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PEOPLES BANCORP OF NORTH CAROLINA, INC. | ||||||
PROXY STATEMENT | ||||||
Table of Contents | ||||||
Pa | ge | |||||
Notice of 2016 Annual Meeting of Shareholders | iii | |||||
1 | ||||||
1 | ||||||
Security Ownership of Certain Beneficial Owners and Management | 5 | |||||
Section 16(a) Beneficial Ownership Reporting Compliance | 7 | |||||
Proposal 1 - Election of Directors | ||||||
7 | ||||||
Director Nominees | 8 | |||||
Executive Officers of the Company | 10 | |||||
How often did our Board of Directors meet during 2015? | 10 | |||||
10 | ||||||
10 | ||||||
Board Leadership Structure and Risk Oversight | 11 | |||||
Code of Business Conduct and Ethics | 11 | |||||
Diversity of the Board of Directors | 11 | |||||
How can a shareholder nominate someone for election to the Board of Directors? | 12 | |||||
Who serves on the Board of Directors of the Bank? | 12 | |||||
Board Committees | 12 | |||||
Executive Committee | 12 | |||||
Governance Committee | 12 | |||||
Audit and Enterprise Risk Committee | 13 | |||||
Compensation Discussion and Analysis | 14 | |||||
Summary Compensation Table | 17 | |||||
Grants of Plan-Based Awards | 19 | |||||
Outstanding Equity Awards at Fiscal Year End | 19 | |||||
Option Exercises and Stock Vested | 20 | |||||
Pension Benefits | 20 | |||||
Nonqualified Deferred Compensation | 21 | |||||
Employment Agreements | 21 | |||||
Potential Payments upon Termination or Change in Control | 22 | |||||
Omnibus Stock Option and Long Term Incentive Plan | ||||||
23 | ||||||
Director Compensation | 25 | |||||
Indebtedness of and Transactions with Management and Directors | 27 | |||||
Equity Compensation Plan Information | 28 |
Stock Performance Graph | 29 | ||||
Proposal 2 - Ratification of Selection of Independent Registered | |||||
30 | |||||
Audit Fees Paid to Independent Auditors | 30 | ||||
Proposal 3 - Advisory (Non-Binding) Proposal to Approve the Compensation of the Company's Named | |||||
Executive Officers | 31 | ||||
Date for Receipt of Shareholder Proposals | 31 | ||||
32 | |||
Miscellaneous | 32 | ||
Appendix A - Annual Report | 33 |
NOTICE OF | ||
To Be Held On May |
Place: | Catawba Country Club | ||
1154 Country Club Road | |||
Newton, North Carolina | |||
Date: | May | ||
Time: | 11:00 a.m., Eastern Time |
· | To elect ten persons who will serve as members of the Board of Directors until the |
· | To ratify the appointment of |
· | To participate in an advisory (non-binding) vote to approve the compensation of the Company's named executive officers, as disclosed in the Proxy Statement; and |
· | To consider and act on any other matters that may properly come before the Annual Meeting or any adjournment. |
When is the Annual Meeting? | May | ||
Where will the Annual Meeting be held? | At the Catawba Country Club, 1154 Country Club Road, | ||
Newton, North Carolina. | |||
What items will be voted on at the | |||
Annual Meeting? | 1. | ELECTION OF DIRECTORS. To elect ten directors to serve until the | |
2. | RATIFICATION OF SELECTION OF INDEPENDENT | ||
3. | PARTICIPATION IN ADVISORY VOTE ("SAY ON PAY"). To participate in an advisory (non-binding) vote to approve the compensation of the Company's named executive officers, as disclosed in this Proxy Statement. | ||
4. | OTHER BUSINESS. To consider any other business as may properly come before the Annual Meeting or any adjournment. | ||
Who can vote? | Only holders of record of our common stock at the close of business on March |
How do I vote by proxy? | You may vote your shares by marking, signing and dating the enclosed proxy card and returning it in the enclosed postage-paid envelope or by voting electronically over the Internet or by telephone using the information on the proxy card. If you return your signed proxy card before the Annual Meeting, the proxies will vote your shares as you direct. The Board of Directors has appointed proxies to represent shareholders who cannot attend the Annual Meeting in person. | |
For the election of directors, you may vote for (1) all of the nominees, (2) none of the nominees, or (3) all of the nominees except those you designate. If a nominee for election as a director becomes unavailable for election at any time at or before the Annual Meeting, the proxies will vote your shares for a substitute nominee. For each other item of business, you may vote "FOR" or "AGAINST" or you may "ABSTAIN" from voting. | ||
If you return your signed proxy card but do not specify how you want to vote your shares, the proxies will vote them "FOR" the election of all of our nominees for directors and "FOR" all other proposals presented in this Proxy Statement in accordance with recommendations from the Board of Directors. | ||
If your shares are held in the name of a broker or other nominee (i.e., held in "street name"), you will need to obtain a proxy instruction card from the broker holding your shares and return the card as directed by your broker. Your broker is not permitted to vote on your behalf on the election of directors unless you provide specific instructions by following the instructions from your broker about voting your shares by telephone or Internet or completing and returning the voting instruction card provided by your broker. For your vote to be counted in the election of directors and the advisory vote on executive compensation you now will need to communicate your voting decision to your bank, broker or | ||
We are not aware of any other matters to be brought before the Annual Meeting. If matters other than those discussed above are properly brought before the Annual Meeting, the proxies may vote your shares in accordance with their best judgment. |
How do I change or revoke my proxy? | You can change or revoke your proxy at any time before it is voted at the Annual Meeting in any of three ways: (1) by delivering a written notice of revocation to the Secretary of the Company; (2) by delivering another properly signed proxy card to the Secretary of the Company with a more recent date than your first proxy card or by changing your vote by telephone or the Internet; or (3) by attending the Annual Meeting and voting in person. You should deliver your written notice or superseding proxy to the Secretary of the Company at our principal executive offices listed above. |
How many votes can I cast? | You are entitled to one vote for each share held as of the Record Date on each nominee for election and each other matter presented for a vote at the Annual Meeting. You may not vote your shares cumulatively in the election of directors. | |
How many votes are required to approve the proposals? | If a quorum is present at the Annual Meeting, each director nominee will be elected by a plurality of the votes cast in person or by proxy. If you withhold your vote on a nominee, your shares will not be counted as having voted for that nominee. The proposal to ratify the appointment of the Company's independent registered public accounting firm for | |
The proposal to approve the compensation of the Company's named executive officers is advisory only; however, the Company's Compensation Committee will consider the outcome of the vote when evaluating compensation arrangements for executive compensation. | ||
Any other matters properly coming before the Annual Meeting for a vote will require the affirmative vote of the holders of a majority of the shares represented in person or by proxy at the Annual Meeting and entitled to vote on that matter. | ||
Abstentions and broker non-votes are not treated as votes cast on any proposal. As a result, neither will have an effect on the vote for the election of any director, | ||
In the event there are insufficient votes present at the Annual Meeting for a quorum or to approve or ratify any proposal, the Annual Meeting may be adjourned in order to permit the further solicitation of proxies. | ||
What constitutes a "quorum" for the Annual Meeting? | A majority of the outstanding shares of our common stock entitled to vote at the Annual Meeting, present in person or represented by proxy, constitutes a quorum (a quorum is necessary to conduct business at the Annual Meeting). Your shares will be considered part of the quorum if you have voted your shares by proxy or by telephone or Internet. Abstentions, broker non-votes and votes withheld from any director nominee count as shares present at the Annual Meeting for purposes of determining a quorum. | |
Who pays for the solicitation of proxies? | We will pay the cost of preparing, printing and mailing materials in connection with this solicitation of proxies. In addition to solicitation by mail, our officers, directors and regular employees, as well as those of the Bank, may make solicitations personally, by telephone or otherwise without additional compensation for doing so. We reserve the right to engage a proxy solicitation firm to assist in the solicitation of proxies for the Annual Meeting. We will, upon request, reimburse brokerage firms, banks and others for their reasonable out-of-pocket expenses in forwarding proxy materials to beneficial owners of stock or otherwise in connection with this solicitation of proxies. |
Name and Address of Beneficial Owner | Amount and Nature of Beneficial Ownership1 | Percent of Class2 | |
Christine S. Abernethy P.O. Box 386 Newton, NC 28658 | 660,4953 | ||
Tontine Financial Partners, LP 55 Railroad Avenue, 3rd Floor Greenwich, CT 06830-6378 | 373,3044 | 6.77% | |
Tontine Management, LLC 55 Railroad Avenue Greenwich, CT 06830 | |||
Tontine Asset Associates, LLC 55 Railroad Avenue Greenwich, CT 06830 | 141,3614 | ||
Jeffrey L. Gendell 55 Railroad Avenue Greenwich, CT 06830 |
1 | Unless otherwise noted, all shares are owned directly of record by the named individuals, by their spouses and minor children, or by other entities controlled by the named individuals. Voting and investment power is not shared unless otherwise indicated. |
2 | Based upon a total of |
3 | Carolina Glove Company, Inc. owns 107,604 shares of common stock. These shares are included in the calculation of Ms. |
4 | Based on a Schedule 13G/A (Amendment No. |
Amount and Nature | Percentage | |||
of Beneficial | of | |||
Name and Address | Ownership1 | Class2 | ||
James S. Abernethy | 171,6043 | 3.11% | ||
Post Office Box 327 | ||||
Newton, NC 28658 | ||||
Robert C. Abernethy | 2.83% | |||
Post Office Box 366 | ||||
Newton, NC 28658 | ||||
Joseph F. Beaman, Jr. | 8,5235 | * | ||
Post Office Box 467 | ||||
Newton, NC 28658 | ||||
William D. Cable, Sr. | * | |||
Post Office Box 467 | ||||
Newton, NC 28658 | ||||
Douglas S. Howard | * | |||
Post Office Box 587 | ||||
Denver, NC 28037 | ||||
A. Joseph Lampron, Jr. | * | |||
Post Office Box 467 | ||||
Newton, NC 28658 | ||||
John W. Lineberger, Jr. | 2,326 | * | ||
Post Office Box 481 | ||||
Lincolnton, NC 28092 | ||||
Gary E. Matthews | * | |||
210 First Avenue South | ||||
Conover, NC 28613 | ||||
Billy L. Price, Jr., M.D. | * | |||
540 11th Ave. Place NW | ||||
Hickory, NC 28601 | ||||
Larry E. Robinson | * | |||
Post Office Box 723 | ||||
Newton, NC 28658 | ||||
Lance A. Sellers | * | |||
Post Office Box 467 | ||||
Newton, NC 28658 | ||||
William Gregory Terry | * | |||
Post Office Box 395 | ||||
Conover, NC 28613 | ||||
Dan Ray Timmerman, Sr. | 1.60% | |||
Post Office Box 1148 | ||||
Conover, NC 28613 | ||||
Benjamin I. Zachary | 1.68% | |||
Post Office Box 277 | ||||
Taylorsville, NC 28681 |
All current directors and nominees and | 10.95% | ||
executive officers as a group (14 people) |
1 | Unless otherwise noted, all shares are owned directly of record by the named individuals, by their spouses and minor children, or by other entities controlled by the named individuals. Voting and investment power is not shared unless otherwise indicated. |
2 | Based upon a total of |
3 | Includes 64,038 shares of common stock owned by Alexander Railroad Company. Mr. J. Abernethy is Vice President, Secretary and Chairman of the Board of Directors of Alexander Railroad Company. |
4 | Includes |
5 | Mr. Beaman retired on June 30, 2015. As such, the amount shown above represents Mr. Beaman's beneficial ownership as of June 30, 2015. |
6 | Includes 450 shares of common stock owned by Mr. |
Includes 8,835 shares of common stock owned by Mr. |
Includes 2,722 shares of common stock owned by Timmerman Manufacturing, Inc. Mr. Timmerman is a shareholder, director, Chairman of the Board and the Chief Executive Officer of Timmerman Manufacturing, Inc. |
Includes 64,038 shares of common stock owned by Alexander Railroad Company. Mr. Zachary is President, Treasurer, General Manager and a Director of Alexander Railroad Company. |
The 64,038 shares owned by Alexander Railroad Company and attributed to Mr. J. Abernethy and Mr. Zachary are only included once in calculating this total. |
Robert C. Abernethy | Dan R. Timmerman, Sr. | ||
Benjamin I. Zachary Douglas S. Howard | Billy L Price, Jr. MD, Committee Chair |
· | compensation of the comparable executives at comparable financial institutions; |
· | financial performance of the Company (especially on a "net operating" basis, which excludes the effect of one-time gains and expenses) over the most recent fiscal year and the prior three years; |
· | composition of earnings; |
· | asset quality relative to the banking industry; |
· | responsiveness to the economic environment; |
· | the Company's achievement compared to its corporate, financial, strategic and operational objectives and business plans; and |
· | cumulative shareholder return. |
DIRECTOR COMPENSATION | |||||||
Change in | |||||||
Pension Value | |||||||
and | |||||||
Fees | Nonqualified | ||||||
Earned or | Non-Equity | Deferred | |||||
Paid in | Stock | Option | Incentive Plan | Compensation | All Other | ||
Name | Cash ($) | Awards1 ($) | Awards ($) | Compensation ($) | Earnings2 ($) | Compensation ($) | Total ($) |
James S. Abernethy | 20,300 | 11,693 | 0 | 0 | 5,799 | 0 | 37,792 |
Robert C. Abernethy | 30,950 | 11,693 | 0 | 0 | 8,781 | 0 | 51,424 |
Douglas S. Howard | 24,800 | 11,693 | 0 | 0 | 3,600 | 650 | 40,743 |
John W. Lineberger, Jr. | 20,800 | 11,693 | 0 | 0 | 8,552 | 650 | 41,695 |
Gary E. Matthews | 20,300 | 11,693 | 0 | 0 | 5,258 | 0 | 37,251 |
Billy L. Price, Jr., M.D. | 27,025 | 11,693 | 0 | 0 | 4,755 | 650 | 44,124 |
Larry E. Robinson | 21,300 | 11,693 | 0 | 0 | 15,890 | 0 | 48,883 |
William Gregory Terry | 20,800 | 11,693 | 0 | 0 | 1,762 | 650 | 34,905 |
Dan Ray Timmerman, Sr. | 26,825 | 11,693 | 0 | 0 | 12,373 | 0 | 50,891 |
Benjamin I. Zachary | 24,300 | 11,693 | 0 | 0 | 4,776 | 0 | 40,769 |
Name and Principal Position | Year | Salary($) | Bonus($) | Stock Awards($)2 | Change in Pension Value and Nonqualified Deferred Compensation Earnings($) | All Other Compensation($)3 | Total($) | |
Lance A. Sellers | 2015 | 311,400 | 30,000 | 39,893 | 52,507 | 28,175 | 461,975 | |
President and Chief Executive | 2014 | 311,400 | 30,000 | 61,230 | 54,638 | 25,020 | 482,288 | |
Officer | 2013 | 311,400 | 20,000 | 58,013 | 40,072 | 25,553 | 455,038 | |
A. Joseph Lampron, Jr. | 2015 | 193,125 | 30,000 | 29,920 | 93,827 | 20,474 | 367,346 | |
Executive Vice President, | 2014 | 187,500 | 30,000 | 42,830 | 57,767 | 17,076 | 335,173 | |
Chief Financial Officer | 2013 | 182,963 | 20,000 | 40,579 | 47,082 | 12,875 | 303,499 | |
Joseph F. Beaman, Jr. | 20151 | 70,350 | 75,000 | 0 | 0 | 26,149 | 171,499 | |
Executive Vice President, | 2014 | 140,700 | 15,000 | 0 | 45,377 | 16,922 | 217,999 | |
Chief Administrative Officer | 2013 | 140,700 | 15,000 | 0 | 64,566 | 15,594 | 235,860 | |
and Corporate Secretary | ||||||||
William D. Cable, Sr. | 2015 | 198,750 | 30,000 | 29,920 | 20,619 | 24,772 | 304,061 | |
Executive Vice President, | 2014 | 187,500 | 30,000 | 42,830 | 20,599 | 18,385 | 299,314 | |
Chief Operating Officer | 2013 | 182,963 | 20,000 | 40,579 | 13,877 | 11,444 | 268,863 |
Summary Compensation Table | |||||||||||||||||
Name and Principal Position | Year | Salary($) | Bonus($) | Stock Awards($) | Option Awards($) | Non-Equity Incentive Plan Compensation($) | Change in Pension Value and Nonqualified Deferred Compensation Earnings($) | All Other Compensation($)1 | Total($) | ||||||||
Lance A. Sellers | 2014 | 311,400 | 30,000 | 88,734 | 0 | 0 | 54,638 | 25,020 | 509,792 | ||||||||
President and Chief Executive | 2013 | 311,400 | 20,000 | 44,506 | 0 | 0 | 40,072 | 24,557 | 440,535 | ||||||||
Officer | |||||||||||||||||
A. Joseph Lampron, Jr. | 2014 | 187,500 | 30,000 | 63,561 | 0 | 0 | 57,767 | 17,076 | 355,904 | ||||||||
Executive Vice President, | 2013 | 182,963 | 20,000 | 31,328 | 0 | 0 | 47,082 | 12,875 | 294,248 | ||||||||
Chief Financial Officer | |||||||||||||||||
Joseph F. Beaman, Jr. | 2014 | 140,700 | 15,000 | 0 | 0 | 0 | 45,377 | 16,922 | 217,999 | ||||||||
Executive Vice President, | 2013 | 140,700 | 15,000 | 0 | 0 | 0 | 64,566 | 15,594 | 235,860 | ||||||||
Chief Administrative Officer | |||||||||||||||||
and Corporate Secretary | |||||||||||||||||
William D. Cable, Sr. | 2014 | 187,500 | 30,000 | 63,561 | 0 | 0 | 20,599 | 18,385 | 320,045 | ||||||||
Executive Vice President, | 2013 | 182,963 | 20,000 | 31,328 | 0 | 0 | 13,877 | 11,444 | 259,611 | ||||||||
Chief Operating Officer |
Name and Principal | Year | Employer Match($) | Car Allowance($) | Country Club Dues($) | Split Dollar Death Benefit($) | Group Term Life($)(a) | Disability and LTC Premiums($)(b) | Other($) | |||||||
Lance A. Sellers President and Chief Executive Officer | 2015 2014 2013 | 10,600 10,400 10,200 | 4,113 4,113 4,113 | 3,506 3,455 3,199 | 454 418 396 | 4,104 1,242 1,219 | 5,398 5,392 5,151 | 0 1,275(c) | |||||||
A. Joseph Lampron, Jr. Executive Vice President, Chief Financial Officer | 2015 2014 2013 | 8,628 8,279 7,107 | 0 0 0 | 3,300 3,280 3,241 | 1,056 978 904 | 5,506 2,555 1,623 | 1,984 1,984 0 | 0 0 0 | |||||||
Joseph F. Beaman, Jr.(d) Executive Vice President, Chief Administrative Officer and Corporate Secretary | 2015 2014 2013 | 6,847 6,228 5,466 | 0 0 0 | 1,704 3,360 | 1,863 1,713 1,585 | 2,164 2,337 1,836 | 1,707 3,284 3,284 | 11,864(e) 0 0 | |||||||
William D. Cable, Sr. Executive Vice President, Chief Operating Officer | 2015 2014 | 9,150 8,279 7,107 | 0 0 0 | 3,452 3,360 3,423 | 377 349 322 | 3,477 581 592 | 5,816 5,816 0 | 2,500(f) 0 0 |
(a) | Represents amounts paid by the Bank for premiums on group term life insurance in excess of $50,000 for each named executive officer. |
(b) | Represents amounts paid by the Bank for premiums on disability and long-term care insurance for each NEO. |
(c ) | In 2013, Mr. Sellers received 76 shares for 15 years of service with the Bank and $279 in cash to pay the taxes associated with the award under the Bank's Service Recognition Program |
(d) | Mr. Beaman retired on June 30, 2015. As a result, the amounts reflected above for the fiscal year ending December 31, 2015 represent amounts earned by Mr. Beaman from January 1, 2015 through June 30, 2015. |
(e) | Represents amounts paid to Mr. Beaman pursuant to his Executive Salary Continuation Agreement. |
(f ) | In 2015, Mr. Cable received 106 shares for 20 years of service with the Bank and $513 in cash to pay the taxes associated with the award under the Bank's Service Recognition Program. |
Estimated Future Payouts Under Equity Incentive Plan Awards | |||||||||||||||||||||||
Name | Grant Date | Threshold (#) | Target (#) | Maximum (#) | All Other Stock Awards: Number of Shares of Stock or Units (#) | All Other Option Awards: Number of Securities Under- lying Options (#) | Exercise or Base Price of Option Awards ($/Sh) | Grant Date Fair Value of Stock and Option Awards ($) | |||||||||||||||
Lance A. Sellers | February 19, 2015 | -- | -- | -- | 2,200(1) | -- | -- | $ | 17.97 | ||||||||||||||
A. Joseph Lampron, Jr. | February 19, 2015 | -- | -- | -- | 1,665(1) | -- | -- | $ | 17.97 | ||||||||||||||
William D. Cable, Sr. | February 19, 2015 | -- | -- | -- | 1,665(1) | -- | -- | $ | 17.97 | ||||||||||||||
Joseph F. Beaman, Jr. | -- | -- | -- | -- |
Stock Awards | ||||
Name | Number of Shares or Units of Stock That Have Not Vested (#) | Market Value of Shares or Units of Stock That Have Not Vested ($) | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested(3) ($) |
Lance A. Sellers | -- | -- | 19,669(1) | 380,398 |
A. Joseph Lampron, Jr. | -- | -- | 14,173(2) | 274,106 |
William D. Cable, Sr. | -- | -- | 14,173(2) | 274,106 |
Joseph F. Beaman, Jr. | -- | -- | -- | -- |
(1) | Includes 6,505 restricted stock units that were granted on March 22, 2012 and vest on March 22, 2017; 2,169 restricted stock units that were granted on July 26, 2012 and vest on July 26, 2017; 4,875 restricted stock units that were granted on May 23, 2013 and vest on May 23, 2017; 3,900 restricted stock units that were granted on February 20, 2014 and vest on February 20, 2017; and 2,200 restricted stock units that were granted on February 19, 2015 and vest on February 19, 2019. |
(2) | Includes 4,777 restricted stock units that were granted on March 22, 2012 and vest on March 22, 2017; 1,593 restricted stock units that were granted on July 26, 2012 and vest on July 26, 2017 and 3,410 restricted stock units that were granted on May 23, 2013 and vest on May 23, 2017; 2,728 restricted stock units that were granted on February 20, 2014 and vest on February 20, 2017; and 1,665 restricted stock units that were granted on February 19, 2015 and vest on February 19, 2019. |
(3) | Based on a stock price of $19.34 per share on December 31, 2015. |
PENSION BENEFITS TABLE | ||||
Name | Plan Name | Number of Years Credited Service | Present Value of Accumulated Benefit($) | Payments During Last Fiscal Year($) |
Lance A. Sellers | Executive Salary Continuation Agreement1 | 14 | 313,302 | -- |
A. Joseph Lampron, Jr. | Executive Salary Continuation Agreement1,2 | 14 | 422,182 | -- |
William D. Cable, Sr. | Executive Salary Continuation Agreement1 | 14 | 104,152 | -- |
Joseph F. Beaman, Jr. | Executive Salary Continuation Agreement1 | 13 | 290,498 | 14,021 |
Name | Executive Contributions in the Last FY ($)(1) | Registrant Contributions In Last FY ($) | Aggregate Earnings in Last FY ($)(2) | Aggregate Withdrawals/ Distributions ($) | Aggregate Balance at Last FYE ($)(3) | ||||
A. Joseph Lampron, Jr. | 5,794 | -- | 10,873 | 0 | 132,767 | ||||
William D. Cable, Sr. | 15,900 | -- | 17,526 | 0 | 321,634 | ||||
Joseph F. Beaman, Jr. | 700 | -- | 2,378 | 0 | 29,020 | ||||
(1) | The above contributions were based on the named executive officer's deferral elections and the salaries shown in the Summary Compensation Table. The salaries in the Summary Compensation Table include these contributions. |
(2) | This column reflects earnings or losses on plan balances in 2015. Earnings may increase or decrease depending on the performance of the elected hypothetical investment options. Earnings on these plans are not "above-market" and thus are not reported in the Summary Compensation Table. Plan balances may be hypothetically invested in various mutual funds and common stock as described below. Investment returns on those funds and common stock ranged from -12.15% to 9.12% for the year ended December 31, 2015. |
(3) | This column represents the year-end balances of the named executive officer's nonqualified deferred compensation accounts. These balances include contributions that were included in the Summary Compensation Tables in previous years. Amounts in this column include earnings that were not previously reported in the Summary Compensation Table because they were not "above-market" earnings. |
Name | Fees Earned or Paid in Cash ($) | Stock Awards1 ($) | Option Awards ($) | Non-Equity Incentive Plan Compensation ($) | Change in Pension Value and Nonqualified Deferred Compensation Earnings2 ($) | All Other Compensation ($) | Total ($) |
James S. Abernethy | 26,700 | 6,739 | 0 | 0 | 6,314 | 0 | 39,753 |
Robert C. Abernethy | 41,500 | 6,739 | 0 | 0 | 9,561 | 0 | 57,800 |
Douglas S. Howard | 34,700 | 6,739 | 0 | 0 | 3,920 | 0 | 45,359 |
John W. Lineberger, Jr. | 25,200 | 6,739 | 0 | 0 | 9,312 | 0 | 41,251 |
Gary E. Matthews | 24,700 | 6,739 | 0 | 0 | 5,725 | 0 | 37,164 |
Billy L. Price, Jr., M.D. | 35,975 | 6,739 | 0 | 0 | 5,178 | 0 | 47,892 |
Larry E. Robinson | 27,200 | 6,739 | 0 | 0 | 6,279 | 0 | 40,218 |
William Gregory Terry | 26,700 | 6,739 | 0 | 0 | 1,919 | 0 | 35,358 |
Dan Ray Timmerman, Sr. | 33,000 | 6,739 | 0 | 0 | 13,472 | 2,5003 | 55,711 |
Benjamin I. Zachary | 28,700 | 6,739 | 0 | 0 | 5,201 | 2,5003 | 43,140 |
1 | The amounts reported represent the aggregate fair value of the restricted stock units granted to the respective recipient on the date of grant under Financial Accounting Standards Board ASC Topic 718 ("Topic 718"). The fair market value of each restricted stock unit granted to each director was $17.97 on February 19, 2015. At December 31, 2015, each director had an aggregate of 2,645 restricted stock units outstanding with an aggregate fair value of $51,154 based on the fair market value of each restricted stock unit of $19.34 at December 31, 2015. |
2 | Change in Pension Value and Nonqualified Deferred Compensation Earnings represents the expense accrued by the Bank for each director under the Directors' Supplemental Retirement Plan as described above. |
3 | In 2015, Directors Timmerman and Zachary each received 106 shares of the Company's common stock and $512.50 in cash for their 20 years of service as a director under the Bank's Service Recognition Program. |
Plan Category | Number of securities to be issued upon exercise of outstanding option, warrants and rights (1), (2), (3), (4) | Weighted-average exercise price of outstanding options, warrants and rights (5) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (6) | |||
(a) | (b) | (c) | ||||
Equity compensation plans approved by security holders | 92,440 | $ | 19.34 | 267,560 | ||
Equity compensation plans not approved by security holders | - | - | - | |||
Total | 92,440 | $ | 19.34 | 267,560 | ||
(1) Includes 24,159 restricted stock units granted on March 22, 2012 and 5,355 restricted stock units granted on July 26, 2012 under the February 19, 2009 Omnibus Stock Ownership and Long Term Incentive Plan (the "2009 Omnibus Plan"). These restricted stock grants vest five years after issuance. | ||||||
(2) Includes 26,795 restricted stock units granted on May 23, 2013 under the 2009 Omnibus Plan. These restricted stock grants vest on May 23, 2017. | ||||||
(3) Includes 21,056 restricted stock units granted on February 20, 2014 under the 2009 Omnibus Plan. These restricted stock grants vest on February 20, 2017. | ||||||
(4) Includes 15,075 restricted stock units granted on February 19, 2015 under the 2009 Omnibus Plan. These restricted stock grants vest on February 19, 2019. | ||||||
(5) The exercise price used for the grants of restricted stock units under the 2009 Omnibus Plan is $19.34, the closing price for the Company's stock on December 31, 2014. | ||||||
(6) Reflects shares currently reserved for possible issuance under the 2009 Omnibus Plan. |
Year Ended December 31 | |||||||
2015 | 2014 | ||||||
Audit Fees1 | $ | 193,000 | $ | 186,000 | |||
Audit-Related Fees2 | $ | 19,000 | $ | 59,000 | |||
Tax Fees3 | $ | 45,000 | $ | 24,000 | |||
All Other Fees | -- | -- | |||||
SELECTED FINANCIAL DATA | ||||||||||||||||||||
Dollars in Thousands Except Per Share Amounts | ||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||
Summary of Operations | ||||||||||||||||||||
Interest income | $ | 38,666 | 38,420 | 36,696 | 39,245 | 45,259 | ||||||||||||||
Interest expense | 3,484 | 4,287 | 5,353 | 7,696 | 10,946 | |||||||||||||||
Net interest income | 35,182 | 34,133 | 31,343 | 31,549 | 34,313 | |||||||||||||||
Provision for loan losses | (17 | ) | (699 | ) | 2,584 | 4,924 | 12,632 | |||||||||||||
Net interest income after provision | ||||||||||||||||||||
for loan losses | 35,199 | 34,832 | 28,759 | 26,625 | 21,681 | |||||||||||||||
Non-interest income | 13,312 | 12,164 | 12,652 | 12,537 | 14,513 | |||||||||||||||
Non-interest expense | 35,778 | 35,671 | 32,841 | 31,782 | 29,572 | |||||||||||||||
Earnings before income taxes | 12,733 | 11,325 | 8,570 | 7,380 | 6,622 | |||||||||||||||
Income tax expense | 3,100 | 1,937 | 1,879 | 1,587 | 1,463 | |||||||||||||||
Net earnings | 9,633 | 9,388 | 6,691 | 5,793 | 5,159 | |||||||||||||||
Dividends and accretion of preferred stock | - | - | 656 | 1,010 | 1,393 | |||||||||||||||
Net earnings available to common | ||||||||||||||||||||
shareholders | $ | 9,633 | 9,388 | 6,035 | 4,783 | 3,766 | ||||||||||||||
Selected Year-End Balances | ||||||||||||||||||||
Assets | $ | 1,038,481 | 1,040,494 | 1,034,684 | 1,013,516 | 1,067,063 | ||||||||||||||
Investment securities available for sale | 268,530 | 281,099 | 297,890 | 297,823 | 321,388 | |||||||||||||||
Net loans | 679,502 | 640,809 | 607,459 | 605,551 | 653,893 | |||||||||||||||
Mortgage loans held for sale | 4,149 | 1,375 | 497 | 6,922 | 5,146 | |||||||||||||||
Interest-earning assets | 977,079 | 956,900 | 925,736 | 931,738 | 1,004,131 | |||||||||||||||
Deposits | 832,175 | 814,700 | 799,361 | 781,525 | 827,111 | |||||||||||||||
Interest-bearing liabilities | 660,937 | 717,991 | 715,111 | 745,139 | 820,452 | |||||||||||||||
Shareholders' equity | $ | 104,864 | 98,665 | 83,719 | 97,747 | 103,027 | ||||||||||||||
Shares outstanding | 5,510,538 | 5,612,588 | 5,613,495 | 5,613,495 | 5,544,160 | |||||||||||||||
Selected Average Balances | ||||||||||||||||||||
Assets | $ | 1,038,594 | 1,036,486 | 1,023,609 | 1,029,612 | 1,074,250 | ||||||||||||||
Investment securities available for sale | 266,830 | 287,371 | 293,770 | 289,010 | 295,413 | |||||||||||||||
Net loans | 669,628 | 631,025 | 614,532 | 648,595 | 697,527 | |||||||||||||||
Interest-earning assets | 952,251 | 949,537 | 950,451 | 965,994 | 1,015,451 | |||||||||||||||
Deposits | 816,628 | 808,399 | 787,640 | 786,976 | 835,550 | |||||||||||||||
Interest-bearing liabilities | 707,610 | 731,786 | 741,228 | 770,546 | 836,382 | |||||||||||||||
Shareholders' equity | $ | 106,644 | 96,877 | 100,241 | 103,805 | 102,568 | ||||||||||||||
Shares outstanding | 5,559,235 | 5,615,666 | 5,613,495 | 5,559,401 | 5,542,548 | |||||||||||||||
Profitability Ratios | ||||||||||||||||||||
Return on average total assets | 0.93 | % | 0.91 | % | 0.65 | % | 0.56 | % | 0.48 | % | ||||||||||
Return on average shareholders' equity | 9.03 | % | 9.69 | % | 6.67 | % | 5.58 | % | 5.03 | % | ||||||||||
Dividend payout ratio* | 16.12 | % | 10.76 | % | 11.17 | % | 20.96 | % | 11.78 | % | ||||||||||
Liquidity and Capital Ratios (averages) | ||||||||||||||||||||
Loan to deposit | 82.00 | % | 78.06 | % | 78.02 | % | 82.42 | % | 83.48 | % | ||||||||||
Shareholders' equity to total assets | 9.34 | % | 9.24 | % | 9.79 | % | 10.08 | % | 9.55 | % | ||||||||||
Per share of Common Stock | ||||||||||||||||||||
Basic net earnings | $ | 1.73 | 1.67 | 1.08 | 0.86 | 0.68 | ||||||||||||||
Diluted net earnings | $ | 1.72 | 1.66 | 1.07 | 0.86 | 0.68 | ||||||||||||||
Cash dividends | $ | 0.28 | 0.18 | 0.12 | 0.18 | 0.08 | ||||||||||||||
Book value | $ | 19.03 | 17.58 | 14.91 | 15.18 | 14.06 | ||||||||||||||
*As a percentage of net earnings available to common shareholders. |
SELECTED FINANCIAL DATA | |||||||||||
Dollars in Thousands Except Per Share Amounts | |||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | |||||||
Summary of Operations | |||||||||||
Interest income | $ | 38,420 | 36,696 | 39,245 | 45,259 | 47,680 | |||||
Interest expense | 4,287 | 5,353 | 7,696 | 10,946 | 14,348 | ||||||
Net interest earnings | 34,133 | 31,343 | 31,549 | 34,313 | 33,332 | ||||||
Provision for loan losses | (699 | ) | 2,584 | 4,924 | 12,632 | 16,438 | |||||
Net interest earnings after provision | |||||||||||
for loan losses | 34,832 | 28,759 | 26,625 | 21,681 | 16,894 | ||||||
Non-interest income | 12,164 | 12,652 | 12,537 | 14,513 | 13,884 | ||||||
Non-interest expense | 35,671 | 32,841 | 31,782 | 29,572 | 28,948 | ||||||
Earnings before taxes | 11,325 | 8,570 | 7,380 | 6,622 | 1,830 | ||||||
Income taxes | 1,937 | 1,879 | 1,587 | 1,463 | (11 | ) | |||||
Net earnings | 9,388 | 6,691 | 5,793 | 5,159 | 1,841 | ||||||
Dividends and accretion of preferred stock | - | 656 | 1,010 | 1,393 | 1,394 | ||||||
Net earnings available to common | |||||||||||
shareholders | $ | 9,388 | 6,035 | 4,783 | 3,766 | 447 | |||||
Selected Year-End Balances | |||||||||||
Assets | $ | 1,040,494 | 1,034,684 | 1,013,516 | 1,067,063 | 1,067,652 | |||||
Available for sale securities | 281,099 | 297,890 | 297,823 | 321,388 | 272,449 | ||||||
Loans, net | 640,809 | 607,459 | 605,551 | 653,893 | 710,667 | ||||||
Mortgage loans held for sale | 1,375 | 497 | 6,922 | 5,146 | 3,814 | ||||||
Interest-earning assets | 956,900 | 925,736 | 931,738 | 1,004,131 | 1,010,983 | ||||||
Deposits | 814,700 | 799,361 | 781,525 | 827,111 | 838,712 | ||||||
Interest-bearing liabilities | 717,991 | 715,111 | 745,139 | 820,452 | 850,233 | ||||||
Shareholders' equity | $ | 98,665 | 83,719 | 97,747 | 103,027 | 96,858 | |||||
Shares outstanding | 5,612,588 | 5,613,495 | 5,613,495 | 5,544,160 | 5,541,413 | ||||||
Selected Average Balances | |||||||||||
Assets | $ | 1,036,486 | 1,023,609 | 1,029,612 | 1,074,250 | 1,078,136 | |||||
Available for sale securities | 287,371 | 293,770 | 289,010 | 295,413 | 219,797 | ||||||
Loans | 631,025 | 614,532 | 648,595 | 697,527 | 757,532 | ||||||
Interest-earning assets | 949,537 | 950,451 | 965,994 | 1,015,451 | 999,054 | ||||||
Deposits | 808,399 | 787,640 | 786,976 | 835,550 | 840,343 | ||||||
Interest-bearing liabilities | 731,786 | 741,228 | 770,546 | 836,382 | 849,870 | ||||||
Shareholders' equity | $ | 95,759 | 100,241 | 103,805 | 102,568 | 101,529 | |||||
Shares outstanding | 5,615,666 | 5,613,495 | 5,559,401 | 5,542,548 | 5,539,308 | ||||||
Profitability Ratios | |||||||||||
Return on average total assets | 0.91% | 0.65% | 0.56% | 0.48% | 0.17% | ||||||
Return on average shareholders' equity | 9.69% | 6.67% | 5.58% | 5.03% | 1.81% | ||||||
Dividend payout ratio* | 10.88% | 11.17% | 20.96% | 11.78% | 100.11% | ||||||
Liquidity and Capital Ratios (averages) | |||||||||||
Loan to deposit | 78.06% | 78.02% | 82.42% | 83.48% | 90.15% | ||||||
Shareholders' equity to total assets | 9.24% | 9.79% | 10.08% | 9.55% | 9.42% | ||||||
Per share of Common Stock | |||||||||||
Basic net income | $ | 1.67 | 1.08 | 0.86 | 0.68 | 0.08 | |||||
Diluted net income | $ | 1.66 | 1.07 | 0.86 | 0.68 | 0.08 | |||||
Cash dividends | $ | 0.18 | 0.12 | 0.18 | 0.08 | 0.08 | |||||
Book value | $ | 17.58 | 14.91 | 15.18 | 14.06 | 12.96 | |||||
*As a percentage of net earnings available to common shareholders. |
Table 1- Average Balance Table | |||||||||||||||||||
December 31, 2015 | December 31, 2014 | December 31, 2013 | |||||||||||||||||
(Dollars in thousands) | Average Balance | Interest | Yield / Rate | Average Balance | Interest | Yield / Rate | Average Balance | Interest | Yield / Rate | ||||||||||
Interest-earning assets: | |||||||||||||||||||
Interest and fees on loans | $ | 669,628 | 31,098 | 4.64% | 631,025 | 30,305 | 4.80% | 614,532 | 30,194 | 4.91% | |||||||||
Investments - taxable | 89,998 | 2,240 | 2.49% | 120,038 | 2,840 | 2.37% | 141,143 | 1,544 | 1.09% | ||||||||||
Investments - nontaxable* | 181,382 | 7,634 | 4.21% | 172,662 | 7,561 | 4.38% | 158,535 | 7,070 | 4.46% | ||||||||||
Other | 11,243 | 26 | 0.23% | 25,812 | 65 | 0.25% | 36,241 | 85 | 0.23% | ||||||||||
Total interest-earning assets | 952,251 | 40,998 | 4.31% | 949,537 | 40,771 | 4.29% | 950,451 | 38,893 | 4.09% | ||||||||||
Cash and due from banks | 42,483 | 47,614 | 36,080 | ||||||||||||||||
Other assets | 59,222 | 56,571 | 54,262 | ||||||||||||||||
Allowance for loan losses | (10,678 | ) | (12,905 | ) | (14,161 | ) | |||||||||||||
Total assets | $ | 1,043,278 | 1,040,817 | 1,026,632 | |||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||
NOW, MMDA & savings deposits | $ | 418,358 | 432 | 0.10% | 392,822 | 499 | 0.13% | 376,457 | 732 | 0.19% | |||||||||
Time deposits | 173,622 | 870 | 0.50% | 208,194 | 1,188 | 0.57% | 230,880 | 1,650 | 0.71% | ||||||||||
FHLB / FRB borrowings | 49,840 | 1,735 | 3.48% | 63,712 | 2,166 | 3.40% | 69,740 | 2,518 | 3.6%1 | ||||||||||
Trust preferred securities | 20,619 | 402 | 1.95% | 20,619 | 389 | 1.89% | 20,619 | 398 | 1.93% | ||||||||||
Other | 45,172 | 45 | 0.10% | 46,439 | 45 | 0.10% | 43,532 | 55 | 0.13% | ||||||||||
Total interest-bearing liabilities | 707,611 | 3,484 | 0.49% | 731,786 | 4,287 | 0.59% | 741,228 | 5,353 | 0.72% | ||||||||||
Demand deposits | 224,648 | 207,383 | 180,303 | ||||||||||||||||
Other liabilities | 4,375 | 4,771 | 4,860 | ||||||||||||||||
Shareholders' equity | 106,644 | 96,877 | 100,241 | ||||||||||||||||
Total liabilities and shareholder's equity | $ | 1,043,278 | 1,040,817 | 1,026,632 | |||||||||||||||
Net interest spread | 37,514 | 3.82% | 36,484 | 3.70% | 33,540 | 3.37% | |||||||||||||
Net yield on interest-earning assets | 3.94% | 3.84% | 3.53% | ||||||||||||||||
Taxable equivalent adjustment | |||||||||||||||||||
Investment securities | 2,332 | 2,351 | 2,197 | ||||||||||||||||
Net interest income | 35,182 | 34,133 | 31,343 | ||||||||||||||||
*Includes U.S. Government agency securities that are non-taxable for state income tax purposes of $37.3 million in 2015, $26.0 million in 2014 and $20.2 million in 2013. Tax rates of 5.00%, 6.00% and 6.90% were used to calculate the tax equivalent yields on these securities in 2015, 2014 and 2013, respectively. |
Table 1- Average Balance Table | ||||||||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | ||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest | Yield / Rate | Average Balance | Interest | Yield / Rate | Average Balance | Interest | Yield / Rate | |||||||||||
Interest-earning assets: | ||||||||||||||||||||
Interest and fees on loans | $ | 631,025 | 30,305 | 4.80% | 614,532 | 30,194 | 4.91% | 648,595 | 32,758 | 5.05% | ||||||||||
Investments - taxable | 120,038 | 2,840 | 2.37% | 141,143 | 1,544 | 1.09% | 188,625 | 2,901 | 1.54% | |||||||||||
Investments - nontaxable* | 172,662 | 7,561 | 4.38% | 158,535 | 7,070 | 4.46% | 106,796 | 5,198 | 4.87% | |||||||||||
Other | 25,812 | 65 | 0.25% | 36,241 | 85 | 0.23% | 21,977 | 51 | 0.23% | |||||||||||
Total interest-earning assets | 949,537 | 40,771 | 4.29% | 950,451 | 38,893 | 4.09% | 965,993 | 40,908 | 4.23% | |||||||||||
Cash and due from banks | 47,614 | 36,080 | 24,760 | |||||||||||||||||
Other assets | 52,245 | 51,239 | 55,618 | |||||||||||||||||
Allowance for loan losses | (12,905 | ) | (14,161 | ) | (16,760 | ) | ||||||||||||||
Total assets | $ | 1,036,491 | 1,023,609 | 1,029,611 | ||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
NOW, MMDA & savings deposits | $ | 392,822 | 499 | 0.13% | 376,457 | 732 | 0.19% | 351,748 | 1,180 | 0.34% | ||||||||||
Time deposits | 208,194 | 1,188 | 0.57% | 230,880 | 1,650 | 0.71% | 282,218 | 3,205 | 1.14% | |||||||||||
FHLB / FRB borrowings | 63,712 | 2,166 | 3.40% | 69,740 | 2,518 | 3.61% | 70,350 | 2,744 | 3.90% | |||||||||||
Trust preferred securities | 20,619 | 389 | 1.89% | 20,619 | 398 | 1.93% | 20,619 | 438 | 2.12% | |||||||||||
Other | 46,439 | 45 | 0.10% | 43,532 | 55 | 0.13% | 45,611 | 129 | 0.28% | |||||||||||
Total interest-bearing liabilities | 731,786 | 4,287 | 0.59% | 741,228 | 5,353 | 0.72% | 770,546 | 7,696 | 1.00% | |||||||||||
Demand deposits | 207,383 | 180,303 | 153,009 | |||||||||||||||||
Other liabilities | 4,771 | 4,860 | 4,746 | |||||||||||||||||
Shareholders' equity | 96,877 | 100,241 | 103,805 | |||||||||||||||||
Total liabilities and shareholder's equity | $ | 1,040,817 | 1,026,632 | 1,032,106 | ||||||||||||||||
Net interest spread | $ | 36,484 | 3.70% | $ | 33,540 | 3.37% | 33,212 | 3.23% | ||||||||||||
Net yield on interest-earning assets | 3.84% | 3.53% | 3.44% | |||||||||||||||||
Taxable equivalent adjustment | ||||||||||||||||||||
Investment securities | $ | 2,351 | $ | 2,197 | 1,663 | |||||||||||||||
Net interest income | $ | 34,133 | $ | 31,343 | 31,549 | |||||||||||||||
* Includes U.S. Government agency securities that are non-taxable for state income tax purposes of $26.0 million in 2014, $20.2 million in 2013 and $5.3 million in 2012. Tax rates of 6.00%, 6.90% and 6.90% were used to calculate the tax equivalent yield on these securities in 2014, 2013 and 2012, respectively. |
Table 2 - Rate/Volume Variance Analysis-Tax Equivalent Basis | ||||||||||||||
December 31, 2015 | December 31, 2014 | |||||||||||||
(Dollars in thousands) | Changes in average volume | Changes in average rates | Total Increase (Decrease) | Changes in average volume | Changes in average rates | Total Increase (Decrease) | ||||||||
Interest income: | ||||||||||||||
Loans: Net of unearned income | $ | 1,823 | (1,031 | ) | 792 | $ | 801 | (690 | ) | 111 | ||||
Investments - taxable | (729 | ) | 129 | (600 | ) | (365 | ) | 1,661 | 1,296 | |||||
Investments - nontaxable | 375 | (302 | ) | 73 | 624 | (133 | ) | 491 | ||||||
Other | (35 | ) | (4 | ) | (39 | ) | (26 | ) | 5 | (21 | ) | |||
Total interest income | 1,434 | (1,208 | ) | 226 | 1,034 | 843 | 1,877 | |||||||
Interest expense: | ||||||||||||||
NOW, MMDA & savings deposits | 29 | (96 | ) | (67 | ) | 26 | (259 | ) | (233 | ) | ||||
Time deposits | (185 | ) | (133 | ) | (318 | ) | (146 | ) | (316 | ) | (462 | ) | ||
FHLB / FRB Borrowings | (477 | ) | 46 | (431 | ) | (212 | ) | (140 | ) | (352 | ) | |||
Trust Preferred Securities | - | 13 | 13 | - | (9 | ) | (9 | ) | ||||||
Other | (1 | ) | 1 | - | 3 | (13 | ) | (10 | ) | |||||
Total interest expense | (634 | ) | (169 | ) | (803 | ) | (329 | ) | (737 | ) | (1,066 | ) | ||
Net interest income | $ | 2,068 | (1,039 | ) | 1,029 | $ | 1,363 | 1,580 | 2,943 |
Table 2 - Rate/Volume Variance Analysis-Tax Equivalent Basis | ||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||
(Dollars in thousands) | Changes in average volume | Changes in average rates | Total Increase (Decrease) | Changes in average volume | Changes in average rates | Total Increase (Decrease) | ||||||||
Interest income: | ||||||||||||||
Loans: Net of unearned income | $ | 801 | (690 | ) | 111 | $ | (1,697 | ) | (867 | ) | (2,564 | ) | ||
Investments - taxable | (365 | ) | 1,661 | 1,296 | (625 | ) | (732 | ) | (1,357 | ) | ||||
Investments - nontaxable | 624 | (133 | ) | 491 | 2,413 | (541 | ) | 1,872 | ||||||
Other | (26 | ) | 5 | (21 | ) | 33 | 1 | 34 | ||||||
Total interest income | 1,034 | 843 | 1,877 | 124 | (2,139 | ) | (2,015 | ) | ||||||
Interest expense: | ||||||||||||||
NOW, MMDA & savings deposits | 26 | (259 | ) | (233 | ) | 65 | (513 | ) | (448 | ) | ||||
Time deposits | (146 | ) | (316 | ) | (462 | ) | (475 | ) | (1,080 | ) | (1,555 | ) | ||
FHLB / FRB Borrowings | (212 | ) | (140 | ) | (352 | ) | (23 | ) | (203 | ) | (226 | ) | ||
Trust Preferred Securities | - | (9 | ) | (9 | ) | - | (40 | ) | (40 | ) | ||||
Other | 3 | (13 | ) | (10 | ) | (4 | ) | (70 | ) | (74 | ) | |||
Total interest expense | (329 | ) | (737 | ) | (1,066 | ) | (437 | ) | (1,906 | ) | (2,343 | ) | ||
Net interest income | $ | 1,363 | 1,580 | 2,943 | $ | 561 | (233 | ) | 328 |
Table 3 - Net Charge-off Analysis | Table 3 - Net Charge-off Analysis | |||||||||||||||||||||||||||||||||||
Net charge-offs | Net charge-offs as a percent of average loans outstanding | Net charge-offs | Net charge-offs/(recoveries) as a percent of average loans outstanding | |||||||||||||||||||||||||||||||||
Years ended December 31, | Years ended December 31, | Years ended December 31, | Years ended December 31, | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | 2011 | 2010 | 2014 | 2013 | 2012 | 2011 | 2010 | 2015 | 2014 | 2013 | 2012 | 2011 | 2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||
Real estate loans | ||||||||||||||||||||||||||||||||||||
Construction and land development | $ | 456 | 400 | 4,201 | 6,923 | 10,135 | 0.78% | 0.58% | 4.99% | 6.40% | 6.84% | $ | 153 | 456 | 400 | 4,200 | 6,923 | 0.25% | 0.78% | 0.58% | 4.99% | 6.40% | ||||||||||||||
Single-family residential | 237 | 1,613 | 814 | 2,049 | 2,853 | 0.12% | 0.82% | 0.39% | 0.91% | 1.21% | 584 | 237 | 1,613 | 814 | 2,049 | 0.27% | 0.12% | 0.82% | 0.39% | 0.91% | ||||||||||||||||
Single-family residential - | ||||||||||||||||||||||||||||||||||||
Banco de la Gente stated income | 174 | 132 | 668 | 675 | 425 | 0.36% | 0.26% | 1.25% | 1.23% | 0.77% | 95 | 174 | 131 | 668 | 675 | 0.21% | 0.36% | 0.26% | 1.25% | 1.23% | ||||||||||||||||
Commercial | 119 | 395 | 563 | 1,247 | 753 | 0.05% | 0.20% | 0.27% | 0.59% | 0.35% | 308 | 119 | 395 | 563 | 1,247 | 0.13% | 0.05% | 0.20% | 0.27% | 0.59% | ||||||||||||||||
Multifamily and farmland | - | - | - | - | - | 0.00% | - | - | - | - | - | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||||||||||||||
Total real estate loans | 986 | 2,540 | 6,246 | 10,894 | 14,166 | 0.18% | 0.48% | 1.12% | 1.80% | 2.14% | 1,140 | 986 | 2,539 | 6,245 | 10,894 | 0.20% | 0.18% | 0.48% | 1.12% | 1.80% | ||||||||||||||||
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Loans not secured by real estate | ||||||||||||||||||||||||||||||||||||
Commercial loans | 376 | 458 | 451 | 193 | 1,668 | 0.53% | 0.73% | 0.75% | 0.34% | 2.61% | (64 | ) | 376 | 458 | 451 | 193 | (0.07%) | 0.53% | 0.73% | 0.75% | 0.34% | |||||||||||||||
Farm loans | - | - | - | - | - | 0.00% | - | - | - | - | - | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||||||||||||||
Consumer loans (1) | 358 | 508 | 408 | 434 | 524 | 3.63% | 5.27% | 4.00% | 4.05% | 4.40% | 400 | 358 | 509 | 409 | 434 | 4.00% | 3.63% | 5.27% | 4.00% | 4.05% | ||||||||||||||||
All other loans | - | - | - | - | - | 0.00% | - | - | - | - | - | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||||||||||||||
Total loans | $ | 1,720 | 3,506 | 7,105 | 11,521 | 16,358 | 0.27% | 0.57% | 1.10% | 1.65% | 2.16% | $ | 1,476 | 1,720 | 3,506 | 7,105 | 11,521 | 0.22% | 0.27% | 0.57% | 1.10% | 1.65% | ||||||||||||||
Provision for loan losses for the period | $ | (699 | ) | 2,584 | 4,924 | 12,632 | 16,438 | |||||||||||||||||||||||||||||
(Reduction of) provision for loan losses for the period | $ | (17 | ) | (699 | ) | 2,584 | 4,924 | 12,632 | ||||||||||||||||||||||||||||
Allowance for loan losses at end of period | $ | 11,082 | 13,501 | 14,423 | 16,604 | 15,493 | $ | 9,589 | 11,082 | 13,501 | 14,423 | 16,604 | ||||||||||||||||||||||||
Total loans at end of period | $ | 651,891 | 620,960 | 619,974 | 670,497 | 726,160 | $ | 689,091 | 651,891 | 620,960 | 619,974 | 670,497 | ||||||||||||||||||||||||
Non-accrual loans at end of period | $ | 10,728 | 13,836 | 17,630 | 21,785 | 40,062 | $ | 8,432 | 10,728 | 13,836 | 17,630 | 21,785 | ||||||||||||||||||||||||
Allowance for loan losses as a percent of | Allowance for loan losses as a percent of | |||||||||||||||||||||||||||||||||||
total loans outstanding at end of period | 1.70% | 2.17% | 2.33% | 2.48% | 2.13% | 1.39% | 1.70% | 2.17% | 2.33% | 2.48% | ||||||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||||||
Non-accrual loans as a percent of | ||||||||||||||||||||||||||||||||||||
total loans outstanding at end of period | 1.65% | 2.23% | 2.84% | 3.25% | 5.52% | 1.22% | 1.65% | 2.23% | 2.84% | 3.25% | ||||||||||||||||||||||||||
(1) The loss ratio for Consumer loans is elevated because overdraft charge-offs related to DDA and NOW accounts are reported in Consumer Loan charge-offs and recoveries. The net overdraft charge-offs are not considered material and are therefore not shown separately. | ||||||||||||||||||||||||||||||||||||
(1) The loss ratio for consumer loans is elevated because overdraft charge-offs related to DDA and NOW accounts are reported in consumer loan charge-offs and recoveries. The net overdraft charge-offs are not considered material and are therefore not shown separately. | (1) The loss ratio for consumer loans is elevated because overdraft charge-offs related to DDA and NOW accounts are reported in consumer loan charge-offs and recoveries. The net overdraft charge-offs are not considered material and are therefore not shown separately. |
Table 4 - Non-Interest Income | |||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | 2015 | 2014 | 2013 | |||||||||||||
Service charges | $ | 4,961 | 4,566 | 4,764 | $ | 4,647 | 4,961 | 4,566 | |||||||||||
Other service charges and fees | 1,080 | 1,172 | 1,940 | 931 | 1,080 | 1,172 | |||||||||||||
Gain on sale of securities | 266 | 614 | 1,218 | - | 266 | 614 | |||||||||||||
Mortgage banking income | 804 | 1,228 | 1,229 | 1,130 | 804 | 1,228 | |||||||||||||
Insurance and brokerage commissions | 701 | 661 | 517 | 714 | 701 | 661 | |||||||||||||
Loss on sale and write-down of other real estate | (622 | ) | (581 | ) | (1,136 | ) | |||||||||||||
Gain/(loss) on sale and write-down of other real estate | 245 | (622 | ) | (581 | ) | ||||||||||||||
Visa debit card income | 3,170 | 2,990 | 2,092 | 3,452 | 3,170 | 2,990 | |||||||||||||
Net appraisal management fee income | 525 | 718 | 737 | 635 | 525 | 718 | |||||||||||||
Miscellaneous | 1,279 | 1,284 | 1,176 | 1,558 | 1,279 | 1,284 | |||||||||||||
Total non-interest income | $ | 12,164 | 12,652 | 12,537 | $ | 13,312 | 12,164 | 12,652 |
Table 5 - Non-Interest Expense | ||||||||||||
(Dollars in thousands) | 2015 | 2014 | 2013 | |||||||||
Salaries and employee benefits | $ | 18,285 | 17,530 | 16,851 | ||||||||
Occupancy expense | 6,288 | 6,251 | 5,539 | |||||||||
Office supplies | 422 | 448 | 498 | |||||||||
FDIC deposit insurance | 681 | 739 | 864 | |||||||||
Visa debit card expense | 988 | 905 | 823 | |||||||||
Professional services | 564 | 798 | 632 | |||||||||
Postage | 249 | 280 | 230 | |||||||||
Telephone | 588 | 574 | 570 | |||||||||
Director fees and expense | 304 | 237 | 246 | |||||||||
Advertising | 784 | 804 | 685 | |||||||||
Consulting fees | 904 | 609 | 468 | |||||||||
Taxes and licenses | 301 | 301 | 307 | |||||||||
Foreclosure/OREO expense | 398 | 317 | 356 | |||||||||
Internet banking expense | 671 | 644 | 568 | |||||||||
FHLB advance prepayment penalty | 504 | 869 | 530 | |||||||||
Other operating expense | 3,847 | 4,365 | 3,674 | |||||||||
Total non-interest expense | $ | 35,778 | 35,671 | 32,841 |
Table 5 - Non-Interest Expense | |||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||
Salaries and employee benefits | $ | 17,530 | 16,851 | 16,426 | |||
Occupancy expense | 6,251 | 5,539 | 5,236 | ||||
Office supplies | 448 | 498 | 369 | ||||
FDIC deposit insurance | 739 | 864 | 894 | ||||
Visa debit card expense | 905 | 823 | 729 | ||||
Professional services | 798 | 632 | 560 | ||||
Postage | 280 | 230 | 284 | ||||
Telephone | 574 | 570 | 554 | ||||
Director fees and expense | 237 | 246 | 266 | ||||
Advertising | 804 | 685 | 695 | ||||
Consulting fees | 609 | 468 | 499 | ||||
Taxes and licenses | 301 | 307 | 325 | ||||
Foreclosure/OREO expense | 317 | 356 | 677 | ||||
Internet banking expense | 644 | 568 | 593 | ||||
FHLB advance prepayment penalty | 869 | 530 | - | ||||
Other operating expense | 4,365 | 3,674 | 3,675 | ||||
Total non-interest expense | $ | 35,671 | 32,841 | 31,782 |
Table 6 - Interest Sensitivity Analysis | ||||||||||||||||||||||||
(Dollars in thousands) | Immediate | 1-3 months | 4-12 months | Total Within One Year | Over One Year & Non- sensitive | Total | ||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans | $ | 327,973 | 19,601 | 16,400 | 363,974 | 325,117 | 689,091 | |||||||||||||||||
Mortgage loans held for sale | 4,149 | - | - | 4,149 | - | 4,149 | ||||||||||||||||||
Investment securities available for sale | - | 4,755 | 14,625 | 19,380 | 249,150 | 268,530 | ||||||||||||||||||
Interest-bearing deposit accounts | 10,569 | - | - | 10,569 | - | 10,569 | ||||||||||||||||||
Other interest-earning assets | - | - | - | - | 4,254 | 4,254 | ||||||||||||||||||
Total interest-earning assets | 342,691 | 24,356 | 31,025 | 398,072 | 578,521 | 976,593 | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
NOW, savings, and money market deposits | 431,052 | - | - | 431,052 | - | 431,052 | ||||||||||||||||||
Time deposits | 16,370 | 22,215 | 59,002 | 97,587 | 59,305 | 156,892 | ||||||||||||||||||
FHLB borrowings | - | 43,500 | - | 43,500 | - | 43,500 | ||||||||||||||||||
Securities sold under | ||||||||||||||||||||||||
agreement to repurchase | 27,874 | - | - | 27,874 | - | 27,874 | ||||||||||||||||||
Trust preferred securities | - | 20,619 | - | 20,619 | - | 20,619 | ||||||||||||||||||
Total interest-bearing liabilities | 475,296 | 86,334 | 59,002 | 620,632 | 59,305 | 679,937 | ||||||||||||||||||
Interest-sensitive gap | $ | (132,605 | ) | (61,978 | ) | (27,977 | ) | (222,560 | ) | 519,216 | 296,656 | |||||||||||||
Cumulative interest-sensitive gap | $ | (132,605 | ) | (194,583 | ) | (222,560 | ) | (222,560 | ) | 296,656 | ||||||||||||||
Interest-earning assets as a percentage of | ||||||||||||||||||||||||
interest-bearing liabilities | 72.10 | % | 28.21 | % | 52.58 | % | 64.14 | % | 975.50 | % |
Table 6 - Interest Sensitivity Analysis | ||||||||||||
(Dollars in thousands) | Immediate | 1-3 months | 4-12 months | Total Within One Year | Over One Year & Non- sensitive | Total | ||||||
Interest-earning assets: | ||||||||||||
Loans | $ | 298,701 | 12,737 | 91 | 311,529 | 340,362 | 651,891 | |||||
Mortgage loans held for sale | 1,375 | - | - | 1,375 | - | 1,375 | ||||||
Investment securities available for sale | - | 6,367 | 17,090 | 23,457 | 257,642 | 281,099 | ||||||
Interest-bearing deposit accounts | 17,885 | - | - | 17,885 | - | 17,885 | ||||||
Other interest-earning assets | - | - | - | - | 4,650 | 4,650 | ||||||
Total interest-earning assets | 317,961 | 19,104 | 17,181 | 354,246 | 602,654 | 956,900 | ||||||
Interest-bearing liabilities: | ||||||||||||
NOW, savings, and money market deposits | 407,504 | - | - | 407,504 | - | 407,504 | ||||||
Time deposits | 24,102 | 25,806 | 81,093 | 131,001 | 65,437 | 196,438 | ||||||
FHLB borrowings | - | 50,000 | - | 50,000 | - | 50,000 | ||||||
Securities sold under | ||||||||||||
agreement to repurchase | 48,430 | - | - | 48,430 | - | 48,430 | ||||||
Trust preferred securities | - | 20,619 | - | 20,619 | - | 20,619 | ||||||
Total interest-bearing liabilities | 480,036 | 96,425 | 81,093 | 657,554 | 65,437 | 722,991 | ||||||
Interest-sensitive gap | $ | (162,075 | ) | (77,321 | ) | (63,912 | ) | (303,308 | ) | 537,217 | 233,909 | |
Cumulative interest-sensitive gap | $ | (162,075 | ) | (239,396 | ) | (303,308 | ) | (303,308 | ) | 233,909 | ||
Interest-earning assets as a percentage of interest-bearing liabilities | ||||||||||||
66.24% | 19.81% | 21.19% | 53.87% | 920.97% |
Table 7 - Summary of Investment Portfolio | ||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | |||
U. S. Government sponsored enterprises | $ | 34,048 | 22,143 | 18,837 | ||
State and political subdivisions | 152,246 | 145,368 | 125,658 | |||
Mortgage-backed securities | 90,210 | 123,977 | 148,024 | |||
Corporate bonds | 2,467 | 3,463 | 2,586 | |||
Trust preferred securities | 750 | 1,250 | 1,250 | |||
Equity securities | 1,378 | 1,689 | 1,468 | |||
Total securities | $ | 281,099 | 297,890 | 297,823 |
Table 7 - Summary of Investment Portfolio | ||||||||||||
(Dollars in thousands) | 2015 | 2014 | 2013 | |||||||||
U. S. Government sponsored enterprises | $ | 38,417 | 34,048 | 22,143 | ||||||||
State and political subdivisions | 148,245 | 152,246 | 145,368 | |||||||||
Mortgage-backed securities | 77,887 | 90,210 | 123,977 | |||||||||
Corporate bonds | 1,906 | 2,467 | 3,463 | |||||||||
Trust preferred securities | 750 | 750 | 1,250 | |||||||||
Equity securities | 1,325 | 1,378 | 1,689 | |||||||||
Total securities | $ | 268,530 | 281,099 | 297,890 |
Table 8 - Maturity Distribution and Weighted Average Yield on Investments | ||||||||||||||||||||
After One Year | After 5 Years | |||||||||||||||||||
One Year or Less | Through 5 Years | Through 10 Years | After 10 Years | Totals | ||||||||||||||||
(Dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||
Book value: | ||||||||||||||||||||
U.S. Government | ||||||||||||||||||||
sponsored enterprises | $ | 1,236 | 1.45% | 4,425 | 2.48% | 18,875 | 2.51% | 9,512 | 2.34% | 34,048 | 2.86% | |||||||||
State and political subdivisions | 2,583 | 3.18% | 36,674 | 3.12% | 101,510 | 3.23% | 11,479 | 3.43% | 152,246 | 3.41% | ||||||||||
Mortgage-backed securities | 19,134 | 2.53% | 41,971 | 2.69% | 15,000 | 2.66% | 14,105 | 2.94% | 90,210 | 2.23% | ||||||||||
Corporate bonds | 504 | 1.45% | 949 | 1.43% | 1,014 | 1.24% | - | - | 2,467 | 2.32% | ||||||||||
Trust preferred securities | - | - | - | - | 500 | 4.30% | 250 | 8.11% | 750 | 5.57% | ||||||||||
Equity securities | - | - | - | - | - | - | 1,378 | 0.00% | 1,378 | 0.00% | ||||||||||
Total securities | $ | 23,457 | 2.43% | 84,019 | 2.73% | 136,899 | 2.72% | 36,724 | 2.84% | 281,099 | 2.73% |
Table 8 - Maturity Distribution and Weighted Average Yield on Investments | ||||||||||||||||||||||||||||||||||||||||
After One Year | After 5 Years | |||||||||||||||||||||||||||||||||||||||
One Year or Less | Through 5 Years | Through 10 Years | After 10 Years | Totals | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||
Book value: | ||||||||||||||||||||||||||||||||||||||||
U.S. Government | ||||||||||||||||||||||||||||||||||||||||
sponsored enterprises | $ | 2,154 | 1.28 | % | 5,808 | 1.93 | % | 26,321 | 2.26 | % | 4,134 | 1.80 | % | 38,417 | 1.74 | % | ||||||||||||||||||||||||
State and political subdivisions | 572 | 4.52 | % | 53,693 | 3.21 | % | 82,523 | 3.26 | % | 11,457 | 3.43 | % | 148,245 | 3.40 | % | |||||||||||||||||||||||||
Mortgage-backed securities | 15,733 | 2.76 | % | 34,057 | 2.75 | % | 13,370 | 2.82 | % | 14,727 | 3.13 | % | 77,887 | 2.81 | % | |||||||||||||||||||||||||
Corporate bonds | 921 | 1.46 | % | - | 0.00 | % | 985 | 1.51 | % | - | - | 1,906 | 1.48 | % | ||||||||||||||||||||||||||
Trust preferred securities | - | - | - | - | 500 | 4.34 | % | 250 | 8.11 | % | 750 | 5.60 | % | |||||||||||||||||||||||||||
Equity securities | - | - | - | - | - | - | 1,325 | 0.00 | % | 1,325 | 0.00 | % | ||||||||||||||||||||||||||||
Total securities | $ | 19,380 | 2.60 | % | 93,558 | 2.81 | % | 123,699 | 2.71 | % | 31,893 | 3.10 | % | 268,530 | 2.50 | % |
Table 9 - Construction and Land Development Loans | ||||||||||||||||||
(Dollars in thousands) | Number of Loans | Balance Outstanding | Non-accrual Balance | Number of Loans | Balance Outstanding | Non-accrual Balance | ||||||||||||
Land acquisition and development - commercial purposes | 61 | $ | 11,460 | 36 | 61 | $ | 11,208 | 3 | ||||||||||
Land acquisition and development - residential purposes | 275 | 33,870 | 3,818 | 244 | 27,174 | 143 | ||||||||||||
1 to 4 family residential construction | 56 | 9,637 | - | 94 | 19,615 | - | ||||||||||||
Commercial construction | 6 | 2,650 | - | 11 | 7,794 | - | ||||||||||||
Total acquisition, development and construction | 398 | $ | 57,617 | 3,854 | 410 | $ | 65,791 | 146 |
Table 10 - Loan Portfolio | Table 10 - Loan Portfolio | Table 10 - Loan Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | % of Loans | Amount | % of Loans | Amount | % of Loans | Amount | % of Loans | Amount | % of Loans | Amount | % of Loans | Amount | % of Loans | Amount | % of Loans | Amount | % of Loans | Amount | % of Loans | ||||||||||||||||||||||||||||||||||||||||
Real estate loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction and land development | $ | 57,617 | 8.84% | 63,742 | 10.27% | 73,176 | 11.80% | 93,812 | 13.99% | 124,048 | 17.08% | $ | 65,791 | 9.55 | % | 57,617 | 8.84 | % | 63,742 | 10.27 | % | 73,176 | 11.80 | % | 93,812 | 13.99 | % | |||||||||||||||||||||||||||||||||
Single-family residential | 206,417 | 31.66% | 195,975 | 31.56% | 195,003 | 31.45% | 212,993 | 31.77% | 232,294 | 31.99% | 220,690 | 32.03 | % | 206,417 | 31.66 | % | 195,975 | 31.56 | % | 195,003 | 31.45 | % | 212,993 | 31.77 | % | |||||||||||||||||||||||||||||||||||
Single-family residential- Banco de la | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gente stated income | 47,015 | 7.21% | 49,463 | 7.97% | 52,019 | 8.39% | 54,058 | 8.06% | 55,013 | 7.58% | 43,733 | 6.35 | % | 47,015 | 7.21 | % | 49,463 | 7.97 | % | 52,019 | 8.39 | % | 54,058 | 8.06 | % | |||||||||||||||||||||||||||||||||||
Commercial | 228,558 | 35.06% | 209,287 | 33.70% | 200,633 | 32.36% | 214,415 | 31.98% | 213,487 | 29.40% | 228,526 | 33.16 | % | 228,558 | 35.06 | % | 209,287 | 33.70 | % | 200,633 | 32.36 | % | 214,415 | 31.98 | % | |||||||||||||||||||||||||||||||||||
Multifamily and farmland | 12,400 | 1.90% | 11,801 | 1.90% | 8,951 | 1.44% | 4,793 | 0.71% | 6,456 | 0.89% | 18,080 | 2.62 | % | 12,400 | 1.90 | % | 11,801 | 1.90 | % | 8,951 | 1.44 | % | 4,793 | 0.71 | % | |||||||||||||||||||||||||||||||||||
Total real estate loans | 552,007 | 84.68% | 530,268 | 85.39% | 529,782 | 85.45% | 580,071 | 86.51% | 631,298 | 86.94% | 576,820 | 83.71 | % | 552,007 | 84.68 | % | 530,268 | 85.39 | % | 529,782 | 85.45 | % | 580,071 | 86.51 | % | |||||||||||||||||||||||||||||||||||
Loans not secured by real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial loans | 76,262 | 11.71% | 68,047 | 10.97% | 64,295 | 10.38% | 60,646 | 9.05% | 60,994 | 8.40% | 91,010 | 13.22 | % | 76,262 | 11.71 | % | 68,047 | 10.97 | % | 64,295 | 10.38 | % | 60,646 | 9.05 | % | |||||||||||||||||||||||||||||||||||
Farm loans | 7 | 0.00% | 19 | 0.00% | 11 | 0.00% | - | 0.00% | - | 0.00% | 3 | 0.00 | % | 7 | 0.00 | % | 19 | 0.00 | % | 11 | 0.00 | % | - | 0.00 | % | |||||||||||||||||||||||||||||||||||
Consumer loans | 10,060 | 1.54% | 9,593 | 1.54% | 10,148 | 1.64% | 10,490 | 1.56% | 11,500 | 1.58% | 10,027 | 1.46 | % | 10,060 | 1.54 | % | 9,593 | 1.54 | % | 10,148 | 1.64 | % | 10,490 | 1.56 | % | |||||||||||||||||||||||||||||||||||
All other loans | 13,555 | 2.08% | 13,033 | 2.10% | 15,738 | 2.54% | 19,290 | 2.88% | 22,368 | 3.08% | 11,231 | 1.63 | % | 13,555 | 2.08 | % | 13,033 | 2.10 | % | 15,738 | 2.54 | % | 19,290 | 2.88 | % | |||||||||||||||||||||||||||||||||||
Total loans | 651,891 | 100.00% | 620,960 | 100.00% | 619,974 | 100.00% | 670,497 | 100.00% | 726,160 | 100.00% | 689,091 | 100.00 | % | 651,891 | 100.00 | % | 620,960 | 100.00 | % | 619,974 | 100.00 | % | 670,497 | 100.00 | % | |||||||||||||||||||||||||||||||||||
Less: Allowance for loan losses | 11,082 | 13,501 | 14,423 | 16,604 | 15,493 | 9,589 | 11,082 | 13,501 | 14,423 | 16,604 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net loans | $ | 640,809 | 607,459 | 605,551 | 653,893 | 710,667 | $ | 679,502 | 640,809 | 607,459 | 605,551 | 653,893 |
Table 11 - Maturity and Repricing Data for Loans | ||||||||
(Dollars in thousands) | Within one year or less | After one year through five years | After five years | Total loans | ||||
Real estate loans | ||||||||
Construction and land development | $ | 47,732 | 7,815 | 2,070 | 57,617 | |||
Single-family residential | 101,734 | 58,069 | 46,614 | 206,417 | ||||
Single-family residential- Banco de la Gente | ||||||||
stated income | 19,215 | - | 27,800 | 47,015 | ||||
Commercial | 103,449 | 72,907 | 52,202 | 228,558 | ||||
Multifamily and farmland | 3,747 | 4,584 | 4,069 | 12,400 | ||||
Total real estate loans | 275,877 | 143,375 | 132,755 | 552,007 | ||||
Loans not secured by real estate | ||||||||
Commercial loans | 47,603 | 18,394 | 10,265 | 76,262 | ||||
Farm loans | 1 | 6 | - | 7 | ||||
Consumer loans | 4,272 | 5,262 | 526 | 10,060 | ||||
All other loans | 9,164 | 2,833 | 1,558 | 13,555 | ||||
Total loans | $ | 336,917 | 169,870 | 145,104 | 651,891 | |||
Total fixed rate loans | $ | 25,388 | 141,605 | 145,104 | 312,097 | |||
Total floating rate loans | 311,529 | 28,265 | - | 339,794 | ||||
Total loans | $ | 336,917 | 169,870 | 145,104 | 651,891 |
Table 11 - Maturity and Repricing Data for Loans | ||||||||||||||||
(Dollars in thousands) | Within one year or less | After one year through five years | After five years | Total loans | ||||||||||||
Real estate loans | ||||||||||||||||
Construction and land development | $ | 54,295 | 8,359 | 3,137 | 65,791 | |||||||||||
Single-family residential | 108,585 | 59,236 | 52,869 | 220,690 | ||||||||||||
Single-family residential- Banco de la Gente | ||||||||||||||||
stated income | 18,266 | - | 25,467 | 43,733 | ||||||||||||
Commercial | 99,368 | 81,580 | 47,578 | 228,526 | ||||||||||||
Multifamily and farmland | 5,223 | 5,960 | 6,897 | 18,080 | ||||||||||||
Total real estate loans | 285,737 | 155,135 | 135,948 | 576,820 | ||||||||||||
Loans not secured by real estate | ||||||||||||||||
Commercial loans | 63,614 | 12,330 | 15,066 | 91,010 | ||||||||||||
Farm loans | 3 | - | - | 3 | ||||||||||||
Consumer loans | 4,837 | 4,659 | 531 | 10,027 | ||||||||||||
All other loans | 8,212 | 1,730 | 1,289 | 11,231 | ||||||||||||
Total loans | $ | 362,403 | 173,854 | 152,834 | 689,091 | |||||||||||
Total fixed rate loans | $ | 14,530 | 157,524 | 152,835 | 324,889 | |||||||||||
Total floating rate loans | 363,975 | 227 | - | 364,202 | ||||||||||||
Total loans | $ | 378,505 | 157,751 | 152,835 | 689,091 |
· | the |
· | the amount of past due and non-performing loans; |
· | specific known risks; |
· | the status and amount of other past due and non-performing assets; |
· | underlying estimated values of collateral securing loans; |
· | current and anticipated economic conditions; and |
· | other factors which management believes affect the allowance for potential credit losses. |
Table 12 - Loan Risk Grade Analysis | |||
Percentage of Loans | |||
By Risk Grade | |||
Risk Grade | 2014 | 2013 | |
Risk Grade 1 (Excellent Quality) | 2.18% | 2.40% | |
Risk Grade 2 (High Quality) | 22.30% | 18.82% | |
Risk Grade 3 (Good Quality) | 50.76% | 49.49% | |
Risk Grade 4 (Management Attention) | 16.54% | 18.69% | |
Risk Grade 5 (Watch) | 4.62% | 5.05% | |
Risk Grade 6 (Substandard) | 3.30% | 5.25% | |
Risk Grade 7 (Doubtful) | 0.00% | 0.00% | |
Risk Grade 8 (Loss) | 0.00% | 0.00% |
Table 12 - Loan Risk Grade Analysis | ||||||||
Percentage of Loans | ||||||||
By Risk Grade | ||||||||
Risk Grade | 2015 | 2014 | ||||||
Risk Grade 1 (Excellent Quality) | 1.66 | % | 2.18 | % | ||||
Risk Grade 2 (High Quality) | 24.40 | % | 22.30 | % | ||||
Risk Grade 3 (Good Quality) | 53.64 | % | 50.76 | % | ||||
Risk Grade 4 (Management Attention) | 14.26 | % | 16.54 | % | ||||
Risk Grade 5 (Watch) | 3.26 | % | 4.62 | % | ||||
Risk Grade 6 (Substandard) | 2.53 | % | 3.30 | % | ||||
Risk Grade 7 (Doubtful) | 0.00 | % | 0.00 | % | ||||
Risk Grade 8 (Loss) | 0.00 | % | 0.00 | % |
Table 13 - Analysis of Allowance for Loan Losses | |||||||||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | 2011 | 2010 | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||||
Allowance for loan losses at beginning | $ | 13,501 | $ | 14,423 | 16,604 | 15,493 | 15,413 | $ | 11,082 | 13,501 | 14,423 | 16,604 | 15,493 | ||||||||||||||||||
Loans charged off: | |||||||||||||||||||||||||||||||
Commercial | 430 | 502 | 555 | 314 | 1,730 | 38 | 430 | 502 | 555 | 314 | |||||||||||||||||||||
Real estate - mortgage | 789 | 2,441 | 2,491 | 4,196 | 4,194 | 1,064 | 789 | 2,441 | 2,491 | 4,196 | |||||||||||||||||||||
Real estate - construction | 884 | 777 | 4,728 | 7,164 | 10,224 | 197 | 884 | 777 | 4,728 | 7,164 | |||||||||||||||||||||
Consumer | 534 | 652 | 557 | 586 | 763 | 545 | 534 | 652 | 557 | 586 | |||||||||||||||||||||
Total loans charged off | 2,637 | 4,372 | 8,331 | 12,260 | 16,911 | 1,844 | 2,637 | 4,372 | 8,331 | 12,260 | |||||||||||||||||||||
Recoveries of losses previously charged off: | |||||||||||||||||||||||||||||||
Commercial | 54 | 44 | 104 | 121 | 62 | 101 | 54 | 44 | 104 | 121 | |||||||||||||||||||||
Real estate - mortgage | 259 | 302 | 446 | 225 | 162 | 77 | 259 | 302 | 446 | 225 | |||||||||||||||||||||
Real estate - construction | 428 | 377 | 528 | 241 | 89 | 45 | 428 | 377 | 528 | 241 | |||||||||||||||||||||
Consumer | 176 | 143 | 148 | 152 | 240 | 145 | 176 | 143 | 148 | 152 | |||||||||||||||||||||
Total recoveries | 917 | 866 | 1,226 | 739 | 553 | 368 | 917 | 866 | 1,226 | 739 | |||||||||||||||||||||
Net loans charged off | 1,720 | 3,506 | 7,105 | 11,521 | 16,358 | 1,476 | 1,720 | 3,506 | 7,105 | 11,521 | |||||||||||||||||||||
Provision for loan losses | (699 | ) | 2,584 | 4,924 | 12,632 | 16,438 | (17 | ) | (699 | ) | 2,584 | 4,924 | 12,632 | ||||||||||||||||||
Allowance for loan losses at end of year | $ | 11,082 | $ | 13,501 | 14,423 | 16,604 | 15,493 | $ | 9,589 | 11,082 | 13,501 | 14,423 | 16,604 | ||||||||||||||||||
Loans charged off net of recoveries, as | |||||||||||||||||||||||||||||||
a percent of average loans outstanding | 0.27% | 0.57% | 1.10% | 1.65% | 2.16% | 0.22 | % | 0.27 | % | 0.57 | % | 1.10 | % | 1.65 | % | ||||||||||||||||
Allowance for loan losses as a percent | |||||||||||||||||||||||||||||||
of total loans outstanding at end of year | 1.70% | 2.17% | 2.33% | 2.48% | 2.13% | 1.39 | % | 1.70 | % | 2.17 | % | 2.33 | % | 2.48 | % |
Table 14 - Non-performing Assets | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | 2011 | 2010 | 2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Non-accrual loans | $ | 10,728 | $ | 13,836 | $ | 17,630 | 21,785 | 40,062 | $ | 8,432 | 10,728 | 13,836 | 17,630 | 21,785 | ||||||||||||||||||
Loans 90 days or more past due and still accruing | - | 882 | 2,403 | 2,709 | 210 | 17 | - | 882 | 2,403 | 2,709 | ||||||||||||||||||||||
Total non-performing loans | 10,728 | 14,718 | 20,033 | 24,494 | 40,272 | 8,449 | 10,728 | 14,718 | 20,033 | 24,494 | ||||||||||||||||||||||
All other real estate owned | 2,016 | 1,679 | 6,254 | 7,576 | 6,673 | 739 | 2,016 | 1,679 | 6,254 | 7,576 | ||||||||||||||||||||||
Repossessed assets | - | - | 10 | - | - | - | - | - | 10 | - | ||||||||||||||||||||||
Total non-performing assets | $ | 12,744 | $ | 16,397 | $ | 26,297 | 32,070 | 46,945 | $ | 9,188 | 12,744 | 16,397 | 26,297 | 32,070 | ||||||||||||||||||
TDR loans not included in above, (not 90 days | ||||||||||||||||||||||||||||||||
past due or on nonaccrual) | 5,102 | 7,217 | 7,953 | 10,864 | 13,689 | |||||||||||||||||||||||||||
As a percent of total loans at year end | ||||||||||||||||||||||||||||||||
Non-accrual loans | 1.65% | 2.23% | 2.84% | 3.25% | 5.52% | 1.22 | % | 1.65 | % | 2.23 | % | 2.84 | % | 3.25 | % | |||||||||||||||||
Loans 90 days or more past due and still accruing | 0.00% | 0.14% | 0.39% | 0.40% | 0.03% | 0.00 | % | 0.00 | % | 0.14 | % | 0.39 | % | 0.40 | % | |||||||||||||||||
Total non-performing assets | ||||||||||||||||||||||||||||||||
as a percent of total assets at year end | 1.22% | 1.58% | 2.60% | 3.01% | 4.40% | 0.88 | % | 1.22 | % | 1.58 | % | 2.60 | % | 3.01 | % | |||||||||||||||||
Total non-performing loans | ||||||||||||||||||||||||||||||||
as a percent of total loans at year-end | 1.65% | 2.37% | 3.23% | 3.65% | 5.55% | 1.23 | % | 1.65 | % | 2.37 | % | 3.23 | % | 3.65 | % |
Table 15 - Maturities of Time Deposits over $100,000 | ||
(Dollars in thousands) | 2014 | |
Three months or less | $ | 28,149 |
Over three months through six months | 14,427 | |
Over six months through twelve months | 27,023 | |
Over twelve months | 36,854 | |
Total | $ | 106,453 |
Table 15 - Maturities of Time Deposits of $250,000 or greater | |||
(Dollars in thousands) | 2015 | ||
Three months or less | $ | 6,438 | |
Over three months through six months | 3,724 | ||
Over six months through twelve months | 2,048 | ||
Over twelve months | 14,681 | ||
Total | $ | 26,891 |
Table 16 - Contractual Obligations and Other Commitments | ||||||||||
(Dollars in thousands) | Within One Year | One to Three Years | Three to Five Years | Five Years or More | Total | |||||
Contractual Cash Obligations | ||||||||||
Long-term borrowings | $ | - | - | 50,000 | - | 50,000 | ||||
Junior subordinated debentures | - | - | - | 20,619 | 20,619 | |||||
Operating lease obligations | 600 | 1,140 | 991 | 1,854 | 4,585 | |||||
Total | $ | 600 | 1,140 | 50,991 | 22,473 | 75,204 | ||||
Other Commitments | ||||||||||
Commitments to extend credit | $ | 71,687 | 16,928 | 18,109 | 62,009 | 168,733 | ||||
Standby letters of credit | ||||||||||
and financial guarantees written | 3,911 | - | - | - | 3,911 | |||||
Total | $ | 75,598 | 16,928 | 18,109 | 62,009 | 172,644 |
Table 16 - Contractual Obligations and Other Commitments | ||||||||||||||||||||
(Dollars in thousands) | Within One Year | One to Three Years | Three to Five Years | Five Years or More | Total | |||||||||||||||
Contractual Cash Obligations | ||||||||||||||||||||
Long-term borrowings | $ | - | 43,500 | - | - | 43,500 | ||||||||||||||
Junior subordinated debentures | - | - | - | 20,619 | 20,619 | |||||||||||||||
Operating lease obligations | 664 | 1,051 | 912 | 1,548 | 4,175 | |||||||||||||||
Total | $ | 664 | 44,551 | 912 | 22,167 | 68,294 | ||||||||||||||
Other Commitments | ||||||||||||||||||||
Commitments to extend credit | $ | 76,710 | 13,823 | 17,623 | 81,195 | 189,351 | ||||||||||||||
Standby letters of credit | ||||||||||||||||||||
and financial guarantees written | 3,872 | - | - | - | 3,872 | |||||||||||||||
Total | $ | 80,582 | 13,823 | 17,623 | 81,195 | 193,223 |
Table 17 - Equity Ratios | |||||||||||||||||
2014 | 2013 | 2012 | 2015 | 2014 | 2013 | ||||||||||||
Return on average assets | 0.91% | 0.65% | 0.56% | 0.93 | % | 0.91 | % | 0.65 | % | ||||||||
Return on average equity | 9.69% | 6.67% | 5.58% | 9.03 | % | 9.69 | % | 6.67 | % | ||||||||
Dividend payout ratio * | 10.76% | 11.17% | 20.96% | 16.12 | % | 10.76 | % | 11.17 | % | ||||||||
Average equity to average assets | 9.35% | 9.79% | 10.08% | 10.27 | % | 9.35 | % | 9.79 | % | ||||||||
* As a percentage of net earnings available to common shareholders. |
Table 18 - Quarterly Financial Data | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(Dollars in thousands, except per share amounts) | First | Second | Third | Fourth | First | Second | Third | Fourth | |||||||||
Total interest income | $ | 9,545 | 9,576 | 9,583 | 9,716 | $ | 9,103 | 8,909 | 9,188 | 9,496 | |||||||
Total interest expense | 1,111 | 1,085 | 1,076 | 1,015 | 1,463 | 1,372 | 1,285 | 1,233 | |||||||||
Net interest income | 8,434 | 8,491 | 8,507 | 8,701 | 7,640 | 7,537 | 7,903 | 8,263 | |||||||||
Provision for loan losses | (349 | ) | 67 | 256 | (673 | ) | 1,053 | 773 | 337 | 421 | |||||||
Other income | 2,841 | 3,110 | 3,207 | 3,006 | 3,427 | 3,309 | 3,111 | 2,805 | |||||||||
Other expense | 8,123 | 8,067 | 8,541 | 10,940 | 7,738 | 7,979 | 7,889 | 9,235 | |||||||||
Income before income taxes | 3,501 | 3,467 | 2,917 | 1,440 | 2,276 | 2,094 | 2,788 | 1,412 | |||||||||
Income taxes | 923 | 916 | 475 | (377 | ) | 518 | 461 | 870 | 30 | ||||||||
Net earnings | 2,578 | 2,551 | 2,442 | 1,817 | 1,758 | 1,633 | 1,918 | 1,382 | |||||||||
Dividends and accretion of preferred stock | - | - | - | - | 157 | 156 | 156 | 187 | |||||||||
Net earnings available | |||||||||||||||||
to common shareholders | $ | 2,578 | 2,551 | 2,442 | 1,817 | $ | 1,601 | 1,477 | 1,762 | 1,195 | |||||||
Basic earnings per common share | 0.46 | 0.45 | 0.43 | 0.33 | $ | 0.29 | 0.26 | 0.31 | 0.22 | ||||||||
Diluted earnings per common share | $ | 0.46 | 0.45 | 0.43 | 0.32 | $ | 0.29 | 0.26 | 0.31 | 0.21 |
Table 18 - Quarterly Financial Data | ||||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | First | Second | Third | Fourth | First | Second | Third | Fourth | ||||||||||||||||||||||||
Total interest income | $ | 9,567 | 9,191 | 9,947 | 9,961 | $ | 9,545 | 9,576 | 9,583 | 9,716 | ||||||||||||||||||||||
Total interest expense | 884 | 875 | 874 | 851 | 1,111 | 1,085 | 1,076 | 1,015 | ||||||||||||||||||||||||
Net interest income | 8,683 | 8,316 | 9,073 | 9,110 | 8,434 | 8,491 | 8,507 | 8,701 | ||||||||||||||||||||||||
(Reduction of) provision for loan losses | 173 | (214 | ) | 235 | (211 | ) | (349 | ) | 67 | 256 | (673 | ) | ||||||||||||||||||||
Other income | 3,245 | 3,297 | 3,266 | 3,504 | 2,841 | 3,110 | 3,207 | 3,006 | ||||||||||||||||||||||||
Other expense | 8,748 | 8,337 | 8,669 | 10,024 | 8,123 | 8,067 | 8,541 | 10,940 | ||||||||||||||||||||||||
Income before income taxes | 3,007 | 3,490 | 3,435 | 2,801 | 3,501 | 3,467 | 2,917 | 1,440 | ||||||||||||||||||||||||
Income taxes | 679 | 866 | 942 | 613 | 923 | 916 | 475 | (377 | ) | |||||||||||||||||||||||
Net earnings | 2,328 | 2,624 | 2,493 | 2,188 | 2,578 | 2,551 | 2,442 | 1,817 | ||||||||||||||||||||||||
Basic net earnings per share | 0.41 | 0.47 | 0.45 | 0.40 | $ | 0.46 | 0.45 | 0.43 | 0.33 | |||||||||||||||||||||||
Diluted net earnings per share | $ | 0.41 | 0.47 | 0.45 | 0.39 | $ | 0.46 | 0.45 | 0.43 | 0.32 |
Table 19 - Market Risk Table | |||||||||||
(Dollars in thousands) | Principal/Notional Amount Maturing in Year Ended December 31, | ||||||||||
Loans Receivable | 2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | Total | Fair Value | |||
Fixed rate | $ | 45,541 | 44,393 | 46,751 | 37,212 | 52,277 | 109,052 | 335,226 | 339,264 | ||
Average interest rate | 5.03% | 4.72% | 4.82% | 4.83% | 4.78% | 5.57% | |||||
Variable rate | $ | 85,268 | 40,323 | 33,729 | 47,476 | 33,809 | 113,260 | 353,865 | 353,865 | ||
Average interest rate | 4.57% | 4.44% | 4.36% | 4.08% | 4.19% | 3.99% | |||||
689,091 | 693,129 | ||||||||||
Investment Securities | |||||||||||
Interest bearing cash | $ | 10,569 | - | - | - | - | - | 10,569 | 10,569 | ||
Average interest rate | 0.28% | - | - | - | - | - | |||||
Securities available for sale | $ | 31,276 | 15,339 | 20,561 | 22,849 | 23,527 | 154,978 | 268,530 | 268,530 | ||
Average interest rate | 4.72% | 4.11% | 4.60% | 4.45% | 4.27% | 4.43% | |||||
Nonmarketable equity securities | $ | - | - | - | - | - | 3,636 | 3,636 | 3,636 | ||
Average interest rate | - | - | - | - | - | 3.95% | |||||
Debt Obligations | |||||||||||
Deposits | $ | 97,541 | 27,830 | 24,161 | 2,920 | 4,562 | 675,161 | 832,175 | 827,874 | ||
Average interest rate | 0.33% | 0.56% | 0.61% | 0.75% | 0.75% | 0.07% | |||||
Advances from FHLB | $ | - | - | 43,500 | - | - | - | 43,500 | 43,144 | ||
Average interest rate | - | - | 3.53% | - | - | - | |||||
Securities sold under agreement to repurchase | $ | 27,874 | - | - | - | - | - | 27,874 | 27,874 | ||
Average interest rate | 0.10% | - | - | - | - | - | |||||
Junior subordinated debentures | $ | - | - | - | - | - | 20,619 | 20,619 | 20,619 | ||
Average interest rate | - | - | - | - | - | 2.00% |
Table 19 - Market Risk Table | |||||||||||||
(Dollars in thousands) | Principal/Notional Amount Maturing in Year Ended December 31, | ||||||||||||
Loans Receivable | 2015 | 2016 | 2017 | 2018 & 2019 | Thereafter | Total | Fair Value | ||||||
Fixed rate | $ | 56,228 | 44,450 | 37,221 | 78,116 | 96,082 | 312,097 | 304,914 | |||||
Average interest rate | 5.1%1 | 4.96% | 4.84% | 4.88% | 5.62% | ||||||||
Variable rate | $ | 70,230 | 37,628 | 36,583 | 74,705 | 120,648 | 339,794 | 339,794 | |||||
Average interest rate | 4.64% | 4.49% | 4.45% | 4.20% | 4.07% | ||||||||
651,891 | 644,708 | ||||||||||||
Investment Securities | |||||||||||||
Interest bearing cash | $ | 17,885 | - | - | - | - | 17,885 | 17,885 | |||||
Average interest rate | 0.28% | - | - | - | - | ||||||||
Securities available for sale | $ | 23,770 | 9,909 | 15,729 | 44,552 | 187,139 | 281,099 | 281,099 | |||||
Average interest rate | 4.35% | 4.75% | 4.11% | 4.51% | 4.52% | ||||||||
Nonmarketable equity securities | $ | - | - | - | - | 4,031 | 4,031 | 4,031 | |||||
Average interest rate | - | - | - | - | 3.50% | ||||||||
Debt Obligations | |||||||||||||
Deposits | $ | 130,291 | 37,655 | 17,138 | 11,353 | 618,263 | 814,700 | 813,288 | |||||
Average interest rate | 0.39% | 0.74% | 0.80% | 0.93% | 0.08% | ||||||||
Advances from FHLB | $ | - | - | - | 50,000 | - | 50,000 | 49,598 | |||||
Average interest rate | - | - | - | 3.33% | - | ||||||||
Securities sold under agreement to repurchase | $ | 48,430 | - | - | - | - | 48,430 | 48,430 | |||||
Average interest rate | 0.10% | - | - | - | - | ||||||||
Junior subordinated debentures | $ | - | - | - | - | 20,619 | 20,619 | 20,619 | |||||
Average interest rate | - | - | - | - | 1.82% |
Table 20 - Interest Rate Risk | ||||||||||
(Dollars in thousands) | ||||||||||
Estimated Resulting Theoretical Net Interest Income | ||||||||||
Hypothetical rate change (ramp over 12 months) | Amount | % Change | ||||||||
+3% | $ | 38,394 | 3.75% | |||||||
+2% | $ | 38,254 | 3.37% | |||||||
+1% | $ | 37,590 | 1.58% | |||||||
0% | $ | 37,007 | 0.00% | |||||||
-1% | $ | 36,062 | -2.55% | |||||||
-2% | $ | 35,095 | -5.17% | |||||||
-3% | $ | 34,774 | -6.03% | |||||||
Estimated Resulting Theoretical Market Value of Equity | ||||||||||
Hypothetical rate change (immediate shock) | Amount | % Change | ||||||||
+3% | $ | 132,725 | 5.11% | |||||||
+2% | $ | 138,518 | 9.70% | |||||||
+1% | $ | 136,099 | 7.79% | |||||||
0% | $ | 126,268 | 0.00% | |||||||
-1% | $ | 108,460 | -14.10% | |||||||
-2% | $ | 89,254 | -29.31% | |||||||
-3% | $ | 98,461 | -22.02% |
Table 20 - Interest Rate Risk | ||
(Dollars in thousands) | ||
Estimated Resulting Theoretical Net Interest Income | ||
Hypothetical rate change (ramp over 12 months) | Amount | % Change |
+3% | $ 36,617 | 1.86% |
+2% | $ 36,666 | 2.00% |
+1% | $ 36,073 | 0.35% |
0% | $ 35,947 | 0.00% |
-1% | $ 35,015 | -2.59% |
-2% | $ 33,952 | -5.55% |
-3% | $ 33,625 | -6.46% |
Estimated Resulting Theoretical Market Value of Equity | ||
Hypothetical rate change (immediate shock) | Amount | % Change |
+3% | $ 115,085 | 0.33% |
+2% | $ 121,703 | 6.10% |
+1% | $ 119,739 | 4.39% |
0% | $ 114,707 | 0.00% |
-1% | $ 99,895 | -12.91% |
-2% | $ 86,340 | -24.73% |
-3% | $ 93,108 | -18.83% |
PEOPLES BANCORP OF NORTH CAROLINA, INC. AND SUBSIDIARIES | |||
Consolidated Financial Statements | |||
December 31, 2015, 2014 | |||
2013 | |||
INDEX | |||
PAGE(S) | |||
A-25 - A-26 | |||
Financial Statements | |||
Consolidated Balance Sheets at December 31, | A-27 | ||
Consolidated Statements of Earnings for the years ended December 31, 2015, 2014 | A-28 | ||
Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2015, 2014 and 2013 | |||
A-29 | |||
Consolidated Statements of Changes in Shareholders' Equity for the years ended December 31, 2015, 2014 and 2013 | |||
A-30 | |||
Consolidated Statements of Cash Flows for the years ended December 31, 2015, 2014 | A-32 | ||
Notes to Consolidated Financial Statements | A-64 |
PEOPLES BANCORP OF NORTH CAROLINA, INC. AND SUBSIDIARIES | ||||||||
Consolidated Balance Sheets | ||||||||
December 31, 2015 and December 31, 2014 | ||||||||
(Dollars in thousands) | ||||||||
December 31, | December 31, | |||||||
Assets | 2015 | 2014 | ||||||
Cash and due from banks, including reserve requirements | $ | 29,194 | 51,213 | |||||
of $14,587 at 12/31/15 and $12,569 at 12/31/14 | ||||||||
Interest-bearing deposits | 10,569 | 17,885 | ||||||
Cash and cash equivalents | 39,763 | 69,098 | ||||||
Investment securities available for sale | 268,530 | 281,099 | ||||||
Other investments | 3,636 | 4,031 | ||||||
Total securities | 272,166 | 285,130 | ||||||
Mortgage loans held for sale | 4,149 | 1,375 | ||||||
Loans | 689,091 | 651,891 | ||||||
Less allowance for loan losses | (9,589 | ) | (11,082 | ) | ||||
Net loans | 679,502 | 640,809 | ||||||
Premises and equipment, net | 16,976 | 17,000 | ||||||
Cash surrender value of life insurance | 14,546 | 14,125 | ||||||
Other real estate | 739 | 2,016 | ||||||
Accrued interest receivable and other assets | 10,640 | 10,941 | ||||||
Total assets | $ | 1,038,481 | 1,040,494 | |||||
Liabilities and Shareholders' Equity | ||||||||
Deposits: | ||||||||
Noninterest-bearing demand | $ | 244,231 | 210,758 | |||||
NOW, MMDA & savings | 431,052 | 407,504 | ||||||
Time, $250,000 or more | 26,891 | 47,872 | ||||||
Other time | 130,001 | 148,566 | ||||||
Total deposits | 832,175 | 814,700 | ||||||
Securities sold under agreements to repurchase | 27,874 | 48,430 | ||||||
FHLB borrowings | 43,500 | 50,000 | ||||||
Junior subordinated debentures | 20,619 | 20,619 | ||||||
Accrued interest payable and other liabilities | 9,449 | 8,080 | ||||||
Total liabilities | 933,617 | 941,829 | ||||||
Commitments | ||||||||
Shareholders' equity: | ||||||||
Series A preferred stock, $1,000 stated value; authorized | ||||||||
5,000,000 shares; no shares issued and outstanding | - | - | ||||||
Common stock, no par value; authorized | ||||||||
20,000,000 shares; issued and outstanding 5,510,538 | ||||||||
shares at 12/31/15, and 5,612,588 shares at 12/31/14 | 46,171 | 48,088 | ||||||
Retained earnings | 53,183 | 45,124 | ||||||
Accumulated other comprehensive income | 5,510 | 5,453 | ||||||
Total shareholders' equity | 104,864 | 98,665 | ||||||
Total liabilities and shareholders' equity | $ | 1,038,481 | 1,040,494 | |||||
See accompanying Notes to Consolidated Financial Statements. |
PEOPLES BANCORP OF NORTH CAROLINA, INC. AND SUBSIDIARIES | ||||||||||||
Consolidated Statements of Earnings | ||||||||||||
For the Years Ended December 31, 2015, 2014 and 2013 | ||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Interest income: | ||||||||||||
Interest and fees on loans | $ | 31,098 | 30,305 | 30,194 | ||||||||
Interest on due from banks | 26 | 65 | 85 | |||||||||
Interest on investment securities: | ||||||||||||
U.S. Government sponsored enterprises | 2,616 | 2,995 | 1,639 | |||||||||
States and political subdivisions | 4,600 | 4,677 | 4,427 | |||||||||
Other | 326 | 378 | 351 | |||||||||
Total interest income | 38,666 | 38,420 | 36,696 | |||||||||
Interest expense: | ||||||||||||
NOW, MMDA & savings deposits | 432 | 499 | 732 | |||||||||
Time deposits | 870 | 1,188 | 1,650 | |||||||||
FHLB borrowings | 1,735 | 2,166 | 2,518 | |||||||||
Junior subordinated debentures | 402 | 389 | 398 | |||||||||
Other | 45 | 45 | 55 | |||||||||
Total interest expense | 3,484 | 4,287 | 5,353 | |||||||||
Net interest income | 35,182 | 34,133 | 31,343 | |||||||||
(Reduction of) provision for loan losses | (17 | ) | (699 | ) | 2,584 | |||||||
Net interest income after provision for loan losses | 35,199 | 34,832 | 28,759 | |||||||||
Non-interest income: | ||||||||||||
Service charges | 4,647 | 4,961 | 4,566 | |||||||||
Other service charges and fees | 931 | 1,080 | 1,172 | |||||||||
Gain on sale of securities | - | 266 | 614 | |||||||||
Mortgage banking income | 1,130 | 804 | 1,228 | |||||||||
Insurance and brokerage commissions | 714 | 701 | 661 | |||||||||
Gain/(loss) on sales and write-downs of | ||||||||||||
other real estate | 245 | (622 | ) | (581 | ) | |||||||
Miscellaneous | 5,645 | 4,974 | 4,992 | |||||||||
Total non-interest income | 13,312 | 12,164 | 12,652 | |||||||||
Non-interest expense: | ||||||||||||
Salaries and employee benefits | 18,285 | 17,530 | 16,851 | |||||||||
Occupancy | 6,288 | 6,251 | 5,539 | |||||||||
Professional fees | 1,468 | 1,401 | 1,088 | |||||||||
Advertising | 784 | 804 | 685 | |||||||||
Debit card expense | 988 | 905 | 823 | |||||||||
FDIC insurance | 681 | 739 | 864 | |||||||||
Other | 7,284 | 8,041 | 6,991 | |||||||||
Total non-interest expense | 35,778 | 35,671 | 32,841 | |||||||||
Earnings before income taxes | 12,733 | 11,325 | 8,570 | |||||||||
Income tax expense | 3,100 | 1,937 | 1,879 | |||||||||
Net earnings | 9,633 | 9,388 | 6,691 | |||||||||
Dividends and accretion of preferred stock | - | - | 656 | |||||||||
Net earnings available to common shareholders | $ | 9,633 | 9,388 | 6,035 | ||||||||
Basic net earnings per common share | $ | 1.73 | 1.67 | 1.08 | ||||||||
Diluted net earnings per common share | $ | 1.72 | 1.66 | 1.07 | ||||||||
Cash dividends declared per common share | $ | 0.28 | 0.18 | 0.12 | ||||||||
See accompanying Notes to Consolidated Financial Statements. |
PEOPLES BANCORP OF NORTH CAROLINA, INC. AND SUBSIDIARIES | ||||||
Consolidated Balance Sheets | ||||||
December 31, 2014 and 2013 | ||||||
(Dollars in thousands) | ||||||
Assets | 2014 | 2013 | ||||
Cash and due from banks, including reserve requirements | $ | 51,213 | 49,902 | |||
of $12,569 and $11,472 | ||||||
Interest-bearing deposits | 17,885 | 26,871 | ||||
Cash and cash equivalents | 69,098 | 76,773 | ||||
Investment securities available for sale | 281,099 | 297,890 | ||||
Other investments | 4,031 | 4,990 | ||||
Total securities | 285,130 | 302,880 | ||||
Mortgage loans held for sale | 1,375 | 497 | ||||
Loans | 651,891 | 620,960 | ||||
Less allowance for loan losses | (11,082 | ) | (13,501 | ) | ||
Net loans | 640,809 | 607,459 | ||||
Premises and equipment, net | 17,000 | 16,358 | ||||
Cash surrender value of life insurance | 14,125 | 13,706 | ||||
Other real estate | 2,016 | 1,679 | ||||
Accrued interest receivable and other assets | 10,941 | 15,332 | ||||
Total assets | $ | 1,040,494 | 1,034,684 | |||
Liabilities and Shareholders' Equity | ||||||
Deposits: | ||||||
Non-interest bearing demand | $ | 210,758 | 195,265 | |||
NOW, MMDA & savings | 407,504 | 386,893 | ||||
Time, $250,000 or more | 47,872 | 49,168 | ||||
Other time | 148,566 | 168,035 | ||||
Total deposits | 814,700 | 799,361 | ||||
Securities sold under agreements to repurchase | 48,430 | 45,396 | ||||
FHLB borrowings | 50,000 | 65,000 | ||||
Junior subordinated debentures | 20,619 | 20,619 | ||||
Accrued interest payable and other liabilities | 8,080 | 20,589 | ||||
Total liabilities | 941,829 | 950,965 | ||||
Commitments | ||||||
Shareholders' equity: | ||||||
Series A preferred stock, $1,000 stated value; authorized | ||||||
5,000,000 shares; no shares issued | ||||||
and outstanding | - | - | ||||
Common stock, no par value; authorized | ||||||
20,000,000 shares; issued and outstanding | ||||||
5,612,588 shares in 2014 and 5,613,495 shares in 2013 | 48,088 | 48,133 | ||||
Retained earnings | 45,124 | 36,758 | ||||
Accumulated other comprehensive income (loss) | 5,453 | (1,172 | ) | |||
Total shareholders' equity | 98,665 | 83,719 | ||||
Total liabilities and shareholders' equity | $ | 1,040,494 | 1,034,684 | |||
See accompanying Notes to Consolidated Financial Statements. |
PEOPLES BANCORP OF NORTH CAROLINA, INC. AND SUBSIDIARIES | ||||||||||||
Consolidated Statements of Comprehensive Income (Loss) | ||||||||||||
For the Years Ended December 31, 2015, 2014 and 2013 | ||||||||||||
(Dollars in thousands) | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Net earnings | $ | 9,633 | 9,388 | 6,691 | ||||||||
Other comprehensive income (loss): | ||||||||||||
Unrealized holding gains (losses) on securities | ||||||||||||
available for sale | 93 | 11,117 | (10,498 | ) | ||||||||
Reclassification adjustment for gains on | ||||||||||||
securities available for sale | ||||||||||||
included in net earnings | - | (266 | ) | (614 | ) | |||||||
Total other comprehensive income (loss), | ||||||||||||
before income taxes | 93 | 10,851 | (11,112 | ) | ||||||||
Income tax (benefit) expense related to other | ||||||||||||
comprehensive (loss) income: | ||||||||||||
Unrealized holding gains (losses) on securities | ||||||||||||
available for sale | 36 | 4,330 | (4,089 | ) | ||||||||
Reclassification adjustment for gains on | ||||||||||||
securities available for sale | ||||||||||||
included in net earnings | - | (104 | ) | (239 | ) | |||||||
Total income tax expense (benefit) related to | ||||||||||||
other comprehensive income (loss) | 36 | 4,226 | (4,328 | ) | ||||||||
Total other comprehensive income (loss), | ||||||||||||
net of tax | 57 | 6,625 | (6,784 | ) | ||||||||
Total comprehensive income (loss) | $ | 9,690 | 16,013 | (93 | ) | |||||||
See accompanying Notes to Consolidated Financial Statements. |
PEOPLES BANCORP OF NORTH CAROLINA, INC. AND SUBSIDIARIES | |||||||
Consolidated Statements of Earnings | |||||||
For the Years Ended December 31, 2014, 2013 and 2012 | |||||||
(Dollars in thousands, except per share amounts) | |||||||
2014 | 2013 | 2012 | |||||
Interest income: | |||||||
Interest and fees on loans | $ | 30,305 | 30,194 | 32,758 | |||
Interest on due from banks | 65 | 85 | 51 | ||||
Interest on investment securities: | |||||||
U.S. Government sponsored enterprises | 2,995 | 1,639 | 2,746 | ||||
States and political subdivisions | 4,677 | 4,427 | 3,403 | ||||
Other | 378 | 351 | 287 | ||||
Total interest income | 38,420 | 36,696 | 39,245 | ||||
Interest expense: | |||||||
NOW, MMDA & savings deposits | 499 | 732 | 1,180 | ||||
Time deposits | 1,188 | 1,650 | 3,205 | ||||
FHLB borrowings | 2,166 | 2,518 | 2,744 | ||||
Junior subordinated debentures | 389 | 398 | 438 | ||||
Other | 45 | 55 | 129 | ||||
Total interest expense | 4,287 | 5,353 | 7,696 | ||||
Net interest income | 34,133 | 31,343 | 31,549 | ||||
(Reduction of) provision for loan losses | (699 | ) | 2,584 | 4,924 | |||
Net interest income after provision for loan losses | 34,832 | 28,759 | 26,625 | ||||
Non-interest income: | |||||||
Service charges | 4,961 | 4,566 | 4,764 | ||||
Other service charges and fees | 1,080 | 1,172 | 1,940 | ||||
Gain on sale of securities | 266 | 614 | 1,218 | ||||
Mortgage banking income | 804 | 1,228 | 1,229 | ||||
Insurance and brokerage commissions | 701 | 661 | 517 | ||||
Loss on sales and write-downs of | |||||||
other real estate | (622 | ) | (581 | ) | (1,136 | ) | |
Miscellaneous | 4,974 | 4,992 | 4,005 | ||||
Total non-interest income | 12,164 | 12,652 | 12,537 | ||||
Non-interest expense: | |||||||
Salaries and employee benefits | 17,530 | 16,851 | 16,426 | ||||
Occupancy | 6,251 | 5,539 | 5,236 | ||||
Other | 11,890 | 10,451 | 10,120 | ||||
Total non-interest expense | 35,671 | 32,841 | 31,782 | ||||
Earnings before income taxes | 11,325 | 8,570 | 7,380 | ||||
Income tax expense | 1,937 | 1,879 | 1,587 | ||||
Net earnings | 9,388 | 6,691 | 5,793 | ||||
Dividends and accretion of preferred stock | - | 656 | 1,010 | ||||
Net earnings available to common shareholders | $ | 9,388 | 6,035 | 4,783 | |||
Basic net earnings per common share | $ | 1.67 | 1.08 | 0.86 | |||
Diluted net earnings per common share | $ | 1.66 | 1.07 | 0.86 | |||
Cash dividends declared per common share | $ | 0.18 | 0.12 | 0.18 | |||
See accompanying Notes to Consolidated Financial Statements. |
PEOPLES BANCORP OF NORTH CAROLINA, INC. AND SUBSIDIARIES | |||||||||||||||||||||
Consolidated Statements of Changes in Shareholders' Equity | |||||||||||||||||||||
For the Years Ended December 31, 2015, 2014 and 2013 | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Accumulated | |||||||||||||||||||||
Other | |||||||||||||||||||||
Stock Shares | Stock Amount | Retained | Comprehensive | ||||||||||||||||||
Preferred | Common | Preferred | Common | Earnings | Income | Total | |||||||||||||||
Balance, December 31, 2012 | 12,524 | 5,613,495 | $ | 12,524 | 48,133 | 31,478 | 5,612 | 97,747 | |||||||||||||
Preferred stock repurchase | (12,524 | ) | - | (12,524 | ) | - | - | - | (12,524 | ) | |||||||||||
Cash dividends declared on | |||||||||||||||||||||
Series A preferred stock | - | - | - | - | (734 | ) | - | (734 | ) | ||||||||||||
Cash dividends declared on | |||||||||||||||||||||
common stock | - | - | - | - | (677 | ) | - | (677 | ) | ||||||||||||
Net earnings | - | - | - | - | 6,691 | - | 6,691 | ||||||||||||||
Change in accumulated other | |||||||||||||||||||||
comprehensive income, | |||||||||||||||||||||
net of tax | - | - | - | - | - | (6,784 | ) | (6,784 | ) | ||||||||||||
Balance, December 31, 2013 | - | 5,613,495 | $ | - | 48,133 | 36,758 | (1,172 | ) | 83,719 | ||||||||||||
Common stock | |||||||||||||||||||||
repurchase | - | (4,537 | ) | - | (82 | ) | - | - | (82 | ) | |||||||||||
Cash dividends declared on | |||||||||||||||||||||
common stock | - | - | - | - | (1,022 | ) | - | (1,022 | ) | ||||||||||||
Stock options exercised | - | 3,630 | - | 37 | - | - | 37 | ||||||||||||||
Net earnings | - | - | - | - | 9,388 | - | 9,388 | ||||||||||||||
Change in accumulated other | |||||||||||||||||||||
comprehensive income, | |||||||||||||||||||||
net of tax | - | - | - | - | - | 6,625 | 6,625 | ||||||||||||||
Balance, December 31, 2014 | - | 5,612,588 | $ | - | 48,088 | 45,124 | 5,453 | 98,665 | |||||||||||||
Common stock | |||||||||||||||||||||
repurchase | - | (102,050 | ) | - | (1,917 | ) | - | - | (1,917 | ) | |||||||||||
Cash dividends declared on | |||||||||||||||||||||
common stock | - | - | - | - | (1,574 | ) | - | (1,574 | ) | ||||||||||||
Net earnings | - | - | - | - | 9,633 | - | 9,633 | ||||||||||||||
Change in accumulated other | |||||||||||||||||||||
comprehensive income, | |||||||||||||||||||||
net of tax | - | - | - | - | - | 57 | 57 | ||||||||||||||
Balance, December 31, 2015 | - | 5,510,538 | $ | - | 46,171 | 53,183 | 5,510 | 104,864 | |||||||||||||
See accompanying Notes to Consolidated Financial Statements. |
PEOPLES BANCORP OF NORTH CAROLINA, INC. AND SUBSIDIARIES | |||||||
Consolidated Statements of Comprehensive Income (Loss) | |||||||
For the Years Ended December 31, 2014, 2013 and 2012 | |||||||
(Dollars in thousands) | |||||||
2014 | 2013 | 2012 | |||||
Net earnings | $ | 9,388 | 6,691 | 5,793 | |||
Other comprehensive income (loss): | |||||||
Unrealized holding gains (losses) on securities | |||||||
available for sale | 11,117 | (10,498 | ) | 5,371 | |||
Reclassification adjustment for gains on | |||||||
securities available for sale | |||||||
included in net earnings | (266 | ) | (614 | ) | (1,218 | ) | |
Total other comprehensive income (loss), | |||||||
before income taxes | 10,851 | (11,112 | ) | 4,153 | |||
Income tax (benefit) expense related to other | |||||||
comprehensive (loss) income: | |||||||
Unrealized holding gains (losses) on securities | |||||||
available for sale | 4,330 | (4,089 | ) | 2,091 | |||
Reclassification adjustment for gains on | |||||||
securities available for sale | |||||||
included in net earnings | (104 | ) | (239 | ) | (474 | ) | |
Total income tax expense (benefit) related to | |||||||
other comprehensive income (loss) | 4,226 | (4,328 | ) | 1,617 | |||
Total other comprehensive income (loss), | |||||||
net of tax | 6,625 | (6,784 | ) | 2,536 | |||
Total comprehensive income (loss) | $ | 16,013 | (93 | ) | 8,329 | ||
See accompanying Notes to Consolidated Financial Statements. |
PEOPLES BANCORP OF NORTH CAROLINA, INC. AND SUBSIDIARIES | |||||||||||||||
Consolidated Statements of Changes in Shareholders' Equity | |||||||||||||||
For the Years Ended December 31, 2014, 2013 and 2012 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||
Accumulated | |||||||||||||||
Other | |||||||||||||||
Stock Shares | Stock Amount | Retained | Comprehensive | ||||||||||||
Preferred | Common | Preferred | Common | Earnings | Income | Total | |||||||||
Balance, December 31, 2011 | 25,054 | 5,544,160 | $ | 24,758 | 48,298 | 26,895 | 3,076 | 103,027 | |||||||
Accretion of Series A | |||||||||||||||
preferred stock | - | - | 70 | - | (70 | ) | - | - | |||||||
Preferred stock and | |||||||||||||||
warrant repurchase | (12,530 | ) | - | (12,304 | ) | (704 | ) | 886 | - | (12,122 | ) | ||||
Cash dividends declared on | |||||||||||||||
Series A preferred stock | - | - | - | - | (1,023 | ) | - | (1,023 | ) | ||||||
Cash dividends declared on | |||||||||||||||
common stock | - | - | - | - | (1,003 | ) | - | (1,003 | ) | ||||||
Stock options exercised | - | 69,335 | - | 539 | - | - | 539 | ||||||||
Net earnings | - | - | - | - | 5,793 | - | 5,793 | ||||||||
Change in accumulated other | |||||||||||||||
comprehensive income, | |||||||||||||||
net of tax | - | - | - | - | - | 2,536 | 2,536 | ||||||||
Balance, December 31, 2012 | 12,524 | 5,613,495 | $ | 12,524 | 48,133 | 31,478 | 5,612 | 97,747 | |||||||
Accretion of Series A | |||||||||||||||
preferred stock | (12,524 | ) | - | (12,524 | ) | - | - | - | (12,524 | ) | |||||
Cash dividends declared on | |||||||||||||||
Series A preferred stock | - | - | - | - | (734 | ) | - | (734 | ) | ||||||
Cash dividends declared on | |||||||||||||||
common stock | - | - | - | - | (677 | ) | - | (677 | ) | ||||||
Net earnings | - | - | - | - | 6,691 | - | 6,691 | ||||||||
Change in accumulated other | |||||||||||||||
comprehensive income, | |||||||||||||||
net of tax | - | - | - | - | - | (6,784 | ) | (6,784 | ) | ||||||
Balance, December 31, 2013 | - | 5,613,495 | $ | - | 48,133 | 36,758 | (1,172 | ) | 83,719 | ||||||
Common stock | |||||||||||||||
repurchase | - | (4,537 | ) | - | (82 | ) | - | - | (82 | ) | |||||
Cash dividends declared on | |||||||||||||||
common stock | - | - | - | - | (1,022 | ) | - | (1,022 | ) | ||||||
Stock options exercised | - | 3,630 | - | 37 | - | - | 38 | ||||||||
Net earnings | - | - | - | - | 9,388 | - | 9,388 | ||||||||
Change in accumulated other | |||||||||||||||
comprehensive income, | |||||||||||||||
net of tax | - | - | - | - | - | 6,625 | 6,625 | ||||||||
Balance, December 31, 2014 | - | 5,612,588 | $ | - | 48,088 | 45,124 | 5,453 | 98,665 | |||||||
See accompanying Notes to Consolidated Financial Statements. |
PEOPLES BANCORP OF NORTH CAROLINA, INC. AND SUBSIDIARIES | ||||||||||||
Consolidated Statements of Cash Flows | ||||||||||||
For the Years Ended December 31, 2015, 2014 and 2013 | ||||||||||||
(Dollars in thousands) | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net earnings | $ | 9,633 | 9,388 | 6,691 | ||||||||
Adjustments to reconcile net earnings to | ||||||||||||
net cash provided by operating activities: | ||||||||||||
Depreciation, amortization and accretion | 6,053 | 6,889 | 8,453 | |||||||||
(Reduction)/Provision for loan losses | (17 | ) | (699 | ) | 2,584 | |||||||
Deferred income taxes | 100 | 178 | 534 | |||||||||
Gain on sale of investment securities | - | (266 | ) | (614 | ) | |||||||
Gain on sale of other real estate | (363 | ) | (5 | ) | (14 | ) | ||||||
Write-down of other real estate | 118 | 627 | 595 | |||||||||
Restricted stock expense | 487 | 389 | 173 | |||||||||
Change in: | ||||||||||||
Mortgage loans held for sale | (2,774 | ) | (878 | ) | 6,425 | |||||||
Cash surrender value of life insurance | (421 | ) | (419 | ) | (432 | ) | ||||||
Other assets | 165 | (778 | ) | 1,508 | ||||||||
Other liabilities | 882 | 15 | (982 | ) | ||||||||
Net cash provided by operating activities | 13,863 | 14,441 | 24,921 | |||||||||
Cash flows from investing activities: | ||||||||||||
Purchases of investment securities available for sale | (19,220 | ) | (32,851 | ) | (98,129 | ) | ||||||
Proceeds from sales, calls and maturities of investment securities | ||||||||||||
available for sale | 5,475 | 36,148 | 63,597 | |||||||||
Proceeds from paydowns of investment securities available for sale | 22,732 | 20,202 | 17,463 | |||||||||
Purchases of other investments | (6 | ) | - | - | ||||||||
FHLB stock redemption | 401 | 959 | 609 | |||||||||
Net change in loans | (43,441 | ) | (36,692 | ) | (6,137 | ) | ||||||
Purchases of premises and equipment | (2,354 | ) | (3,120 | ) | (2,434 | ) | ||||||
Proceeds from sale of other real estate and repossessions | 6,287 | 3,456 | 5,797 | |||||||||
Net cash used by investing activities | (30,126 | ) | (11,898 | ) | (19,234 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Net change in deposits | 17,475 | 15,339 | 17,836 | |||||||||
Net change in securities sold under agreement to repurchase | (20,556 | ) | 3,034 | 10,818 | ||||||||
Proceeds from FHLB borrowings | 20,001 | - | 15,001 | |||||||||
Repayments of FHLB borrowings | (26,501 | ) | (15,000 | ) | (20,001 | ) | ||||||
Proceeds from FRB borrowings | 1 | 1 | 1 | |||||||||
Repayments of FRB borrowings | (1 | ) | (1 | ) | (1 | ) | ||||||
Preferred stock and warrant repurchase | - | (12,524 | ) | - | ||||||||
Stock options exercised | - | 37 | - | |||||||||
Common stock repurchased | (1,917 | ) | (82 | ) | - | |||||||
Cash dividends paid on Series A preferred stock | - | - | (734 | ) | ||||||||
Cash dividends paid on common stock | (1,574 | ) | (1,022 | ) | (677 | ) | ||||||
Net cash (used) provided by financing activities | (13,072 | ) | (10,218 | ) | 22,243 | |||||||
Net change in cash and cash equivalents | (29,335 | ) | (7,675 | ) | 27,930 | |||||||
Cash and cash equivalents at beginning of period | 69,098 | 76,773 | 48,843 | |||||||||
Cash and cash equivalents at end of period | $ | 39,763 | 69,098 | 76,773 |
PEOPLES BANCORP OF NORTH CAROLINA, INC. AND SUBSIDIARIES | ||||||||||||
Consolidated Statements of Cash Flows, continued | ||||||||||||
For the Years Ended December 31, 2015, 2014 and 2013 | ||||||||||||
(Dollars in thousands) | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Cash paid during the year for: | ||||||||||||
Interest | $ | 2,667 | 4,388 | 5,452 | ||||||||
Income taxes | $ | 2,278 | 1,939 | 2,256 | ||||||||
Noncash investing and financing activities: | ||||||||||||
Change in unrealized (loss) gain on investment securities | ||||||||||||
available for sale, net | $ | 57 | 6,625 | (6,784 | ) | |||||||
Transfer of loans to other real estate and repossessions | $ | 4,825 | 4,415 | 2,353 | ||||||||
Financed portion of sale of other real estate | $ | 60 | 374 | 708 | ||||||||
Accrued redemption of Series A Preferred Stock | $ | - | - | 12,632 | ||||||||
See accompanying Notes to Consolidated Financial Statements. |
PEOPLES BANCORP OF NORTH CAROLINA, INC. AND SUBSIDIARIES | |||||||
Consolidated Statements of Cash Flows | |||||||
For the Years Ended December 31, 2014, 2013 and 2012 | |||||||
(Dollars in thousands) | |||||||
2014 | 2013 | 2012 | |||||
Cash flows from operating activities: | |||||||
Net earnings | $ | 9,388 | 6,691 | 5,793 | |||
Adjustments to reconcile net earnings to | |||||||
net cash provided by operating activities: | |||||||
Depreciation, amortization and accretion | 6,889 | 8,453 | 8,876 | ||||
Provision for loan losses | (699 | ) | 2,584 | 4,924 | |||
Deferred income taxes | 178 | 534 | (213 | ) | |||
Gain on sale of investment securities | (266 | ) | (614 | ) | (1,218 | ) | |
(Gain) loss on sale of other real estate | (5 | ) | (14 | ) | 98 | ||
Write-down of other real estate | 627 | 595 | 1,038 | ||||
Restricted stock expense | 389 | 173 | 42 | ||||
Change in: | |||||||
Mortgage loans held for sale | (878 | ) | 6,425 | (1,776 | ) | ||
Cash surrender value of life insurance | (419 | ) | (432 | ) | (438 | ) | |
Other assets | (778 | ) | 1,508 | (441 | ) | ||
Other liabilities | 15 | (982 | ) | 2,342 | |||
Net cash provided by operating activities | 14,441 | 24,921 | 19,027 | ||||
Cash flows from investing activities: | |||||||
Purchases of investment securities available for sale | (32,851 | ) | (98,129 | ) | (88,304 | ) | |
Proceeds from calls, maturities and paydowns of investment securities | |||||||
available for sale | 36,148 | 63,597 | 63,225 | ||||
Proceeds from sales of investment securities available for sale | 20,202 | 17,463 | 47,076 | ||||
Purchases of other investments | - | - | (493 | ) | |||
FHLB stock redemption | 959 | 609 | 606 | ||||
Net change in loans | (36,692 | ) | (6,137 | ) | 38,170 | ||
Purchases of premises and equipment | (3,120 | ) | (2,434 | ) | (917 | ) | |
Proceeds from sale of other real estate and repossessions | 3,456 | 5,797 | 5,434 | ||||
Net cash (used) provided by investing activities | (11,898 | ) | (19,234 | ) | 64,797 | ||
Cash flows from financing activities: | |||||||
Net change in deposits | 15,339 | 17,836 | (45,586 | ) | |||
Net change in securities sold under agreement to repurchase | 3,034 | 10,818 | (5,022 | ) | |||
Proceeds from FHLB borrowings | - | 15,001 | 25,400 | ||||
Repayments of FHLB borrowings | (15,000 | ) | (20,001 | ) | (25,400 | ) | |
Proceeds from FRB borrowings | 1 | 1 | 2 | ||||
Repayments of FRB borrowings | (1 | ) | (1 | ) | (2 | ) | |
Preferred stock and warrant repurchase | (12,524 | ) | - | (12,122 | ) | ||
Stock options exercised | 37 | - | 539 | ||||
Common stock repurchased | (82 | ) | - | - | |||
Cash dividends paid on Series A preferred stock | - | (734 | ) | (1,023 | ) | ||
Cash dividends paid on common stock | (1,022 | ) | (677 | ) | (1,003 | ) | |
Net cash (used) provided by financing activities | (10,218 | ) | 22,243 | (64,217 | ) | ||
Net change in cash and cash equivalents | (7,675 | ) | 27,930 | 19,607 | |||
Cash and cash equivalents at beginning of period | 76,773 | 48,843 | 29,236 | ||||
Cash and cash equivalents at end of period | $ | 69,098 | 76,773 | 48,843 |
PEOPLES BANCORP OF NORTH CAROLINA, INC. AND SUBSIDIARIES | |||||||
Consolidated Statements of Cash Flows, continued | |||||||
For the Years Ended December 31, 2014, 2013 and 2012 | |||||||
(Dollars in thousands) | |||||||
2014 | 2013 | 2012 | |||||
Supplemental disclosures of cash flow information: | |||||||
Cash paid during the year for: | |||||||
Interest | $ | 4,388 | 5,452 | 7,822 | |||
Income taxes | $ | 1,939 | 2,256 | 2,013 | |||
Noncash investing and financing activities: | |||||||
Change in unrealized (loss) gain on investment securities | |||||||
available for sale, net | $ | 6,625 | (6,784 | ) | 2,536 | ||
Change in unrealized gain on derivative financial | |||||||
instruments, net | $ | - | - | - | |||
Transfer of loans to other real estate and repossessions | $ | 4,415 | 2,353 | 6,323 | |||
Financed portion of sale of other real estate | $ | 374 | 708 | 1,076 | |||
Accretion of Series A preferred stock | $ | - | - | 70 | |||
Discount on preferred stock repurchased | $ | - | - | 835 | |||
Accrued redemption of Series A Preferred Stock | $ | - | 12,632 | - | |||
See accompanying Notes to Consolidated Financial Statements. |
(1) | Summary of Significant Accounting |
· | the Bank's loan loss experience; |
· | the amount of past due and non-performing loans; |
· | specific known risks; |
· | the status and amount of other past due and non-performing assets; |
· | underlying estimated values of collateral securing loans; |
· | current and anticipated economic conditions; and |
· | other factors which management believes affect the allowance for potential credit losses. |
Buildings and improvements | 10 - 50 years | ||
Furniture and equipment | 3 - 10 years |
For the year ended December 31, 2015: | Net Earnings Available to Common Shareholders (Dollars in thousands) | Common Shares | Per Share Amount | ||||||||
Basic earnings per common share | $ | 9,633 | 5,559,235 | $ | 1.73 | ||||||
Effect of dilutive securities: | |||||||||||
Restricted stock units | - | 47,954 | |||||||||
Diluted earnings per common share | $ | 9,633 | 5,607,189 | $ | 1.72 | ||||||
For the year ended December 31, 2014: | Net Earnings Available to Common Shareholders (Dollars in thousands) | Common Shares | Per Share Amount | ||||||||
Basic earnings per common share | $ | 9,388 | 5,615,666 | $ | 1.67 | ||||||
Effect of dilutive securities: | |||||||||||
Restricted stock units | - | 26,326 | |||||||||
Diluted earnings per common share | $ | 9,388 | 5,641,992 | $ | 1.66 |
For the year ended December 31, 2013: | Net Earnings Available to Common Shareholders (Dollars in thousands) | Common Shares | Per Share Amount | ||||||||
Basic earnings per common share | $ | 6,035 | 5,613,495 | $ | 1.08 | ||||||
Effect of dilutive securities: | |||||||||||
Restricted stock units and stock options | - | 9,725 | |||||||||
Diluted earnings per common share | $ | 6,035 | 5,623,220 | $ | 1.07 |
(2) | Investment Securities |
(Dollars in thousands) | |||||||||||||||
December 31, 2015 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Mortgage-backed securities | $ | 76,406 | 1,526 | 45 | 77,887 | ||||||||||
U.S. Government | |||||||||||||||
sponsored enterprises | 38,173 | 399 | 155 | 38,417 | |||||||||||
State and political subdivisions | 141,500 | 6,817 | 72 | 148,245 | |||||||||||
Corporate bonds | 1,928 | - | 22 | 1,906 | |||||||||||
Trust preferred securities | 750 | - | - | 750 | |||||||||||
Equity securities | 748 | 577 | - | 1,325 | |||||||||||
Total | $ | 259,505 | 9,319 | 294 | 268,530 | ||||||||||
(Dollars in thousands) | ||||||||||||||||
December 31, 2014 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
Mortgage-backed securities | $ | 88,496 | 1,766 | 52 | 90,210 | |||||||||||
U.S. Government | ||||||||||||||||
sponsored enterprises | 33,766 | 418 | 136 | 34,048 | ||||||||||||
State and political subdivisions | 145,938 | 6,534 | 226 | 152,246 | ||||||||||||
Corporate bonds | 2,469 | 16 | 18 | 2,467 | ||||||||||||
Trust preferred securities | 750 | - | - | 750 | ||||||||||||
Equity securities | 748 | 630 | - | 1,378 | ||||||||||||
Total | $ | 272,167 | 9,364 | 432 | 281,099 |
(Dollars in thousands) | |||||||||||||||||||||||
December 31, 2015 | |||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
Mortgage-backed securities | $ | 7,891 | 45 | - | - | 7,891 | 45 | ||||||||||||||||
U.S. Government | |||||||||||||||||||||||
sponsored enterprises | 3,074 | 13 | 10,828 | 142 | 13,902 | 155 | |||||||||||||||||
State and political subdivisions | 2,198 | 4 | 3,930 | 68 | 6,128 | 72 | |||||||||||||||||
Corporate bonds | 1,500 | 22 | - | - | 1,500 | 22 | |||||||||||||||||
Total | $ | 14,663 | 84 | 14,758 | 210 | 29,421 | 294 | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
Mortgage-backed securities | $ | 436 | 1 | 2,963 | 51 | 3,399 | 52 | ||||||||||||||||
U.S. Government | |||||||||||||||||||||||
sponsored enterprises | 2,996 | 4 | 9,850 | 132 | 12,846 | 136 | |||||||||||||||||
State and political subdivisions | 567 | 1 | 14,998 | 225 | 15,565 | 226 | |||||||||||||||||
Corporate bonds | - | - | 525 | 18 | 525 | 18 | |||||||||||||||||
Total | $ | 3,999 | 6 | 28,336 | 426 | 32,335 | 432 |
December 31, 2015 | |||||||
(Dollars in thousands) | |||||||
Amortized Cost | Estimated Fair Value | ||||||
Due within one year | $ | 3,666 | 3,647 | ||||
Due from one to five years | 57,322 | 60,001 | |||||
Due from five to ten years | 106,136 | 109,829 | |||||
Due after ten years | 15,227 | 15,841 | |||||
Mortgage-backed securities | 76,406 | 77,887 | |||||
Equity securities | 748 | 1,325 | |||||
Total | $ | 259,505 | 268,530 |
(Dollars in thousands) | |||||||||||||||
December 31, 2015 | |||||||||||||||
Fair Value Measurements | Level 1 Valuation | Level 2 Valuation | Level 3 Valuation | ||||||||||||
Mortgage-backed securities | $ | 77,887 | - | 77,887 | - | ||||||||||
U.S. Government | |||||||||||||||
sponsored enterprises | $ | 38,417 | - | 38,417 | - | ||||||||||
State and political subdivisions | $ | 148,245 | - | 148,245 | - | ||||||||||
Corporate bonds | $ | 1,906 | - | 1,906 | - | ||||||||||
Trust preferred securities | $ | 750 | - | - | 750 | ||||||||||
Equity securities | $ | 1,325 | 1,325 | - | - |
(Dollars in thousands) | |||||||||||||||
December 31, 2014 | |||||||||||||||
Fair Value Measurements | Level 1 Valuation | Level 2 Valuation | Level 3 Valuation | ||||||||||||
Mortgage-backed securities | $ | 90,210 | - | 90,210 | - | ||||||||||
U.S. Government | |||||||||||||||
sponsored enterprises | $ | 34,048 | - | 34,048 | - | ||||||||||
State and political subdivisions | $ | 152,246 | - | 152,246 | - | ||||||||||
Corporate bonds | $ | 2,467 | - | 2,467 | - | ||||||||||
Trust preferred securities | $ | 750 | - | - | 750 | ||||||||||
Equity securities | $ | 1,378 | 1,378 | - | - |
(Dollars in thousands) | |||
Investment Securities | |||
Level 3 Valuation | |||
Balance, beginning of period | $ | 750 | |
Change in book value | - | ||
Change in gain/(loss) realized and unrealized | - | ||
Purchases/(sales and calls) | - | ||
Transfers in and/or (out) of Level 3 | - | ||
Balance, end of period | $ | 750 | |
Change in unrealized gain/(loss) for assets still held | $ | - |
(3) | Loans |
(Dollars in thousands) | |||||||
December 31, 2015 | December 31, 2014 | ||||||
Real estate loans: | |||||||
Construction and land development | $ | 65,791 | 57,617 | ||||
Single-family residential | 220,690 | 206,417 | |||||
Single-family residential - | |||||||
Banco de la Gente stated income | 43,733 | 47,015 | |||||
Commercial | 228,526 | 228,558 | |||||
Multifamily and farmland | 18,080 | 12,400 | |||||
Total real estate loans | 576,820 | 552,007 | |||||
Loans not secured by real estate: | |||||||
Commercial loans | 91,010 | 76,262 | |||||
Farm loans | 3 | 7 | |||||
Consumer loans | 10,027 | 10,060 | |||||
All other loans | 11,231 | 13,555 | |||||
Total loans | 689,091 | 651,891 | |||||
Less allowance for loan losses | 9,589 | 11,082 | |||||
Total net loans | $ | 679,502 | 640,809 |
· | Construction and land development loans – The risk of loss is largely dependent on A-42
|