|
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
|
New Mexico
|
|
85-0242376
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
1200 Trinity Drive
Los Alamos, New Mexico
|
|
87544
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Large accelerated filer
|
Accelerated filer
|
Non-accelerated filer (do not check if a smaller reporting company)
|
Smaller reporting company
|
Emerging growth company
|
PART I – FINANCIAL INFORMATION
|
|
Item 1. Financial Statements and Supplementary Data
|
1
|
Item 2. Management's Discussions and Analysis of Financial Condition and Results of Operations
|
24
|
Item 3. Quantitative and Qualitative Disclosures About Market Risk
|
35
|
Item 4. Controls and Procedures
|
35
|
PART II – OTHER INFORMATION
|
|
Item 1. Legal Proceedings
|
36
|
Item 1A. Risk Factors
|
36
|
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
|
36
|
Item 3. Defaults Upon Senior Securities
|
36
|
Item 4. Mine Safety Disclosures
|
36
|
Item 5. Other Information
|
36
|
Item 6. Exhibits
|
37
|
Signatures
|
38
|
(In thousands, except share and per share data)
|
||||||||
|
September 30, 2018
|
December 31, 2017
|
||||||
ASSETS
|
||||||||
Cash and due from banks
|
$
|
11,046
|
$
|
12,893
|
||||
Interest-bearing deposits with banks
|
3,645
|
22,541
|
||||||
Cash and cash equivalents
|
14,691
|
35,434
|
||||||
Investment securities available for sale, at fair value
|
437,975
|
468,733
|
||||||
Investment securities held to maturity, at amortized cost (fair value of $7,151 and $7,369 as of September 30, 2018 and December 31, 2017, respectively)
|
7,769
|
7,854
|
||||||
Non-marketable equity securities
|
5,819
|
3,617
|
||||||
Loans held for sale, at lower of cost or market
|
6,815
|
-
|
||||||
Loans (net of allowance for loan losses of $9,528 and $13,803 as of September 30, 2018 and December 31, 2017, respectively)
|
695,296
|
686,341
|
||||||
Bank owned life insurance ("BOLI")
|
26,313
|
25,656
|
||||||
Premises and equipment, net
|
28,027
|
28,542
|
||||||
Other real estate owned ("OREO"), net
|
5,982
|
6,432
|
||||||
Deferred tax assets ("DTAs"), net
|
11,621
|
10,143
|
||||||
Other assets
|
13,283
|
14,781
|
||||||
Total assets
|
$
|
1,253,591
|
$
|
1,287,533
|
||||
|
||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Liabilities
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing
|
$
|
175,655
|
$
|
161,677
|
||||
Interest-bearing
|
921,758
|
965,670
|
||||||
Total deposits
|
1,097,413
|
1,127,347
|
||||||
Borrowings
|
15,400
|
2,300
|
||||||
Junior subordinated debt
|
26,766
|
36,941
|
||||||
Other liabilities
|
6,243
|
15,399
|
||||||
Total liabilities
|
1,145,822
|
1,181,987
|
||||||
|
||||||||
Stock owned by Employee Stock Ownership Plan ("ESOP") participants; 723,127 shares and 831,645 shares as of September 30, 2018 and December 31, 2017, respectively, at fair value
|
$
|
5,183
|
$
|
5,961
|
||||
|
||||||||
Commitments and contingencies (Note 13)
|
||||||||
|
||||||||
Stockholders' equity
|
||||||||
Common stock voting, no par; 20,000,000 shares authorized; 11,660,491 and 11,364,862 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively
|
11,660
|
11,365
|
||||||
Common stock non-voting, no par; 20,000,000 shares authorized; 8,044,292 shares and 8,286,200 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively
|
8,044
|
8,286
|
||||||
Additional paid-in capital
|
36,222
|
35,071
|
||||||
Retained earnings
|
64,093
|
54,587
|
||||||
Common stock related to ESOP
|
(5,183
|
)
|
(5,961
|
)
|
||||
Accumulated other comprehensive loss
|
(12,250
|
)
|
(3,763
|
)
|
||||
Total shareholders' equity
|
102,586
|
99,585
|
||||||
Total liabilities and shareholders' equity
|
$
|
1,253,591
|
$
|
1,287,533
|
(In thousands, except per share data)
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Interest income:
|
||||||||||||||||
Loans held for sale
|
$
|
125
|
$
|
-
|
$
|
167
|
$
|
0
|
||||||||
Loans, including fees
|
8,534
|
9,016
|
25,272
|
27,613
|
||||||||||||
Interest and dividends on investment securities:
|
||||||||||||||||
Taxable
|
1,506
|
1,665
|
4,562
|
5,143
|
||||||||||||
Nontaxable
|
1,042
|
506
|
3,127
|
1,085
|
||||||||||||
Other interest income
|
78
|
275
|
256
|
574
|
||||||||||||
Total interest income
|
11,285
|
11,462
|
33,384
|
34,415
|
||||||||||||
|
||||||||||||||||
Interest expense:
|
||||||||||||||||
Deposits
|
424
|
432
|
1,255
|
1,333
|
||||||||||||
Borrowings
|
131
|
37
|
313
|
114
|
||||||||||||
Junior subordinated debt
|
363
|
599
|
1,501
|
1,912
|
||||||||||||
Total interest expense
|
918
|
1,068
|
3,069
|
3,359
|
||||||||||||
Net interest income
|
10,367
|
10,394
|
30,315
|
31,056
|
||||||||||||
(Benefit) provision for loan losses
|
(1,000
|
)
|
(250
|
)
|
(1,480
|
)
|
(1,220
|
)
|
||||||||
Net interest income after benefit for loan losses
|
11,367
|
10,644
|
31,795
|
32,276
|
||||||||||||
|
||||||||||||||||
Noninterest income:
|
||||||||||||||||
Mortgage loan servicing fees
|
-
|
446
|
-
|
1,394
|
||||||||||||
Trust and investment services fees
|
749
|
643
|
2,255
|
1,953
|
||||||||||||
Service charges on deposits
|
226
|
202
|
712
|
784
|
||||||||||||
Net gain on sale of OREO
|
191
|
130
|
764
|
800
|
||||||||||||
Net gain on sale of loans
|
-
|
-
|
-
|
-
|
||||||||||||
Net loss on sale of securities
|
-
|
-
|
-
|
(1,248
|
)
|
|||||||||||
BOLI income
|
218
|
88
|
656
|
271
|
||||||||||||
Mortgage referral fee income
|
288
|
431
|
874
|
1,175
|
||||||||||||
Interchange fees
|
507
|
567
|
1,593
|
1,823
|
||||||||||||
Other fees
|
301
|
312
|
936
|
984
|
||||||||||||
Venture capital investment income
|
-
|
-
|
735
|
(21
|
)
|
|||||||||||
Other noninterest income
|
18
|
13
|
32
|
85
|
||||||||||||
Total noninterest income
|
2,498
|
2,832
|
8,557
|
8,000
|
||||||||||||
|
||||||||||||||||
Noninterest expenses:
|
||||||||||||||||
Salaries and employee benefits
|
5,410
|
5,668
|
16,286
|
17,913
|
||||||||||||
Occupancy
|
522
|
553
|
1,592
|
1,590
|
||||||||||||
Data processing
|
952
|
1,132
|
2,894
|
3,557
|
||||||||||||
Legal, professional and accounting fees
|
488
|
712
|
1,540
|
3,998
|
||||||||||||
Change in value of Mortgage servicing rights ("MSRs")
|
-
|
677
|
-
|
1,406
|
||||||||||||
Other noninterest expense
|
1,674
|
2,931
|
5,955
|
10,010
|
||||||||||||
Total noninterest expenses
|
9,046
|
11,673
|
28,267
|
38,474
|
||||||||||||
Income (loss) before provision for income taxes
|
4,819
|
1,803
|
12,085
|
1,802
|
||||||||||||
Provision for income taxes
|
1,303
|
1,398
|
2,579
|
3,487
|
||||||||||||
Net income (loss)
|
3,516
|
405
|
9,506
|
(1,685
|
)
|
|||||||||||
Dividends and discount accretion on preferred shares
|
-
|
-
|
-
|
770
|
||||||||||||
Net income (loss) attributable to common stockholders
|
$
|
3,516
|
$
|
405
|
$
|
9,506
|
$
|
(2,455
|
)
|
|||||||
Basic earnings (loss) per common share
|
$
|
0.18
|
$
|
0.02
|
$
|
0.48
|
$
|
(0.16
|
)
|
|||||||
Diluted earnings (loss) per common share
|
$
|
0.18
|
$
|
0.02
|
$
|
0.48
|
$
|
(0.16
|
)
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
|
2018
|
2017
|
2018
|
2017
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
Net income (loss)
|
$
|
3,516
|
$
|
405
|
$
|
9,506
|
$
|
(1,685
|
)
|
|||||||
Other comprehensive income:
|
||||||||||||||||
Unrealized (loss) gains on securities available for sale
|
(2,418
|
)
|
229
|
(11,415
|
)
|
2,343
|
||||||||||
Securities losses reclassified into earnings
|
-
|
-
|
-
|
1,248
|
||||||||||||
Related income tax expense (benefit)
|
620
|
(106
|
)
|
2,928
|
(1,436
|
)
|
||||||||||
Other comprehensive (loss) income
|
(1,798
|
)
|
123
|
(8,487
|
)
|
2,155
|
||||||||||
Total comprehensive income (loss)
|
$
|
1,718
|
$
|
528
|
$
|
1,019
|
$
|
470
|
Common stock
|
||||||||||||||||||||||||||||||||||||
Voting
Issued
|
Held in
Treasury,
at cost
|
Non-voting
Issued
|
Preferred
Stock
|
Additional
Paid-in Capital
|
Retained
Earnings
|
Accumulated Other
Comprehensive
Income (Loss)
|
Common
Stock Related
to ESOP
|
Total
Stockholders'
Equity
|
||||||||||||||||||||||||||||
Balance, December 31, 2016
|
$
|
9,509
|
$
|
-
|
$
|
-
|
$
|
74,007
|
$
|
(1,373
|
)
|
$
|
60,651
|
$
|
(5,495
|
)
|
$
|
(3,192
|
)
|
$
|
134,107
|
|||||||||||||||
Net loss
|
(1,685
|
)
|
(1,685
|
)
|
||||||||||||||||||||||||||||||||
Other comprehensive income
|
2,155
|
2,155
|
||||||||||||||||||||||||||||||||||
Redemption of Series A preferred shares
|
(35,539
|
)
|
(35,539
|
)
|
||||||||||||||||||||||||||||||||
Redemption of Series B preferred shares
|
(1,777
|
)
|
(1,777
|
)
|
||||||||||||||||||||||||||||||||
Dividends declared on preferred shares
|
(372
|
)
|
(372
|
)
|
||||||||||||||||||||||||||||||||
Series C preferred shares converted to non-voting common stock
|
8,286
|
(37,089
|
)
|
28,803
|
-
|
|||||||||||||||||||||||||||||||
Common stock issued for board compensation
|
40
|
153
|
193
|
|||||||||||||||||||||||||||||||||
Amortization of preferred stock issuance costs
|
398
|
(398
|
)
|
-
|
||||||||||||||||||||||||||||||||
Restricted stock units ("RSUs") vested
|
17
|
(17
|
)
|
-
|
||||||||||||||||||||||||||||||||
RSUs compensation expense
|
91
|
91
|
||||||||||||||||||||||||||||||||||
Balance, September 30, 2017
|
$
|
9,566
|
$
|
-
|
$
|
8,286
|
$
|
-
|
$
|
27,657
|
$
|
58,196
|
$
|
-3,340
|
$
|
-3,192
|
$
|
97,173
|
Common stock
|
||||||||||||||||||||||||||||||||||||
Voting
Issued
|
Held in
Treasury,
at cost
|
Non-voting
Issued
|
Preferred
Stock
|
Additional
Paid-in Capital
|
Retained
Earnings
|
Accumulated Other
Comprehensive
Income (Loss)
|
Common
Stock Related
to ESOP
|
Total
Stockholders'
Equity
|
||||||||||||||||||||||||||||
Balance, December 31, 2017
|
$
|
11,365
|
$
|
-
|
$
|
8,286
|
$
|
-
|
$
|
35,071
|
$
|
54,587
|
$
|
(3,763
|
)
|
$
|
(5,961
|
)
|
$
|
99,585
|
||||||||||||||||
Net income
|
9,506
|
9,506
|
||||||||||||||||||||||||||||||||||
Other comprehensive loss
|
(8,487
|
)
|
(8,487
|
)
|
||||||||||||||||||||||||||||||||
Rights offering costs
|
(2
|
)
|
(2
|
)
|
||||||||||||||||||||||||||||||||
Common stock issued to board
|
17
|
115
|
132
|
|||||||||||||||||||||||||||||||||
ESOP distributions
|
778
|
778
|
||||||||||||||||||||||||||||||||||
RSU compensation expense
|
1,105
|
1,105
|
||||||||||||||||||||||||||||||||||
Common stock issued for vested RSUs
|
36
|
(67
|
)
|
(31
|
)
|
|||||||||||||||||||||||||||||||
Conversion from non-voting to voting common stock
|
242
|
(242
|
)
|
-
|
||||||||||||||||||||||||||||||||
Balance, September 30, 2018
|
$
|
11,660
|
$
|
-
|
$
|
8,044
|
$
|
-
|
$
|
36,222
|
$
|
64,093
|
$
|
(12,250
|
)
|
$
|
(5,183
|
)
|
$
|
102,586
|
|
Nine Months Ended September 30,
|
|||||||
|
2018
|
2017
|
||||||
Cash Flows From Operating Activities
|
(Dollars in thousands)
|
|||||||
Net income (loss)
|
$
|
9,506
|
(1,685
|
)
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
5,778
|
5,104
|
||||||
Benefit for loan losses
|
(1,480
|
)
|
(1,220
|
)
|
||||
Net loss on sale of investment securities
|
-
|
1,248
|
||||||
Net gain on sale of loans
|
-
|
-
|
||||||
Gains and write-downs on OREO, net
|
(713
|
)
|
(166
|
)
|
||||
Loss (gain) on disposal of premises and equipment
|
5
|
(37
|
)
|
|||||
Decrease in deferred income tax assets
|
1,451
|
1,081
|
||||||
Change in escrow liabilities
|
(5,306
|
)
|
712
|
|||||
Change in value of MSRs
|
-
|
1,406
|
||||||
BOLI income
|
(656
|
)
|
(271
|
)
|
||||
Compensation expense recognized for restricted stock units
|
1,105
|
91
|
||||||
Decrease in accrued interest payable on sub debt
|
-
|
(9,676
|
)
|
|||||
Changes in operating assets and liabilities:
|
||||||||
Other assets
|
731
|
4,703
|
||||||
Other liabilities
|
(3,849
|
)
|
(2,158
|
)
|
||||
Net cash provided by (used in) operating activities before origination and gross sales of loans held for sale
|
6,572
|
(868
|
)
|
|||||
Gross sales of loans held for sale
|
-
|
-
|
||||||
Origination of loans held for sale
|
-
|
-
|
||||||
Net cash provided by (used in) operating activities
|
$
|
6,572
|
(868
|
)
|
|
Nine Months Ended September 30,
|
|||||||
|
2018
|
2017
|
||||||
Cash Flows From Investing Activities
|
(Dollars in thousands)
|
|||||||
Proceeds from maturities and paydowns of investment securities, available for sale
|
$
|
36,370
|
$
|
38,647
|
||||
Proceeds from sale of investment securities, available for sale
|
-
|
56,543
|
||||||
Purchase of investment securities, available for sale
|
(21,824
|
)
|
(92,437
|
)
|
||||
Purchase of investment securities, other
|
(1,479
|
)
|
(2
|
)
|
||||
Proceeds from maturities and paydowns of investment securities, held to maturity
|
72
|
884
|
||||||
Proceeds from sale of investment securities, other
|
-
|
33
|
||||||
Purchase bank owned life insurance
|
-
|
-
|
||||||
Proceeds from sale of other real estate owned
|
2,358
|
3,251
|
||||||
Loans paid down (funded), net
|
(15,316
|
)
|
48,608
|
|||||
Purchases of premises and equipment
|
(450
|
)
|
(3,907
|
)
|
||||
Proceeds from sale of premises and equipment
|
1
|
69
|
||||||
Net cash (used in) provided by investing activities
|
(268
|
)
|
51,689
|
|||||
Cash Flows From Financing Activities
|
||||||||
Net increase (decrease) in demand deposits, NOW accounts and savings accounts
|
(3,954
|
)
|
(2,770
|
)
|
||||
Net decrease in time deposits
|
(25,982
|
)
|
(37,331
|
)
|
||||
Partial repayment of subordinated debt
|
(10,310
|
)
|
-
|
|||||
Proceeds from issuance of short-term borrowings
|
13,100
|
-
|
||||||
Redemption of preferred stock
|
-
|
(37,316
|
)
|
|||||
Decrease in dividends payable on preferred stock
|
-
|
(12,965
|
)
|
|||||
Issuance of common stock
|
99
|
193
|
||||||
Net cash used in (provided by) financing activities
|
(27,047
|
)
|
(90,189
|
)
|
||||
Net decrease in cash and cash equivalents
|
(20,743
|
)
|
(39,368
|
)
|
||||
Cash and cash equivalents:
|
||||||||
Beginning of period
|
35,434
|
119,335
|
||||||
End of period
|
$
|
14,691
|
$
|
79,967
|
||||
Supplemental Disclosures of Cash Flow Information
|
||||||||
Cash payments for:
|
||||||||
Interest
|
$
|
3,412
|
$
|
13,118
|
||||
Non-cash investing and financing activities:
|
||||||||
Transfers from loans to other real estate owned
|
1,467
|
2,848
|
||||||
Sales of other real estate owned financed by loans by the Bank
|
315
|
-
|
||||||
Transfer from loans to loans held for sale
|
6,815
|
-
|
||||||
Transfer from venture capital to loans
|
-
|
150
|
||||||
Conversion of Series C preferred stock to non-voting common stock
|
-
|
37,089
|
||||||
Dividends declared on preferred stock
|
-
|
373
|
||||||
Conversion of non-voting common stock to voting common stock
|
242
|
-
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
|
2018
|
2017
|
2018
|
2017
|
||||||||||||
|
(In thousands, except share data)
|
|||||||||||||||
Net income (loss)
|
$
|
3,516
|
$
|
405
|
$
|
9,506
|
$
|
(1,685
|
)
|
|||||||
Dividends and discount accretion on preferred shares
|
-
|
-
|
-
|
770
|
||||||||||||
Net income (loss) attributable to common stockholders
|
$
|
3,516
|
$
|
405
|
$
|
9,506
|
$
|
(2,455
|
)
|
|||||||
Weighted average common shares issued
|
19,702,110
|
17,539,689
|
19,685,998
|
15,647,178
|
||||||||||||
LESS: Weighted average treasury stock shares
|
-
|
-
|
-
|
-
|
||||||||||||
Weighted average common shares outstanding, net
|
19,702,110
|
17,539,689
|
19,685,998
|
15,647,178
|
||||||||||||
Basic earnings (loss) per common share
|
$
|
0.18
|
$
|
0.02
|
$
|
0.48
|
$
|
(0.16
|
)
|
|||||||
Dilutive effect of stock-based compensation
|
255,541
|
13,134
|
244,759
|
-
|
||||||||||||
Weighted average common shares outstanding including dilutive shares
|
19,957,651
|
17,552,823
|
19,930,757
|
15,647,178
|
||||||||||||
Diluted earnings (loss) per common share
|
$
|
0.18
|
$
|
0.02
|
$
|
0.48
|
$
|
(0.16
|
)
|
Securities Available for Sale:
|
Amortized Cost
|
Gross
Unrealized Gains
|
Gross
Unrealized Losses
|
Fair Value
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
September 30, 2018
|
||||||||||||||||
U.S. government sponsored agencies
|
$
|
69,300
|
$
|
-
|
$
|
(2,296
|
)
|
$
|
67,004
|
|||||||
State and political subdivisions
|
162,628
|
30
|
(5,114
|
)
|
157,544
|
|||||||||||
Residential mortgage backed securities
|
95,703
|
37
|
(2,097
|
)
|
93,643
|
|||||||||||
Residential collateralized mortgage obligations
|
15,119
|
48
|
(188
|
)
|
14,979
|
|||||||||||
Commercial mortgage backed securities
|
109,725
|
-
|
(5,388
|
)
|
104,337
|
|||||||||||
SBA pools
|
486
|
-
|
(18
|
)
|
468
|
|||||||||||
Totals
|
$
|
452,961
|
$
|
115
|
$
|
(15,101
|
)
|
$
|
437,975
|
|||||||
|
||||||||||||||||
December 31, 2017
|
||||||||||||||||
U.S. government sponsored agencies
|
$
|
69,315
|
$
|
-
|
$
|
(764
|
)
|
$
|
68,551
|
|||||||
State and political subdivisions
|
157,652
|
1,306
|
(252
|
)
|
158,706
|
|||||||||||
Residential mortgage backed securities
|
124,578
|
98
|
(1,593
|
)
|
123,083
|
|||||||||||
Residential collateralized mortgage obligations
|
9,715
|
51
|
(80
|
)
|
9,686
|
|||||||||||
Commercial mortgage backed securities
|
110,483
|
67
|
(2,388
|
)
|
108,162
|
|||||||||||
SBA pools
|
560
|
-
|
(15
|
)
|
545
|
|||||||||||
Totals
|
$
|
472,303
|
$
|
1,522
|
$
|
(5,092
|
)
|
$
|
468,733
|
Securities Held to Maturity
|
Amortized Cost
|
Gross
Unrealized Gains
|
Gross
Unrealized Losses
|
Fair Value
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
September 30, 2018
|
||||||||||||||||
SBA pools
|
$
|
7,769
|
$
|
-
|
$
|
(618
|
)
|
$
|
7,151
|
|||||||
Totals
|
$
|
7,769
|
$
|
-
|
$
|
(618
|
)
|
$
|
7,151
|
|||||||
|
||||||||||||||||
December 31, 2017
|
||||||||||||||||
SBA pools
|
$
|
7,854
|
$
|
-
|
$
|
(485
|
)
|
$
|
7,369
|
|||||||
Totals
|
$
|
7,854
|
$
|
-
|
$
|
(485
|
)
|
$
|
7,369
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
|
2018
|
2017
|
2018
|
2017
|
||||||||||||
(In thousands)
|
||||||||||||||||
Gross realized gains
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
6
|
||||||||
Gross realized losses
|
-
|
-
|
-
|
(1,254
|
)
|
|||||||||||
Net gains (losses)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(1,248
|
)
|
|
Less than 12 Months
|
12 Months or Longer
|
Total
|
|||||||||||||||||||||
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Securities Available for Sale:
|
||||||||||||||||||||||||
September 30, 2018
|
||||||||||||||||||||||||
U.S. government sponsored agencies
|
$
|
26,449
|
$
|
(834
|
)
|
$
|
41,023
|
$
|
(1,462
|
)
|
$
|
67,472
|
$
|
(2,296
|
)
|
|||||||||
State and political subdivisions
|
111,103
|
(3,551
|
)
|
36,527
|
(1,563
|
)
|
147,630
|
(5,114
|
)
|
|||||||||||||||
Residential mortgage backed securities
|
27,367
|
(653
|
)
|
59,894
|
(1,444
|
)
|
87,261
|
(2,097
|
)
|
|||||||||||||||
Residential collateralized mortgage obligations
|
6,855
|
(52
|
)
|
4,234
|
(136
|
)
|
11,089
|
(188
|
)
|
|||||||||||||||
Commercial mortgage backed securities
|
19,370
|
(614
|
)
|
84,965
|
(4,774
|
)
|
104,335
|
(5,388
|
)
|
|||||||||||||||
SBA pools
|
-
|
-
|
468
|
(18
|
)
|
468
|
(18
|
)
|
||||||||||||||||
Totals
|
$
|
191,144
|
$
|
(5,704
|
)
|
$
|
227,111
|
$
|
(9,397
|
)
|
$
|
418,255
|
$
|
(15,101
|
)
|
|||||||||
|
||||||||||||||||||||||||
December 31, 2017
|
||||||||||||||||||||||||
U.S. government sponsored agencies
|
$
|
49,070
|
$
|
(331
|
)
|
$
|
19,481
|
$
|
(433
|
)
|
$
|
68,551
|
$
|
(764
|
)
|
|||||||||
State and political subdivisions
|
23,217
|
(95
|
)
|
24,774
|
(157
|
)
|
47,991
|
(252
|
)
|
|||||||||||||||
Residential mortgage backed securities
|
18,771
|
(199
|
)
|
88,100
|
(1,394
|
)
|
106,871
|
(1,593
|
)
|
|||||||||||||||
Residential collateralized mortgage obligations
|
4,761
|
(67
|
)
|
3,502
|
(13
|
)
|
8,263
|
(80
|
)
|
|||||||||||||||
Commercial mortgage backed securities
|
6,961
|
(94
|
)
|
81,042
|
(2,294
|
)
|
88,003
|
(2,388
|
)
|
|||||||||||||||
SBA pools
|
-
|
-
|
545
|
(15
|
)
|
545
|
(15
|
)
|
||||||||||||||||
Totals
|
$
|
102,780
|
$
|
(786
|
)
|
$
|
217,444
|
$
|
(4,306
|
)
|
$
|
320,224
|
$
|
(5,092
|
)
|
|||||||||
|
||||||||||||||||||||||||
Securities Held to Maturity:
|
||||||||||||||||||||||||
September 30, 2018
|
||||||||||||||||||||||||
SBA pools
|
$
|
-
|
$
|
-
|
$
|
7,151
|
$
|
(618
|
)
|
$
|
7,151
|
$
|
(618
|
)
|
||||||||||
Totals
|
$
|
-
|
$
|
-
|
$
|
7,151
|
$
|
(618
|
)
|
$
|
7,151
|
$
|
(618
|
)
|
||||||||||
|
||||||||||||||||||||||||
December 31, 2017
|
||||||||||||||||||||||||
SBA pools
|
$
|
-
|
$
|
-
|
$
|
7,369
|
$
|
(485
|
)
|
$
|
7,369
|
$
|
(485
|
)
|
||||||||||
Totals
|
$
|
-
|
$
|
-
|
$
|
7,369
|
$
|
(485
|
)
|
$
|
7,369
|
$
|
(485
|
)
|
|
Available for Sale
|
Held to Maturity
|
||||||||||||||
|
Amortized Cost
|
Fair Value
|
Amortized Cost
|
Fair Value
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
One year or less
|
$
|
201
|
$
|
200
|
$
|
-
|
$
|
-
|
||||||||
One to five years
|
71,007
|
68,699
|
-
|
-
|
||||||||||||
Five to ten years
|
3,209
|
3,189
|
-
|
-
|
||||||||||||
Over ten years
|
157,997
|
152,928
|
7,769
|
7,151
|
||||||||||||
Subtotal
|
232,414
|
225,016
|
7,769
|
7,151
|
||||||||||||
Residential mortgage backed securities
|
95,703
|
93,643
|
-
|
-
|
||||||||||||
Residential collateralized mortgage obligations
|
15,119
|
14,979
|
-
|
-
|
||||||||||||
Commercial mortgage backed securities
|
109,725
|
104,337
|
||||||||||||||
Total
|
$
|
452,961
|
$
|
437,975
|
$
|
7,769
|
$
|
7,151
|
|
September 30, 2018
|
December 31, 2017
|
||||||
|
(In thousands)
|
|||||||
Commercial
|
$
|
63,539
|
$
|
61,388
|
||||
Commercial real estate
|
404,790
|
378,802
|
||||||
Residential real estate
|
155,118
|
178,296
|
||||||
Construction real estate
|
72,550
|
63,569
|
||||||
Installment and other
|
9,998
|
18,952
|
||||||
Total loans
|
705,995
|
701,007
|
||||||
Unearned income
|
(1,171
|
)
|
(863
|
)
|
||||
Gross loans
|
704,824
|
700,144
|
||||||
Allowance for loan losses
|
(9,528
|
)
|
(13,803
|
)
|
||||
Net loans
|
$
|
695,296
|
$
|
686,341
|
|
Current
|
30-59 Days
Past Due
|
60-89 Days
Past Due
|
Loans Past Due
90 Days or More
|
Total
Past Due
|
Total
|
||||||||||||||||||
September 30, 2018
|
(In thousands)
|
|||||||||||||||||||||||
Commercial
|
$
|
63,512
|
$
|
27
|
$
|
-
|
$
|
-
|
$
|
27
|
$
|
63,539
|
||||||||||||
Commercial real estate
|
403,507
|
920
|
-
|
363
|
1,283
|
404,790
|
||||||||||||||||||
Residential real estate
|
151,872
|
1,811
|
266
|
1,169
|
3,246
|
155,118
|
||||||||||||||||||
Construction real estate
|
72,178
|
334
|
-
|
38
|
372
|
72,550
|
||||||||||||||||||
Installment and other
|
9,860
|
47
|
-
|
91
|
138
|
9,998
|
||||||||||||||||||
Total loans
|
$
|
700,929
|
$
|
3,139
|
$
|
266
|
$
|
1,661
|
$
|
5,066
|
$
|
705,995
|
||||||||||||
|
||||||||||||||||||||||||
Nonaccrual loan classification, included above
|
$
|
4,888
|
$
|
1,895
|
$
|
266
|
$
|
1,661
|
$
|
3,822
|
$
|
8,710
|
||||||||||||
|
||||||||||||||||||||||||
December 31, 2017
|
||||||||||||||||||||||||
Commercial
|
$
|
59,703
|
$
|
173
|
$
|
1,475
|
$
|
37
|
$
|
1,685
|
$
|
61,388
|
||||||||||||
Commercial real estate
|
371,640
|
5,490
|
-
|
1,672
|
7,162
|
378,802
|
||||||||||||||||||
Residential real estate
|
174,388
|
1,899
|
-
|
2,009
|
3,908
|
178,296
|
||||||||||||||||||
Construction real estate
|
59,291
|
423
|
74
|
3,781
|
4,278
|
63,569
|
||||||||||||||||||
Installment and other
|
18,705
|
80
|
81
|
86
|
247
|
18,952
|
||||||||||||||||||
Total loans
|
$
|
683,727
|
$
|
8,065
|
$
|
1,630
|
$
|
7,585
|
$
|
17,280
|
$
|
701,007
|
||||||||||||
|
||||||||||||||||||||||||
Nonaccrual loan classification, included above
|
$
|
3,858
|
$
|
5,859
|
$
|
38
|
$
|
7,585
|
$
|
13,482
|
$
|
17,340
|
|
September 30, 2018
|
December 31, 2017
|
||||||||||||||
|
Nonaccrual
|
Loans Past Due
90 Days or More
and Still Accruing Interest
|
Nonaccrual
|
Loans Past Due
90 Days or More
and Still Accruing Interest
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
Commercial
|
$
|
603
|
$
|
-
|
$
|
102
|
$
|
-
|
||||||||
Commercial real estate
|
3,717
|
-
|
8,617
|
-
|
||||||||||||
Residential real estate
|
4,125
|
-
|
4,599
|
-
|
||||||||||||
Construction real estate
|
165
|
-
|
3,911
|
-
|
||||||||||||
Installment and other
|
100
|
-
|
111
|
-
|
||||||||||||
Total
|
$
|
8,710
|
$
|
-
|
$
|
17,340
|
$
|
-
|
|
Pass
|
Special Mention
|
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
September 30, 2018
|
(In thousands)
|
|||||||||||||||||||
Commercial
|
$
|
58,035
|
$
|
3,779
|
$
|
1,725
|
$
|
-
|
$
|
63,539
|
||||||||||
Commercial real estate
|
384,653
|
3,592
|
16,545
|
-
|
404,790
|
|||||||||||||||
Residential real estate
|
149,033
|
663
|
5,422
|
-
|
155,118
|
|||||||||||||||
Construction real estate
|
71,549
|
876
|
125
|
-
|
72,550
|
|||||||||||||||
Installment and other
|
9,900
|
-
|
98
|
-
|
9,998
|
|||||||||||||||
Total
|
$
|
673,170
|
$
|
8,910
|
$
|
23,915
|
$
|
-
|
$
|
705,995
|
||||||||||
|
||||||||||||||||||||
December 31, 2017
|
||||||||||||||||||||
Commercial
|
$
|
58,769
|
$
|
2
|
$
|
2,617
|
$
|
-
|
$
|
61,388
|
||||||||||
Commercial real estate
|
359,768
|
4,762
|
14,272
|
-
|
378,802
|
|||||||||||||||
Residential real estate
|
172,101
|
-
|
6,195
|
-
|
178,296
|
|||||||||||||||
Construction real estate
|
56,661
|
917
|
5,991
|
-
|
63,569
|
|||||||||||||||
Installment and other
|
18,523
|
-
|
429
|
-
|
18,952
|
|||||||||||||||
Total
|
$
|
665,822
|
$
|
5,681
|
$
|
29,504
|
$
|
-
|
$
|
701,007
|
|
Pass
|
Special Mention
|
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
September 30, 2018
|
(In thousands)
|
|||||||||||||||||||
Current
|
$
|
671,996
|
$
|
8,910
|
$
|
20,023
|
$
|
-
|
$
|
700,929
|
||||||||||
Past due 30-59 days
|
1,174
|
-
|
1,965
|
-
|
3,139
|
|||||||||||||||
Past due 60-89 days
|
-
|
-
|
266
|
-
|
266
|
|||||||||||||||
Past due 90 days or more
|
-
|
-
|
1,661
|
-
|
1,661
|
|||||||||||||||
Total
|
$
|
673,170
|
$
|
8,910
|
$
|
23,915
|
$
|
-
|
$
|
705,995
|
||||||||||
|
||||||||||||||||||||
December 31, 2017
|
||||||||||||||||||||
Current
|
$
|
662,445
|
$
|
5,681
|
$
|
15,601
|
$
|
-
|
$
|
683,727
|
||||||||||
Past due 30-59 days
|
1,785
|
-
|
6,280
|
-
|
8,065
|
|||||||||||||||
Past due 60-89 days
|
1,592
|
-
|
38
|
-
|
1,630
|
|||||||||||||||
Past due 90 days or more
|
-
|
-
|
7,585
|
-
|
7,585
|
|||||||||||||||
Total
|
$
|
665,822
|
$
|
5,681
|
$
|
29,504
|
$
|
-
|
$
|
701,007
|
|
September 30, 2018
|
December 31, 2017
|
||||||||||||||||||||||
|
Unpaid
Principal
Balance
|
Recorded
Investment
|
Allowance
for Loan Losses
Allocated
|
Unpaid
Principal
Balance
|
Recorded
Investment
|
Allowance
for Loan Losses
Allocated
|
||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||||||
Commercial
|
$
|
110
|
$
|
110
|
$
|
184
|
$
|
182
|
||||||||||||||||
Commercial real estate
|
6,494
|
3,517
|
4,294
|
4,154
|
||||||||||||||||||||
Residential real estate
|
5,948
|
5,032
|
6,585
|
5,808
|
||||||||||||||||||||
Construction real estate
|
1,889
|
1,863
|
7,471
|
6,049
|
||||||||||||||||||||
Installment and other
|
293
|
292
|
349
|
348
|
||||||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||||||
Commercial
|
13,671
|
13,669
|
$
|
321
|
13,361
|
13,359
|
$
|
211
|
||||||||||||||||
Commercial real estate
|
5,870
|
5,870
|
851
|
10,987
|
10,987
|
3,735
|
||||||||||||||||||
Residential real estate
|
5,344
|
5,343
|
943
|
6,774
|
6,774
|
943
|
||||||||||||||||||
Construction real estate
|
1,161
|
1,161
|
42
|
3,244
|
3,244
|
231
|
||||||||||||||||||
Installment and other
|
240
|
240
|
34
|
236
|
236
|
32
|
||||||||||||||||||
Total
|
$
|
41,020
|
$
|
37,097
|
$
|
2,191
|
$
|
53,485
|
$
|
51,141
|
$
|
5,152
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||||||||||||||||||
|
September 30, 2018
|
September 30, 2017
|
September 30, 2018
|
September 30, 2017
|
||||||||||||||||||||||||||||
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
||||||||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||||||||||||||
Commercial
|
$
|
112
|
$
|
2
|
$
|
6,834
|
$
|
184
|
$
|
167
|
$
|
4
|
$
|
4,411
|
$
|
543
|
||||||||||||||||
Commercial real estate
|
3,241
|
27
|
5,133
|
99
|
5,231
|
80
|
5,084
|
295
|
||||||||||||||||||||||||
Residential real estate
|
5,033
|
32
|
4,712
|
54
|
6,962
|
94
|
4,586
|
162
|
||||||||||||||||||||||||
Construction real estate
|
3,330
|
22
|
7,397
|
104
|
6,046
|
66
|
7,189
|
308
|
||||||||||||||||||||||||
Installment and other
|
296
|
3
|
399
|
5
|
416
|
10
|
353
|
14
|
||||||||||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||||||||||||||
Commercial
|
13,487
|
210
|
7,547
|
22
|
17,866
|
622
|
10,741
|
66
|
||||||||||||||||||||||||
Commercial real estate
|
6,144
|
64
|
6,350
|
69
|
9,916
|
189
|
6,352
|
205
|
||||||||||||||||||||||||
Residential real estate
|
5,434
|
58
|
7,695
|
81
|
8,094
|
173
|
8,019
|
240
|
||||||||||||||||||||||||
Construction real estate
|
1,255
|
13
|
3,302
|
43
|
2,987
|
40
|
3,755
|
129
|
||||||||||||||||||||||||
Installment and other
|
239
|
2
|
289
|
2
|
319
|
6
|
347
|
7
|
||||||||||||||||||||||||
Total
|
$
|
38,571
|
$
|
433
|
$
|
49,658
|
$
|
663
|
$
|
58,004
|
$
|
1,284
|
$
|
50,837
|
$
|
1,969
|
|
Commercial
|
Commercial Real Estate
|
Residential Real Estate
|
Construction Real Estate
|
Installment and Other
|
Unallocated
|
Total
|
|||||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||||||
Three Months Ended September 30, 2018:
|
||||||||||||||||||||||||||||
Beginning balance
|
$
|
543
|
$
|
6,583
|
$
|
2,151
|
$
|
732
|
$
|
131
|
$
|
304
|
$
|
10,444
|
||||||||||||||
Provision (benefit) for loan losses
|
6
|
(768
|
)
|
(86
|
)
|
15
|
(30
|
)
|
(137
|
)
|
(1,000
|
)
|
||||||||||||||||
Charge-offs
|
(1
|
)
|
-
|
(65
|
)
|
-
|
(21
|
)
|
-
|
(87
|
)
|
|||||||||||||||||
Recoveries
|
25
|
12
|
102
|
4
|
28
|
-
|
171
|
|||||||||||||||||||||
Net recoveries (charge-offs)
|
24
|
12
|
37
|
4
|
7
|
-
|
84
|
|||||||||||||||||||||
Ending balance
|
$
|
573
|
$
|
5,827
|
$
|
2,102
|
$
|
751
|
$
|
108
|
$
|
167
|
$
|
9,528
|
||||||||||||||
|
||||||||||||||||||||||||||||
Three Months Ended September 30, 2017:
|
||||||||||||||||||||||||||||
Beginning balance
|
$
|
1,377
|
$
|
6,205
|
$
|
3,805
|
$
|
1,117
|
$
|
635
|
$
|
28
|
$
|
13,167
|
||||||||||||||
Provision (benefit) for loan losses
|
(297
|
)
|
461
|
(117
|
)
|
1,731
|
(2,073
|
)
|
45
|
(250
|
)
|
|||||||||||||||||
Charge-offs
|
(7
|
)
|
(612
|
)
|
-
|
(1,385
|
)
|
(19
|
)
|
-
|
(2,023
|
)
|
||||||||||||||||
Recoveries
|
56
|
88
|
125
|
37
|
2,000
|
-
|
2,306
|
|||||||||||||||||||||
Net recoveries (charge-offs)
|
49
|
(524
|
)
|
125
|
(1,348
|
)
|
1,981
|
-
|
283
|
|||||||||||||||||||
Ending balance
|
$
|
1,129
|
$
|
6,142
|
$
|
3,813
|
$
|
1,500
|
$
|
543
|
$
|
73
|
$
|
13,200
|
||||||||||||||
|
||||||||||||||||||||||||||||
Nine Months Ended September 30, 2018:
|
||||||||||||||||||||||||||||
Beginning balance
|
$
|
536
|
$
|
8,573
|
$
|
2,843
|
$
|
1,030
|
$
|
315
|
$
|
506
|
$
|
13,803
|
||||||||||||||
Provision (benefit) for loan losses
|
98
|
(62
|
)
|
(799
|
)
|
(120
|
)
|
(258
|
)
|
(339
|
)
|
(1,480
|
)
|
|||||||||||||||
Charge-offs
|
(134
|
)
|
(2,736
|
)
|
(184
|
)
|
(212
|
)
|
(76
|
)
|
-
|
(3,342
|
)
|
|||||||||||||||
Recoveries
|
73
|
52
|
242
|
53
|
127
|
-
|
547
|
|||||||||||||||||||||
Net recoveries (charge-offs)
|
(61
|
)
|
(2,684
|
)
|
58
|
(159
|
)
|
51
|
-
|
(2,795
|
)
|
|||||||||||||||||
Ending balance
|
$
|
573
|
$
|
5,827
|
$
|
2,102
|
$
|
751
|
$
|
108
|
$
|
167
|
$
|
9,528
|
||||||||||||||
Nine Months Ended September 30, 2017:
|
||||||||||||||||||||||||||||
Beginning balance
|
$
|
1,449
|
$
|
6,472
|
$
|
4,524
|
$
|
1,119
|
$
|
715
|
$
|
73
|
$
|
14,352
|
||||||||||||||
Provision (benefit) for loan losses
|
(356
|
)
|
123
|
(626
|
)
|
1,739
|
(2,100
|
)
|
-
|
(1,220
|
)
|
|||||||||||||||||
Charge-offs
|
(270
|
)
|
(639
|
)
|
(309
|
)
|
(1,409
|
)
|
(253
|
)
|
-
|
(2,880
|
)
|
|||||||||||||||
Recoveries
|
306
|
186
|
224
|
51
|
2,181
|
-
|
2,948
|
|||||||||||||||||||||
Net recoveries (charge-offs)
|
36
|
(453
|
)
|
(85
|
)
|
(1,358
|
)
|
1,928
|
-
|
68
|
||||||||||||||||||
Ending balance
|
$
|
1,129
|
$
|
6,142
|
$
|
3,813
|
$
|
1,500
|
$
|
543
|
$
|
73
|
$
|
13,200
|
||||||||||||||
|
Commercial
|
Commercial Real Estate
|
Residential Real Estate
|
Construction Real Estate
|
Installment and Other
|
Unallocated
|
Total
|
|||||||||||||||||||||
September 30, 2018
|
(In thousands)
|
|||||||||||||||||||||||||||
Allowance for loan losses allocated to:
|
||||||||||||||||||||||||||||
Loans individually evaluated for impairment
|
$
|
321
|
$
|
851
|
$
|
943
|
$
|
42
|
$
|
34
|
$
|
-
|
$
|
2,191
|
||||||||||||||
Loans collectively evaluated for impairment
|
252
|
4,976
|
1,159
|
709
|
74
|
167
|
7,337
|
|||||||||||||||||||||
Ending balance
|
$
|
573
|
$
|
5,827
|
$
|
2,102
|
$
|
751
|
$
|
108
|
$
|
167
|
$
|
9,528
|
||||||||||||||
Loans:
|
||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
13,779
|
$
|
9,387
|
$
|
10,375
|
$
|
3,024
|
$
|
532
|
$
|
-
|
$
|
37,097
|
||||||||||||||
Collectively evaluated for impairment
|
49,760
|
395,403
|
144,743
|
69,526
|
9,466
|
-
|
668,898
|
|||||||||||||||||||||
Total ending loans balance
|
$
|
63,539
|
$
|
404,790
|
$
|
155,118
|
$
|
72,550
|
$
|
9,998
|
$
|
-
|
$
|
705,995
|
||||||||||||||
|
||||||||||||||||||||||||||||
December 31, 2017
|
||||||||||||||||||||||||||||
Allowance for loan losses allocated to:
|
||||||||||||||||||||||||||||
Loans individually evaluated for impairment
|
$
|
211
|
$
|
3,735
|
$
|
943
|
$
|
231
|
$
|
32
|
$
|
-
|
$
|
5,152
|
||||||||||||||
Loans collectively evaluated for impairment
|
325
|
4,838
|
1,900
|
799
|
283
|
506
|
8,651
|
|||||||||||||||||||||
Ending balance
|
$
|
536
|
$
|
8,573
|
$
|
2,843
|
$
|
1,030
|
$
|
315
|
$
|
506
|
$
|
13,803
|
||||||||||||||
Loans:
|
||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
13,541
|
$
|
15,141
|
$
|
12,582
|
$
|
9,293
|
$
|
584
|
$
|
-
|
$
|
51,141
|
||||||||||||||
Collectively evaluated for impairment
|
47,847
|
363,661
|
165,714
|
54,276
|
18,368
|
-
|
649,866
|
|||||||||||||||||||||
Total ending loans balance
|
$
|
61,388
|
$
|
378,802
|
$
|
178,296
|
$
|
63,569
|
$
|
18,952
|
$
|
-
|
$
|
701,007
|
Nine Months Ended September 30, 2018
|
||||||||||||||||
|
Number of
Contracts
|
Pre-Modification
Outstanding
Recorded Investment
|
Post-Modification
Outstanding
Recorded Investment
|
Specific
Reserves Allocated
|
||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Commercial
|
3
|
$
|
335
|
$
|
335
|
$
|
26
|
|||||||||
Commercial real estate
|
2
|
2,356
|
2,356
|
-
|
||||||||||||
Residential real estate
|
2
|
237
|
237
|
-
|
||||||||||||
Total
|
7
|
$
|
2,928
|
$
|
2,928
|
$
|
26
|
Three Months Ended September 30, 2017
|
||||||||||||||||
|
Number of
Contracts
|
Pre-Modification
Outstanding
Recorded Investment
|
Post-Modification
Outstanding
Recorded Investment
|
Specific
Reserves Allocated
|
||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Commercial
|
2
|
$
|
105
|
$
|
105
|
$
|
29
|
|||||||||
Total
|
2
|
$
|
105
|
$
|
105
|
$
|
29
|
Nine Months Ended September 30, 2017
|
||||||||||||||||
|
Number of
Contracts
|
Pre-Modification
Outstanding
Recorded Investment
|
Post-Modification
Outstanding
Recorded Investment
|
Specific
Reserves Allocated
|
||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Commercial
|
4
|
$
|
135
|
$
|
135
|
$
|
30
|
|||||||||
Residential real estate
|
2
|
187
|
187
|
-
|
||||||||||||
Construction real estate
|
1
|
10
|
10
|
-
|
||||||||||||
Total
|
7
|
$
|
332
|
$
|
332
|
$
|
30
|
Nine Months Ended September 30, 2018
|
||||||||||||
|
Number of
Contracts
|
Pre-Modification
Outstanding
Recorded Investment
|
Specific
Reserves Allocated
|
|||||||||
(Dollars in thousands)
|
||||||||||||
Residential real estate
|
1
|
$
|
145
|
$
|
-
|
|||||||
Total
|
1
|
$
|
145
|
$
|
-
|
Three Months Ended September 30, 2017
|
||||||||||||
|
Number of
Contracts
|
Pre-Modification
Outstanding
Recorded Investment
|
Specific
Reserves Allocated
|
|||||||||
(Dollars in thousands)
|
||||||||||||
Construction real estate
|
1
|
$
|
61
|
$
|
-
|
|||||||
Total
|
1
|
$
|
61
|
$
|
-
|
Nine Months Ended September 30, 2017
|
||||||||||||
|
Number of
Contracts
|
Pre-Modification
Outstanding
Recorded Investment
|
Specific
Reserves Allocated
|
|||||||||
(Dollars in thousands)
|
||||||||||||
Construction real estate
|
2
|
$
|
807
|
$
|
10
|
|||||||
Total
|
2
|
$
|
807
|
$
|
10
|
|
September 30, 2018
|
December 31, 2017
|
||||||||||||||
|
Number of Contracts
|
Amount
|
Number of Contracts
|
Amount
|
||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Accrual
|
98
|
$
|
28,387
|
$
|
108
|
$
|
33,801
|
|||||||||
Nonaccrual
|
16
|
3,250
|
19
|
5,146
|
||||||||||||
Total
|
114
|
$
|
31,637
|
$
|
127
|
$
|
38,947
|
|
September 30, 2018
|
December 31, 2017
|
||||||
|
(In thousands)
|
|||||||
Balance, beginning
|
$
|
198
|
$
|
348
|
||||
Additions
|
-
|
13
|
||||||
Changes in composition
|
-
|
(76
|
)
|
|||||
Principal payments and other reductions
|
(56
|
)
|
(87
|
)
|
||||
Balance, ending
|
$
|
142
|
$
|
198
|
|
September 30, 2018
|
December 31, 2017
|
||||||
|
(In thousands)
|
|||||||
Commercial real estate
|
$
|
2,308
|
$
|
1,667
|
||||
Residential real estate
|
468
|
886
|
||||||
Construction real estate
|
3,206
|
3,879
|
||||||
Total
|
$
|
5,982
|
$
|
6,432
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
|
2018
|
2017
|
2018
|
2017
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
Balance at beginning of period
|
$
|
5,870
|
$
|
7,085
|
$
|
6,432
|
$
|
8,436
|
||||||||
Transfers in at fair value
|
746
|
2,154
|
1,467
|
2,848
|
||||||||||||
Capitalized improvements
|
-
|
-
|
43
|
-
|
||||||||||||
Write-down of value
|
-
|
(29
|
)
|
(46
|
)
|
(615
|
)
|
|||||||||
Gain on disposal
|
189
|
124
|
759
|
781
|
||||||||||||
Cash received upon disposition
|
(823
|
)
|
(1,135
|
)
|
(2,358
|
)
|
(3,251
|
)
|
||||||||
Sales financed by loans by the Bank
|
-
|
-
|
(315
|
)
|
-
|
|||||||||||
Balance at end of period
|
$
|
5,982
|
$
|
8,199
|
$
|
5,982
|
$
|
8,199
|
|
September 30, 2018
|
December 31, 2017
|
||||||
|
(In thousands )
|
|||||||
Demand deposits, noninterest bearing
|
$
|
175,655
|
$
|
161,677
|
||||
NOW
|
376,405
|
385,881
|
||||||
Money market accounts
|
18,976
|
18,344
|
||||||
Savings deposits
|
379,213
|
388,300
|
||||||
Time certificates, $250,000 or more
|
19,831
|
21,639
|
||||||
Other time certificates
|
127,333
|
151,506
|
||||||
Total
|
$
|
1,097,413
|
$
|
1,127,347
|
Maturity Date
|
Rate
|
Type
|
Principal Due
|
September 30, 2018
|
December 31, 2017
|
|||||||||
|
|
|
(In thousands)
|
|||||||||||
October 1, 2018
|
2.450
|
%
|
Variable
|
At maturity
|
$
|
13,100
|
$
|
-
|
||||||
April 27, 2021
|
6.343
|
%
|
Fixed
|
At maturity
|
2,300
|
2,300
|
||||||||
|
|
Total
|
$
|
15,400
|
$
|
2,300
|
Trust III
|
Trust IV
|
Trust V
|
||||||||||
(dollars in thousands)
|
||||||||||||
Date of Issue
|
May 11, 2004
|
June 29, 2005
|
September 21, 2006
|
|||||||||
Amount of trust preferred securities issued
|
$
|
6,000
|
$
|
10,000
|
$
|
10,000
|
||||||
Rate on trust preferred securities
|
5.02125% (variable)
|
6.88000
|
%
|
3.98413% (variable)
|
||||||||
Maturity
|
September 8, 2034
|
November 23, 2035
|
December 15, 2036
|
|||||||||
Date of first redemption
|
September 8, 2009
|
August 23, 2010
|
September 15, 2011
|
|||||||||
Common equity securities issued
|
$
|
186
|
$
|
310
|
$
|
310
|
||||||
Junior subordinated deferrable interest debentures owed
|
$
|
6,186
|
$
|
10,310
|
$
|
10,310
|
||||||
Rate on junior subordinated deferrable interest debentures
|
5.02125% (variable)
|
6.88000
|
%
|
3.98413% (variable)
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
|
2018
|
2018
|
||||||||||||||
|
(In thousands)
|
|||||||||||||||
Federal statutory tax rate
|
$
|
1,013
|
21
|
%
|
$
|
2,538
|
21
|
%
|
||||||||
State income tax, net of federal benefit
|
196
|
4
|
%
|
476
|
4
|
%
|
||||||||||
Net tax exempt interest income
|
(210
|
)
|
(4
|
)%
|
(631
|
)
|
(5
|
)%
|
||||||||
Other, net
|
(43
|
)
|
(1
|
)%
|
(151
|
)
|
(1
|
)%
|
||||||||
Tax provision before change in valuation allowance
|
956
|
20
|
%
|
2,232
|
18
|
%
|
||||||||||
Change in valuation allowance
|
347
|
7
|
%
|
347
|
3
|
%
|
||||||||||
Provision for income taxes
|
$
|
1,303
|
27
|
%
|
$
|
2,579
|
21
|
%
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
|
2017
|
2017
|
||||||||||||||
|
(In thousands)
|
|||||||||||||||
Federal statutory tax rate
|
$
|
613
|
34
|
%
|
$
|
613
|
34
|
%
|
||||||||
State income tax, net of federal benefit
|
66
|
4
|
%
|
235
|
13
|
%
|
||||||||||
Net tax exempt interest income
|
(108
|
)
|
(6
|
)%
|
(372
|
)
|
(21
|
)%
|
||||||||
Other, net
|
(73
|
)
|
(4
|
)%
|
998
|
56
|
%
|
|||||||||
Tax provision before change in valuation allowance
|
498
|
28
|
%
|
1,474
|
82
|
%
|
||||||||||
Change in valuation allowance
|
900
|
50
|
%
|
2,013
|
112
|
%
|
||||||||||
Provision for income taxes
|
$
|
1,398
|
78
|
%
|
$
|
3,487
|
194
|
%
|
|
Contract Amount
|
|||||||
|
September 30, 2018
|
December 31, 2017
|
||||||
|
(In thousands)
|
|||||||
Unfunded commitments under lines of credit
|
$
|
132,886
|
$
|
122,910
|
||||
Commercial and standby letters of credit
|
3,798
|
5,377
|
||||||
Commitments to make loans
|
18,750
|
1,909
|
|
September 30, 2018
|
December 31, 2017
|
||||||
|
(In thousands)
|
|||||||
Fixed rate
|
$
|
30,092
|
$
|
17,933
|
||||
Adjustable rate
|
106,592
|
110,354
|
||||||
Total
|
$
|
136,684
|
$
|
128,287
|
|
Shares
|
Weighted Average
Grant Price
|
Weighted Average
Remaining Contractual
Term, in Years
|
Aggregate
Intrinsic Value
(in thousands)
|
||||||||||||
RSUs
|
||||||||||||||||
Nonvested as of January 1, 2018
|
452,782
|
$
|
4.70
|
2.01
|
$
|
2,128
|
||||||||||
Granted
|
312,775
|
7.66
|
1.25
|
2,396
|
||||||||||||
Vested
|
(40,575
|
)
|
4.61
|
-
|
(187
|
)
|
||||||||||
Forfeited or expired
|
(10,250
|
)
|
5.21
|
-
|
(53
|
)
|
||||||||||
Outstanding Nonvested as of June 30, 2018
|
714,732
|
$
|
6.00
|
1.22
|
$
|
4,284
|
Total
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
September 30, 2018
|
(In thousands)
|
|||||||||||||||
Financial Assets:
|
||||||||||||||||
Investment securities available for sale:
|
||||||||||||||||
U.S. government sponsored agencies
|
$
|
67,004
|
$
|
-
|
$
|
67,004
|
$
|
-
|
||||||||
States and political subdivision
|
157,544
|
-
|
157,544
|
-
|
||||||||||||
Residential mortgage backed securities
|
93,643
|
-
|
93,643
|
-
|
||||||||||||
Residential collateralized mortgage obligation
|
14,979
|
-
|
14,979
|
-
|
||||||||||||
Commercial mortgage backed securities
|
104,337
|
-
|
104,337
|
-
|
||||||||||||
SBA pools
|
468
|
-
|
468
|
-
|
||||||||||||
Total
|
$
|
437,975
|
$
|
-
|
$
|
437,975
|
$
|
-
|
Total
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
December 31, 2017
|
(In thousands)
|
|||||||||||||||
Financial Assets:
|
||||||||||||||||
Investment securities available for sale:
|
||||||||||||||||
U.S. government sponsored agencies
|
$
|
68,551
|
$
|
-
|
$
|
68,551
|
$
|
-
|
||||||||
States and political subdivision
|
158,706
|
-
|
158,706
|
-
|
||||||||||||
Residential mortgage backed securities
|
123,083
|
-
|
123,083
|
-
|
||||||||||||
Residential collateralized mortgage obligation
|
9,686
|
-
|
9,686
|
-
|
||||||||||||
Commercial mortgage backed securities
|
108,162
|
-
|
108,162
|
-
|
||||||||||||
SBA pools
|
545
|
-
|
545
|
-
|
||||||||||||
Total
|
$
|
468,733
|
$
|
-
|
$
|
468,733
|
$
|
-
|
`
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
September 30, 2018
|
||||||||||||||||
Financial Assets
|
||||||||||||||||
Impaired loans
|
$
|
24,092
|
$
|
-
|
$
|
-
|
$
|
24,092
|
||||||||
Non-Financial Assets
|
||||||||||||||||
OREO
|
222
|
-
|
-
|
222
|
||||||||||||
|
||||||||||||||||
December 31, 2017
|
||||||||||||||||
Financial Assets
|
||||||||||||||||
Impaired loans
|
$
|
34,600
|
$
|
-
|
$
|
-
|
$
|
34,600
|
||||||||
Non-Financial Assets
|
||||||||||||||||
OREO
|
405
|
-
|
-
|
405
|
|
Fair Value
|
Valuation Technique(s)
|
Unobservable Input(s)
|
Adjustment Range,
Weighted Average
|
|||
September 30, 2018
|
(In thousands)
|
|
|
|
|||
Impaired loans
|
|
|
|
||||
Commercial
|
$
|
13,348
|
Sales comparison
|
Adjustments for differences of comparable sales
|
(5.00)% to (150.00)%, (7.32)%
|
||
Commercial real estate
|
5,019
|
Sales comparison
|
Adjustments for differences of comparable sales
|
(5.50) to (37.50), (7.16)
|
|||
Residential real estate
|
4,400
|
Sales comparison
|
Adjustments for differences of comparable sales
|
(3.13) to (37.50), (7.29)
|
|||
Construction real estate
|
1,119
|
Sales comparison
|
Adjustments for differences of comparable sales
|
(4.00) to (40.00), (5.97)
|
|||
Installment and other
|
206
|
Sales comparison
|
Adjustments for differences of comparable sales
|
(4.13) to (37.50), (7.34)
|
|||
Total impaired loans
|
$
|
24,092
|
|
|
|
||
OREO
|
|||||||
Commercial real estate
|
74
|
Sales comparison
|
Adjustments for differences of comparable sales
|
(33.33)% to (33.33)%, (33.33)%
|
|||
Residential real estate
|
148
|
Sales comparison
|
Adjustments for differences of comparable sales
|
(3.16)% to (3.16)%, (3.16)%
|
|||
Total OREO
|
$
|
222
|
December 31, 2017
|
|
|
|
||||
Impaired loans
|
|
|
|
||||
Commercial
|
$
|
13,359
|
Sales comparison
|
Adjustments for differences of comparable sales
|
(5.00)% to (100.00)%, (5.97)%
|
||
Commercial real estate
|
10,987
|
Sales comparison
|
Adjustments for differences of comparable sales
|
(4.25) to (7.62), (6.63)
|
|||
Residential real estate
|
6,774
|
Sales comparison
|
Adjustments for differences of comparable sales
|
(3.13) to (7.80), (5.74)
|
|||
Construction real estate
|
3,244
|
Sales comparison
|
Adjustments for differences of comparable sales
|
(4.00) to (7.25), (6.18)
|
|||
Installment and other
|
236
|
Sales comparison
|
Adjustments for differences of comparable sales
|
(4.25) to (8.00), (6.27)
|
|||
Total impaired loans
|
$
|
34,600
|
|
|
|
||
OREO
|
|
|
|
||||
Residential real estate
|
$
|
315
|
Sales comparison
|
Adjustments for differences of comparable sales
|
(9.09) to (9.09), (9.09)
|
||
Construction real estate
|
90
|
Sales comparison
|
Adjustments for differences of comparable sales
|
(9.78) to (9.78), (9.78)
|
|||
Total OREO
|
$
|
405
|
|
|
|
|
Carrying Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||||
|
(In thousands)
|
|||||||||||||||||||
September 30, 2018
|
||||||||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and due from banks
|
$
|
11,046
|
$
|
11,046
|
$
|
-
|
$
|
-
|
$
|
11,046
|
||||||||||
Interest-bearing deposits with banks
|
3,645
|
3,645
|
-
|
-
|
3,645
|
|||||||||||||||
Investments:
|
||||||||||||||||||||
Available for sale
|
437,975
|
-
|
437,976
|
-
|
437,976
|
|||||||||||||||
Held to maturity
|
7,769
|
-
|
7,151
|
-
|
7,151
|
|||||||||||||||
Non-marketable equity securities
|
5,819
|
N/A
|
N/A
|
N/A
|
N/A
|
|||||||||||||||
Loans held for sale
|
6,815
|
-
|
6,815
|
-
|
6,815
|
|||||||||||||||
Loans, net
|
695,296
|
-
|
-
|
690,610
|
690,610
|
|||||||||||||||
Accrued interest receivable on securities
|
2,632
|
-
|
2,632
|
-
|
2,632
|
|||||||||||||||
Accrued interest receivable on loans
|
2,246
|
-
|
-
|
2,246
|
2,246
|
|||||||||||||||
Accrued interest receivable other
|
5
|
-
|
-
|
5
|
5
|
|||||||||||||||
|
||||||||||||||||||||
Off-balance-sheet instruments:
|
||||||||||||||||||||
Loan commitments and standby letters of credit
|
$
|
27
|
$
|
-
|
$
|
27
|
$
|
-
|
$
|
27
|
||||||||||
|
||||||||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Non-interest bearing deposits
|
$
|
175,655
|
$
|
175,655
|
$
|
-
|
$
|
-
|
$
|
175,655
|
||||||||||
Interest bearing deposits
|
921,758
|
-
|
919,644
|
-
|
919,644
|
|||||||||||||||
Borrowings
|
15,400
|
-
|
15,591
|
-
|
15,591
|
|||||||||||||||
Junior subordinated debt
|
26,766
|
-
|
-
|
17,750
|
17,750
|
|||||||||||||||
Accrued interest payable
|
284
|
-
|
175
|
109
|
284
|
December 31, 2017
|
||||||||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and due from banks
|
$
|
12,893
|
$
|
12,983
|
$
|
-
|
$
|
-
|
$
|
12,983
|
||||||||||
Interest-bearing deposits with banks
|
22,541
|
22,541
|
-
|
-
|
22,541
|
|||||||||||||||
Securities purchased under resell agreements
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Investments:
|
||||||||||||||||||||
Available for sale
|
468,733
|
-
|
468,733
|
-
|
468,733
|
|||||||||||||||
Held to maturity
|
7,854
|
-
|
7,369
|
-
|
7,369
|
|||||||||||||||
Non-marketable equity securities
|
3,617
|
N/A
|
N/A
|
N/A
|
N/A
|
|||||||||||||||
Loans, net
|
686,341
|
-
|
-
|
680,911
|
680,911
|
|||||||||||||||
Accrued interest receivable on securities
|
2,795
|
-
|
2,795
|
-
|
2,795
|
|||||||||||||||
Accrued interest receivable on loans
|
2,238
|
-
|
-
|
2,238
|
2,238
|
|||||||||||||||
Accrued interest receivable other
|
21
|
-
|
-
|
21
|
21
|
|||||||||||||||
|
||||||||||||||||||||
Off-balance-sheet instruments:
|
||||||||||||||||||||
Loan commitments and standby letters of credit
|
$
|
23
|
$
|
-
|
$
|
23
|
$
|
-
|
$
|
23
|
||||||||||
|
||||||||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Non-interest bearing deposits
|
$
|
161,677
|
$
|
161,677
|
$
|
-
|
$
|
-
|
$
|
161,677
|
||||||||||
Interest bearing deposits
|
965,670
|
-
|
964,717
|
-
|
964,717
|
|||||||||||||||
Long-term borrowings
|
2,300
|
-
|
2,592
|
-
|
2,592
|
|||||||||||||||
Junior subordinated debt
|
37,116
|
-
|
-
|
27,128
|
27,128
|
|||||||||||||||
Accrued interest payable
|
628
|
-
|
172
|
456
|
628
|
|
Actual
|
For Capital
Adequacy Purposes
|
To be Well Capitalized Under
Prompt Corrective Action Provisions
|
|||||||||||||||||||||
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
September 30, 2018
|
||||||||||||||||||||||||
Total capital (to risk-weighted assets):
|
||||||||||||||||||||||||
Consolidated
|
$
|
151,865
|
17.5493
|
%
|
$
|
69,229
|
8.00
|
%
|
N/A
|
N/A
|
||||||||||||||
Bank only
|
146,106
|
16.9333
|
%
|
69,027
|
8.00
|
%
|
$
|
86,283
|
10.00
|
%
|
||||||||||||||
Tier 1 capital (to risk weighted assets):
|
||||||||||||||||||||||||
Consolidated
|
142,186
|
16.4308
|
%
|
51,922
|
6.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank only
|
136,427
|
15.8115
|
%
|
51,770
|
6.00
|
%
|
69,027
|
8.00
|
%
|
|||||||||||||||
Common Equity Tier 1 Capital (to risk weighted assets):
|
||||||||||||||||||||||||
Consolidated
|
116,952
|
13.5148
|
%
|
38,941
|
4.50
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank only
|
136,427
|
15.8115
|
%
|
38,827
|
4.50
|
%
|
56,084
|
6.50
|
%
|
|||||||||||||||
Tier 1 leverage (to average assets):
|
||||||||||||||||||||||||
Consolidated
|
142,186
|
11.2026
|
%
|
50,769
|
4.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank only
|
136,427
|
10.7753
|
%
|
50,644
|
4.00
|
%
|
63,306
|
5.00
|
%
|
|
Actual
|
For Capital
Adequacy Purposes
|
To be Well Capitalized Under
Prompt Corrective Action Provisions
|
|||||||||||||||||||||
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
December 31, 2017
|
||||||||||||||||||||||||
Total capital (to risk-weighted assets):
|
||||||||||||||||||||||||
Consolidated
|
$
|
152,076
|
18.1982
|
%
|
$
|
66,853
|
8.00
|
%
|
N/A
|
N/A
|
||||||||||||||
Bank only
|
134,959
|
16.1823
|
%
|
66,720
|
8.00
|
%
|
$
|
83,399
|
10.00
|
%
|
||||||||||||||
Tier 1 capital (to risk weighted assets):
|
||||||||||||||||||||||||
Consolidated
|
132,900
|
15.9035
|
%
|
50,140
|
6.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank only
|
124,481
|
14.9259
|
%
|
50,040
|
6.00
|
%
|
66,720
|
8.00
|
%
|
|||||||||||||||
Common Equity Tier 1 Capital (to risk weighted assets):
|
||||||||||||||||||||||||
Consolidated
|
106,320
|
12.7228
|
%
|
37,605
|
4.50
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank only
|
124,481
|
14.9259
|
%
|
37,530
|
4.50
|
%
|
54,210
|
6.50
|
%
|
|||||||||||||||
Tier 1 leverage (to average assets):
|
||||||||||||||||||||||||
Consolidated
|
132,900
|
10.1821
|
%
|
33,427
|
4.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank only
|
124,481
|
9.6006
|
%
|
33,360
|
4.00
|
%
|
41,700
|
5.00
|
%
|
|
Three Months Ended September 30,
|
|||||||||||||||||||||||
|
2018
|
2017
|
||||||||||||||||||||||
|
Average Balance
|
Interest
|
Yield/Rate
|
Average Balance
|
Interest
|
Yield/Rate
|
||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||
Interest-earning Assets:
|
||||||||||||||||||||||||
Loans held for sale
|
$
|
6,804
|
$
|
125
|
7.30
|
%
|
$
|
-
|
$
|
-
|
-
|
|||||||||||||
Loans (1)
|
704,210
|
8,534
|
4.82
|
%
|
742,994
|
9,016
|
4.83
|
%
|
||||||||||||||||
Taxable investment securities
|
305,431
|
1,506
|
1.97
|
%
|
340,534
|
1,665
|
1.96
|
%
|
||||||||||||||||
Investment securities exempt from federal income taxes
|
163,077
|
1,042
|
2.56
|
%
|
81,246
|
506
|
2.49
|
%
|
||||||||||||||||
Other interest-bearing deposits
|
3,668
|
19
|
2.00
|
%
|
71,813
|
222
|
1.23
|
%
|
||||||||||||||||
Non-marketable equity securities
|
5,121
|
59
|
4.55
|
%
|
3,975
|
53
|
5.31
|
%
|
||||||||||||||||
Total interest-earning assets
|
1,188,311
|
11,285
|
3.78
|
%
|
1,240,562
|
11,462
|
3.68
|
%
|
||||||||||||||||
Non-interest-earning assets
|
74,407
|
68,684
|
||||||||||||||||||||||
Total assets
|
$
|
1,262,718
|
$
|
1,309,246
|
||||||||||||||||||||
Interest-bearing Liabilities:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
NOW deposits
|
$
|
376,374
|
$
|
64
|
0.07
|
%
|
$
|
375,275
|
$
|
62
|
0.07
|
%
|
||||||||||||
Money market deposits
|
19,466
|
4
|
0.09
|
%
|
17,480
|
4
|
0.09
|
%
|
||||||||||||||||
Savings deposits
|
379,479
|
75
|
0.08
|
%
|
401,057
|
81
|
0.08
|
%
|
||||||||||||||||
Time deposits over $100,000
|
77,915
|
161
|
0.82
|
%
|
99,290
|
176
|
0.70
|
%
|
||||||||||||||||
Time deposits under $100,000
|
73,683
|
120
|
0.65
|
%
|
88,469
|
109
|
0.49
|
%
|
||||||||||||||||
Short-term borrowings
|
15,895
|
94
|
2.37
|
%
|
-
|
-
|
-
|
|||||||||||||||||
Long-term borrowings
|
2,300
|
37
|
6.34
|
%
|
2,300
|
37
|
6.34
|
%
|
||||||||||||||||
Long-term capital lease obligation
|
-
|
-
|
0.00
|
%
|
-
|
-
|
0.00
|
%
|
||||||||||||||||
Junior subordinated debt
|
26,765
|
363
|
5.30
|
%
|
36,934
|
599
|
6.36
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
971,877
|
918
|
0.37
|
%
|
1,020,805
|
1,068
|
0.41
|
%
|
||||||||||||||||
Demand deposits, noninterest-bearing
|
176,270
|
171,882
|
||||||||||||||||||||||
Other noninterest-bearing liabilities
|
6,185
|
13,073
|
||||||||||||||||||||||
|
||||||||||||||||||||||||
Stockholders' equity, including stock owned by ESOP
|
108,386
|
103,486
|
||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$
|
1,262,718
|
$
|
1,309,246
|
||||||||||||||||||||
Net interest income/interest rate spread (2)
|
$
|
10,367
|
3.41
|
%
|
$
|
10,394
|
3.27
|
%
|
||||||||||||||||
Net interest margin (3)
|
3.44
|
%
|
3.34
|
%
|
(1) |
Average loans include nonaccrual loans of $7.3 million and $13.8 million for the three months ended September 30, 2018 and 2017, respectively. Interest income includes loan origination fees of $93 thousand and $195 thousand for the three months ended September 30, 2018 and 2017, respectively.
|
(2) |
Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.
|
(3) |
Net interest margin represents net interest income as a percentage of average interest-earning assets.
|
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||
|
2018
|
2017
|
||||||||||||||||||||||
|
Average Balance
|
Interest
|
Yield/Rate
|
Average Balance
|
Interest
|
Yield/Rate
|
||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||
Interest-earning Assets:
|
||||||||||||||||||||||||
Loans held for sale
|
$
|
3,082
|
$
|
167
|
7.26
|
%
|
$
|
-
|
$
|
-
|
-
|
|||||||||||||
Loans (1)
|
702,589
|
25,272
|
4.80
|
%
|
763,657
|
27,613
|
4.83
|
%
|
||||||||||||||||
Taxable investment securities
|
317,152
|
4,562
|
1.92
|
%
|
387,713
|
5,143
|
1.77
|
%
|
||||||||||||||||
Investment securities exempt from federal income taxes
|
163,145
|
3,127
|
2.56
|
%
|
59,398
|
1,085
|
2.44
|
%
|
||||||||||||||||
Other interest-bearing deposits
|
6,782
|
92
|
1.79
|
%
|
47,984
|
406
|
1.13
|
%
|
||||||||||||||||
Non-marketable equity securities
|
4,709
|
164
|
4.66
|
%
|
3,997
|
161
|
5.39
|
%
|
||||||||||||||||
Total interest-earning assets
|
1,197,459
|
33,384
|
3.72
|
%
|
1,262,749
|
34,408
|
3.64
|
%
|
||||||||||||||||
Non-interest-earning assets
|
74,397
|
66,868
|
||||||||||||||||||||||
Total assets
|
$
|
1,271,856
|
$
|
1,329,617
|
||||||||||||||||||||
Interest-bearing Liabilities:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
NOW deposits
|
$
|
385,956
|
$
|
197
|
0.07
|
%
|
$
|
387,986
|
$
|
189
|
0.07
|
%
|
||||||||||||
Money market deposits
|
19,492
|
13
|
0.09
|
%
|
17,333
|
12
|
0.09
|
%
|
||||||||||||||||
Savings deposits
|
382,977
|
226
|
0.08
|
%
|
405,933
|
245
|
0.08
|
%
|
||||||||||||||||
Time deposits over $100,000
|
82,399
|
476
|
0.77
|
%
|
102,709
|
559
|
0.73
|
%
|
||||||||||||||||
Time deposits under $100,000
|
77,619
|
343
|
0.59
|
%
|
94,589
|
328
|
0.46
|
%
|
||||||||||||||||
Short-term borrowings
|
12,459
|
204
|
2.17
|
%
|
495
|
4
|
1.10
|
%
|
||||||||||||||||
Long-term borrowings
|
2,300
|
109
|
6.34
|
%
|
2,300
|
109
|
6.34
|
%
|
||||||||||||||||
Long-term capital lease obligation
|
-
|
-
|
0.00
|
%
|
1,401
|
-
|
0.00
|
%
|
||||||||||||||||
Junior subordinated debt
|
29,225
|
1,501
|
6.77
|
%
|
37,054
|
1,913
|
6.81
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
992,427
|
3,069
|
0.41
|
%
|
1,049,800
|
3,359
|
0.42
|
%
|
||||||||||||||||
Demand deposits, noninterest-bearing
|
167,477
|
158,850
|
||||||||||||||||||||||
Other noninterest-bearing liabilities
|
6,539
|
17,132
|
||||||||||||||||||||||
|
||||||||||||||||||||||||
Stockholders' equity, including stock owned by ESOP
|
105,413
|
103,835
|
||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$
|
1,271,856
|
$
|
1,329,617
|
||||||||||||||||||||
Net interest income/interest rate spread (2)
|
$
|
30,315
|
3.31
|
%
|
$
|
31,049
|
3.22
|
%
|
||||||||||||||||
Net interest margin (3)
|
3.36
|
%
|
3.29
|
%
|
(1) |
Average loans include nonaccrual loans of $11.3 million and $14.5 million for the nine months ended September 30, 2018 and 2017, respectively. Interest income includes loan origination fees of $208 thousand and $827 thousand for the nine months ended September 30, 2018 and 2017, respectively.
|
(2) |
Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.
|
(3) |
Net interest margin represents net interest income as a percentage of average interest-earning assets.
|
|
Three Months Ended September 30,
|
|||||||||||
|
2018 Compared to 2017
|
|||||||||||
|
Change Due
to Volume
|
Change Due
to Rate
|
Total
Change
|
|||||||||
|
(In thousands)
|
|||||||||||
Interest-earning Assets:
|
||||||||||||
Loans held for sale
|
$
|
125
|
$
|
-
|
$
|
125
|
||||||
Loans
|
(471
|
)
|
(11
|
)
|
(482
|
)
|
||||||
Taxable investment securities
|
(172
|
)
|
13
|
(159
|
)
|
|||||||
Investment securities exempt from federal income taxes
|
510
|
26
|
536
|
|||||||||
Other interest bearing deposits
|
(211
|
)
|
8
|
(203
|
)
|
|||||||
Non-marketable equity securities
|
15
|
(9
|
)
|
6
|
||||||||
Total (decrease) increase in interest income
|
$
|
(204
|
)
|
$
|
27
|
$
|
(177
|
)
|
||||
Interest-bearing Liabilities:
|
||||||||||||
Now deposits
|
$
|
-
|
$
|
2
|
$
|
2
|
||||||
Money market deposits
|
-
|
-
|
-
|
|||||||||
Savings deposits
|
(4
|
)
|
(2
|
)
|
(6
|
)
|
||||||
Time deposits over $100,000
|
(38
|
)
|
23
|
(15
|
)
|
|||||||
Time deposits under $100,000
|
(18
|
)
|
29
|
11
|
||||||||
Short-term borrowings
|
94
|
-
|
94
|
|||||||||
Long-term borrowings
|
-
|
-
|
-
|
|||||||||
Capital long-term lease obligation
|
-
|
-
|
-
|
|||||||||
Junior subordinated debt
|
(165
|
)
|
(71
|
)
|
(236
|
)
|
||||||
Total increase (decrease) in interest expense
|
$
|
(131
|
)
|
$
|
(19
|
)
|
$
|
(150
|
)
|
|||
Increase (decrease) in net interest income
|
$
|
(73
|
)
|
$
|
46
|
$
|
(27
|
)
|
|
Nine Months Ended September 30,
|
|||||||||||
|
2018 Compared to 2017
|
|||||||||||
|
Change Due
to Volume
|
Change Due
to Rate
|
Total
Change
|
|||||||||
|
(In thousands)
|
|||||||||||
Interest-earning Assets:
|
||||||||||||
Loans held for sale
|
$
|
167
|
$
|
-
|
$
|
167
|
||||||
Loans
|
(2,208
|
)
|
(133
|
)
|
(2,341
|
)
|
||||||
Taxable investment securities
|
(936
|
)
|
355
|
(581
|
)
|
|||||||
Investment securities exempt from federal income taxes
|
1,895
|
147
|
2,042
|
|||||||||
Other interest bearing deposits
|
(349
|
)
|
35
|
(314
|
)
|
|||||||
Non-marketable equity securities
|
29
|
(26
|
)
|
3
|
||||||||
Total (decrease) increase in interest income
|
$
|
(1,402
|
)
|
$
|
378
|
$
|
(1,024
|
)
|
||||
Interest-bearing Liabilities:
|
||||||||||||
Now deposits
|
$
|
(1
|
)
|
$
|
9
|
$
|
8
|
|||||
Money market deposits
|
1
|
-
|
1
|
|||||||||
Savings deposits
|
(14
|
)
|
(5
|
)
|
(19
|
)
|
||||||
Time deposits over $100,000
|
(111
|
)
|
28
|
(83
|
)
|
|||||||
Time deposits under $100,000
|
(59
|
)
|
74
|
15
|
||||||||
Short-term borrowings
|
200
|
-
|
200
|
|||||||||
Long-term borrowings
|
-
|
-
|
-
|
|||||||||
Capital long-term lease obligation
|
-
|
-
|
-
|
|||||||||
Junior subordinated debt
|
(404
|
)
|
(8
|
)
|
(412
|
)
|
||||||
Total increase (decrease) in interest expense
|
$
|
(388
|
)
|
$
|
98
|
$
|
(290
|
)
|
||||
Increase (decrease) in net interest income
|
$
|
(1,014
|
)
|
$
|
280
|
$
|
(734
|
)
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||||||||||
|
2018
|
2017
|
Net Difference
|
2018
|
2017
|
Net Difference
|
||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||
Noninterest income:
|
||||||||||||||||||||||||
Mortgage loan servicing fees
|
$
|
-
|
$
|
446
|
$
|
(446
|
)
|
$
|
-
|
$
|
1,394
|
$
|
(1,394
|
)
|
||||||||||
Trust and investment services fees
|
749
|
643
|
106
|
2,255
|
1,953
|
302
|
||||||||||||||||||
Service charges on deposits
|
226
|
202
|
24
|
712
|
784
|
(72
|
)
|
|||||||||||||||||
Net gain on sale of OREO
|
191
|
130
|
61
|
764
|
800
|
(36
|
)
|
|||||||||||||||||
Net (loss) gain on sale of securities
|
-
|
-
|
-
|
-
|
(1,248
|
)
|
1,248
|
|||||||||||||||||
BOLI income
|
218
|
88
|
130
|
656
|
271
|
385
|
||||||||||||||||||
Mortgage referral fees
|
288
|
431
|
(143
|
)
|
874
|
1,175
|
(301
|
)
|
||||||||||||||||
Interchange fees
|
507
|
567
|
(60
|
)
|
1,593
|
1,823
|
(230
|
)
|
||||||||||||||||
Other fees
|
301
|
312
|
(11
|
)
|
936
|
984
|
(48
|
)
|
||||||||||||||||
Venture capital investment income
|
-
|
-
|
-
|
735
|
(21
|
)
|
756
|
|||||||||||||||||
Other noninterest income
|
18
|
13
|
5
|
32
|
85
|
(53
|
)
|
|||||||||||||||||
Total noninterest income
|
$
|
2,498
|
$
|
2,832
|
$
|
(334
|
)
|
$
|
8,557
|
$
|
8,000
|
$
|
557
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||||||||||
|
2018
|
2017
|
Net Difference
|
2018
|
2017
|
Net Difference
|
||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||
Noninterest expenses:
|
||||||||||||||||||||||||
Salaries and employee benefits
|
$
|
5,410
|
$
|
5,668
|
$
|
(258
|
)
|
$
|
16,286
|
$
|
17,913
|
$
|
(1,627
|
)
|
||||||||||
Occupancy
|
522
|
553
|
(31
|
)
|
1,592
|
1,590
|
2
|
|||||||||||||||||
Data processing
|
952
|
1,132
|
(180
|
)
|
2,894
|
3,557
|
(663
|
)
|
||||||||||||||||
Legal, professional, and accounting fees
|
488
|
712
|
(224
|
)
|
1,540
|
3,998
|
(2,458
|
)
|
||||||||||||||||
Change in value of MSRs
|
-
|
677
|
(677
|
)
|
-
|
1,406
|
(1,406
|
)
|
||||||||||||||||
Other noninterest expenses:
|
||||||||||||||||||||||||
Marketing
|
89
|
112
|
(23
|
)
|
355
|
474
|
(119
|
)
|
||||||||||||||||
Supplies
|
40
|
44
|
(4
|
)
|
130
|
233
|
(103
|
)
|
||||||||||||||||
Postage
|
63
|
64
|
(1
|
)
|
172
|
270
|
(98
|
)
|
||||||||||||||||
FDIC insurance premiums
|
72
|
182
|
(110
|
)
|
289
|
705
|
(416
|
)
|
||||||||||||||||
Collection expenses
|
130
|
(173
|
)
|
303
|
438
|
1,085
|
(647
|
)
|
||||||||||||||||
Other
|
1,280
|
2,702
|
(1,422
|
)
|
4,571
|
7,243
|
(2,672
|
)
|
||||||||||||||||
Total other noninterest expenses
|
1,674
|
2,931
|
(1,257
|
)
|
5,955
|
10,010
|
(4,055
|
)
|
||||||||||||||||
Total noninterest expenses
|
$
|
9,046
|
$
|
11,673
|
$
|
(2,627
|
)
|
$
|
28,267
|
$
|
38,474
|
$
|
(10,207
|
)
|
|
At September 30, 2018
|
At December 31, 2017
|
||||||||||||||
|
Amortized Cost
|
Fair Value
|
Amortized Cost
|
Fair Value
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
Securities Available for Sale:
|
||||||||||||||||
U.S. government sponsored agencies
|
$
|
69,300
|
$
|
67,004
|
$
|
69,315
|
$
|
68,551
|
||||||||
State and political subdivisions
|
162,628
|
157,544
|
157,652
|
158,706
|
||||||||||||
Residential mortgage-backed securities
|
95,703
|
93,643
|
124,578
|
123,083
|
||||||||||||
Residential collateralized mortgage obligations
|
15,119
|
14,979
|
9,715
|
9,686
|
||||||||||||
Commercial mortgage backed securities
|
109,725
|
104,337
|
110,483
|
108,162
|
||||||||||||
SBA pools
|
486
|
468
|
560
|
545
|
||||||||||||
Totals
|
$
|
452,961
|
$
|
437,975
|
$
|
472,303
|
$
|
468,733
|
||||||||
|
||||||||||||||||
Securities Held to Maturity:
|
||||||||||||||||
SBA pools
|
$
|
7,769
|
$
|
7,151
|
$
|
7,854
|
$
|
7,369
|
||||||||
Totals
|
$
|
7,769
|
$
|
7,151
|
$
|
7,854
|
$
|
7,369
|
|
Due in One Year or Less
|
Due after One Year
through Five Years
|
Due after Five Years
through Ten Years
|
Due after Ten Years
or No Stated Maturity
|
||||||||||||||||||||||||||||
|
Balance
|
Weighted
Average Yield
|
Balance
|
Weighted
Average Yield
|
Balance
|
Weighted
Average Yield
|
Balance
|
Weighted
Average Yield
|
||||||||||||||||||||||||
As of September 30, 2018
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||
Securities Available for Sale:
|
||||||||||||||||||||||||||||||||
U.S. Government sponsored agencies
|
$
|
-
|
0.00
|
%
|
$
|
67,004
|
1.90
|
%
|
$
|
-
|
0.00
|
%
|
$
|
-
|
0.00
|
%
|
||||||||||||||||
States and political subdivisions (1)
|
200
|
1.50
|
%
|
1,696
|
2.08
|
%
|
3,189
|
2.54
|
%
|
152,459
|
2.56
|
%
|
||||||||||||||||||||
Mortgage backed
|
-
|
0.00
|
%
|
42,770
|
1.93
|
%
|
59,892
|
2.31
|
%
|
110,297
|
2.73
|
%
|
||||||||||||||||||||
SBA pools
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
-
|
0.00
|
%
|
468
|
2.61
|
%
|
||||||||||||||||||||
Totals
|
$
|
200
|
1.50
|
%
|
$
|
111,470
|
1.91
|
%
|
$
|
63,081
|
2.32
|
%
|
$
|
263,224
|
2.63
|
%
|
||||||||||||||||
Securities Held to Maturity:
|
||||||||||||||||||||||||||||||||
SBA pools
|
$
|
-
|
0.00
|
%
|
$
|
-
|
0.00
|
%
|
$
|
-
|
0.00
|
%
|
$
|
7,769
|
3.90
|
%
|
||||||||||||||||
Totals
|
$
|
-
|
0.00
|
%
|
$
|
-
|
0.00
|
%
|
$
|
-
|
0.00
|
%
|
$
|
7,769
|
3.90
|
%
|
(1) |
Yield is reflected adjusting for federal and state exemption of interest income and certain other permanent income tax differences.
|
|
September 30, 2018
|
December 31, 2017
|
||||||||||||||
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
Commercial
|
$
|
63,539
|
9.00
|
%
|
$
|
61,388
|
8.76
|
%
|
||||||||
Commercial real estate
|
404,790
|
57.33
|
%
|
378,802
|
54.04
|
%
|
||||||||||
Residential real estate
|
155,118
|
21.97
|
%
|
178,296
|
25.43
|
%
|
||||||||||
Construction real estate
|
72,550
|
10.28
|
%
|
63,569
|
9.07
|
%
|
||||||||||
Installment and other
|
9,998
|
1.42
|
%
|
18,952
|
2.70
|
%
|
||||||||||
Total loans
|
705,995
|
100.00
|
%
|
701,007
|
100.00
|
%
|
||||||||||
Unearned income
|
(1,171
|
)
|
(863
|
)
|
||||||||||||
Gross loans
|
704,824
|
700,144
|
||||||||||||||
Allowance for loan losses
|
(9,528
|
)
|
(13,803
|
)
|
||||||||||||
Net loans
|
$
|
695,296
|
$
|
686,341
|
|
Due in One Year or Less
|
Due after One Year through Five Years
|
Due after Five Years
|
Total
|
||||||||||||||||||||||||||||
|
Fixed Rate
|
Variable Rate
|
Fixed Rate
|
Variable Rate
|
Fixed Rate
|
Variable Rate
|
Fixed Rate
|
Variable Rate
|
||||||||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||
Commercial
|
$
|
1,230
|
$
|
25,948
|
$
|
24,245
|
$
|
1,863
|
$
|
10,253
|
$
|
-
|
$
|
35,728
|
$
|
27,811
|
||||||||||||||||
Commercial real estate
|
3,829
|
99,897
|
125,965
|
55,054
|
120,045
|
-
|
249,839
|
154,951
|
||||||||||||||||||||||||
Residential real estate
|
116
|
85,209
|
5,169
|
4,421
|
59,811
|
392
|
65,096
|
90,022
|
||||||||||||||||||||||||
Construction real estate
|
18,127
|
39,840
|
969
|
5,022
|
8,592
|
-
|
27,688
|
44,862
|
||||||||||||||||||||||||
Installment and other
|
589
|
2,513
|
2,796
|
-
|
4,100
|
-
|
7,485
|
2,513
|
||||||||||||||||||||||||
Total loans
|
$
|
23,891
|
$
|
253,407
|
$
|
159,144
|
$
|
66,360
|
$
|
202,801
|
$
|
392
|
$
|
385,836
|
$
|
320,159
|
|
September 30, 2018
|
December 31, 2017
|
||||||
|
(Dollars in thousands)
|
|||||||
Non-accruing loans
|
$
|
8,710
|
$
|
17,340
|
||||
Loans 90 days or more past due, still accruing interest
|
-
|
-
|
||||||
Total non-performing loans
|
8,710
|
17,340
|
||||||
OREO
|
5,982
|
6,432
|
||||||
Total non-performing assets
|
$
|
14,692
|
$
|
23,772
|
||||
TDRs, still accruing interest
|
$
|
28,387
|
$
|
33,801
|
||||
Total non-performing loans to total loans
|
1.23
|
%
|
2.47
|
%
|
||||
Allowance for loan losses to non-performing loans
|
109.39
|
%
|
79.60
|
%
|
||||
Total non-performing assets to total assets
|
1.17
|
%
|
1.85
|
%
|
|
Commercial
|
Commercial Real Estate
|
Residential Real Estate
|
|||||||||||||||||||||
Dollar Range
|
Number of
Borrowers
|
Amount
|
Number of
Borrowers
|
Amount
|
Number of
Borrowers
|
Amount
|
||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||
September 30, 2018
|
||||||||||||||||||||||||
$5.0 million or more
|
-
|
$
|
-
|
-
|
$
|
-
|
-
|
$
|
-
|
|||||||||||||||
$3.0 million to $4.9 million
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
$1.5 million to $2.9 million
|
-
|
-
|
1
|
1,753
|
-
|
-
|
||||||||||||||||||
Under $1.5 million
|
3
|
603
|
10
|
1,964
|
46
|
4,125
|
||||||||||||||||||
Total
|
3
|
$
|
603
|
11
|
$
|
3,717
|
46
|
$
|
4,125
|
|||||||||||||||
|
||||||||||||||||||||||||
Percentage of individual loan category
|
0.95
|
%
|
0.92
|
%
|
2.66
|
%
|
||||||||||||||||||
|
||||||||||||||||||||||||
December 31, 2017
|
||||||||||||||||||||||||
$5.0 million or more
|
-
|
$
|
-
|
-
|
$
|
-
|
-
|
$
|
-
|
|||||||||||||||
$3.0 million to $4.9 million
|
-
|
-
|
1
|
4,709
|
-
|
-
|
||||||||||||||||||
$1.5 million to $2.9 million
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Under $1.5 million
|
3
|
102
|
10
|
3,908
|
52
|
4,599
|
||||||||||||||||||
Total
|
3
|
$
|
102
|
11
|
$
|
8,617
|
52
|
$
|
4,599
|
|||||||||||||||
|
||||||||||||||||||||||||
Percentage of individual loan category
|
0.17
|
%
|
2.27
|
%
|
2.58
|
%
|
|
Construction Real Estate
|
Installment and Other Loans
|
Total
|
|||||||||||||||||||||
Dollar Range
|
Number of
Borrowers
|
Amount
|
Number of
Borrowers
|
Amount
|
Number of
Borrowers
|
Amount
|
||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||
September 30, 2018
|
||||||||||||||||||||||||
$5.0 million or more
|
-
|
$
|
-
|
-
|
$
|
-
|
-
|
$
|
-
|
|||||||||||||||
$3.0 million to $4.9 million
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
$1.5 million to $2.9 million
|
-
|
-
|
-
|
-
|
1
|
1,753
|
||||||||||||||||||
Under $1.5 million
|
5
|
165
|
3
|
100
|
67
|
6,957
|
||||||||||||||||||
Total
|
5
|
$
|
165
|
3
|
$
|
100
|
68
|
$
|
8,710
|
|||||||||||||||
|
||||||||||||||||||||||||
Percentage of individual loan category
|
0.23
|
%
|
1.00
|
%
|
1.23
|
%
|
||||||||||||||||||
|
||||||||||||||||||||||||
December 31, 2017
|
||||||||||||||||||||||||
$5.0 million or more
|
-
|
$
|
-
|
-
|
$
|
-
|
-
|
$
|
-
|
|||||||||||||||
$3.0 million to $4.9 million
|
-
|
-
|
-
|
-
|
1
|
4,709
|
||||||||||||||||||
$1.5 million to $2.9 million
|
1
|
2,001
|
-
|
-
|
1
|
2,001
|
||||||||||||||||||
Under $1.5 million
|
11
|
1,910
|
4
|
111
|
80
|
10,630
|
||||||||||||||||||
Total
|
12
|
$
|
3,911
|
4
|
$
|
111
|
82
|
$
|
17,340
|
|||||||||||||||
|
||||||||||||||||||||||||
Percentage of individual loan category
|
6.15
|
%
|
0.59
|
%
|
2.47
|
%
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
|
2018
|
2017
|
2018
|
2017
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
Balance at beginning of period
|
$
|
10,444
|
$
|
13,167
|
$
|
13,803
|
$
|
14,352
|
||||||||
(Benefit) provision for loan losses
|
(1,000
|
)
|
(250
|
)
|
(1,480
|
)
|
(1,220
|
)
|
||||||||
Charge-offs:
|
||||||||||||||||
Commercial
|
1
|
7
|
134
|
270
|
||||||||||||
Commercial real estate
|
-
|
612
|
2,736
|
639
|
||||||||||||
Residential real estate
|
65
|
-
|
184
|
309
|
||||||||||||
Construction real estate
|
-
|
1,385
|
212
|
1,409
|
||||||||||||
Installment and other
|
21
|
19
|
76
|
253
|
||||||||||||
Total charge-offs
|
87
|
2,023
|
3,342
|
2,880
|
||||||||||||
Recoveries:
|
||||||||||||||||
Commercial
|
25
|
56
|
73
|
306
|
||||||||||||
Commercial real estate
|
12
|
88
|
52
|
186
|
||||||||||||
Residential real estate
|
102
|
125
|
242
|
224
|
||||||||||||
Construction real estate
|
4
|
37
|
53
|
51
|
||||||||||||
Installment and other
|
28
|
2,000
|
127
|
2,181
|
||||||||||||
Total recoveries
|
171
|
2,306
|
547
|
2,948
|
||||||||||||
Net (recoveries) charge-offs
|
(84
|
)
|
(283
|
)
|
2,795
|
(68
|
)
|
|||||||||
Balance at end of period
|
$
|
9,528
|
$
|
13,200
|
$
|
9,528
|
$
|
13,200
|
|
September 30, 2018
|
December 31, 2017
|
||||||||||||||
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
Commercial
|
$
|
573
|
6.01
|
%
|
$
|
536
|
3.88
|
%
|
||||||||
Commercial real estate
|
5,827
|
61.17
|
%
|
8,573
|
62.11
|
%
|
||||||||||
Residential real estate
|
2,102
|
22.06
|
%
|
2,843
|
20.60
|
%
|
||||||||||
Construction real estate
|
751
|
7.88
|
%
|
1,030
|
7.46
|
%
|
||||||||||
Installment and other
|
108
|
1.13
|
%
|
315
|
2.28
|
%
|
||||||||||
Unallocated
|
167
|
1.75
|
%
|
506
|
3.67
|
%
|
||||||||||
Total
|
$
|
9,528
|
100.00
|
%
|
$
|
13,803
|
100.00
|
%
|
|
September 30, 2018
|
December 31, 2017
|
||||||
|
(In thousands)
|
|||||||
Performing loans classified as:
|
||||||||
Substandard
|
$
|
15,939
|
$
|
12,164
|
||||
Total performing adversely classified loans
|
$
|
15,939
|
$
|
12,164
|
||||
Special mention loans
|
$
|
8,910
|
$
|
5,681
|
|
September 30, 2018
(In thousands)
|
|||
Maturing within three months
|
$
|
2,742
|
||
After three but within six months
|
3,056
|
|||
After six but within twelve months
|
5,778
|
|||
After twelve but within three years
|
2,203
|
|||
After three years
|
6,052
|
|||
Total time deposits $250,000 and over
|
$
|
19,831
|
● |
Fed Funds Purchased are limited to 60% of the total Available Fed Fund Lines, leaving 40% available for emergency needs and potential funding needs.
|
● |
FHLB Advances are limited to 75% of the Total Collateral Advance Capacity leaving 25% available for emergency liquidity needs and potential funding needs.
|
● |
Wholesale Repurchase Agreements are limited, in aggregate, to no more than 10% of Total Funding (which is defined as equal to total assets).
|
● |
Total Borrowings are limited to no more than 25% of Total Funding.
|
● |
Wholesale Funds, as that term is defined above, is limited to no more than 25% of the Bank's Total Funding (total assets)
|
● |
Brokered funds are not to exceed 20% of Total Funding without the prior approval of the Board of Directors.
|
● |
The total aggregate balance of Wholesale Funds, Brokered Funds and Borrowings as defined above is limited to no more than 35% of Total Funding.
|
● |
The Liquidity Coverage Ratio is defined as the Anticipated Sources of Liquidity divided by the Anticipated Liquidity Needs must be greater than 1.15.
|
● |
Cumulative Liquidity Gap (percent of cumulative net cash outflow over a six month period under a worst case scenario) at least 100%.
|
|
Actual
|
For Capital
Adequacy Purposes
|
To be Well Capitalized Under
Prompt Corrective Action Provisions
|
|||||||||||||||||||||
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
September 30, 2018
|
||||||||||||||||||||||||
Total capital (to risk-weighted assets):
|
||||||||||||||||||||||||
Consolidated
|
$
|
151,865
|
17.5493
|
%
|
$
|
69,229
|
8.00
|
%
|
N/A
|
N/A
|
||||||||||||||
Bank only
|
146,106
|
16.9333
|
%
|
69,027
|
8.00
|
%
|
$
|
86,283
|
10.00
|
%
|
||||||||||||||
Tier 1 capital (to risk weighted assets):
|
||||||||||||||||||||||||
Consolidated
|
142,186
|
16.4308
|
%
|
51,922
|
6.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank only
|
136,427
|
15.8115
|
%
|
51,770
|
6.00
|
%
|
69,027
|
8.00
|
%
|
|||||||||||||||
Common Equity Tier 1 Capital (to risk weighted assets):
|
||||||||||||||||||||||||
Consolidated
|
116,952
|
13.5148
|
%
|
38,941
|
4.50
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank only
|
136,427
|
15.8115
|
%
|
38,827
|
4.50
|
%
|
56,084
|
6.50
|
%
|
|||||||||||||||
Tier 1 leverage (to average assets):
|
||||||||||||||||||||||||
Consolidated
|
142,186
|
11.2026
|
%
|
50,769
|
4.00
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank only
|
136,427
|
10.7753
|
%
|
50,644
|
4.00
|
%
|
63,306
|
5.00
|
%
|
Form of Second Amended and Restated Bylaws of Trinity Capital Corporation (incorporated herein by reference to Exhibit 3.1 of the Company's Current report on Form 8-K filed January 30, 2018 (file No. 000-50266)
|
||
Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a)
|
||
|
|
|
Certification on Chief Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a)
|
||
|
|
|
Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
||
|
|
|
Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
||
|
|
|
101
|
Interactive data files pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017; (ii) Consolidated Statements of Operations for the three and nine months ended September 30, 2018 and 2017; (iii) Consolidated Statements of Changes in Stockholders' Equity for the nine months ended September 30, 2018 and 2017; (iv) Consolidated Statements of Cash Flows for the nine months ended September 30, 2018 and 2017; and (v) Notes to Consolidated Financial Statements, tagged as blocks of text
|
TRINITY CAPITAL CORPORATION
|
|||
Date: November 9, 2018
|
|
|
|
|
By:
|
/s/ John S. Gulas
|
|
John S. Gulas
|
|||
|
|
Chief Executive Officer and President
|
|
By:
|
/s/ Thomas Dolan
|
||
Thomas Dolan
|
|||
Chief Financial Officer
|
1. |
I have reviewed this quarterly report on Form 10-Q of Trinity Capital Corporation;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c) |
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
|
d) |
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5. |
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: November 9, 2018
|
/s/ John S. Gulas
|
|
John S. Gulas
|
||
President and Chief Executive Officer
|
1. |
I have reviewed this quarterly report on Form 10-Q of Trinity Capital Corporation;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c) |
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
|
d) |
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5. |
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: November 9, 2018
|
/s/ Thomas Dolan
|
|
Thomas Dolan
|
||
Chief Financial Officer
|
(1) |
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Trinity.
|
/s/ John S. Gulas
|
|
John S. Gulas
|
|
President and Chief Executive Officer
|
|
November 9, 2018
|
(1) |
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Trinity.
|
/s/ Thomas Dolan
|
|
Thomas Dolan
|
|
Chief Financial Officer
|
|
November 9, 2018
|
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