Exhibit 99.1
January 27, 2021
Earnings Report – December 31, 2020
Record Assets
Dear Shareholders:
We are pleased to announce record assets for your company. Total assets were $1.2 billion as of December 31, 2020 compared to $1.1 billion as of December 31, 2019. Year-to-date net income was $11.7 million for the period ending December 31, 2020 compared to $13.2 million for the period ending December 31, 2019. Year-to-date diluted earnings per share was $1.97 and $2.21, for December 31, 2020 and 2019, respectively.
The change in year-to-date net income from prior year was impacted by the following factors: a decrease in net interest income primarily due to lower interest rates, higher provision for loan loss expense due to qualitative factors for COVID-19 and one specifically reserved loan, higher non-interest income lifted by gains on secondary market loan sales, and an increase in non-interest expense driven by compensation expense. The increase in the balance sheet was due to higher investment securities and higher loans which were led by Paycheck Protection Program (“PPP”) loans. The increase in securities and loans were funded by higher deposits.
As we look back on 2020, we have accomplished a great deal. We opened two new branches in Lexington, navigated untold challenges due to COVID, and managed to support our small business customers through PPP loans and loan deferrals, all while continuing to provide Premier Customer Service. As we look forward to 2021 and beyond, we believe we are incredibly well positioned for continued growth.
As always, thank you for your continued support.
| |
/s/Louis Prichard | |
Louis Prichard | |
President, CEO | |
UNAUDITED
CONSOLIDATED BALANCE SHEET
(in thousands)
| | | | | | | | | |
| | | | | | | | Percentage |
|
|
| 12/31/2020 |
| 12/31/2019 |
| Change |
| ||
| | | | | | | | | |
Assets | | | | | | | | | |
Cash & Due From Banks | | $ | 38,579 | | $ | 21,922 |
| 76.0 | % |
Federal Funds Sold | |
| 395 | |
| 260 |
| 51.9 | |
Interest Bearing Time Deposits | |
| 2,470 | |
| 2,375 |
| 4.0 | |
Securities | |
| 353,494 | |
| 265,330 |
| 33.2 | |
Loans Held for Sale | |
| 4,427 | |
| 2,144 |
| 106.5 | |
Loans | |
| 766,871 | |
| 744,313 |
| 3.0 | |
Reserve for Loan Losses | |
| 9,897 | |
| 8,460 |
| 17.0 | |
Net Loans | |
| 756,974 | |
| 735,853 |
| 2.9 | |
Bank Owned Life Insurance | | | 18,713 | | | 18,165 | | 3.0 | |
Other Assets | |
| 64,453 | |
| 64,741 |
| (0.4) | |
Total Assets | | $ | 1,239,505 | | $ | 1,110,790 |
| 11.6 | % |
| | | | | | | | | |
Liabilities & Stockholders' Equity | | | | | | | | | |
Deposits | | | | | | | | | |
Demand | | $ | 313,285 | | $ | 235,268 |
| 33.2 | % |
Savings & Interest Checking | |
| 494,928 | |
| 395,680 |
| 25.1 | |
Certificates of Deposit | |
| 170,391 | |
| 211,705 |
| (19.5) | |
Total Deposits | |
| 978,604 | |
| 842,653 |
| 16.1 | |
Repurchase Agreements | |
| 9,129 | |
| 5,994 |
| 52.3 | |
Other Borrowed Funds | |
| 103,749 | |
| 123,635 |
| (16.1) | |
Other Liabilities | |
| 19,681 | |
| 19,245 |
| 2.3 | |
Total Liabilities | |
| 1,111,163 | |
| 991,527 |
| 12.1 | |
Stockholders' Equity | |
| 128,342 | |
| 119,263 |
| 7.6 | |
Total Liabilities & Stockholders' Equity | | $ | 1,239,505 | | $ | 1,110,790 |
| 11.6 | % |
CONSOLIDATED INCOME STATEMENT
(in thousands)
| | | | | | | | | | | | | | | | | |
| | Years Ending | | Three Months Ending |
| ||||||||||||
|
| |
| |
| Percentage |
| |
| |
| Percentage |
| ||||
| | 12/31/2020 | | 12/31/2019 | | Change | | 12/31/2020 | | 12/31/2019 | | Change |
| ||||
Interest Income | | $ | 42,685 | | $ | 45,532 | | (6.3) | % | $ | 10,488 | | $ | 11,481 | | (8.6) | % |
Interest Expense | |
| 6,703 | |
| 8,983 | | (25.4) | |
| 1,289 | |
| 2,240 | | (42.5) | |
Net Interest Income | |
| 35,982 | |
| 36,549 | | (1.6) | |
| 9,199 | |
| 9,241 | | (0.5) | |
Loan Loss Provision | |
| 1,775 | |
| 1,250 | | 42.0 | |
| (100) | |
| 425 | | (123.5) | |
Net Interest Income After Provision | |
| 34,207 | |
| 35,299 | | (3.1) | |
| 9,299 | |
| 8,816 | | 5.5 | |
Other Income | |
| 15,975 | |
| 14,239 | | 12.2 | |
| 4,269 | |
| 3,844 | | 11.1 | |
Other Expenses | |
| 37,607 | |
| 35,308 | | 6.5 | |
| 9,603 | |
| 9,035 | | 6.3 | |
Income Before Taxes | |
| 12,575 | |
| 14,230 | | (11.6) | |
| 3,965 | |
| 3,625 | | 9.4 | |
Income Taxes | |
| 878 | |
| 1,077 | | (18.5) | |
| 444 | |
| 136 | | 226.5 | |
Net Income | | $ | 11,697 | | $ | 13,153 | | (11.1) | % | $ | 3,521 | | $ | 3,489 | | 0.9 | % |
| | | | | | | | | | | | | | | | | |
Selected Ratios | | | | | | | | | | | | | | | | | |
Return on Average Assets | |
| 0.97 | % |
| 1.20 | % | | |
| 1.16 | % |
| 1.24 | % | | |
Return on Average Equity | |
| 9.54 | |
| 11.52 | | | |
| 11.22 | |
| 11.82 | | | |
| | | | | | | | | | | | | | | | | |
Earnings Per Share | | $ | 1.97 | | $ | 2.21 | | | | $ | 0.59 | | $ | 0.59 | | | |
Earnings Per Share - assuming dilution | |
| 1.97 | |
| 2.21 | | | |
| 0.59 | |
| 0.59 | | | |
Cash Dividends Per Share | |
| 0.72 | |
| 0.68 | | | |
| 0.18 | |
| 0.17 | | | |
Book Value Per Share | |
| 21.58 | |
| 20.17 | | | | | | | | | | | |
Tangible Book Value Per Share | |
| 19.22 | |
| 17.78 | | | | | | | | | | | |
| | | | | | | | | | |
Market Price |
| High |
| Low |
| Close |
| |||
Fourth Quarter '20 | | $ | 20.70 | | $ | 15.75 | | $ | 20.70 | |
Third Quarter '20 | | $ | 17.00 | | $ | 15.83 | | $ | 16.10 | |