ANCHORAGE, Alaska, Oct. 30, 2017 (GLOBE NEWSWIRE) -- Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the "Company") today reported net income attributable to the Company ("net income") was $5.5 million, or $0.79 per diluted share, in the third quarter of 2017, compared to $3.1 million, or $0.44 per diluted share, in the third quarter of 2016, and $3.6 million, or $0.51 per diluted share, in the second quarter of 2017. For the first nine months of 2017, net income was $12.9 million, or $1.85 per diluted share, compared to $10.8 million, or $1.55 per diluted share, in the first nine months of 2016. The increase in profitability for the quarter and year-to-date compared to prior periods was primarily due to the $4.4 million gain from the sale of the Company's interest in Northrim Benefits Group (“NBG”). This increase was partially offset by a higher provision for loan losses in the third quarter of 2017. In addition, mortgage banking income for the third quarter and year-to-date in 2017 decreased due to the slowing Alaska economy as compared to 2016.
Several items impacted the quarterly and year-to-date comparisons including:
- The sale of Northrim’s interest in NBG contributed $4.4 million pretax and $2.6 million after tax, or $0.38 per diluted share, to third quarter 2017 profits. This gain represents approximately 7 times 2016 net profits from NBG. Net income for the third quarter of 2017 also includes 2 months of income from NBG.
- The third quarter 2017 provision for loan losses was $2.5 million compared to $300,000 in the preceding quarter and $652,000 in the year ago quarter. The increase in the provision for loan losses in the third quarter of 2017 is the result of an increase in specific impairment of $1.1 million, primarily due to one $2.9 million commercial relationship in the medical industry that was added to nonaccrual loans during the quarter, as well as an increase in the qualitative factors included in the allowance for loan losses. The allowance for loan losses is $21.5 million at September 30, 2017, which equates to 95% of total nonperforming loans at September 30, 2017.
- The Company's conversion to a new core banking system was successfully completed in May of 2017. The conversion added one-time costs of $179,000, or $0.03 per diluted share in the third quarter of 2017 and $943,000, or $0.14 per diluted share year-to-date through September of 2017.
- The third quarter of 2016 includes a non-cash, one-time accounting correction which resulted in an increase in expenses, net of tax, of $1.4 million, or $0.20 per diluted share due to a change in accounting treatment for the earn-out payments associated with the Company's 2014 acquisition of Residential Mortgage Lending, LLC, (“RML”).
Other highlights for the third quarter of 2017 include the following:
- The Company repurchased 58,341 shares of its common stock at an average price of $27.56, leaving 168,901 shares available under the previously announced repurchase authorization.
- The Company redeemed $8.0 million in junior subordinated debt held at Northrim Capital Trust 1. This liability bore interest at a floating rate of 90-day LIBOR plus 3.15%, or 4.33% at the time it was redeemed, and had a final maturity of May 15, 2033. In 2016, total interest expense on this debt was $310,000. Interest expense on this debt in 2017 through the date of redemption on August 15, 2017 was $212,000. This redemption decreased Tier 1 Capital to Risk Adjusted Assets and Total Capital to Risk Adjusted Assets by 62 basis points each.
- The Company executed an interest rate swap in September 2017, which effectively converts the floating rate of interest on the Company's remaining $10.0 million in junior subordinated debt from 90-day LIBOR plus 1.37%, or 2.69% as of September 30, 2017, to a fixed rate of 3.72% through the instrument's final maturity date of March 15, 2036.
“We continue to build our infrastructure to position the Company for future growth and to achieve operating efficiencies, and the completion of our core conversion last quarter is part of this overall strategy,” said Joe Schierhorn, President and CEO. “While growth of both loans and deposits is a challenge in the current economic environment in Alaska, we believe that ongoing investments in systems, infrastructure, and people better position us to take advantage of growth opportunities as they arise over time either from improvements in the economy of Alaska or from competitive factors that we act upon to increase our market share organically, or through mergers and acquisitions. However, in light of our estimates for lower growth in the short term coupled with our current capital position, we executed stock buybacks for the first time in ten years in the third quarter of 2017."
| Financial Highlights | Three Months Ended | ||||||||||||||
| (Dollars in thousands, except per share data) | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||
| Total assets | $ | 1,523,341 | $ | 1,493,205 | $ | 1,512,580 | $ | 1,526,540 | $ | 1,540,120 | |||||
| Total portfolio loans | $ | 989,253 | $ | 991,209 | $ | 960,832 | $ | 975,015 | $ | 997,076 | |||||
| Average portfolio loans | $ | 1,003,751 | $ | 969,051 | $ | 970,493 | $ | 977,678 | $ | 979,164 | |||||
| Total deposits | $ | 1,258,317 | $ | 1,234,310 | $ | 1,247,073 | $ | 1,267,653 | $ | 1,278,366 | |||||
| Average deposits | $ | 1,262,808 | $ | 1,244,583 | $ | 1,230,947 | $ | 1,265,214 | $ | 1,263,750 | |||||
| Total shareholders' equity | $ | 194,427 | $ | 191,777 | $ | 189,452 | $ | 186,712 | $ | 185,758 | |||||
| Net income attributable to Northrim BanCorp | $ | 5,523 | $ | 3,589 | $ | 3,825 | $ | 3,590 | $ | 3,095 | |||||
| Diluted earnings per share | $ | 0.79 | $ | 0.51 | $ | 0.55 | $ | 0.51 | $ | 0.44 | |||||
| Return on average assets | 1.44 | % | 0.96 | % | 1.04 | % | 0.94 | % | 0.81 | % | |||||
| Return on average shareholders' equity | 11.25 | % | 7.43 | % | 8.30 | % | 7.96 | % | 6.73 | % | |||||
| Net interest margin ("NIM") | 4.28 | % | 4.20 | % | 4.15 | % | 4.01 | % | 4.11 | % | |||||
| Tax equivalent NIM* | 4.34 | % | 4.26 | % | 4.22 | % | 4.07 | % | 4.17 | % | |||||
| Efficiency ratio | 61.31 | % | 76.95 | % | 72.95 | % | 75.57 | % | 80.89 | % | |||||
| Total shareholders' equity/total assets | 12.76 | % | 12.84 | % | 12.53 | % | 12.23 | % | 12.06 | % | |||||
| Tangible common equity/tangible assets* | 11.82 | % | 11.88 | % | 11.57 | % | 11.28 | % | 11.12 | % | |||||
| Book value per share | $ | 28.37 | $ | 27.75 | $ | 27.42 | $ | 27.07 | $ | 26.99 | |||||
| Tangible book value per share* | $ | 26.00 | $ | 25.40 | $ | 25.06 | $ | 24.70 | $ | 24.61 | |||||
| Dividends per share | $ | 0.22 | $ | 0.21 | $ | 0.21 | $ | 0.20 | $ | 0.20 | |||||
* References to tax equivalent NIM, tangible book value per share, tangible common equity and tangible assets (all of which exclude intangible assets) represent non-GAAP financial measures. Management has presented these non-GAAP measurements in this earnings release, because it believes these measures are useful to investors. See the end of this release for reconciliations of these measures to GAAP financial measures.
- Total revenues, which include net interest income plus total other operating income, increased to $28.7 million in the third quarter of 2017, compared to $24.0 million in the second quarter of 2017, and $26.1 million in the same period a year ago. Excluding the gains from the sale of the Company's interest in NBG, revenues increased 1% in the third quarter and declined 7% year over year.
- Community Banking contributed 77% to total revenues and 86% to earnings in the third quarter.
- Home Mortgage Lending contributed 23% to total revenues and 14% of earnings in the third quarter.
- Net interest income in the third quarter of 2017 increased 5% to $14.9 million as compared to both the preceding quarter and the same quarter a year ago, mainly as a result of improved mix of assets due to higher average portfolio loans in the third quarter of 2017.
- Both net interest margin ("NIM") at 4.28% and net interest margin on a tax equivalent basis ("NIMTE")* at 4.34% increased in the third quarter of 2017, compared to the second quarter of 2017, primarily due to an improved mix of assets in the current quarter. The Company's NIMTE* remains above peer averages1.
- Northrim paid a quarterly cash dividend of $0.22 per share in September 2017, up from the $0.20 per share dividend paid in September 2016. The dividend provides an annual yield of approximately 2.5% at current market share prices.
- Book value per share increased 5% to $28.37 at the end of the third quarter of 2017 from $26.99 a year ago, while tangible book value per share* increased 6% to $26.00 at the end of the third quarter of 2017 from $24.61 a year ago.
- Asset quality declined in the third quarter of 2017 as compared to prior periods due to a single $2.9 million lending relationship in the medical industry that moved to nonaccrual status.
- Following net charge-offs of $1.1 million and the $2.5 million provision for loan losses in the third quarter of 2017, the allowance for loan losses to portfolio loans grew to 2.17% at quarter end, compared to 1.95% a year ago.
- Northrim remains well-capitalized with Tier 1 Capital to Risk Adjusted Assets of 13.50%, total shareholders' equity to total assets of 12.76%, and tangible common equity to tangible assets* of 11.82% at September 30, 2017.
1As of June 30, 2017, the SNL US Bank Index tracked 151 banks with assets between $1 billion and $5 billion with averages for the following ratios: NIM (tax equivalent) 3.65%, loan loss reserves to gross loans of 0.95%, return on average assets (ROAA) 0.97%, and return on average equity (ROAE) 8.99%.
Alaska Economic Update
(Note: sources for information included in this section are included on page 12.)
Alaska’s total employment was down by an estimated 1.3% in September compared to September 2016, a loss of about 4,600 jobs. Over-the-year job losses have gradually gotten smaller in 2017, however. The largest losses during the current downturn were in the fall of 2016 at a decrease of 2.6%.
Oil and gas employment and construction were both down 6.7%. The only industries to add jobs were health care (1.4%), leisure and hospitality (0.3%), and local government (0.2 %). Federal employment was flat, and other industries showed mostly modest losses.
Seasonally adjusted unemployment in August was 7.2% compared to 4.4% for the United States. Not seasonally adjusted unemployment in Alaska in August was 6.3% compared to 4.5% for the nation, placing Alaska at 50th in the country for both unemployment and job growth. However, Alaska did rank 8th on per capita personal income, 9th for average hourly earnings in the private sector and 10th for average hourly earnings in the leisure and hospitality sectors.
While winter brings reduced activity in the tourism and construction industries, it also brings increased activity on the North Slope as the roadways freeze, allowing the movement of heavy equipment and people into the region.
Armstrong Energy has announced proposed plans to continue drilling delineation wells in the Nanushuk project which is located between Conoco Phillips' Alpine and Kuparuk River fields in the Pikka Unit. Armstrong Energy indicates the Nanushuk project could produce as much as 120,000 barrels of crude oil per day and is estimated to contain up to 1.2 billion barrels of proven recoverable reserves.
ConocoPhillips announced its Willow discovery, a 300 million-barrel recoverable Nanushuk find west of the Alpine field in the National Petroleum Reserve-Alaska. In addition, ConocoPhillips Alaska is planning its most ambitious exploration program in years, and the effort could provide more details about a newly promising North Slope discovery. “The plans, if completed, will represent the most exploration wells drilled per year by the company in 15 years,” said Joe Marushack, president of ConocoPhillips Alaska.
Hilcorp Energy has proposed its Liberty project, which would produce about 60,000 barrels of oil per day from a manmade island in shallow federal waters just offshore from Prudhoe Bay.
For the first time in many years, throughput on the Alyeska pipeline increased in 2016 by 2% to 185.5 million barrels a year.
“We believe that these planned new projects in the oil and gas industry will help stabilize the state’s economy, providing high-paying jobs and new tax revenues for the state and local communities,” said Schierhorn.
Northrim Bank sponsors the Alaskanomics blog to provide news, analysis, and commentary on Alaska’s economy. Join the conversation at Alaskanomics.com, or for more information on the Alaska economy, visit: www.northrim.com and click on the “Business Banking” link and then click “Learn”. Information from our website is not incorporated into, and does not form a part of this press release.
Review of Income Statement
Consolidated Income Statement
In the third quarter of 2017, Northrim generated return on average assets ("ROAA") of 1.44% and a return on average equity ("ROAE") of 11.25%. Excluding the gain on the sale of the Company's interest in NBG, ROAA was 0.76% and ROAE was 5.92% in the third quarter of 2017, which is below the average 0.97% ROAA and the 8.99% ROAE posted by the 151 banks that make up the SNL U.S. Bank Index with assets between $1 billion and $5 billion as of June 30, 2017. The primary reason for this shortfall compared to peers is the larger provision for loan losses in the third quarter of 2017. NIM and NIMTE* for the third quarter of 2017 were 4.28% and 4.34%, respectively, compared to 3.65% NIMTE* for the index peers1.
For the first nine months of 2017, ROAA was 1.15% and ROAE was 9.02%, compared to 0.96% and 7.93%, respectively, for the same period in 2016. Excluding the gain on the sale of the Company's interest in NBG in 2017 and the one-time accounting adjustment related to the acquisition of RML in 2016, ROAA was 0.92% and ROAE was 7.19% for the first nine months of 2017 compared to 1.10% and 9.07%, respectively, for the same period in 2016. The decline in ROAA and ROAE excluding the one-time items is primarily due to lower net income from the Home Mortgage Lending segment, the increase in the provision for loan losses, and one-time conversion costs incurred in 2017.
Net Interest Income/Net Interest Margin
Net interest income grew 5% to $14.9 million in the third quarter of 2017 compared to $14.2 million in the both the second quarter of 2017 and the third quarter a year ago. For the first nine months of 2017, net interest income increased 1% to $43.0 million from $42.5 million in the first nine months of 2016. Higher total interest income, coupled with lower total interest expense, contributed to net interest income expansion for both the quarter and year-to-date periods. Average portfolio loan balances increased 4% in the third quarter of 2017 compared to the preceding quarter and increased 3% compared to the same quarter last year, which improved the mix of earning assets and positively impacted yields. Increases in interest rates also contributed to the increases in net interest income and NIMTE* in the current quarter and year-to-date while cost of funds also declined in the quarter and year-over-year.
NIMTE* increased to 4.34% in the third quarter of 2017 compared to 4.26% in the preceding quarter and 4.17% from the same quarter a year ago. For the first nine months of 2017, NIMTE* improve to 4.28% from 4.24% in the first nine months of 2016. The following table summarizes the components of these changes:
| 3Q17 vs. 2Q17 | 3Q17 vs. 3Q16 | |||
| Nonaccrual interest adjustments | (0.02 | )% | (0.02 | )% |
| Interest rates and loan fees | 0.01 | % | 0.13 | % |
| Volume and mix of interest-earning assets | 0.09 | % | 0.06 | % |
| Change in NIMTE* | 0.08 | % | 0.17 | % |
| YTD17 vs.YTD16 | ||
| Nonaccrual interest adjustments | (0.01 | )% |
| Interest rates and loan fees | 0.05 | % |
| Volume and mix of interest-earning assets | — | % |
| Change in NIMTE* | 0.04 | % |
“The repayment of one of our higher-cost floating rate liabilities, completed in August of this year, is expected to reduce interest expense going forward by at least $300,000 per year, and the impact is higher in the future if interest rates continue to rise,” said Latosha Frye, Chief Financial Officer. “We believe the elimination of this interest expense will help to sustain or improve NIM in the coming quarters."
“We expect NIM will range from 4.20% to 4.30% and NIMTE* will range from 4.25% and 4.35% in the remainder of 2017, as we anticipate that our earning assets will continue to reprice higher and increases in deposit costs will lag these increases. We continue to believe that both our NIM and NIMTE* will benefit in the event interest rates rise or the yield curve steepens, and we would be adversely affected if interest rates fall and the yield curve continues to flatten,” Frye continued.
Provision for Loan Losses
The provision for loan losses was $2.5 million in the third quarter of 2017, compared to $300,000 in the second quarter of 2017, and $652,000 in the third quarter of 2016. For the first nine months of 2017, the provision for loan losses was $3.2 million compared to $1.6 million in the same period of 2016. “Total adversely classified loans, net of government guarantees, decreased to $33.8 million at September 30, 2017 from $41.5 million at September 30, 2016. Our assessment of the severity of credit issues for the largest relationships in this subset of our loan portfolio, however, has worsened, which led to higher net charge offs and an increase in the specific reserve in our allowance for loan losses in the third quarter of 2017,” said Frye. “Additionally, we have increased the qualitative factors due to continued softening in the Alaska economy, specifically due to continued job losses." According to the Alaska Department of Labor, Alaska lost 4,600 jobs, or 1.3% in September 2017 compared to September 2016. The allowance for loan losses to portfolio loans at the end of the third quarter of 2017 to 2.17% compared to 2.02% at June 20, 2017, and 1.95% at September 30, 2016. The allowance to loan losses is 95% of nonperforming loans, net of government guarantees, at September 30, 2017.
Other Operating Income
In addition to home mortgage lending, Northrim has interests in other businesses that complement its core community banking activities. It provides financial services to businesses and individuals through these interests, including purchased receivables financing and wealth management. In August 2017, Northrim sold its interest in NBG recognizing a gain of $4.4 million, or $2.6 million net of tax, which represents an estimated 7 years of future income from this business segment. In addition, revenues from two months prior to the sale contributed $609,000 to third quarter revenues. This income stream will not recur in future quarters. These complementary business activities, including home mortgage lending and other noninterest income, contributed $13.8 million, or 48% of total revenues in the third quarter of 2017, as compared to $9.7 million, or 41% of revenues in the second quarter of 2017 and $11.9 million, or 46% of revenues in the third quarter of 2016.
For the first nine months of 2017, other operating income decreased 2% to $32.4 million from $32.9 million for the first nine months of 2016. The decrease in other operating income for the first nine months of 2017 compared to the same period a year ago, is primarily due to a decline in mortgage banking income in 2017, partially offset by the gain on sale of the Company's interest in NBG.
Other Operating Expenses
Operating expenses were $17.6 million in the third quarter 2017, compared to $18.5 million in the second quarter of 2017 and $21.2 million in the third quarter of 2016. Items impacting the comparative periods include a decrease in variable costs commensurate with lower mortgage volume, the decrease in compensation expense related to the acquisition of RML due to lower expected earnings from this segment, and the fact that compensation expense related to the acquisition of RML was $2.3 million higher in the third quarter of 2016 due to the one-time noncash accounting adjustment. In addition, $633,000 of the one-time costs related to the core conversion were recorded in the second quarter of 2017 compared to $179,000 in the third quarter of 2017.
Operating expenses for the first nine months of 2017 decreased 9% to $52.7 million, from $57.9 million for the like period in 2017, primarily due to the accounting adjustment in 2016 related to the acquisition of RML as well as a decrease in salary and benefits costs primarily reflecting lower mortgage origination commissions and lower group medical expenses. These decreases were only partially offset by the $943,000 in one-time costs incurred in 2017 related to the core conversion.
Community Banking
“While the slowdown in the economy has impacted growth in both our loan and deposit portfolios, we believe the franchise remains positioned to capitalize on future market opportunities.” said Schierhorn. “With the renewed interest in development of the North Slope oil reserves, we are cautiously optimistic that we can offset the repayment of existing loans with renewals and new customer acquisition for both loans and deposits. Net interest income in the Community Banking segment increased 5% in the third quarter compared to the preceding quarter and the same quarter in 2016, demonstrating the strength of our core franchise."
Net income attributable to the Company in the Community Banking segment increased to $10.8 million in the first nine months of 2017 from $7.3 million in the first nine months of 2016, primarily due to the gain on the sale of NBG in 2017 and the accounting correction recorded in 2016, net of the increase in the provision for loan losses. One-time costs associated with the core conversion are included in the Community Banking segment.
The following table provides highlights of the Community Banking segment of Northrim:
| Three Months Ended | |||||||||||||||
| (Dollars in thousands, except per share data) | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||
| Net interest income | $ | 14,566 | $ | 13,952 | $ | 13,549 | $ | 13,584 | $ | 13,901 | |||||
| Provision for loan losses | 2,500 | 300 | 400 | 743 | 652 | ||||||||||
| Other operating income | 7,574 | 3,368 | 3,446 | 3,399 | 3,594 | ||||||||||
| Compensation expense, RML acquisition payments | 149 | — | 174 | 708 | 3,250 | ||||||||||
| Other operating expense | 12,191 | 13,240 | 11,613 | 12,151 | 11,649 | ||||||||||
| Income before provision for income taxes | 7,300 | 3,780 | 4,808 | 3,381 | 1,944 | ||||||||||
| Provision for income taxes | 2,452 | 871 | 1,422 | 727 | 50 | ||||||||||
| Net income | 4,848 | 2,909 | 3,386 | 2,654 | 1,894 | ||||||||||
| Less: net income attributable to the noncontrolling interest | 78 | 152 | 97 | 105 | 188 | ||||||||||
| Net income attributable to Northrim BanCorp | $ | 4,770 | $ | 2,757 | $ | 3,289 | $ | 2,549 | $ | 1,706 | |||||
| Average diluted shares | 6,959,035 | 6,997,727 | 6,993,726 | 6,983,771 | 6,973,354 | ||||||||||
| Diluted earnings per share | $ | 0.69 | $ | 0.39 | $ | 0.47 | $ | 0.36 | $ | 0.24 | |||||
| Year-to-date | |||||||||
| (Dollars in thousands, except per share data) | September 30, 2017 | September 30, 2016 | |||||||
| Net interest income | $ | 42,067 | $ | 41,663 | |||||
| Provision for loan losses | 3,200 | 1,555 | |||||||
| Other operating income | 14,388 | 10,357 | |||||||
| Compensation expense, RML acquisition payments | 323 | 4,067 | |||||||
| Other operating expense | 37,044 | 36,459 | |||||||
| Income before provision for income taxes | 15,888 | 9,939 | |||||||
| Provision for income taxes | 4,745 | 2,140 | |||||||
| Net income | 11,143 | 7,799 | |||||||
| Less: net income attributable to the noncontrolling interest | 327 | 474 | |||||||
| Net income attributable to Northrim BanCorp | $ | 10,816 | $ | 7,325 | |||||
| Average diluted shares | 6,983,778 | 6,968,557 | |||||||
| Diluted earnings per share | $ | 1.55 | $ | 1.05 | |||||
Home Mortgage Lending
“The decline in revenue and net income in the Home Mortgage Lending segment in 2017 is primarily the result of the general slowing of the Alaska economy, which has led to fewer mortgage originations,” said Frye. "Despite this decline, the housing market in Alaska remains healthy due to balanced supply and demand for homes in most price ranges, and we expect the Home Mortgage Lending segment to remain profitable despite the slowdown."
Northrim intends to continue to build its mortgage servicing business, which was initiated in the fourth quarter of 2015 to service loans for the Alaska Housing Finance Corporation. Northrim now services 1,462 loans in its $363.0 million home mortgage servicing portfolio, which continues to grow. Mortgage servicing income contributed $997,000 to third quarter of 2017 mortgage banking income, compared to $838,000 for the second quarter of 2017 and $948,000 in the third quarter a year ago. Total mortgage servicing income was reduced in both the third quarters of 2017 and 2016 by the change in fair value of its mortgage servicing rights which are driven by interest rate volatility and fluctuations in estimated prepayment speeds, which are based on industry averages.
The following table provides highlights of the Home Mortgage Lending segment of Northrim:
| Three Months Ended | |||||||||||||||
| (Dollars in thousands, except per share data) | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||
| Mortgage commitments | $ | 68,601 | $ | 80,068 | $ | 67,589 | $ | 62,421 | $ | 72,315 | |||||
| Mortgage loans funded for sale | $ | 162,470 | $ | 143,944 | $ | 115,058 | $ | 169,235 | $ | 224,594 | |||||
| Mortgage loan refinances to total fundings | 12 | % | 12 | % | 24 | % | 25 | % | 24 | % | |||||
| Mortgage loans serviced for others | $ | 362,983 | $ | 332,485 | $ | 307,502 | $ | 272,442 | $ | 231,167 | |||||
| Net realized gains on mortgage loans sold | $ | 5,218 | $ | 4,990 | $ | 3,721 | $ | 5,987 | $ | 7,502 | |||||
| Change in fair value of mortgage loan commitments, net | (23 | ) | 299 | 128 | (551 | ) | (331 | ) | |||||||
| Total production revenue | 5,195 | 5,289 | 3,849 | 5,436 | 7,171 | ||||||||||
| Mortgage servicing revenue | 997 | 838 | 1,153 | 1,194 | 948 | ||||||||||
| Change in fair value of mortgage servicing rights, net1 | (296 | ) | (48 | ) | 282 | (3 | ) | (166 | ) | ||||||
| Total mortgage servicing revenue, net | 701 | 790 | 1,435 | 1,191 | 782 | ||||||||||
| Other mortgage banking revenue | 323 | 272 | 166 | 333 | 388 | ||||||||||
| Total mortgage banking income | $ | 6,219 | $ | 6,351 | $ | 5,450 | $ | 6,960 | $ | 8,341 | |||||
| Net interest income | $ | 352 | $ | 291 | $ | 284 | $ | 307 | $ | 312 | |||||
| Provision for loan losses | — | — | — | — | — | ||||||||||
| Other operating income | 6,219 | 6,351 | 5,450 | 6,960 | 8,341 | ||||||||||
| Other operating expense | 5,290 | 5,226 | 4,819 | 5,495 | 6,287 | ||||||||||
| Income before provision for income taxes | 1,281 | 1,416 | 915 | 1,772 | 2,366 | ||||||||||
| Provision for income taxes | 528 | 584 | 379 | 731 | 977 | ||||||||||
| Net income attributable to Northrim BanCorp | $ | 753 | $ | 832 | $ | 536 | $ | 1,041 | $ | 1,389 | |||||
| Average diluted shares | 6,959,035 | 6,997,727 | 6,993,726 | 6,983,771 | 6,973,354 | ||||||||||
| Diluted earnings per share | $ | 0.11 | $ | 0.12 | $ | 0.08 | $ | 0.15 | $ | 0.20 | |||||
1Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates, net of collection/realization of expected cash flows over time.
| Year-to-date | |||||||||
| (Dollars in thousands, except per share data) | September 30, 2017 | September 30, 2016 | |||||||
| Mortgage loans funded for sale | $ | 421,472 | $ | 566,565 | |||||
| Mortgage loan refinances to total fundings | 15 | % | 20 | % | |||||
| Net realized gains on mortgage loans sold | $ | 13,929 | $ | 19,426 | |||||
| Change in fair value of mortgage loan commitments, net | 404 | 196 | |||||||
| Total production revenue | 14,333 | 19,622 | |||||||
| Mortgage servicing revenue | 2,988 | 2,517 | |||||||
| Change in fair value of mortgage servicing rights, net1 | (62 | ) | (523 | ) | |||||
| Total mortgage servicing revenue, net | 2,926 | 1,994 | |||||||
| Other mortgage banking revenue | 761 | 931 | |||||||
| Total mortgage banking income | $ | 18,020 | $ | 22,547 | |||||
| Net interest income | $ | 927 | $ | 803 | |||||
| Other operating income | 18,020 | 22,547 | |||||||
| Other operating expense | 15,335 | 17,400 | |||||||
| Income before provision for income taxes | 3,612 | 5,950 | |||||||
| Provision for income taxes | 1,491 | 2,454 | |||||||
| Net income attributable to Northrim BanCorp | $ | 2,121 | $ | 3,496 | |||||
| Average diluted shares | 6,983,778 | 6,968,557 | |||||||
| Diluted earnings per share | $ | 0.30 | $ | 0.50 | |||||
1Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates, net of collection/realization of expected cash flows over time.
Balance Sheet Review
Northrim’s assets were $1.52 billion at September 30, 2017, down 1.1% from the third quarter a year ago and up 2.0% from June 30, 2017. Average interest earnings assets increased 1.6% in the third quarter of 2017 to $1.38 billion and grew 0.57% from the third quarter a year ago.
Average investment securities decreased 12.5% in the third quarter of 2017 from the preceding quarter and 1.8% from a year ago. The investment portfolio generated an average net tax equivalent yield of 1.63% for the third quarter of 2017. The average estimated duration of the investment portfolio was 1.5 years, at September 30, 2017.
Average loans held for sale increased 40% to $57.4 million in the third quarter of 2017 compared to the preceding quarter and decreased 14% from the same quarter a year ago, primarily reflecting the seasonality of the mortgage business and the reduced demand for home loans in the Alaska marketplace.
Portfolio loans were down slightly to $989.3 million at the end of the third quarter of 2017 compared to both the preceding and year ago quarters. Average portfolio loans in the third quarter of 2017 were $1.00 billion, up 3.6% from the preceding quarter and up 2.5% from the third quarter a year ago. Increases in commercial and construction loans offset a modest decline in commercial real estate loans, both owner-occupied and non-owner-occupied properties. Construction and land development loans, increased 13% in the third quarter of 2017 compared to the previous quarter and 2% year-over-year. Commercial loans at September 30, 2017 grew 14% year-over-year. Additionally, non-owner occupied commercial real estate loans in the quarter were down 3.8% from the previous quarter but grew 1.7% year-over-year.
Alaskans account for substantially all of Northrim’s deposit base, which is primarily made up of low-cost transaction accounts. Balances in transaction accounts at September 30, 2017, represented 92% of total deposits. At September 30, 2017, total deposits were $1.26 billion, up slightly from $1.23 billion in the immediate prior quarter and down slightly from $1.28 billion from a year ago. Average total deposits were up 1% in the third quarter of 2017 compared to the preceding quarter and were essentially unchanged compared to the same quarter in 2016.
Shareholders’ equity increased 5% to $194.4 million, or $28.37 per share, at September 30, 2017, compared to $185.8 million, or $26.99 per share, a year ago. Tangible book value per share* was $26.00 at September 30, 2017, compared to $24.61 per share a year ago. Northrim continues to maintain capital levels in excess of the requirements to be categorized as “well-capitalized” under the Basel III and Dodd Frank regulatory standards with Tier 1 Capital to Risk Adjusted Assets of 13.50% at September 30, 2017. “The repayment of the $8 million in junior subordinated debt in August brought our capital ratios down, which is expected to improve profitability without reducing liquidity significantly,” said Schierhorn.
Asset Quality
Nonperforming assets, net of government guarantees increased to $26.2 million at September 30, 2017, compared to $12.1 million a year ago, due to three relationships: one $9.1 million commercial business, and two commercial relationships for $8.1 million and $2.9 million, respectively, in the medical industry. These three relationships represent 89% of total nonperforming loans, net of government guarantees, as of September 30, 2017. This increase in nonperforming assets was partially offset by pay downs on several loans, including a $2.1 million pay down on one $5.9 million land development loan that was moved to other real estate owned in the fourth quarter of 2016. The ratio of nonperforming assets to total assets, net of government guarantees was 1.72% for the third quarter of 2017, down from 1.73% in the second quarter of 2017 and up from 0.78% a year ago.
Adversely classified loans, net of government guarantees, were to $33.8 million at the end of the third quarter of 2017 as compared to $32.4 million at the end of the second quarter of 2017 and $41.5 million one year ago. Net charge-offs in the third quarter of 2017 were $1.1 million compared to $132,000 in the previous quarter and net recovery of $442,000 in the third quarter of 2016. “None of these charge-offs were related directly to the oil sector,” said Frye.
The following table details loan charge-offs, by industry:
| (Dollars in thousands) | Three Months Ended | ||||||||
| September 30, 2017 | June 30, 2017 | September 30, 2016 | |||||||
| Charge-offs: | |||||||||
| Transportation and warehousing | $ | 339 | $ | — | $ | — | |||
| Other services | 48 | — | — | ||||||
| Retail trade | — | 202 | — | ||||||
| News media | 731 | — | — | ||||||
| Consumer | 85 | 5 | 22 | ||||||
| Total charge-offs | $ | 1,203 | $ | 207 | $ | 22 | |||
Performing restructured loans that were not included in nonaccrual loans at the end of the third quarter 2017 were $7.7 million, up from $5.7 million at the end of the preceding quarter and down from $14.9 million a year ago. The increase in the third quarter of 2017 compared to the second quarter of 2017 is primarily due to the addition of one commercial loan. The decrease in the third quarter of 2017 compared to a year ago is primarily due to the $8.1 million commercial relationship noted above that moved to nonaccrual status in the fourth quarter of 2016. Borrowers who are in financial difficulty and who have been granted concessions that may include interest rate reductions, term extensions, or payment alterations are categorized as restructured loans. The Company presents restructured loans that are performing separately from those that are classified as nonaccrual to provide more information on this category of loans and to differentiate between accruing performing and nonperforming restructured loans.
Adversely classified loans are loans that Northrim has classified as substandard, doubtful, and loss, net of government guarantees. As of September 30, 2017, $30.8 million, or 91% of adversely classified loans net of government guarantees are attributable to six relationships in the following sectors; two commercial businesses, one commercial real estate property, two medical businesses, and one oilfield services commercial business.
Northrim estimates that $60.1 million, or approximately 6% of portfolio loans as of September 30, 2017, had direct exposure to the oil and gas industry in Alaska, and $4.2 million of these loans are adversely classified. Northrim has an additional $54.0 million in unfunded commitments to companies with direct exposure to the oil and gas industry in Alaska, and none of these unfunded commitments are considered to be adversely classified loans. “We continue to have no loans to oil producers or exploration companies,” added Frye “We define direct exposure to the oil and gas sector as loans to borrowers that provide oilfield services and other companies that we have identified as significantly reliant upon activity in Alaska related to the oil and gas industry, such as lodging, equipment rental, transportation and other logistics services specific to this industry.”
About Northrim BanCorp
Northrim BanCorp, Inc. is the parent company of Northrim Bank, an Alaska-based community bank with 14 branches in Anchorage, the Matanuska Valley, Juneau, Fairbanks, Ketchikan, and Sitka serving 90% of Alaska’s population; and an asset based lending division in Washington; and a wholly-owned mortgage brokerage company, Residential Mortgage Holding Company, LLC. The Bank differentiates itself with its detailed knowledge of Alaska’s economy and its “Customer First Service” philosophy. Pacific Wealth Advisors, LLC is an affiliated company of Northrim BanCorp.
Forward-Looking Statement
This release may contain “forward-looking statements” as that term is defined for purposes of Section 21E of the Securities Exchange Act of 1934. These statements are, in effect, management’s attempt to predict future events, and thus are subject to various risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. All statements, other than statements of historical fact, regarding our financial position, business strategy and management’s plans and objectives for future operations are forward-looking statements. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect,” and “intend” and words or phrases of similar meaning, as they relate to Northrim and its management are intended to help identify forward-looking statements. Although we believe that management’s expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward looking statements are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include: our ability to maintain strong asset quality and to maintain or expand our market share or net interest margins; and our ability to execute our business plan. Further, actual results may be affected by our ability to compete on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy as those factors relate to our cost of funds and return on assets. In addition, there are risks inherent in the banking industry relating to collectability of loans and changes in interest rates. Many of these risks, as well as other risks that may have a material adverse impact on our operations and business, are identified in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2016, and from time to time are disclosed in our other filings with the Securities and Exchange Commission. However, you should be aware that these factors are not an exhaustive list, and you should not assume these are the only factors that may cause our actual results to differ from our expectations. These forward-looking statements are made only as of the date of this release, and Northrim does not undertake any obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this release.
References:
http://labor.alaska.gov/news/2017/news17-38.pdf
http://www.labor.state.ak.us/trends/oct17.pdf
http://www.alaskajournal.com/2017-10-04/first-look-nanushuk-released#.Wd_vaGhSzD7
http://www.alyeska-pipe.com/TAPS/PipelineOperations/Throughput
https://www.adn.com/business-economy/energy/2017/10/13/conocophillips-plans-largest-exploration-season-in-15-years/
| Income Statement | |||||||||||||
| (Dollars in thousands, except per share data) | Three Months Ended | ||||||||||||
| (Unaudited) | September 30, | June 30, | Three Month | September 30, | Year-Over-Year | ||||||||
| 2017 | 2017 | % Change | 2016 | % Change | |||||||||
| Interest Income: | |||||||||||||
| Interest and fees on loans | $ | 14,341 | $ | 13,601 | 5 | % | $ | 13,866 | 3 | % | |||
| Interest on portfolio investments | 1,060 | 1,227 | -14 | % | 944 | 12 | % | ||||||
| Interest on deposits in banks | 118 | 64 | 84 | % | 50 | 136 | % | ||||||
| Total interest income | 15,519 | 14,892 | 4 | % | 14,860 | 4 | % | ||||||
| Interest Expense: | |||||||||||||
| Interest expense on deposits | 429 | 451 | -5 | % | 473 | -9 | % | ||||||
| Interest expense on borrowings | 173 | 197 | -12 | % | 174 | -1 | % | ||||||
| Total interest expense | 602 | 648 | -7 | % | 647 | -7 | % | ||||||
| Net interest income | 14,917 | 14,244 | 5 | % | 14,213 | 5 | % | ||||||
| Provision for loan losses | 2,500 | 300 | 733 | % | 652 | 283 | % | ||||||
| Net interest income after provision for loan losses | 12,417 | 13,944 | -11 | % | 13,561 | -8 | % | ||||||
| Other Operating Income: | |||||||||||||
| Mortgage banking income | 6,219 | 6,351 | -2 | % | 8,341 | -25 | % | ||||||
| Gain on sale of Northrim Benefits Group | 4,443 | — | NM | — | NM | ||||||||
| Employee benefit plan income | 609 | 961 | -37 | % | 999 | -39 | % | ||||||
| Purchased receivable income | 752 | 776 | -3 | % | 579 | 30 | % | ||||||
| Bankcard fees | 603 | 614 | -2 | % | 687 | -12 | % | ||||||
| Service charges on deposit accounts | 406 | 409 | -1 | % | 516 | -21 | % | ||||||
| Gain on sale of securities | (3 | ) | — | NM | — | NM | |||||||
| Other income | 765 | 607 | 26 | % | 813 | -6 | % | ||||||
| Total other operating income | 13,794 | 9,718 | 42 | % | 11,935 | 16 | % | ||||||
| Other Operating Expense: | |||||||||||||
| Salaries and other personnel expense | 11,115 | 11,793 | -6 | % | 12,158 | -9 | % | ||||||
| Occupancy expense | 1,706 | 1,664 | 3 | % | 1,567 | 9 | % | ||||||
| Data processing expense | 1,448 | 1,409 | 3 | % | 1,121 | 29 | % | ||||||
| Professional and outside services | 674 | 612 | 10 | % | 761 | -11 | % | ||||||
| Marketing expense | 332 | 891 | -63 | % | 500 | -34 | % | ||||||
| Insurance expense | 475 | 194 | 145 | % | 265 | 79 | % | ||||||
| OREO expense, net rental income and gains on sale | (44 | ) | 83 | -153 | % | (32 | ) | 38 | % | ||||
| Loss (gain) on disposal of premises and equipment | — | 83 | -100 | % | 6 | -100 | % | ||||||
| Intangible asset amortization expense | 26 | 27 | -4 | % | 35 | -26 | % | ||||||
| Compensation expense, RML acquisition payments | 149 | — | NM | 3,250 | -95 | % | |||||||
| Other operating expense | 1,749 | 1,710 | 2 | % | 1,555 | 12 | % | ||||||
| Total other operating expense | 17,630 | 18,466 | -5 | % | 21,186 | -17 | % | ||||||
| Income before provision for income taxes | 8,581 | 5,196 | 65 | % | 4,310 | 99 | % | ||||||
| Provision for income taxes | 2,980 | 1,455 | 105 | % | 1,027 | 190 | % | ||||||
| Net income | 5,601 | 3,741 | 50 | % | 3,283 | 71 | % | ||||||
| Less: Net income attributable to the noncontrolling interest | 78 | 152 | -49 | % | 188 | -59 | % | ||||||
| Net income attributable to Northrim BanCorp | $ | 5,523 | $ | 3,589 | 54 | % | $ | 3,095 | 78 | % | |||
| Basic EPS | $ | 0.80 | $ | 0.52 | 54 | % | $ | 0.45 | 78 | % | |||
| Diluted EPS | $ | 0.79 | $ | 0.51 | 55 | % | $ | 0.44 | 80 | % | |||
| Average basic shares | 6,872,273 | 6,910,679 | -1 | % | 6,882,482 | 0 | % | ||||||
| Average diluted shares | 6,959,035 | 6,997,727 | -1 | % | 6,973,354 | 0 | % | ||||||
| Income Statement | ||||||||
| (Dollars in thousands, except per share data) | Nine months ended September 30, | |||||||
| (Unaudited) | Year-Over-Year | |||||||
| 2017 | 2016 | % Change | ||||||
| Interest Income: | ||||||||
| Interest and fees on loans | $ | 41,180 | $ | 41,354 | 0 | % | ||
| Interest on portfolio investments | 3,466 | 2,904 | 19 | % | ||||
| Interest on deposits in banks | 230 | 138 | 67 | % | ||||
| Total interest income | 44,876 | 44,396 | 1 | % | ||||
| Interest Expense: | ||||||||
| Interest expense on deposits | 1,325 | 1,423 | -7 | % | ||||
| Interest expense on borrowings | 557 | 507 | 10 | % | ||||
| Total interest expense | 1,882 | 1,930 | -2 | % | ||||
| Net interest income | 42,994 | 42,466 | 1 | % | ||||
| Provision for loan losses | 3,200 | 1,555 | 106 | % | ||||
| Net interest income after provision for loan losses | 39,794 | 40,911 | -3 | % | ||||
| Other Operating Income: | ||||||||
| Mortgage banking income | 18,020 | 22,547 | -20 | % | ||||
| Gain on sale of Northrim Benefits Group | 4,443 | — | NM | |||||
| Employee benefit plan income | 2,506 | 2,899 | -14 | % | ||||
| Purchased receivable income | 2,217 | 1,644 | 35 | % | ||||
| Bankcard fees | 1,789 | 1,995 | -10 | % | ||||
| Service charges on deposit accounts | 1,254 | 1,525 | -18 | % | ||||
| Gain (loss) on sale of securities | 11 | (11 | ) | -200 | % | |||
| Other income | 2,168 | 2,305 | -6 | % | ||||
| Total other operating income | 32,408 | 32,904 | -2 | % | ||||
| Other Operating Expense: | ||||||||
| Salaries and other personnel expense | 33,750 | 35,420 | -5 | % | ||||
| Occupancy expense | 4,991 | 4,872 | 2 | % | ||||
| Data processing expense | 4,095 | 3,351 | 22 | % | ||||
| Marketing expense | 1,733 | 1,853 | -6 | % | ||||
| Professional and outside services | 1,908 | 2,252 | -15 | % | ||||
| Insurance expense | 922 | 844 | 9 | % | ||||
| OREO expense, net rental income and gains on sale | 216 | 70 | 209 | % | ||||
| Compensation expense - RML acquisition payments | 323 | 4,067 | -92 | % | ||||
| Intangible asset amortization expense | 79 | 106 | -25 | % | ||||
| Loss on disposal of premises and equipment | 3 | 365 | -99 | % | ||||
| Other operating expense | 4,682 | 4,726 | -1 | % | ||||
| Total other operating expense | 52,702 | 57,926 | -9 | % | ||||
| Income before provision for income taxes | 19,500 | 15,889 | 23 | % | ||||
| Provision for income taxes | 6,236 | 4,594 | 36 | % | ||||
| Net income | 13,264 | 11,295 | 17 | % | ||||
| Less: Net income attributable to the noncontrolling interest | 327 | 474 | -31 | % | ||||
| Net income attributable to Northrim BanCorp | $ | 12,937 | $ | 10,821 | 20 | % | ||
| Basic EPS | $ | 1.88 | $ | 1.57 | 20 | % | ||
| Diluted EPS | $ | 1.85 | $ | 1.55 | 19 | % | ||
| Average basic shares | 6,897,577 | 6,878,921 | 0 | % | ||||
| Average diluted shares | 6,983,778 | 6,968,557 | 0 | % | ||||
| Balance Sheet | |||||||||||||
| (Dollars in thousands) | |||||||||||||
| (Unaudited) | September 30, | June 30, | Three Month | September 30, | One Year | ||||||||
| 2017 | 2017 | % Change | 2016 | % Change | |||||||||
| Assets: | |||||||||||||
| Cash and due from banks | $ | 13,960 | $ | 25,187 | -45 | % | $ | 37,955 | -63 | % | |||
| Interest bearing deposits in other banks | 73,309 | 606 | 11,997 | % | 7,911 | 827 | % | ||||||
| Portfolio investments | 271,248 | 298,120 | -9 | % | 301,257 | -10 | % | ||||||
| Investment in Federal Home Loan Bank stock | 2,116 | 1,993 | 6 | % | 1,965 | 8 | % | ||||||
| Loans held for sale | 59,214 | 53,863 | 10 | % | 76,452 | -23 | % | ||||||
| Portfolio loans | 989,253 | 991,209 | — | % | 997,076 | -1 | % | ||||||
| Allowance for loan losses | (21,464 | ) | (20,061 | ) | 7 | % | (19,479 | ) | 10 | % | |||
| Net portfolio loans | 967,789 | 971,148 | 0 | % | 977,597 | -1 | % | ||||||
| Purchased receivables, net | 12,930 | 19,835 | -35 | % | 15,500 | -17 | % | ||||||
| Mortgage servicing rights | 6,181 | 5,828 | 6 | % | 3,196 | 93 | % | ||||||
| Other real estate owned, net | 3,505 | 4,315 | -19 | % | 2,824 | 24 | % | ||||||
| Premises and equipment, net | 40,046 | 39,997 | 0 | % | 39,102 | 2 | % | ||||||
| Goodwill and intangible assets | 16,245 | 16,271 | 0 | % | 16,354 | -1 | % | ||||||
| Other assets | 56,798 | 56,042 | 1 | % | 60,007 | -5 | % | ||||||
| Total assets | $ | 1,523,341 | $ | 1,493,205 | 2 | % | $ | 1,540,120 | -1 | % | |||
| Liabilities: | |||||||||||||
| Demand deposits | $ | 426,946 | $ | 395,310 | 8 | % | $ | 474,971 | -10 | % | |||
| Interest-bearing demand | 240,274 | 231,073 | 4 | % | 194,426 | 24 | % | ||||||
| Savings deposits | 251,266 | 249,275 | 1 | % | 236,821 | 6 | % | ||||||
| Money market deposits | 233,768 | 231,780 | 1 | % | 242,102 | -3 | % | ||||||
| Time deposits | 106,063 | 126,872 | -16 | % | 130,046 | -18 | % | ||||||
| Total deposits | 1,258,317 | 1,234,310 | 2 | % | 1,278,366 | -2 | % | ||||||
| Securities sold under repurchase agreements | 31,084 | 24,392 | 27 | % | 27,701 | 12 | % | ||||||
| Other borrowings | 7,387 | 4,314 | 71 | % | 4,350 | 70 | % | ||||||
| Junior subordinated debentures | 10,310 | 18,558 | -44 | % | 18,558 | -44 | % | ||||||
| Other liabilities | 21,816 | 19,854 | 10 | % | 25,387 | -14 | % | ||||||
| Total liabilities | 1,328,914 | 1,301,428 | 2 | % | 1,354,362 | -2 | % | ||||||
| Shareholders' Equity: | |||||||||||||
| Northrim BanCorp shareholders' equity | 194,427 | 191,644 | 1 | % | 185,310 | 5 | % | ||||||
| Noncontrolling interest | — | 133 | -100 | % | 448 | -100 | % | ||||||
| Total shareholders' equity | 194,427 | 191,777 | 1 | % | 185,758 | 5 | % | ||||||
| Total liabilities and shareholders' equity | $ | 1,523,341 | $ | 1,493,205 | 2 | % | $ | 1,540,120 | -1 | % | |||
Additional Financial Information
(Dollars in thousands)
(Unaudited)
| Composition of Portfolio Investments | |||||||||||||||||
| September 30, 2017 | June 30, 2017 | September 30, 2016 | |||||||||||||||
| Balance | % of total | Balance | % of total | Balance | % of total | ||||||||||||
| U.S. Treasury securities | $ | 30,012 | 11.1 | % | $ | 30,039 | 10.1 | % | $ | 30,224 | 10.0 | % | |||||
| U.S. Agency securities | 179,088 | 65.9 | % | 206,042 | 69.1 | % | 215,282 | 71.5 | % | ||||||||
| U.S. Agency mortgage-backed securities | — | 0.0 | % | 1 | 0.0 | % | 4 | — | % | ||||||||
| Corporate bonds | 40,883 | 15.1 | % | 40,698 | 13.7 | % | 45,578 | 15.1 | % | ||||||||
| Collateralized loan obligations | 3,002 | 1.1 | % | 3,000 | 1.0 | % | — | — | % | ||||||||
| Alaska municipality, utility, or state bonds | 13,502 | 5.0 | % | 13,553 | 4.5 | % | 9,583 | 3.2 | % | ||||||||
| Other municipality, utility, or state bonds | 4,761 | 1.8 | % | 4,787 | 1.6 | % | 586 | 0.2 | % | ||||||||
| Total portfolio investments | $ | 271,248 | $ | 298,120 | $ | 301,257 | |||||||||||
| Composition of Portfolio Loans | |||||||||||||||||||||||||||||
| September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | |||||||||||||||||||||||||
| Balance | % of total | Balance | % of total | Balance | % of total | Balance | % of total | Balance | % of total | ||||||||||||||||||||
| Commercial loans | $ | 315,512 | 32 | % | $ | 309,493 | 31 | % | $ | 275,809 | 29 | % | $ | 278,178 | 28 | % | $ | 275,994 | 28 | % | |||||||||
| CRE owner occupied loans | 135,053 | 14 | % | 139,475 | 14 | % | 140,102 | 15 | % | 152,178 | 16 | % | 184,505 | 18 | % | ||||||||||||||
| CRE nonowner occupied loans | 386,294 | 39 | % | 401,662 | 40 | % | 408,472 | 41 | % | 402,003 | 41 | % | 379,913 | 38 | % | ||||||||||||||
| Construction loans | 111,427 | 11 | % | 98,713 | 10 | % | 94,004 | 10 | % | 98,220 | 10 | % | 109,093 | 11 | % | ||||||||||||||
| Consumer loans | 44,942 | 4 | % | 46,010 | 5 | % | 46,838 | 5 | % | 48,870 | 5 | % | 51,979 | 5 | % | ||||||||||||||
| Subtotal | 993,228 | 995,353 | 965,225 | 979,449 | 1,001,484 | ||||||||||||||||||||||||
| Unearned loan fees, net | (3,975 | ) | (4,144 | ) | (4,393 | ) | (4,434 | ) | (4,408 | ) | |||||||||||||||||||
| Total portfolio loans | $ | 989,253 | $ | 991,209 | $ | 960,832 | $ | 975,015 | $ | 997,076 | |||||||||||||||||||
| Composition of Deposits | |||||||||||||||||||||||||||||
| September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | |||||||||||||||||||||||||
| Balance | % of total | Balance | % of total | Balance | % of total | Balance | % of total | Balance | % of total | ||||||||||||||||||||
| Demand deposits | $ | 426,946 | 34 | % | $ | 395,310 | 32 | % | $ | 421,867 | 33 | % | $ | 449,206 | 36 | % | $ | 474,971 | 37 | % | |||||||||
| Interest-bearing demand | 240,274 | 19 | % | 231,073 | 19 | % | 194,414 | 16 | % | 201,349 | 16 | % | 194,426 | 15 | % | ||||||||||||||
| Savings deposits | 251,266 | 20 | % | 249,275 | 20 | % | 252,218 | 20 | % | 241,088 | 19 | % | 236,821 | 19 | % | ||||||||||||||
| Money market deposits | 233,768 | 19 | % | 231,780 | 19 | % | 244,881 | 20 | % | 244,295 | 19 | % | 242,102 | 19 | % | ||||||||||||||
| Time deposits | 106,063 | 8 | % | 126,872 | 10 | % | 133,693 | 11 | % | 131,715 | 10 | % | 130,046 | 10 | % | ||||||||||||||
| Total deposits | $ | 1,258,317 | $ | 1,234,310 | $ | 1,247,073 | $ | 1,267,653 | $ | 1,278,366 | |||||||||||||||||||
Additional Financial Information
(Dollars in thousands)
(Unaudited)
| Asset Quality | ||||||||||||
| September 30, | June 30, | September 30, | ||||||||||
| 2017 | 2017 | 2016 | ||||||||||
| Nonaccrual loans | $ | 24,317 | $ | 22,899 | $ | 10,885 | ||||||
| Loans 90 days past due and accruing | 214 | 468 | — | |||||||||
| Total nonperforming loans | 24,531 | 23,367 | 10,885 | |||||||||
| Nonperforming loans guaranteed by government | (1,846 | ) | (1,849 | ) | (1,624 | ) | ||||||
| Net nonperforming loans | 22,685 | 21,518 | 9,261 | |||||||||
| Other real estate owned | 3,505 | 4,315 | 2,824 | |||||||||
| Other real estate owned guaranteed by government | — | — | — | |||||||||
| Net nonperforming assets | $ | 26,190 | $ | 25,833 | $ | 12,085 | ||||||
| Nonperforming loans / portfolio loans, net of government guarantees | 2.29 | % | 2.17 | % | 0.93 | % | ||||||
| Nonperforming assets / total assets, net of government guarantees | 1.72 | % | 1.73 | % | 0.78 | % | ||||||
| Performing restructured loans | $ | 7,687 | $ | 5,678 | $ | 14,936 | ||||||
| Nonperforming loans plus performing restructured loans, net of government | ||||||||||||
| guarantees | $ | 30,372 | $ | 27,196 | $ | 24,197 | ||||||
| Nonperforming loans plus performing restructured loans / portfolio loans, net of | ||||||||||||
| government guarantees | 3.07 | % | 2.74 | % | 2.43 | % | ||||||
| Nonperforming assets plus performing restructured loans / total assets, net of | ||||||||||||
| government guarantees | 2.22 | % | 2.11 | % | 1.75 | % | ||||||
| Adversely classified loans, net of government guarantees | $ | 33,789 | $ | 32,440 | $ | 41,503 | ||||||
| Loans 30-89 days past due and accruing, net of government guarantees / | ||||||||||||
| portfolio loans | 0.70 | % | 0.14 | % | 0.10 | % | ||||||
| Allowance for loan losses / portfolio loans | 2.17 | % | 2.02 | % | 1.95 | % | ||||||
| Allowance for loan losses / nonperforming loans, net of government guarantees | 95 | % | 93 | % | 210 | % | ||||||
| Gross loan charge-offs for the quarter | $ | 1,203 | $ | 207 | $ | 22 | ||||||
| Gross loan recoveries for the quarter | ($106 | ) | ($75 | ) | ($464 | ) | ||||||
| Net loan charge-offs (recoveries) for the quarter | $ | 1,097 | $ | 132 | ($442 | ) | ||||||
| Net loan charge-offs year-to-date | $ | 1,433 | $ | 336 | $ | 229 | ||||||
| Net loan charge-offs for the quarter / average loans, for the quarter | 0.11 | % | 0.01 | % | (0.05 | ) | % | |||||
| Net loan charge-offs year-to-date / average loans, | ||||||||||||
| year-to-date annualized | 0.19 | % | 0.07 | % | 0.03 | % | ||||||
Additional Financial Information
(Dollars in thousands)
(Unaudited)
| Nonperforming Assets Rollforward | ||||||||||||||||||||||||
| Balance at | Additions | Payments | Writedowns | Transfers to | Transfers to | Sales | Balance at | |||||||||||||||||
| June 30, 2017 | this quarter | this quarter | /Charge-offs this quarter | OREO | Performing Status this quarter | this quarter | September 30, 2017 | |||||||||||||||||
| Commercial loans | $ | 22,882 | $ | 1,837 | ($682 | ) | ($1,118 | ) | $ | — | ($125 | ) | $ | — | $ | 22,794 | ||||||||
| Commercial real estate | 95 | 1,331 | — | — | — | — | (95 | ) | 1,331 | |||||||||||||||
| Construction loans | — | — | — | — | — | — | — | — | ||||||||||||||||
| Consumer loans | 390 | 124 | (23 | ) | (85 | ) | — | — | — | 406 | ||||||||||||||
| Non-performing loans guaranteed by government | (1,849 | ) | — | 3 | — | — | — | — | (1,846 | ) | ||||||||||||||
| Total non-performing loans | 21,518 | 3,292 | (702 | ) | (1,203 | ) | — | (125 | ) | (95 | ) | 22,685 | ||||||||||||
| Other real estate owned | 4,315 | — | — | (75 | ) | — | — | (735 | ) | 3,505 | ||||||||||||||
| Other real estate owned guaranteed | ||||||||||||||||||||||||
| by government | — | — | — | — | — | — | — | — | ||||||||||||||||
| Total non-performing assets, | ||||||||||||||||||||||||
| net of government guarantees | $ | 25,833 | $ | 3,292 | ($702 | ) | ($1,278 | ) | $ | — | ($125 | ) | ($830 | ) | $ | 26,190 | ||||||||
Additional Financial Information
(Dollars in thousands)
(Unaudited)
| Average Balances, Yields, and Rates | |||||||||||||||||
| Three Months Ended | |||||||||||||||||
| September 30, 2017 | June 30, 2017 | September 30, 2016 | |||||||||||||||
| Average | Average | Average | |||||||||||||||
| Average | Tax Equivalent | Average | Tax Equivalent | Average | Tax Equivalent | ||||||||||||
| Balance | Yield/Rate | Balance | Yield/Rate | Balance | Yield/Rate | ||||||||||||
| Assets | |||||||||||||||||
| Interest bearing deposits in other banks | $ | 37,349 | 1.24 | % | $ | 25,489 | 1.00 | % | $ | 39,762 | 0.49 | % | |||||
| Portfolio investments | 284,806 | 1.63 | % | 325,515 | 1.65 | % | 289,938 | 1.42 | % | ||||||||
| Loans held for sale | 57,346 | 3.74 | % | 40,906 | 3.88 | % | 66,606 | 3.51 | % | ||||||||
| Portfolio loans | 1,003,751 | 5.49 | % | 969,051 | 5.51 | % | 979,164 | 5.44 | % | ||||||||
| Total interest-earning assets | 1,383,252 | 4.51 | % | 1,360,961 | 4.45 | % | 1,375,470 | 4.35 | % | ||||||||
| Nonearning assets | 142,226 | 145,859 | 149,856 | ||||||||||||||
| Total assets | $ | 1,525,478 | $ | 1,506,820 | $ | 1,525,326 | |||||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||
| Interest-bearing deposits | $ | 839,743 | 0.20 | % | $ | 836,117 | 0.22 | % | $ | 800,441 | 0.23 | % | |||||
| Borrowings | 49,223 | 1.36 | % | 51,976 | 1.49 | % | 49,627 | 1.36 | % | ||||||||
| Total interest-bearing liabilities | 888,966 | 0.27 | % | 888,093 | 0.29 | % | 850,068 | 0.30 | % | ||||||||
| Noninterest-bearing demand deposits | 423,065 | 408,466 | 463,309 | ||||||||||||||
| Other liabilities | 18,744 | 16,605 | 29,030 | ||||||||||||||
| Shareholders' equity | 194,703 | 193,656 | 182,919 | ||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,525,478 | $ | 1,506,820 | $ | 1,525,326 | |||||||||||
| Net spread | 4.24 | % | 4.16 | % | 4.05 | % | |||||||||||
| Net interest margin ("NIM") | 4.28 | % | 4.20 | % | 4.11 | % | |||||||||||
| Tax equivalent NIM* | 4.34 | % | 4.26 | % | 4.17 | % | |||||||||||
| Average portfolio loans to average | |||||||||||||||||
| interest-earning assets | 72.56 | % | 71.20 | % | 71.19 | % | |||||||||||
| Average portfolio loans to average total deposits | 79.49 | % | 77.86 | % | 77.48 | % | |||||||||||
| Average non-interest deposits to average | |||||||||||||||||
| total deposits | 33.50 | % | 32.82 | % | 36.66 | % | |||||||||||
| Average interest-earning assets to average | |||||||||||||||||
| interest-bearing liabilities | 155.60 | % | 153.25 | % | 161.81 | % | |||||||||||
Additional Financial Information
(Dollars in thousands)
(Unaudited)
| Average Balances, Yields, and Rates | ||||||||||||||||||||||||
| Year-to-date | ||||||||||||||||||||||||
| September 30, 2017 | September 30, 2016 | |||||||||||||||||||||||
| Average | Average | |||||||||||||||||||||||
| Average | Tax Equivalent | Average | Tax Equivalent | |||||||||||||||||||||
| Balance | Yield/Rate | Balance | Yield/Rate | |||||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Interest bearing deposits in other banks | $ | 28,827 | 1.05 | % | $ | 36,989 | 0.49 | % | ||||||||||||||||
| Portfolio investments | 311,215 | 1.63 | % | 291,747 | 1.45 | % | ||||||||||||||||||
| Loans held for sale | 44,313 | 3.84 | % | 51,255 | 3.71 | % | ||||||||||||||||||
| Portfolio loans | 981,220 | 5.48 | % | 976,254 | 5.51 | % | ||||||||||||||||||
| Total interest-earning assets | 1,365,575 | 4.46 | % | 1,356,245 | 4.43 | % | ||||||||||||||||||
| Nonearning assets | 142,507 | 145,154 | ||||||||||||||||||||||
| Total assets | $ | 1,508,082 | $ | 1,501,399 | ||||||||||||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||||||
| Interest-bearing deposits | $ | 830,128 | 0.21 | % | $ | 803,724 | 0.24 | % | ||||||||||||||||
| Borrowings | 51,247 | 1.42 | % | 49,496 | 1.34 | % | ||||||||||||||||||
| Total interest-bearing liabilities | 881,375 | 0.28 | % | 853,220 | 0.30 | % | ||||||||||||||||||
| Noninterest-bearing demand deposits | 416,105 | 441,493 | ||||||||||||||||||||||
| Other liabilities | 18,800 | 24,323 | ||||||||||||||||||||||
| Shareholders' equity | 191,802 | 182,363 | ||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,508,082 | $ | 1,501,399 | ||||||||||||||||||||
| Net spread | 4.18 | % | 4.13 | % | ||||||||||||||||||||
| NIM | 4.21 | % | 4.18 | % | ||||||||||||||||||||
| NIMTE* | 4.28 | % | 4.24 | % | ||||||||||||||||||||
| Average portfolio loans to average interest-earning assets | 71.85 | % | 71.98 | % | ||||||||||||||||||||
| Average portfolio loans to average total deposits | 78.73 | % | 78.40 | % | ||||||||||||||||||||
| Average non-interest deposits to average total deposits | 33.39 | % | 35.46 | % | ||||||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 154.94 | % | 158.96 | % | ||||||||||||||||||||
| Capital Data (At quarter end) | |||||||||||||||
| September 30, 2017 | June 30, 2017 | September 30, 2016 | |||||||||||||
| Book value per share | $ | 28.37 | $ | 27.75 | $ | 26.99 | |||||||||
| Tangible book value per share* | $ | 26.00 | $ | 25.40 | $ | 24.61 | |||||||||
| Total shareholders' equity/total assets | 12.76 | % | 12.84 | % | 12.06 | % | |||||||||
| Tangible Common Equity/Tangible Assets* | 11.82 | % | 11.88 | % | 11.12 | % | |||||||||
| Tier 1 Capital / Risk Adjusted Assets | 13.50 | % | 14.98 | % | 14.24 | % | |||||||||
| Total Capital / Risk Adjusted Assets | 14.75 | % | 16.23 | % | 15.50 | % | |||||||||
| Tier 1 Capital / Average Assets | 11.54 | % | 12.97 | % | 12.36 | % | |||||||||
| Shares outstanding | 6,852,338 | 6,910,679 | 6,882,482 | ||||||||||||
| Unrealized gain (loss) on AFS securities, net of income taxes | $ | 147 | $ | 28 | $ | 637 | |||||||||
Additional Financial Information
(Dollars and shares in thousands)
(Unaudited)
| Profitability Ratios | ||||||||||||||||||||
| September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||||||||
| For the quarter: | ||||||||||||||||||||
| Net interest margin ("NIM") | 4.28 | % | 4.20 | % | 4.15 | % | 4.01 | % | 4.11 | % | ||||||||||
| Tax equivalent NIM* | 4.34 | % | 4.26 | % | 4.22 | % | 4.07 | % | 4.17 | % | ||||||||||
| Efficiency ratio | 61.31 | % | 76.95 | % | 72.95 | % | 75.57 | % | 80.89 | % | ||||||||||
| Return on average assets | 1.44 | % | 0.96 | % | 1.04 | % | 0.94 | % | 0.81 | % | ||||||||||
| Return on average equity | 11.25 | % | 7.43 | % | 8.30 | % | 7.96 | % | 6.73 | % | ||||||||||
| September 30, 2017 | September 30, 2016 | |||||||||||||
| Year-to-date: | ||||||||||||||
| NIM | 4.21 | % | 4.18 | % | ||||||||||
| NIMTE* | 4.28 | % | 4.24 | % | ||||||||||
| Efficiency ratio | 69.79 | % | 76.71 | % | ||||||||||
| Return on average assets | 1.15 | % | 0.96 | % | ||||||||||
| Return on average equity | 9.02 | % | 7.93 | % | ||||||||||
*Non-GAAP Financial Measures
(Dollars and shares in thousands, except per share data)
(Unaudited)
Tax equivalent NIM
Tax equivalent NIM is a non-GAAP performance measurement in which interest income on non-taxable investments and loans is presented on a tax equivalent basis using a combined federal and state statutory rate of 41.11% in both 2017 and 2016. The most comparable GAAP measure is net interest margin and the following table sets forth the reconciliation of tax equivalent NIM to net interest margin.
| Three Months Ended | ||||||||||||||||||||||||||||||||||||
| September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||||||||||||||||||||||||
| Net interest income | $ | 14,917 | $ | 14,244 | $ | 13,833 | $ | 13,891 | $ | 14,213 | ||||||||||||||||||||||||||
| Divided by average interest-bearing assets | 1,383,252 | 1,360,961 | 1,352,171 | 1,378,791 | 1,375,470 | |||||||||||||||||||||||||||||||
| Net interest margin ("NIM")2 | 4.28 | % | 4.20 | % | 4.15 | % | 4.01 | % | 4.11 | % | ||||||||||||||||||||||||||
| Net interest income | $ | 14,917 | $ | 14,244 | $ | 13,833 | $ | 13,891 | $ | 14,213 | ||||||||||||||||||||||||||
| Plus: reduction in tax expense related to | ||||||||||||||||||||||||||||||||||||
| tax-exempt interest income | 228 | 220 | 222 | 209 | 196 | |||||||||||||||||||||||||||||||
| $ | 15,145 | $ | 14,464 | $ | 14,055 | $ | 14,100 | $ | 14,409 | |||||||||||||||||||||||||||
| Divided by average interest-bearing assets | 1,383,252 | 1,360,961 | 1,352,171 | 1,378,791 | 1,375,470 | |||||||||||||||||||||||||||||||
| Tax equivalent NIM2 | 4.34 | % | 4.26 | % | 4.22 | % | 4.07 | % | 4.17 | % | ||||||||||||||||||||||||||
(Dollars and shares in thousands, except per share data)
(Unaudited)
| Year-to-date | ||||||||||||||||||||||||
| September 30, 2017 | September 30, 2016 | |||||||||||||||||||||||
| Net interest income | $ | 42,994 | $ | 42,466 | ||||||||||||||||||||
| Divided by average interest-bearing assets | 1,365,575 | 1,356,245 | ||||||||||||||||||||||
| Net interest margin ("NIM")3 | 4.21 | % | 4.18 | % | ||||||||||||||||||||
| Net interest income | $ | 42,994 | $ | 42,466 | ||||||||||||||||||||
| Plus: reduction in tax expense related to | ||||||||||||||||||||||||
| tax-exempt interest income | 670 | 599 | ||||||||||||||||||||||
| $ | 43,664 | $ | 43,065 | |||||||||||||||||||||
| Divided by average interest-bearing assets | 1,365,575 | 1,356,245 | ||||||||||||||||||||||
| Tax equivalent NIM3 | 4.28 | % | 4.24 | % | ||||||||||||||||||||
2Calculated using actual days in the quarter divided by 365 for quarters ended in 2017 and actual days in the quarter divided by 366 for quarters ended in 2016.
3Calculated using actual days in the year divided by 365 for year-to-date period ended in 2017 and actual days in the year divided by 366 for year-to-date period ended in 2016.
Tangible Book Value
Tangible book value is a non-GAAP measure defined as shareholders' equity, less intangible assets, divided by shares outstanding. The following table sets forth the reconciliation of tangible book value per share and book value per share.
| September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||||||||||||
| Total shareholders' equity | $ | 194,427 | $ | 191,777 | $ | 189,452 | $ | 186,712 | $ | 185,758 | ||||||||||||||
| Divided by shares outstanding | 6,852 | 6,911 | 6,910 | 6,898 | 6,882 | |||||||||||||||||||
| Book value per share | $ | 28.37 | $ | 27.75 | $ | 27.42 | $ | 27.07 | $ | 26.99 | ||||||||||||||
| September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||||||||||||
| Total shareholders' equity | $ | 194,427 | $ | 191,777 | $ | 189,452 | $ | 186,712 | $ | 185,758 | ||||||||||||||
| Less: goodwill and intangible assets | 16,245 | 16,271 | 16,298 | 16,324 | 16,354 | |||||||||||||||||||
| $ | 178,182 | $ | 175,506 | $ | 173,154 | $ | 170,388 | $ | 169,404 | |||||||||||||||
| Divided by shares outstanding | 6,852 | 6,911 | 6,910 | 6,898 | 6,882 | |||||||||||||||||||
| Tangible book value per share | $ | 26.00 | $ | 25.40 | $ | 25.06 | $ | 24.70 | $ | 24.61 | ||||||||||||||
(Dollars and shares in thousands, except per share data)
(Unaudited)
Tangible Common Equity to Tangible Assets
Tangible common equity to tangible assets is a non-GAAP ratio that represents total equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets. This ratio has received more attention over the past several years from stock analysts and regulators. The most comparable GAAP measure of shareholders' equity to total assets is calculated by dividing total shareholders' equity by total assets.
| September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||||||||||||
| Total shareholders' equity | $ | 194,427 | $ | 191,777 | $ | 189,452 | $ | 186,712 | $ | 185,758 | ||||||||||||||
| Total assets | 1,523,341 | 1,493,205 | 1,512,580 | 1,526,540 | 1,540,120 | |||||||||||||||||||
| Total shareholders' equity to total assets | 12.76 | % | 12.84 | % | 12.53 | % | 12.23 | % | 12.06 | % | ||||||||||||||
| September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||||||||||||
| Total shareholders' equity | $ | 194,427 | $ | 191,777 | $ | 189,452 | $ | 186,712 | $ | 185,758 | ||||||||||||||
| Less: goodwill and other intangible assets, net | 16,245 | 16,271 | 16,298 | 16,324 | 16,354 | |||||||||||||||||||
| Tangible common shareholders' equity | $ | 178,182 | $ | 175,506 | $ | 173,154 | $ | 170,388 | $ | 169,404 | ||||||||||||||
| Total assets | $ | 1,523,341 | $ | 1,493,205 | $ | 1,512,580 | $ | 1,526,540 | $ | 1,540,120 | ||||||||||||||
| Less: goodwill and other intangible assets, net | 16,245 | 16,271 | 16,298 | 16,324 | 16,354 | |||||||||||||||||||
| Tangible assets | $ | 1,507,096 | $ | 1,476,934 | $ | 1,496,282 | $ | 1,510,216 | $ | 1,523,766 | ||||||||||||||
| Tangible common equity ratio | 11.82 | % | 11.88 | % | 11.57 | % | 11.28 | % | 11.12 | % | ||||||||||||||
Contact:
Joe Schierhorn, President, CEO, and COO
(907) 261-3308
Latosha Frye, Chief Financial Officer
(907) 261-8763