|
|
|
(State or other jurisdiction of incorporation or organization)
|
(Commission file number)
|
(I.R.S. employer identification no.)
|
(Address of principal executive offices)
|
(Zip code)
|
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))
|
Emerging growth company
|
|
Title of each class
|
Trading Symbol(s)
|
Name of exchange on which registered
|
|||
|
|
|
Item 2.02 |
Results of Operations and Financial Condition.
|
Item 9.01 |
Financial Statements and Exhibits.
|
(d) |
Exhibits
|
Exhibit No.
|
Description
|
Press Release dated January 25, 2023
|
DATE: January 25, 2023
|
FINWISE BANCORP
|
/s/ Javvis Jacobson
|
|
Name: Javvis Jacobson
|
|
Title: Chief Financial Officer and Executive Vice President
|
• |
Loan originations were $1.2 billion, compared to $1.5 billion for the quarter ended September 30, 2022, and $2.3 billion for the fourth quarter of the prior year
|
• |
Net interest income was $12.6 million for the quarter ended December 31, 2022, compared to $12.5 million for the quarter ended September 30, 2022, and $15.3 million for the fourth quarter of the
prior year
|
• |
Net Income was $6.5 million, compared to $3.7 million for the quarter ended September 30, 2022, and $10.1 million for the fourth quarter of the prior year
|
• |
Diluted earnings per share (“EPS”) were $0.49 for the quarter, compared to $0.27 for the quarter ended September 30, 2022, and $0.90 for the quarter ended December 31, 2021
|
• |
Efficiency ratio was 45.6%, compared to 42.3% for the quarter ended September 30, 2022, and 34.3% for the fourth quarter of the prior year
|
• |
Maintained strong returns with annualized return on average equity (ROAE) of 19.1%, compared to 11.0% in the quarter ended September 30, 2022, and 43.8% in the fourth quarter of the prior year
|
• |
Asset quality remained solid with a non-performing loans to total loans ratio of 0.1%
|
For the Three Months Ended
|
For the Years Ended
|
|||||||||||||||||||
($s in thousands, except per share amounts, annualized ratios)
|
12/31/2022
|
9/30/2022
|
12/31/2021
|
12/31/2022
|
12/31/2021
|
|||||||||||||||
Net Income
|
$ |
6,545
|
$ |
3,654
|
$ |
10,111
|
$ |
25,115
|
$ |
31,583
|
||||||||||
Diluted EPS
|
$
|
0.49
|
$
|
0.27
|
$
|
0.90
|
$
|
1.87
|
$
|
3.27
|
||||||||||
Return on average assets
|
6.6
|
%
|
3.9
|
%
|
11.3
|
%
|
6.4
|
%
|
9.1
|
%
|
||||||||||
Return on average equity
|
19.1
|
%
|
11.0
|
%
|
43.8
|
%
|
19.6
|
%
|
39.2
|
%
|
||||||||||
Yield on loans
|
19.04
|
%
|
18.94
|
%
|
21.62
|
%
|
18.52
|
%
|
19.01
|
%
|
||||||||||
Cost of deposits
|
1.98
|
%
|
1.16
|
%
|
0.75
|
%
|
1.17
|
%
|
1.05
|
%
|
||||||||||
Net interest margin
|
14.27
|
%
|
14.93
|
%
|
16.62
|
%
|
14.04
|
%
|
15.10
|
%
|
||||||||||
Efficiency Ratio (1)
|
45.6
|
%
|
42.3
|
%
|
34.3
|
%
|
43.9
|
%
|
37.0
|
%
|
||||||||||
Tangible book value per share (2)
|
$
|
10.95
|
$
|
10.44
|
$
|
9.04
|
$
|
10.95
|
$
|
9.04
|
||||||||||
Tangible shareholders’ equity to tangible assets (2)
|
34.9
|
%
|
34.8
|
%
|
30.4
|
%
|
34.9
|
%
|
30.4
|
%
|
||||||||||
Leverage Ratio (Bank under CBLR)
|
25.1
|
%
|
24.9
|
%
|
17.7
|
%
|
25.1
|
%
|
17.7
|
%
|
|
For the Three Months Ended
|
|||||||||||
($s in thousands)
|
12/31/2022
|
9/30/2022
|
12/31/2021
|
|||||||||
Noninterest income:
|
||||||||||||
Strategic Program fees
|
$
|
4,487
|
$
|
5,136
|
$
|
6,082
|
||||||
Gain on sale of loans
|
4,163
|
1,923
|
1,813
|
|||||||||
SBA loan servicing fees
|
547
|
327
|
356
|
|||||||||
Change in fair value on investment in BFG
|
430
|
65
|
864
|
|||||||||
Other miscellaneous income
|
148
|
72
|
14
|
|||||||||
Total noninterest income
|
$
|
9,775
|
$
|
7,523
|
$
|
9,129
|
For the Three Months Ended
|
||||||||||||
($s in thousands)
|
12/31/2022
|
9/30/2022
|
12/31/2021
|
|||||||||
Noninterest expense:
|
||||||||||||
Salaries and employee benefits
|
$
|
5,805
|
$
|
5,137
|
$
|
6,052
|
||||||
Professional Services
|
1,609
|
1,701
|
287
|
|||||||||
Occupancy and equipment expenses
|
843
|
640
|
208
|
|||||||||
(Recovery) impairment of SBA servicing asset
|
779
|
(127
|
)
|
800
|
||||||||
Other operating expenses
|
1,184
|
1,118
|
1,024
|
|||||||||
Total noninterest expense
|
$
|
10,220
|
$
|
8,469
|
$
|
8,371
|
As of
|
||||||||||||||||||||||||
|
12/31/2022
|
9/30/2022
|
12/31/2021
|
|||||||||||||||||||||
($s in thousands)
|
Amount
|
% of total loans
|
Amount
|
% of total loans
|
Amount
|
% of total loans
|
||||||||||||||||||
SBA
|
$
|
145,172
|
55.8
|
%
|
$
|
127,455
|
49.6
|
%
|
$
|
142,392
|
53.6
|
%
|
||||||||||||
Commercial, non real estate
|
11,484
|
4.4
|
%
|
12,970
|
5.1
|
%
|
3,428
|
1.3
|
%
|
|||||||||||||||
Residential real estate
|
37,815
|
14.5
|
%
|
34,501
|
13.4
|
%
|
27,108
|
10.2
|
%
|
|||||||||||||||
Strategic Program loans
|
47,848
|
18.4
|
%
|
70,290
|
27.4
|
%
|
85,850
|
32.3
|
%
|
|||||||||||||||
Commercial real estate
|
12,063
|
4.7
|
%
|
6,149
|
2.4
|
%
|
2,436
|
0.9
|
%
|
|||||||||||||||
Consumer
|
5,808
|
2.2
|
%
|
5,455
|
2.1
|
%
|
4,574
|
1.7
|
%
|
|||||||||||||||
Total period end loans
|
$
|
260,190
|
100.0
|
%
|
$
|
256,820
|
100.0
|
%
|
$
|
265,788
|
100.0
|
%
|
As of
|
||||||||||||||||||||||||
|
12/31/2022
|
9/30/2022
|
12/31/2021
|
|||||||||||||||||||||
($s in thousands)
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||||||||
Noninterest-bearing demand deposits
|
$
|
78,817
|
32.5
|
%
|
$
|
97,654
|
42.0
|
%
|
$
|
110,548
|
43.9
|
%
|
||||||||||||
Interest-bearing deposits:
|
||||||||||||||||||||||||
Demand
|
50,746
|
20.8
|
%
|
55,152
|
23.6
|
%
|
5,399
|
2.1
|
%
|
|||||||||||||||
Savings
|
8,289
|
3.4
|
%
|
7,252
|
3.1
|
%
|
6,685
|
2.7
|
%
|
|||||||||||||||
Money market
|
10,882
|
4.5
|
%
|
12,281
|
5.3
|
%
|
31,076
|
12.3
|
%
|
|||||||||||||||
Time certificates of deposit
|
94,264
|
38.8
|
%
|
60,499
|
26.0
|
%
|
98,184
|
39.0
|
%
|
|||||||||||||||
Total period end deposits
|
$
|
242,998
|
100.0
|
%
|
$
|
232,838
|
100.0
|
%
|
$
|
251,892
|
100.0
|
%
|
|
As of
|
2022
|
2021
|
|||||||||||||||||
Capital Ratios
|
12/31/2022
|
9/30/2022
|
12/31/2021
|
Well-
Capitalized
Requirement
|
Well-
Capitalized
Requirement
|
|||||||||||||||
Leverage Ratio
|
25.1
|
%
|
24.9
|
%
|
17.7
|
%
|
9.0
|
%
|
8.5
|
%
|
For the Three Months Ended
|
||||||||||||
($s in thousands)
|
12/31/2022
|
9/30/2022
|
12/31/2021
|
|||||||||
Allowance for Loan and Lease Losses:
|
||||||||||||
Beginning Balance
|
$
|
11,968
|
$
|
10,602
|
$
|
9,640
|
||||||
Provision
|
3,202
|
4,457
|
2,503
|
|||||||||
Charge offs
|
||||||||||||
SBA
|
—
|
(259
|
)
|
(99
|
)
|
|||||||
Commercial, non real estate
|
—
|
—
|
—
|
|||||||||
Residential real estate
|
—
|
—
|
—
|
|||||||||
Strategic Program loans
|
(3,440
|
)
|
(3,070
|
)
|
(2,380
|
)
|
||||||
Commercial real estate
|
—
|
—
|
—
|
|||||||||
Consumer
|
(62
|
)
|
(4
|
)
|
(1
|
)
|
||||||
Recoveries
|
||||||||||||
SBA
|
9
|
9
|
5
|
|||||||||
Commercial, non real estate
|
—
|
—
|
11
|
|||||||||
Residential real estate
|
—
|
—
|
—
|
|||||||||
Strategic Program loans
|
244
|
233
|
176
|
|||||||||
Commercial real estate
|
—
|
—
|
—
|
|||||||||
Consumer
|
64
|
—
|
—
|
|||||||||
Ending Balance
|
$
|
11,985
|
$
|
11,968
|
$
|
9,855
|
Asset Quality Ratios
|
As of and For the Three Months Ended
|
|||||||||||
($s in thousands, annualized ratios)
|
12/31/2022
|
9/30/2022
|
12/31/2021
|
|||||||||
Nonperforming loans
|
$
|
356
|
$
|
—
|
$
|
657
|
||||||
Nonperforming loans to total loans
|
0.1
|
%
|
0.0
|
%
|
0.2
|
%
|
||||||
Net charge offs to average loans
|
4.9
|
%
|
4.7
|
%
|
3.2
|
%
|
||||||
Allowance for loan losses to loans held for investment
|
5.1
|
%
|
5.6
|
%
|
4.8
|
%
|
||||||
Allowance for loan losses to total loans
|
4.6
|
%
|
4.7
|
%
|
3.7
|
%
|
||||||
Net charge offs
|
$
|
3,185
|
$
|
3,091
|
$
|
2,288
|
|
As of
|
|||||||||||
12/31/2022
|
9/30/2022
|
12/31/2021
|
||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||
ASSETS
|
||||||||||||
Cash and cash equivalents
|
||||||||||||
Cash and due from banks
|
$
|
386
|
$
|
410
|
$
|
411
|
||||||
Interest-bearing deposits
|
100,181
|
92,053
|
85,343
|
|||||||||
Total cash and cash equivalents
|
100,567
|
92,463
|
85,754
|
|||||||||
Investment securities held-to-maturity, at cost
|
14,292
|
13,925
|
11,423
|
|||||||||
Investment in Federal Home Loan Bank (FHLB) stock, at cost
|
449
|
449
|
378
|
|||||||||
Strategic Program loans held-for-sale, at lower of cost or fair value
|
23,589
|
43,606
|
60,748
|
|||||||||
Loans receivable, net
|
224,217
|
200,485
|
198,102
|
|||||||||
Premises and equipment, net
|
9,478
|
6,830
|
3,285
|
|||||||||
Accrued interest receivable
|
1,818
|
1,672
|
1,548
|
|||||||||
Deferred taxes, net
|
1,167
|
2,164
|
1,823
|
|||||||||
SBA servicing asset, net
|
5,210
|
5,269
|
3,938
|
|||||||||
Investment in Business Funding Group (BFG), at fair value
|
4,800
|
4,500
|
5,900
|
|||||||||
Operating lease right-of-use (“ROU”) assets
|
6,470
|
6,691
|
—
|
|||||||||
Other assets
|
10,152
|
7,515
|
7,315
|
|||||||||
Total assets
|
$
|
402,209
|
$
|
385,569
|
$
|
380,214
|
||||||
|
||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||||||
Liabilities
|
||||||||||||
Deposits
|
||||||||||||
Noninterest-bearing
|
$
|
78,817
|
$
|
97,654
|
$
|
110,548
|
||||||
Interest-bearing
|
164,181
|
135,184
|
141,344
|
|||||||||
Total deposits
|
242,998
|
232,838
|
251,892
|
|||||||||
Accrued interest payable
|
54
|
30
|
48
|
|||||||||
Income taxes payable, net
|
1,077
|
1,066
|
233
|
|||||||||
PPP Liquidity Facility
|
314
|
345
|
1,050
|
|||||||||
Operating lease liabilities
|
8,449
|
7,249
|
—
|
|||||||||
Other liabilities
|
8,858
|
9,756
|
11,549
|
|||||||||
Total liabilities
|
261,750
|
251,284
|
264,772
|
|||||||||
|
||||||||||||
Shareholders’ equity
|
||||||||||||
Common Stock
|
13
|
13
|
13
|
|||||||||
Additional paid-in-capital
|
54,614
|
55,113
|
54,836
|
|||||||||
Retained earnings
|
85,832
|
79,159
|
60,593
|
|||||||||
Total shareholders’ equity
|
140,459
|
134,285
|
115,442
|
|||||||||
Total liabilities and shareholders’ equity
|
$
|
402,209
|
$
|
385,569
|
$
|
380,214
|
For the Three Months Ended
|
||||||||||||
12/31/2022
|
9/30/2022
|
12/31/2021
|
||||||||||
Interest income
|
||||||||||||
Interest and fees on loans
|
$
|
12,440
|
$
|
12,481
|
$
|
15,500
|
||||||
Interest on securities
|
73
|
52
|
28
|
|||||||||
Other interest income
|
757
|
290
|
25
|
|||||||||
Total interest income
|
13,270
|
12,823
|
15,553
|
|||||||||
Interest expense
|
||||||||||||
Interest on deposits
|
624
|
303
|
279
|
|||||||||
Interest on PPP Liquidity Facility
|
—
|
1
|
2
|
|||||||||
Total interest expense
|
624
|
304
|
281
|
|||||||||
Net interest income
|
12,646
|
12,519
|
15,272
|
|||||||||
Provision for loan losses
|
3,202
|
4,457
|
2,503
|
|||||||||
Net interest income after provision for loan losses
|
9,444
|
8,062
|
12,769
|
|||||||||
Non-interest income
|
||||||||||||
Strategic Program fees
|
4,487
|
5,136
|
6,082
|
|||||||||
Gain on sale of loans, net
|
4,163
|
1,923
|
1,813
|
|||||||||
SBA loan servicing fees
|
547
|
327
|
356
|
|||||||||
Change in fair value on investment in BFG
|
430
|
65
|
864
|
|||||||||
Other miscellaneous income
|
148
|
72
|
14
|
|||||||||
Total non-interest income
|
9,775
|
7,523
|
9,129
|
|||||||||
Non-interest expense
|
||||||||||||
Salaries and employee benefits
|
5,805
|
5,137
|
6,052
|
|||||||||
Professional services
|
1,609
|
1,701
|
287
|
|||||||||
Occupancy and equipment expenses
|
843
|
640
|
208
|
|||||||||
(Recovery) impairment of SBA servicing asset
|
779
|
(127
|
)
|
800
|
||||||||
Other operating expenses
|
1,184
|
1,118
|
1,024
|
|||||||||
Total non-interest expense
|
10,220
|
8,469
|
8,371
|
|||||||||
Income before income tax expense
|
8,999
|
7,116
|
13,527
|
|||||||||
Provision for income taxes
|
2,454
|
3,462
|
3,416
|
|||||||||
Net income
|
$
|
6,545
|
$
|
3,654
|
10,111
|
|||||||
Earnings per share, basic
|
$
|
0.51
|
$
|
0.28
|
$
|
0.95
|
||||||
Earnings per share, diluted
|
$
|
0.49
|
$
|
0.27
|
$
|
0.90
|
||||||
Weighted average shares outstanding, basic
|
12,740,933
|
12,784,298
|
10,169,005
|
|||||||||
Weighted average shares outstanding, diluted
|
13,218,403
|
13,324,059
|
10,818,984
|
|||||||||
Shares outstanding at end of period
|
12,831,345
|
12,864,821
|
12,772,010
|
For the Years Ended
|
||||||||
12/31/2022
|
12/31/2021
|
|||||||
(Unaudited)
|
||||||||
Interest income
|
||||||||
Interest and fees on loans
|
$
|
50,941
|
$
|
49,135
|
||||
Interest on securities
|
208
|
47
|
||||||
Other interest income
|
1,180
|
61
|
||||||
Total interest income
|
52,329
|
49,243
|
||||||
Interest expense
|
||||||||
Interest on deposits
|
1,432
|
1,138
|
||||||
Interest on PPP Liquidity Facility
|
2
|
127
|
||||||
Total interest expense
|
1,434
|
1,265
|
||||||
Net interest income
|
50,895
|
47,978
|
||||||
Provision for loan losses
|
13,519
|
8,039
|
||||||
Net interest income after provision for loan losses
|
37,376
|
39,939
|
||||||
Non-interest income
|
||||||||
Strategic Program fees
|
22,467
|
17,959
|
||||||
Gain on sale of loans, net
|
13,550
|
9,689
|
||||||
SBA loan servicing fees
|
1,603
|
1,156
|
||||||
Change in fair value on investment in BFG
|
(478
|
)
|
2,991
|
|||||
Other miscellaneous income
|
269
|
49
|
||||||
Total non-interest income
|
37,411
|
31,844
|
||||||
Non-interest expense
|
||||||||
Salaries and employee benefits
|
24,489
|
22,365
|
||||||
Professional services
|
5,454
|
1,049
|
||||||
Occupancy and equipment expenses
|
2,204
|
810
|
||||||
(Recovery) impairment of SBA servicing asset
|
1,728
|
800
|
||||||
Other operating expenses
|
4,881
|
4,487
|
||||||
Total non-interest expense
|
38,756
|
29,511
|
||||||
Income before income tax expense
|
36,031
|
42,272
|
||||||
Provision for income taxes
|
10,916
|
10,689
|
||||||
Net income
|
$
|
25,115
|
$
|
31,583
|
||||
Earnings per share, basic
|
$
|
1.96
|
$
|
3.44
|
||||
Earnings per share, diluted
|
$
|
1.87
|
$
|
3.27
|
||||
Weighted average shares outstanding, basic
|
12,729,898
|
8,669,724
|
||||||
Weighted average shares outstanding, diluted
|
13,357,022
|
9,108,163
|
||||||
Shares outstanding at end of period
|
12,831,345
|
12,772,010
|
|
For the Three Months Ended
|
For the Three Months Ended
|
For the Three Months Ended
|
|||||||||||||||||||||||||||||||||
|
12/31/2022
|
9/30/2022
|
12/31/2021
|
|||||||||||||||||||||||||||||||||
Average
Balance
|
Interest
|
Average
Yield/Rate
|
Average
Balance
|
Interest
|
Average
Yield/Rate
|
Average Balance
|
Interest
|
Average
Yield/Rate
|
||||||||||||||||||||||||||||
Interest earning assets:
|
||||||||||||||||||||||||||||||||||||
Interest-bearing deposits with the Federal Reserve,
non-U.S. central banks and other banks
|
$
|
78,619
|
$
|
757
|
3.85
|
%
|
$
|
59,337
|
$
|
290
|
1.95
|
%
|
$
|
72,746
|
$
|
25
|
0.14
|
%
|
||||||||||||||||||
Investment securities
|
14,414
|
73
|
2.03
|
%
|
12,418
|
52
|
1.67
|
%
|
8,078
|
28
|
1.39
|
%
|
||||||||||||||||||||||||
Loans held for sale
|
43,751
|
3,990
|
36.48
|
%
|
50,516
|
4,533
|
35.89
|
%
|
87,156
|
7,553
|
34.66
|
%
|
||||||||||||||||||||||||
Loans held for investment
|
217,619
|
8,450
|
15.53
|
%
|
213,080
|
7,948
|
14.92
|
%
|
199,609
|
7,947
|
15.93
|
%
|
||||||||||||||||||||||||
Total interest earning assets
|
354,403
|
13,270
|
14.98
|
%
|
335,351
|
12,823
|
15.30
|
%
|
367,589
|
15,553
|
16.92
|
%
|
||||||||||||||||||||||||
Less: ALL
|
(11,683
|
)
|
(10,768
|
)
|
(9,450
|
|||||||||||||||||||||||||||||||
Non-interest earning assets
|
32,891
|
32,626
|
24,379
|
|||||||||||||||||||||||||||||||||
Total assets
|
$
|
375,611
|
$
|
357,209
|
$
|
382,518
|
||||||||||||||||||||||||||||||
Interest bearing liabilities:
|
||||||||||||||||||||||||||||||||||||
Demand
|
$
|
44,115
|
$
|
375
|
3.40
|
%
|
$
|
11,857
|
$
|
113
|
3.81
|
%
|
$
|
$7,411
|
$
|
15
|
0.81
|
%
|
||||||||||||||||||
Savings
|
7,605
|
5
|
0.26
|
%
|
7,514
|
1
|
0.05
|
%
|
7,573
|
1
|
0.05
|
%
|
||||||||||||||||||||||||
Money market accounts
|
15,109
|
45
|
1.19
|
%
|
20,615
|
29
|
0.56
|
%
|
28,859
|
21
|
0.28
|
%
|
||||||||||||||||||||||||
Certificates of deposit
|
59,273
|
199
|
1.34
|
%
|
64,789
|
160
|
0.99
|
%
|
104,134
|
242
|
0.93
|
%
|
||||||||||||||||||||||||
Total deposits
|
126,102
|
624
|
1.98
|
%
|
104,775
|
303
|
1.16
|
%
|
147,977
|
279
|
0.75
|
%
|
||||||||||||||||||||||||
Other borrowings
|
330
|
—
|
0.35
|
%
|
360
|
1
|
0.35
|
%
|
1,437
|
2
|
0.63
|
%
|
||||||||||||||||||||||||
Total interest bearing liabilities
|
126,432
|
624
|
1.97
|
%
|
105,135
|
304
|
1.16
|
%
|
149,414
|
281
|
0.75
|
%
|
||||||||||||||||||||||||
Non-interest bearing deposits
|
96,581
|
102,575
|
127,590
|
|||||||||||||||||||||||||||||||||
Non-interest bearing liabilities
|
17,164
|
17,542
|
16,315
|
|||||||||||||||||||||||||||||||||
Shareholders’ equity
|
135,434
|
131,957
|
89,199
|
|||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$
|
375,611
|
$
|
357,209
|
$
|
382,518
|
||||||||||||||||||||||||||||||
Net interest income and interest rate spread
|
$
|
12,646
|
13.01
|
%
|
$
|
12,519
|
14.14
|
%
|
$
|
15,272
|
16.17
|
%
|
||||||||||||||||||||||||
Net interest margin
|
14.27
|
%
|
14.93
|
%
|
16.62
|
%
|
||||||||||||||||||||||||||||||
Ratio of average interest-earning assets to
average interest- bearing liabilities
|
280.31
|
%
|
318.97
|
%
|
246.02
|
%
|
|
For the Year Ended
|
For the Year Ended
|
||||||||||||||||||||||
|
12/31/2022
|
12/31/2021
|
||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||
Average
Balance
|
Interest
|
Average
Yield/Rate
|
Average
Balance
|
Interest
|
Average
Yield/Rate
|
|||||||||||||||||||
Interest earning assets:
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Interest-bearing deposits with the Federal Reserve,
non-U.S. central banks and other banks
|
$
|
74,920
|
$
|
1,180
|
1.58
|
%
|
$
|
55,960
|
$
|
61
|
0.11
|
%
|
||||||||||||
Investment securities
|
12,491
|
208
|
1.67
|
%
|
3,298
|
47
|
1.43
|
%
|
||||||||||||||||
Loans held for sale
|
65,737
|
21,237
|
32.31
|
%
|
59,524
|
22,461
|
37.73
|
%
|
||||||||||||||||
Loans held for investment
|
209,352
|
29,704
|
14.19
|
%
|
198,992
|
26,674
|
13.40
|
%
|
||||||||||||||||
Total interest earning assets
|
362,500
|
52,329
|
14.44
|
%
|
317,774
|
49,243
|
15.50
|
%
|
||||||||||||||||
Less: ALL
|
(10,816
|
)
|
(7,548
|
)
|
||||||||||||||||||||
Non-interest earning assets
|
30,141
|
17,002
|
||||||||||||||||||||||
Total assets
|
$
|
381,825
|
$
|
327,228
|
||||||||||||||||||||
Interest bearing liabilities:
|
||||||||||||||||||||||||
Demand
|
$
|
17,564
|
$
|
531
|
3.02
|
%
|
$
|
6,060
|
$
|
53
|
0.87
|
%
|
||||||||||||
Savings
|
7,310
|
7
|
0.10
|
%
|
7,897
|
10
|
0.13
|
%
|
||||||||||||||||
Money market accounts
|
26,054
|
116
|
0.45
|
%
|
21,964
|
75
|
0.34
|
%
|
||||||||||||||||
Certificates of deposit
|
71,661
|
778
|
1.09
|
%
|
72,311
|
1,000
|
1.38
|
%
|
||||||||||||||||
Total deposits
|
122,589
|
1,432
|
1.17
|
%
|
108,232
|
1,138
|
1.05
|
%
|
||||||||||||||||
Other borrowings
|
566
|
2
|
0.35
|
%
|
36,363
|
127
|
0.35
|
%
|
||||||||||||||||
Total interest bearing liabilities
|
123,155
|
1,434
|
1.16
|
%
|
144,595
|
1,265
|
0.87
|
%
|
||||||||||||||||
Non-interest bearing deposits
|
114,174
|
107,481
|
||||||||||||||||||||||
Non-interest bearing liabilities
|
15,781
|
11,392
|
||||||||||||||||||||||
Shareholders’ equity
|
128,715
|
63,760
|
||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$
|
381,825
|
$
|
327,228
|
||||||||||||||||||||
Net interest income and interest rate spread
|
$
|
50,895
|
13.28
|
%
|
$
|
47,978
|
14.63
|
%
|
||||||||||||||||
Net interest margin
|
14.04
|
%
|
15.10
|
%
|
||||||||||||||||||||
Ratio of average interest-earning assets to average interest- bearing liabilities
|
294.34
|
%
|
219.77
|
%
|
As of and for the Three Months Ended
|
||||||||||||
12/31/2022
|
9/30/2022
|
12/31/2021
|
||||||||||
Selected Loan Metrics
|
||||||||||||
Amount of loans originated
|
$
|
1,219,851
|
$
|
1,506,100
|
$
|
2,304,234
|
||||||
Selected Income Statement Data
|
||||||||||||
Interest income
|
$
|
13,270
|
$
|
12,823
|
$
|
15,553
|
||||||
Interest expense
|
624
|
304
|
281
|
|||||||||
Net interest income
|
12,646
|
12,519
|
15,272
|
|||||||||
Provision for loan losses
|
3,202
|
4,457
|
2,503
|
|||||||||
Net interest income after provision for loan losses
|
9,444
|
8,062
|
12,769
|
|||||||||
Non-interest income
|
9,775
|
7,523
|
9,129
|
|||||||||
Non-interest expense
|
10,220
|
8,469
|
8,371
|
|||||||||
Provision for income taxes
|
2,454
|
3,462
|
3,416
|
|||||||||
Net income
|
6,545
|
3,654
|
10,111
|
|||||||||
Selected Balance Sheet Data
|
||||||||||||
Total Assets
|
$
|
402,209
|
$
|
385,569
|
$
|
380,214
|
||||||
Cash and cash equivalents
|
100,567
|
92,463
|
85,754
|
|||||||||
Investment securities held-to-maturity, at cost
|
14,292
|
13,925
|
11,423
|
|||||||||
Loans receivable, net
|
224,217
|
200,485
|
198,102
|
|||||||||
Strategic Program loans held-for-sale, at lower of cost or fair value
|
23,589
|
43,606
|
60,748
|
|||||||||
SBA servicing asset, net
|
5,210
|
5,269
|
3,938
|
|||||||||
Investment in Business Funding Group, at fair value
|
4,800
|
4,500
|
5,900
|
|||||||||
Deposits
|
242,998
|
232,838
|
251,892
|
|||||||||
PPP Liquidity Facility
|
314
|
345
|
1,050
|
|||||||||
Total shareholders' equity
|
140,459
|
134,285
|
115,442
|
|||||||||
Tangible shareholders’ equity (1)
|
140,459
|
134,285
|
115,442
|
|||||||||
Share and Per Share Data
|
||||||||||||
Earnings per share - basic
|
$
|
0.51
|
$
|
0.28
|
$
|
0.95
|
||||||
Earnings per share - diluted
|
$
|
0.49
|
$
|
0.27
|
$
|
0.90
|
||||||
Book value per share
|
$
|
10.95
|
$
|
10.44
|
$
|
9.04
|
||||||
Tangible book value per share (1)
|
$
|
10.95
|
$
|
10.44
|
$
|
9.04
|
||||||
Weighted avg outstanding shares - basic
|
12,740,933
|
12,784,298
|
10,169,005
|
|||||||||
Weighted avg outstanding shares - diluted
|
13,218,403
|
13,324,059
|
10,818,984
|
|||||||||
Shares outstanding at end of period
|
12,831,345
|
12,864,821
|
12,772,010
|
|||||||||
Asset Quality Ratios
|
||||||||||||
Nonperforming loans to total loans
|
0.1
|
%
|
0.0
|
%
|
0.2
|
%
|
||||||
Net charge offs to average loans
|
4.9
|
%
|
4.7
|
%
|
3.2
|
%
|
||||||
Allowance for loan losses to loans held for investment
|
5.1
|
%
|
5.6
|
%
|
4.8
|
%
|
||||||
Allowance for loan losses to total loans
|
4.6
|
%
|
4.7
|
%
|
3.7
|
%
|
||||||
Capital Ratios
|
||||||||||||
Total shareholders' equity to total assets
|
34.9
|
%
|
34.8
|
%
|
30.4
|
%
|
||||||
Tangible shareholders’ equity to tangible assets (1)
|
34.9
|
%
|
34.8
|
%
|
30.4
|
%
|
||||||
Leverage Ratio (Bank under CBLR)
|
25.1
|
%
|
24.9
|
%
|
17.7
|
%
|
(1)
|
This measure is not a measure recognized under United States generally accepted accounting principles, or GAAP, and is therefore considered to be a non-GAAP financial
measure. See “Reconciliation of Non-GAAP to GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure. Tangible shareholders’ equity is defined as total shareholders’ equity less goodwill and other
intangible assets. The most directly comparable GAAP financial measure is total shareholder’s equity. We had no goodwill or other intangible assets as of any of the dates indicated. We have not considered loan servicing rights or loan
trailing fee asset as intangible assets for purposes of this calculation. As a result, tangible shareholders’ equity is the same as total shareholders’ equity as of each of the dates indicated.
|
Efficiency ratio
|
For the Three Months Ended
|
|||||||||||
12/31/2022
|
9/30/2022
|
12/31/2021
|
||||||||||
($s in thousands)
|
||||||||||||
Non-interest expense
|
$
|
10,220
|
$
|
8,469
|
$
|
8,371
|
||||||
Net interest income
|
12,646
|
12,519
|
15,272
|
|||||||||
Total non-interest income
|
9,775
|
7,523
|
9,129
|
|||||||||
Adjusted operating revenue
|
$
|
22,421
|
$
|
20,042
|
$
|
24,401
|
||||||
Efficiency ratio
|
45.6
|
%
|
42.3
|
%
|
34.3
|
%
|