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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Description
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99.1
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| 104 | Cover Page Interactive Data File (Embedded within the Inline XBRL document) |
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SUMMIT FINANCIAL GROUP, INC.
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Date: April 27, 2023
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By: /s/ Julie R. Markwood
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Julie R. Markwood
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Executive Vice President and Chief Accounting Officer
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EXHIBIT 99.1
FOR RELEASE 6:00 AM ET, April 27, 2023
Contact: Robert S. Tissue, Executive Vice President & CFO
Telephone: (304) 530-0552
Email: rtissue@summitfgi.com
SUMMIT FINANCIAL GROUP REPORTS FIRST QUARTER 2023 EARNINGS OF $1.08 PER SHARE, FUELED BY CONTINUED LOAN AND DEPOSIT GROWTH, AND IMPROVED NET INTEREST MARGIN
Core Deposits and Loans increased 3.0% and 2.1%, respectively, during Q1 2023
MOOREFIELD, WV – April 27, 2023 (GLOBE NEWSWIRE) – Summit Financial Group, Inc. (“Company” or “Summit”) (NASDAQ: SMMF) today reported financial results for the first quarter of 2023, revealing a strong earnings performance marked by notable growth in both loans and total revenue. The Company’s continued success underscores its position as a reliable partner in the financial services industry, reflecting a sound strategy and solid operational execution.
The Company, which serves commercial and individual clients across West Virginia, the Washington D.C. metropolitan area, Virginia and Kentucky through Summit Community Bank, Inc., reported net income applicable to common shares of $13.9 million, or $1.08 per diluted share, for the first quarter of 2023, as compared to $14.9 million, or $1.16 per diluted share, for the fourth quarter of 2022 and $11.5 million, or $0.90 per diluted share, for the first quarter of 2022.
"We had a strong start to the year with impressive loan and deposit growth in the first quarter of 2023, increased tangible book value per common share, and improved net interest margin. We maintained strong credit quality and improved our provision for credit losses while achieving a low efficiency ratio through expense management,” noted H. Charles Maddy, III, President and Chief Executive Officer. “Despite challenging conditions, we remain optimistic about our growth prospects and are excited about our recent acquisition of PSB Holding Corp. and its bank subsidiary, Provident State Bank, Inc., which will enable us to expand our footprint in the Eastern Shore of Maryland and Delaware. I am confident that our bank is well-positioned to deliver long-term shareholder value through organic growth and strategic acquisitions."
Key Highlights for the First Quarter of 2023
|
● |
Despite concerns about the banking industry’s stability of deposit bases and adequacy of liquidity levels as result of recent bank failures, Summit’s core deposits grew 3.0 percent (11.8 percent annualized) during the first quarter of 2023. |
|
● |
Total loans, excluding mortgage warehouse lines of credit and Paycheck Protection Program (“PPP”) lending, increased 2.1 percent (8.3 percent annualized) during the first quarter of 2023 and 12.5 percent since March 31, 2022. |
|
● |
Tangible book value per common share (“TBVPS”) increased $1.20 (5.5 percent or 22.1 percent annualized) to $22.90 during the first quarter of 2023. This increase was due in part to unrealized net gains on debt securities available for sale, which added $0.59 per common share (net of deferred income taxes) recorded in Other Comprehensive Income (OCI), partially offset by a decrease in the fair values of derivative financial instruments hedging against higher interest rates, totaling $0.32 per common share (net of deferred income taxes) also recorded in OCI. |
|
● |
Net interest margin (“NIM”) increased 3 basis points to 3.83 percent from the linked quarter and by 22 basis points from the prior-year quarter, driven by increased yields on interest-earning assets, which were partially offset by higher costs of deposits and other funding. |
|
● |
Total noninterest expense increased 2.9 percent to $19.4 million in the first quarter of 2023, primarily due to acquisition-related expenses of $331,000 compared to $81,000 in the linked quarter. The annualized non-interest expense ratio increased slightly to 1.97 percent of average assets from 1.92 percent in the linked quarter and 1.91 percent in the year-ago period. |
|
● |
The bank achieved an efficiency ratio of 48.00 percent, an improvement from 49.44 percent in the prior-year quarter. |
|
● |
The bank incurred a provision for credit losses of $1.50 million in the first quarter of 2023, which increased the period-end allowance for loan credit losses to $40.8 million, or 1.32 percent of total loans and 559.2 percent of nonperforming loans. |
|
● |
Nonperforming assets (“NPAs”) improved to 0.31 percent of total assets at period end, down 2 basis points during the quarter and down 20 basis points from the prior-year quarter. |
|
● |
The Company completed its acquisition effective April 1, 2023, of PSB Holding Corp. and its bank subsidiary, Provident State Bank, Inc., headquartered in Preston, Maryland, expanding its footprint in the Eastern Shore of Maryland and Delaware. |
Results from Operations
Net interest income totaled $34.2 million in the first quarter of 2023, an increase of 15.7 percent from the prior-year first quarter, and a slight decrease of 0.5 percent from the linked quarter. NIM for the first quarter 2023 was 3.83 percent compared to 3.80 percent for the linked quarter and 3.61 percent for the prior-year quarter. Excluding the impact of accretion and amortization of fair value acquisition accounting adjustments, Summit’s net interest margin would have been 3.82 percent for the first quarter of 2023, 3.78 percent for the linked quarter and 3.57 percent for the prior-year quarter.
Noninterest income, consisting primarily of service fee income from community banking activities and trust and wealth management fees, for first quarter 2023 was $4.39 million compared to $4.87 million for the linked quarter and $4.55 million for the comparable period of 2022. The Company recorded realized securities losses on debt securities of $59,000 in the first quarter of 2023 and $24,000 in the linked quarter. In addition, the Company recognized net gains on equity investments of $45,000 in the first quarter 2023 compared to $280,000 in the linked quarter.
Mortgage origination revenue decreased to $171,000 in the first quarter of 2023 compared to $286,000 in the linked quarter and $339,000 for the year-ago period reflecting continuing negative impact of higher interest rates on demand for new mortgage loans. Mortgage origination revenue included an increase in the fair value of mortgage servicing rights of $140,000 for the linked quarter.
Excluding gains and losses on debt securities and equity investments, noninterest income was $4.40 million for the first quarter of 2023 compared to $4.61 million for the fourth quarter of 2022 and $4.33 million in the first quarter of 2022.
Revenue from net interest income and noninterest income, excluding gains and losses on debt securities and equity investments, increased 13.9 percent from $33.9 million in the first quarter of 2022 and declined 1.0 percent to $38.6 million for first quarter 2023 compared to $39.0 million during the linked quarter.
Total noninterest expense increased to $19.4 million in the first quarter of 2023, up 2.9 percent from $18.8 million in the linked quarter and up 12.8 percent from $17.2 million for the prior-year first quarter.
Salary and benefit expenses of $10.8 million in the first quarter of 2023 increased from $10.5 million for the linked quarter and $9.70 million from the prior-year first quarter. This increase was primarily due to higher group health insurance premiums.
Acquisition-related expense were $331,000 for Q1 2023 compared to $81,000 for the linked quarter and $29,000 for Q1 2022.
Other expenses were very controlled at $2.97 million for Q1 2023 compared to $2.93 million for the linked quarter and $2.46 million in the year-ago period.
Summit’s efficiency ratio was 48.00 percent in the first quarter of 2023, down from 49.44 percent for the first quarter of 2022 and marginally higher compared to 46.40 percent in the linked quarter. Non-interest expense to average assets was 1.97 percent in first quarter of 2023 compared to 1.92 percent in the linked quarter and 1.91 percent in the year-ago quarter.
Balance Sheet
As of March 31, 2023, total assets were $4.0 billion, an increase of $60.7 million, or 1.6 percent since December 31, 2022.
Total loans net of unearned fees remained unchanged at $3.1 billion as of March 31, 2023, and December 31, 2022, and increased 8.7 percent from the first quarter of 2022. Excluding PPP and mortgage warehouse lending, total loans grew to $3.0 billion on March 31, 2023, up 2.1 percent (or 8.3 percent annualized) during the first quarter.
Total commercial loans, including commercial and industrial (C&I) and commercial real estate (CRE) but excluding PPP lending, remained at $2.0 billion on March 31, 2023, up 1.6 percent (6.3 percent annualized) during the first quarter.
Residential real estate and consumer lending totaled $613.5 million on March 31, 2023, up 4.6 percent (18.5 percent annualized) during the first quarter.
As of March 31, 2023, PPP balances were paid down to zero and mortgage warehouse lines of credit, sourced solely from a participation arrangement with a large regional bank, totaled $86.2 million compared to $130.4 million as of December 31, 2022, and $164.9 million at the year-ago period end.
Deposits totaled $3.3 billion on March 31, 2023, a 4.1 percent (or 16.4 percent annualized) increase during the first quarter. Core deposits increased 3.0 percent (11.8 percent annualized) during the first quarter 2023 to $3.2 billion. Interest bearing checking deposits grew $142.7 million or 8.2 percent during the quarter and was partially offset by $16.2 million or 5.5 percent decrease in core time deposits. Adjusted uninsured deposits (excluding uninsured public deposits otherwise secured or collateralized as required by law) were 29.3 percent of total deposits at March 31, 2023 compared to 29.8 percent at year-end 2022 and 24.8 percent at the year-ago period end.
Total shareholders’ equity was $369.5 million as of March 31, 2023, compared to $354.5 million at December 31, 2022. Summit paid a quarterly common dividend of $0.20 per share in the first quarter of 2023.
During the first quarter 2023, TBVPS increased $1.20 to $22.90. TBVPS was negatively impacted by unrealized net losses on interest rate caps and swaps held as hedges against higher interest rates totaling $0.32 per common share (net of deferred income taxes) recorded in OCI. However, these losses were more than offset by unrealized net gains on AFS debt securities of $0.59 per common share (net of deferred income taxes), also recorded in OCI, in the same period.
Summit had 12,786,404 outstanding common shares at March 31, 2023, compared to 12,783,646 at year-end 2022.
As announced in the first quarter of 2020, the Board of Directors authorized the open market repurchase of up to 750,000 shares of the issued and outstanding shares of Summit's common stock, of which 323,577 shares have been repurchased to date. The timing and quantity of stock purchases under this repurchase plan are at the discretion of management. During the first quarter of 2023, no shares of Summit’s common stock were repurchased under the Plan.
Asset Quality
The Company recorded net loan recoveries of $63,000 during first quarter 2023 compared to net loan charge-offs (“NCOs”) of $1,000 in the fourth quarter of 2022. NCOs of $509,000 represented 0.07 percent of average loans annualized in the year-ago period.
Summit recorded a $1.50 million provision for credit losses in the first quarter of 2023, reflecting reserve build to support the Company’s loan growth and increasing forecasted economic uncertainty. The provision for credit losses was $1.50 million for the linked quarter and $1.95 million in the first quarter of 2022.
Summit’s allowance for loan credit losses was $40.8 million on March 31, 2023, $38.9 million at the end of the linked quarter, and $32.6 million on March 31, 2022.
The allowance for loan credit losses stood at 1.32 percent of total loans at March 31, 2023 compared to 1.26 percent at December 31, 2022. The allowance was 559.2 percent of nonperforming loans at March 31, 2023, compared to 497.2 percent at year-end 2022.
Summit’s allowance for credit losses on unfunded loan commitments was $6.57 million as of March 31, 2023, compared to $6.95 million at the end of the linked quarter. The allowance for credit losses on unfunded loan commitments decreased $375,000 during the most recent quarter, principally as a result of a change in the mix of unfunded commitments. Construction loan commitments, which on average have a higher historical loss ratio than do other loans, decreased, while commercial unfunded lines of credit, which carry a lower loss factor and lower utilization rates, increased.
As of March 31, 2023, nonperforming assets (“NPAs”), consisting of nonperforming loans, foreclosed properties, and repossessed assets, totaled $12.4 million, or 0.31 percent of assets, compared to NPAs of $12.9 million, or 0.33 percent of assets at year-end 2022.
About the Company
Summit Financial Group, Inc. is the $4.0 billion financial holding company for Summit Community Bank, Inc. Its talented bankers serve commercial and individual clients throughout West Virginia, the Washington, D.C. metropolitan area, Virginia, Kentucky, Eastern Shore of Maryland and Delaware. Summit’s focus on in-market commercial lending and providing other business banking services in dynamic markets is designed to leverage its highly efficient operations and core deposits in strong legacy locations. Residential and consumer lending, trust and wealth management, and other retail financial services are offered through convenient digital and mobile banking platforms, including MySummitBank.com and 53 full-service branch locations. More information on Summit Financial Group, Inc. (NASDAQ: SMMF), headquartered in West Virginia’s Eastern Panhandle in Moorefield, is available at SummitFGI.com.
Non-GAAP Financial Measures
In addition to the results of operations presented in accordance with Generally Accepted Accounting Principles (GAAP), Summit’s management uses, and this press release contains or references, certain non-GAAP financial measures, such as tangible common equity/tangible assets; efficiency ratio; return on average tangible equity and return on average tangible common equity. Summit believes these financial measures provide information useful to investors in understanding our operational performance and business and performance trends which facilitate comparisons with the performance of others in the financial services industry. Although Summit believes that these non-GAAP financial measures enhance investors' understanding of Summit’s business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP.
Forward-Looking Statements
This press release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Words such as “expects”, “anticipates”, “believes”, “estimates” and other similar expressions or future or conditional verbs such as “will”, “should”, “would” and “could” are intended to identify such forward-looking statements.
Although we believe the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially. Factors that might cause such a difference include: the effect of the COVID-19 pandemic, including the negative impacts and disruptions on the communities we serve, and the domestic and global economy, which may have an adverse effect on our business; current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth; fiscal and monetary policies of the Federal Reserve; future provisions for credit losses on loans and debt securities; changes in nonperforming assets; changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; the successful integration of operations of our acquisitions; changes in banking laws and regulations; changes in tax laws; the impact of technological advances; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; and changes in the national and local economies. We undertake no obligation to revise these statements following the date of this press release.
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Quarterly Performance Summary (unaudited) -- Q1 2023 vs Q1 2022
|
For the Quarter Ended |
Percent |
|||||||||||
|
Dollars in thousands |
03/31/2023 |
03/31/2022 |
Change |
|||||||||
|
Statements of Income |
||||||||||||
|
Interest income |
||||||||||||
|
Loans, including fees |
$ | 45,485 | $ | 30,224 | 50.5 | % | ||||||
|
Securities |
4,819 | 2,623 | 83.7 | % | ||||||||
|
Other |
171 | 46 | 271.7 | % | ||||||||
|
Total interest income |
50,475 | 32,893 | 53.5 | % | ||||||||
|
Interest expense |
||||||||||||
|
Deposits |
14,000 | 1,727 | 710.7 | % | ||||||||
|
Borrowings |
2,286 | 1,612 | 41.8 | % | ||||||||
|
Total interest expense |
16,286 | 3,339 | 387.8 | % | ||||||||
|
Net interest income |
34,189 | 29,554 | 15.7 | % | ||||||||
|
Provision for credit losses |
1,500 | 1,950 | -23.1 | % | ||||||||
|
Net interest income after provision for credit losses |
32,689 | 27,604 | 18.4 | % | ||||||||
|
Noninterest income |
||||||||||||
|
Trust and wealth management fees |
811 | 757 | 7.1 | % | ||||||||
|
Mortgage origination revenue |
171 | 339 | -49.6 | % | ||||||||
|
Service charges on deposit accounts |
1,392 | 1,401 | -0.6 | % | ||||||||
|
Bank card revenue |
1,568 | 1,491 | 5.2 | % | ||||||||
|
Net gains on equity investments |
45 | 372 | -87.9 | % | ||||||||
|
Net realized losses on debt securities |
(59 | ) | (152 | ) | -61.2 | % | ||||||
|
Bank owned life insurance and annuity income |
336 | 283 | 18.7 | % | ||||||||
|
Other income |
122 | 54 | 125.9 | % | ||||||||
|
Total noninterest income |
4,386 | 4,545 | -3.5 | % | ||||||||
|
Noninterest expense |
||||||||||||
|
Salaries and employee benefits |
10,807 | 9,700 | 11.4 | % | ||||||||
|
Net occupancy expense |
1,333 | 1,242 | 7.3 | % | ||||||||
|
Equipment expense |
2,030 | 1,843 | 10.1 | % | ||||||||
|
Professional fees |
376 | 362 | 3.9 | % | ||||||||
|
Advertising and public relations |
170 | 172 | -1.2 | % | ||||||||
|
Amortization of intangibles |
343 | 378 | -9.3 | % | ||||||||
|
FDIC premiums |
330 | 390 | -15.4 | % | ||||||||
|
Bank card expense |
696 | 714 | -2.5 | % | ||||||||
|
Foreclosed properties expense, net of (gains)/losses |
15 | (90 | ) | -116.7 | % | |||||||
|
Acquisition-related expenses |
331 | 29 | 1041.4 | % | ||||||||
|
Other expenses |
2,968 | 2,459 | 20.7 | % | ||||||||
|
Total noninterest expense |
19,399 | 17,199 | 12.8 | % | ||||||||
|
Income before income taxes |
17,676 | 14,950 | 18.2 | % | ||||||||
|
Income tax expense |
3,575 | 3,257 | 9.8 | % | ||||||||
|
Net income |
14,101 | 11,693 | 20.6 | % | ||||||||
|
Preferred stock dividends |
225 | 225 | 0.0 | % | ||||||||
|
Net income applicable to common shares |
$ | 13,876 | $ | 11,468 | 21.0 | % | ||||||
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Quarterly Performance Summary (unaudited) -- Q1 2023 vs Q1 2022
|
For the Quarter Ended |
Percent |
|||||||||||
|
03/31/2023 |
03/31/2022 |
Change |
||||||||||
|
Per Share Data |
||||||||||||
|
Earnings per common share |
||||||||||||
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Basic |
$ | 1.09 | $ | 0.90 | 21.1 | % | ||||||
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Diluted |
$ | 1.08 | $ | 0.90 | 20.0 | % | ||||||
|
Cash dividends per common share |
$ | 0.20 | $ | 0.18 | 11.1 | % | ||||||
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Common stock dividend payout ratio |
18.1 |
% | 19.7 | % | -8.1 | % | ||||||
|
Average common shares outstanding |
||||||||||||
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Basic |
12,783,851 | 12,745,297 | 0.3 | % | ||||||||
|
Diluted |
12,830,102 | 12,801,903 | 0.2 | % | ||||||||
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Common shares outstanding at period end |
12,786,404 | 12,753,094 | 0.3 | % | ||||||||
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Performance Ratios |
||||||||||||
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Return on average equity |
15.55 | % | 14.20 | % | 9.5 | % | ||||||
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Return on average tangible equity (C)(E) |
19.10 | % | 18.02 | % | 6.0 | % | ||||||
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Return on average tangible common equity (D)(E) |
20.10 | % | 18.74 | % | 7.3 | % | ||||||
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Return on average assets |
1.43 | % | 1.30 | % | 10.0 | % | ||||||
|
Net interest margin (A) |
3.83 | % | 3.61 | % | 6.1 | % | ||||||
|
Efficiency ratio (B) |
48.00 | % | 49.44 | % | -2.9 | % | ||||||
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NOTES |
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(A) - Presented on a tax-equivalent basis assuming a federal tax rate of 21%. |
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(B) - Computed on a tax equivalent basis excluding acquisition-related expenses, gains/losses on sales of assets, write-downs of OREO properties to fair value and amortization of intangibles. |
|
(C) - Return on average tangible equity = (Net income + Amortization of intangibles [after-tax]) / (Average shareholders' equity - Average intangible assets). |
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(D) - Return on average tangible common equity = (Net income + Amortization of intangibles [after-tax]) / (Average common shareholders' equity - Average intangible assets). |
| (E) - See Non-GAAP Financial Measures for additional information relating to the calculation of this item. |
|
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) |
|
Five Quarter Performance Summary (unaudited) |
|
For the Quarter Ended |
||||||||||||||||||||
|
Dollars in thousands |
3/31/2023 |
12/31/2022 |
9/30/2022 |
6/30/2022 |
3/31/2022 |
|||||||||||||||
|
Statements of Income |
||||||||||||||||||||
|
Interest income |
||||||||||||||||||||
|
Loans, including fees |
$ | 45,485 | $ | 43,589 | $ | 38,784 | $ | 32,766 | $ | 30,224 | ||||||||||
|
Securities |
4,819 | 4,181 | 3,497 | 2,752 | 2,623 | |||||||||||||||
|
Other |
171 | 70 | 170 | 45 | 46 | |||||||||||||||
|
Total interest income |
50,475 | 47,840 | 42,451 | 35,563 | 32,893 | |||||||||||||||
|
Interest expense |
||||||||||||||||||||
|
Deposits |
14,000 | 10,194 | 6,140 | 2,622 | 1,727 | |||||||||||||||
|
Borrowings |
2,286 | 3,293 | 2,198 | 1,976 | 1,612 | |||||||||||||||
|
Total interest expense |
16,286 | 13,487 | 8,338 | 4,598 | 3,339 | |||||||||||||||
|
Net interest income |
34,189 | 34,353 | 34,113 | 30,965 | 29,554 | |||||||||||||||
|
Provision for credit losses |
1,500 | 1,500 | 1,500 | 2,000 | 1,950 | |||||||||||||||
|
Net interest income after provision for credit losses |
32,689 | 32,853 | 32,613 | 28,965 | 27,604 | |||||||||||||||
|
Noninterest income |
||||||||||||||||||||
|
Trust and wealth management fees |
811 | 750 | 725 | 745 | 757 | |||||||||||||||
|
Mortgage origination revenue |
171 | 286 | 538 | 317 | 339 | |||||||||||||||
|
Service charges on deposit accounts |
1,392 | 1,526 | 1,550 | 1,674 | 1,401 | |||||||||||||||
|
Bank card revenue |
1,568 | 1,513 | 1,639 | 1,618 | 1,491 | |||||||||||||||
|
Net gains/(losses) on equity investments |
45 | 280 | 283 | (669 | ) | 372 | ||||||||||||||
|
Net realized losses on debt securities |
(59 | ) | (24 | ) | (242 | ) | (289 | ) | (152 | ) | ||||||||||
|
Bank owned life insurance and annuity income |
336 | 367 | 229 | 331 | 283 | |||||||||||||||
|
Other income |
122 | 167 | 165 | 129 | 54 | |||||||||||||||
|
Total noninterest income |
4,386 | 4,865 | 4,887 | 3,856 | 4,545 | |||||||||||||||
|
Noninterest expense |
||||||||||||||||||||
|
Salaries and employee benefits |
10,807 | 10,532 | 10,189 | 10,030 | 9,700 | |||||||||||||||
|
Net occupancy expense |
1,333 | 1,328 | 1,301 | 1,258 | 1,242 | |||||||||||||||
|
Equipment expense |
2,030 | 1,769 | 1,851 | 1,791 | 1,843 | |||||||||||||||
|
Professional fees |
376 | 386 | 372 | 507 | 362 | |||||||||||||||
|
Advertising and public relations |
170 | 280 | 276 | 165 | 172 | |||||||||||||||
|
Amortization of intangibles |
343 | 351 | 354 | 355 | 378 | |||||||||||||||
|
FDIC premiums |
330 | 352 | 292 | 190 | 390 | |||||||||||||||
|
Bank card expense |
696 | 679 | 726 | 810 | 714 | |||||||||||||||
|
Foreclosed properties expense, net of (gains)/losses |
15 | 159 | 26 | 141 | (90 | ) | ||||||||||||||
|
Acquisition-related expenses |
331 | 81 | — | 4 | 29 | |||||||||||||||
|
Other expenses |
2,968 | 2,932 | 3,834 | 2,358 | 2,459 | |||||||||||||||
|
Total noninterest expense |
19,399 | 18,849 | 19,221 | 17,609 | 17,199 | |||||||||||||||
|
Income before income taxes |
17,676 | 18,869 | 18,279 | 15,212 | 14,950 | |||||||||||||||
|
Income tax expense |
3,575 | 3,783 | 3,856 | 3,198 | 3,257 | |||||||||||||||
|
Net income |
14,101 | 15,086 | 14,423 | 12,014 | 11,693 | |||||||||||||||
|
Preferred stock dividends |
225 | 225 | 225 | 225 | 225 | |||||||||||||||
|
Net income applicable to common shares |
$ | 13,876 | $ | 14,861 | $ | 14,198 | $ | 11,789 | $ | 11,468 | ||||||||||
|
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) |
|
Five Quarter Performance Summary (unaudited) |
|
For the Quarter Ended |
||||||||||||||||||||
|
3/31/2023 |
12/31/2022 |
9/30/2022 |
6/30/2022 |
3/31/2022 |
||||||||||||||||
|
Per Share Data |
||||||||||||||||||||
|
Earnings per common share |
||||||||||||||||||||
|
Basic |
$ | 1.09 | $ | 1.16 | $ | 1.11 | $ | 0.92 | $ | 0.90 | ||||||||||
|
Diluted |
$ | 1.08 | $ | 1.16 | $ | 1.11 | $ | 0.92 | $ | 0.90 | ||||||||||
|
Cash dividends per common share |
$ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.18 | $ | 0.18 | ||||||||||
|
Common stock dividend payout ratio |
18.1 | % | 16.9 | % | 17.7 | % | 19.1 | % | 19.7 | % | ||||||||||
|
Average common shares outstanding |
||||||||||||||||||||
|
Basic |
12,783,851 | 12,775,703 | 12,766,473 | 12,754,724 | 12,745,297 | |||||||||||||||
|
Diluted |
12,830,102 | 12,837,637 | 12,835,670 | 12,810,174 | 12,801,903 | |||||||||||||||
|
Common shares outstanding at period end |
12,786,404 | 12,783,646 | 12,774,645 | 12,763,422 | 12,753,094 | |||||||||||||||
|
Performance Ratios |
||||||||||||||||||||
|
Return on average equity |
15.55 | % | 17.50 | % | 17.05 | % | 14.48 | % | 14.20 | % | ||||||||||
|
Return on average tangible equity (C)(E) |
19.10 | % | 21.75 | % | 21.33 | % | 18.28 | % | 18.02 | % | ||||||||||
|
Return on average tangible common equity (D)(E) |
20.10 | % | 22.96 | % | 22.20 | % | 19.00 | % | 18.74 | % | ||||||||||
|
Return on average assets |
1.43 | % | 1.54 | % | 1.51 | % | 1.30 | % | 1.30 | % | ||||||||||
|
Net interest margin (A) |
3.83 | % | 3.80 | % | 3.84 | % | 3.66 | % | 3.61 | % | ||||||||||
|
Efficiency ratio (B) |
48.00 | % | 46.40 | % | 47.95 | % | 47.45 | % | 49.44 | % | ||||||||||
|
NOTES |
|
(A) - Presented on a tax-equivalent basis assuming a federal tax rate of 21%. |
|
(B) - Computed on a tax equivalent basis excluding acquisition-related expenses, gains/losses on sales of assets, write-downs of OREO properties to fair value and amortization of intangibles. |
|
(C) - Return on average tangible equity = (Net income + Amortization of intangibles [after-tax]) / (Average shareholders' equity - Average intangible assets). |
|
(D) - Return on average tangible common equity = (Net income + Amortization of intangibles [after-tax]) / (Average common shareholders' equity - Average intangible assets). |
| (E) - See Non-GAAP Financial Measures for additional information relating to the calculation of this item. |
|
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) |
|
Selected Balance Sheet Data (unaudited) |
|
Dollars in thousands, except per share amounts |
3/31/2023 |
12/31/2022 |
9/30/2022 |
6/30/2022 |
3/31/2022 |
|||||||||||||||
|
Assets |
||||||||||||||||||||
|
Cash and due from banks |
$ | 16,488 | $ | 16,469 | $ | 16,141 | $ | 17,921 | $ | 18,404 | ||||||||||
|
Interest bearing deposits other banks |
54,328 | 28,248 | 29,510 | 31,680 | 42,853 | |||||||||||||||
|
Debt securities, available for sale |
431,933 | 405,201 | 383,965 | 368,049 | 374,855 | |||||||||||||||
|
Debt securities, held to maturity |
95,682 | 96,163 | 96,640 | 97,116 | 97,589 | |||||||||||||||
|
Equity investments |
29,867 | 29,494 | 20,314 | 19,905 | 20,574 | |||||||||||||||
|
Other investments |
12,696 | 16,029 | 18,105 | 18,329 | 10,974 | |||||||||||||||
|
Loans, net |
3,059,099 | 3,043,919 | 3,038,377 | 2,941,813 | 2,817,998 | |||||||||||||||
|
Property held for sale |
5,128 | 5,067 | 5,193 | 5,319 | 6,900 | |||||||||||||||
|
Premises and equipment, net |
54,491 | 53,981 | 54,628 | 55,034 | 55,713 | |||||||||||||||
|
Goodwill and other intangible assets |
61,807 | 62,150 | 62,502 | 62,856 | 63,212 | |||||||||||||||
|
Cash surrender value of life insurance policies and annuities |
72,019 | 71,640 | 71,216 | 71,073 | 70,825 | |||||||||||||||
|
Derivative financial instruments |
34,758 | 40,506 | 42,179 | 31,452 | 24,455 | |||||||||||||||
|
Other assets |
49,111 | 47,825 | 48,529 | 42,252 | 39,339 | |||||||||||||||
|
Total assets |
$ | 3,977,407 | $ | 3,916,692 | $ | 3,887,299 | $ | 3,762,799 | $ | 3,643,691 | ||||||||||
|
Liabilities and Shareholders' Equity |
||||||||||||||||||||
|
Deposits |
$ | 3,299,846 | $ | 3,169,879 | $ | 3,108,072 | $ | 2,975,304 | $ | 3,008,063 | ||||||||||
|
Short-term borrowings |
140,150 | 225,999 | 273,148 | 291,447 | 140,146 | |||||||||||||||
|
Long-term borrowings and subordinated debentures, net |
123,660 | 123,543 | 123,427 | 123,311 | 123,260 | |||||||||||||||
|
Other liabilities |
44,205 | 42,741 | 40,978 | 38,846 | 41,756 | |||||||||||||||
|
Total liabilities |
3,607,861 | 3,562,162 | 3,545,625 | 3,428,908 | 3,313,225 | |||||||||||||||
|
Preferred stock and related surplus |
14,920 | 14,920 | 14,920 | 14,920 | 14,920 | |||||||||||||||
|
Common stock and related surplus |
90,939 | 90,696 | 90,345 | 90,008 | 89,675 | |||||||||||||||
|
Retained earnings |
271,712 | 260,393 | 248,084 | 236,438 | 226,944 | |||||||||||||||
|
Accumulated other comprehensive income (loss) |
(8,025 | ) | (11,479 | ) | (11,675 | ) | (7,475 | ) | (1,073 | ) | ||||||||||
|
Total shareholders' equity |
369,546 | 354,530 | 341,674 | 333,891 | 330,466 | |||||||||||||||
|
Total liabilities and shareholders' equity |
$ | 3,977,407 | $ | 3,916,692 | $ | 3,887,299 | $ | 3,762,799 | $ | 3,643,691 | ||||||||||
|
Book value per common share |
$ | 27.73 | $ | 26.57 | $ | 25.58 | $ | 24.99 | $ | 24.74 | ||||||||||
|
Tangible book value per common share (A)(C) |
$ | 22.90 | $ | 21.70 | $ | 20.69 | $ | 20.07 | $ | 19.79 | ||||||||||
|
Tangible common equity to tangible assets (B)(C) |
7.5 | % | 7.2 | % | 6.9 | % | 6.9 | % | 7.0 | % | ||||||||||
|
NOTES |
|
(A) - Tangible book value per share = (Common stock and related surplus plus Retained earnings plus Accumulated other comprehensive income/loss - Intangible assets) / Common shares outstanding. |
|
(B) - Tangible common equity to tangible assets = (Common stock and related surplus plus Retained earnings plus Accumulated other comprehensive income/loss - Intangible assets) / (Total assets - Intangible assets). |
| (C) - See Non-GAAP Financial Measures for additional information relating to the calculaton of this item. |
|
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF) |
|
Loan Composition (unaudited) |
|
Dollars in thousands |
3/31/2023 |
12/31/2022 |
9/30/2022 |
6/30/2022 |
3/31/2022 |
|||||||||||||||
|
Commercial |
$ | 498,268 | $ | 501,844 | $ | 512,771 | $ | 455,202 | $ | 447,482 | ||||||||||
|
Mortgage warehouse lines |
86,240 | 130,390 | 194,740 | 171,399 | 164,895 | |||||||||||||||
|
Commercial real estate |
||||||||||||||||||||
|
Owner occupied |
469,560 | 467,050 | 473,298 | 502,152 | 491,059 | |||||||||||||||
|
Non-owner occupied |
1,036,358 | 1,004,368 | 960,627 | 963,646 | 910,174 | |||||||||||||||
|
Construction and development |
||||||||||||||||||||
|
Land and development |
102,351 | 106,362 | 104,437 | 106,840 | 103,203 | |||||||||||||||
|
Construction |
290,556 | 282,935 | 248,564 | 211,955 | 171,383 | |||||||||||||||
|
Residential real estate |
||||||||||||||||||||
|
Conventional |
395,312 | 386,874 | 382,203 | 377,980 | 375,240 | |||||||||||||||
|
Jumbo |
111,475 | 92,103 | 87,449 | 79,803 | 81,443 | |||||||||||||||
|
Home equity |
70,167 | 71,986 | 72,756 | 71,136 | 70,770 | |||||||||||||||
|
Consumer |
36,531 | 35,372 | 35,116 | 33,816 | 32,095 | |||||||||||||||
|
Other |
3,117 | 3,534 | 3,166 | 2,947 | 2,877 | |||||||||||||||
|
Total loans, net of unearned fees |
3,099,935 | 3,082,818 | 3,075,127 | 2,976,876 | 2,850,621 | |||||||||||||||
|
Less allowance for loan credit losses |
40,836 | 38,899 | 36,750 | 35,063 | 32,623 | |||||||||||||||
|
Loans, net |
$ | 3,059,099 | $ | 3,043,919 | $ | 3,038,377 | $ | 2,941,813 | $ | 2,817,998 | ||||||||||
|
Unfunded loan commitments |
$ | 907,757 | $ | 925,657 | $ | 889,854 | $ | 876,157 | $ | 840,705 | ||||||||||
|
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF) |
|
Deposit Composition (unaudited) |
|
Dollars in thousands |
3/31/2023 |
12/31/2022 |
9/30/2022 |
6/30/2022 |
3/31/2022 |
|||||||||||||||
|
Core deposits |
||||||||||||||||||||
|
Non interest bearing checking |
$ | 552,716 | $ | 553,616 | $ | 619,067 | $ | 600,791 | $ | 629,002 | ||||||||||
|
Interest bearing checking |
1,886,011 | 1,743,299 | 1,475,643 | 1,238,368 | 1,134,964 | |||||||||||||||
|
Savings |
462,631 | 496,751 | 582,922 | 645,099 | 702,069 | |||||||||||||||
|
Time deposits |
278,410 | 294,630 | 338,668 | 386,562 | 427,076 | |||||||||||||||
|
Total core deposits |
3,179,768 | 3,088,296 | 3,016,300 | 2,870,820 | 2,893,111 | |||||||||||||||
|
Brokered deposits |
71,451 | 32,790 | 32,778 | 32,767 | 32,755 | |||||||||||||||
|
Other non-core time deposits |
48,627 | 48,793 | 58,994 | 71,717 | 82,197 | |||||||||||||||
|
Total deposits |
$ | 3,299,846 | $ | 3,169,879 | $ | 3,108,072 | $ | 2,975,304 | $ | 3,008,063 | ||||||||||
|
Estimated uninsured deposits (A) |
$ | 966,175 | $ | 946,188 | $ | 757,038 | $ | 762,466 | $ | 744,686 | ||||||||||
| (A) - Excludes uninsured public funds otherwise secured or collateralized as required by law |
| SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF) |
| Regulatory Capital Ratios (unaudited) |
|
3/31/2023 |
12/31/2022 |
9/30/2022 |
6/30/2022 |
3/31/2022 |
||||||||||||||||
|
Summit Financial Group, Inc. |
||||||||||||||||||||
|
CET1 Risk-based Capital |
8.9 | % | 8.6 | % | 8.2 | % | 8.2 | % | 8.3 | % | ||||||||||
|
Tier 1 Risk-based Capital |
9.8 | % | 9.5 | % | 9.2 | % | 9.2 | % | 9.3 | % | ||||||||||
|
Total Risk Based Capital |
14.0 | % | 13.5 | % | 13.1 | % | 13.3 | % | 13.5 | % | ||||||||||
|
Tier 1 Leverage |
8.7 | % | 8.5 | % | 8.4 | % | 8.4 | % | 8.4 | % | ||||||||||
|
Summit Community Bank, Inc. |
||||||||||||||||||||
|
CET1 Risk-based Capital |
11.9 | % | 11.6 | % | 11.3 | % | 11.4 | % | 11.6 | % | ||||||||||
|
Tier 1 Risk-based Capital |
11.9 | % | 11.6 | % | 11.3 | % | 11.4 | % | 11.6 | % | ||||||||||
|
Total Risk Based Capital |
13.1 | % | 12.6 | % | 12.2 | % | 12.4 | % | 12.5 | % | ||||||||||
|
Tier 1 Leverage |
10.6 | % | 10.4 | % | 10.3 | % | 10.4 | % | 10.5 | % | ||||||||||
|
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) |
|
Asset Quality Information (unaudited) |
|
For the Quarter Ended |
||||||||||||||||||||
|
Dollars in thousands |
3/31/2023 |
12/31/2022 |
9/30/2022 |
6/30/2022 |
3/31/2022 |
|||||||||||||||
|
Gross loan charge-offs |
$ | 164 | $ | 250 | $ | 265 | $ | 306 | $ | 618 | ||||||||||
|
Gross loan recoveries |
(227 | ) | (249 | ) | (257 | ) | (147 | ) | (109 | ) | ||||||||||
|
Net loan charge-offs |
$ | (63 | ) | $ | 1 | $ | 8 | $ | 159 | $ | 509 | |||||||||
|
Net loan charge-offs to average loans (annualized) |
-0.01 | % | 0.00 | % | 0.00 | % | 0.02 | % | 0.07 | % | ||||||||||
|
Allowance for loan credit losses |
$ | 40,836 | $ | 38,899 | $ | 36,750 | $ | 35,063 | $ | 32,623 | ||||||||||
|
Allowance for loan credit losses as a percentage of period end loans |
1.32 | % | 1.26 | % | 1.19 | % | 1.18 | % | 1.14 | % | ||||||||||
|
Allowance for credit losses on unfunded loan commitments ("ULC'") |
$ | 6,572 | $ | 6,947 | $ | 7,597 | $ | 7,792 | $ | 8,392 | ||||||||||
|
Allowance for credit losses on ULC as a percentage of period end ULC |
0.72 | % | 0.75 | % | 0.85 | % | 0.89 | % | 1.00 | % | ||||||||||
|
Nonperforming assets: |
||||||||||||||||||||
|
Nonperforming loans |
||||||||||||||||||||
|
Commercial |
$ | 402 | $ | 93 | $ | 347 | $ | 345 | $ | 433 | ||||||||||
|
Commercial real estate |
1,700 | 1,750 | 1,860 | 2,703 | 4,765 | |||||||||||||||
|
Residential construction and development |
813 | 851 | 902 | 1,053 | 968 | |||||||||||||||
|
Residential real estate |
4,322 | 5,117 | 6,083 | 6,799 | 5,549 | |||||||||||||||
|
Consumer |
65 | 12 | 8 | 37 | 20 | |||||||||||||||
|
Total nonperforming loans |
7,302 | 7,823 | 9,200 | 10,937 | 11,735 | |||||||||||||||
|
Foreclosed properties |
||||||||||||||||||||
|
Commercial real estate |
297 | 297 | 297 | 440 | 1,251 | |||||||||||||||
|
Commercial construction and development |
2,187 | 2,187 | 2,332 | 2,332 | 2,332 | |||||||||||||||
|
Residential construction and development |
2,293 | 2,293 | 2,293 | 2,293 | 3,018 | |||||||||||||||
|
Residential real estate |
351 | 290 | 271 | 254 | 299 | |||||||||||||||
|
Total foreclosed properties |
5,128 | 5,067 | 5,193 | 5,319 | 6,900 | |||||||||||||||
|
Other repossessed assets |
— | — | — | — | — | |||||||||||||||
|
Total nonperforming assets |
$ | 12,430 | $ | 12,890 | $ | 14,393 | $ | 16,256 | $ | 18,635 | ||||||||||
|
Nonperforming loans to period end loans |
0.24 | % | 0.25 | % | 0.30 | % | 0.37 | % | 0.41 | % | ||||||||||
|
Nonperforming assets to period end assets |
0.31 | % | 0.33 | % | 0.37 | % | 0.43 | % | 0.51 | % | ||||||||||
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) |
|
Loans Past Due 30-89 Days (unaudited) |
|
Dollars in thousands |
3/31/2023 |
12/31/2022 |
9/30/2022 |
6/30/2022 |
3/31/2022 |
|||||||||||||||
|
Commercial |
$ | 463 | $ | 3,168 | $ | 1,329 | $ | 989 | $ | 388 | ||||||||||
|
Commercial real estate |
1,000 | 641 | 1,550 | 4,084 | 1,446 | |||||||||||||||
|
Construction and development |
3,459 | 317 | 236 | 821 | 645 | |||||||||||||||
|
Residential real estate |
2,311 | 6,231 | 2,824 | 3,452 | 3,407 | |||||||||||||||
|
Consumer |
252 | 253 | 216 | 196 | 69 | |||||||||||||||
|
Other |
13 | 22 | 4 | 14 | 28 | |||||||||||||||
|
Total |
$ | 7,498 | $ | 10,632 | $ | 6,159 | $ | 9,556 | $ | 5,983 | ||||||||||
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Average Balance Sheet, Interest Earnings & Expenses and Average Rates
Q1 2023 vs Q4 2022 vs Q1 2022 (unaudited)
|
Q1 2023 |
Q4 2022 |
Q1 2022 |
||||||||||||||||||||||||||||||||||
|
Average |
Earnings/ |
Yield/ |
Average |
Earnings / |
Yield / |
Average |
Earnings / |
Yield / |
||||||||||||||||||||||||||||
|
Dollars in thousands |
Balances |
Expense |
Rate |
Balances |
Expense |
Rate |
Balances |
Expense |
Rate |
|||||||||||||||||||||||||||
|
ASSETS |
||||||||||||||||||||||||||||||||||||
|
Interest earning assets |
||||||||||||||||||||||||||||||||||||
|
Loans, net of unearned interest (1) |
||||||||||||||||||||||||||||||||||||
|
Taxable |
$ | 3,087,068 | $ | 45,421 | 5.97 | % | $ | 3,100,595 | $ | 43,549 | 5.57 | % | $ | 2,771,842 | $ | 30,178 | 4.42 | % | ||||||||||||||||||
|
Tax-exempt (2) |
6,086 | 81 | 5.40 | % | 4,525 | 52 | 4.56 | % | 5,369 | 58 | 4.38 | % | ||||||||||||||||||||||||
|
Securities |
||||||||||||||||||||||||||||||||||||
|
Taxable |
314,004 | 3,412 | 4.41 | % | 280,114 | 2,747 | 3.89 | % | 320,170 | 1,657 | 2.10 | % | ||||||||||||||||||||||||
|
Tax-exempt (2) |
216,430 | 1,781 | 3.34 | % | 219,245 | 1,813 | 3.28 | % | 180,473 | 1,223 | 2.75 | % | ||||||||||||||||||||||||
|
Interest bearing deposits other banks and Federal funds sold |
34,330 | 171 | 2.02 | % | 25,785 | 70 | 1.08 | % | 72,883 | 46 | 0.26 | % | ||||||||||||||||||||||||
|
Total interest earning assets |
3,657,918 | 50,866 | 5.64 | % | 3,630,264 | 48,231 | 5.27 | % | 3,350,737 | 33,162 | 4.01 | % | ||||||||||||||||||||||||
|
Noninterest earning assets |
||||||||||||||||||||||||||||||||||||
|
Cash & due from banks |
17,387 | 16,892 | 19,226 | |||||||||||||||||||||||||||||||||
|
Premises & equipment |
54,112 | 54,431 | 56,043 | |||||||||||||||||||||||||||||||||
|
Intangible assets |
62,024 | 62,336 | 63,429 | |||||||||||||||||||||||||||||||||
|
Other assets |
190,533 | 191,926 | 142,719 | |||||||||||||||||||||||||||||||||
|
Allowance for loan credit losses |
(39,507 | ) | (37,377 | ) | (32,462 | ) | ||||||||||||||||||||||||||||||
|
Total assets |
$ | 3,942,467 | $ | 3,918,472 | $ | 3,599,692 | ||||||||||||||||||||||||||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||||||||||||||||||||||||||||||
|
Liabilities |
||||||||||||||||||||||||||||||||||||
|
Interest bearing liabilities |
||||||||||||||||||||||||||||||||||||
|
Interest bearing demand deposits |
$ | 1,819,505 | $ | 10,796 | 2.41 | % | $ | 1,615,275 | $ | 7,848 | 1.93 | % | $ | 1,135,068 | $ | 465 | 0.17 | % | ||||||||||||||||||
|
Savings deposits |
480,207 | 1,917 | 1.62 | % | 529,039 | 1,651 | 1.24 | % | 700,115 | 573 | 0.33 | % | ||||||||||||||||||||||||
|
Time deposits |
389,252 | 1,287 | 1.34 | % | 399,101 | 695 | 0.69 | % | 542,360 | 689 | 0.52 | % | ||||||||||||||||||||||||
|
Short-term borrowings |
166,365 | 824 | 2.01 | % | 276,823 | 1,868 | 2.68 | % | 140,230 | 373 | 1.08 | % | ||||||||||||||||||||||||
|
Long-term borrowings and subordinated debentures |
123,599 | 1,462 | 4.80 | % | 123,488 | 1,425 | 4.58 | % | 123,203 | 1,239 | 4.08 | % | ||||||||||||||||||||||||
|
Total interest bearing liabilities |
2,978,928 | 16,286 | 2.22 | % | 2,943,726 | 13,487 | 1.82 | % | 2,640,976 | 3,339 | 0.51 | % | ||||||||||||||||||||||||
|
Noninterest bearing liabilities |
||||||||||||||||||||||||||||||||||||
|
Demand deposits |
557,209 | 586,617 | 586,903 | |||||||||||||||||||||||||||||||||
|
Other liabilities |
43,508 | 43,378 | 42,493 | |||||||||||||||||||||||||||||||||
|
Total liabilities |
3,579,645 | 3,573,721 | 3,270,372 | |||||||||||||||||||||||||||||||||
|
Shareholders' equity - preferred |
14,920 | 14,920 | 14,921 | |||||||||||||||||||||||||||||||||
|
Shareholders' equity - common |
347,902 | 329,831 | 314,399 | |||||||||||||||||||||||||||||||||
|
Total liabilities and shareholders' equity |
$ | 3,942,467 | $ | 3,918,472 | $ | 3,599,692 | ||||||||||||||||||||||||||||||
|
NET INTEREST EARNINGS |
$ | 34,580 | $ | 34,744 | $ | 29,823 | ||||||||||||||||||||||||||||||
|
NET INTEREST MARGIN |
3.83 | % | 3.80 | % | 3.61 | % | ||||||||||||||||||||||||||||||
|
(1) For purposes of this table, nonaccrual loans are included in average loan balances. |
|
(2) Interest income on tax-exempt securities and loans has been adjusted assuming a Federal tax rate of 21% for all periods presented. The tax equivalent adjustment resulted in an increase in interest income of $391,000, $391,000 and $269,000 for Q1 2023, Q4 2022 and Q1 2022, respectively. |