QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Title of each class
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Trading Symbol
|
Name of each exchange on which registered
|
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Large accelerated filer
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☐ |
Accelerated filer ☐
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||
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☒ |
Smaller reporting company
|
||
Emerging growth company
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Page
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Item 1.
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1
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1
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2
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3
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4
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6
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7
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Item 2.
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29 |
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Item 3.
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42 | |
Item 4.
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42 | |
PART II - OTHER INFORMATION
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Item 1.
|
43 | |
Item 1A.
|
43 | |
Item 2.
|
43 | |
Item 3.
|
43 | |
Item 4.
|
43 | |
Item 5.
|
43 | |
Item 6.
|
44 | |
44 |
2020 Annual Report on Form 10-K
|
Annual Report on Form 10-K for the year ended December 31, 2020
|
ALLL
|
Allowance for Loan and Lease Losses
|
ASC
|
Accounting Standards Codification
|
ASU
|
Accounting Standards Update
|
Bank
|
The Old Point National Bank of Phoebus
|
The CARES Act
|
The Coronavirus Aid, Relief, and Economic Security Act
|
CET1
|
Common Equity Tier 1
|
Citizens
|
Citizens National Bank
|
Company
|
Old Point Financial Corporation and its subsidiaries
|
CBB
|
Community Bankers Bank
|
CBLR
|
Community Bank Leverage Ratio
|
EGRRCPA
|
Economic Growth, Regulatory Relief, and Consumer Protection Act
|
EPS
|
earnings per share
|
ESPP
|
Employee Stock Purchase Plan
|
Exchange Act
|
Securities Exchange Act of 1934, as amended
|
FASB
|
Financial Accounting Standards Board
|
FDIC
|
Federal Deposit Insurance Corporation
|
FHLB
|
Federal Home Loan Bank
|
Federal Reserve
|
Board of Governors of the Federal Reserve System
|
FRB
|
Federal Reserve Bank
|
GAAP
|
Generally Accepted Accounting Principles
|
Incentive Stock Plan
|
Old Point Financial Corporation 2016 Incentive Stock Plan
|
NIM
|
Net Interest Margin
|
Notes
|
The Company’s 3.50% fixed-to-floating rate subordinated notes due 2031
|
OAEM
|
Other Assets Especially Mentioned
|
OREO
|
Other Real Estate Owned
|
PPP
|
Paycheck Protection Program
|
PPPLF
|
Paycheck Protection Program Liquidity Facility
|
SEC
|
Securities and Exchange Commission
|
SBA
|
Small Business Administration
|
SOFR
|
Secured overnight financing rate
|
TDR
|
Troubled Debt Restructuring
|
Trust
|
Old Point Trust & Financial Services N.A.
|
September 30,
|
December 31,
|
|||||||
(dollars in thousands, except share data)
|
2021
|
2020
|
||||||
(unaudited)
|
||||||||
Assets
|
||||||||
Cash and due from banks
|
$
|
|
$
|
|
||||
Interest-bearing due from banks
|
|
|
||||||
Federal funds sold
|
|
|
||||||
Cash and cash equivalents
|
|
|
||||||
Securities available-for-sale, at fair value
|
|
|
||||||
Restricted securities, at cost
|
|
|
||||||
Loans held for sale
|
|
|
||||||
Loans, net
|
|
|
||||||
Premises and equipment, net
|
|
|
||||||
Premises and equipment, held for sale
|
|
|
||||||
Bank-owned life insurance
|
|
|
||||||
Goodwill
|
|
|
||||||
Core deposit intangible, net
|
|
|
||||||
Other assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
Liabilities & Stockholders' Equity
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing deposits
|
$
|
|
$
|
|
||||
Savings deposits
|
|
|
||||||
Time deposits
|
|
|
||||||
Total deposits
|
|
|
||||||
Overnight repurchase agreements
|
|
|
||||||
Federal Reserve Bank borrowings
|
|
|
||||||
Long term borrowings
|
|
|
||||||
Accrued expenses and other liabilities
|
|
|
||||||
Total liabilities
|
|
|
||||||
Stockholders' equity:
|
||||||||
Common stock, $
|
|
|
||||||
Additional paid-in capital
|
|
|
||||||
Retained earnings
|
|
|
||||||
Accumulated other comprehensive income, net
|
|
|
||||||
Total stockholders' equity
|
|
|
||||||
Total liabilities and stockholders' equity
|
$
|
|
$
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
(unaudited, dollars in thousands, except per share data)
|
2021
|
2020
|
2021
|
2020
|
||||||||||||
Interest and Dividend Income:
|
||||||||||||||||
Loans, including fees
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Due from banks
|
|
|
|
|
||||||||||||
Federal funds sold
|
|
|
|
|
||||||||||||
Securities:
|
||||||||||||||||
Taxable
|
|
|
|
|
||||||||||||
Tax-exempt
|
|
|
|
|
||||||||||||
Dividends and interest on all other securities
|
|
|
|
|
||||||||||||
Total interest and dividend income
|
|
|
|
|
||||||||||||
Interest Expense:
|
||||||||||||||||
Checking and savings deposits
|
|
|
|
|
||||||||||||
Time deposits
|
|
|
|
|
||||||||||||
Federal funds purchased, securities sold under agreements to repurchase and other borrowings
|
|
|
|
|
||||||||||||
Long term borrowings |
||||||||||||||||
Federal Home Loan Bank advances
|
|
|
|
|
||||||||||||
Total interest expense
|
|
|
|
|
||||||||||||
Net interest income
|
|
|
|
|
||||||||||||
Provision for loan losses
|
|
|
|
|
||||||||||||
Net interest income after provision for loan losses
|
|
|
|
|
||||||||||||
Noninterest Income:
|
||||||||||||||||
Fiduciary and asset management fees
|
|
|
|
|
||||||||||||
Service charges on deposit accounts
|
|
|
|
|
||||||||||||
Other service charges, commissions and fees
|
|
|
|
|
||||||||||||
Bank-owned life insurance income
|
|
|
|
|
||||||||||||
Mortgage banking income
|
|
|
|
|
||||||||||||
Gain on sale of available-for-sale securities, net
|
|
|
|
|
||||||||||||
Gain on sale of fixed assets
|
|
|
|
|
||||||||||||
Other operating income
|
|
|
|
|
||||||||||||
Total noninterest income
|
|
|
|
|
||||||||||||
Noninterest Expense:
|
||||||||||||||||
Salaries and employee benefits
|
|
|
|
|
||||||||||||
Occupancy and equipment
|
|
|
|
|
||||||||||||
Data processing
|
|
|
|
|
||||||||||||
Customer development
|
|
|
|
|
||||||||||||
Professional services
|
|
|
|
|
||||||||||||
Employee professional development
|
|
|
|
|
||||||||||||
Other taxes
|
|
|
|
|
||||||||||||
ATM and other losses
|
|
|
|
|
||||||||||||
(Gain) on other real estate owned |
( |
) | ( |
) | ||||||||||||
Other operating expenses
|
|
|
|
|
||||||||||||
Total noninterest expense
|
|
|
|
|
||||||||||||
Income before income taxes
|
|
|
|
|
||||||||||||
Income tax expense
|
|
|
|
|
||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Basic Earnings per Share:
|
||||||||||||||||
Weighted average shares outstanding
|
|
|
|
|
||||||||||||
Net income per share of common stock
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Diluted Earnings per Share:
|
||||||||||||||||
Weighted average shares outstanding
|
|
|
|
|
||||||||||||
Net income per share of common stock
|
$
|
|
$
|
|
$
|
|
$
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
(unaudited, dollars in thousands)
|
2021
|
2020
|
2021
|
2020
|
||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Other comprehensive income (loss), net of tax
|
||||||||||||||||
Net unrealized gain (loss) on available-for-sale securities
|
(
|
)
|
|
(
|
)
|
|
||||||||||
Reclassification for gain included in net income
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Other comprehensive income (loss), net of tax
|
(
|
)
|
|
(
|
)
|
|
||||||||||
Comprehensive income
|
$
|
|
$
|
|
$
|
|
$
|
|
(unaudited, dollars in thousands, except share and per share data) |
Shares of
Common
Stock
|
Common
Stock
|
Additional
Paid-in
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Total
|
||||||||||||||||||
THREE MONTHS ENDED SEPTEMBER 30, 2021
|
||||||||||||||||||||||||
Balance at June 30, 2021
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||
Net income
|
-
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive income, net of tax
|
-
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Employee Stock Purchase Plan share issuance
|
|
|
|
|
|
|
||||||||||||||||||
Restricted stock vested
|
|
|
|
|
|
|
||||||||||||||||||
Stock-based compensation expense
|
-
|
|
|
|
|
|
||||||||||||||||||
Cash dividends ($
|
-
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Balance at end of period
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||
THREE MONTHS ENDED SEPTEMBER 30, 2020
|
||||||||||||||||||||||||
Balance at June 30, 2020
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||
Net income
|
-
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive loss, net of tax
|
-
|
|
|
|
|
|
||||||||||||||||||
Employee Stock Purchase Plan share issuance
|
|
|
|
|
|
|
||||||||||||||||||
Restricted stock vested
|
|
|
|
|
|
|
||||||||||||||||||
Stock-based compensation expense
|
-
|
|
|
|
|
|
||||||||||||||||||
Cash dividends ($
|
-
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Balance at end of period
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(unaudited, dollars in thousands, except share and per share data) |
Shares of
Common
Stock
|
Common
Stock
|
Additional
Paid-in
Capital
|
Retained Earnings |
Accumulated
Other
Comprehensive
Income (Loss)
|
Total |
||||||||||||||||||
NINE MONTHS ENDED SEPTEMBER 30, 2021
|
||||||||||||||||||||||||
Balance at December 31, 2020
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||
Net income
|
-
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive loss, net of tax
|
-
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Employee Stock Purchase Plan share issuance
|
|
|
|
|
|
|
||||||||||||||||||
Restricted stock vested
|
|
|
(
|
)
|
|
|
|
|||||||||||||||||
Stock-based compensation expense
|
-
|
|
|
|
|
|
||||||||||||||||||
Cash dividends ($
|
-
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Balance at end of period
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||
NINE MONTHS ENDED SEPTEMBER 30, 2020
|
||||||||||||||||||||||||
Balance at December 31, 2019
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||
Net income
|
-
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive income, net of tax
|
-
|
|
|
|
|
|
||||||||||||||||||
Employee Stock Purchase Plan share issuance
|
|
|
|
|
|
|
||||||||||||||||||
Restricted stock vested
|
|
|
(
|
)
|
|
|
|
|||||||||||||||||
Stock-based compensation expense
|
-
|
|
|
|
|
|
||||||||||||||||||
Cash dividends ($
|
-
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Balance at end of period
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Nine Months Ended September 30,
|
||||||||
(unaudited, dollars in thousands)
|
2021
|
2020
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
|
||||||||
Depreciation and amortization
|
|
|
||||||
Amortization of right of use lease asset
|
|
|
||||||
Accretion related to acquisition, net
|
(
|
)
|
(
|
)
|
||||
Amortization of subordinated debt issuance costs |
||||||||
Provision for loan losses
|
|
|
||||||
Gain on sale of securities, net |
( |
) | ||||||
Net amortization of securities on subordinated issuance costs
|
|
|
||||||
Decrease (increase) in loans held for sale, net
|
|
(
|
)
|
|||||
Net (gain) loss on disposal of premises and equipment |
( |
) | ||||||
Net (gain) loss on write-down/sale of other real estate owned |
( |
) | ||||||
Income from bank owned life insurance
|
(
|
)
|
(
|
)
|
||||
Stock compensation expense
|
|
|
||||||
Deferred tax benefit
|
(
|
)
|
(
|
)
|
||||
(Decrease) in other assets
|
(
|
)
|
(
|
)
|
||||
Increase (decrease) in accrued expenses and other liabilities
|
|
(
|
)
|
|||||
Net cash provided by (used in) operating activities
|
|
(
|
)
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Purchases of available-for-sale securities
|
(
|
)
|
(
|
)
|
||||
Proceeds from redemption (purchase) of restricted securities, net
|
|
(
|
)
|
|||||
Proceeds from maturities and calls of available-for-sale securities
|
|
|
||||||
Proceeds from sales of available-for-sale securities
|
|
|
||||||
Paydowns on available-for-sale securities
|
|
|
||||||
Net increase in loans held for investment
|
(
|
)
|
(
|
)
|
||||
Proceeds from sales of other real estate owned |
||||||||
Purchases of premises and equipment
|
(
|
)
|
(
|
)
|
||||
Proceeds from sale of premises and equipment |
||||||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Increase in noninterest-bearing deposits
|
|
|
||||||
Increase in savings deposits
|
|
|
||||||
Decrease in time deposits
|
(
|
)
|
(
|
)
|
||||
Increase (decrease) in federal funds purchased, repurchase agreements and other borrowings, net
|
(
|
)
|
(
|
)
|
||||
Increase in Federal Home Loan Bank advances
|
|
|
||||||
Repayment of Federal Home Loan Bank advances
|
|
(
|
)
|
|||||
Increase in Federal Reserve Bank borrowings |
||||||||
Repayment of Federal Reserve Bank borrowings
|
(
|
)
|
(
|
)
|
||||
Increase in long term borrowings | ||||||||
Proceeds from ESPP issuance
|
|
|
||||||
Cash dividends paid on common stock
|
(
|
)
|
(
|
)
|
||||
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
|
$
|
|
$
|
|
||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
|
||||||||
Cash payments for:
|
||||||||
Interest
|
$
|
|
$
|
|
||||
SUPPLEMENTAL SCHEDULE OF NONCASH TRANSACTIONS
|
||||||||
Unrealized (loss) gain on securities available-for-sale
|
$
|
(
|
)
|
$
|
|
|||
Loans transferred to other real estate owned
|
$
|
|
$
|
|
||||
Former bank property transferred from fixed assets to held for sale assets
|
$
|
|
$
|
|
||||
Right of use lease asset and liability
|
$
|
|
$
|
|
September 30, 2021
|
||||||||||||||||
(Dollars in thousands)
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
(Losses)
|
Fair
Value
|
||||||||||||
U.S. Treasury securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
Obligations of U.S. Government agencies
|
|
|
(
|
)
|
|
|||||||||||
Obligations of state and political subdivisions
|
|
|
(
|
)
|
|
|||||||||||
Mortgage-backed securities
|
|
|
(
|
)
|
|
|||||||||||
Money market investments
|
|
|
|
|
||||||||||||
Corporate bonds and other securities
|
|
|
(
|
)
|
|
|||||||||||
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
December 31, 2020
|
||||||||||||||||
(Dollars in thousands)
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
(Losses)
|
Fair
Value
|
||||||||||||
U.S. Treasury securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Obligations of U.S. Government agencies
|
|
|
(
|
)
|
|
|||||||||||
Obligations of state and political subdivisions
|
|
|
|
|
||||||||||||
Mortgage-backed securities
|
|
|
(
|
)
|
|
|||||||||||
Money market investments
|
|
|
|
|
||||||||||||
Corporate bonds and other securities
|
|
|
(
|
)
|
|
|||||||||||
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
September 30, 2021
|
||||||||
(Dollars in thousands)
|
Amortized
Cost
|
Fair
Value
|
||||||
Due in one year or less
|
$
|
|
$
|
|
||||
Due after one year through five years
|
|
|
||||||
Due after five through ten years
|
|
|
||||||
Due after ten years
|
|
|
||||||
Other securities, restricted
|
|
|
||||||
$
|
|
$
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
(Dollars in thousands)
|
2021
|
2020
|
2021
|
2020
|
||||||||||||
Securities Available-for-sale
|
||||||||||||||||
Realized gains on sales of securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Realized losses on sales of securities
|
|
|
|
(
|
)
|
|||||||||||
Net realized gain
|
$
|
|
$
|
|
$
|
|
$
|
|
September 30, 2021 |
||||||||||||||||||||||||
Less than 12 months
|
12 months or more
|
Total
|
||||||||||||||||||||||
(Dollars in thousands)
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
||||||||||||||||||
U.S. Treasury securities
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Obligations of U.S. Government agencies
|
|
|
|
|
|
|
||||||||||||||||||
Obligations of state and political subdivisions
|
|
|
|
|
|
|
||||||||||||||||||
Mortgage-backed securities
|
|
|
|
|
|
|
||||||||||||||||||
Corporate bonds and other securities
|
|
|
|
|
|
|
||||||||||||||||||
Total securities available-for-sale
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2020 | ||||||||||||||||||||||||
Less than 12 months
|
12 months or more
|
Total
|
||||||||||||||||||||||
(Dollars in thousands)
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
||||||||||||||||||
Obligations of U.S. Government agencies
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Mortgage-backed securities
|
|
|
|
|
|
|
||||||||||||||||||
Corporate bonds and other securities
|
|
|
|
|
|
|
||||||||||||||||||
Total securities available-for-sale
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(dollars in thousands)
|
September 30, 2021
|
December 31, 2020
|
||||||
Mortgage loans on real estate:
|
||||||||
Residential 1-4 family
|
$
|
|
$
|
|
||||
Commercial - owner occupied
|
|
|
||||||
Commercial - non-owner occupied
|
|
|
||||||
Multifamily
|
|
|
||||||
Construction
|
|
|
||||||
Second mortgages
|
|
|
||||||
Equity lines of credit
|
|
|
||||||
Total mortgage loans on real estate
|
|
|
||||||
Commercial and industrial loans
|
|
|
||||||
Consumer automobile loans
|
|
|
||||||
Other consumer loans
|
|
|
||||||
Other (1)
|
|
|
||||||
Total loans, net of deferred fees
|
|
|
||||||
Less: Allowance for loan losses
|
|
|
||||||
Loans, net of allowance and deferred fees (2)
|
$
|
|
$
|
|
(1)
|
|
(2)
|
|
(dollars in thousands)
|
September 30, 2021
|
December 31, 2020
|
||||||
Outstanding principal balance
|
$
|
|
$
|
|
||||
Carrying amount
|
|
|
(dollars in thousands)
|
September 30, 2021
|
September 30, 2020
|
||||||
Balance at January 1
|
$
|
|
$
|
|
||||
Accretion
|
(
|
)
|
||||||
Balance at end of period
|
$
|
|
$
|
|
•
|
Pass: Loans are of acceptable risk.
|
•
|
Other Assets Especially Mentioned (OAEM): Loans have potential weaknesses that deserve management’s close attention.
|
•
|
Substandard: Loans reflect significant deficiencies due to several adverse trends of a financial, economic or managerial nature.
|
•
|
Doubtful: Loans have all the weaknesses inherent in a substandard loan with added characteristics that make collection or liquidation in
full based on currently existing facts, conditions and values highly questionable or improbable.
|
•
|
Loss: Loans have been identified for charge-off because they are considered uncollectible and of such little value that their
continuance as bankable assets is not warranted.
|
Credit Quality Information
|
||||||||||||||||||||
As of September 30, 2021
|
||||||||||||||||||||
(dollars in thousands)
|
Pass
|
OAEM
|
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
Mortgage loans on real estate:
|
||||||||||||||||||||
Residential 1-4 family
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Commercial - owner occupied
|
|
|
|
|
|
|||||||||||||||
Commercial - non-owner occupied
|
|
|
|
|
|
|||||||||||||||
Multifamily
|
|
|
|
|
|
|||||||||||||||
Construction
|
|
|
|
|
|
|||||||||||||||
Second mortgages
|
|
|
|
|
|
|||||||||||||||
Equity lines of credit
|
|
|
|
|
|
|||||||||||||||
Total mortgage loans on real estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Commercial and industrial loans
|
|
|
|
|
|
|||||||||||||||
Consumer automobile loans
|
|
|
|
|
|
|||||||||||||||
Other consumer loans
|
|
|
|
|
|
|||||||||||||||
Other
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Credit Quality Information
|
||||||||||||||||||||
As of December 31, 2020
|
||||||||||||||||||||
(dollars in thousands)
|
Pass
|
OAEM
|
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
Mortgage loans on real estate:
|
||||||||||||||||||||
Residential 1-4 family
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Commercial - owner occupied
|
|
|
|
|
|
|||||||||||||||
Commercial - non-owner occupied
|
|
|
|
|
|
|||||||||||||||
Multifamily
|
|
|
|
|
|
|||||||||||||||
Construction
|
|
|
|
|
|
|||||||||||||||
Second mortgages
|
|
|
|
|
|
|||||||||||||||
Equity lines of credit
|
|
|
|
|
|
|||||||||||||||
Total mortgage loans on real estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Commercial and industrial loans
|
|
|
|
|
|
|||||||||||||||
Consumer automobile loans
|
|
|
|
|
|
|||||||||||||||
Other consumer loans
|
|
|
|
|
|
|||||||||||||||
Other
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Age Analysis of Past Due Loans as of September 30, 2021
|
||||||||||||||||||||||||||||
(dollars in thousands)
|
30 - 59
Days Past
Due
|
60 - 89
Days
Past Due
|
90 or More
Days Past
Due and
still
Accruing
|
PCI
|
Nonaccrual
(2)
|
Total
Current
Loans (1)
|
Total
Loans |
|||||||||||||||||||||
Mortgage loans on real estate:
|
||||||||||||||||||||||||||||
Residential 1-4 family
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Commercial - owner occupied
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial - non-owner occupied
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Multifamily
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Construction
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Second mortgages
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Equity lines of credit
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total mortgage loans on real estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Consumer automobile loans
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Other consumer loans
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Other
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(1)
|
|
(2)
|
|
Age Analysis of Past Due Loans as of December 31, 2020
|
||||||||||||||||||||||||||||
(dollars in thousands)
|
30 - 59
Days Past
Due
|
60 - 89
Days Past
Due
|
90 or More
Days Past
Due and
still
Accruing
|
PCI
|
Nonaccrual
(2)
|
Total
Current
Loans (1)
|
Total
Loans |
|||||||||||||||||||||
Mortgage loans on real estate:
|
||||||||||||||||||||||||||||
Residential 1-4 family
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Commercial - owner occupied
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial - non-owner occupied
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Multifamily
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Construction
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Second mortgages
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Equity lines of credit
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total mortgage loans on real estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Consumer automobile loans
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Other consumer loans
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Other
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(1)
|
For purposes of this table, Total Current Loans includes loans that are 1 - 29 days past due.
|
(2)
|
For purposes of this table, if a loan is past due and on nonaccrual, it is included in the nonaccural column and not also in its respective past due column.
|
(dollars in thousands)
|
September 30, 2021
|
December 31, 2020
|
||||||
Mortgage loans on real estate:
|
||||||||
Residential 1-4 family
|
$
|
|
$
|
|
||||
Commercial - owner occupied
|
|
|
||||||
Commercial - non-owner occupied
|
|
|
||||||
Total mortgage loans on real estate
|
$ |
|
$ |
|
||||
Consumer loans
|
|
|
|
|
||||
Total
|
$
|
|
$
|
|
Nine Months Ended September 30,
|
||||||||
(dollars in thousand)
|
2021
|
2020
|
||||||
Interest income that would have been recorded under original loan terms
|
$
|
|
$
|
|
||||
Actual interest income recorded for the period
|
|
|
||||||
Reduction in interest income on nonaccrual loans
|
$
|
|
$
|
|
As of September 30, 2021
|
For the Nine Months Ended
September 30, 2021
|
|||||||||||||||||||||||
(Dollars in thousands)
|
Unpaid Principal
Balance
|
Without
Valuation
Allowance
|
With Valuation
Allowance
|
Associated
Allowance
|
Average
Recorded
Investment
|
Interest Income
Recognized
|
||||||||||||||||||
Mortgage loans on real estate:
|
||||||||||||||||||||||||
Residential 1-4 family
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Commercial
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||
Second mortgages
|
|
|
|
|
|
|
||||||||||||||||||
Total mortgage loans on real estate
|
|
|
|
|
|
|
||||||||||||||||||
Commercial and industrial loans
|
|
|
|
|
|
|
||||||||||||||||||
Other consumer loans
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Impaired Loans by Class | ||||||||||||||||||||||||
As of December 31, 2020
|
For the Year Ended
December 31, 2020
|
|||||||||||||||||||||||
(Dollars in thousands)
|
Unpaid Principal
Balance
|
Without
Valuation
Allowance
|
With Valuation
Allowance
|
Associated
Allowance
|
Average
Recorded
Investment
|
Interest Income
Recognized
|
||||||||||||||||||
Mortgage loans on real estate:
|
||||||||||||||||||||||||
Residential 1-4 family
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Commercial
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||
Second mortgages
|
|
|
|
|
|
|
||||||||||||||||||
Total mortgage loans on real estate
|
|
|
|
|
|
|
||||||||||||||||||
Commercial and industrial loans
|
|
|
|
|
|
|
||||||||||||||||||
Other consumer loans
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
•
|
Commercial and industrial: Commercial and industrial loans carry risks associated with the successful operation of a business or
project, in addition to other risks associated with the ownership of a business. The repayment of these loans may be dependent upon the profitability and cash flows of the business. In addition, there is risk associated with the value
of collateral other than real estate which may depreciate over time and cannot be appraised with as much precision.
|
•
|
Real estate-construction: Construction loans carry risks that the project will not be finished according to schedule, the project will
not be finished according to budget and the value of the collateral may at any point in time be less than the principal amount of the loan. Construction loans also bear the risk that the general contractor, who may or may not be the
loan customer, may be unable to finish the construction project as planned because of financial pressure unrelated to the project.
|
•
|
Real estate-mortgage: Residential mortgage loans and equity lines of credit carry risks associated with the continued
credit-worthiness of the borrower and changes in the value of the collateral. Commercial real estate loans carry risks associated with the successful operation of a business if owner occupied. If non-owner occupied, the repayment of
these loans may be dependent upon the profitability and cash flow from rent receipts.
|
•
|
Consumer loans: Consumer loans carry risks associated with the continued credit-worthiness of the borrowers and the value of the
collateral. Consumer loans are more likely than real estate loans to be immediately adversely affected by job loss, divorce, illness or personal bankruptcy.
|
•
|
Other loans: Other loans are loans to mortgage companies, loans for purchasing or carrying securities, and loans to insurance,
investment and finance companies. These loans carry risks associated with the successful operation of a business. In addition, there is risk associated with the value of collateral other than real estate which may depreciate over
time, depend on interest rates or fluctuate in active trading markets.
|
For the Nine Months ended September 30, 2021
|
||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Commercial
and Industrial
|
Real Estate Construction
|
Real Estate -
Mortgage (1)
|
Real Estate -
Commercial
|
Consumer (2)
|
Other
|
Unallocated
|
Total
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Balance, beginning
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Charge-offs
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||
Recoveries
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Provision for loan losses
|
|
|
(
|
)
|
|
|
|
(
|
)
|
|
||||||||||||||||||||||
Ending Balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Collectively evaluated for impairment
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Ending Balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Loans Balances:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Collectively evaluated for impairment
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Ending Balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(1) |
|
(2)
|
|
For the Year ended December 31, 2020
|
||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Commercial
and Industrial
|
Real Estate Construction
|
Real Estate -
Mortgage (1)
|
Real Estate -
Commercial
|
Consumer (2)
|
Other
|
Unallocated
|
Total
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Balance, beginning
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Charge-offs
|
(
|
)
|
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
|
(
|
)
|
||||||||||||||||||
Recoveries
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Provision for loan losses
|
(
|
)
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Ending Balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Collectively evaluated for impairment
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Ending Balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Loans Balances:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Collectively evaluated for impairment
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Ending Balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(1) |
The real estate-mortgage segment includes residential 1 – 4 family, multi-family, second mortgages and equity lines of credit.
|
(2)
|
The consumer segment includes consumer automobile loans.
|
(dollars in thousands)
|
September 30, 2021
|
|||
Lease liabilities
|
$
|
|
||
Right-of-use assets
|
$
|
|
||
Weighted average remaining lease term
|
|
|||
Weighted average discount rate
|
|
%
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
Lease cost (in thousands)
|
2021
|
2020
|
2021
|
2020
|
||||||||||||
Operating lease cost
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Total lease cost
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Cash paid for amounts included in the measurement of lease liabilities
|
$
|
|
$
|
|
$
|
|
$
|
|
Lease payments due (in thousands)
|
As of
September 30, 2021
|
|||
Three months ending December 31, 2021
|
$
|
|
||
Twelve months ending December 31, 2022
|
|
|||
Twelve months ending December 31, 2023
|
|
|||
Twelve months ending December 31, 2024
|
|
|||
Thereafter
|
|
|||
Total undiscounted cash flows
|
$
|
|
||
Discount
|
(
|
)
|
||
Lease liabilities
|
$
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Tax credits and other benefits
|
||||||||||||||||
Amortization of operating losses
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Tax benefit of operating losses*
|
|
|
|
|
||||||||||||
Tax credits
|
|
|
|
|
||||||||||||
Total tax benefits
|
$
|
|
$
|
|
$
|
|
$
|
|
*
|
|
(dollar in thousands)
|
September 30, 2021
|
December 31, 2020
|
||||||
Overnight repurchase agreements
|
$
|
|
$ | |||||
Total short-term borrowings
|
$
|
|
$
|
|
||||
Maximum month-end outstanding balance
|
$
|
|
$
|
|
||||
Average outstanding balance during the period
|
$
|
|
$
|
|
||||
Average interest rate (year-to-date)
|
|
%
|
% | |||||
Average interest rate at end of period
|
|
%
|
|
%
|
September 30,
|
December 31,
|
|||||||
(dollars in thousands)
|
2021
|
2020
|
||||||
Commitments to extend credit:
|
||||||||
Home equity lines of credit
|
$
|
|
$
|
|
||||
Commercial real estate, construction and development loans committed but not funded
|
|
|
||||||
Other lines of credit (principally commercial)
|
|
|
||||||
Total
|
$
|
|
$
|
|
||||
Letters of credit
|
$
|
|
$
|
|
Shares
|
Weighted Average
Grant Date
Fair Value
|
|||||||
Nonvested, January 1, 2021
|
|
$
|
|
|||||
Issued
|
|
|
||||||
Vested
|
(
|
)
|
|
|||||
Forfeited
|
|
|
||||||
Nonvested, September 30, 2021
|
|
$
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
Affected Line Item on
Consolidated Statement of Income |
|||||||||||||||
(dollars in thousands)
|
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Available-for-sale securities
|
|||||||||||||||||
Realized gains on sales of securities
|
$
|
|
$
|
|
$
|
|
$
|
|
Gain on sale of available-for-sale securities, net
|
||||||||
Tax effect
|
|
|
|
|
Income tax expense
|
||||||||||||
$
|
|
$
|
|
$
|
|
$
|
|
(dollars in thousands)
|
Unrealized Gains
(Losses) on
Available-for-Sale
Securities
|
Accumulated Other
Comprehensive Income
|
||||||
Nine Months Ended September 30, 2021
|
||||||||
Balance at beginning of period
|
$
|
|
$
|
|
||||
Net other comprehensive loss
|
(
|
)
|
(
|
)
|
||||
Balance at end of period
|
$
|
|
$
|
|
||||
Nine Months Ended September 30, 2020
|
||||||||
Balance at beginning of period
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Net other comprehensive income
|
|
|
||||||
Balance at end of period
|
$
|
|
$
|
|
(dollars in thousands)
|
Unrealized Gains
(Losses) on
Available-for-Sale
Securities
|
Accumulated Other
Comprehensive Income
|
||||||
Three Months Ended September 30, 2021
|
||||||||
Balance at beginning of period
|
$
|
|
$
|
|
||||
Net other comprehensive loss
|
(
|
)
|
(
|
)
|
||||
Balance at end of period
|
$
|
|
$
|
|
||||
Three Months Ended September 30, 2020
|
||||||||
Balance at beginning of period
|
$
|
|
$
|
|
||||
Net other comprehensive income
|
|
|
||||||
Balance at end of period
|
$
|
|
$
|
|
Three Months Ended September 30, 2021
|
||||||||||||
(dollars in thousands)
|
Pretax
|
Tax
|
Net-of-Tax
|
|||||||||
Unrealized losses on available-for-sale securities:
|
||||||||||||
Unrealized holding losses arising during the period
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||
|
||||||||||||
Total change in accumulated other comprehensive income, net
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||
Three Months Ended September 30, 2020
|
||||||||||||
(dollars in thousands)
|
Pretax
|
Tax
|
Net-of-Tax
|
|||||||||
Unrealized gains on available-for-sale securities:
|
||||||||||||
Unrealized holding gains arising during the period
|
$
|
|
$
|
|
$
|
|
||||||
Reclassification adjustment for gains recognized in income
|
(
|
)
|
|
(
|
)
|
|||||||
Total change in accumulated other comprehensive income, net
|
$
|
|
$
|
|
$
|
|
Nine Months Ended September 30, 2021
|
||||||||||||
(dollars in thousands)
|
Pretax
|
Tax
|
Net-of-Tax
|
|||||||||
Unrealized losses on available-for-sale securities:
|
||||||||||||
Unrealized holding losses arising during the period
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||
|
||||||||||||
Total change in accumulated other comprehensive income, net
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||
Nine Months Ended September 30, 2020
|
||||||||||||
(dollars in thousands)
|
Pretax
|
Tax
|
Net-of-Tax
|
|||||||||
Unrealized gains on available-for-sale securities:
|
||||||||||||
Unrealized holding gains arising during the period
|
$
|
|
$
|
|
$
|
|
||||||
Reclassification adjustment for gains recognized in income
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Total change in accumulated other comprehensive income, net
|
$
|
|
$
|
|
$
|
|
(dollars in thousands except per share data)
|
Net Income Available to
Common Shareholders
(Numerator)
|
Weighted Average
Common Shares
(Denominator)
|
Per Share
Amount |
|||||||||
Three Months Ended September 30, 2021
|
||||||||||||
Net income, basic
|
$
|
|
|
$
|
|
|||||||
Potentially dilutive common shares - employee stock purchase program
|
- |
- |
||||||||||
Diluted
|
$
|
|
|
$
|
|
|||||||
Three Months Ended September 30, 2020
|
||||||||||||
Net income, basic
|
$
|
|
|
$
|
|
|||||||
Potentially dilutive common shares - employee stock purchase program
|
- |
- |
||||||||||
Diluted
|
$
|
|
|
$
|
|
|||||||
Nine Months Ended September 30, 2021
|
||||||||||||
Net income, basic
|
$
|
|
|
$
|
|
|||||||
Potentially dilutive common shares - employee stock purchase program
|
- |
- |
||||||||||
Diluted
|
$
|
|
|
$
|
|
|||||||
Nine Months Ended September 30, 2020
|
||||||||||||
Net income, basic
|
$
|
|
|
$
|
|
|||||||
Potentially dilutive common shares - employee stock purchase program
|
- |
- |
||||||||||
Diluted
|
$
|
|
|
$
|
|
• |
Level 1: Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access
at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions
involving identical assets or liabilities.
|
• |
Level 2: Valuation is based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for
substantially the full term of the asset or liability.
|
• |
Level 3: Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of
the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which
determination of fair value requires significant management judgment or estimation.
|
Fair Value Measurements at September 30, 2021 Using
|
||||||||||||||||
(dollars in thousands)
|
Balance
|
Quoted Prices
in Active
Markets for
Identical
Assets (Level 1) |
Significant
Other
Observable
Inputs
(Level 2) |
Significant
Unobservable
Inputs
(Level 3) |
||||||||||||
Available-for-sale securities
|
||||||||||||||||
U.S. Treasury securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Obligations of U.S. Government agencies
|
|
|
|
|
||||||||||||
Obligations of state and political subdivisions
|
|
|
|
|
||||||||||||
Mortgage-backed securities
|
|
|
|
|
||||||||||||
Money market investments
|
|
|
|
|
||||||||||||
Corporate bonds and other securities
|
|
|
|
|
||||||||||||
Total available-for-sale securities
|
$
|
|
$
|
|
$
|
|
$
|
|
Fair Value Measurements at December 31, 2020 Using
|
||||||||||||||||
(dollars in thousands)
|
Balance
|
Quoted Prices
in Active
Markets for
Identical
Assets (Level 1) |
Significant
Other
Observable
Inputs
(Level 2) |
Significant
Unobservable
Inputs
(Level 3) |
||||||||||||
Available-for-sale securities
|
||||||||||||||||
U.S. Treasury securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Obligations of U.S. Government agencies
|
|
|
|
|
||||||||||||
Obligations of state and political subdivisions
|
|
|
|
|
||||||||||||
Mortgage-backed securities
|
|
|
|
|
||||||||||||
Money market investments
|
|
|
|
|
||||||||||||
Corporate bonds and other securities
|
|
|
|
|
||||||||||||
Total available-for-sale securities
|
$
|
|
$
|
|
$
|
|
$
|
|
Carrying Value at September 30, 2021
|
||||||||||||||||
(dollars in thousands)
|
Fair Value
|
Quoted Prices
in Active
Markets for
Identical
Assets (Level 1) |
Significant
Other
Observable
Inputs
(Level 2) |
Significant
Unobservable
Inputs
(Level 3) |
||||||||||||
Loans
|
||||||||||||||||
Loans held for sale
|
$
|
|
$
|
|
$
|
|
$
|
|
Carrying Value at December 31, 2020
|
||||||||||||||||
(dollars in thousands)
|
Fair Value
|
Quoted Prices
in Active
Markets for
Identical
Assets (Level 1) |
Significant
Other
Observable
Inputs
(Level 2) |
Significant
Unobservable
Inputs
(Level 3) |
||||||||||||
Loans
|
||||||||||||||||
Loans held for sale
|
$
|
|
$
|
|
$
|
|
$
|
|
Fair Value Measurements at September 30, 2021 Using
|
||||||||||||||||
(dollars in thousands)
|
Carrying Value
|
Quoted Prices
in Active
Markets for
Identical
Assets (Level 1) |
Significant
Other
Observable
Inputs
(Level 2) |
Significant
Unobservable
Inputs
(Level 3) |
||||||||||||
Assets
|
||||||||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Securities available-for-sale
|
|
|
|
|
||||||||||||
Restricted securities
|
|
|
|
|
||||||||||||
Loans held for sale
|
|
|
|
|
||||||||||||
Loans, net of allowances for loan losses
|
|
|
|
|
||||||||||||
Bank owned life insurance
|
|
|
|
|
||||||||||||
Accrued interest receivable
|
|
|
|
|
||||||||||||
Liabilities
|
||||||||||||||||
Deposits
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Overnight repurchase agreements
|
|
|
|
|
||||||||||||
Federal Reserve Bank borrowings
|
|
|
|
|
||||||||||||
Long term borrowings
|
||||||||||||||||
Accrued interest payable
|
|
|
|
|
Fair Value Measurements at December 31, 2020 Using
|
||||||||||||||||
(dollars in thousands)
|
Carrying Value
|
Quoted Prices
in Active
Markets for
Identical
Assets (Level 1) |
Significant
Other
Observable
Inputs
(Level 2) |
Significant
Unobservable
Inputs
(Level 3) |
||||||||||||
Assets
|
||||||||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Securities available-for-sale
|
|
|
|
|
||||||||||||
Restricted securities
|
|
|
|
|
||||||||||||
Loans held for sale
|
|
|
|
|
||||||||||||
Loans, net of allowances for loan losses
|
|
|
|
|
||||||||||||
Bank owned life insurance
|
|
|
|
|
||||||||||||
Accrued interest receivable
|
|
|
|
|
||||||||||||
Liabilities
|
||||||||||||||||
Deposits
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Overnight repurchase agreements
|
|
|
|
|
||||||||||||
Federal Reserve Bank borrowings
|
|
|
|
|
||||||||||||
Other borrowings
|
|
|
|
|
||||||||||||
Accrued interest payable
|
|
|
|
|
Three Months Ended September 30, 2021
|
||||||||||||||||||||
(dollars in thousands)
|
Bank
|
Trust
|
Parent
|
Eliminations
|
Consolidated
|
|||||||||||||||
Revenues
|
||||||||||||||||||||
Interest and dividend income
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Income from fiduciary activities
|
|
|
|
|
|
|||||||||||||||
Other income
|
|
|
|
(
|
)
|
|
||||||||||||||
Total operating income
|
|
|
|
(
|
)
|
|
||||||||||||||
Expenses
|
||||||||||||||||||||
Interest expense
|
|
|
|
|
|
|||||||||||||||
Provision for loan losses
|
|
|
|
|
|
|||||||||||||||
Salaries and employee benefits
|
|
|
|
|
|
|||||||||||||||
Other expenses
|
|
|
|
(
|
)
|
|
||||||||||||||
Total operating expenses
|
|
|
|
(
|
)
|
|
||||||||||||||
Income before taxes
|
|
|
|
(
|
)
|
|
||||||||||||||
Income tax expense (benefit)
|
|
|
(
|
)
|
|
|
||||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Capital expenditures
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Total assets
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Three Months Ended September 30, 2020
|
||||||||||||||||||||
(dollars in thousands)
|
Bank
|
Trust
|
Parent
|
Eliminations
|
Consolidated
|
|||||||||||||||
Revenues
|
||||||||||||||||||||
Interest and dividend income
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Income from fiduciary activities
|
|
|
|
|
|
|||||||||||||||
Other income
|
|
|
|
(
|
)
|
|
||||||||||||||
Total operating income
|
|
|
|
(
|
)
|
|
||||||||||||||
Expenses
|
||||||||||||||||||||
Interest expense
|
|
|
|
|
|
|||||||||||||||
Provision for loan losses
|
|
|
|
|
|
|||||||||||||||
Salaries and employee benefits
|
|
|
|
|
|
|||||||||||||||
Other expenses
|
|
|
|
(
|
)
|
|
||||||||||||||
Total operating expenses
|
|
|
|
(
|
)
|
|
||||||||||||||
Income before taxes
|
|
|
|
(
|
)
|
|
||||||||||||||
Income tax expense (benefit)
|
|
|
(
|
)
|
|
|
||||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Capital expenditures
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Total assets
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Nine Months Ended September 30, 2021
|
||||||||||||||||||||
(dollars in thousands)
|
Bank
|
Trust
|
Unconsolidated Parent
|
Eliminations
|
Consolidated
|
|||||||||||||||
Revenues
|
||||||||||||||||||||
Interest and dividend income
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Income from fiduciary activities
|
|
|
|
|
|
|||||||||||||||
Other income
|
|
|
|
(
|
)
|
|
||||||||||||||
Total operating income
|
|
|
|
(
|
)
|
|
||||||||||||||
Expenses
|
||||||||||||||||||||
Interest expense
|
|
|
|
|
|
|||||||||||||||
Provision for loan losses
|
|
|
|
|
|
|||||||||||||||
Salaries and employee benefits
|
|
|
|
|
|
|||||||||||||||
Other expenses
|
|
|
|
(
|
)
|
|
||||||||||||||
Total operating expenses
|
|
|
|
(
|
)
|
|
||||||||||||||
Income before taxes
|
|
|
|
(
|
)
|
|
||||||||||||||
Income tax expense (benefit)
|
|
|
(
|
)
|
|
|
||||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Capital expenditures
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Total assets
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Nine Months Ended September 30, 2020
|
||||||||||||||||||||
(dollars in thousands)
|
Bank
|
Trust
|
Unconsolidated Parent
|
Eliminations
|
Consolidated
|
|||||||||||||||
Revenues
|
||||||||||||||||||||
Interest and dividend income
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Income from fiduciary activities
|
|
|
|
|
|
|||||||||||||||
Other income
|
|
|
|
(
|
)
|
|
||||||||||||||
Total operating income
|
|
|
|
(
|
)
|
|
||||||||||||||
Expenses
|
||||||||||||||||||||
Interest expense
|
|
|
|
|
|
|||||||||||||||
Provision for loan losses
|
|
|
|
|
|
|||||||||||||||
Salaries and employee benefits
|
|
|
|
|
|
|||||||||||||||
Other expenses
|
|
|
|
(
|
)
|
|
||||||||||||||
Total operating expenses
|
|
|
|
(
|
)
|
|
||||||||||||||
Income before taxes
|
|
|
|
(
|
)
|
|
||||||||||||||
Income tax expense (benefit)
|
|
|
(
|
)
|
|
|
||||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Capital expenditures
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Total assets
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Item 2. |
Management's Discussion and Analysis of Financial Condition and Results of Operations.
|
• |
interest rates, such as volatility in short-term interest rates or yields on U.S. Treasury bonds and increases or volatility in mortgage interest rates
|
• |
general business conditions, as well as conditions within the financial markets
|
• |
general economic conditions, including unemployment levels, supply chain disruptions, and slowdowns in economic growth, and particularly related to further and sustained economic impacts of the COVID-19 pandemic
|
• |
the effectiveness of the Company’s efforts to respond to COVID-19, the severity and duration of the pandemic, the impact of loosening of governmental restrictions, the uncertainty regarding new variants, the pace and efficacy of
vaccinations and treatment developments, the pace and durability of economic recovery and the heightened impact that COVID-19 may have on many of the risks described herein
|
• |
potential claims, damages and fines related to litigation or government actions, including litigation or actions arising from the Company’s participation in and administration of programs related to COVID-19, including, among other
things, the PPP under the CARES Act, as subsequently amended
|
• |
the Company’s branch realignment initiatives
|
• |
the Company’s technology, efficiency, and other strategic initiatives
|
• |
the legislative/regulatory climate, regulatory initiatives with respect to financial institutions, products and services, the Consumer Financial Protection Bureau (the CFPB) and the regulatory and enforcement activities of the CFPB
|
• |
monetary and fiscal policies of the U.S. Government, including policies of the U.S. Department of the Treasury and the Board of Governors of the Federal Reserve System (the Federal Reserve), and the effect of these policies on interest
rates and business in our markets
|
• |
future levels of government defense spending particularly in the Company’s service area
|
• |
the impact of potential changes in the political landscape and related policy changes, including monetary, regulatory and trade policies
|
• |
the US. Government’s guarantee of repayment of student or small business loans purchased by the Company
|
• |
the value of securities held in the Company’s investment portfolios
|
• |
demand for loan products and the impact of changes in demand on loan growth
|
• |
the quality or composition of the loan portfolios and the value of the collateral securing those loans
|
• |
changes in the volume and mix of interest-earning assets and interest-bearing liabilities
|
• |
the effects of management’s investment strategy and strategy to manage the net interest margin
|
• |
the level of net charge-offs on loans and the adequacy of our allowance for loan and lease losses
|
• |
performance of the Company’s dealer lending program
|
• |
deposit flows
|
• |
the strength of the Company’s counterparties
|
• |
competition from both banks and non-banks
|
• |
demand for financial services in the Company’s market area
|
• |
implementation of new technologies
|
• |
the Company’s ability to develop and maintain secure and reliable electronic systems
|
• |
any interruption or breach of security in the Company’s information systems or those of the Company’s third-party vendors or their service providers
|
• |
reliance on third parties for key services
|
• |
cyber threats, attacks or events
|
• |
the use of inaccurate assumptions in management’s modeling systems
|
• |
technological risks and developments
|
• |
the commercial and residential real estate markets
|
• |
the demand in the secondary residential mortgage loan markets
|
• |
expansion of the Company’s product offerings
|
• |
accounting principles, policies and guidelines and elections made by the Company thereunder
|
• |
Total assets were $1.3 billion at September 30, 2021, growing $85.4 million or 7.0% from December 31, 2020.
|
• |
Net loans grew $3.7 million from December 31, 2020. PPP loans outstanding at September 30, 2021 were $36.3 million compared to $86.0 million at December 31, 2020. Excluding the decline in PPP loans outstanding, net loans held for
investment (non-GAAP) grew $53.4 million, or 7.2%, from December 31, 2020 to September 30, 2021.
|
• |
Deposits grew $83.5 million to $1.2 billion at September 30, 2021 from December 31, 2020.
|
• |
Non-performing assets (NPAs) decreased to $1.4 million at September 30, 2021 compared to $2.0 million at December 31, 2020 and $5.7 million as of September 30, 2020. NPAs as a percentage of total assets was 0.10% at September 30, 2021,
which compared to 0.16% at December 31, 2020 and 0.45% at September 30, 2020.
|
• |
Average earning assets year to date grew $116.7 million, or 11.0%, to $1.2 billion as of September 30, 2021 compared to $1.1 billion as of September 30, 2020.
|
• |
Book value per share and tangible book value per share (non-GAAP) at September 30, 2021 increased 0.7%, over June 30, 2021 and 2.9% and 3.0%, respectively from September 30, 2020.
|
• |
Net interest income was $9.9 million for the third quarter of 2021, increasing from $9.1 million for the prior quarter and $8.5 million for the third quarter of 2020.
|
• |
Net interest margin improved to 3.24% for the third quarter of 2021 from 3.10% for the second quarter of 2021 and 2.91% for the third quarter of 2020.
|
For the quarter ended September 30,
|
||||||||||||||||||||||||
2021
|
2020
|
|||||||||||||||||||||||
(dollars in thousands)
|
Average
Balance
|
Interest
Income/
Expense
|
Yield/
Rate**
|
Average
Balance
|
Interest
Income/
Expense
|
Yield/
Rate**
|
||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Loans*
|
$
|
838,376
|
$
|
9,704
|
4.59
|
%
|
$
|
873,772
|
$
|
8,801
|
4.01
|
%
|
||||||||||||
Investment securities:
|
||||||||||||||||||||||||
Taxable
|
183,759
|
853
|
1.84
|
%
|
147,942
|
721
|
1.94
|
%
|
||||||||||||||||
Tax-exempt*
|
32,243
|
236
|
2.90
|
%
|
19,795
|
177
|
3.56
|
%
|
||||||||||||||||
Total investment securities
|
216,002
|
1,089
|
2.00
|
%
|
167,737
|
898
|
2.13
|
%
|
||||||||||||||||
Interest-bearing due from banks
|
153,671
|
68
|
0.18
|
%
|
114,646
|
41
|
0.14
|
%
|
||||||||||||||||
Federal funds sold
|
1,958
|
-
|
0.07
|
%
|
5
|
-
|
0.04
|
%
|
||||||||||||||||
Other investments
|
1,033
|
16
|
5.91
|
%
|
3,098
|
46
|
5.90
|
%
|
||||||||||||||||
Total earning assets
|
1,211,040
|
$
|
10,877
|
3.56
|
%
|
1,159,258
|
$
|
9,786
|
3.36
|
%
|
||||||||||||||
Allowance for loan losses
|
(9,486
|
)
|
(9,739
|
)
|
||||||||||||||||||||
Other non-earning assets
|
97,907
|
100,984
|
||||||||||||||||||||||
Total assets
|
$
|
1,299,461
|
$
|
1,250,503
|
||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||||||
Time and savings deposits:
|
||||||||||||||||||||||||
Interest-bearing transaction accounts
|
$
|
72,371
|
$
|
3
|
0.02
|
%
|
$
|
54,065
|
$
|
3
|
0.02
|
%
|
||||||||||||
Money market deposit accounts
|
379,170
|
228
|
0.24
|
%
|
319,674
|
222
|
0.28
|
%
|
||||||||||||||||
Savings accounts
|
115,862
|
12
|
0.04
|
%
|
99,933
|
13
|
0.05
|
%
|
||||||||||||||||
Time deposits
|
175,541
|
441
|
1.00
|
%
|
205,240
|
791
|
1.53
|
%
|
||||||||||||||||
Total time and savings deposits
|
742,944
|
684
|
0.36
|
%
|
678,912
|
1,029
|
0.60
|
%
|
||||||||||||||||
Federal funds purchased, repurchase agreements and other borrowings
|
10,840
|
3
|
0.15
|
%
|
48,740
|
69
|
0.56
|
%
|
||||||||||||||||
Long terrn borrowings
|
25,301
|
252
|
3.95
|
%
|
-
|
-
|
0.00
|
%
|
||||||||||||||||
Federal Home Loan Bank advances
|
-
|
-
|
0.00
|
%
|
40,706
|
171
|
1.67
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
779,085
|
939
|
0.48
|
%
|
768,358
|
1,269
|
0.66
|
%
|
||||||||||||||||
Demand deposits
|
393,591
|
357,078
|
||||||||||||||||||||||
Other liabilities
|
5,007
|
7,880
|
||||||||||||||||||||||
Stockholders' equity
|
121,778
|
117,187
|
||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$
|
1,299,461
|
$
|
1,250,503
|
||||||||||||||||||||
Net interest margin
|
$
|
9,938
|
3.26
|
%
|
$
|
8,517
|
2.92
|
%
|
For the nine months ended September 30,
|
||||||||||||||||||||||||
2021
|
2020
|
|||||||||||||||||||||||
(dollars in thousands)
|
Average
Balance
|
Interest
Income/
Expense
|
Yield/
Rate
|
Average
Balance
|
Interest
Income/
Expense
|
Yield/
Rate
|
||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Loans*
|
$
|
835,107
|
$
|
28,495
|
4.56
|
%
|
$
|
819,325
|
$
|
26,577
|
4.33
|
%
|
||||||||||||
Investment securities:
|
||||||||||||||||||||||||
Taxable
|
168,800
|
2,414
|
1.91
|
%
|
141,746
|
2,296
|
2.16
|
%
|
||||||||||||||||
Tax-exempt*
|
31,596
|
706
|
2.99
|
%
|
16,635
|
460
|
3.69
|
%
|
||||||||||||||||
Total investment securities
|
200,396
|
3,120
|
2.08
|
%
|
158,381
|
2,756
|
2.32
|
%
|
||||||||||||||||
Interest-bearing due from banks
|
143,112
|
163
|
0.15
|
%
|
81,779
|
224
|
0.37
|
%
|
||||||||||||||||
Federal funds sold
|
662
|
-
|
0.07
|
%
|
1,122
|
12
|
1.45
|
%
|
||||||||||||||||
Other investments
|
1,128
|
57
|
6.64
|
%
|
3,080
|
136
|
5.86
|
%
|
||||||||||||||||
Total earning assets
|
1,180,405
|
$
|
31,835
|
3.61
|
%
|
1,063,687
|
$
|
29,705
|
3.73
|
%
|
||||||||||||||
Allowance for loan losses
|
(9,584
|
)
|
(9,667
|
)
|
||||||||||||||||||||
Other nonearning assets
|
100,366
|
106,970
|
||||||||||||||||||||||
Total assets
|
$
|
1,271,187
|
$
|
1,160,990
|
||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||||||
Time and savings deposits:
|
||||||||||||||||||||||||
Interest-bearing transaction accounts
|
$
|
70,238
|
$
|
10
|
0.02
|
%
|
$
|
53,254
|
$
|
9
|
0.02
|
%
|
||||||||||||
Money market deposit accounts
|
366,580
|
649
|
0.24
|
%
|
300,290
|
823
|
0.37
|
%
|
||||||||||||||||
Savings accounts
|
112,723
|
34
|
0.04
|
%
|
93,306
|
44
|
0.06
|
%
|
||||||||||||||||
Time deposits
|
183,534
|
1,536
|
1.12
|
%
|
213,553
|
2,646
|
1.65
|
%
|
||||||||||||||||
Total time and savings deposits
|
733,075
|
2,229
|
0.41
|
%
|
660,403
|
3,522
|
0.71
|
%
|
||||||||||||||||
Federal funds purchased, repurchase agreements and other borrowings
|
17,143
|
33
|
0.26
|
%
|
30,465
|
106
|
0.47
|
%
|
||||||||||||||||
Long terrn borrowings
|
8,526
|
252
|
3.95
|
%
|
-
|
-
|
0.00
|
%
|
||||||||||||||||
Federal Home Loan Bank advances
|
-
|
-
|
0.00
|
%
|
40,398
|
584
|
1.93
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
758,744
|
2,514
|
0.44
|
%
|
731,266
|
4,212
|
0.77
|
%
|
||||||||||||||||
Demand deposits
|
385,427
|
310,199
|
||||||||||||||||||||||
Other liabilities
|
6,997
|
5,328
|
||||||||||||||||||||||
Stockholders' equity
|
120,019
|
114,197
|
||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$
|
1,271,187
|
$
|
1,160,990
|
||||||||||||||||||||
Net interest margin
|
$
|
29,321
|
3.32
|
%
|
$
|
25,493
|
3.20
|
%
|
(dollars in thousands)
|
September 30,
2021
|
December 31,
2020
|
Increase
(Decrease)
|
|||||||||
Nonaccrual loans
|
||||||||||||
Real estate-mortgage (1)
|
$
|
-
|
$
|
311
|
$
|
(311
|
)
|
|||||
Real estate-commercial
|
421
|
903
|
(482
|
)
|
||||||||
Construction
|
-
|
-
|
-
|
|||||||||
Consumer loans
|
3
|
-
|
3
|
|||||||||
Total nonaccrual loans
|
$
|
424
|
$
|
1,214
|
$
|
(790
|
)
|
|||||
Loans past due 90 days or more and accruing interest
|
||||||||||||
Real estate-mortgage (1)
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Consumer loans (2)
|
$
|
937
|
$
|
744
|
$
|
193
|
||||||
Total loans past due 90 days or more and accruing interest
|
$
|
937
|
$
|
744
|
$
|
193
|
||||||
Restructured loans
|
||||||||||||
Real estate-construction
|
$
|
81
|
$
|
83
|
$
|
(2
|
)
|
|||||
Real estate-mortgage (1)
|
459
|
492
|
(33
|
)
|
||||||||
Real estate-commercial
|
425
|
1,352
|
(927
|
)
|
||||||||
Total restructured loans
|
$
|
965
|
$
|
1,927
|
$
|
(962
|
)
|
|||||
Less nonaccrual restructured loans (included above)
|
196
|
1,120
|
(924
|
)
|
||||||||
Less restructured loans currently in compliance (3)
|
769
|
807
|
(38
|
)
|
||||||||
Net nonperforming, accruing restructured loans
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Nonperforming loans
|
$
|
1,361
|
$
|
1,958
|
$
|
(597
|
)
|
|||||
Total nonperforming assets
|
$
|
1,361
|
$
|
1,958
|
$
|
(597
|
)
|
(1) |
The real estate-mortgage segment includes residential 1 – 4 family, second mortgages and equity lines of credit.
|
(2) |
Amounts listed include student loans with principal and interest amounts that are 97 - 98% guaranteed by the federal government. The portion of these guaranteed loans that is past due 90 days or more
totaled $666 thousand at September 30, 2021 and $547 thousand at December 31, 2020.
|
(3) |
As of September 30, 2021 and December 31, 2020, all of the Company's restructured accruing loans were performing in compliance with their modified terms.
|
2021
Regulatory
Minimums
|
September 30, 2021
|
|||||||
Common Equity Tier 1 Capital to Risk-Weighted Assets
|
4.500
|
%
|
12.33
|
%
|
||||
Tier 1 Capital to Risk-Weighted Assets
|
6.000
|
%
|
12.33
|
%
|
||||
Tier 1 Leverage to Average Assets
|
4.000
|
%
|
9.22
|
%
|
||||
Total Capital to Risk-Weighted Assets
|
8.000
|
%
|
13.34
|
%
|
||||
Capital Conservation Buffer
|
2.500
|
%
|
5.34
|
%
|
||||
Risk-Weighted Assets (in thousands)
|
$
|
959,995
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
(dollar in thousands, except per share data)
|
2021
|
2020
|
2021
|
2020
|
||||||||||||
Fully Taxable Equivalent Net Interest Income
|
||||||||||||||||
Net interest income (GAAP)
|
$
|
9,876
|
$
|
8,468
|
$
|
29,138
|
$
|
25,359
|
||||||||
FTE adjustment
|
62
|
49
|
183
|
134
|
||||||||||||
Net interest income (FTE) (non-GAAP)
|
$
|
9,938
|
$
|
8,517
|
$
|
29,321
|
$
|
25,493
|
||||||||
Noninterest income (GAAP)
|
3,606
|
3,657
|
11,278
|
10,893
|
||||||||||||
Total revenue (FTE) (non-GAAP)
|
$
|
13,544
|
$
|
12,174
|
$
|
40,599
|
$
|
36,386
|
||||||||
Noninterest expense (GAAP)
|
10,928
|
10,664
|
32,021
|
29,898
|
||||||||||||
Average earning assets
|
$
|
1,211,040
|
$
|
1,159,258
|
$
|
1,180,405
|
$
|
1,063,687
|
||||||||
Net interest margin
|
3.24
|
%
|
2.91
|
%
|
3.30
|
%
|
3.18
|
%
|
||||||||
Net interest margin (FTE) (non-GAAP)
|
3.26
|
%
|
2.92
|
%
|
3.32
|
%
|
3.20
|
%
|
||||||||
Efficiency ratio
|
81.06
|
%
|
87.95
|
%
|
79.23
|
%
|
82.47
|
%
|
||||||||
Efficiency ratio (FTE) (non-GAAP)
|
80.69
|
%
|
87.59
|
%
|
78.87
|
%
|
82.17
|
%
|
||||||||
Tangible Book Value Per Share
|
September 30, 2021
|
June 30, 2021
|
September 30, 2020
|
|||||||||||||
Total Stockholders Equity (GAAP)
|
$
|
120,767
|
$
|
119,928
|
$
|
116,875
|
||||||||||
Less goodwill
|
1,650
|
1,650
|
1,650
|
|||||||||||||
Less core deposit intangible
|
286
|
297
|
330
|
|||||||||||||
Tangible Stockholders Equity (non-GAAP)
|
$
|
118,831
|
$
|
117,981
|
$
|
114,895
|
||||||||||
Shares issued an d outstanding
|
5,245,842
|
5,244,635
|
5,222,385
|
|||||||||||||
Book value per share
|
$
|
23.02
|
$
|
22.87
|
$
|
22.38
|
||||||||||
Tangible book value per share
|
$
|
22.65
|
$
|
22.50
|
$
|
22.00
|
||||||||||
ALLL as a Percentage of Loans Held for Investment
|
September 30, 2021
|
December 31, 2020
|
||||||||||||||
Loans held for investment (net of deferred fees and costs) (GAAP)
|
$
|
840,151
|
$
|
836,300
|
||||||||||||
Less PPP originations
|
36,320
|
85,983
|
||||||||||||||
Loans held for investment, (net of deferred fees and costs), excluding PPP (non-GAAP)
|
$
|
803,831
|
$
|
750,317
|
||||||||||||
ALLL
|
$
|
9,684
|
$
|
9,541
|
||||||||||||
ALLL as a Percentage of Loans Held for Investment
|
1.15
|
%
|
1.14
|
%
|
||||||||||||
ALLL as a Percentage of Loans Held for Investment, net of PPP originations
|
1.20
|
%
|
1.27
|
%
|
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk.
|
Item 4. |
Controls and Procedures.
|
Item 1. |
Legal Proceedings.
|
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds.
|
Item 3. |
Defaults Upon Senior Securities.
|
Item 4. |
Mine Safety Disclosures.
|
Item 5. |
Other Information.
|
Item 6. |
Exhibits.
|
Exhibit No.
|
Description
|
|
Agreement and Plan of Reorganization, dated as of October 27, 2017, by and among Old Point Financial Corporation, The Old Point National Bank of Phoebus, and Citizens National Bank (incorporated by
reference to Exhibit 2.1 to Form 8-K filed November 2, 2017)
|
||
Articles of Incorporation of Old Point Financial Corporation, as amended effective June 22, 2000 (incorporated by reference to Exhibit 3.1 to Form 10-K filed March 12, 2009)
|
||
Articles of Amendment to Articles of Incorporation of Old Point Financial Corporation, effective May 26, 2016 (incorporated by reference to Exhibit 3.1.1 to Form 8-K filed May 31, 2016)
|
||
Bylaws of Old Point Financial Corporation, as amended and restated August 9, 2016 (incorporated by reference to Exhibit 3.2 to Form 10-Q filed August 10, 2016)
|
||
Form of Subordinated Note (incorporated by reference to Exhibit 4.1 to Form 8-K filed July 16, 2021)
|
||
Form of Subordinated Note Purchase Agreement (incorporated by reference to Exhibit 10.1 to Form 8-K filed July 16, 2021)
|
||
Amendment No. 1 to Settlement Agreement, dated August 12, 2021, among Old Point Financial Corporation, Financial Edge Fund, L.P., Financial Edge-Strategic Fund, L.P., PL Capital/Focused Fund, L.P., PL
Capital, LLC, PL Capital Advisors, LLC, Goodbody/PL Capital, L.P., Goodbody/PL Capital, LLC, Mr. John W. Palmer and Mr. Richard J. Lashley, as Managing Members of PL Capital, LLC, PL Capital Advisors, LLC and Goodbody/PL Capital, LLC and
Mr. William F. Keefe (incorporated by reference to Exhibit 10.14.1 to Form 10-Q filed August 16, 2021).
|
||
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
||
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
||
Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
||
101
|
The following materials from Old Point Financial Corporation’s quarterly report on Form 10-Q for the quarter ended September 30, 2021, formatted in Inline XBRL, filed herewith: (i) Consolidated Balance
Sheets (unaudited for September 30, 2021), (ii) Consolidated Statements of Income (unaudited), (iii) Consolidated Statements of Comprehensive Income (unaudited), (iv) Consolidated Statements of Changes in Stockholders’ Equity (unaudited),
(v) Consolidated Statements of Cash Flows (unaudited), and (vi) Notes to Consolidated Financial Statements (unaudited)
|
|
104
|
The cover page from the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2021, formatted in Inline XBRL (included with Exhibit 101)
|
OLD POINT FINANCIAL CORPORATION
|
||
November 15, 2021
|
/s/Robert F. Shuford, Jr.
|
|
Robert F. Shuford, Jr.
|
||
Chairman, President & Chief Executive Officer
|
||
(Principal Executive Officer)
|
||
November 15, 2021
|
/s/Elizabeth T. Beale
|
|
Elizabeth T. Beale
|
||
Chief Financial Officer & Senior Vice President/Finance
|
||
(Principal Financial & Accounting Officer)
|