☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Oklahoma
|
20-0763496
|
|
( State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
1039 N.W. 63rd Street
|
73116-7361
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, $0.01 Par Value Per Share
|
BSVN
|
NASDAQ Global Select Market System
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☒ (Do not check if a smaller reporting company)
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☒
|
Page
|
||
PART I.
|
FINANCIAL INFORMATION
|
|
Item 1.
|
Financial Statements
|
|
3 |
||
4 |
||
5 |
||
6 |
||
7 |
||
Item 2.
|
27 | |
Item 3.
|
52
|
|
Item 4.
|
52
|
|
PART II.
|
OTHER INFORMATION
|
52 |
Item 1.
|
52 | |
Item 1A.
|
52 | |
Item 2.
|
52 | |
Item 6.
|
53 | |
54
|
Assets
|
September
30, 2019
(Unaudited)
|
December
31, 2018
|
||||||
Cash and due from banks
|
$
|
110,594
|
$
|
128,090
|
||||
Interest-bearing time deposits in other banks
|
31,890
|
31,759
|
||||||
Loans, net of allowance for loan losses of $7,841 and $7,832 at September 30, 2019 and December 31, 2018, respectively
|
666,755
|
592,078
|
||||||
Loans held for sale
|
-
|
512
|
||||||
Premises and equipment, net
|
8,395
|
7,753
|
||||||
Nonmarketable equity securities
|
1,072
|
1,055
|
||||||
Foreclosed assets held for sale
|
77
|
110
|
||||||
Goodwill and intangibles
|
1,840
|
1,995
|
||||||
Interest receivable and other assets
|
6,198
|
7,159
|
||||||
Total assets
|
$
|
826,821
|
$
|
770,511
|
||||
Liabilities and Shareholders’ Equity
|
||||||||
Deposits
|
||||||||
Noninterest-bearing
|
$
|
202,989
|
$
|
201,159
|
||||
Interest-bearing
|
519,145
|
474,744
|
||||||
Total deposits
|
722,134
|
675,903
|
||||||
Income taxes payable
|
-
|
1,913
|
||||||
Interest payable and other liabilities
|
4,072
|
4,229
|
||||||
Total liabilities
|
726,206
|
682,045
|
||||||
Shareholders’ equity
|
||||||||
Preferred stock, par value $0.01 per share, 1,000,000 shares authorized; none issued or outstanding
|
-
|
-
|
||||||
Common stock, non-voting, par value $0.01 per share, 20,000,000 shares authorized; none issued or outstanding
|
-
|
-
|
||||||
Common stock, $0.01 par value; 50,000,000 shares authorized; 10,057,506 shares issued and outstanding
|
101
|
102
|
||||||
Additional paid-in capital
|
92,353
|
80,275
|
||||||
Retained earnings
|
8,161
|
8,089
|
||||||
Total shareholders’ equity
|
100,615
|
88,466
|
||||||
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
826,821
|
$
|
770,511
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Interest Income
|
||||||||||||||||
Loans, including fees
|
$
|
12,179
|
$
|
11,082
|
$
|
35,902
|
$
|
32,490
|
||||||||
Interest-bearing time deposits in other banks
|
500
|
147
|
1,414
|
438
|
||||||||||||
Interest-bearing deposits in other banks
|
392
|
510
|
1,398
|
1,288
|
||||||||||||
Total interest income
|
13,071
|
11,739
|
38,714
|
34,216
|
||||||||||||
Interest Expense
|
||||||||||||||||
Deposits
|
2,471
|
1,881
|
7,178
|
4,940
|
||||||||||||
Other borrowings
|
-
|
57
|
-
|
175
|
||||||||||||
Total interest expense
|
2,471
|
1,938
|
7,178
|
5,115
|
||||||||||||
Net Interest Income
|
10,600
|
9,801
|
31,536
|
29,101
|
||||||||||||
Provision for Loan Losses
|
-
|
-
|
-
|
100
|
||||||||||||
Net Interest Income After Provision for Loan Losses
|
10,600
|
9,801
|
31,536
|
29,001
|
||||||||||||
Noninterest Income
|
||||||||||||||||
Secondary market income
|
69
|
95
|
146
|
173
|
||||||||||||
Service charges on deposit accounts
|
110
|
88
|
279
|
261
|
||||||||||||
Other
|
330
|
136
|
602
|
635
|
||||||||||||
Total noninterest income
|
509
|
319
|
1,027
|
1,069
|
||||||||||||
Noninterest Expense
|
||||||||||||||||
Salaries and employee benefits
|
14,256
|
2,082
|
18,792
|
6,077
|
||||||||||||
Furniture and equipment
|
229
|
182
|
606
|
491
|
||||||||||||
Occupancy
|
436
|
319
|
1,157
|
898
|
||||||||||||
Data and item processing
|
276
|
248
|
814
|
716
|
||||||||||||
Accounting, marketing and legal fees
|
218
|
74
|
507
|
218
|
||||||||||||
Regulatory assessments
|
31
|
145
|
94
|
396
|
||||||||||||
Advertising and public relations
|
71
|
63
|
349
|
413
|
||||||||||||
Travel, lodging and entertainment
|
153
|
260
|
287
|
618
|
||||||||||||
Other
|
402
|
432
|
1,269
|
1,200
|
||||||||||||
Total noninterest expense
|
16,072
|
3,805
|
23,875
|
11,027
|
||||||||||||
Income (Loss) Before Taxes
|
(4,963
|
)
|
6,315
|
8,688
|
19,043
|
|||||||||||
Income tax expense (benefit)
|
1,556
|
(395
|
)
|
4,965
|
(395
|
)
|
||||||||||
Net Income (Loss)
|
$
|
(6,519
|
)
|
$
|
6,710
|
$
|
3,723
|
$
|
19,438
|
|||||||
Earnings per common share - basic
|
$
|
(0.64
|
)
|
$
|
0.88
|
$
|
0.37
|
$
|
2.63
|
|||||||
Earnings per common share - diluted
|
(0.64
|
)
|
0.87
|
0.37
|
2.62
|
|||||||||||
Weighted average common shares outstanding - basic
|
10,149,007
|
7,634,239
|
10,174,528
|
7,404,350
|
||||||||||||
Weighted average common shares outstanding - diluted
|
10,161,778
|
7,669,348
|
10,176,360
|
7,416,182
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Common Stock (Shares)
|
||||||||||||||||
Balance at beginning of period
|
10,187,500
|
7,287,500
|
10,187,500
|
7,287,500
|
||||||||||||
Common stock issued
|
-
|
2,900,000
|
-
|
2,900,000
|
||||||||||||
Shares issued for restricted stock units
|
19,431
|
-
|
19,431
|
-
|
||||||||||||
Shares acquired and canceled
|
(149,425
|
)
|
-
|
(149,425
|
)
|
-
|
||||||||||
Balance at end of period
|
$
|
10,057,506
|
$
|
10,187,500
|
$
|
10,057,506
|
$
|
10,187,500
|
||||||||
Common Stock (Amount)
|
||||||||||||||||
Balance at beginning of period
|
$
|
102
|
$
|
73
|
$
|
102
|
$
|
73
|
||||||||
Shares issued, net of offering costs
|
-
|
29
|
-
|
29
|
||||||||||||
Shares acquired and canceled
|
(1
|
)
|
-
|
(1
|
)
|
-
|
||||||||||
Balance at end of period
|
$
|
101
|
$
|
102
|
$
|
101
|
$
|
102
|
||||||||
Additional Paid-in Capital
|
||||||||||||||||
Balance at beginning of period
|
$
|
80,604
|
$
|
6,987
|
$
|
80,275
|
$
|
6,987
|
||||||||
Capital contribution
|
-
|
137
|
-
|
137
|
||||||||||||
Shares issued, net of offering costs
|
-
|
50,125
|
-
|
50,125
|
||||||||||||
Reclassification of undistributed S Corporation earnings
|
-
|
22,872
|
-
|
22,872
|
||||||||||||
Stock-based compensation expense
|
11,749
|
15
|
12,078
|
15
|
||||||||||||
Balance at end of period
|
$
|
92,353
|
$
|
80,136
|
$
|
92,353
|
$
|
80,136
|
||||||||
Retained Earnings
|
||||||||||||||||
Balance at beginning of period
|
$
|
18,331
|
$
|
70,493
|
$
|
8,089
|
$
|
62,116
|
||||||||
Net income (loss)
|
(6,519
|
)
|
6,710
|
3,723
|
19,438
|
|||||||||||
Reclassification of undistributed S Corporation earnings
|
-
|
(22,872
|
)
|
-
|
(22,872
|
)
|
||||||||||
Common stock acquired and canceled
|
(2,645
|
)
|
-
|
(2,645
|
)
|
-
|
||||||||||
Cash dividends declared ($0.10, $0.60, $0.10, $7.71 per share)
|
(1,006
|
)
|
(51,804
|
)
|
(1,006
|
)
|
(56,155
|
)
|
||||||||
Balance at end of period
|
$
|
8,161
|
$
|
2,527
|
$
|
8,161
|
$
|
2,527
|
||||||||
Total shareholders' equity
|
$
|
100,615
|
$
|
82,765
|
$
|
100,615
|
$
|
82,765
|
Nine months ended
September 30,
|
||||||||
2019
|
2018
|
|||||||
Operating Activities
|
||||||||
Net income
|
$
|
3,723
|
$
|
19,438
|
||||
Items not requiring (providing) cash
|
||||||||
Depreciation and amortization
|
651
|
602
|
||||||
Provision for loan losses
|
-
|
100
|
||||||
Net increase on other real estate owned
|
-
|
(10
|
)
|
|||||
Gain on sales of loans
|
(146
|
)
|
(173
|
)
|
||||
Stock-based compensation expense
|
12,078
|
15
|
||||||
(Gain) loss on sale of premises and equipment
|
182
|
(138
|
)
|
|||||
Cash receipts from the sale of loans originated for sale
|
6,767
|
6,111
|
||||||
Cash disbursements for loans originated for sale
|
(6,109
|
)
|
(5,550
|
)
|
||||
(Gain) loss on sale of other real estate owned
|
(362
|
)
|
3
|
|||||
Deferred income tax benefit (expense)
|
176
|
(731
|
)
|
|||||
Changes in
|
||||||||
Interest receivable and other assets
|
785
|
(653
|
)
|
|||||
Interest payable and other liabilities
|
(3,076
|
)
|
1,108
|
|||||
Net cash provided by operating activities
|
14,669
|
20,122
|
||||||
Investing Activities
|
||||||||
Maturities of interest-bearing time deposits in other banks
|
12,606
|
1,393
|
||||||
Purchases of interest-bearing time deposits in other banks
|
(12,737
|
)
|
(992
|
)
|
||||
Net change in loans
|
(74,755
|
)
|
(21,914
|
)
|
||||
Purchases of premises and equipment
|
(1,697
|
)
|
-
|
|||||
Proceeds from sale of premises and equipment
|
377
|
1,526
|
||||||
Purchase of nonmarketable equity securities
|
(17
|
)
|
(6
|
)
|
||||
Proceeds from sale of foreclosed assets
|
473
|
47
|
||||||
Net cash used in investing activities
|
(75,750
|
)
|
(19,946
|
)
|
||||
Financing Activities
|
||||||||
Net change in deposits
|
46,231
|
38,482
|
||||||
Repayment of borrowed funds
|
-
|
(5,600
|
)
|
|||||
Cash distributions
|
-
|
(56,155
|
)
|
|||||
Capital injection
|
-
|
137
|
||||||
Common stock acquired and canceled
|
(2,646
|
)
|
-
|
|||||
Net change in common stock
|
-
|
50,154
|
||||||
Net cash provided by financing activities
|
43,585
|
27,018
|
||||||
(Decrease) Increase in Cash and Due from Banks
|
(17,496
|
)
|
27,194
|
|||||
Cash and Due from Banks, Beginning of Period
|
128,090
|
100,054
|
||||||
Cash and Due from Banks, End of Period
|
$
|
110,594
|
$
|
127,248
|
||||
Supplemental Disclosure of Cash Flows Information
|
||||||||
Interest paid
|
$
|
6,912
|
$
|
2,954
|
||||
Income taxes paid
|
$
|
5,458
|
$
|
-
|
||||
Dividends declared and not paid
|
$
|
1,006
|
$
|
-
|
||||
Non-cash stock contribution
|
$ |
11,627 |
||||||
Supplemental Disclosures of Non-Cash Investing Activities
|
||||||||
Foreclosed assets acquired in settlement of loans
|
$
|
78
|
$
|
50
|
Bank7 Corp.
Bank7 Corp.
Note 2: |
Change in Capital Structure
|
Bank7 Corp.
Note 3: |
Restriction on Cash and Due from Banks
|
Note 4: |
Earnings Per Share
|
For the three months
ended September 30,
|
For the nine months
ended September 30,
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||||
Numerator
|
||||||||||||||||
Net income (loss)
|
$
|
(6,519
|
)
|
$
|
6,710
|
$
|
3,723
|
$
|
19,438
|
|||||||
Denominator
|
||||||||||||||||
Denominator for basic earnings per common share
|
10,149,007
|
7,634,239
|
10,174,528
|
7,404,350
|
||||||||||||
Dilutive effect of stock compensation (1)
|
12,771
|
35,109
|
1,832
|
11,832
|
||||||||||||
Denominator for diluted earnings per share
|
10,161,778
|
7,669,348
|
10,176,360
|
7,416,182
|
||||||||||||
Earnings per common share
|
||||||||||||||||
Basic
|
$
|
(0.64
|
)
|
$
|
0.88
|
$
|
0.37
|
$
|
2.63
|
|||||||
Diluted
|
$
|
(0.64
|
)
|
$
|
0.87
|
$
|
0.37
|
$
|
2.62
|
(1) |
Nonqualified stock options outstanding of 163,000 and 130,000 have not been included in diluted earnings per share for the three and nine month periods ended September 30, 2019, respectively, because to do so would have been
antidilutive for those periods.
|
Note 5: |
Loans and Allowance for Loan Losses
|
September 30,
2019
|
December 31,
2018
|
|||||||
Construction & development
|
$
|
68,714
|
$
|
87,267
|
||||
1-4 family commercial
|
30,037
|
33,278
|
||||||
Commercial real estate - other
|
253,986
|
156,396
|
||||||
Total commercial real estate
|
352,737
|
276,941
|
||||||
Commercial & industrial
|
252,516
|
248,394
|
||||||
Agricultural
|
58,583
|
62,844
|
||||||
Consumer
|
12,194
|
13,723
|
||||||
Gross loans
|
676,030
|
601,902
|
||||||
Less allowance for loan losses
|
(7,841
|
)
|
(7,832
|
)
|
||||
Less deferred loan fees
|
(1,434
|
)
|
(1,992
|
)
|
||||
Net loans
|
$
|
666,755
|
$
|
592,078
|
Construction &
Development
|
1 - 4 Family
Commercial
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
|
||||||||||||||||||||||||||||
September 30, 2019
|
||||||||||||||||||||||||||||
Balance, beginning of period
|
$
|
1,031
|
$
|
448
|
$
|
2,329
|
$
|
3,171
|
$
|
695
|
$
|
162
|
$
|
7,836
|
||||||||||||||
|
||||||||||||||||||||||||||||
Charge-offs
|
-
|
(2
|
)
|
-
|
-
|
-
|
-
|
(2
|
)
|
|||||||||||||||||||
Recoveries
|
-
|
1
|
-
|
6
|
-
|
-
|
7
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net recoveries
|
-
|
(1
|
)
|
6
|
-
|
-
|
5
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Provision (credit) for loan losses
|
(234
|
)
|
(99
|
)
|
618
|
(248
|
)
|
(16
|
)
|
(21
|
)
|
-
|
||||||||||||||||
|
||||||||||||||||||||||||||||
Balance, end of period
|
$
|
797
|
$
|
348
|
$
|
2,947
|
$
|
2,929
|
$
|
679
|
$
|
141
|
$
|
7,841
|
Construction &
Development
|
1 - 4 Family
Commercial
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
September 30, 2018
|
||||||||||||||||||||||||||||
Balance, beginning of period
|
$
|
1,283
|
$
|
435
|
$
|
1,972
|
$
|
3,013
|
$
|
808
|
$
|
191
|
$
|
7,702
|
||||||||||||||
Charge-offs
|
-
|
(1
|
)
|
-
|
(13
|
)
|
-
|
-
|
(14
|
)
|
||||||||||||||||||
Recoveries
|
-
|
1
|
-
|
38
|
1
|
-
|
40
|
|||||||||||||||||||||
Net recoveries
|
-
|
-
|
-
|
25
|
1
|
-
|
26
|
|||||||||||||||||||||
Provision (credit) for loan losses
|
98
|
3
|
(67
|
)
|
(14
|
)
|
(17
|
)
|
(3
|
)
|
-
|
|||||||||||||||||
Balance, end of period
|
$
|
1,381
|
$
|
438
|
$
|
1,905
|
$
|
3,024
|
$
|
792
|
$
|
188
|
$
|
7,728
|
Construction &
Development
|
1 - 4 Family
Commercial
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
September 30, 2019
|
||||||||||||||||||||||||||||
Balance, beginning of period
|
$
|
1,136
|
$
|
433
|
$
|
2,035
|
$
|
3,231
|
$
|
818
|
$
|
179
|
$
|
7,832
|
||||||||||||||
Charge-offs
|
-
|
(2
|
)
|
-
|
(4
|
)
|
(11
|
)
|
-
|
(17
|
)
|
|||||||||||||||||
Recoveries
|
-
|
3
|
-
|
20
|
3
|
-
|
26
|
|||||||||||||||||||||
Net charge-offs
|
-
|
1
|
-
|
16
|
(8
|
)
|
-
|
9
|
||||||||||||||||||||
Provision (credit) for loan losses
|
(339
|
)
|
(86
|
)
|
912
|
(318
|
)
|
(131
|
)
|
(38
|
)
|
-
|
||||||||||||||||
Balance, end of period
|
$
|
797
|
$
|
348
|
$
|
2,947
|
$
|
2,929
|
$
|
679
|
$
|
141
|
$
|
7,841
|
Construction &
Development
|
1 - 4 Family
Commercial
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
September 30, 2018
|
||||||||||||||||||||||||||||
Balance, beginning of period
|
$
|
1,407
|
$
|
431
|
$
|
1,865
|
$
|
2,779
|
$
|
1,015
|
$
|
157
|
$
|
7,654
|
||||||||||||||
Charge-offs
|
-
|
(25
|
)
|
-
|
(74
|
)
|
-
|
-
|
(99
|
)
|
||||||||||||||||||
Recoveries
|
-
|
3
|
2
|
66
|
1
|
1
|
73
|
|||||||||||||||||||||
Net charge-offs
|
-
|
(22
|
)
|
2
|
(8
|
)
|
1
|
1
|
(26
|
)
|
||||||||||||||||||
Provision (credit) for loan losses
|
(26
|
)
|
29
|
38
|
253
|
(224
|
)
|
30
|
100
|
|||||||||||||||||||
Balance, end of period
|
$
|
1,381
|
$
|
438
|
$
|
1,905
|
$
|
3,024
|
$
|
792
|
$
|
188
|
$
|
7,728
|
Construction &
Development
|
1 - 4 Family
Commercial
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
September 30, 2019
|
||||||||||||||||||||||||||||
Allowance Balance
|
||||||||||||||||||||||||||||
Ending balance Individually evaluated for impairment
|
$
|
-
|
$
|
-
|
$
|
32
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
32
|
||||||||||||||
Collectively evaluated for impairment
|
797
|
348
|
2,915
|
2,929
|
679
|
141
|
7,809
|
|||||||||||||||||||||
Total
|
$
|
797
|
$
|
348
|
$
|
2,947
|
$
|
2,929
|
$
|
679
|
$
|
141
|
$
|
7,841
|
||||||||||||||
Gross Loans
|
||||||||||||||||||||||||||||
Ending balance Individually evaluated for impairment
|
$
|
-
|
$
|
-
|
$
|
4,075
|
$
|
4,143
|
$
|
3,518
|
$
|
-
|
$
|
11,736
|
||||||||||||||
Collectively evaluated for impairment
|
68,714
|
30,037
|
249,911
|
248,373
|
55,065
|
12,194
|
664,294
|
|||||||||||||||||||||
Total
|
$
|
68,714
|
$
|
30,037
|
$
|
253,986
|
$
|
252,516
|
$
|
58,583
|
$
|
12,194
|
$
|
676,030
|
December 31, 2018
|
||||||||||||||||||||||||||||
Allowance Balance
|
||||||||||||||||||||||||||||
Ending balance Individually evaluated for impairment
|
$
|
-
|
$
|
-
|
$
|
32
|
$
|
14
|
$
|
-
|
$
|
-
|
$
|
46
|
||||||||||||||
Collectively evaluated for impairment
|
1,136
|
433
|
2,003
|
3,217
|
818
|
179
|
7,786
|
|||||||||||||||||||||
Total
|
$
|
1,136
|
$
|
433
|
$
|
2,035
|
$
|
3,231
|
$
|
818
|
$
|
179
|
$
|
7,832
|
||||||||||||||
Gross Loans
|
||||||||||||||||||||||||||||
Ending balance Individually evaluated for impairment
|
$
|
-
|
$
|
115
|
$
|
484
|
$
|
7,381
|
$
|
1,097
|
$
|
-
|
$
|
9,077
|
||||||||||||||
Collectively evaluated for impairment
|
87,267
|
33,163
|
155,912
|
241,013
|
61,747
|
13,723
|
592,825
|
|||||||||||||||||||||
Total
|
$
|
87,267
|
$
|
33,278
|
$
|
156,396
|
$
|
248,394
|
$
|
62,844
|
$
|
13,723
|
$
|
601,902
|
• |
Grade 1 (Pass) – These loans generally conform to Bank policies, and are characterized by policy conforming advance rates on collateral, and have
well-defined repayment sources. In addition, these credits are extended to Borrowers and/or Guarantors with a strong balance sheet and either substantial liquidity or a reliable income history.
|
• |
Grade 2 (Watch) – These loans are still considered “Pass” credits; however, various factors such as industry stress, material changes in cash flow or financial conditions, or deficiencies in
loan documentation, or other risk issues determined by the Lending Officer, Commercial Loan Committee (CLC), or Credit Quality Committee (CQC) warrant a heightened sense and frequency of monitoring.
|
• |
Grade 3 (Special Mention) – These loans must have observable weaknesses or evidence imprudent handling or structural issues. The weaknesses require close attention and the remediation of
those weaknesses is necessary. No risk of probable loss exists. Credits in this category are expected to quickly migrate to a “2” or a “4” as this is viewed as a transitory loan grade.
|
• |
Grade 4 (Substandard) – These loans are not adequately protected by the sound worth and debt service capacity of the Borrower, but may be well secured. They have defined weaknesses relative
to cash flow, collateral, financial condition, or other factors that might jeopardize repayment of all of the principal and interest on a timely basis. There is the possibility that a future loss will occur if weaknesses are not
remediated.
|
Construction &
Development
|
1 - 4 Family
Commercial
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
September 30, 2019
|
||||||||||||||||||||||||||||
Grade
|
||||||||||||||||||||||||||||
1 (Pass)
|
$
|
66,939
|
$
|
29,426
|
$
|
244,096
|
$
|
227,650
|
$
|
52,841
|
$
|
12,194
|
$
|
633,146
|
||||||||||||||
2 (Watch)
|
1,775
|
611
|
3,769
|
7,592
|
95
|
-
|
13,842
|
|||||||||||||||||||||
3 (Special Mention)
|
-
|
-
|
2,046
|
13,131
|
2,129
|
-
|
17,306
|
|||||||||||||||||||||
4 (Substandard)
|
-
|
-
|
4,075
|
4,143
|
3,518
|
-
|
11,736
|
|||||||||||||||||||||
Total
|
$
|
68,714
|
$
|
30,037
|
$
|
253,986
|
$
|
252,516
|
$
|
58,583
|
$
|
12,194
|
$
|
676,030
|
Construction &
Development
|
1 - 4 Family
Commercial
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
December 31, 2018
|
||||||||||||||||||||||||||||
Grade
|
||||||||||||||||||||||||||||
1 (Pass)
|
$
|
84,485
|
$
|
29,942
|
$
|
154,353
|
$
|
204,671
|
$
|
57,782
|
$
|
13,723
|
$
|
544,956
|
||||||||||||||
2 (Watch)
|
2,782
|
3,221
|
1,559
|
36,342
|
758
|
-
|
44,662
|
|||||||||||||||||||||
3 (Special Mention)
|
-
|
-
|
-
|
-
|
3,207
|
-
|
3,207
|
|||||||||||||||||||||
4 (Substandard)
|
-
|
115
|
484
|
7,381
|
1,097
|
-
|
9,077
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Total
|
$
|
87,267
|
$
|
33,278
|
$
|
156,396
|
$
|
248,394
|
$
|
62,844
|
$
|
13,723
|
$
|
601,902
|
Past Due
|
Total Loans
|
|||||||||||||||||||||||||||
30–59
Days
|
60–89
Days
|
Greater than
90 Days
|
Total
|
Current
|
Total
Loans
|
> 90 Days &
Accruing
|
||||||||||||||||||||||
September 30, 2019
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
68,714
|
$
|
68,714
|
$
|
-
|
||||||||||||||
1 - 4 Family Real Estate
|
-
|
-
|
-
|
-
|
30,037
|
30,037
|
-
|
|||||||||||||||||||||
Commercial Real Estate - other
|
-
|
-
|
-
|
-
|
253,986
|
253,986
|
-
|
|||||||||||||||||||||
Commercial & industrial
|
-
|
-
|
14
|
14
|
252,502
|
252,516
|
14
|
|||||||||||||||||||||
Agricultural
|
62
|
-
|
1,625
|
1,687
|
56,896
|
58,583
|
598
|
|||||||||||||||||||||
Consumer
|
39
|
21
|
-
|
60
|
12,134
|
12,194
|
-
|
|||||||||||||||||||||
Total
|
$
|
101
|
$
|
21
|
$
|
1,639
|
$
|
1,761
|
$
|
674,269
|
$
|
676,030
|
$
|
612
|
December 31, 2018
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
87,267
|
$
|
87,267
|
$
|
-
|
||||||||||||||
1 - 4 Family Real Estate
|
8
|
-
|
-
|
8
|
33,270
|
33,278
|
-
|
|||||||||||||||||||||
Commercial Real Estate - other
|
-
|
-
|
-
|
-
|
156,396
|
156,396
|
-
|
|||||||||||||||||||||
Commercial & industrial
|
-
|
5
|
-
|
5
|
248,389
|
248,394
|
-
|
|||||||||||||||||||||
Agricultural
|
-
|
-
|
-
|
-
|
62,844
|
62,844
|
-
|
|||||||||||||||||||||
Consumer
|
41
|
-
|
-
|
41
|
13,682
|
13,723
|
-
|
|||||||||||||||||||||
Total
|
$
|
49
|
$
|
5
|
$
|
-
|
$
|
54
|
$
|
601,848
|
$
|
601,902
|
$
|
-
|
Unpaid
Principal
Balance
|
Recorded
Investment
with No
Allowance
|
Recorded
Investment
with an
Allowance
|
Total
Recorded
Investment
|
Related
Allowance
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
||||||||||||||||||||||||||||
Three Months Ended
September 30, 2019 |
Nine Months Ended
September 30, 2019 |
|||||||||||||||||||||||||||||||||||
September 30, 2019
|
||||||||||||||||||||||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||||||
1 - 4 Family Real Estate
|
-
|
-
|
-
|
-
|
-
|
3
|
-
|
277
|
-
|
|||||||||||||||||||||||||||
Commercial Real Estate - other
|
4,075
|
2,215
|
1,860
|
4,075
|
32
|
3,354
|
131
|
1,883
|
197
|
|||||||||||||||||||||||||||
Commercial & industrial
|
4,143
|
4,143
|
-
|
4,143
|
-
|
6,612
|
91
|
6,164
|
49
|
|||||||||||||||||||||||||||
Agricultural
|
3,518
|
3,518
|
-
|
3,518
|
-
|
2,421
|
(56
|
)
|
2,267
|
269
|
||||||||||||||||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
128
|
-
|
|||||||||||||||||||||||||||
Total
|
$
|
11,736
|
$
|
9,876
|
$
|
1,860
|
$
|
11,736
|
$
|
32
|
$
|
12,390
|
$
|
166
|
$
|
10,719
|
$
|
515
|
Three Months Ended
September 30, 2018
|
Nine Months Ended
September 30, 2018
|
|||||||||||||||||||||||||||||||||||
December 31, 2018
|
||||||||||||||||||||||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||||||
1 - 4 Family Real Estate
|
115
|
115
|
-
|
115
|
-
|
71
|
-
|
60
|
-
|
|||||||||||||||||||||||||||
Commercial Real Estate - other
|
1,990
|
1,506
|
484
|
1,990
|
32
|
436
|
11
|
470
|
29
|
|||||||||||||||||||||||||||
Commercial & industrial
|
7,614
|
7,359
|
22
|
7,381
|
14
|
8,678
|
140
|
6,882
|
424
|
|||||||||||||||||||||||||||
Agricultural
|
1,097
|
1,097
|
-
|
1,097
|
-
|
1,497
|
21
|
1,385
|
60
|
|||||||||||||||||||||||||||
Consumer
|
5
|
-
|
-
|
-
|
-
|
7
|
-
|
37
|
1
|
|||||||||||||||||||||||||||
Total
|
$
|
10,821
|
$
|
10,077
|
$
|
506
|
$
|
10,583
|
$
|
46
|
$
|
10,689
|
$
|
172
|
$
|
8,834
|
$
|
514
|
As of
|
||||||||
September 30,
2019
|
December 31,
2018
|
|||||||
Nonaccrual loans
|
$
|
2,887
|
$
|
2,615
|
||||
Troubled-debt restructurings (1)
|
749
|
-
|
||||||
Accruing loans 90 or more days past due
|
612
|
-
|
||||||
Total nonperforming loans
|
$
|
4,248
|
$
|
2,615
|
(1) |
$1.9 million and $501,000 of TDRs as of September 30, 2019 and December 31, 2018, respectively, are included in the nonaccrual loans balance in the line above
|
Note 6: |
Shareholders’ Equity
|
Nine Months Ended
September 30,
|
||||||||
2019
|
2018
|
|||||||
Number of shares repurchased
|
-
|
-
|
||||||
Average price of shares repurchased
|
$
|
-
|
$
|
-
|
||||
Shares remaining to be repurchased
|
500,000
|
-
|
Actual
|
Minimum
Capital Requirements
|
With Capital
Conservation Buffer
|
Minimum
To Be Well Capitalized
Under Prompt
Corrective Action
|
|||||||||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||||||||
As of September 30, 2019
|
||||||||||||||||||||||||||||||||
Total capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
$
|
106,615
|
16.24
|
%
|
$
|
52,535
|
8.00
|
%
|
$
|
68,952
|
10.50
|
%
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
$
|
106,580
|
16.25
|
%
|
$
|
52,455
|
8.00
|
%
|
$
|
68,847
|
10.50
|
%
|
$
|
65,568
|
10.00
|
%
|
||||||||||||||||
Tier I capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
$
|
98,774
|
15.04
|
%
|
$
|
39,401
|
6.00
|
%
|
$
|
55,818
|
8.50
|
%
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
$
|
98,739
|
15.06
|
%
|
$
|
39,341
|
6.00
|
%
|
$
|
55,733
|
8.50
|
%
|
$
|
52,455
|
8.00
|
%
|
||||||||||||||||
CET I capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
$
|
98,774
|
15.04
|
%
|
$
|
29,551
|
4.50
|
%
|
$
|
45,968
|
7.00
|
%
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
$
|
98,739
|
15.06
|
%
|
$
|
29,506
|
4.50
|
%
|
$
|
45,898
|
7.00
|
%
|
$
|
42,619
|
6.50
|
%
|
||||||||||||||||
Tier I capital to average assets
|
||||||||||||||||||||||||||||||||
Company
|
$
|
98,774
|
12.25
|
%
|
$
|
32,240
|
4.00
|
%
|
N/A
|
N/A
|
N/A
|
N/A
|
||||||||||||||||||||
Bank
|
$
|
98,739
|
12.27
|
%
|
$
|
32,229
|
4.00
|
%
|
N/A
|
N/A
|
$
|
40,286
|
5.00
|
%
|
As of December 31, 2018
|
||||||||||||||||||||||||||||||||
Total capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
$
|
92,693
|
15.86
|
%
|
$
|
46,751
|
8.00
|
%
|
$
|
57,709
|
9.875
|
%
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
$
|
93,704
|
16.03
|
%
|
$
|
46,751
|
8.00
|
%
|
$
|
57,709
|
9.875
|
%
|
$
|
58,439
|
10.00
|
%
|
||||||||||||||||
Tier I capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
$
|
85,382
|
14.61
|
%
|
$
|
35,063
|
6.00
|
%
|
$
|
46,021
|
7.875
|
%
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
$
|
86,393
|
14.78
|
%
|
$
|
35,063
|
6.00
|
%
|
$
|
46,021
|
7.875
|
%
|
$
|
46,751
|
8.00
|
%
|
||||||||||||||||
CET I capital to risk-weighted assets
|
||||||||||||||||||||||||||||||||
Company
|
$
|
85,382
|
14.61
|
%
|
$
|
26,298
|
4.50
|
%
|
$
|
37,255
|
6.375
|
%
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
$
|
86,393
|
14.78
|
%
|
$
|
26,298
|
4.50
|
%
|
$
|
37,255
|
6.375
|
%
|
$
|
37,985
|
6.50
|
%
|
||||||||||||||||
Tier I capital to average assets
|
||||||||||||||||||||||||||||||||
Company
|
$
|
85,382
|
11.13
|
%
|
$
|
30,684
|
4.00
|
%
|
N/A
|
N/A
|
N/A
|
N/A
|
||||||||||||||||||||
Bank
|
$
|
86,393
|
11.26
|
%
|
$
|
30,684
|
4.00
|
%
|
N/A
|
N/A
|
$
|
38,355
|
5.00
|
%
|
Capital Conservation Buffer
(as a % of risk-weighted assets)
|
Maximum Payout
(as a % of eligible retained income)
|
|
Greater than 2.5%
|
No payout limitations applies
|
|
≤2.5% and >1.875%
|
60%
|
|
≤1.875% and >1.25%
|
40%
|
|
≤1.25% and >0.625%
|
20%
|
|
≤0.625%
|
0%
|
Note 7: |
Related-Party Transactions
|
Balance
Beginning of
the Period
|
Additions
|
Collections/
Terminations
|
Balance
End of
the Period
|
|||||||||||||
For the nine months ended September 30, 2019
|
$
|
6,897
|
$
|
2,613
|
$
|
(4,585
|
)
|
$
|
4,925
|
|||||||
Year ended December 31, 2018
|
$
|
6,684
|
$
|
7,319
|
$
|
(7,106
|
)
|
$
|
6,897
|
Note 8: |
Employee Benefits
|
Options
|
Wgtd. Avg. Exercise
Price
|
Wgtd. Avg.
Remaining
Contractual Term
|
Aggregate
Intrinsic
Value
|
|||||||||||||
Nine Months Ended September 30, 2019
|
||||||||||||||||
Outstanding at December 31, 2018
|
150,000
|
$
|
19.00
|
|||||||||||||
Options Granted
|
20,500
|
16.98
|
||||||||||||||
Options Exercised
|
-
|
-
|
||||||||||||||
Options Forfeited
|
(7,500
|
)
|
19.00
|
|||||||||||||
Outstanding at September 30, 2019
|
163,000
|
$
|
18.75
|
9.04
|
$
|
37
|
||||||||||
Exercisable at September 30, 2019
|
35,625
|
-
|
-
|
Nine Months Ended
September 30, 2019
|
||||
Risk-free interest rate
|
2.48
|
%
|
||
Dividend yield
|
2.20
|
%
|
||
Stock price volatility
|
31.14
|
%
|
||
Expected term
|
7.01 yrs
|
Number of
Shares
|
Wgtd. Avg. Grant
Date Fair Value
|
|||||||
Outstanding at December 31, 2018
|
130,000
|
$
|
19.09
|
|||||
Shares granted
|
-
|
-
|
||||||
Shares settled
|
26,000
|
-
|
||||||
Shares forfeited
|
-
|
-
|
||||||
End of the period balance
|
104,000
|
$
|
19.09
|
Note 9: |
Disclosures About Fair Value of Assets and Liabilities
|
Level 1 |
Quoted prices in active markets for identical assets or liabilities
|
Level 2 |
Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market
data for substantially the full term of the assets or liabilities
|
Level 3 |
Unobservable inputs supported by little or no market activity and significant to the fair value of the assets or liabilities
|
|
Fair Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
|
||||||||||||||||
September 30, 2019
|
||||||||||||||||
Impaired loans (collateral- dependent)
|
$
|
1,828
|
$
|
-
|
$
|
-
|
$
|
1,828
|
||||||||
Foreclosed assets held for sale
|
$
|
77
|
$
|
-
|
$
|
-
|
$
|
77
|
||||||||
|
||||||||||||||||
December 31, 2018
|
||||||||||||||||
Impaired loans (collateral- dependent)
|
$
|
506
|
$
|
-
|
$
|
-
|
$
|
506
|
||||||||
Foreclosed assets held for sale
|
$
|
110
|
$
|
-
|
$
|
-
|
$
|
110
|
Fair Value
|
Valuation
Technique
|
Unobservable
Inputs
|
Weighted-
Average
|
||||||||
September 30, 2019
|
|||||||||||
|
|||||||||||
Collateral-dependent impaired loans
|
$
|
1,828
|
Appraisals from comparable properties
|
Estimated cost to sell
|
3-5
|
%
|
|||||
|
|||||||||||
Foreclosed assets held for sale
|
$
|
77
|
Appraisals from comparable properties
|
Estimated cost to sell
|
7-10
|
%
|
December 31, 2018
|
|||||||||||
|
|||||||||||
Collateral-dependent impaired loans
|
$
|
506
|
Appraisals from comparable properties
|
Estimated cost to sell
|
7-10
|
%
|
|||||
|
|
||||||||||
Foreclosed assets held for sale
|
$
|
110
|
Appraisals from comparable properties
|
Estimated cost to sell
|
7-10
|
%
|
|
Carrying
|
Fair Value Measurements
|
||||||||||||||||||
|
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||||
September 30, 2019
|
||||||||||||||||||||
|
||||||||||||||||||||
Financial Assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
110,594
|
$
|
110,594
|
$
|
-
|
$
|
-
|
$
|
110,594
|
||||||||||
Interest-bearing time deposits in other banks
|
$
|
31,890
|
$
|
-
|
$
|
31,891
|
$
|
-
|
$
|
31,891
|
||||||||||
Loans, net of allowance
|
$
|
666,755
|
$
|
-
|
$
|
664,763
|
$
|
1,860
|
$
|
666,623
|
||||||||||
Nonmarketable equity securities
|
$
|
1,072
|
$
|
-
|
$
|
1,072
|
$
|
-
|
$
|
1,072
|
||||||||||
Interest receivable
|
$
|
3,862
|
$
|
-
|
$
|
3,862
|
$
|
-
|
$
|
3,862
|
||||||||||
|
||||||||||||||||||||
Financial Liabilities
|
||||||||||||||||||||
Deposits
|
$
|
722,134
|
$
|
-
|
$
|
721,976
|
$
|
-
|
$
|
721,976
|
||||||||||
Interest payable
|
$
|
727
|
$
|
-
|
$
|
727
|
$
|
-
|
$
|
727
|
December 31, 2018
|
||||||||||||||||||||
Financial Assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
128,090
|
$
|
128,090
|
$
|
-
|
$
|
-
|
$
|
128,090
|
||||||||||
Interest-bearing time deposits in other banks
|
$
|
31,759
|
$
|
-
|
$
|
31,758
|
$
|
-
|
$
|
31,758
|
||||||||||
Loans, net of allowance
|
$
|
592,078
|
$
|
-
|
$
|
591,893
|
$
|
506
|
$
|
592,399
|
||||||||||
Mortgage loans held for sale
|
$
|
512
|
$
|
-
|
$
|
512
|
$
|
-
|
$
|
512
|
||||||||||
Nonmarketable equity securities
|
$
|
1,055
|
$
|
-
|
$
|
1,055
|
$
|
-
|
$
|
1,055
|
||||||||||
Interest receivable
|
$
|
4,538
|
$
|
-
|
$
|
4,538
|
$
|
-
|
$
|
4,538
|
||||||||||
Financial Liabilities
|
||||||||||||||||||||
Deposits
|
$
|
675,903
|
$
|
-
|
$
|
675,017
|
$
|
-
|
$
|
675,017
|
||||||||||
Interest payable
|
$
|
461
|
$
|
-
|
$
|
461
|
$
|
-
|
$
|
461
|
Note 10: |
Financial Instruments with Off-Balance Sheet Risk
|
|
September 30,
2019
|
December 31,
2018
|
||||||
|
||||||||
Commitments to extend credit
|
$
|
197,460
|
$
|
135,015
|
||||
Financial and performance standby letters of credit
|
2,559
|
1,078
|
||||||
|
||||||||
|
$
|
200,019
|
$
|
136,093
|
Note 11: |
Significant Estimates and Concentrations
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
(Dollars in thousands, except per share data)
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
Loan interest income (excluding loan fees)
|
||||||||||||||||
Total loan interest income, including loan fee income
|
$
|
12,179
|
$
|
11,082
|
$
|
35,902
|
$
|
32,490
|
||||||||
Loan fee income
|
(841
|
)
|
(943
|
)
|
(3,498
|
)
|
(3,893
|
)
|
||||||||
Loan interest income excluding loan fee income
|
$
|
11,338
|
$
|
10,139
|
$
|
32,404
|
$
|
28,597
|
||||||||
Average total loans
|
$
|
651,186
|
$
|
596,450
|
$
|
617,398
|
$
|
578,205
|
||||||||
Yield on loans (including loan fee income)
|
7.42
|
%
|
7.43
|
%
|
7.77
|
%
|
7.49
|
%
|
||||||||
Yield on loans (excluding loan fee income)
|
6.91
|
%
|
6.80
|
%
|
7.02
|
%
|
6.59
|
%
|
||||||||
Net interest margin (excluding loan fees)
|
||||||||||||||||
Net interest income
|
$
|
10,600
|
$
|
9,801
|
$
|
31,536
|
$
|
29,101
|
||||||||
Loan fee income
|
(841
|
)
|
(943
|
)
|
(3,498
|
)
|
(3,893
|
)
|
||||||||
Net interest income excluding loan fees
|
$
|
9,759
|
$
|
8,858
|
$
|
28,038
|
$
|
25,208
|
||||||||
Average earning assets
|
$
|
797,667
|
$
|
731,140
|
$
|
773,752
|
$
|
708,875
|
||||||||
Net interest margin (including loan fee income)
|
5.27
|
%
|
5.36
|
%
|
5.45
|
%
|
5.47
|
%
|
||||||||
Net interest margin (excluding loan fee income)
|
4.85
|
%
|
4.85
|
%
|
4.84
|
%
|
4.74
|
%
|
For the Nine Months Ended
September 30,
|
||||||||||||||||
2019
|
2018
|
$ Change
|
% Change
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Pro Forma Net Income
|
||||||||||||||||
Total Interest Income
|
$
|
38,714
|
$
|
34,216
|
$
|
4,498
|
13.14
|
%
|
||||||||
Total Interest Expense
|
7,178
|
5,115
|
2,063
|
40.33
|
||||||||||||
Net Interest Margin
|
31,536
|
29,101
|
2,435
|
8.37
|
||||||||||||
Provision for Loan Losses
|
$
|
-
|
$
|
100
|
$
|
(100
|
)
|
(100.00
|
%)
|
|||||||
Total Noninterest Income
|
$
|
1,027
|
$
|
1,069
|
$
|
(42
|
)
|
(3.89
|
%)
|
|||||||
Total Noninterest Expense
|
$
|
23,875
|
$
|
11,027
|
$
|
12,848
|
116.51
|
%
|
||||||||
Stock Transfer Compensation Expense (1)
|
(11,796
|
)
|
-
|
(11,796
|
)
|
100.00
|
||||||||||
Pro Forma Noninterest Expense
|
12,079
|
11,027
|
1,052
|
11.06
|
||||||||||||
Pro Forma Pre-Tax Income
|
$
|
20,485
|
$
|
19,043
|
$
|
1,442
|
7.57
|
%
|
||||||||
Pro Forma Income Tax Expense
|
$
|
5,107
|
$
|
4,764
|
$
|
343
|
7.21
|
%
|
||||||||
Pro Forma Net After-Tax Income
|
$
|
15,378
|
$
|
14,279
|
$
|
1,098
|
7.69
|
%
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
(Dollars in thousands, except per share data)
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
Pre-tax, pre-provision net earnings
|
||||||||||||||||
Net income before income taxes
|
$
|
(4,963
|
)
|
$
|
6,315
|
$
|
8,688
|
$
|
19,043
|
|||||||
Plus: Provision (reversal of) for loan losses
|
-
|
-
|
-
|
(100
|
)
|
|||||||||||
Pre-tax, pre-provision net earnings
|
$
|
(4,963
|
)
|
$
|
6,315
|
$
|
8,688
|
$
|
19,143
|
|||||||
Adjusted provision for income tax
|
||||||||||||||||
Net income before income taxes
|
$
|
(4,963
|
)
|
$
|
6,315
|
$
|
8,688
|
$
|
19,043
|
|||||||
Total effective adjusted tax rate
|
-31.4
|
%
|
-6.3
|
%
|
57.2
|
%
|
-2.1
|
%
|
||||||||
Adjusted provision for income taxes
|
$
|
1,556
|
$
|
(395
|
)
|
$
|
4,965
|
$
|
(395
|
)
|
||||||
Tax-adjusted net income
|
||||||||||||||||
Net income before income taxes
|
$
|
(4,963
|
)
|
$
|
6,315
|
$
|
8,688
|
$
|
19,043
|
|||||||
Adjusted provision for income taxes
|
1,556
|
(395
|
)
|
4,965
|
(395
|
)
|
||||||||||
Tax-adjusted net income
|
$
|
(6,519
|
)
|
$
|
6,710
|
$
|
3,723
|
$
|
19,438
|
|||||||
Tax-adjusted ratios
|
||||||||||||||||
Tax-adjusted net income (numerator)
|
$
|
(6,519
|
)
|
$
|
6,710
|
$
|
3,723
|
$
|
19,438
|
|||||||
Average assets (denominator)
|
$
|
806,440
|
$
|
742,283
|
$
|
782,694
|
$
|
718,474
|
||||||||
Tax-adjusted return on average assets
|
-3.21
|
%
|
3.59
|
%
|
0.64
|
%
|
3.62
|
%
|
||||||||
Average shareholders' equity (denominator)
|
$
|
100,012
|
$
|
80,064
|
$
|
95,655
|
$
|
75,710
|
||||||||
Tax-adjusted return on average shareholders' equity
|
-25.86
|
%
|
33.25
|
%
|
5.20
|
%
|
34.33
|
%
|
||||||||
Average tangible common equity (denominator)
|
$
|
98,145
|
$
|
77,986
|
$
|
93,736
|
$
|
73,582
|
||||||||
Tax-adjusted return on average tangible common equity
|
-26.35
|
%
|
34.13
|
%
|
5.31
|
%
|
35.32
|
%
|
||||||||
Pro Forma tax-adjusted net income and ratios
|
||||||||||||||||
Pro forma pre-tax income
|
$
|
6,834
|
$
|
20,485
|
||||||||||||
Pro forma income tax expense
|
1,698
|
5,107
|
||||||||||||||
Pro forma net after-tax income
|
$
|
5,136
|
$
|
15,378
|
||||||||||||
Pro forma tax-adjusted net income (numerator)
|
$
|
5,136
|
$
|
15,378
|
||||||||||||
Average assets (denominator)
|
$
|
806,440
|
$
|
782,694
|
||||||||||||
Pro forma tax-adjusted return on average assets
|
2.53
|
%
|
2.63
|
%
|
||||||||||||
Average shareholders' equity (denominator)
|
$
|
100,012
|
$
|
95,655
|
||||||||||||
Pro forma tax-adjusted return on average shareholders' equity
|
20.37
|
%
|
21.49
|
%
|
||||||||||||
Average tangible common equity (denominator)
|
$
|
98,145
|
$
|
93,736
|
||||||||||||
Pro forma tax-adjusted return on average tangible common equity
|
20.76
|
%
|
21.93
|
%
|
||||||||||||
Per share data
|
||||||||||||||||
Weighted average common shares outstanding basic (denominator)
|
10,149,007
|
7,634,239
|
10,174,528
|
7,404,350
|
||||||||||||
Tax-adjusted net income per common share--basic
|
$
|
(0.64
|
)
|
$
|
0.88
|
$
|
0.37
|
$
|
2.63
|
|||||||
Weighted average common shares outstanding diluted (denominator)
|
10,161,778
|
7,669,348
|
10,176,360
|
7,416,182
|
||||||||||||
Tax-adjusted net income per common share--diluted
|
$
|
(0.64
|
)
|
$
|
0.87
|
$
|
0.37
|
$
|
2.62
|
|||||||
Weighted average common shares outstanding basic
|
10,149,007
|
10,174,528
|
||||||||||||||
Plus: Weighted average shares retired related to stock award
|
40,605
|
13,684
|
||||||||||||||
Pro forma weighted average common shares outstanding basic (denominator)
|
10,189,612
|
10,188,212
|
||||||||||||||
Pro Forma tax-adjusted net income per common share--basic
|
$
|
0.50
|
$
|
1.50
|
||||||||||||
Weighted average common shares outstanding diluted
|
10,161,778
|
10,176,360
|
||||||||||||||
Plus: Weighted average shares retired related to stock award including dilution
|
15,063
|
9,960
|
||||||||||||||
Pro forma weighted average common shares outstanding diluted (denominator)
|
10,176,841
|
10,186,320
|
||||||||||||||
Pro forma tax-adjusted net income per common share--diluted
|
$
|
0.50
|
$
|
1.50
|
Tangible assets
|
||||||||
Total assets
|
$
|
826,349
|
$
|
751,173
|
||||
Less: Goodwill and intangibles
|
(1,840
|
)
|
(2,046
|
)
|
||||
Tangible assets
|
$
|
824,509
|
$
|
749,127
|
||||
Tangible shareholders' equity
|
||||||||
Total shareholders' equity
|
$
|
100,615
|
$
|
82,765
|
||||
Less: Goodwill and intangibles
|
(1,840
|
)
|
(2,046
|
)
|
||||
Tangible shareholders' equity
|
$
|
98,775
|
$
|
80,719
|
||||
Tangible shareholders' equity
|
||||||||
Tangible shareholders' equity (numerator)
|
$
|
98,775
|
$
|
80,719
|
||||
Tangible assets (denominator)
|
$
|
824,509
|
$
|
749,127
|
||||
Tangible common equity to tangible assets
|
11.98
|
%
|
10.78
|
%
|
||||
End of period common shares outstanding
|
10,057,506
|
10,187,500
|
||||||
Book value per share
|
$
|
10.00
|
$
|
8.12
|
||||
Tangible book value per share
|
$
|
9.82
|
$
|
7.92
|
||||
Total shareholders' equity to total assets
|
12.18
|
%
|
11.02
|
%
|
September 30,
|
||||||||
(Dollars in thousands, except per share data)
|
2019
|
2018
|
||||||
Tangible stockholders' equity
|
||||||||
Total stockholders' equity
|
$
|
100,615
|
$
|
82,765
|
||||
Less: Goodwill and other intangibles
|
(1,840
|
)
|
(2,046
|
)
|
||||
Tangible stockholders' equity
|
$
|
98,775
|
$
|
80,719
|
||||
Tangible assets
|
||||||||
Total assets
|
$
|
826,349
|
$
|
751,173
|
||||
Less: Goodwill and other intangibles
|
(1,840
|
)
|
(2,046
|
)
|
||||
Tangible assets
|
$
|
824,509
|
$
|
749,127
|
||||
Tangible stockholders' equity
|
||||||||
Tangible stockholders' equity (numerator)
|
$
|
98,775
|
$
|
80,719
|
||||
Tangible assets (denominator)
|
$
|
824,509
|
$
|
749,127
|
||||
Tangible common equity to tangible assets
|
11.98
|
%
|
10.78
|
%
|
||||
End of period common shares outstanding
|
10,057,506
|
10,187,500
|
||||||
Book value per share
|
$
|
10.00
|
$
|
8.12
|
||||
Tangible book value per share
|
$
|
9.82
|
$
|
7.92
|
||||
Total shareholders' equity to total assets
|
12.18
|
%
|
11.02
|
%
|
Net Interest Margin With Loan Fee Income
|
||||||||||||||||||||||||
For the Three Months Ended September 30,
|
||||||||||||||||||||||||
2019
|
2018
|
|||||||||||||||||||||||
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Short-term investments(1)
|
$
|
145,147
|
$
|
888
|
2.43
|
%
|
$
|
133,322
|
$
|
657
|
1.97
|
%
|
||||||||||||
Investment securities(2)
|
1,069
|
4
|
1.48
|
1,053
|
—
|
0.00
|
||||||||||||||||||
Loans held for sale
|
265
|
—
|
0.00
|
315
|
—
|
0.00
|
||||||||||||||||||
Total loans(3)
|
651,186
|
12,179
|
7.42
|
596,450
|
11,082
|
7.43
|
||||||||||||||||||
Total interest-earning assets
|
797,667
|
13,071
|
6.50
|
731,140
|
11,739
|
6.42
|
||||||||||||||||||
Noninterest-earning assets
|
8,773
|
11,143
|
||||||||||||||||||||||
Total assets
|
$
|
806,440
|
$
|
742,283
|
||||||||||||||||||||
Funding sources:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Transaction accounts
|
$
|
287,241
|
1,234
|
1.70
|
%
|
$
|
261,013
|
1,019
|
1.56
|
%
|
||||||||||||||
Time deposits
|
220,935
|
1,237
|
2.22
|
207,800
|
862
|
1.66
|
||||||||||||||||||
Total interest-bearing deposits
|
508,176
|
2,471
|
1.93
|
468,813
|
1,881
|
1.60
|
||||||||||||||||||
Other borrowings
|
—
|
—
|
0.00
|
4,487
|
57
|
5.08
|
||||||||||||||||||
Total interest-bearing liabilities
|
508,176
|
2,471
|
1.93
|
473,300
|
1,938
|
1.64
|
||||||||||||||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
Noninterest-bearing deposits
|
193,785
|
184,994
|
||||||||||||||||||||||
Other noninterest-bearing liabilities
|
4,467
|
3,925
|
||||||||||||||||||||||
Total noninterest-bearing liabilities
|
198,252
|
188,919
|
||||||||||||||||||||||
Shareholders’ equity
|
100,012
|
80,064
|
||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$
|
806,440
|
$
|
742,283
|
||||||||||||||||||||
Net interest income including loan fee income
|
$
|
10,600
|
$
|
9,801
|
||||||||||||||||||||
Net interest spread including loan fee income(4)
|
4.57
|
%
|
4.78
|
%
|
||||||||||||||||||||
Net interest margin including loan fee income
|
5.27
|
%
|
5.36
|
%
|
(1)
|
Includes income and average balances for fed funds sold, interest-earning deposits in banks and other miscellaneous interest-earning assets.
|
(2) |
Includes income and average balances for FHLB and FRB stock.
|
(3) |
Non-accrual loans are included in loans.
|
(4) |
Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
|
- |
Interest income on short term investments totaled $888,000 as compared to $657,000, an increase of $231,000 or 35.2% which was attributable to an $11.8 million increase, or 8.9%, in average balances of
interest bearing deposits at other financial institutions and an increase in yield of 46 basis points, or 21.8%.
|
- |
Total interest income on loans, including loan fee income, increased $1.1 million or 9.9% to $12.2 million which was attributable to a $54.7 million increase in the average balance of loans to $651.2
million as compared with the average balance of $596.5 million for the third quarter of 2018.
|
- |
Loan fees totaled $841,000, a decrease of $102,000 or 10.8%, which was attributable to nonrecurring loan fee income earned during the third quarter of 2018.
|
- |
Yield on our interest earning assets totaled 6.50%, an increase of 8 basis points or 1.2%, compared to yield on our interest earning assets of 6.42% for the third quarter of 2018; and
|
- |
Net interest margin for the third quarter of 2019 was 5.27% compared to 5.36% for the third quarter of 2018.
|
Net Interest Margin With Loan Fee Income
|
||||||||||||||||||||||||
For the Nine Months Ended September 30,
|
||||||||||||||||||||||||
2019
|
2018
|
|||||||||||||||||||||||
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Short-term investments(1)
|
$
|
155,073
|
$
|
2,785
|
2.40
|
%
|
$
|
129,413
|
$
|
1,726
|
1.78
|
%
|
||||||||||||
Investment securities(2)
|
1,062
|
27
|
3.40
|
1,051
|
—
|
0.00
|
||||||||||||||||||
Loans held for sale
|
219
|
—
|
0.00
|
206
|
—
|
0.00
|
||||||||||||||||||
Total loans(3)
|
617,398
|
35,902
|
7.77
|
578,205
|
32,490
|
7.49
|
||||||||||||||||||
Total interest-earning assets
|
773,752
|
38,714
|
6.69
|
708,875
|
34,216
|
6.44
|
||||||||||||||||||
Noninterest-earning assets
|
8,942
|
9,599
|
||||||||||||||||||||||
Total assets
|
$
|
782,694
|
$
|
718,474
|
||||||||||||||||||||
Funding sources:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Transaction accounts
|
$
|
289,306
|
3,924
|
1.81
|
%
|
$
|
235,088
|
2,425
|
1.38
|
%
|
||||||||||||||
Time deposits
|
206,575
|
3,254
|
2.11
|
227,885
|
2,515
|
1.47
|
||||||||||||||||||
Total interest-bearing deposits
|
495,881
|
7,178
|
1.94
|
462,973
|
4,940
|
1.42
|
||||||||||||||||||
Other borrowings
|
—
|
—
|
0.00
|
4,882
|
175
|
4.78
|
||||||||||||||||||
Total interest-bearing liabilities
|
495,881
|
7,178
|
1.94
|
467,855
|
5,115
|
1.46
|
||||||||||||||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
Noninterest-bearing deposits
|
186,379
|
171,185
|
||||||||||||||||||||||
Other noninterest-bearing liabilities
|
4,779
|
3,724
|
||||||||||||||||||||||
Total noninterest-bearing liabilities
|
191,158
|
174,909
|
||||||||||||||||||||||
Shareholders’ equity
|
95,655
|
75,710
|
||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$
|
782,694
|
$
|
718,474
|
||||||||||||||||||||
Net interest income including loan fee income
|
$
|
31,536
|
$
|
29,101
|
||||||||||||||||||||
Net interest spread including loan fee income(4)
|
4.75
|
%
|
4.98
|
%
|
||||||||||||||||||||
Net interest margin including loan fee income
|
5.45
|
%
|
5.47
|
%
|
(1) |
Includes income and average balances for fed funds sold, interest-earning deposits in banks and other miscellaneous interest-earning assets.
|
(2) |
Includes income and average balances for FHLB and FRB stock.
|
(3) |
Non-accrual loans are included in loans.
|
(4) |
Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
|
- |
Interest income on short term investments totaled $2.8 million as compared to $1.7 million, an increase of $1.1 million or 61.3% which was attributable to a $25.7 million, or 19.8%, increase in average
balances of interest bearing deposits at other financial institutions and a 62 basis point, or 35.0% increase in average yield.
|
- |
Total interest income on loans, including loan fee income, increased $3.4 million or 10.5% to $35.9 million which was attributable to a $39.2 million increase in the average balance of loans to $617.4
million as compared with the average balance of $578.2 million through the third quarter of 2018.
|
- |
Loan fees totaled $3.5 million, a decrease of $394,000 or 10.1%, which was attributable to nonrecurring loan fee income earned during the first nine months of 2018.
|
- |
Yield on our interest earning assets totaled 6.69%, an increase of 25 basis points or 3.9%, compared to yield on our interest earning assets of 6.44% through the third quarter of 2018, and
|
- |
Net interest margin through the third quarter of 2019 was 5.45% compared to 5.47% through the third quarter of 2018.
|
Net Interest Margin Excluding Loan Fee Income
|
||||||||||||||||||||||||
For the Three Months Ended September 30,
|
||||||||||||||||||||||||
2019
|
2018
|
|||||||||||||||||||||||
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Short-term investments(1)
|
$
|
145,147
|
$
|
888
|
2.43
|
%
|
$
|
133,322
|
$
|
657
|
1.97
|
%
|
||||||||||||
Investment securities(2)
|
1,069
|
4
|
1.48
|
1,053
|
—
|
0.00
|
||||||||||||||||||
Loans held for sale
|
265
|
—
|
0.00
|
315
|
—
|
0.00
|
||||||||||||||||||
Total loans(3)
|
651,186
|
11,338
|
6.91
|
596,450
|
10,139
|
6.80
|
||||||||||||||||||
Total interest-earning assets
|
797,667
|
12,230
|
6.08
|
731,140
|
10,796
|
5.91
|
||||||||||||||||||
Noninterest-earning assets
|
8,773
|
11,143
|
||||||||||||||||||||||
Total assets
|
$
|
806,440
|
$
|
742,283
|
||||||||||||||||||||
Funding sources:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Transaction accounts
|
$
|
287,241
|
1,234
|
1.70
|
%
|
$
|
261,013
|
1,019
|
1.56
|
%
|
||||||||||||||
Time deposits
|
220,935
|
1,237
|
2.22
|
207,800
|
862
|
1.66
|
||||||||||||||||||
Total interest-bearing deposits
|
508,176
|
2,471
|
1.93
|
468,813
|
1,881
|
1.60
|
||||||||||||||||||
Other borrowings
|
—
|
—
|
0.00
|
4,487
|
57
|
5.08
|
||||||||||||||||||
Total interest-bearing liabilities
|
508,176
|
2,471
|
1.93
|
473,300
|
1,938
|
1.64
|
||||||||||||||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
Noninterest-bearing deposits
|
193,785
|
184,994
|
||||||||||||||||||||||
Other noninterest-bearing liabilities
|
4,467
|
3,925
|
||||||||||||||||||||||
Total noninterest-bearing liabilities
|
198,252
|
188,919
|
||||||||||||||||||||||
Shareholders’ equity
|
100,012
|
80,064
|
||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$
|
806,440
|
$
|
742,283
|
||||||||||||||||||||
Net interest income excluding loan fee income
|
$
|
9,579
|
$
|
8,858
|
||||||||||||||||||||
Net interest spread excluding loan fee income(4)
|
4.15
|
%
|
4.27
|
%
|
||||||||||||||||||||
Net interest margin excluding loan fee income
|
4.85
|
%
|
4.85
|
%
|
(1) |
Includes income and average balances for fed funds sold, interest-earning deposits in banks and other miscellaneous interest-earning assets.
|
(2) |
Includes income and average balances for FHLB and FRB stock.
|
(3) |
Non-accrual loans are included in loans.
|
(4) |
Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
|
- |
Interest income on short term investments totaled $888,000 as compared to $657,000, an increase of $231,000 or 35.2% which was attributable to an $11.8 million, or 8.9%, increase in average balances of
interest bearing deposits at other financial institutions and a 46 basis point, or 23.1% increase in average yield.
|
- |
Total interest income on loans, excluding loan fee income, increased $1.2 million or 11.8% to $11.3 million which was attributable to a $54.7 million increase in the average balance of loans to $651.2
million as compared with the average balance of $596.5 million for the third quarter of 2018.
|
- |
Yield on loans, excluding loan fee income, totaled 6.91%, an increase of 11 basis points or 1.6%, compared to yield on loans excluding fee income of 6.80% for the third quarter of 2018, and
|
- |
Net interest margin, excluding loan fee income, for the third quarter of 2019 and 2018 was 4.85%.
|
Net Interest Margin Excluding Loan Fee Income
|
||||||||||||||||||||||||
For the Nine Months Ended September 30,
|
||||||||||||||||||||||||
2019
|
2018
|
|||||||||||||||||||||||
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Short-term investments(1)
|
$
|
155,073
|
$
|
2,785
|
2.40
|
%
|
$
|
129,413
|
$
|
1,726
|
1.78
|
%
|
||||||||||||
Investment securities(2)
|
1,062
|
27
|
3.40
|
1,051
|
—
|
0.00
|
||||||||||||||||||
Loans held for sale
|
219
|
—
|
0.00
|
206
|
—
|
0.00
|
||||||||||||||||||
Total loans(3)
|
617,398
|
32,404
|
7.02
|
578,205
|
28,597
|
6.59
|
||||||||||||||||||
Total interest-earning assets
|
773,752
|
35,216
|
6.09
|
708,875
|
30,323
|
5.70
|
||||||||||||||||||
Noninterest-earning assets
|
8,942
|
9,599
|
||||||||||||||||||||||
Total assets
|
$
|
782,694
|
$
|
718,474
|
||||||||||||||||||||
Funding sources:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Transaction accounts
|
$
|
289,306
|
3,924
|
1.81
|
%
|
$
|
235,088
|
2,425
|
1.38
|
%
|
||||||||||||||
Time deposits
|
206,575
|
3,254
|
2.11
|
227,885
|
2,515
|
1.47
|
||||||||||||||||||
Total interest-bearing deposits
|
495,881
|
7,178
|
1.94
|
462,973
|
4,940
|
1.42
|
||||||||||||||||||
Other borrowings
|
—
|
—
|
0.00
|
4,882
|
175
|
4.78
|
||||||||||||||||||
Total interest-bearing liabilities
|
495,881
|
7,178
|
1.94
|
467,855
|
5,115
|
1.46
|
||||||||||||||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
Noninterest-bearing deposits
|
186,379
|
171,185
|
||||||||||||||||||||||
Other noninterest-bearing liabilities
|
4,779
|
3,724
|
||||||||||||||||||||||
Total noninterest-bearing liabilities
|
191,158
|
174,909
|
||||||||||||||||||||||
Shareholders’ equity
|
95,655
|
75,710
|
||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$
|
782,694
|
$
|
718,474
|
||||||||||||||||||||
Net interest income excluding loan fee income
|
$
|
28,038
|
$
|
25,208
|
||||||||||||||||||||
Net interest spread excluding loan fee income(4)
|
4.15
|
%
|
4.25
|
%
|
||||||||||||||||||||
Net interest margin excluding loan fee income
|
4.84
|
%
|
4.74
|
%
|
(1) |
Includes income and average balances for fed funds sold, interest-earning deposits in banks and other miscellaneous interest-earning assets.
|
(2) |
Includes income and average balances for FHLB and FRB stock.
|
(3) |
Non-accrual loans are included in loans.
|
(4) |
Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
|
- |
Interest income on short term investments totaled $2.8 million as compared to $1.7 million, an increase of $1.1 million or 61.3% which was attributable to a $25.7 million, or 19.8%, increase in average
balances of interest bearing deposits at other financial institutions and a 62 basis point, or 35.0% increase in average yield.
|
- |
Total interest income on loans, excluding loan fee income, increased $3.8 million or 13.3% to $32.4 million which was attributable to a $39.2 million increase in the average balance of loans to $617.4
million as compared with the average balance of $578.2 million through the third quarter of 2018.
|
- |
Yield on loans, excluding loan fee income, totaled 7.02%, an increase of 42 basis points or 6.4%, compared to yield on loans excluding fee income of 6.59% for the same period in 2018, and
|
- |
Net interest margin, excluding loan fee income, through the third quarter of 2019 was 4.84% compared to 4.74% for the same period in 2018.
|
Analysis of Changes in Interest Income and
Expenses Including Loan Fee Income
|
||||||||||||
For the Three Months Ended
September 30, 2019 over 2018
|
||||||||||||
Change due to:
|
||||||||||||
Volume(1)
|
Rate(1)
|
Interest
Variance
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Increase (decrease) in interest income:
|
||||||||||||
Short-term investments
|
$
|
59
|
$
|
172
|
$
|
231
|
||||||
Investment securities
|
-
|
4
|
4
|
|||||||||
Total loans
|
1,025
|
72
|
1,097
|
|||||||||
Total increase in interest income
|
1,084
|
248
|
1,332
|
|||||||||
Increase (decrease) in interest expense:
|
||||||||||||
Deposits
|
||||||||||||
Transaction accounts
|
103
|
112
|
215
|
|||||||||
Time deposits
|
55
|
320
|
375
|
|||||||||
Total interest-bearing deposits
|
158
|
432
|
590
|
|||||||||
Other borrowings
|
(57
|
)
|
0
|
(57
|
)
|
|||||||
Total increase in interest expense
|
101
|
432
|
533
|
|||||||||
Increase (Decrease) in net interest income
|
$
|
983
|
$
|
(184
|
)
|
$
|
799
|
Analysis of Changes in Interest Income and
Expenses Including Loan Fee Income
|
||||||||||||
For the Nine Months Ended
September 30, 2019 over 2018
|
||||||||||||
Change due to:
|
||||||||||||
Volume(1)
|
Rate(1)
|
Interest
Variance
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Increase (decrease) in interest income:
|
||||||||||||
Short-term investments
|
$
|
342
|
$
|
717
|
$
|
1,059
|
||||||
Investment Securities
|
-
|
27
|
27
|
|||||||||
Total loans
|
2,196
|
1,216
|
3,412
|
|||||||||
Total increase in interest income
|
2,538
|
1,960
|
4,498
|
|||||||||
Increase (decrease) in interest expense:
|
||||||||||||
Deposits
|
||||||||||||
Transaction accounts
|
558
|
941
|
1,499
|
|||||||||
Time deposits
|
(235
|
)
|
974
|
739
|
||||||||
Total interest-bearing deposits
|
323
|
1,915
|
2,238
|
|||||||||
Other borrowings
|
(174
|
)
|
(1
|
)
|
(175
|
)
|
||||||
Total increase in interest expense
|
149
|
1,914
|
2,063
|
|||||||||
Increase (Decrease) in net interest income
|
$
|
2,389
|
$
|
46
|
$
|
2,435
|
(1) |
Variances attributable to both volume and rate are allocated on a consistent basis between rate and volume based on the absolute value of the variances in each category.
|
For the Three Months Ended
September 30,
|
||||||||||||||||
2019
|
2018
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Noninterest income:
|
||||||||||||||||
Service charges on deposit accounts
|
$
|
110
|
$
|
88
|
$
|
22
|
25.00
|
%
|
||||||||
Secondary market income
|
69
|
95
|
(26
|
)
|
(27.37
|
)
|
||||||||||
Other income and fees
|
330
|
136
|
194
|
142.65
|
||||||||||||
Total noninterest income
|
$
|
509
|
$
|
319
|
$
|
190
|
59.56
|
%
|
For the Nine Months Ended
September 30,
|
||||||||||||||||
2019
|
2018
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Noninterest income:
|
||||||||||||||||
Service charges on deposit accounts
|
$
|
279
|
$
|
261
|
$
|
18
|
6.90
|
%
|
||||||||
Secondary market income
|
146
|
173
|
(27
|
)
|
(15.61
|
)
|
||||||||||
Other income and fees
|
602
|
635
|
(33
|
)
|
(5.20
|
)
|
||||||||||
Total noninterest income
|
$
|
1,027
|
$
|
1,069
|
$
|
(42
|
)
|
(3.93
|
%)
|
For the Three Months Ended
September 30,
|
||||||||||||||||
2019
|
2018
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Noninterest expense:
|
||||||||||||||||
Salaries and employee benefits
|
$
|
14,256
|
$
|
2,082
|
$
|
12,174
|
584.73
|
%
|
||||||||
Furniture and equipment
|
229
|
182
|
47
|
25.82
|
||||||||||||
Occupancy
|
436
|
319
|
117
|
36.68
|
||||||||||||
Data and item processing
|
276
|
248
|
28
|
11.29
|
||||||||||||
Accounting, legal and professional fees
|
218
|
74
|
144
|
194.59
|
||||||||||||
Regulatory assessments
|
31
|
145
|
(114
|
)
|
(78.62
|
)
|
||||||||||
Advertising and public relations
|
71
|
63
|
8
|
12.70
|
||||||||||||
Travel, lodging and entertainment
|
153
|
260
|
(107
|
)
|
(41.15
|
)
|
||||||||||
Other expense
|
402
|
432
|
(30
|
)
|
(6.94
|
)
|
||||||||||
Total noninterest expense
|
$
|
16,072
|
$
|
3,805
|
$
|
12,267
|
322.39
|
%
|
For the Nine Months Ended
September 30,
|
||||||||||||||||
2019
|
2018
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Noninterest expense:
|
||||||||||||||||
Salaries and employee benefits
|
$
|
18,792
|
$
|
6,077
|
$
|
12,715
|
209.23
|
%
|
||||||||
Furniture and equipment
|
606
|
491
|
115
|
23.42
|
||||||||||||
Occupancy
|
1,157
|
898
|
259
|
28.84
|
||||||||||||
Data and item processing
|
814
|
716
|
98
|
13.69
|
||||||||||||
Accounting, legal and professional fees
|
507
|
218
|
289
|
132.57
|
||||||||||||
Regulatory assessments
|
94
|
396
|
(302
|
)
|
(76.26
|
)
|
||||||||||
Advertising and public relations
|
349
|
413
|
(64
|
)
|
(15.50
|
)
|
||||||||||
Travel, lodging and entertainment
|
287
|
618
|
(331
|
)
|
(53.56
|
)
|
||||||||||
Other expense
|
1,269
|
1,200
|
69
|
5.75
|
||||||||||||
Total noninterest expense
|
$
|
23,875
|
$
|
11,027
|
$
|
12,848
|
116.51
|
%
|
As of September 30,
|
As of December 31,
|
|||||||||||||||
2019
|
2018
|
|||||||||||||||
Amount
|
% of Total
|
Amount
|
% of Total
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Construction & development
|
$
|
68,714
|
10.2
|
%
|
$
|
87,267
|
14.5
|
%
|
||||||||
1-4 family commercial
|
30,037
|
4.4
|
33,278
|
5.5
|
||||||||||||
Commercial real estate – other
|
253,986
|
37.6
|
156,396
|
26.0
|
||||||||||||
Total commercial real estate
|
352,737
|
52.2
|
276,941
|
46.0
|
||||||||||||
Commercial & industrial
|
252,516
|
37.3
|
248,394
|
41.3
|
||||||||||||
Agricultural
|
58,583
|
8.7
|
62,844
|
10.4
|
||||||||||||
Consumer
|
12,194
|
1.8
|
13,723
|
2.3
|
||||||||||||
Gross loans
|
676,030
|
100.0
|
%
|
601,902
|
100.0
|
%
|
||||||||||
Less unearned income, net
|
(1,434
|
)
|
(1,992
|
)
|
||||||||||||
Total loans
|
674,596
|
599,910
|
||||||||||||||
Allowance for loan and lease losses
|
(7,841
|
)
|
(7,832
|
)
|
||||||||||||
Net loans
|
$
|
666,755
|
$
|
592,078
|
As of September 30, 2019
|
||||||||||||||||||||||||||||
Due in One Year or Less
|
Due after One Year
Through Five Years
|
Due after Five Years
|
||||||||||||||||||||||||||
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Total
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
187
|
$
|
28,283
|
$
|
821
|
$
|
39,423
|
$
|
—
|
$
|
—
|
$
|
68,714
|
||||||||||||||
1-4 family commercial
|
357
|
9,893
|
3,949
|
15,066
|
44
|
727
|
30,036
|
|||||||||||||||||||||
Commercial real estate – other
|
1,851
|
18,927
|
12,430
|
215,320
|
353
|
5,105
|
253,986
|
|||||||||||||||||||||
Total commercial real estate
|
2,395
|
57,103
|
17,200
|
269,809
|
397
|
5,832
|
352,736
|
|||||||||||||||||||||
Commercial & industrial
|
11,596
|
153,277
|
8,751
|
71,849
|
13
|
7,031
|
252,517
|
|||||||||||||||||||||
Agricultural
|
4,313
|
36,108
|
2,898
|
11,852
|
1,443
|
1,968
|
58,582
|
|||||||||||||||||||||
Consumer
|
2,577
|
—
|
4,754
|
558
|
3,871
|
435
|
12,195
|
|||||||||||||||||||||
Gross loans
|
$
|
20,881
|
$
|
246,488
|
$
|
33,603
|
$
|
354,068
|
$
|
5,724
|
$
|
15,266
|
$
|
676,030
|
As of December 31, 2018
|
||||||||||||||||||||||||||||
Due in One Year or Less
|
Due after One Year
Through Five Years
|
Due after Five Years
|
||||||||||||||||||||||||||
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Total
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
741
|
$
|
29,412
|
$
|
617
|
$
|
56,497
|
$
|
—
|
$
|
—
|
$
|
87,267
|
||||||||||||||
1-4 family commercial
|
682
|
19,866
|
1,643
|
10,934
|
—
|
153
|
33,278
|
|||||||||||||||||||||
Commercial real estate – other
|
457
|
14,280
|
283
|
134,090
|
2,197
|
5,089
|
156,396
|
|||||||||||||||||||||
Total commercial real estate
|
1,880
|
63,558
|
2,543
|
201,521
|
2,197
|
5,242
|
276,941
|
|||||||||||||||||||||
Commercial & industrial
|
13,725
|
153,891
|
7,878
|
66,631
|
14
|
6,255
|
248,394
|
|||||||||||||||||||||
Agricultural
|
4,474
|
32,496
|
4,084
|
17,669
|
1,374
|
2,747
|
62,844
|
|||||||||||||||||||||
Consumer
|
2,688
|
—
|
5,443
|
50
|
4,453
|
1,089
|
13,723
|
|||||||||||||||||||||
Gross loans
|
$
|
22,767
|
$
|
249,945
|
$
|
19,948
|
$
|
285,871
|
$
|
8,038
|
$
|
15,333
|
$
|
601,902
|
For the Nine Months Ended
|
||||||||
September 30,
2019
|
September 30,
2018
|
|||||||
(Dollars in thousands)
|
||||||||
Balance at beginning of the period
|
$
|
7,832
|
$
|
7,654
|
||||
Provision for loan losses
|
—
|
100
|
||||||
Charge-offs:
|
||||||||
Construction & development
|
—
|
—
|
||||||
1-4 family commercial
|
(2
|
)
|
(25
|
)
|
||||
Commercial real estate – other
|
—
|
—
|
||||||
Commercial & industrial
|
(4
|
)
|
(74
|
)
|
||||
Agricultural
|
(11
|
)
|
—
|
|||||
Consumer
|
—
|
—
|
||||||
Total charge-offs
|
(17
|
)
|
(99
|
)
|
||||
Recoveries:
|
||||||||
Construction & development
|
—
|
—
|
||||||
1-4 family commercial
|
3
|
3
|
||||||
Commercial real estate – other
|
—
|
2
|
||||||
Commercial & industrial
|
20
|
66
|
||||||
Agricultural
|
3
|
1
|
||||||
Consumer
|
—
|
1
|
||||||
Total recoveries
|
26
|
73
|
||||||
Net recoveries (charge-offs)
|
9
|
(26
|
)
|
|||||
Balance at end of the period
|
$
|
7,841
|
$
|
7,728
|
As of September 30,
|
As of December 31,
|
|||||||||||||||
2019
|
2018
|
|||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Construction & development
|
$
|
797
|
10.16
|
%
|
$
|
1,136
|
14.50
|
%
|
||||||||
1-4 family commercial
|
348
|
4.45
|
433
|
5.53
|
||||||||||||
Commercial real estate - other
|
2,947
|
37.58
|
2,035
|
25.98
|
||||||||||||
Commercial & industrial
|
2,929
|
37.35
|
3,231
|
41.26
|
||||||||||||
Agricultural
|
679
|
8.66
|
818
|
10.44
|
||||||||||||
Consumer
|
141
|
1.80
|
179
|
2.29
|
||||||||||||
Total
|
$
|
7,841
|
100.0
|
%
|
$
|
7,832
|
100.0
|
%
|
As of
September 30,
|
As of
December 31,
|
|||||||
2019
|
2018
|
|||||||
(Dollars in thousands)
|
||||||||
Nonaccrual loans
|
$
|
2,887
|
$
|
2,615
|
||||
Troubled debt restructurings (1)
|
749
|
—
|
||||||
Accruing loans 90 or more days past due
|
612
|
—
|
||||||
Total nonperforming loans
|
4,248
|
2,615
|
||||||
Other real estate owned
|
77
|
110
|
||||||
Total nonperforming assets
|
$
|
4,325
|
$
|
2,725
|
||||
Ratio of nonperforming loans to total loans
|
0.63
|
%
|
0.44
|
%
|
||||
Ratio of nonperforming assets to total assets
|
0.52
|
%
|
0.35
|
%
|
(1) |
$1.86 million and $501,000 of TDRs as of September 30, 2019 and December 31, 2018, respectively, are included in the nonaccrual loans balance in the line above
|
As of September 30, 2019
|
||||||||||||||||||||||||||||
Loans
30-59 days
past due
|
Loans
60-89 days
past due
|
Loans
90+ days
past due
|
Total
Loans 90+
days and
accruing
|
Total past
due
Loans
|
Current
|
Gross
Loans
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
68,714
|
$
|
68,714
|
||||||||||||||
1-4 family commercial
|
—
|
—
|
—
|
—
|
—
|
30,037
|
30,037
|
|||||||||||||||||||||
Commercial real estate - other
|
—
|
—
|
—
|
—
|
—
|
253,986
|
253,986
|
|||||||||||||||||||||
Commercial & industrial
|
—
|
—
|
14
|
14
|
14
|
252,502
|
252,516
|
|||||||||||||||||||||
Agricultural
|
62
|
—
|
1,625
|
598
|
1,687
|
56,986
|
58,583
|
|||||||||||||||||||||
Consumer
|
39
|
21
|
—
|
—
|
60
|
12,134
|
12,194
|
|||||||||||||||||||||
Total
|
$
|
101
|
$
|
21
|
$
|
1,639
|
$
|
612
|
$
|
1,761
|
$
|
674,269
|
$
|
676,030
|
As of December 31, 2018
|
||||||||||||||||||||||||||||
Loans
30-59 days
past due
|
Loans
60-89 days
past due
|
Loans
90+ days
past due
|
Total
Loans 90+
days and
accruing
|
Total past
due
Loans
|
Current
|
Gross
Loans
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
87,267
|
$
|
87,267
|
||||||||||||||
1-4 family commercial
|
8
|
—
|
—
|
—
|
8
|
33,270
|
33,278
|
|||||||||||||||||||||
Commercial real estate - other
|
—
|
—
|
—
|
—
|
—
|
156,396
|
156,396
|
|||||||||||||||||||||
Commercial & industrial
|
—
|
5
|
—
|
—
|
5
|
248,389
|
248,394
|
|||||||||||||||||||||
Agricultural
|
—
|
—
|
—
|
—
|
—
|
62,844
|
62,844
|
|||||||||||||||||||||
Consumer
|
41
|
—
|
—
|
—
|
41
|
13,682
|
13,723
|
|||||||||||||||||||||
Total
|
$
|
49
|
$
|
5
|
$
|
—
|
$
|
—
|
$
|
54
|
$
|
601,848
|
$
|
601,902
|
As of September 30, 2019
|
||||||||||||||||||||
Pass
|
Watch
|
Special mention
|
Substandard
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Construction & development
|
$
|
66,939
|
$
|
1,775
|
$
|
—
|
$
|
—
|
$
|
68,714
|
||||||||||
1-4 family commercial
|
29,426
|
611
|
—
|
—
|
30,037
|
|||||||||||||||
Commercial real estate – other
|
244,096
|
3,769
|
2,046
|
4,075
|
253,986
|
|||||||||||||||
Commercial & industrial
|
227,650
|
7,592
|
13,131
|
4,143
|
252,516
|
|||||||||||||||
Agricultural
|
52,841
|
95
|
2,129
|
3,518
|
58,583
|
|||||||||||||||
Consumer
|
12,194
|
—
|
—
|
—
|
12,194
|
|||||||||||||||
Total
|
$
|
633,146
|
$
|
13,842
|
$
|
17,306
|
$
|
11,736
|
$
|
676,030
|
As of December 31, 2018
|
||||||||||||||||||||
Pass
|
Watch
|
Special mention
|
Substandard
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Construction & development
|
$
|
84,485
|
$
|
2,782
|
$
|
—
|
$
|
—
|
$
|
87,267
|
||||||||||
1-4 family commercial
|
29,942
|
3,221
|
—
|
115
|
33,278
|
|||||||||||||||
Commercial real estate – other
|
154,353
|
1,559
|
—
|
484
|
156,396
|
|||||||||||||||
Commercial & industrial
|
204,671
|
36,342
|
—
|
7,381
|
248,394
|
|||||||||||||||
Agricultural
|
57,782
|
758
|
3,207
|
1,097
|
62,844
|
|||||||||||||||
Consumer
|
13,723
|
—
|
—
|
—
|
13,723
|
|||||||||||||||
Total
|
$
|
544,956
|
$
|
44,662
|
$
|
3,207
|
$
|
9,077
|
$
|
601,902
|
As of September 30, 2019
|
||||||||||||||||
Number of
Contracts
|
Pre-Modification
Outstanding
Recorded Investment
|
Post-Modification
Outstanding
Recorded Investment
|
Specific Reserves
Allocated
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Commercial real estate – other
|
1
|
$
|
1,860
|
$
|
1,860
|
$
|
32
|
|||||||||
Agricultural
|
2
|
749
|
749
|
—
|
||||||||||||
Total
|
3
|
$
|
2,609
|
$
|
2,609
|
$
|
32
|
As of December 31, 2018
|
||||||||||||||||
Number of
Contracts
|
Pre-Modification
Outstanding
Recorded Investment
|
Post-Modification
Outstanding
Recorded Investment
|
Specific Reserves
Allocated
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Commercial & industrial
|
1
|
$
|
501
|
$
|
501
|
$
|
—
|
|||||||||
Total
|
1
|
$
|
501
|
$
|
501
|
$
|
—
|
As of September 30, 2019
|
As of December 31, 2018
|
|||||||||||||||
Number of
Contracts
|
Amount
|
Number of
Contracts
|
Amount
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Accrual
|
2
|
$
|
749
|
—
|
$
|
—
|
||||||||||
Nonaccrual
|
1
|
1,860
|
1
|
501
|
||||||||||||
Total
|
3
|
$
|
2,609
|
1
|
$
|
501
|
As of September 30,
|
As of December 31,
|
|||||||||||||||
2019
|
2018
|
|||||||||||||||
Amount
|
Percentage
of
Total
|
Amount
|
Percentage
of
Total
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Noninterest-bearing demand
|
$
|
200,814
|
27.8
|
%
|
$
|
201,159
|
29.8
|
%
|
||||||||
Interest-bearing:
|
||||||||||||||||
NOW deposits
|
99,714
|
13.8
|
91,896
|
13.6
|
||||||||||||
Money market
|
134,383
|
18.6
|
118,150
|
17.5
|
||||||||||||
Savings deposits
|
65,979
|
9.1
|
69,548
|
10.3
|
||||||||||||
Time deposits (more than $100,000)
|
194,608
|
27.0
|
167,304
|
24.8
|
||||||||||||
Time deposits ($100,000 or less)
|
26,636
|
3.7
|
27,846
|
4.1
|
||||||||||||
Total interest-bearing
|
521,320
|
72.2
|
474,744
|
70.2
|
||||||||||||
Total deposits
|
$
|
722,134
|
100.0
|
%
|
$
|
675,903
|
100.0
|
%
|
For the Nine Months Ended
September 30,
|
For the Year Ended
December 31,
|
|||||||||||||||
2019
|
2018
|
|||||||||||||||
Average
Balance
|
Weighted
Average
Rate
|
Average
Balance
|
Weighted
Average
Rate
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Noninterest-bearing demand
|
$
|
186,379
|
0.00
|
%
|
$
|
183,750
|
0.00
|
%
|
||||||||
Interest-bearing:
|
||||||||||||||||
NOW
|
93,650
|
1.87
|
71,384
|
1.56
|
||||||||||||
Money market
|
127,871
|
2.00
|
90,230
|
1.65
|
||||||||||||
Savings
|
67,785
|
1.37
|
79,267
|
1.23
|
||||||||||||
Time
|
206,575
|
2.11
|
220,023
|
1.55
|
||||||||||||
Total interest-bearing
|
495,881
|
1.94
|
460,904
|
1.52
|
||||||||||||
Total deposits
|
$
|
682,260
|
1.41
|
%
|
$
|
644,654
|
1.08
|
%
|
As of September 30, 2019 Maturity Within:
|
||||||||||||||||||||
Three Months
|
Three to
Six Months
|
Six to
12 Months
|
After
12 Months
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Time deposits ($100,000 or less)
|
$
|
6,501
|
$
|
6,883
|
$
|
9,008
|
$
|
7,245
|
$
|
29,637
|
||||||||||
Time deposits (more than $100,000)
|
40,301
|
52,467
|
62,379
|
36,460
|
191,607
|
|||||||||||||||
Total time deposits
|
$
|
46,802
|
$
|
59,350
|
$
|
71,387
|
$
|
43,705
|
$
|
221,244
|
As of December 31, 2018 Maturity Within:
|
||||||||||||||||||||
Three Months
|
Three to
Six Months
|
Six to
12 Months
|
After
12 Months
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Time deposits ($100,000 or less)
|
$
|
6,229
|
$
|
4,791
|
$
|
10,342
|
$
|
6,484
|
$
|
27,846
|
||||||||||
Time deposits (more than $100,000)
|
33,308
|
41,193
|
71,827
|
20,976
|
167,304
|
|||||||||||||||
Total time deposits
|
$
|
39,537
|
$
|
45,984
|
$
|
82,169
|
$
|
27,460
|
$
|
195,150
|
Actual
|
With
Capital Conservation
Buffer
|
Minimum
To be Considered
“Well-Capitalized”
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
As of September 30, 2019:
|
||||||||||||||||||||||||
Total capital to risk-weighted assets
|
||||||||||||||||||||||||
Company
|
$
|
106,615
|
16.24
|
%
|
$
|
68,952
|
10.500
|
%
|
N/A
|
N/A
|
||||||||||||||
Bank
|
106,580
|
16.25
|
68,847
|
10.500
|
65,521
|
10.00
|
||||||||||||||||||
Tier 1 capital to risk-weighted assets
|
||||||||||||||||||||||||
Company
|
98,774
|
15.04
|
55,818
|
8.500
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
98,739
|
15.06
|
55,733
|
8.500
|
52,417
|
8.00
|
||||||||||||||||||
CET 1 capital to risk-weighted assets
|
||||||||||||||||||||||||
Company
|
98,774
|
15.04
|
45,968
|
7.000
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
98,739
|
15.06
|
45,898
|
7.000
|
42,589
|
6.50
|
||||||||||||||||||
Tier 1 leverage ratio
|
||||||||||||||||||||||||
Company
|
98,774
|
12.25
|
N/A
|
N/A
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
98,739
|
12.27
|
N/A
|
N/A
|
40,245
|
5.00
|
Actual
|
With
Capital Conservation
Buffer
|
Minimum
To be Considered
“Well-Capitalized”
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
As of December 31, 2018:
|
||||||||||||||||||||||||
Total capital to risk-weighted assets
|
||||||||||||||||||||||||
Company
|
$
|
92,693
|
15.86
|
%
|
$
|
57,709
|
9.875
|
%
|
N/A
|
N/A
|
||||||||||||||
Bank
|
93,704
|
16.03
|
57,709
|
9.875
|
58,439
|
10.00
|
||||||||||||||||||
Tier 1 capital to risk-weighted assets
|
||||||||||||||||||||||||
Company
|
85,382
|
14.61
|
46,021
|
7.875
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
86,393
|
14.78
|
46,021
|
7.875
|
46,751
|
8.00
|
||||||||||||||||||
CET 1 capital to risk-weighted assets
|
||||||||||||||||||||||||
Company
|
85,382
|
14.61
|
37,255
|
6.375
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
86,393
|
14.78
|
37,255
|
6.375
|
37,985
|
6.50
|
||||||||||||||||||
Tier 1 leverage ratio
|
||||||||||||||||||||||||
Company
|
85,382
|
11.13
|
N/A
|
N/A
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
86,393
|
11.26
|
N/A
|
N/A
|
38,355
|
5.00
|
Payments Due as of September 30, 2019
|
||||||||||||||||||||
Within
One Year
|
One to
Three Years
|
Three to
Five Years
|
After
Five Years
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Deposits without a stated maturity
|
$
|
500,890
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
500,890
|
||||||||||
Time deposits
|
177,539
|
41,565
|
2,140
|
—
|
221,244
|
|||||||||||||||
Borrowings
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Operating lease commitments
|
591
|
694
|
160
|
—
|
1,445
|
|||||||||||||||
Total contractual obligations
|
$
|
679,020
|
$
|
42,259
|
$
|
2,300
|
$
|
—
|
$
|
723,579
|
Payments Due as of December 31, 2018
|
||||||||||||||||||||
Within
One Year
|
One to
Three Years
|
Three to
Five Years
|
After
Five Years
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Deposits without a stated maturity
|
$
|
480,753
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
480,753
|
||||||||||
Time deposits
|
167,690
|
23,406
|
4,054
|
—
|
195,150
|
|||||||||||||||
Borrowings
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Operating lease commitments
|
579
|
802
|
303
|
—
|
1,684
|
|||||||||||||||
Total contractual obligations
|
$
|
649,022
|
$
|
24,208
|
$
|
4,357
|
$
|
—
|
$
|
677,587
|
As of
September 30,
2019
|
As of
December 31,
2018
|
|||||||
(Dollars in thousands)
|
||||||||
Commitments to extend credit
|
$
|
197,460
|
$
|
135,015
|
||||
Standby letters of credit
|
2,559
|
1,078
|
||||||
Total
|
$
|
200,019
|
$
|
136,093
|
Exhibit
No.
|
Description
|
10.1 |
Stock Award Agreement between the Company and Thomas L. Travis issued under the 2018 Equity Incentive Plan (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on September 5, 2019)
|
10.2 |
Stock Award Agreement between the Company and John T. Phillips issued under the 2018 Equity Incentive Plan (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed with the SEC on September 5, 2019)
|
Certification of Principal Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Certification of Principal Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
101.INS
|
XBRL Instance Document.
|
101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
BANK7 CORP.
|
|||
DATED:
|
November 14, 2019
|
By: /s/ Thomas L. Travis
|
|
Thomas L. Travis
|
|||
President and Chief Executive Officer
|
|||
DATED:
|
November 14, 2019
|
By: /s/ Kelly J. Harris
|
|
Kelly J. Harris
|
|||
Senior Vice President and Chief Financial Officer
|