Dogwood State Bank Reports Higher Second Quarter 2024 Earnings Reflecting Strong Operating Momentum Heading into Community First Acquisition
Dogwood State Bank (OTCQX: DSBX) reported strong Q2 2024 earnings as it prepares to close its acquisition of Community First Bancorporation on August 1, 2024. Key highlights include:
- Net income grew to $2.7 million in Q2 2024, up from $1.8 million in Q1 2024 and $2.0 million in Q2 2023
- Net interest margin increased to 3.53% in Q2 2024
- SBA lending income rose to $2.7 million in Q2 2024
- Loans held for investment grew by $87.8 million in Q2 2024
- Deposits grew by $35.3 million in Q2 2024
The bank incurred $562,000 in merger and acquisition expenses related to the Community First acquisition. Post-acquisition, Dogwood will have approximately $2.2 billion in assets, $1.7 billion in loans, and $1.8 billion in deposits.
Dogwood State Bank (OTCQX: DSBX) ha riportato solidi guadagni nel secondo trimestre del 2024, mentre si prepara a chiudere l'acquisizione di Community First Bancorporation il 1 agosto 2024. I punti salienti includono:
- Il reddito netto è cresciuto a $2,7 milioni nel Q2 2024, rispetto a $1,8 milioni nel Q1 2024 e $2,0 milioni nel Q2 2023
- Il margine di interesse netto è aumentato al 3,53% nel Q2 2024
- Le entrate da prestiti SBA sono salite a $2,7 milioni nel Q2 2024
- I prestiti detenuti per investimento sono aumentati di $87,8 milioni nel Q2 2024
- I depositi sono cresciuti di $35,3 milioni nel Q2 2024
La banca ha sostenuto spese di fusione e acquisizione pari a $562.000 relative all'acquisizione di Community First. Dopo l'acquisizione, Dogwood avrà circa $2,2 miliardi in attivi, $1,7 miliardi in prestiti e $1,8 miliardi in depositi.
Dogwood State Bank (OTCQX: DSBX) reportó fuertes ganancias en el segundo trimestre de 2024 mientras se prepara para cerrar su adquisición de Community First Bancorporation el 1 de agosto de 2024. Los aspectos más destacados incluyen:
- La renta neta creció a $2.7 millones en el Q2 2024, en comparación con $1.8 millones en el Q1 2024 y $2.0 millones en el Q2 2023
- El margen de interés neto aumentó al 3.53% en el Q2 2024
- Los ingresos por préstamos de la SBA se elevaron a $2.7 millones en el Q2 2024
- Los préstamos mantenidos para inversión crecieron en $87.8 millones en el Q2 2024
- Los depósitos aumentaron en $35.3 millones en el Q2 2024
El banco incurrió en gastos de fusión y adquisición por valor de $562,000 relacionados con la adquisición de Community First. Después de la adquisición, Dogwood tendrá aproximadamente $2.2 mil millones en activos, $1.7 mil millones en préstamos y $1.8 mil millones en depósitos.
도그우드 주립은행 (OTCQX: DSBX)는 2024년 2분기 강력한 수익을 보고하며 2024년 8월 1일 커뮤니티 퍼스트 은행 법인의 인수를 마무리할 준비를 하고 있습니다. 주요 하이라이트는 다음과 같습니다:
- 2024년 2분기 순이익은 270만 달러로 증가했으며, 2024년 1분기 180만 달러 및 2023년 2분기 200만 달러와 비교됩니다.
- 순이자 마진은 2024년 2분기 3.53%로 증가했습니다.
- SBA 대출 수익은 2024년 2분기 270만 달러로 증가했습니다.
- 투자용으로 보유한 대출은 2024년 2분기에 8780만 달러 증가했습니다.
- 예금은 2024년 2분기에 3530만 달러 증가했습니다.
은행은 커뮤니티 퍼스트 인수와 관련하여 562,000달러의 합병 및 인수 비용을 발생시켰습니다. 인수 후, 도그우드는 약 22억 달러의 자산, 17억 달러의 대출 및 18억 달러의 예금을 보유하게 됩니다.
Dogwood State Bank (OTCQX: DSBX) a annoncé de solides bénéfices pour le deuxième trimestre 2024 alors qu'elle se prépare à finaliser son acquisition de Community First Bancorporation le 1er août 2024. Les faits saillants incluent :
- Le revenu net a augmenté à 2,7 millions de dollars au T2 2024, contre 1,8 million de dollars au T1 2024 et 2,0 millions de dollars au T2 2023
- La marge d'intérêt nette a augmenté à 3,53 % au T2 2024
- Les revenus des prêts SBA ont atteint 2,7 millions de dollars au T2 2024
- Les prêts détenus pour investissement ont augmenté de 87,8 millions de dollars au T2 2024
- Les dépôts ont augmenté de 35,3 millions de dollars au T2 2024
La banque a engagé des dépenses de fusions et d'acquisitions s'élevant à 562 000 dollars liées à l'acquisition de Community First. Après l'acquisition, Dogwood disposera d'environ 2,2 milliards de dollars d'actifs, de 1,7 milliard de dollars de prêts et de 1,8 milliard de dollars de dépôts.
Dogwood State Bank (OTCQX: DSBX) hat für das zweite Quartal 2024 starke Gewinne gemeldet, während sie sich auf den Abschluss der Übernahme von Community First Bancorporation am 1. August 2024 vorbereitet. Die wichtigsten Punkte sind:
- Der Nettogewinn stieg im Q2 2024 auf 2,7 Millionen USD, nach 1,8 Millionen USD im Q1 2024 und 2,0 Millionen USD im Q2 2023
- Die Nettomarge für Zinsen erhöhte sich im Q2 2024 auf 3,53%
- Die SBA-Darlehens-einnahmen stiegen im Q2 2024 auf 2,7 Millionen USD
- Die zur Investition gehaltenen Kredite nahmen im Q2 2024 um 87,8 Millionen USD zu
- Die Einlagen wuchsen im Q2 2024 um 35,3 Millionen USD
Die Bank hatte Kosten von 562.000 USD im Zusammenhang mit der Fusion und Übernahme von Community First. Nach der Übernahme wird Dogwood voraussichtlich etwa 2,2 Milliarden USD an Vermögenswerten, 1,7 Milliarden USD an Krediten und 1,8 Milliarden USD an Einlagen haben.
- None.
- None.
Second Quarter 2024 Financial Highlights
- Net income grew to
$2.7 million $1.8 million $2.0 million $562 thousand $958 thousand - Net income, after adjusting for merger and acquisition expenses (non-GAAP), improved to
$3.1 million $2.6 million $2.0 million - Net interest margin increased to
3.53% in Q2 2024 from3.41% in Q1 2024 and3.50% in Q2 2023. - SBA lending income rose to
$2.7 million $2.2 million $2.2 million - Loans held for investment grew by
$87.8 million $240.5 million - Deposits grew by
$35.3 million $185.6 million
"This week marks a pivotal moment as we prepare for the successful completion of our acquisition of Community First," commented Steve Jones, Chief Executive Officer. "We look forward to welcoming our new customers, employees, and shareholders to the Dogwood family. We believe this strategic transaction will position Dogwood for enhanced earnings growth and long-term value creation."
Mr.
Community First Acquisition
On January 31, 2024, Dogwood entered into a merger agreement to acquire Community First in an all-stock transaction. Under the terms of the merger agreement, each outstanding share of Community First common stock will be exchanged for 0.5875 shares of Dogwood voting common stock, and each outstanding share of Community First preferred stock will be exchanged for 64.7719 shares of Dogwood voting common stock. A total of 3.4 million shares of Dogwood voting common stock will be issued in the acquisition of Community First.
As of June 30, 2024, on a pro forma basis reflecting the acquisition of Community First, Dogwood had approximately
Q2 2024 Earnings Performance
Net income in Q2 2024 was
Adjusted net income (non-GAAP) in Q2 2024, which excludes the impact of merger and acquisition expenses, was
Net Interest Income
Net interest income was
Total average interest-earning assets increased to
Net interest margin improved to
Provision for Credit Losses and Asset Quality
Provision for credit losses was
Nonperforming loans were
Non-Interest Income
Non-interest income was
The weighted average net premium on SBA loans sold in Q2 2024 was
Non-Interest Expense
Non-interest expense was
Income Taxes
Income tax expense was
Year-to-Date 2024 Earnings Performance
Net income in the first six months of 2024 ("YTD 2024") was
Adjusted net income (non-GAAP) in YTD 2024, which excludes the impact of merger and acquisition expenses, was
Net Interest Income
Net interest income was
Total average interest-earning assets increased to
Provision for Credit Losses and Asset Quality
Provision for credit losses was
Non-Interest Income
Non-interest income was
The weighted average net premium on SBA loans sold in YTD 2024 was
Non-Interest Expense
Non-interest expense was
Income Taxes
Income tax expense was
About Dogwood State Bank
Dogwood State Bank is a state-chartered community bank headquartered in
Forward-Looking Statements
Statements made in this press release, other than those concerning historical financial information, may be considered forward-looking statements, which speak only as of the date of this press release and are based on current expectations and involve a number of assumptions. Forward-looking statements can be identified by words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. Our ability to predict results, or the actual effect of future plans or strategies, is inherently uncertain. Factors that could have a material effect on the Bank's operations and future prospects include but are not limited to: the expected growth opportunities or cost savings from the proposed merger (the "merger") of Community First and Community First Bank, Inc. with and into the Bank may not be fully realized or may take longer to realize than expected; the businesses of the Bank and Community First may not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; deposit attrition, operating costs, customer losses and business disruption prior to and following the merger, including adverse effects on relationships with employees and customers, may be greater than expected; the regulatory and shareholder approvals required for the merger may not be obtained; changes in interest rates, general economic and business conditions; legislative/regulatory changes; the monetary and fiscal policies of the
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with
Quarterly Financial Tables
Dogwood State Bank | |||||||||||
Income Statements | |||||||||||
Quarter Ended | Six Months Ended | ||||||||||
(Dollars in thousands, except per share data) | Jun 30 | Mar 31 | Dec 31 | Sept 30 | Jun 30 | Jun 30 | Jun 30 | ||||
Net interest income | $ 12,521 | $ 11,312 | $ 11,900 | $ 11,005 | $ 9,853 | $ 23,833 | $ 19,880 | ||||
Provision for credit losses | 2,017 | 921 | 1,638 | 1,063 | 1,725 | 2,938 | 2,464 | ||||
Net interest income after provision | 10,504 | 10,391 | 10,262 | 9,942 | 8,128 | 20,895 | 17,416 | ||||
Non-interest income | |||||||||||
SBA lending | 2,717 | 2,197 | 1,838 | 2,362 | 2,155 | 4,914 | 4,221 | ||||
Service charges and debit card income | 340 | 351 | 343 | 345 | 358 | 691 | 711 | ||||
Bank-owned life insurance | 219 | 211 | 201 | 187 | 183 | 430 | 363 | ||||
Securities gains (losses), net | (6) | 6 | 5 | 94 | (13) | - | (22) | ||||
Gain on payoff of FHLB advances | - | - | 1,230 | - | - | - | - | ||||
Other | 161 | 85 | 93 | 49 | 69 | 246 | 110 | ||||
Total non-interest income | 3,431 | 2,850 | 3,710 | 3,037 | 2,752 | 6,281 | 5,383 | ||||
Non-interest expense | |||||||||||
Compensation and benefits | 6,683 | 6,506 | 6,910 | 6,003 | 5,567 | 13,189 | 11,226 | ||||
Occupancy and equipment | 707 | 719 | 634 | 590 | 591 | 1,426 | 1,179 | ||||
Software | 344 | 346 | 343 | 346 | 359 | 690 | 686 | ||||
Loan related costs | 314 | 290 | 254 | 305 | 174 | 604 | 355 | ||||
Data processing | 315 | 261 | 245 | 263 | 247 | 576 | 502 | ||||
Professional fees | 235 | 225 | 242 | 250 | 236 | 460 | 479 | ||||
FDIC insurance | 204 | 240 | 239 | 222 | 169 | 444 | 273 | ||||
Merger and acquisition expenses | 562 | 958 | 14 | - | - | 1,520 | - | ||||
Amortization of other intangible assets | 4 | 11 | 18 | 24 | 31 | 15 | 69 | ||||
Other | 1,102 | 1,259 | 1,274 | 1,137 | 976 | 2,361 | 1,996 | ||||
Total non-interest expense | 10,470 | 10,815 | 10,173 | 9,140 | 8,350 | 21,285 | 16,765 | ||||
Net income before income taxes | 3,465 | 2,426 | 3,799 | 3,839 | 2,530 | 5,891 | 6,034 | ||||
Income tax expense | 811 | 588 | 865 | 902 | 550 | 1,399 | 1,257 | ||||
Net income | $ 2,654 | $ 1,838 | $ 2,934 | $ 2,937 | $ 1,980 | $ 4,492 | $ 4,777 | ||||
Pre-Tax, Pre-Provision Net Revenue (PPNR)(1) | $ 5,482 | $ 3,347 | $ 5,437 | $ 4,902 | $ 4,255 | $ 8,829 | $ 8,498 | ||||
Adjusted PPNR(1) | 6,044 | 4,305 | 5,451 | 4,902 | 4,255 | 10,349 | 8,498 | ||||
Per Share Data: | |||||||||||
Earnings per share (EPS) - basic | $ 0.18 | $ 0.13 | $ 0.20 | $ 0.20 | $ 0.14 | $ 0.31 | $ 0.34 | ||||
Adjusted EPS - basic(1) | 0.21 | 0.18 | 0.21 | 0.20 | 0.14 | 0.39 | 0.34 | ||||
Earnings per share - diluted | 0.17 | 0.12 | 0.20 | 0.20 | 0.13 | 0.30 | 0.33 | ||||
Adjusted EPS - diluted(1) | 0.20 | 0.17 | 0.20 | 0.20 | 0.13 | 0.37 | 0.33 | ||||
Performance Ratios: | |||||||||||
Return on average assets (ROA) | 0.71 % | 0.53 % | 0.80 % | 0.87 % | 0.67 % | 0.62 % | 0.83 % | ||||
Adjusted ROA(1) | 0.83 % | 0.74 % | 0.81 % | 0.87 % | 0.67 % | 0.79 % | 0.83 % | ||||
Return on average equity (ROE) | 6.16 % | 4.44 % | 7.15 % | 7.32 % | 5.05 % | 5.32 % | 6.47 % | ||||
Adjusted ROE(1) | 7.16 % | 6.22 % | 7.18 % | 7.32 % | 5.05 % | 6.70 % | 6.47 % | ||||
Return on tangible common equity (ROTCE)(1) | 6.42 % | 4.63 % | 7.48 % | 7.66 % | 5.29 % | 5.54 % | 6.79 % | ||||
Adjusted ROTCE(1) | 7.46 % | 6.50 % | 7.51 % | 7.66 % | 5.29 % | 6.99 % | 6.79 % | ||||
Net interest margin | 3.53 % | 3.41 % | 3.42 % | 3.43 % | 3.50 % | 3.47 % | 3.64 % | ||||
Efficiency ratio | 65.63 % | 76.37 % | 65.17 % | 65.09 % | 66.24 % | 70.68 % | 66.36 % | ||||
Adjusted efficiency ratio(1) | 62.11 % | 69.60 % | 65.08 % | 65.09 % | 66.24 % | 65.63 % | 66.36 % | ||||
(1) Denotes a non-GAAP measure. Refer to the non-GAAP reconciliation subsequently included in these materials for a reconciliation to the most directly | |||||||||||
comparable GAAP measure. "Adjusted" items exclude the impact of merger and acquisition expenses. | |||||||||||
Dogwood State Bank | ||||||||
Balance Sheets | ||||||||
Ending Balance | ||||||||
(In thousands, except per share data) | Jun 30 | Mar 31 | Dec 31 | Sept 30 | Jun 30 | |||
Assets | ||||||||
Cash and due from banks | $ 2,514 | $ 2,353 | $ 5,191 | $ 5,261 | $ 5,471 | |||
Interest-earning deposits with banks | 59,073 | 91,365 | 123,474 | 220,206 | 105,237 | |||
Total cash and cash equivalents | 61,587 | 93,718 | 128,665 | 225,467 | 110,708 | |||
Investment securities available for sale | 58,989 | 55,984 | 49,244 | 40,887 | 39,565 | |||
Investment securities held to maturity | 74,404 | 76,119 | 77,557 | 78,614 | 79,759 | |||
Marketable equity securities | 329 | 336 | 329 | 324 | 230 | |||
Total investment securities | 133,722 | 132,439 | 127,130 | 119,825 | 119,554 | |||
Loans held for sale | 11,030 | 8,146 | 15,274 | 20,329 | 13,884 | |||
Loans | 1,236,722 | 1,148,899 | 1,095,339 | 1,036,636 | 996,193 | |||
Less allowance for credit losses | (13,349) | (12,344) | (11,943) | (11,385) | (11,204) | |||
Loans, net | 1,223,373 | 1,136,555 | 1,083,396 | 1,025,251 | 984,989 | |||
Bank-owned life insurance | 27,888 | 27,669 | 27,458 | 27,257 | 27,069 | |||
Premises and equipment, net | 19,713 | 18,838 | 18,707 | 19,522 | 18,648 | |||
SBA servicing asset | 4,568 | 4,373 | 3,967 | 3,913 | 3,879 | |||
Goodwill | 7,016 | 7,016 | 7,016 | 7,016 | 7,016 | |||
Other intangible assets, net | - | 4 | 15 | 33 | 58 | |||
Other assets | 21,854 | 19,750 | 20,060 | 19,845 | 16,714 | |||
Total assets | $ 1,510,751 | $ 1,448,508 | $ 1,431,688 | $ 1,468,458 | $ 1,302,519 | |||
Liabilities and Shareholders' Equity | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ 379,465 | $ 302,705 | $ 291,910 | $ 390,018 | $ 308,418 | |||
Interest-bearing | 872,430 | 913,914 | 902,369 | 844,914 | 757,903 | |||
Total deposits | 1,251,895 | 1,216,619 | 1,194,279 | 1,234,932 | 1,066,321 | |||
FHLB advances | 60,000 | 40,000 | 50,000 | 50,000 | 60,000 | |||
Lease obligations | 10,726 | 10,959 | 11,187 | 11,416 | 10,602 | |||
Other liabilities | 13,162 | 11,459 | 11,719 | 12,012 | 7,937 | |||
Total liabilities | 1,335,783 | 1,279,037 | 1,267,185 | 1,308,360 | 1,144,860 | |||
Shareholders' equity | ||||||||
Common stock ( | 15,541 | 15,020 | 14,710 | 14,695 | 14,695 | |||
Additional paid-in capital | 137,431 | 135,077 | 132,373 | 132,113 | 131,859 | |||
Retained earnings | 26,897 | 24,244 | 22,406 | 19,473 | 16,536 | |||
Accumulated other comprehensive loss | (4,901) | (4,870) | (4,986) | (6,183) | (5,431) | |||
Total shareholders' equity | 174,968 | 169,471 | 164,503 | 160,098 | 157,659 | |||
Total liabilities and shareholders' equity | $ 1,510,751 | $ 1,448,508 | $ 1,431,688 | $ 1,468,458 | $ 1,302,519 | |||
Per Share Information: | ||||||||
Shares outstanding | 15,541 | 15,020 | 14,710 | 14,695 | 14,695 | |||
Book value per share | $ 11.26 | $ 11.28 | $ 11.18 | $ 10.89 | $ 10.73 | |||
Tangible book value per share(1) | $ 10.81 | $ 10.82 | $ 10.71 | $ 10.42 | $ 10.25 | |||
Capital Ratios: | ||||||||
Tier 1 leverage | 11.39 % | 11.75 % | 11.05 % | 11.72 % | 12.92 % | |||
Common equity Tier 1 capital | 12.64 % | 13.12 % | 13.47 % | 13.97 % | 14.28 % | |||
Tier 1 risk-based capital | 12.64 % | 13.12 % | 13.47 % | 13.97 % | 14.28 % | |||
Total risk-based capital | 13.81 % | 14.29 % | 14.65 % | 15.08 % | 15.41 % | |||
Tangible common equity(1) | 11.17 % | 11.27 % | 11.05 % | 10.47 % | 11.62 % | |||
(1) Denotes a non-GAAP measure. Refer to the non-GAAP reconciliation subsequently included in these materials for a reconciliation to the most directly comparable GAAP measure. | ||||||||
Dogwood State Bank | ||||||||
Asset Quality Measures | ||||||||
Quarter Ended | ||||||||
(Dollars in thousands) | Jun 30 | Mar 31 | Dec 31 | Sept 30 | Jun 30 | |||
Nonperforming Assets: | ||||||||
Non-accrual loans | $ 2,069 | $ 1,938 | $ 1,670 | $ 1,684 | $ 1,918 | |||
Loans 90 days or more past due and accruing | - | - | - | - | - | |||
Other real estate owned | - | - | - | - | - | |||
Total nonperforming assets | $ 2,069 | $ 1,938 | $ 1,670 | $ 1,684 | $ 1,918 | |||
Asset Quality Ratios: | ||||||||
Nonperforming loans/loans | 0.17 % | 0.17 % | 0.15 % | 0.16 % | 0.19 % | |||
Nonperforming assets/total assets | 0.14 % | 0.13 % | 0.12 % | 0.11 % | 0.15 % | |||
Nonperforming assets/loans and other real estate owned | 0.17 % | 0.17 % | 0.15 % | 0.16 % | 0.19 % | |||
Loans 30 days or more past due/loans (excludes non-accruals) | 0.21 % | 0.41 % | 0.23 % | 0.05 % | 0.04 % | |||
Allowance for Credit Losses (ACL): | ||||||||
ACL on Loans: | ||||||||
Balance, beginning of period | $ 12,344 | $ 11,943 | $ 11,385 | $ 11,204 | $ 10,235 | |||
CECL adjustment | - | - | - | - | - | |||
Loans charged off | (987) | (288) | (81) | (792) | (787) | |||
Recoveries of loans previously charged off | 11 | 9 | 40 | 29 | 7 | |||
Net loans charged off | (976) | (279) | (41) | (763) | (780) | |||
Provision for credit losses | 1,981 | 680 | 599 | 944 | 1,749 | |||
Balance, end of period | $ 13,349 | $ 12,344 | $ 11,943 | $ 11,385 | $ 11,204 | |||
ACL on Off-Balance Sheet Credit Exposures: | ||||||||
Balance, beginning of period | $ 2,301 | $ 2,060 | $ 1,020 | $ 901 | $ 925 | |||
Provision for credit losses | 36 | 241 | 1,040 | 119 | (24) | |||
Balance, end of period | $ 2,337 | $ 2,301 | $ 2,060 | $ 1,020 | $ 901 | |||
Allowance for Credit Losses Ratios: | ||||||||
Allowance for credit losses/loans | 1.08 % | 1.07 % | 1.09 % | 1.10 % | 1.12 % | |||
Allowance for credit losses/nonperforming loans | 645.19 % | 636.95 % | 715.15 % | 676.07 % | 584.15 % | |||
Net charge-offs/average loans (annualized) | 0.33 % | 0.10 % | 0.02 % | 0.30 % | 0.33 % | |||
Dogwood State Bank | ||||||||||||||||||||
Net Interest Margin Analysis | ||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||||||||||||||
(Dollars in thousands) | Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||
Interest-Earning Assets: | ||||||||||||||||||||
Loans | $ 1,192,611 | $ 19,547 | 6.59 % | $ 1,125,595 | $ 18,116 | 6.47 % | $ 943,379 | $ 13,995 | 5.95 % | |||||||||||
Investment securities | 133,164 | 1,066 | 3.22 % | 131,250 | 1,029 | 3.15 % | 120,947 | 808 | 2.68 % | |||||||||||
Interest-earning deposits with banks | 99,729 | 1,259 | 5.08 % | 78,807 | 975 | 4.98 % | 63,947 | 738 | 4.63 % | |||||||||||
Total interest-earning assets | 1,425,504 | 21,872 | 6.17 % | 1,335,652 | 20,120 | 6.06 % | 1,128,273 | 15,541 | 5.52 % | |||||||||||
Non interest-earning assets | 68,849 | 66,568 | 63,779 | |||||||||||||||||
Total assets | $ 1,494,353 | $ 1,402,220 | $ 1,192,052 | |||||||||||||||||
Interest-Bearing Liabilities: | ||||||||||||||||||||
Interest-bearing demand | $ 117,889 | $ 285 | 0.97 % | $ 124,309 | $ 293 | 0.95 % | $ 104,857 | $ 214 | 0.82 % | |||||||||||
Savings and money market | 606,729 | 6,239 | 4.14 % | 601,319 | 6,110 | 4.09 % | 369,055 | 2,769 | 3.01 % | |||||||||||
Time | 187,206 | 2,206 | 4.74 % | 170,964 | 1,967 | 4.63 % | 196,181 | 1,865 | 3.81 % | |||||||||||
Total interest-bearing deposits | 911,824 | 8,730 | 3.85 % | 896,592 | 8,370 | 3.75 % | 670,093 | 4,848 | 2.90 % | |||||||||||
FHLB advances | 41,099 | 552 | 5.40 % | 27,253 | 368 | 5.43 % | 67,253 | 779 | 4.65 % | |||||||||||
Lease obligations | 10,851 | 69 | 2.56 % | 11,086 | 70 | 2.54 % | 9,453 | 61 | 2.59 % | |||||||||||
Total interest-bearing liabilities | 963,774 | 9,351 | 3.90 % | 934,931 | 8,808 | 3.79 % | 746,799 | 5,688 | 3.05 % | |||||||||||
Non-interest bearing deposits | 343,732 | 288,518 | 280,580 | |||||||||||||||||
Other liabilities | 13,491 | 12,237 | 7,374 | |||||||||||||||||
Shareholders' equity | 173,356 | 166,534 | 157,299 | |||||||||||||||||
Total liabilities and shareholders' equity | $ 1,494,353 | $ 1,402,220 | $ 1,192,052 | |||||||||||||||||
Net interest income and interest rate spread | $ 12,521 | 2.27 % | $ 11,312 | 2.27 % | $ 9,853 | 2.47 % | ||||||||||||||
Net interest margin | 3.53 % | 3.41 % | 3.50 % | |||||||||||||||||
Cost of funds | 2.88 % | 2.90 % | 2.22 % | |||||||||||||||||
Cost of deposits | 2.80 % | 2.84 % | 2.05 % | |||||||||||||||||
Six Months Ended | ||||||||||||||||||||
June 30, 2024 | June 30, 2023 | |||||||||||||||||||
(Dollars in thousands) | Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||
Interest-Earning Assets: | ||||||||||||||||||||
Loans | $ 1,159,104 | $ 37,663 | 6.53 % | $ 922,073 | $ 26,732 | 5.85 % | ||||||||||||||
Investment securities | 132,206 | 2,095 | 3.19 % | 121,629 | 1,628 | 2.70 % | ||||||||||||||
Interest-earning deposits with banks | 89,268 | 2,235 | 5.03 % | 57,925 | 1,271 | 4.42 % | ||||||||||||||
Total interest-earning assets | 1,380,578 | 41,993 | 6.12 % | 1,101,627 | 29,631 | 5.42 % | ||||||||||||||
Non interest-earning assets | 67,708 | 62,535 | ||||||||||||||||||
Total assets | $ 1,448,286 | $ 1,164,162 | ||||||||||||||||||
Interest-Bearing Liabilities: | ||||||||||||||||||||
Interest-bearing demand | $ 121,099 | $ 577 | 0.96 % | $ 106,809 | $ 390 | 0.74 % | ||||||||||||||
Savings and money market | 604,024 | 12,350 | 4.11 % | 364,542 | 4,881 | 2.70 % | ||||||||||||||
Time | 179,085 | 4,174 | 4.69 % | 192,895 | 3,332 | 3.48 % | ||||||||||||||
Total interest-bearing deposits | 904,208 | 17,101 | 3.80 % | 664,246 | 8,603 | 2.61 % | ||||||||||||||
FHLB advances | 34,176 | 920 | 5.41 % | 44,751 | 1,035 | 4.66 % | ||||||||||||||
Lease obligation | 10,968 | 139 | 2.55 % | 9,540 | 113 | 2.39 % | ||||||||||||||
Total interest-bearing liabilities | 949,352 | 18,160 | 3.85 % | 718,537 | 9,751 | 2.74 % | ||||||||||||||
Non-interest bearing deposits | 316,125 | 289,549 | ||||||||||||||||||
Other liabilities | 12,865 | 7,156 | ||||||||||||||||||
Shareholders' equity | 169,944 | 148,920 | ||||||||||||||||||
Total liabilities and shareholders' equity | $ 1,448,286 | $ 1,164,162 | ||||||||||||||||||
Net interest income and interest rate spread | $ 23,833 | 2.27 % | $ 19,880 | 2.69 % | ||||||||||||||||
Net interest margin | 3.47 % | 3.64 % | ||||||||||||||||||
Cost of funds | 3.80 % | 1.95 % | ||||||||||||||||||
Cost of deposits | 3.75 % | 1.82 % | ||||||||||||||||||
Dogwood State Bank | |||||||||||
Non-GAAP Reconciliation | |||||||||||
Quarter Ended | Six Months Ended | ||||||||||
(In thousands, except per share data) | Jun 30 | Mar 31 | Dec 31 | Sept 30 | Jun 30 | Jun 30 | Jun 30 | ||||
Net income and EPS: | |||||||||||
Net income (GAAP) | $ 2,654 | $ 1,838 | $ 2,934 | $ 2,937 | $ 1,980 | $ 4,492 | $ 4,777 | ||||
Adjust for merger and acquisition expenses, net of tax | 433 | 738 | 11 | - | - | 1,171 | - | ||||
Adjusted net income (non-GAAP) | $ 3,087 | $ 2,576 | $ 2,945 | $ 2,937 | $ 1,980 | $ 5,663 | $ 4,777 | ||||
Weighted average common shares outstanding | |||||||||||
Basic | 14,905 | 14,377 | 14,329 | 14,329 | 14,329 | 14,641 | 13,971 | ||||
Diluted | 15,480 | 15,075 | 15,039 | 15,026 | 15,017 | 15,202 | 14,642 | ||||
EPS (GAAP) | |||||||||||
Basic | $ 0.18 | $ 0.13 | $ 0.20 | $ 0.20 | $ 0.14 | $ 0.31 | $ 0.34 | ||||
Diluted | 0.17 | 0.12 | 0.20 | 0.20 | 0.13 | 0.30 | 0.33 | ||||
Adjusted EPS (non-GAAP) | |||||||||||
Basic | $ 0.21 | $ 0.18 | $ 0.21 | $ 0.20 | $ 0.14 | $ 0.39 | $ 0.34 | ||||
Diluted | 0.20 | 0.17 | 0.20 | 0.20 | 0.13 | 0.37 | 0.33 | ||||
PPNR: | |||||||||||
Net income (GAAP) | $ 2,654 | $ 1,838 | $ 2,934 | $ 2,937 | $ 1,980 | $ 4,492 | $ 4,777 | ||||
Add: | |||||||||||
Provision for credit losses | 2,017 | 921 | 1,638 | 1,063 | 1,725 | 2,938 | 2,464 | ||||
Income tax expense | 811 | 588 | 865 | 902 | 550 | 1,399 | 1,257 | ||||
PPNR (non-GAAP) | 5,482 | 3,347 | 5,437 | 4,902 | 4,255 | 8,829 | 8,498 | ||||
Less: merger and acquisition expenses | 562 | 958 | 14 | - | - | 1,520 | - | ||||
Adjusted PPNR (non-GAAP) | $ 6,044 | $ 4,305 | $ 5,451 | $ 4,902 | $ 4,255 | $ 10,349 | $ 8,498 | ||||
ROA: | |||||||||||
Net income (GAAP) | $ 2,654 | $ 1,838 | $ 2,934 | $ 2,937 | $ 1,980 | $ 4,492 | $ 4,777 | ||||
Adjusted net income (non-GAAP) | 3,087 | 2,576 | 2,945 | 2,937 | 1,980 | 5,663 | 4,777 | ||||
Average assets | 1,494,353 | 1,402,220 | 1,448,929 | 1,339,667 | 1,192,052 | 1,448,286 | 1,164,162 | ||||
ROA | 0.71 % | 0.53 % | 0.80 % | 0.87 % | 0.67 % | 0.62 % | 0.83 % | ||||
Adjusted ROA (non-GAAP) | 0.83 % | 0.74 % | 0.81 % | 0.87 % | 0.67 % | 0.79 % | 0.83 % | ||||
ROE and ROTCE: | |||||||||||
Net income (GAAP) | $ 2,654 | $ 1,838 | $ 2,934 | $ 2,937 | $ 1,980 | $ 4,492 | $ 4,777 | ||||
Adjusted net income (non-GAAP) | 3,087 | 2,576 | 2,945 | 2,937 | 1,980 | 5,663 | 4,777 | ||||
Average shareholders' equity (GAAP) | 173,356 | 166,534 | 162,703 | 159,209 | 157,299 | 169,944 | 148,920 | ||||
Less: average goodwill and other intangible assets, net | 7,018 | 7,027 | 7,041 | 7,063 | 7,091 | 7,022 | 7,109 | ||||
Average tangible common equity (non-GAAP) | 166,338 | 159,507 | 155,662 | 152,146 | 150,208 | 162,922 | 141,811 | ||||
ROE | 6.16 % | 4.44 % | 7.15 % | 7.32 % | 5.05 % | 5.32 % | 6.47 % | ||||
Adjusted ROE (non-GAAP) | 7.16 % | 6.22 % | 7.18 % | 7.32 % | 5.05 % | 6.70 % | 6.47 % | ||||
ROTCE (non-GAAP) | 6.42 % | 4.63 % | 7.48 % | 7.66 % | 5.29 % | 5.54 % | 6.79 % | ||||
Adjusted ROTCE (non-GAAP) | 7.46 % | 6.50 % | 7.51 % | 7.66 % | 5.29 % | 6.99 % | 6.79 % | ||||
Efficiency Ratio: | |||||||||||
Non-interest expense (GAAP) | $ 10,470 | $ 10,815 | $ 10,173 | $ 9,140 | $ 8,350 | $ 21,285 | $ 16,765 | ||||
Less: merger and acquisition expenses | 562 | 958 | 14 | - | - | 1,520 | - | ||||
Adjusted non-interest expense (non-GAAP) | 9,908 | 9,857 | 10,159 | 9,140 | 8,350 | 19,765 | 16,765 | ||||
Net interest income | 12,521 | 11,312 | 11,900 | 11,005 | 9,853 | 23,833 | 19,880 | ||||
Non-interest income | 3,431 | 2,850 | 3,710 | 3,037 | 2,752 | 6,281 | 5,383 | ||||
Total revenue | 15,952 | 14,162 | 15,610 | 14,042 | 12,605 | 30,114 | 25,263 | ||||
Efficiency ratio (non-interest expense / total revenue) | 65.63 % | 76.37 % | 65.17 % | 65.09 % | 66.24 % | 70.68 % | 66.36 % | ||||
Adjusted efficiency ratio (non-GAAP) | 62.11 % | 69.60 % | 65.08 % | 65.09 % | 66.24 % | 65.63 % | 66.36 % | ||||
Tangible Book Value per Share and Tangible Common Equity Ratio: | |||||||||||
Shareholders' equity (GAAP) | $ 174,968 | $ 169,471 | $ 164,503 | $ 160,098 | $ 157,659 | $ 174,968 | $ 157,659 | ||||
Less: goodwill and other intangible assets, net | 7,016 | 7,020 | 7,031 | 7,049 | 7,074 | 7,016 | 7,074 | ||||
Tangible common equity (non-GAAP) | 167,952 | 162,451 | 157,472 | 153,049 | 150,585 | 167,952 | 150,585 | ||||
Common shares outstanding | 15,541 | 15,020 | 14,710 | 14,695 | 14,695 | 15,541 | 14,695 | ||||
Book value per share | $ 11.26 | $ 11.28 | $ 11.18 | $ 10.89 | $ 10.73 | $ 11.26 | $ 10.73 | ||||
Tangible book value per share (non-GAAP) | 10.81 | 10.82 | 10.71 | 10.42 | 10.25 | 10.81 | 10.25 | ||||
Total assets (GAAP) | $ 1,510,751 | $ 1,448,508 | $ 1,431,688 | $ 1,468,458 | $ 1,302,519 | $ 1,510,751 | $ 1,302,519 | ||||
Less: goodwill and other intangible assets, net | 7,016 | 7,020 | 7,031 | 7,049 | 7,074 | 7,016 | 7,074 | ||||
Tangible assets (non-GAAP) | 1,503,735 | 1,441,488 | 1,424,657 | 1,461,409 | 1,295,445 | 1,503,735 | 1,295,445 | ||||
Tangible common equity to tangible assets (non-GAAP) | 11.17 % | 11.27 % | 11.05 % | 10.47 % | 11.62 % | 11.17 % | 11.62 % | ||||
View original content:https://www.prnewswire.com/news-releases/dogwood-state-bank-reports-higher-second-quarter-2024-earnings-reflecting-strong-operating-momentum-heading-into-community-first-acquisition-302209207.html
SOURCE Dogwood State Bank
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