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 |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
(Address of principal executive offices) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
Not Applicable |
Not Applicable |
Not Applicable |
Large Accelerated Filer |
☐ |
Accelerated Filer |
☐ | |||
☒ |
Smaller Reporting Company |
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Emerging Growth Company |
PART I - FINANCIAL INFORMATION |
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PAGE |
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Item 1 - |
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1 |
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2 |
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3 |
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4 |
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6 |
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7 |
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Item 2 - |
41 |
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Item 3 - |
51 |
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Item 4 - |
51 |
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PART II - OTHER INFORMATION |
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Item 1 - |
51 |
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Item 1A - |
52 |
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Item 2 - |
52 |
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Item 3 - |
52 |
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Item 4 - |
52 |
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Item 5 - |
52 |
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Item 6 - |
53 |
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54 |
June 30, 2021 |
December 31, 2020 |
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(In Thousands, except share data) |
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ASSETS |
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Noninterest-bearing cash equivalents |
$ | $ | ||||||
Interest-bearing deposits with other institutions |
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Cash and cash equivalents |
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Securities available for sale, at fair value |
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Loans receivable, net of allowance for loan losses of $ at June 30 , 2021, and $December 31, 2020 |
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Investments in restricted bank stock |
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Premises and equipment, net |
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Right-to-Use Premises |
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Bank-owned life insurance |
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Goodwill and other intangible assets |
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Deferred tax asset |
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Accrued interest receivable and o t her assets |
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TOTAL ASSETS |
$ |
$ |
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LIABILITIES |
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Deposits: |
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Demand, noninterest bearing |
$ | $ | ||||||
Interest bearing |
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Total deposits |
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Short-Term Borrowings |
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Other Borrowings |
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Subordinated Debt |
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Operating Lease Liabilities |
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Accrued interest payable and other liabilities |
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TOTAL LIABILITIES |
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SHAREHOLDERS’ EQUITY |
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Common stock ($ June 30 , 2021 and December 31, 2020) |
||||||||
Surplus |
||||||||
Accumulated deficit |
( |
) | ( |
) | ||||
Accumulated other comprehensive income |
||||||||
TOTAL SHAREHOLDERS’ EQUITY |
||||||||
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
$ |
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Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
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(In Thousands, except per share data) |
||||||||||||||||
INTEREST AND DIVIDEND INCOME |
||||||||||||||||
Loans receivable, including fees |
$ |
$ |
$ |
$ |
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Other |
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Total interest and dividend income |
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INTEREST EXPENSE |
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Deposits |
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Short-term Borrowings |
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— |
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Other Borrowings |
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Subordinated Debt |
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— |
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— |
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Total interest expense |
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NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES |
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Provision for loan losses |
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES |
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NONINTEREST INCOME |
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Service charges on deposit accounts |
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Bank-owned life insurance |
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Other |
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Total noninterest income |
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NONINTEREST EXPENSE |
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Salaries and employee benefits |
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Occupancy |
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Equipment and data processing |
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Professional fees |
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FDIC insurance |
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Bank Shares Tax |
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Advertising |
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Merger Related Expenses |
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Other |
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Total noninterest expense |
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Income (Loss) before income tax (benefit) expense |
( |
) | ||||||||||||||
Income tax (benefit) expense |
( |
) |
||||||||||||||
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NET INCOME (LOSS) |
$ |
$ |
$ |
$ |
( |
) | ||||||||||
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EARNINGS (LOSS) PER SHARE, BASIC |
$ |
$ |
$ |
$ |
( |
) | ||||||||||
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EARNINGS (LOSS) PER SHARE, DILUTED |
$ |
$ |
$ |
$ |
( |
) | ||||||||||
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|||||||||
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING, |
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BASIC |
||||||||||||||||
DILUTED |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
(In Thousands) |
||||||||||||||||
Net income (loss) |
$ |
$ |
$ |
$ |
( |
) | ||||||||||
Components of other comprehensive income (loss): |
||||||||||||||||
Unrealized holding gain (loss) on available-for-sale securities |
( |
) |
( |
) |
||||||||||||
Tax effect |
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Total other comprehensive income (loss) |
( |
) | ( |
) | ||||||||||||
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|||||||||
Total comprehensive income (loss) |
$ |
$ |
$ |
$ |
( |
) | ||||||||||
|
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|
|
|
|
|
|
(In Thousands, except share data) |
Common Stock Shares |
Common Stock Amount |
Additional Paid-in-Capital |
Accumulated Deficit |
Accumulated Other Comprehensive Income (Loss) |
Total |
||||||||||||||||||
Balance, March 31, 2021 |
$ |
$ |
$ |
( |
) |
$ |
$ |
|||||||||||||||||
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|
|||||||||||||
Net income |
— |
— |
— |
— |
||||||||||||||||||||
Stock-based compensation |
— |
— |
— |
— |
||||||||||||||||||||
Other comprehensive loss |
— |
— |
— |
— |
( |
) |
( |
) | ||||||||||||||||
|
|
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|
|
|
|
|
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|
|||||||||||||
Balance, June 30, 2021 |
$ |
$ |
$ |
( |
) |
$ |
$ |
|||||||||||||||||
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|
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|
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|
|
|
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|
|||||||||||||
(In Thousands, except share data) |
Common Stock Shares |
Common Stock Amount |
Additional Paid-in-Capital |
Accumulated Deficit |
Accumulated Other Comprehensive Income (Loss) |
Total |
||||||||||||||||||
Balance, March 31, 2020 |
$ |
$ |
$ |
( |
) |
$ |
$ |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
— |
— |
— |
— |
||||||||||||||||||||
Stock-based compensation |
— |
— |
— |
— |
||||||||||||||||||||
Other comprehensive income |
— |
— |
— |
— |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance, June 30, 2020 |
$ |
$ |
$ |
( |
) |
$ |
$ |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands, except share data) |
Common Stock Shares |
Common Stock Amount |
Additional Paid-in-Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Total |
||||||||||||||||||
Balance, December 31, 2020 |
$ |
$ |
$ |
( |
) |
$ |
$ |
|||||||||||||||||
Proceeds from exercise of stock options |
— |
— |
— |
|||||||||||||||||||||
Net income |
— |
— |
— |
— |
||||||||||||||||||||
Stock-based compensation |
— |
— |
— |
— |
||||||||||||||||||||
Other comprehensive loss |
— |
— |
— |
— |
( |
) |
( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance, June 30, 2021 |
$ |
$ |
$ |
( |
) |
$ |
$ |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
(In Thousands, except share data) |
Common Stock Shares |
Common Stock Amount |
Additional Paid-in-Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Total |
||||||||||||||||||
Balance, December 31, 2019 |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
|||||||||||||||
Proceeds from issuance of common stock |
— |
— |
— |
— |
— |
— |
||||||||||||||||||
Net loss |
— |
— |
— |
( |
) |
— |
( |
) | ||||||||||||||||
Stock-based compensation |
— |
— |
— |
— |
||||||||||||||||||||
Other comprehensive income |
— |
— |
— |
— |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance, June 30, 2020 |
$ |
$ |
$ |
( |
) |
$ |
$ |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended June 30, |
||||||||
(In Thousands) |
2021 |
2020 |
||||||
OPERATING ACTIVITIES |
Unaudited |
|||||||
Net income (loss) |
$ |
$ |
( |
) | ||||
Adjustments to reconcile net income to net cash used for operating activities: |
||||||||
Provision for loan losses |
||||||||
Depreciation |
||||||||
Amortization of intangible assets |
||||||||
Amortization of premiums and discounts on investment securities, net |
||||||||
Share-based compensation |
||||||||
Amortization of premiums on purchased loans |
||||||||
Bank-owned life insurance income |
( |
) |
( |
) | ||||
Deferred tax benefit |
( |
) |
||||||
Change in accrued interest receivable and other assets |
( |
) |
( |
) | ||||
Change in accrued interest payable and other liabilities |
( |
) |
||||||
|
|
|
|
|||||
Net cash used for operating activities |
( |
) |
( |
) | ||||
|
|
|
|
|||||
INVESTING ACTIVITIES |
||||||||
Investment securities available for sale: |
||||||||
Proceeds from calls and maturities |
||||||||
Proceeds from principal repayments |
||||||||
Purchases |
( |
) | ||||||
Purchase of restricted investment in bank stocks |
( |
) |
( |
) | ||||
Redemption of restricted investment in bank stocks |
||||||||
Increase in loans, net |
( |
) |
( |
) | ||||
Purchase of premises and equipment |
( |
) |
( |
) | ||||
|
|
|
|
|||||
Net cash used for investing activities |
( |
) |
( |
) | ||||
|
|
|
|
|||||
FINANCING ACTIVITIES |
||||||||
Increase in deposits, net |
||||||||
Change in Short-term borrowings, net |
( |
) |
( |
) | ||||
Proceeds from Long-term borrowings |
||||||||
Repayments of Long-term borrowings |
( |
) |
||||||
Proceeds from exercise of stock options |
||||||||
|
|
|
|
|||||
Net cash provided by financing activities |
||||||||
|
|
|
|
|||||
Increase in cash and cash equivalents |
||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
||||||||
|
|
|
|
|||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ |
$ |
||||||
|
|
|
|
|||||
SUPPLEMENTAL CASH FLOW DISCLOSURES |
||||||||
Cash paid during the period for: |
||||||||
Interest |
$ |
$ |
||||||
Income taxes |
$ |
$ |
||||||
Non-Cash activities : |
||||||||
Right of Use asset |
$ |
$ |
||||||
Operating lease liability |
$ |
$ |
1. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
1. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
1. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
1. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
1. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
1. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
1. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
1. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
(In Thousands, except share and per share data) |
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Net income |
$ |
$ |
$ |
$ |
( |
) | ||||||||||
Basic weighted average common shares outstanding |
||||||||||||||||
Net effect of dilutive stock options and warrants |
— |
|||||||||||||||
|
|
|
|
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|
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|
|||||||||
Diluted weighted average common shares outstanding |
||||||||||||||||
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|
|
|
|
|
|||||||||
Net income per common share: |
||||||||||||||||
Basic |
$ |
$ |
$ |
$ |
( |
) | ||||||||||
Diluted |
$ |
$ |
$ |
$ |
( |
) |
Six Months Ended June 30, 2020 |
||||
Warrants |
$ | |||
Share-based compensation awards |
||||
|
|
|||
Total anti-dilutive securities |
$ |
1. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. |
INVESTMENT SECURITIES |
June 30, 2021 |
||||||||||||||||
(In Thousands) |
Amortized Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value |
||||||||||||
U.S. treasury securities |
$ |
$ |
$ |
$ |
||||||||||||
Mortgage backed securities, residential |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total available-for-sale |
$ |
$ |
$ |
$ |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
December 31, 2020 |
||||||||||||||||
(In Thousands) |
Amortized Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value |
||||||||||||
Available for Sale: |
||||||||||||||||
U.S. treasury securities |
$ |
$ |
$ |
( |
) |
$ |
||||||||||
Mortgage backed securities, residential |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total available-for-sale |
$ |
$ |
$ |
( |
) |
$ |
||||||||||
|
|
|
|
|
|
|
|
(In Thousands) |
June 30, 2021 |
|||||||
Amortized Cost |
Fair Value |
|||||||
Available for Sale: |
||||||||
1 year or less |
$ | $ | ||||||
Mortgage-backed securities, residential |
||||||||
|
|
|
|
|||||
$ |
$ |
|||||||
|
|
|
|
|||||
(In Thousands) |
December 31, 2020 |
|||||||
Amortized Cost |
Fair Value |
|||||||
Available for Sale: |
||||||||
1 year or less |
$ | $ | ||||||
Mortgage-backed securities, residential |
||||||||
|
|
|
|
|||||
$ |
$ |
|||||||
|
|
|
|
3. |
LOANS RECEIVABLE |
(In Thousands) |
June 30 ,2021 |
December 31, 2020 |
||||||
Commercial and industrial |
$ | $ | ||||||
Construction and land development |
||||||||
Real estate - commercial |
||||||||
Real estate - residential |
||||||||
Real estate - home equity |
||||||||
Consumer |
||||||||
Less: |
||||||||
Deferred fees |
( |
) | ( |
) | ||||
Allowance for loan losses |
( |
) | ( |
) | ||||
Total |
$ |
$ |
||||||
4. |
ALLOWANCE FOR LOAN LOSSES |
4. |
ALLOWANCE FOR LOAN LOSSES ( C ontinued) |
4. |
ALLOWANCE FOR LOAN LOSSES (Continued) |
• | Levels of and trends in delinquencies |
• | Trends in volume and terms |
• | Changes in collateral |
• | Changes in management and lending staff |
• | Economic trends |
• | Concentrations of credit |
• | Changes in lending policies |
• | External factors |
• | Changes in underwriting process |
• | Trends in credit quality ratings |
Commercial and Industrial |
Construction and Land Development |
Real Estate Commercial |
Real Estate Residential |
Real Estate Home Equity |
Consumer Other |
Unallocated |
Total |
|||||||||||||||||||||||||
For the Three Months Ended June 30, 2021 |
||||||||||||||||||||||||||||||||
Allowance for loan losses: |
|
|||||||||||||||||||||||||||||||
Beginning balance |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||
Charge-offs |
||||||||||||||||||||||||||||||||
Recoveries |
||||||||||||||||||||||||||||||||
Provision |
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Ending balance |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
For the Three Months Ended June 30, 2020 |
||||||||||||||||||||||||||||||||
Allowance for loan losses: |
||||||||||||||||||||||||||||||||
Beginning balance |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Charge-offs |
||||||||||||||||||||||||||||||||
Recoveries |
||||||||||||||||||||||||||||||||
Provision |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Ending balance |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4. |
ALLOWANCE FOR LOAN LOSSES (Continued) |
Commercial and Industrial |
Construction and Land Development |
Real Estate Commercial |
Real Estate Residential |
Real Estate Home Equity |
Consumer Other |
Unallocated |
Total |
|||||||||||||||||||||||||
For the Six Months Ended June 30, 2021 |
||||||||||||||||||||||||||||||||
Allowance for loan losses: |
|
|||||||||||||||||||||||||||||||
Beginning balance |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||
Charge-offs |
||||||||||||||||||||||||||||||||
Recoveries |
||||||||||||||||||||||||||||||||
Provision |
( |
) |
( |
) |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Ending balance |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
For the Six Months Ended June 30, 2020 |
||||||||||||||||||||||||||||||||
Allowance for loan losses: |
||||||||||||||||||||||||||||||||
Beginning balance |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||
Charge-offs |
||||||||||||||||||||||||||||||||
Recoveries |
||||||||||||||||||||||||||||||||
Provision |
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Ending balance |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and Industrial |
Construction and Land Development |
Real Estate Commercial |
Real Estate Residential |
Real Estate Home Equity |
Consumer Other |
Unallocated |
Total |
|||||||||||||||||||||||||
As of June 30, 2021 |
||||||||||||||||||||||||||||||||
Allowance for loan losses: |
|
|||||||||||||||||||||||||||||||
Ending balance |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Ending balance: individually evaluated for impairment |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Ending balance: collectively evaluated for impairment |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Loans: |
||||||||||||||||||||||||||||||||
Ending balance |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Ending balance: individually evaluated for impairment |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Ending balance: collectively evaluated for impairment |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and Industrial |
Construction and Land Development |
Real Estate Commercial |
Real Estate Residential |
Real Estate Home Equity |
Consumer Other |
Unallocated |
Total |
|||||||||||||||||||||||||
As of December 31, 2020 |
||||||||||||||||||||||||||||||||
Allowance for loan losses: |
|
|||||||||||||||||||||||||||||||
Ending balance |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Ending balance: individually evaluated for impairment |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Ending balance: colle c tively evaluated for impairment |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Loans: |
||||||||||||||||||||||||||||||||
Ending balance |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Ending balance: individually evaluated for impairment |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Ending balance: collectively evaluated for impairment |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4. |
ALLOWANCE FOR LOAN LOSSES (Continued) |
(In Thousands) |
Special Mention |
|||||||||||||||||||
As of June 30 , 2021 |
Pass |
Substandard |
Doubtful |
Total |
||||||||||||||||
Commercial and industrial |
$ | $ | $ | $ | $ | |||||||||||||||
Construction and land development |
||||||||||||||||||||
Real estate - commercial |
||||||||||||||||||||
Real estate - residential |
||||||||||||||||||||
Real estate - home equity |
||||||||||||||||||||
Consumer |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(In Thousands) |
Special Mention |
|||||||||||||||||||
As of December 31, 2020 |
Pass |
Substandard |
Doubtful |
Total |
||||||||||||||||
Commercial and industrial |
$ | $ | $ | $ | $ | |||||||||||||||
Construction and land development |
||||||||||||||||||||
Real estate - commercial |
||||||||||||||||||||
Real estate - residential |
||||||||||||||||||||
Real estate - home equity |
||||||||||||||||||||
Consumer |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
4. |
ALLOWANCE FOR LOAN LOSSES (Continued) |
June 30, 2021 |
||||||||||||||||||||||||||||
(In Thousands) |
30-59 Days Past Due |
60-89 Days Past Due |
90 Days or Greater Past Due |
Total Past Due |
Current |
Total Loans |
Total > 90 Days and Accruing |
|||||||||||||||||||||
Commercial and industrial |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Construction and land development |
||||||||||||||||||||||||||||
Real estate - commercial |
||||||||||||||||||||||||||||
Real estate - residential |
||||||||||||||||||||||||||||
Real estate - home equity |
||||||||||||||||||||||||||||
Consumer |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
December 31, 2020 |
||||||||||||||||||||||||||||
(In Thousands) |
30-59 Days Past Due |
60-89 Days Past Due |
90 Days or Past Due |
Total Past Due |
Current | Total Loans |
Total > Days Accruing |
|||||||||||||||||||||
Commercial and industrial |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Construction and land development |
||||||||||||||||||||||||||||
Real estate - commercial |
||||||||||||||||||||||||||||
Real estate - residential |
||||||||||||||||||||||||||||
Real estate - home equity |
||||||||||||||||||||||||||||
Consumer |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4. |
ALLOWANCE FOR LOAN LOSSES (Continued) |
As of June 30, 2021 |
||||||||||||
(In Thousands) |
Recorded Investment |
Unpaid Principal Balance |
Related Allowance |
|||||||||
With no related allowance recorded: |
||||||||||||
Commercial and industrial |
$ |
$ |
$ |
— |
||||||||
Construction and land development |
— |
|||||||||||
Real estate - commercial |
— |
|||||||||||
Real estate - residential |
— |
|||||||||||
Real estate - home equity |
— |
|||||||||||
Consumer |
— |
|||||||||||
With an allowance recorded: |
||||||||||||
Commercial and industrial |
$ |
$ |
$ |
|||||||||
Construction and land development |
||||||||||||
Real estate - commercial |
||||||||||||
Real estate - residential |
||||||||||||
Real estate - home equity |
||||||||||||
Consumer |
||||||||||||
Total |
||||||||||||
Commercial and industrial |
$ |
|||||||||||
Construction and land development |
||||||||||||
Real estate - commercial |
||||||||||||
Real estate - residential |
||||||||||||
Real estate - home equity |
||||||||||||
Consumer |
||||||||||||
|
|
|
|
|
|
|||||||
$ |
||||||||||||
|
|
|
|
|
|
|||||||
As of December 31, 2020 |
||||||||||||
With no related allowance recorded: |
||||||||||||
Commercial and industrial |
$ |
$ |
$ |
— |
||||||||
Construction and land development |
— |
|||||||||||
Real estate - commercial |
— |
|||||||||||
Real estate - residential |
— |
|||||||||||
Real estate - home equity |
— |
|||||||||||
Consumer |
— |
|||||||||||
With an allowance recorded: |
||||||||||||
Commercial and industrial |
$ |
$ |
$ |
|||||||||
Construction and land development |
||||||||||||
Real estate - commercial |
||||||||||||
Real estate - residential |
||||||||||||
Real estate - home equity |
||||||||||||
Consumer |
||||||||||||
Total |
||||||||||||
Commercial and industrial |
$ |
|||||||||||
Construction and land development |
||||||||||||
Real estate - commercial |
||||||||||||
Real estate - residential |
||||||||||||
Real estate - home equity |
||||||||||||
Consumer |
||||||||||||
|
|
|
|
|
|
|||||||
$ |
$ |
$ |
||||||||||
|
|
|
|
|
|
4. |
ALLOWANCE FOR LOAN LOSSES (Continued) |
Three Months Ended June 30, |
||||||||||||||||
2021 |
2020 |
|||||||||||||||
(In Thousands) |
Average Recorded Investment |
Interest Income Recognized |
Average Recorded Investment |
Interest Income Recognized |
||||||||||||
With no related allowance recorded: |
||||||||||||||||
Commercial and industrial |
$ |
$ |
$ |
$ |
||||||||||||
Construction and land development |
||||||||||||||||
Real estate - commercial |
||||||||||||||||
Real estate - residential |
||||||||||||||||
Real estate - home equity |
||||||||||||||||
Consumer |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
With an allowance recorded: |
||||||||||||||||
Commercial and industrial |
$ |
$ |
$ |
|||||||||||||
Construction and land development |
||||||||||||||||
Real estate - commercial |
||||||||||||||||
Real estate - residential |
||||||||||||||||
Real estate - home equity |
||||||||||||||||
Consumer |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ |
$ |
$ |
$ |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Six Months Ended June 30, |
||||||||||||||||
2021 |
2020 |
|||||||||||||||
(In Thousands) |
Average Recorded Investment |
Interest Income Recognized |
Average Recorded Investment |
Interest Income Recognized |
||||||||||||
With no related allowance recorded: |
||||||||||||||||
Commercial and industrial |
$ |
$ |
$ |
$ |
||||||||||||
Construction and land development |
||||||||||||||||
Real estate - commercial |
||||||||||||||||
Real estate - residential |
||||||||||||||||
Real estate - home equity |
||||||||||||||||
Consumer |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
With an allowance recorded: |
||||||||||||||||
Commercial and industrial |
$ |
$ |
$ |
|||||||||||||
Construction and land development |
||||||||||||||||
Real estate - commercial |
||||||||||||||||
Real estate - residential |
||||||||||||||||
Real estate - home equity |
||||||||||||||||
Consumer |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ |
$ |
$ |
$ |
||||||||||||
|
|
|
|
|
|
|
|
(In Thousands) |
June 30, 2021 |
December 31, 2020 |
||||||
Commercial and industrial |
$ | $ | ||||||
Construction and land development |
||||||||
Real estate - commercial |
||||||||
Real estate - residential |
||||||||
Real estate - home equity |
||||||||
Consumer |
||||||||
|
|
|
|
|||||
Total |
$ |
$ |
||||||
|
|
|
|
4. |
ALLOWANCE FOR LOAN |
5. |
DEPOSITS |
June 30, 2021 |
December 31, 2020 |
|||||||||||||||
(In Thousands) |
Amount |
% |
Amount |
% |
||||||||||||
Demand, noninterest-bearing |
$ | % | $ | % | ||||||||||||
Demand, interest-bearing |
||||||||||||||||
Money market and savings |
||||||||||||||||
Time deposits, $ |
||||||||||||||||
Time deposits, other |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ |
% |
$ |
% | |||||||||||||
|
|
|
|
|
|
|
|
(In Thousands) |
June 30, 2021 |
December 31, 2020 |
||||||
One year or less |
$ | $ | ||||||
More than one year to two years |
||||||||
More than two years to three years |
||||||||
More than three years to four years |
||||||||
More than four years to five years |
||||||||
More than five years |
||||||||
|
|
|
|
|||||
Total |
$ |
$ |
||||||
|
|
|
|
6. |
SHORT-TERM BORROWINGS |
(In Thousands) |
June 30, 2021 |
December 31, 2020 |
||||||
Balance at period end |
$ | $ | ||||||
Average balance outstanding |
||||||||
Maximum month-end balance |
||||||||
Weighted-average rate at period end |
% | % | ||||||
Weighted-average rate during the period |
% |
% |
6. |
SHORT-TERM BORROWINGS (Continued) |
7. |
OTHER BORROWINGS AND SUBORDINATED DEBT |
(in Thousands) |
June 30 ,2021 |
December 31, 2020 |
||||||
Long-term FHLB advances |
$ | $ | ||||||
Subordinated Debt |
||||||||
Federal Reserve PPPLF |
||||||||
|
|
|
|
|||||
Total Long-term borrowings |
$ |
$ |
||||||
|
|
|
|
Type |
Amount |
Rate |
Due in |
|||||||||
Mid Term Repo Fixed Rate |
$ | % | ||||||||||
Fixed Rate |
% | |||||||||||
Fixed Rate |
% | |||||||||||
Fixed Rate |
% | |||||||||||
Fixed Rate |
% | |||||||||||
$ |
% |
|||||||||||
|
|
7. |
OTHER BORROWINGS AND SUBORDINATED DEBT (Continued) |
8. |
INCOME TAXES |
For the Six Months Ended June 30, |
||||||||
(In Thousands) |
2021 |
2020 |
||||||
Current tax expense |
$ | $ | ||||||
Deferred tax benefit |
( |
) | ||||||
|
|
|
|
|||||
Total |
$ | ( |
) | $ | ||||
|
|
|
|
(In Thousands) |
June ,2021 |
December 31, 2020 |
||||||
Deferred tax assets: |
||||||||
Allowance for loan losses |
$ | $ | ||||||
Fair value adjustment on acquired loans |
||||||||
Alternative minimum tax credit |
||||||||
Net operating loss carryforwards |
||||||||
Other |
( |
) | ( |
) | ||||
|
|
|
|
|||||
|
||||||||
|
|
|
|
|||||
Valuation allowance |
( |
) | ||||||
|
|
|
|
|||||
|
$ | $ | ||||||
|
|
|
|
8. |
INCOME TAXES (Continued) |
8. |
INCOME TAXES (Continued) |
9. |
STOCK-BASED COMPENSATION |
Number of Stock Options |
Weighted- Average Exercise Price |
Weighted- Average Remaining Contractual Term in Years |
Aggregate Intrinsic Value (in ‘000s) |
|||||||||||||
Outstanding, December 31, 2020 |
$ | $ | ||||||||||||||
Granted |
||||||||||||||||
Expired/terminated |
||||||||||||||||
Exercised |
||||||||||||||||
Outstanding, J 3u ne0 , 2021 |
$ | $ | ||||||||||||||
Exercisable at period end |
$ | $ | ||||||||||||||
10. |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK |
(In Thousands) |
June 30 ,2021 |
December 31, 2020 |
||||||
Unfunded commitments under lines of credit: |
||||||||
Home equity loans |
$ | $ | ||||||
Commercial real estate, construction, and land development |
||||||||
Commercial and industrial |
||||||||
Other |
||||||||
|
|
|
|
|||||
Total |
$ |
$ |
||||||
|
|
|
|
11. |
LEASE COMMITMENTS AND CONTINGENCIES |
Lease cost (In Thousands) |
Three months ended June 30, 2021 |
Six months ended June 30, 2021 |
||||||
Amortization of right-of-use |
$ |
$ |
||||||
Interest expense |
||||||||
|
|
|
|
|||||
Total lease cost |
$ |
$ |
||||||
|
|
|
|
|||||
Weighted-average remaining term (years) |
||||||||
Weighted-average discount rate |
% |
11. |
LEASE COMMITMENTS AND CONTINGENCIES (Continued) |
(In Thousands) |
Amount |
|||
2021 |
$ |
|||
2022 |
||||
2023 |
||||
2024 |
||||
2025 and thereafter |
||||
|
|
|||
Total Undiscounted Cash Flows |
$ |
|||
Discount on Cash Flows |
( |
) | ||
|
|
|||
Total lease liabilities |
$ |
|||
|
|
1 2 . |
REGULATORY CAPITAL |
12. |
REGULATORY CAPITAL REQUIREMENTS (Continued) |
June 30, 2021 |
December 31, 2020 |
|||||||||||||||
(In Thousands) |
Amount |
Ratio |
Amount |
Ratio |
||||||||||||
Total capital |
||||||||||||||||
(to risk-weighted assets) |
||||||||||||||||
Actual |
$ | % | $ | % | ||||||||||||
For capital adequacy purposes |
||||||||||||||||
To be well capitalized |
||||||||||||||||
Tier 1 capital |
||||||||||||||||
(to risk-weighted assets) |
||||||||||||||||
Actual |
$ | % | $ | % | ||||||||||||
For capital adequacy purposes |
||||||||||||||||
To be well capitalized |
||||||||||||||||
Common equity |
||||||||||||||||
(to risk-weighted assets) |
||||||||||||||||
Actual |
$ | % | $ | % | ||||||||||||
For capital adequacy purposes |
||||||||||||||||
To be well capitalized |
||||||||||||||||
Tier 1 capital |
||||||||||||||||
(to average assets) |
||||||||||||||||
Actual |
$ | % | $ | % | ||||||||||||
For capital adequacy purposes |
||||||||||||||||
To be well capitalized |
1 3 . |
FAIR VALUE MEASUREMENTS |
13. |
FAIR VALUE MEASUREMENTS (continued) |
Level I: |
Quoted prices are available in active markets for identical assets or liabilities as of the reported date. | |||
Level II: |
Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently and items that are fair-valued using other financial instruments, the parameters of which can be directly observed. | |||
Level III: |
Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
At June 30, 2021 |
At December 31, 2020 |
|||||||||||||||
(In Thousands) |
Carrying Amount |
Fair Value |
Carrying Amount |
Fair Value |
||||||||||||
Financial assets: |
||||||||||||||||
Cash and cash equivalents (Level 1) |
$ | $ | $ | $ | ||||||||||||
Loans (Level 3) |
||||||||||||||||
Accrued interest receivable (Level 1) |
||||||||||||||||
Federal Home Loan Bank stock (Level 1) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities: |
||||||||||||||||
Non-maturity deposits (Level 1) |
||||||||||||||||
Time Deposits (Level 3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings (Level 1) |
||||||||||||||||
Long-term borrowings (Level 3) |
||||||||||||||||
Subordinated Notes (Level 3) |
||||||||||||||||
Accrued interest payable (Level 1) |
||||||||||||||||
Off-balance-sheet financial instruments (Level 3) |
13. |
FAIR VALUE MEASUREMENTS (continued) |
June 30, 2021 |
||||||||||||||||
(In Thousands) |
Level I |
Level II |
Level III |
Total |
||||||||||||
Assets: |
||||||||||||||||
U.S. treasury securities |
$ | $ | $ | $ | ||||||||||||
Mortgage backed securities |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | $ |
$ | $ |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
|
|
|
| |||||||||||||
December 31, 2020 |
||||||||||||||||
(In Thousands) |
Level I |
Level II |
Level III |
Total |
||||||||||||
Assets: |
||||||||||||||||
U.S. treasury securities |
$ | $ | $ | $ | ||||||||||||
Mortgage backed securities |
$ | $ | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | $ |
||||||||||||||
|
|
|
|
|
|
|
|
June 30 , 2021 |
||||||||||||||||
(In Thousands) |
Level I |
Level II |
Level III |
Total |
||||||||||||
Impaired loans |
$ | $ | $ | $ | ||||||||||||
|
|
|
| |||||||||||||
December 31, 2020 |
||||||||||||||||
(In Thousands) |
Level I |
Level II |
Level III |
Total |
||||||||||||
Impaired loans |
$ | $ | $ | $ |
13. |
FAIR VALUE MEASUREMENTS (continued) |
June 30, 2021 |
||||||||||||||||||||
Quantitative Information About Level III Fair Value Measurements |
||||||||||||||||||||
(In Thousands) |
Fair Value |
Valuation Techniques |
Unobservable Input |
Range (Weighted Average) |
||||||||||||||||
Impaired loans |
$ |
Appraisal of collateral |
|
(1 |
) |
Liquidation expenses |
|
% | ||||||||||||
December 31, 2020 |
||||||||||||||||||||
Quantitative Information About Level III Fair Value Measurements |
||||||||||||||||||||
(In Thousands) |
Fair Value |
Valuation Techniques |
Unobservable Input |
Range (Weighted Average) |
||||||||||||||||
Impaired loans |
$ |
Appraisal of collateral |
|
(1 |
) |
Liquidation expenses |
|
% |
(1) |
Fair value is generally determined through independent appraisals of the underlying collateral, which include various Level III inputs that are not identifiable. |
14. |
PROPOSED MERGER WITH GNB FINANCIAL SERVICES , INC. |
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | Overview and Strategy |
• | Comparison of Financial Condition at June 30, 2021 and December 31, 2020 |
• | Comparison of Operating Results for the Three Months Ended June 30, 2021 and 2020 |
• | Comparison of Operating Results for the Six Months Ended June 30, 2021 and 2020 |
• | Liquidity, Commitments, and Capital Resources |
• | Off-Balance Sheet Arrangements |
• | Critical Accounting Policies |
• | Recently Issued Accounting Standards |
• | statements of our goals, intentions and expectations; |
• | statements regarding our business plans, prospects, growth and operating strategies; |
• | statements regarding the quality of our loan and investment portfolios; and |
• | estimates of our risks and future costs and benefits. |
• | risks and uncertainties related to the Coronavirus Disease 2019 (“COVID-19”) pandemic and resulting governmental and societal response; |
• | risks that COVID-19 may adversely impact our customers and lead to a long-term economic recession and continuing a severe disruption in the U.S. economy, and could potentially create business continuity issues for us; |
• | general economic conditions, either nationally or in our market area, that are worse than expected; |
• | competition within our market area that is stronger than expected; |
• | changes in the level and direction of loan delinquencies and charge-offs and changes in estimates of the adequacy of the allowance for loan losses; |
• | our ability to access cost-effective funding; |
• | fluctuations in real estate values and both residential and commercial real estate market conditions; |
• | demand for loans and deposits in our market area; |
• | our ability to continue to implement our business strategies; |
• | competition among depository and other financial institutions; |
• | inflation and changes in market interest rates that reduce our margins and yields, reduce the fair value of financial instruments or reduce our volume of loan originations, or increase the level of defaults, losses and prepayments on loans we have made and make, whether held in portfolio or sold in the secondary market; |
• | adverse changes in the securities markets; |
• | changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements; |
• | our ability to manage market risk, credit risk and operational risk; |
• | our ability to enter new markets successfully and capitalize on growth opportunities; |
• | the imposition of tariffs or other domestic or international governmental polices impacting the value of the products of our borrowers; |
• | our ability to successfully integrate into our operations GNB’s assets, liabilities or systems we acquired, as well as new management personnel or customers, and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related thereto; |
• | changes in consumer spending, borrowing and savings habits; |
• | our ability to maintain our reputation; |
• | our ability to prevent or mitigate fraudulent activity; |
• | changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board; |
• | our ability to retain key employees; |
• | our ability to evaluate the amount and timing of recognition of future tax assets and liabilities; |
• | our compensation expense associated with equity benefits allocated or awarded to our employees; and |
• | changes in the financial condition, results of operations or future prospects of issuers of securities that we own. |
• | Net increase in deposits of $89.0 million; |
• | Proceeds from maturities of and repayments on investment securities of $75.7 million; and |
• | Proceeds from redemption of restricted investments in bank stocks of $2.9 million |
• | Cash used in operations of $604 thousand; |
• | Repayments of borrowings of $55.9 million; |
• | Net increase in loans receivable of $86.9 million |
• | Purchases of premises and equipment of $508 thousand; and |
• | Purchase of restricted investments in bank stocks of $1.3 million |
(dollars in thousands) | June 30, 2021 |
December 31, 2020 |
Change |
% |
||||||||||||
Commercial and industrial |
$ | 129,835 | $ | 101,370 | $ | 28,465 | 28.08 | % | ||||||||
Construction and land development |
25,177 | 20,935 | 4,242 | 20.26 | % | |||||||||||
Real estate - commercial |
193,488 | 145,800 | 47,688 | 32.71 | % | |||||||||||
Real estate - residential |
41,891 | 37,302 | 4,589 | 12.30 | % | |||||||||||
Real estate - home equity |
21,987 | 20,218 | 1,769 | 8.75 | % | |||||||||||
Consumer |
3,429 | 2,622 | 807 | 30.78 | % | |||||||||||
|
|
|
|
|||||||||||||
Total Loans |
415,807 |
328,247 |
87,560 |
26.68 |
% | |||||||||||
Deferred (fees) costs |
(1,580 | ) | (856 | ) | (724 | ) | 84.58 | % | ||||||||
Allowance for loan losses |
(4,800 | ) | (4,177 | ) | (623 | ) | 14.92 | % | ||||||||
|
|
|
|
|||||||||||||
Net Loans |
$ |
409,427 |
$ |
323,214 |
86,213 |
26.67 |
% | |||||||||
|
|
|
|
(dollars in thousands) | June 30, 2021 |
December 31, 2020 |
Change |
% |
||||||||||||
Demand, noninterest-bearing |
$ | 74,303 | $ | 42,374 | $ | 31,929 | 75.4 | % | ||||||||
Demand, interest-bearing |
31,666 | 15,883 | 15,783 | 99.4 | % | |||||||||||
Money market and savings |
132,412 | 81,756 | 50,656 | 62.0 | % | |||||||||||
Time deposits, $250,000 and over |
45,214 | 47,112 | (1,898 | ) | (4.0 | %) | ||||||||||
Time deposits, other |
88,458 | 95,929 | (7,471 | ) | (7.8 | %) | ||||||||||
|
|
|
|
|||||||||||||
Total deposits |
$ |
372,053 |
$ |
283,054 |
$ |
88,999 |
31.4 |
% | ||||||||
|
|
|
|
For the Three Months Ended June 30, |
||||||||||||||||||||||||
2021 |
2020 |
|||||||||||||||||||||||
(Dollars in thousands) |
Avg Bal |
Interest |
Yield/Rate |
Avg Bal |
Interest |
Yield/Rate |
||||||||||||||||||
Int. Earn. Cash |
$ | 20,796 | $ | 4 | 0.09 | % | $ | 44,078 | $ | 11 | 0.10 | % | ||||||||||||
Investments |
3,617 | 26 | 2.91 | % | 10,083 | 41 | 1.64 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Cash Equiv. and Investments |
24,413 | 31 | 0.51 | % | 54,161 | 52 | 0.39 | % | ||||||||||||||||
Total Loans |
403,568 | 4,367 | 4.34 | % | 266,875 | 3,815 | 5.73 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Earning Assets |
427,981 |
4,398 |
4.12 |
% |
321,035 |
3,867 |
4.83 |
% | ||||||||||||||||
Other Assets |
17,199 | 7,979 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total Assets |
$ |
445,180 |
$ |
329,015 |
||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Interest bearing demand |
$ | 22,205 | $ | 9 | 0.16 | % | $ | 9,207 | $ | 4 | 0.17 | % | ||||||||||||
Money market demand |
129,606 | 108 | 0.34 | % | 61,514 | 88 | 0.57 | % | ||||||||||||||||
Time deposits |
125,590 | 248 | 0.79 | % | 113,544 | 740 | 2.61 | % | ||||||||||||||||
Total Borrowings |
58,754 | 323 | 2.20 | % | 71,111 | 102 | 0.58 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Interest-Bearing Liabilities |
336,153 | 688 | 0.82 | % | 255,376 | 934 | 1.47 | % | ||||||||||||||||
Non Int Bearing Deposits |
57,821 | 38,565 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Cost of Funds |
$ |
393,974 |
$ |
688 |
0.70 | % | $ |
293,942 |
$ |
934 |
1.27 | % | ||||||||||||
Other Liabilities |
7,867 | 861 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total Liabilities |
$ |
401,842 |
$ |
294,803 |
||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Equity |
$ |
43,338 |
$ |
34,211 |
||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total Liabilities & Equity |
$ |
445,180 |
$ |
329,015 |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Net Interest Income |
$ |
3,710 |
$ |
2,933 |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Net Interest Spread |
3.42 |
% |
3.56 |
% | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Net Interest Margin |
3.48 |
% |
3.66 |
% | ||||||||||||||||||||
|
|
|
|
Three Months Ended June 30, 2021 vs. 2020 Increase (Decrease) Due To: |
||||||||||||||||
(Dollars in thousands) |
Rate |
Volume |
Net |
|||||||||||||
Interest Income: |
||||||||||||||||
Int. Earn. Cash |
$ | (1 | ) | $ | (6 | ) | $ | (7 | ) | |||||||
Investments |
11 | (26 | ) | (15 | ) | |||||||||||
Total Loans |
(1,124 | ) | 1,677 | 553 | ||||||||||||
|
|
|
|
|
|
|||||||||||
Total Earning Assets |
(1,114 | ) | 1,645 | 531 | ||||||||||||
Interest Expense: |
||||||||||||||||
Interest bearing demand |
(1 | ) | 6 | 5 | ||||||||||||
Money market demand |
(77 | ) | 97 | 20 | ||||||||||||
Time deposits |
(571 | ) | 79 | (492 | ) | |||||||||||
Total Borrowings |
239 | (18 | ) | 221 | ||||||||||||
|
|
|
|
|
|
|||||||||||
Total Interest-Bearing Liabilities |
(410 | ) | 164 | (246 | ) | |||||||||||
Change in Net Interest Income |
$ | (704 | ) | $ | 1,481 | $ | 777 | |||||||||
|
|
|
|
|
|
For the Six Months Ended June 30, |
||||||||||||||||||||||||
2021 |
2020 |
|||||||||||||||||||||||
(Dollars in thousands) |
Avg Bal |
Interest |
Yield/Rate |
Avg Bal |
Interest |
Yield/Rate |
||||||||||||||||||
Int. Earn. Cash |
$ | 23,920 | $ | 11 | 0.09 | % | $ | 40,617 | $ | 123 | 0.61 | % | ||||||||||||
Investments |
5,495 | 55 | 2.01 | % | 8,900 | 78 | 1.76 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Cash Equiv. and Investments |
29,415 | 66 | 0.45 | % | 49,517 | 201 | 0.82 | % | ||||||||||||||||
Total Loans |
379,713 | 8,097 | 4.30 | % | 225,101 | 5,981 | 5.34 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Earning Assets |
409,128 |
8,163 |
4.02 |
% |
274,618 |
6,182 |
4.53 |
% | ||||||||||||||||
Other Assets |
12,822 | 9,640 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total Assets |
$ |
421,950 |
$ |
284,258 |
||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Interest bearing demand |
$ | 21,267 | $ | 17 | 0.16 | % | $ | 8,263 | $ | 8 | 0.21 | % | ||||||||||||
Money market demand |
116,845 | 202 | 0.35 | % | 62,049 | 305 | 0.99 | % | ||||||||||||||||
Time deposits |
124,681 | 564 | 0.91 | % | 114,284 | 1,488 | 2.62 | % | ||||||||||||||||
Total Borrowings |
57,276 | 589 | 2.08 | % | 37,005 | 103 | 0.56 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Interest-Bearing Liabilities |
320,069 | 1,372 | 0.86 | % | 221,601 | 1,904 | 1.73 | % | ||||||||||||||||
Non Int Bearing Deposits |
54,648 | 26,433 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Cost of Funds |
$ |
374,717 |
$ |
1,372 |
0.74 |
% |
$ |
248,034 |
$ |
1,904 |
1.54 |
% | ||||||||||||
Other Liabilities |
4,546 | 844 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total Liabilities |
$ |
379,263 |
$ |
248,878 |
||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Equity |
$ |
42,687 |
$ |
35,380 |
||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total Liabilities & Equity |
$ |
421,950 |
$ |
284,258 |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Net Interest Income |
$ |
6,791 |
$ |
4,278 |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Net Interest Spread |
3.29 |
% |
2.98 |
% | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Net Interest Margin |
3.35 |
% |
3.13 |
% | ||||||||||||||||||||
|
|
|
|
Six Months Ended June 30, 2021 vs. 2020 Increase (Decrease) Due To: |
||||||||||||||||
(Dollars in thousands) |
Rate |
Volume |
Net |
|||||||||||||
Interest Income: |
||||||||||||||||
Int. Earn. Cash |
$ | (62 | ) | $ | (51 | ) | $ | (113 | ) | |||||||
Investments |
7 | (30 | ) | (23 | ) | |||||||||||
Total Loans |
(2,023 | ) | 4,140 | 2,117 | ||||||||||||
|
|
|
|
|
|
|||||||||||
Total Earning Assets |
(2,078 | ) | 4,059 | 1,981 | ||||||||||||
Interest Expense: |
||||||||||||||||
Interest bearing demand |
(5 | ) | 13 | 8 | ||||||||||||
Money market demand |
(370 | ) | 267 | (103 | ) | |||||||||||
Time deposits |
(1,054 | ) | 131 | (923 | ) | |||||||||||
Total Borrowings |
431 | 55 | 486 | |||||||||||||
|
|
|
|
|
|
|||||||||||
Total Interest-Bearing Liabilities |
(998 | ) | 466 | (532 | ) | |||||||||||
Change in Net Interest Income |
$ | (1,080 | ) | $ | 3,593 | $ | 2,513 | |||||||||
|
|
|
|
|
|
Exhibit Number |
Description | |
3.1 | Articles of Incorporation, as amended, incorporated by reference to Exhibit 3.1 to Form S-4 Registration Statement, filed May 7, 2021 | |
3.2 | Amended and Restated Bylaws, incorporated by reference to Exhibit 3.2 to Form S-4 Registration Statement, filed May 7, 2021 | |
31.1 | Certification of Principal Executive Officer as required by Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended. | |
31.2 | Certification of Principal Financial Officer as required by Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended. | |
32 | Section 1350 Certification | |
101 INS** | The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document | |
101 SCH** | Inline XBRL Taxonomy Extension Schema Document | |
101 CAL** | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101 DEF** | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101 LAB** | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101 PRE** | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | Cover Page Interactive Data File - the cover page interactive data file does not appear in the interactive date file because its XBRL tags are embedded with the inline XBRL document. |
By: |
/s/ Andrew Samuel | |
Andrew Samuel | ||
Vice Chairman and Chief Executive Officer | ||
(Principal Executive Officer) | ||
By: |
/s/ Kristofer Paul | |
Kristofer Paul | ||
Chief Financial Officer | ||
(Principal Financial Officer) | ||
(Principal Accounting Officer) |