COPY OF Peapack-Gladstone Financial Corporation Reports Strong First Quarter Results, Driven By Noninterest Income Totaling 36% Of Total Revenue
Bedminster, NJ, April 29, 2021 (GLOBE NEWSWIRE) — via NewMediaWire — Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market: PGC) (the “Company”) announces its first quarter 2021 results.
This earnings release should be read in conjunction with the Company’s Q1 2021 Investor Update (and Supplemental Financial Information), a copy of which is available on our website at www.pgbank.com and via a current report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov.
The Company recorded total revenue of $49.61 million, net income of $13.18 million and diluted earnings per share (“EPS”) of $0.67 for the quarter ended March 31, 2021, compared to $46.27 million, $1.37 million and $0.07, respectively, for the same three month period ended March 31, 2020.
The 2021 quarter included increased noninterest income, principally wealth management income and income from capital markets activities (which includes mortgage banking income, loan level back-to-back swap income, SBA loan income, and corporate advisory fee income). The 2021 quarter also included a significantly reduced provision for loan losses when compared to the same quarter last year. The 2021 quarter included a $225,000 provision while the 2020 quarter included a $20.0 million provision, which was due to the environment at that time created by the COVID-19 pandemic, which led to increased qualitative loss factors when calculating the allowance for loan losses.
The 2021 three-month period also included $1.5 million of severance expense related to certain staff reorganizations within several areas of the Bank. The 2020 three-month period included a tax benefit of $3.2 million caused by the changes in the treatment of tax net operating losses (“NOL”) under the provisions of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.
As previously disclosed, on January 28, 2021, the Company authorized the repurchase of up to 948,735 shares, or approximately 5% of its outstanding shares. During the first quarter of 2021 the Company purchased 158,033 shares at an average price of $27.71 for a total cost of $4.4 million under this program.
Douglas L. Kennedy, President and CEO, said, “Our capital is strong and we believe that purchasing the Company’s stock is an opportunity for us to effectively manage our excess capital, while taking advantage of the Company’s discounted valuation relative to peers.”
Mr. Kennedy also said, “During the first quarter of 2021 the Company participated in the 2021 round of the Paycheck Protection Program (“PPP”) which created much needed funding to qualifying small businesses and organizations. We are proud to say that during the quarter we assisted with over $142 million of PPP loans - $47 million processed, closed and funded by the Bank, and another $95 million referred directly to a third party for processing and funding. The Company plans to sell the $46 million of loans in the second quarter to the same third party, who is extremely proficient in the servicing and forgiveness processes for PPP loans.”
EXECUTIVE SUMMARY:
The following tables summarize specified financial measures for the periods shown.
March 2021 Quarter Compared to Prior Year Quarter
Three Months Ended | Three Months Ended | ||||||||||||||||
March 31, | March 31, | Increase/ | |||||||||||||||
(Dollars in millions, except per share data) | 2021 | 2020 | (Decrease) | ||||||||||||||
Net interest income | $ | 31.79 | $ | 31.75 | $ | 0.04 | 0 | % | |||||||||
Wealth management fee income (A) | 12.13 | 9.96 | 2.17 | 22 | |||||||||||||
Capital markets activity (B) | 3.57 | 2.84 | 0.73 | 26 | |||||||||||||
Other income | 2.12 | 1.72 | 0.40 | 23 | |||||||||||||
Total other income | 17.82 | 14.52 | 3.30 | 23 | |||||||||||||
Operating expenses (C) | 31.59 | 28.24 | 3.35 | 12 | |||||||||||||
Pretax income before provision for loan losses | 18.02 | 18.03 | (0.01 | ) | (0 | ) | |||||||||||
Provision for loan and lease losses (D) | 0.23 | 20.00 | (19.77 | ) | (99 | ) | |||||||||||
Pretax income | 17.79 | (1.97 | ) | 19.76 | N/A | ||||||||||||
Income tax expense/(benefit) (E) | 4.61 | (3.34 | ) | 7.95 | N/A | ||||||||||||
Net income (C) | $ | 13.18 | $ | 1.37 | $ | 11.81 | 862 | % | |||||||||
Diluted EPS | $ | 0.6747 | $ | 0.0700 | $ | 0.6047 | 864 | % | |||||||||
Total Revenue (F) | $ | 49.61 | $ | 46.27 | $ | 3.34 | 7 | % | |||||||||
Return on average assets annualized | 0.89 | % | 0.11 | % | 0.78 | ||||||||||||
Return on average equity annualized | 10.03 | % | 1.08 | % | 8.95 |
The March 2021 quarter included a full quarter of wealth management fee income and expense related to the December lift outs of teams from Lucas Capital Management (“Lucas”) and Noyes Capital Management (“Noyes”) - approximately $600,000 of wealth management fee income and approximately $400,000 of operating expenses were recorded in the 2021 quarter.
Capital markets activity includes loan level back-to-back swap activities, the SBA lending and sale program, corporate advisory activities and mortgage banking activities. There were no fees related to loan level back-to-back swap activities in the quarter ended March 31, 2021, compared to $1.4 million in the March 2020 quarter.
The quarter ended March 31, 2021 included $1.5 million of severance expense related to certain staff reorganization within several areas of the Bank. This expense reduced pretax income before provision for loan losses and pretax income by $1.5 million each; and reduced net income by $1.1 million; diluted EPS by $0.06; ROA by 0.08%; and ROE by 0.86%, respectively.
The March 2020 quarter included a provision for loan and lease losses of $20.0 million, primarily due to the environment at that time created by the COVID-19 pandemic.
The March 2020 quarter included a $3.2 million tax benefit related to the carryback of tax NOLs to prior years when the Federal tax rate was 14% higher.
Total revenue equals net interest income plus total other income.
March 2021 Quarter Compared to Linked Quarter
Three Months Ended | Three Months Ended | ||||||||||||||||
March 31, | December 31, | Increase/ | |||||||||||||||
(Dollars in millions, except per share data) | 2021 | 2020 | (Decrease) | ||||||||||||||
Net interest income | $ | 31.79 | $ | 31.74 | $ | 0.05 | 0 | % | |||||||||
Wealth management fee income (A) | 12.13 | 10.79 | 1.34 | 12 | |||||||||||||
Capital markets activity (B) | 3.57 | 1.90 | 1.67 | 88 | |||||||||||||
Other income | 2.12 | 1.71 | 0.41 | 24 | |||||||||||||
Total other income | 17.82 | 14.40 | 3.42 | 24 | |||||||||||||
Operating expenses (C) | 31.59 | 39.25 | (7.66 | ) | (20 | ) | |||||||||||
Pretax income before provision for loan losses | 18.02 | 6.89 | 11.13 | 162 | |||||||||||||
Provision for loan and lease losses | 0.23 | 2.35 | (2.12 | ) | (90 | ) | |||||||||||
Pretax income | 17.79 | 4.54 | 13.25 | 292 | |||||||||||||
Income tax expense | 4.61 | 1.51 | 3.10 | 205 | |||||||||||||
Net income (C) | $ | 13.18 | $ | 3.03 | $ | 10.15 | 335 | % | |||||||||
Diluted EPS | $ | 0.67 | $ | 0.16 | $ | 0.51 | 319 | % | |||||||||
Total Revenue (D) | $ | 49.61 | $ | 46.14 | $ | 3.47 | 8 | % | |||||||||
Return on average assets annualized | 0.89 | % | 0.21 | % | 0.68 | ||||||||||||
Return on average equity annualized | 10.03 | % | 2.32 | % | 7.71 |
The March 2021 quarter included a full quarter of wealth management fee income and expense related to the lift outs of teams from Lucas and Noyes - approximately $600,000 of wealth management fee income and approximately $400,000 of operating expenses were recorded in the 2021 quarter.
Capital markets activity includes loan level back-to-back swap activities, the SBA lending and sale program, corporate advisory and mortgage banking activities.
The quarter ended March 31, 2021 included $1.5 million of severance expense related to certain staff reorganization within several areas of the Bank. This expense reduced pretax income before provision for loan losses and pretax income by $1.5 million each; and reduced net income by $1.1 million; diluted EPS by $0.06; ROA by 0.08%; and ROE by 0.86%, respectively. The December 31, 2020 quarter included $4.8 million for the prepayment of FHLB advances, $4.4 million for the valuation allowance for a loan held for sale and $210,000 for the consolidation of two private banking locations.
Total revenue equals net interest income plus total other income.
The Company’s near-term priorities include:
Actively deploy/manage capital and liquidity by expanding our lending activities and executing on our recently announced stock repurchase program.
Continue to grow and expand our core Wealth Management, Commercial Banking and Capital Markets businesses through core operations, strategic hires, lift-outs, and acquisition of wealth management firms.
Expand our Net Interest Margin.
Investment in digital enhancements.
Continue to target fee income at 35% - 45% of total bank revenue.
Drive ROA to greater than 1% and return on average tangible common equity to greater than 14%.
Other select highlights for the quarter included:
Total noninterest income totaled $17.8 million for the March 2021 quarter, accounting for 36% of total revenue (within our target of 35% to 45% of total revenue).
Wealth management fee income, which comprised approximately 24% of the Company’s total revenue for the three-months ended March 31, 2021, continues to contribute significantly to the Company’s diversified revenue sources.
The Company completed its first major corporate advisory/investment banking deal.
As of March 31, 2021, total C&I loans (including PPP loans held in portfolio and held for sale) comprised 45% of the total loan portfolio.
Deposits totaled $4.94 billion at March 31, 2021. This reflected net growth of $504 million or 11% compared to $4.44 billion at March 31, 2020, despite managed reductions in higher cost CDs of $184 million.
The Company’s net interest margin improved in the quarter when compared to the December 2020 quarter (see subsequent discussion of Net Interest Income / Net Interest Margin).
In addition to $1.4 billion (23% of total assets) of balance sheet liquidity (investments, interest-earning deposits and cash) as of March 31, 2021, the Company also has access to approximately $2.8 billion of available secured funding at the Federal Home Loan Bank and the Federal Reserve.
Nonperforming assets at March 31, 2021 were $11.8 million, or 0.20% of total assets. Loans past due 30 to 89 days totaled $1.6 million at March 31, 2021. Loans on deferral status as of March 31, 2021 were $43 million (less than 1% of total loans).
As previously announced, the Company opened a retail location in Boonton/Mountain Lakes, New Jersey.
PEAPACK-GLADSTONE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in Thousands)
(Unaudited)
As of | ||||||||||||||||||||
March 31, | Dec 31, | Sept 30, | June 30, | March 31, | ||||||||||||||||
2021 | 2020 | 2020 | 2020 | 2020 | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 8,159 | $ | 10,629 | $ | 8,400 | $ | 5,608 | $ | 6,171 | ||||||||||
Federal funds sold | 102 | 102 | 102 | 102 | 102 | |||||||||||||||
Interest-earning deposits | 468,276 | 642,591 | 670,863 | 617,117 | 767,730 | |||||||||||||||
Total cash and cash equivalents | 476,537 | 653,322 | 679,365 | 622,827 | 774,003 | |||||||||||||||
Securities available for sale | 875,301 | 622,689 | 596,929 | 539,742 | 400,558 | |||||||||||||||
Equity security | 14,852 | 15,117 | 15,159 | 15,159 | 14,034 | |||||||||||||||
FHLB and FRB stock, at cost | 13,699 | 13,709 | 18,433 | 18,598 | 40,871 | |||||||||||||||
Residential mortgage | 498,884 | 520,188 | 532,120 | 536,015 | 532,063 | |||||||||||||||
Multifamily mortgage | 1,178,940 | 1,127,198 | 1,168,796 | 1,178,494 | 1,203,487 | |||||||||||||||
Commercial mortgage | 697,599 | 694,034 | 722,678 | 761,910 | 760,648 | |||||||||||||||
Commercial loans (A) | 1,982,570 | 1,975,337 | 1,930,984 | 2,316,125 | 1,810,214 | |||||||||||||||
Consumer loans | 36,519 | 37,016 | 51,859 | 53,111 | 53,365 | |||||||||||||||
Home equity lines of credit | 45,624 | 50,547 | 52,194 | 54,006 | 55,856 | |||||||||||||||
Other loans | 199 | 225 | 260 | 272 | 347 | |||||||||||||||
Total loans | 4,440,335 | 4,404,545 | 4,458,891 | 4,899,933 | 4,415,980 | |||||||||||||||
Less: Allowances for loan and lease losses | 67,536 | 67,309 | 66,145 | 66,065 | 63,783 | |||||||||||||||
Net loans | 4,372,799 | 4,337,236 | 4,392,746 | 4,833,868 | 4,352,197 | |||||||||||||||
Premises and equipment | 23,260 | 21,609 | 21,668 | 21,449 | 21,243 | |||||||||||||||
Other real estate owned | 50 | 50 | 50 | 50 | 50 | |||||||||||||||
Accrued interest receivable | 23,916 | 22,495 | 22,192 | 15,956 | 11,816 | |||||||||||||||
Bank owned life insurance | 46,448 | 46,809 | 46,645 | 46,479 | 46,309 | |||||||||||||||
Goodwill and other intangible assets | 43,524 | 43,891 | 39,622 | 39,943 | 40,265 | |||||||||||||||
Finance lease right-of-use assets | 4,143 | 4,330 | 4,517 | 4,704 | 4,891 | |||||||||||||||
Operating lease right-of-use assets | 10,186 | 9,421 | 10,011 | 10,810 | 11,553 | |||||||||||||||
Other assets (B) | 64,912 | 99,764 | 110,770 | 111,630 | 113,668 | |||||||||||||||
TOTAL ASSETS | $ | 5,969,627 | $ | 5,890,442 | $ | 5,958,107 | $ | 6,281,215 | $ | 5,831,458 | ||||||||||
LIABILITIES | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 908,922 | $ | 833,500 | $ | 838,307 | $ | 911,989 | $ | 581,085 | ||||||||||
Interest-bearing demand deposits | 1,987,567 | 1,849,254 | 1,858,529 | 1,804,102 | 1,680,452 | |||||||||||||||
Savings | 141,743 | 130,731 | 127,737 | 123,140 | 112,668 | |||||||||||||||
Money market accounts | 1,256,605 | 1,298,885 | 1,251,349 | 1,183,603 | 1,163,410 | |||||||||||||||
Certificates of deposit – Retail | 474,668 | 530,222 | 586,801 | 629,941 | 651,000 | |||||||||||||||
Certificates of deposit – Listing Service | 31,631 | 32,128 | 32,677 | 35,327 | 38,895 | |||||||||||||||
Subtotal “customer” deposits | 4,801,136 | 4,674,720 | 4,695,400 | 4,688,102 | 4,227,510 | |||||||||||||||
IB Demand – Brokered | 110,000 | 110,000 | 130,000 | 130,000 | 180,000 | |||||||||||||||
Certificates of deposit – Brokered | 33,777 | 33,764 | 33,750 | 33,736 | 33,723 | |||||||||||||||
Total deposits | 4,944,913 | 4,818,484 | 4,859,150 | 4,851,838 | 4,441,233 | |||||||||||||||
Short-term borrowings | 15,000 | 15,000 | 15,000 | 15,000 | 515,000 | |||||||||||||||
FHLB advances (C) | — | — | 105,000 | 105,000 | 105,000 | |||||||||||||||
Paycheck Protection Program Liquidity Facility (D) | 168,180 | 177,086 | 183,790 | 535,837 | — | |||||||||||||||
Finance lease liability | 6,528 | 6,753 | 6,976 | 7,196 | 7,402 | |||||||||||||||
Operating lease liability | 10,509 | 9,737 | 10,318 | 11,116 | 11,852 | |||||||||||||||
Subordinated debt, net (E) | 181,837 | 181,794 | 83,585 | 83,529 | 83,473 | |||||||||||||||
Other liabilities (B) | 120,219 | 154,466 | 156,472 | 163,719 | 160,173 | |||||||||||||||
Due to brokers | — | — | 15,088 | — | 10,885 | |||||||||||||||
TOTAL LIABILITIES | 5,447,186 | 5,363,320 | 5,435,379 | 5,773,235 | 5,335,018 | |||||||||||||||
Shareholders’ equity | 522,441 | 527,122 | 522,728 | 507,980 | 496,440 | |||||||||||||||
TOTAL LIABILITIES AND | ||||||||||||||||||||
SHAREHOLDERS’ EQUITY | $ | 5,969,627 | $ | 5,890,442 | $ | 5,958,107 | $ | 6,281,215 | $ | 5,831,458 | ||||||||||
Assets under management and / or administration at | $ | 9.4 | $ | 8.8 | $ | 7.6 | $ | 7.2 | $ | 6.4 |
|
Includes PPP loans of $233 million at March 31, 2021, $196 million at December 31, 2020, $202 million at September 30, 2020 and $547 million at June 30, 2020.
The change in other assets and other liabilities was primarily due to the change in the fair value of our back-to-back swap program.
The Company prepaid $105 million of FHLB advances with a weighted-average rate of 3.20% during the December 2020 quarter.
Represents funding provided by the Federal Reserve for pledged PPP loans.
The increase was due to the completion of a $100 million subordinated debt offering in December 22, 2020.
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED BALANCE SHEET DATA
(Dollars in Thousands)
(Unaudited)
As of | ||||||||||||||||||||
March 31, | Dec 31, | Sept 30, | June 30, | March 31, | ||||||||||||||||
2021 | 2020 | 2020 | 2020 | 2020 | ||||||||||||||||
Asset Quality: | ||||||||||||||||||||
Loans past due over 90 days and still accruing | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Nonaccrual loans (A) | 11,767 | 11,410 | 8,611 | 26,697 | 29,324 | |||||||||||||||
Other real estate owned | 50 | 50 | 50 | 50 | 50 | |||||||||||||||
Total nonperforming assets | $ | 11,817 | $ | 11,460 | $ | 8,661 | $ | 26,747 | $ | 29,374 | ||||||||||
Nonperforming loans to total loans | 0.27 | % | 0.26 | % | 0.19 | % | 0.54 | % | 0.66 | % | ||||||||||
Nonperforming assets to total assets | 0.20 | % | 0.19 | % | 0.15 | % | 0.43 | % | 0.50 | % | ||||||||||
Performing TDRs (B)(C) | $ | 197 | $ | 201 | $ | 2,278 | $ | 2,376 | $ | 2,389 | ||||||||||
Loans past due 30 through 89 days and still accruing (D)(E) | $ | 1,622 | $ | 5,053 | $ | 6,609 | $ | 3,785 | $ | 8,261 | ||||||||||
Loans subject to special mention | $ | 166,013 | $ | 162,103 | $ | 129,700 | $ | 27,922 | $ | 13,222 | ||||||||||
Classified loans | $ | 25,714 | $ | 37,771 | $ | 41,263 | $ | 63,562 | $ | 58,938 | ||||||||||
Impaired loans | $ | 11,964 | $ | 16,204 | $ | 15,514 | $ | 33,708 | $ | 36,369 | ||||||||||
Allowance for loan and lease losses: | ||||||||||||||||||||
Beginning of period | $ | 67,309 | $ | 66,145 | $ | 66,065 | $ | 63,783 | $ | 43,676 | ||||||||||
Provision for loan and lease losses | 225 | 2,350 | 5,150 | 4,900 | 20,000 | |||||||||||||||
(Charge-offs)/recoveries, net | 2 | (1,186 | ) | (5,070 | ) | (2,618 | ) | 107 | ||||||||||||
End of period | $ | 67,536 | $ | 67,309 | $ | 66,145 | $ | 66,065 | $ | 63,783 | ||||||||||
ALLL to nonperforming loans | 573.94 | % | 589.91 | % | 768.15 | % | 247.46 | % | 217.51 | % | ||||||||||
ALLL to total loans | 1.52 | % | 1.53 | % | 1.48 | % | 1.35 | % | 1.44 | % | ||||||||||
General ALLL to total loans (F) | 1.45 | % | 1.47 | % | 1.48 | % | 1.26 | % | 1.30 | % |
Excludes one commercial loan held for sale of $5.6 million at March 31, 2021. Excludes residential and commercial loans held for sale of $8.5 million at December 31, 2020. Excludes one commercial loan held for sale of $10.0 million at September 30, 2020.
Amounts reflect TDRs that are paying according to restructured terms.
Amount does not include $3.9 million at March 31, 2021, $4.0 million at December 31, 2020, $5.2 million at September 30, 2020, $23.2 million at June 30, 2020 and $25.9 million at March 31, 2020 of TDRs included in nonaccrual loans.
Excludes a residential loan held for sale of $93,000 at December 31, 2020.
December 31, 2020 includes $1.3 million of residential loans that are classified as delinquent due to an escrow payment shortage due to a recent change in escrow payment requirement.
Total ALLL less specific reserves equals general ALLL.
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED BALANCE SHEET DATA
(Dollars in Thousands)
(Unaudited)
March 31, | December 31, | March 31, | ||||||||||||||||
2021 | 2020 | 2020 | ||||||||||||||||
Capital Adequacy | ||||||||||||||||||
Equity to total assets (A)(J) | 8.75 | % | 8.95 | % | 8.51 | % | ||||||||||||
Tangible Equity to tangible assets (B) | 8.08 | % | 8.27 | % | 7.88 | % | ||||||||||||
Tangible Equity to tangible assets excluding | 8.41 | % | 8.55 | % | 7.88 | % | ||||||||||||
Book value per share (D) | $ | 27.45 | $ | 27.78 | $ | 26.33 | ||||||||||||
Tangible Book Value per share (E) | $ | 25.16 | $ | 25.47 | $ | 24.20 |
March 31, | December 31, | March 31, | |||||||||||||||||||||
2021 | 2020 | 2020 | |||||||||||||||||||||
Regulatory Capital – Holding Company | |||||||||||||||||||||||
Tier I leverage | $ | 491,384 | 8.66% | $ | 483,535 | 8.53% | $ | 458,640 | 8.93% | ||||||||||||||
Tier I capital to risk-weighted assets | 491,384 | 12.00 | 483,535 | 11.93 | 458,640 | 10.71 | |||||||||||||||||
Common equity tier I capital ratio | 491,355 | 12.00 | 483,500 | 11.93 | 458,639 | 10.71 | |||||||||||||||||
Tier I & II capital to risk-weighted assets | 724,599 | 17.70 | 716,210 | 17.67 | 595,770 | 13.91 | |||||||||||||||||
Regulatory Capital – Bank | |||||||||||||||||||||||
Tier I leverage (F) | $ | 564,533 | 9.95% | $ | 549,575 | 9.71% | $ | 527,433 | 10.28% | ||||||||||||||
Tier I capital to risk-weighted assets (G) | 564,533 | 13.79 | 549,575 | 13.55 | 527,433 | 12.33 | |||||||||||||||||
Common equity tier I capital ratio | 564,504 | 13.78 | 549,540 | 13.55 | 527,432 | 12.33 | |||||||||||||||||
Tier I & II capital to risk-weighted assets (I) | 615,925 | 15.04 | 600,478 | 14.81 | 581,025 | 13.58 |
Equity to total assets is calculated as total shareholders’ equity as a percentage of total assets at period end.
Tangible equity and tangible assets are calculated by excluding the balance of intangible assets from shareholders’ equity and total assets, respectively. Tangible equity as a percentage of tangible assets at period end is calculated by dividing tangible equity by tangible assets at period end. See Non-GAAP financial measures reconciliation included in these tables.
Tangible equity and tangible assets excluding PPP loans are calculated by excluding the balance of intangible assets from shareholders’ equity and excluding the balance of intangible assets and PPP loans from total assets. Tangible equity as a percentage of tangible assets excluding PPP loans at period end is calculated by dividing tangible equity by tangible assets excluding PPP loans at period end. See Non-GAAP financial measures reconciliation included in these tables.
Book value per common share is calculated by dividing shareholders’ equity by period end common shares outstanding
Tangible book value per excludes intangible assets. Tangible book value per share is calculated by dividing tangible equity by period end common shares outstanding. See Non-GAAP financial measures reconciliation tables.
Regulatory well capitalized standard = 5.00% ($284 million)
Regulatory well capitalized standard = 8.00% ($328 million)
Regulatory well capitalized standard = 6.50% ($266 million)
Regulatory well capitalized standard = 10.00% ($410 million)
PPP loans with a balance of $233 million and $196 million increased total assets at March 31, 2021 and December 31, 2020, respectively.