Day: April 23, 2021

REGI – ROSEN, RESPECTED INVESTOR COUNSEL, Encourages Renewable Energy Group, Inc. Investors to Secure Counsel Before Important May 3 Deadline in Securities Class Action – REGI

NEW YORK, April 23, 2021 /PRNewswire/ —

WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of the securities of Renewable Energy Group, Inc. (NASDAQ: REGI) between May 3, 2018 and February 25, 2021, inclusive (the “Class Period”), of the important May 3, 2021 lead plaintiff deadline.

SO WHAT: If you purchased Renewable Energy Group securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.

WHAT TO DO NEXT: To join the Renewable Energy Group class action, go to http://www.rosenlegal.com/cases-register-2048.html or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] or [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than May 3, 2021. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.

WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience or resources. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020 founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.

DETAILS OF THE CASE:  According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) due to failures in the diesel additive system, petroleum diesel was not periodically added to certain loads by the Company and was instead added by the Company’s customers; (2) as a result, Renewable Energy Group was not the proper claimant for certain biodiesel tax credit (BTC) payments on biodiesel it sold between January 1, 2017 and September 30, 2020; (3) a result, Renewable Energy Group’s revenue and net income were overstated for certain periods; (4) there was a material weakness in the Company’s internal control over financial reporting related to the purchase and use of the petroleum diesel gallons when blending with biodiesel; and (5) as a result of the foregoing, defendants’ positive statements about Renewable Energy Group’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis. When the true details entered the market, the lawsuit claims that investors suffered damages.

To join the Renewable Energy Group class action, go to http://www.rosenlegal.com/cases-register-2048.html or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] or [email protected] for information on the class action.

No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.

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Attorney Advertising. Prior results do not guarantee a similar outcome.

Contact Information:

      Laurence Rosen, Esq.
      Phillip Kim, Esq.
      The Rosen Law Firm, P.A.
      275 Madison Avenue, 40th Floor
      New York, NY 10016
      Tel: (212) 686-1060
      Toll Free: (866) 767-3653
      Fax: (212) 202-3827
      [email protected]
      [email protected]
      [email protected]
      www.rosenlegal.com 


 

SOURCE Rosen Law Firm, P.A.

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T – Report: AT&T Seeking Buyer for WarnerMedia Unit Rooster Teeth

Is a media-heavy telecom giant about to hive off one of its content producers?

On Friday Bloomberg, citing “people familiar with the matter,” wrote that AT&T (NYSE:T) is actively searching for potential buyers for Rooster Teeth Productions, part of its WarnerMedia entertainment arm. It was unclear what price the company is aiming to get for the subsidiary, and whether or not there are interested counterparties.

A hand holding a remote control with a TV in the background.

Image source: Getty Images.

Rooster Teeth, which was founded in 2003, is a video production company based in Austin, Texas, that makes a variety of both animated and live-action content. AT&T acquired the business as part of a broader 2018 deal for a majority stake in its then-owner, Otter Media.

Under AT&T, Rooster Teeth was slimmed down. In late 2020, 13% of the production company’s staff was laid off and a new general manager was brought in. Previous to that, co-founder Burnie Burns exited the company to explore new ventures.

The unit has not done well in recent years. According to one of Bloomberg’s sources, its annual revenue fell to roughly $50 million in 2019; the previous year Rooster Teeth reaped around $70 million.

The “for sale” sign in Rooster Teeth’s window is part of a broader move to jettison non-core AT&T assets. As with other major telecoms, the company plans to widen its high-speed 5G network, an undertaking that promises to be an expensive and long-duration project. It also aims to continue building out its fiber-optic assets.

In the entertainment sphere, the company prefers to put money into productions for its successful video streamer HBO Max.

Investors didn’t appear to be confident of a windfall with the Rooster Teeth sale. AT&T stock lagged behind the broader market Friday, inching up only 0.1% compared to the 1.1% rise of the S&P 500 index.

 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

TCFC – The Community Financial Corporation Announces Record Results of 1.22% Return on Average Assets for First Quarter 2021

First Quarter 2021 Highlights

  • Net Income: Net income totaled $6.3 million for the quarter ended March 31, 2021, or $1.07 per diluted common share compared to net income of $2.7 million or $0.47 per diluted common share for the quarter ended March 31, 2020.
  • Overall Profitability: The Company’s return on average assets (“ROAA”) and return on average common equity (“ROACE”) were 1.22% and 12.53% for the three months ended March 31, 2021 compared to 0.61% and 6.00% for the three months ended March 31, 2020. The Company improved ROAA from its previous record results of 1.18% reported in the fourth quarter of 2020.
  • Core Profitability: Pre-tax, pre-provision (“PTPP”) ROAA and PTPP ROACE increased to 1.68% and 17.34% for the quarter ended March 31, 2021 compared to 1.51% and 14.82% for the quarter ended March 31, 2020.
  • Dividend Increase: The Company increased its quarterly per share dividend 20% from $0.125 to $0.15 for the first quarter dividend that will be paid in the second quarter of 2021.
  • Asset Quality Improvement
    • Non-accrual loans, OREO and TDRs to total assets decreased 31 basis points to 0.77% at March 31, 2021 from 1.08% at December 31, 2020. Classified assets decreased $6.2 million to $16.1 million at March 31, 2021 from $22.4 million at December 31, 2020.
    • At March 31, 2021, COVID-19 deferred loans decreased to $23.1 million, representing 1.08% of assets, or 1.53% of gross loans, excluding U.S. Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loans.

WALDORF, Md., April 23, 2021 (GLOBE NEWSWIRE) — The Community Financial Corporation (NASDAQ: TCFC) (the “Company”), the holding company for Community Bank of the Chesapeake (the “Bank”), today reported its results of operations for the three months ended March 31, 2021. Net income for the three months ended March 31, 2021 was $6.3 million, or $1.07 per diluted common share compared with net income of $6.1 million, or $1.04 per diluted common share for the fourth quarter of 2020, and net income of $2.7 million or $0.47 per diluted common share for the quarter ended March 31, 2020.

Management Commentary

“I am proud of the results our team has delivered during the prolonged pandemic while remaining committed to our communities, our shareholders and each other. This was the second consecutive quarter of record ROAA performance for the Company, despite these challenging economic conditions,” stated William J. Pasenelli, Chief Executive Officer. “In addition to delivering strong results during the first quarter, we significantly reduced nonperforming assets, introduced two new product lines, continued to optimize our branch and virtual banking operations, and continued to drive operating efficiency.”

During March 2021, the Bank introduced a new residential mortgage program and retail and commercial credit card program that merge the technology and expertise of two proven FinTech firms with our business development team’s demonstrated capabilities. “These two new programs are the result of outstanding collaboration between our team and two great partners and a great example of how our community bank can provide local businesses and consumers best of class FinTech products and services,” stated James M. Burke, President.

The Bank’s expansion into Virginia has been a growth engine for the last five years. “Since opening our downtown Fredericksburg branch in 2016, our lenders and business development teams have done an incredible job driving deposit and loan growth in this market,” said William J. Pasenelli, Chief Executive Officer. “We believe Fredericksburg provides significant opportunities for continued organic growth supported by our efficient operating model and ability to leverage technology.” At March 31, 2021, loans in the greater Fredericksburg, Virginia area accounted for approximately 40% of the Bank’s outstanding portfolio loans, and Fredericksburg branch deposits were $89 million with an average cost of deposits of six basis points.

On April 21, 2021, the Bank purchased its second location in Virginia at 5831 Plank Road, Spotsylvania. The full-service branch is expected to open in late 2021 and will provide banking, lending and wealth management services with a focus on digital banking. Effective March 31, 2021, the Bank consolidated its St. Patrick’s Drive branch in Waldorf, Maryland into the Bank’s nearby main office branch. This realignment of our branches will enable the Company to serve a wider customer base. The net financial impact of the new Spotsylvania branch and the closing of the St. Patrick’s Drive branch is expected to be neutral to the Company’s expense run rate.

Results of Operations

    (UNAUDITED)        
    Three Months Ended March 31,        
(dollars in thousands)   2021   2020   $ Change   % Change
Interest and dividend income   $ 17,678     $ 18,039     $ (361 )   (2.0 )%
Interest expense   1,169     3,686     (2,517 )   (68.3 )%
Net interest income   16,509     14,353     2,156     15.0  %
Provision for loan losses   295     4,100     (3,805 )   (92.8 )%
Noninterest income   2,360     2,121     239     11.3  %
Noninterest expense   10,148     9,683     465     4.8  %
Income before income taxes   8,426     2,691     5,735     213.1  %
Income tax expense (benefit)   2,127     (57 )   2,184     (3,831.6 )%
Net income      $ 6,299     $ 2,748     $ 3,551     129.2  %

Net Interest Income

Net interest income increased $2.16 million or 15.0% for the three months ended March 31, 2021 compared to the three months ended March 31, 2020. Net interest margin of 3.50% for the three months ended March 31, 2021 increased seven basis points from 3.43% for the comparable period. The increase in net interest income resulted primarily from significant decreases in interest expense from lower funding costs. Interest income decreased from significantly lower asset yields partially offset by increased interest income from larger average balances and accelerated loan fee recognition following the forgiveness of U.S. SBA PPP loans.

The sharp decline in interest rates in 2020 not only reduced interest income on floating-rate commercial loans and liquid interest-earning assets, but it also reduced competitive pressures and depositor expectations concerning deposit interest rates. In 2020, the Company increased its net interest margin in the first quarter, had stable margins during the second and third quarters and slightly increased margins during the fourth quarter of 2020 after adjusting for U.S. SBA PPP loan and funding activity. Net interest margin increased from 3.40% for the three months ended December 31, 2020 to 3.50% for the three months ended March 31, 2021. For the three months ended March 31, 2021, net interest margin increased 18 basis points as a result of net U.S. SBA PPP loan interest income and accelerated loan fee recognition compared to seven basis points for the three months ended December 31, 2020.

Loan yields decreased from 4.56% for the three months ended March 31, 2020 to 4.17% for the three months ended March 31, 2021. Loan yields were 4.25% for the fourth quarter of 2020. Loan yields, excluding U.S. SBA PPP loan interest income, were 4.01% for the three months ended March 31, 2021 compared to 4.24% for the three months ended December 31, 2020.

The Company’s cost of funds continued to decrease during the first quarter of 2021. The prepayment of $30.0 million of FHLB advances with a 2.2% average rate in the last six months of 2020, the repricing of time deposits, the increase in non-interest bearing accounts as a percentage of total deposits and lower costs for transaction deposit accounts all contributed to lowering the Bank’s cost of funds in 2020 and 2021. Cost of funds decreased from 0.93% for the three months ended March 31, 2020 to 0.25% for the three months ended March 31, 2021. During the first quarter of 2021, the Company’s cost of funds decreased 17 basis points from 0.42% for the three months ended December 31, 2020.

Excluding the acceleration of interest income with U.S. SBA PPP loan forgiveness, compression of our net interest margin is probable in the second quarter of 2021 as interest-earning assets reprice faster than interest-bearing liabilities. We expect U.S. SBA PPP loan forgiveness to positively impact margins and net interest income in the second and third quarters of 2021 with the recognition of remaining net deferred fees.

Noninterest Income

Noninterest income increased $239,000 or 11.3% for the three months ended March 31, 2021 compared to the three months ended March 31, 2020. The increase for the comparable periods was primarily due to increased gains on the sale of investment securities and increased fees on deposit accounts partially offset by a loss on the sale of impaired loans. During the quarter ended March 31, 2021, the Bank sold non-accrual and classified commercial real estate and residential mortgage loans with an amortized cost, net of charge-offs, of $9.1 million and recognized a loss on the sale of $191,000.

Noninterest income as a percentage of average assets was 0.46% and 0.47%, respectively, for the three months ended March 31, 2021 and 2020.

Noninterest Expense

Noninterest expense of $10.1 million for the three months ended March 31, 2021, increased $465,000 or 4.8%, compared to $9.7 million the three months ended March 31, 2020. The increase in noninterest expense for the comparable periods was primarily due to increases in other expenses of $1.4 million and FDIC insurance of $82,000, partially offset by decreases in compensation and benefits of $400,000 and OREO of $600,000. FDIC insurance increased due to the overall significant increase in FDIC insured deposit accounts that began in the second quarter of 2020. OREO expenses have moderated as the Bank has been successful at disposing foreclosed assets over the last 12 month period, which have been reduced from $6.3 million at March 31, 2020 to $2.3 million at March 31, 2021.

Noninterest expense in the first quarter of 2021 included two non-recurring expenses. First, during the first quarter of 2021, the Company incurred an expense of $1.3 million related to an isolated wire transfer fraud incident. Our investigation determined that no information systems of the Bank were compromised and no employee fraud was involved. No additional expense is expected to be incurred relating to this incident and the Company is submitting an insurance claim which could result in a recovery of a portion of the expense. Any recovery of insurance proceeds would be recognized in the quarter received. Second, compensation and benefits were decreased $250,000 as the Company recorded the deferred costs to underwrite U.S. SBA PPP loans. Deferred costs are being amortized as a component of interest income through the contractual maturity date of each individual U.S. SBA PPP loan. Excluding the impact of these two non-recurring expenses, the Company’s first quarter 2021 noninterest expense was $9.1 million. The Company’s projected quarterly expense run rate for the second quarter of 2021 remains between $9.2-$9.4 million.

The Company’s efficiency ratio was 53.78% for the three months ended March 31, 2021 compared to 58.78% for the three months ended March 31, 2020. The Company’s net operating expense ratio was 1.50% for the three months ended March 31, 2021 compared to 1.68% for the three months ended March 31, 2020. The efficiency and net operating expense ratios have improved (decreased) as the Company has been able to generate more noninterest income while controlling expense growth.

Income Tax Expense

The effective tax rate for the three months ended March 31, 2021 was 25.24% compared to an effective tax rate of (2.1%) for the three months ended March 31, 2020. The Company’s new state tax apportionment approach was implemented during the first quarter of 2020 and included the impact of amended income tax filings of the Company and Bank. Management evaluated the tax position and determined the change in tax position qualified as a change in estimate under FASB ASC Section 250. The following table shows a breakdown of income tax expense for the three months ended March 31, 2020 split between the apportionment adjustment and a normalized 2020 income tax provision:

    (UNAUDITED)
    Three Months Ended March 31, 2020
(dollars in thousands)   Tax Provision   Effective Tax Rate
Income tax apportionment adjustment   $ (743 )   (27.6 )%
Income taxes before apportionment adjustment   686     25.5 %
Income tax expense as reported   $ (57 )   (2.1 )%
         
Income before income taxes   $ 2,691      

Balance Sheet

Assets

Total assets increased $123.1 million, or 6.1%, to $2.15 billion at March 31, 2021 compared to total assets of $2.03 billion at December 31, 2020 primarily due to increased cash of $110.8 million. The increase in cash was principally driven by the cash received from the SBA from the forgiveness of U.S. SBA PPP loans, as well as an increase to our customer deposits accounts from the recent legislation that authorized another round of federal government funding for U.S. SBA PPP loans in December 2020. In addition, net loans and investments increased $8.2 million and $6.4 million, respectively, partially offset by decreases to OREO of $780,000 and all other assets of $1.6 million. The Company’s loan pipeline was $133.3 million at March 31, 2021.

During the first quarter of 2021, total net loans, which include portfolio loans and U.S. SBA PPP loans, increased 2.1% annualized or $8.2 million from $1,594.1 million at December 31, 2020 to $1,602.3 million at March 31, 2021. Gross portfolio loans increased 0.8% annualized or $2.9 million from $1,504.3 million at December 31, 2020 to $1,507.2 million at March 31, 2021. Portfolio loans include all loan portfolios except the U.S. SBA PPP loan portfolio.

Non-owner occupied commercial real estate as a percentage of risk-based capital at March 31, 2021 and December 31, 2020 were $741 million or 328% and $696 million or 316%, respectively. Construction loans as a percentage of risk-based capital at March 31, 2021 and December 31, 2020 were $126 million or 56% and $139 million or 63%, respectively.

Funding

The Bank uses retail deposits and wholesale funding. Retail deposits continue to be the most significant source of funds totaling $1,859.9 million or 98.1% of funding at March 31, 2021 compared to $1,737.6 million or 98.0% of funding at December 31, 2020. Wholesale funding, which consisted of FHLB advances and brokered deposits, were $35.3 million or 1.9% of funding at March 31, 2021 compared to $35.3 million or 2.0% of funding at December 31, 2020.

Total deposits increased $122.3 million or 7.0% (28.0% annualized) at March 31, 2021 compared to December 31, 2020. The increase comprised a $127.5 million increase to transaction deposits offsetting a $5.2 million decrease to time deposits. Non-interest-bearing demand deposits increased $44.2 million or 12.2% at March 31, 2021, representing 21.8% of deposits, compared to 20.7% of deposits at December 31, 2020. Customer deposit balances have increased during the last 12 months due to customer acquisition as well as lower levels of consumer and business spending related to the COVID-19 pandemic.

Stockholders’ Equity and Regulatory Capital

During the three months ended March 31, 2021, total stockholders’ equity increased $2.7 million due to net income of $6.3 million and net stock related activities in connection with stock-based compensation and ESOP activity of $0.2 million. These increases to equity were partially offset by common dividends paid of $0.7 million and a decrease in accumulated other comprehensive income of $2.8 million due to decreased unrealized gains in the investment portfolio.

The Company’s common equity to assets ratio decreased to 9.34% at March 31, 2021 from 9.77% at December 31, 2020. The Company’s ratio of tangible common equity (“TCE”) to tangible assets decreased to 8.82% at March 31, 2021 from 9.22% at December 31, 2020 (see Non-GAAP reconciliation schedules). The decrease in the TCE ratio is due primarily to significant increases in cash and loans from COVID-19 government stimulus.

In April 2020, banking regulators issued an interim final rule that excluded U.S. SBA PPP loans pledged under the PPPLF from the calculation of the leverage ratio. The Bank did not have any PPPLF advances at March 31, 2021 and December 31, 2020. In addition, the interim final rule excluded U.S. SBA PPP loans from the calculation of risk-based capital ratios by assigning a zero percent risk weight. The Company remains well capitalized at March 31, 2021 with a Tier 1 capital to average assets (“leverage ratio”) of 9.70% at March 31, 2021 compared to 9.56% at December 31, 2020.

Asset Quality

COVID-19 Loan Programs

While the outbreak of COVID-19 adversely impacted a range of industries in the Company’s footprint, we have taken steps to protect the health and well-being of our employees and customers and to assist customers who have been impacted by the COVID-19 pandemic. The Coronavirus Aid, Relief and Economic Security (“CARES”) Act was signed into law on March 27, 2020. There have been additional clarifications to regulation and legislation since the original law was passed, including the recent legislation that authorized another round of federal government funding for U.S. SBA PPP loans in December 2020.

U.S. SBA PPP balances increased a net of $5.4 million during the first quarter of 2021 which resulted in 865 of loans with balances of $115.7 million at March 31, 2021. No credit issues are anticipated with U.S. SBA PPP loans as they are guaranteed by the SBA and the Bank’s allowance for loan loss does not include an allowance for U.S. SBA PPP loans. During the three months ended March 31, 2021, the Company originated $53.4 million or 456 of new U.S. SBA PPP loans under the recent round of authorized funding and processed forgiveness for $48.0 million or 447 of U.S. SBA PPP loans.

Beginning in April of 2020, the Company added COVID-19 payment deferral programs for impacted customers. The Company deferred either the full loan payment or the principal component of the loan payment for a period of between 90 and 180 days with most deferrals set to a six month period. As of March 31, 2021, $23.1 million or 1.5% of gross portfolio loans had deferral agreements, down $12.3 million from the $35.4 million or 2.4% of gross portfolio loans at December 31, 2020. All COVID-19 deferred loans were current prior to the crisis and will not be considered delinquent loans or troubled debt restructures (“TDRs”) upon completion of the modification agreements due to provisions in the CARES Act and regulations that permit U.S. financial institutions to temporarily suspend U.S. GAAP requirements to treat such loan modifications as TDRs.

Allowance for loan losses (“ALLL”) and provision for loan losses (“PLL”) and Non-Performing Assets

The Company’s allowance reflects the continued economic uncertainty from the COVID-19 pandemic. The ALLL increased in 2020 primarily due to the economic effects of the COVID-19 pandemic. The Company’s allowance methodology considers quantitative historical loss factors and qualitative factors to determine the estimated level of incurred losses in the Company’s loan portfolios. ALLL levels decreased to 1.21% of portfolio loans at March 31, 2021 compared to 1.29% at December 31, 2020. At and for the three months ended March 31, 2021, the Company’s ALLL decreased $1.2 million or 6.0% to $18.3 million at March 31, 2021 from $19.4 million at December 31, 2020. The decrease in the general allowance was primarily due to improvements in the qualitative factors of delinquency and risk classification rating, as well as slower loan growth partially offset by higher charge-offs in the first quarter.

The Company recorded a $295,000 PLL for the three months ended March 31, 2021 compared to $4.1 million for the three months ended March 31, 2020. Net charge-offs also increased for the comparable periods from a $19,000 recovery in the first quarter of 2020 to $1.5 million in net charge-offs in the first quarter of 2021. During the three months ended March 31, 2021, the Bank sold non-accrual and classified commercial real estate and residential mortgage loans with an amortized cost of $9.1 million, net of charge-offs of $1.4 million, and recognized a loss on the sale of $191,000. The Company’s sale of these impaired loans decreased the specific reserve, improved asset quality and improved several ALLL qualitative factors.

Management believes that loans included in the COVID-19 deferral program in 2020 and 2021 are more likely to default in the future and that the identification and resolution of problem credits could be delayed. In our evaluation of current and previously deferred loans, we considered the length of the deferral period, the type and amount of collateral and customer industries. Consistent with regulatory guidance, if new information during the deferral period indicates that there is evidence of default, the Bank may change the classification rating (e.g., change from passing credit to substandard) and accrual status (e.g., change from accrual to non-accrual status) as deemed appropriate. As of March 31, 2021 and December 31, 2020, there were $1.0 million and $3.4 million, respectively, of COVID-19 deferred loans deemed to be non-accrual and substandard based on reviews.

Management believes that the allowance is adequate at March 31, 2021.

During 2020, classified assets decreased $12.3 million. The sale of $9.1 million in impaired loans during the first quarter of 2021 was a continuation of management’s intent to expeditiously resolve non-performing or substandard credits that were not likely to become performing or passing credits in a reasonable timeframe. Classified assets decreased $6.2 million from $22.4 million at December 31, 2020 to $16.1 million at March 31, 2021. Management considers classified assets to be an important measure of asset quality. The Company’s risk rating process for classified loans is an important input into the Company’s allowance methodology. Risk ratings are expected to be an important indicator in assessing ongoing credit risks of COVID-19 deferred loans.

Non-accrual loans and OREO to total gross portfolio loans and OREO decreased 36 basis points from 1.42% at December 31, 2020 to 1.06% at March 31, 2021. Non-accrual loans, OREO and TDRs to total assets decreased 31 basis points from 1.08% at December 31, 2020 to 0.77% at March 31, 2021. 

Non-accrual loans decreased $4.6 million from $18.2 million at December 31, 2020 to $13.6 million at March 31, 2021. Non-accrual loans of $8.2 million (60%) were current with all payments of principal and interest with specific reserves of $42,000 at March 31, 2021. Delinquent non-accrual loans were $5.5 million (40%) with specific reserves of $742,000 at March 31, 2021.

The OREO balance decreased $780,000 from $3.1 million at December 31, 2020 to $2.3 million at March 31, 2021.

About The Community Financial Corporation – Headquartered in Waldorf, MD, The Community Financial Corporation is the bank holding company for Community Bank of the Chesapeake, a full-service commercial bank with assets of approximately $2.1 billion. Through its branch offices and commercial lending centers, Community Bank of the Chesapeake offers a broad range of financial products and services to individuals and businesses. The Company’s branches are located at its main office in Waldorf, Maryland, and branch offices in Bryans Road, Dunkirk, Leonardtown, La Plata, Charlotte Hall, Prince Frederick, Lusby and California, Maryland; and downtown Fredericksburg, Virginia. More information about Community Bank of the Chesapeake can be found at www.cbtc.com.

Use of non-GAAP Financial Measures – Statements included in this press release include non-GAAP financial measures and should be read along with the accompanying tables, which provide a reconciliation of non-GAAP financial measures to GAAP financial measures. The Company’s management uses these non-GAAP financial measures, and believes that non-GAAP financial measures provide additional useful information that allows readers to evaluate the ongoing performance of the Company. Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP.

Forward-looking Statements – This news release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements can generally be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Statements in this release that are not strictly historical are forward-looking and are based upon current expectations that may differ materially from actual results. These forward-looking statements include, without limitation, those relating to the Company’s and the Bank’s future growth and management’s outlook or expectations for revenue, assets, asset quality, profitability, business prospects, net interest margin, non-interest revenue, allowance for loan losses, the level of credit losses from lending, liquidity levels, capital levels, or other future financial or business performance strategies or expectations, and any statements of the plans and objectives of management for future operations products or services, including the expected benefits from, and/or the execution of integration plans relating to any acquisition we have undertaking or that we undertake in the future; plans and cost savings regarding branch closings or consolidation; any statement of expectation or belief; projections related to certain financial metrics; and any statement of assumptions underlying the foregoing. These forward-looking statements express management’s current expectations or forecasts of future events, results and conditions, and by their nature are subject to and involve risks and uncertainties that could cause actual results to differ materially from those anticipated by the statements made herein. Factors that might cause actual results to differ materially from those made in such statements include, but are not limited to: risks, uncertainties and other factors relating to the COVID-19 pandemic (including the length of time that the pandemic continues, the ability of states and local governments to successfully implement the lifting of restrictions on movement and the potential imposition of further restrictions on movement and travel in the future, the effect of the pandemic on the general economy and on the businesses of our borrowers and their ability to make payments on their obligations; the remedial actions and stimulus measures adopted by federal, state and local governments, and the inability of employees to work due to illness, quarantine, or government mandates); the synergies and other expected financial benefits from any acquisition that we have undertaken or may undertake in the future; may or may not be realized within the expected time frames; changes in the Company’s or the Bank’s strategy, costs or difficulties related to integration matters might be greater than expected; availability of and costs associated with obtaining adequate and timely sources of liquidity; the ability to maintain credit quality; general economic trends; changes in interest rates; loss of deposits and loan demand to other financial institutions; substantial changes in financial markets; changes in real estate value and the real estate market; regulatory changes; the impact of government shutdowns or sequestration; the possibility of unforeseen events affecting the industry generally; the uncertainties associated with newly developed or acquired operations; the outcome of pending or threatened litigation, or of matters before regulatory agencies, whether currently existing or commencing in the future; market disruptions and other effects of terrorist activities; and the matters described in “Item 1A Risk Factors” in the Company’s Annual Report on Form 10-K for the Year Ended December 31, 2020, and in its other Reports filed with the Securities and Exchange Commission (the “SEC”). The Company’s forward-looking statements may also be subject to other risks and uncertainties, including those that it may discuss elsewhere in this news release or in its filings with the SEC, accessible on the SEC’s Web site at www.sec.gov. The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events, except as required under the rules and regulations of the SEC.

Data is unaudited as of March 31, 2021. This selected information should be read in conjunction with the financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

CONTACTS:
William J. Pasenelli, Chief Executive Officer
Todd L. Capitani, Chief Financial Officer
888.745.2265

SUPPLEMENTAL QUARTERLY FINANCIAL DATA
CONSOLIDATED INCOME STATEMENT (UNAUDITED)

    Three Months Ended
(dollars in thousands)   March 31, 2021   December 31, 2020   September 30, 2020   June 30, 2020   March 31, 2020
Interest and Dividend Income                    
Loans, including fees   $ 16,592       $ 16,776       $ 16,176     $ 16,277     $ 16,502    
Interest and dividends on securities   1,064       1,091       1,269     1,341     1,469    
Interest on deposits with banks   22       46       38     20     68    
Total Interest and Dividend Income   17,678       17,913       17,483     17,638     18,039    
Interest Expense                    
Deposits   802       1,166       1,534     1,937     3,044    
Short-term borrowings               14     28     69    
Long-term debt   367       775       567     449     573    
Total Interest Expense   1,169       1,941        2,115      2,414      3,686     
Net Interest Income (“NII”)   16,509       15,972       15,368     15,224     14,353    
Provision for loan losses   295       600       2,500     3,500     4,100    
NII After Provision For Loan Losses   16,214       15,372       12,868     11,724     10,253    
Noninterest Income                    
Loan appraisal, credit, and misc. charges   198       76       49     35     14    
Gain on sale of assets               6            
Net gains on sale of investment securities   586       714       229     112     329    
Unrealized gain (losses) on equity securities   (85 )     (14 )         40     75    
Income from bank owned life insurance   214       220       222     220     219    
Service charges   1,187       960       839     709     982    
Referral fee income   451       414       321     1,143     502    
Loss on sale of loans   (191 )                      
Total Noninterest Income   2,360       2,370       1,666     2,259     2,121    
Noninterest Expense                    
Compensation and benefits   4,788       4,552       5,099     4,714     5,188    
OREO valuation allowance and expenses   181       897       421     1,100     782    
Sub Total   4,969       5,449       5,520     5,814     5,970    
Operating Expenses                    
Occupancy expense   761       806       734     736     734    
Advertising   79       145       129     130     121    
Data processing expense   936       829       990     924     928    
Professional fees   640       658       652     477     626    
Depreciation of premises and equipment   147       154       142     151     158    
Telephone communications   58       49       43     53     43    
Office supplies   29       28       31     30     31    
FDIC Insurance   252       260       249     260     170    
Core deposit intangible amortization   133       139       144     151     157    
Other   2,144       955       817     671     745    
Total Operating Expenses   5,179       4,023       3,931     3,583     3,713    
Total Noninterest Expense   10,148       9,472       9,451     9,397     9,683    
Income before income taxes   8,426       8,270       5,083     4,586     2,691    
Income tax expense (benefit)   2,127       2,131       1,284     1,136     (57 )  
Net Income   $ 6,299       $ 6,139       $ 3,799     $ 3,450     $ 2,748    

SUPPLEMENTAL QUARTERLY FINANCIAL DATA – Continued
CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(dollars in thousands, except per share amounts)   March 31, 2021   December 31, 2020   September 30, 2020   June 30, 2020   March 31, 2020
Assets                    
Cash and due from banks   $ 126,834       $ 56,887       $ 93,130       $ 103,914       $ 15,498    
Federal funds sold   43,614             69,431       29,456          
Interest-bearing deposits with banks   17,390       20,178       25,132       13,051       10,344    
Securities available for sale (“AFS”), at fair value   253,348       246,105       229,620       234,982       214,163    
Equity securities carried at fair value through income   4,787       4,855       4,851       4,831       4,768    
Non-marketable equity securities held in other financial institutions   207       207       209       209       209    
Federal Home Loan Bank (“FHLB”) stock – at cost   2,036       2,777       3,415       4,691       5,627    
Net U.S. Small Business Administration (“SBA”) Paycheck Protection (“PPP”) Loans   112,485       107,960       127,811       125,638          
Portfolio Loans Receivable net of allowance for loan losses of $18,256, $19,424, $18,829, $16,319, and $15,061   1,489,806       1,486,115       1,479,313       1,478,498       1,477,087    
Net Loans   1,602,291       1,594,075       1,607,124       1,604,136       1,477,087    
Goodwill   10,835       10,835       10,835       10,835       10,835    
Premises and equipment, net   20,540       20,271       20,671       20,972       21,305    
Premises and equipment held for sale   430       430       430       430       430    
Other real estate owned (“OREO”)   2,329       3,109       3,998       3,695       6,338    
Accrued interest receivable   7,337       8,717       8,975       6,773       5,077    
Investment in bank owned life insurance   38,275       38,061       37,841       37,619       37,399    
Core deposit intangible   1,394       1,527       1,666       1,810       1,961    
Net deferred tax assets   8,671       7,909       7,307       6,565       6,421    
Right of use assets – operating leases   6,391       7,831       8,005       8,132       8,257    
Other assets   2,822       2,665       4,797       1,655       902    
Total Assets   $ 2,149,531       $ 2,026,439       $ 2,137,437       $ 2,093,756       $ 1,826,621    
Liabilities and Stockholders’ Equity                    
Liabilities                    
Deposits                    
Non-interest-bearing deposits   $ 406,319       $ 362,079       $ 360,839       $ 356,196       $ 254,114    
Interest-bearing deposits   1,461,577       1,383,523       1,418,767       1,314,168       1,258,475    
Total deposits   1,867,896       1,745,602       1,779,606       1,670,364       1,512,589    
Short-term borrowings                     5,000       27,000    
Long-term debt   27,285       27,302       42,319       67,336       67,353    
Paycheck Protection Program Liquidity Facility (“PPPLF”) Advance               85,893       126,801          
Guaranteed preferred beneficial interest in junior subordinated debentures (“TRUPs”)   12,000       12,000       12,000       12,000       12,000    
Subordinated notes – 4.75%   19,468       19,526                      
Lease liabilities – operating leases   6,614       8,088       8,193       8,296       8,397    
Accrued expenses and other liabilities   15,509       15,908       16,576       14,517       14,015    
Total Liabilities   1,948,772       1,828,426       1,944,587       1,904,314       1,641,354    
Stockholders’ Equity                    
Common stock   59       59       59       59       59    
Additional paid in capital   96,181       95,965       95,799       95,687       95,581    
Retained earnings   103,294       97,944       92,814       89,781       87,070    
Accumulated other comprehensive income   1,684       4,504       4,780       4,517       3,159    
Unearned ESOP shares   (459 )     (459 )     (602 )     (602 )     (602 )  
Total Stockholders’ Equity   200,759       198,013       192,850       189,442       185,267    
Total Liabilities and Stockholders’ Equity   $ 2,149,531       $ 2,026,439       $ 2,137,437       $ 2,093,756       $ 1,826,621    
Common shares issued and outstanding   5,897,685       5,903,613       5,911,940       5,911,715       5,910,064    

SUPPLEMENTAL QUARTERLY FINANCIAL DATA – Continued
SELECTED FINANCIAL INFORMATION AND RATIOS (UNAUDITED)

    Three Months Ended
(dollars in thousands, except per share amounts)   March 31, 2021   December 31, 2020   September 30, 2020   June 30, 2020   March 31, 2020
KEY OPERATING RATIOS                    
Return on average assets (“ROAA”)   1.22 %   1.18 %   0.73 %   0.69 %   0.61 %
Pre-tax Pre-Provision ROAA**   1.68     1.71     1.46     1.62     1.51  
Return on average common equity (“ROACE”)   12.53     12.51     7.86     7.27     6.00  
Pre-tax Pre-Provision ROACE**   17.34     18.08     15.69     17.03     14.82  
Return on Average Tangible Common Equity (“ROATCE”)**   13.56     13.58     8.65     8.05     6.69  
Average total equity to average total assets   9.71     9.46     9.33     9.52     10.20  
Interest rate spread   3.43     3.29     3.15     3.21     3.21  
Net interest margin   3.50     3.40     3.27     3.34     3.43  
Cost of funds   0.25     0.42     0.46     0.54     0.93  
Cost of deposits   0.18     0.26     0.37     0.48     0.82  
Cost of debt   2.50     3.45     1.16     1.06     2.61  
Efficiency ratio   53.78     51.64     55.48     53.75     58.78  
Non-interest expense to average assets   1.96     1.83     1.82     1.88     2.15  
Net operating expense to average assets   1.50     1.37     1.50     1.43     1.68  
Avg. int-earning assets to avg. int-bearing liabilities   128.84     126.18     125.40     125.51     124.44  
Net charge-offs to average portfolio loans   0.40     0.00     0.00     0.61     0.00  
COMMON SHARE DATA                    
Basic net income per common share   $ 1.07     $ 1.04     $ 0.64     $ 0.59     $ 0.47  
Diluted net income per common share   1.07     1.04     0.64     0.59     0.47  
Cash dividends paid per common share   0.125     0.125     0.125     0.13     0.13  
Basic – weighted average common shares outstanding   5,888,250     5,892,751     5,895,074     5,894,009     5,886,981  
Diluted – weighted average common shares outstanding   5,897,698     5,894,494     5,895,074     5,894,009     5,886,981  
ASSET QUALITY                    
Total assets   $ 2,149,531     $ 2,026,439     $ 2,137,437     $ 2,093,756     $ 1,826,621  
Gross portfolio loans (1)   1,507,183     1,504,275     1,496,532     1,492,745     1,490,089  
Classified assets   16,145     22,358     24,600     25,115     33,489  
Allowance for loan losses   18,256     19,424     18,829     16,319     15,061  
Past due loans – 31 to 89 days   1,373     179     838     5,843     7,921  
Past due loans >=90 days   5,453     11,965     17,230     20,072     12,877  
Total past due loans (2) (3)   6,826     12,144     18,068     25,915     20,798  
                     
Non-accrual loans (4)   13,623     18,222     20,148     22,896     16,349  
Accruing troubled debt restructures (“TDRs”)   504     572     573     593     641  
Other real estate owned (“OREO”)   2,329     3,109     3,998     3,695     6,338  
Non-accrual loans, OREO and TDRs   $ 16,456     $ 21,903     $ 24,719     $ 27,184     $ 23,328  

** Non-GAAP financial measure. See reconciliation of GAAP and NON-GAAP measures.
____________________________________

(1) Portfolio loans include all loan portfolios except the U.S. SBA PPP loan portfolio. Asset quality ratios for loans exclude U.S. SBA PPP loans.

(2) Delinquency excludes Purchase Credit Impaired (“PCI”) loans.

(3) There were no COVID-19 deferred loans in process as of April 23, 2021 that were reported as delinquent as of March 31, 2021.

(4) Non-accrual loans include all loans that are 90 days or more delinquent and loans that are non-accrual due to the operating results or cash flows of a customer. Non-accrual loans can include loans that are current with all loan payments. At March 31, 2021 and December 31, 2020, the Company had current non-accrual loans of $8.2 million and $6.3 million, respectively.

SUPPLEMENTAL QUARTERLY FINANCIAL DATA – Continued
SELECTED FINANCIAL INFORMATION AND RATIOS (UNAUDITED)

    Three Months Ended
(dollars in thousands, except per share amounts)   March 31, 2021   December 31, 2020   September 30, 2020   June 30, 2020   March 31, 2020
ASSET QUALITY RATIOS (1)                    
Classified assets to total assets   0.75 %   1.10 %   1.15 %   1.20 %   1.83 %
Classified assets to risk-based capital   6.81     9.61     11.89     12.49     17.00  
Allowance for loan losses to total loans   1.21     1.29     1.26     1.09     1.01  
Allowance for loan losses to non-accrual loans   134.01     106.60     93.45     71.27     92.12  
Past due loans – 31 to 89 days to total loans   0.09     0.01     0.06     0.39     0.53  
Past due loans >=90 days to total loans   0.36     0.80     1.15     1.34     0.86  
Total past due (delinquency) to total loans   0.45     0.81     1.21     1.74     1.40  
Non-accrual loans to total loans   0.90     1.21     1.35     1.53     1.10  
Non-accrual loans and TDRs to total loans   0.94     1.25     1.38     1.57     1.14  
Non-accrual loans and OREO to total assets   0.74     1.05     1.13     1.27     1.24  
Non-accrual loans and OREO to total loans and OREO   1.06     1.42     1.61     1.78     1.52  
Non-accrual loans, OREO and TDRs to total assets   0.77     1.08     1.16     1.30     1.28  
COMMON SHARE DATA                    
Book value per common share   $ 34.04     $ 33.54     $ 32.62     $ 32.05     $ 31.35  
Tangible book value per common share**   31.97     31.45     30.51     29.91     29.18  
Common shares outstanding at end of period   5,897,685     5,903,613     5,911,940     5,911,715     5,910,064  
OTHER DATA                    
Full-time equivalent employees     192       189       189       194       196  
Branches     11       12       12       12       12  
Loan Production Offices     4       4       4       4       4  
CAPITAL RATIOS                    
Tier 1 capital to average assets   9.70 %   9.56 %   9.73 %   9.76 %   10.20 %
Tier 1 common capital to risk-weighted assets   11.72     11.47     11.11     11.12     11.04  
Tier 1 capital to risk-weighted assets   12.47     12.23     11.87     11.89     11.82  
Total risk-based capital to risk-weighted assets   14.83     14.69     13.06     12.94     12.80  
Common equity to assets   9.34     9.77     9.02     9.05     10.14  
Tangible common equity to tangible assets **   8.82     9.22     8.49     8.50     9.51  

** Non-GAAP financial measure. See reconciliation of GAAP and NON-GAAP measures.
____________________________________

(1) Asset quality ratios are calculated using total portfolio loans. Portfolio loans include all loan portfolios except the U.S. SBA PPP loan portfolio.

RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)

Reconciliation of US GAAP total assets, common equity, common equity to assets and book value to Non-GAAP tangible assets, tangible common equity, tangible common equity to tangible assets and tangible book value.

This press release, including the accompanying financial statement tables, contains financial information determined by methods other than in accordance with generally accepted accounting principles, or GAAP. This financial information includes certain performance measures, which exclude intangible assets. These non-GAAP measures are included because the Company believes they may provide useful supplemental information for evaluating the underlying performance trends of the Company.

(dollars in thousands, except per share amounts)   March 31, 2021   December 31, 2020   September 30, 2020   June 30, 2020   March 31, 2020
Total assets   $ 2,149,531     $ 2,026,439     $ 2,137,437     $ 2,093,756     $ 1,826,621  
Less: intangible assets                    
Goodwill   10,835     10,835     10,835     10,835     10,835  
Core deposit intangible   1,394     1,527     1,666     1,810     1,961  
Total intangible assets   12,229     12,362     12,501     12,645     12,796  
Tangible assets   $ 2,137,302     $ 2,014,077     $ 2,124,936     $ 2,081,111     $ 1,813,825  
                     
Total common equity   $ 200,759     $ 198,013     $ 192,850     $ 189,442     $ 185,267  
Less: intangible assets   12,229     12,362     12,501     12,645     12,796  
Tangible common equity   $ 188,530     $ 185,651     $ 180,349     $ 176,797     $ 172,471  
                     
Common shares outstanding at end of period   5,897,685     5,903,613     5,911,940     5,911,715     5,910,064  
                     
Common equity to assets   9.34 %   9.77 %   9.02 %   9.05 %   10.14 %
Tangible common equity to tangible assets   8.82 %   9.22 %   8.49 %   8.50 %   9.51 %
                     
Common book value per share   $ 34.04     $ 33.54     $ 32.62     $ 32.05     $ 31.35  
Tangible common book value per share   $ 31.97     $ 31.45     $ 30.51     $ 29.91     $ 29.18  

RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)

Pre-Tax Pre-Provision (“PTPP”) Income, PTPP Return on Average Assets (“ROAA”), PTPP Return on Average Common Equity (“ROACE”), and Return on Average Tangible Common Equity (“ROATCE”)

We believe that pre-tax pre-provision income, which reflects our profitability before income taxes and loan loss provisions, allows investors to better assess our operating income and expenses in relation to our core operating revenue by removing the volatility that is associated with credit provisions and different state income tax rates for comparable institutions. We also believe that during a crisis such as the COVID-19 pandemic, this information is useful as the impact of the pandemic on the loan loss provisions of various institutions will likely vary based on the geography of the communities served by a particular institution.

    Three Months Ended
(dollars in thousands)   March 31, 2021   December 31, 2020   September 30, 2020   June 30, 2020   March 31, 2020
Net income (as reported)   $ 6,299     $ 6,139     $ 3,799     $ 3,450     $ 2,748  
Provision for loan losses   295     600     2,500     3,500     4,100  
Income tax expenses   2,127     2,131     1,284     1,136     (57 )
Non-GAAP PTPP income   $ 8,721     $ 8,870     $ 7,583     $ 8,086     $ 6,791  
                     
GAAP ROAA   1.22 %   1.18 %   0.73 %   0.69 %   0.61 %
Pre-tax Pre-Provision ROAA   1.68 %   1.71 %   1.46 %   1.62 %   1.51 %
                     
GAAP ROACE   12.53 %   12.51 %   7.86 %   7.27 %   6.00 %
Pre-tax Pre-Provision ROACE   17.34 %   18.08 %   15.69 %   17.03 %   14.82 %
                     
ROATCE   13.56 %   13.58 %   8.65 %   8.05 %   6.69 %
                     
Average assets   $ 2,070,575     $ 2,074,707     $ 2,071,487     $ 1,995,552     $ 1,797,426  
Average equity   $ 201,124     $ 196,279     $ 193,351     $ 189,890     $ 183,272  
Average tangible common equity   $ 188,808     $ 183,827     $ 180,755     $ 177,146     $ 170,373  

AVERAGE CONSOLIDATED BALANCE SHEETS AND NET INTEREST INCOME (UNAUDITED)

    For the Three Months Ended March 31,   For the Three Months Ended
    2021   2020   March 31, 2021   December 31, 2020
(dollars in thousands)   Average Balance   Interest   Average Yield/Cost   Average Balance   Interest   Average Yield/Cost   Average Balance   Interest   Average Yield/Cost   Average Balance   Interest   Average Yield/Cost
Assets                                                
Interest-earning assets:                                                
Commercial real estate   $ 1,059,803       $ 10,696     4.04 %   $ 955,035       $ 11,245     4.71 %   $ 1,059,803       $ 10,696     4.04 %   $ 1,027,831       $ 10,833     4.22 %
Residential first mortgages   124,984       914     2.93 %   170,994       1,512     3.54 %   124,984       914     2.93 %   140,303       1,132     3.23 %
Residential rentals   139,220       1,445     4.15 %   131,920       1,353     4.10 %   139,220       1,445     4.15 %   134,564       1,468     4.36 %
Construction and land development   36,091       402     4.46 %   37,106       467     5.03 %   36,091       402     4.46 %   35,910       435     4.85 %
Home equity and second mortgages   29,272       248     3.39 %   36,028       453     5.03 %   29,272       248     3.39 %   30,045       268     3.57 %
Commercial and equipment loans   105,284       1,070     4.07 %   126,535       1,459     4.61 %   105,284       1,070     4.07 %   107,245       1,320     4.92 %
U.S. SBA PPP loans   116,003       1,802     6.21 %             0.00 %   116,003       1,802     6.21 %   120,473       1,308     4.34 %
Consumer loans   1,320       15     4.55 %   1,118       13     4.65 %   1,320       15     4.55 %   1,058       12     4.54 %
Allowance for loan losses   (19,614 )         0.00 %   (11,203 )         0.00 %   (19,614 )         0.00 %   (19,138 )         0.00 %
Loan portfolio (1)   $ 1,592,363       $ 16,592     4.17 %   $ 1,447,533       $ 16,502     4.56 %   $ 1,592,363       $ 16,592     4.17 %   $ 1,578,291       $ 16,776     4.25 %
Taxable investment securities   229,810       951     1.66 %   215,500       1,482     2.75 %   229,810       951     1.66 %   211,101       978     1.85 %
Nontaxable investment securities   20,841       114     2.19 %             0.00 %   20,841       114     2.19 %   20,378       113     2.22 %
Interest-bearing deposits in other banks   25,064       14     0.22 %   6,547       39     2.38 %   25,064       14     0.22 %   28,970       23     0.32 %
Federal funds sold   18,721       7     0.15 %   4,028       16     1.59 %   18,721       7     0.15 %   42,841       23     0.21 %
Total Interest-Earning Assets   1,886,799       17,678     3.75 %   1,673,608       18,039     4.31 %   1,886,799       17,678     3.75 %   1,881,581       17,913     3.81 %
Cash and cash equivalents   82,669               24,108               82,669               88,963            
Goodwill   10,835               10,835               10,835               10,835            
Core deposit intangible   1,481               2,064               1,481               1,617            
Other assets   88,791               86,811               88,791               91,711            
Total Assets   $ 2,070,575               $ 1,797,426               $ 2,070,575               $ 2,074,707            
                                                 
Liabilities and Stockholders’ Equity                                                
Noninterest-bearing demand deposits   $ 381,059       $     0.00 %   $ 246,304       $     0.00 %   $ 381,059       $     0.00 %   $ 366,726       $     0.00 %
Interest-bearing deposits                                                
Savings   101,782       13     0.05 %   71,086       18     0.10 %   101,782       13     0.05 %   96,529       17     0.07 %
Interest-bearing demand and money market accounts   952,554       195     0.08 %   784,758       1,324     0.67 %   952,554       195     0.08 %   948,449       268     0.11 %
Certificates of deposit   351,365       594     0.68 %   390,528       1,702     1.74 %   351,365       594     0.68 %   356,261       881     0.99 %
Total interest-bearing deposits   1,405,701       802     0.23 %   1,246,372       3,044     0.98 %   1,405,701       802     0.23 %   1,401,239       1,166     0.33 %
Total Deposits   1,786,760       802     0.18 %   1,492,676       3,044     0.82 %   1,786,760       802     0.18 %   1,767,965       1,166     0.26 %
Long-term debt   27,291       41     0.60 %   55,095       260     1.89 %   27,291       41     0.60 %   28,341       457     6.45 %
Short-term debt             0.00 %   16,533       69     1.67 %             0.00 %             0.00 %
PPPLF Advance             0.00 %             0.00 %             0.00 %   32,677       29     0.35 %
Subordinated Notes   19,490       251     5.15 %   14,912       184     4.94 %   19,490       251     5.15 %   16,888       211     5.00 %
Guaranteed preferred beneficial interest in junior subordinated debentures   12,000       75     2.50 %   12,000       129     4.30 %   12,000       75     2.50 %   12,000       78     2.60 %
Total Debt   58,781       367     2.50 %   98,540       642     2.61 %   58,781       367     2.50 %   89,906       775     3.45 %
Interest-Bearing Liabilities   1,464,482       1,169     0.32 %   1,344,912       3,686     1.10 %   1,464,482       1,169     0.32 %   1,491,145       1,941     0.52 %
Total Funds   1,845,541       1,169     0.25 %   1,591,216       3,686     0.93 %   1,845,541       1,169     0.25 %   1,857,871       1,941     0.42 %
Other liabilities   23,910               22,938               23,910               20,557            
Stockholders’ equity   201,124               183,272               201,124               196,279            
Total Liabilities and Stockholders’ Equity   $ 2,070,575               $ 1,797,426               $ 2,070,575               $ 2,074,707            
                                                 
Net interest income       $ 16,509             $ 14,353             $ 16,509             $ 15,972      
                                                 
Interest rate spread           3.43 %           3.22 %           3.43 %           3.29 %
Net yield on interest-earning assets           3.50 %           3.43 %           3.50 %           3.40 %
Average interest-earning assets to average interest-bearing liabilities           128.84 %           124.44 %           128.84 %           126.18 %
Average loans to average deposits           89.12 %           96.98 %           89.12 %           89.27 %
Average transaction deposits to total average deposits **           80.34 %           73.84 %           80.34 %           79.85 %
                                                 
Cost of funds           0.25 %           0.93 %           0.25 %           0.42 %
Cost of deposits           0.18 %           0.82 %           0.18 %           0.26 %
Cost of debt           2.50 %           2.61 %           2.50 %           3.45 %

(1) Loan average balance includes non-accrual loans. There are no tax equivalency adjustments. There was $90,000, $222,000 and $96,000 of accretion interest for the three months ended March 31, 2021 and 2020, and December 31, 2020, respectively.

** Transaction deposits exclude time deposits.

SUMMARY OF LOAN PORTFOLIO (UNAUDITED)
(dollars in thousands)

BY LOAN TYPE   March 31, 2021   %   December 31, 2020   %   September 30, 2020   %   June 30, 2020   %   March 31, 2020   %
Portfolio Type:                                        
Commercial real estate   $ 1,081,111       71.74 %   $ 1,049,147       69.75 %   $ 1,021,987       68.29 %   $ 996,111       66.73 %   $ 977,678       65.61 %
Residential first mortgages   115,803       7.68 %   133,779       8.89 %   147,756       9.87 %   165,670       11.10 %   170,795       11.46 %
Residential rentals   137,522       9.12 %   139,059       9.24 %   137,950       9.22 %   132,590       8.88 %   133,016       8.93 %
Construction and land development   38,446       2.55 %   37,520       2.49 %   36,061       2.41 %   37,580       2.52 %   38,627       2.59 %
Home equity and second mortgages   29,363       1.95 %   29,129       1.94 %   31,427       2.10 %   33,873       2.27 %   35,937       2.41 %
Commercial loans   42,689       2.83 %   52,921       3.52 %   58,894       3.94 %   63,249       4.24 %   70,971       4.76 %
Consumer loans   1,415       0.09 %   1,027       0.07 %   1,081       0.07 %   1,117       0.07 %   1,134       0.08 %
Commercial equipment   60,834       4.04 %   61,693       4.10 %   61,376       4.10 %   62,555       4.19 %   61,931       4.16 %
Gross portfolio loans   1,507,183       100.00 %   1,504,275       100.00 %   1,496,532       100.00 %   1,492,745       100.00 %   1,490,089       100.00 %
Net deferred costs   879       0.08 %   1,264       0.08 %   1,610       0.11 %   2,072       0.14 %   2,059       0.14 %
Allowance for loan losses   (18,256 )     (1.21 )%   (19,424 )     (1.29 )%   (18,829 )     (1.26 )%   (16,319 )     (1.09 )%   (15,061 )     (1.01 )%
    (17,377 )         (18,160 )         (17,219 )         (14,247 )         (13,002 )      
Net portfolio loans   $ 1,489,806           $ 1,486,115           $ 1,479,313           $ 1,478,498           $ 1,477,087        
                                         
U.S. SBA PPP loans   $ 115,700           $ 110,320           $ 131,088           $ 129,384           $        
Net deferred fees   (3,215 )         (2,360 )         (3,277 )         (3,746 )                
Net U.S. SBA PPP loans   $ 112,485           $ 107,960           $ 127,811           $ 125,638           $        
                                         
Total net loans   $ 1,602,291           $ 1,594,075           $ 1,607,124           $ 1,604,136           $ 1,477,087        
                                         
Gross loans   $ 1,622,883           $ 1,614,595           $ 1,627,620           $ 1,622,129           $ 1,490,089        

END OF PERIOD CONTRACTUAL RATES (UNAUDITED)

The following table is based on contractual interest rates and does not include the amortization of deferred costs and fees or assumptions regarding non-accrual interest: 

    March 31, 2021   December 31, 2020   September 30, 2020   June 30, 2020   March 31, 2020
(dollars in thousands)   EOP Contractual
Interest rate
  EOP Contractual
Interest rate
  EOP Contractual
Interest rate
  EOP Contractual
Interest rate
  EOP Contractual
Interest rate
Commercial real estate   4.02 %   4.11 %   4.20 %   4.32 %   4.52 %
Residential first mortgages   3.87 %   3.93 %   3.93 %   3.93 %   3.93 %
Residential rentals   4.20 %   4.26 %   4.30 %   4.45 %   4.69 %
Construction and land development   4.32 %   4.28 %   4.40 %   4.46 %   5.02 %
Home equity and second mortgages   3.52 %   3.54 %   3.56 %   3.56 %   4.89 %
Commercial loans   4.63 %   4.56 %   4.51 %   4.53 %   4.92 %
Consumer loans   5.75 %   5.99 %   5.94 %   6.05 %   6.17 %
Commercial equipment   4.40 %   4.42 %   4.42 %   4.44 %   4.46 %
U.S. SBA PPP loans   1.00 %   1.00 %   1.00 %   1.00 %   0.00 %
Total Loans   3.84 %   3.92 %   3.94 %   4.03 %   4.51 %
                     
Yields without U.S. SBA PPP Loans   4.06 %   4.13 %   4.20 %   4.29 %   0.00 %

ALLOWANCE FOR LOAN LOSSES (UNAUDITED)

(dollars in thousands)   For the Three Months Ended
  March 31, 2021   December 31, 2020   September 30, 2020   June 30, 2020   March 31, 2020
Beginning of period   $ 19,424     $ 18,829     $ 16,319     $ 15,061     $ 10,942  
                     
Charge-offs   (1,485 )   (30 )   (65 )   (2,262 )    
Recoveries   22     25     75     20     19  
Net charge-offs   (1,463 )   (5 )   10     (2,242 )   19  
                     
Provision for loan losses   295     600     2,500     3,500     4,100  
End of period   $ 18,256     $ 19,424     $ 18,829     $ 16,319     $ 15,061  
                     
Net charge-offs to average portfolio loans (annualized)1   (0.40 )%   %   %   (0.61 )%   0.01 %
                     
Breakdown of general and specific allowance as a percentage of gross portfolio loans1                
General allowance   $ 17,365     $ 18,068     $ 18,319     $ 16,215     $ 13,412  
Specific allowance   891     1,356     510     104     1,649  
    $ 18,256     $ 19,424     $ 18,829     $ 16,319     $ 15,061  
                     
General allowance   1.15 %   1.20 %   1.22 %   1.09 %     0.90 %
Specific allowance   0.06 %   0.09 %   0.03 %   0.01 %     0.11 %
Allowance to gross portfolio loans   1.21 %   1.29 %   1.26 %   1.09 %   1.01 %
                     
Allowance to non-acquired gross loans   1.26 %   1.35 %   1.31 %   1.14 %   1.06 %
                     
Allowance+ Non-PCI FV Mark   $ 18,939     $ 20,174     $ 19,643     $ 17,208 %   $ 16,096  
Allowance+ Non-PCI FV Mark to gross portfolio loans   1.26 %   1.34 %   1.31 %   1.15 %   1.08 %

_______________________________
1 Portfolio loans include all loan portfolios except the U.S. SBA PPP loan portfolio

Below are several schedules that provide information on the COVID-19 deferred loans. The schedules summarize the COVID-19 loan modifications by loan portfolio, maturity or next payment due dates and the Banks’s industry classification using the North American Industry Classification System (“NAICS”). The NAICS is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy.

    (UNAUDITED)
COVID-19 Deferred Loans   March 31, 2021   Accrual Loans   Non-Accrual Loans
(dollars in thousands)   Loan Balances   % of Deferred
Loans
  % of Gross Portfolio
Loans
  Loan Balances   Number of Loans   Loan Balances   Number of Loans
Commercial real estate   $ 17,970     77.71 %   1.19 %   $ 16,993     5   $ 977     1  
Residential first mortgages   1,402     6.06 %   0.09 %   1,402     3        
Commercial equipment   3,754     16.23 %   0.25 %   3,754     15        
Total   $ 23,126     100.00 %   1.53 %   $ 22,149     23   $ 977     1  
COVID-19 Deferred Loans – Scheduled Month off Deferral   (UNAUDITED)
(dollars in thousands)   Loan Balances   %   Number of Loans
April-21   $ 5,305     22.94 %   5
May-21   9,736     42.10 %   4
June-21   4,580     19.80 %   4
December-21   3,505     15.16 %   11
Total   $ 23,126     100.00 %   24
COVID-19 Deferred Loans by NAICS Industry   (UNAUDITED)
(dollars in thousands)   March 31, 2021   Number of Loans
Real Estate Rental and Leasing   $ 5,257     1
Accommodation and Food Services   11,599     4
Arts, Entertainment, and Recreation   977     1
Transportation and Warehousing   3,505     11
Retail Trade   386     4
Other Industries, Residential Mortgages and Consumer **   1,402     3
Total   $ 23,126     24
** No NAICS code has been assigned.        

CLASSIFIED AND SPECIAL MENTION ASSETS (UNAUDITED)

The following is a breakdown of the Company’s classified and special mention assets at March 31, 2021 and December 31, 2020, 2019, 2018, and 2017, respectively: 

    As of
(dollars in thousands)   3/31/2021   12/31/2020   12/31/2019   12/31/2018   12/31/2017
Classified loans                    
Substandard   $ 13,816     $ 19,249     $ 26,863     $ 32,226     $ 40,306  
Doubtful                    
Total classified loans   13,816     19,249     26,863     32,226     40,306  
Special mention loans   7,769     7,672             96  
Total classified and special mention loans   $ 21,585     $ 26,921     $ 26,863     $ 32,226     $ 40,402  
                     
Classified loans   $ 13,816     $ 19,249     $ 26,863     $ 32,226     $ 40,306  
Classified securities               482     651  
Other real estate owned   2,329     3,109     7,773     8,111     9,341  
Total classified assets   $ 16,145     $ 22,358     $ 34,636     $ 40,819     $ 50,298  
                     
Total classified assets as a percentage of total assets   0.75 %   1.10 %   1.93 %   2.42 %   3.58 %
Total classified assets as a percentage of Risk Based Capital   6.81 %   9.61 %   16.21 %   21.54 %   32.10 %

SUMMARY OF DEPOSITS (UNAUDITED)

    March 31, 2021   December 31, 2020   September 30, 2020   June 30, 2020   March 31, 2020
(dollars in thousands)   Balance   %   Balance   %   Balance   %   Balance   %   Balance   %
Noninterest-bearing demand   $ 406,319     21.75 %   $ 362,079     20.74 %   $ 360,839     20.28 %   $ 356,196     21.32 %   $ 254,114     16.80 %
Interest-bearing:                                        
Demand   651,639     34.89 %   590,159     33.81 %   635,176     35.69 %   547,639     32.79 %   517,069     34.19 %
Money market deposits   355,680     19.04 %   340,725     19.52 %   329,617     18.52 %   314,781     18.85 %   281,656     18.62 %
Savings   105,590     5.65 %   98,783     5.66 %   90,514     5.09 %   85,257     5.10 %   73,874     4.88 %
Certificates of deposit   348,668     18.67 %   353,856     20.27 %   363,460     20.42 %   366,491     21.94 %   385,876     25.51 %
Total interest-bearing   1,461,577     78.25 %   1,383,523     79.26 %   1,418,767     79.72 %   1,314,168     78.68 %   1,258,475     83.20 %
Total Deposits   $ 1,867,896     100.00 %   $ 1,745,602     100.00 %   $ 1,779,606     100.00 %   $ 1,670,364     100.00 %   $ 1,512,589     100.00 %
                                         
Transaction accounts   $ 1,519,228     81.33 %   $ 1,391,746     79.73 %   $ 1,416,146     79.58 %   $ 1,303,873     78.06 %   $ 1,126,713     74.49 %

 

ROOT – Kessler Topaz Meltzer & Check, LLP Announces a Securities Fraud Class Action Lawsuit Filed Against Root, Inc. (ROOT)

Radnor, Pennsylvania–(Newsfile Corp. – April 23, 2021) –  The law firm of Kessler Topaz Meltzer & Check, LLP reminds investors of Root, Inc. (NASDAQ: ROOT) (“Root”) that a securities fraud class action lawsuit has been filed on behalf of those who purchased or acquired: (a) Root securities between October 28, 2020 and March 8, 2021, both dates inclusive (the “Class Period”); and/or (b) Root Class A common stock issued in connection with Root’s initial public offering conducted on or about October 28, 2020 (the “IPO”).

Shareholder Deadline Reminder: Investors who purchased or acquired Root securities during the Class Period may, no later than May 18, 2021, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; toll free at (844) 887-9500; via e-mail at info@ktmc.com; or click https://www.ktmc.com/root-inc-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=root.

Root provides insurance products and services in the United States. Root has historically focused on auto insurance and operates a direct-to-consumer model that serves customers primarily through mobile applications, as well as through Root’s website. Leading up to and following the IPO, Root described itself as an innovator in the personal insurance space with a new data- and technology-driven business model that was ready to disrupt traditional insurance markets and capture disproportionate market share, in part because of Root’s telematics-driven approach to insurance-i.e., the collection and transmission of vehicle-use data through devices.

On October 5, 2020, Root filed a registration statement on a Form S-1 with the Securities and Exchange Commission (“SEC”) in connection with the IPO, which, after several amendments, was declared effective on October 27, 2020 (the “Registration Statement”). On October 28, 2020, Root conducted the IPO, selling 26.8 million shares of its Class A common stock to the public at $27.00 per share for total approximate proceeds of $724.43 million. On October 29, 2020, Root filed a prospectus on a Form 424B4 with the SEC in connection with the IPO, which incorporated and formed part of the Registration Statement (the “Prospectus” and, together with the Registration Statement, the “Offering Documents”). Throughout the Class Period, the defendants misrepresented Root’s cash flow needs and auto-insurance business prospects.

The truth about Root’s cash flow needs and auto-insurance business prospects was revealed on March 9, 2021, when Bank of America Securities analyst Joshua Shanker (“Shanker”) initiated coverage of Root with an “Underperform” rating on the premise that Root is unlikely to be cash flow positive until 2027, finding that Root “will require not insignificant cash infusions from the capital markets to bridge its cash flow needs.” Shanker also noted that insurers Progressive, Allstate, and Berkshire Hathaway’s Geico would continue to impede Root’s profitability, with Progressive and Allstate having a “sizable advantage over Root in terms of amount of [telematics] data as well as engagement with the data” used to price their auto insurance.

Following this news, Root’s stock price fell $0.18 per share, or 1.46%, to close at $12.17 per share on March 9, 2021, representing a total decline of 54.93% from the offering price.

The complaint alleges that the Offering Documents and the defendants made false and/or misleading statements and/or failed to disclose that: (i) Root would foreseeably fail to generate positive cash flow for at least several years following the IPO; (ii) accordingly, Root would foreseeably require significant cash infusions to meet its cash flow needs; (iii) notwithstanding the defendants’ touting of Root’s purportedly unique, data-driven advantages, several of Root’s established industry peers in fact possessed significant competitive advantages over Root with respect to, inter alia, telematics data and data engagement; and (iv) as a result, the Offering Documents and the defendants’ public statements throughout the Class Period were materially false and/or misleading and failed to state information required to be stated therein.

Root investors may, no later than May 18, 2021, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.

Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.

CONTACT:

Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (toll free)
info@ktmc.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/81620

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JNJ – Johnson & Johnson Single-Shot COVID-19 Vaccinations to Resume in the U.S. for All Adults Aged 18 and Older Following CDC and FDA Decision

NEW BRUNSWICK, N.J., April 23, 2021 /PRNewswire/ — Johnson & Johnson (NYSE: JNJ) (the Company) today announced that vaccinations with the Company’s COVID-19 single-shot vaccine will resume for all adults aged 18 years and older in the U.S., under Emergency Use Authorization (EUA), following a decision from the United States Centers for Disease Control (CDC) and Food and Drug Administration (FDA).

The decision was based on a recommendation from the U.S. CDC Advisory Committee on Immunization Practices (ACIP), which followed a rigorous evaluation of data relating to a very rare adverse event involving blood clots in combination with low platelet counts (thrombosis with thrombocytopenia) observed within approximately one to two weeks following vaccination.

“As the global pandemic continues to devastate communities around the world, we believe a single-shot, easily transportable COVID-19 vaccine with demonstrated protection against multiple variants can help protect the health and safety of people everywhere. We will collaborate with health authorities around the world to educate healthcare professionals and the public to ensure this very rare event can be identified early and treated effectively,” said Paul Stoffels, Chief Scientific Officer of Johnson & Johnson.

Johnson & Johnson has updated the EUA Fact Sheets for Healthcare Providers Administering Vaccine (Vaccination Providers), and Recipients and Caregivers for the Company’s COVID-19 vaccine, to include information about the diagnosis and treatment of thrombosis with thrombocytopenia. The revised EUA fact sheets is available at: www.janssencovid19vaccine.com.  

The CDC, FDA and American Society of Hematology have made information available about the proper recognition and management of this medical condition, and the unique treatment required for this type of blood clot. The health authorities advise that people who have received our COVID-19 vaccine and develop severe headache, chest pain, swelling in the leg, abdominal pain, tiny blood spots under the skin or excessive bruising within two weeks after vaccination should immediately contact their health care provider.

The Company continues to work with other healthcare authorities and regulators around the world to ensure this information is included in product labels for the Company’s COVID-19 vaccine. On April 20, the European Medicines Agency’s (EMA) Pharmacovigilance Risk Assessment Committee (PRAC) also issued a recommendation, confirming the overall benefit-risk profile of the Company’s COVID-19 vaccine remains positive.

Johnson & Johnson’s COVID-19 Vaccine
The Johnson & Johnson COVID-19 Vaccine, developed by the Janssen Pharmaceutical Companies of Johnson & Johnson, received EUA from the FDA on February 27, 2021, to prevent COVID-19 in individuals 18 years of age and older.

This decision was based in part on the totality of scientific evidence, including data from the Phase 3 ENSEMBLE study that demonstrated the vaccine was 66.1 percent effective in preventing moderate to severe/critical disease and 85 percent effective in preventing severe/critical disease across all regions studied, 28 days post-vaccination. The vaccine showed protection against COVID-19 related hospitalization and death, beginning 28 days after vaccination.

The terms of the EUA allow use of the vaccine while more data are gathered. The Company plans to file for a Biologics License Application (BLA) with the FDA later in 2021.

On April 21, 2021, Johnson & Johnson announced the publication of primary data from the Phase 3 ENSEMBLE clinical trial in the New England Journal of Medicine. The primary analysis of the Company’s single-dose COVID-19 vaccine follows the topline efficacy and safety data announced in January, showing the trial met all primary and key secondary endpoints and prevented COVID-19 related hospitalization and death across all study participants 28 days after vaccination. The data also show the vaccine to be consistently effective against symptomatic infection, including in South Africa and Brazil where there was a high prevalence of rapidly emerging SARS-CoV-2 variants.   

For more information on the Company’s multi-pronged approach to helping combat the pandemic, visit: www.jnj.com/covid-19.

# # #

Authorized Use
The Janssen COVID-19 vaccine is authorized for use in the U.S. under an Emergency Use Authorization (EUA) for active immunization to prevent coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) in individuals 18 years of age and older.

IMPORTANT SAFETY INFORMATION
WHAT SHOULD YOU MENTION TO YOUR VACCINATION PROVIDER BEFORE YOU GET THE JANSSEN COVID-19 VACCINE?
Tell the vaccination provider about all of your medical conditions, including if you:

  • have any allergies
  • have a fever
  • have a bleeding disorder or are on a blood thinner
  • are immunocompromised or are on a medicine that affects your immune system
  • are pregnant or plan to become pregnant
  • are breastfeeding
  • have received another COVID-19 vaccine

WHO SHOULD NOT GET THE JANSSEN COVID-19 VACCINE?
You should not get the Janssen COVID-19 Vaccine if you:

  • had a severe allergic reaction to any ingredient of this vaccine.

HOW IS THE JANSSEN COVID-19 VACCINE GIVEN?
The Janssen COVID-19 Vaccine will be given to you as an injection into the muscle. The Janssen COVID-19 Vaccine vaccination schedule is a single dose.

WHAT ARE THE RISKS OF THE JANSSEN COVID-19 VACCINE?
Side effects that have been reported with the Janssen COVID-19 Vaccine include:

  • Injection site reactions: pain, redness of the skin, and swelling.
  • General side effects: headache, feeling very tired, muscle aches, nausea, fever.

There is a remote chance that the Janssen COVID-19 Vaccine could cause a severe allergic reaction. A severe allergic reaction would usually occur within a few minutes to one hour after getting a dose of the Janssen COVID-19 Vaccine. For this reason, your vaccination provider may ask you to stay at the place where you received your vaccine for monitoring after vaccination. Signs of a severe allergic reaction can include:

  • Difficulty breathing
  • Swelling of your face and throat
  • A fast heartbeat
  • A bad rash all over your body
  • Dizziness and weakness

Blood clots involving blood vessels in the brain, abdomen, and legs along with low levels of platelets (blood cells that help your body stop bleeding), have occurred in some people who have received the Janssen COVID-19 Vaccine. In people who developed these blood clots and low levels of platelets, symptoms began approximately one to two-weeks following vaccination. Most people who developed these blood clots and low levels of platelets were females ages 18 through 49 years. The chance of having this occur is remote. You should seek medical attention right away if you have any of the following symptoms after receiving Janssen COVID-19 Vaccine:

  • Shortness of breath,
  • Chest pain,
  • Leg swelling,
  • Persistent abdominal pain,
  • Severe or persistent headaches or blurred vision,
  • Easy bruising or tiny blood spots under the skin beyond the site of the injection.

These may not be all the possible side effects of the Janssen COVID-19 Vaccine. Serious and unexpected effects may occur. The Janssen COVID-19 Vaccine is still being studied in clinical trials.

WHAT SHOULD I DO ABOUT SIDE EFFECTS?
If you experience a severe allergic reaction, call 9-1-1, or go to the nearest hospital.
Call the vaccination provider or your healthcare provider if you have any side effects that bother you or do not go away.

Report vaccine side effects to FDA/CDC Vaccine Adverse Event Reporting System (VAERS). The VAERS toll-free number is 1-800-822-7967 or report online to https://vaers.hhs.gov/reportevent.html. Please include “Janssen COVID-19 Vaccine EUA” in the first line of box #18 of the report form. In addition, you can report side effects to Janssen Biotech, Inc. at 1-800-565-4008.

The FDA EUA Fact Sheet for Healthcare Providers Administering Vaccine (Vaccination Providers) and full EUA Prescribing Information are available at www.JanssenCOVID19Vaccine.com/EUA-factsheet

About Johnson & Johnson
At Johnson & Johnson, we believe good health is the foundation of vibrant lives, thriving communities and forward progress. That’s why for more than 130 years, we have aimed to keep people well at every age and every stage of life. Today, as the world’s largest and most broadly-based healthcare company, we are committed to using our reach and size for good. We strive to improve access and affordability, create healthier communities, and put a healthy mind, body and environment within reach of everyone, everywhere. We are blending our heart, science and ingenuity to profoundly change the trajectory of health for humanity. Learn more at www.jnj.com. Follow us at @JNJNews.

About the Janssen Pharmaceutical Companies of Johnson & Johnson
At Janssen, we’re creating a future where disease is a thing of the past. We’re the Pharmaceutical Companies of Johnson & Johnson, working tirelessly to make that future a reality for patients everywhere by fighting sickness with science, improving access with ingenuity, and healing hopelessness with heart. We focus on areas of medicine where we can make the biggest difference: Cardiovascular & Metabolism, Immunology, Infectious Diseases & Vaccines, Neuroscience, Oncology, and Pulmonary Hypertension. Learn more at www.janssen.com. Follow us at @JanssenGlobal.

Cautions Concerning Forward-Looking Statements
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding development of a potential preventive vaccine for COVID-19. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of the Janssen Pharmaceutical Companies, and/or Johnson & Johnson. Risks and uncertainties include, but are not limited to: challenges and uncertainties inherent in product research and development, including the uncertainty of clinical success and of obtaining regulatory approvals; uncertainty of commercial success; manufacturing difficulties and delays; competition, including technological advances, new products and patents attained by competitors; challenges to patents; product efficacy or safety concerns resulting in product recalls or regulatory action; changes in behavior and spending patterns of purchasers of health care products and services; changes to applicable laws and regulations, including global health care reforms; and trends toward health care cost containment. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson’s Annual Report on Form 10-K for the fiscal year ended January 3, 2021, including in the sections captioned “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,” and in the company’s most recently filed Quarterly Report on Form 10-Q, and the company’s subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. None of the Janssen Pharmaceutical Companies nor Johnson & Johnson undertakes to update any forward-looking statement as a result of new information or future events or developments.

###

 

SOURCE Johnson & Johnson

Related Links

http://www.jnj.com/

CYDY – Shareholder Alert: Kessler Topaz Meltzer & Check, LLP Reminds Shareholders of CytoDyn Inc. of Securities Class Action Lawsuit

Radnor, Pennsylvania–(Newsfile Corp. – April 23, 2021) –  The law firm of Kessler Topaz Meltzer & Check, LLP gives class action alert to CytoDyn Inc. (OTCQB: CYDY) (“CytoDyn”) investors that a securities fraud class lawsuit has been filed on behalf of those who purchased or acquired CytoDyn common stock between March 27, 2020 and March 9, 2021, inclusive (the “Class Period”).

Deadline Reminder: Investors who purchased or acquired CytoDyn common stock during the Class Period may, no later than May 17, 2021, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; toll free at (844) 887-9500; via e-mail at info@ktmc.com; or click https://www.ktmc.com/cytodyn-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=cytodyn.

CytoDyn is a biotechnology company that has focused on the development and commercialization of a drug named “Leronlimab” which has long been promoted as a potential therapy for HIV patients. Since the beginning of the global COVID-19 pandemic, CytoDyn began aggressively touting Leronlimab as a treatment for COVID-19. Following CytoDyn’s pivot to hyping Leronlimab as a treatment for COVID-19, CytoDyn’s stock price rose exponentially.

Throughout the Class Period, CytoDyn continued to tout Leronlimab as a potential treatment for COVID-19 and to pump up the stock price of CytoDyn while executives aggressively sold shares. Indeed, while CytoDyn’s stock price was sufficiently pumped with the COVID-19 cure hype, long-term shareholders, including defendants Nader Z. Pourhassan, CytoDyn’s Chief Executive Officer, and Michael Mulholland, CytoDyn’s Chief Financial Officer, dumped millions of shares.

Following the cash-out by CytoDyn insiders and long-term shareholders, the defendants’ scheme began to unravel. On Friday, March 5, 2021 after the close of trading, and continuing over that weekend, CytoDyn issued press releases describing the results of the Phase IIb/III data on Leronlimab. The press releases had titles such as “Cytodyn to File Accelerated Rolling Review with MHRA and Interim Order (IO) with Health Canada for COVID-19” and “Cytodyn’s Phase 3 Trial Demonstrates Safety, a 24% Reduction in Mortality and Faster Hospital Discharge for Mechanically Ventilated Critically Ill COVID-19 Patients Treated with Leronlimab.” However, hidden in the press releases was a disclosure that the primary endpoint of the study-lowering all-cause mortality at Day 28- was not statistically significant. Following the issuance of its press releases, CytoDyn was accused of “massaging the data” and squeezing good news out of a failed study, the results of which CytoDyn reportedly sat on pending regulatory discussions.

Following the release of the data, the price of CytoDyn’s common stock fell over 28% to close at $2.91 on March 8, 2021. On March 9, 2021, the price of CytoDyn’s common stock continued to fall, dropping an additional 19% to close at $2.35.

The complaint alleges that, throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that CytoDyn’s development and marketing of Leronlimab as a treatment for COVID-19 was not commercially viable.

CytoDyn investors may, no later than May 17, 2021, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.

Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.

CONTACT:

Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (toll free)
info@ktmc.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/81615

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EA – Electronic Arts Has Trailed Videogame Rivals. Why the Stock Could Catch Up Soon.

Videogame publisher Electronic Arts has had a busy few months, with two significant acquisitions that will bolster the company’s portfolio of popular franchises. Its stock, however, hasn’t been as exciting.

Since Barron’s took a positive view of the three largest U.S. game makers in October, EA (ticker: EA) shares have underperformed the S&P 500 index, rising 11% compared with the index’s gain of 24%.

However,…

LDOS – Kessler Topaz Meltzer & Check, LLP Reminds Shareholders of Leidos Holdings, Inc. of Deadline in Securities Fraud Class Action Lawsuit

Radnor, Pennsylvania–(Newsfile Corp. – April 23, 2021) –  The law firm of Kessler Topaz Meltzer & Check, LLP reminds Leidos Holdings, Inc. (NYSE: LDOS) (“Leidos”) investors that a securities fraud class action lawsuit has been filed against on behalf of those who purchased or acquired Leidos securities between May 4, 2020 and February 23, 2021, inclusive (the “Class Period”).

Investor Deadline Reminder: Investors who purchased or acquired Leidos securities during the Class Period may, no later than May 5, 2021, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; toll free at (844) 887-9500; via e-mail at info@ktmc.com; or click https://www.ktmc.com/leidos-holdings-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=leidos

Leidos is a science, engineering, and information technology company that provides services and solutions in the defense, intelligence, homeland security, civil and health markets, both domestically and internationally. The Class Period commences on May 4, 2020, when Leidos announced that it had completed the acquisition of L3Harris Technologies’ Security Detection and Automation businesses (“SD&A Businesses”).

According to the complaint, on February 16, 2021, Spruce Point Capital Management LLC (“Spruce Point”) published a research report, alleging, among other things that “Leidos is potentially covering up at least $100m of fictitious sales, mischaracterizing $355 – $367m of international revenue.” The report also alleged that Leidos was “concealing numerous product defects from investors, notably faulty explosive detection systems at airports and borders.” Following this news, Leidos’s share price fell $2.58, or 2.4%, to close at $105.22 per share on February 16, 2021.

Then, on February 23, 2021, Leidos announced its fourth quarter and full year 2020 financial results in a press release. Therein, Leidos reported $89 million in revenue related to the SD&A Businesses for the fourth quarter, meaning that after two full quarters, the acquisition generated only $163 million in sales (or $326 million annualized), falling well short of projected $500 million sales. Leidos expected cash flow of $850 million, well below analyst estimates of $1.083 billion. Following this news, Leidos’s stock price fell $10.29, or 9.91%, to close at $93.51 per share on February 23, 2021.

Finally, on February 24, 2021, Spruce Point highlighted that Leidos had “materially expanded” the risk disclosures in its annual report for the year ended December 31, 2020, which had been filed after the market closed on February 23, 2021. Spruce Point tweeted: “We believe it is validating all the major points of our report.” Spruce Point noted that Leidos expanded its risk disclosures regarding insurance coverage, as “Liedos is shipping defective products back from various countries [that] may not have the same protections as in the U.S.” Following this news, Leidos’s stock price fell $3.13, or 3.3%, to close at $90.38 per share on February 24, 2021.

The complaint alleges that, throughout the Class Period, the defendants failed to disclose to investors that: (1) the purported benefits of Leidos’s acquisition of L3Harris Technologies’ SD&A Businesses were significantly overstated; (2) Leidos’s products suffered from numerous product defects, including faulty explosive detection systems at airports, ports, and borders; (3) as a result of the foregoing, Leidos’s financial results were significantly overstated; and (4) as a result of the foregoing, the defendants’ positive statements about Leidos’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Leidos investors may, no later than May 5, 2021, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.

Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.

CONTACT:

Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (toll free)
info@ktmc.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/81607

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FGEN – Fibrogen Shareholder Alert

Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In FibroGen To Contact Him Directly To Discuss Their Options

New York, New York–(Newsfile Corp. – April 23, 2021) –  Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against FibroGen, Inc. (“FibroGen” or the “Company”) (NASDAQ: FGEN) and reminds investors of the June 11, 2021 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

If you suffered losses exceeding $50,000 investing in FibroGen stock or options between November 8, 2019 and April 6, 2021 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/FGEN.

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There is no cost or obligation to you.

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Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Delaware, Pennsylvania, California and Georgia.

As detailed below, the lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) that the Company’s prior disclosures of U.S. primary cardiovascular safety analyses from the roxadustat Phase 3 program for the treatment of anemia certain safety analyses submitted in connection with CKD included post-hoc changes to the stratification factors; (2) that FibroGen’s analyses with the pre-specified stratification factors result in higher hazard ratios (point estimates of relative risk) and 95% confidence intervals; (3) that, based on these analyses the Company could not conclude that roxadustat reduces the risk of (or is superior to) MACE+ in dialysis, and MACE and MACE+ in incident dialysis compared to epoetin-alfa; (4) that, as a result, the Company faced significant uncertainty that its NDA for roxadustat as a treatment for anemia of CKD would be approved by the FDA; and (5) that, as a result of the foregoing, Defendants’ statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On April 6, 2021, after the market closed, FibroGen issued a statement “provid[ing] clarification of certain prior disclosures of U.S. primary cardiovascular safety analyses from the roxadustat Phase 3 program for the treatment of anemia of chronic kidney disease (‘CKD’).” Specifically, the Company stated that the safety analyses “included post-hoc changes to the stratification factors.” FibroGen further revealed that, based on analyses using the pre-specified stratification factors, the Company “cannot conclude that roxadustat reduces the risk of (or is superior to) MACE+ in dialysis, and MACE and MACE+ in incident dialysis compared to epoetin-alfa.”

On this news, the Company’s share price fell $14.90, or 43%, to close at $19.74 per share on April 7, 2021, on heavy volume. Shares continued to fall on April 8, 2021, to close at $18.81 per share (a decline of $0.93 per share or 4.7%), on heavy volume.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.

Faruqi & Faruqi, LLP also encourages anyone with information regarding FibroGen’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/81635

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CBAN – SHAREHOLDER ALERT: Monteverde & Associates PC Announces an Investigation of Colony Bancorp, Inc. – CBAN

NEW YORK, April 23, 2021 /PRNewswire/ — Juan Monteverde, founder and managing partner at Monteverde & Associates PC, a national securities firm rated Top 50 in the 2018 and 2019 ISS Securities Class Action Services Report and headquartered at the Empire State Building in New York City, is investigating Colony Bancorp, Inc. (“CBAN” or the “Company”) (CBAN) relating to its proposed acquisition by SouthCrest Financial Group. Under the terms of the agreement, Southcrest shareholders are expected to receive either $10.45 in cash per share, or 0.7318 shares of CBAN per share they own.

The investigation focuses on whether Colony Bancorp, Inc. and its Board of Directors violated securities laws and/or breached their fiduciary duties to the Company by 1) failing to conduct a fair process, and 2) whether the transaction is properly valued.

Click here for more information: https://www.monteverdelaw.com/case/colony-bancorp-inc. It is free and there is no cost or obligation to you.

About Monteverde & Associates PC
We are a national class action securities litigation law firm that has recovered millions of dollars and is committed to protecting shareholders from corporate wrongdoing. We were listed in the Top 50 in the 2018-2020 ISS Securities Class Action Services Report. Our lawyers have significant experience litigating Mergers & Acquisitions and Securities Class Actions. Mr. Monteverde is recognized by Super Lawyers as a Rising Star in Securities Litigation in 2013, 2017-2019, an award given to less than 2.5% of attorneys in a particular field. He has also been selected by Martindale-Hubbell as a 2017-2020 Top Rated Lawyer. Our firm’s recent successes include changing the law in a significant victory that lowered the standard of liability under Section 14(e) of the Exchange Act in the Ninth Circuit. Thereafter, our firm successfully preserved this victory by obtaining dismissal of a writ of certiorari as improvidently granted at the United States Supreme Court. Emulex Corp. v. Varjabedian, 139 S. Ct. 1407 (2019). Also, in 2019 we recovered or secured six cash common funds for shareholders in mergers & acquisitions class action cases.

If you own common stock in Colony Bancorp, Inc. and wish to obtain additional information and protect your investments free of charge, please visit our website or contact Juan E. Monteverde, Esq. either via e-mail at [email protected] or by telephone at (212) 971-1341.

Contact:
Juan E. Monteverde, Esq.
MONTEVERDE & ASSOCIATES PC
The Empire State Building
350 Fifth Ave. Suite 4405
New York, NY 10118
United States of America
[email protected]
Tel: (212) 971-1341

Attorney Advertising. (C) 2021 Monteverde & Associates PC. The law firm responsible for this advertisement is Monteverde & Associates PC (www.monteverdelaw.com).  Prior results do not guarantee a similar outcome with respect to any future matter.

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