Limestone Bancorp Studies Internet Revenue of $3.9 million, or $0.51 per Share, for the 2nd Quarter of 2021 and $7.1 million, or $0.94 per Diluted Share, for the Six Months Ended June 30, 2021

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Limestone Bancorp Reports Net Income of $3.9 million, or $0.51 per Share, for the 2nd Quarter of 2021 and $7.1 million, or $0.94 per Diluted Share, for the Six Months Ended June 30, 2021

LOUISVILLE, Ky.–(BUSINESS WIRE)–Limestone Bancorp, Inc. (NASDAQ: LMST) (“the Company”), parent company of Limestone Bank (“the Bank”), today reported unaudited results for the second quarter of 2021. Net income available to common shareholders for the second quarter of 2021 was $3.9 million, or $0.51 per basic and diluted common share, compared with $2.0 million, or $0.26 per basic and diluted share, for the second quarter of 2020. Net income for the six months ended June 30, 2021, was $7.1 million, or $0.94 per diluted common share, compared with net income of $3.8 million, or $0.51 per diluted share, for the six months ended June 30, 2020.

Total assets declined nominally to $1.34 billion as of June 30, 2021, compared to $1.36 billion at March 31, 2021, and increased nominally compared to $1.31 billion at December 31, 2020. The loan portfolio decreased $31.4 million, or 3.2%, during the quarter as loan payoffs outpaced loan originations during the period. Loans decreased to $947.4 million at June 30, 2021, compared to $978.9 million at March 31, 2021, and $962.1 million at December 31, 2020. SBA Paycheck Protection Program (“PPP”) loans totaled $21.0 million at June 30, 2021, compared to $27.9 million at March 31, 2021, and $20.3 million at December 31, 2020.

Net Interest Income and Average Earning Assets – Net interest income increased to $10.9 million for the second quarter of 2021, compared to $10.7 million for the first quarter of 2021, and $10.1 million for the second quarter of 2020. Average loans decreased to $961.9 million for the second quarter of 2021, compared to $964.4 million for the first quarter of 2021, and $978.3 million for the second quarter of 2020.

Net interest margin decreased to 3.45% for the second quarter of 2021, compared with 3.53% for the first quarter of 2021, and increased from 3.33% for the second quarter of 2020. The yield on earning assets decreased to 3.91% in the second quarter of 2021, compared to 4.05% in the first quarter of 2021, and 4.21% in the second quarter of 2020. The yield on earning assets for the first and second quarters of 2021 were negatively impacted by lower interest rates on the Bank’s fed funds, certain floating rate investment securities, and loans with variable rate repricing features.

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 $933,000, $844,000, and $535,000 for the quarters ended June 30, 2021, March 31, 2021, and June 30, 2020, respectively. This represents 29 basis points, 28 basis points, and 17 basis points of yield on earning assets and net interest margin for the quarters ended June 30, 2021, March 31, 2021, and June 30, 2020, respectively. Loan fee income for the second quarter of 2021 included $692,000 in fees earned on SBA PPP loans, compared to $436,000 in the first quarter of 2021, and $179,000 in the second quarter of 2020, which represents 22 basis points, 14 basis points, and six basis points of earning asset yield and net interest margin for those quarters, respectively.

The cost of interest-bearing liabilities was 0.61% for the second quarter of 2021, compared to 0.68% in the first quarter of 2021, and 1.11% in the second quarter of 2020. The cost of interest-bearing liabilities continued to decline based on the declining volume of the time deposit portfolio, as well as the downward repricing of time deposits. Time deposits declined $51.6 million during the second quarter of 2021 as approximately $105.6 million of time deposits with an average rate of 0.56% matured and redeemed or repriced at lower interest rates. During the second quarter of 2021, newly originated or renewed time deposits had an average rate of 0.21% and an average term of approximately 14 months.

Net interest income increased to $21.6 million for the first six months of 2021, compared with $19.9 million in the first six months of 2020. Average loans decreased nominally to $963.1 million for the first six months of 2021, compared to $963.8 million for the first six months of 2020.

Net interest margin increased to 3.49% in the first six months of 2021, compared with 3.32% for the first six months of 2020. The yield on earning assets decreased to 3.98% for the first six months of 2021, compared to 4.35% for the first six months of 2020. The amount of loan fee income included in total interest income was $1.8 million and $751,000 for the six months ended June 30, 2021 and June 30, 2020, respectively. This represents 29 basis points and 12 basis points of yield on earning assets and net interest margin for the six months ended June 30, 2021 and 2020, respectively. Loan fee income included PPP fees of $1.1 million and $179,000 for the six months ended June 30, 2021 and 2020, respectively, which represents 18 basis points and three basis points of earning asset yield and net interest margin for those six-month periods, respectively. The cost of interest-bearing liabilities was 0.64% for the first six months of 2021, compared to 1.28% in the first six months of 2020.

As of June 30, 2021, time deposits comprise $303.7 million of the Company’s liabilities including $66.0 million with a current average rate of 0.43%, which reprice or mature in the third quarter of 2021. The following table denotes contractual time deposit maturities and average rates as of June 30, 2021:

Maturity

Quarter

 

As of

June 30,

2021

(in thousands)

Weighted

Average

Rate

 

 

 

 

Q3-2021

 

 

66,017

0.43

 

Q4-2021

 

 

46,336

0.33

 

Q1-2022

 

 

46,891

0.37

 

Q2-2022

 

 

31,877

0.40

 

Thereafter

 

 

112,547

0.90

 

Total time deposits

 

$

303,668

0.58

%

Provision and Allowance for Loan Losses – The allowance for loan losses to total loans was 1.33% at June 30, 2021, compared to 1.30% at March 31, 2021, and 1.05% at June 30, 2020. There was no provision for loan loss recorded in the second quarter of 2021 and a $350,000 provision for loan losses, or $0.03 per common share after taxes, for the first six months of 2021, respectively, compared to $1.1 million and $2.2 million, or $0.12 and $0.23 per common shares after taxes, in the second quarter and the first six months of 2020, respectively. The 2021 loan loss provision was attributable to the net loan charge-offs and trends within the portfolio during the year, while the provisions for 2020 were largely attributable to the uncertainty surrounding the COVID-19 pandemic related economic and business disruptions. Net loan charge-offs were $118,000 and $156,000, for the three and six months ended June 30, 2021, respectively, compared to net loan charge-offs of $22,000 and $298,000, for the three and six months ended June 30, 2020, respectively.

While the U.S. Government’s economic responses to the COVID-19 pandemic through monetary policy and fiscal stimulus have provided meaningful support to the economy, management deemed it prudent to continue to maintain its qualitative environmental factor in the allowance for loan losses to account for the pandemic risk. The Bank also granted eligible short-term loan modifications under Section 4013 of the CARES Act. Short-term loan modifications were $4.7 million as of June 30, 2021 and March 31, 2021, and $15.3 million at December 31, 2020. Included in the $4.7 million of short-term modifications is one commercial real estate loan secured by a retail entertainment facility totaling $4.4 million, which remains subject to, and is performing in accordance with, a short-term COVID-19 modification. The loan is graded substandard, has been evaluated under ASC-310-10, and allocated a specific reserve of $2.2 million as of June 30, 2021, March 31, 2021 and December 31, 2020.

Non-interest Income and Expense – Non-interest income for the second quarter of 2021 increased $534,000 to $2.1 million, compared with $1.6 million for the second quarter of 2020. The increase was primarily related to an increase in bank card interchange fees of $210,000 due to an increase in debit card transactions, and a $191,000 gain on the sale of OREO. Non-interest expense decreased $282,000, or 3.4%, to $8.0 million for the second quarter of 2021, compared with $8.2 million for the second quarter of 2020. The decrease in the second quarter of 2021 was primarily due to a decrease in deposit and state franchise tax expense of $270,000, as a result of the elimination of the Kentucky bank franchise tax discussed below.

Non-interest income for the first six months of 2021 increased $694,000 to $4.0 million, compared with $3.3 million for the first six months of 2020. The increase was primarily due to an increase in bank card interchange fees of $420,000 and a $191,000 gain on the sale of OREO. Non-interest expense decreased $533,000, or 3.2%, to $15.9 million for the first six months of 2021, compared with $16.5 million for the first six months of 2020. The decrease was primarily due to a decrease of $540,000 in deposit and state franchise tax expense.

Income Taxes – Income tax expense was $1.2 million and $2.2 million for the second quarter of 2021 and for the first six months of 2021, respectively, compared with $393,000 and $754,000 for the second quarter of 2020 and for the first six months of 2020, respectively. Effective January 1, 2021, the state of Kentucky eliminated the bank franchise tax, which was previously recorded as a non-interest expense, and implemented a state income tax at a statutory rate of 5%. State income tax expense was $235,000 and $449,000 for the second quarter of 2021 and for the first six months of 2021, respectively, compared to a state income tax benefit of $79,000 and $151,000 for the second quarter of 2020 and for the first six months of 2020, respectively, which were related to the establishment of a net deferred tax asset due to the tax law change.

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 impact and duration of the COVID-19 pandemic and national, state and local emergency conditions the pandemic has produced; 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 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, 2020.

Additional Information

Unaudited supplemental financial information for the second quarter ending June 30, 2021, follows.

LIMESTONE BANCORP, INC.

Unaudited Financial Information

(in thousands, except share and per share data)

 

 

Three

 

Three

Six

 

Six

 

Months

 

Months

Months

Months

 

Ended

 

Ended

Ended

Ended

 

6/30/21

 

6/30/20

6/30/21

6/30/20

 

 

 

 

 

 

 

 

 

 

Income Statement Data

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

12,376

 

$

12,786

 

$

24,626

 

$

26,053

Interest expense

 

1,462

 

 

2,676

 

 

3,032

 

 

6,181

Net interest income

 

10,914

 

 

10,110

 

 

21,594

 

 

19,872

Provision for loan losses

 

 

 

1,100

 

 

350

 

 

2,150

Net interest income after provision

 

10,914

 

 

9,010

 

 

21,244

 

 

17,722

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

520

 

 

441

 

 

1,068

 

 

1,109

Bank card interchange fees

 

1,073

 

 

863

 

 

2,033

 

 

1,613

Bank owned life insurance income

 

143

 

 

116

 

 

308

 

 

212

Gain on sale of OREO

 

191

 

 

 

 

191

 

 

Other

 

208

 

 

181

 

 

419

 

 

391

Non-interest income

 

2,135

 

 

1,601

 

 

4,019

 

 

3,325

 

 

 

 

 

 

 

 

 

 

 

 

Salaries & employee benefits

 

4,467

 

 

4,633

 

 

8,949

 

 

9,171

Occupancy and equipment

 

979

 

 

983

 

 

2,039

 

 

1,982

Professional fees

 

246

 

 

235

 

 

482

 

 

443

Marketing expense

 

179

 

 

104

 

 

361

 

 

318

FDIC insurance

 

90

 

 

67

 

 

225

 

 

67

Data processing expense

 

377

 

 

380

 

 

755

 

 

739

Deposit and state franchise tax

 

90

 

 

360

 

 

180

 

 

720

Deposit account related expense

 

556

 

 

460

 

 

1,047

 

 

911

Communications expense

 

194

 

 

247

 

 

367

 

 

465

Insurance expense

 

115

 

 

111

 

 

219

 

 

214

Postage and delivery

 

139

 

 

152

 

 

291

 

 

320

Other

 

522

 

 

504

 

 

1,023

 

 

1,121

Non-interest expense

 

7,954

 

 

8,236

 

 

15,938

 

 

16,471

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

5,095

 

 

2,375

 

 

9,325

 

 

4,576

Income tax expense

 

1,194

 

 

393

 

 

2,202

 

 

754

Net income

$

3,901

 

$

1,982

 

$

7,123

 

$

3,822

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares – Basic

 

7,597,202

 

 

7,488,173

 

 

7,586,267

 

 

7,485,028

Weighted average shares – Diluted

 

7,597,202

 

 

7,488,173

 

 

7,586,267

 

 

7,485,028

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.51

 

$

0.26

 

$

0.94

 

$

0.51

Diluted earnings per common share

$

0.51

 

$

0.26

 

$

0.94

 

$

0.51

Cash dividends declared per common share

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

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

 

6/30/21

 

3/31/21

 

12/31/20

 

9/30/20

 

6/30/20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

12,376

 

$

12,250

 

$

12,606

 

$

12,094

 

$

12,786

Interest expense

 

1,462

 

 

1,570

 

 

1,820

 

 

2,151

 

 

2,676

Net interest income

 

10,914

 

 

10,680

 

 

10,786

 

 

9,943

 

 

10,110

Provision for loan losses

 

 

 

350

 

 

900

 

 

1,350

 

 

1,100

Net interest income after provision

 

10,914

 

 

10,330

 

 

9,886

 

 

8,593

 

 

9,010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

520

 

 

548

 

 

594

 

 

565

 

 

441

Bank card interchange fees

 

1,073

 

 

960

 

 

882

 

 

881

 

 

863

Bank owned life insurance income

 

143

 

 

165

 

 

99

 

 

113

 

 

116

Gain on sale of OREO

 

191

 

 

 

 

 

 

 

 

Other

 

208

 

 

211

 

 

202

 

 

183

 

 

181

Non-interest income

 

2,135

 

 

1,884

 

 

1,777

 

 

1,742

 

 

1,601

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries & employee benefits

 

4,467

 

 

4,482

 

 

4,167

 

 

4,413

 

 

4,633

Occupancy and equipment

 

979

 

 

1,060

 

 

1,011

 

 

1,008

 

 

983

Professional fees

 

246

 

 

236

 

 

233

 

 

261

 

 

235

Marketing expense

 

179

 

 

182

 

 

177

 

 

134

 

 

104

FDIC insurance

 

90

 

 

135

 

 

81

 

 

81

 

 

67

Data processing expense

 

377

 

 

378

 

 

381

 

 

382

 

 

380

Deposit and state franchise tax

 

90

 

 

90

 

 

395

 

 

360

 

 

360

Deposit account related expense

 

556

 

 

491

 

 

492

 

 

487

 

 

460

Communications expense

 

194

 

 

173

 

 

190

 

 

201

 

 

247

Insurance expense

 

115

 

 

104

 

 

112

 

 

102

 

 

111

Postage and delivery

 

139

 

 

152

 

 

151

 

 

156

 

 

152

Other

 

522

 

 

501

 

 

476

 

 

494

 

 

504

Non-interest expense

 

7,954

 

 

7,984

 

 

7,866

 

 

8,079

 

 

8,236

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

5,095

 

 

4,230

 

 

3,797

 

 

2,256

 

 

2,375

Income tax expense

 

1,194

 

 

1,008

 

 

680

 

 

190

 

 

393

Net income

$

3,901

 

$

3,222

 

$

3,117

 

$

2,066

 

$

1,982

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares – Basic

 

7,597,202

 

 

7,575,211

 

 

7,499,323

 

 

7,499,223

 

 

7,488,173

Weighted average shares – Diluted

 

7,597,202

 

 

7,575,211

 

 

7,499,323

 

 

7,499,223

 

 

7,488,173

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.51

 

$

0.43

 

$

0.42

 

$

0.28

 

$

0.26

Diluted earnings per common share

$

0.51

 

$

0.43

 

$

0.42

 

$

0.28

 

$

0.26

Cash dividends declared per common share

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

LIMESTONE BANCORP, INC.

Unaudited Financial Information

(in thousands, except share and per share data)

 

 

As of

 

 

6/30/21

 

3/31/21

 

12/31/20

 

9/30/20

 

6/30/20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

$

947,425

 

$

978,865

 

$

962,081

 

$

974,468

 

$

975,759

 

Allowance for loan losses

 

(12,637

)

 

(12,755

)

 

(12,443

)

 

(11,481

)

 

(10,228

)

Net loans

 

934,788

 

 

966,110

 

 

949,638

 

 

962,987

 

 

965,531

 

Securities held to maturity

 

46,717

 

 

41,254

 

 

 

 

 

 

 

Securities available for sale

 

182,154

 

 

177,690

 

 

203,862

 

 

203,544

 

 

202,596

 

Federal funds sold & interest-bearing deposits

 

75,536

 

 

74,047

 

 

56,863

 

 

24,358

 

 

39,027

 

Cash and due from financial institutions

 

9,584

 

 

9,800

 

 

10,830

 

 

7,593

 

 

9,990

 

Premises and equipment

 

21,912

 

 

20,405

 

 

18,533

 

 

18,572

 

 

19,000

 

Premises held for sale

 

980

 

 

1,035

 

 

1,060

 

 

1,110

 

 

1,149

 

Bank owned life insurance

 

23,738

 

 

23,601

 

 

23,441

 

 

23,347

 

 

16,238

 

FHLB Stock

 

5,449

 

 

5,810

 

 

5,887

 

 

5,962

 

 

6,142

 

Other real estate owned

 

 

 

1,765

 

 

1,765

 

 

1,625

 

 

1,625

 

Deferred taxes, net

 

23,452

 

 

24,992

 

 

25,714

 

 

26,540

 

 

27,054

 

Goodwill

 

6,252

 

 

6,252

 

 

6,252

 

 

6,252

 

 

6,252

 

Intangible assets

 

2,117

 

 

2,181

 

 

2,244

 

 

2,308

 

 

2,372

 

Accrued interest receivable and other assets

 

6,231

 

 

6,769

 

 

6,213

 

 

7,426

 

 

7,532

 

Total Assets

$

1,338,910

 

$

1,361,711

 

$

1,312,302

 

$

1,291,624

 

$

1,304,508

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

$

303,668

 

$

355,309

 

$

367,552

 

$

398,429

 

$

446,370

 

Interest checking

 

216,344

 

 

211,322

 

 

190,625

 

 

168,735

 

 

167,814

 

Money market

 

191,773

 

 

180,137

 

 

175,785

 

 

174,588

 

 

166,376

 

Savings

 

160,257

 

 

151,340

 

 

142,623

 

 

134,962

 

 

119,327

 

Total interest-bearing deposits

 

872,042

 

 

898,108

 

 

876,585

 

 

876,714

 

 

899,887

 

Demand deposits

 

267,059

 

 

268,882

 

 

243,022

 

 

217,675

 

 

224,901

 

Total deposits

 

1,139,101

 

 

1,166,990

 

 

1,119,607

 

 

1,094,389

 

 

1,124,788

 

FHLB advances

 

20,000

 

 

20,613

 

 

20,623

 

 

30,634

 

 

20,644

 

Junior subordinated debentures

 

21,000

 

 

21,000

 

 

21,000

 

 

21,000

 

 

21,000

 

Subordinated capital note

 

25,000

 

 

25,000

 

 

25,000

 

 

25,000

 

 

17,000

 

Senior debt

 

 

 

 

 

 

 

 

 

5,000

 

Accrued interest payable and other liabilities

 

9,850

 

 

8,588

 

 

10,048

 

 

8,315

 

 

7,020

 

Total liabilities

 

1,214,951

 

 

1,242,191

 

 

1,196,278

 

 

1,179,338

 

 

1,195,452

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

123,959

 

 

119,520

 

 

116,024

 

 

112,286

 

 

109,056

 

Total Liabilities and Stockholders’ Equity

$

1,338,910

 

$

1,361,711

 

$

1,312,302

 

$

1,291,624

 

$

1,304,508

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending shares outstanding

 

7,602,686

 

 

7,594,499

 

 

7,498,865

 

 

7,499,183

 

 

7,485,872

 

Book value per common share

$

16.30

 

$

15.74

 

$

15.47

 

$

14.97

 

$

14.57

 

Tangible book value per common share

15.20

14.63

14.34

13.83

13.42

LIMESTONE BANCORP, INC.

Unaudited Financial Information

(in thousands, except share and per share data)

 

 

As of

 

 

6/30/21

 

3/31/21

 

12/31/20

 

9/30/20

 

6/30/20

 

Average Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

$

1,361,080

 

$

1,316,878

 

$

1,304,715

 

$

1,295,814

 

$

1,305,923

 

Loans

 

961,922

 

 

964,353

 

 

965,339

 

 

963,486

 

 

978,316

 

Earning assets

 

1,275,363

 

 

1,230,610

 

 

1,220,043

 

 

1,213,039

 

 

1,222,760

 

Deposits

 

1,164,524

 

 

1,125,943

 

 

1,115,985

 

 

1,111,865

 

 

1,116,420

 

Long-term debt and advances

 

66,000

 

 

66,617

 

 

67,280

 

 

65,769

 

 

75,259

 

Interest bearing liabilities

 

956,172

 

 

941,342

 

 

951,620

 

 

955,661

 

 

971,770

 

Stockholders’ equity

 

121,386

 

 

117,663

 

 

113,868

 

 

110,930

 

 

107,348

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarterly Performance Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.15

%

 

0.99

%

 

0.95

%

 

0.63

%

 

0.61

%

Return on average equity

 

12.89

 

 

11.11

 

 

10.89

 

 

7.41

 

 

7.43

 

Yield on average earning assets (tax equivalent)

 

3.91

 

 

4.05

 

 

4.12

 

 

3.98

 

 

4.21

 

Cost of interest-bearing liabilities

 

0.61

 

 

0.68

 

 

0.76

 

 

0.90

 

 

1.11

 

Net interest margin (tax equivalent)

 

3.45

 

 

3.53

 

 

3.53

 

 

3.27

 

 

3.33

 

Efficiency ratio

 

60.93

 

 

63.55

 

 

62.61

 

 

69.14

 

 

70.30

 

Non-interest expense to average assets

 

2.34

 

 

2.46

 

 

2.40

 

 

2.48

 

 

2.54

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

$

1,530

 

$

1,996

 

$

1,676

 

$

2,038

 

$

1,410

 

Troubled debt restructurings on accrual

 

390

 

 

399

 

 

480

 

 

489

 

 

462

 

Loan 90 days or more past due still on accrual

 

 

 

 

 

 

 

 

 

 

Total non-performing loans

 

1,920

 

 

2,395

 

 

2,156

 

 

2,527

 

 

1,872

 

Real estate acquired through foreclosures

 

 

 

1,765

 

 

1,765

 

 

1,625

 

 

1,625

 

Other repossessed assets

 

 

 

 

 

 

 

 

 

 

Total non-performing assets

$

1,920

 

$

4,160

 

$

3,921

 

$

4,152

 

$

3,497

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans to total loans

 

0.20

%

 

0.24

%

 

0.22

%

 

0.26

%

 

0.19

%

Non-performing assets to total assets

 

0.14

 

 

0.31

 

 

0.30

 

 

0.32

 

 

0.27

 

Allowance for loan losses to non-performing loans

 

658.18

 

 

532.57

 

 

577.13

 

 

454.33

 

 

546.37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to total loans

 

1.33

%

 

1.30

%

 

1.29

%

 

1.18

%

 

1.05

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan Charge-off Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans charged off

$

(178

)

$

(77

)

$

(124

)

$

(150

)

$

(193

)

Recoveries

 

60

 

 

39

 

 

186

 

 

53

 

 

171

 

Net (charge-offs) recoveries

$

(118

)

$

(38

)

$

62

 

$

(97

)

$

(22

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans by Risk Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

913,753

 

$

942,492

 

$

926,025

 

$

923,895

 

$

925,558

 

Watch

 

15,888

 

 

17,929

 

 

18,879

 

 

27,782

 

 

43,014

 

Special Mention

 

 

 

 

 

 

 

364

 

 

 

Substandard

 

17,784

 

 

18,444

 

 

17,177

 

 

22,427

 

 

7,187

 

Doubtful

 

 

 

 

 

 

 

 

 

 

Total

$

947,425

 

$

978,865

 

$

962,081

 

$

974,468

 

$

975,759

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans by Past Due Status

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past due loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30 – 59 days

$

181

 

$

677

 

$

1,537

 

$

482

 

$

458

 

60 – 89 days

 

252

 

 

254

 

 

372

 

 

265

 

 

197

 

90 days or more

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

1,530

 

 

1,996

 

 

1,676

 

 

2,038

 

 

1,410

 

Total past due and nonaccrual loans

$

1,963

 

$

2,927

 

$

3,585

 

$

2,785

 

$

2,065

 

LIMESTONE BANCORP, INC.

Unaudited Financial Information

(in thousands, except share and per share data)

 

 

 

As of

 

 

6/30/21

 

 

3/31/21

 

 

12/31/20

 

 

9/30/20

 

 

6/30/20

 

Risk-based Capital Ratios – Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier I leverage ratio

 

8.70

%

 

8.59

%

 

8.24

%

 

8.17

%

 

8.05

%

Common equity Tier I risk-based capital ratio

 

9.48

 

 

8.96

 

 

8.72

 

 

8.54

 

 

8.45

 

Tier I risk-based capital ratio

 

10.63

 

 

10.00

 

 

9.67

 

 

9.77

 

 

9.93

 

Total risk-based capital ratio

 

14.09

 

 

13.42

 

 

13.14

 

 

13.22

 

 

12.57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk-based Capital Ratios – Limestone Bank

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier I leverage ratio

 

10.55

%

 

10.44

%

 

10.21

%

 

9.90

%

 

9.54

%

Common equity Tier I risk-based capital ratio

 

12.95

 

 

12.21

 

 

12.05

 

 

11.88

 

 

11.79

 

Tier I risk-based capital ratio

 

12.95

 

 

12.21

 

 

12.05

 

 

11.88

 

 

11.79

 

Total risk-based capital ratio

 

14.11

 

 

13.37

 

 

13.20

 

 

12.97

 

 

12.78

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FTE employees, end of period

 

231

 

 

225

 

 

219

 

 

224

 

 

228

 

Non-GAAP Financial Measures Reconciliation

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 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 intangible assets from the calculation of risk-based capital.

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.

 

As of

 

 

6/30/21

 

3/31/21

 

12/31/20

 

9/30/20

 

6/30/20

 

Tangible Book Value Per Share

(in thousands, except share and per share data)

 

 

 

 

Common stockholders’ equity

$

123,959

 

$

119,520

 

$

116,024

 

$

112,286

 

$

109,056

 

Less: Goodwill

 

6,252

 

 

6,252

 

 

6,252

 

 

6,252

 

 

6,252

 

Less: Intangible assets

 

2,117

 

 

2,181

 

 

2,244

 

 

2,308

 

 

2,372

 

Tangible common equity

 

115,590

 

 

111,087

 

 

107,528

 

 

103,726

 

 

100,432

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding

 

7,602,686

 

 

7,594,499

 

 

7,498,865

 

 

7,499,183

 

 

7,485,872

 

Tangible book value per common share

$

15.20

 

$

14.63

 

$

14.34

 

$

13.83

 

$

13.42

 

Book value per common share

 

16.30

 

 

15.74

 

 

15.47

 

 

14.97

 

 

14.57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

6/30/21

 

3/31/21

 

12/31/20

 

9/30/20

 

6/30/20

 

Efficiency Ratio

(in thousands)

 

 

 

 

Net interest income

$

10,914

 

$

10,680

 

$

10,786

 

$

9,943

 

$

10,110

 

Non-interest income

 

2,135

 

 

1,884

 

 

1,777

 

 

1,742

 

 

1,601

 

Less: Net gain (loss) on securities

 

(5

)

 

 

 

 

 

 

 

(5

)

Revenue used for efficiency ratio

 

13,054

 

 

12,564

 

 

12,563

 

 

11,685

 

 

11,716

 

Non-interest expense

 

7,954

 

 

7,984

 

 

7,866

 

 

8,079

 

 

8,236

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

60.93

%

 

63.55

%

 

62.61

%

 

69.14

%

 

70.30

%