Exhibit 99.1

 

Bridgewater Bancshares, Inc. Announces Earnings With Third Quarter 2018 Net Income up 38.2% Over Third Quarter 2017

 

Bridgewater Bancshares, Inc. (Nasdaq: BWB) (the Company), the parent company of Bridgewater Bank (the Bank), today announced net income of $6.5 million for the third quarter of 2018, a 38.2% increase over net income of $4.7 million for the third quarter of 2017. Net income per diluted common share for the third quarter of 2018 was $0.21, a 12.5% increase, compared to $0.19 per diluted common share for the same period in 2017.

 

“We had another strong quarter and I could not be more pleased with the results.” says Jerry Baack, Chairman, Chief Executive Officer, and President.  “Our third quarter results demonstrate strong organic growth on both sides of the balance sheet, which is supported by our continued investments in our people and infrastructure.  We look to finish this milestone year by focusing on the expansion of our operations into the St. Paul market, as well as remaining active in attracting and onboarding displaced clients and personnel from recent M&A dislocation in our market.”

 

THIRD QUARTER 2018 FINANCIAL RESULTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

Diluted

 

 

 

Tangible book

ROA

 

ROE

    

Earnings per share

    

Earnings per share

    

Efficiency ratio (1)

    

value per share (1)

1.41%

 

12.28%

 

$

0.22

 

$

0.21

 

42.7%

 

$

6.89

 

 

 

 

 

 

 

 

 

 

 

 

 

 


(1)

Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details.

 

Third Quarter 2018 Highlights

 

·

Annualized return on average assets (ROA) and return on average common equity (ROE) for the third quarter of 2018 were 1.41% and 12.28%, respectively, compared to annualized ROA and ROE of 1.23% and 14.07%, respectively, for the third quarter of 2017.

 

·

Net income was $6.5 million for the third quarter of 2018 compared to $4.7 million for the third quarter of 2017, an increase of 38.2%.

 

·

Diluted earnings per common share for the third quarter of 2018 were $0.21, compared to $0.19 for the third quarter of 2017.  

 

·

Gross loans increased $328.0 million to $1.60 billion at the end of the third quarter of 2018 compared to $1.27 billion as of the same time last year, an increase of 25.8%.

 

·

Nonperforming assets to total assets decreased to 0.04%, compared to 0.13% in the third quarter of 2017.

 

 

 

 

Page 1 of 11


 

Key Financial Measures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the Three Months Ended

 

 

As of and for the Nine Months Ended

 

 

 

September 30, 

 

September 30, 

 

 

September 30, 

 

September 30, 

 

 

    

2018

    

2017

 

    

2018

    

2017

 

Per Common Share Data (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Share

 

$

0.22

 

$

0.19

 

 

$

0.67

 

$

0.55

 

Diluted Earnings Per Share

 

 

0.21

 

 

0.19

 

 

 

0.66

 

 

0.55

 

Book Value Per Share

 

 

7.01

 

 

5.43

 

 

 

 

 

 

 

 

Tangible Book Value Per Share (2)

 

 

6.89

 

 

5.27

 

 

 

 

 

 

 

 

Basic Weighted Average Shares Outstanding

 

 

30,059,374

 

 

24,600,731

 

 

 

28,640,601

 

 

24,593,524

 

Diluted Weighted Average Shares Outstanding

 

 

30,489,648

 

 

24,819,939

 

 

 

29,070,876

 

 

24,812,732

 

Shares Outstanding at Period End

 

 

30,059,374

 

 

24,629,861

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Performance Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Average Assets (Annualized)

 

 

1.41

%  

 

1.23

%

 

 

1.49

%  

 

1.29

%

Return on Average Common Equity (Annualized)

 

 

12.28

 

 

14.07

 

 

 

13.70

 

 

14.44

 

Return on Average Tangible Common Equity (Annualized) (2)

 

 

12.51

 

 

14.50

 

 

 

13.99

 

 

14.91

 

Yield on Interest Earning Assets

 

 

4.92

 

 

4.77

 

 

 

4.85

 

 

4.74

 

Yield on Total Loans, Gross

 

 

5.25

 

 

5.13

 

 

 

5.22

 

 

5.08

 

Cost of Interest Bearing Liabilities

 

 

1.73

 

 

1.24

 

 

 

1.54

 

 

1.15

 

Cost of Total Deposits

 

 

1.19

 

 

0.81

 

 

 

1.05

 

 

0.78

 

Net Interest Margin (3)

 

 

3.71

 

 

3.89

 

 

 

3.76

 

 

3.93

 

Efficiency Ratio (2)

 

 

42.7

 

 

40.3

 

 

 

41.5

 

 

39.9

 

Noninterest Expense to Average Assets (Annualized)

 

 

1.64

 

 

1.61

 

 

 

1.60

 

 

1.58

 

Loan to Deposit Ratio

 

 

108.2

 

 

98.2

 

 

 

 

 

 

 

 

Core Deposits to Total Deposits

 

 

76.6

 

 

76.6

 

 

 

 

 

 

 

 

Tangible Common Equity to Tangible Assets (2)

 

 

11.01

 

 

8.36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios (Bank Only)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Leverage Ratio

 

 

11.16

%  

 

10.12

%  

 

 

 

 

 

 

 

Tier 1 Risk-based Capital Ratio

 

 

11.82

 

 

11.92

 

 

 

 

 

 

 

 

Total Risk-based Capital Ratio

 

 

12.95

 

 

13.14

 

 

 

 

 

 

 

 


(1)

Includes shares of common stock and non-voting common stock.

(2)

Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details.

(3)

Amounts calculated on a tax-equivalent basis using the statutory federal tax rate of 21% for 2018 and 35% for 2017.

 

Page 2 of 11


 

Selected Financial Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 

 

September 30, 

 

 

 

 

(dollars in thousands)

    

2018

    

2017

 

% Change

 

 

Selected Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

1,885,793

 

$

1,556,665

 

21.1

%

 

Total Loans, Gross

 

 

1,599,964

 

 

1,271,962

 

25.8

 

 

Allowance for Loan Losses

 

 

18,949

 

 

15,219

 

24.5

 

 

Goodwill and Other Intangibles

 

 

3,726

 

 

3,916

 

(4.9)

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

1,479,088

 

 

1,294,748

 

14.2

 

 

Tangible Common Equity (1)

 

 

207,126

 

 

129,759

 

59.6

 

 

Total Shareholders' Equity

 

 

210,852

 

 

133,675

 

57.7

 

 

Average Total Assets - Quarter-to-Date

 

 

1,816,485

 

 

1,505,307

 

20.7

 

 

Average Common Equity - Quarter-to-Date

 

 

208,773

 

 

131,862

 

58.3

 

 


(1)

Represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" for further details.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

 

For the Nine Months Ended

 

 

 

 

 

September 30, 

 

September 30, 

 

 

 

 

September 30, 

 

September 30, 

 

 

 

(dollars in thousands)

 

2018

    

2017

 

% Change

 

 

2018

    

2017

 

% Change

 

Selected Income Statement Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income

 

$

22,136

 

 

17,384

 

27.3

%

 

$

61,238

 

$

47,770

 

28.2

%

Interest Expense

 

 

5,502

 

 

3,323

 

65.6

 

 

 

13,942

 

 

8,446

 

65.1

 

Net Interest Income

 

 

16,634

 

 

14,061

 

18.3

 

 

 

47,296

 

 

39,324

 

20.3

 

Provision for Loan Losses

 

 

1,275

 

 

1,200

 

6.3

 

 

 

2,775

 

 

2,975

 

(6.7)

 

Net Interest Income after Provision for Loan Losses

 

 

15,359

 

 

12,861

 

19.4

 

 

 

44,521

 

 

36,349

 

22.5

 

Noninterest Income

 

 

814

 

 

987

 

(17.5)

 

 

 

1,686

 

 

1,953

 

(13.7)

 

Noninterest Expense

 

 

7,526

 

 

6,109

 

23.2

 

 

 

20,522

 

 

16,634

 

23.4

 

Income Before Income Taxes

 

 

8,647

 

 

7,739

 

11.7

 

 

 

25,685

 

 

21,668

 

18.5

 

Provision for Income Taxes

 

 

2,184

 

 

3,064

 

(28.7)

 

 

 

6,526

 

 

8,113

 

(19.6)

 

Net Income

 

$

6,463

 

$

4,675

 

38.2

 

 

$

19,159

 

$

13,555

 

41.3

 

 

Income Statement 

 

Net Interest Income 

 

Net interest income was $16.6 million for the third quarter of 2018, an increase of $2.6 million, or 18.3%, compared to $14.1 million for the third quarter of 2017. The increase in net interest income was largely attributable to growth in average interest earning assets, which increased by 21.0% to $1.81 billion for the three months ended September 30, 2018, from $1.49 billion for the three months ended September 30, 2017. This increase in average interest earning assets was primarily due to continued organic growth in the loan portfolio.

 

Net interest margin (on a fully tax-equivalent basis) for the third quarter of 2018 was 3.71%, compared to 3.89% for the third quarter of 2017, a decrease of 18 basis points. While net interest margin has benefitted from the repricing of variable-rate loans and the origination of new loans at higher rates, this was offset by increased balances and rates on non-core deposits and borrowings. Furthermore, the new lower statutory federal tax rate reduced the tax equivalent adjustment by six basis points. 

 

Interest income increased $4.8 million, or 27.3%, to $22.1 million for the third quarter of 2018,  compared to $17.4 million for the third quarter of 2017, primarily due to the increase in average loan balances.  The yield on interest earning assets (on a fully tax-equivalent basis) rose to 4.92% in the third quarter of 2018, compared to 4.77% in the third quarter of 2017.  Loan interest income and loan fees remain the primary contributing factors to the increase in yield on interest earning assets, driving the aggregate loan yield 12 basis points higher from 5.13% in the  third quarter of 2017 to 5.25% in the third quarter of 2018.

 

Page 3 of 11


 

Interest expense increased $2.2 million to $5.5 million for the third quarter of 2018,  compared to $3.3 million for the third quarter of 2017, primarily due to increases in interest rates and average balances of both deposits and borrowings. The cost of interest bearing liabilities increased to 1.73% in the third quarter of 2018 from 1.24% in the third quarter of 2017 due to higher costs of both deposits and borrowings compared to the third quarter of 2017.

 

A summary of the Company’s average balances, interest yields and rates, and net interest margin for the three months ended September 30, 2018 and 2017 is as follows:

 

Consolidated Average Balances, Interest Yields and Rates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

September 30, 2018

 

September 30, 2017

 

 

 

Average

 

Interest

 

Yield/

 

Average

 

Interest

 

Yield/

 

 

    

Balance

    

& Fees

    

Rate

    

Balance

    

& Fees

    

Rate

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Investments

 

$

23,822

 

$

72

 

1.20

%

$

40,480

 

$

110

 

1.08

%

Investment Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable Investment Securities

 

 

132,197

 

 

839

 

2.52

 

 

102,592

 

 

491

 

1.90

 

Tax-Exempt Investment Securities (1)

 

 

116,042

 

 

1,204

 

4.12

 

 

130,772

 

 

1,610

 

4.88

 

Total Investment Securities

 

 

248,239

 

 

2,043

 

3.27

 

 

233,364

 

 

2,101

 

3.57

 

Loans (2)

 

 

1,526,765

 

 

20,207

 

5.25

 

 

1,214,501

 

 

15,707

 

5.13

 

Federal Home Loan Bank Stock

 

 

6,619

 

 

67

 

4.02

 

 

3,772

 

 

29

 

3.05

 

Total Interest Earning Assets

 

 

1,805,445

 

 

22,389

 

4.92

%

 

1,492,117

 

 

17,947

 

4.77

%

Noninterest Earning Assets

 

 

11,040

 

 

 

 

 

 

 

13,190

 

 

 

 

 

 

Total Assets

 

$

1,816,485

 

 

 

 

 

 

$

1,505,307

 

 

 

 

 

 

Interest Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Bearing Transaction Deposits

 

 

171,923

 

 

165

 

0.38

%

 

178,074

 

 

97

 

0.22

%

Savings and Money Market Deposits

 

 

398,092

 

 

1,373

 

1.37

 

 

302,885

 

 

619

 

0.81

 

Time Deposits

 

 

295,320

 

 

1,490

 

2.00

 

 

288,782

 

 

1,117

 

1.53

 

Brokered Deposits

 

 

241,355

 

 

1,294

 

2.13

 

 

193,587

 

 

758

 

1.55

 

Federal Funds Purchased

 

 

27,391

 

 

147

 

2.13

 

 

3,420

 

 

10

 

1.16

 

Notes Payable

 

 

15,500

 

 

144

 

3.69

 

 

17,500

 

 

162

 

3.67

 

FHLB Advances

 

 

89,652

 

 

488

 

2.16

 

 

53,217

 

 

212

 

1.58

 

Subordinated Debentures

 

 

24,595

 

 

401

 

6.47

 

 

21,562

 

 

348

 

6.40

 

Total Interest Bearing Liabilities

 

 

1,263,828

 

 

5,502

 

1.73

%

 

1,059,027

 

 

3,323

 

1.24

%

Noninterest Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Bearing Transaction Deposits

 

 

335,483

 

 

 

 

 

 

 

307,361

 

 

 

 

 

 

Other Noninterest Bearing Liabilities

 

 

8,401

 

 

 

 

 

 

 

7,057

 

 

 

 

 

 

Total Noninterest Bearing Liabilities

 

 

343,884

 

 

 

 

 

 

 

314,418

 

 

 

 

 

 

Shareholders' Equity

 

 

208,773

 

 

 

 

 

 

 

131,862

 

 

 

 

 

 

Total Liabilities and Shareholders' Equity

 

$

1,816,485

 

 

 

 

 

 

$

1,505,307

 

 

 

 

 

 

Net Interest Income / Interest Rate Spread

 

 

 

 

 

16,887

 

3.19

%

 

 

 

 

14,624

 

3.53

%

Net Interest Margin (3)

 

 

 

 

 

 

 

3.71

%

 

 

 

 

 

 

3.89

%

Taxable Equivalent Adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax-Exempt Investment Securities

 

 

 

 

 

(253)

 

 

 

 

 

 

 

(563)

 

 

 

Net Interest Income

 

 

 

 

$

16,634

 

 

 

 

 

 

$

14,061

 

 

 


(1)

Interest income and average rates for tax-exempt investment securities are presented on a tax-equivalent basis, assuming a statutory federal income tax rate of 21% in 2018 and 35% in 2017.

(2)

Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.

(3)

Net interest margin includes the tax equivalent adjustment and represents the annualized results of: (i) the difference between interest income on interest earning assets and the interest expense on interest bearing liabilities, divided by (ii) average interest earning assets for the period.

 

 

Provision for Loan Losses 

 

The provision for loan losses was $1.3 million for the third quarter of 2018, an increase of $75,000 compared to the provision for loan losses of $1.2 million for the third quarter of 2017. The provision increased in the third quarter of 2018 primarily due to higher loan growth in comparison to the third quarter of 2017. 

 

Page 4 of 11


 

A reconciliation of the Company’s allowance for loan losses for the three and nine month periods ended September 30, 2018 and 2017 is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30, 

 

September 30, 

(dollars in thousands)

    

2018

    

2017

    

2018

    

2017

Balance at Beginning of Period

 

$

17,666

 

$

14,053

 

$

16,502

 

$

12,333

Provision for Loan Losses

 

 

1,275

 

 

1,200

 

 

2,775

 

 

2,975

Charge-offs

 

 

(11)

 

 

(47)

 

 

(384)

 

 

(130)

Recoveries

 

 

19

 

 

13

 

 

56

 

 

41

Balance at September 30, 

 

$

18,949

 

$

15,219

 

$

18,949

 

$

15,219

 

Noninterest Income

 

Noninterest income was $814,000 for the third quarter of 2018, a decrease of $173,000 from $987,000 for the third quarter of 2017.  

 

The following table presents the major components of noninterest income for the three and nine month periods ended September 30, 2018, compared to the three and nine month periods ended September 30, 2017:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

Nine Months Ended

 

 

 

 

 

September 30, 

 

Increase/

 

September 30, 

 

Increase/

(dollars in thousands)

    

2018

    

2017

    

(Decrease)

 

2018

    

2017

    

(Decrease)

Noninterest Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer Service Fees

 

$

184

 

$

174

 

$

10

 

$

539

 

$

483

 

$

56

Net Gain (Loss) on Sales of Securities

 

 

(49)

 

 

15

 

 

(64)

 

 

(108)

 

 

(51)

 

 

(57)

Net Gain (Loss) on Sales of Foreclosed Assets

 

 

(88)

 

 

202

 

 

(290)

 

 

(225)

 

 

352

 

 

(577)

Letter of Credit Fees

 

 

447

 

 

387

 

 

60

 

 

814

 

 

634

 

 

180

Debit Card Interchange Fees

 

 

99

 

 

101

 

 

(2)

 

 

287

 

 

293

 

 

(6)

Other Income

 

 

221

 

 

108

 

 

113

 

 

379

 

 

242

 

 

137

Totals

 

$

814

 

$

987

 

$

(173)

 

$

1,686

 

$

1,953

 

$

(267)

 

Noninterest Expense

 

Noninterest expense was $7.5 million for the third quarter of 2018, an increase of $1.4 million, or 23.2% from $6.1 million for the third quarter of 2017. The increase was primarily driven by a $1.2 million increase in salaries and employee benefits as the result of merit increases and increased staff to meet the needs of the Company’s growth. The increase was partially offset by a decrease of $456,000 in professional and consulting fees due to higher expenses incurred in the third quarter of 2017 in contemplation of the initial public offering, in comparison to the third quarter of 2018.  

 

The following table presents the major components of noninterest expense for the three and nine month periods ended September 30, 2018, compared to the three and nine month periods ended September 30, 2017:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

Nine Months Ended

 

 

 

 

 

September 30, 

 

Increase/

 

September 30, 

 

Increase/

(dollars in thousands)

    

2018

    

2017

    

(Decrease)

    

2018

    

2017

    

(Decrease)

Noninterest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and Employee Benefits

 

$

4,910

 

$

3,685

 

$

1,225

 

$

13,534

 

$

9,945

 

$

3,589

Occupancy and Equipment

 

 

596

 

 

570

 

 

26

 

 

1,767

 

 

1,629

 

 

138

FDIC Insurance Assessment

 

 

240

 

 

15

 

 

225

 

 

675

 

 

525

 

 

150

Data Processing

 

 

167

 

 

138

 

 

29

 

 

325

 

 

464

 

 

(139)

Professional and Consulting Fees

 

 

313

 

 

769

 

 

(456)

 

 

836

 

 

1,328

 

 

(492)

Information Technology and Telecommunications

 

 

271

 

 

178

 

 

93

 

 

674

 

 

500

 

 

174

Marketing and Advertising

 

 

347

 

 

206

 

 

141

 

 

911

 

 

736

 

 

175

Intangible Asset Amortization

 

 

48

 

 

48

 

 

 —

 

 

143

 

 

143

 

 

 —

Other Expense

 

 

634

 

 

500

 

 

134

 

 

1,657

 

 

1,364

 

 

293

Totals

 

$

7,526

 

$

6,109

 

$

1,417

 

$

20,522

 

$

16,634

 

$

3,888

 

Full-time equivalent employees increased from 115 at the end of the third quarter of 2017 to 139 at the end of the third quarter of 2018.  The increase includes key strategic hires, particularly in deposit gathering roles, as the Company continues to capitalize on M&A disruption. Despite increased overhead, the Company experienced only a marginal increase in the efficiency ratio, a non-GAAP financial measure. The efficiency ratio was 42.7% for the third quarter of 2018, compared to 40.3% for the third quarter of 2017.

 

Page 5 of 11


 

Income Taxes 

 

The effective combined federal and state income tax rate for the third quarter of 2018 was 25.3%, compared to 39.6% for the third quarter of 2017. The lower effective combined rate was primarily due to the reduction in the federal corporate tax rate from 35% to 21%.

 

Balance Sheet

 

Total assets at September 30, 2018 were $1.89 billion, a  7.6% increase from $1.75 billion at June 30, 2018, and a 21.1% increase from $1.56 billion at September 30, 2017. The increase in total assets was primarily due to organic loan growth. 

 

Total gross loans at September 30, 2018 were $1.60 billion, an increase of $136.6 million, or 9.3%, over total gross loans of $1.46 billion at June 30, 2018, and an increase of $328.0 million, or 25.8%, over total gross loans of $1.27 billion at September 30, 2017.  

 

The following table details the composition of the Company’s loan portfolio, by category, at the dates indicated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2018

 

June 30, 2018

 

March 31, 2018

 

December 31, 2017

 

September 30, 2017

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

 

$

235,502

 

$

204,072

 

$

199,262

 

$

217,753

 

$

192,840

 

Construction and Land Development

 

 

187,919

 

 

164,492

 

 

147,842

 

 

130,586

 

 

119,427

 

Real Estate Mortgage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 - 4 Family Mortgage

 

 

224,124

 

 

213,265

 

 

200,573

 

 

195,707

 

 

187,573

 

Multifamily

 

 

389,511

 

 

340,888

 

 

332,770

 

 

317,872

 

 

286,191

 

CRE Owner Occupied

 

 

65,905

 

 

65,891

 

 

67,512

 

 

65,909

 

 

59,208

 

CRE Nonowner Occupied

 

 

492,499

 

 

470,437

 

 

453,498

 

 

415,034

 

 

422,269

 

Total Real Estate Mortgage Loans

 

 

1,172,039

 

 

1,090,481

 

 

1,054,353

 

 

994,522

 

 

955,241

 

Consumer and Other

 

 

4,504

 

 

4,275

 

 

3,963

 

 

4,252

 

 

4,454

 

Total Loans, Gross

 

 

1,599,964

 

 

1,463,320

 

 

1,405,420

 

 

1,347,113

 

 

1,271,962

 

Allowance for Loan Losses

 

 

(18,949)

 

 

(17,666)

 

 

(17,121)

 

 

(16,502)

 

 

(15,219)

 

Net Deferred Loan Fees

 

 

(4,308)

 

 

(4,058)

 

 

(4,130)

 

 

(4,104)

 

 

(4,128)

 

Total Loans, Net

 

$

1,576,707

 

$

1,441,596

 

$

1,384,169

 

$

1,326,507

 

$

1,252,615

 

 

Total deposits at September 30, 2018 were $1.48 billion, an increase of $64.4 million, or 4.6%, over total deposits of $1.41 billion at June 30, 2018, and an increase of $184.3 million, or 14.2%, over total deposits of $1.29 billion at September 30, 2017.  

 

The following table details the composition of the Company’s deposit portfolio, by category, at the dates indicated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2018

 

June 30, 2018

 

March 31, 2018

 

December 31, 2017

 

September 30, 2017

 

 

(dollars in thousands)

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Bearing Transaction Deposits

 

$

342,292

 

$

323,320

 

$

315,036

 

$

292,539

 

$

303,824

 

 

Interest Bearing Transaction Deposits

 

 

175,455

 

 

178,045

 

 

164,899

 

 

177,292

 

 

173,947

 

 

Savings and Money Market Deposits

 

 

416,140

 

 

381,942

 

 

339,541

 

 

369,942

 

 

330,935

 

 

Time Deposits

 

 

290,887

 

 

300,701

 

 

304,743

 

 

292,096

 

 

289,084

 

 

Brokered Deposits

 

 

254,314

 

 

230,683

 

 

228,817

 

 

207,481

 

 

196,958

 

 

Total Deposits

 

$

1,479,088

 

$

1,414,691

 

$

1,353,036

 

$

1,339,350

 

$

1,294,748

 

 

 

Total shareholders’ equity at September 30, 2018 was $210.9 million, an increase of $4.9 million, or 2.4%, over total shareholders’ equity of $205.9 million at June 30, 2018, and an increase of $77.2 million, or 57.7%, over total shareholders’ equity of $133.7 million at September 30, 2017. The increase in total shareholders’ equity for the three months ended September 30, 2018 compared to the three months ended June 30, 2018, was primarily due to net income retained. The increase in total shareholders’ equity for the nine months ended September 30, 2018 compared to the nine months ended September 30, 2017, was primarily due to capital raised in the initial public offering. 

 

Asset Quality

 

Asset quality metrics for the Company remained strong at September 30, 2018. Annualized net charge-offs as a percent of average loans for the third quarter of 2018 were 0.00%, compared to 0.10% for the second quarter of 2018, and 0.01% for the third quarter of 2017. At September 30, 2018, the Company’s nonperforming assets, which include nonaccrual loans and other real estate owned, were $718,000, or 0.04% of total assets, as compared to $894,000,  or 0.05% of total assets at June 30, 2018, and $2.0 million, or 0.13% of total assets at September 30, 2017. 

 

Page 6 of 11