RALEIGH, N.C., Nov. 02, 2020 (GLOBE NEWSWIRE) -- Integrated Financial Holdings, Inc (formerly West Town Bancorp, Inc.) (OTC PINK: IFHI) (the “Company” or “IFH”), the financial holding company for West Town Bank & Trust (“the Bank”), released its financial results for the three and nine months ended September 30, 2020. Highlights include the following:

• Third quarter net income of $1.7 million or $0.78 per diluted share, compared to net income of $2.2 million or $0.91 per diluted share for the third quarter of 2019.   Income for 2019 was positively impacted by a nonrecurring adjustment which decreased loan and legal related expenses pertaining to the guaranteed loan portfolio as the Company was able to recapture some of its previously expensed costs resulting in a negative expense for that prior year quarter.
• Provision for loan losses of $125,000 for the third quarter of 2020 compared to $200,000 for the same period in 2019.
• Return on average assets of 1.84%, compared to 2.85% for the third quarter of 2019.
• Return on average common equity of 9.23%, compared to 12.49% for the third quarter of 2019.
• Return on average tangible common equity (a non-GAAP financial measure) of 12.76%, compared to 17.94% for the third quarter of 2019.
• Windsor processing and servicing revenue of $2.6 million, compared to $1.8 million for the same period in 2019.
• Mortgage origination and sales revenue of $2.4 million as compared to $975,000 for the same period in 2019.
  

As previously announced, on May 6, 2019, Sound Bank (now known as Dogwood State Bank), formerly a wholly owned subsidiary of IFH, completed a recapitalization that resulted in a significant reduction in IFH’s ownership position in the Bank. Therefore, on a comparative basis, the Company’s year-to-date financial results for 2020 do not include any operating impact from Sound Bank, whereas the financial results for the same period in 2019 are impacted by the performance of Sound Bank.   

Eric Bergevin, President & CEO, commented, “We are pleased with our third quarter financial results with improvements in asset quality, and we are very satisfied with the Company’s rebranding to IFH, aligning our identity and messaging with the strategic endeavors we embody. Our financial results are primarily due to several initiatives taken during the year. First, we continued to execute on our Originate-and-Hold strategy whereby we grew our GGL portfolio and held onto the guaranteed piece, thereby leveraging capital and increasing net interest income. Second, we began selling a small portion of 10-year government guaranteed loans before premium deterioration started to occur. Finally, mortgage volume has remained vibrant during the period and Windsor has had a record quarter for SBA 7(a) loan closings. As expected, our conservative approach as COVID-19 started shutting down the economy early this year has resulted in much lower provisions, charge-off’s and NPA’s in the third quarter and we expect this trend to continue into fourth quarter and 2021. Our corporate expansion and rebranding efforts have gained traction with the growth and maturation of our new subsidiaries, including SBA Loan Documentation Services, LLC, Glenwood Structured Finance, LLC and the current launch of West Town Payments, LLC, which is a direct acquirer for payment processing. Our new payments team is expected to augment the new and already robust deposit initiatives we kicked-off earlier this year as evidenced by our increased growth in non-interest bearing deposits accounts.”

BALANCE SHEET
At September 30, 2020, the Company’s total assets were $374.0 million, net loans held for investment were $240.0 million, loans held for sale were $35.7 million, total deposits were $285.8 million and total shareholders’ equity was $75.0 million. Compared with December 31, 2019, total assets increased $59.8 million or 19%, net loans held for investment increased $20.3 million or 9%, loans held for sale increased $23.2 million or 184%, total deposits increased $65.3 million or 30%, and total shareholders’ equity increased $7.4 million or 11%. The increases in assets and loans reflect the Bank’s participation in the PPP program, funding $22.8 million for its existing customers and originating $55.6 million in Government Guaranteed Loans (“GGL”), while selling only $18.6 million in GGL loans due to the “Originate-and-Hold” strategy which began in mid-first quarter of 2020. The Originate-and-Hold strategy indicates the Company holds the guaranteed portion of loans originated rather than selling them in the secondary market at a premium based on secondary market indicators. While this strategy has a short-term negative impact on profitability, the impact of leveraging the capital of the Company’s bank subsidiary, earning the additional spread income and ultimately taking the gains on premium should enhance overall long-term profitability. Executing a strategic advance into the hemp banking space (trademarked “Hemp Banks Here”) and added resources to Commercial Account Services (full-service treasury management solutions) to service this segment, along with the Bank’s GGL customers, has resulted in increased deposit levels. The increase in total shareholders’ equity was primarily a result of the income posted for the second quarter.

During the quarter, the Bank formed a new company, West Town Payments, LLC (“WTP”), and entered into an agreement whereby the Bank owns 48% of the common shares of the entity. WTP provides physical point-of-sale, online, contactless and mobile payment solutions to both targeted and generalist verticals and is well-equipped with the experience and compliance-driven framework to work directly with the Bank’s hemp-related customers. The financial position and results of the first three months of operation of WTP are included in the consolidated balances for IFH and the noncontrolling interest portion shown separately. Melissa Marsal, the Bank’s EVP/Chief Operating Officer, commented “Partnering with West Town Payments is a strategic alignment aimed to provide better, faster and more reliable service to our customers, starting with hemp businesses. Through combined expertise in commercial banking, on-boarding due diligence, compliance monitoring and payment processing, the Bank is poised to further increase deposits and provide an unmatched client experience in the hemp banking industry.”

CAPITAL LEVELS
At September 30, 2020, the regulatory capital ratios of West Town Bank & Trust exceeded the minimum thresholds established for well-capitalized banks under applicable banking regulations.

	"Well Capitalized" Minimum	Basel III Fully Phased-In	West Town Bank & Trust
Tier 1 common equity ratio	6.50%	7.00%	13.88%
Tier 1 risk-based capital ratio	8.00%	8.50%	13.88%
Total risk-based capital ratio	10.00%	10.50%	15.14%
Tier 1 leverage ratio	5.00%	4.00%	10.26%

The Company’s book value per common share increased from $29.86 at September 30, 2019 to $34.08 at September 30, 2020. The Company’s tangible book value per common share (a non-GAAP financial measure) increased from $20.57 at September 30, 2019 to $24.83 at September 30, 2020, as a result of share repurchases over the period and the net income of the Company.

ASSET QUALITY
The Company’s nonperforming assets to total assets ratio decreased from 3.99% at December 31, 2019 to 3.29% at September 30, 2020, as management continued to address credit concerns surrounding the potential economic impact of COVID-19 and the widespread societal responses to the pandemic. Nonaccrual loans decreased $410,000 as of September 30, 2020 as compared to December 31,2019 while foreclosed assets increased $152,000 during the same period. Patriarch, LLC, a subsidiary of the holding company, formed to expedite the liquidation and recovery of certain Bank assets, held $3.3 million in foreclosed assets. The Company regularly conducts impairment analyses on all nonperforming assets with updated appraisals to ensure the assets are carried at the lower of net realizable value or book value, with any deficits charged off immediately versus carrying specific reserves.

The Company recorded a $125,000 provision for loan losses during the third quarter of 2020, as compared to a provision of $200,000 in third quarter 2019, as management continues to respond to concerns over deteriorating economic conditions driven by the ongoing COVID-19 pandemic. COVID-related deferrals under the CARES Act peaked at 115 loans as of June 30, 2020 with net exposure of $54.2 million. COVID-related deferrals have since decreased to 25 loans with net exposure of $16.8 million. Expected loss estimates consider the impacts of decreased economic activity and higher unemployment, partially offset by the mitigating benefits of government stimulus and industry wide loan modification efforts. The Company recorded minimal net charge-offs during the third quarter 2020.

(Dollars in thousands)	9/30/20			6/30/20			3/31/20			12/31/19			9/30/19
Nonaccrual loans	$	8,790		$	7,799		$	7,732		$	9,200		$	4,813
Foreclosed assets		3,522			4,464			5,243			3,370			2,028
90 days past due and still accruing		-			-			-			-			-
Total nonperforming assets		12,312			12,263			12,975			12,570			6,841
Net charge-offs	$	2		$	667		$	2,390		$	779		$	138
Annualized net charge-offs to total average portfolio loans		0.00	%		1.13	%		4.39	%		1.36	%		0.25	%
Ratio of total nonperforming assets to total assets		3.29	%		3.45	%		4.16	%		3.99	%		2.21	%
Ratio of total nonperforming loans to total loans, net of allowance		3.66	%		3.33	%		3.66	%		4.19	%		2.31	%
Ratio of total allowance for loan losses to total loans		2.05	%		2.05	%		2.27	%		1.72	%		1.64	%

NET INTEREST INCOME AND MARGIN
Net interest income for the three months ended September 30, 2020 increased $155,000 or 4% in comparison to the third quarter of 2019, as loan growth year over year offset the impact of net interest margin. The net interest margin was 4.52% for the third quarter of 2020 compared to 5.34% for the same period in 2019. Interest-earning asset yields decreased from 6.89% to 5.59% and interest-bearing liabilities cost decreased from 2.27% to 1.61% year-over-year between September 30, 2019 and September 30, 2020.

Net interest income for the nine months ended September 30, 2020 decreased $2.7 million or 20% in comparison to the same period in 2019, largely due to the deconsolidation of Sound Bank from the consolidated financial statements as of May 6, 2019.

	Three Months Ended											Year-To-Date
(Dollars in thousands)	9/30/20		6/30/20		3/31/20		12/31/19		9/30/19			9/30/20		9/30/19
Average balances:
Loans	$	270,897	$	250,125	$	226,683	$	229,965	$	220,939		$	249,235	$	317,221
Investment securities		25,581		24,743		23,861		21,572		21,111			24,728		21,063
Interest-bearing balances and other		22,596		22,326		17,046		16,238		16,801			20,656		39,367
Total interest-earning assets		319,074		297,194		267,590		267,775		258,851			294,619		377,651
Noninterest-bearing deposits		77,857		64,617		56,329		52,464		47,199			66,268		78,319
Interest-bearing liabilities:
Interest-bearing deposits		204,204		185,507		166,567		179,162		170,390			185,426		247,275
Borrowed funds		6,793		23,459		16,475		6,167		6,452			15,576		20,387
Total interest-bearing liabilities		210,997		208,966		183,042		185,329		176,842			201,002		267,662
Total assets		371,395		353,179		313,476		311,293		300,011			346,016		430,151
Common shareholders' equity		73,970		71,035		68,445		67,078		68,448			71,296		76,375
Tangible common equity (1)		53,463		50,343		47,570		46,448		47,637			50,604		51,456
Interest income/expense:
Loans	$	4,394	$	4,283	$	4,559	$	4,139	$	4,315		$	13,236	$	16,655
Investment securities		64		72		95		82		76			231		343
Interest-bearing balances and other		35		36		76		83		105			147		702
Total interest income		4,493		4,391		4,730		4,304		4,496			13,614		17,700
Deposits		855		835		845		979		942			2,535		3,478
Borrowings		1		70		109		56		72			180		574
Total interest expense		856		905		954		1,035		1,014			2,715		4,052
Net interest income	$	3,637	$	3,486	$	3,776	$	3,269	$	3,482		$	10,899	$	13,648
(1) Non-GAAP financial measure. Tangible common equity is calculated by subtracting intangible assets from common shareholders' equity

	Three Months Ended											Year-To-Date
	9/30/20		6/30/20		3/31/20		12/31/19		9/30/19			9/30/20		9/30/19
Average yields and costs:
Loans	6.44	%	6.87	%	8.07	%	7.14	%	7.75	%		7.07	%	6.99	%
Investment securities	1.00	%	1.16	%	1.59	%	1.52	%	1.44	%		1.25	%	2.17	%
Interest-bearing balances and other	0.61	%	0.65	%	1.79	%	2.03	%	2.48	%		0.95	%	2.38	%
Total interest-earning assets	5.59	%	5.93	%	7.09	%	6.38	%	6.89	%		6.16	%	6.24	%
Interest-bearing deposits	1.66	%	1.81	%	2.03	%	2.17	%	2.19	%		1.82	%	1.87	%
Borrowed funds	0.06	%	1.20	%	2.65	%	3.60	%	4.43	%		1.54	%	3.75	%
Total interest-bearing liabilities	1.61	%	1.74	%	2.09	%	2.22	%	2.27	%		1.80	%	2.02	%
Cost of funds	1.18	%	1.33	%	1.60	%	1.73	%	1.80	%		1.35	%	1.56	%
Net interest margin	4.52	%	4.70	%	5.66	%	4.84	%	5.34	%		4.93	%	4.81	%

NONINTEREST INCOME
Noninterest income for the three months ended September 30, 2020 was $6.6 million, an increase of $2.6 million or 67% as compared to the three months ended September 30, 2019. Specific items to note include:

• Windsor, a subsidiary of the Company which offers an SBA and USDA loan servicing platform, had processing and servicing revenue totaling $2.6 million for the three months ended September 30, 2020, an increase of $805,000, or 45% as compared to the $1.8 million in income earned during the three months ended September 30, 2019. The increase is attributable to a record quarter in SBA 7(a) loan closings and continued growth in the servicing portfolio.
• Mortgage revenue totaled $2.4 million, an increase of $1.4 million or 146% as compared to the third quarter 2019. Mortgage loans originated to sell to the secondary market increased from $26.4 million in the third quarter 2019 to $50.3 million in the third quarter 2020.
• GGL revenue was $571,000 in the third quarter of 2020, a decrease of $412,000 or 42% in comparison to the same period in 2019. GGL volume was impacted by the Company’s “Originate-and-Hold” strategy as the Company moved to leverage its balance sheet for long-term profitability.

Noninterest income for the nine months ended September 30, 2020 was $27.4 million, an increase of $8.6 million or 45% as compared to the $18.9 million in the same prior year period. The most notable increase was due to Windsor revenues, which increased by $13.2 million period over period from $5.2 million in the nine months ended September 30, 2019 to $18.5 million for the nine months ended September 30, 2020. That growth was primarily driven by the Paycheck Protection Plan (“PPP”) as Windsor processed more than 16,000 loan applications totaling more than $2.3 billion for over 40 of its institutional lender clients during the second quarter.

NONINTEREST EXPENSE
Noninterest expense for the third quarter of 2020 was $7.8 million, an increase of $3.4 million or 78%, from $4.4 million for the third quarter of 2019. The primary cause for the change was a nonrecurring adjustment which decreased loan and legal related expenses in the third quarter of 2019 related to the guaranteed loan portfolio as the Bank was able to recapture some of its previously expensed costs which positively impacted that quarter. In addition, “one time” software expense and “one time” compensation expense increased $3.4 million from $3.2 million in the third quarter of 2019 to $6.6 million for the same period in 2020 as the Company processed more the large volume of PPP applications and continued to expand and grow its business lines including the addition of WTP in the current quarter. For the nine-month period ended September 30, 2020, noninterest expense increased from $19.0 million in the first nine months of 2019 to $24.7 million for the same period in 2020, primarily as a result of additional compensation due to the PPP program in the second quarter of 2020.

ABOUT INTEGRATED FINANCIAL HOLDINGS, INC.
Integrated Financial Holdings, Inc. is a financial holding company based in Raleigh, NC. The Company changed its name from West Town Bancorp, Inc. in the third quarter 2020 after a successful shareholder vote approving the action on July 23, 2020. The Company is the holding company for West Town Bank & Trust, an Illinois state-chartered bank. West Town Bank & Trust provides banking services through its full-service office located in the greater Chicago area. The Company is also the parent company of: Windsor Advantage, LLC, a loan servicing company; West Town Insurance Agency, Inc., an insurance agency; Patriarch, LLC, a real estate management company; SBA Loan Documentation Services, LLC, a loan documentation origination company; and Glenwood Structured Finance, LLC, a loan broker and large loan syndication company. The Company is registered with, and supervised by, the Federal Reserve. West Town Bank & Trust’s primary regulators are the Illinois Department of Financial and Professional Regulation and the FDIC.

For more information, visit https://ifhinc.com/.

Important Note Regarding Forward-Looking Statements
This release contains certain forward-looking statements with respect to the financial condition, results of operations, and business of the Company. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of the Company and on the information available to management at the time this release was prepared. These statements can be identified by the use of words such as "expect," "anticipate," "estimate," "believe," variations of these words, and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause a difference include, among others: changes in the national and local economies or market conditions; changes in interest rates, deposit flows, loan demand, and asset quality, including real estate and other collateral values; changes in Small Business Administration rules, regulations, or loan products, including the section 7(a) program; changes in other government guaranteed loan programs or our ability to participate in such programs; changes in tax law, including the impact of such changes on our tax assets and liabilities; future governmental shutdowns that may impact revenues associated with our lending and other operations that are dependent on government guaranteed loan programs; changes in banking regulations and accounting principles, policies, or guidelines; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with the Company’s acquisition and divesture activities; the failure of our strategic investments or acquisitions to perform as anticipated and the impact of any impairments to our intangible assets, such as goodwill; the impact of our strategic initiatives on our ability to retain key employees, and the impact of competition from traditional or new sources. These, and other factors that may emerge, could cause decisions and actual results to differ materially from current expectations. The Company assumes no obligation to revise, update, or clarify forward-looking statements to reflect events or conditions after the date of this release.        

Consolidated Balance Sheet
				Ending Balance
(Dollars in thousands, unaudited)				9/30/20			6/30/20			3/31/20			12/31/19			9/30/19
Assets
Cash and due from banks				$	6,007		$	6,183		$	5,928		$	5,021		$	4,085
Interest-bearing deposits					13,294			11,644			8,518			9,849			16,068
	Total cash and cash equivalents				19,301			17,827			14,446			14,870			20,153
Interest-bearing time deposits					2,746			2,746			2,746			2,746			2,746
Securities, at fair value					24,462			26,081			24,946			21,087			21,804
Loans held for sale					35,743			23,072			11,839			12,568			13,965
Loans held for investment:
	Originated loans				244,994			238,926			216,423			223,470			211,647
	Allowance for loan and lease losses				(5,029	)		(4,906	)		(4,907	)		(3,837	)		(3,462	)
		Loans held for investment, net			239,965			234,020			211,516			219,633			208,185
Premises and equipment, net					4,628			4,761			4,740			4,761			4,795
Foreclosed assets					3,522			4,464			5,243			3,370			2,028
Loan servicing assets					3,265			3,262			3,528			3,358			3,053
Bank owned life insurance					5,109			5,082			5,048			5,021			4,993
Accrued interest receivable					1,705			1,422			1,067			1,116			1,079
Goodwill					13,161			13,161			13,161			13,150			12,721
Other intangible assets, net					7,224			7,409			7,596			7,782			7,968
Other assets					13,186			12,349			6,370			4,729			5,779
			Total assets	$	374,017		$	355,656		$	312,246		$	314,191		$	309,269
Liabilities and Shareholders' Equity
Liabilities
Deposits:
	Noninterest-bearing			$	78,849		$	66,874		$	59,360		$	49,573		$	54,380
	Interest-bearing				206,913			198,108			162,059			170,869			177,472
		Total deposits			285,762			264,982			221,419			220,442			231,852
Borrowings					4,000			6,000			17,649			19,295			2,382
Accrued interest payable					396			391			433			429			424
Other liabilities					8,845			10,771			5,735			6,300			8,092
	Total liabilities				299,003			282,144			245,236			246,466			242,750
Shareholders' equity:
Common stock, voting					2,181			2,193			2,193			2,166			2,206
Common stock, non-voting					22			22			22			22			22
Additional paid in capital					24,220			24,357			24,162			24,245			24,771
Retained earnings					48,349			46,629			40,371			41,203			39,446
Accumulated other comprehensive income					308			311			262			89			74
	Total IFH, Inc. shareholders' equity				75,080			73,512			67,010			67,725			66,519
Noncontrolling interest					(66	)		-			-			-			-
	Total shareholders' equity				75,014			73,512			67,010			67,725			66,519
			Total liabilities and shareholders' equity	$	374,017		$	355,656		$	312,246		$	314,191		$	309,269

Financial Performance (Consolidated)
(Dollars in thousands except share	Three Months Ended														Year-To-Date
and per share data; unaudited)	9/30/20			6/30/20		3/31/20			12/31/19		9/30/19				9/30/20			9/30/19
Interest income
Loans	$	4,394		$	4,283	$	4,559		$	4,139	$	4,315			$	13,236		$	16,655
Investment securities and deposits		99			108		171			165		181				378			1,045
Total interest income		4,493			4,391		4,730			4,304		4,496				13,614			17,700
Interest expense
Interest on deposits		855			835		845			979		942				2,535			3,478
Interest on borrowed funds		1			70		109			56		72				180			574
Total interest expense		856			905		954			1,035		1,014				2,715			4,052
Net interest income		3,637			3,486		3,776			3,269		3,482				10,899			13,648
Provision for loan losses		125			665		3,460			1,155		200				4,250			850
Noninterest income
Windsor processing and servicing revenue		2,579			14,186		1,713			2,256		1,774				18,478			5,231
Mortgage		2,400			1,573		1,418			716		975				5,391			3,617
Government guaranteed lending		571			37		755			2,288		983				1,363			2,523
SBA documentation preparation fees		195			423		74			15		-				692			-
Bank-owned life insurance		15			34		27			28		29				45			129
Service charge		28			11		19			29		23				89			348
Gain on deconsolidation of Sound Bank		-			-		-			-		-				-			6,635
Other noninterest income		771			(56	)	635			83		153				1,350			367
Total noninterest income		6,559			16,208		4,641			5,415		3,937				27,408			18,850
Noninterest expense
Compensation		4,422			5,682		3,753			3,750		3,199				13,857			10,845
Occupancy and equipment		289			211		256			221		343				756			1,187
Loan and special asset expenses		1,013			816		242			318		(523	)			2,071			222
Professional services		534			676		490			359		432				1,700			1,583
Data processing		187			165		148			109		161				500			704
Software		415			2,221		249			172		160				2,885			673
Communications		83			82		89			80		33				254			369
Advertising		109			215		55			86		51				379			272
Transaction-related		-			4		17			16		1				21			960
Amortization of intangibles		186			186		186			186		186				558			744
Other operating expenses		545			589		545			464		335				1,679			1,483
Total noninterest expense		7,783			10,847		6,030			5,761		4,378				24,660			19,042
Income (loss) before income taxes		2,288			8,182		(1,073	)		1,768		2,841				9,397			12,606
Income tax expense (benefit)		634			1,924		(241	)		37		687				2,317			3,258
Net income (loss)		1,654			6,258		(832	)		1,731		2,154				7,080			9,348
Noncontrolling interest		(66	)		-		-			-		-				(66	)		-
Net income (loss) attributable
to IFH, Inc.	$	1,720		$	6,258	$	(832	)	$	1,731	$	2,154			$	7,146		$	9,348
Basic earnings (loss) per common share	$	0.79		$	2.87	$	(0.38	)	$	0.79	$	0.93			$	3.27		$	3.35
Diluted earnings (loss) per common share	$	0.78		$	2.84	$	(0.37	)	$	0.78	$	0.91			$	3.23		$	3.29
Weighted average common shares outstanding		2,176			2,177		2,193			2,196		2,328				2,182			2,790
Diluted average common shares outstanding		2,206			2,204		2,232			2,234		2,369				2,215			2,840

Performance Ratios
		Three Months Ended																Year-To-Date
		9/30/20			6/30/20			3/31/20			12/31/19			9/30/19				9/30/20			9/30/19
PER COMMON SHARE
	Basic earnings (loss) per common share	$	0.79		$	2.87		$	(0.38	)	$	0.79		$	0.93			$	3.27		$	3.35
	Diluted earnings (loss) per common share		0.78			2.84			(0.37	)		0.78			0.91				3.23			3.29
	Book value per common share		34.08			33.19			30.25			30.78			29.86				34.08			29.86
	Tangible book value per common share		24.83			23.90			20.88			21.27			20.57				24.83			20.57
FINANCIAL RATIOS (ANNUALIZED)
	Return on average assets		1.84	%		7.11	%		-1.06	%		2.21	%		2.85	%			2.75	%		2.89	%
	Return on average common shareholders' equity		9.23	%		35.34	%		-4.88	%		10.24	%		12.49	%			13.35	%		16.30	%
	Return on average tangible common equity		12.76	%		49.86	%		-7.02	%		14.79	%		17.94	%			18.81	%		24.20	%
	Net interest margin		4.52	%		4.70	%		5.66	%		4.84	%		5.34	%			4.93	%		4.17	%
	Efficiency ratio (1)		76.3	%		55.1	%		71.4	%		66.2	%		59.0	%			64.3	%		69.9	%
	(1) Efficiency ratio is calculated by dividing noninterest expense less transaction-related costs by the sum of net interest
	income and noninterest income, less gains or losses on sale of securities and consolidation and the fair value
	adjustment on the equity investment in Sound Bank.

Loan Concentrations

The top ten commercial loan concentrations as of September 30, 2020 were as follows:

			% of
			Commercial
(in millions)	Amount		Loans
Solar Electric Power Generation	$	52.3	29%
Lessors of Nonresidential Buildings (except Miniwarehouses)		20.2	11%
Hotels (except Casino Hotels) and Motels		13.5	8%
Lessors of Residential Buildings and Dwellings		9.0	5%
Other Activities Related to Real Estate		7.4	4%
Lessors of Other Real Estate Property		6.4	4%
General Freight Trucking, Local		4.9	3%
Golf Courses and Country Clubs		3.8	2%
Child Day Care Services		3.7	2%
Colleges, Universities, and Professional Schools		3.5	2%

Contact: Eric Bergevin, 252-482-4400