Professional Holding Corp. Reports Second Quarter Results

Quarterly Net Income of $3.1 Million as Assets Top $2.0 Billion

CORAL GABLES, FL / ACCESSWIRE / July 28, 2020 / Professional Holding Corp. (the "Company") (NASDAQ:PFHD), the parent company of Professional Bank (the "Bank"), today reported net income of $3.1 million, or $0.22 per diluted share for the second quarter of 2020 compared to a net loss of ($1.3 million) for the first quarter of 2020, and income of $0.5 million or $0.08 per diluted share for the second quarter of 2019. For the first six months of 2020, net income totaled $1.8 million, or $0.15 per diluted share, compared to net income of $0.9 million, or $0.14 per diluted share for the same period of 2019.

"I am proud of our team which continues to perform and adapt to the COVID-19 pandemic," said Daniel R. Sheehan, Chairman and Chief Executive Officer. "We remain committed to the welfare of our employees, clients, and the South Florida community by taking steps to safely remain open assisting existing clients and helping new ones. The Company issued $225.6 million of funds to small businesses through the Paycheck Protection Program ("PPP"), where our average loan amount was $152,616 and median loan was $44,650." Chief Financial Officer Mary Usategui commented that the Company realized efficiencies related to the successful integration of Marquis Bancorp. ("MBI") which led to a profitable second quarter.

Results of Operations:

For the second quarter of 2020:

Net interest income was $16.3 million, an increase of $9.5 million, or 139.7%, compared to the same period in 2019.
For the current quarter, net income was $3.1 million compared to $0.5 million for the same period in 2019. Pre-Tax Pre-Provision net income (non-GAAP, see Explanation of Certain unaudited non-GAAP Financial Measures) was $5.7 million for the current quarter, an increase of $6.1 million compared to a loss of ($0.6) million in the previous quarter, and 375% increase compared to the $1.2 million during the same period in 2019.
Noninterest income totaled $1.0 million for the second quarter 2020 unchanged from the second quarter 2019.
Noninterest expense totaled $11.5 million, an increase of $5.0 million, or 76.9%, compared to the same period in 2019. Increases in employee headcount and MBI acquisition expenses were primarily responsible for the increase.

Financial Condition:

At June 30, 2020:

Total assets increased to $2.0 billion, an increase of $0.3 billion, or 17.6%, compared to March 31, 2020 primarily due to SBA Paycheck Protection Program (PPP) funding. New loan originations were $62.6 million for the quarter, compared to $65.2 million the prior quarter, excluding PPP loans. Net new, non-PPP loan growth was relatively flat, with a modest $2.0 million increase.
Net loans increased to $1.6 billion, an increase of $0.3 billion, or 23.1%, compared to March 31, 2020 and an increase of $0.8 billion or 128.6% compared to June 30, 2019. We experienced growth across all loan types due to new organic origination and the MBI merger in the first quarter.
Nonperforming assets totaled $6.2 million compared to $4.0 million at March 31, 2020 and $1.1 million at June 30, 2019.
The Company maintained its strong capital position. As of June 30, 2020, the Company was well-capitalized with a total risk-based capital ratio of 15.9%, and a leverage capital ratio of 10.5%.

COVID-19 Operational Response and Bank Preparedness:

In early March 2020, the Company began preparing for potential disruptions and government limitations of activity relating to the COVID-19 pandemic. Preparations included: (i) conducting COVID-19 testing, (ii) publishing a "work from home" guide, (iii) phasing in remote operations with a focus on employee safety, redundancy, and business continuity, and (iv) hardware upgrades. The hardware upgrades included increased mobile/laptop capabilities, increased VPN licenses & bandwidth, and expanded technologies for video and conference line functionality.
The Company issued multi-level communications including the reinforcement of best practices with staff and clients about business and safety precautions and escalation procedures. Steps were taken to reduce branch traffic; additionally, all non-client facing employees are working remotely.
Policies and Procedures have been established to (i) take immediate precautionary steps with any exposed employees and (ii) for the eventual safe and orderly return to the office. The policy and procedures incorporate social distancing and alternating in-office schedules. Branches are given regularly scheduled deep cleanings to ensure workspaces are safe for our employees and clients.
The Company participated in the PPP and processed/closed/funded 1,478 small business loans representing over $225 million in relief proceeds. These loans were subsequently pledged to the Federal Reserve as part of the Paycheck Protection Program Liquidity Facility (PPPLF). The PPPLF pledged loans are non-recourse to the Bank.
The Company added an online PPP application form and automated the PPP loan closing documentation process.
As of July 10, 2020, we have reviewed and processed 181 debt service relief requests in accordance with Interagency guidelines published on March 13, 2020. As currently interpreted by the agencies, the guidelines assert that short-term modifications made in good faith for reasons related to the COVID-19 pandemic to borrowers who were current prior to such relief are not considered troubled debt restructurings. These modifications include deferrals of principal and interest, modification to interest only, and deferrals to escrow requirements. The modifications have varying terms up to six months. As of July 10, 2020, 13.1% of all loans have been approved for modification. Payment deferrals represent 7.6% of all loans and are comprised of 62 residential real estate loans totaling $43.4 million, 16 loans secured by owner occupied commercial real estate totaling $21.2 million, 20 loans collateralized by non-owner occupied commercial real estate totaling $36.2 million and 5 commercial and industrial loans totaling $2.6 million.

PROFESSIONAL HOLDING CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollar amounts in thousands, except per share data)

 
June 30,
 
 
December 31,
 

 
2020
 
 
2019
 

ASSETS

Cash and due from banks

 
$
38,034
 
 
$
21,408
 

Interest-bearing deposits

 
 
215,007
 
 
 
150,572
 

Federal funds sold

 
 
39,444
 
 
 
26,970
 

Cash and cash equivalents

 
 
292,485
 
 
 
198,950
 

Securities available for sale, at fair value

 
 
105,213
 
 
 
28,441
 

Securities held to maturity (fair value June 30, 2020 – $1,652, December 31, 2019 – $224)

 
 
1,635
 
 
 
214
 

Equity securities

 
 
995
 
 
 
971
 

Loans, net of allowance of $9,045 and $6,548 as of June 30, 2020 and December 31, 2019, respectively

 
 
1,559,861
 
 
 
785,167
 

Federal Home Loan Bank stock, at cost

 
 
4,291
 
 
 
2,994
 

Federal Reserve Bank stock, at cost

 
 
4,745
 
 
 
2,074
 

Accrued interest receivable

 
 
5,495
 
 
 
2,498
 

Premises and equipment, net

 
 
5,300
 
 
 
4,307
 

Bank owned life insurance

 
 
17,113
 
 
 
16,858
 

Deferred tax asset

 
 
6,901
 
 
 
1,859
 

Goodwill

 
 
14,728
 
 
 
–
 

Core deposit intangibles

 
 
3,783
 
 
 
–
 

Other assets

 
 
9,207
 
 
 
8,808
 

 
$
2,031,752
 
 
$
1,053,141
 

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits

Demand – non-interest bearing

 
$
495,086
 
 
$
184,211
 

Demand – interest bearing

 
 
763,108
 
 
 
599,318
 

Time deposits

 
 
258,249
 
 
 
109,344
 

Total deposits

 
 
1,516,443
 
 
 
892,873
 

Federal Home Loan Bank advances

 
 
65,077
 
 
 
55,000
 

Subordinated debt

 
 
9,932
 
 
 
–
 

Official checks

 
 
4,439
 
 
 
6,191
 

Line of credit

 
 
–
 
 
 
9,999
 

PPP loan advances

 
 
218,080
 
 
 
–
 

Accrued interest and other liabilities

 
 
15,347
 
 
 
9,776
 

Total liabilities

 
 
1,829,318
 
 
 
973,839
 

Commitments and contingent liabilities

Stockholders' equity

Preferred stock, 10,000,000 shares authorized, none issued

 
 
–
 
 
 
–
 

Class A Voting Common stock, $0.01 par value; authorized 50,000,000 shares, issued 13,252,745 and outstanding 12,692,451 shares as of June 30, 2020 and authorized 50,000,000 shares, issued 5,360,262 and outstanding 5,115,262 shares at December 31, 2019

 
 
132
 
 
 
53
 

Class B Non-Voting Common stock, $0.01 par value; 10,000,000 shares authorized,752,184 shares issued and outstanding at June 30, 2020 and December 31, 2019

 
 
7
 
 
 
7
 

Treasury stock, at cost

 
 
(9,132
)
 
 
(4,155
)

Additional paid-in capital

 
 
202,438
 
 
 
77,019
 

Retained earnings

 
 
8,265
 
 
 
6,451
 

Accumulated other comprehensive gain (loss)

 
 
724
 
 
 
(73
)

Total stockholders' equity

 
 
202,434
 
 
 
79,302
 

 
$
2,031,752
 
 
$
1,053,141
 

PROFESSIONAL HOLDING CORP.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)
(Dollar amounts in thousands, except per share data)

 
Three Months Ended June 30,
 
 
Six Months Ended June 30,
 

 
2020
 
 
2019
 
 
2020
 
 
2019
 

Interest income

Loans, including fees

 
$
17,897
 
 
$
8,712
 
 
$
27,912
 
 
$
16,787
 

Taxable securities

 
 
438
 
 
 
161
 
 
 
660
 
 
 
332
 

Dividend income on restricted stock

 
 
131
 
 
 
70
 
 
 
210
 
 
 
127
 

Other

 
 
56
 
 
 
555
 
 
 
760
 
 
 
1,024
 

Total interest income

 
 
18,522
 
 
 
9,498
 
 
 
29,542
 
 
 
18,270
 

Interest expense

Deposits

 
 
1,617
 
 
 
2,398
 
 
 
4,243
 
 
 
4,411
 

Federal Home Loan Bank advances

 
 
287
 
 
 
269
 
 
 
565
 
 
 
507
 

Other borrowings

 
 
327
 
 
 
–
 
 
 
382
 
 
 
–
 

Total interest expense

 
 
2,231
 
 
 
2,667
 
 
 
5,190
 
 
 
4,918
 

Net interest income

 
 
16,291
 
 
 
6,831
 
 
 
24,352
 
 
 
13,352
 

Provision for loan losses

 
 
1,750
 
 
 
495
 
 
 
2,595
 
 
 
382
 

Net interest income after provision for loan losses

 
 
14,541
 
 
 
6,336
 
 
 
21,757
 
 
 
12,970
 

Non-interest income

Service charges on deposit accounts

 
 
307
 
 
 
281
 
 
 
529
 
 
 
357
 

Income from Bank owned life insurance

 
 
126
 
 
 
85
 
 
 
255
 
 
 
142
 

Gain on sale of securities

 
 
11
 
 
 
3
 
 
 
15
 
 
 
3
 

Other

 
 
524
 
 
 
554
 
 
 
1,025
 
 
 
781
 

Total non-interest income

 
 
968
 
 
 
923
 
 
 
1,824
 
 
 
1,283
 

Non-interest expense

Salaries and employee benefits

 
 
6,912
 
 
 
4,558
 
 
 
12,175
 
 
 
8,872
 

Occupancy and equipment

 
 
1,081
 
 
 
602
 
 
 
1,855
 
 
 
1,123
 

Data processing

 
 
421
 
 
 
162
 
 
 
597
 
 
 
324
 

Marketing

 
 
151
 
 
 
133
 
 
 
288
 
 
 
272
 

Professional fees

 
 
806
 
 
 
307
 
 
 
1,161
 
 
 
582
 

Acquisition expenses

 
 
560
 
 
 
–
 
 
 
2,223
 
 
 
–
 

Regulatory assessments

 
 
300
 
 
 
145
 
 
 
514
 
 
 
307
 

Other

 
 
1,317
 
 
 
630
 
 
 
2,221
 
 
 
1,567
 

Total non-interest expense

 
 
11,548
 
 
 
6,537
 
 
 
21,034
 
 
 
13,047
 

Income before income taxes

 
 
3,961
 
 
 
722
 
 
 
2,547
 
 
 
1,206
 

Income tax provision

 
 
830
 
 
 
223
 
 
 
733
 
 
 
352
 

Net income

 
 
3,131
 
 
 
499
 
 
 
1,814
 
 
 
854
 

Earnings (loss) per share:

Basic

 
$
0.23
 
 
$
0.08
 
 
$
0.16
 
 
$
0.14
 

Diluted

 
$
0.22
 
 
$
0.08
 
 
$
0.15
 
 
$
0.14
 

Other comprehensive income:

Unrealized holding gain (loss) on securities available for sale

 
 
743
 
 
 
215
 
 
 
1,067
 
 
 
483
 

Tax effect

 
 
(188
)
 
 
(54
)
 
 
(270
)
 
 
(122
)

Other comprehensive gain (loss), net of tax

 
 
555
 
 
 
161
 
 
 
797
 
 
 
361
 

Comprehensive income (loss)

 
$
3,686
 
 
$
660
 
 
$
2,611
 
 
$
1,215
 

Capital

The Company's capital position remained strong as of June 30, 2020, with a total risk-based capital ratio of 15.9%, and a leverage capital ratio of 10.5%. The total risk-based capital ratio was 12.3% at December 31, 2019 and 14.1% at June 30, 2019 and the leverage capital ratio was 7.8% at December 31, 2019 and 9.6% at June 30, 2019. Each of the Company's capital ratios remain well in excess of regulatory requirements.

On March 2, 2020, the Company's Board of Directors authorized the purchase from time to time of up to $10 million of the Company's Class A Common Stock. Under this program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act. As of June 30, 2020, purchases totaling $5.0 million at an average price of $15.79 had been made under this program. Purchases during the quarter totaled $2.9 million or 182,097 shares. The Company has not made any repurchases since May 18, 2020.

Liquidity

The Company maintains a strong liquidity position. At June 30, 2020, in addition to its balance sheet liquidity, the Company had the ability to generate approximately $194.3 million in additional liquidity through available resources.

Net Interest Income and Net Interest Margin Analysis

The following table shows the average outstanding balance of each principal category of the Company's assets, liabilities and shareholders' equity, together with the average yields on assets and the average costs of liabilities for the periods indicated. Such yields and costs are calculated by dividing the annualized income or expense by the average daily balances of the corresponding assets or liabilities for the respective periods.

 
For the Three Months Ended June 30,
 
 
 
 

 
2020
 
 
2019
 

 
Average
 
 
Interest
 
 
 
 
 
Average
 
 
Interest
 
 
 
 

 
Outstanding
 
 
Income/
 
 
Average
 
 
Outstanding
 
 
Income/
 
 
Average
 

(Dollars in thousands)

 
Balance
 
 
Expense(4)
 
 
Yield/Rate
 
 
Balance
 
 
Expense(4)
 
 
Yield/Rate
 

Assets

Interest earning assets

Interest-bearing deposits

 
$
170,658
 
 
$
44
 
 
 
0.10
%
 
$
65,671
 
 
$
403
 
 
 
2.49
%

Federal funds sold

 
 
32,965
 
 
 
12
 
 
 
0.15
%
 
 
23,723
 
 
 
152
 
 
 
2.60
%

Federal Reserve Bank stock, FHLB stock and other corporate stock

 
 
7,598
 
 
 
131
 
 
 
6.93
%
 
 
4,291
 
 
 
70
 
 
 
6.62
%

Investment securities

 
 
109,338
 
 
 
438
 
 
 
1.61
%
 
 
28,930
 
 
 
161
 
 
 
2.26
%

Loans(1)

 
 
1,501,590
 
 
 
17,897
 
 
 
4.79
%
 
 
673,884
 
 
 
8,712
 
 
 
5.24
%

Total interest earning assets

 
 
1,822,149
 
 
 
18,522
 
 
 
4.09
%
 
 
796,499
 
 
 
9,498
 
 
 
4.84
%

Noninterest earning assets

 
 
102,663
 
 
 
 
 
 
 
 
 
 
 
47,026
 
 
 
 
 
 
 
 
 

Total assets

 
 
1,924,812
 
 
 
 
 
 
 
 
 
 
 
843,525
 
 
 
 
 
 
 
 
 

Liabilities and shareholders' equity

Interest-bearing liabilities

Interest-bearing deposits

 
 
994,972
 
 
 
1,617
 
 
 
0.65
%
 
 
543,668
 
 
 
2,398
 
 
 
1.79
%

Borrowed funds

 
 
230,516
 
 
 
614
 
 
 
1.07
%
 
 
45,055
 
 
 
269
 
 
 
2.42
%

Total interest-bearing liabilities

 
 
1,225,488
 
 
 
2,231
 
 
 
0.73
%
 
 
588,723
 
 
 
2,667
 
 
 
1.84
%

Noninterest-bearing liabilities

Noninterest-bearing deposits

 
 
475,613
 
 
 
 
 
 
 
 
 
 
 
162,269
 
 
 
 
 
 
 
 
 

Other noninterest-bearing liabilities

 
 
19,540
 
 
 
 
 
 
 
 
 
 
 
12,438
 
 
 
 
 
 
 
 
 

Shareholders' equity

 
 
204,171
 
 
 
 
 
 
 
 
 
 
 
80,095
 
 
 
 
 
 
 
 
 

Total liabilities and shareholders' equity

 
$
1,924,812
 
 
 
 
 
 
 
 
 
 
$
843,525
 
 
 
 
 
 
 
 
 

Net interest spread(2)

 
 
 
 
 
 
 
 
 
 
3.36
%
 
 
 
 
 
 
 
 
 
 
3.00
%

Net interest income

 
 
 
 
 
$
16,291
 
 
 
 
 
 
 
 
 
 
$
6,831
 
 
 
 
 

Net interest margin(3)

 
 
 
 
 
 
 
 
 
 
3.60
%
 
 
 
 
 
 
 
 
 
 
3.48
 

Includes nonaccrual loans.
Net interest spread is the difference between interest rates earned on interest earning assets and interest rates paid on interest-bearing liabilities.
Net interest margin is a ratio of net interest income to average interest earning assets for the same period.
Interest income on loans includes loan fees of $891 thousand and $148 thousand for the three months ended June 30, 2020 and 2019, respectively.

Provision for Loan Losses

The Company's provision for loan losses amounted to $1.8 million for the second quarter of 2020 compared to $0.5 million for the second quarter of 2019. The increased provision was intended to address the elevated credit risk levels related to the COVID-19 pandemic. The Company's allowance for loan losses as a percentage of total loans (excluding PPP loans) was 0.67% at June 30, 2020, compared to 0.55% at March 31, 2020. When taking into consideration the purchase accounting marks on the MBI loan portfolio our allowance for loan losses as a percentage of total loans (excluding PPP loans) would be approximately 1.95% (non-GAAP, see Explanation of Certain unaudited non-GAAP Financial Measures).

Investment Securities

The Company's investment portfolio increased by $83.8 million, or 349.2%, from $24.0 million at June 30, 2019 to $107.8 million at June 30, 2020. The investment of a portion of the proceeds from the Company's initial public offering is the primary reason for this increase. The Company invested these proceeds into liquid assets to provide more liquidity to fund loan growth, as well as securities available for sale. To supplement interest income earned on the Company's loan portfolio, the Company invests in high quality mortgage-backed securities, government agency bonds, corporate bonds, community development district bonds and equity securities (including mutual funds).

Loan Portfolio

The Company's primary source of income is derived from interest earned on loans. The Company's loan portfolio consists of loans secured by real estate as well as commercial business loans, construction and development loans, and other consumer loans. The Company's loan clients primarily consist of small to medium sized businesses, the owners and operators of those businesses, and other professionals, entrepreneurs and high net worth individuals. The Company's owner-occupied and investment commercial real estate loans, residential construction loans, and commercial business loans provide higher risk-adjusted returns, shorter maturities, and more sensitivity to interest rate fluctuations and are complemented by the relatively lower risk residential real estate loans to individuals. The Company's lending activities are principally directed to the Miami-Dade MSA. The following table summarizes and provides additional information about certain segments of the Company's loan portfolio as of June 30, 2020:

 
June 30, 2020
 
 
December 31, 2019
 

(Dollars in thousands)

 
Amount
 
 
Percent
 
 
Amount
 
 
Percent
 

Commercial real estate

 
$
704,947
 
 
 
44.8
%
 
$
270,981
 
 
 
34.2
%

Owner Occupied

 
 
259,345
 
 
 
–
 
 
 
112,618
 
 
 
–
 

Non-Owner Occupied

 
 
445,602
 
 
 
–
 
 
 
158,363
 
 
 
–
 

Residential real estate

 
 
388,613
 
 
 
24.6
%
 
 
342,257
 
 
 
43.2
%

Commercial

 
 
393,020
 
 
 
24.9
%
 
 
129,477
 
 
 
16.3
%

Construction and development

 
 
76,684
 
 
 
4.9
%
 
 
41,465
 
 
 
5.2
%

Consumer and other loans

 
 
13,281
 
 
 
0.8
%
 
 
8,287
 
 
 
1.1
%

Total loans

 
$
1,576,545
 
 
 
100.0
%
 
$
792,467
 
 
 
100.0
%

Unearned loan origination (fees) costs, net

 
 
(7,639
)
 
 
 
 
 
 
(752
)
 
 
 
 

Allowance for loan losses

 
 
(9,045
)
 
 
 
 
 
 
(6,548
)
 
 
 
 

Loans, net

 
$
1,559,861
 
 
 
 
 
 
$
785,167
 
 
 
 
 

Non-Performing Assets

As of June 30, 2020, the Company had nonperforming assets of $6.2 million, or 0.30% of total assets compared to nonperforming assets of $4.0 million, or 0.26% of total assets at March 31, 2020.

The Company learned on July 15, 2020 that one of its borrowers, Coex Coffee International Inc. ("Coex"), filed a Petition Commencing an Assignment for the Benefit of Creditors in the Circuit Court of the 11th Judicial Circuit in Miami-Dade County, Florida. Coex is primarily in the business of purchasing and selling green coffee beans. Coex has financed its business through various credit facilities from ten financial institutions totaling $191.9 million. The Company currently has a total of thirty-one (31) advances for the purchase of coffee from growers for periods of up to 90 days with an aggregate outstanding balance of $12.4 million. However, $4.1 million has been participated out without recourse to another financial institution leaving the Company with a current balance of $8.3 million. The loans are required to be over-collateralized. While at the time of petition, the advances were current, through court documents and legal inquiry (by the Company's counsel), the Company is presently investigating the status of its security and collateral. The situation remains fluid and as more information is obtained by the Company, we will evaluate the status and reserve associated with this loan.

Allowance for Loan and Lease Losses ("ALLL")

The Company's allowance for loan losses was $9.0 million at June 30, 2020, compared to $7.4 million at March 31, 2020, an increase of $1.6 million or 21.6%. The increased size of the Company's loan portfolio and the anticipated economic stress on the Company's customers resulting from the actual and projected effects of COVID-19 were primarily responsible for this increase. At March 31, 2020, the Company had an allowance for loan losses to total gross loans (net of overdrafts) ratio of 0.55%. At June 30, 2020, the Company's allowance for loan losses was 0.67% of total gross loans (net of overdrafts and excluding PPP loans) and provided coverage of 146.5% of nonperforming loans.

Explanation of Certain unaudited non-GAAP Financial Measures

This press release contains financial information determined by methods other than U.S. Generally Accepted Accounting Principles ("GAAP"), including adjusted net income and adjusted net income per share, which we refer to "non-GAAP financial measures." The table below provides a reconciliation between these non-GAAP measures and net income and net income per share, which are the most comparable GAAP measures.

Management uses these non-GAAP financial measures in its analysis of the Company's performance and believes these measures are useful supplemental information that can enhance investors' understanding of the Company's business and performance without considering taxes or provisions for loan losses and can be useful when comparing performance with other financial institutions. However, these non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures.

Reconciliation of non-GAAP Financial Measures

 
Three Months Ended June 30,
 
 
Three Months Ended
 
 
Six Months Ended June 30,
 

 
2020
 
 
2019
 
 
March 31, 2020
 
 
2020
 
 
2019
 

Adjusted net income (non-GAAP)

Net income (GAAP)

 
$
3,131
 
 
$
499
 
 
$
(1,317
)
 
$
1,814
 
 
$
854
 

Less: income tax provision (benefit)

 
 
830
 
 
 
223
 
 
 
(97
)
 
 
733
 
 
 
352
 

Less: provision loan losses

 
 
1,750
 
 
 
495
 
 
 
845
 
 
 
2,595
 
 
 
382
 

Adjusted net income (non-GAAP)

 
$
5,711
 
 
$
1,217
 
 
$
(569
)
 
$
5,142
 
 
$
1,588
 

Adjusted net income per share (non-GAAP)

Earnings per share (GAAP)

 
$
0.23
 
 
$
0.08
 
 
$
(0.14
)
 
$
0.16
 
 
$
0.14
 

Effect of non-GAAP adjustments

 
 
0.19
 
 
 
0.12
 
 
 
0.08
 
 
 
0.29
 
 
 
0.12
 

Adjusted net income per share (non-GAAP)

 
$
0.43
 
 
$
0.21
 
 
$
(0.06
)
 
$
0.45
 
 
$
0.27
 

 
6/30/2020
 

Total Loans (less PPP loans)

 
 
1,352,556
 

Allowance for Loan Loss

 
 
9,045
 

GAAP: Allowance for Loan Loss as a % of Total Loans (excluding PPP loans)

 
 
0.67
%

Purchase Accounting Loan Marks

 
 
17,696
 

Total Loans (less PPP and excluding loan marks)

 
 
1,370,252
 

Non-GAAP: Loan Marks + Allowance / Total Loans (excluding PPP loans and loan marks)

 
 
1.95
%

Additional Materials

There is also a slide presentation with supplemental financial information relating to this release that can be accessed at https://myprobank.com/ir/.

Forward Looking Statements

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements contained in this presentation that are not statements of historical fact may be deemed to be forward-looking statements, including, without limitation, statements preceded by, followed by or including words such as "anticipate," "intend," "believe," "estimate," "plan," "seek," "project" or "expect," "may," "will," "would," "could" or "should" and similar expressions. Forward looking statements represent the Company's current expectations, plans or forecasts and involve significant risks and uncertainties. Several important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include, without limitation, current and future economic and market conditions, including those that could impact credit quality and the ability to generate loans and gather deposits; the duration, extent and impact of the COVID-19 pandemic, including the governments' responses to the pandemic, on our and our customers' operations, personnel, and business activity (including developments and volatility), as well as COVID-19's impact on the credit quality of our loan portfolio and financial markets and general economic conditions; the effects of our lack of a diversified loan portfolio and concentration in the South Florida market; the impact of current and future interest rates and expectations concerning the actual timing and amount of interest rate movements; competition; our ability to execute business plans; geopolitical developments; legislative and regulatory developments; inflation or deflation; market fluctuations; natural disasters (including pandemics such as COVID-19); potential business uncertainties related to the integration of Marquis Bancorp (MBI), including into our operations critical accounting estimates; and other factors described in our Form 10-K for the year ended December 31, 2019, Form 10-Q for the fiscal quarter ended March 31, 2020 and other filings with the Securities and Exchange Commission. The Company disclaims any obligation to update any of the forward-looking statements included herein to reflect future events or developments or changes in expectations, except as may be required by law.

About Professional Holding Corp. and Professional Bank:

Professional Holding Corp. (NASDAQ:PFHD), is the financial holding company for Professional Bank, a Florida state-chartered bank established in 2008. Professional Bank focuses on providing creative, relationship-driven commercial banking products and services designed to meet the needs of small to medium-sized businesses, the owners and operators of these businesses, other professional entrepreneurs and high net worth individuals. Professional Bank currently operates through a network of nine locations in the regional areas of Miami, Broward, and Palm Beach counties. It also has a Digital Innovation Center located in Cleveland, Ohio. For more information, visit www.myprobank.com. Member FDIC. Equal Housing Lender.

Media Contacts:

Todd Templin or Eric Kalis
BoardroomPR
ttemplin@boardroompr.com/ekalis@boardroompr.com
954-370-8999

SOURCE: Professional Holding Corp.

ReleaseID: 599204