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johnson-mortgage.com

Stage

Corporate Majority | Acquired

About Johnson Mortgage

Johnson Mortgage is a residential mortgage company headquartered in Newport News, Virginia, with a branch office in Williamsburg, Virginia. The company offers a full line of secondary market loans.

Johnson Mortgage Headquarters Location

739 Thimble Shoals Blvd Suite 507

Newport News, Virginia, 23606,

United States

757-873-1287

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Latest Johnson Mortgage News

Partners Bancorp Reports Results of Operations for the Second Quarter 2022

Aug 1, 2022

Salisbury, Maryland, UNITED STATES SALISBURY, Md., Aug. 01, 2022 (GLOBE NEWSWIRE) -- Partners Bancorp (NASDAQ: PTRS) (the “Company”), the parent company of The Bank of Delmarva (“Delmarva”), Seaford, Delaware, and Virginia Partners Bank (“Virginia Partners”), Fredericksburg, Virginia, reported net income attributable to the Company of $3.2 million, or $0.18 per share, for the three months ended June 30, 2022, a $1.0 million or 47.0% increase when compared to net income attributable to the Company of $2.2 million, or $0.12 per share, for the same period in 2021. For the six months ended June 30, 2022, the Company reported net income attributable to the Company of $5.3 million, or $0.29 per share, a $2.0 million or 62.6% increase when compared to net income attributable to the Company of $3.3 million, or $0.18 per share, for the same period in 2021. As previously disclosed, on November 4, 2021, the Company and OceanFirst Financial Corp. (“OceanFirst”) announced that they have entered into a definitive agreement and plan of merger pursuant to which the Company will merge into OceanFirst, with OceanFirst surviving, and following which Virginia Partners and Delmarva will each successively merge with and into OceanFirst Bank, N.A., with OceanFirst Bank surviving each bank merger. At this time, OceanFirst has requested regulatory approvals; however, OceanFirst has not received a timeline for when the review process will be completed. The mergers remain subject to receipt of all required regulatory approvals and fulfillment of other customary closing conditions. The Company’s results of operations for the three and six months ended June 30, 2022 were directly impacted by the following: Positive Impacts: An increase in net interest income due primarily to lower rates paid on average interest-bearing deposit balances, a decrease in average borrowings balances, an increase in average loan balances, an increase in average cash and cash equivalents balances and yields earned, and an increase in average investment securities balances and yields earned, which were partially offset by lower loan yields earned, and an increase in average interest-bearing deposit balances. Net interest income was negatively impacted during the three and six months ended June 30, 2022 due to lower net loan fees earned related to the forgiveness of loans originated and funded under the Paycheck Protection Program (“PPP”) of the Small Business Administration; A higher net interest margin (tax equivalent basis); A significantly lower provision for credit losses due to the current economic environment and the milder impact of the COVID-19 pandemic compared to June 30, 2021; and Recording gains on other real estate owned as compared to losses for the same periods of 2021. Negative Impacts: Lower gains on sales and calls of investment securities; Reduced operating results from Virginia Partners’ majority owned subsidiary Johnson Mortgage Company, LLC and lower mortgage division fees at Delmarva; Expenses associated with Virginia Partners’ new key hires and expansion into the Greater Washington market, including opening its new full-service branch and commercial banking office in Reston, Virginia during the third quarter of 2021, and Delmarva opening its twelfth full-service branch at 26th Street in Ocean City, Maryland during the second quarter of 2021; and Merger related expenses of $157 thousand and $553 thousand were incurred during the three and six months ended June 30, 2022, respectively, in connection with the Company’s pending merger with OceanFirst. As previously disclosed, on July 27, 2022, the Company’s board of directors declared a cash dividend of $0.025 per share, which is payable on August 19, 2022, to holders of record of its common stock as of the close of business on August 10, 2022. For the three months ended June 30, 2022, the Company’s annualized return on average assets, annualized return on average equity and efficiency ratio were 0.76%, 9.51% and 68.89%, respectively, as compared to 0.55%, 6.44% and 72.30%, respectively, for the same period in 2021. For the six months ended June 30, 2022, the Company’s annualized return on average assets, annualized return on average equity and efficiency ratio were 0.64%, 7.82% and 73.45%, respectively, as compared to 0.42%, 4.87% and 73.30%, respectively, for the same period in 2021. The increase in net income attributable to the Company for the three months ended June 30, 2022, as compared to the same period in 2021, was driven by an increase in net interest income, a lower provision for credit losses and lower other expenses, and was partially offset by a decrease in other income and higher federal and state income taxes. The increase in net income attributable to the Company for the six months ended June 30, 2022, as compared to the same period in 2021, was driven by an increase in net interest income and a lower provision for credit losses, and was partially offset by a decrease in other income, higher other expenses, and higher federal and state income taxes. Interest Income and Expense – Three Months Ended June 30, 2022 and 2021 Net interest income and net interest margin Net interest income in the second quarter of 2022 increased by $1.2 million, or 10.0%, when compared to the second quarter of 2021. The Company’s net interest margin (tax equivalent basis) increased to 3.16%, representing an increase of 8 basis points for the three months ended June 30, 2022 as compared to the same period in 2021. The increase in the net interest margin (tax equivalent basis) was primarily due to higher average balances of loans, higher average balances of and yields earned on average investment securities, higher average balances of and yields earned on interest bearing deposits in other financial institutions, higher yields earned on average federal funds sold, and lower rates paid on average interest-bearing liabilities, which were partially offset by a decrease in the yields earned on average loans, due primarily to lower net loan fees earned related to the forgiveness of loans originated and funded under the PPP, lower average balances of federal funds sold, and higher average balances of interest-bearing liabilities. Total interest income increased by $519 thousand, or 3.7%, for the three months ended June 30, 2022, while total interest expense decreased by $656 thousand, or 28.7%, both as compared to the same period in 2021. The most significant factors impacting net interest income during the three month period ended June 30, 2022 were as follows: Positive Impacts: Increases in average loan balances, primarily due to organic loan growth, which was partially offset by the forgiveness of loans originated and funded under the PPP; Increases in average investment securities balances and higher investment securities yields, primarily due to management of the investment securities portfolio in light of the Company’s liquidity needs, lower accelerated pre-payments on mortgage-backed investment securities and higher interest rates over the comparable periods, partially offset by calls on higher yielding investment securities in the low interest rate environment; Increase in average interest bearing deposits in other financial institutions, partially offset by a decrease in average federal funds sold, primarily due to deposit growth outpacing loan growth, and higher yields on each due to higher interest rates over the comparable periods; Decrease in the rate paid on average interest-bearing deposit balances, primarily due to lower rates paid on average interest bearing demand, money market and time deposits, partially offset by increases in average interest-bearing deposit balances, primarily due to organic deposit growth; and Decrease in average borrowings balances, primarily due to a decrease in the average balance of Federal Home Loan Bank advances resulting from scheduled principal curtailments, and the early redemption of $2.0 million in subordinated notes payable, net, in early July 2021. Negative Impacts: Lower loan yields, primarily due to lower net loan fees earned related to the forgiveness of loans originated and funded under the PPP. Loans Average loan balances increased by $69.0 million, or 6.3%, and average yields earned decreased by 0.33% to 4.59% for the three months ended June 30, 2022, as compared to the same period in 2021. The increase in average loan balances was primarily due to organic loan growth, including average growth of approximately $56.9 million in loans related to Virginia Partners’ recent expansion into the Greater Washington market, which was partially offset by the forgiveness of loans originated and funded under the PPP. Organic loan growth continued to be negatively impacted by higher pay-offs and tempered loan demand due to the uncertainty surrounding the COVID-19 pandemic. The decrease in average yields earned was primarily due to lower net loan fees earned related to the forgiveness of loans originated and funded under the PPP, pay-offs of higher yielding fixed rate loans, repricing of variable rate loans, and lower average yields on new loan originations. Total average loans were 70.3% of total average interest-earning assets for the three months ended June 30, 2022, compared to 70.9% for the three months ended June 30, 2021. Investment securities Average total investment securities balances increased by $15.0 million, or 11.4%, and average yields earned increased by 0.16% to 2.20% for the three months ended June 30, 2022, as compared to the same period in 2021. The increases in average total investment securities balances and average yields earned was primarily due to management of the investment securities portfolio in light of the Company’s liquidity needs, lower accelerated pre-payments on mortgage-backed investment securities and higher interest rates over the comparable periods, partially offset by calls on higher yielding investment securities in the low interest rate environment. During the second quarter of 2021, accelerated pre-payments on mortgage-backed investment securities caused the premiums paid on these investment securities to be amortized into expense on an accelerated basis thereby reducing income and yield earned. Total average investment securities were 8.9% of total average interest-earning assets for the three months ended June 30, 2022, compared to 8.6% for the three months ended June 30, 2021. Interest-bearing deposits Average total interest-bearing deposit balances increased by $19.8 million, or 2.2%, and average rates paid decreased by 0.28% to 0.49% for the three months ended June 30, 2022, as compared to the same period in 2021, primarily due to organic deposit growth, including average growth of approximately $21.2 million in interest-bearing deposits related to Virginia Partners’ recent expansion into the Greater Washington market, and a decrease in the average rate paid on interest bearing demand, money market and time deposits. Borrowings Average total borrowings decreased by $4.6 million, or 8.6%, and average rates paid were unchanged at 4.02% for the three months ended June 30, 2022, as compared to the same period in 2021. The decrease in average total borrowings balances was primarily due to a decrease in the average balance of Federal Home Loan Bank advances resulting from scheduled principal curtailments, and the early redemption of $2.0 million in subordinated notes payable, net, in early July 2021. Interest Income and Expense – Six Months Ended June 30, 2022 and 2021 Net interest income and net interest margin Net interest income during the first six months of 2022 increased by $2.1 million, or 9.5%, when compared to the first six months of 2021. The Company’s net interest margin (tax equivalent basis) increased to 3.08%, representing an increase of 2 basis points for the six months ended June 30, 2022 as compared to the same period in 2021. The increase in the net interest margin (tax equivalent basis) was primarily due to higher average balances of loans, higher average balances of and yields earned on average investment securities, higher average balances of and yields earned on average interest bearing deposits in other financial institutions, higher yields earned on average federal funds sold, and lower rates paid on average interest-bearing liabilities, which were partially offset by a decrease in the yields earned on average loans, due primarily to lower net loan fees earned related to the forgiveness of loans originated and funded under the PPP, lower average balances of federal funds sold, and higher average balances of interest-bearing liabilities. Total interest income increased by $774 thousand, or 2.8%, for the six months ended June 30, 2022, while total interest expense decreased by $1.4 million, or 28.9%, both as compared to the same period in 2021. The most significant factors impacting net interest income during the six months ended June 30, 2022 were as follows: Positive Impacts: Increases in average loan balances, primarily due to organic loan growth, which was partially offset by the forgiveness of loans originated and funded under the PPP; Increases in average investment securities balances and higher investment securities yields, primarily due to management of the investment securities portfolio in light of the Company’s liquidity needs, lower accelerated pre-payments on mortgage-backed investment securities and higher interest rates over the comparable periods, partially offset by calls on higher yielding investment securities in the low interest rate environment; Increase in average interest bearing deposits in other financial institutions, partially offset by a decrease in average federal funds sold, primarily due to deposit growth outpacing loan growth, and higher yields on each due to higher interest rates over the comparable periods; Decrease in the rate paid on average interest-bearing deposit balances, primarily due to lower rates paid on average interest bearing demand, money market and time deposits, partially offset by increases in average interest-bearing deposit balances, primarily due to organic deposit growth; and Decrease in average borrowings balances, primarily due to a decrease in the average balance of Federal Home Loan Bank advances resulting from maturities and payoffs of borrowings that were not replaced and scheduled principal curtailments, a decrease in average borrowings at the Federal Reserve Bank Discount Window under the PPP Liquidity Facility in which the loans under the PPP originated by the Company were previously pledged as collateral, the early redemption of $2.0 million in subordinated notes payable, net, in early July 2021, and offset by higher rates paid. The increase in average rates paid was primarily due to the decreases in the average balances of Federal Home Loan Bank advances and borrowings at the Federal Reserve Bank Discount Window under the PPP Liquidity Facility, both of which were lower cost interest-bearing liabilities, partially offset by the early redemption of subordinated notes payable, which was a higher cost interest-bearing liability. Negative Impacts: Lower loan yields, primarily due to lower net loan fees earned related to the forgiveness of loans originated and funded under the PPP. Loans Average loan balances increased by $70.8 million, or 6.6%, and average yields earned decreased by 0.33% to 4.60% for the six months ended June 30, 2022, as compared to the same period in 2021. The increase in average loan balances was primarily due to organic loan growth, including average growth of approximately $54.2 million in loans related to Virginia Partners’ recent expansion into the Greater Washington market, which was partially offset by the forgiveness of loans originated and funded under the PPP. Organic loan growth continued to be negatively impacted by higher pay-offs and tempered loan demand due to the uncertainty surrounding the COVID-19 pandemic. The decrease in average yields earned was primarily due to lower net loan fees earned related to the forgiveness of loans originated and funded under the PPP, pay-offs of higher yielding fixed rate loans, repricing of variable rate loans, and lower average yields on new loan originations. Total average loans were 70.3% of total average interest-earning assets for the six months ended June 30, 2022, compared to 71.5% for the six months ended June 30, 2021. Investment securities Average total investment securities balances increased by $10.1 million, or 7.8%, and average yields earned increased by 0.35% to 2.14% for the six months ended June 30, 2022, as compared to the same period in 2021. The increases in average total investment securities balances and average yields earned was primarily due to management of the investment securities portfolio in light of the Company’s liquidity needs, lower accelerated pre-payments on mortgage-backed investment securities and higher interest rates over the comparable periods, partially offset by calls on higher yielding investment securities in the low interest rate environment. During the first six months of 2021, accelerated pre-payments on mortgage-backed investment securities caused the premiums paid on these investment securities to be amortized into expense on an accelerated basis thereby reducing income and yield earned. Total average investment securities were 8.6% of total average interest-earning assets for the six months ended June 30, 2022, compared to 8.7% for the six months ended June 30, 2021. Interest-bearing deposits Average total interest-bearing deposit balances increased by $42.1 million, or 4.7%, and average rates paid decreased by 0.31% to 0.51% for the six months ended June 30, 2022, as compared to the same period in 2021, primarily due to organic deposit growth, including average growth of approximately $24.6 million in interest-bearing deposits related to Virginia Partners’ recent expansion into the Greater Washington market, and a decrease in the average rate paid on interest bearing demand, money market and time deposits. Borrowings Average total borrowings decreased by $18.6 million, or 27.4%, and average rates paid increased by 0.67% to 4.03% for the six months ended June 30, 2022, as compared to the same period in 2021. The decrease in average total borrowings balances was primarily due to a decrease in the average balance of Federal Home Loan Bank advances resulting from maturities and payoffs of borrowings that were not replaced and scheduled principal curtailments, a decrease in average borrowings at the Federal Reserve Bank Discount Window under the PPP Liquidity Facility in which the loans under the PPP originated by the Company were previously pledged as collateral, and the early redemption of $2.0 million in subordinated notes payable, net, in early July 2021. The increase in average rates paid was primarily due to the decreases in the average balances of Federal Home Loan Bank advances and borrowings at the Federal Reserve Bank Discount Window under the PPP Liquidity Facility, which were lower cost interest-bearing liabilities, partially offset by the early redemption of subordinated notes payable, which was a higher cost interest-bearing liability. Provision for Credit Losses The provision for credit losses in the second quarter of 2022 was $319 thousand, a decrease of $539 thousand, or 62.8%, when compared to the provision for credit losses of $858 thousand in the second quarter of 2021. The decrease in the provision for credit losses during the three months ended June 30, 2022, as compared to the same period of 2021, was primarily due to a reduction of qualitative adjustment factors that had previously been increased in the allowance for credit losses related to the COVID-19 pandemic and the uncertainty in the economic environment, which was partially offset by higher net charge-offs, loans acquired in the Virginia Partners acquisition that have converted from acquired to originated status, and organic loan growth. The provision for credit losses during the first six months of 2022 was $384 thousand, a decrease of $2.2 million, or 85.2%, when compared to the provision for credit losses of $2.6 million during the first six months of 2021. The decrease in the provision for credit losses during the six months ended June 30, 2022, as compared to the same period of 2021, was primarily due to a reduction of qualitative adjustment factors that had previously been increased in the allowance for credit losses related to the COVID-19 pandemic and the uncertainty in the economic environment, and the reversal of a specific reserve on one loan relationship due to a large principal curtailment and improved performance, which were partially offset by higher net charge-offs, loans acquired in the Virginia Partners acquisition that have converted from acquired to originated status, and organic loan growth. The provision for credit losses during the three and six months ended June 30, 2022, as well as the allowance for credit losses as of June 30, 2022, represents management’s best estimate of the impact of the COVID-19 pandemic on the ability of the Company’s borrowers to repay their loans. Management continues to carefully assess the exposure of the Company’s loan portfolio to COVID-19 pandemic related factors, economic trends and their potential effect on asset quality. As of June 30, 2022, the Company’s delinquencies and nonperforming assets had not been materially impacted by the COVID-19 pandemic. In addition, as of June 30, 2022, all of the loan balances that were approved by the Company, on a consolidated basis, for loan payment deferrals or payments of interest only have either resumed regular payments or have been paid off. Other Income Other income in the second quarter of 2022 decreased by $763 thousand, or 34.4%, when compared to the second quarter of 2021. Key changes in the components of other income for the three months ended June 30, 2022, as compared to the same period in 2021, are as follows: Service charges on deposit accounts increased by $67 thousand, or 37.1%, due primarily to increases in overdraft fees as a result of the easing of restrictions and the lifting of lockdowns in the Company’s markets of operation and Virginia Partners no longer automatically waiving overdraft fees which was previously done in an effort to provide all necessary financial support and services to its customers and communities, both as related to the ongoing COVID-19 pandemic as compared to the same period of 2021; Gains on sales and calls of investment securities decreased by $6 thousand, or 100.0%, due primarily to Virginia Partners recording gains of $6 thousand on sales or calls of investment securities during the second quarter of 2021, as compared to recording no gains on sales or calls of investment securities during the same period of 2022; Impairment (loss) on restricted stock increased from zero to $1 thousand, due primarily to Virginia Partners recording the final write-down of its investment in Maryland Financial Bank, which had been going through an orderly liquidation; Mortgage banking income decreased by $513 thousand, or 54.6%, due primarily to Virginia Partners’ majority owned subsidiary Johnson Mortgage Company, LLC having a lower volume of loan closings as compared to the same period in 2021; Gains on sales of other assets decreased by less than $1 thousand, or 100.0%, as a result of Delmarva recording an additional gain related to the sale of its VISA credit card portfolio during the first quarter of 2021. There were no gains on sales of other assets for the same period of 2022; and Other income decreased by $309 thousand, or 28.4%, due primarily to lower mortgage division fees at Delmarva, Virginia Partners recording lower fees from its participation in a loan hedging program with a correspondent bank, and decreases in ATM fees, which were partially offset by increases in debit card income and Delmarva recording higher earnings on bank owned life insurance policies due to additional purchases made in 2021. Other income for the six months ended June 30, 2022 decreased by $1.7 million, or 38.6%, when compared to the six months ended June 30, 2021. Key changes in the components of other income for the six months ended June 30, 2022, as compared to the same period in 2021, are as follows: Service charges on deposit accounts increased by $121 thousand, or 34.6%, due primarily to increases in overdraft fees as a result of the easing of restrictions and the lifting of lockdowns in the Company’s markets of operation and Virginia Partners no longer automatically waiving overdraft fees which was previously done in an effort to provide all necessary financial support and services to its customers and communities, both as related to the ongoing COVID-19 pandemic as compared to the same period of 2021; Gains on sales and calls of investment securities decreased by $20 thousand, or 100.0%, due primarily to Virginia Partners recording gains of $20 thousand on sales or calls of investment securities during the first six months of 2021, as compared to recording no gains on sales or calls of investment securities during the same period of 2022; Impairment (loss) on restricted stock increased from zero to $1 thousand, due primarily to Virginia Partners recording the final write-down of its investment in Maryland Financial Bank, which had been going through an orderly liquidation; Mortgage banking income decreased by $1.4 million, or 66.0%, due primarily to Virginia Partners’ majority owned subsidiary Johnson Mortgage Company, LLC having a lower volume of loan closings as compared to the same period in 2021; Gains on sales of other assets decreased by $1 thousand, or 100.0%, as a result of Delmarva selling its VISA credit card portfolio during the first quarter of 2021. There were no gains on sales of other assets for the same period of 2022; and Other income decreased by $433 thousand, or 21.8%, due primarily to lower mortgage division fees at Delmarva, Virginia Partners recording lower fees from its participation in a loan hedging program with a correspondent bank, and decreases in ATM fees, which were partially offset by increases in debit card income and Delmarva recording higher earnings on bank owned life insurance policies due to additional purchases made in 2021. Other Expenses Other expenses in the second quarter of 2022 decreased by $196 thousand, or 1.9%, when compared to the second quarter of 2021. Key changes in the components of other expenses for the three months ended June 30, 2022, as compared to the same period in 2021, are as follows: Salaries and employee benefits increased by $29 thousand, or 0.5%, primarily due to increases related to staffing changes, including expenses associated with Virginia Partners’ new key hires and expansion into the Greater Washington market and Delmarva opening its new full-service branch at 26th Street in Ocean City, Maryland, merit increases, payroll taxes and benefit costs, and bonus accruals. In addition, due to the decrease in mortgage banking income from Virginia Partners’ majority owned subsidiary Johnson Mortgage Company, LLC, salaries and employee benefits decreased due to a decrease in commissions expense paid; Premises and equipment increased by $182 thousand, or 15.0%, primarily due to increases related to Delmarva opening its new full-service branch at 26th Street in Ocean City, Maryland during the second quarter of 2021 and Virginia Partners opening its new full-service branch and commercial banking office in Reston, Virginia during the third quarter of 2021; Amortization of core deposit intangible decreased by $20 thousand, or 13.1%, primarily due to lower amortization related to the $2.7 million and $1.5 million, respectively, in core deposit intangibles recognized in the Virginia Partners and Liberty Bell Bank acquisitions; (Gains) losses and operating expenses on other real estate owned increased by $154 thousand, or 101.4%, primarily due to valuation adjustments being recorded on properties during the second quarter of 2021 as compared to no valuation adjustments being recorded during the same period of 2022, and lower expenses related to other real estate owned; Merger related expenses increased from zero to $157 thousand, primarily due to legal fees and other costs associated with the pending merger with OceanFirst; and Other expenses decreased by $389 thousand, or 12.5%, primarily due to lower expenses related to legal, subscriptions and publications, insurance, data and item processing, loans, debit/credit/merchant card transactions and other professional fees, which were partially offset by higher expenses related to advertising, printing and postage, FDIC insurance assessments, ATM, telephone and data circuits, and travel and entertainment. Other expenses for the six months ended June 30, 2022 increased by $350 thousand, or 1.8%, when compared to the six months ended June 30, 2021. Key changes in the components of other expenses for the six months ended June 30, 2022, as compared to the same period in 2021, are as follows: Salaries and employee benefits increased by $134 thousand, or 1.2%, primarily due to increases related to staffing changes, including expenses associated with Virginia Partners’ new key hires and expansion into the Greater Washington market and Delmarva opening its new full-service branch at 26th Street in Ocean City, Maryland, merit increases, payroll taxes and benefit costs, stock-based compensation expense and bonus accruals. In addition, due to the decrease in mortgage banking income from Virginia Partners’ majority owned subsidiary Johnson Mortgage Company, LLC, salaries and employee benefits decreased due to a decrease in commissions expense paid; Premises and equipment increased by $406 thousand, or 16.4%, primarily due to increases related to Delmarva opening its new full-service branch at 26th Street in Ocean City, Maryland during the second quarter of 2021 and Virginia Partners opening its new full-service branch and commercial banking office in Reston, Virginia during the third quarter of 2021; Amortization of core deposit intangible decreased by $40 thousand, or 13.0%, primarily due to lower amortization related to the $2.7 million and $1.5 million, respectively, in core deposit intangibles recognized in the Virginia Partners and Liberty Bell Bank acquisitions; (Gains) losses and operating expenses on other real estate owned increased by $158 thousand, or 106.4%, primarily due to valuation adjustments being recorded on properties during the first six months of 2021 as compared to no valuation adjustments being recorded during the same period of 2022, and lower expenses related to other real estate owned; Merger related expenses increased from zero to $553 thousand, primarily due to legal fees and other costs associated with the pending merger with OceanFirst; and Other expenses decreased by $545 thousand, or 9.0%, primarily due to lower expenses related to legal, subscriptions and publications, insurance, data and item processing, other losses, and other professional fees, which were partially offset by higher expenses related to advertising, printing and postage, FDIC insurance assessments, consulting, ATM, Virginia Partners state franchise tax, and travel and entertainment. Federal and State Income Taxes Federal and state income taxes for the three months ended June 30, 2022 increased by $252 thousand, or 37.4%, when compared to the three months ended June 30, 2021. This increase was due primarily to higher consolidated income before taxes, higher merger related expenses, which are typically non-deductible, and lower earnings on tax-exempt income, primarily tax-exempt investment securities. For the three months ended June 30, 2022, the Company’s effective tax rate was approximately 22.5% as compared to 23.8% for the same period in 2021. Federal and state income taxes for the six months ended June 30, 2022 increased by $615 thousand, or 61.1%, when compared to the six months ended June 30, 2021. This increase was due primarily to higher consolidated income before taxes, higher merger related expenses, which are typically non-deductible, and lower earnings on tax-exempt income, primarily tax-exempt investment securities. For the six months ended June 30, 2022, the Company’s effective tax rate was approximately 23.5% as compared to 23.6% for the same period in 2021. Virginia Partners is not subject to Virginia state income tax, but instead pays Virginia franchise tax. The Virginia franchise tax paid by Virginia Partners is recorded in the “Other expenses” line item on the Consolidated Statements of Income for the three and six months ended June 30, 2022 and 2021. Balance Sheet Changes in key balance sheet components as of June 30, 2022 compared to December 31, 2021 were as follows: Total assets as of June 30, 2022 were $1.69 billion, an increase of $45.3 million, or 2.8%, from December 31, 2021. Key drivers of this change were increases in investment securities available for sale, at fair value, and total loans held for investment, which were partially offset by decreases in cash and cash equivalents; Interest bearing deposits in other financial institutions as of June 30, 2022 were $275.6 million, a decrease of $22.4 million, or 7.5%, from December 31, 2021. Key drivers of this change were an increase in investment securities available for sale, at fair value, which was partially offset by total deposit growth outpacing total loan growth and the Company repositioning its excess liquidity in order to earn higher amounts of interest income; Federal funds sold as of June 30, 2022 were $24.7 million, a decrease of $3.3 million, or 11.8%, from December 31, 2021. Key drivers of this change were the aforementioned items noted in the analysis of interest bearing deposits in other financial institutions; Investment securities available for sale, at fair value as of June 30, 2022 were $135.4 million, an increase of $13.4 million, or 11.0%, from December 31, 2021. Key drivers of this change were management of the investment securities portfolio in light of the Company’s liquidity needs, which were partially offset by two higher yielding investment securities being called, and an increase in unrealized losses on the investment securities available for sale portfolio; Loans, net of unamortized discounts on acquired loans of $1.9 million as of June 30, 2022 were $1.17 billion, an increase of $52.3 million, or 4.7%, from December 31, 2021. The key driver of this change was an increase in organic growth, including growth of approximately $30.5 million in loans related to Virginia Partners’ recent expansion into the Greater Washington market, which was partially offset by forgiveness payments received of approximately $7.9 million under round two of the PPP. As of June 30, 2022, approximately $247 thousand in loans under round two of the PPP were still outstanding; Total deposits as of June 30, 2022 were $1.50 billion, an increase of $52.5 million, or 3.6%, from December 31, 2021. Key drivers of this change were organic growth as a result of our continued focus on total relationship banking and Virginia Partners’ recent expansion into the Greater Washington market, and customers seeking the liquidity and safety of deposit accounts in light of continuing economic uncertainty and volatility in stock and other investment markets; Total borrowings as of June 30, 2022 were $49.2 million, a decrease of $67 thousand, or 0.1%, from December 31, 2021. Key drivers of this change was a decrease in long-term borrowings with the Federal Home Loan Bank resulting from scheduled principal curtailments, which was partially offset by an increase in Virginia Partners’ majority owned subsidiary Johnson Mortgage Company, LLC’s warehouse line of credit with another financial institution; and Total stockholders’ equity as of June 30, 2022 was $134.8 million, a decrease of $6.6 million, or 4.7%, from December 31, 2021. Key drivers of this change were an increase in accumulated other comprehensive (loss), net of tax, and cash dividends paid to shareholders, which were partially offset by the net income attributable to the Company for the six months ended June 30, 2022, the proceeds from stock option exercises, and stock-based compensation expense related to restricted stock awards. Changes in key balance sheet components as of June 30, 2022 compared to June 30, 2021 were as follows: Total assets as of June 30, 2022 were $1.69 billion, an increase of $81.2 million, or 5.0%, from June 30, 2021. Key drivers of this change were increases in investment securities available for sale, at fair value, and total loans held for investment, which were partially offset by decreases in cash and cash equivalents; Interest bearing deposits in other financial institutions as of June 30, 2022 were $275.6 million, an increase of $28.0 million, or 11.3%, from June 30, 2021. Key drivers of this change were total deposit growth outpacing total loan growth and the Company repositioning its excess liquidity in order to earn higher amounts of interest income, which were partially offset by an increase in investment securities available for sale, at fair value, and decreases in long-term borrowings with the Federal Home Loan Bank and subordinated notes payable, net; Federal funds sold as of June 30, 2022 were $24.7 million, a decrease of $41.9 million, or 62.9%, from June 30, 2021. Key drivers of this change were the aforementioned items noted in the analysis of interest bearing deposits in other financial institutions; Investment securities available for sale, at fair value as of June 30, 2022 were $135.4 million, an increase of $16.5 million, or 13.8%, from June 30, 2021. Key drivers of this change were management of the investment securities portfolio in light of the Company’s liquidity needs and lower accelerated prepayments on mortgage-backed investment securities in the low interest rate environment, which were partially offset by higher yielding investment securities being called and an increase in unrealized losses on the investment securities available for sale portfolio; Loans, net of unamortized discounts on acquired loans of $1.9 million as of June 30, 2022 were $1.17 billion, an increase of $77.7 million, or 7.1%, from June 30, 2021. Key drivers of this change were an increase in organic growth, including growth of approximately $63.5 million in loans related to Virginia Partners’ recent expansion into the Greater Washington market, which was partially offset by forgiveness payments received of approximately $25.9 million under rounds one and two of the PPP. As of June 30, 2022, approximately $247 thousand in loans under round two of the PPP were still outstanding; Total deposits as of June 30, 2022 were $1.50 billion, an increase of $87.6 million, or 6.2%, from June 30, 2021. Key drivers of this change were organic growth as a result of our continued focus on total relationship banking and Virginia Partners’ recent expansion into the Greater Washington market, and customers seeking the liquidity and safety of deposit accounts in light of continuing economic uncertainty and volatility in stock and other investment markets; Total borrowings as of June 30, 2022 were $49.2 million, a decrease of $2.7 million, or 5.2%, from June 30, 2021. Key drivers of this change were a decrease in long-term borrowings with the Federal Home Loan Bank resulting from scheduled principal curtailments, and the early redemption of $2.0 million in subordinated notes payable, net, in early July 2021; and Total stockholders’ equity as of June 30, 2022 was $134.8 million, a decrease of $2.6 million, or 1.9%, from June 30, 2021. Key drivers of this change were an increase in accumulated other comprehensive (loss), net of tax, and cash dividends paid to shareholders, which were partially offset by the net income attributable to the Company for the period July 1, 2021 through June 30, 2022, the proceeds from stock option exercises, and stock-based compensation expense related to restricted stock awards. As of June 30, 2022, all of the capital ratios of Delmarva and Virginia Partners continue to exceed regulatory requirements, with total risk-based capital substantially above well-capitalized regulatory requirements. Asset Quality The asset quality measures depicted below continue to reflect the Company’s efforts to prudently charge-off loans as losses are identified and maintain an appropriate allowance for credit losses. The following table depicts the net charge-off activity for the three and six months ended June 30, 2022 and 2021:

  • Where is Johnson Mortgage's headquarters?

    Johnson Mortgage's headquarters is located at 739 Thimble Shoals Blvd, Newport News.

  • What is Johnson Mortgage's latest funding round?

    Johnson Mortgage's latest funding round is Corporate Majority.

  • Who are the investors of Johnson Mortgage?

    Investors of Johnson Mortgage include Virginia Partners Bank.

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