Strong Q1 Growth Sets Pace for 2022
05/26/22
The first quarter of 2022 set the pace for growth and earnings for the year. Total assets at March 31, 2022 were $249.2 million, finishing the quarter just short of $250 million. The Bank is positioned to achieve $250 million in total assets early in the second quarter, a significant milestone for the Bank.
Total assets of $249.2 million represent an 8% increase since December 31, 2021 and was the result of significant deposit growth during the quarter. Total deposits at March 31, 2022 were $223.8 million, an increase of $18.3 million or 9% since year-end. Deposit growth was generated through many avenues including deepening of existing customer relationships and new business earned through increased marketing efforts, our online presence and a strong referral network.
Loans, on the other hand, saw a slight contraction in the first quarter of 2022 ending at $132.9 million, a decrease of $2.5 million or 2% from December 31, 2021. Of the $2.5 million decrease, $1.0 million was attributed to forgiveness received during the quarter on Paycheck Protection Program (“PPP”) loans and the remaining $1.5 million was related to portfolio loans.
After our record loan growth of $14 million late in the fourth quarter of 2021, we had a natural lull in loan production to begin the year. We also experienced some significant loan payoffs as our business owners took advantage of record valuations to sell their business assets. The Bank is positioned to overcome this first quarter contraction with a strong loan pipeline heading into the second quarter.
Earnings were $450,000, or $0.25 per share, for the quarter ended March 31, 2022 compared to $557,000, or $0.31 per share, for the comparative quarter in 2021. Significant to note is the contribution of PPP in each of these quarters. Current quarter Bank earnings of $0.25 per share were comprised of $0.22 per share attributable to core operations and $0.03 per share due to impacts from PPP whereas prior quarter Bank earnings of $0.31 per share were comprised of $0.17 per share attributable to core operations and $0.14 per share due to impacts from PPP.
The Bank remains Well Capitalized with a 10.36% leverage capital ratio and maintains its Bauer five-star rating.