Market Newsdesk

TORONTO, April 30, 2021 (GLOBE NEWSWIRE) — Medivolve Inc. (“Medivolve”) (NEO:MEDV; OTC:COPRF; FRA:4NC) a healthcare investment management company that seeks out disruptive technologies, ground-breaking innovations and exclusive partnerships to help combat COVID-19, today announced that David Preiner has been appointed Chief Executive Officer (CEO), effective immediately. Preiner will succeed Doug Sommerville, who will assist as a transitionary advisor to the new CEO. As Medivolve’s CEO, Preiner will lead a team of computer scientists, engineers, and physicians to build a next-generation, data-driven healthcare system set to transform human health management across the United States.

Harvard educated BLA candidate in Biology, Preiner is experienced in the intersectionality of biotechnology, artificial intelligence and nanotechnology to accelerate translational science and molecular discovery. Successful entrepreneur with a track record in bootstrapping, leading and scaling startups into multimillion dollar companies, Preiner’s appointment reflects Medivolve’s commitment to searching for and investing in breakthrough sciences, technologies, research, and resolutions to shape the future of healthcare. 

“It’s been a great privilege to lead Medivolve and to have overseen the company’s transformation from investment issuer to a leader in disruptive medical technologies focused on the prevention, detection and treatment of COVID-19, and future delivery of medical technology and services,” said Doug Sommerville, former CEO and ongoing Medivolve advisor. “David’s appointment comes at a critical inflection point in Medivolve’s evolution, and we are thrilled to have someone with such a unique blend of proven scientific and entrepreneurial experience build on the company’s momentum and take advantage of the market opportunities ahead.”

Preiner will serve concurrently as CEO of Xenomics, a private biotechnology company he founded in 2019, where he leads a PhD-level team focused on advancing breakthroughs in genetics and biomanufacturing to combat global sustainability issues in food, energy, and health. Preiner’s role as CEO of Medivolve and Xenomics is a strategic decision structured to enable both companies to capitalize on opportunities to leverage high-performance computing partnerships and talent, while drastically reducing capital requirements.

“I am incredibly excited and honored to lead our mission-driven company into the next wave of growth,” said David Preiner, CEO, Medivolve. “It has been a formative year for almost every person on the planet. Confronted with the reality of a fragile societal infrastructure and gaping health disparities, the COVID-19 pandemic magnified an already existing need to reimagine how healthcare is designed, offered and customized to align with the world we live in and the unique needs of the people who live in it. We have a tremendous opportunity here at Medivolve to leverage emerging technologies, scientific discoveries and data-driven insights to transform and sustainably manage American healthcare for the long-term.”

Prior to joining Medivolve, Preiner led a series of academic projects, successful startups, and philanthropic endeavors. At Biotii Technologies, he worked to unlock the therapeutic potential of synthetic cannabinoids in treating a broad range of disease conditions. As an academic, Preiner earned accolades as the Microsoft Prize Winner at Hack Harvard in 2015, Intel Prize Winner at Stanford TreeHacks in 2016, and 3rd Place Winner at Yale Hack Health in 2016. While pursuing his studies at Harvard, he worked as a clinical technician in the Neurology Department at Boston Children’s Hospital. Before resuming his education, he co-founded, led and successfully grew four startups. 

Outside of healthcare innovation, Preiner is also known for his humanitarian work. In the wake of the 2010 Haitian earthquake, he took on leadership roles in partnership with local NGOs to distribute fresh water and rebuild and restore nearly 15 schools. 

Sommerville is stepping down as Medivolve CEO and a director to pursue personal interests and to focus on his board and advisory roles.

The Company has granted 1,000,000 stock options to Preiner pursuant to the Company’s stock option plan. The stock options vest immediately and may be exercised at a price of $0.155 per common share for a period of five years from the date of grant.

About Medivolve Inc.

Medivolve Inc. (NEO:MEDV; OTC:COPRF; FRA:4NC) focuses on commercializing technologies to help combat the COVID-19 pandemic. This includes providing convenient and accessible medical services for testing, prevention and treatment. Medivolve is comprised of a team of renowned global medical and business advisors who are committed to helping fulfill Medivolve’s mission of searching for and investing in breakthrough sciences, technologies, research or resolutions to empower the betterment of mankind. This panel includes prominent Stanford neurologist and immunologist Dr. Lawrence Steinman as well as Dr. Glenn Copeland, one of North America’s most prominent orthopedic treatment and sports medicine specialists. Through its braintrust of industry specialists, thought leaders, influencers, and opinion makers, Medivolve has also developed a proprietary strategy to capitalize on high-margin opportunities across three areas: the prevention, detection, and treatment of COVID-19.

For investing inquiries, please contact: 
[email protected]  
  
For U.S. media inquiries, please contact: 
Sophia Powe 
[email protected] 

Cautionary Note Regarding Forward-looking Information 
  
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the appointment and resignation of officers and directors; the pursuit by Medivolve of opportunities; and the merits or potential returns of any such opportunities. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, as the case may be, to be materially different from those expressed or implied by such forward-looking information. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. 
  
NEITHER THE NEO EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAS REVIEWED OR ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. 

CEDAR RAPIDS, Iowa, April 30, 2021 (GLOBE NEWSWIRE) — United Fire Group, Inc. (the “Company” or “UFG”) (Nasdaq: UFCS) announced today that the first quarter 2021 results include estimated pre-tax catastrophe losses of $29 million. The higher than average catastrophe losses in the first quarter of 2021 were primarily from winter storm Uri. As previously released as an estimate on March 1, 2021, this catastrophic event was a full retention loss, with losses in excess of our stated reinsurance retention of $20.0 million.

United Fire Group, Inc. will report first quarter 2021 earnings before the market opens on May 5, 2021, and will host a conference call to discuss its financial results at 9:00 a.m. Central Time on that date.

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About UFG

Founded in 1946 as United Fire & Casualty Company, UFG, through its insurance company subsidiaries, is engaged in the business of writing property and casualty insurance.

Through our subsidiaries, we are licensed as a property and casualty insurer in 50 states, plus the District of Columbia, and we are represented by approximately 1,000 independent agencies. A.M. Best Company assigns a rating of “A” (Excellent) for members of the United Fire & Casualty Group.

For more information about UFG visit www.ufginsurance.com.

Contact:
Randy Patten, AVP & Controller, 319-286-2537 or [email protected]

Disclosure of Forward-Looking Statements

This release may contain forward-looking statements about our operations, anticipated performance and other similar matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor under the Securities Act of 1933 and the Securities Exchange Act of 1934 for forward-looking statements. The forward-looking statements are not historical facts and involve risks and uncertainties that could cause actual results to differ from those expected and/or projected. Such forward-looking statements are based on current expectations, estimates, forecasts and projections about the Company, the industry in which we operate, and beliefs and assumptions made by management. Words such as “expect(s),” “anticipate(s),” “intend(s),” “plan(s),” “believe(s),” “continue(s),” “seek(s),” “estimate(s),” “goal(s),” “remain(s) optimistic,” “target(s),” “forecast(s),” “project(s),” “predict(s),” “should,” “could,” “may,” “will,” “might,” “hope,” “can” and other words and terms of similar meaning or expression in connection with a discussion of future operations, financial performance or financial condition, are intended to identify forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed in such forward-looking statements. Information concerning factors that could cause actual outcomes and results to differ materially from those expressed in the forward-looking statements is contained in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission (“SEC”) on February 26, 2021. The risks identified in our Annual Report on Form 10-K and in our other SEC filings are representative of the risks, uncertainties, and assumptions that could cause actual outcomes and results to differ materially from what is expressed in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release or as of the date they are made. Except as required under the federal securities laws and the rules and regulations of the SEC, we do not have any intention or obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

CALGARY, Alberta, April 30, 2021 (GLOBE NEWSWIRE) — (PIPE – TSX) Pipestone Energy Corp. (“Pipestone Energy” or the “Company”) is pleased to announce that is has successfully renewed and extended its Reserve Based Loan (“RBL” or “Credit Facility”) with its syndicate of banks, re-affirming its borrowing base at $225 million.

Pipestone Energy has closed on its RBL renewal with its corporate banking syndicate, consisting of National Bank Financial Inc., Bank of Montreal, ATB Financial, and Canadian Western Bank. The Credit Facility’s borrowing base and available capacity has been maintained at $225 million on a fully conforming basis. The revolving period for the RBL has been extended to May 31, 2022 with a maturity of May 31, 2023. The next borrowing base redetermination is scheduled for November 2021. The RBL renewal and extension ensures Pipestone Energy is fully funded to execute its previously released growth plans.

First Quarter 2021 Conference Call

Following our Q1 2021 financial and operations update release, a conference call has been scheduled for May 12^th, 2021 at 9:00 a.m. Mountain Daylight Time (11:00 a.m. Eastern Daylight Time) to update interested investors, analysts, brokers, and media representatives on the Company’s operations and Q1 2021 highlights.

Conference Call Details:

Toll-Free: (866) 953-0776
International: (630) 652-5852
Conference ID: 8981815

An archived recording of the conference call will be available shortly after the event and will be available until May 19, 2021. To access the replay please dial toll free in North America (855) 859-2056 or International (404) 537-3406 and enter 8981815 when prompted.

Advisory Regarding Forward-Looking Statement

In the interest of providing shareholders of Pipestone Energy and potential investors information regarding Pipestone Energy, this news release contains certain information and statements (“forward-looking statements”) that constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future results or events, are based upon internal plans, intentions, expectations and beliefs, and are subject to risks and uncertainties that may cause actual results or events to differ materially from those indicated or suggested therein. All statements other than statements of current or historical fact constitute forward-looking statements. Forward-looking statements are typically, but not always, identified by words such as “anticipate”, “estimate”, “expect”, “intend”, “forecast”, “continue”, “propose”, “may”, “will”, “should”, “believe”, “plan”, “target”, “objective”, “project”, “potential” and similar or other expressions indicating or suggesting future results or events.

Forward-looking statements are not promises of future outcomes. There is no assurance that the results or events indicated or suggested by the forward-looking statements, or the plans, intentions, expectations or beliefs contained therein or upon which they are based, are correct or will in fact occur or be realized (or if they do, what benefits Pipestone Energy may derive therefrom).

In particular, but without limiting the foregoing, this news release contains forward-looking statements pertaining to the execution of future growth plans.

With respect to the forward-looking statements contained in this news release, Pipestone Energy has assessed material factors and made assumptions regarding, among other things: future commodity prices and currency exchange rates, including consistency of future oil, natural gas liquids (NGLs) and natural gas prices with current commodity price forecasts; the economic impacts of the COVID-19 pandemic and volatility caused by OPEC; Pipestone Energy’s continued ability to obtain qualified staff and equipment in a timely and cost-efficient manner; the predictability of future results based on past and current experience; the predictability and consistency of the legislative and regulatory regime governing royalties, taxes, environmental matters and oil and gas operations, both provincially and federally; Pipestone Energy’s ability to successfully market its production of oil, NGLs and natural gas; the timing and success of drilling and completion activities (and the extent to which the results thereof meet expectations); Pipestone Energy’s future production levels and amount of future capital investment, and their consistency with Pipestone Energy’s current development plans and budget; future capital expenditure requirements and the sufficiency thereof to achieve Pipestone Energy’s objectives; the successful application of drilling and completion technology and processes; the applicability of new technologies for recovery and production of Pipestone Energy’s reserves and other resources, and their ability to improve capital and operational efficiencies in the future; the recoverability of Pipestone Energy’s reserves and other resources; Pipestone Energy’s ability to economically produce oil and gas from its properties and the timing and cost to do so; the performance of both new and existing wells; future cash flows from production; future sources of funding for Pipestone Energy’s capital program, and its ability to obtain external financing when required and on acceptable terms; future debt levels; geological and engineering estimates in respect of Pipestone Energy’s reserves and other resources; the accuracy of geological and geophysical data and the interpretation thereof; the geography of the areas in which Pipestone Energy conducts exploration and development activities; the timely receipt of required regulatory approvals; the access, economic, regulatory and physical limitations to which Pipestone Energy may be subject from time to time; and the impact of industry competition.

The forward-looking statements contained herein reflect management’s current views, but the assessments and assumptions upon which they are based may prove to be incorrect. Although Pipestone Energy believes that its underlying assessments and assumptions are reasonable based on currently available information, undue reliance should not be placed on forward-looking statements, which are inherently uncertain, depend upon the accuracy of such assessments and assumptions, and are subject to known and unknown risks, uncertainties and other factors, both general and specific, many of which are beyond Pipestone Energy’s control, that may cause actual results or events to differ materially from those indicated or suggested in the forward-looking statements. Such risks and uncertainties include, but are not limited to, volatility in market prices and demand for oil, NGLs and natural gas and hedging activities related thereto; the ability to successfully integrate Blackbird’s and Pipestone Oil’s historical businesses and operations; general economic, business and industry conditions; variance of Pipestone Energy’s actual capital costs, operating costs and economic returns from those anticipated; the ability to find, develop or acquire additional reserves and the availability of the capital or financing necessary to do so on satisfactory terms; and risks related to the exploration, development and production of oil and natural gas reserves and resources. Additional risks, uncertainties and other factors are discussed in Pipestone Energy’s MD&A for the year ended December 31, 2020 dated March 10, 2021 and in Pipestone Energy’s annual information form dated March 10, 2021, copies of which are available electronically on Pipestone Energy’s SEDAR at www.sedar.com.

The forward-looking statements contained in this news release are made as of the date hereof and Pipestone Energy assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. All forward-looking statements herein are expressly qualified by this advisory.

Pipestone Energy Corp.

Pipestone Energy Corp. is an oil and gas exploration and production company with its head office located in Calgary, Alberta. The company is focused on developing its pure-play condensate-rich Montney asset in the Pipestone area near Grande Prairie. Pipestone Energy is committed to building long term value for our shareholders and values the partnerships that it is developing within its operating community. Pipestone Energy shares trade under the symbol PIPE on the TSX. For more information, visit www.pipestonecorp.com.

Pipestone Energy Contacts:

Paul Wanklyn President and Chief Executive Officer (587) 392-8407 [email protected]	Craig Nieboer Chief Financial Officer (587) 392-8408 [email protected]
Dan van Kessel VP Corporate Development (587) 392-8414 [email protected]

FARMINGTON HILLS, Mich., April 30, 2021 (GLOBE NEWSWIRE) — Level One Bancorp, Inc. (“Level One”) (Nasdaq: LEVL) today reported its financial results for the first quarter of 2021, which included net income of $9.0 million, or $1.10 diluted earnings per common share. This compares to net income of $8.4 million, or $1.02 diluted earnings per common share, in the preceding quarter and $4.1 million, or $0.53 diluted earnings per common share, in the first quarter of 2020.

Patrick J. Fehring, President and Chief Executive Officer of Level One, commented, “We are pleased to report record quarterly earnings for the first quarter of 2021. Net income in the first quarter of 2021 was $9.0 million, which represents an increase of 117.98% over the first quarter of the prior year and an increase of 7.00% over the prior quarter. During the quarter we experienced continued loan growth, a high level of residential loan production, moderately improving credit trends, stable core net interest margin, and strong deposit growth. Throughout this pandemic we continue to grow our business by meeting the needs of our current clients and significantly growing the number of new clients we serve. In 2021, we have provided solid support to local businesses and communities with our participation in the second round of the Paycheck Protection Program (“PPP”). Our participation in the second round of the program has resulted in the Level One team originating close to 1,500 loans to businesses for approximately $230.5 million from January 18, 2021 through April 27, 2021. An estimated 20,000 jobs were supported through these efforts. In addition to meeting the needs of existing Level One clients, we also assisted over 600 new business clients obtain critical funding to support their operations through this second round of PPP funding. I am appreciative of the extraordinary efforts of the Level One team during this COVID-19 pandemic as we continue to provide needed financial services to our community.”

First
Quarter 2021 Highlights

• Net income of $9.0 million increased 7.00% from $8.4 million in the preceding quarter
• Diluted earnings per common share of $1.10 increased 7.84% compared to $1.02 in the preceding quarter
• Net interest margin, on a fully taxable equivalent (“FTE”) basis, was 3.33%, compared to 3.27% in the preceding quarter
• Noninterest income decreased $832 thousand to $7.3 million in the first quarter of 2021, compared to $8.1 million in the preceding quarter
• Noninterest expense decreased $322 thousand to $15.1 million in the first quarter of 2021, compared to $15.5 million in the preceding quarter
• Provision for loan loss decreased $1.3 million to $265 thousand in the first quarter of 2021, compared to $1.5 million in the preceding quarter
• Total assets increased 5.31% to $2.57 billion at March 31, 2021, compared to $2.44 billion at December 31, 2020
• Total loans increased 8.02% to $1.86 billion at March 31, 2021, compared to $1.72 billion at December 31, 2020
• Total deposits increased 6.65% to $2.09 billion at March 31, 2021, compared to $1.96 billion at December 31, 2020
• Book value per common share increased 1.03% to $25.40 per common share at March 31, 2021, compared to $25.14 per common share at December 31, 2020
• Tangible book value per common share increased 0.76% to $19.78 per common share at March 31, 2021, compared to $19.63 per common share at December 31, 2020

Net Interest Income and Net Interest Margin

Level One’s net interest income increased $51 thousand, or 0.27%, to $19.2 million in the first quarter of 2021, compared to $19.1 million in the preceding quarter, and increased $4.3 million, or 29.26%, compared to $14.8 million in the first quarter of 2020. The increase in net interest income compared to the first quarter of 2020 was primarily due to increases of $1.8 million of interest income on loans and $178 thousand of interest income on investment securities partially offset by a $239 thousand decrease of interest income on fed funds sold and other investments. In addition, interest expense on deposits decreased $2.4 million primarily due to the target federal funds rate dropping 150 basis points in March 2020 in response to the COVID-19 pandemic.

Level One’s net interest margin, on a FTE basis, was 3.33% in the first quarter of 2021, compared to 3.27% in the preceding quarter and 3.42% in the first quarter of 2020. The increase in the net interest margin compared to the preceding quarter was primarily a result of the slight increase in loan interest rates during the first quarter of 2021. Loan yield on non-PPP loans was 4.33% for the first quarter of 2021 compared to 4.17% in the preceding quarter. The decrease in the net interest margin compared to the first quarter of 2020 was a result of lower yields across most interest-earning assets, mostly reflecting the impact of lower market interest rates. Average loan yield decreased 65 basis points to 4.35% for the first quarter of 2021 from 5.00% for the first quarter of 2020, primarily due to the target federal funds rate dropping 150 basis points in March 2020 in response to the COVID-19 pandemic. The decrease in loan yields was accompanied by a corresponding decrease in the cost of funds, which declined 93 basis points to 0.63% in the first quarter of 2021, compared to 1.56% in the first quarter of 2020 primarily due to lower interest rates paid as a result of revised internal deposit rates, mainly driven by the decreases in the target federal funds rate.

Noninterest Income

Level One’s noninterest income decreased $832 thousand, or 10.26%, to $7.3 million in the first quarter of 2021, compared to $8.1 million in the preceding quarter, and increased $2.6 million, or 55.44%, compared to $4.7 million in the first quarter of 2020. The decrease in noninterest income compared to the preceding quarter was primarily attributable to a decrease of $999 thousand in mortgage banking activities partially offset by an increase of $129 thousand in service charges on deposits. The decrease in the mortgage banking activities income compared to the fourth quarter of 2020 was primarily due to the increase in interest rates and secondary market pricing.

The increase in noninterest income year over year was primarily due to an increase of $3.2 million in mortgage banking activities and an increase of $143 thousand in service charges on deposits. This was partially offset by decreases of $509 thousand in net gains on sales of investment securities and $269 thousand in other charges and fees. The increase in mortgage banking activities compared to the first quarter of 2020 was primarily due to $65.5 million higher residential loan originations held for sale and $90.1 million higher residential loans sold primarily as a result of higher volumes caused by the lower interest rate environment. The decrease in net gains on sales of investment securities was due to fewer securities sold in the first quarter of 2021 than in the first quarter of 2020. The decrease in other charges and fees was primarily due to a decrease in interest rate swap fees.

Noninterest Expense

Level One’s noninterest expense decreased $322 thousand, or 2.08%, to $15.1 million in the first quarter of 2021, compared to $15.5 million in the preceding quarter, and increased $577 thousand, or 3.96%, compared to $14.6 million in the first quarter of 2020. The decrease in noninterest expense compared to the preceding quarter was primarily attributable to decreases of $292 thousand in salary and employee benefits, $151 thousand in professional service fees, and $114 thousand in marketing expense. These decreases were partially offset by an increase of $365 thousand in data processing expense. The decrease in salary and employee benefits compared to the fourth quarter of 2020 was primarily due to decreases of $425 thousand in incentive compensation, $111 thousand in supplemental employee retirement plan (“SERP”) expense, and $79 thousand in restricted stock expense. This was partially offset by a $154 thousand increase in mortgage commissions and a $197 thousand increase in social security taxes due to the new year resetting taxable income caps. The decrease in professional service fees was due primarily to internal audit fees and the cyclical nature of services performed. The decrease in marketing expense was primarily due to higher than usual donations during the preceding quarter and advertising. The increase in data processing expense was due primarily to the new loan processing system used for the PPP loans.

The increase in noninterest expense year over year was mainly attributable to increases of $1.3 million in salary and employee benefits, $377 thousand in data processing expense, $251 thousand in professional service fees, $180 thousand in occupancy and equipment expense, and $113 thousand in FDIC premium expense. These increases were partially offset by decreases of $1.5 million in acquisition and due diligence fees and $149 thousand in other expense. The increase in salary and employee benefits between the periods was primarily due to increases of $1.2 million in mortgage commissions expense and $170 thousand in contract labor expenses incurred for the PPP loan program. The increase in data processing expense was due to the same reasons mentioned above. The increase in professional service fees was primarily related to increased residential mortgage volumes and consulting fees for residential mortgage systems incurred as well as increased audit fees. The increase in occupancy and equipment expense was primarily attributable to additional software maintenance and licensing. The increase in FDIC premium expense was primarily due to a lower leverage ratio and an increase in assets year over year. The decrease in acquisition and due diligence fees was primarily due to the merger with Ann Arbor State Bank in the first quarter of 2020. The decrease in other expense was primarily due to the provision on unfunded commitments.

The efficiency ratio, which is a measure of operating expenses as a percentage of net interest income and noninterest income, for the first quarter of 2021 was 57.27%, compared to 56.81% for the preceding quarter and 74.64% in the first quarter of 2020. The decrease in the efficiency ratio year over year was primarily driven by the additional income provided by the acquisition of Ann Arbor State Bank without adding a proportional amount of expense as well as the increase in mortgage banking income, net of commissions, as a result of higher loan volumes.

Income Tax Expense

Level One’s income tax provision was $2.1 million, or 18.78% of pretax income, in the first quarter of 2021, as compared to $1.8 million, or 18.05% of pretax income, in the preceding quarter and $349 thousand, or 7.83% of pretax income, in the first quarter of 2020. The increase in income tax provision year over year was primarily as a result of tax benefits recognized during the first quarter of 2020 that did not occur again in the first quarter of 2021. There was a $290 thousand tax benefit related to the Ann Arbor State Bank net operating loss (NOL) resulting from the CARES Act provision that allowed for NOLs generated in 2018-2020 to be carried back five years. Additionally, disqualified dispositions of Ann Arbor State Bank’s stock options generated a $175 thousand tax benefit.

Loan Portfolio

Total loans were $1.86 billion at March 31, 2021, an increase of $138.2 million, or 8.02%, from $1.72 billion at December 31, 2020, and up $395.3 million, or 26.96%, from $1.47 billion at March 31, 2020. Total loans, excluding PPP loans, increased by $22.5 million, or 1.57%, compared to December 31, 2020. In addition, PPP loans increased $115.6 million, net of SBA forgiveness, compared to December 31, 2020 due to the second round of PPP funding. The growth in total loans compared to March 31, 2020 was primarily due to the origination of $649.6 million of PPP loans during the second and third quarters of 2020 and first quarter of 2021, partially offset by $243.8 million of PPP loans forgiven by the SBA. This was partially offset by a net decrease of $10.5 million in the remainder of the portfolio.

Investment Securities

The investment securities portfolio grew $43.5 million, or 14.38%, to $346.3 million at March 31, 2021, from $302.7 million at December 31, 2020, and up $115.6 million, or 50.11%, from $230.7 million at March 31, 2020. The increase in the investment securities portfolio compared to December 31, 2020 was primarily due to the purchase of $59.1 million of investment securities, offset in part by $2.7 million of sales, calls, or maturity of investment securities. The increase in investment securities compared to March 31, 2020, was primarily due to the purchase of $163.2 million of securities between the two dates using the excess cash balances generated by the payoffs of PPP loans, partially offset by $25.9 million of sales, calls, or maturity of investment securities.

Deposits

Total deposits were $2.09 billion at March 31, 2021, an increase of $130.7 million, or 6.65%, from $1.96 billion at December 31, 2021, and up $623.4 million, or 42.39%, from $1.47 billion at March 31, 2020. The growth in deposits compared to December 31, 2020 and March 31, 2020 was primarily due to organic deposit growth as a result of customers increasing their liquidity. Total deposit composition at March 31, 2021 consisted of 42.28% of demand deposit accounts, 31.14% of savings and money market accounts and 26.58% of time deposits.

Borrowings

Total debt outstanding was $231.0 million at March 31, 2021, an increase of $764 thousand, or 0.35%, from $230.3 million at December 31, 2020, and down $25.2 million, or 9.83%, from $256.2 million at March 31, 2020. The increase in debt outstanding compared to December 31, 2020 was primarily due an increase in repurchase agreements. The decrease in total borrowings compared to March 31, 2020 was primarily due to decreases of $25.0 million in long-term FHLB advances and $4.0 million in short-term FHLB advances that resulted from excess liquidity from higher deposit levels partially offset by an increase of $3.8 million in repurchase agreements.

Asset Quality

Nonaccrual loans were $15.4 million, or 0.83% of total loans, at March 31, 2021, a decrease of $3.5 million from nonaccrual loans of $18.8 million, or 1.09% of total loans, at December 31, 2020, and an increase of $140 thousand from nonaccrual loans of $15.2 million, or 1.04% of total loans, at March 31, 2020. The decrease in nonaccrual loans compared to the prior quarter-end was primarily due to a $2.7 million paydown of a commercial loan relationship and two residential loan relationships totaling $500 thousand moving to accrual status.

Level One had no other real estate owned assets at March 31, 2021 and December 31, 2020, compared to $2.1 million at March 31, 2020. Nonperforming assets, consisting of nonaccrual loans and other real estate owned, as a percentage of total assets were 0.60% at March 31, 2021, compared to 0.77% at December 31, 2020, and 0.89% at March 31, 2020.

Performing troubled debt restructured loans, which are not reported as nonaccrual loans but rather as part of impaired loans, were $765 thousand at March 31, 2021, $1.0 million at December 31, 2020, and $1.1 million at March 31, 2020. Loans to borrowers who are in financial difficulty and who have been granted concessions that may include interest rate reductions, forbearance agreements, and principal deferral or reduction, are categorized as troubled debt restructured loans. In accordance with bank regulatory guidance, troubled debt restructurings do not include short-term modifications made on a good-faith basis in response to the COVID-19 pandemic to borrowers who were current prior to any relief. As of March 31, 2021, there were $22.2 million of loans that remained on a COVID-related deferral compared to $19.8 million as of December 31, 2020. As of March 31, 2021, $10.7 million of those loans had payments deferred greater than six months compared to $11.4 million as of December 31, 2021.

Net recoveries in the first quarter of 2021 were $17 thousand, compared to $496 thousand of net chargeoffs, or 0.11% of average loans on an annualized basis, for the preceding quarter and $174 thousand of net chargeoffs, or 0.05% of average loans on an annualized basis, in the first quarter of 2020. The change compared to the fourth quarter of 2020 was due primarily to decreases of $378 thousand in commercial loan chargeoffs and $176 thousand in residential loan chargeoffs. The year over year change was primarily due to commercial loan chargeoffs in the first quarter of 2020.

Level One’s provision for loan losses in the first quarter of 2021 was a provision expense of $265 thousand, compared to $1.5 million in the preceding quarter and $489 thousand in the first quarter of 2020. The decrease in the provision expense quarter over quarter was primarily due to a decrease of $1.7 million in general reserves as a result of a larger reserve increase in the fourth quarter of 2020 related to the impact of the COVID-19 pandemic on the loan portfolio, as well as a $513 thousand decrease in net chargeoffs, partially offset by an increase in specific reserves of $661 thousand. The decrease in the provision expense year over year was primarily due to a decrease in general reserves of $250 thousand as well as a decrease of $191 thousand in net chargeoffs. This was partially offset by a $215 thousand increase in specific reserves. The Company will continue to evaluate the fluid situation in regard to the COVID-19 pandemic and will take further action to appropriately record additional provision for loan losses or decrease the level of the provision for loan losses should there be any indications of changes in the credit quality of our portfolio as a result of the COVID-19 pandemic.

The allowance for loan losses was $22.6 million, or 1.21% of total loans, at March 31, 2021, compared to $22.3 million, or 1.29% of total loans, at December 31, 2020, and $13.0 million, or 0.89% of total loans, at March 31, 2020. Excluding $405.8 million and $290.1 million of PPP loans, respectively, the allowance for loan losses as a percentage of total loans was 1.55% in the first quarter of 2021, compared to 1.56% in the preceding quarter (See section entitled “GAAP Reconciliation of Non-GAAP Financial Measures” for further details). The allowance for loan losses as a percentage of total loans increased compared to March 31, 2020, primarily due to the trends in delinquencies and nonaccrual loans as well as the stress on the commercial and industrial and commercial real estate owner occupied portfolios, primarily in the restaurant and transportation industries, as a result of the uncertainty surrounding the COVID-19 pandemic. As of March 31, 2021, the allowance for loan losses as a percentage of nonaccrual loans was 146.95%, compared to 118.50% at December 31, 2020, and 85.32% at March 31, 2020. The Company will re-evaluate the appropriateness of the allowance for loan losses in future quarters as needed.

Capital

Total shareholders’ equity was $217.2 million at March 31, 2021, an increase of $1.9 million, or 0.86%, compared with $215.3 million at December 31, 2020 primarily as a result of an increase in retained earnings partially offset by a decrease in accumulated other comprehensive income. Total shareholders’ equity increased $41.4 million, or 23.56%, from $175.8 million at March 31, 2020 attributable to the issuance of preferred stock in the third quarter of 2020 as well as an increase in retained earnings.

Recent Developments

First Quarter Common Stock Dividend

: On March 17, 2021, Level One’s Board of Directors declared a quarterly cash dividend of $0.06 per share. This dividend was paid on April 15, 2021, to stockholders of record at the close of business on March 31, 2021.

Second Quarter Preferred Stock Dividend:
On April 20, 2021, Level One’s Board of Directors declared a quarterly cash dividend of $46.88 per share on its 7.50% Non-Cumulative Perpetual Preferred Stock, Series B. Holders of depositary shares will receive $0.4688 per depositary share. The dividend is payable on May 15, 2021, to shareholders of record at the close of business on April 30, 2021.

Level One’s Response to the COVID-19 Pandemic

: Level One has taken comprehensive steps to help our customers, team members and communities during the current COVID-19 pandemic health crisis. For our customers, we have provided loan payment deferrals and offered fee waivers, among other actions. In addition, from January 18 through April 27, 2021, Level One has funded 1,487 PPP loans for $230.5 million of which 1.150 applications were for loans $150,000 or below.

We are continuing to enable the vast majority of our main office team members to work remotely each day. We have also taken significant actions to help ensure the safety of our team members whose roles require them to come into the office, which includes the development, implementation and communication of protocols necessary for those who return. As of March 31, 2021, we opened branches for walk in services. We will continue to evaluate this fluid situation and take additional actions as necessary.

About Level One Bancorp, Inc.

Level One Bancorp, Inc. is the holding company for Level One Bank, a full-service commercial and consumer bank headquartered in Michigan with assets of approximately $2.57 billion as of March 31, 2021. It operates sixteen banking centers throughout Metro Detroit, Ann Arbor, Grand Rapids, and Jackson and provides a variety of commercial, small business, and consumer banking services. Level One Bank’s success has been recognized both locally and nationally as the U.S. Small Business Administration’s (SBA) “Community Lender of the Year,” one of American Banker Magazine’s “Top 200 Community Banks in the Nation,” one of Metro Detroit’s “Best & Brightest Companies to Work For” and more. Level One Bank’s business banking division provides a broad spectrum of products including lines of credit, term loans, leases, commercial mortgages, SBA loans, MEDC loans, export-import financing, and a full suite of treasury management services. The consumer banking division offers a range of personal checking, savings and CD products and a complete array of consumer loan products including residential mortgages, new construction and renovation loans, home equity lines of credit, auto loans, and credit card services. Level One Bank offers a variety of digital banking services including online banking, robust mobile banking apps, online account opening and online loan applications for individuals and businesses. Level One Bank offers the sophistication of a big bank, the heart of a community bank, and the spirit of an entrepreneur. For more information, visit www.levelonebank.com.

Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect management’s current views of future events and operations. These forward-looking statements are based on the information currently available to the Company as of the date of this release. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “will,” “propose,” “may,” “plan,” “seek,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “continue” or similar technology. It is important to note that these forward-looking statements are not guarantees of future performance and involve risk and uncertainties, including, but not limited to, the effects of the COVID-19 pandemic, including its potential 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, the ability of the Company to implement its strategy and expand its lending operations, changes in interest rates and other general economic, business and political conditions, including changes in the financial markets, changes in benchmark interest rates used to price loans and deposits including the expected elimination of LIBOR, and changes in tax laws, regulations and guidance, as well as other risks described in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

Summary Consolidated Financial Information
(Unaudited)	As of or for the three months ended,
(Dollars in thousands, except per share data)	March 31, 2021				December 31, 2020				September 30, 2020				June 30, 2020				March 31, 2020
Earnings Summary
Interest income	$	21,551			$	22,181			$	20,245			$	20,396			$	19,817
Interest expense	2,394				3,075				3,648				4,163				4,997
Net interest income	19,157				19,106				16,597				16,233				14,820
Provision for loan losses	265				1,538				4,270				5,575				489
Noninterest income	7,278				8,110				9,125				7,789				4,690
Noninterest expense	15,139				15,461				15,126				15,083				14,562
Income before income taxes	11,031				10,217				6,326				3,364				4,459
Income tax provision	2,072				1,844				1,117				643				349
Net income	$	8,959			$	8,373			$	5,209			$	2,721			$	4,110
Preferred stock dividends	469				479				—				—				—
Net income available to common shareholders	8,490				7,894				5,209				2,721				4,110
Net income allocated to participating securities	111				65				40				19				47
Net income attributable to common shareholders	$	8,379			$	7,829			$	5,169			$	2,702			$	4,063
Per Share Data
Basic earnings per common share	$	1.11			$	1.02			$	0.68			$	0.35			$	0.53
Diluted earnings per common share	1.10				1.02				0.67				0.35				0.53
Diluted earnings per common share, excluding acquisition and due diligence fees (1)	1.10				1.02				0.67				0.37				0.68
Book value per common share	25.40				25.14				24.06				23.31				22.74
Tangible book value per common share (1)	19.78				19.63				18.74				18.09				17.54
Preferred shares outstanding (in thousands)	10				10				10				—				—
Common shares outstanding (in thousands)	7,630				7,634				7,734				7,734				7,731
Average basic common shares (in thousands)	7,528				7,642				7,675				7,676				7,637
Average diluted common shares (in thousands)	7,612				7,695				7,712				7,721				7,738
Selected Period End Balances
Total assets	$	2,572,726			$	2,442,982			$	2,446,447			$	2,541,696			$	1,936,823
Securities available-for-sale	346,266				302,732				253,527				217,172				230,671
Total loans	1,861,691				1,723,537				1,843,888				1,815,353				1,466,407
Total deposits	2,093,965				1,963,312				1,943,435				1,821,351				1,470,608
Total liabilities	2,355,539				2,227,655				2,236,979				2,361,437				1,761,055
Total shareholders’ equity	217,187				215,327				209,468				180,259				175,768
Total common shareholders’ equity	193,815				191,955				186.098				180,259				175,768
Tangible common shareholders’ equity (1)	150,887				149,844				144,963				139,913				135,578
Performance and Capital Ratios
Return on average assets (annualized)	1.44		%		1.35		%		0.83		%		0.46		%		0.87		%
Return on average equity (annualized)	16.31				15.61				10.48				6.02				9.40
Net interest margin (fully taxable equivalent)(2)	3.33				3.27				2.80				2.98				3.42
Efficiency ratio (noninterest expense/net interest income plus noninterest income)	57.27				56.81				58.81				62.79				74.64
Dividend payout ratio	4.50				4.90				7.41				14.22				7.52
Total shareholders’ equity to total assets	8.44				8.81				8.56				7.09				9.08
Tangible common equity to tangible assets (1)	5.96				6.24				6.03				5.59				7.15
Common equity tier 1 to risk-weighted assets	9.63				9.30				8.83				8.76				8.10
Tier 1 capital to risk-weighted assets	11.11				10.80				10.31				8.76				8.10
Total capital to risk-weighted assets	15.18				14.91				14.39				12.81				11.68
Tier 1 capital to average assets (leverage ratio)	7.15				6.93				7.17				6.21				7.08
Asset Quality Ratios:
Net charge-offs to average loans	—		%		0.11		%		0.02		%		0.34		%		0.05		%
Nonperforming assets as a percentage of total assets	0.60				0.77				0.79				0.33				0.89
Nonaccrual loans as a percent of total loans	0.83				1.09				1.04				0.46				1.04
Allowance for loan losses as a percentage of total loans	1.21				1.29				1.15				0.94				0.89
Allowance for loan losses as a percentage of nonaccrual loans	146.95				118.50				110.32				206.37				85.32
Allowance for loan losses as a percentage of nonaccrual loans, excluding allowance allocated to loans accounted for under ASC 310-30	142.62				114.95				105.46				195.04				80.34

⁽¹⁾ See section entitled “GAAP Reconciliation of Non-GAAP Financial Measures” below.
⁽²⁾ Presented on a tax equivalent basis using a 21% tax rate.

Consolidated Balance Sheets
	As of
	March 31,				December 31,				March 31,
(Dollars in thousands)	2021				2020				2020
Assets	(Unaudited)								(Unaudited)
Cash and cash equivalents	$	224,683			$	264,071			$	104,867
Securities available-for-sale	346,266				302,732				230,671
Other investments	14,398				14,398				12,398
Mortgage loans held for sale, at fair value	19,550				43,482				18,305
Loans:
Originated loans	1,647,847				1,498,458				1,188,107
Acquired loans	213,844				225,079				278,300
Total loans	1,861,691				1,723,537				1,466,407
Less: Allowance for loan losses	(22,578		)		(22,297		)		(12,989		)
Net loans	1,839,113				1,701,240				1,453,418
Premises and equipment, net	15,523				15,834				16,673
Goodwill	35,554				35,554				36,216
Mortgage servicing rights, net	4,346				3,361				196
Other intangible assets, net	3,028				3,196				3,778
Other real estate owned	—				—				2,093
Bank-owned life insurance	18,314				18,200				17,848
Income tax benefit	5,823				3,686				630
Interest receivable and other assets	46,128				37,228				39,730
Total assets	$	2,572,726			$	2,442,982			$	1,936,823
Liabilities
Deposits:
Noninterest-bearing demand deposits	$	744,688			$	618,677			$	410,152
Interest-bearing demand deposits	140,629				127,920				105,197
Money market and savings deposits	652,091				619,900				401,238
Time deposits	556,557				596,815				554,021
Total deposits	2,093,965				1,963,312				1,470,608
Borrowings	186,440				185,684				211,787
Subordinated notes	44,600				44,592				44,447
Other liabilities	30,534				34,067				34,213
Total liabilities	2,355,539				2,227,655				1,761,055
Shareholders’ equity
Preferred stock, no par value per share; authorized-50,000 shares; issued and outstanding – 10,000 shares, with a liquidation preference of $2,500 per share, at March 31, 2021 and December 31, 2020 and 0 at March 31, 2020	23,372				23,372				—
Common stock, no par value per share; authorized – 20,000,000 shares; issued and outstanding – 7,630,342 shares at March 31, 2021, 7,633,780 shares at December 31, 2020 and 7,730,822 shares at March 31, 2020	86,529				87,615				88,910
Retained earnings	104,191				96,158				81,489
Accumulated other comprehensive income, net of tax	3,095				8,182				5,369
Total shareholders’ equity	217,187				215,327				175,768
Total liabilities and shareholders’ equity	$	2,572,726			$	2,442,982			$	1,936,823

Consolidated Statements of Income
(Unaudited)	For the three months ended
	March 31,				December 31,				March 31,
(In thousands, except per share data)	2021				2020				2020
Interest income
Originated loans, including fees	$	16,822			$	17,439			$	14,039
Acquired loans, including fees	3,101				3,234				4,089
Securities:
Taxable	850				747				684
Tax-exempt	623				592				611
Federal funds sold and other	155				169				394
Total interest income	21,551				22,181				19,817
Interest Expense
Deposits	1,387				1,954				3,832
Borrowed funds	466				487				530
Subordinated notes	541				634				635
Total interest expense	2,394				3,075				4,997
Net interest income	19,157				19,106				14,820
Provision expense for loan losses	265				1,538				489
Net interest income after provision for loan losses	18,892				17,568				14,331
Noninterest income
Service charges on deposits	777				648				634
Net gain on sales of securities	20				—				529
Mortgage banking activities	5,811				6,810				2,588
Other charges and fees	670				652				939
Total noninterest income	7,278				8,110				4,690
Noninterest expense
Salary and employee benefits	9,922				10,214				8,630
Occupancy and equipment expense	1,708				1,776				1,528
Professional service fees	643				794				392
Acquisition and due diligence fees	—				—				1,471
FDIC premium expense	324				397				211
Marketing expense	133				247				222
Loan processing expense	331				245				234
Data processing expense	1,224				859				847
Core deposit premium amortization	168				192				192
Other expense	686				737				835
Total noninterest expense	15,139				15,461				14,562
Income before income taxes	11,031				10,217				4,459
Income tax provision	2,072				1,844				349
Net income	8,959				8,373				4,110
Preferred stock dividends	469				479				—
Net income attributable to common shareholders	$	8,490			$	7,894			$	4,110
Earnings per common share:
Basic earnings per common share	$	1.11			$	1.02			$	0.53
Diluted earnings per common share	$	1.10			$	1.02			$	0.53
Cash dividends declared per common share	$	0.06			$	0.05			$	0.05
Weighted average common shares outstanding—basic	7,528				7,642				7,637
Weighted average common shares outstanding—diluted	7,612				7,695				7,738

Net Interest Income and Net Interest Margin
(Unaudited)	For the three months ended
	March 31,				December 31,				March 31,
(Dollars in thousands)	2021				2020				2020
Average Balance Sheets:
Gross loans(1)	$	1,856,030			$	1,832,912			$	1,458,897
Investment securities: (2)
Taxable	214,945				182,522				117,835
Tax-exempt	102,208				92,792				93,858
Interest earning cash balances	168,906				213,502				77,475
Other investments	14,398				14,398				12,387
Total interest-earning assets	$	2,356,487			$	2,336,126			$	1,760,452
Non-earning assets	139,100				138,989				121,235
Total assets	$	2,495,587			$	2,475,115			$	1,881,687
Interest-bearing demand deposits	132,816				123,201				106,236
Money market and savings deposits	604,491				611,162				403,712
Time deposits	584,085				601,900				547,838
Borrowings	185,688				187,399				185,586
Subordinated notes	44,598				44,569				44,465
Total interest-bearing liabilities	$	1,551,678			$	1,568,231			$	1,287,837
Noninterest bearing demand deposits	692,617				659,333				393,519
Other liabilities	31,608				32,990				25,493
Shareholders’ equity	219,684				214,561				174,838
Total liabilities and shareholders’ equity	$	2,495,587			$	2,475,115			$	1,881,687
Yields: (3)
Earning Assets
Gross loans	4.35		%		4.49		%		5.00		%
Investment securities:
Taxable	1.60		%		1.63		%		2.33		%
Tax-exempt	3.08		%		3.14		%		3.18		%
Interest earning cash balances	0.10		%		0.11		%		1.33		%
Other investments	3.18		%		2.98		%		4.48		%
Total interest earning assets	3.74		%		3.80		%		4.56		%
Interest-bearing liabilities
Interest-bearing demand deposits	0.16		%		0.19		%		0.47		%
Money market and savings deposits	0.25		%		0.35		%		1.10		%
Time deposits	0.66		%		0.89		%		1.91		%
Borrowings	1.02		%		1.03		%		1.15		%
Subordinated notes	4.92		%		5.66		%		5.74		%
Total interest-bearing liabilities	0.63		%		0.78		%		1.56		%
Interest Spread	3.11		%		3.02		%		3.00		%
Net interest margin (4)	3.30		%		3.25		%		3.39		%
Tax equivalent effect	0.03		%		0.02		%		0.03		%
Net interest margin on a fully tax equivalent basis	3.33		%		3.27		%		3.42		%

⁽¹⁾ Includes nonaccrual loans.
⁽²⁾ For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
⁽³⁾ Average rates and yields are presented on an annual basis and includes a taxable equivalent adjustment to interest income of $152 thousand, $140 thousand, and $130 thousand on tax-exempt securities for the three months ended March 31, 2021, December 31, 2020, and March 31, 2020, respectively, using a federal income tax rate of 21%.
⁽⁴⁾ Net interest margin represents net interest income divided by average total interest-earning assets.

Loan Composition
	As of
	March 31,				December 31,				September 30,				June 30,				March 31,
(Dollars in thousands)	2021				2020				2020				2020				2020
Commercial real estate:	(Unaudited)								(Unaudited)				(Unaudited)				(Unaudited)
Non-owner occupied	$	449,690			$	445,810			$	460,708			$	451,906			$	450,694
Owner-occupied	300,175				275,022				269,481				273,577				278,216
Total commercial real estate	749,865				720,832				730,189				725,483				728,910
Commercial and industrial	794,096				685,504				807,923				790,353				469,227
Residential real estate	316,089				315,476				304,088				294,041				262,894
Consumer	1,641				1,725				1,688				5,476				5,376
Total loans	$	1,861,691			$	1,723,537			$	1,843,888			$	1,815,353			$	1,466,407

Impaired Assets
	As of
	March 31,				December 31,				September 30,				June 30,				March 31,
(Dollars in thousands)	2021				2020				2020				2020				2020
Nonaccrual loans	(Unaudited)								(Unaudited)				(Unaudited)				(Unaudited)
Commercial real estate	$	4,542			$	7,320			$	7,022			$	3,649			$	3,721
Commercial and industrial	6,822				7,490				8,078				2,377				9,364
Residential real estate	3,987				3,991				4,151				2,226				2,124
Consumer	13				15				15				16				15
Total nonaccrual loans	15,364				18,816				19,266				8,268				15,224
Other real estate owned	—				—				—				61				2,093
Total nonperforming assets	15,364				18,816				19,266				8,329				17,317
Performing troubled debt restructurings
Commercial and industrial	335				546				550				549				541
Residential real estate	430				432				599				600				599
Total performing troubled debt restructurings	765				978				1,149				1,149				1,140
Total impaired assets	$	16,129			$	19,794			$	20,415			$	9,478			$	18,457
Loans 90 days or more past due and still accruing	$	328			$	269			$	552			$	903			$	437

GAAP Reconciliation of Non-GAAP Financial Measures

Some of the financial measures included in this report are not measures of financial condition or performance recognized by GAAP. These non-GAAP financial measures include tangible common shareholders’ equity, tangible book value per common share, the ratio of tangible common equity to tangible assets, net income and diluted earnings per common share excluding acquisition and due diligence fees, and allowance for loan loss as a percentage of total loans, excluding PPP loans. Our management uses these non-GAAP financial measures in its analysis of our performance, and we believe that providing this information to financial analysts and investors allows them to evaluate capital adequacy, as well as better understand and evaluate the Company’s core financial results for the periods in question.

The following presents these non-GAAP financial measures along with their most directly comparable financial measure calculated in accordance with GAAP:

Tangible Common Shareholders’ Equity, Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Common Share
	As of
(Dollars in thousands, except per share data)	March 31, 2021				December 31, 2020				September 30, 2020				June 30, 2020				March 31, 2020
	(Unaudited)								(Unaudited)				(Unaudited)				(Unaudited)
Total shareholders’ equity	$	217,187			$	215,327			$	209,468			$	180,259			$	175,768
Less:
Preferred stock	23,372				23,372				23,370				—				—
Total common shareholders’ equity	193,815				191,955				186,098				180,259				175,768
Less:
Goodwill	35,554				35,554				35,554				35,554				36,216
Mortgage servicing rights, net	4,346				3,361				2,193				1,213				196
Other intangible assets, net	3,028				3,196				3,388				3,579				3,778
Tangible common shareholders’ equity	$	150,887			$	149,844			$	144,963			$	139,913			$	135,578
Common shares outstanding (in thousands)	7,630				7,634				7,734				7,734				7,731
Tangible book value per common share	$	19.78			$	19.63			$	18.74			$	18.09			$	17.54
Total assets	$	2,572,726			$	2,442,982			$	2,446,447			$	2,541,696			$	1,936,823
Less:
Goodwill	35,554				35,554				35,554				35,554				36,216
Mortgage servicing rights, net	4,346				3,361				2,193				1,213				196
Other intangible assets, net	3,028				3,196				3,388				3,579				3,778
Tangible assets	$	2,529,798			$	2,400,871			$	2,405,312			$	2,501,350			$	1,896,633
Tangible common equity to tangible assets	5.96		%		6.24		%		6.03		%		5.59		%		7.15		%

Adjusted Income and Diluted Earnings Per Share
	For the three months ended
(Dollars in thousands, except per share data)	March 31, 2021				December 31, 2020				September 30, 2020				June 30, 2020				March 31, 2020
	(Unaudited)								(Unaudited)				(Unaudited)				(Unaudited)
Net income, as reported	$	8,959			$	8,373			$	5,209			$	2,721			$	4,110
Acquisition and due diligence fees	—				—				17				176				1,471
Income tax (benefit) expense (1)	—				2				(4		)		(34		)		(295		)
Net income, excluding acquisition and due diligence fees	$	8,959			$	8,375			$	5,222			$	2,863			$	5,286
Diluted earnings per share, as reported	$	1.10			$	1.02			$	0.67			$	0.35			$	0.53
Effect of acquisition and due diligence fees, net of income tax benefit	—				—				—				0.02				0.15
Diluted earnings per common share, excluding acquisition and due diligence fees	$	1.10			$	1.02			$	0.67			$	0.37			$	0.68
(1) Assumes income tax rate of 21% on deductible acquisition expenses.

Allowance for Loan Loss as a Percentage of Total Loans, Excluding PPP Loans
	As of
(Dollars in thousands, except per share data)	March 31, 2021				December 31, 2020				September 30, 2020				June 30, 2020				March 31, 2020
	(Unaudited)								(Unaudited)				(Unaudited)				(Unaudited)
Total loans	$	1,861,691			$	1,723,537			$	1,843,888			$	1,815,353			$	1,466,407
Less:
PPP loans	405,770				290,135				392,521				388,264				—
Total loans, excluding PPP loans	$	1,455,921			$	1,433,402			$	1,451,367			$	1,427,089			$	1,466,407
Allowance for loan loss	$	22,578			$	22,297			$	21,254			$	17,063			$	12,989
Allowance for loan loss as a percentage of total loans	1.21		%		1.29		%		1.15		%		0.94		%		0.89		%
Allowance for loan loss as a percentage of total loans, excluding PPP loans	1.55		%		1.56		%		1.46		%		1.20		%		0.89		%

Media Contact:
Nicole Ransom
(248) 538-2183

Investor Relations Contact:
Peter Root
(248) 538-2186

TORONTO, April 30, 2021 (GLOBE NEWSWIRE) — Acerus Pharmaceuticals Corporation (the “Company” or “Acerus”) (TSX:ASP; OTCQB:ASPCF) today announced that it has entered into a US$15 million subordinated secured loan facility (the “Loan Facility”), which will be made available to the Company by way of one or more advances under a secured grid promissory note with First Generation Capital Inc. (“First Generation”), a company affiliated with the Chairman of the Board of Directors of Acerus.¹

The Loan Facility is subordinated to the existing facility with SWK Funding LLC (“SWK”) and bears interest at a rate of eight percent (8%) per annum. Subject to the terms of the subordination and intercreditor agreement between First Generation and SWK, the Loan Facility is repayable in full on December 31, 2024, with cash payments of interest and/or principal subject to certain exceptions related to the Company’s market capitalization and the outstanding principal amount of the senior facility with SWK; the Loan Facility can be prepaid in full or in part without penalty following repayment in full of indebtedness owed to SWK. The proceeds from the Loan Facility will be used for ongoing general working capital. A copy of the secured grid promissory note covering the Loan Facility will be filed under the Company’s profile on SEDAR at www.sedar.com.

“We have an ambitious goal of rapidly commercializing NATESTO® in the United States and, as such, need to ensure we have the capital in place to execute on the opportunity at hand. By working with First Generation to establish this Loan Facility, we can focus on leveraging our operations and continuing to implement a successful growth strategy,” said Ed Gudaitis, President and Chief Executive Officer of Acerus. “This financing, combined with our ongoing expansion plans and sales force development efforts, set the stage for success in 2021 and beyond.”

In light of First Generation’s relationship to the Chairman of the Board of Directors of Acerus, the independent members of the Board of Directors, led by the Lead Independent Director, separately met to consider and discuss the Loan Facility. Following the review of such independent members of the Board of Directors, it was unanimously determined that entering into the Loan Facility was in the best interests of Acerus.

About Acerus

Acerus Pharmaceuticals Corporation is a Canadian-based specialty pharmaceutical company focused on the commercialization and development of innovative prescription products that improve patient experience, with a primary focus in the field of men’s health. The Company commercializes its products via its own salesforce in the United States and Canada, and through a global network of licensed distributors in other territories.

Acerus’ shares trade on TSX under the symbol ASP and on OTCQB under the symbol ASPCF. For more information, visit www.aceruspharma.com and follow us on Twitter and LinkedIn.

Notice regarding forward-looking statements

Information in this press release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information are assumptions regarding our future operational results. These assumptions, although considered reasonable by the company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual performance of the company is subject to a number of risks and uncertainties, including with respect to the use of proceeds of the Loan Facility, the anticipated benefits of the Loan Facility and the Company’s ability to meet its obligations under the Loan Facility, and could differ materially from what is currently expected as set out above. For more exhaustive information on these risks and uncertainties you should refer to our annual information form dated March 10, 2021 that is available on www.sedar.com. Forward-looking information contained in this press release is based on our current estimates, expectations and projections, which we believe are reasonable as of the current date. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

(1) A material change report was not filed at least 21 days prior to the closing of the Loan Facility from First Generation as the terms and conditions of such arrangements were not yet finalized at such time.

Company Contact

[email protected]

Investor Relations Contact

Chris Witty
Acerus Investor Relations
(646) 438-9385
[email protected]        

FORT LAUDERDALE, Fla., April 30, 2021 (GLOBE NEWSWIRE) — Motus GI Holdings, Inc., (NASDAQ: MOTS) (“Motus GI” or the “Company”), a medical technology company providing endoscopy solutions that improve clinical outcomes and enhance the cost-efficiency associated with the diagnosis and management of gastrointestinal conditions, announced today that it has received 510(k) clearance from the U.S. Food and Drug Administration (“FDA”) for a version of the Pure-Vu® System that is compatible with gastroscopes used during upper gastrointestinal (GI) endoscopy procedures to remove blood, blood clots and debris in order to provide a clear field-of-view for the endoscopist. This proprietary technology is the latest innovation for the Pure-Vu System platform that is specifically designed to integrate with therapeutic gastroscopes to enable safe and rapid cleansing during the procedure, while preserving established procedural workflow and techniques.

“We are pleased to receive FDA clearance for the Pure-Vu System now compatible with gastroscopes for the purpose of providing enhanced visibility during upper GI endoscopies. We believe this regulatory milestone broadens our ability to participate in a larger percentage of procedures performed by our key customers, providing us a natural extension of our commercial strategy. In addition, we have received consistent feedback from leading physicians indicating their view that there is a substantial unmet need in this area, particularly for Upper GI Bleed procedures,” stated Tim Moran, Chief Executive Officer of Motus GI. “This FDA clearance is a testament to our innovation team’s ability to deliver on customer needs in a timely manner.”

Upper GI bleeds occurred in the U.S. at a rate of approximately 400,000 cases per year in 2019, according to iData Research Inc. The existence of blood and blood clots in these patients can impair a physician’s view, making it difficult to identify the bleed source. We believe removing adherent blood clots from the field of view is a significant need in allowing a physician the ability to identify and treat the bleed source. The mortality rate of this condition can reach up to approximately 10%, as noted in Thad Wilkins, MD, et al., American Family Physician (2012).

About the Pure-Vu System

The Pure-Vu System integrates with standard and slim colonoscopes to improve visualization during a colonoscopy while preserving established procedural workflow by irrigating the colon and evacuating debris to provide a better-quality exam. Challenges with bowel preparation for inpatient colonoscopy, particularly patients who are elderly, with comorbidities, or active bleeds, represent a significant area of unmet need that directly affects clinical outcomes and increases the cost of care. Motus GI believes the Pure-Vu System may lead to positive outcomes and lower costs for hospitals by safely and quickly improving visualization of the colon for a quality exam the first time. In multiple clinical studies to date, involving the treatment of challenging inpatient and outpatient cases, the Pure-Vu System has consistently helped achieve adequate bowel cleanliness rates greater than 95% following a reduced prep regimen. Motus GI estimates that in 2021 approximately 4.8 million inpatient colonoscopy procedures will take place worldwide.

The Pure-Vu System has received a CE Mark in the EU and is cleared by the U.S. Food and Drug Administration to help facilitate the cleaning of a poorly prepared colon during the colonoscopy procedure.

About Motus GI

Motus GI Holdings, Inc. is a medical technology company, with subsidiaries in the U.S. and Israel, providing endoscopy solutions that improve clinical outcomes and enhance the cost-efficiency associated with the diagnosis and management of gastrointestinal conditions. For more information, visit www.motusgi.com and connect with the Company on Twitter, LinkedIn and Facebook.

Forward-Looking Statements

This press release contains certain forward-looking statements. Forward-looking statements are based on the Company’s current expectations and assumptions. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. These statements may be identified by the use of forward-looking expressions, including, but not limited to, “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “potential,” “predict,” “project,” “should,” “would” and similar expressions and the negatives of those terms, including without limitation, risks related to the Company’s cost reduction plan, the cost savings and the cash expenses related to the implementation of the plan, risks related to the continued impact of the COVID-19 pandemic, risks inherent in the development and commercialization of potential products, uncertainty in the timing and results of clinical trials or regulatory approvals, maintenance of intellectual property rights or other risks discussed in the Company’s Form 10-K filed on March 16, 2021, and its other filings with the Securities and Exchange Commission. Prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

Investor Contact:


Bob Yedid
LifeSci Advisors
(646) 597-6989
[email protected]

NEW YORK, April 30, 2021 (GLOBE NEWSWIRE) — Acreage Holdings, Inc. (“Acreage”) (CSE:ACRG.A.U, ACRG.B.U), (OTCQX: ACRHF, ACRDF) a vertically integrated, multi-state operator of cannabis licenses and assets in the U.S., today announced it will report its first quarter 2021 financial results for the period ending March 31, 2021 on May 10, 2021 after market close. Management will host a conference call on May 11, 2021 at 8:30 a.m. EST to discuss the results in detail.

A webcast will be available and can be accessed via Acreage’s Investor Relations website investors.acreageholdings.com. To listen to the live call, please visit the website at least 15 minutes early to register, download and install any necessary audio software. A playback of the call will be archived on Acreage’s website for approximately 30 days.

ABOUT ACREAGE

With its principal address in New York City, Acreage is a multi-state operator of cannabis ‎cultivation and retailing facilities in the U.S., including the company’s national retail store ‎brand, The Botanist. Acreage’s wide range of national and regionally available cannabis products include the award-winning The Botanist brand, the highly recognizable Tweed brand, the Prime medical brand in Pennsylvania, the Innocent edibles brand in Illinois and others. Acreage also owns Universal Hemp, LLC, a hemp subsidiary dedicated to the distribution, marketing and sale of CBD products throughout the U.S. Since its founding in 2011, Acreage has focused on building and scaling operations to create a ‎seamless, consumer-focused, branded experience. More information is available at www.acreageholdings.com.

On June 27, 2019, Acreage implemented an arrangement under section 288 of the Business Corporations ‎Act (British Columbia) with Canopy Growth Corporation (“Canopy Growth”), which was subsequently amended on September 23, 2020 (the “Amended Arrangement”)‎. Pursuant to the Amended Arrangement, ‎upon ‎the occurrence (or waiver by Canopy Growth) of changes in federal laws in the United States to permit the general cultivation, distribution and possession of marijuana (as defined in the relevant legislation) or to remove the regulation of such activities from the federal laws of the United States (the “Triggering Event”), Canopy Growth will, subject to the ‎satisfaction or waiver of certain closing conditions, acquire ‎all of the issued and outstanding Class E subordinate voting shares (the “Fixed Shares”) on the basis of 0.3048 of a Canopy Growth share per ‎Fixed Share (following the automatic conversion of the Class F multiple voting shares and subject to adjustment ‎in accordance with the terms of the arrangement agreement entered into between Acreage and Canopy Growth on April 18, 2019, as amended on May 15, 2019 and on September 23, 2020).

In addition, Canopy Growth holds an option, exercisable at the discretion of Canopy Growth, to acquire all of the ‎issued and outstanding Class D subordinate voting shares (the “Floating Shares”) at the time that Canopy Growth acquires the Fixed Shares, for ‎cash or Canopy Growth shares, as Canopy Growth may determine, at a price per Floating Share based ‎upon the 30-day volume-weighted average trading price of the Floating Shares on the CSE relative to the trading price of the Canopy Growth shares at the time of the ‎occurrence or waiver of the Triggering Event, subject to a minimum price of US$6.41 per Floating Share.

For more information about the Amended Arrangement please see the Acreage proxy statement and management information circular dated August 17, 2020 (the “Circular”) and the respective ‎information circulars of each of Acreage and Canopy Growth dated May 17, 2019, which are available on ‎Acreage’s and Canopy Growth’s respective profiles on SEDAR at www.sedar.com and filed with the SEC on the EDGAR website at www.sec.gov. For additional information regarding ‎Canopy Growth, please see Canopy Growth’s profile on SEDAR at www.sedar.com.

FORWARD LOOKING STATEMENTS

This news release and each of the documents referred to herein contains “forward-looking information” and ‎‎“forward-looking statements” within the meaning of applicable Canadian and United States securities legislation, ‎respectively. All statements, other than statements of historical fact, included herein are forward-looking ‎information, including, for greater certainty, statements regarding the Amended Arrangement, including the likelihood of completion thereof, the ‎occurrence or waiver of the Triggering Event, the satisfaction or waiver of the closing conditions set out in the Arrangement Agreement and other statements with respect to the proposed transactions with Canopy Growth. ‎Often, but not always, forward-looking statements and information can be identified by the use of words such as ‎‎“plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, ‎or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, ‎‎‎“would”, “might” or “will” be taken, occur or be achieved. ‎

Forward-looking statements or information involve known and unknown risks, uncertainties and other ‎factors which may cause the actual results, performance or achievements of Acreage or its ‎subsidiaries to be materially different from any future results, performance or achievements expressed or ‎implied by the forward-looking statements or information contained in this news release. Risks, uncertainties and other factors involved with forward-looking ‎information could cause actual events, results, performance, prospects and opportunities to differ ‎materially from those expressed or implied by such forward-looking information, including, but not ‎limited to financing and liquidity risks, and the risks disclosed in the Circular, Acreage’s ‎management information circular dated May 17, 2019 filed on May 23, 2019, Acreage’s annual report on Form 10-K for the year ended ‎December 31, 2020 ‎dated March 25, 2021 and Acreage’s other public filings, in each case filed with the SEC on the EDGAR website at www.sec.gov and with ‎Canadian securities regulators ‎and available on the issuer profile of Acreage on SEDAR at www.sedar.com. Although Acreage has attempted to identify ‎important factors that could cause actual results to differ materially from those contained in forward-looking ‎information, there may be other factors that cause results not to be as anticipated, estimated or intended. ‎

Although Acreage believes that the ‎assumptions and factors used in preparing the forward-looking information or forward-looking ‎statements in this news release are reasonable, undue reliance should not be placed on such information ‎and no assurance can be given that such events will occur in the disclosed time frames or at all. The ‎forward-looking information and forward-looking statements included in this news release are made as of ‎the date of this news release and Acreage does not undertake any obligation to publicly update such ‎forward-looking information or forward-looking statements to reflect new information, subsequent events ‎or otherwise unless required by applicable securities laws.

Neither the Canadian Securities Exchange nor its Regulation Service Provider has reviewed and does not accept ‎responsibility for the adequacy or accuracy of the content of this news release.‎

For more information contact: Steve West Vice President, Investor Relations [email protected] 646-600-9181