Financial Performance - Net interest income for Q2 2022 was $14.3 million, up from $12.8 million in Q2 2021, representing a 11.7% increase[237] - Net interest income for the first half of 2022 was $27.4 million, compared to $25.6 million for the same period in 2021, reflecting a 7.0% growth[237] - Net interest income for the three months ended June 30, 2022, was $14,267 thousand, compared to $12,831 thousand for the same period in 2021, representing an increase of 11.19%[243] - Non-interest income decreased by 37.46% to $2.372 million for the three months ended June 30, 2022, compared to $3.793 million in the prior year[261] - Total non-interest expense increased by 2.59% to $10.462 million for the three months ended June 30, 2022, compared to $10.198 million in the prior year[267] Interest Margin and Rates - The net interest margin for Q2 2022 increased to 3.46%, compared to 3.22% in Q2 2021, an increase of 24 basis points[238] - The net interest margin for the first half of 2022 was 3.35%, up from 3.26% in the same period of 2021, an increase of 9 basis points[239] - The interest rate spread improved to 3.31% for the three months ended June 30, 2022, compared to 3.06% in the same period of 2021[243] Loan and Deposit Growth - Loans for the three months ended June 30, 2022, amounted to $1,328,661 thousand, up from $1,186,439 thousand in the same period of 2021, indicating a growth of 11.97%[243] - Total deposits for the three months ended June 30, 2022, were $1,135,198 thousand, a slight increase from $1,118,950 thousand in the same period of 2021, showing a growth of 1.44%[243] - The originated loan portfolio, excluding SBA PPP loans, increased by $67.3 million in the first half of 2022[282] Allowance for Loan Losses - The allowance for loan losses is based on ongoing assessments of estimated probable incurred losses in the loan portfolio[224] - The allowance for loan losses (ALL) was $16.825 million as of June 30, 2022, compared to $16.913 million at December 31, 2021[285] - The allowance for loan losses decreased by $0.1 million to $16.8 million at June 30, 2022, representing 1.25% of loans receivable[288] Nonperforming Loans and Assets - Nonperforming loans decreased by $0.7 million to $11.1 million at June 30, 2022, from December 31, 2021[299] - Total nonperforming assets decreased to $12.6 million or 0.71% of total assets at June 30, 2022, compared to $13.2 million or 0.76% at December 31, 2021[299] - Originated nonperforming loans increased to $8.5 million at June 30, 2022, from $6.5 million at December 31, 2021[297] Securities and Investments - Investment securities for the three months ended June 30, 2022, were $285,332 thousand, with an interest income of $1,593 thousand, compared to $283,557 thousand and $1,308 thousand in the same period of 2021, showing a growth in interest income of 21.88%[243] - Securities available for sale decreased to $177.1 million at June 30, 2022, from $203.1 million at December 31, 2021, due to unrealized losses of $17.2 million[275] - Securities held to maturity increased to $99.2 million at June 30, 2022, compared to $71.1 million at December 31, 2021, primarily due to the purchase of agency mortgage-backed securities[276] Capital and Equity - As of June 30, 2022, total stockholders' equity decreased to $164.7 million from $170.9 million at December 31, 2021, primarily due to a $12.4 million decrease in accumulated other comprehensive income and a $2.7 million cash dividend payment[328] - The Bank's Tier 1 capital to risk-weighted assets ratio was 13.2% as of June 30, 2022, exceeding the required minimum of 6.0%[339] - The Bank's total capital to risk-weighted assets ratio was 14.3% as of June 30, 2022, compared to 13.4% as of December 31, 2021[339] Interest Rate Risk Management - The company focuses on originating shorter-term secured loans and variable rate loans to manage interest rate risk[344] - Interest rate risk sensitivity is assessed through net interest income shock analysis, indicating potential changes in income due to interest rate shifts[348] - The projected change in net interest income over one year at +300 basis points is 1% as of June 30, 2022, while it was a decrease of 11% at December 31, 2021[349]
Citizens munity Bancorp(CZWI) - 2022 Q2 - Quarterly Report