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Landmark Bancorp, Inc. Announces Third Quarter Earnings Per Share of $0.50 Declares Cash Dividend of $0.21 per Share and 5% Stock Dividend
المصدر: Nasdaq GlobeNewswire / 02 نوفمبر 2022 16:29:56 America/New_York
Manhattan, KS, Nov. 02, 2022 (GLOBE NEWSWIRE) -- Landmark Bancorp, Inc. (“Landmark”; Nasdaq: LARK) reported diluted earnings per share of $0.50 for the three months ended September 30, 2022, compared to $0.61 per share in the second quarter of 2022 and $0.90 per share in the same quarter last year. Net earnings for the third quarter of 2022 amounted to $2.5 million, compared to $3.0 million in the prior quarter and $4.5 million for the third quarter of 2021. For the three months ended September 30, 2022, the return on average assets was 0.76%, the return on average equity was 8.33%, and the efficiency ratio was 69.6%. The previously announced acquisition of Freedom Bancshares, Inc. was completed prior to the opening of business on October 1, 2022 and their financial information is not included in Landmark’s third quarter results.
For the first nine months of 2022, diluted earnings per share totaled $1.73 compared to $2.97 during the same period of 2021. Net earnings for the first nine months of 2022 amounted to $8.7 million, compared to $14.9 million in the first nine months of 2021. For the nine months ended September 30, 2022, the return on average assets was 0.89% and the return on average equity was 9.33%.
In making this announcement, Michael E. Scheopner, President and Chief Executive Officer of Landmark, said, “This quarter’s loan growth remained robust, and we experienced solid growth in net interest income over the prior quarter. Compared to the second quarter 2022, total gross loans increased by $41.4 million, or 24.5% on an annualized basis, as a result of greater demand for residential and commercial real estate loans and commercial and agricultural loans. Net interest income also grew by 24.7% on an annualized basis compared to the prior quarter due to higher loan and investment balances and higher rates, which were partially offset by higher deposit rates and borrowing costs. Our net interest margin increased to 3.21%. Non-interest income declined $1.9 million compared to the same period last year mostly the result of lower gains on sales of residential mortgage loans while fees and service charges increased 10.7%. We also recorded a $353,000 loss on sale of lower yielding investment securities that we had strategically sold this quarter. Non-interest expense totaled $9.5 million in the third quarter 2022 and was mostly flat with the third quarter last year and included $134,000 in costs associated with the acquisition of Freedom Bancshares, Inc. Total deposits declined slightly this quarter but have increased by $50.5 million, or 4.7% as compared to September 30, 2021.”
Mr. Scheopner continued, “Credit quality remains very strong and non-accrual loans and delinquencies continue to decline. Landmark recorded net loan recoveries of $43,000 in the third quarter of 2022 compared to net loan charge-offs of $42,000 in the prior quarter and $397,000 in the third quarter of 2021. Non-accrual loans totaled $4.8 million or 0.68% of gross loans at September 30, 2022 and have declined $5.0 million over the last twelve months. Also, the balance of loans past due 30 to 89 days remained low. The allowance for loan losses totaled $8.9 million at September 30, 2022, or 1.25% of period end loans and we recorded a provision for loan losses of $500,000 this quarter primarily due to the increased loan balances. Our equity to assets ratio totaled 7.78% while loans to deposits totaled 62.9%.”
Total assets at September 30, 2022 were $1.4 billion, total gross loans were $711.3 million and total deposits were $1.1 billion. On October 1, 2022, Landmark completed the acquisition Freedom Bancshares, Inc., a one-bank holding company with gross loans of $118.0 million and deposits of $150.4 million. Freedom Bank is located in Overland Park, Kansas and will expand Landmark’s presence in the Kansas City market.
Landmark’s Board of Directors declared a cash dividend of $0.21 per share, to be paid November 30, 2022, to common stockholders of record as of the close of business on November 16, 2022. The Board of Directors also declared a 5% stock dividend payable on December 16, 2022, to common stockholders of record on December 2, 2022. This is the 22nd consecutive year that the Board has declared a 5% stock dividend. During the quarter the Company purchased 20,706 shares of treasury stock.
Management will host a conference call to discuss the Company’s financial results at 10:00 a.m. (Central time) on Thursday, November 3, 2022. Investors may participate via telephone by dialing (844) 200-6205 and using access code 523774. A replay of the call will be available through December 3, 2022, by dialing (866) 813-9403 and using access code 414179.
SUMMARY OF THIRD QUARTER RESULTS
Net Interest Income
Net interest income amounted to $9.5 million for the three months ended September 30, 2022, compared to $9.6 million in the same period last year and $8.9 million in the second quarter of 2022. The decrease of $162,000, or 1.7%, from the third quarter of 2021 was primarily the result of a decrease in interest on loans of $436,000 or 5.2% due mainly to lower interest and fees earned on PPP loans which declined by $1.6 million from the third quarter 2021 and carried higher average rates. Net interest income, however, increased $553,000 from the second quarter 2022 due mainly to loan growth and higher yields on loans and investment securities. Average loan balances totaled $687.7 million in the third quarter of 2022 compared to $668.0 million in the third quarter of 2021 and $653.0 million in the second quarter of 2022. The average tax-equivalent yield on the loan portfolio was 4.63% in the third quarter of 2022 compared to 5.03% in the same quarter last year and 4.40% in the prior quarter. Interest costs on interest-bearing deposits totaled 0.39% in the third quarter of 2022, 0.13% in the third quarter of 2021 and 0.18% in the prior quarter. On a tax-equivalent basis, the net interest margin totaled 3.21% in the third quarter of 2022, compared to 3.05% in the prior quarter and 3.36% in the third quarter of 2021.
Non-Interest Income
Non-interest income totaled $3.5 million for the third quarter of 2022, a decrease of $1.9 million, or 35.4%, compared to the same period last year and $267,000, or 7.0%, from the previous quarter. The decrease in non-interest income during the third quarter of 2022 compared to the same period last year was primarily due to a decrease of $1.6 million in gains on sales of one-to-four family residential real estate loans as higher interest rates and low housing inventories reduced originations of these fixed rate loans which are normally sold. Higher mortgage rates however resulted in an increase in originations of adjustable-rate loans this quarter which are kept in the Company’s loan portfolio. Fees and service charges increased $243,000, or 10.7%, over the same period last year and increased $131,000 compared to the prior quarter mainly due to increased deposit-related income. A loss of $353,000 was recorded in the third quarter of 2022 on the sale of certain low yielding investment securities in our portfolio.
Non-Interest Expense
During the third quarter of 2022, non-interest expense totaled $9.5 million, a slight increase over the same period last year and $436,000, or 4.8% higher than in the prior quarter. Compared to the same quarter last year, higher costs for occupancy and equipment and acquisition costs were offset by lower compensation, data processing and intangible amortization expense. The increase in occupancy and equipment was related to building maintenance costs as well as increased utilities and other building expense. Compared to the prior quarter, non-interest expense increased primarily due to increased costs for occupancy and equipment and higher other non-interest expense, primarily increased costs for software and captive insurance losses.
Income Tax Expense
Landmark recorded income tax expense of $522,000 in the third quarter of 2022 compared to $1.1 million in the third quarter of 2021 and $639,000 in the second quarter of 2022. The effective tax rate decreased to 17.3% in the third quarter of 2022 compared to 19.8% in the third quarter of 2021 and 17.4% in the second quarter of 2022, primarily due to lower pretax earnings.
Balance Sheet Highlights
As of September 30, 2022, gross loans totaled $711.3 million, an increase of $41.4 million, or 24.5% annualized, since June 30, 2022. The growth in loans was primarily due to increases of $18.8 million in commercial real estate, $12.9 million in one-to-four family residential real estate, $7.9 million in agriculture and $6.7 million in commercial loans. Investment securities decreased $2.5 million, or 2.1% annualized, during the third quarter of 2022 primarily due to an increase in our unrealized losses as higher interest rates impacted the fair value of our portfolio. Gross unrealized net losses totaled $41.0 million at September 30, 2022 compared to $24.0 million at June 30, 2022. Deposits decreased $14.3 million to $1.1 billion at September 30, 2022 mainly due to lower balances of investments savings, interest checking and certificates of deposits. Other borrowings increased by $10.1 million primarily due to $10.0 million of debt issued in conjunction with the Freedom Bancshares, Inc. acquisition. At September 30, 2022, the loan to deposits ratio was 62.9% compared to 58.5% in the prior quarter and 61.6% in the same period last year.
Stockholders’ equity decreased to $105.5 million (book value of $21.21 per share) as of September 30, 2022, from $117.3 million (book value of $23.57 per share) as of June 30, 2022, due mainly to an increase in other comprehensive losses and the purchase of the Company’s common stock totaling $502,000. The increase in other comprehensive losses this quarter resulted from an increase in unrealized losses on the Company’s investment securities portfolio due to the increased interest rate environment this quarter. As a result of these items, the ratio of equity to total assets decreased to 7.78% on September 30, 2022, from 9.08% at June 30, 2022.
The allowance for loan losses totaled $8.9 million, or 1.25% of total gross loans (excluding PPP loans) on September 30, 2022, compared to $8.3 million, or 1.24% of total gross loans (excluding PPP loans) on June 30, 2022. No allowance for loan losses has been allocated to PPP loans because they are guaranteed by the SBA. Net loan recoveries totaled $43,000 in the third quarter of 2022, compared to net loan charge-offs of $397,000 during the same quarter last year and $42,000 during the second quarter of 2022. The ratio of annualized net loan charge-offs to total average loans was (0.02%) in the third quarter of 2022, 0.24% in the third quarter of last year and 0.03% in the prior quarter. A $500,000 provision for loan losses was recorded in the third quarter of 2022 primarily due to the growth in loans during the quarter. No provision for loan losses was made in either the same quarter last year or in the prior quarter.
During the third quarter of 2022, non-performing loans totaled $4.8 million, or 0.68% of gross loans, while loans 30-89 days delinquent totaled $657,000, or 0.09% of gross loans, as of September 30, 2022. Real estate owned totaled $1.3 million at September 30, 2022.
About Landmark
Landmark Bancorp, Inc., the holding company for Landmark National Bank, is listed on the Nasdaq Global Market under the symbol “LARK.” Headquartered in Manhattan, Kansas, Landmark National Bank is a community banking organization dedicated to providing quality financial and banking services. Landmark National Bank has 30 locations in 24 communities across Kansas: Manhattan (2), Auburn, Dodge City (2), Fort Scott (2), Garden City, Great Bend (2), Hoisington, Iola, Junction City, Kincaid, La Crosse, Lawrence (2), Lenexa, Louisburg, Mound City, Osage City, Osawatomie, Overland Park, Paola, Pittsburg, Prairie Village, Topeka (2), Wamego and Wellsville, Kansas. Visit www.banklandmark.com for more information.
Special Note Concerning Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of Landmark. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. Additionally, all statements in this press release, including forward-looking statements, speak only as of the date they are made, and Landmark undertakes no obligation to update any statement in light of new information or future events. A number of factors, many of which are beyond our ability to control or predict, could cause actual results to differ materially from those in our forward-looking statements. These factors include, among others, the following: (i) the effects of the COVID-19 pandemic, including its effects on the economic environment, our customers and operations, as well as changes to federal, state or local government laws, regulations or orders in connection with the pandemic; (ii) the strength of the local, national and international economies; (iii) changes in state and federal laws, regulations and governmental policies concerning banking, securities, consumer protection, insurance, monetary, trade and tax matters; (iv) changes in interest rates and prepayment rates of our assets; (v) increased competition in the financial services sector and the inability to attract new customers; (vi) timely development and acceptance of new products and services; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) our risk management framework; (ix) interruptions in information technology and telecommunications systems and third-party services; (x) changes and uncertainty in benchmark interest rates, including the elimination of LIBOR and the development of a substitute; (xi) the effects of severe weather, natural disasters, widespread disease or pandemics, or other external events; (xii) the loss of key executives or employees; (xiii) changes in consumer spending; (xiv) integration of acquired businesses; (xv) unexpected outcomes of existing or new litigation; (xvi) changes in accounting policies and practices, such as the implementation of the current expected credit losses accounting standard; (xvii) the economic impact of armed conflict or terrorist acts involving the United States; (xviii) the ability to manage credit risk, forecast loan losses and maintain an adequate allowance for loan losses; (xix) declines in the value of our investment portfolio; (xx) the ability to raise additional capital; (xxi) cyber-attacks; (xxii) declines in real estate values; (xxiii) the effects of fraud on the part of our employees, customers, vendors or counterparties; and (xxiv) any other risks described in the “Risk Factors” sections of reports filed by Landmark with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. Additional information concerning Landmark and its business, including additional risk factors that could materially affect Landmark’s financial results, is included in our filings with the Securities and Exchange Commission.
Contacts: Michael E. Scheopner President and Chief Executive Officer Mark A. Herpich Chief Financial Officer (785) 565-2000 LANDMARK BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (unaudited)(Dollars in thousands) September 30, June 30, March 31, December 31, September 30, 2022 2022 2022 2021 2021 Assets Cash and cash equivalents $ 49,234 $ 30,413 $ 106,319 $ 189,213 $ 117,314 Interest-bearing deposits at other banks 8,844 8,360 6,381 7,378 7,629 Investment securities: U.S. treasury securities 127,445 135,459 119,882 42,675 40,314 U.S. federal agency obligations 4,979 14,931 17,013 17,195 17,297 Municipal obligations, tax exempt 128,392 134,994 130,915 137,984 140,788 Municipal obligations, taxable 61,959 49,356 45,586 40,046 38,988 Agency mortgage-backed securities 161,331 151,893 153,587 142,817 133,502 Investment securities available-for-sale, at fair value 484,106 486,633 466,983 380,717 370,889 Bank stocks, at cost 6,641 2,881 2,856 2,905 2,985 Loans: One-to-four family residential real estate 205,466 192,517 169,514 166,081 161,120 Construction and land 18,119 23,092 25,408 27,644 26,658 Commercial real estate 228,669 209,879 196,736 198,472 193,455 Commercial 144,582 137,929 127,226 132,154 135,790 Paycheck Protection Program (PPP) 410 652 5,218 17,179 28,671 Agriculture 86,114 78,240 82,484 94,267 91,305 Municipal 2,036 2,076 2,212 2,050 2,115 Consumer 25,911 25,531 24,751 24,541 25,624 Total gross loans 711,307 669,916 633,549 662,388 664,738 Net deferred loan (fees) costs and loans in process (311 ) 229 (43 ) (380 ) 936 Allowance for loan losses (8,858 ) (8,315 ) (8,357 ) (8,775 ) (8,766 ) Loans, net 702,138 661,830 625,149 653,233 656,908 Loans held for sale 2,741 6,264 5,424 4,795 8,929 Bank owned life insurance 32,672 32,483 32,293 32,106 31,914 Premises and equipment, net 20,628 20,679 20,919 20,803 20,361 Goodwill 17,532 17,532 17,532 17,532 17,532 Other intangible assets, net 36 52 67 84 104 Mortgage servicing rights 3,980 4,025 4,128 4,193 4,201 Real estate owned, net 1,288 1,288 1,288 2,551 2,578 Other assets 25,456 19,911 17,095 13,458 13,190 Total assets $ 1,355,296 $ 1,292,351 $ 1,306,434 $ 1,328,968 $ 1,254,534 Liabilities and Stockholders' Equity Liabilities: Deposits: Non-interest-bearing demand 347,942 343,107 350,342 350,005 317,827 Money market and checking 504,973 520,056 517,936 536,868 488,213 Savings 170,988 170,419 167,823 155,501 151,380 Certificates of deposit 93,234 97,885 103,464 106,107 109,267 Total deposits 1,117,137 1,131,467 1,139,565 1,148,481 1,066,687 Federal Home Loan Bank borrowings 74,900 - - - - Subordinated debentures 21,651 21,651 21,651 21,651 21,651 Other borrowings 16,349 6,223 7,004 7,403 6,219 Accrued interest and other liabilities 19,775 15,708 14,701 15,790 24,571 Total liabilities 1,249,812 1,175,049 1,182,921 1,193,325 1,119,128 Stockholders' equity: Common stock 50 50 50 50 48 Additional paid-in capital 79,329 79,284 79,206 79,120 72,489 Retained earnings 58,114 56,662 54,677 52,593 56,957 Treasury stock, at cost (1,040 ) (538 ) - - - Accumulated other comprehensive (loss) income (30,969 ) (18,156 ) (10,420 ) 3,880 5,912 Total stockholders' equity 105,484 117,302 123,513 135,643 135,406 Total liabilities and stockholders' equity $ 1,355,296 $ 1,292,351 $ 1,306,434 $ 1,328,968 $ 1,254,534 LANDMARK BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Earnings (unaudited)
(Dollars in thousands, except per share amounts) Three months ended, Nine months ended, September 30, June 30, September 30, September 30, September 30, 2022 2022 2021 2022 2021 Interest income: Loans $ 8,025 $ 7,156 $ 8,461 $ 22,372 $ 25,705 Investment securities: Taxable 1,783 1,543 782 4,379 2,356 Tax-exempt 780 730 748 2,232 2,285 Total interest income 10,588 9,429 9,991 28,983 30,346 Interest expense: Deposits 771 358 258 1,324 800 Borrowed funds 366 173 120 665 362 Total interest expense 1,137 531 378 1,989 1,162 Net interest income 9,451 8,898 9,613 26,994 29,184 Provision for (reversal of) loan losses 500 - - - 500 Net interest income after provision for loan losses 8,951 8,898 9,613 26,994 28,684 Non-interest income: Fees and service charges 2,511 2,380 2,268 7,079 6,454 Gains on sales of loans, net 1,049 1,073 2,660 3,027 8,664 Bank owned life insurance 189 190 193 566 494 (Losses) gains on sales of investment securities, net (353 ) - 30 (353 ) 1,138 Other 133 153 314 569 913 Total non-interest income 3,529 3,796 5,465 10,888 17,663 Non-interest expense: Compensation and benefits 5,051 4,953 5,132 14,779 15,096 Occupancy and equipment 1,335 1,177 1,101 3,745 3,268 Data processing 383 362 498 1,085 1,491 Amortization of mortgage servicing rights and other intangibles 314 335 376 965 1,225 Professional fees 472 415 413 1,338 1,236 Acquisition costs 134 221 - 355 - Other 1,769 1,559 1,923 5,051 5,390 Total non-interest expense 9,458 9,022 9,443 27,318 27,706 Earnings before income taxes 3,022 3,672 5,635 10,564 18,641 Income tax expense 522 639 1,118 1,898 3,777 Net earnings $ 2,500 $ 3,033 $ 4,517 $ 8,666 $ 14,864 Net earnings per share (1) Basic $ 0.50 $ 0.61 $ 0.90 $ 1.74 $ 2.98 Diluted 0.50 0.61 0.90 1.73 2.97 Dividends per share (1) 0.21 0.21 0.19 0.63 0.57 Shares outstanding at end of period (1) 4,973,301 4,976,344 4,997,618 4,973,301 4,997,618 Weighted average common shares outstanding - basic (1) 4,979,305 4,988,416 4,996,419 4,988,327 4,993,808 Weighted average common shares outstanding - diluted (1) 4,992,450 5,002,425 5,010,973 5,003,158 5,003,615 Tax equivalent net interest income $ 9,657 $ 9,094 $ 9,815 $ 27,591 $ 29,800 (1) Share and per share values at or for the periods ended September 30, 2021 have been adjusted to give effect to the 5% stock dividend paid during December 2021.
LANDMARK BANCORP, INC. AND SUBSIDIARIES
Select Ratios and Other Data (unaudited)As of or for the (Dollars in thousands, except per share amounts) three months ended, Nine months ended, September 30, June 30, September 30, September 30, September 30, 2022 2022 2021 2022 2021 Performance ratios: Return on average assets (1) 0.76 % 0.93 % 1.42 % 0.89 % 1.59 % Return on average equity (1) 8.33 % 10.04 % 13.36 % 9.33 % 15.23 % Net interest margin (1)(2) 3.21 % 3.05 % 3.36 % 3.08 % 3.47 % Effective tax rate 17.3 % 17.4 % 19.8 % 18.0 % 20.3 % Efficiency ratio (3) 69.6 % 69.1 % 61.2 % 70.4 % 59.8 % Non-interest income to total income (3) 29.1 % 29.9 % 36.0 % 29.2 % 36.1 % Average balances: Investment securities $ 494,283 $ 477,035 $ 351,215 $ 464,702 $ 329,427 Loans 687,716 653,013 667,952 659,109 702,450 Assets 1,307,866 1,307,112 1,261,954 1,306,938 1,248,827 Interest-bearing deposits 782,533 791,257 769,658 788,678 768,057 Subordinated debentures and other borrowings 37,532 21,651 21,655 27,003 21,654 Repurchase agreements 7,411 6,981 5,348 7,074 5,218 Stockholders' equity $ 119,100 $ 121,147 $ 134,167 $ 124,177 $ 130,521 Average tax equivalent yield/cost (1): Investment securities 2.18 % 1.97 % 1.88 % 2.00 % 2.08 % Loans 4.63 % 4.40 % 5.03 % 4.54 % 4.90 % Total interest-bearing assets 3.59 % 3.23 % 3.49 % 3.31 % 3.61 % Interest-bearing deposits 0.39 % 0.18 % 0.13 % 0.22 % 0.14 % Subordinated debentures and other borrowings 3.58 % 3.06 % 2.14 % 3.10 % 2.19 % Repurchase agreements 1.45 % 0.46 % 0.22 % 0.72 % 0.18 % Total interest-bearing liabilities 0.55 % 0.26 % 0.19 % 0.32 % 0.20 % Capital ratios: Equity to total assets 7.78 % 9.08 % 10.79 % Tangible equity to tangible assets (3) 6.57 % 7.82 % 9.52 % Book value per share $ 21.21 $ 23.57 $ 27.09 Tangible book value per share (3) $ 17.68 $ 20.04 $ 23.57 Rollforward of allowance for loan losses: Beginning balance $ 8,315 $ 8,357 $ 9,163 $ 8,775 $ 8,775 Charge-offs (106 ) (76 ) (616 ) (235 ) (908 ) Recoveries 149 34 219 318 399 Provision for loan losses 500 - - - 500 Ending balance $ 8,858 $ 8,315 $ 8,766 $ 8,858 $ 8,766 Non-performing assets: Non-accrual loans $ 4,823 $ 4,887 $ 9,829 Accruing loans over 90 days past due - - - Real estate owned 1,288 1,288 2,578 Total non-performing assets $ 6,111 $ 6,175 $ 12,407 Loans 30-89 days delinquent $ 657 $ 877 $ 1,542 Other ratios: Loans to deposits 62.85 % 58.49 % 61.58 % Loans 30-89 days delinquent and still accruing to gross loans outstanding 0.09 % 0.13 % 0.23 % Total non-performing loans to gross loans outstanding 0.68 % 0.73 % 1.48 % Total non-performing assets to total assets 0.45 % 0.48 % 0.99 % Allowance for loan losses to gross loans outstanding 1.25 % 1.24 % 1.32 % Allowance for loan losses to gross loans outstanding excluding PPP loans 1.25 % 1.24 % 1.38 % Allowance for loan losses to total non-performing loans 183.66 % 170.15 % 89.19 % Net loan charge-offs to average loans (1) -0.02 % 0.03 % 0.24 % -0.02 % 0.10 % (1) Information is annualized.
(2) Net interest margin is presented on a fully tax equivalent basis, using a 21% federal tax rate.
(3) Non-GAAP financial measures. See the "Non-GAAP Financial Measures" section of this press release for a reconciliation to the most comparable GAAP equivalent.LANDMARK BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Finacials Measures (unaudited)As of or for the (Dollars in thousands, except per share amounts) three months ended, Nine months ended, September 30, June 30, September 30, September 30, September 30, 2022 2022 2021 2022 2021 Non-GAAP financial ratio reconciliation: Total non-interest expense $ 9,458 $ 9,022 $ 9,443 $ 27,318 $ 27,706 Less: foreclosure and real estate owned expense (32 ) (9 ) (215 ) (64 ) (291 ) Less: amortization of other intangibles (16 ) (15 ) (28 ) (48 ) (102 ) Less: acquisition costs (134 ) (221 ) - (355 ) - Adjusted non-interest expense (A) 9,276 8,777 9,200 26,851 27,313 Net interest income (B) 9,451 8,898 9,613 26,994 29,184 Non-interest income 3,529 3,796 5,465 10,888 17,663 Less: losses (gains) on sales of investment securities, net 353 - (30 ) 353 (1,138 ) Less: gains on sales of premises and equipment and foreclosed assets - - (19 ) (114 ) (24 ) Adjusted non-interest income (C) $ 3,882 $ 3,796 $ 5,416 $ 11,127 $ 16,501 Efficiency ratio (A/(B+C)) 69.6 % 69.1 % 61.2 % 70.4 % 59.8 % Non-interest income to total income (C/(B+C)) 29.1 % 29.9 % 36.0 % 29.2 % 36.1 % Total stockholders' equity $ 105,484 $ 117,302 $ 135,406 Less: goodwill and other intangible assets (17,568 ) (17,584 ) (17,636 ) Tangible equity (D) $ 87,916 $ 99,718 $ 117,770 Total assets $ 1,355,296 $ 1,292,351 $ 1,254,534 Less: goodwill and other intangible assets (17,568 ) (17,584 ) (17,636 ) Tangible assets (E) $ 1,337,728 $ 1,274,767 $ 1,236,898 Tangible equity to tangible assets (D/E) 6.57 % 7.82 % 9.52 % Shares outstanding at end of period (F) 4,973,301 4,976,344 4,997,618 Tangible book value per share (D/F) $ 17.68 $ 20.04 $ 23.57 
