Cullman Bancorp(US:CULL)2022-08-10 16:00Financial Position - Total assets increased by $29.3 million, or 8.3%, to $384.0 million at June 30, 2022, from $354.7 million at December 31, 2021, primarily due to loan growth funded by increased deposits [162]. - Total deposits increased by $48.2 million, or 20.8%, to $280.2 million at June 30, 2022, driven by a $28.4 million increase in regular savings and other deposits, which rose by 51.4% [167]. - Cash and cash equivalents decreased by $37.1 million, or 60.0%, to $24.8 million at June 30, 2022, due to loan growth and investment purchases [164]. - Stockholders' equity decreased by $1.0 million, or 1.0%, to $98.7 million at June 30, 2022, primarily due to unrealized losses on securities available for sale [169]. - Borrowings decreased by $18.5 million, or 100%, to no borrowings at June 30, 2022, resulting in a net gain of $87,000 from repayment [168]. - Securities available for sale increased by $6.3 million, or 29.5%, to $27.6 million at June 30, 2022, as excess cash from deposits was invested [166]. Income and Expenses - Net interest income for the period was $3.874 million, compared to $2.930 million in the previous year [172]. - Net income increased to $1.3 million for the three months ended June 30, 2022, compared to $847,000 for the same period in 2021, primarily due to increased interest income from loans [178]. - Interest income rose by $706,000, or 20.1%, to $4.1 million for the three months ended June 30, 2022, driven mainly by an increase in loans [179]. - Interest expense decreased by $238,000, or 52.4%, to $216,000 for the three months ended June 30, 2022, mainly due to a reduction in borrowing balances [181]. - Interest expense on certificates of deposit decreased by $81,000, or 34.6%, to $153,000 for the three months ended June 30, 2022, reflecting a decrease in average balance and rates [182]. - Net interest income increased by $944,000, or 32.2%, to $3.9 million for the three months ended June 30, 2022 [184]. - Non-interest income increased to $854,000 for the six months ended June 30, 2022, from $812,000 for the same period in 2021 [204]. - Non-interest expense rose by $517,000, or 11.6%, to $5.0 million for the six months ended June 30, 2022, primarily due to increased salaries and employee benefits [205]. - Income tax expense was $615,000 for the six months ended June 30, 2022, with an effective rate of 20.9% [206]. Loan Performance - Gross loans held for investment rose by $55.7 million, or 21.9%, to $310.3 million at June 30, 2022, with one-to-four family loans increasing by $25.0 million, or 19.6% [165]. - Average balance of loans (excluding PPP loans) increased by $49.2 million, or 20.6%, to $288.6 million for the three months ended June 30, 2022 [180]. - Provision for loan losses increased to $155,000 for the six months ended June 30, 2022, compared to $25,000 for the same period in 2021 [202]. - Allowance for loan losses was $2.56 million at June 30, 2022, up from $2.39 million at June 30, 2021, with a ratio to total loans of 0.83% [202]. Interest Rates and Margins - The net interest margin improved to 4.33% from 3.65% in the previous year [172]. - Interest rate spread increased by 71 basis points to 4.23% for the three months ended June 30, 2022, compared to 3.52% for the same period in 2021 [184]. - Net interest margin increased by 68 basis points to 4.33% for the three months ended June 30, 2022, compared to 3.65% for the same period in 2021 [184]. - The weighted average yield on loans (excluding PPP loans) decreased by seven basis points to 5.28% for the three months ended June 30, 2022 [180]. - Interest income recognized on PPP loans decreased to $2,000 for the three months ended June 30, 2022, compared to $37,000 for the same period in 2021 [180]. Cash Flow and Capital - Cash flows from operating activities were $3.1 million for the six months ended June 30, 2022, compared to $1.3 million for the same period in 2021 [210]. - Cullman Savings Bank exceeded all regulatory capital requirements and was categorized as well capitalized at June 30, 2022 [212].