251 | ) | ||||
| Unearned ESOP shares | (169 | ) | (316 | ) | ||||
| Total Stockholders’ Equity | 104,426 | 99,783 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 1,334,257 | $ | 1,143,332 | ||||
| THE COMMUNITY FINANCIAL CORPORATION | ||||||||||||||||
| SELECTED CONSOLIDATED FINANCIAL DATA | (Unaudited) | |||||||||||||||
| Three Months Ended (Unaudited) | Years Ended |
|||||||||||||||
| December 31, 2016 | December 31, 2015 | December 31, 2016 |
December 31, 2015 |
|||||||||||||
| KEY OPERATING RATIOS | ||||||||||||||||
| Return on average assets | 0.62 | % | 0.55 | % | 0.60 | % | 0.58 | % | ||||||||
| Return on average common equity | 7.68 | 6.06 | 7.09 | 6.33 | ||||||||||||
| Return on average total equity | 7.68 | 6.06 | 7.09 | 6.21 | ||||||||||||
| Average total equity to average total assets | 8.11 | 9.02 | 8.41 | 9.35 | ||||||||||||
| Interest rate spread | 3.33 | 3.47 | 3.35 | 3.48 | ||||||||||||
| Net interest margin | 3.45 | 3.61 | 3.48 | 3.60 | ||||||||||||
| Cost of funds | 0.71 | 0.74 | 0.73 | 0.75 | ||||||||||||
| Cost of deposits | 0.47 | 0.47 | 0.48 | 0.48 | ||||||||||||
| Cost of debt | 2.26 | 2.78 | 2.55 | 2.77 | ||||||||||||
| Efficiency ratio | 64.38 | 73.67 | 67.40 | 71.35 | ||||||||||||
| Non-interest expense to average assets | 2.26 | 2.70 | 2.37 | 2.60 | ||||||||||||
| Net operating expense to average assets | 1.98 | 2.38 | 2.10 | 2.30 | ||||||||||||
| Avg. int-earning assets to avg. int-bearing liabilities | 117.37 | 118.43 | 117.56 | 117.71 | ||||||||||||
| Net charge-offs to average loans | 0.18 | 0.09 | 0.11 | 0.16 | ||||||||||||
| COMMON SHARE DATA | ||||||||||||||||
| Basic net income per common share | $ | 0.44 | $ | 0.33 | $ | 1.60 | $ | 1.36 | ||||||||
| Diluted net income per common share | 0.44 | 0.33 | 1.59 | 1.35 | ||||||||||||
| Cash dividends paid per common share | 0.10 | 0.10 | 0.40 | 0.40 | ||||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 4,574,707 | 4,605,033 | 4,587,598 | 4,639,700 | ||||||||||||
| Diluted | 4,606,676 | 4,642,081 | 4,617,870 | 4,676,748 | ||||||||||||
| (Unaudited) | ||||||||||||||||
| (dollars in thousands, except per share amounts) | December 31, 2016 | December 31, 2015 | $ Change |
% Change |
||||||||||||
| ASSET QUALITY | ||||||||||||||||
| Total assets | $ | 1,334,257 | $ | 1,143,332 | $ | 190,925 | 16.7 | % | ||||||||
| Gross loans | 1,088,982 | 918,894 | 170,088 | 18.5 | ||||||||||||
| Classified Assets | 39,246 | 43,346 | (4,100 | ) | (9.5 | ) | ||||||||||
| Allowance for loan losses | 9,860 | 8,540 | 1,320 | 15.5 | ||||||||||||
| Past due loans (PDLs) (31 to 89 days) | 1,034 | 948 | 86 | 9.1 | ||||||||||||
| Nonperforming loans (NPLs) (>=90 days) | 7,705 | 10,740 | (3,035 | ) | (28.3 | ) | ||||||||||
| Non-accrual loans (a) | 8,374 | 11,433 | (3,059 | ) | (26.8 | ) | ||||||||||
| Accruing troubled debt restructures (TDRs) (b) | 10,448 | 13,133 | (2,685 | ) | (20.4 | ) | ||||||||||
| Other real estate owned (OREO) | 7,763 | 9,449 | (1,686 | ) | (17.8 | ) | ||||||||||
| Non-accrual loans, OREO and TDRs | $ | 26,585 | $ | 34,015 | $ | (7,430 | ) | (21.8 | ) | |||||||
| ASSET QUALITY RATIOS | ||||||||||||||||
| Classified assets to total assets | 2.94 | % | 3.79 | % | ||||||||||||
| Classified assets to risk-based capital | 26.13 | 30.19 | ||||||||||||||
| Allowance for loan losses to total loans | 0.91 | 0.93 | ||||||||||||||
| Allowance for loan losses to nonperforming loans | 127.97 | 79.52 | ||||||||||||||
| Past due loans (PDLs) to total loans | 0.09 | 0.10 | ||||||||||||||
| Nonperforming loans (NPLs) to total loans | 0.71 | 1.17 | ||||||||||||||
| Loan delinquency (PDLs + NPLs) to total loans | 0.80 | 1.27 | ||||||||||||||
| Non-accrual loans to total loans | 0.77 | 1.24 | ||||||||||||||
| Non-accrual loans and TDRs to total loans | 1.73 | 2.67 | ||||||||||||||
| Non-accrual loans and OREO to total assets | 1.21 | 1.83 | ||||||||||||||
| Non-accrual loans, OREO and TDRs to total assets | 1.99 | 2.98 | ||||||||||||||
| COMMON SHARE DATA | ||||||||||||||||
| Book value per common share | $ | 22.54 | $ | 21.48 | ||||||||||||
| Common shares outstanding at end of period | 4,633,868 | 4,645,429 | ||||||||||||||
| OTHER DATA | ||||||||||||||||
| Number of: | ||||||||||||||||
| Full-time equivalent employees | 162 | 171 | ||||||||||||||
| Branches | 12 | 12 | ||||||||||||||
| Loan Production Offices | 5 | 5 | ||||||||||||||
| REGULATORY CAPITAL RATIOS | ||||||||||||||||
| Tier 1 capital to average assets | 9.02 | 10.01 | % | |||||||||||||
| Tier 1 common capital to risk-weighted assets | 9.54 | 10.16 | ||||||||||||||
| Tier 1 capital to risk-weighted assets | 10.62 | 11.38 | ||||||||||||||
| Total risk-based capital to risk-weighted assets | 13.60 | 14.58 | ||||||||||||||
| (a) Non-accrual loans include all loans that are 90 days or more delinquent and loans that are non-accrual due to the operating results or cash flows of a customer. Non-accrual loans can include loans that are current with all loan payments. Interest and principal are recognized on a cash-basis in accordance with the Bank’s policy if the loans are not impaired or there is no impairment. | ||||||||||||||||
| (b) At December 31, 2016 and 2015, the Bank had total TDRs of $15.1 million and $18.6 million, respectively, with four and three TDR relationships totaling $4.7 million and $5.4 million, respectively, in non-accrual status. These loans are classified as non-accrual loans for the calculation of financial ratios. | ||||||||||||||||
| THE COMMUNITY FINANCIAL CORPORATION | ||||||||||||||||||
| SUPPLEMENTAL QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||||||
| Three Months Ended | ||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||
| (dollars in thousands, except per share amounts ) | 2016 | 2016 | 2016 | 2016 | 2015 | |||||||||||||
| Interest and Dividend Income | ||||||||||||||||||
| Loans, including fees | $ | 11,744 | $ | 11,460 | $ | 11,170 | $ | 10,545 | $ | 10,500 | ||||||||
| Interest and dividends on securities | 835 | 758 | 752 | 763 | 705 | |||||||||||||
| Interest on deposits with banks | 5 | 5 | 6 | 4 | 3 | |||||||||||||
| Total Interest and Dividend Income | 12,584 | 12,223 | 11,928 | 11,312 | 11,208 | |||||||||||||
| Interest Expense | ||||||||||||||||||
| Deposits | 1,210 | 1,209 | 1,182 | 1,095 | 1,054 | |||||||||||||
| Short-term borrowings | 73 | 36 | 49 | 38 | 11 | |||||||||||||
| Long-term debt | 828 | 834 | 802 | 786 | 795 | |||||||||||||
| Total Interest Expense | 2,111 | 2,079 | 2,033 | 1,919 | 1,860 | |||||||||||||
| Net Interest Income (NII) | 10,473 | 10,144 | 9,895 | 9,393 | 9,348 | |||||||||||||
| Provision for loan losses | 670 | 698 | 564 | 427 | 362 | |||||||||||||
| NII After Provision For Loan Losses | 9,803 | 9,446 | 9,331 | 8,966 | 8,986 | |||||||||||||
| Noninterest Income | ||||||||||||||||||
| Loan appraisal, credit, and misc. charges | 66 | 60 | 102 | 61 | 106 | |||||||||||||
| Gain on sale of asset | 8 | – | 4 | – | – | |||||||||||||
| Net (losses) gains on sale of OREO | 4 | 3 | (448 | ) | 5 | – | ||||||||||||
| Net (losses) gains on sale of investment securities | (8 | ) | – | 39 | – | 5 | ||||||||||||
| Income from bank owned life insurance | 196 | 199 | 198 | 196 | 199 | |||||||||||||
| Service charges | 625 | 580 | 882 | 588 | 599 | |||||||||||||
| Total Noninterest Income | 891 | 842 | 777 | 850 | 909 | |||||||||||||
| Noninterest Expense | ||||||||||||||||||
| Salary and employee benefits | 4,193 | 4,268 | 4,197 | 4,152 | 4,148 | |||||||||||||
| Occupancy expense | 666 | 597 | 636 | 589 | 593 | |||||||||||||
| Advertising | 138 | 290 | 156 | 63 | 133 | |||||||||||||
| Data processing expense | 589 | 544 | 580 | 554 | 544 | |||||||||||||
| Professional fees | 455 | 308 | 380 | 425 | 403 | |||||||||||||
| Depr.of furniture, fixtures, and equipment | 204 | 206 | 206 | 196 | 195 | |||||||||||||
| Telephone communications | 41 | 43 | 46 | 44 | 47 | |||||||||||||
| Office supplies | 31 | 33 | 29 | 43 | 49 | |||||||||||||
| FDIC Insurance | 97 | 215 | 184 | 243 | 214 | |||||||||||||
| OREO valuation allowance and expenses | 252 | 203 | 105 | 301 | 377 | |||||||||||||
| Other | 650 | 604 | 773 | 630 | 853 | |||||||||||||
| Total Noninterest Expense | 7,316 | 7,311 | 7,292 | 7,240 | 7,556 | |||||||||||||
| Income before income taxes | 3,378 | 2,977 | 2,816 | 2,576 | 2,339 | |||||||||||||
| Income tax expense | 1,356 | 1,014 | 1,078 | 968 | 811 | |||||||||||||
| Net Income Available to Common Stockholders | $ | 2,022 | $ | 1,963 | $ | 1,738 | $ | 1,608 | $ | 1,528 | ||||||||
| THE COMMUNITY FINANCIAL CORPORATION | ||||||||||||||||||
| SUPPLEMENTAL QUARTERLY FINANCIAL DATA (UNAUDITED) – Continued | ||||||||||||||||||
| At Or For The Three Months Ended | ||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||
| (dollars in thousands, except per share amounts ) | 2016 | 2016 | 2016 | 2016 | 2015 | |||||||||||||
| KEY OPERATING RATIOS | ||||||||||||||||||
| Return on average assets | 0.62 | % | 0.63 | % | 0.57 | % | 0.56 | % | 0.55 | % | ||||||||
| Return on average common equity | 7.68 | 7.48 | 6.79 | 6.37 | 6.06 | |||||||||||||
| Return on average total equity | 7.68 | 7.48 | 6.79 | 6.37 | 6.06 | |||||||||||||
| Average total equity to average total assets | 8.11 | 8.37 | 8.46 | 8.74 | 9.02 | |||||||||||||
| Interest rate spread | 3.33 | 3.34 | 3.40 | 3.37 | 3.47 | |||||||||||||
| Net interest margin | 3.45 | 3.47 | 3.52 | 3.50 | 3.61 | |||||||||||||
| Cost of funds | 0.71 | 0.73 | 0.74 | 0.73 | 0.74 | |||||||||||||
| Cost of deposits | 0.47 | 0.48 | 0.49 | 0.47 | 0.47 | |||||||||||||
| Cost of debt | 2.26 | 2.63 | 2.66 | 2.71 | 2.78 | |||||||||||||
| Efficiency ratio | 64.38 | 66.55 | 68.33 | 70.68 | 73.67 | |||||||||||||
| Non-interest expense to average assets | 2.26 | 2.33 | 2.41 | 2.51 | 2.70 | |||||||||||||
| Net operating expense to average assets | 1.98 | 2.06 | 2.15 | 2.21 | 2.38 | |||||||||||||
| Avg. int-earning assets to avg. int-bearing liabilities | 117.37 | 117.49 | 117.61 | 117.79 | 118.43 | |||||||||||||
| Net charge-offs to average loans | 0.18 | 0.06 | 0.02 | 0.16 | 0.09 | |||||||||||||
| COMMON SHARE DATA | ||||||||||||||||||
| Basic net income per common share | $ | 0.44 | $ | 0.43 | $ | 0.38 | $ | 0.35 | $ | 0.33 | ||||||||
| Diluted net income per common share | 0.44 | 0.42 | 0.38 | 0.35 | 0.33 | |||||||||||||
| Cash dividends paid per common share | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | |||||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||
| Basic | 4,574,707 | 4,590,644 | 4,590,444 | 4,594,683 | 4,605,033 | |||||||||||||
| Diluted | 4,606,676 | 4,622,579 | 4,617,794 | 4,624,603 | 4,642,081 | |||||||||||||
| ASSET QUALITY | ||||||||||||||||||
| Total assets | $ | 1,334,257 | $ | 1,281,874 | $ | 1,233,401 | $ | 1,176,913 | $ | 1,143,332 | ||||||||
| Gross loans | 1,088,982 | 1,051,419 | 1,005,068 | 945,144 | 918,894 | |||||||||||||
| Classified Assets | 39,246 | 40,234 | 41,370 | 44,512 | 43,346 | |||||||||||||
| Allowance for loan losses | 9,860 | 9,663 | 9,106 | 8,591 | 8,540 | |||||||||||||
| Past due loans (PDLs) (31 to 89 days) | 1,034 | 723 | 821 | 983 | 948 | |||||||||||||
| Nonperforming loans (NPLs) (>=90 days) | 7,705 | 7,778 | 9,540 | 9,703 | 10,740 | |||||||||||||
| Non-accrual loans | 8,374 | 8,455 | 10,224 | 10,392 | 11,433 | |||||||||||||
| Accruing troubled debt restructures (TDRs) | 10,448 | 10,595 | 10,878 | 12,327 | 13,133 | |||||||||||||
| Other real estate owned (OREO) | 7,763 | 8,620 | 8,460 | 11,038 | 9,449 | |||||||||||||
| Non-accrual loans, OREO and TDRs | $ | 26,585 | $ | 27,670 | $ | 29,562 | $ | 33,757 | $ | 34,015 | ||||||||
| ASSET QUALITY RATIOS | ||||||||||||||||||
| Classified assets to total assets | 2.94 | % | 3.14 | % | 3.35 | % | 3.78 | % | 3.79 | % | ||||||||
| Classified assets to risk-based capital | 26.13 | 27.08 | 28.25 | 30.79 | 30.19 | |||||||||||||
| Allowance for loan losses to total loans | 0.91 | 0.92 | 0.91 | 0.91 | 0.93 | |||||||||||||
| Allowance for loan losses to nonperforming loans | 127.97 | 124.24 | 95.45 | 88.54 | 79.52 | |||||||||||||
| Past due loans (PDLs) to total loans | 0.09 | 0.07 | 0.08 | 0.10 | 0.10 | |||||||||||||
| Nonperforming loans (NPLs) to total loans | 0.71 | 0.74 | 0.95 | 1.03 | 1.17 | |||||||||||||
| Loan delinquency (PDLs + NPLs) to total loans | 0.80 | 0.81 | 1.03 | 1.13 | 1.27 | |||||||||||||
| Non-accrual loans to total loans | 0.77 | 0.80 | 1.02 | 1.10 | 1.24 | |||||||||||||
| Non-accrual loans and TDRs to total loans | 1.73 | 1.81 | 2.10 | 2.40 | 2.67 | |||||||||||||
| Non-accrual loans and OREO to total assets | 1.21 | 1.33 | 1.51 | 1.82 | 1.83 | |||||||||||||
| Non-accrual loans, OREO and TDRs to total assets | 1.99 | 2.16 | 2.40 | 2.87 | 2.98 | |||||||||||||
| COMMON SHARE DATA | ||||||||||||||||||
| Book value per common share | $ | 22.54 | $ | 22.33 | $ | 22.01 | $ | 21.70 | $ | 21.48 | ||||||||
| Common shares outstanding at end of period | 4,633,868 | 4,656,989 | 4,651,486 | 4,652,292 | 4,645,429 | |||||||||||||
| OTHER DATA | ||||||||||||||||||
| Number of: | ||||||||||||||||||
| Full-time equivalent employees | 162 | 166 | 167 | 168 | 171 | |||||||||||||
| Branches | 12 | 12 | 12 | 12 | 12 | |||||||||||||
| Loan Production Offices | 5 | 5 | 5 | 5 | 5 | |||||||||||||
| REGULATORY CAPITAL RATIOS | ||||||||||||||||||
| Tier 1 capital to average assets | 9.02 | % | 9.22 | % | 9.43 | % | 9.77 | % | 10.01 | % | ||||||||
| Tier 1 common capital to risk-weighted assets | 9.54 | 9.75 | 10.01 | 9.96 | 10.16 | |||||||||||||
| Tier 1 capital to risk-weighted assets | 10.62 | 10.87 | 11.18 | 11.14 | 11.38 | |||||||||||||
| Total risk-based capital to risk-weighted assets | 13.60 | 13.94 | 14.32 | 14.26 | 14.58 | |||||||||||||
CONTACT: CONTACTS: William J. Pasenelli, Chief Executive Officer Todd L. Capitani, Chief Financial Officer 888.745.2265