EXHIBIT 99.1

Two River Bancorp Reports Record 2018 Fourth Quarter  and Annual Financial Results

TINTON FALLS, N.J., Jan. 29, 2019 (GLOBE NEWSWIRE) --

Two River Bancorp (Nasdaq: TRCB) (the "Company"), the parent company of Two River Community Bank (the “Bank"), today reported financial results for the fourth quarter and twelve months ended December 31, 2018, highlighted by record net income, strong loan and deposit growth, and a 9.5% increase in tangible book value per share(1) from the prior year.

2018 Fourth Quarter Financial Highlights
(comparisons to respective prior year’s period)

  • Net income increased to $3.0 million, or $0.35 per diluted share, from $335,000, or $0.04 per diluted share.  The 2017 fourth quarter included a charge to income tax expense of $1.78 million, or $0.21 per diluted share, as part of the Tax Cuts and Jobs Act. This charge impacted several metrics throughout the prior year’s quarter and annual results. 
  • Excluding this one-time 2017 charge, 2018 fourth quarter net income increased 44.0% from 2017 fourth quarter net income of $2.1 million, or $0.24 per diluted share.
  • Return on average assets of 1.10%, up from 0.13%
  • Return on average equity of 10.52%, up from 1.24%
  • Net interest income increased 8.5% to $9.3 million
  • Net interest margin remained unchanged at 3.56%
  • Efficiency ratio(2) was 60.69% compared to 59.96%

2018 Annual / Year-End Financial Highlights
(comparisons to prior year)

  • Net income increased 72.3% to a record $11.2 million, or $1.29 per diluted share. Net income for 2017 was impacted by the above-mentioned charge to income tax expense of $1.78 million, or $0.21 per diluted share.
  • Excluding the one-time 2017 charge, 2018 net income increased 35.3% from 2017 net income of $8.3 million, or $0.96 per diluted share.
  • Return on average assets of 1.04%, up from 0.66%
  • Return on average equity of 10.07%, up from 6.22%
  • Net interest income increased 11.0% to $36.1 million
  • Net interest margin improved to 3.58%
  • Efficiency ratio(2) improved to 61.66% compared to 63.02%
  • Total loans at December 31, 2018 were $921.3 million, an increase of $70.4 million, or 8.3%
  • Total deposits at December 31, 2018 were $917.4 million, an increase of $55.8 million, or 6.5%
  • Total assets increased to a record $1.096 billion, or 5.4%, compared to $1.040 billion
  • Tangible book value per share(1) increased to $11.43, compared to $10.44

(1)  Non-GAAP Financial Information. See “Reconciliation of Non-GAAP Financial Measures” at end of release.  
(2)  Efficiency ratio represents the ratio of non-interest expense to the sum of net interest income and non-interest income.

Management Commentary
William D. Moss, Chairman, President and CEO, stated, “2018 was an exceptional year for the Company. We reported solid bottom line improvement and book value appreciation, while still reinvesting in our infrastructure through the implementation of a new banking platform during the third quarter. Loan activity was strong during the fourth quarter, and we achieved an 8.3% growth in total loans for the year, despite an unanticipated high level of payoffs. This growth is due to solid, fundamental lending in the commercial real estate, construction and residential sectors, and our pipeline continues to remain strong as we enter 2019. Deposits grew by 6.5% in 2018, despite a highly competitive environment. Looking forward into 2019, we believe the initiatives put in place over the past several months have the Company poised to continue delivering solid bottom line improvements and continued returns for our shareholders.”

Dividend Information
On January 16, 2019, the Company’s Board of Directors declared a quarterly cash dividend of $0.055 per share, payable on February 28, 2019 to shareholders of record at the close of business on February 6, 2019. This marks the Company’s 24th consecutive quarterly cash dividend payment.

Key Quarterly Performance Metrics

  4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. 12 Mo. Ended  12 Mo. Ended
 2018 2018 2018 2018 2017 12/31/2018 12/31/2017
Net Income (in thousands) $3,046  $2,834  $2,650  $2,676  
$335
  $11,206   $6,502 
Earnings per Common Share – Diluted $0.35  $0.33  $0.30  $0.31  $0.04  $1.29  $0.75 
Return on Average Assets 1.10% 1.04% 1.00% 1.04% 0.13% 1.04% 0.66%
Return on Average Tangible Assets(1) 1.11% 1.06% 1.02% 1.06% 0.13% 1.06% 0.67%
Return on Average Equity 10.52% 9.98% 9.67% 10.08% 1.24% 10.07% 6.22%
Return on Average Tangible Equity(1) 12.49% 11.90% 11.57% 12.12% 1.49% 12.03% 7.52%
Net Interest Margin 3.56% 3.55% 3.59% 3.63% 3.56% 3.58% 3.53%
Efficiency Ratio(2) 60.69% 61.78% 62.59% 61.59% 59.96% 61.66% 63.02%
Non-Performing Assets to Total Assets 0.18% 0.18% 0.18% 0.19% 0.20% 0.18% 0.20%
Allowance as a % of Loans 1.24% 1.26% 1.26% 1.26% 1.25% 1.24% 1.25%
  
(1) Non-GAAP Financial Information. See “Reconciliation of Non-GAAP Financial Measures” at end of release.
(2) Efficiency ratio represents the ratio of non-interest expense to the sum of net interest income and non-interest income.
 

Loan Composition

The components of the Company’s loan portfolio at December 31, 2018 and December 31, 2017 are as follows:  

  (in thousands)  
  December 31,
2018
  December 31,
2017
 % Change  
Commercial and industrial $  109,362  $  101,371 7.9 %
Real estate – construction  144,865   118,094 22.7 %
Real estate – commercial  552,549   537,733 2.8 %
Real estate – residential  84,123   64,238 31.0 %
Consumer  31,144   30,203 3.1 %
Unearned fees  (742)  (765)(3.0)%
   921,301   850,874 8.3 %
Allowance for loan losses  (11,398)  (10,668)6.8 %
Net Loans $  909,903  $  840,206 8.3 %


Deposit Composition

The components of the Company’s deposits at December 31, 2018 and December 31, 2017 are as follows:  

  (in thousands)   
  December 31,
2018
  December 31,
 2017
 % Change  
Non-interest-bearing $  176,655  $  167,297 5.6 %
NOW accounts  193,347   232,673 (16.9)%
Savings deposits  258,666   242,448 6.7 %
Money market deposits  43,936   59,818 (26.6)%
Listed service CD’s  39,807   44,436 (10.4)%
Time deposits / IRA  130,863   74,183 76.4 %
Wholesale deposits  74,080   40,702 82.0 %
  Total Deposits $  917,354  $  861,557 6.5 %

2018 Fourth Quarter Financial Review

Net Income
Net income for the three months ended December 31, 2018 increased to $3.0 million, or $0.35 per diluted common share, compared to $335,000, or $0.04 per diluted common share, for the same period last year. The increase in net income was largely the result of the aforementioned $1.8 million, or $0.21 per diluted share, charge to income tax expense in the fourth quarter of 2017, resulting from the write-down of the Company’s deferred tax asset from 34% to 21% (the Company’s new corporate tax rate). Excluding this charge, 2018 fourth quarter net income increased 44.0% from 2017 fourth quarter net income of $2.1 million, or $0.24 per diluted share. Additionally, increases were achieved in both net interest and non-interest income coupled with both a lower loan loss provision and Federal corporate income tax rate.

On a linked quarter basis, fourth quarter 2018 net income increased 7.5% compared to the third quarter of 2018, primarily due to higher net interest income, a lower loan loss provision and a decrease in non-interest expenses.

Net Interest Income
Net interest income for the quarter ended December 31, 2018 was $9.3 million, an increase of 8.5% compared to $8.5 million in the corresponding prior year period. This was largely due to an increase of $79.9 million, or 8.4%, in average interest-earning assets, primarily attributable to growth in the loan portfolio.

On a linked quarter basis, net interest income increased $150,000, or 1.6%, from $9.1 million.

Net Interest Margin
Despite higher costs of funds, the Company reported a net interest margin of 3.56% for the fourth quarter of 2018, compared to 3.55% in the third quarter of 2018 and 3.56% reported for the fourth quarter of 2017. 

Non-Interest Income
Non-interest income for the quarter ended December 31, 2018 increased slightly to $1.4 million, compared to $1.3 million in the corresponding prior year period. This was largely due to higher other loan fees, primarily due to loan prepayment fees, and higher gains from the sale of SBA loans, partially offset by lower residential mortgage banking revenue and service fees on deposit accounts.

On a linked quarter basis, non-interest income remained largely unchanged from the third quarter of 2018, as higher residential mortgage banking revenue and gains from the sale of SBA loans were offset by lower loan prepayment fees.

Non-Interest Expense
Non-interest expense for the quarter ended December 31, 2018 totaled $6.4 million, an increase of $528,000, or 8.9%, from the $5.9 million reported in the corresponding period in 2017. This was primarily due to salary increases, new hires within the lending and deposit teams, and higher data processing expenses, mainly due to one-time final costs resulting from the implementation of the new banking platform. The Company’s efficiency ratio was 60.69% for the quarter, compared to 59.96% for the same period in 2017.

On a linked quarter basis, non-interest expense remained largely unchanged.

Provision for Loan Losses
During the quarter, no provision for loan losses was recorded, compared to $675,000 in the same prior year period, largely due to a decline in the Company’s historical loan loss rates. The Company also had $8,000 in net loan recoveries during the quarter, compared to $230,000 in net loan charge-offs during the same period last year.  

2018 Annual Financial Review

Net Income
Net income for the year ended December 31, 2018 increased 72.3% to $11.2 million, or $1.29 per diluted share, compared to $6.5 million, or $0.75 per diluted share, in the prior year. Excluding the effect of the previously mentioned deferred tax asset write-down in 2017, net income increased 35.3% for the twelve months ended December 31, 2018. This increase was largely due to both higher net interest and non-interest income and a lower loan loss provision coupled with a lower Federal corporate income tax rate.

For the full year of 2018, the Company recorded a $216,000 tax benefit related to the accounting treatment of equity-based compensation, as compared to a benefit of $191,000 for the same period last year.

At the present time, the Company is anticipating a 2019 effective tax rate of 28%.

Net Interest Income
For the year ended December 31, 2018, net interest income increased 11.0% to $36.1 million from $32.5 million in the prior year. This was largely due to an increase of $87.5 million, or 9.5%, in average interest-earning assets, primarily attributable to growth in the loan portfolio.

Net Interest Margin
The net interest margin for the twelve months ended December 31, 2018 increased to 3.58%, compared to 3.53% in the prior year, primarily due to higher yielding interest-earning assets coupled with an increase in average non-interest-bearing demand deposits, which were partially offset by higher cost of funds.

Non-Interest Income
For the year ended December 31, 2018, non-interest income increased $72,000, or 1.3%, to $5.5 million from the prior year. This was largely due to higher gains on the sale of SBA loans, service fees on deposit accounts and other loan fees. Mortgage banking revenues were $1.3 million during 2018, compared to $1.6 million in the prior year. The slowdown in residential lending activity was mainly due to the change in the mix of mortgage originations to more portfolio adjustable rate products versus saleable fixed rate mortgages, coupled with higher interest rates and tighter competition.

Non-Interest Expense
For the year ended December 31, 2018, non-interest expense increased $1.7 million, or 7.3%, to $25.7 million compared to the same prior year period. The Company’s efficiency ratio for the year ended December 31, 2018 improved to 61.66%, compared to 63.02% for the same period in 2017.

Provision for Loan Losses
For the year ended December 31, 2018, a provision for loan losses of $775,000 was expensed, compared to $1,530,000 in the prior year, with the majority of the provision due to loan growth. The Company also had $45,000 in net loan charge-offs during the year, compared to $427,000 during the same period last year.

Allowance for Loan Losses
As of December 31, 2018, the Company's allowance for loan losses was $11.4 million, compared to $10.7 million as of December 31, 2017. The loss allowance as a percentage of total loans was 1.24% at December 31, 2018 compared to 1.25% at December 31, 2017. 

Financial Condition / Balance Sheet

At December 31, 2018, the Company maintained capital ratios that were in excess of regulatory standards for well capitalized institutions. The Company's Tier 1 capital to average assets ratio was 9.10%, its common equity Tier 1 to risk weighted assets ratio was 10.14%, its Tier 1 capital to risk weighted assets ratio was 10.14%, and its total capital to risk weighted assets ratio was 12.34%.

Total assets as of December 31, 2018 were $1.096 billion, compared to $1.040 billion at December 31, 2017.

Total loans as of December 31, 2018 were $921.3 million, compared to $850.9 million at December 31, 2017.

Total deposits as of December 31, 2018 were $917.4 million, compared to $861.6 million as of December 31, 2017. Core checking deposits at December 31, 2018 were $370.0 million, compared to $400.0 million at December 31, 2017. Our balances at year-end 2017 included a high level of prepaid real estate taxes resulting from the Tax Cuts and Jobs Act. The Company continues to focus on building core checking account deposit relationships, which can vary from quarter to quarter due to seasonality in municipal depository relationships.

Asset Quality
The Company's non-performing assets were unchanged at $2.0 million at both December 31, 2018 and September 30, 2018, compared to $2.1 million at December 31, 2017. Non-performing assets to total assets was 0.18% at both December 31, 2018 and September 30, 2018, compared to 0.20% at December 31, 2017.

Non-accrual loans were $1.4 million at both December 31, 2018 and September 30, 2018 and $2.1 million at December 31, 2017. OREO was $585,000 at December 31, 2018 and September 30, 2018, compared to no OREO at December 31, 2017. 

Troubled debt restructured loan balances amounted to $7.7 million at December 31, 2018, with all but $877,000 performing. This compared to $6.6 million at September 30, 2018 and $7.1 million at December 31, 2017.

About the Company
Two River Bancorp is the holding company for Two River Community Bank, which is headquartered in Tinton Falls, New Jersey. Two River Community Bank operates 13 branches along with two loan production offices throughout Monmouth, Union, and Ocean Counties, New Jersey. More information about Two River Community Bank and Two River Bancorp is available at www.tworiver.bank.

The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management's confidence and strategies and management's current views and expectations about new and existing programs and products, relationships, opportunities, technology and market conditions. These statements may be identified by such forward-looking terminology as "continue," "expect," "look," "believe," "anticipate," "may," "will," "should," "projects," "strategy," or similar statements. Actual results may differ materially from such forward-looking statements, and no reliance should be placed on any forward-looking statement. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to, unanticipated changes in the financial markets and the direction of interest rates; volatility in earnings due to certain financial assets and liabilities held at fair value; competition levels; loan and investment prepayments differing from our assumptions; insufficient allowance for credit losses; a higher level of loan charge-offs and delinquencies than anticipated; material adverse changes in our operations or earnings; a decline in the economy in our market areas; changes in relationships with major customers; changes in effective income tax rates; higher or lower cash flow levels than anticipated; inability to hire or retain qualified employees; a decline in the levels of deposits or loss of alternate funding sources; a decrease in loan origination volume or an inability to close loans currently in the pipeline; changes in laws and regulations; adoption, interpretation and implementation of accounting pronouncements; operational risks, including the risk of fraud by employees, customers or outsiders; unanticipated effects of our new banking platform; and the inability to successfully implement or expand new lines of business or new products and services. For a list of other factors which would affect our results, see the Company's filings with the Securities and Exchange Commission, including those risk factors identified in the "Risk Factor" section and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2017. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company assumes no obligation for updating any such forward-looking statements at any time, except as required by law.


  
Investor Contact: Media Contact:
Adam Prior, Senior Vice President Adam Cadmus, Marketing Director
The Equity Group Inc. Two River Community Bank
Phone: (212) 836-9606Phone: (732) 982-2167
Email: aprior@equityny.comEmail: acadmus@tworiverbank.com



 
 
TWO RIVER BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
For the Three Months and Twelve Months Ended December 31, 2018 and 2017
(in thousands, except per share data)
      
  Three Months Ended
December 31,
 Twelve Months Ended
December 31,
 

 
   2018   2017  2018   2017 
INTEREST INCOME:           
Loans, including fees $  11,006   $  9,438 $  41,726  $  35,801 
Securities:           
 Taxable  314    273   1,175   988 
 Tax-exempt  266    270   1,108   1,101 
Interest-bearing deposits  190    93   483   350 
Total Interest Income  11,776   10,074  44,492   38,240 
INTEREST EXPENSE:           
Deposits  2,231   1,193  7,154   4,363 
Securities sold under agreements to repurchase  15   16  58   66 
Federal Home Loan Bank ("FHLB") and other borrowings  112   171  494   620 
Subordinated debt  165   165  660   658 
Total Interest Expense  2,523   1,545  8,366   5,707 
Net Interest Income  9,253   8,529  36,126   32,533 
PROVISION FOR LOAN LOSSES  -   675  775   1,530 
Net Interest Income after Provision for Loan Losses  9,253   7,854  35,351   31,003 
NON-INTEREST INCOME:           
Service fees on deposit accounts  167   237  880   772 
Mortgage banking  302   325  1,288   1,583 
Other loan fees  276   186  902   588 
Earnings from investment in bank owned life insurance  130   133  525   544 
Gain on sale of SBA loans  276   235  1,197   1,052 
Other income  219   227  739   920 
Total Non-Interest Income  1,370     1,343  5,531   5,459 
NON-INTEREST EXPENSES:           
Salaries and employee benefits  4,022   3,492  15,941   14,046 
Occupancy and equipment  1,048   1,026  4,147   4,241 
Professional  343   395  1,603   1,497 
Insurance  62     58  242   216 
FDIC insurance and assessments  123   113  497   467 
Advertising  80   105  360   450 
Data processing  228    147  738   553 
Outside services fees  75    126  325   473 
OREO expenses, impairment and sales, net  13   4  5   48 
Loan workout expenses  20   59  144   233 
Other operating  433    394  1,684   1,718 
Total Non-Interest Expenses  6,447    5,919  25,686   23,942 
   Income before Income Taxes  4,176    3,278  15,196   12,520 
       Income Tax Expense  1,130    2,943  3,990   6,018 
Net Income  $  3,046  $  335 $  11,206  $  6,502 
Earnings Per Common Share:           
Basic $  0.36  $  0.04 $  1.32  $  0.78 
Diluted $  0.35  $  0.04 $  1.29  $  0.75 
Weighted average common shares outstanding:           
Basic  8,536   8,420  8,508   8,388 
Diluted  8,693   8,673  8,702   8,658 
                



 
TWO RIVER BANCORP
CONSOLIDATED BALANCE SHEETS (Unaudited)
(in thousands, except share data)
     
 December 31, December 31, 
 2018 2017 
ASSETS       
Cash and due from banks$24,067 $29,575 
Interest-bearing deposits in bank  24,059  18,644 
Cash and cash equivalents  48,126  48,219 
        
Securities available for sale  24,407  28,684 
Securities held to maturity  47,455  58,002 
Equity securities  2,451  2,448 
Restricted investments, at cost  6,082  5,430 
Loans held for sale 1,496  2,581 
Loans  921,301  850,874 
Allowance for loan losses  (11,398) (10,668)
Net loans  909,903  840,206 
        
OREO 585  - 
Bank owned life insurance  22,097  21,573 
Premises and equipment, net  5,917  6,239 
Accrued interest receivable  2,583  2,554 
Goodwill  18,109  18,109 
Other assets  7,208  5,753 
        
TOTAL ASSETS$1,096,419 $1,039,798 
       
LIABILITIES       
Deposits:       
Non-interest-bearing$176,655 $167,297 
Interest-bearing 740,699  694,260 
Total Deposits  917,354  861,557 
        
Securities sold under agreements to repurchase  19,402  27,120 
FHLB and other borrowings  22,500  25,800 
Subordinated debt 9,923  9,888 
Accrued interest payable  119  70 
Other liabilities  10,623  8,792 
        
Total Liabilities  979,921  933,227 
        
SHAREHOLDERS' EQUITY       
Preferred stock, no par value; 6,500,000 shares authorized, no shares issued and outstanding  -  - 
Common stock, no par value; 25,000,000 shares authorized;       
 Issued –  8,935,437 and 8,782,124 at December 31, 2018 and 2017, respectively      
 Outstanding –  8,606,992 and 8,470,030 at December 31, 2018 and 2017, respectively 80,481  79,678 
Retained earnings  39,109  29,593 
Treasury stock, at cost; 328,445 and 312,094 shares at December 31, 2018 and 2017, respectively (2,647) (2,396)
Accumulated other comprehensive loss  (445) (304)
Total Shareholders' Equity  116,498  106,571 
        
TOTAL LIABILITIES and SHAREHOLDERS’ EQUITY$1,096,419 $1,039,798 

    

 
 
TWO RIVER BANCORP
Selected Consolidated Financial Data (Unaudited)
 
Selected Consolidated Earnings Data
(in thousands, except per share data)
  Three Months Ended Twelve Months Ended
 Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31,
Selected Consolidated Earnings Data: 2018  2018  2017  2018  2017
Total Interest Income$  11,776 $  11,342 $  10,074 $  44,492 $  38,240
Total Interest Expense 2,523  2,239  1,545  8,366  5,707
Net Interest Income 9,253  9,103  8,529  36,126  32,533
Provision for Loan Losses -  150  675  775  1,530
Net Interest Income after Provision for Loan Losses 9,253  8,953  7,854  35,351  31,003
Other Non-Interest Income 1,370  1,355  1,343  5,531  5,459
Other Non-Interest Expenses 6,447  6,461  5,919  25,686  23,942
Income before Income Taxes 4,176  3,847  3,278  15,196  12,520
Income Tax Expense 1,130  1,013  2,943  3,990  6,018
Net Income$  3,046 $  2,834 $  335 $  11,206 $  6,502
          
Per Common Share Data:         
Basic Earnings$  0.36 $  0.33 $  0.04 $  1.32 $  0.78
Diluted Earnings$  0.35 $  0.33 $  0.04 $  1.29 $  0.75
Book Value$  13.54 $  13.27 $  12.58 $  13.54 $  12.58
Tangible Book Value(1)$  11.43 $  11.16 $  10.44 $  11.43 $  10.44
Average Common Shares Outstanding (in thousands):         
Basic 8,536  8,513  8,420  8,508  8,388
Diluted 8,693  8,700  8,673  8,702  8,658
               

(1) Non-GAAP Financial Information. See “Reconciliation of Non-GAAP Financial Measures” at end of release.

 
 
Selected Period End Balances
(in thousands)
 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, 
  2018  2018  2018  2018  2017 
Total Assets$  1,096,419 $  1,086,299 $  1,055,527 $  1,042,277 $  1,039,798 
Investment Securities and Restricted Stock 80,395  91,296  94,449  96,251  94,564 
Total Loans 921,301  900,895  890,369  872,327  850,874 
Allowance for Loan Losses (11,398) (11,390) (11,201) (10,962) (10,668)
Goodwill and Other Intangible Assets 18,109  18,109  18,109  18,109  18,109 
Total Deposits
 917,354  905,745  880,879  870,904  861,557 
Repurchase Agreements 19,402  22,153  19,878  18,472  27,120 
FHLB and Other Borrowings 22,500  24,500  24,500  24,500  25,800 
Subordinated Debt 9,923  9,914  9,905  9,896  9,888 
Shareholders' Equity 116,498  113,891  111,347  108,980  106,571 
                
                


Asset Quality Data (by Quarter)          
(dollars in thousands)          
 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, 
  2018  2018  2018  2018  2017 
Nonaccrual Loans$  1,390 $  1,390 $  1,930 $  1,972 $  2,070 
OREO 585  585  -  -  - 
Total Non-Performing Assets 1,975  1,975  1,930  1,972  2,070 
           
Troubled Debt Restructured Loans:          
Performing 6,842  5,678  5,831  5,965  6,053 
Non-Performing 877  877  877  878  994 
           
Non-Performing Loans to Total Loans 0.15% 0.15% 0.22% 0.23% 0.24%
Non-Performing Assets to Total Assets 0.18% 0.18% 0.18% 0.19% 0.20%
Allowance as a % of Loans 1.24% 1.26% 1.26% 1.26% 1.25%


      
      
Capital Ratios
  December 31, 2018  December 31, 2017  
      
 CET 1 Capital
to Risk Weighted
Assets Ratio
  Tier 1
Capital
to
Average
Assets
Ratio
  Tier 1
Capital
to Risk
Weighted
Assets Ratio
  Total
Capital
to Risk Weighted
Assets
Ratio
  CET 1 Capital
to Risk Weighted
Assets Ratio
  Tier 1
Capital
to
Average Assets
Ratio
  Tier 1
Capital
to Risk Weighted
Assets Ratio
  Total
Capital to
Risk Weighted
Assets
Ratio
 
               
               
              
Two River Bancorp10.14% 9.10% 10.14% 12.34% 9.68% 8.85% 9.68% 11.93%
Two River Community Bank11.09% 9.95% 11.09% 12.26% 10.66% 9.76% 10.66% 11.82%
"Well capitalized" institution (under prompt corrective action regulations.)*6.50% 5.00% 8.00% 10.00% 6.50% 5.00% 8.00% 10.00%
 
*Applies to Bank only.  For the Company to be “well capitalized,” the Tier 1 Capital to Risk Weighted Assets has to be at least 6.00%.
 
 



Net Loan Charge-offs
(dollars in thousands)
 Three Months Ended 
 

 

Twelve Months Ended
 
 Dec. 31,  Sept. 30,  June 30,  March 31,  Dec. 31,  Dec. 31,  Dec. 31, 
  2018   2018   2018   2018   2017   2018   2017 
Net loan charge-offs (recoveries):                    
  Charge-offs$  -  $  -  $  (13) $  (115) $  (239) $  (128) $  (488)
  Recoveries 8   39   27   9   9   83   61 
Net loan (charge-offs) recoveries$  8  $  39  $  14  $  (106) $  (230) $  (45) $  (427)
Net loan (charge-offs) recoveries to   average loans (annualized) 0.00%  0.02%  0.01%  (0.05)%  (0.11)%  (0.01)%  (0.05)%
                            
                            


Three Month Consolidated Average Balance Sheets & Yields  
With Resultant Interest and Average Rates
  
 Three Months Ended Three Months Ended
(dollars in thousands)December 31, 2018 December 31, 2017
        
ASSETS Interest /Average  Interest /Average
Interest-Earning Assets:Average
Balance
 Income
Expense
 Yield /
Rate
 Average
Balance
 Income
Expense
 Yield /
Rate
Interest-bearing due from banks$33,631 $190 2.25% $28,598 $93 1.29%
Investment securities86,759 580 2.67% 93,841 543 2.31%
Loans, net of unearned fees(1) (2)910,716 11,006 4.79% 828,725 9,438 4.52%
              
Total Interest-Earning Assets1,031,106 11,776 4.53% 951,164 10,074 4.20%
              
Non-Interest-Earning Assets:             
Allowance for loan losses(11,507)     (10,326)    
All other assets83,231      79,802     
              
Total Assets$1,102,830       $1,020,640      
              
LIABILITIES & SHAREHOLDERS' EQUITY             
Interest-Bearing Liabilities:             
NOW deposits$206,239 419 0.81% $215,563 276 0.51%
Savings deposits262,758 593 0.90% 247,655 326 0.52%
Money market deposits45,746 24 0.21% 63,284 27 0.17%
Time deposits233,548 1,195 2.03% 147,035 564 1.52%
Securities sold under agreements to repurchase19,750 15 0.30% 22,103 16 0.29%
FHLB and other borrowings23,174 112 1.92% 31,199 171 2.17%
Subordinated debt9,920 165 6.65% 9,885 165 6.68%
               
Total Interest-Bearing Liabilities801,135 2,523 1.25% 736,724 1,545 0.83%
              
Non-Interest-Bearing Liabilities:             
Demand deposits176,114      167,945     
Other liabilities10,751      8,593     
               
Total Non-Interest-Bearing Liabilities186,865      176,538     
               
Stockholders’ Equity114,830      107,378     
               
Total Liabilities and Shareholders’ Equity$1,102,830       $1,020,640      
              
NET INTEREST INCOME  $9,253      $8,529   
              
NET INTEREST SPREAD(3)    3.28%     3.37%
              
NET INTEREST MARGIN(4)    3.56%     3.56%
              

(1) Included in interest income on loans are net unearned loan fees.
(2) Includes non-performing loans.
(3) The interest rate spread is the difference between the weighted average yield on average interest-earning and the weighted average cost of average interest-bearing liabilities.
(4) The interest rate margin is calculated by dividing annualized net interest income by average interest earning assets.

    
    
Twelve Month Consolidated Average Balance Sheets & Yields   
With Resultant Interest and Average Rates   
 Twelve Months Ended Twelve Months Ended
(dollars in thousands)December 31, 2018 December 31, 2017
  Interest /
Income
Expense
   Interest /
Income
Expense
 
ASSETS Average
Balance
  Average Yield /
Rate
 Average
Balance
  Average
Yield /
Rate
Interest-Earning Assets:     
Interest-bearing due from banks$24,861 $483 1. 95% $33,255 $350 1.05%
Investment securities93,352 2,283 2.45% 94,052 2,089 2.22%
Loans, net of unearned fees(1) (2)890,304 41,726 4.69% 793,671 35,801 4.51%
              
Total Interest-Earning Assets1,008,517 44,492 4.41% 920,978 38,240 4.15%
              
Non-Interest-Earning Assets:             
Allowance for loan losses(11,201)     (9,933)    
All other assets76,475      79,850     
              
Total Assets$1,073,791       $990,895      
              
LIABILITIES & SHAREHOLDERS' EQUITY             
Interest-Bearing Liabilities:             
NOW deposits$215,964 1,356 0.63% $201,490 958 0.48%
Savings deposits260,216 2,008 0.77% 256,222 1,330 0.52%
Money market deposits51,481 94 0.18% 63,093 107 0.17%
Time deposits201,366 3,696 1.84% 135,326 1,968 1.45%
Securities sold under agreements to repurchase19,738 58 0.29% 22,066 66 0.30%
FHLB and other borrowings25,932 494 1.91% 26,544 620 2.34%
Subordinated debt9,907 660 6.67% 9,872 658 6.67%
               
Total Interest-Bearing Liabilities784,604 8,366 1.07% 714,613 5,707 0.80%
              
Non-Interest-Bearing Liabilities:             
Demand deposits168,388      163,707     
Other liabilities9,512      8,003     
              
Total Non-Interest-Bearing Liabilities177,900      171,710     
              
Shareholders’ Equity111,287      104,572     
              
Total Liabilities and Shareholders’ Equity$1,073,791       $990,895      
              
NET INTEREST INCOME  $36,126      $32,533   
              
NET INTEREST SPREAD(3)    3.34%     3.35%
              
NET INTEREST MARGIN(4)    3.58%     3.53%
              

(1) Included in interest income on loans are net unearned loan fees.
(2) Includes non-performing loans.
(3) The interest rate spread is the difference between the weighted average yield on average interest-earning and the weighted average cost of average interest-bearing liabilities.
(4) The interest rate margin is calculated by dividing annualized net interest income by average interest earning assets.


Reconciliation of Non-GAAP Financial Measures

The press release contains certain financial information determined by methods other than in accordance with generally accepted accounting policies in the United States (GAAP). These non-GAAP financial measures are "book value per common share," "tangible book value per common share," "return on average tangible assets," and "return on average tangible equity." This non-GAAP disclosure has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. Our management uses these non-GAAP measures in its analysis of our performance because it believes these measures are material and will be used as a measure of our performance by investors.

(in thousands, except per share data)

 
    
 As of and for the Three Months Ended As of and for the
Twelve Months Ended
 
 Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, Dec. 31, 
 2018 2018 2018 2018 2017 2018 2017 
Total shareholders' equity$116,498 $113,891 $111,347 $108,980 $106,571 $116,498 $106,571 
Less: goodwill and other tangibles (18,109) (18,109) (18,109) (18,109) (18,109) (18,109) (18,109)
Tangible common shareholders’ equity$98,389 $95,782 $93,238 $90,871 $88,462 $98,389 $88,462 
                      
Common shares outstanding 8,607  8,584  8,555  8,525  8,470  8,607  8,470 
Book value per common share$13.54 $13.27 $13.02 $12.78 $12.58 $13.54 $12.58 
                      
Book value per common share$13.54 $13.27 $13.02 $12.78 $12.58 $13.54 $12.58 
Effect of intangible assets (2.11) (2.11) (2.12) (2.12) (2.14) (2.11) (2.14)
Tangible book value per common share$11.43 $11.16 $10.90 $10.66 $10.44 $11.43 $10.44 
               
Return on average assets1.10%1.04%1.00%1.04%0.13%1.04%0.66%
Effect of average intangible assets0.01%0.02%0.02%0.02%- 0.02%0.01%
Return on average tangible assets1.11%1.06%1.02%1.06%0.13%1.06%0.67%
               
Return on average equity10.52%9.98%9.67%10.08%1.24%10.07%6.22%
Effect of average intangible assets1.97%1.91%1.91%
2.04%0.25%1.96%1.30%
Return on average tangible equity12.49%11.90%11.57%12.12%1.49%12.03%7.52%


The following information was filed by Two River Bancorp (TRCB) on Wednesday, January 30, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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