Limestone Bancorp Reports Net Income of $4.3 million, or $0.57 per Share, for the 3rd Quarter of 2021 and $11.5 million, or $1.51 per Diluted Share, for the Nine Months Ended September 30, 2021

Rhea-AI Summary

Limestone Bancorp reported a significant increase in net income for Q3 2021, reaching $4.3 million or $0.57 per share, up from $2.1 million in Q3 2020. For the first nine months of 2021, net income was $11.5 million. The company approved a $3.0 million share repurchase program. Total assets rose by $13.9 million, while deposits grew by $8.9 million. The net interest margin improved to 3.61%, supported by increased net interest income of $11.6 million for Q3. The provision for loan losses was $300,000.

Positive

• Net income for Q3 2021 increased to $4.3 million, compared to $2.1 million in Q3 2020.
• Approved a $3.0 million share repurchase program.
• Net interest income rose to $11.6 million for Q3 2021, up from $9.9 million in Q3 2020.
• Net interest margin improved to 3.61% in Q3 2021.

Negative

• Loan portfolio decreased from $974.5 million in Q3 2020 to $968.1 million in Q3 2021.
• PPP loans dropped significantly from $42.3 million in Q3 2020 to $5.7 million in Q3 2021.
• Average loans decreased to $952.6 million for Q3 2021 from $963.5 million for Q3 2020.

Announces $3.0 Million Share Repurchase Program

LOUISVILLE, Ky.--(BUSINESS WIRE)-- Limestone Bancorp, Inc. (NASDAQ: LMST) (“the Company”), parent company of Limestone Bank (“the Bank”), today reported unaudited results for the third quarter of 2021. Net income available to common shareholders for the third quarter of 2021 was $4.3 million, or $0.57 per basic and diluted common share, compared with $2.1 million, or $0.28 per basic and diluted share, for the third quarter of 2020. Net income for the nine months ended September 30, 2021, was $11.5 million, or $1.51 per diluted common share, compared with net income of $5.9 million, or $0.79 per diluted share, for the nine months ended September 30, 2020.

At its meeting on October 20, 2021, the Board of Directors approved a share repurchase program authorizing the Company to purchase up to $3.0 million of the Company’s Common Shares over time. Subject to applicable rules and regulations, the shares may be purchased from time to time in the open market or in privately negotiated transactions. Such purchases will be at times and in amounts as the Company deems appropriate, based on factors such as availability of shares, market conditions, the trading price of the shares, the Company’s financial performance and liquidity, legal and regulatory capital requirements, and other business conditions. The repurchase program does not obligate the Company to acquire any particular number of common shares, and it may be modified, terminated, or suspended at any time at the Company’s discretion. The share repurchase program expires on December 31, 2022.

Assets increased $13.9 million, or 1.0%, during the third quarter. The Company grew deposits by $8.9 million, or 0.8%, and reduced lower earning cash and cash equivalents by $26.6 million quarter over quarter. The loan portfolio increased $20.7 million, or 2.2%, during the third quarter to $968.1 million at September 30, 2021, compared to $947.4 million at June 30, 2021, and decreased from $974.5 million at September 30, 2020. SBA Paycheck Protection Program (“PPP”) loans totaled $5.7 million at September 30, 2021, compared to $21.0 million at June 30, 2021, and $42.3 million at September 30, 2020.

Net Interest Income and Average Earning Assets – Net interest income increased to $11.6 million for the third quarter of 2021, compared to $10.9 million for the second quarter of 2021, and $9.9 million for the third quarter of 2020. Average loans decreased to $952.6 million for the third quarter of 2021, compared to $961.9 million for the second quarter of 2021, and $963.5 million for the third quarter of 2020.

Net interest margin increased to 3.61% for the third quarter of 2021, compared with 3.45% for the second quarter of 2021, and 3.27% for the third quarter of 2020. The yield on earning assets increased to 4.03% in the third quarter of 2021, compared to 3.91% in the second quarter of 2021, and 3.98% in the third quarter of 2020. The yield on earning assets in the first nine months of 2021 was negatively impacted by lower interest rates on the Bank’s fed funds, certain floating rate investment securities, loans with variable rate pricing features, and new loans originated in the lower interest rate environment, including PPP loans which carry a rate of 1.0%. The negative impact of lower rates was offset by an increase in loan fee income discussed below.

Loan fee income can meaningfully impact net interest income, loan yields, and net interest margin. The amount of loan fee income included in total interest income was $1.5 million, $933,000, and $387,000 for the quarters ended September 30, 2021, June 30, 2021, and September 30, 2020, respectively. This represents 48 basis points, 29 basis points, and 13 basis points of yield on earning assets and net interest margin for the quarters ended September 30, 2021, June 30, 2021, and September 30, 2020, respectively. Loan fee income for the third quarter of 2021 included $1.4 million in fees earned on SBA PPP loans, compared to $692,000 in the second quarter of 2021, and $195,000 in the third quarter of 2020, which represents 43 basis points, 22 basis points, and six basis points of earning asset yield and net interest margin for those quarters, respectively.

The cost of interest-bearing liabilities was 0.56% for the third quarter of 2021, compared to 0.61% in the second quarter of 2021, and 0.90% in the third quarter of 2020. The cost of interest-bearing liabilities continued to decline as a result of continued improvement in deposit mix, as well as the downward repricing of time deposits. Time deposits declined $23.1 million during the third quarter of 2021 as approximately $66.0 million of time deposits with an average rate of 0.43% matured and redeemed or repriced at lower interest rates. During the third quarter of 2021, newly originated or renewed time deposits had an average rate of 0.17% and an average term of approximately 14 months.

Net interest income increased to $33.2 million for the first nine months of 2021, compared with $29.8 million for the first nine months of 2020. Average loans decreased to $959.6 million for the first nine months of 2021, compared to $963.7 million for the first nine months of 2020. PPP loans averaged $19.4 million and $20.6 million for the first nine months of 2021 and 2020, respectively.

Net interest margin increased to 3.53% in the first nine months of 2021, compared with 3.30% for the first nine months of 2020. The yield on earning assets decreased to 4.00% for the first nine months of 2021, compared to 4.23% for the first nine months of 2020. The amount of loan fee income included in total interest income was $3.3 million and $1.1 million for the nine months ended September 30, 2021 and 2020, respectively. This represents 35 basis points and 13 basis points of yield on earning assets and net interest margin for the nine months ended September 30, 2021 and 2020, respectively. Loan fee income included PPP fees of $2.5 million and $373,000 for the nine months ended September 30, 2021 and 2020, respectively, which represents 27 basis points and five basis points of earning asset yield and net interest margin for those nine-month periods, respectively. The cost of interest-bearing liabilities was 0.62% for the first nine months of 2021, compared to 1.15% in the first nine months of 2020.

As of September 30, 2021, time deposits comprise $280.5 million of the Company’s liabilities including $48.2 million with a current average rate of 0.32%, which reprice or mature in the fourth quarter of 2021. The following table denotes contractual time deposit maturities and average rates as of September 30, 2021:

Maturity Quarter			As of September 30, 2021 (in thousands)					Weighted Average Rate
Q4-2021				48,216				0.32
Q1-2022				53,977				0.34
Q2-2022				43,044				0.34
Q3-2022				21,846				0.43
Thereafter				113,462				0.84
Total time deposits			$	280,545				0.55	%

Provision and Allowance for Loan Losses – The allowance for loan losses to total loans was 1.34% at September 30, 2021, compared to 1.33% at June 30, 2021, and 1.18% at September 30, 2020. A provision for loan loss of $300,000 and $650,000, or $0.03 and $0.06 per common share after taxes, was recorded in the third quarter and first nine months of 2021, respectively, compared to $1.4 million and $3.5 million, or $0.14 and $0.37 per common share after taxes, in the third quarter and the first nine months of 2020, respectively. The 2021 loan loss provisions were attributable to net loan charge-offs and growth trends within the portfolio during the third quarter and year, while the provisions for 2020 were largely attributable to the uncertainty surrounding the COVID-19 pandemic related economic and business disruptions. Net loan recoveries were $36,000 and net loan charge-offs were $120,000, for the three and nine months ended September 30, 2021, respectively, compared to net loan charge-offs of $97,000 and $395,000, for the three and nine months ended September 30, 2020, respectively. At September 30, 2021, the allowance for loan losses remained elevated in relation to recent historical levels due to continued uncertainty surrounding the COVID-19 pandemic.

While the U.S. Government’s economic responses to the COVID-19 pandemic through monetary policy and fiscal stimulus have provided meaningful support to the economy, management deemed it prudent to continue to maintain its qualitative environmental factor in the allowance for loan losses to account for the ongoing pandemic risk. The Bank also granted eligible loan modifications under Section 4013 of the CARES Act. CARES Act loan modifications were $4.5 million as of September 30, 2021 and June 30, 2021, and $64.9 million at September 30, 2020. At September 30, 2021, there is one commercial real estate loan secured by a retail entertainment facility totaling $4.4 million, which remains subject to, and is performing in accordance with, a COVID-19 modification. The loan is graded substandard, has been evaluated under ASC-310-10, and allocated a specific reserve of $2.2 million.

Non-interest Income and Expense – Non-interest income for the third quarter of 2021 increased $694,000 to $2.4 million, compared with $1.7 million for the third quarter of 2020. The increase was primarily related to a $465,000 gain on the call of a corporate bond from the Bank’s available for sale securities portfolio. The bond was called before maturity and owned at a discount to par value. Bank card interchange fees also increased $163,000 from the third quarter of 2020 due to an increase in debit card transactions. Non-interest expense decreased $29,000, or 0.4%, to $8.1 million for the third quarter of 2021, compared with $8.1 million for the third quarter of 2020. The decrease in the third quarter of 2021 was primarily due to a decrease in deposit and state franchise tax expense of $270,000, as a result of the elimination of the Kentucky bank franchise tax discussed below. This decrease was partially offset by an increase in salaries and employee benefits of $169,000 as a result of an increase in average FTEs as compared to the third quarter of 2020.

Non-interest income for the first nine months of 2021 increased $1.4 million to $6.5 million, compared with $5.1 million for the first nine months of 2020. The increase was primarily due to an increase in bank card interchange fees of $583,000 as a result of an increase in debit card transactions, a $191,000 gain on the sale of OREO from the second quarter of 2021, and a $465,000 gain on the call of an available for sale bond discussed above. Non-interest expense decreased $562,000, or 2.3%, to $24.0 million for the first nine months of 2021, compared with $24.6 million for the first nine months of 2020. The decrease was primarily attributable to a decrease of $810,000 in deposit and state franchise tax expense. This decrease was partially offset by an increase in deposit account related expense of $194,000 due to an increase in debit card transactions and an increase in FDIC insurance of $167,000 due to no expense being recorded during the first quarter of 2020 as the Bank was utilizing assessment credits.

Income Taxes – Income tax expense was $1.4 million and $3.6 million for the third quarter of 2021 and for the first nine months of 2021, respectively, compared with $190,000 and $944,000 for the third quarter of 2020 and for the first nine months of 2020, respectively. Effective January 1, 2021, the state of Kentucky eliminated the bank franchise tax, which was previously recorded as a non-interest expense, and implemented a state income tax at a statutory rate of 5%. State income tax expense was $275,000 and $724,000 for the third quarter of 2021 and for the first nine months of 2021, respectively, compared to a state income tax benefit of $244,000 and $395,000 for the third quarter of 2020 and for the first nine months of 2020, respectively, which were related to the establishment of a net deferred tax asset due to the tax law change.

About Limestone Bancorp, Inc.

Limestone Bancorp, Inc. (NASDAQ: LMST) is a Louisville, Kentucky-based bank holding company which operates banking centers in 14 counties through its wholly-owned subsidiary Limestone Bank. The Bank’s markets include metropolitan Louisville in Jefferson County and the surrounding counties of Bullitt and Henry and extend south along the Interstate 65 corridor. The Bank serves south central, southern, and western Kentucky from banking centers in Barren, Butler, Daviess, Edmonson, Green, Hardin, Hart, Ohio, and Warren counties. The Bank also has banking centers in Lexington, Kentucky, the second largest city in the state, and Frankfort, Kentucky, the state capital. Limestone Bank is a traditional community bank with a wide range of personal and business banking products and services.

Forward-Looking Statements

Statements in this press release relating to Limestone Bancorp’s plans, objectives, expectations or future performance are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “may,” “should,” “anticipate,” “estimate,” “expect,” “intend,” “objective,” “possible,” “seek,” “plan,” “strive” or similar words, or negatives of these words, identify forward-looking statements that involve risks and uncertainties. Although the Company's management believes the assumptions underlying the forward-looking statements contained herein are reasonable, any of these assumptions could be inaccurate. Therefore, there can be no assurance the forward-looking statements included herein will prove to be accurate. Factors that could cause actual results to differ from those discussed in forward-looking statements include, but are not limited to: the impact and duration of the COVID-19 pandemic and national, state and local emergency conditions the pandemic has produced; economic conditions both generally and more specifically in the markets in which the Company and its subsidiaries operate; competition for the Company's customers from other providers of financial services; government legislation and regulation, which change from time to time and over which the Company has no control; changes in interest rates; material unforeseen changes in liquidity, results of operations, or financial condition of the Company's customers; and other risks detailed in the Company's filings with the Securities and Exchange Commission, all of which are difficult to predict and many of which are beyond the control of the Company. See Risk Factors outlined in the Company's Form 10-K for the year ended December 31, 2020.

Additional Information

Unaudited supplemental financial information for the third quarter ending September 30, 2021, follows.

LIMESTONE BANCORP, INC. Unaudited Financial Information (in thousands, except share and per share data)
	Three			Three			Nine				Nine
	Months			Months			Months				Months
	Ended			Ended			Ended				Ended
	9/30/21			9/30/20			9/30/21				9/30/20
Income Statement Data
Interest income	$	12,975		$	12,094		$		37,601		$	38,147
Interest expense		1,354			2,151				4,386			8,332
Net interest income		11,621			9,943				33,215			29,815
Provision for loan losses		300			1,350				650			3,500
Net interest income after provision		11,321			8,593				32,565			26,315
Service charges on deposit accounts		583			565				1,651			1,674
Bank card interchange fees		1,044			881				3,077			2,494
Bank owned life insurance income		112			113				420			325
Gain on sale of OREO		—			—				191			—
Gain (loss) on sales and calls of securities, net		465			—				460			(5	)
Other		232			183				656			579
Non-interest income		2,436			1,742				6,455			5,067
Salaries & employee benefits		4,582			4,413				13,531			13,584
Occupancy and equipment		1,024			1,008				3,063			2,990
Professional fees		219			261				701			704
Marketing expense		200			134				561			452
FDIC insurance		90			81				315			148
Data processing expense		378			382				1,133			1,121
Deposit and state franchise tax		90			360				270			1,080
Deposit account related expense		545			487				1,592			1,398
Communications expense		153			201				520			666
Insurance expense		105			102				324			316
Postage and delivery		169			156				460			476
Other		495			494				1,518			1,615
Non-interest expense		8,050			8,079				23,988			24,550
Income before income taxes		5,707			2,256				15,032			6,832
Income tax expense		1,366			190				3,568			944
Net income	$	4,341		$	2,066		$		11,464		$	5,888
Weighted average shares – Basic		7,602,686			7,499,223			7,591,800				7,489,795
Weighted average shares – Diluted		7,602,686			7,499,223			7,591,800				7,489,795
Basic earnings per common share	$	0.57		$	0.28		$	1.51			$	0.79
Diluted earnings per common share	$	0.57		$	0.28		$	1.51			$	0.79
Cash dividends declared per common share	$	0.00		$	0.00		$	0.00			$	0.00

LIMESTONE BANCORP, INC. Unaudited Financial Information (in thousands, except share and per share data)
		Three		Three			Three				Three			Three
		Months		Months			Months				Months			Months
		Ended		Ended			Ended				Ended			Ended
		9/30/21		6/30/21			3/31/21				12/31/20			9/30/20
Income Statement Data
Interest income	$	12,975		$	12,376		$	12,250		$	12,606		$	12,094
Interest expense		1,354			1,462			1,570			1,820			2,151
Net interest income		11,621			10,914			10,680			10,786			9,943
Provision for loan losses		300			—			350			900			1,350
Net interest income after provision		11,321			10,914			10,330			9,886			8,593
Service charges on deposit accounts		583			520			548			594			565
Bank card interchange fees		1,044			1,073			960			882			881
Bank owned life insurance income		112			143			165			99			113
Gain on sale of OREO		—			191			—			—			—
Gain (loss) on sales and calls of securities, net		465			(5	)		—			—			—
Other		232			213			211			202			183
Non-interest income		2,436			2,135			1,884			1,777			1,742
Salaries & employee benefits		4,582			4,467			4,482			4,167			4,413
Occupancy and equipment		1,024			979			1,060			1,011			1,008
Professional fees		219			246			236			233			261
Marketing expense		200			179			182			177			134
FDIC insurance		90			90			135			81			81
Data processing expense		378			377			378			381			382
Deposit and state franchise tax		90			90			90			395			360
Deposit account related expense		545			556			491			492			487
Communications expense		153			194			173			190			201
Insurance expense		105			115			104			112			102
Postage and delivery		169			139			152			151			156
Other		495			522			501			476			494
Non-interest expense		8,050			7,954			7,984			7,866			8,079
Income before income taxes		5,707			5,095			4,230			3,797			2,256
Income tax expense		1,366			1,194			1,008			680			190
Net income	$	4,341		$	3,901		$	3,222		$	3,117		$	2,066
Weighted average shares – Basic		7,602,686			7,597,202			7,575,211			7,499,323			7,499,223
Weighted average shares – Diluted		7,602,686			7,597,202			7,575,211			7,499,323			7,499,223
Basic earnings per common share	$	0.57		$	0.51		$	0.43		$	0.42		$	0.28
Diluted earnings per common share	$	0.57		$	0.51		$	0.43		$	0.42		$	0.28
Cash dividends declared per common share	$	0.00		$	0.00		$	0.00		$	0.00		$	0.00

LIMESTONE BANCORP, INC. Unaudited Financial Information (in thousands, except share and per share data)
		As of
		9/30/21		6/30/21			3/31/21				12/31/20			9/30/20
Assets
Loans	$	968,088		$	947,425		$	978,865		$	962,081		$	974,468
Allowance for loan losses		(12,973	)		(12,637	)		(12,755	)		(12,443	)		(11,481	)
Net loans		955,115			934,788			966,110			949,638			962,987
Securities held to maturity		47,539			46,717			41,254			—			—
Securities available for sale		203,548			182,154			177,690			203,862			203,544
Federal funds sold & interest-bearing deposits		44,909			75,536			74,047			56,863			24,358
Cash and due from financial institutions		13,579			9,584			9,800			10,830			7,593
Premises and equipment		21,623			21,912			20,405			18,533			18,572
Premises held for sale		980			980			1,035			1,060			1,110
Bank owned life insurance		23,845			23,738			23,601			23,441			23,347
FHLB Stock		5,116			5,449			5,810			5,887			5,962
Other real estate owned		—			—			1,765			1,765			1,625
Deferred taxes, net		22,161			23,452			24,992			25,714			26,540
Goodwill		6,252			6,252			6,252			6,252			6,252
Intangible assets		2,053			2,117			2,181			2,244			2,308
Accrued interest receivable and other assets		6,128			6,231			6,769			6,213			7,426
Total Assets	$	1,352,848		$	1,338,910		$	1,361,711		$	1,312,302		$	1,291,624
Liabilities and Equity
Certificates of deposit	$	280,545		$	303,668		$	355,309		$	367,552		$	398,429
Interest checking		239,923			216,344			211,322			190,625			168,735
Money market		198,470			191,773			180,137			175,785			174,588
Savings		163,018			160,257			151,340			142,623			134,962
Total interest-bearing deposits		881,956			872,042			898,108			876,585			876,714
Demand deposits		266,035			267,059			268,882			243,022			217,675
Total deposits		1,147,991			1,139,101			1,166,990			1,119,607			1,094,389
FHLB advances		20,000			20,000			20,613			20,623			30,634
Junior subordinated debentures		21,000			21,000			21,000			21,000			21,000
Subordinated capital note		25,000			25,000			25,000			25,000			25,000
Accrued interest payable and other liabilities		10,193			9,850			8,588			10,048			8,315
Total liabilities		1,224,184			1,214,951			1,242,191			1,196,278			1,179,338
Total stockholders’ equity		128,664			123,959			119,520			116,024			112,286
Total Liabilities and Stockholders’ Equity	$	1,352,848		$	1,338,910		$	1,361,711		$	1,312,302		$	1,291,624
Ending shares outstanding		7,602,686			7,602,686			7,594,499			7,498,865			7,499,183
Book value per common share	$	16.92		$	16.30		$	15.74		$	15.47		$	14.97
Tangible book value per common share		15.83			15.20			14.63			14.34			13.83

LIMESTONE BANCORP, INC. Unaudited Financial Information (in thousands, except share and per share data)
		As of
		9/30/21			6/30/21			3/31/21			12/31/20			9/30/20
Average Balance Sheet Data
Assets	$	1,369,372		$	1,361,080		$	1,316,878		$	1,304,715		$	1,295,814
Loans		952,567			961,922			964,353			965,339			963,486
Earning assets		1,284,188			1,275,363			1,230,610			1,220,043			1,213,039
Deposits		1,166,785			1,164,524			1,125,943			1,115,985			1,111,865
Long-term debt and advances		66,000			66,000			66,617			67,280			65,769
Interest bearing liabilities		954,007			956,172			941,342			951,620			955,661
Stockholders’ equity		126,556			121,386			117,663			113,868			110,930
Quarterly Performance Ratios
Return on average assets		1.26	%		1.15	%		0.99	%		0.95	%		0.63	%
Return on average equity		13.61			12.89			11.11			10.89			7.41
Yield on average earning assets (tax equivalent)		4.03			3.91			4.05			4.12			3.98
Cost of interest-bearing liabilities		0.56			0.61			0.68			0.76			0.90
Net interest margin (tax equivalent)		3.61			3.45			3.53			3.53			3.27
Efficiency ratio		59.23			60.93			63.55			62.61			69.14
Non-interest expense to average assets		2.33			2.34			2.46			2.40			2.48
Asset Quality Data
Nonaccrual loans	$	1,627		$	1,530		$	1,996		$	1,676		$	2,038
Troubled debt restructurings on accrual		561			390			399			480			489
Loan 90 days or more past due still on accrual		—			—			—			—			—
Total non-performing loans		2,188			1,920			2,395			2,156			2,527
Real estate acquired through foreclosures		—			—			1,765			1,765			1,625
Other repossessed assets		—			—			—			—			—
Total non-performing assets	$	2,188		$	1,920		$	4,160		$	3,921		$	4,152
Non-performing loans to total loans		0.23	%		0.20	%		0.24	%		0.22	%		0.26	%
Non-performing assets to total assets		0.16			0.14			0.31			0.30			0.32
Allowance for loan losses to non-performing loans		592.92			658.18			532.57			577.13			454.33
Allowance for loan losses to total loans		1.34	%		1.33	%		1.30	%		1.29	%		1.18	%
Loan Charge-off Data
Loans charged off	$	(25	)	$	(178	)	$	(77	)	$	(124	)	$	(150	)
Recoveries		61			60			39			186			53
Net (charge-offs) recoveries	$	36		$	(118	)	$	(38	)	$	62		$	(97	)
Loans by Risk Category
Pass	$	945,396		$	913,753		$	942,492		$	926,025		$	923,895
Watch		3,407			15,888			17,929			18,879			27,782
Special Mention		—			—			—			—			364
Substandard		19,285			17,784			18,444			17,177			22,427
Doubtful		—			—			—			—			—
Total	$	968,088		$	947,425		$	978,865		$	962,081		$	974,468
Loans by Past Due Status
Past due loans:
30 – 59 days	$	630		$	181		$	677		$	1,537		$	482
60 – 89 days		142			252			254			372			265
90 days or more		—			—			—			—			—
Nonaccrual loans		1,627			1,530			1,996			1,676			2,038
Total past due and nonaccrual loans	$	2,399		$	1,963		$	2,927		$	3,585		$	2,785

LIMESTONE BANCORP, INC. Unaudited Financial Information (in thousands, except share and per share data)
	As of
		9/30/21			6/30/21			3/31/21			12/31/20			9/30/20
Risk-based Capital Ratios - Company
Tier I leverage ratio		9.39	%		8.70	%		8.59	%		8.24	%		8.17	%
Common equity Tier I risk-based capital ratio		9.37			9.48			8.96			8.72			8.54
Tier I risk-based capital ratio		10.86			10.63			10.00			9.67			9.77
Total risk-based capital ratio		14.13			14.09			13.42			13.14			13.22
Risk-based Capital Ratios – Limestone Bank
Tier I leverage ratio		10.96	%		10.55	%		10.44	%		10.21	%		9.90	%
Common equity Tier I risk-based capital ratio		12.68			12.95			12.21			12.05			11.88
Tier I risk-based capital ratio		12.68			12.95			12.21			12.05			11.88
Total risk-based capital ratio		13.80			14.11			13.37			13.20			12.97
FTE employees, end of period		232			231			225			219			224

Non-GAAP Financial Measures Reconciliation

Tangible book value per common share is a non-GAAP financial measure derived from GAAP based amounts. Tangible book value per common share is calculated by excluding the balance of intangible assets from common stockholders’ equity. Tangible book value per common share is calculated by dividing tangible common equity by common shares outstanding, as compared to book value per common share, which is calculated by dividing common stockholders’ equity by common shares outstanding. Management believes this is consistent with bank regulatory agency treatment, which excludes intangible assets from the calculation of risk-based capital.

The efficiency ratio is a non-GAAP measure of expense control relative to revenue from net interest income and fee income. The efficiency ratio is calculated by dividing total non-interest expenses as determined under GAAP by net interest income and total non-interest income, but excluding from the calculation net gains on the sale of securities and expenses disclosed from time to time as non-recurring in nature. Management believes this provides a reasonable measure of primary banking expenses relative to primary banking revenue.

		As of
			9/30/21			6/30/21			3/31/21			12/31/20				9/30/20
Tangible Book Value Per Share		(in thousands, except share and per share data)
Common stockholders’ equity		$	128,664		$	123,959		$	119,520		$	116,024		$		112,286
Less: Goodwill			6,252			6,252			6,252			6,252				6,252
Less: Intangible assets			2,053			2,117			2,181			2,244				2,308
Tangible common equity			120,359			115,590			111,087			107,528				103,726
Shares outstanding			7,602,686			7,602,686			7,594,499			7,498,865				7,499,183
Tangible book value per common share		$	15.83		$	15.20		$	14.63		$	14.34		$		13.83
Book value per common share			16.92			16.30			15.74			15.47				14.97
		Three Months Ended
			9/30/21			6/30/21			3/31/21			12/31/20					9/30/20
Efficiency Ratio		(in thousands)
Net interest income		$	11,621		$	10,914		$	10,680		$	10,786			$		9,943
Non-interest income			2,436			2,135			1,884			1,777					1,742
Less: Net gain (loss) on securities			465			(5	)		—			—					—
Revenue used for efficiency ratio			13,592			13,054			12,564			12,563					11,685
Non-interest expense			8,050			7,954			7,984			7,866					8,079
Efficiency ratio			59.23	%		60.93	%		63.55	%		62.61	%				69.14	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211020006014/en/

John T. Taylor

Chief Executive Officer

(502) 499-4800

Source: Limestone Bancorp, Inc.

FAQ

What was Limestone Bancorp's net income for Q3 2021?

Limestone Bancorp reported a net income of $4.3 million for Q3 2021.

How much is the share repurchase program announced by Limestone Bancorp?

The share repurchase program authorized by Limestone Bancorp is for $3.0 million.

What is the net interest margin for Limestone Bancorp in Q3 2021?

The net interest margin for Q3 2021 was 3.61%.

How did Limestone Bancorp's loan portfolio change in Q3 2021?

Limestone Bancorp's loan portfolio decreased to $968.1 million in Q3 2021 from $974.5 million in Q3 2020.

What were the PPP loan figures for Limestone Bancorp in Q3 2021?

PPP loans totaled $5.7 million at September 30, 2021, down from $42.3 million in Q3 2020.