Dogwood State Bank Reports Record Earnings in First Quarter of 2025
PR Newswire
RALEIGH, N.C., April 17, 2025
RALEIGH, N.C., April 17, 2025 /PRNewswire/ -- Dogwood State Bank (OTC: DSBX) ("Dogwood" or the "Bank") announced today its financial results for the three months ended March 31, 2025.
First Quarter 2025 Highlights
-- Net income rose to $7.4 million ($0.39 per diluted share) in Q1 2025,
compared to $6.2 million ($0.32 per diluted share) in Q4 2024 and $1.8
million ($0.12 per diluted share) in Q1 2024.
-- Adjusted net income (non-GAAP) rose to $7.5 million ($0.39 per diluted
share) in Q1 2025, compared to $6.6 million ($0.35 per diluted share) in
Q4 2024 and $2.6 million ($0.17 per diluted share) in Q1 2024.
-- Return on average assets increased to 1.34% in Q1 2025, compared to 1.13%
in Q4 2024 and 0.53% in Q1 2024.
-- Adjusted return on average assets (non-GAAP) increased to 1.36% in Q1
2025, compared to 1.22% in Q4 2024 and 0.74% in Q1 2024.
-- Net interest margin expanded to 4.20% in Q1 2025, compared to 4.13% in Q4
2024 and 3.41% in Q1 2024.
-- Efficiency ratio improved to 59.7% in Q1 2025, compared to 63.5% in Q4
2024 and 76.4% in Q1 2024.
-- Tangible book value per share grew to $11.36 at March 31, 2025, which was
an increase of $0.45 per share since December 31, 2024 and an increase of
$0.55 per share since March 31, 2024.
"I am extremely proud of our operating metrics this quarter as we continue to achieve record results," commented Steve Jones, Chief Executive Officer. "Our strong earnings performance reflects solid business fundamentals and disciplined execution. This success is a testament to the dedication and expertise of our team whose continued efforts are driving sustainable value for our shareholders."
Q1 2025 Earnings Performance vs. Q1 2024
Dogwood reported net income in Q1 2025 of $7.4 million, or $0.39 per diluted share, compared to $1.8 million, or $0.12 per diluted share, in Q1 2024. Current quarter earnings benefited from an expanded net interest margin, higher SBA lending income, and the acquisition of Community First Bancorporation ("Community First") in Q3 2024.
Adjusted net income (non-GAAP) in Q1 2025, which excludes the impact of merger & acquisition expenses, increased to $7.5 million, or $0.39 per diluted share, from $2.6 million, or $0.17 per diluted share, in Q1 2024. Adjusted pre-tax, pre-provision net revenue (non-GAAP) in Q1 2025 was $10.8 million, which was an increase from $4.3 million in Q1 2024.
Net Interest Income
Net interest income was $21.6 million in Q1 2025, an increase from $11.3 million in Q1 2024. 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 $2.09 billion in Q1 2025 from $1.34 billion in Q1 2024. Average loans increased by $706.6 million. Average investment securities balances increased by $50.6 million.
Net interest margin expanded to 4.20% in Q1 2025 from 3.41% in Q1 2024. Lower cost of funds and 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 Q1 2025, an increase from $921 thousand in Q1 2024. The allowance for credit losses to total loans was 1.10% as of Q1 2025, compared to 1.08% as of Q4 2024 and 1.07% Q1 2024.
Nonperforming loans were 0.41% of total loans as of Q1 2025, compared to 0.33% as of Q4 2024, and 0.18% as of Q1 2024. Annualized net charge-offs were 0.11% of average loans in Q1 2025, compared to 0.13% in Q4 2024 and 0.10% in Q1 2024. The majority of charge offs recognized in Q1 2025 were related to unguaranteed portions of U.S. Small Business Administration ("SBA") loans.
Non-Interest Income
Non-interest income was $4.8 million in Q1 2025, an increase from $2.9 million in Q1 2024. This increase was primarily due to $994 thousand of growth in SBA lending income as well as $615 thousand of growth in deposit service charges and debit card income.
SBA lending income rose due to a combination of higher balances of guaranteed loans sold in the secondary market, higher premiums on sales of guaranteed loans sold, and higher servicing fee income. The weighted average net premium on SBA loans sold in Q1 2025 was 9.25%, an increase from 8.81% in Q1 2024. Guaranteed balances of SBA loans sold totaled $33.6 million in Q1 2025, which was an increase from $20.8 million in Q1 2024.
Deposit service charges and debit card income increased by $615 thousand, which was primarily due to the Community First acquisition.
Non-Interest Expense
Non-interest expense was $15.8 million in Q1 2025, an increase from $10.8 million in Q1 2024. This increase was primarily due to a $2.8 million increase in compensation and benefits expense, which was partially related to higher headcount from the Community First acquisition as well as other investments that have been made in human capital across the Bank to support organic growth. Increases in expense items such as occupancy and equipment (+$622 thousand), software (+$253 thousand), data processing (+$440 thousand), and FDIC insurance (+$176 thousand) were primarily due to the Community First acquisition. Further, amortization of the Community First core deposit intangible, which was recognized at acquisition, added $583 thousand to expense in the quarter.
The increase in expenses was partially offset by a decrease of $830 thousand in merger & acquisition expenses related to the Community First acquisition.
Income Taxes
Dogwood incurred tax expense of $2.2 million in Q1 2025, an increase from $588 thousand in Q1 2024. The effective tax benefit rate was 22.7% in Q1 2025, which was comparable to the effective tax rate of 22.8% in Q1 2024.
Q1 2025 Earnings Performance vs. Q4 2024
Dogwood reported net income in Q1 2025 of $7.4 million, or $0.39 per diluted share, compared to $6.2 million, or $0.32 per diluted share, in Q4 2024. Current quarter earnings benefited from an expanded net interest margin and higher SBA lending income.
Adjusted net income (non-GAAP) in Q1 2025, which excludes the impact of merger & acquisition expenses, increased to $7.5 million, or $0.39 per diluted share, from $6.6 million, or $0.35 per diluted share, in Q4 2024. Adjusted pre-tax, pre-provision net revenue (non-GAAP) in Q1 2025 was $10.8 million, which was an increase from $9.7 million in Q4 2024.
Net Interest Income
Net interest income was $21.6 million in Q1 2025, an increase from $21.1 million in Q4 2024. The increase was due to growth in interest-earning assets and an expansion in net interest margin.
Total average interest-earning assets increased to $2.09 billion in Q1 2025 from $2.04 billion in Q4 2024. Average loans increased by $59.9 million. Average investment securities balances increased by $11.6 million.
Net interest margin expanded to 4.20% in Q1 2025 from 4.13% in Q4 2024. The primary driver of the improved net interest margin was a drop in cost of funds, which decreased from 2.50% in Q4 2024 to 2.42% in Q1 2025.
Provision for Credit Losses and Asset Quality
Provision for credit losses was $1.1 million in Q1 2025, which was flat compared to Q4 2024. The allowance for credit losses to total loans was 1.10% as of Q1 2025, compared to 1.08% as of Q4 2024.
Nonperforming loans were 0.41% of total loans as of Q1 2025, compared to 0.33% as of Q4 2024. Annualized net charge-offs were 0.11% of average loans in Q1 2025, compared to 0.13% in Q4 2024. The majority of charge offs recognized in Q1 2025 were related to unguaranteed portions of SBA loans.
Non-Interest Income
Non-interest income was $4.8 million in Q1 2025, an increase from $3.7 million in Q4 2024. This increase was primarily due to $972 thousand of growth in SBA lending income. SBA lending income rose due to a combination of higher balances of guaranteed loans sold in the secondary market, higher premiums on sales of guaranteed loans sold, and higher servicing fee income. The weighted average net premium on SBA loans sold in Q1 2025 was 9.25%, an increase from 8.95% in Q4 2024. Guaranteed balances of SBA loans sold totaled $33.6 million in Q1 2025, which was an increase from $23.2 million in Q4 2024.
Non-Interest Expense
Non-interest expense was $15.8 million in Q1 2025, which was flat compared to Q4 2024. Occupancy and equipment expense was $175 thousand higher partially due to the recent openings of Dogwood's new Greenville, SC and Charleston, SC offices. Other non-interest expenses were also $282 thousand higher due to a variety of items. The increase in expenses was offset by a decrease of $467 thousand in merger & acquisition expenses related to the Community First acquisition.
Income Taxes
Dogwood incurred tax expense of $2.2 million in Q1 2025, an increase from $1.8 million in Q4 2024. The effective tax benefit rate was 22.7% in Q1 2025, which was flat compared to the effective tax rate in Q4 2024.
About Dogwood State Bank
Dogwood State Bank is a state-chartered community bank headquartered in Raleigh, North Carolina, with approximately $2.29 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 Bank
Income Statements
Quarter Ended
----------------------------------------------------------------------------------------
(Dollars in thousands, Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
except per share data) 2025 2024 2024 2024 2024
-------------------------- ---------------- ---------------- ---------------- ---------------- ----------------
Net interest income $ 21,613 $ 21,129 $ 18,157 $ 12,521 $ 11,312
Provision for credit
losses 1,118 1,116 5,857 2,017 921
Net interest income
after provision 20,495 20,013 12,300 10,504 10,391
---------------- ---------------- ---------------- ---------------- ----------------
Non-interest income
SBA lending 3,191 2,219 2,801 2,717 2,197
Service charges and debit
card income 966 954 811 340 351
Bank-owned life insurance 349 346 301 219 211
Securities gains
(losses), net 37 60 (8) (6) 6
Other 235 160 293 161 85
Total non-interest
income 4,778 3,739 4,198 3,431 2,850
---------------- ---------------- ---------------- ---------------- ----------------
Non-interest expense
Compensation and benefits 9,329 9,389 8,598 6,683 6,506
Occupancy and equipment 1,341 1,166 1,025 707 719
Software 599 561 497 344 346
Loan related costs 579 570 182 314 290
Data processing 701 780 648 315 261
Professional fees 223 157 208 235 225
FDIC insurance 416 390 287 204 240
Merger and acquisition
expenses 128 595 9,139 562 958
Amortization of other
intangible assets 583 599 408 4 11
Other 1,854 1,572 1,731 1,102 1,259
Total non-interest
expense 15,753 15,779 22,723 10,470 10,815
---------------- ---------------- ---------------- ---------------- ----------------
Net income (loss) before
income taxes 9,520 7,973 (6,225) 3,465 2,426
Income tax expense
(benefit) 2,161 1,812 (1,445) 811 588
Net income (loss) $ 7,359 $ 6,161 $ (4,780) $ 2,654 $ 1,838
================ ================ ================ ================ ================
Pre-Tax, Pre-Provision Net
Revenue (PPNR)(1) $ 10,638 $ 9,089 $ (368) $ 5,482 $ 3,347
Adjusted PPNR(1) 10,766 9,684 8,771 6,044 4,305
Per Share Data:
Earnings per share (EPS)
- basic $ 0.40 $ 0.33 $ (0.28) $ 0.18 $ 0.13
Adjusted EPS - basic(1) 0.40 0.36 0.37 0.21 0.18
Earnings per share -
diluted 0.39 0.32 (0.27) 0.17 0.12
Adjusted EPS - diluted(1) 0.39 0.35 0.36 0.20 0.17
Performance Ratios:
Return on average assets
(ROA) 1.34 % 1.13 % -0.97 % 0.71 % 0.53 %
Adjusted ROA(1) 1.36 % 1.22 % 1.30 % 0.83 % 0.74 %
Return on average equity
$(ROE)$ 12.67 % 10.73 % -9.07 % 6.16 % 4.44 %
Adjusted ROE(1) 12.84 % 11.53 % 12.09 % 7.16 % 6.22 %
Return on tangible common
equity (ROTCE)(1) 14.03 % 11.96 % -9.93 % 6.42 % 4.63 %
Adjusted ROTCE(1) 14.22 % 12.85 % 13.24 % 7.46 % 6.50 %
Net interest margin 4.20 % 4.13 % 3.93 % 3.53 % 3.41 %
Efficiency ratio 59.69 % 63.45 % 101.65 % 65.63 % 76.37 %
Adjusted efficiency
ratio(1) 59.21 % 61.06 % 60.76 % 62.11 % 69.60 %
Dogwood State Bank
Balance Sheets
Ending Balance
-------------------------------------------------------------------------------------------------------
(In thousands, except Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
per share data) 2025 2024 2024 2024 2024
----------------------- ------------------- ------------------- ------------------- ------------------- -------------------
Assets
Cash and due from banks $ 7,309 $ 10,582 $ 7,622 $ 2,514 $ 2,353
Interest-earning
deposits with banks 112,755 75,612 146,732 59,073 91,365
Total cash and cash
equivalents 120,064 86,194 154,354 61,587 93,718
------------------- ------------------- ------------------- ------------------- -------------------
Investment securities
available for sale 118,890 99,411 95,290 58,989 55,984
Investment securities
held to maturity 71,044 71,952 73,144 74,404 76,119
Marketable equity
securities 432 395 335 329 336
Total investment
securities 190,366 171,758 168,769 133,722 132,439
------------------- ------------------- ------------------- ------------------- -------------------
Loans held for sale 2,438 6,733 7,924 11,030 8,146
Loans 1,855,716 1,819,796 1,757,828 1,236,722 1,148,899
Less allowance for
credit losses (20,491) (19,698) (19,143) (13,349) (12,344)
------------------- ------------------- ------------------- ------------------- -------------------
Loans, net 1,835,225 1,800,098 1,738,685 1,223,373 1,136,555
------------------- ------------------- ------------------- ------------------- -------------------
Bank-owned life
insurance 45,438 45,089 44,743 27,888 27,669
Premises and equipment,
net 36,572 37,180 35,378 19,713 18,838
SBA servicing asset 5,387 4,982 5,026 4,568 4,373
Goodwill 11,688 11,771 11,771 7,016 7,016
Other intangible
assets, net 10,791 11,374 11,972 - 4
Other assets 35,934 35,991 36,274 21,854 19,750
Total assets $ 2,293,903 $ 2,211,170 $ 2,214,896 $ 1,510,751 $ 1,448,508
=================== =================== =================== =================== ===================
Liabilities and
Shareholders' Equity
Deposits:
Noninterest-bearing $ 463,088 $ 474,458 $ 483,908 $ 379,465 $ 302,705
Interest-bearing 1,420,785 1,334,937 1,357,439 872,430 913,914
Total deposits 1,883,873 1,809,395 1,841,347 1,251,895 1,216,619
------------------- ------------------- ------------------- ------------------- -------------------
FHLB advances 130,141 130,164 101,686 60,000 40,000
Subordinated debt 9,788 9,708 9,627 - -
Lease obligations 12,017 12,258 10,491 10,726 10,959
Other liabilities 19,596 19,456 26,503 13,162 11,459
------------------- ------------------- ------------------- ------------------- -------------------
Total liabilities 2,055,415 1,980,981 1,989,654 1,335,783 1,279,037
------------------- ------------------- ------------------- ------------------- -------------------
Shareholders' equity
Common stock ($1 par
value) 19,013 18,976 18,980 15,541 15,020
Additional paid-in
capital 188,421 188,175 187,981 137,431 135,077
Retained earnings 35,638 28,280 22,118 26,897 24,244
Accumulated other
comprehensive loss (4,584) (5,242) (3,837) (4,901) (4,870)
Total shareholders'
equity 238,488 230,189 225,242 174,968 169,471
------------------- ------------------- ------------------- ------------------- -------------------
Total liabilities and
shareholders'
equity $ 2,293,903 $ 2,211,170 $ 2,214,896 $ 1,510,751 $ 1,448,508
=================== =================== =================== =================== ===================
Per Share Information:
Shares outstanding 19,013 18,976 18,980 15,541 15,020
Book value per share $ 12.54 $ 12.13 $ 11.87 $ 11.26 $ 11.28
Tangible book value
per share(1) $ 11.36 $ 10.91 $ 10.62 $ 10.81 $ 10.82
Capital Ratios:
Tier 1 leverage 9.95 % 9.84 % 10.58 % 12.14 % 11.75 %
Common equity Tier 1
capital 11.14 % 10.97 % 10.70 % 12.64 % 13.12 %
Tier 1 risk-based
capital 11.14 % 10.97 % 10.70 % 12.64 % 13.12 %
Total risk-based
capital 12.81 % 12.63 % 12.34 % 13.81 % 14.29 %
Tangible common
equity(1) 9.51 % 9.46 % 9.20 % 11.17 % 11.27 %
(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 Bank
Asset Quality Measures
Quarter Ended
------------------------------------------------------------------------------
Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Dollars in thousands) 2025 2024 2024 2024 2024
--------------------------- -------------- -------------- -------------- -------------- --------------
Nonperforming Assets:
Non-accrual loans $ 7,635 $ 5,582 $ 3,234 $ 3,234 $ 2,069
Loans 90 days or more past
due and accruing - 338 - - -
Other real estate owned 104 104 104 104 -
-------------- -------------- -------------- -------------- --------------
Total nonperforming
assets $ 7,739 $ 6,024 $ 3,338 $ 3,338 $ 2,069
-------------- -------------- -------------- -------------- --------------
Asset Quality Ratios:
Nonperforming loans/loans 0.41 % 0.33 % 0.18 % 0.26 % 0.18 %
Nonperforming assets/total
assets 0.34 % 0.27 % 0.15 % 0.22 % 0.14 %
Nonperforming assets/loans
and other real estate
owned 0.42 % 0.33 % 0.19 % 0.27 % 0.18 %
Loans 30 days or more past
due/loans (excludes
non-accruals) 0.77 % 0.67 % 0.29 % 0.21 % 0.41 %
Allowance for Credit Losses
$(ACL.AU)$:
ACL on Loans:
Balance, beginning of
period $ 19,698 $ 19,143 $ 13,349 $ 12,344 $ 11,943
Reclass of Day 1 ACL from
fair value discount on
acquired PCD loans - - 658 - -
Loans charged off (632) (614) (738) (987) (288)
Recoveries of loans
previously charged off 151 29 79 11 9
-------------- -------------- -------------- -------------- --------------
Net loans charged off (481) $(585.SI)$ (659) (976) (279)
Provision for credit
losses 1,274 1,140 5,795 1,981 680
Balance, end of period $ 20,491 $ 19,698 $ 19,143 $ 13,349 $ 12,344
-------------- -------------- -------------- -------------- --------------
ACL on Off-Balance Sheet
Credit Exposures:
Balance, beginning of
period $ 2,571 $ 2,595 $ 2,336 $ 2,300 $ 2,059
Reserve on acquired
unfunded loan
commitments - - 197 - -
Provision for credit
losses (156) (24) 62 36 241
Balance, end of period $ 2,415 $ 2,571 $ 2,595 $ 2,336 $ 2,300
-------------- -------------- -------------- -------------- --------------
Allowance for Credit Losses
Ratios:
Allowance for credit
losses/loans 1.10 % 1.08 % 1.09 % 1.08 % 1.07 %
Allowance for credit
losses/nonperforming
loans 268.38 % 332.74 % 591.93 % 412.77 % 596.62 %
Net charge-offs/average
loans (annualized) 0.11 % 0.13 % 0.17 % 0.33 % 0.10 %
Dogwood State Bank
Net Interest Margin
Analysis
Quarter Ended
----------------------------------------------------------------------------------------------------------------------
March 31, 2025 December 31, 2024 March 31, 2024
-------------------------------------- -------------------------------------- --------------------------------------
Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
(Dollars in thousands) Balance Expense Rate Balance Expense Rate Balance Expense Rate
-------------------------- --------------- ------------- ------ --------------- ------------- ------ --------------- ------------- ------
Interest-Earning Assets:
Loans $ 1,832,242 $ 30,837 6.83 % $ 1,772,350 $ 30,524 6.85 % $ 1,125,595 $ 18,116 6.47 %
Investment securities 181,864 1,783 3.98 % 170,307 1,635 3.82 % 131,250 1,029 3.15 %
Interest-earning deposits
with banks 74,364 706 3.85 % 93,153 1,005 4.29 % 78,807 975 4.98 %
------ ------ ------
Total interest-earning
assets 2,088,470 33,326 6.47 % 2,035,810 33,164 6.48 % 1,335,652 20,120 6.06 %
Non interest-earning
assets 131,933 129,999 66,568
Total assets $ 2,220,403 $ 2,165,809 $ 1,402,220
=============== =============== ===============
Interest-Bearing
Liabilities:
Interest-bearing demand $ 148,704 $ 332 0.91 % $ 175,373 $ 468 1.06 % $ 124,309 $ 293 0.95 %
Savings and money market 749,088 5,180 2.80 % 759,932 6,006 3.14 % 601,319 6,110 4.09 %
Time 486,447 4,905 4.09 % 395,409 4,489 4.52 % 170,964 1,967 4.63 %
--------------- ------------- ------ --------------- ------------- ------ --------------- ------------- ------
Total interest-bearing
deposits 1,384,239 10,417 3.05 % 1,330,714 10,963 3.28 % 896,592 8,370 3.75 %
FHLB advances 94,934 1,024 4.37 % 68,177 797 4.65 % 27,253 368 5.43 %
Subordinated debt 9,735 209 8.71 % 9,659 209 0.00 % - - 0.00 %
Lease obligations 12,157 63 2.10 % 10,404 66 2.52 % 11,086 70 2.54 %
------ ------ ------
Total interest-bearing
liabilities 1,501,065 11,713 3.16 % 1,418,954 12,035 3.37 % 934,931 8,808 3.79 %
Non-interest bearing
deposits 463,954 496,016 288,518
Other liabilities 19,807 22,497 12,237
Shareholders' equity 235,577 228,342 166,534
Total liabilities and
shareholders' equity $ 2,220,403 $ 2,165,809 $ 1,402,220
=============== =============== ===============
Net interest income and
interest rate spread $ 21,613 3.31 % $ 21,129 3.11 % $ 11,314 2.27 %
============= ------ ============= ------ ============= ------
Net interest margin 4.20 % 4.13 % 3.41 %
====== ====== ======
Cost of funds 2.42 % 2.50 % 2.90 %
Cost of deposits 2.29 % 2.39 % 2.84 %
Dogwood State Bank
Non-GAAP
Reconciliation
Quarter Ended
-------------------------------------------------------------------------------------------------------
(In thousands,
except per share Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
data) 2025 2024 2024 2024 2024
------------------ ------------------- ------------------- ------------------- ------------------- -------------------
Net income and
EPS:
Net income (loss)
(GAAP) $ 7,359 $ 6,161 $ (4,780) $ 2,654 $ 1,838
Adjust for
provision on
acquired
non-PCD loans,
net of tax - 4,111 - -
Adjust for
merger and
acquisition
expenses, net
of tax 99 458 7,039 433 738
Adjusted net
income
(non-GAAP) $ 7,458 $ 6,619 $ 6,369 $ 3,087 $ 2,576
=================== =================== =================== =================== ===================
Weighted average
common shares
outstanding
Basic 18,502 18,488 17,301 14,905 14,377
Diluted 18,989 18,978 17,810 15,480 15,075
EPS (GAAP)
Basic $ 0.40 $ 0.33 $ (0.28) $ 0.18 $ 0.13
Diluted 0.39 0.32 (0.27) 0.17 0.12
Adjusted EPS
(non-GAAP)
Basic $ 0.40 $ 0.36 $ 0.37 $ 0.21 $ 0.18
Diluted 0.39 0.35 0.36 0.20 0.17
PPNR:
Net income (loss)
(GAAP) $ 7,359 $ 6,161 $ (4,780) $ 2,654 $ 1,838
Add:
Provision for
credit losses 1,118 1,116 5,857 2,017 921
Income tax
expense
(benefit) 2,161 1,812 (1,445) 811 588
------------------- ------------------- ------------------- ------------------- -------------------
PPNR (non-GAAP) 10,638 9,089 (368) 5,482 3,347
Add: merger and
acquisition
expenses 128 595 9,139 562 958
Adjusted PPNR
(non-GAAP) $ 10,766 $ 9,684 $ 8,771 $ 6,044 $ 4,305
=================== =================== =================== =================== ===================
ROA:
Net income (loss)
(GAAP) $ 7,359 $ 6,161 $ (4,780) $ 2,654 $ 1,838
Adjusted net
income
(non-GAAP) 7,458 6,619 6,369 3,087 2,576
Average assets $ 2,220,403 $ 2,165,809 $ 1,954,902 $ 1,494,353 $ 1,402,220
ROA 1.34 % 1.13 % -0.97 % 0.71 % 0.53 %
Adjusted ROA
(non-GAAP) 1.36 % 1.22 % 1.30 % 0.83 % 0.74 %
ROE and ROTCE:
Net income (loss)
(GAAP) $ 7,359 $ 6,161 $ (4,780) $ 2,654 $ 1,838
Adjusted net
income
(non-GAAP) 7,458 6,619 6,369 3,087 2,576
Average
shareholders'
equity (GAAP) 235,577 228,342 209,674 173,356 166,534
Less: average
goodwill and
other
intangible
assets, net 22,922 23,426 18,234 7,018 7,027
------------------- ------------------- ------------------- ------------------- -------------------
Average tangible
common equity
(non-GAAP) 212,655 204,916 191,440 166,338 159,507
ROE 12.67 % 10.73 % -9.07 % 6.16 % 4.44 %
Adjusted ROE
(non-GAAP) 12.84 % 11.53 % 12.09 % 7.16 % 6.22 %
ROTCE (non-GAAP) 14.03 % 11.96 % -9.93 % 6.42 % 4.63 %
Adjusted ROTCE
(non-GAAP) 14.22 % 12.85 % 13.24 % 7.46 % 6.50 %
Efficiency Ratio:
Non-interest
expense (GAAP) $ 15,753 $ 15,779 $ 22,723 $ 10,470 $ 10,815
Less: merger and
acquisition
expenses 128 595 9,139 562 958
------------------- ------------------- ------------------- ------------------- -------------------
Adjusted
non-interest
expense
(non-GAAP) 15,625 15,184 13,584 9,908 9,857
Net interest
income 21,613 21,129 18,157 12,521 11,312
Non-interest
income 4,778 3,739 4,198 3,431 2,850
------------------- ------------------- ------------------- ------------------- -------------------
Total revenue 26,391 24,868 22,355 15,952 14,162
Efficiency ratio
(non-interest
expense / total
revenue) 59.69 % 63.45 % 101.65 % 65.63 % 76.37 %
Adjusted
efficiency ratio
(non-GAAP) 59.21 % 61.06 % 60.76 % 62.11 % 69.60 %
Tangible Book
Value per Share
and Tangible
Common Equity
Ratio:
Shareholders'
equity (GAAP) $ 238,488 $ 230,189 $ 225,242 $ 174,968 $ 169,471
Less: goodwill
and other
intangible
assets, net 22,479 23,145 23,743 7,016 7,020
------------------- ------------------- ------------------- ------------------- -------------------
Tangible common
equity
(non-GAAP) 216,009 207,044 201,499 167,952 162,451
Common shares
outstanding 19,013 18,976 18,980 15,541 15,020
Book value per
share $ 12.54 $ 12.13 $ 11.87 $ 11.26 $ 11.28
Tangible book
value per share
(non-GAAP) 11.36 10.91 10.62 10.81 10.82
Total assets
(GAAP) $ 2,293,903 $ 2,211,170 $ 2,214,896 $ 1,510,751 $ 1,448,508
Less: goodwill
and other
intangible
assets, net 22,479 23,145 23,743 7,016 7,020
------------------- ------------------- ------------------- ------------------- -------------------
Tangible assets
(non-GAAP) 2,271,424 2,188,025 2,191,153 1,503,735 1,441,488
Tangible common
equity to
tangible assets
(non-GAAP) 9.51 % 9.46 % 9.20 % 11.17 % 11.27 %
View original content:https://www.prnewswire.com/news-releases/dogwood-state-bank-reports-record-earnings-in-first-quarter-of-2025-302431930.html
SOURCE Dogwood State Bank
(END) Dow Jones Newswires
April 17, 2025 16:00 ET (20:00 GMT)
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