Pacific Financial Corp Earns $2.7 Million, or $0.26 per Diluted Share, for First Quarter 2024, Declares Quarterly Cash Dividend of $0.14 per Share

Pacific Financial Corporation
Pacific Financial Corporation

ABERDEEN, Wash., April 26, 2024 (GLOBE NEWSWIRE) -- Pacific Financial Corporation (OTCQX: PFLC), (“Pacific Financial”) or the (“Company”), the holding company for Bank of the Pacific (the “Bank”), reported net income of $2.7 million, or $0.26 per diluted share for the first quarter of 2024, compared to $2.9 million, or $0.28 per diluted share for the fourth quarter of 2023, and $4.1 million, or $0.39 per diluted share for the first quarter of 2023. All results are unaudited.   

The board of directors of Pacific Financial declared a quarterly cash dividend of $0.14 per share on April 24, 2024. The dividend will be payable on May 24, 2024 to shareholders of record on May 10, 2024.

“We are pleased with our first quarter results, which is a good start to the year; operating earnings were solid, loan growth outpaced deposit growth during the quarter, our net interest margin expanded, and asset quality remained strong,” said Denise Portmann, President and Chief Executive Officer. “Although net interest income declined quarter-over-quarter, primarily as a result of decreased interest earning deposit balances, our net interest margin remains strong and continued to expand as growth in earning asset yields outpaced increases in deposit cost of funds. This expansion in net interest margin was fueled by higher rates on loan production resulting in a loan yield of 5.97%, a 17 basis points improvement from the prior quarter, while cost of funds increased only 7 basis points to 0.90%, despite continued rate pressure.”

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“Our lending team continues to successfully meet the credit needs of our customers and new clients while employing strong underwriting practices.   Loan origination volumes remained steady and net loans receivable increased by $8.9 million during the quarter.   While the possibility of a slowing economy and a continued higher interest rate environment still exist, we remain optimistic regarding the overall strength of our loan portfolio and the economic opportunities for growth in our markets,” said Portmann. “Our team continues to work diligently and we are focused on making progress on our strategic initiatives.”

First Quarter 2024 Financial Highlights:

  • Return on average assets (“ROAA”) was 0.95%, compared to 1.02% for the fourth quarter 2023, and 1.33% for the first quarter 2023.

  • Return on average equity (“ROAE”) was 9.32%, compared to 10.88% from the preceding quarter, and 15.63% from the first quarter a year earlier.

  • Net interest income was $11.4 million, compared to $11.7 million for the fourth quarter of 2023, and $13.1 million for the first quarter 2023.

  • Net interest margin (“NIM”) expanded 4 basis points to 4.38%, compared to 4.34% from the preceding quarter, and contracted 13 basis points from 4.51% for the first quarter a year ago.

  • Provision for credit losses was $33,000 compared to $111,000 for the preceding quarter and $157,000 in the first quarter a year ago.

  • Gross loans balances grew by $8.9 million, or 1%, to $694.2 million at March 31, 2024, compared to $685.3 million at December 31, 2023, and increased by $48.6 million, or 8%, from $645.6 million at March 31, 2023.

  • Total deposits declined $13.5 million to $995.8 million, compared to $1.01 billion at December 31, 2023, and declined 10% from $1.11 billion at March 31, 2023. Core deposits represented 88% of total deposits, with non-interest bearing deposits representing 41% of total deposits at March 31, 2024.

  • Coverage of short-term funds available to uninsured and uncollateralized deposits was 251% at March 31, 2024 compared to 243% at December 31, 2023. Uninsured or uncollateralized deposits were 22% of total deposits at March 31, 2024 and 23% at December 31, 2023.

  • Asset quality remains solid with nonperforming assets to total assets at 0.13%, compared to nonperforming assets to total assets at 0.06% for the preceding quarter, and 0.08% at March 31, 2023.

  • At March 31, 2024, Pacific Financial continued to exceed regulatory well-capitalized requirements with a leverage ratio of 11.6% and a total risk-based capital ratio of 17.6%.

Income Statement Review

Net interest income decreased $251,000 to $11.4 million for the first quarter of 2024, compared to $11.7 million for the fourth quarter of 2023, and decreased $1.7 million compared to $13.1 million for the first quarter a year ago. The decrease in net interest income compared to the preceding quarter and the year ago quarter reflects the increase in funding costs, with interest income remaining relatively flat reflecting lower interest earning deposit balances offset by increased loan interest income.

Net interest margin (NIM) expanded 4 basis points to 4.38% for the first quarter of 2024, compared to 4.34% for the fourth quarter of 2023 and contracted 13 basis points compared to 4.51% for the first quarter of 2023. During the current quarter compared to the preceding quarter increases in asset yields outpaced the growth in cost of funds. Yield on interest earning assets increased 10 basis points to 5.24% for the first quarter of 2024 compared to 5.14% for the prior quarter and 4.72% in the like quarter a year ago. These increases on interest earning assets resulted mainly from increased loan yields.

Average loan yields increased 17 basis points to 5.97% during the current quarter, compared to 5.80% for the preceding quarter and increased 53 basis points from 5.44% for the first quarter 2023, as rates on new loan originations and variable rate loans have priced in a higher interest rate environment. The yield on Fed funds sold and interest-bearing bank deposits was 5.45% for the current quarter, compared to 5.42% for the preceding quarter, and 4.61% for the first quarter of 2023.

The Bank’s total cost of funds increased to 0.90% for the current quarter, compared to 0.83% for the preceding quarter, and 0.21% for the first quarter 2023. The increase in the costs of deposits was due to a change in deposit mix, as customers continued to look for yield by transferring balances from non-maturity deposits to higher rate certificates of deposit and increases in deposit rates, primarily money market and certificate of deposits rates.

Noninterest income declined 5% to $1.4 million for the current quarter, compared to $1.5 million for the linked quarter and increased 12% from $1.3 million a year earlier. The decrease compared to the linked quarter was primarily due to decreased debit card revenue related to lower transaction account volume for the current quarter which was partially offset by higher gain-on-sale of loans during the current quarter. The increase year over year was a result of increased gain-on-sale of loans as well as no loss on securities compared to the like quarter a year ago.

Mortgage banking loan production increased during the current quarter compared to the prior quarter and the like quarter a year ago, this was despite ongoing market challenges, including the higher interest rate environment and limited inventory levels in the Bank’s markets. This higher production resulted in higher gains-on-sale of loans at $152,000 for the current quarter compared to $95,000 for the prior quarter and $111,000 for the like quarter a year ago.

Noninterest expenses were $9.5 million for both the first quarter of 2024 and the prior quarter, increasing $0.3 million compared to $9.2 million for the first quarter of 2023.   Within the total, for the current quarter compared to the prior quarter, salaries and employee benefits increased $207,000 reflecting higher staffing levels from the implementation of strategic initiatives including the opening of a new commercial banking center of seven seasoned commercial bankers in December 2023. The increase in non-interest expense for the current quarter compared to the same quarter a year ago also reflects increases in salaries and employee benefits as well as occupancy expenses, and marketing expenses partially offset by decreases in state and local taxes, FDIC insurance premiums and professional services. The company’s efficiency ratio was 74.21% for the first quarter of 2024, compared to 72.22% in the preceding quarter and 63.91% in the same quarter a year ago.

Income Tax Expense: Federal and Oregon state income tax expense was $630,000 for the current quarter, and $608,000 for the preceding quarter, resulting in effective tax rates of 19.2% and 17.1%, respectively. These income tax expenses reflect the benefits of tax exempt income and credits on tax-exempt loans and investments, affordable housing tax credit financing, and investments in bank owned life insurance.

Balance Sheet Review

Total Assets declined by 1% to $1.13 billion at March 31, 2024, compared to $1.15 billion at December 31, 2023, and decreased 9% from $1.24 billion at March 31, 2023.

Liquidity metrics continued to remain strong with total liquidity sources, both on and off balance sheet sources, at $556.7 million as of March 31, 2024. The Bank has established collateralized credit lines with borrowing capacity from the Federal Home Loan Bank of Des Moines (FHLB) and from the Federal Reserve Bank of San Francisco, as well as $60.0 million in unsecured borrowing lines from various correspondent banks. There was no balance outstanding on any of these facilities at quarter-end.

The following table summarize the Bank’s available liquidity:

Liquidity

(Unaudited)

 

 

 

 

Mar 31,
2024

 

% of
Deposits

 

Dec 31,
2023

 

% of
Deposits

 

$
Change

 

%
Change

 

Mar 31,
2023

 

% of
Deposits

 

$
Change

 

%
Change

 

 

 

 

 

(Dollars in thousands)

Cash and cash equivalents

$

80,052

 

8%

 

$

95,781

 

 

9%

 

$

(15,729)

 

 

-16%

$

237,704

 

21%

 

$

(157,652)

 

 

-66%

 

Unencumbered AFS Securities

 

139,144

 

14%

 

 

140,049

 

 

14%

 

 

(905)

 

 

-1%

 

116,886

 

11%

 

 

22,258

 

 

19%

 

Secured lines of Credit (FHLB, FRB)

 

337,553

 

34%

 

 

327,264

 

 

32%

 

 

10,289

 

 

3%

 

318,179

 

29%

 

 

19,374

 

 

6%

 

 

Total short-term funds available

$

556,749

 

56%

 

$

563,094

 

 

55%

 

$

(6,345)

 

 

-1%

$

672,769

 

61%

 

$

(116,020)

 

 

-17%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mar 31,
2024

 

Dec 31,
2023

 

Mar 31,
2023

 

 

 

 

 

 

 

 

 

 

 

Short-term funds available to uninsured/uncollateralized deposits

 

251%

 

 

243%

 

 

259%

 

 

 

 

 

 

 

 

 

 

 

 

Uninsured/uncollateralized deposits to total deposits

 

 

 

22%

 

 

23%

 

 

23%

 

 

 

 

 

 

 

 

 

 

 

 

Gross loans to deposits ratio

 

 

 

 

 

69%

 

 

67%

 

 

57%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Securities decreased 2% to $288.4 million at March 31, 2024, compared to $293.6 million at December 31, 2023, and increased 1% from $285.9 million at March 31, 2023. During the quarter, new purchases totaled $5.0 million at an average yield of 4.8%, with payments, maturities, and fair value changes of $10.2 million. The average adjusted duration of the investment securities portfolio was 4.3 at March 31, 2024.

Gross loans balances increased $8.9 million, or 1%, to $694.2 million at March 31, 2024, compared to $685.3 million at December 31, 2023. Year-over-year loan growth was 8%, or $48.6 million, with loan growth occurring in most categories. The largest year-over-year increases were in construction and development, residential 1-4 family and multi-family which increased $17.1 million, $14.4 million and $13.5 million, respectively. In addition, commercial real estate both owner and non-owner occupied increased during the same time period, while commercial and consumer loans both decreased.

The Company manages new loan origination volume and the portfolio using concentration limits that establish maximum exposure levels by certain industry segments, loan product types, geography and single borrower limits. The loan pipeline continues to be supported by sustained business development activity of its commercial lending teams. In addition, the loan portfolio continues to be well-diversified and is originated predominantly within the Company’s Western Washington and Oregon markets.

Credit Quality: Non-performing assets remain minimal although increasing to $1.5 million, or 0.13% of total assets at March 31, 2024, compared to $664,000, or 0.06% at December 31, 2023, and $961,000, or 0.08% at March 31, 2023. The increase was primarily due to a single well secured farmland loan transferring to non-accrual status during the quarter.

Allowance for Credit Losses (“ACL”) for loans was $8.6 million, or 1.24% of gross loans at March 31, 2024, and at December 31, 2023, compared to $8.2 million at March 31, 2023. The total provision for credit losses, which includes a provision for credit losses on loans as well as a provision for credit losses for unfunded loan commitments, was $33,000 in the first quarter of 2024, compared to $111,000 in the fourth quarter of 2023 and a provision of $157,000 for the first quarter of 2023. The provision during the current quarter primarily reflected net loan growth which was partially offset by an improved 12 month forecast for national unemployment used in the allowance forecast model. Minimal charge-offs during the quarter and ongoing strong loan quality metrics during the quarter in large part mitigated additional reserves associated with the loan growth.   Net charge offs for the current quarter totaled $33,000, compared to net recoveries of $21,000 for the preceding quarter and net recoveries of $1,000 for the first quarter a year ago.

Total Deposits were $995.8 million at March 31, 2024, compared to $1.01 billion at December 31, 2023 and $1.11 billion at March 31, 2023. During the current quarter, the deposit mix continued to change with some customers transferring a portion of their excess deposit funds into higher yield certificate of deposits. The decline in deposits from a year ago was also primarily due to interest rate sensitive clients shifting a portion of their non-operating deposit balances to higher yielding investments.

Certificate of deposit balances increased $13.8 million from the linked quarter and $49.4 million from the same quarter a year ago and represent 12%, 10%, and 6%, of total deposits, at March 31, 2024, December 31, 2023, and March 31, 2023, respectively. Non-interest-bearing account balances decreased 1% to $404.5 million at March 31, 2024, compared to $409.3 million at December 31, 2023 and decreased 16% compared to $480.5 million at March 31, 2023. At 41%, non-interest bearing demand deposits continues to represent a high percentage of total deposits. Additionally, we continue to benefit from a strong core deposit base, with core deposits representing 88% of total deposits at quarter end.

Shareholder’s Equity remained flat at $114.7 million at March 31, 2024, compared to December 31, 2023, and increased $5.8 million compared to $108.9 million at March 31, 2023. Net unrealized losses on available-for-sale securities increased during the quarter and was $21.5 million at March 31, 2024 compared to $20.8 million at December 31, 2023, and $20.5 million at March 31, 2023. This increase in net unrealized losses reflects the increases in longer-term market interest rates during the quarter. Also impacting shareholder’s equity was the repurchase of $670,000 or 62,317 shares under our current stock repurchase program during the quarter and $1.07 million or 100,817 shares since the inception of the current program.

Book value per common share was $11.10 at March 31, 2024, compared to $11.04 at December 31, 2023, and $10.45 at March 31, 2023. Regulatory capital ratios of both the Company and the Bank continue to exceed the well-capitalized regulatory thresholds, with the company’s leverage ratio at 11.6% and total risk-based capital ratio at 17.6% as of March 31, 2024.

Financial Performance Overview

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

Mar 31,
2024

 

Dec 31,
2023

 

Change

 

Mar 31,
2023

 

Change

Performance Ratios

 

 

 

 

 

 

 

 

 

Return on average assets, annualized

0.95%

 

 

1.02%

 

 

(0.07)

 

 

1.33%

 

 

(0.38)

 

Return on average equity, annualized

9.32%

 

 

10.88%

 

 

(1.56)

 

 

15.63%

 

 

(6.31)

 

Efficiency ratio (1)

74.21%

 

 

72.22%

 

 

1.99

 

 

63.91%

 

 

10.30

 

 

 

 

 

 

 

 

 

 

 

 

(1) Non-interest expense divided by net interest income plus noninterest income.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Balance Sheet Overview

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mar 31,
2024

 

Dec 31,
2023

 

$
Change

 

%
Change

 

Mar 31,
2023

 

$
Change

 

%
Change

Assets:

 

(Dollars in thousands, except per share data)

 

Cash on hand and in banks

$

15,597

 

$

16,716

 

$

(1,119)

 

 

-7%

 

$

16,593

 

$

(996)

 

 

-6%

 

 

Interest bearing deposits

 

75,705

 

 

91,355

 

 

(15,650)

 

 

-17%

 

 

235,958

 

 

(160,253)

 

 

-68%

 

 

Investment securities

 

288,439

 

 

293,579

 

 

(5,140)

 

 

-2%

 

 

285,925

 

 

2,514

 

 

1%

 

 

Loans held-for-sale

 

-

 

 

1,103

 

 

(1,103)

 

 

-100%

 

 

249

 

 

(249)

 

 

-100%

 

 

Loans, net of deferred fees

 

693,461

 

 

684,554

 

 

8,907

 

 

1%

 

 

644,901

 

 

48,560

 

 

8%

 

 

Allowance for loan losses

 

(8,580)

 

 

(8,530)

 

 

(50)

 

 

1%

 

 

(8,231)

 

 

(349)

 

 

4%

 

 

Net loans

 

684,881

 

 

676,024

 

 

8,857

 

 

1%

 

 

636,670

 

 

48,211

 

 

8%

 

 

Federal Home Loan Bank and Pacific Coast Bankers' Bank stock, at cost

 

1,689

 

 

1,783

 

 

(94)

 

 

-5%

 

 

2,567

 

 

(878)

 

 

-34%

 

 

Other assets

 

68,275

 

 

68,339

 

 

(64)

 

 

0%

 

 

65,572

 

 

2,703

 

 

4%

 

 

Total assets

$

1,134,586

 

$

1,148,899

 

$

(14,313)

 

 

-1%

 

$

1,243,534

 

$

(108,948)

 

 

-9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits

$

995,756

 

$

1,009,292

 

$

(13,536)

 

 

-1%

 

$

1,110,368

 

$

(114,612)

 

 

-10%

 

 

Borrowings

 

13,403

 

 

13,403

 

 

-

 

 

0%

 

 

13,403

 

 

-

 

 

0%

 

 

Accrued interest payable and other liabilities

 

10,702

 

 

11,513

 

 

(811)

 

 

-7%

 

 

10,848

 

 

(146)

 

 

-1%

 

 

Shareholders' equity

 

114,725

 

 

114,691

 

 

34

 

 

0%

 

 

108,915

 

 

5,810

 

 

5%

 

 

Total liabilities and shareholders' equity

$

1,134,586

 

$

1,148,899

 

$

(14,313)

 

 

-1%

 

$

1,243,534

 

$

(108,948)

 

 

-9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Shares Outstanding

 

10,335,557

 

 

10,388,724

 

 

(53,167)

 

 

-1%

 

 

10,424,294

 

 

(88,737)

 

 

-1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per common share (1)

$

11.10

 

$

11.04

 

$

0.06

 

 

1%

 

$

10.45

 

$

0.65

 

 

6%

 

Tangible book value per common share (2)

$

9.80

 

$

9.75

 

$

0.05

 

 

1%

 

$

9.16

 

$

0.64

 

 

7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Book value per common share is calculated as the total common shareholders' equity divided by the period ending number of common stock shares outstanding.

(2) Tangible book value per common share is calculated as the total common shareholders' equity less total intangible assets and liabilities, divided by the period ending number of common stock shares outstanding.


Income Statement Overview

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended,

 

 

 

Mar 31,
2024

 

Dec 31,
2023

 

$
Change

 

%
Change

 

Mar 31,
2023

 

$
Change

 

%
Change

 

 

 

(Dollars in thousands, except per share data)

Interest and dividend income

$

13,634

 

$

13,813

 

$

(179)

 

 

-1%

 

$

13,690

 

$

(56)

 

 

0%

 

Interest expense

 

2,233

 

 

2,161

 

 

72

 

 

3%

 

 

593

 

 

1,640

 

 

277%

 

 

Net interest income

 

11,401

 

 

11,652

 

 

(251)

 

 

-2%

 

 

13,097

 

 

(1,696)

 

 

-13%

 

Provision for credit losses

 

33

 

 

111

 

 

(78)

 

 

-70%

 

 

157

 

 

(124)

 

 

-79%

 

Noninterest income

 

1,444

 

 

1,528

 

 

(84)

 

 

-5%

 

 

1,287

 

 

157

 

 

12%

 

Noninterest expense

 

9,532

 

 

9,519

 

 

13

 

 

0%

 

 

9,187

 

 

345

 

 

4%

 

Income before income taxes

 

3,280

 

 

3,550

 

 

(270)

 

 

-8%

 

 

5,040

 

 

(1,760)

 

 

-35%

 

Income tax expense

 

630

 

 

608

 

 

22

 

 

4%

 

 

930

 

 

(300)

 

 

-32%

 

 

Net Income

$

2,650

 

$

2,942

 

$

(292)

 

 

-10%

 

$

4,110

 

$

(1,460)

 

 

-36%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding - basic

 

10,350,830

 

 

10,411,812

 

 

(60,982)

 

 

-1%

 

 

10,418,292

 

 

(67,462)

 

 

-1%

 

Average common shares outstanding - diluted

 

10,363,460

 

 

10,420,337

 

 

(56,877)

 

 

-1%

 

 

10,432,245

 

 

(68,785)

 

 

-1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.26

 

$

0.28

 

$

(0.02)

 

 

-7%

 

$

0.39

 

$

(0.13)

 

 

-33%

 

 

Diluted

$

0.26

 

$

0.28

 

$

(0.02)

 

 

-7%

 

$

0.39

 

$

(0.13)

 

 

-33%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

19.2%

 

 

17.1%

 

 

2.1%

 

 

 

 

18.5%

 

 

0.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Noninterest Income

(Unaudited)

 

 

 

For the Three Months Ended,

 

 

 

Mar 31,
2024

 

Dec 31,
2023

 

$
Change

 

%
Change

 

Mar 31,
2023

 

$
Change

 

%
Change

 

 

 

(Dollars in thousands)

Service charges on deposits

$

475

$

478

$

(3)

 

 

-1%

 

$

473

 

$

2

 

 

0%

 

Gain on sale of loans, net

 

152

 

95

 

57

 

 

60%

 

 

111

 

 

41

 

 

37%

 

Gain on sale of securities available for sale, net

 

-

 

-

 

-

 

 

0%

 

 

(154)

 

 

154

 

 

0%

 

Earnings on bank owned life insurance

 

180

 

176

 

4

 

 

2%

 

 

164

 

 

16

 

 

10%

 

Other noninterest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fee income

 

626

 

764

 

(138)

 

 

-18%

 

 

705

 

 

(79)

 

 

-11%

 

 

Other

 

11

 

15

 

(4)

 

 

-27%

 

 

(12)

 

 

23

 

 

-192%

 

Total noninterest income

$

1,444

$

1,528

$

(84)

 

 

-5%

 

$

1,287

 

$

157

 

 

12%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Noninterest Expense

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended,

 

 

 

Mar 31,
2024

 

Dec 31,
2023

 

$
Change

 

%
Change

 

Mar 31,
2023

 

$
Change

 

%
Change

 

 

 

(Dollars in thousands)

Salaries and employee benefits

$

5,994

$

5,787

$

207

 

 

4%

%

$

5,785

$

209

 

 

4%

 

Occupancy

 

641

 

679

 

(38)

 

 

-6

%

 

531

 

110

 

 

21%

 

Equipment

 

284

 

301

 

(17)

 

 

-6

%

 

287

 

(3)

 

 

-1%

 

Data processing

 

950

 

971

 

(21)

 

 

-2

%

 

951

 

(1)

 

 

0%

 

Professional services

 

210

 

238

 

(28)

 

 

-12

%

 

241

 

(31)

 

 

-13%

 

State and local taxes

 

150

 

187

 

(37)

 

 

-20

%

 

178

 

(28)

 

 

-16%

 

FDIC and State assessments

 

134

 

144

 

(10)

 

 

-7

%

 

154

 

(20)

 

 

-13%

 

Other noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Director fees

 

88

 

82

 

6

 

 

7%

%

 

71

 

17

 

 

24%

 

 

Communication

 

67

 

73

 

(6)

 

 

-8

%

 

59

 

8

 

 

14%

 

 

Advertising

 

104

 

114

 

(10)

 

 

-9

%

 

60

 

44

 

 

73%

 

 

Professional liability insurance

 

72

 

79

 

(7)

 

 

-9

%

 

67

 

5

 

 

7%

 

 

Amortization

 

45

 

43

 

2

 

 

5%

%

 

44

 

1

 

 

2%

 

 

Other

 

793

 

821

 

(28)

 

 

-3

%

 

759

 

34

 

 

4%

 

Total noninterest expense

$

9,532

$

9,519

$

13

 

 

0%

%

$

9,187

$

345

 

 

4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Investment Securities

(Unaudited)

 

 

 

 

Mar 31,
2024

 

% of
Total

 

Dec 31,
2023

 

% of
Total

 

$
Change

 

%
Change

 

Mar 31,
2023

 

% of
Total

 

$
Change

 

%
Change

 

 

 

 

(Dollars in thousands)

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized mortgage obligations

$

129,213

 

 

45%

 

$

126,949

 

 

43%

 

$

2,264

 

 

2%

 

$

122,992

 

 

43%

 

$

6,221

 

 

5%

 

 

Mortgage backed securities

 

37,753

 

 

13%

 

 

38,103

 

 

13%

 

 

(350)

 

 

-1%

 

 

32,294

 

 

11%

 

 

5,459

 

 

17%

 

 

U.S. Government and agency securities

 

77,826

 

 

27%

 

 

83,748

 

 

29%

 

 

(5,922)

 

 

-7%

 

 

84,814

 

 

30%

 

 

(6,988)

 

 

-8%

 

 

Municipal securities

 

43,647

 

 

15%

 

 

44,779

 

 

15%

 

 

(1,132)

 

 

-3%

 

 

44,827

 

 

16%

 

 

(1,180)

 

 

-3%

 

 

Corporate debt securities

 

-

 

 

0%

 

 

-

 

 

0%

 

 

-

 

 

0%

 

 

998

 

 

0%

 

 

(998)

 

 

-100%

 

 

 

Total

$

288,439

 

 

100%

 

$

293,579

 

 

100%

 

$

(5,140)

 

 

-2%

 

$

285,925

 

 

100%

 

$

2,514

 

 

1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held to maturity securities

$

49,132

 

 

17%

 

$

55,454

 

 

19%

 

$

(6,322)

 

 

-11%

 

$

58,595

 

 

20%

 

$

(9,463)

 

 

-16%

 

 

Available for sale securities

$

239,307

 

 

83%

 

$

238,125

 

 

81%

 

$

1,182

 

 

0%

 

$

227,330

 

 

80%

 

$

11,977

 

 

5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government & Agency securities

$

244,762

 

 

85%

 

$

248,768

 

 

85%

 

$

(4,006)

 

 

-2%

 

$

240,061

 

 

84%

 

$

4,701

 

 

2%

 

 

AAA, AA, A rated securities

$

43,008

 

 

15%

 

$

43,687

 

 

15%

 

$

(679)

 

 

-2%

 

$

44,614

 

 

16%

 

$

(1,606)

 

 

-4%

 

 

Non-rated securities

$

669

 

 

0%

 

$

1,124

 

 

0%

 

$

(455)

 

 

-40%

 

$

1,250

 

 

0%

 

$

(581)

 

 

-46%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AFS Unrealized Gain (Loss)

$

(21,464)

 

 

-7%

 

$

(20,808)

 

 

-7%

 

$

(656)

 

 

0%

 

$

(20,518)

 

 

-7%

 

$

(946)

 

 

0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Loans by Category

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mar 31,
2024

 

% of
Gross
Loans

 

Dec 31,
2023

 

% of
Gross
Loans

 

$
Change

 

%
Change

 

Mar 31,
2023

 

% of
Gross Loans

 

$
Change

 

%
Change

 

Commercial:

 

(Dollars in thousands)

 

 

Commercial and agricultural

$

71,212

 

 

10

%

$

75,322

 

 

11

%

$

(4,110

)

 

-5

%

$

75,279

 

 

12

%

$

(4,067

)

 

-5

%

 

 

PPP

 

108

 

 

0

%

 

122

 

 

0

%

 

(14

)

 

-11

%

 

405

 

 

0

%

 

(297

)

 

-73

%

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and development

 

51,978

 

 

7

%

 

48,720

 

 

7

%

 

3,258

 

 

7

%

 

34,918

 

 

5

%

 

17,060

 

 

49

%

 

Residential 1-4 family

 

99,808

 

 

14

%

 

96,301

 

 

14

%

 

3,507

 

 

4

%

 

85,380

 

 

13

%

 

14,428

 

 

17

%

 

Multi-family

 

54,430

 

 

8

%

 

51,025

 

 

7

%

 

3,405

 

 

7

%

 

40,882

 

 

6

%

 

13,548

 

 

33

%

 

Commercial real estate -- owner occupied

 

167,631

 

 

24

%

 

164,443

 

 

24

%

 

3,188

 

 

2

%

 

160,534

 

 

25

%

 

7,097

 

 

4

%

 

Commercial real estate -- non owner occupied

 

157,322

 

 

23

%

 

155,280

 

 

23

%

 

2,042

 

 

1

%

 

151,923

 

 

24

%

 

5,399

 

 

4

%

 

Farmland

 

26,752

 

 

4

%

 

27,273

 

 

4

%

 

(521

)

 

-2

%

 

26,451

 

 

4

%

 

301

 

 

1

%

 

Consumer

 

64,988

 

 

10

%

 

66,863

 

 

10

%

 

(1,875

)

 

-3

%

 

69,867

 

 

11

%

 

(4,879

)

 

-7

%

 

 

Gross Loans

 

694,229

 

 

100

%

 

685,349

 

 

100

%

 

8,880

 

 

1

%

 

645,639

 

 

100

%

 

48,590

 

 

8

%

 

 

Less: allowance for loan losses

 

(8,580

)

 

 

 

(8,530

)

 

 

 

(50

)

 

 

 

(8,231

)

 

 

 

(349

)

 

 

 

 

Less: deferred fees

 

(768

)

 

 

 

(795

)

 

 

 

27

 

 

 

 

(738

)

 

 

 

(30

)

 

 

 

 

Net loans

$

684,881

 

 

 

$

676,024

 

 

 

$

8,857

 

 

 

$

636,670

 

 

 

$

48,211

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan Concentration

(Unaudited)

 

 

 

 

Mar 31,
2024

 

% of Risk
Based Capital

 

Dec 31,
2023

 

% of Risk
Based Capital

 

Change

 

Mar 31,
2023

 

% of Risk
Based
Capital

 

Change

 

 

 

 

 

Commercial:

 

(Dollars in thousands)

 

 

 

 

 

 

Commercial and agricultural

$

71,212

 

 

51

%

$

75,322

 

 

54

%

 

-3

%

$

75,279

 

 

57

%

 

-6

%

 

 

 

 

 

 

PPP

 

108

 

 

0

%

 

122

 

 

0

%

 

0

%

 

405

 

 

0

%

 

0

%

 

 

 

 

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and development

 

51,978

 

 

37

%

 

48,720

 

 

35

%

 

2

%

 

34,918

 

 

26

%

 

11

%

 

 

 

 

 

Residential 1-4 family

 

99,808

 

 

72

%

 

96,301

 

 

70

%

 

2

%

 

85,380

 

 

64

%

 

8

%

 

 

 

 

 

Multi-family

 

54,430

 

 

39

%

 

51,025

 

 

37

%

 

2

%

 

40,882

 

 

31

%

 

8

%

 

 

 

 

 

Commercial real estate -- owner occupied

 

167,631

 

 

120

%

 

164,443

 

 

119

%

 

1

%

 

160,534

 

 

121

%

 

-1

%

 

 

 

 

 

Commercial real estate -- non owner occupied

 

157,322

 

 

113

%

 

155,280

 

 

112

%

 

1

%

 

151,923

 

 

115

%

 

-2

%

 

 

 

 

 

Farmland

 

26,752

 

 

19

%

 

27,273

 

 

20

%

 

-1

%

 

26,451

 

 

20

%

 

-1

%

 

 

 

 

 

Consumer

 

64,988

 

 

47

%

 

66,863

 

 

48

%

 

-1

%

 

69,867

 

 

53

%

 

-6

%

 

 

 

 

 

 

Gross Loans

$

694,229

 

 

 

$

685,349

 

 

 

 

 

$

645,639

 

 

 

 

 

 

 

 

 

 

Regulatory Commercial Real Estate

$

261,155

 

 

188

%

$

252,493

 

 

182

%

 

6

%

$

225,163

 

 

170

%

 

18

%

 

 

 

 

 

Total Risk Based Capital*

$

139,255

 

 

 

$

138,449

 

 

 

 

 

$

132,579

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*Bank of the Pacific

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table presents the Commercial real estate – non owner occupied loan balances, including loans in the process of construction and development, by collateral type:

 

Non-Owner Occupied Commercial Real Estate Composition*

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mar 31,
2024

 

% of
Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Multifamily

$

61,085

 

 

27

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

36,192

 

 

16

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hospitality

 

32,468

 

 

14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

23,730

 

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mini Storage

 

23,438

 

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed Use

 

22,204

 

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Industrial

 

13,348

 

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warehouse

 

7,483

 

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Special Purpose

 

7,058

 

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

3,259

 

 

0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

230,265

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*Includes loans in the process of construction and development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Deposits by Category

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mar 31,
2024

 

% of
Total

 

Dec 31,
2023

 

% of
Total

 

$
Change

 

%
Change

 

Mar 31,
2023

 

% of
Total

 

$
Change

 

%
Change

 

 

(Dollars in thousands)

Interest-bearing demand

$

177,735

 

17

%

$

183,436

 

18

%

$

(5,701

)

 

-3

%

$

215,853

 

20

%

$

(38,118

)

 

-18

%

Money market

 

169,095

 

17

%

 

179,344

 

17

%

 

(10,249

)

 

-6

%

 

183,066

 

16

%

 

(13,971

)

 

-8

%

Savings

 

129,796

 

13

%

 

136,408

 

14

%

 

(6,612

)

 

-5

%

 

165,694

 

15

%

 

(35,898

)

 

-22

%

Time deposits (CDs)

 

114,644

 

12

%

 

100,832

 

10

%

 

13,812

 

 

14

%

 

65,231

 

6

%

 

49,413

 

 

76

%

Total interest-bearing deposits

 

591,270

 

59

%

 

600,020

 

59

%

 

(8,750

)

 

-1

%

 

629,844

 

57

%

 

(38,574

)

 

-6

%

Non-interest bearing demand

 

404,486

 

41

%

 

409,272

 

41

%

 

(4,786

)

 

-1

%

 

480,524

 

43

%

 

(76,038

)

 

-16

%

Total deposits

$

995,756

 

100

%

$

1,009,292

 

100

%

$

(13,536

)

 

-1

%

$

1,110,368

 

100

%

$

(114,612

)

 

-10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insured Deposits

$

645,784

 

65

%

$

647,330

 

64

%

$

(1,546

)

 

0

%

$

700,960

 

64

%

$

(55,176

)

 

-8

%

Collaterialized Deposits

 

127,733

 

13

%

 

129,895

 

13

%

 

(2,162

)

 

-2

%

 

149,856

 

13

%

 

(22,123

)

 

-15

%

Uninsured Deposits

 

222,239

 

22

%

 

232,067

 

23

%

 

(9,828

)

 

-4

%

 

259,552

 

23

%

 

(37,313

)

 

-14

%

Total Deposits

$

995,756

 

100

%

$

1,009,292

 

100

%

$

(13,536

)

 

-1

%

$

1,110,368

 

100

%

$

(114,612

)

 

-10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Deposits

$

470,442

 

47

%

$

470,425

 

46

%

$

17

 

 

0

%

$

502,430

 

45

%

$

(31,988

)

 

-6

%

Business Deposits

 

387,917

 

39

%

 

398,977

 

40

%

 

(11,060

)

 

-3

%

 

447,778

 

40

%

 

(59,861

)

 

-13

%

Public Deposits

 

137,397

 

14

%

 

139,890

 

14

%

 

(2,493

)

 

-2

%

 

160,160

 

15

%

 

(22,763

)

 

-14

%

Total Deposits

$

995,756

 

100

%

$

1,009,292

 

100

%

$

(13,536

)

 

-1

%

$

1,110,368

 

100

%

$

(114,612

)

 

-10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table summarizes the capital measures of the Company and the Bank respectively, at the dates listed below.

Capital Measures

(unaudited)

 

 

Mar 31,
2024

 

Dec 31,
2023

 

Change

 

Mar 31,
2023

 

Change

 

 

Well
Capitalized
Under Prompt
Correction
Action
Regulations

 

Pacific Financial Corporation

 

 

 

 

 

 

 

 

 

 

 

 

 

Total risk-based capital ratio

17.6

%

 

17.7

%

 

(0.1

)

 

17.5

%

 

0.1

 

 

N/A

 

Tier 1 risk-based capital ratio

16.5

%

 

16.5

%

 

-

 

 

16.3

%

 

0.2

 

 

N/A

 

Common equity tier 1 ratio

14.8

%

 

14.9

%

 

(0.1

)

 

14.6

%

 

0.2

 

 

N/A

 

Leverage ratio

11.6

%

 

11.3

%

 

0.3

 

 

9.9

%

 

1.7

 

 

N/A

 

Tangible common equity ratio

9.0

%

 

8.9

%

 

0.1

 

 

7.8

%

 

1.2

 

 

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank of the Pacific

 

 

 

 

 

 

 

 

 

 

 

 

 

Total risk-based capital ratio

17.6

%

 

17.6

%

 

-

 

 

17.4

%

 

0.2

 

 

10.5

%

 

Tier 1 risk-based capital ratio

16.4

%

 

16.4

%

 

-

 

 

16.2

%

 

0.2

 

 

8.5

%

 

Common equity tier 1 ratio

16.4

%

 

16.4

%

 

-

 

 

16.2

%

 

0.2

 

 

7.0

%

 

Leverage ratio

11.5

%

 

11.2

%

 

0.3

 

 

9.8

%

 

1.7

 

 

7.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following tables set forth information regarding average balances of interest-earning assets and interest-bearing liabilities and the resultant yields or cost, and the net interest margin on a tax equivalent basis. Loans held for sale and non-accrual loans are included in total loans.

Net Interest Margin

(Unaudited)

(Annualized, tax-equivalent basis)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mar 31,
2024

 

Dec 31,
2023

 

$
Change

 

%
Change

 

Mar 31,
2023

 

$
Change

 

%
Change

Average Balances

 

(Dollars in thousands)

Gross loans

$

688,918

 

$

675,622

 

$

13,296

 

 

2

%

$

643,851

 

$

45,067

 

 

7

%

Loans held for sale

$

595

 

$

709

 

$

(114

)

 

-16

%

$

584

 

$

11

 

 

2

%

Investment securities

$

292,375

 

$

289,245

 

$

3,130

 

 

1

%

$

287,714

 

$

4,661

 

 

2

%

Federal funds sold & interest bearing deposits in banks

$

68,873

 

$

105,177

 

$

(36,304

)

 

-35

%

$

251,118

 

$

(182,245

)

 

-73

%

Total interest-earning assets

$

1,050,761

 

$

1,070,753

 

$

(19,992

)

 

-2

%

$

1,183,267

 

$

(132,506

)

 

-11

%

Non-interest bearing demand deposits

$

395,004

 

$

419,994

 

$

(24,990

)

 

-6

%

$

483,135

 

$

(88,131

)

 

-18

%

Interest bearing deposits

$

590,410

 

$

593,464

 

$

(3,054

)

 

-1

%

$

643,972

 

$

(53,562

)

 

-8

%

Total Deposits

$

985,414

 

$

1,013,458

 

$

(28,044

)

 

-3

%

$

1,127,107

 

$

(141,693

)

 

-13

%

Borrowings

$

13,403

 

$

13,403

 

$

-

 

 

0

%

$

13,403

 

$

-

 

 

0

%

Total interest-bearing liabilities

$

603,813

 

$

606,867

 

$

(3,054

)

 

-1

%

$

657,375

 

$

(53,562

)

 

-8

%

Total Equity

$

114,309

 

$

107,251

 

$

7,058

 

 

7

%

$

106,612

 

$

7,697

 

 

7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended,

 

 

 

 

 

 

 

Mar 31,
2024

 

Dec 31,
2023

 

Change

 

Mar 31,
2023

 

Change

 

 

 

 

Yield on average gross loans (1)

 

5.97

%

 

5.80

%

 

0.17

 

 

5.44

%

 

0.53

 

 

 

 

 

Yield on average investment securities (1)

 

3.45

%

 

3.48

%

 

(0.03

)

 

3.20

%

 

0.25

 

 

 

 

 

Yield on Fed funds sold & interest bearing deposits in banks

 

5.45

%

 

5.42

%

 

0.03

 

 

4.61

%

 

0.84

 

 

 

 

 

Cost of average interest bearing deposits

 

1.36

%

 

1.28

%

 

0.08

 

 

0.24

%

 

1.12

 

 

 

 

 

Cost of average borrowings

 

7.26

%

 

7.31

%

 

(0.05

)

 

6.45

%

 

0.81

 

 

 

 

 

Cost of average total deposits and borrowings

 

0.90

%

 

0.83

%

 

0.07

 

 

0.21

%

 

0.69

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yield on average interest-earning assets

 

5.24

%

 

5.14

%

 

0.10

 

 

4.72

%

 

0.52

 

 

 

 

 

Cost of average interest-bearing liabilities

 

1.49

%

 

1.41

%

 

0.08

 

 

0.37

%

 

1.12

 

 

 

 

 

Net interest spread

 

3.75

%

 

3.73

%

 

0.02

 

 

4.35

%

 

(0.60

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (1)

 

4.38

%

 

4.34

%

 

0.04

 

 

4.51

%

 

(0.13

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Tax-exempt income has been adjusted to a tax equivalent basis at a rate of 21%.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Credit Quality

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mar 31,
2024

 

Dec 31,
2023

 

$
Change

 

%
Change

 

Mar 31,
2023

 

$
Change

 

%
Change

Risk rating:

 

(Dollars in thousands)

Pass

$

684,779

 

$

674,993

 

$

9,786

 

 

1

%

$

635,187

 

$

49,592

 

 

8

%

Special Mention

 

4,771

 

 

4,669

 

 

102

 

 

2

%

 

4,736

 

 

35

 

 

1

%

Substandard

 

4,679

 

 

5,687

 

 

(1,008

)

 

-18

%

 

5,716

 

 

(1,037

)

 

-18

%

Gross Loans

$

694,229

 

$

685,349

 

$

8,880

 

 

1

%

$

645,639

 

$

48,590

 

 

8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Classified loans1 to gross loans

 

0.67

%

 

0.83

%

 

 

 

 

 

0.89

%

 

 

 

 

ACL as a percentage of classified loans1

 

183.37

%

 

149.94

%

 

 

 

 

 

144.00

%

 

 

 

 

Delinquent loans 30-90 days, not in nonaccrual status, to gross loans

 

0.10

%

 

0.08

%

 

 

 

 

 

0.03

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

¹Classified loans include loans rated substandard or worse and are defined as loans having a well-defined weakness or weaknesses related to the borrower's financial capacity or to pledged collateral that may jeopardize the repayment of the debt. They are characterized by the possibility that the Bank may sustain some loss if the deficiencies giving rise to the substandard classification are not corrected.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Nonperforming Assets

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mar 31,
2024

 

Dec 31,
2023

 

$
Change

 

%
Change

 

Mar 31,
2023

 

$
Change

 

%
Change

 

 

(Dollars in thousands)

Total nonaccrual loans, beginning of three month period

$

664

 

$

1,219

 

$

(555

)

 

-46

%

$

869

 

$

(205

)

 

-24

%

Transfer to performing loans

 

-

 

 

(478

)

 

478

 

 

-100

%

 

(21

)

 

21

 

 

-100

%

Addition of nonaccrual loans

 

1,089

 

 

-

 

 

1,089

 

 

100

%

 

241

 

 

848

 

 

352

%

Moved to other assets owned

 

-

 

 

-

 

 

-

 

 

0

%

 

-

 

 

-

 

 

0

%

Principal payments, net

 

(227

)

 

(77

)

 

(150

)

 

195

%

 

(128

)

 

(99

)

 

77

%

Charge-offs, net

 

-

 

 

-

 

 

-

 

 

0

%

 

-

 

 

-

 

 

0

%

Total nonaccrual loans, end of three month period

$

1,526

 

$

664

 

$

862

 

 

130

%

$

961

 

$

565

 

 

59

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other real estate owned and foreclosed assets

 

-

 

 

-

 

 

-

 

 

0

%

 

-

 

 

-

 

 

0

%

Total nonperforming assets

$

1,526

 

$

664

 

$

862

 

 

130

%

$

961

 

$

565

 

 

59

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruing loans past due 90 days or more

$

-

 

$

-

 

$

-

 

 

0

%

$

-

 

$

-

 

 

0

%

Percentage of nonperforming assets to total assets

 

0.13

%

 

0.06

%

 

 

 

 

 

0.08

%

 

 

 

 

Nonperforming loans to total loans

 

0.22

%

 

0.10

%

 

 

 

 

 

0.15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Allowance for Credit Losses