Limestone Bancorp Reports Net Income of $4.0 million, or $0.53 per Diluted Share, for the 2nd Quarter of 2022 and $7.6 million, or $1.00 per Diluted Share, for the Six Months Ended June 30, 2022

Limestone Bancorp, Inc. (NASDAQ: LMST) (the “Company”), parent company of Limestone Bank, Inc. (the “Bank”), today reported unaudited results for the second quarter of 2022. Net income available to common shareholders for the second quarter of 2022 was $4.0 million, or $0.53 per basic and diluted common share, compared with $3.9 million, or $0.51 per basic and diluted common share, for the second quarter of 2021. Net income for the six months ended June 30, 2022, was $7.6 million, or $1.00 per basic and diluted common share, compared with net income of $7.1 million, or $0.94 per basic and diluted common share, for the six months ended June 30, 2021.

John T. Taylor, Chief Executive Officer, noted, “We continue to be pleased with the Company’s strong financial performance and remain focused on our disciplined approach to community banking and credit underwriting. Our efforts are proving successful as loan growth was 2.5% for the second quarter of 2022 after posting an increase of 4.5% in the first quarter. Asset quality remains strong and net interest margin expanded nine basis points quarter over quarter, which is directionally consistent with the Fed’s tightening actions and our approach to interest rate risk management. I also want to commend our associates for their commitment to the Bank and I am proud to report that Limestone was again, in 2022, named one of the Best Places to Work in Kentucky.”

Total assets were $1.42 billion at June 30, 2022, up $8.4 million from the previous quarter. The loan portfolio increased $26.5 million, or 2.5%, during the quarter to $1.07 billion at June 30, 2022, while securities and fed funds sold declined $16.3 million.

Net Interest Income and Average Earning Assets – Net interest income increased to $11.7 million for the second quarter of 2022, compared to $11.1 million for the first quarter of 2022, and $10.9 million for the second quarter of 2021. Net interest margin increased to 3.51% for the second quarter of 2022, compared with 3.42% for the first quarter of 2022, and 3.45% for the second quarter of 2021.

The yield on earning assets increased to 3.95% in the second quarter of 2022, compared to 3.82% in the first quarter of 2022, and 3.91% in the second quarter of 2021. Quarter over quarter, average loans increased $24.5 million to $1.05 billion, while average lower yielding fed funds sold decreased $8.3 million. PPP loans averaged $172,000 for the second quarter of 2022 and $605,000 for the first quarter of 2022. Compared to the prior year second quarter, average loans increased $91.1 million and average investment securities increased $31.1 million, while average lower yielding fed funds sold decreased $57.4 million. PPP loans averaged $26.9 million for the second quarter of 2021.

While the Federal Reserve increased the fed funds target by 25 basis points on March 16, 2022, 50 basis points on May 4, 2022, and 75 basis points on June 15, 2022, the yield on earning assets for fiscal year 2021 and the first quarter of 2022 were impacted by the low interest rate environment. During the second quarter of 2022, the Bank’s fed funds sold, floating rate investment securities, loans with variable rate pricing features, and new loan originations began to benefit from the upward movement in short-term rates and are expected to continue to benefit as rates continue to rise. The cost of interest-bearing liabilities was also impacted to a lesser extent, but is also expected to increase as short-term interest rates continue to rise.

Loan fee income can meaningfully impact net interest income, loan yields, and net interest margin. The amount of loan fee income included in total interest income was $173,000, $324,000, and $933,000 for the quarters ended June 30, 2022, March 31, 2022, and June 30, 2021, respectively. This represents six basis points, 10 basis points, and 29 basis points of yield on earning assets and net interest margin for the quarters ended June 30, 2022, March 31, 2022, and June 30, 2021, respectively. Loan fee income for the second quarter of 2022 did not include any fees earned on PPP loans, compared to $45,000 in the first quarter of 2022, and $692,000 in the second quarter of 2021, which represents two basis points, and 22 basis points of earning asset yield and net interest margin for those quarters, respectively.

The following table reconciles the as reported yield on earning assets to the yield on earning assets excluding PPP fees, a non-GAAP financial measure:

 

Three Months Ended

 

 

 

6/30/22

 

 

3/31/22

 

 

12/31/21

 

 

9/30/21

 

 

6/30/21

 

 

(in thousands)

 

 

 

 

Yield on Earning Assets, as reported

 

3.95

%

 

3.82

%

 

3.71

%

 

4.03

%

 

3.91

%

Less Impact of PPP Fees

 

 

 

0.02

 

 

0.08

 

 

0.43

 

 

0.22

 

Yield on Earning Asset excluding PPP Fees

 

3.95

%

 

3.80

%

 

3.63

%

 

3.60

%

 

3.69

%

 

The cost of interest-bearing liabilities was 0.58% for the second quarter of 2022, compared to 0.53% in the first quarter of 2022, and 0.61% in the second quarter of 2021. Quarter over quarter, average deposits decreased and were replaced with higher cost FHLB funding. Compared to the prior year second quarter, the cost of interest-bearing liabilities benefitted as a result of an improvement in deposit mix, as well as the downward repricing of time deposits between periods.

Net interest income increased to $22.8 million for the first six months of 2022, compared with $21.6 million in the first six months of 2021. Net interest margin decreased to 3.47% in the first six months of 2022, compared with 3.49% for the first six months of 2021.

The yield on earning assets decreased to 3.88% for the first six months of 2022, compared to 3.98% for the first six months of 2021. Average loans for the first six months of 2022 increased $77.7 million to $1.04 billion and average investment securities increased $42.6 million, while average lower yielding fed funds sold decreased $39.9 million compared to the first six months of 2021. Average PPP loans were $419,000 and $23.5 million for the first six months of 2022 and 2021, respectively. The amount of loan fee income included in total interest income was $497,000 and $1.8 million for the six months ended June 30, 2022 and 2021, respectively. This represents seven basis points and 29 basis points of yield on earning assets and net interest margin for the six months ended June 30, 2022 and 2021, respectively. Loan fee income included PPP fees of $45,000 and $1.1 million for the six months ended June 30, 2022 and 2021, respectively, which represented less than one basis point and 18 basis points of earning asset yield and net interest margin for those six-month periods, respectively.

The cost of interest-bearing liabilities was 0.56% for the first six months of 2022, compared to 0.64% in the first six months of 2021. The cost of interest-bearing liabilities for the first six months of 2022 benefitted from an improvement in deposit mix, as well as the downward repricing of time deposits between periods compared to the first six months of 2021.

The cost of interest-bearing liabilities was impacted by the recent increases in short-term interest rates and is expected to continue to increase as short-term interest rates continue to rise. Time deposits declined $3.9 million during the second quarter of 2022 as approximately $59.4 million of time deposits with an average rate of 0.29% matured and were redeemed or repriced at lower interest rates. During the second quarter of 2022, newly originated or renewed time deposits had an average rate of 0.75% and an average term of approximately 10 months. As of June 30, 2022, time deposits comprised $256.1 million of the Company’s liabilities including $47.9 million with a current average rate of 0.58%, which reprice or mature in the third quarter of 2022. The following table denotes contractual time deposit maturities and average rates as of June 30, 2022:

Maturity

Quarter

 

As of

June 30,

2022

(in thousands)

 

Weighted

Average

Rate

 

Q3-2022

 

 

47,894

 

0.58

 

Q4-2022

 

 

51,494

 

0.55

 

Q1-2023

 

 

52,568

 

0.50

 

Q2-2023

 

 

26,461

 

0.74

 

Thereafter

 

 

77,724

 

0.79

 

Total time deposits

 

$

256,141

 

0.64

%

 

Provision and Allowance for Loan Losses – The allowance for loan losses to total loans was 1.17% at June 30, 2022, compared to 1.16% at March 31, 2022, and 1.33% at June 30, 2021.

Net loan charge-offs were $95,000 and $181,000, for the three and six months ended June 30, 2022, compared to net loan charge-offs of $118,000 and $156,000, for the three and six months ended June 30, 2021. A provision for loan loss of $450,000 and $1.2 million, or $0.04 and $0.12 per common share after taxes, was recorded in the second quarter and the first six months of 2022, respectively, compared to no provision for loan loss in the second quarter of 2021 and $350,000, or $0.03 per common share after taxes, for the first six months of 2021. The 2022 and 2021 loan loss provisions were attributable to growth trends within the portfolio and net loan charge-offs impacting historical loss percentages during the periods.

Non-interest Income and Expense – Non-interest income for the second quarter of 2022 increased $121,000 to $2.3 million, compared with $2.1 million for the second quarter of 2021. The increase was primarily related to an increase in transaction volumes which led to an increase in service charges on deposit accounts of $170,000 and an increase in bank owned life insurance income of $106,000 due to additional policies being purchased in March 2022, offset by a non-recurring $191,000 gain on the sale of OREO from the second quarter of 2021. Non-interest expense increased $273,000, or 3.4%, to $8.2 million for the second quarter of 2022, compared with $8.0 million for the second quarter of 2021. Salaries and benefits expense increased $184,000 from the second quarter of 2021. While FTEs declined between the periods, salaries expense increased as a result of the inflationary impact on talent acquisition and the administration of annual salary adjustments.

Non-interest income for the first six months of 2022 increased $475,000 to $4.5 million, compared with $4.0 million for the first six months of 2021. The increase was primarily due to an increase in service charges on deposit accounts of $256,000 and $143,000 in bank owned life insurance income as discussed above. Non-interest income for the first six months of 2022 also included a $163,000 non-recurring gain on sale of premises held for sale from the first quarter of 2022, while the first six months of 2021 included a $191,000 non-recurring gain on sale of OREO from the second quarter of 2021. Non-interest expense increased $260,000, or 1.6%, to $16.2 million for the first six months of 2022, compared with $15.9 million for the first six months of 2021. The increase was primarily due to an increase of $266,000 in salaries and benefits as discussed above.

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 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, 2021.

Additional Information

Unaudited supplemental financial information for the second quarter ending June 30, 2022, follows.

 
 
 

LIMESTONE BANCORP, INC.

Unaudited Financial Information

(in thousands, except share and per share data)

 

Three

 

Three

 

Six

 

Six

 

 

Months

 

Months

 

Months

 

Months

 

 

Ended

 

Ended

 

Ended

 

Ended

 

 

6/30/22

 

6/30/21

 

6/30/22

 

6/30/21

 

Income Statement Data

 

Interest income

$

13,122

 

$

12,376

 

$

25,549

 

$

24,626

 

Interest expense

 

1,442

 

 

1,462

 

 

2,755

 

 

3,032

 

Net interest income

 

11,680

 

 

10,914

 

 

22,794

 

 

21,594

 

Provision for loan losses

 

450

 

 

 

 

1,200

 

 

350

 

Net interest income after provision

 

11,230

 

 

10,914

 

 

21,594

 

 

21,244

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

690

 

 

520

 

 

1,324

 

 

1,068

 

Bank card interchange fees

 

1,087

 

 

1,073

 

 

2,090

 

 

2,033

 

Bank owned life insurance income

 

249

 

 

143

 

 

451

 

 

308

 

Gain on sale of OREO

 

 

 

191

 

 

 

 

191

 

Gain (loss) on sales and calls of securities, net

 

(3

)

 

(5

)

 

(3

)

 

(5

)

Gain on sale of premises held for sale

 

 

 

 

 

163

 

 

 

Other

 

233

 

 

213

 

 

469

 

 

424

 

Non-interest income

 

2,256

 

 

2,135

 

 

4,494

 

 

4,019

 

 

Salaries & employee benefits

 

4,651

 

 

4,467

 

 

9,215

 

 

8,949

 

Occupancy and equipment

 

1,055

 

 

979

 

 

2,084

 

 

2,039

 

Deposit account related expense

 

574

 

 

556

 

 

1,121

 

 

1,047

 

Data processing expense

 

403

 

 

377

 

 

789

 

 

755

 

Professional fees

 

236

 

 

246

 

 

457

 

 

482

 

Marketing expense

 

172

 

 

179

 

 

305

 

 

361

 

FDIC insurance

 

90

 

 

90

 

 

180

 

 

225

 

Deposit tax

 

99

 

 

90

 

 

198

 

 

180

 

Communications expense

 

121

 

 

194

 

 

185

 

 

367

 

Insurance expense

 

109

 

 

115

 

 

214

 

 

219

 

Postage and delivery

 

150

 

 

139

 

 

313

 

 

291

 

Other

 

567

 

 

522

 

 

1,137

 

 

1,023

 

Non-interest expense

 

8,227

 

 

7,954

 

 

16,198

 

 

15,938

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

5,259

 

 

5,095

 

 

9,890

 

 

9,325

 

Income tax expense

 

1,223

 

 

1,194

 

 

2,275

 

 

2,202

 

Net income

$

4,036

 

$

3,901

 

$

7,615

 

$

7,123

 

 

Weighted average shares – Basic

 

7,631,883

 

 

7,597,202

 

 

7,623,181

 

 

7,586,267

 

Weighted average shares – Diluted

 

7,631,883

 

 

7,597,202

 

 

7,623,181

 

 

7,586,267

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.53

 

$

0.51

 

$

1.00

 

$

0.94

 

Diluted earnings per common share

$

0.53

 

$

0.51

 

$

1.00

 

$

0.94

 

Cash dividends declared per common share

$

0.05

 

$

0.00

 

$

0.10

 

$

0.00

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance Ratios

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.14

%

 

1.15

%

 

1.09

%

 

1.07

%

Return on average equity

 

12.66

 

 

12.89

 

 

11.86

 

 

12.02

 

Yield on average earning assets (tax equivalent)

 

3.95

 

 

3.91

 

 

3.88

 

 

3.98

 

Cost of interest-bearing liabilities

 

0.58

 

 

0.61

 

 

0.56

 

 

0.64

 

Net interest margin (tax equivalent)

 

3.51

 

 

3.45

 

 

3.47

 

 

3.49

 

Efficiency ratio1

 

59.02

 

 

60.93

 

 

59.35

 

 

62.21

 

Non-interest expense to average assets

 

2.33

 

 

2.34

 

 

2.31

 

 

2.40

 

 
 
 

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

 

 

 

6/30/22

 

3/31/22

 

12/31/21

 

 

9/30/21

 

 

6/30/21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

13,122

 

$

12,427

 

$

12,314

 

$

12,975

 

$

12,376

 

Interest expense

 

1,442

 

 

1,313

 

 

1,307

 

 

1,354

 

 

1,462

 

Net interest income

 

11,680

 

 

11,114

 

 

11,007

 

 

11,621

 

 

10,914

 

Provision for loan losses

 

450

 

 

750

 

 

500

 

 

300

 

 

 

Net interest income after provision

 

11,230

 

 

10,364

 

 

10,507

 

 

11,321

 

 

10,914

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

690

 

 

634

 

 

605

 

 

583

 

 

520

 

Bank card interchange fees

 

1,087

 

 

1,003

 

 

1,039

 

 

1,044

 

 

1,073

 

Bank owned life insurance income

 

249

 

 

202

 

 

106

 

 

112

 

 

143

 

Gain on sale of OREO

 

 

 

 

 

 

 

 

 

191

 

Gain (loss) on sales and calls of securities, net

 

(3

)

 

 

 

 

 

465

 

 

(5

)

Gain on sale of premises held for sale

 

 

 

163

 

 

 

 

 

 

 

Other

 

233

 

 

236

 

 

234

 

 

232

 

 

213

 

Non-interest income

 

2,256

 

 

2,238

 

 

1,984

 

 

2,436

 

 

2,135

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries & employee benefits

 

4,651

 

 

4,564

 

 

4,601

 

 

4,582

 

 

4,467

 

Occupancy and equipment

 

1,055

 

 

1,029

 

 

978

 

 

1,024

 

 

979

 

Deposit account related expense

 

574

 

 

547

 

 

566

 

 

545

 

 

556

 

Data processing expense

 

403

 

 

386

 

 

379

 

 

378

 

 

377

 

Professional fees

 

236

 

 

221

 

 

251

 

 

219

 

 

246

 

Marketing expense

 

172

 

 

133

 

 

166

 

 

200

 

 

179

 

FDIC insurance

 

90

 

 

90

 

 

90

 

 

90

 

 

90

 

Deposit tax

 

99

 

 

99

 

 

105

 

 

90

 

 

90

 

Communications expense

 

121

 

 

64

 

 

161

 

 

153

 

 

194

 

Insurance expense

 

109

 

 

105

 

 

91

 

 

105

 

 

115

 

Postage and delivery

 

150

 

 

163

 

 

145

 

 

169

 

 

139

 

Other

 

567

 

 

570

 

 

450

 

 

495

 

 

522

 

Non-interest expense

 

8,227

 

 

7,971

 

 

7,983

 

 

8,050

 

 

7,954

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

5,259

 

 

4,631

 

 

4,508

 

 

5,707

 

 

5,095

 

Income tax expense

 

1,223

 

 

1,052

 

 

1,063

 

 

1,366

 

 

1,194

 

Net income

$

4,036

 

$

3,579

 

$

3,445

 

$

4,341

 

$

3,901

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares – Basic

 

7,631,883

 

 

7,614,382

 

 

7,597,256

 

 

7,602,686

 

 

7,597,202

 

Weighted average shares – Diluted

 

7,631,883

 

 

7,614,382

 

 

7,597,256

 

 

7,602,686

 

 

7,597,202

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.53

 

$

0.47

 

$

0.45

 

$

0.57

 

$

0.51

 

Diluted earnings per common share

$

0.53

 

$

0.47

 

$

0.45

 

$

0.57

 

$

0.51

 

Cash dividends declared per common share

$

0.05

 

$

0.05

 

$

0.00

 

$

0.00

 

$

0.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.14

%

 

1.03

%

 

0.97

%

 

1.26

%

 

1.15

%

Return on average equity

 

12.66

 

 

11.07

 

 

10.51

 

 

13.61

 

 

12.89

 

Yield on average earning assets (tax equivalent)

 

3.95

 

 

3.82

 

 

3.71

 

 

4.03

 

 

3.91

 

Cost of interest-bearing liabilities

 

0.58

 

 

0.53

 

 

0.53

 

 

0.56

 

 

0.61

 

Net interest margin (tax equivalent)

 

3.51

 

 

3.42

 

 

3.32

 

 

3.61

 

 

3.45

 

Efficiency ratio1

 

59.02

 

 

59.70

 

 

61.45

 

 

59.23

 

 

60.93

 

Non-interest expense to average assets

 

2.33

2.30

2.25

2.33

2.34

 
 
 

LIMESTONE BANCORP, INC.

Unaudited Financial Information

(in thousands, except share and per share data)

 

As of

 

6/30/22

 

3/31/22

 

12/31/21

 

9/30/21

6/30/21

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

$

1,073,815

 

 

$

1,047,285

 

 

$

1,001,840

 

 

$

968,088

 

$

947,425

 

Allowance for loan losses

 

(12,550

)

 

 

(12,195

)

 

 

(11,531

)

 

 

(12,973

)

 

(12,637

)

Net loans

 

1,061,265

 

 

 

1,035,090

 

 

 

990,309

 

 

 

955,115

 

 

934,788

 

Securities held to maturity2

 

44,205

 

 

 

45,639

 

 

 

46,460

 

 

 

47,539

 

 

46,717

 

Securities available for sale2

 

193,022

 

 

 

204,071

 

 

 

214,213

 

 

 

203,548

 

 

182,154

 

Federal funds sold & interest-bearing deposits

 

18,244

 

 

 

22,040

 

 

 

67,110

 

 

 

44,909

 

 

75,536

 

Cash and due from financial institutions

 

7,742

 

 

 

10,009

 

 

 

10,493

 

 

 

13,579

 

 

9,584

 

Premises and equipment

 

22,747

 

 

 

23,043

 

 

 

21,575

 

 

 

21,623

 

 

21,912

 

Premises held for sale

 

 

 

 

 

 

 

310

 

 

 

980

 

 

980

 

Bank owned life insurance

 

30,888

 

 

 

30,643

 

 

 

23,946

 

 

 

23,845

 

 

23,738

 

FHLB Stock

 

5,116

 

 

 

5,116

 

 

 

5,116

 

 

 

5,116

 

 

5,449

 

Deferred taxes, net

 

23,343

 

 

 

22,648

 

 

 

21,583

 

 

 

22,161

 

 

23,452

 

Goodwill

 

6,252

 

 

 

6,252

 

 

 

6,252

 

 

 

6,252

 

 

6,252

 

Intangible assets

 

1,861

 

 

 

1,925

 

 

 

1,989

 

 

 

2,053

 

 

2,117

 

Accrued interest receivable and other assets

 

6,383

 

 

 

6,230

 

 

 

6,336

 

 

 

6,128

 

 

6,231

 

Total Assets

$

1,421,068

 

 

$

1,412,706

 

 

$

1,415,692

 

 

$

1,352,848

 

$

1,338,910

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

$

256,141

 

 

$

260,064

 

 

$

266,011

 

 

$

280,545

 

$

303,668

 

Interest checking

 

269,240

 

 

 

274,054

 

 

 

287,208

 

 

 

239,923

 

 

216,344

 

Money market

 

209,183

 

 

 

216,845

 

 

 

217,943

 

 

 

198,470

 

 

191,773

 

Savings

 

163,573

 

 

 

166,135

 

 

 

163,423

 

 

 

163,018

 

 

160,257

 

Total interest-bearing deposits

 

898,137

 

 

 

917,098

 

 

 

934,585

 

 

 

881,956

 

 

872,042

 

Demand deposits

 

269,425

 

 

 

281,533

 

 

 

274,083

 

 

 

266,035

 

 

267,059

 

Total deposits

 

1,167,562

 

 

 

1,198,631

 

 

 

1,208,668

 

 

 

1,147,991

 

 

1,139,101

 

FHLB advances

 

70,000

 

 

 

30,000

 

 

 

20,000

 

 

 

20,000

 

 

20,000

 

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

 

10,888

 

 

 

9,855

 

 

 

10,065

 

 

 

10,193

 

 

9,850

 

Total liabilities

 

1,294,450

 

 

 

1,284,486

 

 

 

1,284,733

 

 

 

1,224,184

 

 

1,214,951

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

126,618

 

 

 

128,220

 

 

 

130,959

 

 

 

128,664

 

 

123,959

 

Total Liabilities and Stockholders’ Equity

$

1,421,068

 

 

$

1,412,706

 

 

$

1,415,692

 

 

$

1,352,848

 

$

1,338,910

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending shares outstanding

 

7,640,680

 

 

 

7,622,157

 

 

 

7,594,749

 

 

 

7,602,686

 

 

7,602,686

 

Book value per common share

$

16.57

 

 

$

16.82

 

 

$

17.24

 

 

$

16.92

 

$

16.30

 

Tangible book value per common share3

 

15.51

 

 

 

15.75

 

 

 

16.16

 

 

 

15.83

 

 

15.20

 

 
 
 

LIMESTONE BANCORP, INC.

Unaudited Financial Information

(in thousands, except share and per share data)

 

 

As of

 

 

 

6/30/22

 

 

3/31/22

 

 

12/31/21

 

 

9/30/21

 

 

6/30/21

 

Average Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

$

1,417,087

 

$

1,407,030

 

$

1,405,219

 

$

1,369,372

 

$

1,361,080

 

Loans

 

1,053,057

 

 

1,028,546

 

 

955,516

 

 

952,567

 

 

961,922

 

Earning assets

 

1,339,555

 

 

1,326,234

 

 

1,322,821

 

 

1,284,188

 

 

1,275,363

 

Deposits

 

1,184,426

 

 

1,199,174

 

 

1,199,334

 

 

1,166,785

 

 

1,164,524

 

Long-term debt and advances

 

93,968

 

 

67,667

 

 

66,000

 

 

66,000

 

 

66,000

 

Interest bearing liabilities

 

1,000,367

 

 

996,710

 

 

982,132

 

 

954,007

 

 

956,172

 

Stockholders’ equity

 

127,827

 

 

131,097

 

 

129,998

 

 

126,556

 

 

121,386

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

$

3,007

 

$

3,447

 

$

3,124

 

$

1,627

 

$

1,530

 

Troubled debt restructurings on accrual

 

150

 

 

333

 

 

340

 

 

561

 

 

390

 

Loan 90 days or more past due still on accrual

 

 

 

 

 

 

 

 

 

 

Total non-performing loans

 

3,157

 

 

3,780

 

 

3,464

 

 

2,188

 

 

1,920

 

Real estate acquired through foreclosures

 

 

 

 

 

 

 

 

 

 

Other repossessed assets

 

 

 

 

 

 

 

 

 

 

Total non-performing assets

$

3,157

 

$

3,780

 

$

3,464

 

$

2,188

 

$

1,920

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans to total loans

 

0.29

%

 

0.36

%

 

0.35

%

 

0.23

%

 

0.20

%

Non-performing assets to total assets

 

0.22

 

 

0.27

 

 

0.24

 

 

0.16

 

 

0.14

 

Allowance for loan losses to non-performing loans

 

397.53

 

 

322.62

 

 

332.88

 

 

592.92

 

 

658.18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to total loans

 

1.17

%

 

1.16

%

 

1.15

%

 

1.34

%

 

1.33

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan Charge-off Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans charged off

$

(367

)

$

(227

)

$

(2,246

)

$

(25

)

$

(178

)

Recoveries

 

272

 

 

141

 

 

304

 

 

61

 

 

60

 

Net (charge-offs) recoveries

$

(95

)

$

(86

)

$

(1,942

)

$

36

 

$

(118

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans by Risk Category4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

1,052,624

 

$

1,023,039

 

$

977,962

 

$

945,396

 

$

913,753

 

Watch

 

6,426

 

 

8,567

 

 

7,856

 

 

3,407

 

 

15,888

 

Special Mention

 

 

 

 

 

 

 

 

 

 

Substandard

 

14,765

 

 

15,679

 

 

16,022

 

 

19,285

 

 

17,784

 

Doubtful

 

 

 

 

 

 

 

 

 

 

Total

$

1,073,815

 

$

1,047,285

 

$

1,001,840

 

$

968,088

 

$

947,425

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans by Past Due Status

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past due loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30 – 59 days

$

600

 

$

1,108

 

$

556

 

$

630

 

$

181

 

60 – 89 days

 

209

 

 

89

 

 

210

 

 

142

 

 

252

 

90 days or more

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

3,007

 

 

3,447

 

 

3,124

 

 

1,627

 

 

1,530

 

Total past due and nonaccrual loans

$

3,816

$

4,644

$

3,890

$

2,399

$

1,963

 
 
 

LIMESTONE BANCORP, INC.

Unaudited Financial Information

(in thousands, except share and per share data) 

As of

 

 

 

6/30/22

 

 

3/31/22

 

 

12/31/21

 

 

9/30/21

 

 

6/30/21

 

Risk-based Capital Ratios - Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier I leverage ratio

 

9.68

%

 

9.38

%

 

9.14

%

 

9.39

%

 

8.70

%

Common equity Tier I risk-based capital ratio

 

9.16

 

 

8.93

 

 

9.00

 

 

9.37

 

 

9.48

 

Tier I risk-based capital ratio

 

10.49

 

 

10.19

 

 

10.38

 

 

10.86

 

 

10.63

 

Total risk-based capital ratio

 

13.39

 

 

13.12

 

 

13.41

 

 

14.13

 

 

14.09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk-based Capital Ratios – Limestone Bank

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier I leverage ratio

 

11.39

%

 

11.20

%

 

10.84

%

 

10.96

%

 

10.55

%

Common equity Tier I risk-based capital ratio

 

12.38

 

 

12.21

 

 

12.35

 

 

12.68

 

 

12.95

 

Tier I risk-based capital ratio

 

12.38

 

 

12.21

 

 

12.35

 

 

12.68

 

 

12.95

 

Total risk-based capital ratio

 

13.35

 

 

13.17

 

 

13.31

 

 

13.80

 

 

14.11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FTE employees, end of period

 

225

 

 

222

 

 

227

 

 

232

 

 

231

 

 

Footnotes:

 

(1) 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

 

6/30/22

 

3/31/22

 

12/31/21

 

9/30/21

 

6/30/21

Efficiency Ratio

(in thousands)

 

 

Net interest income

$

11,680

 

 

$

11,114

 

 

$

11,007

 

 

$

11,621

 

 

$

10,914

 

Non-interest income

 

2,256

 

 

 

2,238

 

 

 

1,984

 

 

 

2,436

 

 

 

2,135

 

Less: Net gain (loss) on securities

 

(3

)

 

 

 

 

 

 

 

 

465

 

 

 

(5

)

Revenue used for efficiency ratio

 

13,939

 

 

 

13,352

 

 

 

12,991

 

 

 

13,592

 

 

 

13,054

 

Non-interest expense

 

8,227

 

 

 

7,971

 

 

 

7,983

 

 

 

8,050

 

 

 

7,954

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

59.02

%

 

 

59.70

%

 

 

61.45

%

 

 

59.23

%

 

 

60.93

%

       
       

 

Six Months Ended

 

 

 

6/30/22

 

6/30/21

 

 

 

(in thousands)

 

 

Efficiency Ratio

 

 

 

 

 

Net interest income

$

22,794

 

 

$

21,594

 

 

 

Non-interest income

 

4,494

 

 

 

4,019

 

 

 

Less: Net gain (loss) on securities

 

(3

)

 

 

(5

)

 

 

Revenue used for efficiency ratio

 

27,291

 

 

 

25,618

 

 

 

Non-interest expense

 

16,198

 

 

 

15,938

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

59.35

%

 

 

62.21

%

 

 

     
(2) Investment Securities – The following table sets forth the amortized cost and fair value of our securities portfolio at the dates indicated.

 

June 30, 2022

 

 

March 31, 2022

 

 

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses 

 

Fair

Value

 

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses 

 

Fair

Value

 

 

 

(dollars in thousands)

 

Securities available for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and federal agencies

 

$

26,438

 

 

$

 

 

$

(2,062

)

 

$

24,376

 

 

$

26,952

 

 

$

 

 

$

(1,196

)

 

$

25,756

 

Agency mortgage-backed residential

 

 

87,182

 

 

 

42

 

 

 

(8,864

)

 

 

78,360

 

 

 

90,589

 

 

 

177

 

 

 

(5,097

)

 

 

85,669

 

Collateralized loan obligations

 

 

48,216

 

 

 

 

 

 

(2,038

)

 

 

46,178

 

 

 

48,221

 

 

 

 

 

 

(297

)

 

 

47,924

 

Corporate bonds

 

 

45,473

 

 

 

16

 

 

 

(1,381

)

 

 

44,108

 

 

 

45,453

 

 

 

221

 

 

 

(952

)

 

 

44,722

 

Total available for sale

 

$

207,309

 

 

$

58

 

 

$

(14,345

)

 

$

193,022

 

 

$

211,215

 

 

$

398

 

 

$

(7,542

)

 

$

204,071

 

 

 

 

 

 

 

 

 

 

 

Amortized

Cost

 

 

Gross

Unrecognized

Gains

 

 

Gross

Unrecognized

Losses 

 

Fair

Value

 

 

Amortized

Cost

 

 

Gross

Unrecognized

Gains

 

 

Gross

Unrecognized

Losses 

 

Fair

Value

 

 

 

(dollars in thousands)

 

Securities held to maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State and municipal

 

$

44,205

 

 

3

 

 

$

(7,985

)

 

$

36,223

 

 

$

45,639

 

 

24

 

 

$

(4,873

)

 

$

40,790

 

Total held to maturity

 

$

44,205

 

 

$

3

 

 

$

(7,985

)

 

$

36,223

 

 

$

45,639

 

 

$

24

 

 

$

(4,873

)

 

$

40,790

 

 

(3) 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

 

 

6/30/22

 

 

3/31/22

 

 

12/31/21

 

 

9/30/21

 

 

6/30/21

Tangible Book Value Per Share

(in thousands, except share and per share data)

 

 

Common stockholders’ equity

$

126,618

 

$

128,220

 

$

130,959

 

$

128,664

 

$

123,959

Less: Goodwill

 

6,252

 

 

6,252

 

 

6,252

 

 

6,252

 

 

6,252

Less: Intangible assets

 

1,861

 

 

1,925

 

 

1,989

 

 

2,053

 

 

2,117

Tangible common equity

 

118,505

 

 

120,043

 

 

122,718

 

 

120,359

 

 

115,590

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding

 

7,640,680

 

 

7,622,157

 

 

7,594,749

 

 

7,602,686

 

 

7,602,686

Tangible book value per common share

$

15.51

 

$

15.75

 

$

16.16

 

$

15.83

 

$

15.20

Book value per common share

 

16.57

 

 

16.82

 

 

17.24

 

 

16.92

 

 

16.30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4) Loans by Risk Category reflect management’s risk ratings based on categories aligned with the bank regulatory definitions.

 

Contacts

John T. Taylor

Chief Executive Officer

(502) 499-4800

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