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BayFirst Financial Corp. Reports Earnings of $1.28 Million, or $0.26 Per Diluted Share, in 3Q21; Results Highlighted by Strong Loan Production and Book Value per Share Increasing 46% to $21.30 YOY
المصدر: Nasdaq GlobeNewswire / 28 أكتوبر 2021 08:00:02 America/New_York
ST. PETERSBURG, Fla., Oct. 28, 2021 (GLOBE NEWSWIRE) -- BayFirst Financial Corp. (f/k/a First Home Bancorp, Inc.) (OTCQX: FHBI) (“BayFirst” or the “Company”), parent company of First Home Bank (“First Home” or the “Bank”) reported earnings for the third quarter of 2021 of $1.28 million, or $0.26 per diluted common share, compared to $13.02 million, or $2.98 per diluted common share, in the second quarter of 2021, and $5.25 million, or $1.37 per diluted common share, in the third quarter of 2020. The variability in financial metrics for the third quarter of 2021 compared to prior periods is a direct reflection of the Bank’s participation in the SBA’s Paycheck Protection Program (PPP) over the course of the last 18 months. Compared to the previous quarter, third quarter of 2021 net income declined by $4.58 million from lower recognition of PPP origination fee income and $13.80 million due to recognition of gains on PPP loan sales in the previous quarter. These line items were partially offset by a negative provision for loan losses of $3.00 million during the quarter and a decrease in noninterest expense of $2.44 million. Third quarter’s earnings increased tangible book value to $21.30 per common share, from $14.57 in the third quarter a year ago. All per share data has been adjusted to reflect the 3-for-2 stock split effective May 10, 2021.
Net income for the first nine months of 2021 more than tripled to $21.81 million, compared to $7.10 million in the first nine months of 2020. Earnings per share increased to $5.13 per diluted share in the first nine months of 2021, compared to $1.78 per diluted share in the same period one year earlier. Increases in PPP origination fees earned contributed to the increase in net income during the first nine months of 2021 compared to the same period in 2020.
“The third quarter represented a transition for the Company, as we continue to wind down from the extraordinary events of the pandemic, and shift our focus to more normalized banking activities,” stated Anthony N. Leo, Chief Executive Officer. “We booked a credit to our provision for loan losses during the quarter as we move towards a more moderate allowance for loan losses from the higher allowance levels held during the early days of the pandemic. We utilized our strong earnings year to date to focus on improving our balance sheet loan mix by building up a significant amount of SBA guaranteed loan balances to complement our SBA nonguaranteed loan balances. While we will return to selling guaranteed portions in future quarters, similar to how we conducted business before the pandemic, we anticipate keeping the mix on our balance sheet more evenly distributed in the future.”
“The highly successful PPP lending program sponsored by the SBA has helped thousands of businesses in the Tampa Bay region, which is our home market. We are proud to have been active participants in PPP, and our lending team clearly responded to the needs of businesses in our marketplace and throughout the country, with over $1.2 billion in PPP loans originated over the course of the program. While the significant contributions to net income and loan portfolio growth are unlikely to be repeated in future quarters, the opportunities to serve new clients and deepen relationships with existing customers positions the Company well for the future. Even without the PPP loans contribution, we had another strong quarter with residential, commercial, SBA and consumer lending, due to the hard work and continued efforts of our lending team bringing new customers into the Bank. The success of our lending services is fueling profitability and providing new market opportunities, and is reflected in our balance sheet growth with total deposits increasing 32.32% in the past year, while total loans held for investment, ex. PPP, grew by 29.28% in that period.”
Third Quarter 2021 Highlights:
- The Residential Mortgage Division originated $506.67 million in loans during the third quarter of 2021 compared to $522.10 million during the second quarter of 2021 and $598.39 million of loans produced during the third quarter of 2020.
- Loans held for investment, excluding PPP loans, increased by 7.56% or $35.18 million during the third quarter of 2021 and by 29.28% or $113.40 million over the past year to $500.65 million, due to increases in both conventional community bank loans and SBA loans.
- During the prior quarter, BayFirst sold $326.3 million in PPP loans originated in 2021 to a third party. No PPP loans were sold during the third quarter of 2021. However, the Company sold $5.03 million in nonguaranteed SBA loans during the quarter at a net 9% discount, representing the first time since Q2 2019 that the Company successfully sold nonguaranteed loans. The Company expects to resume guaranteed SBA loan sales depending on market conditions, and it will continue efforts to shed nonguaranteed loans if the pricing of such loans remains favorable.
- Deposits increased by 6.75% or $42.71 million during the third quarter of 2021, and by 32.32% or $164.89 million during the past year, to $675.03 million at September 30, 2021, with the majority of the 12-month increase coming from increases in transaction accounts and savings deposits, partially offset by declines in time deposit balances.
- Tangible book value per common share increased to $21.30 at the end of the third quarter from $21.14 at the end of the preceding quarter and $14.57 a year ago.
- The Company paid a quarterly cash dividend of seven cents per common share, on September 15, 2021, to shareholders of record as of August 15, 2021. The cash dividend marked the 21st consecutive quarter in which BayFirst paid a cash dividend.
Results of Operations
Net Income and Performance Ratios
Net income was $1.28 million for the third quarter of 2021 compared to $13.02 million in the second quarter of 2021, and $5.25 million in the third quarter of 2020. The decrease in net income for the third quarter of 2021 from the preceding quarter was primarily due to a $13.80 million gain on sale of PPP loans sold during the preceding quarter. In the first nine months of 2021, net income increased substantially to $21.81 million, from $7.10 million in the first nine months of 2020, reflecting higher PPP origination fee income and the gain on sale of PPP loans sold in the first nine months of 2021.
BayFirst’s return on average common equity and return on average assets returned to more realistic levels in the third quarter as the contributions from the PPP loan program tapered off. Return on average common equity was 5.12% for the third quarter of 2021, and return on average assets was 0.47%. In the first nine months of 2021, return on average common equity was 40.26% and return on average assets was 2.05%.
Net Interest Income and Net Interest Margin
Net interest income was $8.02 million in the third quarter of 2021, a decrease of $4.89 million or 37.88% from $12.90 million in the second quarter of 2021, and a decrease of $2.07 million or 20.51% from the third quarter of 2020. The decrease during the third quarter of 2021 as compared to the prior quarter and the year ago quarter was mainly due to the decrease in net PPP origination fee income. In the first nine months of 2021, net interest income increased $11.67 million, or 53.34%, to $33.55 million, compared to $21.88 million in the same period a year ago.
Net interest margin was 3.04% for the third quarter of 2021 compared to 3.46% for the second quarter of 2021 and 2.88% for the third quarter of 2020. The decrease in net interest margin in the third quarter of 2021 as compared to the prior quarter was largely due to the decrease in recognition of PPP origination fee income. In the first nine months of 2021, net interest margin increased 49 basis points to 3.26% from 2.77% in the first nine months of 2020.
Noninterest Income
Noninterest income was $21.99 million for the third quarter of 2021, a decrease of $16.22 million or 42.45% from $38.21 million in the second quarter of 2021, and a decrease of $10.20 million or 31.68% from $32.19 million in the third quarter of 2020. The decrease in the third quarter of 2021 as compared to the prior quarter and the year ago quarter was primarily the result of a decrease in residential loan fee income and gain on loan sale income as a result of the sale during the prior quarter of $326.3 million in PPP loans. In the first nine months of the year, noninterest income increased $27.05 million, or 40.78%, to $93.36 million, compared to $66.32 million in the first nine months of 2020. The increase over the same period in the prior year was due to higher residential loan fee income, and higher gain on sale of SBA loans during the current year.
Noninterest Expense
Noninterest expense was $31.23 million in the third quarter of 2021, which was a $2.44 million or 7.24% decrease from $33.67 million in the second quarter of 2021 and an increase of $3.02 million or 10.71% compared to the third quarter of 2020. The increase in the third quarter of 2021 as compared to the third quarter of 2020 was primarily due to increases in salaries and benefits as the Company built infrastructure in various functions to support the Company’s strategic initiatives and planned growth strategy. Year-to-date, noninterest expense was $98.62 million, compared to $68.00 million in the same period one year earlier, with the majority of the increase related to the above-mentioned items.
Balance Sheet
Assets
Total assets decreased by $254.49 million or 21.24% during the third quarter of 2021 to $943.74 million, mainly due to a decrease in PPP loan balances of $274.08 million due to the SBA’s forgiveness of PPP loans.
Loans
Loans held for investment, excluding PPP loans, increased by $35.18 million or 7.56% during the third quarter of 2021 and by $113.40 million or 29.29% over the past year to $500.65 million due to increases in both community bank loans and SBA loans. PPP loans, net of deferred origination fees, decreased by $274.08 million or 63.78% in the third quarter of 2021 to $155.65 million due to PPP forgiveness payments. Deferred PPP origination fees, net, which will be recognized over the remaining average life of the PPP loans totaled $1.11 million as of September 30, 2021.
Deposits
Deposits increased by $42.71 million or 6.75% during the third quarter of 2021 and increased by $164.89 million or 32.32% during the past year, ending the quarter at $675.03 million, with the majority of the quarterly and 12-month increase coming from increases in savings and money market accounts and transaction accounts, partially offset by declines in time deposit balances.
Asset Quality
BayFirst recorded a credit to the provision for loan losses of $3.00 million during the third quarter of 2021. This compared to no provision for loan losses in the second quarter of 2021, and a $7.00 million provision for loan losses in the third quarter of 2020. In the first nine months of 2021, BayFirst recorded a $1.00 million credit to the provision for loan losses, compared to a $11.90 million provision for loan losses in the first nine months of 2020. Throughout 2020, the qualitative factors in the allowance for loan loss calculation were increased due to the economic uncertainties caused by the COVID-19 pandemic which resulted in significant provision expense each quarter of 2020. Asset quality remained stable in the third quarter of 2021 even as much of the government support provided previously for the Company’s SBA loans ended during the third quarter. As a result, and combined with an improved economic outlook, the Company booked a credit to the provision for loan losses during the third quarter of 2021, as it moves towards a more moderate allowance for loan losses from the higher allowance levels held during the early days of the pandemic.
Over the past five years, the Company’s loan losses have been incurred primarily in its SBA unguaranteed loan portfolio, particularly loans originated under the SBA 7(a) Small Loan Program. The Small Loan Program represents loans of $350,000 or less and carry an SBA guaranty of 75% to 85% of the loan, depending on the original principal balance. The default rate on loans originated in the SBA 7(a) Small Loan Program has been higher than the Bank’s other SBA 7(a) loans, conventional commercial loans, or residential mortgage loans.
Net charge-offs for the third quarter of 2021 were $1.11 million, a $113,000 decrease from $1.22 million for the second quarter of 2021 and a $141,000 increase compared to $967,000 of net charge-offs in the third quarter of 2020. Annualized net charge-offs as a percentage of average loans, excluding PPP loans, were 0.79% for the third quarter of 2021, down from 0.83% in the second quarter of 2021 and 0.84% in the third quarter of 2020. Non-performing assets, excluding government guaranteed loans, to total assets was 0.40% as of September 30, 2021, compared to 0.30% as of June 30, 2021 and 0.27% as of September 30, 2020.
The ratio of the allowance for loan losses to total loans, excluding government guaranteed loans, residential loans held for sale, and loans carried at fair value, was 5.42% at September 30, 2021, 6.83% as of June 30, 2021, and 6.86% as of September 30, 2020.
In addition to the above metrics, the Company also began to experience past due PPP loans during the third quarter of 2021 as certain PPP loan customers did not apply for forgiveness nor make required payments. As such, as of September 30, 2021, the Company reported $22.28 million of PPP loans past due between 30 to 89 days, representing approximately 2.5% of PPP loans originated during 2020. Although customers may default on their PPP loans, PPP loans are 100% guaranteed by the SBA and the Company expects to receive all principal and accrued interest related to these loans upon repurchase of the loan by the SBA. Under SBA program rules, the Company is required to wait until a PPP loan is 60 days past due before submitting the loan to the SBA for purposes of honoring the SBA guarantee. Based on the timing of the PPP loan program and the requirements of the SBA liquidation process, the Company expects past due PPP loans to skew past due ratios over at least the next two quarters.
Capital Strength
The Bank’s Tier 1 leverage ratio increased to 12.64% as of September 30, 2021, from 12.06% as of June 30, 2021, and 10.85% at September 30, 2020. The Tier 1 leverage ratio increased due to strong earnings and additional capital raises during the past year with the majority of capital raised being contributed to the Bank. The CET 1 and Tier 1 capital ratio to risk-weighted assets remained relatively stable at 21.21% as of September 30, 2021 compared to 21.27% as of June 30, 2021, and showed a substantial increase over 15.33% as of September 30, 2020. The total capital to risk-weighted assets ratio was 22.50% as of September 30, 2021, a slight decrease from 22.57% as of June 30, 2021, and a substantial increase from 16.75% as of September 30, 2020.
During the third quarter of 2021, no shares of Series B Preferred Stock were issued, 270 shares of Series B Preferred Stock were converted to common shares, and $783,000 of common stock was issued under private placement and employee stock programs.
Recent Events
On May 3, 2021, the Company announced the name change from First Home Bancorp, Inc. to BayFirst Financial Corp. The name of the Company’s banking subsidiary, First Home Bank, and the ticker symbol “FHBI” remained unchanged.
On May 5, 2021, the Company announced a 3 for 2 common stock split, which took effect on May 10, 2021. Pursuant to the split, common shareholders received three common shares of the Company’s common stock for every two shares owned as of the record date.
On May 11, 2021, the Company filed a registration statement and on August 31, 2021 and October 1, 2021, the Company filed S-1 Amendments with the SEC.
About BayFirst Financial Corp.
BayFirst Financial Corp. (f/k/a First Home Bancorp, Inc.) is a registered bank holding company which commenced operations on September 1, 2000. Its primary source of income is from its wholly owned subsidiary, First Home Bank, which commenced business operations on February 12, 1999. First Home Bank is a Federal Reserve member and a state-chartered banking institution. The Bank operates six full-service office locations, 24 mortgage loan production offices, and is in the top 45 by dollar volume and top 20 by number of units, of nation-wide SBA lenders.
BayFirst Financial Corp., through the bank, offers a broad range of commercial and consumer banking services including various types of deposit accounts and loans for businesses and individuals. As of September 30, 2021, BayFirst Financial Corp. had $943.74 million in total assets.
Forward Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “is confident that” and similar expressions are intended to identify these forward-looking statements. These forward-looking statements involve risk and uncertainty and a variety of factors could cause our actual results and experience to differ materially from the anticipated results or other expectations expressed in these forward-looking statements. BayFirst Financial Corp. does not have a policy of updating or revising forward-looking statements except as otherwise required by law, and silence by management over time should not be construed to mean that actual events are occurring as estimated in such forward-looking statements.
Contacts: Anthony N. Leo Jeffrey M. Hunt Chief Executive Officer Chief Strategy Officer 727.399.5678 727.399.5687 BayFirst Financial Corp. Consolidated Statements of Income (Unaudited) Dollars in Thousands For the Quarter Ended Year-to-Date 9/30/2021 6/30/2021 9/30/2020 9/30/2021 9/30/2020 Interest income: Loans, other than PPP $ 7,009 $ 6,752 $ 5,980 $ 20,361 $ 17,631 PPP loan interest income 692 1,859 2,268 4,751 3,441 PPP origination fee income 1,656 6,235 4,302 13,902 8,175 Interest-bearing deposits in banks and other 188 151 72 420 571 Total interest income 9,545 14,997 12,622 39,434 29,818 Interest expense: Deposits 1,152 1,194 1,540 3,666 6,111 PPPLF borrowings 278 654 793 1,699 1,185 Other 99 245 205 519 642 Total interest expense 1,529 2,093 2,538 5,884 7,938 - - Net interest income 8,016 12,904 10,084 33,550 21,880 - Provision for loan losses (3,000 ) - 7,000 (1,000 ) 11,900 - - Net interest income after provision for loan losses 11,016 12,904 3,084 34,550 9,980 Noninterest income: Service charges and fees 261 259 222 730 664 Bank Owned Life Insurance income 82 84 81 250 99 Residential loan fee income 21,323 23,352 31,226 76,704 61,888 Gain (loss) on sale of SBA loans (438 ) 13,798 - 13,360 1,202 SBA loan servicing right gain 100 - - 100 530 Mortgage loan servicing right gain 42 197 - 238 - SBA and mortgage servicing income, net 417 325 565 1,446 1,753 Other noninterest income 205 197 98 535 182 Total noninterest income 21,992 38,212 32,192 93,363 66,318 Noninterest Expense: Salaries and benefits 12,851 12,948 8,876 38,966 24,497 Commissions 7,490 7,640 9,726 25,450 19,411 Bonus and incentives 1,047 1,578 2,193 4,177 4,476 Occupancy and equipment expense 1,278 1,297 1,182 3,907 3,314 Data processing 1,347 2,593 1,163 5,209 3,086 Professional services 1,428 843 878 3,195 2,343 Mortgage lead generation 595 598 379 1,957 1,242 Marketing and business development 1,323 1,280 337 3,482 1,008 Mortgage banking expense 1,440 1,572 1,620 4,707 3,645 Regulatory assessments 138 100 145 340 418 ATM and interchange expense 71 93 43 241 194 Telecommunications expense 156 137 135 432 427 Employee recruiting and development 809 1,008 245 2,431 1,135 Loan origination and collection 683 1,105 908 2,284 1,771 Other expenses 573 876 378 1,840 1,028 Total noninterest expense 31,229 33,668 28,208 98,618 67,995 - - Income before taxes 1,779 17,448 7,068 29,295 8,303 Income tax expense 499 4,432 1,815 7,488 1,206 Net income $ 1,280 $ 13,016 $ 5,253 $ 21,807 $ 7,097 Preferred dividends 230 235 202 797 557 Net income available to common shareholders $ 1,050 $ 12,781 $ 5,051 $ 21,010 $ 6,540 BAYFIRST FINANCIAL CORP. CONSOLIDATED BALANCE SHEETS (Unaudited) Dollars in Thousands Assets 9/30/2021 6/30/2021 9/30/2020 Cash and due from banks $ 2,715 $ 2,896 $ 2,707 Interest-bearing deposits in banks 104,382 102,441 31,770 Cash and cash equivalents 107,097 105,337 34,477 Certificates of deposit 2,381 2,381 2,381 Securities HTM and restricted equity securities 2,830 2,826 2,751 Securities AFS 32,535 22,674 - Residential loans held for sale 91,243 126,479 149,407 PPP loans, net of deferred fees and costs 155,646 429,724 879,509 Community bank loans 180,703 169,449 138,053 SBA loans, excluding PPP 319,945 296,021 249,191 Total loans held for investment 656,294 895,194 1,266,753 Allowance for loan losses (16,616 ) (20,797 ) (18,913 ) Loans, net 639,678 874,397 1,247,840 Accrued interest receivable 4,292 7,039 5,262 Premises and equipment, net 24,622 21,076 16,881 Loan servicing rights 6,155 6,805 9,169 Bank owned life insurance 12,434 12,351 12,099 Other assets 20,476 16,864 21,249 Total assets $ 943,743 $ 1,198,229 $ 1,501,516 Liabilities Noninterest-bearing transaction accounts $ 87,625 $ 81,150 $ 70,115 Interest-bearing transaction accounts 157,304 143,046 112,902 Savings and money market deposits 377,452 355,045 247,708 Time deposits 52,653 53,081 79,417 Total deposits 675,034 632,322 510,142 Federal Home Loan Bank advances - - 10,000 Subordinated debentures 5,983 5,982 6,943 Notes payable 3,413 3,527 3,868 PPP Liquidity Facility 144,601 443,906 889,770 Accrued expenses and other liabilities 20,414 19,679 18,639 Total liabilities 849,445 1,105,416 1,439,362 Stockholders' equity Preferred stock, Series A 6,161 6,161 7,661 Preferred stock, Series B 4,193 4,456 3,723 Common stock and additional paid-in capital 50,546 49,501 42,496 Accumulated other comprehensive income (loss), net of taxes (201 ) (122 ) - Deferred compensation - restricted stock (23 ) (29 ) (47 ) Retained earnings 33,622 32,846 8,321 Total stockholders' equity 94,298 92,813 62,154 Total liabilities and stockholders' equity $ 943,743 $ 1,198,229 $ 1,501,516 BayFirst Financial Corp. Selected Financial Data (Unaudited) Dollars in Thousands, Except Share Data At or for the Quarter Ended At or for the Nine Months Ended Selected income statement data: 9/30/2021 6/30/2021 9/30/2020 9/30/2021 9/30/2020 Interest income $ 9,545 $ 14,997 $ 12,622 $ 39,434 $ 29,818 Interest expense 1,529 2,093 2,538 5,884 7,938 Net interest income 8,016 12,904 10,084 33,550 21,880 Provision for loan losses (3,000 ) - 7,000 (1,000 ) 11,900 Noninterest income 21,992 38,212 32,192 93,363 66,318 Noninterest expense 31,229 33,668 28,208 98,618 67,995 Income tax expense 499 4,432 1,815 7,488 1,206 Net income $ 1,280 $ 13,016 $ 5,253 $ 21,807 $ 7,097 Preferred dividends 230 235 202 797 557 Net income available to common shareholders $ 1,050 $ 12,781 $ 5,051 $ 21,010 $ 6,540 Balance sheet data: Average loans $ 850,501 $ 1,275,082 $ 1,317,735 $ 1,196,120 $ 881,379 Average loans, excluding PPP loans $ 562,095 $ 585,753 $ 457,950 $ 582,352 $ 500,233 Average loans, excluding LHFS $ 755,689 $ 1,170,753 $ 1,226,808 $ 1,070,879 $ 804,909 Average assets $ 1,086,377 $ 1,541,287 $ 1,457,998 $ 1,419,264 $ 1,092,193 Average total equity $ 92,829 $ 80,700 $ 53,076 $ 82,245 $ 49,914 Average common equity $ 81,989 $ 68,525 $ 46,741 $ 69,574 $ 38,199 Total loans, period end $ 747,537 $ 1,021,673 $ 1,416,160 $ 747,537 $ 1,416,160 Total loans, excluding PPP $ 591,891 $ 591,949 $ 536,651 $ 591,891 $ 536,651 Total loans, excluding PPP and LHFS $ 500,648 $ 465,470 $ 387,243 $ 500,648 $ 387,243 Loans where the Fair Value Option (FVO) was elected $ 9,805 $ 10,070 $ 9,554 $ 9,805 $ 9,554 Total loans, excl guaranteed loans, LHFS, and FVO loans $ 306,724 $ 304,364 $ 275,786 $ 306,724 $ 275,786 ALLL, period end $ 16,616 $ 20,797 $ 18,913 $ 16,616 $ 18,913 Total assets, at period end $ 943,743 $ 1,198,229 $ 1,501,516 $ 943,743 $ 1,501,516 Share data: (*) Basic earnings per share $ 0.27 $ 3.34 $ 1.47 $ 5.60 $ 1.91 Diluted earnings per share $ 0.26 $ 2.98 $ 1.37 $ 5.13 $ 1.78 Tangible book value per common share (at period end) $ 21.30 $ 21.14 $ 14.57 $ 21.30 $ 14.57 Shares of common stock outstanding 3,919,977 3,867,414 3,455,190 3,919,977 3,455,190 Weighted average common shares outstanding: Basic 3,913,523 3,821,993 3,443,999 3,749,692 3,419,617 Diluted 4,406,339 4,315,022 3,706,242 4,169,266 3,681,859 Performance ratios: Return on average assets 0.47 % 3.38 % 1.44 % 2.05 % 0.87 % Return on average common equity 5.12 % 74.61 % 43.23 % 40.26 % 22.83 % Yield on average earning assets 3.62 % 4.03 % 3.55 % 3.83 % 3.77 % Cost of average interest bearing liabilities 0.68 % 0.61 % 0.72 % 0.63 % 1.10 % Net interest margin 3.04 % 3.46 % 2.88 % 3.26 % 2.77 % Asset quality ratios: Net charge-offs $ 1,108 $ 1,221 $ 967 $ 3,546 $ 3,729 Net charge-offs/avg loans excl PPP, annualized 0.79 % 0.83 % 0.84 % 0.81 % 0.99 % Non-performing loans (including gov't gtd loans), at period end $ 10,495 $ 9,884 $ 13,836 $ 10,495 $ 13,836 Non-performing assets (including gov't gtd loans), at period end $ 10,498 $ 9,884 $ 13,836 $ 10,498 $ 13,836 Non-performing loans (excluding gov't gtd loans), at period end $ 3,756 $ 3,576 $ 4,057 $ 3,756 $ 4,057 Non-performing assets (excluding gov't gtd loans), at period end $ 3,759 $ 3,576 $ 4,057 $ 3,759 $ 4,057 Non-performing loans (including gov't gtd loans)/total loans 1.40 % 0.97 % 0.98 % 1.40 % 0.98 % Non-performing assets (including gov't gtd loans)/total assets 1.11 % 0.82 % 0.92 % 1.11 % 0.92 % Non-performing loans (excluding gov't gtd loans)/total loans 0.50 % 0.35 % 0.29 % 0.50 % 0.29 % Non-performing assets (excluding gov't gtd loans)/total assets 0.40 % 0.30 % 0.27 % 0.40 % 0.27 % ALLL/Total loans 2.22 % 2.04 % 1.34 % 2.22 % 1.34 % ALLL/Total loans, excl PPP loans 2.81 % 3.51 % 3.52 % 2.81 % 3.52 % ALLL/Total loans, excl guaranteed loans, LHFS, and FVO loans 5.42 % 6.83 % 6.86 % 5.42 % 6.86 % Other company information: FTEs 651 671 545 651 545 Community banking center offices 6 6 6 6 6 Loan production offices 22 26 23 22 23 (*) Adjusted for the three-for-two stock split, effective May 10, 2021. 
