|
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
|
Kentucky
|
61-1206757
|
|
(State or other jurisdiction of incorporation organization)
|
(I.R.S. Employer Identification No.)
|
|
2883 Fifth Avenue
Huntington, West Virginia
|
25702
|
|
(Address of principal executive offices)
|
(Zip Code)
|
|
Registrant’s telephone number (304) 525-1600
|
Large accelerated filer
|
Accelerated filer
|
|
Non-accelerated filer
|
Smaller reporting company
|
Emerging growth company
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, no par value
|
PFBI
|
The Nasdaq Stock Market LLC
|
3
|
||||
40
|
||||
49
|
||||
49
|
||||
50
|
||||
50
|
||||
50
|
||||
50
|
||||
50
|
||||
50
|
||||
50
|
||||
50
|
||||
51
|
4
|
||||
5
|
||||
6
|
||||
7
|
||||
8
|
||||
9
|
(UNAUDITED)
|
||||||||
March 31,
2019
|
December 31,
2018
|
|||||||
ASSETS
|
||||||||
Cash and due from banks
|
$
|
24,542
|
$
|
22,992
|
||||
Interest bearing bank balances
|
52,857
|
39,911
|
||||||
Federal funds sold
|
24,722
|
17,872
|
||||||
Cash and cash equivalents
|
102,121
|
80,775
|
||||||
Time deposits with other banks
|
1,094
|
1,094
|
||||||
Securities available for sale
|
369,082
|
365,731
|
||||||
Loans
|
1,155,874
|
1,149,301
|
||||||
Allowance for loan losses
|
(13,479
|
)
|
(13,738
|
)
|
||||
Net loans
|
1,142,395
|
1,135,563
|
||||||
Federal Home Loan Bank stock, at cost
|
3,568
|
3,628
|
||||||
Premises and equipment, net
|
36,745
|
29,385
|
||||||
Real estate acquired through foreclosure
|
14,378
|
14,024
|
||||||
Interest receivable
|
4,638
|
4,295
|
||||||
Goodwill
|
47,640
|
47,640
|
||||||
Other intangible assets
|
5,040
|
5,268
|
||||||
Other assets
|
1,764
|
2,712
|
||||||
Total assets
|
$
|
1,728,465
|
$
|
1,690,115
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Deposits
|
||||||||
Non-interest bearing
|
$
|
394,130
|
$
|
391,763
|
||||
Time deposits, $250,000 and over
|
90,490
|
74,161
|
||||||
Other interest bearing
|
969,199
|
964,203
|
||||||
Total deposits
|
1,453,819
|
1,430,127
|
||||||
Securities sold under agreements to repurchase
|
22,025
|
22,062
|
||||||
Other borrowed funds
|
1,450
|
2,500
|
||||||
FHLB advances
|
7,335
|
8,819
|
||||||
Subordinated debt
|
5,413
|
5,406
|
||||||
Interest payable
|
860
|
733
|
||||||
Other liabilities
|
12,336
|
3,739
|
||||||
Total liabilities
|
1,503,238
|
1,473,386
|
||||||
Stockholders' equity
|
||||||||
Common stock, no par value; 30,000,000 shares authorized; 14,628,902 shares issued and outstanding at
March 31, 2019, and 14,624,193 shares issued and outstanding at December 31, 2018
|
133,338
|
133,248
|
||||||
Retained earnings
|
91,314
|
87,333
|
||||||
Accumulated other comprehensive income (loss)
|
575
|
(3,852
|
)
|
|||||
Total stockholders' equity
|
225,227
|
216,729
|
||||||
Total liabilities and stockholders' equity
|
$
|
1,728,465
|
$
|
1,690,115
|
Three Months Ended
March 31,
|
||||||||
2019
|
2018
|
|||||||
Interest income
|
||||||||
Loans, including fees
|
$
|
16,289
|
$
|
14,034
|
||||
Securities available for sale
|
||||||||
Taxable
|
2,338
|
1,408
|
||||||
Tax-exempt
|
92
|
59
|
||||||
Federal funds sold and other
|
345
|
298
|
||||||
Total interest income
|
19,064
|
15,799
|
||||||
Interest expense
|
||||||||
Deposits
|
2,050
|
1,031
|
||||||
Repurchase agreements and other
|
9
|
8
|
||||||
Other borrowings
|
21
|
47
|
||||||
FHLB advances
|
55
|
-
|
||||||
Subordinated debt
|
94
|
78
|
||||||
Total interest expense
|
2,229
|
1,164
|
||||||
Net interest income
|
16,835
|
14,635
|
||||||
Provision for loan losses
|
560
|
1,115
|
||||||
Net interest income after provision for loan losses
|
16,275
|
13,520
|
||||||
Non-interest income
|
||||||||
Service charges on deposit accounts
|
1,094
|
1,094
|
||||||
Electronic banking income
|
822
|
817
|
||||||
Secondary market mortgage income
|
24
|
32
|
||||||
Other
|
236
|
123
|
||||||
2,176
|
2,066
|
|||||||
Non-interest expenses
|
||||||||
Salaries and employee benefits
|
5,199
|
4,778
|
||||||
Occupancy and equipment expenses
|
1,664
|
1,610
|
||||||
Outside data processing
|
1,384
|
1,249
|
||||||
Professional fees
|
365
|
336
|
||||||
Taxes, other than payroll, property and income
|
238
|
240
|
||||||
Write-downs, expenses, sales of other real estate owned, net
|
249
|
(886
|
)
|
|||||
Amortization of intangibles
|
227
|
195
|
||||||
FDIC insurance
|
124
|
148
|
||||||
Other expenses
|
1,143
|
1,319
|
||||||
10,593
|
8,989
|
|||||||
Income before income taxes
|
7,858
|
6,597
|
||||||
Provision for income taxes
|
1,682
|
1,464
|
||||||
Net income
|
$
|
6,176
|
$
|
5,133
|
||||
Net income per share:
|
||||||||
Basic
|
$
|
0.42
|
$
|
0.38
|
||||
Diluted
|
0.42
|
0.38
|
Three Months Ended
March 31,
|
||||||||
2019
|
2018
|
|||||||
Net income
|
$
|
6,176
|
$
|
5,133
|
||||
Other comprehensive income (loss):
|
||||||||
Unrealized gains (losses) arising during the period
|
5,604
|
(3,862
|
)
|
|||||
Reclassification of realized amount
|
-
|
-
|
||||||
Net change in unrealized gain (loss) on securities
|
5,604
|
(3,862
|
)
|
|||||
Less tax impact
|
(1,177
|
)
|
811
|
|||||
Other comprehensive income (loss)
|
4,427
|
(3,051
|
)
|
|||||
Comprehensive income
|
$
|
10,603
|
$
|
2,082
|
Common
Stock
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (loss)
|
Total
|
|||||||||||||
Balances, January 1, 2018
|
$
|
110,445
|
$
|
74,983
|
$
|
(2,073
|
)
|
$
|
183,355
|
|||||||
Net income
|
-
|
5,133
|
-
|
5,133
|
||||||||||||
Other comprehensive income
|
-
|
-
|
(3,051
|
)
|
(3,051
|
)
|
||||||||||
Cash dividends paid ($0.12 per share)
|
-
|
(1,601
|
)
|
-
|
(1,601
|
)
|
||||||||||
Stock options exercised
|
13
|
-
|
-
|
13
|
||||||||||||
Stock based compensation expense
|
27
|
-
|
-
|
27
|
||||||||||||
Balances, March 31, 2018
|
$
|
110,485
|
$
|
78,515
|
$
|
(5,124
|
)
|
$
|
183,876
|
Common
Stock
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (loss)
|
Total
|
|||||||||||||
Balances, January 1, 2019
|
$
|
133,248
|
$
|
87,333
|
$
|
(3,852
|
)
|
$
|
216,729
|
|||||||
Net income
|
-
|
6,176
|
-
|
6,176
|
||||||||||||
Other comprehensive income
|
-
|
-
|
4,427
|
4,427
|
||||||||||||
Cash dividends paid ($0.15 per share)
|
-
|
(2,195
|
)
|
-
|
(2,195
|
)
|
||||||||||
Stock options exercised
|
51
|
-
|
-
|
51
|
||||||||||||
Stock based compensation expense
|
39
|
-
|
-
|
39
|
||||||||||||
Balances, March 31, 2019
|
$
|
133,338
|
$
|
91,314
|
$
|
575
|
$
|
225,227
|
2019
|
2018
|
|||||||
Cash flows from operating activities
|
||||||||
Net income
|
$
|
6,176
|
$
|
5,133
|
||||
Adjustments to reconcile net income to net cash from operating activities
|
||||||||
Depreciation
|
467
|
433
|
||||||
Provision for loan losses
|
560
|
1,115
|
||||||
Amortization (accretion), net
|
(47
|
)
|
386
|
|||||
Writedowns (gains on the sale) of other real estate owned, net
|
(15
|
)
|
(1,080
|
)
|
||||
Stock compensation expense
|
39
|
27
|
||||||
Changes in:
|
||||||||
Interest receivable
|
(343
|
)
|
342
|
|||||
Other assets
|
(228
|
)
|
1,137
|
|||||
Interest payable
|
127
|
14
|
||||||
Other liabilities
|
1,131
|
(495
|
)
|
|||||
Net cash from operating activities
|
7,867
|
7,012
|
||||||
Cash flows from investing activities
|
||||||||
Net change on time deposits with other banks
|
-
|
-
|
||||||
Purchases of securities available for sale
|
(13,854
|
)
|
(15,527
|
)
|
||||
Proceeds from maturities and calls of securities available for sale
|
15,869
|
13,717
|
||||||
Redemption of FHLB stock
|
60
|
-
|
||||||
Net change in loans
|
(7,555
|
)
|
19,838
|
|||||
Purchases of premises and equipment, net
|
(361
|
)
|
(346
|
)
|
||||
Proceeds from sales of other real estate acquired through foreclosure
|
414
|
7,145
|
||||||
Net cash from (used in) investing activities
|
(5,427
|
)
|
24,827
|
|||||
Cash flows from financing activities
|
||||||||
Net change in deposits
|
23,637
|
30,514
|
||||||
Net change in agreements to repurchase securities
|
(37
|
)
|
(2,517
|
)
|
||||
Repayment of other borrowed funds
|
(1,050
|
)
|
(750
|
)
|
||||
Repayment of FHLB advances
|
(1,500
|
)
|
-
|
|||||
Proceeds from stock option exercises
|
51
|
13
|
||||||
Common stock dividends paid
|
(2,195
|
)
|
(1,601
|
)
|
||||
Net cash from financing activities
|
18,906
|
25,659
|
||||||
Net change in cash and cash equivalents
|
21,346
|
57,498
|
||||||
Cash and cash equivalents at beginning of period
|
80,775
|
82,663
|
||||||
Cash and cash equivalents at end of period
|
$
|
102,121
|
$
|
140,161
|
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid during period for interest
|
$
|
2,102
|
$
|
1,150
|
||||
Loans transferred to real estate acquired through foreclosure
|
753
|
284
|
||||||
Securities purchased not yet settled
|
- |
5,059 |
||||||
Operating right-of-use asset resulting from lease liability
|
7,453 |
- |
March 31, 2018 | ||||||||||||
Year |
Total |
Net Income | ||||||||||
Subsidiary
|
Location
|
Acquired
|
Assets
|
Qtr
|
||||||||
Citizens Deposit Bank & Trust
|
Vanceburg, Kentucky
|
1991
|
$
|
459,409
|
$
|
1,379
|
||||||
Premier Bank, Inc.
|
Huntington, West Virginia
|
1998
|
1,261,402
|
5,374
|
||||||||
Parent and Intercompany Eliminations
|
7,654
|
(577
|
)
|
|||||||||
Consolidated Total
|
$
|
1,728,465
|
$
|
6,176
|
2019
|
Amortized Cost
|
Unrealized Gains
|
Unrealized Losses
|
Fair Value
|
||||||||||||
Available for sale
|
||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||
U. S. sponsored agency MBS - residential
|
$
|
257,523
|
$
|
1,635
|
$
|
(1,719
|
)
|
$
|
257,439
|
|||||||
U. S. sponsored agency CMO’s - residential
|
71,470
|
552
|
(386
|
)
|
71,636
|
|||||||||||
Total mortgage-backed securities of government sponsored agencies
|
328,993
|
2,187
|
(2,105
|
)
|
329,075
|
|||||||||||
U. S. government sponsored agency securities
|
22,328
|
379
|
(89
|
)
|
22,618
|
|||||||||||
Obligations of states and political subdivisions
|
13,581
|
296
|
(10
|
)
|
13,867
|
|||||||||||
Other securities
|
3,452
|
70
|
-
|
3,522
|
||||||||||||
Total available for sale
|
$
|
368,354
|
$
|
2,932
|
$
|
(2,204
|
)
|
$
|
369,082
|
2018
|
Amortized Cost
|
Unrealized Gains
|
Unrealized Losses
|
Fair Value
|
||||||||||||
Available for sale
|
||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||
U. S. sponsored agency MBS - residential
|
$
|
259,575
|
$
|
513
|
$
|
(4,846
|
)
|
$
|
255,242
|
|||||||
U. S. sponsored agency CMO’s - residential
|
69,231
|
94
|
(782
|
)
|
68,543
|
|||||||||||
Total mortgage-backed securities of government sponsored agencies
|
328,806
|
607
|
(5,628
|
)
|
323,785
|
|||||||||||
U. S. government sponsored agency securities
|
24,154
|
196
|
(180
|
)
|
24,170
|
|||||||||||
Obligations of states and political subdivisions
|
14,194
|
176
|
(43
|
)
|
14,327
|
|||||||||||
Other securities
|
3,453
|
6
|
(10
|
)
|
3,449
|
|||||||||||
Total available for sale
|
$
|
370,607
|
$
|
985
|
$
|
(5,861
|
)
|
$
|
365,731
|
Amortized
Cost
|
Fair
Value
|
|||||||
Available for sale
|
||||||||
Due in one year or less
|
$
|
6,795
|
$
|
6,762
|
||||
Due after one year through five years
|
19,152
|
19,352
|
||||||
Due after five years through ten years
|
8,490
|
8,751
|
||||||
Due after ten years
|
4,424
|
4,642
|
||||||
Corporate preferred securities
|
500
|
500
|
||||||
Mortgage-backed securities of government sponsored agencies
|
328,993
|
329,075
|
||||||
Total available for sale
|
$
|
368,354
|
$
|
369,082
|
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Description of Securities
|
Fair Value
|
Unrealized Loss
|
Fair Value
|
Unrealized Loss
|
Fair Value
|
Unrealized Loss
|
||||||||||||||||||
U.S government sponsored agency securities
|
$
|
-
|
$
|
-
|
$
|
10,288
|
$
|
(89
|
)
|
$
|
10,288
|
$
|
(89
|
)
|
||||||||||
U.S government sponsored agency MBS – residential
|
10,718
|
(35
|
)
|
145,531
|
(1,684
|
)
|
156,249
|
(1,719
|
)
|
|||||||||||||||
U.S government sponsored agency CMO – residential
|
-
|
-
|
18,953
|
(386
|
)
|
18,953
|
(386
|
)
|
||||||||||||||||
Obligations of states and political subdivisions
|
-
|
-
|
1,847
|
(10
|
)
|
1,847
|
(10
|
)
|
||||||||||||||||
Total temporarily impaired
|
$
|
10,718
|
$
|
(35
|
)
|
$
|
176,619
|
$
|
(2,169
|
)
|
$
|
187,337
|
$
|
(2,204
|
)
|
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Description of Securities
|
Fair Value
|
Unrealized Loss
|
Fair Value
|
Unrealized Loss
|
Fair Value
|
Unrealized Loss
|
||||||||||||||||||
U.S government sponsored agency securities
|
$
|
999
|
$
|
-
|
$
|
11,057
|
$
|
(180
|
)
|
$
|
12,056
|
$
|
(180
|
)
|
||||||||||
U.S government sponsored agency MBS – residential
|
50,923
|
(243
|
)
|
158,791
|
(4,603
|
)
|
209,714
|
(4,846
|
)
|
|||||||||||||||
U.S government sponsored agency CMO’s – residential
|
16,359
|
(41
|
)
|
26,386
|
(741
|
)
|
42,745
|
(782
|
)
|
|||||||||||||||
Obligations of states and political subdivisions
|
679
|
(6
|
)
|
3,454
|
(37
|
)
|
4,133
|
(43
|
)
|
|||||||||||||||
Other securities
|
1,712
|
(10
|
)
|
-
|
-
|
1,712
|
(10
|
)
|
||||||||||||||||
Total temporarily impaired
|
$
|
70,672
|
$
|
(300
|
)
|
$
|
199,688
|
$
|
(5,561
|
)
|
$
|
270,360
|
$
|
(5,861
|
)
|
2019
|
2018
|
|||||||
Residential real estate
|
$
|
375,905
|
$
|
381,027
|
||||
Multifamily real estate
|
52,929
|
54,016
|
||||||
Commercial real estate:
|
||||||||
Owner occupied
|
138,366
|
138,209
|
||||||
Non-owner occupied
|
291,124
|
282,608
|
||||||
Commercial and industrial
|
106,383
|
103,624
|
||||||
Consumer
|
26,004
|
27,688
|
||||||
Construction and land
|
131,680
|
128,926
|
||||||
All other
|
33,483
|
33,203
|
||||||
$
|
1,155,874
|
$
|
1,149,301
|
Loan Class
|
Balance
Dec 31, 2018
|
Provision (credit) for loan losses
|
Loans charged-off
|
Recoveries
|
Balance
March 31, 2019
|
|||||||||||||||
Residential real estate
|
$
|
1,808
|
$
|
42
|
$
|
(32
|
)
|
$
|
5
|
$
|
1,823
|
|||||||||
Multifamily real estate
|
1,649
|
(61
|
)
|
-
|
2
|
1,590
|
||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
2,120
|
236
|
(533
|
)
|
1
|
1,824
|
||||||||||||||
Non-owner occupied
|
3,058
|
400
|
(57
|
)
|
-
|
3,401
|
||||||||||||||
Commercial and industrial
|
1,897
|
(97
|
)
|
(110
|
)
|
31
|
1,721
|
|||||||||||||
Consumer
|
351
|
110
|
(107
|
)
|
11
|
365
|
||||||||||||||
Construction and land
|
2,255
|
(93
|
)
|
(13
|
)
|
-
|
2,149
|
|||||||||||||
All other
|
600
|
23
|
(51
|
)
|
34
|
606
|
||||||||||||||
Total
|
$
|
13,738
|
$
|
560
|
$
|
(903
|
)
|
$
|
84
|
$
|
13,479
|
Loan Class
|
Balance
Dec 31, 2017
|
Provision (credit) for loan losses
|
Loans charged-off
|
Recoveries
|
Balance
March 31, 2018
|
|||||||||||||||
Residential real estate
|
$
|
2,986
|
$
|
(691
|
)
|
$
|
(49
|
)
|
$
|
16
|
$
|
2,262
|
||||||||
Multifamily real estate
|
978
|
(320
|
)
|
(11
|
)
|
-
|
647
|
|||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
1,653
|
164
|
(2
|
)
|
1
|
1,816
|
||||||||||||||
Non-owner occupied
|
2,313
|
(110
|
)
|
(16
|
)
|
-
|
2,187
|
|||||||||||||
Commercial and industrial
|
1,101
|
813
|
(267
|
)
|
4
|
1,651
|
||||||||||||||
Consumer
|
328
|
49
|
(33
|
)
|
25
|
369
|
||||||||||||||
Construction and land
|
2,408
|
913
|
(19
|
)
|
-
|
3,302
|
||||||||||||||
All other
|
337
|
297
|
(67
|
)
|
39
|
606
|
||||||||||||||
Total
|
$
|
12,104
|
$
|
1,115
|
$
|
(464
|
)
|
$
|
85
|
$
|
12,840
|
2019
|
2018
|
|||||||
Residential real estate
|
$
|
2,655
|
$
|
2,665
|
||||
Commercial real estate
|
||||||||
Owner occupied
|
1,979
|
2,040
|
||||||
Non-owner occupied
|
3,142
|
3,434
|
||||||
Commercial and industrial
|
358
|
1,720
|
||||||
Construction and land
|
629
|
1,212
|
||||||
All other
|
229
|
225
|
||||||
Total carrying amount
|
$
|
8,992
|
$
|
11,296
|
||||
Contractual principal balance
|
$
|
12,859
|
$
|
15,436
|
||||
Carrying amount, net of allowance
|
$
|
8,992
|
$
|
11,296
|
2019
|
2018
|
|||||||
Balance at January 1
|
$
|
642
|
$
|
754
|
||||
New loans purchased
|
-
|
-
|
||||||
Accretion of income
|
(53
|
)
|
(69
|
)
|
||||
Loans placed on non-accrual
|
(14
|
)
|
(41
|
)
|
||||
Income recognized upon full repayment
|
(42
|
)
|
-
|
|||||
Reclassifications from non-accretable difference
|
-
|
-
|
||||||
Disposals
|
-
|
-
|
||||||
Balance at March 31
|
$
|
533
|
$
|
644
|
March 31, 2019
|
Principal Owed on Non-accrual Loans
|
Recorded Investment in Non-accrual Loans
|
Loans Past Due Over 90 Days, still accruing
|
|||||||||
Residential real estate
|
$
|
4,568
|
$
|
3,311
|
$
|
692
|
||||||
Multifamily real estate
|
4,127
|
3,849
|
-
|
|||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
4,332
|
4,050
|
118
|
|||||||||
Non-owner occupied
|
5,890
|
4,726
|
362
|
|||||||||
Commercial and industrial
|
1,128
|
524
|
24
|
|||||||||
Consumer
|
225
|
187
|
-
|
|||||||||
Construction and land
|
1,346
|
1,345
|
13
|
|||||||||
All other
|
75
|
73
|
-
|
|||||||||
Total
|
$
|
21,691
|
$
|
18,065
|
$
|
1,209
|
December 31, 2018
|
Principal Owed on Non-accrual Loans
|
Recorded Investment in Non-accrual Loans
|
Loans Past Due Over 90 Days, still accruing
|
|||||||||
Residential real estate
|
$
|
4,966
|
$
|
3,708
|
$
|
954
|
||||||
Multifamily real estate
|
4,127
|
3,905
|
-
|
|||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
3,692
|
3,436
|
56
|
|||||||||
Non-owner occupied
|
5,761
|
4,592
|
76
|
|||||||||
Commercial and industrial
|
1,303
|
625
|
-
|
|||||||||
Consumer
|
292
|
253
|
-
|
|||||||||
Construction and land
|
857
|
856
|
-
|
|||||||||
All other
|
75
|
73
|
-
|
|||||||||
Total
|
$
|
21,073
|
$
|
17,448
|
$
|
1,086
|
Loan Class
|
Total Loans
|
30-89 Days
Past Due
|
Greater than 90 days past due
|
Total Past Due
|
Loans Not
Past Due
|
|||||||||||||||
Residential real estate
|
$
|
375,905
|
$
|
7,503
|
$
|
1,719
|
$
|
9,222
|
$
|
366,683
|
||||||||||
Multifamily real estate
|
52,929
|
-
|
111
|
111
|
52,818
|
|||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
138,366
|
1,609
|
1,747
|
3,356
|
135,010
|
|||||||||||||||
Non-owner occupied
|
291,124
|
461
|
3,674
|
4,135
|
286,989
|
|||||||||||||||
Commercial and industrial
|
106,383
|
142
|
361
|
503
|
105,880
|
|||||||||||||||
Consumer
|
26,004
|
149
|
52
|
201
|
25,803
|
|||||||||||||||
Construction and land
|
131,680
|
288
|
833
|
1,121
|
130,559
|
|||||||||||||||
All other
|
33,483
|
2
|
73
|
75
|
33,408
|
|||||||||||||||
Total
|
$
|
1,155,874
|
$
|
10,154
|
$
|
8,570
|
$
|
18,724
|
$
|
1,137,150
|
Loan Class
|
Total Loans
|
30-89 Days
Past Due
|
Greater than 90 days past due
|
Total Past Due
|
Loans Not
Past Due
|
|||||||||||||||
Residential real estate
|
$
|
381,027
|
$
|
7,078
|
$
|
2,594
|
$
|
9,672
|
$
|
371,355
|
||||||||||
Multifamily real estate
|
54,016
|
-
|
110
|
110
|
53,906
|
|||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
138,209
|
124
|
2,601
|
2,725
|
135,484
|
|||||||||||||||
Non-owner occupied
|
282,608
|
172
|
3,301
|
3,473
|
279,135
|
|||||||||||||||
Commercial and industrial
|
103,624
|
2,235
|
262
|
2,497
|
101,127
|
|||||||||||||||
Consumer
|
27,688
|
247
|
112
|
359
|
27,329
|
|||||||||||||||
Construction and land
|
128,926
|
388
|
810
|
1,198
|
127,728
|
|||||||||||||||
All other
|
33,203
|
546
|
73
|
619
|
32,584
|
|||||||||||||||
Total
|
$
|
1,149,301
|
$
|
10,790
|
$
|
9,863
|
$
|
20,653
|
$
|
1,128,648
|
Allowance for Loan Losses
|
Loan Balances
|
|||||||||||||||||||||||||||||||
Loan Class
|
Individually Evaluated for Impairment
|
Collectively Evaluated for Impairment
|
Acquired with Deteriorated Credit Quality
|
Total
|
Individually Evaluated for Impairment
|
Collectively Evaluated for Impairment
|
Acquired with Deteriorated Credit Quality
|
Total
|
||||||||||||||||||||||||
Residential real estate
|
$
|
-
|
$
|
1,823
|
$
|
-
|
$
|
1,823
|
$
|
68
|
$
|
373,182
|
$
|
2,655
|
$
|
375,905
|
||||||||||||||||
Multifamily real estate
|
1,231
|
359
|
-
|
1,590
|
3,849
|
49,080
|
-
|
52,929
|
||||||||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||||||
Owner occupied
|
140
|
1,684
|
-
|
1,824
|
3,274
|
133,113
|
1,979
|
138,366
|
||||||||||||||||||||||||
Non-owner occupied
|
299
|
3,102
|
-
|
3,401
|
10,174
|
277,808
|
3,142
|
291,124
|
||||||||||||||||||||||||
Commercial and industrial
|
203
|
1,518
|
-
|
1,721
|
440
|
105,585
|
358
|
106,383
|
||||||||||||||||||||||||
Consumer
|
-
|
365
|
-
|
365
|
-
|
26,004
|
-
|
26,004
|
||||||||||||||||||||||||
Construction and land
|
106
|
2,043
|
2,149
|
1,332
|
129,719
|
629
|
131,680
|
|||||||||||||||||||||||||
All other
|
-
|
606
|
-
|
606
|
-
|
33,254
|
229
|
33,483
|
||||||||||||||||||||||||
Total
|
$
|
1,979
|
$
|
11,500
|
$
|
-
|
$
|
13,479
|
$
|
19,137
|
$
|
1,127,745
|
$
|
8,992
|
$
|
1,155,874
|
Allowance for Loan Losses
|
Loan Balances
|
|||||||||||||||||||||||||||||||
Loan Class
|
Individually Evaluated for Impairment
|
Collectively Evaluated for Impairment
|
Acquired with Deteriorated Credit Quality
|
Total
|
Individually Evaluated for Impairment
|
Collectively Evaluated for Impairment
|
Acquired with Deteriorated Credit Quality
|
Total
|
||||||||||||||||||||||||
Residential real estate
|
$
|
-
|
$
|
1,808
|
$
|
-
|
$
|
1,808
|
$
|
298
|
$
|
378,064
|
$
|
2,665
|
$
|
381,027
|
||||||||||||||||
Multifamily real estate
|
1,281
|
368
|
-
|
1,649
|
3,905
|
50,111
|
-
|
54,016
|
||||||||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||||||
Owner occupied
|
692
|
1,428
|
-
|
2,120
|
2,820
|
133,349
|
2,040
|
138,209
|
||||||||||||||||||||||||
Non-owner occupied
|
267
|
2,791
|
-
|
3,058
|
10,111
|
269,063
|
3,434
|
282,608
|
||||||||||||||||||||||||
Commercial and industrial
|
414
|
1,483
|
-
|
1,897
|
558
|
101,346
|
1,720
|
103,624
|
||||||||||||||||||||||||
Consumer
|
-
|
351
|
-
|
351
|
-
|
27,688
|
-
|
27,688
|
||||||||||||||||||||||||
Construction and land
|
142
|
2,113
|
-
|
2,255
|
1,351
|
126,363
|
1,212
|
128,926
|
||||||||||||||||||||||||
All other
|
-
|
600
|
-
|
600
|
-
|
32,978
|
225
|
33,203
|
||||||||||||||||||||||||
Total
|
$
|
2,796
|
$
|
10,942
|
$
|
-
|
$
|
13,738
|
$
|
19,043
|
$
|
1,118,962
|
$
|
11,296
|
$
|
1,149,301
|
Unpaid Principal Balance
|
Recorded Investment
|
Allowance for Loan Losses Allocated
|
||||||||||
With no related allowance recorded:
|
||||||||||||
Residential real estate
|
$
|
442
|
$
|
230
|
$
|
-
|
||||||
Multifamily real estate
|
110
|
110
|
-
|
|||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
2,916
|
2,639
|
-
|
|||||||||
Non-owner occupied
|
8,552
|
7,830
|
-
|
|||||||||
Commercial and industrial
|
552
|
42
|
-
|
|||||||||
Construction and Land
|
821
|
821
|
-
|
|||||||||
13,393
|
11,672
|
-
|
||||||||||
With an allowance recorded:
|
||||||||||||
Multifamily real estate
|
4,017
|
3,739
|
1,231
|
|||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
1,548
|
1,540
|
140
|
|||||||||
Non-owner occupied
|
2,886
|
2,808
|
299
|
|||||||||
Commercial and industrial
|
403
|
398
|
203
|
|||||||||
Construction and land
|
511
|
511
|
106
|
|||||||||
9,365
|
8,996
|
1,979
|
||||||||||
Total
|
$
|
22,758
|
$
|
20,668
|
$
|
1,979
|
Unpaid Principal Balance
|
Recorded Investment
|
Allowance for Loan Losses Allocated
|
||||||||||
With no related allowance recorded:
|
||||||||||||
Residential real estate
|
$
|
426
|
$
|
298
|
$
|
-
|
||||||
Multifamily real estate
|
110
|
110
|
-
|
|||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
1,305
|
1,092
|
-
|
|||||||||
Non-owner occupied
|
8,458
|
7,740
|
-
|
|||||||||
Commercial and industrial
|
531
|
-
|
-
|
|||||||||
Construction and land
|
786
|
786
|
-
|
|||||||||
11,616
|
10,026
|
-
|
||||||||||
With an allowance recorded:
|
||||||||||||
Multifamily real estate
|
$
|
4,016
|
$
|
3,795
|
$
|
1,281
|
||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
2,523
|
2,478
|
692
|
|||||||||
Non-owner occupied
|
2,852
|
2,781
|
267
|
|||||||||
Commercial and industrial
|
562
|
558
|
414
|
|||||||||
Construction and land
|
565
|
565
|
142
|
|||||||||
10,518
|
10,177
|
2,796
|
||||||||||
Total
|
$
|
22,134
|
$
|
20,203
|
$
|
2,796
|
Three months ended March 31, 2019
|
Three months ended March 31, 2018
|
|||||||||||||||||||||||
Loan Class
|
Average Recorded Investment
|
Interest Income Recognized
|
Cash Basis Interest Recognized
|
Average Recorded Investment
|
Interest Income Recognized
|
Cash Basis Interest Recognized
|
||||||||||||||||||
Residential real estate
|
$
|
264
|
$
|
-
|
$
|
-
|
$
|
303
|
$
|
-
|
$
|
-
|
||||||||||||
Multifamily real estate
|
3,877
|
-
|
-
|
2,444
|
9
|
-
|
||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||
Owner occupied
|
3,874
|
3
|
3
|
3,284
|
25
|
25
|
||||||||||||||||||
Non-owner occupied
|
10,580
|
94
|
91
|
10,521
|
136
|
136
|
||||||||||||||||||
Commercial and industrial
|
500
|
1
|
1
|
1,448
|
8
|
8
|
||||||||||||||||||
Construction and land
|
1,341
|
8
|
8
|
4,799
|
-
|
-
|
||||||||||||||||||
All other
|
-
|
-
|
-
|
291
|
4
|
4
|
||||||||||||||||||
Total
|
$
|
20,436
|
$
|
106
|
$
|
103
|
$
|
23,090
|
$
|
182
|
$
|
173
|
March 31, 2019
|
TDR’s on
Non-accrual
|
Other TDR’s
|
Total TDR’s
|
|||||||||
Residential real estate
|
$
|
126
|
$
|
93
|
$
|
219
|
||||||
Multifamily real estate
|
3,739
|
-
|
3,739
|
|||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
1,540
|
218
|
1,758
|
|||||||||
Non-owner occupied
|
-
|
5,946
|
5,946
|
|||||||||
Commercial and industrial
|
191
|
-
|
191
|
|||||||||
Total
|
$
|
5,596
|
$
|
6,257
|
$
|
11,853
|
December 31, 2018
|
TDR’s on
Non-accrual
|
Other TDR’s
|
Total TDR’s
|
|||||||||
Residential real estate
|
$
|
347
|
$
|
97
|
$
|
444
|
||||||
Multifamily real estate
|
3,795
|
-
|
3,795
|
|||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
1,647
|
222
|
1,869
|
|||||||||
Non-owner occupied
|
-
|
5,964
|
5,964
|
|||||||||
Commercial and industrial
|
191
|
-
|
191
|
|||||||||
Total
|
$
|
5,980
|
$
|
6,283
|
$
|
12,263
|
Loan Class
|
Pass
|
Special Mention
|
Substandard
|
Doubtful
|
Total Loans
|
|||||||||||||||
Residential real estate
|
$
|
364,956
|
$
|
1,624
|
$
|
9,163
|
$
|
162
|
$
|
375,905
|
||||||||||
Multifamily real estate
|
44,251
|
4,829
|
3,849
|
-
|
52,929
|
|||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
126,681
|
4,391
|
7,294
|
-
|
138,366
|
|||||||||||||||
Non-owner occupied
|
274,620
|
3,567
|
12,937
|
-
|
291,124
|
|||||||||||||||
Commercial and industrial
|
102,187
|
3,111
|
1,085
|
-
|
106,383
|
|||||||||||||||
Consumer
|
25,693
|
37
|
274
|
-
|
26,004
|
|||||||||||||||
Construction and land
|
114,764
|
14,996
|
1,920
|
-
|
131,680
|
|||||||||||||||
All other
|
33,163
|
247
|
73
|
-
|
33,483
|
|||||||||||||||
Total
|
$
|
1,086,315
|
$
|
32,802
|
$
|
36,595
|
$
|
162
|
$
|
1,155,874
|
Loan Class
|
Pass
|
Special Mention
|
Substandard
|
Doubtful
|
Total Loans
|
|||||||||||||||
Residential real estate
|
$
|
369,808
|
$
|
1,376
|
$
|
9,681
|
$
|
162
|
$
|
381,027
|
||||||||||
Multifamily real estate
|
45,187
|
4,924
|
3,905
|
-
|
54,016
|
|||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
126,422
|
4,840
|
6,947
|
-
|
138,209
|
|||||||||||||||
Non-owner occupied
|
262,149
|
7,647
|
12,812
|
-
|
282,608
|
|||||||||||||||
Commercial and industrial
|
96,066
|
5,280
|
2,278
|
-
|
103,624
|
|||||||||||||||
Consumer
|
27,344
|
31
|
313
|
-
|
27,688
|
|||||||||||||||
Construction and land
|
107,196
|
19,728
|
2,002
|
128,926
|
||||||||||||||||
All other
|
32,749
|
381
|
73
|
-
|
33,203
|
|||||||||||||||
Total
|
$
|
1,066,921
|
$
|
44,207
|
$
|
38,011
|
$
|
162
|
$
|
1,149,301
|
Mar 31,
2019
|
December 31,
2018
|
Regulatory
Minimum
Requirements
|
To Be Considered
Well Capitalized
|
|||||||||||||
Common Equity Tier 1 Capital (to Risk-Weighted Assets)
|
14.4
|
%
|
14.2
|
%
|
4.5
|
%
|
6.5
|
%
|
||||||||
Tier 1 Capital (to Risk-Weighted Assets)
|
14.9
|
%
|
14.7
|
%
|
6.0
|
%
|
8.0
|
%
|
||||||||
Total Capital (to Risk-Weighted Assets)
|
16.0
|
%
|
15.9
|
%
|
8.0
|
%
|
10.0
|
%
|
||||||||
Tier 1 Capital (to Average Assets)
|
11.0
|
%
|
10.7
|
%
|
4.0
|
%
|
5.0
|
%
|
2019
|
$
|
750
|
||
2020
|
987
|
|||
2021
|
995
|
|||
2022
|
995
|
|||
2023
|
799
|
|||
2024 and thereafter
|
4,172
|
|||
Total undiscounted cash flows
|
8,698 |
|||
Discounted cash flows | (1,245 |
) |
||
Total lease liability
|
$
|
7,453
|
Three Months Ended
March 31,
|
||||||||
2019
|
2018
|
|||||||
Basic earnings per share
|
||||||||
Income available to common stockholders
|
$
|
6,176
|
$
|
5,133
|
||||
Weighted average common shares outstanding
|
14,626,234
|
13,346,375
|
||||||
Earnings per share
|
$
|
0.42
|
$
|
0.38
|
||||
Diluted earnings per share
|
||||||||
Income available to common stockholders
|
$
|
6,176
|
$
|
5,133
|
||||
Weighted average common shares outstanding
|
14,626,234
|
13,346,375
|
||||||
Add dilutive effects of potential additional common stock
|
72,865
|
77,825
|
||||||
Weighted average common and dilutive potential common shares outstanding
|
14,699,099
|
13,424,200
|
||||||
Earnings per share assuming dilution
|
$
|
0.42
|
$
|
0.38
|
Fair Value Measurements at March 31, 2019 Using
|
||||||||||||||||||||
Carrying
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
Financial assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
77,399
|
$
|
77,399
|
$
|
-
|
$
|
-
|
$
|
77,399
|
||||||||||
Time deposits with other banks
|
1,094
|
-
|
1,089
|
-
|
1,089
|
|||||||||||||||
Federal funds sold
|
24,722
|
24,722
|
-
|
-
|
24,722
|
|||||||||||||||
Securities available for sale
|
369,082
|
-
|
368,582
|
500
|
369,082
|
|||||||||||||||
Loans, net
|
1,142,395
|
-
|
-
|
1,127,961
|
1,127,961
|
|||||||||||||||
Federal Home Loan Bank stock
|
3,568
|
n/a
|
n/a
|
n/a
|
n/a
|
|||||||||||||||
Interest receivable
|
4,638
|
-
|
1,100
|
3,538
|
4,638
|
|||||||||||||||
Financial liabilities
|
||||||||||||||||||||
Deposits
|
$
|
(1,453,819
|
)
|
$
|
(1,047,126
|
)
|
$
|
(403,128
|
)
|
$
|
-
|
$
|
(1,450,254
|
)
|
||||||
Securities sold under agreements to repurchase
|
(22,025
|
)
|
-
|
(22,025
|
)
|
-
|
(22,025
|
)
|
||||||||||||
FHLB advance
|
(7,335
|
)
|
-
|
(7,308
|
)
|
-
|
(7,308
|
)
|
||||||||||||
Other borrowed funds
|
(1,450
|
)
|
-
|
(1,444
|
)
|
-
|
(1,444
|
)
|
||||||||||||
Subordinated debt
|
(5,413
|
)
|
-
|
(5,484
|
)
|
-
|
(5,484
|
)
|
||||||||||||
Interest payable
|
(860
|
)
|
(23
|
)
|
(837
|
)
|
-
|
(860
|
)
|
Fair Value Measurements at December 31, 2018 Using
|
||||||||||||||||||||
Carrying
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
Financial assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
62,903
|
$
|
62,903
|
$
|
-
|
$
|
-
|
$
|
62,903
|
||||||||||
Time deposits with other banks
|
1,094
|
-
|
1,085
|
-
|
1,085
|
|||||||||||||||
Federal funds sold
|
17,872
|
17,872
|
-
|
-
|
17,872
|
|||||||||||||||
Securities available for sale
|
365,731
|
-
|
365,231
|
500
|
365,731
|
|||||||||||||||
Loans, net
|
1,135,563
|
-
|
-
|
1,121,517
|
1,121,517
|
|||||||||||||||
Federal Home Loan Bank stock
|
3,628
|
n/a
|
n/a
|
n/a
|
n/a
|
|||||||||||||||
Interest receivable
|
4,295
|
-
|
1,032
|
3,263
|
4,295
|
|||||||||||||||
Financial liabilities
|
||||||||||||||||||||
Deposits
|
$
|
(1,430,127
|
)
|
$
|
(1,039,430
|
)
|
$
|
(384,496
|
)
|
$
|
-
|
$
|
(1,423,926
|
)
|
||||||
Securities sold under agreements to repurchase
|
(22,062
|
)
|
-
|
(22,062
|
)
|
-
|
(22,062
|
)
|
||||||||||||
FHLB advance
|
(8,819
|
)
|
-
|
(8,688
|
)
|
-
|
(8,688
|
)
|
||||||||||||
Other borrowed funds
|
(2,500
|
)
|
-
|
(2,478
|
)
|
-
|
(2,478
|
)
|
||||||||||||
Subordinated debt
|
(5,406
|
)
|
-
|
(5,509
|
)
|
-
|
(5,509
|
)
|
||||||||||||
Interest payable
|
(733
|
)
|
(22
|
)
|
(711
|
)
|
-
|
(733
|
)
|
Fair Value Measurements at
March 31, 2019 Using:
|
||||||||||||||||
Carrying Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
Available for sale
|
||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||
U. S. agency MBS - residential
|
$
|
257,439
|
$
|
-
|
$
|
257,439
|
$
|
-
|
||||||||
U. S. agency CMO’s - residential
|
71,636
|
-
|
71,636
|
-
|
||||||||||||
Total mortgage-backed securities of government sponsored agencies
|
329,075
|
-
|
329,075
|
-
|
||||||||||||
U. S. government sponsored agency securities
|
22,618
|
-
|
22,618
|
-
|
||||||||||||
Obligations of states and political subdivisions
|
13,867
|
-
|
13,867
|
-
|
||||||||||||
Other securities
|
3,522
|
-
|
3,022
|
500
|
||||||||||||
Total securities available for sale
|
$
|
369,082
|
$
|
-
|
$
|
368,582
|
$
|
500
|
Fair Value Measurements at
December 31, 2018 Using:
|
||||||||||||||||
Carrying Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
Available for sale
|
||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||
U. S. agency MBS - residential
|
$
|
255,242
|
$
|
-
|
$
|
255,242
|
$
|
-
|
||||||||
U. S. agency CMO’s
|
68,543
|
-
|
68,543
|
-
|
||||||||||||
Total mortgage-backed securities of government sponsored agencies
|
323,785
|
-
|
323,785
|
-
|
||||||||||||
U. S. government sponsored agency securities
|
24,170
|
-
|
24,170
|
-
|
||||||||||||
Obligations of states and political subdivisions
|
14,327
|
-
|
14,327
|
-
|
||||||||||||
Other securities
|
3,449
|
-
|
2,949
|
500
|
||||||||||||
Total securities available for sale
|
$
|
365,731
|
$
|
-
|
$
|
365,231
|
$
|
500
|
Securities Available-for-sale
|
||||
Three Months Ended
March 31, 2019
|
||||
Balance of recurring Level 3 assets at beginning of period
|
$
|
500
|
||
Total gains or losses (realized/unrealized):
|
||||
Included in earnings – realized
|
-
|
|||
Included in earnings – unrealized
|
-
|
|||
Included in other comprehensive income
|
-
|
|||
Purchases, sales, issuances and settlements, net
|
-
|
|||
Transfers in and/or out of Level 3
|
-
|
|||
Balance of recurring Level 3 assets at period-end
|
$
|
500
|
Fair Value Measurements at March 31, 2019 Using
|
||||||||||||||||
Carrying Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs (Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
Assets:
|
||||||||||||||||
Impaired loans:
|
||||||||||||||||
Multifamily real estate
|
$
|
2,508
|
$
|
-
|
$
|
-
|
$
|
2,508
|
||||||||
Commercial real estate
|
||||||||||||||||
Owner occupied
|
1,400
|
-
|
-
|
1,400
|
||||||||||||
Non-owner occupied
|
2,510
|
-
|
-
|
2,510
|
||||||||||||
Commercial and industrial
|
194
|
-
|
-
|
194
|
||||||||||||
Construction and land
|
405
|
-
|
-
|
405
|
||||||||||||
Total impaired loans
|
$
|
7,017
|
$
|
-
|
$
|
-
|
$
|
7,017
|
||||||||
Other real estate owned:
|
||||||||||||||||
Residential real estate
|
$
|
925
|
$
|
-
|
$
|
-
|
$
|
925
|
||||||||
Multifamily real estate
|
10,307
|
-
|
-
|
10,307
|
||||||||||||
Commercial real estate
|
||||||||||||||||
Non-owner occupied
|
200
|
-
|
-
|
200
|
||||||||||||
Construction and land
|
150
|
-
|
-
|
150
|
||||||||||||
Total OREO
|
$
|
11,582
|
$
|
-
|
$
|
-
|
$
|
11,582
|
March 31,
2019
|
Valuation Techniques
|
Unobservable Inputs
|
Range (Weighted Avg)
|
||||||
Impaired loans:
|
|||||||||
Multifamily real estate
|
$
|
2,508
|
sales comparison
|
adjustment for estimated realizable value
|
45.4%-45.4% (45.4%)
|
||||
Commercial real estate
|
|||||||||
Owner occupied
|
1,400
|
sales comparison
|
adjustment for estimated realizable value
|
31.5%-31.5% (31.5%)
|
|||||
Non-owner occupied
|
2,510
|
income approach
|
adjustment for differences in net operating income expectations
|
16.1%-67.4% (54.2%)
|
|||||
Commercial and industrial
|
194
|
sales comparison
|
adjustment for estimated realizable value
|
0.0%-0.0% (0.0%)
|
|||||
Construction and land
|
405
|
sales comparison
|
adjustment for estimated realizable value
|
53.2%-53.2% (53.2%)
|
|||||
Total impaired loans
|
$
|
7,017
|
|||||||
Other real estate owned:
|
|||||||||
Residential real estate
|
$
|
925
|
sales comparison
|
adjustment for estimated realizable value
|
21.0%-59.8% (22.0%)
|
||||
Multifamily real estate
|
10,307
|
income approach
|
adjustment for differences in net operating income expectations
|
20.0%-20.0% (20.0%)
|
|||||
Commercial real estate
|
|||||||||
Non-owner occupied
|
200
|
sales comparison
|
adjustment for estimated realizable value
|
57.9%-57.9% (57.9%)
|
|||||
Construction and land
|
150
|
sales comparison
|
adjustment for estimated realizable value
|
50.3%-50.3% (50.3%)
|
|||||
Total OREO
|
$
|
11,582
|
Fair Value Measurements at December 31, 2018 Using
|
||||||||||||||||
Carrying Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs (Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
Assets:
|
||||||||||||||||
Impaired loans:
|
||||||||||||||||
Multifamily real estate
|
$
|
2,514
|
$
|
-
|
$
|
-
|
$
|
2,514
|
||||||||
Commercial real estate
|
||||||||||||||||
Owner occupied
|
1,786
|
-
|
-
|
1,786
|
||||||||||||
Non-owner occupied
|
2,514
|
-
|
-
|
2,514
|
||||||||||||
Commercial and industrial
|
144
|
-
|
-
|
144
|
||||||||||||
Construction and land
|
423
|
-
|
-
|
423
|
||||||||||||
Total impaired loans
|
$
|
7,381
|
$
|
-
|
$
|
-
|
$
|
7,381
|
||||||||
Other real estate owned:
|
||||||||||||||||
Residential real estate
|
$
|
984
|
$
|
-
|
$
|
-
|
$
|
984
|
||||||||
Multifamily real estate
|
10,307
|
-
|
-
|
10,307
|
||||||||||||
Commercial real estate
|
||||||||||||||||
Owner occupied
|
125
|
-
|
-
|
125
|
||||||||||||
Non-owner occupied
|
200
|
-
|
-
|
200
|
||||||||||||
Construction and land
|
150
|
-
|
-
|
150
|
||||||||||||
Total OREO
|
$
|
11,766
|
$
|
-
|
$
|
-
|
$
|
11,766
|
December 31,
2018
|
Valuation Techniques
|
Unobservable Inputs
|
Range (Weighted Avg)
|
||||||
Impaired loans:
|
|||||||||
Multifamily real estate
|
$
|
2,514
|
sales comparison
|
adjustment for estimated realizable value
|
45.3%-45.3% (45.3%)
|
||||
Commercial real estate
|
|||||||||
Owner occupied
|
1,786
|
sales comparison
|
adjustment for estimated realizable value
|
31.5%-50.6% (35.5%)
|
|||||
Non-owner occupied
|
2,514
|
income approach
|
adjustment for differences in net operating income expectations
|
16.1%-67.2% (54.1%)
|
|||||
Commercial and industrial
|
144
|
sales comparison
|
adjustment for estimated realizable value
|
0.0%-0.0% (0.0%)
|
|||||
Construction and land
|
423
|
sales comparison
|
adjustment for estimated realizable value
|
53.2%-83.6% (54.5%)
|
|||||
Total impaired loans
|
$
|
7,381
|
|||||||
Other real estate owned:
|
|||||||||
Residential real estate
|
$
|
984
|
sales comparison
|
adjustment for estimated realizable value
|
19.2%-59.8% (21.9%)
|
||||
Multifamily real estate
|
10,307
|
income approach
|
adjustment for differences in net operating income expectations
|
20.0%-20.0% (20.0%)
|
|||||
Commercial real estate
|
|||||||||
Owner occupied
|
125
|
sales comparison
|
adjustment for estimated realizable value
|
42.4%-42.4% (42.4%)
|
|||||
Non-owner occupied
|
200
|
sales comparison
|
adjustment for estimated realizable value
|
57.9%-57.9% (57.9%)
|
|||||
Construction and land
|
150
|
sales comparison
|
adjustment for estimated realizable value
|
50.3%-50.3% (50.3%)
|
|||||
Total OREO
|
$
|
11,766
|
PREMIER FINANCIAL BANCORP, INC.
|
||||||||||||||||||||||||
AVERAGE CONSOLIDATED BALANCE SHEETS
|
||||||||||||||||||||||||
AND NET INTEREST INCOME ANALYSIS
|
||||||||||||||||||||||||
Three Months Ended March 31, 2019
|
Three Months Ended March 31, 2018
|
|||||||||||||||||||||||
Balance
|
Interest
|
Yield/Rate
|
Balance
|
Interest
|
Yield/Rate
|
|||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest Earning Assets
|
||||||||||||||||||||||||
Federal funds sold and other
|
$
|
51,145
|
$
|
345
|
2.74
|
%
|
$
|
62,579
|
$
|
298
|
1.93
|
%
|
||||||||||||
Securities available for sale
|
||||||||||||||||||||||||
Taxable
|
352,106
|
2,338
|
2.66
|
265,697
|
1,408
|
2.12
|
||||||||||||||||||
Tax-exempt
|
13,569
|
92
|
3.43
|
10,186
|
59
|
2.93
|
||||||||||||||||||
Total investment securities
|
365,675
|
2,430
|
2.68
|
275,883
|
1,467
|
2.15
|
||||||||||||||||||
Total loans
|
1,153,448
|
16,288
|
5.73
|
1,045,044
|
14,034
|
5.45
|
||||||||||||||||||
Total interest-earning assets
|
1,570,268
|
19,063
|
4.92
|
%
|
1,383,506
|
15,799
|
4.63
|
%
|
||||||||||||||||
Allowance for loan losses
|
(13,817
|
)
|
(12,309
|
)
|
||||||||||||||||||||
Cash and due from banks
|
24,078
|
33,797
|
||||||||||||||||||||||
Other assets
|
110,478
|
88,743
|
||||||||||||||||||||||
Total assets
|
$
|
1,691,007
|
$
|
1,493,737
|
||||||||||||||||||||
Liabilities and Equity
|
||||||||||||||||||||||||
Interest-bearing liabilities
|
||||||||||||||||||||||||
Interest-bearing deposits
|
$
|
1,042,947
|
2,050
|
0.80
|
$
|
943,475
|
1,031
|
0.44
|
||||||||||||||||
Short-term borrowings
|
22,171
|
9
|
0.16
|
22,551
|
8
|
0.14
|
||||||||||||||||||
FHLB Advances
|
7,675
|
55
|
2.91
|
-
|
-
|
|||||||||||||||||||
Other borrowings
|
1,991
|
21
|
4.28
|
4,620
|
47
|
4.13
|
||||||||||||||||||
Subordinated debt
|
5,408
|
94
|
7.05
|
5,379
|
78
|
5.88
|
||||||||||||||||||
Total interest-bearing liabilities
|
1,080,192
|
2,229
|
0.84
|
%
|
976,025
|
1,164
|
0.48
|
%
|
||||||||||||||||
Non-interest bearing deposits
|
377,442
|
328,527
|
||||||||||||||||||||||
Other liabilities
|
11,690
|
3,802
|
||||||||||||||||||||||
Stockholders’ equity
|
221,683
|
185,383
|
||||||||||||||||||||||
Total liabilities and equity
|
$
|
1,691,007
|
$
|
1,493,737
|
||||||||||||||||||||
Net interest earnings
|
$
|
16,834
|
$
|
14,635
|
||||||||||||||||||||
Net interest spread
|
4.08
|
%
|
4.15
|
%
|
||||||||||||||||||||
Net interest margin
|
4.35
|
%
|
4.29
|
%
|
(In Thousands)
|
||||||||
2019
|
2018
|
|||||||
Non-accrual loans
|
$
|
18,065
|
$
|
17,448
|
||||
Accruing loans which are contractually past due 90 days or more
|
1,209
|
1,086
|
||||||
Accruing restructured loans
|
6,257
|
6,283
|
||||||
Total non-performing loans
|
25,531
|
24,817
|
||||||
Other real estate acquired through foreclosure (OREO)
|
14,378
|
14,024
|
||||||
Total non-performing assets
|
$
|
39,909
|
$
|
38,841
|
||||
Non-performing loans as a percentage of total loans
|
2.21
|
%
|
2.16
|
%
|
||||
Non-performing assets as a percentage of total assets
|
2.31
|
%
|
2.30
|
%
|
1. |
Core deposits consisting of both consumer and commercial deposits and certificates of deposit of $250,000 or more. Management believes that the majority of its $250,000 or more
certificates of deposit are no more volatile than its other deposits. This is due to the nature of the markets in which the subsidiaries operate.
|
2. |
Cash flow generated by repayment of loans and interest.
|
3. |
Arrangements with correspondent banks for purchase of unsecured federal funds.
|
4. |
The sale of securities under repurchase agreements and borrowing from the Federal Home Loan Bank.
|
5. |
Maintenance of an adequate available-for-sale security portfolio. The Company owns $369.1 million of securities at fair value as of March 31, 2019.
|
Item 1.
|
Legal Proceedings
|
None
|
Item 1A.
|
Risk Factors
|
|
Please refer to Premier's Annual Report on Form
10-K for the year ended December 31, 2018 for disclosures with respect to Premier's risk factors at December 31, 2018. There have been no material changes since year-end 2018 in the specified risk factors disclosed in the Annual Report on Form 10-K.
|
||
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
None
|
Item 3.
|
Defaults Upon Senior Securities
|
None
|
Item 4.
|
Mine Safety Disclosures
|
Not Applicable
|
Item 5.
|
Other Information
|
None
|
Item 6.
|
Exhibits
|
1. |
I have reviewed this quarterly report on Form 10-Q of Premier Financial Bancorp, 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(s) 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(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's
auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect
the registrant's ability to record, process, summarize and report financial information; and
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
1. |
I have reviewed this quarterly report on Form 10-Q of Premier Financial Bancorp, 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(s) 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(s) 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.
|
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, and
|
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Apr. 29, 2019 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | PREMIER FINANCIAL BANCORP INC | |
Entity Central Index Key | 0000887919 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 14,636,402 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Stockholders' equity | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 30,000,000 | |
Common stock, shares issued (in shares) | 14,628,902 | 14,624,193 |
Common stock, shares outstanding (in shares) | 14,628,902 | 14,624,193 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||
Net income | $ 6,176 | $ 5,133 |
Other comprehensive income (loss): | ||
Unrealized gains (losses) arising during the period | 5,604 | (3,862) |
Reclassification of realized amount | 0 | 0 |
Net change in unrealized gain (loss) on securities | 5,604 | (3,862) |
Less tax impact | (1,177) | 811 |
Other comprehensive income (loss) | 4,427 | (3,051) |
Comprehensive income | $ 10,603 | $ 2,082 |
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands |
Common Stock [Member] |
Retained Earnings [Member] |
Accumulated Other Comprehensive Income (Loss) [Member] |
Total |
---|---|---|---|---|
Balances at Dec. 31, 2017 | $ 110,445 | $ 74,983 | $ (2,073) | $ 183,355 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 0 | 5,133 | 0 | 5,133 |
Other comprehensive income | 0 | 0 | (3,051) | (3,051) |
Cash dividends paid | 0 | (1,601) | 0 | (1,601) |
Stock options exercised | 13 | 0 | 0 | 13 |
Stock based compensation expense | 27 | 0 | 0 | 27 |
Balances at Mar. 31, 2018 | 110,485 | 78,515 | (5,124) | 183,876 |
Balances at Dec. 31, 2018 | 133,248 | 87,333 | (3,852) | 216,729 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 0 | 6,176 | 0 | 6,176 |
Other comprehensive income | 0 | 0 | 4,427 | 4,427 |
Cash dividends paid | 0 | (2,195) | 0 | (2,195) |
Stock options exercised | 51 | 0 | 0 | 51 |
Stock based compensation expense | 39 | 0 | 0 | 39 |
Balances at Mar. 31, 2019 | $ 133,338 | $ 91,314 | $ 575 | $ 225,227 |
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) [Abstract] | ||
Cash dividends paid (in dollars per share) | $ 0.15 | $ 0.12 |
BASIS OF PRESENTATION |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BASIS OF PRESENTATION [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BASIS OF PRESENTATION | NOTE 1 - BASIS OF PRESENTATION The consolidated financial statements include the accounts of Premier Financial Bancorp, Inc. (the Company) and its wholly owned subsidiaries (the “Banks”):
All significant intercompany transactions and balances have been eliminated. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This standard requires organizations that are lessees to recognize a lease liability, which is the lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified property for the lease term. The new guidance also requires lessees to disclose key information about leasing requirements for leases that were historically classified as operating leases under previous generally accepted accounting principles. This ASU became effective for Premier for interim and annual periods beginning after December 15, 2018. The Company leases some of its branch locations. The Company adopted Topic 842 on January 1, 2019. The Company applied a modified retrospective transition approach for the applicable leases. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. The Company has also elected to use the practical expedient to make an accounting policy election for property leases to include both lease and non-lease components as a single component and account for it as a lease. Upon adoption of this standard, the Company recorded a $7.6 million right of use asset, included in premises and equipment, determined by calculating an estimated present value of future lease payments over the extended lives of the Company’s leases. The Company also recorded a $7.6 million finance lease liability, included in other liabilities. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments. This ASU replaces the measurement for credit losses from a probable incurred estimate with an expected future loss estimate, which is referred to as the “current expected credit loss” or “CECL”. The standard pertains to financial assets measured at amortized cost such as loans, debt securities classified as held-to-maturity, and certain other contracts, in which organizations will now use forward-looking information to enhance their credit loss estimates on these assets. The largest impact will be on the allowance for loan and lease losses. This ASU will become effective for the Company for interim and annual periods beginning after December 15, 2019. Although early adoption is permitted the Company did not elect early adoption. The company has formed a committee to oversee the steps required in the adoption of the new current expected credit loss method. The committee has selected a third-party vendor to assist in data analysis and modeling as well as the required disclosures. Management is currently evaluating the impact of the adoption of this guidance on the Company’s financial statements. Upon adoption, an initial cumulative increase in the allowance for loan losses is currently anticipated by management along with a corresponding decrease in capital as permitted by the standard. However, due to the complexity of the calculation and evolving guidance on adoption management has not yet determined the one-time adjustment. |
SECURITIES |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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SECURITIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SECURITIES | NOTE 2 - SECURITIES Amortized cost and fair value of investment securities, by category, at March 31, 2019 are summarized as follows:
Amortized cost and fair value of investment securities, by category, at December 31, 2018 are summarized as follows:
The amortized cost and fair value of securities at March 31, 2019 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
There were no sales of securities during the first three months of 2019 and 2018. Securities with unrealized losses at March 31, 2019 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows:
Securities with unrealized losses at December 31, 2018 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows:
The investment portfolio is predominately high credit quality interest-bearing bonds with defined maturity dates backed by the U.S. Government or Government sponsored entities. The unrealized losses at March 31, 2019 and December 31, 2018 are price changes resulting from changes in the interest rate environment and are considered to be temporary declines in the value of the securities. Management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery. Their fair value is expected to recover as the bonds approach their maturity date and/or market conditions improve. |
LOANS |
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LOANS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS | NOTE 3 - LOANS Major classifications of loans at March 31, 2019 and December 31, 2018 are summarized as follows:
Activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2019 was as follows:
Activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2018 was as follows:
Purchased Impaired Loans The Company holds purchased loans for which there was, at their acquisition date, evidence of deterioration of credit quality since their origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans is as follows at March 31, 2019 and December 31, 2018.
For those purchased loans disclosed above, the Company did not increase the allowance for loan losses during the three-months ended March 31, 2019 and March 31, 2018. For those purchased loans disclosed above, where the Company can reasonably estimate the cash flows expected to be collected on the loans, a portion of the purchase discount is allocated to an accretable yield adjustment based upon the present value of the future estimated cash flows versus the current carrying value of the loan and the accretable yield portion is being recognized as interest income over the remaining life of the loan. Where the Company cannot reasonably estimate the cash flows expected to be collected on the loans, it has continued to account for those loans using the cost recovery method of income recognition. As such, no portion of a purchase discount adjustment has been determined to meet the definition of an accretable yield adjustment on those loans accounted for using the cost recovery method. If, in the future, cash flows from the borrower(s) can be reasonably estimated, a portion of the purchase discount would be allocated to an accretable yield adjustment based upon the present value of the future estimated cash flows versus the current carrying value of the loan and the accretable yield portion would be recognized as interest income over the remaining life of the loan. Until such accretable yield can be calculated, under the cost recovery method of income recognition, all payments will be used to reduce the carrying value of the loan and no income will be recognized on the loan until the carrying value is reduced to zero. Any loan accounted for under the cost recovery method is also still included as a non-accrual loan in the amounts presented in the tables below. The accretable yield, or income expected to be collected, on the purchased loans above is as follows at March 31, 2019 and March 31, 2018.
Past Due and Non-performing Loans The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of March 31, 2019 and December 31, 2018. The recorded investment in non-accrual loans is less than the principal owed on non-accrual loans due to discounts applied to the carrying value of the loan at time of their acquisition and interest payments made by the borrower which have been used to reduce the recorded investment in the loan rather than recognized as interest income.
Nonaccrual loans and impaired loans are defined differently. Some loans may be included in both categories, and some may only be included in one category. Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The following table presents the aging of the recorded investment in past due loans as of March 31, 2019 by class of loans:
The following table presents the aging of the recorded investment in past due loans as of December 31, 2018 by class of loans:
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2019:
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2018:
In the tables below, total individually evaluated impaired loans include certain purchased loans that were acquired with deteriorated credit quality that are still individually evaluated for impairment. The following table presents loans individually evaluated for impairment by class of loans as of March 31, 2019. The table includes $1,531,000 of loans acquired with deteriorated credit quality that the Company cannot reasonably estimate cash flows such that they are accounted for on the cost recovery method and are still individually evaluated for impairment.
The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2018. The table includes $1,160,000 of loans acquired with deteriorated credit quality for which the Company cannot reasonably estimate cash flows such that they are accounted for on the cost recovery method and are still individually evaluated for impairment.
The following table presents the average balance of loans individually evaluated for impairment and interest income recognized on these loans for the three months ended March 31, 2019 and March 31, 2018. The table includes loans acquired with deteriorated credit quality that are still individually evaluated for impairment.
Troubled Debt Restructurings A loan is classified as a troubled debt restructuring ("TDR") when loan terms are modified due to a borrower's financial difficulties and a concession is granted to a borrower that would not have otherwise been considered. Most of the Company’s loan modifications involve a restructuring of loan terms prior to maturity to temporarily reduce the payment amount and/or to require only interest for a temporary period, usually up to six months. These modifications generally do not meet the definition of a TDR because the modifications are considered to be an insignificant delay in payment. The determination of an insignificant delay in payment is evaluated based on the facts and circumstances of the individual borrower(s). The following table presents TDR’s as of March 31, 2019 and December 31, 2018:
At March 31, 2019, $1,477,000 in specific reserves was allocated to loans that had restructured terms resulting in a negative provision for loan losses of $65,000 for the three months ended March 31, 2019, compared to $379,000 in provision for loan losses on restructured loans during the three months ended March 31, 2018. At December 31, 2018, $1,630,000 in specific reserves was allocated to loans that had restructured terms. There were no commitments to lend additional amounts to these borrowers. There were no TDR’s that occurred during the three months ended March 31, 2019 or the three months ended March 31, 2018. During the three months ended March 31, 2019 and the three months ended March 31, 2018, there were no TDR’s for which there was a payment default within twelve months following the modification. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes non-homogeneous loans, such as commercial, commercial real estate, multifamily residential and commercial purpose loans secured by residential real estate, on a monthly basis. For consumer loans, including consumer loans secured by residential real estate, and smaller balance non-homogeneous loans, the analysis involves monitoring the performing status of the loan. At the time such loans become past due by 90 days or more, the Company evaluates the loan to determine if a change in risk category is warranted. The Company uses the following definitions for risk ratings: Special Mention. Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. As of March 31, 2019, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:
As of December 31, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:
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STOCKHOLDERS' EQUITY AND REGULATORY MATTERS |
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STOCKHOLDERS' EQUITY AND REGULATORY MATTERS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS' EQUITY AND REGULATORY MATTERS | NOTE 4 - STOCKHOLDERS’ EQUITY AND REGULATORY MATTERS The Company’s principal source of funds for dividend payments to shareholders is dividends received from the subsidiary Banks. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year’s net profits, as defined, combined with the retained net profits of the preceding two years, subject to the capital requirements and additional restrictions as discussed below. During 2019 the Banks could, without prior approval, declare dividends to the Company of approximately $8.4 million plus any 2019 net profits retained to the date of the dividend declaration. The Company and the subsidiary Banks are subject to various regulatory capital requirements administered by the 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 financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Banks must meet specific guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. These quantitative measures established by regulation to ensure capital adequacy require the Company and Banks to maintain minimum amounts and ratios (set forth in the following tables). The final rules implementing the Basel Committee on Banking Supervision’s capital guidelines for U.S. Banks (Basel III rules) became effective for the Company and Banks on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule by January 1, 2019. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes, as of March 31, 2019, that the Company and the Banks meet all quantitative capital adequacy requirements to which they are subject. Shown below is a summary of regulatory capital ratios, exclusive of the capital conservation buffer, for the Company:
Beginning on January 1, 2016 an additional capital conservation buffer has been added to the minimum regulatory capital ratios under the regulatory framework for prompt corrective action. The capital conservation buffer is measured as a percentage of risk weighted assets and was phased-in over a four year period from 2016 thru 2019. As of January 1 2019, the capital conservation buffer is 2.50% of risk weighted assets over and above the regulatory minimum capital ratios for Common Equity Tier 1 Capital (CET1) to risk weighted assets, Tier 1 Capital to risk weighted assets, and Total Capital to risk weighted assets. The consequences of not meeting the capital conservation buffer thresholds include restrictions on the payment of dividends, restrictions on the payment of discretionary bonuses, and restrictions on the repurchasing of common shares by the Company. The capital ratios of the Affiliate Banks and the Company exceed the new minimum capital ratios plus the fully phased-in 2.50% capital buffer requiring a CET1 Capital to risk weighted assets ratio of at least 7.00%, a Tier 1 Capital to risk weighted assets ratio of at least 8.50%, and a Total Capital to risk weighted assets ratio of at least 10.50%. The Company’s capital conservation buffer was 8.01% at March 31, 2019 and 7.88% at December 31, 2018, well in excess of the fully phased-in 2.50% required by January 1, 2019. |
PREMISES AND EQUIPMENT |
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PREMISES AND EQUIPMENT [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
PREMISES AND EQUIPMENT | NOTE 5 – PREMISES AND EQUIPMENT The Company leases certain banking facilities and equipment under various agreements with original terms provide for fixed monthly payments over periods generally ranging from two to sixteen years, including renewal options. Certain leases contain renewal options and rent escalation clauses calling for rent increases of the term of the lease. Short-term leases of equipment are recognized on a straight-line basis over the lease term. As of March 31, 2019, the weighted average remaining lease term for operating leases was 10.1 years and the weighted average discount rate used in the measurement of operating lease liabilities was 2.92%. Total lease expense for the three months ended March 31, 2019, which is included in net occupancy and equipment expense, was $312,000, consisting of $28,000 short-term lease expense and $284,000 of operating lease expense. The following table summarizes the future minimum rental commitements under operating leases:
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STOCK COMPENSATION EXPENSE |
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Mar. 31, 2019 | |
STOCK COMPENSATION EXPENSE [Abstract] | |
STOCK COMPENSATION EXPENSE | NOTE 6 - STOCK COMPENSATION EXPENSE From time to time the Company grants stock options to its employees. The Company estimates the fair value of the options at the time they are granted to employees and expenses that fair value over the vesting period of the option grant. On March 20, 2019, 72,075 incentive stock options were granted under the 2012 Long Term Incentive Plan at an exercise price of $15.57, the closing market price of Premier’s common stock on the grant date. These options vest in three equal annual installments ending on March 20, 2022. On March 21, 2018, 67,875 incentive stock options were granted under the 2012 Long Term Incentive Plan at an exercise price of $15.12, the closing market price of Premier’s common stock on the grant date adjusted for the 5 for 4 stock split issued by the Company on June 8, 2018. These options vest in three equal annual installments ending on March 21, 2021. Compensation expense of $39,000 was recorded for the first three months of 2019 while $27,000 was recorded for the first three months of 2018. Stock-based compensation expense related to incentive stock option grants is recognized ratably over the requisite vesting period for all awards. Unrecognized stock-based compensation expense related to stock options totaled $267,000 at March 31, 2019. This unrecognized expense is expected to be recognized over the next 35 months based on the vesting periods of the options. |
EARNINGS PER SHARE |
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EARNINGS PER SHARE [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | NOTE 7 - EARNINGS PER SHARE A reconciliation of the numerators and denominators of the earnings per common share and earnings per common share assuming dilution computations for the three months ended March 31, 2019 and 2018 is presented below:
Stock options for 72,075 shares of common stock were not considered in computing diluted earnings per share for the three months ended March 31, 2019 because they were antidilutive. Stock options for 132,563 shares of common stock were not considered in computing diluted earnings per share for the three months ended March 31, 2018 because they were antidilutive. |
FAIR VALUE |
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FAIR VALUE [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE | NOTE 8 - FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. When possible, the Company looks to active and observable markets to price identical assets or liabilities. When identical assets and liabilities are not traded in active markets, the Company looks to observable market data for similar assets and liabilities. However, certain assets and liabilities are not traded in observable markets and the Company must use other valuation methods to develop a fair value. Carrying amount is the estimated fair value for cash and due from banks, Federal funds sold, accrued interest receivable and payable, demand deposits, short-term debt, and deposits that reprice frequently and fully. Fair values of time deposits with other banks are based on current rates for similar time deposits using the remaining time to maturity. It was not practicable to determine the fair value of Federal Home Loan Bank stock due to the restrictions placed on its transferability. For deposits and variable rate deposits with infrequent repricing, fair value is based on discounted cash flows using current market rates applied to the estimated life. Fair values for loans is measured at the exit price notion by using the discounted cash flow or collateral value but also incorporates additional factors such as using economic factors, credit risk, and market rates and conditions. Fair values for impaired loans are estimated using discounted cash flow analysis or underlying collateral values. Fair value of debt is based on current rates for similar financing. The fair value of commitments to extend credit and standby letters of credit is not material. The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument measured on a recurring basis: Investment Securities: The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). The carrying amounts and estimated fair values of financial instruments at March 31, 2019 were as follows:
The carrying amounts and estimated fair values of financial instruments at December 31, 2018 were as follows:
Assets and Liabilities Measured on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis are summarized below:
There were no transfers between Level 1 and Level 2 during 2019 or 2018. The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2019:
Assets and Liabilities Measured on a Non-Recurring Basis The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument measured on a non-recurring basis: Impaired loans: The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent collateral appraisals. Real estate appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. 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 unique to each property and result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports. Management periodically evaluates the appraised collateral values and will discount the collateral’s appraised value to account for a number of factors including but not limited to the cost of liquidating the collateral, the age of the appraisal, observable deterioration since the appraisal, management’s expertise and knowledge of the client and client’s business, or other factors unique to the collateral. To the extent an adjusted collateral value is lower than the carrying value of an impaired loan, a specific allocation of the allowance for loan losses is assigned to the loan. Other real estate owned (OREO): The fair value of OREO is based on appraisals less cost to sell at the date of foreclosure. Management may obtain additional updated appraisals depending on the length of time since foreclosure. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. 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. Management periodically evaluates the appraised values and will discount a property’s appraised value to account for a number of factors including but not limited to the cost of liquidating the collateral, the age of the appraisal, observable deterioration since the appraisal, or other factors unique to the property. To the extent an adjusted appraised value is lower than the carrying value of an OREO property, a direct charge to earnings is recorded as an OREO write-down. Assets and liabilities measured at fair value on a non-recurring basis at March 31, 2019 are summarized below:
Impaired loans, which are measured for impairment using the fair value of the collateral for collateral dependent loans, had a carrying amount of $8,996,000 at March 31, 2019 with a valuation allowance of $1,979,000 and a carrying amount of $10,177,000 at December 31, 2018 with a valuation allowance of $2,796,000 resulting in a negative provision for loan losses of $189,000 for the three months ended March 31, 2019, compared to a $707,000 provision for loan losses for the three months ended March 31, 2018. The detail of impaired loans by loan class is contained in Note 3 above. Other real estate owned measured at fair value less costs to sell, had a net carrying amount of $11,582,000 which is made up of the outstanding balance of $12,423,000 net of a valuation allowance of $841,000 at March 31, 2019. There were no write downs during the three months ended March 31, 2019 and March 31, 2018. At December 31, 2018, other real estate owned had a net carrying amount of $11,766,000, made up of the outstanding balance of $12,769,000, net of a valuation allowance of $1,003,000. The significant unobservable inputs related to assets and liabilities measured at fair value on a non-recurring basis at March 31, 2019 are summarized below:
Assets and liabilities measured at fair value on a non-recurring basis at December 31, 2018 are summarized below:
The significant unobservable inputs related to assets and liabilities measured at fair value on a non-recurring basis at December 31, 2018 are summarized below:
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BASIS OF PRESENTATION (Policies) |
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Mar. 31, 2019 | |
BASIS OF PRESENTATION [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This standard requires organizations that are lessees to recognize a lease liability, which is the lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified property for the lease term. The new guidance also requires lessees to disclose key information about leasing requirements for leases that were historically classified as operating leases under previous generally accepted accounting principles. This ASU became effective for Premier for interim and annual periods beginning after December 15, 2018. The Company leases some of its branch locations. The Company adopted Topic 842 on January 1, 2019. The Company applied a modified retrospective transition approach for the applicable leases. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. The Company has also elected to use the practical expedient to make an accounting policy election for property leases to include both lease and non-lease components as a single component and account for it as a lease. Upon adoption of this standard, the Company recorded a $7.6 million right of use asset, included in premises and equipment, determined by calculating an estimated present value of future lease payments over the extended lives of the Company’s leases. The Company also recorded a $7.6 million finance lease liability, included in other liabilities. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments. This ASU replaces the measurement for credit losses from a probable incurred estimate with an expected future loss estimate, which is referred to as the “current expected credit loss” or “CECL”. The standard pertains to financial assets measured at amortized cost such as loans, debt securities classified as held-to-maturity, and certain other contracts, in which organizations will now use forward-looking information to enhance their credit loss estimates on these assets. The largest impact will be on the allowance for loan and lease losses. This ASU will become effective for the Company for interim and annual periods beginning after December 15, 2019. Although early adoption is permitted the Company did not elect early adoption. The company has formed a committee to oversee the steps required in the adoption of the new current expected credit loss method. The committee has selected a third-party vendor to assist in data analysis and modeling as well as the required disclosures. Management is currently evaluating the impact of the adoption of this guidance on the Company’s financial statements. Upon adoption, an initial cumulative increase in the allowance for loan losses is currently anticipated by management along with a corresponding decrease in capital as permitted by the standard. However, due to the complexity of the calculation and evolving guidance on adoption management has not yet determined the one-time adjustment. |
BASIS OF PRESENTATION (Tables) |
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Accounts of the Company and its Wholly Owned Subsidiaries | The consolidated financial statements include the accounts of Premier Financial Bancorp, Inc. (the Company) and its wholly owned subsidiaries (the “Banks”):
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SECURITIES (Tables) |
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SECURITIES [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost and Fair Value of Investment Securities, by Category | Amortized cost and fair value of investment securities, by category, at March 31, 2019 are summarized as follows:
Amortized cost and fair value of investment securities, by category, at December 31, 2018 are summarized as follows:
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Amortized Cost and Fair Value of Securities by Contractual Maturity | The amortized cost and fair value of securities at March 31, 2019 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
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Securities with Unrealized Losses in Continuous Unrealized Loss Position | Securities with unrealized losses at March 31, 2019 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows:
Securities with unrealized losses at December 31, 2018 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows:
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LOANS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Major Classifications of Loans | Major classifications of loans at March 31, 2019 and December 31, 2018 are summarized as follows:
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Activity in the Allowance for Loan Losses by Portfolio Segment | Activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2019 was as follows:
Activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2018 was as follows:
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Purchased Impaired Loans | The Company holds purchased loans for which there was, at their acquisition date, evidence of deterioration of credit quality since their origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans is as follows at March 31, 2019 and December 31, 2018.
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Purchase Loans Accretable Yield, or Income Expected to be Collected | The accretable yield, or income expected to be collected, on the purchased loans above is as follows at March 31, 2019 and March 31, 2018.
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Past Due and Non-performing Loans | The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of March 31, 2019 and December 31, 2018. The recorded investment in non-accrual loans is less than the principal owed on non-accrual loans due to discounts applied to the carrying value of the loan at time of their acquisition and interest payments made by the borrower which have been used to reduce the recorded investment in the loan rather than recognized as interest income.
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Aging of Recorded Investment in Past Due Loans by Loan Class | The following table presents the aging of the recorded investment in past due loans as of March 31, 2019 by class of loans:
The following table presents the aging of the recorded investment in past due loans as of December 31, 2018 by class of loans:
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Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method | The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2019:
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2018:
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Loans Individually Evaluated for Impairment by Class of Loans | The following table presents loans individually evaluated for impairment by class of loans as of March 31, 2019. The table includes $1,531,000 of loans acquired with deteriorated credit quality that the Company cannot reasonably estimate cash flows such that they are accounted for on the cost recovery method and are still individually evaluated for impairment.
The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2018. The table includes $1,160,000 of loans acquired with deteriorated credit quality for which the Company cannot reasonably estimate cash flows such that they are accounted for on the cost recovery method and are still individually evaluated for impairment.
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Average Balance of Loans Individually Evaluated for Impairment and Interest Income Recognized | The following table presents the average balance of loans individually evaluated for impairment and interest income recognized on these loans for the three months ended March 31, 2019 and March 31, 2018. The table includes loans acquired with deteriorated credit quality that are still individually evaluated for impairment.
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Troubled Debt Restructurings | The following table presents TDR’s as of March 31, 2019 and December 31, 2018:
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Risk Category of Loans by Class of Loans | As of March 31, 2019, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:
As of December 31, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:
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STOCKHOLDERS' EQUITY AND REGULATORY MATTERS (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS' EQUITY AND REGULATORY MATTERS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Capital Ratios | Shown below is a summary of regulatory capital ratios, exclusive of the capital conservation buffer, for the Company:
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PREMISES AND EQUIPMENT (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
PREMISES AND EQUIPMENT [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Future Minimum Rental Commitments under Operating Leases | The following table summarizes the future minimum rental commitements under operating leases:
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EARNINGS PER SHARE (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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EARNINGS PER SHARE [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Numerators and Denominators of the Earnings Per Share | A reconciliation of the numerators and denominators of the earnings per common share and earnings per common share assuming dilution computations for the three months ended March 31, 2019 and 2018 is presented below:
|
FAIR VALUE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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FAIR VALUE [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amounts and Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of financial instruments at March 31, 2019 were as follows:
The carrying amounts and estimated fair values of financial instruments at December 31, 2018 were as follows:
|
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Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below:
|
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Reconciliation of All Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs | The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2019:
|
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Assets and Liabilities Measured at Fair Value on a Non-recurring Basis | Assets and liabilities measured at fair value on a non-recurring basis at March 31, 2019 are summarized below:
Assets and liabilities measured at fair value on a non-recurring basis at December 31, 2018 are summarized below:
|
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Fair Value Inputs, Assets, Quantitative Information | The significant unobservable inputs related to assets and liabilities measured at fair value on a non-recurring basis at March 31, 2019 are summarized below:
The significant unobservable inputs related to assets and liabilities measured at fair value on a non-recurring basis at December 31, 2018 are summarized below:
|
BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Accounts of the Company and its Wholly Owned Subsidiaries [Abstract] | |||
Total Assets | $ 1,728,465 | $ 1,690,115 | |
Net Income | 6,176 | $ 5,133 | |
ASU 2016-02 [Member] | |||
Recently Issued Accounting Pronouncements [Abstract] | |||
Right of use asset | 7,600 | ||
Finance lease liability | $ 7,600 | ||
Citizens Deposit Bank & Trust [Member] | Vanceburg, Kentucky [Member] | |||
Accounts of the Company and its Wholly Owned Subsidiaries [Abstract] | |||
Year Acquired | 1991 | ||
Total Assets | $ 459,409 | ||
Net Income | $ 1,379 | ||
Premier Bank, Inc. [Member] | Huntington, West Virginia [Member] | |||
Accounts of the Company and its Wholly Owned Subsidiaries [Abstract] | |||
Year Acquired | 1998 | ||
Total Assets | $ 1,261,402 | ||
Net Income | 5,374 | ||
Parent and Intercompany Eliminations [Member] | |||
Accounts of the Company and its Wholly Owned Subsidiaries [Abstract] | |||
Total Assets | 7,654 | ||
Net Income | $ (577) |
LOANS, Major Classifications of Loans (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Major Classifications of Loans [Abstract] | ||
Loans | $ 1,155,874 | $ 1,149,301 |
Residential Real Estate [Member] | ||
Major Classifications of Loans [Abstract] | ||
Loans | 375,905 | 381,027 |
Multifamily Real Estate [Member] | ||
Major Classifications of Loans [Abstract] | ||
Loans | 52,929 | 54,016 |
Commercial Real Estate [Member] | Owner Occupied [Member] | ||
Major Classifications of Loans [Abstract] | ||
Loans | 138,366 | 138,209 |
Commercial Real Estate [Member] | Non-Owner Occupied [Member] | ||
Major Classifications of Loans [Abstract] | ||
Loans | 291,124 | 282,608 |
Commercial and Industrial [Member] | ||
Major Classifications of Loans [Abstract] | ||
Loans | 106,383 | 103,624 |
Consumer [Member] | ||
Major Classifications of Loans [Abstract] | ||
Loans | 26,004 | 27,688 |
Construction and Land [Member] | ||
Major Classifications of Loans [Abstract] | ||
Loans | 131,680 | 128,926 |
All Other [Member] | ||
Major Classifications of Loans [Abstract] | ||
Loans | $ 33,483 | $ 33,203 |
LOANS, TDR's Modified During Period (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019
USD ($)
Loan
|
Mar. 31, 2018
USD ($)
Loan
|
|
TDR's Modified During Period [Abstract] | ||
Number of loans | Loan | 0 | 0 |
TDR's with payment defaults within 12 months after modification | $ | $ 0 | $ 0 |
PREMISES AND EQUIPMENT (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Operating Leases [Abstract] | |
Weighed average remaining lease term | 10 years 1 month 6 days |
Weighted average discount rate used in measurement of operating lease liabilities | 2.92% |
Lease Expenses [Abstract] | |
Short-term lease expense | $ 28 |
Operating lease expense | 284 |
Total lease expense | 312 |
Future Minimum Rental Commitments under Operating Leases [Abstract] | |
2019 | 750 |
2020 | 987 |
2021 | 995 |
2022 | 995 |
2023 | 799 |
2024 and thereafter | 4,172 |
Total undiscounted cash flows | 8,698 |
Discounted cash flows | (1,245) |
Total lease liability | $ 7,453 |
Minimum [Member] | |
Operating Leases [Abstract] | |
Term of leases | 2 years |
Maximum [Member] | |
Operating Leases [Abstract] | |
Term of leases | 16 years |
STOCK COMPENSATION EXPENSE (Details) $ / shares in Units, $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 20, 2019
$ / shares
shares
|
Jun. 08, 2018 |
Mar. 21, 2018
$ / shares
shares
|
Mar. 31, 2019
USD ($)
|
Mar. 31, 2018
USD ($)
|
|
Stock Compensation Expense [Abstract] | |||||
Stock split ratio | 1.25 | ||||
Compensation expense | $ 39 | $ 27 | |||
Unrecognized stock-based compensation expense | $ 267 | ||||
Unrecognized stock-based compensation, period of recognition | 35 months | ||||
2012 Long Term Incentive Plan [Member] | Stock Options [Member] | |||||
Stock Compensation Expense [Abstract] | |||||
Grants (in shares) | shares | 72,075 | 67,875 | |||
Grants (in dollars per share) | $ / shares | $ 15.57 | $ 15.12 | |||
2012 Long Term Incentive Plan [Member] | Stock Options [Member] | Granted on March 20 2019 [Member] | |||||
Stock Compensation Expense [Abstract] | |||||
Stock option vesting periods | 3 years | ||||
2012 Long Term Incentive Plan [Member] | Stock Options [Member] | Granted On March 21 2018 [Member] | |||||
Stock Compensation Expense [Abstract] | |||||
Stock option vesting periods | 3 years |
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Basic earnings per share [Abstract] | ||
Income available to common stockholders | $ 6,176 | $ 5,133 |
Weighted average common shares outstanding (in shares) | 14,626,234 | 13,346,375 |
Earnings per share (in dollars per share) | $ 0.42 | $ 0.38 |
Diluted earnings per share [Abstract] | ||
Income available to common stockholders | $ 6,176 | $ 5,133 |
Weighted average common shares outstanding (in shares) | 14,626,234 | 13,346,375 |
Add dilutive effects of potential additional common stock (in shares) | 72,865 | 77,825 |
Weighted average common and dilutive potential common shares outstanding (in shares) | 14,699,099 | 13,424,200 |
Earnings per share assuming dilution (in dollars per share) | $ 0.42 | $ 0.38 |
Stock Options [Member] | ||
Earnings Per Share [Abstract] | ||
Securities not considered in computing diluted earnings per share (in shares) | 72,075 | 132,563 |
FAIR VALUE, Unobservable Input Reconciliation (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance of recurring Level 3 assets at beginning of period | $ 500 |
Total gains or losses (realized/unrealized) [Abstract] | |
Included in earnings - realized | 0 |
Included in earnings - unrealized | 0 |
Included in other comprehensive income | 0 |
Purchases, sales, issuances and settlements, net | 0 |
Transfers in and/or out of Level 3 | 0 |
Balance of recurring Level 3 assets at period-end | $ 500 |
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