OP Bancorp Reports Third Quarter Result of 2020

2020 Third Quarter Highlights:

  • Net income totaled $3.6 million, or $0.23 per diluted common share, compared to $2.4 million or $0.16 per diluted common share for the second quarter of 2020 and $4.0 million or $0.24 per diluted common share for the third quarter of 2019
  • Net interest margin was 3.66%, compared to 3.55% for the second quarter of 2020 and 4.13% for the third quarter of 2019
  • Return on average assets was 1.11% and return on average equity was 10.22%, compared to 0.77% and 6.97%, respectively, for the second quarter of 2020 and 1.41% and 11.74%, respectively, for the third quarter of 2019
  • Total assets increased 16.3% to $1.34 billion at September 30, 2020, from $1.15 billion at September 30, 2019
  • Net loans receivable increased 10.9% to $1.06 billion at September 30, 2020, from $954.7 million at September 30, 2019
  • Total deposits increased 17.5% to $1.17 billion at September 30, 2020, from $996.0 million at September 30, 2019
  • Noninterest-bearing deposits accounted for 41.8% of total deposits at September 30, 2020, compared to 29.8% at September 30, 2019
  • Nonperforming assets to total assets was 0.02% at September 30, 2020, compared to 0.29% at September 30, 2019
  • Total risk-based capital ratio and leverage ratio were 14.93% and 10.85%, respectively, at September 30, 2020, compared to 15.36% and 12.11%, respectively, at September 30, 2019
  • The provision for loan losses was $1.4 million, compared to $2.0 million for the second quarter of 2020 and $290,000 for the third quarter of 2019, in response to changes in qualitative economic and business conditions amid COVID-19 pandemic
  • Pre-tax pre-provision income was $6.5 million compared to $5.5 million for the third quarter of 2019
  • Approximately 5% of our loan portfolio remains in deferred status as of September 30, 2020, down from 18% of our portfolio as June 30, 2020
  • Announced a program to repurchase up to 500,000 shares of common stock on September 9, 2020 and repurchased 82,000 shares at an average price of $6.10 as of October 19, 2020

 

LOS ANGELES--()--OP Bancorp (the “Company”) (NASDAQ: OPBK), the holding company of Open Bank (the “Bank”), today reported unaudited financial results for the third quarter of 2020. Net income for the third quarter of 2020 was $3.6 million, or $0.23 per diluted common share, compared to net income of $2.4 million, or $0.16 per diluted common share, for the second quarter of 2020, and net income of $4.0 million, or $0.24 per diluted common share, for the third quarter of 2019.

“We are pleased to report a solid quarter with strong loan and deposit growth and an improved net interest margin during this challenging environment. We provided an additional loan loss provision of $1.4 million for the quarter resulting from further adjustments to our qualitative factors to reflect potential negative impact caused by COVID-19 pandemic. We will continue to be proactive in assisting our customers in navigating their businesses during this difficult and unprecedented period. Furthermore, we continue to put our priority in managing various risks to maintain safe and sound banking operations,” commented Min Kim, President and Chief Executive Officer of OP Bancorp and Open Bank.

Financial Highlights (unaudited)

(Dollars in thousands, except per share data)

 

As of or for the Three Months Ended

 

 

 

September 30,

 

 

 

June 30,

 

 

 

September 30,

 

 

 

2020

 

 

 

2020

 

 

 

2019

 

Income Statement Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

13,016

 

 

 

$

12,920

 

 

 

$

15,112

 

Interest expense

 

 

1,597

 

 

 

 

2,272

 

 

 

 

3,893

 

Net interest income

 

 

11,419

 

 

 

 

10,648

 

 

 

 

11,219

 

Provision for loan losses

 

 

1,399

 

 

 

 

1,988

 

 

 

 

290

 

Noninterest income

 

 

3,021

 

 

 

 

2,062

 

 

 

 

2,732

 

Noninterest expense

 

 

7,987

 

 

 

 

7,334

 

 

 

 

8,424

 

Income before taxes

 

 

5,054

 

 

 

 

3,388

 

 

 

 

5,237

 

Provision for income taxes

 

 

1,459

 

 

 

 

972

 

 

 

 

1,237

 

Net Income

 

$

3,595

 

 

 

$

2,416

 

 

 

$

4,000

 

Diluted earnings per share

 

$

0.23

 

 

 

$

0.16

 

 

 

$

0.24

 

Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

$

41,430

 

 

 

$

8,795

 

 

 

$

368

 

Gross loans, net of unearned income

 

 

1,072,790

 

 

 

 

1,043,506

 

 

 

 

964,370

 

Allowance for loan losses (ALL)

 

 

14,164

 

 

 

 

12,764

 

 

 

 

9,640

 

Total assets

 

 

1,339,821

 

 

 

 

1,288,011

 

 

 

 

1,151,934

 

Deposits

 

 

1,170,164

 

 

 

 

1,120,720

 

 

 

 

995,993

 

Shareholders’ equity

 

 

141,549

 

 

 

 

139,136

 

 

 

 

137,593

 

Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (annualized)

 

 

1.11

%

 

 

 

0.77

%

 

 

 

1.41

%

Return on average equity (annualized)

 

 

10.22

%

 

 

 

6.97

%

 

 

 

11.74

%

Net interest margin (annualized)

 

 

3.66

%

 

 

 

3.55

%

 

 

 

4.13

%

Efficiency ratio (1)

 

 

55.31

%

 

 

 

57.70

%

 

 

 

60.39

%

Credit Quality:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans

 

$

330

 

 

 

$

1,019

 

 

 

$

1,570

 

Nonperforming assets

 

 

330

 

 

 

 

1,019

 

 

 

 

3,387

 

Net charge-offs(recoveries) to average gross loans (annualized)

 

 

0.00

%

 

 

 

-0.01

%

 

 

 

0.08

%

Nonperforming assets to gross loans plus OREO

 

 

0.03

%

 

 

 

0.10

%

 

 

 

0.35

%

ALL to nonperforming loans

 

 

4,295

%

 

 

 

1,252

%

 

 

 

614

%

ALL to gross loans, net of unearned income

 

 

1.32

%

 

 

 

1.22

%

 

 

 

1.00

%

Capital Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total risk-based capital ratio

 

 

14.93

%

 

 

 

15.16

%

 

 

 

15.36

%

Tier 1 risk-based capital ratio

 

 

13.67

%

 

 

 

13.91

%

 

 

 

14.35

%

Common equity tier 1 ratio

 

 

13.67

%

 

 

 

13.91

%

 

 

 

14.35

%

Leverage ratio

 

 

10.85

%

 

 

 

10.98

%

 

 

 

12.11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Represents noninterest expense divided by the sum of net interest income and noninterest income.

 

Financial Highlights (unaudited)

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

 

 

For the Nine Months Ended

 

 

 

 

September 30,

 

 

 

September 30,

 

 

 

 

2020

 

 

 

2019

 

Income Statement Data:

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

$

40,281

 

 

 

$

44,077

 

Interest expense

 

 

 

7,098

 

 

 

 

10,883

 

Net interest income

 

 

 

33,183

 

 

 

 

33,194

 

Provision for loan losses

 

 

 

4,130

 

 

 

 

691

 

Noninterest income

 

 

 

7,379

 

 

 

 

8,912

 

Noninterest expense

 

 

 

23,528

 

 

 

 

24,855

 

Income before taxes

 

 

 

12,904

 

 

 

 

16,560

 

Provision for income taxes

 

 

 

3,594

 

 

 

 

3,984

 

Net Income

 

 

$

9,310

 

 

 

$

12,576

 

Diluted earnings per share

 

 

$

0.60

 

 

 

$

0.77

 

Performance Ratios:

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

 

1.00

%

 

 

 

1.54

%

Return on average equity

 

 

 

8.88

%

 

 

 

12.55

%

Net interest margin

 

 

 

3.71

%

 

 

 

4.25

%

Efficiency ratio (1)

 

 

 

58.00

%

 

 

 

59.03

%

 

 

 

 

 

 

 

 

 

 

 

(1) Represents noninterest expense divided by the sum of net interest income and noninterest income.

 

Financial Highlights, excluding Gain on COLI

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

 

 

For the Nine Months Ended

 

 

 

 

September 30,

 

 

 

September 30,

 

 

 

 

2020

 

 

 

2019

 

Income before taxes, as reported

 

 

$

12,904

 

 

 

$

16,560

 

Gain on COLI

 

 

 

 

 

 

 

1,228

 

Provision for income taxes

 

 

 

3,594

 

 

 

 

3,887

 

Net Income, excluding gain on COLI

 

 

$

9,310

 

 

 

$

11,445

 

Diluted earnings per share

 

 

$

0.60

 

 

 

$

0.70

 

Return on average assets

 

 

 

1.00

%

 

 

 

1.40

%

Return on average equity

 

 

 

8.88

%

 

 

 

11.42

%

Results of Operations

The reported interest income and yield on our loan portfolio are impacted by a number of components, including changes in the average contractual interest rate earned on loans and the amount of discount accretion on SBA loans. The following table reconciles both the contractual interest income and yield on our loan portfolio to the reported interest income and yield for the periods indicated.

 

 

Three Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

 

 

2020

 

 

2020

 

 

2019

 

(Dollars in thousands)

 

Interest & Fees

 

 

Yield

 

 

Interest & Fees

 

 

Yield

 

 

Interest & Fees

 

 

Yield

 

Contractual interest rate

 

$

11,715

 

 

 

4.39

%

 

$

11,667

 

 

 

4.49

%

 

$

13,492

 

 

 

5.66

%

SBA discount accretion

 

 

389

 

 

 

0.15

%

 

 

413

 

 

 

0.16

%

 

 

717

 

 

 

0.30

%

Amortization of net deferred fees/(costs)

 

 

393

 

 

 

0.15

%

 

 

375

 

 

 

0.15

%

 

 

37

 

 

 

0.02

%

Interest recognized on nonaccrual loans

 

 

48

 

 

 

0.02

%

 

 

83

 

 

 

0.03

%

 

 

(12

)

 

 

-0.01

%

Prepayment penalties and other fees

 

 

36

 

 

 

0.01

%

 

 

11

 

 

 

0.00

%

 

 

44

 

 

 

0.02

%

Yield on loans (as reported)

 

$

12,581

 

 

 

4.72

%

 

$

12,549

 

 

 

4.83

%

 

$

14,278

 

 

 

5.99

%

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2020

 

 

2019

 

(Dollars in thousands)

 

Interest & Fees

 

 

Yield

 

 

Interest & Fees

 

 

Yield

 

Contractual interest rate

 

$

36,482

 

 

 

4.71

%

 

$

39,285

 

 

 

5.69

%

SBA discount accretion

 

 

1,359

 

 

 

0.17

%

 

 

1,928

 

 

 

0.28

%

Amortization of net deferred fees/(costs)

 

 

790

 

 

 

0.10

%

 

 

192

 

 

 

0.03

%

Interest recognized on nonaccrual loans

 

 

132

 

 

 

0.02

%

 

 

(12

)

 

 

0.00

%

Prepayment penalties and other fees

 

 

60

 

 

 

0.01

%

 

 

332

 

 

 

0.05

%

Yield on loans (as reported)

 

$

38,823

 

 

 

5.01

%

 

$

41,725

 

 

 

6.05

%

Net interest margin for the third quarter of 2020 increased 11 basis points to 3.66% from 3.55% for the second quarter of 2020 primarily due to a 30 basis point decrease in the cost of interest-bearing liabilities, partially offset by a 13 basis point decrease in the reported yield on interest-earning assets.

Net interest income before provision for loan losses for the third quarter of 2020 was $11.4 million, an increase of $771,000, or 7.2%, compared to the second quarter of 2020, primarily due to a $675,000 decrease in interest expense and a $96,000 increase in interest income.

Interest income on securities available for sale and other investments for the third quarter of 2020 increased $64,000, or 17.3%, compared to the second quarter of 2020. The increase was primarily due to a $38,000 increase in interest income on securities available for sale from investment purchases during the second and third quarters of 2020 and a $26,000 increase in dividend accrual on Federal Home Loan Bank stock.

Interest income from contractual interest rates on loans for the third quarter of 2020 increased $48,000, or 0.4% compared to the second quarter of 2020, reflecting an increase of $17.2 million, or 1.6% in the average balance of loans, partially offset by a 10 basis point decrease in the average contractual interest rate on loans. The amount of discount accretion on SBA loans for the third quarter of 2020 decreased $24,000 compared to the second quarter of 2020 due to a decrease in SBA loan payoffs. The reported interest income on loans, net of SBA discount accretions and other components, for the third quarter of 2020 increased $32,000, or 0.3%, compared to the second quarter of 2020.

Interest expense for the third quarter of 2020 decreased $675,000, or 29.7%, compared to the second quarter of 2020, primarily due to continued downward adjustments of the Bank’s deposit rates after the rate cuts by the Federal Reserve in March of 2020 and a decrease of $61.7 million, or 8.4%, in the average balance of interest-bearing liabilities.

Net interest margin for the third quarter of 2020 decreased 47 basis points to 3.66% from 4.13% for the third quarter of 2019, primarily due to a 138 basis point decrease in the reported yield on interest-earning assets, partially offset by a 126 basis point decrease in the cost of interest-bearing liabilities as a result of cumulative market rate cuts of 175 basis points by the Federal Reserve in the last quarter of 2019 and first quarter of 2020.

Net interest income before provision for loan losses for the third quarter of 2020 increased $200,000, or 1.8%, to $11.4 million, compared to $11.2 million for the third quarter of 2019, primarily due to a $2.3 million decrease in interest expense, partially offset by a $2.1 million decrease in interest income.

Interest income on securities available for sale and other investments for the third quarter of 2020 decreased $399,000, or 47.8%, compared to the third quarter of 2019. The decrease was primarily due to a $362,000 decrease in interest income on Fed funds as a result of the aforementioned cumulative rate cuts.

Interest income from contractual interest rates on loans for the third quarter of 2020 decreased $1.8 million, or 13.2%, compared to the third quarter of 2019, reflecting a 127 basis point decrease in the average contractual interest rate on loans, primarily due to the aforementioned cumulative rate cuts, partially offset by an increase of $115.7 million, or 12.2% in the average balance of loans. The amount of discount accretion on SBA loans for the third quarter of 2020 decreased $328,000 compared to the third quarter of 2019, due to a decrease in SBA loan payoffs. The reported interest income on loans, net of SBA discount accretions and other components, for the third quarter of 2020 decreased $1.7 million, or 11.9%, compared to the third quarter of 2019.

Interest expense for the third quarter of 2020 decreased $2.3 million, or 59.0%, compared to the third quarter of 2019, primarily due to the Bank’s downward adjustments in deposit rates after the rate cuts by the Federal Reserve in March of 2020 and a decrease of $27.8 million, or 4.0%, in the average balance of interest-bearing liabilities.

The following tables show the asset yields, liability costs, net interest spread, and net interest margin for the periods indicated, along with the percentage changes in the periods indicated.

 

 

Three Months Ended

 

 

 

Percentage Change

 

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

 

 

Q3-20

 

 

Q3-20

 

 

 

2020

 

 

2020

 

 

2019

 

 

 

vs. Q2-20

 

 

vs. Q3-19

 

Yield on loans

 

 

4.72

%

 

 

4.83

%

 

 

5.99

%

 

 

 

-0.11

%

 

 

-1.27

%

Yield on interest-earning assets

 

 

4.18

%

 

 

4.31

%

 

 

5.56

%

 

 

 

-0.13

%

 

 

-1.38

%

Cost of interest-bearing liabilities

 

 

0.94

%

 

 

1.24

%

 

 

2.20

%

 

 

 

-0.30

%

 

 

-1.26

%

Cost of deposits

 

 

0.56

%

 

 

0.83

%

 

 

1.58

%

 

 

 

-0.27

%

 

 

-1.02

%

Cost of funds

 

 

0.56

%

 

 

0.83

%

 

 

1.58

%

 

 

 

-0.27

%

 

 

-1.02

%

Net interest spread

 

 

3.24

%

 

 

3.07

%

 

 

3.36

%

 

 

 

0.17

%

 

 

-0.12

%

Net interest margin

 

 

3.66

%

 

 

3.55

%

 

 

4.13

%

 

 

 

0.11

%

 

 

-0.47

%

 

 

Nine Months Ended

 

 

Percentage Change

 

 

 

September 30,

 

 

September 30,

 

 

2020 YTD

 

 

 

2020

 

 

2019

 

 

vs. 2019 YTD

 

Yield on loans

 

 

5.01

%

 

 

6.05

%

 

 

-1.04

%

Yield on interest-earning assets

 

 

4.51

%

 

 

5.65

%

 

 

-1.14

%

Cost of interest-bearing liabilities

 

 

1.33

%

 

 

2.17

%

 

 

-0.84

%

Cost of deposits

 

 

0.88

%

 

 

1.54

%

 

 

-0.66

%

Cost of funds

 

 

0.87

%

 

 

1.54

%

 

 

-0.67

%

Net interest spread

 

 

3.18

%

 

 

3.48

%

 

 

-0.30

%

Net interest margin

 

 

3.71

%

 

 

4.25

%

 

 

-0.54

%

The Bank recorded $1.4 million in provision for loan losses for the third quarter of 2020. Management has made further adjustments to the qualitative factors on all loan types during the third quarter of 2020 to reflect persistent adverse impacts on national, state, and local economies caused by the COVID-19 pandemic. The increases in qualitative factors accounted for $1.2 million, or 80%, of provision for loan losses for the quarter. The Bank recorded provision for loan losses of $2.0 million for the second quarter of 2020 and $290,000 for the third quarter of 2019.

Noninterest income for the third quarter of 2020 was $3.0 million, an increase of $959,000, or 46.5%, from $2.1 million for the second quarter of 2020, primarily due to an increase of $877,000 in gain on sale of loans and an increase of $69,000 in loan servicing fees from slower SBA loan payoffs.

Gain on sale of loans for the third quarter of 2020 was $1.8 million, an increase of $877,000, compared to $936,000 for the second quarter of 2020. The Bank sold $24.0 million in SBA loans with an average premium of 9.66% in the third quarter of 2020, compared to the sale of $14.9 million in SBA loans with an average premium of 7.94% in the second quarter of 2020.

Noninterest income for the third quarter of 2020 was $3.0 million, an increase of $289,000, compared to $2.7 million for the third quarter of 2019, primarily due to an increase of $340,000 in loan servicing fees from slower SBA loan payoffs and an increase of $99,000 in gain on sale of loans, partially offset by a decrease of $140,000 in service charges on deposits. Gain on sale of loans for the third quarter of 2019 was $1.7 million from the sale of $22.2 million in SBA loans with an average premium of 8.85%.

Noninterest expense for the third quarter of 2020 was $8.0 million, an increase of $653,000, or 8.9%, compared to $7.3 million for the second quarter of 2020. The increase was primarily due to an increase of $739,000 in salary and employee benefits and an increase of $115,000 in foundation donation and other contributions. The increase in salary and employee benefits was primarily due to a decrease in deferred loan origination costs. The deferred loan origination costs for the third quarter of 2020 was $612,000, a decrease of $801,000, compared to $1.4 million for the second quarter of 2020 with the origination of 924 SBA Paycheck Protection Program (PPP) loans.

Noninterest expense for the third quarter of 2020 was $8.0 million, a decrease of $437,000, or 5.2%, compared to $8.4 million for the third quarter of 2019. The decrease was primarily due to a decrease of $263,000 in salary and employee benefits, a decrease of $101,000 in promotion and advertising expenses, and a decrease of $182,000 in other expenses, partially offset by an increase of $133,000 in FDIC insurance and regulatory assessments expenses. The decrease in salary and employee benefits was primarily due to an increase in deferred loan origination costs. The deferred loan origination costs of $612,000 for the third quarter of 2020 was $339,000 higher than $273,000 for the third quarter of 2019, primarily due to more loan originations in the third quarter of 2020. The FDIC insurance and regulatory assessments expenses was lower during the second half of 2019 due to the small bank assessment credits that were applied. Management continues to monitor and manage overhead expenses as earnings have been adversely impacted by a lower rate environment and higher loan loss provisions in 2020.

Income tax provision was $1.5 million for the third quarter of 2020, $972,000 for the second quarter of 2020 and $1.2 million for the third quarter of 2019. The effective tax rate for the third quarter of 2020 was 28.9%, compared to 28.7% for the second quarter of 2020 and 23.6% for the third quarter of 2019. The higher effective tax rate for the third quarter of 2020 compared to the third quarter of 2019 was primarily due to realizing a lower amount of tax benefits resulting from the exercise of non-qualified stock options during the third quarter of 2020.

Balance Sheet

Total assets were $1.34 billion at September 30, 2020, an increase of $51.8 million, or 4.0%, compared to $1.29 billion at June 30, 2020, and an increase of $187.9 million, or 16.3%, compared to $1.15 billion at September 30, 2019.

Gross loans, net of unearned income, were $1.07 billion at September 30, 2020, an increase of $29.3 million, or 2.8.%, from $1.04 billion at June 30, 2020, and an increase of $108.4 million, or 11.2%, from $964.4 million at September 30, 2019.

New loan originations totaled $140.2 million for the third quarter of 2020, including $1.3 million in SBA PPP loans and $76.3 million in other SBA loans, compared to $104.1 million for the second quarter of 2020, including $64.9 million in SBA PPP loans and $19.3 million in other SBA loans, and $100.3 million for the third quarter of 2019, including $30.9 million in SBA loans. Loan payoffs were $47.1 million for the third quarter of 2020, compared to $21.7 million for the second quarter of 2020, and $38.7 million for the third quarter of 2019.

Total deposits were $1.17 billion at September 30, 2020, an increase of $49.4 million, or 4.4%, from $1.12 billion at June 30, 2020, and an increase of $174.2 million, or 17.5%, from $996.0 million at September 30, 2019. Noninterest-bearing deposits were $488.8 million at September 30, 2020, compared to $428.8 million at June 30, 2020, and $296.8 million at September 30, 2019. The increase in noninterest-bearing deposits during the third quarter of 2020 was primarily due to new accounts being opened during the quarter as well as increased balances from our existing accounts.

Noninterest-bearing deposits accounted for 41.8% of total deposits at September 30, 2020, compared to 38.2% at June 30, 2020, and 29.8% at September 30, 2019. The following table shows the Bank’s deposits, by type as a percentage of total deposits as of the periods indicated.

 

 

As of

 

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

 

 

2020

 

 

2020

 

 

2019

 

Noninterest-bearing deposits

 

 

41.8

%

 

 

38.2

%

 

 

29.8

%

Interest-bearing demand deposits

 

 

28.6

%

 

 

26.2

%

 

 

27.6

%

Savings

 

 

0.5

%

 

 

0.5

%

 

 

0.3

%

Time deposits over $250,000

 

 

16.6

%

 

 

18.8

%

 

 

22.1

%

Other time deposits

 

 

12.5

%

 

 

16.3

%

 

 

20.2

%

Total deposits

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

The Bank had $10.0 million in borrowings from the Federal Home Loan Bank (FHLB) at September 30, 2020 and June 30, 2020, which has a 0% rate under the Zero-Rate Recovery Advance Program, FHLB’s pandemic relief initiatives. The Bank had no borrowings from the FHLB at September 30, 2019.

The Company’s consolidated regulatory capital ratios exceeded regulatory guidelines and the Bank’s capital ratios exceeded the regulatory guidelines for a well-capitalized financial institution under the Basel III regulatory requirements at September 30, 2020, as summarized in the following table.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory

 

 

 

 

 

 

 

 

 

 

 

Well-capitalized

 

 

Capital Ratio

 

 

 

 

 

 

 

 

 

 

 

Financial

 

 

Requirements (1),

 

 

 

 

 

 

 

 

 

 

 

Institution

 

 

Including

 

 

 

 

 

 

 

 

 

 

 

Basel III

 

 

Fully Phased-in

 

 

 

 

 

 

 

 

 

 

 

Regulatory

 

 

Capital Conservation

 

Capital Ratios

 

OP Bancorp

 

 

Open Bank

 

 

Guidelines

 

 

Buffer

 

Total risk-based capital ratio

 

 

14.93

%

 

 

14.51

%

 

 

10.00

%

 

 

10.50

%

Tier 1 risk-based capital ratio

 

 

13.67

%

 

 

13.26

%

 

 

8.00

%

 

 

8.50

%

Common equity tier 1 ratio

 

 

13.67

%

 

 

13.26

%

 

 

6.50

%

 

 

7.00

%

Leverage ratio

 

 

10.85

%

 

 

10.52

%

 

 

5.00

%

 

 

4.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Fully phased in Basel III requirement for both OP Bancorp and Open Bank includes a 2.5% capital conservation buffer, except the leverage ratio.

 

The Company announced a fourth stock repurchase program on September 9, 2020, which authorizes the Company to repurchase up to 500,000 shares of its common stock. As of October 19, 2020, as part of its fourth stock repurchase program, the Company repurchased 82,000 shares of its common stock at an average price of $6.10. Since the announcement of the initial stock repurchase program in January 2019, the Company has repurchased a total of 1.45 million shares of its common stock at an average repurchase price of $8.69 per share through October 19, 2020.

Asset Quality

Nonperforming loans were $330,000 at September 30, 2020, a decrease of $689,000 from $1.0 million at June 30, 2020 and a decrease of $1.2 million from $1.6 million at September 30, 2019.

The Bank had no other real estate owned (OREO) at September 30, 2020 and June 30, 2020. The Bank had OREO of $1.8 million at September 30, 2019.

Nonperforming assets were $330,000, or 0.02% of total assets, at September 30, 2020, compared to $1.0 million, or 0.08% of total assets, at June 30, 2020, and $3.4 million, or 0.29% of total assets, at September 30, 2019.

Nonperforming loans to gross loans were 0.3% at September 30, 2020, compared to 0.10% at June 30, 2020, and 0.16% at September 30, 2019. Total classified loans were $2.1 million, or 0.20% of gross loans, at September 30, 2020, compared to $2.8 million, or 0.27% of gross loans, at June 30, 2020, and $3.2 million, or 0.34% of gross loans, at September 30, 2019.

The following tables shows the trend of classified loans by loan type as of the date stated.

 

 

As of

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

 

2020

 

 

2020

 

 

2020

 

 

2019

 

 

2019

 

Classified loans by loan type

 

(Dollars in thousands)

 

Commercial real estate

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

SBA loans—real estate

 

 

774

 

 

 

786

 

 

 

2,021

 

 

 

2,036

 

 

 

2,247

 

SBA loans—non-real estate

 

 

121

 

 

 

124

 

 

 

159

 

 

 

33

 

 

 

36

 

Commercial and industrial

 

 

1,207

 

 

 

1,211

 

 

 

686

 

 

 

697

 

 

 

710

 

Home mortgage

 

 

 

 

 

689

 

 

 

694

 

 

 

698

 

 

 

256

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total classified loans

 

$

2,102

 

 

$

2,810

 

 

$

3,560

 

 

$

3,464

 

 

$

3,249

 

SBA guarantee balance retained

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans—real estate

 

 

 

 

 

 

 

 

357

 

 

 

363

 

 

 

516

 

SBA loans—non-real estate

 

 

 

 

 

 

 

 

33

 

 

 

33

 

 

 

36

 

Total SBA unsold guarantee portion

 

$

 

 

$

 

 

$

390

 

 

$

396

 

 

$

552

 

Total classified loans, net of SBA guarantee balance retained

 

$

2,102

 

 

$

2,810

 

 

$

3,170

 

 

$

3,068

 

 

$

2,697

 

Loans in deferred status were 42 loans for an aggregate balance of $56.9 million, or 5% of total loans at September 30, 2020, compared to 155 loans for an aggregate balance of $190.9 million, or 18% of total loans at June 30, 2020. Since we started loan deferments under the CARES Act in the second quarter of 2020, 130 loans for an aggregate balance of $173.0 million have resumed regular payments or paid off through September 30, 2020.

The allowance for loan losses (ALL) was $14.2 million at September 30, 2020, compared to $12.8 million at June 30, 2020, and $9.6 million at September 30, 2019. The ALL was 1.32% of gross loans at September 30, 2020, 1.22% of gross loans at June 30, 2020 and 1.00% at September 30, 2019. Excluding fully guaranteed SBA PPP loans, the ALL was 1.40% of gross loans at September 30, 2020, 1.30% of gross loans at June 30, 2020, and 1.00% of gross loans at September 30, 2019. The ALL was 4,295% of nonperforming assets at September 30, 2020, 1,252% at June 30, 2020, and 285% at September 30, 2019.

About OP Bancorp

OP Bancorp, the holding company for Open Bank (the “Bank”), is a California corporation whose common stock is quoted on the Nasdaq Global Market under the ticker symbol, “OPBK.” The Bank is engaged in the general commercial banking business in Los Angeles, Orange, and Santa Clara Counties, California, and Carrollton, Texas and is focused on serving the banking needs of small- and medium-sized businesses, professionals, and residents with a particular emphasis on Korean and other ethnic minority communities. The Bank currently operates with nine full branch offices in Downtown Los Angeles, Los Angeles Fashion District, Los Angeles Koreatown, Gardena, Buena Park, and Santa Clara, California and Carrollton, Texas. The Bank also has four loan production offices in Atlanta, Georgia, Aurora, Colorado, and Lynnwood and Seattle, Washington. The Bank commenced its operations on June 10, 2005 as First Standard Bank and changed its name to Open Bank in October 2010. Its headquarters is located at 1000 Wilshire Blvd., Suite 500, Los Angeles, California 90017. Phone 213.892.9999; www.myopenbank.com Member FDIC, Equal Housing Lender.

Cautionary Note Regarding Forward-Looking Statements

Certain matters set forth herein (including any exhibits hereto) constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to the Company’s current business plans and expectations regarding future operating results. Forward-looking statements may include, but are not limited to, the use of forward-looking language, such as “likely result in,” “expects,” “anticipates,” “estimates,” “forecasts,” “projects,” “intends to,” or may include other similar words or phrases, such as “believes,” “plans,” “trend,” “objective,” “continues,” “remains,” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” “may,” “might,” “can,” or similar verbs. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected. These risks and uncertainties, some of which are beyond our control, include, but are not limited to: business and economic conditions, particularly those affecting the financial services industry and our primary market areas; our ability to successfully manage our credit risk and the sufficiency of our allowance for loan losses; factors that can impact the performance of our loan portfolio, including real estate values and liquidity in our primary market areas, the financial health of our commercial borrowers, the success of construction projects that we finance, including any loans acquired in acquisition transactions; our ability to effectively execute our strategic plan and manage our growth; interest rate fluctuations, which could have an adverse effect on our profitability; liquidity issues, including fluctuations in the fair value and liquidity of the securities we hold for sale and our ability to raise additional capital, if necessary; external economic and/or market factors, such as changes in monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve, inflation or deflation, changes in the demand for loans, and fluctuations in consumer spending, borrowing and savings habits, which may have an adverse impact on our financial condition; continued or increasing competition from other financial institutions, credit unions, and non-bank financial services companies, many of which are subject to different regulations than we are; challenges arising from unsuccessful attempts to expand into new geographic markets, products, or services; restraints on the ability of Open Bank to pay dividends to us, which could limit our liquidity; increased capital requirements imposed by banking regulators, which may require us to raise capital at a time when capital is not available on favorable terms or at all; a failure in the internal controls we have implemented to address the risks inherent to the business of banking; inaccuracies in our assumptions about future events, which could result in material differences between our financial projections and actual financial performance; changes in our management personnel or our inability to retain motivate and hire qualified management personnel; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems; disruptions, security breaches, or other adverse events affecting the third-party vendors who perform several of our critical processing functions; an inability to keep pace with the rate of technological advances due to a lack of resources to invest in new technologies; risks related to potential acquisitions; political developments, uncertainties or instability, catastrophic events, acts of war or terrorism, or natural disasters, such as earthquakes, drought, pandemic diseases (such as the coronavirus) or extreme weather events, any of which may affect services we use or affect our customers, employees or third parties with which we conduct business; incremental costs and obligations associated with operating as a public company; the impact of any claims or legal actions to which we may be subject, including any effect on our reputation; compliance with governmental and regulatory requirements, including the Dodd-Frank Act and others relating to banking, consumer protection, securities and tax matters, and our ability to maintain licenses required in connection with commercial mortgage origination, sale and servicing operations; changes in federal tax law or policy; the rapidly changing uncertainties related to the Coronavirus pandemic including, but not limited to, the potential adverse effect of the pandemic on the economy, our employees and customers, and our financial performance; the impact of the federal CARES Act and the significant additional lending activities undertaken by the Company in connection with the Small Business Administration’s Paycheck Protection Program enacted thereunder, including risks to the Company with respect to the uncertain application by the Small Business Administration of new borrower and loan eligibility, forgiveness and audit criteria; and our ability the manage the foregoing and other factors set forth in the Company’s public reports. We describe these and other risks that could affect our results in Item 1A. “Risk Factors,” of our latest Annual Report on Form 10-K for the year ended December 31, 2019 and in our other subsequent filings with the Securities and Exchange Commission. The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this report. Because of these risks and other uncertainties, our actual future results, performance or achievement, or industry results, may be materially different from the results indicated by the forward looking statements in this report. In addition, our past results of operations are not necessarily indicative of our future results. You should not rely on any forward looking statements, which represent our beliefs, assumptions and estimates only as of the dates on which they were made, as predictions of future events. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

Consolidated Balance Sheet (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

 

 

09/30/2020

 

 

06/30/2020

 

 

% change

 

 

09/30/2019

 

 

% change

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

87,983

 

 

$

112,217

 

 

 

-21.6

%

 

$

89,107

 

 

 

-1.3

%

Securities available for sale, at fair value

 

 

93,482

 

 

 

75,402

 

 

 

24.0

%

 

 

52,295

 

 

 

78.8

%

Other investments

 

 

10,002

 

 

 

9,987

 

 

 

0.2

%

 

 

9,173

 

 

 

9.0

%

Loans held for sale

 

 

41,430

 

 

 

8,795

 

 

 

371.1

%

 

 

368

 

 

 

11158.2

%

Real Estate Loans

 

 

640,281

 

 

 

637,295

 

 

 

0.5

%

 

 

594,447

 

 

 

7.7

%

SBA Loans

 

 

213,678

 

 

 

195,605

 

 

 

9.2

%

 

 

136,232

 

 

 

56.8

%

C & I Loans

 

 

91,814

 

 

 

88,375

 

 

 

3.9

%

 

 

107,730

 

 

 

-14.8

%

Home Mortgage Loans

 

 

125,656

 

 

 

120,597

 

 

 

4.2

%

 

 

123,092

 

 

 

2.1

%

Consumer & Other Loans

 

 

1,361

 

 

 

1,634

 

 

 

-16.7

%

 

 

2,869

 

 

 

-52.6

%

Gross loans, net of unearned income

 

 

1,072,790

 

 

 

1,043,506

 

 

 

2.8

%

 

 

964,370

 

 

 

11.2

%

Allowance for loan losses

 

 

(14,164

)

 

 

(12,764

)

 

 

11.0

%

 

 

(9,640

)

 

 

46.9

%

Net loans receivable

 

 

1,058,626

 

 

 

1,030,742

 

 

 

2.7

%

 

 

954,730

 

 

 

10.9

%

Premises and equipment, net

 

 

4,756

 

 

 

4,881

 

 

 

-2.6

%

 

 

5,367

 

 

 

-11.4

%

Accrued interest receivable

 

 

4,968

 

 

 

4,823

 

 

 

3.0

%

 

 

3,140

 

 

 

58.2

%

Servicing assets

 

 

7,222

 

 

 

6,972

 

 

 

3.6

%

 

 

6,959

 

 

 

3.8

%

Company owned life insurance

 

 

10,815

 

 

 

10,748

 

 

 

0.6

%

 

 

10,551

 

 

 

2.5

%

Deferred tax assets

 

 

3,911

 

 

 

3,535

 

 

 

10.6

%

 

 

2,358

 

 

 

65.9

%

Other real estate owned (OREO)

 

 

-

 

 

 

-

 

 

 

0.0

%

 

 

1,817

 

 

 

-100.0

%

Operating right-of-use assets

 

 

7,151

 

 

 

7,517

 

 

 

-4.9

%

 

 

8,606

 

 

 

-16.9

%

Other assets

 

 

9,475

 

 

 

12,392

 

 

 

-23.5

%

 

 

7,463

 

 

 

27.0

%

Total assets

 

$

1,339,821

 

 

$

1,288,011

 

 

 

4.0

%

 

$

1,151,934

 

 

 

16.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

488,815

 

 

$

428,416

 

 

 

14.1

%

 

$

296,831

 

 

 

64.7

%

Savings

 

 

5,382

 

 

 

5,868

 

 

 

-8.3

%

 

 

3,316

 

 

 

62.3

%

Money market and others

 

 

334,599

 

 

 

293,165

 

 

 

14.1

%

 

 

274,698

 

 

 

21.8

%

Time deposits over $250,000

 

 

194,630

 

 

 

210,691

 

 

 

-7.6

%

 

 

219,547

 

 

 

-11.3

%

Other time deposits

 

 

146,738

 

 

 

182,580

 

 

 

-19.6

%

 

 

201,601

 

 

 

-27.2

%

Total deposits

 

 

1,170,164

 

 

 

1,120,720

 

 

 

4.4

%

 

 

995,993

 

 

 

17.5

%

Other borrowings

 

 

10,000

 

 

 

10,000

 

 

 

0.0

%

 

 

-

 

 

 

100.0

%

Accrued interest payable

 

 

1,355

 

 

 

1,964

 

 

 

-31.0

%

 

 

2,541

 

 

 

-46.7

%

Operating lease liabilities

 

 

8,857

 

 

 

9,282

 

 

 

-4.6

%

 

 

10,335

 

 

 

-14.3

%

Other liabilities

 

 

7,896

 

 

 

6,909

 

 

 

14.3

%

 

 

5,472

 

 

 

44.3

%

Total liabilities

 

 

1,198,272

 

 

 

1,148,875

 

 

 

4.3

%

 

 

1,014,341

 

 

 

18.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

79,600

 

 

 

79,925

 

 

 

-0.4

%

 

 

87,085

 

 

 

-8.6

%

Additional paid-in capital

 

 

8,382

 

 

 

8,218

 

 

 

2.0

%

 

 

7,154

 

 

 

17.2

%

Retained earnings

 

 

52,590

 

 

 

50,056

 

 

 

5.1

%

 

 

43,086

 

 

 

22.1

%

Accumulated other comprehensive income

 

 

977

 

 

 

937

 

 

 

4.3

%

 

 

268

 

 

 

264.6

%

Total shareholders' equity

 

 

141,549

 

 

 

139,136

 

 

 

1.7

%

 

 

137,593

 

 

 

2.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Shareholders' Equity

 

$

1,339,821

 

 

$

1,288,011

 

 

 

4.0

%

 

$

1,151,934

 

 

 

16.3

%

Consolidated Statements of Income (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

 

Three Months Ended

 

 

 

09/30/2020

 

 

06/30/2020

 

 

% change

 

 

09/30/2019

 

 

% change

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

12,581

 

 

$

12,549

 

 

 

0.3

%

 

$

14,278

 

 

 

-11.9

%

Interest on securities available for sale

 

 

319

 

 

 

281

 

 

 

13.5

%

 

 

332

 

 

 

-3.9

%

Other interest income

 

 

116

 

 

 

90

 

 

 

28.9

%

 

 

502

 

 

 

-76.9

%

Total interest income

 

 

13,016

 

 

 

12,920

 

 

 

0.7

%

 

 

15,112

 

 

 

-13.9

%

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

1,597

 

 

 

2,272

 

 

 

-29.7

%

 

 

3,893

 

 

 

-59.0

%

Total interest expense

 

 

1,597

 

 

 

2,272

 

 

 

-29.7

%

 

 

3,893

 

 

 

-59.0

%

Net interest income

 

 

11,419

 

 

 

10,648

 

 

 

7.2

%

 

 

11,219

 

 

 

1.8

%

Provision for loan losses

 

 

1,399

 

 

 

1,988

 

 

 

-29.6

%

 

 

290

 

 

 

382.4

%

Net interest income after provision for loan losses

 

 

10,020

 

 

 

8,660

 

 

 

15.7

%

 

 

10,929

 

 

 

-8.3

%

Noninterest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposits

 

 

251

 

 

 

230

 

 

 

9.1

%

 

 

391

 

 

 

-35.8

%

Loan servicing fees, net of amortization

 

 

583

 

 

 

514

 

 

 

13.4

%

 

 

243

 

 

 

139.9

%

Gain on sale of loans

 

 

1,813

 

 

 

936

 

 

 

93.7

%

 

 

1,714

 

 

 

5.8

%

Other income

 

 

374

 

 

 

382

 

 

 

-2.1

%

 

 

384

 

 

 

-2.6

%

Total noninterest income

 

 

3,021

 

 

 

2,062

 

 

 

46.5

%

 

 

2,732

 

 

 

10.6

%

Noninterest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

5,086

 

 

 

4,347

 

 

 

17.0

%

 

 

5,349

 

 

 

-4.9

%

Occupancy and equipment

 

 

1,266

 

 

 

1,241

 

 

 

2.0

%

 

 

1,232

 

 

 

2.8

%

Data processing and communication

 

 

424

 

 

 

414

 

 

 

2.4

%

 

 

385

 

 

 

10.1

%

Professional fees

 

 

287

 

 

 

276

 

 

 

4.0

%

 

 

261

 

 

 

10.0

%

FDIC insurance and regulatory assessments

 

 

112

 

 

 

117

 

 

 

-4.3

%

 

 

(21

)

 

 

-633.3

%

Promotion and advertising

 

 

81

 

 

 

163

 

 

 

-50.3

%

 

 

182

 

 

 

-55.5

%

Directors’ fees

 

 

147

 

 

 

223

 

 

 

-34.1

%

 

 

228

 

 

 

-35.5

%

Foundation donation and other contributions

 

 

360

 

 

 

245

 

 

 

46.9

%

 

 

402

 

 

 

-10.4

%

Other expenses

 

 

224

 

 

 

308

 

 

 

-27.3

%

 

 

406

 

 

 

-44.8

%

Total noninterest expense

 

 

7,987

 

 

 

7,334

 

 

 

8.9

%

 

 

8,424

 

 

 

-5.2

%

Income before income taxes

 

 

5,054

 

 

 

3,388

 

 

 

49.2

%

 

 

5,237

 

 

 

-3.5

%

Provision for income taxes

 

 

1,459

 

 

 

972

 

 

 

50.1

%

 

 

1,237

 

 

 

17.9

%

Net income

 

$

3,595

 

 

$

2,416

 

 

 

48.8

%

 

$

4,000

 

 

 

-10.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

9.36

 

 

$

9.23

 

 

 

1.4

%

 

$

8.76

 

 

 

6.8

%

Basic EPS

 

$

0.23

 

 

$

0.16

 

 

 

43.8

%

 

$

0.25

 

 

 

-8.0

%

Diluted EPS

 

$

0.23

 

 

$

0.16

 

 

 

43.8

%

 

$

0.24

 

 

 

-4.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares of common stock outstanding

 

 

15,126,270

 

 

 

15,068,030

 

 

 

0.4

%

 

 

15,711,580

 

 

 

-3.7

%

Weighted Average Shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Basic

 

 

15,148,833

 

 

 

15,072,423

 

 

 

0.5

%

 

 

15,768,654

 

 

 

-3.9

%

- Diluted

 

 

15,182,733

 

 

 

15,112,618

 

 

 

0.5

%

 

 

16,007,486

 

 

 

-5.2

%

Key Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except ratios)

 

Three Months Ended

 

 

 

9/30/2020

 

 

6/30/2020

 

 

% change

 

 

9/30/2019

 

 

% change

 

Return on average assets (ROA)*

 

 

1.11

%

 

 

0.77

%

 

 

0.34

%

 

 

1.41

%

 

 

-0.30

%

Return on average equity (ROE) *

 

 

10.22

%

 

 

6.97

%

 

 

3.25

%

 

 

11.74

%

 

 

-1.52

%

Net interest margin *

 

 

3.66

%

 

 

3.55

%

 

 

0.11

%

 

 

4.13

%

 

 

-0.47

%

Efficiency ratio

 

 

55.31

%

 

 

57.70

%

 

 

-2.39

%

 

 

60.39

%

 

 

-5.08

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total risk-based capital ratio

 

 

14.93

%

 

 

15.16

%

 

 

-0.23

%

 

 

15.36

%

 

 

-0.43

%

Tier 1 risk-based capital ratio

 

 

13.67

%

 

 

13.91

%

 

 

-0.24

%

 

 

14.35

%

 

 

-0.68

%

Common equity tier 1 ratio

 

 

13.67

%

 

 

13.91

%

 

 

-0.24

%

 

 

14.35

%

 

 

-0.68

%

Leverage ratio

 

 

10.85

%

 

 

10.98

%

 

 

-0.13

%

 

 

12.11

%

 

 

-1.26

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Annualized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Income (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

 

Nine Months Ended

 

 

 

09/30/2020

 

 

09/30/2019

 

 

% change

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

38,823

 

 

$

41,725

 

 

 

-7.0

%

Interest on securities available for sale

 

 

920

 

 

 

1,019

 

 

 

-9.7

%

Other interest income

 

 

538

 

 

 

1,333

 

 

 

-59.6

%

Total interest income

 

 

40,281

 

 

 

44,077

 

 

 

-8.6

%

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

7,098

 

 

 

10,883

 

 

 

-34.8

%

Total interest expense

 

 

7,098

 

 

 

10,883

 

 

 

-34.8

%

Net interest income

 

 

33,183

 

 

 

33,194

 

 

 

0.0

%

Provision for loan losses

 

 

4,130

 

 

 

691

 

 

 

497.7

%

Net interest income after provision for loan losses

 

 

29,053

 

 

 

32,503

 

 

 

-10.6

%

Noninterest income

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposits

 

 

849

 

 

 

1,252

 

 

 

-32.2

%

Loan servicing fees, net of amortization

 

 

1,489

 

 

 

853

 

 

 

74.6

%

Gain on sale of loans

 

 

3,904

 

 

 

4,379

 

 

 

-10.8

%

Other income

 

 

1,137

 

 

 

2,428

 

 

 

-53.2

%

Total noninterest income

 

 

7,379

 

 

 

8,912

 

 

 

-17.2

%

Noninterest expense

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

14,505

 

 

 

15,862

 

 

 

-8.6

%

Occupancy and equipment

 

 

3,737

 

 

 

3,441

 

 

 

8.6

%

Data processing and communication

 

 

1,247

 

 

 

1,110

 

 

 

12.3

%

Professional fees

 

 

836

 

 

 

711

 

 

 

17.6

%

FDIC insurance and regulatory assessments

 

 

334

 

 

 

188

 

 

 

77.7

%

Promotion and advertising

 

 

405

 

 

 

543

 

 

 

-25.4

%

Directors’ fees

 

 

603

 

 

 

680

 

 

 

-11.3

%

Foundation donation and other contributions

 

 

935

 

 

 

1,169

 

 

 

-20.0

%

Other expenses

 

 

926

 

 

 

1,151

 

 

 

-19.5

%

Total noninterest expense

 

 

23,528

 

 

 

24,855

 

 

 

-5.3

%

Income before income taxes

 

 

12,904

 

 

 

16,560

 

 

 

-22.1

%

Provision for income taxes

 

 

3,594

 

 

 

3,984

 

 

 

-9.8

%

Net income

 

$

9,310

 

 

$

12,576

 

 

 

-26.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

9.36

 

 

$

8.76

 

 

 

6.8

%

Basic EPS

 

$

0.60

 

 

$

0.78

 

 

 

-23.1

%

Diluted EPS

 

$

0.60

 

 

$

0.77

 

 

 

-22.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares of common stock outstanding

 

 

15,126,270

 

 

 

15,711,580

 

 

 

-3.7

%

Weighted Average Shares:

 

 

 

 

 

 

 

 

 

 

 

 

- Basic

 

 

15,235,617

 

 

 

15,756,886

 

 

 

-3.3

%

- Diluted

 

 

15,284,190

 

 

 

15,992,015

 

 

 

-4.4

%

Key Ratios

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except ratios)

 

Nine Months Ended

 

 

 

9/30/2020

 

 

9/30/2019

 

 

% change

 

Return on average assets (ROA)*

 

 

1.00

%

 

 

1.54

%

 

 

-0.54

%

Return on average equity (ROE) *

 

 

8.88

%

 

 

12.55

%

 

 

-3.67

%

Net interest margin *

 

 

3.71

%

 

 

4.25

%

 

 

-0.54

%

Efficiency ratio

 

 

58.00

%

 

 

59.03

%

 

 

-1.03

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Total risk-based capital ratio

 

 

14.93

%

 

 

15.36

%

 

 

-0.43

%

Tier 1 risk-based capital ratio

 

 

13.67

%

 

 

14.35

%

 

 

-0.68

%

Common equity tier 1 ratio

 

 

13.67

%

 

 

14.35

%

 

 

-0.68

%

Leverage ratio

 

 

10.85

%

 

 

12.11

%

 

 

-1.26

%

 

 

 

 

 

 

 

 

 

 

 

 

 

* Annualized

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except ratios)

 

Three Months Ended

 

 

 

9/30/2020

 

 

6/30/2020

 

 

3/31/2020

 

 

12/31/2019

 

 

9/30/2019

 

Nonaccrual Loans

 

$

-

 

 

$

689

 

 

$

1,203

 

 

$

1,215

 

 

$

1,234

 

Loans 90 days or more past due, accruing

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Accruing restructured loans

 

 

330

 

 

 

330

 

 

 

330

 

 

 

333

 

 

 

336

 

Nonperforming loans

 

 

330

 

 

 

1,019

 

 

 

1,533

 

 

 

1,548

 

 

 

1,570

 

Other real estate owned (OREO)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,817

 

Nonperforming assets

 

 

330

 

 

 

1,019

 

 

 

1,533

 

 

 

1,548

 

 

 

3,387

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Classified loans

 

 

2,102

 

 

 

2,810

 

 

 

3,560

 

 

 

3,464

 

 

 

3,249

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets/total assets

 

 

0.02

%

 

 

0.08

%

 

 

0.13

%

 

 

0.13

%

 

 

0.29

%

Nonperforming assets/gross loans plus OREO

 

 

0.03

%

 

 

0.10

%

 

 

0.15

%

 

 

0.16

%

 

 

0.35

%

Nonperforming loans/gross loans

 

 

0.03

%

 

 

0.10

%

 

 

0.15

%

 

 

0.16

%

 

 

0.16

%

Allowance for loan losses/nonperforming loans

 

 

4295

%

 

 

1252

%

 

 

701

%

 

 

649

%

 

 

614

%

Allowance for loan losses/nonperforming assets

 

 

4295

%

 

 

1252

%

 

 

701

%

 

 

649

%

 

 

285

%

Allowance for loan losses/gross loans

 

 

1.32

%

 

 

1.22

%

 

 

1.08

%

 

 

1.02

%

 

 

1.00

%

Classified loans/gross loans

 

 

0.20

%

 

 

0.27

%

 

 

0.36

%

 

 

0.35

%

 

 

0.34

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs(recoveries)

 

$

-

 

 

$

(28

)

 

$

45

 

 

$

(1

)

 

$

175

 

Net charge-offs(recoveries) to average gross loans *

 

 

0.00

%

 

 

-0.01

%

 

 

0.02

%

 

 

0.00

%

 

 

0.07

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Annualized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruing delinquent loans 30-89 days past due

 

9/30/2020

 

 

6/30/2020

 

 

3/31/2020

 

 

12/31/2019

 

 

9/30/2019

 

30-59 days

 

$

600

 

 

$

565

 

 

$

1,788

 

 

$

3,899

 

 

$

2,580

 

60-89 days

 

 

-

 

 

 

-

 

 

 

2,277

 

 

 

126

 

 

 

580

 

Total

 

 

600

 

 

 

565

 

 

 

4,065

 

 

 

4,025

 

 

 

3,160

 

Average Balance Sheet, Interest and Yield/Rate Analysis

 

(Dollars in thousands)

 

Three Months Ended

 

 

 

September 30, 2020

 

 

June 30, 2020

 

 

September 30, 2019

 

 

 

Average

Balance

 

 

Interest

and Fees

 

 

Yield/ Rate

 

 

Average

Balance

 

 

Interest

and Fees

 

 

Yield/ Rate

 

 

Average

Balance

 

 

Interest

and Fees

 

 

Yield/ Rate

 

Interest-Earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold and other investments

 

$

93,827

 

 

$

116

 

 

 

0.49

%

 

$

100,083

 

 

$

90

 

 

 

0.36

%

 

$

78,216

 

 

$

502

 

 

 

2.52

%

Securities available for sale

 

 

84,869

 

 

 

319

 

 

 

1.50

 

 

 

60,544

 

 

 

281

 

 

 

1.86

 

 

 

54,472

 

 

 

332

 

 

 

2.44

 

Total investments

 

 

178,696

 

 

 

435

 

 

 

0.97

 

 

 

160,627

 

 

 

371

 

 

 

0.92

 

 

 

132,688

 

 

 

834

 

 

 

2.49

 

Real estate loans

 

 

630,255

 

 

 

7,461

 

 

 

4.71

 

 

 

638,359

 

 

 

7,500

 

 

 

4.73

 

 

 

573,102

 

 

 

7,978

 

 

 

5.52

 

SBA loans

 

 

219,183

 

 

 

2,719

 

 

 

4.94

 

 

 

190,042

 

 

 

2,615

 

 

 

5.53

 

 

 

144,439

 

 

 

3,213

 

 

 

8.83

 

C & I loans

 

 

89,103

 

 

 

847

 

 

 

3.78

 

 

 

93,633

 

 

 

920

 

 

 

3.95

 

 

 

102,311

 

 

 

1,489

 

 

 

5.77

 

Home Mortgage loans

 

 

122,222

 

 

 

1,531

 

 

 

5.01

 

 

 

119,998

 

 

 

1,476

 

 

 

4.92

 

 

 

123,336

 

 

 

1,546

 

 

 

5.01

 

Consumer & other loans

 

 

1,412

 

 

 

23

 

 

 

6.48

 

 

 

2,912

 

 

 

38

 

 

 

5.28

 

 

 

3,239

 

 

 

52

 

 

 

6.39

 

Loans (1)

 

 

1,062,175

 

 

 

12,581

 

 

 

4.72

 

 

 

1,044,944

 

 

 

12,549

 

 

 

4.83

 

 

 

946,427

 

 

 

14,278

 

 

 

5.99

 

Total interest-earning assets

 

 

1,240,871

 

 

 

13,016

 

 

 

4.18

 

 

 

1,205,571

 

 

 

12,920

 

 

 

4.31

 

 

 

1,079,115

 

 

 

15,112

 

 

 

5.56

 

Noninterest-earning assets

 

 

52,145

 

 

 

 

 

 

 

 

 

 

 

49,837

 

 

 

 

 

 

 

 

 

 

 

51,680

 

 

 

 

 

 

 

 

 

Total assets

 

$

1,293,016

 

 

 

 

 

 

 

 

 

 

$

1,255,408

 

 

 

 

 

 

 

 

 

 

$

1,130,795

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW and savings deposits

 

$

9,430

 

 

 

2

 

 

 

0.08

%

 

$

8,614

 

 

 

2

 

 

 

0.10

%

 

$

5,321

 

 

 

3

 

 

 

0.25

%

Money market deposits

 

 

289,512

 

 

 

392

 

 

 

0.54

 

 

 

296,327

 

 

 

481

 

 

 

0.65

 

 

 

275,259

 

 

 

1,295

 

 

 

1.87

 

Time deposits

 

 

364,928

 

 

 

1,203

 

 

 

1.31

 

 

 

426,645

 

 

 

1,789

 

 

 

1.69

 

 

 

420,922

 

 

 

2,595

 

 

 

2.45

 

Total interest-bearing deposits

 

 

663,870

 

 

 

1,597

 

 

 

0.96

 

 

 

731,586

 

 

 

2,272

 

 

 

1.25

 

 

 

701,502

 

 

 

3,893

 

 

 

2.20

 

Borrowings

 

 

10,001

 

 

 

-

 

 

 

-

 

 

 

3,959

 

 

 

-

 

 

 

-

 

 

 

120

 

 

 

-

 

 

 

0.00

 

Total interest-bearing liabilities

 

 

673,871

 

 

 

1,597

 

 

 

0.94

 

 

 

735,545

 

 

 

2,272

 

 

 

1.24

 

 

 

701,622

 

 

 

3,893

 

 

 

2.20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

460,965

 

 

 

 

 

 

 

 

 

 

 

362,779

 

 

 

 

 

 

 

 

 

 

 

275,316

 

 

 

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

17,507

 

 

 

 

 

 

 

 

 

 

 

18,362

 

 

 

 

 

 

 

 

 

 

 

17,628

 

 

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

478,472

 

 

 

 

 

 

 

 

 

 

 

381,141

 

 

 

 

 

 

 

 

 

 

 

292,944

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

140,673

 

 

 

 

 

 

 

 

 

 

 

138,722

 

 

 

 

 

 

 

 

 

 

 

136,229

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

1,293,016

 

 

 

 

 

 

 

 

 

 

$

1,255,408

 

 

 

 

 

 

 

 

 

 

$

1,130,795

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income / interest rate spreads

 

 

 

 

 

$

11,419

 

 

 

3.24

%

 

 

 

 

 

$

10,648

 

 

 

3.07

%

 

 

 

 

 

$

11,219

 

 

 

3.36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

 

 

 

 

 

 

 

 

3.66

%

 

 

 

 

 

 

 

 

 

 

3.55

%

 

 

 

 

 

 

 

 

 

 

4.13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of deposits & cost of funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits / cost of deposits

 

$

1,124,835

 

 

$

1,597

 

 

 

0.56

%

 

$

1,094,365

 

 

$

2,272

 

 

 

0.83

%

 

$

976,818

 

 

$

3,893

 

 

 

1.58

%

Total funding liabilities / cost of funds

 

$

1,134,836

 

 

$

1,597

 

 

 

0.56

%

 

$

1,098,324

 

 

$

2,272

 

 

 

0.83

%

 

$

976,938

 

 

$

3,893

 

 

 

1.58

%

 

 

 

 

 

 

 

 

 

(1) The average loan balance includes loans held for sale.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Balance Sheet, Interest and Yield/Rate Analysis

 

(Dollars in thousands)

 

Nine Months Ended

 

 

 

September 30, 2020

 

 

September 30, 2019

 

 

 

Average

Balance

 

 

Interest

and Fees

 

 

Yield/ Rate

 

 

Average

Balance

 

 

Interest

and Fees

 

 

Yield/ Rate

 

Interest-Earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold and other investments

 

$

90,733

 

 

$

538

 

 

 

0.78

%

 

$

65,911

 

 

$

1,332

 

 

 

2.67

%

Securities available for sale

 

 

66,752

 

 

 

920

 

 

 

1.84

 

 

 

54,190

 

 

 

1,019

 

 

 

2.51

 

Total investments

 

 

157,485

 

 

 

1,458

 

 

 

1.23

 

 

 

120,101

 

 

 

2,351

 

 

 

2.60

 

Real estate loans

 

 

634,178

 

 

 

23,159

 

 

 

4.88

 

 

 

551,663

 

 

 

22,964

 

 

 

5.57

 

SBA loans

 

 

182,842

 

 

 

8,001

 

 

 

5.85

 

 

 

137,663

 

 

 

9,209

 

 

 

8.94

 

C & I loans

 

 

94,455

 

 

 

3,044

 

 

 

4.30

 

 

 

104,405

 

 

 

4,641

 

 

 

5.94

 

Home Mortgage loans

 

 

121,332

 

 

 

4,521

 

 

 

4.97

 

 

 

125,788

 

 

 

4,770

 

 

 

5.06

 

Consumer & other loans

 

 

2,362

 

 

 

98

 

 

 

5.60

 

 

 

2,864

 

 

 

141

 

 

 

6.58

 

Loans (1)

 

 

1,035,169

 

 

 

38,823

 

 

 

5.01

 

 

 

922,383

 

 

 

41,725

 

 

 

6.05

 

Total interest-earning assets

 

 

1,192,654

 

 

 

40,281

 

 

 

4.51

 

 

 

1,042,484

 

 

 

44,076

 

 

 

5.65

 

Noninterest-earning assets

 

 

50,065

 

 

 

 

 

 

 

 

 

 

 

48,215

 

 

 

 

 

 

 

 

 

Total assets

 

$

1,242,719

 

 

 

 

 

 

 

 

 

 

$

1,090,699

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW and savings deposits

 

$

8,680

 

 

 

9

 

 

 

0.14

%

 

$

5,075

 

 

 

10

 

 

 

0.25

%

Money market deposits

 

 

291,676

 

 

 

1,826

 

 

 

0.84

 

 

 

269,446

 

 

 

3,751

 

 

 

1.86

 

Time deposits

 

 

407,625

 

 

 

5,263

 

 

 

1.72

 

 

 

396,701

 

 

 

7,122

 

 

 

2.40

 

Total interest-bearing deposits

 

 

707,981

 

 

 

7,098

 

 

 

1.34

 

 

 

671,222

 

 

 

10,883

 

 

 

2.17

 

Borrowings

 

 

4,688

 

 

 

-

 

 

 

0.00

 

 

 

41

 

 

 

-

 

 

 

0.00

 

Total interest-bearing liabilities

 

 

712,669

 

 

 

7,098

 

 

 

1.33

 

 

 

671,263

 

 

 

10,883

 

 

 

2.17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

372,390

 

 

 

 

 

 

 

 

 

 

 

271,517

 

 

 

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

17,929

 

 

 

 

 

 

 

 

 

 

 

14,317

 

 

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

390,319

 

 

 

 

 

 

 

 

 

 

 

285,834

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

139,731

 

 

 

 

 

 

 

 

 

 

 

133,602

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

1,242,719

 

 

 

 

 

 

 

 

 

 

$

1,090,699

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income / interest rate spreads

 

 

 

 

 

$

33,183

 

 

 

3.18

%

 

 

 

 

 

$

33,193

 

 

 

3.48

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

 

 

 

 

 

 

 

 

3.71

%

 

 

 

 

 

 

 

 

 

 

4.25

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of deposits & cost of funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits / cost of deposits

 

$

1,080,371

 

 

$

7,098

 

 

 

0.88

%

 

$

942,739

 

 

$

10,883

 

 

 

1.54

%

Total funding liabilities / cost of funds

 

$

1,085,059

 

 

$

7,098

 

 

 

0.87

%

 

$

942,780

 

 

$

10,883

 

 

 

1.54

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) The average loan balance includes loans held for sale.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan Portfolio Breakdown by Industry

 

Excluding Home mortgage and consumer loans

 

 

 

(Dollars in thousands)

 

As of September 30, 2020

 

Industry

 

Number of accounts

 

 

% of total

 

Balance

 

 

% of total

 

Real estate lessors

 

 

226

 

 

 

11.0

%

$

356,315

 

 

 

35.8

%

- Retail

 

 

91

 

 

 

4.4

 

 

154,921

 

 

 

15.6

 

- Industrial

 

 

45

 

 

 

2.2

 

 

91,728

 

 

 

9.2

 

- Mixed use

 

 

15

 

 

 

0.7

 

 

30,444

 

 

 

3.1

 

- Office

 

 

13

 

 

 

0.6

 

 

21,120

 

 

 

2.1

 

- Multifamily

 

 

8

 

 

 

0.4

 

 

5,682

 

 

 

0.6

 

- Other

 

 

54

 

 

 

2.6

 

 

52,420

 

 

 

5.3

 

Hotel / motel

 

 

194

 

 

 

9.4

 

 

159,911

 

 

 

16.1

 

Gas station

 

 

213

 

 

 

10.3

 

 

142,057

 

 

 

14.3

 

Wholesale

 

 

286

 

 

 

13.9

 

 

66,800

 

 

 

6.7

 

Food services / restaurant

 

 

284

 

 

 

13.8

 

 

40,461

 

 

 

4.1

 

Car washes

 

 

52

 

 

 

2.5

 

 

39,009

 

 

 

3.9

 

Laundry services

 

 

84

 

 

 

4.1

 

 

20,547

 

 

 

2.1

 

Church

 

 

23

 

 

 

1.1

 

 

14,048

 

 

 

1.4

 

Educational service

 

 

14

 

 

 

0.7

 

 

6,504

 

 

 

0.7

 

Other

 

 

684

 

 

 

33.2

 

 

149,845

 

 

 

15.1

 

Total

 

 

2,060

 

 

 

100.0

%

$

995,497

 

 

 

100.0

%

Loan Deferment Summary by Industry

 

As of September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Excluding Home mortgage and consumer loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Number of accounts

 

 

Loan balance

 

Industry

 

Number of accounts

 

 

% of deferment

 

 

% of total loans

 

 

Balance

 

 

% of deferment

 

 

% of total loans

 

Real estate lessors

 

 

6

 

 

 

25.0

%

 

 

2.7

%

 

$

7,097

 

 

 

14.5

%

 

 

2.0

%

- Retail

 

 

4

 

 

 

16.7

 

 

 

4.4

 

 

 

5,600

 

 

 

11.4

 

 

 

3.6

 

- Industrial

 

 

-

 

 

 

0.0

 

 

 

0.0

 

 

 

-

 

 

 

0.0

 

 

 

0.0

 

- Mixed use

 

 

-

 

 

 

0.0

 

 

 

0.0

 

 

 

-

 

 

 

0.0

 

 

 

0.0

 

- Office

 

 

-

 

 

 

0.0

 

 

 

0.0

 

 

 

-

 

 

 

0.0

 

 

 

0.0

 

- Multifamily

 

 

-

 

 

 

0.0

 

 

 

0.0

 

 

 

-

 

 

 

0.0

 

 

 

0.0

 

- Other

 

 

2

 

 

 

8.3

 

 

 

3.7

 

 

 

1,497

 

 

 

3.1

 

 

 

2.9

 

Hotel / motel

 

 

10

 

 

 

41.7

 

 

 

5.2

 

 

 

32,191

 

 

 

65.6

 

 

 

20.1

 

Gas station

 

 

-

 

 

 

0.0

 

 

 

0.0

 

 

 

-

 

 

 

0.0

 

 

 

0.0

 

Wholesale

 

 

-

 

 

 

0.0

 

 

 

0.0

 

 

 

-

 

 

 

0.0

 

 

 

0.0

 

Food services / restaurant

 

 

4

 

 

 

16.7

 

 

 

1.4

 

 

 

4,693

 

 

 

9.6

 

 

 

11.6

 

Car washes

 

 

2

 

 

 

8.3

 

 

 

3.8

 

 

 

3,954

 

 

 

8.1

 

 

 

10.1

 

Laundry services

 

 

1

 

 

 

4.2

 

 

 

1.2

 

 

 

329

 

 

 

0.7

 

 

 

1.6

 

Church

 

 

1

 

 

 

4.2

 

 

 

4.3

 

 

 

786

 

 

 

1.6

 

 

 

5.6

 

Educational service

 

 

-

 

 

 

0.0

 

 

 

0.0

 

 

 

-

 

 

 

0.0

 

 

 

0.0

 

Other

 

 

-

 

 

 

0.0

 

 

 

0.0

 

 

 

-

 

 

 

0.0

 

 

 

0.0

 

Total

 

 

24

 

 

 

100.0

%

 

 

1.2

%

 

$

49,050

 

 

 

100.0

%

 

 

4.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Number of accounts and balance information were as of September 30, 2020.

 

 

 

 

 

 

 

 

 

 

 

Loan Deferment Summary by Loan Type

 

As of September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Number of accounts

 

 

Loan balance

 

Loan Type

 

Number of accounts

 

 

% of deferment

 

 

% of total loans

 

 

Balance

 

 

% of deferment

 

 

% of total loans

 

Real estate loans

 

 

18

 

 

 

42.9

%

 

 

5.1

%

 

$

43,806

 

 

 

77.0

%

 

 

6.8

%

C & I loans

 

 

6

 

 

 

14.3

 

 

 

3.0

 

 

 

5,244

 

 

 

9.2

 

 

 

5.7

 

Loans, excluding home mortgage and consumer loans

 

 

24

 

 

 

57.1

 

 

 

1.2

 

 

 

49,050