(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Page | ||||||||
June 30, 2020 | December 31, 2019 | ||||||||||
(Unaudited) | (Audited) | ||||||||||
ASSETS | |||||||||||
Cash and due from banks | $ | $ | |||||||||
Interest-bearing deposits in banks | |||||||||||
Cash and cash equivalents | |||||||||||
Investment securities available for sale, at fair value | |||||||||||
Other investments, at cost | |||||||||||
Loans held for sale | |||||||||||
Loans | |||||||||||
Allowance for loan losses | ( | ( | |||||||||
Loans, net | |||||||||||
Premises and equipment | |||||||||||
Other real estate | |||||||||||
Goodwill | |||||||||||
Other intangible assets | |||||||||||
Bank-owned life insurance | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Liabilities: | |||||||||||
Deposits | |||||||||||
Noninterest-bearing | $ | $ | |||||||||
Interest-bearing | |||||||||||
Total deposits | |||||||||||
Federal Home Loan Bank advances | |||||||||||
Paycheck Protection Program Liquidity Facility | |||||||||||
Other borrowings | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Stockholders' equity: | |||||||||||
Preferred stock, | |||||||||||
Common stock, par value $ | |||||||||||
Paid in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive income, net of tax | |||||||||||
Total stockholders' equity | |||||||||||
Total liabilities and stockholders' equity | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | ||||||||||||||||||||
Interest Income | |||||||||||||||||||||||
Loans, including fees | $ | $ | $ | $ | |||||||||||||||||||
Investment securities | |||||||||||||||||||||||
Deposits with other banks and short term investments | |||||||||||||||||||||||
Total interest income | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Deposits | |||||||||||||||||||||||
Federal Home Loan Bank Advances | |||||||||||||||||||||||
Paycheck Protection Program Liquidity Facility | |||||||||||||||||||||||
Other borrowings | |||||||||||||||||||||||
Total interest expense | |||||||||||||||||||||||
Net interest income | |||||||||||||||||||||||
Provision for loan losses | |||||||||||||||||||||||
Net interest income after provision for loan losses | |||||||||||||||||||||||
Noninterest income | |||||||||||||||||||||||
Service charges on deposits | |||||||||||||||||||||||
Other service charges, commissions and fees | |||||||||||||||||||||||
Mortgage fee income | |||||||||||||||||||||||
Gain on sale of SBA loans | |||||||||||||||||||||||
Gain on sale of securities | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total noninterest income | |||||||||||||||||||||||
Noninterest Expenses | |||||||||||||||||||||||
Salaries and employee benefits | |||||||||||||||||||||||
Occupancy and equipment | |||||||||||||||||||||||
Acquisition related expenses | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total noninterest expense | |||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Income taxes | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Net income per share of common stock | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Cash dividends paid per share of common stock | $ | $ | $ | $ | |||||||||||||||||||
Weighted average basic shares outstanding | |||||||||||||||||||||||
Weighted average diluted shares outstanding |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||
Unrealized gains on securities arising during the period | |||||||||||||||||||||||
Tax effect | ( | ( | ( | ( | |||||||||||||||||||
Realized (gains) on sale of available for sale securities | ( | ( | ( | ||||||||||||||||||||
Tax effect | |||||||||||||||||||||||
Change in unrealized gains on securities available for sale, net of reclassification adjustment and tax effects | |||||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
Common Stock | |||||||||||||||||||||||||||||||||||
Three Months Ended | Shares | Amount | Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||||||||||||
Balance, March 31, 2020 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Change in net unrealized gains on securities available for sale, net of reclassification adjustment and tax effects | — | — | — | — | |||||||||||||||||||||||||||||||
Dividends on common shares ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Goodwill adjustment | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||||||||
Balance, June 30, 2020 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Balance, March 31, 2019 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Change in net unrealized gains on securities available for sale, net of reclassification adjustment and tax effects | — | — | — | — | |||||||||||||||||||||||||||||||
Dividends on common shares ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Issuance of common stock | — | — | |||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, June 30, 2019 | $ | $ | $ | $ | $ | $ |
Common Stock | |||||||||||||||||||||||||||||||||||
Six Months Ended | Shares | Amount | Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||||||||||||
Balance, December 31, 2019 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Change in net unrealized gains on securities available for sale, net of reclassification adjustment and tax effects | — | — | — | — | |||||||||||||||||||||||||||||||
Dividends on common shares ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Goodwill adjustment | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, June 30, 2020 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Balance, December 31, 2018 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Change in net unrealized gains on securities available for sale, net of reclassification adjustment and tax effect | — | — | — | — | |||||||||||||||||||||||||||||||
Dividends on common shares ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Issuance of common stock | — | — | |||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, June 30, 2019 | $ | $ | $ | $ | $ |
Six Months Ended | |||||||||||
June 30, 2020 | June 30, 2019 | ||||||||||
Operating Activities | |||||||||||
Net income | $ | $ | |||||||||
Adjustments reconciling net income to net cash provided by operating activities: | |||||||||||
Provision for loan losses | |||||||||||
Depreciation, amortization, and accretion | |||||||||||
Share-based compensation expense | |||||||||||
Gain on sale of securities | ( | ( | |||||||||
Gain on sale of SBA loans | ( | ||||||||||
Loss on sale of other real estate | ( | ( | |||||||||
Loss on sale of premises & equipment | |||||||||||
Originations of loans held for sale | ( | ( | |||||||||
Proceeds from sales of loans held for sale | |||||||||||
Change in bank-owned life insurance | ( | ||||||||||
Change in other assets | ( | ||||||||||
Change in other liabilities | |||||||||||
Net cash provided by operating activities | |||||||||||
Investing Activities | |||||||||||
Purchases of investment securities available for sale | ( | ( | |||||||||
Proceeds from maturities, calls, and paydowns of investment securities available for sale | |||||||||||
Proceeds from sale of investment securities available for sale | |||||||||||
Proceeds from sale of investment securities held to maturity | |||||||||||
Net loans | ( | ( | |||||||||
Purchase of premises and equipment | ( | ( | |||||||||
Proceeds from sale of other real estate | |||||||||||
Redemption of Federal Home Loan Bank Stock | |||||||||||
Proceeds from sale of premises and equipment | |||||||||||
Net cash and cash equivalents paid in acquisition | ( | ||||||||||
Net cash (used in) investing activities | ( | ( | |||||||||
Financing Activities | |||||||||||
Increase in noninterest-bearing customer deposits | |||||||||||
Increase in interest-bearing customer deposits | |||||||||||
Dividends paid for common stock | ( | ( | |||||||||
Issuance of Paycheck Protection Program Liquidity Fund | |||||||||||
Payments on Federal Home Loan Bank Advances | ( | ( | |||||||||
Proceeds from Federal Home Loan Bank Advances | |||||||||||
Payments on Other borrowings | ( | ( | |||||||||
Proceeds from Other borrowings | |||||||||||
Net cash provided by financing activities | |||||||||||
Net increase in cash and cash equivalents | |||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ |
Six Months Ended | |||||||||||
June 30, 2020 | June 30, 2019 | ||||||||||
Supplemental Disclosure of Cash Flow Information | |||||||||||
Cash paid during the period for interest | $ | $ | |||||||||
Cash paid during the period for income taxes | |||||||||||
Goodwill adjustment | $ | ||||||||||
Acquisition of real estate through foreclosure | |||||||||||
(dollars in thousands, except market price) | Initial Fair Value Adjustments | Subsequent Adjustments (1) | Final Balance | ||||||||||||||
Purchase price consideration: | |||||||||||||||||
Shares of CBAN common stock issued to LBC shareholders as of May 1, 2019 | |||||||||||||||||
Market price of CBAN common stock on May 1, 2019 | $ | $ | ( | $ | |||||||||||||
Estimated fair value of CBAN common stock issued | ( | ||||||||||||||||
Cash consideration paid | — | ||||||||||||||||
Total consideration | $ | $ | ( | $ | |||||||||||||
Assets acquired at fair value: | |||||||||||||||||
Cash and cash equivalents | $ | $ | — | $ | |||||||||||||
Investments securities available for sale | — | ||||||||||||||||
Investments securities held to maturity | — | ||||||||||||||||
Restricted investments | — | ||||||||||||||||
Loans | — | ||||||||||||||||
Premises and equipment | — | ||||||||||||||||
Core deposit intangible | — | ||||||||||||||||
Other real estate | — | ||||||||||||||||
Prepaid and other assets | — | ||||||||||||||||
Total fair value of assets acquired | $ | $ | — | $ | |||||||||||||
Liabilities assumed at fair value: | |||||||||||||||||
Deposits | $ | ( | $ | — | $ | ( | |||||||||||
FHLB advances | ( | — | ( | ||||||||||||||
Payables and other liabilities | ( | — | ( | ||||||||||||||
Total fair value of liabilities assumed | $ | ( | $ | — | $ | ( | |||||||||||
Net assets acquired at fair value: | $ | $ | — | $ | |||||||||||||
Amount of goodwill resulting from acquisition | $ | $ | ( | $ |
(dollars in thousands) | |||||
Contractually required principal and interest | $ | ||||
Non-accretable difference | ( | ||||
Cash Flows expected to be collected | |||||
Accretable yield | |||||
Total purchased credit-impaired loans acquired | $ |
(dollars in thousands) | Fair Value of Acquired Loans at Acquisition Date | Gross Contractual Amounts Receivable at Acquisition Date | Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected | ||||||||||||||
Acquired receivables subject to ASC 310-30 | $ | $ | $ | ||||||||||||||
Acquired receivables not subject to ASC 310-30 |
(dollars in thousands) | |||||
Purchase price consideration: | |||||
Cash consideration paid | $ | ||||
Total consideration | $ | ||||
Assets acquired at fair value: | |||||
Premises and equipment | $ | ||||
Premium on loan commitments | |||||
Other assets | |||||
Total fair value of assets acquired | $ | ||||
Liabilities assumed at fair value: | |||||
Total fair value of liabilities assumed | $ | ||||
Net assets acquired at fair value: | $ | ||||
Amount of goodwill resulting from acquisition | $ |
(dollars in thousands) | |||||||||||||||||||||||
June 30, 2020 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||
Securities Available for Sale: | |||||||||||||||||||||||
U.S. treasury securities | $ | $ | $ | $ | |||||||||||||||||||
State, county & municipal securities | ( | ||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
Mortgage-backed securities | ( | ||||||||||||||||||||||
$ | $ | $ | ( | $ | |||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||
Securities Available for Sale: | |||||||||||||||||||||||
State, county & municipal securities | $ | $ | $ | ( | $ | ||||||||||||||||||
Corporate debt securities | ( | ||||||||||||||||||||||
Mortgage-backed securities | ( | ||||||||||||||||||||||
$ | $ | $ | ( | $ |
Securities Available for Sale | |||||||||||
(dollars in thousands) | Amortized Cost | Fair Value | |||||||||
Due in one year or less | $ | $ | |||||||||
Due after one year through five years | |||||||||||
Due after five years through ten years | |||||||||||
Due after ten years | |||||||||||
$ | $ | ||||||||||
Mortgage-backed securities | |||||||||||
$ | $ |
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||||||||||||||
June 30, 2020 | |||||||||||||||||||||||||||||||||||
State, county & municipal securities | $ | $ | ( | $ | $ | $ | $ | ( | |||||||||||||||||||||||||||
Mortgage-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
$ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||
State, county & municipal securities | $ | $ | ( | $ | $ | $ | $ | ( | |||||||||||||||||||||||||||
Corporate debt securities | ( | ( | |||||||||||||||||||||||||||||||||
Mortgage-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
$ | $ | ( | $ | $ | ( | $ | $ | ( |
June 30, 2020 | |||||||||||||||||
(dollars in thousands) | Legacy Loans | Purchased Loans | Total | ||||||||||||||
Construction, land and land development | $ | $ | $ | ||||||||||||||
Other commercial real estate | |||||||||||||||||
Total commercial real estate | |||||||||||||||||
Residential real estate | |||||||||||||||||
Commercial, financial, & agricultural | |||||||||||||||||
Consumer and other | |||||||||||||||||
Total Loans | $ | $ | $ |
December 31, 2019 | |||||||||||||||||
(dollars in thousands) | Legacy Loans | Purchased Loans | Total | ||||||||||||||
Construction, land and land development | $ | $ | $ | ||||||||||||||
Other commercial real estate | |||||||||||||||||
Total commercial real estate | |||||||||||||||||
Residential real estate | |||||||||||||||||
Commercial, financial, & agricultural | |||||||||||||||||
Consumer and other | |||||||||||||||||
Total Loans | $ | $ | $ |
(dollars in thousands) | Pass | Special Mention | Substandard | Total Loans | |||||||||||||||||||
June 30, 2020 | |||||||||||||||||||||||
Construction, land and land development | $ | $ | $ | $ | |||||||||||||||||||
Other commercial real estate | |||||||||||||||||||||||
Total commercial real estate | |||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||
Commercial, financial, & agricultural | |||||||||||||||||||||||
Consumer and other | |||||||||||||||||||||||
Total Loans | $ | $ | $ | $ | |||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||
Construction, land and land development | $ | $ | $ | $ | |||||||||||||||||||
Other commercial real estate | |||||||||||||||||||||||
Total commercial real estate | |||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||
Commercial, financial, & agricultural | |||||||||||||||||||||||
Consumer and other | |||||||||||||||||||||||
Total Loans | $ | $ | $ | $ |
(dollars in thousands) | Pass | Special Mention | Substandard | Total Loans | |||||||||||||||||||
June 30, 2020 | |||||||||||||||||||||||
Construction, land and land development | $ | $ | $ | $ | |||||||||||||||||||
Other commercial real estate | |||||||||||||||||||||||
Total commercial real estate | |||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||
Commercial, financial, & agricultural | |||||||||||||||||||||||
Consumer and other | |||||||||||||||||||||||
Total Loans | $ | $ | $ | $ | |||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||
Construction, land and land development | $ | $ | $ | $ | |||||||||||||||||||
Other commercial real estate | |||||||||||||||||||||||
Total commercial real estate | |||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||
Commercial, financial, & agricultural | |||||||||||||||||||||||
Consumer and other | |||||||||||||||||||||||
Total Loans | $ | $ | $ | $ |
(dollars in thousands) | 30-89 Days Past Due | 90 Days or More Past Due | Total Accruing Loans Past Due | Nonaccrual Loans | Current Loans | Total Loans | |||||||||||||||||||||||||||||
June 30, 2020 | |||||||||||||||||||||||||||||||||||
Construction, land and land development | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Other commercial real estate | |||||||||||||||||||||||||||||||||||
Total commercial real estate | |||||||||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||||
Commercial, financial, & agricultural | |||||||||||||||||||||||||||||||||||
Consumer and other | |||||||||||||||||||||||||||||||||||
Total Loans | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||
Construction, land and land development | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Other commercial real estate | |||||||||||||||||||||||||||||||||||
Total commercial real estate | |||||||||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||||
Commercial, financial, & agricultural | |||||||||||||||||||||||||||||||||||
Consumer and other | |||||||||||||||||||||||||||||||||||
Total Loans | $ | $ | $ | $ | $ | $ |
(dollars in thousands) | 30-89 Days Past Due | 90 Days or More Past Due | Total Accruing Loans Past Due | Nonaccrual Loans | Current Loans | Total Loans | |||||||||||||||||||||||||||||
June 30, 2020 | |||||||||||||||||||||||||||||||||||
Construction, land and land development | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Other commercial real estate | |||||||||||||||||||||||||||||||||||
Total commercial real estate | |||||||||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||||
Commercial, financial, & agricultural | |||||||||||||||||||||||||||||||||||
Consumer and other | |||||||||||||||||||||||||||||||||||
Total Loans | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||
Construction, land and land development | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Other commercial real estate | |||||||||||||||||||||||||||||||||||
Total commercial real estate | |||||||||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||||
Commercial, financial, & agricultural | |||||||||||||||||||||||||||||||||||
Consumer and other | |||||||||||||||||||||||||||||||||||
Total Loans | $ | $ | $ | $ | $ | $ |
June 30, 2020 | |||||||||||||||||||||||
(dollars in thousands) | Unpaid Contractual Principal Balance | Impaired Balance | Related Allowance | Average Recorded Investment | |||||||||||||||||||
With No Related Allowance Recorded | |||||||||||||||||||||||
Construction, land and land development | $ | $ | $ | — | $ | ||||||||||||||||||
Commercial real estate | — | ||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||
Commercial, financial & agriculture | — | ||||||||||||||||||||||
Consumer & other | — | ||||||||||||||||||||||
— | |||||||||||||||||||||||
With An Allowance Recorded | |||||||||||||||||||||||
Construction, land and land development | |||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||
Commercial, financial & agriculture | |||||||||||||||||||||||
Consumer & other | |||||||||||||||||||||||
Purchased Credit Impaired Loans | |||||||||||||||||||||||
Construction, land and land development | |||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||
Commercial, financial & agriculture | |||||||||||||||||||||||
Consumer & other | |||||||||||||||||||||||
Total | |||||||||||||||||||||||
Construction, land and land development | |||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||
Commercial, financial & agriculture | |||||||||||||||||||||||
Consumer & other | |||||||||||||||||||||||
$ | $ | $ | $ |
December 31, 2019 | |||||||||||||||||||||||
(dollars in thousands) | Unpaid Contractual Principal Balance | Impaired Balance | Related Allowance | Average Recorded Investment | |||||||||||||||||||
With No Related Allowance Recorded | |||||||||||||||||||||||
Construction, land and land development | $ | $ | $ | — | $ | ||||||||||||||||||
Commercial real estate | — | ||||||||||||||||||||||
Residential real estate | — | ||||||||||||||||||||||
Commercial, financial & agriculture | |||||||||||||||||||||||
Consumer & other | — | ||||||||||||||||||||||
— | |||||||||||||||||||||||
With An Allowance Recorded | |||||||||||||||||||||||
Construction, land and land development | |||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||
Commercial, financial & agriculture | |||||||||||||||||||||||
Consumer & other | |||||||||||||||||||||||
Purchased Credit Impaired Loans | |||||||||||||||||||||||
Construction, land and land development | |||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||
Commercial, financial & agriculture | |||||||||||||||||||||||
Consumer & other | |||||||||||||||||||||||
Total | |||||||||||||||||||||||
Construction, land and land development | |||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||
Commercial, financial & agriculture | |||||||||||||||||||||||
Consumer & other | |||||||||||||||||||||||
$ | $ | $ | $ |
(dollars in thousands) | Construction, land and land development | Other commercial real estate | Residential real estate | Commercial, financial & agricultural | Consumer and other | Total | |||||||||||||||||||||||||||||
Three months ended June 30, 2020 | |||||||||||||||||||||||||||||||||||
Beginning Balance | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Charge-offs | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||
Provision | |||||||||||||||||||||||||||||||||||
Ending balance | |||||||||||||||||||||||||||||||||||
Six months ended June 30, 2020 | |||||||||||||||||||||||||||||||||||
Beginning Balance | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Charge-offs | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||
Provision | |||||||||||||||||||||||||||||||||||
Ending balance | |||||||||||||||||||||||||||||||||||
Period end amount allocated to | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | |||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | |||||||||||||||||||||||||||||||||||
Purchase credit impaired | |||||||||||||||||||||||||||||||||||
Ending Balance | |||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | |||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | |||||||||||||||||||||||||||||||||||
Purchase credit impaired | |||||||||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ |
(dollars in thousands) | Construction, land and land development | Other commercial real estate | Residential real estate | Commercial, financial & agricultural | Consumer and other | Total | |||||||||||||||||||||||||||||
Three months ended June 30, 2019 | |||||||||||||||||||||||||||||||||||
Beginning Balance | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Charge-offs | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||
Provision | ( | ( | ( | ||||||||||||||||||||||||||||||||
Ending balance | |||||||||||||||||||||||||||||||||||
Six months ended June 30, 2019 | |||||||||||||||||||||||||||||||||||
Beginning Balance | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Charge-offs | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||
Provision | ( | ( | |||||||||||||||||||||||||||||||||
Ending balance | |||||||||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||
Period end amount allocated to | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | |||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | |||||||||||||||||||||||||||||||||||
Purchase credit impaired | |||||||||||||||||||||||||||||||||||
Ending Balance | |||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | |||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | |||||||||||||||||||||||||||||||||||
Purchase credit impaired | |||||||||||||||||||||||||||||||||||
Ending Balance | $ | $ | $ | $ | $ | $ |
(dollars in thousands) | Classification | June 30, 2020 | December 31, 2019 | ||||||||||||||
Assets | |||||||||||||||||
Operating lease right-of-use assets | Other assets | $ | $ | ||||||||||||||
Liabilities | |||||||||||||||||
Operating lease liabilities | Other liabilities |
(dollars in thousands) | Lease Liability | |||||||
2021 | $ | |||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
After June 30, 2025 | ||||||||
Total lease payments | $ | |||||||
Less: interest | ( | |||||||
Present value of lease liabilities | $ | |||||||
Supplemental lease information: | ||||||||
Cash paid for amounts included in the measurement of lease liabilities: | June 30, 2020 | |||||||
Operating cash flows from operating leases (cash payments) | $ | |||||||
Operating cash flows from operating leases (lease liability reduction) | ||||||||
Operating lease right-of-use assets obtained in exchange for leases entered into during the period |
(dollars in thousands) | June 30, 2020 | December 31, 2019 | |||||||||
Federal Home Loan Bank advances | $ | $ | |||||||||
Paycheck Protection Program (PPP) Liquidity Facility | |||||||||||
Other borrowings | |||||||||||
$ | $ |
(dollars in thousands) | ||||||||
Year | Amount | |||||||
2021 | $ | |||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
2025 and After | ||||||||
PPPLF | ||||||||
$ |
(dollars in thousands, except per share data) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Numerator | |||||||||||||||||||||||
Net income available to common stockholders | $ | $ | $ | $ | |||||||||||||||||||
Denominator | |||||||||||||||||||||||
Weighted average number of common shares | |||||||||||||||||||||||
Outstanding for basic earnings per common share | |||||||||||||||||||||||
Weighted-average number of shares outstanding for diluted earnings per common share | |||||||||||||||||||||||
Earnings per share - basic | $ | $ | $ | $ | |||||||||||||||||||
Earnings per share - diluted | $ | $ | $ | $ |
Contract Amount | |||||||||||
(dollars in thousands) | June 30, 2020 | December 31, 2019 | |||||||||
Loan commitments | $ | $ | |||||||||
Letters of credit |
Fair Value Measurements | |||||||||||||||||||||||||||||
(dollars in thousands) | Carrying Value | Estimated Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
June 30, 2020 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and short-term investments | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Investment securities available for sale | |||||||||||||||||||||||||||||
Other investments, at cost | |||||||||||||||||||||||||||||
Loans held for sale | |||||||||||||||||||||||||||||
Loans, net | |||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Deposits | |||||||||||||||||||||||||||||
Paycheck Protection Program Liquidity Facility | |||||||||||||||||||||||||||||
Federal Home Loan Bank advances | |||||||||||||||||||||||||||||
Other borrowings |
Fair Value Measurements | |||||||||||||||||||||||||||||
(dollars in thousands) | Carrying Value | Estimated Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and short-term investments | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Investment securities available for sale | |||||||||||||||||||||||||||||
Other investments, at cost | |||||||||||||||||||||||||||||
Loans held for sale | |||||||||||||||||||||||||||||
Loans, net | |||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Deposits | |||||||||||||||||||||||||||||
Federal Home Loan Bank advances | |||||||||||||||||||||||||||||
Other borrowings |
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||
(dollars in thousands) | Total Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||
June 30, 2020 | |||||||||||||||||||||||
Recurring Securities Available for Sale | |||||||||||||||||||||||
U.S. treasury securities | $ | $ | $ | $ | |||||||||||||||||||
State, county & municipal securities | |||||||||||||||||||||||
Corporate Debt securities | |||||||||||||||||||||||
Mortgage-backed securities | |||||||||||||||||||||||
Total available for sale securities | $ | $ | $ | $ | |||||||||||||||||||
Nonrecurring | |||||||||||||||||||||||
Collateral Dependent Impaired Loans | $ | $ | $ | $ | |||||||||||||||||||
Other Real Estate | |||||||||||||||||||||||
Total nonrecurring assets | $ | $ | $ | $ |
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||
(dollars in thousands) | Total Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||
Recurring Securities Available for Sale | |||||||||||||||||||||||
State, county & municipal securities | $ | $ | $ | $ | |||||||||||||||||||
Corporate Debt securities | |||||||||||||||||||||||
Mortgage-backed securities | |||||||||||||||||||||||
Total available for sale securities | $ | $ | $ | $ | |||||||||||||||||||
Nonrecurring | |||||||||||||||||||||||
Collateral Dependent Impaired Loans | $ | $ | $ | ||||||||||||||||||||
Other Real Estate | |||||||||||||||||||||||
Total nonrecurring assets | $ | $ | $ | $ |
(dollars in thousands) | June 30, 2020 | Valuation Techniques | Unobservable Inputs | Range Weighted Avg | |||||||||||||||||||||||||
Collateral Dependent Impaired Loans | $ | Appraised Value | Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell | % | % | ||||||||||||||||||||||||
Other Real Estate | Appraised Value/Comparable Sales | Discounts to reflect current market conditions and estimated costs to sell | % | % |
(dollars in thousands) | December 31, 2019 | Valuation Techniques | Unobservable Inputs | Range Weighted Avg | |||||||||||||||||||||||||
Collateral Dependent Impaired Loans | $ | Appraised Value | Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell | % | % | ||||||||||||||||||||||||
Other Real Estate | Appraised Value/Comparable Sales | Discounts to reflect current market conditions and estimated costs to sell | % | % |
Available for Sale Securities | |||||||||||
(dollars in thousands) | June 30, 2020 | June 30, 2019 | |||||||||
Balance, Beginning | $ | $ | |||||||||
Transfers out of Level 3 | |||||||||||
Sales | |||||||||||
Paydowns | ( | ( | |||||||||
Realized Loss on Sale of Security | |||||||||||
Unrealized gains included in Other Comprehensive Income | |||||||||||
Balance, Ending | $ | $ |
(dollars in thousands) | |||||||||||||||||||||||
June 30, 2020 | Fair Value | Valuation Techniques | Unobservable Inputs | Range (Weighted Avg) | |||||||||||||||||||
Corporate debt securities | $ | Discounted Cash Flow | Discount Rate or Yield | N/A* | |||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||
Corporate debt securities | $ | Discounted Cash Flow | Discount Rate or Yield | N/A* |
(dollars in thousands) | Bank | Mortgage Banking | Small Business Specialty Lending Division | Totals | ||||||||||||||||||||||
Three months ended June 30, 2020 | ||||||||||||||||||||||||||
Net Interest Income | $ | $ | $ | $ | ||||||||||||||||||||||
Provision for Loan Losses | ||||||||||||||||||||||||||
Noninterest Income | ||||||||||||||||||||||||||
Noninterest Expenses | ||||||||||||||||||||||||||
Income Taxes | ||||||||||||||||||||||||||
Segment Profit (Loss) | $ | $ | $ | ( | $ | |||||||||||||||||||||
Segments Assets at June 30, 2020 | $ | $ | $ | $ |
(dollars in thousands) | Bank | Mortgage Banking | Small Business Specialty Lending Division | Totals | ||||||||||||||||||||||
Three months ended June 30, 2019 | ||||||||||||||||||||||||||
Net Interest Income | $ | $ | $ | $ | ||||||||||||||||||||||
Provision for Loan Losses | ||||||||||||||||||||||||||
Noninterest Income | ||||||||||||||||||||||||||
Noninterest Expenses | ||||||||||||||||||||||||||
Income Taxes | ||||||||||||||||||||||||||
Segment Profit | $ | $ | $ | $ | ||||||||||||||||||||||
Segments Assets at June 30, 2019 | $ | $ | $ | $ |
(dollars in thousands) | Bank | Mortgage Banking | Small Business Specialty Lending Division | Totals | ||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||
Net Interest Income | $ | $ | $ | $ | ||||||||||||||||||||||
Provision for Loan Losses | ||||||||||||||||||||||||||
Noninterest Income | ||||||||||||||||||||||||||
Noninterest Expenses | ||||||||||||||||||||||||||
Income Taxes | ||||||||||||||||||||||||||
Segment Profit (Loss) | $ | $ | $ | ( | $ |
(dollars in thousands) | Bank | Mortgage Banking | Small Business Specialty Lending Division | Totals | ||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||
Net Interest Income | $ | $ | $ | $ | ||||||||||||||||||||||
Provision for Loan Losses | ||||||||||||||||||||||||||
Noninterest Income | ||||||||||||||||||||||||||
Noninterest Expenses | ||||||||||||||||||||||||||
Income Taxes | ||||||||||||||||||||||||||
Segment Profit | $ | $ | $ | $ |
(dollars in thousands) | Actual | For Capital Adequacy Purposes | To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||
As of June 30, 2020 | |||||||||||||||||||||||||||||||||||
Total Capital to Risk-Weighted Assets | |||||||||||||||||||||||||||||||||||
Consolidated | $ | % | $ | % | N/A | N/A | |||||||||||||||||||||||||||||
Colony Bank | $ | % | |||||||||||||||||||||||||||||||||
Tier I Capital to Risk-Weighted Assets | |||||||||||||||||||||||||||||||||||
Consolidated | N/A | N/A | |||||||||||||||||||||||||||||||||
Colony Bank | |||||||||||||||||||||||||||||||||||
Common Equity Tier I Capital to Risk-Weighted Assets | |||||||||||||||||||||||||||||||||||
Consolidated | N/A | N/A | |||||||||||||||||||||||||||||||||
Colony Bank | |||||||||||||||||||||||||||||||||||
Tier I Capital to Average Assets | |||||||||||||||||||||||||||||||||||
Consolidated | N/A | N/A | |||||||||||||||||||||||||||||||||
Colony Bank |
(dollars in thousands) | Actual | For Capital Adequacy Purposes | To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||
As of December 31, 2019 | |||||||||||||||||||||||||||||||||||
Total Capital to Risk-Weighted Assets | |||||||||||||||||||||||||||||||||||
Consolidated | $ | % | $ | % | N/A | N/A | |||||||||||||||||||||||||||||
Colony Bank | $ | % | |||||||||||||||||||||||||||||||||
Tier I Capital to Risk-Weighted Assets | |||||||||||||||||||||||||||||||||||
Consolidated | N/A | N/A | |||||||||||||||||||||||||||||||||
Colony Bank | |||||||||||||||||||||||||||||||||||
Common Equity Tier I Capital to Risk-Weighted Assets | |||||||||||||||||||||||||||||||||||
Consolidated | N/A | N/A | |||||||||||||||||||||||||||||||||
Colony Bank | |||||||||||||||||||||||||||||||||||
Tier I Capital to Average Assets | |||||||||||||||||||||||||||||||||||
Consolidated | N/A | N/A | |||||||||||||||||||||||||||||||||
Colony Bank |
Table 1 - Non-GAAP Performance Measures Reconciliation | |||||||||||||||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | |||||||||||||||||||||||||
Non-GAAP Measures | |||||||||||||||||||||||||||||
Operating net income reconciliation | |||||||||||||||||||||||||||||
Net income (GAAP) | $2,214 | $1,603 | $2,756 | $2,518 | $2,101 | ||||||||||||||||||||||||
Acquisition-related expenses | 220 | 287 | 335 | 861 | 1,928 | ||||||||||||||||||||||||
Income tax benefit of acquisition-related expenses | (46) | (60) | (70) | (181) | (404) | ||||||||||||||||||||||||
Operating net income | $2,388 | $1,830 | $3,021 | $3,198 | $3,625 | ||||||||||||||||||||||||
Weighted average diluted shares | 9,498,783 | 9,498,783 | 9,494,859 | 9,494,771 | 9,089,461 | ||||||||||||||||||||||||
Adjusted earnings per diluted share | $0.25 | $0.19 | $0.32 | $0.34 | $0.40 | ||||||||||||||||||||||||
Tangible common book value per share reconciliation | |||||||||||||||||||||||||||||
Common book value per share (GAAP) | $14.59 | $14.35 | $13.74 | $13.65 | $13.32 | ||||||||||||||||||||||||
Effect of goodwill and other intangibles | (1.96) | (2.06) | (2.06) | (2.04) | (2.07) | ||||||||||||||||||||||||
Tangible common book value per share | 12.63 | 12.29 | 11.68 | 11.61 | 11.25 | ||||||||||||||||||||||||
Table 2 - Selected Financial Information | |||||||||||||||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | |||||||||||||||||||||||||
EARNINGS SUMMARY | |||||||||||||||||||||||||||||
Net interest income | $13,541 | $12,704 | $12,992 | $12,648 | $11,825 | ||||||||||||||||||||||||
Provision for loan losses | 2,200 | 1,956 | 581 | 214 | 179 | ||||||||||||||||||||||||
Non-interest income | 4,843 | 4,434 | 4,412 | 4,039 | 4,000 | ||||||||||||||||||||||||
Non-interest expense | 13,375 | 13,251 | 13,496 | 13,358 | 13,014 | ||||||||||||||||||||||||
Income taxes | 595 | 328 | 571 | 597 | 531 | ||||||||||||||||||||||||
Net income | $2,214 | $1,603 | $2,756 | $2,518 | $2,101 | ||||||||||||||||||||||||
PERFORMANCE MEASURES | |||||||||||||||||||||||||||||
Per common share: | |||||||||||||||||||||||||||||
Common shares outstanding | 9,498,783 | 9,498,783 | 9,498,783 | 9,498,783 | 9,498,937 | ||||||||||||||||||||||||
Weighted average basic shares | 9,498,783 | 9,498,783 | 9,494,859 | 9,494,771 | 9,089,461 | ||||||||||||||||||||||||
Weighted average diluted shares | 9,498,783 | 9,498,783 | 9,494,859 | 9,494,771 | 9,089,461 | ||||||||||||||||||||||||
Earnings per basic share | $0.23 | $0.17 | $0.29 | $0.27 | $0.23 | ||||||||||||||||||||||||
Earnings per diluted share | 0.23 | 0.17 | 0.29 | 0.27 | 0.23 | ||||||||||||||||||||||||
Adjusted earnings per diluted share(b) | 0.25 | 0.19 | 0.32 | 0.34 | 0.40 | ||||||||||||||||||||||||
Cash dividends declared per share | 0.10 | 0.10 | 0.08 | 0.08 | 0.08 | ||||||||||||||||||||||||
Book value per common share | 14.59 | 14.35 | 13.74 | 13.65 | 13.32 | ||||||||||||||||||||||||
Tangible book value per common share (b) | 12.63 | 12.29 | 11.68 | 11.61 | 11.25 | ||||||||||||||||||||||||
Performance ratios: | |||||||||||||||||||||||||||||
Net interest margin (a) | 3.41% | 3.63% | 3.72% | 3.64% | 3.61% | ||||||||||||||||||||||||
Return on average assets | 0.52 | 0.42 | 0.73 | 0.67 | 0.60 | ||||||||||||||||||||||||
Return on average total equity | 6.47 | 4.79 | 8.47 | 7.86 | 7.43 | ||||||||||||||||||||||||
Average total equity to average assets | 8.06 | 8.86 | 8.66 | 8.59 | 8.03 | ||||||||||||||||||||||||
ASSET QUALITY | |||||||||||||||||||||||||||||
Nonperforming loans (NPLs) | $11,459 | $10,130 | $9,179 | $9,572 | $10,383 | ||||||||||||||||||||||||
Other real estate | 1,769 | 847 | 1,320 | 775 | 987 | ||||||||||||||||||||||||
Repossessions | 17 | 19 | 13 | 8 | 58 | ||||||||||||||||||||||||
Total nonperforming assets (NPAs) | 13,245 | 10,996 | 10,512 | 10,355 | 11,428 | ||||||||||||||||||||||||
Classified loans | 20,619 | 23,093 | 21,084 | 20,103 | 23,656 | ||||||||||||||||||||||||
Criticized loans | 52,200 | 46,600 | 51,182 | 42,765 | 42,336 | ||||||||||||||||||||||||
Net loan charge-offs | 295 | 435 | 317 | 403 | (21) | ||||||||||||||||||||||||
Allowance for loan losses to total loans | 0.92% | 0.85% | 0.71% | 0.69% | 0.73% |
Allowance for loan losses to total NPLs | 89.79 | 64.81 | 74.77 | 68.95 | 65.38 | ||||||||||||||||||||||||
Allowance for loan losses to total NPAs | 77.68 | 60.83 | 65.29 | 63.73 | 59.41 | ||||||||||||||||||||||||
Net charge-offs to average loans (annualized) | 0.12 | 0.18 | 0.13 | 0.17 | (0.01) | ||||||||||||||||||||||||
NPLs to total loans | 1.03 | 1.13 | 0.95 | 1.00 | 1.11 | ||||||||||||||||||||||||
NPAs to total assets | 0.75 | 0.91 | 0.69 | 0.70 | 0.76 | ||||||||||||||||||||||||
NPAs to total loans and other real estate | 1.19 | 1.39 | 1.08 | 1.08 | 1.18 | ||||||||||||||||||||||||
AVERAGE BALANCES | |||||||||||||||||||||||||||||
Total assets | $1,702,902 | $1,516,191 | $1,503,521 | $1,492,852 | $1,409,265 | ||||||||||||||||||||||||
Loans, net | 1,094,299 | 974,614 | 961,756 | 942,356 | 866,841 | ||||||||||||||||||||||||
Deposits | 1,384,739 | 1,293,784 | 1,278,987 | 1,272,561 | 1,219,274 | ||||||||||||||||||||||||
Total stockholders’ equity | 137,213 | 134,304 | 130,217 | 128,172 | 113,161 | ||||||||||||||||||||||||
(a) Computed using fully taxable-equivalent net income. | |||||||||||||||||||||||||||||
(b) Non-GAAP measure - see “Non-GAAP Reconciliation and Explanation” for more information and reconciliation to GAAP |
Table 3 - Average Balance Sheet and Net Interest Analysis | ||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Average Balances | Income/ Expense | Yields/ Rates | Average Balances | Income/ Expense | Yields/ Rates | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||
Loans, net of unearned income(1) | $ | 1,094,299 | $ | 13,699 | 5.02 | % | $ | 866,841 | $ | 12,313 | 5.70 | % | ||||||||||||||||||||||||||
Investment securities, taxable | 331,378 | 1,757 | 2.13 | 385,374 | 2,399 | 2.50 | ||||||||||||||||||||||||||||||||
Investment securities, tax-exempt(2) | 8,959 | 37 | 1.66 | 2,228 | 17 | 3.06 | ||||||||||||||||||||||||||||||||
Deposits in banks and short term investments | 159,902 | 48 | 0.12 | 59,894 | 369 | 2.47 | ||||||||||||||||||||||||||||||||
Total interest-earning assets | 1,594,538 | 15,541 | 3.91 | 1,314,337 | 15,098 | 4.61 | ||||||||||||||||||||||||||||||||
Noninterest-earning assets | $ | 108,364 | 94,928 | |||||||||||||||||||||||||||||||||||
Total assets | $ | 1,702,902 | $ | 1,409,265 | ||||||||||||||||||||||||||||||||||
Liabilities and stockholders' equity | ||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
Interest-earning demand and savings | $ | 766,692 | $ | 407 | 0.21 | % | $ | 624,196 | $ | 1,136 | 0.73 | % | ||||||||||||||||||||||||||
Other time | 311,334 | 996 | 1.28 | 368,116 | 1,496 | 1.63 | ||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 1,078,026 | 1,403 | 0.52 | 992,312 | 2,632 | 1.06 | ||||||||||||||||||||||||||||||||
Federal Home Loan Bank advances | 36,500 | 211 | 2.32 | 49,070 | 374 | 3.06 | ||||||||||||||||||||||||||||||||
Paycheck Protection Program Liquidity Facility | 99,124 | 87 | 0.35 | — | — | — | ||||||||||||||||||||||||||||||||
Other borrowings | 38,694 | 299 | 3.10 | 24,229 | 267 | 4.42 | ||||||||||||||||||||||||||||||||
Total other interest-bearing liabilities | 174,318 | 597 | 1.37 | 73,299 | 641 | 3.51 | ||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 1,252,344 | 2,000 | 0.64 | 1,065,611 | 3,273 | 1.23 | ||||||||||||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
Demand deposits | $ | 306,713 | $ | 226,862 | ||||||||||||||||||||||||||||||||||
Other liabilities | 6,632 | 3,631 | ||||||||||||||||||||||||||||||||||||
Stockholders' equity | 137,213 | 113,161 | ||||||||||||||||||||||||||||||||||||
Total noninterest-bearing liabilities and stockholders' equity | $ | 450,558 | $ | 343,654 | ||||||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 1,702,902 | $ | 1,409,265 | ||||||||||||||||||||||||||||||||||
Interest rate spread | 3.27 | % | 3.38 | % | ||||||||||||||||||||||||||||||||||
Net interest income | $ | 13,541 | $ | 11,825 | ||||||||||||||||||||||||||||||||||
Net interest margin | 3.41 | % | 3.61 | % |
Table 3 - Average Balance Sheet and Net Interest Analysis | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | Average Balances | Income/ Expense | Yields/ Rates | Average Balances | Income/ Expense | Yields/ Rates | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||
Loans, net of unearned income (1) | $ | 1,037,242 | $ | 26,989 | 5.22 | % | $ | 828,234 | $ | 22,783 | 5.52 | % | |||||||||||||||||||||||
Investment securities, taxable | 335,836 | 3,746 | 2.24 | 376,161 | 4,596 | 2.45 | |||||||||||||||||||||||||||||
Investment securities, tax-exempt(2) | 4,941 | 42 | 1.70 | 2,103 | 28 | 2.67 | |||||||||||||||||||||||||||||
Deposits in banks and short term investments | 122,885 | 332 | 0.54 | 61,429 | 704 | 2.30 | |||||||||||||||||||||||||||||
Total interest-earning assets | 1,500,904 | 31,109 | 4.16 | 1,267,927 | 28,111 | 4.45 | |||||||||||||||||||||||||||||
Noninterest-earning assets | $ | 106,932 | 66,888 | ||||||||||||||||||||||||||||||||
Total assets | $ | 1,607,836 | $ | 1,334,815 | |||||||||||||||||||||||||||||||
Liabilities and stockholders' equity | |||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Interest-earning demand and savings | $ | 747,273 | $ | 1,342 | 0.36 | % | $ | 596,212 | $ | 1,974 | 0.66 | % | |||||||||||||||||||||||
Other time | 323,073 | 2,279 | 1.41 | 355,731 | 2,780 | 1.57 | |||||||||||||||||||||||||||||
Total interest-bearing deposits | 1,070,346 | 3,621 | 0.68 | 951,943 | 4,754 | 1.00 | |||||||||||||||||||||||||||||
Federal Home Loan Bank advances | 41,038 | 468 | 2.29 | 46,218 | 506 | 2.20 | |||||||||||||||||||||||||||||
Paycheck Protection Program Liquidity Facility | 49,561 | 87 | 0.35 | — | — | — | |||||||||||||||||||||||||||||
Other borrowings | 38,745 | 688 | 3.56 | 24,229 | 669 | 5.54 | |||||||||||||||||||||||||||||
Total other interest-bearing liabilities | 129,344 | 1,243 | 1.93 | 70,447 | 1,175 | 3.35 | |||||||||||||||||||||||||||||
Total interest-bearing liabilities | 1,199,690 | 4,864 | 0.81 | 1,022,390 | 5,929 | 1.16 | |||||||||||||||||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Demand deposits | 266,163 | 204,012 | |||||||||||||||||||||||||||||||||
Other liabilities | 6,223 | 3,571 | |||||||||||||||||||||||||||||||||
Stockholders' equity | 135,760 | 104,842 | |||||||||||||||||||||||||||||||||
Total noninterest-bearing liabilities and stockholders' equity | $ | 408,146 | $ | 312,425 | |||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 1,607,836 | $ | 1,334,815 | |||||||||||||||||||||||||||||||
Interest rate spread | 3.34 | % | 3.28 | % | |||||||||||||||||||||||||||||||
Net interest income | $ | 26,245 | $ | 22,182 | |||||||||||||||||||||||||||||||
Net interest margin | 3.51 | % | 3.51 | % |
Table 4 - Change in Interest Revenue and Expense on a Taxable Equivalent Basis | |||||||||||||||||
Six Months Ended June 30, 2020 | |||||||||||||||||
Compared to Six Months Ended June 30, 2019 Increase (Decrease) Due to Changes in | |||||||||||||||||
(dollars in thousands) | Volume | Rate | Total | ||||||||||||||
Interest-earning assets: | |||||||||||||||||
Loans, net of unearned fees | $ | 11,530 | $ | (7,324) | $ | 4,206 | |||||||||||
Investment securities, taxable | (988) | 138 | (850) | ||||||||||||||
Investment securities, tax-exempt | 76 | (62) | 14 | ||||||||||||||
Deposits in banks and short term investments | 1,412 | (1,784) | (372) | ||||||||||||||
Total interest-earning assets (FTE) | 12,030 | (9,032) | 2,998 | ||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||
Interest-Bearing Demand and Savings Deposits | 1,003 | (1,635) | (632) | ||||||||||||||
Time Deposits | (512) | 11 | (501) | ||||||||||||||
Federal Home Loan Bank Advances | (114) | 76 | (38) | ||||||||||||||
Paycheck Protection Program Liquidity Facility | — | 87 | 87 | ||||||||||||||
Other Borrowed Money | 804 | (785) | 19 | ||||||||||||||
Total interest-bearing liabilities | 1,181 | (2,246) | (1,065) | ||||||||||||||
Increase in net interest income (FTE) | $ | 10,849 | $ | (6,786) | $ | 4,063 |
Table 5 - Noninterest Income | ||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended June 30, | Change | Six months ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Amount | Percent | 2020 | 2019 | Amount | Percent | |||||||||||||||||||||||||||||||||||||||||||
Service charges on deposits | 886 | $ | 1,070 | $ | (184) | (17.2) | % | $ | 2,190 | $ | 2,034 | $ | 156 | 7.7 | % | |||||||||||||||||||||||||||||||||||
Other service charges, commissions and fees | 1,522 | 1,110 | 412 | 37.1 | 2,785 | 2,010 | 775 | 38.6 | ||||||||||||||||||||||||||||||||||||||||||
Mortgage fee income | 1,827 | 544 | 1,283 | 235.8 | 3,089 | 687 | 2,402 | 349.6 | ||||||||||||||||||||||||||||||||||||||||||
Gain on sale of SBA loans | 46 | — | 46 | 100.0 | 256 | — | 256 | 100.0 | ||||||||||||||||||||||||||||||||||||||||||
Securities gains | — | 65 | (65) | (100.0) | 293 | 65 | 228 | 350.8 | ||||||||||||||||||||||||||||||||||||||||||
Other noninterest income | 562 | 1,211 | (649) | (53.6) | 791 | 1,538 | (747) | (48.6) | ||||||||||||||||||||||||||||||||||||||||||
Total noninterest income | $ | 4,843 | $ | 4,000 | $ | 843 | 21.08 | % | $ | 9,404 | $ | 6,334 | $ | 3,070 | 48.47 | % |
Table 6 - Noninterest Expense | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Three months ended June 30, | Change | Six months ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Amount | Percent | 2020 | 2019 | Amount | Percent | |||||||||||||||||||||||||||||||||||||
Salaries and employee benefits | $ | 7,729 | $ | 6,292 | $ | 1,437 | 22.8 | % | $ | 15,227 | $ | 11,663 | $ | 3,564 | 30.6 | % | ||||||||||||||||||||||||||||
Occupancy and equipment | 1,316 | 1,144 | 172 | 15.0 | 2,634 | 2,169 | 465 | 21.4 | ||||||||||||||||||||||||||||||||||||
Acquisition-related expenses | 220 | 1,928 | (1,708) | (88.6) | 287 | 1,961 | (1,674) | (85.4) | ||||||||||||||||||||||||||||||||||||
Other noninterest expense | 4,110 | 3,650 | 460 | 12.6 | 8,605 | 6,247 | 2,358 | 37.7 | ||||||||||||||||||||||||||||||||||||
Total noninterest expense | $ | 13,375 | $ | 13,014 | $ | 361 | 2.8 | % | $ | 26,753 | $ | 22,040 | $ | 4,713 | 21.4 | % |
Table 7 - Loans Outstanding | ||||||||||||||
(dollars in thousands) | ||||||||||||||
June 30, 2020 | December 31, 2019 | |||||||||||||
Construction, land and land development | $ | 131,797 | $ | 96,097 | ||||||||||
Other commercial real estate | 518,141 | 540,239 | ||||||||||||
Total commercial real estate | 649,938 | 636,336 | ||||||||||||
Residential real estate | 188,339 | 194,796 | ||||||||||||
Commercial, financial, & agricultural | 250,915 | 114,360 | ||||||||||||
Consumer and other | 24,785 | 23,322 | ||||||||||||
Total loans | $ | 1,113,977 | $ | 968,814 | ||||||||||
As a percentage of total loans: | ||||||||||||||
Construction, land and land development | 11.8 | % | 9.9 | % | ||||||||||
Other commercial real estate | 46.5 | % | 55.8 | % | ||||||||||
Total commercial real estate | 58.3 | % | 65.7 | % | ||||||||||
Residential real estate | 16.9 | % | 20.1 | % | ||||||||||
Commercial, financial & agricultural | 22.6 | % | 11.8 | % | ||||||||||
Consumer and other | 2.2 | % | 2.4 | % | ||||||||||
Total loans | 100 | % | 100 | % |
Table 8 - Analysis of Allowance for Loan Loss | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
June 30, 2020 | June 30, 2019 | ||||||||||||||||||||||
Reserve | %* | Reserve | %* | ||||||||||||||||||||
Construction, land and land development | $ | 759 | 11.8 | % | $ | 12 | 9.9 | % | |||||||||||||||
Other commercial real estate | 5,711 | 46.5 | % | 4,430 | 55.8 | % | |||||||||||||||||
Residential real estate | 1,631 | 16.9 | % | 845 | 20.1 | % | |||||||||||||||||
Commercial, financial, & agricultural | 1,913 | 22.6 | % | 1,421 | 11.8 | % | |||||||||||||||||
Consumer and other | 275 | 2.2 | % | 81 | 2.4 | % | |||||||||||||||||
$ | 10,289 | 100 | % | $ | 6,789 | 100 | % |
Table 9 - Summary of Allowance for Loan Loss | ||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | |||||||||||||||||||||||
Allowance for loan loss - beginning balance | $ | 8,384 | $ | 6,589 | $ | 6,863 | $ | 7,277 | ||||||||||||||||||
Charge-offs: | ||||||||||||||||||||||||||
Construction, land and land development | 4 | — | 4 | 29 | ||||||||||||||||||||||
Other commercial real estate | — | — | 30 | 119 | ||||||||||||||||||||||
Residential real estate | 16 | 18 | 80 | 647 | ||||||||||||||||||||||
Commercial, financial, & agricultural | — | 28 | 68 | 125 | ||||||||||||||||||||||
Consumer and other | 364 | 109 | 715 | 179 | ||||||||||||||||||||||
Total loans charged-off | 384 | 155 | 897 | 1,099 | ||||||||||||||||||||||
Recoveries: | ||||||||||||||||||||||||||
Construction, land and land development | 12 | 37 | 25 | 54 | ||||||||||||||||||||||
Other commercial real estate | 21 | 7 | 26 | 41 | ||||||||||||||||||||||
Residential real estate | 6 | 110 | 10 | 159 | ||||||||||||||||||||||
Commercial, financial, & agricultural | 19 | 11 | 20 | 17 | ||||||||||||||||||||||
Consumer and other | 31 | 11 | 86 | 30 | ||||||||||||||||||||||
Total recoveries | 89 | 176 | 167 | 301 | ||||||||||||||||||||||
Net charge-offs | 295 | (21) | 730 | 798 | ||||||||||||||||||||||
Provision for loan loss | 2,200 | 179 | 4,156 | 310 | ||||||||||||||||||||||
Allowance for loan loss - ending balance | $ | 10,289 | $ | 6,789 | $ | 10,289 | $ | 6,789 | ||||||||||||||||||
Net charge-offs to average loans (annualized) | 0.14 | % | 0.30 | % | 0.17 | % | 0.19 | % | ||||||||||||||||||
Allowance for loan losses to total loans | 0.92 | % | 0.84 | % | 0.92 | % | 0.84 | % | ||||||||||||||||||
Allowance to nonperforming loans | 89.79 | % | 67.06 | % | 89.79 | % | 67.06 | % |
Table 10 - Nonperforming Assets(1) | ||||||||||||||
(dollars in thousands) | ||||||||||||||
June 30, 2020 | December 31, 2019 | |||||||||||||
Nonaccrual loans | $ | 11,459 | $ | 9,179 | ||||||||||
Loans past due 90 days and accruing | — | — | ||||||||||||
Other real estate owned | 1,769 | 1,320 | ||||||||||||
Repossessed assets | 17 | 13 | ||||||||||||
Total nonperforming assets | $ | 13,245 | $ | 10,512 | ||||||||||
Nonaccrual loans by loan segment | ||||||||||||||
Construction, land and land development | $ | 187 | $ | 32 | ||||||||||
Commercial real estate | 5,645 | 3,738 | ||||||||||||
Residential real estate | 3,549 | 3,643 | ||||||||||||
Commercial, financial & agriculture | 1,875 | 1,628 | ||||||||||||
Consumer & other | 203 | 138 | ||||||||||||
Total nonaccrual loans | $ | 11,459 | $ | 9,179 | ||||||||||
NPAs as a percentage of total loans and OREO | 1.19 | % | 1.08 | % | ||||||||||
NPAs as a percentages of total assets | 0.75 | % | 0.69 | % | ||||||||||
Nonaccrual loans as a percentage of total loans | 1.03 | % | 0.95 | % | ||||||||||
Table 11 - Deposits | ||||||||||||||
(dollars in thousands) | ||||||||||||||
June 30, 2020 | December 31, 2019 | |||||||||||||
Noninterest-bearing deposits | $ | 328,850 | $ | 232,635 | ||||||||||
Interest-bearing deposits | 685,669 | 624,658 | ||||||||||||
Savings | 105,593 | 88,970 | ||||||||||||
Time, $250,000 and over | 41,214 | 55,677 | ||||||||||||
Other time | 260,432 | 291,802 | ||||||||||||
Total deposits | 1,421,758 | $ | 1,293,742 |
Table 12 - Capital Ratio Requirements | ||||||||||||||
Minimum Requirement | Well-capitalized¹ | |||||||||||||
Risk-based ratios: | ||||||||||||||
Common equity tier 1 capital (CET1) | 4.5 | % | 6.5 | % | ||||||||||
Tier 1 capital | 6.0 | 8.0 | ||||||||||||
Total capital | 8.0 | 10.0 | ||||||||||||
Leverage ratio | 4.0 | 5.0 | ||||||||||||
(1) The prompt corrective action provisions are only applicable at the bank level. |
Table 13 - Capital Ratios | ||||||||||||||
Company | June 30, 2020 | December 31, 2019 | ||||||||||||
CET1 risk-based capital ratio | 10.26 | % | 10.33 | % | ||||||||||
Tier 1 risk-based capital ratio | 12.39 | 12.52 | ||||||||||||
Total risk-based capital ratio | 13.32 | 13.17 | ||||||||||||
Leverage ratio | 9.23 | 8.92 | ||||||||||||
Colony Bank | ||||||||||||||
CET1 risk-based capital ratio | 12.99 | % | 13.54 | % | ||||||||||
Tier 1 risk-based capital ratio | 12.99 | 13.52 | ||||||||||||
Total risk-based capital ratio | 13.92 | 14.19 | ||||||||||||
Leverage ratio | 9.70 | 9.77 |
Table 14 - Interest Sensitivity | |||||||||||
Increase (Decrease) in Net Interest Income from Base Scenario at | |||||||||||
June 30, 2020 | December 31, 2019 | ||||||||||
Changes in rates | |||||||||||
200 basis point increase | 13.83% | 3.87% | |||||||||
100 basis point increase | 7.57 | 2.54 | |||||||||
100 basis point decrease | 0.68 | (4.12) |
101 Interactive data files pursuant to Rule 405 of Regulation S-T, formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019; (ii) Condensed Consolidated Statements of Income for the Three and Six Months Ended June 30, 2020 and 2019; (iii) Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2020 and 2019; (iv) Condensed Consolidated Statements of Changes in Shareholders’ Equity for the Three and Six Months Ended June 30, 2020 and 2019; (v) Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2020 and 2019; and (vi) Notes to Unaudited Condensed Consolidated Financial Statements* | ||
104 The cover page from Colony Bankcorp’s Quarterly Report on Form 10-Q for the three and six months ended June 30, 2020 (formatted in Inline XBRL and included in Exhibit 101) | ||
Colony Bankcorp, Inc. | |||||
/s/ T. Heath Fountain | |||||
Date: August 10, 2020 | T. Heath Fountain | ||||
President and Chief Executive Officer | |||||
(Principal Executive Officer) | |||||
/s/ Tracie Youngblood | |||||
Date: August 10, 2020 | Tracie Youngblood | ||||
Executive Vice President and Chief Financial Officer | |||||
(Principal Financial Officer) |
1. | I have reviewed this Form 10-Q of Colony Bankcorp, 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 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 officer 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; and |
5. | The registrant's other certifying officer 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 Form 10-Q of Colony Bankcorp, 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 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 officer 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; and |
5. | The registrant's other certifying officer 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. |
Consolidated Balance Sheets (Parentheticals) - $ / shares |
Jun. 30, 2020 |
Dec. 31, 2019 |
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Statement of Financial Position [Abstract] | ||
Preferred Stock, No Par Value (in dollars per share) | $ 0 | $ 0 |
Preferred Stock, Shares Authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued (in shares) | 0 | 0 |
Preferred Stock, Shares Outstanding (in shares) | 0 | 0 |
Common Stock, Par Value (in dollars per share) | $ 1.00 | $ 1.00 |
Common Stock, Shares Authorized (in shares) | 20,000,000 | 20,000,000 |
Common Stock, Shares, Issued (in shares) | 9,498,783 | 9,498,783 |
Common Stock, Shares, Outstanding (in shares) | 9,498,783 | 9,498,783 |
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
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Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2,214 | $ 2,101 | $ 3,817 | $ 4,936 |
Other comprehensive income: | ||||
Unrealized gains on securities arising during the period | 2,195 | 6,720 | 8,697 | 10,724 |
Tax effect | (461) | (1,411) | (1,827) | (2,252) |
Realized (gains) on sale of available for sale securities | 0 | (65) | (293) | (65) |
Tax effect | 0 | 14 | 62 | 14 |
Change in unrealized gains on securities available for sale, net of reclassification adjustment and tax effects | 1,734 | 5,258 | 6,639 | 8,421 |
Comprehensive income | $ 3,948 | $ 7,359 | $ 10,456 | $ 13,357 |
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||||
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Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Apr. 22, 2020 |
Mar. 31, 2020 |
Dec. 31, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
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Statement of Stockholders' Equity [Abstract] | |||||||||
Dividends on common shares (in dollars per share) | $ 0.10 | ||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.10 | $ 0.075 | $ 0.20 | $ 0.15 | |||||
Stockholders' Equity Attributable to Parent | $ 138,594 | $ 126,509 | $ 138,594 | $ 126,509 | $ 136,072 | $ 130,506 | $ 101,066 | $ 95,692 |
Summary of Significant Accounting Policies |
6 Months Ended |
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Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Presentation Colony Bankcorp, Inc. (the “Company”) is a bank holding company located in Fitzgerald, Georgia. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Colony Bank, Fitzgerald, Georgia (the “Bank”). The “Company” or “our,” as used herein, includes Colony Bank. In July 2019, a new subsidiary of the Company was incorporated under the name Colony Risk Management, Inc. Colony Risk Management, Inc. is a subsidiary of the Company and is located in Las Vegas, Nevada. It is a captive insurance subsidiary which insures various liability and property damage policies for the Company and its related subsidiaries. Colony Risk Management is regulated by the State of Nevada Division of Insurance. All adjustments consisting of normal recurring accruals which are, in the opinion of management, necessary for fair presentation of the interim consolidated financial statements, have been included and fairly and accurately present the financial position, results of operations and cash flows of the Company. All significant intercompany accounts have been eliminated in consolidation. The accounting and reporting policies of the Company conform to generally accepted accounting principles and practices utilized in the commercial banking industry for interim financial information and Regulation S-X. Accordingly, the accompanying unaudited interim consolidated financial statements do not include all of the information or notes required for complete financial statements. The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the results which may be expected for the year ending December 31, 2020. These statements should be read in conjunction with the consolidated financial statements and notes thereto in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 (“2019 10-K”). Nature of Operations The Bank provides a full range of retail, commercial and mortgage banking services for consumers and small- to medium-size businesses located primarily in central, south and coastal Georgia. The Bank is headquartered in Fitzgerald, Georgia with banking and mortgage offices in Albany, Ashburn, Athens, Broxton, Centerville, Columbus, Cordele, Douglas, Eastman, Fitzgerald, LaGrange, Leesburg, Macon, Moultrie, Quitman, Rochelle, Savannah, Soperton, Sylvester, Statesboro, Thomaston, Tifton, Valdosta and Warner Robins. Lending and investing activities are funded primarily by deposits gathered through its retail banking office network. Use of Estimates In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the balance sheet date and revenues and expenses for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans and fair value of assets acquired and liabilities assumed in a business combination, including goodwill impairment. Reclassifications In certain instances, amounts reported in prior years’ consolidated financial statements have been reclassified to conform to statement presentations selected for 2020. Such reclassifications have not materially affected previously reported stockholders’ equity or net income. Concentrations of Credit Risk Concentrations of credit risk can exist in relation to individual borrowers or groups of borrowers, certain types of collateral, certain types of industries, or certain geographic regions. The Company has a concentration in real estate loans as well as a geographic concentration that could pose an adverse credit risk. At June 30, 2020, approximately 86% of the Company’s loan portfolio was concentrated in loans secured by real estate. A substantial portion of borrowers’ ability to honor their contractual obligations is dependent upon the viability of the real estate economic sector. Management continues to monitor these concentrations and has considered these concentrations in its allowance for loan loss analysis. The success of the Company is dependent, to a certain extent, upon the economic conditions in the geographic markets it serves. Adverse changes in the economic conditions in these geographic markets would likely have a material adverse effect on the Company’s results of operations and financial condition. The operating results of the Company depend primarily on its net interest income. Accordingly, operations are subject to risks and uncertainties surrounding the exposure to changes in the interest rate environment. At times, the Company may have cash and cash equivalents at financial institutions in excess of federal deposit insurance limits. The Company places its cash and cash equivalents with high credit quality financial institutions whose credit ratings are monitored by management to minimize credit risk. Changes in Accounting Principles and Effects of New Accounting Pronouncements ASU 2016-13, Financial Instruments – Credit Losses (Topic 326). This ASU sets forth a “current expected credit loss” (CECL) model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supported forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. On October 16, 2019, FASB voted to extend the delay of the effective date of this ASU for smaller reporting companies, such as the Company, until fiscal years beginning after December 15, 2022. The Company is currently assessing the impact of the adoption of this ASU on its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This update removes several exceptions related to intraperiod tax allocation when there is a loss from continuing operations and income from other items, foreign subsidiaries becoming equity method investments and vice versa, and calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The guidance also amends requirements related to franchise tax that is partially based on income, a step up in the tax basis of goodwill, allocation of consolidated tax expense to a legal entity not subject to tax in its separate financial statements, the effects of enacted changes in tax laws and other minor codification improvements regarding employee stock ownership plans and investments in qualified affordable housing projects. For public entities, this guidance is effective for fiscal years beginning after December 15, 2020. The Company does not expect the new guidance to have a material impact on the consolidated financial statements. In January 2020, the FASB issued ASU No. 2020-01, "Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)—Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the Emerging Issues Task Force)". This update clarifies whether an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative and how to account for certain forward contracts and purchased options to purchase securities. For public entities, this guidance is effective for fiscal years beginning after December 15, 2020. The Company does not expect the new guidance to have a material impact on the consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04 "Reference Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU 2020-04"). ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of ) reference rate reform on financial reporting. The amendments are effective for the Company as of March 12, 2020 through December 31, 2022. The Company does not believe this standard will have a material impact on its consolidated financial statements. Operating, Accounting and Reporting Considerations Related to COVID-19 The COVID-19 pandemic has negatively impacted the global economy, including the Company’s primary metropolitan markets. In response to this crisis, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was passed by Congress and signed into law on March 27, 2020. The CARES Act provides an estimated $2.2 trillion to fight the COVID-19 pandemic and stimulate the economy by supporting individuals and businesses through loans, grants, tax changes, and other types of relief. Some of the provisions applicable to the Company include, but are not limited to: •Paycheck Protection Program - The CARES Act established the Paycheck Protection Program “PPP”), an expansion of the Small Business Administration’s 7(a) loan program and the Economic Injury Disaster Loan Program (“EIDL”), administered directly by the SBA. Also in response to the COVID-19 pandemic, the Board of Governors of the Federal Reserve System (“FRB”), the Federal Deposit Insurance Corporation (“FDIC”), the National Credit Union Administration (“NCUA”), the Office of the Comptroller of the Currency (“OCC”), and the Consumer Financial Protection Bureau (“CFPB”), in consultation with the state financial regulators (collectively, the “agencies”) issued a joint interagency statement (issued March 22, 2020; revised statement issued April 7, 2020). Some of the provisions applicable to the Company include, but are not limited to: •Accounting for Loan Modifications - Loan modifications that do not meet the conditions of the CARES Act may still qualify as a modification that does not need to be accounted for as a TDR. The agencies confirmed with FASB staff that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not TDRs. This includes short-term (e.g., three months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or insignificant delays in payment, as long as such modifications are (1) related to COVID-19; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (a) 60 days after the date of termination of the national emergency declaration or (b) December 31, 2020. •Past Due Reporting - With regard to loans not otherwise reportable as past due, financial institutions are not expected to designate loans with deferrals granted due to COVID-19 as past due because of the deferral. A loan’s payment date is governed by the due date stipulated in the legal agreement. If a financial institution agrees to a payment deferral, these loans would not be considered past due reporting during the period of the deferral. •Nonaccrual Status and Charge-offs - During short-term COVID-19 modifications, these loans generally should not be reported as nonaccrual or as classified. As such, beginning in late March 2020, the Company provided relief programs consisting primarily of 90-day payment deferral relief of principal and interest to borrowers negatively impacted by COVID-19 and has accounted for these loan modifications in accordance with ASC 310-40. In addition, the Company also provided principal only payment deferral relief to borrowers of which interest income has been recognized during the deferment period on these interest-only loans.
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Business Acquisitions |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisitions | Business Acquisitions Acquisition of LBC Bancshares, Inc. On May 1, 2019, the Company completed its acquisition of LBC Bancshares, Inc. (“LBC”), a bank holding company headquartered in LaGrange, Georgia. Upon consummation of the acquisition, LBC was merged with and into the Company, with Colony as the surviving entity in the merger. At that time, LBC’s wholly owned bank subsidiary, Calumet Bank, was also merged with and into the Bank. The acquisition expanded the Company’s market presence, as Calumet Bank had two full-service banking locations, one each in LaGrange, Georgia and Columbus, Georgia, as well as a loan production office in Atlanta, Georgia. Under the terms of the Agreement and Plan of Merger, each LBC shareholder had the option to receive either $23.50 in cash or 1.3239 shares of the Company’s common stock in exchange for each share of LBC common stock, subject to customary proration and allocation procedures such that 55% of LBC shares received the stock consideration and 45% received the cash consideration, with at least 50% of the merger consideration paid in the Company's common stock. As a result, the Company issued 1,053,875 common shares at a fair value of $18.2 million and paid $15.3 million in cash to the former shareholders of LBC as merger consideration. The merger was effected by the issuance of shares of the Company’s common stock along with cash consideration to shareholders to LBC. The assets and liabilities of LBC as of the effective date of the merger were recorded at their respective estimated fair values and combined with those of the Company. The excess of the purchase price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable intangible assets with the remaining excess allocated to goodwill. Goodwill of $15.2 million was recorded as part of the LBC acquisition and is not expected to be deductible for income tax purposes. The following table presents the assets acquired and liabilities assumed of LBC as of May 1, 2019, and their fair value estimates. The fair value estimates were subject to refinement for up to one year after the closing date of the acquisition for new information obtained about facts and circumstances that existed at the acquisition date. The Company continues its evaluation of the facts and circumstances available as of May 1, 2019, to assign fair values to assets acquired and liabilities assumed, which could result in further adjustments to the fair values presented below.
(1) Subsequent adjustments were done within the one year period allowed after the acquisition. In the acquisition, the Company purchased $130.6 million of loans at fair value, net of $2.2 million, or 1.63%, estimated discount to the outstanding principal balance. Of the total loans acquired, management identified $176,000 that were considered to be credit impaired and are accounted for under ASC Topic 310-30. The table below summarizes the total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and fair value of the loans as of the acquisition date for purchased credit impaired loans. Contractually required principal and interest payments have been adjusted for estimated prepayments.
The following table presents the acquired loan data for the LBC acquisition.
Acquisition of PFB Mortgage from Planters First Bank On May 1, 2019, the Bank completed its acquisition of PFB Mortgage, the secondary market mortgage business of Planters First Bank for a total cash consideration of $833,000.The assets acquired included premises and equipment as well as all pipeline loans. The assets acquired were recorded at their respective estimated fair values as of the effective date of the transaction. The excess of the purchase price over fair value of net assets acquired was allocated to goodwill. The following table presents the assets acquired as of May 1, 2019, and their fair value estimates. The fair value estimates were subject to refinement for up to one year after the closing date of the acquisition for new information obtained about facts and circumstances that existed at the acquisition date. The Company continues its evaluation of the facts and circumstances available as of May 1, 2019, to assign fair values to assets acquired and liabilities assumed, which could result in further adjustments to the fair values presented below.
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Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities The amortized cost and estimated fair value of securities available for sale along with gross unrealized gains and losses are summarized as follows:
The amortized cost and fair value of investment securities as of June 30, 2020, by contractual maturity, are shown hereafter. Expected maturities may differ from contractual maturities for certain investments because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. This is often the case with mortgage-backed securities, which are disclosed separately in the table below.
Proceeds from the sale of investment securities totaled $15.3 million and $56.8 million for the six months ended June 30, 2020 and 2019, respectively. The sale of investment securities for the six months ended June 30, 2020 and 2019 resulted in gross realized gains of $355,000 and $117,000 and losses of $62,000 and $52,000, respectively. Proceeds from the sale of investment securities held to maturity totaled $1.8 million for the first six months of 2019, and was sold at par. Investment securities having a carrying value approximating $109.3 million and $122.3 million were pledged to secure public deposits and for other purposes as of June 30, 2020 and December 31, 2019, respectively. Information pertaining to securities with gross unrealized losses at June 30, 2020 and December 31, 2019 aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:
Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. At June 30, 2020, 23 securities have unrealized losses. These securities are guaranteed by either the U.S. Government, other governments or U.S. corporations. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred and the results of reviews of the issuer’s financial condition. The unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. As management has the ability to hold debt securities until maturity, or for the foreseeable future if classified as available-for-sale, no declines are deemed to be other than temporary.
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Loans |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | Loans The following table presents the composition of loans segregated by legacy and purchased loans and by class of loans, as of June 30, 2020 and December 31, 2019. Purchased loans are defined as loans that were acquired in bank acquisitions.
Commercial and industrial loans are extended to a diverse group of businesses within the Company’s market area. These loans are often underwritten based on the borrower’s ability to service the debt from income from the business. Real estate construction loans often require loan funds to be advanced prior to completion of the project. Due to uncertainties inherent in estimating construction costs, changes in interest rates and other economic conditions, these loans often pose a higher risk than other types of loans. Consumer loans are originated at the Bank level. These loans are generally smaller loan amounts spread across many individual borrowers to help minimize risk. The change in total legacy loans was primarily a result of commercial and industrial PPP loan originations during the second quarter of 2020, totaling $137.8 million at June 30, 2020. Credit Quality Indicators. As part of the ongoing monitoring of the credit quality of the loan portfolio, management tracks certain credit quality indicators including trends related to (1) the risk grade assigned to commercial and consumer loans, (2) the level of classified commercial loans, (3) net charge-offs, (4) nonperforming loans, and (5) the general economic conditions in the Company’s geographic markets. The Company uses an eight category risk grading system to assign a risk grade to each loan in the portfolio. The following is a description of the general characteristics of the grades: •Grades 1 and 2 – Borrowers with these assigned grades range in risk from virtual absence of risk to minimal risk. Such loans may be secured by Company-issued and controlled certificates of deposit or properly margined equity securities or bonds. Other loans comprising these grades are made to companies that have been in existence for a long period of time with many years of consecutive profits and strong equity, good liquidity, excellent debt service ability and unblemished past performance, or to exceptionally strong individuals with collateral of unquestioned value that fully secures the loans. Loans in this category fall into the “pass” classification. •Grades 3 and 4 – Loans assigned these “pass” risk grades are made to borrowers with acceptable credit quality and risk. The risk ranges from loans with no significant weaknesses in repayment capacity and collateral protection to acceptable loans with one or more risk factors considered to be more than average. •Grade 5 – This grade includes “special mention” loans on management’s watch list and is intended to be used on a temporary basis for pass grade loans where risk-modifying action is intended in the short-term. •Grade 6 – This grade includes “substandard” loans in accordance with regulatory guidelines. This category includes borrowers with well-defined weaknesses that jeopardize the payment of the debt in accordance with the agreed terms. Loans considered to be impaired are assigned this grade, and these loans often have assigned loss allocations as part of the allowance for loan and lease losses. Generally, loans on which interest accrual has been stopped would be included in this grade. •Grades 7 and 8 – These grades correspond to regulatory classification definitions of “doubtful” and “loss,” respectively. In practice, any loan with these grades would be for a very short period of time, of which the Company has no loans with these assigned grades at June 30, 2020. Management manages the Company’s problem loans in such a way that uncollectible loans or uncollectible portions of loans are charged off immediately with any residual, collectible amounts assigned a risk grade of 6. The following table presents the loan portfolio, excluding purchased loans, by credit quality indicator (risk grade) as of June 30, 2020 and December 31, 2019. Those loans with a risk grade of 1, 2, 3 or 4 have been combined in the pass column for presentation purposes.
The following table presents the purchased loan portfolio by credit quality indicator (risk grade) as of June 30, 2020 and December 31, 2019. Those loans with a risk grade of 1, 2, 3 or 4 have been combined in the pass column for presentation purposes. For the period ending June 30, 2020, the Company did not have any loans classified as “doubtful” or a “loss”.
A loan’s risk grade is assigned at loan origination and is based on the financial strength of the borrower and the type of collateral. Loan risk grades are subject to review at various times throughout the year as part of the Company’s ongoing loan review process. Loans with an assigned risk grade of six or below and an outstanding balance of $250,000 or more are reassessed on a quarterly basis. During this reassessment process individual reserves may be identified and placed against certain loans which are not considered impaired. In assessing the overall economic condition of the markets in which it operates, the Company monitors the unemployment rates for its major service areas. The unemployment rates are reviewed on a quarterly basis as part of the allowance for loan loss determination. Loans are placed on nonaccrual status if principal or interest payments become 90 days past due or when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory guidelines. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due. The following table presents the aging of the amortized cost basis in legacy loans by aging category and accrual status as of June 30, 2020 and December 31, 2019:
The following table presents the aging of the amortized cost basis in purchased loans by aging category and accrual status as of June 30, 2020 and December 31, 2019:
The following table details impaired loan data, including purchased credit impaired loans, as of June 30, 2020.
The following table details impaired loan data as of December 31, 2019.
Interest income recorded on impaired loans during the three months ended June 30, 2020 and 2019 were $104,000 and $274,000, respectively and during the six months ended June 30, 2020 and 2019 were $154,000 and $477,000, respectively. Troubled Debt Restructings The restructuring of a loan is considered a troubled debt restructuring ("TDRs") if both the borrower is experiencing financial difficulties and the Company has granted a concession to the terms of the loan. Concessions may include interest rate reductions to below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. As discussed in Note 1 of the Notes to Consolidated Financial Statements for the year ended December 31, 2019, which are included in the Company’s 2019 Form 10-K, once a loan is identified as a TDR, it is accounted for as an impaired loan. The Company had no unfunded commitments to lend to a customer that has a troubled debt restructured loan as of June 30, 2020. The Company had no loan contracts restructured during the three or six month periods ended June 30, 2020 and 2019. Loans modified in a troubled debt restructuring are considered to be in default once the loan becomes 90 days past due. A TDR may cease being classified as impaired if the loan is subsequently modified at market terms and, has performed according to the modified terms for at least six months, and there has not been any prior principal forgiveness on a cumulative basis. The Company had no loans that subsequently defaulted during the three or six months ended June 30, 2020 and 2019. Modifications in Response to COVID-19 Certain borrowers are currently unable to meet their contractual payment obligations because of the adverse effects of the COVID-19 pandemic. To help mitigate these effects, loan customers may apply for a deferral of payments, or portions thereof, for up to three months. In the absence of other intervening factors, such short-term modifications made on a good faith basis are not categorized as troubled debt restructurings, nor are loans granted payment deferrals related to the COVID-19 pandemic reported as past due or placed on nonaccrual status (provided the loans were not past due or on nonaccrual status prior to the deferral). As of June 30, 2020, the Company had approximately $113.2 million in loans still under their modified terms. The Company’s modification program included payment deferrals, interest only, and other forms of modifications. See Note 1 - Summary of Significant Accounting Policies for more information.
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Allowance for Loan Losses |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses | Allowance for Loan Losses The following tables detail activity in the allowance for loan losses, segregated by class of loan, for the three and six months periods ended June 30, 2020 and June 30, 2019. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other loan categories and periodically may result in reallocation within the provision categories.
Management continually evaluates the allowance for loan losses methodology seeking to refine and enhance this process as appropriate, and it is likely that the methodology will continue to evolve over time. The Company determines its individual reserves during its quarterly review of substandard loans. This process involves reviewing all loans with a risk grade of 6 or greater and an outstanding balance of $250,000 or more, regardless of the loans impairment classification.
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Leases |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASU No. 2016-02 and all subsequent ASUs that modified this topic (collectively referred to as “Topic 842”). For the Company, Topic 842 primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. Substantially all of the leases in which the Company is the lessee are comprised of real estate for branches and office space with terms extending through 2027. All of our leases are classified as operating leases, and therefore, were previously not recognized on the Company’s consolidated balance sheet. With the adoption of Topic 842, operating lease arrangements are required to be recognized on the consolidated balance sheet as a right-of-use (“ROU”) asset and a corresponding lease liability. The following table represents the consolidated balance sheet classification of the Company’s ROU assets and liabilities. The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months or less), or equipment leases (deemed immaterial) on the consolidated balance sheet.
The calculated amount of the ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to January 1, 2020, the rate for the remaining lease term as of January 1, 2020 was used. Operating lease cost was $64,000 and $31,000 for the three months ended June 30, 2020 and 2019, respectively, and $116,000 and $61,000 for the six months ended June 30, 2020 and 2019 respectively. As of June 30, 2020, the weighted average remaining lease term was 4.59 years and the weighted average discount rate was 1.78%. The following table represents the future maturities of the operating lease liabilities and other lease information as of June 30, 2020.
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Borrowings |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | Borrowings The following table presents information regarding the Company’s outstanding borrowings at June 30, 2020 and December 31, 2019:
Advances from the Federal Home Loan Bank (“FHLB”) have maturities ranging from 2021 to 2029 and interest rates ranging from 1.05% to 3.51%. As collateral on the outstanding FHLB advances, the Company has provided a blanket lien on its portfolio of qualifying residential first mortgage loans, commercial loans, multifamily loans and HELOC loans. At June 30, 2020, the lendable collateral of those loans pledged is $103.6 million. At June 30, 2020, the Company had remaining credit availability from the FHLB of $340.1 million. The Company may be required to pledge additional qualifying collateral in order to utilize the full amount of the remaining credit line. On May 1, 2019, the Company completed a borrowing arrangement with a correspondent bank for $10.0 million. The term note is secured by the Bank’s stock, expires on May 1, 2024, and bears a fixed interest rate of 4.70%. The proceeds were used for the acquisition of LBC Bancshares, Inc. and its subsidiary, Calumet Bank. As of June 30, 2020, the outstanding balance totaled $8.8 million. On May 1, 2019, the Company completed a revolving credit arrangement with a correspondent bank with a maximum line amount of $10.0 million. This line of credit is secured by the Bank’s stock, expires on May 1, 2021, and bears a variable interest rate of Wall Street Journal Prime minus 0.40%. The Company advanced $5.3 million that was used toward the acquisition of LBC Bancshares, Inc. and its subsidiary, Calumet Bank. As of June 30, 2020, the outstanding balance totaled $5.3 million. On April 20, 2020 the Company completed a Paycheck Protection Program Liquidity Facility (PPPLF) credit arrangement with The Federal Reserve Bank. This line of credit is secured by PPP loans and bears a fixed interest rate of 0.35% with a maturity date equal to the maturity date of the related PPP loans, with the PPP loans maturing either or five years from the origination date of the PPP loan. The Company advanced $140.7 million that was used toward the funding of PPP loans. As of June 30, 2020, the outstanding balance totaled $134.5 million, and the Company's PPP loans and related PPPLF funding had a weighted average life of approximately 2 years. The aggregate stated maturities of other borrowed money at June 30, 2020 are as follows:
The Company also has available federal funds lines of credit with various financial institutions totaling $55.0 million, none of which were outstanding at June 30, 2020. The Company has the ability to borrow funds from the Federal Reserve Bank (“FRB”) of Atlanta utilizing the discount window. The discount window is an instrument of monetary policy that allows eligible institutions to borrow money from the FRB on a short-term basis to meet temporary liquidity shortages caused by internal or external disruptions. At June 30, 2020, the Company had borrowing capacity available under this arrangement, with no outstanding balances. The Company would be required to pledge certain available-for-sale investment securities as collateral under this agreement. The Company's Trust Preferred Securities are recorded as subordinated debentures on the consolidated balance sheets, but subject to certain limitations, qualify as Tier 1 Capital for regulatory capital purposes. At June 30, 2020 and December 31, 2019, Trust Preferred Securities was $24.2 million. The proceeds from the offerings were used to fund certain acquisitions, pay off holding company debt and inject capital into the bank subsidiary. The Trust preferred securities pay interest quarterly.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per ShareBasic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during each period. Diluted earnings per share reflects the potential dilution of restricted stock and common stock warrants. Net income available to common stockholders represents net income after preferred stock dividends. The following table presents earnings per share for the three and six months ended June 30, 2020 and 2019.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Credit-Related Financial Instruments. The Company is a party to credit related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and commercial letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance sheet instruments. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral held varies, but may include cash or cash equivalents, negotiable instruments, real estate, accounts receivable, inventory, oil, gas and mineral interests, property, plant, and equipment. At June 30, 2020 and December 31, 2019 the following financial instruments were outstanding whose contract amounts represent credit risk:
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for equity lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer. Unfunded commitments under commercial lines of credit, revolving credit lines and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines of credit are uncollateralized and usually do not contain a specified maturity date and may not be drawn upon to the total extent to which the Company is committed. Standby and performance letters of credit are conditional lending commitments issued by the Company to guarantee the performance of a customer to a third party. Those letters of credit are primarily issued to support public and private borrowing arrangements. Essentially all letters of credit issued have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Legal Contingencies. In the ordinary course of business, there are various legal proceedings pending against the Company and the Bank. As of June 30, 2020, the aggregate liabilities, if any, arising from such proceedings would not, in the opinion of management, have a material adverse effect on the Company’s consolidated financial position.
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Fair Value of Financial Instruments and Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments and Fair Value Measurements | Fair Value of Financial Instruments and Fair Value Measurements Generally accepted accounting standards in the U.S. require disclosure of fair value information about financial instruments, whether or not recognized on the face of the balance sheet, for which it is practicable to estimate that value. The assumptions used in the estimation of the fair value of the Company and the Bank’s financial instruments are detailed hereafter. Where quoted prices are not available, fair values are based on estimates using discounted cash flows and other valuation techniques. The use of discounted cash flows can be significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Generally accepted accounting principles related to Fair Value Measurements define fair value, establish a framework for measuring fair value, establish a three-level valuation hierarchy for disclosure of fair value measurement and enhance disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: •Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. •Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. •Level 3 inputs to the valuation methodology are unobservable and represent the Company’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. The following disclosures should not be considered a surrogate of the liquidation value of the Company, but rather a good-faith estimate of the increase or decrease in value of financial instruments held by the Company since purchase, origination or issuance. Cash and short-term investments – For cash, due from banks, bank-owned deposits and federal funds sold, the carrying amount is a reasonable estimate of fair value and is classified as Level 1. Investment securities – Fair values for investment securities are based on quoted market prices where available and classified as Level 1. If quoted market prices are not available, estimated fair values are based on quoted market prices of comparable instruments and classified as Level 2. If a comparable is not available, the investment securities are classified as Level 3. Other investments, at cost– The fair value of Federal Home Loan Bank stock approximates carrying value and is classified as Level 1. If quoted market prices are not available, estimated fair values are based on quoted market prices of comparable instruments and classified as Level 2. Loans held for sale – The fair value of loans held for sale is determined on outstanding commitments from third party investors in the secondary markets and is classified within Level 2 of the valuation hierarchy. Loans – The fair value of fixed rate loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings. For variable rate loans, the carrying amount is a reasonable estimate of fair value. Most loans are classified as Level 3. Deposit liabilities – The fair value of demand deposits, savings accounts and certain money market deposits is the amount payable on demand at the reporting date and is classified as Level 2. The fair value of deposits is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities and is classified as Level 2. Federal Home Loan Bank advances– The fair value of Federal Home Loan Bank advances is estimated by discounting the future cash flows using the current rates at which similar advances would be obtained. Federal Home Loan Bank advances are classified as Level 2. Paycheck Protection Liquidity Facility– The fair value of Paycheck Protection Liquidity Facility is estimated by discounting the future cash flows using the current rates at which similar advances would be obtained. Paycheck Protection Liquidity Facility are classified as Level 2. Other borrowings – The fair value of other borrowings is calculated by discounting contractual cash flows using an estimated interest rate based on current rates available to the Company for debt of similar remaining maturities and collateral terms. Other borrowings is classified as Level 2 due to their expected maturities. Disclosures of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis, are required in the financial statements. The carrying amount, estimated fair values, and placement in the fair value hierarchy of the Company’s financial instruments as of June 30, 2020 and December 31, 2019 are as follows:
Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include deferred income taxes and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring and nonrecurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy: Securities – Where quoted prices are available in an active market, securities are classified within level 1 of the valuation hierarchy. Level 1 inputs include securities that have quoted prices in active markets for identical assets. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flow. Examples of such instruments, which would generally be classified within level 2 of the valuation hierarchy, include certain collateralized mortgage and debt obligations and certain high-yield debt securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within level 3 of the valuation hierarchy. When measuring fair value, the valuation techniques available under the market approach, income approach and/or cost approach are used. The Company’s evaluations are based on market data and the Company employs combinations of these approaches for its valuation methods depending on the asset class. Impaired Loans – Impaired loans are those loans which the Company has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Other Real Estate – Other real estate owned assets are adjusted to fair value less estimated selling costs upon transfer of the loans to other real estate. Typically, an external, third-party appraisal is performed on the collateral upon transfer into the other real estate account to determine the asset’s fair value. Subsequent adjustments to the collateral’s value may be based upon either updated third-party appraisals or management’s knowledge of the collateral and the current real estate market conditions. Appraised amounts used in determining the asset’s fair value, whether internally or externally prepared, are discounted 10% to account for selling and marketing costs. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a level 3 classification of the inputs for determining fair value. Because of the high degree of judgment required in estimating the fair value of other real estate assets and because of the relationship between fair value and general economic conditions, we consider the fair value of other real estate assets to be highly sensitive to changes in market conditions. Assets Measured at Fair Value on a Recurring and Nonrecurring Basis – The following table presents the recorded amount of the Company’s assets measured at fair value on a recurring and nonrecurring basis as of June 30, 2020 and December 31, 2019, aggregated by the level in the fair value hierarchy within which those measurements fall. The table below includes only impaired loans with a specific reserve and only other real estate properties with a valuation allowance at June 30, 2020 and December 31, 2019. Those impaired loans and other real estate properties are shown net of the related specific reserves and valuation allowances.
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) The following table presents quantitative information about the significant unobservable inputs used in the fair value measurements for assets in level 3 of the fair value hierarchy measured on a nonrecurring basis at June 30, 2020 and December 31, 2019. This table is comprised primarily of collateral dependent impaired loans and other real estate:
The table below presents a reconciliation and statement of income classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (level 3) for the six months ended June 30, 2020 and 2019.
The Company’s policy is to recognize transfers in and transfers out of levels 1, 2 and 3 as of the end of a reporting period. There were no transfers of securities between levels for the three and six months ended June 30, 2020 and 2019. The following table presents quantitative information about recurring level 3 fair value measurements as of June 30, 2020 and December 31, 2019.
* The Company relies on a third-party pricing service to value its securities. The details of the unobservable inputs and other adjustments used by the third-party pricing service were not readily available to the Company.
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company’s operating segments include banking, mortgage banking and small business specialty lending division. The reportable segments are determined by the products and services offered, and internal reporting. The Bank segment derives its revenues from the delivery of full-service financial services, including retail and commercial banking services and deposit accounts. The Mortgage Banking segment derives its revenues from the origination and sales of residential mortgage loans held for sale. The Small Business Specialty Lending Division segment derives its revenue from the origination, sales and servicing of Small Business Administration loans and other government guaranteed loans. Segment performance is evaluated using net interest income and noninterest income. Income taxes are allocated based on income before income taxes, and indirect expenses (includes management fees) are allocated based on various internal factors for each segment. Transactions among segments are made at fair value. Information reported internally for performance assessment follows. The following tables present information reported internally for performance assessment for the three and six months ended June 30, 2020 and 2019:
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Regulatory Capital Matters |
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Banking And Thrift Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Capital Matters | Regulatory Capital Matters The amount of dividends payable to the parent company from the subsidiary bank is limited by various banking regulatory agencies. Upon approval by regulatory authorities, the Bank may pay cash dividends to the parent company in excess of regulatory limitations. The Company is subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and, possibly, additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios of total and Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. As of June 30, 2020, the interim final Basel III rules (“Basel III”) require the Company to also maintain minimum amounts and ratios of common equity Tier 1 capital to risk-weighted assets. These amounts and ratios as defined in regulations are presented hereafter. Management believes, as of June 30, 2020, the Company meets all capital adequacy requirements to which it is subject under the regulatory framework for prompt corrective action. In the opinion of management, there are no events or conditions since prior notification of capital adequacy from the regulators that have changed the institution’s category. The Basel III rules also require the implementation of a new capital conservation buffer comprised of common equity Tier 1 capital. The capital conservation buffer was phased in beginning January 1, 2016 at 0.625% of risk-weighted assets and increase each subsequent year by 0.625% until reaching its final level of 2.5% on January 1, 2019. The Bank is participating in the PPP and the PPPLF to fund PPP Loans. In accordance with regulatory guidance, PPP loans pledged as collateral for PPPLF, and PPPLF advances, are excluded from leverage capital ratios. PPP loans will also carry a 0% risk-weight for risk-based capital rules. The Board of Governors of the Federal Reserve raised the threshold for determining applicable of the Small Bank Holding Company and Savings and Loan Company Policy Statement in August 2018 from $1 billion to $3 billion in consolidated total assets to provide regulatory burden relief, therefore, the Company is no longer subject to the minimum capital requirements. The following table summarizes regulatory capital information as of June 30, 2020 and December 31, 2019 on a consolidated basis and for the subsidiary, as defined. Regulatory capital ratios for June 30, 2020 and December 31, 2019 were calculated in accordance with the Basel III rules.
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Subsequent Events |
6 Months Ended |
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Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividend On July 16, 2020, the Board of Directors declared a quarterly cash dividend of $0.10 per share, to be paid on its common stock on August 21, 2020, to shareholders of record as of the close of business on August 7, 2020. COVID-19 The COVID-19 pandemic is having, and will likely continue to have, significant effects on global markets, supply chains, businesses and communities. COVID-19 is likely to impact the Company’s future financial condition and results of operations, including, but not limited to, additional credit loss reserves, additional collateral and/or modifications to debt obligations, liquidity, limited dividend payouts or potential shortages of personnel. Management continues to take appropriate actions to mitigate the negative impact the virus has on the Company, including restricting employee travel, directing employees to work remotely, cancelling in-person meetings and implementing our business continuity plans and protocols to the extent necessary. However, the full impact of COVID-19 is unknown and cannot be reasonably estimated as these events are still developing.
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Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Presentation | Presentation Colony Bankcorp, Inc. (the “Company”) is a bank holding company located in Fitzgerald, Georgia. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Colony Bank, Fitzgerald, Georgia (the “Bank”). The “Company” or “our,” as used herein, includes Colony Bank. In July 2019, a new subsidiary of the Company was incorporated under the name Colony Risk Management, Inc. Colony Risk Management, Inc. is a subsidiary of the Company and is located in Las Vegas, Nevada. It is a captive insurance subsidiary which insures various liability and property damage policies for the Company and its related subsidiaries. Colony Risk Management is regulated by the State of Nevada Division of Insurance. All adjustments consisting of normal recurring accruals which are, in the opinion of management, necessary for fair presentation of the interim consolidated financial statements, have been included and fairly and accurately present the financial position, results of operations and cash flows of the Company. All significant intercompany accounts have been eliminated in consolidation. The accounting and reporting policies of the Company conform to generally accepted accounting principles and practices utilized in the commercial banking industry for interim financial information and Regulation S-X. Accordingly, the accompanying unaudited interim consolidated financial statements do not include all of the information or notes required for complete financial statements. The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the results which may be expected for the year ending December 31, 2020. These statements should be read in conjunction with the consolidated financial statements and notes thereto in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 (“2019 10-K”).
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Nature of Operations | Nature of Operations The Bank provides a full range of retail, commercial and mortgage banking services for consumers and small- to medium-size businesses located primarily in central, south and coastal Georgia. The Bank is headquartered in Fitzgerald, Georgia with banking and mortgage offices in Albany, Ashburn, Athens, Broxton, Centerville, Columbus, Cordele, Douglas, Eastman, Fitzgerald, LaGrange, Leesburg, Macon, Moultrie, Quitman, Rochelle, Savannah, Soperton, Sylvester, Statesboro, Thomaston, Tifton, Valdosta and Warner Robins. Lending and investing activities are funded primarily by deposits gathered through its retail banking office network.
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Use of Estimates | Use of Estimates In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the balance sheet date and revenues and expenses for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans and fair value of assets acquired and liabilities assumed in a business combination, including goodwill impairment.
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Reclassifications | Reclassifications In certain instances, amounts reported in prior years’ consolidated financial statements have been reclassified to conform to statement presentations selected for 2020. Such reclassifications have not materially affected previously reported stockholders’ equity or net income.
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Concentrations of Credit Risk | Concentrations of Credit Risk Concentrations of credit risk can exist in relation to individual borrowers or groups of borrowers, certain types of collateral, certain types of industries, or certain geographic regions. The Company has a concentration in real estate loans as well as a geographic concentration that could pose an adverse credit risk. At June 30, 2020, approximately 86% of the Company’s loan portfolio was concentrated in loans secured by real estate. A substantial portion of borrowers’ ability to honor their contractual obligations is dependent upon the viability of the real estate economic sector. Management continues to monitor these concentrations and has considered these concentrations in its allowance for loan loss analysis. The success of the Company is dependent, to a certain extent, upon the economic conditions in the geographic markets it serves. Adverse changes in the economic conditions in these geographic markets would likely have a material adverse effect on the Company’s results of operations and financial condition. The operating results of the Company depend primarily on its net interest income. Accordingly, operations are subject to risks and uncertainties surrounding the exposure to changes in the interest rate environment. At times, the Company may have cash and cash equivalents at financial institutions in excess of federal deposit insurance limits. The Company places its cash and cash equivalents with high credit quality financial institutions whose credit ratings are monitored by management to minimize credit risk.
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Changes in Accounting Principles and effects of New Accounting Pronouncements | Changes in Accounting Principles and Effects of New Accounting Pronouncements ASU 2016-13, Financial Instruments – Credit Losses (Topic 326). This ASU sets forth a “current expected credit loss” (CECL) model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supported forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. On October 16, 2019, FASB voted to extend the delay of the effective date of this ASU for smaller reporting companies, such as the Company, until fiscal years beginning after December 15, 2022. The Company is currently assessing the impact of the adoption of this ASU on its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This update removes several exceptions related to intraperiod tax allocation when there is a loss from continuing operations and income from other items, foreign subsidiaries becoming equity method investments and vice versa, and calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The guidance also amends requirements related to franchise tax that is partially based on income, a step up in the tax basis of goodwill, allocation of consolidated tax expense to a legal entity not subject to tax in its separate financial statements, the effects of enacted changes in tax laws and other minor codification improvements regarding employee stock ownership plans and investments in qualified affordable housing projects. For public entities, this guidance is effective for fiscal years beginning after December 15, 2020. The Company does not expect the new guidance to have a material impact on the consolidated financial statements. In January 2020, the FASB issued ASU No. 2020-01, "Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)—Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the Emerging Issues Task Force)". This update clarifies whether an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative and how to account for certain forward contracts and purchased options to purchase securities. For public entities, this guidance is effective for fiscal years beginning after December 15, 2020. The Company does not expect the new guidance to have a material impact on the consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04 "Reference Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU 2020-04"). ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of ) reference rate reform on financial reporting. The amendments are effective for the Company as of March 12, 2020 through December 31, 2022. The Company does not believe this standard will have a material impact on its consolidated financial statements. Operating, Accounting and Reporting Considerations Related to COVID-19 The COVID-19 pandemic has negatively impacted the global economy, including the Company’s primary metropolitan markets. In response to this crisis, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was passed by Congress and signed into law on March 27, 2020. The CARES Act provides an estimated $2.2 trillion to fight the COVID-19 pandemic and stimulate the economy by supporting individuals and businesses through loans, grants, tax changes, and other types of relief. Some of the provisions applicable to the Company include, but are not limited to: •Paycheck Protection Program - The CARES Act established the Paycheck Protection Program “PPP”), an expansion of the Small Business Administration’s 7(a) loan program and the Economic Injury Disaster Loan Program (“EIDL”), administered directly by the SBA. Also in response to the COVID-19 pandemic, the Board of Governors of the Federal Reserve System (“FRB”), the Federal Deposit Insurance Corporation (“FDIC”), the National Credit Union Administration (“NCUA”), the Office of the Comptroller of the Currency (“OCC”), and the Consumer Financial Protection Bureau (“CFPB”), in consultation with the state financial regulators (collectively, the “agencies”) issued a joint interagency statement (issued March 22, 2020; revised statement issued April 7, 2020). Some of the provisions applicable to the Company include, but are not limited to: •Accounting for Loan Modifications - Loan modifications that do not meet the conditions of the CARES Act may still qualify as a modification that does not need to be accounted for as a TDR. The agencies confirmed with FASB staff that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not TDRs. This includes short-term (e.g., three months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or insignificant delays in payment, as long as such modifications are (1) related to COVID-19; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (a) 60 days after the date of termination of the national emergency declaration or (b) December 31, 2020. •Past Due Reporting - With regard to loans not otherwise reportable as past due, financial institutions are not expected to designate loans with deferrals granted due to COVID-19 as past due because of the deferral. A loan’s payment date is governed by the due date stipulated in the legal agreement. If a financial institution agrees to a payment deferral, these loans would not be considered past due reporting during the period of the deferral. •Nonaccrual Status and Charge-offs - During short-term COVID-19 modifications, these loans generally should not be reported as nonaccrual or as classified. As such, beginning in late March 2020, the Company provided relief programs consisting primarily of 90-day payment deferral relief of principal and interest to borrowers negatively impacted by COVID-19 and has accounted for these loan modifications in accordance with ASC 310-40. In addition, the Company also provided principal only payment deferral relief to borrowers of which interest income has been recognized during the deferment period on these interest-only loans.
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Business Acquisitions (Tables) |
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed |
(1) Subsequent adjustments were done within the one year period allowed after the acquisition. The Company continues its evaluation of the facts and circumstances available as of May 1, 2019, to assign fair values to assets acquired and liabilities assumed, which could result in further adjustments to the fair values presented below.
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Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period | The table below summarizes the total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and fair value of the loans as of the acquisition date for purchased credit impaired loans. Contractually required principal and interest payments have been adjusted for estimated prepayments.
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Schedule of Business Acquisitions by Acquisition, Acquired Loan Data | The following table presents the acquired loan data for the LBC acquisition.
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Investment Securities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities | The amortized cost and estimated fair value of securities available for sale along with gross unrealized gains and losses are summarized as follows:
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Investments Classified by Contractual Maturity Date | This is often the case with mortgage-backed securities, which are disclosed separately in the table below.
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Schedule of Unrealized Loss on Investments | Information pertaining to securities with gross unrealized losses at June 30, 2020 and December 31, 2019 aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:
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Loans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | The following table presents the composition of loans segregated by legacy and purchased loans and by class of loans, as of June 30, 2020 and December 31, 2019. Purchased loans are defined as loans that were acquired in bank acquisitions.
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Financing Receivable Credit Quality Indicators | The following table presents the loan portfolio, excluding purchased loans, by credit quality indicator (risk grade) as of June 30, 2020 and December 31, 2019. Those loans with a risk grade of 1, 2, 3 or 4 have been combined in the pass column for presentation purposes.
The following table presents the purchased loan portfolio by credit quality indicator (risk grade) as of June 30, 2020 and December 31, 2019. Those loans with a risk grade of 1, 2, 3 or 4 have been combined in the pass column for presentation purposes. For the period ending June 30, 2020, the Company did not have any loans classified as “doubtful” or a “loss”.
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Financing Receivable, Past Due | The following table presents the aging of the amortized cost basis in legacy loans by aging category and accrual status as of June 30, 2020 and December 31, 2019:
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Impaired Financing Receivables | The following table details impaired loan data, including purchased credit impaired loans, as of June 30, 2020.
The following table details impaired loan data as of December 31, 2019.
Interest income recorded on impaired loans during the three months ended June 30, 2020 and 2019 were $104,000 and $274,000, respectively and during the six months ended June 30, 2020 and 2019 were $154,000 and $477,000, respectively. Troubled Debt Restructings
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Allowance for Loan Losses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivable, Allowance for Credit Loss | The following tables detail activity in the allowance for loan losses, segregated by class of loan, for the three and six months periods ended June 30, 2020 and June 30, 2019. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other loan categories and periodically may result in reallocation within the provision categories.
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Leases (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Classification of Operating Lease Right-of-use Assets and Lease Liabilities | The following table represents the consolidated balance sheet classification of the Company’s ROU assets and liabilities. The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months or less), or equipment leases (deemed immaterial) on the consolidated balance sheet.
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Lessee, Operating Lease, Liability, Maturity | The following table represents the future maturities of the operating lease liabilities and other lease information as of June 30, 2020.
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Borrowings (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | The following table presents information regarding the Company’s outstanding borrowings at June 30, 2020 and December 31, 2019:
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Schedule of Maturities of Long-term Debt | The aggregate stated maturities of other borrowed money at June 30, 2020 are as follows:
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Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table presents earnings per share for the three and six months ended June 30, 2020 and 2019.
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Commitments and Contingencies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Financial Instrument Outstanding | At June 30, 2020 and December 31, 2019 the following financial instruments were outstanding whose contract amounts represent credit risk:
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Fair Value of Financial Instruments and Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping | The carrying amount, estimated fair values, and placement in the fair value hierarchy of the Company’s financial instruments as of June 30, 2020 and December 31, 2019 are as follows:
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Fair Value Measurements, Recurring and Nonrecurring | The following table presents the recorded amount of the Company’s assets measured at fair value on a recurring and nonrecurring basis as of June 30, 2020 and December 31, 2019, aggregated by the level in the fair value hierarchy within which those measurements fall. The table below includes only impaired loans with a specific reserve and only other real estate properties with a valuation allowance at June 30, 2020 and December 31, 2019. Those impaired loans and other real estate properties are shown net of the related specific reserves and valuation allowances.
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Fair Value Measurement Inputs and Valuation Techniques | The following table presents quantitative information about the significant unobservable inputs used in the fair value measurements for assets in level 3 of the fair value hierarchy measured on a nonrecurring basis at June 30, 2020 and December 31, 2019. This table is comprised primarily of collateral dependent impaired loans and other real estate:
The following table presents quantitative information about recurring level 3 fair value measurements as of June 30, 2020 and December 31, 2019.
* The Company relies on a third-party pricing service to value its securities. The details of the unobservable inputs and other adjustments used by the third-party pricing service were not readily available to the Company.
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The table below presents a reconciliation and statement of income classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (level 3) for the six months ended June 30, 2020 and 2019.
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Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | The following tables present information reported internally for performance assessment for the three and six months ended June 30, 2020 and 2019:
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Regulatory Capital Matters (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Banking And Thrift Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following table summarizes regulatory capital information as of June 30, 2020 and December 31, 2019 on a consolidated basis and for the subsidiary, as defined. Regulatory capital ratios for June 30, 2020 and December 31, 2019 were calculated in accordance with the Basel III rules.
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Summary of Significant Accounting Policies (Details) |
6 Months Ended |
---|---|
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Percentage of Loan Portfolio Concentrated in Loans Secured by Real Estate | 86.00% |
Business Acquisitions - Contractually Required Principal and Interest Cash Payments (Details) - LBC Bancshares, Inc $ in Thousands |
May 01, 2019
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Contractually required principal and interest | $ 695 |
Non-accretable difference | (519) |
Cash Flows expected to be collected | 176 |
Accretable yield | 0 |
Total purchased credit-impaired loans acquired | $ 176 |
Business Acquisitions - Loan Data for the LBC Acquisition (Details) - LBC Bancshares, Inc $ in Thousands |
May 01, 2019
USD ($)
|
---|---|
Acquired receivables subject to ASC 310-30 | |
Fair Value of Acquired Loans at Acquisition Date | $ 176 |
Gross Contractual Amounts Receivable at Acquisition Date | 695 |
Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected | 519 |
Acquired receivables not subject to ASC 310-30 | |
Fair Value of Acquired Loans at Acquisition Date | 130,392 |
Gross Contractual Amounts Receivable at Acquisition Date | 132,381 |
Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected | $ 0 |
Investment Securities - Amortized Cost and Fair Value of Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Amortized Cost | ||
Due in one year or less | $ 894 | |
Due after one year through five years | 3,956 | |
Due after five years through ten years | 4,346 | |
Due after ten years | 23,344 | |
Debt Securities With Single Maturity Date, Amortized Cost | 32,540 | |
Mortgage-backed securities | 332,208 | |
Amortized cost | 364,748 | $ 346,874 |
Fair Value | ||
Due In One Year or Less | 897 | |
Due After One Year Through Five Years | 3,989 | |
Due After Five Years Through Ten Years | 4,421 | |
Due After Ten Years | 23,644 | |
Debt Securities With Single Maturity Date, Fair Value | 32,951 | |
Mortgage-Backed Securities | 340,659 | |
Fair Value | $ 373,610 | $ 347,332 |
Investment Securities - (Details Textual) |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2019
USD ($)
|
Dec. 31, 2019
USD ($)
|
|
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sale of investment securities available for sale | $ 15,314,000 | $ 56,821,000 | |
Gross realized gain on sale | 355,000 | 117,000 | |
Gross realized loss on sale | 62,000 | 52,000 | |
Proceeds from sale of investment securities held to maturity | 0 | $ 1,766,000 | |
Investment securities pledged as collateral | $ 109,300,000 | $ 122,300,000 | |
Number of securities that have unrealized losses | 23 | ||
Securities deemed to be other than temporary | $ 0 |
Investment Securities - Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Gross Unrealized Losses | ||
Less Than 12 Months | $ (168) | $ (331) |
12 Months or Greater | (518) | (1,927) |
Total | (686) | (2,258) |
Fair Value | ||
Less Than 12 Months | 25,102 | 64,117 |
12 Months or Greater | 5,748 | 119,894 |
Fair Value | 30,850 | 184,011 |
State, county & municipal securities | ||
Gross Unrealized Losses | ||
Less Than 12 Months | (52) | (54) |
12 Months or Greater | 0 | 0 |
Total | (52) | (54) |
Fair Value | ||
Less Than 12 Months | 7,840 | 3,257 |
12 Months or Greater | 0 | 0 |
Fair Value | 7,840 | 3,257 |
Corporate debt securities | ||
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | |
12 Months or Greater | (16) | |
Total | (16) | |
Fair Value | ||
Less Than 12 Months | 0 | |
12 Months or Greater | 784 | |
Fair Value | 784 | |
Mortgage-backed securities | ||
Gross Unrealized Losses | ||
Less Than 12 Months | (116) | (277) |
12 Months or Greater | (518) | (1,911) |
Total | (634) | (2,188) |
Fair Value | ||
Less Than 12 Months | 17,262 | 60,860 |
12 Months or Greater | 5,748 | 119,110 |
Fair Value | $ 23,010 | $ 179,970 |
Loans - (Details Textual) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2020
USD ($)
numberOfLoans
|
Jun. 30, 2019
USD ($)
numberOfLoans
|
Jun. 30, 2020
USD ($)
numberOfLoans
|
Jun. 30, 2019
USD ($)
numberOfLoans
|
Dec. 31, 2019
USD ($)
|
|
Loans and Leases Receivable Disclosure [Line Items] | |||||
Loan originations | $ 1,113,977,000 | $ 1,113,977,000 | $ 968,814,000 | ||
Outstanding balance of high risk loans, minimum | 250,000 | 250,000 | 250,000 | ||
Interest income on impaired loans | 104,000 | $ 274,000 | 154,000 | $ 477,000 | |
Unfunded commitments to lend | $ 0 | $ 0 | |||
Loan contracts restructured | 0 | 0 | 0 | 0 | |
Number of loans that subsequently defaulted | numberOfLoans | 0 | 0 | 0 | 0 | |
Loans | $ 1,113,977,000 | $ 1,113,977,000 | 968,814,000 | ||
Legacy Loans | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Loan originations | 988,714,000 | 988,714,000 | 847,100,000 | ||
Loans | 988,714,000 | 988,714,000 | $ 847,100,000 | ||
Loans Receivable | Legacy Loans | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Loan originations | 137,800,000 | 137,800,000 | |||
Loans | 137,800,000 | 137,800,000 | |||
Loan Modifications, CARES Act | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Loan originations | 113,200,000 | 113,200,000 | |||
Loans | $ 113,200,000 | $ 113,200,000 |
Allowance for Loan Losses (Details Textual) - USD ($) |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Receivables [Abstract] | ||
Outstanding balance of high risk loans, minimum | $ 250,000 | $ 250,000 |
Leases - Balance Sheet Classification of Operating Lease Right-of-use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 633 | $ 572 |
Operating lease liabilities | $ 633 | $ 547 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities |
Leases (Details Textual) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Leases [Abstract] | ||||
Operating lease cost | $ 64 | $ 31 | $ 116 | $ 61 |
Weighted average remaining lease term | 4 years 7 months 2 days | 4 years 7 months 2 days | ||
Weighted average discount rate | 1.78% | 1.78% |
Leases - Future Maturities of Operating Lease Liabilities and Other Lease Information (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2020 |
Dec. 31, 2019 |
|
Lease Liability | ||
2021 | $ 222 | |
2022 | 152 | |
2023 | 101 | |
2024 | 45 | |
2025 | 45 | |
After June 30, 2025 | 104 | |
Total lease payments | 669 | |
Less: interest | (36) | |
Present value of lease liabilities | 633 | $ 547 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases (cash payments) | 116 | |
Operating cash flows from operating leases (lease liability reduction) | 110 | |
Operating lease right-of-use assets obtained in exchange for leases entered into during the period | $ 196 |
Borrowings - Summary of Other Borrowed Money (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Debt Disclosure [Abstract] | ||
Advances from Federal Home Loan Banks | $ 36,500 | $ 47,000 |
Paycheck Protection Program (PPP) Liquidity Facility | 134,500 | 0 |
Other borrowings | 38,292 | 38,792 |
Total borrowings | $ 209,292 | $ 85,792 |
Borrowings - Aggregate Stated Maturities (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Paycheck Protection Program (PPP) Liquidity Facility | $ 134,500 | $ 0 |
Long-term Debt | 209,292 | |
Paycheck Protection Program, CARES Act | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Paycheck Protection Program (PPP) Liquidity Facility | 134,500 | |
Other Borrowings | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2021 | 5,313 | |
2022 | 14,000 | |
2023 | 3,000 | |
2024 | 8,750 | |
2025 and After | $ 43,729 |
Earnings Per Share - Summary of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Numerator | ||||
Net income available to common stockholders | $ 2,214 | $ 2,101 | $ 3,817 | $ 4,936 |
Weighted average number of common shares | ||||
Outstanding for basic earnings per common share (in shares) | 9,498,783 | 9,089,461 | 9,498,783 | 8,764,909 |
Weighted-average number of shares outstanding for diluted earnings per common share (in shares) | 9,498,783 | 9,089,461 | 9,498,783 | 8,764,909 |
Earnings per share - basic (in dollars per share) | $ 0.23 | $ 0.23 | $ 0.40 | $ 0.56 |
Earnings per share - diluted (in dollars per share) | $ 0.23 | $ 0.23 | $ 0.40 | $ 0.56 |
Commitments and Contingencies - Financial Instruments Outstanding Whose Contract Amount Represents Credit Risk (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Other Commitments [Line Items] | ||
Letters of credit | $ 2,491 | $ 1,576 |
Loan Origination Commitments | ||
Other Commitments [Line Items] | ||
Loan commitments | $ 145,209 | $ 102,890 |
Commitments and Contingencies (Details Textual) |
6 Months Ended |
---|---|
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Letter of credit, expiration date period | 1 year |
Fair Value of Financial Instruments and Fair Value Measurements (Details Textual) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Fair Value Disclosures [Abstract] | ||||
Fair value input, discount amount | 10.00% | 10.00% | ||
Transfers out of level 3 | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value of Financial Instruments and Fair Value Measurements - Fair Value Measurement Using Significant Unobservable Inputs (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Transfers out of Level 3 | $ 0 | $ 0 | $ 0 | $ 0 |
Available-for-sale Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning | 2,022,000 | 4,277,000 | ||
Transfers out of Level 3 | 0 | 0 | ||
Sales | 0 | 0 | ||
Paydowns | (16,000) | (883,000) | ||
Realized Loss on Sale of Security | 0 | 0 | ||
Unrealized gains included in Other Comprehensive Income | 0 | 40,000 | ||
Balance, Ending | $ 2,006,000 | $ 3,434,000 | $ 2,006,000 | $ 3,434,000 |
Fair Value of Financial Instruments and Fair Value Measurements - Quantitative Information About Recurring Level 3 Fair Value Measurement (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Investment securities available for sale, at fair value | $ 373,610 | $ 347,332 |
Recurring Securities Available for Sale | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Investment securities available for sale, at fair value | 373,610 | 347,332 |
Level 3 | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Investment securities available for sale, at fair value | 2,006 | 2,022 |
Level 3 | Recurring Securities Available for Sale | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Investment securities available for sale, at fair value | $ 2,006 | $ 2,022 |
Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
Segment Reporting Information [Line Items] | |||||
Net Interest Income | $ 13,541 | $ 11,825 | $ 26,245 | $ 22,182 | |
Provision for loan losses | 2,200 | 179 | 4,156 | 310 | |
Noninterest Income | 4,843 | 4,000 | 9,404 | 6,334 | |
Noninterest Expenses | 13,375 | 13,014 | 26,753 | 22,040 | |
Income taxes | 595 | 531 | 923 | 1,230 | |
Segment Profit (Loss) | 2,214 | 2,101 | 3,817 | 4,936 | |
Segment Assets | 1,777,568 | 1,506,972 | 1,777,568 | 1,506,972 | $ 1,515,313 |
Bank | |||||
Segment Reporting Information [Line Items] | |||||
Net Interest Income | 12,730 | 11,806 | 25,386 | 22,163 | |
Provision for loan losses | 2,200 | 179 | 4,156 | 310 | |
Noninterest Income | 2,901 | 3,148 | 5,950 | 5,482 | |
Noninterest Expenses | 11,045 | 12,168 | 22,712 | 21,194 | |
Income taxes | 320 | 526 | 688 | 1,225 | |
Segment Profit (Loss) | 2,066 | 2,081 | 3,780 | 4,916 | |
Segment Assets | 1,622,608 | 1,502,974 | 1,622,608 | 1,502,974 | |
Mortgage Banking | |||||
Segment Reporting Information [Line Items] | |||||
Net Interest Income | 82 | 19 | 116 | 19 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Noninterest Income | 1,821 | 852 | 3,074 | 852 | |
Noninterest Expenses | 1,697 | 846 | 2,892 | 846 | |
Income taxes | 43 | 5 | 54 | 5 | |
Segment Profit (Loss) | 163 | 20 | 244 | 20 | |
Segment Assets | 17,578 | 3,998 | 17,578 | 3,998 | |
Small Business Specialty Lending Division | |||||
Segment Reporting Information [Line Items] | |||||
Net Interest Income | 729 | 0 | 743 | 0 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Noninterest Income | 121 | 0 | 380 | 0 | |
Noninterest Expenses | 633 | 0 | 1,149 | 0 | |
Income taxes | 232 | 0 | 181 | 0 | |
Segment Profit (Loss) | (15) | 0 | (207) | 0 | |
Segment Assets | $ 137,382 | $ 0 | $ 137,382 | $ 0 |
Regulatory Capital Matters (Details Textual) |
Jan. 01, 2016 |
---|---|
Banking And Thrift Disclosure [Abstract] | |
Percentage of risk-weighted assets | 0.625% |
Increase in percentage of risk-weighted assets | 0.625% |
Final level of percentage of risk-weighted assets | 2.50% |
Subsequent Events (Details) |
Apr. 22, 2020
$ / shares
|
---|---|
Subsequent Events [Abstract] | |
Dividends declared (in dollars per share) | $ 0.10 |
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