LYNCHBURG, Va., Oct. 21, 2016 (GLOBE NEWSWIRE) -- Bank of the James Financial Group, Inc. (the “Company”) (NASDAQ:BOTJ), the parent company of Bank of the James, a full-service commercial and retail bank serving the greater Lynchburg area (Region 2000), and the Charlottesville, Harrisonburg, and Roanoke, Virginia markets, today announced unaudited results for the three months and nine months ended September 30, 2016.
Net income for the three months ended September 30, 2016 was $1.06 million or $0.24 per diluted share compared with $983,000 or $0.29 per diluted share for the three months ended September 30, 2015. Net income for the nine months ended September 30, 2016 was $2.99 million or $0.68 per diluted share compared with $2.87 million or $0.85 per diluted share for the nine months ended September 30, 2015. Diluted earnings per share in the third quarter and nine months of 2016 reflected a 30% increase in the number of weighted average shares outstanding compared with the third quarter and nine months of 2015, resulting primarily from the issuance of one million new shares of the Company's common stock on December 3, 2015.
Robert R. Chapman III, President and CEO, stated: “We reported a solid financial quarter, with company-record third quarter and nine-months net income that reflected steady progress in our core Region 2000 market and accelerating contributions from operations in Charlottesville, Harrisonburg and Roanoke. We have made prudent and meaningful investments in experienced, proven individuals to drive revenue, and facilities and technology to support success.
“Even as we have invested, we believe maintaining a year-over-year efficiency ratio of 72%, growing commercial lending and residential mortgage originations, attracting new clients and high levels of client retention, while maintaining strong asset and credit quality demonstrate the positive impact of our investments and the resulting growth and productivity.
“We are excited to soon be opening a full-service branch in Appomattox, headed by banking veteran and Appomattox native Thomas R. Cobb as Vice President and Regional Manager. We have served Appomattox clients for many years, and this will enhance our presence in this important Region 2000 market. We are also weeks away from opening a full-service branch in Charlottesville, which has proven to be a dynamic market for Bank of the James since we established a loan production office there in 2013.
“We entered fourth quarter 2016 with a strong pipeline of loans and an ever-expanding number of clients, encouraging us that the company can finish the year with strong results and move confidently into 2017.”
Highlights
- Interest income from earning assets increased 5.4% in third quarter 2016 and 6.6% in the nine months of 2016 from a year earlier, primarily due to commercial loan growth.
- Net interest income increased 8.4% for the three months ended September 30, 2016 and 9.9% for the nine months ended September 30, 2016 compared with the prior year’s periods, reflecting interest income growth, disciplined deposit pricing, and elimination of interest expense resulting from the retirement of outstanding debt in January 2016.
- Noninterest income increased 11.9% in the nine months of 2016 compared with the same period in 2015, primarily reflecting consistent growth in gains on sale of purchase mortgage originations, service charges and income from treasury management and corporate credit card services, and gains on the sale of investment securities.
- Total deposits were a Company record $507.40 million, up 8.5% from December 31, 2015.
- Total loans, net of the allowance for loan losses, were a Company record $457.14 million at September 30, 2016 as the Company continued to build its portfolio of commercial loans. Loans held for sale at September 30, 2016 were $3.05 million compared with $1.96 million at December 31, 2015, reflecting continued strength in residential purchase mortgage originations.
- Commercial loans (primarily C&I) increased 15% year-over-year, with a portfolio of $84.28 million at September 30, 2016 compared with $73.15 million at September 30, 2015. Owner occupied real estate loans grew 10.16% year-over-year, primarily reflecting increased commercial real estate lending.
- Total stockholders’ equity increased to $51.02 million at September 30, 2016, up 5.9% from December 31, 2015. Book value per share was $11.65 at September 30, 2016, up from $11.01 at December 31, 2015.
- Based on the results achieved in the third quarter, on October 18, 2016 the Company’s board of directors approved a $0.06 per share dividend payable to shareholders of record on December 2, 2016, to be paid on December 16, 2016.
Third Quarter 2016 Operational Review
Net income of $1.06 million for the three months ended September 30, 2016 was a company-record for third quarter earnings. Interest income was $5.48 million in third quarter 2016, up 5.4% from third quarter 2015.
Interest expense declined 13.4% to $610,000 in third quarter 2016 from $704,000 in third quarter 2015. As in the first and second quarters of 2016, interest expense reduction primarily reflected the elimination of interest paid on capital notes that were retired in January 2016 following the Company’s common equity placement. The Company grew deposits year-over-year, both core and time deposits, with an average rate paid on interest bearing accounts of 0.61% compared with 0.62% in the prior year’s third quarter.
J. Todd Scruggs, Executive Vice President and CFO, noted: “Eliminating the interest expense on our retired capital notes was the primary driver in reducing the company’s interest expense. In addition, our disciplined investment strategy has enabled us to generate returns on investments contributing to an interest rate spread we believe is quite strong in such a low-rate environment. It has required significant diligence, which has continued to support margins in excess of many of our peer institutions.”
The Company's net interest margin was 3.75% and net interest spread was 3.62% for the three months ended September 30, 2016 compared with 3.76% and 3.59%, respectively, for the three months ended September 30, 2015. The Company’s margin and spread have remained relatively stable on a consecutive quarter basis throughout 2016. Average rates earned on loans, including fees, was 4.52% in third quarter 2016, compared with 4.50% in second quarter 2016, 4.60% in first quarter 2016, and 4.62% in third quarter 2015. The average rate earned on total earning assets in third quarter 2016 was 4.22%.
Net interest income in third quarter 2016 was $4.87 million, an 8.4% increase from $4.49 million in third quarter 2015. The Company’s provision for loan losses was $145,000 in third quarter 2016 compared with $120,000 in third quarter 2015.
Noninterest income from fees, service charges and commissions, including gains from the sale of residential mortgages to the secondary market, and income from the bank's line of treasury management services for commercial customers, was $1.28 million in third quarter 2016 compared with $1.20 million in third quarter 2015. Gains from the Company’s sale of securities contributed $218,000 to noninterest income in third quarter 2016.
“Commercial treasury services, which we feel are competitive with any bank, are not only contributing to noninterest income, but are opening doors to serve a broader range of clients that require them,” Chapman explained. “Our capabilities definitely provide a competitive advantage, giving us the tools to offer cash management options our customers want.”
Noninterest expense for the three months ended September 30, 2016 was $4.45 million compared with $4.12 million for the three months ended September 30, 2015, primarily reflecting costs related to the Company's market expansion, including the hiring of revenue-generating personnel, and investing in technology and security.
Nine Months Operations Reflect Steady Growth
The increase in net income to $2.99 million for the nine months ended September 30, 2016 from $2.87 million for the same period in 2015 resulted from increases in both interest and noninterest income.
Interest income of $16.01 million in the nine months of 2016 rose 6.6% compared with $15.01 million in the nine months of 2015. Net interest income in the nine months of 2016 was $14.30 million, a 9.9% increase compared with $13.01 million in the nine months of 2015, reflecting the growth of interest income and lower interest expense related to diligent interest expense management and the elimination of interest paid on capital notes subsequent to their retirement in January 2016. The Company’s provision for loan losses was $595,000 for the nine months of 2016 compared with $277,000 for the nine months of 2015, reflecting provisioning related to loan growth.
The Company's net interest margin was 3.80% and net interest spread was 3.66% for the nine months ended September 30, 2016 compared with 3.79% and 3.65%, respectively, for the nine months of 2015. Average rates earned on loans, including fees, was 4.52% in the nine months of 2016 and the average yield on total earning assets was 4.22%.
Noninterest income was $3.61 million for the nine months of 2016, a 11.9% increase from $3.22 million in the nine months of 2015. Fee income increased slightly year-over-year, driven primarily by increased implementation of commercial treasury services, gains on sales of residential mortgages to the secondary market, and gains on sales of securities, which contributed $446,000 to noninterest income in the nine months of 2016. Noninterest expense for the nine months ended September 30, 2016 was $12.89 million compared with $11.73 million for the nine months ended September 30, 2015, primarily reflecting increased salaries and benefits, technology investments, marketing and operating expense increases.
Balance Sheet Review
Loans held for investment, net of the allowance for loan losses, were $457.14 million at September 30, 2016 compared with $430.45 million at December 31, 2015, and up from $426.85 million at September 30, 2015. Loans held for sale were $3.05 million at September 30, 2016 compared with $1.96 million at December 31, 2015. The comparison reflects a healthy mortgage origination business throughout our markets, with particularly strong contributions in the third quarter 2016 from the Harrisonburg market.
Michael A. Syrek, Executive Vice President and Senior Loan Officer, commented: “The bank’s strategy of focusing on winning commercial banking clients, retaining clients despite rate competition for quality loans, and building strong and lasting relationships by offering superior service and a variety of products continues to earn business in Region 2000 and Charlottesville. Expanded commercial banking capabilities in Harrisonburg and Roanoke are providing traction in those markets. Our mortgage lending strategy, which is to provide a variety of options to our retail clients and be the mortgage originator of choice, has supported our traditional strengths in serving individuals.”
Total commercial and residential real estate loans at September 30, 2016 were $279.43 million compared with $259.95 million at September 30, 2015, with the 7.5% growth primarily reflecting conservative additions to the bank’s commercial real estate portfolio. Total construction loans were $22.97 million at September 30, 2016 compared with $24.73 million at September 30, 2015, primarily reflecting the completion of client projects.
Total deposits at September 30, 2016 were $507.40 million compared with $467.61 million at December 31, 2015. The bank continued to attract noninterest bearing deposits, which increased to $102.55 million at September 30, 2016 from $91.33 million at December 31, 2015. Core deposits (noninterest bearing, NOW, money market and savings deposits) increased to $343.43 million at September 30, 2016 compared with $324.19 million at December 31, 2015.
Total assets were $559.95 million at September 30, 2016 compared with $527.14 million at December 31, 2015, primarily reflecting growth in loans, net of allowance for loan losses. Loans held for sale were higher, primarily based on increase in mortgage origination volume and the timing of sale of the mortgages, and securities held-to-maturity and the fair value of securities available-for-sale both increased from December 31, 2015.
The Company's asset quality remained strong and stable, with a 0.53% ratio of nonperforming loans to total loans at September 30, 2016. Relatively consistent with prior quarters, the Company's allowance for loan losses to total loans was 1.07%. The Company's allowance for loan losses as a percent of nonperforming loans increased to 203.5% at September 30, 2016 compared with 137.5% at December 31, 2015.
Total nonperforming loans were $2.43 million, down 28.5% from $3.41 million at December 31, 2015. Total nonperforming assets were $4.80 million and other real estate owned was $2.37 million. The bank's regulatory capital ratios continued to exceed accepted regulatory standards for a well-capitalized institution.
The Company grew measures of shareholder value, including tangible book value per share and total stockholders' equity. Total stockholders' equity was $51.02 million at September 30, 2016, compared with $48.20 million at December 31, 2015, and up from $37.16 at September 30, 2015. Retained earnings rose to $10.13 million at September 30, 2016 compared with and $7.92 million at December 31, 2015.
Return on average assets (ROAA) was 0.76% in third quarter 2016, generally consistent with the ROAA in prior year’s third quarter as well as the first and second quarter 2016. Return on average equity (ROAE) in third quarter 2016 was 8.34%, down from 10.64% in third quarter 2015. The decline in year-over-year ROAE primarily reflected the sharp increase in outstanding shares resulting from the Company's common equity issue in December 2015.
Conclusion
“We have significant opportunity to grow business in Region 2000, where Bank of the James is well established,” Chapman said, “and we believe there is meaningful potential for growth in the Charlottesville, Roanoke and Harrisonburg markets. Technology, healthcare and education are important economic drivers in all our markets, and we are demonstrating results, from new clients to expanded client relationships.”
Scruggs added: “We are keeping a close eye on return on investment from our investment in people, facilities and products. Our team is very aware that the company’s investments must translate to results, and the results demonstrate that this is happening.”
Chapman concluded: “We have led our expansion in Region 2000 and other markets with finding and hiring quality individuals who are proven producers. Our markets appear to be generally economically healthy. With a full line of products and capabilities, combined with market opportunity, we look forward to serving clients and continuing to build value for our shareholders.”
About the Company
Bank of the James, a wholly owned subsidiary of Bank of the James Financial Group, Inc., serves the greater Lynchburg area (Region 2000), Charlottesville, Harrisonburg, Roanoke, and other markets in Virginia. The bank operates 10 full service locations, two limited service branches, two loan production offices, and an investment/insurance services division. Bank of the James Financial Group, Inc. common stock is listed under the symbol "BOTJ" on the NASDAQ Stock Market, LLC.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "estimate," "expect," "intend," "anticipate," "plan" and similar expressions and variations thereof identify certain of such forward-looking statements which speak only as of the dates on which they were made. Bank of the James Financial Group, Inc. (the "Company") undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. Such factors include, but are not limited to, competition, general economic conditions, potential changes in interest rates, and changes in the value of real estate securing loans made by Bank of the James (the "Bank"), a subsidiary of the Company. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the Company's filings with the Securities and Exchange Commission and previously filed by the Bank (as predecessor of the Company) with the Federal Reserve Board.
CONTACT:
J. Todd Scruggs
Executive Vice President and Chief Financial Officer
(434) 846-2000
tscruggs@bankofthejames.com
Bank of the James Financial Group, Inc. and Subsidiaries
(000's) except ratios and percent data
unaudited
| Selected Data: | Three months ending Sep 30, 2016 | Three months ending Sep 30, 2015 | Change | Year to date Sep 30, 2016 | Year to date Sep 30, 2015 | Change | ||||||||||||
| Interest income | $ | 5,477 | $ | 5,195 | 5.43 | % | $ | 16,005 | $ | 15,012 | 6.61 | % | ||||||
| Interest expense | 610 | 704 | -13.35 | % | 1,708 | 2,001 | -14.64 | % | ||||||||||
| Net interest income | 4,867 | 4,491 | 8.37 | % | 14,297 | 13,011 | 9.88 | % | ||||||||||
| Provision for loan losses | 145 | 120 | 20.83 | % | 595 | 277 | 114.80 | % | ||||||||||
| Noninterest income | 1,281 | 1,198 | 6.93 | % | 3,605 | 3,223 | 11.85 | % | ||||||||||
| Noninterest expense | 4,449 | 4,118 | 8.04 | % | 12,893 | 11,733 | 9.89 | % | ||||||||||
| Income taxes | 499 | 468 | 6.62 | % | 1,421 | 1,357 | 4.72 | % | ||||||||||
| Net income | 1,055 | 983 | 7.32 | % | 2,993 | 2,867 | 4.39 | % | ||||||||||
| Weighted average shares outstanding | 4,378,436 | 3,371,616 | 29.86 | % | 4,378,436 | 3,371,616 | 29.86 | % | ||||||||||
| Basic net income per share | $ | 0.24 | $ | 0.29 | $ | (0.05 | ) | $ | 0.68 | $ | 0.85 | $ | (0.17 | ) | ||||
| Fully diluted net income per share | $ | 0.24 | $ | 0.29 | $ | (0.05 | ) | $ | 0.68 | $ | 0.85 | $ | (0.17 | ) | ||||
| Balance Sheet at period end: | Sep 30, 2016 | Dec 31, 2015 | Change | Sep 30, 2015 | Dec 31, 2014 | Change | ||||||||||||
| Loans, net | $ | 457,136 | $ | 430,445 | 6.20 | % | $ | 426,850 | $ | 394,573 | 8.18 | % | ||||||
| Loans held for sale | 3,048 | 1,964 | 55.19 | % | 3,823 | 1,030 | 271.17 | % | ||||||||||
| Total securities | 43,226 | 38,515 | 12.23 | % | 35,645 | 26,923 | 32.40 | % | ||||||||||
| Total deposits | 507,397 | 467,610 | 8.51 | % | 458,656 | 399,497 | 14.81 | % | ||||||||||
| Stockholders' equity | 51,015 | 48,196 | 5.85 | % | 37,158 | 34,776 | 6.85 | % | ||||||||||
| Total assets | 559,952 | 527,143 | 6.22 | % | 507,615 | 460,865 | 10.14 | % | ||||||||||
| Shares outstanding | 4,378,436 | 4,378,436 | - | 3,371,616 | 3,371,616 | - | ||||||||||||
| Book value per share | $ | 11.65 | $ | 11.01 | 0.64 | $ | 11.02 | $ | 10.31 | $ | 0.71 | |||||||
| Daily averages: | Three months ending Sep 30, 2016 | Three months ending Sep 30, 2015 | Change | Year to date Sep 30, 2016 | Year to date Sep 30, 2015 | Change | ||||||||||||
| Loans, net | $ | 455,542 | $ | 419,359 | 8.63 | % | $ | 441,834 | $ | 407,660 | 8.38 | % | ||||||
| Loans held for sale | 4,082 | 3,009 | 35.66 | % | 3,615 | 2,263 | 59.74 | % | ||||||||||
| Total securities | 42,263 | 34,726 | 21.70 | % | 41,204 | 30,862 | 33.51 | % | ||||||||||
| Total deposits | 501,171 | 446,823 | 12.16 | % | 483,247 | 439,301 | 10.00 | % | ||||||||||
| Stockholders' equity | 50,160 | 36,644 | 36.88 | % | 49,417 | 36,028 | 37.16 | % | ||||||||||
| Interest earning assets | 520,087 | 473,971 | 9.73 | % | 503,270 | 459,419 | 9.54 | % | ||||||||||
| Interest bearing liabilities | 401,332 | 366,736 | 9.43 | % | 388,559 | 369,058 | 5.28 | % | ||||||||||
| Total assets | 552,347 | 494,023 | 11.81 | % | 534,576 | 489,125 | 9.29 | % | ||||||||||
| Financial Ratios: | Three months ending Sep 30, 2016 | Three months ending Sep 30, 2015 | Change | Year to date Sep 30, 2016 | Year to date Sep 30, 2015 | Change | ||||||||||||
| Return on average assets | 0.76 | % | 0.79 | % | (0.03 | ) | 0.75 | % | 0.78 | % | (0.03 | ) | ||||||
| Return on average equity | 8.34 | % | 10.64 | % | (2.30 | ) | 8.10 | % | 10.64 | % | (2.54 | ) | ||||||
| Net interest margin | 3.75 | % | 3.76 | % | (0.01 | ) | 3.80 | % | 3.79 | % | 0.01 | |||||||
| Efficiency ratio | 72.36 | % | 72.39 | % | (0.03 | ) | 72.02 | % | 72.27 | % | (0.25 | ) | ||||||
| Average equity to average assets | 9.08 | % | 7.42 | % | 1.66 | 9.24 | % | 7.37 | % | 1.88 | ||||||||
| Allowance for loan losses: | Three months ending Sep 30, 2016 | Three months ending Sep 30, 2015 | Change | Year to date Sep 30, 2016 | Year to date Sep 30, 2015 | Change | ||||||||||||
| Beginning balance | $ | 4,887 | $ | 4,586 | 6.56 | % | $ | 4,683 | $ | 4,790 | -2.23 | % | ||||||
| Provision for losses | 145 | 120 | 20.83 | % | 595 | 277 | 114.80 | % | ||||||||||
| Charge-offs | (114 | ) | (29 | ) | 293.10 | % | (492 | ) | (489 | ) | 0.61 | % | ||||||
| Recoveries | 35 | 71 | -50.70 | % | 167 | 170 | -1.76 | % | ||||||||||
| Ending balance | 4,953 | 4,748 | 4.32 | % | 4,953 | 4,748 | 4.32 | % | ||||||||||
| Nonperforming assets: | Sep 30, 2016 | Dec 31, 2015 | Change | Sep 30, 2015 | Dec 31, 2014 | Change | ||||||||||||
| Total nonperforming loans | $ | 2,434 | $ | 3,406 | -28.54 | % | $ | 1,594 | $ | 3,505 | -54.52 | % | ||||||
| Other real estate owned | 2,370 | 1,965 | 20.61 | % | 2,265 | 956 | 136.92 | % | ||||||||||
| Total nonperforming assets | 4,804 | 5,371 | -10.56 | % | 3,859 | 4,461 | -13.49 | % | ||||||||||
| Troubled debt restructurings - (performing portion) | 457 | 646 | -29.26 | % | 843 | 376 | 124.20 | % | ||||||||||
| Asset quality ratios: | Sep 30, 2016 | Dec 31, 2015 | Change | Sep 30, 2015 | Dec 31, 2014 | Change | ||||||||||||
| Nonperforming loans to total loans | 0.53 | % | 0.78 | % | (0.25 | ) | 0.37 | % | 0.88 | % | (0.50 | ) | ||||||
| Allowance for loan losses to total loans | 1.07 | % | 1.08 | % | 0.01 | 1.10 | % | 1.20 | % | (0.10 | ) | |||||||
| Allowance for loan losses to nonperforming loans | 203.49 | % | 137.49 | % | 66.00 | 297.87 | % | 136.66 | % | 161.21 | ||||||||
Bank of the James Financial Group, Inc. and Subsidiaries
Consolidated Balance Sheets
(dollar amounts in thousands, except per share amounts)
| (unaudited) 9/30/2016 | 12/31/2015 | ||||||
| Assets | |||||||
| Cash and due from banks | $ | 16,206 | $ | 15,952 | |||
| Federal funds sold | 9,725 | 12,703 | |||||
| Total cash and cash equivalents | 25,931 | 28,655 | |||||
| Securities held-to-maturity (fair value of $3,425 in 2016 and $2,649 in 2015) | 3,304 | 2,519 | |||||
| Securities available-for-sale, at fair value | 39,922 | 35,996 | |||||
| Restricted stock, at cost | 1,373 | 1,313 | |||||
| Loans, net of allowance for loan losses of $4,953 in 2016 and $4,683 in 2015 | 457,136 | 430,445 | |||||
| Loans held for sale | 3,048 | 1,964 | |||||
| Premises and equipment, net | 9,991 | 9,751 | |||||
| Software, net | 189 | 256 | |||||
| Interest receivable | 1,307 | 1,248 | |||||
| Cash value - bank owned life insurance | 12,586 | 9,781 | |||||
| Other real estate owned | 2,370 | 1,965 | |||||
| Income taxes receivable | 1,226 | 1,096 | |||||
| Deferred tax asset | 1,082 | 1,399 | |||||
| Other assets | 487 | 755 | |||||
| Total assets | $ | 559,952 | $ | 527,143 | |||
| Liabilities and Stockholders' Equity | |||||||
| Deposits | |||||||
| Noninterest bearing demand | $ | 102,547 | $ | 91,325 | |||
| NOW, money market and savings | 240,885 | 232,864 | |||||
| Time | 163,965 | 143,421 | |||||
| Total deposits | 507,397 | 467,610 | |||||
| Capital notes | - | 10,000 | |||||
| Interest payable | 77 | 61 | |||||
| Other liabilities | 1,463 | 1,276 | |||||
| Total liabilities | $ | 508,937 | $ | 478,947 | |||
| Stockholders' equity | |||||||
| Preferred stock; authorized 1,000,000 shares; none issued and outstanding | |||||||
| as of September 30, 2016 and December 31, 2015 | $ | - | $ | - | |||
| Common stock $2.14 par value; authorized 10,000,000 shares; issued and outstanding | |||||||
| 4,378,436 as of September 30, 2016 and December 31, 2015 | 9,370 | 9,370 | |||||
| Additional paid-in-capital | 31,495 | 31,495 | |||||
| Retained earnings | 10,126 | 7,920 | |||||
| Accumulated other comprehensive income (loss) | 24 | (589 | ) | ||||
| Total stockholders' equity | $ | 51,015 | $ | 48,196 | |||
| Total liabilities and stockholders' equity | $ | 559,952 | $ | 527,143 | |||
Bank of the James Financial Group, Inc. and Subsidiaries
Consolidated Statements of Income
(dollar amounts in thousands, except per share amounts)
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
| Interest Income | 2016 | 2015 | 2016 | 2015 | |||||||||||
| Loans | $ | 5,227 | $ | 4,968 | $ | 15,212 | $ | 14,354 | |||||||
| Securities | |||||||||||||||
| US Government and agency obligations | 104 | 144 | 368 | 427 | |||||||||||
| Mortgage backed securities | 46 | 30 | 166 | 58 | |||||||||||
| Municipals | 73 | 39 | 163 | 107 | |||||||||||
| Dividends | 6 | 6 | 39 | 40 | |||||||||||
| Other (Corporates) | 4 | 2 | 13 | 5 | |||||||||||
| Interest bearing deposits | 13 | 3 | 28 | 9 | |||||||||||
| Federal Funds sold | 4 | 3 | 16 | 12 | |||||||||||
| Total interest income | 5,477 | 5,195 | 16,005 | 15,012 | |||||||||||
| Interest Expense | |||||||||||||||
| Deposits | |||||||||||||||
| NOW, money market savings | 153 | 130 | 428 | 375 | |||||||||||
| Time Deposits | 390 | 394 | 1,132 | 1,065 | |||||||||||
| Federal Funds purchased | - | 1 | 4 | 2 | |||||||||||
| FHLB borrowings | - | - | - | 28 | |||||||||||
| Brokered time deposits | 67 | 29 | 136 | 81 | |||||||||||
| Capital notes 6% due 4/1/2017 | - | 150 | 8 | 450 | |||||||||||
| Total interest expense | 610 | 704 | 1,708 | 2,001 | |||||||||||
| Net interest income | 4,867 | 4,491 | 14,297 | 13,011 | |||||||||||
| Provision for loan losses | 145 | 120 | 595 | 277 | |||||||||||
| Net interest income after provision for loan losses | 4,722 | 4,371 | 13,702 | 12,734 | |||||||||||
| Noninterest income | |||||||||||||||
| Mortgage fee income | 593 | 623 | 1,765 | 1,759 | |||||||||||
| Service charges, fees and commissions | 373 | 397 | 1,107 | 1,063 | |||||||||||
| Increase in cash value of life insurance | 75 | 68 | 205 | 204 | |||||||||||
| Other | 22 | 100 | 82 | 154 | |||||||||||
| Gain on sale of available-for-sale securities | 218 | 10 | 446 | 43 | |||||||||||
| Total noninterest income | 1,281 | 1,198 | 3,605 | 3,223 | |||||||||||
| Noninterest expenses | |||||||||||||||
| Salaries and employee benefits | 2,318 | 2,135 | 6,717 | 6,346 | |||||||||||
| Occupancy | 333 | 302 | 970 | 903 | |||||||||||
| Equipment | 316 | 360 | 949 | 963 | |||||||||||
| Supplies | 119 | 100 | 346 | 304 | |||||||||||
| Professional, data processing, and other outside expense | 696 | 591 | 2,059 | 1,637 | |||||||||||
| Marketing | 178 | 97 | 498 | 321 | |||||||||||
| Credit expense | 110 | 94 | 299 | 230 | |||||||||||
| Other real estate expenses | 52 | 63 | 57 | 100 | |||||||||||
| FDIC insurance expense | 92 | 87 | 275 | 240 | |||||||||||
| Other | 235 | 289 | 723 | 689 | |||||||||||
| Total noninterest expenses | 4,449 | 4,118 | 12,893 | 11,733 | |||||||||||
| Income before income taxes | 1,554 | 1,451 | 4,414 | 4,224 | |||||||||||
| Income tax expense | 499 | 468 | 1,421 | 1,357 | |||||||||||
| Net Income | $ | 1,055 | $ | 983 | $ | 2,993 | $ | 2,867 | |||||||
| Weighted average shares outstanding - basic and diluted | 4,378,436 | 3,371,616 | 4,378,436 | 3,371,616 | |||||||||||
| Net income per common share - basic and diluted | $ | 0.24 | $ | 0.29 | $ | 0.68 | $ | 0.85 | |||||||