Press Release

Limestone Bancorp Reports Net Income of $3.6 Million, or $0.49 Per Diluted Share, for the 2nd Quarter of 2019 and $6.5 Million, or $0.87 Per Diluted Share, for the Six Months Ended June 30, 2019

Company Release - 7/24/2019 4:05 PM ET

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 2019. Net income available to common shareholders for the second quarter of 2019 was $3.6 million, or $0.49 per basic and diluted common share, compared with $2.0 million, or $0.27 per basic and diluted share, for the second quarter of 2018. Net income for the six months ended June 30, 2019, was $6.5 million, or $0.87 per diluted common share, compared with net income of $3.9 million, or $0.57 per diluted share, for the six months ended June 30, 2018.

Net income before taxes was $3.0 million and $6.0 million for the second quarter of 2019 and for the first six months of 2019, respectively, compared to $2.5 million and $4.7 million for the second quarter and first six months of 2018, respectively. Income tax benefit was $611,000 and $488,000 for the second quarter of 2019 and for the first six months of 2019, respectively, compared to income tax expense of $483,000 and $812,000 for the second quarter of 2018 and for the first six months of 2018, respectively.

Income Taxes – During the first quarter of 2019, the Company benefitted $341,000, or $0.05 per basic and diluted share, from the establishment of a net deferred tax asset related to a change in Kentucky tax law enacted during the quarter. The new law eliminates the Kentucky bank franchise tax, which is assessed at a rate of 1.1% of average capital, and implements 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.

In addition, the Company had state net operating loss carryforwards (“NOLs”) of $30.2 million, which were previously subject to a full valuation allowance and will begin to expire in 2025. In April 2019, tax legislation was enacted which allowed for certain Kentucky NOLs to be utilized in a combined filing return. Therefore, the Company will begin filing a Kentucky combined filing in 2021, and as a result, a state NOL tax benefit, net of federal impact, of $1.2 million, or approximately $0.16 per basic and diluted share, was recognized in the second quarter of 2019.

Net Interest Income – Net interest income decreased to $8.8 million for the second quarter of 2019, compared with $9.0 million in the first quarter of 2019 and increased from $8.4 million in the second quarter of 2018. Average loans increased to $793.5 million for the second quarter of 2019, compared to $766.5 million for the first quarter of 2019 and $734.7 million for the second quarter of 2018. Net interest margin decreased to 3.42% in the second quarter of 2019, compared with 3.61% for the first quarter of 2019 and 3.57% for the second quarter of 2018.

The yield on earning assets decreased to 4.81% for the second quarter of 2019, compared to 4.90% for the first quarter of 2019 and increased from 4.51% in the second quarter of 2018. 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 $167,000, $546,000, and $92,000 for the quarters ended June 30, 2019, March 31, 2019, and June 30, 2018, respectively. This represents six basis points, 22 basis points, and four basis points of yield on earning assets and net interest margin for the quarters ended June 30, 2019, March 31, 2019, and June 30, 2018, respectively. The cost of interest bearing liabilities was 1.68% for the second quarter of 2019, compared to 1.57% for the first quarter of 2019 and 0.42% for the second quarter of 2018.

Net interest income increased to $17.8 million for the first six months of 2019, compared with $16.6 million in the first six months of 2018. Average loans increased to $780.0 million for the first six months of 2019, compared to $729.5 million for the first six months of 2018. Net interest margin decreased to 3.51% in the first six months of 2019, compared with 3.60% for the first six months of 2018.

The yield on earning assets increased to 4.86% for the first six months of 2019, compared to 4.48% for the first six months of 2018. The amount of loan fee income included in total interest income was $713,000 and $189,000 for the six months ended June 30, 2019 and June 30, 2018, respectively. This represents 14 basis points and four basis points of yield on earning assets and net interest margin for the six months ended June 30, 2019 and 2018, respectively. The cost of interest bearing liabilities was 1.62% for the first six months of 2019, compared to 1.05% in the first six months of 2018.

Provision and Allowance for Loan Losses – The allowance for loan losses to total loans was 1.10% at June 30, 2019, compared to 1.10% at March 31, 2019, and 1.15% at June 30, 2018. Net loan recoveries were $146,000 and net loan charge-offs of $48,000, respectively, for the three and six months ended June 30, 2019, compared to net loan recoveries of $204,000 and $528,000, respectively, for the three and six months ended June 30, 2018. Based upon historically strong trends in asset quality and management’s assessment of risk in the loan portfolio, no provision for loan losses was recorded for the three and six months ended June 30, 2019, compared to a negative provision for loan loss of $150,000 recorded for the three and six months ended June 30, 2018.

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”), remained unchanged at $6.2 million, or 0.55% of total assets, at June 30, 2019, compared with $6.2 million, or 0.57% of total assets, at March 31, 2019, and decreased compared to $8.6 million, or 0.83% of total assets, at June 30, 2018. Non-performing loans increased to $2.9 million, or 0.37% of total loans, at June 30, 2019, compared with $2.8 million, or 0.36% of total loans, at March 31, 2019, and decreased from $4.1 million, or 0.55% of total loans, at June 30, 2018.

OREO decreased to $3.2 million at June 30, 2019, compared with $3.3 million at March 31, 2019, and $4.5 million at June 30, 2018. Fair value write-downs arising from changing marketing strategies totaled $110,000 and $260,000 for the three and six months ended June 30, 2019, respectively, compared to $265,000 and $325,000 for the three and six months ended June 30, 2018, respectively.

Non-interest Income and Expense – Non-interest income for the second quarter of 2019 increased $99,000 to $1.4 million, compared with $1.3 million for the second quarter of 2018. The increase from the second quarter of 2018 was primarily due to an increase in bank card interchange fees of $150,000. Non-interest expense decreased $181,000, or 2.4% to $7.2 million for the second quarter of 2019, compared with $7.4 million for the second quarter of 2018. The decrease from the second quarter of 2018 was primarily due to a decrease of $96,000 in marketing expense and $95,000 in OREO expense.

Non-interest income for the first six months of 2019 increased $132,000 to $2.7 million, compared with $2.6 million for the first six months of 2018. The increase was primarily due to an increase in bank card interchange fees of $257,000 partially offset by a decrease in service charges on deposit accounts of $92,000. Non-interest expense decreased $69,000, or 0.5% to $14.5 million for the first six months of 2019, compared with $14.6 million for the first six months of 2018. The decrease was primarily due to decreases of $169,000 in marketing expense and $110,000 in FDIC insurance expense partially offset by an increase in salaries and employee benefits of $157,000, or 2.0%, and an increase in deposit account related expense of $151,000.

Capital – At June 30, 2019, the Bank’s Tier 1 leverage ratio was 10.01%, compared with 9.88% at March 31, 2019, and its Total risk-based capital ratio was 13.26% at June 30, 2019, compared with 13.01% at March 31, 2019. At June 30, 2019, the Company’s Tier 1 leverage ratio was 9.46%, compared with 9.30% at March 31, 2019, and its Total risk-based capital ratio was 12.56%, compared with 12.32% at March 31, 2019. At June 30, 2019, the Company’s Common equity Tier 1 risk-based capital ratio was 9.82%, compared with 9.57% at March 31, 2019.

About Limestone Bancorp, Inc.
Limestone Bancorp, Inc. (NASDAQ: LMST) is a Louisville, Kentucky-based bank holding company which operates banking centers in 12 counties through its wholly-owned subsidiary Limestone Bank. The Bank’s markets include metropolitan Louisville in Jefferson County and the surrounding counties of Henry and Bullitt, and extend south along the Interstate 65 corridor. The Bank serves southern and south central Kentucky from banking centers in Butler, Green, Hart, Edmonson, Barren, Warren, Ohio and Daviess counties. The Bank also has a banking center in Lexington, Kentucky, the second largest city in the state. 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: 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, 2018.

Additional Information
Unaudited supplemental financial information for the second quarter ending June 30, 2019, 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

 

 

6/30/19

 

6/30/18

 

6/30/19

 

6/30/18

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement Data

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

12,376

 

$

10,585

 

$

24,562

 

$

20,600

 

Interest expense

 

3,576

 

 

2,211

 

 

6,803

 

 

4,045

 

Net interest income

 

8,800

 

 

8,374

 

 

17,759

 

 

16,555

 

Provision (negative provision) for loan losses

 

 

 

(150

)

 

 

 

(150

)

Net interest income after provision

 

8,800

 

 

8,524

 

 

17,759

 

 

16,705

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

571

 

 

591

 

 

1,067

 

 

1,159

 

Bank card interchange fees

 

596

 

 

446

 

 

1,104

 

 

847

 

Bank owned life insurance income

 

118

 

 

138

 

 

217

 

 

237

 

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

 

(5

)

 

(6

)

 

(5

)

 

(6

)

Other

 

166

 

 

178

 

 

347

 

 

361

 

Non-interest income

 

1,446

 

 

1,347

 

 

2,730

 

 

2,598

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries & employee benefits

 

3,915

 

 

3,885

 

 

7,830

 

 

7,673

 

Occupancy and equipment

 

854

 

 

880

 

 

1,752

 

 

1,775

 

Professional fees

 

179

 

 

222

 

 

344

 

 

427

 

Marketing expense

 

212

 

 

308

 

 

439

 

 

608

 

FDIC insurance

 

103

 

 

139

 

 

211

 

 

321

 

Data processing expense

 

315

 

 

307

 

 

628

 

 

631

 

State franchise and deposit tax

 

315

 

 

282

 

 

630

 

 

564

 

Deposit account related expense

 

310

 

 

221

 

 

591

 

 

440

 

Other real estate owned expense

 

142

 

 

237

 

 

308

 

 

319

 

Litigation and loan collection expense

 

34

 

 

48

 

 

80

 

 

101

 

Other

 

845

 

 

876

 

 

1,692

 

 

1,715

 

Non-interest expense

 

7,224

 

 

7,405

 

 

14,505

 

 

14,574

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

3,022

 

 

2,466

 

 

5,984

 

 

4,729

 

Income tax expense (benefit)

 

(611

)

 

483

 

 

(488

)

 

812

 

Net income

$

3,633

 

1,983

 

$

6,472

 

 $

3,917

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares – Basic

 

7,459,631

 

 

7,424,742

 

 

7,464,743

 

 

6,858,228

 

Weighted average shares – Diluted

 

7,459,631

 

 

7,424,742

 

 

7,464,743

 

 

6,858,228

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.49

 

$

0.27

 

$

0.87

 

$

0.57

 

Diluted earnings per common share

$

0.49

 

$

0.27

 

$

0.87

 

$

0.57

 

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

 

 

6/30/19

 

3/31/19

 

12/31/18

 

9/30/18

 

6/30/18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

12,376

 

$

12,186

 

$

11,741

 

$

11,120

 

$

10,585

 

Interest expense

 

3,576

 

 

3,227

 

 

3,037

 

 

2,708

 

 

2,211

 

Net interest income

 

8,800

 

 

8,959

 

 

8,704

 

 

8,412

 

 

8,374

 

Provision (negative provision) for loan losses

 

 

 

 

 

 

 

(350

)

 

(150

)

Net interest income after provision

 

8,800

 

 

8,959

 

 

8,704

 

 

8,762

 

 

8,524

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

571

 

 

496

 

 

588

 

 

608

 

 

591

 

Bank card interchange fees

 

596

 

 

508

 

 

573

 

 

411

 

 

446

 

Bank owned life insurance income

 

118

 

 

99

 

 

100

 

 

100

 

 

138

 

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

 

(5

)

 

 

 

 

 

 

 

(6

)

Other

 

166

 

 

181

 

 

411

 

 

390

 

 

178

 

Non-interest income

 

1,446

 

 

1,284

 

 

1,672

 

 

1,509

 

 

1,347

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries & employee benefits

 

3,915

 

 

3,915

 

 

3,923

 

 

3,893

 

 

3,885

 

Occupancy and equipment

 

854

 

 

898

 

 

915

 

 

896

 

 

880

 

Professional fees

 

179

 

 

165

 

 

201

 

 

186

 

 

222

 

Marketing expense

 

212

 

 

227

 

 

247

 

 

259

 

 

308

 

FDIC insurance

 

103

 

 

108

 

 

118

 

 

118

 

 

139

 

Data processing expense

 

315

 

 

313

 

 

280

 

 

281

 

 

307

 

State franchise and deposit tax

 

315

 

 

315

 

 

272

 

 

282

 

 

282

 

Deposit account related expense

 

310

 

 

281

 

 

170

 

 

213

 

 

221

 

Other real estate owned expense

 

142

 

 

166

 

 

278

 

 

271

 

 

237

 

Litigation and loan collection expense

 

34

 

 

46

 

 

83

 

 

61

 

 

48

 

Other

 

845

 

 

847

 

 

835

 

 

770

 

 

876

 

Non-interest expense

 

7,224

 

 

7,281

 

 

7,322

 

 

7,230

 

 

7,405

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

3,022

 

 

2,962

 

 

3,054

 

 

3,041

 

 

2,466

 

Income tax expense (benefit)

 

(611

)

 

123

 

 

614

 

 

604

 

 

483

 

Net income

$

3,633

 

$

2,839

 

$

2,440

 

$

2,437

 

$

1,983

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares – Basic

 

7,459,631

 

 

7,469,912

 

 

7,457,206

 

 

7,455,316

 

 

7,424,742

 

Weighted average shares – Diluted

 

7,459,631

 

 

7,469,912

 

 

7,457,206

 

 

7,455,316

 

 

7,424,742

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.49

 

$

0.38

 

$

0.33

 

$

0.33

 

$

0.27

 

Diluted earnings per common share

$

0.49

 

$

0.38

 

$

0.33

 

$

0.33

 

$

0.27

 

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

 

 

6/30/19

 

3/31/19

 

12/31/18

 

9/30/18

 

6/30/18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

$

803,114

 

$

786,585

 

$

765,244

 

$

757,051

 

$

749,234

 

Allowance for loan losses

 

(8,832

)

 

(8,686

)

 

(8,880

)

 

(8,634

)

 

(8,580

)

Net loans

 

794,282

 

 

777,899

 

 

756,364

 

 

748,417

 

 

740,654

 

Securities available for sale

 

208,614

 

 

206,411

 

 

201,192

 

 

184,870

 

 

178,896

 

Federal funds sold & interest bearing deposits

 

40,755

 

 

24,029

 

 

28,398

 

 

31,761

 

 

33,534

 

Cash and due from financial institutions

 

6,860

 

 

6,461

 

 

6,963

 

 

5,770

 

 

7,013

 

Premises and equipment

 

14,827

 

 

14,926

 

 

14,655

 

 

17,027

 

 

16,813

 

Premises held for sale

 

995

 

 

1,050

 

 

1,050

 

 

 

 

 

Bank owned life insurance

 

15,853

 

 

15,739

 

 

15,646

 

 

15,551

 

 

15,456

 

FHLB Stock

 

6,693

 

 

6,813

 

 

7,233

 

 

7,233

 

 

7,323

 

Other real estate owned

 

3,225

 

 

3,335

 

 

3,485

 

 

3,750

 

 

4,510

 

Deferred taxes, net

 

28,708

 

 

28,568

 

 

29,282

 

 

30,230

 

 

30,623

 

Accrued interest receivable and other assets

 

5,976

 

 

6,092

 

 

5,424

 

 

5,882

 

 

5,699

 

Total Assets

$

1,126,788

 

$

1,091,323

 

$

1,069,692

 

$

1,050,491

 

$

1,040,521

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

$

505,263

 

$

465,369

 

$

450,886

 

$

457,239

 

$

435,454

 

Interest checking

 

95,296

 

 

96,537

 

 

94,269

 

 

87,407

 

 

88,955

 

Money market

 

162,917

 

 

166,430

 

 

171,924

 

 

159,499

 

 

150,048

 

Savings

 

33,553

 

 

34,066

 

 

34,534

 

 

34,320

 

 

35,220

 

Total interest bearing deposits

 

797,029

 

 

762,402

 

 

751,613

 

 

738,465

 

 

709,677

 

Demand deposits

 

141,448

 

 

146,440

 

 

142,618

 

 

135,561

 

 

136,553

 

Total deposits

 

938,477

 

 

908,842

 

 

894,231

 

 

874,026

 

 

846,230

 

FHLB advances

 

51,470

 

 

51,511

 

 

46,549

 

 

51,591

 

 

71,630

 

Junior subordinated debentures

 

21,000

 

 

21,000

 

 

21,000

 

 

21,000

 

 

21,000

 

Senior debt

 

10,000

 

 

10,000

 

 

10,000

 

 

10,000

 

 

10,000

 

Accrued interest payable and other liabilities

 

4,419

 

 

3,651

 

 

5,815

 

 

5,662

 

 

5,262

 

Total liabilities

 

1,025,366

 

 

995,004

 

 

977,595

 

 

962,279

 

 

954,122

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total common stockholders’ equity

 

101,422

 

 

96,319

 

 

92,097

 

 

88,212

 

 

86,399

 

Total Liabilities and Stockholders’ Equity

$

1,126,788

 

$

1,091,323

 

$

1,069,692

 

$

1,050,491

 

$

1,040,521

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending shares outstanding

 

7,457,832

 

 

7,460,614

 

 

7,462,720

 

 

7,456,590

 

 

7,454,993

 

Book value per common share

$

13.60

 

$

12.91

 

$

12.34

 

$

11.83

 

$

11.59

 

Tangible book value per common share

 

13.60

 

 

12.91

 

 

12.34

 

 

11.83

 

 

11.59

 

 
 

LIMESTONE BANCORP, INC.

Unaudited Financial Information

(in thousands, except share and per share data)

 

 

As of

 

 

6/30/19

 

3/31/19

 

12/31/18

 

9/30/18

 

6/30/18

 

Average Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

$

1,100,459

 

$

1,075,553

 

$

1,066,216

 

$

1,037,636

 

$

1,013,008

 

Loans

 

793,460

 

 

766,505

 

 

765,542

 

 

748,444

 

 

734,709

 

Earning assets

 

1,033,581

 

 

1,009,948

 

 

1,001,093

 

 

968,876

 

 

943,023

 

Deposits

 

926,730

 

 

900,829

 

 

895,377

 

 

869,707

 

 

842,757

 

Long-term debt and advances

 

71,989

 

 

76,524

 

 

75,339

 

 

74,994

 

 

76,209

 

Interest bearing liabilities

 

855,100

 

 

834,637

 

 

824,300

 

 

810,917

 

 

783,123

 

Stockholders’ equity

 

97,730

 

 

93,491

 

 

89,836

 

 

87,486

 

 

88,701

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarterly Performance Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.32

%

 

1.07

%

 

0.91

%

 

0.93

%

 

0.79

%

Return on average equity

 

14.91

 

 

12.32

 

 

10.78

 

 

11.05

 

 

8.97

 

Yield on average earning assets (tax equivalent)

 

4.81

 

 

4.90

 

 

4.66

 

 

4.56

 

 

4.51

 

Cost of interest bearing liabilities

 

1.68

 

 

1.57

 

 

1.46

 

 

1.32

 

 

1.13

 

Net interest margin (tax equivalent)

 

3.42

 

 

3.61

 

 

3.46

 

 

3.45

 

 

3.57

 

Efficiency ratio

 

70.47

 

 

71.08

 

 

70.57

 

 

72.88

 

 

76.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

$

2,028

 

$

1,921

 

$

1,991

 

$

2,692

 

$

3,170

 

Troubled debt restructurings on accrual

 

905

 

 

910

 

 

910

 

 

910

 

 

916

 

Loan 90 days or more past due still on accrual

 

 

 

 

 

 

 

 

 

 

Total non-performing loans

 

2,933

 

 

2,831

 

 

2,901

 

 

3,602

 

 

4,086

 

Real estate acquired through foreclosures

 

3,225

 

 

3,335

 

 

3,485

 

 

3,750

 

 

4,510

 

Other repossessed assets

 

 

 

 

 

 

 

 

 

 

Total non-performing assets

$

6,158

 

$

6,166

 

$

6,386

 

$

7,352

 

$

8,596

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans to total loans

 

0.37

%

 

0.36

%

 

0.38

%

 

0.48

%

 

0.55

%

Non-performing assets to total assets

 

0.55

 

 

0.57

 

 

0.60

 

 

0.70

 

 

0.83

 

Allowance for loan losses to non-performing loans

 

301.13

 

 

306.82

 

 

306.10

 

 

239.70

 

 

209.99

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to total loans

 

1.10

%

 

1.10

%

 

1.16

%

 

1.14

%

 

1.15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan Charge-off Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans charged off

$

(72

)

$

(278

)

$

(133

)

$

(143

)

$

(293

)

Recoveries

 

218

 

 

84

 

 

379

 

 

547

 

 

497

 

Net recoveries (charge-offs)

$

146

 

$

(194

)

$

246

 

$

404

 

$

204

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans by Risk Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

767,662

 

$

756,493

 

$

745,604

 

$

736,193

 

$

720,446

 

Watch

 

22,929

 

 

17,412

 

 

13,164

 

 

12,314

 

 

19,091

 

Special Mention

 

 

 

 

 

113

 

 

114

 

 

115

 

Substandard

 

12,523

 

 

12,680

 

 

6,363

 

 

8,430

 

 

9,582

 

Doubtful

 

 

 

 

 

 

 

 

 

 

Total

$

803,114

 

$

786,585

 

$

765,244

 

$

757,051

 

$

749,234

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans by Past Due Status

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past due loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30 – 59 days

$

858

 

$

2,001

 

$

1,593

 

$

1,492

 

$

1,134

 

60 – 89 days

 

1,015

 

 

240

 

 

331

 

 

929

 

 

538

 

90 days or more

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

2,028

 

 

1,921

 

 

1,991

 

 

2,692

 

 

3,170

 

Total past due and nonaccrual loans

$

3,901

 

$

4,162

 

$

3,915

 

$

5,113

 

$

4,842

 

   

LIMESTONE BANCORP, INC.

Unaudited Financial Information

(in thousands, except share and per share data)

   

 

As of

 

 

6/30/19

 

3/31/19

 

12/31/18

 

9/30/18

 

6/30/18

 

Risk-based Capital Ratios - Company

 

 

 

 

 

 

 

 

 

 

Tier I leverage ratio

9.46

%

9.30

%

9.00

%

8.91

%

8.70

%

Common equity Tier I risk-based capital ratio

9.82

 

9.57

 

9.44

 

9.21

 

8.92

 

Tier I risk-based capital ratio

11.56

 

11.29

 

11.08

 

10.83

 

10.41

 

Total risk-based capital ratio

12.56

 

12.32

 

12.23

 

12.07

 

11.76

 

 

 

 

 

 

 

 

 

 

 

 

Risk-based Capital Ratios – Limestone Bank

 

 

 

 

 

 

 

 

 

 

Tier I leverage ratio

10.01

%

9.88

%

9.60

%

9.51

%

9.37

%

Common equity Tier I risk-based capital ratio

12.26

 

12.01

 

11.83

 

11.56

 

11.23

 

Tier I risk-based capital ratio

12.26

 

12.01

 

11.83

 

11.56

 

11.23

 

Total risk-based capital ratio

13.26

 

13.01

 

12.88

 

12.60

 

12.26

 

 

 

 

 

 

 

 

 

 

 

 

FTE employees

219

 

207

 

214

 

215

 

217

 

Non-GAAP Financial Measures Reconciliation
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 net gains on the sale of securities from the calculation. Management believes this provides a reasonable measure of primary banking expenses relative to primary banking revenue.

 

 

Three Months Ended

 

 

6/30/19

 

3/31/19

 

12/31/18

 

9/30/18

 

6/30/18

 

Efficiency Ratio

(in thousands)

 

 

 

 

Net interest income

$

8,800

 

$

8,959

 

$

8,704

 

$

8,412

 

$

8,374

 

Non-interest income

 

1,446

 

 

1,284

 

 

1,672

 

 

1,509

 

 

1,347

 

Less: Net gain (loss) on securities

 

(5)

 

 

 

 

 

 

 

 

(6)

 

Revenue used for efficiency ratio

 

10,251

 

 

10,243

 

 

10,376

 

 

9,921

 

 

9,727

 

Non-interest expense

 

7,224

 

 

7,281

 

 

7,322

 

 

7,230

 

 

7,405

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

70.47

%

 

71.08

%

 

70.57

%

 

72.88

%

 

76.13

%

 
 

 

Six Months Ended

 

 

6/30/19

 

6/30/18

 

Efficiency Ratio

(in thousands)

 

 

 

   

Net interest income

$

17,759

 

$

16,555

 

Non-interest income

 

2,730

 

 

2,598

 

Less: Net gain (loss) on securities

 

(5)

 

(6)

Revenue used for efficiency ratio

 

20,494

 

 

19,159

 

Non-interest expense

 

14,505

 

 

14,574

 

 

 

 

 

 

Efficiency ratio

 

70.78

%

 

76.07

%

   

 

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

Source: Limestone Bancorp, Inc.