☒QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
x | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
o | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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Maryland | 36-4926041 | |||||||
(State or other jurisdiction of incorporation of organization) | (I.R.S. Employer Identification No.) |
31 North 9th Street, Richmond, Indiana47374
(765)
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, par value $0.01 per share | RMBI | The NASDAQ Stock Market LLC |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 and 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]
Large accelerated filer | [ ] | Accelerated filer | [ ] | |||||||||||||
Non-accelerated filer | [X] | Smaller reporting company | [X] | |||||||||||||
Emerging growth company | [X] |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
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Management's Discussion and Analysis of Financial Condition and Results of Operations |
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Exhibits | |||||||||
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| June 30, 2020 |
| December 31, 2019 | |||
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| (Unaudited) |
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Assets |
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Cash and due from banks | $ | 30,817,153 |
| $ | 9,088,398 | |
Interest-bearing demand deposits | 79,789,311 |
| 31,508,479 | |||
Cash and cash equivalents | 110,606,464 |
| 40,596,877 | |||
Investment securities - available for sale | 221,204,068 |
| 201,783,851 | |||
Investment securities - held to maturity | 13,319,819 |
| 15,917,394 | |||
Loans and leases, net of allowance for losses of $8,521,000 and $7,089,000, respectively | 752,922,965 |
| 687,258,190 | |||
Premises and equipment, net | 14,439,763 |
| 14,087,169 | |||
Federal Home Loan Bank stock | 9,079,700 |
| 7,600,400 | |||
Interest receivable | 4,721,040 |
| 3,052,380 | |||
Mortgage-servicing rights | 1,405,128 |
| 1,033,217 | |||
Cash surrender value of life insurance | 3,899,832 |
| 3,839,911 | |||
Other assets | 8,613,962 |
| 10,872,682 | |||
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Total assets | $ | 1,140,212,741 |
| $ | 986,042,071 | |
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Liabilities |
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Non-interest bearing deposits | $ | 89,921,951 |
| $ | 60,297,443 | |
Interest bearing deposits | 649,209,179 |
| 556,921,370 | |||
Total deposits | 739,131,130 |
| 617,218,813 | |||
Federal Home Loan Bank advances | 180,000,000 |
| 154,000,000 | |||
Advances by borrowers for taxes and insurance | 498,170 |
| 545,498 | |||
Interest payable | 348,300 |
| 296,774 | |||
Multi-employer pension plan liability | 17,454,709 |
| 17,454,709 | |||
Other liabilities | 6,644,530 |
| 8,738,831 | |||
Total liabilities | 944,076,839 |
| 798,254,625 | |||
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Commitments and Contingent Liabilities | - |
| - | |||
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Stockholders' Equity |
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Common stock, $0.01 par value Authorized - 90,000,000 shares Issued and outstanding - 13,526,625 shares | 135,266 |
| 135,266 | |||
Additional paid-in capital | 132,563,670 |
| 132,601,876 | |||
Retained earnings | 74,446,405 |
| 70,111,434 | |||
Unearned employee stock ownership plan (ESOP) | (14,032,728 | ) | (14,400,386) | |||
Accumulated other comprehensive income (loss) | 3,023,289 |
| (660,744) | |||
Total stockholders' equity | 196,135,902 |
| 187,787,446 | |||
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Total liabilities and stockholders' equity | $ | 1,140,212,741 |
| $ | 986,042,071 |
March 31, 2021 | December 31, 2020 | ||||||||||
(Unaudited) | |||||||||||
Assets | |||||||||||
Cash and due from banks | $ | 13,713,168 | $ | 16,748,093 | |||||||
Interest-bearing demand deposits | 51,810,044 | 32,020,364 | |||||||||
Cash and cash equivalents | 65,523,212 | 48,768,457 | |||||||||
Investment securities - available for sale | 258,158,592 | 244,505,189 | |||||||||
Investment securities - held to maturity | 10,211,437 | 12,225,275 | |||||||||
Loans and leases, net of allowance for losses of $10,959,000 and $10,586,000, respectively | 763,731,414 | 736,400,098 | |||||||||
Premises and equipment, net | 14,718,289 | 14,892,110 | |||||||||
Federal Home Loan Bank stock | 9,049,600 | 9,049,600 | |||||||||
Interest receivable | 4,203,991 | 4,703,604 | |||||||||
Mortgage-servicing rights | 1,658,879 | 1,712,138 | |||||||||
Cash surrender value of life insurance | 3,548,371 | 3,525,736 | |||||||||
Other assets | 10,102,117 | 8,410,450 | |||||||||
Total assets | $ | 1,140,905,902 | $ | 1,084,192,657 | |||||||
Liabilities | |||||||||||
Noninterest-bearing deposits | 118,075,878 | 98,724,887 | |||||||||
Interest bearing deposits | 638,997,768 | 594,320,508 | |||||||||
Total deposits | 757,073,646 | 693,045,395 | |||||||||
Federal Home Loan Bank advances | 170,000,000 | 170,000,000 | |||||||||
Advances by borrowers for taxes and insurance | 535,910 | 492,524 | |||||||||
Interest payable | 207,893 | 222,118 | |||||||||
Multi-employer pension plan liability | 17,454,709 | 17,454,709 | |||||||||
Other liabilities | 6,114,110 | 10,265,203 | |||||||||
Total liabilities | 951,386,268 | 891,479,949 | |||||||||
Commitments and Contingent Liabilities | 0 | 0 | |||||||||
Stockholders' Equity | |||||||||||
Common stock, $0.01 par value | |||||||||||
Authorized - 90,000,000 shares | |||||||||||
Issued and outstanding - 13,050,996 shares and 13,193,760 shares at March 31, 2021 and December 31, 2020, respectively | 130,510 | 131,938 | |||||||||
Additional paid-in capital | 122,814,920 | 124,246,425 | |||||||||
Retained earnings | 80,005,652 | 78,290,113 | |||||||||
Unearned employee stock ownership plan (ESOP) | (13,479,847) | (13,664,373) | |||||||||
Accumulated other comprehensive income | 48,399 | 3,708,605 | |||||||||
Total stockholders' equity | 189,519,634 | 192,712,708 | |||||||||
Total liabilities and stockholders' equity | $ | 1,140,905,902 | $ | 1,084,192,657 |
| Three Months Ended June 30, |
| Six Months Ended June 30, | |||||||||
| 2020 |
| 2019 |
| 2020 |
| 2019 | |||||
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Interest Income |
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Loans and leases | $ | 9,308,495 |
| $ | 9,163,223 |
| $ | 18,372,062 |
| $ | 17,929,352 | |
Investment securities | 1,178,483 |
| 956,816 |
| 2,441,420 |
| 1,898,477 | |||||
Other | 11,447 |
| 278,462 |
| 136,477 |
| 327,569 | |||||
Total interest income | 10,498,425 |
| 10,398,501 |
| 20,949,959 |
| 20,155,398 | |||||
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Interest Expense |
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Deposits | 1,704,310 |
| 2,107,460 |
| 3,529,008 |
| 3,994,160 | |||||
Borrowings | 770,304 |
| 808,565 |
| 1,509,645 |
| 1,558,827 | |||||
Total interest expense | 2,474,614 |
| 2,916,025 |
| 5,038,653 |
| 5,552,987 | |||||
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Net Interest Income | 8,023,811 |
| 7,482,476 |
| 15,911,306 |
| 14,602,411 | |||||
Provision for losses on loans and leases | 1,320,000 |
| 485,000 |
| 1,530,000 |
| 1,010,000 | |||||
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Net Interest Income After Provision for Losses on Loans and Leases | 6,703,811 |
| 6,997,476 |
| 14,381,306 |
| 13,592,411 | |||||
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Non-Interest Income |
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Service charges on deposit accounts | 105,618 |
| 251,795 |
| 360,269 |
| 483,444 | |||||
Card fee income | 201,748 |
| 185,903 |
| 381,355 |
| 352,489 | |||||
Loan and lease servicing fees | 301,230 |
| 98,931 |
| 235,538 |
| 212,203 | |||||
Net gains on securities (includes $9,874, $36,426, $79,013 and $61,232, respectively, related to accumulated other comprehensive loss reclassifications) | 9,874 |
| 36,426 |
| 79,013 |
| 61,232 | |||||
Net gains on loan and lease sales | 1,030,668 |
| 123,573 |
| 1,258,876 |
| 210,798 | |||||
Other loan fees | 244,702 |
| 88,394 |
| 327,576 |
| 243,034 | |||||
Other income | 188,797 |
| 114,883 |
| 393,078 |
| 241,160 | |||||
Total non-interest income | 2,082,637 |
| 899,905 |
| 3,035,705 |
| 1,804,360 | |||||
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Non-Interest Expenses |
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Salaries and employee benefits | 3,270,311 |
| 5,316,221 |
| 6,633,996 |
| 8,791,954 | |||||
Net occupancy expenses | 284,981 |
| 256,564 |
| 574,990 |
| 549,945 | |||||
Equipment expenses | 280,855 |
| 233,500 |
| 536,703 |
| 475,645 | |||||
Data processing fees | 472,071 |
| 423,974 |
| 948,874 |
| 838,166 | |||||
Deposit insurance expense | 60,000 |
| 158,000 |
| 116,000 |
| 293,000 | |||||
Printing and office supplies | 32,097 |
| 27,262 |
| 58,640 |
| 69,020 | |||||
Legal and professional fees | 326,815 |
| 208,975 |
| 568,181 |
| 505,754 | |||||
Advertising expense | 80,256 |
| 173,259 |
| 189,813 |
| 296,676 | |||||
Bank service charges | 28,465 |
| 32,593 |
| 65,820 |
| 64,269 | |||||
Real estate owned expense | 989 |
| 22,573 |
| 3,166 |
| 37,393 | |||||
Loss on sale of real estate owned | - |
| 6,493 |
| - |
| 6,493 | |||||
Other expenses | 810,857 |
| 744,542 |
| 1,475,131 |
| 1,480,682 | |||||
Total non- interest expenses | 5,647,697 |
| 7,603,956 |
| 11,171,314 |
| 13,408,997 | |||||
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Income Before Income Tax Expense (Benefit) | 3,138,751 |
| 293,425 |
| 6,245,697 |
| 1,987,774 | |||||
Provision (benefit) for income taxes (includes $2,503, $9,520, $20,026 and $16,003, respectively, related to income tax expense from reclassification of items) | 632,574 |
| (41,700 |
) | 1,287,374 |
| 280,400 | |||||
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Net Income | $ | 2,506,177 |
| $ 335,125 |
| $ 4,958,323 |
| $ | 1,707,374 | |||
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Earnings Per Share |
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Basic | $ | 0.20 |
| N/A |
| $ 0.40 |
| N/A | ||||
Diluted | $ | 0.20 |
| N/A |
| $ 0.40 |
| N/A |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Interest Income | |||||||||||||||||||||||
Loans and leases | $ | 9,628,305 | $ | 9,063,567 | |||||||||||||||||||
Investment securities | 1,009,239 | 1,262,937 | |||||||||||||||||||||
Other | 6,904 | 125,030 | |||||||||||||||||||||
Total interest income | 10,644,448 | 10,451,534 | |||||||||||||||||||||
Interest Expense | |||||||||||||||||||||||
Deposits | 1,187,272 | 1,824,698 | |||||||||||||||||||||
Borrowings | 693,951 | 739,341 | |||||||||||||||||||||
Total interest expense | 1,881,223 | 2,564,039 | |||||||||||||||||||||
Net Interest Income | 8,763,225 | 7,887,495 | |||||||||||||||||||||
Provision for losses on loans and leases | 400,000 | 210,000 | |||||||||||||||||||||
Net Interest Income After Provision for Losses on Loans and Leases | 8,363,225 | 7,677,495 | |||||||||||||||||||||
Non-Interest Income | |||||||||||||||||||||||
Service charges on deposit accounts | 194,439 | 254,651 | |||||||||||||||||||||
Card fee income | 242,515 | 179,607 | |||||||||||||||||||||
Loan and lease servicing fees | (105,450) | (65,692) | |||||||||||||||||||||
Net gains on securities (includes $0 and $69,139, respectively, related to accumulated other comprehensive loss reclassifications) | 0 | 69,139 | |||||||||||||||||||||
Net gains on loan and lease sales | 964,817 | 228,208 | |||||||||||||||||||||
Other loan fees | 247,891 | 82,874 | |||||||||||||||||||||
Other income | 222,372 | 204,281 | |||||||||||||||||||||
Total non-interest income | 1,766,584 | 953,068 | |||||||||||||||||||||
Non-Interest Expenses | |||||||||||||||||||||||
Salaries and employee benefits | 4,445,732 | 3,363,685 | |||||||||||||||||||||
Net occupancy expenses | 330,640 | 290,009 | |||||||||||||||||||||
Equipment expenses | 336,564 | 255,848 | |||||||||||||||||||||
Data processing fees | 526,173 | 476,803 | |||||||||||||||||||||
Deposit insurance expense | 71,000 | 56,000 | |||||||||||||||||||||
Printing and office supplies | 31,414 | 26,543 | |||||||||||||||||||||
Legal and professional fees | 346,518 | 241,366 | |||||||||||||||||||||
Advertising expense | 84,044 | 109,557 | |||||||||||||||||||||
Bank service charges | 30,751 | 37,355 | |||||||||||||||||||||
Real estate owned expense | 2,332 | 2,177 | |||||||||||||||||||||
Loss on sale of real estate owned | 1,278 | 0 | |||||||||||||||||||||
Other expenses | 771,210 | 664,274 | |||||||||||||||||||||
Total non-interest expenses | 6,977,656 | 5,523,617 | |||||||||||||||||||||
Income Before Income Tax Expense | 3,152,153 | 3,106,946 | |||||||||||||||||||||
Provision for income taxes (includes $0 and $17,522, respectively, related to income tax expense from reclassification of items) | 589,667 | 654,800 | |||||||||||||||||||||
Net Income | $ | 2,562,486 | $ | 2,452,146 | |||||||||||||||||||
Earnings Per Share | |||||||||||||||||||||||
Basic | $ | 0.22 | $ | 0.20 | |||||||||||||||||||
Diluted | $ | 0.22 | $ | 0.20 |
(Loss)
| Three Months Ended |
| Six Months Ended | ||||||||
| June 30, |
| June 30, | ||||||||
| 2020 |
| 2019 |
| 2020 |
| 2019 | ||||
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Net Income | $ | 2,506,177 |
| $ | 335,125 |
| $ | 4,958,323 |
| $ | 1,707,374 |
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Other Comprehensive Income |
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Unrealized gain on available-for-sale securities, net of tax expense of $312,821, $559,911, $1,270,737 and $1,237,814, respectively. | 921,429 |
| 1,582,470 |
| 3,743,020 |
| 3,498,417 | ||||
Less: reclassification adjustment for realized gains included in net income, net of tax expense of $2,503, $9,520, $20,026 and $16,003, respectively. | 7,371 |
| 26,906 |
| 58,987 |
| 45,229 | ||||
914,058 |
| 1,555,564 |
| 3,684,033 |
| 3,453,188 | |||||
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Comprehensive Income | $ | 3,420,235 |
| $ | 1,890,689 |
| $ | 8,642,356 |
| $ | 5,160,562 |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Net Income | $ | 2,562,486 | $ | 2,452,146 | |||||||||||||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||||||||
Unrealized gain (loss) on available-for-sale securities, net of tax (benefit) expense of $(972,966) and $957,976, respectively. | (3,660,206) | 2,821,591 | |||||||||||||||||||||
Less: reclassification adjustment for realized gains included in net income, net of tax expense of $0 and $17,523, respectively. | 0 | 51,616 | |||||||||||||||||||||
(3,660,206) | 2,769,975 | ||||||||||||||||||||||
Comprehensive (Loss) Income | $ | (1,097,720) | $ | 5,222,121 |
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| Accumulated |
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| Common Stock |
| Additional |
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| Unearned |
| Other |
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| Shares |
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| Paid-in |
| Retained |
| ESOP |
| Comprehensive |
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| Outstanding |
| Amount |
| Capital |
| Earnings |
| Shares |
| Income/(Loss) |
| Total |
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Balances, March 31, 2020 | 13,526,625 |
| $ | 135,266 |
| $ | 132,604,734 |
| $ | 72,563,580 |
| $ | (14,216,557 | ) | $ | 2,109,231 |
| $ | 193,196,254 |
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Net income | - |
| - |
| - |
| 2,506,177 |
| - |
| - |
| 2,506,177 |
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Other comprehensive income | - |
| - |
| - |
| - |
| - |
| 914,058 |
| 914,058 |
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ESOP shares earned | - |
| - |
| (41,064 | ) | - |
| 183,829 |
| - |
| 142,765 |
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Common stock dividends ($0.05 per share) | - |
| - |
| - |
| (623,352 | ) | - |
| - |
| (623,352 | ) | ||||||||||
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Balances, June 30, 2020 | 13,526,625 |
| $ | 135,266 |
| $ | 132,563,670 |
| $ | 74,446,405 |
| $ | (14,032,728 | ) | $ | 3,023,289 |
| $ | 196,135,902 |
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| Accumulated |
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| Common Stock |
| Additional |
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| Unearned |
| Other |
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| Shares |
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| Paid-in |
| Retained |
| ESOP |
| Comprehensive |
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| Outstanding |
| Amount |
| Capital |
| Earnings |
| Shares |
| Income/(Loss) |
| Total |
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Balances, December 31, 2019 | 13,526,625 |
| $ | 135,266 |
| $ | 132,601,876 |
| $ | 70,111,434 |
| $ | (14,400,386 | ) | $ | (660,744 | ) | $ | 187,787,446 |
| ||||
Net income | - |
| - |
| - |
| 4,958,323 |
| - |
| - |
| 4,958,323 |
| ||||||||||
Other comprehensive income | - |
| - |
| - |
| - |
| - |
| 3,684,033 |
| 3,684,033 |
| ||||||||||
ESOP shares earned | - |
| - |
| (38,206 | ) | - |
| 367,658 |
| - |
| 329,452 |
| ||||||||||
Common stock dividends ($0.05 per share) | - |
| - |
| - |
| (623,352 | ) | - |
| - |
| (623,352 | ) | ||||||||||
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Balances, June 30, 2020 | 13,526,625 |
| $ | 135,266 |
| $ | 132,563,670 |
| $ | 74,446,405 |
| $ | (14,032,728 | ) | $ | 3,023,289 |
| $ | 196,135,902 |
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| Accumulated |
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| Common Stock |
| Additional |
|
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| Unearned |
| Other |
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| Shares |
|
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| Paid-in |
| Retained |
| ESOP |
| Comprehensive |
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| Outstanding |
| Amount |
| Capital |
| Earnings |
| Shares |
| Income/(Loss) |
| Total |
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Balances, March 31, 2019 | 100 |
| $ | 1 |
| $ | 12,750,999 |
| $ | 78,852,567 |
| $ | - |
| $ | (2,480,662 | ) | $ | 89,122,905 |
| ||||
Net income | - |
| - |
| - |
| 335,125 |
| - |
| - |
| 335,125 |
| ||||||||||
Other comprehensive income | - |
| - |
| - |
| - |
| - |
| 1,555,564 |
| 1,555,564 |
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Balances, June 30, 2019 | 100 |
| $ | 1 |
| $ | 12,750,999 |
| $ | 79,187,692 |
| $ | - |
| $ | (925,098 | ) | $ | 91,013,594 |
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| Accumulated |
|
|
| ||||||||||||||
| Common Stock |
| Additional |
|
|
| Unearned |
| Other |
|
|
| ||||||||||||
| Shares |
|
|
| Paid-in |
| Retained |
| ESOP |
| Comprehensive |
|
|
| ||||||||||
| Outstanding |
| Amount |
| Capital |
| Earnings |
| Shares |
| Income/(Loss) |
| Total |
| ||||||||||
|
|
|
|
|
|
| ||||||||||||||||||
Balances, December 31, 2018 | 100 |
| $ | 1 |
| $ | 12,750,999 |
| $ | 77,480,318 |
| $ | - |
| $ | (4,378,286 | ) | $ | 85,853,032 |
| ||||
Net income | - |
| - |
| - |
| 1,707,374 |
| - |
| - |
| 1,707,374 |
| ||||||||||
Other comprehensive income | - |
| - |
| - |
| - |
| - |
| 3,453,188 |
| 3,453,188 |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Balances, June 30, 2019 | 100 |
| $ | 1 |
| $ | 12,750,999 |
| $ | 79,187,692 |
| $ | - |
| $ | (925,098 | ) | $ | 91,013,594 |
|
Common Stock | Additional Paid-in Capital | Retained Earnings | Unearned ESOP Shares | Accumulated Other Comprehensive Income/(Loss) | Total | ||||||||||||||||||||||||||||||||||||
Shares Outstanding | Amount | ||||||||||||||||||||||||||||||||||||||||
Balances, December 31, 2020 | 13,193,760 | $ | 131,938 | $ | 124,246,425 | $ | 78,290,113 | $ | (13,664,373) | $ | 3,708,605 | $ | 192,712,708 | ||||||||||||||||||||||||||||
Net income | — | — | — | 2,562,486 | — | — | 2,562,486 | ||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (3,660,206) | (3,660,206) | ||||||||||||||||||||||||||||||||||
ESOP shares earned | — | — | (1,821) | — | 184,526 | — | 182,705 | ||||||||||||||||||||||||||||||||||
Stock based compensation | — | — | 507,624 | — | — | — | 507,624 | ||||||||||||||||||||||||||||||||||
Common stock dividends ($0.07 per share) | — | — | — | (846,947) | — | — | (846,947) | ||||||||||||||||||||||||||||||||||
Repurchase of common stock | (142,764) | (1,428) | (1,937,308) | — | — | — | (1,938,736) | ||||||||||||||||||||||||||||||||||
Balances, March 31, 2021 | 13,050,996 | $ | 130,510 | $ | 122,814,920 | $ | 80,005,652 | $ | (13,479,847) | $ | 48,399 | $ | 189,519,634 |
Common Stock | Additional Paid-in Capital | Retained Earnings | Unearned ESOP Shares | Accumulated Other Comprehensive Income/(Loss) | Total | ||||||||||||||||||||||||||||||||||||
Shares Outstanding | Amount | ||||||||||||||||||||||||||||||||||||||||
Balances, December 31, 2019 | 13,526,625 | $ | 135,266 | $ | 132,601,876 | $ | 70,111,434 | $ | (14,400,386) | $ | (660,744) | $ | 187,787,446 | ||||||||||||||||||||||||||||
Net income | — | — | — | 2,452,146 | — | — | 2,452,146 | ||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 2,769,975 | 2,769,975 | ||||||||||||||||||||||||||||||||||
ESOP shares earned | — | — | 2,858 | — | 183,829 | — | 186,687 | ||||||||||||||||||||||||||||||||||
Balances, March 31, 2020 | 13,526,625 | $ | 135,266 | $ | 132,604,734 | $ | 72,563,580 | $ | (14,216,557) | $ | 2,109,231 | $ | 193,196,254 |
| Six Months Ended June 30, | ||||||
| 2020 |
|
| 2019 |
| ||
|
|
| |||||
Operating Activities |
|
|
|
|
| ||
Net income | $ | 4,958,323 |
|
| $ | 1,707,374 |
|
Items not requiring (providing) cash |
|
|
|
|
| ||
Provision for loan losses | 1,530,000 |
|
| 1,010,000 |
| ||
Depreciation and amortization | 484,092 |
|
| 458,622 |
| ||
Deferred income tax | 357,938 |
|
| (779,000 | ) | ||
Investment securities (accretion) amortization, net | 1,133,521 |
|
| 375,216 |
| ||
Investment securities gains | (79,013 | ) |
| (61,232 | ) | ||
Gain on sale of loans and leases held for sale | (1,258,876 | ) |
| (210,798 | ) | ||
Loss on sale of real estate owned | - |
|
| 6,493 |
| ||
Accretion of loan origination fees | (447,817 | ) |
| (88,088 | ) | ||
Amortization of mortgage-servicing rights | 167,578 |
|
| 74,407 |
| ||
ESOP shares expense | 329,452 |
|
| - |
| ||
Increase in cash surrender value of life insurance | (59,921 | ) |
| (60,211 | ) | ||
Loans originated for sale | (45,705,608 | ) |
| (7,564,068 | ) | ||
Proceeds on loans sold | 49,041,089 |
|
| 8,057,168 |
| ||
Net change in |
|
|
|
|
| ||
Interest receivable | (1,668,660 | ) |
| (247,254 | ) | ||
Other assets | 715,669 |
|
| 1,616,150 |
| ||
Other liabilities | (2,094,301 | ) |
| 21,335 |
| ||
Interest payable | 51,526 |
|
| 202,352 |
| ||
Net cash provided by operating activities | 7,454,992 |
|
| 4,518,466 |
| ||
|
|
|
|
|
| ||
Investing Activities |
|
|
|
|
| ||
Purchases of securities available for sale | (82,597,349 | ) |
| (35,162,200 | ) | ||
Proceeds from maturities and paydowns of securities available for sale | 44,676,712 |
|
| 5,041,948 |
| ||
Proceeds from sales of securities available for sale | 22,177,542 |
|
| 22,456,675 |
| ||
Proceeds from maturities and paydowns of securities held to maturity | 2,585,037 |
|
| 1,445,000 |
| ||
Net change in loans | (69,212,998 | ) |
| (37,636,795 | ) | ||
Purchases of premises and equipment | (836,686 | ) |
| (373,266 | ) | ||
Purchase of FHLB stock | (1,479,300 | ) |
| (949,800 | ) | ||
Net cash used in investing activities | (84,687,042 | ) |
| (45,089,657 | ) | ||
|
|
|
|
|
| ||
Financing Activities |
|
|
|
|
| ||
Net change in |
|
|
|
|
| ||
Demand and savings deposits | 60,126,140 |
|
| 202,452,437 |
| ||
Certificates of deposit | 61,786,177 |
|
| 4,539,605 |
| ||
Advances by borrowers for taxes and insurance | (47,328 | ) |
| 28,283 |
| ||
Proceeds from FHLB advances | 40,000,000 |
|
| 57,000,000 |
| ||
Repayment of FHLB advances | (14,000,000 | ) |
| (36,000,000 | ) | ||
Dividends paid | (623,352 | ) |
| — |
| ||
Net cash provided by financing activities | 147,241,637 |
|
| 228,020,325 |
| ||
|
|
|
|
|
| ||
Net Change in Cash and Cash Equivalents | 70,009,587 |
|
| 187,449,134 |
| ||
|
|
|
|
|
| ||
Cash and Cash Equivalents, Beginning of Period | 40,596,877 |
|
| 14,971,170 |
| ||
|
|
|
|
|
| ||
Cash and Cash Equivalents, End of Period | $ | 110,606,464 |
|
| $ | 202,420,304 |
|
|
|
|
|
|
| ||
Additional Cash Flows and Supplementary Information |
|
|
|
|
| ||
Interest paid | $ | 4,987,127 |
|
| $ | 5,350,635 |
|
Transfers from loans to other real estate owned | 31,548 |
|
| 5,400 |
|
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Operating Activities | |||||||||||
Net income | $ | 2,562,486 | $ | 2,452,146 | |||||||
Items not requiring (providing) cash | |||||||||||
Provision for loan losses | 400,000 | 210,000 | |||||||||
Depreciation and amortization | 293,402 | 238,330 | |||||||||
Deferred income tax | (93,250) | (84,000) | |||||||||
Stock based compensation | 507,624 | 0 | |||||||||
Investment securities amortization, net | 712,845 | 486,500 | |||||||||
Investment securities gains | 0 | (69,139) | |||||||||
Net gains on loan and lease sales | (964,817) | (228,208) | |||||||||
Loss on sale of real estate owned | 1,278 | 0 | |||||||||
Accretion of loan origination fees | (881,097) | (38,827) | |||||||||
Amortization of mortgage-servicing rights | 128,288 | 67,132 | |||||||||
ESOP shares expense | 182,705 | 186,687 | |||||||||
Increase in cash surrender value of life insurance | (21,361) | (30,106) | |||||||||
Loans originated for sale | (27,868,042) | (6,807,172) | |||||||||
Proceeds on loans sold | 26,770,692 | 8,147,368 | |||||||||
Net change in | |||||||||||
Interest receivable | 499,613 | (195,661) | |||||||||
Other assets | (500,776) | 354,702 | |||||||||
Other liabilities | (4,151,093) | 26,550 | |||||||||
Interest payable | (14,225) | 53,692 | |||||||||
Net cash (used in) provided by operating activities | (2,435,728) | 4,769,994 | |||||||||
Investing Activities | |||||||||||
Purchases of securities available for sale | (37,779,114) | (70,744,743) | |||||||||
Proceeds from maturities and paydowns of securities available for sale | 18,783,517 | 25,505,906 | |||||||||
Proceeds from sales of securities available for sale | 0 | 11,461,388 | |||||||||
Proceeds from maturities and paydowns of securities held to maturity | 2,010,016 | 2,140,036 | |||||||||
Net change in loans | (25,020,579) | (1,169,710) | |||||||||
Proceeds from sales of real estate owned | 30,270 | 0 | |||||||||
Purchases of premises and equipment | (119,581) | (158,241) | |||||||||
Purchase of FHLB stock | 0 | (1,030,400) | |||||||||
Net cash used in investing activities | (42,095,471) | (33,995,764) | |||||||||
Financing Activities | |||||||||||
Net change in | |||||||||||
Demand and savings deposits | 50,062,196 | (8,410,494) | |||||||||
Certificates of deposit | 13,966,055 | (3,572,941) | |||||||||
Advances by borrowers for taxes and insurance | 43,386 | 68,073 | |||||||||
Proceeds from FHLB advances | 0 | 30,000,000 | |||||||||
Repayment of FHLB advances | 0 | (2,000,000) | |||||||||
Repurchase of common stock | (1,938,736) | 0 | |||||||||
Dividends paid | (846,947) | 0 | |||||||||
Net cash provided by financing activities | 61,285,954 | 16,084,638 | |||||||||
Net Change in Cash and Cash Equivalents | 16,754,755 | (13,141,132) | |||||||||
Cash and Cash Equivalents, Beginning of Period | 48,768,457 | 40,596,877 | |||||||||
Cash and Cash Equivalents, End of Period | $ | 65,523,212 | $ | 27,455,745 | |||||||
Additional Cash Flows and Supplementary Information | |||||||||||
Interest paid | $ | 1,895,448 | $ | 2,510,347 | |||||||
Transfers from loans to other real estate owned | 0 | 31,548 |
In certain circumstances, where appropriate, the terms “Company”, “we”, “us” and “our” refer collectively to (i) RMB-Delaware and First Bank Richmond with respect to discussions in this document involving matters occurring prior to completion of the corporate reorganization and (ii) RMB-Maryland and First Bank Richmond with respect to discussions in this document involving matters occurring post-corporate reorganization, in each case unless the context indicates another meaning.
In certain circumstances, where appropriate, the terms “we”, “us” and “our” refer collectively to (i) RMB-Delaware and First Bank Richmond with respect to discussions in this document involving matters occurring prior to completion of the corporate reorganization and (ii) the Company and First Bank Richmond with respect to discussions in this document involving matters occurring post-corporate reorganization, in each case unless the context indicates another meaning.
For all classes, all interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. The Company requires a period of satisfactory performance of not less than six months before returning a nonaccrual loan to accrual status.
In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of referenceReference Rate Reform on Financial Reporting. This ASU applies to contracts, hedging relationships and other transactions that reference LIBOR or other rate references expected to be discontinued because of reference rate reform. The ASU permits an entity to make necessary modifications to eligible contracts or transactions without requiring contract remeasurement or reassessment of a previous accounting determination. This ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The Company does not expect the adoption of ASU 2020-04 todid not have a material impact on itsthe Company's consolidated financial statements.
In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. This ASU contains some technical adjustments related to the fair value disclosure requirements of public companies. Included in this ASU is the additional disclosure requirement of unrealized gains and losses for the period in recurring level 3 fair value disclosures and the range and weighted average of significant unobservable inputs, among other technical changes. The Company adopted ASU 2018-13 on January 1, 2020. The adoption of ASU 2018-132019-12 did not have a material impact on the Company’sCompany's consolidated financial statements.
| June 30, 2020 | ||||||||||
|
|
| Gross |
| Gross |
|
| ||||
| Amortized |
| Unrealized |
| Unrealized |
| Fair | ||||
| Cost |
| Gains |
| Losses |
| Value | ||||
Available for sale |
|
|
|
|
|
|
| ||||
SBA Pools | $ | 22,911 |
| $ | 75 |
| $ | 215 |
| $ | 22,771 |
Federal agencies | 7,511 |
| 14 |
| 6 |
| 7,519 | ||||
State and municipal obligations | 60,681 |
| 1,642 |
| 126 |
| 62,197 | ||||
Mortgage-backed securities - |
|
|
|
|
|
|
| ||||
government-sponsored enterprises |
|
|
|
|
|
|
| ||||
(GSE) residential | 126,261 |
| 2,471 |
| 28 |
| 128,704 | ||||
Equity securities | 13 |
| - |
| - |
| 13 | ||||
| 217,377 |
| 4,202 |
| 375 |
| 221,204 | ||||
Held to maturity |
|
|
|
|
|
|
| ||||
State and municipal obligations | 13,320 |
| 344 |
| - |
| 13,664 | ||||
| 13,320 |
| 344 |
| - |
| 13,664 | ||||
|
|
|
|
|
|
|
| ||||
Total investment securities | $ | 230,697 |
| $ | 4,546 |
| $ | 375 |
| $ | 234,868 |
| December 31, 2019 | ||||||||||
|
|
| Gross |
| Gross |
|
| ||||
| Amortized |
| Unrealized |
| Unrealized |
| Fair | ||||
| Cost |
| Gains |
| Losses |
| Value | ||||
Available for sale |
|
|
|
|
|
|
| ||||
U.S. Treasury securities | $ | 2,997 |
| $ | - |
| $ | 6 |
| $ | 2,991 |
SBA Pools | 14,497 |
| - |
| 114 |
| 14,383 | ||||
Federal agencies | 21,765 |
| - |
| 119 |
| 21,646 | ||||
State and municipal obligations | 45,635 |
| 357 |
| 152 |
| 45,840 | ||||
Mortgage-backed securities - |
|
|
|
|
|
|
| ||||
government-sponsored enterprises |
|
|
|
|
|
|
| ||||
(GSE) residential | 117,769 |
| 111 |
| 969 |
| 116,911 | ||||
Equity securities | 13 |
| - |
| - |
| 13 | ||||
| 202,676 |
| 468 |
| 1,360 |
| 201,784 | ||||
Held to maturity |
|
|
|
|
|
|
| ||||
State and municipal obligations | 15,917 |
| 244 |
| 5 |
| 16,156 | ||||
| 15,917 |
| - |
| 5 |
| 16,156 | ||||
|
|
|
|
|
|
|
| ||||
Total investment securities | $ | 218,593 |
| $ | 712 |
| $ | 1,365 |
| $ | 217,940 |
March 31, 2021 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||
Available for sale | |||||||||||||||||||||||
SBA Pools | $ | 15,647 | $ | 36 | $ | 155 | $ | 15,528 | |||||||||||||||
Federal agencies | 7,756 | 5 | 228 | 7,533 | |||||||||||||||||||
State and municipal obligations | 100,347 | 1,599 | 1,610 | 100,336 | |||||||||||||||||||
Mortgage-backed securities - government-sponsored enterprises (GSE) residential | 134,335 | 1,618 | 1,204 | 134,749 | |||||||||||||||||||
Equity securities | 13 | 0 | 0 | 13 | |||||||||||||||||||
258,098 | 3,258 | 3,197 | 258,159 | ||||||||||||||||||||
Held to maturity | |||||||||||||||||||||||
State and municipal obligations | 10,211 | 234 | 0 | 10,445 | |||||||||||||||||||
10,211 | 234 | 0 | 10,445 | ||||||||||||||||||||
Total investment securities | $ | 268,309 | $ | 3,492 | $ | 3,197 | $ | 268,604 |
December 31, 2020 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||
Available for sale | |||||||||||||||||||||||
SBA Pools | $ | 16,283 | $ | 111 | $ | 94 | $ | 16,300 | |||||||||||||||
Federal agencies | 5,760 | 12 | 15 | 5,757 | |||||||||||||||||||
State and municipal obligations | 93,616 | 2,778 | 109 | 96,285 | |||||||||||||||||||
Mortgage-backed securities - government-sponsored enterprises (GSE) residential | 124,139 | 2,080 | 69 | 126,150 | |||||||||||||||||||
Equity securities | 13 | 0 | 0 | 13 | |||||||||||||||||||
239,811 | 4,981 | 287 | 244,505 | ||||||||||||||||||||
Held to maturity | |||||||||||||||||||||||
State and municipal obligations | 12,225 | 295 | 0 | 12,520 | |||||||||||||||||||
12,225 | 295 | 0 | 12,520 | ||||||||||||||||||||
Total investment securities | $ | 252,036 | $ | 5,276 | $ | 287 | $ | 257,025 |
| Available for Sale |
| Held to Maturity | ||||||||
| Amortized |
| Fair |
| Amortized |
| Fair | ||||
| Cost |
| Value |
| Cost |
| Value | ||||
|
|
|
|
|
|
|
| ||||
Within one year | $ | 443 |
| $ | 444 |
| $ | 2,858 |
| $ | 2,875 |
One to five years | 6,005 |
| 6,175 |
| 7,233 |
| 7,424 | ||||
Five to ten years | 27,793 |
| 28,115 |
| 2,169 |
| 2,283 | ||||
After ten years | 56,862 |
| 57,753 |
| 1,060 |
| 1,082 | ||||
| 91,103 |
| 92,487 |
| 13,320 |
| 13,664 | ||||
Mortgage-backed securities - |
|
|
|
|
|
|
| ||||
GSE residential | 126,261 |
| 128,704 |
| - |
| - | ||||
Equity securities | 13 |
| 13 |
| - |
| - | ||||
|
|
|
|
|
|
|
| ||||
Totals | $ | 217,377 |
| $ | 221,204 |
| $ | 13,320 |
| $ | 13,664 |
Available for Sale | Held to Maturity | ||||||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||
Within one year | $ | 954 | $ | 959 | $ | 1,751 | $ | 1,766 | |||||||||||||||
One to five years | 6,331 | 6,520 | 5,373 | 5,491 | |||||||||||||||||||
Five to ten years | 28,444 | 28,660 | 2,027 | 2,118 | |||||||||||||||||||
After ten years | 88,021 | 87,258 | 1,060 | 1,070 | |||||||||||||||||||
123,750 | 123,397 | 10,211 | 10,445 | ||||||||||||||||||||
Mortgage-backed securities –GSE residential | 134,335 | 134,749 | 0 | 0 | |||||||||||||||||||
Equity securities | 13 | 13 | — | — | |||||||||||||||||||
Totals | $ | 258,098 | $ | 258,159 | $ | 10,211 | $ | 10,445 |
$5,000, respectively.
The following tables show the Company’s investments by gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2020March 31, 2021 and December 31, 2019:
| June 30, 2020 | ||||||||||||||||
| Less Than 12 Months |
| 12 Months or More |
| Total | ||||||||||||
Description of | Fair |
| Unrealized |
| Fair |
| Unrealized |
| Fair |
| Unrealized | ||||||
Securities | Value |
| Losses |
| Value |
| Losses |
| Value |
| Losses | ||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Available-for-sale |
|
|
|
|
|
|
|
|
|
|
| ||||||
SBA Pools | $ | 19,099 |
| $ | 215 |
| $ | - |
| $ | - |
| $ | 19,099 |
| $ | 215 |
Federal agencies | 4,240 |
| 6 |
| - |
| - |
| 4,240 |
| 6 | ||||||
State and municipal obligations | 8,932 |
| 126 |
| - |
| - |
| 8,932 |
| 126 | ||||||
Mortgage-backed securities - |
|
|
|
|
|
|
|
|
|
|
| ||||||
GSE residential | 6,874 |
| 25 |
| 1,478 |
| 3 |
| 8,352 |
| 28 | ||||||
Total available-for-sale | 39,145 |
| 372 |
| 1,478 |
| 3 |
| 40,623 |
| 375 | ||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Held-to-maturity |
|
|
|
|
|
|
|
|
|
|
| ||||||
State and municipal obligations | 80 |
| - |
| - |
| - |
| 80 |
| - | ||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total temporarily |
|
|
|
|
|
|
|
|
|
|
| ||||||
impaired securities | $ | 39,225 |
| $ | 372 |
| $ | 1,478 |
| $ | 3 |
| $ | 40,703 |
| $ | 375 |
|
|
|
|
|
|
|
|
|
|
|
|
| December 31, 2019 | ||||||||||||||||
| Less Than 12 Months |
| 12 Months or More |
| Total | ||||||||||||
Description of | Fair |
| Unrealized |
| Fair |
| Unrealized |
| Fair |
| Unrealized | ||||||
Securities | Value |
| Losses |
| Value |
| Losses |
| Value |
| Losses | ||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Available-for-sale |
|
|
|
|
|
|
|
|
|
|
| ||||||
U.S. Treasury securities | $ | 2,991 |
| $ | 6 |
| $ | - |
| $ | - |
| $ | 2,991 |
| $ | 6 |
SBA Pools | 14,262 |
| 114 |
| - |
| - |
| 14,262 |
| 114 | ||||||
Federal agencies | 9,657 |
| 109 |
| 2,990 |
| 10 |
| 12,647 |
| 119 | ||||||
State and municipal obligations | 12,606 |
| 130 |
| 2,948 |
| 22 |
| 15,554 |
| 152 | ||||||
Mortgage-backed securities - |
|
|
|
|
|
|
|
|
|
|
| ||||||
GSE residential | 57,928 |
| 464 |
| 34,344 |
| 505 |
| 92,272 |
| 969 | ||||||
Total available-for-sale | 97,444 |
| 823 |
| 40,282 |
| 537 |
| 137,726 |
| 1,360 | ||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Held-to-maturity |
|
|
|
|
|
|
|
|
|
|
| ||||||
State and municipal obligations | 665 |
| 5 |
| - |
| - |
| 665 |
| 5 | ||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total temporarily |
|
|
|
|
|
|
|
|
|
|
| ||||||
impaired securities | $ | 98,109 |
| $ | 828 |
| $ | 40,282 |
| $ | 537 |
| $ | 138,391 |
| $ | 1,365 |
|
|
|
|
|
|
|
|
|
|
|
|
2020: March 31, 2021.Description of
SecuritiesMarch 31, 2021 Less Than 12 Months 12 Months or More Total Fair
ValueUnrealized
LossesFair
ValueUnrealized
LossesFair
ValueUnrealized
LossesAvailable-for-sale SBA Pools $ 4,318 $ 83 $ 7,984 $ 72 $ 12,302 $ 155 Federal agencies 6,773 228 0 0 6,773 228 State and municipal obligations 45,177 1,505 1,475 105 46,652 1,610 Mortgage-backed securities - GSE residential 54,165 1,202 534 2 54,699 1,204 Total temporarily impaired securities $ 110,433 $ 3,018 $ 9,993 $ 179 $ 120,426 $ 3,197 Description of
SecuritiesDecember 31, 2020 Less Than 12 Months 12 Months or More Total Fair
ValueUnrealized
LossesFair
ValueUnrealized
LossesFair
ValueUnrealized
LossesAvailable-for-sale SBA Pools $ 5,213 $ 46 $ 5,687 $ 48 $ 10,900 $ 94 Federal agencies 985 15 0 0 985 15 State and municipal obligations 8,587 109 0 0 8,587 109 Mortgage-backed securities - GSE residential 24,013 67 684 2 24,697 69 Total available-for-sale 38,798 237 6,371 50 45,169 287 Held-to-maturity State and municipal obligations 130 0 0 0 130 0 Total temporarily impaired securities $ 38,928 $ 237 $ 6,371 $ 50 $ 45,299 $ 287 June 30, 2020.June 30, 2020.March 31, 2021.
State and Municipal Obligations. The unrealized losses on the Company’s investments in securities of state and municipal obligations were caused by interest rate changes and illiquidity. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at June 30, 2020.
Categories
| June 30, |
| December 31, | ||
| 2020 |
| 2019 | ||
| |||||
Commercial mortgage | $ | 242,036 |
| $ | 229,410 |
Commercial and industrial | 141,184 |
| 84,549 | ||
Construction and development | 62,372 |
| 53,426 | ||
Multi-family | 58,709 |
| 66,002 | ||
Residential mortgage | 126,146 |
| 131,294 | ||
Home equity | 6,522 |
| 6,996 | ||
Direct financing leases | 114,352 |
| 109,592 | ||
Consumer | 12,550 |
| 13,534 | ||
763,871 |
| 694,803 | |||
Less |
|
|
| ||
Allowance for loan and lease losses | 8,521 |
| 7,089 | ||
Deferred loan fees | 2,427 |
| 456 | ||
|
|
|
| ||
$ | 752,923 |
| $ | 687,258 | |
|
|
|
|
March 31, 2021 | December 31, 2020 | ||||||||||
Commercial mortgage | $ | 254,561 | $ | 247,564 | |||||||
Commercial and industrial | 128,126 | 122,831 | |||||||||
Construction and development | 67,728 | 58,424 | |||||||||
Multi-family | 60,608 | 55,998 | |||||||||
Residential mortgage | 128,947 | 127,108 | |||||||||
Home equity | 6,104 | 5,982 | |||||||||
Direct financing leases | 117,725 | 117,171 | |||||||||
Consumer | 13,183 | 13,257 | |||||||||
776,982 | 748,335 | ||||||||||
Less | |||||||||||
Allowance for loan and lease losses | 10,959 | 10,586 | |||||||||
Deferred loan fees | 2,292 | 1,349 | |||||||||
$ | 763,731 | $ | 736,400 |
|
|
|
| Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Commercial |
|
| and |
|
| Residential |
|
|
|
|
|
|
|
|
|
| ||||||
| Mortgage (1) |
|
| Industrial |
|
| Mortgage (2) |
|
| Leases |
|
| Consumer |
|
| Total |
| ||||||
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Three Months Ended June 30, 2020: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Balance, beginning of period | $ | 4,668 |
|
| $ | 1,772 |
|
| $ | 148 |
|
| $ | 583 |
|
| $ | 135 |
|
| $ | 7,306 |
|
Provision (credit) for losses | 844 |
|
| (94 | ) |
| 172 |
|
| 378 |
|
| 20 |
|
| 1,320 |
| ||||||
Charge-offs | - |
|
| - |
|
| (20 | ) |
| (134 | ) |
| (16 | ) |
| (170 | ) | ||||||
Recoveries | 5 |
|
| 32 |
|
| 8 |
|
| 11 |
|
| 9 |
|
| 65 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Balance, end of period | $ | 5,517 |
|
| $ | 1,710 |
|
| $ | 308 |
|
| $ | 838 |
|
| $ | 148 |
|
| $ | 8,521 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Six Months Ended June 30, 2020: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Balance, beginning of period | $ | 4,564 |
|
| $ | 1,852 |
|
| $ | 109 |
|
| $ | 426 |
|
| $ | 138 |
|
| $ | 7,089 |
|
Provision (credit) for losses | 917 |
|
| (182 | ) |
| 210 |
|
| 569 |
|
| 16 |
|
| 1,530 |
| ||||||
Charge-offs | - |
|
| - |
|
| (35 | ) |
| (190 | ) |
| (21 | ) |
| (246 | ) | ||||||
Recoveries | 36 |
|
| 40 |
|
| 24 |
|
| 33 |
|
| 15 |
|
| 148 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Balance, end of period | $ | 5,517 |
|
| $ | 1,710 |
|
| $ | 308 |
|
| $ | 838 |
|
| $ | 148 |
|
| $ | 8,521 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020:
Commercial Mortgage (1) | Commercial and Industrial | Residential Mortgage (2) | Leases | Consumer | Total | ||||||||||||||||||||||||||||||
Three Months Ended March 31, 2021: | |||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 7,797 | $ | 1,248 | $ | 270 | $ | 1,054 | $ | 217 | $ | 10,586 | |||||||||||||||||||||||
Provision (credit) for losses | 561 | (133) | (19) | 75 | (84) | 400 | |||||||||||||||||||||||||||||
Charge-offs | 0 | 0 | 0 | (194) | (11) | (205) | |||||||||||||||||||||||||||||
Recoveries | 1 | 23 | 6 | 94 | 54 | 178 | |||||||||||||||||||||||||||||
Balance, end of period | $ | 8,359 | $ | 1,138 | $ | 257 | $ | 1,029 | $ | 176 | $ | 10,959 | |||||||||||||||||||||||
(2) Residential mortgage includes one- to four-familyloans and home equitycommercial construction and development loans.
|
|
|
| Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Commercial |
|
| and |
|
| Residential |
|
|
|
|
|
|
|
|
|
| ||||||
| Mortgage (1) |
|
| Industrial |
|
| Mortgage (2) |
|
| Leases |
|
| Consumer |
|
| Total |
| ||||||
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Three Months Ended June 30, 2019: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Balance, beginning of period | $ | 3,420 |
|
| $ | 1,790 |
|
| $ | 117 |
|
| $ | 392 |
|
| $ | 117 |
|
| $ | 5,836 |
|
Provision (credit) for losses | 466 |
|
| (26 | ) |
| 30 |
|
| 12 |
|
| 3 |
|
| 485 |
| ||||||
Charge-offs | - |
|
| - |
|
| (34 | ) |
| (95 | ) |
| (15 | ) |
| (144 | ) | ||||||
Recoveries | 6 |
|
| 4 |
|
| 9 |
|
| 76 |
|
| 9 |
|
| 104 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Balance, end of period | $ | 3,892 |
|
| $ | 1,768 |
|
| $ | 122 |
|
| $ | 385 |
|
| $ | 114 |
|
| $ | 6,281 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Six Months Ended June 30, 2019: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Balance, beginning of period | $ | 3,147 |
|
| $ | 1,817 |
|
| $ | 139 |
|
| $ | 389 |
|
| $ | 108 |
|
| $ | 5,600 |
|
Provision (credit) for losses | 735 |
|
| 195 |
|
| (7 | ) |
| 50 |
|
| 37 |
|
| 1,010 |
| ||||||
Charge-offs | - |
|
| (250 | ) |
| (36 | ) |
| (177 | ) |
| (49 | ) |
| (512 | ) | ||||||
Recoveries | 10 |
|
| 6 |
|
| 26 |
|
| 123 |
|
| 18 |
|
| 183 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Balance, end of period | $ | 3,892 |
|
| $ | 1,768 |
|
| $ | 122 |
|
| $ | 385 |
|
| $ | 114 |
|
| $ | 6,281 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Commercial mortgage includes commercial and multifamily real estate loans.
Commercial Mortgage (1) | Commercial and Industrial | Residential Mortgage (2) | Leases | Consumer | Total | ||||||||||||||||||||||||||||||
Three Months Ended March 31, 2020: | |||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 4,564 | $ | 1,852 | $ | 109 | $ | 426 | $ | 138 | $ | 7,089 | |||||||||||||||||||||||
Provision (credit) for losses | 72 | (87) | 38 | 190 | (4) | 210 | |||||||||||||||||||||||||||||
Charge-offs | 0 | 0 | (15) | (55) | (5) | (75) | |||||||||||||||||||||||||||||
Recoveries | 32 | 7 | 16 | 22 | 6 | 83 | |||||||||||||||||||||||||||||
Balance, end of period | $ | 4,668 | $ | 1,772 | $ | 148 | $ | 583 | $ | 135 | $ | 7,306 | |||||||||||||||||||||||
| June 30, 2020 | ||||||||||||||||
|
|
| Commercial |
|
|
|
|
|
|
|
| ||||||
| Commercial |
| and |
| Residential |
|
|
|
|
|
| ||||||
| Mortgage (1) |
| Industrial |
| Mortgage (2) |
| Leases |
| Consumer |
| Total | ||||||
|
|
|
|
| |||||||||||||
Allowance for loan and lease losses: |
|
|
|
|
|
|
|
|
|
|
| ||||||
Individually evaluated for impairment | $ | 1 |
| $ | 201 |
| $ | - |
| $ | - |
| $ | - |
| $ | 202 |
Collectively evaluated for impairment | 5,516 |
| 1,509 |
| 308 |
| 838 |
| 148 |
| 8,319 | ||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Balance, June 30 | $ | 5,517 |
| $ | 1,710 |
| $ | 308 |
| $ | 838 |
| $ | 148 |
| $ | 8,521 |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Loans and leases: |
|
|
|
|
|
|
|
|
|
|
| ||||||
Individually evaluated for impairment | $ | 698 |
| $ | 617 |
| $ | 225 |
| $ | - |
| $ | - |
| $ | 1,540 |
Collectively evaluated for impairment | 392,835 |
| 131,344 |
| 107,114 |
| 114,352 |
| 16,686 |
| 762,331 | ||||||
Ending balance: June 30 | $ | 393,533 |
| $ | 131,961 |
| $ | 107,339 |
| $ | 114,352 |
| $ | 16,686 |
| $ | 763,871 |
March 31, 2021 | |||||||||||||||||||||||||||||||||||
Commercial Mortgage (1) | Commercial and Industrial | Residential Mortgage (2) | Leases | Consumer | Total | ||||||||||||||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 811 | $ | 52 | $ | 0 | $ | 0 | $ | 0 | $ | 863 | |||||||||||||||||||||||
Collectively evaluated for impairment | 7,548 | 1,086 | 257 | 1,029 | 176 | 10,096 | |||||||||||||||||||||||||||||
Balance, March 31 | $ | 8,359 | $ | 1,138 | $ | 257 | $ | 1,029 | $ | 176 | $ | 10,959 | |||||||||||||||||||||||
Loans and leases: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | 5,581 | 450 | 178 | 0 | 0 | 6,209 | |||||||||||||||||||||||||||||
Collectively evaluated for impairment | 427,822 | 111,660 | 96,465 | 117,725 | 17,101 | 770,773 | |||||||||||||||||||||||||||||
Ending Balance, March 31 | $ | 433,403 | $ | 112,110 | $ | 96,643 | $ | 117,725 | $ | 17,101 | $ | 776,982 |
(1)Commercial mortgage includes commercial and multifamily real estate loans and commercial construction and development loans.
| December 31, 2019 | ||||||||||||||||
|
|
| Commercial |
|
|
|
|
|
|
|
| ||||||
| Commercial |
| and |
| Residential |
|
|
|
|
|
| ||||||
| Mortgage (1) |
| Industrial |
| Mortgage (2) |
| Leases |
| Consumer |
| Total | ||||||
|
|
|
|
| |||||||||||||
Allowance for loan and lease losses: |
|
|
|
|
|
|
|
|
|
|
| ||||||
Individually evaluated for impairment | $ | - |
| $ | 202 |
| $ | - |
| $ | - |
| $ | - |
| $ | 202 |
Collectively evaluated for impairment | 4,564 |
| 1,650 |
| 109 |
| 426 |
| 138 |
| 6,887 | ||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Balance, December 31 | $ | 4,564 |
| $ | 1,852 |
| $ | 109 |
| $ | 426 |
| $ | 138 |
| $ | 7,089 |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Loans and leases: |
|
|
|
|
|
|
|
|
|
|
| ||||||
Individually evaluated for impairment | $ | 803 |
| $ | 694 |
| $ | 347 |
| $ | - |
| $ | - |
| $ | 1,844 |
Collectively evaluated for impairment | 377,494 |
| 73,920 |
| 114,061 |
| 109,592 |
| 17,892 |
| 692,959 | ||||||
Ending balance: December 31 | $ | 378,297 |
| $ | 74,614 |
| $ | 114,408 |
| $ | 109,592 |
| $ | 17,892 |
| $ | 694,803 |
12
December 31, 2020 | |||||||||||||||||||||||||||||||||||
Commercial Mortgage (1) | Commercial and Industrial | Residential Mortgage (2) | Leases | Consumer | Total | ||||||||||||||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 150 | $ | 52 | $ | 0 | $ | 0 | $ | 0 | $ | 202 | |||||||||||||||||||||||
Collectively evaluated for impairment | 7,647 | 1,196 | 270 | 1,054 | 217 | 10,384 | |||||||||||||||||||||||||||||
Balance, December 31 | $ | 7,797 | $ | 1,248 | $ | 270 | $ | 1,054 | $ | 217 | $ | 10,586 | |||||||||||||||||||||||
Loans and leases: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | 701 | 493 | 269 | 0 | 0 | 1,463 | |||||||||||||||||||||||||||||
Collectively evaluated for impairment | 404,278 | 106,794 | 101,380 | 117,171 | 17,249 | 746,872 | |||||||||||||||||||||||||||||
Ending Balance, December 31 | $ | 404,979 | $ | 107,287 | $ | 101,649 | $ | 117,171 | $ | 17,249 | $ | 748,335 |
Grade 2 – Quality Loans
and Leases
·
·
·
·
Grade 7 – Doubtful
loans and leases.
Residential, Brokered and Consumer
| June 30, 2020 | |||||||||||||||||
|
| Commercial | Construction |
|
|
|
|
|
| |||||||||
| Commercial | and | and | Multi- | Residential | Home |
|
|
| |||||||||
| Mortgage | Industrial | Development | Family | Mortgage | Equity | Leases | Consumer | Total | |||||||||
1-4 Pass | $ | 233,028 | $ | 134,189 | $ | 62,372 | $ | 58,709 | $ | 123,225 | $ | 6,370 | $ | 114,190 | $ | 12,533 | $ | 744,616 |
5 Special Mention | 7,432 | 4,171 | - | - | 176 | 64 | - | - | 11,843 | |||||||||
6 Substandard | 1,576 | 2,824 | - | - | 2,745 | 88 | 59 | 17 | 7,309 | |||||||||
7 Doubtful | - | - | - | - | - | - | 103 | - | 103 | |||||||||
8 Loss | - | - | - | - | - | - | - | - | - | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 242,036 | $ | 141,184 | $ | 62,372 | $ | 58,709 | $ | 126,146 | $ | 6,522 | $ | 114,352 | $ | 12,550 | $ | 763,871 |
March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Mortgage | Industrial | Construction and Development | Multi- Family | Residential Mortgage | Home Equity | Leases | Consumer | Total | |||||||||||||||||||||||||||||||||||||||||||||
1-4 Pass | $ | 246,578 | $ | 121,798 | $ | 62,828 | $ | 60,608 | $ | 126,766 | $ | 6,033 | $ | 117,661 | $ | 12,867 | $ | 755,139 | |||||||||||||||||||||||||||||||||||
5 Special Mention | 6,939 | 3,514 | 0 | 0 | 0 | 0 | 0 | 0 | 10,453 | ||||||||||||||||||||||||||||||||||||||||||||
6 Substandard | 1,044 | 2,814 | 4,900 | 0 | 2,181 | 71 | 11 | 316 | 11,337 | ||||||||||||||||||||||||||||||||||||||||||||
7 Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 53 | 0 | 53 | ||||||||||||||||||||||||||||||||||||||||||||
8 Loss | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||
$ | 254,561 | $ | 128,126 | $ | 67,728 | $ | 60,608 | $ | 128,947 | $ | 6,104 | $ | 117,725 | $ | 13,183 | $ | 776,982 |
| December 31, 2019 | |||||||||||||||||
|
| Commercial | Construction |
|
|
|
|
|
| |||||||||
| Commercial | and | and | Multi- | Residential | Home |
|
|
| |||||||||
| Mortgage | Industrial | Development | Family | Mortgage | Equity | Leases | Consumer | Total | |||||||||
1-4 Pass | $ | 220,240 | $ | 75,814 | $ | 53,426 | $ | 66,002 | $ | 127,888 | $ | 6,871 | $ | 109,424 | $ | 13,519 | $ | 673,184 |
5 Special Mention | 7,489 | 5,731 | - | - | 189 | 64 | - | - | 13,473 | |||||||||
6 Substandard | 1,681 | 3,004 | - | - | 3,217 | 61 | 94 | 15 | 8,072 | |||||||||
7 Doubtful | - | - | - | - | - | - | 74 | - | 74 | |||||||||
8 Loss | - | - | - | - | - | - | - | - | - | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 229,410 | $ | 84,549 | $ | 53,426 | $ | 66,002 | $ | 131,294 | $ | 6,996 | $ | 109,592 | $ | 13,534 | $ | 694,803 |
December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Mortgage | Industrial | Construction and Development | Multi- Family | Residential Mortgage | Home Equity | Leases | Consumer | Total | |||||||||||||||||||||||||||||||||||||||||||||
1-4 Pass | $ | 239,055 | $ | 114,411 | $ | 53,524 | $ | 55,998 | $ | 123,963 | $ | 5,916 | $ | 117,136 | $ | 13,256 | $ | 723,259 | |||||||||||||||||||||||||||||||||||
5 Special Mention | 6,976 | 5,542 | 4,900 | 0 | 0 | 0 | 0 | 0 | 17,418 | ||||||||||||||||||||||||||||||||||||||||||||
6 Substandard | 1,533 | 2,878 | 0 | 0 | 3,145 | 66 | 15 | 1 | 7,638 | ||||||||||||||||||||||||||||||||||||||||||||
7 Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 20 | 0 | 20 | ||||||||||||||||||||||||||||||||||||||||||||
8 Loss | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||
$ | 247,564 | $ | 122,831 | $ | 58,424 | $ | 55,998 | $ | 127,108 | $ | 5,982 | $ | 117,171 | $ | 13,257 | $ | 748,335 |
| June 30, 2020 | |||||||||||||||||||
| Delinquent Loans |
|
|
| Total |
| Total Loans | |||||||||||||
| 30-59 Days Past Due |
| 60-89 Days Past Due |
| 90 Days and Over |
| Total Past Due |
| Current |
| Portfolio Loans and Leases |
| and Leases > 90 Days Accruing | |||||||
|
|
|
|
|
| |||||||||||||||
Commercial mortgage | $ | - |
| $ | - |
| $ | 76 |
| $ | 76 |
| $ | 241,960 |
| $ | 242,036 |
| $ | - |
Commercial and industrial | - |
| - |
| 467 |
| 467 |
| 140,717 |
| 141,184 |
| 55 | |||||||
Construction and development | 40 |
| 1,586 |
| - |
| 1,626 |
| 60,746 |
| 62,372 |
| - | |||||||
Multi-family | - |
| - |
| 1,047 |
| 1,047 |
| 57,662 |
| 58,709 |
| 1,047 | |||||||
Residential mortgage | 567 |
| 507 |
| 2,261 |
| 3,335 |
| 122,811 |
| 126,146 |
| 2,133 | |||||||
Home equity | - |
| 43 |
| 45 |
| 88 |
| 6,434 |
| 6,522 |
| 45 | |||||||
Leases | 22 |
| 115 |
| 4 |
| 141 |
| 114,211 |
| 114,352 |
| 4 | |||||||
Consumer | 174 |
| 11 |
| 17 |
| 202 |
| 12,348 |
| 12,550 |
| 17 | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Totals | $ | 803 |
| $ | 2,262 |
| $ | 3,917 |
| $ | 6,982 |
| $ | 756,889 |
| $ | 763,871 |
| $ | 3,301 |
| December 31, 2019 | |||||||||||||||||||
| Delinquent Loans |
|
|
| Total |
| Total Loans | |||||||||||||
| 30-59 Days Past Due |
| 60-89 Days Past Due |
| 90 Days and Over |
| Total Past Due |
| Current |
| Portfolio Loans and Leases |
| and Leases > 90 Days Accruing | |||||||
|
|
|
|
|
| |||||||||||||||
Commercial mortgage | $ | 217 |
| $ | - |
| $ | 184 |
| $ | 401 |
| $ | 229,009 |
| $ | 229,410 |
| $ | - |
Commercial and industrial | 220 |
| 1,092 |
| 438 |
| 1,750 |
| 82,799 |
| 84,549 |
| 3 | |||||||
Construction and development | - |
| 257 |
| 249 |
| 506 |
| 52,920 |
| 53,426 |
| 249 | |||||||
Multi-family | - |
| - |
| - |
| - |
| 66,002 |
| 66,002 |
| - | |||||||
Residential mortgage | 762 |
| 240 |
| 2,452 |
| 3,454 |
| 127,840 |
| 131,294 |
| 2,256 | |||||||
Home equity | 189 |
| 36 |
| 15 |
| 240 |
| 6,756 |
| 6,996 |
| 15 | |||||||
Leases | 108 |
| 29 |
| 79 |
| 216 |
| 109,376 |
| 109,592 |
| 49 | |||||||
Consumer | 271 |
| 35 |
| 15 |
| 321 |
| 13,213 |
| 13,534 |
| 15 | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Totals | $ | 1,767 |
| $ | 1,689 |
| $ | 3,432 |
| $ | 6,888 |
| $ | 687,915 |
| $ | 694,803 |
| $ | 2,587 |
2020:
March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
Delinquent Loans | Current | Total Portfolio Loans and Leases | Total Loans and Leases > 90 Days Accruing | ||||||||||||||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days and Over | Total Past Due | ||||||||||||||||||||||||||||||||||||||
Commercial mortgage | $ | 431 | $ | 0 | $ | 210 | $ | 641 | $ | 253,920 | $ | 254,561 | $ | 134 | |||||||||||||||||||||||||||
Commercial and industrial | 0 | 24 | 397 | 421 | 127,705 | 128,126 | 0 | ||||||||||||||||||||||||||||||||||
Construction and development | 0 | 0 | 4,900 | 4,900 | 62,828 | 67,728 | 0 | ||||||||||||||||||||||||||||||||||
Multi-family | 0 | 0 | 0 | 0 | 60,608 | 60,608 | 0 | ||||||||||||||||||||||||||||||||||
Residential mortgage | 2,071 | 142 | 2,154 | 4,367 | 124,580 | 128,947 | 2,029 | ||||||||||||||||||||||||||||||||||
Home equity | 7 | 0 | 31 | 38 | 6,066 | 6,104 | 31 | ||||||||||||||||||||||||||||||||||
Leases | 136 | 21 | 0 | 157 | 117,568 | 117,725 | 0 | ||||||||||||||||||||||||||||||||||
Consumer | 140 | 277 | 316 | 733 | 12,450 | 13,183 | 315 | ||||||||||||||||||||||||||||||||||
Totals | $ | 2,785 | $ | 464 | $ | 8,008 | $ | 11,257 | $ | 765,725 | $ | 776,982 | $ | 2,509 |
December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
Delinquent Loans | Current | Total Portfolio Loans and Leases | Total Loans and Leases > 90 Days Accruing | ||||||||||||||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days and Over | Total Past Due | ||||||||||||||||||||||||||||||||||||||
Commercial mortgage | $ | 340 | $ | 0 | $ | 1,177 | $ | 1,517 | $ | 246,047 | $ | 247,564 | $ | 1,100 | |||||||||||||||||||||||||||
Commercial and industrial | 1,251 | 203 | 439 | 1,893 | 120,938 | 122,831 | 0 | ||||||||||||||||||||||||||||||||||
Construction and development | 0 | 4,900 | 0 | 4,900 | 53,524 | 58,424 | 0 | ||||||||||||||||||||||||||||||||||
Multi-family | 0 | 0 | 0 | 0 | 55,998 | 55,998 | 0 | ||||||||||||||||||||||||||||||||||
Residential mortgage | 1,913 | 243 | 2,680 | 4,836 | 122,272 | 127,108 | 2,554 | ||||||||||||||||||||||||||||||||||
Home equity | 138 | 15 | 25 | 178 | 5,804 | 5,982 | 25 | ||||||||||||||||||||||||||||||||||
Leases | 234 | 65 | 0 | 299 | 116,872 | 117,171 | 0 | ||||||||||||||||||||||||||||||||||
Consumer | 318 | 129 | 317 | 764 | 12,493 | 13,257 | 317 | ||||||||||||||||||||||||||||||||||
Totals | $ | 4,194 | $ | 5,555 | $ | 4,638 | $ | 14,387 | $ | 733,948 | $ | 748,335 | $ | 3,996 |
| June 30, 2020 | |||||||
|
|
| Unpaid |
|
| |||
| Recorded |
| Principal |
| Specific | |||
| Balance |
| Balance |
| Allowance | |||
|
| |||||||
Loans without a specific |
|
|
|
|
| |||
valuation allowance |
|
|
|
|
| |||
Commercial mortgage | $ | 218 |
| $ | 258 |
| $ | - |
Commercial and industrial | 412 |
| 738 |
| - | |||
Residential mortgage | 225 |
| 440 |
| - | |||
|
|
|
|
|
| |||
$ | 855 |
| $ | 1,436 |
| $ | - | |
|
|
|
|
|
| |||
Loans with a specific |
|
|
|
|
| |||
valuation allowance |
|
|
|
|
| |||
Commercial mortgage | $ | 480 |
| $ | 480 |
| $ | 1 |
Commercial and industrial |
| 205 |
|
| 214 |
|
| 201 |
|
|
|
|
|
| |||
| $ | 685 |
| $ | 694 |
| $ | 202 |
|
|
|
|
|
| |||
Total impaired loans |
|
|
|
|
| |||
Commercial mortgage | $ | 698 |
| $ | 738 |
| $ | 1 |
Commercial and industrial | 617 |
| 952 |
| 201 | |||
Residential mortgage | 225 |
| 440 |
| - | |||
|
|
|
|
|
| |||
Total impaired loans | $ | 1,540 |
| $ | 2,130 |
| $ | 202 |
March 31, 2021 | |||||||||||||||||
Recorded Balance | Unpaid Principal Balance | Specific Allowance | |||||||||||||||
Impaired loans without a specific valuation allowance | |||||||||||||||||
Commercial mortgage | $ | 77 | $ | 86 | $ | — | |||||||||||
Commercial and industrial | 397 | 731 | — | ||||||||||||||
Residential mortgage | 124 | 246 | — | ||||||||||||||
$ | 598 | $ | 1,063 | $ | — | ||||||||||||
Impaired loans with a specific valuation allowance | |||||||||||||||||
Commercial mortgage | $ | 5,504 | $ | 5,504 | $ | 811 | |||||||||||
Commercial and industrial | 53 | 64 | 52 | ||||||||||||||
Residential mortgage | 54 | 54 | 0 | ||||||||||||||
$ | 5,611 | $ | 5,622 | $ | 863 | ||||||||||||
Total impaired loans | |||||||||||||||||
Commercial mortgage | $ | 5,581 | $ | 5,590 | $ | 811 | |||||||||||
Commercial and industrial | 450 | 795 | 52 | ||||||||||||||
Residential mortgage | 178 | 300 | 0 | ||||||||||||||
Total impaired loans | $ | 6,209 | $ | 6,685 | $ | 863 |
December 31, 2020 | |||||||||||||||||
Recorded Balance | Unpaid Principal Balance | Specific Allowance | |||||||||||||||
Impaired loans without a specific valuation allowance | |||||||||||||||||
Commercial mortgage | $ | 76 | $ | 86 | $ | — | |||||||||||
Commercial and industrial | 439 | 770 | — | ||||||||||||||
Residential mortgage | 269 | 491 | — | ||||||||||||||
$ | 784 | $ | 1,347 | $ | — | ||||||||||||
Impaired loans without a specific valuation allowance | |||||||||||||||||
Commercial mortgage | $ | 625 | $ | 625 | $ | 150 | |||||||||||
Commercial and industrial | 54 | 64 | 52 | ||||||||||||||
$ | 679 | $ | 689 | $ | 202 | ||||||||||||
Total impaired loans | |||||||||||||||||
Commercial mortgage | $ | 701 | $ | 711 | $ | 150 | |||||||||||
Commercial and industrial | 493 | 834 | 52 | ||||||||||||||
Residential mortgage | 269 | 491 | 0 | ||||||||||||||
Total impaired loans | $ | 1,463 | $ | 2,036 | $ | 202 |
| December 31, 2019 | |||||||
|
|
| Unpaid |
|
| |||
| Recorded |
| Principal |
| Specific | |||
| Balance |
| Balance |
| Allowance | |||
|
| |||||||
Loans without a specific |
|
|
|
|
| |||
valuation allowance |
|
|
|
|
| |||
Commercial mortgage | $ | 803 |
| $ | 1,256 |
| $ | - |
Commercial and industrial | 435 |
| 3,220 |
| - | |||
Residential mortgage | 347 |
| 614 |
| - | |||
|
|
|
|
|
| |||
$ | 1,585 |
| $ | 5,090 |
| $ | - | |
|
|
|
|
|
| |||
Loans with a specific |
|
|
|
|
| |||
valuation allowance |
|
|
|
|
| |||
Commercial and industrial | $ | 259 |
| $ | 266 |
| $ | 202 |
|
|
|
|
|
| |||
$ | 259 |
| $ | 266 |
| $ | 202 | |
|
|
|
|
|
| |||
Total impaired loans |
|
|
|
|
| |||
Commercial mortgage | $ | 803 |
| $ | 1,256 |
| $ | - |
Commercial and industrial | 694 |
| 3,486 |
| 202 | |||
Residential mortgage | 347 |
| 614 |
| - | |||
|
|
|
|
|
| |||
Total impaired loans | $ | 1,844 |
| $ | 5,356 |
| $ | 202 |
|
|
|
|
|
|
|
| Average |
|
| ||
|
| Investment in |
| Interest | ||
|
| Impaired |
| Income | ||
|
| Loans |
| Recognized | ||
|
| |||||
Three Months Ended June 30, 2020: |
|
|
|
| ||
Total impaired loans |
|
|
|
| ||
Commercial mortgage |
| $ | 745 |
| $ | 11 |
Commercial and industrial |
| 645 |
| 14 | ||
Residential mortgage |
| 265 |
| 1 | ||
|
|
|
|
| ||
Total impaired loans |
| $ | 1,655 |
| $ | 26 |
|
|
|
|
|
|
| Average |
|
| ||
|
| Investment in |
| Interest | ||
|
| Impaired |
| Income | ||
|
| Loans |
| Recognized | ||
|
| |||||
Six Months Ended June 30, 2020: |
|
|
|
| ||
Total impaired loans |
|
|
|
| ||
Commercial mortgage |
| $ | 765 |
| $ | 18 |
Commercial and industrial |
| 661 |
| 28 | ||
Residential mortgage |
| 292 |
| 6 | ||
|
|
|
|
| ||
Total impaired loans |
| $ | 1,718 |
| $ | 52 |
|
|
|
|
|
Average Investment in Impaired Loans | Interest Income Recognized | ||||||||||
Three Months Ended March 31, 2021: | |||||||||||
Total impaired loans | |||||||||||
Commercial mortgage | $ | 3,141 | $ | 7 | |||||||
Commercial and industrial | 471 | 4 | |||||||||
Residential mortgage | 180 | 1 | |||||||||
Total impaired loans | $ | 3,792 | $ | 12 |
|
| Average |
|
| ||
|
| Investment in |
| Interest | ||
|
| Impaired |
| Income | ||
|
| Loans |
| Recognized | ||
|
| |||||
Three Months Ended June 30, 2019: |
|
|
|
| ||
Total impaired loans |
|
|
|
| ||
Commercial mortgage |
| $ | 703 |
| $ | 7 |
Commercial and industrial |
| 889 |
| 30 | ||
Residential mortgage |
| 377 |
| 4 | ||
|
|
|
|
| ||
Total impaired loans |
| $ | 1,969 |
| $ | 41 |
|
|
|
|
|
|
| Average |
|
| ||
|
| Investment in |
| Interest | ||
|
| Impaired |
| Income | ||
|
| Loans |
| Recognized | ||
|
| |||||
Six Months Ended June 30, 2019: |
|
|
|
| ||
Total impaired loans |
|
|
|
| ||
Commercial mortgage |
| $ | 716 |
| $ | 22 |
Commercial and industrial |
| 985 |
| 40 | ||
Residential mortgage |
| 381 |
| 8 | ||
|
|
|
|
| ||
Total impaired loans |
| $ | 2,082 |
| $ | 70 |
|
|
|
|
|
Average Investment in Impaired Loans | Interest Income Recognized | ||||||||||
Three Months Ended March 31, 2020: | |||||||||||
Total impaired loans | |||||||||||
Commercial mortgage | $ | 797 | $ | 7 | |||||||
Commercial and industrial | 684 | 14 | |||||||||
Residential mortgage | 326 | 5 | |||||||||
Total impaired loans | $ | 1,807 | $ | 26 |
|
| June 30, |
| December 31, | ||
|
| 2020 |
| 2019 | ||
|
| |||||
Commercial mortgage |
| $ | 218 |
| $ | 342 |
Commercial and industrial |
| 468 |
| 494 | ||
Residential mortgage |
| 225 |
| 315 | ||
Leases |
| 103 |
| 74 | ||
|
|
|
|
| ||
| $ | 1,014 |
| $ | 1,225 |
2020:
March 31, 2021 | December 31, 2020 | ||||||||||
Commercial mortgage | $ | 77 | $ | 76 | |||||||
Commercial and industrial | 450 | 493 | |||||||||
Construction | 4,900 | 0 | |||||||||
Residential mortgage | 124 | 214 | |||||||||
Leases | 53 | 20 | |||||||||
$ | 5,604 | $ | 803 |
|
| June 30, |
|
| December 31, |
| ||
|
| 2020 |
|
| 2019 |
| ||
|
|
|
| |||||
Total minimum lease payments to be received |
| $ | 127,851 |
|
| $ | 120,570 |
|
Initial direct costs |
| 4,425 |
|
| 5,720 |
| ||
| 132,276 |
|
| 126,290 |
| |||
Less: Unearned income |
| (17,924 | ) |
| (16,698 | ) | ||
|
|
|
|
|
|
| ||
Net investment in direct finance leases |
| $ | 114,352 |
|
| $ | 109,592 |
|
|
|
|
|
|
|
|
The amount of leases
March 31, 2021 | December 31, 2020 | ||||||||||
Total minimum lease payments to be received | $ | 129,865 | $ | 129,114 | |||||||
Initial direct costs | 6,639 | 6,353 | |||||||||
136,504 | 135,467 | ||||||||||
Less: Unearned income | (18,779) | (18,296) | |||||||||
Net investment in direct finance leases | $ | 117,725 | $ | 117,171 |
| ||
2020 | $ | 25,648 |
2021 | 43,071 | |
2022 | 29,713 | |
2023 | 18,018 | |
2024 | 9,201 | |
Thereafter | 2,200 | |
|
| |
$ | 127,851 | |
|
|
2021 | $ | 38,107 | |||
2022 | 39,561 | ||||
2023 | 27,108 | ||||
2024 | 16,659 | ||||
2025 | 7,405 | ||||
Thereafter | 1,025 | ||||
$ | 129,865 |
|
|
| Fair Value Measurements Using | ||||||||
|
|
| Quoted Prices |
|
|
|
| ||||
|
|
| in Active |
| Significant |
|
| ||||
|
|
| Markets for |
| Other |
| Significant | ||||
|
|
| Identical |
| Observable |
| Unobservable | ||||
| Fair |
| Assets |
| Inputs |
| Inputs | ||||
| Value |
| (Level 1) |
| (Level 2) |
| (Level 3) | ||||
|
|
| |||||||||
June 30, 2020 |
|
|
|
|
|
|
| ||||
Available-for-sale securities |
|
|
|
|
|
|
| ||||
SBA Pools | $ | 22,771 |
| $ | - |
| $ | 22,771 |
| $ | - |
Federal agencies | 7,519 |
| - |
| 7,519 |
| - | ||||
State and municipal obligations | 62,197 |
| - |
| 62,197 |
| - | ||||
Mortgage-backed securities - |
|
|
|
|
|
|
| ||||
GSE residential | 128,704 |
| - |
| 128,704 |
| - | ||||
Equity securities | 13 |
| 13 |
| - |
| - | ||||
|
|
|
|
|
|
|
| ||||
$ | 221,204 |
| $ | 13 |
| $ | 221,191 |
| $ | - | |
|
|
|
|
|
|
|
|
Fair Value Measurements Using | |||||||||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
March 31, 2021 | |||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||
SBA Pools | $ | 15,528 | $ | 0 | $ | 15,528 | $ | 0 | |||||||||||||||
Federal agencies | 7,533 | 0 | 7,533 | 0 | |||||||||||||||||||
State and municipal obligations | 100,336 | 0 | 100,336 | 0 | |||||||||||||||||||
Mortgage-backed securities - GSE residential | 134,749 | 0 | 134,749 | 0 | |||||||||||||||||||
Equity securities | 13 | 13 | 0 | 0 | |||||||||||||||||||
$ | 258,159 | $ | 13 | $ | 258,146 | $ | 0 |
|
|
| Fair Value Measurements Using | ||||||||
|
|
| Quoted Prices |
|
|
|
| ||||
|
|
| in Active |
| Significant |
|
| ||||
|
|
| Markets for |
| Other |
| Significant | ||||
|
|
| Identical |
| Observable |
| Unobservable | ||||
| Fair |
| Assets |
| Inputs |
| Inputs | ||||
| Value |
| (Level 1) |
| (Level 2) |
| (Level 3) | ||||
|
|
| |||||||||
December 31, 2019 |
|
|
|
|
|
|
| ||||
Available-for-sale securities |
|
|
|
|
|
|
| ||||
U.S. Treasury securities | $ | 2,991 |
| $ | - |
| $ | 2,991 |
| $ | - |
SBA Pools | 14,383 |
| - |
| 14,383 |
| - | ||||
Federal agencies | 21,646 |
| - |
| 21,646 |
| - | ||||
State and municipal obligations | 45,840 |
| - |
| 45,840 |
| - | ||||
Mortgage-backed securities - |
|
|
|
|
|
|
| ||||
GSE residential | 116,911 |
| - |
| 116,911 |
| - | ||||
Equity securities | 13 |
| 13 |
| - |
| - | ||||
|
|
|
|
|
|
|
| ||||
$ | 201,784 |
| $ | 13 |
| $ | 201,771 |
| $ | - |
Fair Value Measurements Using | |||||||||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||
SBA Pools | $ | 16,300 | $ | 0 | $ | 16,300 | $ | 0 | |||||||||||||||
Federal agencies | 5,757 | 0 | 5,757 | 0 | |||||||||||||||||||
State and municipal obligations | 96,285 | 0 | 96,285 | 0 | |||||||||||||||||||
Mortgage-backed securities - GSE residential | 126,150 | 0 | 126,150 | 0 | |||||||||||||||||||
Equity securities | 13 | 13 | 0 | 0 | |||||||||||||||||||
$ | 244,505 | $ | 13 | $ | 244,492 | $ | 0 |
March 31, 2021.
|
|
| Fair Value Measurements Using | ||||||||
|
|
| Quoted Prices |
|
|
|
| ||||
|
|
| in Active |
| Significant |
|
| ||||
|
|
| Markets for |
| Other |
| Significant | ||||
|
|
| Identical |
| Observable |
| Unobservable | ||||
| Fair |
| Assets |
| Inputs |
| Inputs | ||||
| Value |
| (Level 1) |
| (Level 2) |
| (Level 3) | ||||
|
|
| |||||||||
June 30, 2020 |
|
|
|
|
|
|
| ||||
Impaired loans, collateral dependent | $ | 483 |
| $ | - |
| $ | - |
| $ | 483 |
Mortgage-servicing rights | 1,405 |
| - |
| - |
| 1,405 | ||||
|
|
|
|
|
|
|
| ||||
December 31, 2019 |
|
|
|
|
|
|
| ||||
Impaired loans, collateral dependent | $ | 57 |
| $ | - |
| $ | - |
| $ | 57 |
Mortgage-servicing rights | 1,033 |
| - |
| - |
| 1,033 |
Fair Value Measurements Using | |||||||||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
March 31, 2021 | |||||||||||||||||||||||
Impaired loans, collateral dependent | $ | 4,748 | $ | 0 | $ | 0 | $ | 4,748 | |||||||||||||||
Mortgage-servicing rights | 1,659 | 0 | 0 | 1,659 | |||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
Impaired loans, collateral dependent | $ | 532 | $ | 0 | $ | 0 | $ | 532 | |||||||||||||||
Mortgage-servicing rights | 1,712 | 0 | 0 | 1,712 |
Unobservable (Level 3) Inputs Fair Value at June 30, Valuation Unobservable 2020 Technique Inputs Range Collateral-dependent $ 483 Appraisal Marketability 0% - 11% impaired loans discount Mortgage-servicing rights $ 1,405 Discounted Discount rate 10% cash flow Fair Value at December 31, Valuation Unobservable 2019 Technique Inputs Range Collateral-dependent $ 57 Appraisal Marketability 0% - 75% impaired loans discount Mortgage-servicing rights $ 1,033 Discounted Discount rate 10% cash flow Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) June 30, 2020 Financial assets Cash and cash equivalents $ 110,606 $ 110,606 $ - $ - Available-for-sale securities 221,204 13 221,191 - Held-to-maturity securities 13,320 - 13,664 - Loans and leases receivable, net 752,923 - - 762,060 Federal Reserve and FHLB stock 9,080 - 9,080 - Interest receivable 4,721 - 4,721 - Financial liabilities Deposits 739,131 - 742,215 - FHLB advances 180,000 - 187,403 - Interest payable 348 - 348 - Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) December 31, 2019 Financial assets Cash and cash equivalents $ 40,597 $ 40,597 $ - $ - Available-for-sale securities 201,784 13 201,771 - Held-to-maturity securities 15,917 - 16,156 - Loans and leases receivable, net 687,258 - - 687,789 Federal Reserve and FHLB stock 7,600 - 7,600 - Interest receivable 3,052 - 3,052 - Financial liabilities Deposits 617,219 - 619,635 - FHLB advances 154,000 - 155,304 - Interest payable 297 - 297 - Three Months Ended Six Months Ended June 30, 2020 June 30, 2020 Net income $ 2,506 $ 4,958 Shares outstanding for Basic EPS: Average shares outstanding 13,526,625 13,526,625 Less: average unearned ESOP Shares 1,045,892 1,052,656 Shares outstanding for Basic EPS 12,480,733 12,473,969 Additional Dilutive Shares - - Shares outstanding for Diluted EPS 12,480,733 12,473,969 Basic Earnings Per Share $ 0.20 $ 0.40 Diluted Earnings Per Share $ 0.20 $ 0.40 June 30, 2020 Earned ESOP shares 49,598 Unearned ESOP shares 1,032,532 Total ESOP shares 1,082,130 Quoted per share price $ 11.24 Fair value of earned shares $ 557 Fair value of unearned shares $ 11,606June 30, 2020March 31, 2021 and December 31, 2019:2020:Fair Value at March 31, 2021 Valuation
TechniqueUnobservable
InputsRange Collateral-dependent impaired loans $ 4,748 Appraisal Marketability discount 0 - 16% Mortgage-servicing rights $ 1,659 Discounted cash flow Discount rate 10% Fair Value at December 31, 2020 Valuation
TechniqueUnobservable
InputsRange Collateral-dependent impaired loans $ 532 Appraisal Marketability discount 0 - 12% Mortgage-servicing rights $ 1,712 Discounted cash flow Discount rate 10% June 30, 2020March 31, 2021 and December 31, 2019.2020:Fair Value Measurements Using Carrying
ValueQuoted Prices
in Active
Markets for
Identical
Assets
(Level 1)Significant
Other
Observable
Inputs
(Level 2)Significant
Unobservable
Inputs
(Level 3)March 31, 2021 Financial assets Cash and cash equivalents $ 65,523 $ 65,523 $ 0 $ 0 Available-for-sale securities 258,159 13 258,146 0 Held-to-maturity securities 10,211 0 10,445 0 Loans and leases receivable, net 763,731 0 0 781,646 Federal Reserve and FHLB stock 9,050 0 9,050 0 Interest receivable 4,204 0 4,204 0 Financial liabilities Deposits 757,074 0 759,129 0 FHLB advances 170,000 0 177,192 0 Interest payable 208 0 208 0 Fair Value Measurements Using Carrying
ValueQuoted Prices
in Active
Markets for
Identical
Assets
(Level 1)Significant
Other
Observable
Inputs
(Level 2)Significant
Unobservable
Inputs
(Level 3)December 31, 2020 Financial assets Cash and cash equivalents $ 48,768 $ 48,768 $ 0 $ 0 Available-for-sale securities 244,505 13 244,492 0 Held-to-maturity securities 12,225 0 12,520 0 Loans and leases receivable, net 736,400 0 0 751,151 Federal Reserve and FHLB stock 9,050 0 9,050 0 Interest receivable 4,704 0 4,704 0 Financial liabilities Deposits 693,045 0 695,216 0 FHLB advances 170,000 0 178,015 0 Interest payable 222 0 222 0 Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 Net income $ 2,562 $ 2,452 Shares outstanding for Basic EPS: Average shares outstanding 13,124,015 13,526,625 Less: average restricted stock award shares not vested 431,501 0 Less: average unearned ESOP Shares 1,005,311 1,059,419 Shares outstanding for Basic EPS 11,687,203 12,467,206 Additional Dilutive Shares 176,705 0 Shares outstanding for Diluted EPS 11,863,908 12,467,206 Basic Earnings Per Share $ 0.22 $ 0.20 Diluted Earnings Per Share $ 0.22 $ 0.20 corporate reorganization and related stock offering, the Company established an Employee Stock Ownership Plan, (ESOP)or ESOP, covering substantially all employees. The ESOP acquired 1,082,130 shares of Company common stock at an average price of $13.59 per share on the open market with funds provided by a loan from the Company. Dividends on unallocated shares used to repay the loan for the Company are recorded as a reduction of the loan or accrued interest, as applicable. Dividends on allocated shares paid to participants are reported as compensation expense. Unearned ESOP shares which have not yet been allocated to ESOP participants are excluded from the computation of average shares outstanding for earnings per share calculation. Accordingly, $14,706,000$13,479,847 and $13,664,373 of common stock acquired by the ESOP was shown as a reduction of stockholders’ equity.equity at March 31, 2021 and December 31, 2020, respectively. Shares are released to participants proportionately as the loan is repaid.and six months ended March 31, 2021 and 2020 was $183,000 and $187,000, respectively.March 31, 2021 March 31, 2020 Earned ESOP shares 90,196 22,545 Unearned ESOP shares 991,934 1,059,585 Total ESOP shares 1,082,130 1,082,130 Quoted per share price $ 13.56 $ 10.22 Fair value of earned shares $ 1,223 $ 230 Fair value of unearned shares $ 13,451 $ 10,829 March 31, 2021 Number of Shares Weighted-Average Exercise Price Balance at beginning of year 1,095,657 $ 10.53 Granted 0 0 Exercised 0 0 Forfeited/expired 0 0 Balance at end of year 1,095,657 10.53 40,580 $ 10.53 Shares Weighted Average Grant Date Fair Value Non-vested, beginning of year 1,055,077 $ 2.91 Vested 0 0 Granted 0 0 Forfeited 0 0 Non-vested, March 31 1,055,077 $ 2.91 $143,000$205,000 and $329,000, respectively.the related tax benefit recognized was $23,000. As of March 31, 2021, unrecognized compensation expense related to the stock option awards was $2.7 million.On July 8, 2020,announced that its Board of Directors authorized apurchased 167,193 shares under the existing stock repurchase program, leaving 249,392 shares available for up to 676,331 shares, or approximately 5% of its currently outstanding shares.future repurchase.June 30, 2020,March 31, 2021, and the consolidated results of operations for the three and six month periodsmonths ended June 30, 2020,March 31, 2021, compared to the same periodsperiod in 20192020 is intended to assist in understanding the financial condition and results of operations of the Company. The information contained in this section should be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto appearing in Part I, Item 1, of this Form 10-Q.·····Company’Company’s credit quality and business operations, as well as its impact on general economic and financial market conditions and other uncertainties resulting from the COVID-19 pandemic, such as the extent and duration of the impact on public health, the U.S. and global economies, and consumer and corporate clients, including economic activity, employment levels and market liquidity;····both residential, commercial, and commercialmultifamily real estate market conditions;·risks associated with the relatively unseasoned nature of a significant portion of our loan portfolio; ·•demand for loans and deposits in our market area;·
·
·
·the deductibility of our contribution to the charitable foundation for tax purposes;
·
·
·changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements, including as a result of Basel III;
·
·
·on the third-party vendors who perform several of our critical processing functions;
·
·
·
·
·
·our ability to retain key employees;
·our compensation expense associated with equity allocated or awarded to our employees;
·changes inBoard, including additional guidance and interpretation on accounting issues and details of the financial condition, resultsimplementation of operations or future prospectsnew accounting methods; including as a result of issuers of securities that we own;
·other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services including the Coronavirus Aid, Relief, and Economic Security Act of 2020 ("CARES Act") ; and
·the Consolidated Appropriations Act, 2021 ("CAA 2021");
We undertake no obligation to publicly update or revise any forward-looking statements included in this report or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking statements discussed in this report might not occur and you should not put undue reliance on any forward-looking statements.
Our principal business consists of attracting deposits from the general public, as well as brokered deposits, and investing those funds primarily in loans secured by commercial and multi-family real estate, first mortgages on owner-occupied, one- to four-family residences, a variety of consumer loans, direct financing leases and commercial and industrial loans. We also obtain funds by utilizing Federal Home Loan Bank (“FHLB”) advances. Funds not invested in loans generally are invested in investment securities, including mortgage-backed and mortgage-related securities and government sponsored agency and municipal bonds.
March 31, 2021.
March 31, 2020.
Allowance for Loan and Lease Losses. We maintain an allowance for loan and lease losses to cover probable incurred credit losses at the balance sheet date. Loan and lease losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in our judgment, should be charged-off. A provision for loan and lease losses is charged to operations based on our periodic evaluation of the necessary allowance balance.
Foreclosed Assets. Foreclosed assets are carried at the lower of cost or fair value less estimated selling costs. Management estimates the fair value of the properties based on current appraisal information. Fair value estimates are particularly susceptible to significant changes in the economic environment, market conditions and real estate market. A worsening or protracted economic decline would increase the likelihood of a decline in property values and could create the need to write down the properties through current operations.
We evaluate all securities on a quarterly basis, and more frequently when economic conditions warrant additional evaluations, for determining if any other-than-temporary-impairments (“OTTI”) exist pursuant to guidelines established in ASC 320. In evaluating the possible impairment of securities, consideration is given to the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and our ability and intent to retain our investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. In analyzing an issuer’s financial condition, we may consider whether the securities are issued by the federal government or its agencies or government sponsored agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition.
In response
serve during the ongoing COVID-19 pandemic.
deadline and is assisting small businesses with other borrowing options as they become available, including SBA and other government sponsored lending programs, as appropriate.
forgiveness. As of June 30, 2020, we have processed 465March 31, 2021, the Company has received SBA forgiveness for 413 PPP loans totaling $64.3 million. There were $72,000$47.0 million out of the $64.9 million in PPP loans approved awaiting funding asfunded during the first PPP program. During the first quarter of June 30,2021, the Company began accepting and processing loan applications under the second PPP program enacted in December 2020. ManyAs of March 31, 2021, the PPP applications have been from our existing clients but we are also serving those who have not had a banking relationship with us in the past. In addition to the 1% interest earned on these loans, the SBA pays us fees for processingBank has funded 329 PPP loans intotaling $35.2 million under the following amounts: (i) five (5) percentsecond PPP program. As of March 31, 2021, there was a total of 408 PPP loans outstanding totaling $54.7 million. We expect to continue accepting and processing applications for the second round of PPP loans through its expiration date of not more than $350,000; (ii) three (3) percent for loans of more than $350,000 and less than $2,000,000; and one (1) percent for loans of at least $2,000,000. We may not collect any fees from the loan applicants.
May 31, 2021.
leases currently deferred at March 31, 2021, six loans, representing $2.3 million in loans and leases outstanding, were new deferrals and 27 loans, representing $22.3 million in loans and leases outstanding, were repeat deferrals. The following table summarizes information relating to forbearance requests grantedloan deferments at June 30, 2020 and March 31, 2021 and December 31, 2020:
|
| June 30, 2020 |
| March 31, 2020 | ||||||
($ in thousands) |
| Number of Loans |
| Balance |
| Number of Loans |
| Balance | ||
Commercial mortgage |
| 70 |
| $ | 98,010 |
| 21 |
| $ | 27,050 |
Commercial and industrial |
| 27 |
| 12,692 |
| 10 |
| 1,730 | ||
Construction and development |
| 3 |
| 10,098 |
| — |
| — | ||
Multi-Family |
| 13 |
| 21,197 |
| 5 |
| 4,465 | ||
Residential mortgage |
| 88 |
| 11,198 |
| 8 |
| 1,379 | ||
Home equity |
| 7 |
| 215 |
| — |
| — | ||
Direct financing leases |
| 507 |
| 21,080 |
| 176 |
| 8,058 | ||
Consumer |
| 37 |
| 597 |
| — |
| — | ||
Total Loans |
| 752 |
| $ | 175,087 |
| 220 |
| $ | 42,682 |
|
|
|
|
|
|
|
|
|
|
|
March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
($ in thousands) | Number of Loans | Balance | Number of Loans | Balance | |||||||||||||||||||
Commercial mortgage | 8 | 23,372 | 18 | 44,352 | |||||||||||||||||||
Commercial and industrial | — | — | 1 | 770 | |||||||||||||||||||
Multi-Family | — | — | 4 | 8,868 | |||||||||||||||||||
Residential mortgage | 5 | 450 | 3 | 163 | |||||||||||||||||||
Direct financing leases | 19 | 756 | 20 | 494 | |||||||||||||||||||
Consumer | 1 | 4 | 2 | 18 | |||||||||||||||||||
Total Loans | 33 | 24,582 | 48 | 54,665 |
March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||
($ in thousands) | Number of Loans | Balance | Percent of total loans in category | Number of Loans | Balance | Percent of total loans in category | |||||||||||||||||||||||
Restaurants | — | $ | — | — | % | 1 | $ | 375 | 6.78 | % | |||||||||||||||||||
Hotels | 5 | 16,350 | 23.15 | % | 12 | 37,056 | 56.17 | % | |||||||||||||||||||||
Total Loans | 5 | $ | 16,350 | 21.74 | % | 13 | $ | 37,431 | 52.35 | % |
Many of our
In addition, certain late fees are being waived for those customers experiencing a hardship as a result of the COVID 19 pandemic.
2020
2020.
Nonperforming loans and leases, consisting of nonaccrual loans and leases and accruing loans and leases more than 90 days past due, totaled $4.3$8.1 million or 0.57%1.05% of total loans and leases at June 30, 2020,March 31, 2021, compared to $4.3$4.8 million or 0.61% of total loans at March 31, 2020, and $3.8 million or 0.55%0.64% of total loans and leases at December 31, 2019.2020. The increase in nonperforming loans and leases was the result of a $4.9 million non-accruing commercial real estate loan more than 90 days past due that is currently subject to litigation. At the time of origination, this loan had a loan to value ratio of 73%. Accruing loans and leases past due more than 90 days at June 30, 2020,March 31, 2021, totaled $3.3$2.5 million, compared to $3.1 million at March 31, 2020, and $2.6$4.0 million at December 31, 2019.
2020.
2020.
2020.
Stockholders’ Equity. Stockholders’ equity totaled $196.1$189.5 million at June 30, 2020, an increaseMarch 31, 2021, a decrease of $8.3$3.2 million, or 4.4%1.7%, from December 31, 2019.2020. The increasedecrease in stockholders’stockholders' equity primarilyfrom year-end 2020 was the result of a reduction in accumulated comprehensive income of $3.7 million, the repurchase of $1.9 million of Company common stock and the payment of $847,000 in dividends to Company stockholders during the current quarter, partially offset by net income of $5.0$2.6 million in the first halfquarter, an increase of 2020$508,000 due to the Company's equity incentive plan, and a $3.7$183,000 increase due to ESOP shares earned. The Company repurchased 142,764 shares of Company common stock at an average price of $13.58 per share for a total of $1.9 million improvement in accumulated other comprehensive income, partially offset by $623,000 in dividends paid to shareholders.during the first quarter of 2021. The Company’s equity to asset ratio was 17.2%16.6% at June 30, 2020.March 31, 2021. At June 30, 2020,March 31, 2021, the Bank’s Tier 1 capital to total assets ratio was 13.4%14.2% and the Bank’s capital was well in excess of all regulatory requirements.
2020.
Interest income on investment securities, including FHLB stock, increased $222,000, or 23.2%, to $1.2 million during the quarter ended June 30, 2020, from $957,000 during the comparable quarter in 2019. The increase in interest income on investment securities from the comparable period in 2019 was due to higher average balances, partially offset by a lower weighted average yield. The average balance of investment securities, including FHLB stock, was $256.6 million for the quarter ended June 30, 2020,March 31, 2021, compared to $157.8 million for the quarter ended June 30, 2019. The average yield on investment securities, including FHLB stock, was 1.84% for the second quarter of 2020, compared to 2.45% for the second quarter of 2019. Interest income earned on cash and cash equivalents decreased to $11,000 in the second quarter of 2020 compared to $278,000 in the comparable quarter of 2019. This was due to the significantly lower yield earned on funds at the Federal Reserve after the rate reductions experienced in the second half of 2019 and in March 2020.
Interest Expense. Interest expense decreased $441,000, or 15.1%, to $2.5 million for the quarter ended June 30, 2020, from $2.9 million for the quarter ended June 30, 2019. Interest expense on deposits decreased $403,000, or 19.1%, to $1.7 million for the quarter ended June 30, 2020, from $2.1 million for the comparable quarter in 2019. This decrease in interest expense was attributable to the lower weighted average rate paid on interest-bearing deposits, partially offset by higher average deposit balances. The weighted average rate paid on interest-bearing deposits was 1.13% for the quarter ended June 30, 2020, compared to 1.40% for the quarter ended June 30, 2019. Average balances of interest-bearing deposits increased slightly to $602.3 million in the quarter ended June 30, 2020, compared to $600.1 millionno impact in the comparable quarter in 2019. Interest expense on FHLB borrowings decreased $38,000, or 4.7%, to $770,000 in the second quarter of 2020 compared to the same quarter in 2019. The average balance of FHLB borrowings totaled $181.8 million during the quarter ended June 30, 2020, compared to $147.4 million for the quarter ended June 30, 2019. The weighted average rate paid on FHLB borrowings was 1.69% for the quarter ended June 30, 2020, a 51 basis point decline from 2.20% for the comparable quarter in 2019.
Net Interest Income. Net interest income before the provision for loan and lease losses increased $541,000, or 7.2%, to $8.0 million in the second quarter of 2020, compared to $7.5 million for the second quarter of 2019. This increase was primarily due to an increase in average interest-earning assets during the second quarter of 2020 compared to the comparable period in 2019. Our net interest margin was 3.03% for three months ended June 30, 2020, compared to 3.27% for the three months ended June 30, 2019. The decrease in net interest margin was primarily due to yields earned on interest-earning assets declining at a faster rate than interest rates paid on interest-bearing liabilities. The market’s response to lowering deposit pricing to reflect the targeted federal funds rate decrease over the past year typically lags declines in the yield on interest earning assets. The average yield onas no PPP loans was 3.22% during the three months ended June 30, 2020, including the recognition of the net deferred fees, resulting in a negative impact on net interest margin of 12 basis points for the three months ended June 30, 2020.
were originated at that time.
|
|
| Three Months Ended June 30, | |||||||||||||||||||||
|
|
| 2020 |
| 2019 | |||||||||||||||||||
|
|
|
| Average Balance Outstanding |
|
|
| Interest Earned/ Paid |
| Yield/ Rate |
|
|
| Average Balance Outstanding |
|
|
|
| Interest Earned/ Paid |
| Yield/ Rate |
|
| |
|
|
|
| (Dollars in thousands) |
| |||||||||||||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Loans and leases receivable |
|
| $ | 747,865 |
|
| $ | 9,308 |
| 4.98 | % |
| $ | 687,023 |
|
| $ |
| 9,163 |
| 5.33 | % |
| |
Securities |
|
|
| 247,594 |
|
|
| 1,120 |
| 1.81 | % |
|
| 150,640 |
|
|
|
| 867 |
| 2.30 | % |
| |
FHLB stock |
|
|
| 9,035 |
|
|
| 58 |
| 2.57 | % |
|
| 7,143 |
|
|
|
| 91 |
| 5.10 | % |
| |
Cash and cash equivalents and other |
|
|
| 54,806 |
|
|
| 11 |
| 0.08 | % |
|
| 70,744 |
|
|
|
| 278 |
| 1.57 | % |
| |
Total interest-earning assets |
|
|
| 1,059,300 |
|
|
| 10,497 |
| 3.96 | % |
|
| 915,550 |
|
|
|
| 10,399 |
| 4.54 | % |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Savings and money market accounts |
|
|
| 183,415 |
|
|
| 253 |
| 0.55 | % |
|
| 180,514 |
|
|
|
| 346 |
| 0.77 | % |
| |
Interest-bearing checking accounts |
|
|
| 115,091 |
|
|
| 66 |
| 0.23 | % |
|
| 102,280 |
|
|
|
| 98 |
| 0.38 | % |
| |
Certificate accounts |
|
|
| 303,805 |
|
|
| 1,385 |
| 1.82 | % |
|
| 317,299 |
|
|
|
| 1,663 |
| 2.10 | % |
| |
Borrowings |
|
|
| 181,824 |
|
|
| 770 |
| 1.69 | % |
|
| 147,375 |
|
|
|
| 809 |
| 2.20 | % |
| |
Total interest-bearing liabilities |
|
|
| 784,135 |
|
|
| 2,474 |
| 1.26 | % |
|
| 747,468 |
|
|
|
| 2,916 |
| 1.56 | % |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net interest income |
|
|
|
|
|
| $ | 8,023 |
|
|
|
|
|
|
|
| $ |
| 7,483 |
|
|
|
| |
Net earning assets |
|
| $ | 275,165 |
|
|
|
|
|
|
|
| $ | 168,082 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net interest rate spread(1) |
|
|
|
|
|
|
|
|
| 2.70 | % |
|
|
|
|
|
|
|
|
| 2.98 | % |
| |
Net interest margin(2) |
|
|
|
|
|
|
|
|
| 3.03 | % |
|
|
|
|
|
|
|
|
| 3.27 | % |
| |
Average interest-earning assets to average interest-bearing liabilities |
|
|
| 135.09 | % |
|
|
|
|
|
|
|
| 122.49 | % |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Average Balance Outstanding | Interest Earned/ Paid | Yield/ Rate | Average Balance Outstanding | Interest Earned/ Paid | Yield/ Rate | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||
Loans and leases receivable | $ | 717,980 | $ | 9,628 | 5.36 | % | $ | 686,180 | $ | 9,064 | 5.28 | % | |||||||||||||||||||||||
Securities | 260,763 | 940 | 1.44 | % | 224,300 | 1,182 | 2.11 | % | |||||||||||||||||||||||||||
FHLB stock | 9,050 | 69 | 3.05 | % | 7,922 | 81 | 4.09 | % | |||||||||||||||||||||||||||
Cash and cash equivalents and other | 31,595 | 7 | 0.09 | % | 32,277 | 125 | 1.55 | % | |||||||||||||||||||||||||||
Total interest-earning assets | 1,019,388 | 10,644 | 4.18 | % | 950,679 | 10,452 | 4.40 | % | |||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Savings and money market accounts | 223,560 | 278 | 0.50 | % | 163,948 | 292 | 0.71 | % | |||||||||||||||||||||||||||
Interest-bearing checking accounts | 142,457 | 81 | 0.23 | % | 104,154 | 82 | 0.31 | % | |||||||||||||||||||||||||||
Certificate accounts | 248,360 | 828 | 1.33 | % | 278,434 | 1,451 | 2.08 | % | |||||||||||||||||||||||||||
Borrowings | 170,000 | 694 | 1.63 | % | 164,066 | 739 | 1.80 | % | |||||||||||||||||||||||||||
Total interest-bearing liabilities | 784,377 | 1,881 | 0.96 | % | 710,602 | 2,564 | 1.44 | % | |||||||||||||||||||||||||||
Net interest income | $ | 8,763 | $ | 7,888 | |||||||||||||||||||||||||||||||
Net earning assets | $ | 235,011 | $ | 240,077 | |||||||||||||||||||||||||||||||
Net interest rate spread(1) | 3.22 | % | 2.96 | % | |||||||||||||||||||||||||||||||
Net interest margin(2) | 3.44 | % | 3.32 | % | |||||||||||||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 129.96 | % | 133.79 | % |
Non-Interest Income. Non-interest income increased $1.2 million$814,000 or 131.4%85.4%, to $2.1$1.8 million for the quarter ended June 30, 2020,March 31, 2021, compared to $900,000$953,000 for the comparable quarter in 20192020. The increase in noninterest income resulted primarily from the increase in the gain on sale of loans and leases, which increased $907,000,$737,000, or 734.1%322.8%, to $1.0 million$965,000 during the secondfirst quarter of 2020,2021, compared to $124,000$228,000 during the first quarter of 2020 as a result of increasedcontinued strong mortgage banking activity during the current quarter due to lowercontinuing low interest rates. There was no gain on the sale of securities recorded in the first quarter of 2021 while the Company recognized a net gain on the sale of securities of $69,000 in the first quarter of 2020. Card fee income increased $63,000, or 35.0%, to $243,000 in the first quarter of 2021 from $180,000 in the first quarter of 2020 due to increased debit card usage. Loan and lease servicing income increased $202,000, or 20.5%,decreased $40,000, to $301,000a loss of $105,000 for the secondfirst quarter of 20202021 compared to $99,000a loss of $66,000 for the comparable quarter in 2019. In the second quarter2020, due to a larger impairment of 2020, the Company recorded a recovery to the value of its mortgage servicing rights in the first quarter of $296,000, while no2021 compared to the first quarter of 2020. An impairment recovery or chargewrite down of $158,000 was recorded in the secondfirst quarter of 2019. Other loan fees increased $156,000, or 176.8%, to $245,000 due to increased letter of credit fees of $58,000 and loan interest rate modification fees of $76,000. Service fees on deposit accounts decreased $146,000, or 58.1%, to $106,000 for the quarter ended June 20, 2020, compared to $252,000 for the quarter ended June 30, 2019 as a result of the waiving of overdraft fees.
Non-Interest Expense. Non-interest expense decreased $2.0 million, or 25.7%, to $5.6 million for the three months ended June 30, 2020, from $7.6 million for the same period in 2019. Salaries and employee benefits decreased $2.0 million, or 38.5%, to $3.3 million for the quarter ended June 30, 2020 from $5.3 million for the quarter ended June 30, 2019. The $2.0 million decrease from the second quarter of 2019 was primarily attributable to the $1.7 million pre-tax expense related to the adoption of a nonqualified deferred compensation plan during the second quarter of 2019. Excluding this expense, salaries and employee benefits decreased $369,000, or 10.3%, for the three months ended June 30, 2020, compared to the three months ended June 30, 2019. Data processing expenses increased $48,000, or 11.3%, in the second quarter of 2020 compared to the second quarter of 2019, due to normal price increases associated with information technology services and additional digital services and products offered by the Company. Deposit insurance expense decreased $98,000, or 62.0%, to $60,000, in the second quarter of 2020 compared to the second quarter of 2019. The decrease from the second quarter of 2019 was due to the Bank’s higher capital ratios resulting from the Company’s injection of capital into the Bank in connection with our reorganization to a stock holding company and related stock offering. Legal and professional fees increased $118,000, or 56.4%, to $327,000 for the quarter ended June 30, 2020 from $209,000 for the comparable quarter in 2019. The increase in legal and professional fees was due to the establishment of an out-of-state subsidiary of First Bank for investment management purposes in the second quarter of 2020.
Income Tax Expense. Income tax expense increased $674,000 during the three months ended June 30, 2020, compared to the same period in 2019, primarily due to a $2.8 million increase in pre-tax income. The effective tax rate for the second quarter of 2020 was 20.2%2021 compared to a 14.3% benefit for the same quarter a year ago.
Comparisonwrite down of Results of Operations for the Six Months Ended June 30, 2020 and 2019.
General.Net income for the six months ended June 30, 2020 totaled $5.0 million, a $3.3 million or 190.4% increase from net income of $1.7 million for the comparable period in 2019. The $5.0 million in earnings equaled $0.40 diluted earnings per share for the first half of 2020. There is no comparison of earnings per share to the first half of 2019, as the Company’s reorganization from the mutual to stock form of ownership and related stock offering was not completed until July 1, 2019.
Interest Income. Interest income increased $795,000, or 3.9%, to $20.9 million during the six months ended June 30, 2020, compared to $20.2 million for the comparable period in 2019. Interest income on loans and leases increased $443,000, or 2.5%, to $18.4 million for the first six months of 2020, compared to $17.9 million for the comparable period in 2019, due to higher average loan and lease balances and a slightly higher average yield. The average outstanding loan and lease balance was $692.1 million for the first half of the year of 2020, compared to $677.7 million for the first half of 2019. The average yield on loans and leases was 5.31% for the first six months of 2020, compared to 5.29% for the first six months of 2019. The yield on the loan and lease portfolio was impacted by the PPP loan activity which occurred during the second quarter of 2020 as PPP loans are originated at an interest rate of 1%, although the effective yield is slightly higher as a result of the origination fees paid to us by the SBA. The average yield on PPP loans was 3.22%$114,000 in the first half of 2020, including the recognition of the net deferred fees, reducing average yield on loans and leases by eight basis points during the six months ended June 30, 2020.
Interest income on investment securities, including FHLB stock, increased $543,000, or 28.6%, to $2.4 million during the six months ended June 30, 2020, compared to $1.9 million during the comparable period in 2019. The increase in the interest income on investment securities was due to higher average balances, partially offset by a lower weighted average yield. The average balance of investment securities, including FHLB stock, was $244.4 million for the first six months of 2020, compared to $153.6 million for the first six months of 2019. The average yield on investment securities, including FHLB stock, was 2.00% for the first half of 2020, compared to 2.47% for the first half of 2019. Interest income earned on cash and cash equivalents decreased to $136,000 in the first half of 2020 compared to $328,000 in the first half of 2019. This was due to the significantly lower yield earned on funds at the Federal Reserve after the rate reductions experienced in the second half of 2019 and in March 2020.
Interest Expense. Interest expense decreased $514,000, or 9.3%, to $5.0 million for the six months ended June 30, 2020, compared to $5.6 million for the six months ended June 30, 2019. Interest expense on deposits decreased $465,000, or 11.6%, to $3.5 million for the first half of 2020, compared to $4.0 million in the first half of 2019. This decrease in interest expense on deposits was primarily attributable to the lower weighted average rate paid on interest-bearing deposits, as well as a decline in average balances of interest-bearing deposits. The weighted average rate paid on interest-bearing deposits was 1.23% for the six months ended June 30, 2020, compared to 1.37% for the six months ended June 30, 2019. Average balances of interest-bearing deposits declined $12.5 million, or 2.1%, to $574.4 million in the first six months of 2020 compared to the first six months of 2019. Interest expense on FHLB borrowings decreased $49,000, or 3.2%, to $1.5 million in the first half of 2020 compared to the first half of 2019. The average balance of FHLB borrowings totaled $172.9 million during the first six months of 2020, compared to $141.7 million for the first six months of 2019. The weighted average rate paid on FHLB borrowings was 1.75% for the first half of 2020, a 45 basis point decline from 2.20% for the first half of 2019.
Net Interest Income. Net interest income before the provision for loan and lease losses increased $1.3 million, or 9.0%, to $15.9 million in the first half of 2020, compared to $14.6 million for the first half of 2019. This increase was primarily due to an increase in average interest-earning assets during the first half of 2020 compared to the same period in 2019. Our net interest margin was 3.25% for six months ended June 30, 2020, compared to 3.35% for the six months ended June 30, 2019. The decrease in net interest margin was primarily due to yields earned on interest-earning assets declining at a faster rate than interest rates paid on interest-bearing liabilities. The market’s response to lowering deposit pricing to reflect the targeted federal funds rate decrease over the past year typically lags declines in the yield on interest earning assets. The average yield on PPP loans was 3.22% during the six months ended June 30, 2020, including the recognition of the net deferred fees, resulting in a negative impact on net interest margin of eight basis points for the six months ended June 30, 2020.
Average Balances, Interest and Average Yields/Cost.The following tables set forth for the periods indicated, information regarding average balances of assets and liabilities as well as the total dollar amounts of interest income from average interest-earning assets and interest expense on average interest-bearing liabilities, resultant yields, interest rate spread, net interest margin (otherwise known as net yield on interest-earning assets), and the ratio of average interest-earning assets to average interest-bearing liabilities. Average balances have been calculated using quarterly balances. Non-accruing loans have been included in the table as loans carrying a zero yield. Loan fees are included in interest income on loans and are not material.
|
|
| Six Months Ended June 30, | |||||||||||||||||||||
|
|
| 2020 |
| 2019 | |||||||||||||||||||
|
|
|
| Average Balance Outstanding |
|
|
| Interest Earned/ Paid |
| Yield/ Rate |
|
|
| Average Balance Outstanding |
|
|
|
| Interest Earned/ Paid |
| Yield/ Rate |
|
| |
|
|
|
| (Dollars in thousands) |
| |||||||||||||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Loans and leases receivable |
|
| $ | 692,055 |
|
| $ | 18,372 |
| 5.31 | % |
| $ | 677,688 |
|
| $ |
| 17,929 |
| 5.29 | % |
| |
Securities |
|
|
| 235,947 |
|
|
| 2,302 |
| 1.95 | % |
|
| 146,667 |
|
|
|
| 1,715 |
| 2.34 | % |
| |
FHLB stock |
|
|
| 8,479 |
|
|
| 139 |
| 3.28 | % |
|
| 6,916 |
|
|
|
| 183 |
| 5.29 | % |
| |
Cash and cash equivalents and other |
|
|
| 43,541 |
|
|
| 136 |
| 0.62 | % |
|
| 40,379 |
|
|
|
| 328 |
| 1.62 | % |
| |
Total interest-earning assets |
|
|
| 980,022 |
|
|
| 20,949 |
| 4.28 | % |
|
| 871,650 |
|
|
|
| 20,155 |
| 4.62 | % |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Savings and money market accounts |
|
|
| 173,352 |
|
|
| 545 |
| 0.63 | % |
|
| 171,736 |
|
|
|
| 628 |
| 0.73 | % |
| |
Interest-bearing checking accounts |
|
|
| 109,622 |
|
|
| 148 |
| 0.27 | % |
|
| 100,834 |
|
|
|
| 163 |
| 0.32 | % |
| |
Certificate accounts |
|
|
| 291,449 |
|
|
| 2,836 |
| 1.95 | % |
|
| 314,309 |
|
|
|
| 3,203 |
| 2.04 | % |
| |
Borrowings |
|
|
| 172,945 |
|
|
| 1,510 |
| 1.75 | % |
|
| 141,713 |
|
|
|
| 1,559 |
| 2.20 | % |
| |
Total interest-bearing liabilities |
|
|
| 747,368 |
|
|
| 5,039 |
| 1.35 | % |
|
| 728,592 |
|
|
|
| 5,553 |
| 1.52 | % |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net interest income |
|
|
|
|
|
| $ | 15,910 |
|
|
|
|
|
|
|
| $ |
| 14,602 |
|
|
|
| |
Net earning assets |
|
| $ | 232,654 |
|
|
|
|
|
|
|
| $ | 143,058 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net interest rate spread(1) |
|
|
|
|
|
|
|
|
| 2.93 | % |
|
|
|
|
|
|
|
|
| 3.10 | % |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net interest margin(2) |
|
|
|
|
|
|
|
|
| 3.25 | % |
|
|
|
|
|
|
|
|
| 3.35 | % |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Average interest-earning assets to average interest-bearing liabilities |
|
|
| 131.13 | % |
|
|
|
|
|
|
|
| 119.63 | % |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
___________________
(1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(2) Net interest margin represents net interest income divided by average total interest-earning assets.
Provision for Loan and Lease Losses.The provision for loan and lease losses for the six months ended June 30, 2020 totaled $1.5 million compared to $1.0 million for the six months ended June 30, 2019, a $520,000 or 51.5% increase. The increased provision was primarily due to the continued uncertainty of the economic impact of the COVID-19 pandemic on the Bank’s loan portfolio. Net charge-offs during the first half of 2020 were $98,000, compared to net charge-offs of $329,000 in the first half of 2019. As the COVID-19 pandemic continues, we expect to see continued pressure on asset quality. As management continues to monitor the loan portfolio, additional provisions may be required.
Non-Interest Income. Non-interest income increased $1.2 million, or 68.2%, to $3.0 million for the first six months of 2020, compared to $1.8 million for the same period in 2019. Gain on sale of loans and leases increased $1.0 million in the first half of 2020 to $1.3 million compared to $211,000 in the comparable period of 2019 as a result of increased mortgage banking activity due to lower rates. Service charges on deposit accounts declined $123,000, or 25.5%, in the first six months of 2020 compared to the first six months of 2019. This decrease was the result of waiving overdraft charges in the second quarter of 2020. Other loan fees increased $85,000,$165,000, or 34.8%199.1%, to $248,000 in the first halfquarter of 2021 compared to the comparable quarter of 2020 primarily due to a $58,000an increase in letter of credit fees and a $27,000 increase incommercial loan processing fees. Trust income increased $46,000,fees of $168,000 over the comparable quarter of 2020. Service fees on deposit accounts decreased $60,000, or 21.5%23.6%, to $194,000 for the quarter ended March 31, 2021, compared to $255,000 for the quarter ended March 31, 2020. The decrease in service fees on deposit accounts during the first six monthsquarter of 20202021 compared to the first six monthsquarter of 2019 due to an increase2020 was the result of higher customer balances maintained in assets under management.
Non-Interest Expense. Non-interest expense decreased $2.2increased $1.5 million, or 16.7%26.3%, to $11.2$7.0 million duringfor the first sixthree months of 2020 compared to $13.4ended March 31, 2021, from $5.5 million duringfor the same period in 2019.2020. Salaries and employee benefits declined $2.2increased $1.1 million, or 24.5%32.2%, to $4.4 million for the quarter ended March 31, 2021 from $3.4 million for the quarter ended March 31, 2020. The increase in salaries and benefits from the first quarter of 2020 primarily was due to $508,000 of expenses associated with equity awards granted during the fourth quarter of 2020 following shareholder approval of the Company's equity incentive plan, increased pension expense of $182,000, and increased compensation expense of $380,000 primarily as a result of annual merit increases and additional staff. Net occupancy expense increased $41,000, or 14.0% to $331,000 from $290,000 in the first halfsame quarter of 2020, primarily as a result of higher building maintenance expenses. Equipment expense increased $81,000, or 31.5% to $337,000 from the comparable period in 2020, primarily due to increased depreciation expense associated with replacing the Bank's ATM machines during the last quarter of 2020. Deposit insurance expense increased $15,000, or 26.8% compared to the first halfquarter of 2019. This decrease was2020 primarily due to growth in the $1.7 million pre-tax expense relatedBank's balance sheet and subsequent decline in its leverage ratio. Legal and professional fees increased $105,000, or 43.6% to the adoption of a nonqualified deferred compensation plan during the second quarter of 2019. Excluding this expense, salaries and employee benefits decreased $456,000, or 6.4%, for the first half of 2020$347,000 compared to the same quarter in 2020 primarily due to expenses associated with the contract renewal of the Company's data core processing, and routine litigation matters. Advertising expense declined $26,000 or 23.3%, from the first halfquarter of 2019. Salary expense2020, primarily due to less media advertising during the first quarter of 2021. Other expenses increased $49,000,$107,000, or 1.1%16.1%, to $771,000 in the first halfquarter of 2020, while benefit expense declined $505,000 in the first half of 20202021 compared to the first halfsame quarter of 20192020 primarily due to the lower cost of the ESOP compared to the Company’sloan related expenses increasing $40,000, debit card expenses increasing $8,000, and franchise tax expense increasing $70,000.
Income Tax Expense. Income tax expense increased $1.0 million during the first half of 2020, compared to the first half of 2019, primarily due to a $4.3 million increase in pre-tax income.lower tax rate. The effective tax rate for the first halfquarter of 20202021 was 20.6%18.7% compared to 14.1% in21.1% for the first half of 2019.
same quarter a year ago.
First Bank Richmond uses its sources of funds primarily to meet its ongoing commitments, pay maturing deposits, fund deposit withdrawals and fund loan and lease commitments. At June 30, 2020,March 31, 2021, outstanding loan and lease commitments, including unused lines and letters of credit, totaled $133.9$167.3 million, including $55.6$88.0 million of undisbursed construction and land loans. Certificates of deposit scheduled to mature in one year or less at June 30, 2020,March 31, 2021, totaled $265.2$54.4 million. It is management’s policy to offer deposit rates that are competitive with other local financial institutions. Based on this management strategy, we believe that a majority of maturing deposits will remain with the Bank.
deposits.
Except as set forth above, management is not aware of any trends, events, or uncertainties that will have, or that are reasonably likely to have a material impact on liquidity, capital resources or operations. Further, management is not aware of any current recommendations by regulatory agencies, which, if they were to be implemented, would have this effect.
Off-Balance Sheet Activities
|
|
|
|
|
|
|
| Required for |
|
| To Be Well |
| ||||||||||||
|
| Actual |
|
|
|
|
| Adequate Capital |
|
| Capitalized |
| ||||||||||||
|
| Amount |
|
| Ratio |
|
| Amount |
|
| Ratio |
|
| Amount |
|
| Ratio |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
As of June 30, 2020 |
| (Dollars in thousands) |
| |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital (to risk weighted assets) |
| $ | 115,769 |
|
|
| 20.1 | % |
| $ | 62,079 |
|
|
| 8.0 | % |
| $ | 77,599 |
|
|
| 10.0 | % |
Tier 1 risk-based capital (to risk weighted assets) |
|
| 147,248 |
|
|
| 19.0 |
|
|
| 46,559 |
|
|
| 6.0 |
|
|
| 62,079 |
|
|
| 8.0 |
|
Common equity tier 1 capital (to risk weighted assets) |
|
| 147,248 |
|
|
| 19.0 |
|
|
| 34,920 |
|
|
| 4.5 |
|
|
| 50,439 |
|
|
| 6.5 |
|
Tier 1 leverage (core) capital (to adjusted tangible assets) |
|
| 147,248 |
|
|
| 13.4 |
|
|
| 43,860 |
|
|
| 4.0 |
|
|
| 54,824 |
|
|
| 5.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital (to risk weighted assets) |
| $ | 149,137 |
|
|
| 19.5 | % |
| $ | 61,304 |
|
|
| 8.0 | % |
| $ | 76,629 |
|
|
| 10.0 | % |
Tier 1 risk-based capital (to risk weighted assets) |
|
| 142,048 |
|
|
| 18.5 |
|
|
| 45,978 |
|
|
| 6.0 |
|
|
| 61,304 |
|
|
| 8.0 |
|
Common equity tier 1 capital (to risk weighted assets) |
|
| 142,048 |
|
|
| 18.5 |
|
|
| 34,483 |
|
|
| 4.5 |
|
|
| 49,809 |
|
|
| 6.5 |
|
Tier 1 leverage (core) capital (to adjusted tangible assets) |
|
| 142,048 |
|
|
| 14.6 |
|
|
| 39,027 |
|
|
| 4.0 |
|
|
| 48,784 |
|
|
| 5.0 |
|
Actual | Required for Adequate Capital | To Be Well Capitalized | |||||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
As of March 31, 2021 | |||||||||||||||||||||||||||||||||||
Total risk-based capital (to risk weighted assets) | $ | 166,493 | 20.8 | % | $ | 64,114 | 8.0 | % | $ | 80,143 | 10.0 | % | |||||||||||||||||||||||
Tier 1 risk-based capital (to risk weighted assets) | 156,464 | 19.5 | 48,086 | 6.0 | 64,114 | 8.0 | |||||||||||||||||||||||||||||
Common equity tier 1 capital (to risk weighted assets) | 156,464 | 19.5 | 36,064 | 4.5 | 52,093 | 6.5 | |||||||||||||||||||||||||||||
Tier 1 leverage (core) capital (to adjusted tangible assets) | 156,464 | 14.2 | 44,120 | 4.0 | 55,150 | 5.0 | |||||||||||||||||||||||||||||
As of December 31, 2020 | |||||||||||||||||||||||||||||||||||
Total risk-based capital (to risk weighted assets) | $ | 162,624 | 21.9 | % | $ | 59,416 | 8.0 | % | $ | 74,270 | 10.0 | % | |||||||||||||||||||||||
Tier 1 risk-based capital (to risk weighted assets) | 153,325 | 20.6 | 44,562 | 6.0 | 59,416 | 8.0 | |||||||||||||||||||||||||||||
Common equity tier 1 capital (to risk weighted assets) | 153,325 | 20.6 | 33,422 | 4.5 | 48,276 | 6.5 | |||||||||||||||||||||||||||||
Tier 1 leverage (core) capital (to adjusted tangible assets) | 153,325 | 14.3 | 42,939 | 4.0 | 53,673 | 5.0 |
participation of our Chief Executive Officer, Chief Financial Officer
and several other members of senior management. Our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures in effect as ofIn light of recent developments relating to COVID-19,
The COVID-19 pandemic has impacted the way we conduct business which may adversely impact our financial results and those of our customers. The ultimate impact will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and actions taken by governmental authorities in response to the pandemic.
The COVID-19 pandemic has significantly affected the way we provide banking services to businesses which may adversely affect our operations. As an essential business, we continue to provide banking and financial services to our customers through our drive-up facilities and in-person services available by appointment. In addition, we continue to provide access to banking and financial services through online banking, ATMs and by telephone. If the COVID-19 pandemic worsens it could limit or disrupt our ability to provide banking and financial services to our customers.
Although the stay-at-home orders in Indiana and Oho have terminated and phased re-opening of businesses has commenced, the majority of our employees with the ability to work remotely have been encouraged to continue doing so while continuing to provide banking services to our customers. Heightened cybersecurity, information security and operational risks may result from these remote work-from-home arrangements. We also could be adversely affected if key personnel or a significant number of employees were to become unavailable due to the effects and restrictions of the COVID-19 pandemic. We also rely upon our third-party vendors to conduct business and to process, record and monitor transactions. If any of these vendors are unable to continue to provide us with these services, it could negatively impact our ability to serve our customers. Although we have business continuity plans and other safeguards in place, there is no assurance that such plans and safeguards will be effective.
There is pervasive uncertainty surrounding the future economic conditions that will emerge in the months and years following the start of the pandemic. As a result, management is confronted with a significant and unfamiliar degree of uncertainty in estimating the impact of the pandemic on credit quality, revenues and asset values. To date, the COVID-19 pandemic has resulted in declines in loan demand and loan originations, other than through government sponsored programs such as the Payroll Protection Program, deposit availability, market interest rates and negatively impacted many of our business and consumer borrower’s ability to make their loan payments. Because the length of the pandemic and the efficacy of the extraordinary measures being put in place to address its economic consequences are unknown, including a continued low targeted federal funds rate, until the pandemic subsides, we expect our net interest income and net interest margin will be adversely affected in the near term, if not longer. Many of our borrowers have become unemployed or may face unemployment, and certain businesses are at risk of insolvency as their revenues decline precipitously, especially in businesses related to travel, hospitality, leisure and physical personal services. Businesses may ultimately not reopen as there is a significant level of uncertainty regarding the level of economic activity that will return to our markets over time, the impact of governmental assistance, the speed of economic recovery, the resurgence of COVID-19 in subsequent seasons and changes to demographic and social norms that will take place.
The impact of the pandemic is expected to continue to adversely affect us during 2020 and possibly longer as the ability of many of our customers to make loan payments has been significantly affected. Although the Company makes estimates of loan losses related to the pandemic as part of its evaluation of the allowance for loan losses, such estimates involve significant judgment and are made in the context of significant uncertainty as to the impact the pandemic will have on the credit quality of our loan portfolio. It is likely that increased loan delinquencies, adversely classified loans and loan charge-offs will increase in the future as a result of the pandemic. Consistent with guidance provided by banking regulators, we have modified loans by providing various loan payment deferral options to our borrowers affected by the COVID-19 pandemic. Notwithstanding these modifications, these borrowers may not be able to resume making full payments on their loans once the COVID-19 pandemic is resolved. Any increases in the allowance for credit losses will result in a decrease in net income and, most likely, capital, and may have a material negative effect on our financial condition and results of operations.
As of June 30, 2020, we hold and service a portfolio of approximately 752 PPP loans with a balance of $75.1 million. The PPP loans are subject to the provisions of the CARES Act and to complex and evolving rules and guidance issued by the SBA and other government agencies. We expect that the vast majority of our PPP borrowers will seek full or partial forgiveness of their loan obligations. We could face additional risks in our administrative capabilities to service our PPP loans and risk with respect to the determination of loan forgiveness depending on the final procedures for determining loan forgiveness. Further, since the commencement of the PPP, several larger banks have been subject to litigation regarding their processing of PPP loan applications. The Bank may be exposed to the risk of similar litigation, from both customers and non-customers that approached the Bank seeking PPP loans. PPP lenders, including the Bank, may also be subject to the risk of litigation in connection with other aspects of the PPP, including but not limited to borrowers seeking forgiveness of their loans and PPP agents seeking fees from PPP lenders for assisting borrowers in securing PPP loans. If any such litigation is filed against the Bank, it may result in significant financial or reputational harm to us.
Even after the COVID-19 pandemic subsides, the U.S. economy will likely require some time to recover from its effects, the length of which is unknown. and during which we may experience a recession. As a result, we anticipate our business may be materially and adversely affected during this recovery. To the extent the effects of the COVID-19 pandemic adversely impact our business, financial condition, liquidity or results of operations, it may also have the effect of heightening many of the other risks described in the section entitled "Risk Factors" in our 2019 Form 10-K.
Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs | Maximum number of shares that may yet be purchased under the plans or programs | ||||||||||||||||||||
January 1, 2021 - January 31, 2021 | 44,491 | $ | 13.63 | 44,491 | 514,858 | ||||||||||||||||||
February 1, 2021 - February 28, 2021 | 42,705 | 13.08 | 42,705 | 472,153 | |||||||||||||||||||
March 1, 2021 - March 31, 2021 | 55,568 | 13.92 | 55,568 | 416,585 | |||||||||||||||||||
142,764 | $ | 13.58 | 142,764 | 416,585 |
| ||||||||
Charter of Richmond Mutual Bancorporation, Inc. | ||||||||
Bylaws of Richmond Mutual Bancorporation, Inc. (incorporated by reference to Exhibit 3.2 of the Company’s Registration Statement on Form S-1 (Commission File No. 333-230184)) | ||||||||
Form of Common Stock Certificate of Richmond Mutual Bancorporation, Inc. (incorporated by reference to Exhibit 4.0 of the Company’s Registration Statement on Form S-1 (Commission File No. 333-230184)) | ||||||||
101.0 | The following materials for the quarter ended | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
RICHMOND MUTUAL BANCORPORATION, INC. | ||||||||
Date: | By: | /s/ Garry D. Kleer | ||||||
Garry D. Kleer | ||||||||
Chairman, President and CEO | ||||||||
(Duly Authorized Officer) | ||||||||
Date: | By: | /s/ Donald A. Benziger | ||||||
Donald A. Benziger | ||||||||
Executive Vice President and CFO | ||||||||
(Principal Financial and Accounting Officer) | ||||||||
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