Declares Quarterly Dividend of $0.05 per
Common Share
Limestone Bancorp, Inc. (NASDAQ: LMST) (the “Company”), parent
company of Limestone Bank, Inc. (the “Bank”), today reported
unaudited results for the fourth quarter of 2022. Net income
available to common shareholders for the fourth quarter of 2022 was
$4.9 million, or $0.64 per basic and diluted common share, compared
with $3.4 million, or $0.45 per basic and diluted common share, for
the fourth quarter of 2021. Net income for the year ended December
31, 2022, was $18.3 million, or $2.40 per basic and diluted common
share, compared with net income of $14.9 million, or $1.96 per
basic and diluted common share, for the year ended December 31,
2021. The fourth quarter and year ended 2022 included $691,000 of
merger expenses related to the Company’s pending merger transaction
with Peoples Bancorp, Inc. and its subsidiary, Peoples Bank, or
$0.07 per basic and diluted common share.
John T. Taylor, Chief Executive Officer, noted, “Over the past
year, the Limestone team delivered solid results for shareholders
and continued to execute for our customers while managing risk in
an inflationary environment. The team achieved 11% loan growth, 17%
pretax, pre-provision income1 growth, and a 14% return on average
equity. Asset quality remains strong and net interest margin
expanded 14 basis points year over year, which is directionally
consistent with the Federal Reserve’s tightening actions and our
approach to interest rate risk management. Additionally, our team
continues to work diligently with the Peoples Bank team to plan and
prepare for the completion of our pending merger after required
regulatory and shareholder approvals are received.”
Also today, the Board of Directors declared a quarterly cash
dividend of $0.05 per common share. The dividend will be paid on
February 21, 2023, to shareholders of record as of February 6,
2023.
Net Interest Income and Average Earning Assets – Net
interest income increased to $13.4 million for the fourth quarter
of 2022, compared to $12.9 million for the third quarter of 2022,
and $11.0 million for the fourth quarter of 2021. Net interest
margin increased to 3.82% for the fourth quarter of 2022, compared
with 3.73% for the third quarter of 2022, and 3.32% for the fourth
quarter of 2021.
The yield on earning assets increased to 4.89% in the fourth
quarter of 2022, compared to 4.37% in the third quarter of 2022,
and 3.71% in the fourth quarter of 2021. Quarter over quarter,
average loans increased $13.6 million to $1.11 billion. Compared to
the prior year fourth quarter, average loans increased $154.6
million, average investment securities decreased $11.1 million, and
average lower yielding fed funds sold decreased $70.4 million.
The Federal Reserve increased the fed funds target by 425 basis
points over its last seven meetings of 2022. Conversely, the Bank’s
fed funds sold, floating rate investment securities, loans with
variable rate pricing features, and new loan originations
benefitted from the upward movement in short-term rates during
2022. The cost of interest-bearing liabilities were also impacted,
although to a lesser extent.
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 $245,000, $279,000, and
$967,000 for the quarters ended December 31, 2022, September 30,
2022, and December 31, 2021, respectively. This represents seven
basis points, eight basis points, and 29 basis points of yield on
earning assets and net interest margin for the quarters ended
December 31, 2022, September 30, 2022, and December 31, 2021,
respectively. Loan fee income for the fourth and third quarters of
2022 did not include any fees earned on Paycheck Protection Program
(PPP) loans, compared to $261,000 in the fourth quarter of 2021,
which represented eight basis points of earning asset yield and net
interest margin for the fourth quarter of 2021.
The following table reconciles the as reported yield on earning
assets to the yield on earning assets excluding PPP fees, a
non-GAAP financial measure:
Three Months Ended
12/31/22
9/30/22
6/30/22
3/31/22
12/31/21
(in thousands)
Yield on Earning Assets, as reported
4.89
%
4.37
%
3.95
%
3.82
%
3.71
%
Less Impact of PPP Fees
—
—
—
0.02
0.08
Yield on Earning Asset excluding PPP
Fees
4.89
%
4.37
%
3.95
%
3.80
%
3.63
%
The cost of interest-bearing liabilities was 1.44% for the
fourth quarter of 2022, compared to 0.85% in the third quarter of
2022, and 0.53% in the fourth quarter of 2021. The movement in
short-term rates impacted the cost of interest-bearing
liabilities.
Net interest income increased to $49.1 million for the year
ended December 31, 2022, compared with $44.2 million for the year
ended December 31, 2021. Net interest margin increased to 3.62% in
the year ended December 31, 2022, compared with 3.48% for the year
ended December 31, 2021.
The yield on earning assets increased to 4.27% for the year
ended December 31, 2022, compared to 3.92% for the year ended
December 31, 2021. During the year ended December 31, 2022, average
loans increased $113.8 million to $1.07 billion and average
investment securities increased $20.2 million, while average lower
yielding fed funds sold decreased $51.7 million compared to the
year ended December 31, 2021. Average PPP loans were $294,000 and
$15.5 million for the year ended December 31, 2022 and 2021,
respectively. The amount of loan fee income included in total
interest income was $1.0 million and $4.3 million for the year
ended December 31, 2022 and 2021, respectively. This represented
eight basis points and 33 basis points of yield on earning assets
and net interest margin for the year ended December 31, 2022 and
2021, respectively. Loan fee income included PPP fees of $45,000
and $2.8 million for the year ended December 31, 2022 and 2021,
respectively, which represented approximately one basis point and
21 basis points of earning asset yield and net interest margin,
respectively.
The cost of interest-bearing liabilities was 0.86% for 2022,
compared to 0.59% for 2021. The cost of interest-bearing
liabilities was negatively impacted by the increases in short-term
interest rates.
Time deposits increased $16.4 million during the fourth quarter
of 2022. Approximately $57.1 million of time deposits with an
average rate of 0.79% matured and were redeemed or repriced during
the fourth quarter of 2022. During the fourth quarter of 2022,
newly originated or renewed time deposits had an average rate of
3.05% and an average term of approximately 9 months. As of December
31, 2022, time deposits comprised $290.2 million of the Company’s
liabilities including $69.3 million with a current average rate of
0.98%, which reprice or mature in the first quarter of 2023. The
following table denotes contractual time deposit maturities and
average rates as of December 31, 2022:
Maturity
Quarter
As of December 31, 2022 (in
thousands)
Weighted Average Rate
Q1-2023
69,314
0.98
Q2-2023
108,956
2.89
Q3-2023
38,056
1.64
Q4-2023
16,690
1.20
Thereafter
57,145
0.72
Total time deposits
$
290,161
1.74
%
Provision and Allowance for Loan Losses – The allowance
for loan losses to total loans was 1.17% at December 31, 2022,
compared to 1.16% at September 30, 2022, and 1.15% at December 31,
2021.
Net loan recoveries were $1.4 million for 2022, compared to net
loan charge-offs of $2.1 million for 2021. During the third quarter
of 2022, the Bank received a payoff of $2.0 million on a nonaccrual
commercial real estate loan resulting in a recovery of $1.5
million. A provision for loan losses of $130,000 and $80,000, or
$0.01 and $0.01 per common share after taxes, was recorded in the
fourth quarter and the year ended December 31, 2022, respectively,
compared to a provision for loan losses of $500,000 and $1.2
million, or $0.05 and $0.11 per common share after taxes, in the
fourth quarter and the year ended December 31, 2021. The loan loss
provision for the fourth quarter of 2022 was primarily attributable
to net charge-offs for the period. The loan loss provision for the
year ended December 31, 2022, was primarily attributable to growth
trends within the portfolio, offset by a significant recovery
recognized during the third quarter and its impact on the
historical loss percentages. The 2021 loan loss provisions were
attributable to growth trends within the portfolio and net loan
charge-offs impacting historical loss percentages during the
period.
Non-interest Income and Expense – Non-interest income for
the fourth quarter of 2022 increased $171,000 to $2.2 million,
compared with $2.0 million for the fourth quarter of 2021. The
increase was primarily related to an increase in service charges on
deposit accounts of $98,000 and an increase in bank card
interchange fees of $88,000, both of which were due to an increase
in transaction volumes as compared to the prior period.
Non-interest expense increased $879,000, or 11.0%, to $8.9
million for the fourth quarter of 2022, compared with $8.0 million
for the fourth quarter of 2021. The increase was primarily due to
merger expenses of $691,000, or $0.07 per share, related to the
pending merger with Peoples Bancorp, Inc. as announced on October
24, 2022. Salaries and benefits expense also increased $246,000
from the fourth quarter of 2021 as a result of the inflationary
impact on salary administration, increased health care utilization
costs, and increased performance-based incentive compensation.
Non-interest income for the year ended December 31, 2022,
increased $438,000 to $8.9 million, compared with $8.4 million for
the year ended December 31, 2021. The increase was primarily due to
an increase in services charges on deposit accounts of $519,000 and
an increase in bank card interchange fees of $162,000, both of
which were due to an increase in transaction volumes. Bank owned
life insurance income increased $180,000 for the year ended
December 31, 2022, due to additional policies being purchased in
March 2022. Non-interest income for the twelve months ended
December 31, 2022, also included a $163,000 gain on sale of
premises held for sale from the first quarter of 2022, while the
year ended December 31, 2021, included a $191,000 gain on sale of
OREO from the second quarter of 2021, as well as a $465,000 gain on
the call of a corporate bond from the third quarter of 2021.
Non-interest expense increased $1.8 million, or 5.6%, to $33.8
million for the year ended December 31, 2022, compared with $32.0
million for the year ended December 31, 2021. The increase was
primarily due to an increase of $889,000 in salaries and benefits
as discussed above, merger expenses of $691,000 as discussed above,
and a $396,000 increase in other non-interest expense primarily
related to losses associated with demand deposit charge-offs and
fraudulent check and debit card activity during the period. These
increases from the prior year were offset by a decrease in
communications expense of $262,000 for 2022 as a result of changes
in information technology infrastructure during the period.
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 Company’s pending merger transaction with
Peoples Bancorp, Inc., merger-related expenses and requirements
during the pendency of the merger transaction and conditions that
must be satisfied for the merger transaction to be completed,
including the receipt of required regulatory and shareholder
approvals; the impact and duration of the COVID-19 pandemic;
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 inflation and efforts to control it; 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, 2021 and Form 10-Q for the nine months ended September
30, 2022.
Additional Information
Unaudited supplemental financial information for the fourth
quarter ending December 31, 2022, follows.
LIMESTONE BANCORP, INC.
Unaudited Financial Information
(in thousands, except share and per share
data)
Three
Three
Twelve
Twelve
Months
Months
Months
Months
Ended
Ended
Ended
Ended
12/31/22
12/31/21
12/31/22
12/31/21
Income Statement Data
Interest income
$
17,140
$
12,314
$
57,810
$
49,915
Interest expense
3,768
1,307
8,732
5,693
Net interest income
13,372
11,007
49,078
44,222
Provision for loan losses
130
500
80
1,150
Net interest income after provision
13,242
10,507
48,998
43,072
Service charges on deposit accounts
703
605
2,775
2,256
Bank card interchange fees
1,127
1,039
4,278
4,116
Bank owned life insurance income
107
106
706
526
Gain on sale of OREO
—
—
—
191
Gain (loss) on sales and calls of
securities, net
—
—
(3
)
460
Gain on sale of premises held for sale
—
—
163
—
Other
218
234
958
890
Non-interest income
2,155
1,984
8,877
8,439
Salaries & employee benefits
4,847
4,601
19,021
18,132
Occupancy and equipment
983
978
4,201
4,041
Deposit account related expense
557
566
2,249
2,158
Data processing expense
400
379
1,591
1,512
Professional fees
155
251
818
952
Marketing expense
141
166
605
727
FDIC insurance
90
90
360
405
Deposit tax
99
105
396
375
Communications expense
126
161
419
681
Insurance expense
102
91
420
415
Postage and delivery
153
145
622
605
Merger expenses
691
—
691
—
Other
518
450
2,364
1,968
Non-interest expense
8,862
7,983
33,757
31,971
Income before income taxes
6,535
4,508
24,118
19,540
Income tax expense
1,621
1,063
5,776
4,631
Net income
$
4,914
$
3,445
$
18,342
$
14,909
Weighted average shares – Basic
7,638,855
7,597,256
7,631,243
7,593,176
Weighted average shares – Diluted
7,638,855
7,597,256
7,631,243
7,593,176
Basic earnings per common share
$
0.64
$
0.45
$
2.40
$
1.96
Diluted earnings per common share
$
0.64
$
0.45
$
2.40
$
1.96
Cash dividends declared per common
share
$
0.05
$
0.00
$
0.20
$
0.00
Performance Ratios
Return on average assets
1.33
%
0.97
%
1.28
%
1.09
%
Return on average equity
15.05
10.51
14.17
12.03
Yield on average earning assets (tax
equivalent)
4.89
3.71
4.27
3.92
Cost of interest-bearing liabilities
1.44
0.53
0.86
0.59
Net interest margin (tax equivalent)
3.82
3.32
3.62
3.48
Efficiency ratio2
52.62
61.45
57.05
61.25
Non-interest expense to average assets
2.41
2.25
2.35
2.34
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
12/31/22
9/30/22
6/30/22
3/31/22
12/31/21
Income Statement Data
Interest income
$
17,140
$
15,121
$
13,122
$
12,427
$
12,314
Interest expense
3,768
2,209
1,442
1,313
1,307
Net interest income
13,372
12,912
11,680
11,114
11,007
Provision (negative provision) for loan
losses
130
(1,250
)
450
750
500
Net interest income after provision
13,242
14,162
11,230
10,364
10,507
Service charges on deposit accounts
703
748
690
634
605
Bank card interchange fees
1,127
1,061
1,087
1,003
1,039
Bank owned life insurance income
107
148
249
202
106
Gain (loss) on sales and calls of
securities, net
—
—
(3
)
—
—
Gain on sale of premises held for sale
—
—
—
163
—
Other
218
271
233
236
234
Non-interest income
2,155
2,228
2,256
2,238
1,984
Salaries & employee benefits
4,847
4,959
4,651
4,564
4,601
Occupancy and equipment
983
1,134
1,055
1,029
978
Deposit account related expense
557
571
574
547
566
Data processing expense
400
402
403
386
379
Professional fees
155
206
236
221
251
Marketing expense
141
159
172
133
166
FDIC insurance
90
90
90
90
90
Deposit tax
99
99
99
99
105
Communications expense
126
108
121
64
161
Insurance expense
102
104
109
105
91
Postage and delivery
153
156
150
163
145
Merger expenses
691
—
—
—
—
Other
518
709
567
570
450
Non-interest expense
8,862
8,697
8,227
7,971
7,983
Income before income taxes
6,535
7,693
5,259
4,631
4,508
Income tax expense
1,621
1,880
1,223
1,052
1,063
Net income
$
4,914
$
5,813
$
4,036
$
3,579
$
3,445
Weighted average shares – Basic
7,638,855
7,639,492
7,631,883
7,614,382
7,597,256
Weighted average shares – Diluted
7,638,855
7,639,492
7,631,883
7,614,382
7,597,256
Basic earnings per common share
$
0.64
$
0.76
$
0.53
$
0.47
$
0.45
Diluted earnings per common share
$
0.64
$
0.76
$
0.53
$
0.47
$
0.45
Cash dividends declared per common
share
$
0.05
$
0.05
$
0.05
$
0.05
$
0.00
Performance Ratios
Return on average assets
1.33
%
1.59
%
1.14
%
1.03
%
0.97
%
Return on average equity
15.05
17.83
12.66
11.07
10.51
Yield on average earning assets (tax
equivalent)
4.89
4.37
3.95
3.82
3.71
Cost of interest-bearing liabilities
1.44
0.85
0.58
0.53
0.53
Net interest margin (tax equivalent)
3.82
3.73
3.51
3.42
3.32
Efficiency ratio2
52.62
57.44
59.02
59.70
61.45
Non-interest expense to average assets
2.41
2.38
2.33
2.30
2.25
LIMESTONE BANCORP, INC.
Unaudited Financial Information
(in thousands, except share and per share
data)
As of
12/31/22
9/30/22
6/30/22
3/31/22
12/31/21
Assets
Loans
$
1,111,854
$
1,127,945
$
1,073,815
$
1,047,285
$
1,001,840
Allowance for loan losses
(13,030
)
(13,031
)
(12,550
)
(12,195
)
(11,531
)
Net loans
1,098,824
1,114,914
1,061,265
1,035,090
990,309
Securities held to maturity3
43,282
43,350
44,205
45,639
46,460
Securities available for sale3
180,173
181,292
193,022
204,071
214,213
Federal funds sold & interest-bearing
deposits
37,476
50,940
18,244
22,040
67,110
Cash and due from financial
institutions
7,159
6,430
7,742
10,009
10,493
Premises and equipment
22,103
22,503
22,747
23,043
21,575
Premises held for sale
—
—
—
—
310
Bank owned life insurance
31,132
31,032
30,888
30,643
23,946
FHLB Stock
5,176
5,176
5,116
5,116
5,116
Deferred taxes, net
21,283
23,002
23,343
22,648
21,583
Goodwill
6,252
6,252
6,252
6,252
6,252
Intangible assets
1,733
1,797
1,861
1,925
1,989
Accrued interest receivable and other
assets
7,862
7,007
6,383
6,230
6,336
Total Assets
$
1,462,455
$
1,493,695
$
1,421,068
$
1,412,706
$
1,415,692
Liabilities and Equity
Certificates of deposit
$
290,161
$
273,780
$
256,141
$
260,064
$
266,011
Interest checking
314,082
286,867
269,240
274,054
287,208
Money market
179,035
215,450
209,183
216,845
217,943
Savings
148,552
154,545
163,573
166,135
163,423
Total interest-bearing deposits
931,830
930,642
898,137
917,098
934,585
Demand deposits
268,954
287,938
269,425
281,533
274,083
Total deposits
1,200,784
1,218,580
1,167,562
1,198,631
1,208,668
FHLB advances
70,000
90,000
70,000
30,000
20,000
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
11,813
10,744
10,888
9,855
10,065
Total liabilities
1,328,597
1,365,324
1,294,450
1,284,486
1,284,733
Total stockholders’ equity
133,858
128,371
126,618
128,220
130,959
Total Liabilities and Stockholders’
Equity
$
1,462,455
$
1,493,695
$
1,421,068
$
1,412,706
$
1,415,692
Ending shares outstanding
7,638,633
7,639,033
7,640,680
7,622,157
7,594,749
Book value per common share
$
17.52
$
16.80
$
16.57
$
16.82
$
17.24
Tangible book value per common
share4
16.48
15.75
15.51
15.75
16.16
LIMESTONE BANCORP, INC.
Unaudited Financial Information
(in thousands, except share and per share
data)
As of
12/31/22
9/30/22
6/30/22
3/31/22
12/31/21
Average Balance Sheet Data
Assets
$
1,461,199
$
1,451,647
$
1,417,087
$
1,407,030
$
1,405,219
Loans
1,110,078
1,096,478
1,053,057
1,028,546
955,516
Earning assets
1,395,860
1,378,771
1,339,555
1,326,234
1,322,821
Deposits
1,204,804
1,203,098
1,184,426
1,199,174
1,199,334
Long-term debt and advances
114,586
108,229
93,968
67,667
66,000
Interest bearing liabilities
1,037,991
1,029,131
1,000,367
996,710
982,132
Stockholders’ equity
129,560
129,346
127,827
131,097
129,998
Asset Quality Data
Nonaccrual loans
$
856
$
1,054
$
3,007
$
3,447
$
3,124
Troubled debt restructurings on
accrual
133
146
150
333
340
Loan 90 days or more past due still on
accrual
—
—
—
—
—
Total non-performing loans
989
1,200
3,157
3,780
3,464
Real estate acquired through
foreclosures
—
—
—
—
—
Other repossessed assets
—
—
—
—
—
Total non-performing assets
$
989
$
1,200
$
3,157
$
3,780
$
3,464
Non-performing loans to total loans
0.09
%
0.11
%
0.29
%
0.36
%
0.35
%
Non-performing assets to total assets
0.07
0.08
0.22
0.27
0.24
Allowance for loan losses to
non-performing loans
1,317.49
1,085.92
397.53
322.62
332.88
Allowance for loan losses to total
loans
1.17
%
1.16
%
1.17
%
1.16
%
1.15
%
Loan Charge-off Data
Loans charged off
$
(158
)
$
(86
)
$
(367
)
$
(227
)
$
(2,246
)
Recoveries
27
1,817
272
141
304
Net (charge-offs) recoveries
$
(131
)
$
1,731
$
(95
)
$
(86
)
$
(1,942
)
Loans by Risk Category5
Pass
$
1,089,330
$
1,116,009
$
1,052,624
$
1,023,039
$
977,962
Watch
15,189
3,177
6,426
8,567
7,856
Special Mention
—
—
—
—
—
Substandard
7,335
8,759
14,765
15,679
16,022
Doubtful
—
—
—
—
—
Total
$
1,111,854
$
1,127,945
$
1,073,815
$
1,047,285
$
1,001,840
Loans by Past Due Status
Past due loans:
30 – 59 days
$
1,919
$
300
$
600
$
1,108
$
556
60 – 89 days
268
57
209
89
210
90 days or more
—
—
—
—
—
Nonaccrual loans
856
1,054
3,007
3,447
3,124
Total past due and nonaccrual
loans
$
3,043
$
1,411
$
3,816
$
4,644
$
3,890
LIMESTONE BANCORP, INC.
Unaudited Financial Information
(in thousands, except share and per share
data)
As of
12/31/22
9/30/22
6/30/22
3/31/22
12/31/21
Risk-based Capital Ratios -
Company
Tier I leverage ratio
10.44
%
10.04
%
9.68
%
9.38
%
9.14
%
Common equity Tier I risk-based capital
ratio
10.14
9.46
9.16
8.93
9.00
Tier I risk-based capital ratio
11.71
10.89
10.49
10.19
10.38
Total risk-based capital ratio
14.63
13.75
13.39
13.12
13.41
Risk-based Capital Ratios – Limestone
Bank
Tier I leverage ratio
11.59
%
11.56
%
11.39
%
11.20
%
10.84
%
Common equity Tier I risk-based capital
ratio
13.01
12.55
12.38
12.21
12.35
Tier I risk-based capital ratio
13.01
12.55
12.38
12.21
12.35
Total risk-based capital ratio
14.01
13.53
13.35
13.17
13.31
FTE employees, end of period
222
226
225
222
227
Footnotes:
(1) Pretax, pre-provision income (PTPI) is a non-GAAP financial
measure calculated by adjusting pretax income or income before
income taxes to add back provision for loan losses. Management
believes that PTPI is a useful financial measure as it enables the
assessment of the Company’s ability to generate earnings to cover
credit losses through a credit cycle and provides an additional
basis for comparing results of operations between periods by
isolating the impact of provision for loan losses, which can vary
significantly between periods.
Three Months Ended
12/31/22
9/30/22
6/30/22
3/31/22
12/31/21
Pretax, Pre-Provision Income
(in thousands)
Income before income taxes
$
6,535
$
7,693
$
5,259
$
4,631
$
4,508
Provision for credit losses
130
(1,250
)
450
750
500
Pretax, pre-provision income
6,665
6,443
5,709
5,381
5,008
Twelve Months Ended
12/31/22
12/31/21
(in thousands)
Pretax, Pre-Provision Income
Income before income taxes
$
24,118
$
19,540
Provision for credit losses
80
1,150
Pretax, pre-provision income
24,198
20,690
(2) 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.
Three Months Ended
12/31/22
9/30/22
6/30/22
3/31/22
12/31/21
Efficiency Ratio
(in thousands)
Net interest income
$
13,372
$
12,912
$
11,680
$
11,114
$
11,007
Non-interest income
2,155
2,228
2,256
2,238
1,984
Less: Net gain (loss) on securities
—
—
(3
)
—
—
Revenue used for efficiency ratio
15,527
15,140
13,939
13,352
12,991
Non-interest expense
8,862
8,697
8,227
7,971
7,983
Less: Merger expenses
691
—
—
—
—
Expenses used for efficiency ratio
8,171
8,697
8,227
7,971
7,983
Efficiency ratio
52.62
%
57.44
%
59.02
%
59.70
%
61.45
%
Twelve Months Ended
12/31/22
12/31/21
(in thousands)
Efficiency Ratio
Net interest income
$
49,078
$
44,222
Non-interest income
8,877
8,439
Less: Net gain (loss) on securities
(3
)
460
Revenue used for efficiency ratio
57,958
52,201
Non-interest expense
33,757
31,971
Less: Merger expenses
691
—
Expenses used for efficiency ratio
33,066
31,971
Efficiency ratio
57.05
%
61.25
%
(3) Investment Securities – The following table sets forth the
amortized cost and fair value of our securities portfolio at the
dates indicated.
December 31, 2022
September 30, 2022
Amortized Cost
Gross Unrealized
Gains
Gross Unrealized
Losses
Fair Value
Amortized Cost
Gross Unrealized
Gains
Gross Unrealized
Losses
Fair Value
(dollars in thousands)
Securities available for sale
U.S. Government and
federal agencies
$
24,541
$
—
$
(2,784
)
$
21,757
$
24,810
$
—
$
(2,864
)
$
21,946
Agency mortgage-backed residential
80,283
9
(10,387
)
69,905
82,193
16
(11,777
)
70,432
Collateralized loan obligations
48,202
—
(2,161
)
46,041
48,209
—
(2,221
)
45,988
Corporate bonds
45,512
—
(3,042
)
42,470
45,493
9
(2,576
)
42,926
Total available for sale
$
198,538
$
9
$
(18,374
)
$
180,173
$
200,705
$
25
$
(19,438
)
$
181,292
Amortized Cost
Gross Unrecognized
Gains
Gross Unrecognized
Losses
Fair Value
Amortized Cost
Gross Unrecognized
Gains
Gross Unrecognized
Losses
Fair Value
(dollars in thousands)
Securities held to maturity
State and municipal
$
43,282
$
—
$
(8,386
)
$
34,896
$
43,350
$
—
$
(9,582
)
$
33,768
Total held to maturity
$
43,282
$
—
$
(8,386
)
$
34,896
$
43,350
$
—
$
(9,582
)
$
33,768
(4) 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 goodwill and
other 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 goodwill and other intangible assets from the
calculation of risk-based capital.
As of
12/31/22
9/30/22
6/30/22
3/31/22
12/31/21
Tangible Book Value Per Share
(in thousands, except share and
per share data)
Common stockholders’ equity
$
133,858
$
128,371
$
126,618
$
128,220
$
130,959
Less: Goodwill
6,252
6,252
6,252
6,252
6,252
Less: Intangible assets
1,733
1,797
1,861
1,925
1,989
Tangible common equity
125,873
120,322
118,505
120,043
122,718
Shares outstanding
7,638,633
7,639,033
7,640,680
7,622,157
7,594,749
Tangible book value per common share
$
16.48
$
15.75
$
15.51
$
15.75
$
16.16
Book value per common share
17.52
16.80
16.57
16.82
17.24
(5) Loans by Risk Category reflect management’s risk ratings
based on categories aligned with the bank regulatory
definitions.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230118005143/en/
John T. Taylor Chief Executive Officer (502) 499-4800
Limestone Bancorp (NASDAQ:LMST)
Historical Stock Chart
From Dec 2024 to Jan 2025
Limestone Bancorp (NASDAQ:LMST)
Historical Stock Chart
From Jan 2024 to Jan 2025
