Market Newsdesk

October 28, 2021 8:34 am

Standard Motor Products, Inc. Announces Third Quarter 2021 Results, New Stock Repurchase Program and a Quarterly Dividend

PR Newswire

NEW YORK, Oct. 28, 2021 /PRNewswire/ — Standard Motor Products, Inc. (NYSE: SMP), a leading automotive parts manufacturer and distributor, reported today its consolidated financial results for the three months and nine months ended September 30, 2021.

Consolidated net sales for the third quarter of 2021 were $370.3 million, compared to consolidated net sales of $343.6 million during the comparable quarter in 2020. Earnings from continuing operations for the third quarter of 2021 were $29.2 million or $1.29 per diluted share, compared to $36.2 million or $1.59 per diluted share in the third quarter of 2020. Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for the third quarter of 2021 were $29.7 million or $1.32 per diluted share, compared to $36.2 million or $1.59 per diluted share in the third quarter of 2020.

Consolidated net sales for the nine months ended September 30, 2021, were $988.9 million, compared to consolidated net sales of $845.9 million during the comparable period in 2020. Earnings from continuing operations for the nine months ended September 30, 2021, were $79.3 million or $3.50 per diluted share, compared to $57.7 million or $2.53 per diluted share in the comparable period of 2020. Excluding non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, earnings from continuing operations for the nine months ended September 30, 2021 and 2020 were $80.4 million or $3.54 per diluted share and $57.8 million or $2.53 per diluted share, respectively.

Mr. Eric Sills, Standard Motor Products’ Chief Executive Officer and President, stated, “We are extremely pleased with our third quarter results. We once again posted record sales, generating an increase of nearly 8% over a very strong third quarter of 2020 when business was surging as we emerged from pandemic-related lockdowns. Impressively, this quarter’s sales were up 20% from 2019.

“Year-to-date, our sales are up 17% over 2020, though the first half of last year was adversely impacted by the pandemic. However, the first nine months of 2021 are up 10.3% over 2019.

“By division, Engine Management sales were up 7.7% as compared to 2020, and up nearly 15% vs. 2019, with several contributing factors. We experienced a combination of strong demand, continued success from customer initiatives, new business wins, and the impact of recent acquisitions.

“Our Temperature Control sales were up 7.9% as compared to 2020, and up nearly 35% over 2019. This was one of the longest and hottest summers on record, and our business remained robust throughout the quarter.

“Third quarter earnings are down from the third quarter of 2020, but the 2020 results included many unique non-recurring benefits, related to the Covid-19 pandemic. However, third quarter 2021 earnings did compare favorably on a two-year stack, up almost 30% from a more normalized 2019. Most importantly, year-to-date earnings are at record levels, exceeding both 2020 and 2019 by 40%.”

“As anticipated and stated in our second quarter earnings announcement, we experienced some compression in our gross margin percentage in the third quarter, primarily in the Engine Management division. This was the result of two main factors. First, like many companies, we experienced a surge in various costs, including raw materials, labor and transportation. We will begin passing these costs on in the fourth quarter.

“The second component of our reduced gross margin percentage is related to our growth in non-aftermarket, specialized original equipment business, which we will discuss below. This business, which we believe has great potential for us, has a different margin profile than our aftermarket business – it has lower gross margins, but also lower SG&A expense, and thus generates comparable operating margins.

“Turning to acquisitions, on September 1^st we announced that we had acquired Stabil Operative Group GmbH (“Stabil”), a European manufacturer of original equipment sensors, electronics, and clamping devices for passenger car and commercial vehicle applications. This marked our third acquisition this year, all geared towards expansion into specialized OE channels, including medium and heavy duty vehicles, construction and agricultural equipment, power sports, and other sub-segments. When combined with our legacy business in this arena, our non-aftermarket sales are approaching a run rate of $300 million annually. In addition to expanding beyond our core aftermarket business, it is also providing geographic expansion as we now have meaningful footprints to grow sales in Europe and Asia.

“We are extremely pleased with our efforts in growing our business in this channel. As we combine these different entities, we are able to take advantage of shared customer lists, product portfolios, manufacturing and engineering capabilities, and geographic reach. It is also important to note that much of this business is not beholden to internal combustion engines. Many of the products are either powertrain-neutral, or are geared toward electric and alternative energy vehicles. While we are still in the early days of integrating these businesses, the potential synergies and sales growth opportunities are very exciting.

“As we have continued to grow our business and post record results, we have also looked to return value to our shareholders. To this end, we repurchased shares of our common stock in the amount of $15.4 million during the quarter, bringing total repurchases to $26.5 million for the year so far. Further, our Board of Directors recently authorized an additional $30 million common stock repurchase plan. Finally, our Board also approved payment of a quarterly dividend of 25 cents per share on the common stock outstanding. The dividend will be paid on December 1, 2021 to stockholders of record on November 15, 2021.

“In closing, we are very pleased with our year thus far. We have posted record sales and earnings, have consummated three complementary acquisitions, and have garnered substantial new business wins with existing accounts. Our core market is doing very well and our relationships with our customers are strong. We have made major strides in expanding into new complementary markets with significant upside potential. As such, we are very excited about the future.”

Conference Call

Standard Motor Products, Inc. will hold a conference call at 11:00 AM, Eastern Time, on Thursday, October 28, 2021. The dial-in number is 888-632-3389 (domestic) or 785-424-1674 (international). The playback number is 800-934-8524 (domestic) or 402-220-6999 (international). The participant passcode is 30385.

Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Standard Motor Products cautions investors that any forward-looking statements made by the company, including those that may be made in this press release, are based on management’s expectations at the time they are made, but they are subject to risks and uncertainties that may cause actual results, events or performance to differ materially from those contemplated by such forward looking statements. Among the factors that could cause actual results, events or performance to differ materially from those risks and uncertainties discussed in this press release are those detailed from time-to-time in prior press releases and in the company’s filings with the Securities and Exchange Commission, including the company’s annual report on Form 10-K and quarterly reports on Form 10-Q. By making these forward-looking statements, Standard Motor Products undertakes no obligation or intention to update these statements after the date of this release.

STANDARD MOTOR PRODUCTS, INC.
Consolidated Statements of Operations


(In thousands, except per share amounts)


	THREE MONTHS ENDED		NINE MONTHS ENDED
	SEPTEMBER 30,		SEPTEMBER 30,
	2021	2020	2021	2020
	(Unaudited)		(Unaudited)
NET SALES	$ 370,310	$ 343,609	$ 988,939	$ 845,850

COST OF SALES	265,105	235,861	700,678	603,349

GROSS PROFIT	105,205	107,748	288,261	242,501

SELLING, GENERAL & ADMINISTRATIVE EXPENSES	66,509	59,497	183,316	163,698
RESTRUCTURING AND INTEGRATION EXPENSES	166	250	166	464
OTHER INCOME (EXPENSE), NET	8	(37)	8	(31)

OPERATING INCOME	38,538	47,964	104,787	78,308

OTHER NON-OPERATING INCOME, NET	780	514	2,247	592

INTEREST EXPENSE	652	462	1,356	2,107

EARNINGS FROM CONTINUING OPERATIONS BEFORE TAXES	38,666	48,016	105,678	76,793

PROVISION FOR INCOME TAXES	9,481	11,804	26,315	19,118

EARNINGS FROM CONTINUING OPERATIONS	29,185	36,212	79,363	57,675

LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES	(5,122)	(7,587)	(7,139)	(9,456)

NET EARNINGS	24,063	28,625	72,224	48,219

NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST	13	–	32	–

NET EARNINGS ATTRIBUTABLE TO SMP (a)	$ 24,050	$ 28,625	$ 72,192	$ 48,219


NET EARNINGS ATTRIBUTABLE TO SMP
EARNINGS FROM CONTINUING OPERATIONS	$ 29,172	$ 36,212	$ 79,331	$ 57,675
LOSS FROM DISCONTINUED OPERATION, NET OF INCOME TAXES	(5,122)	(7,587)	(7,139)	(9,456)
TOTAL	$ 24,050	$ 28,625	$ 72,192	$ 48,219



NET EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SMP

BASIC EARNINGS FROM CONTINUING OPERATIONS	$ 1.32	$ 1.62	$ 3.57	$ 2.58
DISCONTINUED OPERATION	(0.23)	(0.34)	(0.32)	(0.42)
NET EARNINGS PER COMMON SHARE – BASIC	$ 1.09	$ 1.28	$ 3.25	$ 2.16


DILUTED EARNINGS FROM CONTINUING OPERATIONS	$ 1.29	$ 1.59	$ 3.50	$ 2.53
DISCONTINUED OPERATION	(0.22)	(0.33)	(0.32)	(0.41)
NET EARNINGS PER COMMON SHARE – DILUTED	$ 1.07	$ 1.26	$ 3.18	$ 2.12


WEIGHTED AVERAGE NUMBER OF COMMON SHARES	22,090,195	22,349,093	22,201,398	22,372,466
WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE SHARES	22,543,781	22,758,458	22,678,114	22,795,426

(a) “SMP” refers to Standard Motor Products, Inc. and subsidiaries.

STANDARD MOTOR PRODUCTS, INC.
Segment Revenues and Operating Income


(In thousands)


	THREE MONTHS ENDED				NINE MONTHS ENDED
	SEPTEMBER 30,				SEPTEMBER 30,
	2021		2020		2021		2020
	(Unaudited)				(Unaudited)
*Revenues*
Ignition, Emission Control, Fuel & Safety
Related System Products	$ 208,443		$ 190,891		$ 574,595		$ 498,204
Wire and Cable	38,708		38,663		117,790		105,621
Engine Management	247,151		229,554		692,385		603,825

Compressors	$ 75,080		$ 70,785		$ 178,031		$ 141,011
Other Climate Control Parts	43,995		39,608		109,988		93,216
Temperature Control	119,075		110,393		288,019		234,227

All Other	4,084		3,662		8,535		7,798
Revenues	$ 370,310		$ 343,609		$ 988,939		$ 845,850

*Gross Margin*
Engine Management	$ 66,907	27.1%	$ 72,361	31.5%	$ 199,509	28.8%	$ 175,296	29.0%
Temperature Control	33,815	28.4%	32,212	29.2%	78,468	27.2%	60,828	26.0%
All Other	4,676		3,175		10,562		6,377
Subtotal	$ 105,398	28.5%	$ 107,748	31.4%	$ 288,539	29.2%	$ 242,501	28.7%
One-Time Acquisition Costs	(193)	-0.1%	–	0.0%	(278)	0.0%	–	0.0%
Gross Margin	$ 105,205	28.4%	$ 107,748	31.4%	$ 288,261	29.1%	$ 242,501	28.7%


*Selling, General & Administrative*
Engine Management	$ 38,702	15.7%	$ 35,665	15.5%	$ 109,721	15.8%	$ 100,237	16.6%
Temperature Control	17,120	14.4%	15,571	14.1%	44,952	15.6%	40,568	17.3%
All Other	10,029		8,261		27,315		22,893
Subtotal	$ 65,851	17.8%	$ 59,497	17.3%	$ 181,988	18.4%	$ 163,698	19.4%
One-Time Acquisition Costs	658	0.2%	–	0.0%	1,328	0.1%	–	0.0%
Selling, General & Administrative	$ 66,509	18.0%	$ 59,497	17.3%	$ 183,316	18.5%	$ 163,698	19.4%


*Operating Income*
Engine Management	$ 28,012	11.3%	$ 36,696	16.0%	$ 89,510	12.9%	$ 75,059	12.4%
Temperature Control	16,695	14.0%	16,641	15.1%	33,516	11.6%	20,260	8.6%
All Other	(5,160)		(5,086)		(16,475)		(16,516)
Subtotal	39,547	10.7%	48,251	14.0%	106,551	10.8%	78,803	9.3%
One-time Acquisition Costs	(851)	-0.2%	–	0.0%	(1,606)	-0.2%	–	0.0%
Restructuring & Integration	(166)	0.0%	(250)	-0.1%	(166)	0.0%	(464)	-0.1%
Other Income (Expense), Net	8	0.0%	(37)	0.0%	8	0.0%	(31)	0.0%
Operating Income	$ 38,538	10.4%	$ 47,964	14.0%	$ 104,787	10.6%	$ 78,308	9.3%

STANDARD MOTOR PRODUCTS, INC.
Reconciliation of GAAP and Non-GAAP Measures




(In thousands, except per share amounts)
		THREE MONTHS ENDED			NINE MONTHS ENDED
		SEPTEMBER 30,			SEPTEMBER 30,
		2021	2020		2021	2020
	(Unaudited)			(Unaudited)
EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP

GAAP EARNINGS FROM CONTINUING OPERATIONS		$ 29,172	$ 36,212		$ 79,331	$ 57,675

RESTRUCTURING AND INTEGRATION EXPENSES		166	250		166	464
ONE-TIME ACQUISITION COSTS		851	–		1,606	–
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD		(259)	(235)		(259)	(235)
INCOME TAX EFFECT RELATED TO RECONCILING ITEMS		(265)	(65)		(461)	(121)
NON-GAAP EARNINGS FROM CONTINUING OPERATIONS		$ 29,665	$ 36,162		$ 80,383	$ 57,783


DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SMP

GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS		$ 1.29	$ 1.59		$ 3.50	$ 2.53

RESTRUCTURING AND INTEGRATION EXPENSES		0.01	0.01		–	0.02
ONE-TIME ACQUISITION COSTS		0.04	–		0.07	–
CERTAIN TAX CREDITS AND PRODUCTION DEDUCTIONS FINALIZED IN PERIOD		(0.01)	(0.01)		(0.01)	(0.01)
INCOME TAX EFFECT RELATED TO RECONCILING ITEMS		(0.01)	–		(0.02)	(0.01)

NON-GAAP DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS		$ 1.32	$ 1.59		$ 3.54	$ 2.53


OPERATING INCOME

GAAP OPERATING INCOME		$ 38,538	$ 47,964		$ 104,787	$ 78,308

ONE-TIME ACQUISITION COSTS		851	–		1,606	–
RESTRUCTURING AND INTEGRATION EXPENSES		166	250		166	464
OTHER (INCOME) EXPENSE, NET		(8)	37		(8)	31

NON-GAAP OPERATING INCOME		$ 39,547	$ 48,251		$ 106,551	$ 78,803


MANAGEMENT BELIEVES THAT EARNINGS FROM CONTINUING OPERATIONS AND DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS WHICH ARE ATTRIBUTABLE TO SMP, AND OPERATING INCOME, AS ADJUSTED FOR SPECIAL ITEMS, ARE NON-GAAP MEASUREMENTS AND ARE MEANINGFUL TO INVESTORS BECAUSE THEY PROVIDE A VIEW OF THE COMPANY WITH RESPECT TO ONGOING OPERATING RESULTS. SPECIAL ITEMS REPRESENT SIGNIFICANT CHARGES OR CREDITS THAT ARE IMPORTANT TO AN UNDERSTANDING OF THE COMPANY’S OVERALL OPERATING RESULTS IN THE PERIODS PRESENTED. SUCH NON-GAAP MEASUREMENTS ARE NOT RECOGNIZED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND SHOULD NOT BE VIEWED AS AN ALTERNATIVE TO GAAP MEASURES OF PERFORMANCE.

STANDARD MOTOR PRODUCTS, INC.
Condensed Consolidated Balance Sheets



(In thousands)


	SEPTEMBER 30,	DECEMBER 31,
	2021	2020
	(Unaudited)

ASSETS

CASH	$ 33,144	$ 19,488

ACCOUNTS RECEIVABLE, GROSS	231,066	203,861
ALLOWANCE FOR DOUBTFUL ACCOUNTS	6,645	5,822
ACCOUNTS RECEIVABLE, NET	224,421	198,039

INVENTORIES	414,657	345,502
UNRETURNED CUSTOMER INVENTORY	23,367	19,632
OTHER CURRENT ASSETS	15,268	15,875

TOTAL CURRENT ASSETS	710,857	598,536

PROPERTY, PLANT AND EQUIPMENT, NET	100,787	89,105
OPERATING LEASE RIGHT-OF-USE ASSETS	42,458	29,958
GOODWILL	131,549	77,837
OTHER INTANGIBLES, NET	108,312	54,004
DEFERRED INCOME TAXES	34,790	44,770
INVESTMENT IN UNCONSOLIDATED AFFILIATES	42,123	40,507
OTHER ASSETS	24,857	21,823

TOTAL ASSETS	$ 1,195,733	$ 956,540


LIABILITIES AND STOCKHOLDERS’ EQUITY


NOTES PAYABLE	$ 128,938	$ 10,000
CURRENT PORTION OF OTHER DEBT	2,941	135
ACCOUNTS PAYABLE	128,808	100,018
ACCRUED CUSTOMER RETURNS	59,972	40,982
ACCRUED CORE LIABILITY	23,650	22,014
ACCRUED REBATES	43,110	46,437
PAYROLL AND COMMISSIONS	40,725	35,938
SUNDRY PAYABLES AND ACCRUED EXPENSES	50,227	47,078

TOTAL CURRENT LIABILITIES	478,371	302,602

OTHER LONG-TERM DEBT	68	97
NONCURRENT OPERATING LEASE LIABILITIES	33,246	22,450
ACCRUED ASBESTOS LIABILITIES	57,532	55,226
OTHER LIABILITIES	27,964	25,929

TOTAL LIABILITIES	597,181	406,304

TOTAL SMP STOCKHOLDERS’ EQUITY	587,018	550,236
NONCONTROLLING INTEREST	11,534	–
TOTAL STOCKHOLDERS’ EQUITY	598,552	550,236

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 1,195,733	$ 956,540

STANDARD MOTOR PRODUCTS, INC.
Condensed Consolidated Statements of Cash Flows



(In thousands)


	NINE MONTHS ENDED
	SEPTEMBER 30,
	2021	2020
	(Unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES

NET EARNINGS	$ 72,224	$ 48,219
ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
DEPRECIATION AND AMORTIZATION	20,160	19,313
OTHER	13,904	19,098
CHANGE IN ASSETS AND LIABILITIES:
ACCOUNTS RECEIVABLE	(15,343)	(83,878)
INVENTORIES	(52,742)	53,330
ACCOUNTS PAYABLE	24,228	(13,117)
PREPAID EXPENSES AND OTHER CURRENT ASSETS	2,324	5,634
SUNDRY PAYABLES AND ACCRUED EXPENSES	18,905	31,725
OTHER	(4,522)	(1,719)
NET CASH PROVIDED BY OPERATING ACTIVITIES	79,138	78,605


CASH FLOWS FROM INVESTING ACTIVITIES

ACQUISITIONS OF AND INVESTMENTS IN BUSINESSES	(124,663)	–
CAPITAL EXPENDITURES	(19,406)	(13,170)
OTHER INVESTING ACTIVITIES	29	14
NET CASH USED IN INVESTING ACTIVITIES	(144,040)	(13,156)


CASH FLOWS FROM FINANCING ACTIVITIES

NET CHANGE IN DEBT	121,854	(44,852)
PURCHASE OF TREASURY STOCK	(26,518)	(8,726)
DIVIDENDS PAID	(16,678)	(5,615)
OTHER FINANCING ACTIVITIES	455	86
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	79,113	(59,107)


EFFECT OF EXCHANGE RATE CHANGES ON CASH	(555)	67
NET INCREASE IN CASH AND CASH EQUIVALENTS	13,656	6,409
CASH AND CASH EQUIVALENTS at beginning of Period	19,488	10,372
CASH AND CASH EQUIVALENTS at end of Period	$ 33,144	$ 16,781

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SOURCE Standard Motor Products, Inc.

October 28, 2021 8:34 am

ePlus Joins Forces with Houston Habitat for Humanity to Build Two Homes

PR Newswire

HERNDON, Va., Oct. 28, 2021 /PRNewswire/ — ePlus inc. (NASDAQ NGS: PLUS) today announced that a team of ePlus employee volunteers partnered with Houston Habitat for Humanity in the building of two single family homes in Houston, Texas.

The Houston build marks the second engagement ePlus has undertaken with Habitat for Humanity and follows on a successful partnership in Loudoun County, Virginia, where ePlus teams built the 25^th Anniversary House in 2018. Originally scheduled for Fall 2020, the Houston build was postponed due to the pandemic and was finally successfully completed on October 21, 2021.

For this engagement ePlus volunteers were split into two equal groups to provide support for two simultaneous builds occurring in the same neighborhood. Teams were tasked with building walls, raising walls, installing hurricane straps and clips and more.

“As ePlus has grown over our 30-year history, so too has our commitment to giving back to the communities that have supported our success,” said Mark Marron, president and CEO of ePlus. “We are honored to have had the chance to work in partnership with Habitat for Humanity not only on this build in Houston, where we maintain an office location, but on a previous one based near our headquarters in Northern Virginia. We look forward to our continued collaboration with Habitat in the future and wish the families who are receiving these beautiful houses happiness in their new homes.”

“We are very thankful to ePlus and its volunteers for their commitment to helping us create a world where everyone has a decent place to live,” said Allison Hay, Executive Director, Houston Habitat for Humanity. “Together, with the support and engagement of organizations like ePlus, we are working to empower people to build a better future for themselves and their families.”

ePlus, its employees and its partners contribute in many ways to charitable organizations that support individuals facing challenges from homelessness and hunger to blood cancers and access to education. A sampling of our collective efforts, which include a combination of employee giving, corporate matching, and volunteerism, can be found on the ePlus website at https://www.eplus.com/about-us/corporate-social-responsibility.

About Houston Habitat For Humanity

Committed to a world where everyone has a decent place to live, Houston Habitat for Humanity’s work includes new home construction, home rehabilitation and disaster repair, infrastructure development for new communities, neighborhood revitalization and community building in the city of Houston. Houston Habitat has built more than 1,050 homes in 11 Houston neighborhoods, including the Fifth Ward and northeast and southeast quadrants. In addition to building, the organization has also repaired homes throughout Houston due to natural disasters; since Hurricane Harvey Houston Habitat has repaired more than 550 homes for families who are without resources to make repairs.

About ePlus inc.

ePlus is a leading consultative technology solutions provider that helps customers imagine, implement, and achieve more from their technology. With the highest certifications from top technology partners and lifecycle services expertise across key areas including security, cloud, data center, collaboration, networking and emerging technologies, ePlus transforms IT from a cost center to a business enabler. Founded in 1990, ePlus has more than 1,500 associates serving a diverse set of customers in the U.S., Europe, and Asia-Pac. The Company is headquartered at 13595 Dulles Technology Drive, Herndon, VA, 20171. For more information, visit www.eplus.com, call 888-482-1122, or email [email protected]. Connect with ePlus on Facebook, LinkedIn, Twitter and Instagram. ePlus, Where Technology Means More^®.

ePlus^®, Where Technology Means More^®, and ePlus products referenced herein are either registered trademarks or trademarks of ePlus inc. in the United States and/or other countries. The names of other companies, products, and services mentioned herein may be the trademarks of their respective owners.

Statements in this press release that are not historical facts may be deemed to be “forward-looking statements.” Actual and anticipated future results may vary materially due to certain risks and uncertainties, including, without limitation, the duration and impact of COVID-19 and the efficacy of vaccine roll-outs, which could materially adversely affect our financial condition and results of operations and has resulted worldwide in governmental authorities imposing numerous unprecedented measures to try to contain the virus that has impacted and may further impact our workforce and operations, the operations of our customers, and those of our respective vendors, suppliers, and partners; national and international political instability fostering uncertainty and volatility in the global economy including an economic downturn, an increase in tariffs or adverse changes to trade agreements, exposure to fluctuation in foreign currency rates, interest rates and downward pressure on prices; our ability to successfully perform due diligence and integrate acquired businesses; the possibility of goodwill impairment charges in the future; reduction of vendor incentive programs; significant adverse changes in, reductions in, or losses of relationships with one or more of our largest volume customers or vendors; the demand for and acceptance of, our products and services; our ability to adapt our services to meet changes in market developments; our ability to implement comprehensive plans to achieve customer account coverage for the integration of sales forces, cost containment, asset rationalization, systems integration and other key strategies; our ability to reserve adequately for credit losses; our ability to secure our electronic and other confidential information or that of our customers or partners and remain secure during a cyber-security attack; future growth rates in our core businesses; our ability to protect our intellectual property; the impact of competition in our markets; the possibility of defects in our products or catalog content data; our ability to adapt to changes in the IT industry and/or rapid change in product standards; our ability to realize our investment in leased equipment; our ability to hire and retain sufficient qualified personnel; and other risks or uncertainties detailed in our reports filed with the Securities and Exchange Commission. All information set forth in this press release is current as of the date of this release and ePlus undertakes no duty or obligation to update this information.

View original content to download multimedia:https://www.prnewswire.com/news-releases/eplus-joins-forces-with-houston-habitat-for-humanity-to-build-two-homes-301410327.html

SOURCE ePlus inc.

October 28, 2021 8:34 am

Universal Technical Institute to Release Fourth Quarter and Full Year Fiscal Year 2021 Results on November 17, 2021

PR Newswire

PHOENIX, Oct. 28, 2021 /PRNewswire/ — Universal Technical Institute, Inc. (NYSE: UTI), the nation’s leading provider of transportation technician training, today announced that it plans to report results for the fourth quarter and fiscal year ended September 30, 2021 on Wednesday, November 17, 2021, after market close. Jerome Grant, chief executive officer, and Troy Anderson, chief financial officer, will host a conference call at 4:30 p.m. Eastern Time on the same day to discuss the financial results and operating performance.

To participate in the live call, investors are invited to dial (844) 881-0138 (domestic) or (412) 317-6790 (international). A live webcast of the call will be available via the Universal Technical Institute investor relations website at https://investor.uti.edu. Please go to the website at least 10 minutes early to register, download and install any necessary audio software. The conference call webcast will be archived for fourteen days at https://investor.uti.edu or the telephone replay can be accessed through December 1, 2021, by dialing (877) 344-7529 (domestic) or (412) 317-0088 (international) and entering passcode 10161230.

About Universal Technical Institute, Inc.

Founded in 1965 and with more than 225,000 graduates in its history, Universal Technical Institute, Inc. (NYSE: UTI) is the nation’s leading provider of technical training for automotive, diesel, collision repair, motorcycle and marine technicians, and offers welding technology and computer numerical control (CNC) machining programs. The company has built partnerships with industry leaders, outfits its state-of-the-industry facilities with current technology, and delivers training that is aligned with employer needs. Through its network of 12 campuses nationwide, UTI offers post-secondary programs under the banner of several well-known brands, including Universal Technical Institute (UTI), Motorcycle Mechanics Institute and Marine Mechanics Institute (MMI) and NASCAR Technical Institute (NASCAR Tech). The company is headquartered in Phoenix, Arizona.

For more information, visit www.uti.edu. Like UTI on www.facebook.com/UTI or follow UTI on Twitter @UTITweet, @MMITweet, and @NASCARTechUTI.

Media Contact:

Mark Brenner

Vice President, Corporate Affairs & External Communications
Universal Technical Institute, Inc.
(623) 445-0872

Investor Relations Contact:

Robert Winters or Wyatt Turk
Alpha IR Group
(312) 445-2870
[email protected]

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SOURCE Universal Technical Institute, Inc.

October 28, 2021 8:33 am

Beam Global Added to the CALeVIP Incentive Program for Expanding EV Charging Infrastructure

SAN DIEGO, Oct. 28, 2021 (GLOBE NEWSWIRE) — Beam Global, (Nasdaq: BEEM, BEEMW), the leading provider of innovative sustainable technology for electric vehicle (EV) charging, outdoor media and energy security, announced that Beam Global has been added to the California Electric Vehicle Infrastructure Project (CALeVIP) EV charging program. Funded by the California Energy Commission (CEC) and implemented by the Center for Sustainable Energy (CSE), CALeVIP provides incentives for EV charger infrastructure and works with local partners to develop and implement projects that meet current and future regional EV needs. The statewide efforts aim to provide a streamlined process to fill the significant gaps in charging availability.

The four Beam product offerings that have been added to the CALeVIP Eligible Equipment List are:

EV ARC™ 2020 with ChargePoint™ CT 4000 Series—single plug
EV ARC™ 2020 with ChargePoint™ CT 4000 Series—dual plug
EV ARC™ 2020 with Enel x JuiceBox^® Pro—single plug
EV ARC™ 2020 with Enel x JuiceBox^® Pro—dual plug

“EV ARC off-grid charging systems are unique and especially suited to the CALeVIP program’s mission to streamline the process of expanding EV charging infrastructure. CALeVIP is a flagship program and serves as a model for other states in accelerating the national charging infrastructure buildout,” said Desmond Wheatley, CEO of Beam Global. “Inclusion of the EV ARC in the CALeVIP program is further validation of our products and technology. We commend the CEC and CSE for accommodating this invented-in-California innovation of off-grid renewable charging, demonstrating forward-thinking as California continues to lead in the electrification of transportation. These sorts of incentives and contracts we have in place with the federal government and states like California make it easy for our customers to take advantage of our products and get the EV charging they need without the risks, hassles and costs of construction and electrical projects.”

EV ARC™ systems are rapidly deployed, requiring no electrical work, no construction and no utility bill. Each EV ARC™ fits in a standard parking space and is equipped with the factory installed EV charging station(s) of the customer’s choice, arriving at their site ready to charge vehicles. Off-grid and solar-powered, each EV ARC™ system generates and stores its own clean electricity and delivers that electricity to power EVs, day or night, and during inclement weather and power outages. The system can include an optional Emergency Power Panel for first responder use during blackouts or in locations where there is no utility connection available.

CALeVIP and its regional incentive projects are made possible through a grant by the California Energy Commission’s Clean Transportation Program that supports innovations in transportation and fuel technologies. CALeVIP is currently funded for $149 million through Energy Commission funds. Co-Funding Partner contributions currently total $36,257,515. The CALeVIP program, implemented by the Center for Sustainable Energy, addresses regional needs for electric vehicle (EV) charging infrastructure throughout California, while supporting state goals to improve air quality, combat climate change and reduce petroleum use. For more program information visit https://calevip.org/.

About Beam Global

Beam Global is a CleanTech leader that produces innovative, sustainable technology for electric vehicle (EV) charging, outdoor media, and energy security, without the construction, disruption, risks and costs of grid-tied solutions. Products include the patented EV ARC™ and Solar Tree^® lines with BeamTrak™ patented solar tracking, and ARC Technology™ energy storage, along with EV charging, outdoor media and disaster preparedness packages.

The company develops, patents, designs, engineers and manufactures unique and advanced renewably energized products that save customers time and money, help the environment, empower communities and keep people moving. Based in San Diego, the company produces Made in America products. Beam Global is listed on Nasdaq under the symbols BEEM and BEEMW (formerly Envision Solar, EVSI, EVSIW). For more information visit BeamForAll.com, LinkedIn, YouTube and Twitter

Forward-Looking Statements

This Beam Global Press Release may contain forward-looking statements. All statements in this Press Release other than statements of historical facts are forward-looking statements. Forward-looking statements are generally accompanied by terms or phrases such as “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “target,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may,” or other words and similar expressions that convey the uncertainty of future events or results.

Media Contact

Next PR
+1 813-526-1195
[email protected]

October 28, 2021 8:33 am

TowneBank Reports Third Quarter 2021 Earnings

SUFFOLK, Va., Oct. 28, 2021 (GLOBE NEWSWIRE) — TowneBank (the “Company” or “Towne”) (NASDAQ: TOWN) today reported earnings for the quarter ended September 30, 2021 of $50.40 million, or $0.69 per diluted share, compared to $34.46 million, or $0.48 per diluted share, for the quarter ended September 30, 2020.

“TowneBank had another successful quarter highlighted by solid organic loan growth despite headwinds from historically low levels of line utilization. Our credit quality metrics are excellent, and our Company is poised to capitalize on growth opportunities across our markets. The strong momentum in our fee-based businesses continued during the quarter as we explore additional strategies to accelerate noninterest income growth,” said G. Robert Aston, Jr., Executive Chairman.

Highlights for Third Quarter 2021 Compared to Third Quarter 2020:

Total revenues were $170.08 million, a decrease of $22.06 million, or 11.48%. This year-over-year decrease was driven by a 2020 gain on the sale of Red Sky Travel Insurance (“Red Sky”), totaling $17.63 million.
Pre-provision, pre-tax, net revenues (non-GAAP), were $63.65 million, an increase of $7.37 million, or 13.09%, excluding the 2020 gain on sale of Red Sky.
Loans held for investment were $9.30 billion, a decrease of $0.47 billion, or 4.84%, from September 30, 2020, and $0.13 billion, or 1.34%, from June 30, 2021. Excluding the decline in loans from the Paycheck Protection Program (“PPP”), loans held for investment increased $378.69 million, or 4.37%, compared to September 30, 2020, and $147.41 million, or 6.57%, on an annualized basis, from the linked quarter. Total loans at September 30, 2021, September 30, 2020, and June 30, 2021 included $0.25 billion, $1.10 billion, and $0.52 billion, respectively, of PPP loans.
Total deposits were $13.01 billion, an increase of $1.31 billion, or 11.18% compared to prior year and $0.05 billion, or 1.51% on an annualized basis, from June 30, 2021.
Noninterest bearing deposits increased by 20.85%, to $5.39 billion, representing 41.45% of total deposits. Compared to the linked quarter, noninterest bearing deposits increased 11.17%, on an annualized basis.
Annualized return on common shareholders’ equity was 10.68% and annualized return on average tangible common shareholders’ equity was 15.27% (non-GAAP).
Net interest margin for the quarter was 2.76% and taxable equivalent net interest margin (non-GAAP) was 2.78%.
Nonperforming assets were $13.86 million, or 0.09% of total assets, compared to $28.74 million, or 0.19%, at September 30, 2020, primarily due to the sale of several foreclosed properties.
Effective tax rate of 22.73% in the quarter compared to 18.53% in third quarter 2020, and 20.03% in the linked quarter.

“While facing continued pressure from the current rate environment on net interest margins, our Company delivered another strong performance for the quarter. Our diversified revenue model has afforded us the opportunity to patiently deploy excess liquidity and the recent rise in rates should provide more attractive entry points potentially increasing security purchases over the next several quarters,” stated J. Morgan Davis, Chief Executive Officer.

Quarterly Net Interest Income Compared to Third Quarter 2020:

Net interest income was $100.44 million compared to $96.76 million as of September 30, 2020.
Tax-equivalent net interest margin (non-GAAP) was 2.78%, including purchase accounting accretion of 4 basis points and PPP interest and fees of 15 basis points, compared to 2.72%, including purchase accounting accretion of 5 basis points and a 17 basis point increase in PPP interest and fees, for third quarter 2020.
On an average basis, loans held for investment, with a yield of 4.24%, represented 64.01% of earning assets at September 30, 2021 compared to a yield of 4.22% and 68.38% of earning assets in the third quarter of 2020. Excluding PPP loans, loan yields were 4.06% in third quarter 2021 compared to 4.30% in third quarter 2020.
Interest and fee income on PPP loans was $7.77 million in third quarter 2021, compared to $10.02 million in the linked quarter, and $9.82 million in third quarter 2020.
Total cost of deposits decreased to 0.19% from 0.46% at September 30, 2020.
Average interest-earning assets totaled $14.43 billion at September 30, 2021 compared to $14.26 billion at September 30, 2020, an increase of 1.20%.
Average interest-bearing liabilities totaled $8.24 billion, a decrease of $0.98 billion from prior year.

Quarterly Provision for Credit Losses:

The quarterly provision for credit losses for on-balance-sheet loans was a benefit of $1.60 million compared to a provision expense of $28.26 million one year ago and a benefit of $8.08 million in the linked quarter.
The third quarter 2021 included a release in the allowance for credit losses of $0.95 million that was driven by a combination of net recoveries and a slight improvement in the quarterly economic forecast, offset by modest core loan growth.
Net loan recoveries were $0.64 million compared to $0.33 million one year prior and $0.14 million in the linked quarter. The ratio of net loan recoveries to average loans on an annualized basis was (0.03)% in third quarter 2021, (0.01)% in third quarter 2020, and (0.01)% in the linked quarter.
The provision expense for credit losses on off-balance-sheet commitments was $0.01 million compared to $3.50 million in the third quarter of 2020, and a benefit of $1.89 million in the linked quarter.
The allowance for credit losses on loans represented 1.15% of total loans at September 30, 2021 and June 30, 2021, compared to 1.22% at September 30, 2020. Excluding PPP loans, which are fully government guaranteed, the allowance for credit losses (non-GAAP) was 1.18%, compared to 1.22% at June 30, 2021 and 1.37% at September 30, 2020. The allowance for credit losses on loans was 12.68 times nonperforming loans compared to 9.67 times at June 30, 2021 and 7.31 times at September 30, 2020.
Expected loss estimates are subject to change based on continuing review of models and assumptions, portfolio performance, changes in forecasted macroeconomic conditions and loan mix, which could result in material changes to the reserve in future periods.

Quarterly Noninterest Income Compared to Third Quarter 2020:

Total noninterest income was $69.63 million compared to $95.38 million in 2020, a decrease of $25.74 million, or 26.99%. Residential mortgage banking income decreased $12.11 million, while real estate brokerage and property management income increased $2.98 million. In the third quarter of 2020, noninterest income included a gain of $17.63 million on the sale of Red Sky, a travel insurance joint venture.
Residential mortgage banking recorded income of $25.42 million compared to $37.53 million in third quarter 2020. Margins declined 4 basis points between quarters and loan volume decreased to $1.31 billion in third quarter 2021 compared to $1.79 billion in 2020. Residential purchase activity comprised 77.45% of production volume in the third quarter of 2021 compared to 61.21% in the prior year quarter. In addition to the declines related to margin and volume, the income statement impact of derivative instruments in third quarter 2021 was a net loss of $0.77 million compared to a net gain on derivative instruments of $3.33 million in third quarter 2020. Included in the third quarter 2021 derivative instrument loss was a loss on interest rate-locks of $1.67 million, compared to a gain of $3.28 million in third quarter 2020.
Margins on residential mortgages declined 41 basis points from the peak in December 2020. Management expects margin compression to continue through the end of the year to more normalized levels.
Total Insurance segment revenue decreased $17.24 million, or 45.06%, to $21.03 million in third quarter 2021 compared to 2020. This decline is attributable to the sale of Red Sky mid-third quarter 2020 and the gain on sale totaling $17.63 million that was recorded in other income in that quarter. After distributions to noncontrolling interests, Towne retained $6.52 million of the pre-tax gain. Partially offsetting the decline was the acquisition of a property and casualty insurance agency in December 2020, which brought in $0.73 million in additional revenue in third quarter 2021.
Property management fee revenue increased 37.95%, or $2.89 million, to $10.50 million compared to third quarter 2020. Demand for vacation rentals remains strong, keeping levels high. In July 2021, the Company acquired Venture Resorts, the largest cabin rental company in the Smoky Mountains of Tennessee, which brought in an additional $3.0 million in management fee revenue in the quarter.

Qua

rterly Noninterest Expense Compared to Third Quarter 2020:

Total noninterest expense was $104.09 million compared to $101.98 million in 2020, an increase of $2.11 million, or 2.06%. The higher level of expenses was attributable to increases in advertising and marketing expense of $2.0 million, software expense of $0.64 million, and data processing expense of $0.49 million.
Advertising and marketing expense increases, related primarily to our Realty segment, were driven by production based advertising programs in our property management companies and consumer mortgage advertising in our residential mortgage operations.
Increased costs associated with our core banking platform resulted in higher software expenses, and higher credit card fees on vacation property reservation activities drove the increase in data processing expense.
We expect the fourth quarter 2021 noninterest expense run rate to be consistent with the current quarter.

Consolidated Balance Sheet Highlights:

Total assets were $15.81 billion for the quarter ended September 30, 2021, a marginal increase compared to $15.80 billion at June 30, 2021. Total assets increased $1.02 billion, or 6.87%, from $14.80 billion at September 30, 2020. The year-over-year increase was driven by higher liquidity levels due to deposit growth.
Loans held for investment decreased $0.47 billion, or 4.84%, compared to prior year and $0.13 billion, or 1.34%, compared the linked quarter. Excluding PPP loans of $0.25 billion in third quarter 2021, $1.10 billion in third quarter 2020, and $0.52 billion in the linked quarter, loans held for investment increased $378.69 million, or 4.37%, compared to prior year, and $147.41 million, or 1.66%, compared to June 30, 2021, or 6.57% on an annualized basis.
Average loans held for investment, excluding PPP loans, were $8.88 billion in the third quarter of 2021, an increase of $220.80 million, or 2.55%, compared to prior year. In the linked quarter comparison, average loans held for investment, excluding PPP loans, increased 0.47%, or $41.38 million, 1.86% on an annualized basis.
Unamortized fee income related to PPP loans was $7.50 million at September 30, 2021.
Mortgage loans held for sale decreased $237.17 million, or 35.45%, compared to the prior year and $122.60 million, or 22.11%, compared to the linked quarter.
Total deposits increased $1.31 billion, or 11.18%, compared to the prior year and $0.05 billion, or 0.38%, compared to the linked quarter.
Total borrowings decreased $0.55 billion, or 53.05%, from prior year and $0.10 billion, or 17.40%, compared to the linked quarter.

Investment Securities:

Total investment securities were $1.59 billion compared to $1.49 billion at June 30, 2021 and $1.38 billion at September 30, 2020. The weighted average duration of the portfolio at September 30, 2021 was 4.0 years. The carrying value of the available for sale debt securities portfolio included $32.06 million, $61.43 million, and $42.18 million in net unrealized gains at September 30, 2021, September 30, 2020, and June 30, 2021, respectively.

Loans and Asset Quality:

Total loans held for investment were $9.30 billion at September 30, 2021 compared to $9.42 billion at June 30, 2021 and $9.77 billion at September 30, 2020.
Nonperforming assets were $13.86 million, or 0.09% of total assets, compared to $28.74 million, or 0.19%, at September 30, 2020.
Nonperforming loans were 0.09% of period end loans compared to 0.17% at September 30, 2020.
Foreclosed property decreased to $5.41 million from $11.69 million at September 30, 2020.
At September 30, 2021, we had $50.95 million in loan modifications made in accordance with section 4013 of the CARES Act, a decline of $1.82 billion, or 97.27%, from a reported peak of $1.87 billion at April 30, 2020.

Deposits and Borrowings:

Total deposits were $13.01 billion compared to $12.96 billion at June 30, 2021 and $11.70 billion at September 30, 2020.
Total loans held for investment to deposits were 71.44% compared to 72.69% at June 30, 2021 and 83.47% at September 30, 2020.
Non-interest bearing deposits were 41.45% of total deposits at September 30, 2021 compared to 40.44% at June 30, 2021 and 38.14% at September 30, 2020.
Total borrowings were $0.49 billion compared to $0.59 billion at June 30, 2021 and $1.04 billion at September 30, 2020.

Capital:

Common equity tier 1 capital ratio of 12.53%.
Tier 1 leverage capital ratio of 9.18%.
Tier 1 risk-based capital ratio of 12.69%.
Total risk-based capital ratio of 15.85%.
Book value per common share was $25.91 compared to $25.51 at June 30, 2021 and $23.83 at September 30, 2020.
Tangible book value per common share (non-GAAP) was $18.92 compared to $18.70 at June 30, 2021 and $17.06 at September 30, 2020.

About TowneBank:

Founded in 1999, TowneBank is a company built on relationships, offering a full range of banking and other financial services, with a mission of serving others and enriching lives. Dedicated to a culture of caring, Towne values all employees and members by embracing their diverse talents, perspectives, and experiences.

Today, TowneBank operates over 40 banking offices throughout Hampton Roads and Central Virginia, as well as Northeastern and Central North Carolina – serving as a local leader in promoting the social, cultural, and economic growth in each community. Towne offers a competitive array of business and personal banking solutions, delivered with only the highest ethical standards. Experienced local bankers providing a higher level of expertise and personal attention with local decision-making are key to the TowneBank strategy. TowneBank has grown its capabilities beyond banking to provide expertise through its controlled divisions and subsidiaries that include Towne Investment Group, Towne Wealth Management, Towne Insurance Agency, Towne Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire Hathaway HomeServices Towne Realty, Towne 1031 Exchange, LLC, and Towne Vacations. With total assets of $15.81 billion as of September 30, 2021, TowneBank is one of the largest banks headquartered in Virginia.

Non-GAAP Financial Measures:

This press release contains certain financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Such non-GAAP financial measures include the following: fully tax-equivalent net interest margin, core operating earnings, core net income, tangible book value per common share, total risk-based capital ratio, tier one leverage ratio, tier one capital ratio, and the tangible common equity to tangible assets ratio. Management uses these non-GAAP financial measures to assess the performance of TowneBank’s core business and the strength of its capital position. Management believes that these non-GAAP financial measures provide meaningful additional information about TowneBank to assist investors in evaluating operating results, financial strength, and capitalization. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant charges for credit costs and other factors. These non-GAAP financial measures should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The computations of the non-GAAP financial measures used in this presentation are referenced in a footnote or in the appendix to this presentation.

Forward-Looking Statements:

This press release contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead represent only the beliefs, expectations, or opinions of TowneBank and its management regarding future events, many of which, by their nature, are inherently uncertain. Forward-looking statements may be identified by the use of such words as: “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional terms, such as “will,” “would,” “should,” “could,” “may,” “likely,” “probably,” or “possibly.” These statements may address issues that involve significant risks, uncertainties, estimates, and assumptions made by management. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include the impacts of the ongoing the impact of the COVID-19 pandemic and the associated efforts to limit its spread; competitive pressures in the banking industry that may increase significantly; changes in the interest rate environment that may reduce margins and/or the volumes and values of loans made or held as well as the value of other financial assets held; changes in the credit worthiness of customers and the possible impairment of the collectability of loans; general economic conditions, either nationally or regionally, that may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit or other services; changes in the legislative or regulatory environment, including changes in accounting standards and tax laws, that may adversely affect our business; costs or difficulties related to the integration of the businesses we have acquired may be greater than expected; expected cost savings associated with pending or recently completed acquisitions may not be fully realized or realized within the expected time frame; cybersecurity threats or attacks, the implementation of new technologies, and the ability to develop and maintain reliable electronic systems; our competitors may have greater financial resources and develop products that enable them to compete more successfully; changes in business conditions; changes in the securities market; and changes in our local economy with regard to our market area. Any forward-looking statements made by us or on our behalf speak only as of the date they are made or as of the date indicated, and we do not undertake any obligation to update forward-looking statements as a result of new information, future events, or otherwise. For additional information on factors that could materially influence forward-looking statements included in this report, see the “Risk Factors” in TowneBank’s Annual Report on Form 10-K for the year ended December 31, 2020 and related disclosures in other filings that have been, or will be, filed by TowneBank with the Federal Deposit Insurance Corporation.

Media contact:

G. Robert Aston, Jr., Executive Chairman, 757-638-6780
J. Morgan Davis, Chief Executive Officer, 757-673-1673

Investor contact:

William B. Littreal, Chief Financial Officer, 757-638-6813

TOWNEBANK
Selected Financial Highlights (unaudited)
(dollars in thousands, except per share data)

		Three Months Ended
		September 30,			June 30,			March 31,			December 31,			September 30,
		2021			2021			2021			2020			2020
Income and Performance Ratios:
	Total Revenue	$	170,076		$	167,321		$	182,509		$	171,848		$	192,135
	Net income	52,743			58,002			72,631			53,891			50,715
	Net income available to common shareholders	50,400			55,803			68,995			50,082			34,464
	Pre-provision, pre-tax, net revenues ^(non-GAAP)	63,647			59,728			81,577			62,107			56,278
	Net income per common share – diluted	0.69			0.77			0.95			0.69			0.48
	Book value per common share	25.91			25.51			24.78			24.31			23.83
	Book value per common share – tangible ^(non-GAAP)	18.92			18.70			17.94			17.46			17.06
	Return on average assets	1.27		%	1.48		%	1.92		%	1.35		%	0.89		%
	Return on average assets – tangible ^(non-GAAP)	1.37		%	1.59		%	2.05		%	1.46		%	0.97		%
	Return on average equity	10.59		%	12.21		%	15.56		%	11.26		%	7.85		%
	Return on average equity – tangible ^(non-GAAP)	15.09		%	17.38		%	22.19		%	16.28		%	11.66		%
	Return on average common equity	10.68		%	12.31		%	15.70		%	11.36		%	7.91		%
	Return on average common equity – tangible ^(non-GAAP)	15.27		%	17.57		%	22.45		%	16.48		%	11.79		%
	Noninterest income as a percentage of total revenue	40.94		%	39.55		%	45.21		%	41.45		%	49.64		%
Regulatory Capital Ratios (1):
	Common equity tier 1	12.53		%	12.42		%	12.15		%	11.87		%	11.75		%
	Tier 1	12.69		%	12.57		%	12.30		%	12.04		%	11.91		%
	Total	15.85		%	15.76		%	15.59		%	15.42		%	15.35		%
	Tier 1 leverage ratio	9.18		%	9.44		%	9.54		%	8.99		%	8.89		%
Asset Quality:
	Allowance for credit losses on loans to nonperforming loans	12.68x			9.67x			9.09x			10.74x			7.31x
	Allowance for credit losses on loans to period end loans	1.15		%	1.15		%	1.19		%	1.25		%	1.22		%
	Allowance for credit losses on loans to period end loans excluding PPP loans ^(non-GAAP)	1.18		%	1.22		%	1.31		%	1.37		%	1.37		%
	Nonperforming loans to period end loans	0.09		%	0.12		%	0.13		%	0.12		%	0.17		%
	Nonperforming assets to period end assets	0.09		%	0.10		%	0.11		%	0.11		%	0.19		%
	Net charge-offs (recoveries) to average loans (annualized)	(0.03		)%	(0.01		)%	0.03		%	—		%	(0.01		)%
	Net charge-offs (recoveries)	$	(644	)	$	(137	)	$	669		$	109		$	(328	)

	Nonperforming loans	$	8,451		$	11,178		$	12,768		$	11,188		$	16,295
	Former bank premises	—			—			750			750			750
	Foreclosed property	5,409			4,041			3,748			4,276			11,695
	Total nonperforming assets	$	13,860		$	15,219		$	17,266		$	16,214		$	28,740
	Loans past due 90 days and still accruing interest	$	143		$	1,584		$	108		$	528		$	19
	Allowance for credit losses on loans	$	107,177		$	108,130		$	116,077		$	120,157		$	119,058
Mortgage Banking:
	Loans originated, mortgage	$	939,272		$	1,050,663		$	1,187,595		$	1,257,963		$	1,292,801
	Loans originated, joint venture	370,865			403,864			417,177			429,848			498,100
	Total loans originated	$	1,310,137		$	1,454,527		$	1,604,772		$	1,687,811		$	1,790,901
	Number of loans originated	3,917			4,514			5,164			5,481			5,817
	Number of originators	219			222			229			228			224
	Purchase %	77.45		%	76.95		%	53.45		%	59.76		%	61.21		%
	Loans sold	$	1,394,166		$	1,485,057		$	1,601,480		$	1,845,926		$	1,833,590
	Rate lock asset	$	6,087		$	7,760		$	12,522		$	11,781		$	10,480
	Gross realized gain on sales and fees as a % of loans originated	3.61		%	3.64		%	4.01		%	4.02		%	3.65		%
Other Ratios:
	Net interest margin	2.76		%	2.92		%	3.04		%	2.97		%	2.70		%
	Net interest margin-fully tax equivalent ^(non-GAAP)	2.78		%	2.94		%	3.06		%	2.98		%	2.72		%
	Average earning assets/total average assets	91.89		%	91.89		%	91.46		%	91.59		%	92.09		%
	Average loans/average deposits	71.69		%	78.22		%	82.71		%	83.42		%	86.29		%
	Average noninterest deposits/total average deposits	40.40		%	40.21		%	38.39		%	39.61		%	37.76		%
	Period end equity/period end total assets	12.02		%	11.83		%	12.04		%	12.20		%	11.82		%
	Efficiency ratio^(non-GAAP)	59.58		%	61.46		%	52.11		%	60.02		%	57.36		%
	(1) Current reporting period regulatory capital ratios are preliminary

TOWNEBANK
Selected Data (unaudited)
(dollars in thousands)

Investment Securities										% Change
	Q3			Q3			Q2			Q3 21 vs.			Q3 21 vs.
*Available-for-sale securities, at fair value*	2021			2020			2021			Q3 20			Q2 21
U.S. agency securities	$	207,949		$	167,275		$	206,151		24.32		%	0.87		%
U.S. Treasury notes	1,007			1,006			1,013			0.10		%	(0.59	)	%
Municipal securities	350,980			292,792			334,633			19.87		%	4.89		%
Trust preferred and other corporate securities	31,591			24,236			31,680			30.35		%	(0.28	)	%
Mortgage-backed securities issued by GSE and GNMA	969,017			825,378			881,078			17.40		%	9.98		%
Allowance for credit losses	(142		)	(4		)	(134		)	3,450.00		%	5.97		%
Total	$	1,560,402		$	1,310,683		$	1,454,421		19.05		%	7.29		%
*Gross unrealized gains (losses) reflected in financial statements*
Total gross unrealized gains	$	40,906		$	62,206		$	65,152		(34.24	)	%	(37.21	)	%
Total gross unrealized losses	(8,845		)	(773		)	(22,968		)	1,044.24		%	(61.49	)	%
Net unrealized gains (losses) and other adjustments on AFS securities	$	32,061		$	61,433		$	42,184		(47.81	)	%	(24.00	)	%
*Held-to-maturity securities, at amortized cost*
Trust preferred corporate securities	$	2,285		$	2,333		$	2,297		(2.06	)	%	(0.52	)	%
Municipal securities	5,074			4,992			5,053			1.64		%	0.42		%
Mortgage-backed securities issued by GSE and GNMA	7,539			9,806			8,039			(23.12	)	%	(6.22	)	%
Allowance for credit losses	(94		)	(90		)	(97		)	4.44		%	(3.09	)	%
Total	$	14,804		$	17,041		$	15,292		(13.13	)	%	(3.19	)	%

*Gross unrealized gains (losses) not reflected in financial statements*
Total gross unrealized gains	$	1,591		$	1,971		$	1,708		(19.28	)	%	(6.85	)	%
Total gross unrealized losses	—			—			—			—		%	—		%
Net unrealized gains (losses) in HTM securities	$	1,591		$	1,971		$	1,708		(19.28	)	%	(6.85	)	%

Loans Held For Investment (1)										% Change
	Q3			Q3			Q2			Q3 21 vs.			Q3 21 vs.
	2021			2020			2021			Q3 20			Q2 21
Real estate – construction and development	$	1,005,592		$	1,143,202		$	1,029,811		(12.04	)	%	(2.35	)	%
Commercial real estate – owner occupied	1,463,000			1,378,443			1,445,328			6.13		%	1.22		%
Commercial real estate – non owner occupied	2,647,625			2,338,532			2,597,405			13.22		%	1.93		%
Real estate – multifamily	363,733			289,270			343,764			25.74		%	5.81		%
Residential 1-4 family	1,233,125			1,229,732			1,166,898			0.28		%	5.68		%
HELOC	389,974			430,803			390,726			(9.48	)	%	(0.19	)	%
Commercial and industrial business (C&I)	1,253,972			2,144,875			1,529,788			(41.54	)	%	(18.03	)	%
Government	471,037			354,926			479,664			32.71		%	(1.80	)	%
Indirect	348,864			270,371			310,492			29.03		%	12.36		%
Consumer loans and other	120,643			190,416			129,702			(36.64	)	%	(6.98	)	%
Total	$	9,297,565		$	9,770,570		$	9,423,578		(4.84	)	%	(1.34	)	%
(1) Paycheck Protection Program loans totaling $0.25 billion, $1.10 billion, and $0.52 billion, primarily in C&I, are included in Q3 21, Q3 20, and Q2 21, respectively.
Deposits										% Change
	Q3			Q3			Q2			Q3 21 vs.			Q3 21 vs.
	2021			2020			2021			Q3 20			Q2 21
Noninterest-bearing demand	$	5,394,952		$	4,464,178		$	5,243,073		20.85		%	2.90		%
Interest-bearing:
Demand and money market accounts	5,681,181			4,642,482			5,373,146			22.37		%	5.73		%
Savings	366,165			312,444			349,552			17.19		%	4.75		%
Certificates of deposits	1,571,752			2,285,859			1,998,828			(31.24	)	%	(21.37	)	%
Total	$	13,014,050		$	11,704,963		$	12,964,599		11.18		%	0.38		%

TOWNEBANK
Average Balances, Yields and Rate Paid (unaudited)
(dollars in thousands)

	Three Months Ended								Three Months Ended								Three Months Ended
	September 30, 2021								June 30, 2021								September 30, 2020
				Interest			Average					Interest			Average					Interest			Average
	Average			Income/			Yield/		Average			Income/			Yield/		Average			Income/			Yield/
	Balance			Expense			Rate		Balance			Expense			Rate		Balance			Expense			Rate
Assets:
Loans (net of unearned income and deferred costs), excluding nonaccrual loans (1)	$	9,238,922		$	98,732		4.24	%	$	9,604,805		$	101,490		4.24	%	$	9,752,746		$	103,401		4.22	%
Taxable investment securities	1,421,347			6,560			1.85	%	1,351,922			6,476			1.92	%	1,206,679			6,726			2.23	%
Tax-exempt investment securities	125,523			487			1.55	%	128,094			434			1.36	%	144,999			779			2.15	%
Total securities	1,546,870			7,047			1.82	%	1,480,016			6,910			1.87	%	1,351,678			7,505			2.22	%
Interest-bearing deposits	3,179,010			1,182			0.15	%	2,327,310			619			0.11	%	2,523,644			632			0.10	%
Loans held for sale	468,323			3,406			2.91	%	503,706			3,711			2.95	%	634,309			4,587			2.89	%
Total earning assets	14,433,125			110,367			3.03	%	13,915,837			112,730			3.25	%	14,262,377			116,125			3.24	%
Less: allowance for credit losses	(108,478		)						(116,025		)						(95,594		)
Total nonearning assets	1,382,351								1,344,076								1,320,369
Total assets	$	15,706,998							$	15,143,888							$	15,487,152
Liabilities and Equity:
Interest-bearing deposits
Demand and money market	$	5,486,788		$	2,095		0.15	%	$	5,179,907		$	2,004		0.16	%	$	4,311,920		$	2,663		0.25	%
Savings	358,739			533			0.59	%	346,177			528			0.61	%	304,753			555			0.72	%
Certificates of deposit	1,842,948			3,400			0.73	%	1,816,283			4,612			1.02	%	2,417,772			9,747			1.60	%
Total interest-bearing deposits	7,688,475			6,028			0.31	%	7,342,367			7,144			0.39	%	7,034,445			12,965			0.73	%
Borrowings	300,505			412			0.54	%	476,122			565			0.47	%	1,931,120			2,841			0.58	%
Subordinated debt, net	249,405			2,962			4.75	%	249,260			2,962			4.75	%	248,807			2,962			4.76	%
Total interest-bearing liabilities	8,238,385			9,402			0.45	%	8,067,749			10,671			0.53	%	9,214,372			18,768			0.81	%
Demand deposits	5,212,271								4,937,754								4,268,443
Other noninterest-bearing liabilities	367,891								304,793								257,304
Total liabilities	13,818,547								13,310,296								13,740,119
Shareholders’ equity	1,888,451								1,833,592								1,747,033
Total liabilities and equity	$	15,706,998							$	15,143,888							$	15,487,152
Net interest income (tax-equivalent basis)				$	100,965							$	102,059							$	97,357
Reconciliation of Non-GAAP Financial Measures
Tax-equivalent basis adjustment				(522		)						(915		)						(598		)
Net interest income (GAAP)				$	100,443							$	101,144							$	96,759

Interest rate spread (2)(3)							2.58	%							2.72	%							2.43	%
Interest expense as a percent of average earning assets							0.26	%							0.31	%							0.52	%
Net interest margin (tax equivalent basis) (3)(4)							2.78	%							2.94	%							2.72	%
Total cost of deposits							0.19	%							0.23	%							0.46	%

(1) September 30, 2021, September 30, 2020, and June 30, 2021 includes average PPP balances of $0.36 billion, $1.10 billion and $0.77 billion, and related interest and fee income of $7.77 million, $9.82 million, and $10.02 million, respectively.
(2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax equivalent.
(3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax equivalent.
(4) Non-GAAP.

TOWNEBANK
Average Balances, Yields and Rate Paid (unaudited)
(dollars in thousands)

	Nine Months Ended								Nine Months Ended								Nine Months Ended September 30,
	September 30, 2021								September 30, 2020								2021 Compared with 2020
				Interest			Average					Interest			Average
	Average			Income/			Yield/		Average			Income/			Yield/		Increase			Change Due to
	Balance			Expense			Rate		Balance			Expense			Rate		(Decrease)			Rate			Volume
Assets:
Loans (net of unearned income and deferred costs), excluding nonaccrual loans (1)	$	9,495,456		$	302,182		4.25	%	$	9,309,256		$	306,622		4.40	%	$	(4,440	)	$	(10,384	)	$	5,944
Taxable investment securities	1,359,366			19,640			1.93	%	1,253,783			23,304			2.48	%	(3,664		)	(5,507		)	1,843
Tax-exempt investment securities	131,106			1,462			1.49	%	140,248			2,476			2.35	%	(1,014		)	(862		)	(152		)
Total securities	1,490,472			21,102			1.89	%	1,394,031			25,780			2.47	%	(4,678		)	(6,369		)	1,691
Interest-bearing deposits	2,426,468			2,218			0.12	%	615,466			2,168			0.47	%	50			(2,552		)	2,602
Loans held for sale	502,758			10,477			2.78	%	477,964			11,386			3.18	%	(909		)	(1,478		)	569
Total earning assets	13,915,154			335,979			3.23	%	11,796,717			345,956			3.92	%	(9,977		)	(20,783		)	10,806
Less: allowance for credit losses	(115,100		)						(73,538		)
Total nonearning assets	1,351,796								2,264,295
Total assets	$	15,151,850							$	13,987,474
Liabilities and Equity:
Interest-bearing deposits
Demand and money market	$	5,192,658		$	6,175		0.16	%	$	3,898,642		$	10,472		0.36	%	$	(4,297	)	$	(7,044	)	$	2,747
Savings	345,739			1,583			0.61	%	290,684			1,702			0.78	%	(119		)	(408		)	289
Certificates of deposit	1,872,393			13,963			1.00	%	2,451,715			34,925			1.90	%	(20,962		)	(14,008		)	(6,954		)
Total interest-bearing deposits	7,410,790			21,721			0.39	%	6,641,041			47,099			0.95	%	(25,378		)	(21,460		)	(3,918		)
Borrowings	445,399			1,798			0.53	%	1,452,652			8,661			0.78	%	(6,863		)	(2,169		)	(4,694		)
Subordinated debt, net	249,261			8,854			4.74	%	248,660			8,885			4.76	%	(31		)	(52		)	21
Total interest-bearing liabilities	8,105,450			32,373			0.53	%	8,342,353			64,645			1.04	%	(32,272		)	(23,681		)	(8,591		)
Demand deposits	4,880,493								3,687,791
Other noninterest-bearing liabilities	325,639								252,337
Total liabilities	13,311,582								12,282,481
Shareholders’ equity	1,840,268								1,704,993
Total liabilities and equity	$	15,151,850							$	13,987,474
Net interest income (tax-equivalent basis)				$	303,606							$	281,311				$	22,295		$	2,898		$	19,397
Reconciliation of Non-GAAP Financial Measures
Tax-equivalent basis adjustment				(2,029		)						(1,781		)			(248		)
Net interest income (GAAP)				$	301,577							$	279,530				$	22,047

Interest rate spread (2)(4)							2.69	%							2.88	%
Interest expense as a percent of average earning assets							0.31	%							0.73	%
Net interest margin (tax equivalent basis) (3)(4)							2.92	%							3.19	%
Total cost of deposits							0.24	%							0.61	%

(1) September 30, 2021 and September 30, 2020 includes average PPP balances of $0.48 billion and $0.64 billion and related interest income of $29.42 million and $15.65 million.
(2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax equivalent.
(3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax equivalent.
(4) Non-GAAP.

TOWNEBANK
Consolidated Balance Sheets
(dollars in thousands, except share data)


	September 30,			December 31,
	2021			2020
	(unaudited)			(audited)
ASSETS
Cash and due from banks	$	75,370		$	41,514
Interest-bearing deposits at FRB – Richmond	3,155,039			1,795,241
Interest-bearing deposits in financial institutions	33,506			27,532
Total Cash and Cash Equivalents	3,263,915			1,864,287
Securities available for sale, at fair value (amortized cost of $1,528,483 and $1,310,250, and allowance for credit losses of $142 and $348 at September 30, 2021 and December 31, 2020, respectively.)	1,560,402			1,368,224
Securities held to maturity, at amortized cost (fair value $16,489 and $18,469 at September 30, 2021 and December 31, 2020, respectively.)	14,898			16,512
Less: allowance for credit losses	(94		)	(97		)
Securities held to maturity, net of allowance for credit losses	14,804			16,415
Other equity securities	6,621			6,492
FHLB stock	13,146			30,135
Total Securities	1,594,973			1,421,266
Mortgage loans held for sale	431,846			540,798
Loans, net of unearned income and deferred costs	9,297,565			9,629,068
Less: allowance for credit losses	(107,177		)	(120,157		)
Net Loans	9,190,388			9,508,911
Premises and equipment, net	270,810			260,242
Goodwill	457,187			452,328
Other intangible assets, net	50,839			45,533
BOLI	249,862			246,109
Other assets	301,552			286,970
TOTAL ASSETS	$	15,811,372		$	14,626,444

LIABILITIES AND EQUITY
Deposits:
Noninterest-bearing demand	$	5,394,952		$	4,374,566
Interest-bearing:
Demand and money market accounts	5,681,181			4,819,604
Savings	366,165			330,091
Certificates of deposit	1,571,752			2,048,905
Total Deposits	13,014,050			11,573,166
Advances from the FHLB	155,537			456,038
Subordinated debt, net	249,503			249,055
FRB PPP lending facility	—			182,852
Repurchase agreements and other borrowings	82,413			67,786
Total Borrowings	487,453			955,731
Other liabilities	409,435			313,719
TOTAL LIABILITIES	13,910,938			12,842,616
Preferred stock, authorized and unissued shares – 2,000,000	—			—
Common stock, $1.667 par: 150,000,000 shares authorized
72,683,529 and 72,667,541 shares issued at
September 30, 2021 and December 31, 2020, respectively	121,163			121,132
Capital surplus	1,049,367			1,046,642
Retained earnings	690,960			557,889
Common stock issued to deferred compensation trust, at cost
905,484 and 873,486 shares at September 30, 2021 and December 31, 2020, respectively	(18,076		)	(16,969		)
Deferred compensation trust	18,076			16,969
Accumulated other comprehensive income (loss)	21,597			41,184
TOTAL SHAREHOLDERS’ EQUITY	1,883,087			1,766,847
Noncontrolling interest	17,347			16,981
TOTAL EQUITY	1,900,434			1,783,828
TOTAL LIABILITIES AND EQUITY	$	15,811,372		$	14,626,444

TOWNEBANK
Consolidated Statements of Income (unaudited)
(dollars in thousands, except per share data)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
INTEREST INCOME:
Loans, including fees	$	98,258		$	102,869		$	300,268		$	305,070
Investment securities	7,000			7,440			20,987			25,553
Interest-bearing deposits in financial institutions and federal funds sold	1,182			632			2,218			2,168
Mortgage loans held for sale	3,405			4,587			10,477			11,385
Total interest income	109,845			115,528			333,950			344,176
INTEREST EXPENSE:
Deposits	6,028			12,966			21,721			47,099
Advances from the FHLB	247			1,901			1,017			6,990
Subordinated debt, net	2,962			2,962			8,854			8,885
Repurchase agreements and other borrowings	165			940			781			1,672
Total interest expense	9,402			18,769			32,373			64,646
Net interest income	100,443			96,759			301,577			279,530
PROVISION FOR CREDIT LOSSES	(1,582		)	31,598			(15,665		)	65,559
Net interest income after provision for credit losses	102,025			65,161			317,242			213,971
NONINTEREST INCOME:
Residential mortgage banking income, net	25,422			37,531			88,359			74,662
Insurance commissions and other title fees and income, net	17,398			17,468			52,055			51,973
Real estate brokerage and property management income, net	14,283			11,301			43,201			29,020
Service charges on deposit accounts	2,524			1,986			7,104			6,314
Credit card merchant fees, net	1,660			1,506			4,630			3,793
BOLI	2,301			1,605			5,361			6,295
Other income	6,045			22,278			16,367			31,268
Net gain/(loss) on investment securities	—			1,701			1,252			9,632
Total noninterest income	69,633			95,376			218,329			212,957
NONINTEREST EXPENSE:
Salaries and employee benefits	61,230			61,408			181,030			174,201
Occupancy expense	7,656			8,396			23,286			23,124
Furniture and equipment	3,513			3,247			10,647			10,451
Amortization – intangibles	2,750			2,851			8,192			8,702
Software expense	4,209			3,572			12,896			10,556
Data processing	3,603			3,113			10,255			8,622
Professional fees	2,227			2,637			6,826			8,677
Advertising and marketing	3,865			1,870			10,090			7,440
Other expenses	15,033			14,887			43,583			38,121
Total noninterest expense	104,086			101,981			306,805			289,894
Income before income tax expense and noncontrolling interest	67,572			58,556			228,766			137,034
Provision for income tax expense	14,829			7,841			45,388			21,492
Net income	$	52,743		$	50,715		$	183,378		$	115,542
Net income attributable to noncontrolling interest	(2,343		)	(16,251		)	(8,177		)	(20,089		)
Net income attributable to TowneBank	$	50,400		$	34,464		$	175,201		$	95,453
Per common share information
Basic earnings	$	0.70		$	0.48		$	2.42		$	1.32
Diluted earnings	$	0.69		$	0.48		$	2.41		$	1.32
Cash dividends declared	$	0.20		$	0.18		$	0.38		$	0.54

TOWNEBANK
Consolidated Balance Sheets – Five Quarter Trend
(dollars in thousands, except share data)


	September 30,			June 30,			March 31,			December 31,			September 30,
	2021			2021			2021			2020			2020
	(unaudited)			(unaudited)			(unaudited)			(audited)			(unaudited)
ASSETS
Cash and due from banks	$	75,370		$	117,797		$	141,545		$	41,514		$	114,604
Interest-bearing deposits at FRB – Richmond	3,155,039			2,970,490			1,936,458			1,795,241			1,670,186
Interest-bearing deposits in financial institutions	33,506			31,971			30,031			27,532			24,890
Total Cash and Cash Equivalents	3,263,915			3,120,258			2,108,034			1,864,287			1,809,680
Securities available for sale	1,560,402			1,454,421			1,418,006			1,368,224			1,310,683
Securities held to maturity	14,898			15,389			15,980			16,512			17,131
Less: allowance for credit losses	(94		)	(97		)	(97		)	(97		)	(90		)
Securities held to maturity, net of allowance for credit losses	14,804			15,292			15,883			16,415			17,041
Other equity securities	6,621			6,395			6,355			6,492			6,497
FHLB stock	13,146			16,909			16,909			30,135			41,829
Total Securities	1,594,973			1,493,017			1,457,153			1,421,266			1,376,050
Mortgage loans held for sale	431,846			554,447			582,905			540,798			669,020
Loans, net of unearned income and deferred costs	9,297,565			9,423,578			9,734,583			9,629,068			9,770,570
Less: allowance for credit losses	(107,177		)	(108,130		)	(116,077		)	(120,157		)	(119,058		)
Net Loans	9,190,388			9,315,448			9,618,506			9,508,911			9,651,512
Premises and equipment, net	270,810			265,644			261,831			260,242			256,909
Goodwill	457,187			452,328			452,328			452,328			446,725
Other intangible assets, net	50,839			42,271			44,808			45,533			45,781
BOLI	249,862			249,213			247,655			246,109			244,103
Other assets	301,552			311,209			306,176			286,970			295,637
TOTAL ASSETS	$	15,811,372		$	15,803,835		$	15,079,396		$	14,626,444		$	14,795,417
LIABILITIES AND EQUITY
Deposits:
Noninterest-bearing demand	$	5,394,952		$	5,243,074		$	4,840,678		$	4,374,566		$	4,464,178
Interest-bearing:
Demand and money market accounts	5,681,181			5,373,146			5,062,461			4,819,604			4,642,482
Savings	366,165			349,552			342,554			330,091			312,444
Certificates of deposit	1,571,752			1,998,828			1,893,951			2,048,905			2,285,859
Total Deposits	13,014,050			12,964,600			12,139,644			11,573,166			11,704,963
Advances from the FHLB	155,537			255,706			255,872			456,038			731,202
Subordinated debt, net	249,503			249,353			249,204			249,055			248,906
FRB PPP lending facility	—			—			183,164			182,852			—
Repurchase agreements and other borrowings	82,413			85,042			68,509			67,786			58,061
Total Borrowings	487,453			590,101			756,749			955,731			1,038,169
Other liabilities	409,435			379,278			366,697			313,719			303,582
TOTAL LIABILITIES	13,910,938			13,933,979			13,263,090			12,842,616			13,046,714
Preferred stock
Authorized shares – 2,000,000	—			—			—			—			—
Common stock, $1.667 par value	121,163			121,144			121,108			121,132			121,115
Capital surplus	1,049,367			1,048,332			1,047,312			1,046,642			1,045,170
Retained earnings	690,960			655,095			613,826			557,889			520,888
Common stock issued to deferred compensation
trust, at cost	(18,076		)	(18,076		)	(17,063		)	(16,969		)	(16,951		)
Deferred compensation trust	18,076			18,076			17,063			16,969			16,951
Accumulated other comprehensive income (loss)	21,597			29,273			17,969			41,184			44,569
TOTAL SHAREHOLDERS’ EQUITY	1,883,087			1,853,844			1,800,215			1,766,847			1,731,742
Noncontrolling interest	17,347			16,012			16,091			16,981			16,961
TOTAL EQUITY	1,900,434			1,869,856			1,816,306			1,783,828			1,748,703
TOTAL LIABILITIES AND EQUITY	$	15,811,372		$	15,803,835		$	15,079,396		$	14,626,444		$	14,795,417

TOWNEBANK
Consolidated Statements of Income – Five Quarter Trend (unaudited)
(dollars in thousands, except share data)


	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2021			2021			2021			2020			2020
INTEREST INCOME:
Loans, including fees	$	98,258		$	100,614		$	101,396		$	104,182		$	102,869
Investment securities	7,000			6,871			7,117			7,499			7,440
Interest-bearing deposits in financial institutions and federal funds sold	1,182			619			416			435			632
Mortgage loans held for sale	3,405			3,711			3,361			3,867			4,587
Total interest income	109,845			111,815			112,290			115,983			115,528
INTEREST EXPENSE:
Deposits	6,028			7,144			8,548			10,762			12,966
Advances from the FHLB	247			274			497			1,404			1,901
Subordinated debt	2,962			2,962			2,930			2,962			2,962
Repurchase agreements and other borrowings	165			291			325			241			940
Total interest expense	9,402			10,671			12,300			15,369			18,769
Net interest income	100,443			101,144			99,990			100,614			96,759
PROVISION FOR CREDIT LOSSES	(1,582		)	(10,055		)	(4,027		)	1,617			31,598
Net interest income after provision for credit losses	102,025			111,199			104,017			98,997			65,161
NONINTEREST INCOME:
Residential mortgage banking income, net	25,422			25,524			37,412			37,504			37,531
Insurance commissions and other title fees and income, net	17,398			18,331			16,325			13,868			17,468
Real estate brokerage and property management income, net	14,283			10,984			17,934			9,229			11,301
Service charges on deposit accounts	2,524			2,391			2,190			1,707			1,986
Credit card merchant fees, net	1,660			1,667			1,302			1,377			1,506
BOLI	2,301			1,541			1,519			1,990			1,605
Other income	6,045			5,487			4,837			5,559			22,278
Net gain/(loss) on investment securities	—			252			1,000			—			1,701
Total noninterest income	69,633			66,177			82,519			71,234			95,376
NONINTEREST EXPENSE:
Salaries and employee benefits	61,230			61,365			58,435			61,475			61,408
Occupancy expense	7,656			7,559			8,072			8,193			8,396
Furniture and equipment	3,513			3,622			3,512			3,462			3,247
Amortization – intangibles	2,750			2,719			2,723			2,797			2,851
Software expense	4,209			4,494			4,194			4,066			3,572
Data processing	3,603			3,414			3,239			2,363			3,113
Professional fees	2,227			2,259			2,339			2,591			2,637
Advertising and marketing	3,865			3,257			2,968			2,204			1,870
Other expenses	15,033			16,705			11,844			18,781			14,887
Total noninterest expense	104,086			105,394			97,326			105,932			101,981
Income before income tax expense and noncontrolling interest	67,572			71,982			89,210			64,299			58,556
Provision for income tax expense	14,829			13,980			16,579			10,408			7,841
Net income	52,743			58,002			72,631			53,891			50,715
Net income attributable to noncontrolling interest	(2,343		)	(2,199		)	(3,636		)	(3,809		)	(16,251		)
Net income attributable to TowneBank	$	50,400		$	55,803		$	68,995		$	50,082		$	34,464
Per common share information
Basic earnings	$	0.70		$	0.77		$	0.95		$	0.69		$	0.48
Diluted earnings	$	0.69		$	0.77		$	0.95		$	0.69		$	0.48
Basic weighted average shares outstanding	72,506,877			72,468,094			72,414,953			72,357,177			72,339,413
Diluted weighted average shares outstanding	72,591,281			72,560,234			72,517,008			72,455,096			72,375,736
Cash dividends declared	$	0.20		$	0.20		$	0.18		$	0.18		$	0.18

TOWNEBANK
Banking Segment Financial Information (unaudited)
(dollars in thousands)


	Three Months Ended												Nine Months Ended							Increase/(Decrease)
	September 30,								June 30,				September 30,							2021 over 2020
	2021				2020				2021				2021				2020			Amount				Percent
Revenue
Net interest income	$	97,668			$	92,869			$	98,134			$	293,407			$	269,941		$	23,466			8.69		%
Service charges on deposit accounts	2,524				1,986				2,391				7,104				6,315			789				12.49		%
Credit card merchant fees	1,660				1,506				1,667				4,630				3,793			837				22.07		%
Other income	6,334				4,876				5,404				16,706				15,826			880				5.56		%
Subtotal	10,518				8,368				9,462				28,440				25,934			2,506				9.66		%
Net gain/(loss) on investment securities	—				1,701				252				1,252				9,632			(8,380		)		(87.00	)	%
Total noninterest income	10,518				10,069				9,714				29,692				35,566			(5,874		)		(16.52	)	%
Total revenue	108,186				102,938				107,848				323,099				305,507			17,592				5.76		%

Provision for credit losses	(1,728		)		31,070				(9,532		)		(14,661		)		64,170			(78,831		)		(122.85	)	%

Expenses
Salaries and employee benefits	34,791				36,535				35,776				102,427				104,970			(2,543		)		(2.42	)	%
Occupancy expense	5,098				5,829				5,012				15,657				15,557			100				0.64		%
Furniture and equipment	2,602				2,424				2,816				8,086				7,800			286				3.67		%
Amortization of intangibles	862				1,063				912				2,737				3,341			(604		)		(18.08	)	%
Other expenses	16,580				15,793				18,392				49,020				45,214			3,806				8.42		%
Total expenses	59,933				61,644				62,908				177,927				176,882			1,045				0.59		%
Income before income tax, corporate allocation and noncontrolling interest	49,981				10,224				54,472				159,833				64,455			95,378				147.98		%
Corporate allocation	1,241				595				1,249				3,782				1,891			1,891				100.00		%
Income before income tax provision and noncontrolling interest	51,222				10,819				55,721				163,615				66,346			97,269				146.61		%
Provision for income tax expense	10,225				474				10,535				30,461				9,304			21,157				227.40		%
Net income	40,997				10,345				45,186				133,154				57,042			76,112				133.43		%
Noncontrolling interest	2				(2		)		1				(1		)		2			(3		)		(150.00	)	%
Net income attributable to TowneBank	$	40,999			$	10,343			$	45,187			$	133,153			$	57,044		$	76,109			133.42		%

Efficiency ratio^(non-GAAP)	54.60			%	59.84			%	57.62			%	54.43			%	58.65		%	(4.22		)	%	(7.20	)	%

TOWNEBANK
Realty Segment Financial Information (unaudited)
(dollars in thousands)


	Three Months Ended												Nine Months Ended								Increase/(Decrease)
	September 30,								June 30,				September 30,								2021 over 2020
	2021				2020				2021				2021				2020				Amount				Percent
Revenue
Residential mortgage brokerage income, net	$	26,637			$	38,074			$	26,383			$	90,898			$	76,549			$	14,349			18.74		%
Real estate brokerage income, net	3,781				3,688				3,893				10,125				8,212				1,913				23.30		%
Title insurance and settlement fees	706				654				684				1,917				1,728				189				10.94		%
Property management fees, net	10,502				7,613				7,091				33,076				20,808				12,268				58.96		%
Income from unconsolidated subsidiary	269				451				289				964				938				26				2.77		%
Net interest and other income	3,154				4,101				3,336				9,223				10,262				(1,039		)		(10.12	)	%
Total revenue	45,049				54,581				41,676				146,203				118,497				27,706				23.38		%

Provision for credit losses	146				528				(523		)		(1,004		)		1,389				(2,393		)		(172.28	)	%

Expenses
Salaries and employee benefits	17,375				15,744				16,018				50,240				42,095				8,145				19.35		%
Occupancy expense	1,926				1,906				1,935				5,732				5,595				137				2.45		%
Furniture and equipment	693				620				592				1,934				2,007				(73		)		(3.64	)	%
Amortization of intangible assets	702				658				590				1,882				1,973				(91		)		(4.61	)	%
Other expenses	11,103				9,226				10,442				30,774				24,366				6,408				26.30		%
Total expenses	31,799				28,154				29,577				90,562				76,036				14,526				19.10		%

Income before income tax, corporate allocation and noncontrolling interest	13,104				25,899				12,622				56,645				41,072				15,573				37.92		%
Corporate allocation	(1,000		)		(356		)		(1,000		)		(3,000		)		(1,119		)		(1,881		)		168.10		%
Income before income tax provision and noncontrolling interest	12,104				25,543				11,622				53,645				39,953				13,692				34.27		%
Provision for income tax expense	3,546				4,780				2,255				12,017				7,614				4,403				57.83		%
Net income	8,558				20,763				9,367				41,628				32,339				9,289				28.72		%
Noncontrolling interest	(2,345		)		(4,790		)		(2,200		)		(8,176		)		(7,996		)		(180		)		2.25		%
Net income attributable to TowneBank	$	6,213			$	15,973			$	7,167			$	33,452			$	24,343			$	9,109			37.42		%

Efficiency ratio ^(non-GAAP)	69.03			%	50.38			%	69.55			%	60.66			%	62.50			%	(1.84		)	%	(2.94	)	%

TOWNEBANK
Insurance Segment Financial Information (unaudited)
(dollars in thousands)


	Three Months Ended												Nine Months Ended								Increase/(Decrease)
	September 30,								June 30,				September 30,								2021 over 2020
	2021				2020				2021				2021				2020				Amount				Percent
Commission and fee income
Property and casualty	$	15,338			$	14,072			$	14,941			$	44,467			$	40,784			$	3,683			9.03		%
Employee benefits	3,820				3,825				3,430				11,135				11,534				(399		)		(3.46	)	%
Travel insurance	—				1,399				—				—				3,526				(3,526		)		(100.00	)	%
Specialized benefit services	164				165				163				494				489				5				1.02		%
Total commissions and fees	19,322				19,461				18,534				56,096				56,333				(237		)		(0.42	)	%

Contingency and bonus revenue	1,664				1,112				3,323				6,746				5,144				1,602				31.14		%
Other income	40				17,697				43				157				17,906				(17,749		)		(99.12	)	%
Total revenue	21,026				38,270				21,900				62,999				79,383				(16,384		)		(20.64	)	%

Employee commission expense	4,185				3,654				4,103				12,395				10,900				1,495				13.72		%
Revenue, net of commission expense	16,841				34,616				17,797				50,604				68,483				(17,879		)		(26.11	)	%

Salaries and employee benefits	9,064				9,129				9,571				28,363				27,136				1,227				4.52		%
Occupancy expense	632				661				612				1,897				1,972				(75		)		(3.80	)	%
Furniture and equipment	218				203				214				626				644				(18		)		(2.80	)	%
Amortization of intangible assets	1,186				1,130				1,217				3,573				3,388				185				5.46		%
Other expenses	1,254				1,060				1,295				3,857				3,836				21				0.55		%
Total operating expenses	12,354				12,183				12,909				38,316				36,976				1,340				3.62		%
Income before income tax, corporate allocation and noncontrolling interest	4,487				22,433				4,888				12,288				31,507				(19,219		)		(61.00	)	%
Corporate allocation	(241		)		(239		)		(249		)		(782		)		(772		)		(10		)		1.30		%
Income before income tax provision and noncontrolling interest	4,246				22,194				4,639				11,506				30,735				(19,229		)		(62.56	)	%
Provision for income tax expense	1,058				2,587				1,190				2,910				4,574				(1,664		)		(36.38	)	%
Net income	3,188				19,607				3,449				8,596				26,161				(17,565		)		(67.14	)	%
Noncontrolling interest	—				(11,459		)		—				—				(12,095		)		12,095				(100.00	)	%
Net income attributable to TowneBank	$	3,188			$	8,148			$	3,449			$	8,596			$	14,066			(5,470		)		(38.89	)	%

Provision for income taxes	1,058				2,587				1,190				2,910				4,574				(1,664		)		(36.38	)	%
Depreciation, amortization and interest expense	1,330				1,285				1,361				3,999				3,875				124				3.20		%
EBITDA^(non-GAAP)	$	5,576			$	12,020			$	6,000			$	15,505			$	22,515			$	(7,010	)		(31.13	)	%

Efficiency ratio^(non-GAAP)	66.31			%	31.93			%	65.70			%	68.66			%	49.05			%	19.61			%	39.98		%
*Included in other income is the gross gain on the sale of Red Sky					$	17,626											$	17,626
Efficiency ratio excluding gain					31.95			%									49.06			%

TOWNEBANK
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands)

	Three Months Ended												Nine Months Ended
	September 30,				September 30,				June 30,				September 30,				September 30,
	2021				2020				2021				2021				2020

Return on average assets (GAAP)	1.27			%	0.89			%	1.48			%	1.55			%	0.91			%
Impact of excluding average goodwill and other intangibles and amortization	0.10			%	0.08			%	0.11			%	0.11			%	0.10			%
Return on average tangible assets (non-GAAP)	1.37			%	0.97			%	1.59			%	1.66			%	1.01			%

Return on average equity (GAAP)	10.59			%	7.85			%	12.21			%	12.73			%	7.48			%
Impact of excluding average goodwill and other intangibles and amortization	4.50			%	3.81			%	5.17			%	5.39			%	3.84			%
Return on average tangible equity (non-GAAP)	15.09			%	11.66			%	17.38			%	18.12			%	11.32			%

Return on average common equity (GAAP)	10.68			%	7.91			%	12.31			%	12.84			%	7.53			%
Impact of excluding average goodwill and other intangibles and amortization	4.59			%	3.88			%	5.26			%	5.49			%	3.91			%
Return on average tangible common equity (non-GAAP)	15.27			%	11.79			%	17.57			%	18.33			%	11.44			%

Book value (GAAP)	$	25.91			$	23.83			$	25.51			$	25.91			$	23.83
Impact of excluding average goodwill and other intangibles and amortization	(6.99		)		(6.77		)		(6.81		)		(6.99		)		(6.77		)
Tangible book value (non-GAAP)	$	18.92			$	17.06			$	18.70			$	18.92			$	17.06

Efficiency ratio (GAAP)	61.20			%	53.08			%	62.99			%	59.01			%	58.86			%
Impact of exclusions	(1.62		)	%	4.28			%	(1.53		)	%	(1.44		)	%	1.58			%
Efficiency ratio (non-GAAP)	59.58			%	57.36			%	61.46			%	57.57			%	60.44			%

Average assets (GAAP)	$	15,706,998			$	15,487,152			$	15,143,888			$	15,151,850			$	13,987,474
Less: average goodwill and intangible assets	506,231				494,238				496,059				499,944				497,135
Average tangible assets (non-GAAP)	$	15,200,767			$	14,992,914			$	14,647,829			$	14,651,906			$	13,490,339

Average equity (GAAP)	$	1,888,451			$	1,747,033			$	1,833,592			$	1,840,268			$	1,704,993
Less: average goodwill and intangible assets	506,231				494,238				496,059				499,944				497,135
Average tangible equity (non-GAAP)	$	1,382,220			$	1,252,795			$	1,337,533			$	1,340,324			$	1,207,858

Average common equity (GAAP)	$	1,871,820			$	1,732,881			$	1,818,664			$	1,824,753			$	1,692,202
Less: average goodwill and intangible assets	506,231				494,238				496,059				499,944				497,135
Average tangible common equity (non-GAAP)	$	1,365,589			$	1,238,643			$	1,322,605			$	1,324,809			$	1,195,067

Net Income (GAAP)	$	50,400			$	34,464			$	55,803			$	175,201			$	95,453
Amortization of Intangibles, net of tax	2,172				2,252				2,148				6,472				6,875
Tangible net income (non-GAAP)	$	52,572			$	36,716			$	57,951			$	181,673			$	102,328

Net Income (GAAP)	$	50,400			$	34,464			$	55,803			$	175,201			$	95,453
Provision for credit losses	(1,582		)		31,599				(10,055		)		(15,665		)		65,559
Provision for income tax	14,829				7,841				13,980				45,388				21,492
Other nonrecurring (income) loss	—				(17,626		)		—				30				(17,626		)
Pre-provision, pre-tax net revenues (non-GAAP)	$	63,647			$	56,278			$	59,728			$	204,955			$	164,879

Total Revenue (GAAP)	$	170,076			$	192,136			$	167,321			$	519,906			$	492,487
Net (gain)/loss on investment securities	—				(1,701		)		(252		)		(1,252		)		(9,633		)
Other nonrecurring (income) loss	—				(17,626		)		—				30				(17,626		)
Total Revenue for efficiency calculation (non-GAAP)	$	170,076			$	172,809			$	167,069			$	518,684			$	465,228

Noninterest expense (GAAP)	$	104,086			$	101,981			$	105,394			$	306,805			$	289,894
Less: Amortization of intangibles	2,750				2,851				2,719				8,192				8,702
Noninterest expense net of amortization (non-GAAP)	$	101,336			$	99,130			$	102,675			$	298,613			$	281,192

October 28, 2021 8:33 am

West Bancorporation, Inc. Announces Net Income for the Third Quarter Of 2021, Declares Quarterly Dividend

WEST DES MOINES, Iowa, Oct. 28, 2021 (GLOBE NEWSWIRE) — West Bancorporation, Inc. (Nasdaq: WTBA; the “Company”), parent company of West Bank, today reported that third quarter 2021 net income was $12.7 million, or $0.76 per diluted common share, compared to third quarter 2020 net income of $8.1 million, or $0.49 per diluted common share. For the first nine months of 2021, net income was $37.7 million, or $2.25 per diluted common share, compared to $24.2 million, or $1.46 per diluted common share, for the first nine months of 2020. On October 27, 2021, the Company’s Board of Directors declared a regular quarterly dividend of $0.24 per common share. The dividend is payable on November 24, 2021, to stockholders of record on November 10, 2021.

The Company recorded no provision for loan losses and a negative $1,500 provision for loan losses in the three and nine months ended September 30, 2021, respectively, compared to provisions for loan losses of $4,000 and $8,000 for the same time periods in 2020. The provisions in 2020 were due to the onset of the global pandemic, whereas 2021 includes a reserve release due to the improving economic outlook.

Dave Nelson, President and Chief Executive Officer of the Company, commented, “West Bancorporation, Inc. is experiencing extraordinary financial performance this year. Net income for the first nine months of 2021 has already exceeded our fiscal year 2020 net income. We have experienced loan growth (exclusive of Paycheck Protection Program (PPP) loan activity) of 10.1 percent for the first nine months of 2021, and year over year loan growth of 14.3 percent (also exclusive of PPP loan activity). Our credit quality continues to improve as classified loans continue to be paid down and pay off. As of September 30, 2021, the Texas ratio declined to 3.24 percent as impaired loans have been paid down, and there were no loans past due more than 30 days.”

Dave Nelson also commented, “Construction of our permanent branch office in Sartell, Minnesota, a suburb of St. Cloud, is expected to be completed in January 2022. We have also purchased land and started planning for the construction of a permanent branch office in Mankato, Minnesota. These offices reflect the success we have had since expanding into those markets in 2019 and represent our commitment to these communities.”

The Company filed its report on Form 10-Q with the Securities and Exchange Commission today. Please refer to that document for a more in-depth discussion of the Company’s financial results. The Form 10-Q is available on the Investor Relations section of West Bank’s website at www.westbankstrong.com.

The Company will discuss its financial results on a conference call scheduled for 10:00 a.m. Central Time tomorrow, Friday, October 29, 2021. The telephone number for the conference call is 888-339-0814. A recording of the call will be available until November 12, 2021, by dialing 877-344-7529. The replay passcode is 10150542.

About West Bancorporation, Inc. (Nasdaq: WTBA)

West Bancorporation, Inc. is headquartered in West Des Moines, Iowa. Serving customers since 1893, West Bank, a wholly-owned subsidiary of West Bancorporation, Inc., is a community bank that focuses on lending, deposit services, and trust services for consumers and small- to medium-sized businesses. West Bank has seven offices in the Des Moines, Iowa metropolitan area, one office in Coralville, Iowa, and four offices in Minnesota in the cities of Rochester, Owatonna, Mankato and St. Cloud.

Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may appear throughout this report. These forward-looking statements are generally identified by the words “believes,” “expects,” “intends,” “anticipates,” “projects,” “future,” “confident,” “may,” “should,” “will,” “strategy,” “plan,” “opportunity,” “will be,” “will likely result,” “will continue” or similar references, or references to estimates, predictions or future events. Such forward-looking statements are based upon certain underlying assumptions, risks and uncertainties. Because of the possibility that the underlying assumptions are incorrect or do not materialize as expected in the future, actual results could differ materially from these forward-looking statements. Risks and uncertainties that may affect future results include: the effects of the COVID-19 pandemic, including its effects on the economic environment, our customers and our operations, as well as any changes to federal, state or local government laws, regulations or orders in connection with the pandemic; interest rate risk; competitive pressures; pricing pressures on loans and deposits; changes in credit and other risks posed by the Company’s loan and investment portfolios, including declines in commercial or residential real estate values or changes in the allowance for loan losses dictated by new market conditions, accounting standards (including as a result of the future implementation of the current expected credit loss (CECL) accounting standard) or regulatory requirements; actions of bank and nonbank competitors; changes in local, national and international economic conditions; changes in legal and regulatory requirements, limitations and costs; changes in customers’ acceptance of the Company’s products and services; cyber-attacks; unexpected outcomes of existing or new litigation involving the Company; the monetary, trade and other regulatory policies of the U.S. government; acts of war or terrorism, widespread disease or pandemics, such as the COVID-19 pandemic, or other adverse external events; developments and uncertainty related to the future use and availability of some reference rates, such as the London Interbank Offered Rate, as well as other alternative reference rates; changes to U.S. tax laws, regulations and guidance; and any other risks described in the “Risk Factors” sections of reports filed by the Company with the Securities and Exchange Commission. The Company undertakes no obligation to revise or update such forward-looking statements to reflect current or future events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)

CONSOLIDATED BALANCE SHEETS	September 30, 2021			September 30, 2020
Assets
Cash and due from banks	$	30,922		$	49,445
Federal funds sold	1,547			16,398
Securities available for sale, at fair value	763,397			374,387
Federal Home Loan Bank stock, at cost	11,544			11,905
Loans	2,359,567			2,247,425
Allowance for loan losses	(28,098		)	(25,403		)
Loans, net	2,331,469			2,222,022
Premises and equipment, net	33,287			28,099
Bank-owned life insurance	43,376			42,520
Other assets	34,158			31,107
Total assets	$	3,249,700		$	2,775,883

Liabilities and Stockholders’ Equity
Deposits:
Noninterest-bearing demand	$	713,076		$	619,346
Interest-bearing:
Demand	458,165			363,430
Savings	1,379,321			1,130,582
Time of $250 or more	50,643			54,241
Other time	135,718			129,181
Total deposits	2,736,923			2,296,780
Federal funds purchased	39,380			2,350
Other borrowings	163,116			217,661
Other liabilities	57,905			43,772
Stockholders’ equity	252,376			215,320
Total liabilities and stockholders’ equity	$	3,249,700		$	2,775,883

WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (continued) (unaudited)
(in thousands)

	Three Months Ended September 30,				Nine Months Ended September 30,
CONSOLIDATED STATEMENTS OF INCOME	2021		2020		2021			2020
Interest income
Loans, including fees	$	24,229	$	22,489	$	71,406		$	67,132
Securities	3,174		2,106		7,984			7,099
Other	82		15		226			256
Total interest income	27,485		24,610		79,616			74,487
Interest expense
Deposits	2,021		1,946		5,893			9,343
Federal funds purchased	2		2		4			21
Other borrowings	976		1,530		3,262			4,780
Total interest expense	2,999		3,478		9,159			14,144
Net interest income	24,486		21,132		70,457			60,343
Provision for loan losses	—		4,000		(1,500		)	8,000
Net interest income after provision for loan losses	24,486		17,132		71,957			52,343
Noninterest income
Service charges on deposit accounts	589		609		1,749			1,743
Debit card usage fees	490		432		1,443			1,205
Trust services	695		553		2,038			1,477
Increase in cash value of bank-owned life insurance	230		133		690			427
Loan swap fees	—		983		42			1,572
Realized securities gains, net	11		156		51			81
Other income	386		337		1,368			993
Total noninterest income	2,401		3,203		7,381			7,498
Noninterest expense
Salaries and employee benefits	6,018		5,412		17,298			16,014
Occupancy	1,203		1,221		3,630			3,651
Data processing	616		572		1,835			1,756
FDIC insurance	528		351		1,358			880
Other expenses	2,347		2,503		7,388			6,838
Total noninterest expense	10,712		10,059		31,509			29,139
Income before income taxes	16,175		10,276		47,829			30,702
Income taxes	3,469		2,176		10,132			6,544
Net income	$	12,706	$	8,100	$	37,697		$	24,158

WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (continued) (unaudited)


	PER COMMON SHARE						MARKET INFORMATION (1)
	Net Income
	Basic		Diluted		Dividends		High		Low
2021
3rd Quarter	$	0.77	$	0.76	$	0.24	$	31.98	$	26.26
2nd Quarter	0.80		0.79		0.24		29.90		23.92
1st Quarter	0.71		0.70		0.22		26.78		18.86

2020
4th Quarter	$	0.52	$	0.52	$	0.21	$	21.79	$	15.53
3rd Quarter	0.49		0.49		0.21		17.99		15.50
2nd Quarter	0.48		0.48		0.21		20.67		14.50
1st Quarter	0.49		0.49		0.21		25.68		13.74

(1) The prices shown are the high and low sale prices for the Company’s common stock, which trades on the Nasdaq Global Select Market under the symbol WTBA. The market quotations, reported by Nasdaq, do not include retail markup, markdown or commissions.

	Three Months Ended September 30,				Nine Months Ended September 30,
SELECTED FINANCIAL MEASURES	2021		2020		2021		2020
Return on average assets	1.52	%	1.16	%	1.56	%	1.21	%
Return on average equity	20.02	%	15.20	%	20.98	%	15.47	%
Net interest margin on a FTE basis ⁽¹⁾	3.06	%	3.21	%	3.07	%	3.19	%
Efficiency ratio ⁽¹⁾⁽²⁾	39.41	%	41.35	%	40.08	%	42.68	%

					As of September 30,
					2021		2020
Texas ratio⁽²⁾					3.24	%	7.38	%
Allowance for loan losses ratio					1.19	%	1.13	%
Allowance for loan losses ratio, excluding PPP loans ⁽¹⁾⁽³⁾					1.22	%	1.26	%
Tangible common equity ratio					7.77	%	7.76	%

(1) Non-GAAP financial measures – see reconciliation below
(2) A lower ratio is more desirable
(3) Paycheck Protection Program (PPP)

Definitions of ratios:

Return on average assets – annualized net income divided by average assets.
Return on average equity – annualized net income divided by average stockholders’ equity.
Net interest margin – annualized tax-equivalent net interest income divided by average interest-earning assets.
Efficiency ratio – noninterest expense (excluding other real estate owned expense) divided by noninterest income (excluding net securities gains/losses and gains/losses on disposition of premises and equipment) plus tax-equivalent net interest income.
Texas ratio – total nonperforming assets divided by tangible common equity plus the allowance for loan losses.
Allowance for loan losses ratio – allowance for loan losses divided by total loans.
Allowance for loan losses ratio, excluding PPP loans – allowance for loan losses divided by total loans minus the amount of PPP loans.
Tangible common equity ratio – common equity less intangible assets (none held) divided by tangible assets.

WEST BANCORPORATION, INC. AND SUBSIDIARY

Financial Information (continued) (unaudited)
(dollars in thousands)

NON-GAAP FINANCIAL MEASURES

This press release contains references to financial measures that are not defined in generally accepted accounting principles (GAAP). The following table reconciles the non-GAAP financial measures of net interest income and net interest margin on a fully taxable equivalent (FTE) basis, efficiency ratio on an adjusted and FTE basis, loans, net of PPP loans and allowance for loan losses ratio, excluding PPP loans, to their most directly comparable measures under GAAP.

	Three Months Ended September 30,								Nine Months Ended September 30,
	2021				2020				2021				2020
Reconciliation of net interest income and net interest margin on a FTE basis to GAAP:
Net interest income (GAAP)	$	24,486			$	21,132			$	70,457			$	60,343
Tax-equivalent adjustment ⁽¹⁾	306				144				805				516
Net interest income on a FTE basis (non-GAAP)	24,792				21,276				71,262				60,859
Average interest-earning assets	3,212,283				2,639,532				3,099,066				2,544,429
Net interest margin on a FTE basis (non-GAAP)	3.06			%	3.21			%	3.07			%	3.19			%

Reconciliation of efficiency ratio on an adjusted and FTE basis to GAAP:
Net interest income on a FTE basis (non-GAAP)	$	24,792			$	21,276			$	71,262			$	60,859
Noninterest income	2,401				3,203				7,381				7,498
Adjustment for realized securities gains, net	(11		)		(156		)		(51		)		(81		)
Adjustment for losses on disposal of premises and equipment, net	—				1				29				3
Adjusted income	27,182				24,324				78,621				68,279
Noninterest expense	10,712				10,059				31,509				29,139
Efficiency ratio on an adjusted and FTE basis (non-GAAP) ⁽²⁾	39.41			%	41.35			%	40.08			%	42.68			%

									As of September 30,
									2021				2020
Reconciliation of allowance for loan losses ratio, excluding PPP loans:
Loans outstanding (GAAP)									$	2,359,567			$	2,247,425
Less: PPP loans									(47,416		)		(224,489		)
Loans, net of PPP loans (non-GAAP)									2,312,151				2,022,936
Allowance for loan losses									28,098				25,403
Allowance for loan losses ratio, excluding PPP loans (non-GAAP)									1.22			%	1.26			%

(1) Computed on a tax-equivalent basis using a federal income tax rate of 21 percent, adjusted to reflect the effect of the nondeductible interest expense associated with owning tax-exempt securities and loans. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the financial results, as it enhances the comparability of income arising from taxable and nontaxable sources.
(2) The efficiency ratio expresses noninterest expense as a percent of fully taxable equivalent net interest income and noninterest income, excluding specific noninterest income and expenses. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the Company’s financial performance. It is a standard measure of comparison within the banking industry.

For more information contact:
Doug Gulling, Executive Vice President, Treasurer and Chief Financial Officer (515) 222-2309

October 28, 2021 8:33 am

Integra LifeSciences Announces Jan De Witte as President and Chief Executive Officer

30-year healthcare and technology veteran with extensive global executive experience and diverse expertise in R&D, commercialization, product management, digital innovation and operations

PRINCETON, N.J., Oct. 28, 2021 (GLOBE NEWSWIRE) — Integra LifeSciences Holdings Corporation (NASDAQ: IART), a leading global medical technology company, today announced that it has appointed Jan D. De Witte as its next President and Chief Executive Officer. Mr. De Witte succeeds Peter J. Arduini, who previously announced he will step down as Chief Executive Officer to accept the role of President and Chief Executive Officer of GE Healthcare. Mr. De Witte will join Integra prior to the end of the year, at which time he will also be appointed to Integra’s board of directors.

With over two decades in the healthcare industry, De Witte brings global public company leadership experience as well as deep technological, operational and commercial expertise to Integra. For the past five years, De Witte served as Chief Executive Officer of Barco N.V. (Euronext: BAR), where he created shareholder value through digital innovation and new product development, commercial acceleration, international market growth and operational excellence while effectively leading the company through the COVID-19 pandemic. In addition, De Witte spent 17 years in senior-level leadership roles at GE, including serving as President and CEO of GE Global Healthcare IT, where he had full global P&L responsibility for product management, technology and software development, commercialization, services and solutions delivery. Prior to GE, De Witte spent five years in strategic consulting at McKinsey and three years in operations at Procter & Gamble. De Witte currently serves on the Board of Directors of ResMed (NYSE: RMD, ASX: RMD), a global leader in digital health technologies and cloud-connected medical devices that transform care for people with sleep apnea, COPD and other chronic diseases.

Integra’s special board committee on CEO succession partnered with Heidrick & Struggles to conduct a comprehensive search that included interviewing and evaluating a talented slate of internal and external candidates.

“We are thrilled to have Jan join Integra at this exciting time in the company’s history. Jan is a proven global business leader with extensive C-level experience at internationally-recognized companies. His deep experience in healthcare and technology, commitment to advancing sustainability and proven ability to develop and commercialize innovative new products led the board to select Jan as Integra’s next CEO. His values around inclusivity, integrity and accountability are highly aligned with Integra’s people-first culture. We look forward to Jan’s start later this year and his many future contributions to Integra,” said Stuart Essig, Chairman of Integra’s board of directors.

“I would like to express my genuine appreciation to Pete for his 11 years of leadership. Pete shaped Integra into the company it is today, and we wish him all the best in his next endeavor,” concluded Essig.

Mr. De Witte stated, “I am honored and excited to be joining Integra and a very talented and dedicated team. The company has a rich history of global leadership in neurosurgery with some of the most recognized brands in plastic and reconstructive surgery. I look forward to building on an already strong foundation to drive value for all our stakeholders. To the 3,700 employees around the world, I am delighted to join such an engaged and entrepreneurial culture and look forward to working with you to further elevate Integra’s impact around the world.”

Mr. De Witte holds a master’s of science degree in electromechanical engineering with greatest distinction from the KU Leuven in Belgium and a master’s degree in business administration from Harvard University. He has lived and worked in seven countries, with much of his career spent in the U.S., and is fluent in three languages. He is also a dedicated community leader.

About Integra LifeSciences

Integra LifeSciences is a global leader in regenerative tissue technologies and neurosurgical solutions dedicated to limiting uncertainty for clinicians so they can focus on providing the best patient care. Integra offers a comprehensive portfolio of high quality, leadership brands that include AmnioExcel^®, Bactiseal^®, CerebroFlo^®, CereLink^® Certas^® Plus, Codman^®, CUSA^®, Cytal^®, DuraGen^®, DuraSeal^®, Gentrix^®, ICP Express^®, Integra^®, MatriStem^® UBM, MAYFIELD^®, MediHoney^®, MicroFrance^®, MicroMatrix^®, PriMatrix^®, SurgiMend^®, TCC-EZ^® and VersaTru^®. For the latest news and information about Integra and its products, please visit www.integralife.com.

Investor Relations:

Michael Beaulieu
(609) 529-4812
[email protected]

Media Contact:

Laurene Isip
(609) 208-8121
[email protected]

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/488795cb-bd0e-4fce-9638-23f4e40dffcb

October 28, 2021 8:33 am

EMCORE’s New SDI170 IMU Achieves Early Success with Initial Shipments to U.S. and International Customers

ALHAMBRA, CA, Oct. 28, 2021 (GLOBE NEWSWIRE) — EMCORE Corporation (Nasdaq: EMKR), a leading provider of advanced mixed-signal products that serve the aerospace & defense, communications, and sensing markets, announced today that its new SDI170 MEMS (Micro-Electromechanical Systems) Tactical Grade Inertial Measurement Unit (IMU) has achieved enthusiastic market reception and early technical success. Initial low-rate production units have been confirmed by U.S. and international customers to be seamless form, fit, and function replacements for the HG1700-AG58 Ring Laser Gyroscope (RLG) IMU.

Customer testing of the SDI170 IMU has been resoundingly positive. “The parameters of the SDI170 tested are satisfactory. All the parameters (noise, bias stability and repeatability, scale factor repeatability, misalignment repeatability) are in the range of specification of the SDI170,” reported a key customer that performed extensive testing. “We found that the SDI170’s interfaces are exactly compatible with the HG1700. In our tests, we were able to directly use the previously prepared mechanical interfaces, cabling, and data acquisition software for the HG1700.”

“We are extremely pleased that our customers have reported that the SDI170 production units have met all their requirements for compatibility and performance,” said Albert Lu, EMCORE’s Senior Vice President and General Manager, Aerospace and Defense. “We had high expectations this would be the case following EMCORE’s completion of extensive internal DVT (Design Verification Testing) of the SDI170 before its introduction in April 2021 to confirm compatibility to replace legacy products.”

EMCORE is currently completing an extended qualification ahead of full-rate production scheduled for release in November. In addition, a memorandum of understanding was recently achieved with a key international customer for a significant volume of units — upon completion of customer qualification, deliveries are expected to begin in 2022.

For further information and specifications on EMCORE’s SDI170 IMU and our complete line of navigation products, call +1 866-234-4976; e-mail: [email protected]; or visit us on the web: www.emcore.com/nav.

About EMCORE

EMCORE Corporation is a leading provider of advanced mixed-signal products that serve the aerospace & defense, navigation, fiber optic communications, and sensing markets. Our best-in-class components and systems support a broad array of applications including navigation and inertial sensing, defense optoelectronics, broadband communications, optical sensing, and specialty chips for telecom and data center. We leverage industry-leading Quartz MEMS, Lithium Niobate, and Indium Phosphide chip-level technology to deliver state-of-the-art component and system-level products across our end-market applications. EMCORE has vertically-integrated manufacturing capability at its wafer fabrication facility in Alhambra, CA, and Quartz MEMS manufacturing facility in Concord, CA. Our manufacturing facilities maintain ISO 9001 quality management certification, and we are AS9100 aerospace quality certified at our facility in Concord. For further information about EMCORE, please visit http://www.emcore.com.

Forward-looking statements:

The information provided herein may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include statements regarding EMCORE’s plans, strategies, business prospects, growth opportunities, changes, and trends in our business and expansion into new markets. These forward-looking statements are based on management’s current expectations, estimates, forecasts, and projections about EMCORE and are subject to risks and uncertainties that could cause actual results and events to differ materially from those stated in the forward-looking statements, including without limitation, the following: (a) uncertainties regarding the effects of the COVID-19 pandemic and the impact of measures intended to reduce its spread on our business and operations, which is evolving and beyond our control; (b) the rapidly evolving markets for EMCORE’s products and uncertainty regarding the development of these markets; (c) EMCORE’s historical dependence on sales to a limited number of customers and fluctuations in the mix of products and customers in any period; (d) delays and other difficulties in commercializing new products; (e) the failure of new products: (i) to perform as expected without material defects, (ii) to be manufactured at acceptable volumes, yields, and cost, (iii) to be qualified and accepted by our customers, and (iv) to successfully compete with products offered by our competitors; (f) uncertainties concerning the availability and cost of commodity materials and specialized product components that we do not make internally; (g) actions by competitors; and (h) other risks and uncertainties discussed under Item 1A – Risk Factors in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as updated by our subsequent periodic reports. Forward-looking statements contained in this press release are made only as of the date hereof, and EMCORE undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

EMCORE Corporation

David Wojciechowski
Vice President of Sales, Marketing and Business Development
(626) 293-3715
[email protected]

Investor

Tom Minichiello
Chief Financial Officer
(626) 293-3400
[email protected]

Media

Joel Counter
Director, Corporate & Marketing Communications
(626) 999-7017
[email protected]

October 28, 2021 8:33 am

Berkshire Grey Announces Date for Third Quarter 2021 Financial Results

BEDFORD, Mass., Oct. 28, 2021 (GLOBE NEWSWIRE) — Berkshire Grey Inc. (Nasdaq: BGRY), the leader in AI-enabled robotic solutions that automate supply chain processes, announced that it will report third quarter 2021 financial results before market open on Thursday, November 11, 2021. The Company will host a conference call at 10:00 a.m. Eastern time on November 11, 2021 to discuss its financial results for the third quarter and to provide a business update.

Berkshire Grey Third Quarter 2021 Conference Call.
Date: Thursday, November 11, 2021
Time: 10:00 a.m. Eastern time
Dial-in: 1-855-639-2214 or 1-409-216-0598
Conference ID: 4665177
Live webcast (listen only): https://ir.berkshiregrey.com/news-events

The conference call available for replay on Berkshire Grey’s investor relations website at ir.berkshiregrey.com or by calling 1-855-859-2056 or 1-404-537-3406 and entering replay ID number 4665177.

About Berkshire Grey

Berkshire Grey (Nasdaq: BGRY) helps customers radically change the essential way they do business by delivering game-changing technology that combines AI and robotics to automate fulfillment, supply chain, and logistics operations. Berkshire Grey solutions are a fundamental engine of change that transform pick, pack, move, store, organize, and sort operations to deliver competitive advantage for enterprises serving today’s connected consumers. Berkshire Grey customers include Global 100 retailers and logistics service providers. More information is available at www.berkshiregrey.com.

Berkshire Grey and the Berkshire Grey logo are registered trademarks of Berkshire Grey. Other trademarks referenced are the property of their respective owners.

To learn more about Berkshire Grey, please visit BerkshireGrey.com and follow Berkshire Grey on Facebook, LinkedIn, Twitter and YouTube.

Contacts:

Sara Buda
VP Investor Relations, Berkshire Grey
[email protected]

October 28, 2021 8:33 am

Entera Bio Publishes Key Study Describing its Oral Delivery Technology Platform for Biologic Drugs

‒Study describes a dual mechanism of action approach to oral drug delivery of large molecules, the “Holy Grail” of drug development.

‒Technology is utilized in Entera’s EB613 oral PTH drug for osteoporosis and several other molecules now in development by Entera and in collaboration with pharmaceutical companies.

BOSTON and JERUSALEM, Oct. 28, 2021 (GLOBE NEWSWIRE) — Entera Bio Ltd. (NASDAQ: ENTX), today announced that researchers at the company and the University of East Anglia in the UK published preclinical in vivo studies which demonstrate the technologies efficiency in the oral delivery of large molecule biologic drugs. The approach described in the research underpins Entera’s lead product, EB613, an oral parathyroid hormone (hPTH) entering Phase 3 clinical development for the treatment of osteoporosis. The pivotal Phase 3 study is planned for 2022.

The studies were published on line in the peer-reviewed International Journal of Pharmaceutics X.

“Entera’s highly innovative technology has the potential to transform the way we treat many diseases,” stated William Fraser, MD, Professor of Medicine at The Norfolk and Norwich University Hospitals and Norwich Medical School at the University of East Anglia. “Not only can replacing injections improve patient compliance and reduce patient discomfort, but the administration of oral PTH in both hypoparathyroidism and osteoporosis will allow for the customized titration of dose so critical to each individual patient. At present, most injections are administered via “pen” injectors, which are frequently not amenable to dose titration.”

“Entera’s innovation is to combine in a single formulation two approaches to enhancing the delivery of large molecule biologics,” said Spiros Jamas, the company’s CEO. “This research supports our strategy to address the two key challenges in delivering hPTH to the bloodstream at appropriate therapeutic levels consistently: protecting proteins from breaking down in the gastrointestinal tract; and 2) improving absorption of proteins through the gastro-intestinal tract.”

“With a burgeoning number of injectable biologics on the market and in development, there is a growing need for effective oral formulations especially in chronic conditions where replacing injections with oral dosage may result in higher patient compliance, adherence, and quality of life,” stated Entera CEO Spiros Jamas. “Beyond the near-term opportunity for our EB613 oral PTH in osteoporosis, Entera’s platform technology has applications in many other indications currently treated through injectables.”

In this paper researchers evaluated three different formulations of oral hPTH (1-34): 1. hPTH with a protease inhibitor which can protect the molecule in the gastrointestinal tract, and 2. hPTH with just a permeation enhancer (SNAC) which allows for the trans-cellular absorption of large molecules in the GI tract, and 3. hPTH combined with both protease inhibitor and permeation enhancer (the formulation technology currently utilized by Entera). In studies utilizing a porcine model, the Entera combined formulation achieved significantly higher PTH blood levels (Cmax and AUC, ~10- and ~20-fold respectively) as compared to each of these approaches on their own. The researchers concluded that an appropriate combination of these different technological approaches considerably contributes to the efficient oral delivery of a number of biological macromolecules.

The study is titled, “The combined effect of permeation enhancement and proteolysis inhibition on the systemic exposure of orally administrated peptides: Salcaprozate sodium, soybean trypsin inhibitor, and teriparatide study in pigs.” The authors on the paper are, Gregory Burshtein, Constantin Itin, Hillel Galitzer and Phillip Schwartz, from Entera Bio, Jonathan C. W. Tang, of the University of East Anglia (Norwich, UK) William D. Fraser, of the University of East Anglia and Norfolk and Norwich University Hospital (Norwich, UK).

About Entera Bio

Entera is a leader in the development of orally delivered large molecule therapeutics for use in areas with significant unmet medical need where adoption of injectable therapies is limited due to cost, convenience and compliance challenges for patients. The Company’s proprietary, oral drug delivery technology is designed to address the technical challenges of negligible bioavailability and high absorption variability through the utilization of an approved synthetic absorption enhancer to facilitate the absorption of large molecules, and combined chemical and biological protection from enzymatic degradation in the GI tract. Entera is constantly working on the development and optimization of its delivery platform to enable oral delivery of a wider range of biologic molecules The Company’s most advanced product candidates, EB613 for the treatment of osteoporosis and EB612 for the treatment of hypoparathyroidism are in clinical development. The Company recently completed the Phase 2 study for EB613. Additionally, Entera licenses its technology to biopharmaceutical companies for use with their proprietary compounds and, to date, has established a collaboration with Amgen Inc. For more information on Entera Bio, visit www.enterabio.com.

Forward Looking Statements

Various statements in this release are “forward-looking statements” under the securities laws. Words such as, but not limited to, “anticipate,” “believe,” “can,” “could,” “expect,” “estimate,” “design,” “goal,” “intend,” “may,” “might,” “objective,” “plan,” “predict,” “project,” “target,” “likely,” “should,” “will,” and “would,” or the negative of these terms and similar expressions or words, identify forward-looking statements. Forward-looking statements are based upon current expectations that involve risks, changes in circumstances, assumptions and uncertainties. Forward-looking statements should not be read as a guarantee of future performance or results and may not be accurate indications of when such performance or results will be achieved.

Important factors that could cause actual results to differ materially from those reflected in Entera’s forward-looking statements include, among others: changes in our interpretation of the complete 3-month biomarker data from the recently completed Phase 2 clinical trial of EB613, the timing of data readouts from the recently completed Phase 2 clinical trial of EB613, the full results of the Phase 2 clinical trial of EB613, and our analysis of those full results, the FDA’s interpretation and review of our results from and analysis of our Phase 2 trial of EB613, unexpected changes in our ongoing and planned preclinical development and clinical trials, the timing of and our ability to make regulatory filings and obtain and maintain regulatory approvals for our product candidates; the impact of COVID-19 on Entera’s business operations; the potential disruption and delay of manufacturing supply chains, loss of available workforce resources, either by Entera or its collaboration and laboratory partners, due to travel restrictions, lay-offs or forced closures or repurposing of hospital facilities; impacts to research and development or clinical activities that Entera is contractually obligated to provide, such as those pursuant to Entera’s agreement with Amgen; overall regulatory timelines, if the FDA or other authorities are closed for prolonged periods, choose to allocate resources to review of COVID-19 related drugs or believe that the amount of Phase 2 clinical data collected are insufficient to initiate a Phase 3 trial, or a meaningful deterioration of the current political, legal and regulatory situation in Israel or the United States; the availability, quality and timing of the data from the Phase 2 clinical trial of EB613 in osteoporosis patients; the ability to find a dose that demonstrates the comparability of EB613 to FORTEO in the recently completed Phase 2 clinical trial of EB613; the size and growth of the potential market for EB613 and Entera’s other product candidates including any possible expansion of the market if an orally delivered option is available in addition to an injectable formulation; the scope, progress and costs of developing Entera’s product candidates including EB612 and GLP-2; Entera’s reliance on third parties to conduct its clinical trials; Entera’s expectations regarding licensing, business transactions and strategic collaborations; Entera’s operation as a development stage company with limited operating history; Entera’s ability to continue as a going concern absent access to sources of liquidity; Entera’s expectations regarding its expenses, revenue, cash resources, liquidity and financial condition; Entera’s ability to raise additional capital; Entera’s interpretation of FDA feedback and guidance and how such guidance may impact its clinical development plans; Entera’s ability to obtain and maintain regulatory approval for any of its product candidates; Entera’s ability to comply with Nasdaq’s minimum listing standards and other matters related to compliance with the requirements of being a public company in the United States; Entera’s intellectual property position and its ability to protect its intellectual property; and other factors that are described in the “Special Note Regarding Forward-Looking Statements,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Entera’s annual and current filings which are on file with the SEC and available free of charge on the SEC’s website at http://www.sec.gov. Additional factors may be set forth in those sections of Entera’s Annual Report on Form 20-F for the year ended December 31, 2020, filed with the SEC in the first quarter of 2021. In addition to the risks described above and in Entera’s annual report on Form 20-F and current reports on Form 6-K and other filings with the SEC, other unknown or unpredictable factors also could affect Entera’s results. There can be no assurance that the actual results or developments anticipated by Entera will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Entera. Therefore, no assurance can be given that the outcomes stated in such forward-looking statements and estimates will be achieved.

All written and verbal forward-looking statements attributable to Entera or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to herein. Entera cautions investors not to rely too heavily on the forward-looking statements Entera makes or that are made on its behalf. The information in this release is provided only as of the date of this release, and Entera undertakes no obligation, and specifically declines any obligation, to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

Spiros Jamas, CEO
Tel: +001 617-362-3579
[email protected]