Revere Bank Announces Fourth Quarter and Annual 2018 Record Earnings – 2018 Net Income of $27.6 Million Increased 69.8% Over 2017


ROCKVILLE, Md., Jan. 29, 2019 (GLOBE NEWSWIRE) -- Revere Bank (the “Bank”) (OTCQX: REVB) today reported record quarterly net income of $7.21 million for the quarter ended December 31, 2018, a 161.1% increase compared to $2.76 million for the quarter ended December 31, 2017 and a 2.9% increase over the quarter ended September 30, 2018.  Pre-tax net income for the quarter ended December 31, 2018 was $9.92 million, an increase of 16.7% compared to $8.50 million for the quarter ended December 31, 2017.  We believe pre-tax net income provides a better comparison to last year due to the impact of the Tax Cuts and Jobs Act (“Tax Act”), as discussed under the Earnings and Growth Highlights section. 

Net income per basic common share for the fourth quarter of 2018 was $0.61 compared to $0.28 for the same period in 2017, an increase of 117.9%. Net income per diluted common share increased 118.5% to $0.59 for the fourth quarter of 2018 compared to $0.27 for the same period in 2017. 

For the year ended December 31, 2018, net income was $27.63 million, a 69.8% increase compared to $16.27 million for the year ended December 31, 2017.  Pre-tax net income increased 24.1% to $37.05 million for the year ended December 31, 2018, from $29.85 million for the year ended December 31, 2017. Net income per basic common share for the year ended December 31, 2018, was $2.62 compared to $1.67 for 2017, an increase of 56.9%. Net income per diluted common share increased 58.5% to $2.52 for the year ended December 31, 2018, compared to $1.59 for 2017.

Quarterly Highlights

  • Pre-tax net income grew by 4.9% compared to the third quarter of 2018 and by 16.7% compared to the fourth quarter of 2017.
  • Period end loans grew 14.9%, or $270.1 million, compared to the fourth quarter of 2017, and grew 4.4%, or $87.3 million, compared to the third quarter of 2018.
  • Period end deposits grew 16.4%, or $293.9 million, compared to the fourth quarter of 2017 and grew 7.1%, or $138.6 million, compared to the third quarter of 2018.  Core deposits, defined as total deposits excluding brokered deposits and listing services deposits, grew 8.0%, or $149.8 million, compared to the third quarter of 2018.  This increase includes approximately $40.0 million of short term deposits that are expected to be withdrawn in the first quarter of 2019.  As adjusted to eliminate the impact of these short term deposits, our fourth quarter 2018 growth of total and core deposits was 5.1% and 5.9%, respectively, compared to the third quarter of 2018.

Drew Flott, Co-President and CEO, said, “We are proud of our growth and increased earnings especially when comparing pre-tax net income, the best apples-to-apples comparison of our year-over-year performance.  We continue to be optimistic about our future.”

Ken Cook, Co-President and CEO, added, “Our strong earnings momentum continued on both a year-over-year and a linked quarter basis, complemented by continued outstanding credit quality. Robust balance sheet growth throughout 2018, but particularly in the fourth quarter, has set the stage for continued healthy income growth in 2019.”

Earnings and Growth Highlights

           
In thousands, except per share data 4Q 2018 3Q 2018 4Q 2017 YTD 2018 YTD 2017
Pre-tax income $9,917 $9,451 $8,499 $37,052 $29,849
Net Income  7,212  7,006  2,762  27,627  16,271
EPS  0.61  0.68  0.28  2.62  1.67
Diluted EPS  0.59  0.65  0.27  2.52  1.59
           
Loans $2,084,806 $1,997,511 $1,814,692    
Deposits  2,088,967  1,950,385  1,795,092    
           

Fourth quarter net income increased $4.45 million, or 161.1%, compared to the fourth quarter of 2017, driven by stronger pre-tax earnings and a lower tax rate in 2018 and the negative impact of the $2.41 million one-time deferred tax charge related to the Tax Act taken during the fourth quarter of 2017.  Pre-tax net income, a more comparable metric, increased $1.42 million, or 16.7%, compared to the quarter ended December 31, 2017, primarily driven by a 17.1% increase in net interest income.  Net income increased $206 thousand, or 2.9%, compared to the third quarter of 2018 also driven by net interest income growth.  The fourth quarter diluted EPS declined compared to the third quarter of 2018, despite higher earnings, due to the incremental shares from the late third quarter capital raise being outstanding for the entire period.  Compared to the prior year quarter, EPS increased significantly due to strong pre-tax net income growth and the previously discussed impacts of the Tax Act.

For the year ended December 31, 2018, net income increased $11.36 million, or 69.8%, compared to 2017.  The change in year-to-date net income was similarly impacted by a lower tax rate in 2018 and the one-time deferred tax charge in the fourth quarter of 2017 related to the Tax Act.  During the year diluted EPS increased $0.93 per share, or 58.5%, as a result of increased pre-tax net income and a decrease in tax expense, as previously mentioned.

The Bank’s continued earnings growth is driven by strong loan and deposit growth.  As of December 31, 2018, loans were $2.08 billion, an increase of 4.4% compared to loans of $2.00 billion as of September 30, 2018, and an increase of 14.9% compared to loans of $1.81 billion as of December 31, 2017.  Deposits increased 7.1% to $2.09 billion as of December 31, 2018, compared to $1.95 billion as of September 30, 2018, and increased 16.4% compared to $1.80 billion as of December 31, 2017. 

Income Statement Review
Net interest income

           
In thousands 4Q 2018 3Q 2018 4Q 2017 YTD 2018 YTD 2017
Interest income $29,522  $27,403  $23,466  $106,973  $88,388 
Interest expense  7,364   6,559   4,543   24,131   16,533 
Net interest income $22,158  $20,844  $18,923  $82,842  $71,855 
           
Yield on interest-earning assets  5.00%  4.85%  4.66%  4.87%  4.62%
Cost of interest-bearing liabilities  1.67%  1.51%  1.16%  1.44%  1.10%
Net Interest margin  3.75%  3.69%  3.76%  3.77%  3.76%
           

Our net interest income continues to grow and drive increased earnings. Fourth quarter net interest income increased 17.1% compared to the same period last year and 6.3% compared to the prior quarter. Net interest income for the year increased 15.3% compared to last year. Interest income increased for all periods from a combination of strong loan growth and increasing yields on interest-earning assets. Similarly, interest expense has increased due to the competitive rate environment as well as the increased volume of deposits used to fund loan growth.

On a year-to-date basis our net interest margin increased by one basis point from last year to 3.77%. Our current quarter’s net interest margin increased six basis points from the prior quarter and decreased one basis point compared to the same period last year. Our net interest margin has normalized compared to the prior period as we have deployed the funds from the CD campaign and capital raise that took place during the third quarter. Although our loan portfolio is positioned to respond well in a rising rate environment, with approximately one third of our portfolio maturing or repricing within one year, the increasing cost of interest-bearing liabilities outpaced the increases in our interest-earning assets during the year and has continued to put pressure on our net interest margin.  This has been partially mitigated by the successful growth in our non-interest bearing deposits of 13.9% in 2018. As always our focus remains on maintaining the net interest margin and the quality of our loan portfolio.

Provision for Loan Losses
For the fourth quarter of 2018, the provision for loan losses increased $693 thousand and $687 thousand compared to the third quarter of 2018 and fourth quarter of 2017, respectively.  For the year ended December 31, 2018, the provision increased $930 thousand compared to the prior year.  The increase in our provision for the fourth quarter of 2018 and for the year was in line with loan growth during the respective periods. 

Non-interest income and Non-interest expense

           
Dollars in thousands 4Q 2018 3Q 2018 4Q 2017 YTD 2018 YTD 2017
Non-interest income $632  $425  $518  $2,245  $2,128 
Non-interest expense $11,535  $11,173  $10,291  $43,946  $40,975 
           
Efficiency ratio  50.61%  52.53%  52.93%  51.65%  55.38%
           

Non-interest income was $632 thousand for the fourth quarter, an increase of $114 thousand, or 22.0%, compared to the fourth quarter of 2017, and $207 thousand, or 48.7%, compared to the third quarter of 2018.  For the year ended December 31, 2018, total non-interest income increased by 5.5% to $2.25 million, compared to $2.13 million for the year ended December 31, 2017. A $141 thousand recovery received during the fourth quarter of 2018, related to an acquired loan, caused the increase compared to all reported periods.

Non-interest expense increased by $1.24 million, or 12.1%, in the fourth quarter compared to the same period last year. The year-over-year increase was driven by higher salaries and benefits expense, partially offset by lower FDIC premiums due to our stronger capital position. Compared to the third quarter of 2018, non-interest expense increased $362 thousand, or 3.2%, primarily driven by an increase in salaries and benefits and partially offset by decreases in legal and professional fees and lower FDIC premiums due to our stronger capital position. 

For the year, non-interest expense increased $2.97 million, or 7.3%, to $43.95 million, compared to $40.98 million during the year ended 2017.  The year-to-date increase was also primarily the result of an increase in salaries and benefits due to an increase in the number of employees to support our continued growth and the initiation of a brand identity marketing campaign that began during the third quarter of 2018.  

During the fourth quarter our efficiency ratio improved to 50.61% compared to 52.93% in the same period last year and improved for the year ended December 31, 2018, to 51.65% from 55.38% for 2017. The improvement is primarily due to strong net interest income growth, continued economies of scale as we continue to grow, and to a lesser extent, a reduction in acquisition expense compared to the prior year. Compared to the prior quarter our efficiency ratio improved to 50.61% from 52.53% primarily due to an increase in net interest income.

Performance Ratios

       
  4Q 2018 3Q 2018 4Q 2017
Return on average assets (annualized) 1.19% 1.21% 0.52%
Return on average equity (annualized) 10.95% 13.00% 5.78%
       

Return on average assets and return on average equity increased 67 basis points and 517 basis points, respectively, during the quarter compared to the same period last year.  These increases for the fourth quarter over the prior year period were primarily driven by increased earnings and the impact of the Tax Act, as previously discussed.  Return on average assets effectively remained unchanged quarter over quarter.  Return on average equity declined by 205 basis points quarter over quarter as a result of our capital raise late in the third quarter.  We expect our return on equity to normalize once we have fully deployed our new capital.

Balance Sheet Review

       
  At the period ended
Dollars in thousands Dec. 2018 Sep. 2018 Dec. 2017
Assets $2,455,211 $2,317,700 $2,098,845
Loans  2,084,806  1,997,511  1,814,692
Deposits  2,088,967  1,950,385  1,795,092
FHLB borrowings  63,456  74,594  77,827
Stockholders' equity  264,891  255,905  188,277
       

Asset growth from December 31, 2017, to December 31, 2018, was $356.4 million, or 17.0%, and was driven primarily by loan growth, and to a lesser extent increases in cash and due from banks and securities available-for-sale.  Assets increased $137.5 million compared to the prior quarter, or 5.9%, also due to loan growth and increases in cash and due from banks and securities available-for-sale.

Loans increased $270.1 million, or 14.9%, compared to December 31, 2017, driven primarily by an increase in commercial real estate loans and commercial loans.  Compared to September 30, 2018, loans increased $87.3 million, or 4.4%, primarily due to commercial real estate loan growth.

Deposits increased $293.9 million, or 16.4%, and $138.6 million, or 7.1%, compared to December 31, 2017 and September 30, 2018, respectively.  As previously mentioned this increase includes approximately $40.0 million of short term deposits that are expected to be withdrawn during the first quarter of 2019.  As adjusted to eliminate the impact of these short term deposits, deposit growth was 14.1% compared to December 31, 2017, and 5.1% compared to September 30, 2018.  The increases for both periods are primarily due to increases in CD and money market deposits. Our non-interest bearing deposits grew by 13.9% compared to December 31, 2017, and by 4.4% compared to September 30, 2018.

Stockholders’ equity increased $76.6 million, or 40.7% compared to December 31, 2017.  The very strong equity growth compared to last year was achieved through record earnings for the year and a successful capital raise that yielded $44.1 million in net capital through the issuance of 1.61 million common shares.  Stockholders’ equity increased by $9.0 million, or 3.5%, compared to September 30, 2018, driven primarily by record earnings for the fourth quarter of 2018.
  
The Bank’s capital ratios remain well above regulatory guidelines for well-capitalized banks. As of December 31, 2018, the Bank’s total risk-based capital ratio and tier 1 leverage ratio were 13.77% and 10.03%, respectively, compared to 11.21% and 7.75%, respectively, as of December 31, 2017.  As of December 31, 2018, the Bank’s tangible equity to total tangible assets ratio was 9.67% compared to 7.60% as of December 31, 2017.

As of December 31, 2018, the Bank’s tangible book value per share was $19.84, up 24.5% compared to $15.94 as of December 31, 2017.  The increase in tangible book value per share was due to strong earnings per share plus approximately $1.41 per share accretion from the capital raise.

Asset Quality Review

       
  At or for the three months ended
Dollars in thousands Dec. 2018 Sep. 2018 Dec. 2017
Non-performing assets $2,025  $1,809  $2,206 
Non-performing assets to total assets  0.08%  0.08%  0.11%
       
Loans 30-89 days past due and still accruing interest $793  $1,177  $575 
Loans 30-89 days past due and still accruing interest to total assets  0.03%  0.05%  0.03%
Quarterly net charge-offs (recoveries) $147  $-  $265 
       

Asset quality continues to remain very strong.  As of December 31, 2018, non-performing assets as a percentage of total assets remained flat at 0.08% compared to September 30, 2018, and decreased from 0.11% at December 31, 2017.  The decrease compared to last year was driven by a decline in non-performing assets as well as an increase in total assets.

Loans 30-89 days past due and still accruing interest decreased $384 thousand compared to the prior period and increased $218 thousand compared to the same period last year.  The Bank had $147 thousand of net charge-offs in the fourth quarter of 2018, compared to $265 thousand of net charge-offs in the fourth quarter of 2017, and compared to no net charge-offs in the third quarter of 2018.  For the year ended December 31, 2018, the Bank reported $204 thousand in net charge-offs compared to net charge-offs of $550 thousand during 2017.

The Bank is proactive in monitoring its loan portfolio for any indication of weakness and attempts to mitigate future risks across all lines of business.

Revere Bank is a Maryland, state-chartered bank that commenced operations in November 2007.  The Bank is headquartered in Rockville and has 11 branches located in the suburban Maryland counties of Anne Arundel, Baltimore, Frederick, Howard, Montgomery, and Prince George’s.  The Bank is a community-based, full-service commercial bank that emphasizes the banking needs of community-based businesses, professional entities, and individuals.  Further information on Revere Bank can be obtained by visiting our website at www.reverebank.com.

Contact:

Andrew Flott, Co-President & CEO Kenneth Cook, Co-President & CEO
(240) 264-5340 (240) 264-5372
andrew.flott@reverebank.com kenneth.cook@reverebank.com

Forward-Looking Statement
This press release contains forward-looking statements within the meaning of the Securities and Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Bank operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be identified by use of words such as “may,” “will,” “anticipates,” “believes,” “expects,” “plans,” “estimates,” “potential,” “continue,” “should,” and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Bank’s market, interest rates and interest rate policy, competitive factors, and other conditions which by their nature, are not susceptible to accurate forecast, and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results may differ materially from those indicated herein. Readers are cautioned against placing undue reliance on any such forward-looking statements. The Bank’s past results are not necessarily indicative of future performance.

Non-GAAP Financial Measures
Statements included in this press release include non-GAAP financial measures and should be read along with the Financial Highlights table, which provides a reconciliation of non-GAAP financial measures to GAAP financial measures. This press release and the accompanying tables discuss financial measures, such as tangible common equity, tangible assets and tangible book value per share, which are non-GAAP measures. We believe that such non-GAAP measures are useful because they enhance the ability of investors and management to evaluate and compare the Bank’s operating results from period to period in a meaningful manner. Non-GAAP measures should not be considered as an alternative to any measure of performance as promulgated under GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other banks. Investors should consider the Bank’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Bank. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Bank’s results or financial condition as reported under GAAP.

Revere Bank
Consolidated Balance Sheets
(dollars in thousands)
        
   Dec. 31, 2018 Sep. 30, 2018 Dec. 31, 2017
   (Unaudited) (Unaudited) (Audited)
Assets     
        
Cash and due from banks $136,442  $104,740  $70,730 
Federal funds sold  -   12   12 
 Total cash and cash equivalents  136,442   104,752   70,742 
Interest-bearing deposits with banks  -   -   1,470 
Securities available-for-sale, at fair value  187,558   167,911   163,226 
Equity securities, at cost  4,698   5,230   5,150 
Loans  2,084,806   1,997,511   1,814,692 
Less allowance for loan losses  18,712   17,521   14,827 
 Loans, net  2,066,094   1,979,990   1,799,865 
Premises and equipment, net  4,283   4,169   4,227 
Accrued interest receivable  6,854   6,556   5,868 
Deferred tax assets  6,397   6,528   5,233 
Bank owned life insurance  10,902   10,842   10,664 
Goodwill  26,815   26,815   26,815 
Core deposit intangibles  3,627   3,804   4,337 
Other assets  1,541   1,103   1,248 
        
 Total Assets $2,455,211  $2,317,700  $2,098,845 
        
Liabilities and Stockholders' Equity     
        
Liabilities      
Deposits:      
 Non-interest-bearing demand $368,063  $352,560  $323,149 
 Interest-bearing  1,720,904   1,597,825   1,471,943 
 Total Deposits  2,088,967   1,950,385   1,795,092 
Federal Home Loan Bank advances  63,456   74,594   77,827 
Subordinated debt, net  30,715   30,690   30,607 
Accrued interest payable  1,320   791   929 
Other liabilities  5,862   5,335   6,113 
        
 Total Liabilities  2,190,320   2,061,795   1,910,568 
        
Stockholders' Equity      
Common stock, par value $5 per share; 30,000,000 shares authorized; shares issued
  and outstanding of 11,817,361 for December 2018, 11,803,007 for September 2018,
  and 9,854,488 for December 2017
 59,087   59,015   49,272 
Surplus  145,076   144,538   104,921 
Retained earnings  62,878   55,473   35,060 
Accumulated other comprehensive loss  (2,150)  (3,121)  (976)
        
 Total Stockholders' Equity  264,891   255,905   188,277 
        
 Total Liabilities and Stockholders' Equity $2,455,211  $2,317,700  $2,098,845 
        

 

Revere Bank
Consolidated Income Statements
(dollars in thousands, except per share data)
(Unaudited)
             
    Three Months Ended Twelve Months Ended
    Dec. 31, 2018 Sep. 30, 2018 Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2017
             
Interest Income          
 Loans, including fees $27,580 $25,933  $22,467 $101,243  $84,590 
 Securities  1,045  929   808  3,691   2,965 
 Federal funds sold and other  897  541   191  2,039   833 
             
  Total Interest Income  29,522  27,403   23,466  106,973   88,388 
             
Interest Expense          
 Deposits  6,594  5,625   3,802  20,972   13,691 
 Borrowed funds  304  471   279  1,304   1,001 
 Subordinated debt  466  463   462  1,855   1,841 
             
  Total Interest Expense  7,364  6,559   4,543  24,131   16,533 
             
Net Interest Income  22,158  20,844   18,923  82,842   71,855 
Provision for Loan Losses  1,338  645   651  4,089   3,159 
Net interest income after provision for loan losses  20,820  20,199   18,272  78,753   68,696 
Non-interest income          
 Service charges on deposits  328  254   219  1,071   921 
 Other non-interest income  244  136   239  962   967 
 Disposal of premises and equipment  -  (26)  -  (26)  (2)
 Earnings on bank owned life insurance  60  61   60  238   242 
             
  Total Non-interest income  632  425   518  2,245   2,128 
Non-Interest Expense          
 Salaries and employee benefits  7,947  7,265   6,601  29,120   26,499 
 Occupancy and equipment  1,007  988   1,090  3,927   4,065 
 Legal and professional fees  176  388   331  1,257   1,041 
 Advertising  322  430   307  1,200   765 
 Data processing  627  657   585  2,515   2,397 
 FDIC premiums  118  330   368  1,147   1,544 
 Merger and acquisitions costs  -  -   25  -   584 
 Core deposit intangible amortization  177  178   177  710   710 
 Other  1,161  937   807  4,070   3,370 
             
  Total Non-interest expense  11,535  11,173   10,291  43,946   40,975 
Income before income taxes  9,917  9,451   8,499  37,052   29,849 
Income Tax Expense  2,705  2,445   5,737  9,425   13,578 
Net Income $7,212 $7,006  $2,762 $27,627  $16,271 
             
Basic earnings per common share $0.61 $0.68  $0.28 $2.62  $1.67 
Diluted earnings per common share $0.59 $0.65  $0.27 $2.52  $1.59 
             

 

Revere Bank
Average Balance Sheets, Interest and Rate
(dollars in thousands)
(Unaudited)
             
  Three Months Ended December 31, 2018 Three Months Ended December 31, 2017
  Average
Balance
(1)
 Interest
Income-
Expense
 Average
Yields/ 
Rates
 Average
Balance
(1)
 Interest
Income-
Expense
 Average
Yields/ 
Rates
Assets            
Loans, net (2) $2,026,586 $27,580 5.40% $1,788,400 $22,467 4.98%
Securities (3)  175,728  1,045 2.36%  164,616  808 1.95%
Federal funds sold and other (4)  139,202  897 2.56%  45,035  191 1.68%
Total interest-earnings assets  2,341,516  29,522 5.00%  1,998,051  23,466 4.66%
Less: Allowance for loan losses  17,845      14,808    
Other assets  71,751      108,837    
Total Assets $2,395,422     $2,092,080    
             
Liabilities & Stockholders' Equity            
Interest-bearing deposits $1,653,913  6,594 1.58% $1,441,802  3,802 1.05%
Federal Home Loan Bank advances  69,587  304 1.73%  86,700  279 1.28%
Subordinated debt  30,699  466 6.02%  30,594  462 5.99%
Other borrowed funds  -  - 0.00%  -  - 0.00%
Total interest-bearing liabilities  1,754,199  7,364 1.67%  1,559,096  4,543 1.16%
Non-interest-bearing demand deposits  372,326      335,913    
Other liabilities  7,652      7,436    
Total Liabilities  2,134,177      1,902,445    
Stockholders' Equity  261,245      189,635    
Total Liabilities & Stockholders' Equity $2,395,422     $2,092,080    
             
Net interest income and margin (5) (6)   $22,158 3.75%   $18,923 3.76%
             
  Three Months Ended September 30, 2018  
  Average
Balance
(1)
 Interest
Income-
Expense
 Average
Yields/ 
Rates
      
Assets            
Loans, net (2) $1,969,777 $25,933 5.22%      
Securities (3)  166,094  929 2.22%      
Federal funds sold and other (4)  106,801  541 2.01%      
Total interest-earnings assets  2,242,672  27,403 4.85%      
Less: Allowance for loan losses  17,180          
Other assets  70,342          
Total Assets $2,295,834          
             
Liabilities & Stockholders' Equity            
Interest-bearing deposits $1,589,091  5,625 1.40%      
Federal Home Loan Bank Advances  100,253  471 1.86%      
Subordinated debt  30,673  463 5.99%      
Other borrowed funds  -  - 0.00%      
Total interest-bearing liabilities  1,720,017  6,559 1.51%      
Non-interest-bearing demand deposits  355,627          
Other liabilities  6,359          
Total Liabilities  2,082,003          
Stockholders' Equity  213,831          
Total Liabilities & Stockholders' Equity $2,295,834          
             
Net interest income and margin (5) (6)   $20,844 3.69%      
             
(1) Average balances are computed on a daily basis.
(2) Loans are presented net of average non-accrual loans for the period and unearned revenue.
(3) Includes securities available-for-sale.
(4) Includes federal funds sold, FHLB stock and interest-bearing deposits at other banks.
(5) Total interest income less total interest expense.
(6) Net interest margin is net interest income, expressed as a percentage of average interest-earning assets.
             

 

Revere Bank
Average Balance Sheets, Interest and Rate
(dollars in thousands)
(Unaudited)
             
  Twelve Months Ended December 31, 2018 Twelve Months Ended December 31, 2017
  Average
Balance
(1)
 Interest
Income-
Expense
 Average
Yields/ 
Rates
 Average
Balance
(1)
 Interest
Income-
Expense
 Average
Yields/ 
Rates
Assets            
Loans, net (2) $1,938,864 $101,243 5.22% $1,698,458 $84,590 4.98%
Securities (3)  167,162  3,691 2.21%  155,955  2,965 1.90%
Federal funds sold and other (4)  92,532  2,039 2.20%  58,594  833 1.42%
Total interest-earning assets  2,198,558  106,973 4.87%  1,913,007  88,388 4.62%
Less: Allowance for loan losses  16,598      13,660    
Other assets  75,861      106,933    
Total Assets $2,257,821     $2,006,280    
             
Liabilities & Stockholders' Equity            
Interest-bearing deposits $1,569,552  20,972 1.34% $1,389,169  13,691 0.99%
Federal Home Loan Bank advances  80,652  1,304 1.62%  86,927  1,001 1.15%
Subordinated debt  30,660  1,855 6.05%  30,557  1,841 6.02%
Other borrowed funds  -  - 0.00%  1  - 1.30%
Total interest-bearing liabilities  1,680,864  24,131 1.44%  1,506,654  16,533 1.10%
Non-interest-bearing demand deposits  352,485      312,239    
Other liabilities  7,413      6,804    
Total Liabilities  2,040,762      1,825,697    
Stockholders' Equity  217,059      180,583    
Total Liabilities & Stockholders' Equity $2,257,821     $2,006,280    
             
Net interest income and margin (5) (6)   $82,842 3.77%   $71,855 3.76%
             
(1) Average balances are computed on a daily basis.
(2) Loans are presented net of average non-accrual loans for the period and unearned revenue.
(3) Includes securities available-for-sale.
(4) Includes federal funds sold, FHLB stock and interest-bearing deposits at other banks.
(5) Total interest income less total interest expense.
(6) Net interest margin is net interest income, expressed as a percentage of average interest-earning assets.

 

Revere Bank
Financial Highlights
(dollars in thousands, except share data)
(Unaudited)
 
  At or For the Three Months Ended At or For the Twelve Months Ended
  12/31/2018 9/30/2018 12/31/2017 12/31/2018 12/31/2017
Per share Data and Shares Outstanding          
Earnings per share - basic $0.61  $0.68  $0.28  $2.62  $1.67 
Earnings per share - diluted $0.59  $0.65  $0.27  $2.52  $1.59 
Tangible book value per share (1) $19.84  $19.09  $15.94  $19.84  $15.94 
Weighted-average common shares - basic  11,808,265   10,329,900   9,830,501   10,529,804   9,736,916 
Weighted-average common shares - diluted  12,162,327   10,705,221   10,353,288   10,943,945   10,235,304 
Common shares outstanding at end of period  11,817,361   11,803,007   9,854,488   11,817,361   9,854,488 
           
Performance Ratios          
Return on average assets (annualized)  1.19%  1.21%  0.52%  1.22%  0.81%
Return on average equity (annualized)  10.95%  13.00%  5.78%  12.73%  9.01%
Yield on interest-earning assets (annualized)  5.00%  4.85%  4.66%  4.87%  4.62%
Cost of interest-bearing liabilities (annualized)  1.67%  1.51%  1.16%  1.44%  1.10%
Net interest margin (annualized)  3.75%  3.69%  3.76%  3.77%  3.76%
Efficiency ratio (2)  50.61%  52.53%  52.93%  51.65%  55.38%
           
Asset Quality          
Loans 30-89 days past due and accruing interest $793  $1,177  $575  $793  $575 
Loans 30-89 days past due and accruing interest to total assets  0.03%  0.05%  0.03%  0.03%  0.03%
Non-accrual loans $2,025  $1,809  $2,206  $2,025  $2,206 
Other real estate owned $-  $-  $-  $-  $- 
Non-performing assets (3) $2,025  $1,809  $2,206  $2,025  $2,206 
Non-performing assets to total assets (3)  0.08%  0.08%  0.11%  0.08%  0.11%
Allowance for loan losses to total loans  0.90%  0.88%  0.82%  0.90%  0.82%
Allowance for loan losses to non-performing loans  9.2   9.7   6.7   9.2   6.7 
Net loan charge-offs (recoveries) $147  $-  $265  $204  $550 
           
Regulatory Capital Ratios          
Total risk-based capital ratio  13.77%  13.85%  11.21%  13.77%  11.21%
Tier 1 risk-based capital ratio  11.40%  11.45%  8.73%  11.40%  8.73%
Tier 1 leverage ratio  10.03%  10.11%  7.75%  10.03%  7.75%
Common equity tier 1 ratio  11.40%  11.45%  8.73%  11.40%  8.73%
Tangible stockholders' equity to tangible assets (1)  9.67%  9.85%  7.60%  9.67%  7.60%
           
Other Information          
Number of full time employees  226   229   205   226   205 
# Full service branch offices  11   11   11   11   11 
           
(1)  Tangible common equity, tangible assets, tangible common equity to tangible assets and tangible book value per common share are non-GAAP financial measures. Tangible common equity is computed as total stockholders’ equity excluding intangible assets and goodwill. Tangible assets is computed as total assets excluding intangible assets and goodwill. Tangible common equity to tangible assets is the ratio of tangible common equity to tangible assets.  Tangible book value per common share is computed by dividing the total tangible common equity by the common shares issued and outstanding. The following tables provide a reconciliation of total stockholders’ to tangible common equity and a reconciliation of total assets to tangible assets.
  12/31/2018 9/30/2018 12/31/2017    
           
Total stockholders' equity - GAAP $264,891  $255,905  $188,277     
Less:          
Goodwill  26,815   26,815   26,815     
Core deposits intangible  3,627   3,804   4,337     
           
Tangible stockholders' equity (non-GAAP) $234,449  $225,286  $157,125     
           
Total assets - GAAP  2,455,211   2,317,700   2,098,845     
Less:          
Goodwill  26,815   26,815   26,815     
Core deposits intangible  3,627   3,804   4,337     
           
Total tangible assets (non-GAAP) $2,424,769  $2,287,081  $2,067,693     
           
Tangible common equity to total tangible assets ratio (non-GAAP)  9.67%  9.85%  7.60%    
           
Common shares outstanding  11,817,361   11,803,007   9,854,488     
           
Tangible book value per share (non-GAAP) $19.84  $19.09  $15.94     
(2) Efficiency ratio is non-interest expense divided by the sum of net interest income and non-interest income.
(3) Non-performing assets consist of non-accrual loans, loans 90 days or more past due and still accruing interest, and other real estate owned.