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Revere Bank Announces Third Quarter 2018 Record Earnings – Net Income of $7 Million Increased 37% Over the Third Quarter 2017

ROCKVILLE, Md., Nov. 09, 2018 (GLOBE NEWSWIRE) -- Revere Bank (the “Bank”) (OTCQX: REVB) today reported record quarterly net income of $7.01 million for the quarter ended September 30, 2018, a 36.8% increase compared to $5.12 million for the quarter ended September 30, 2017.  Net income per basic common share for the third quarter of 2018 was $0.68 compared to $0.53 for the same period in 2017, an increase of 28.3%.  Net income per diluted common share increased 30.0% to $0.65 for the third quarter of 2018 compared to $0.50 for the same period in 2017. 

For the nine months ended September 30, 2018, net income was $20.42 million, a 51.1% increase compared to $13.51 million for the nine months ended September 30, 2017.  Net income per basic common share for the nine months ended September 30, 2018, was $2.02 compared to $1.39 for the same period in 2017, an increase of 45.3%.  Net income per diluted common share increased 47.0% to $1.94 for the nine months ended September 30, 2018, compared to $1.32 for the same period in 2017. 

Quarterly Highlights

  • Closed a common stock offering of 1.61 million shares with net proceeds of $44.1 million.
  • Began trading on the OTCQX Best Market under the symbol “REVB”.
  • Grew pretax net income by 5.4% compared to the second quarter of 2018.
  • Period end loans grew 13.9%, or $243.9 million, compared to the third quarter of 2017, and grew 1.8%, or $36.2 million, compared to the second quarter of 2018.
  • Period end deposits grew 10.9%, or $191.7 million, compared to the third quarter of 2017 and grew 2.2%, or $41.9 million, compared to the second quarter of 2018.  Core deposits grew 3.5%, or $63.9 million, compared to the second quarter of 2018 as we allowed $22.0 million in brokered deposits to run off during the quarter.

Ken Cook, Co-President and CEO, said, “We are pleased to report continued strong pretax and net income trends on both a year-over-year and linked-quarter basis.  Furthermore, we continue to grow loans and deposits and maintain very strong credit quality as we, and the industry, manage through rising short-term interest rates and a flattening yield curve. Our future is bright and our loan and deposit pipelines are strong.”

Drew Flott, Co-President and CEO, added, “The success of our $44.1 million capital raise has strengthened our capital position. This, combined with our continually increasing earnings power, positions us to maintain strong capital ratios as we continue to achieve solid growth into the future.  We are also excited with our listing on the OTCQX Best Market under the symbol REVB.  The OTCQX provides our shareholders and the investment community with increased liquidity and access to our stock.”

Earnings and Growth Highlights

 
In thousands, except per share data 3Q 2018   2Q 2018   3Q 2017        
Loans $   1,997,511   $   1,961,343   $   1,753,601        
Deposits $   1,950,385   $   1,908,494   $   1,758,726        
              YTD 2018   YTD 2017
Pre-tax income $   9,451   $   8,964   $   8,083   $   27,135   $   21,350
Net Income $   7,006   $   6,850   $   5,122   $   20,415   $   13,509
EPS $   0.68   $   0.68   $   0.53   $   2.02   $   1.39
Diluted EPS $   0.65   $   0.65   $   0.50   $   1.94   $   1.32
 
                   

Third quarter net income increased $1.88 million or 36.8% compared to the third quarter of 2017, and $156 thousand, or 2.3%, compared to the second quarter of 2018. Our third quarter diluted EPS remained unchanged compared to the second quarter of 2018, despite our increased net income, due to the increased shares outstanding from our recent successful capital raise and the exercise of stock options.  When compared to the third quarter of 2017, diluted EPS increased $0.15 per share, or 30.0%, as a result of increased pre-tax income of 16.9% and a decrease in tax expense related to the Tax Cuts and Jobs Act (“Tax Act”) effective January 1, 2018.

For the nine months ended September 30, 2018, net income increased $6.91 million, or 51.1%, compared to the same period of 2017.  During the period diluted EPS increased $0.62 per share, or 47.0%, as a result of increased pre-tax net income of 27.1% and a decrease in tax expense due to the Tax Act.

Income Statement Review

Net interest income

                     
In thousands   3Q 2018   2Q 2018   3Q 2017   YTD 2018   YTD 2017
Interest income   $   27,403     $   25,766     $   22,940     $   77,451     $   64,922  
Interest expense       6,559         5,364         4,340         16,767         11,990  
Net interest income   $   20,844     $   20,402     $   18,600     $   60,684     $   52,932  
                     
Yield on interest-earning assets     4.85 %     4.88 %     4.66 %     4.82 %     4.61 %
Cost of interest-bearing liabilities     1.51 %     1.32 %     1.13 %     1.35 %     1.08 %
Net Interest margin     3.69 %     3.87 %     3.78 %     3.77 %     3.76 %
                     
 

Our net interest income continues to grow and drive increased earnings. Our third quarter net interest income increased 12.1% compared to the same period last year and 2.2% compared to the prior quarter. Year to date net interest income is up 14.6% compared to the same period last year.

On a year-to-date basis our net interest margin increased by one basis point from last year to 3.77%. Our current quarter’s net interest margin decreased by 18 basis points from the prior quarter and nine basis points from the same period last year.  This decrease was primarily the result of an increase in the cost of funds due to an increase in short term market rates, the success of a third quarter CD campaign, and a change in our interest-earning asset mix.  Going forward we expect these factors to be mitigated as the excess liquid funds from the CD campaign and our equity raise are deployed into higher earning assets such as loans.  We continue to focus on improving the net interest margin and note that about one third of our loan portfolio will reprice over the next twelve months.

Non-interest income and Non-interest expense

 
Dollars in thousands 3Q 2018   2Q 2018   3Q 2017   YTD 2018   YTD 2017
Non-interest income $   433     $   604     $   495     $   1,621     $   1,610  
Non-interest expense $   11,181     $   10,889     $   10,229     $   32,419     $   30,684  
                   
Efficiency ratio   52.55 %     51.84 %     53.57 %     52.03 %     56.26 %
 
                   

Non-interest income was $433 thousand for the third quarter, a decrease of $62 thousand, or 12.5%, compared to the third quarter of 2017, and $171 thousand, or 28.3%, compared to the second quarter of 2018.  This decrease was primarily caused by a decrease in mortgage referral fees.  For the nine-month period ended September 30, 2018, total non-interest income increased slightly by 0.7% to $1.62 million, compared to $1.61 million for the nine-month period ended September 30, 2017.

Non-interest expense increased by $952 thousand, or 9.3%, in the third quarter compared to the same period last year and $292 thousand, or 2.7%, compared to the second quarter.  On a year-to-date basis non-interest expense increased $1.74 million, or 5.7%, to $32.4 million, compared to $30.7 million during the first nine months of 2017. These increases were driven primarily by an increase in the number of employees to manage our continued growth and a significant investment in a brand identity marketing campaign.  While we maintain strict control of our operating expenses, we also know the importance of investing in increased future earnings and growth.

For the third quarter our efficiency ratio improved to 52.55% compared to the same period last year and improved on a year- to-date basis to 52.03% from 56.26% for the first nine months of 2017.  The improvement primarily reflects continued economies of scale as we grow and to a lesser extent a reduction in merger and acquisition expense during the period.  Compared to the prior quarter our efficiency ratio increased to 52.55% from 51.84% primarily due to increased marketing costs.

 
  3Q 2018   2Q 2018   3Q 2017
Return on average assets (annualized) 1.21 %   1.26 %   0.99 %
Return on average equity (annualized) 13.00 %   13.71 %   11.08 %
 
           

Return on assets and equity increased 22 basis points and 192 basis points, respectively, during the quarter compared to the same period last year.  These increases for the third quarter over the prior year period were primarily driven by increased earnings and the impact of the Tax Act.  Return on assets and return on equity declined slightly by five basis points and 71 basis points, respectively, when compared to the prior quarter. These decreases were caused in part by an increase in short term liquidity from a successful CD campaign and from the capital raise and by investing in the above referenced brand identity campaign.

Balance Sheet Review

 
Dollars in thousands Sep. 2018   Jun. 2018   Dec. 2017   Sep. 2017
Assets $   2,317,700   $   2,250,319   $   2,098,845   $   2,070,939
Loans     1,997,511       1,961,343       1,814,692       1,753,601
Deposits     1,950,385       1,908,494       1,795,092       1,758,726
FHLB borrowings     74,594       102,279       77,827       90,087
Stockholders' equity     255,905       203,772       188,277       185,506
 
               

Asset growth from September 30, 2017, to September 30, 2018, was $247 million, or 11.9%, and was driven primarily by loan growth.  When compared to December 31, 2017, assets increased $219 million, or 10.4%, which was primarily the result of loan growth.  Assets increased $67 million compared to the prior quarter, or 3.0%, due to loan growth and an increase in cash equivalents from the recent capital raise.

Loans increased $244 million, or 13.9%, compared to September 30, 2017, and were driven primarily by an increase in commercial real estate loans and commercial loans.  During the nine month period ended September 30, 2018, loans increased $183 million, or 10.1%, primarily driven by an increase in commercial real estate loans as well as an increase in commercial loans. Compared to June 30, 2018, loans increased $36 million, or 1.8%, primarily due to commercial real estate loan growth.

Deposits increased $192 million, or 10.9%, compared to September 30, 2017, primarily due to increases in money market deposits.  During the nine-month period ended September 30, 2018, deposits increased $155 million, or 8.7%, primarily due to increases in money market deposits.  Compared to June 30, 2018, deposits increased $42 million, or 2.2%, primarily due to increases in CD and money market deposits.

Stockholders’ equity increased $70.4 million, or 37.9% compared to September 30, 2017, and $52.1 million, or 25.6%, compared to June 30, 2018.  The very strong equity growth in the third quarter was achieved through record quarterly earnings and a successful capital raise that yielded $44.1 million in net capital through the issuance of 1.61 million common shares.

The Bank’s capital ratios remain well above regulatory guidelines for well-capitalized banks. As of September 30, 2018, the Bank’s total risk-based capital ratio and tier 1 leverage ratio were 13.85% and 10.11%, respectively, compared to 11.40% and 7.78%, respectively, as of September 30, 2017. As of September 30, 2018, the Bank’s tangible equity to total tangible assets ratio was 9.85% compared to 7.56% as of September 30, 2017.

As of September 30, 2018, the Bank’s tangible book value per share was $19.09, up 21.3% compared to $15.74 as of September 30, 2017.  The increase in tangible book value per share was primarily due to an increase from strong earnings per share and approximately $1.41 accretion from the capital raise.

Asset Quality Review

 
  At or for the three months ended
Dollars in thousands Sep. 2018   Jun. 2018   Sep. 2017
Non-performing assets $   1,809     $   1,812     $   2,522  
Non-performing assets to total assets   0.08 %     0.08 %     0.12 %
           
Loans 30-89 days past due and still accruing interest $   1,177     $   3,124     $   1,239  
Loans 30-89 days past due and still accruing interest to total assets   0.05 %     0.14 %     0.06 %
Quarterly net charge-offs $   -      $   58     $   91  
 
           

Asset quality remains very strong.  As of September 30, 2018, non-performing assets as a percentage of total assets decreased to 0.08% from 0.12% at September 30, 2017. The decrease was driven by both a decline in non-performing assets as well as an increase in total assets.

Loans 30-89 days past due and still accruing interest decreased $1.9 million compared to the prior period and $62 thousand compared to the same period last year. The Bank had no net charge-offs in the third quarter of 2018, compared to $91 thousand of net charge-offs in the third quarter of 2017. For the nine months ended September 30, 2018, the Bank reported $57 thousand in net charge-offs compared to net charge-offs of $284 thousand during the same period in 2017.

The Bank is proactive in monitoring its loan portfolio for any indication of weakness and takes appropriate action to mitigate future risks across all lines of business.

Revere Bank is a Maryland, state-chartered bank that commenced operations in November 2007.  The Bank is headquartered in Rockville and has 11 branches located in the suburban Maryland counties of Anne Arundel, Baltimore, Frederick, Howard, Montgomery, and Prince George’s. The Bank is a community-based, full-service commercial bank that emphasizes the banking needs of community-based businesses, professional entities, and individuals.  Further information on Revere Bank can be obtained by visiting our website at www.reverebank.com.

Contact:    
Kenneth Cook, Co-President & CEO Andrew Flott, Co-President & CEO  
(240) 264-5372 (240) 264-5340  
kenneth.cook@reverebank.com andrew.flott@reverebank.com   
     

Forward-Looking Statement
This press release contains forward-looking statements within the meaning of the Securities and Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Bank operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be identified by use of words such as “may,” “will,” “anticipates,” “believes,” “expects,” “plans,” “estimates,” “potential,” “continue,” “should,” and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Bank’s market, interest rates and interest rate policy, competitive factors, and other conditions which by their nature, are not susceptible to accurate forecast, and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results may differ materially from those indicated herein. Readers are cautioned against placing undue reliance on any such forward-looking statements. The Bank’s past results are not necessarily indicative of future performance.

Non-GAAP Financial Measures
Statements included in this press release include non-GAAP financial measures and should be read along with the Financial Highlights table, which provides a reconciliation of non-GAAP financial measures to GAAP financial measures. This press release and the accompanying tables discuss financial measures, such as tangible common equity, tangible assets and tangible book value per share, which are non-GAAP measures. We believe that such non-GAAP measures are useful because they enhance the ability of investors and management to evaluate and compare the Bank’s operating results from period to period in a meaningful manner. Non-GAAP measures should not be considered as an alternative to any measure of performance as promulgated under GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other banks. Investors should consider the Bank’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Bank. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Bank’s results or financial condition as reported under GAAP.

Revere Bank
Consolidated Balance Sheets
(dollars in thousands)
 
    Sep. 30, 2018   Jun. 30, 2018   Dec. 31, 2017   Sep. 30, 2017
    (Unaudited)   (Unaudited)   (Audited)   (Unaudited)
Assets              
                 
Cash and due from banks $   104,740     $   71,547     $   70,730     $   100,092  
Federal funds sold     12         12         12         12  
  Total cash and cash equivalents     104,752         71,559         70,742         100,104  
Interest-bearing deposits with banks     -          1,000         1,470         1,468  
Securities available-for-sale, at fair value     167,911         167,831         163,226         164,883  
Equity securities, at cost     5,230         6,373         5,150         5,765  
Loans     1,997,511         1,961,343         1,814,692         1,753,601  
Less allowance for loan losses     17,521         16,876         14,827         14,442  
  Loans, net     1,979,990         1,944,467         1,799,865         1,739,159  
Premises and equipment, net     4,169         4,192         4,227         4,187  
Accrued interest receivable     6,556         6,206         5,868         5,428  
Deferred tax assets     6,528         6,112         5,233         6,836  
Bank owned life insurance     10,842         10,782         10,664         10,604  
Goodwill     26,815         26,815         26,815         26,815  
Core deposit intangibles     3,804         3,982         4,337         4,515  
Other assets     1,103         1,000         1,248         1,175  
                 
  Total Assets $   2,317,700     $   2,250,319     $   2,098,845     $   2,070,939  
                 
Liabilities and Stockholders' Equity              
                 
Liabilities              
Deposits:              
  Non-interest-bearing demand $   352,560     $   346,496     $   323,149     $   329,452  
  Interest-bearing     1,597,825         1,561,998         1,471,943         1,429,274  
  Total Deposits     1,950,385         1,908,494         1,795,092         1,758,726  
Federal Home Loan Bank advances     74,594         102,279         77,827         90,087  
Subordinated debt, net     30,690         30,664         30,607         30,586  
Accrued interest payable     791         1,033         929         520  
Other liabilities     5,335         4,077         6,113         5,514  
                 
  Total Liabilities     2,061,795         2,046,547         1,910,568         1,885,433  
                 
Stockholders' Equity              
Common stock, par value $5 per share; 30,000,000 shares authorized; shares issued and outstanding of 11,803,007 for September 2018, 10,116,042 for June 2018, 9,854,488 for December 2017 and 9,794,078 for September 2017     59,015         50,580         49,272         48,961  
Surplus     144,538         107,276         104,921         104,372  
Retained earnings     55,473         48,468         35,060         32,297  
Accumulated other comprehensive loss     (3,121 )       (2,552 )       (976 )       (124 )
                 
  Total Stockholders' Equity     255,905         203,772         188,277         185,506  
                 
  Total Liabilities and Stockholders' Equity $   2,317,700     $   2,250,319     $   2,098,845     $   2,070,939  
                 

/EIN News/ --  

Revere Bank
Consolidated Income Statements
(dollars in thousands, except per share data)
(Unaudited)
 
        Three Months Ended   Nine Months Ended
        Sep. 30, 2018   Jun. 30, 2018   Sep. 30, 2017   Sep. 30, 2018   Sep. 30, 2017
                         
Interest Income                    
  Loans, including fees   $   25,933     $   24,641   $   21,889   $   73,663     $   62,123  
  Securities       929         867       770       2,646         2,157  
  Federal funds sold and other       541         258       281       1,142         642  
                         
    Total Interest Income       27,403         25,766       22,940       77,451         64,922  
                         
Interest Expense                    
  Deposits       5,625         4,615       3,585       14,378         9,889  
  Borrowed funds       471         285       292       1,000         722  
  Subordinated debt       463         464       463       1,389         1,379  
                         
    Total Interest Expense       6,559         5,364       4,340       16,767         11,990  
                         
Net Interest Income       20,844         20,402       18,600       60,684         52,932  
Provision for Loan Losses       645         1,153       783       2,751         2,508  
Net interest income after provision for loan losses       20,199         19,249       17,817       57,933         50,424  
Non-interest income                    
  Service charges on deposits       254         238       218       743         702  
  Other non-interest income       144         307       216       726         728  
  Disposal of premises and equipment       (26 )       -        -        (26 )       (2 )
  Earnings on bank owned life insurance       61         59       61       178         182  
                         
    Total Non-interest income       433         604       495       1,621         1,610  
Non-Interest Expense                    
  Salaries and employee benefits       7,415         7,285       6,618       21,496         20,002  
  Occupancy and equipment       1,033         1,026       1,000       3,057         3,065  
  Legal and professional fees       388         326       454       1,081         710  
  Advertising       430         282       158       878         458  
  Data processing       657         622       565       1,888         1,812  
  FDIC premiums       330         343       383       1,029         1,176  
  Merger and acquisitions costs       -          -        107       -          559  
  Core deposit intangible amortization       178         177       178       533         533  
  Other       750         828       766       2,457         2,369  
                         
    Total Non-interest expense       11,181         10,889       10,229       32,419         30,684  
Income before income taxes       9,451         8,964       8,083       27,135         21,350  
Income Tax Expense       2,445         2,114       2,961       6,720         7,841  
Net Income   $   7,006     $   6,850   $   5,122   $   20,415     $   13,509  
                         
Basic earnings per common share   $   0.68     $   0.68   $   0.53   $   2.02     $   1.39  
Diluted earnings per common share   $   0.65     $   0.65   $   0.50   $   1.94     $   1.32  
                         

 

Revere Bank
Average Balance Sheets, Interest and Rate
(dollars in thousands)
(Unaudited)
 
    Three Months Ended September 30, 2018   Three Months Ended September 30, 2017
    Average
Balance
(1)
  Interest
Income-
Expense
  Average
Yields/

Rates
  Average
Balance
(1)
  Interest
Income-
Expense
  Average
Yields/

Rates
Assets                        
Loans, net (2)   $   1,969,777   $   25,933   5.22 %   $   1,721,697   $   21,889   5.04 %
Securities (3)       166,094       929   2.22 %       161,038       770   1.90 %
Federal funds sold and other (4)       106,801       541   2.01 %       69,864       281   1.60 %
Total interest-earnings assets       2,242,672       27,403   4.85 %       1,952,599       22,940   4.66 %
Less: Allowance for loan losses       17,180               14,061        
Other assets       70,342               109,217        
Total Assets   $   2,295,834           $   2,047,755        
                         
Liabilities & Stockholders' Equity                        
Interest-bearing deposits   $   1,589,091       5,625   1.40 %   $   1,402,110       3,585   1.01 %
Federal Home Loan Bank advances       100,253       471   1.86 %       94,223       292   1.23 %
Subordinated debt       30,673       463   5.99 %       30,570       463   6.01 %
Other borrowed funds       -        -    0.00 %       -        -    0.00 %
Total interest-bearing liabilities       1,720,017       6,559   1.51 %       1,526,903       4,340   1.13 %
Non-interest-bearing demand deposits       355,627               330,038        
Other liabilities       6,359               7,354        
Total Liabilities       2,082,003               1,864,295        
Stockholders' Equity       213,831               183,460        
Total Liabilities & Stockholders' Equity   $   2,295,834           $   2,047,755        
                         
Net interest income and margin (5) (6)       $   20,844   3.69 %       $   18,600   3.78 %
                         
    Three Months Ended June 30, 2018    
    Average
Balance
(1)
  Interest
Income-
Expense
  Average
Yields/

Rates
           
Assets                        
Loans, net (2)   $   1,905,068   $   24,641   5.19 %            
Securities (3)       162,538       867   2.14 %            
Federal funds sold and other (4)       48,555       258   2.13 %            
Total interest-earnings assets       2,116,161       25,766   4.88 %            
Less: Allowance for loan losses       16,170                    
Other assets       82,548                    
Total Assets   $   2,182,539                    
                         
Liabilities & Stockholders' Equity                        
Interest-bearing deposits   $   1,517,157       4,615   1.22 %            
Federal Home Loan Bank Advances       77,836       285   1.47 %            
Subordinated debt       30,647       464   6.07 %            
Other borrowed funds       2       -    2.25 %            
Total interest-bearing liabilities       1,625,642       5,364   1.32 %            
Non-interest-bearing demand deposits       348,468                    
Other liabilities       7,995                    
Total Liabilities       1,982,105                    
Stockholders' Equity       200,434                    
Total Liabilities & Stockholders' Equity   $   2,182,539                    
                         
Net interest income and margin (5) (6)       $   20,402   3.87 %            
                         
(1) Average balances are computed on a daily basis. 
(2) Loans are presented net of average non-accrual loans for the period and unearned revenue. 
(3) Includes available-for-sale securities. 
(4) Includes federal funds sold, FHLB stock and interest-bearing deposits at other banks 
(5) Total interest income less total interest expense. 
(6) Net interest margin is net interest income, expressed as a percentage of average interest-earning assets. 
                         
                         
    Nine Months Ended Sept. 30, 2018   Nine Months Ended Sept. 30, 2017
    Average
Balance
(1)
  Interest
Income-
Expense
  Average
Yields/

Rates
  Average
Balance
(1)
  Interest
Income-
Expense
  Average
Yields/

Rates
Assets                        
Loans, net (2)   $   1,909,302   $   73,663   5.16 %   $   1,668,147   $   62,123   4.98 %
Securities (3)       164,275       2,646   2.15 %       153,036       2,157   1.88 %
Federal funds sold and other (4)       76,804       1,142   1.99 %       63,165       642   1.36 %
Total interest-earning assets       2,150,381       77,451   4.82 %       1,884,348       64,922   4.61 %
Less: Allowance for loan losses       16,177               13,274        
Other assets       77,246               106,292        
Total Assets   $   2,211,450           $   1,977,366        
                         
Liabilities & Stockholders' Equity                        
Interest bearing deposits    $ 1,541,122     14,378    1.25 %    $ 1,371,431     9,889    0.96 %
Federal Home Loan Bank advances       84,380       1,000   1.58 %       87,003       722   1.11 %
Subordinated debt       30,647       1,389   6.06 %       30,546       1,379   6.04 %
Other borrowed funds       1       -    2.25 %       1       -    1.30 %
Total interest-bearing liabilities       1,656,150       16,767   1.35 %       1,488,981       11,990   1.08 %
Non-interest-bearing demand deposits       345,798               304,261        
Other liabilities       7,335               6,591        
Total Liabilities       2,009,283               1,799,833        
Stockholders' Equity       202,167               177,533        
Total Liabilities & Stockholders' Equity   $   2,211,450           $   1,977,366        
                         
Net interest income and margin (5) (6)       $   60,684   3.77 %       $   52,932   3.76 %
                         
(1) Average balances are computed on a daily basis. 
(2) Loans are presented net of average non-accrual loans for the period and unearned revenue. 
(3) Includes available-for-sale securities. 
(4) Includes federal funds sold, FHLB stock and interest-bearing deposits at other banks 
(5) Total interest income less total interest expense. 
(6) Net interest margin is net interest income, expressed as a percentage of average interest-earning assets. 
                         

 

Revere Bank
Financial Highlights
(dollars in thousands, except share data)
(Unaudited)
 
  At or For the
Three Months Ended
  At or For the
Nine Months Ended
  Sept. 30, 2018   June 30, 2018   Sept. 30, 2017   Sept. 30, 2018   Sept. 30, 2017
Per share Data and Shares Outstanding                  
Earnings per share - basic $   0.68     $   0.68     $   0.53     $   2.02     $   1.39  
Earnings per share - diluted $   0.65     $   0.65     $   0.50     $   1.94     $   1.32  
Tangible book value per share (1) $   19.09     $   17.10     $   15.74     $   19.09     $   15.74  
Weighted-average common shares - basic     10,329,900         10,051,607         9,747,757         10,098,968         9,705,378  
Weighted-average common shares - diluted     10,705,221         10,469,849         10,302,665         10,530,008         10,198,793  
Common shares outstanding at end of period     11,803,007         10,116,042         9,794,078         11,803,007         9,794,078  
                   
Performance Ratios                  
Return on average assets (annualized)   1.21 %     1.26 %     0.99 %     1.23 %     0.91 %
Return on average equity (annualized)   13.00 %     13.71 %     11.08 %     13.50 %     10.17 %
Yield on interest-earning assets (annualized)   4.85 %     4.88 %     4.66 %     4.82 %     4.61 %
Cost of interest-bearing liabilities (annualized)   1.51 %     1.32 %     1.13 %     1.35 %     1.08 %
Net interest margin (annualized)   3.69 %     3.87 %     3.78 %     3.77 %     3.76 %
Efficiency ratio (2)   52.55 %     51.84 %     53.57 %     52.03 %     56.26 %
                   
Asset Quality                  
Loans 30-89 days past due and accruing interest $   1,177     $   3,124     $   1,239     $   1,177     $   1,239  
Loans 30-89 days past due and accruing interest to total assets   0.05 %     0.14 %     0.06 %     0.05 %     0.06 %
Non-accrual loans $   1,809     $   1,812     $   2,522     $   1,809     $   2,522  
Other real estate owned $   -      $   -      $   -      $   -      $   -   
Non-performing assets (3) $   1,809     $   1,812     $   2,522     $   1,809     $   2,522  
Non-performing assets to total assets (3)   0.08 %     0.08 %     0.12 %     0.08 %     0.12 %
Allowance for loan losses to total loans   0.88 %     0.86 %     0.82 %     0.87 %     0.82 %
Allowance for loan losses to non-performing loans     9.7         9.3         5.7         9.7         5.7  
Net loan charge-offs (recoveries) $   -      $   58     $   91     $   57     $   284  
                   
Regulatory Capital Ratios                  
Total risk-based capital ratio   13.85 %     11.34 %     11.40 %     13.85 %     11.40 %
Tier 1 risk-based capital ratio   11.45 %     8.93 %     8.86 %     11.45 %     8.86 %
Tier 1 leverage ratio   10.11 %     8.20 %     7.78 %     10.11 %     7.78 %
Common equity tier 1 ratio   11.45 %     8.93 %     8.86 %     11.45 %     8.86 %
Tangible stockholders' equity to tangible assets (1)   9.85 %     7.79 %     7.56 %     9.85 %     7.56 %
                   
Other Information                  
Number of full time employees     229         221         206         229         206  
# Full service branch offices     11         11         11         11         11  
                   
(1)  Tangible common equity, tangible assets, tangible common equity to tangible assets and tangible book value per common share are non-GAAP financial measures. Tangible common equity is computed as total stockholders’ equity excluding intangible assets and goodwill. Tangible assets is computed as total assets excluding intangible assets and goodwill. Tangible common equity to tangible assets is the ratio of tangible common equity to tangible assets.  Tangible book value per common share is computed by dividing the total tangible common equity by the common shares issued and outstanding. The following tables provide a reconciliation of total stockholders’ to tangible common equity and a reconciliation of total assets to tangible assets.
                   
  Sept. 30, 2018   June 30, 2018   Sept. 30, 2017        
                   
Total stockholders' equity - GAAP $   255,905     $   203,772     $   185,506          
Less:                  
Goodwill     26,815         26,815         26,815          
Core deposits intangible     3,804         3,982         4,515          
                   
Tangible stockholders' equity (non-GAAP) $   225,286     $   172,975     $   154,176          
                   
Total assets - GAAP     2,317,700         2,250,319         2,070,939          
Less:                  
Goodwill     26,815         26,815         26,815          
Core deposits intangible     3,804         3,982         4,515          
                   
Total tangible assets (non-GAAP) $   2,287,081     $   2,219,522     $   2,039,609          
                   
Tangible common equity to total tangible assets ratio (non-GAAP)   9.85 %     7.79 %     7.56 %        
                   
Common shares outstanding     11,803,007         10,116,042         9,794,078          
                   
Tangible book value per share (non-GAAP) $   19.09     $   17.10     $   15.74          
                   
(2) Efficiency ratio is non-interest expense divided by the sum of net interest income and non-interest income
(3) Non-performing assets consist of non-accrual loans, loans 90 days or more past due and still accruing interest, and other real estate owned.
 

 

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