Financial Results - Quarterly Comparison March 2019

ACBB FINANCIAL RESULTS for the Three Months Ending March 31, 2019 and 2018

BALANCE SHEET (in thousands) Unaudited Unaudited
ASSETS 3/31/19 3/31/19
Cash and Due from Banks $221,620 $302,417
Investment Securities

126,781

130,447

Federal Funds Sold

38,829

49,380

Loans, Net

335,751

312,673

Other Assets

48,751

41,901

Total Assets $771,768 $836,818
     
LIABILITIES AND CAPITAL    
Deposits $412,878 $551,739

Federal Funds Purchased

150,804

97,970

Other Borrowed Funds

94,745

81,457

Other Liabilities 9,363 7,746
Total Liabilities $667,699 $738,912
     

Equity Capital

104,069 97,906
Total Liabilities and Capital $771,768 $836,818
     
  YTD  YTD

INCOME STATEMENT (in thousands)

3/31/19  3/31/18

Interest Income

$6,103 $5,457
Interest Expense

2,108

1,266

Net Interest Income 3,995 4,191
     
Provision for Loan Losses 0  0
Realized Gains (Losses) on Securities 0  0
Non-interest Income 5,088 5,168
Operating Expenses 7,095 6,678
Income Tax Expense 422 502
Net Income $1,566 $2,179

YTD net income of $1,566,000 was $613,000 below that of March 2018.  Prior year results included recognition of income from a BOLI death benefit ($204 K), a gain from an OREO recovery ($157 K), and a purchase accounting gain ($171 K) resulting from the January 2018 acquisition of Bankers Bank Northeast.

 

 Net interest income has decreased $196,000 in 2019, despite a seven basis point increase in the net interest margin, year over year.  Average earning assets have declined $56.4 million in 2019 while average interest bearing liabilities have grown $56.8 million from the first quarter of 2018.  Analysis service fee income increased $101,000, partially mitigating the decline in net interest income.

 

Strong Capital Levels:

Total Risk-Based Capital Ratio = 23.03%
Tier 1 Risk-Based Capital Ratio = 21.82%
Leverage Capital Ratio = 13.83%

Funding Diversification and Balance Sheet Composition: 

Non-interest bearing demand deposits decreased $140 million compared to March 2018.  Fed Funds Purchased increased $52.8 million, partially offsetting the decline in DDA's.  Other borrowings increased $13.3 million over March 2018 as long term loan growth was funded with additional FHLB advances. Loan growth was strong: a net increase of $23.1 million from March 2018.

Credit Quality:

Past due loans that are still accruing were 0.06% of gross loans as of March 31, 2019. Robust loan loss allowance, as illustrated below:

  • ALLL to Total Non-Current Loans of 715.59%
  • ALLL to Total Loans of 2.42%
  • Texas ratio of only 1.96%

Other Ratios

Return on Average Assets - YTD 0.85%
Return on Average Equity - YTD 6.14%
ALLL to Non-performing Loans* 535.65%

Non-performing Assets to Total Assets

0.23%

* Includes performing TDRs