Pennsylvania | 23-2486815 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
50 South 16th Street, Philadelphia, Pennsylvania | 19102 |
(Address of principal executive offices) | (Zip code) |
Large accelerated filer [ ] | Accelerated filer [X] |
Non-Accelerated filer [ ] (Do not check if a smaller reporting company) | Smaller reporting company [ ] |
Common Stock, par value $0.01 per share | 37,917,378 |
Title of Class | Number of Shares Outstanding as of |
REPUBLIC FIRST BANCORP, INC. AND SUBSIDIARIES | ||
TABLE OF CONTENTS | ||
Part I: Financial Information | Page | |
Item 1. | Financial Statements | |
Consolidated balance sheets as of | ||
Consolidated statements of income for the three and | ||
Consolidated statements of comprehensive income | 2 3 | |
Consolidated statements of cash flows for the | 4 | |
Consolidated statements of changes in shareholders' equity for the | 5 | |
Notes to consolidated financial statements (unaudited) | ||
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | 41 |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 61 |
Item 4. | Controls and Procedures | 61 |
Part II: Other Information | ||
Item 1. | Legal Proceedings | 62 |
Item 1A. | Risk Factors | 62 |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 62 |
Item 3. | Defaults Upon Senior Securities | 62 |
Item 4. | Mine Safety Disclosures | 62 |
Item 5. | Other Information | 62 |
Item 6. | Exhibits | 63 |
Signatures | 64 |
June 30, 2016 | December 31, 2015 | September 30, 2016 | December 31, 2015 | |||||||||||||
ASSETS | ||||||||||||||||
Cash and due from banks | $ | 18,561 | $ | 13,777 | $ | 23,061 | $ | 13,777 | ||||||||
Interest bearing deposits with banks | 93,211 | 13,362 | 126,980 | 13,362 | ||||||||||||
Cash and cash equivalents | 111,772 | 27,139 | 150,041 | 27,139 | ||||||||||||
Investment securities available for sale, at fair value | 253,289 | 284,795 | 299,385 | 284,795 | ||||||||||||
Investment securities held to maturity, at amortized cost (fair value of $203,186 and $171,845, respectively) | 199,074 | 172,277 | ||||||||||||||
Investment securities held to maturity, at amortized cost (fair value of $223,247 and $171,845, respectively) | 220,470 | 172,277 | ||||||||||||||
Restricted stock, at cost | 1,367 | 3,059 | 1,366 | 3,059 | ||||||||||||
Loans held for sale | 5,487 | 3,653 | 29,715 | 3,653 | ||||||||||||
Loans receivable (net of allowance for loan losses of $8,761 and $8,703, respectively) | 920,993 | 866,066 | ||||||||||||||
Loans receivable (net of allowance for loan losses of $9,453 and $8,703, respectively) | 936,088 | 866,066 | ||||||||||||||
Premises and equipment, net | 53,617 | 46,164 | 55,573 | 46,164 | ||||||||||||
Other real estate owned, net | 11,974 | 11,313 | 10,271 | 11,313 | ||||||||||||
Accrued interest receivable | 4,367 | 4,216 | 4,588 | 4,216 | ||||||||||||
Goodwill | 4,892 | - | ||||||||||||||
Intangible asset | 87 | - | ||||||||||||||
Other assets | 20,307 | 20,761 | 21,986 | 20,761 | ||||||||||||
Total Assets | $ | 1,582,247 | $ | 1,439,443 | $ | 1,734,462 | $ | 1,439,443 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||
Liabilities | ||||||||||||||||
Deposits | ||||||||||||||||
Demand – non-interest bearing | $ | 281,496 | $ | 243,695 | $ | 302,372 | $ | 243,695 | ||||||||
Demand – interest bearing | 472,575 | 381,499 | 587,197 | 381,499 | ||||||||||||
Money market and savings | 574,051 | 556,526 | 583,536 | 556,526 | ||||||||||||
Time deposits | 106,129 | 67,578 | 109,127 | 67,578 | ||||||||||||
Total Deposits | 1,434,251 | 1,249,298 | 1,582,232 | 1,249,298 | ||||||||||||
Short-term borrowings | - | 47,000 | - | 47,000 | ||||||||||||
Accrued interest payable | 313 | 245 | 339 | 245 | ||||||||||||
Other liabilities | 6,637 | 7,049 | 9,763 | 7,049 | ||||||||||||
Subordinated debt | 22,476 | 22,476 | 22,476 | 22,476 | ||||||||||||
Total Liabilities | 1,463,677 | 1,326,068 | 1,614,810 | 1,326,068 | ||||||||||||
Shareholders' Equity | ||||||||||||||||
Preferred stock, par value $0.01 per share: 10,000,000 shares authorized; no shares issued and outstanding | - | - | - | - | ||||||||||||
Common stock, par value $0.01 per share: 100,000,000 shares authorized; shares issued 38,442,473 as of June 30, 2016 and 38,365,848 as of December 31, 2015; shares outstanding 37,913,628 as of June 30, 2016 and 37,837,003 as of December 31, 2015 | 384 | 384 | ||||||||||||||
Common stock, par value $0.01 per share: 100,000,000 shares authorized; shares issued 38,446,223 as of September 30, 2016 and 38,365,848 as of December 31, 2015; shares outstanding 37,917,378 as of September 30, 2016 and 37,837,003 as of December 31, 2015 | 384 | 384 | ||||||||||||||
Additional paid in capital | 153,476 | 152,897 | 153,887 | 152,897 | ||||||||||||
Accumulated deficit | (30,725 | ) | (32,833 | ) | (29,385 | ) | (32,833 | ) | ||||||||
Treasury stock at cost (503,408 shares as of June 30, 2016 and December 31, 2015) | (3,725 | ) | (3,725 | ) | ||||||||||||
Stock held by deferred compensation plan (25,437 shares as of June 30, 2016 and December 31, 2015) | (183 | ) | (183 | ) | ||||||||||||
Treasury stock at cost (503,408 shares as of September 30, 2016 and December 31, 2015) | (3,725 | ) | (3,725 | ) | ||||||||||||
Stock held by deferred compensation plan (25,437 shares as of September 30, 2016 and December 31, 2015) | (183 | ) | (183 | ) | ||||||||||||
Accumulated other comprehensive loss | (657 | ) | (3,165 | ) | (1,326 | ) | (3,165 | ) | ||||||||
Total Shareholders' Equity | 118,570 | 113,375 | 119,652 | 113,375 | ||||||||||||
Total Liabilities and Shareholders' Equity | $ | 1,582,247 | $ | 1,439,443 | $ | 1,734,462 | $ | 1,439,443 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||
Interest income: | ||||||||||||||||||||||||||||||||
Interest and fees on taxable loans | $ | 10,096 | $ | 9,142 | $ | 19,813 | $ | 18,093 | $ | 10,446 | $ | 9,518 | $ | 30,259 | $ | 27,611 | ||||||||||||||||
Interest and fees on tax-exempt loans | 227 | 128 | 441 | 254 | 261 | 130 | 702 | 384 | ||||||||||||||||||||||||
Interest and dividends on taxable investment securities | 2,620 | 1,405 | 5,214 | 2,887 | 2,591 | 1,509 | 7,805 | 4,396 | ||||||||||||||||||||||||
Interest and dividends on tax-exempt investment securities | 179 | 138 | 353 | 263 | 173 | 153 | 526 | 416 | ||||||||||||||||||||||||
Interest on federal funds sold and other interest-earning assets | 87 | 86 | 150 | 163 | 149 | 60 | 299 | 223 | ||||||||||||||||||||||||
Total interest income | 13,209 | 10,899 | 25,971 | 21,660 | 13,620 | 11,370 | 39,591 | 33,030 | ||||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||||||
Demand- interest bearing | 503 | 341 | 918 | 631 | 553 | 378 | 1,471 | 1,009 | ||||||||||||||||||||||||
Money market and savings | 637 | 501 | 1,246 | 1,054 | 677 | 538 | 1,923 | 1,592 | ||||||||||||||||||||||||
Time deposits | 183 | 170 | 324 | 345 | 301 | 183 | 625 | 528 | ||||||||||||||||||||||||
Other borrowings | 289 | 278 | 595 | 554 | 303 | 279 | 898 | 833 | ||||||||||||||||||||||||
Total interest expense | 1,612 | 1,290 | 3,083 | 2,584 | 1,834 | 1,378 | 4,917 | 3,962 | ||||||||||||||||||||||||
Net interest income | 11,597 | 9,609 | 22,888 | 19,076 | 11,786 | 9,992 | 34,674 | 29,068 | ||||||||||||||||||||||||
Provision for loan losses | 650 | - | 950 | - | 607 | - | 1,557 | - | ||||||||||||||||||||||||
Net interest income after provision for loan losses | 10,947 | 9,609 | 21,938 | 19,076 | 11,179 | 9,992 | 33,117 | 29,068 | ||||||||||||||||||||||||
Non-interest income: | ||||||||||||||||||||||||||||||||
Loan advisory and servicing fees | 197 | 325 | 800 | 924 | 218 | 163 | 1,018 | 1,087 | ||||||||||||||||||||||||
Gain on sales of SBA loans | 1,749 | 1,222 | 2,582 | 1,800 | ||||||||||||||||||||||||||||
Gain on sales of loans | 4,413 | 884 | 6,995 | 2,684 | ||||||||||||||||||||||||||||
Service fees on deposit accounts | 654 | 398 | 1,224 | 761 | 686 | 452 | 1,910 | 1,213 | ||||||||||||||||||||||||
Gain on sale of investment securities | 358 | 9 | 654 | 9 | 2 | 64 | 656 | 73 | ||||||||||||||||||||||||
Other-than-temporary impairment | (25 | ) | - | (27 | ) | (13 | ) | (12 | ) | - | (39 | ) | (13 | ) | ||||||||||||||||||
Portion recognized in other comprehensive income (before taxes) | 21 | - | 22 | 10 | 10 | - | 32 | 10 | ||||||||||||||||||||||||
Net impairment loss on investment securities | (4 | ) | - | (5 | ) | (3 | ) | (2 | ) | - | (7 | ) | (3 | ) | ||||||||||||||||||
Other non-interest income | 77 | 68 | 188 | 108 | 94 | 41 | 282 | 149 | ||||||||||||||||||||||||
Total non-interest income | 3,031 | 2,022 | 5,443 | 3,599 | 5,411 | 1,604 | 10,854 | 5,203 | ||||||||||||||||||||||||
Non-interest expenses: | ||||||||||||||||||||||||||||||||
Salaries and employee benefits | 6,551 | 5,715 | 12,603 | 10,937 | 7,731 | 5,730 | 20,334 | 16,667 | ||||||||||||||||||||||||
Occupancy | 1,447 | 1,219 | 2,852 | 2,384 | 1,535 | 1,240 | 4,387 | 3,624 | ||||||||||||||||||||||||
Depreciation and amortization | 796 | 732 | 1,765 | 1,455 | 1,051 | 671 | 2,816 | 2,126 | ||||||||||||||||||||||||
Legal | 66 | 340 | 154 | 579 | 158 | 52 | 312 | 631 | ||||||||||||||||||||||||
Other real estate owned | 323 | 371 | 908 | 748 | 702 | 425 | 1,610 | 1,173 | ||||||||||||||||||||||||
Advertising | 190 | 91 | 319 | 242 | 218 | 233 | 537 | 475 | ||||||||||||||||||||||||
Data processing | 575 | 373 | 1,042 | 725 | 669 | 408 | 1,711 | 1,133 | ||||||||||||||||||||||||
Insurance | 188 | 190 | 394 | 370 | 262 | 162 | 656 | 532 | ||||||||||||||||||||||||
Professional fees | 455 | 350 | 815 | 675 | 352 | 293 | 1,167 | 968 | ||||||||||||||||||||||||
Regulatory assessments and costs | 373 | 301 | 715 | 593 | 296 | 318 | 1,011 | 911 | ||||||||||||||||||||||||
Taxes, other | 228 | 204 | 252 | 425 | 243 | 169 | 495 | 594 | ||||||||||||||||||||||||
Other operating expenses | 1,775 | 1,217 | 3,491 | 2,488 | 2,065 | 1,323 | 5,556 | 3,811 | ||||||||||||||||||||||||
Total non-interest expense | 12,967 | 11,103 | 25,310 | 21,621 | 15,282 | 11,024 | 40,592 | 32,645 | ||||||||||||||||||||||||
Income before benefit for income taxes | 1,011 | 528 | 2,071 | 1,054 | 1,308 | 572 | 3,379 | 1,626 | ||||||||||||||||||||||||
Benefit for income taxes | (12 | ) | (5 | ) | (37 | ) | (7 | ) | (32 | ) | (10 | ) | (69 | ) | (17 | ) | ||||||||||||||||
Net income | $ | 1,023 | $ | 533 | $ | 2,108 | $ | 1,061 | $ | 1,340 | $ | 582 | $ | 3,448 | $ | 1,643 | ||||||||||||||||
Net income per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.03 | $ | 0.01 | $ | 0.06 | $ | 0.03 | $ | 0.04 | $ | 0.02 | $ | 0.09 | $ | 0.04 | ||||||||||||||||
Diluted | $ | 0.03 | $ | 0.01 | $ | 0.05 | $ | 0.03 | $ | 0.03 | $ | 0.02 | $ | 0.09 | $ | 0.04 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Net income | $ | 1,340 | $ | 582 | $ | 3,448 | $ | 1,643 | ||||||||
Other comprehensive income (loss), net of tax | ||||||||||||||||
Unrealized gain (loss) on securities (pre-tax $(1,082), $490, $3,386, and $(718), respectively) | (693 | ) | 314 | 2,170 | (460 | ) | ||||||||||
Reclassification adjustment for securities gains (pre-tax $(2), $(64), $(656), and $(73), respectively) | (1 | ) | (41 | ) | (420 | ) | (47 | ) | ||||||||
Reclassification adjustment for impairment charge (pre- tax $2, $-, $7, and $3, respectively) | 1 | - | 4 | 2 | ||||||||||||
Net unrealized gains (losses) on securities | (693 | ) | 273 | 1,754 | (505 | ) | ||||||||||
Net unrealized holding losses on securities transferred from available-for-sale to held-to-maturity: | ||||||||||||||||
Amortization of net unrealized holding losses to income during the period (pre-tax $38, $25, $133, and $128, respectively) | 24 | 16 | 85 | 82 | ||||||||||||
Total other comprehensive income (loss) | (669 | ) | 289 | 1,839 | (423 | ) | ||||||||||
Total comprehensive income | $ | 671 | $ | 871 | $ | 5,287 | $ | 1,220 |
Nine Months Ended September 30, | ||||||||
2016 | 2015 | |||||||
Cash flows from operating activities | ||||||||
Net income | $ | 3,448 | $ | 1,643 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Provision for loan losses | 1,557 | - | ||||||
Write down of other real estate owned | 521 | 298 | ||||||
Depreciation and amortization | 2,816 | 2,126 | ||||||
Stock based compensation | 562 | 441 | ||||||
Gain on sale of investment securities | (656 | ) | (73 | ) | ||||
Impairment charges on investment securities | 7 | 3 | ||||||
Amortization of premiums on investment securities | 1,172 | 635 | ||||||
Accretion of discounts on retained SBA loans | (1,057 | ) | (754 | ) | ||||
Fair value adjustments on SBA servicing assets | 894 | 597 | ||||||
Proceeds from sales of SBA loans originated for sale | 48,031 | 27,999 | ||||||
SBA loans originated for sale | (43,016 | ) | (24,128 | ) | ||||
Gains on sales of SBA loans originated for sale | (4,212 | ) | (2,684 | ) | ||||
Proceeds from sales of mortgage loans originated for sale | 79,029 | - | ||||||
Mortgage loans originated for sale | (82,240 | ) | - | |||||
Gains on sales of mortgage loans originated for sale | (2,783 | ) | - | |||||
Amortization of intangible assets | 17 | - | ||||||
Increase in accrued interest receivable and other assets | (704 | ) | (3,302 | ) | ||||
Decrease in accrued interest payable and other liabilities | (396 | ) | (712 | ) | ||||
Net cash provided by operating activities | 2,990 | 2,089 | ||||||
Cash flows from investing activities | ||||||||
Purchase of investment securities available for sale | (117,812 | ) | (57,807 | ) | ||||
Purchase of investment securities held to maturity | (69,792 | ) | (85,246 | ) | ||||
Proceeds from the sale of securities available for sale | 78,582 | 6,672 | ||||||
Proceeds from the paydowns, maturity, or call of securities available for sale | 26,295 | 26,397 | ||||||
Proceeds from the paydowns, maturity, or call of securities held to maturity | 21,106 | 12,768 | ||||||
Redemption (purchase) of restricted stock | 1,693 | (22 | ) | |||||
Net increase in loans | (70,006 | ) | (77,027 | ) | ||||
Net proceeds from sale of other real estate owned | 1,387 | 792 | ||||||
Net cash paid in acquisition | (5,913 | ) | - | |||||
Premises and equipment expenditures | (12,122 | ) | (12,190 | ) | ||||
Net cash used in investing activities | (146,582 | ) | (185,663 | ) | ||||
Cash flows from financing activities | ||||||||
Net proceeds from exercise of stock options | 226 | 1 | ||||||
Net increase in demand, money market and savings deposits | 291,385 | 165,565 | ||||||
Net increase (decrease) in time deposits | 41,549 | (299 | ) | |||||
Decrease in short-term borrowings | (66,666 | ) | - | |||||
Net cash provided by financing activities | 266,494 | 165,267 | ||||||
Net increase (decrease) in cash and cash equivalents | 122,902 | (18,307 | ) | |||||
Cash and cash equivalents, beginning of year | 27,139 | 128,826 | ||||||
Cash and cash equivalents, end of period | $ | 150,041 | $ | 110,519 | ||||
Supplemental disclosures | ||||||||
Interest paid | $ | 5,011 | $ | 3,944 | ||||
Income taxes paid | $ | 90 | $ | - | ||||
Non-cash transfers from loans to other real estate owned | $ | 616 | $ | 11,148 |
Common Stock | Additional Paid in Capital | Accumulated Deficit | Treasury Stock | Stock Held by Deferred Compensation Plan | Accumulated Other Comprehensive Loss | Total Shareholders' Equity | ||||||||||||||||||||||
Balance January 1, 2016 | $ | 384 | $ | 152,897 | $ | (32,833 | ) | $ | (3,725 | ) | $ | (183 | ) | $ | (3,165 | ) | $ | 113,375 | ||||||||||
Net income | 3,448 | 3,448 | ||||||||||||||||||||||||||
Other comprehensive income, net of tax | 1,839 | 1,839 | ||||||||||||||||||||||||||
Stock based compensation | 764 | 764 | ||||||||||||||||||||||||||
Options exercised (80,375 shares) | 226 | 226 | ||||||||||||||||||||||||||
Balance September 30, 2016 | $ | 384 | $ | 153,887 | $ | (29,385 | ) | $ | (3,725 | ) | $ | (183 | ) | $ | (1,326 | ) | $ | 119,652 | ||||||||||
Balance January 1, 2015 | $ | 383 | $ | 152,234 | $ | (35,266 | ) | $ | (3,725 | ) | $ | (183 | ) | $ | (632 | ) | $ | 112,811 | ||||||||||
Net income | 1,643 | 1,643 | ||||||||||||||||||||||||||
Other comprehensive loss, net of tax | (423 | ) | (423 | ) | ||||||||||||||||||||||||
Stock based compensation | 441 | 441 | ||||||||||||||||||||||||||
Options exercised (500 shares) | 1 | 1 | ||||||||||||||||||||||||||
Balance September 30, 2015 | $ | 383 | $ | 152,676 | $ | (33,623 | ) | $ | (3,725 | ) | $ | (183 | ) | $ | (1,055 | ) | $ | 114,473 | ||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Net income | $ | 1,023 | $ | 533 | $ | 2,108 | $ | 1,061 | ||||||||
Other comprehensive income (loss), net of tax | ||||||||||||||||
Unrealized gain (loss) on securities (pre-tax $1,156, $(1,838), $4,468, and $(1,208), respectively) | 741 | (1,178 | ) | 2,863 | (774 | ) | ||||||||||
Reclassification adjustment for securities gains (pre-tax $(358), $(9), $(654), and $(9), respectively) | (229 | ) | (6 | ) | (419 | ) | (6 | ) | ||||||||
Reclassification adjustment for impairment charge (pre-tax $4, $-, $5, and $3, respectively) | 2 | - | 3 | 2 | ||||||||||||
Net unrealized gains (losses) on securities | 514 | (1,184 | ) | 2,447 | (778 | ) | ||||||||||
Net unrealized holding losses on securities transferred from available-for-sale to held-to-maturity: | ||||||||||||||||
Amortization of net unrealized holding losses to income during the period (pre-tax $37, $45, $95, and $103 respectively) | 24 | 29 | 61 | 66 | ||||||||||||
Total other comprehensive income (loss) | 538 | (1,155 | ) | 2,508 | (712 | ) | ||||||||||
Total comprehensive income (loss) | $ | 1,561 | $ | (622 | ) | $ | 4,616 | $ | 349 |
Six Months Ended June 30, | ||||||||
2016 | 2015 | |||||||
Cash flows from operating activities | ||||||||
Net income | $ | 2,108 | $ | 1,061 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
Provision for loan losses | 950 | - | ||||||
Write down of other real estate owned | 129 | 298 | ||||||
Depreciation and amortization | 1,765 | 1,455 | ||||||
Stock based compensation | 367 | 279 | ||||||
Gain on sale and call of investment securities | (654 | ) | (9 | ) | ||||
Impairment charges on investment securities | 5 | 3 | ||||||
Amortization of premiums on investment securities | 637 | 312 | ||||||
Accretion of discounts on retained SBA loans | (677 | ) | (496 | ) | ||||
Fair value adjustments on SBA servicing assets | 570 | 225 | ||||||
Proceeds from sales of SBA loans originated for sale | 28,918 | 18,383 | ||||||
SBA loans originated for sale | (28,170 | ) | (18,371 | ) | ||||
Gains on sales of SBA loans originated for sale | (2,582 | ) | (1,800 | ) | ||||
Increase in accrued interest receivable and other assets | (1,671 | ) | (1,805 | ) | ||||
Decrease in accrued interest payable and other liabilities | (593 | ) | (375 | ) | ||||
Net cash provided by (used in) operating activities | 1,102 | (840 | ) | |||||
Cash flows from investing activities | ||||||||
Purchase of investment securities available for sale | (55,937 | ) | (9,678 | ) | ||||
Purchase of investment securities held to maturity | (38,073 | ) | (56,741 | ) | ||||
Proceeds from the sale of securities available for sale | 78,582 | 4,081 | ||||||
Proceeds from the paydowns, maturity, or call of securities available for sale | 13,031 | 13,459 | ||||||
Proceeds from the paydowns, maturity, or call of securities held to maturity | 11,029 | 5,226 | ||||||
Redemption (purchase) of restricted stock | 1,692 | (22 | ) | |||||
Net increase in loans | (55,816 | ) | (53,790 | ) | ||||
Net proceeds from sale of other real estate owned | 76 | 468 | ||||||
Premises and equipment expenditures | (9,218 | ) | (7,386 | ) | ||||
Net cash used in investing activities | (54,634 | ) | (104,383 | ) | ||||
Cash flows from financing activities | ||||||||
Net proceeds from exercise of stock options | 212 | - | ||||||
Net increase in demand, money market and savings deposits | 146,402 | 60,904 | ||||||
Net increase (decrease) in time deposits | 38,551 | (3,337 | ) | |||||
Decrease in short-term borrowings | (47,000 | ) | - | |||||
Net cash provided by financing activities | 138,165 | 57,567 | ||||||
Net increase (decrease) in cash and cash equivalents | 84,633 | (47,656 | ) | |||||
Cash and cash equivalents, beginning of year | 27,139 | 128,826 | ||||||
Cash and cash equivalents, end of period | $ | 111,772 | $ | 81,170 | ||||
Supplemental disclosures | ||||||||
Interest paid | $ | 3,015 | $ | 2,614 | ||||
Income taxes paid | $ | 60 | $ | - | ||||
Non-cash transfers from loans to other real estate owned | $ | 616 | $ | 10,213 |
Common Stock | Additional Paid in Capital | Accumulated Deficit | Treasury Stock | Stock Held by Deferred Compensation Plan | Accumulated Other Comprehensive Loss | Total Shareholders' Equity | ||||||||||||||||||||||
Balance January 1, 2016 | $ | 384 | $ | 152,897 | $ | (32,833 | ) | $ | (3,725 | ) | $ | (183 | ) | $ | (3,165 | ) | $ | 113,375 | ||||||||||
Net income | 2,108 | 2,108 | ||||||||||||||||||||||||||
Other comprehensive income, net of tax | 2,508 | 2,508 | ||||||||||||||||||||||||||
Stock based compensation | 367 | 367 | ||||||||||||||||||||||||||
Options exercised (76,625 shares) | 212 | 212 | ||||||||||||||||||||||||||
Balance June 30, 2016 | $ | 384 | $ | 153,476 | $ | (30,725 | ) | $ | (3,725 | ) | $ | (183 | ) | $ | (657 | ) | $ | 118,570 | ||||||||||
Balance January 1, 2015 | $ | 383 | $ | 152,234 | $ | (35,266 | ) | $ | (3,725 | ) | $ | (183 | ) | $ | (632 | ) | $ | 112,811 | ||||||||||
Net income | 1,061 | 1,061 | ||||||||||||||||||||||||||
Other comprehensive loss, net of tax | (712 | ) | (712 | ) | ||||||||||||||||||||||||
Stock based compensation | 279 | 279 | ||||||||||||||||||||||||||
Balance June 30, 2015 | $ | 383 | $ | 152,513 | $ | (34,205 | ) | $ | (3,725 | ) | $ | (183 | ) | $ | (1,344 | ) | $ | 113,439 |
2016 | 2015 | 2016 | 2015 | |||||||
Dividend yield(1) | 0.0% | 0.0% | 0.0% | 0.0% | ||||||
Expected volatility(2) | 47.59% to 52.54% | 53.78% to 56.00% | 46.38% to 52.54% | 53.78% to 56.00% | ||||||
Risk-free interest rate(3) | 1.23% to 1.82% | 1.49% to 2.00% | 1.23% to 1.82% | 1.49% to 2.00% | ||||||
Expected life(4) | 5.5 to 7.0 years | 5.5 to 7.0 years | 5.5 to 7.0 years | 5.5 to 7.0 years | ||||||
Assumed forfeiture rate | 10.0% | 19.0% | 10.0% | 19.0% |
2016 | 2015 | September 30, 2016 | September 30, 2015 | |||||||||||||
Stock based compensation expense recognized | $ | 367,000 | $ | 279,000 | $ | 764,000 | $ | 441,000 | ||||||||
Number of unvested stock options | 1,218,476 | 1,218,651 | 1,316,476 | 1,185,151 | ||||||||||||
Fair value of unvested stock options | $ | 2,408,636 | $ | 1,927,048 | $ | 2,608,986 | $ | 1,908,205 | ||||||||
Amount remaining to be recognized as expense | $ | 1,479,287 | $ | 1,194,289 | $ | 1,284,071 | $ | 1,034,337 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||
Net income (basic and diluted) | $ | 1,023 | $ | 533 | $ | 2,108 | $ | 1,061 | $ | 1,340 | $ | 582 | $ | 3,448 | $ | 1,643 | ||||||||||||||||
Weighted average shares outstanding | 37,882 | 37,816 | 37,860 | 37,816 | 37,916 | 37,816 | 37,879 | 37,816 | ||||||||||||||||||||||||
Net income per share – basic | $ | 0.03 | $ | 0.01 | $ | 0.06 | $ | 0.03 | $ | 0.04 | $ | 0.02 | $ | 0.09 | $ | 0.04 | ||||||||||||||||
Weighted average shares outstanding (including dilutive CSEs) | 38,422 | 38,049 | 38,344 | 38,048 | 38,375 | 38,064 | 38,355 | 38,052 | ||||||||||||||||||||||||
Net income per share – diluted | $ | 0.03 | $ | 0.01 | $ | 0.05 | $ | 0.03 | $ | 0.03 | $ | 0.02 | $ | 0.09 | $ | 0.04 |
(in thousands) | Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||
Anti-dilutive securities | |||||||||||||||||||||||||||
Share based compensation awards | 1,855 | 1,757 | 1,910 | 1,758 | 2,022 | 1,735 | 2,005 | 1,747 | |||||||||||||||||||
Convertible securities | 1,662 | 1,662 | 1,662 | 1,662 | 1,662 | 1,662 | 1,662 | 1,662 | |||||||||||||||||||
Total anti-dilutive securities | 3,517 | 3,419 | 3,572 | 3,420 | 3,684 | 3,397 | 3,667 | 3,409 |
At June 30, 2016 | At September 30, 2016 | |||||||||||||||||||||||||||||||
(dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||||||
Collateralized mortgage obligations | $ | 150,708 | $ | 2,292 | $ | (134 | ) | $ | 152,866 | $ | 199,622 | $ | 1,414 | $ | (640 | ) | $ | 200,396 | ||||||||||||||
Agency mortgage-backed securities | 9,357 | 67 | (5 | ) | 9,419 | 11,632 | 73 | (19 | ) | 11,686 | ||||||||||||||||||||||
Municipal securities | 24,141 | 1,131 | - | 25,272 | 23,383 | 1,067 | (8 | ) | 24,442 | |||||||||||||||||||||||
Corporate bonds | 49,256 | 52 | (1,509 | ) | 47,799 | 46,737 | 32 | (1,341 | ) | 45,428 | ||||||||||||||||||||||
Asset-backed securities | 16,825 | - | (762 | ) | 16,063 | 16,183 | - | (466 | ) | 15,717 | ||||||||||||||||||||||
Trust preferred securities | 3,065 | - | (1,310 | ) | 1,755 | 3,063 | - | (1,372 | ) | 1,691 | ||||||||||||||||||||||
Other securities | 115 | - | - | 115 | 25 | - | - | 25 | ||||||||||||||||||||||||
Total securities available for sale | $ | 253,467 | $ | 3,542 | $ | (3,720 | ) | $ | 253,289 | $ | 300,645 | $ | 2,586 | $ | (3,846 | ) | $ | 299,385 | ||||||||||||||
U.S. Government agencies | $ | 16,651 | $ | 244 | $ | (10 | ) | $ | 16,885 | $ | 28,468 | $ | 310 | $ | (58 | ) | $ | 28,720 | ||||||||||||||
Collateralized mortgage obligations | 164,150 | 3,602 | (114 | ) | 167,638 | 155,098 | 2,396 | (219 | ) | 157,275 | ||||||||||||||||||||||
Agency mortgage-backed securities | 17,253 | 390 | - | 17,643 | 35,884 | 348 | - | 36,232 | ||||||||||||||||||||||||
Other securities | 1,020 | - | - | 1,020 | 1,020 | - | - | 1,020 | ||||||||||||||||||||||||
Total securities held to maturity | $ | 199,074 | $ | 4,236 | $ | (124 | ) | $ | 203,186 | $ | 220,470 | $ | 3,054 | $ | (277 | ) | $ | 223,247 |
At December 31, 2015 | ||||||||||||||||
(dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
Collateralized mortgage obligations | $ | 180,795 | $ | 523 | $ | (3,173 | ) | $ | 178,145 | |||||||
Agency mortgage-backed securities | 10,073 | 176 | (78 | ) | 10,171 | |||||||||||
Municipal securities | 22,814 | 562 | (32 | ) | 23,344 | |||||||||||
Corporate bonds | 54,294 | 135 | (300 | ) | 54,129 | |||||||||||
Asset-backed securities | 17,631 | - | (626 | ) | 17,005 | |||||||||||
Trust preferred securities | 3,070 | - | (1,187 | ) | 1,883 | |||||||||||
Other securities | 115 | 3 | - | 118 | ||||||||||||
Total securities available for sale | $ | 288,792 | $ | 1,399 | $ | (5,396 | ) | $ | 284,795 | |||||||
U.S. Government agencies | $ | 17,067 | $ | 39 | $ | (72 | ) | $ | 17,034 | |||||||
Collateralized mortgage obligations | 146,458 | 402 | (780 | ) | 146,080 | |||||||||||
Agency mortgage-backed securities | 7,732 | - | (21 | ) | 7,711 | |||||||||||
Other securities | 1,020 | - | - | 1,020 | ||||||||||||
Total securities held to maturity | $ | 172,277 | $ | 441 | $ | (873 | ) | $ | 171,845 |
Available for Sale | Held to Maturity | |||||||||||||||
(dollars in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
Due in 1 year or less | $ | 675 | $ | 677 | $ | - | $ | - | ||||||||
After 1 year to 5 years | 12,096 | 12,260 | 4,651 | 4,640 | ||||||||||||
After 5 years to 10 years | 53,126 | 51,671 | 24,837 | 25,100 | ||||||||||||
After 10 years | 23,494 | 22,695 | - | - | ||||||||||||
Collateralized mortgage obligations | 199,622 | 200,396 | 155,098 | 157,275 | ||||||||||||
Agency mortgage-backed securities | 11,632 | 11,686 | 35,884 | 36,232 | ||||||||||||
Total | $ | 300,645 | $ | 299,385 | $ | 220,470 | $ | 223,247 |
Available for Sale | Held to Maturity | |||||||||||||||
(dollars in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
Due in 1 year or less | $ | 6,844 | $ | 6,861 | $ | - | $ | - | ||||||||
After 1 year to 5 years | 16,065 | 15,694 | 4,828 | 4,817 | ||||||||||||
After 5 years to 10 years | 45,375 | 44,290 | 12,843 | 13,088 | ||||||||||||
After 10 years | 25,118 | 24,159 | - | - | ||||||||||||
Collateralized mortgage obligations | 150,708 | 152,866 | 164,150 | 167,638 | ||||||||||||
Agency mortgage-backed securities | 9,357 | 9,419 | 17,253 | 17,643 | ||||||||||||
Total | $ | 253,467 | $ | 253,289 | $ | 199,074 | $ | 203,186 |
Three Months Ended September 30, | ||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Beginning Balance, January 1st | $ | 930 | $ | 3,966 | ||||||||||||
Beginning Balance, July 1st | $ | 935 | $ | 1,400 | ||||||||||||
Additional credit-related impairment loss on securities for which an | ||||||||||||||||
other-than-temporary impairment was previously recognized | 5 | 3 | 2 | - | ||||||||||||
Reductions for securities paid off during the period | - | - | - | - | ||||||||||||
Reductions for securities sold during the period | - | (2,569 | ) | - | (470 | ) | ||||||||||
Reductions for securities for which the amount previously recognized in other | ||||||||||||||||
comprehensive income was recognized in earnings because the Company | ||||||||||||||||
intends to sell the security | - | - | - | - | ||||||||||||
Ending Balance, June 30th | $ | 935 | $ | 1,400 | ||||||||||||
Ending Balance, September 30th | $ | 937 | $ | 930 |
Nine Months Ended September 30, | ||||||||
(dollars in thousands) | 2016 | 2015 | ||||||
Beginning Balance, January 1st | $ | 930 | $ | 3,966 | ||||
Additional credit-related impairment loss on securities for which an | ||||||||
other-than-temporary impairment was previously recognized | 7 | 3 | ||||||
Reductions for securities paid off during the period | - | - | ||||||
Reductions for securities sold during the period | - | (3,039 | ) | |||||
Reductions for securities for which the amount previously recognized in other | ||||||||
comprehensive income was recognized in earnings because the Company | ||||||||
intends to sell the security | - | - | ||||||
Ending Balance, September 30th | $ | 937 | $ | 930 |
At June 30, 2016 | At September 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | $ | 11,320 | $ | 93 | $ | 9,728 | $ | 41 | $ | 21,048 | $ | 134 | $ | 76,185 | $ | 573 | $ | 8,199 | $ | 67 | $ | 84,384 | $ | 640 | ||||||||||||||||||||||||
Agency mortgage-backed securities | - | - | 3,604 | 5 | 3,604 | 5 | 2,584 | 14 | 3,432 | 5 | 6,016 | 19 | ||||||||||||||||||||||||||||||||||||
Municipal securities | 486 | 8 | - | - | 486 | 8 | ||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | 33,682 | 1,318 | 5,804 | 191 | 39,486 | 1,509 | 28,859 | 1,142 | 10,796 | 199 | 39,655 | 1,341 | ||||||||||||||||||||||||||||||||||||
Asset backed securities | 6,463 | 491 | 9,600 | 271 | 16,063 | 762 | - | - | 15,717 | 466 | 15,717 | 466 | ||||||||||||||||||||||||||||||||||||
Trust preferred securities | - | - | 1,755 | 1,310 | 1,755 | 1,310 | - | - | 1,691 | 1,372 | 1,691 | 1,372 | ||||||||||||||||||||||||||||||||||||
Total Available for Sale | $ | 51,465 | $ | 1,902 | $ | 30,491 | $ | 1,818 | $ | 81,956 | $ | 3,720 | $ | 108,114 | $ | 1,737 | $ | 39,835 | $ | 2,109 | $ | 147,949 | $ | 3,846 |
At June 30, 2016 | ||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||
(dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
U.S. Government agencies | $ | - | $ | - | $ | 3,798 | $ | 10 | $ | 3,798 | $ | 10 | ||||||||||||
Collateralized mortgage obligations | 20,383 | 114 | - | - | 20,383 | 114 | ||||||||||||||||||
Total Held to Maturity | $ | 20,383 | $ | 114 | $ | 3,798 | $ | 10 | $ | 24,181 | $ | 124 |
At December 31, 2015 | ||||||||||||||||||||||||
Less than 12 months | 12 months or more | �� | Total | |||||||||||||||||||||
(dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
Collateralized mortgage obligations | $ | 116,161 | $ | 3,173 | $ | - | $ | - | $ | 116,161 | $ | 3,173 | ||||||||||||
Agency mortgage-backed securities | 2,389 | 14 | 5,502 | 64 | 7,891 | 78 | ||||||||||||||||||
Municipal securities | 886 | 15 | 1,814 | 17 | 2,700 | 32 | ||||||||||||||||||
Corporate bonds | 9,583 | 258 | 2,952 | 42 | 12,535 | 300 | ||||||||||||||||||
Asset backed securities | 17,005 | 626 | - | - | 17,005 | 626 | ||||||||||||||||||
Trust preferred securities | - | - | 1,883 | 1,187 | 1,883 | 1,187 | ||||||||||||||||||
Total Available for Sale | $ | 146,024 | $ | 4,086 | $ | 12,151 | $ | 1,310 | $ | 158,175 | $ | 5,396 |
At December 31, 2015 | At September 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||||||
U.S. Government agencies | $ | 11,954 | $ | 72 | $ | - | $ | - | $ | 11,954 | $ | 72 | $ | 7,067 | $ | 47 | $ | 3,621 | $ | 11 | $ | 10,688 | $ | 58 | ||||||||||||||||||||||||
Collateralized mortgage obligations | 68,888 | 732 | 15,956 | 48 | 84,844 | 780 | 26,469 | 219 | - | - | 26,469 | 219 | ||||||||||||||||||||||||||||||||||||
Agency mortgage-backed securities | 7,711 | 21 | - | - | 7,711 | 21 | ||||||||||||||||||||||||||||||||||||||||||
Total Held to Maturity | $ | 88,553 | $ | 825 | $ | 15,956 | $ | 48 | $ | 104,509 | $ | 873 | $ | 33,536 | $ | 266 | $ | 3,621 | $ | 11 | $ | 37,157 | $ | 277 |
At December 31, 2015 | ||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||
(dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
Collateralized mortgage obligations | $ | 116,161 | $ | 3,173 | $ | - | $ | - | $ | 116,161 | $ | 3,173 | ||||||||||||
Agency mortgage-backed securities | 2,389 | 14 | 5,502 | 64 | 7,891 | 78 | ||||||||||||||||||
Municipal securities | 886 | 15 | 1,814 | 17 | 2,700 | 32 | ||||||||||||||||||
Corporate bonds | 9,583 | 258 | 2,952 | 42 | 12,535 | 300 | ||||||||||||||||||
Asset backed securities | 17,005 | 626 | - | - | 17,005 | 626 | ||||||||||||||||||
Trust preferred securities | - | - | 1,883 | 1,187 | 1,883 | 1,187 | ||||||||||||||||||
Total Available for Sale | $ | 146,024 | $ | 4,086 | $ | 12,151 | $ | 1,310 | $ | 158,175 | $ | 5,396 |
At December 31, 2015 | ||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||
(dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
U.S. Government agencies | $ | 11,954 | $ | 72 | $ | - | $ | - | $ | 11,954 | $ | 72 | ||||||||||||
Collateralized mortgage obligations | 68,888 | 732 | 15,956 | 48 | 84,844 | 780 | ||||||||||||||||||
Agency mortgage-backed securities | 7,711 | 21 | - | - | 7,711 | 21 | ||||||||||||||||||
Total Held to Maturity | $ | 88,553 | $ | 825 | $ | 15,956 | $ | 48 | $ | 104,509 | $ | 873 |
(dollars in thousands) | Class / Tranche | Amortized Cost | Fair Value | Unrealized Losses | Lowest Credit Rating Assigned | Number of Banks Currently Performing | Deferrals / Defaults as % of Current Balance | Conditional Default Rates for 2015 and beyond | Cumulative OTTI Life to Date | Class / Tranche | Amortized Cost | Fair Value | Unrealized Losses | Lowest Credit Rating Assigned | Number of Banks Currently Performing | Deferrals / Defaults as % of Current Balance | Conditional Default Rates for 2016 and beyond | Cumulative OTTI Life to Date | |||||||||||||||||||||||||||||||||||||||||||||||||
TPREF Funding II | Class B Notes | $ | 727 | $ | 389 | $ | (338 | ) | C | 19 | 37 | % | 0.40 | % | $ | 272 | Class B Notes | $ | 725 | $ | 377 | $ | (348 | ) | C | 19 | 37 | % | 0.42 | % | $ | 274 | |||||||||||||||||||||||||||||||||||
TPREF Funding III | Class B2 Notes | 1,518 | 838 | (680 | ) | C | 15 | 32 | 0.40 | 483 | Class B2 Notes | 1,518 | 804 | (714 | ) | C | 15 | 32 | 0.43 | 483 | |||||||||||||||||||||||||||||||||||||||||||||||
ALESCO Preferred Funding V | Class C1 Notes | 820 | 528 | (292 | ) | C | 42 | 18 | 0.40 | 180 | Class C1 Notes | 820 | 510 | (310 | ) | C | 42 | 14 | 0.41 | 180 | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 3,065 | $ | 1,755 | $ | (1,310 | ) | 76 | 29 | % | $ | 935 | $ | 3,063 | $ | 1,691 | $ | (1,372 | ) | 76 | 27 | % | $ | 937 |
(dollars in thousands) | June 30, 2016 | December 31, 2015 | September 30, 2016 | December 31, 2015 | ||||||||||||
Commercial real estate | $ | 369,784 | $ | 349,726 | $ | 376,466 | $ | 349,726 | ||||||||
Construction and land development | 40,462 | 46,547 | 48,983 | 46,547 | ||||||||||||
Commercial and industrial | 199,149 | 181,850 | 186,126 | 181,850 | ||||||||||||
Owner occupied real estate | 265,245 | 246,398 | 268,435 | 246,398 | ||||||||||||
Consumer and other | 53,213 | 48,126 | 58,580 | 48,126 | ||||||||||||
Residential mortgage | 2,338 | 2,380 | 6,909 | 2,380 | ||||||||||||
Total loans receivable | 930,191 | 875,027 | 945,499 | 875,027 | ||||||||||||
Deferred costs (fees) | (437 | ) | (258 | ) | 42 | (258 | ) | |||||||||
Allowance for loan losses | (8,761 | ) | (8,703 | ) | (9,453 | ) | (8,703 | ) | ||||||||
Net loans receivable | $ | 920,993 | $ | 866,066 | $ | 936,088 | $ | 866,066 |
June 30, 2016 | December 31, 2015 | September 30, 2016 | December 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Recorded Investment | Unpaid Principal Balance | Related Allowance | Recorded Investment | Unpaid Principal Balance | Related Allowance | Recorded Investment | Unpaid Principal Balance | Related Allowance | Recorded Investment | Unpaid Principal Balance | Related Allowance | ||||||||||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 12,333 | $ | 12,334 | $ | - | $ | 11,692 | $ | 11,730 | $ | - | $ | 12,305 | $ | 12,307 | $ | - | $ | 11,692 | $ | 11,730 | $ | - | ||||||||||||||||||||||||
Construction and land development | 56 | 2,050 | - | 117 | 2,208 | - | - | - | - | 117 | 2,208 | - | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | 1,675 | 2,804 | - | 2,381 | 3,683 | - | 1,515 | 2,648 | - | 2,381 | 3,683 | - | ||||||||||||||||||||||||||||||||||||
Owner occupied real estate | 950 | 963 | - | 507 | 507 | - | 672 | 685 | - | 507 | 507 | - | ||||||||||||||||||||||||||||||||||||
Consumer and other | 856 | 1,156 | - | 800 | 1,084 | - | 1,092 | 1,400 | - | 800 | 1,084 | - | ||||||||||||||||||||||||||||||||||||
Total | $ | 15,870 | $ | 19,307 | $ | - | $ | 15,497 | $ | 19,212 | $ | - | $ | 15,584 | $ | 17,040 | $ | - | $ | 15,497 | $ | 19,212 | $ | - |
With an allowance recorded: | ||||||||||||||||||||||||
Commercial real estate | $ | 7,193 | $ | 7,194 | $ | 1,317 | $ | 511 | $ | 511 | $ | 47 | ||||||||||||
Construction and land development | 4 | 101 | 4 | - | - | - | ||||||||||||||||||
Commercial and industrial | 3,618 | 6,285 | 1,677 | 3,112 | 5,779 | 1,111 | ||||||||||||||||||
Owner occupied real estate | 1,298 | 1,298 | 304 | 2,862 | 2,876 | 1,059 | ||||||||||||||||||
Consumer and other | 292 | 292 | 79 | 147 | 147 | 21 | ||||||||||||||||||
Total | $ | 12,405 | $ | 15,170 | $ | 3,381 | $ | 6,632 | $ | 9,313 | $ | 2,238 |
Total: | ||||||||||||||||||||||||
Commercial real estate | $ | 19,526 | $ | 19,528 | $ | 1,317 | $ | 12,203 | $ | 12,241 | $ | 47 | ||||||||||||
Construction and land development | 60 | 2,151 | 4 | 117 | 2,208 | - | ||||||||||||||||||
Commercial and industrial | 5,293 | 9,089 | 1,677 | 5,493 | 9,462 | 1,111 | ||||||||||||||||||
Owner occupied real estate | 2,248 | 2,261 | 304 | 3,369 | 3,383 | 1,059 | ||||||||||||||||||
Consumer and other | 1,148 | 1,448 | 79 | 947 | 1,231 | 21 | ||||||||||||||||||
Total | $ | 28,275 | $ | 34,477 | $ | 3,381 | $ | 22,129 | $ | 28,525 | $ | 2,238 |
With an allowance recorded: | ||||||||||||||||||||||||
Commercial real estate | $ | 7,165 | $ | 7,179 | $ | 1,290 | $ | 511 | $ | 511 | $ | 47 | ||||||||||||
Construction and land development | 56 | 2,050 | 56 | - | - | - | ||||||||||||||||||
Commercial and industrial | 3,719 | 6,385 | 1,799 | 3,112 | 5,779 | 1,111 | ||||||||||||||||||
Owner occupied real estate | 1,859 | 1,860 | 544 | 2,862 | 2,876 | 1,059 | ||||||||||||||||||
Consumer and other | 292 | 293 | 71 | 147 | 147 | 21 | ||||||||||||||||||
Total | $ | 13,091 | $ | 17,767 | $ | 3,760 | $ | 6,632 | $ | 9,313 | $ | 2,238 |
Total: | ||||||||||||||||||||||||
Commercial real estate | $ | 19.470 | $ | 19,486 | $ | 1,290 | $ | 12,203 | $ | 12,241 | $ | 47 | ||||||||||||
Construction and land development | 56 | 2,050 | 56 | 117 | 2,208 | - | ||||||||||||||||||
Commercial and industrial | 5,234 | 9,033 | 1,799 | 5,493 | 9,462 | 1,111 | ||||||||||||||||||
Owner occupied real estate | 2,531 | 2,545 | 544 | 3,369 | 3,383 | 1,059 | ||||||||||||||||||
Consumer and other | 1,384 | 1,693 | 71 | 947 | 1,231 | 21 | ||||||||||||||||||
Total | $ | 28,675 | $ | 34,807 | $ | 3,760 | $ | 22,129 | $ | 28,525 | $ | 2,238 |
Three Months Ended June 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||||||
(dollars in thousands) | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | 12,085 | $ | 67 | $ | 13,432 | $ | (21 | ) | $ | 12,188 | $ | 65 | $ | 13,923 | $ | 73 | |||||||||||||||
Construction and land development | 77 | - | 248 | 1 | 22 | - | 328 | 2 | ||||||||||||||||||||||||
Commercial and industrial | 1,782 | 11 | 3,992 | 27 | 1,611 | 9 | 2,459 | 16 | ||||||||||||||||||||||||
Owner occupied real estate | 793 | 2 | 957 | 3 | 665 | 3 | 589 | 1 | ||||||||||||||||||||||||
Consumer and other | 847 | 3 | 713 | 3 | 1,027 | 5 | 754 | 3 | ||||||||||||||||||||||||
Total | $ | 15,584 | $ | 83 | $ | 19,342 | $ | 13 | $ | 15,513 | $ | 82 | $ | 18,053 | $ | 95 |
With an allowance recorded: | ||||||||||||||||
Commercial real estate | $ | 4,966 | $ | 16 | $ | 4,864 | $ | 3 | ||||||||
Construction and land development | 2 | - | 116 | - | ||||||||||||
Commercial and industrial | 3,450 | 19 | 2,084 | - | ||||||||||||
Owner occupied real estate | 1,808 | 8 | 4,009 | 30 | ||||||||||||
Consumer and other | 265 | 3 | - | - | ||||||||||||
Total | $ | 10,491 | $ | 46 | $ | 11,073 | $ | 33 |
Total: | ||||||||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | 17,051 | $ | 83 | $ | 18,296 | $ | (18 | ) | $ | 6,058 | $ | 19 | $ | 2,479 | $ | 3 | |||||||||||||||
Construction and land development | 79 | - | 364 | 1 | 43 | - | 62 | - | ||||||||||||||||||||||||
Commercial and industrial | 5,232 | 30 | 6,076 | 27 | 3,607 | 18 | 3,776 | 12 | ||||||||||||||||||||||||
Owner occupied real estate | 2,601 | 10 | 4,966 | 33 | 1,977 | 9 | 3,293 | 27 | ||||||||||||||||||||||||
Consumer and other | 1,112 | 6 | 713 | 3 | 278 | 2 | 111 | 1 | ||||||||||||||||||||||||
Total | $ | 26,075 | $ | 129 | $ | 30,415 | $ | 46 | $ | 11,963 | $ | 48 | $ | 9,721 | $ | 43 |
Total: | ||||||||||||||||
Commercial real estate | $ | 18,246 | $ | 84 | $ | 16,402 | $ | 76 | ||||||||
Construction and land development | 65 | - | 390 | 2 | ||||||||||||
Commercial and industrial | 5,218 | 27 | 6,235 | 28 | ||||||||||||
Owner occupied real estate | 2,642 | 12 | 3,882 | 28 | ||||||||||||
Consumer and other | 1,305 | 7 | 865 | 4 | ||||||||||||
Total | $ | 27,476 | $ | 130 | $ | 27,774 | $ | 138 |
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||||||
(dollars in thousands) | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | 11,837 | $ | 132 | $ | 12,648 | $ | 141 | $ | 11,954 | $ | 197 | $ | 13,073 | $ | 214 | ||||||||||||||||
Construction and land development | 97 | - | 178 | 1 | 72 | - | 228 | 3 | ||||||||||||||||||||||||
Commercial and industrial | 1,890 | 21 | 3,923 | 48 | 1,797 | 30 | 3,435 | 64 | ||||||||||||||||||||||||
Owner occupied real estate | 638 | 3 | 829 | 4 | 647 | 6 | 749 | 5 | ||||||||||||||||||||||||
Consumer and other | 838 | 6 | 607 | 4 | 901 | 11 | 656 | 7 | ||||||||||||||||||||||||
Total | $ | 15,300 | $ | 162 | $ | 18,185 | $ | 198 | $ | 15,371 | $ | 244 | $ | 18,141 | $ | 293 |
With an allowance recorded: | ||||||||||||||||
Commercial real estate | $ | 2,737 | $ | 24 | $ | 8,965 | $ | 3 | ||||||||
Construction and land development | 1 | - | 137 | - | ||||||||||||
Commercial and industrial | 3,280 | 38 | 1,796 | - | ||||||||||||
Owner occupied real estate | 2,319 | 14 | 4,109 | 63 | ||||||||||||
Consumer and other | 239 | 5 | - | - | ||||||||||||
Total | $ | 8,576 | $ | 81 | $ | 15,007 | $ | 66 |
Total: | ||||||||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | 14,574 | $ | 156 | $ | 21,613 | $ | 144 | $ | 3,844 | $ | 43 | $ | 6,803 | $ | 6 | ||||||||||||||||
Construction and land development | 98 | - | 315 | 1 | 15 | - | 112 | - | ||||||||||||||||||||||||
Commercial and industrial | 5,170 | 59 | 5,719 | 48 | 3,389 | 56 | 2,456 | 12 | ||||||||||||||||||||||||
Owner occupied real estate | 2,957 | 17 | 4,938 | 67 | 2,205 | 23 | 3,837 | 90 | ||||||||||||||||||||||||
Consumer and other | 1,077 | 11 | 607 | 4 | 252 | 7 | 37 | 1 | ||||||||||||||||||||||||
Total | $ | 23,876 | $ | 243 | $ | 33,192 | $ | 264 | $ | 9,705 | $ | 129 | $ | 13,245 | $ | 109 |
Total: | ||||||||||||||||
Commercial real estate | $ | 15,798 | $ | 240 | $ | 19,876 | $ | 220 | ||||||||
Construction and land development | 87 | - | 340 | 3 | ||||||||||||
Commercial and industrial | 5,186 | 86 | 5,891 | 76 | ||||||||||||
Owner occupied real estate | 2,852 | 29 | 4,586 | 95 | ||||||||||||
Consumer and other | 1,153 | 18 | 693 | 8 | ||||||||||||
Total | $ | 25,076 | $ | 373 | $ | 31,386 | $ | 402 |
(dollars in thousands) | Commercial Real Estate | Construction and Land Development | Commercial and Industrial | Owner Occupied Real Estate | Consumer and Other | Residential Mortgage | Unallocated | Total | ||||||||||||||||||||||||
Three months ended June 30, 2016 | ||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||
Beginning balance: | $ | 2,045 | $ | 414 | $ | 2,942 | $ | 2,091 | $ | 312 | $ | 11 | $ | 1,214 | $ | 9,029 | ||||||||||||||||
Charge-offs | - | - | - | (926 | ) | - | - | - | (926 | ) | ||||||||||||||||||||||
Recoveries | 6 | - | 2 | - | - | - | - | 8 | ||||||||||||||||||||||||
Provisions (credits) | 1,242 | (49 | ) | 192 | 201 | 12 | - | (948 | ) | 650 | ||||||||||||||||||||||
Ending balance | $ | 3,293 | $ | 365 | $ | 3,136 | $ | 1,366 | $ | 324 | $ | 11 | $ | 266 | $ | 8,761 | ||||||||||||||||
Three months ended June 30, 2015 | ||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||
Beginning balance: | $ | 6,263 | $ | 255 | $ | 1,924 | $ | 1,578 | $ | 230 | $ | 2 | $ | 692 | $ | 10,944 | ||||||||||||||||
Charge-offs | (2,524 | ) | - | (24 | ) | - | - | - | - | (2,548 | ) | |||||||||||||||||||||
Recoveries | - | - | 1 | - | 1 | - | - | 2 | ||||||||||||||||||||||||
Provisions (credits) | (1,032 | ) | 56 | 922 | 209 | 20 | - | (175 | ) | - | ||||||||||||||||||||||
Ending balance | $ | 2,707 | $ | 311 | $ | 2,823 | $ | 1,787 | $ | 251 | $ | 2 | $ | 517 | $ | 8,398 | ||||||||||||||||
(dollars in thousands) | Commercial Real Estate | Construction and Land Development | Commercial and Industrial | Owner Occupied Real Estate | Consumer and Other | Residential Mortgage | Unallocated | Total | Commercial Real Estate | Construction and Land Development | Commercial and Industrial | Owner Occupied Real Estate | Consumer and Other | Residential Mortgage | Unallocated | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2016 | Three months ended September 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | Allowance for loan losses: | Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance: | $ | 2,393 | $ | 338 | $ | 2,932 | $ | 2,030 | $ | 295 | $ | 14 | $ | 701 | $ | 8,703 | $ | 3,293 | $ | 365 | $ | 3,136 | $ | 1,366 | $ | 324 | $ | 11 | $ | 266 | $ | 8,761 | ||||||||||||||||||||||||||||||||
Charge-offs | - | - | (18 | ) | (954 | ) | - | - | - | (972 | ) | - | (3 | ) | - | - | - | - | - | (3 | ) | |||||||||||||||||||||||||||||||||||||||||||
Recoveries | 6 | - | 74 | - | - | - | - | 80 | - | - | 88 | - | - | - | - | 88 | ||||||||||||||||||||||||||||||||||||||||||||||||
Provisions (credits) | 894 | 27 | 148 | 290 | 29 | (3 | ) | (435 | ) | 950 | 9 | 137 | (79 | ) | 251 | 16 | 31 | 242 | 607 | |||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 3,293 | $ | 365 | $ | 3,136 | $ | 1,366 | $ | 324 | $ | 11 | $ | 266 | $ | 8,761 | $ | 3,302 | $ | 499 | $ | 3,145 | $ | 1,617 | $ | 340 | $ | 42 | $ | 508 | $ | 9,453 | ||||||||||||||||||||||||||||||||
Six months ended June 30, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance: | $ | 6,828 | $ | 917 | $ | 1,579 | $ | 1,638 | $ | 234 | $ | 2 | $ | 338 | $ | 11,536 | ||||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | (2,623 | ) | (222 | ) | (325 | ) | (55 | ) | - | - | - | (3,225 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 4 | 5 | 46 | - | 32 | - | - | 87 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provisions (credits) | (1,502 | ) | (389 | ) | 1,523 | 204 | (15 | ) | - | 179 | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 2,707 | $ | 311 | $ | 2,823 | $ | 1,787 | $ | 251 | $ | 2 | $ | 517 | $ | 8,398 |
Three months ended September 30, 2015 | |||||||||||||||||
Allowance for loan losses: |
Beginning balance: | $ | 2,707 | $ | 311 | $ | 2,823 | $ | 1,787 | $ | 251 | $ | 2 | $ | 517 | $ | 8,398 | ||||||||||||||||
Charge-offs | - | - | - | (78 | ) | - | - | - | (78 | ) | ||||||||||||||||||||||
Recoveries | - | - | 2 | - | 1 | - | - | 3 | ||||||||||||||||||||||||
Provisions (credits) | (79 | ) | 26 | 313 | 19 | 28 | 12 | (319 | ) | - | ||||||||||||||||||||||
Ending balance | $ | 2,628 | $ | 337 | $ | 3,138 | $ | 1,728 | $ | 280 | $ | 14 | $ | 198 | $ | 8,323 | ||||||||||||||||
(dollars in thousands) | Commercial Real Estate | Construction and Land Development | Commercial and Industrial | Owner Occupied Real Estate | Consumer and Other | Residential Mortgage | Unallocated | Total | ||||||||||||||||||||||||
Nine months ended September 30, 2016 | ||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||
Beginning balance: | $ | 2,393 | $ | 338 | $ | 2,932 | $ | 2,030 | $ | 295 | $ | 14 | $ | 701 | $ | 8,703 | ||||||||||||||||
Charge-offs | - | (3 | ) | (18 | ) | (954 | ) | - | - | - | (975 | ) | ||||||||||||||||||||
Recoveries | 6 | - | 162 | - | - | - | - | 168 | ||||||||||||||||||||||||
Provisions (credits) | 903 | 164 | 69 | 541 | 45 | 28 | (193 | ) | 1,557 | |||||||||||||||||||||||
Ending balance | $ | 3,302 | $ | 499 | $ | 3,145 | $ | 1,617 | $ | 340 | $ | 42 | $ | 508 | $ | 9,453 |
Nine months ended September 30, 2015 | ||||||||
Allowance for loan losses: | ||||||||
Beginning Balance: | $ | 6,828 | $ | 917 | $ | 1,579 | $ | 1,638 | $ | 234 | $ | 2 | $ | 338 | $ | 11,536 | ||||||||||||||||
Charge-offs | (2,623 | ) | (222 | ) | (325 | ) | (133 | ) | - | - | - | (3,303 | ) | |||||||||||||||||||
Recoveries | 4 | 5 | 48 | - | 33 | - | - | 90 | ||||||||||||||||||||||||
Provisions (credits) | (1,581 | ) | (363 | ) | 1,836 | 223 | 13 | 12 | (140 | ) | - | |||||||||||||||||||||
Ending balance | $ | 2,628 | $ | 337 | $ | 3,138 | $ | 1,728 | $ | 280 | $ | 14 | $ | 198 | $ | 8,323 |
(dollars in thousands) | Commercial Real Estate | Construction and Land Development | Commercial and Industrial | Owner Occupied Real Estate | Consumer and Other | Residential Mortgage | Unallocated | Total | Commercial Real Estate | Construction and Land Development | Commercial and Industrial | Owner Occupied Real Estate | Consumer and Other | Residential Mortgage | Unallocated | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,317 | $ | 4 | $ | 1,677 | $ | 304 | $ | 79 | $ | - | $ | - | $ | 3,381 | $ | 1,290 | $ | 56 | $ | 1,799 | $ | 544 | $ | 71 | $ | - | $ | - | $ | 3,760 | ||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | 1,976 | 361 | 1,459 | 1,062 | 245 | 11 | 266 | 5,380 | 2,012 | 443 | 1,346 | 1,073 | 269 | 42 | 508 | 5,693 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total allowance for loan losses | $ | 3,293 | $ | 365 | $ | 3,136 | $ | 1,366 | $ | 324 | $ | 11 | $ | 266 | $ | 8,761 | $ | 3,302 | $ | 499 | $ | 3,145 | $ | 1,617 | $ | 340 | $ | 42 | $ | 508 | $ | 9,453 | ||||||||||||||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans evaluated individually | $ | 19,526 | $ | 60 | $ | 5,293 | $ | 2,248 | $ | 1,148 | $ | - | $ | - | $ | 28,275 | $ | 19,470 | $ | 56 | $ | 5,234 | $ | 2,531 | $ | 1,384 | $ | - | $ | - | $ | 28,675 | ||||||||||||||||||||||||||||||||
Loans evaluated collectively | 350,258 | 40,402 | 193,856 | 262,997 | 52,065 | 2,338 | - | 901,916 | 356,996 | 48,927 | 180,892 | 265,904 | 57,196 | 6,909 | - | 916,824 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total loans receivable | $ | 369,784 | $ | 40,462 | $ | 199,149 | $ | 265,245 | $ | 53,213 | $ | 2,338 | $ | - | $ | 930,191 | $ | 376,466 | $ | 48,983 | $ | 186,126 | $ | 268,435 | $ | 58,580 | $ | 6,909 | $ | - | $ | 945,499 |
(dollars in thousands) | Commercial Real Estate | Construction and Land Development | Commercial and Industrial | Owner Occupied Real Estate | Consumer and Other | Residential Mortgage | Unallocated | Total | ||||||||||||||||||||||||
December 31, 2015 | ||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 47 | $ | - | $ | 1,111 | $ | 1,059 | $ | 21 | $ | - | $ | - | $ | 2,238 | ||||||||||||||||
Collectively evaluated for impairment | 2,346 | 338 | 1,821 | 971 | 274 | 14 | 701 | 6,465 | ||||||||||||||||||||||||
Total allowance for loan losses | $ | 2,393 | $ | 338 | $ | 2,932 | $ | 2,030 | $ | 295 | $ | 14 | $ | 701 | $ | 8,703 | ||||||||||||||||
Loans receivable: | ||||||||||||||||||||||||||||||||
Loans evaluated individually | $ | 12,203 | $ | 117 | $ | 5,493 | $ | 3,369 | $ | 947 | $ | - | $ | - | $ | 22,129 | ||||||||||||||||
Loans evaluated collectively | 337,523 | 46,430 | 176,357 | 243,029 | 47,179 | 2,380 | - | 852,898 | ||||||||||||||||||||||||
Total loans receivable | $ | 349,726 | $ | 46,547 | $ | 181,850 | $ | 246,398 | $ | 48,126 | $ | 2,380 | $ | - | $ | 875,027 |
(dollars in thousands) | 30-59 Days Past Due | 60-89 Days Past Due | Greater than 90 Days | Total Past Due | Current | Total Loans Receivable | Loans Receivable > 90 Days and Accruing | ||||||||
At September 30, 2016 | |||||||||||||||
Commercial real estate | $ | - | $ | 12 | $ | 13,280 | $ | 13,292 | $ | 363,174 | $ | 376,466 | $ | - | |
Construction and land development | - | - | 56 | 56 | 48,927 | 48,983 | - | ||||||||
Commercial and industrial | - | 747 | 3,149 | 3,896 | 182,230 | 186,126 | - | ||||||||
Owner occupied real estate | - | - | 1,874 | 1,874 | 266,561 | 268,435 | - | ||||||||
Consumer and other | - | 22 | 995 | 1,017 | 57,563 | 58,580 | 16 | ||||||||
Residential mortgage | - | - | 137 | 137 | 6,772 | 6,909 | 137 | ||||||||
Total | $ | - | $ | 781 | $ | 19,491 | $ | 20,272 | $ | 925,227 | $ | 945,499 | $ | 153 | |
(dollars in thousands) | 30-59 Days Past Due | 60-89 Days Past Due | Greater than 90 Days | Total Past Due | Current | Total Loans Receivable | Loans Receivable > 90 Days and Accruing | ||||||||
At December 31, 2015 | |||||||||||||||
Commercial real estate | $ | - | $ | 7,657 | $ | 5,913 | $ | 13,570 | $ | 336,156 | $ | 349,726 | $ | - | |
Construction and land development | - | - | 117 | 117 | 46,430 | 46,547 | - | ||||||||
Commercial and industrial | 1,661 | 997 | 3,156 | 5,814 | 176,036 | 181,850 | - | ||||||||
Owner occupied real estate | 800 | 469 | 2,894 | 4,163 | 242,235 | 246,398 | - | ||||||||
Consumer and other | 285 | 192 | 542 | 1,019 | 47,107 | 48,126 | - | ||||||||
Residential mortgage | 132 | - | - | 132 | 2,248 | 2,380 | - | ||||||||
Total | $ | 2,878 | $ | 9,315 | $ | 12,622 | $ | 24,815 | $ | 850,212 | $ | 875,027 | $ | - |
(dollars in thousands) | 30-59 Days Past Due | 60-89 Days Past Due | Greater than 90 Days | Total Past Due | Current | Total Loans Receivable | Loans Receivable > 90 Days and Accruing | |||||||||||||||||||||
At June 30, 2016 | ||||||||||||||||||||||||||||
Commercial real estate | $ | - | $ | 15 | $ | 13,303 | $ | 13,318 | $ | 356,466 | $ | 369,784 | $ | - | ||||||||||||||
Construction and land development | - | - | 60 | 60 | 40,402 | 40,462 | - | |||||||||||||||||||||
Commercial and industrial | - | 663 | 3,154 | 3,817 | 195,332 | 199,149 | - | |||||||||||||||||||||
Owner occupied real estate | - | 46 | 1,582 | 1,628 | 263,617 | 265,245 | - | |||||||||||||||||||||
Consumer and other | - | 384 | 743 | 1,127 | 52,086 | 53,213 | - | |||||||||||||||||||||
Residential mortgage | - | - | - | - | 2,338 | 2,338 | - | |||||||||||||||||||||
Total | $ | - | $ | 1,108 | $ | 18,842 | $ | 19,950 | $ | 910,241 | $ | 930,191 | $ | - | ||||||||||||||
(dollars in thousands) | 30-59 Days Past Due | 60-89 Days Past Due | Greater than 90 Days | Total Past Due | Current | Total Loans Receivable | Loans Receivable > 90 Days and Accruing | |||||||||||||||||||||
At December 31, 2015 | ||||||||||||||||||||||||||||
Commercial real estate | $ | - | $ | 7,657 | $ | 5,913 | $ | 13,570 | $ | 336,156 | $ | 349,726 | $ | - | ||||||||||||||
Construction and land development | - | - | 117 | 117 | 46,430 | 46,547 | - | |||||||||||||||||||||
Commercial and industrial | 1,661 | 997 | 3,156 | 5,814 | 176,036 | 181,850 | - | |||||||||||||||||||||
Owner occupied real estate | 800 | 469 | 2,894 | 4,163 | 242,235 | 246,398 | - | |||||||||||||||||||||
Consumer and other | 285 | 192 | 542 | 1,019 | 47,107 | 48,126 | - | |||||||||||||||||||||
Residential mortgage | 132 | - | - | 132 | 2,248 | 2,380 | - | |||||||||||||||||||||
Total | $ | 2,878 | $ | 9,315 | $ | 12,622 | $ | 24,815 | $ | 850,212 | $ | 875,027 | $ | - |
(dollars in thousands) | Pass | Special Mention | Substandard | Doubtful | Total | Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||||||||||||||||||||||
At June 30, 2016: | ||||||||||||||||||||||||||||||||||||||||
At September 30, 2016: | ||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 355,084 | $ | 898 | $ | 13,802 | $ | - | $ | 369,784 | $ | 361,806 | $ | 887 | $ | 13,773 | $ | - | $ | 376,466 | ||||||||||||||||||||
Construction and land development | 40,402 | - | 60 | - | 40,462 | 48,927 | - | 56 | - | 48,983 | ||||||||||||||||||||||||||||||
Commercial and industrial | 193,796 | 60 | 3,864 | 1,429 | 199,149 | 180,836 | 56 | 3,805 | 1,429 | 186,126 | ||||||||||||||||||||||||||||||
Owner occupied real estate | 262,997 | - | 2,248 | - | 265,245 | 265,904 | - | 2,531 | - | 268,435 | ||||||||||||||||||||||||||||||
Consumer and other | 52,065 | - | 1,148 | - | 53,213 | 57,196 | - | 1,384 | - | 58,580 | ||||||||||||||||||||||||||||||
Residential mortgage | 2,338 | - | - | - | 2,338 | 6,909 | - | - | - | 6,909 | ||||||||||||||||||||||||||||||
Total | $ | 906,682 | $ | 958 | $ | 21,122 | $ | 1,429 | $ | 930,191 | $ | 921,578 | $ | 943 | $ | 21,549 | $ | 1,429 | $ | 945,499 |
(dollars in thousands) | Pass | Special Mention | Substandard | Doubtful | Total | |||||||||||||||
At December 31, 2015: | ||||||||||||||||||||
Commercial real estate | $ | 329,567 | $ | 7,956 | $ | 12,203 | $ | - | $ | 349,726 | ||||||||||
Construction and land development | 46,430 | - | 117 | - | 46,547 | |||||||||||||||
Commercial and industrial | 176,132 | 225 | 4,064 | 1,429 | 181,850 | |||||||||||||||
Owner occupied real estate | 242,560 | 469 | 3,369 | - | 246,398 | |||||||||||||||
Consumer and other | 47,104 | 75 | 947 | - | 48,126 | |||||||||||||||
Residential mortgage | 2,380 | - | - | - | 2,380 | |||||||||||||||
Total | $ | 844,173 | $ | 8,725 | $ | 20,700 | $ | 1,429 | $ | 875,027 |
(dollars in thousands) | June 30, 2016 | December 31, 2015 | September 30, 2016 | December 31, 2015 | ||||||||||||
Commercial real estate | $ | 13,303 | $ | 5,913 | $ | 13,280 | $ | 5,913 | ||||||||
Construction and land development | 60 | 117 | 56 | 117 | ||||||||||||
Commercial and industrial | 3,154 | 3,156 | 3,149 | 3,156 | ||||||||||||
Owner occupied real estate | 1,582 | 2,894 | 1,874 | 2,894 | ||||||||||||
Consumer and other | 743 | 542 | 979 | 542 | ||||||||||||
Residential mortgage | - | - | - | - | ||||||||||||
Total | $ | 18,842 | $ | 12,622 | $ | 19,338 | $ | 12,622 |
(dollars in thousands) | Number of Loans | Accrual Status | Non-Accrual Status | Total TDRs | Number of Loans | Accrual Status | Non-Accrual Status | Total TDRs | ||||||||||||||||||||||||
June 30, 2016 | ||||||||||||||||||||||||||||||||
September 30, 2016 | ||||||||||||||||||||||||||||||||
Commercial real estate | 1 | $ | 5,724 | $ | - | $ | 5,724 | 1 | $ | 5,697 | $ | - | $ | 5,697 | ||||||||||||||||||
Construction and land development | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Commercial and industrial | 2 | 240 | 349 | 589 | 2 | 234 | 349 | 583 | ||||||||||||||||||||||||
Owner occupied real estate | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Consumer and other | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Residential mortgage | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total | 3 | $ | 5,964 | $ | 349 | $ | 6,313 | 3 | $ | 5,931 | $ | 349 | $ | 6,280 | ||||||||||||||||||
December 31, 2015 | ||||||||||||||||||||||||||||||||
Commercial real estate | 1 | $ | 5,778 | $ | - | $ | 5,778 | |||||||||||||||||||||||||
Construction and land development | - | - | - | - | ||||||||||||||||||||||||||||
Commercial and industrial | 2 | 252 | 935 | 1,187 | ||||||||||||||||||||||||||||
Owner occupied real estate | 1 | - | 1,825 | 1,825 | ||||||||||||||||||||||||||||
Consumer and other | - | - | - | - | ||||||||||||||||||||||||||||
Residential mortgage | - | - | - | - | ||||||||||||||||||||||||||||
Total | 4 | $ | 6,030 | $ | 2,760 | $ | 8,790 |
December 31, 2015 | ||||||||||||||||
Commercial real estate | 1 | $ | 5,778 | $ | - | $ | 5,778 | |||||||||
Construction and land development | - | - | - | - | ||||||||||||
Commercial and industrial | 2 | 252 | 935 | 1,187 | ||||||||||||
Owner occupied real estate | 1 | - | 1,825 | 1,825 | ||||||||||||
Consumer and other | - | - | - | - | ||||||||||||
Residential mortgage | - | - | - | - | ||||||||||||
Total | 4 | $ | 6,030 | $ | 2,760 | $ | 8,790 |
(dollars in thousands) | Total | (Level 1) Quoted Prices in Active Markets for Identical Assets | (Level 2) Significant Other Observable Inputs | (Level 3) Significant Unobservable Inputs | ||||||||||||
September 30, 2016 | ||||||||||||||||
Assets: | ||||||||||||||||
Collateralized mortgage obligations | $ | 200,396 | $ | - | $ | 200,396 | $ | - | ||||||||
Agency mortgage-backed securities | 11,686 | - | 11,686 | - | ||||||||||||
Municipal securities | 24,442 | - | 24,442 | - | ||||||||||||
Corporate bonds | 45,428 | - | 42,495 | 2,933 | ||||||||||||
Asset-backed securities | 15,717 | - | 15,717 | - | ||||||||||||
Trust Preferred Securities | 1,691 | - | - | 1,691 | ||||||||||||
Other securities | 25 | - | 25 | - | ||||||||||||
Securities Available for Sale | $ | 299,385 | $ | - | $ | 294,761 | $ | 4,624 | ||||||||
Mortgage Loans Held for Sale | $ | 26,865 | $ | - | $ | 26,865 | $ | - | ||||||||
SBA Servicing Assets | $ | 5,297 | $ | - | $ | - | $ | 5,297 | ||||||||
Interest Rate Lock Commitments | $ | 1,027 | $ | - | $ | 1,027 | $ | - | ||||||||
Liabilities: | ||||||||||||||||
Interest Rate Lock Commitments | $ | 9 | $ | - | $ | 9 | $ | - | ||||||||
Best Efforts Forward Loan Sales Commitments | $ | 377 | $ | - | $ | 377 | $ | - | ||||||||
Mandatory Forward Loan Sales Commitments | $ | 294 | $ | - | $ | 294 | $ | - | ||||||||
December 31, 2015 | ||||||||||||||||
Assets: | ||||||||||||||||
Collateralized mortgage obligations | $ | 178,145 | $ | - | $ | 178,145 | $ | - | ||||||||
Agency mortgage-backed securities | 10,171 | - | 10,171 | - | ||||||||||||
Municipal securities | 23,344 | - | 23,344 | - | ||||||||||||
Corporate bonds | 54,129 | - | 51,295 | 2,834 | ||||||||||||
Asset-backed securities | 17,005 | - | 17,005 | - | ||||||||||||
Trust Preferred Securities | 1,883 | - | - | 1,883 | ||||||||||||
Other securities | 118 | - | 118 | - | ||||||||||||
Securities Available for Sale | $ | 284,795 | $ | - | $ | 280,078 | $ | 4,717 | ||||||||
SBA Servicing Assets | $ | 4,886 | - | - | $ | 4,886 |
(dollars in thousands) | Total | (Level 1) Quoted Prices in Active Markets for Identical Assets | (Level 2) Significant Other Observable Inputs | (Level 3) Significant Unobservable Inputs | ||||||||||||
June 30, 2016 | ||||||||||||||||
Collateralized mortgage obligations | $ | 152,866 | $ | - | $ | 152,866 | $ | - | ||||||||
Agency mortgage-backed securities | 9,419 | - | 9,419 | - | ||||||||||||
Municipal securities | 25,272 | - | 25,272 | - | ||||||||||||
Corporate bonds | 47,799 | - | 44,929 | 2,870 | ||||||||||||
Asset-backed securities | 16,063 | - | 16,063 | - | ||||||||||||
Trust Preferred Securities | 1,755 | - | - | 1,755 | ||||||||||||
Other securities | 115 | - | 115 | - | ||||||||||||
Securities Available for Sale | $ | 253,289 | $ | - | $ | 248,664 | $ | 4,625 | ||||||||
SBA Servicing Assets | $ | 5,118 | $ | 5,118 | ||||||||||||
December 31, 2015 | ||||||||||||||||
Collateralized mortgage obligations | $ | 178,145 | $ | - | $ | 178,145 | $ | - | ||||||||
Agency mortgage-backed securities | 10,171 | - | 10,171 | - | ||||||||||||
Municipal securities | 23,344 | - | 23,344 | - | ||||||||||||
Corporate bonds | 54,129 | - | 51,295 | 2,834 | ||||||||||||
Asset-backed securities | 17,005 | - | 17,005 | - | ||||||||||||
Trust Preferred Securities | 1,883 | - | - | 1,883 | ||||||||||||
Other securities | 118 | - | 118 | - | ||||||||||||
Securities Available for Sale | $ | 284,795 | $ | - | $ | 280,078 | $ | 4,717 | ||||||||
SBA Servicing Assets | $ | 4,886 | $ | 4,886 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||||
Beginning balance | $ | 5,058 | $ | 4,267 | $ | 4,886 | $ | 4,099 | $ | 5,118 | $ | 4,319 | $ | 4,886 | $ | 4,099 | ||||||||||||||||
Additions | 560 | 310 | 802 | 445 | 503 | 227 | 1,305 | 672 | ||||||||||||||||||||||||
Fair value adjustments | (500 | ) | (258 | ) | (570 | ) | (225 | ) | (324 | ) | (372 | ) | (894 | ) | (597 | ) | ||||||||||||||||
Ending balance | $ | 5,118 | $ | 4,319 | $ | 5,118 | $ | 4,319 | $ | 5,297 | $ | 4,174 | $ | 5,297 | $ | 4,174 |
Three Months Ended June 30, 2016 | Three Months Ended June 30, 2015 | Three Months Ended September 30, 2016 | Three Months Ended September 30, 2015 | |||||||||||||||||||||||||||||
Level 3 Investments Only (dollars in thousands) | Trust Preferred Securities | Corporate Bonds | Trust Preferred Securities | Corporate Bonds | Trust Preferred Securities | Corporate Bonds | Trust Preferred Securities | Corporate Bonds | ||||||||||||||||||||||||
Balance, April 1st | $ | 1,858 | $ | 2,844 | $ | 3,042 | $ | 3,006 | ||||||||||||||||||||||||
Balance, July 1st | $ | 1,755 | $ | 2,870 | $ | 2,006 | $ | 2,684 | ||||||||||||||||||||||||
Unrealized gains (losses) | (99 | ) | 26 | 578 | (322 | ) | (62 | ) | 63 | 220 | 17 | |||||||||||||||||||||
Paydowns | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Proceeds from sales | - | - | (1,538 | ) | - | - | - | (414 | ) | - | ||||||||||||||||||||||
Realized losses | - | - | (76 | ) | - | - | - | (142 | ) | - | ||||||||||||||||||||||
Impairment charges on Level 3 | (4 | ) | - | - | - | (2 | ) | - | - | - | ||||||||||||||||||||||
Balance, June 30th | $ | 1,755 | $ | 2,870 | $ | 2,006 | $ | 2,684 | ||||||||||||||||||||||||
Balance, September 30th | $ | 1,691 | $ | 2,933 | $ | 1,670 | $ | 2,701 |
Six Months Ended June 30, 2016 | Six Months Ended June 30, 2015 | Nine Months Ended September 30, 2016 | Nine Months Ended September 30, 2015 | |||||||||||||||||||||||||||||
Level 3 Investments Only (dollars in thousands) | Trust Preferred Securities | Corporate Bonds | Trust Preferred Securities | Corporate Bonds | Trust Preferred Securities | Corporate Bonds | Trust Preferred Securities | Corporate Bonds | ||||||||||||||||||||||||
Balance, January 1st | $ | 1,883 | $ | 2,834 | $ | 3,193 | $ | 3,005 | $ | 1,883 | $ | 2,834 | $ | 3,193 | $ | 3,005 | ||||||||||||||||
Unrealized gains (losses) | (123 | ) | 36 | 449 | (321 | ) | (185 | ) | 99 | 669 | (304 | ) | ||||||||||||||||||||
Paydowns | - | - | (19 | ) | - | - | - | (19 | ) | - | ||||||||||||||||||||||
Proceeds from sales | - | - | (1,538 | ) | - | - | - | (1,952 | ) | - | ||||||||||||||||||||||
Realized losses | - | - | (76 | ) | - | - | - | (218 | ) | - | ||||||||||||||||||||||
Impairment charges on Level 3 | (5 | ) | - | (3 | ) | - | (7 | ) | - | (3 | ) | - | ||||||||||||||||||||
Balance, June 30th | $ | 1,755 | $ | 2,870 | $ | 2,006 | $ | 2,684 | ||||||||||||||||||||||||
Balance, September 30th | $ | 1,691 | $ | 2,933 | $ | 1,670 | $ | 2,701 |
(dollars in thousands) | Total | (Level 1) Quoted Prices in Active Markets for Identical Assets | (Level 2) Significant Other Observable Inputs | (Level 3) Significant Unobservable Inputs | Total | (Level 1) Quoted Prices in Active Markets for Identical Assets | (Level 2) Significant Other Observable Inputs | (Level 3) Significant Unobservable Inputs | ||||||||||||||||||||||||
June 30, 2016: | ||||||||||||||||||||||||||||||||
September 30, 2016: | ||||||||||||||||||||||||||||||||
Impaired loans | $ | 9,024 | $ | - | $ | - | $ | 9,024 | $ | 9,331 | $ | - | $ | - | $ | 9,331 | ||||||||||||||||
Other real estate owned | 8,807 | - | - | 8,807 | 8,593 | - | - | 8,593 | ||||||||||||||||||||||||
December 31, 2015: | ||||||||||||||||||||||||||||||||
Impaired loans | $ | 5,734 | $ | - | $ | - | $ | 5,734 | $ | 5,734 | $ | - | $ | - | $ | 5,734 | ||||||||||||||||
Other real estate owned | 10,034 | - | - | 10,034 | 10,034 | - | - | 10,034 |
Quantitative Information about Level 3 Fair Value Measurements | Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||||||||
Asset Description | Fair Value | Valuation Technique | Unobservable Input | Range Weighted Average | Fair Value | Valuation Technique | Unobservable Input | Range Weighted Average | |||||||||||
June 30, 2016 | |||||||||||||||||||
September 30, 2016 | |||||||||||||||||||
Corporate bonds | $ | 2,870 | Discounted Cash Flows | Discount Rate | (4.19%) | $ | 2,933 | Discounted Cash Flows | Discount Rate | (4.35%) | |||||||||
Trust preferred securities | $ | 1,755 | Discounted Cash Flows | Discount Rate | 7.87% - 8.37% (8.10%) | $ | 1,691 | Discounted Cash Flows | Discount Rate | 8.45% - 8.95% (8.68%) | |||||||||
SBA servicing assets | $ | 5,118 | Discounted Cash Flows | Conditional Prepayment Rate Discount Rate | (6.35%) (10.0%) | $ | 5,297 | Discounted Cash Flows | Conditional Prepayment Rate Discount Rate | (6.16%) (10.00%) | |||||||||
Impaired loans | $ | 9,024 | Appraised Value of Collateral (1) | Liquidation expenses (2) Appraisal adjustment (2) | 7% - 24% (12%)(3) (0%)(3) | $ | 9,331 | Appraised Value of Collateral (1) | Liquidation expenses (2) Appraisal adjustment (2) | 4% - 76% (15%) (3) (0%) (3) | |||||||||
Other real estate owned | $ | 8,807 | Appraised Value of Collateral (1) Sales Price | Liquidation expenses (2) Appraisal adjustment (2) Liquidation expenses (2) | 4% - 19% (6%) (3) (0%) (6%)(3) | $ | 8,593 | Appraised Value of Collateral (1) Sales Price | Liquidation expenses (2) Appraisal adjustment (2) Liquidation expenses (2) | 7% - 27% (12%) (3) (0%) (3) (7%) (3) | |||||||||
December 31, 2015 | |||||||||||||||||||
Corporate bonds | $ | 2,834 | Discounted Cash Flows | Discount Rate | (4.11%) | $ | 2,834 | Discounted Cash Flows | Discount Rate | (4.11%) | |||||||||
Trust preferred securities | $ | 1,883 | Discounted Cash Flows | Discount Rate | 7.31% - 7.81% (7.77%) | $ | 1,883 | Discounted Cash Flows | Discount Rate | 7.31% - 7.81% (7.77%) | |||||||||
SBA servicing assets | $ | 4,886 | Discounted Cash Flows | Conditional Prepayment Rate Discount Rate | (6.27%) (10.0%) | $ | 4,886 | Discounted Cash Flows | Conditional Prepayment Rate Discount Rate | (6.27%) (10.00%) | |||||||||
Impaired loans | $ | 5,734 | Appraised Value of Collateral (1) | Liquidation expenses (2) | 12% - 78% (20%)(3) | $ | 5,734 | Appraised Value of Collateral (1) | Liquidation expenses (2) | 12% - 78% (20%) (3) | |||||||||
Other real estate owned | $ | 10,034 | Appraised Value of Collateral (1) Sales Price | Liquidation expenses (2) Appraisal adjustment (2) Liquidation expenses (2) | 6% - 30% (10%) (3) (50%) 7%-9% (9%) (3) | $ | 10,034 | Appraised Value of Collateral (1) Sales Price | Liquidation expenses (2) Appraisal adjustment (2) Liquidation expenses (2) | 6% - 30% (10%) (3) (50%) (3) 7% - 9% (9%) (3) |
(1) | Fair value is generally determined through independent appraisals of the underlying collateral, which include Level 3 inputs that are not identifiable. |
(2) | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. |
(3) | The range and weighted average of qualitative factors such as economic conditions and estimated liquidation expenses are presented as a percent of the appraised value. |
Mortgage loans held for sale | Carrying Amount | Aggregate Unpaid Principal Balance | Excess Carrying Amount Over Aggregate Unpaid Principal Balance | |||||||||
September 30, 2016 | $ | 26,865 | $ | 25,726 | $ | 1,139 |
(dollars in thousands) | June 30, 2016 | December 31, 2015 | September 30, 2016 | December 31, 2015 | ||||||||||||
SBA Servicing Asset | ||||||||||||||||
Fair Value of SBA Servicing Asset | $ | 5,118 | $ | 4,886 | $ | 5,297 | $ | 4,886 | ||||||||
Composition of SBA Loans Serviced for Others | ||||||||||||||||
Fixed-rate SBA loans | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Adjustable-rate SBA loans | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Weighted Average Remaining Term | 21.0 years | 20.9 years | 21.2 years | 20.9 years | ||||||||||||
Prepayment Speed | 6.35 | % | 6.27 | % | 6.16 | % | 6.27 | % | ||||||||
Effect on fair value of a 10% increase | $ | (159 | ) | $ | (151 | ) | $ | (162 | ) | $ | (151 | ) | ||||
Effect on fair value of a 20% increase | (311 | ) | (296 | ) | (318 | ) | (296 | ) | ||||||||
Weighted Average Discount Rate | 10.00 | % | 10.00 | % | 10.00 | % | 10.00 | % | ||||||||
Effect on fair value of a 10% increase | $ | (214 | ) | $ | (206 | ) | $ | (223 | ) | $ | (206 | ) | ||||
Effect on fair value of a 20% increase | (413 | ) | (397 | ) | (429 | ) | (397 | ) |
Fair Value Measurements at September 30, 2016 | ||||||||||||||||||||
(dollars in thousands) | Carrying Amount | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
Balance Sheet Data | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 150,041 | $ | 150,041 | $ | 150,041 | $ | - | $ | - | ||||||||||
Investment securities available for sale | 299,385 | 299,385 | - | 294,761 | 4,624 | |||||||||||||||
Investment securities held to maturity | 220,470 | 223,247 | - | 223,247 | - | |||||||||||||||
Restricted stock | 1,366 | 1,366 | - | 1,366 | - | |||||||||||||||
Loans held for sale | 29,715 | 29,715 | - | 26,865 | 2,850 | |||||||||||||||
Loans receivable, net | 936,088 | 917,242 | - | - | 917,242 | |||||||||||||||
SBA servicing assets | 5,297 | 5,297 | - | - | 5,297 | |||||||||||||||
Accrued interest receivable | 4,588 | 4,588 | - | 4,588 | - | |||||||||||||||
Interest rate lock commitments | 1,027 | 1,027 | - | 1,027 | - | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Demand, savings and money market | $ | 1,473,105 | $ | 1,473,105 | $ | - | $ | 1,473,105 | $ | - | ||||||||||
Time | 109,127 | 109,172 | - | 109,172 | - | |||||||||||||||
Subordinated debt | 22,476 | 18,257 | - | - | 18,257 | |||||||||||||||
Accrued interest payable | 339 | 339 | - | 339 | - |
Fair Value Measurements at June 30, 2016 | ||||||||||||||||||||
(dollars in thousands) | Carrying Amount | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
Balance Sheet Data | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 111,772 | $ | 111,772 | $ | 111,772 | $ | - | $ | - | ||||||||||
Investment securities available for sale | 253,289 | 253,289 | - | 248,664 | 4,625 | |||||||||||||||
Investment securities held to maturity | 199,074 | 203,186 | - | 203,186 | - | |||||||||||||||
Restricted stock | 1,367 | 1,367 | - | 1,367 | - | |||||||||||||||
Loans held for sale | 5,487 | 5,747 | - | - | 5,747 | |||||||||||||||
Loans receivable, net | 920,993 | 902,135 | - | - | 902,135 | |||||||||||||||
SBA servicing assets | 5,118 | 5,118 | - | - | 5,118 | |||||||||||||||
Accrued interest receivable | 4,367 | 4,367 | - | 4,367 | - | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Demand, savings and money market | $ | 1,328,122 | $ | 1,328,122 | $ | - | $ | 1,328,122 | $ | - | ||||||||||
Time | 106,129 | 106,384 | - | 106,384 | - | |||||||||||||||
Subordinated debt | 22,476 | 18,659 | - | - | 18,659 | |||||||||||||||
Accrued interest payable | 313 | 313 | - | 313 | - | |||||||||||||||
Off-Balance Sheet Data | ||||||||||||||||||||
Commitments to extend credit | - | - | ||||||||||||||||||
Standby letters-of-credit | - | - |
Interest rate lock commitments | 9 | 9 | - | 9 | - | |||||||||||||||
Best efforts forward loan sales commitments | 377 | 377 | - | 377 | - | |||||||||||||||
Mandatory forward loan sales commitments | 294 | 294 | - | 294 | - | |||||||||||||||
Off-Balance Sheet Data | ||||||||||||||||||||
Commitments to extend credit | - | - | - | - | - | |||||||||||||||
Standby letters-of-credit | - | - | - | - | - |
Fair Value Measurements at December 31, 2015 | Fair Value Measurements at December 31, 2015 | |||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Carrying Amount | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Carrying Amount | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||
Balance Sheet Data | ||||||||||||||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 27,139 | $ | 27,139 | $ | 27,139 | $ | - | $ | - | $ | 27,139 | $ | 27,139 | $ | 27,139 | $ | - | $ | - | ||||||||||||||||||||
Investment securities available for sale | 284,795 | 284,795 | - | 280,078 | 4,717 | 284,795 | 284,795 | - | 280,078 | 4,717 | ||||||||||||||||||||||||||||||
Investment securities held to maturity | 172,277 | 171,845 | - | 171,845 | - | 172,277 | 171,845 | - | 171,845 | - | ||||||||||||||||||||||||||||||
Restricted stock | 3,059 | 3,059 | - | 3,059 | - | 3,059 | 3,059 | - | 3,059 | - | ||||||||||||||||||||||||||||||
Loans held for sale | 3,653 | 3,831 | - | - | 3,831 | 3,653 | 3,831 | - | - | 3,831 | ||||||||||||||||||||||||||||||
Loans receivable, net | 866,066 | 849,578 | - | - | 849,578 | 866,066 | 849,578 | - | - | 849,578 | ||||||||||||||||||||||||||||||
SBA servicing assets | 4,886 | 4,886 | - | - | 4,886 | 4,886 | 4,886 | - | - | 4,886 | ||||||||||||||||||||||||||||||
Accrued interest receivable | 4,216 | 4,216 | - | 4,216 | - | 4,216 | 4,216 | - | 4,216 | - | ||||||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||||||||||||||
Demand, savings and money market | $ | 1,181,720 | $ | 1,181,720 | $ | - | $ | 1,181,720 | $ | - | $ | 1,181,720 | $ | 1,181,720 | $ | - | $ | 1,181,720 | $ | - | ||||||||||||||||||||
Time | 67,578 | 67,422 | - | 67,422 | - | 67,578 | 67,422 | - | 67,422 | - | ||||||||||||||||||||||||||||||
Short-term borrowings | 47,000 | 47,000 | - | 47,000 | - | 47,000 | 47,000 | - | 47,000 | - | ||||||||||||||||||||||||||||||
Subordinated debt | 22,476 | 18,972 | - | - | 18,972 | 22,476 | 18,972 | - | - | 18,972 | ||||||||||||||||||||||||||||||
Accrued interest payable | 245 | 245 | - | 245 | - | 245 | 245 | - | 245 | - | ||||||||||||||||||||||||||||||
Off-Balance Sheet Data | ||||||||||||||||||||||||||||||||||||||||
Commitments to extend credit | - | - | ||||||||||||||||||||||||||||||||||||||
Standby letters-of-credit | - | - |
Off-Balance Sheet Data | ||||||||||||||||||||
Commitments to extend credit | - | - | - | - | - | |||||||||||||||
Standby letters-of-credit | - | - | - | - | - |
Unrealized Gains (Losses) on Available-For-Sale Securities | Unrealized Holding Losses on Securities Transferred From Available-For-Sale To Held-To-Maturity | Total | Unrealized Gains (Losses) on Available-For-Sale Securities | Unrealized Holding Losses on Securities Transferred From Available-For-Sale To Held-To-Maturity | Total | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
Balance January 1, 2016 | $ | (2,562 | ) | $ | (603 | ) | $ | (3,165 | ) | $ | (2,562 | ) | $ | (603 | ) | $ | (3,165 | ) | ||||||
Unrealized gain on securities | 2,863 | - | 2,863 | 2,170 | - | 2,170 | ||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income to net income (2) | (416 | ) | 61 | (355 | ) | (416 | ) | 85 | (331 | ) | ||||||||||||||
Net current-period other comprehensive income | 2,447 | 61 | 2,508 | 1,754 | 85 | 1,839 | ||||||||||||||||||
Balance June 30, 2016 | $ | (115 | ) | $ | (542 | ) | $ | (657 | ) | |||||||||||||||
Balance September 30, 2016 | $ | (808 | ) | $ | (518 | ) | $ | (1,326 | ) | |||||||||||||||
Balance January 1, 2015 | $ | 82 | $ | (714 | ) | $ | (632 | ) | $ | 82 | $ | (714 | ) | $ | (632 | ) | ||||||||
Unrealized gain on securities | (774 | ) | - | (774 | ) | |||||||||||||||||||
Unrealized loss on securities | (460 | ) | - | (460 | ) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income to net income (2) | (4 | ) | 66 | 62 | (45 | ) | 82 | 37 | ||||||||||||||||
Net current-period other comprehensive income | (778 | ) | 66 | (712 | ) | |||||||||||||||||||
Balance June 30, 2015 | $ | (696 | ) | $ | (648 | ) | $ | (1,344 | ) | |||||||||||||||
Net current-period other comprehensive income (loss) | (505 | ) | 82 | (423 | ) | |||||||||||||||||||
Balance September 30, 2015 | $ | (423 | ) | $ | (632 | ) | $ | (1,055 | ) | |||||||||||||||
Balance January 1, 2015 | $ | 82 | $ | (714 | ) | $ | (632 | ) | $ | 82 | $ | (714 | ) | $ | (632 | ) | ||||||||
Unrealized gain on securities | (2,577 | ) | - | (2,577 | ) | |||||||||||||||||||
Unrealized loss on securities | (2,577 | ) | - | (2,577 | ) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income to net income (2) | (67 | ) | 111 | 44 | (67 | ) | 111 | 44 | ||||||||||||||||
Net current-period other comprehensive income | (2,644 | ) | 111 | (2,533 | ) | |||||||||||||||||||
Net current-period other comprehensive income (loss) | (2,644 | ) | 111 | (2,533 | ) | |||||||||||||||||||
Balance December 31, 2015 | $ | (2,562 | ) | $ | (603 | ) | $ | (3,165 | ) | $ | (2,562 | ) | $ | (603 | ) | $ | (3,165 | ) |
(1) | All amounts are net of tax. Amounts in parentheses indicate reductions to other comprehensive income. |
(2) | Reclassification amounts are reported as gains on sales of investment securities, impairment losses, and amortization of net unrealized losses on the Consolidated Statement of Operations. |
Consideration paid: | ||||
Cash | $ | 7,136 | ||
Equity instruments | 202 | |||
Deferred additional purchase price | 500 | |||
Value of consideration | $ | 7,838 | ||
Assets acquired: | ||||
Cash and cash equivalents | $ | 1,223 | ||
Loans held for sale | 20,871 | |||
Loans receivable | 1,132 | |||
Premises and equipment | 103 | |||
Derivative assets | 1,508 | |||
Intangible assets – non complete agreements | 104 | |||
Other assets | 125 | |||
Total assets | 25,066 | |||
Liabilities assumed: | ||||
Warehouse lines of credit | 19,666 | |||
Derivative liabilities | 412 | |||
Other liabilities | 2,042 | |||
Total liabilities | 22,120 | |||
Net assets acquired | 2,946 | |||
Goodwill resulting from acquisition of Oak Mortgage | $ | 4,892 |
Nine Months Ended September 30, | ||||||||
2016 | 2015 | |||||||
Total revenues | $ | 52,610 | $ | 44,238 | ||||
Net income | $ | 4,462 | $ | 3,569 |
(dollars in thousands) | Balance December 31, 2015 | Additions/ Adjustments | Amortization | Balance September 30, 2016 | Amortization Period (in years) | |||||||||||||||
Goodwill | $ | - | $ | 4,892 | $ | - | $ | 4,892 | Indefinite | |||||||||||
Non-compete agreements | - | 104 | (17 | ) | 87 | 1 | ||||||||||||||
Total | $ | - | $ | 4,996 | $ | (17 | ) | $ | 4,979 |
September 30, 2016 | Balance Sheet Presentation | Fair Value | Notional Amount | ||||||
Asset derivatives: | |||||||||
IRLC's | Other Assets | $ | 1,027 | $ | 36,090 | ||||
Best efforts forward loan sales commitments | Other Assets | - | 546 | ||||||
Mandatory forward loan sales commitments | Other Assets | - | 164 | ||||||
Liability derivatives: | |||||||||
IRLC's | Other Liabilities | $ | 9 | $ | 1,502 | ||||
Best efforts forward loan sales commitments | Other Liabilities | 377 | 37,046 | ||||||
Mandatory forward loan sales commitments | Other Liabilities | 294 | 25,525 |
Nine Months Ended September 30, 2016 | Income Statement Presentation | Gain/(Loss) | |||
Asset derivatives: | |||||
IRLC's | Loan advisory and servicing fees | $ | (454) | ||
Best efforts forward loan sales commitments | Loan advisory and servicing fees | (26) | |||
Mandatory forward loan sales commitments | Loan advisory and servicing fees | - | |||
Liability derivatives: | |||||
IRLC's | Other operating expense | $ | 14 | ||
Best efforts forward loan sales commitments | Other operating expense | 11 | |||
Mandatory forward loan sales commitments | Other operating expense | (294) |
For the three months ended September 30, 2016 | For the three months ended September 30, 2015 | |||||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest | Yield/ Rate(1) | Average Balance | Interest | Yield/ Rate(1) | ||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Federal funds sold and other interest-earning assets | $ | 114,260 | $ | 149 | 0.52 | % | $ | 106,357 | $ | 60 | 0.22 | % | ||||||||||||
Investment securities and restricted stock | 477,601 | 2,858 | 2.39 | % | 305,266 | 1,745 | 2.29 | % | ||||||||||||||||
Loans receivable | 966,106 | 10,848 | 4.47 | % | 831,712 | 9,718 | 4.64 | % | ||||||||||||||||
Total interest-earning assets | 1,557,967 | 13,855 | 3.54 | % | 1,243,335 | 11,523 | 3.68 | % | ||||||||||||||||
Other assets | 103,826 | 82,638 | ||||||||||||||||||||||
Total assets | $ | 1,661,793 | $ | 1,325,973 | ||||||||||||||||||||
Interest-earning liabilities: | ||||||||||||||||||||||||
Demand – non-interest bearing | $ | 282,571 | $ | 234,285 | ||||||||||||||||||||
Demand – interest bearing | 533,222 | 553 | 0.41 | % | 372,795 | 378 | 0.40 | % | ||||||||||||||||
Money market & savings | 583,256 | 677 | 0.46 | % | 500,687 | 538 | 0.43 | % | ||||||||||||||||
Time deposits | 104,701 | 301 | 1.14 | % | 74,863 | 183 | 0.97 | % | ||||||||||||||||
Total deposits | 1,503,750 | 1,531 | 0.41 | % | 1,182,630 | 1,099 | 0.37 | % | ||||||||||||||||
Total interest-bearing deposits | 1,221,179 | 1,531 | 0.50 | % | 948,345 | 1,099 | 0.46 | % | ||||||||||||||||
Other borrowings | 29,938 | 303 | 4.03 | % | 22,476 | 279 | 4.92 | % | ||||||||||||||||
Total interest-bearing liabilities | 1,251,117 | 1,834 | 0.58 | % | 970,821 | 1,378 | 0.56 | % | ||||||||||||||||
Total deposits and other borrowings | 1,533,688 | 1,834 | 0.48 | % | 1,205,106 | 1,378 | 0.45 | % | ||||||||||||||||
Non interest-bearing other liabilities | 9,247 | 7,034 | ||||||||||||||||||||||
Shareholders' equity | 118,858 | 113,833 | ||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,661,793 | $ | 1,325,973 | ||||||||||||||||||||
Net interest income (2) | $ | 12,021 | $ | 10,145 | ||||||||||||||||||||
Net interest spread | 2.96 | % | 3.12 | % | ||||||||||||||||||||
Net interest margin (2) | 3.07 | % | 3.24 | % |
For the three months ended June 30, 2016 | For the three months ended June 30, 2015 | |||||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest | Yield/ Rate(1) | Average Balance | Interest | Yield/ Rate(1) | ||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Federal funds sold and other interest-earning assets | $ | 72,517 | $ | 87 | 0.48 | % | $ | 125,839 | $ | 86 | 0.27 | % | ||||||||||||
Investment securities and restricted stock | 460,161 | 2,895 | 2.52 | % | 265,268 | 1,617 | 2.44 | % | ||||||||||||||||
Loans receivable | 921,274 | 10,445 | 4.56 | % | 812,155 | 9,339 | 4.61 | % | ||||||||||||||||
Total interest-earning assets | 1,453,952 | 13,427 | 3.71 | % | 1,203,262 | 11,042 | 3.68 | % | ||||||||||||||||
Other assets | 93,555 | 67,724 | ||||||||||||||||||||||
Total assets | $ | 1,547,507 | $ | 1,270,986 | ||||||||||||||||||||
Interest-earning liabilities: | ||||||||||||||||||||||||
Demand – non-interest bearing | $ | 266,996 | $ | 229,468 | ||||||||||||||||||||
Demand – interest bearing | 481,994 | 503 | 0.42 | % | 333,075 | 341 | 0.41 | % | ||||||||||||||||
Money market & savings | 574,207 | 637 | 0.45 | % | 491,644 | 501 | 0.41 | % | ||||||||||||||||
Time deposits | 77,856 | 183 | 0.95 | % | 73,497 | 170 | 0.93 | % | ||||||||||||||||
Total deposits | 1,401,053 | 1,323 | 0.38 | % | 1,127,684 | 1,012 | 0.36 | % | ||||||||||||||||
Total interest-bearing deposits | 1,134,057 | 1,323 | 0.47 | % | 898,216 | 1,012 | 0.45 | % | ||||||||||||||||
Other borrowings | 22,476 | 289 | 5.17 | % | 22,476 | 278 | 4.96 | % | ||||||||||||||||
Total interest-bearing liabilities | 1,156,533 | 1,612 | 0.56 | % | 920,692 | 1,290 | 0.56 | % | ||||||||||||||||
Total deposits and other borrowings | 1,423,529 | 1,612 | 0.46 | % | 1,150,160 | 1,290 | 0.45 | % | ||||||||||||||||
Non interest-bearing other liabilities | 6,871 | 7,123 | ||||||||||||||||||||||
Shareholders' equity | 117,107 | 113,703 | ||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,547,507 | $ | 1,270,986 | ||||||||||||||||||||
Net interest income (2) | $ | 11,815 | $ | 9,752 | ||||||||||||||||||||
Net interest spread | 3.15 | % | 3.12 | % | ||||||||||||||||||||
Net interest margin (2) | 3.27 | % | 3.25 | % |
(1) | Yields on investments are calculated based on amortized cost. |
(2) | Net interest income and net interest margin are presented on a tax equivalent basis. Net interest income has been increased over the financial statement amount by $235 and $153 for the three months ended September 30, 2016 and 2015, respectively, to adjust for tax equivalency. The tax equivalent net interest margin is calculated by dividing tax equivalent net interest income by average total interest earning assets. |
For the nine months ended September 30, 2016 | For the nine months ended September 30, 2015 | |||||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest | Yield/ Rate(1) | Average Balance | Interest | Yield/ Rate(1) | ||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Federal funds sold and other interest-earning assets | $ | 78,094 | $ | 299 | 0.51 | % | $ | 120,783 | $ | 223 | 0.25 | % | ||||||||||||
Investment securities and restricted stock | 458,496 | 8,615 | 2.51 | % | 275,277 | 5,036 | 2.44 | % | ||||||||||||||||
Loans receivable | 925,110 | 31,339 | 4.53 | % | 809,259 | 28,202 | 4.66 | % | ||||||||||||||||
Total interest-earning assets | 1,461,700 | 40,253 | 3.68 | % | 1,205,319 | 33,461 | 3.71 | % | ||||||||||||||||
Other assets | 95,054 | 70,854 | ||||||||||||||||||||||
Total assets | $ | 1,556,754 | $ | 1,276,173 | ||||||||||||||||||||
Interest-earning liabilities: | ||||||||||||||||||||||||
Demand – non-interest bearing | $ | 270,503 | $ | 230,181 | ||||||||||||||||||||
Demand – interest bearing | 476,134 | 1,471 | 0.41 | % | 334,116 | 1,009 | 0.40 | % | ||||||||||||||||
Money market & savings | 572,347 | 1,923 | 0.45 | % | 494,077 | 1,592 | 0.43 | % | ||||||||||||||||
Time deposits | 82,738 | 625 | 1.01 | % | 74,613 | 528 | 0.95 | % | ||||||||||||||||
Total deposits | 1,401,722 | 4,019 | 0.38 | % | 1,132,987 | 3,129 | 0.37 | % | ||||||||||||||||
Total interest-bearing deposits | 1,131,219 | 4,019 | 0.47 | % | 902,806 | 3,129 | 0.46 | % | ||||||||||||||||
Other borrowings | 29,947 | 898 | 4.01 | % | 22,489 | 833 | 4.95 | % | ||||||||||||||||
Total interest-bearing liabilities | 1,161,166 | 4,917 | 0.57 | % | 925,295 | 3,962 | 0.57 | % | ||||||||||||||||
Total deposits and other borrowings | 1,431,669 | 4,917 | 0.46 | % | 1,155,476 | 3,962 | 0.46 | % | ||||||||||||||||
Non interest-bearing other liabilities | 7,957 | 7,106 | ||||||||||||||||||||||
Shareholders' equity | 117,128 | 113,591 | ||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,556,754 | $ | 1,276,173 | ||||||||||||||||||||
Net interest income (2) | $ | 35,336 | $ | 29,499 | ||||||||||||||||||||
Net interest spread | 3.11 | % | 3.14 | % | ||||||||||||||||||||
Net interest margin (2) | 3.23 | % | 3.27 | % |
For the six months ended June 30, 2016 | For the six months ended June 30, 2015 | |||||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest | Yield/ Rate(1) | Average Balance | Interest | Yield/ Rate(1) | ||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Federal funds sold and other interest-earning assets | $ | 59,813 | $ | 150 | 0.50 | % | $ | 128,116 | $ | 163 | 0.26 | % | ||||||||||||
Investment securities and restricted stock | 448,837 | 5,757 | 2.57 | % | 260,034 | 3,291 | 2.53 | % | ||||||||||||||||
Loans receivable | 904,387 | 20,491 | 4.56 | % | 797,846 | 18,484 | 4.67 | % | ||||||||||||||||
Total interest-earning assets | 1,413,037 | 26,398 | 3.76 | % | 1,185,996 | 21,938 | 3.73 | % | ||||||||||||||||
Other assets | 90,620 | 64,865 | ||||||||||||||||||||||
Total assets | $ | 1,503,657 | $ | 1,250,861 | ||||||||||||||||||||
Interest-earning liabilities: | ||||||||||||||||||||||||
Demand – non-interest bearing | $ | 264,403 | $ | 228,096 | ||||||||||||||||||||
Demand – interest bearing | 447,276 | 918 | 0.41 | % | 314,455 | 631 | 0.40 | % | ||||||||||||||||
Money market & savings | 566,833 | 1,246 | 0.44 | % | 490,717 | 1,054 | 0.43 | % | ||||||||||||||||
Time deposits | 71,635 | 324 | 0.91 | % | 74,486 | 345 | 0.93 | % | ||||||||||||||||
Total deposits | 1,350,147 | 2,488 | 0.37 | % | 1,107,754 | 2,030 | 0.37 | % | ||||||||||||||||
Total interest-bearing deposits | 1,085,744 | 2,488 | 0.46 | % | 879,658 | 2,030 | 0.47 | % | ||||||||||||||||
Other borrowings | 29,952 | 595 | 3.99 | % | 22,496 | 554 | 4.97 | % | ||||||||||||||||
Total interest-bearing liabilities | 1,115,696 | 3,083 | 0.56 | % | 902,154 | 2,584 | 0.58 | % | ||||||||||||||||
Total deposits and other borrowings | 1,380,099 | 3,083 | 0.45 | % | 1,130,250 | 2,584 | 0.46 | % | ||||||||||||||||
Non interest-bearing other liabilities | 7,211 | 7,184 | ||||||||||||||||||||||
Shareholders' equity | 116,347 | 113,427 | ||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,503,657 | $ | 1,250,861 | ||||||||||||||||||||
Net interest income (2) | $ | 23,315 | $ | 19,354 | ||||||||||||||||||||
Net interest spread | 3.20 | % | 3.15 | % | ||||||||||||||||||||
Net interest margin (2) | 3.32 | % | 3.29 | % |
(1) | Yields on investments are calculated based on amortized cost. |
(2) | Net interest income and net interest margin are presented on a tax equivalent basis. Net interest income has been increased over the financial statement amount by $662 and $431 for the nine months ended September 30, 2016 and 2015, respectively, to adjust for tax equivalency. The tax equivalent net interest margin is calculated by dividing tax equivalent net interest income by average total interest earning assets. |
For the three months ended June 30, 2016 vs. 2015 | For the six months ended June 30, 2016 vs. 2015 | For the three months ended September 30, 2016 vs. 2015 | For the nine months ended September 30, 2016 vs. 2015 | |||||||||||||||||||||||||||||||||||||||||||||
Changes due to: | Changes due to: | Changes due to: | Changes due to: | |||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Average Volume | Average Rate | Total Change | Average Volume | Average Rate | Total Change | Average Volume | Average Rate | Total Change | Average Volume | Average Rate | Total Change | ||||||||||||||||||||||||||||||||||||
Interest earned: | ||||||||||||||||||||||||||||||||||||||||||||||||
Federal funds sold and other interest-earning assets | $ | (60 | ) | $ | 61 | $ | 1 | $ | (171 | ) | $ | 158 | $ | (13 | ) | $ | 8 | $ | 81 | $ | 89 | $ | (163 | ) | $ | 239 | $ | 76 | ||||||||||||||||||||
Securities | 1,226 | 52 | 1,278 | 2,422 | 44 | 2,466 | 1,021 | 92 | 1,113 | 3,443 | 136 | 3,579 | ||||||||||||||||||||||||||||||||||||
Loans | 1,228 | (122 | ) | 1,106 | 2,396 | (389 | ) | 2,007 | 1,498 | (368 | ) | 1,130 | 3,894 | (757 | ) | 3,137 | ||||||||||||||||||||||||||||||||
Total interest-earning assets | 2,394 | (9 | ) | 2,385 | 4,647 | (187 | ) | 4,460 | 2,527 | (195 | ) | 2,332 | 7,174 | (382 | ) | 6,792 | ||||||||||||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing demand deposits | 155 | 7 | 162 | 272 | 15 | 287 | 166 | 9 | 175 | 438 | 24 | 462 | ||||||||||||||||||||||||||||||||||||
Money market and savings | 92 | 44 | 136 | 168 | 24 | 192 | 93 | 46 | 139 | 261 | 70 | 331 | ||||||||||||||||||||||||||||||||||||
Time deposits | 8 | 5 | 13 | (13 | ) | (8 | ) | (21 | ) | 74 | 44 | 118 | 61 | 36 | 97 | |||||||||||||||||||||||||||||||||
Total deposit interest expense | 255 | 56 | 311 | 427 | 31 | 458 | 333 | 99 | 432 | 760 | 130 | 890 | ||||||||||||||||||||||||||||||||||||
Other borrowings | - | 11 | 11 | 22 | 19 | 41 | 12 | 12 | 24 | 34 | 31 | 65 | ||||||||||||||||||||||||||||||||||||
Total interest expense | 255 | 67 | 322 | 449 | 50 | 499 | 345 | 111 | 456 | 794 | 161 | 955 | ||||||||||||||||||||||||||||||||||||
Net interest income | $ | 2,139 | $ | (76 | ) | $ | 2,063 | $ | 4,198 | $ | (237 | ) | $ | 3,961 | $ | 2,182 | $ | (306 | ) | $ | 1,876 | $ | 6,380 | $ | (543 | ) | $ | 5,837 |
(dollars in thousands) | Actual | Minimum Capital Adequacy | Minimum Capital Adequacy with Capital Buffer | To Be Well Capitalized Under Prompt Corrective Action Provisions | Actual | Minimum Capital Adequacy | Minimum Capital Adequacy with Capital Buffer | To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||||||||||||||||||||||||||
At June 30, 2016: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
At September 30, 2016: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total risk based capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Republic | $ | 140,201 | 12.11 | % | $ | 92,633 | 8.00 | % | $ | 99,870 | 8.625 | % | $ | 115,791 | 10.00 | % | $ | 137,688 | 11.51 | % | $ | 95,668 | 8.00 | % | $ | 103,142 | 8.625 | % | $ | 119,585 | 10.00 | % | ||||||||||||||||||||||||||||||||
Company | 146,717 | 12.62 | % | 93,019 | 8.00 | % | 100,286 | 8.625 | % | - | - | % | 144,109 | 12.00 | % | 96,039 | 8.00 | % | 103,543 | 8.625 | % | - | - | % | ||||||||||||||||||||||||||||||||||||||||
Tier one risk based capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Republic | 131,440 | 11.35 | % | 69,474 | 6.00 | % | 76,711 | 6.625 | % | 92,633 | 8.00 | % | 128,235 | 10.72 | % | 71,751 | 6.00 | % | 79,225 | 6.625 | % | 95,668 | 8.00 | % | ||||||||||||||||||||||||||||||||||||||||
Company | 137,956 | 11.86 | % | 69,764 | 6.00 | % | 77,032 | 6.625 | % | - | - | % | 134,656 | 11.22 | % | 72,030 | 6.00 | % | 79,533 | 6.625 | % | - | - | % | ||||||||||||||||||||||||||||||||||||||||
CET 1 risk based capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Republic | 131,440 | 11.35 | % | 52,106 | 4.50 | % | 59,343 | 5.125 | % | 75,264 | 6.50 | % | 128,235 | 10.72 | % | 53,813 | 4.50 | % | 61,287 | 5.125 | % | 77,730 | 6.50 | % | ||||||||||||||||||||||||||||||||||||||||
Company | 116,156 | 9.99 | % | 52,323 | 4.50 | % | 59,590 | 5.125 | % | - | - | % | 112,856 | 9.40 | % | 54,022 | 4.50 | % | 61,525 | 5.125 | % | - | - | % | ||||||||||||||||||||||||||||||||||||||||
Tier one leveraged capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Republic | 131,440 | 8.54 | % | 61,562 | 4.00 | % | 61,562 | 4.00 | % | 76,952 | 5.00 | % | 128,235 | 7.78 | % | 65,924 | 4.00 | % | 65,924 | 4.00 | % | 82,405 | 5.00 | % | ||||||||||||||||||||||||||||||||||||||||
Company | 137,956 | 8.93 | % | 61,777 | 4.00 | % | 61,777 | 4.00 | % | - | - | % | 134,656 | 8.14 | % | 66,147 | 4.00 | % | 66,147 | 4.00 | % | - | - | % | ||||||||||||||||||||||||||||||||||||||||
At December 31, 2015: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total risk based capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Republic | $ | 138,566 | 12.65 | % | $ | 87,617 | 8.00 | % | $ | - | - | % | $ | 109,521 | 10.00 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Company | 145,089 | 13.19 | % | 87,976 | 8.00 | % | - | - | % | - | - | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tier one risk based capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Republic | 129,863 | 11.86 | % | 65,712 | 6.00 | % | - | - | % | 87,617 | 8.00 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Company | 136,386 | 12.40 | % | 65,982 | 6.00 | % | - | - | % | - | - | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
CET 1 risk based capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Republic | 129,863 | 11.86 | % | 49,284 | 4.50 | % | - | - | % | 71,189 | 6.50 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Company | 114,586 | 10.42 | % | 49,487 | 4.50 | % | - | - | % | - | - | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tier one leveraged capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Republic | 129,863 | 9.22 | % | 56,328 | 4.00 | % | - | - | % | 70,410 | 5.00 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Company | 136,386 | 9.65 | % | 56,531 | 4.00 | % | - | - | % | - | - | % |
At December 31, 2015: | ||||||||||||||||||||||||||||||||
Total risk based capital | ||||||||||||||||||||||||||||||||
Republic | $ | 138,566 | 12.65 | % | $ | 87,617 | 8.00 | % | $ | - | - | % | $ | 109,521 | 10.00 | % | ||||||||||||||||
Company | 145,089 | 13.19 | % | 87,976 | 8.00 | % | - | - | % | - | - | % | ||||||||||||||||||||
Tier one risk based capital | ||||||||||||||||||||||||||||||||
Republic | 129,863 | 11.86 | % | 65,712 | 6.00 | % | - | - | % | 87,617 | 8.00 | % | ||||||||||||||||||||
Company | 136,386 | 12.40 | % | 65,982 | 6.00 | % | - | - | % | - | - | % | ||||||||||||||||||||
CET 1 risk based capital | ||||||||||||||||||||||||||||||||
Republic | 129,863 | 11.86 | % | 49,284 | 4.50 | % | - | - | % | 71,189 | 6.50 | % | ||||||||||||||||||||
Company | 114,586 | 10.42 | % | 49,487 | 4.50 | % | - | - | % | - | - | % | ||||||||||||||||||||
Tier one leveraged capital | ||||||||||||||||||||||||||||||||
Republic | 129,863 | 9.22 | % | 56,328 | 4.00 | % | - | - | % | 70,410 | 5.00 | % | ||||||||||||||||||||
Company | 136,386 | 9.65 | % | 56,531 | 4.00 | % | - | - | % | - | - | % |
June 30, 2016 | December 31, 2015 | September 30, 2016 | December 31, 2015 | |||||||||||||
Loans accruing, but past due 90 days or more | $ | - | $ | - | $ | 153 | $ | - | ||||||||
Non-accrual loans | 18,842 | 12,622 | 19,338 | 12,622 | ||||||||||||
Total non-performing loans | 18,842 | 12,622 | 19,491 | 12,622 | ||||||||||||
Other real estate owned | 11,974 | 11,313 | 10,271 | 11,313 | ||||||||||||
Total non-performing assets | $ | 30,816 | $ | 23,935 | $ | 29,762 | $ | 23,935 | ||||||||
Non-performing loans as a percentage of total loans, net of unearned income(1) | 2.03 | % | 1.44 | % | ||||||||||||
Non-performing assets as a percentage of total assets | 1.95 | % | 1.66 | % |
Non-performing loans as a percentage of total loans, net of unearned income(1) | 2.06 | % | 1.44 | % | ||||
Non-performing assets as a percentage of total assets | 1.72 | % | 1.66 | % |
(1) | Non-performing loans are comprised of (i) loans that are on non-accrual basis and (ii) accruing loans that are 90 days or more past due. Non-performing assets are composed of non-performing loans and other real estate owned. |
(dollars in thousands) | June 30, | December 31, | September 30, 2016 | December 31, 2015 | ||||||||||||
2016 | 2015 | |||||||||||||||
30 to 59 days past due | $ | - | $ | 2,878 | $ | - | $ | 2,878 | ||||||||
60 to 89 days past due | 1,108 | 9,315 | 781 | 9,315 | ||||||||||||
Total loans 30 to 89 days past due | $ | 1,108 | $ | 12,193 | $ | 781 | $ | 12,193 |
(dollars in thousands) | June 30, 2016 | December 31, 2015 | September 30, 2016 | December 31, 2015 | ||||||||||||
Beginning Balance, January 1st | $ | 11,313 | $ | 3,715 | $ | 11,313 | $ | 3,715 | ||||||||
Additions | 866 | 11,459 | 866 | 11,459 | ||||||||||||
Valuation adjustments | (129 | ) | (3,069 | ) | (521 | ) | (3,069 | ) | ||||||||
Dispositions | (76 | ) | (792 | ) | (1,387 | ) | (792 | ) | ||||||||
Ending Balance | $ | 11,974 | $ | 11,313 | $ | 10,271 | $ | 11,313 |
(dollars in thousands) | For the six months ended June 30, 2016 | For the twelve months ended December 31, 2015 | For the six months ended June 30, 2015 | For the nine months ended September 30, 2016 | For the twelve months ended December 31, 2015 | For the nine months ended September 30, 2015 | ||||||||||||||||||
Balance at beginning of period | $ | 8,703 | $ | 11,536 | $ | 11,536 | $ | 8,703 | $ | 11,536 | $ | 11,536 | ||||||||||||
Charge‑offs: | ||||||||||||||||||||||||
Chargeoffs: | ||||||||||||||||||||||||
Commercial real estate | - | 2,624 | 2,623 | - | 2,624 | 2,623 | ||||||||||||||||||
Construction and land development | - | 260 | 222 | 3 | 260 | 222 | ||||||||||||||||||
Commercial and industrial | 18 | 408 | 325 | 18 | 408 | 325 | ||||||||||||||||||
Owner occupied real estate | 954 | 133 | 55 | 954 | 133 | 133 | ||||||||||||||||||
Consumer and other | - | - | - | - | - | - | ||||||||||||||||||
Residential Mortgage | - | - | - | |||||||||||||||||||||
Total charge‑offs | 972 | 3,425 | 3,225 | |||||||||||||||||||||
Residential mortgage | - | - | - | |||||||||||||||||||||
Total chargeoffs | 975 | 3,425 | 3,303 | |||||||||||||||||||||
Recoveries: | ||||||||||||||||||||||||
Commercial real estate | 6 | 4 | 4 | 6 | 4 | 4 | ||||||||||||||||||
Construction and land development | - | 5 | 5 | - | 5 | 5 | ||||||||||||||||||
Commercial and industrial | 74 | 49 | 46 | 162 | 49 | 48 | ||||||||||||||||||
Owner occupied real estate | - | - | - | - | - | - | ||||||||||||||||||
Consumer and other | - | 34 | 32 | - | 34 | 33 | ||||||||||||||||||
Residential Mortgage | - | - | - | |||||||||||||||||||||
Residential mortgage | - | - | - | |||||||||||||||||||||
Total recoveries | 80 | 92 | 87 | 168 | 92 | 90 | ||||||||||||||||||
Net charge‑offs | 892 | 3,333 | 3,138 | |||||||||||||||||||||
Net chargeoffs | 807 | 3,333 | 3,213 | |||||||||||||||||||||
Provision for loan losses | 950 | 500 | - | 1,557 | 500 | - | ||||||||||||||||||
Balance at end of period | $ | 8,761 | 8,703 | $ | 8,398 | $ | 9,453 | $ | 8,703 | $ | 8,323 | |||||||||||||
Average loans outstanding(1) | $ | 904,387 | $ | 820,820 | $ | 797,846 | $ | 925,110 | $ | 820,820 | $ | 809,259 | ||||||||||||
As a percent of average loans:(1) | ||||||||||||||||||||||||
Net charge‑offs (annualized) | 0.20 | % | 0.41 | % | 0.79 | % | ||||||||||||||||||
Net chargeoffs (annualized) | 0.12 | % | 0.41 | % | 0.53 | % | ||||||||||||||||||
Provision for loan losses (annualized) | 0.21 | % | 0.06 | % | - | % | 0.22 | % | 0.06 | % | - | % | ||||||||||||
Allowance for loan losses | 0.97 | % | 1.06 | % | 1.05 | % | 1.02 | % | 1.06 | % | 1.03 | % | ||||||||||||
Allowance for loan losses to: | ||||||||||||||||||||||||
Total loans, net of unearned income | 0.94 | % | 0.99 | % | 1.02 | % | 1.00 | % | 0.99 | % | 0.98 | % | ||||||||||||
Total non‑performing loans | 46.50 | % | 68.95 | % | 51.73 | % | ||||||||||||||||||
Total nonperforming loans | 48.50 | % | 68.95 | % | 54.70 | % |
(1) | Includes non-accruing loans. |
(dollars in thousands) | September 30, 2016 | December 31, 2015 | ||||||
Total nonperforming loans | $ | 19,491 | $ | 12,622 | ||||
Nonperforming and impaired loans with partial charge-offs | 2,307 | 3,431 | ||||||
Ratio of nonperforming loans with partial charge-offs to total loans | 0.24 | % | 0.39 | % | ||||
Ratio of nonperforming loans with partial charge-offs to total nonperforming loans | 11.84 | % | 27.18 | % | ||||
Coverage ratio net of nonperforming loans with partial charge-offs | 409.75 | % | 253.66 | % |
(dollars in thousands) | June 30, 2016 | December 31, 2015 | ||||||
Total nonperforming loans | $ | 18,842 | $ | 12,622 | ||||
Nonperforming and impaired loans with partial charge-offs | 2,317 | 3,431 | ||||||
Ratio of nonperforming loans with partial charge-offs to total loans | 0.25 | % | 0.39 | % | ||||
Ratio of nonperforming loans with partial charge-offs to total nonperforming loans | 12.30 | % | 27.18 | % | ||||
Coverage ratio net of nonperforming loans with partial charge-offs | 378.12 | % | 253.66 | % |
Exhibit Number | Description | Location | ||
3.1 | Amended and Restated Articles of Incorporation of Republic First Bancorp, Inc. | Incorporated by reference to Form 8-K filed May 13, 2010 | ||
3.2 | Amended and Restated | Incorporated by reference to Form S-1 filed April 23, 2010 (333-166286) | ||
Limited Liability Company Purchase Agreement dated July 26, 2016 by and among, Republic First Bank d/b/a Republic Bank and Owners of Oak Mortgage Company, LLC. | Incorporated by reference to Form 8-K filed August 1, 2016 | |||
Rule 13a-14(a)/15d-14(a) Certification of Chairman and Chief Executive Officer of Republic First Bancorp, Inc. | ||||
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer of Republic First Bancorp, Inc. | ||||
Section 1350 Certification of Harry D. Madonna | ||||
Section 1350 Certification of Frank A. Cavallaro | ||||
101 | The following materials from the Company's Quarterly Report on Form 10-Q for the quarter ended | |||
REPUBLIC FIRST BANCORP, INC. | ||
Date: | By: | /s/ Harry D. Madonna |
Harry D. Madonna | ||
Chairman, President and Chief Executive Officer (principal executive officer) | ||
Date: | By: | /s/ Frank A. Cavallaro |
Frank A. Cavallaro | ||
Executive Vice President and Chief Financial Officer (principal financial and accounting officer) | ||