Financial Results - Quarterly Comparison June 2019

 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