Press Release

Limestone Bancorp Reports Net Income of $2.3 Million, or $0.31 Per Diluted Share, for the 3rd Quarter of 2019 and $8.8 Million, or $1.17 Per Diluted Share, for the Nine Months Ended September 30, 2019

Company Release - 10/23/2019 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 third quarter of 2019. Net income available to common shareholders for the third quarter of 2019 was $2.3 million, or $0.31 per basic and diluted common share, compared with $2.4 million, or $0.33 per basic and diluted share, for the third quarter of 2018. Net income for the nine months ended September 30, 2019, was $8.8 million, or $1.17 per diluted common share, compared with net income of $6.4 million, or $0.90 per diluted share, for the nine months ended September 30, 2018.

Net income before taxes was $2.8 million and $8.8 million for the third quarter of 2019 and for the first nine months of 2019, respectively, compared to $3.0 million and $7.8 million for the third quarter and first nine months of 2018, respectively. Income tax expense was $531,000 and $43,000 for the third quarter of 2019 and for the first nine months of 2019, respectively, compared to income tax expense of $604,000 and $1.4 million for the third quarter of 2018 and for the first nine months of 2018, respectively.

Income Taxes – During the first and second quarters of 2019, the Company benefitted from the enactment of state tax legislation eliminating the Kentucky bank franchise tax which is assessed at a rate of 1.1% of average capital. The legislation 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, and the Company will begin filing a Kentucky combined filing in 2021. The enactment resulted in a tax benefit of $341,000, or $0.05 per basic and diluted share in the first quarter of 2019 and $1.2 million, or approximately $0.16 per basic and diluted share in the second quarter of 2019.

Net Interest Income – On a sequential quarter basis, net interest income was under pressure as the Federal Reserve lowered its federal funds target rate by 25 basis points on July 31, 2019 and again by 25 basis points on September 18, 2019. The Company’s interest rate risk profile is marginally asset sensitive as its assets generally reprice more quickly than its liabilities over a twelve-month horizon. In particular, the Fed’s actions served to lower rates on the short end of the yield curve impacting yields on fed funds, certain floating rate investment securities, and loans with variable rate pricing features. As of September 30, 2019, time deposits comprise $488.1 million of the Company’s liabilities with $432.3 million, or 89% set to reprice or mature within one year.

Net interest income decreased to $8.7 million for the third quarter of 2019, compared with $8.8 million in the second quarter of 2019 and increased from $8.4 million in the third quarter of 2018. Average loans increased to $800.2 million for the third quarter of 2019, compared to $793.5 million for the second quarter of 2019 and $748.4 million for the third quarter of 2018. Net interest margin decreased to 3.35% in the third quarter of 2019, compared with 3.42% for the second quarter of 2019 and 3.45% for the third quarter of 2018.

The yield on earning assets decreased to 4.79% for the third quarter of 2019, compared to 4.81% for the second quarter of 2019 and increased from 4.56% in the third 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 $247,000, $167,000, and $140,000 for the quarters ended September 30, 2019, June 30, 2019, and September 30, 2018, respectively. This represents nine basis points, six basis points, and five basis points of yield on earning assets and net interest margin for the quarters ended September 30, 2019, June 30, 2019, and September 30, 2018, respectively. The cost of interest-bearing liabilities was 1.75% for the third quarter of 2019, compared to 1.68% for the second quarter of 2019 and 1.32% for the third quarter of 2018. Net interest income and the cost of interest-bearing liabilities for the third quarter of 2019 were also impacted by the July 23, 2019, subordinated debt issuance of $17.0 million at a fixed rate of 5.75%. This capital will be deployed in the pending branch acquisition transaction announced on July 24, 2019, which is expected to close on or about November 15, 2019.

Net interest income increased to $26.5 million for the first nine months of 2019, compared with $25.0 million in the first nine months of 2018. Average loans increased to $786.8 million for the first nine months of 2019, compared to $735.9 million for the first nine months of 2018. Net interest margin decreased to 3.46% in the first nine months of 2019, compared with 3.55% for the first nine months of 2018.

The yield on earning assets increased to 4.83% for the first nine months of 2019, compared to 4.51% for the first nine months of 2018. The amount of loan fee income included in total interest income was $960,000 and $329,000 for the nine months ended September 30, 2019 and September 30, 2018, respectively. This represents 13 basis points and five basis points of yield on earning assets and net interest margin for the nine months ended September 30, 2019 and 2018, respectively. The cost of interest-bearing liabilities was 1.67% for the first nine months of 2019, compared to 1.14% in the first nine months of 2018.

Provision and Allowance for Loan Losses – The allowance for loan losses to total loans was 1.11% at September 30, 2019, compared to 1.10% at June 30, 2019, and 1.14% at September 30, 2018. Net loan recoveries were $72,000 and $24,000, respectively, for the three and nine months ended September 30, 2019, compared to net loan recoveries of $404,000 and $932,000, respectively, for the three and nine months ended September 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 nine months ended September 30, 2019, compared to a negative provision for loan losses of $350,000 and $500,000, or $0.04 and $0.06 per dilute share, for the three and nine months ended September 30, 2018, respectively.

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”), decreased to $5.8 million, or 0.51% of total assets, at September 30, 2019, compared with $6.2 million, or 0.55% of total assets, at June 30, 2019, and decreased compared to $7.4 million, or 0.70% of total assets, at September 30, 2018. Non-performing loans decreased to $2.6 million, or 0.32% of total loans, at September 30, 2019, compared with $2.9 million, or 0.37% of total loans, at June 30, 2019, and decreased from $3.6 million, or 0.48% of total loans, at September 30, 2018.

OREO remained unchanged at $3.2 million at September 30, 2019, compared to June 30, 2019, and decreased compared to $3.8 million at September 30, 2018. There were no fair value write-downs during the third quarter of 2019 and $260,000 for the nine months ended September 30, 2019, compared to $260,000 and $585,000 for the three and nine months ended September 30, 2018, respectively.

Non-interest Income and Expense – Non-interest income for the first nine months of 2019 increased $157,000 to $4.3 million, compared with $4.1 million for the first nine months of 2018. The increase was primarily due to an increase in bank card interchange fees of $469,000 partially offset by a decrease in other non-interest income of $150,000 related to the one-time gain on the sale of the secondary market residential servicing rights portfolio. Non-interest expense increased $152,000, or 0.7% to $22.0 million for the first nine months of 2019, compared with $21.8 million for the first nine months of 2018. The increase was primarily due to increases of $466,000 in salary and employee benefits, as the Bank added sales talent and customer facing associates during the second and third quarters of 2019, and $238,000 in deposit account related expense partially offset by decreases in OREO expenses of $257,000, and FDIC insurance expense of $228,000.

Non-interest income for the third quarter of 2019 increased $25,000 to $1.5 million, compared with $1.5 million for the third quarter of 2018. The increase from the third quarter of 2018 was primarily due to an increase in bank card interchange fees of $212,000 partially offset by a decrease in other non-interest income of $150,000 related to a one-time gain on the sale of the Bank’s fully amortized secondary market residential mortgage servicing rights portfolio during the third quarter of 2018. Non-interest expense increased $221,000, or 3.1% to $7.5 million for the third quarter of 2019, compared with $7.2 million for the third quarter of 2018. The increase from the third quarter of 2018 was primarily due to an increase of $309,000 in salaries and employee benefits.

Capital – At September 30, 2019, the Bank’s Tier 1 leverage ratio was 11.25%, compared with 10.01% at June 30, 2019, and its Total risk-based capital ratio was 14.89% at September 30, 2019, compared with 13.26% at June 30, 2019. At September 30, 2019, the Bank’s Common equity Tier 1 risk-based capital ratio was 13.87%, compared with 12.26% at June 30, 2019. At September 30, 2019, the Company’s Tier 1 leverage ratio was 9.66%, compared with 9.46% at June 30, 2019, and its Total risk-based capital ratio was 14.84%, compared with 12.56% at June 30, 2019. At September 30, 2019, the Company’s Common equity Tier 1 risk-based capital ratio was 10.19%, compared with 9.82% at June 30, 2019.

The Company’s capital ratios were positively impacted by the $17.0 million of subordinated notes issued during the third quarter, as the subordinated notes meet the requirements to qualify as Tier 2 capital. The Bank’s capital ratios also benefitted as the Company contributed $10.0 million of the proceeds to the Bank as Common Equity Tier 1 Capital.

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 third quarter ending September 30, 2019, follows.

 

LIMESTONE BANCORP, INC.

Unaudited Financial Information

(in thousands, except share and per share data)

 

 

Three

 

Three

 

Nine

 

Nine

 

 

Months

 

Months

 

Months

 

Months

 

 

Ended

 

Ended

 

Ended

 

Ended

 

 

9/30/19

 

9/30/18

 

9/30/19

 

9/30/18

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement Data

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

12,485

 

$

11,120

 

$

37,047

 

$

31,720

 

Interest expense

 

3,755

 

 

2,708

 

 

10,558

 

 

6,753

 

Net interest income

 

8,730

 

 

8,412

 

 

26,489

 

 

24,967

 

Provision (negative provision) for loan losses

 

 

 

(350

)

 

 

 

(500

)

Net interest income after provision

 

8,730

 

 

8,762

 

 

26,489

 

 

25,467

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

633

 

 

608

 

 

1,700

 

 

1,767

 

Bank card interchange fees

 

623

 

 

411

 

 

1,727

 

 

1,258

 

Bank owned life insurance income

 

97

 

 

100

 

 

314

 

 

337

 

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

 

 

 

 

 

(5

)

 

(6

)

Other

 

181

 

 

390

 

 

528

 

 

751

 

Non-interest income

 

1,534

 

 

1,509

 

 

4,264

 

 

4,107

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries & employee benefits

 

4,202

 

 

3,893

 

 

12,032

 

 

11,566

 

Occupancy and equipment

 

880

 

 

896

 

 

2,632

 

 

2,671

 

Professional fees

 

254

 

 

186

 

 

598

 

 

613

 

Marketing expense

 

251

 

 

259

 

 

690

 

 

867

 

FDIC insurance

 

 

 

118

 

 

211

 

 

439

 

Data processing expense

 

315

 

 

281

 

 

943

 

 

912

 

State franchise and deposit tax

 

315

 

 

282

 

 

945

 

 

846

 

Deposit account related expense

 

300

 

 

213

 

 

891

 

 

653

 

Other real estate owned expense

 

25

 

 

271

 

 

333

 

 

590

 

Litigation and loan collection expense

 

32

 

 

61

 

 

112

 

 

162

 

Other

 

877

 

 

770

 

 

2,569

 

 

2,485

 

Non-interest expense

 

7,451

 

 

7,230

 

 

21,956

 

 

21,804

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

2,813

 

 

3,041

 

 

8,797

 

 

7,770

 

Income tax expense

 

531

 

 

604

 

 

43

 

 

1,416

 

Net income

$

2,282

 

$

2,437

 

$

8,754

 

$

6,354

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares – Basic

 

7,471,582

 

 

7,455,316

 

 

7,467,048

 

 

7,059,472

 

Weighted average shares – Diluted

 

7,471,582

 

 

7,455,316

 

 

7,467,048

 

 

7,059,472

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.31

 

$

0.33

 

$

1.17

 

$

0.90

 

Diluted earnings per common share

$

0.31

 

$

0.33

 

$

1.17

 

$

0.90

 

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

 

 

9/30/19

 

6/30/19

 

3/31/19

 

12/31/18

 

9/30/18

 

Income Statement Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

12,485

 

$

12,376

 

$

12,186

 

$

11,741

 

$

11,120

 

Interest expense

 

3,755

 

 

3,576

 

 

3,227

 

 

3,037

 

 

2,708

 

Net interest income

 

8,730

 

 

8,800

 

 

8,959

 

 

8,704

 

 

8,412

 

Provision (negative provision) for loan losses

 

 

 

 

 

 

 

 

 

(350

)

Net interest income after provision

 

8,730

 

 

8,800

 

 

8,959

 

 

8,704

 

 

8,762

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

633

 

 

571

 

 

496

 

 

588

 

 

608

 

Bank card interchange fees

 

623

 

 

596

 

 

508

 

 

573

 

 

411

 

Bank owned life insurance income

 

97

 

 

118

 

 

99

 

 

100

 

 

100

 

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

 

 

 

(5

)

 

 

 

 

 

 

Other

 

181

 

 

166

 

 

181

 

 

411

 

 

390

 

Non-interest income

 

1,534

 

 

1,446

 

 

1,284

 

 

1,672

 

 

1,509

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries & employee benefits

 

4,202

 

 

3,915

 

 

3,915

 

 

3,923

 

 

3,893

 

Occupancy and equipment

 

880

 

 

854

 

 

898

 

 

915

 

 

896

 

Professional fees

 

254

 

 

179

 

 

165

 

 

201

 

 

186

 

Marketing expense

 

251

 

 

212

 

 

227

 

 

247

 

 

259

 

FDIC insurance

 

 

 

103

 

 

108

 

 

118

 

 

118

 

Data processing expense

 

315

 

 

315

 

 

313

 

 

280

 

 

281

 

State franchise and deposit tax

 

315

 

 

315

 

 

315

 

 

272

 

 

282

 

Deposit account related expense

 

300

 

 

310

 

 

281

 

 

170

 

 

213

 

Other real estate owned expense

 

25

 

 

142

 

 

166

 

 

278

 

 

271

 

Litigation and loan collection expense

 

32

 

 

34

 

 

46

 

 

83

 

 

61

 

Other

 

877

 

 

845

 

 

847

 

 

835

 

 

770

 

Non-interest expense

 

7,451

 

 

7,224

 

 

7,281

 

 

7,322

 

 

7,230

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

2,813

 

 

3,022

 

 

2,962

 

 

3,054

 

 

3,041

 

Income tax expense (benefit)

 

531

 

 

(611

)

 

123

 

 

614

 

 

604

 

Net income

$

2,282

 

$

3,633

 

$

2,839

 

$

2,440

 

$

2,437

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares – Basic

 

7,471,582

 

 

7,459,631

 

 

7,469,912

 

 

7,457,206

 

 

7,455,316

 

Weighted average shares – Diluted

 

7,471,582

 

 

7,459,631

 

 

7,469,912

 

 

7,457,206

 

 

7,455,316

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.31

 

$

0.49

 

$

0.38

 

$

0.33

 

$

0.33

 

Diluted earnings per common share

$

0.31

 

$

0.49

 

$

0.38

 

$

0.33

 

$

0.33

 

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

 

 

 

9/30/19

 

6/30/19

 

3/31/19

 

 

12/31/18

 

 

9/30/18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

$

803,569

 

$

803,114

 

$

786,585

 

$

765,244

 

$

757,051

 

 

 

 

Allowance for loan losses

 

(8,904

)

 

(8,832

)

 

(8,686

)

 

(8,880

)

 

(8,634

)

 

 

 

Net loans

 

794,665

 

 

794,282

 

 

777,899

 

 

756,364

 

 

748,417

 

 

 

 

Securities available for sale

 

203,381

 

 

208,614

 

 

206,411

 

 

201,192

 

 

184,870

 

 

 

 

Federal funds sold & interest bearing deposits

 

50,327

 

 

40,755

 

 

24,029

 

 

28,398

 

 

31,761

 

 

 

 

Cash and due from financial institutions

 

7,680

 

 

6,860

 

 

6,461

 

 

6,963

 

 

5,770

 

 

 

 

Premises and equipment

 

15,098

 

 

14,827

 

 

14,926

 

 

14,655

 

 

17,027

 

 

 

 

Premises held for sale

 

935

 

 

995

 

 

1,050

 

 

1,050

 

 

 

 

 

 

Bank owned life insurance

 

15,946

 

 

15,853

 

 

15,739

 

 

15,646

 

 

15,551

 

 

 

 

FHLB Stock

 

6,467

 

 

6,693

 

 

6,813

 

 

7,233

 

 

7,233

 

 

 

 

Other real estate owned

 

3,225

 

 

3,225

 

 

3,335

 

 

3,485

 

 

3,750

 

 

 

 

Deferred taxes, net

 

28,029

 

 

28,708

 

 

28,568

 

 

29,282

 

 

30,230

 

 

 

 

Accrued interest receivable and other assets

 

6,411

 

 

5,976

 

 

6,092

 

 

5,424

 

 

5,882

 

 

 

 

Total Assets

$

1,132,164

 

$

1,126,788

 

$

1,091,323

 

$

1,069,692

 

$

1,050,491

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

$

488,121

 

$

505,263

 

$

465,369

 

$

450,886

 

$

457,239

 

 

 

 

Interest checking

 

95,508

 

 

95,296

 

 

96,537

 

 

94,269

 

 

87,407

 

 

 

 

Money market

 

153,663

 

 

162,917

 

 

166,430

 

 

171,924

 

 

159,499

 

 

 

 

Savings

 

34,618

 

 

33,553

 

 

34,066

 

 

34,534

 

 

34,320

 

 

 

 

Total interest bearing deposits

 

771,910

 

 

797,029

 

 

762,402

 

 

751,613

 

 

738,465

 

 

 

 

Demand deposits

 

151,524

 

 

141,448

 

 

146,440

 

 

142,618

 

 

135,561

 

 

 

 

Total deposits

 

923,434

 

 

938,477

 

 

908,842

 

 

894,231

 

 

874,026

 

 

 

 

FHLB advances

 

56,430

 

 

51,470

 

 

51,511

 

 

46,549

 

 

51,591

 

 

 

 

Junior subordinated debentures

 

21,000

 

 

21,000

 

 

21,000

 

 

21,000

 

 

21,000

 

 

 

 

Subordinated capital note

 

17,000

 

 

 

 

 

 

 

 

 

 

 

 

Senior debt

 

5,000

 

 

10,000

 

 

10,000

 

 

10,000

 

 

10,000

 

 

 

 

Accrued interest payable and other liabilities

 

4,973

 

 

4,419

 

 

3,651

 

 

5,815

 

 

5,662

 

 

 

 

Total liabilities

 

1,027,837

 

 

1,025,366

 

 

995,004

 

 

977,595

 

 

962,279

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total common stockholders’ equity

 

104,327

 

 

101,422

 

 

96,319

 

 

92,097

 

 

88,212

 

 

 

 

Total Liabilities and Stockholders’ Equity

$

1,132,164

 

$

1,126,788

 

$

1,091,323

 

$

1,069,692

 

$

1,050,491

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending shares outstanding

 

7,471,582

 

 

7,457,832

 

 

7,460,614

 

 

7,462,720

 

 

7,456,590

 

 

 

 

Book value per common share

$

13.96

 

$

13.60

 

$

12.91

 

$

12.34

 

$

11.83

 

 

 

 

Tangible book value per common share

 

13.96

 

 

13.60

 

 

12.91

 

 

12.34

 

 

11.83

 

 

 

 

 

LIMESTONE BANCORP, INC.

Unaudited Financial Information

(in thousands, except share and per share data)

 

 

 

As of

 

 

 

9/30/19

 

 

6/30/19

 

 

3/31/19

 

 

12/31/18

 

 

9/30/18

 

 

 

 

Average Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

$

1,105,432

 

$

1,100,459

 

$

1,075,553

 

$

1,066,216

 

$

1,037,636

 

 

 

 

Loans

 

800,194

 

 

793,460

 

 

766,505

 

 

765,542

 

 

748,444

 

 

 

 

Earning assets

 

1,035,522

 

 

1,033,581

 

 

1,009,948

 

 

1,001,093

 

 

968,876

 

 

 

 

Deposits

 

933,548

 

 

926,730

 

 

900,829

 

 

895,377

 

 

869,707

 

 

 

 

Long-term debt and advances

 

63,369

 

 

71,989

 

 

76,524

 

 

75,339

 

 

74,994

 

 

 

 

Interest bearing liabilities

 

852,539

 

 

855,100

 

 

834,637

 

 

824,300

 

 

810,917

 

 

 

 

Stockholders’ equity

 

103,818

 

 

97,730

 

 

93,491

 

 

89,836

 

 

87,486

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarterly Performance Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

0.82

%

 

1.32

%

 

1.07

%

 

0.91

%

 

0.93

%

 

 

 

Return on average equity

 

8.72

 

 

14.91

 

 

12.32

 

 

10.78

 

 

11.05

 

 

 

 

Yield on average earning assets (tax equivalent)

 

4.79

 

 

4.81

 

 

4.90

 

 

4.66

 

 

4.56

 

 

 

 

Cost of interest bearing liabilities

 

1.75

 

 

1.68

 

 

1.57

 

 

1.46

 

 

1.32

 

 

 

 

Net interest margin (tax equivalent)

 

3.35

 

 

3.42

 

 

3.61

 

 

3.46

 

 

3.45

 

 

 

 

Efficiency ratio

 

72.59

 

 

70.47

 

 

71.08

 

 

70.57

 

 

72.88

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

$

2,389

 

$

2,028

 

$

1,921

 

$

1,991

 

$

2,692

 

 

 

 

Troubled debt restructurings on accrual

 

188

 

 

905

 

 

910

 

 

910

 

 

910

 

 

 

 

Loan 90 days or more past due still on accrual

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing loans

 

2,577

 

 

2,933

 

 

2,831

 

 

2,901

 

 

3,602

 

 

 

 

Real estate acquired through foreclosures

 

3,225

 

 

3,225

 

 

3,335

 

 

3,485

 

 

3,750

 

 

 

 

Other repossessed assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing assets

$

5,802

 

$

6,158

 

$

6,166

 

$

6,386

 

$

7,352

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans to total loans

 

0.32

%

 

0.37

%

 

0.36

%

 

0.38

%

 

0.48

%

 

 

 

Non-performing assets to total assets

 

0.51

 

 

0.55

 

 

0.57

 

 

0.60

 

 

0.70

 

 

 

 

Allowance for loan losses to non-performing loans

 

345.52

 

 

301.13

 

 

306.82

 

 

306.10

 

 

239.70

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to total loans

 

1.11

%

 

1.10

%

 

1.10

%

 

1.16

%

 

1.14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan Charge-off Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans charged off

$

(299

)

$

(72

)

$

(278

)

$

(133

)

$

(143

)

 

 

 

Recoveries

 

371

 

 

218

 

 

84

 

 

379

 

 

547

 

 

 

 

Net recoveries (charge-offs)

$

72

 

$

146

 

$

(194

)

$

246

 

$

404

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans by Risk Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

754,050

 

$

767,662

 

$

756,493

 

$

745,604

 

$

736,193

 

 

 

 

Watch

 

37,537

 

 

22,929

 

 

17,412

 

 

13,164

 

 

12,314

 

 

 

 

Special Mention

 

 

 

 

 

 

 

113

 

 

114

 

 

 

 

Substandard

 

11,982

 

 

12,523

 

 

12,680

 

 

6,363

 

 

8,430

 

 

 

 

Doubtful

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

803,569

 

$

803,114

 

$

786,585

 

$

765,244

 

$

757,051

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans by Past Due Status

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past due loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30 – 59 days

$

979

 

$

858

 

$

2,001

 

$

1,593

 

$

1,492

 

 

 

 

60 – 89 days

 

557

 

 

1,015

 

 

240

 

 

331

 

 

929

 

 

 

 

90 days or more

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

2,389

 

 

2,028

 

 

1,921

 

 

1,991

 

 

2,692

 

 

 

 

Total past due and nonaccrual loans

$

3,925

 

$

3,901

 

$

4,162

 

$

3,915

 

$

5,113

 

 

 

 

 

LIMESTONE BANCORP, INC.

Unaudited Financial Information

(in thousands, except share and per share data)

 

 

 

As of

 

 

9/30/19

 

 

6/30/19

 

 

3/31/19

 

 

12/31/18

 

 

9/30/18

 

 

 

 

Risk-based Capital Ratios - Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier I leverage ratio

 

9.66

%

 

9.46

%

 

9.30

%

 

9.00

%

 

8.91

%

 

 

 

Common equity Tier I risk-based capital ratio

 

10.19

 

 

9.82

 

 

9.57

 

 

9.44

 

 

9.21

 

 

 

 

Tier I risk-based capital ratio

 

11.88

 

 

11.56

 

 

11.29

 

 

11.08

 

 

10.83

 

 

 

 

Total risk-based capital ratio

 

14.84

 

 

12.56

 

 

12.32

 

 

12.23

 

 

12.07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk-based Capital Ratios – Limestone Bank

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier I leverage ratio

 

11.25

%

 

10.01

%

 

9.88

%

 

9.60

%

 

9.51

%

 

 

 

Common equity Tier I risk-based capital ratio

 

13.87

 

 

12.26

 

 

12.01

 

 

11.83

 

 

11.56

 

 

 

 

Tier I risk-based capital ratio

 

13.87

 

 

12.26

 

 

12.01

 

 

11.83

 

 

11.56

 

 

 

 

Total risk-based capital ratio

 

14.89

 

 

13.26

 

 

13.01

 

 

12.88

 

 

12.60

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FTE employees

 

226

 

 

219

 

 

207

 

 

214

 

 

215

 

 

 

 

 

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

 

 

9/30/19

 

 

6/30/19

 

 

3/31/19

 

 

12/31/18

 

 

9/30/18

 

Efficiency Ratio

(in thousands)

 

 

 

 

Net interest income

$

8,730

 

$

8,800

 

$

8,959

 

$

8,704

 

$

8,412

 

Non-interest income

 

1,534

 

 

1,446

 

 

1,284

 

 

1,672

 

 

1,509

 

Less: Net gain (loss) on securities

 

 

 

(5)

 

 

 

 

 

 

 

Revenue used for efficiency ratio

 

10,264

 

 

10,251

 

 

10,243

 

 

10,376

 

 

9,921

 

Non-interest expense

 

7,451

 

 

7,224

 

 

7,281

 

 

7,322

 

 

7,230

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

72.59

%

 

70.47

%

 

71.08

%

 

70.57

%

 

72.88

%

 

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

Source: Limestone Bancorp, Inc.