Dogwood State Bank Reports Record Earnings in First Quarter of 2025

Rhea-AI Summary

Dogwood State Bank (OTC: DSBX) reported record Q1 2025 earnings with net income of $7.4 million ($0.39 per diluted share), up from $6.2 million in Q4 2024 and $1.8 million in Q1 2024. The bank's performance showed significant improvements with:

- Net interest margin expansion to 4.20%
- Return on average assets increase to 1.34%
- Efficiency ratio improvement to 59.7%
- Tangible book value per share growth to $11.36

Key financial metrics included net interest income of $21.6 million, non-interest income of $4.8 million, and total assets of approximately $2.29 billion. The bank's asset quality remained strong with nonperforming loans at 0.41% of total loans and an allowance for credit losses at 1.10%.

Positive

• Record quarterly net income of $7.4 million, up 311% year-over-year
• Net interest margin expanded to 4.20%, up from 3.41% year-over-year
• Efficiency ratio improved to 59.7% from 76.4% year-over-year
• SBA lending income showed strong growth with higher loan sale premiums
• Tangible book value per share increased by $0.55 year-over-year

Negative

• Nonperforming loans increased to 0.41% from 0.18% year-over-year
• Higher provision for credit losses at $1.1 million vs $921,000 year-over-year
• Non-interest expenses increased by $4.9 million year-over-year

RALEIGH, N.C., April 17, 2025 /PRNewswire/ -- Dogwood State Bank (OTC: DSBX) ("Dogwood" or the "Bank") announced today its financial results for the three months ended March 31, 2025.

First Quarter 2025 Highlights

• Net income rose to $7.4 million ($0.39 per diluted share) in Q1 2025, compared to $6.2 million ($0.32 per diluted share) in Q4 2024 and $1.8 million ($0.12 per diluted share) in Q1 2024.
  
• Adjusted net income (non-GAAP) rose to $7.5 million ($0.39 per diluted share) in Q1 2025, compared to $6.6 million ($0.35 per diluted share) in Q4 2024 and $2.6 million ($0.17 per diluted share) in Q1 2024.
  
• Return on average assets increased to 1.34% in Q1 2025, compared to 1.13% in Q4 2024 and 0.53% in Q1 2024.
  
• Adjusted return on average assets (non-GAAP) increased to 1.36% in Q1 2025, compared to 1.22% in Q4 2024 and 0.74% in Q1 2024.
  
• Net interest margin expanded to 4.20% in Q1 2025, compared to 4.13% in Q4 2024 and 3.41% in Q1 2024.
  
• Efficiency ratio improved to 59.7% in Q1 2025, compared to 63.5% in Q4 2024 and 76.4% in Q1 2024.
  
• Tangible book value per share grew to $11.36 at March 31, 2025, which was an increase of $0.45 per share since December 31, 2024 and an increase of $0.55 per share since March 31, 2024.

"I am extremely proud of our operating metrics this quarter as we continue to achieve record results," commented Steve Jones, Chief Executive Officer. "Our strong earnings performance reflects solid business fundamentals and disciplined execution. This success is a testament to the dedication and expertise of our team whose continued efforts are driving sustainable value for our shareholders."

Q1 2025 Earnings Performance vs. Q1 2024

Dogwood reported net income in Q1 2025 of $7.4 million, or $0.39 per diluted share, compared to $1.8 million, or $0.12 per diluted share, in Q1 2024. Current quarter earnings benefited from an expanded net interest margin, higher SBA lending income, and the acquisition of Community First Bancorporation ("Community First") in Q3 2024.

Adjusted net income (non-GAAP) in Q1 2025, which excludes the impact of merger & acquisition expenses, increased to $7.5 million, or $0.39 per diluted share, from $2.6 million, or $0.17 per diluted share, in Q1 2024.  Adjusted pre-tax, pre-provision net revenue (non-GAAP) in Q1 2025 was $10.8 million, which was an increase from $4.3 million in Q1 2024.

Net Interest Income

Net interest income was $21.6 million in Q1 2025, an increase from $11.3 million in Q1 2024. The increase was primarily due to significant growth in interest-earning assets over the past year, including an increase in assets from the Community First acquisition, and an expansion in net interest margin.

Total average interest-earning assets increased to $2.09 billion in Q1 2025 from $1.34 billion in Q1 2024. Average loans increased by $706.6 million. Average investment securities balances increased by $50.6 million.

Net interest margin expanded to 4.20% in Q1 2025 from 3.41% in Q1 2024. Lower cost of funds and higher yields on interest-earning assets coupled with a more favorable mix of those assets contributed to the improved net interest margin.

Provision for Credit Losses and Asset Quality

Provision for credit losses was $1.1 million in Q1 2025, an increase from $921 thousand in Q1 2024. The allowance for credit losses to total loans was 1.10% as of Q1 2025, compared to 1.08% as of Q4 2024 and 1.07% Q1 2024.

Nonperforming loans were 0.41% of total loans as of Q1 2025, compared to 0.33% as of Q4 2024, and 0.18% as of Q1 2024. Annualized net charge-offs were 0.11% of average loans in Q1 2025, compared to 0.13% in Q4 2024 and 0.10% in Q1 2024. The majority of charge offs recognized in Q1 2025 were related to unguaranteed portions of U.S. Small Business Administration ("SBA") loans.

Non-Interest Income

Non-interest income was $4.8 million in Q1 2025, an increase from $2.9 million in Q1 2024. This increase was primarily due to $994 thousand of growth in SBA lending income as well as $615 thousand of growth in deposit service charges and debit card income.

SBA lending income rose due to a combination of higher balances of guaranteed loans sold in the secondary market, higher premiums on sales of guaranteed loans sold, and higher servicing fee income.  The weighted average net premium on SBA loans sold in Q1 2025 was 9.25%, an increase from 8.81% in Q1 2024. Guaranteed balances of SBA loans sold totaled $33.6 million in Q1 2025, which was an increase from $20.8 million in Q1 2024.

Deposit service charges and debit card income increased by $615 thousand, which was primarily due to the Community First acquisition.

Non-Interest Expense

Non-interest expense was $15.8 million in Q1 2025, an increase from $10.8 million in Q1 2024. This increase was primarily due to a $2.8 million increase in compensation and benefits expense, which was partially related to higher headcount from the Community First acquisition as well as other investments that have been made in human capital across the Bank to support organic growth. Increases in expense items such as occupancy and equipment (+$622 thousand), software (+$253 thousand), data processing (+$440 thousand), and FDIC insurance (+$176 thousand) were primarily due to the Community First acquisition. Further, amortization of the Community First core deposit intangible, which was recognized at acquisition, added $583 thousand to expense in the quarter.

The increase in expenses was partially offset by a decrease of $830 thousand in merger & acquisition expenses related to the Community First acquisition.

Income Taxes

Dogwood incurred tax expense of $2.2 million in Q1 2025, an increase from $588 thousand in Q1 2024. The effective tax benefit rate was 22.7% in Q1 2025, which was comparable to the effective tax rate of 22.8% in Q1 2024.

Q1 2025 Earnings Performance vs. Q4 2024

Dogwood reported net income in Q1 2025 of $7.4 million, or $0.39 per diluted share, compared to $6.2 million, or $0.32 per diluted share, in Q4 2024. Current quarter earnings benefited from an expanded net interest margin and higher SBA lending income.

Adjusted net income (non-GAAP) in Q1 2025, which excludes the impact of merger & acquisition expenses, increased to $7.5 million, or $0.39 per diluted share, from $6.6 million, or $0.35 per diluted share, in Q4 2024.  Adjusted pre-tax, pre-provision net revenue (non-GAAP) in Q1 2025 was $10.8 million, which was an increase from $9.7 million in Q4 2024.

Net Interest Income

Net interest income was $21.6 million in Q1 2025, an increase from $21.1 million in Q4 2024. The increase was due to growth in interest-earning assets and an expansion in net interest margin.

Total average interest-earning assets increased to $2.09 billion in Q1 2025 from $2.04 billion in Q4 2024. Average loans increased by $59.9 million. Average investment securities balances increased by $11.6 million.

Net interest margin expanded to 4.20% in Q1 2025 from 4.13% in Q4 2024. The primary driver of the improved net interest margin was a drop in cost of funds, which decreased from 2.50% in Q4 2024 to 2.42% in Q1 2025.

Provision for Credit Losses and Asset Quality

Provision for credit losses was $1.1 million in Q1 2025, which was flat compared to Q4 2024. The allowance for credit losses to total loans was 1.10% as of Q1 2025, compared to 1.08% as of Q4 2024.

Nonperforming loans were 0.41% of total loans as of Q1 2025, compared to 0.33% as of Q4 2024. Annualized net charge-offs were 0.11% of average loans in Q1 2025, compared to 0.13% in Q4 2024. The majority of charge offs recognized in Q1 2025 were related to unguaranteed portions of SBA loans.

Non-Interest Income

Non-interest income was $4.8 million in Q1 2025, an increase from $3.7 million in Q4 2024. This increase was primarily due to $972 thousand of growth in SBA lending income. SBA lending income rose due to a combination of higher balances of guaranteed loans sold in the secondary market, higher premiums on sales of guaranteed loans sold, and higher servicing fee income.  The weighted average net premium on SBA loans sold in Q1 2025 was 9.25%, an increase from 8.95% in Q4 2024. Guaranteed balances of SBA loans sold totaled $33.6 million in Q1 2025, which was an increase from $23.2 million in Q4 2024.

Non-Interest Expense

Non-interest expense was $15.8 million in Q1 2025, which was flat compared to Q4 2024. Occupancy and equipment expense was $175 thousand higher partially due to the recent openings of Dogwood's new Greenville, SC and Charleston, SC offices. Other non-interest expenses were also $282 thousand higher due to a variety of items. The increase in expenses was offset by a decrease of $467 thousand in merger & acquisition expenses related to the Community First acquisition.

Income Taxes

Dogwood incurred tax expense of $2.2 million in Q1 2025, an increase from $1.8 million in Q4 2024. The effective tax benefit rate was 22.7% in Q1 2025, which was flat compared to the effective tax rate in Q4 2024.

About Dogwood State Bank 

Dogwood State Bank is a state-chartered community bank headquartered in Raleigh, North Carolina, with approximately $2.29 billion in total assets. Dogwood provides a wide range of banking products and services through its online offerings and twenty-one branch offices in North Carolina, South Carolina, and Eastern Tennessee. Dogwood also specializes in providing lending services to small businesses through its Dogwood State Bank Small Business Lending division. Dogwood is focused on becoming the bank for businesses, business owners, professionals, and their employees and redefining what it means to Bank Local. By leveraging leadership, investing in technology, and committing to personalized, superior customer service, Dogwood is changing the landscape of community banking.

Forward-Looking Statements

Statements made in this press release, other than those concerning historical financial information, may be considered forward-looking statements, which speak only as of the date of this press release and are based on current expectations and involve a number of assumptions. Forward-looking statements can be identified by words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. Our ability to predict results, or the actual effect of future plans or strategies, is inherently uncertain. Factors that could have a material effect on the Bank's operations and future prospects include but are not limited to: the expected growth opportunities or cost savings from the proposed merger (the "merger") of Community First and Community First Bank, Inc. with and into the Bank may not be fully realized or may take longer to realize than expected; the businesses of the Bank and Community First may not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; deposit attrition, operating costs, customer losses and business disruption prior to and following the merger, including adverse effects on relationships with employees and customers, may be greater than expected; the regulatory and shareholder approvals required for the merger may not be obtained; changes in interest rates, general economic and business conditions; legislative/regulatory changes; the monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System; the quality and composition of the Bank's loan and securities portfolios; demand for loan products and other financial services in our market areas; inflation; deposit flows; competition; our implementation of new technologies and ability to develop and maintain secure and reliable electronic systems; changes in the securities markets; and changes in accounting principles, policies and guidelines.  These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. We undertake no obligation to update or clarify these forward-looking statements, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with United States generally accepted accounting principles ("GAAP"). The Bank uses the non-GAAP financial measures discussed herein in its analysis of the Bank's performance. The Bank's management believes that these non-GAAP financial measures enhance comparability of results of operations with prior periods by excluding the impact of items or events that may obscure trends in the Bank's performance. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Please refer to the Non-GAAP Reconciliation table for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measure.

Financial Tables

Dogwood State Bank
Income Statements
				Quarter Ended
(Dollars in thousands, except per share data)				Mar 31 2025	Dec 31 2024	Sep 30 2024	Jun 30 2024	Mar 31 2024
Net interest income				$        21,613	$        21,129	$        18,157	$        12,521	$        11,312
	Provision for credit losses			1,118	1,116	5,857	2,017	921
		Net interest income after provision		20,495	20,013	12,300	10,504	10,391
Non-interest income
	SBA lending			3,191	2,219	2,801	2,717	2,197
	Service charges and debit card income			966	954	811	340	351
	Bank-owned life insurance			349	346	301	219	211
	Securities gains (losses), net			37	60	(8)	(6)	6
	Other			235	160	293	161	85
		Total non-interest income		4,778	3,739	4,198	3,431	2,850
Non-interest expense
	Compensation and benefits			9,329	9,389	8,598	6,683	6,506
	Occupancy and equipment			1,341	1,166	1,025	707	719
	Software			599	561	497	344	346
	Loan related costs			579	570	182	314	290
	Data processing			701	780	648	315	261
	Professional fees			223	157	208	235	225
	FDIC insurance			416	390	287	204	240
	Merger and acquisition expenses			128	595	9,139	562	958
	Amortization of other intangible assets			583	599	408	4	11
	Other			1,854	1,572	1,731	1,102	1,259
		Total non-interest expense		15,753	15,779	22,723	10,470	10,815
		Net income (loss) before income taxes		9,520	7,973	(6,225)	3,465	2,426
Income tax expense (benefit)				2,161	1,812	(1,445)	811	588
		Net income (loss)		$          7,359	$          6,161	$        (4,780)	$          2,654	$          1,838
Pre-Tax, Pre-Provision Net Revenue (PPNR)(1)				$        10,638	$          9,089	$           (368)	$          5,482	$          3,347
Adjusted PPNR(1)				10,766	9,684	8,771	6,044	4,305
Per Share Data:
	Earnings per share (EPS) - basic			$            0.40	$            0.33	$          (0.28)	$            0.18	$            0.13
	Adjusted EPS - basic(1)			0.40	0.36	0.37	0.21	0.18
	Earnings per share - diluted			0.39	0.32	(0.27)	0.17	0.12
	Adjusted EPS - diluted(1)			0.39	0.35	0.36	0.20	0.17
Performance Ratios:
	Return on average assets (ROA)			1.34 %	1.13 %	-0.97 %	0.71 %	0.53 %
	Adjusted ROA(1)			1.36 %	1.22 %	1.30 %	0.83 %	0.74 %
	Return on average equity (ROE)			12.67 %	10.73 %	-9.07 %	6.16 %	4.44 %
	Adjusted ROE(1)			12.84 %	11.53 %	12.09 %	7.16 %	6.22 %
	Return on tangible common equity (ROTCE)(1)			14.03 %	11.96 %	-9.93 %	6.42 %	4.63 %
	Adjusted ROTCE(1)			14.22 %	12.85 %	13.24 %	7.46 %	6.50 %
	Net interest margin			4.20 %	4.13 %	3.93 %	3.53 %	3.41 %
	Efficiency ratio			59.69 %	63.45 %	101.65 %	65.63 %	76.37 %
	Adjusted efficiency ratio(1)			59.21 %	61.06 %	60.76 %	62.11 %	69.60 %
(1) Denotes a non-GAAP measure.  Refer to the non-GAAP reconciliation subsequently included in these materials for a reconciliation to the most directly

 

Dogwood State Bank
Balance Sheets
				Ending Balance
(In thousands, except per share data)				Mar 31 2025	Dec 31 2024	Sep 30 2024	Jun 30 2024	Mar 31 2024
Assets
Cash and due from banks				$              7,309	$            10,582	$              7,622	$              2,514	$              2,353
Interest-earning deposits with banks				112,755	75,612	146,732	59,073	91,365
	Total cash and cash equivalents			120,064	86,194	154,354	61,587	93,718
Investment securities available for sale				118,890	99,411	95,290	58,989	55,984
Investment securities held to maturity				71,044	71,952	73,144	74,404	76,119
Marketable equity securities				432	395	335	329	336
	Total investment securities			190,366	171,758	168,769	133,722	132,439
Loans held for sale				2,438	6,733	7,924	11,030	8,146
Loans				1,855,716	1,819,796	1,757,828	1,236,722	1,148,899
Less allowance for credit losses				(20,491)	(19,698)	(19,143)	(13,349)	(12,344)
	Loans, net			1,835,225	1,800,098	1,738,685	1,223,373	1,136,555
Bank-owned life insurance				45,438	45,089	44,743	27,888	27,669
Premises and equipment, net				36,572	37,180	35,378	19,713	18,838
SBA servicing asset				5,387	4,982	5,026	4,568	4,373
Goodwill				11,688	11,771	11,771	7,016	7,016
Other intangible assets, net				10,791	11,374	11,972	-	4
Other assets				35,934	35,991	36,274	21,854	19,750
		Total assets		$      2,293,903	$      2,211,170	$      2,214,896	$      1,510,751	$      1,448,508
Liabilities and Shareholders' Equity
Deposits:
	Noninterest-bearing			$         463,088	$         474,458	$         483,908	$         379,465	$         302,705
	Interest-bearing			1,420,785	1,334,937	1,357,439	872,430	913,914
			Total deposits	1,883,873	1,809,395	1,841,347	1,251,895	1,216,619
FHLB advances				130,141	130,164	101,686	60,000	40,000
Subordinated debt				9,788	9,708	9,627	-	-
Lease obligations				12,017	12,258	10,491	10,726	10,959
Other liabilities				19,596	19,456	26,503	13,162	11,459
		Total liabilities		2,055,415	1,980,981	1,989,654	1,335,783	1,279,037
Shareholders' equity
	Common stock ($1 par value)			19,013	18,976	18,980	15,541	15,020
	Additional paid-in capital			188,421	188,175	187,981	137,431	135,077
	Retained earnings			35,638	28,280	22,118	26,897	24,244
	Accumulated other comprehensive loss			(4,584)	(5,242)	(3,837)	(4,901)	(4,870)
		Total shareholders' equity		238,488	230,189	225,242	174,968	169,471
		Total liabilities and shareholders' equity		$      2,293,903	$      2,211,170	$      2,214,896	$      1,510,751	$      1,448,508
Per Share Information:
	Shares outstanding			19,013	18,976	18,980	15,541	15,020
	Book value per share			$              12.54	$              12.13	$              11.87	$              11.26	$              11.28
	Tangible book value per share(1)			$              11.36	$              10.91	$              10.62	$              10.81	$              10.82
Capital Ratios:
	Tier 1 leverage			9.95 %	9.84 %	10.58 %	12.14 %	11.75 %
	Common equity Tier 1 capital			11.14 %	10.97 %	10.70 %	12.64 %	13.12 %
	Tier 1 risk-based capital			11.14 %	10.97 %	10.70 %	12.64 %	13.12 %
	Total risk-based capital			12.81 %	12.63 %	12.34 %	13.81 %	14.29 %
	Tangible common equity(1)			9.51 %	9.46 %	9.20 %	11.17 %	11.27 %
(1) Denotes a non-GAAP measure.  Refer to the non-GAAP reconciliation subsequently included in these materials for a reconciliation to the most directly comparable GAAP measure.

 

Dogwood State Bank
Asset Quality Measures
				Quarter Ended
(Dollars in thousands)				Mar 31 2025	Dec 31 2024	Sep 30 2024	Jun 30 2024	Mar 31 2024
Nonperforming Assets:
	Non-accrual loans			$         7,635	$         5,582	$         3,234	$         3,234	$         2,069
	Loans 90 days or more past due and accruing			-	338	-	-	-
	Other real estate owned			104	104	104	104	-
		Total nonperforming assets		$         7,739	$         6,024	$         3,338	$         3,338	$         2,069
Asset Quality Ratios:
	Nonperforming loans/loans			0.41 %	0.33 %	0.18 %	0.26 %	0.18 %
	Nonperforming assets/total assets			0.34 %	0.27 %	0.15 %	0.22 %	0.14 %
	Nonperforming assets/loans and other real estate owned			0.42 %	0.33 %	0.19 %	0.27 %	0.18 %
	Loans 30 days or more past due/loans (excludes non-accruals)			0.77 %	0.67 %	0.29 %	0.21 %	0.41 %
Allowance for Credit Losses (ACL):
	ACL on Loans:
	Balance, beginning of period			$       19,698	$       19,143	$       13,349	$       12,344	$       11,943
	Reclass of Day 1 ACL from fair value discount on acquired PCD loans			-	-	658	-	-
	Loans charged off			(632)	(614)	(738)	(987)	(288)
	Recoveries of loans previously charged off			151	29	79	11	9
		Net loans charged off		(481)	(585)	(659)	(976)	(279)
	Provision for credit losses			1,274	1,140	5,795	1,981	680
	Balance, end of period			$       20,491	$       19,698	$       19,143	$       13,349	$       12,344
	ACL on Off-Balance Sheet Credit Exposures:
	Balance, beginning of period			$         2,571	$         2,595	$         2,336	$         2,300	$         2,059
	Reserve on acquired unfunded loan commitments			-	-	197	-	-
	Provision for credit losses			(156)	(24)	62	36	241
	Balance, end of period			$         2,415	$         2,571	$         2,595	$         2,336	$         2,300
Allowance for Credit Losses Ratios:
	Allowance for credit losses/loans			1.10 %	1.08 %	1.09 %	1.08 %	1.07 %
	Allowance for credit losses/nonperforming loans			268.38 %	332.74 %	591.93 %	412.77 %	596.62 %
	Net charge-offs/average loans (annualized)			0.11 %	0.13 %	0.17 %	0.33 %	0.10 %

 

Dogwood State Bank
Net Interest Margin Analysis
				Quarter Ended
				March 31, 2025						December 31, 2024						March 31, 2024
(Dollars in thousands)				Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate
Interest-Earning Assets:
	Loans			$    1,832,242		$    30,837		6.83 %		$    1,772,350		$    30,524		6.85 %		$    1,125,595		$    18,116		6.47 %
	Investment securities			181,864		1,783		3.98 %		170,307		1,635		3.82 %		131,250		1,029		3.15 %
	Interest-earning deposits with banks			74,364		706		3.85 %		93,153		1,005		4.29 %		78,807		975		4.98 %
		Total interest-earning assets		2,088,470		33,326		6.47 %		2,035,810		33,164		6.48 %		1,335,652		20,120		6.06 %
Non interest-earning assets				131,933						129,999						66,568
		Total assets		$    2,220,403						$    2,165,809						$    1,402,220
Interest-Bearing Liabilities:
	Interest-bearing demand			$        148,704		$          332		0.91 %		$        175,373		$          468		1.06 %		$        124,309		$          293		0.95 %
	Savings and money market			749,088		5,180		2.80 %		759,932		6,006		3.14 %		601,319		6,110		4.09 %
	Time			486,447		4,905		4.09 %		395,409		4,489		4.52 %		170,964		1,967		4.63 %
		Total interest-bearing deposits		1,384,239		10,417		3.05 %		1,330,714		10,963		3.28 %		896,592		8,370		3.75 %
	FHLB advances			94,934		1,024		4.37 %		68,177		797		4.65 %		27,253		368		5.43 %
	Subordinated debt			9,735		209		8.71 %		9,659		209		0.00 %		-		-		0.00 %
	Lease obligations			12,157		63		2.10 %		10,404		66		2.52 %		11,086		70		2.54 %
		Total interest-bearing liabilities		1,501,065		11,713		3.16 %		1,418,954		12,035		3.37 %		934,931		8,808		3.79 %
Non-interest bearing deposits				463,954						496,016						288,518
Other liabilities				19,807						22,497						12,237
Shareholders' equity				235,577						228,342						166,534
		Total liabilities and shareholders' equity		$    2,220,403						$    2,165,809						$    1,402,220
Net interest income and interest rate spread						$    21,613		3.31 %				$    21,129		3.11 %				$    11,314		2.27 %
Net interest margin								4.20 %						4.13 %						3.41 %
Cost of funds								2.42 %						2.50 %						2.90 %
Cost of deposits								2.29 %						2.39 %						2.84 %

 

Dogwood State Bank
Non-GAAP Reconciliation
				Quarter Ended
(In thousands, except per share data)				Mar 31 2025	Dec 31 2024	Sep 30 2024	Jun 30 2024	Mar 31 2024
Net income and EPS:
	Net income (loss) (GAAP)			$             7,359	$             6,161	$          (4,780)	$             2,654	$             1,838
		Adjust for provision on acquired non-PCD loans, net of tax		-		4,111	-	-
		Adjust for merger and acquisition expenses, net of tax		99	458	7,039	433	738
	Adjusted net income (non-GAAP)			$             7,458	$             6,619	$             6,369	$             3,087	$             2,576
	Weighted average common shares outstanding
		Basic		18,502	18,488	17,301	14,905	14,377
		Diluted		18,989	18,978	17,810	15,480	15,075
	EPS (GAAP)
		Basic		$               0.40	$               0.33	$             (0.28)	$               0.18	$               0.13
		Diluted		0.39	0.32	(0.27)	0.17	0.12
	Adjusted EPS (non-GAAP)
		Basic		$               0.40	$               0.36	$               0.37	$               0.21	$               0.18
		Diluted		0.39	0.35	0.36	0.20	0.17
PPNR:
	Net income (loss) (GAAP)			$             7,359	$             6,161	$          (4,780)	$             2,654	$             1,838
	Add:
		Provision for credit losses		1,118	1,116	5,857	2,017	921
		Income tax expense (benefit)		2,161	1,812	(1,445)	811	588
	PPNR (non-GAAP)			10,638	9,089	(368)	5,482	3,347
		Add: merger and acquisition expenses		128	595	9,139	562	958
	Adjusted PPNR (non-GAAP)			$          10,766	$             9,684	$             8,771	$             6,044	$             4,305
ROA:
	Net income (loss) (GAAP)			$             7,359	$             6,161	$          (4,780)	$             2,654	$             1,838
	Adjusted net income (non-GAAP)			7,458	6,619	6,369	3,087	2,576
	Average assets			$    2,220,403	$    2,165,809	$    1,954,902	$    1,494,353	$    1,402,220
	ROA			1.34 %	1.13 %	-0.97 %	0.71 %	0.53 %
	Adjusted ROA (non-GAAP)			1.36 %	1.22 %	1.30 %	0.83 %	0.74 %
ROE and ROTCE:
	Net income (loss) (GAAP)			$             7,359	$             6,161	$          (4,780)	$             2,654	$             1,838
	Adjusted net income (non-GAAP)			7,458	6,619	6,369	3,087	2,576
	Average shareholders' equity (GAAP)			235,577	228,342	209,674	173,356	166,534
		Less: average goodwill and other intangible assets, net		22,922	23,426	18,234	7,018	7,027
	Average tangible common equity (non-GAAP)			212,655	204,916	191,440	166,338	159,507
	ROE			12.67 %	10.73 %	-9.07 %	6.16 %	4.44 %
	Adjusted ROE (non-GAAP)			12.84 %	11.53 %	12.09 %	7.16 %	6.22 %
	ROTCE (non-GAAP)			14.03 %	11.96 %	-9.93 %	6.42 %	4.63 %
	Adjusted ROTCE (non-GAAP)			14.22 %	12.85 %	13.24 %	7.46 %	6.50 %
Efficiency Ratio:
	Non-interest expense (GAAP)			$          15,753	$          15,779	$          22,723	$          10,470	$          10,815
		Less: merger and acquisition expenses		128	595	9,139	562	958
	Adjusted non-interest expense (non-GAAP)			15,625	15,184	13,584	9,908	9,857
	Net interest income			21,613	21,129	18,157	12,521	11,312
	Non-interest income			4,778	3,739	4,198	3,431	2,850
	Total revenue			26,391	24,868	22,355	15,952	14,162
	Efficiency ratio (non-interest expense / total revenue)			59.69 %	63.45 %	101.65 %	65.63 %	76.37 %
	Adjusted efficiency ratio (non-GAAP)			59.21 %	61.06 %	60.76 %	62.11 %	69.60 %
Tangible Book Value per Share and Tangible Common Equity Ratio:
	Shareholders' equity (GAAP)			$        238,488	$        230,189	$        225,242	$        174,968	$        169,471
		Less: goodwill and other intangible assets, net		22,479	23,145	23,743	7,016	7,020
	Tangible common equity (non-GAAP)			216,009	207,044	201,499	167,952	162,451
	Common shares outstanding			19,013	18,976	18,980	15,541	15,020
	Book value per share			$             12.54	$             12.13	$             11.87	$             11.26	$             11.28
	Tangible book value per share (non-GAAP)			11.36	10.91	10.62	10.81	10.82
	Total assets (GAAP)			$    2,293,903	$    2,211,170	$    2,214,896	$    1,510,751	$    1,448,508
		Less: goodwill and other intangible assets, net		22,479	23,145	23,743	7,016	7,020
	Tangible assets (non-GAAP)			2,271,424	2,188,025	2,191,153	1,503,735	1,441,488
	Tangible common equity to tangible assets (non-GAAP)			9.51 %	9.46 %	9.20 %	11.17 %	11.27 %

 

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SOURCE Dogwood State Bank

FAQ

What were Dogwood State Bank's (DSBX) Q1 2025 earnings per share?

DSBX reported earnings of $0.39 per diluted share in Q1 2025, compared to $0.32 in Q4 2024 and $0.12 in Q1 2024.

How did DSBX's net interest margin perform in Q1 2025?

DSBX's net interest margin expanded to 4.20% in Q1 2025, up from 4.13% in Q4 2024 and 3.41% in Q1 2024.

What was DSBX's asset quality in Q1 2025?

Nonperforming loans were 0.41% of total loans, with an allowance for credit losses of 1.10% and annualized net charge-offs of 0.11%.

How much did DSBX's SBA lending grow in Q1 2025?

SBA lending income increased by $994,000 year-over-year, with guaranteed loan sales of $33.6 million at a 9.25% weighted average net premium.