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CST: 23/07/2019 20:42:54   

Revere Bank Announces Fourth Quarter and Annual 2018 Record Earnings – 2018 Net Income of $27.6 Million Increased 69.8% Over 2017

175 Days ago

ROCKVILLE, Md., Jan. 29, 2019 (GLOBE NEWSWIRE) -- Revere Bank (the “Bank”) (OTCQX: REVB) today reported record quarterly net income of $7.21 million for the quarter ended December 31, 2018, a 161.1% increase compared to $2.76 million for the quarter ended December 31, 2017 and a 2.9% increase over the quarter ended September 30, 2018.  Pre-tax net income for the quarter ended December 31, 2018 was $9.92 million, an increase of 16.7% compared to $8.50 million for the quarter ended December 31, 2017.  We believe pre-tax net income provides a better comparison to last year due to the impact of the Tax Cuts and Jobs Act (“Tax Act”), as discussed under the Earnings and Growth Highlights section. 

Net income per basic common share for the fourth quarter of 2018 was $0.61 compared to $0.28 for the same period in 2017, an increase of 117.9%. Net income per diluted common share increased 118.5% to $0.59 for the fourth quarter of 2018 compared to $0.27 for the same period in 2017. 

For the year ended December 31, 2018, net income was $27.63 million, a 69.8% increase compared to $16.27 million for the year ended December 31, 2017.  Pre-tax net income increased 24.1% to $37.05 million for the year ended December 31, 2018, from $29.85 million for the year ended December 31, 2017. Net income per basic common share for the year ended December 31, 2018, was $2.62 compared to $1.67 for 2017, an increase of 56.9%. Net income per diluted common share increased 58.5% to $2.52 for the year ended December 31, 2018, compared to $1.59 for 2017.

Quarterly Highlights

  • Pre-tax net income grew by 4.9% compared to the third quarter of 2018 and by 16.7% compared to the fourth quarter of 2017.
  • Period end loans grew 14.9%, or $270.1 million, compared to the fourth quarter of 2017, and grew 4.4%, or $87.3 million, compared to the third quarter of 2018.
  • Period end deposits grew 16.4%, or $293.9 million, compared to the fourth quarter of 2017 and grew 7.1%, or $138.6 million, compared to the third quarter of 2018.  Core deposits, defined as total deposits excluding brokered deposits and listing services deposits, grew 8.0%, or $149.8 million, compared to the third quarter of 2018.  This increase includes approximately $40.0 million of short term deposits that are expected to be withdrawn in the first quarter of 2019.  As adjusted to eliminate the impact of these short term deposits, our fourth quarter 2018 growth of total and core deposits was 5.1% and 5.9%, respectively, compared to the third quarter of 2018.

Drew Flott, Co-President and CEO, said, “We are proud of our growth and increased earnings especially when comparing pre-tax net income, the best apples-to-apples comparison of our year-over-year performance.  We continue to be optimistic about our future.”

Ken Cook, Co-President and CEO, added, “Our strong earnings momentum continued on both a year-over-year and a linked quarter basis, complemented by continued outstanding credit quality. Robust balance sheet growth throughout 2018, but particularly in the fourth quarter, has set the stage for continued healthy income growth in 2019.”

Earnings and Growth Highlights

                     
In thousands, except per share data   4Q 2018   3Q 2018   4Q 2017   YTD 2018   YTD 2017
Pre-tax income   $ 9,917   $ 9,451   $ 8,499   $ 37,052   $ 29,849
Net Income     7,212     7,006     2,762     27,627     16,271
EPS     0.61     0.68     0.28     2.62     1.67
Diluted EPS     0.59     0.65     0.27     2.52     1.59
                     
Loans   $ 2,084,806   $ 1,997,511   $ 1,814,692        
Deposits     2,088,967     1,950,385     1,795,092        
                     

Fourth quarter net income increased $4.45 million, or 161.1%, compared to the fourth quarter of 2017, driven by stronger pre-tax earnings and a lower tax rate in 2018 and the negative impact of the $2.41 million one-time deferred tax charge related to the Tax Act taken during the fourth quarter of 2017.  Pre-tax net income, a more comparable metric, increased $1.42 million, or 16.7%, compared to the quarter ended December 31, 2017, primarily driven by a 17.1% increase in net interest income.  Net income increased $206 thousand, or 2.9%, compared to the third quarter of 2018 also driven by net interest income growth.  The fourth quarter diluted EPS declined compared to the third quarter of 2018, despite higher earnings, due to the incremental shares from the late third quarter capital raise being outstanding for the entire period.  Compared to the prior year quarter, EPS increased significantly due to strong pre-tax net income growth and the previously discussed impacts of the Tax Act.

For the year ended December 31, 2018, net income increased $11.36 million, or 69.8%, compared to 2017.  The change in year-to-date net income was similarly impacted by a lower tax rate in 2018 and the one-time deferred tax charge in the fourth quarter of 2017 related to the Tax Act.  During the year diluted EPS increased $0.93 per share, or 58.5%, as a result of increased pre-tax net income and a decrease in tax expense, as previously mentioned.

The Bank’s continued earnings growth is driven by strong loan and deposit growth.  As of December 31, 2018, loans were $2.08 billion, an increase of 4.4% compared to loans of $2.00 billion as of September 30, 2018, and an increase of 14.9% compared to loans of $1.81 billion as of December 31, 2017.  Deposits increased 7.1% to $2.09 billion as of December 31, 2018, compared to $1.95 billion as of September 30, 2018, and increased 16.4% compared to $1.80 billion as of December 31, 2017. 

Income Statement Review
Net interest income

                     
In thousands   4Q 2018   3Q 2018   4Q 2017   YTD 2018   YTD 2017
Interest income   $ 29,522     $ 27,403     $ 23,466     $ 106,973     $ 88,388  
Interest expense     7,364       6,559       4,543       24,131       16,533  
Net interest income   $ 22,158     $ 20,844     $ 18,923     $ 82,842     $ 71,855  
                     
Yield on interest-earning assets     5.00 %     4.85 %     4.66 %     4.87 %     4.62 %
Cost of interest-bearing liabilities     1.67 %     1.51 %     1.16 %     1.44 %     1.10 %
Net Interest margin     3.75 %     3.69 %     3.76 %     3.77 %     3.76 %
                     

Our net interest income continues to grow and drive increased earnings. Fourth quarter net interest income increased 17.1% compared to the same period last year and 6.3% compared to the prior quarter. Net interest income for the year increased 15.3% compared to last year. Interest income increased for all periods from a combination of strong loan growth and increasing yields on interest-earning assets. Similarly, interest expense has increased due to the competitive rate environment as well as the increased volume of deposits used to fund loan growth.

On a year-to-date basis our net interest margin increased by one basis point from last year to 3.77%. Our current quarter’s net interest margin increased six basis points from the prior quarter and decreased one basis point compared to the same period last year. Our net interest margin has normalized compared to the prior period as we have deployed the funds from the CD campaign and capital raise that took place during the third quarter. Although our loan portfolio is positioned to respond well in a rising rate environment, with approximately one third of our portfolio maturing or repricing within one year, the increasing cost of interest-bearing liabilities outpaced the increases in our interest-earning assets during the year and has continued to put pressure on our net interest margin.  This has been partially mitigated by the successful growth in our non-interest bearing deposits of 13.9% in 2018. As always our focus remains on maintaining the net interest margin and the quality of our loan portfolio.

Provision for Loan Losses
For the fourth quarter of 2018, the provision for loan losses increased $693 thousand and $687 thousand compared to the third quarter of 2018 and fourth quarter of 2017, respectively.  For the year ended December 31, 2018, the provision increased $930 thousand compared to the prior year.  The increase in our provision for the fourth quarter of 2018 and for the year was in line with loan growth during the respective periods. 

Non-interest income and Non-interest expense

                     
Dollars in thousands   4Q 2018   3Q 2018   4Q 2017   YTD 2018   YTD 2017
Non-interest income   $ 632     $ 425     $ 518     $ 2,245     $ 2,128  
Non-interest expense   $ 11,535     $ 11,173     $ 10,291     $ 43,946     $ 40,975  
                     
Efficiency ratio     50.61 %     52.53 %     52.93 %     51.65 %     55.38 %
                     

Non-interest income was $632 thousand for the fourth quarter, an increase of $114 thousand, or 22.0%, compared to the fourth quarter of 2017, and $207 thousand, or 48.7%, compared to the third quarter of 2018.  For the year ended December 31, 2018, total non-interest income increased by 5.5% to $2.25 million, compared to $2.13 million for the year ended December 31, 2017. A $141 thousand recovery received during the fourth quarter of 2018, related to an acquired loan, caused the increase compared to all reported periods.

Non-interest expense increased by $1.24 million, or 12.1%, in the fourth quarter compared to the same period last year. The year-over-year increase was driven by higher salaries and benefits expense, partially offset by lower FDIC premiums due to our stronger capital position. Compared to the third quarter of 2018, non-interest expense increased $362 thousand, or 3.2%, primarily driven by an increase in salaries and benefits and partially offset by decreases in legal and professional fees and lower FDIC premiums due to our stronger capital position. 

For the year, non-interest expense increased $2.97 million, or 7.3%, to $43.95 million, compared to $40.98 million during the year ended 2017.  The year-to-date increase was also primarily the result of an increase in salaries and benefits due to an increase in the number of employees to support our continued growth and the initiation of a brand identity marketing campaign that began during the third quarter of 2018.  

During the fourth quarter our efficiency ratio improved to 50.61% compared to 52.93% in the same period last year and improved for the year ended December 31, 2018, to 51.65% from 55.38% for 2017. The improvement is primarily due to strong net interest income growth, continued economies of scale as we continue to grow, and to a lesser extent, a reduction in acquisition expense compared to the prior year. Compared to the prior quarter our efficiency ratio improved to 50.61% from 52.53% primarily due to an increase in net interest income.

Performance Ratios

             
    4Q 2018   3Q 2018   4Q 2017
Return on average assets (annualized)   1.19 %   1.21 %   0.52 %
Return on average equity (annualized)   10.95 %   13.00 %   5.78 %
             

Return on average assets and return on average equity increased 67 basis points and 517 basis points, respectively, during the quarter compared to the same period last year.  These increases for the fourth quarter over the prior year period were primarily driven by increased earnings and the impact of the Tax Act, as previously discussed.  Return on average assets effectively remained unchanged quarter over quarter.  Return on average equity declined by 205 basis points quarter over quarter as a result of our capital raise late in the third quarter.  We expect our return on equity to normalize once we have fully deployed our new capital.

Balance Sheet Review

             
    At the period ended
Dollars in thousands   Dec. 2018   Sep. 2018   Dec. 2017
Assets   $ 2,455,211   $ 2,317,700   $ 2,098,845
Loans     2,084,806     1,997,511     1,814,692
Deposits     2,088,967     1,950,385     1,795,092
FHLB borrowings     63,456     74,594     77,827
Stockholders' equity     264,891     255,905     188,277
             

Asset growth from December 31, 2017, to December 31, 2018, was $356.4 million, or 17.0%, and was driven primarily by loan growth, and to a lesser extent increases in cash and due from banks and securities available-for-sale.  Assets increased $137.5 million compared to the prior quarter, or 5.9%, also due to loan growth and increases in cash and due from banks and securities available-for-sale.

Loans increased $270.1 million, or 14.9%, compared to December 31, 2017, driven primarily by an increase in commercial real estate loans and commercial loans.  Compared to September 30, 2018, loans increased $87.3 million, or 4.4%, primarily due to commercial real estate loan growth.

Deposits increased $293.9 million, or 16.4%, and $138.6 million, or 7.1%, compared to December 31, 2017 and September 30, 2018, respectively.  As previously mentioned this increase includes approximately $40.0 million of short term deposits that are expected to be withdrawn during the first quarter of 2019.  As adjusted to eliminate the impact of these short term deposits, deposit growth was 14.1% compared to December 31, 2017, and 5.1% compared to September 30, 2018.  The increases for both periods are primarily due to increases in CD and money market deposits. Our non-interest bearing deposits grew by 13.9% compared to December 31, 2017, and by 4.4% compared to September 30, 2018.

Stockholders’ equity increased $76.6 million, or 40.7% compared to December 31, 2017.  The very strong equity growth compared to last year was achieved through record earnings for the year and a successful capital raise that yielded $44.1 million in net capital through the issuance of 1.61 million common shares.  Stockholders’ equity increased by $9.0 million, or 3.5%, compared to September 30, 2018, driven primarily by record earnings for the fourth quarter of 2018.
  
The Bank’s capital ratios remain well above regulatory guidelines for well-capitalized banks. As of December 31, 2018, the Bank’s total risk-based capital ratio and tier 1 leverage ratio were 13.77% and 10.03%, respectively, compared to 11.21% and 7.75%, respectively, as of December 31, 2017.  As of December 31, 2018, the Bank’s tangible equity to total tangible assets ratio was 9.67% compared to 7.60% as of December 31, 2017.

As of December 31, 2018, the Bank’s tangible book value per share was $19.84, up 24.5% compared to $15.94 as of December 31, 2017.  The increase in tangible book value per share was due to strong earnings per share plus approximately $1.41 per share accretion from the capital raise.

Asset Quality Review

             
    At or for the three months ended
Dollars in thousands   Dec. 2018   Sep. 2018   Dec. 2017
Non-performing assets   $ 2,025     $ 1,809     $ 2,206  
Non-performing assets to total assets     0.08 %     0.08 %     0.11 %
             
Loans 30-89 days past due and still accruing interest   $ 793     $ 1,177     $ 575  
Loans 30-89 days past due and still accruing interest to total assets     0.03 %     0.05 %     0.03 %
Quarterly net charge-offs (recoveries)   $ 147     $ -     $ 265  
             

Asset quality continues to remain very strong.  As of December 31, 2018, non-performing assets as a percentage of total assets remained flat at 0.08% compared to September 30, 2018, and decreased from 0.11% at December 31, 2017.  The decrease compared to last year was driven by a decline in non-performing assets as well as an increase in total assets.

Loans 30-89 days past due and still accruing interest decreased $384 thousand compared to the prior period and increased $218 thousand compared to the same period last year.  The Bank had $147 thousand of net charge-offs in the fourth quarter of 2018, compared to $265 thousand of net charge-offs in the fourth quarter of 2017, and compared to no net charge-offs in the third quarter of 2018.  For the year ended December 31, 2018, the Bank reported $204 thousand in net charge-offs compared to net charge-offs of $550 thousand during 2017.

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

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

Contact:

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

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

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

Revere Bank
Consolidated Balance Sheets
(dollars in thousands)
               
      Dec. 31, 2018   Sep. 30, 2018   Dec. 31, 2017
      (Unaudited)   (Unaudited)   (Audited)
Assets          
               
Cash and due from banks   $ 136,442     $ 104,740     $ 70,730  
Federal funds sold     -       12       12  
  Total cash and cash equivalents     136,442       104,752       70,742  
Interest-bearing deposits with banks     -       -       1,470  
Securities available-for-sale, at fair value     187,558       167,911       163,226  
Equity securities, at cost     4,698       5,230       5,150  
Loans     2,084,806       1,997,511       1,814,692  
Less allowance for loan losses     18,712       17,521       14,827  
  Loans, net     2,066,094       1,979,990       1,799,865  
Premises and equipment, net     4,283       4,169       4,227  
Accrued interest receivable     6,854       6,556       5,868  
Deferred tax assets     6,397       6,528       5,233  
Bank owned life insurance     10,902       10,842       10,664  
Goodwill     26,815       26,815       26,815  
Core deposit intangibles     3,627       3,804       4,337  
Other assets     1,541       1,103       1,248  
               
  Total Assets   $ 2,455,211     $ 2,317,700     $ 2,098,845  
               
Liabilities and Stockholders' Equity          
               
Liabilities            
Deposits:            
  Non-interest-bearing demand   $ 368,063     $ 352,560     $ 323,149  
  Interest-bearing     1,720,904       1,597,825       1,471,943  
  Total Deposits     2,088,967       1,950,385       1,795,092  
Federal Home Loan Bank advances     63,456       74,594       77,827  
Subordinated debt, net     30,715       30,690       30,607  
Accrued interest payable     1,320       791       929  
Other liabilities     5,862       5,335       6,113  
               
  Total Liabilities     2,190,320       2,061,795       1,910,568  
               
Stockholders' Equity            
Common stock, par value $5 per share; 30,000,000 shares authorized; shares issued
  and outstanding of 11,817,361 for December 2018, 11,803,007 for September 2018,
  and 9,854,488 for December 2017
  59,087       59,015       49,272  
Surplus     145,076       144,538       104,921  
Retained earnings     62,878       55,473       35,060  
Accumulated other comprehensive loss     (2,150 )     (3,121 )     (976 )
               
  Total Stockholders' Equity     264,891       255,905       188,277  
               
  Total Liabilities and Stockholders' Equity   $ 2,455,211     $ 2,317,700     $ 2,098,845  
               

 

Revere Bank
Consolidated Income Statements
(dollars in thousands, except per share data)
(Unaudited)
                         
        Three Months Ended   Twelve Months Ended
        Dec. 31, 2018   Sep. 30, 2018   Dec. 31, 2017   Dec. 31, 2018   Dec. 31, 2017
                         
Interest Income                    
  Loans, including fees   $ 27,580   $ 25,933     $ 22,467   $ 101,243     $ 84,590  
  Securities     1,045     929       808     3,691       2,965  
  Federal funds sold and other     897     541       191     2,039       833  
                         
    Total Interest Income     29,522     27,403       23,466     106,973       88,388  
                         
Interest Expense                    
  Deposits     6,594     5,625       3,802     20,972       13,691  
  Borrowed funds     304     471       279     1,304       1,001  
  Subordinated debt     466     463       462     1,855       1,841  
                         
    Total Interest Expense     7,364     6,559       4,543     24,131       16,533  
                         
Net Interest Income     22,158     20,844       18,923     82,842       71,855  
Provision for Loan Losses     1,338     645       651     4,089       3,159  
Net interest income after provision for loan losses     20,820     20,199       18,272     78,753       68,696  
Non-interest income                    
  Service charges on deposits     328     254       219     1,071       921  
  Other non-interest income     244     136       239     962       967  
  Disposal of premises and equipment     -     (26 )     -     (26 )     (2 )
  Earnings on bank owned life insurance     60     61       60     238       242  
                         
    Total Non-interest income     632     425       518     2,245       2,128  
Non-Interest Expense                    
  Salaries and employee benefits     7,947     7,265       6,601     29,120       26,499  
  Occupancy and equipment     1,007     988       1,090     3,927       4,065  
  Legal and professional fees     176     388       331     1,257       1,041  
  Advertising     322     430       307     1,200       765  
  Data processing     627     657       585     2,515       2,397  
  FDIC premiums     118     330       368     1,147       1,544  
  Merger and acquisitions costs     -     -       25     -       584  
  Core deposit intangible amortization     177     178       177     710       710  
  Other     1,161     937       807     4,070       3,370  
                         
    Total Non-interest expense     11,535     11,173       10,291     43,946       40,975  
Income before income taxes     9,917     9,451       8,499     37,052       29,849  
Income Tax Expense     2,705     2,445       5,737     9,425       13,578  
Net Income   $ 7,212   $ 7,006     $ 2,762   $ 27,627     $ 16,271  
                         
Basic earnings per common share   $ 0.61   $ 0.68     $ 0.28   $ 2.62     $ 1.67  
Diluted earnings per common share   $ 0.59   $ 0.65     $ 0.27   $ 2.52     $ 1.59  
                         

 

Revere Bank
Average Balance Sheets, Interest and Rate
(dollars in thousands)
(Unaudited)
                         
    Three Months Ended December 31, 2018   Three Months Ended December 31, 2017
    Average
Balance
(1)
  Interest
Income-
Expense
  Average
Yields/ 
Rates
  Average
Balance
(1)
  Interest
Income-
Expense
  Average
Yields/ 
Rates
Assets                        
Loans, net (2)   $ 2,026,586   $ 27,580   5.40 %   $ 1,788,400   $ 22,467   4.98 %
Securities (3)     175,728     1,045   2.36 %     164,616     808   1.95 %
Federal funds sold and other (4)     139,202     897   2.56 %     45,035     191   1.68 %
Total interest-earnings assets     2,341,516     29,522   5.00 %     1,998,051     23,466   4.66 %
Less: Allowance for loan losses     17,845             14,808        
Other assets     71,751             108,837        
Total Assets   $ 2,395,422           $ 2,092,080        
                         
Liabilities & Stockholders' Equity                        
Interest-bearing deposits   $ 1,653,913     6,594   1.58 %   $ 1,441,802     3,802   1.05 %
Federal Home Loan Bank advances     69,587     304   1.73 %     86,700     279   1.28 %
Subordinated debt     30,699     466   6.02 %     30,594     462   5.99 %
Other borrowed funds     -     -   0.00 %     -     -   0.00 %
Total interest-bearing liabilities     1,754,199     7,364   1.67 %     1,559,096     4,543   1.16 %
Non-interest-bearing demand deposits     372,326             335,913        
Other liabilities     7,652             7,436        
Total Liabilities     2,134,177             1,902,445        
Stockholders' Equity     261,245             189,635        
Total Liabilities & Stockholders' Equity   $ 2,395,422           $ 2,092,080        
                         
Net interest income and margin (5) (6)       $ 22,158   3.75 %       $ 18,923   3.76 %
                         
    Three Months Ended September 30, 2018    
    Average
Balance
(1)
  Interest
Income-
Expense
  Average
Yields/ 
Rates
           
Assets                        
Loans, net (2)   $ 1,969,777   $ 25,933   5.22 %            
Securities (3)     166,094     929   2.22 %            
Federal funds sold and other (4)     106,801     541   2.01 %            
Total interest-earnings assets     2,242,672     27,403   4.85 %            
Less: Allowance for loan losses     17,180                    
Other assets     70,342                    
Total Assets   $ 2,295,834                    
                         
Liabilities & Stockholders' Equity                        
Interest-bearing deposits   $ 1,589,091     5,625   1.40 %            
Federal Home Loan Bank Advances     100,253     471   1.86 %            
Subordinated debt     30,673     463   5.99 %            
Other borrowed funds     -     -   0.00 %            
Total interest-bearing liabilities     1,720,017     6,559   1.51 %            
Non-interest-bearing demand deposits     355,627                    
Other liabilities     6,359                    
Total Liabilities     2,082,003                    
Stockholders' Equity     213,831                    
Total Liabilities & Stockholders' Equity   $ 2,295,834                    
                         
Net interest income and margin (5) (6)       $ 20,844   3.69 %            
                         
(1) Average balances are computed on a daily basis.
(2) Loans are presented net of average non-accrual loans for the period and unearned revenue.
(3) Includes securities available-for-sale.
(4) Includes federal funds sold, FHLB stock and interest-bearing deposits at other banks.
(5) Total interest income less total interest expense.
(6) Net interest margin is net interest income, expressed as a percentage of average interest-earning assets.
                         

 

Revere Bank
Average Balance Sheets, Interest and Rate
(dollars in thousands)
(Unaudited)
                         
    Twelve Months Ended December 31, 2018   Twelve Months Ended December 31, 2017
    Average
Balance
(1)
  Interest
Income-
Expense
  Average
Yields/ 
Rates
  Average
Balance
(1)
  Interest
Income-
Expense
  Average
Yields/ 
Rates
Assets                        
Loans, net (2)   $ 1,938,864   $ 101,243   5.22 %   $ 1,698,458   $ 84,590   4.98 %
Securities (3)     167,162     3,691   2.21 %     155,955     2,965   1.90 %
Federal funds sold and other (4)     92,532     2,039   2.20 %     58,594     833   1.42 %
Total interest-earning assets     2,198,558     106,973   4.87 %     1,913,007     88,388   4.62 %
Less: Allowance for loan losses     16,598             13,660        
Other assets     75,861             106,933        
Total Assets   $ 2,257,821           $ 2,006,280        
                         
Liabilities & Stockholders' Equity                        
Interest-bearing deposits   $ 1,569,552     20,972   1.34 %   $ 1,389,169     13,691   0.99 %
Federal Home Loan Bank advances     80,652     1,304   1.62 %     86,927     1,001   1.15 %
Subordinated debt     30,660     1,855   6.05 %     30,557     1,841   6.02 %
Other borrowed funds     -     -   0.00 %     1     -   1.30 %
Total interest-bearing liabilities     1,680,864     24,131   1.44 %     1,506,654     16,533   1.10 %
Non-interest-bearing demand deposits     352,485             312,239        
Other liabilities     7,413             6,804        
Total Liabilities     2,040,762             1,825,697        
Stockholders' Equity     217,059             180,583        
Total Liabilities & Stockholders' Equity   $ 2,257,821           $ 2,006,280        
                         
Net interest income and margin (5) (6)       $ 82,842   3.77 %       $ 71,855   3.76 %
                         
(1) Average balances are computed on a daily basis.
(2) Loans are presented net of average non-accrual loans for the period and unearned revenue.
(3) Includes securities available-for-sale.
(4) Includes federal funds sold, FHLB stock and interest-bearing deposits at other banks.
(5) Total interest income less total interest expense.
(6) Net interest margin is net interest income, expressed as a percentage of average interest-earning assets.

 

Revere Bank
Financial Highlights
(dollars in thousands, except share data)
(Unaudited)
 
    At or For the Three Months Ended   At or For the Twelve Months Ended
    12/31/2018   9/30/2018   12/31/2017   12/31/2018   12/31/2017
Per share Data and Shares Outstanding                    
Earnings per share - basic   $ 0.61     $ 0.68     $ 0.28     $ 2.62     $ 1.67  
Earnings per share - diluted   $ 0.59     $ 0.65     $ 0.27     $ 2.52     $ 1.59  
Tangible book value per share (1)   $ 19.84     $ 19.09     $ 15.94     $ 19.84     $ 15.94  
Weighted-average common shares - basic     11,808,265       10,329,900       9,830,501       10,529,804       9,736,916  
Weighted-average common shares - diluted     12,162,327       10,705,221       10,353,288       10,943,945       10,235,304  
Common shares outstanding at end of period     11,817,361       11,803,007       9,854,488       11,817,361       9,854,488  
                     
Performance Ratios                    
Return on average assets (annualized)     1.19 %     1.21 %     0.52 %     1.22 %     0.81 %
Return on average equity (annualized)     10.95 %     13.00 %     5.78 %     12.73 %     9.01 %
Yield on interest-earning assets (annualized)     5.00 %     4.85 %     4.66 %     4.87 %     4.62 %
Cost of interest-bearing liabilities (annualized)     1.67 %     1.51 %     1.16 %     1.44 %     1.10 %
Net interest margin (annualized)     3.75 %     3.69 %     3.76 %     3.77 %     3.76 %
Efficiency ratio (2)     50.61 %     52.53 %     52.93 %     51.65 %     55.38 %
                     
Asset Quality                    
Loans 30-89 days past due and accruing interest   $ 793     $ 1,177     $ 575     $ 793     $ 575  
Loans 30-89 days past due and accruing interest to total assets     0.03 %     0.05 %     0.03 %     0.03 %     0.03 %
Non-accrual loans   $ 2,025     $ 1,809     $ 2,206     $ 2,025     $ 2,206  
Other real estate owned   $ -     $ -     $ -     $ -     $ -  
Non-performing assets (3)   $ 2,025     $ 1,809     $ 2,206     $ 2,025     $ 2,206  
Non-performing assets to total assets (3)     0.08 %     0.08 %     0.11 %     0.08 %     0.11 %
Allowance for loan losses to total loans     0.90 %     0.88 %     0.82 %     0.90 %     0.82 %
Allowance for loan losses to non-performing loans     9.2       9.7       6.7       9.2       6.7  
Net loan charge-offs (recoveries)   $ 147     $ -     $ 265     $ 204     $ 550  
                     
Regulatory Capital Ratios                    
Total risk-based capital ratio     13.77 %     13.85 %     11.21 %     13.77 %     11.21 %
Tier 1 risk-based capital ratio     11.40 %     11.45 %     8.73 %     11.40 %     8.73 %
Tier 1 leverage ratio     10.03 %     10.11 %     7.75 %     10.03 %     7.75 %
Common equity tier 1 ratio     11.40 %     11.45 %     8.73 %     11.40 %     8.73 %
Tangible stockholders' equity to tangible assets (1)     9.67 %     9.85 %     7.60 %     9.67 %     7.60 %
                     
Other Information                    
Number of full time employees     226       229       205       226       205  
# Full service branch offices     11       11       11       11       11  
                     
(1)  Tangible common equity, tangible assets, tangible common equity to tangible assets and tangible book value per common share are non-GAAP financial measures. Tangible common equity is computed as total stockholders’ equity excluding intangible assets and goodwill. Tangible assets is computed as total assets excluding intangible assets and goodwill. Tangible common equity to tangible assets is the ratio of tangible common equity to tangible assets.  Tangible book value per common share is computed by dividing the total tangible common equity by the common shares issued and outstanding. The following tables provide a reconciliation of total stockholders’ to tangible common equity and a reconciliation of total assets to tangible assets.
    12/31/2018   9/30/2018   12/31/2017        
                     
Total stockholders' equity - GAAP   $ 264,891     $ 255,905     $ 188,277          
Less:                    
Goodwill     26,815       26,815       26,815          
Core deposits intangible     3,627       3,804       4,337          
                     
Tangible stockholders' equity (non-GAAP)   $ 234,449     $ 225,286     $ 157,125          
                     
Total assets - GAAP     2,455,211       2,317,700       2,098,845          
Less:                    
Goodwill     26,815       26,815       26,815          
Core deposits intangible     3,627       3,804       4,337          
                     
Total tangible assets (non-GAAP)   $ 2,424,769     $ 2,287,081     $ 2,067,693          
                     
Tangible common equity to total tangible assets ratio (non-GAAP)     9.67 %     9.85 %     7.60 %        
                     
Common shares outstanding     11,817,361       11,803,007       9,854,488          
                     
Tangible book value per share (non-GAAP)   $ 19.84     $ 19.09     $ 15.94          
(2) Efficiency ratio is non-interest expense divided by the sum of net interest income and non-interest income.
(3) Non-performing assets consist of non-accrual loans, loans 90 days or more past due and still accruing interest, and other real estate owned.
                     

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