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Item 5. Market for Registrant’s Common Equity

2022-03-30 compared with 2021-03-31 · 2 added, 101 removed, 16 unchanged (87% of the section changed)

9 unchanged sentences

Issuer Purchases of Equity Securities.

On July 8, 2020, the Company announced that the Board of Directors authorized the repurchase of up to 676,311 shares, or approximately 5% of the Company’s then outstanding common shares, which was completed during November 2020.

On October 21, 2020, the Board of Directors of the Company authorized a second stock repurchase program for up to 664,969 shares, or approximately 5% of its outstanding shares.

The repurchase program commenced on November 16, 2020 and expires on November 16, 2021, unless completed sooner.

On May 19, 2021, the Board of Directors authorized a third stock repurchase program for up to 1,263,841 shares, or approximately 10% of its outstanding shares.

This repurchase program commenced on July 3, 2021, and will expire on July 3, 2022 unless completed sooner.

The following table sets forth information with respect to our repurchases of our outstanding common shares during the three months ended December 31, 2021:

4 unchanged sentences

45,945 $ 15.97 45,945

Selected Financial Data

SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA

The Financial Condition Data and Operating Data as of and for the years ended December 31, 2020 and 2019 are derived from the audited financial statements and related notes included elsewhere in this Form 10-K.

The Financial Condition Data and Operating Data as of and for the years ended December 31, 2018, 2017 and 2016 are derived from audited financial statements not included in this Form 10-K.

The following information is only a summary and is qualified in its entirety by the detailed information included elsewhere herein and should be read along with Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations” and Item 8, “Financial Statements and Supplementary Data” of this Form 10-K.

At December 31,

2020 2019 2018 2017 2016

(In thousands)

Selected Financial Condition Data:

Total assets $ 1,084,193 $ 986,042 $ 849,618 $ 753,621 $ 693,956

Loans and leases, net (1)

736,400 687,258 654,755 557,929 461,990

Securities available for sale, at fair value 244,505 201,784 122,482 118,357 144,214

Investment securities, at amortized cost 12,225 15,917 21,080 24,892 27,360

Federal Reserve Bank and FHLB stock 9,050 7,600 6,561 6,717 6,224

Deposits 693,045 617,219 620,637 560,395 516,302

FHLB advances 170,000 154,000 136,100 104,000 92,300

Stockholders’ equity 192,713 187,787 85,853 81,798 78,105

Years Ended December 31,

2020 2019 2018 2017 2016

(In thousands)

Selected Operations Data:

Total interest income $ 42,342 $ 41,558 $ 35,199 $ 29,104 $ 26,686

Total interest expense 9,393 11,157 7,752 5,250 4,068

Net interest income 32,949 30,401 27,447 23,854 22,618

Provision for loan and lease losses 3,770 2,600 1,680 1,370 1,155

Net interest income after provision for loan and lease losses 29,179 27,801 25,767 22,484 21,463

Service charges on deposit accounts 731 1,078 1,115 1,111 1,157

Card fee income 843 749 698 644 673

Loan and lease servicing fees 382 144 335 208 84

Gain on loan and lease sales 3,633 647 459 794 712

Gain on sales of securities 196 98 15 96 473

Other income 1,540 1,144 1,671 1,662 1,491

Total non-interest income 7,325 3,860 4,294 4,515 4,590

Total non-interest expenses 24,009 51,038 23,105 21,312 21,574

Income (loss) before provision (benefit) for income taxes 12,495 (19,377) 6,956 5,687 4,479

Provision (benefit) for income taxes (2)

2,477 (5,293) 1,278 2,972 1,075

Net income (loss) (2)

$ 10,018 $ (14,084) $ 5,678 $ 2,715 $ 3,404

(1) Net of allowances for loan and lease losses, loans in process and deferred loan fees.

(2) The Tax Cuts and Jobs Act (“Tax Act”) was enacted on December 22, 2017 reducing our federal corporate tax rate from 34% to 21%, effective January 1, 2018.

As a result of the Tax Act, our provision for income taxes and net income in 2018 were positively impacted by a $676,000 tax benefit related to tax rate changes, while our provision for income taxes and net income in 2017 were negatively impacted by an additional $1.5 million in tax expense related to an adjustment to our deferred tax asset.

At or For the

Years Ended December 31,

2020 2019 2018 2017 2016

Selected Financial Ratios and Other Data:

Performance ratios:

Return on average assets (ratio of net income (loss) to average total assets) 0.95 % (1.48 %) 0.71 % 0.38 % 0.50 %

Return on average equity (ratio of net income (loss) to average equity) 5.21 % (10.77 %) 6.89 % 3.36 % 4.28 %

Yield on interest-earning assets 4.14 % 4.57 % 4.58 % 4.24 % 4.14 %

Rate paid on interest-bearing liabilities 1.24 % 1.55 % 1.18 % 0.92 % 0.78 %

Interest rate spread information:

Average during period 2.90 % 3.02 % 3.40 % 3.32 % 3.36 %

End of period 3.17 % 2.87 % 3.11 % 3.21 % 3.27 %

Net interest margin (1)

3.22 % 3.34 % 3.57 % 3.48 % 3.51 %

Operating expense to average total assets 2.28 % 5.36 % 2.89 % 2.96 % 3.18 %

Average interest-earning assets to average interest-bearing liabilities 134.41 % 126.54 % 117.01 % 120.20 % 124.13 %

Efficiency ratio (2)

59.91 % 147.36 % 71.84 % 73.22 % 78.20 %

Asset quality ratios:

Non-performing assets to total assets (3)

0.45 % 0.39 % 0.56 % 0.60 % 1.63 %

Non-performing loans and leases to total gross loans and leases (4)

0.64 % 0.55 % 0.69 % 0.80 % 1.62 %

Allowance for loan and lease losses to non-performing loans and leases (4)

220.57 % 185.97 % 122.40 % 106.36 % 71.31 %

Allowance for loan and lease losses to loans and leases receivable 1.42 % 1.02 % 0.85 % 0.85 % 1.15 %

Net charge-offs to average outstanding loans and leases during the period 0.04 % 0.16 % 0.14 % 0.38 % 0.23 %

Capital ratios:

Common equity tier 1 capital (to risk weighted assets) (5)

20.64 % 18.54 % 11.49 % 11.80 % 13.10 %

Tier 1 leverage (core) capital (to adjusted tangible assets) (5)

14.28 % 14.56 % 10.06 % 10.30 % 9.80 %

Tier 1 risk-based capital (to risk weighted assets) (5)

20.64 % 18.54 % 11.49 % 11.80 % 13.10 %

Total risk-based capital (to risk weighted assets) (5)

21.90 % 19.46 % 12.26 % 12.60 % 14.10 %

Equity to total assets at end of period 17.85 % 19.04 % 10.11 % 10.85 % 11.26 %

Average equity to average assets 18.25 % 13.75 % 10.30 % 11.22 % 11.71 %

Per share data:

Basic earnings per share 0.82 (1.27) — — —

Diluted earnings per share 0.82 (1.27) — — —

Cash dividends paid 0.15 — — — —

Book value at year end 14.61 13.88 — — —

Tangible book value (6)

14.61 13.88 — — —

Number of full-service offices 12 12 12 12 11

Full-time equivalent employees 170 166 172 174 173

_____________________

(1) Net interest income divided by average interest earning assets.

(2) Total other (non-interest) expenses as a percentage of net interest income (on a tax equivalent basis) and total other (non-interest) income, excluding net securities transactions.

(3) Non-performing assets consist of non-accruing loans and leases, accruing loans and leases more than 90 days past due and foreclosed assets.

(4) Non-performing loans and leases consist of non-accruing loans and leases and accruing loans and leases more than 90 days past due.

(5) Capital ratios are for First Bank Richmond.

(6) Tangible book value per share is a non-GAAP measure used by management and others within the financial services industry.

Tangible book value per share is calculated by dividing tangible common equity by the number of shares outstanding.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 5. Market for Registrant’s Common Equity