Business Wire | Jul 20, 2020 03:34PM EDT

Coeur d'Alene Bancorp Announces Its Second Quarter 2020 Results

Jul. 20, 2020

COEUR D'ALENE, Idaho--(BUSINESS WIRE)--Jul. 20, 2020--Coeur d'Alene Bancorp (OTC Pink: CDAB), the parent company of bankcda, is pleased to announce its results for the second quarter 2020.

Coeur d'Alene Bancorp today reported net income of $456,444 or $0.24 per share for six months ended June 30, 2020, down from $720,386 or $0.47 per share for six months ended 2019. All results are unaudited.

Second Quarter 2020 Financial Highlights

* Diluted earnings per share $0.24 for six months ended 2020 versus $0.47 per share for six months ended 2019. * Net book value per share increased to $9.77 compared to $9.15 from one year ago. * Annualized return on average asset (ROAA) was 0.59% and annualized return on average equity (ROAE) was 4.97% for six months ended 2020 compared to 1.14% and 10.41%, respectively, for six months ended 2019. * Revenue related to Paycheck Protection Program (PPP) loans was $129,923. * Total deposits were $150.3M versus $107.9M at June 30, 2019 and $126.6M at March 31, 2020. Non-interest bearing deposits remain strong at 30.66% of total deposits. * Asset quality remains strong with classified loans to tier one capital of 1.59% at June 30, 2020. * Continue to be FIVE Star-rated from Bauer Financial, which is their highest rating. * All capital ratios continue to exceed regulatory minimums.

"Earnings continue to be under pressure based on the asset sensitive nature of our balance sheet. This will continue, going forward, as we work to re-allocate short-term assets from deposit growth and maturing investments. In this low rate environment, our assets are repricing faster than our deposits narrowing our net interest margin and reducing income. Income earned from PPP loans will provide temporary support, but will begin declining as loans are forgiven later this year," said Wes Veach, President and Chief Executive Officer.

"During the quarter, a lot of resources were consumed dealing with COVID-19-related issues: from originating Paycheck Protection Program loans to branch closures and subsequent re-opening. During the quarter, we originated 277 PPP loans totaling $23.8M to small businesses in our region. The SBA paid processing fees ranging from 2% to 5%, based on the loan size. These fees totaled $1,055,311 and will be recognized over the life of the loans.

"We completed a 'core' conversion during the quarter and transitioned our banking system from FISERV to Computer Systems Inc (CSI). This conversion resulted in significant expense that was incurred during the period and will continue to be incurred for the remainder of 2020. We anticipate cost savings from the conversion to be recognized over the next several years starting in 2021.

"The second quarter presented many challenges for the company starting with the reduction in the fed funds rate by 150 basis points late in the first quarter. In response to COVID-19, we shifted employees to work remotely and closed branch lobbies for several weeks. This presented logistical challenges when launching our PPP program at the beginning of April. Our strong core deposit base allowed us to lower deposit rates during the quarter, while still experiencing growth of $23.7M. Loan demand has remained constant, but increased competition has placed pressure on the rates we offer. Our capital position remains solid and classified loans remain low."

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, Idaho.

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

Balance Sheet Overview(Unaudited) June 30, 2020 June 30, 2019 Mar 31, 2020

Assets:Cash and due from banks $ 12,414,066 $ 6,418,964 $ 11,055,784

Securities available for $ 52,381,851 38,849,637 $ 50,653,637 sale, at fair valueNet Loans $ 96,440,995 72,708,622 $ 73,332,917

Other assets $ 10,297,569 8,181,507 $ 9,972,417

Total assets $ 171,534,481 $ 126,158,730 $ 145,014,755

Liabilities andShareholders' Equity:Total deposits $ 150,292,874 $ 107,863,571 $ 126,557,276

Borrowings $ 329,514 392,015 $ 345,140

Capital lease liability $ 587,955 32,429 $ 604,541

Other liabilities $ 874,429 390,841 $ 196,830

Shareholders' equity $ 19,449,709 17,479,874 $ 17,310,968

Total liabilities and $ 171,534,481 $ 126,158,730 $ 145,014,755 shareholders' equity Ratios:Return on average assets 0.59 % 1.14 % 0.67 %

Return on average equity 4.97 % 10.41 % 5.43 %

Community bank leverage 10.86 % 13.10 % 12.24 %ratio^(1)Net interest margin (YTD) ^ 3.50 % 4.51 % 3.84 %(1)Efficiency ratio (YTD)^ (1) 82.06 % 67.74 % 82.87 %

Nonperforming assets to 1.59 % 2.05 % 1.70 %tier 1 capital ^(1)Nonperforming assets to 0.17 % 0.27 % 0.21 %total assets ^(1) denotes bank-only ratios

Income Statement Overview(unaudited) For the six months ended June 30, 2020 June 30, 2019

Interest income $ 2,721,968 $ 2,823,886

Interest Expense $ 150,026 $ 153,838

Net interest income $ 2,571,942 $ 2,670,048

Loan loss provision $ - $ -

Noninterest income $ 471,771 $ 414,179

Salaries and employee benefits $ 1,263,138 $ 1,097,292

Occupancy Expense $ 267,310 $ 223,958

Other noninterest expense $ 967,159 $ 727,447

Income before income taxes $ 546,106 $ 1,035,530

Income tax expense $ 89,662 $ 315,144

Net income $ 456,444 $ 720,386

View source version on businesswire.com: https://www.businesswire.com/news/home/20200720005734/en/

CONTACT: Wes Veach, 208-415-5006