Loading, Please Wait...

CST: 22/08/2019 03:19:33   

Eagle Bancorp Montana Earns $3.2 Million, or $0.51 Per Diluted Share, in Second Quarter 2019; Assets Surpass $1.0 Billion; Raises Regular Quarterly Cash Dividend by 2.7% to $0.095 per Share and Renews Stock Repurchase Plan

29 Days ago

HELENA, Mont., July 23, 2019 (GLOBE NEWSWIRE) -- Eagle Bancorp Montana, Inc. (NASDAQ: EBMT), (the “Company,” “Eagle”), the holding company of Opportunity Bank of Montana, today reported net income of $3.2 million, or $0.51 per diluted share, in the second quarter of 2019, compared to $1.2 million, or $0.18 per diluted share, in the first quarter of 2019, and $1.3 million, or $0.24 per diluted share, in the second quarter of 2018.  There were $5,000 in acquisition-related expenses in the second quarter of 2019, compared to $1.2 million in the preceding quarter and $131,000 in the second quarter a year ago. In the first six months of 2019, net income increased 132.4% to $4.4 million, or $0.69 per diluted share, compared to $1.9 million, or $0.35 per diluted share, in the first six months of 2018.

Additionally, Eagle’s board of directors increased its regular quarterly cash dividend by 2.7% to $0.095 per share on July 18, 2019.  The dividend will be payable September 6, 2019 to shareholders of record August 16, 2019.  The current annualized yield is 2.29% based on recent market prices.

“Eagle’s record second quarter operating results were highlighted by double-digit loan and deposit growth year-over-year and solid net interest income,” stated Peter J. Johnson, President and CEO.  “All of our operating metrics improved during the quarter as we surpassed the $1 billion asset milestone.  At the same time, the successful integration of our two recent acquisitions is providing us with additional opportunities for improvement.  We will continue to look for growth opportunities in and around our surrounding markets that benefit both our customers and shareholders.”

On January 1, 2019, Eagle completed its acquisition of Big Muddy Bancorp, Inc. and its wholly owned subsidiary, The State Bank of Townsend, located in Townsend, Montana, in a transaction valued at $16.4 million. 

On January 31, 2018, Eagle completed its acquisition of Ruby Valley Bank, which added approximately $94 million in assets, $82 million in deposits and $55 million in gross loans.

Second Quarter 2019 Highlights (at or for the three-month period ended June 30, 2019, except where noted)

  • Net income was $3.2 million, or $0.51 per diluted share, compared to $1.3 million, or $0.24 per diluted share, in the second quarter of 2018.
  • Annualized return on average assets was 1.30%.
  • Annualized return on average equity was 11.37%.
  • Net interest margin (“NIM”) contracted to 4.31% in the second quarter of 2019, compared to 4.33% in the preceding quarter, and improved 13-basis points compared to 4.18% in the second quarter a year ago.  
  • Revenues (net interest income before the provision for loan losses, plus non-interest income) increased 44.4% to $15.2 million, compared to $10.5 million in the second quarter a year ago. 
  • Purchase discount on loans from the Big Muddy Bancorp portfolio was $2.8 million at January 1, 2019, (the “acquisition date”) of which $1.9 million remains as of June 30, 2019.
  • Purchase discount on loans from the Ruby Valley Bank portfolio was $1.8 million at January 31, 2018, (the “acquisition date”) of which $1.1 million remains as of June 30, 2019.
  • The accretion of the loan purchase discount into loan interest income from both the Big Muddy Bancorp and the Ruby Valley Bank transactions was $539,000 in the second quarter, compared to $520,000 in the preceding quarter.
  • Total loans increased 29.3% to $752.4 million at June 30, 2019, compared to $581.7 million a year ago.
  • Total deposits increased 22.1% to $748.4 million at June 30, 2019, compared to $613.2 million a year ago.
  • Capital ratios remain well capitalized with a tangible common shareholders’ equity ratio of 9.79% at June 30, 2019.
  • Increased quarterly cash dividend by 2.7% to $0.095 per share.

Balance Sheet Results
“Loan production remains robust, with organic loan growth up $40.1 million, or 6.25% from the previous quarter end. This organic growth, coupled with the recent acquisition of Big Muddy Bancorp, resulted in total loans increasing almost 30% year over year,” said Johnson.  Total loans increased 29.3% to $752.4 million at June 30, 2019, compared to $581.7 million a year earlier and increased 3.4% compared to $728.0 million three months earlier.

Eagle originated $120.5 million in new residential mortgages during the quarter, excluding construction loans, and sold $101.4 million in residential mortgages, with an average gross margin on sale of mortgage loans of approximately 3.31%.  This production compares to residential mortgage originations of $77.4 million in the preceding quarter with sales of $72.3 million.

Commercial real estate loans increased 46.4% to $316.6 million at June 30, 2019, compared to $216.3 million a year earlier.  Residential mortgage loans increased 2.3% to $114.9 million, compared to $112.3 million a year earlier.  Agricultural and farmland loans increased 98.8% to $93.1 million at June 30, 2019, compared to $46.8 million a year earlier.  Commercial loans increased 5.8% to $74.0 million, home equity loans increased 4.5% to $55.6 million, commercial construction and development loans increased 36.8% to $50.0 million, residential construction loans decreased modestly to $30.3 million, and consumer loans increased 15.3% to $19.2 million, compared to a year ago. 

Total deposits were $748.4 million at June 30, 2019, a 22.1% increase compared to $613.2 million at June 30, 2018, and a 1.0% increase compared to $741.0 million at March 31,2019.  Noninterest checking accounts represent 24.5%, interest bearing checking accounts represent 14.8%, savings accounts represent 16.5%, money market accounts comprise 16.4% and time certificates of deposit make up 27.8% of the total deposit portfolio at June 30, 2019.

Total assets increased 21.9% to $1.0 billion at June 30, 2019, compared to $826.8 million a year ago, in large part due to the Big Muddy Bancorp acquisition.  At March 31, 2019, total assets were $979.6 million.  Shareholders’ equity increased 26.0% to $115.7 million at June 30, 2019, compared to $91.8 million a year earlier and increased 3.0% compared to $112.3 million three months earlier.  Tangible book value improved to $15.12 per share at June 30, 2019, compared to $14.50 per share at March 31, 2019, and $14.28 per share a year earlier. 

Operating Results
Eagle’s NIM contracted two basis points to 4.31% in the second quarter of 2019, compared to 4.33% in the preceding quarter, and a 13-basis point improvement compared to 4.18% in the second quarter a year ago.  “Our NIM continues to benefit substantially due to the increase in interest accretion on purchased loans as a result of our two recent acquisitions,” said Johnson.  “The interest accretion on purchased loans totaled $539,000 and resulted in a 24-basis point increase in the NIM during the second quarter, compared to $520,000 and a 24-basis point increase in the NIM during the preceding quarter.”  Year-to-date, Eagle’s NIM improved 41 basis-points to 4.32%, from 3.91% in the first six months of 2018.

The investment securities portfolio decreased to $124.1 million at June 30, 2019, compared to $154.3 million a year ago, which had a positive impact on average yields on earning assets, increasing to 5.15% from 4.52% a year ago due to deploying funds into higher yielding loans.

Eagle’s second quarter revenues increased 16.3% to $15.2 million, compared to $13.1 million in the preceding quarter and increased 44.4% when compared to $10.5 million in the second quarter a year ago.  Year-to-date, revenues increased 42.7% to $28.3 million, compared to $19.8 million in the first six months of 2018. 

Net interest income before the provision for loan loss increased 3.4% to $9.7 million in the second quarter compared to $9.4 million in the preceding quarter and increased 24.1% compared to $7.8 million in the second quarter a year ago. In the first six months of 2019, net interest income increased 30.1% to $19.1 million, compared to $14.7 million in the first six months of 2018.

With solid gains from loan sales, noninterest income increased 49.0% to $5.5 million in the second quarter of 2019, compared to $3.7 million in the preceding quarter, and increased 102.7% compared to $2.7 million in the second quarter a year ago.  The net gain on sale of mortgage loans totaled $3.4 million in the second quarter of 2019 compared to $2.6 million in the preceding quarter and $1.7 million in the second quarter a year ago.  Year-to-date, noninterest income grew 78.5% to $9.2 million, compared to $5.2 million in the first six months of 2018.

Eagle’s second quarter noninterest expenses were $10.5 million compared to $11.0 million in the preceding quarter and $8.9 million in the second quarter a year ago.  Acquisition costs totaled $5,000 for the current quarter, compared to $1.2 million for the preceding quarter and $131,000 in the second quarter one year ago.  In the first six months of the year, noninterest expenses totaled $21.5 million, compared to $17.0 million in the first six months of 2018.

For the second quarter of 2019, income tax expense totaled $780,000, for an effective tax rate of 19.4%, compared to $293,000 in the second quarter of 2018.

Credit Quality
The allowance for loan losses represented 206.4% of nonaccrual loans at June 30, 2019, compared to 133.6% three months earlier and 370.7% a year earlier.  The second quarter provision for loan losses was $697,000, compared to $604,000 in the preceding quarter and $24,000 in the second quarter a year ago. 

Eagle’s total other real estate owned (“OREO”) and other repossessed assets improved to $91,000 at June 30, 2019, compared to $354,000 at March 31, 2019 and $457,000 at June 30, 2018.  The decrease was primarily due to the sale of two OREO properties.  Nonperforming assets (“NPAs”), consisting of nonaccrual loans, OREO and other repossessed assets, loans delinquent 90 days or more, and restructured loans, were $3.8 million at June 30, 2019, or 0.38% of total assets, compared to $5.7 million, or 0.58% of total assets three months earlier and $2.1 million, or 0.26% of total assets a year earlier.  The increase year-over-year was primarily from acquired assets.

Nonperforming loans (“NPLs”) reduced to $3.8 million at June 30, 2019, from $5.3 million at March 31, 2019, and increased when compared to $1.7 million a year earlier.  The increase year-over-year in nonperforming loans were primarily a result of loans acquired.

Net loan charge-offs totaled $46,000 in the second quarter of 2019, compared to $104,000 in the first quarter of 2019 and $4,000 in the second quarter a year ago.  The allowance for loan losses was $7.8 million, or 1.03% of total loans at June 30, 2019, compared to $7.1 million, or 0.98% of total loans at March 31, 2019 and $6.2 million, or 1.06% of total loans a year ago.

Capital Management
Eagle Bancorp Montana continues to be well capitalized with the ratio of tangible common shareholders’ equity to tangible assets of 9.79% at June 30, 2019.  (Shareholders’ equity, less goodwill and core deposit intangible to tangible assets).

Stock Repurchase
Eagle announced that its Board of Directors has authorized the repurchase of up to 100,000 shares of its common stock, representing approximately 1.56% of outstanding shares. Under the plan, shares may be purchased by the company on the open market or in privately negotiated transactions. The extent to which the company repurchases its shares and the timing of such repurchase will depend upon market conditions and other corporate considerations.

About the Company
Eagle Bancorp Montana, Inc. is a bank holding company headquartered in Helena, Montana and is the holding company of Opportunity Bank of Montana, a community bank established in 1922 that serves consumers and small businesses in Montana through 21 banking offices. Additional information is available on the bank’s website at www.opportunitybank.com.  The shares of Eagle Bancorp Montana, Inc. are traded on the NASDAQ Global Market under the symbol “EBMT.”

Forward Looking Statements
This release may contain certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and may be identified by the use of such words as "believe," “will”’ "expect," "anticipate," "should," "planned," "estimated," and "potential." These forward-looking statements include, but are not limited to statements of our goals, intentions and expectations; statements regarding our business plans, prospects, mergers with Ruby Valley Bank and The State Bank of Townsend, growth and operating strategies; statements regarding the asset quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits. These forward-looking statements are based on current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. These factors include, but are not limited to, changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements; general economic conditions and political events, either nationally or in our market areas, that are worse than expected; competition among depository and other financial institutions; loan demand or residential and commercial real estate values in Montana; our ability to continue to  increase and manage our commercial real estate, commercial business and agricultural loans; the costs and effects of legal, compliance and regulatory actions, changes and developments, including the initiation and resolution of legal proceedings (including any securities, bank operations, consumer or employee litigation and any litigation which we inherited from our January 2019 merger with The State Bank of Townsend); inflation and changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments; adverse changes in the securities markets; other economic, governmental, competitive, regulatory and technological factors that may affect our operations; cyber incidents, or theft or loss of Company or customer data or money; the effect of our acquisitions of Ruby Valley Bank and The State Bank of Townsend, including the failure to achieve expected revenue growth and/or expense savings, the failure to effectively integrate their operations and the diversion of management time on issues related to the integration. Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. All information set forth in this press release is current as of the date of this release and the company undertakes no duty or obligation to update this information.

Balance Sheet      
(Dollars in thousands, except per share data) (Unaudited) (Unaudited) (Unaudited)
  June 30, March 31, June 30,
  2019 2019 2018
       
Assets:      
Cash and due from banks $ 10,581   $ 9,054   $ 7,583  
Interest bearing deposits in banks   2,855     2,225     1,397  
Total cash and cash equivalents   13,436     11,279     8,980  
Securities available-for-sale, at fair value   124,065     140,161     154,265  
FHLB stock   5,384     4,807     4,559  
FRB stock   2,526     2,040     2,019  
Investment in Eagle Bancorp Statutory Trust I   155     155     155  
Loans held-for-sale, at fair value   23,760     8,075     11,700  
Loans:      
Real estate loans:      
Residential 1-4 family   114,898     116,621     112,314  
Residential 1-4 family construction   30,250     27,692     31,009  
Commercial real estate   316,612     304,861     216,264  
Commercial construction and development   50,027     44,998     36,581  
Farmland   46,051     45,129     28,680  
Other loans:      
Home equity   55,582     54,637     53,178  
Consumer   19,181     19,043     16,635  
Commercial   74,008     73,937     69,951  
Agricultural   47,040     42,185     18,145  
Unearned loan fees   (1,215 )   (1,083 )   (1,029 )
Total loans   752,434     728,020     581,728  
Allowance for loan losses   (7,750 )   (7,100 )   (6,150 )
Net loans   744,684     720,920     575,578  
Accrued interest and dividends receivable   4,903     5,005     3,668  
Mortgage servicing rights, net   7,666     7,318     6,716  
Premises and equipment, net   36,992     35,364     27,969  
Cash surrender value of life insurance, net   23,724     23,564     14,670  
Real estate and other repossessed assets acquired in settlement of loans, net   91     354     457  
Goodwill   15,710     15,710     12,124  
Core deposit intangible, net   3,136     3,311     1,702  
Deferred tax asset, net   75     1,304     2,012  
Other assets   1,418     236     253  
Total assets $ 1,007,725   $ 979,603   $ 826,827  
       
Liabilities:      
Deposit accounts:      
Noninterest bearing   183,116     180,070     133,736  
Interest bearing   565,272     560,975     479,439  
Total deposits   748,388     741,045     613,175  
Accrued expense and other liabilities   11,987     9,061     5,535  
FHLB advances and other borrowings   106,748     92,313     91,469  
Other long-term debt, net   24,908     24,892     24,843  
Total liabilities   892,031     867,311     735,022  
       
Shareholders' Equity:      
Preferred stock (par value $0.01 per share; 1,000,000 shares authorized; no shares issued or outstanding)   -     -     -  
Common stock (par value  $0.01; 20,000,000 shares authorized;      
6,714,983, 6,714,983 and 5,718,942 shares issued; 6,403,693,      
6,431,693 and 5,460,452 shares outstanding at June 30, 2019,      
March 31, 2019 and June 30, 2018, respectively)   67     67     57  
Additional paid-in capital   68,535     68,506     51,890  
Unallocated common stock held by Employee Stock Ownership Plan   (393 )   (435 )   (559 )
Treasury stock, at cost (311,290, 283,290 and 258,490 shares at June      
30, 2019, March 31, 2019 and June 30, 2018, respectively)   (3,850 )   (3,372 )   (2,826 )
Retained earnings   50,167     47,512     44,862  
Accumulated other comprehensive income (loss), net of tax   1,168     14     (1,619 )
Total shareholders' equity   115,694     112,292     91,805  
Total liabilities and shareholders' equity $ 1,007,725   $ 979,603   $ 826,827  
       

 

             
Income Statement (Unaudited)     (Unaudited)
(Dollars in thousands, except per share data) Three Months Ended     Six Months Ended
  June 30, March 31, June 30,     June 30,
   2019   2019  2018      2019   2018 
Interest and dividend income:              
Interest and fees on loans $ 10,599   $ 10,048   $ 7,862     $ 20,647   $ 14,734  
Securities available-for-sale   928     958     1,021       1,886     2,010  
FRB and FHLB dividends   95     95     74       190     153  
Interest on deposits in banks   13     18     18       31     35  
Other interest income   3     2     1       5     1  
Total interest and dividend income   11,638     11,121     8,976       22,759     16,933  
Interest expense:              
Interest expense on deposits   924     787     494       1,711     920  
FHLB advances and other borrowings   656     594     315       1,250     652  
Other long-term debt   364     365     357       729     704  
Total interest expense   1,944     1,746     1,166       3,690     2,276  
Net interest income   9,694     9,375     7,810       19,069     14,657  
Loan loss provision   697     604     24       1,301     526  
Net interest income after loan loss provision   8,997     8,771     7,786       17,768     14,131  
               
Noninterest income:              
Service charges on deposit accounts   292     261     214       553     440  
Net gain on sale of loans   3,360     2,599     1,720       5,959     3,159  
Mortgage banking   722     365     194       1,087     513  
Wealth management income   135     112     147       247     279  
Interchange and ATM fees   338     275     271       613     496  
Appreciation in cash surrender value of life insurance   160     157     146       317     270  
Net gain (loss) on sale of available-for-sale securities   104     (55 )   15       49     (90 )
Other noninterest income   392     (20 )   8       372     86  
Total noninterest income   5,503     3,694     2,715       9,197     5,153  
               
Noninterest expense:              
Salaries and employee benefits   6,510     5,992     5,461       12,502     10,370  
Occupancy and equipment expense   1,043     1,034     835       2,077     1,663  
Data processing   854     928     673       1,782     1,310  
Advertising   212     268     298       480     576  
Amortization of core deposit intangible and tax credits   253     254     235       507     337  
Loan costs   177     135     179       312     315  
Federal insurance premiums   55     60     69       115     138  
Postage   79     68     84       147     134  
Legal, accounting and examination fees   236     274     184       510     326  
Consulting fees   44     31     25       75     42  
Acquisition costs   5     1,171     131       1,176     365  
Other noninterest expense   1,005     806     701       1,811     1,382  
Total noninterest expense   10,473     11,021     8,875       21,494     16,958  
               
Income before provision for income taxes   4,027     1,444     1,626       5,471     2,326  
Income tax provision   780     261     293       1,041     420  
Net income $ 3,247   $ 1,183   $ 1,333     $ 4,430   $ 1,906  
               
Basic earnings per share $ 0.51   $ 0.18   $ 0.24     $ 0.69   $ 0.35  
Diluted earnings per share $ 0.51   $ 0.18   $ 0.24     $ 0.69   $ 0.35  
               
Basic weighted average shares outstanding   6,408,627     6,450,326     5,460,452       6,429,362     5,386,401  
               
Diluted weighted average shares outstanding   6,425,015     6,426,740     5,524,912       6,446,368     5,450,861  
               

 

       
ADDITIONAL FINANCIAL INFORMATION (Unaudited)
(Dollars in thousands, except per share data) Three Months Ended
  June 30, March 31, June 30,
  2019 2019 2018
Performance Ratios (For the quarter):      
Return on average assets   1.30 %   0.49 %   0.65 %
Return on average equity   11.37 %   4.38 %   5.83 %
Net interest margin   4.31 %   4.33 %   4.18 %
Core efficiency ratio*   67.22 %   73.43 %   80.85 %
       
Performance Ratios (Year-to-date):      
Return on average assets   0.90 %   0.49 %   0.46 %
Return on average equity   7.97 %   4.38 %   4.94 %
Net interest margin   4.32 %   4.33 %   3.91 %
Core efficiency ratio*   70.09 %   73.43 %   82.06 %
       
Asset Quality Ratios and Data: As of or for the Three Months Ended
  June 30, March 31, June 30,
  2019 2019 2018
       
Nonaccrual loans $ 3,608   $ 4,506   $ 1,500  
Loans 90 days past due and still accruing   126     788     159  
Restructured loans, net   21     22     -  
Total nonperforming loans   3,755     5,316     1,659  
Other real estate owned and other repossessed assets   91     354     457  
Total nonperforming assets $ 3,846   $ 5,670   $ 2,116  
       
Nonperforming loans / portfolio loans   0.50 %   0.73 %   0.29 %
Nonperforming assets / assets   0.38 %   0.58 %   0.26 %
Allowance for loan losses / portfolio loans   1.03 %   0.98 %   1.06 %
Allowance / nonperforming loans   206.39 %   133.56 %   370.71 %
Gross loan charge-offs for the quarter $ 81   $ 124   $ 24  
Gross loan recoveries for the quarter $ 35   $ 20   $ 20  
Net loan charge-offs for the quarter $ 46   $ 104   $ 4  
       
Capital Data (At quarter end):      
Tangible book value per share $ 15.12   $ 14.50   $ 14.28  
Shares outstanding   6,403,693     6,431,693     5,460,452  
Tangible common equity to tangible assets   9.79 %   9.71 %   9.59 %
       
Other Information:      
Average total assets for the quarter $ 1,000,701   $ 966,828   $ 823,916  
Average total assets year to date $ 983,764   $ 966,828   $ 835,643  
Average earning assets for the quarter $ 902,263   $ 878,672   $ 749,725  
Average earning assets year to date $ 890,468   $ 878,672   $ 755,885  
Average loans for the quarter ** $ 754,197   $ 726,657   $ 585,366  
Average loans year to date ** $ 740,427   $ 726,657   $ 579,191  
Average equity for the quarter $ 114,208   $ 108,122   $ 91,462  
Average equity year to date $ 111,165   $ 108,122   $ 77,170  
Average deposits for the quarter $ 741,943   $ 724,820   $ 623,285  
Average deposits year to date $ 733,381   $ 724,820   $ 614,300  
       
 
* The core efficiency ratio is a non-GAAP ratio that is calculated by dividing non-interest expense, exclusive of costs and intangible asset amortization, by the sum of net interest income and non-interest income, exclusive of one-time accounting adjustment.
** Includes loans held for sale      
       

Use of Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles utilized in the United States, or GAAP, the Financial Ratios and Other Data contains our core efficiency ratio and tangible book value per share, which are non-GAAP financial measures.  The numerator for the core efficiency ratio is calculated by subtracting acquisition costs and intangible asset amortization from noninterest expense. Tangible assets and tangible common shareholders’ equity are calculated by excluding intangible assets from assets and shareholders’ equity, respectively. For these financial measures, our intangible assets consist of goodwill and core deposit intangible. Tangible book value per share is calculated by dividing tangible common shareholders’ equity by the number of common shares outstanding.  We believe that this measure is consistent with the capital treatment by our bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios, and present this measure to facilitate the comparison of the quality and composition of our capital over time and in comparison to our competitors.

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited.  Further, the non-GAAP financial measure of tangible book value per share should not be considered in isolation or as a substitute for book value per share or total shareholders’ equity determined in accordance with GAAP, and may not be comparable to a similarly titled measure reported by other companies.  Reconciliation of the GAAP and non-GAAP financial measures are presented below.

           
Core Efficiency Ratio (Unaudited)    (Unaudited)
(Dollars in thou sands) Three Months Ended   Six Months Ended
  June 30, March 31, June 30,   June 30,
  2019 2019 2018   2019 2018
Calculation of Core Efficiency Ratio:            
Noninterest expense $ 10,473   $ 11,021   $ 8,875     $ 21,494   $ 16,958  
Acquisition costs   (5 )   (1,171 )   (131 )     (1,176 )   (365 )
Intangible asset amortization   (253 )   (254 )   (235 )     (507 )   (337 )
Core efficiency ratio numerator   10,215     9,596     8,509       19,811     16,256  
             
Net interest income   9,694     9,375     7,810       19,069     14,657  
Noninterest income   5,503     3,694     2,715       9,197     5,153  
Core efficiency ratio denominator   15,197     13,069     10,525       28,266     19,810  
             
Core efficiency ratio   67.22 %   73.43 %   80.85 %     70.09 %   82.06 %
             

 

   
Tangible Book Value and Tangible Assets (Unaudited)
(Dollars in thousands, except per share data) June 30, March 31, June 30,
  2019 2019 2018
Tangible Book Value:      
Shareholders' equity $   115,694   $   112,292   $   91,805  
Goodwill and core deposit intangible, net     (18,846 )     (19,021 )     (13,826 )
Tangible common shareholders' equity $   96,848   $   93,271   $   77,979  
       
Common shares outstanding at end of period     6,403,693       6,431,693       5,460,452  
       
Common shareholders' equity (book value) per share (GAAP) $   18.07   $   17.46   $   16.81  
       
Tangible common shareholders' equity (tangible book value) per share (non-GAAP) $   15.12   $   14.50   $   14.28  
       
Tangible Assets:      
Total assets $   1,007,725   $   979,603   $   826,827  
Goodwill and core deposit intangible, net     (18,846 )     (19,021 )     (13,826 )
Tangible assets (non-GAAP) $   988,879   $   960,582   $   813,001  
       
Tangible common shareholders' equity to tangible assets (non-GAAP)   9.79 %   9.71 %   9.59 %
       

 

       
Earnings Per Diluted Share, Excluding Acquisition Costs (Unaudited)   (Unaudited)
(Dollars in thousands, except per share data) Three Months Ended   Six Months Ended
  June 30, March 31, June 30,   June 30,
  2019
2019
2018
  2019
2018
             
Net interest income after loan loss provision $ 8,997   $ 8,771   $ 7,786     $ 17,768   $ 14,131  
Noninterest income   5,503     3,694     2,715       9,197     5,153  
             
Noninterest expense   10,473     11,021     8,875       21,494     16,958  
Acquisition costs   (5 )   (1,171 )   (131 )     (1,176 )   (365 )
Noninterest expense, excluding acquisition costs   10,468     9,850     8,744       20,318     16,593  
             
Income before income taxes   4,032     2,615     1,757       6,647     2,691  
Income tax expense, excluding acquisition costs related taxes   781     473     317       1,265     486  
Net Income, excluding acquisition costs $ 3,251   $ 2,142   $ 1,440     $ 5,382   $ 2,205  
             
Diluted earnings per share (GAAP) $ 0.51   $ 0.18   $ 0.24     $ 0.69   $ 0.35  
Diluted earnings per share, excluding acquisition costs (non-GAAP) $ 0.51   $ 0.33   $ 0.26     $ 0.83   $ 0.40  
             

 

Return on Average Assets, Excluding Acquisition Costs (Unaudited)
(Dollars in thousands) June 30, March 31, June 30,
  2019 2019 2018
For the quarter:      
Net income, excluding acquisition costs $ 3,251   $ 2,142   $ 1,440  
Average total assets quarter to date $ 1,000,701   $ 966,828   $ 823,916  
Return on average assets, excluding acquisition costs   1.30 %   0.89 %   0.70 %
       
Year-to-date:      
Net income, excluding acquisition costs $ 5,382   $ 2,142   $ 2,205  
Average total assets year to date $ 983,764   $ 966,828   $ 835,643  
Return on average assets, excluding acquisition costs   1.09 %   0.89 %   0.53 %
       

Contacts:

Peter J. Johnson, President and CEO
(406) 457-4006
Laura F. Clark, EVP and CFO
(406) 457-4007

Is your business listed correctly on America’s largest city directory network of 1,000 portals?