-
UPDATE -- BayFirst Financial Corp. Reports Record Earnings of $13.02 Million, or $2.98 Per Diluted Share, in 2Q21; Results Highlighted by Strong Loan Growth
Source: Nasdaq GlobeNewswire / 26 Jul 2021 12:31:40 America/New_York
ST. PETERSBURG, Fla., July 26, 2021 (GLOBE NEWSWIRE) -- BayFirst Financial Corp. (f/k/a First Home Bancorp, Inc.) (OTCQX: FHBI) (“BayFirst” or the “Company”), parent company of First Home Bank (“First Home” or the “Bank”) reported record earnings for the second quarter of 2021, driven by higher net interest income from both the recognition of $14.73 million of Paycheck Protection Program (“PPP”) origination fees earned on PPP loans sold during the quarter, as well as higher interest income from non-PPP loans, and strong noninterest income led by residential loan fees. BayFirst reported net income for the second quarter of 2021 of $13.02 million, or $2.98 per diluted common share, compared to net income of $7.51 million, or $1.85 per diluted common share, in the first quarter of 2021, and $2.35 million, or $0.63 per diluted common share, in the second quarter of 2020. The second quarter’s earnings increased tangible book value to $21.14 per common share, from $13.19 in the second quarter a year ago. All per share data has been adjusted to reflect the 3-for-2 stock split effective May 10, 2021.
Net income for the first six months of 2021 increased to $20.53 million, or $4.88 per diluted share, compared to $1.84 million, or $0.44 per diluted share, in the first six months of 2020. Increases in PPP origination fees earned also contributed to the increase in net income during the first half of 2021 compared to the same period in 2020.
“Our strategic focus on growing the organization and expanding market share while managing risk continues to yield extraordinary results, as demonstrated by our record second quarter earnings,” stated Anthony N. Leo, Chief Executive Officer. “Effectively managing each of these areas is key to helping our organization capitalize on the opportunities we see ahead. We had another great quarter with residential lending, due to the hard work and continued efforts of our lending team bringing new customers into the Bank. The success of our residential and SBA lending services is fueling profitability and providing new market opportunities. Consistent growth in our core business continues to improve ongoing sales effectiveness and expanded marketing efforts, with core deposits increasing nearly 38% in the past year, while our conventional loan portfolio grew by 34% in that period.”
“Over the past 15 months we have been active participants in the SBA’s PPP lending programs, helping our new and existing business customers sustain their business operations, with over $1.2 billion in PPP loans originated over the course of the program,” said Mr. Leo. “Our success with PPP lending is having an impact on new SBA opportunities. Now, our CreditBench Division is focused on reaching out to businesses in Tampa Bay and across the nation to provide fresh growth capital under the SBA recovery program, which carries a 90% guarantee on SBA 7(a) loans originated through September 30, 2021, or until appropriations are depleted.”
Second Quarter 2021 Highlights:
- BayFirst reported return on average common equity of 74.61% for the second quarter 2021, up from the prior quarter’s return of 49.56% and the year ago quarter’s return of 20.33%.
- Despite significant levels of PPP loans in the current year and throughout much of 2020, which inflated average assets, return on average assets for the second quarter of 2021 equaled 3.38%, increases of 154 basis points over the prior quarter’s return of 1.84% and 264 basis points over the second quarter 2020 return of 0.74%.
- The Residential Mortgage Division originated fewer loans quarter over quarter, with production of $521.9 million during the second quarter of 2021 compared to the record setting production of $715.9 million during the first quarter of 2021 but represents an increase over the $407.7 million of loans produced during the second quarter of 2020.
- Gross loans, excluding loans held for sale and PPP loans, increased by $44.21 million or 10.50% during the second quarter of 2021 and by $108.35 million or 30.34% over the past year to $465.47 million, due to increases in both conventional community bank loans and SBA loans.
- During the second quarter of 2021, BayFirst sold $326.3 million in PPP loans originated in 2021 to a third party.
- Deposits increased by $25.06 million or 4.13% during the second quarter of 2021, and by $56.08 million or 9.73% during the past year, to $632.32 million at June 30, 2021, with the majority of the 12-month increase coming from increases in money market accounts, interest bearing demand deposits, and noninterest-bearing demand deposits, partially offset by declines in time deposit balances.
- Tangible book value per common share increased to $21.14 at the end of the second quarter from $17.93 (adjusted for the 3-for-2 stock split effective May 10, 2021) at the end of the preceding quarter.
- The Company paid a quarterly cash dividend of 7 cents per common share, on June 15, 2021 to shareholders of record as of May 15, 2021. The cash dividend represented a 5% increase in the cash dividend paid to common shareholders over the previous quarter and marked the 20th consecutive quarter in which BayFirst paid a cash dividend.
Results of Operations
Net Income
Net income increased to $13.02 million for the second quarter of 2021 compared to $7.51 million in the first quarter of 2021, and $2.35 million in the second quarter of 2020. The increase in net income for the second quarter of 2021 over the preceding quarter was primarily due to the recognition of $14.73 million of PPP origination fees earned on PPP loans sold during the quarter. In the first six months of 2021, net income increased substantially to $20.53 million, from $1.85 million in the first six months of 2020.
Net Interest Income and Net Interest Margin
Net interest income was $26.70 million in the second quarter of 2021, an increase of $14.07 million or 111.41% from $12.63 million in the first quarter of 2021, and an increase of $19.26 million or 259.00% from the second quarter of 2020. The increase during the second quarter as compared to the prior quarter was mainly due to an increase in net PPP origination fees. The increase over the same quarter in the prior year was due primarily to the addition of PPP loan origination fee income. In the first six months of 2021, net interest income increased $27.54 million, or 233.43%, to $39.33 million, compared to $11.80 million in the same period a year ago.
Net interest margin was 7.17% for the second quarter of 2021 compared to 3.21% for the first quarter of 2021 and 2.48% for the second quarter of 2020. The substantial increase in margin in the second quarter of 2021 as compared to the prior quarter was largely due to the increase in PPP origination fees resulting from both PPP loan forgiveness and the PPP loan sale.
Noninterest Income
Noninterest income was $24.41 million for the second quarter of 2021, a decrease of $8.75 million or 26.37% from $33.16 million in the first quarter of 2021, and an increase of $3.05 million or 14.26% from $21.37 million in the second quarter of 2020. The decrease in the second quarter of 2021 as compared to the prior quarter was primarily the result of a decrease in residential loan fee income and SBA servicing income. The increase over the same quarter in the prior year was primarily the result of an increase in residential loan production which produced an increase in residential loan fee income. In the first half of the year, noninterest income increased $23.45 million, or 68.71%, to $57.57 million, compared to $34.13 million in the first half of 2020. The increase over the same period in the prior year was due to higher residential loan fee income, that was partly offset by no gain on sale of SBA loans during the current year.
Noninterest Expense
Noninterest expense was $33.67 million in the second quarter of 2021, which was relatively unchanged from $33.72 million in the first quarter of 2021 and an increase of $11.04 million or 48.77% compared to the second quarter of 2020. The increase in the second quarter of 2021 as compared to the second quarter of 2020 was primarily due to increases in salaries and benefits, commissions, and bonus and incentives as residential loan production and related personnel increased substantially, and significant PPP loan production over the past year necessitated the need for additional personnel, temporary workers, and significant overtime. Other noninterest expenses, such as mortgage banking expense, increased proportionately with the increase in residential lending volume. Year-to-date, noninterest expense was $67.39 million, compared to $39.79 million in the same period one year earlier, with the majority of the increases related to the above-mentioned items.
Balance Sheet
Assets
Total assets decreased by $518.60 million or 30.21% during the second quarter of 2021 to $1.20 billion, mainly due to the sale of SBA PPP loans originated during the current year as well as the SBA’s forgiveness of PPP loans originated in 2020.
Loans
Gross loans, excluding loans held for sale and PPP loans, increased by $44.21 million or 10.50% during the second quarter of 2021 and by $108.35 million or 30.34% over the past year to $465.47 million due to increases in both conventional community bank loans and SBA loans. Traditional SBA production was largely halted during the second quarter of 2020 as a result of the Covid-19 Pandemic and related focus on PPP loans but resumed in the third quarter of 2020. PPP loans, net of deferred origination fees decreased by $537.55 million or 55.57% in the second quarter of 2021 to $429.72 million due to PPP loan sales and PPP forgiveness payments. Deferred PPP origination fees, net, which will be recognized over the remaining average life of the PPP loans totaled $2.71 million as of June 30, 2021.
Deposits
Deposits increased by $25.06 million or 4.13% during the second quarter of 2021 and increased by $56.08 million or 9.73% during the past year, ending the quarter at $632.32 million, with the majority of the 12-month increase coming from increases in money market accounts, interest bearing demand deposits, and noninterest-bearing demand deposits, partially offset by declines in time deposit balances.
Asset Quality
BayFirst recorded no provision for loan losses during the second quarter of 2021, compared to $2.00 million in the first quarter of 2021 and $3.00 million in the second quarter of 2020. In the first six months of 2021, BayFirst recorded a $2.00 million provision for loan losses, compared to $4.90 million in the first six months of 2020. Throughout 2020, the qualitative factors in the allowance for loan loss calculation were increased due to the economic uncertainties caused by the COVID-19 pandemic which resulted in significant provision expense each quarter of 2020. As asset quality remained stable in the second quarter of 2021 and as many of the Company’s SBA loans were bolstered by additional government support during the second quarter, additional provision for loan losses was not deemed necessary.
Over the past five years, the Company’s loan losses have been incurred primarily in its SBA unguaranteed loan portfolio, particularly loans originated under the SBA 7(a) Small Loan Program. The Small Loan Program represents loans of $350,000 or less and carry an SBA guaranty of 75% to 85% of the loan, depending on the original principal balance. The default rate on loans originated in the SBA 7(a) Small Loan Program is higher than the Bank’s other SBA 7(a) loans, conventional commercial loans, or residential mortgage loans.
Net charge-offs for the second quarter 2021 were $1.22 million, a $75,000 increase from $1.15 million for the first quarter 2021 and a $440,000 decrease compared to $1.56 million of net charge-offs in the second quarter of 2020. Net charge-offs as a percentage of average loans, excluding PPP loans, were 0.21% for the second quarter of 2021, up slightly from 0.19% in the first quarter of 2021, and down from 0.38% in the second quarter of 2020. Non-performing assets, excluding government guaranteed loans, to total assets were 0.30% as of June 30, 2021, a slight increase compared to 0.19% as of March 31, 2021, and 0.24% as of June 30, 2020.
As of June 30, 2021, a total of 45 loans with principal balances of $3.18 million were under payment deferral compared to a total of 20 loans with principal balances of $1.05 million as of March 31, 2021. As expected, the level of SBA loans on deferral was relatively minimal in the first quarter of 2021 with a modest increase in the second quarter of 2021 as additional payment support that was provided by the Economic Aid Act signed into law on December 27, 2020 began to subside. As a result of the Economic Aid Act, beginning in February 2021, Section 1112 CARES Act payments were extended, with some stipulations, which assisted the bulk of our SBA borrowers for 3 months and, depending on the type of business, up to 8 months of additional principal and interest payments with a cap of $9,000 per month per borrower.
Although the Company’s asset quality trends indicate minimal stress on the portfolio, management believes it is prudent to be proactive in maintaining increased levels of the allowance for loan losses as compared to pre-Pandemic levels using qualitative measures. The ratio of the allowance for loan losses to total loans, excluding SBA guaranteed loans, residential loans held for sale, and loans whereby the Fair Value Option was elected, was 6.83% at June 30, 2021, 7.62% as of March 31, 2021, and 4.98% as of June 30, 2020.
Capital Strength
The Bank’s Tier 1 leverage ratio increased to 12.06% as of June 30, 2021, from 10.84% as of March 31, 2021, primarily due to the addition of capital from earnings during the quarter. The Tier 1 leverage ratio increased from 6.77% as of June 30, 2020 when the Tier 1 leverage ratio was temporarily deflated for one quarter at the beginning of the PPP program when excess cash was required to meet liquidity needs. In addition, the Tier 1 leverage ratio increased due to strong earnings and additional capital raises during the past year with the majority of capital raised being contributed to the Bank. The CET 1 and Tier 1 capital ratio to risk-weighted assets increased to 21.40% as of June 30, 2021, from 16.97% as of March 31, 2021, and 15.14% as of June 30, 2020, and the total capital to risk-weighted assets ratio increased to 22.69% as of June 30, 2021, from 18.27% as of March 31, 2021, and 16.55% as of June 30, 2020.
During the second quarter of 2021, no shares of Series B Preferred Stock were issued and 2,400 shares of Series B Preferred Stock were converted to common shares. 1,900 of those shares were converted early in the quarter at a conversion rate equal to tangible book value as of December 31, 2020 of $16.02 per share and 500 of those shares were converted later in the quarter at a conversion rate equal to the tangible book value as of March 31, 2021, or $17.93 per share, resulting in 146,751 new common shares. Additionally, $933,000 of common stock was issued through private placements and employee stock programs during the second quarter of 2021.
During the first quarter of 2021, BayFirst raised approximately $726,000 of 8% Series B Cumulative Convertible Preferred Stock as well as $672,000 of common stock through private placements and employee stock programs. In addition, $2.45 million of Series B Preferred Stock was converted to common shares during the quarter at a conversion rate equal to the tangible book value as of December 31, 2020, of $16.02 per share, resulting in 157,370 new common shares.
Recent Events
On May 3, 2021, the Company announced the name change from First Home Bancorp, Inc. to BayFirst Financial Corp. The name of the Company’s banking subsidiary, First Home Bank, and the ticker symbol “FHBI” remained unchanged.
On May 5, 2021, the Company announced a 3 for 2 common stock split, which took effect on May 10, 2021. Pursuant to the split, common shareholders received three common shares of the Company’s common stock for every two shares owned as of the record date.
On May 11, 2021, the Company filed a registration statement with the SEC.
About BayFirst Financial Corp.
BayFirst Financial Corp. (f/k/a First Home Bancorp, Inc.) is a registered bank holding company which commenced operations on September 1, 2000. Its primary source of income is from its wholly owned subsidiary, First Home Bank, which commenced business operations on February 12, 1999. First Home Bank is a Federal Reserve member and a state-chartered banking institution. The Bank operates six full-service office locations, 26 mortgage loan production offices, and is in the top 50 by dollar volume and top 20 by number of units, of nation-wide SBA lenders
BayFirst Financial Corp., through the bank, offers a broad range of commercial and consumer banking services including various types of deposit accounts and loans for businesses and individuals. As of June 30, 2021, BayFirst Financial Corp. had $1.20 billion in total assets.
Forward Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “is confident that” and similar expressions are intended to identify these forward-looking statements. These forward-looking statements involve risk and uncertainty and a variety of factors could cause our actual results and experience to differ materially from the anticipated results or other expectations expressed in these forward-looking statements. BayFirst Financial Corp. does not have a policy of updating or revising forward-looking statements except as otherwise required by law, and silence by management over time should not be construed to mean that actual events are occurring as estimated in such forward-looking statements.
Contacts: Anthony N. Leo Jeffrey M. Hunt Chief Executive Officer Chief Strategy Officer 727.399.5678 727.399.5687 BayFirst Financial Corp. Consolidated Statements of Income (Unaudited) QUARTERLY YEAR-TO-DATE 6/30/2021 3/31/2021 6/30/2020 6/30/2021 6/30/2020 Interest income: Loans, other than PPP $ 6,752,363 $ 6,599,324 $ 5,206,678 $ 13,352,114 $ 11,650,792 PPP loan interest income 1,859,349 2,199,377 1,173,413 4,058,726 1,173,413 PPP origination fee income 20,032,521 6,012,990 3,872,901 26,045,084 3,872,901 Interest-bearing deposits in banks and other 150,585 81,031 137,756 231,616 499,498 Total interest income $ 28,794,818 $ 14,892,722 $ 10,390,748 $ 43,687,540 $ 17,196,604 Interest expense: Deposits 1,193,766 1,320,552 2,359,675 2,514,319 4,571,479 PPPLF borrowings 654,566 766,023 391,443 1,420,589 391,443 Other 244,763 175,695 201,908 420,458 437,321 Total interest expense 2,093,095 2,262,270 2,953,026 4,355,366 5,400,243 Net interest income 26,701,723 12,630,452 7,437,722 39,332,174 11,796,361 Provision for loan losses - 2,000,000 3,000,000 2,000,000 4,900,000 Net interest income after provision for loan losses 26,701,723 10,630,452 4,437,722 37,332,174 6,896,361 Noninterest income: Service charges and fees 363,976 221,903 196,663 585,879 458,641 Bank Owned Life Insurance income 83,708 84,094 17,559 167,802 17,559 Residential loan fee income 23,352,274 32,028,680 20,261,044 55,380,955 30,662,037 Gain on sale of SBA loans - - 49,191 - 1,202,238 SBA loan servicing right gain - - - - 530,000 Mortgage servicing right gain 196,500 - - 196,500 - Loss on sale of unguaranteed loan amounts - - - - - SBA and mortgage servicing income, net 324,881 704,282 727,796 1,029,163 1,187,593 Other SBA noninterest income 92,612 120,065 113,877 212,677 67,998 Total noninterest income 24,413,951 33,159,024 21,366,130 57,572,976 34,126,066 Noninterest Expense: Salaries and benefits 12,948,424 13,166,463 8,315,857 26,114,887 15,621,318 Commissions 7,640,383 10,320,097 6,004,209 17,960,480 9,685,430 Bonus and incentives 1,577,939 1,552,452 2,006,157 3,130,390 2,282,693 Occupancy and equipment expense 1,296,516 1,332,709 1,099,281 2,629,226 2,131,816 Data processing 2,592,875 1,269,091 879,836 3,861,966 1,922,965 Professional services 842,888 923,772 875,175 1,766,660 1,465,036 Mortgage lead generation 597,831 763,631 397,563 1,361,462 861,775 Marketing and business development 1,279,699 878,844 354,508 2,158,543 670,898 Mortgage banking expense 1,571,984 1,694,639 1,174,734 3,266,622 2,025,009 Regulatory assessments 99,503 102,836 172,992 202,339 273,492 ATM and interchange expense 93,286 76,912 87,510 170,198 151,242 Telecommunications expense 137,331 139,076 143,180 276,408 291,587 Employee recruiting and development 1,007,520 614,619 313,964 1,622,139 890,193 Loan origination and collection 1,105,076 495,939 430,560 1,601,015 863,423 Other expenses 876,236 390,338 375,333 1,266,572 650,492 Total noninterest expense 33,667,491 33,721,418 22,630,859 67,388,907 39,787,369 Income before taxes 17,448,183 10,068,058 3,172,993 27,516,243 1,235,058 Income tax expense (benefit) 4,431,878 2,557,516 827,926 6,989,395 (608,977 ) Net income $ 13,016,305 $ 7,510,542 $ 2,345,067 $ 20,526,848 $ 1,844,035 Preferred dividends 235,487 331,086 177,638 566,573 355,276 Net income available to common shareholders $ 12,780,818 $ 7,179,456 $ 2,167,429 $ 19,960,275 $ 1,488,759 BayFirst Financial Corp. Consolidated Balance Sheets (Unaudited) Assets 6/30/21 3/31/21 6/30/20 Cash and due from banks $ 2,896,434 $ 2,857,527 $ 2,605,669 Interest-bearing deposits in banks 102,441,146 58,139,736 154,779,058 Cash and cash equivalents 105,337,580 60,997,263 157,384,727 Certificates of deposit 2,381,000 2,381,000 2,381,000 Securities HTM and restricted equity securities 2,825,072 2,750,677 2,745,001 Securities AFS 22,673,824 - - Residential loans held for sale 126,479,282 208,761,599 95,784,010 PPP loans, net of deferred fees and costs 429,723,930 967,274,548 810,136,858 Community bank loans 169,448,941 156,987,667 125,866,306 SBA loans 296,020,690 264,270,729 231,249,828 Total loans held for investment 895,193,561 1,388,532,944 1,167,252,992 Allowance for loan losses (20,796,672 ) (22,017,222 ) (12,880,198 ) Loans, net 874,396,889 1,366,515,722 1,154,372,794 Accrued interest receivable 7,039,393 8,584,297 2,937,422 Premises and equipment, net 21,076,195 18,303,348 16,655,990 Loan servicing rights 6,805,072 7,444,471 10,033,962 Bank owned life insurance 12,351,250 12,267,541 12,017,559 Other assets 16,863,376 28,825,378 15,886,449 Total assets $ 1,198,228,933 $ 1,716,831,296 $ 1,470,198,914 Liabilities Noninterest-bearing transaction accounts $ 81,150,095 $ 77,766,379 $ 73,651,915 Interest-bearing transaction accounts 143,045,628 149,677,931 119,661,033 Savings and money market deposits 355,045,057 325,187,181 226,480,891 Time deposits 53,081,232 54,633,054 156,451,708 Total deposits 632,322,012 607,264,545 576,245,547 Federal funds purchased - 40,000,000 - Federal Home Loan Bank advances - - 10,000,000 Subordinated debentures 5,981,685 5,950,935 6,939,848 Notes payable 3,526,937 3,640,701 3,981,993 PPP Liquidity Facility 443,905,567 957,413,181 803,171,434 Accrued expenses and other liabilities 19,679,902 23,141,432 16,553,309 Total liabilities 1,105,416,103 1,637,410,794 1,416,892,131 Stockholders' equity Preferred stock, series A 6,161,000 6,161,000 7,661,000 Preferred stock, series B 4,456,062 6,791,117 - Common stock and additional paid-in capital 49,500,447 46,167,873 42,199,056 Accumulated other comprehensive income, net of taxes (121,717 ) - - Deferred compensation - restricted stock (29,127 ) (35,043 ) (52,789 ) Retained earnings 32,846,165 20,335,555 3,499,516 Total stockholders' equity 92,812,830 79,420,502 53,306,783 Total liabilities and stockholders' equity $ 1,198,228,933 $ 1,716,831,296 $ 1,470,198,914 BayFirst Financial Corp. Selected Financial Data (Unaudited) YEAR-TO-DATE Selected income statement data: 6/30/2021 3/31/2021 6/30/2020 6/30/2021 6/30/2020 Interest income $ 28,794,818 $ 14,892,722 $ 10,390,748 $ 43,687,540 $ 17,196,604 Interest expense 2,093,095 2,262,270 2,953,026 4,355,366 5,400,243 Net interest income 26,701,723 12,630,452 7,437,722 39,332,174 11,796,361 Provision for loan losses - 2,000,000 3,000,000 2,000,000 4,900,000 Noninterest income 24,413,951 33,159,024 21,366,130 57,572,976 34,126,066 Noninterest expense 33,667,491 33,721,418 22,630,859 67,388,907 39,787,369 Income tax expense (benefit) 4,431,878 2,557,516 827,926 6,989,395 (608,977 ) Net income 13,016,305 7,510,542 2,345,067 20,526,848 1,844,035 Preferred dividends 235,487 331,086 177,638 566,573 355,276 Net income available to common shareholders 12,780,818 7,179,456 2,167,429 19,960,275 1,488,759 Balance sheet data: Average loans $ 1,275,082,074 $ 1,469,581,537 $ 904,005,393 1,371,794,514 660,803,150 Average loans, excluding PPP loans 585,752,596 599,621,702 410,823,344 592,648,837 414,210,048 Average loans, excluding LHFS 1,170,752,578 1,292,089,798 838,325,609 1,231,086,002 591,642,122 Average assets 1,541,287,371 1,636,170,908 1,261,871,846 1,588,467,030 907,321,481 Average total equity 80,699,605 72,988,806 50,547,711 76,865,506 50,793,100 Average common equity 68,524,605 57,944,076 42,652,711 63,247,714 42,898,100 Total loans, period end 1,021,672,843 1,597,294,543 1,263,037,002 1,021,672,843 1,263,037,002 Total loans, excluding PPP 591,948,913 630,019,995 452,900,144 591,948,913 452,900,144 Total loans, excluding PPP and LHFS 465,469,631 421,258,396 357,116,134 465,469,631 357,116,134 Loans where the Fair Value Option (FVO) was elected 10,070,203 10,544,460 9,937,603 10,070,203 9,937,603 Total loans, excl guaranteed loans, LHFS, and FVO loans 304,363,746 288,889,448 258,489,358 304,363,746 258,489,358 ALLL, period end 20,796,672 22,017,222 12,880,198 20,796,672 12,880,198 Total assets, at period end 1,198,228,933 1,716,831,296 1,470,198,914 1,198,228,933 1,470,198,914 Share data: (*) Basic earnings (loss) per share $ 3.34 $ 2.05 $ 0.63 $ 5.44 $ 0.44 Diluted earnings (loss) per share $ 2.98 $ 1.85 $ 0.63 $ 4.88 $ 0.44 Tangible book value per common share (at period end) $ 21.14 $ 17.93 $ 13.19 $ 21.14 $ 13.19 Shares of common stock outstanding 3,867,414 3,678,566 3,435,516 3,867,414 3,435,516 Weighted average common shares outstanding: Basic 3,821,993 3,509,115 3,414,279 3,666,418 3,407,292 Diluted 4,315,022 4,011,537 3,414,279 4,082,761 3,407,292 Performance ratios: Return on average assets 3.38 % 1.84 % 0.74 % 2.58 % 0.41 % Return on average common equity 74.61 % 49.56 % 20.33 % 62.15 % 6.94 % Yield on average earning assets 7.73 % 3.79 % 3.40 % 5.77 % 4.30 % Cost of average interest bearing liabilities 0.61 % 0.62 % 1.00 % 0.61 % 1.56 % Net interest margin 7.17 % 3.21 % 2.48 % 5.20 % 2.97 % Asset quality ratios: Net charge-offs 1,220,549 1,145,117 1,560,195 2,365,666 2,761,752 Net charge-offs/avg loans excl PPP 0.21 % 0.19 % 0.38 % 0.40 % 0.67 % Non-performing loans (including gov't gtd loans), at period end 9,883,570 9,740,143 8,045,041 9,883,570 8,045,041 Non-performing assets (including gov't gtd loans), at period end 9,883,570 9,740,143 8,045,041 9,883,570 8,045,041 Non-performing loans (excluding gov't gtd loans), at period end 3,575,773 3,241,531 3,528,531 3,575,773 3,528,531 Non-performing assets (excluding gov't gtd loans), at period end 3,575,773 3,241,531 3,528,531 3,575,773 3,528,531 Non-performing loans (including gov't gtd loans)/total loans 0.97 % 0.61 % 0.64 % 0.97 % 0.64 % Non-performing assets (including gov't gtd loans)/total assets 0.82 % 0.57 % 0.55 % 0.82 % 0.55 % Non-performing loans (excluding gov't gtd loans)/total loans 0.35 % 0.20 % 0.28 % 0.35 % 0.28 % Non-performing assets (excluding gov't gtd loans)/total assets 0.30 % 0.19 % 0.24 % 0.30 % 0.24 % ALLL/Total loans 2.04 % 1.38 % 1.02 % 2.04 % 1.02 % ALLL/Total loans, excl PPP loans 3.51 % 3.49 % 2.84 % 3.51 % 2.84 % ALLL/Total loans, excl guaranteed loans, LHFS, and FVO loans 6.83 % 7.62 % 4.98 % 6.83 % 4.98 % Other company information: FTEs 647 649 461 647 461 Community banking center offices 6 6 6 6 6 Loan production offices 26 29 22 26 22 (*) Adjusted for the three-for-two stock split, effective May 10, 2021. 