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Section 1: 8-K (LIMESTONE BANCORP, INC. 8-K)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934


Date of Report (Date of earliest event reported):
July 22, 2020

LIMESTONE BANCORP, INC.
(Exact Name of Registrant as specified in Charter)

Kentucky
001-33033
61-1142247
(State or other jurisdiction
(Commission
(IRS Employer
of incorporation)
 File Number)
Identification No.)

2500 Eastpoint Parkway, Louisville, Kentucky
40223
(Address of principal executive offices)
(Zip code)

(502) 499-4800
(Registrant's telephone number, including area code)

N/A
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to siultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, No Par Value
LMST
NASDAQ

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
   
Emerging growth company
[ ]
   
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
[ ]



ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On July 22, 2020, Limestone Bancorp, Inc. issued a press release announcing its financial results for the second quarter ended June 30, 2020.  A copy of the press release is attached hereto as Exhibit 99.1.

The information in this Form 8-K and in Exhibit 99.1 attached hereto is being furnished to the Securities and Exchange Commission pursuant to Item 2.02 – Results of Operations and Financial Condition and shall not be deemed filed for purposes of Section 18 of the Securities Act of 1934, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
 
 
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
 
 
(d)
Exhibits
 
Exhibit No.
 
Description of Exhibit
 



SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


 
LIMESTONE BANCORP, INC.
     
Date: July 22, 2020
By:
/s/ Phillip W. Barnhouse
   
Phillip W. Barnhouse
   
Chief Financial Officer


(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit 99.1

Limestone Bancorp Reports Net Income of $2.0 million, or $0.26 per Share, for the 2nd Quarter of 2020 and $3.8 million, or $0.51 per Diluted Share, for the Six Months Ended June 30, 2020

LOUISVILLE, Ky.--(BUSINESS WIRE)--July 22, 2020--Limestone Bancorp, Inc. (NASDAQ: LMST) (“the Company”), parent company of Limestone Bank (“the Bank”), today reported unaudited results for the second quarter of 2020. The federal and state public health response to the coronavirus pandemic (“COVID-19”) continues to impact the nation and the economy. Since early March, the Company and Bank have been impacted alongside consumers and businesses in our markets. In response to the global pandemic and the resultant declarations of emergency at the state and national levels, the Bank has implemented and continues to utilize several temporary operational changes to serve customers during the COVID-19 health crisis. Lobby services were initially amended to appointment only and drive thru, mobile, and online banking were the Bank’s primary channels of serving customers. The Bank began a phased re-opening of lobby services in June and also began offering curbside service in the second quarter. Management remains committed to ensuring the Bank’s workforce remains healthy and available to serve customers.

Net income available to common shareholders for the second quarter of 2020 was $2.0 million, or $0.26 per basic and diluted common share, compared with $3.6 million, or $0.49 per basic and diluted share, for the second quarter of 2019. Net income for the six months ended June 30, 2020, was $3.8 million, or $0.51 per diluted common share, compared with net income of $6.5 million, or $0.87 per diluted share, for the six months ended June 30, 2019.

Net income before taxes was $2.4 million and $4.6 million for the second quarter of 2020 and for the first six months of 2020, respectively, compared to $3.0 million and $6.0 million for the second quarter and first six months of 2019, respectively. Income tax expense was $393,000 and $754,000 for the second quarter of 2020 and for the first six months of 2020, respectively, compared to income tax benefit of $611,000 and $488,000 for the second quarter of 2019 and for the first six months of 2019, respectively. Income tax expense for the second quarter of 2019 and six months ended June 30, 2019, benefitted $1.2 million, or $0.16 per basic and diluted common share, and $1.5 million, or $0.21 per basic and diluted common share, respectively, from the establishment of a net deferred tax asset related to a change in Kentucky tax law enacted during the first quarter of 2019. The new law eliminated the Kentucky bank franchise tax, which is assessed at a rate of 1.1% of average capital, and implemented a state income tax for the Bank at a statutory rate of 5%. The new Kentucky income tax will go into effect on January 1, 2021.

Net Interest Income – The interest rate environment has been challenging during the first six months of 2020 as the Federal Reserve, after lowering rates 75 basis points in the latter half of 2019, lowered the federal funds target rate by 50 basis points on March 6, 2020, and 100 basis points on March 15, 2020.

Net interest income increased to $10.1 million for the second quarter of 2020, compared to $9.8 million for the first quarter of 2020, and $8.8 million for the second quarter of 2019. Average loans increased to $978.3 million for the second quarter of 2020, compared to $949.2 million for the first quarter of 2020, and $793.5 million for the second quarter of 2019. Average loans for the first and second quarters of 2020 were positively impacted by the branch purchase transaction on November 15, 2019, which included $126.8 million in loans at the time of purchase. Average loans for the second quarter of 2020 were also positively impacted by $42.0 million in loan originations under the SBA Paycheck Protection Program. Net interest margin increased to 3.33% for the second quarter of 2020, compared with 3.31% for the first quarter of 2020 and decreased compared with 3.42% for the second quarter of 2019.


The yield on earning assets decreased to 4.21% in the second quarter of 2020, compared to 4.50% in the first quarter of 2020, and 4.81% in the second quarter of 2019. The yield on earning assets for the first and second quarters of 2020 were negatively impacted by falling 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 $535,000, $216,000, and $167,000 for the quarters ended June 30, 2020, March 31, 2020, and June 30, 2019, respectively. This represents 17 basis points, eight basis points, and six basis points of yield on earning assets and net interest margin for the quarters ended June 30, 2020, March 31, 2020, and June 30, 2019, respectively. Loan fee income for the second quarter of 2020 included $179,000 in fees earned on SBA PPP loans.

The cost of interest-bearing liabilities was 1.11% for the second quarter of 2020, compared to 1.45% in the first quarter of 2020, and 1.68% in the second quarter of 2019. The cost of interest-bearing liabilities continued to decline based on the downward repricing of time deposits. Time deposits declined $21.2 million during the second quarter of 2020 as approximately $160.4 million of time deposits with an average rate of 1.78% matured or repriced at lower interest rates. During the second quarter of 2020, newly originated or renewed time deposits had an average rate of 0.47% and an average term of approximately 12 months.

Net interest income increased to $19.9 million for the first six months of 2020, compared with $17.8 million in the first six months of 2019. Average loans increased to $963.8 million for the first six months of 2020, compared to $780.1 million for the first six months of 2019. Average loans were positively impacted from the branch purchase transaction on November 15, 2019, along with loan growth during 2019 and 2020, as well as loan originations under the Paycheck Protection Program. Net interest margin decreased to 3.32% in the first six months of 2020, compared with 3.51% for the first six months of 2019.

The yield on earning assets decreased to 4.35% for the first six months of 2020, compared to 4.86% for the first six months of 2019. The amount of loan fee income included in total interest income was $751,000 and $713,000 for the six months ended June 30, 2020 and June 30, 2019, respectively. This represents 12 basis points and 14 basis points of yield on earning assets and net interest margin for the six months ended June 30, 2020 and 2019, respectively. The cost of interest-bearing liabilities was 1.28% for the first six months of 2020, compared to 1.62% in the first six months of 2019.

As of June 30, 2020, time deposits comprise $446.4 million of the Company’s liabilities with $199.5 million, or 45%, set to reprice or mature in 2020 of which, $127.3 million with a current average rate of 1.41% reprice or mature in the third quarter of 2020. The following table denotes contractual time deposit maturities and average rates as of June 30, 2020:





 

Maturity
Quarter

 

As of
June 30,
2020
(in thousands)

 

Weighted
Average
Rate

 

 

 

 

 

Q3-2020

 

 

127,338

 

1.41

 

Q4-2020

 

 

72,203

 

1.16

 

Q1-2021

 

 

84,125

 

1.18

 

Q2-2021

 

 

79,152

 

0.65

 

Q3-2021

 

 

17,384

 

1.03

 

Q4-2021

 

 

9,926

 

0.75

 

Thereafter

 

 

56,242

 

1.59

 

Total time deposits

 

$

446,370

 

1.18

%


 
 

Investment Securities – The securities portfolio serves as a source of liquidity and earnings and contributes to the management of interest rate risk. Investments are made in various types of liquid assets, including U.S. Treasury obligations and securities of various federal agencies, obligations of states and political subdivisions, corporate bonds, and collateralized loan obligations. The investment portfolio increased by $3.9 million, or 2.0%, to $202.6 million at June 30, 2020, compared with $198.7 million at March 31, 2020, and decreased compared with $208.6 million at June 30, 2019.

The following table sets forth the carrying value of our securities portfolio at the dates indicated.


 
 

 

 

 

June 30, 2020

 

March 31, 2020

 

 

Amortized
Cost

 

Gross
Unrealized
Gains

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Amortized
Cost

 

Gross
Unrealized
Gains

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

(dollars in thousands)

Securities available for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and

federal agencies

 

$

20,302

 

$

772

 

$

 

 

$

21,074

 

$

20,751

 

$

353

 

$

 

 

$

21,104

Agency mortgage-backed residential

 

 

85,048

 

 

3,152

 

 

(21

)

 

 

88,179

 

 

86,840

 

 

2,428

 

 

(167

)

 

 

89,101

Collateralized loan obligations

 

 

44,730

 

 

 

 

(3,042

)

 

 

41,688

 

 

44,732

 

 

 

 

(3,978

)

 

 

40,754

State and municipal

 

 

28,708

 

 

917

 

 

(57

)

 

 

29,568

 

 

28,301

 

 

346

 

 

(493

)

 

 

28,154

Corporate bonds

 

 

23,347

 

 

313

 

 

(1,573

)

 

 

22,087

 

 

20,831

 

 

199

 

 

(1,486

)

 

 

19,544

Total available for sale

 

$

202,135

 

$

5,154

 

$

(4,693

)

 

$

202,596

 

$

201,455

 

$

3,326

 

$

(6,124

)

 

$

198,657


 

 

 


 

 

 

 


 

The Bank owns Collateralized Loan Obligations (CLOs), which are debt securities secured by professionally managed portfolios of senior-secured loans to corporations. CLO managers are typically large non-bank financial institutions or banks and are typically $300 million to $1 billion in size, contain one hundred or more loans and have five to six credit tranches ranging from AAA, AA, A, BBB, BB, B and equity tranche. Interest and principal are paid first to the AAA tranche then to the next lower rated tranche. Losses are borne first by the equity tranche then by the subsequently higher rated tranche. CLOs may be less liquid than government securities from time to time and volatility in the CLO market may cause the value of these investments to decline.

The market value of CLOs may be affected by, among other things, changes in composition of the underlying loans, changes in the cash flows from the underlying loans, defaults and recoveries on the underlying loans, capital gains and losses on the underlying loans, prepayments on the underlying loans, and other conditions or economic factors. The fair value of the Bank’s CLOs declined by approximately $3.6 million, or 8% of amortized cost, during the first quarter of 2020 as market liquidity within the CLO sector was disrupted by COVID-19. During the second quarter of 2020, the fair value of the Bank’s CLOs improved by approximately $936,000, or 2% of amortized cost, as the market stabilized.

Although the Bank attempts to mitigate the credit and liquidity risks associated with CLOs by purchasing CLOs with credit ratings of A or higher, completing pre-purchase due diligence, and through ongoing monitoring, no assurance can be given that these risk mitigation efforts will be successful. At June 30, 2020, $26.4 million and $15.3 million of our CLOs were AA and A rated, respectively. There were no CLOs rated below A and none of the CLOs were subject to ratings downgrade in 2019 or in the first half of 2020. Stress testing was completed on each security in the CLO portfolio as of quarter-end. Each security in the portfolio passed, without dollar loss, a stress scenario characterized as severe, which assumed a ten percent per annum constant prepayment rate, a twelve percent per annum constant default rate for four years followed by a four percent rate thereafter, and a forty-five percent recovery rate on a one-year lag. The Bank’s CLOs are all floating rate with rates set on a quarterly basis at three-month LIBOR plus a spread.

The fair value of the Bank’s corporate bond portfolio was also impacted by market disruption and declining rates, resulting in a fair value decline of approximately $1.5 million, or 7% of amortized cost, during the first quarter. During the second quarter of 2020, the fair value of the Bank’s corporate bond portfolio improved by approximately $27,000 as the market stabilized. The corporate bond portfolio consists of eleven subordinated debt securities of U.S. banks and bank holding companies with maturities ranging from 2024 to 2037. The securities are either fixed for five years converting to floating at an index over LIBOR or floating at an index over LIBOR from inception. Management regularly monitors the financial condition of these corporate issuers by reviewing their regulatory and public filings.


The Bank has the intent and ability to hold its CLO and corporate debt securities to maturity and, at this juncture, has determined the value decline is temporary in nature.

Provision and Allowance for Loan Losses – The Bank maintains an allowance for loan losses believed to be sufficient to absorb probable incurred losses existing in the loan portfolio. Management evaluates the adequacy of the allowance using, among other things, historical loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of the underlying collateral and current economic conditions and trends. The allowance may be allocated for specific loans or loan categories, but the entire allowance is available for any loan. The allowance consists of specific and general components. The specific component relates to loans that are individually evaluated and measured for impairment. The general component is based on historical loss experience adjusted for qualitative environmental factors. Management develops allowance estimates based on actual loss experience adjusted for current economic conditions and trends. Allowance estimates are a prudent measurement of the risk in the loan portfolio applied to individual loans based on loan type. If the mix and amount of future charge-off percentages differ significantly from the assumptions used by management in making its determination, management may be required to materially increase its allowance for loan losses and provision for loan losses, which could adversely affect results.

The allowance for loan losses to total loans was 1.05% at June 30, 2020, compared to 0.95% at March 31, 2020, and 1.10% at June 30, 2019. Loans acquired in the November 2019 branch transaction totaled $109.8 million at June 30, 2020, and $118.0 million at March 31, 2020. These loans were recorded at fair value as determined by an independent third party. The remaining discount associated with the fair value purchase accounting adjustments on the acquired loans was $347,000 at June 30, 2020, compared to $427,000 at March 31, 2020. Any subsequent deterioration of these acquired loans may require an adjustment through the allowance for loan loss. Net loan charge-offs were $22,000 and $298,000, respectively, for the three and six months ended June 30, 2020, compared to net loan recoveries of $146,000 and net loan charge-offs of $48,000, respectively, for the three and six months ended June 30, 2019.

While the Company has experienced historically strong trends in asset quality over the last several quarters and management’s assessment of risk in the loan portfolio has been low, a provision of $1.1 million and $2.2 million, or $0.12 and $0.23, per common shares after taxes, was recorded in the second quarter and the first six months of 2020, respectively, compared to no provision for loan losses in the second quarter and first six months of 2019. The 2020 loan loss provisions were attributable to the net loan charge-offs during the period, trends within the portfolio over the period, and primarily to changes in the economic and business environment attributable to COVID-19, the state and national emergencies that have been declared and the resultant risk the pandemic poses for business disruptions for the Bank’s borrowers which may lead to credit quality deterioration.

While the Company expects the U.S. Government’s economic response to the COVID-19 pandemic through monetary policy and fiscal stimulus will provide meaningful support to the economy, management deemed it prudent to increase the allowance for loan losses through its qualitative environmental factors to account for the pandemic risk.


COVID-19 Short-term Loan Concessions – In response to requests from borrowers who have been impacted by COVID-19 through business and cash flow interruption, the Bank made short-term loan modifications as defined under section 4013 of the Coronavirus Aid Relief and Economic Security Act (“CARES Act”) involving principal deferrals (interest only) and, in other cases, principal and interest deferrals. These short-term modifications are not troubled debt restructurings. The following table details those modifications by loan category and type as of June 30, 2020:

 

 

June 30, 2020

 

 

Amount

 

Number

 

 

(dollars in thousands)

 

 

 

 

 

Commercial:

 

 

 

 

 

Interest only

 

$

321

 

7

Principal and interest deferral

 

 

3,269

 

24

Commercial Real Estate

 

 

 

 

 

Construction:

 

 

 

 

 

Interest only

 

 

 

Principal and interest deferral

 

 

14,887

 

5

Farmland:

 

 

 

 

 

Interest only

 

 

9

 

1

Principal and interest deferral

 

 

2,357

 

15

Nonfarm nonresidential:

 

 

 

 

 

Interest only

 

 

18,981

 

33

Principal and interest deferral

 

 

90,674

 

61

Residential Real Estate

 

 

 

 

 

Multi-family:

 

 

 

 

 

Interest only

 

 

1,730

 

2

Principal and interest deferral

 

 

11,067

 

3

1-4 Family:

 

 

 

 

 

Interest only

 

 

4,569

 

21

Principal and interest deferral

 

 

13,030

 

77

Consumer:

 

 

 

 

 

Interest only

 

 

75

 

9

Principal and interest deferral

 

 

50

 

8

Agriculture:

 

 

 

 

 

Interest only

 

 

485

 

1

Principal and interest deferral

 

 

 

Other:

 

 

 

 

 

Interest only

 

 

 

Principal and interest deferral

 

 

 

Total modified loans

 

$

161,504

 

267


 

 

Retail purpose commercial real estate operators, as well as hotel and restaurant operators, have been disproportionately impacted by COVID-19. As of June 30, 2020, the Bank had loans totaling $62.8 million secured by retail purpose commercial real estate, $50.5 million secured by hotel and lodging real estate, and $29.8 million secured by limited and full-service restaurant real estate, or 6.4%, 5.2%, and 3.1% of total loans. As of June 30, 2020, loans with outstanding principal balances of $25.3 million for retail purpose commercial real estate, $49.3 million for hotel and lodging real estate, and $20.3 million for limited and full-service restaurant real estate were granted principal and interest deferrals. As of June 30, 2020, interest accrued but uncollected totaled $1.6 million for loans subject to short-term modifications.


Non-performing Assets Non-performing assets, which include loans on nonaccrual, accruing troubled debt restructurings, loans past due 90 days and still accruing, and other real estate owned (“OREO”), declined to $3.5 million, or 0.27%, of total assets at June 30, 2020, compared with $5.2 million, or 0.41%, of total assets at March 31, 2020, and $6.2 million, or 0.55%, of total assets at June 30, 2019. Non-performing loans declined to $1.9 million, or 0.19%, of total loans at June 30, 2020, compared with $2.0 million, or 0.20%, of total loans at March 31, 2020, and $2.9 million, or 0.37%, of total loans at June 30, 2019.

OREO declined from $3.2 million at March 31, 2020, to $1.6 million at June 30, 2020, as sales totaled $1.6 million for the second quarter of 2020. There were no fair value write-downs arising from changing marketing strategies for the three and six months ended June 30, 2020, compared to $110,000 and $260,000 for the three and six months ended June 30, 2019, respectively.

Non-interest Income and Expense – Non-interest income for the second quarter of 2020 increased $155,000 to $1.6 million, compared with $1.4 million for the second quarter of 2019. The increase was primarily related to bank card interchange fees primarily as a result of the deposit accounts acquired in the branch acquisition transaction on November 15, 2019. Non-interest expense increased $1.0 million, or 14.0%, to $8.2 million for the second quarter of 2020, compared with $7.2 million for the second quarter of 2019. The increase in the second quarter of 2020 was primarily due to an increase in salaries and employee benefits of $718,000, as the Bank added sales talent and customer facing associates during the latter half of 2019 and branch staff in connection with the branch purchase transaction. In response to COVID-19 and the change in customer branch usage patterns, the Bank realized a reduction in FTEs from 248 as of March 31, 2020, to 228 as of June 30, 2020, through attrition and workforce reduction. Salaries and employee benefits for the second quarter of 2020 included approximately $111,000 in severance expense. Quarterly savings of approximately $150,000 are expected as a result of these position eliminations.

Non-interest income for the first six months of 2020 increased $595,000 to $3.3 million, compared with $2.7 million for the first six months of 2019. The increase was primarily due to an increase in bank card interchange fees of $509,000. Non-interest expense increased $2.0 million, or 13.6%, to $16.5 million for the first six months of 2020, compared with $14.5 million for the first six months of 2019. The increase was primarily due to increases of $1.3 million in salaries and employee benefits and $320,000 in deposit account related expense partially offset by a decrease of $270,000 in OREO expense.

Subordinated Notes – Subsequent to quarter end, on July 21, 2020, the Company entered into Subordinated Note Purchase Agreements (collectively, the “Purchase Agreement”) with certain qualified institutional buyers and institutional accredited investors (the “Purchasers”) pursuant to which, on July 31, 2020, the Company will sell and issue $8.0 million in aggregate principal amount of its 5.75% Fixed-to-Floating Rate Subordinated Notes due July 31, 2029 (the “Notes”). The Notes were offered and will be sold by the Company to eligible purchasers in a private offering in reliance on the exemption from the registration requirements of Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”). The Company intends to use the net proceeds from the offering to retire in total its senior debt in the amount of $5.0 million and retain the balance for general corporate purposes.

The Notes will bear interest at a fixed annual rate of 5.75% through July 31, 2024, payable semi-annually in arrears, at which time the interest rate shall reset quarterly to an interest rate per annum equal to the then-current three-month LIBOR plus 395 basis points, payable quarterly in arrears. The Notes are redeemable, in whole or in part, on July 31, 2025, on any scheduled interest payment date thereafter and at any time upon the occurrence of certain events. The Purchase Agreement contains certain customary representations, warranties and covenants made by the Company, on the one hand, and the Purchasers, severally and not jointly, on the other hand.

The Notes will be issued under an Indenture, dated July 23, 2019 (the “Indenture”), by and between the Company and Wilmington Trust, National Association, as trustee. The Notes are not subject to any sinking fund and are not convertible into or exchangeable for any other securities or assets of the Company or any of its subsidiaries. The Notes are not subject to redemption at the option of the holder. The Notes are unsecured, subordinated obligations of the Company only and are not obligations of, and are not guaranteed by, any subsidiary of the Company. The Notes qualify as Tier 2 capital for regulatory capital purposes for the Company.


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, 2019, and Form 10-Q for the three months ended March 31, 2020.

Additional Information

Unaudited supplemental financial information for the second quarter ending June 30, 2020, 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

 

 

6/30/20

 

6/30/19

 

6/30/20

6/30/19

 

 

 

 

 

 

 

 

 

 

Income Statement Data

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

12,786

 

 

$

12,376

 

 

$

26,053

 

$

24,562

 

Interest expense

 

 

2,676

 

 

 

3,576

 

 

 

6,181

 

 

6,803

 

Net interest income

 

 

10,110

 

 

 

8,800

 

 

 

19,872

 

 

17,759

 

Provision for loan losses

 

 

1,100

 

 

 

 

 

 

2,150

 

 

 

Net interest income after provision

 

 

9,010

 

 

 

8,800

 

 

 

17,722

 

 

17,759

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

441

 

 

 

571

 

 

 

1,109

 

 

1,067

 

Bank card interchange fees

 

 

863

 

 

 

596

 

 

 

1,613

 

 

1,104

 

Bank owned life insurance income

 

 

116

 

 

 

118

 

 

 

212

 

 

217

 

Gain (loss) on sales and calls of securities, net

 

 

(5

)

 

 

(5

)

 

 

(5

)

 

(5

)

Other

 

 

186

 

 

 

166

 

 

 

396

 

 

347

 

Non-interest income

 

 

1,601

 

 

 

1,446

 

 

 

3,325

 

 

2,730

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries & employee benefits

 

 

4,633

 

 

 

3,915

 

 

 

9,171

 

 

7,830

 

Occupancy and equipment

 

 

983

 

 

 

854

 

 

 

1,982

 

 

1,752

 

Professional fees

 

 

235

 

 

 

179

 

 

 

443

 

 

344

 

Marketing expense

 

 

104

 

 

 

212

 

 

 

318

 

 

439

 

FDIC insurance

 

 

67

 

 

 

103

 

 

 

67

 

 

211

 

Data processing expense

 

 

380

 

 

 

315

 

 

 

739

 

 

628

 

State franchise and deposit tax

 

 

360

 

 

 

315

 

 

 

720

 

 

630

 

Deposit account related expense

 

 

460

 

 

 

310

 

 

 

911

 

 

591

 

Other real estate owned expense

 

 

22

 

 

 

142

 

 

 

38

 

 

308

 

Litigation and loan collection expense

 

 

59

 

 

 

34

 

 

 

124

 

 

80

 

Communications expense

 

 

247

 

 

 

189

 

 

 

465

 

 

379

 

Insurance expense

 

 

111

 

 

 

112

 

 

 

214

 

 

226

 

Postage and delivery

 

 

152

 

 

 

134

 

 

 

320

 

 

275

 

Other

 

 

423

 

 

 

410

 

 

 

959

 

 

812

 

Non-interest expense

 

 

8,236

 

 

 

7,224

 

 

 

16,471

 

 

14,505

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

2,375

 

 

 

3,022

 

 

 

4,576

 

 

5,984

 

Income tax expense (benefit)

 

 

393

 

 

 

(611

)

 

 

754

 

 

(488

)

Net income

 

$

1,982

 

 

$

3,633

 

 

$

3,822

 

$

6,472

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares – Basic

 

 

7,488,173

 

 

 

7,459,631

 

 

 

7,485,028

 

 

7,464,743

 

Weighted average shares – Diluted

 

 

7,488,173

 

 

 

7,459,631

 

 

 

7,485,028

 

 

7,464,743

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

0.26

 

 

$

0.49

 

 

$

0.51

 

$

0.87

 

Diluted earnings per common share

 

$

0.26

 

 

$

0.49

 

 

$

0.51

 

$

0.87

 

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

 

 

 

6/30/20

 

3/31/20

 

12/31/19

 

 

9/30/19

 

 

6/30/19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

12,786

 

$

13,267

 

$

12,537

 

$

12,485

 

$

12,376

 

Interest expense

 

 

2,676

 

 

3,505

 

 

3,676

 

 

3,755

 

 

3,576

 

Net interest income

 

 

10,110

 

 

9,762

 

 

8,861

 

 

8,730

 

 

8,800

 

Provision for loan losses

 

 

1,100

 

 

1,050

 

 

 

 

 

 

 

Net interest income after provision

 

 

9,010

 

 

8,712

 

 

8,861

 

 

8,730

 

 

8,800

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

441

 

 

668

 

 

681

 

 

633

 

 

571

 

Bank card interchange fees

 

 

863

 

 

750

 

 

711

 

 

623

 

 

596

 

Bank owned life insurance income

 

 

116

 

 

96

 

 

96

 

 

97

 

 

118

 

Gain (loss) on sales and calls of securities, net

 

 

(5

)

 

 

 

 

 

 

 

(5

)

Other

 

 

186

 

 

210

 

 

166

 

 

181

 

 

166

 

Non-interest income

 

 

1,601

 

 

1,724

 

 

1,654

 

 

1,534

 

 

1,446

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries & employee benefits

 

 

4,633

 

 

4,538

 

 

4,201

 

 

4,202

 

 

3,915

 

Occupancy and equipment

 

 

983

 

 

999

 

 

890

 

 

880

 

 

854

 

Professional fees

 

 

235

 

 

208

 

 

171

 

 

254

 

 

179

 

Marketing expense

 

 

104

 

 

214

 

 

218

 

 

251

 

 

212

 

FDIC insurance

 

 

67

 

 

 

 

 

 

 

 

103

 

Data processing expense

 

 

380

 

 

359

 

 

316

 

 

315

 

 

315

 

State franchise and deposit tax

 

 

360

 

 

360

 

 

265

 

 

315

 

 

315

 

Deposit account related expense

 

 

460

 

 

451

 

 

333

 

 

300

 

 

310

 

Other real estate owned expense

 

 

22

 

 

16

 

 

35

 

 

25

 

 

142

 

Litigation and loan collection expense

 

 

59

 

 

65

 

 

77

 

 

32

 

 

34

 

Communications expense

 

 

247

 

 

218

 

 

200

 

 

193

 

 

189

 

Insurance expense

 

 

111

 

 

103

 

 

109

 

 

109

 

 

112

 

Postage and delivery

 

 

152

 

 

168

 

 

140

 

 

129

 

 

134

 

Acquisition costs

 

 

 

 

 

 

775

 

 

 

 

 

Other

 

 

423

 

 

536

 

 

584

 

 

446

 

 

410

 

Non-interest expense

 

 

8,236

 

 

8,235

 

 

8,314

 

 

7,451

 

 

7,224

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

2,375

 

 

2,201

 

 

2,201

 

 

2,813

 

 

3,022

 

Income tax expense (benefit)

 

 

393

 

 

361

 

 

437

 

 

531

 

 

(611

)

Net income

 

$

1,982

 

$

1,840

 

$

1,764

 

$

2,282

 

$

3,633

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares – Basic

 

 

7,488,173

 

 

7,481,884

 

 

7,471,680

 

 

7,471,582

 

 

7,459,631

 

Weighted average shares – Diluted

 

 

7,488,173

 

 

7,481,884

 

 

7,471,680

 

 

7,471,582

 

 

7,459,631

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

0.26

 

$

0.25

 

$

0.24

 

$

0.31

 

$

0.49

 

Diluted earnings per common share

 

$

0.26

 

$

0.25

 

$

0.24

 

$

0.31

 

$

0.49

 

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

 

 

 

6/30/20

 

3/31/20

 

12/31/19

 

 

9/30/19

 

 

6/30/19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

975,759

 

 

$

961,561

 

 

$

926,271

 

 

$

803,569

 

 

$

803,114

 

Allowance for loan losses

 

 

(10,228

)

 

 

(9,150

)

 

 

(8,376

)

 

 

(8,904

)

 

 

(8,832

)

Net loans

 

 

965,531

 

 

 

952,411

 

 

 

917,895

 

 

 

794,665

 

 

 

794,282

 

Securities available for sale

 

 

202,596

 

 

 

198,657

 

 

 

209,000

 

 

 

203,381

 

 

 

208,614

 

Federal funds sold & interest-bearing deposits

 

 

39,027

 

 

 

23,639

 

 

 

21,962

 

 

 

50,327

 

 

 

40,755

 

Cash and due from financial institutions

 

 

9,990

 

 

 

9,509

 

 

 

8,241

 

 

 

7,680

 

 

 

6,860

 

Premises and equipment

 

 

19,000

 

 

 

19,282

 

 

 

19,658

 

 

 

15,098

 

 

 

14,827

 

Premises held for sale

 

 

1,149

 

 

 

1,185

 

 

 

900

 

 

 

935

 

 

 

995

 

Bank owned life insurance

 

 

16,238

 

 

 

16,128

 

 

 

16,037

 

 

 

15,946

 

 

 

15,853

 

FHLB Stock

 

 

6,142

 

 

 

6,837

 

 

 

6,237

 

 

 

6,467

 

 

 

6,693

 

Other real estate owned

 

 

1,625

 

 

 

3,225

 

 

 

3,225

 

 

 

3,225

 

 

 

3,225

 

Deferred taxes, net

 

 

27,054

 

 

 

28,208

 

 

 

27,765

 

 

 

28,029

 

 

 

28,708

 

Goodwill

 

 

6,252

 

 

 

6,252

 

 

 

6,252

 

 

 

 

 

 

 

Intangible assets

 

 

2,372

 

 

 

2,436

 

 

 

2,500

 

 

 

 

 

 

 

Accrued interest receivable and other assets

 

 

7,532

 

 

 

6,441

 

 

 

6,107

 

 

 

6,411

 

 

 

5,976

 

Total Assets

 

$

1,304,508

 

 

$

1,274,210

 

 

$

1,245,779

 

 

$

1,132,164

 

 

$

1,126,788

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

$

446,370

 

 

$

467,535

 

 

$

476,534

 

 

$

488,121

 

 

$

505,263

 

Interest checking

 

 

167,814

 

 

 

157,621

 

 

 

146,038

 

 

 

95,508

 

 

 

95,296

 

Money market

 

 

166,376

 

 

 

154,851

 

 

 

160,837

 

 

 

153,663

 

 

 

162,917

 

Savings

 

 

119,327

 

 

 

92,235

 

 

 

56,015

 

 

 

34,618

 

 

 

33,553

 

Total interest-bearing deposits

 

 

899,887

 

 

 

872,242

 

 

 

839,424

 

 

 

771,910

 

 

 

797,029

 

Demand deposits

 

 

224,901

 

 

 

185,658

 

 

 

187,551

 

 

 

151,524

 

 

 

141,448

 

Total deposits

 

 

1,124,788

 

 

 

1,057,900

 

 

 

1,026,975

 

 

 

923,434

 

 

 

938,477

 

FHLB advances

 

 

20,644

 

 

 

61,349

 

 

 

61,389

 

 

 

56,430

 

 

 

51,470

 

Junior subordinated debentures

 

 

21,000

 

 

 

21,000

 

 

 

21,000

 

 

 

21,000

 

 

 

21,000

 

Subordinated capital note

 

 

17,000

 

 

 

17,000

 

 

 

17,000

 

 

 

17,000

 

 

 

 

Senior debt

 

 

5,000

 

 

 

5,000

 

 

 

5,000

 

 

 

5,000

 

 

 

10,000

 

Accrued interest payable and other liabilities

 

 

7,020

 

 

 

7,450

 

 

 

8,665

 

 

 

4,973

 

 

 

4,419

 

Total liabilities

 

 

1,195,452

 

 

 

1,169,699

 

 

 

1,140,029

 

 

 

1,027,837

 

 

 

1,025,366

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

 

109,056

 

 

 

104,511

 

 

 

105,750

 

 

 

104,327

 

 

 

101,422

 

Total Liabilities and Stockholders’ Equity

 

$

1,304,508

 

 

$

1,274,210

 

 

$

1,245,779

 

 

$

1,132,164

 

 

$

1,126,788

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending shares outstanding

 

 

7,485,872

 

 

 

7,489,305

 

 

 

7,471,975

 

 

 

7,471,582

 

 

 

7,457,832

 

Book value per common share

 

$

14.57

 

 

$

13.95

 

 

$

14.15

 

 

$

13.96

 

 

$

13.60

 

Tangible book value per common share

 

 

13.42

 

 

 

12.79

 

 

 

12.98

 

 

 

13.96

 

 

 

13.60

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 


 

 

LIMESTONE BANCORP, INC.

Unaudited Financial Information

(in thousands, except share and per share data)


 

 

 

 

 

As of

 

 

 

 

6/30/20

 

 

 

3/31/20

 

 

 

12/31/19

 

 

 

9/30/19

 

 

 

6/30/19

 

Average Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

$

1,305,923

 

 

$

1,273,167

 

 

$

1,167,179

 

 

$

1,105,432

 

 

$

1,100,459

 

Loans

 

 

978,316

 

 

 

949,204

 

 

 

846,235

 

 

 

800,194

 

 

 

793,460

 

Earning assets

 

 

1,222,760

 

 

 

1,188,314

 

 

 

1,090,752

 

 

 

1,035,522

 

 

 

1,033,581

 

Deposits

 

 

1,116,420

 

 

 

1,052,944

 

 

 

982,991

 

 

 

933,548

 

 

 

926,730

 

Long-term debt and advances

 

 

75,259

 

 

 

105,407

 

 

 

73,695

 

 

 

63,369

 

 

 

71,989

 

Interest bearing liabilities

 

 

971,770

 

 

 

971,554

 

 

 

882,473

 

 

 

852,539

 

 

 

855,100

 

Stockholders’ equity

 

 

107,348

 

 

 

107,632

 

 

 

105,295

 

 

 

103,818

 

 

 

97,730

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarterly Performance Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

0.61

%

 

 

0.58

%

 

 

0.60

%

 

 

0.82

%

 

 

1.32

%

Return on average equity

 

 

7.43

 

 

 

6.88

 

 

 

6.65

 

 

 

8.72

 

 

 

14.91

 

Yield on average earning assets (tax equivalent)

 

 

4.21

 

 

 

4.50

 

 

 

4.57

 

 

 

4.79

 

 

 

4.81

 

Cost of interest-bearing liabilities

 

 

1.11

 

 

 

1.45

 

 

 

1.65

 

 

 

1.75

 

 

 

1.68

 

Net interest margin (tax equivalent)

 

 

3.33

 

 

 

3.31

 

 

 

3.23

 

 

 

3.35

 

 

 

3.42

 

Efficiency ratio

 

 

70.30

 

 

 

71.70

 

 

 

71.70

 

 

 

72.59

 

 

 

70.47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

1,410

 

 

$

1,500

 

 

$

1,528

 

 

$

2,389

 

 

$

2,028

 

Troubled debt restructurings on accrual

 

 

462

 

 

 

466

 

 

 

475

 

 

 

188

 

 

 

905

 

Loan 90 days or more past due still on accrual

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing loans

 

 

1,872

 

 

 

1,966

 

 

 

2,003

 

 

 

2,577

 

 

 

2,933

 

Real estate acquired through foreclosures

 

 

1,625

 

 

 

3,225

 

 

 

3,225

 

 

 

3,225

 

 

 

3,225

 

Other repossessed assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing assets

 

$

3,497

 

 

$

5,191

 

 

$

5,228

 

 

$

5,802

 

 

$

6,158

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans to total loans

 

 

0.19

%

 

 

0.20

%

 

 

0.22

%

 

 

0.32

%

 

 

0.37

%

Non-performing assets to total assets

 

 

0.27

 

 

 

0.41

 

 

 

0.42

 

 

 

0.51

 

 

 

0.55

 

Allowance for loan losses to non-performing loans

 

 

546.37

 

 

 

465.41

 

 

 

418.17

 

 

 

345.52

 

 

 

301.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to total loans

 

 

1.05

%

 

 

0.95

%

 

 

0.90

%

 

 

1.11

%

 

 

1.10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan Charge-off Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans charged off

 

$

(193

)

 

$

(335

)

 

$

(639

)

 

$

(299

)

 

$

(72

)

Recoveries

 

 

171

 

 

 

59

 

 

 

111

 

 

 

371

 

 

 

218

 

Net recoveries (charge-offs)

 

$

(22

)

 

$

(276

)

 

$

(528

)

 

$

72

 

 

$

146

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans by Risk Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

925,558

 

 

$

915,985

 

 

$

888,707

 

 

$

754,050

 

 

$

767,662

 

Watch

 

 

43,014

 

 

 

38,464

 

 

 

27,522

 

 

 

37,537

 

 

 

22,929

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Substandard

 

 

7,187

 

 

 

7,112

 

 

 

10,042

 

 

 

11,982

 

 

 

12,523

 

Doubtful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

975,759

 

 

$

961,561

 

 

$

926,271

 

 

$

803,569

 

 

$

803,114

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans by Past Due Status

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past due loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30 – 59 days

 

$

458

 

 

$

1,158

 

 

$

1,747

 

 

$

979

 

 

$

858

 

60 – 89 days

 

 

197

 

 

 

248

 

 

 

670

 

 

 

557

 

 

 

1,015

 

90 days or more

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

 

1,410

 

 

 

1,500

 

 

 

1,528

 

 

 

2,389

 

 

 

2,028

 

Total past due and nonaccrual loans

 

$

2,065

 

 

$

2,906

 

 

$

3,945

 

 

$

3,925

 

 

$

3,901

 





















 


 
   

LIMESTONE BANCORP, INC.

Unaudited Financial Information

(in thousands, except share and per share data)


 
   

 

 

As of

 

 

6/30/20

 

 

3/31/20

 

 

12/31/19

 

 

9/30/19

 

 

6/30/19

 

Risk-based Capital Ratios - Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier I leverage ratio

 

8.05

%

 

8.29

%

 

8.30

%

 

9.66

%

 

9.46

%

Common equity Tier I risk-based capital ratio

 

8.45

 

 

8.26

 

 

8.32

 

 

10.19

 

 

9.82

 

Tier I risk-based capital ratio

 

9.93

 

 

9.86

 

 

9.32

 

 

11.88

 

 

11.56

 

Total risk-based capital ratio

 

12.57

 

 

12.37

 

 

11.85

 

 

14.84

 

 

12.56

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk-based Capital Ratios – Limestone Bank

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier I leverage ratio

 

9.54

%

 

9.67

%

 

9.99

%

 

11.25

%

 

10.01

%

Common equity Tier I risk-based capital ratio

 

11.79

 

 

11.50

 

 

11.25

 

 

13.87

 

 

12.26

 

Tier I risk-based capital ratio

 

11.79

 

 

11.50

 

 

11.25

 

 

13.87

 

 

12.26

 

Total risk-based capital ratio

 

12.78

 

 

12.38

 

 

12.08

 

 

14.89

 

 

13.26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FTE employees, end of period

 

228

 

 

248

 

 

244

 

 

226

 

 

219

 


 

 

 

 

 

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 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 tangible 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

 

 

 

 

6/30/20

 

 

3/31/20

 

 

12/31/19

 

 

9/30/19

 

 

6/30/19

 

Tangible Book Value Per Share

 

(in thousands, except share and per share data)

 

 

 

 

 

Common stockholders’ equity

 

$

109,056

 

$

104,511

 

$

105,750

 

$

104,327

 

$

101,422

 

Less: Goodwill

 

 

6,252

 

 

6,252

 

 

6,252

 

 

 

 

 

Less: Intangible assets

 

 

2,372

 

 

2,436

 

 

2,500

 

 

 

 

 

Tangible common equity

 

 

100,432

 

 

95,823

 

 

96,998

 

 

104,327

 

 

101,422

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding

 

 

7,485,872

 

 

7,489,305

 

 

7,471,975

 

 

7,471,582

 

 

7,457,832

 

Tangible book value per common share

 

$

13.42

 

$

12.79

 

$

12.98

 

$

13.96

 

$

13.60

 

Book value per common share

 

 

14.57

 

 

13.95

 

 

14.15

 

 

13.96

 

 

13.60

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

6/30/20

 

 

3/31/20

 

 

12/31/19

 

 

9/30/19

 

 

6/30/19

 

Efficiency Ratio

 

(in thousands)

 

 

 

 

 

Net interest income

 

$

10,110

 

$

9,762

 

$

8,861

 

$

8,730

 

$

8,800

 

Non-interest income

 

 

1,601

 

 

1,724

 

 

1,654

 

 

1,534

 

 

1,446

 

Less: Net gain (loss) on securities

 

 

(5

)

 

 

 

 

 

 

 

(5)

 

Revenue used for efficiency ratio

 

 

11,716

 

 

11,486

 

 

10,515

 

 

10,264

 

 

10,251

 

Non-interest expense

 

 

8,236

 

 

8,235

 

 

8,314

 

 

7,451

 

 

7,224

 

Less: Acquisition costs

 

 

 

 

 

 

775

 

 

 

 

 

Expenses used for efficiency ratio

 

 

8,236

 

 

8,235

 

 

7,539

 

 

7,451

 

 

7,224

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

70.30

%

 

71.70

%

 

71.70

%

 

72.59

%

 

70.47

%


 















 

 

Contacts

John T. Taylor
Chief Executive Officer
(502) 499-4800

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