QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Large accelerated filer
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☐
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☒
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Non-accelerated filer
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☐
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Smaller reporting company
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Emerging growth company
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Page
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PART I.
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3
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Item 1.
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3
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3
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4
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6
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7
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8
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||
Item 2.
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26
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Item 3.
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48
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Item 4.
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48
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PART II.
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49
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Item 1.
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49
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Item 1A.
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49
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Item 2.
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49
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Item 3.
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49
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Item 4.
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49
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Item 5.
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49
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Item 6.
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50
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51
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Item 1. |
Consolidated Financial Statements
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September 30,
2021
|
December 31,
2020
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Cash and due from banks
|
$
|
|
$
|
|
||||
Interest-bearing deposits in banks
|
|
|
||||||
Cash and cash equivalents
|
|
|
||||||
Securities available for sale
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|
||||||
Loans held for sale
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||||||
Loans held for investment
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||||||
Allowance for loan losses
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(
|
)
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(
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)
|
||||
Accrued interest receivable
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|
||||||
Premises and equipment, net
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|
||||||
Bank-owned life insurance
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|
||||||
Goodwill
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|
||||||
Intangible assets, net
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|
||||||
Mortgage servicing rights
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|
||||||
Deferred tax asset, net
|
|
|
||||||
Other assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing
|
$
|
|
$
|
|
||||
Interest-bearing
|
|
|
||||||
Total deposits
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|
|
||||||
Short-term borrowings
|
|
|
||||||
Accrued expenses and other liabilities
|
|
|
||||||
Notes payable & other borrowings
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|
|
||||||
Subordinated debt securities
|
|
|
||||||
Junior subordinated deferrable interest debentures
|
|
|
||||||
Total liabilities
|
|
|
||||||
Stockholders’ equity:
|
||||||||
Common stock, $
|
|
|
||||||
Additional paid-in capital
|
|
|
||||||
Retained earnings
|
|
|
||||||
Accumulated other comprehensive income
|
|
|
||||||
Total stockholders’ equity
|
|
|
||||||
Total liabilities and stockholders’ equity
|
$
|
|
$
|
|
Three Months Ended
September 30,
|
Nine Months
Ended
September 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Interest income:
|
||||||||||||||||
Loans, including fees
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Securities:
|
||||||||||||||||
Taxable
|
|
|
|
|
||||||||||||
Non taxable
|
|
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|
|
||||||||||||
Federal funds sold and interest-bearing deposits in banks
|
|
|
|
|
||||||||||||
Total interest income
|
|
|
|
|
||||||||||||
Interest expense:
|
||||||||||||||||
Deposits
|
|
|
|
|
||||||||||||
Notes payable & other borrowings
|
|
|
|
|
||||||||||||
Subordinated debt securities
|
|
|
|
|
||||||||||||
Junior subordinated deferrable interest debentures
|
|
|
|
|
||||||||||||
Total interest expense
|
|
|
|
|
||||||||||||
Net interest income
|
|
|
|
|
||||||||||||
Provision for loan losses
|
|
|
(
|
)
|
|
|||||||||||
Net interest income, after provision for loan losses
|
|
|
|
|
||||||||||||
Noninterest income:
|
||||||||||||||||
Service charges on deposit accounts
|
|
|
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|
||||||||||||
Income from insurance activities
|
|
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|
||||||||||||
Net gain on sales of loans
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|
||||||||||||
Bank card services and interchange fees
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|
||||||||||||
Realized gain on sale of securities
|
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|
||||||||||||
Investment commissions
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|
||||||||||||
Fiduciary fees
|
|
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|
||||||||||||
Other
|
|
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|
||||||||||||
Total noninterest income
|
|
|
|
|
||||||||||||
Noninterest expense:
|
||||||||||||||||
Salaries and employee benefits
|
|
|
|
|
||||||||||||
Occupancy and equipment, net
|
|
|
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|
||||||||||||
Professional services
|
|
|
|
|
||||||||||||
Marketing and development
|
|
|
|
|
||||||||||||
IT and data services
|
|
|
|
|
||||||||||||
Bank card expenses
|
|
|
|
|
||||||||||||
Appraisal expenses
|
|
|
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|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total noninterest expense
|
|
|
|
|
||||||||||||
Income before income taxes
|
|
|
|
|
||||||||||||
Income tax expense
|
|
|
|
|
||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
$
|
|
Three Months Ended
September 30,
|
Nine Months
Ended
September 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Earnings per share:
|
||||||||||||||||
Basic
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Diluted
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Net income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Other comprehensive income (loss):
|
||||||||||||||||
Change in net unrealized gain (loss) on securities available for sale
|
(
|
)
|
(
|
)
|
(
|
)
|
|
|||||||||
Change in net gain (loss) on cash flow hedges
|
|
|
|
(
|
)
|
|||||||||||
Reclassification adjustment for (gain) loss included in net income
|
|
|
|
(
|
)
|
|||||||||||
Tax effect
|
|
|
|
(
|
)
|
|||||||||||
Other comprehensive income (loss)
|
(
|
)
|
(
|
)
|
(
|
)
|
|
|||||||||
Comprehensive income
|
$
|
|
$
|
|
$
|
|
$
|
|
Common Stock
|
Additional
Paid-in
|
Retained
|
Accumulated
Other
Comprehensive
|
|||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Earnings
|
Income (Loss)
|
Total
|
|||||||||||||||||||
Nine
Months Ended September 30,
|
||||||||||||||||||||||||
Balance at December 31, 2019
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||
Net income
|
—
|
|
|
|
|
|
||||||||||||||||||
Cash dividends declared - $
|
—
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Other comprehensive (loss), net of tax
|
—
|
|
|
|
|
|
||||||||||||||||||
Exercise of employee stock options and vesting of restricted stock units, net of
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||
Repurchases of common stock
|
(
|
)
|
(
|
)
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||
Stock based compensation
|
—
|
|
|
|
|
|
||||||||||||||||||
Balance at September 30, 2020
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||
Balance at December 31, 2020
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||
Net income
|
—
|
|
|
|
|
|
||||||||||||||||||
Cash dividends declared - $
|
—
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Other comprehensive income, net of tax
|
—
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Exercise of employee stock options and vesting of restricted stock units, net of
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||
Repurchases of common stock
|
(
|
)
|
(
|
)
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||
Stock based compensation
|
—
|
|
|
|
|
|
||||||||||||||||||
Balance at September 30, 2021
|
|
$
|
|
$
|
|
$ |
|
$
|
|
$
|
|
|||||||||||||
Three Months Ended September 30,
|
||||||||||||||||||||||||
Balance at June 30, 2020
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||
Net income
|
—
|
|
|
|
|
|
||||||||||||||||||
Cash dividends declared - $
|
—
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Other comprehensive income, net of tax
|
—
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Repurchases of common stock
|
|
|
|
|
|
|
||||||||||||||||||
Stock based compensation
|
—
|
|
|
|
|
|
||||||||||||||||||
Balance at September 30, 2020
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||
Balance at June 30, 2021
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||
Net income
|
—
|
|
|
|
|
|
||||||||||||||||||
Cash dividends declared - $
|
—
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Other comprehensive income, net of tax
|
—
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Repurchases of common stock
|
(
|
)
|
(
|
)
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||
Stock based compensation
|
—
|
|
|
|
|
|
||||||||||||||||||
Balance at September 30, 2021
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
For the Nine
Months Ended
September 30,
|
||||||||
2021
|
2020
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Adjustments to reconcile net income to net cash from operating activities:
|
||||||||
Provision for loan losses
|
(
|
)
|
|
|||||
Depreciation and amortization
|
|
|
||||||
Accretion and amortization
|
|
|
||||||
Other gains, net
|
(
|
)
|
(
|
)
|
||||
Net gain on sales of loans
|
(
|
)
|
(
|
)
|
||||
Proceeds from sales of loans held for sale
|
|
|
||||||
Loans originated for sale
|
(
|
)
|
(
|
)
|
||||
Earnings on bank-owned life insurance
|
(
|
)
|
(
|
)
|
||||
Stock based compensation
|
|
|
||||||
Change in valuation of mortgage servicing rights
|
(
|
)
|
|
|||||
Net change in:
|
||||||||
Accrued interest receivable and other assets
|
|
(
|
)
|
|||||
Accrued expenses and other liabilities
|
|
|
||||||
Net cash from operating activities
|
|
|
||||||
Cash flows from investing activities:
|
||||||||
Activity in securities available for sale:
|
||||||||
Purchases
|
(
|
)
|
(
|
)
|
||||
Sales
|
|
|
||||||
Maturities, prepayments, and calls
|
|
|
||||||
Loan originations and principal collections, net
|
(
|
)
|
(
|
)
|
||||
Cash paid for acquisition
|
|
(
|
)
|
|||||
Goodwill adjustment related to litigation settlement |
||||||||
Purchases of premises and equipment, net
|
(
|
)
|
(
|
)
|
||||
Proceeds from sales of premises and equipment
|
|
|
||||||
Proceeds from sales of foreclosed assets
|
|
|
||||||
Net cash from investing activities
|
(
|
)
|
(
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Net change in deposits
|
|
|
||||||
Net change in short-term borrowings
|
(
|
)
|
(
|
)
|
||||
Proceeds from subordinated debt issuance, net
|
||||||||
Proceeds from notes payable & other borrowings
|
|
|
||||||
Payments to tax authorities for stock-based compensation
|
(
|
)
|
(
|
)
|
||||
Payments made on notes payable and other borrowings
|
(
|
)
|
(
|
)
|
||||
Cash dividends on common stock
|
(
|
)
|
(
|
)
|
||||
Payments to repurchase common stock
|
(
|
)
|
(
|
)
|
||||
Net cash from financing activities
|
|
|
||||||
Net change in cash and cash equivalents
|
$
|
|
$
|
|
||||
Beginning cash and cash equivalents
|
|
|
||||||
Ending cash and cash equivalents
|
$
|
|
$
|
|
||||
Supplemental disclosures of cash flow information:
|
||||||||
Interest paid on deposits and borrowed funds
|
$
|
|
$
|
|
||||
Income taxes paid
|
||||||||
Supplemental schedule of noncash activities:
|
||||||||
Loans transferred to foreclosed assets
|
$
|
|
$
|
|
||||
Additions to mortgage servicing rights
|
|
|
Wholly Owned, Consolidated Subsidiaries:
|
|
|
Bank subsidiary
|
|
Non-bank subsidiary
|
|
Non-bank subsidiary
|
|
Non-bank subsidiary
|
|
Non-bank subsidiary
|
|
Non-bank subsidiary
|
Wholly Owned, Equity Method Subsidiaries:
|
|
|
Non-bank subsidiaries
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
|||||||||||||
September 30, 2021
|
||||||||||||||||
Available for sale:
|
||||||||||||||||
U.S. government and agencies
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
State and municipal
|
|
|
(
|
)
|
|
|||||||||||
Mortgage-backed securities
|
|
|
(
|
)
|
|
|||||||||||
Collateralized mortgage obligations
|
|
|
(
|
)
|
|
|||||||||||
Asset-backed and other amortizing securities
|
|
|
|
|
||||||||||||
Other securities
|
|
|
|
|
||||||||||||
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
|||||||||||||
December 31, 2020
|
||||||||||||||||
Available for sale:
|
||||||||||||||||
U.S. government and agencies
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
State and municipal
|
|
|
(
|
)
|
|
|||||||||||
Mortgage-backed securities
|
|
|
(
|
)
|
|
|||||||||||
Collateralized mortgage obligations
|
|
|
(
|
)
|
|
|||||||||||
Asset-backed and other amortizing securities
|
|
|
|
|
||||||||||||
Other securities
|
|
|
(
|
)
|
|
|||||||||||
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Available for Sale
|
||||||||
Amortized
Cost
|
Fair
Value
|
|||||||
Within 1 year
|
$
|
|
$
|
|
||||
After 1 year through 5 years
|
|
|
||||||
After 5 years through 10 years
|
|
|
||||||
After 10 years
|
|
|
||||||
Other
|
|
|
||||||
$
|
|
$
|
|
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
|||||||||||||||||||
September 30, 2021
|
||||||||||||||||||||||||
U.S. government and agencies
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
State and municipal
|
|
|
|
|
|
|
||||||||||||||||||
Mortgage-backed securities
|
|
|
|
|
|
|
||||||||||||||||||
Collateralized mortgage obligations
|
|
|
|
|
|
|
||||||||||||||||||
Asset-backed and other amortizing securities
|
|
|
|
|
|
|
||||||||||||||||||
Other securities
|
|
|
|
|
|
|
||||||||||||||||||
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||
December 31, 2020
|
||||||||||||||||||||||||
U.S. government and agencies
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
State and municipal
|
|
|
|
|
|
|
||||||||||||||||||
Mortgage-backed securities
|
|
|
|
|
|
|
||||||||||||||||||
Collateralized mortgage obligations
|
|
|
|
|
|
|
||||||||||||||||||
Asset-backed and other amortizing securities
|
|
|
|
|
|
|
||||||||||||||||||
Other securities
|
|
|
|
|
|
|
||||||||||||||||||
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
September 30,
2021
|
December 31,
2020
|
|||||||
Commercial real estate
|
$
|
|
$
|
|
||||
Commercial - specialized
|
|
|
||||||
Commercial - general
|
|
|
||||||
Consumer:
|
||||||||
1-4 family residential
|
|
|
||||||
Auto loans
|
|
|
||||||
Other consumer
|
|
|
||||||
Construction
|
|
|
||||||
|
|
|||||||
Allowance for loan losses
|
(
|
)
|
(
|
)
|
||||
Loans, net
|
$
|
|
$
|
|
Beginning
Balance
|
Provision for
Loan Losses
|
Charge-offs
|
Recoveries
|
Ending
Balance
|
||||||||||||||||
For the three months ended September 30, 2021
|
||||||||||||||||||||
Commercial real estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Commercial - specialized
|
|
(
|
)
|
(
|
)
|
|
|
|||||||||||||
Commercial - general
|
|
(
|
)
|
(
|
)
|
|
|
|||||||||||||
Consumer:
|
||||||||||||||||||||
1-4 family residential
|
|
|
|
|
|
|||||||||||||||
Auto loans
|
|
|
(
|
)
|
|
|
||||||||||||||
Other consumer
|
|
|
(
|
)
|
|
|
||||||||||||||
Construction
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||||
For the three months ended September 30, 2020
|
||||||||||||||||||||
Commercial real estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Commercial - specialized
|
|
(
|
)
|
(
|
)
|
|
|
|||||||||||||
Commercial - general
|
|
|
(
|
)
|
|
|
||||||||||||||
Consumer:
|
||||||||||||||||||||
1-4 family residential
|
|
|
(
|
)
|
|
|
||||||||||||||
Auto loans
|
|
|
(
|
)
|
|
|
||||||||||||||
Other consumer
|
|
|
(
|
)
|
|
|
||||||||||||||
Construction
|
|
(
|
)
|
|
|
|
||||||||||||||
Total
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
Beginning
Balance
|
Provision for
Loan Losses
|
Charge-offs
|
Recoveries
|
Ending
Balance
|
||||||||||||||||
For the nine months ended September 30, 2021
|
||||||||||||||||||||
Commercial real estate
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||||
Commercial - specialized
|
|
(
|
)
|
(
|
)
|
|
|
|||||||||||||
Commercial - general
|
|
(
|
)
|
(
|
)
|
|
|
|||||||||||||
Consumer:
|
||||||||||||||||||||
1-4 family residential
|
|
|
(
|
)
|
|
|
||||||||||||||
Auto loans
|
|
(
|
)
|
(
|
)
|
|
|
|||||||||||||
Other consumer
|
|
|
(
|
)
|
|
|
||||||||||||||
Construction
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
||||||||
For the nine months ended September 30, 2020
|
||||||||||||||||||||
Commercial real estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Commercial - specialized
|
|
|
(
|
)
|
|
|
||||||||||||||
Commercial - general
|
|
|
(
|
)
|
|
|
||||||||||||||
Consumer:
|
||||||||||||||||||||
1-4 family residential
|
|
|
(
|
)
|
|
|
||||||||||||||
Auto loans
|
|
|
(
|
)
|
|
|
||||||||||||||
Other consumer
|
|
|
(
|
)
|
|
|
||||||||||||||
Construction
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
Recorded Investment
|
Allowance for Loan Losses
|
|||||||||||||||
Individually
Evaluated
|
Collectively
Evaluated
|
Individually
Evaluated
|
Collectively
Evaluated
|
|||||||||||||
September 30, 2021
|
||||||||||||||||
Commercial real estate
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Commercial - specialized
|
|
|
|
|
||||||||||||
Commercial - general
|
|
|
|
|
||||||||||||
Consumer:
|
||||||||||||||||
1-4 family residential
|
|
|
|
|
||||||||||||
Auto loans
|
|
|
|
|
||||||||||||
Other consumer
|
|
|
|
|
||||||||||||
Construction
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
December 31, 2020
|
||||||||||||||||
Commercial real estate
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Commercial - specialized
|
|
|
|
|
||||||||||||
Commercial - general
|
|
|
|
|
||||||||||||
Consumer:
|
||||||||||||||||
1-4 family residential
|
|
|
|
|
||||||||||||
Auto loans
|
|
|
|
|
||||||||||||
Other consumer
|
|
|
|
|
||||||||||||
Construction
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
Unpaid
Contractual
Principal
Balance
|
Recorded
Investment
With No
Allowance
|
Recorded
Investment
With
Allowance
|
Total
Recorded
Investment
|
Related
Allowance
|
Average
Recorded
Investment
|
|||||||||||||||||||
September 30, 2021
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Commercial - specialized
|
|
|
|
|
|
|
||||||||||||||||||
Commercial - general
|
|
|
|
|
|
|
||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||
1-4 family residential
|
|
|
|
|
|
|
||||||||||||||||||
Auto loans
|
|
|
|
|
|
|
||||||||||||||||||
Other consumer
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
December 31, 2020
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Commercial - specialized
|
|
|
|
|
|
|
||||||||||||||||||
Commercial - general
|
|
|
|
|
|
|
||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||
1-4 family residential
|
|
|
|
|
|
|
||||||||||||||||||
Auto loans
|
|
|
|
|
|
|
||||||||||||||||||
Other consumer
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
30-89 Days
Past Due
|
90 Days or
More Past Due
|
Nonaccrual
|
||||||||||
September 30, 2021
|
||||||||||||
Commercial real estate
|
$
|
|
$
|
|
$
|
|
||||||
Commercial - specialized
|
|
|
|
|||||||||
Commercial - general
|
|
|
|
|||||||||
Consumer:
|
||||||||||||
1-4 family residential
|
|
|
|
|||||||||
Auto loans
|
|
|
|
|||||||||
Other consumer
|
|
|
|
|||||||||
Construction
|
|
|
|
|||||||||
Total
|
$
|
|
$
|
|
$
|
|
||||||
December 31, 2020
|
||||||||||||
Commercial real estate
|
$
|
|
$
|
|
$
|
|
||||||
Commercial - specialized
|
|
|
|
|||||||||
Commercial - general
|
|
|
|
|||||||||
Consumer:
|
||||||||||||
1-4 family residential
|
|
|
|
|||||||||
Auto loans
|
|
|
|
|||||||||
Other consumer
|
|
|
|
|||||||||
Construction
|
|
|
|
|||||||||
Total
|
$
|
|
$
|
|
$
|
|
Pass
|
Special
Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
September 30, 2021
|
||||||||||||||||||||
Commercial real estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Commercial - specialized
|
|
|
|
|
|
|||||||||||||||
Commercial - general
|
|
|
|
|
|
|||||||||||||||
Consumer:
|
||||||||||||||||||||
1-4 family residential
|
|
|
|
|
|
|||||||||||||||
Auto loans
|
|
|
|
|
|
|||||||||||||||
Other consumer
|
|
|
|
|
|
|||||||||||||||
Construction
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
December 31, 2020
|
||||||||||||||||||||
Commercial real estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Commercial - specialized
|
|
|
|
|
|
|||||||||||||||
Commercial - general
|
|
|
|
|
|
|||||||||||||||
Consumer:
|
||||||||||||||||||||
1-4 family residential
|
|
|
|
|
|
|||||||||||||||
Auto loans
|
|
|
|
|
|
|||||||||||||||
Other consumer
|
|
|
|
|
|
|||||||||||||||
Construction
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
September 30,
2021
|
December 31,
2020
|
|||||||
Beginning goodwill
|
$
|
|
$
|
|
||||
Arising from business combinations
|
|
|
||||||
Measurement period acquisition adjustment
|
|
|
||||||
Ending goodwill
|
$
|
|
$
|
|
||||
Amortized intangible assets
|
||||||||
Core deposit intangible
|
$
|
|
$
|
|
||||
Less: Accumulated amortization
|
(
|
)
|
(
|
)
|
||||
|
|
|||||||
Other intangibles
|
|
|
||||||
Arising from business combinations
|
|
|
||||||
Less: Accumulated amortization
|
(
|
)
|
(
|
)
|
||||
|
|
|||||||
Other intangible assets, net
|
$
|
|
$
|
|
Number
of Shares
|
Weighted-Average
Exercise Price
|
Weighted-Average
Remaining Contractual
Life in Years
|
Aggregate
Intrinsic Value
|
|||||||||||||
Nine Months Ended September 30, 2021
|
||||||||||||||||
Outstanding at beginning of year:
|
|
$
|
|
$
|
|
|||||||||||
Granted
|
|
|
|
|||||||||||||
Exercised
|
(
|
)
|
|
(
|
)
|
|||||||||||
Forfeited
|
(
|
)
|
|
(
|
)
|
|||||||||||
Expired
|
|
|
|
|||||||||||||
Balance, September 30, 2021
|
|
$
|
|
|
$
|
|
||||||||||
Exercisable at end of period
|
|
$
|
|
|
$
|
|
||||||||||
Vested at end of period
|
|
$
|
|
|
$
|
|
Nine
Months Ended
September 30,
|
||||||||
2021
|
2020
|
|||||||
Expected volatility
|
|
|
%
|
|||||
Expected dividend yield
|
|
%
|
|
%
|
||||
Expected term (years)
|
|
|
||||||
Risk-free interest rate
|
|
|
%
|
|||||
Weighted average grant date fair value
|
$
|
|
$
|
|
Number
of Shares
|
Weighted-Average
Grant Date
Fair Value
|
|||||||
Nine Months Ended September 30, 2021
|
||||||||
Outstanding at beginning of year:
|
|
$
|
|
|||||
Granted
|
|
|
||||||
Vested
|
(
|
)
|
|
|||||
Forfeited
|
(
|
)
|
|
|||||
Balance, September 30, 2021
|
|
$
|
|
September 30,
2021
|
December 31,
2020
|
|||||||
Commitments to grant loans and unfunded commitments under lines of credit
|
$
|
|
$
|
|
||||
Standby letters of credit
|
|
|
Actual
|
Minimum Required
Under BASEL III
Fully Phased-In
|
To Be Well Capitalized
Under Prompt Corrective
Action Provisions
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
September 30, 2021
|
||||||||||||||||||||||||
Total Capital to Risk Weighted Assets:
|
||||||||||||||||||||||||
Consolidated
|
$
|
|
|
%
|
$
|
|
|
%
|
N/A
|
N/A
|
||||||||||||||
City Bank
|
|
|
%
|
|
|
%
|
$
|
|
|
%
|
||||||||||||||
Tier I Capital to Risk Weighted Assets:
|
||||||||||||||||||||||||
Consolidated
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
||||||||||||||||
City Bank
|
|
|
%
|
|
|
%
|
|
|
%
|
|||||||||||||||
Common Equity Tier 1 to Risk Weighted Assets:
|
||||||||||||||||||||||||
Consolidated
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
||||||||||||||||
City Bank
|
|
|
%
|
|
|
%
|
|
|
%
|
|||||||||||||||
Tier I Capital to Average Assets:
|
||||||||||||||||||||||||
Consolidated
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
||||||||||||||||
City Bank
|
|
|
%
|
|
|
%
|
|
|
%
|
|||||||||||||||
December 31, 2020
|
||||||||||||||||||||||||
Total Capital to Risk Weighted Assets:
|
||||||||||||||||||||||||
Consolidated
|
$
|
|
|
%
|
$
|
|
|
%
|
N/A
|
N/A
|
||||||||||||||
City Bank
|
|
|
%
|
|
|
%
|
$
|
|
|
%
|
||||||||||||||
Tier I Capital to Risk Weighted Assets:
|
||||||||||||||||||||||||
Consolidated
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
||||||||||||||||
City Bank
|
|
|
%
|
|
|
%
|
|
|
%
|
|||||||||||||||
Common Equity Tier 1 to Risk Weighted Assets:
|
||||||||||||||||||||||||
Consolidated
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
||||||||||||||||
City Bank
|
|
|
%
|
|
|
%
|
|
|
%
|
|||||||||||||||
Tier I Capital to Average Assets:
|
||||||||||||||||||||||||
Consolidated
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
||||||||||||||||
City Bank
|
|
|
%
|
|
|
%
|
|
|
%
|
September 30, 2021
|
December 31, 2020
|
|||||||||||||||
Notional
Amount
|
Fair
Value
|
Notional
Amount
|
Fair
Value
|
|||||||||||||
Included in other liabilities:
|
||||||||||||||||
Interest rate swaps related to fixed rate loans
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Included in other assets:
|
||||||||||||||||
Interest rate swaps related to fixed rate loans
|
$
|
|
$
|
|
$
|
|
$
|
|
September 30, 2021
|
December 31, 2020
|
|||||||||||||||
Notional
Amount
|
Fair
Value
|
Notional
Amount
|
Fair
Value
|
|||||||||||||
Included in other liabilities:
|
||||||||||||||||
Cash flow swaps related to state and municipal securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Included in other assets:
|
||||||||||||||||
Cash flow swaps related to state and municipal securities
|
$
|
|
$
|
|
$
|
|
$
|
|
September 30, 2021
|
December 31, 2020
|
|||||||||||||||
Notional
Amount
|
Fair
Value
|
Notional
Amount
|
Fair
Value
|
|||||||||||||
Included in other assets:
|
||||||||||||||||
Forward contracts related to mortgage loans held for sale
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Interest rate lock commitments
|
|
|
|
|
||||||||||||
Total included in other assets
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Included in other liabilities:
|
||||||||||||||||
Forward contracts related to mortgage loans held for sale
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Interest rate lock commitments
|
|
|
|
|
||||||||||||
Total included in other liabilities
|
$
|
|
$
|
|
$
|
|
$
|
|
Three Months Ended
September 30,
|
Nine Months
Ended
September 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Weighted average common shares outstanding - basic
|
|
|
|
|
||||||||||||
Effect of dilutive securities:
|
||||||||||||||||
Stock-based compensation awards
|
|
|
|
|
||||||||||||
Weighted average common shares outstanding - diluted
|
|
|
|
|
||||||||||||
Basic earnings per share
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Diluted earnings per share
|
$
|
|
$
|
|
$
|
|
$
|
|
Three Months Ended September 30, 2021
|
Banking
|
Insurance
|
Consolidated
|
|||||||||
Net interest income
|
$
|
|
$
|
|
$
|
|
||||||
Provision for loan loss
|
|
|
|
|||||||||
Noninterest income
|
|
|
|
|||||||||
Noninterest expense
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Income before income taxes
|
|
|
|
|||||||||
Income tax (expense) benefit
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net income
|
$
|
|
$
|
|
$
|
|
Three Months Ended September 30, 2020
|
Banking
|
Insurance
|
Consolidated
|
|||||||||
Net interest income
|
$
|
|
$
|
|
$
|
|
||||||
Provision for loan loss
|
(
|
)
|
|
(
|
)
|
|||||||
Noninterest income
|
|
|
|
|||||||||
Noninterest expense
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Income before income taxes
|
|
|
|
|||||||||
Income tax (expense) benefit
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net income
|
$
|
|
$
|
|
$
|
|
Nine Months Ended September 30, 2021
|
Banking
|
Insurance
|
Consolidated
|
|||||||||
Net interest income
|
$
|
|
$
|
|
$
|
|
||||||
Provision for loan loss
|
|
|
|
|||||||||
Noninterest income
|
|
|
|
|||||||||
Noninterest expense
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Income before income taxes
|
|
|
|
|||||||||
Income tax (expense) benefit
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net income
|
$
|
|
$
|
|
$
|
|
Nine Months Ended September 30, 2020
|
Banking
|
Insurance
|
Consolidated
|
|||||||||
Net interest income
|
$
|
|
$
|
|
$
|
|
||||||
Provision for loan loss
|
(
|
)
|
|
(
|
)
|
|||||||
Noninterest income
|
|
|
|
|||||||||
Noninterest expense
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Income before income taxes
|
|
|
|
|||||||||
Income tax (expense) benefit
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net income
|
$
|
|
$
|
|
$
|
|
● |
Level 1 Inputs - Unadjusted quoted prices in active markets for
identical assets or liabilities that the reporting entity has the ability to access at the measurement date.
|
● |
Level 2 Inputs - Inputs other than quoted prices included in
Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in
markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or
corroborated by market data by correlation or other means.
|
● |
Level 3 Inputs - Unobservable inputs for determining the fair
values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
September 30, 2021
|
||||||||||||||||
Assets (liabilities) measured at fair value on a recurring basis:
|
||||||||||||||||
Securities available for sale:
|
||||||||||||||||
U.S. government and agencies
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
State and municipal
|
|
|
|
|
||||||||||||
Mortgage-backed securities
|
|
|
|
|
||||||||||||
Collateralized mortgage obligations
|
|
|
|
|
||||||||||||
Asset-backed and other amortizing securities
|
|
|
|
|
||||||||||||
Other securities
|
|
|
|
|
||||||||||||
Loans held for sale (mandatory)
|
|
|
|
|
||||||||||||
Mortgage servicing rights
|
|
|
|
|
||||||||||||
Asset derivatives
|
|
|
|
|
||||||||||||
Liability derivatives
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Assets measured at fair value on a non-recurring basis:
|
||||||||||||||||
Impaired loans
|
|
|
|
|
||||||||||||
Other real estate owned
|
|
|
|
|
||||||||||||
December 31, 2020
|
||||||||||||||||
Assets (liabilities) measured at fair value on a recurring basis:
|
||||||||||||||||
Securities available for sale:
|
||||||||||||||||
U.S. government and agencies
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
State and municipal
|
|
|
|
|
||||||||||||
Mortgage-backed securities
|
|
|
|
|
||||||||||||
Collateralized mortgage obligations
|
|
|
|
|
||||||||||||
Asset-backed and other amortizing securities
|
|
|
|
|
||||||||||||
Other securities
|
|
|
|
|
||||||||||||
Loans held for sale (mandatory)
|
|
|
|
|
||||||||||||
Mortgage servicing rights
|
|
|
|
|
||||||||||||
Asset derivatives
|
|
|
|
|
||||||||||||
Liability derivatives
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Assets measured at fair value on a non-recurring basis:
|
||||||||||||||||
Impaired loans
|
|
|
|
|
||||||||||||
Other real estate owned
|
|
|
|
|
Fair
Value
|
Valuation
Techniques
|
Unobservable
Inputs
|
Range of
Discounts
|
||||||||
September 30, 2021
|
|||||||||||
Non-recurring: |
|||||||||||
Impaired loans
|
$
|
|
Third party appraisals or inspections
|
Collateral discounts and selling costs
|
|
%
|
|||||
Other real estate owned
|
|
Third party appraisals or inspections
|
Collateral discounts and selling costs
|
|
%
|
||||||
Recurring: |
|||||||||||
Mortgage servicing rights
|
|
Discounted cash flows
|
Conditional prepayment rate
|
|
%
|
||||||
Discount rate
|
|
%
|
|||||||||
December 31, 2020
|
|||||||||||
Non-recurring: |
|||||||||||
Impaired loans
|
$
|
|
Third party appraisals or inspections
|
Collateral discounts and selling costs
|
|
%
|
|||||
Other real estate owned
|
|
Third party appraisals or inspections
|
Collateral discounts and selling costs
|
|
%
|
||||||
Recurring: |
|||||||||||
Mortgage servicing rights
|
|
Discounted cash flows
|
Conditional prepayment rate
|
|
%
|
||||||
Discount rate
|
|
%
|
Carrying
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
Fair Value
|
||||||||||||||||
September 30, 2021
|
||||||||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Loans, net
|
|
|
|
|
|
|||||||||||||||
Accrued interest receivable
|
|
|
|
|
|
|||||||||||||||
Bank-owned life insurance
|
|
|
|
|
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Accrued interest payable
|
|
|
|
|
|
|||||||||||||||
Notes payable & other borrowings
|
|
|
|
|
|
|||||||||||||||
Junior subordinated deferrable interest debentures
|
|
|
|
|
|
|||||||||||||||
Subordinated debt securities
|
|
|
|
|
|
Carrying
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
Fair Value
|
||||||||||||||||
December 31, 2020
|
||||||||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Loans, net
|
|
|
|
|
|
|||||||||||||||
Accrued interest receivable
|
|
|
|
|
|
|||||||||||||||
Bank-owned life insurance
|
|
|
|
|
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Short-term borrowings
|
||||||||||||||||||||
Accrued interest payable
|
|
|
|
|
|
|||||||||||||||
Notes payable & other borrowings
|
|
|
|
|
|
|||||||||||||||
Junior subordinated deferrable interest debentures
|
|
|
|
|
|
|||||||||||||||
Subordinated debt securities
|
|
|
|
|
|
● |
the impact, duration and severity of the ongoing novel coronavirus (“COVID-19”) pandemic, the Delta variant (or any other new variant of COVID-19), the response of governmental authorities to the COVID-19
pandemic and our participation in COVID-19-related government programs such as the Paycheck Protection Program (the “PPP”) administered by the Small Business Administration (the “SBA”) and created under the Coronavirus Aid, Relief, and
Economic Security Act (the “CARES Act”);
|
● |
our ability to effectively execute our expansion strategy and manage our growth, including identifying and consummating suitable acquisitions;
|
● |
business and economic conditions, particularly those affecting our market areas, as well as the concentration of our business in such market areas;
|
● |
high concentrations of loans secured by real estate located in our market areas;
|
● |
risks associated with our commercial loan portfolio, including the uncertain economic consequences of the ongoing COVID-19 pandemic or any deterioration in value of the general business assets that secure
such loans;
|
● |
potential changes in the prices, values and sales volumes of commercial and residential real estate securing our real estate loans;
|
● |
risks associated with our agricultural loan portfolio, including the heightened sensitivity to weather conditions, commodity prices, and other factors generally outside the borrowers and our control;
|
● |
risks associated with the sale of crop insurance products, including termination of or substantial changes to the federal crop insurance program;
|
● |
risks related to the significant amount of credit that we have extended to a limited number of borrowers and in a limited geographic area;
|
● |
public funds deposits comprising a relatively high percentage of our deposits;
|
● |
potential impairment on the goodwill we have recorded or may record in connection with business acquisitions;
|
● |
our ability to maintain our reputation;
|
● |
our ability to successfully manage our credit risk and the sufficiency of our allowance for loan losses;
|
● |
our ability to attract, hire and retain qualified management personnel;
|
● |
our dependence on our management team, including our ability to retain executive officers and key employees and their customer and community relationships;
|
● |
interest rate fluctuations, which could have an adverse effect on our profitability;
|
● |
competition from banks, credit unions and other financial services providers;
|
● |
our ability to keep pace with technological change or difficulties we may experience when implementing new technologies;
|
● |
system failures, service denials, cyber-attacks and security breaches;
|
● |
our ability to maintain effective internal control over financial reporting;
|
● |
employee error, fraudulent activity by employees or customers and inaccurate or incomplete information about our customers and counterparties;
|
● |
increased capital requirements imposed by banking regulators, which may require us to raise capital at a time when capital is not available on favorable terms or at all;
|
● |
our ability to maintain adequate liquidity and to raise necessary capital to fund our acquisition strategy and operations or to meet increased minimum regulatory capital levels;
|
● |
costs and effects of litigation, investigations or similar matters to which we may be subject, including any effect on our reputation;
|
● |
natural disasters, severe weather, acts of god, acts of war or terrorism, outbreaks of hostilities, public health outbreaks (such as the ongoing COVID-19 pandemic or any new variant thereof), other
international or domestic calamities, and other matters beyond our control;
|
● |
tariffs and trade barriers;
|
● |
compliance with governmental and regulatory requirements, including the Dodd-Frank Act Wall Street Reform and Consumer Protection Act, the Economic Growth, Regulatory Relief, and Consumer Protection Act
(“EGRRCPA”), and others relating to banking, consumer protection, securities and tax matters; and
|
● |
changes in the laws, rules, regulations, interpretations or policies relating to financial institutions, accounting, tax, trade, monetary and fiscal matters, including the policies of the Board of Governors
of the Federal Reserve System (“Federal Reserve”) and as a result of initiatives of the Biden administration.
|
Three Months Ended September 30,
|
||||||||||||||||||||||||
2021
|
2020
|
|||||||||||||||||||||||
Average
Balance
|
Interest
|
Yield/
Rate
|
Average
Balance
|
Interest
|
Yield/
Rate
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans, excluding PPP(1)
|
$
|
2,365,010
|
$
|
28,947
|
4.86
|
%
|
$
|
2,195,507
|
$
|
29,162
|
5.28
|
%
|
||||||||||||
Loans - PPP
|
86,645
|
1,872
|
8.57
|
212,337
|
1,602
|
3.00
|
||||||||||||||||||
Investment securities – taxable
|
531,620
|
2,309
|
1.72
|
525,301
|
2,613
|
1.98
|
||||||||||||||||||
Investment securities – non-taxable
|
221,026
|
1,468
|
2.64
|
187,400
|
1,343
|
2.85
|
||||||||||||||||||
Other interest-earning assets(2)
|
284,369
|
151
|
0.21
|
168,922
|
105
|
0.25
|
||||||||||||||||||
Total interest-earning assets
|
3,488,670
|
34,747
|
3.95
|
3,289,467
|
34,825
|
4.21
|
||||||||||||||||||
Noninterest-earning assets
|
259,641
|
247,338
|
||||||||||||||||||||||
Total assets
|
$
|
3,748,311
|
$
|
3,536,805
|
||||||||||||||||||||
Liabilities and Shareholders’ Equity:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
NOW, savings and money market deposits
|
$
|
1,820,677
|
$
|
1,005
|
0.22
|
%
|
$
|
1,695,476
|
$
|
1,213
|
0.28
|
%
|
||||||||||||
Time deposits
|
330,161
|
1,025
|
1.23
|
322,535
|
1,304
|
1.61
|
||||||||||||||||||
Short-term borrowings
|
725
|
—
|
0.00
|
12,080
|
3
|
0.10
|
||||||||||||||||||
Notes payable & other longer-term borrowings
|
—
|
—
|
0.00
|
95,870
|
65
|
0.27
|
||||||||||||||||||
Subordinated debt securities
|
75,728
|
1,013
|
5.31
|
26,472
|
403
|
6.06
|
||||||||||||||||||
Junior subordinated deferrable interest debentures
|
46,393
|
217
|
1.86
|
46,393
|
242
|
2.08
|
||||||||||||||||||
Total interest-bearing liabilities
|
$
|
2,273,684
|
$
|
3,260
|
0.57
|
%
|
$
|
2,198,826
|
$
|
3,230
|
0.58
|
%
|
||||||||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
Noninterest-bearing deposits
|
$
|
1,035,910
|
$
|
944,420
|
||||||||||||||||||||
Other liabilities
|
43,171
|
49,008
|
||||||||||||||||||||||
Total noninterest-bearing liabilities
|
1,079,081
|
993,428
|
||||||||||||||||||||||
Shareholders’ equity
|
395,546
|
344,551
|
||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$
|
3,748,311
|
$
|
3,536,805
|
||||||||||||||||||||
Net interest income
|
$
|
31,487
|
$
|
31,595
|
||||||||||||||||||||
Net interest spread
|
3.38
|
%
|
3.63
|
%
|
||||||||||||||||||||
Net interest margin(3)
|
3.58
|
%
|
3.82
|
%
|
(1) |
Average loan balances include nonaccrual loans and loans held for sale.
|
(2) |
Includes income and average balances for interest-earning deposits at other banks, nonmarketable securities, federal funds sold and other miscellaneous interest-earning assets.
|
(3) |
Net interest margin is calculated as the annualized net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||
2021
|
2020
|
|||||||||||||||||||||||
Average
Balance
|
Interest
|
Yield/
Rate
|
Average
Balance
|
Interest
|
Yield/
Rate
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans, excluding PPP(1)
|
$
|
2,246,650
|
$
|
82,314
|
4.90
|
%
|
$
|
2,188,988
|
$
|
89,041
|
5.43
|
%
|
||||||||||||
Loans - PPP
|
141,040
|
7,147
|
6.78
|
127,880
|
2,678
|
2.80
|
||||||||||||||||||
Investment securities – taxable
|
540,380
|
7,118
|
1.76
|
544,650
|
9,285
|
2.28
|
||||||||||||||||||
Investment securities – non-taxable
|
219,242
|
4,414
|
2.69
|
142,158
|
3,037
|
2.85
|
||||||||||||||||||
Other interest-earning assets(2)
|
328,412
|
373
|
0.15
|
164,936
|
963
|
0.78
|
||||||||||||||||||
Total interest-earning assets
|
3,475,724
|
101,366
|
3.90
|
3,168,612
|
105,004
|
4.43
|
||||||||||||||||||
Noninterest-earning assets
|
261,449
|
248,523
|
||||||||||||||||||||||
Total assets
|
$
|
3,737,173
|
$
|
3,417,135
|
||||||||||||||||||||
Liabilities and Shareholders’ Equity:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
NOW, savings and money market deposits
|
$
|
1,834,113
|
$
|
3,259
|
0.24
|
%
|
$
|
1,630,524
|
$
|
5,199
|
0.43
|
%
|
||||||||||||
Time deposits
|
326,862
|
3,114
|
1.27
|
334,189
|
4,361
|
1.74
|
||||||||||||||||||
Short-term borrowings
|
10,725
|
5
|
0.06
|
19,758
|
102
|
0.69
|
||||||||||||||||||
Notes payable & other longer-term borrowings
|
26,188
|
38
|
0.19
|
117,726
|
518
|
0.59
|
||||||||||||||||||
Subordinated debt securities
|
75,682
|
3,044
|
5.38
|
26,472
|
1,210
|
6.11
|
||||||||||||||||||
Junior subordinated deferrable interest debentures
|
46,393
|
661
|
1.90
|
46,393
|
937
|
2.70
|
||||||||||||||||||
Total interest-bearing liabilities
|
$
|
2,319,963
|
$
|
10,121
|
0.58
|
%
|
$
|
2,175,062
|
$
|
12,327
|
0.76
|
%
|
||||||||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
Noninterest-bearing deposits
|
$
|
991,331
|
$
|
870,606
|
||||||||||||||||||||
Other liabilities
|
41,996
|
40,579
|
||||||||||||||||||||||
Total noninterest-bearing liabilities
|
1,033,327
|
911,185
|
||||||||||||||||||||||
Shareholders’ equity
|
383,883
|
330,888
|
||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$
|
3,737,173
|
$
|
3,417,135
|
||||||||||||||||||||
Net interest income
|
$
|
91,245
|
$
|
92,677
|
||||||||||||||||||||
Net interest spread
|
3.32
|
%
|
3.67
|
%
|
||||||||||||||||||||
Net interest margin(3)
|
3.51
|
%
|
3.91
|
%
|
(1) |
Average loan balances include nonaccrual loans and loans held for sale.
|
(2) |
Includes income and average balances for interest-earning deposits at other banks, nonmarketable securities, federal funds sold and other miscellaneous interest-earning assets.
|
(3) |
Net interest margin is calculated as the annualized net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.
|
Three Months Ended September 30,
|
||||||||||||
2021 over 2020
|
||||||||||||
Change due to:
|
Total
|
|||||||||||
Volume
|
Rate
|
Variance
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Interest-earning assets:
|
||||||||||||
Loans, excluding PPP
|
$
|
2,251
|
$
|
(2,466
|
)
|
$
|
(215
|
)
|
||||
Loans - PPP
|
(948
|
)
|
1,218
|
270
|
||||||||
Investment securities – taxable
|
31
|
(335
|
)
|
(304
|
)
|
|||||||
Investment securities – non-taxable
|
241
|
(116
|
)
|
125
|
||||||||
Other interest-earning assets
|
72
|
(26
|
)
|
46
|
||||||||
Total increase (decrease) in interest income
|
1,647
|
(1,725
|
)
|
(78
|
)
|
|||||||
Interest-bearing liabilities:
|
||||||||||||
NOW, Savings, MMDAs
|
90
|
(298
|
)
|
(208
|
)
|
|||||||
Time deposits
|
31
|
(310
|
)
|
(279
|
)
|
|||||||
Short-term borrowings
|
(3
|
)
|
—
|
(3
|
)
|
|||||||
Notes payable & other borrowings
|
(65
|
)
|
—
|
(65
|
)
|
|||||||
Subordinated debt securities
|
750
|
(140
|
)
|
610
|
||||||||
Junior subordinated deferrable interest debentures
|
—
|
(25
|
)
|
(25
|
)
|
|||||||
Total increase (decrease) interest expense:
|
803
|
(773
|
)
|
30
|
||||||||
Increase (decrease) in net interest income
|
$
|
844
|
$
|
(952
|
)
|
$
|
(108
|
)
|
Nine Months Ended September 30,
|
||||||||||||
2021 over 2020
|
||||||||||||
Change due to:
|
Total
|
|||||||||||
Volume
|
Rate
|
Variance
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Interest-earning assets:
|
||||||||||||
Loans, excluding PPP
|
$
|
2,346
|
$
|
(9,073
|
)
|
$
|
(6,727
|
)
|
||||
Loans - PPP
|
276
|
4,193
|
4,469
|
|||||||||
Investment securities – taxable
|
(73
|
)
|
(2,094
|
)
|
(2,167
|
)
|
||||||
Investment securities – non-taxable
|
1,647
|
(270
|
)
|
1,377
|
||||||||
Other interest-earning assets
|
954
|
(1,544
|
)
|
(590
|
)
|
|||||||
Total increase (decrease) in interest income
|
5,150
|
(8,788
|
)
|
(3,638
|
)
|
|||||||
Interest-bearing liabilities:
|
||||||||||||
NOW, Savings, MMDAs
|
649
|
(2,589
|
)
|
(1,940
|
)
|
|||||||
Time deposits
|
(96
|
)
|
(1,151
|
)
|
(1,247
|
)
|
||||||
Short-term borrowings
|
(47
|
)
|
(50
|
)
|
(97
|
)
|
||||||
Notes payable & other borrowings
|
(403
|
)
|
(77
|
)
|
(480
|
)
|
||||||
Subordinated debt securities
|
2,249
|
(415
|
)
|
1,834
|
||||||||
Junior subordinated deferrable interest debentures
|
—
|
(276
|
)
|
(276
|
)
|
|||||||
Total increase (decrease) interest expense:
|
2,352
|
(4,558
|
)
|
(2,206
|
)
|
|||||||
Increase (decrease) in net interest income
|
$
|
2,798
|
$
|
(4,230
|
)
|
$
|
(1,432
|
)
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||||||||||
2021
|
2020
|
Increase
(Decrease)
|
2021
|
2020
|
Increase
(Decrease)
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Noninterest income:
|
||||||||||||||||||||||||
Service charges on deposit accounts
|
$
|
1,851
|
$
|
1,749
|
$
|
102
|
$
|
5,023
|
$
|
5,171
|
$
|
(148
|
)
|
|||||||||||
Income from insurance activities
|
3,794
|
3,303
|
491
|
6,146
|
5,484
|
662
|
||||||||||||||||||
Bank card services and interchange fees
|
3,045
|
2,608
|
437
|
8,760
|
7,190
|
1,570
|
||||||||||||||||||
Mortgage banking activities
|
14,802
|
21,409
|
(6,607
|
)
|
47,329
|
48,117
|
(788
|
)
|
||||||||||||||||
Investment commissions
|
430
|
441
|
(11
|
)
|
1,390
|
1,261
|
129
|
|||||||||||||||||
Fiduciary income
|
556
|
781
|
(225
|
)
|
2,234
|
2,386
|
(152
|
)
|
||||||||||||||||
Gain on sale of securities
|
—
|
—
|
—
|
—
|
2,318
|
(2,318
|
)
|
|||||||||||||||||
Other income and fees(1)
|
1,313
|
1,369
|
(56
|
)
|
3,659
|
3,504
|
155
|
|||||||||||||||||
Total noninterest income
|
$
|
25,791
|
$
|
31,660
|
$
|
(5,869
|
)
|
$
|
74,541
|
$
|
75,431
|
$
|
(890
|
)
|
(1) |
Other income and fees includes the increase in the cash surrender value of life insurance, safe deposit box rental, check printing, collections, wire transfer and other miscellaneous services.
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||||||||||
2021
|
2020
|
Increase
(Decrease)
|
2021
|
2020
|
Increase
(Decrease)
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Noninterest expense:
|
||||||||||||||||||||||||
Salaries and employee benefits
|
$
|
24,116
|
$
|
23,672
|
$
|
444
|
$
|
71,811
|
$
|
66,103
|
$
|
5,708
|
||||||||||||
Occupancy expense, net
|
3,896
|
3,710
|
186
|
10,960
|
10,896
|
64
|
||||||||||||||||||
Professional services
|
1,388
|
1,177
|
211
|
4,483
|
4,710
|
(227
|
)
|
|||||||||||||||||
Marketing and development
|
777
|
615
|
162
|
2,157
|
2,189
|
(32
|
)
|
|||||||||||||||||
IT and data services
|
1,068
|
843
|
225
|
3,029
|
2,769
|
260
|
||||||||||||||||||
Bankcard expenses
|
1,339
|
1,095
|
244
|
3,640
|
3,164
|
476
|
||||||||||||||||||
Appraisal expenses
|
790
|
744
|
46
|
2,350
|
1,837
|
513
|
||||||||||||||||||
Other expenses(1)
|
4,689
|
4,137
|
552
|
13,468
|
13,543
|
(75
|
)
|
|||||||||||||||||
Total noninterest expense
|
$
|
38,063
|
$
|
35,993
|
$
|
2,070
|
$
|
111,898
|
$
|
105,211
|
$
|
6,687
|
(1) |
Other expenses include items such as telephone expenses, postage, courier fees, directors’ fees, and insurance.
|
September 30, 2021
|
December 31, 2020
|
|||||||||||||||
Amount
|
% of Total
|
Amount
|
% of Total
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Commercial real estate
|
$
|
746,775
|
30.8
|
%
|
$
|
663,344
|
29.9
|
%
|
||||||||
Commercial – specialized
|
390,394
|
16.1
|
311,686
|
14.0
|
||||||||||||
Commercial – general
|
452,776
|
18.6
|
518,309
|
23.3
|
||||||||||||
Consumer:
|
||||||||||||||||
1-4 family residential
|
387,167
|
15.9
|
360,315
|
16.2
|
||||||||||||
Auto loans
|
239,397
|
9.9
|
205,840
|
9.3
|
||||||||||||
Other consumer
|
69,079
|
2.8
|
67,595
|
3.0
|
||||||||||||
Construction
|
143,453
|
5.9
|
94,494
|
4.3
|
||||||||||||
Gross loans
|
2,429,041
|
100.0
|
%
|
2,221,583
|
100.0
|
%
|
||||||||||
Allowance for loan losses
|
(42,768
|
)
|
(45,553
|
)
|
||||||||||||
Net loans
|
$
|
2,386,273
|
$
|
2,176,030
|
Beginning
Balance
|
Charge-offs
|
Recoveries
|
Provision
|
Ending
Balance
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Three Months Ended September 30, 2021
|
||||||||||||||||||||
Commercial real estate
|
$
|
17,288
|
$
|
—
|
$
|
—
|
$
|
960
|
$
|
18,248
|
||||||||||
Commercial – specialized
|
4,823
|
(16
|
)
|
20
|
(596
|
)
|
4,231
|
|||||||||||||
Commercial – general
|
8,948
|
(2
|
)
|
63
|
(838
|
)
|
8,171
|
|||||||||||||
Consumer:
|
||||||||||||||||||||
1-4 family residential
|
5,064
|
—
|
2
|
135
|
5,201
|
|||||||||||||||
Auto loans
|
3,815
|
(111
|
)
|
20
|
79
|
3,803
|
||||||||||||||
Other consumer
|
1,434
|
(213
|
)
|
42
|
139
|
1,402
|
||||||||||||||
Construction
|
1,591
|
—
|
—
|
121
|
1,712
|
|||||||||||||||
Total
|
$
|
42,963
|
$
|
(342
|
)
|
$
|
147
|
$
|
—
|
$
|
42,768
|
Beginning
Balance
|
Charge-offs
|
Recoveries
|
Provision
|
Ending
Balance
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Three Months Ended September 30, 2020
|
||||||||||||||||||||
Commercial real estate
|
$
|
15,156
|
$
|
—
|
$
|
23
|
$
|
3,085
|
$
|
18,264
|
||||||||||
Commercial – specialized
|
6,614
|
(109
|
)
|
19
|
(220
|
)
|
6,304
|
|||||||||||||
Commercial – general
|
9,293
|
(372
|
)
|
91
|
977
|
9,989
|
||||||||||||||
Consumer:
|
||||||||||||||||||||
1-4 family residential
|
2,926
|
(56
|
)
|
126
|
1,688
|
4,684
|
||||||||||||||
Auto loans
|
3,939
|
(212
|
)
|
32
|
474
|
4,233
|
||||||||||||||
Other consumer
|
1,640
|
(262
|
)
|
99
|
250
|
1,727
|
||||||||||||||
Construction
|
1,067
|
—
|
—
|
(192
|
)
|
875
|
||||||||||||||
Total
|
$
|
40,635
|
$
|
(1,011
|
)
|
$
|
390
|
$
|
6,062
|
$
|
46,076
|
Beginning
Balance
|
Charge-offs
|
Recoveries
|
Provision
|
Ending
Balance
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Nine Months Ended September 30, 2021
|
||||||||||||||||||||
Commercial real estate
|
$
|
18,962
|
$
|
—
|
$
|
—
|
$
|
(714
|
)
|
$
|
18,248
|
|||||||||
Commercial – specialized
|
5,760
|
(21
|
)
|
119
|
(1,627
|
)
|
4,231
|
|||||||||||||
Commercial – general
|
9,227
|
(379
|
)
|
193
|
(870
|
)
|
8,171
|
|||||||||||||
Consumer:
|
||||||||||||||||||||
1-4 family residential
|
4,646
|
(52
|
)
|
5
|
602
|
5,201
|
||||||||||||||
Auto loans
|
4,226
|
(438
|
)
|
103
|
(88
|
)
|
3,803
|
|||||||||||||
Other consumer
|
1,671
|
(590
|
)
|
189
|
132
|
1,402
|
||||||||||||||
Construction
|
1,061
|
—
|
4
|
647
|
1,712
|
|||||||||||||||
Total
|
$
|
45,553
|
$
|
(1,480
|
)
|
$
|
613
|
$
|
(1,918
|
)
|
$
|
42,768
|
Beginning
Balance
|
Charge-offs
|
Recoveries
|
Provision
|
Ending
Balance
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Nine Months Ended September 30, 2020
|
||||||||||||||||||||
Commercial real estate
|
$
|
5,049
|
$
|
—
|
$
|
238
|
$
|
12,977
|
$
|
18,264
|
||||||||||
Commercial – specialized
|
2,287
|
(959
|
)
|
106
|
4,870
|
6,304
|
||||||||||||||
Commercial – general
|
9,609
|
(1,752
|
)
|
180
|
1,952
|
9,989
|
||||||||||||||
Consumer:
|
||||||||||||||||||||
1-4 family residential
|
2,093
|
(56
|
)
|
127
|
2,520
|
4,684
|
||||||||||||||
Auto loans
|
3,385
|
(916
|
)
|
140
|
1,624
|
4,233
|
||||||||||||||
Other consumer
|
1,341
|
(1,011
|
)
|
352
|
1,045
|
1,727
|
||||||||||||||
Construction
|
433
|
—
|
1
|
441
|
875
|
|||||||||||||||
Total
|
$
|
24,197
|
$
|
(4,694
|
)
|
$
|
1,144
|
$
|
25,429
|
$
|
46,076
|
September 30, 2021
|
December 31, 2020
|
|||||||||||||||
Amount
|
% of Total
|
Amount
|
% of Total
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Commercial real estate
|
$
|
18,248
|
42.7
|
%
|
$
|
18,962
|
41.6
|
%
|
||||||||
Commercial – specialized
|
4,231
|
9.9
|
5,760
|
12.6
|
||||||||||||
Commercial – general
|
8,171
|
19.1
|
9,227
|
20.3
|
||||||||||||
Consumer:
|
||||||||||||||||
1-4 family residential
|
5,201
|
12.2
|
4,646
|
10.2
|
||||||||||||
Auto loans
|
3,803
|
8.9
|
4,226
|
9.3
|
||||||||||||
Other consumer
|
1,402
|
3.2
|
1,671
|
3.7
|
||||||||||||
Construction
|
1,712
|
4.0
|
1,061
|
2.3
|
||||||||||||
Total allowance for loan losses
|
$
|
42,768
|
100.0
|
%
|
$
|
45,553
|
100.0
|
%
|
September 30,
2021
|
December 31,
2020
|
|||||||
(Dollars in thousands)
|
||||||||
Nonaccrual loans:
|
||||||||
Commercial real estate
|
$
|
1,767
|
$
|
6,311
|
||||
Commercial – specialized
|
293
|
272
|
||||||
Commercial – general
|
5,564
|
5,489
|
||||||
Consumer:
|
||||||||
1-4 family residential
|
2,313
|
1,595
|
||||||
Auto loans
|
—
|
—
|
||||||
Other consumer
|
46
|
51
|
||||||
Construction
|
166
|
—
|
||||||
Total nonaccrual loans
|
10,149
|
13,718
|
||||||
Past due loans 90 days or more and still accruing
|
747
|
1,246
|
||||||
Total nonperforming loans
|
10,896
|
14,964
|
||||||
Other real estate owned
|
1,081
|
1,353
|
||||||
Total nonperforming assets
|
$
|
11,977
|
$
|
16,317
|
||||
Restructured loans - nonaccrual(1)
|
$
|
299
|
$
|
88
|
||||
Restructured loans - accruing
|
$
|
564
|
$
|
1,687
|
(1) |
Restructured loans, nonaccrual, are included in nonaccrual loans which are a component of nonperforming loans.
|
• |
Restaurant and retail owner-occupied loans totaled $101.6 million, or 4.2% of total loans. The average loan size is $369 thousand. There was $1.9 million in classified loans, $3 thousand in loans past
due 30 days or more, and $1.2 million in nonaccrual loans. The related allowance for loan losses to total restaurant and retail owner-occupied loans is 3.07%. As of September 30, 2021, none of these loans were active modifications as a result of the COVID-19 pandemic.
|
• |
Hospitality and assisted living center loans totaled $129.4 million, or 5.3% of total loans. The average loan size is $2.8 million. There was $48.2 million in classified loans, no loans past due 30 days
or more, and $1.1 million in nonaccrual loans. The related allowance for loan losses to total hospitality and assisted living center loans is 7.55%. As of September 30, 2021, approximately 12% of these loans were active modifications as a result of the COVID-19 pandemic. All of these modifications were interest-only periods of 12 months or a combination of a 90-day deferral and
nine months of interest only. The Company expects that these remaining modified loans will return to full payment status at the end of their respective modification period.
|
September 30, 2021
|
December 31, 2020
|
|||||||||||||||||||||||
Amortized
Cost
|
Fair
Value
|
Unrealized
Gain/(Loss)
|
Amortized
Cost
|
Fair
Value
|
Unrealized
Gain/(Loss)
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Available-for-sale
|
||||||||||||||||||||||||
U.S. government and agencies
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
4,750
|
$
|
4,753
|
$
|
3
|
||||||||||||
State and municipal
|
266,306
|
275,029
|
8,723
|
261,023
|
272,607
|
11,584
|
||||||||||||||||||
Mortgage-backed securities
|
326,022
|
328,858
|
2,836
|
359,542
|
373,362
|
13,820
|
||||||||||||||||||
Collateralized mortgage obligations
|
106,864
|
106,439
|
(425
|
)
|
107,175
|
106,715
|
(460
|
)
|
||||||||||||||||
Asset-backed and other amortizing securities
|
28,117
|
29,446
|
1,329
|
31,509
|
33,572
|
2,063
|
||||||||||||||||||
Other securities
|
12,000
|
12,790
|
790
|
12,000
|
12,078
|
78
|
||||||||||||||||||
Total available-for-sale
|
$
|
739,309
|
$
|
752,562
|
$
|
13,253
|
$
|
775,999
|
$
|
803,087
|
$
|
27,088
|
As of September 30, 2021
|
||||||||||||||||||||||||||||||||
Due in One
Year or Less
|
Due after One Year
Through Five Years
|
Due after Five Year
Through Ten Years
|
Due after
Ten Years
|
|||||||||||||||||||||||||||||
Amortized
Cost
|
Weighted
Average
Yield
|
Amortized
Cost
|
Weighted
Average
Yield
|
Amortized
Cost
|
Weighted
Average
Yield
|
Amortized
Cost
|
Weighted
Average
Yield
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||
Available-for-sale
|
||||||||||||||||||||||||||||||||
U.S. government and agencies
|
$
|
—
|
—
|
%
|
$
|
—
|
—
|
%
|
$
|
—
|
—
|
%
|
$
|
—
|
—
|
%
|
||||||||||||||||
State and municipal
|
1,615
|
2.58
|
6,864
|
2.63
|
11,918
|
2.21
|
245,909
|
2.24
|
||||||||||||||||||||||||
Mortgage-backed securities
|
—
|
—
|
1,055
|
1.56
|
60,913
|
2.16
|
264,054
|
1.91
|
||||||||||||||||||||||||
Collateralized mortgage obligations
|
—
|
—
|
—
|
—
|
106,864
|
0.56
|
—
|
—
|
||||||||||||||||||||||||
Asset-backed and other amortizing securities
|
—
|
—
|
—
|
—
|
2,439
|
2.90
|
25,678
|
2.81
|
||||||||||||||||||||||||
Other securities
|
—
|
—
|
—
|
—
|
12,000
|
4.47
|
—
|
—
|
||||||||||||||||||||||||
Total available-for-sale
|
$
|
1,615
|
1.92
|
%
|
$
|
7,919
|
2.48
|
%
|
$
|
194,134
|
1.43
|
%
|
$
|
535,641
|
2.10
|
%
|
As of December 31, 2020
|
||||||||||||||||||||||||||||||||
Due in One
Year or Less
|
Due after One Year
Through Five Years
|
Due after Five Years
Through Ten Years
|
Due after
Ten Years
|
|||||||||||||||||||||||||||||
Amortized
Cost
|
Weighted
Average
Yield
|
Amortized
Cost
|
Weighted
Average
Yield
|
Amortized
Cost
|
Weighted
Average
Yield
|
Amortized
Cost
|
Weighted
Average
Yield
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||
Available-for-sale
|
||||||||||||||||||||||||||||||||
U.S. government and agencies
|
$
|
4,750
|
2.75
|
%
|
$
|
—
|
—
|
$
|
—
|
—
|
%
|
$
|
—
|
—
|
%
|
|||||||||||||||||
State and municipal
|
1,982
|
11.60
|
3,397
|
2.70
|
%
|
14,079
|
2.11
|
241,565
|
2.28
|
|||||||||||||||||||||||
Mortgage-backed securities
|
—
|
—
|
577
|
1.50
|
%
|
12,723
|
1.94
|
346,242
|
1.95
|
|||||||||||||||||||||||
Collateralized mortgage obligations
|
—
|
—
|
—
|
—
|
—
|
—
|
107,175
|
0.62
|
||||||||||||||||||||||||
Asset-backed and other amortizing securities
|
—
|
—
|
—
|
—
|
820
|
2.89
|
30,689
|
2.82
|
||||||||||||||||||||||||
Total available-for-sale
|
$
|
6,732
|
5.35
|
%
|
$
|
3,974
|
2.52
|
%
|
$
|
39,622
|
2.78
|
%
|
$
|
725,671
|
1.90
|
%
|
September 30, 2021
|
December 31, 2020
|
|||||||||||||||
Amount
|
% of Total
|
Amount
|
% of Total
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Noninterest-bearing deposits
|
$
|
1,054,264
|
32.8
|
%
|
$
|
917,322
|
30.9
|
%
|
||||||||
NOW and other transaction accounts
|
359,177
|
11.2
|
332,829
|
11.2
|
||||||||||||
Money market and other savings
|
1,464,376
|
45.6
|
1,398,699
|
47.0
|
||||||||||||
Time deposits
|
334,428
|
10.4
|
325,501
|
10.9
|
||||||||||||
Total deposits
|
$
|
3,212,245
|
100.0
|
%
|
$
|
2,974,351
|
100.0
|
%
|
(Dollars in thousands)
|
September 30,
2021
|
|||
Time deposits $100,000 or greater with remaining maturity of:
|
||||
Three months or less
|
$
|
38,767
|
||
After three months through six months
|
35,931
|
|||
After six months through twelve months
|
63,696
|
|||
After twelve months
|
118,753
|
|||
Total
|
$
|
257,147
|
As of/For the
Three Months Ended
September 30,
|
As of/For the
Nine Months Ended
September 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Amount outstanding at end of the period
|
$
|
—
|
$
|
75,000
|
$
|
—
|
$
|
75,000
|
||||||||
Weighted average interest rate at end of the period
|
0.00
|
%
|
0.21
|
%
|
0.00
|
%
|
0.21
|
%
|
||||||||
Maximum month-end balance during the period
|
$
|
—
|
$
|
75,000
|
$
|
75,000
|
$
|
170,000
|
||||||||
Average balance outstanding during the period
|
$
|
—
|
$
|
95,870
|
$
|
26,188
|
$
|
116,517
|
||||||||
Weighted average interest rate during the period
|
0.00
|
%
|
0.27
|
%
|
0.19
|
%
|
0.59
|
%
|
As of/For the
Three Months Ended
September 30,
|
As of/For the
Nine Months Ended
September 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Amount outstanding at end of the period
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||
Weighted average interest rate at end of the period
|
0.00
|
%
|
0.00
|
%
|
0.00
|
%
|
0.00
|
%
|
||||||||
Maximum month-end balance during the period
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
30,000
|
||||||||
Average balance outstanding during the period
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
1,209
|
||||||||
Weighted average interest rate during the period
|
0.00
|
%
|
0.00
|
%
|
0.00
|
%
|
0.29
|
%
|
Name of Trust
|
Issue Date
|
Amount of
Trust Preferred
Securities
|
Amount of
Debentures
|
Stated
Maturity Date of
Trust Preferred
Securities and
Debentures(1)
|
Interest Rate of
Trust Preferred
Securities and
Debentures(2)(3)
|
||||||||||
(Dollars in thousands)
|
|||||||||||||||
South Plains Financial Capital Trust III
|
2004
|
$
|
10,000
|
$
|
10,310
|
2034
|
3-mo. LIBOR + 265 bps; 2.82%
|
||||||||
South Plains Financial Capital Trust IV
|
2005
|
20,000
|
20,619
|
2035
|
3-mo. LIBOR + 139 bps; 1.51%
|
||||||||||
South Plains Financial Capital Trust V
|
2007
|
15,000
|
15,464
|
2037
|
3-mo. LIBOR + 150 bps; 1.62%
|
||||||||||
Total
|
$
|
45,000
|
$
|
46,393
|
(1) |
May be redeemed at the Company’s option.
|
(2) |
Interest payable quarterly with principal due at maturity.
|
(3) |
Rate as of last reset date, prior to September 30, 2021.
|
September 30, 2021
|
December 31, 2020
|
|||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
South Plains Financial, Inc.:
|
||||||||||||||||
Total capital (to risk-weighted assets)
|
$
|
514,327
|
18.19
|
%
|
$
|
473,425
|
19.08
|
%
|
||||||||
Tier 1 capital (to risk-weighted assets)
|
403,159
|
14.26
|
366,639
|
14.78
|
||||||||||||
CET1 capital (to risk-weighted assets)
|
358,159
|
12.67
|
321,639
|
12.96
|
||||||||||||
Tier 1 capital (to average assets)
|
403,159
|
10.83
|
366,639
|
10.24
|
||||||||||||
City Bank:
|
||||||||||||||||
Total capital (to risk-weighted assets)
|
$
|
421,458
|
14.91
|
%
|
$
|
404,138
|
16.29
|
%
|
||||||||
Tier 1 capital (to risk-weighted assets)
|
386,026
|
13.65
|
372,947
|
15.03
|
||||||||||||
CET1 capital (to risk-weighted assets)
|
386,026
|
13.65
|
372,947
|
15.03
|
||||||||||||
Tier 1 capital (to average assets)
|
386,026
|
10.38
|
372,947
|
10.42
|
September 30,
2021
|
December 31,
2020
|
|||||||
(Dollars in thousands)
|
||||||||
Commitments to grant loans and unfunded commitments under lines of credit
|
$
|
547,738
|
$
|
417,798
|
||||
Standby letters of credit
|
12,420
|
10,481
|
||||||
Total
|
$
|
560,158
|
$
|
428,279
|
September 30,
2021
|
December 31,
2020
|
||||||||
Change in Interest Rates (Basis Points)
|
Percent Change in
Net Interest Income
|
Percent Change in
Net Interest Income
|
|||||||
+300
|
5.50
|
%
|
5.33
|
%
|
|||||
+200
|
3.58
|
%
|
2.90
|
%
|
|||||
+100
|
1.57
|
%
|
1.06
|
%
|
|||||
-100
|
(0.91
|
)%
|
(1.24
|
)%
|
Item 3. |
Quantitative and Qualitative Disclosure about Market Risk
|
Item 1. |
Legal Proceedings
|
Item 1A. |
Risk Factors
|
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds
|
Total Shares
Repurchased
|
Average Price
Paid Per Share
|
Total Dollar Amount
Purchased Pursuant to
Publicly-Announced Plan
|
Maximum Dollar Amount
Remaining Available for
Repurchase Pursuant to
Publicly-Announced Plan
|
|||||||||||||
July 2021
|
46,140
|
$
|
23.28
|
$
|
1,074,143
|
$
|
6,958,288
|
|||||||||
August 2021
|
83,663
|
23.15
|
1,936,597
|
5,021,691
|
||||||||||||
September 2021
|
60,501
|
23.02
|
1,392,539
|
3,629,152
|
||||||||||||
Total
|
190,304
|
Item 3. |
Defaults upon Senior Securities
|
Item 4. |
Mine Safety Disclosures
|
Item 5. |
Other Information
|
Item 6. |
Exhibits
|
Exhibit
Number
|
Description
|
|
Amended and Restated Certificate of Formation of South Plains Financial, Inc. (incorporated by reference to Exhibit 3.1 to the Company’s Form S-1 filed with the SEC on April 12, 2019) (File No. 333-230851).
|
||
Amended and Restated Bylaws of South Plains Financial, Inc. (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the SEC on November 1, 2021) (File No. 001-38895).
|
||
Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
||
Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
||
Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
||
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
||
101*
|
The following material from South Plains Financial, Inc.’s Form 10-Q for the quarter ended September 30, 2021, formatted in XBRL (eXtensible Business Reporting Language), filed herewith: (i) Consolidated
Balance Sheets, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Statements of Changes in Stockholders’ Equity, (iv) Consolidated Statements of Cash Flows, and (v) Notes to Unaudited Consolidated Financial
Statements.
|
* |
Filed with this Form 10-Q
|
** |
Furnished with this Form 10-Q
|
South Plains Financial, Inc.
|
|||
Date:
|
November 4, 2021
|
By:
|
/s/ Curtis C. Griffith
|
Curtis C. Griffith
|
|||
Chairman and Chief Executive Officer
|
|||
Date:
|
November 4, 2021
|
By:
|
/s/ Steven B. Crockett
|
Steven B. Crockett
|
|||
Chief Financial Officer and Treasurer
|