LOUISVILLE, Ky.–(BUSINESS WIRE)–$LMST–Limestone Bancorp, Inc. (NASDAQ: LMST) (“the Company”), parent company of Limestone Bank (“the Bank”), today reported unaudited results for the third quarter of 2019. Net income available to common shareholders for the third quarter of 2019 was $2.3 million, or $0.31 per basic and diluted common share, compared with $2.4 million, or $0.33 per basic and diluted share, for the third quarter of 2018. Net income for the nine months ended September 30, 2019, was $8.8 million, or $1.17 per diluted common share, compared with net income of $6.4 million, or $0.90 per diluted share, for the nine months ended September 30, 2018.
Net income before taxes was $2.8 million and $8.8 million for the third quarter of 2019 and for the first nine months of 2019, respectively, compared to $3.0 million and $7.8 million for the third quarter and first nine months of 2018, respectively. Income tax expense was $531,000 and $43,000 for the third quarter of 2019 and for the first nine months of 2019, respectively, compared to income tax expense of $604,000 and $1.4 million for the third quarter of 2018 and for the first nine months of 2018, respectively.
Income Taxes – During the first and second quarters of 2019, the Company benefitted from the enactment of state tax legislation eliminating the Kentucky bank franchise tax which is assessed at a rate of 1.1% of average capital. The legislation implements a state income tax for the Bank at a statutory rate of 5%. The new Kentucky income tax will go into effect on January 1, 2021, and the Company will begin filing a Kentucky combined filing in 2021. The enactment resulted in a tax benefit of $341,000, or $0.05 per basic and diluted share in the first quarter of 2019 and $1.2 million, or approximately $0.16 per basic and diluted share in the second quarter of 2019.
Net Interest Income – On a sequential quarter basis, net interest income was under pressure as the Federal Reserve lowered its federal funds target rate by 25 basis points on July 31, 2019 and again by 25 basis points on September 18, 2019. The Company’s interest rate risk profile is marginally asset sensitive as its assets generally reprice more quickly than its liabilities over a twelve-month horizon. In particular, the Fed’s actions served to lower rates on the short end of the yield curve impacting yields on fed funds, certain floating rate investment securities, and loans with variable rate pricing features. As of September 30, 2019, time deposits comprise $488.1 million of the Company’s liabilities with $432.3 million, or 89% set to reprice or mature within one year.
Net interest income decreased to $8.7 million for the third quarter of 2019, compared with $8.8 million in the second quarter of 2019 and increased from $8.4 million in the third quarter of 2018. Average loans increased to $800.2 million for the third quarter of 2019, compared to $793.5 million for the second quarter of 2019 and $748.4 million for the third quarter of 2018. Net interest margin decreased to 3.35% in the third quarter of 2019, compared with 3.42% for the second quarter of 2019 and 3.45% for the third quarter of 2018.
The yield on earning assets decreased to 4.79% for the third quarter of 2019, compared to 4.81% for the second quarter of 2019 and increased from 4.56% in the third quarter of 2018. 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 $247,000, $167,000, and $140,000 for the quarters ended September 30, 2019, June 30, 2019, and September 30, 2018, respectively. This represents nine basis points, six basis points, and five basis points of yield on earning assets and net interest margin for the quarters ended September 30, 2019, June 30, 2019, and September 30, 2018, respectively. The cost of interest-bearing liabilities was 1.75% for the third quarter of 2019, compared to 1.68% for the second quarter of 2019 and 1.32% for the third quarter of 2018. Net interest income and the cost of interest-bearing liabilities for the third quarter of 2019 were also impacted by the July 23, 2019, subordinated debt issuance of $17.0 million at a fixed rate of 5.75%. This capital will be deployed in the pending branch acquisition transaction announced on July 24, 2019, which is expected to close on or about November 15, 2019.
Net interest income increased to $26.5 million for the first nine months of 2019, compared with $25.0 million in the first nine months of 2018. Average loans increased to $786.8 million for the first nine months of 2019, compared to $735.9 million for the first nine months of 2018. Net interest margin decreased to 3.46% in the first nine months of 2019, compared with 3.55% for the first nine months of 2018.
The yield on earning assets increased to 4.83% for the first nine months of 2019, compared to 4.51% for the first nine months of 2018. The amount of loan fee income included in total interest income was $960,000 and $329,000 for the nine months ended September 30, 2019 and September 30, 2018, respectively. This represents 13 basis points and five basis points of yield on earning assets and net interest margin for the nine months ended September 30, 2019 and 2018, respectively. The cost of interest-bearing liabilities was 1.67% for the first nine months of 2019, compared to 1.14% in the first nine months of 2018.
Provision and Allowance for Loan Losses – The allowance for loan losses to total loans was 1.11% at September 30, 2019, compared to 1.10% at June 30, 2019, and 1.14% at September 30, 2018. Net loan recoveries were $72,000 and $24,000, respectively, for the three and nine months ended September 30, 2019, compared to net loan recoveries of $404,000 and $932,000, respectively, for the three and nine months ended September 30, 2018. Based upon historically strong trends in asset quality and management’s assessment of risk in the loan portfolio, no provision for loan losses was recorded for the three and nine months ended September 30, 2019, compared to a negative provision for loan losses of $350,000 and $500,000, or $0.04 and $0.06 per dilute share, for the three and nine months ended September 30, 2018, respectively.
Non-performing Assets – Non-performing assets, which include loans on nonaccrual, accruing troubled debt restructurings, loans past due 90 days and still accruing, and other real estate owned (“OREO”), decreased to $5.8 million, or 0.51% of total assets, at September 30, 2019, compared with $6.2 million, or 0.55% of total assets, at June 30, 2019, and decreased compared to $7.4 million, or 0.70% of total assets, at September 30, 2018. Non-performing loans decreased to $2.6 million, or 0.32% of total loans, at September 30, 2019, compared with $2.9 million, or 0.37% of total loans, at June 30, 2019, and decreased from $3.6 million, or 0.48% of total loans, at September 30, 2018.
OREO remained unchanged at $3.2 million at September 30, 2019, compared to June 30, 2019, and decreased compared to $3.8 million at September 30, 2018. There were no fair value write-downs during the third quarter of 2019 and $260,000 for the nine months ended September 30, 2019, compared to $260,000 and $585,000 for the three and nine months ended September 30, 2018, respectively.
Non-interest Income and Expense – Non-interest income for the first nine months of 2019 increased $157,000 to $4.3 million, compared with $4.1 million for the first nine months of 2018. The increase was primarily due to an increase in bank card interchange fees of $469,000 partially offset by a decrease in other non-interest income of $150,000 related to the one-time gain on the sale of the secondary market residential servicing rights portfolio. Non-interest expense increased $152,000, or 0.7% to $22.0 million for the first nine months of 2019, compared with $21.8 million for the first nine months of 2018. The increase was primarily due to increases of $466,000 in salary and employee benefits, as the Bank added sales talent and customer facing associates during the second and third quarters of 2019, and $238,000 in deposit account related expense partially offset by decreases in OREO expenses of $257,000, and FDIC insurance expense of $228,000.
Non-interest income for the third quarter of 2019 increased $25,000 to $1.5 million, compared with $1.5 million for the third quarter of 2018. The increase from the third quarter of 2018 was primarily due to an increase in bank card interchange fees of $212,000 partially offset by a decrease in other non-interest income of $150,000 related to a one-time gain on the sale of the Bank’s fully amortized secondary market residential mortgage servicing rights portfolio during the third quarter of 2018. Non-interest expense increased $221,000, or 3.1% to $7.5 million for the third quarter of 2019, compared with $7.2 million for the third quarter of 2018. The increase from the third quarter of 2018 was primarily due to an increase of $309,000 in salaries and employee benefits.
Capital – At September 30, 2019, the Bank’s Tier 1 leverage ratio was 11.25%, compared with 10.01% at June 30, 2019, and its Total risk-based capital ratio was 14.89% at September 30, 2019, compared with 13.26% at June 30, 2019. At September 30, 2019, the Bank’s Common equity Tier 1 risk-based capital ratio was 13.87%, compared with 12.26% at June 30, 2019. At September 30, 2019, the Company’s Tier 1 leverage ratio was 9.66%, compared with 9.46% at June 30, 2019, and its Total risk-based capital ratio was 14.84%, compared with 12.56% at June 30, 2019. At September 30, 2019, the Company’s Common equity Tier 1 risk-based capital ratio was 10.19%, compared with 9.82% at June 30, 2019.
The Company’s capital ratios were positively impacted by the $17.0 million of subordinated notes issued during the third quarter, as the subordinated notes meet the requirements to qualify as Tier 2 capital. The Bank’s capital ratios also benefitted as the Company contributed $10.0 million of the proceeds to the Bank as Common Equity Tier 1 Capital.
About Limestone Bancorp, Inc.
Limestone Bancorp, Inc. (NASDAQ: LMST) is a Louisville, Kentucky-based bank holding company which operates banking centers in 12 counties through its wholly-owned subsidiary Limestone Bank. The Bank’s markets include metropolitan Louisville in Jefferson County and the surrounding counties of Henry and Bullitt, and extend south along the Interstate 65 corridor. The Bank serves southern and south central Kentucky from banking centers in Butler, Green, Hart, Edmonson, Barren, Warren, Ohio and Daviess counties. The Bank also has a banking center in Lexington, Kentucky, the second largest city in the state. 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: 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 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, 2018.
Additional Information
Unaudited supplemental financial information for the third quarter ending September 30, 2019, follows.
|
LIMESTONE BANCORP, INC. |
|||||||||||||
|
Unaudited Financial Information |
|||||||||||||
|
(in thousands, except share and per share data) |
|||||||||||||
|
|
Three |
|
Three |
|
Nine |
|
Nine |
|
|||||
|
|
Months |
|
Months |
|
Months |
|
Months |
|
|||||
|
|
Ended |
|
Ended |
|
Ended |
|
Ended |
|
|||||
|
|
9/30/19 |
|
9/30/18 |
|
9/30/19 |
|
9/30/18 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||
|
Income Statement Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
$ |
12,485 |
|
$ |
11,120 |
|
$ |
37,047 |
|
$ |
31,720 |
|
|
|
Interest expense |
|
3,755 |
|
|
2,708 |
|
|
10,558 |
|
|
6,753 |
|
|
|
Net interest income |
|
8,730 |
|
|
8,412 |
|
|
26,489 |
|
|
24,967 |
|
|
|
Provision (negative provision) for loan losses |
|
— |
|
|
(350 |
) |
|
— |
|
|
(500 |
) |
|
|
Net interest income after provision |
|
8,730 |
|
|
8,762 |
|
|
26,489 |
|
|
25,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
633 |
|
|
608 |
|
|
1,700 |
|
|
1,767 |
|
|
|
Bank card interchange fees |
|
623 |
|
|
411 |
|
|
1,727 |
|
|
1,258 |
|
|
|
Bank owned life insurance income |
|
97 |
|
|
100 |
|
|
314 |
|
|
337 |
|
|
|
Gain (loss) on sales and calls of securities, net |
|
— |
|
|
— |
|
|
(5 |
) |
|
(6 |
) |
|
|
Other |
|
181 |
|
|
390 |
|
|
528 |
|
|
751 |
|
|
|
Non-interest income |
|
1,534 |
|
|
1,509 |
|
|
4,264 |
|
|
4,107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries & employee benefits |
|
4,202 |
|
|
3,893 |
|
|
12,032 |
|
|
11,566 |
|
|
|
Occupancy and equipment |
|
880 |
|
|
896 |
|
|
2,632 |
|
|
2,671 |
|
|
|
Professional fees |
|
254 |
|
|
186 |
|
|
598 |
|
|
613 |
|
|
|
Marketing expense |
|
251 |
|
|
259 |
|
|
690 |
|
|
867 |
|
|
|
FDIC insurance |
|
— |
|
|
118 |
|
|
211 |
|
|
439 |
|
|
|
Data processing expense |
|
315 |
|
|
281 |
|
|
943 |
|
|
912 |
|
|
|
State franchise and deposit tax |
|
315 |
|
|
282 |
|
|
945 |
|
|
846 |
|
|
|
Deposit account related expense |
|
300 |
|
|
213 |
|
|
891 |
|
|
653 |
|
|
|
Other real estate owned expense |
|
25 |
|
|
271 |
|
|
333 |
|
|
590 |
|
|
|
Litigation and loan collection expense |
|
32 |
|
|
61 |
|
|
112 |
|
|
162 |
|
|
|
Other |
|
877 |
|
|
770 |
|
|
2,569 |
|
|
2,485 |
|
|
|
Non-interest expense |
|
7,451 |
|
|
7,230 |
|
|
21,956 |
|
|
21,804 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
2,813 |
|
|
3,041 |
|
|
8,797 |
|
|
7,770 |
|
|
|
Income tax expense |
|
531 |
|
|
604 |
|
|
43 |
|
|
1,416 |
|
|
|
Net income |
$ |
2,282 |
|
$ |
2,437 |
|
$ |
8,754 |
|
$ |
6,354 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares – Basic |
|
7,471,582 |
|
|
7,455,316 |
|
|
7,467,048 |
|
|
7,059,472 |
|
|
|
Weighted average shares – Diluted |
|
7,471,582 |
|
|
7,455,316 |
|
|
7,467,048 |
|
|
7,059,472 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
$ |
0.31 |
|
$ |
0.33 |
|
$ |
1.17 |
|
$ |
0.90 |
|
|
|
Diluted earnings per common share |
$ |
0.31 |
|
$ |
0.33 |
|
$ |
1.17 |
|
$ |
0.90 |
|
|
|
Cash dividends declared per common share |
$ |
0.00 |
|
$ |
0.00 |
|
$ |
0.00 |
|
$ |
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
||||||
|
|
9/30/19 |
|
6/30/19 |
|
3/31/19 |
|
12/31/18 |
|
9/30/18 |
|
||||||
|
Income Statement Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
$ |
12,485 |
|
$ |
12,376 |
|
$ |
12,186 |
|
$ |
11,741 |
|
$ |
11,120 |
|
|
|
Interest expense |
|
3,755 |
|
|
3,576 |
|
|
3,227 |
|
|
3,037 |
|
|
2,708 |
|
|
|
Net interest income |
|
8,730 |
|
|
8,800 |
|
|
8,959 |
|
|
8,704 |
|
|
8,412 |
|
|
|
Provision (negative provision) for loan losses |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(350 |
) |
|
|
Net interest income after provision |
|
8,730 |
|
|
8,800 |
|
|
8,959 |
|
|
8,704 |
|
|
8,762 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
633 |
|
|
571 |
|
|
496 |
|
|
588 |
|
|
608 |
|
|
|
Bank card interchange fees |
|
623 |
|
|
596 |
|
|
508 |
|
|
573 |
|
|
411 |
|
|
|
Bank owned life insurance income |
|
97 |
|
|
118 |
|
|
99 |
|
|
100 |
|
|
100 |
|
|
|
Gain (loss) on sales and calls of securities, net |
|
— |
|
|
(5 |
) |
|
— |
|
|
— |
|
|
— |
|
|
|
Other |
|
181 |
|
|
166 |
|
|
181 |
|
|
411 |
|
|
390 |
|
|
|
Non-interest income |
|
1,534 |
|
|
1,446 |
|
|
1,284 |
|
|
1,672 |
|
|
1,509 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries & employee benefits |
|
4,202 |
|
|
3,915 |
|
|
3,915 |
|
|
3,923 |
|
|
3,893 |
|
|
|
Occupancy and equipment |
|
880 |
|
|
854 |
|
|
898 |
|
|
915 |
|
|
896 |
|
|
|
Professional fees |
|
254 |
|
|
179 |
|
|
165 |
|
|
201 |
|
|
186 |
|
|
|
Marketing expense |
|
251 |
|
|
212 |
|
|
227 |
|
|
247 |
|
|
259 |
|
|
|
FDIC insurance |
|
— |
|
|
103 |
|
|
108 |
|
|
118 |
|
|
118 |
|
|
|
Data processing expense |
|
315 |
|
|
315 |
|
|
313 |
|
|
280 |
|
|
281 |
|
|
|
State franchise and deposit tax |
|
315 |
|
|
315 |
|
|
315 |
|
|
272 |
|
|
282 |
|
|
|
Deposit account related expense |
|
300 |
|
|
310 |
|
|
281 |
|
|
170 |
|
|
213 |
|
|
|
Other real estate owned expense |
|
25 |
|
|
142 |
|
|
166 |
|
|
278 |
|
|
271 |
|
|
|
Litigation and loan collection expense |
|
32 |
|
|
34 |
|
|
46 |
|
|
83 |
|
|
61 |
|
|
|
Other |
|
877 |
|
|
845 |
|
|
847 |
|
|
835 |
|
|
770 |
|
|
|
Non-interest expense |
|
7,451 |
|
|
7,224 |
|
|
7,281 |
|
|
7,322 |
|
|
7,230 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
2,813 |
|
|
3,022 |
|
|
2,962 |
|
|
3,054 |
|
|
3,041 |
|
|
|
Income tax expense (benefit) |
|
531 |
|
|
(611 |
) |
|
123 |
|
|
614 |
|
|
604 |
|
|
|
Net income |
$ |
2,282 |
|
$ |
3,633 |
|
$ |
2,839 |
|
$ |
2,440 |
|
$ |
2,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares – Basic |
|
7,471,582 |
|
|
7,459,631 |
|
|
7,469,912 |
|
|
7,457,206 |
|
|
7,455,316 |
|
|
|
Weighted average shares – Diluted |
|
7,471,582 |
|
|
7,459,631 |
|
|
7,469,912 |
|
|
7,457,206 |
|
|
7,455,316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
$ |
0.31 |
|
$ |
0.49 |
|
$ |
0.38 |
|
$ |
0.33 |
|
$ |
0.33 |
|
|
|
Diluted earnings per common share |
$ |
0.31 |
|
$ |
0.49 |
|
$ |
0.38 |
|
$ |
0.33 |
|
$ |
0.33 |
|
|
|
Cash dividends declared per common share |
$ |
0.00 |
|
$ |
0.00 |
|
$ |
0.00 |
|
$ |
0.00 |
|
$ |
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIMESTONE BANCORP, INC. |
||||||||||||||||||
|
Unaudited Financial Information |
||||||||||||||||||
|
(in thousands, except share and per share data) |
||||||||||||||||||
|
|
|
As of |
|
|||||||||||||||
|
|
|
9/30/19 |
|
6/30/19 |
|
3/31/19 |
|
|
12/31/18 |
|
|
9/30/18 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
803,569 |
|
$ |
803,114 |
|
$ |
786,585 |
|
$ |
765,244 |
|
$ |
757,051 |
|
|
|
|
|
Allowance for loan losses |
|
(8,904 |
) |
|
(8,832 |
) |
|
(8,686 |
) |
|
(8,880 |
) |
|
(8,634 |
) |
|
|
|
|
Net loans |
|
794,665 |
|
|
794,282 |
|
|
777,899 |
|
|
756,364 |
|
|
748,417 |
|
|
|
|
|
Securities available for sale |
|
203,381 |
|
|
208,614 |
|
|
206,411 |
|
|
201,192 |
|
|
184,870 |
|
|
|
|
|
Federal funds sold & interest bearing deposits |
|
50,327 |
|
|
40,755 |
|
|
24,029 |
|
|
28,398 |
|
|
31,761 |
|
|
|
|
|
Cash and due from financial institutions |
|
7,680 |
|
|
6,860 |
|
|
6,461 |
|
|
6,963 |
|
|
5,770 |
|
|
|
|
|
Premises and equipment |
|
15,098 |
|
|
14,827 |
|
|
14,926 |
|
|
14,655 |
|
|
17,027 |
|
|
|
|
|
Premises held for sale |
|
935 |
|
|
995 |
|
|
1,050 |
|
|
1,050 |
|
|
— |
|
|
|
|
|
Bank owned life insurance |
|
15,946 |
|
|
15,853 |
|
|
15,739 |
|
|
15,646 |
|
|
15,551 |
|
|
|
|
|
FHLB Stock |
|
6,467 |
|
|
6,693 |
|
|
6,813 |
|
|
7,233 |
|
|
7,233 |
|
|
|
|
|
Other real estate owned |
|
3,225 |
|
|
3,225 |
|
|
3,335 |
|
|
3,485 |
|
|
3,750 |
|
|
|
|
|
Deferred taxes, net |
|
28,029 |
|
|
28,708 |
|
|
28,568 |
|
|
29,282 |
|
|
30,230 |
|
|
|
|
|
Accrued interest receivable and other assets |
|
6,411 |
|
|
5,976 |
|
|
6,092 |
|
|
5,424 |
|
|
5,882 |
|
|
|
|
|
Total Assets |
$ |
1,132,164 |
|
$ |
1,126,788 |
|
$ |
1,091,323 |
|
$ |
1,069,692 |
|
$ |
1,050,491 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of deposit |
$ |
488,121 |
|
$ |
505,263 |
|
$ |
465,369 |
|
$ |
450,886 |
|
$ |
457,239 |
|
|
|
|
|
Interest checking |
|
95,508 |
|
|
95,296 |
|
|
96,537 |
|
|
94,269 |
|
|
87,407 |
|
|
|
|
|
Money market |
|
153,663 |
|
|
162,917 |
|
|
166,430 |
|
|
171,924 |
|
|
159,499 |
|
|
|
|
|
Savings |
|
34,618 |
|
|
33,553 |
|
|
34,066 |
|
|
34,534 |
|
|
34,320 |
|
|
|
|
|
Total interest bearing deposits |
|
771,910 |
|
|
797,029 |
|
|
762,402 |
|
|
751,613 |
|
|
738,465 |
|
|
|
|
|
Demand deposits |
|
151,524 |
|
|
141,448 |
|
|
146,440 |
|
|
142,618 |
|
|
135,561 |
|
|
|
|
|
Total deposits |
|
923,434 |
|
|
938,477 |
|
|
908,842 |
|
|
894,231 |
|
|
874,026 |
|
|
|
|
|
FHLB advances |
|
56,430 |
|
|
51,470 |
|
|
51,511 |
|
|
46,549 |
|
|
51,591 |
|
|
|
|
|
Junior subordinated debentures |
|
21,000 |
|
|
21,000 |
|
|
21,000 |
|
|
21,000 |
|
|
21,000 |
|
|
|
|
|
Subordinated capital note |
|
17,000 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
Senior debt |
|
5,000 |
|
|
10,000 |
|
|
10,000 |
|
|
10,000 |
|
|
10,000 |
|
|
|
|
|
Accrued interest payable and other liabilities |
|
4,973 |
|
|
4,419 |
|
|
3,651 |
|
|
5,815 |
|
|
5,662 |
|
|
|
|
|
Total liabilities |
|
1,027,837 |
|
|
1,025,366 |
|
|
995,004 |
|
|
977,595 |
|
|
962,279 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total common stockholders’ equity |
|
104,327 |
|
|
101,422 |
|
|
96,319 |
|
|
92,097 |
|
|
88,212 |
|
|
|
|
|
Total Liabilities and Stockholders’ Equity |
$ |
1,132,164 |
|
$ |
1,126,788 |
|
$ |
1,091,323 |
|
$ |
1,069,692 |
|
$ |
1,050,491 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending shares outstanding |
|
7,471,582 |
|
|
7,457,832 |
|
|
7,460,614 |
|
|
7,462,720 |
|
|
7,456,590 |
|
|
|
|
|
Book value per common share |
$ |
13.96 |
|
$ |
13.60 |
|
$ |
12.91 |
|
$ |
12.34 |
|
$ |
11.83 |
|
|
|
|
|
Tangible book value per common share |
|
13.96 |
|
|
13.60 |
|
|
12.91 |
|
|
12.34 |
|
|
11.83 |
|
|
|
|
|
LIMESTONE BANCORP, INC. |
|||||||||||||||||||
|
Unaudited Financial Information |
|||||||||||||||||||
|
(in thousands, except share and per share data) |
|||||||||||||||||||
|
|
|
As of |
|
||||||||||||||||
|
|
|
9/30/19 |
|
|
6/30/19 |
|
|
3/31/19 |
|
|
12/31/18 |
|
|
9/30/18 |
|
|
|
|
|
|
Average Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
$ |
1,105,432 |
|
$ |
1,100,459 |
|
$ |
1,075,553 |
|
$ |
1,066,216 |
|
$ |
1,037,636 |
|
|
|
|
|
|
Loans |
|
800,194 |
|
|
793,460 |
|
|
766,505 |
|
|
765,542 |
|
|
748,444 |
|
|
|
|
|
|
Earning assets |
|
1,035,522 |
|
|
1,033,581 |
|
|
1,009,948 |
|
|
1,001,093 |
|
|
968,876 |
|
|
|
|
|
|
Deposits |
|
933,548 |
|
|
926,730 |
|
|
900,829 |
|
|
895,377 |
|
|
869,707 |
|
|
|
|
|
|
Long-term debt and advances |
|
63,369 |
|
|
71,989 |
|
|
76,524 |
|
|
75,339 |
|
|
74,994 |
|
|
|
|
|
|
Interest bearing liabilities |
|
852,539 |
|
|
855,100 |
|
|
834,637 |
|
|
824,300 |
|
|
810,917 |
|
|
|
|
|
|
Stockholders’ equity |
|
103,818 |
|
|
97,730 |
|
|
93,491 |
|
|
89,836 |
|
|
87,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Performance Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
0.82 |
% |
|
1.32 |
% |
|
1.07 |
% |
|
0.91 |
% |
|
0.93 |
% |
|
|
|
|
|
Return on average equity |
|
8.72 |
|
|
14.91 |
|
|
12.32 |
|
|
10.78 |
|
|
11.05 |
|
|
|
|
|
|
Yield on average earning assets (tax equivalent) |
|
4.79 |
|
|
4.81 |
|
|
4.90 |
|
|
4.66 |
|
|
4.56 |
|
|
|
|
|
|
Cost of interest bearing liabilities |
|
1.75 |
|
|
1.68 |
|
|
1.57 |
|
|
1.46 |
|
|
1.32 |
|
|
|
|
|
|
Net interest margin (tax equivalent) |
|
3.35 |
|
|
3.42 |
|
|
3.61 |
|
|
3.46 |
|
|
3.45 |
|
|
|
|
|
|
Efficiency ratio |
|
72.59 |
|
|
70.47 |
|
|
71.08 |
|
|
70.57 |
|
|
72.88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
$ |
2,389 |
|
$ |
2,028 |
|
$ |
1,921 |
|
$ |
1,991 |
|
$ |
2,692 |
|
|
|
|
|
|
Troubled debt restructurings on accrual |
|
188 |
|
|
905 |
|
|
910 |
|
|
910 |
|
|
910 |
|
|
|
|
|
|
Loan 90 days or more past due still on accrual |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
Total non-performing loans |
|
2,577 |
|
|
2,933 |
|
|
2,831 |
|
|
2,901 |
|
|
3,602 |
|
|
|
|
|
|
Real estate acquired through foreclosures |
|
3,225 |
|
|
3,225 |
|
|
3,335 |
|
|
3,485 |
|
|
3,750 |
|
|
|
|
|
|
Other repossessed assets |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
Total non-performing assets |
$ |
5,802 |
|
$ |
6,158 |
|
$ |
6,166 |
|
$ |
6,386 |
|
$ |
7,352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans to total loans |
|
0.32 |
% |
|
0.37 |
% |
|
0.36 |
% |
|
0.38 |
% |
|
0.48 |
% |
|
|
|
|
|
Non-performing assets to total assets |
|
0.51 |
|
|
0.55 |
|
|
0.57 |
|
|
0.60 |
|
|
0.70 |
|
|
|
|
|
|
Allowance for loan losses to non-performing loans |
|
345.52 |
|
|
301.13 |
|
|
306.82 |
|
|
306.10 |
|
|
239.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to total loans |
|
1.11 |
% |
|
1.10 |
% |
|
1.10 |
% |
|
1.16 |
% |
|
1.14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Charge-off Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans charged off |
$ |
(299 |
) |
$ |
(72 |
) |
$ |
(278 |
) |
$ |
(133 |
) |
$ |
(143 |
) |
|
|
|
|
|
Recoveries |
|
371 |
|
|
218 |
|
|
84 |
|
|
379 |
|
|
547 |
|
|
|
|
|
|
Net recoveries (charge-offs) |
$ |
72 |
|
$ |
146 |
|
$ |
(194 |
) |
$ |
246 |
|
$ |
404 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans by Risk Category |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
$ |
754,050 |
|
$ |
767,662 |
|
$ |
756,493 |
|
$ |
745,604 |
|
$ |
736,193 |
|
|
|
|
|
|
Watch |
|
37,537 |
|
|
22,929 |
|
|
17,412 |
|
|
13,164 |
|
|
12,314 |
|
|
|
|
|
|
Special Mention |
|
— |
|
|
— |
|
|
— |
|
|
113 |
|
|
114 |
|
|
|
|
|
|
Substandard |
|
11,982 |
|
|
12,523 |
|
|
12,680 |
|
|
6,363 |
|
|
8,430 |
|
|
|
|
|
|
Doubtful |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
Total |
$ |
803,569 |
|
$ |
803,114 |
|
$ |
786,585 |
|
$ |
765,244 |
|
$ |
757,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans by Past Due Status |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Past due loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30 – 59 days |
$ |
979 |
|
$ |
858 |
|
$ |
2,001 |
|
$ |
1,593 |
|
$ |
1,492 |
|
|
|
|
|
|
60 – 89 days |
|
557 |
|
|
1,015 |
|
|
240 |
|
|
331 |
|
|
929 |
|
|
|
|
|
|
90 days or more |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
Nonaccrual loans |
|
2,389 |
|
|
2,028 |
|
|
1,921 |
|
|
1,991 |
|
|
2,692 |
|
|
|
|
|
|
Total past due and nonaccrual loans |
$ |
3,925 |
|
$ |
3,901 |
|
$ |
4,162 |
|
$ |
3,915 |
|
$ |
5,113 |
|
|
|
|
|
|
|
|||||||||||||||||||
|
LIMESTONE BANCORP, INC. |
|||||||||||||||||||
|
Unaudited Financial Information |
|||||||||||||||||||
|
(in thousands, except share and per share data) |
|||||||||||||||||||
|
|
|
As of |
|||||||||||||||||
|
|
|
9/30/19 |
|
|
6/30/19 |
|
|
3/31/19 |
|
|
12/31/18 |
|
|
9/30/18 |
|
|
|
|
|
|
Risk-based Capital Ratios – Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier I leverage ratio |
|
9.66 |
% |
|
9.46 |
% |
|
9.30 |
% |
|
9.00 |
% |
|
8.91 |
% |
|
|
|
|
|
Common equity Tier I risk-based capital ratio |
|
10.19 |
|
|
9.82 |
|
|
9.57 |
|
|
9.44 |
|
|
9.21 |
|
|
|
|
|
|
Tier I risk-based capital ratio |
|
11.88 |
|
|
11.56 |
|
|
11.29 |
|
|
11.08 |
|
|
10.83 |
|
|
|
|
|
|
Total risk-based capital ratio |
|
14.84 |
|
|
12.56 |
|
|
12.32 |
|
|
12.23 |
|
|
12.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
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|
|
Risk-based Capital Ratios – Limestone Bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier I leverage ratio |
|
11.25 |
% |
|
10.01 |
% |
|
9.88 |
% |
|
9.60 |
% |
|
9.51 |
% |
|
|
|
|
|
Common equity Tier I risk-based capital ratio |
|
13.87 |
|
|
12.26 |
|
|
12.01 |
|
|
11.83 |
|
|
11.56 |
|
|
|
|
|
|
Tier I risk-based capital ratio |
|
13.87 |
|
|
12.26 |
|
|
12.01 |
|
|
11.83 |
|
|
11.56 |
|
|
|
|
|
|
Total risk-based capital ratio |
|
14.89 |
|
|
13.26 |
|
|
13.01 |
|
|
12.88 |
|
|
12.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FTE employees |
|
226 |
|
|
219 |
|
|
207 |
|
|
214 |
|
|
215 |
|
|
|
|
|
Contacts
John T. Taylor
Chief Executive Officer
(502) 499-4800
