Louisiana
|
26-0513559
|
(State or other jurisdiction incorporation or organization)
|
(I.R.S. Employer Identification Number)
|
400 East Thomas Street
|
|
Hammond, Louisiana
|
70401
|
(Address of principal executive office)
|
(Zip Code)
|
(985) 345-7685
|
|
(Telephone number, including area code)
|
Table of Contents | ||
Page
|
||
Part I.
|
||
Item 1.
|
3 | |
3
|
||
4
|
||
5 | ||
6 | ||
7 | ||
8
|
||
Item 2.
|
24 | |
Item 3.
|
37 | |
Item 4.
|
38 | |
Part II.
|
38 | |
Item 1.
|
38 | |
Item 1A.
|
38 | |
Item 6.
|
38 | |
Signatures
|
39 |
CONSOLIDATED BALANCE SHEETS (unaudited)
|
||||||
(in thousands, except share data) |
September 30, 2014
|
December 31, 2013
|
||||
Assets
|
||||||
Cash and cash equivalents:
|
||||||
Cash and due from banks
|
$
|
27,246 |
$
|
60,819
|
||
Federal funds sold
|
301 |
665
|
||||
Cash and cash equivalents
|
27,547 |
61,484
|
||||
Interest-earning time deposits with banks | 10,747 | 747 | ||||
Investment securities:
|
||||||
Available for sale, at fair value
|
518,614
|
484,211
|
||||
Held to maturity, at cost (estimated fair value of $139,460 and $141,642 respectively)
|
143,353
|
150,293
|
||||
Investment securities
|
661,967
|
634,504
|
||||
Federal Home Loan Bank stock, at cost
|
1,928
|
1,835
|
||||
Loans held for sale | - | 88 | ||||
Loans, net of unearned income
|
743,061
|
703,166
|
||||
Less: allowance for loan losses
|
8,627 |
10,355
|
||||
Net loans
|
734,434 |
692,811
|
||||
Premises and equipment, net
|
19,972
|
19,612
|
||||
Goodwill
|
1,999
|
1,999
|
||||
Intangible assets, net
|
1,818 |
2,073
|
||||
Other real estate, net
|
1,985 |
3,357
|
||||
Accrued interest receivable
|
6,752 |
6,258
|
||||
Other assets
|
7,655 |
11,673
|
||||
Total Assets
|
$
|
1,476,804
|
$
|
1,436,441
|
||
Liabilities and Shareholders' Equity
|
||||||
Deposits:
|
||||||
Noninterest-bearing demand
|
$
|
204,738
|
$
|
204,291
|
||
Interest-bearing demand
|
390,673
|
391,350
|
||||
Savings
|
71,185 |
65,445
|
||||
Time
|
653,797
|
642,013
|
||||
Total deposits
|
1,320,393 |
1,303,099
|
||||
Short-term borrowings
|
12,300 |
5,788
|
||||
Accrued interest payable
|
2,144
|
2,364
|
||||
Long-term borrowings | 1,605 | 500 | ||||
Other liabilities
|
3,954 |
1,285
|
||||
Total Liabilities
|
1,340,396
|
1,313,036
|
||||
Shareholders' Equity
|
||||||
Preferred stock:
|
||||||
Series C - $1,000 par value - authorized 39,435 shares; issued and outstanding 39,435 | 39,435 | 39,435 | ||||
Common stock:
|
||||||
$1 par value - authorized 100,600,000 shares; issued 6,294,227 shares
|
6,294
|
6,294
|
||||
Surplus
|
39,387
|
39,387
|
||||
Treasury stock, at cost, 2,895 shares | (54 | ) | (54 | ) | ||
Retained earnings
|
52,587
|
47,477
|
||||
Accumulated other comprehensive (loss) income
|
(1,241 | ) |
(9,134
|
) | ||
Total Shareholders' Equity
|
136,408
|
123,405
|
||||
Total Liabilities and Shareholders' Equity
|
$
|
1,476,804 |
$
|
1,436,441
|
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
|
||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
(in thousands, except share data) | 2014 |
2013
|
2014 | 2013 | ||||||||
Interest Income:
|
||||||||||||
Loans (including fees)
|
$
|
9,735 | $ |
9,376
|
$ | 29,220 | $ |
27,661
|
||||
Deposits with other banks
|
16 |
33
|
97
|
124
|
||||||||
Securities (including FHLB stock)
|
3,410 |
3,423
|
10,034
|
10,027
|
||||||||
Federal funds sold
|
- |
-
|
-
|
1
|
||||||||
Total Interest Income
|
13,161 |
12,832
|
39,351 |
37,813
|
||||||||
Interest Expense:
|
||||||||||||
Demand deposits
|
321 | 291 |
1,004
|
973 | ||||||||
Savings deposits
|
8 | 8 | 24 |
33
|
||||||||
Time deposits
|
1,923 |
2,450
|
5,848
|
7,441
|
||||||||
Borrowings
|
44 | 39 | 102 |
114
|
||||||||
Total Interest Expense
|
2,296 |
2,788
|
6,978 |
8,561
|
||||||||
Net Interest Income
|
10,865 | 10,044 | 32,373 | 29,252 | ||||||||
Less: Provision for loan losses
|
397 | 307 |
1,054
|
2,011 | ||||||||
Net Interest Income after Provision for Loan Losses
|
10,468 | 9,737 | 31,319 |
27,241
|
||||||||
Noninterest Income:
|
||||||||||||
Service charges, commissions and fees
|
1,150 | 1,181 | 3,302 |
3,503
|
||||||||
Net gains on securities
|
91 |
12
|
300 |
1,556
|
||||||||
Net gains on sale of loans
|
1 |
(67
|
) | (6 | ) |
(65
|
) | |||||
Other
|
365 | 343 | 1,127 | 1,016 | ||||||||
Total Noninterest Income
|
1,607 |
1,469
|
4,723
|
6,010
|
||||||||
Noninterest Expense:
|
||||||||||||
Salaries and employee benefits
|
3,952 |
3,594
|
11,736 |
10,767
|
||||||||
Occupancy and equipment expense
|
993 |
981
|
2,995
|
2,966
|
||||||||
Other
|
2,698 | 3,264 |
8,638
|
9,672
|
||||||||
Total Noninterest Expense
|
7,643 | 7,839 | 23,369 |
23,405
|
||||||||
Income Before Income Taxes
|
4,432 | 3,367 |
12,673
|
9,846
|
||||||||
Less: Provision for income taxes
|
1,461 | 1,109 |
4,247
|
3,367
|
||||||||
Net Income
|
2,971 | 2,258 | 8,426 |
6,479
|
||||||||
Preferred Stock Dividends
|
(99 | ) |
(129
|
)
|
(296
|
) |
(615
|
) | ||||
Income Available to Common Shareholders
|
$
|
2,872 | $ |
2,129
|
$ |
8,130
|
$ | 5,864 | ||||
Per Common Share:
|
||||||||||||
Cash dividends paid
|
$
|
0.16 | $ | 0.16 | $ |
0.48
|
$ |
0.48
|
||||
Earnings |
$
|
0.45 | $ | 0.34 | $ |
1.29
|
$ |
0.93
|
||||
Weighted Average Common Shares Outstanding
|
6,291,332
|
6,291,332
|
6,291,332
|
6,291,332
|
||||||||
See Notes to Consolidated Financial Statements
|
FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY | ||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)
|
||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||
Net Income | $ | 2,971 | $ | 2,258 | $ | 8,426 | $ | 6,479 | ||||
Other comprehensive income: | ||||||||||||
Unrealized (losses) gains on securities: | ||||||||||||
Unrealized holding gains (losses) arising during the period | (944 | ) | (199 | ) | 12,259 | (16,570 | ) | |||||
Reclassification adjustments for gains included in net income | (91 | ) | (12 | ) | (300 | ) | (1,556 | ) | ||||
Change in unrealized (losses) gains on securities | (1,035 | ) | (211 | ) | 11,959 | (18,126 | ) | |||||
Tax impact | 352 | 71 | (4,066 | ) | 6,162 | |||||||
Other comprehensive income (loss) | (683 | ) | (140 | ) | 7,893 | (11,964 | ) | |||||
Comprehensive Income (Loss) | $ | 2,288 | $ | 2,118 | $ | 16,319 | $ | (5,485 | ) | |||
See Notes to Consolidated Financial Statements |
FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY | |||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) | |||||||||||||||||||||
Series C | Accumulated | ||||||||||||||||||||
Preferred | Common | Other | |||||||||||||||||||
Stock | Stock | Treasury | Retained | Comprehensive | |||||||||||||||||
$1,000 Par | $1 Par | Surplus | Stock | Earnings | Income/(Loss) | Total | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||
Balance December 31, 2012
|
$ | 39,435 | $ | 6,294 | $ |
39,387
|
$ | (54 | ) | $ |
43,071
|
$ |
6,048
|
|
$ |
134,181
|
|||||
Net income
|
- |
-
|
-
|
- |
6,479
|
-
|
6,479
|
||||||||||||||
Other comprehensive income (loss)
|
- |
-
|
-
|
- |
-
|
(11,964
|
) | (11,964 |
)
|
||||||||||||
Cash dividends on common stock ($0.48 per share)
|
- |
-
|
-
|
- |
(3,020
|
)
|
|
(3,020
|
)
|
||||||||||||
Preferred stock dividend
|
- |
-
|
-
|
- |
(615
|
)
|
|
(615
|
)
|
||||||||||||
Balance September 30, 2013 (unaudited)
|
$ | 39,435 | $ |
6,294
|
$ | 39,387 | $ | (54 |
)
|
$ |
45,915
|
$ |
(5,916
|
)
|
$ |
125,061
|
|||||
Balance December 31, 2013
|
$ | 39,435 | $ |
6,294
|
$ |
39,387
|
$ | (54 |
)
|
$ |
47,477
|
$ |
(9,134
|
) | $ | 123,405 | |||||
Net income | - | - | - | - | 8,426 | - | 8,426 | ||||||||||||||
Other comprehensive income
|
- |
-
|
-
|
- |
-
|
7,893
|
|
7,893
|
|
||||||||||||
Cash dividends on common stock ($0.48 per share)
|
- |
-
|
-
|
- |
(3,020
|
)
|
-
|
(3,020
|
)
|
||||||||||||
Preferred stock dividend
|
- |
-
|
-
|
- |
(296
|
)
|
-
|
(296
|
)
|
||||||||||||
Balance September 30, 2014 (unaudited)
|
$ | 39,435 | $ |
6,294
|
$ |
39,387
|
$ | (54 |
)
|
$ |
52,587
|
$ |
(1,241
|
) | $ |
136,408
|
|||||
See Notes to Consolidated Financial Statements
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
|
||||||
Nine Months Ended September 30,
|
||||||
(in thousands) |
2014
|
2013
|
||||
Cash Flows From Operating Activities
|
||||||
Net income
|
$
|
8,426 |
$
|
6,479
|
||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||
Provision for loan losses
|
1,054
|
2,011
|
||||
Depreciation and amortization
|
1,608
|
1,581
|
||||
Amortization/Accretion of investments
|
1,585
|
1,594
|
||||
Gain on calls and sales of securities | (300 | ) | (1,556 | ) | ||
Gain on sale of assets | (23 | ) | 56 | |||
ORE write downs and loss on disposition
|
459 |
194
|
||||
Net decrease in loans held for sale | 88 | 250 | ||||
FHLB stock dividends | (3 | ) | (2 | ) | ||
Change in other assets and liabilities, net
|
1,852
|
3,446
|
||||
Net Cash Provided By Operating Activities
|
14,746
|
14,053
|
||||
Cash Flows From Investing Activities
|
||||||
Funds invested in certificates of deposits | (10,000 | ) | - | |||
Proceeds from maturities and calls of HTM securities | 6,775 |
12,414
|
||||
Proceeds from maturities, calls and sales of AFS securities | 467,335 | 579,284 | ||||
Funds invested in HTM securities
|
- | (107,616 | ) | |||
Funds Invested in AFS securities | (490,898 | ) |
(478,595
|
) | ||
Proceeds from sale/redemption of Federal Home Loan Bank stock
|
2,955 | 1,252 | ||||
Funds invested in Federal Home Loan Bank stock
|
(3,045 | ) | (2,568 | ) | ||
Net increase in loans
|
(44,542 | ) | (64,665 | ) | ||
Purchase of premises and equipment
|
(1,687 | ) |
(1,495
|
) | ||
Proceeds from sales of premises and equipment | 52 | - | ||||
Proceeds from sales of other real estate owned
|
2,777 | 896 | ||||
Net Cash Used In Investing Activities
|
(70,278
|
)
|
(61,093
|
)
|
||
Cash Flows From Financing Activities
|
||||||
Net increase (decrease) in deposits
|
17,294
|
(1,989
|
) | |||
Net increase in federal funds purchased and short-term borrowings
|
6,512
|
27,711
|
||||
Proceeds from long-term borrowings | 1,555 | - | ||||
Repayment of long-term borrowings
|
(450
|
) |
(450
|
)
|
||
Dividends paid
|
(3,316
|
)
|
(3,635
|
)
|
||
Net Cash Provided By Financing Activities
|
21,595
|
21,637
|
||||
Net (Decrease) In Cash and Cash Equivalents
|
(33,937
|
) |
(25,403
|
) | ||
Cash and Cash Equivalents at the Beginning of the Period
|
61,484
|
86,233
|
||||
Cash and Cash Equivalents at the End of the Period
|
$
|
27,547
|
$
|
60,830
|
||
Noncash Activities:
|
||||||
Loans transferred to foreclosed assets
|
$
|
1,865
|
$
|
2,385
|
||
Cash Paid During The Period:
|
||||||
Interest on deposits and borrowed funds
|
$
|
7,198
|
$
|
8,606
|
||
Income taxes
|
$
|
2,900
|
$
|
1,850 | ||
See Notes to the Consolidated Financial Statements.
|
September 30, 2014
|
December 31, 2013
|
|||||||||||||||||||||||
(in thousands) |
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
||||||||||||||||
Available for sale:
|
||||||||||||||||||||||||
U.S Treasuries | $ |
-
|
$ | - | $ | - | $ | - | $ | 36,000 | $ | - | $ | - | $ | 36,000 | ||||||||
U.S. Government Agencies
|
348,185 | 23 |
(6,699
|
)
|
341,509
|
302,816
|
-
|
(16,117
|
)
|
286,699
|
||||||||||||||
Corporate debt securities
|
131,522 |
4,722
|
(723
|
)
|
135,521
|
142,580
|
3,729
|
(1,828
|
)
|
144,481
|
||||||||||||||
Mutual funds or other equity securities
|
564 |
-
|
-
|
564
|
564
|
-
|
(8
|
) |
556
|
|||||||||||||||
Municipal bonds
|
40,223 |
808
|
(11
|
) |
41,020
|
16,091
|
384
|
-
|
|
16,475
|
||||||||||||||
Total available-for-sale securities
|
$
|
520,494 |
$
|
5,553
|
$
|
(7,433
|
)
|
$
|
518,614
|
$
|
498,051
|
$
|
4,113
|
$
|
(17,953
|
)
|
$
|
484,211
|
||||||
Held to maturity:
|
||||||||||||||||||||||||
U.S. Government Agencies
|
$
|
84,477 |
$
|
-
|
$
|
(2,921
|
)
|
$
|
81,556
|
$
|
86,927
|
$
|
-
|
$
|
(5,971
|
)
|
$
|
80,956
|
||||||
Mortgage-backed securities | 58,876 | - | (972 | ) | 57,904 | 63,366 | - | (2,680 | ) | 60,686 | ||||||||||||||
Total held to maturity securities
|
$
|
143,353
|
$
|
-
|
$
|
(3,893
|
)
|
$
|
139,460
|
$
|
150,293
|
$
|
-
|
$
|
(8,651
|
)
|
$
|
141,642
|
September 30, 2014
|
December 31, 2013 | |||||||||||
(in thousands) |
Amortized Cost
|
Fair Value
|
Amortized Cost | Fair Value | ||||||||
Available For Sale:
|
||||||||||||
Due in one year or less
|
$
|
16,056
|
$
|
16,156 | $ | 45,610 | $ | 45,738 | ||||
Due after one year through five years
|
259,923
|
260,588 | 190,239 | 189,238 | ||||||||
Due after five years through 10 years
|
190,727
|
188,516
|
221,356 | 211,724 | ||||||||
Over 10 years
|
53,788
|
53,354
|
40,846 | 37,511 | ||||||||
Total available for sale securities
|
$
|
520,494
|
$
|
518,614
|
$ | 498,051 | $ | 484,211 | ||||
Held to Maturity:
|
||||||||||||
Due in one year or less
|
$
|
-
|
$
|
-
|
$ | - | $ | - | ||||
Due after one year through five years
|
9,999
|
9,802
|
- | - | ||||||||
Due after five years through 10 years
|
74,478
|
71,754
|
86,927 | 80,956 | ||||||||
Over 10 years
|
-
|
-
|
- | - | ||||||||
Subtotal | 84,477 | 81,556 | 86,927 | 80,956 | ||||||||
Mortgage-backed Securities | 58,876 | 57,904 | 63,366 | 60,686 | ||||||||
Total held to maturity securities
|
$
|
143,353
|
$
|
139,460 | $ | 150,293 | $ | 141,642 |
At September 30, 2014 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
(in thousands) | Number of Securities |
Fair Value
|
Gross Unrealized Losses
|
Number of Securities |
Fair Value
|
Gross Unrealized Losses
|
Number of Securities |
Fair Value
|
Gross Unrealized Losses
|
|||||||||||||||
Available for sale:
|
||||||||||||||||||||||||
U.S. Treasuries | - | $ | - | $ | - | - | $ | - | $ | - | - | $ | - | $ | - | |||||||||
U.S. Government agencies
|
3 |
15,992
|
(8
|
) | 72 |
261,495
|
|
(6,691
|
) | 75 | 277,487 |
(6,699
|
) | |||||||||||
Corporate debt securities
|
21 |
12,117
|
(61 | ) | 52 |
15,942
|
(662
|
) | 73 |
28,059
|
(723
|
) | ||||||||||||
Mutual funds or other equity securities
|
- |
-
|
-
|
- | - |
-
|
- |
-
|
-
|
|||||||||||||||
Municipal bonds | 5 | 3,345 | (11 | ) | - | - | - | 5 | 3,345 | (11 | ) | |||||||||||||
Total available-for-sale securities
|
29 |
$
|
31,454
|
$
|
(80
|
) | 124 |
$
|
277,437
|
$
|
(7,353
|
) | 153 |
$
|
308,891
|
$
|
(7,433
|
) | ||||||
Held to maturity:
|
||||||||||||||||||||||||
U.S. Government agencies
|
- |
-
|
|
-
|
20 |
|
81,556
|
|
(2,921
|
) | 20 |
|
81,556
|
|
(2,921
|
) | ||||||||
Mortgage-backed securities | 5 | 12,260 | (97 | ) | 21 | 45,644 | (875 | ) | 26 | 57,904 | (972 | ) | ||||||||||||
Total held to maturity
|
5 |
$
|
12,260
|
$
|
(97
|
) | 41 |
$
|
127,200
|
$
|
(3,796
|
) | 46 |
$
|
139,460
|
$
|
(3,893
|
) |
At December 31, 2013 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
(in thousands) |
Number
of Securities
|
Fair Value
|
Gross Unrealized Losses
|
Number of Securities |
Fair Value
|
Gross Unrealized Losses
|
Number of Securities |
Fair Value
|
Gross Unrealized Losses
|
|||||||||||||||
Available for sale:
|
||||||||||||||||||||||||
U.S. Treasuries | 3 | $ | 26,000 | $ | - | - | $ | - | $ | - | 3 | $ | 26,000 | $ | - | |||||||||
U.S. Government agencies
|
65 |
218,047
|
(11,110
|
) | 21 |
68,652
|
|
(5,007
|
) | 86 |
286,699
|
(16,117
|
) | |||||||||||
Corporate debt securities
|
154 |
39,555
|
(1,378
|
) | 22 |
5,173
|
(450
|
) | 176 |
44,728
|
(1,828
|
) | ||||||||||||
Mutual funds or other equity securities
|
1 |
492
|
(8)
|
- |
-
|
-
|
1 |
492
|
(8
|
) | ||||||||||||||
Total available for sale
|
223 |
$
|
284,094
|
$
|
(12,496
|
) | 43 |
$
|
73,825
|
$
|
(5,457
|
) | 266 |
$
|
357,919
|
$
|
(17,953
|
) | ||||||
Held to maturity:
|
||||||||||||||||||||||||
U.S. Government agencies
|
14 |
$
|
50,520
|
$
|
(3,743
|
) | 7 |
$
|
30,436
|
$
|
(2,228
|
) | 21 |
$
|
80,956
|
$
|
(5,971
|
) | ||||||
Mortgage-backed securities | 26 | 60,686 | (2,680 | ) | - | - | - | 26 | 60,686 | (2,680 | ) | |||||||||||||
Total held to maturity
|
40 |
$
|
111,206
|
$
|
(6,423
|
) | 7 |
$
|
30,436
|
$
|
(2,228
|
) | 47 |
$
|
141,642
|
$
|
(8,651
|
) |
At September 30, 2014
|
||||||
(in thousands)
|
Amortized Cost
|
Fair Value
|
||||
U.S Treasury
|
$
|
-
|
$
|
-
|
||
Federal Home Loan Bank (FHLB)
|
158,603
|
154,536
|
||||
Federal Home Loan Mortgage Corporation (Freddie Mac-FHLMC)
|
76,248
|
75,051
|
||||
Federal National Mortgage Association (Fannie Mae-FNMA)
|
115,772
|
113,023
|
||||
Federal Farm Credit Bank (FFCB)
|
140,915
|
138,360
|
||||
Total
|
$
|
491,538
|
$
|
480,970 |
September 30, 2014
|
December 31, 2013
|
|||||||||
(in thousands except for %) |
Balance
|
As % of Category
|
Balance
|
As % of Category
|
||||||
Real Estate:
|
||||||||||
Construction & land development
|
$
|
47,817
|
6.4
|
%
|
$
|
47,550
|
6.7
|
%
|
||
Farmland
|
14,168
|
1.9
|
%
|
9,826
|
1.4
|
%
|
||||
1- 4 Family
|
111,623
|
15.0
|
%
|
103,764
|
14.7
|
%
|
||||
Multifamily
|
14,405
|
1.9
|
%
|
13,771
|
2.0
|
%
|
||||
Non-farm non-residential
|
333,417
|
44.8
|
%
|
336,071
|
47.7
|
%
|
||||
Total Real Estate
|
521,430
|
70.0
|
%
|
510,982
|
72.5
|
%
|
||||
Non-Real Estate: | ||||||||||
Agricultural
|
31,256
|
4.2
|
%
|
21,749
|
3.1
|
%
|
||||
Commercial and industrial
|
171,069
|
23.0
|
%
|
151,087
|
21.4
|
%
|
||||
Consumer and other
|
21,092
|
2.8
|
%
|
20,917
|
3.0
|
%
|
||||
Total Non-Real Estate | 223,417 | 30.0 | % | 193,753 | 27.5 | % | ||||
Total loans before unearned income
|
744,847
|
100.0
|
%
|
704,735
|
100.0
|
%
|
||||
Unearned income
|
(1,786
|
)
|
(1,569
|
)
|
||||||
Total loans net of unearned income
|
$
|
743,061
|
$
|
703,166
|
September 30, 2014
|
December 31, 2013 | |||||||||||||||||
(in thousands) |
Fixed
|
Floating
|
Total
|
Fixed | Floating | Total | ||||||||||||
One year or less
|
$
|
76,818
|
$
|
82,870
|
$
|
159,688
|
$ |
60,642
|
$ |
70,602
|
$ |
131,244
|
||||||
One to five years
|
241,700
|
201,687
|
443,387
|
229,657
|
200,420
|
430,077
|
||||||||||||
Five to 15 years
|
69,547
|
31,812
|
101,359
|
71,655
|
26,076
|
97,731
|
||||||||||||
Over 15 years
|
18,490 |
8,034
|
26,524
|
8,503
|
22,695
|
31,198
|
||||||||||||
Subtotal
|
$
|
406,555
|
$ |
324,403
|
730,958
|
$ |
370,457
|
$ |
319,793
|
690,250
|
||||||||
Nonaccrual loans
|
13,889
|
14,485
|
||||||||||||||||
Total loans before unearned income
|
744,847
|
704,735
|
||||||||||||||||
Unearned income
|
(1,786
|
)
|
(1,569 | ) | ||||||||||||||
Total loans net of unearned income | $ | 743,061 | $ | 703,166 |
As of September 30, 2014
|
||||||||||||||||||
(in thousands)
|
30-89 Days Past Due
|
90 Days or Greater
|
Total Past Due
|
Current
|
Total Loans
|
Recorded Investment 90 Days Accruing
|
||||||||||||
Real Estate:
|
||||||||||||||||||
Construction & land development
|
$
|
47
|
$
|
488 |
$
|
535
|
$
|
47,282
|
$
|
47,817 |
$
|
-
|
||||||
Farmland
|
-
|
262
|
262
|
13,906
|
14,168
|
-
|
||||||||||||
1 - 4 family
|
2,867
|
5,022
|
7,889
|
103,734
|
111,623
|
385
|
||||||||||||
Multifamily
|
-
|
-
|
-
|
14,405
|
14,405
|
-
|
||||||||||||
Non-farm non-residential
|
1,520
|
6,169
|
7,689
|
325,728 |
333,417
|
655
|
||||||||||||
Total Real Estate
|
|
4,434
|
|
11,941
|
|
16,375
|
505,055
|
521,430
|
1,040
|
|||||||||
Non-Real Estate:
|
||||||||||||||||||
Agricultural
|
|
-
|
1,073
|
1,073
|
30,183
|
31,256
|
-
|
|||||||||||
Commercial and industrial
|
53
|
1,915
|
1,968
|
169,101 |
171,069
|
-
|
||||||||||||
Consumer and other
|
162 |
-
|
162
|
20,930
|
21,092 |
-
|
||||||||||||
Total Non-Real Estate
|
|
215
|
|
2,988
|
3,203 |
220,214
|
223,417
|
-
|
||||||||||
Total loans before unearned income
|
$
|
4,649
|
$
|
14,929
|
$
|
19,578
|
$
|
725,269
|
$
|
744,847 |
$
|
1,040 | ||||||
Unearned income
|
(1,786 |
)
|
||||||||||||||||
Total loans net of unearned income
|
$
|
743,061
|
As of December 31, 2013
|
||||||||||||||||||
(in thousands)
|
30-89 Days Past Due
|
90 Days or Greater
|
Total Past Due
|
Current
|
Total Loans
|
Recorded Investment 90 Days Accruing
|
||||||||||||
Real Estate:
|
||||||||||||||||||
Construction & land development
|
$
|
100
|
$
|
73
|
$
|
173
|
$
|
47,377
|
$
|
47,550
|
$
|
-
|
||||||
Farmland
|
-
|
130
|
130
|
9,696
|
9,826
|
-
|
||||||||||||
1 - 4 family
|
3,534
|
4,662
|
8,196
|
95,568
|
103,764
|
414
|
||||||||||||
Multifamily
|
-
|
-
|
-
|
13,771
|
13,771
|
-
|
||||||||||||
Non-farm non-residential
|
154
|
7,539
|
7,693
|
328,378
|
336,071
|
-
|
||||||||||||
Total Real Estate
|
3,788
|
12,404
|
16,192
|
494,790
|
510,982
|
414
|
||||||||||||
Non-Real Estate: | ||||||||||||||||||
Agricultural
|
-
|
526
|
526
|
21,223
|
21,749
|
-
|
||||||||||||
Commercial and industrial
|
63
|
1,946
|
2,009
|
149,078
|
151,087
|
-
|
||||||||||||
Consumer and other
|
123
|
23
|
146
|
20,771
|
20,917
|
-
|
||||||||||||
Total Non-Real Estate | 186 | 2,495 | 2,681 | 191,072 | 193,753 | - | ||||||||||||
Total loans before unearned income
|
$
|
3,974
|
$
|
14,899
|
$
|
18,873
|
$
|
685,862
|
$
|
704,735
|
$
|
414
|
||||||
Unearned income
|
(1,569
|
)
|
||||||||||||||||
Total loans net of unearned income
|
$
|
703,166
|
in thousands)
|
As of September 30, 2014
|
As of December 31, 2013 | ||||
Real Estate:
|
||||||
Construction & land development
|
$
|
488 | $ |
73
|
||
Farmland
|
262 |
130
|
||||
1 - 4 family
|
4,637 |
4,248
|
||||
Multifamily
|
- | - | ||||
Non-farm non-residential
|
5,514
|
7,539
|
||||
Total Real Estate
|
10,901 |
11,990
|
||||
Non-Real Estate: | ||||||
Agricultural
|
1,073 |
526
|
||||
Commercial and industrial
|
1,915 |
1,946
|
||||
Consumer and other
|
- |
23
|
||||
Total Non-Real Estate | 2,988 | 2,495 | ||||
Total Nonaccrual Loans
|
$
|
13,889
|
$ |
14,485
|
As of September 30, 2014
|
As of December 31, 2013 | |||||||||||||||||||||||||||||
(in thousands)
|
Pass
|
Special
Mention
|
Substandard
|
Doubtful |
Total
|
Pass |
Special
Mention
|
Substandard | Doubtful | Total | ||||||||||||||||||||
Real Estate:
|
||||||||||||||||||||||||||||||
Construction & land development
|
$
|
42,035
|
$
|
1,406
|
$
|
4,376 | $ | - |
$
|
47,817
|
$ |
40,286
|
$ |
1,330
|
$ |
5,934
|
$ | - | $ |
47,550
|
||||||||||
Farmland
|
14,001
|
88
|
79 | - |
14,168
|
9,631
|
85 |
110
|
- |
9,826
|
||||||||||||||||||||
1 - 4 family
|
96,902
|
5,930
|
8,791 | - |
111,623
|
89,623
|
4,060
|
10,081
|
- |
103,764
|
||||||||||||||||||||
Multifamily
|
6,636 | 6,430 |
1,339
|
- |
14,405
|
5,884
|
5,936
|
1,951
|
- |
13,771
|
||||||||||||||||||||
Non-farm non-residential
|
305,343
|
9,636
|
18,438
|
- |
333,417
|
305,992
|
9,196
|
20,883
|
- |
336,071
|
||||||||||||||||||||
Total Real Estate
|
464,917
|
23,490 |
33,023
|
- | 521,430 |
451,416
|
20,607
|
38,959
|
- |
510,982
|
||||||||||||||||||||
Non-Real Estate: | ||||||||||||||||||||||||||||||
Agricultural
|
30,980
|
8
|
268
|
- |
31,256
|
21,486
|
11
|
252
|
- |
21,749
|
||||||||||||||||||||
Commercial and industrial
|
162,145 |
8,361
|
563
|
- | 171,069 |
149,930
|
592
|
565
|
- |
151,087
|
||||||||||||||||||||
Consumer and other
|
20,954
|
105
|
33 | - |
21,092
|
20,720
|
117
|
80
|
- |
20,917
|
||||||||||||||||||||
Total Non-Real Estate | 214,079 | 8,474 | 864 | - | 223,417 | 192,136 | 720 | 897 | - | 193,753 | ||||||||||||||||||||
Total loans before unearned income
|
$
|
678,996
|
$
|
31,964
|
$
|
33,887
|
$ | - |
$
|
744,847 | $ |
643,552
|
$ |
21,327
|
$ |
39,856
|
$ | - | $ |
704,735
|
||||||||||
Unearned income
|
(1,786
|
)
|
(1,569
|
) | ||||||||||||||||||||||||||
Total loans net of unearned income
|
$
|
743,061
|
$ |
703,166
|
As of September 30, | ||||||||||||||||||||||||||||||
2014
|
2013 | |||||||||||||||||||||||||||||
(in thousands)
|
Beginning
Allowance (12/31/13)
|
Charge-offs
|
Recoveries
|
Provision |
Ending
Allowance (9/30/14)
|
Beginning
Allowance (12/31/12)
|
Charge-offs
|
Recoveries
|
Provision |
Ending Allowance(9/30/13)
|
||||||||||||||||||||
Real Estate:
|
||||||||||||||||||||||||||||||
Construction & land development
|
$
|
1,530
|
$
|
(1,032
|
) |
$
|
2 | $ | 230 |
$
|
730 | $ |
1,098
|
$ | (233 | ) | $ |
3
|
$ | 384 | $ |
1,252
|
||||||||
Farmland
|
17
|
-
|
-
|
5 |
22
|
50
|
- |
140
|
(154 | ) |
36
|
|||||||||||||||||||
1 - 4 family
|
1,974
|
(208
|
) | 59 | (71 | ) |
1,754
|
2,239
|
(185
|
) |
35
|
169 |
2,258
|
|||||||||||||||||
Multifamily
|
376
|
-
|
39
|
106 |
521
|
284
|
-
|
-
|
267 |
551
|
||||||||||||||||||||
Non-farm non-residential
|
3,607
|
(1,425
|
) |
8
|
646 |
2,836
|
3,666
|
(1,053
|
) |
3
|
543 |
3,159
|
||||||||||||||||||
Total real estate
|
7,504
|
(2,665
|
) | 108 | 916 |
5,863
|
7,337
|
(1,471
|
) |
181
|
1,209 |
7,256
|
||||||||||||||||||
Non-Real Estate: | ||||||||||||||||||||||||||||||
Agricultural
|
46 |
(2
|
) | 1 | (5 | ) |
40
|
64
|
(41
|
) |
4
|
23 |
50
|
|||||||||||||||||
Commercial and industrial
|
2,176
|
(197
|
) | 21 | (266 | ) |
1,734
|
2,488
|
(942
|
) |
63
|
748 |
2,357
|
|||||||||||||||||
Consumer and other
|
208
|
(218
|
) |
170
|
15 |
175
|
233
|
(192
|
) |
191
|
(41 | ) |
191
|
|||||||||||||||||
Unallocated | 421 |
-
|
- | 394 | 815 | 220 | - | - | 72 | 292 | ||||||||||||||||||||
Total Non-Real Estate | 2,851 |
(417
|
) | 192 | 138 | 2,764 | 3,005 | (1,175 | ) | 258 | 802 | 2,890 | ||||||||||||||||||
Total
|
$
|
10,355
|
$
|
(3,082
|
) |
$
|
300
|
$ | 1,054 |
$
|
8,627
|
$ |
10,342
|
$ |
(2,646
|
) | $ | 439 | $ | 2,011 | $ | 10,146 |
As of September 30, 2014 | ||||||||||||||||||
(in thousands)
|
Allowance
Individually
Evaluated
for Impairment
|
Allowance
Collectively Evaluated
for Impairment
|
Total Allowance for
Credit Losses
|
Loans
Individually Evaluated for Impairment
|
Loans
Collectively Evaluated for Impairment
|
Total Loans before Unearned Income
|
||||||||||||
Real Estate:
|
||||||||||||||||||
Construction & land development
|
$
|
142
|
$ | 588 |
$
|
730 | $ | 4,194 | $ | 43,623 | $ | 47,817 | ||||||
Farmland
|
- | 22 |
22
|
-
|
14,168 |
14,168
|
||||||||||||
1 - 4 family
|
41 | 1,713 |
1,754
|
2,860
|
108,763 |
111,623
|
||||||||||||
Multifamily
|
400
|
121 | 521 | 1,339 | 13,066 | 14,405 | ||||||||||||
Non-farm non-residential
|
204
|
2,632 |
2,836
|
16,798
|
316,619 | 333,417 | ||||||||||||
Total Real Estate
|
787
|
5,076 |
5,863
|
25,191
|
496,239 |
521,430
|
||||||||||||
Non-Real Estate: | ||||||||||||||||||
Agricultural
|
-
|
40 |
40
|
-
|
31,256 |
31,256
|
||||||||||||
Commercial and industrial
|
-
|
1,734 |
1,734
|
-
|
171,069 |
171,069
|
||||||||||||
Consumer and other
|
-
|
175 |
175
|
-
|
21,092 |
21,092
|
||||||||||||
Unallocated | - | 815 | 815 | - | - | - | ||||||||||||
Total Non-Real Estate | - | 2,764 | 2,764 | - | 223,417 | 223,417 | ||||||||||||
Total
|
$
|
787
|
$ | 7,840 |
$
|
8,627 | $ | 25,191 | $ | 719,656 | $ |
744,847
|
||||||
Unearned Income | (1,786 | ) | ||||||||||||||||
Total loans net of unearned income | $ | 743,061 |
As of December 31, 2013 | ||||||||||||||||||
(in thousands)
|
Allowance
Individually
Evaluated for
Impairment
|
Allowance
Collectively Evaluated
for Impairment
|
Total Allowance for Credit Losses
|
Loans
Individually Evaluated for Impairment
|
Loans
Collectively Evaluated for Impairment
|
Total Loans before Unearned Income
|
||||||||||||
Real Estate:
|
||||||||||||||||||
Construction & land development
|
$
|
1,166
|
$ | 364 |
$
|
1,530
|
$ |
5,777
|
$ | 41,773 | $ |
47,550
|
||||||
Farmland
|
-
|
17 |
17
|
-
|
9,826 |
9,826
|
||||||||||||
1 - 4 family
|
25
|
1,949 |
1,974
|
2,868
|
100,896 |
103,764
|
||||||||||||
Multifamily
|
304
|
72 |
376
|
1,951
|
11,820 |
13,771
|
||||||||||||
Non-farm non-residential
|
1,053
|
2,554 |
3,607
|
19,279
|
316,792 |
336,071
|
||||||||||||
Total Real Estate
|
2,548
|
4,956 |
7,504
|
29,875
|
481,107 |
510,982
|
||||||||||||
Non-Real Estate: | ||||||||||||||||||
Agricultural
|
-
|
46 |
46
|
-
|
21,749 |
21,749
|
||||||||||||
Commercial and industrial
|
-
|
2,176 |
2,176
|
-
|
151,087 |
151,087
|
||||||||||||
Consumer and other
|
-
|
208 |
208
|
-
|
20,917 |
20,917
|
||||||||||||
Unallocated | - | 421 | 421 | - | - | - | ||||||||||||
Total Non-Real Estate | - | 2,851 | 2,851 | - | 193,753 | 193,753 | ||||||||||||
Total
|
$
|
2,548
|
$ | 7,807 |
$
|
10,355
|
$ |
29,875
|
$ | 674,860 | $ |
704,735
|
||||||
Unearned Income | (1,569 | ) | ||||||||||||||||
Total loans net of unearned income | $ | 703,166 |
As of September 30, 2014
|
||||||||||||||||||
(in thousands) |
Recorded Investment
|
Unpaid Principal
Balance
|
Related Allowance
|
Average Recorded Investment
|
Interest Income Recognized
|
Interest Income Cash Basis | ||||||||||||
Impaired Loans with no related allowance:
|
||||||||||||||||||
Real Estate:
|
||||||||||||||||||
Construction & land development
|
$
|
1,953
|
$
|
2,993
|
$
|
-
|
$
|
2,715
|
$
|
13
|
$ | 19 | ||||||
Farmland
|
-
|
-
|
-
|
-
|
-
|
- | ||||||||||||
1 - 4 family
|
804 |
1,018
|
-
|
801
|
39
|
44 | ||||||||||||
Multifamily
|
-
|
-
|
-
|
602
|
14
|
15 | ||||||||||||
Non-farm non-residential
|
7,434
|
12,667
|
-
|
8,755 |
750
|
598 | ||||||||||||
Total Real Estate
|
10,191
|
16,678
|
-
|
12,873
|
816
|
676 | ||||||||||||
Non-Real Estate: | ||||||||||||||||||
Agricultural
|
-
|
-
|
-
|
-
|
-
|
- | ||||||||||||
Commercial and industrial
|
-
|
-
|
-
|
-
|
-
|
- | ||||||||||||
Consumer and other
|
-
|
-
|
-
|
-
|
-
|
- | ||||||||||||
Total Non-Real Estate | - | - | - | - | - | - | ||||||||||||
Total Impaired Loans with no related allowance | 10,191 | 16,678 | - | 12,873 | 816 | 676 | ||||||||||||
Impaired Loans with an allowance recorded:
|
||||||||||||||||||
Real Estate:
|
||||||||||||||||||
Construction & land development
|
2,241
|
2,241
|
142
|
2,210
|
56 | 59 | ||||||||||||
Farmland
|
- |
-
|
-
|
-
|
-
|
- | ||||||||||||
1 - 4 family
|
2,056
|
2,071 |
41
|
2,065 |
128
|
120 | ||||||||||||
Multifamily
|
1,339
|
1,339
|
400
|
1,340
|
93
|
87 | ||||||||||||
Non-farm non-residential
|
9,364
|
9,364
|
204
|
9,425 | 148 | 145 | ||||||||||||
Total Real Estate
|
15,000
|
15,015 |
787
|
15,040
|
425
|
411 | ||||||||||||
Non-Real Estate: | ||||||||||||||||||
Agricultural
|
-
|
-
|
-
|
-
|
-
|
- | ||||||||||||
Commercial and industrial
|
-
|
-
|
-
|
-
|
-
|
- | ||||||||||||
Consumer and other
|
-
|
-
|
-
|
-
|
-
|
- | ||||||||||||
Total Non-Real Estate | - | - | - | - | - | - | ||||||||||||
Total Impaired Loans with an allowance recorded | 15,000 | 15,015 | 787 | 15,040 | 425 | 411 | ||||||||||||
Total Impaired Loans
|
$
|
25,191
|
$
|
31,693
|
$
|
787 |
$
|
27,913 |
$
|
1,241
|
$ | 1,087 |
As of December 31, 2013
|
||||||||||||||||||
(in thousands) |
Recorded Investment
|
Unpaid Principal Balance
|
Related Allowance
|
Average Recorded Investment
|
Interest Income Recognized
|
Interest Income Cash Basis | ||||||||||||
Impaired Loans with no related allowance:
|
||||||||||||||||||
Real Estate:
|
||||||||||||||||||
Construction & land development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
599
|
$
|
35
|
$ | 36 | ||||||
Farmland
|
-
|
-
|
-
|
-
|
-
|
- | ||||||||||||
1 - 4 family
|
441
|
441
|
-
|
472
|
28
|
35 | ||||||||||||
Multifamily
|
607
|
607
|
-
|
5,890
|
359
|
382 | ||||||||||||
Non-farm non-residential
|
4,722
|
5,456
|
-
|
7,579
|
425
|
527 | ||||||||||||
Total Real Estate
|
5,770
|
6,504
|
-
|
14,540
|
847
|
980 | ||||||||||||
Non-Real Estate: | ||||||||||||||||||
Agricultural
|
-
|
-
|
-
|
-
|
-
|
- | ||||||||||||
Commercial and industrial
|
-
|
-
|
-
|
1,472
|
134
|
162 | ||||||||||||
Consumer and other
|
-
|
-
|
-
|
-
|
-
|
- | ||||||||||||
Total Non-Real Estate | - | - | - | 1,472 | 134 | 162 | ||||||||||||
Total Impaired Loans with no related allowance | 5,770 | 6,504 | - | 16,012 | 981 | 1,142 | ||||||||||||
Impaired Loans with an allowance recorded:
|
||||||||||||||||||
Real Estate:
|
||||||||||||||||||
Construction & land development
|
5,777
|
5,777
|
1,166
|
6,345
|
383
|
360 | ||||||||||||
Farmland
|
-
|
-
|
-
|
-
|
-
|
- | ||||||||||||
1 - 4 family
|
2,427
|
2,620
|
25
|
1,643
|
121
|
107 | ||||||||||||
Multifamily
|
1,344
|
1,344
|
304
|
1,348
|
89
|
96 | ||||||||||||
Non-farm non-residential
|
14,557
|
17,469
|
1,053
|
14,868
|
775
|
573 | ||||||||||||
Total Real Estate
|
24,105
|
27,210
|
2,548
|
24,204
|
1,368
|
1,136 | ||||||||||||
Non-Real Estate: | ||||||||||||||||||
Agricultural
|
-
|
-
|
-
|
-
|
-
|
- | ||||||||||||
Commercial and industrial
|
-
|
-
|
-
|
-
|
-
|
- | ||||||||||||
Consumer and other
|
-
|
-
|
-
|
-
|
-
|
- | ||||||||||||
Total Non-Real Estate | - | - | - | - | - | - | ||||||||||||
Total Impaired Loans with an allowance recorded | 24,105 | 27,210 | 2,548 | 24,204 | 1,368 | 1,136 | ||||||||||||
Total Impaired Loans
|
$
|
29,875
|
$
|
33,714
|
$
|
2,548
|
$
|
40,216
|
$
|
2,349
|
$ | 2,278 |
Troubled Debt Restructurings | September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||
Accruing Loans | Accruing Loans | |||||||||||||||||||||||
(in thousands) | Current | 30-89 Days Past Due | Nonaccrual | Total TDRs | Current | 30-89 Days Past Due | Nonaccrual | Total TDRs | ||||||||||||||||
Real Estate: | ||||||||||||||||||||||||
Construction & land development | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||
Farmland | - | - | - | - | - | - | - | - | ||||||||||||||||
1-4 Family | - | - | - | - | - | - | - | - | ||||||||||||||||
Multifamily | - | - | - | - | - | - | - | - | ||||||||||||||||
Non-farm non residential | 3,004 | - | 230 | 3,234 | 3,006 | - | 230 | 3,236 | ||||||||||||||||
Total Real Estate | 3,004 | - | 230 | 3,234 | 3,006 | - | 230 | 3,236 | ||||||||||||||||
Non-Real Estate: | ||||||||||||||||||||||||
Agricultural | - | - | - | - | - | - | - | - | ||||||||||||||||
Commercial and industrial | - | - | - | - | - | - | - | - | ||||||||||||||||
Consumer and other | - | - | - | - | - | - | - | - | ||||||||||||||||
Total Non-Real Estate | - | - | - | - | - | - | - | - | ||||||||||||||||
Total | $ | 3,004 | $ | - | $ | 230 | $ | 3,234 | $ | 3,006 | $ | - | $ | 230 | $ | 3,236 |
Trouble Debt Restructured Loans Activity
Nine Months Ended September 30, 2014
|
||||||||||||||||||||||||
(in thousands) |
Beginning balance December 31, 2013
|
New TDRs
|
Charge-offs
post-
modification
|
Transferred to ORE
|
Paydowns
|
Construction to permanent financing |
Restructured
to market
terms
|
Ending balance
September 30, 2014
|
||||||||||||||||
Real Estate:
|
||||||||||||||||||||||||
Construction & land development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$ | - | $ | - | $ | - | ||||||||
Farmland
|
-
|
-
|
-
|
-
|
-
|
- | - | - | ||||||||||||||||
1 - 4 family
|
-
|
-
|
-
|
-
|
-
|
- | - | - | ||||||||||||||||
Multifamily
|
-
|
-
|
-
|
-
|
-
|
- | - | - | ||||||||||||||||
Non-farm non-residential
|
3,236
|
-
|
-
|
-
|
(2
|
) | - | - | 3,234 | |||||||||||||||
Total Real Estate
|
3,236
|
|
-
|
-
|
(2
|
) | - | - | 3,234 | |||||||||||||||
Non-Real Estate: | ||||||||||||||||||||||||
Agricultural
|
-
|
-
|
-
|
-
|
-
|
- | - | - | ||||||||||||||||
Commercial and industrial
|
-
|
-
|
-
|
-
|
-
|
- | - | - | ||||||||||||||||
Consumer and other
|
-
|
-
|
-
|
-
|
-
|
- | - | - | ||||||||||||||||
Total Non-Real Estate | - | - | - | - | - | - | - | - | ||||||||||||||||
Total Impaired Loans with no related allowance | $ | 3,236 | $ | - | $ | - | $ | - | $ | (2 | ) | $ | - | $ | - | $ | 3,234 |
(in thousands)
|
September 30, 2014 | December 31, 2013 | ||||
Real Estate Owned Acquired by Foreclosure: | ||||||
Residential | $ | 907 | $ | 1,803 | ||
Construction & land development | 126 | 754 | ||||
Non-farm non-residential | 952 | 800 | ||||
Total Other Real Estate Owned and Foreclosed Property | $ | 1,985 | $ | 3,357 |
Contract Amount
|
||||||
(in thousands)
|
September 30, 2014
|
December 31, 2013
|
||||
Commitments to Extend Credit
|
$
|
70,698 |
$
|
30,516
|
||
Unfunded Commitments under lines of credit
|
$
|
105,656 |
$
|
115,311
|
||
Commercial and Standby letters of credit
|
$
|
7,678 |
$
|
7,695
|
(in thousands)
|
Unrealized Gain (Loss) on Securities Available for Sale | ||
Accumulated Other Comprehensive (Loss) Income: | |||
Balance December 31, 2013
|
$ | (9,134 | ) |
Reclassification adjustments to net income: | |||
Realized gains on securities | (300 | ) | |
Provision for income taxes | 102 | ||
Unrealized gains arising during the period, net of tax | 8,091 | ||
Balance September 30, 2014 | $ | (1,241 | ) |
(in thousands)
|
Unrealized Gain (Loss) on Securities Available for Sale | ||
Accumulated Other Comprehensive (Loss) Income: | |||
Balance December 31, 2012
|
$ | 6,048 | |
Reclassification adjustments to net income: | |||
Realized gains on securities | (1,556 | ) | |
Provision for income taxes | 529 | ||
Unrealized losses arising during the period, net of tax | (10,937 | ) | |
Balance September 30, 2013 | $ | (5,916 | ) |
(in thousands)
|
September 30, 2014
|
December 31, 2013
|
||||
Available for Sale Securities Fair Value Measurements Using:
|
||||||
Level 1: Quoted Prices in Active Markets For Identical Assets
|
$
|
500 |
$
|
36,492 | ||
Level 2: Significant Other Observable Inputs
|
|
509,904 |
|
441,885 | ||
Level 3: Significant Unobservable Inputs
|
|
8,210 |
|
5,834 | ||
Securities available for sale measured at fair value | $ | 518,614 | $ | 484,211 |
(in thousands)
|
At September 30, 2014
|
At December 31, 2013
|
||||
Fair Value Measurements Using: Impaired Loans
|
||||||
Level 1: Quoted Prices in Active Markets For Identical Assets
|
$
|
- |
$
|
- | ||
Level 2: Significant Other Observable Inputs
|
|
2,646 |
|
9,282 | ||
Level 3: Significant Unobservable Inputs
|
|
12,354 |
|
14,823 | ||
Impaired loans measured at fair value | $ | 15,000 | $ | 24,105 | ||
|
||||||
Fair Value Measurements Using: Other Real Estate Owned
|
||||||
Level 1: Quoted Prices in Active Markets For Identical Assets
|
$
|
- |
$
|
- | ||
Level 2: Significant Other Observable Inputs
|
|
1,985 |
|
3,357 | ||
Level 3: Significant Unobservable Inputs
|
|
- |
|
- | ||
Other real estate owned measured at fair value | $ | 1,985 | $ | 3,357 |
September 30, 2014
|
December 31, 2013
|
|||||||||||
(in thousands) |
Carrying Value
|
Estimated Fair Value
|
Carrying Value
|
Estimated Fair Value
|
||||||||
Assets
|
||||||||||||
Cash and cash equivalents
|
$
|
27,547 |
$
|
27,547
|
$
|
61,484
|
$
|
61,484
|
||||
Securities, available for sale
|
518,614
|
518,614
|
484,211
|
484,211
|
||||||||
Securities, held to maturity
|
143,353 | 139,460 |
150,293
|
141,642
|
||||||||
Federal Home Loan Bank stock
|
1,928
|
1,928 |
1,835
|
1,835
|
||||||||
Loans, net
|
743,061 |
744,409
|
703,166
|
703,025
|
||||||||
Accrued interest receivable
|
6,752 | 6,752 |
6,258
|
6,258
|
||||||||
Liabilities
|
||||||||||||
Deposits
|
$
|
1,320,393
|
$
|
1,287,131
|
$
|
1,303,099
|
$
|
1,265,898
|
||||
Borrowings
|
13,905
|
13,905 |
6,288
|
6,288
|
||||||||
Accrued interest payable
|
2,144
|
2,144
|
2,364
|
2,364
|
● |
Total assets were $1.5 billion at September 30, 2014 and $1.4 billion as of December 31, 2013. Total deposits were $1.3 billion at each of September 30, 2014 and December 31, 2013. Total loans were $743.1 million at September 30, 2014, an increase of $39.9 million, or 5.7%, compared with December 31, 2013. Common shareholders’ equity was $97.0 million and $84.0 million at September 30, 2014 and December 31, 2013.
|
● |
Net income for the third quarter of 2014 and 2013 was $3.0 million and $2.3 million, respectively. Net income for the nine months ended September 30, 2014 was $8.4 million compared to $6.5 million for the nine months ended September 30, 2013. The increase in net income for 2014 was the result of higher loan interest income, lower interest expense, and lower loan provision expense compared to the same period in 2013.
|
● |
Net income available to common shareholders after preferred stock dividends was $2.9 million and $2.1 million for the third quarter of 2014 and 2013, respectively. Net income available to common shareholders after preferred stock dividends was $8.1 million and $5.9 million for the nine months ended September 30, 2014 and 2013, respectively. The dividends on preferred stock decreased $0.3 million to $0.3 million for the nine months ended September 30, 2014 when compared to $0.6 million for the same period in 2013. This decrease was the result of the Company qualifying for a lower dividend rate due to the increase in qualified small business loans as a part of the U.S. Treasury’s Small Business Lending Fund (“SBLF”) program. The Company is at the contractual minimum rate of 1.0% on the SBLF preferred stock.
|
● |
Earnings per common share were $0.45 and $0.34 for the third quarter of 2014 and 2013 and $1.29 and $0.93 for the nine months ended September 30, 2014 and 2013, respectively.
|
● |
Net interest income for the third quarter of 2014 was $10.9 million compared to $10.0 million for the same period in 2013. Net interest income for the nine months ended September 30, 2014 was $32.4 million compared to $29.3 million for the same period in 2013.
|
● | The provision for loan losses for the third quarter 2014 was $0.4 million compared to $0.3 million for the same period in 2013. The provision for loan losses for the first nine months of 2014 was $1.1 million compared to $2.0 million for the first nine months of 2013. |
● | The net interest margin for the first nine months of 2014 was 3.06% which was an increase of 17 basis points from the net interest margin of 2.89% for the first nine months of 2013. The Company attributes the improvement in the net interest margin to the gradual shift in interest earning asset balances from securities to loans and the continued reduction in interest expense over the last year. |
● |
Investment securities totaled $662.0 million at September 30, 2014, an increase of $27.5 million when compared to $634.5 million at December 31, 2013. At September 30, 2014, available for sale securities, at fair value, totaled $518.6 million, an increase of $34.4 million when compared to $484.2 million at December 31, 2013. At September 30, 2014, held to maturity securities, at amortized cost, totaled $143.4 million, a decrease of $6.9 million when compared to $150.3 million at December 31, 2013. The increase in investment securities was primary associated with the purchase of municipal securities and short term agency securities used to collateralize public funds.
|
● |
The net loan portfolio at September 30, 2014 totaled $734.4 million, a net increase of $41.6 million from the December 31, 2013 net loan portfolio of $692.8 million. Net loans are reduced by the allowance for loan losses which totaled $8.6 million at September 30, 2014 and $10.4 million at December 31, 2013. Total loans net of unearned income were $743.1 million at September 30, 2014 compared to $703.2 million at December 31, 2013.
|
● |
Total impaired loans decreased $4.7 million to $25.2 million at September 30, 2014 compared to $29.9 million at December 31, 2013.
|
● |
Return on average assets for the three months ended September 30, 2014 and September 30, 2013 was 0.80% and 0.64%, respectively. Return on average assets for the nine months ended September 30, 2014 and September 30, 2013 was 0.77% and 0.62%, respectively. Return on average common equity for the three months ended September 30, 2014 and September 30, 2013 was 11.71% and 10.12%, respectively. Return on average common equity for the nine months ended September 30, 2014 and September 30, 2013 was 11.64% and 8.55%, respectively. Return on average assets is calculated by dividing annualized net income before preferred dividends by average assets. Return on average common equity is calculated by dividing net income available to common shareholders by average common equity.
|
● |
Book value per common share was $15.41 as of September 30, 2014 compared to $13.61 as of September 30, 2013. The increase in book value is due to the changes in accumulated other comprehensive income/loss (“AOCI”) and an increase in retained earnings. Our AOCI is comprised of unrealized gains and losses on available for sale securities.
|
● |
The Company's Board of Directors declared cash dividends of $0.16 per common share in the third quarter of 2014 and 2013. Cash dividends declared for the nine months ended September 30, 2014 and 2013 were $0.48 per common share. The Company has paid 85 consecutive quarterly dividends as of September 30, 2014.
|
(in thousands)
|
September 30, 2014 |
December 31, 2013
|
||||
Nonaccrual loans:
|
||||||
Real Estate:
|
||||||
Construction and land development
|
$
|
488 |
$
|
73
|
||
Farmland
|
262
|
130
|
||||
1 - 4 family residential
|
4,637
|
4,248
|
||||
Multifamily
|
-
|
-
|
||||
Non-farm non-residential
|
5,514
|
7,539
|
||||
Total Real Estate | 10,901 | 11,990 | ||||
Non-Real Estate:
|
||||||
Agricultural
|
1,073
|
526
|
||||
Commercial and industrial
|
1,915
|
1,946
|
||||
Consumer and other
|
- |
23
|
||||
Total Non-Real Estate | 2,988 | 2,495 | ||||
Total nonaccrual loans
|
13,889
|
14,485
|
||||
Loans 90 days and greater delinquent & accruing:
|
||||||
Real Estate:
|
||||||
Construction and land development
|
-
|
-
|
||||
Farmland
|
-
|
-
|
||||
1 - 4 family residential
|
385
|
414
|
||||
Multifamily
|
-
|
-
|
||||
Non-farm non-residential
|
655 |
-
|
||||
Total Real Estate | 1,040 | 414 | ||||
Non-Real Estate:
|
||||||
Agricultural
|
-
|
-
|
||||
Commercial and industrial
|
-
|
-
|
||||
Consumer and other
|
-
|
-
|
||||
Total Non-Real Estate | - | - | ||||
Total loans 90 days and greater delinquent & accruing
|
1,040
|
414
|
||||
Total nonperforming loans
|
$ |
14,929
|
$ |
14,899
|
||
Real Estate Owned:
|
||||||
Real Estate Loans: | ||||||
Construction and land development
|
126
|
754
|
||||
Farmland
|
-
|
-
|
||||
1 - 4 family residential
|
907
|
1,803
|
||||
Multifamily
|
-
|
-
|
||||
Non-farm non-residential
|
952 |
800
|
||||
Total Real Estate | 1,985 | 3,357 | ||||
Non-Real Estate Loans:
|
||||||
Agricultural
|
-
|
-
|
||||
Commercial and industrial
|
-
|
-
|
||||
Consumer and other
|
-
|
-
|
||||
Total Non-Real Estate
|
-
|
-
|
||||
Total Real Estate Owned | 1,985 | 3,357 | ||||
Total nonperforming assets
|
$
|
16,914
|
$
|
18,256
|
||
Nonperforming assets to total loans | 2.26 | % | 2.59 | % | ||
Nonperforming assets to total assets | 1.15 | % | 1.27 | % |
(in thousands) | September 30, 2014 |
December 31, 2013
|
||||
Restructured Loans: | ||||||
In Compliance with Modified Terms |
$
|
3,004
|
$
|
3,006
|
||
Past Due 30 through 89 days and still accruing | - | - | ||||
Past Due 90 days and greater and still accruing | - | - | ||||
Nonaccrual | - | - | ||||
Restructured Loans that subsequently defaulted | 230 | 230 | ||||
Total Restructured Loans | $ | 3,234 | $ | 3,236 |
|
Ÿ
|
past due and non-performing assets;
|
|
Ÿ
|
specific internal analysis of loans requiring special attention;
|
|
Ÿ
|
the current level of regulatory classified and criticized assets and the associated risk factors with each;
|
|
Ÿ
|
changes in underwriting standards or lending procedures and policies;
|
|
Ÿ
|
charge-off and recovery practices;
|
|
Ÿ
|
national and local economic and business conditions;
|
|
Ÿ
|
nature and volume of loans;
|
|
Ÿ
|
overall portfolio quality;
|
|
Ÿ
|
adequacy of loan collateral;
|
|
Ÿ
|
quality of loan review system and degree of oversight by our board of directors;
|
|
Ÿ
|
competition and legal and regulatory requirements on borrowers;
|
|
Ÿ
|
examinations of the loan portfolio by federal and state regulatory agencies and examinations; and
|
|
Ÿ
|
review by our internal loan review department and independent accountants.
|
1. |
The Company charged off $1.0 million for a commercial and industrial loan that we reclassified as a non-farm non-residential loan as a result of the failure of a financial insurance business. The loan had a balance of $1.4 million with a specific reserve of $0.8 million at December 31, 2013. Analysis of the credit indicated that the loan balance should be charged down to the estimated collateral value of the commercial real estate. The loan is in non-accrual with a current principal balance of $0.3 million at September 30, 2014.
|
2. |
The Company charged off $0.8 million on a non-farm non-residential loan secured by a hotel. The non-accrual loan had further deterioration in value which required the additional write down. The Company foreclosed upon the borrower and the collateral was transferred to other real estate owned with a balance of $0.7 million at September 30, 2014.
|
3. |
The Company charged off $0.6 million on a second non-farm non-residential loan secured by a hotel. The non-accrual loan had further deterioration in value which required the additional write down. The loan is in non-accrual with a current principal balance of $2.9 million at September 30, 2014.
|
(in thousands)
|
September 30, 2014 | September 30, 2013 | ||||
Loans: | ||||||
Average outstanding balance
|
$
|
721,419 |
$
|
659,600
|
||
Balance at end of period
|
$
|
743,061
|
$
|
689,573
|
||
Allowance for Loan Losses:
|
||||||
Balance at beginning of year
|
$
|
10,355 |
$
|
10,342
|
||
Charge-offs
|
(3,082
|
)
|
(2,646
|
) | ||
Recoveries
|
300
|
439
|
||||
Provision | 1,054 | 2,011 | ||||
Balance at end of period
|
$
|
8,627 |
$
|
10,146
|
Average Balance | Average Balance | Increase (Decrease) | ||||||||||
(in thousands except for %)
|
Nine Months Ended September 30, 2014 |
Twelve Months Ended December 31, 2013
|
Amount |
Percent
|
||||||||
Noninterest-bearing demand
|
$
|
196,821
|
$
|
196,589
|
$
|
232
|
0.1 |
%
|
||||
Interest-bearing demand
|
390,099
|
334,573
|
55,526
|
16.6 |
%
|
|||||||
Savings
|
68,700
|
64,639
|
4,061
|
6.3 |
%
|
|||||||
Time
|
650,518
|
650,540
|
(22
|
) | 0.0 |
%
|
||||||
Total deposits
|
$
|
1,306,138
|
$
|
1,246,341
|
$
|
59,797
|
4.8 |
%
|
(in thousands except for %)
|
September 30, 2014 | December 31, 2013 | December 31, 2012 | December 31, 2011 | December 31, 2010 | |||||||||||||||
Total Public Funds | $ | 539,808 | $ | 515,578 | $ | 470,498 | $ | 431,905 | $ | 356,153 | ||||||||||
Total Deposits | $ | 1,320,393 | $ | 1,303,099 | $ | 1,252,612 | $ | 1,207,302 | $ | 1,007,383 | ||||||||||
Total Public Funds as a percent of Total Deposits | 40.9 | % | 39.6 | % | 37.6 | % | 35.8 | % | 35.4 | % |
(in thousands)
|
September 30, 2014 | ||
Time deposits of less than $100,000 | $ | 189,533 | |
Time deposits of $100,000 through $250,000 | 150,736 | ||
Time deposits of more than $250,000 | 313,528 | ||
Total Time Deposits | $ | 653,797 |
Three Months Ended September 30, 2014 | Three Months Ended September 30, 2013 | |||||||||||||||||
(in thousands except for %)
|
Average Balance | Interest | Yield/Rate | Average Balance | Interest | Yield/Rate | ||||||||||||
Assets
|
||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||
Interest-earning deposits with banks
|
$
|
24,316 |
$
|
16 | 0.28 |
%
|
$
|
51,950 |
$
|
33
|
0.25 |
%
|
||||||
Securities (including FHLB stock)
|
666,067 | 3,410 | 2.03 |
%
|
628,872
|
3,423 | 2.16 |
%
|
||||||||||
Federal funds sold
|
272 |
-
|
- |
%
|
1,166 |
-
|
- |
%
|
||||||||||
Loans held for sale | 49 | - | - | % | 105 | - | - | % | ||||||||||
Loans, net of unearned income
|
740,090 | 9,735 | 5.22 |
%
|
682,036 |
9,376
|
5.45
|
%
|
||||||||||
Total interest-earning assets
|
|
1,430,794 |
$
|
13,161 | 3.65 |
%
|
|
1,364,129
|
$
|
12,832
|
3.73 |
%
|
||||||
Noninterest-earning assets:
|
||||||||||||||||||
Cash and due from banks
|
|
8,804 |
|
9,037
|
||||||||||||||
Premises and equipment, net
|
20,225 |
19,902
|
||||||||||||||||
Other assets
|
9,429 |
12,623
|
||||||||||||||||
Total Assets
|
$
|
1,469,252 |
$
|
1,405,691
|
||||||||||||||
Liabilities and Shareholders' Equity
|
||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||
Demand deposits
|
$
|
375,718 |
$
|
321 | 0.34 |
%
|
$
|
337,697
|
$
|
291
|
0.34 |
%
|
||||||
Savings deposits
|
69,862 |
8
|
0.05 |
%
|
64,755
|
8 | 0.05 |
%
|
||||||||||
Time deposits
|
665,640 | 1,923 | 1.15 |
%
|
652,331
|
2,450
|
1.49 |
%
|
||||||||||
Borrowings
|
13,673 | 44 | 1.28 |
%
|
25,455
|
39
|
0.61 |
%
|
||||||||||
Total interest-bearing liabilities
|
|
1,124,893 |
$
|
2,296 | 0.81 |
%
|
|
1,080,238 |
$
|
2,788
|
1.02 |
%
|
||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||
Demand deposits
|
|
202,596 |
|
195,723
|
||||||||||||||
Other
|
5,077 |
5,653
|
||||||||||||||||
Total Liabilities
|
|
1,332,566 |
|
1,281,614
|
||||||||||||||
Shareholders' equity
|
136,686 |
124,077
|
||||||||||||||||
Total Liabilities and Shareholders' Equity
|
$
|
1,469,252 |
$
|
1,405,691
|
||||||||||||||
Net interest income
|
$
|
10,865 |
$
|
10,044
|
||||||||||||||
Net interest rate spread (1)
|
2.84 |
%
|
2.71 |
%
|
||||||||||||||
Net interest-earning assets (2)
|
$
|
305,901 |
$
|
283,891
|
||||||||||||||
Net interest margin (3), (4)
|
3.01 |
%
|
2.92 |
%
|
||||||||||||||
Average interest-earning assets to interest-bearing liabilities
|
127.19 |
%
|
126.28 |
%
|
||||||||||||||
(1) | Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. |
(2) | Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities. |
(3) | Net interest margin represents net interest income divided by average total interest-earning assets. |
(4) | The tax adjusted net interest margin was 3.05% and 2.94% for the above periods ended September 30, 2014 and 2013 respectively. A 35% tax rate was used to calculate the effect on securities income from tax exempt securities. |
Nine Months Ended September 30, 2014 | Nine Months Ended September 30, 2013 | |||||||||||||||||
(in thousands except for %)
|
Average Balance | Interest | Yield/Rate | Average Balance | Interest | Yield/Rate | ||||||||||||
Assets
|
||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||
Interest-earning deposits with banks
|
$
|
52,804 |
$
|
97
|
0.25 |
%
|
$
|
66,016
|
$
|
124
|
0.25 |
%
|
||||||
Securities (including FHLB stock)
|
640,785 | 10,034 | 2.09 |
%
|
635,314
|
10,027
|
2.14 |
%
|
||||||||||
Federal funds sold
|
313 |
-
|
- |
%
|
1,925
|
1
|
0.07 |
%
|
||||||||||
Loans held for sale
|
13 | - | - | % | 133 | - | - | % | ||||||||||
Loans, net of unearned income
|
721,406 | 29,220 | 5.42 |
%
|
659,600
|
27,661
|
5.61
|
%
|
||||||||||
Total interest-earning assets
|
|
1,415,321 |
$
|
39,351 | 3.72 |
%
|
|
1,362,988
|
$
|
37,813 | 3.72 |
%
|
||||||
Noninterest-earning assets:
|
||||||||||||||||||
Cash and due from banks
|
|
9,246 |
|
9,311
|
||||||||||||||
Premises and equipment, net
|
19,772 |
19,665
|
||||||||||||||||
Other assets
|
9,772 |
8,015
|
||||||||||||||||
Total Assets
|
$
|
1,454,111 |
$
|
1,399,979
|
||||||||||||||
Liabilities and Shareholders' Equity
|
||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||
Demand deposits
|
$
|
390,099 |
$
|
1,004 | 0.34 |
%
|
$
|
333,558
|
$
|
973
|
0.39 |
%
|
||||||
Savings deposits
|
68,700 |
24
|
0.05 |
%
|
64,334
|
33
|
0.07 |
%
|
||||||||||
Time deposits
|
650,518 | 5,848 | 1.20 |
%
|
651,043
|
7,441
|
1.53 |
%
|
||||||||||
Borrowings
|
10,420 | 102 | 1.31 |
%
|
19,287
|
114
|
0.79 |
%
|
||||||||||
Total interest-bearing liabilities
|
|
1,119,737 |
$
|
6,978 | 0.83 |
%
|
|
1,068,222
|
$
|
8,561
|
1.07 |
%
|
||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||
Demand deposits
|
|
196,821 |
|
195,643
|
||||||||||||||
Other
|
4,759 |
5,018
|
||||||||||||||||
Total Liabilities
|
|
1,321,317 |
|
1,268,883
|
||||||||||||||
Shareholders' equity
|
132,794 |
131,096
|
||||||||||||||||
Total Liabilities and Shareholders' Equity
|
$
|
1,454,111 |
$
|
1,399,979
|
||||||||||||||
Net interest income
|
$
|
32,373 |
$
|
29,252
|
||||||||||||||
Net interest rate spread (1)
|
2.89 |
%
|
2.65 |
%
|
||||||||||||||
Net interest-earning assets (2)
|
$
|
295,584 |
$
|
294,766
|
||||||||||||||
Net interest margin (3), (4)
|
3.06 |
%
|
2.89 |
%
|
||||||||||||||
Average interest-earning assets to interest-bearing liabilities
|
126.40 |
%
|
127.59 |
%
|
||||||||||||||
(1) | Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. |
(2) | Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities. |
(3) | Net interest margin represents net interest income divided by average total interest-earning assets. |
(4) | The tax adjusted net interest margin was 3.08% and 2.89% for the above periods ended September 30, 2014 and 2013 respectively. A 35% tax rate was used to calculate the effect on securities income from tax exempt securities. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
(in thousands) |
2014
|
2013
|
2014 | 2013 | ||||||||
Other noninterest expense:
|
||||||||||||
Legal and professional fees
|
$
|
468
|
$
|
729
|
$ | 1,344 | $ | 1,816 | ||||
Data processing
|
264 |
316
|
812 | 965 | ||||||||
Marketing and public relations
|
240
|
219
|
731 | 697 | ||||||||
Taxes - sales, capital, and franchise
|
171 |
176
|
517 | 499 | ||||||||
Operating supplies
|
113
|
98
|
305 | 385 | ||||||||
Travel and lodging
|
130 |
151
|
427 | 447 | ||||||||
Net costs from other real estate and repossessions
|
88 | 203 | 836 | 633 | ||||||||
Regulatory assessment | 289 | 376 | 901 | 1,334 | ||||||||
Other
|
935
|
996
|
2,765 | 2,896 | ||||||||
Total other expense
|
$
|
2,698
|
$
|
3,264
|
$ | 8,638 | $ | 9,672 |
"Well Capitalized Minimums"
|
As of September 30, 2014
|
As of December 31, 2013 | |||||||
Tier 1 Leverage Ratio
|
|||||||||
Consolidated
|
5.00
|
%
|
9.13
|
%
|
9.14 | % | |||
Bank
|
5.00
|
%
|
9.12
|
%
|
9.17 | % | |||
Tier 1 Risk-based Capital Ratio
|
|||||||||
Consolidated
|
6.00
|
%
|
13.45 |
%
|
13.61 | % | |||
Bank
|
6.00
|
%
|
13.44 |
%
|
13.66 | % | |||
Total Risk-based Capital Ratio
|
|||||||||
Consolidated
|
10.00
|
%
|
14.31
|
%
|
14.71 | % | |||
Bank
|
10.00
|
%
|
14.31
|
%
|
14.76 | % |
September 30, 2014
|
|||||||||||||||
Interest Sensitivity Within
|
|||||||||||||||
(in thousands except for %)
|
3 Months Or Less
|
Over 3 Months thru 12
Months
|
Total One Year
|
Over One Year
|
Total | ||||||||||
Earning Assets:
|
|||||||||||||||
Loans (including loans held for sale) | $ |
187,158
|
$
|
76,862 |
$
|
264,020
|
$
|
479,041
|
$
|
743,061 | |||||
Securities (including FHLB stock)
|
17,322
|
50,737
|
68,059
|
595,836
|
663,895
|
||||||||||
Federal Funds Sold
|
301 |
-
|
301
|
-
|
301
|
||||||||||
Other earning assets
|
29,062 |
-
|
29,062
|
-
|
29,062
|
||||||||||
Total earning assets
|
$
|
233,843
|
$
|
127,599
|
$
|
361,442
|
$
|
1,074,877 |
$
|
1,436,319
|
|||||
Source of Funds:
|
|||||||||||||||
Interest-bearing accounts:
|
|||||||||||||||
Demand deposits
|
$
|
390,672
|
$
|
-
|
$
|
390,672
|
$
|
-
|
$
|
390,672
|
|||||
Savings deposits
|
71,185
|
-
|
71,185
|
-
|
71,185 | ||||||||||
Time deposits
|
200,850
|
214,384
|
415,234
|
238,563
|
653,797
|
||||||||||
Short-term borrowings
|
10,500
|
1,800
|
12,300
|
-
|
12,300
|
||||||||||
Long-term borrowings
|
1,605
|
-
|
1,605
|
-
|
1,605
|
||||||||||
Noninterest-bearing, net
|
-
|
-
|
-
|
306,760
|
306,760
|
||||||||||
Total source of funds
|
$
|
674,812
|
$
|
216,184
|
$
|
890,996
|
$
|
545,323
|
$
|
1,436,319
|
|||||
Period gap
|
$
|
(440,969
|
)
|
$
|
(88,585
|
)
|
$
|
(529,554
|
)
|
$
|
529,554
|
||||
Cumulative gap
|
$
|
(440,969
|
)
|
$
|
(529,554
|
)
|
$
|
(529,554
|
)
|
$
|
-
|
||||
Cumulative gap as a percent of earning assets |
-30.7
|
% | -36.9 | % | -36.9 | % |
Intantaneous Changes in Interest Rates (In Basis Points)
|
Percent Change In Net Interest Income |
+400 | (18.76%) |
+300 | (11.67%) |
+200
|
(7.59%) |
+100 | (3.36%) |
Base | 0.00% |
-100 | (4.06%) |
Gradual Change in Interest Rates (In Basis Points) | Percent Change In Net Interest Income |
+400 | (3.79%) |
+300
|
(2.49%) |
+200
|
(1.52%) |
+100 | (0.77%) |
Base | 0.00% |
-100 | (0.93%) |
|
Ÿ
|
we record interest income only on the cash basis or cost-recovery method for nonaccrual loans and we do not record interest income for other real estate owned;
|
|
Ÿ
|
we must provide for probable loan losses through a current period charge to the provision for loan losses;
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non-interest expense increases when we write down the value of properties in our other real estate owned portfolio to reflect changing market values;
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there are legal fees associated with the resolution of problem assets, as well as carrying costs, such as taxes, insurance, and maintenance fees; and
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the resolution of non-performing assets requires the active involvement of management, which can distract them from more profitable activity.
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the base for FDIC insurance assessments has been changed to a bank’s average consolidated total assets minus average tangible equity, rather than upon its deposit base, while the FDIC’s authority to raise insurance premiums has been expanded;
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the current standard deposit insurance limit has been permanently raised to $250,000;
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the FDIC must raise the ratio of reserves to deposits from 1.15% to 1.35% for deposit insurance purposes by September 30, 2020 and to “offset the effect” of increased assessments on insured depository institutions with assets of less than $10.0 billion;
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the interchange fees payable on debit card transactions have been limited;
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there are multiple new provisions affecting corporate governance and executive compensation at all publicly traded companies; and
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all federal prohibitions on the ability of financial institutions to pay interest on commercial demand deposit accounts have been repealed.
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increased regulation of our industry;
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compliance with such regulation may increase our costs and limit our ability to pursue business opportunities;
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market developments and the resulting economic pressure on consumers may affect consumer confidence levels and may cause increases in delinquencies and default rates, which, among other effects, could affect our charge-offs and provision for loan losses. Competition in the industry could intensify as a result of the increasing consolidation of financial institutions in connection with the current market conditions;
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market disruptions make valuation even more difficult and subjective, and our ability to measure the fair value of our assets could be adversely affected. If we determine that a significant portion of our assets have values significantly below their recorded carrying value, we could recognize a material charge to earnings in the quarter in which such determination was made, our capital ratios would be adversely affected and a rating agency might downgrade our credit rating or put us on credit watch; and
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the downgrade of the United States government’s sovereign credit rating, any related rating agency action in the future, and the downgrade of the sovereign credit ratings for several European nations could negatively impact our business, financial condition and results of operations.
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Exhibit
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Number
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Exhibit
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31.1
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Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
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31.2
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Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
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32.1
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Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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32.2
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Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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101.SCH |
XBRL Taxonomy Extension Schema.
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101.CAL |
XBRL Taxonomy Extension Calculation Linkbase.
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101.DEF |
XBRL Taxonomy Extension Definition Linkbase.
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101.PRE |
XBRL Taxonomy Extension Presentation Linkbase.
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101.LAB |
XBRL Taxonomy Extension Label Linkbase.
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101.INS |
XBRL Instance Document.
|
FIRST GUARANTY BANCSHARES, INC.
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||
Date: November 14, 2014
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By: /s/ Alton B. Lewis
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Alton B. Lewis
|
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Principal Executive Officer
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Date: November 14, 2014
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By: /s/ Eric J. Dosch
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Eric J. Dosch
|
||
Principal Financial Officer
|
||
Secretary and Treasurer
|
1. | I have reviewed this Quarterly Report on Form 10-Q of First Guaranty Bancshares, Inc.; |
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves Management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
1.
|
I have reviewed this Quarterly Report on Form 10-Q of First Guaranty Bancshares, Inc.;
|
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves Management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Financial Instruments (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2014
|
Dec. 31, 2013
|
---|---|---|
Assets [Abstract] | ||
Fair Value | $ 518,614 | $ 484,211 |
Securities, held to maturity | 139,460 | 141,642 |
Accrued interest receivable | 6,752 | 6,258 |
Carrying Value [Member]
|
||
Assets [Abstract] | ||
Cash and cash equivalents | 27,547 | 61,484 |
Fair Value | 518,614 | 484,211 |
Securities, held to maturity | 143,353 | 150,293 |
Federal Home Loan Bank stock | 1,928 | 1,835 |
Loans, net | 743,061 | 703,166 |
Accrued interest receivable | 6,752 | 6,258 |
Liabilities [Abstract] | ||
Deposits | 1,320,393 | 1,303,099 |
Borrowings | 13,905 | 6,288 |
Accrued interest payable | 2,144 | 2,364 |
Estimated Fair Value [Member]
|
||
Assets [Abstract] | ||
Cash and cash equivalents | 27,547 | 61,484 |
Fair Value | 518,614 | 484,211 |
Securities, held to maturity | 139,460 | 141,642 |
Federal Home Loan Bank stock | 1,928 | 1,835 |
Loans, net | 744,409 | 703,025 |
Accrued interest receivable | 6,752 | 6,258 |
Liabilities [Abstract] | ||
Deposits | 1,287,131 | 1,265,898 |
Borrowings | 13,905 | 6,288 |
Accrued interest payable | $ 2,144 | $ 2,364 |
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