|
|
|
|
|
|
|
|
|
|
|
Contract Amount
|
|
|
|
June 30,
|
|
|
December 31,
|
|
(dollars in thousands)
|
|
2019
|
|
|
2018
|
|
Standby letters of credit
|
|
$
|
5,216
|
|
|
$
|
4,288
|
|
Available portion of lines of credit
|
|
|
221,562
|
|
|
|
186,446
|
|
Undisbursed portion of loans in process
|
|
|
125,676
|
|
|
|
108,307
|
|
Commitments to originate loans
|
|
|
78,434
|
|
|
|
92,656
|
|
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition
established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to be drawn upon, the total commitment amounts generally
represent future cash requirements.
Unfunded commitments under commercial lines of credit, revolving credit lines and overdraft protection agreements are
commitments for possible future extensions of credit to existing customers. These lines of credit usually do not contain a specified maturity date and may not be drawn upon to the total extent to which the Company is committed.
The Company is subject to certain claims and litigation arising in the ordinary course of business. In the opinion of management, after consultation with
legal counsel, the ultimate disposition of these matters is not expected to have a material effect on the financial condition or results of operations of the Company.
RESULTS OF OPERATIONS
During the second quarter of 2019,
the Company earned $6.6 million, a decrease of $1.2 million, or 15.4%, compared to the second quarter of 2018. Diluted earnings per share for the second quarter of 2019 were $0.71, a decrease of $0.12, or 14.5%, compared to the second
quarter of 2018. Net income for the six months ended June 30, 2019 included facilities-related charges of $504,000, net of tax. Net income for the second quarter of 2018 included merger-related expenses of $894,000, net of tax.
During the six months ended June 30, 2019, the Company earned $14.5 million, a decrease of $769,000, or 5.0%, compared to the six months ended
June 30, 2018. Diluted earnings per share for the six months ended June 30, 2019 were $1.56, a decrease of $0.08, or 4.9%, compared to the six months ended June 30, 2018. Net income for the six months ended June 30, 2019 included
facilities-related charges of $504,000, net of tax. Net income for the six months ended June 30, 2018 included merger-related expenses of $1.6 million, net of tax.
Net Interest Income
Net interest income is the difference between the interest income earned on interest-earning assets, such as loans and
investment securities, and the interest expense paid on interest-bearing liabilities, such as deposits and borrowings. The Companys net interest income is largely determined by our net interest spread, which is the difference between the
average yield earned on interest-earning assets and the average rate paid on interest-bearing liabilities, and the relative amounts of interest-earning assets and interest-bearing liabilities. The Companys
tax-equivalent
net interest spread was 4.05% and 4.51% for the three months ended June 30, 2019 and June 30, 2018, respectively, and 4.08% and 4.42% for the six months ended June 30, 2019 and
June 30, 2018, respectively. The Companys
tax-equivalent
net interest margin, which is net interest income as a percentage of average interest-earning assets, was 4.36% and 4.69% for the three
months ended June 30, 2019 and June 30, 2018, respectively, and 4.39% and 4.59% for the six months ended June 30, 2019 and June 30, 2018, respectively. The decreases in our spread and margin noted above were largely due to
increased funding costs.
Net interest income totaled $21.9 million for the three months ended June 30, 2019, a decrease of $1.5 million,
or 6.3%, compared to the three months ended June 30, 2018. For the six months ended June 30, 2019 net interest income totaled $43.6 million, a decrease of $2.2 million, or 4.9%, compared to the six months ended June 30,
2018. Net interest income decreased primarily due to an increase in the cost of deposits in both the three- and
six-month
periods ended June 30, 2019 over the comparable periods.
35