Business Wire | Jan 15, 2021 06:27PM EST

Coeur d'Alene Bancorp Announces Its Fourth Quarter and 2020 Results

Jan. 15, 2021

COEUR D'ALENE, Idaho--(BUSINESS WIRE)--Jan. 15, 2021--Coeur d'Alene Bancorp (OTC Pink: CDAB), the parent company of bankcda, is pleased to announce its results for the fourth quarter, and full year 2020.

Coeur d'Alene Bancorp today reported net income of $1,291,283 or $0.69 per share for full year 2020, compared to $1,404,144 or $0.83 per share for year ended 2019. Net income for the fourth quarter totaled $554,076, compared to $355,323 for fourth quarter 2019. All results are unaudited.

2020 Financial Highlights

* Diluted earnings per share $0.68 for twelve months ended 2020 versus $0.82 per share for twelve months ended 2019. * Net book value per share increased to $10.22, compared to $9.52 from one year ago. * Annualized return on average asset (ROAA) was 0.77% and annualized return on average equity (ROAE) was 6.74% for twelve months ended 2020, compared to 1.07% and 9.02% for twelve months ended 2019, respectively. * Total assets ended the year at $190.3 million, compared to $140.7 million as of December 30, 2019, an increase of 35.3%. Totals assets increased $10.2 million, or 5.7%, during the fourth quarter 2020. * Gross loans were $88.5 million at year end, versus $75.9 million at December 31, 2019. Loans, net of Paycheck Protection Program (PPP), totaled $78.8 million which represents a 3.7% increase over 2019. * Total deposits increased 39.11% to $168.1 million for the year, compared to $120.8 million as of December 31, 2019. * Net interest margin was 3.73%, including SBA PPP loans, and 3.52%, excluding PPP loans, compared to 4.28% for 2019. * Cost of funds was 0.17%, compared to 0.26% in 2019. * Asset quality remains strong with classified loans to Tier 1 Capital of 1.38% at December 31, 2020. * Continue to be FIVE Star-rated from Bauer Financial, which is their highest rating. * We continue to far exceed the minimum Community Bank Leverage Ratio.

"Our local economy remains stable with minimal negative effect from the pandemic. Inward migration to Kootenai County has increased for both businesses and consumers, which created a strong demand in the real estate market in the latter half of 2020. Idaho leads the nation with over 90% of small businesses that are open and operating.

"Earnings declined from prior year as a result of lower interest rates, significant expenses related to our core system conversion, and a full year of operation for our Post Falls branch. Revenue earned from originating Paycheck Protection Program (PPP) loans was a significant contribution to our bottom line. We experienced strong deposit growth with three of our four branches growing between 34% - 41% while our newest branch grew 200%. Historically low interest rates continue to put pressure on our net interest margin, but our strong core deposit base allowed us to reduce our funding costs to offset lost revenue. During the fourth quarter, we began processing PPP forgiveness with 59% of our loans forgiven, which was 100% of those submitted for forgiveness. Although credit quality remains strong, we added $160,500 to our loan loss provision during the second half of the year due to the uncertainty over the coming months. Loan demand has increased in recent months, allowing us to reallocate assets from cash or low yielding investment into loans at a significantly higher yield," said Wes Veach, President and Chief Executive Officer.

Coeur d'Alene Bancorp, parent company of bankcda, is headquartered in Coeur d'Alene, Idaho with branches in Coeur d'Alene, Hayden, Post Falls, and Kellogg.

For more information, visit www.bankcda.com or contact Wes Veach at 208-415-5006.

Balance Sheet Overview(Unaudited) December 31, December 31, September 30, 2020 2019 2020Assets: $ $ 9,026,080 $ Cash and due from banks 37,449,865 19,063,011

Securities available for sale, at 56,392,216 47,139,257 53,274,459 fair valueNet Loans 86,477,766 74,445,557 97,674,625

Other assets 10,020,658 10,055,195 10,145,441

$ $ $ Total assets 190,340,505 140,666,089 180,157,536

Liabilities and Shareholders' Equity: $ $ $ Total deposits 168,079,796 120,822,376 158,299,338

Borrowings 298,265 360,764 313,890

Capital lease liability 561,518 620,684 571,103

Other liabilities 1,089,168 522,572 982,421

Shareholders' equity 20,311,758 18,339,693 19,990,784

Total liabilities and shareholders' $ $ $ equity 190,340,505 140,666,089 180,157,536

Ratios:Return on average assets 0.77 % 1.07 % 0.61 %

Return on average equity 6.74 % 9.02 % 5.24 %

Community bank leverage ratio^(1) 10.04 % 12.36 % 10.45 %

Net interest margin (YTD) ^(1) 3.73 % 4.28 % 3.62 %

Net interest margin without PPP (YTD) 3.52 % 4.28 % 3.42 %^ (1)Efficiency ratio (YTD)^ (1) 74.37 % 68.45 % 79.36 %

Nonperforming assets to tier 1 1.38 % 1.80 % 1.49 %capital ^(1)Nonperforming assets to total assets 0.14 % 0.22 % 0.15 %

^(1) denotes bank-only ratiosIncome Statement Overview(unaudited)For the twelve months endedDecember 31,2020December 31,2019Interest income$ 6,094,257

$ 5,573,694

Interest Expense266,706

322,465

Net interest income5,827,551

5,251,229

Loan loss provision160,500

-

Noninterest income763,574

779,501

Salaries and employee benefits2,516,236

2,114,504

Occupancy Expense553,973

496,787

Other noninterest expense1,826,315

1,500,080

Income before income taxes1,534,101

1,919,359

Income tax expense242,818

515,215

Net income$ 1,291,283

$ 1,404,144

View source version on businesswire.com: https://www.businesswire.com/news/home/20210115005585/en/

CONTACT: Wes Veach, 208-415-5006