LMST - Limestone Bancorp Reports First Quarter 2023 Results
Limestone Bancorp, Inc. (NASDAQ: LMST) (the “Company”), parent company of Limestone Bank, Inc. (the “Bank”), today reported unaudited results for the first quarter of 2023. Please see attached financial results and data tables for more information.
About Limestone Bancorp, Inc.
Limestone Bancorp, Inc. (NASDAQ: LMST) is a Louisville, Kentucky-based bank holding company which operates banking centers in 14 counties through its wholly-owned subsidiary Limestone Bank. The Bank’s markets include metropolitan Louisville in Jefferson County and the surrounding counties of Bullitt and Henry and extend south along the Interstate 65 corridor. The Bank serves south central, southern, and western Kentucky from banking centers in Barren, Butler, Daviess, Edmonson, Green, Hardin, Hart, Ohio, and Warren counties. The Bank also has banking centers in Lexington, Kentucky, the second largest city in the state, and Frankfort, Kentucky, the state capital. 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: the Company’s pending merger transaction with Peoples Bancorp, Inc., merger-related expenses and requirements during the pendency of the merger transaction and conditions that must be satisfied for the merger transaction to be completed, including the receipt of required regulatory and shareholder approvals (all of which has been obtained); the impact and duration of the COVID-19 pandemic; 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 inflation and efforts to control it; 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, 2022.
The Company’s Annual Report on Form 10-K, which also constitutes the 2022 annual report to shareholders, is accessible at no cost on the Company’s website at www.limestonebank.com , under the Investor Relations section. Shareholders of the Company may receive a hard copy free of charge upon request to the Company at 2500 Eastpoint Parkway, Louisville, Kentucky 40223-4156, Attention: Investor Relations; (502) 499-4773.
Additional Information
Unaudited supplemental financial information for the first quarter ending March 31, 2023, follows.
| 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 |
|
|
| 3/31/23 |
|
|
| 12/31/22 |
|
|
| 9/30/22 |
|
|
| 6/30/22 |
|
|
| 3/31/22 |
|
|
|
|
|
|
|
|
|
|
|
|
| Income Statement Data |
|
|
|
|
|
|
|
|
|
|
| Interest income |
| $ |
| 17,704 |
|
|
| $ |
| 17,140 |
|
|
| $ |
| 15,121 |
|
|
| $ |
| 13,122 |
|
|
| $ |
| 12,427 |
|
|
| Interest expense |
|
|
| 5,365 |
|
|
|
|
| 3,768 |
|
|
|
|
| 2,209 |
|
|
|
|
| 1,442 |
|
|
|
|
| 1,313 |
|
|
| Net interest income |
|
|
| 12,339 |
|
|
|
|
| 13,372 |
|
|
|
|
| 12,912 |
|
|
|
|
| 11,680 |
|
|
|
|
| 11,114 |
|
|
| Provision (negative provision) for credit losses |
|
|
| 654 |
|
|
|
|
| 130 |
|
|
|
|
| (1,250 |
| ) |
|
|
| 450 |
|
|
|
|
| 750 |
|
|
| Net interest income after provision |
|
|
| 11,685 |
|
|
|
|
| 13,242 |
|
|
|
|
| 14,162 |
|
|
|
|
| 11,230 |
|
|
|
|
| 10,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Service charges on deposit accounts |
|
|
| 653 |
|
|
|
|
| 703 |
|
|
|
|
| 748 |
|
|
|
|
| 690 |
|
|
|
|
| 634 |
|
|
| Bank card interchange fees |
|
|
| 1,006 |
|
|
|
|
| 1,127 |
|
|
|
|
| 1,061 |
|
|
|
|
| 1,087 |
|
|
|
|
| 1,003 |
|
|
| Bank owned life insurance income |
|
|
| 147 |
|
|
|
|
| 107 |
|
|
|
|
| 148 |
|
|
|
|
| 249 |
|
|
|
|
| 202 |
|
|
| Gain (loss) on sales and calls of securities, net |
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| (3 |
| ) |
|
|
| — |
|
|
| Gain on sale of premises held for sale |
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| 163 |
|
|
| Other |
|
|
| 254 |
|
|
|
|
| 218 |
|
|
|
|
| 271 |
|
|
|
|
| 233 |
|
|
|
|
| 236 |
|
|
| Non-interest income |
|
|
| 2,060 |
|
|
|
|
| 2,155 |
|
|
|
|
| 2,228 |
|
|
|
|
| 2,256 |
|
|
|
|
| 2,238 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Salaries & employee benefits |
|
|
| 4,493 |
|
|
|
|
| 4,847 |
|
|
|
|
| 4,959 |
|
|
|
|
| 4,651 |
|
|
|
|
| 4,564 |
|
|
| Occupancy and equipment |
|
|
| 1,036 |
|
|
|
|
| 983 |
|
|
|
|
| 1,134 |
|
|
|
|
| 1,055 |
|
|
|
|
| 1,029 |
|
|
| Deposit account related expense |
|
|
| 561 |
|
|
|
|
| 557 |
|
|
|
|
| 571 |
|
|
|
|
| 574 |
|
|
|
|
| 547 |
|
|
| Data processing expense |
|
|
| 425 |
|
|
|
|
| 400 |
|
|
|
|
| 402 |
|
|
|
|
| 403 |
|
|
|
|
| 386 |
|
|
| Professional fees |
|
|
| 226 |
|
|
|
|
| 155 |
|
|
|
|
| 206 |
|
|
|
|
| 236 |
|
|
|
|
| 221 |
|
|
| Marketing expense |
|
|
| 94 |
|
|
|
|
| 141 |
|
|
|
|
| 159 |
|
|
|
|
| 172 |
|
|
|
|
| 133 |
|
|
| FDIC insurance |
|
|
| 90 |
|
|
|
|
| 90 |
|
|
|
|
| 90 |
|
|
|
|
| 90 |
|
|
|
|
| 90 |
|
|
| Deposit tax |
|
|
| 105 |
|
|
|
|
| 99 |
|
|
|
|
| 99 |
|
|
|
|
| 99 |
|
|
|
|
| 99 |
|
|
| Communications expense |
|
|
| 102 |
|
|
|
|
| 126 |
|
|
|
|
| 108 |
|
|
|
|
| 121 |
|
|
|
|
| 64 |
|
|
| Insurance expense |
|
|
| 112 |
|
|
|
|
| 102 |
|
|
|
|
| 104 |
|
|
|
|
| 109 |
|
|
|
|
| 105 |
|
|
| Postage and delivery |
|
|
| 152 |
|
|
|
|
| 153 |
|
|
|
|
| 156 |
|
|
|
|
| 150 |
|
|
|
|
| 163 |
|
|
| Merger expenses |
|
|
| 417 |
|
|
|
|
| 691 |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
| Other |
|
|
| 490 |
|
|
|
|
| 518 |
|
|
|
|
| 709 |
|
|
|
|
| 567 |
|
|
|
|
| 570 |
|
|
| Non-interest expense |
|
|
| 8,303 |
|
|
|
|
| 8,862 |
|
|
|
|
| 8,697 |
|
|
|
|
| 8,227 |
|
|
|
|
| 7,971 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before income taxes 1 |
|
|
| 5,442 |
|
|
|
|
| 6,535 |
|
|
|
|
| 7,693 |
|
|
|
|
| 5,259 |
|
|
|
|
| 4,631 |
|
|
| Income tax expense |
|
|
| 1,259 |
|
|
|
|
| 1,621 |
|
|
|
|
| 1,880 |
|
|
|
|
| 1,223 |
|
|
|
|
| 1,052 |
|
|
| Net income |
| $ |
| 4,183 |
|
|
| $ |
| 4,914 |
|
|
| $ |
| 5,813 |
|
|
| $ |
| 4,036 |
|
|
| $ |
| 3,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average shares – Basic |
|
|
| 7,632,028 |
|
|
|
|
| 7,638,855 |
|
|
|
|
| 7,639,492 |
|
|
|
|
| 7,631,883 |
|
|
|
|
| 7,614,382 |
|
|
| Weighted average shares – Diluted |
|
|
| 7,632,028 |
|
|
|
|
| 7,638,855 |
|
|
|
|
| 7,639,492 |
|
|
|
|
| 7,631,883 |
|
|
|
|
| 7,614,382 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic earnings per common share |
| $ |
| 0.55 |
|
|
| $ |
| 0.64 |
|
|
| $ |
| 0.76 |
|
|
| $ |
| 0.53 |
|
|
| $ |
| 0.47 |
|
|
| Diluted earnings per common share |
| $ |
| 0.55 |
|
|
| $ |
| 0.64 |
|
|
| $ |
| 0.76 |
|
|
| $ |
| 0.53 |
|
|
| $ |
| 0.47 |
|
|
| Cash dividends declared per common share |
| $ |
| 0.05 |
|
|
| $ |
| 0.05 |
|
|
| $ |
| 0.05 |
|
|
| $ |
| 0.05 |
|
|
| $ |
| 0.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Performance Ratios |
|
|
|
|
|
|
|
|
|
|
| Return on average assets |
|
|
| 1.15 |
| % |
|
|
| 1.33 |
| % |
|
|
| 1.59 |
| % |
|
|
| 1.14 |
| % |
|
|
| 1.03 |
| % |
| Return on average equity |
|
|
| 12.45 |
|
|
|
|
| 15.05 |
|
|
|
|
| 17.83 |
|
|
|
|
| 12.66 |
|
|
|
|
| 11.07 |
|
|
| Yield on average earning assets (tax equivalent) |
|
|
| 5.13 |
|
|
|
|
| 4.89 |
|
|
|
|
| 4.37 |
|
|
|
|
| 3.95 |
|
|
|
|
| 3.82 |
|
|
| Cost of interest-bearing liabilities |
|
|
| 2.05 |
|
|
|
|
| 1.44 |
|
|
|
|
| 0.85 |
|
|
|
|
| 0.58 |
|
|
|
|
| 0.53 |
|
|
| Net interest margin (tax equivalent) |
|
|
| 3.58 |
|
|
|
|
| 3.82 |
|
|
|
|
| 3.73 |
|
|
|
|
| 3.51 |
|
|
|
|
| 3.42 |
|
|
| Efficiency ratio 2 |
|
|
| 54.77 |
|
|
|
|
| 52.62 |
|
|
|
|
| 57.44 |
|
|
|
|
| 59.02 |
|
|
|
|
| 59.70 |
|
|
| Non-interest expense to average assets |
|
|
| 2.29 |
|
|
|
|
| 2.41 |
|
|
|
|
| 2.38 |
|
|
|
|
| 2.33 |
|
|
|
|
| 2.30 |
|
|
| LIMESTONE BANCORP, INC. Unaudited Financial Information (in thousands, except share and per share data) |
|
|
| As of |
|
|
| 3/31/23 |
|
|
| 12/31/22 |
|
|
| 9/30/22 |
|
|
| 6/30/22 |
|
|
| 3/31/22 |
|
|
|
|
|
|
|
|
|
|
|
|
| Assets |
|
|
|
|
|
|
|
|
|
|
| Loans |
| $ |
| 1,139,208 |
|
|
| $ |
| 1,111,854 |
|
|
| $ |
| 1,127,945 |
|
|
| $ |
| 1,073,815 |
|
|
| $ |
| 1,047,285 |
|
|
| Allowance for credit losses 3 |
|
|
| (14,391 |
| ) |
|
|
| (13,030 |
| ) |
|
|
| (13,031 |
| ) |
|
|
| (12,550 |
| ) |
|
|
| (12,195 |
| ) |
| Net loans |
|
|
| 1,124,817 |
|
|
|
|
| 1,098,824 |
|
|
|
|
| 1,114,914 |
|
|
|
|
| 1,061,265 |
|
|
|
|
| 1,035,090 |
|
|
| Securities held to maturity 3, 4 |
|
|
| 43,185 |
|
|
|
|
| 43,282 |
|
|
|
|
| 43,350 |
|
|
|
|
| 44,205 |
|
|
|
|
| 45,639 |
|
|
| Securities available for sale 4 |
|
|
| 186,978 |
|
|
|
|
| 180,173 |
|
|
|
|
| 181,292 |
|
|
|
|
| 193,022 |
|
|
|
|
| 204,071 |
|
|
| Federal funds sold & interest-bearing deposits |
|
|
| 40,378 |
|
|
|
|
| 37,476 |
|
|
|
|
| 50,940 |
|
|
|
|
| 18,244 |
|
|
|
|
| 22,040 |
|
|
| Cash and due from financial institutions |
|
|
| 7,121 |
|
|
|
|
| 7,159 |
|
|
|
|
| 6,430 |
|
|
|
|
| 7,742 |
|
|
|
|
| 10,009 |
|
|
| Premises and equipment |
|
|
| 21,749 |
|
|
|
|
| 22,103 |
|
|
|
|
| 22,503 |
|
|
|
|
| 22,747 |
|
|
|
|
| 23,043 |
|
|
| Bank owned life insurance |
|
|
| 31,273 |
|
|
|
|
| 31,132 |
|
|
|
|
| 31,032 |
|
|
|
|
| 30,888 |
|
|
|
|
| 30,643 |
|
|
| FHLB Stock |
|
|
| 5,626 |
|
|
|
|
| 5,176 |
|
|
|
|
| 5,176 |
|
|
|
|
| 5,116 |
|
|
|
|
| 5,116 |
|
|
| Deferred taxes, net |
|
|
| 19,689 |
|
|
|
|
| 21,283 |
|
|
|
|
| 23,002 |
|
|
|
|
| 23,343 |
|
|
|
|
| 22,648 |
|
|
| Goodwill |
|
|
| 6,252 |
|
|
|
|
| 6,252 |
|
|
|
|
| 6,252 |
|
|
|
|
| 6,252 |
|
|
|
|
| 6,252 |
|
|
| Intangible assets |
|
|
| 1,669 |
|
|
|
|
| 1,733 |
|
|
|
|
| 1,797 |
|
|
|
|
| 1,861 |
|
|
|
|
| 1,925 |
|
|
| Accrued interest receivable and other assets |
|
|
| 7,694 |
|
|
|
|
| 7,862 |
|
|
|
|
| 7,007 |
|
|
|
|
| 6,383 |
|
|
|
|
| 6,230 |
|
|
| Total Assets |
| $ |
| 1,496,431 |
|
|
| $ |
| 1,462,455 |
|
|
| $ |
| 1,493,695 |
|
|
| $ |
| 1,421,068 |
|
|
| $ |
| 1,412,706 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and Equity |
|
|
|
|
|
|
|
|
|
|
| Certificates of deposit 5 |
| $ |
| 344,697 |
|
|
| $ |
| 290,161 |
|
|
| $ |
| 273,780 |
|
|
| $ |
| 256,141 |
|
|
| $ |
| 260,064 |
|
|
| Interest checking |
|
|
| 291,661 |
|
|
|
|
| 314,082 |
|
|
|
|
| 286,867 |
|
|
|
|
| 269,240 |
|
|
|
|
| 274,054 |
|
|
| Money market |
|
|
| 161,021 |
|
|
|
|
| 179,035 |
|
|
|
|
| 215,450 |
|
|
|
|
| 209,183 |
|
|
|
|
| 216,845 |
|
|
| Savings |
|
|
| 163,357 |
|
|
|
|
| 148,552 |
|
|
|
|
| 154,545 |
|
|
|
|
| 163,573 |
|
|
|
|
| 166,135 |
|
|
| Total interest-bearing deposits |
|
|
| 960,736 |
|
|
|
|
| 931,830 |
|
|
|
|
| 930,642 |
|
|
|
|
| 898,137 |
|
|
|
|
| 917,098 |
|
|
| Demand deposits |
|
|
| 261,582 |
|
|
|
|
| 268,954 |
|
|
|
|
| 287,938 |
|
|
|
|
| 269,425 |
|
|
|
|
| 281,533 |
|
|
| Total deposits |
|
|
| 1,222,318 |
|
|
|
|
| 1,200,784 |
|
|
|
|
| 1,218,580 |
|
|
|
|
| 1,167,562 |
|
|
|
|
| 1,198,631 |
|
|
| FHLB advances |
|
|
| 80,000 |
|
|
|
|
| 70,000 |
|
|
|
|
| 90,000 |
|
|
|
|
| 70,000 |
|
|
|
|
| 30,000 |
|
|
| Junior subordinated debentures |
|
|
| 21,000 |
|
|
|
|
| 21,000 |
|
|
|
|
| 21,000 |
|
|
|
|
| 21,000 |
|
|
|
|
| 21,000 |
|
|
| Subordinated capital note |
|
|
| 25,000 |
|
|
|
|
| 25,000 |
|
|
|
|
| 25,000 |
|
|
|
|
| 25,000 |
|
|
|
|
| 25,000 |
|
|
| Accrued interest payable and other liabilities |
|
|
| 9,722 |
|
|
|
|
| 11,813 |
|
|
|
|
| 10,744 |
|
|
|
|
| 10,888 |
|
|
|
|
| 9,855 |
|
|
| Total liabilities |
|
|
| 1,358,040 |
|
|
|
|
| 1,328,597 |
|
|
|
|
| 1,365,324 |
|
|
|
|
| 1,294,450 |
|
|
|
|
| 1,284,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common stock |
|
|
| 140,639 |
|
|
|
|
| 140,639 |
|
|
|
|
| 140,639 |
|
|
|
|
| 140,639 |
|
|
|
|
| 140,639 |
|
|
| Additional paid-in capital |
|
|
| 26,210 |
|
|
|
|
| 26,312 |
|
|
|
|
| 26,101 |
|
|
|
|
| 25,889 |
|
|
|
|
| 25,733 |
|
|
| Retained deficit |
|
|
| (11,793 |
| ) |
|
|
| (14,954 |
| ) |
|
|
| (19,486 |
| ) |
|
|
| (24,917 |
| ) |
|
|
| (28,571 |
| ) |
| Accumulated other comprehensive loss |
|
|
| (16,665 |
| ) |
|
|
| (18,139 |
| ) |
|
|
| (18,883 |
| ) |
|
|
| (14,993 |
| ) |
|
|
| (9,581 |
| ) |
| Total stockholders’ equity |
|
|
| 138,391 |
|
|
|
|
| 133,858 |
|
|
|
|
| 128,371 |
|
|
|
|
| 126,618 |
|
|
|
|
| 128,220 |
|
|
| Total Liabilities and Stockholders’ Equity |
| $ |
| 1,496,431 |
|
|
| $ |
| 1,462,455 |
|
|
| $ |
| 1,493,695 |
|
|
| $ |
| 1,421,068 |
|
|
| $ |
| 1,412,706 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ending shares outstanding |
|
|
| 7,629,402 |
|
|
|
|
| 7,638,633 |
|
|
|
|
| 7,639,033 |
|
|
|
|
| 7,640,680 |
|
|
|
|
| 7,622,157 |
|
|
| Book value per common share |
| $ |
| 18.14 |
|
|
| $ |
| 17.52 |
|
|
| $ |
| 16.80 |
|
|
| $ |
| 16.57 |
|
|
| $ |
| 16.82 |
|
|
| Tangible book value per common share 6 |
|
|
| 17.10 |
|
|
|
|
| 16.48 |
|
|
|
|
| 15.75 |
|
|
|
|
| 15.51 |
|
|
|
|
| 15.75 |
|
|
| LIMESTONE BANCORP, INC. Unaudited Financial Information (in thousands, except share and per share data) |
|
|
| As of |
|
|
| 3/31/23 |
|
|
| 12/31/22 |
|
|
| 9/30/22 |
|
|
| 6/30/22 |
|
|
| 3/31/22 |
| Average Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
| Assets |
| $ |
| 1,470,834 |
|
|
| $ |
| 1,461,199 |
|
|
| $ |
| 1,451,647 |
|
|
| $ |
| 1,417,087 |
|
|
| $ |
| 1,407,030 |
|
|
| Loans |
|
|
| 1,120,482 |
|
|
|
|
| 1,110,078 |
|
|
|
|
| 1,096,478 |
|
|
|
|
| 1,053,057 |
|
|
|
|
| 1,028,546 |
|
|
| Earning assets |
|
|
| 1,404,469 |
|
|
|
|
| 1,395,860 |
|
|
|
|
| 1,378,771 |
|
|
|
|
| 1,339,555 |
|
|
|
|
| 1,326,234 |
|
|
| Deposits |
|
|
| 1,186,981 |
|
|
|
|
| 1,204,804 |
|
|
|
|
| 1,203,098 |
|
|
|
|
| 1,184,426 |
|
|
|
|
| 1,199,174 |
|
|
| Long-term debt and advances |
|
|
| 136,389 |
|
|
|
|
| 114,586 |
|
|
|
|
| 108,229 |
|
|
|
|
| 93,968 |
|
|
|
|
| 67,667 |
|
|
| Interest bearing liabilities |
|
|
| 1,062,281 |
|
|
|
|
| 1,037,991 |
|
|
|
|
| 1,029,131 |
|
|
|
|
| 1,000,367 |
|
|
|
|
| 996,710 |
|
|
| Stockholders’ equity |
|
|
| 136,242 |
|
|
|
|
| 129,560 |
|
|
|
|
| 129,346 |
|
|
|
|
| 127,827 |
|
|
|
|
| 131,097 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Asset Quality Data |
|
|
|
|
|
|
|
|
|
|
| Nonaccrual loans |
| $ |
| 879 |
|
|
| $ |
| 856 |
|
|
| $ |
| 1,054 |
|
|
| $ |
| 3,007 |
|
|
| $ |
| 3,447 |
|
|
| Troubled debt restructurings on accrual |
|
|
| — |
|
|
|
|
| 133 |
|
|
|
|
| 146 |
|
|
|
|
| 150 |
|
|
|
|
| 333 |
|
|
| Loan 90 days or more past due still on accrual |
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
| Total non-performing loans |
|
|
| 879 |
|
|
|
|
| 989 |
|
|
|
|
| 1,200 |
|
|
|
|
| 3,157 |
|
|
|
|
| 3,780 |
|
|
| Real estate acquired through foreclosures |
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
| Other repossessed assets |
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
| Total non-performing assets |
| $ |
| 879 |
|
|
| $ |
| 989 |
|
|
| $ |
| 1,200 |
|
|
| $ |
| 3,157 |
|
|
| $ |
| 3,780 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-performing loans to total loans |
|
|
| 0.08 |
| % |
|
|
| 0.09 |
| % |
|
|
| 0.11 |
| % |
|
|
| 0.29 |
| % |
|
|
| 0.36 |
| % |
| Non-performing assets to total assets |
|
|
| 0.06 |
|
|
|
|
| 0.07 |
|
|
|
|
| 0.08 |
|
|
|
|
| 0.22 |
|
|
|
|
| 0.27 |
|
|
| Allowance for credit losses to non-performing loans |
|
|
| 1,637.20 |
|
|
|
|
| 1,317.49 |
|
|
|
|
| 1,085.92 |
|
|
|
|
| 397.53 |
|
|
|
|
| 322.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Allowance for credit losses to total loans 3 |
|
|
| 1.26 |
| % |
|
|
| 1.17 |
| % |
|
|
| 1.16 |
| % |
|
|
| 1.17 |
| % |
|
|
| 1.16 |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
| Loan Charge-off Data |
|
|
|
|
|
|
|
|
|
|
| Loans charged off |
| $ |
| (130 |
| ) |
| $ |
| (158 |
| ) |
| $ |
| (86 |
| ) |
| $ |
| (367 |
| ) |
| $ |
| (227 |
| ) |
| Recoveries |
|
|
| 237 |
|
|
|
|
| 27 |
|
|
|
|
| 1,817 |
|
|
|
|
| 272 |
|
|
|
|
| 141 |
|
|
| Net (charge-offs) recoveries |
| $ |
| 107 |
|
|
| $ |
| (131 |
| ) |
| $ |
| 1,731 |
|
|
| $ |
| (95 |
| ) |
| $ |
| (86 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
| Loans by Risk Category 7 |
|
|
|
|
|
|
|
|
|
|
| Pass |
| $ |
| 1,113,804 |
|
|
| $ |
| 1,089,330 |
|
|
| $ |
| 1,116,009 |
|
|
| $ |
| 1,052,624 |
|
|
| $ |
| 1,023,039 |
|
|
| Watch |
|
|
| 17,450 |
|
|
|
|
| 15,189 |
|
|
|
|
| 3,177 |
|
|
|
|
| 6,426 |
|
|
|
|
| 8,567 |
|
|
| Special Mention |
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
| Substandard |
|
|
| 7,954 |
|
|
|
|
| 7,335 |
|
|
|
|
| 8,759 |
|
|
|
|
| 14,765 |
|
|
|
|
| 15,679 |
|
|
| Doubtful |
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
| Total |
| $ |
| 1,139,208 |
|
|
| $ |
| 1,111,854 |
|
|
| $ |
| 1,127,945 |
|
|
| $ |
| 1,073,815 |
|
|
| $ |
| 1,047,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans by Past Due Status |
|
|
|
|
|
|
|
|
|
|
| Past due loans: |
|
|
|
|
|
|
|
|
|
|
| 30 – 59 days |
| $ |
| 2,015 |
|
|
| $ |
| 1,919 |
|
|
| $ |
| 300 |
|
|
| $ |
| 600 |
|
|
| $ |
| 1,108 |
|
|
| 60 – 89 days |
|
|
| 207 |
|
|
|
|
| 268 |
|
|
|
|
| 57 |
|
|
|
|
| 209 |
|
|
|
|
| 89 |
|
|
| 90 days or more |
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
| Nonaccrual loans |
|
|
| 879 |
|
|
|
|
| 856 |
|
|
|
|
| 1,054 |
|
|
|
|
| 3,007 |
|
|
|
|
| 3,447 |
|
|
| Total past due and nonaccrual loans |
| $ |
| 3,101 |
|
|
| $ |
| 3,043 |
|
|
| $ |
| 1,411 |
|
|
| $ |
| 3,816 |
|
|
| $ |
| 4,644 |
|
|
| LIMESTONE BANCORP, INC. Unaudited Financial Information (in thousands, except share and per share data) |
|
|
| As of |
| 3/31/23 |
|
|
| 12/31/22 |
|
|
| 9/30/22 |
|
|
| 6/30/22 |
|
|
| 3/31/22 |
| Risk-based Capital Ratios - Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tier I leverage ratio |
| 10.72 |
| % |
|
|
| 10.44 |
| % |
|
|
| 10.04 |
| % |
|
|
| 9.68 |
| % |
|
|
| 9.38 |
| % |
| Common equity Tier I risk-based capital ratio |
| 10.23 |
|
|
|
|
| 10.14 |
|
|
|
|
| 9.46 |
|
|
|
|
| 9.16 |
|
|
|
|
| 8.93 |
|
|
| Tier I risk-based capital ratio |
| 11.81 |
|
|
|
|
| 11.71 |
|
|
|
|
| 10.89 |
|
|
|
|
| 10.49 |
|
|
|
|
| 10.19 |
|
|
| Total risk-based capital ratio |
| 14.76 |
|
|
|
|
| 14.63 |
|
|
|
|
| 13.75 |
|
|
|
|
| 13.39 |
|
|
|
|
| 13.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Risk-based Capital Ratios – Limestone Bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tier I leverage ratio |
| 11.80 |
| % |
|
|
| 11.59 |
| % |
|
|
| 11.56 |
| % |
|
|
| 11.39 |
| % |
|
|
| 11.20 |
| % |
| Common equity Tier I risk-based capital ratio |
| 13.00 |
|
|
|
|
| 13.01 |
|
|
|
|
| 12.55 |
|
|
|
|
| 12.38 |
|
|
|
|
| 12.21 |
|
|
| Tier I risk-based capital ratio |
| 13.00 |
|
|
|
|
| 13.01 |
|
|
|
|
| 12.55 |
|
|
|
|
| 12.38 |
|
|
|
|
| 12.21 |
|
|
| Total risk-based capital ratio |
| 14.08 |
|
|
|
|
| 14.01 |
|
|
|
|
| 13.53 |
|
|
|
|
| 13.35 |
|
|
|
|
| 13.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FTE employees, end of period |
| 208 |
|
|
|
|
| 222 |
|
|
|
|
| 226 |
|
|
|
|
| 225 |
|
|
|
|
| 222 |
|
|
Footnotes:
(1) Pretax, pre-provision income (PTPI) is a non-GAAP financial measure calculated by adjusting pretax income or income before income taxes to add back provision for credit losses. Management believes that PTPI is a useful financial measure as it enables the assessment of the Company’s ability to generate earnings to cover credit losses through a credit cycle and provides an additional basis for comparing results of operations between periods by isolating the impact of provision for credit losses, which can vary significantly between periods.
|
|
|
|
|
|
| Three Months Ended |
|
|
| 3/31/23 |
|
|
| 12/31/22 |
|
|
| 9/30/22 |
| 6/30/22 |
|
|
| 3/31/22 |
| Pretax, Pre-Provision Income |
| (in thousands) |
|
|
|
|
| Income before income taxes |
| $ |
| 5,442 |
|
|
| $ |
| 6,535 |
|
|
| $ |
| 7,693 |
|
|
| $ |
| 5,259 |
|
|
| $ |
| 4,631 |
| Provision for credit losses |
|
|
| 654 |
|
|
|
|
| 130 |
|
|
|
|
| (1,250 |
| ) |
|
|
| 450 |
|
|
|
|
| 750 |
| Pretax, pre-provision income |
|
|
| 6,096 |
|
|
|
|
| 6,665 |
|
|
|
|
| 6,443 |
|
|
|
|
| 5,709 |
|
|
|
|
| 5,381 |
(2) 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 from the calculation net gains on the sale of securities and expenses disclosed from time to time as non-recurring in nature. Management believes this provides a reasonable measure of primary banking expenses relative to primary banking revenue.
|
|
|
|
|
|
| Three Months Ended |
|
|
| 3/31/23 |
| 12/31/22 |
| 9/30/22 |
| 6/30/22 |
| 3/31/22 |
| Efficiency Ratio |
| (in thousands) |
|
|
|
|
| Net interest income |
| $ |
| 12,339 |
|
|
| $ |
| 13,372 |
|
|
| $ |
| 12,912 |
|
|
| $ |
| 11,680 |
|
|
| $ |
| 11,114 |
|
|
| Non-interest income |
|
|
| 2,060 |
|
|
|
|
| 2,155 |
|
|
|
|
| 2,228 |
|
|
|
|
| 2,256 |
|
|
|
|
| 2,238 |
|
|
| Less: Net gain (loss) on securities |
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| (3 |
| ) |
|
|
| — |
|
|
| Revenue used for efficiency ratio |
|
|
| 14,399 |
|
|
|
|
| 15,527 |
|
|
|
|
| 15,140 |
|
|
|
|
| 13,939 |
|
|
|
|
| 13,352 |
|
|
| Non-interest expense |
|
|
| 8,303 |
|
|
|
|
| 8,862 |
|
|
|
|
| 8,697 |
|
|
|
|
| 8,227 |
|
|
|
|
| 7,971 |
|
|
| Less: Merger expenses |
|
|
| 417 |
|
|
|
|
| 691 |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
| Expenses used for efficiency ratio |
|
|
| 7,886 |
|
|
|
|
| 8,171 |
|
|
|
|
| 8,697 |
|
|
|
|
| 8,227 |
|
|
|
|
| 7,971 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Efficiency ratio |
|
|
| 54.77 |
| % |
|
|
| 52.62 |
| % |
|
|
| 57.44 |
| % |
|
|
| 59.02 |
| % |
|
|
| 59.70 |
| % |
(3) Effective January 1, 2023, the Company began accounting for credit losses under ASC 326, Financial Instruments – Credit Losses (CECL). Adoption resulted in the establishment of an allowance for credit losses for held to maturity securities of $30,000, an increase in allowance for credit losses for loans of $586,000, an increase of the allowance for credit losses related to unfunded commitments of $24,000, which is recorded in other liabilities, and a reduction in retained earnings of $480,000, net of tax.
(4) Investment Securities – The following table sets forth the amortized cost and fair value of the securities portfolio at the dates indicated.
|
|
|
|
| March 31, 2023 |
|
|
| December 31, 2022 |
|
|
|
|
| Amortized |
|
|
| Allowance |
|
|
| Gross |
|
|
| Gross |
|
|
| Fair |
|
|
| Amortized |
|
|
| Gross |
|
|
| Gross |
|
|
| Fair |
|
|
|
|
| (dollars in thousands) |
| Securities available for sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. Government and federal agencies |
|
|
| $ |
| 30,987 |
|
|
| $ |
| — |
|
|
| $ |
| — |
|
|
| $ |
| (2,324 |
| ) |
|
|
| $ |
| 28,663 |
|
|
| $ |
| 24,541 |
|
|
| $ |
| — |
|
|
| $ |
| (2,784 |
| ) |
|
|
| $ |
| 21,757 |
| Agency mortgage-backed residential |
|
|
|
|
| 78,620 |
|
|
|
|
| — |
|
|
|
|
| 51 |
|
|
|
|
| (9,397 |
| ) |
|
|
|
|
| 69,274 |
|
|
|
|
| 80,283 |
|
|
|
|
| 9 |
|
|
|
|
| (10,387 |
| ) |
|
|
|
|
| 69,905 |
| Collateralized loan obligations |
|
|
|
|
| 48,192 |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| (2,094 |
| ) |
|
|
|
|
| 46,098 |
|
|
|
|
| 48,202 |
|
|
|
|
| — |
|
|
|
|
| (2,161 |
| ) |
|
|
|
|
| 46,041 |
| Corporate bonds |
|
|
|
|
| 45,526 |
|
|
|
|
| — |
|
|
|
|
| 116 |
|
|
|
|
| (2,699 |
| ) |
|
|
|
|
| 42,943 |
|
|
|
|
| 45,512 |
|
|
|
|
| — |
|
|
|
|
| (3,042 |
| ) |
|
|
|
|
| 42,470 |
| Total available for sale |
|
|
| $ |
| 203,325 |
|
|
| $ |
| — |
|
|
| $ |
| 167 |
|
|
| $ |
| (16,514 |
| ) |
|
|
| $ |
| 186,978 |
|
|
| $ |
| 198,538 |
|
|
| $ |
| 9 |
|
|
| $ |
| (18,374 |
| ) |
|
|
| $ |
| 180,173 |
|
|
|
|
| Amortized |
|
|
| Allowance |
|
|
| Gross |
|
|
| Gross |
|
|
| Fair |
|
|
| Amortized |
|
|
| Gross |
|
|
| Gross |
|
|
| Fair |
|
|
|
|
| (dollars in thousands) |
| Securities held to maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| State and municipal |
|
|
| $ |
| 43,215 |
|
|
| $ |
| (30 |
| ) |
|
|
| $ |
| 1 |
|
|
| $ |
| (7,637 |
| ) |
|
|
| $ |
| 35,549 |
|
|
| $ |
| 43,282 |
|
|
| $ |
| — |
|
|
| $ |
| (8,386 |
| ) |
|
|
| $ |
| 34,896 |
| Total held to maturity |
|
|
| $ |
| 43,215 |
|
|
| $ |
| (30 |
| ) |
|
|
| $ |
| 1 |
|
|
| $ |
| (7,637 |
| ) |
|
|
| $ |
| 35,549 |
|
|
| $ |
| 43,282 |
|
|
| $ |
| — |
|
|
| $ |
| (8,386 |
| ) |
|
|
| $ |
| 34,896 |
(5) The following table denotes contractual time deposit maturities and average rates as of March 31, 2023:
|
|
|
|
| Non-Brokered Time Deposits |
|
|
| Brokered Time Deposits |
| Maturity Quarter |
|
|
| As of |
|
|
| Weighted |
|
|
| As of |
|
|
| Weighted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Q2-2023 |
|
|
|
|
| 50,586 |
|
|
|
1.62 |
|
% |
|
|
|
|
| 95,251 |
|
|
| 4.29 |
| % |
| Q3-2023 |
|
|
|
|
| 43,303 |
|
|
| 1.70 |
|
|
|
|
|
|
| 45,933 |
|
|
| 5.09 |
|
|
| Q4-2023 |
|
|
|
|
| 40,825 |
|
|
| 2.32 |
|
|
|
|
|
|
| — |
|
|
| 0.00 |
|
|
| Q1-2024 |
|
|
|
|
| 21,062 |
|
|
| 0.67 |
|
|
|
|
| — |
|
|
| 0.00 |
|
|
| Thereafter |
|
|
|
|
| 47,737 |
|
|
| 0.72 |
|
|
|
|
|
|
| — |
|
|
| 0.00 |
|
|
| Total time deposits |
|
|
| $ |
| 203,513 |
|
|
| 1.44 |
| % |
|
|
| $ |
| 141,184 |
|
|
| 4.55 |
| % |
(6) Tangible book value per common share is a non-GAAP financial measure derived from GAAP based amounts. Tangible book value per common share is calculated by excluding the balance of goodwill and other intangible assets from common stockholders’ equity. Tangible book value per common share is calculated by dividing tangible common equity by common shares outstanding, as compared to book value per common share, which is calculated by dividing common stockholders’ equity by common shares outstanding. Management believes this is consistent with bank regulatory agency treatment, which excludes goodwill and other intangible assets from the calculation of risk-based capital.
|
|
| As of |
|
|
| 3/31/23 |
|
|
| 12/31/22 |
|
|
| 9/30/22 |
|
|
| 6/30/22 |
|
|
| 3/31/22 |
| Tangible Book Value Per Share |
| (in thousands, except share and per share data) |
|
|
|
|
| Common stockholders’ equity |
| $ |
| 138,391 |
|
|
| $ |
| 133,858 |
|
|
| $ |
| 128,371 |
|
|
| $ |
| 126,618 |
|
|
| $ |
| 128,220 |
| Less: Goodwill |
|
|
| 6,252 |
|
|
|
|
| 6,252 |
|
|
|
|
| 6,252 |
|
|
|
|
| 6,252 |
|
|
|
|
| 6,252 |
| Less: Intangible assets |
|
|
| 1,669 |
|
|
|
|
| 1,733 |
|
|
|
|
| 1,797 |
|
|
|
|
| 1,861 |
|
|
|
|
| 1,925 |
| Tangible common equity |
|
|
| 130,470 |
|
|
|
|
| 125,873 |
|
|
|
|
| 120,322 |
|
|
|
|
| 118,505 |
|
|
|
|
| 120,043 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares outstanding |
|
|
| 7,629,402 |
|
|
|
|
| 7,638,633 |
|
|
|
|
| 7,639,033 |
|
|
|
|
| 7,640,680 |
|
|
|
|
| 7,622,157 |
| Tangible book value per common share |
| $ |
| 17.10 |
|
|
| $ |
| 16.48 |
|
|
| $ |
| 15.75 |
|
|
| $ |
| 15.51 |
|
|
| $ |
| 15.75 |
| Book value per common share |
|
|
| 18.14 |
|
|
|
|
| 17.52 |
|
|
|
|
| 16.80 |
|
|
|
|
| 16.57 |
|
|
|
|
| 16.82 |
(7) Loans by Risk Category reflect management’s risk ratings based on categories aligned with the bank regulatory definitions.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230424005748/en/
John T. Taylor
Chief Executive Officer
(502) 499-4800