ACBB FINANCIAL RESULTS for the Six Months Ending June 30, 2019 and 2018

BALANCE SHEET (in thousands)	Unaudited	Unaudited
ASSETS	6/30/2019	6/30/2018
Cash and Due from Banks	$255,308	$202,984
Investment Securities	127,247	123,552
Federal Funds Sold	32,131	31,338
Loans, Net	352,169	302,091
Other Assets	46,638	42,120
Total Assets	$813,493	$702,085
LIABILITIES AND CAPITAL
Deposits	$406,246	$417,876
Federal Funds Purchased	193,942	87,426
Other Borrowed Funds	97,937	89,608
Other Liabilities	9,546	7,990
Total Liabilities	707,671	602,900
Equity Capital	105,822	99,185
Total Liabilities and Capital	$813,493	$702,085
	YTD	YTD
INCOME STATEMENT (in thousands)	6/30/2019	6/30/2018
Interest Income	$12,820	$10,789
Interest Expense	4,603	2,681
Net Interest Income	8,217	8,108
Provision for Loan Losses	0	(350)
Realized Gains (Losses) on Securities	0	0
Non-interest Income	10,254	9,989
Operating Expenses	14,701	14,086
Income Tax Expense	802	855
Net Income	$2,968	$3,506

 

YTD net income of $2,968,000 was $538,000 below that of June 2018. Prior year results included a $350 credit to the provision for loan losses, recognition of income from a BOLI death benefit ($204 K),  a gain from an OREO recovery, and a purchase accounting gain ($171 K) resulting from the January 2018 acquisition of Bankers Bank Northeast. Net interest income was $109,000 higher than June 2018 YTD  but included $440,000 in interest recoveries. The decrease in net income year over year was mainly due to a $615,000 increase in operating expenses, including the full year effect of 2018 staff additions, new positions added in 2019 and an increase in professional services expenses.

Strong Capital Levels:
Total Risk-Based Capital Ratio = 22.50%
Tier 1 Risk-Based Capital Ratio = 21.29%
Leverage Capital Ratio = 13.33%

Funding Diversification and Balance Sheet Composition:
Loan growth was strong: a net increase of $50.1 million from June 2018. Non-interest bearing deposits declined by $23 million year over year, replaced with interest bearing CDs and borrowings, including FHLB advances.  Fed Funds Purchased were $106.5 million higher than June 30, 2018.

Credit Quality:
There were no delinquent loans still accruing on June 30th.
Robust loan loss allowance, as illustrated below:
● ALL to Total Non-Current Loans of 2,190.5%
● ALL to Total Loans of 2.24%
● Texas ratio of only 1.13%

Other Ratios:

Return on Average Assets	0.78%
Return on Average Equity	5.73%
ALL to Non-performing Loans*	625.14%
Non-performing Assets to Total Assets	0.16%

*Includes performing TDRs