Hemisphere Energy Announces 2024 Fourth Quarter and Year-End Financial and Operating Results
2024 Highlights
Note:
(1)Non-IFRS financial measure that is not a standardized financial measure under International Financial Reporting Standards ('IFRS') and may not be comparable to similar financial measures disclosed by other issuers. Refer to 'Non-IFRS and Other Financial Measures' section below.
Financial and Operating Summary
Selected financial and operational highlights should be read in conjunction with Hemisphere's audited consolidated financial statements and related Management's Discussion and Analysis for the year ended December 31, 2024. These reports, including the Company's Annual Information Form for the year ended December 31, 2024, are available on SEDAR+ at www.sedarplus.ca and on Hemisphere's website at www.hemisphereenergy.ca. All amounts are expressed in Canadian dollars unless otherwise noted.
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Note:
(1)Non-IFRS financial measure that is not a standardized financial measure under IFRS Accounting Standards ('IFRS') and may not be comparable to similar financial measures disclosed by other issuers. Refer to 'Non-IFRS and Other Financial Measures' section of the MD&A.
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Operations Update and Outlook
2024 marked another strong year for Hemisphere, with record production levels of over 3,400 boe/d (99% heavy oil), near record AFF of $45.8 million, record shareholder returns of over $21 million ($0.21/share) through dividends and share buybacks, and an increase in its net cash position at year end to $6.4 million. The Company's first quarter 2025 field estimated production has since grown to 3,800 boe/d (99% heavy oil) through continued success of its polymer floods, despite no new wells being drilled since the third quarter of 2024.
Given the strong financial position and performance outlook of the Company, Hemisphere recently announced a special dividend of C$0.03 per common share to be paid on April 28, 2025 to shareholders of record on April 17, 2025. In 2024, Hemisphere's total dividend payments to shareholders of C$0.16 per common share included two special dividends of C$0.03 per common share (in each of July and November), in addition to the base annual dividend of C$0.10 per common share. These special dividends are an important part of Hemisphere's overall shareholder return model.
As seen over the first two weeks of April, pricing outlook for the oil market is experiencing significant volatility influenced by geopolitical developments, supply-demand dynamics, and trade tensions. Hemisphere's 2025 budget is extremely flexible with minimal capital spending planned until summer. The Company's robust balance sheet, ultra-low decline assets, and limited sustaining capital requirements for 2025 position Hemisphere well to withstand these economic headwinds.
About Hemisphere Energy Corporation
Hemisphere is a dividend-paying Canadian oil company focused on maximizing value-per-share growth with the sustainable development of its high netback, low decline conventional heavy oil assets through polymer flood enhanced oil recovery methods. Hemisphere trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol 'HME' and on the OTCQX Venture Marketplace under the symbol 'HMENF'.
For further information, please visit the Company's website at www.hemisphereenergy.ca to view its corporate presentation or contact:
Don Simmons, President & Chief Executive Officer
Telephone: (604) 685-9255
Email: [email protected]
Website: www.hemisphereenergy.ca
Forward-Looking Statements
Certain statements included in this news release constitute forward-looking statements or forward-looking information (collectively, 'forward-looking statements') within the meaning of applicable securities legislation. Forward-Looking statements are typically identified by words such as 'anticipate', 'continue', 'estimate', 'expect', 'forecast', 'may', 'will', 'project', 'could', 'plan', 'intend', 'should', 'believe', 'outlook', 'potential', 'target' and similar words suggesting future events or future performance. In particular, but without limiting the generality of the foregoing, this news release includes forward-looking statements that a special dividend will be paid to shareholders on April 28, 2025 to shareholders of record on April 17, 2025; Hemisphere's intention to have minimal capital spending until summer; and the Company's view that its robust balance sheet, ultra-low decline assets, and limited sustaining capital requirements for 2025 position Hemisphere well to withstand economic headwinds.
Forward‐Looking statements are based on a number of material factors, expectations or assumptions of Hemisphere which have been used to develop such statements and information, but which may prove to be incorrect. Although Hemisphere believes that the expectations reflected in such forward‐looking statements or information are reasonable, undue reliance should not be placed on forward‐looking statements because Hemisphere can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: the current and go-forward oil price environment; that Hemisphere will continue to conduct its operations in a manner consistent with past operations; that results from drilling and development activities are consistent with past operations; current budgets; the quality of the reservoirs in which Hemisphere operates and continued performance from existing wells; the continued and timely development of infrastructure in areas of new production; the accuracy of the estimates of Hemisphere's reserve volumes; certain commodity price and other cost assumptions; continued availability of debt and equity financing and cash flow to fund Hemisphere's current and future plans and expenditures; the impact of increasing competition; the general stability of the economic and political environment in which Hemisphere operates; the general continuance of current industry conditions; the timely receipt of any required regulatory approvals; the ability of Hemisphere to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which Hemisphere has an interest in to operate the field in a safe, efficient and effective manner; the ability of Hemisphere to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration; the timing and cost of pipeline, storage and facility construction and expansion and the ability of Hemisphere to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Hemisphere operates; trade and tariff matters, including the impacts on costs and supply chains; and the ability of Hemisphere to successfully market its oil and natural gas products.
The forward‐looking statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to defer materially from those anticipated in such forward‐looking statements including, without limitation: changes in commodity prices; changes in the demand for or supply of Hemisphere's products, changes in Hemisphere's budget, the early stage of development of some of the evaluated areas and zones; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans of Hemisphere or by third party operators of Hemisphere's properties, increased debt levels or debt service requirements; inaccurate estimation of Hemisphere's oil and gas reserve volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time‐to‐time in Hemisphere's public disclosure documents, (including, without limitation, those risks identified in this news release and in Hemisphere's Annual Information Form).
The forward‐looking statements contained in this news release speak only as of the date of this news release, and Hemisphere does not assume any obligation to publicly update or revise any of the included forward‐looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
This MD&A contains the terms adjusted funds flow from operations, free funds flow, operating field netback and operating netback, capital expenditures and working capital/net debt, which are considered 'non-IFRS financial measures' and any of these measures calculated on a per boe basis, which are considered 'non-IFRS financial ratios'. These terms do not have a standardized meaning prescribed by IFRS. Accordingly, the Company's use of these terms may not be comparable to similarly defined measures presented by other companies. Investors are cautioned that these measures should not be construed as an alternative to net income (loss) or cashflow from operations determined in accordance with IFRS and these measures should not be considered more meaningful than IFRS measures in evaluating the Company's performance.
a)Adjusted funds flow from operations 'AFF' (Non-IFRS Financial Measure and Ratio if calculated on a per boe basis): The Company considers AFF to be a key measure that indicates the Company's ability to generate the funds necessary to support future growth through capital investment and to repay any debt. AFF is a measure that represents cash flow generated by operating activities, before changes in non-cash working capital and adjusted for tax provision and decommissioning expenditures, and may not be comparable to measures used by other companies. The most directly comparable IFRS measure for AFF is cash provided by operating activities. AFF per share is calculatedusing the same weighted-average number of shares outstanding as in the case of the earnings per share calculation for the period.
A reconciliation of AFF to cash provided by operating activities is presented as follows:
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(1)Provision for income taxes deferred under new corporate partnership structure effective as of January 2, 2024.
b)Free funds flow ('FFF') (Non-IFRS Financial Measures): Calculated by taking adjusted funds flow and subtracting capital expenditures, excluding acquisitions and dispositions. Management believes that free funds flow provides a useful measure to determine Hemisphere's ability to improve returns and to manage the long-term value of the business.
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c)Capital Expenditures (Non-IFRS Financial Measure): Management uses the term 'capital expenditures' as a measure of capital investment in exploration and production assets, and such spending is compared to the Company's annual budgeted capital expenditures. The most directly comparable IFRS measure for capital expenditures is cash flow used in investing activities. A summary of the reconciliation of cash flow used in investing activities to capital expenditures is set forth below:
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d)Operating field netback (Non-IFRS Financial Measure and Ratio if calculated on a per boe basis): A benchmark used in the oil and natural gas industry and a key indicator of profitability relative to current commodity prices. Operating field netback is calculated as oil and gas sales, less royalties, operating expenses, and transportation costs on an absolute and per barrel of oil equivalent basis. These terms should not be considered an alternative to, or more meaningful than, cash flow from operating activities or net income or loss as determined in accordance with IFRS as an indicator of the Company's performance.
e)Operating netback (Non-IFRS Financial Measure and Ratio if calculated on a per boe basis): Calculated as the operating field netback plus the Company's realized gain (loss) on derivative financial instruments on an absolute and per barrel of oil equivalent basis.
f)Working capital/Net debt (Non-IFRS Financial Measure): Closely monitored by the Company to ensure that its capital structure is maintained by a strong balance sheet to fund the future growth of the Company. Working capital/net debt is used in this document in the context of liquidity and is calculated as the total of the Company's current assets, less current liabilities, excluding derivative financial instruments, decommissioning obligations, and lease liabilities, adjusted for tax provision and including any bank debt. There is no IFRS measure that is reasonably comparable to working capital/net debt.
The following table outlines the Company calculation of net debt:
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Notes:
(1)Excluding fair value of financial instruments, decommissioning obligations, and lease liabilities.
(2)Provision for income taxes deferred under new corporate partnership structure effective as of January 2, 2024.
g)Supplementary Financial Measures and Ratios
'Adjusted Funds Flow from operations per basic share' is comprised of funds from operations divided by basic weighted average common shares.
'Adjusted Funds Flow from operations per diluted share' is comprised of funds from operations divided by diluted weighted average common shares.
'Annual Free Funds Flow' is comprised of free funds flow from the current three-month period multiplied by four.
'Operating expense per boe' is comprised of operating expense, as determined in accordance with IFRS, divided by the Company's total production.
'Realized heavy oil price' is comprised of heavy crude oil commodity sales from production, as determined in accordance with IFRS, divided by the Company's crude oil production.
'Realized natural gas price' is comprised of natural gas commodity sales from production, as determined in accordance with IFRS, divided by the Company's natural gas production.
'Realized combined price' is comprised of total commodity sales from production, as determined in accordance with IFRS, divided by the Company's total production.
'Royalties per boe' is comprised of royalties, as determined in accordance with IFRS, divided by the Company's total production.
'Transportation costs per boe' is comprised of transportation expenses, as determined in accordance with IFRS, divided by the Company's total production.
The Company has provided additional information on how these measures are calculated in the Management's Discussion and Analysis for the year ended December 31, 2024, which is available under the Company's SEDAR+ profile atwww.sedarplus.ca.
Oil and Gas Advisories
Any references in this news release to initial production rates (including as a result of recent water or polymer flood activities) are useful in confirming the presence of hydrocarbons; however, such rates are not determinative of the rates at which such wells will continue production and decline thereafter and are not necessarily indicative of long-term performance or ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company. Such rates are based on field estimates and may be based on limited data available at this time.
A barrel of oil equivalent ('boe') may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
Definitions and AbbreviationsTo view the source version of this press release, please visit https://www.newsfilecorp.com/release/248893
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LOS ANGELES--(BUSINESS WIRE)--CBB Bancorp, Inc. ("CBB" or the "Company') (OTCQX: CBBI), the holding company of Commonwealth Business Bank, doing business as 'CBB Bank' (the "Bank"), announced today net income of $4.4 million for the second quarter 2025, or $0.41 per diluted share compared to $4.5 million in the first quarter 2025, or $0.42 per diluted share. Second Quarter 2025 Highlights Net income of $4.4 million, or $0.41 per diluted share Net interest margin expanded to 3.46%, up from 3.38% in Q1 Efficiency ratio improved to 59.99% SBA loan sales of $17.6 million with 8.1% average premium Deposit growth of $47.7 million (3.2% quarter-over-quarter) Net income for the second quarter 2025 declined slightly compared to the prior quarter, as increased net interest income was offset by a modest rise in noninterest expenses and a decline in noninterest income. The net interest margin for the second quarter 2025 was 3.46% compared to 3.38% for the first quarter 2025 and 3.77% for the second quarter 2024. The efficiency ratio for the second quarter 2025 was 59.99% compared to 60.41% for the first quarter 2025 and 55.69% for the second quarter 2024. Richard Koh, President and CEO, said, "Amid ongoing developments around tariffs, trade restrictions, and heightened volatility in capital markets, the near-term outlook remains increasingly uncertain. As a relationship-driven bank, we are well-equipped to navigate these challenges. We remain committed to executing our long-term strategies and delivering exceptional service to our customers." INCOME STATEMENT Net Interest Income Net interest income for the second quarter 2025 was $15.0 million, an increase of $224 thousand or 1.5%, quarter over quarter and a decrease of $317 thousand or 2.1%, compared to the second quarter 2024 due to moderate decrease in average yield on loans. Net Interest Margin The net interest margin for the second quarter 2025 was 3.46% compared to 3.38% for the first quarter 2025 and 3.77% for the second quarter 2024. Net interest margin improved by 8 basis points compared to the prior quarter, mainly driven by a 3 basis point increase in the yield on interest-earning assets and a 11 basis point reduction in the cost of deposits. The cost of funds for the second quarter 2025 was 3.29% compared to 3.34% for the first quarter 2025 and 3.52% for the second quarter 2024. Provision for Credit Losses Total provision for credit losses of $590 thousand was recorded for the second quarter 2025 compared to $500 thousand in the first quarter 2025. Provision for credit loss of $200 thousand was recorded for the second quarter 2024. Noninterest Income Noninterest income for the second quarter of 2025 was $2.1 million, unchanged from the first quarter of 2025, and $253 thousand lower than the $2.3 million reported in the second quarter of 2024. A loss of $67 thousand was recognized on the sale of other real estate owned (OREO) during the quarter. Noninterest Expenses Noninterest expenses totaled $10.3 million for the second quarter of 2025, compared to $10.2 million in the prior quarter and $9.9 million in the second quarter of 2024. The $43 thousand quarter-over-quarter increase was primarily driven by higher marketing and professional fees, partially offset by decreases in insurance and loan-related expenses. Please refer to the financial tables in this press release for additional information and trends. Income Taxes The Company's effective tax rate for the second quarter 2025 was 29.8% compared to 28.3% for the first quarter 2025 and 28.3% for the second quarter 2024. BALANCE SHEET Investment Securities Investment securities were $65.5 million at June 30, 2025, an increase of $4.0 million or 6.5% from March 31, 2025, and a decrease of $7.5 million or 10.3% from June 30, 2024. Loans Receivable Loans receivable, including loans held-for-sale, totaled $1.46 billion as of June 30, 2025, representing an increase of $11.5 million, or 0.8%, from March 31, 2025, and $24.5 million, or 1.7%, from June 30, 2024. The growth was primarily driven by increases in commercial real estate (CRE) loans. Allowance for Credit Losses and Asset Quality The Allowance for Credit Losses ('ACL') was $15.5 million as of June 30, 2025, representing 1.21% of loans held-for-investment, compared to $14.9 million, or 1.18%, at March 31, 2025. At June 30, 2024, the ACL totaled $16.0 million, or 1.31% of loans held-for-investment. Total nonperforming assets increased to $16.7 million at June 30, 2025, from $11.7 million at March 31, 2025, and $5.8 million a year earlier. ACL coverage of nonperforming assets was over 92% at quarter-end. Substandard loans increased to $30.4 million as of June 30, 2025, up from $20.8 million in the prior quarter. Delinquent loans declined slightly to $25.2 million, compared to $27.6 million at March 31, 2025. SBA Loans Held-for-Sale As of June 30, 2025, total SBA loans held-for-sale were $184.0 million, compared to $194.5 million at March 31, 2025, and $209.1 million at June 30, 2024. During the second quarter of 2025, the Bank sold $17.6 million in SBA loans at an average premium of 8.1%, compared to $19.8 million sold in the first quarter of 2025, also at an average premium of 8.1%. In the second quarter of 2024, the Bank sold $19.5 million in SBA loans with an average premium of 6.8%. Deposits Total deposits were $1.52 billion at June 30, 2025, up $47.7 million or 3.2% from March 31, 2025, and up $184.5 million or 13.8% from June 30, 2024. Borrowings As of June 30, 2025, the Bank had no outstanding borrowings, compared to $50.0 million in FHLB advances as of March 31, 2025. Capital Stockholders' equity was $262.0 million at June 30, 2025, which increased $3.5 million or 1.3%, quarter over quarter. Tangible book value per share at June 30, 2025, was $24.51, an increase of $0.33, or 1.4%, quarter over quarter. The following are the Company's and the Bank's regulatory capital ratios at June 30, 2025. The Common Equity Tier 1 Risk-Based Capital Ratios at June 30, 2025, were 18.98% and 18.94% for the Company and the Bank, respectively. Total Risk-Based Capital Ratios were 20.13% and 20.09% for the Company and the Bank, respectively. Leverage Ratios were 14.48% for the Company and 14.45% for the Bank. The Bank is considered 'Well Capitalized' under the applicable regulatory capital rules. About CBB Bancorp, Inc.: CBB Bancorp, Inc. is the holding company of Commonwealth Business Bank, a full-service commercial bank which specializes in loans to small-to-medium-sized businesses and does business as 'CBB Bank.' As of June 30, 2025, the Bank had twelve full-service banking offices in Los Angeles and Orange Counties in California, Dallas County in Texas, Honolulu, Hawaii, and Fort Lee, New Jersey. Three SBA regional offices in Los Angeles, Dallas, and Bergen Counties, and loan production offices in Georgia, Washington, and New York. For additional information, please go to under the tab 'About Us' and select 'Investor Relations' to see the 2Q 2025 Overview. FORWARD-LOOKING STATEMENTS: This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. CBB Bancorp, Inc. (the 'Company') intends that such forward-looking statements be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Future events are difficult to predict, and the expectations described herein are necessarily subject to risks and uncertainties that may cause actual results to differ materially and adversely from those described herein. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words 'believe,' 'expect,' 'anticipate,' 'intend,' 'plan,' 'estimate,' or words of similar meaning, or future or conditional verbs such as 'will,' 'would,' 'should,' 'could,' or 'may.' These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management's views as of any subsequent date. Factors that might cause actual results to differ materially from those presented, either expressed or implied, in this news release include, but are not limited to: the Company's ability to successfully execute its business plans and achieve its objectives; changes in general economic and financial market conditions, either nationally or locally in areas in which the Company conducts its operations; changes in interest rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Company's operations or business; loss of key personnel; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances, except to the extent required by law. (Dollars in thousands, except per share amounts) Three Months Ended Six Months Ended June 30, March 31, $ % June 30, $ % June 30, June 30, $ % 2025 2025 Change Change 2024 Change Change 2025 2024 Change Change Interest income $ 27,392 $ 27,467 $ (75 ) (0.3 %) $ 27,755 $ (363 ) (1.3 %) $ 54,859 $ 56,218 $ (1,359 ) (2.4 %) Interest expense 12,345 12,644 (299 ) (2.4 %) 12,391 (46 ) (0.4 %) 24,989 25,046 (57 ) (0.2 %) Net interest income 15,047 14,823 224 1.5 % 15,364 (317 ) (2.1 %) 29,870 31,172 (1,302 ) (4.2 %) Provision for credit losses 590 500 90 18.0 % 200 390 195.0 % 1,090 600 490 81.7 % Net interest income after provision for credit losses 14,457 14,323 134 0.9 % 15,164 (707 ) (4.7 %) 28,780 30,572 (1,792 ) (5.9 %) Gain on sale of loans 900 1,021 (121 ) -11.9 % 1,064 (164 ) 748.8 % 1,921 2,553 (632 ) (24.8 %) Loss on sale of OREO (67 ) (92 ) 25 (27.2 %) - (67 ) (100.0 %) (159 ) (1 ) (158 ) 158.00 SBA servicing fee income, net 799 691 108 15.6 % 768 31 4.0 % 1,490 1,401 89 6.4 % Recovery on impaired servicing liability - - - - - - - - 10 (10 ) (100.0 %) Service charges and other income 450 496 (46 ) (9.3 %) 503 (53 ) (10.5 %) 946 933 13 1.4 % Noninterest income 2,082 2,116 (34 ) (1.6 %) 2,335 (253 ) (10.8 %) 4,198 4,896 (698 ) (14.3 %) Salaries and employee benefits 5,779 5,848 (69 ) (1.2 %) 5,927 (148 ) (2.5 %) 11,627 11,951 (324 ) (2.7 %) Occupancy and equipment 1,293 1,314 (21 ) (1.6 %) 1,114 179 16.1 % 2,607 2,236 371 16.6 % Marketing expense 404 215 189 87.9 % 403 1 0.2 % 619 805 (186 ) (23.1 %) Professional expense 619 430 189 44.0 % 440 179 40.7 % 1,049 852 197 23.1 % Other expenses 2,181 2,426 (245 ) (10.1 %) 1,972 209 10.6 % 4,607 4,056 551 13.6 % Noninterest expense 10,276 10,233 43 0.4 % 9,856 420 4.3 % 20,509 19,900 609 3.1 % Income before income tax provision 6,263 6,206 57 0.9 % 7,643 (1,380 ) (18.1 %) 12,469 15,568 (3,099 ) (19.9 %) Income tax provision 1,868 1,753 115 6.6 % 2,163 (295 ) (13.6 %) 3,621 4,416 (795 ) (18.0 %) Net income $ 4,395 $ 4,453 $ (58 ) (1.3 %) $ 5,480 $ (1,085 ) (19.8 %) $ 8,848 $ 11,152 $ (2,304 ) (20.7 %) Effective tax rate 29.83 % 28.25 % 1.58 % 5.59 % 28.30 % 1.53 % 5.39 % 29.04 % 28.37 % 0.67 % 2.38 % Outstanding number of shares 10,588,136 10,588,136 - - 10,588,136 - - 10,588,136 10,588,136 - - Weighted average shares for basic EPS 10,588,136 10,588,136 - - 10,588,136 - - 10,588,136 10,588,136 - - Weighted average shares for diluted EPS 10,593,497 10,605,812 (12,315 ) (0.1 %) 10,588,136 5,361 0.1 % 10,599,146 10,558,688 40,458 0.4 % Basic EPS $ 0.42 $ 0.42 $ - - $ 0.51 $ (0.09 ) (17.6 %) $ 0.84 $ 1.05 $ (0.21 ) -20.0 % Diluted EPS $ 0.41 $ 0.42 $ (0.01 ) (2.4 %) $ 0.51 $ (0.10 ) (19.6 %) $ 0.83 $ 1.05 $ (0.22 ) (21.0 %) Return on average assets 0.98 % 0.99 % (0.01 %) (1.0 %) 1.31 % (0.33 %) (25.2 %) 0.99 % 1.32 % (0.33 %) (25.0 %) Return on average equity 6.76 % 7.01 % (0.25 %) (3.6 %) 9.06 % (2.30 %) (25.4 %) 6.89 % 9.31 % (2.42 %) (26.0 %) Efficiency ratio¹ 59.99 % 60.41 % (0.42 %) (0.7 %) 55.69 % 4.30 % 7.7 % 60.20 % 55.17 % 5.03 % 9.1 % Yield on interest-earning assets² 6.28 % 6.25 % 0.03 % 0.5 % 6.79 % (0.51 %) (7.5 %) 6.26 % 6.78 % (0.52 %) (7.7 %) Cost of funds 3.29 % 3.34 % (0.05 %) (1.5 %) 3.52 % (0.23 %) (6.5 %) 3.31 % 3.50 % (0.19 %) (5.4 %) Net interest margin² 3.46 % 3.38 % 0.08 % 2.4 % 3.77 % (0.31 %) (8.2 %) 3.42 % 3.77 % (0.35 %) (9.3 %) Expand 1 Represents the ratio of noninterest expense less other real estate owned operations to the sum of net interest income before provision for credit losses and total noninterest income. 2 Expand BALANCE SHEET, CAPITAL AND OTHER DATA (Unaudited) - Table 2 (Dollars in thousands) June 30, March 31, $ % June 30, $ % 2025 2025 Change Change 2024 Change Change ASSETS Cash and due from banks $ 11,873 $ 12,716 $ (843 ) (6.6 %) $ 11,667 $ 206 1.8 % Interest-earning deposits at the FRB and other banks 235,436 249,535 (14,099 ) (5.7 %) 101,415 134,021 132.2 % Investment securities¹ 65,518 61,521 3,997 6.5 % 73,051 (7,533 ) (10.3 %) Loans held-for-sale 183,996 194,542 (10,546 ) (5.4 %) 209,144 (25,148 ) (12.0 %) Loans held-for-investment 1,278,106 1,256,063 22,043 1.8 % 1,228,496 49,610 4.0 % Less: Allowance for credit losses ("ACL") (15,461 ) (14,850 ) (611 ) (4.1 %) (16,042 ) 581 3.6 % Loans held-for-investment, net 1,262,645 1,241,213 21,432 1.7 % 1,212,454 50,191 4.1 % Other real estate owned ("OREO") 2,999 3,130 (131 ) -4.2 % - 2,999 100.0 % Restricted stock investments 11,011 11,011 - - 11,011 - - Servicing assets 6,609 6,708 (99 ) (1.5 %) 7,404 (795 ) (10.7 %) Goodwill 2,185 2,185 - - 2,185 - - Intangible assets 195 205 (10 ) (4.9 %) 235 (40 ) (17.0 %) Other assets 32,359 31,304 1,055 3.4 % 26,343 6,016 22.8 % Total assets $ 1,814,826 $ 1,814,070 $ 756 0.0 % $ 1,654,909 $ 159,917 9.7 % LIABILITIES AND STOCKHOLDERS' EQUITY Noninterest-bearing $ 309,160 $ 295,857 $ 13,303 4.5 % $ 281,243 $ 27,917 9.9 % Interest-bearing 1,215,760 1,181,362 34,398 2.9 % 1,059,146 156,614 14.8 % Total deposits 1,524,920 1,477,219 47,701 3.2 % 1,340,389 184,531 13.8 % FHLB advances and other borrowing - 50,000 (50,000 ) -100.0 % 50,000 (50,000 ) - Other liabilities 27,972 28,397 (425 ) (1.5 %) 19,260 8,712 45.2 % Total liabilities 1,552,892 1,555,616 (2,724 ) (0.2 %) 1,409,649 143,243 10.2 % Stockholders' Equity 261,934 258,454 3,480 1.3 % 245,260 16,674 6.8 % TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 1,814,826 $ 1,814,070 $ 756 0.0 % $ 1,654,909 $ 159,917 9.7 % CAPITAL RATIOS Leverage ratio Company 14.48 % 14.04 % 0.44 % 3.1 % 14.51 % (0.03 %) (0.2 %) Bank 14.45 % 14.00 % 0.44 % 3.2 % 14.45 % (0.00 %) (0.0 %) Common equity tier 1 risk-based capital ratio Company 18.98 % 19.10 % (0.12 %) (0.6 %) 18.36 % 0.62 % 3.4 % Bank 18.94 % 19.05 % - - 18.28 % 0.66 % 3.6 % Tier 1 risk-based capital ratio Company 18.98 % 19.10 % (0.12 %) (0.6 %) 18.36 % 0.62 % 3.4 % Bank 18.94 % 19.05 % - - 18.28 % 0.66 % 3.6 % Total risk-based capital ratio Company 20.13 % 20.23 % (0.10 %) (0.5 %) 19.59 % 0.54 % 2.8 % Bank 20.09 % 20.18 % (0.09 %) (0.4 %) 19.50 % 0.58 % 3.0 % Tangible book value per share $ 24.51 $ 24.18 $ 0.33 1.4 % $ 22.94 $ 1.57 6.8 % Loans Held for Investments-to-Deposit ("LHFITD") ratio 83.81 % 85.03 % (1.22 %) (1.4 %) 91.65 % (7.84 %) (8.6 %) Net Loan-to-Deposit ("LTD") ratio 94.87 % 97.19 % (2.32 %) (2.4 %) 106.06 % (11.19 %) (10.6 %) Nonperforming assets $ 16,699 $ 11,675 $ 5,024 43.0 % $ 5,797 $ 10,902 188.1 % Nonperforming assets as a % of loans held-for-investment 1.31 % 0.93 % 0.38 % 40.9 % 0.47 % 0.84 % 178.7 % ACL as a % of loans held-for-investment 1.21 % 1.18 % 0.03 % 2.54 % 1.31 % (0.10 %) (7.6 %) Expand 1 Includes AFS and HTM Expand FIVE-QUARTER STATEMENT OF INCOME (Unaudited) - Table 3 (Dollars in thousands, except per share amounts) Three Months Ended June 30, March 31, December 31, September 30, June 30, 2025 2025 2024 2024 2024 Interest income $ 27,392 $ 27,467 $ 28,769 $ 28,380 $ 27,755 Interest expense 12,345 12,644 13,121 12,904 12,391 Net interest income 15,047 14,823 15,648 15,476 15,364 Provision for credit losses 590 500 - (100 ) 200 Net interest income after provision for credit losses 14,457 14,323 15,648 15,576 15,164 Gain on sale of loans 900 1,021 1,013 991 1,064 Gain (loss) on sale of OREO (67 ) (92 ) - - - SBA servicing fee income, net 799 691 654 760 768 Recovery on impaired servicing liability - - - - - Service charges and other income 450 496 543 465 503 Noninterest income 2,082 2,116 2,210 2,216 2,335 Salaries and employee benefits 5,779 5,848 5,635 5,884 5,927 Occupancy and equipment 1,293 1,314 1,280 1,149 1,114 Marketing expense 404 215 285 423 403 Professional expense 619 430 329 456 440 Other expenses 2,181 2,426 2,411 2,104 1,972 Noninterest expense 10,276 10,233 9,940 10,016 9,856 Income before income tax expense 6,263 6,206 7,918 7,776 7,643 Income tax expense 1,868 1,753 2,211 2,207 2,163 Net income $ 4,395 $ 4,453 $ 5,707 $ 5,569 $ 5,480 Effective tax rate 29.8 % 28.3 % 27.9 % 28.4 % 28.3 % Outstanding number of shares 10,588,136 10,588,136 10,588,136 10,588,136 10,588,136 Weighted average shares for basic EPS 10,588,136 10,588,136 10,588,136 10,588,136 10,588,136 Basic EPS $ 0.42 $ 0.42 $ 0.54 $ 0.53 $ 0.51 Diluted EPS $ 0.41 $ 0.42 $ 0.54 $ 0.53 $ 0.51 Expand FIVE-QUARTER SALARIES BENEFIT METRICS (Unaudited) - Table 4 (Dollars in thousands) At or for the Three Months Ended June 30, March 31, December 31, September 30, June 30, 2025 2025 2024 2024 2024 Salaries and benefits $ 5,779 $ 5,848 $ 5,635 $ 5,884 $ 5,927 FTE at the end of period 163 166 168 178 172 Average FTE during the period 166 169 166 173 171 Salaries and benefits/average FTE¹ $ 140 $ 141 $ 135 $ 135 $ 139 Salaries and benefits/average assets¹ 1.29 % 1.30 % 1.25 % 1.38 % 1.42 % Noninterest expense/average assets¹ 2.30 % 2.27 % 2.21 % 2.35 % 2.36 % Expand 1 Annualized Expand FIVE-QUARTER BALANCE SHEET (Unaudited) - Table 5 (Dollars in thousands) June 30, March 31, December 31, September 30, June 30, 2025 2025 2024 2024 2024 ASSETS Cash and due from banks $ 11,873 $ 12,716 $ 10,336 $ 14,892 $ 11,667 Interest-earning deposits at the FRB and other banks 235,436 249,535 266,826 241,094 101,415 Investment securities 65,518 61,521 62,196 63,208 73,051 Loans held-for-sale 183,996 194,542 198,448 198,021 209,144 Loans held-for-investment 1,278,106 1,256,063 1,239,564 1,222,865 1,228,496 Less: Allowance for credit losses (15,461 ) (14,850 ) (15,959 ) (15,948 ) (16,042 ) Loans held-for-investment, net 1,262,645 1,241,213 1,223,605 1,206,917 1,212,454 Other real estate owned 2,999 3,130 521 521 - Restricted stock investments 11,011 11,011 11,011 11,011 11,011 Servicing assets 6,609 6,708 6,909 7,192 7,404 Goodwill 2,185 2,185 2,185 2,185 2,185 Intangible assets 195 205 214 224 235 Other assets 32,359 31,304 33,384 25,284 26,343 Total assets $ 1,814,826 $ 1,814,070 $ 1,815,635 $ 1,770,549 $ 1,654,909 LIABILITIES AND STOCKHOLDERS' EQUITY Noninterest-bearing $ 309,160 $ 295,857 $ 304,005 $ 318,807 $ 281,243 Interest-bearing 1,215,760 1,181,362 1,176,567 1,128,784 1,059,146 Total deposits 1,524,920 1,477,219 1,480,572 1,447,591 1,340,389 FHLB advances - 50,000 50,000 50,000 50,000 Other liabilities 27,972 28,397 30,096 22,415 19,260 Total liabilities 1,552,892 1,555,616 1,560,668 1,520,006 1,409,649 Stockholders' Equity 261,934 258,454 254,967 250,543 245,260 Expand FIVE-QUARTER LOANS RECEIVABLE COMPONENTS (Unaudited) - Table 6 (Dollars in thousands) June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 Balance % Balance % Balance % Balance % Balance % Construction $ 33,952 2.7 % $ 31,913 2.5 % $ 27,276 2.2 % $ 29,789 2.4 % $ 33,918 2.8 % Commercial real estate 1,091,180 85.4 % 1,061,873 84.5 % 1,048,945 84.6 % 1,029,768 84.2 % 1,035,425 84.3 % Commercial and industrial 108,461 8.5 % 112,369 9.0 % 114,435 9.2 % 112,588 9.2 % 108,742 8.9 % Home mortgage 36,673 2.9 % 41,944 3.3 % 43,676 3.5 % 45,673 3.7 % 44,987 3.7 % Consumer 3,527 0.3 % 3,477 0.3 % 552 0.0 % 537 0.0 % 782 0.1 % Gross loans held-for-investment 1,273,793 99.7 % 1,251,576 99.6 % 1,234,884 99.6 % 1,218,355 99.6 % 1,223,854 99.6 % Loans held-for-investment $ 1,278,106 100.0 % $ 1,256,063 100.0 % $ 1,239,564 100.0 % $ 1,222,865 100.0 % $ 1,228,496 100.0 % Loans held-for-sale $ 183,996 $ 194,542 $ 198,448 $ 198,021 $ 209,144 Total loans receivable $ 1,462,102 $ 1,450,605 $ 1,438,012 $ 1,420,886 $ 1,437,640 Expand FIVE-QUARTER SBA LOAN PRODUCTIONS/SALES DATA (Unaudited) - Table 7 (Dollars in thousands) Three Months Ended Six Months Ended June 30 March 31, December 31, September 30, June 30, June 30 June 30 2025 2025 2024 2024 2024 2025 2024 SBA loans held-for-sale at beginning of the quarter/year $ 194,542 $ 198,448 $ 198,021 $ 209,144 $ 198,167 $ 198,448 $ 218,258 SBA loans originated/transferred from/to held-for- investment during the quarter/year 20,135 23,778 22,172 13,169 34,366 43,913 48,955 SBA loans sold during the quarter/year (17,580 ) (19,753 ) (17,215 ) (20,152 ) (19,508 ) (37,333 ) (47,672 ) SBA loans principal paydown/payoff, net of advance (13,101 ) (7,931 ) (4,530 ) (4,140 ) (3,881 ) (21,032 ) (10,397 ) SBA loans held-for-sale at end of the quarter/year $ 183,996 $ 194,542 $ 198,448 $ 198,021 $ 209,144 $ 183,996 $ 209,144 Gain on sale of SBA loans $ 900 $ 1,021 $ 1,013 $ 991 $ 1,064 $ 1,921 $ 2,553 Premium on sale (weighted average) 8.1 % 8.1 % 9.2 % 7.5 % 6.8 % 8.1 % 8.4 % SBA loan production $ 28,860 $ 32,034 $ 39,741 $ 23,227 $ 45,126 $ 60,894 $ 63,215 Expand FIVE-QUARTER DEPOSIT COMPONENTS (Unaudited) - Table 9 (Dollars in thousands) June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 Balance % Balance % Balance % Balance % Balance % Noninterest-bearing demand $ 309,160 20.3% $ 295,857 20.0% $ 304,005 20.5% $ 318,807 22.0% $ 281,243 21.0% Interest-bearing demand 10,698 0.7% 6,588 0.5% 7,541 0.5% 6,590 0.5% 7,901 0.6% NOW & MMDA 274,578 18.0% 257,474 17.4% 269,475 18.2% 246,157 17.0% 240,951 18.0% Savings 85,609 5.6% 81,425 5.5% 84,727 5.7% 78,356 5.4% 80,360 6.0% TCDs of $250K and under 319,209 20.9% 315,312 21.3% 324,041 21.9% 310,134 21.4% 295,109 22.0% TCDs of $250K over 403,676 26.5% 377,486 25.6% 345,045 23.3% 342,301 23.7% 314,119 23.4% Wholesale deposits 121,990 8.0% 143,077 9.7% 145,738 9.9% 145,246 10.0% 120,706 9.0% Total Deposits $ 1,524,920 100.0% $ 1,477,219 100.0% $ 1,480,572 100.0% $ 1,447,591 100.0% $ 1,340,389 100.0% Recap: Noninterest-bearing demand $ 309,160 20.3% $ 295,857 20.0% $ 304,005 20.5% $ 318,807 22.0% $ 281,243 21.0% Interest-bearing demand 10,698 0.7% 6,588 0.5% 7,541 0.5% 6,590 0.5% 7,901 0.6% NOW & MMDA 274,578 18.0% 257,474 17.4% 269,475 18.2% 246,157 17.0% 240,951 18.0% Savings 85,609 5.6% 81,425 5.5% 84,727 5.7% 78,356 5.4% 80,360 6.0% TCDs of $250K and under 319,209 20.9% 315,312 21.3% 324,041 21.9% 310,134 21.4% 295,109 22.0% Core Deposits 999,254 65.5% 956,656 64.7% 989,789 66.8% 960,044 66.3% 881,952 67.6% TCDs of $250K over 403,676 26.5% 377,486 25.6% 345,045 23.3% 342,301 23.7% 314,119 23.4% Nonreciprocal ICS MMDA - - - - - - - - - - Expand FIVE-QUARTER SELECTED LOAN AND ASSET QUALITY HIGHLIGHTS (Unaudited) - Table 10 (Dollars in thousands) 2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr. Allowance for Credit Losses Balance at beginning of period $ 14,850 $ 15,959 $ 15,948 $ 16,042 $ 16,048 Provision for credit losses 590 430 - - 200 Charge-offs (143 ) (1,567 ) - (108 ) (257 ) Recoveries 164 28 11 14 51 Balance at the end of period $ 15,461 $ 14,850 $ 15,959 $ 15,948 $ 16,042 Nonperforming Assets:¹ Over 90 days still accruing $ 1,487 $ - $ 1,819 $ 994 $ - Nonaccrual loans 12,213 8,545 9,711 7,043 5,797 Total nonperforming loans 13,700 8,545 11,530 8,037 5,797 Other real estate owned $ 2,999 3,130 521 521 - Classified Assets:¹ Substandard $ 30,442 $ 20,827 $ 22,077 $ 15,980 $ 12,762 Doubtful - - - - - Loss Other real estate owned $ 2,999 3,130 521 521 - Total classified assets $ 33,441 $ 23,957 $ 22,598 $ 16,501 $ 12,762 Delinquent Loans:¹ Loans 30-89 days past due $ 11,548 $ 19,010 $ 7,614 $ 4,308 $ 8,613 90 days or more past due and still accruing 1,487 - 1,819 994 - Nonaccrual 12,213 8,545 9,711 7,043 5,797 Total delinquent loans $ 25,248 $ 27,555 $ 19,144 $ 12,345 $ 14,410 Asset Quality Ratios: Net (recoveries) charge-offs to average loans² (0.01 %) 0.43 % 0.00 % 0.03 % 0.06 % Nonaccrual loans to loans held-for-investment 0.96 % 0.68 % 0.78 % 0.58 % 0.47 % Nonperforming loans to loans held-for-investment 1.07 % 0.68 % 0.93 % 0.66 % 0.47 % Nonperforming assets to total assets 0.92 % 0.64 % 0.66 % 0.48 % 0.35 % Classified loans to loans held-for-investment 2.38 % 1.66 % 1.78 % 1.31 % 1.04 % Classified loans to Tier 1 and ACL 11.07 % 7.69 % 8.22 % 6.05 % 4.93 % Classified assets to total assets 1.84 % 1.32 % 1.24 % 0.93 % 0.77 % Classified assets to Tier 1 and ACL 12.16 % 8.84 % 8.42 % 6.25 % 4.93 % ACL to loans held-for-investment 1.21 % 1.18 % 1.29 % 1.30 % 1.31 % ACL to nonaccrual loans 126.59 % 173.79 % 164.34 % 226.44 % 276.73 % ACL to nonperforming loans 112.85 % 173.79 % 138.41 % 198.43 % 276.73 % ACL to nonperforming assets 92.59 % 127.19 % 132.43 % 186.35 % 276.73 % Texas ratio ³ 6.07 % 4.31 % 4.49 % 3.24 % 2.24 % Expand 1 Net of SBA guaranteed balance 2 Includes loans held-for-sale Expand FIVE-QUARTER MARGIN ANALYSIS (Unaudited) -Table 12 (Dollars in thousands) Three Months Ended June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 Avg Balance Interest Yield Avg Balance Interest Yield Avg Balance Interest Yield Avg Balance Interest Yield Avg Balance Interest Yield Number of Days in the Period INTEREST-EARNING ASSETS Loans Receivable¹ $ 1,461,584 $ 24,171 6.63 % $ 1,437,846 $ 23,618 6.66 % $ 1,432,216 $ 24,863 6.91 % $ 1,427,123 $ 25,357 7.07 % $ 1,418,458 $ 24,887 7.06 % Investment securities ² 64,990 686 4.23 % 61,930 667 4.37 % 62,714 696 4.42 % 68,198 734 4.28 % 70,052 723 4.15 % Interest-earning deposits at the FRB and other banks 214,514 2,383 4.46 % 275,512 3,029 4.46 % 253,524 3,048 4.78 % 158,127 2,139 5.38 % 146,956 1,995 5.46 % Other earning assets 11,011 200 7.29 % 11,011 203 7.48 % 11,011 211 7.62 % 11,011 200 7.23 % 11,011 200 7.31 % Total interest-earning assets ² 1,752,099 27,440 6.28 % 1,786,299 27,517 6.25 % 1,759,465 28,818 6.52 % 1,664,459 28,430 6.80 % 1,646,477 27,805 6.79 % NONINTEREST-EARNING ASSETS Cash and due from banks 11,512 12,060 12,349 12,527 12,907 Other noninterest-earning assets 44,078 41,549 35,479 34,395 33,263 Total noninterest-earning assets 55,590 53,609 47,828 46,922 46,170 Less: Allowance for credit losses (14,899 ) (15,569 ) (15,953 ) (16,024 ) (16,058 ) TOTAL ASSETS $ 1,792,790 $ 1,824,339 $ 1,791,340 $ 1,695,357 $ 1,676,589 INTEREST-BEARING DEPOSITS Interest-bearing demand $ 9,957 $ 5 0.20 % $ 9,622 $ 5 0.20 % $ 11,147 $ 6 0.20 % $ 11,007 $ 6 0.20 % $ 11,864 $ 6 0.20 % Money market 263,197 2,540 3.87 % 265,687 2,555 3.90 % 244,258 2,508 4.08 % 236,834 2,555 4.29 % 230,261 2,272 3.97 % Savings 83,261 633 3.05 % 83,978 638 3.08 % 81,423 661 3.23 % 79,289 689 3.46 % 82,215 700 3.42 % Time deposits 847,092 9,159 4.34 % 830,672 9,331 4.56 % 815,866 9,828 4.79 % 767,607 9,536 4.94 % 759,954 9,296 4.92 % Total interest-bearing deposits 1,203,507 12,337 4.11 % 1,189,959 12,529 4.27 % 1,152,694 13,003 4.49 % 1,094,737 12,786 4.65 % 1,084,294 12,274 4.55 % Borrowings 4,122 8 0.78 % 48,889 115 0.95 % 50,001 118 0.94 % 50,000 118 0.94 % 50,013 117 0.94 % Total interest-bearing liabilities 1,207,629 12,345 4.10 % 1,238,848 12,644 4.14 % 1,202,695 13,121 4.34 % 1,144,737 12,904 4.48 % 1,134,307 12,391 4.39 % Noninterest-bearing deposits 296,496 298,579 309,662 280,670 279,765 Other liabilities 28,026 29,428 26,090 21,376 19,287 Stockholders' equity 260,639 257,484 252,893 248,574 243,230 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 1,792,790 $ 1,824,339 $ 1,791,340 $ 1,695,357 $ 1,676,589 Net interest income² $ 15,095 $ 14,873 $ 15,697 $ 15,526 $ 15,414 Net interest spread 2.18 % 2.11 % 2.18 % 2.32 % 2.40 % Effect of noninterest-bearing sources 1.28 % 1.27 % 1.37 % 1.39 % 1.37 % Net interest margin² 3.46 % 3.38 % 3.55 % 3.71 % 3.77 % Cost of deposits $ 1,500,003 $ 12,337 3.30 % $ 1,488,538 $ 12,529 3.41 % $ 1,462,356 $ 13,003 3.54 % $ 1,375,407 $ 12,786 3.70 % $ 1,364,059 $ 12,274 3.62 % Cost of funds $ 1,504,125 $ 12,345 3.29 % $ 1,537,427 $ 12,644 3.34 % $ 1,512,357 $ 13,121 3.45 % $ 1,425,407 $ 12,904 3.60 % $ 1,414,072 $ 12,391 3.52 % Expand 1 Loan held-for-investment, plus loans held-for-sale 2 Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate Expand MARGIN ANALYSIS (Unaudited) - Table 14 (Dollars in thousands) Six Months Ended June 30,2024 Number of Days in the Period INTEREST-EARNING ASSETS Loans Receivable ¹ $ 1,449,780 $ 47,789 6.65 % $ 1,417,191 $ 49,793 7.07 % Investment securities ² 63,469 1,353 4.30 % 64,803 1,298 4.03 % Interest-earning deposits at the FRB and other banks 244,844 5,412 4.46 % 177,056 4,812 5.47 % Other earning assets 11,011 403 7.38 % 11,011 414 7.56 % Total interest-earning assets ² 1,769,104 54,957 6.26 % 1,670,061 56,317 6.78 % NONINTEREST-EARNING ASSETS Cash and due from banks 11,784 12,540 Other noninterest-earning assets 42,701 32,122 Total noninterest-earning assets 54,485 44,662 Less: Allowance for credit losses (15,232 ) (15,690 ) TOTAL ASSETS $ 1,808,357 $ 1,699,033 INTEREST-BEARING DEPOSITS Interest-bearing demand $ 9,790 $ 10 0.20 % $ 12,271 $ 12 0.20 % Money market 264,435 5,095 3.89 % 229,851 4,557 3.99 % Savings 83,618 1,271 3.07 % 83,534 1,424 3.43 % Time deposits 838,927 18,490 4.44 % 780,539 18,819 4.85 % Total interest-bearing deposits 1,196,770 24,866 4.19 % 1,106,195 24,812 4.51 % Borrowings 26,382 123 0.94 % 50,007 234 0.94 % Total interest-bearing liabilities 1,223,152 24,989 4.12 % 1,156,202 25,046 4.36 % Noninterest-bearing deposits 297,532 282,316 Other liabilities 28,603 19,707 Stockholders' equity 259,070 240,808 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 1,808,357 $ 1,699,033 Net interest income² $ 29,968 $ 31,271 Net interest spread 2.14 % 2.42 % Effect of noninterest-bearing sources 1.28 % 1.35 % Net interest margin² 3.42 % 3.77 % Cost of deposits $ 1,494,302 $ 24,866 3.36 % $ 1,388,511 $ 24,812 3.59 % Cost of funds $ 1,520,684 $ 24,989 3.31 % $ 1,438,518 $ 25,046 3.50 % Expand 1 Loan held-for-investment, plus loans held-for-sale 2 Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate Expand