Dogwood State Bank (OTC: DSBX) (“Dogwood” or the “Bank”) announced today its financial results for the three and twelve months ended December 31, 2024.
Fourth Quarter and Full Year 2024 Highlights
— Adjusted net income (non-GAAP) improved to $6.6 million, or $0.35 per diluted share, in Q4 2024 and improved to $18.7 million, or $1.12 per diluted share, in FY 2024
— Adjusted pre-tax, pre-provision net revenue (non-GAAP) improved to $9.7 million in Q4 2024 and improved to $28.8 million in FY 2024
— Net interest margin expanded to 4.13% in Q4 2024 and expanded to 3.80% in FY 2024
— Adjusted efficiency ratio (non-GAAP) improved to 61.06% in Q4 2024 and improved to 62.76% in FY 2024
— Dogwood completed the acquisition of Community First Bancorporation (“Community First”) on August 1, 2024
— Dogwood Small Business Lending was recognized as the 3rd largest North Carolina SBA lender and 29th largest in the nation in the SBA's 2024 fiscal year
“We are proud to close out the year with strong performance, reflecting the hard work, dedication, and innovation of our entire team,” commented Steve Jones, Chief Executive Officer. “Our successful acquisition and integration of Community First was transformational for our organization. We delivered exceptional value to our stakeholders, advanced key initiatives, and positioned ourselves for sustained growth in the years ahead. As we move forward, we remain committed to executing our strategy, fostering innovation, and delivering meaningful results for our customers and shareholders, while continuing to focus on building and nurturing strong relationships within our communities.
Q4 2024 Earnings Performance
Dogwood reported GAAP net income in Q4 2024 of $6.2 million, or $0.32 per diluted share, compared to $2.9 million, or $0.20 per diluted share, in Q4 2023. Current quarter GAAP earnings were negatively impacted by merger & acquisition expenses of $595 thousand related to the acquisition of Community First.
Adjusted net income (non-GAAP) in Q4 2024, which excludes the impact of merger & acquisition expenses, increased to $6.6 million, or $0.35 per diluted share, from $2.9 million, or $0.20 per diluted share, in Q4 2023. Adjusted pre-tax, pre-provision net revenue (non-GAAP) in Q4 2024 was $9.7 million, an increase from $5.5 million in Q4 2023.
Net Interest Income
Net interest income was $21.1 million in Q4 2024, an increase from $11.9 million in Q4 2023. The increase was primarily due to significant growth in interest-earning assets over the past year, including an increase in assets from the Community First acquisition, and an expansion in net interest margin.
Total average interest-earning assets increased to $2.04 billion in Q4 2024 from $1.27 billion in Q4 2023. Average loans increased by $749.8 million. Average investment securities balances increased by $50.8 million.
Net interest margin expanded to 4.13% in Q4 2024 from 3.43% in Q4 2023. Higher yields on interest-earning assets coupled with a more favorable mix of those assets contributed to the improved net interest margin.
Provision for Credit Losses and Asset Quality
Provision for credit losses was $1.1 million in Q4 2024, a decrease from $1.6 million in Q4 2023. The allowance for credit losses to total loans was 1.08% as of Q4 2024, compared to 1.09% as of both Q3 2024 and Q4 2023.
Nonperforming loans were 0.33% of total loans as of Q4 2024, compared to 0.18% as of Q3 2024, and 0.15% as of Q4 2023. Annualized net charge offs were 0.13% of average loans in Q4 2024, compared to 0.17% in Q3 2024 and 0.02% in Q4 2024. The vast majority of charge offs recognized in Q4 2024 were related to unguaranteed portions of U.S. Small Business Administration (“SBA”) loans.
Non-Interest Income
Non-interest income was $3.7 million in both Q4 2024 and Q4 2023. SBA lending income as well as service charges & debit card income increased over this period, but a $1.2 million gain on the early payoff of $50 million of term FHLB advances in Q4 2023 offset these increases.
SBA lending income rose by $381 thousand due to higher secondary market premiums on sales of guaranteed loans sold in the quarter and higher servicing fee income. The weighted average net premium on SBA loans sold in Q4 2024 was 8.95%, an increase from 8.14% in Q4 2023. Guaranteed balances of SBA loans sold totaled $23.2 million in Q4 2024, which was a decrease from $25.4 million in Q4 2023.
Service charges and debit card income increased by $611 thousand, which was primarily due to the Community First acquisition.
Non-Interest Expense
Non-interest expense was $15.8 million in Q4 2024, an increase from $10.2 million in Q4 2023. Merger & acquisition expenses of $595 thousand were incurred in Q4 2024 related to the Community First acquisition. These one-time expenses were primarily related to the systems conversion and other integration-related costs. Further, amortization of the Community First core deposit intangible, which was recognized in the acquisition, added $599 thousand to expense in the quarter.
Also contributing to the increase in non-interest expense, compensation and benefits grew by $2.5 million due partially to the increased headcount from the Community First acquisition as well as other investments that have been made in human capital across the Bank to support its organic growth.
Increases in expense items such as occupancy and equipment, software, data processing, and FDIC insurance were primarily due to the Community First acquisition.
Income Taxes
Dogwood had tax expense of $1.8 million in Q4 2024, compared to tax expense of $865 thousand in Q4 2023. The effective tax benefit rate was 22.73% in Q4 2024, which was similar to the effective tax rate of 22.77% in Q4 2023.
Full Year 2024 Earnings Performance
Dogwood reported GAAP net income in 2024 of $5.9 million, or $0.35 per diluted share, compared to net income of $10.6 million, or $0.72 per diluted share, in 2023. GAAP earnings in 2024 were negatively impacted by merger & acquisition expenses and a one-time provision charge on acquired PCD loans, both of which were related to the acquisition of Community First.
Adjusted net income (non-GAAP) in 2024, which excludes the impact of merger & acquisition expenses as well as the provision charge on acquired non-PCD loans, increased to $18.7 million, or $1.12 per diluted share, from $10.6 million, or $0.72 per diluted share, in 2023. Adjusted pre-tax, pre-provision net revenue (non-GAAP) in 2024 was $28.8 million, an increase from $18.8 million in 2023.
Net Interest Income
Net interest income was $63.1 million in 2024, an increase from $42.8 million in 2023. The increase was due to significant growth in interest-earning assets over the past year, including an increase in assets from the Community First acquisition, and an expansion in net interest margin.
Total average interest-earning assets increased to $1.66 billion in 2024 from $1.22 billion in 2023. Average loans increased by $435.8 million. Average investment securities balances increased by $25.3 million.
Net interest margin expanded to 3.80% in 2024 from 3.52% in 2023. While cost of funds increased by 0.44% over the periods under comparison, higher yields on interest-earning assets coupled with a more favorable mix of those assets contributed to the improved net interest margin.
Provision for Credit Losses and Asset Quality
Provision for credit losses was $9.9 million in 2024, an increase from $5.2 million in 2023. The increase in provision expense was primarily due to a one-time provision charge of $5.3 million on acquired non-PCD loans.
Non-Interest Income
Non-interest income was $14.2 million in 2024, an increase from $12.1 million in 2023. This increase was primarily related to SBA lending income as well as service charges and debit card income, partially offset by a $1.2 million gain on the early payoff of term FHLB advances in 2023.
SBA lending income rose by $1.5 million due to higher secondary market premiums on sales of guaranteed loans sold during the year and higher servicing fee income. The weighted average net premium on SBA loans sold in 2024 was 9.39%, an increase from 8.14% in 2023. Guaranteed balances of SBA loans sold totaled $102.7 million in 2024, which was a decrease from $105.1 million in 2023.
Service charges and debit card income increased by $1.1 million, which was primarily due to the Community First acquisition.
Non-Interest Expense
Non-interest expense was $59.8 million in 2024, an increase from $36.1 million in 2023. Merger & acquisition expenses of $11.3 million were incurred in 2024 to complete the Community First acquisition. These one-time expenses included placement agent fees, professional fees, executive change in control payments, vendor termination payments, and other merger-related costs. Further, amortization of the Community First core deposit intangible which was recognized in the acquisition added $1.0 million to expense.
Also contributing to the increase in non-interest expense, compensation and benefits grew by $7.0 million due partially to the increased headcount from the Community First acquisition as well as other investments that have been made in human capital across the Bank to support its organic growth.
Increases in expense items such as occupancy and equipment, software, data processing, and FDIC insurance were primarily due to the Community First acquisition.
Income Taxes
Dogwood had tax expense of $1.8 million in 2024, compared to tax expense of $3.0 million in 2023. The effective tax rate was 23.12% in 2024, which was slightly higher than the effective tax rate of 22.12% in 2023.
Community First Acquisition
On August 1, 2024, Dogwood completed the acquisition of Community First in an all-stock transaction. A total of 3.4 million shares of Dogwood voting common stock were issued in the transaction, which equated to total consideration paid of $54.3 million. Dogwood added $682.5 million in total assets, $474.1 million in gross loans, $572.1 million in total deposits, and $53.6 million in shareholders' equity to its balance sheet in the acquisition. As part of the purchase price allocation, $4.8 million in goodwill was recognized at acquisition.
About Dogwood State Bank
Dogwood State Bank is a state-chartered community bank headquartered in Raleigh, North Carolina, with approximately $2.2 billion in total assets. Dogwood provides a wide range of banking products and services through its online offerings and twenty-one branch offices in North Carolina, South Carolina, and Eastern Tennessee. Dogwood also specializes in providing lending services to small businesses through its Dogwood State Bank Small Business Lending division. Dogwood is focused on becoming the bank for businesses, business owners, professionals, and their employees and redefining what it means to Bank Local. By leveraging leadership, investing in technology, and committing to personalized, superior customer service, Dogwood is changing the landscape of community banking.
Forward-Looking Statements
Statements made in this press release, other than those concerning historical financial information, may be considered forward-looking statements, which speak only as of the date of this press release and are based on current expectations and involve a number of assumptions. Forward-looking statements can be identified by words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Our ability to predict results, or the actual effect of future plans or strategies, is inherently uncertain. Factors that could have a material effect on the Bank's operations and future prospects include but are not limited to: the expected growth opportunities or cost savings from the proposed merger (the “merger”) of Community First and Community First Bank, Inc. with and into the Bank may not be fully realized or may take longer to realize than expected; the businesses of the Bank and Community First may not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; deposit attrition, operating costs, customer losses and business disruption prior to and following the merger, including adverse effects on relationships with employees and customers, may be greater than expected; the regulatory and shareholder approvals required for the merger may not be obtained; changes in interest rates, general economic and business conditions; legislative/regulatory changes; the monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System; the quality and composition of the Bank's loan and securities portfolios; demand for loan products and other financial services in our market areas; inflation; deposit flows; competition; our implementation of new technologies and ability to develop and maintain secure and reliable electronic systems; changes in the securities markets; and changes in accounting principles, policies and guidelines. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. We undertake no obligation to update or clarify these forward-looking statements, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with United States generally accepted accounting principles (“GAAP”). The Bank uses the non-GAAP financial measures discussed herein in its analysis of the Bank's performance. The Bank's management believes that these non-GAAP financial measures enhance comparability of results of operations with prior periods by excluding the impact of items or events that may obscure trends in the Bank's performance. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Please refer to the Non-GAAP Reconciliation table for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measure.
Financial Tables
Dogwood State BankIncome Statements Quarter Ended Twelve Months Ended(Dollars in thousands, except per share data) Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Dec 31 Dec 31 2024 2024 2024 2024 2023 2024 2023Net interest income $ 21,129 $ 18,157 $ 12,521 $ 11,312 $ 11,900 $ 63,119 $ 42,784 Provision for credit losses 1,116 5,857 2,017 921 1,638 9,911 5,164 Net interest income after provision 20,013 12,300 10,504 10,391 10,262 53,208 37,620Non-interest income SBA lending 2,219 2,801 2,717 2,197 1,838 9,934 8,421 Service charges and debit card income 954 811 340 351 343 2,456 1,399 Bank-owned life insurance 346 301 219 211 201 1,079 751 Securities gains (losses), net 60 (8) (6) 6 5 52 77 Gain on payoff of FHLB advances – – – – 1,230 – 1,230 Other 160 293 161 85 93 697 251 Total non-interest income 3,739 4,198 3,431 2,850 3,710 14,218 12,129Non-interest expense Compensation and benefits 9,389 8,598 6,683 6,506 6,910 31,176 24,139 Occupancy and equipment 1,166 1,025 707 719 634 3,617 2,403 Software 561 497 344 346 343 1,748 1,375 Loan related costs 570 182 314 290 254 1,359 1,010 Data processing 780 648 315 261 245 2,004 914 Professional fees 157 208 235 225 242 825 971 FDIC insurance 390 287 204 240 239 1,122 734 Merger and acquisition expenses 595 9,139 562 958 14 11,254 14 Amortization of other intangible assets 599 408 4 11 18 1,022 111 Other 1,572 1,731 1,102 1,259 1,274 5,660 4,406 Total non-interest expense 15,779 22,723 10,470 10,815 10,173 59,787 36,077 Net income (loss) before income taxes 7,973 (6,225) 3,465 2,426 3,799 7,639 13,672Income tax expense (benefit) 1,812 (1,445) 811 588 865 1,766 3,024 Net income (loss) $ 6,161 $ (4,780) $ 2,654 $ 1,838 $ 2,934 $ 5,873 $ 10,648Pre-Tax, Pre-Provision Net Revenue (PPNR)(1) $ 9,089 $ (368) $ 5,482 $ 3,347 $ 5,437 $ 17,550 $ 18,836Adjusted PPNR(1) 9,684 8,771 6,044 4,305 5,451 28,804 18,850Per Share Data: Earnings per share (EPS) – basic $ 0.33 $ (0.28) $ 0.18 $ 0.13 $ 0.20 $ 0.36 $ 0.75 Adjusted EPS – basic(1) 0.36 0.37 0.21 0.18 0.21 1.15 0.75 Earnings per share – diluted 0.32 (0.28) 0.17 0.12 0.20 0.35 0.72 Adjusted EPS – diluted(1) 0.35 0.36 0.20 0.17 0.20 1.12 0.72Performance Ratios: Return on average assets (ROA) 1.13% -0.97% 0.71% 0.53% 0.80% 0.33% 0.83% Adjusted ROA(1) 1.22% 1.30% 0.83% 0.74% 0.81% 1.06% 0.83% Return on average equity (ROE) 10.73% -9.07% 6.16% 4.44% 7.15% 3.02% 6.87% Adjusted ROE(1) 11.53% 12.09% 7.16% 6.22% 7.18% 9.58% 6.88% Return on tangible common equity (ROTCE)(1) 11.96% -9.93% 6.42% 4.63% 7.48% 3.25% 7.20% Adjusted ROTCE(1) 12.85% 13.24% 7.46% 6.50% 7.51% 10.32% 7.21% Net interest margin 4.13% 3.93% 3.53% 3.41% 3.42% 3.80% 3.52% Efficiency ratio 63.45% 101.65% 65.63% 76.37% 65.17% 77.31% 65.70% Adjusted efficiency ratio(1) 61.06% 60.76% 62.11% 69.60% 65.08% 62.76% 65.67%(1) Denotes a non-GAAP measure. Refer to the non-GAAP reconciliation subsequently included in these materials for a reconciliation to the most directlycomparable GAAP measure. “Adjusted” items exclude the impact of merger and acquisition expenses.
Dogwood State BankBalance Sheets Ending Balance(In thousands, except per share data) Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2024 2024 2024 2024 2023AssetsCash and due from banks $ 10,582 $ 7,622 $ 2,514 $ 2,353 $ 5,191Interest-earning deposits with banks 75,612 146,732 59,073 91,365 123,474 Total cash and cash equivalents 86,194 154,354 61,587 93,718 128,665Investment securities available for sale 99,411 95,290 58,989 55,984 49,244Investment securities held to maturity 71,952 73,144 74,404 76,119 77,557Marketable equity securities 395 335 329 336 329 Total investment securities 171,758 168,769 133,722 132,439 127,130Loans held for sale 6,733 7,924 11,030 8,146 15,274Loans 1,819,796 1,757,828 1,236,722 1,148,899 1,095,339Less allowance for credit losses (19,698) (19,143) (13,349) (12,344) (11,943) Loans, net 1,800,098 1,738,685 1,223,373 1,136,555 1,083,396Bank-owned life insurance 45,089 44,743 27,888 27,669 27,458Premises and equipment, net 37,180 35,378 19,713 18,838 18,707SBA servicing asset 4,982 5,026 4,568 4,373 3,967Goodwill 11,771 11,771 7,016 7,016 7,016Other intangible assets, net 11,374 11,972 – 4 15Other assets 35,991 36,274 21,854 19,750 20,060 Total assets $ 2,211,170 $ 2,214,896 $ 1,510,751 $ 1,448,508 $ 1,431,688Liabilities and Shareholders' EquityDeposits: Noninterest-bearing $ 474,458 $ 483,908 $ 379,465 $ 302,705 $ 291,910 Interest-bearing 1,334,937 1,357,439 872,430 913,914 902,369 Total deposits 1,809,395 1,841,347 1,251,895 1,216,619 1,194,279FHLB advances 130,164 101,686 60,000 40,000 50,000Subordinated debt 9,708 9,627 – – -Lease obligations 12,258 10,491 10,726 10,959 11,187Other liabilities 19,456 26,503 13,162 11,459 11,719 Total liabilities 1,980,981 1,989,654 1,335,783 1,279,037 1,267,185Shareholders' equity Common stock ($1 par value) 18,976 18,980 15,541 15,020 14,710 Additional paid-in capital 188,175 187,981 137,431 135,077 132,373 Retained earnings 28,280 22,118 26,897 24,244 22,406 Accumulated other comprehensive loss (5,242) (3,837) (4,901) (4,870) (4,986) Total shareholders' equity 230,189 225,242 174,968 169,471 164,503 Total liabilities and shareholders' equity $ 2,211,170 $ 2,214,896 $ 1,510,751 $ 1,448,508 $ 1,431,688Per Share Information: Shares outstanding 18,976 18,980 15,541 15,020 14,710 Book value per share $ 12.13 $ 11.87 $ 11.26 $ 11.28 $ 11.18 Tangible book value per share(1) $ 10.91 $ 10.62 $ 10.81 $ 10.82 $ 10.71Capital Ratios: Tier 1 leverage 9.83% 10.58% 12.14% 11.75% 11.05% Common equity Tier 1 capital 10.70% 10.70% 12.64% 13.12% 13.47% Tier 1 risk-based capital 10.70% 10.70% 12.64% 13.12% 13.47% Total risk-based capital 12.32% 12.34% 13.81% 14.29% 14.65% Tangible common equity(1) 9.46% 9.20% 11.17% 11.27% 11.05%(1) Denotes a non-GAAP measure. Refer to the non-GAAP reconciliation subsequently included in these materials for a reconciliation to the most directly comparable GAAP measure.
Dogwood State BankAsset Quality Measures Quarter Ended(Dollars in thousands) Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2024 2024 2024 2024 2023Nonperforming Assets: Non-accrual loans $ 5,582 $ 3,234 $ 2,069 $ 1,938 $ 1,670 Loans 90 days or more past due and accruing 338 – – – – Other real estate owned 104 104 – – – Total nonperforming assets $ 6,024 $ 3,338 $ 2,069 $ 1,938 $ 1,670Asset Quality Ratios: Nonperforming loans/loans 0.33% 0.18% 0.17% 0.17% 0.15% Nonperforming assets/total assets 0.27% 0.15% 0.14% 0.13% 0.12% Nonperforming assets/loans and other real estate owned 0.33% 0.19% 0.17% 0.17% 0.15% Loans 30 days or more past due/loans (excludes non-accruals) 0.67% 0.29% 0.21% 0.41% 0.23%Allowance for Credit Losses (ACL): ACL on Loans: Balance, beginning of period $ 19,143 $ 13,349 $ 12,344 $ 11,943 $ 11,385 Reclass of Day 1 ACL from loan fair value discount on acquired PCD loans – 658 – – – Loans charged off (614) (738) (987) (288) (81) Recoveries of loans previously charged off 29 79 11 9 40 Net loans charged off (585) (659) (976) (279) (41) Provision for credit losses 1,140 5,795 1,981 680 599 Balance, end of period $ 19,698 $ 19,143 $ 13,349 $ 12,344 $ 11,943 ACL on Off-Balance Sheet Credit Exposures: Balance, beginning of period $ 2,595 $ 2,336 $ 2,300 $ 2,059 $ 1,020 Reserve on acquired unfunded loan commitments – 197 – – – Provision for credit losses (24) 62 36 241 1,039 Balance, end of period $ 2,571 $ 2,595 $ 2,336 $ 2,300 $ 2,059Allowance for Credit Losses Ratios: Allowance for credit losses/loans 1.08% 1.09% 1.08% 1.07% 1.09% Allowance for credit losses/nonperforming loans 332.74% 591.93% 645.19% 636.95% 715.15% Net charge-offs/average loans (annualized) 0.13% 0.17% 0.33% 0.10% 0.02%
Dogwood State BankNet Interest Margin Analysis Quarter Ended December 31, 2024 September 30, 2024 December 31, 2023(Dollars in thousands) Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ Balance Expense Rate Balance Expense Rate Balance Expense RateInterest-Earning Assets: Loans $ 1,772,350 $ 30,524 6.85% $ 1,585,101 $ 27,589 6.92% $ 1,022,537 $ 15,959 6.19% Investment securities 170,307 1,635 3.82% 152,851 1,361 3.54% 119,534 840 2.79% Interest-earning deposits with banks 93,153 1,005 4.29% 100,616 1,272 5.03% 131,977 1,710 5.14% Total interest-earning assets 2,035,810 33,164 6.48% 1,838,568 30,222 6.54% 1,274,048 18,509 5.76%Non interest-earning assets 129,999 116,334 65,619 Total assets $ 2,165,809 $ 1,954,902 $ 1,339,667Interest-Bearing Liabilities: Interest-bearing demand $ 175,373 $ 468 1.06% $ 165,104 $ 531 1.28% $ 109,731 $ 254 0.92% Savings and money market 759,932 6,006 3.14% 696,594 6,502 3.71% 448,059 4,199 3.72% Time 395,409 4,489 4.52% 319,104 3,846 4.79% 225,987 2,489 4.37% Total interest-bearing deposits 1,330,714 10,963 3.28% 1,180,802 10,879 3.67% 783,777 6,942 3.51% FHLB advances 68,177 797 4.65% 76,176 979 5.11% 50,435 505 3.97% Subordinated debt 9,659 209 8.61% 6,630 139 0.00% – – 0.00% Lease obligations 10,404 66 2.52% 10,353 68 2.61% 10,606 59 2.21% Total interest-bearing liabilities 1,418,954 12,035 3.37% 1,273,961 12,065 3.77% 844,818 7,506 3.52%Non-interest bearing deposits 496,016 451,987 326,827Other liabilities 22,497 19,280 8,813Shareholders' equity 228,342 209,674 159,209 Total liabilities and shareholders' equity $ 2,165,809 $ 1,954,902 $ 1,339,667Net interest income and interest rate spread $ 21,129 3.11% $ 18,157 2.77% $ 11,005 2.24%Net interest margin 4.13% 3.93% 3.43%Cost of funds 2.50% 2.78% 2.54%Cost of deposits 2.39% 2.65% 2.48% Twelve Months Ended December 31, 2024 December 31, 2023(Dollars in thousands) Average Income/ Yield/ Average Income/ Yield/ Balance Expense Rate Balance Expense RateInterest-Earning Assets: Loans $ 1,420,334 $ 95,775 6.74% $ 984,510 $ 59,618 6.06% Investment securities 146,973 5,091 3.46% 121,632 3,405 2.80% Interest-earning deposits with banks 93,097 4,512 4.85% 109,396 5,480 5.01% Total interest-earning assets 1,660,404 105,378 6.35% 1,215,538 68,503 5.64%Non interest-earning assets 95,589 64,638 Total assets $ 1,755,993 $ 1,280,176Interest-Bearing Liabilities: Interest-bearing demand 145,803 $ 1,576 1.08% $ 114,956 $ 1,037 0.90% Savings and money market 666,483 24,858 3.73% 436,020 14,831 3.40% Time 268,658 12,508 4.66% 197,264 7,781 3.94% Total interest-bearing deposits 1,080,944 38,942 3.60% 748,240 23,649 3.16% FHLB advances 53,280 2,696 5.06% 42,069 1,831 4.35% Subordinated debt 3,504 348 9.93% – – – Lease obligation 11,262 273 2.42% 10,260 240 2.34% Total interest-bearing liabilities 1,148,990 42,259 3.68% 800,569 25,720 3.21%Non-interest bearing deposits 395,495 315,963Other liabilities 16,898 8,657Shareholders' equity 194,610 154,987 Total liabilities and shareholders' equity $ 1,755,993 $ 1,280,176Net interest income and interest rate spread $ 63,119 2.67% $ 42,783 2.42%Net interest margin 3.80% 3.52%Cost of funds 2.74% 2.30%Cost of deposits 2.64% 2.22%
Dogwood State BankNon-GAAP Reconciliation Quarter Ended Twelve Months Ended(In thousands, except per share data) Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Dec 31 Dec 31 2024 2024 2024 2024 2023 2024 2023Net income and EPS: Net income (loss) (GAAP) $ 6,161 $ (4,780) $ 2,654 $ 1,838 $ 2,934 $ 5,873 $ 10,648 Adjust for provision on acquired non-PCD loans, net of tax – 4,111 – – – 4,111 – Adjust for merger and acquisition expenses, net of tax 458 7,039 433 738 11 8,668 11 Adjusted net income (non-GAAP) $ 6,619 $ 6,369 $ 3,087 $ 2,576 $ 2,945 $ 18,651 $ 10,659 Weighted average common shares outstanding Basic 18,488 17,301 14,905 14,377 14,329 16,275 14,152 Diluted 18,978 17,810 15,480 15,075 15,039 16,726 14,839 EPS (GAAP) Basic $ 0.33 $ (0.28) $ 0.18 $ 0.13 $ 0.20 $ 0.36 $ 0.75 Diluted 0.32 (0.28) 0.17 0.12 0.20 0.35 0.72 Adjusted EPS (non-GAAP) Basic $ 0.36 $ 0.37 $ 0.21 $ 0.18 $ 0.21 $ 1.15 $ 0.75 Diluted 0.35 0.36 0.20 0.17 0.20 1.12 0.72PPNR: Net income (loss) (GAAP) $ 6,161 $ (4,780) $ 2,654 $ 1,838 $ 2,934 $ 5,873 $ 10,648 Add: Provision for credit losses 1,116 5,857 2,017 921 1,638 9,911 5,164 Income tax expense (benefit) 1,812 (1,445) 811 588 865 1,766 3,024 PPNR (non-GAAP) 9,089 (368) 5,482 3,347 5,437 17,550 18,836 Add: merger and acquisition expenses 595 9,139 562 958 14 11,254 14 Adjusted PPNR (non-GAAP) $ 9,684 $ 8,771 $ 6,044 $ 4,305 $ 5,451 $ 28,804 $ 18,850ROA: Net income (loss) (GAAP) $ 6,161 $ (4,780) $ 2,654 $ 1,838 $ 2,934 $ 5,873 $ 10,648 Adjusted net income (non-GAAP) 6,619 6,369 3,087 2,576 2,945 18,651 10,659 Average assets 2,165,809 1,954,902 1,494,353 1,402,220 1,448,929 1,755,993 1,280,176 ROA 1.13% -0.97% 0.71% 0.53% 0.80% 0.33% 0.83% Adjusted ROA (non-GAAP) 1.22% 1.30% 0.83% 0.74% 0.81% 1.06% 0.83%ROE and ROTCE: Net income (loss) (GAAP) $ 6,161 $ (4,780) $ 2,654 $ 1,838 $ 2,934 $ 5,873 $ 10,648 Adjusted net income (non-GAAP) 6,619 6,369 3,087 2,576 2,945 18,651 10,659 Average shareholders' equity (GAAP) 228,342 209,674 173,356 166,534 162,703 194,610 154,987 Less: average goodwill and other intangible assets, net 23,426 18,234 7,018 7,027 7,041 13,964 7,080 Average tangible common equity (non-GAAP) 204,916 191,440 166,338 159,507 155,662 180,646 147,907 ROE 10.73% -9.07% 6.16% 4.44% 7.15% 3.02% 6.87% Adjusted ROE (non-GAAP) 11.53% 12.09% 7.16% 6.22% 7.18% 9.58% 6.88% ROTCE (non-GAAP) 11.96% -9.93% 6.42% 4.63% 7.48% 3.25% 7.20% Adjusted ROTCE (non-GAAP) 12.85% 13.24% 7.46% 6.50% 7.51% 10.32% 7.21%Efficiency Ratio: Non-interest expense (GAAP) $ 15,779 $ 22,723 $ 10,470 $ 10,815 $ 10,173 $ 59,787 $ 36,077 Less: merger and acquisition expenses 595 9,139 562 958 14 11,254 14 Adjusted non-interest expense (non-GAAP) 15,184 13,584 9,908 9,857 10,159 48,533 36,063 Net interest income 21,129 18,157 12,521 11,312 11,900 63,119 42,784 Non-interest income 3,739 4,198 3,431 2,850 3,710 14,218 12,129 Total revenue 24,868 22,355 15,952 14,162 15,610 77,337 54,913 Efficiency ratio (non-interest expense / total revenue) 63.45% 101.65% 65.63% 76.37% 65.17% 77.31% 65.70% Adjusted efficiency ratio (non-GAAP) 61.06% 60.76% 62.11% 69.60% 65.08% 62.76% 65.67%Tangible Book Value per Share and Tangible Common Equity Ratio: Shareholders' equity (GAAP) $ 230,189 $ 225,242 $ 174,968 $ 169,471 $ 164,503 $ 230,189 $ 164,503 Less: goodwill and other intangible assets, net 23,145 23,743 7,016 7,020 7,031 23,145 7,031 Tangible common equity (non-GAAP) 207,044 201,499 167,952 162,451 157,472 207,044 157,472 Common shares outstanding 18,976 18,980 15,541 15,020 14,710 18,976 14,710 Book value per share $ 12.13 $ 11.87 $ 11.26 $ 11.28 $ 11.18 $ 12.13 $ 11.18 Tangible book value per share (non-GAAP) 10.91 10.62 10.81 10.82 10.71 10.91 10.71 Total assets (GAAP) $ 2,211,170 $ 2,214,896 $ 1,510,751 $ 1,448,508 $ 1,431,688 $ 2,211,170 $ 1,431,688 Less: goodwill and other intangible assets, net 23,145 23,743 7,016 7,020 7,031 23,145 7,031 Tangible assets (non-GAAP) 2,188,025 2,191,153 1,503,735 1,441,488 1,424,657 2,188,025 1,424,657 Tangible common equity to tangible assets (non-GAAP) 9.46% 9.20% 11.17% 11.27% 11.05% 9.46% 11.05%
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