Financial Results - Quarterly Comparison September 2019

 ACBB FINANCIAL RESULTS for the Nine Months Ending September 30, 2019 and 2018

BALANCE SHEET (in thousands) Unaudited Unaudited
ASSETS 9/30/2019 9/30/2018
Cash and Due from Banks $220,990 $188,036
Investment Securities

133,243

124,850

Federal Funds Sold

55,533

66,857

Loans, Net

364,472

307,741

Other Assets

46,648

42,047

Total Assets $820,886 $729,531
     
LIABILITIES AND CAPITAL    
Deposits $428,711 $436,979

Federal Funds Purchased

176,322

90,734

Other Borrowed Funds

97,204

93,062

Other Liabilities 12,688 8,283
Total Liabilities 714,925 629,058
     

Equity Capital

105,961 100,473
Total Liabilities and Capital $820,886 $729,531
     
  YTD  YTD

INCOME STATEMENT (in thousands)

9/30/2019  9/30/2018

Interest Income

$19,481 $16,204
Interest Expense

7,114

4,292

Net Interest Income 12,367 11,912
     
Provision for Loan Losses 0 (350)
Realized Gains (Losses) on Securities 0  0
Non-interest Income 15,255 15,257
Operating Expenses 23,775 21,263
Income Tax Expense 770 1,254
Net Income $3,077

 

$5,002

 

 

2019 YTD net income of $3,077,000  was $1,925,000 less than that of September 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 ($157 K), and a purchase accounting gain ($171 K) resulting from the January 2018 acquisition of Bankers Bank Northeast. Net interest income was $455,000 higher than September 2018 YTD, but included $440,000 in 2019 interest recoveries. The decrease in 2019 YTD net income was mainly due to a $2.5 million increase in operating expenses, which included $2.1 million of non-recurring legal and consulting expenses.

Strong Capital Levels:
Total Risk-Based Capital Ratio = 22.61%
Tier 1 Risk-Based Capital Ratio = 21.40%
Leverage Capital Ratio = 12.685%

Funding Diversification and Balance Sheet Composition:
Loan growth was strong: a net increase of $56.7 million, 18.4% above September 30, 2018. Non-interest bearing deposits declined by $23.5 million year over year, offset by growth in certificates of deposit ($18.3 million), and other borrowings ($4.1 million). Fed Funds Purchased increased $85.6 million from September 30, 2018, which fueled the year over year growth in total assets of $91.4 million, an increase of 12.5%

Credit Quality:
There were no delinquent loans still accruing at September 30, 2019.
Robust loan loss allowance, as illustrated below:
● ALL to Total Non-Current Loans of 3,487.0%
● ALL to Total Loans of 2.16%
● Texas ratio of only 1.01%

Other Ratios:

Return on Average Assets       0.52%
Return on Average Equity       3.91%
ALL to Non-performing Loans* 699.2%

 Non-performing Assets to Total Assets

     0.14%

*Includes performing TDRs