| Florida | | | 6021 | | | 46-5144312 | |
| (State or other jurisdiction of incorporation or organization) | | | (Primary Standard Industrial Classification Code Number) | | | (I.R.S. Employer Identification Number) | |
| Robert B. Lamm, Esq. Gustav L. Schmidt, Esq. Gunster, Yoakley & Stewart, P.A. 450 E. Las Olas Blvd., Suite 1400 Fort Lauderdale, Florida 33301 (954) 462-2000 | | | Mary Usategui Executive Vice President & CFO Professional Holding Corp. 396 Alhambra Circle, Suite 255 Coral Gables, FL 33134 (786) 483-1757 | | | Frank M. Conner III, Esq. Michael P. Reed, Esq. Christopher J. DeCresce, Esq. Covington & Burling LLP One City Center 850 Tenth Street, NW Washington, D.C. 20001 (202) 662-6000 | |
| Large accelerated filer ☐ | | | Accelerated filer ☐ | |
| Non-accelerated filer ☐ | | | Smaller reporting company ☒ | |
| | | | Emerging growth company ☒ | |
| CALCULATION OF REGISTRATION FEE | | CALCULATION OF REGISTRATION FEE | | ||||||||||||||||||||||||||||||||||||||||||
| Title of Each Class of Securities to be Registered | | | | Proposed Maximum Aggregate Offering Price(1)(2) | | | | Amount of Registration Fee | | Title of each Class of Security to be Registered | | | | Amount to be Registered(1) | | | | Proposed Maximum Offering Price Per Share(2) | | | | Proposed Maximum Aggregate Offering Price(2) | | | | Amount of Registration Fee(3) | | ||||||||||||||||||
| Class A Common Stock, par value $0.01 per share | | | | | $ | 75,000,000 | | | | | | $ | 9,735 | | | Class A Common Stock, $0.01 par value per share | | | | | | 3,565,000 | | | | | | $ | 21.00 | | | | | | $ | 74,865,000.00 | | | | | | $ | 9,717.48 | | |
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Public offering price | | | | $ | | | | | $ | | | ||
Underwriting discount(1) | | | | $ | | | | | $ | | | ||
Proceeds to Professional Holding Corp., before expenses | | | | $ | | | | | $ | | | ||
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| CAPITALIZATION | | | | | | | |
| DILUTION | | | | | | | |
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| UNDERWRITING | | | | | | | |
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| EXPERTS | | | | | | | |
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| | | | | F-1 | | | |
| | | | | F-55 | | |
| 2008 | | | • Professional Bank raised $13.9 million in capital and commenced banking operations from a single branch in South Miami, FL | |
| 2013 | | | • Abel L. Iglesias joined the Bank as an Executive Vice President and Chief Lending Officer in April • Hired a team from a South Florida-based regional bank in May • Daniel R. Sheehan, one of our founders, appointed as Chairman of the Bank Board of Directors, or Bank Board, in • Ended the year with approximately $217 million in total assets | |
| 2014 | | | • Opened our second branch in Coral Gables, FL in January, and relocated our headquarters • Completed a $3.3 million private placement in February • Effectuated a share exchange to form Professional Holding Corp., with Professional Bank as its wholly owned subsidiary. Daniel R. Sheehan named Chairman and CEO of Professional Holding Corp. | |
| 2015 | | | • Reported total assets in excess of $250 million as of March 31 • Completed a $15.0 million private placement in April | |
| 2016 | | | • Hired a commercial and industrial, or C&I, banking team from a large national bank to establish our Palm Beach Gardens, FL loan production office in February • Established a Small Business Administration, or SBA, department with bankers from a large regional bank in February • Abel L. Iglesias assumed the role of President and Chief Executive Officer of the Bank following the unexpected passing of the Bank’s then President and Chief Executive Officer in September • Completed a core system conversion to CSI enabling a foundation for greater technological flexibility | |
| 2017 | | | • Completed an $18.9 million private placement in February • Hired a private banking team from a large national bank to establish our loan production office in Boca Raton, FL in March • Opened a loan production office in Fort Lauderdale, FL in October • Converted our Palm Beach Gardens, FL loan production office to a full-service branch in November • Reported total assets in excess of $500 million as of December 31 | |
| 2018 | | | • Hired a senior banker from a large national bank in February to establish a West Palm Beach, FL loan production office, which opened in April • Hired a new Chief Risk Officer and Chief Credit Officer • Hired a banking team from a large national bank in April for our Dadeland branch (which opened in 2019) • Hired senior bankers from a large Southeastern regional bank for our Palm Beach Gardens, FL branch in October • Hired a banking team from a large, Southeastern regional bank for our Fort Lauderdale, FL loan production office in October • Completed a $20.0 million private placement in December | |
| 2019 | | | • Hired a private banking team from a large South Florida-based bank in January to establish our Doral, FL loan production office, which opened in July • Hired treasury management bankers from a large, Southeastern regional bank in the first quarter • Converted our existing loan production office in Boca Raton, FL into a full-service branch in May • Opened our fifth branch in Miami, FL (Dadeland) in May • Hired the former president of a South Florida-based community bank and a team from a large national bank in May to establish Wellington, FL loan production office, which opened in July • In preparation of this offering to more accurately reflect his functional role, Daniel R. Sheehan assumed the title of Chief Executive Officer of the Bank in July with Abel L. Iglesias remaining as President and assuming the additional role of Chief Operating Officer of the Bank • Announced a pending merger with Marquis Bancorp, Inc. on August 12 • Reported total assets of $963.2 million as of September 30 • Opened our Digital Innovation Center in Cleveland, OH on October 28 | |
Current Locations | | | Date Loan Production Office (LPO) Opened | | | Date of Branch Opening / Conversion | | | Total Deposits as of Sept. 30, 2019 (thousands) | | |||
South Miami | | | — | | | Aug. 2008 | | | | $ | 306,683 | | |
Coral Gables | | | — | | | Jan. 2014 | | | | $ | 227,958 | | |
Palm Beach Gardens | | | Feb. 2016 | | | Nov. 2017 | | | | $ | 204,558 | | |
Boca Raton | | | Mar. 2017 | | | May 2019 | | | | $ | 71,161 | | |
Fort Lauderdale LPO | | | Oct. 2017 | | | — | | | | | — | | |
West Palm Beach LPO | | | Apr. 2018 | | | — | | | | | — | | |
Dadeland | | | — | | | May 2019 | | | | $ | 12,705 | | |
Doral LPO | | | Jul. 2019 | | | — | | | | | — | | |
Wellington LPO | | | Jul. 2019 | | | — | | | | | — | | |
| Rolando DiGasbarro | | | • Founder and principal of Windsor Investment Holdings • Former Investment Banker for Lehman Brothers • Director since 2014 | |
| Carlos M. Garcia | | | • Founder and CEO of BayBoston Managers LLC and Managing Partner of BayBoston Capital L.P. • Current member of the Financial Oversight and Management Board for Puerto Rico • Current Chairman of the Board of CFG Partners L.P. • Former interim President and CEO, COO and Senior Executive Vice President of Santander Bancorp; and former interim CEO, COO and President at Banco Santander Puerto Rico • Former President, CEO and Chairman at the Government Development Bank for Puerto Rico • Director since 2015 | |
| Jon L. Gorney | | | • Former CIO of National City Corporation • Former Chairman and CEO of National Processing Company • Director since 2017 | |
| Herbert Martens | | | • Founder of Professional Bank • Managing Partner of Advent Associates, LLC • Former President and CEO for NatCity Investment & EVP Wealth Management — National City Corporation • Director since 2008 | |
| Dr. Lawrence Schimmel | | | • Founder of Professional Bank • Chief Medical Officer of Clinigence Holdings Co. • Former Chairman of MegaBank • Former CEO of Allied Health Group • Director since 2008 | |
| Anton V. Schutz | | | • Founder and Principal of Mendon Capital Advisors Corp. • Director since 2015 | |
Market Area | | | Total Population 2020 (Estimated) | | | Change 2010 – 2020 (%) | | | Change 2020 – 2025 (%) | | | Median Household Income 2020 ($) | | | Projected Household Income Change 2020 – 2025 (%) | | | Unemployment Rate (%) | | ||||||||||||||||||
Miami-Dade County | | | | | 2,834,352 | | | | | | 13.5 | | | | | | 6.3 | | | | | | 53,537 | | | | | | 12.1 | | | | | | 3.9 | | |
Broward County | | | | | 1,981,920 | | | | | | 13.4 | | | | | | 6.3 | | | | | | 63,317 | | | | | | 11.4 | | | | | | 3.4 | | |
Palm Beach County | | | | | 1,508,665 | | | | | | 14.3 | | | | | | 6.5 | | | | | | 66,729 | | | | | | 11.2 | | | | | | 3.6 | | |
Miami-Dade MSA | | | | | 6,324,937 | | | | | | 13.7 | | | | | | 6.3 | | | | | | 60,197 | | | | | | 11.5 | | | | | | 3.5 | | |
Florida | | | | | 21,794,397 | | | | | | 15.9 | | | | | | 6.6 | | | | | | 58,586 | | | | | | 11.6 | | | | | | 3.3 | | |
United States | | | | | 330,342,293 | | | | | | 7.0 | | | | | | 3.3 | | | | | | 66,010 | | | | | | 9.9 | | | | | | 3.5 | | |
| | | At or For the Three Months Ended December 31, | | | At or For the Year Ended December 31, | | ||||||||||||||||||
(Dollars in thousands, except per share data) | | | 2019 | | | 2018 | | | 2019 | | | 2018 | | ||||||||||||
Balance Sheet Data | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and due from banks | | | | $ | 171,980 | | | | | $ | 64,842 | | | | | $ | 171,980 | | | | | $ | 64,842 | | |
Federal funds sold | | | | | 26,970 | | | | | | 22,041 | | | | | | 26,970 | | | | | | 22,041 | | |
Investment securities | | | | | 28,655 | | | | | | 20,786 | | | | | | 28,655 | | | | | | 20,786 | | |
Loans, net | | | | | 785,167 | | | | | | 601,480 | | | | | | 785,167 | | | | | | 601,480 | | |
Total assets | | | | | 1,053,047 | | | | | | 729,625 | | | | | | 1,053,047 | | | | | | 729,625 | | |
Total deposits | | | | | 892,873 | | | | | | 603,302 | | | | | | 892,873 | | | | | | 603,302 | | |
FHLB advances | | | | | 55,000 | | | | | | 40,000 | | | | | | 55,000 | | | | | | 40,000 | | |
Total liabilities | | | | | 973,745 | | | | | | 649,944 | | | | | | 973,745 | | | | | | 649,944 | | |
Total shareholders’ equity | | | | | 79,302 | | | | | | 79,681 | | | | | | 79,302 | | | | | | 79,681 | | |
Tangible common equity (1) | | | | | 79,302 | | | | | | 79,681 | | | | | | 79,302 | | | | | | 79,681 | | |
Income Statement Data | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest income | | | | $ | 10,610 | | | | | $ | 8,308 | | | | | $ | 39,210 | | | | | $ | 27,750 | | |
Total interest expense | | | | | 3,172 | | | | | | 2,002 | | | | | | 11,167 | | | | | | 5,837 | | |
Net interest income | | | | | 7,438 | | | | | | 6,306 | | | | | | 28,043 | | | | | | 21,913 | | |
Provision for loan losses | | | | | 100 | | | | | | 360 | | | | | | 862 | | | | | | 1,150 | | |
Total noninterest income | | | | | 681 | | | | | | 556 | | | | | | 2,808 | | | | | | 1,874 | | |
Total noninterest expense | | | | | 6,909 | | | | | | 5,656 | | | | | | 26,997 | | | | | | 19,862 | | |
Income before taxes | | | | | 1,110 | | | | | | 846 | | | | | | 2,992 | | | | | | 2,775 | | |
Income tax expense | | | | | 122 | | | | | | 60 | | | | | | 656 | | | | | | 669 | | |
Net income | | | | | 988 | | | | | | 786 | | | | | | 2,336 | | | | | | 2,106 | | |
Selected Company Performance Ratios | | | | | | | | | | | | | | | | | | | | | | | | | |
Return on average assets (ROAA) | | | | | 0.39% | | | | | | 0.43% | | | | | | 0.26% | | | | | | 0.33% | | |
Return on average equity (ROAE) | | | | | 5.03% | | | | | | 4.81% | | | | | | 2.94% | | | | | | 3.52% | | |
Return on average tangible common equity (ROATCE) | | | | | 5.03% | | | | | | 4.81% | | | | | | 2.94% | | | | | | 3.52% | | |
Net interest margin | | | | | 3.08% | | | | | | 3.62% | | | | | | 3.34% | | | | | | 3.60% | | |
Noninterest income / average assets | | | | | 0.27% | | | | | | 0.31% | | | | | | 0.32% | | | | | | 0.29% | | |
Noninterest expense / average assets | | | | | 2.70% | | | | | | 3.11% | | | | | | 3.04% | | | | | | 3.10% | | |
Net operating income / average assets | | | | | 2.91% | | | | | | 3.46% | | | | | | 3.15% | | | | | | 3.42% | | |
Efficiency Ratio | | | | | 85.10% | | | | | | 82.42% | | | | | | 87.51% | | | | | | 83.50% | | |
Per Share Data | | | | | | | | | | | | | | | | | | | | | | | | | |
Common stock issued and outstanding | | | | | 5,867,446 | | | | | | 5,923,884 | | | | | | 5,867,446 | | | | | | 5,923,884 | | |
Basic weighted average shares outstanding | | | | | 5,755,707 | | | | | | 5,186,806 | | | | | | 5,850,816 | | | | | | 4,910,402 | | |
Diluted weighted average shares outstanding | | | | | 5,793,494 | | | | | | 5,406,306 | | | | | | 5,888,607 | | | | | | 5,129,314 | | |
Basic earnings per share | | | | $ | 0.17 | | | | | $ | 0.15 | | | | | $ | 0.40 | | | | | $ | 0.43 | | |
Diluted earnings per share | | | | | 0.17 | | | | | | 0.15 | | | | | | 0.40 | | | | | | 0.41 | | |
Book value per share | | | | | 13.52 | | | | | | 13.45 | | | | | | 13.52 | | | | | | 13.45 | | |
Tangible book value per share(1) | | | | | 13.52 | | | | | | 13.45 | | | | | | 13.52 | | | | | | 13.45 | | |
| | | At or For the Three Months Ended December 31, | | | At or For the Year Ended December 31, | | ||||||||||||||||||
(Dollars in thousands, except per share data) | | | 2019 | | | 2018 | | | 2019 | | | 2018 | | ||||||||||||
Asset Quality Ratios | | | | | | | | | | | | | | | | | | | | | | | | | |
Nonperforming assets ($) | | | | $ | 2,646 | | | | | $ | — | | | | | $ | 2,646 | | | | | $ | — | | |
Nonperforming assets / assets | | | | | 0.25% | | | | | | 0.00% | | | | | | 0.25% | | | | | | 0.00% | | |
Nonperforming loans / loans | | | | | 0.34% | | | | | | 0.00% | | | | | | 0.34% | | | | | | 0.00% | | |
Net charge-offs (recoveries) to average loans | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | |
Allowance for loan losses / total loans | | | | | 0.83% | | | | | | 0.94% | | | | | | 0.83% | | | | | | 0.94% | | |
Allowance for loan losses / nonperforming loans | | | | | 247.46% | | | | | | N/A | | | | | | 247.46% | | | | | | N/A | | |
Company Capital Ratios | | | | | | | | | | | | | | | | | | | | | | | | | |
Tier 1 leverage ratio | | | | | 7.8% | | | | | | 11.0% | | | | | | 7.8% | | | | | | 11.0% | | |
Common equity tier 1 capital ratio | | | | | 10.6% | | | | | | 15.7% | | | | | | 10.6% | | | | | | 15.7% | | |
Tier 1 risk-based capital ratio | | | | | 10.6% | | | | | | 15.7% | | | | | | 10.6% | | | | | | 15.7% | | |
Total risk-based capital ratio | | | | | 11.6% | | | | | | 16.9% | | | | | | 11.6% | | | | | | 16.9% | | |
Tangible common equity / tangible assets(1) | | | | | 7.5% | | | | | | 10.9% | | | | | | 7.5% | | | | | | 10.9% | | |
Bank Capital Ratios | | | | | | | | | | | | | | | | | | | | | | | | | |
Tier 1 leverage ratio | | | | | 8.7% | | | | | | 8.6% | | | | | | 8.7% | | | | | | 8.6% | | |
Common equity tier 1 capital ratio | | | | | 11.8% | | | | | | 12.3% | | | | | | 11.8% | | | | | | 12.3% | | |
Tier 1 risk-based capital ratio | | | | | 11.8% | | | | | | 12.3% | | | | | | 11.8% | | | | | | 12.3% | | |
Total risk-based capital ratio | | | | | 12.8% | | | | | | 13.4% | | | | | | 12.8% | | | | | | 13.4% | | |
Tangible common equity / tangible assets(1) | | | | | 8.4% | | | | | | 8.5% | | | | | | 8.4% | | | | | | 8.5% | | |
| | | At or For the Three Months Ended December 31, | | | At or For the Year Ended December 31, | | ||||||||||||||||||
(Dollars in thousands, except per share data) | | | 2019 | | | 2018 | | | 2019 | | | 2018 | | ||||||||||||
Balance Sheet Data | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and due from banks | | | | $ | 65,000 | | | | | $ | 66,628 | | | | | $ | 65,000 | | | | | $ | 66,628 | | |
Federal funds sold | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Investment Securities | | | | | 30,615 | | | | | | 33,520 | | | | | | 30,615 | | | | | | 33,520 | | |
Loans, net | | | | | 542,568 | | | | | | 551,364 | | | | | | 542,568 | | | | | | 551,364 | | |
Total assets | | | | | 645,971 | | | | | | 662,324 | | | | | | 645,971 | | | | | | 662,324 | | |
Total deposits | | | | | 525,935 | | | | | | 524,231 | | | | | | 525,935 | | | | | | 524,231 | | |
FHLB advances | | | | | 50,000 | | | | | | 75,000 | | | | | | 50,000 | | | | | | 75,000 | | |
Total liabilities | | | | | 587,701 | | | | | | 611,519 | | | | | | 587,701 | | | | | | 611,519 | | |
Total shareholders’ equity | | | | | 58,269 | | | | | | 50,805 | | | | | | 58,269 | | | | | | 50,805 | | |
Tangible common equity(1) | | | | | 58,269 | | | | | | 50,805 | | | | | | 58,269 | | | | | | 50,805 | | |
Income Statement Data | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest income | | | | $ | 7,807 | | | | | $ | 7,802 | | | | | $ | 32,123 | | | | | $ | 28,240 | | |
Total interest expense | | | | | 2,553 | | | | | | 2,182 | | | | | | 10,217 | | | | | | 7,073 | | |
Net interest income | | | | | 5,254 | | | | | | 5,620 | | | | | | 21,906 | | | | | | 21,167 | | |
Provision for loan losses | | | | | (216) | | | | | | 437 | | | | | | 151 | | | | | | 1,149 | | |
Total noninterest income | | | | | 299 | | | | | | 427 | | | | | | 1,440 | | | | | | 1,257 | | |
Total noninterest expense | | | | | 3,690 | | | | | | 3,271 | | | | | | 13,811 | | | | | | 12,326 | | |
Income before taxes | | | | | 2,079 | | | | | | 2,339 | | | | | | 9,384 | | | | | | 8,949 | | |
Income tax expense | | | | | 464 | | | | | | 405 | | | | | | 2,308 | | | | | | 2,141 | | |
Net income | | | | | 1,615 | | | | | | 1,934 | | | | | | 7,076 | | | | | | 6,808 | | |
Selected MBI Performance Ratios | | | | | | | | | | | | | | | | | | | | | | | | | |
Return on average assets (ROAA) | | | | | 0.93% | | | | | | 1.22% | | | | | | 1.06% | | | | | | 1.13% | | |
Return on average equity (ROAE) | | | | | 11.11% | | | | | | 15.40% | | | | | | 12.88% | | | | | | 14.48% | | |
Return on average tangible common equity (ROATCE) | | | | | 11.11% | | | | | | 15.40% | | | | | | 12.88% | | | | | | 14.48% | | |
Net interest margin | | | | | 3.11% | | | | | | 3.64% | | | | | | 3.38% | | | | | | 3.60% | | |
Noninterest income / average assets | | | | | 0.17% | | | | | | 0.27% | | | | | | 0.22% | | | | | | 0.21% | | |
Noninterest expense / average assets | | | | | 2.12% | | | | | | 2.06% | | | | | | 2.07% | | | | | | 2.05% | | |
Net operating income /average assets | | | | | 0.93% | | | | | | 1.22% | | | | | | 1.06% | | | | | | 1.13% | | |
Efficiency Ratio | | | | | 66.45% | | | | | | 54.09% | | | | | | 59.16% | | | | | | 54.97% | | |
Per Share Data | | | | | | | | | | | | | | | | | | | | | | | | | |
Common stock issued and outstanding | | | | | 3,419,188 | | | | | | 3,411,946 | | | | | | 3,419,188 | | | | | | 3,411,946 | | |
Basic weighted average shares outstanding | | | | | 3,419,188 | | | | | | 3,411,946 | | | | | | 3,417,344 | | | | | | 3,407,680 | | |
Diluted weighted average shares outstanding | | | | | 3,818,561 | | | | | | 3,539,558 | | | | | | 3,802,754 | | | | | | 3,562,681 | | |
Basic earnings per share | | | | $ | 0.47 | | | | | $ | 0.57 | | | | | $ | 2.07 | | | | | $ | 2.00 | | |
Diluted earnings per share | | | | $ | 0.42 | | | | | $ | 0.55 | | | | | $ | 1.86 | | | | | $ | 1.91 | | |
Book value per share | | | | $ | 17.04 | | | | | $ | 14.89 | | | | | $ | 17.04 | | | | | $ | 14.89 | | |
Tangible book value per share(1) | | | | $ | 17.04 | | | | | $ | 14.89 | | | | | $ | 17.04 | | | | | $ | 14.89 | | |
| | | At or For the Three Months Ended December 31, | | | At or For the Year Ended December 31, | | ||||||||||||||||||
(Dollars in thousands, except per share data) | | | 2019 | | | 2018 | | | 2019 | | | 2018 | | ||||||||||||
Asset Quality Ratios | | | | | | | | | | | | | | | | | | | | | | | | | |
Nonperforming assets ($) | | | | $ | 110 | | | | | $ | 2,112 | | | | | $ | 110 | | | | | $ | 2,112 | | |
Nonperforming assets / assets | | | | | 0.02% | | | | | | 0.32% | | | | | | 0.02% | | | | | | 0.32% | | |
Nonperforming loans / loans | | | | | 0.02% | | | | | | 0.07% | | | | | | 0.02% | | | | | | 0.07% | | |
Net charge-offs (recoveries) to average loans | | | | | 0.00% | | | | | | 0.09% | | | | | | (0.01%) | | | | | | 0.09% | | |
Allowance for loan losses / total loans | | | | | 0.93% | | | | | | 0.87% | | | | | | 0.93% | | | | | | 0.87% | | |
Allowance for loan losses / nonperforming loans | | | | | 4,616.36% | | | | | | 1,203.71% | | | | | | 4,616.36% | | | | | | 1,203.71% | | |
MBI Capital Ratios | | | | | | | | | | | | | | | | | | | | | | | | | |
Tier 1 leverage ratio | | | | | 8.4% | | | | | | 8.1% | | | | | | 8.4% | | | | | | 8.1% | | |
Common equity tier 1 capital ratio | | | | | 10.2% | | | | | | 8.9% | | | | | | 10.2% | | | | | | 8.9% | | |
Tier 1 risk-based capital ratio | | | | | 10.2% | | | | | | 8.9% | | | | | | 10.2% | | | | | | 8.9% | | |
Total risk-based capital ratio | | | | | 12.9% | | | | | | 11.5% | | | | | | 12.9% | | | | | | 11.5% | | |
Tangible common equity / tangible assets(1) | | | | | 9.0% | | | | | | 7.7% | | | | | | 9.0% | | | | | | 7.7% | | |
Marquis Bank Capital Ratios | | | | | | | | | | | | | | | | | | | | | | | | | |
Tier 1 leverage ratio | | | | | 9.8% | | | | | | 9.5% | | | | | | 9.8% | | | | | | 9.5% | | |
Common equity tier 1 capital ratio | | | | | 11.8% | | | | | | 10.5% | | | | | | 11.8% | | | | | | 10.5% | | |
Tier 1 risk-based capital ratio | | | | | 11.8% | | | | | | 10.5% | | | | | | 11.8% | | | | | | 10.5% | | |
Total risk-based capital ratio | | | | | 12.8% | | | | | | 11.4% | | | | | | 12.8% | | | | | | 11.4% | | |
Tangible common equity / tangible assets(1) | | | | | 10.4% | | | | | | 9.0% | | | | | | 10.4% | | | | | | 9.0% | | |
| | | At or For the Quarter Ended December 31, | | | At or For the Year Ended December 31, | | ||||||||||||||||||
(Dollars in thousands, except per share data) | | | 2019 | | | 2018 | | | 2019 | | | 2018 | | ||||||||||||
Tangible Common Equity | | | | | | | | | | | | | | | | | | | | | | | | | |
Total shareholders’ equity | | | | $ | 79,302 | | | | | $ | 79,681 | | | | | $ | 79,302 | | | | | $ | 79,681 | | |
Less: intangible assets | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Tangible common equity | | | | | 79,302 | | | | | | 79,681 | | | | | | 79,302 | | | | | | 79,681 | | |
| | | At or For the Quarter Ended December 31, | | | At or For the Year Ended December 31, | | ||||||||||||||||||
(Dollars in thousands, except per share data) | | | 2019 | | | 2018 | | | 2019 | | | 2018 | | ||||||||||||
Tangible Common Equity to Tangible Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | | | $ | 1,053,047 | | | | | $ | 729,625 | | | | | $ | 1,053,047 | | | | | $ | 729,625 | | |
Less: intangible assets | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Tangible assets | | | | $ | 1,053,047 | | | | | $ | 729,625 | | | | | $ | 1,053,047 | | | | | $ | 729,625 | | |
Tangible common equity to tangible assets | | | | | 7.5% | | | | | | 10.9% | | | | | | 7.5% | | | | | | 10.9% | | |
Tangible Book Value Per Share | | | | | | | | | | | | | | | | | | | | | | | | | |
Total shareholders’ equity | | | | $ | 79,302 | | | | | $ | 79,681 | | | | | $ | 79,302 | | | | | $ | 79,681 | | |
Less: intangible assets | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Tangible common equity | | | | $ | 79,302 | | | | | $ | 79,681 | | | | | $ | 79,302 | | | | | $ | 79,681 | | |
Divide by shares of common stock outstanding | | | | | 5,867,446 | | | | | | 5,923,884 | | | | | | 5,867,446 | | | | | | 5,923,884 | | |
Tangible book value per share | | | | $ | 13.52 | | | | | $ | 13.45 | | | | | $ | 13.52 | | | | | $ | 13.45 | | |
| | | At or For the Quarter Ended December 31, | | | At or For the Year Ended December 31, | | ||||||||||||||||||
(Dollars in thousands, except per share data) | | | 2019 | | | 2018 | | | 2019 | | | 2018 | | ||||||||||||
Tangible Common Equity | | | | | | ||||||||||||||||||||
Total shareholders’ equity | | | | $ | 58,269 | | | | | $ | 50,805 | | | | | $ | 58,269 | | | | | $ | 50,805 | | |
Less: intangible assets | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Tangible common equity | | | | $ | 58,269 | | | | | $ | 50,805 | | | | | $ | 58,269 | | | | | $ | 50,805 | | |
Tangible Common Equity to Tangible Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | | | $ | 645,971 | | | | | $ | 662,324 | | | | | $ | 645,971 | | | | | $ | 662,324 | | |
Less: intangible assets | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Tangible assets | | | | $ | 645,971 | | | | | $ | 662,324 | | | | | $ | 645,971 | | | | | $ | 662,324 | | |
Tangible common equity to tangible assets | | | | | 9.0% | | | | | | 7.7% | | | | | | 9.0% | | | | | | 7.7% | | |
Tangible Book Value Per Share | | | | | | | | | | | | | | | | | | | | | | | | | |
Total shareholders’ equity | | | | $ | 58,269 | | | | | $ | 50,805 | | | | | $ | 58,269 | | | | | $ | 50,805 | | |
Less: intangible assets | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Tangible common equity | | | | $ | 58,269 | | | | | $ | 50,805 | | | | | $ | 58,269 | | | | | $ | 50,805 | | |
Divide by shares of common stock outstanding | | | | | 3,419,188 | | | | | | 3,411,946 | | | | | | 3,419,188 | | | | | | 3,411,946 | | |
Tangible book value per share | | | | $ | 17.04 | | | | | $ | 14.89 | | | | | $ | 17.04 | | | | | $ | 14.89 | | |
(Dollars in thousands, except per share information) | | | As of and for the Nine Months Ended September 30, | | | As of and for the Years Ended December 31, | | ||||||||||||||||||||||||
| 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||||
Balance Sheet Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and due from banks | | | | $ | 104,097 | | | | | $ | 55,344 | | | | | $ | 64,842 | | | | | $ | 20,836 | | | | | $ | 6,553 | | |
Federal funds sold | | | | | 26,398 | | | | | | 21,127 | | | | | | 22,041 | | | | | | 16,290 | | | | | | 10,167 | | |
Investment Securities | | | | | 29,435 | | | | | | 21,447 | | | | | | 20,786 | | | | | | 27,036 | | | | | | 31,176 | | |
Loans, net | | | | | 764,663 | | | | | | 587,564 | | | | | | 601,480 | | | | | | 465,587 | | | | | | 320,650 | | |
Total assets | | | | | 963,193 | | | | | | 705,480 | | | | | | 729,625 | | | | | | 547,021 | | | | | | 385,184 | | |
Total deposits | | | | | 823,065 | | | | | | 603,561 | | | | | | 603,302 | | | | | | 459,174 | | | | | | 323,922 | | |
FHLB advances | | | | | 50,000 | | | | | | 40,000 | | | | | | 40,000 | | | | | | 25,000 | | | | | | 20,000 | | |
Total liabilities | | | | | 885,221 | | | | | | 646,629 | | | | | | 649,944 | | | | | | 489,429 | | | | | | 348,278 | | |
Total shareholders’ equity | | | | | 77,972 | | | | | | 58,851 | | | | | | 79,681 | | | | | | 57,592 | | | | | | 36,906 | | |
Tangible common equity(2) | | | | | 77,972 | | | | | | 58,851 | | | | | | 79,681 | | | | | | 57,592 | | | | | | 36,906 | | |
Income Statement Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest income | | | | $ | 28,600 | | | | | $ | 19,442 | | | | | $ | 27,750 | | | | | $ | 18,857 | | | | | $ | 14,265 | | |
Total interest expense | | | | | 7,995 | | | | | | 3,835 | | | | | | 5,837 | | | | | | 2,869 | | | | | | 2,122 | | |
Net interest income | | | | | 20,605 | | | | | | 15,607 | | | | | | 21,913 | | | | | | 15,988 | | | | | | 12,143 | | |
Provision for loan losses | | | | | 762 | | | | | | 790 | | | | | | 1,150 | | | | | | 991 | | | | | | 1,065 | | |
Total noninterest income | | | | | 2,127 | | | | | | 1,318 | | | | | | 1,874 | | | | | | 1,786 | | | | | | 1,369 | | |
Total noninterest expense | | | | | 20,088 | | | | | | 14,206 | | | | | | 19,862 | | | | | | 13,125 | | | | | | 10,573 | | |
Income before taxes | | | | | 1,882 | | | | | | 1,929 | | | | | | 2,775 | | | | | | 3,658 | | | | | | 1,874 | | |
Income tax expense | | | | | 534 | | | | | | 609 | | | | | | 669 | | | | | | 1,844 | | | | | | 743 | | |
Net income | | | | | 1,348 | | | | | | 1,320 | | | | | | 2,106 | | | | | | 1,814 | | | | | | 1,131 | | |
Composition of Loan Portfolio | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | 262,761 | | | | | $ | 175,358 | | | | | $ | 191,930 | | | | | $ | 156,720 | | | | | $ | 116,208 | | |
Residential real estate | | | | | 349,306 | | | | | | 300,284 | | | | | | 311,404 | | | | | | 224,246 | | | | | | 140,160 | | |
Commercial | | | | | 114,003 | | | | | | 95,569 | | | | | | 83,276 | | | | | | 59,065 | | | | | | 37,873 | | |
Construction and development | | | | | 37,925 | | | | | | 18,496 | | | | | | 17,608 | | | | | | 28,272 | | | | | | 29,036 | | |
Consumer and other loans | | | | | 7,900 | | | | | | 3,594 | | | | | | 3,244 | | | | | | 1,755 | | | | | | 1,025 | | |
Deposits | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NOW Accounts | | | | $ | 37,297 | | | | | $ | 25,996 | | | | | $ | 25,088 | | | | | $ | 19,515 | | | | | $ | 12,087 | | |
Money market accounts | | | | | 475,670 | | | | | | 346,416 | | | | | | 352,002 | | | | | | 260,850 | | | | | | 146,829 | | |
Savings accounts | | | | | 10,188 | | | | | | 2,392 | | | | | | 2,389 | | | | | | 2,660 | | | | | | 2,343 | | |
Certificates of deposit | | | | | 111,983 | | | | | | 84,821 | | | | | | 93,578 | | | | | | 75,302 | | | | | | 98,901 | | |
Noninterest-bearing deposits | | | | | 187,927 | | | | | | 143,936 | | | | | | 130,245 | | | | | | 100,847 | | | | | | 63,762 | | |
(Dollars in thousands, except per share information) | | | As of and for the Nine Months Ended September 30, | | | As of and for the Years Ended December 31, | | ||||||||||||||||||||||||
| 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||||
Selected Company Performance Ratios | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Return on average assets (ROAA)(1) | | | | | 0.21% | | | | | | 0.29% | | | | | | 0.33% | | | | | | 0.39% | | | | | | 0.33% | | |
Return on average equity (ROAE)(1) | | | | | 2.25% | | | | | | 3.04% | | | | | | 3.52% | | | | | | 3.30% | | | | | | 3.15% | | |
Return on average tangible common equity (ROATCE)(1)(2) | | | | | 2.25% | | | | | | 3.04% | | | | | | 3.52% | | | | | | 3.30% | | | | | | 3.15% | | |
Net interest margin(3) | | | | | 3.43% | | | | | | 3.59% | | | | | | 3.60% | | | | | | 3.68% | | | | | | 3.59% | | |
Noninterest income / average assets | | | | | 0.34% | | | | | | 0.29% | | | | | | 0.29% | | | | | | 0.39% | | | | | | 0.38% | | |
Noninterest expense / average assets | | | | | 3.17% | | | | | | 3.09% | | | | | | 3.10% | | | | | | 2.85% | | | | | | 2.95% | | |
Net operating income / average assets | | | | | 3.25% | | | | | | 3.40% | | | | | | 3.42% | | | | | | 3.47% | | | | | | 3.37% | | |
Efficiency ratio(4) | | | | | 88.37% | | | | | | 83.94% | | | | | | 83.50% | | | | | | 73.84% | | | | | | 78.25% | | |
Per Share Data(6) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common stock issued and outstanding | | | | | 5,740,486 | | | | | | 4,818,267 | | | | | | 5,923,884 | | | | | | 4,818,267 | | | | | | 3,513,478 | | |
Basic weighted average shares outstanding | | | | | 5,882,519 | | | | | | 4,818,267 | | | | | | 4,910,402 | | | | | | 4,705,865 | | | | | | 3,510,365 | | |
Diluted weighted average shares outstanding | | | | | 6,085,397 | | | | | | 5,036,983 | | | | | | 5,129,314 | | | | | | 4,913,707 | | | | | | 3,708,461 | | |
Basic earnings per share | | | | $ | 0.23 | | | | | $ | 0.27 | | | | | $ | 0.43 | | | | | $ | 0.39 | | | | | $ | 0.32 | | |
Diluted earnings per share | | | | | 0.22 | | | | | | 0.26 | | | | | | 0.41 | | | | | | 0.37 | | | | | | 0.30 | | |
Book value per share | | | | | 13.58 | | | | | | 12.21 | | | | | | 13.45 | | | | | | 11.95 | | | | | | 10.50 | | |
Tangible book value per share(2) | | | | | 13.58 | | | | | | 12.21 | | | | | | 13.45 | | | | | | 11.95 | | | | | | 10.50 | | |
Asset Quality Ratios | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Nonperforming assets ($) | | | | $ | 4,730 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Nonperforming assets / assets | | | | | 0.49% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | |
Nonperforming loans / loans | | | | | 0.62% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | |
Net charge-offs (recoveries) to average loans | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | |
Allowance for loan losses / total loans | | | | | 0.84% | | | | | | 0.90% | | | | | | 0.94% | | | | | | 0.96% | | | | | | 1.09% | | |
Allowance for loan losses / nonperforming loans(7) | | | | | 136.34% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Company Capital Ratios | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tier 1 leverage ratio | | | | | 8.4% | | | | | | 8.8% | | | | | | 11.0% | | | | | | 11.3% | | | | | | 9.8% | | |
Common equity tier 1 capital ratio | | | | | 11.5% | | | | | | 11.8% | | | | | | 15.7% | | | | | | 14.1% | | | | | | 12.0% | | |
Tier 1 risk-based capital ratio | | | | | 11.5% | | | | | | 11.8% | | | | | | 15.7% | | | | | | 14.1% | | | | | | 12.0% | | |
Total risk-based capital ratio | | | | | 12.5% | | | | | | 12.9% | | | | | | 16.9% | | | | | | 15.2% | | | | | | 13.2% | | |
Tangible common equity / tangible assets | | | | | 8.1% | | | | | | 8.4% | | | | | | 10.9% | | | | | | 10.5% | | | | | | 9.6% | | |
Bank Capital Ratios | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tier 1 leverage ratio | | | | | 8.3% | | | | | | 8.5% | | | | | | 8.6% | | | | | | 8.7% | | | | | | 8.8% | | |
Common equity tier 1 capital ratio | | | | | 11.3% | | | | | | 11.5% | | | | | | 12.3% | | | | | | 10.8% | | | | | | 10.7% | | |
Tier 1 risk-based capital ratio | | | | | 11.3% | | | | | | 11.5% | | | | | | 12.3% | | | | | | 10.8% | | | | | | 10.7% | | |
Total risk-based capital ratio | | | | | 12.4% | | | | | | 12.6% | | | | | | 13.4% | | | | | | 12.0% | | | | | | 12.0% | | |
Tangible common equity / tangible assets | | | | | 8.0% | | | | | | 8.2% | | | | | | 8.5% | | | | | | 8.1% | | | | | | 8.5% | | |
(Dollars in thousands, except per share information) | | | As of and for the Nine Months Ended September 30, | | | As of and for the Years Ended December 31, | | ||||||||||||||||||||||||
| 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||||
Selected Company Performance Ratios | | | | | | | | | | | | | | | | | | | | | | | | | | | | ��� | | | |
Return on average assets (ROAA)(1) | | | | | 0.21% | | | | | | 0.29% | | | | | | 0.33% | | | | | | 0.39% | | | | | | 0.33% | | |
Return on average equity (ROAE)(1) | | | | | 2.25% | | | | | | 3.04% | | | | | | 3.52% | | | | | | 3.30% | | | | | | 3.15% | | |
Return on average tangible common equity (ROATCE)(1)(2) | | | | | 2.25% | | | | | | 3.04% | | | | | | 3.52% | | | | | | 3.30% | | | | | | 3.15% | | |
Net interest margin(3) | | | | | 3.43% | | | | | | 3.59% | | | | | | 3.60% | | | | | | 3.68% | | | | | | 3.59% | | |
Noninterest income / average assets | | | | | 0.34% | | | | | | 0.29% | | | | | | 0.29% | | | | | | 0.39% | | | | | | 0.38% | | |
Noninterest expense / average assets | | | | | 3.17% | | | | | | 3.09% | | | | | | 3.10% | | | | | | 2.85% | | | | | | 2.95% | | |
Net operating income / average assets | | | | | 3.25% | | | | | | 3.40% | | | | | | 3.42% | | | | | | 3.47% | | | | | | 3.37% | | |
Efficiency ratio(4) | | | | | 88.37% | | | | | | 83.94% | | | | | | 83.50% | | | | | | 73.84% | | | | | | 78.25% | | |
Per Share Data(6) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common stock issued and outstanding | | | | | 5,740,486 | | | | | | 4,818,267 | | | | | | 5,923,884 | | | | | | 4,818,267 | | | | | | 3,513,478 | | |
Basic weighted average shares outstanding | | | | | 5,882,519 | | | | | | 4,818,267 | | | | | | 4,910,402 | | | | | | 4,705,865 | | | | | | 3,510,365 | | |
Diluted weighted average shares outstanding | | | | | 6,085,397 | | | | | | 5,036,983 | | | | | | 5,129,314 | | | | | | 4,913,707 | | | | | | 3,708,461 | | |
Basic earnings per share | | | | $ | 0.23 | | | | | $ | 0.27 | | | | | $ | 0.43 | | | | | $ | 0.39 | | | | | $ | 0.32 | | |
Diluted earnings per share | | | | | 0.22 | | | | | | 0.26 | | | | | | 0.41 | | | | | | 0.37 | | | | | | 0.30 | | |
Book value per share | | | | | 13.58 | | | | | | 12.21 | | | | | | 13.45 | | | | | | 11.95 | | | | | | 10.50 | | |
Tangible book value per share(2) | | | | | 13.58 | | | | | | 12.21 | | | | | | 13.45 | | | | | | 11.95 | | | | | | 10.50 | | |
Asset Quality Ratios | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Nonperforming assets ($) | | | | $ | 4,730 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Nonperforming assets / assets | | | | | 0.49% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | |
Nonperforming loans / loans | | | | | 0.62% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | |
Net charge-offs (recoveries) to average loans | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | |
Allowance for loan losses / total loans | | | | | 0.84% | | | | | | 0.90% | | | | | | 0.94% | | | | | | 0.96% | | | | | | 1.09% | | |
Allowance for loan losses / nonperforming loans(7) | | | | | 136.34% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Company Capital Ratios | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tier 1 leverage ratio | | | | | 8.4% | | | | | | 8.8% | | | | | | 11.0% | | | | | | 11.3% | | | | | | 9.8% | | |
Common equity tier 1 capital ratio | | | | | 11.5% | | | | | | 11.8% | | | | | | 15.7% | | | | | | 14.1% | | | | | | 12.0% | | |
Tier 1 risk-based capital ratio | | | | | 11.5% | | | | | | 11.8% | | | | | | 15.7% | | | | | | 14.1% | | | | | | 12.0% | | |
Total risk-based capital ratio | | | | | 12.5% | | | | | | 12.9% | | | | | | 16.9% | | | | | | 15.2% | | | | | | 13.2% | | |
Tangible common equity / tangible assets(2) | | | | | 8.1% | | | | | | 8.4% | | | | | | 10.9% | | | | | | 10.5% | | | | | | 9.6% | | |
Bank Capital Ratios | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tier 1 leverage ratio | | | | | 8.3% | | | | | | 8.5% | | | | | | 8.6% | | | | | | 8.7% | | | | | | 8.8% | | |
Common equity tier 1 capital ratio | | | | | 11.3% | | | | | | 11.5% | | | | | | 12.3% | | | | | | 10.8% | | | | | | 10.7% | | |
Tier 1 risk-based capital ratio | | | | | 11.3% | | | | | | 11.5% | | | | | | 12.3% | | | | | | 10.8% | | | | | | 10.7% | | |
Total risk-based capital ratio | | | | | 12.4% | | | | | | 12.6% | | | | | | 13.4% | | | | | | 12.0% | | | | | | 12.0% | | |
Tangible common equity / tangible assets(2) | | | | | 8.0% | | | | | | 8.2% | | | | | | 8.5% | | | | | | 8.1% | | | | | | 8.5% | | |
(Dollars in thousands, except per share information) | | | As of and for the Nine Months Ended September 30, | | | As of and for the Years Ended December 31, | | ||||||||||||||||||||||||
| 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||||
Balance Sheet Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and due from banks | | | | $ | 80,790 | | | | | $ | 66,487 | | | | | $ | 66,628 | | | | | $ | 56,016 | | | | | $ | 48,616 | | |
Federal funds sold | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Investment securities | | | | | 27,668 | | | | | | 35,035 | | | | | | 33,520 | | | | | | 18,264 | | | | | | 15,003 | | |
Loans, net | | | | | 559,975 | | | | | | 533,967 | | | | | | 551,364 | | | | | | 458,869 | | | | | | 361,036 | | |
Total assets | | | | | 676,819 | | | | | | 643,570 | | | | | | 662,324 | | | | | | 539,184 | | | | | | 432,813 | | |
Total deposits | | | | | 577,906 | | | | | | 522,960 | | | | | | 524,231 | | | | | | 443,965 | | | | | | 347,127 | | |
FHLB advances | | | | | 30,000 | | | | | | 60,000 | | | | | | 75,000 | | | | | | 39,000 | | | | | | 36,000 | | |
Total liabilities | | | | | 620,375 | | | | | | 595,169 | | | | | | 611,519 | | | | | | 496,037 | | | | | | 394,211 | | |
Total shareholders’ equity | | | | | 56,444 | | | | | | 48,401 | | | | | | 50,805 | | | | | | 43,147 | | | | | | 38,601 | | |
Tangible common equity(2) | | | | | 56,444 | | | | | | 48,401 | | | | | | 50,805 | | | | | | 43,147 | | | | | | 38,601 | | |
Income Statement Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest income | | | | $ | 24,317 | | | | | $ | 20,438 | | | | | $ | 28,240 | | | | | $ | 21,303 | | | | | $ | 16,765 | | |
Total interest expense | | | | | 7,664 | | | | | | 4,891 | | | | | | 7,073 | | | | | | 4,012 | | | | | | 2,625 | | |
Net interest income | | | | | 16,653 | | | | | | 15,546 | | | | | | 21,167 | | | | | | 17,292 | | | | | | 14,140 | | |
Provision for loan losses | | | | | 367 | | | | | | 712 | | | | | | 1,149 | | | | | | 921 | | | | | | 640 | | |
Total noninterest income | | | | | 1,140 | | | | | | 830 | | | | | | 1,257 | | | | | | 1,309 | | | | | | 1,168 | | |
Total noninterest expense | | | | | 10,121 | | | | | | 9,054 | | | | | | 12,326 | | | | | | 10,637 | | | | | | 8,975 | | |
Income before taxes | | | | | 7,305 | | | | | | 6,611 | | | | | | 8,949 | | | | | | 7,042 | | | | | | 5,693 | | |
Income tax expense | | | | | 1,844 | | | | | | 1,737 | | | | | | 2,141 | | | | | | 3,080 | | | | | | 2,214 | | |
Net income | | | | | 5,461 | | | | | | 4,874 | | | | | | 6,808 | | | | | | 3,963 | | | | | | 3,479 | | |
Composition of Loan Portfolio | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | 404,087 | | | | | $ | 372,252 | | | | | $ | 384,697 | | | | | $ | 298,677 | | | | | $ | 240,623 | | |
Residential real estate | | | | | 64,985 | | | | | | 66,022 | | | | | | 69,568 | | | | | | 72,006 | | | | | | 60,500 | | |
Commercial | | | | | 72,902 | | | | | | 75,563 | | | | | | 80,172 | | | | | | 61,661 | | | | | | 46,408 | | |
Construction and development | | | | | 18,713 | | | | | | 22,129 | | | | | | 18,747 | | | | | | 28,629 | | | | | | 13,932 | | |
Consumer and other loans | | | | | 4,882 | | | | | | 3,180 | | | | | | 3,408 | | | | | | 2,210 | | | | | | 3,061 | | |
Deposits | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NOW accounts | | | | $ | 17,654 | | | | | $ | 19,401 | | | | | $ | 15,196 | | | | | $ | 14,330 | | | | | $ | 10,100 | | |
Money market accounts | | | | | 166,184 | | | | | | 131,331 | | | | | | 105,969 | | | | | | 156,768 | | | | | | 117,716 | | |
Savings accounts | | | | | 3,549 | | | | | | 4,611 | | | | | | 3,751 | | | | | | 3,067 | | | | | | 2,810 | | |
Certificates of deposit | | | | | 243,211 | | | | | | 248,199 | | | | | | 282,321 | | | | | | 163,000 | | | | | | 123,711 | | |
Noninterest-bearing deposits | | | | | 147,308 | | | | | | 119,419 | | | | | | 116,995 | | | | | | 106,800 | | | �� | | | 92,790 | | |
(Dollars in thousands, except per share information) | | | As of and for the Nine Months Ended September 30, | | As of and for the Years Ended December 31, | | | | As of and for the Nine Months Ended September 30, | | As of and for the Years Ended December 31, | | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 2019 | | 2018 | | 2018 | | 2017 | | 2016 | | | 2019 | | 2018 | | 2018 | | 2017 | | 2016 | | |||||||||||||||||||||||||||||||||||||||||
Selected MBI Performance Ratios | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Return on average assets (ROAA) (1) | | | | 1.11% | | | | | 1.10% | | | | | 1.13% | | | | | 0.81% | | | | | 0.86% | | | | | | 1.11% | | | | | 1.10% | | | | | 1.13% | | | | | 0.81% | | | | | 0.86% | | | ||||||||||
Return on average equity (ROAE) (1) | | | | 13.53% | | | | | 14.15% | | | | | 14.38% | | | | | 9.58% | | | | | 9.13% | | | | | | 13.53% | | | | | 14.15% | | | | | 14.38% | | | | | 9.58% | | | | | 9.13% | | | ||||||||||
Return on average tangible common equity (ROATCE)(1) (2) | | | | 13.53% | | | | | 14.15% | | | | | 14.38% | | | | | 9.58% | | | | | 9.13% | | | | | | 13.53% | | | | | 14.15% | | | | | 14.38% | | | | | 9.58% | | | | | 9.13% | | | ||||||||||
Net interest margin(3)(4) | | | | 3.48% | | | | | 3.60% | | | | | 3.60% | | | | | 3.64% | | | | | 3.59% | | | | | | 3.48% | | | | | 3.60% | | | | | 3.60% | | | | | 3.64% | | | | | 3.59% | | | ||||||||||
Noninterest income / average assets | | | | 0.23% | | | | | 0.19% | | | | | 0.21% | | | | | 0.27% | | | | | 0.29% | | | | | | 0.23% | | | | | 0.19% | | | | | 0.21% | | | | | 0.27% | | | | | 0.29% | | | ||||||||||
Noninterest expense / average assets | | | | 2.05% | | | | | 2.04% | | | | | 2.05% | | | | | 2.18% | | | | | 2.22% | | | | | | 2.05% | | | | | 2.04% | | | | | 2.05% | | | | | 2.18% | | | | | 2.22% | | | ||||||||||
Net operating income / average assets | | | | 1.11% | | | | | 1.10% | | | | | 1.13% | | | | | 0.81% | | | | | 0.86% | | | | | | 1.11% | | | | | 1.10% | | | | | 1.13% | | | | | 0.81% | | | | | 0.86% | | | ||||||||||
Efficiency ratio(5) | | | | 56.88% | | | | | 55.28% | | | | | 54.97% | | | | | 57.19% | | | | | 58.63% | | | | | | 56.88% | | | | | 55.28% | | | | | 54.97% | | | | | 57.19% | | | | | 58.63% | | | ||||||||||
Per Share Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Common stock issued and outstanding | | | | 3,419,188 | | | | | 3,411,946 | | | | | 3,411,946 | | | | | 3,394,690 | | | | | 3,376,759 | | | | | | 3,419,188 | | | | | 3,411,946 | | | | | 3,411,946 | | | | | 3,394,690 | | | | | 3,376,759 | | | ||||||||||
Basic weighted average shares outstanding | | | | 3,416,730 | | | | | 3,406,258 | | | | | 3,407,680 | | | | | 3,390,525 | | | | | 3,410,566 | | | | | | 3,416,730 | | | | | 3,406,258 | | | | | 3,407,680 | | | | | 3,390,525 | | | | | 3,410,566 | | | ||||||||||
Diluted weighted average shares outstanding | | | | 3,811,038 | | | | | 3,556,299 | | | | | 3,562,681 | | | | | 3,462,587 | | | | | 3,507,127 | | | | | | 3,811,038 | | | | | 3,556,299 | | | | | 3,562,681 | | | | | 3,462,587 | | | | | 3,507,127 | | | ||||||||||
Basic earnings per share | | | $ | 1.60 | | | | $ | 1.43 | | | | $ | 2.00 | | | | $ | 1.17 | | | | $ | 1.02 | | | | | $ | 1.60 | | | | $ | 1.43 | | | | $ | 2.00 | | | | $ | 1.17 | | | | $ | 1.02 | | | ||||||||||
Diluted earnings per share | | | | 1.43 | | | | | 1.37 | | | | | 1.91 | | | | | 1.14 | | | | | 0.99 | | | | | | 1.43 | | | | | 1.37 | | | | | 1.91 | | | | | 1.14 | | | | | 0.99 | | | ||||||||||
Book value per share | | | | 16.51 | | | | | 14.19 | | | | | 14.89 | | | | | 12.71 | | | | | 11.43 | | | | | | 16.51 | | | | | 14.19 | | | | | 14.89 | | | | | 12.71 | | | | | 11.43 | | | ||||||||||
Tangible book value per share(2) | | | | 16.51 | | | | | 14.19 | | | | | 14.89 | | | | | 12.71 | | | | | 11.43 | | | | | | 16.51 | | | | | 14.19 | | | | | 14.89 | | | | | 12.71 | | | | | 11.43 | | | ||||||||||
Asset Quality Ratios | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Nonperforming assets ($) | | | $ | 1,818 | | | | $ | 2,404 | | | | $ | 2,112 | | | | $ | 2,406 | | | | $ | — | | | | | $ | 1,818 | | | | $ | 2,404 | | | | $ | 2,112 | | | | $ | 2,406 | | | | $ | — | | | ||||||||||
Nonperforming assets / assets | | | | 0.27% | | | | | 0.37% | | | | | 0.32% | | | | | 0.45% | | | | | — | | | | | | 0.27% | | | | | 0.37% | | | | | 0.32% | | | | | 0.45% | | | | | — | | | ||||||||||
Nonperforming loans / loans | | | | 0.02% | | | | | 0.45% | | | | | 0.07% | | | | | 0.51% | | | | | — | | | | | | 0.02% | | | | | 0.45% | | | | | 0.07% | | | | | 0.51% | | | | | — | | | ||||||||||
Net charge-offs (recoveries) to average loans | | | | (0.01)% | | | | | 0.00% | | | | | 0.09% | | | | | 0.08% | | | | | 0.00% | | | | | | (0.01)% | | | | | 0.00% | | | | | 0.09% | | | | | 0.08% | | | | | 0.00% | | | ||||||||||
Allowance for loan losses / total loans | | | | 0.94% | | | | | 0.91% | | | | | 0.87% | | | | | 0.91% | | | | | 0.99% | | | | | | 0.94% | | | | | 0.91% | | | | | 0.87% | | | | | 0.91% | | | | | 0.99% | | | ||||||||||
Allowance for loan losses / nonperforming loans | | | | 4,812.73% | | | | | 204.41% | | | | | 1,203.71% | | | | | 174.52% | | | | | N/A | | | | | | 4,812.73% | | | | | 204.41% | | | | | 1,203.71% | | | | | 174.52% | | | | | N/A | | | ||||||||||
MBI Capital Ratios | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Tier 1 leverage ratio | | | | 8.4% | | | | | 7.9% | | | | | 8.1% | | | | | 8.2% | | | | | 9.4% | | | | | | 8.4% | | | | | 7.9% | | | | | 8.1% | | | | | 8.2% | | | | | 9.4% | | | ||||||||||
Common equity tier 1 capital ratio | | | | 9.7% | | | | | 8.9% | | | | | 8.9% | | | | | 9.2% | | | | | 10.6% | | | | | | 9.7% | | | | | 8.9% | | | | | 8.9% | | | | | 9.2% | | | | | 10.6% | | | ||||||||||
Tier 1 risk-based capital ratio | | | | 9.7% | | | | | 8.9% | | | | | 8.9% | | | | | 9.2% | | | | | 10.6% | | | | | | 9.7% | | | | | 8.9% | | | | | 8.9% | | | | | 9.2% | | | | | 10.6% | | | ||||||||||
Total risk-based capital ratio | | | | 12.3% | | | | | 11.6% | | | | | 11.5% | | | | | 12.2% | | | | | 14.2% | | | | | | 12.3% | | | | | 11.6% | | | | | 11.5% | | | | | 12.2% | | | | | 14.2% | | | ||||||||||
Tangible common equity / tangible assets | | | | 8.3% | | | | | 7.5% | | | | | 7.7% | | | | | 8.0% | | | | | 8.9% | | | | | | 8.3% | | | | | 7.5% | | | | | 7.7% | | | | | 8.0% | | | | | 8.9% | | |
(Dollars in thousands, except per share information) | | | As of and for the Nine Months Ended September 30, | | As of and for the Years Ended December 31, | | | | As of and for the Nine Months Ended September 30, | | As of and for the Years Ended December 31, | | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 2019 | | 2018 | | 2018 | | 2017 | | 2016 | | | 2019 | | 2018 | | 2018 | | 2017 | | 2016 | | |||||||||||||||||||||||||||||||||||||||||
Marquis Bank Capital Ratios | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Tier 1 leverage ratio | | | | 9.7% | | | | | 9.4% | | | | | 9.5% | | | | | 9.7% | | | | | 11.1% | | | | | | 9.7% | | | | | 9.4% | | | | | 9.5% | | | | | 9.7% | | | | | 11.1% | | | ||||||||||
Common equity tier 1 capital ratio | | | | 11.2% | | | | | 10.6% | | | | | 10.5% | | | | | 10.8% | | | | | 12.7% | | | | | | 11.2% | | | | | 10.6% | | | | | 10.5% | | | | | 10.8% | | | | | 12.7% | | | ||||||||||
Tier 1 risk-based capital ratio | | | | 11.2% | | | | | 10.6% | | | | | 10.5% | | | | | 10.8% | | | | | 12.7% | | | | | | 11.2% | | | | | 10.6% | | | | | 10.5% | | | | | 10.8% | | | | | 12.7% | | | ||||||||||
Total risk-based capital ratio | | | | 12.2% | | | | | 11.5% | | | | | 11.4% | | | | | 11.8% | | | | | 13.7% | | | | | | 12.2% | | | | | 11.5% | | | | | 11.4% | | | | | 11.8% | | | | | 13.7% | | | ||||||||||
Tangible common equity / tangible assets | | | | 9.6% | | | | | 8.9% | | | | | 9.0% | | | | | 9.4% | | | | | 10.8% | | | | | | 9.6% | | | | | 8.9% | | | | | 9.0% | | | | | 9.4% | | | | | 10.8% | | |
| | | As of September 30, | | | As of December 31, | | ||||||||||||||||||||||||
(Dollars in thousands, except per share data) | | | 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||
Tangible Common Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total shareholders’ equity | | | | $ | 77,972 | | | | | $ | 58,851 | | | | | $ | 79,681 | | | | | $ | 57,592 | | | | | $ | 36,906 | | |
Less: intangible assets | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Tangible common equity | | | | $ | 77,972 | | | | | $ | 58,851 | | | | | $ | 79,681 | | | | | $ | 57,592 | | | | | $ | 36,906 | | |
|
| | | As of September 30, | | | As of December 31, | | ||||||||||||||||||||||||
(Dollars in thousands, except per share data) | | | 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||
Tangible common equity / tangible assets | | | | | | | |||||||||||||||||||||||||
Total assets | | | | $ | 963,193 | | | | | $ | 705,480 | | | | | $ | 729,625 | | | | | $ | 547,021 | | | | | $ | 385,184 | | |
Less: intangible assets | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Tangible assets | | | | | 963,193 | | | | | | 705,480 | | | | | | 729,625 | | | | | | 547,021 | | | | | | 385,184 | | |
Tangible common equity / tangible assets | | | | | 8.0% | | | | | | 8.2% | | | | | | 8.5% | | | | | | 8.1% | | | | | | 8.5% | | |
| | | Nine Months Ended September 30, | | | Years Ended December 31, | | ||||||||||||||||||||||||
(Dollars in thousands, except per share data) | | | 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||
Return on Average Tangible Common Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | | | $ | 1,348 | | | | | $ | 1,320 | | | | | $ | 2,106 | | | | | $ | 1,814 | | | | | $ | 1,131 | | |
Add: intangible asset amortization, net of taxes | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net income excluding intangible amortization, as adjusted | | | | | 1,348 | | | | | | 1,320 | | | | | | 2,106 | | | | | | 1,814 | | | | | | 1,131 | | |
Average total equity | | | | | 79,790 | | | | | | 57,989 | | | | | | 59,835 | | | | | | 55,016 | | | | | | 35,880 | | |
Less: average intangible assets | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Divide by average tangible common equity | | | | | 79,790 | | | | | | 57,989 | | | | | | 59,835 | | | | | | 55,016 | | | | | | 35,880 | | |
Return on average tangible common equity(1) | | | | | 2.25% | | | | | | 3.04% | | | | | | 3.52% | | | | | | 3.30% | | | | | | 3.15% | | |
|
| | | As of September 30, | | | As of December 31, | | ||||||||||||||||||||||||
(Dollars in thousands, except per share data) | | | 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||
Tangible Book Value Per Share | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total shareholders’ equity | | | | $ | 77,972 | | | | | $ | 58,851 | | | | | $ | 79,681 | | | | | $ | 57,592 | | | | | $ | 36,906 | | |
Less: intangible assets | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Tangible common equity | | | | | 77,972 | | | | | | 58,851 | | | | | | 79,681 | | | | | | 57,592 | | | | | | 36,906 | | |
Divide by shares of common stock outstanding | | | | | 5,740,486 | | | | | | 4,818,267 | | | | | | 5,923,884 | | | | | | 4,818,267 | | | | | | 3,513,478 | | |
Tangible book value per share | | | | $ | 13.58 | | | | | $ | 12.21 | | | | | $ | 13.45 | | | | | $ | 11.95 | | | | | $ | 10.50 | | |
| | | As of September 30, | | | As of December 31, | | ||||||||||||||||||||||||
(Dollars in thousands, except per share data) | | | 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||
Tangible Book Value Per Share | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total shareholders’ equity | | | | $ | 77,972 | | | | | $ | 58,851 | | | | | $ | 79,681 | | | | | $ | 57,592 | | | | | $ | 36,906 | | |
Less: intangible assets | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Tangible common equity | | | | | 77,972 | | | | | | 58,851 | | | | | | 79,681 | | | | | | 57,592 | | | | | | 36,906 | | |
Divide by shares of common stock outstanding | | | | | 5,740,486 | | | | | | 4,818,267 | | | | | | 5,923,884 | | | | | | 4,818,267 | | | | | | 3,513,478 | | |
Tangible book value per share | | | | $ | 13.58 | | | | | $ | 12.21 | | | | | $ | 13.45 | | | | | $ | 11.95 | | | | | $ | 10.50 | | |
| | | As of September 30, | | | As of December 31, | | ||||||||||||||||||||||||
(Dollars in thousands, except per share data) | | | 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||
Tangible Common Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total shareholders’ equity | | | | $ | 56,444 | | | | | $ | 48,401 | | | | | $ | 50,805 | | | | | $ | 43,147 | | | | | $ | 38,601 | | |
Less: intangible assets | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Tangible common equity | | | | $ | 56,444 | | | | | $ | 48,401 | | | | | $ | 50,805 | | | | | $ | 43,147 | | | | | $ | 38,601 | | |
|
| | | As of September 30, | | | As of December 31, | | ||||||||||||||||||||||||
(Dollars in thousands, except per share data) | | | 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||
Tangible common equity / tangible assets | | | | | | | |||||||||||||||||||||||||
Total assets | | | | $ | 676,819 | | | | | $ | 643,570 | | | | | $ | 662,324 | | | | | $ | 539,184 | | | | | $ | 432,813 | | |
Less: intangible assets | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Tangible assets | | | | | 676,819 | | | | | | 643,570 | | | | | | 662,324 | | | | | | 539,184 | | | | | | 432,813 | | |
Tangible common equity / tangible assets | | | | | 8.3% | | | | | | 7.5% | | | | | | 7.7% | | | | | | 8.0% | | | | | | 8.9% | | |
| | | Nine Months Ended September 30, | | | Years Ended December 31, | | ||||||||||||||||||||||||
(Dollars in thousands, except per share data) | | | 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||
Return on Average Tangible Common Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | | | $ | 5,461 | | | | | $ | 4,874 | | | | | $ | 6,808 | | | | | $ | 3,963 | | | | | $ | 3,479 | | |
Add: intangible asset amortization, net of taxes | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net income excluding intangible amortization, as adjusted | | | | | 5,461 | | | | | | 4,874 | | | | | | 6,808 | | | | | | 3,963 | | | | | | 3,479 | | |
Average total equity | | | | | 53,982 | | | | | | 46,071 | | | | | | 47,018 | | | | | | 41,321 | | | | | | 38,038 | | |
Less: average intangible assets | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Divide by average tangible common equity | | | | | 53,982 | | | | | | 46,071 | | | | | | 47,018 | | | | | | 41,321 | | | | | | 38,038 | | |
Return on average tangible common equity(1) | | | | | 13.53% | | | | | | 14.15% | | | | | | 14.48% | | | | | | 9.59% | | | | | | 9.15% | | |
|
| | | As of September 30, | | | As of December 31, | | ||||||||||||||||||||||||
(Dollars in thousands, except per share data) | | | 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||
Tangible Book Value Per Share | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total shareholders’ equity | | | | $ | 56,444 | | | | | $ | 48,401 | | | | | $ | 50,805 | | | | | $ | 43,147 | | | | | $ | 38,601 | | |
Less: intangible assets | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Tangible common equity | | | | | 56,444 | | | | | | 48,401 | | | | | | 50,805 | | | | | | 43,147 | | | | | | 38,601 | | |
Divide by shares of common stock outstanding | | | | | 3,419,188 | | | | | | 3,411,946 | | | | | | 3,411,946 | | | | | | 3,394,690 | | | | | | 3,376,759 | | |
Tangible book value per share | | | | $ | 16.51 | | | | | $ | 14.19 | | | | | $ | 14.89 | | | | | $ | 12.71 | | | | | $ | 11.43 | | |
| | | | | | | | | | | | Merger Adjustments | | | | | | | | | | | | | Merger Adjustments | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | Professional Holding Corp. | | Marquis Bancorp, Inc. | | Debit | | | | | | | Credit | | | | | | | Pro Forma Combined | | | Professional Holding Corp. | | Marquis Bancorp, Inc. | | Debit | | | | | | | Credit | | | | | | | Pro Forma Combined | | ||||||||||||||||||||||||||||||||||||||||||||
Assets | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | | | $ | 130,495 | | | | $ | 80,790 | | | | | | | | | | | | | | $ | 5,604 | | | | | a | | | | $ | 205,681 | | | | | $ | 130,495 | | | | $ | 80,790 | | | | | | | | | | | | | | $ | 5,604 | | | | | a | | | | $ | 205,681 | | | ||||||||||||||
Securities available for sale, at fair value | | | | 28,236 | | | | | 26,171 | | | | | | | | | | | | | | | | | | | | | | | | | 54,407 | | | | | | 28,236 | | | | | 26,171 | | | | | | | | | | | | | | | | | | | | | | | | | 54,407 | | | ||||||||||||||
Securities held to maturity | | | | 224 | | | | | 1,498 | | | | | | | | | | | | | | | 5 | | | | | b | | | | | 1,717 | | | | | | 224 | | | | | 1,498 | | | | | | | | | | | | | | | 5 | | | | | b | | | | | 1,717 | | | ||||||||||||||
Equity Securities | | | | 975 | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | 975 | | | | | | 975 | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | 975 | | | ||||||||||||||
FRB and FHLB stock, at cost | | | | 4,783 | | | | | 1,871 | | | | | | | | | | | | | | | | | | | | | | | | | 6,654 | | | | | | 4,783 | | | | | 1,871 | | | | | | | | | | | | | | | | | | | | | | | | | 6,654 | | | ||||||||||||||
Loans held for sale | | | | 1,333 | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | 1,333 | | | | | | 1,333 | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | 1,333 | | | ||||||||||||||
Loans, net of unearned income | | | | 769,779 | | | | | 565,269 | | | | | | | | | | | | | | | 13,032 | | | | | c | | | | | 1,322,016 | | | | | | 769,779 | | | | | 565,269 | | | | | | | | | | | | | | | 13,032 | | | | | c | | | | | 1,322,016 | | | ||||||||||||||
Less allowance for loan losses | | | | (6,449) | | | | | (5,294) | | | | | 5,294 | | | | | c | | | | | | | | | | | | | | | (6,449) | | | | | | (6,449) | | | | | (5,294) | | | | | 5,294 | | | | | c | | | | | | | | | | | | | | | (6,449) | | | ||||||||||||||
Net loans | | | | 764,663 | | | | | 559,975 | | | | | 5,294 | | | | | | | | | | 13,032 | | | | | | | | | | 1,316,900 | | | | | | 764,663 | | | | | 559,975 | | | | | 5,294 | | | | | | | | | | 13,032 | | | | | | | | | | 1,316,900 | | | ||||||||||||||
Premises and equipment (net) | | | | 3,999 | | | | | 1,000 | | | | | | | | | | | | | | | | | | | | | | | | | 4,999 | | | | | | 3,999 | | | | | 1,000 | | | | | | | | | | | | | | | | | | | | | | | | | 4,999 | | | ||||||||||||||
Bank owned life insurance | | | | 16,728 | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | 16,728 | | | | | | 16,728 | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | 16,728 | | | ||||||||||||||
Other real estate owned, net of valuation allowance | | | | — | | | | | 1,708 | | | | | | | | | | | | | | | 700 | | | | | d | | | | | 1,008 | | | | | | — | | | | | 1,708 | | | | | | | | | | | | | | | 700 | | | | | d | | | | | 1,008 | | | ||||||||||||||
Core deposit intangible | | | | — | | | | | — | | | | | 5,654 | | | | | e | | | | | | | | | | | | | | | 5,654 | | | | | | — | | | | | — | | | | | 5,654 | | | | | e | | | | | | | | | | | | | | | 5,654 | | | ||||||||||||||
Goodwill | | | | — | | | | | — | | | | | 33,457 | | | | | f | | | | | | | | | | | | | | | 33,457 | | | | | | — | | | | | — | | | | | 36,259 | | | | | f | | | | | | | | | | | | | | | 36,259 | | | ||||||||||||||
Deferred tax asset, net | | | | 1,627 | | | | | 1,594 | | | | | 588 | | | | | g | | | | | | | | | | | | | | | 3,809 | | | | | | 1,627 | | | | | 1,594 | | | | | 588 | | | | | g | | | | | | | | | | | | | | | 3,809 | | | ||||||||||||||
Other assets | | | | 11,463 | | | | | 2,212 | | | | | 2,518 | | | | | h | | | | | | | | | | | | | | | 16,193 | | | | | | 11,463 | | | | | 2,212 | | | | | 2,518 | | | | | h | | | | | | | | | | | | | | | 16,193 | | | ||||||||||||||
Total assets | | | $ | 963,193 | | | | $ | 676,819 | | | | | 47,511 | | | | | | | | | | 19,341 | | | | | | | | | $ | 1,668,182 | | | | | $ | 963,193 | | | | $ | 676,819 | | | | | 50,313 | | | | | | | | | | 19,341 | | | | | | | | | $ | 1,670,984 | | | ||||||||||||||
Liabilities | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-interest-bearing demand deposits | | | | 187,927 | | | | | 147,308 | | | | | | | | | | | | | | | | | | | | | | | | | 335,235 | | | | | | 187,927 | | | | | 147,308 | | | | | | | | | | | | | | | | | | | | | | | | | 335,235 | | | ||||||||||||||
Interest bearing deposits | | | | 635,138 | | | | | 430,598 | | | | | | | | | | | | | | | | | | | | | | | | | 1,065,736 | | | | | | 635,138 | | | | | 430,598 | | | | | | | | | | | | | | | | | | | | | | | | | 1,065,736 | | | ||||||||||||||
Total deposits | | | | 823,065 | | | | | 577,906 | | | | | | | | | | | | | | | | | | | | | | | | | 1,400,971 | | | | | | 823,065 | | | | | 577,906 | | | | | | | | | | | | | | | | | | | | | | | | | 1,400,971 | | | ||||||||||||||
Other borrowed funds | | | | 50,000 | | | | | 30,000 | | | | | | | | | | | | | | | | | | | | | | | | | 80,000 | | | | | | 50,000 | | | | | 30,000 | | | | | | | | | | | | | | | | | | | | | | | | | 80,000 | | | ||||||||||||||
Subordinated debt, net of issuance costs | | | | — | | | | | 9,710 | | | | | | | | | | | | | | | | | | | | | | | | | 9,710 | | | | | | — | | | | | 9,710 | | | | | | | | | | | | | | | | | | | | | | | | | 9,710 | | | ||||||||||||||
Other liabilities | | | | 12,156 | | | | | 2,759 | | | | | | | | | | | | | | | 2,518 | | | | | h | | | | | 17,433 | | | | | | 12,156 | | | | | 2,759 | | | | | | | | | | | | | | | 2,518 | | | | | h | | | | | 17,433 | | | ||||||||||||||
Total liabilities | | | | 885,221 | | | | | 620,375 | | | | | | | | | | | | | | | 2,518 | | | | | | | | | | 1,508,114 | | | | | | 885,221 | | | | | 620,375 | | | | | | | | | | | | | | | 2,518 | | | | | | | | | | 1,508,114 | | | ||||||||||||||
Shareholders’ equity | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock and surplus | | | | 72,572 | | | | | 36,096 | | | | | 36,096 | | | | | i | | | | | 82,096 | | | | | i | | | | | 154,668 | | | | | | 72,572 | | | | | 36,096 | | | | | 36,096 | | | | | i | | | | | 84,898 | | | | | i | | | | | 157,470 | | | ||||||||||||||
Retained earnings | | | | 5,463 | | | | | 20,301 | | | | | 20,301 | | | | | i | | | | | | | | | | | | | | | 5,463 | | | | | | 5,463 | | | | | 20,301 | | | | | 20,301 | | | | | i | | | | | | | | | | | | | | | 5,463 | | | ||||||||||||||
Accumulated other comprehensive income | | | | (63) | | | | | 47 | | | | | 47 | | | | | b | | | | | | | | | | | | | | | (63) | | | | | | (63) | | | | | 47 | | | | | 47 | | | | | b | | | | | | | | | | | | | | | (63) | | | ||||||||||||||
Total shareholders’ equity | | | | 77,972 | | | | | 56,444 | | | | | 56,444 | | | | | | | | | | 82,096 | | | | | | | | | | 160,068 | | | | | | 77,972 | | | | | 56,444 | | | | | 56,444 | | | | | | | | | | 84,898 | | | | | | | | | | 162,870 | | | ||||||||||||||
Total liabilities and shareholders’ equity | | | $ | 963,193 | | | | $ | 676,819 | | | | | 56,444 | | | | | | | | | | 84,614 | | | | | | | | | $ | 1,668,182 | | | | | $ | 963,193 | | | | $ | 676,819 | | | | | 56,444 | | | | | | | | | | 87,416 | | | | | | | | | $ | 1,670,984 | | | |
(Dollars in thousands) | | | Professional Holding Corp. | | | Marquis Bancorp, Inc. | | | Pro Forma Adjustments | | | | | | | | | Pro Forma Combined | | ||||||||||||
Interest and dividend income | | | | | | | |||||||||||||||||||||||||
Interest and fees on loans | | | | $ | 25,633 | | | | | $ | 26,797 | | | | | $ | 3,258 | | | | | | j | | | | | $ | 55,688 | | |
Interest income on securities and restricted stock | | | | | 829 | | | | | | 664 | | | | | | | | | | | | | | | | | | 1,493 | | |
Other interest income | | | | | 1,288 | | | | | | 779 | | | | | | | | | | | | | | | | | | 2,067 | | |
Total interest and dividend income | | | | | 27,750 | | | | | | 28,240 | | | | | | 3,258 | | | | | | | | | | | | 59,248 | | |
Interest expense | | | | | | | |||||||||||||||||||||||||
Interest expense on deposits | | | | | 5,104 | | | | | | 5,473 | | | | | | | | | | | | | | | | | | 10,577 | | |
Other interest expense | | | | | 733 | | | | | | 1,600 | | | | | | | | | | | | | | | | | | 2,333 | | |
Total interest expense | | | | | 5,837 | | | | | | 7,073 | | | | | | — | | | | | | | | | | | | 12,910 | | |
Net interest income | | | | | 21,913 | | | | | | 21,167 | | | | | | 3,258 | | | | | | | | | | | | 46,338 | | |
Provision for loan losses | | | | | 1,150 | | | | | | 1,149 | | | | | | | | | | | | | | | | | | 2,299 | | |
Net interest income after provision for loan losses | | | | | 20,763 | | | | | | 20,018 | | | | | | 3,258 | | | | | | | | | | | | 44,039 | | |
Noninterest income | | | | | | | |||||||||||||||||||||||||
Service charges on deposit accounts | | | | | 283 | | | | | | 750 | | | | | | | | | | | | | | | | | | 1,033 | | |
Income from Company owned life insurance | | | | | 288 | | | | | | — | | | | | | | | | | | | | | | | | | 288 | | |
Gain on sale of loans, net of commissions | | | | | — | | | | | | 250 | | | | | | | | | | | | | | | | | | 250 | | |
Other operating income | | | | | 1,303 | | | | | | 257 | | | | | | | | | | | | | | | | | | 1,560 | | |
Total non-interest income | | | | | 1,874 | | | | | | 1,257 | | | | | | — | | | | | | | | | | | | 3,131 | | |
Noninterest expense | | | | | | | |||||||||||||||||||||||||
Salaries and employee benefits | | | | | 13,538 | | | | | | 7,320 | | | | | | | | | | | | | | | | | | 20,858 | | |
Net occupancy and depreciation expense | | | | | 1,872 | | | | | | 1,335 | | | | | | | | | | | | | | | | | | 3,207 | | |
Data processing | | | | | 624 | | | | | | 657 | | | | | | | | | | | | | | | | | | 1,281 | | |
Marketing | | | | | 430 | | | | | | 193 | | | | | | | | | | | | | | | | | | 623 | | |
Professional fees | | | | | 693 | | | | | | 415 | | | | | | | | | | | | | | | | | | 1,108 | | |
Regulatory assessments | | | | | 535 | | | | | | 442 | | | | | | | | | | | | | | | | | | 977 | | |
Amortization on intangibles | | | | | — | | | | | | — | | | | | | 565 | | | | | | k | | | | | | 565 | | |
Other noninterest expense | | | | | 2,170 | | | | | | 1,964 | | | | | | | | | | | | | | | | | | 4,134 | | |
Total non-interest expense | | | | | 19,862 | | | | | | 12,326 | | | | | | 565 | | | | | | | | | | | | 32,753 | | |
Net income before taxes | | | | | 2,775 | | | | | | 8,949 | | | | | | 2,693 | | | | | | | | | | | | 14,417 | | |
Income tax expenses (benefit) | | | | | 669 | | | | | | 2,141 | | | | | | 681 | | | | | | l | | | | | | 3,491 | | |
Net income | | | | $ | 2,106 | | | | | $ | 6,808 | | | | | $ | 2,012 | | | | | | | | | | | $ | 10,926 | | |
Basic earnings per common share | | | | $ | 0.43 | | | | | $ | 2.00 | | | | | | | | | | | | | | | | | $ | 1.21 | | |
Diluted earnings per common share | | | | $ | 0.41 | | | | | $ | 1.91 | | | | | | | | | | | | | | | | | $ | 1.16 | | |
Weighted average common shares outstanding | | | | | 4,910,401 | | | | | | 3,407,680 | | | | | | 697,893 | | | | | | m | | | | | | 9,015,974 | | |
Weighted average diluted common shares outstanding | | | | | 5,129,314 | | | | | | 3,562,681 | | | | | | 729,637 | | | | | | m | | | | | | 9,421,632 | | |
(Dollars in thousands) | | | Professional Holding Corp. | | | Marquis Bancorp, Inc. | | | Pro Forma Adjustments | | | | | | | | | Pro Forma Combined | | ||||||||||||
Interest and dividend income | | | | | | | |||||||||||||||||||||||||
Interest and fees on loans | | | | $ | 26,289 | | | | | $ | 22,849 | | | | | $ | 2,444 | | | | | | j | | | | | $ | 51,582 | | |
Interest income on securities and restricted stock | | | | | 504 | | | | | | 609 | | | | | | | | | | | | | | | | | | 1,113 | | |
Other interest income | | | | | 1,807 | | | | | | 859 | | | | | | | | | | | | | | | | | | 2,666 | | |
Total interest and dividend income | | | | | 28,600 | | | | | | 24,317 | | | | | | 2,444 | | | | | | | | | | | | 55,361 | | |
Interest expense | | | | | | | |||||||||||||||||||||||||
Interest expense on deposits | | | | | 7,200 | | | | | | 6,387 | | | | | | | | | | | | | | | | | | 13,587 | | |
Other interest expense | | | | | 795 | | | | | | 1,277 | | | | | | | | | | | | | | | | | | 2,072 | | |
Total interest expense | | | | | 7,995 | | | | | | 7,664 | | | | | | | | | | | | | | | | | | 15,659 | | |
Net interest income | | | | | 20,605 | | | | | | 16,653 | | | | | | 2,444 | | | | | | | | | | | | 39,702 | | |
Provision for loan losses | | | | | 762 | | | | | | 367 | | | | | | | | | | | | | | | | | | 1,129 | | |
Net interest income after provision for loan losses | | | | | 19,843 | | | | | | 16,286 | | | | | | 2,444 | | | | | | | | | | | | 38,573 | | |
Non-interest income | | | | | | | |||||||||||||||||||||||||
Service charges on deposit accounts | | | | | 542 | | | | | | 593 | | | | | | — | | | | | | | | | | | | 1,135 | | |
Income from Company owned life insurance | | | | | 278 | | | | | | — | | | | | | — | | | | | | | | | | | | 278 | | |
Gain on sale of mortgage loans, net of commissions | | | | | — | | | | | | 312 | | | | | | — | | | | | | | | | | | | 312 | | |
Other operating income | | | | | 1,307 | | | | | | 235 | | | | | | — | | | | | | | | | | | | 1,542 | | |
Total non-interest income | | | | | 2,127 | | | | | | 1,140 | | | | | | — | | | | | | | | | | | | 3,267 | | |
Non-interest expense | | | | | | | |||||||||||||||||||||||||
Salaries and employee benefits | | | | | 13,534 | | | | | | 6,155 | | | | | | | | | | | | | | | | | | 19,689 | | |
Net occupancy and depreciation expense | | | | | 1,824 | | | | | | 1,111 | | | | | | | | | | | | | | | | | | 2,935 | | |
Data processing | | | | | 489 | | | | | | 456 | | | | | | | | | | | | | | | | | | 945 | | |
Marketing | | | | | 400 | | | | | | 96 | | | | | | | | | | | | | | | | | | 496 | | |
Professional fees | | | | | 1,106 | | | | | | 516 | | | | | | | | | | | | | | | | | | 1,622 | | |
Regulatory assessments | | | | | 353 | | | | | | 199 | | | | | | | | | | | | | | | | | | 552 | | |
Amortization expense | | | | | — | | | | | | — | | | | | | 424 | | | | | | k | | | | | | 424 | | |
Other non-interest expense | | | | | 2,382 | | | | | | 1,588 | | | | | | | | | | | | | | | | | | 3,970 | | |
Total non-interest expense | | | | | 20,088 | | | | | | 10,121 | | | | | | 424 | | | | | | l | | | | | | 30,633 | | |
Net income before taxes | | | | | 1,882 | | | | | | 7,305 | | | | | | 2,020 | | | | | | | | | | | | 11,207 | | |
Income tax expenses (benefit) | | | | | 534 | | | | | | 1,844 | | | | | | 511 | | | | | | l | | | | | | 2,889 | | |
Net income | | | | $ | 1,348 | | | | | $ | 5,461 | | | | | $ | 1,509 | | | | | | | | | | | $ | 8,318 | | |
Basic earnings per common share | | | | $ | 0.23 | | | | | $ | 1.60 | | | | | | | | | | | | | | | | | $ | 0.83 | | |
Diluted earnings per common share | | | | $ | 0.22 | | | | | $ | 1.43 | | | | | | | | | | | | | | | | | $ | 0.78 | | |
Weighted average common shares outstanding | | | | | 5,882,519 | | | | | | 3,416,730 | | | | | | 699,746 | | | | | | m | | | | | | 9,998,995 | | |
Weighted average diluted common shares outstanding | | | | | 6,085,397 | | | | | | 3,811,038 | | | | | | 780,501 | | | | | | m | | | | | | 10,676,936 | | |
| Purchase Price | | | Purchase Price | | | ||||||||||||||||||||||
| Fair value of consideration | | | | | | | | $ | 82,096 | | | Fair value of consideration | | | | | | | | $ | 84,898 | | | ||||
| Total pro forma purchase price | | | | | | | | | 82,096 | | | Total pro forma purchase price | | | | | | | | | 84,898 | | | ||||
| Fair value of assets acquired | | | Fair value of assets acquired | | | ||||||||||||||||||||||
| Cash and cash equivalents | | | $ | 75,186 | | | | Cash and cash equivalents | | | $ | 75,186 | | | | ||||||||||||
| Securities | | | | 27,664 | | | | Securities | | | | 27,664 | | | | ||||||||||||
| Net loans | | | | 552,237 | | | | Net loans | | | | 552,237 | | | | ||||||||||||
| Premises and equipment (net) | | | | 1,000 | | | | Premises and equipment (net) | | | | 1,000 | | | | ||||||||||||
| Bank owned life insurance | | | | — | | | | Bank owned life insurance | | | | — | | | | ||||||||||||
| Other real estate owned, net of valuation allowance | | | | 1,008 | | | | Other real estate owned, net of valuation allowance | | | | 1,008 | | | | ||||||||||||
| Core deposit intangibles, net | | | | 5,654 | | | | Core deposit intangibles, net | | | | 5,654 | | | | ||||||||||||
| Deferred tax asset | | | | 588 | | | | Deferred tax asset | | | | 588 | | | | ||||||||||||
| Other assets | | | | 5,677 | | | | Other assets | | | | 5,677 | | | | ||||||||||||
| Total assets | | | | 669,014 | | | | Total assets | | | | 669,014 | | | |
| Fair value of liabilities assumed | | | | ||||||||||
| Deposits | | | | | 577,906 | | | | |||||
| Long-term borrowings | | | | | 39,710 | | | | |||||
| Other liabilities | | | | | 2,759 | | | | |||||
| Total liabilities | | | | | 620,375 | | | | |||||
| Net assets acquired | | | | | | | | | | | 48,639 | | |
| Preliminary pro forma goodwill | | | | | | | | | | | | |
| | Purchase Price | | Estimated Goodwill | | Equity | | | Purchase Price | | Estimated Goodwill | | Equity | | ||||||||||||||||||||||||
Up 20% | | | $ | 98,515 | | | | $ | 49,876 | | | | $ | 176,487 | | | | | $ | 101,878 | | | | $ | 53,239 | | | | $ | 179,850 | | | ||||||
Up 10% | | | | 90,306 | | | | | 41,667 | | | | | 168,278 | | | | | | 93,388 | | | | | 44,749 | | | | | 171,360 | | | ||||||
As presented in pro forma | | | | 82,096 | | | | | 33,457 | | | | | 160,068 | | | | | | 84,898 | | | | | 36,259 | | | | | 162,870 | | | ||||||
Down 10% | | | | 73,886 | | | | | 25,248 | | | | | 151,858 | | | | | | 76,408 | | | | | 27,769 | | | | | 154,380 | | | ||||||
Down 20% | | | | 65,677 | | | | | 17,038 | | | | | 143,649 | | | | | | 67,918 | | | | | 19,280 | | | | | 145,896 | | |
| | As of and for the nine months ended September 30, 2019 | | As of and for the year ended December 31, 2018 | | | As of and for the nine months ended September 30, 2019 | | As of and for the year ended December 31, 2018 | | ||||||||||||||||
Professional Holding Corp. Historical | | | | | ||||||||||||||||||||||
Net income per common share, basic | | | $ | 0.23 | | | | $ | 0.43 | | | | | $ | 0.23 | | | | $ | 0.43 | | | ||||
Net income per common share, diluted | | | | 0.22 | | | | | 0.41 | | | | | | 0.22 | | | | | 0.41 | | | ||||
Book value per common share, basic | | | | 13.58 | | | | | 13.45 | | | | | | 13.58 | | | | | 13.45 | | | ||||
Tangible book value per share, basic(1) | | | | 13.58 | | | | | 13.45 | | | | | | 13.58 | | | | | 13.45 | | | ||||
Cash dividends declared per share | | | | — | | | | | — | | | | | | — | | | | | — | | | ||||
Marquis Bancorp, Inc. Historical | | | | | ||||||||||||||||||||||
Net income per common share, basic | | | | 1.60 | | | | | 2.00 | | | | | | 1.60 | | | | | 2.00 | | | ||||
Net income per common share, diluted | | | | 1.43 | | | | | 1.91 | | | | | | 1.43 | | | | | 1.91 | | | ||||
Book value per common share, basic | | | | 16.51 | | | | | 14.89 | | | | | | 16.51 | | | | | 14.89 | | | ||||
Tangible book value per share, basic(1) | | | | 16.51 | | | | | 14.89 | | | | | | 16.51 | | | | | 14.89 | | | ||||
Cash dividends declared per share | | | | 0.22 | | | | | — | | | | | | 0.22 | | | | | — | | | ||||
Pro Forma Combined | | | | | ||||||||||||||||||||||
Net income per common share, basic | | | | 0.83 | | | | | 1.21 | | | | | | 0.83 | | | | | 1.21 | | | ||||
Net income per common share, diluted | | | | 0.78 | | | | | 1.16 | | | | | | 0.78 | | | | | 1.16 | | | ||||
Book value per common share, basic | | | | 16.23 | | | | | 15.56 | | | | | | 16.52 | | | | | 15.84 | | | ||||
Tangible book value per share, basic | | | | 12.27 | | | | | 12.22 | | | | | | 12.27 | | | | | 12.22 | | | ||||
Cash dividends declared per share | | | | — | | | | | — | | | | | | — | | | | | — | | |
| | As of and for the nine months ended September 30, 2019 | | As of and for the year ended December 31, 2018 | | | As of and for the nine months ended September 30, 2019 | | As of and for the year ended December 31, 2018 | | ||||||||||||||||
Pro Forma Marquis Bancorp, Inc. Equivalent | | | | | ||||||||||||||||||||||
Net income per common share, basic | | | | 1.00 | | | | | 1.46 | | | | | | 1.00 | | | | | 1.46 | | | ||||
Net income per common share, diluted | | | | 0.94 | | | | | 1.40 | | | | | | 0.94 | | | | | 1.40 | | | ||||
Book value per common share, basic | | | | 19.56 | | | | | 18.75 | | | | | | 19.90 | | | | | 19.08 | | | ||||
Tangible book value per share, basic | | | | 14.78 | | | | | 14.73 | | | | | | 14.78 | | | | | 14.73 | | | ||||
Cash dividends declared per share | | | | — | | | | | — | | | | | | — | | | | | — | | |
| | | Actual | | |||||||||
| | | September 30, 2019 | | | December 31, 2018 | | ||||||
Company End of Period Shares Outstanding | | | | | 5,740,486 | | | | | | 5,923,884 | | |
MBI End of Period Shares Outstanding | | | | | 3,419,188 | | | | | | 3,411,946 | | |
Company End of Period Diluted Shares Outstanding | | | | | 5,921,719 | | | | | | 6,118,667 | | |
MBI End of Period Diluted Shares Outstanding | | | | | 4,105,517 | | | | | | 3,914,385 | | |
| | | Pro Forma | | |||||||||
Company End of Period Shares Outstanding | | | | | 9,859,924 | | | | | | 10,034,597 | | |
Company End of Period Diluted Shares Outstanding | | | | | 10,868,046 | | | | | | 10,834,718 | | |
(Dollars in thousands) | | Actual | | As Adjusted | | Pro Forma As Adjusted | | | Actual | | As Adjusted | | Pro Forma As Adjusted | | ||||||||||||||||||||||||
Long-Term Debt | | | | | ||||||||||||||||||||||||||||||||||
Subordinated Debt | | | $ | — | | | | $ | | | | $ | | | | | $ | — | | | | $ | — | | | | $ | 9,710 | | | ||||||||
Shareholders’ Equity | | | | | ||||||||||||||||||||||||||||||||||
Preferred Stock, $0.01 par value per shares, 10,000,000 shares authorized, no shares issued or outstanding | | | $ | — | | | | $ | | | | | $ | | | | | | $ | — | | | | $ | — | | | | $ | — | | | ||||||
Common Stock, $0.01 par value per share, 60,000,000 shares authorized (50,000,000 Class A and 10,000,000 Class B), 5,740,486 shares issued and outstanding (4,988,302 Class A and 752,184 Class B); [ ] shares issued and outstanding, as adjusted ([ ] Class A and [ ] Class B); and [ ] shares issued and outstanding, pro forma as adjusted ([ ] Class A and [ ] Class B) | | | | 60 | | | | | | | | | | | | | ||||||||||||||||||||||
Class A Common Stock, par value $0.01 per share; authorized 50,000,000 shares; 4,988,302 outstanding; 8,088,302 outstanding, as adjusted; 12,207,740 outstanding, pro forma as adjusted | | | | 52 | | | | | 83 | | | | | 124 | | | ||||||||||||||||||||||
Class B Common Stock, par value $0.01 per share; authorized 10,000,000 shares; 752,184 outstanding, outstanding, as adjusted and outstanding, pro forma as adjusted | | | | 8 | | | | | 8 | | | | | 8 | | | ||||||||||||||||||||||
Treasury stock, at cost | | | | (4,155) | | | | | | | | | | | | | | | | (4,155) | | | | | (4,155) | | | | | (4,155) | | | ||||||
Additional paid-in capital | | | | 76,667 | | | | | | | | | | | | | | | | 76,667 | | | | | 132,628 | | | | | 217,484 | | | ||||||
Retained earnings | | | | 5,463 | | | | | | | | | | | | | | | | 5,463 | | | | | 5,463 | | | | | 5,463 | | | ||||||
Accumulated Other Comprehensive Loss | | | | (63) | | | | | | | | | | | | | | | | (63) | | | | | (63) | | | | | (63) | | | ||||||
Total shareholders’ equity | | | | 77,972 | | | | | | | | | | | | | | | | 77,972 | | | | | 133,964 | | | | | 218,862 | | | ||||||
Total capitalization | | | | | | 77,972 | | | | | 133,964 | | | | | 228,572 | | | ||||||||||||||||||||
Company Capital Ratios | | | | | ||||||||||||||||||||||||||||||||||
Tier 1 leverage ratio | | | | 8.44% | | | | | % | | | | | % | | | | | | 8.44% | | | | | 14.49% | | | | | 11.09% | | | ||||||
Common equity tier 1 capital ratio | | | | 11.47% | | | | | % | | | | | % | | | | | | 11.47% | | | | | 19.70% | | | | | 14.01% | | | ||||||
Tier 1 risk-based capital ratio | | | | 11.47% | | | | | % | | | | | % | | | | | | 11.47% | | | | | 19.70% | | | | | 14.01% | | | ||||||
Total risk-based capital ratio | | | | 12.51% | | | | | % | | | | | % | | | | | | 12.51% | | | | | 20.74% | | | | | 14.57% | | | ||||||
Tangible common equity(1) / tangible assets | | | | 8.10% | | | | | % | | | | | % | | | | | | 8.10% | | | | | 13.15% | | | | | 10.50% | | | ||||||
Book value per share | | | $ | 13.58 | | | | $ | | | | | $ | | | | | | $ | 13.58 | | | | $ | 15.15 | | | | $ | 16.89 | | | ||||||
Tangible book value per share(1) | | | $ | 13.58 | | | | $ | | | | | $ | | | | | | $ | 13.58 | | | | $ | 15.15 | | | | $ | 13.65 | | |
| Assumed initial public offering price per share | | | | | | | | | | $ | 20.00 | | |
| Net tangible book value per share as of September 30, 2019 | | | | $ | 13.58 | | | | | | | | |
| Increase in net tangible book value per share attributable to new investors | | | | $ | 1.57 | | | | | | | | |
| Net tangible book value per share after giving effect to this offering | | | | | | | | | | $ | 15.15 | | |
| Dilution per share to new investors in this offering | | | | | | | | | | $ | 4.85 | | |
| | | Per Share | | | Per Share, Pro Forma | | ||||||
Assumed initial public offering price per share | | | | $ | [ ] | | | | | $ | | | |
Net tangible book value per share as of September 30, 2019 | | | | $ | 13.58 | | | | |||||
Increase in net tangible book value per share attributable to new investors | | | | $ | [ ] | | | | | | | | |
Pro forma as adjusted net tangible book value per share after giving effect to this offering | | | | $ | [ ] | | | | | $ | | | |
Dilution per share to new investors in this offering | | | | $ | [ ] | | | | | $ | | | |
| Assumed initial public offering price per share | | | | | | | | | | $ | 20.00 | | |
| Net tangible book value per share as of September 30, 2019 | | | | $ | 13.58 | | | | | | | | |
| Increase in net tangible book value per share attributable to new investors | | | | $ | 0.07 | | | | | | | | |
| Pro forma net tangible book value per share after giving effect to the merger with MBI and this Offering | | | | | | | | | | $ | 13.65 | | |
| Pro forma dilution per share to new investors in this offering | | | | | | | | | | $ | 6.35 | | |
|
| | Shares Held | | Total Consideration | | | Average Price per Share | | | Shares Held | | Total Consideration | | | Average Price per Share | | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | | Number | | Percent | | Amount | | Percent | | | Number | | Percent | | Amount | | Percent | | ||||||||||||||||||||||||||||||||||||||||||||
Shareholders as of September 30, 2019 | | | | 5,740,486 | | | | | % | | | | $ | 76,034 | | | | | % | | | | $ | 13.25 | | | | | | 5,740,486 | | | | | 64.9% | | | | $ | 76,034 | | | | | 55.1% | | | | $ | 13.25 | | | ||||||||||
New investors in this offering | | | | | | | | | | | | | | | | | | | | | | | $ | | | | | | | 3,100,000 | | | | | 35.1 | | | | | 62,000 | | | | | 44.9 | | | | $ | 20.00 | | | ||||||||||
Total | | | | | | | | | % | | | | $ | | | | | | % | | | | $ | | | | | | | 8,840,486 | | | | | 100.0% | | | | $ | 138,034 | | | | | 100.0% | | | | $ | 15.61 | | |
Quarter Ended | | High | | Low | | | High | | Low | | ||||||||||||||||
First Quarter 2020 (through January 3, 2020) | | | $ | 19.00 | | | | $ | 18.77 | | | |||||||||||||||
First Quarter 2020 (through January 29, 2020) | | | $ | 20.00 | | | | $ | 18.77 | | | |||||||||||||||
Fourth Quarter 2019 | | | $ | 19.00 | | | | $ | 17.87 | | | | | $ | 19.00 | | | | $ | 17.87 | | | ||||
Third Quarter 2019 | | | $ | 18.50 | | | | $ | 17.37 | | | | | $ | 18.50 | | | | $ | 17.37 | | | ||||
Second Quarter 2019 | | | $ | 17.62 | | | | $ | 17.27 | | | | | $ | 17.62 | | | | $ | 17.27 | | | ||||
First Quarter 2019 | | | $ | 17.80 | | | | $ | 15.20 | | | | | $ | 17.80 | | | | $ | 15.20 | | | ||||
Fourth Quarter 2018 | | | $ | 17.50 | | | | $ | 15.08 | | | | | $ | 17.50 | | | | $ | 15.08 | | | ||||
Third Quarter 2018 | | | $ | 18.10 | | | | $ | 17.25 | | | | | $ | 18.10 | | | | $ | 17.25 | | | ||||
Second Quarter 2018 | | | $ | 18.00 | | | | $ | 17.00 | | | | | $ | 18.00 | | | | $ | 17.00 | | | ||||
First Quarter 2018 | | | $ | 17.55 | | | | $ | 15.51 | | | | | $ | 17.55 | | | | $ | 15.51 | | |
| | | September 30, 2019 | | |||||||||
(Dollars in thousands) | | | Amount | | | Percent | | ||||||
Commercial real estate | | | | $ | 404,087 | | | | | | 71.4% | | |
Residential real estate | | | | | 64,985 | | | | | | 11.5% | | |
Commercial | | | | | 72,902 | | | | | | 12.9% | | |
Construction and development | | | | | 18,713 | | | | | | 3.3% | | |
Consumer and other loans | | | | | 4,882 | | | | | | 0.9% | | |
Total loans | | | | $ | 565,569 | | | | | | 100.0% | | |
| | | Nine Months Ended September 30, | | |||||||||||||||
(Dollars in thousands) | | | 2019 | | | 2018 | | | Change | | |||||||||
Interest income | | | | $ | 28,600 | | | | | $ | 19,442 | | | | | | 47.1% | | |
Interest expense | | | | | 7,995 | | | | | | 3,835 | | | | | | 108.5% | | |
Net Interest income | | | | | 20,605 | | | | | | 15,607 | | | | | | 32.0% | | |
Provision for loan losses | | | | | 762 | | | | | | 790 | | | | | | (3.5)% | | |
Net interest income after provision | | | | | 19,843 | | | | | | 14,817 | | | | | | 33.9% | | |
Noninterest income | | | | | 2,127 | | | | | | 1,318 | | | | | | 61.4% | | |
Noninterest expense | | | | | 20,088 | | | | | | 14,206 | | | | | | 41.4% | | |
Income before income taxes | | | | | 1,882 | | | | | | 1,929 | | | | | | (2.4)% | | |
Income tax expense | | | | | 534 | | | | | | 609 | | | | | | (12.3)% | | |
Net income | | | | $ | 1,348 | | | | | $ | 1,320 | | | | | | 2.1% | | |
| | | For the Nine Months Ended September 30, | | |||||||||||||||||||||||||||||||||
| | | 2019 | | | 2018 | | ||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Average Outstanding Balance | | | Interest Income/Expense(4) | | | Average Yield/Rate | | | Average Outstanding Balance | | | Interest Income/Expense(4) | | | Average Yield/Rate | | ||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest earning assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | | $ | 64,727 | | | | | $ | 1,131 | | | | | | 2.33% | | | | | $ | 35,180 | | | | | $ | 510 | | | | | | 1.93% | | |
Federal funds sold | | | | | 24,487 | | | | | | 459 | | | | | | 2.50% | | | | | | 20,495 | | | | | | 284 | | | | | | 1.85% | | |
Federal Reserve Bank stock, FHLB stock and other corporate stock | | | | | 4,196 | | | | | | 200 | | | | | | 6.36% | | | | | | 3,086 | | | | | | 155 | | | | | | 6.70% | | |
Investment securities | | | | | 28,182 | | | | | | 521 | | | | | | 2.46% | | | | | | 25,051 | | | | | | 478 | | | | | | 2.54% | | |
Loans(1) | | | | | 678,571 | | | | | | 26,289 | | | | | | 5.17% | | | | | | 496,416 | | | | | | 18,015 | | | | | | 4.84% | | |
Total interest earning assets | | | | | 800,163 | | | | | | 28,600 | | | | | | 4.77% | | | | | | 580,228 | | | | | | 19,442 | | | | | | 4.47% | | |
Noninterest earning assets | | | | | 44,988 | | | | | | | | | | | | | | | | | | 32,315 | | | | | | | | | | | | | | |
Total assets | | | | | 845,151 | | | | | | | | | | | | | | | | | | 612,543 | | | | | | | | | | | | | | |
Liabilities and shareholders’ equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | | | 547,245 | | | | | | 7,200 | | | | | | 1.75% | | | | | | 394,080 | | | | | | 3,332 | | | | | | 1.13% | | |
Borrowed funds | | | | | 45,058 | | | | | | 795 | | | | | | 2.35% | | | | | | 32,930 | | | | | | 503 | | | | | | 2.04% | | |
Total interest-bearing liabilities | | | | | 592,303 | | | | | | 7,995 | | | | | | 1.80% | | | | | | 427,010 | | | | | | 3,835 | | | | | | 1.20% | | |
Noninterest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing deposits | | | | | 163,513 | | | | | | | | | | | | | | | | | | 123,703 | | | | | | | | | | | | | | |
Other noninterest-bearing liabilities | | | | | 9,545 | | | | | | | | | | | | | | | | | | 3,841 | | | | | | | | | | | | | | |
Shareholders’ equity | | | | | 79,790 | | | | | | | | | | | | | | | | | | 57,989 | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | | | $ | 845,151 | | | | | | | | | | | | | | | | | $ | 612,543 | | | | | | | | | | | | | | |
Net interest spread(2) | | | | | | | | | | | | | | | | | 2.97% | | | | | | | | | | | | | | | | | | 3.27% | | |
Net interest income | | | | | | | | | | $ | 20,605 | | | | | | | | | | | | | | | | | $ | 15,607 | | | | | | | | |
Net interest margin(3) | | | | | | | | | | | | | | | | | 3.43% | | | | | | | | | | | | | | | | | | 3.59% | | |
| | | For the Nine Months Ended September 30, 2019 Compared to 2018 | | |||||||||||||||
| | | Change Due To | | | ||||||||||||||
(Dollars in thousands) | | | Volume | | | Rate | | | Total | | |||||||||
Interest income | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | | $ | 428 | | | | | $ | 193 | | | | | $ | 621 | | |
Federal funds sold | | | | | 55 | | | | | | 120 | | | | | | 175 | | |
Federal Reserve Bank stock, Federal Home Loan Bank stock and other corporate stock | | | | | 56 | | | | | | (11) | | | | | | 45 | | |
Investment securities | | | | | 59 | | | | | | (16) | | | | | | 43 | | |
Loans | | | | | 6,625 | | | | | | 1,649 | | | | | | 8,274 | | |
Total | | | | $ | 7,224 | | | | | $ | 1,934 | | | | | $ | 9,158 | | |
Interest expense | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | | | 1,226 | | | | | | 2,642 | | | | | | 3,868 | | |
Borrowed funds | | | | | 185 | | | | | | 107 | | | | | | 292 | | |
Total | | | | $ | 1,411 | | | | | $ | 2,749 | | | | | $ | 4,160 | | |
| | | Nine Months Ended September 30, | | |||||||||||||||
(Dollars in thousands) | | | 2019 | | | 2018 | | | Increase (Decrease) | | |||||||||
Noninterest income | | | | | | | | | | | | | | | | | | | |
Deposit account service charges | | | | $ | 542 | | | | | $ | 437 | | | | | | 24.0% | | |
Mortgage banking revenue | | | | | 201 | | | | | | 144 | | | | | | 39.6% | | |
Gain (loss) on sale of securities | | | | | 3 | | | | | | — | | | | | | N/A | | |
Swap referral fees | | | | | 802 | | | | | | 19 | | | | | | 4,121.1% | | |
SBA loan origination fees | | | | | 79 | | | | | | 296 | | | | (73.3)% | | |||
Other fees and charges | | | | | 500 | | | | | | 422 | | | | 18.5% | | |||
Total noninterest income | | | | $ | 2,127 | | | | | $ | 1,318 | | | | | | 61.4% | | |
| | | Nine Months Ended September 30, | | |||||||||||||||
(Dollars in thousands) | | | 2019 | | | 2018 | | | Increase (Decrease) | | |||||||||
Noninterest expense | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | | $ | 13,534 | | | | | $ | 9,331 | | | | | | 45.0% | | |
Occupancy and equipment | | | | | 1,824 | | | | | | 1,400 | | | | | | 30.3% | | |
Professional services | | | | | 1,106 | | | | | | 400 | | | | | | 176.5% | | |
Data processing | | | | | 489 | | | | | | 466 | | | | | | 4.9% | | |
Marketing | | | | | 400 | | | | | | 279 | | | | | | 43.4% | | |
Other | | | | | 2,735 | | | | | | 2,330 | | | | | | 17.4% | | |
Total noninterest expense | | | | $ | 20,088 | | | | | $ | 14,206 | | | | | | 41.4% | | |
| | | Years Ended December 31, | | | Years Ended December 31, | | ||||||||||||||||||||||||||||||
(Dollars in thousands) | | | 2018 | | | 2017 | | | Change | | | 2017 | | | 2016 | | | Change | | ||||||||||||||||||
Interest income | | | | $ | 27,750 | | | | | $ | 18,857 | | | | | | 47.2% | | | | | $ | 18,857 | | | | | $ | 14,265 | | | | | | 32.2% | | |
Interest expense | | | | | 5,837 | | | | | | 2,869 | | | | | | 103.5% | | | | | | 2,869 | | | | | | 2,122 | | | | | | 35.2% | | |
Net Interest income | | | | | 21,913 | | | | | | 15,988 | | | | | | 37.1% | | | | | | 15,988 | | | | | | 12,143 | | | | | | 31.7% | | |
Provision for loan losses | | | | | 1,150 | | | | | | 991 | | | | | | 16.0% | | | | | | 991 | | | | | | 1,065 | | | | | | (6.9)% | | |
Net interest income after provision | | | | | 20,763 | | | | | | 14,997 | | | | | | 38.4% | | | | | | 14,997 | | | | | | 11,078 | | | | | | 35.4% | | |
Noninterest income | | | | | 1,874 | | | | | | 1,786 | | | | | | 4.9% | | | | | | 1,786 | | | | | | 1,369 | | | | | | 30.5% | | |
Noninterest expense | | | | | 19,862 | | | | | | 13,125 | | | | | | 51.3% | | | | | | 13,125 | | | | | | 10,573 | | | | | | 24.1% | | |
Income before income taxes | | | | | 2,775 | | | | | | 3,658 | | | | | | (24.1)% | | | | | | 3,658 | | | | | | 1,874 | | | | | | 95.2% | | |
Income tax expense | | | | | 669 | | | | | | 1,844 | | | | | | (63.7)% | | | | | | 1,844 | | | | | | 743 | | | | | | 148.2% | | |
Net income | | | | $ | 2,106 | | | | | $ | 1,814 | | | | | | 16.1% | | | | | $ | 1,814 | | | | | $ | 1,131 | | | | | | 60.4% | | |
|
| | | For the Years Ended December 31, | | |||||||||||||||||||||||||||||||||||||||||||||||||||
| | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Average Outstanding Balance | | | Interest Income/ Expense(4) | | | Average Yield/Rate | | | Average Outstanding Balance | | | Interest Income/ Expense(4) | | | Average Yield/Rate | | | Average Outstanding Balance | | | Interest Income/ Expense(4) | | | Average Yield/Rate | | |||||||||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest earning assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | | $ | 41,306 | | | | | $ | 852 | | | | | | 2.06% | | | | | $ | 10,190 | | | | | $ | 112 | | | | | | 1.10% | | | | | $ | 12,817 | | | | | $ | 67 | | | | | | 0.52% | | |
Federal funds sold | | | | | 20,736 | | | | | | 414 | | | | | | 2.00% | | | | | | 12,292 | | | | | | 144 | | | | | | 1.17% | | | | | | 8,935 | | | | | | 50 | | | | | | 0.56% | | |
Federal Reserve Bank stock, FHLB stock and other corporate stock | | | | | 3,232 | | | | | | 214 | | | | | | 6.62% | | | | | | 2,078 | | | | | | 118 | | | | | | 5.66% | | | | | | 1,856 | | | | | | 99 | | | | | | 5.34% | | |
Investment securities | | | | | 24,056 | | | | | | 637 | | | | | | 2.65% | | | | | | 29,398 | | | | | | 626 | | | | | | 2.13% | | | | | | 33,597 | | | | | | 582 | | | | | | 1.73% | | |
Loans(1) | | | | | 520,131 | | | | | | 25,633 | | | | | | 4.93% | | | | | | 380,285 | | | | | | 17,857 | | | | | | 4.70% | | | | | | 281,434 | | | | | | 13,468 | | | | | | 4.79% | | |
Total interest earning assets | | | | | 609,461 | | | | | | 27,750 | | | | | | 4.55% | | | | | | 434,243 | | | | | | 18,857 | | | | | | 4.34% | | | | | | 338,639 | | | | | | 14,265 | | | | | | 4.21% | | |
Noninterest earning assets | | | | | 32,182 | | | | | | | | | | | | | | | | | | 26,275 | | | | | | | | | | | | | | | | | | 19,745 | | | | | | | | | | | | | | |
Total assets | | | | | 641,643 | | | | | | | | | | | | | | | | | | 460,518 | | | | | | | | | | | | | | | | | | 358,384 | | | | | | | | | | | | | | |
Liabilities and shareholders’ equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | | | 415,553 | | | | | | 5,104 | | | | | | 1.23% | | | | | | 293,560 | | | | | | 2,634 | | | | | | 0.90% | | | | | | 234,983 | | | | | | 1,945 | | | | | | 0.83% | | |
Borrowed funds | | | | | 34,713 | | | | | | 733 | | | | | | 2.11% | | | | | | 17,480 | | | | | | 235 | | | | | | 1.34% | | | | | | 16,965 | | | | | | 177 | | | | | | 1.04% | | |
Total interest-bearing liabilities | | | | | 450,266 | | | | | | 5,837 | | | | | | 1.30% | | | | | | 311,040 | | | | | | 2,869 | | | | | | 0.92% | | | | | | 251,948 | | | | | | 2,122 | | | | | | 0.84% | | |
Noninterest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing deposits | | | | | 127,659 | | | | | | | | | | | | | | | | | | 91,230 | | | | | | | | | | | | | | | | | | 68,142 | | | | | | | | | | | | | | |
Other noninterest-bearing liabilities | | | | | 3,883 | | | | | | | | | | | | | | | | | | 3,232 | | | | | | | | | | | | | | | | | | 2,414 | | | | | | | | | | | | | | |
Shareholders’ equity | | | | | 59,835 | | | | | | | | | | | | | | | | | | 55,016 | | | | | | | | | | | | | | | | | | 35,880 | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | | | $ | 641,643 | | | | | | | | | | | | | | | | | $ | 460,518 | | | | | | | | | | | | | | | | | $ | 358,384 | | | | | | | | | | | | | | |
Net interest spread(2) | | | | | | | | | | | | | | | | | 3.25% | | | | | | | | | | | | | | | | | | 3.42% | | | | | | | | | | | | | | | | | | 3.37% | | |
Net interest income | | | | | | | | | | $ | 21,913 | | | | | | | | | | | | | | | | | $ | 15,988 | | | | | | | | | | | | | | | | | $ | 12,143 | | | | | | | | |
Net interest margin(3) | | | | | | | | | | | | | | | | | 3.60% | | | | | | | | | | | | | | | | | | 3.68% | | | | | | | | | | | | | | | | | | 3.59% | | |
|
| | | For the Years Ended December 31, 2018 Compared to 2017 | | | For the Years Ended December 31, 2017 Compared to 2016 | | ||||||||||||||||||||||||||||||
| | | Change Due To | | | | | | | | | Change Due To | | | |||||||||||||||||||||||
(Dollars in thousands) | | | Volume | | | Rate | | | Total | | | Volume | | | Rate | | | Total | | ||||||||||||||||||
Interest income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | | $ | 343 | | | | | $ | 397 | | | | | $ | 740 | | | | | $ | (14) | | | | | $ | 59 | | | | | $ | 46 | | |
Federal funds sold | | | | | 99 | | | | | | 171 | | | | | | 270 | | | | | | 19 | | | | | | 75 | | | | | | 94 | | |
Federal Reserve Bank stock, Federal Home Loan Bank stock and other corporate stock | | | | | 65 | | | | | | 31 | | | | | | 96 | | | | | | 12 | | | | | | 7 | | | | | | 19 | | |
Investment securities | | | | | (114) | | | | | | 125 | | | | | | 11 | | | | | | (73) | | | | | | 116 | | | | | | 44 | | |
Loans | | | | | 6,567 | | | | | | 1,209 | | | | | | 7,776 | | | | | | 4,730 | | | | | | (341) | | | | | | 4,389 | | |
Total | | | | $ | 6,960 | | | | | $ | 1,933 | | | | | $ | 8,893 | | | | | $ | 4,675 | | | | | $ | (83) | | | | | $ | 4,592 | | |
Interest expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | | | 1,095 | | | | | | 1,375 | | | | | | 2,470 | | | | | | 485 | | | | | | 205 | | | | | | 690 | | |
Borrowed funds | | | | | 232 | | | | | | 266 | | | | | | 498 | | | | | | 5 | | | | | | 53 | | | | | | 58 | | |
Total | | | | $ | 1,327 | | | | | $ | 1,641 | | | | | $ | 2,968 | | | | | $ | 490 | | | | | $ | 258 | | | | | $ | 748 | | |
| | | Years Ended December 31, | | | Years Ended December 31, | | ||||||||||||||||||||||||||||||
(Dollars in thousands) | | | 2018 | | | 2017 | | | Increase (Decrease) | | | 2017 | | | 2016 | | | Increase (Decrease) | | ||||||||||||||||||
Noninterest income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposit account service charges | | | | $ | 283 | | | | | $ | 194 | | | | | | 45.9% | | | | | $ | 194 | | | | | $ | 188 | | | | | | 3.2% | | |
Mortgage banking revenue | | | | | 209 | | | | | | 18 | | | | | | 1,061.1% | | | | | | 18 | | | | | | 86 | | | | | | (79.1)% | | |
Gain (loss) on sale of securities | | | | | — | | | | | | — | | | | | | 0.0% | | | | | | — | | | | | | — | | | | | | 0.0% | | |
Swap referral fees | | | | | 211 | | | | | | 169 | | | | | | 24.9% | | | | | | 169 | | | | | | 63 | | | | | | 168.3% | | |
SBA origination fees | | | | | 308 | | | | | | 646 | | | | | | (52.3)% | | | | | | 646 | | | | | | 368 | | | | | | 75.5% | | |
Other fees and charges | | | | | 863 | | | | | | 759 | | | | | | 13.7% | | | | | | 759 | | | | | | 664 | | | | | | 14.3% | | |
Total noninterest income | | | | $ | 1,874 | | | | | $ | 1,786 | | | | | | 4.9% | | | | | $ | 1,786 | | | | | $ | 1,369 | | | | | | 30.5% | | |
| | | Years Ended December 31, | | | Years Ended December 31, | | ||||||||||||||||||||||||||||||
(Dollars in thousands) | | | 2018 | | | 2017 | | | Increase (Decrease) | | | 2017 | | | 2016 | | | Increase (Decrease) | | ||||||||||||||||||
Noninterest expense | | | | | | | | ||||||||||||||||||||||||||||||
Salaries and benefits | | | | $ | 13,538 | | | | | $ | 8,672 | | | | | | 56% | | | | | $ | 8,672 | | | | | $ | 6,290 | | | | | | 38% | | |
Occupancy and equipment | | | | | 1,872 | | | | | | 1,473 | | | | | | 27% | | | | | | 1,473 | | | | | | 1,167 | | | | | | 26% | | |
Professional services | | | | | 693 | | | | | | 396 | | | | | | 75% | | | | | | 396 | | | | | | 496 | | | | | | (20)% | | |
Data processing | | | | | 624 | | | | | | 524 | | | | | | 19% | | | | | | 524 | | | | | | 983 | | | | | | (47)% | | |
Marketing | | | | | 430 | | | | | | 180 | | | | | | 139% | | | | | | 180 | | | | | | 185 | | | | | | (3)% | | |
Other | | | | | 2,705 | | | | | | 1,880 | | | | | | 44% | | | | | | 1,880 | | | | | | 1,452 | | | | | | 29% | | |
Total noninterest expense | | | | $ | 19,862 | | | | | $ | 13,125 | | | | | | 51% | | | | | $ | 13,125 | | | | | $ | 10,573 | | | | | | 24% | | |
| | | September 30, 2019 | | |||||||||
(Dollars in thousands) | | | Amount | | | Percent | | ||||||
Commercial real estate | | | | $ | 404,087 | | | | | | 71.4% | | |
Residential real estate | | | | | 64,985 | | | | | | 11.5% | | |
Commercial | | | | | 72,902 | | | | | | 12.9% | | |
Construction and development | | | | | 18,713 | | | | | | 3.3% | | |
Consumer and other loans | | | | | 4,882 | | | | | | 0.9% | | |
Total loans | | | | $ | 565,569 | | | | | | 100.0% | | |
| | | Nine Months Ended September 30, | | |||||||||||||||
(Dollars in thousands) | | | 2019 | | | 2018 | | | Change | | |||||||||
Interest income | | | | $ | 28,600 | | | | | $ | 19,442 | | | | | | 47.1% | | |
Interest expense | | | | | 7,995 | | | | | | 3,835 | | | | | | 108.5% | | |
Net Interest income | | | | | 20,605 | | | | | | 15,607 | | | | | | 32.0% | | |
Provision for loan losses | | | | | 762 | | | | | | 790 | | | | | | (3.5)% | | |
Net interest income after provision | | | | | 19,843 | | | | | | 14,817 | | | | | | 33.9% | | |
Noninterest income | | | | | 2,127 | | | | | | 1,318 | | | | | | 61.4% | | |
Noninterest expense | | | | | 20,088 | | | | | | 14,206 | | | | | | 41.4% | | |
Income before income taxes | | | | | 1,882 | | | | | | 1,929 | | | | | | (2.4)% | | |
Income tax expense | | | | | 534 | | | | | | 609 | | | | | | (12.3)% | | |
Net income | | | | $ | 1,348 | | | | | $ | 1,320 | | | | | | 2.1% | | |
| | | September 30, 2019 | | |||||||||
(Dollars in thousands) | | | Amount | | | Percent | | ||||||
Commercial real estate | | | | $ | 404,087 | | | | | | 71.4% | | |
Residential real estate | | | | | 64,985 | | | | | | 11.5% | | |
Commercial | | | | | 72,902 | | | | | | 12.9% | | |
Construction and development | | | | | 18,713 | | | | | | 3.3% | | |
Consumer and other loans | | | | | 4,882 | | | | | | 0.9% | | |
Total loans | | | | $ | 565,569 | | | | | | 100.0% | | |
| | | Nine Months Ended September 30, | | |||||||||||||||
(Dollars in thousands) | | | 2019 | | | 2018 | | | Change | | |||||||||
Interest income | | | | $ | 28,600 | | | | | $ | 19,442 | | | | | | 47.1% | | |
Interest expense | | | | | 7,995 | | | | | | 3,835 | | | | | | 108.5% | | |
Net Interest income | | | | | 20,605 | | | | | | 15,607 | | | | | | 32.0% | | |
Provision for loan losses | | | | | 762 | | | | | | 790 | | | | | | (3.5)% | | |
Net interest income after provision | | | | | 19,843 | | | | | | 14,817 | | | | | | 33.9% | | |
Noninterest income | | | | | 2,127 | | | | | | 1,318 | | | | | | 61.4% | | |
Noninterest expense | | | | | 20,088 | | | | | | 14,206 | | | | | | 41.4% | | |
Income before income taxes | | | | | 1,882 | | | | | | 1,929 | | | | | | (2.4)% | | |
Income tax expense | | | | | 534 | | | | | | 609 | | | | | | (12.3)% | | |
Net income | | | | $ | 1,348 | | | | | $ | 1,320 | | | | | | 2.1% | | |
| | | For the Nine Months Ended September 30, | | |||||||||||||||||||||||||||||||||
| | | 2019 | | | 2018 | | ||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Average Outstanding Balance | | | Interest Income/Expense(4) | | | Average Yield/Rate | | | Average Outstanding Balance | | | Interest Income/Expense(4) | | | Average Yield/Rate | | ||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest earning assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | | $ | 64,727 | | | | | $ | 1,131 | | | | | | 2.33% | | | | | $ | 35,180 | | | | | $ | 510 | | | | | | 1.93% | | |
Federal funds sold | | | | | 24,487 | | | | | | 459 | | | | | | 2.50% | | | | | | 20,495 | | | | | | 284 | | | | | | 1.85% | | |
Federal Reserve Bank stock, FHLB stock and other corporate stock | | | | | 4,196 | | | | | | 200 | | | | | | 6.36% | | | | | | 3,086 | | | | | | 155 | | | | | | 6.70% | | |
Investment securities | | | | | 28,182 | | | | | | 521 | | | | | | 2.46% | | | | | | 25,051 | | | | | | 478 | | | | | | 2.54% | | |
Loans(1) | | | | | 678,571 | | | | | | 26,289 | | | | | | 5.17% | | | | | | 496,416 | | | | | | 18,015 | | | | | | 4.84% | | |
Total interest earning assets | | | | | 800,163 | | | | | | 28,600 | | | | | | 4.77% | | | | | | 580,228 | | | | | | 19,442 | | | | | | 4.47% | | |
Noninterest earning assets | | | | | 44,988 | | | | | | | | | | | | | | | | | | 32,315 | | | | | | | | | | | | | | |
Total assets | | | | | 845,151 | | | | | | | | | | | | | | | | | | 612,543 | | | | | | | | | | | | | | |
Liabilities and shareholders’ equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | | | 547,245 | | | | | | 7,200 | | | | | | 1.75% | | | | | | 394,080 | | | | | | 3,332 | | | | | | 1.13% | | |
Borrowed funds | | | | | 45,058 | | | | | | 795 | | | | | | 2.35% | | | | | | 32,930 | | | | | | 503 | | | | | | 2.04% | | |
Total interest-bearing liabilities | | | | | 592,303 | | | | | | 7,995 | | | | | | 1.80% | | | | | | 427,010 | | | | | | 3,835 | | | | | | 1.20% | | |
Noninterest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing deposits | | | | | 163,513 | | | | | | | | | | | | | | | | | | 123,703 | | | | | | | | | | | | | | |
Other noninterest-bearing liabilities | | | | | 9,545 | | | | | | | | | | | | | | | | | | 3,841 | | | | | | | | | | | | | | |
Shareholders’ equity | | | | | 79,790 | | | | | | | | | | | | | | | | | | 57,989 | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | | | $ | 845,151 | | | | | | | | | | | | | | | | | $ | 612,543 | | | | | | | | | | | | | | |
Net interest spread(2) | | | | | | | | | | | | | | | | | 2.97% | | | | | | | | | | | | | | | | | | 3.27% | | |
Net interest income | | | | | | | | | | $ | 20,605 | | | | | | | | | | | | | | | | | $ | 15,607 | | | | | | | | |
Net interest margin(3) | | | | | | | | | | | | | | | | | 3.43% | | | | | | | | | | | | | | | | | | 3.59% | | |
| | | For the Nine Months Ended September 30, 2019 Compared to 2018 | | |||||||||||||||
| | | Change Due To | | | ||||||||||||||
(Dollars in thousands) | | | Volume | | | Rate | | | Total | | |||||||||
Interest income | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | | $ | 428 | | | | | $ | 193 | | | | | $ | 621 | | |
Federal funds sold | | | | | 55 | | | | | | 120 | | | | | | 175 | | |
Federal Reserve Bank stock, Federal Home Loan Bank stock and other corporate stock | | | | | 56 | | | | | | (11) | | | | | | 45 | | |
Investment securities | | | | | 59 | | | | | | (16) | | | | | | 43 | | |
Loans | | | | | 6,625 | | | | | | 1,649 | | | | | | 8,274 | | |
Total | | | | $ | 7,224 | | | | | $ | 1,934 | | | | | $ | 9,158 | | |
Interest expense | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | | | 1,226 | | | | | | 2,642 | | | | | | 3,868 | | |
Borrowed funds | | | | | 185 | | | | | | 107 | | | | | | 292 | | |
Total | | | | $ | 1,411 | | | | | $ | 2,749 | | | | | $ | 4,160 | | |
| | | Nine Months Ended September 30, | | |||||||||||||||
(Dollars in thousands) | | | 2019 | | | 2018 | | | Increase (Decrease) | | |||||||||
Noninterest income | | | | | | | | | | | | | | | | | | | |
Deposit account service charges | | | | $ | 542 | | | | | $ | 437 | | | | | | 24.0% | | |
Mortgage banking revenue | | | | | 201 | | | | | | 144 | | | | | | 39.6% | | |
Gain (loss) on sale of securities | | | | | 3 | | | | | | — | | | | | | N/A | | |
Swap referral fees | | | | | 802 | | | | | | 19 | | | | | | 4,121.1% | | |
SBA loan origination fees | | | | | 79 | | | | | | 296 | | | | (73.3)% | | |||
Other fees and charges | | | | | 500 | | | | | | 422 | | | | 18.5% | | |||
Total noninterest income | | | | $ | 2,127 | | | | | $ | 1,318 | | | | | | 61.4% | | |
| | | Nine Months Ended September 30, | | |||||||||||||||
(Dollars in thousands) | | | 2019 | | | 2018 | | | Increase (Decrease) | | |||||||||
Noninterest expense | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | | $ | 13,534 | | | | | $ | 9,331 | | | | | | 45.0% | | |
Occupancy and equipment | | | | | 1,824 | | | | | | 1,400 | | | | | | 30.3% | | |
Professional services | | | | | 1,106 | | | | | | 400 | | | | | | 176.5% | | |
Data processing | | | | | 489 | | | | | | 466 | | | | | | 4.9% | | |
Marketing | | | | | 400 | | | | | | 279 | | | | | | 43.4% | | |
Other | | | | | 2,735 | | | | | | 2,330 | | | | | | 17.4% | | |
Total noninterest expense | | | | $ | 20,088 | | | | | $ | 14,206 | | | | | | 41.4% | | |
| | | Years Ended December 31, | | | Years Ended December 31, | | ||||||||||||||||||||||||||||||
(Dollars in thousands) | | | 2018 | | | 2017 | | | Change | | | 2017 | | | 2016 | | | Change | | ||||||||||||||||||
Interest income | | | | $ | 27,750 | | | | | $ | 18,857 | | | | | | 47.2% | | | | | $ | 18,857 | | | | | $ | 14,265 | | | | | | 32.2% | | |
Interest expense | | | | | 5,837 | | | | | | 2,869 | | | | | | 103.5% | | | | | | 2,869 | | | | | | 2,122 | | | | | | 35.2% | | |
Net Interest income | | | | | 21,913 | | | | | | 15,988 | | | | | | 37.1% | | | | | | 15,988 | | | | | | 12,143 | | | | | | 31.7% | | |
Provision for loan losses | | | | | 1,150 | | | | | | 991 | | | | | | 16.0% | | | | | | 991 | | | | | | 1,065 | | | | | | (6.9)% | | |
Net interest income after provision | | | | | 20,763 | | | | | | 14,997 | | | | | | 38.4% | | | | | | 14,997 | | | | | | 11,078 | | | | | | 35.4% | | |
Noninterest income | | | | | 1,874 | | | | | | 1,786 | | | | | | 4.9% | | | | | | 1,786 | | ��� | | | | 1,369 | | | | | | 30.5% | | |
Noninterest expense | | | | | 19,862 | | | | | | 13,125 | | | | | | 51.3% | | | | | | 13,125 | | | | | | 10,573 | | | | | | 24.1% | | |
Income before income taxes | | | | | 2,775 | | | | | | 3,658 | | | | | | (24.1)% | | | | | | 3,658 | | | | | | 1,874 | | | | | | 95.2% | | |
Income tax expense | | | | | 669 | | | | | | 1,844 | | | | | | (63.7)% | | | | | | 1,844 | | | | | | 743 | | | | | | 148.2% | | |
Net income | | | | $ | 2,106 | | | | | $ | 1,814 | | | | | | 16.1% | | | | | $ | 1,814 | | | | | $ | 1,131 | | | | | | 60.4% | | |
|
| | | For the Years Ended December 31, | | |||||||||||||||||||||||||||||||||||||||||||||||||||
| | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Average Outstanding Balance | | | Interest Income/ Expense(4) | | | Average Yield/Rate | | | Average Outstanding Balance | | | Interest Income/ Expense(4) | | | Average Yield/Rate | | | Average Outstanding Balance | | | Interest Income/ Expense(4) | | | Average Yield/Rate | | |||||||||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest earning assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | | $ | 41,306 | | | | | $ | 852 | | | | | | 2.06% | | | | | $ | 10,190 | | | | | $ | 112 | | | | | | 1.10% | | | | | $ | 12,817 | | | | | $ | 67 | | | | | | 0.52% | | |
Federal funds sold | | | | | 20,736 | | | | | | 414 | | | | | | 2.00% | | | | | | 12,292 | | | | | | 144 | | | | | | 1.17% | | | | | | 8,935 | | | | | | 50 | | | | | | 0.56% | | |
Federal Reserve Bank stock, FHLB stock and other corporate stock | | | | | 3,232 | | | | | | 214 | | | | | | 6.62% | | | | | | 2,078 | | | | | | 118 | | | | | | 5.66% | | | | | | 1,856 | | | | | | 99 | | | | | | 5.34% | | |
Investment securities | | | | | 24,056 | | | | | | 637 | | | | | | 2.65% | | | | | | 29,398 | | | | | | 626 | | | | | | 2.13% | | | | | | 33,597 | | | | | | 582 | | | | | | 1.73% | | |
Loans(1) | | | | | 520,131 | | | | | | 25,633 | | | | | | 4.93% | | | | | | 380,285 | | | | | | 17,857 | | | | | | 4.70% | | | | | | 281,434 | | | | | | 13,468 | | | | | | 4.79% | | |
Total interest earning assets | | | | | 609,461 | | | | | | 27,750 | | | | | | 4.55% | | | | | | 434,243 | | | | | | 18,857 | | | | | | 4.34% | | | | | | 338,639 | | | | | | 14,265 | | | | | | 4.21% | | |
Noninterest earning assets | | | | | 32,182 | | | | | | | | | | | | | | | | | | 26,275 | | | | | | | | | | | | | | | | | | 19,745 | | | | | | | | | | | | | | |
Total assets | | | | | 641,643 | | | | | | | | | | | | | | | | | | 460,518 | | | | | | | | | | | | | | | | | | 358,384 | | | | | | | | | | | | | | |
Liabilities and shareholders’ equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | | | 415,553 | | | | | | 5,104 | | | | | | 1.23% | | | | | | 293,560 | | | | | | 2,634 | | | | | | 0.90% | | | | | | 234,983 | | | | | | 1,945 | | | | | | 0.83% | | |
Borrowed funds | | | | | 34,713 | | | | | | 733 | | | | | | 2.11% | | | | | | 17,480 | | | | | | 235 | | | | | | 1.34% | | | | | | 16,965 | | | | | | 177 | | | | | | 1.04% | | |
Total interest-bearing liabilities | | | | | 450,266 | | | | | | 5,837 | | | | | | 1.30% | | | | | | 311,040 | | | | | | 2,869 | | | | | | 0.92% | | | | | | 251,948 | | | | | | 2,122 | | | | | | 0.84% | | |
Noninterest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing deposits | | | | | 127,659 | | | | | | | | | | | | | | | | | | 91,230 | | | | | | | | | | | | | | | | | | 68,142 | | | | | | | | | | | | | | |
Other noninterest-bearing liabilities | | | | | 3,883 | | | | | | | | | | | | | | | | | | 3,232 | | | | | | | | | | | | | | | | | | 2,414 | | | | | | | | | | | | | | |
Shareholders’ equity | | | | | 59,835 | | | | | | | | | | | | | | | | | | 55,016 | | | | | | | | | | | | | | | | | | 35,880 | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | | | $ | 641,643 | | | | | | | | | | | | | | | | | $ | 460,518 | | | | | | | | | | | | | | | | | $ | 358,384 | | | | | | | | | | | | | | |
Net interest spread(2) | | | | | | | | | | | | | | | | | 3.25% | | | | | | | | | | | | | | | | | | 3.42% | | | | | | | | | | | | | | | | | | 3.37% | | |
Net interest income | | | | | | | | | | $ | 21,913 | | | | | | | | | | | | | | | | | $ | 15,988 | | | | | | | | | | | | | | | | | $ | 12,143 | | | | | | | | |
Net interest margin(3) | | | | | | | | | | | | | | | | | 3.60% | | | | | | | | | | | | | | | | | | 3.68% | | | | | | | | | | | | | | | | | | 3.59% | | |
|
| | | For the Years Ended December 31, 2018 Compared to 2017 | | | For the Years Ended December 31, 2017 Compared to 2016 | | ||||||||||||||||||||||||||||||
| | | Change Due To | | | | | | | | | Change Due To | | | |||||||||||||||||||||||
(Dollars in thousands) | | | Volume | | | Rate | | | Total | | | Volume | | | Rate | | | Total | | ||||||||||||||||||
Interest income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | | $ | 343 | | | | | $ | 397 | | | | | $ | 740 | | | | | $ | (14) | | | | | $ | 59 | | | | | $ | 46 | | |
Federal funds sold | | | | | 99 | | | | | | 171 | | | | | | 270 | | | | | | 19 | | | | | | 75 | | | | | | 94 | | |
Federal Reserve Bank stock, Federal Home Loan Bank stock and other corporate stock | | | | | 65 | | | | | | 31 | | | | | | 96 | | | | | | 12 | | | | | | 7 | | | | | | 19 | | |
Investment securities | | | | | (114) | | | | | | 125 | | | | | | 11 | | | | | | (73) | | | | | | 116 | | | | | | 44 | | |
Loans | | | | | 6,567 | | | | | | 1,209 | | | | | | 7,776 | | | | | | 4,730 | | | | | | (341) | | | | | | 4,389 | | |
Total | | | | $ | 6,960 | | | | | $ | 1,933 | | | | | $ | 8,893 | | | | | $ | 4,675 | | | | | $ | (83) | | | | | $ | 4,592 | | |
Interest expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | | | 1,095 | | | | | | 1,375 | | | | | | 2,470 | | | | | | 485 | | | | | | 205 | | | | | | 690 | | |
Borrowed funds | | | | | 232 | | | | | | 266 | | | | | | 498 | | | | | | 5 | | | | | | 53 | | | | | | 58 | | |
Total | | | | $ | 1,327 | | | | | $ | 1,641 | | | | | $ | 2,968 | | | | | $ | 490 | | | | | $ | 258 | | | | | $ | 748 | | |
| | | Years Ended December 31, | | | Years Ended December 31, | | ||||||||||||||||||||||||||||||
(Dollars in thousands) | | | 2018 | | | 2017 | | | Increase (Decrease) | | | 2017 | | | 2016 | | | Increase (Decrease) | | ||||||||||||||||||
Noninterest income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposit account service charges | | | | $ | 283 | | | | | $ | 194 | | | | | | 45.9% | | | | | $ | 194 | | | | | $ | 188 | | | | | | 3.2% | | |
Mortgage banking revenue | | | | | 209 | | | | | | 18 | | | | | | 1,061.1% | | | | | | 18 | | | | | | 86 | | | | | | (79.1)% | | |
Gain (loss) on sale of securities | | | | | — | | | | | | — | | | | | | 0.0% | | | | | | — | | | | | | — | | | | | | 0.0% | | |
Swap referral fees | | | | | 211 | | | | | | 169 | | | | | | 24.9% | | | | | | 169 | | | | | | 63 | | | | | | 168.3% | | |
SBA origination fees | | | | | 308 | | | | | | 646 | | | | | | (52.3)% | | | | | | 646 | | | | | | 368 | | | | | | 75.5% | | |
Other fees and charges | | | | | 863 | | | | | | 759 | | | | | | 13.7% | | | | | | 759 | | | | | | 664 | | | | | | 14.3% | | |
Total noninterest income | | | | $ | 1,874 | | | | | $ | 1,786 | | | | | | 4.9% | | | | | $ | 1,786 | | | | | $ | 1,369 | | | | | | 30.5% | | |
| | | Years Ended December 31, | | | Years Ended December 31, | | ||||||||||||||||||||||||||||||
(Dollars in thousands) | | | 2018 | | | 2017 | | | Increase (Decrease) | | | 2017 | | | 2016 | | | Increase (Decrease) | | ||||||||||||||||||
Noninterest expense | | | | | | | | ||||||||||||||||||||||||||||||
Salaries and benefits | | | | $ | 13,538 | | | | | $ | 8,672 | | | | | | 56% | | | | | $ | 8,672 | | | | | $ | 6,290 | | | | | | 38% | | |
Occupancy and equipment | | | | | 1,872 | | | | | | 1,473 | | | | | | 27% | | | | | | 1,473 | | | | | | 1,167 | | | | | | 26% | | |
Professional services | | | | | 693 | | | | | | 396 | | | | | | 75% | | | | | | 396 | | | | | | 496 | | | | | | (20)% | | |
Data processing | | | | | 624 | | | | | | 524 | | | | | | 19% | | | | | �� | 524 | | | | | | 983 | | | | | | (47)% | | |
Marketing | | | | | 430 | | | | | | 180 | | | | | | 139% | | | | | | 180 | | | | | | 185 | | | | | | (3)% | | |
Other | | | | | 2,705 | | | | | | 1,880 | | | | | | 44% | | | | | | 1,880 | | | | | | 1,452 | | | | | | 29% | | |
Total noninterest expense | | | | $ | 19,862 | | | | | $ | 13,125 | | | | | | 51% | | | | | $ | 13,125 | | | | | $ | 10,573 | | | | | | 24% | | |
| | | | | | | | | | | | | | | December 31, | | |||||||||||||||||||||||||||||||||
| | | September 30, 2019 | | | 2018 | | | 2017 | | | 2016 | | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Book Value | | | Fair Value | | | Book Value | | | Fair Value | | | Book Value | | | Fair Value | | | Book Value | | | Fair Value | | ||||||||||||||||||||||||
Securities Available for Sale | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Government-sponsored agencies | | | | $ | 16,139 | | | | | $ | 16,024 | | | | | $ | 7,563 | | | | | $ | 7,449 | | | | | $ | 10,173 | | | | | $ | 10,111 | | | | | $ | 12,466 | | | | | $ | 12,423 | | |
Mortgage-backed securities | | | | | 5,688 | | | | | | 5,628 | | | | | | 6,533 | | | | | | 6,308 | | | | | | 7,827 | | | | | | 7,626 | | | | | | 9,597 | | | | | | 9,370 | | |
U.S. Agency obligations | | | | | 4,493 | | | | | | 4,585 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Mutual funds | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,000 | | | | | | 963 | | | | | | 1,000 | | | | | | 963 | | |
Corporate bonds | | | | | 2,000 | | | | | | 1,999 | | | | | | 6,000 | | | | | | 5,828 | | | | | | 7,990 | | | | | | 8,020 | | | | | | 7,976 | | | | | | 8,012 | | |
Total | | | | $ | 28,320 | | | | | $ | 28,236 | | | | | $ | 20,096 | | | | | $ | 19,585 | | | | | $ | 26,990 | | | | | $ | 26,720 | | | | | $ | 31,039 | | | | | $ | 30,768 | | |
Securities Held to Maturity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mortgage-backed securities | | | | | 224 | | | | | | 236 | | | | | | 259 | | | | | | 265 | | | | | | 316 | | | | | | 325 | | | | | | 408 | | | | | | 426 | | |
Total | | | | $ | 224 | | | | | $ | 236 | | | | | $ | 259 | | | | | $ | 265 | | | | | $ | 316 | | | | | $ | 325 | | | | | $ | 408 | | | | | $ | 426 | | |
Equity Securities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mutual Funds | | | | | 975 | | | | | | 975 | | | | | | 942 | | | | | | 942 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 975 | | | | | $ | 975 | | | | | $ | 942 | | | | | $ | 942 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
|
| | | One Year or Less | | | More than One Year Through Five Years | | | More than Five Years Through 10 Years | | | More than 10 Years | | | Total | | |||||||||||||||||||||||||||||||||||||||||||||||||||
At September 30, 2019 (Dollars in thousands) | | | Book Value | | | Weighted Average Yield | | | Book Value | | | Weighted Average Yield | | | Book Value | | | Weighted Average Yield | | | Book Value | | | Weighted Average Yield | | | Book Value | | | Fair Value | | | Weighted Average Yield | | |||||||||||||||||||||||||||||||||
Securities Available for Sale | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Government- sponsored agencies | | | | $ | — | | | | | | 0.00% | | | | | $ | 319 | | | | | | 2.96% | | | | | $ | 12,159 | | | | | | 3.16% | | | | | $ | 3,661 | | | | | | 3.71% | | | | | $ | 16,139 | | | | | $ | 16,024 | | | | | | 3.28% | | |
Mortgage-backed securities | | | | | — | | | | | | 0.00% | | | | | | — | | | | | | 0.00% | | | | | | 1,972 | | | | | | 1.57% | | | | | | 3,716 | | | | | | 2.11% | | | | | | 5,688 | | | | | | 5,628 | | | | | | 1.92% | | |
U.S. Agency obligations | | | | | — | | | | | | 0.00% | | | | | | 3,489 | | | | | | 2.65% | | | | | | 1,004 | | | | | | 2.66% | | | | | | | | | | | | — | | | | | | 4,493 | | | | | | 4,585 | | | | | | 2.65% | | |
Corporate bonds | | | | | — | | | | | | 0.00% | | | | | | 2,000 | | | | | | 3.48% | | | | | | — | | | | | | 0.00% | | | | | | — | | | | | | 0.00% | | | | | | 2,000 | | | | | | 1,999 | | | | | | 3.48% | | |
Total | | | | $ | — | | | | | | 0.00% | | | | | $ | 5,808 | | | | | | 2.95% | | | | | $ | 15,135 | | | | | | 2.92% | | | | | $ | 7,377 | | | | | | 2.91% | | | | | $ | 28,320 | | | | | $ | 28,236 | | | | | | 2.93% | | |
Securities Held to Maturity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mortgage-backed securities | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 224 | | | | | | — | | | | | | 224 | | | | | | 236 | | | | | | 3.74% | | |
Total | | | | $ | — | | | | | | 0.00% | | | | | $ | — | | | | | | 0.00% | | | | | $ | — | | | | | | 0.00% | | | | | $ | 224 | | | | | | 3.74% | | | | | $ | 224 | | | | | $ | 236 | | | | | | 3.74% | | |
Equity Securities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mutual Funds | | | | | 975 | | | | | | 2.34% | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 975 | | | | | | 975 | | | | | | 2.34% | | |
Total | | | | $ | 975 | | | | | | 2.34% | | | | | $ | — | | | | | | 0.00% | | | | | $ | — | | | | | | 0.00% | | | | | $ | — | | | | | | — | | | | | $ | 975 | | | | | $ | 975 | | | | | | 2.34% | | |
|
| | | | | | | | | | | | | | | December 31, | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | September 30, 2019 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Amount | | | Percent | | | Amount | | | Percent | | | Amount | | | Percent | | | Amount | | | Percent | | | Amount | | | Percent | | | Amount | | | Percent | | ||||||||||||||||||||||||||||||||||||
Commercial real estate | | | | $ | 262,761 | | | | | | 34.0% | | | | | $ | 191,930 | | | | | | 31.6% | | | | | $ | 156,720 | | | | | | 33.3% | | | | | $ | 116,208 | | | | | | 35.8% | | | | | $ | 84,679 | | | | | | 34.1% | | | | | $ | 63,638 | | | | | | 34.0% | | |
Owner Occupied | | | | | 106,918 | | | | | | — | | | | | | 98,610 | | | | | | — | | | | | | 71,944 | | | | | | — | | | | | | 51,509 | | | | | | — | | | | | | 25,744 | | | | | | — | | | | | | 15,629 | | | | | | — | | |
Non-Owner Occupied | | | | | 155,843 | | | | | | — | | | | | | 93,320 | | | | | | — | | | | | | 84,776 | | | | | | — | �� | | | | | 64,699 | | | | | | — | | | | | | 58,935 | | | | | | — | | | | | | 48,009 | | | | | | — | | |
Residential real estate | | | | | 349,306 | | | | | | 45.3% | | | | | | 311,404 | | | | | | 51.3% | | | | | | 224,246 | | | | | | 47.7% | | | | | | 140,160 | | | | | | 43.2% | | | | | | 110,870 | | | | | | 44.6% | | | | | | 90,040 | | | | | | 48.0% | | |
Commercial | | | | | 114,003 | | | | | | 14.8% | | | | | | 83,276 | | | | | | 13.7% | | | | | | 59,065 | | | | | | 12.6% | | | | | | 37,873 | | | | | | 11.7% | | | | | | 33,861 | | | | | | 13.6% | | | | | | 23,640 | | | | | | 12.6% | | |
Construction and development | | | | | 37,925 | | | | | | 4.9% | | | | | | 17,608 | | | | | | 2.9% | | | | | | 28,272 | | | | | | 6.0% | | | | | | 29,036 | | | | | | 9.0% | | | | | | 18,813 | | | | | | 7.6% | | | | | | 9,427 | | | | | | 5.0% | | |
Consumer and other loans | | | | | 7,900 | | | | | | 1.0% | | | | | | 3,244 | | | | | | 0.5% | | | | | | 1,755 | | | | | | 0.4% | | | | | | 1,025 | | | | | | 0.3% | | | | | | 271 | | | | | | 0.1% | | | | | | 809 | | | | | | 0.4% | | |
Total loans | | | | $ | 771,895 | | | | | | 100.0% | | | | | $ | 607,462 | | | | | | 100.0% | | | | | $ | 470,058 | | | | | | 100.0% | | | | | $ | 324,302 | | | | | | 100.0% | | | | | $ | 248,494 | | | | | | 100.0% | | | | | $ | 187,554 | | | | | | 100.0% | | |
Unearned loan origination fees (costs), net | | | | | (783) | | | | | | | | | | | | (297) | | | | | | | | | | | | 64 | | | | | | | | | | | | (120) | | | | | | | | | | | | (11) | | | | | | | | | | | | 150 | | | | | | | | |
Allowance for loan losses | | | | | (6,449) | | | | | | | | | | | | (5,685) | | | | | | | | | | | | (4,535) | | | | | | | | | | | | (3,532) | | | | | | | | | | | | (2,457) | | | | | | | | | | | | (1,875) | | | | | | | | |
Loans, net | | | | $ | 764,663 | | | | | | | | | | | $ | 601,480 | | | | | | | | | | | $ | 465,587 | | | | | | | | | | | $ | 320,650 | | | | | | | | | | | $ | 246,026 | | | | | | | | | | | $ | 185,829 | | | | | | | | |
|
| | | As of September 30, 2019 | | |||||||||
(Dollars in thousands) | | | Amount | | | Percent | | ||||||
CRE and Construction & Development Loans, combined | | | | | | | | | | | | | |
1 – 4 Family Construction | | | | $ | 17,668 | | | | | | 5.9% | | |
Assignment of Mortgage | | | | | 9,085 | | | | | | 3.0% | | |
Auto (Car Lot/Auto Repair) | | | | | 14,518 | | | | | | 4.8% | | |
Commercial Construction | | | | | 8,746 | | | | | | 2.9% | | |
Educational Facility | | | | | 15,095 | | | | | | 5.0% | | |
Hotel | | | | | 6,702 | | | | | | 2.2% | | |
Land Development | | | | | 5,612 | | | | | | 1.9% | | |
Mixed Use | | | | | 18,431 | | | | | | 6.1% | | |
Multifamily | | | | | 22,118 | | | | | | 7.4% | | |
Office | | | | | 37,483 | | | | | | 12.5% | | |
Other / Special Use | | | | | 31,211 | | | | | | 10.4% | | |
Religious Facility | | | | | 4,700 | | | | | | 1.6% | | |
Retail | | | | | 52,672 | | | | | | 17.5% | | |
Vacant Land | | | | | 6,042 | | | | | | 2.0% | | |
Warehouse | | | | | 50,603 | | | | | | 16.8% | | |
Total | | | | $ | 300,686 | | | | | | 100.0% | | |
|
| | | As of September 30, 2019 | | |||||||||
(Dollars in thousands) | | | Amount | | | Percent | | ||||||
CRE and Construction & Development Loans, combined | | | | | | | | | | | | | |
Broward | | | | $ | 54,099 | | | | | | 18.0% | | |
Miami-Dade | | | | | 156,075 | | | | | | 51.9% | | |
Palm Beach | | | | | 59,823 | | | | | | 19.9% | | |
Other FL County | | | | | 27,430 | | | | | | 9.1% | | |
Out of State | | | | | 3,259 | | | | | | 1.1% | | |
Total | | | | $ | 300,686 | | | | | | 100.0% | | |
| | As of September 30, 2019 | | | As of September 30, 2019 | | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | | Amount | | Percent | | LTV (%) | | | Amount | | Percent | | LTV (%) | | ||||||||||||||||||||||||
Residential Real Estate | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Primary Residences | | | $ | 253,102 | | | | | 72.4% | | | | | 58.3% | | | | | $ | 252,001 | | | | | 72.1% | | | | | 58.3% | | | ||||||
Investor Owned Residences | | | | 71,498 | | | | | 20.5% | | | | | 47.5% | | | | | | 71,344 | | | | | 20.4% | | | | | 47.5% | | | ||||||
HELOC | | | | 23,374 | | | | | 6.7% | | | | | 49.1% | | | | | | 24,628 | | | | | 7.1% | | | | | 49.3% | | | ||||||
Loans Held for Sale | | | | 1,332 | | | | | 0.4% | | | | | 0.0% | | | | | | 1,333 | | | | | 0.4% | | | | | 0.0% | | | ||||||
Total | | | $ | 349,306 | | | | | 100.0% | | | | | | | | | | $ | 349,306 | | | | | 100.0% | | | | | | | |
| | | As of September 30, 2019 | | |||||||||
(Dollars in thousands) | | | Amount | | | Percent | | ||||||
Commercial Loans | | | | | | | | | | | | | |
Business Products | | | | $ | 1,150 | | | | | | 1.0% | | |
Business Services | | | | | 12,692 | | | | | | 11.1% | | |
Communication | | | | | 10,645 | | | | | | 9.3% | | |
Construction | | | | | 11,332 | | | | | | 10.0% | | |
Finance | | | | | 29,783 | | | | | | 26.1% | | |
Healthcare | | | | | 4,041 | | | | | | 3.5% | | |
Services | | | | | 12,436 | | | | | | 10.9% | | |
Technology | | | | | 780 | | | | | | 0.7% | | |
Trade | | | | | 30,871 | | | | | | 27.1% | | |
Transportation | | | | | 173 | | | | | | 0.2% | | |
Utilities | | | | | 100 | | | | | | 0.1% | | |
Total | | | | $ | 114,003 | | | | | | 100.0% | | |
| | | September 30, 2019 | | |||||||||||||||||||||
(Dollars in thousands) | | | Due in One Year or Less | | | Due in One to Five Years | | | Due After Five Years | | | Total | | ||||||||||||
Commercial Real Estate | | | | $ | 20,870 | | | | | $ | 48,105 | | | | | $ | 193,786 | | | | | $ | 262,761 | | |
Residential Real Estate | | | | | 38,638 | | | | | | 39,422 | | | | | | 271,246 | | | | | | 349,306 | | |
Commercial | | | | | 59,554 | | | | | | 19,141 | | | | | | 35,308 | | | | | | 114,003 | | |
Construction and Development | | | | | 18,481 | | | | | | 4,680 | | | | | | 14,764 | | | | | | 37,925 | | |
Consumer and Other | | | | | 3,964 | | | | | | 2,223 | | | | | | 1,713 | | | | | | 7,900 | | |
Total loans | | | | $ | 141,507 | | | | | $ | 113,571 | | | | | $ | 516,817 | | | | | $ | 771,895 | | |
Amounts with fixed rates | | | | $ | 67,826 | | | | | $ | 93,612 | | | | | $ | 488,877 | | | | | $ | 650,315 | | |
Amounts with floating rates | | | | $ | 73,681 | | | | | $ | 19,959 | | | | | $ | 27,940 | | | | | $ | 121,580 | | |
| | | | | | | | | December 31, | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | September 30, 2019 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | | ||||||||||||||||||
Accruing loans 90 or more days past due | | | | $ | 3,174 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Nonaccrual Loans | | | | | | | | ||||||||||||||||||||||||||||||
Commercial real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Residential real estate | | | | | 487 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial | | | | | 1,069 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 33 | | |
Construction and development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer and other loans | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total nonperforming loans | | | | $ | 4,730 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 33 | | |
Other real estate owned | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total nonperforming assets | | | | $ | 4,730 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 33 | | |
Restructured loans-nonaccrual | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 33 | | |
Restructured loans-accruing | | | | $ | 376 | | | | | $ | 357 | | | | | $ | 409 | | | | | $ | 478 | | | | | $ | 493 | | | | | $ | 606 | | |
Ratio of nonperforming loans to total loans | | | | | 0.62% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.02% | | |
Ratio of nonperforming assets to total assets | | | | | 0.49% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.02% | | |
(Dollars in thousands) | | | Pass | | | Special Mention | | | Substandard | | | Doubtful | | | Total | | |||||||||||||||
September 30, 2019 | | | | | | | |||||||||||||||||||||||||
Commercial real estate | | | | $ | 258,569 | | | | | $ | 1,746 | | | | | $ | 2,446 | | | | | $ | — | | | | | $ | 262,761 | | |
Residential real estate | | | | | 348,549 | | | | | | 757 | | | | | | — | | | | | | — | | | | | | 349,306 | | |
Commercial | | | | | 111,774 | | | | | | 432 | | | | | | 1,797 | | | | | | — | | | | | | 114,003 | | |
Construction and development | | | | | 37,925 | | | | | | — | | | | | | — | | | | | | — | | | | | | 37,925 | | |
Consumer | | | | | 7,900 | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,900 | | |
Total | | | | $ | 764,717 | | | | | $ | 2,935 | | | | | $ | 4,243 | | | | | $ | — | | | | | $ | 771,895 | | |
December 31, 2018 | | | | | | | |||||||||||||||||||||||||
Commercial real estate | | | | $ | 189,228 | | | | | $ | 2,702 | | | | | $ | — | | | | | $ | — | | | | | $ | 191,930 | | |
Residential real estate | | | | | 311,013 | | | | | | 391 | | | | | | — | | | | | | — | | | | | | 311,404 | | |
Commercial | | | | | 82,668 | | | | | | 577 | | | | | | 31 | | | | | | — | | | | | | 83,276 | | |
Construction and development | | | | | 17,608 | | | | | | — | | | | | | — | | | | | | — | | | | | | 17,608 | | |
Consumer | | | | | 3,244 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,244 | | |
Total | | | | $ | 603,761 | | | | | $ | 3,670 | | | | | $ | 31 | | | | | $ | — | | | | | $ | 607,462 | | |
December 31, 2017 | | | | | | | |||||||||||||||||||||||||
Commercial real estate | | | | $ | 155,671 | | | | | $ | 1,049 | | | | | $ | — | | | | | $ | — | | | | | $ | 156,720 | | |
Residential real estate | | | | | 224,246 | | | | | | — | | | | | | — | | | | | | — | | | | | | 224,246 | | |
Commercial | | | | | 58,936 | | | | | | 98 | | | | | | 31 | | | | | | — | | | | | | 59,065 | | |
Construction and development | | | | | 28,272 | | | | | | — | | | | | | — | | | | | | — | | | | | | 28,272 | | |
Consumer | | | | | 1,755 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,755 | | |
Total | | | | $ | 468,880 | | | | | $ | 1,147 | | | | | $ | 31 | | | | | $ | — | | | | | $ | 470,058 | | |
December 31, 2016 | | | | | | | |||||||||||||||||||||||||
Commercial real estate | | | | $ | 116,208 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 116,208 | | |
Residential real estate | | | | | 139,931 | | | | | | 229 | | | | | | — | | | | | | — | | | | | | 140,160 | | |
Commercial | | | | | 37,525 | | | | | | 280 | | | | | | 68 | | | | | | — | | | | | | 37,873 | | |
Construction and development | | | | | 29,036 | | | | | | — | | | | | | — | | | | | | — | | | | | | 29,036 | | |
Consumer | | | | | 1,025 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,025 | | |
Total | | | | $ | 323,725 | | | | | $ | 509 | | | | | $ | 68 | | | | | $ | — | | | | | $ | 324,302 | | |
| | | Nine Months Ended September 30, | | | Year Ended December 31, | | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | | |||||||||||||||||||||
Balance at beginning of period | | | | $ | 5,685 | | | | | $ | 4,535 | | | | | $ | 4,535 | | | | | $ | 3,532 | | | | | $ | 2,457 | | | | | $ | 1,875 | | | | | $ | 1,547 | | |
Charge-offs | | | | | | | | | |||||||||||||||||||||||||||||||||||
Commercial real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Construction and development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer and other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 14 | | | | | | — | | |
Total Charge-offs | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 14 | | | | | | — | | |
Recoveries | | | | | | | | | |||||||||||||||||||||||||||||||||||
Commercial real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial | | | | | — | | | | | | — | | | | | | — | | | | | | 12 | | | | | | 11 | | | | | | 2 | | | | | | — | | |
Construction and development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer and other | | | | | 2 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total recoveries | | | | | 2 | | | | | | — | | | | | | — | | | | | | 12 | | | | | | 11 | | | | | | 2 | | | | | | — | | |
Net charge-offs (recoveries) | | | | | (2) | | | | | | — | | | | | | — | | | | | | (12) | | | | | | (11) | | | | | | 12 | | | | | | — | | |
Provision for loan losses | | | | | 762 | | | | | | 790 | | | | | | 1,150 | | | | | | 991 | | | | | | 1,065 | | | | | | 596 | | | | | | 328 | | |
Balance at end of period | | | | $ | 6,449 | | | | | $ | 5,325 | | | | | $ | 5,685 | | | | | $ | 4,535 | | | | | $ | 3,532 | | | | | $ | 2,457 | | | | | $ | 1,875 | | |
Ratio of net charge-offs to average loans | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.01% | | | | | | 0.00% | | |
|
| | | Nine Months Ended September 30, | | | Year Ended December 31, | | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | | |||||||||||||||||||||
ALLL as a percentage of loans at end of period | | | | | 0.84% | | | | | | 0.90% | | | | | | 0.94% | | | | | | 0.96% | | | | | | 1.09% | | | | | | 0.99% | | | | | | 1.00% | | |
ALLL as a multiple of net charge-offs | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | 206.9% | | | | | | N/A | | |
ALLL as a percentage of nonperforming loans | | | | | 136.3% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
|
| | | September 30, 2019 | | | December 31, 2018 | | | December 31, 2017 | | | December 31, 2016 | | | December 31, 2015 | | | December 31, 2014 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Allowance | | | Percent | | | Allowance | | | Percent | | | Allowance | | | Percent | | | Allowance | | | Percent | | | Allowance | | | Percent | | | Allowance | | | Percent | | ||||||||||||||||||||||||||||||||||||
Commercial real estate | | | | $ | 1,788 | | | | | | 27.7% | | | | | $ | 1,435 | | | | | | 25.2% | | | | | $ | 1,275 | | | | | | 28.1% | | | | | $ | 838 | | | | | | 23.7% | | | | | $ | 730 | | | | | | 29.7% | | | | | $ | 346 | | | | | | 18.5% | | |
Residential real estate | | | | | 3,292 | | | | | | 51.0% | | | | | | 1,822 | | | | | | 32.0% | | | | | | 1,590 | | | | | | 35.0% | | | | | | 1,281 | | | | | | 36.3% | | | | | | 912 | | | | | | 37.2% | | | | | | 1,075 | | | | | | 57.3% | | |
Commercial | | | | | 1,036 | | | | | | 16.1% | | | | | | 2,106 | | | | | | 37.1% | | | | | | 1,170 | | | | | | 25.8% | | | | | | 648 | | | | | | 18.3% | | | | | | 534 | | | | | | 21.7% | | | | | | 318 | | | | | | 17.0% | | |
Construction and development | | | | | 255 | | | | | | 4.0% | | | | | | 262 | | | | | | 4.6% | | | | | | 452 | | | | | | 10.0% | | | | | | 742 | | | | | | 21.0% | | | | | | 266 | | | | | | 10.8% | | | | | | 109 | | | | | | 5.8% | | |
Consumer and other | | | | | 78 | | | | | | 1.2% | | | | | | 60 | | | | | | 1.1% | | | | | | 48 | | | | | | 1.1% | | | | | | 23 | | | | | | 0.7% | | | | | | 15 | | | | | | 0.6% | | | | | | 27 | | | | | | 1.4% | | |
Total allowance for loan losses | | | | $ | 6,449 | | | | | | 100.0% | | | | | $ | 5,685 | | | | | | 100.0% | | | | | $ | 4,535 | | | | | | 100.0% | | | | | $ | 3,532 | | | | | | 100.0% | | | | | $ | 2,457 | | | | | | 100.0% | | | | | $ | 1,875 | | | | | | 100.0% | | |
|
| | | For the Nine Months Ended September 30, 2019 | | | For the Year Ended December 31 | | | | For the Nine Months Ended September 30, 2019 | | | For the Year Ended December 31 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | 2018 | | 2017 | | 2016 | | | 2018 | | 2017 | | 2016 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | Average Balance | | Average Rate | | Average Balance | | Average Rate | | Average Balance | | Average Rate | | Average Balance | | Average Rate | | | Average Balance | | Average Rate | | Average Balance | | Average Rate | | Average Balance | | Average Rate | | Average Balance | | Average Rate | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOW accounts | | | $ | 30,680 | | | | | 0.37% | | | | $ | 24,791 | | | | | 0.29% | | | | $ | 14,473 | | | | | 0.23% | | | | $ | 12,926 | | | | | 0.21% | | | | | $ | 30,680 | | | | | 0.37% | | | | $ | 24,791 | | | | | 0.29% | | | | $ | 14,473 | | | | | 0.23% | | | | $ | 12,926 | | | | | 0.21% | | | ||||||||||||||||
Money market accounts | | | | 407,669 | | | | | 1.76% | | | | | 304,772 | | | | | 1.18% | | | | | 198,513 | | | | | 0.80% | | | | | 137,005 | | | | | 0.65% | | | | | | 407,669 | | | | | 1.76% | | | | | 304,772 | | | | | 1.18% | | | | | 198,513 | | | | | 0.80% | | | | | 137,005 | | | | | 0.65% | | | ||||||||||||||||
Savings accounts | | | | 7,999 | | | | | 1.38% | | | | | 2,354 | | | | | 0.13% | | | | | 2,234 | | | | | 0.10% | | | | | 1,921 | | | | | 0.10% | | | | | | 7,999 | | | | | 1.38% | | ��� | | | | 2,354 | | | | | 0.13% | | | | | 2,234 | | | | | 0.10% | | | | | 1,921 | | | | | 0.10% | | | |||||||||||||||
Certificates of deposit | | | | 100,897 | | | | | 2.19% | | | | | 83,636 | | | | | 1.70% | | | | | 78,340 | | | | | 1.28% | | | | | 83,131 | | | | | 1.23% | | | | | | 100,897 | | | | | 2.19% | | | | | 83,636 | | | | | 1.70% | | | | | 78,340 | | | | | 1.28% | | | | | 83,131 | | | | | 1.23% | | | ||||||||||||||||
Total interest-bearing deposits | | | | 547,245 | | | | | 1.75% | | | | | 415,553 | | | | | 1.23% | | | | | 293,560 | | | | | 0.90% | | | | | 234,983 | | | | | 0.83% | | | | | | 547,245 | | | | | 1.75% | | | | | 415,553 | | | | | 1.23% | | | | | 293,560 | | | | | 0.90% | | | | | 234,983 | | | | | 0.83% | | | ||||||||||||||||
Noninterest-bearing deposits | | | | 163,513 | | | | | 0.00% | | | | | 127,659 | | | | | 0.00% | | | | | 91,230 | | | | | 0.00% | | | | | 68,142 | | | | | 0.00% | | | | | | 163,513 | | | | | 0.00% | | | | | 127,659 | | | | | 0.00% | | | | | 91,230 | | | | | 0.00% | | | | | 68,142 | | | | | 0.00% | | | ||||||||||||||||
Total deposits | | | $ | 710,758 | | | | | 1.35% | | | | $ | 543,212 | | | | | 0.94% | | | | $ | 384,790 | | | | | 0.68% | | | | $ | 303,125 | | | | | 0.64% | | | | | $ | 710,758 | | | | | 1.35% | | | | $ | 543,212 | | | | | 0.94% | | | | $ | 384,790 | | | | | 0.68% | | | | $ | 303,125 | | | | | 0.64% | | | |
| | | For the Nine Months Ended September 30, 2019 | | | For the Year Ended December 31 | | ||||||||||||||||||||||||||||||||||||||||||
| | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Ending Balance | | | % of Total | | | Ending Balance | | | % of Total | | | Ending Balance | | | % of Total | | | Ending Balance | | | % of Total | | ||||||||||||||||||||||||
NOW accounts | | | | $ | 37,297 | | | | | | 4.53% | | | | | $ | 25,088 | | | | | | 4.16% | | | | | $ | 19,515 | | | | | | 4.25% | | | | | $ | 12,087 | | | | | | 3.73% | | |
Money market accounts | | | | | 475,670 | | | | | | 57.79% | | | | | | 352,002 | | | | | | 58.35% | | | | | | 260,850 | | | | | | 56.81% | | | | | | 146,829 | | | | | | 45.33% | | |
Savings accounts | | | | | 10,188 | | | | | | 1.24% | | | | | | 2,389 | | | | | | 0.40% | | | | | | 2,660 | | | | | | 0.58% | | | | | | 2,343 | | | | | | 0.72% | | |
Certificates of deposit | | | | | 111,983 | | | | | | 13.61% | | | | | | 93,578 | | | | | | 15.51% | | | | | | 75,302 | | | | | | 16.40% | | | | | | 98,901 | | | | | | 30.53% | | |
Total interest-bearing deposits | | | | | 635,138 | | | | | | 77.17% | | | | | | 473,057 | | | | | | 78.41% | | | | | | 358,327 | | | | | | 78.04% | | | | | | 260,160 | | | | | | 80.32% | | |
Noninterest-bearing deposits | | | | | 187,927 | | | | | | 22.83% | | | | | | 130,245 | | | | | | 21.59% | | | | | | 100,847 | | | | | | 21.96% | | | | | | 63,762 | | | | | | 19.68% | | |
Total deposits | | | | $ | 823,065 | | | | | | 100.00% | | | | | $ | 603,302 | | | | | | 100.00% | | | | | $ | 459,174 | | | | | | 100.00% | | | | | $ | 323,922 | | | | | | 100.00% | | |
(Dollars in thousands) | | | Three Months or Less | | | Over Three Through Six Months | | | Over Six Months Through 12 Months | | | Over 12 Months | | | Total | | |||||||||||||||
$100,000 or more | | | | $ | 15,167 | | | | | $ | 18,503 | | | | | $ | 59,846 | | | | | $ | 11,116 | | | | | $ | 104,632 | | |
Less than $100,000 | | | | | 1,694 | | | | | | 1,544 | | | | | | 3,476 | | | | | | 637 | | | | | | 7,351 | | |
Total | | | | $ | 16,861 | | | | | $ | 20,047 | | | | | $ | 63,322 | | | | | $ | 11,753 | | | | | $ | 111,983 | | |
| | | Nine Months Ended September 30, 2019 | | | Years Ended December 31, | | ||||||||||||||||||
(Dollars in thousands) | | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||
Amount outstanding at period-end | | | | $ | 50,000 | | | | | $ | 40,000 | | | | | $ | 25,000 | | | | | $ | 20,000 | | |
Weighted average interest rate at period-end | | | | | 2.23% | | | | | | 2.27% | | | | | | 1.44% | | | | | | 1.02% | | |
Maximum month-end balance during period | | | | $ | 50,000 | | | | | $ | 40,000 | | | | | $ | 25,000 | | | | | $ | 20,000 | | |
Average balance outstanding during period | | | | | 45,055 | | | | | | 34,712 | | | | | | 17,479 | | | | | | 16,965 | | |
Weighted average interest rate during period | | | | | 2.33% | | | | | | 2.11% | | | | | | 1.34% | | | | | | 1.02% | | |
| | | Actual | | | Minimum for capital adequacy | | | Minimum to be well capitalized | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Amount | | | Ratio | | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||||||||
September 30, 2019 | | | | | | | | ||||||||||||||||||||||||||||||
Total risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | $ | 84,082 | | | | | | 12.4% | | | | | $ | 54,424 | | | | | | 8.0% | | | | | $ | 68,030 | | | | | | 10.0% | | |
Company | | | | | 85,091 | | | | | | 12.5% | | | | | | 54,424 | | | | | | 8.0% | | | | | | N/A | | | | | | N/A | | |
Tier 1 risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 77,026 | | | | | | 11.3% | | | | | | 40,818 | | | | | | 6.0% | | | | | | 54,424 | | | | | | 8.0% | | |
Company | | | | | 78,036 | | | | | | 11.5% | | | | | | 40,818 | | | | | | 6.0% | | | | | | N/A | | | | | | N/A | | |
| | | Actual | | | Minimum for capital adequacy | | | Minimum to be well capitalized | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Amount | | | Ratio | | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||||||||
Tier1 leverage ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 77,026 | | | | | | 8.3% | | | | | | 36,992 | | | | | | 4.0% | | | | | | 46,240 | | | | | | 5.0% | | |
Company | | | | | 78,036 | | | | | | 8.4% | | | | | | 36,992 | | | | | | 4.0% | | | | | | N/A | | | | | | N/A | | |
Common equity tier 1 capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 77,026 | | | | | | 11.3% | | | | | | 30,614 | | | | | | 4.5% | | | | | | 44,220 | | | | | | 6.5% | | |
Company | | | | | 78,036 | | | | | | 11.5% | | | | | | 30,614 | | | | | | 4.5% | | | | | | N/A | | | | | | N/A | | |
December 31, 2018 | | | | | | | | ||||||||||||||||||||||||||||||
Total risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | $ | 68,427 | | | | | | 13.4% | | | | | $ | 40,731 | | | | | | 8.0% | | | | | $ | 50,914 | | | | | | 10.0% | | |
Company | | | | | 86,014 | | | | | | 16.9% | | | | | | 40,731 | | | | | | 8.0% | | | | | | N/A | | | | | | N/A | | |
Tier 1 risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 62,519 | | | | | | 12.3% | | | | | | 30,549 | | | | | | 6.0% | | | | | | 40,731 | | | | | | 8.0% | | |
Company | | | | | 80,107 | | | | | | 15.7% | | | | | | 30,549 | | | | | | 6.0% | | | | | | N/A | | | | | | N/A | | |
Tier1 leverage ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 62,519 | | | | | | 8.6% | | | | | | 29,129 | | | | | | 4.0% | | | | | | 36,411 | | | | | | 5.0% | | |
Company | | | | | 80,107 | | | | | | 11.0% | | | | | | 29,129 | | | | | | 4.0% | | | | | | N/A | | | | | | N/A | | |
Common equity tier 1 capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 62,539 | | | | | | 12.3% | | | | | | 22,911 | | | | | | 4.5% | | | | | | 33,094 | | | | | | 6.5% | | |
Company | | | | | 80,107 | | | | | | 15.7% | | | | | | 22,911 | | | | | | 4.5% | | | | | | N/A | | | | | | N/A | | |
December 31, 2017 | | | | | | | | ||||||||||||||||||||||||||||||
Total risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | $ | 49,234 | | | | | | 12.0% | | | | | $ | 32,866 | | | | | | 8.0% | | | | | $ | 41,083 | | | | | | 10.0% | | |
Company | | | | | 62,649 | | | | | | 15.2% | | | | | | 32,866 | | | | | | 8.0% | | | | | | N/A | | | | | | N/A | | |
Tier 1 risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 44,476 | | | | | | 10.8% | | | | | | 24,650 | | | | | | 6.0% | | | | | | 32,866 | | | | | | 8.0% | | |
Company | | | | | 57,892 | | | | | | 14.1% | | | | | | 24,650 | | | | | | 6.0% | | | | | | N/A | | | | | | N/A | | |
Tier1 leverage ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 44,476 | | | | | | 8.7% | | | | | | 20,513 | | | | | | 4.0% | | | | | | 25,641 | | | | | | 5.0% | | |
Company | | | | | 57,892 | | | | | | 11.3% | | | | | | 20,513 | | | | | | 4.0% | | | | | | N/A | | | | | | N/A | | |
Common equity tier 1 capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 44,476 | | | | | | 10.8% | | | | | | 18,487 | | | | | | 4.5% | | | | | | 26,704 | | | | | | 6.5% | | |
Company | | | | | 57,892 | | | | | | 14.1% | | | | | | 18,487 | | | | | | 4.5% | | | | | | N/A | | | | | | N/A | | |
December 31, 2016 | | | | | | | | ||||||||||||||||||||||||||||||
Total risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | $ | 36,800 | | | | | | 12.0% | | | | | $ | 24,628 | | | | | | 8.0% | | | | | $ | 30,785 | | | | | | 10.0% | | |
Company | | | | | 40,766 | | | | | | 13.2% | | | | | | 24,628 | | | | | | 8.0% | | | | | | N/A | | | | | | N/A | | |
Tier 1 risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 33,045 | | | | | | 10.7% | | | | | | 18,471 | | | | | | 6.0% | | | | | | 24,628 | | | | | | 8.0% | | |
Company | | | | | 37,011 | | | | | | 12.0% | | | | | | 18,471 | | | | | | 6.0% | | | | | | N/A | | | | | | N/A | | |
| | | Actual | | | Minimum for capital adequacy | | | Minimum to be well capitalized | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Amount | | | Ratio | | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||||||||
Tier1 leverage ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 33,045 | | | | | | 8.8% | | | | | | 15,036 | | | | | | 4.0% | | | | | | 18,795 | | | | | | 5.0% | | |
Company | | | | | 37,011 | | | | | | 9.8% | | | | | | 15,036 | | | | | | 4.0% | | | | | | N/A | | | | | | N/A | | |
Common equity tier 1 capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 33,045 | | | | | | 10.7% | | | | | | 13,853 | | | | | | 4.5% | | | | | | 20,011 | | | | | | 6.5% | | |
Company | | | | | 37,011 | | | | | | 12.0% | | | | | | 13,853 | | | | | | 4.5% | | | | | | N/A | | | | | | N/A | | |
(Dollars in thousands) | | | Due in One Year or Less | | | Due after One Through Three Years | | | Due After Three Through Five Years | | | Due After Five Years | | | Total | | |||||||||||||||
FHLB Advances | | | | $ | 10,000 | | | | | $ | 20,000 | | | | | $ | 20,000 | | | | | $ | — | | | | | $ | 50,000 | | |
Certificates of deposit $100,000 or more | | | | | 93,516 | | | | | | 11,116 | | | | | | — | | | | | | — | | | | | | 104,632 | | |
Certificates of deposit less than $100,000 | | | | | 6,714 | | | | | | 637 | | | | | | — | | | | | | — | | | | | | 7,351 | | |
Operating leases | | | | | 1,060 | | | | | | 2,147 | | | | | | 2,138 | | | | | | 2,217 | | | | | | 7,562 | | |
Total | | | | $ | 111,290 | | | | | $ | 33,900 | | | | | $ | 22,138 | | | | | $ | 2,217 | | | | | $ | 169,545 | | |
| | | As of September 30, 2019 | | | As of December 31, | | ||||||||||||||||||
(Dollars in thousands) | | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||
Unfunded lines of credit | | | | $ | 184,360 | | | | | $ | 106,866 | | | | | $ | 75,791 | | | | | $ | 74,536 | | |
Commitments to extend credit | | | | | 22,604 | | | | | | 30,599 | | | | | | 42,809 | | | | | | 44,802 | | |
Letters of credit | | | | | 10,697 | | | | | | 10,417 | | | | | | 10,546 | | | | | | 6,870 | | |
Total credit extension commitments | | | | $ | 217,661 | | | | | $ | 147,882 | | | | | $ | 129,146 | | | | | $ | 126,208 | | |
| | | Nine Months Ended September 30, 2019 | | | Years Ended December 31, | | ||||||||||||||||||
| | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||
Return on Average Assets(1) | | | | | 0.21% | | | | | | 0.33% | | | | | | 0.39% | | | | | | 0.33% | | |
Return on Average Equity(1) | | | | | 2.25% | | | | | | 3.52% | | | | | | 3.30% | | | | | | 3.15% | | |
Average Equity to Average Assets | | | | | 9.44% | | | | | | 9.33% | | | | | | 11.95% | | | | | | 10.01% | | |
September 30, 2019 (Dollars in thousands) | | | Within One Month | | | After One Month Through Three Months | | | After Three Months Through 12 Months | | | Within One Year | | | Greater than One Year or Nonsensitive | | | Total | | ||||||||||||||||||
Assets | | | | | | | | ||||||||||||||||||||||||||||||
Interest earning assets | | | | | | | | ||||||||||||||||||||||||||||||
Loans(1) | | | | $ | 158,263 | | | | | $ | 28,574 | | | | | $ | 149,311 | | | | | $ | 336,148 | | | | | $ | 428,515 | | | | | $ | 764,663 | | |
Securities | | | | | 22,799 | | | | | | 2,182 | | | | | | 1,784 | | | | | | 26,765 | | | | | | 2,670 | | | | | | 29,435 | | |
Interest-bearing deposits at other financial institutions(2) | | | | | 90,010 | | | | | | — | | | | | | — | | | | | | 90,010 | | | | | | — | | | | | | 90,010 | | |
Federal funds sold | | | | | 26,398 | | | | | | — | | | | | | — | | | | | | 26,398 | | | | | | — | | | | | | 26,398 | | |
Total interest earning assets | | | | $ | 297,470 | | | | | $ | 30,756 | | | | | $ | 151,095 | | | | | $ | 479,321 | | | | | $ | 431,185 | | | | | $ | 910,506 | | |
Liabilities | | | | | | | | ||||||||||||||||||||||||||||||
Interest-bearing liabilities | | | | | | | | ||||||||||||||||||||||||||||||
Interest-bearing deposits | | | | $ | 311,145 | | | | | $ | 9,214 | | | | | $ | 41,457 | | | | | $ | 361,816 | | | | | $ | 161,339 | | | | | $ | 523,155 | | |
Time deposits | | | | | 26,865 | | | | | | 9,552 | | | | | | 63,813 | | | | | | 100,230 | | | | | | 11,753 | | | | | | 111,983 | | |
Total interest-bearing deposits | | | | | 338,010 | | | | | | 18,766 | | | | | | 105,270 | | | | | | 462,046 | | | | | | 173,092 | | | | | | 635,138 | | |
Securities sold under agreements to repurchase | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
FHLB Advances | | | | | 12,496 | | | | | | 10,000 | | | | | | 7,504 | | | | | | 30,000 | | | | | | 20,000 | | | | | | 50,000 | | |
Other borrowed funds | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total interest-bearing liabilities | | | | $ | 350,506 | | | | | $ | 28,766 | | | | | $ | 112,774 | | | | | $ | 492,046 | | | | | $ | 193,092 | | | | | $ | 685,138 | | |
Period gap | | | | $ | (53,036) | | | | | $ | 1,990 | | | | | $ | 38,321 | | | | | $ | (12,725) | | | | | $ | 238,093 | | | | | | | | |
Cumulative gap | | | | $ | (53,036) | | | | | $ | (51,046) | | | | | $ | (12,725) | | | | | $ | (12,725) | | | | | $ | 225,368 | | | | | | | | |
Ratio of cumulative gap to total earning assets | | | | | (17.83)% | | | | | | (165.97)% | | | | | | (8.42)% | | | | | | (2.65)% | | | | | | 52.27% | | | | | | | | |
Ratio of cumulative gap to cumulative total earning assets | | | | | (5.82)% | | | | | | (5.61)% | | | | | | (1.40)% | | | | | | (1.40)% | | | | | | 24.75% | | | | | | | | |
| | | Nine Months Ended September 30, | | | Year Ended December 31, | | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | | |||||||||||||||||||||
Balance at beginning of period | | | | $ | 5,685 | | | | | $ | 4,535 | | | | | $ | 4,535 | | | | | $ | 3,532 | | | | | $ | 2,457 | | | | | $ | 1,875 | | | | | $ | 1,547 | | |
Charge-offs | | | | | | | | | |||||||||||||||||||||||||||||||||||
Commercial real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Construction and development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer and other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 14 | | | | | | — | | |
Total Charge-offs | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 14 | | | | | | — | | |
Recoveries | | | | | | | | | |||||||||||||||||||||||||||||||||||
Commercial real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial | | | | | — | | | | | | — | | | | | | — | | | | | | 12 | | | | | | 11 | | | | | | 2 | | | | | | — | | |
Construction and development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer and other | | | | | 2 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total recoveries | | | | | 2 | | | | | | — | | | | | | — | | | | | | 12 | | | | | | 11 | | | | | | 2 | | | | | | — | | |
Net charge-offs (recoveries) | | | | | (2) | | | | | | — | | | | | | — | | | | | | (12) | | | | | | (11) | | | | | | 12 | | | | | | — | | |
Provision for loan losses | | | | | 762 | | | | | | 790 | | | | | | 1,150 | | | | | | 991 | | | | | | 1,065 | | | | | | 596 | | | | | | 328 | | |
Balance at end of period | | | | $ | 6,449 | | | | | $ | 5,325 | | | | | $ | 5,685 | | | | | $ | 4,535 | | | | | $ | 3,532 | | | | | $ | 2,457 | | | | | $ | 1,875 | | |
Ratio of net charge-offs to average loans | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.01% | | | | | | 0.00% | | |
|
| | | Nine Months Ended September 30, | | | Year Ended December 31, | | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | | |||||||||||||||||||||
ALLL as a percentage of loans at end of period | | | | | 0.84% | | | | | | 0.90% | | | | | | 0.94% | | | | | | 0.96% | | | | | | 1.09% | | | | | | 0.99% | | | | | | 1.00% | | |
ALLL as a multiple of net charge-offs | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | 206.9% | | | | | | N/A | | |
ALLL as a percentage of nonperforming loans | | | | | 136.3% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
|
| | | September 30, 2019 | | | December 31, 2018 | | | December 31, 2017 | | | December 31, 2016 | | | December 31, 2015 | | | December 31, 2014 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Allowance | | | Percent | | | Allowance | | | Percent | | | Allowance | | | Percent | | | Allowance | | | Percent | | | Allowance | | | Percent | | | Allowance | | | Percent | | ||||||||||||||||||||||||||||||||||||
Commercial real estate | | | | $ | 1,788 | | | | | | 27.7% | | | | | $ | 1,435 | | | | | | 25.2% | | | | | $ | 1,275 | | | | | | 28.1% | | | | | $ | 838 | | | | | | 23.7% | | | | | $ | 730 | | | | | | 29.7% | | | | | $ | 346 | | | | | | 18.5% | | |
Residential real estate | | | | | 3,292 | | | | | | 51.0% | | | | | | 1,822 | | | | | | 32.0% | | | | | | 1,590 | | | | | | 35.0% | | | | | | 1,281 | | | | | | 36.3% | | | | | | 912 | | | | | | 37.2% | | | | | | 1,075 | | | | | | 57.3% | | |
Commercial | | | | | 1,036 | | | | | | 16.1% | | | | | | 2,106 | | | | | | 37.1% | | | | | | 1,170 | | | | | | 25.8% | | | | | | 648 | | | | | | 18.3% | | | | | | 534 | | | | | | 21.7% | | | | | | 318 | | | | | | 17.0% | | |
Construction and development | | | | | 255 | | | | | | 4.0% | | | | | | 262 | | | | | | 4.6% | | | | | | 452 | | | | | | 10.0% | | | | | | 742 | | | | | | 21.0% | | | | | | 266 | | | | | | 10.8% | | | | | | 109 | | | | | | 5.8% | | |
Consumer and other | | | | | 78 | | | | | | 1.2% | | | | | | 60 | | | | | | 1.1% | | | | | | 48 | | | | | | 1.1% | | | | | | 23 | | | | | | 0.7% | | | | | | 15 | | | | | | 0.6% | | | | | | 27 | | | | | | 1.4% | | |
Total allowance for loan losses | | | | $ | 6,449 | | | | | | 100.0% | | | | | $ | 5,685 | | | | | | 100.0% | | | | | $ | 4,535 | | | | | | 100.0% | | | | | $ | 3,532 | | | | | | 100.0% | | | | | $ | 2,457 | | | | | | 100.0% | | | | | $ | 1,875 | | | | | | 100.0% | | |
|
| | | For the Nine Months Ended September 30, 2019 | | | For the Year Ended December 31 | | ||||||||||||||||||||||||||||||||||||||||||
| | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Average Balance | | | Average Rate | | | Average Balance | | | Average Rate | | | Average Balance | | | Average Rate | | | Average Balance | | | Average Rate | | ||||||||||||||||||||||||
NOW accounts | | | | $ | 30,680 | | | | | | 0.37% | | | | | $ | 24,791 | | | | | | 0.29% | | | | | $ | 14,473 | | | | | | 0.23% | | | | | $ | 12,926 | | | | | | 0.21% | | |
Money market accounts | | | | | 407,669 | | | | | | 1.76% | | | | | | 304,772 | | | | | | 1.18% | | | | | | 198,513 | | | | | | 0.80% | | | | | | 137,005 | | | | | | 0.65% | | |
Savings accounts | | | | | 7,999 | | | | | | 1.38% | | ��� | | | | 2,354 | | | | | | 0.13% | | | | | | 2,234 | | | | | | 0.10% | | | | | | 1,921 | | | | | | 0.10% | | |
Certificates of deposit | | | | | 100,897 | | | | | | 2.19% | | | | | | 83,636 | | | | | | 1.70% | | | | | | 78,340 | | | | | | 1.28% | | | | | | 83,131 | | | | | | 1.23% | | |
Total interest-bearing deposits | | | | | 547,245 | | | | | | 1.75% | | | | | | 415,553 | | | | | | 1.23% | | | | | | 293,560 | | | | | | 0.90% | | | | | | 234,983 | | | | | | 0.83% | | |
Noninterest-bearing deposits | | | | | 163,513 | | | | | | 0.00% | | | | | | 127,659 | | | | | | 0.00% | | | | | | 91,230 | | | | | | 0.00% | | | | | | 68,142 | | | | | | 0.00% | | |
Total deposits | | | | $ | 710,758 | | | | | | 1.35% | | | | | $ | 543,212 | | | | | | 0.94% | | | | | $ | 384,790 | | | | | | 0.68% | | | | | $ | 303,125 | | | | | | 0.64% | | |
|
| | | For the Nine Months Ended September 30, 2019 | | | For the Year Ended December 31 | | ||||||||||||||||||||||||||||||||||||||||||
| | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Ending Balance | | | % of Total | | | Ending Balance | | | % of Total | | | Ending Balance | | | % of Total | | | Ending Balance | | | % of Total | | ||||||||||||||||||||||||
NOW accounts | | | | $ | 37,297 | | | | | | 4.53% | | | | | $ | 25,088 | | | | | | 4.16% | | | | | $ | 19,515 | | | | | | 4.25% | | | | | $ | 12,087 | | | | | | 3.73% | | |
Money market accounts | | | | | 475,670 | | | | | | 57.79% | | | | | | 352,002 | | | | | | 58.35% | | | | | | 260,850 | | | | | | 56.81% | | | | | | 146,829 | | | | | | 45.33% | | |
Savings accounts | | | | | 10,188 | | | | | | 1.24% | | | | | | 2,389 | | | | | | 0.40% | | | | | | 2,660 | | | | | | 0.58% | | | | | | 2,343 | | | | | | 0.72% | | |
Certificates of deposit | | | | | 111,983 | | | | | | 13.61% | | | | | | 93,578 | | | | | | 15.51% | | | | | | 75,302 | | | | | | 16.40% | | | | | | 98,901 | | | | | | 30.53% | | |
Total interest-bearing deposits | | | | | 635,138 | | | | | | 77.17% | | | | | | 473,057 | | | | | | 78.41% | | | | | | 358,327 | | | | | | 78.04% | | | | | | 260,160 | | | | | | 80.32% | | |
Noninterest-bearing deposits | | | | | 187,927 | | | | | | 22.83% | | | | | | 130,245 | | | | | | 21.59% | | | | | | 100,847 | | | | | | 21.96% | | | | | | 63,762 | | | | | | 19.68% | | |
Total deposits | | | | $ | 823,065 | | | | | | 100.00% | | | | | $ | 603,302 | | | | | | 100.00% | | | | | $ | 459,174 | | | | | | 100.00% | | | | | $ | 323,922 | | | | | | 100.00% | | |
(Dollars in thousands) | | | Three Months or Less | | | Over Three Through Six Months | | | Over Six Months Through 12 Months | | | Over 12 Months | | | Total | | |||||||||||||||
$100,000 or more | | | | $ | 15,167 | | | | | $ | 18,503 | | | | | $ | 59,846 | | | | | $ | 11,116 | | | | | $ | 104,632 | | |
Less than $100,000 | | | | | 1,694 | | | | | | 1,544 | | | | | | 3,476 | | | | | | 637 | | | | | | 7,351 | | |
Total | | | | $ | 16,861 | | | | | $ | 20,047 | | | | | $ | 63,322 | | | | | $ | 11,753 | | | | | $ | 111,983 | | |
| | | Nine Months Ended September 30, 2019 | | | Years Ended December 31, | | ||||||||||||||||||
(Dollars in thousands) | | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||
Amount outstanding at period-end | | | | $ | 50,000 | | | | | $ | 40,000 | | | | | $ | 25,000 | | | | | $ | 20,000 | | |
Weighted average interest rate at period-end | | | | | 2.23% | | | | | | 2.27% | | | | | | 1.44% | | | | | | 1.02% | | |
Maximum month-end balance during period | | | | $ | 50,000 | | | | | $ | 40,000 | | | | | $ | 25,000 | | | | | $ | 20,000 | | |
Average balance outstanding during period | | | | | 45,055 | | | | | | 34,712 | | | | | | 17,479 | | | | | | 16,965 | | |
Weighted average interest rate during period | | | | | 2.33% | | | | | | 2.11% | | | | | | 1.34% | | | | | | 1.02% | | |
| | | Actual | | | Minimum for capital adequacy | | | Minimum to be well capitalized | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Amount | | | Ratio | | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||||||||
September 30, 2019 | | | | | | | | ||||||||||||||||||||||||||||||
Total risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | $ | 84,082 | | | | | | 12.4% | | | | | $ | 54,424 | | | | | | 8.0% | | | | | $ | 68,030 | | | | | | 10.0% | | |
Company | | | | | 85,091 | | | | | | 12.5% | | | | | | 54,424 | | | | | | 8.0% | | | | | | N/A | | | | | | N/A | | |
Tier 1 risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 77,026 | | | | | | 11.3% | | | | | | 40,818 | | | | | | 6.0% | | | | | | 54,424 | | | | | | 8.0% | | |
Company | | | | | 78,036 | | | | | | 11.5% | | | | | | 40,818 | | | | | | 6.0% | | | | | | N/A | | | | | | N/A | | |
| | | Actual | | | Minimum for capital adequacy | | | Minimum to be well capitalized | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Amount | | | Ratio | | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||||||||
Tier1 leverage ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 77,026 | | | | | | 8.3% | | | | | | 36,992 | | | | | | 4.0% | | | | | | 46,240 | | | | | | 5.0% | | |
Company | | | | | 78,036 | | | | | | 8.4% | | | | | | 36,992 | | | | | | 4.0% | | | | | | N/A | | | | | | N/A | | |
Common equity tier 1 capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 77,026 | | | | | | 11.3% | | | | | | 30,614 | | | | | | 4.5% | | | | | | 44,220 | | | | | | 6.5% | | |
Company | | | | | 78,036 | | | | | | 11.5% | | | | | | 30,614 | | | | | | 4.5% | | | | | | N/A | | | | | | N/A | | |
December 31, 2018 | | | | | | | | ||||||||||||||||||||||||||||||
Total risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | $ | 68,427 | | | | | | 13.4% | | | | | $ | 40,731 | | | | | | 8.0% | | | | | $ | 50,914 | | | | | | 10.0% | | |
Company | | | | | 86,014 | | | | | | 16.9% | | | | | | 40,731 | | | | | | 8.0% | | | | | | N/A | | | | | | N/A | | |
Tier 1 risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 62,519 | | | | | | 12.3% | | | | | | 30,549 | | | | | | 6.0% | | | | | | 40,731 | | | | | | 8.0% | | |
Company | | | | | 80,107 | | | | | | 15.7% | | | | | | 30,549 | | | | | | 6.0% | | | | | | N/A | | | | | | N/A | | |
Tier1 leverage ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 62,519 | | | | | | 8.6% | | | | | | 29,129 | | | | | | 4.0% | | | | | | 36,411 | | | | | | 5.0% | | |
Company | | | | | 80,107 | | | | | | 11.0% | | | | | | 29,129 | | | | | | 4.0% | | | | | | N/A | | | | | | N/A | | |
Common equity tier 1 capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 62,539 | | | | | | 12.3% | | | | | | 22,911 | | | | | | 4.5% | | | | | | 33,094 | | | | | | 6.5% | | |
Company | | | | | 80,107 | | | | | | 15.7% | | | | | | 22,911 | | | | | | 4.5% | | | | | | N/A | | | | | | N/A | | |
December 31, 2017 | | | | | | | | ||||||||||||||||||||||||||||||
Total risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | $ | 49,234 | | | | | | 12.0% | | | | | $ | 32,866 | | | | | | 8.0% | | | | | $ | 41,083 | | | | | | 10.0% | | |
Company | | | | | 62,649 | | | | | | 15.2% | | | | | | 32,866 | | | | | | 8.0% | | | | | | N/A | | | | | | N/A | | |
Tier 1 risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 44,476 | | | | | | 10.8% | | | | | | 24,650 | | | | | | 6.0% | | | | | | 32,866 | | | | | | 8.0% | | |
Company | | | | | 57,892 | | | | | | 14.1% | | | | | | 24,650 | | | | | | 6.0% | | | | | | N/A | | | | | | N/A | | |
Tier1 leverage ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 44,476 | | | | | | 8.7% | | | | | | 20,513 | | | | | | 4.0% | | | | | | 25,641 | | | | | | 5.0% | | |
Company | | | | | 57,892 | | | | | | 11.3% | | | | | | 20,513 | | | | | | 4.0% | | | | | | N/A | | | | | | N/A | | |
Common equity tier 1 capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 44,476 | | | | | | 10.8% | | | | | | 18,487 | | | | | | 4.5% | | | | | | 26,704 | | | | | | 6.5% | | |
Company | | | | | 57,892 | | | | | | 14.1% | | | | | | 18,487 | | | | | | 4.5% | | | | | | N/A | | | | | | N/A | | |
December 31, 2016 | | | | | | | | ||||||||||||||||||||||||||||||
Total risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | $ | 36,800 | | | | | | 12.0% | | | | | $ | 24,628 | | | | | | 8.0% | | | | | $ | 30,785 | | | | | | 10.0% | | |
Company | | | | | 40,766 | | | | | | 13.2% | | | | | | 24,628 | | | | | | 8.0% | | | | | | N/A | | | | | | N/A | | |
Tier 1 risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 33,045 | | | | | | 10.7% | | | | | | 18,471 | | | | | | 6.0% | | | | | | 24,628 | | | | | | 8.0% | | |
Company | | | | | 37,011 | | | | | | 12.0% | | | | | | 18,471 | | | | | | 6.0% | | | | | | N/A | | | | | | N/A | | |
| | | Actual | | | Minimum for capital adequacy | | | Minimum to be well capitalized | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Amount | | | Ratio | | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||||||||
Tier1 leverage ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 33,045 | | | | | | 8.8% | | | | | | 15,036 | | | | | | 4.0% | | | | | | 18,795 | | | | | | 5.0% | | |
Company | | | | | 37,011 | | | | | | 9.8% | | | | | | 15,036 | | | | | | 4.0% | | | | | | N/A | | | | | | N/A | | |
Common equity tier 1 capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 33,045 | | | | | | 10.7% | | | | | | 13,853 | | | | | | 4.5% | | | | | | 20,011 | | | | | | 6.5% | | |
Company | | | | | 37,011 | | | | | | 12.0% | | | | | | 13,853 | | | | | | 4.5% | | | | | | N/A | | | | | | N/A | | |
(Dollars in thousands) | | | Due in One Year or Less | | | Due after One Through Three Years | | | Due After Three Through Five Years | | | Due After Five Years | | | Total | | |||||||||||||||
FHLB Advances | | | | $ | 10,000 | | | | | $ | 20,000 | | | | | $ | 20,000 | | | | | $ | — | | | | | $ | 50,000 | | |
Certificates of deposit $100,000 or more | | | | | 93,516 | | | | | | 11,116 | | | | | | — | | | | | | — | | | | | | 104,632 | | |
Certificates of deposit less than $100,000 | | | | | 6,714 | | | | | | 637 | | | | | | — | | | | | | — | | | | | | 7,351 | | |
Operating leases | | | | | 1,060 | | | | | | 2,147 | | | | | | 2,138 | | | | | | 2,217 | | | | | | 7,562 | | |
Total | | | | $ | 111,290 | | | | | $ | 33,900 | | | | | $ | 22,138 | | | | | $ | 2,217 | | | | | $ | 169,545 | | |
| | | As of September 30, 2019 | | | As of December 31, | | ||||||||||||||||||
(Dollars in thousands) | | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||
Unfunded lines of credit | | | | $ | 184,360 | | | | | $ | 106,866 | | | | | $ | 75,791 | | | | | $ | 74,536 | | |
Commitments to extend credit | | | | | 22,604 | | | | | | 30,599 | | | | | | 42,809 | | | | | | 44,802 | | |
Letters of credit | | | | | 10,697 | | | | | | 10,417 | | | | | | 10,546 | | | | | | 6,870 | | |
Total credit extension commitments | | | | $ | 217,661 | | | | | $ | 147,882 | | | | | $ | 129,146 | | | | | $ | 126,208 | | |
| | | Nine Months Ended September 30, 2019 | | | Years Ended December 31, | | ||||||||||||||||||
| | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||
Return on Average Assets(1) | | | | | 0.21% | | | | | | 0.33% | | | | | | 0.39% | | | | | | 0.33% | | |
Return on Average Equity(1) | | | | | 2.25% | | | | | | 3.52% | | | | | | 3.30% | | | | | | 3.15% | | |
Average Equity to Average Assets | | | | | 9.44% | | | | | | 9.33% | | | | | | 11.95% | | | | | | 10.01% | | |
September 30, 2019 (Dollars in thousands) | | Within One Month | | After One Month Through Three Months | | After Three Months Through 12 Months | | Within One Year | | Greater than One Year or Nonsensitive | | Total | | | Within One Month | | After One Month Through Three Months | | After Three Months Through 12 Months | | Within One Year | | Greater than One Year or Nonsensitive | | Total | | ||||||||||||||||||||||||||||||||||||||||||||||||
Assets | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest earning assets | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans(1) | | | $ | 28,315 | | | | $ | 30,636 | | | | $ | 144,402 | | | | $ | 203,353 | | | | $ | 561,310 | | | | $ | 764,663 | | | | | $ | 158,263 | | | | $ | 28,574 | | | | $ | 149,311 | | | | $ | 336,148 | | | | $ | 428,515 | | | | $ | 764,663 | | | ||||||||||||
Securities | | | | 1,811 | | | | | 1,012 | | | | | 3,220 | | | | | 6,043 | | | | | 23,392 | | | | | 29,435 | | | | | | 22,799 | | | | | 2,182 | | | | | 1,784 | | | | | 26,765 | | | | | 2,670 | | | | | 29,435 | | | ||||||||||||
Interest-bearing deposits at other financial institutions (2) | | | | 90,010 | | | | | — | | | | | — | | | | | 90,010 | | | | | — | | | | | 90,010 | | | | | | 90,010 | | | | | — | | | | | — | | | | | 90,010 | | | | | — | | | | | 90,010 | | | ||||||||||||
Federal funds sold | | | | 26,398 | | | | | — | | | | | — | | | | | 26,398 | | | | | — | | | | | 26,398 | | | | | | 26,398 | | | | | — | | | | | — | | | | | 26,398 | | | | | — | | | | | 26,398 | | | ||||||||||||
Total interest earning assets | | | $ | 146,534 | | | | $ | 31,648 | | | | $ | 147,622 | | | | $ | 325,804 | | | | $ | 584,702 | | | | $ | 910,506 | | | | | $ | 297,470 | | | | $ | 30,756 | | | | $ | 151,095 | | | | $ | 479,321 | | | | $ | 431,185 | | | | $ | 910,506 | | | ||||||||||||
Liabilities | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | | | $ | 12,889 | | | | $ | 25,778 | | | | $ | 116,001 | | | | $ | 154,668 | | | | $ | 368,487 | | | | $ | 523,155 | | | | | $ | 311,145 | | | | $ | 9,214 | | | | $ | 41,457 | | | | $ | 361,816 | | | | $ | 161,339 | | | | $ | 523,155 | | | ||||||||||||
Time deposits | | | | 26,865 | | | | | 9,552 | | | | | 63,813 | | | | | 100,230 | | | | | 11,753 | | | | | 111,983 | | | | | | 26,865 | | | | | 9,552 | | | | | 63,813 | | | | | 100,230 | | | | | 11,753 | | | | | 111,983 | | | ||||||||||||
Total interest-bearing deposits | | | | 39,754 | | | | | 35,330 | | | | | 179,814 | | | | | 254,898 | | | | | 380,240 | | | | | 635,138 | | | | | | 338,010 | | | | | 18,766 | | | | | 105,270 | | | | | 462,046 | | | | | 173,092 | | | | | 635,138 | | | ||||||||||||
Securities sold under agreements to repurchase | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | ||||||||||||
FHLB Advances | | | | 3,263 | | | | | 11,525 | | | | | 14,434 | | | | | 29,222 | | | | | 20,778 | | | | | 50,000 | | | | | | 12,496 | | | | | 10,000 | | | | | 7,504 | | | | | 30,000 | | | | | 20,000 | | | | | 50,000 | | | ||||||||||||
Other borrowed funds | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | ||||||||||||
Total interest-bearing liabilities | | | $ | 43,017 | | | | $ | 46,855 | | | | $ | 194,248 | | | | $ | 284,120 | | | | $ | 401,018 | | | | $ | 685,138 | | | | | $ | 350,506 | | | | $ | 28,766 | | | | $ | 112,774 | | | | $ | 492,046 | | | | $ | 193,092 | | | | $ | 685,138 | | | ||||||||||||
Period gap | | | $ | 103,517 | | | | $ | (15,207) | | | | $ | (46,626) | | | | $ | 41,684 | | | | $ | 183,684 | | | | | | | | | | $ | (53,036) | | | | $ | 1,990 | | | | $ | 38,321 | | | | $ | (12,725) | | | | $ | 238,093 | | | | | | | | ||||||||||||
Cumulative gap | | | $ | 103,517 | | | | $ | 88,310 | | | | $ | 41,684 | | | | $ | 41,684 | | | | $ | 225,368 | | | | | | | | | | $ | (53,036) | | | | $ | (51,046) | | | | $ | (12,725) | | | | $ | (12,725) | | | | $ | 225,368 | | | | | | | | ||||||||||||
Ratio of cumulative gap to total earning assets | | | | 70.64% | | | | | 279.04% | | | | | 28.24% | | | | | 12.79% | | | | | 38.54% | | | | | | | | | | | (17.83)% | | | | | (165.97)% | | | | | (8.42)% | | | | | (2.65)% | | | | | 52.27% | | | | | | | | ||||||||||||
Ratio of cumulative gap to cumulative total earning assets | | | | (5.82)% | | | | | (5.61)% | | | | | (1.40)% | | | | | (1.40)% | | | | | 24.75% | | | | | | | |
Net Interest Income at Risk – 12 months | | | -400bps | | | -300bps | | | -200bps | | | -100bps | | | Flat | | | +100bps | | | +200bps | | | +300bps | | | +400bps | | |||||||||||||||||||||||||||
Policy Limit | | | | | (20.0)% | | | | | | (15.0)% | | | | | | (10.0)% | | | | | | (5.0)% | | | | | | N/A | | | | | | 10.0% | | | | | | 15.0% | | | | | | 20.0% | | | | | | 25.0% | | |
September 30, 2019 | | | | | 2.4% | | | | | | 4.6% | | | | | | 3.78% | | | | | | 1.0% | | | | | | N/A | | | | | | (0.7)% | | | | | | (1.4)% | | | | | | (2.1)% | | | | | | (3.1)% | | |
December 31, 2018 | | | | | (9.9)% | | | | | | (6.6)% | | | | | | (4.7)% | | | | | | (1.6)% | | | | | | N/A | | | | | | 0.6% | | | | | | 0.8% | | | | | | 1.0% | | | | | | 1.2% | | |
December 31, 2017 | | | | | (11.8)% | | | | | | (8.2)% | | | | | | (5.6)% | | | | | | (4.3)% | | | | | | N/A | | | | | | (3.6)% | | | | | | (7.0)% | | | | | | (10.5)% | | | | | | 13.9% | | |
Net Interest Income at Risk – 24 months | | | -400bps | | | -300bps | | | -200bps | | | -100bps | | | Flat | | | +100bps | | | +200bps | | | +300bps | | | +400bps | | |||||||||||||||||||||||||||
Policy Limit | | | | | (20.0)% | | | | | | (15.0)% | | | | | | (10.0)% | | | | | | (5.0)% | | | | | | N/A | | | | | | 10.0% | | | | | | 15.0% | | | | | | 20.0% | | | | | | 25.0% | | |
September 30, 2019 | | | | | (8.3)% | | | | | | (4.5)% | | | | | | (1.9)% | | | | | | (2.6)% | | | | | | N/A | | | | | | 2.1% | | | | | | 3.6% | | | | | | 4.8% | | | | | | 5.6% | | |
December 31, 2018 | | | | | (16.1)% | | | | | | (12.0)% | | | | | | (7.7)% | | | | | | (2.7)% | | | | | | N/A | | | | | | 1.3% | | | | | | 2.3% | | | | | | 3.1% | | | | | | 3.7% | | |
December 31, 2017 | | | | | (18.4)% | | | | | | (13.7)% | | | | | | (10.2)% | | | | | | (6.2)% | | | | | | N/A | | | | | | 5.0% | | | | | | 9.8% | | | | | | 14.7% | | | | | | 19.6% | | |
Economic Value of Equity as of | | | -400bps | | | -300bps | | | -200bps | | | -100bps | | | Flat | | | +100bps | | | +200bps | | | +300bps | | | +400bps | | |||||||||||||||||||||||||||
Policy Limit | | | | | (30.0)% | | | | | | (20.0)% | | | | | | (15.0)% | | | | | | (10.0)% | | | | | | N/A | | | | | | 17.5% | | | | | | 22.5% | | | | | | 27.5% | | | | | | 37.5% | | |
September 30, 2019 | | | | | 5.8% | | | | | | 6.8% | | | | | | 6.9% | | | | | | 3.5% | | | | | | N/A | | | | | | (3.9)% | | | | | | (9.5)% | | | | | | (15.4)% | | | | | | (21.9)% | | |
December 31, 2018 | | | | | (5.3)% | | | | | | (0.4)% | | | | | | 0.7% | | | | | | 0.6% | | | | | | N/A | | | | | | (3.7)% | | | | | | (8.2)% | | | | | | (13.2)% | | | | | | (19.0)% | | |
December 31, 2017 | | | | | (4.2)% | | | | | | (0.7)% | | | | | | 1.8% | | | | | | (0.5)% | | | | | | N/A | | | | | | (2.6)% | | | | | | (5.0)% | | | | | | (7.2)% | | | | | | (9.7)% | | |
| | | Nine Months Ended September 30, | | | Year Ended December 31, | | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | | |||||||||||||||||||||
Balance at beginning of period | | | | $ | 5,685 | | | | | $ | 4,535 | | | | | $ | 4,535 | | | | | $ | 3,532 | | | | | $ | 2,457 | | | | | $ | 1,875 | | | | | $ | 1,547 | | |
Charge-offs | | | | | | | | | |||||||||||||||||||||||||||||||||||
Commercial real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Construction and development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer and other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 14 | | | | | | — | | |
Total Charge-offs | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 14 | | | | | | — | | |
Recoveries | | | | | | | | | |||||||||||||||||||||||||||||||||||
Commercial real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial | | | | | — | | | | | | — | | | | | | — | | | | | | 12 | | | | | | 11 | | | | | | 2 | | | | | | — | | |
Construction and development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer and other | | | | | 2 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total recoveries | | | | | 2 | | | | | | — | | | | | | — | | | | | | 12 | | | | | | 11 | | | | | | 2 | | | | | | — | | |
Net charge-offs (recoveries) | | | | | (2) | | | | | | — | | | | | | — | | | | | | (12) | | | | | | (11) | | | | | | 12 | | | | | | — | | |
Provision for loan losses | | | | | 762 | | | | | | 790 | | | | | | 1,150 | | | | | | 991 | | | | | | 1,065 | | | | | | 596 | | | | | | 328 | | |
Balance at end of period | | | | $ | 6,449 | | | | | $ | 5,325 | | | | | $ | 5,685 | | | | | $ | 4,535 | | | | | $ | 3,532 | | | | | $ | 2,457 | | | | | $ | 1,875 | | |
Ratio of net charge-offs to average loans | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.01% | | | | | | 0.00% | | |
|
| | | Nine Months Ended September 30, | | | Year Ended December 31, | | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | | |||||||||||||||||||||
ALLL as a percentage of loans at end of period | | | | | 0.84% | | | | | | 0.90% | | | | | | 0.94% | | | | | | 0.96% | | | | | | 1.09% | | | | | | 0.99% | | | | | | 1.00% | | |
ALLL as a multiple of net charge-offs | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | 206.9% | | | | | | N/A | | |
ALLL as a percentage of nonperforming loans | | | | | 136.3% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
|
| | | September 30, 2019 | | | December 31, 2018 | | | December 31, 2017 | | | December 31, 2016 | | | December 31, 2015 | | | December 31, 2014 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Allowance | | | Percent | | | Allowance | | | Percent | | | Allowance | | | Percent | | | Allowance | | | Percent | | | Allowance | | | Percent | | | Allowance | | | Percent | | ||||||||||||||||||||||||||||||||||||
Commercial real estate | | | | $ | 1,788 | | | | | | 27.7% | | | | | $ | 1,435 | | | | | | 25.2% | | | | | $ | 1,275 | | | | | | 28.1% | | | | | $ | 838 | | | | | | 23.7% | | | | | $ | 730 | | | | | | 29.7% | | | | | $ | 346 | | | | | | 18.5% | | |
Residential real estate | | | | | 3,292 | | | | | | 51.0% | | | | | | 1,822 | | | | | | 32.0% | | | | | | 1,590 | | | | | | 35.0% | | | | | | 1,281 | | | | | | 36.3% | | | | | | 912 | | | | | | 37.2% | | | | | | 1,075 | | | | | | 57.3% | | |
Commercial | | | | | 1,036 | | | | | | 16.1% | | | | | | 2,106 | | | | | | 37.1% | | | | | | 1,170 | | | | | | 25.8% | | | | | | 648 | | | | | | 18.3% | | | | | | 534 | | | | | | 21.7% | | | | | | 318 | | | | | | 17.0% | | |
Construction and development | | | | | 255 | | | | | | 4.0% | | | | | | 262 | | | | | | 4.6% | | | | | | 452 | | | | | | 10.0% | | | | | | 742 | | | | | | 21.0% | | | | | | 266 | | | | | | 10.8% | | | | | | 109 | | | | | | 5.8% | | |
Consumer and other | | | | | 78 | | | | | | 1.2% | | | | | | 60 | | | | | | 1.1% | | | | | | 48 | | | | | | 1.1% | | | | | | 23 | | | | | | 0.7% | | | | | | 15 | | | | | | 0.6% | | | | | | 27 | | | | | | 1.4% | | |
Total allowance for loan losses | | | | $ | 6,449 | | | | | | 100.0% | | | | | $ | 5,685 | | | | | | 100.0% | | | | | $ | 4,535 | | | | | | 100.0% | | | | | $ | 3,532 | | | | | | 100.0% | | | | | $ | 2,457 | | | | | | 100.0% | | | | | $ | 1,875 | | | | | | 100.0% | | |
|
| | | For the Nine Months Ended September 30, 2019 | | | For the Year Ended December 31 | | ||||||||||||||||||||||||||||||||||||||||||
| | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Average Balance | | | Average Rate | | | Average Balance | | | Average Rate | | | Average Balance | | | Average Rate | | | Average Balance | | | Average Rate | | ||||||||||||||||||||||||
NOW accounts | | | | $ | 30,680 | | | | | | 0.37% | | | | | $ | 24,791 | | | | | | 0.29% | | | | | $ | 14,473 | | | | | | 0.23% | | | | | $ | 12,926 | | | | | | 0.21% | | |
Money market accounts | | | | | 407,669 | | | | | | 1.76% | | | | | | 304,772 | | | | | | 1.18% | | | | | | 198,513 | | | | | | 0.80% | | | | | | 137,005 | | | | | | 0.65% | | |
Savings accounts | | | | | 7,999 | | | | | | 1.38% | | ��� | | | | 2,354 | | | | | | 0.13% | | | | | | 2,234 | | | | | | 0.10% | | | | | | 1,921 | | | | | | 0.10% | | |
Certificates of deposit | | | | | 100,897 | | | | | | 2.19% | | | | | | 83,636 | | | | | | 1.70% | | | | | | 78,340 | | | | | | 1.28% | | | | | | 83,131 | | | | | | 1.23% | | |
Total interest-bearing deposits | | | | | 547,245 | | | | | | 1.75% | | | | | | 415,553 | | | | | | 1.23% | | | | | | 293,560 | | | | | | 0.90% | | | | | | 234,983 | | | | | | 0.83% | | |
Noninterest-bearing deposits | | | | | 163,513 | | | | | | 0.00% | | | | | | 127,659 | | | | | | 0.00% | | | | | | 91,230 | | | | | | 0.00% | | | | | | 68,142 | | | | | | 0.00% | | |
Total deposits | | | | $ | 710,758 | | | | | | 1.35% | | | | | $ | 543,212 | | | | | | 0.94% | | | | | $ | 384,790 | | | | | | 0.68% | | | | | $ | 303,125 | | | | | | 0.64% | | |
|
| | | For the Nine Months Ended September 30, 2019 | | | For the Year Ended December 31 | | ||||||||||||||||||||||||||||||||||||||||||
| | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Ending Balance | | | % of Total | | | Ending Balance | | | % of Total | | | Ending Balance | | | % of Total | | | Ending Balance | | | % of Total | | ||||||||||||||||||||||||
NOW accounts | | | | $ | 37,297 | | | | | | 4.53% | | | | | $ | 25,088 | | | | | | 4.16% | | | | | $ | 19,515 | | | | | | 4.25% | | | | | $ | 12,087 | | | | | | 3.73% | | |
Money market accounts | | | | | 475,670 | | | | | | 57.79% | | | | | | 352,002 | | | | | | 58.35% | | | | | | 260,850 | | | | | | 56.81% | | | | | | 146,829 | | | | | | 45.33% | | |
Savings accounts | | | | | 10,188 | | | | | | 1.24% | | | | | | 2,389 | | | | | | 0.40% | | | | | | 2,660 | | | | | | 0.58% | | | | | | 2,343 | | | | | | 0.72% | | |
Certificates of deposit | | | | | 111,983 | | | | | | 13.61% | | | | | | 93,578 | | | | | | 15.51% | | | | | | 75,302 | | | | | | 16.40% | | | | | | 98,901 | | | | | | 30.53% | | |
Total interest-bearing deposits | | | | | 635,138 | | | | | | 77.17% | | | | | | 473,057 | | | | | | 78.41% | | | | | | 358,327 | | | | | | 78.04% | | | | | | 260,160 | | | | | | 80.32% | | |
Noninterest-bearing deposits | | | | | 187,927 | | | | | | 22.83% | | | | | | 130,245 | | | | | | 21.59% | | | | | | 100,847 | | | | | | 21.96% | | | | | | 63,762 | | | | | | 19.68% | | |
Total deposits | | | | $ | 823,065 | | | | | | 100.00% | | | | | $ | 603,302 | | | | | | 100.00% | | | | | $ | 459,174 | | | | | | 100.00% | | | | | $ | 323,922 | | | | | | 100.00% | | |
(Dollars in thousands) | | | Three Months or Less | | | Over Three Through Six Months | | | Over Six Months Through 12 Months | | | Over 12 Months | | | Total | | |||||||||||||||
$100,000 or more | | | | $ | 15,167 | | | | | $ | 18,503 | | | | | $ | 59,846 | | | | | $ | 11,116 | | | | | $ | 104,632 | | |
Less than $100,000 | | | | | 1,694 | | | | | | 1,544 | | | | | | 3,476 | | | | | | 637 | | | | | | 7,351 | | |
Total | | | | $ | 16,861 | | | | | $ | 20,047 | | | | | $ | 63,322 | | | | | $ | 11,753 | | | | | $ | 111,983 | | |
| | | Nine Months Ended September 30, 2019 | | | Years Ended December 31, | | ||||||||||||||||||
(Dollars in thousands) | | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||
Amount outstanding at period-end | | | | $ | 50,000 | | | | | $ | 40,000 | | | | | $ | 25,000 | | | | | $ | 20,000 | | |
Weighted average interest rate at period-end | | | | | 2.23% | | | | | | 2.27% | | | | | | 1.44% | | | | | | 1.02% | | |
Maximum month-end balance during period | | | | $ | 50,000 | | | | | $ | 40,000 | | | | | $ | 25,000 | | | | | $ | 20,000 | | |
Average balance outstanding during period | | | | | 45,055 | | | | | | 34,712 | | | | | | 17,479 | | | | | | 16,965 | | |
Weighted average interest rate during period | | | | | 2.33% | | | | | | 2.11% | | | | | | 1.34% | | | | | | 1.02% | | |
| | | Actual | | | Minimum for capital adequacy | | | Minimum to be well capitalized | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Amount | | | Ratio | | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||||||||
September 30, 2019 | | | | | | | | ||||||||||||||||||||||||||||||
Total risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | $ | 84,082 | | | | | | 12.4% | | | | | $ | 54,424 | | | | | | 8.0% | | | | | $ | 68,030 | | | | | | 10.0% | | |
Company | | | | | 85,091 | | | | | | 12.5% | | | | | | 54,424 | | | | | | 8.0% | | | | | | N/A | | | | | | N/A | | |
Tier 1 risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 77,026 | | | | | | 11.3% | | | | | | 40,818 | | | | | | 6.0% | | | | | | 54,424 | | | | | | 8.0% | | |
Company | | | | | 78,036 | | | | | | 11.5% | | | | | | 40,818 | | | | | | 6.0% | | | | | | N/A | | | | | | N/A | | |
| | | Actual | | | Minimum for capital adequacy | | | Minimum to be well capitalized | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Amount | | | Ratio | | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||||||||
Tier1 leverage ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 77,026 | | | | | | 8.3% | | | | | | 36,992 | | | | | | 4.0% | | | | | | 46,240 | | | | | | 5.0% | | |
Company | | | | | 78,036 | | | | | | 8.4% | | | | | | 36,992 | | | | | | 4.0% | | | | | | N/A | | | | | | N/A | | |
Common equity tier 1 capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 77,026 | | | | | | 11.3% | | | | | | 30,614 | | | | | | 4.5% | | | | | | 44,220 | | | | | | 6.5% | | |
Company | | | | | 78,036 | | | | | | 11.5% | | | | | | 30,614 | | | | | | 4.5% | | | | | | N/A | | | | | | N/A | | |
December 31, 2018 | | | | | | | | ||||||||||||||||||||||||||||||
Total risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | $ | 68,427 | | | | | | 13.4% | | | | | $ | 40,731 | | | | | | 8.0% | | | | | $ | 50,914 | | | | | | 10.0% | | |
Company | | | | | 86,014 | | | | | | 16.9% | | | | | | 40,731 | | | | | | 8.0% | | | | | | N/A | | | | | | N/A | | |
Tier 1 risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 62,519 | | | | | | 12.3% | | | | | | 30,549 | | | | | | 6.0% | | | | | | 40,731 | | | | | | 8.0% | | |
Company | | | | | 80,107 | | | | | | 15.7% | | | | | | 30,549 | | | | | | 6.0% | | | | | | N/A | | | | | | N/A | | |
Tier1 leverage ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 62,519 | | | | | | 8.6% | | | | | | 29,129 | | | | | | 4.0% | | | | | | 36,411 | | | | | | 5.0% | | |
Company | | | | | 80,107 | | | | | | 11.0% | | | | | | 29,129 | | | | | | 4.0% | | | | | | N/A | | | | | | N/A | | |
Common equity tier 1 capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 62,539 | | | | | | 12.3% | | | | | | 22,911 | | | | | | 4.5% | | | | | | 33,094 | | | | | | 6.5% | | |
Company | | | | | 80,107 | | | | | | 15.7% | | | | | | 22,911 | | | | | | 4.5% | | | | | | N/A | | | | | | N/A | | |
December 31, 2017 | | | | | | | | ||||||||||||||||||||||||||||||
Total risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | $ | 49,234 | | | | | | 12.0% | | | | | $ | 32,866 | | | | | | 8.0% | | | | | $ | 41,083 | | | | | | 10.0% | | |
Company | | | | | 62,649 | | | | | | 15.2% | | | | | | 32,866 | | | | | | 8.0% | | | | | | N/A | | | | | | N/A | | |
Tier 1 risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 44,476 | | | | | | 10.8% | | | | | | 24,650 | | | | | | 6.0% | | | | | | 32,866 | | | | | | 8.0% | | |
Company | | | | | 57,892 | | | | | | 14.1% | | | | | | 24,650 | | | | | | 6.0% | | | | | | N/A | | | | | | N/A | | |
Tier1 leverage ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 44,476 | | | | | | 8.7% | | | | | | 20,513 | | | | | | 4.0% | | | | | | 25,641 | | | | | | 5.0% | | |
Company | | | | | 57,892 | | | | | | 11.3% | | | | | | 20,513 | | | | | | 4.0% | | | | | | N/A | | | | | | N/A | | |
Common equity tier 1 capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 44,476 | | | | | | 10.8% | | | | | | 18,487 | | | | | | 4.5% | | | | | | 26,704 | | | | | | 6.5% | | |
Company | | | | | 57,892 | | | | | | 14.1% | | | | | | 18,487 | | | | | | 4.5% | | | | | | N/A | | | | | | N/A | | |
December 31, 2016 | | | | | | | | ||||||||||||||||||||||||||||||
Total risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | $ | 36,800 | | | | | | 12.0% | | | | | $ | 24,628 | | | | | | 8.0% | | | | | $ | 30,785 | | | | | | 10.0% | | |
Company | | | | | 40,766 | | | | | | 13.2% | | | | | | 24,628 | | | | | | 8.0% | | | | | | N/A | | | | | | N/A | | |
Tier 1 risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 33,045 | | | | | | 10.7% | | | | | | 18,471 | | | | | | 6.0% | | | | | | 24,628 | | | | | | 8.0% | | |
Company | | | | | 37,011 | | | | | | 12.0% | | | | | | 18,471 | | | | | | 6.0% | | | | | | N/A | | | | | | N/A | | |
| | | Actual | | | Minimum for capital adequacy | | | Minimum to be well capitalized | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Amount | | | Ratio | | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||||||||
Tier1 leverage ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 33,045 | | | | | | 8.8% | | | | | | 15,036 | | | | | | 4.0% | | | | | | 18,795 | | | | | | 5.0% | | |
Company | | | | | 37,011 | | | | | | 9.8% | | | | | | 15,036 | | | | | | 4.0% | | | | | | N/A | | | | | | N/A | | |
Common equity tier 1 capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 33,045 | | | | | | 10.7% | | | | | | 13,853 | | | | | | 4.5% | | | | | | 20,011 | | | | | | 6.5% | | |
Company | | | | | 37,011 | | | | | | 12.0% | | | | | | 13,853 | | | | | | 4.5% | | | | | | N/A | | | | | | N/A | | |
(Dollars in thousands) | | | Due in One Year or Less | | | Due after One Through Three Years | | | Due After Three Through Five Years | | | Due After Five Years | | | Total | | |||||||||||||||
FHLB Advances | | | | $ | 10,000 | | | | | $ | 20,000 | | | | | $ | 20,000 | | | | | $ | — | | | | | $ | 50,000 | | |
Certificates of deposit $100,000 or more | | | | | 93,516 | | | | | | 11,116 | | | | | | — | | | | | | — | | | | | | 104,632 | | |
Certificates of deposit less than $100,000 | | | | | 6,714 | | | | | | 637 | | | | | | — | | | | | | — | | | | | | 7,351 | | |
Operating leases | | | | | 1,060 | | | | | | 2,147 | | | | | | 2,138 | | | | | | 2,217 | | | | | | 7,562 | | |
Total | | | | $ | 111,290 | | | | | $ | 33,900 | | | | | $ | 22,138 | | | | | $ | 2,217 | | | | | $ | 169,545 | | |
| | | As of September 30, 2019 | | | As of December 31, | | ||||||||||||||||||
(Dollars in thousands) | | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||
Unfunded lines of credit | | | | $ | 184,360 | | | | | $ | 106,866 | | | | | $ | 75,791 | | | | | $ | 74,536 | | |
Commitments to extend credit | | | | | 22,604 | | | | | | 30,599 | | | | | | 42,809 | | | | | | 44,802 | | |
Letters of credit | | | | | 10,697 | | | | | | 10,417 | | | | | | 10,546 | | | | | | 6,870 | | |
Total credit extension commitments | | | | $ | 217,661 | | | | | $ | 147,882 | | | | | $ | 129,146 | | | | | $ | 126,208 | | |
| | | Nine Months Ended September 30, 2019 | | | Years Ended December 31, | | ||||||||||||||||||
| | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||
Return on Average Assets(1) | | | | | 0.21% | | | | | | 0.33% | | | | | | 0.39% | | | | | | 0.33% | | |
Return on Average Equity(1) | | | | | 2.25% | | | | | | 3.52% | | | | | | 3.30% | | | | | | 3.15% | | |
Average Equity to Average Assets | | | | | 9.44% | | | | | | 9.33% | | | | | | 11.95% | | | | | | 10.01% | | |
September 30, 2019 (Dollars in thousands) | | | Within One Month | | | After One Month Through Three Months | | | After Three Months Through 12 Months | | | Within One Year | | | Greater than One Year or Nonsensitive | | | Total | | ||||||||||||||||||
Assets | | | | | | | | ||||||||||||||||||||||||||||||
Interest earning assets | | | | | | | | ||||||||||||||||||||||||||||||
Loans(1) | | | | $ | 158,263 | | | | | $ | 28,574 | | | | | $ | 149,311 | | | | | $ | 336,148 | | | | | $ | 428,515 | | | | | $ | 764,663 | | |
Securities | | | | | 22,799 | | | | | | 2,182 | | | | | | 1,784 | | | | | | 26,765 | | | | | | 2,670 | | | | | | 29,435 | | |
Interest-bearing deposits at other financial institutions(2) | | | | | 90,010 | | | | | | — | | | | | | — | | | | | | 90,010 | | | | | | — | | | | | | 90,010 | | |
Federal funds sold | | | | | 26,398 | | | | | | — | | | | | | — | | | | | | 26,398 | | | | | | — | | | | | | 26,398 | | |
Total interest earning assets | | | | $ | 297,470 | | | | | $ | 30,756 | | | | | $ | 151,095 | | | | | $ | 479,321 | | | | | $ | 431,185 | | | | | $ | 910,506 | | |
Liabilities | | | | | | | | ||||||||||||||||||||||||||||||
Interest-bearing liabilities | | | | | | | | ||||||||||||||||||||||||||||||
Interest-bearing deposits | | | | $ | 311,145 | | | | | $ | 9,214 | | | | | $ | 41,457 | | | | | $ | 361,816 | | | | | $ | 161,339 | | | | | $ | 523,155 | | |
Time deposits | | | | | 26,865 | | | | | | 9,552 | | | | | | 63,813 | | | | | | 100,230 | | | | | | 11,753 | | | | | | 111,983 | | |
Total interest-bearing deposits | | | | | 338,010 | | | | | | 18,766 | | | | | | 105,270 | | | | | | 462,046 | | | | | | 173,092 | | | | | | 635,138 | | |
Securities sold under agreements to repurchase | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
FHLB Advances | | | | | 12,496 | | | | | | 10,000 | | | | | | 7,504 | | | | | | 30,000 | | | | | | 20,000 | | | | | | 50,000 | | |
Other borrowed funds | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total interest-bearing liabilities | | | | $ | 350,506 | | | | | $ | 28,766 | | | | | $ | 112,774 | | | | | $ | 492,046 | | | | | $ | 193,092 | | | | | $ | 685,138 | | |
Period gap | | | | $ | (53,036) | | | | | $ | 1,990 | | | | | $ | 38,321 | | | | | $ | (12,725) | | | | | $ | 238,093 | | | | | | | | |
Cumulative gap | | | | $ | (53,036) | | | | | $ | (51,046) | | | | | $ | (12,725) | | | | | $ | (12,725) | | | | | $ | 225,368 | | | | | | | | |
Ratio of cumulative gap to total earning assets | | | | | (17.83)% | | | | | | (165.97)% | | | | | | (8.42)% | | | | | | (2.65)% | | | | | | 52.27% | | | | | | | | |
Ratio of cumulative gap to cumulative total earning assets | | | | | (5.82)% | | | | | | (5.61)% | | | | | | (1.40)% | | | | | | (1.40)% | | | | | | 24.75% | | | | | | | | |
September 30, 2019 (Dollars in thousands) | | | Within One Month | | | After One Month Through Three Months | | | After Three Months Through 12 Months | | | Within One Year | | | Greater than One Year or Nonsensitive | | | Total | | ||||||||||||||||||
Assets | | | | | | | | ||||||||||||||||||||||||||||||
Interest earning assets | | | | | | | | ||||||||||||||||||||||||||||||
Loans(1) | | | | $ | 28,315 | | | | | $ | 30,636 | | | | | $ | 144,402 | | | | | $ | 203,353 | | | | | $ | 561,310 | | | | | $ | 764,663 | | |
Securities | | | | | 1,811 | | | | | | 1,012 | | | | | | 3,220 | | | | | | 6,043 | | | | | | 23,392 | | | | | | 29,435 | | |
Interest-bearing deposits at other financial institutions(2) | | | | | 90,010 | | | | | | — | | | | | | — | | | | | | 90,010 | | | | | | — | | | | | | 90,010 | | |
Federal funds sold | | | | | 26,398 | | | | | | — | | | | | | — | | | | | | 26,398 | | | | | | — | | | | | | 26,398 | | |
Total interest earning assets | | | | $ | 146,534 | | | | | $ | 31,648 | | | | | $ | 147,622 | | | | | $ | 325,804 | | | | | $ | 584,702 | | | | | $ | 910,506 | | |
Liabilities | | | | | | | | ||||||||||||||||||||||||||||||
Interest-bearing liabilities | | | | | | | | ||||||||||||||||||||||||||||||
Interest-bearing deposits | | | | $ | 12,889 | | | | | $ | 25,778 | | | | | $ | 116,001 | | | | | $ | 154,668 | | | | | $ | 368,487 | | | | | $ | 523,155 | | |
Time deposits | | | | | 26,865 | | | | | | 9,552 | | | | | | 63,813 | | | | | | 100,230 | | | | | | 11,753 | | | | | | 111,983 | | |
Total interest-bearing deposits | | | | | 39,754 | | | | | | 35,330 | | | | | | 179,814 | | | | | | 254,898 | | | | | | 380,240 | | | | | | 635,138 | | |
Securities sold under agreements to repurchase | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
FHLB Advances | | | | | 3,263 | | | | | | 11,525 | | | | | | 14,434 | | | | | | 29,222 | | | | | | 20,778 | | | | | | 50,000 | | |
Other borrowed funds | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total interest-bearing liabilities | | | | $ | 43,017 | | | | | $ | 46,855 | | | | | $ | 194,248 | | | | | $ | 284,120 | | | | | $ | 401,018 | | | | | $ | 685,138 | | |
Period gap | | | | $ | 103,517 | | | | | $ | (15,207) | | | | | $ | (46,626) | | | | | $ | 41,684 | | | | | $ | 183,684 | | | | | | | | |
Cumulative gap | | | | $ | 103,517 | | | | | $ | 88,310 | | | | | $ | 41,684 | | | | | $ | 41,684 | | | | | $ | 225,368 | | | | | | | | |
Ratio of cumulative gap to total earning assets | | | | | 70.64% | | | | | | 279.04% | | | | | | 28.24% | | | | | | 12.79% | | | | | | 38.54% | | | | | | | | |
Net Interest Income at Risk – 12 months | | | -400bps | | | -300bps | | | -200bps | | | -100bps | | | Flat | | | +100bps | | | +200bps | | | +300bps | | | +400bps | | |||||||||||||||||||||||||||
Policy Limit | | | | | (20.0)% | | | | | | (15.0)% | | | | | | (10.0)% | | | | | | (5.0)% | | | | | | N/A | | | | | | 10.0% | | | | | | 15.0% | | | | | | 20.0% | | | | | | 25.0% | | |
September 30, 2019 | | | | | 2.4% | | | | | | 4.6% | | | | | | 3.78% | | | | | | 1.0% | | | | | | N/A | | | | | | (0.7)% | | | | | | (1.4)% | | | | | | (2.1)% | | | | | | (3.1)% | | |
December 31, 2018 | | | | | (9.9)% | | | | | | (6.6)% | | | | | | (4.7)% | | | | | | (1.6)% | | | | | | N/A | | | | | | 0.6% | | | | | | 0.8% | | | | | | 1.0% | | | | | | 1.2% | | |
December 31, 2017 | | | | | (11.8)% | | | | | | (8.2)% | | | | | | (5.6)% | | | | | | (4.3)% | | | | | | N/A | | | | | | (3.6)% | | | | | | (7.0)% | | | | | | (10.5)% | | | | | | 13.9% | | |
Net Interest Income at Risk – 24 months | | | -400bps | | | -300bps | | | -200bps | | | -100bps | | | Flat | | | +100bps | | | +200bps | | | +300bps | | | +400bps | | |||||||||||||||||||||||||||
Policy Limit | | | | | (20.0)% | | | | | | (15.0)% | | | | | | (10.0)% | | | | | | (5.0)% | | | | | | N/A | | | | | | 10.0% | | | | | | 15.0% | | | | | | 20.0% | | | | | | 25.0% | | |
September 30, 2019 | | | | | (8.3)% | | | | | | (4.5)% | | | | | | (1.9)% | | | | | | (2.6)% | | | | | | N/A | | | | | | 2.1% | | | | | | 3.6% | | | | | | 4.8% | | | | | | 5.6% | | |
December 31, 2018 | | | | | (16.1)% | | | | | | (12.0)% | | | | | | (7.7)% | | | | | | (2.7)% | | | | | | N/A | | | | | | 1.3% | | | | | | 2.3% | | | | | | 3.1% | | | | | | 3.7% | | |
December 31, 2017 | | | | | (18.4)% | | | | | | (13.7)% | | | | | | (10.2)% | | | | | | (6.2)% | | | | | | N/A | | | | | | 5.0% | | | | | | 9.8% | | | | | | 14.7% | | | | | | 19.6% | | |
Economic Value of Equity as of | | | -400bps | | | -300bps | | | -200bps | | | -100bps | | | Flat | | | +100bps | | | +200bps | | | +300bps | | | +400bps | | |||||||||||||||||||||||||||
Policy Limit | | | | | (30.0)% | | | | | | (20.0)% | | | | | | (15.0)% | | | | | | (10.0)% | | | | | | N/A | | | | | | 17.5% | | | | | | 22.5% | | | | | | 27.5% | | | | | | 37.5% | | |
September 30, 2019 | | | | | 5.8% | | | | | | 6.8% | | | | | | 6.9% | | | | | | 3.5% | | | | | | N/A | | | | | | (3.9)% | | | | | | (9.5)% | | | | | | (15.4)% | | | | | | (21.9)% | | |
December 31, 2018 | | | | | (5.3)% | | | | | | (0.4)% | | | | | | 0.7% | | | | | | 0.6% | | | | | | N/A | | | | | | (3.7)% | | | | | | (8.2)% | | | | | | (13.2)% | | | | | | (19.0)% | | |
December 31, 2017 | | | | | (4.2)% | | | | | | (0.7)% | | | | | | 1.8% | | | | | | (0.5)% | | | | | | N/A | | | | | | (2.6)% | | | | | | (5.0)% | | | | | | (7.2)% | | | | | | (9.7)% | | |
| 2008 | | | • Professional Bank raised $13.9 million in capital and commenced banking operations from a single branch in South Miami, FL | |
| 2013 | | | • Abel L. Iglesias joined the Bank as an Executive Vice President and Chief Lending Officer in April | |
• Hired a team from a South Florida-based regional bank in May • Daniel R. Sheehan, one of our founders, appointed as Chairman of the Bank Board of Directors, or Bank Board, in • Ended the year with approximately $217 million in total assets | | ||||
| 2014 | | | • Opened our second branch in Coral Gables, FL in January, and relocated our headquarters • Completed a $3.3 million private placement in February • Effectuated a share exchange to form Professional Holding Corp., with Professional Bank as its wholly owned subsidiary. Daniel R. Sheehan named Chairman and CEO of Professional Holding Corp. | |
| 2015 | | | • Reported total assets in excess of $250 million as of March 31 • Completed a $15.0 million private placement in April | |
| 2016 | | | • Hired a commercial and industrial, or C&I, banking team from a large national bank to establish our Palm Beach Gardens, FL loan production office in February • Established a SBA department with bankers from a large regional bank in February • Abel L. Iglesias assumed the role of President and Chief Executive Officer of the Bank following the unexpected passing of the Bank's then President and Chief Executive Officer in September • Completed a core system conversion to CSI enabling a foundation for greater technological flexibility | |
| 2017 | | | • Completed an $18.9 million private placement in February • Hired a private banking team from a large national bank to establish our loan production office in Boca Raton, FL in March • Opened a loan production office in Fort Lauderdale, FL in October • Converted our Palm Beach Gardens, FL loan production office to a full-service branch in November • Reported total assets in excess of $500 million as of December 31 | |
| 2018 | | | • Hired a senior banker from a large national bank in February to establish a West Palm Beach, FL loan production office, which opened in April • Hired a new Chief Risk Officer and Chief Credit Officer • Hired a banking team from a large national bank in April for our Dadeland branch (which opened in 2019) • Hired senior bankers from a large Southeastern regional bank for our Palm Beach Gardens, FL branch in October • Hired a banking team from a large, Southeastern regional bank for our Fort Lauderdale, FL loan production office in October • Completed a $20.0 million private placement in December | |
| 2019 | | | • Hired a private banking team from a large South Florida-based bank in January to establish our Doral, FL loan production office, which opened in July • Hired treasury management bankers from a large, Southeastern regional bank in the first quarter • Converted our existing loan production office in Boca Raton, FL into a full-service branch in May • Opened our fifth branch in Miami, FL (Dadeland) in May • Hired the former president of a South Florida-based community bank and a team from a large national bank in May to establish Wellington, FL loan production office, which opened in July • In preparation of this offering to more accurately reflect his functional role, Daniel R. Sheehan assumed the title of Chief Executive Officer of the Bank in July with Abel L. Iglesias remaining as President and assuming the additional role of Chief Operating Officer of the Bank • Announced a pending merger with Marquis Bancorp, Inc. on August 12 • Reported total assets of $963.2 million as of September 30 • Opened our Digital Innovation Center in Cleveland, OH on October 28 | |
Current Locations | | | Date Loan Production Office (LPO) Opened | | | Date of Branch Opening / Conversion | | | Total Deposits as of September 30, 2019 (thousands) | | |||
South Miami | | | — | | | Aug. 2008 | | | | $ | 306,683 | | |
Coral Gables | | | — | | | Jan. 2014 | | | | $ | 227,958 | | |
Palm Beach Gardens | | | Feb. 2016 | | | Nov. 2017 | | | | $ | 204,558 | | |
Boca Raton | | | Mar. 2017 | | | May 2019 | | | | $ | 71,161 | | |
Fort Lauderdale LPO | | | Oct. 2017 | | | — | | | | | — | | |
West Palm Beach LPO | | | Apr. 2018 | | | — | | | | | — | | |
Dadeland | | | — | | | May 2019 | | | | $ | 12,705 | | |
Doral LPO | | | Jul. 2019 | | | — | | | | | — | | |
Wellington LPO | | | Jul. 2019 | | | — | | | | | — | | |
| Rolando DiGasbarro | | | • Founder and principal of Windsor Investment Holdings • Former Investment Banker for Lehman Brothers • Director since 2014 | |
| Carlos M. Garcia | | | • Founder and CEO of BayBoston Managers LLC and Managing Partner of BayBoston Capital L.P. • Current member of the Financial Oversight and Management Board for Puerto Rico • Current Chairman of the Board of CFG Partners L.P. • Former interim President and CEO, COO and Senior Executive Vice President of Santander Bancorp; and former interim CEO, COO and President at Banco Santander Puerto Rico • Former President, CEO and Chairman at the Government Development Bank for Puerto Rico | |
| | | | • Director since 2015 | |
| Jon L. Gorney | | | • Former CIO of National City Corporation • Former Chairman and CEO of National Processing Company • Director since 2017 | |
| Herbert Martens | | | • Founder of Professional Bank • Managing Partner of Advent Associates, LLC • Former President and CEO for NatCity Investment & EVP Wealth Management — National City Corporation • Director since 2008 | |
| Dr. Lawrence Schimmel | | | • Founder of Professional Bank • Chief Medical Officer of Clinigence Holdings Co. • Former Chairman of MegaBank • Former CEO of Allied Health Group • Director since 2008 | |
| Anton V. Schutz | | | • Founder and Principal of Mendon Capital Advisors Corp. • Director since 2015 | |
Market Area | | | Total Population 2020 (Estimated) | | | Change 2010 – 2020 (%) | | | Change 2020 – 2025 (%) | | | Median Household Income 2020 ($) | | | Projected Household Income Change 2020 – 2025 (%) | | | Unemployment Rate (%) | | ||||||||||||||||||
Miami-Dade County | | | | | 2,834,352 | | | | | | 13.5 | | | | | | 6.3 | | | | | | 53,537 | | | | | | 12.1 | | | | | | 3.9 | | |
Broward County | | | | | 1,981,920 | | | | | | 13.4 | | | | | | 6.3 | | | | | | 63,317 | | | | | | 11.4 | | | | | | 3.4 | | |
Palm Beach County | | | | | 1,508,665 | | | | | | 14.3 | | | | | | 6.5 | | | | | | 66,729 | | | | | | 11.2 | | | | | | 3.6 | | |
Miami-Dade MSA | | | | | 6,324,937 | | | | | | 13.7 | | | | | | 6.3 | | | | | | 60,197 | | | | | | 11.5 | | | | | | 3.5 | | |
Florida | | | | | 21,794,397 | | | | | | 15.9 | | | | | | 6.6 | | | | | | 58,586 | | | | | | 11.6 | | | | | | 3.3 | | |
United States | | | | | 330,342,293 | | | | | | 7.0 | | | | | | 3.3 | | | | | | 66,010 | | | | | | 9.9 | | | | | | 3.5 | | |
Location | | | Street Address | | | City & State | |
Bank Branches | | | | ||||
Coral Gables | | | 396 Alhambra Circle, Suite 150 | | | Coral Gables, FL | |
South Miami | | | 1518 San Ignacio Avenue | | | Coral Gables, FL | |
Palm Beach Gardens | | | 5100 PGA Boulevard, Suite 101 | | | Palm Beach Gardens, FL | |
Boca Raton | | | 980 N. Federal Highway, Suite 100 | | | Boca Raton, FL | |
Dadeland | | | 9150 South Dadeland Boulevard, Suite 104 | | | Miami, FL | |
Location | | | Street Address | | | City & State | |
Loan Production Offices | | | | ||||
Doral | | | 9690 NW 41 Street, Unit 1 | | | Doral, FL | |
Fort Lauderdale | | | 888 East Las Olas Boulevard, Suite 201 | | | Fort Lauderdale, FL | |
West Palm Beach | | | 625 North Flagler Drive, Suite 509 | | | West Palm Beach, FL | |
Wellington | | | 12008 South Shore Blvd, #108 | | | Wellington, FL | |
| | | Nine Months Ended September 30, | | |||||||||||||||
(Dollars in thousands) | | | 2019 | | | 2018 | | | Change | | |||||||||
Interest income | | | | $ | 24,317 | | | | | $ | 20,438 | | | | | | 19.0% | | |
Interest expense | | | | | 7,664 | | | | | | 4,891 | | | | | | 56.7% | | |
Net Interest income | | | | | 16,653 | | | | | | 15,546 | | | | | | 7.1% | | |
Provision for loan losses | | | | | 367 | | | | | | 712 | | | | | | (48.5)% | | |
Net interest income after provision | | | | | 16,286 | | | | | | 14,834 | | | | | | 9.8% | | |
Noninterest income | | | | | 1,140 | | | | | | 830 | | | | | | 37.3% | | |
Noninterest expense | | | | | 10,121 | | | | | | 9,054 | | | | | | 11.8% | | |
Income before income taxes | | | | | 7,305 | | | | | | 6,611 | | | | | | 10.5% | | |
Income tax expense | | | | | 1,844 | | | | | | 1,737 | | | | | | 6.2% | | |
Net income | | | | $ | 5,461 | | | | | $ | 4,874 | | | | | | 12.0% | | |
|
| | | Years Ended December 31, | | | Years Ended December 31, | | ||||||||||||||||||||||||||||||
(Dollars in thousands) | | | 2018 | | | 2017 | | | Change | | | 2017 | | | 2016 | | | Change | | ||||||||||||||||||
Interest income | | | | $ | 28,240 | | | | | $ | 21,303 | | | | | | 32.6% | | | | | $ | 21,303 | | | | | $ | 16,765 | | | | | | 27.1% | | |
Interest expense | | | | | 7,073 | | | | | | 4,012 | | | | | | 76.3% | | | | | | 4,012 | | | | | | 2,625 | | | | | | 52.8% | | |
Net Interest income | | | | | 21,167 | | | | | | 17,292 | | | | | | 22.4% | | | | | | 17,292 | | | | | | 14,140 | | | | | | 22.3% | | |
Provision for loan losses | | | | | 1,149 | | | | | | 921 | | | | | | 24.7% | | | | | | 921 | | | | | | 640 | | | | | | 44.0% | | |
Net interest income after provision | | | | | 20,018 | | | | | | 16,370 | | | | | | 22.3% | | | | | | 16,370 | | | | | | 13,500 | | | | | | 21.3% | | |
Noninterest income | | | | | 1,257 | | | | | | 1,309 | | | | | | (3.9)% | | | | | | 1,309 | | | | | | 1,168 | | | | | | 12.0% | | |
Noninterest expense | | | | | 12,326 | | | | | | 10,637 | | | | | | 15.9% | | | | | | 10,637 | | | | | | 8,975 | | | | | | 18.5% | | |
Income before income taxes | | | | | 8,949 | | | | | | 7,042 | | | | | | 27.1% | | | | | | 7,042 | | | | | | 5,693 | | | | | | 23.7% | | |
Income tax expense | | | | | 2,141 | | | | | | 3,080 | | | | | | (30.5)% | | | | | | 3,080 | | | | | | 2,214 | | | | | | 39.1% | | |
Net income | | | | $ | 6,808 | | | | | $ | 3,963 | | | | | | 71.8% | | | | | $ | 3,963 | | | | | $ | 3,479 | | | | | | 13.9% | | |
Preferred stock dividend declared | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7 | | | | | | (100.0)% | | |
Net income available to common shareholders | | | | $ | 6,808 | | | | | $ | 3,963 | | | | | | | | | | | $ | 3,963 | | | | | $ | 3,472 | | | | | | 14.1% | | |
| | | For the Nine Months Ended September 30, | | |||||||||||||||||||||||||||||||||
| | | 2019 | | | 2018 | | ||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Average Outstanding Balance | | | Interest Income/ Expense | | | Average Yield/Rate | | | Average Outstanding Balance | | | Interest Income/ Expense | | | Average Yield/Rate | | ||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest earning assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | | $ | 49,179 | | | | | $ | 859 | | | | | | 2.34% | | | | | $ | 45,600 | | | | | $ | 604 | | | | | | 1.77% | | |
Federal funds sold | | | | | — | | | | | | — | | | | | | 0.00% | | | | | | — | | | | | | — | | | | | | 0.00% | | |
Federal Reserve Bank stock, FHLB stock and other corporate stock | | | | | 2,077 | | | | | | — | | | | | | 0.00% | | | | | | 2,246 | | | | | | — | | | | | | 0.00% | | |
Investment securities | | | | | 31,751 | | | | | | 690 | | | | | | 2.58% | | | | | | 27,280 | | | | | | 454 | | | | | | 2.25% | | |
Loans | | | | | 557,712 | | | | | | 22,849 | | | | | | 5.48% | | | | | | 502,582 | | | | | | 19,380 | | | | | | 5.16% | | |
Total interest earning assets | | | | | 640,719 | | | | | | 24,317 | | | | | | 5.08% | | | | | | 577,708 | | | | | | 20,438 | | | | | | 4.73% | | |
Noninterest earning assets | | | | | 18,720 | | | | | | — | | | | | | | | | | | | 14,737 | | | | | | — | | | | | | | | |
Total assets | | | | | 659,439 | | | | | | 24,317 | | | | | | 4.93% | | | | | | 592,445 | | | | | | 20,438 | | | | | | 4.61% | | |
Liabilities and shareholders’ equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | | | 426,884 | | | | | | 6,387 | | | | | | 2.00% | | | | | | 372,229 | | | | | | 3,758 | | | | | | 1.35% | | |
Borrowed funds | | | | | 45,320 | | | | | | 1,277 | | | | | | 3.78% | | | | | | 51,616 | | | | | | 1,133 | | | | | | 2.94% | | |
Total interest-bearing liabilities | | | | | 472,204 | | | | | | 7,664 | | | | | | 2.17% | | | | | | 423,845 | | | | | | 4,891 | | | | | | 1.54% | | |
Noninterest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing deposits | | | | | 130,521 | | | | | | | | | | | | | | | | | | 119,955 | | | | | | | | | | | | | | |
Other noninterest-bearing liabilities | | | | | 2,732 | | | | | | | | | | | | | | | | | | 2,574 | | | | | | | | | | | | | | |
Shareholders’ equity | | | | | 53,982 | | | | | | | | | | | | | | | | | | 46,071 | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | | | $ | 659,439 | | | | | | | | | | | | | | | | | $ | 592,445 | | | | | | | | | | | | | | |
Net interest spread | | | | | | | | | | | | | | | | | 2.91% | | | | | | | | | | | | | | | | | | 3.19% | | |
Net interest income | | | | | | | | | | $ | 16,653 | | | | | | | | | | | | | | | | | $ | 15,547 | | | | | | | | |
Net interest margin | | | | | | | | | | | | | | | | | 3.48% | | | | | | | | | | | | | | | | | | 3.60% | | |
|
| | | For the Years Ended December 31, | | |||||||||||||||||||||||||||||||||||||||||||||||||||
| | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Average Outstanding Balance | | | Interest Income/ Expense | | | Average Yield/Rate | | | Average Outstanding Balance | | | Interest Income/ Expense | | | Average Yield/Rate | | | Average Outstanding Balance | | | Interest Income/ Expense | | | Average Yield/Rate | | |||||||||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Interest earning assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Interest-bearing deposits | | | | $ | 41,500 | | | | | $ | 779 | | | | | | 1.88% | | | | | $ | 44,238 | | | | | $ | 483 | | | | | | 1.09% | | | | | $ | 48,476 | | | | | $ | 244 | | | | | | 0.50% | | |
Federal funds sold | | | | | — | | | | | | — | | | | | | 0.00% | | | | | | — | | | | | | — | | | | | | 0.00% | | | | | | 315 | | | | | | — | | | | | | 0.00% | | |
Federal Reserve Bank stock, FHLB stock and other corporate stock | | | | | 2,274 | | | | | | — | | | | | | 0.00% | | | | | | 1,614 | | | | | | — | | | | | | 0.00% | | | | | | 1,282 | | | | | | — | | | | | | 0.00% | | |
Investment securities | | | | | 29,132 | | | | | | 664 | | | | | | 2.29% | | | | | | 17,122 | | | | | | 299 | | | | | | 1.77% | | | | | | 14,686 | | | | | | 244 | | | | | | 1.68% | | |
Loans(1) | | | | | 514,258 | | | | | | 26,797 | | | | | | 5.21% | | | | | | 411,801 | | | | | | 20,521 | | | | | | 4.98% | | | | | | 328,733 | | | | | | 16,277 | | | | | | 4.95% | | |
Total interest earning assets | | | | | 587,164 | | | | | | 28,240 | | | | | | 4.81% | | | | | | 474,774 | | | | | | 21,303 | | | | | | 4.49% | | | | | | 393,492 | | | | | | 16,765 | | | | | | 4.26% | | |
Noninterest earning assets | | | | | 15,069 | | | | | | — | | | | | | | | | | | | 12,825 | | | | | | — | | | | | | | | | | | | 11,027 | | | | | | — | | | | | | | | |
Total assets | | | | | 602,233 | | | | | | 28,240 | | | | | | 4.69% | | | | | | 487,599 | | | | | | 21,303 | | | | | | 4.37% | | | | | | 404,519 | | | | | | 16,765 | | | | | | 4.15% | | |
Liabilities and shareholders’ equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | | | 378,111 | | | | | | 5,473 | | | | | | 1.45% | | | | | | 289,856 | | | | | | 2,910 | | | | | | 1.00% | | | | | | 254,967 | | | | | | 2,315 | | | | | | 0.91% | | |
Borrowed funds | | | | | 52,304 | | | | | | 1,600 | | | | | | 3.06% | | | | | | 38,289 | | | | | | 1,101 | | | | | | 2.88% | | | | | | 23,939 | | | | | | 311 | | | | | | 1.30% | | |
Total interest-bearing liabilities | | | | | 430,415 | | | | | | 7,073 | | | | | | 1.64% | | | | | | 328,145 | | | | | | 4,012 | | | | | | 1.22% | | | | | | 278,906 | | | | | | 2,625 | | | | | | 0.94% | | |
Noninterest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing deposits | | | | | 122,571 | | | | | | | | | | | | | | | | | | 116,049 | | | | | | | | | | | | | | | | | | 85,944 | | | | | | | | | | | | | | |
Other noninterest-bearing liabilities | | | | | 10,156 | | | | | | | | | | | | | | | | | | 2,084 | | | | | | | | | | | | | | | | | | 1,631 | | | | | | | | | | | | | | |
Shareholders’ equity | | | | | 47,018 | | | | | | | | | | | | | | | | | | 41,321 | | | | | | | | | | | | | | | | | | 38,038 | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | | | $ | 602,233 | | | | | | | | | | | | | | | | | $ | 487,599 | | | | | | | | | | | | | | | | | $ | 404,519 | | | | | | | | | | | | | | |
Net interest spread(2) | | | | | | | | | | | | | | | | | 3.17% | | | | | | | | | | | | | | | | | | 3.27% | | | | | | | | | | | | | | | | | | 3.32% | | |
Net interest income | | | | | | | | | | $ | 21,167 | | | | | | | | | | | | | | | | | $ | 17,292 | | | | | | | | | | | | | | | | | $ | 14,140 | | | | | | | | |
Net interest margin(3) | | | | | | | | | | | | | | | | | 3.60% | | | | | | | | | | | | | | | | | | 3.64% | | | | | | | | | | | | | | | | | | 3.59% | | |
|
| | | For the Nine Months Ended September 30, 2019 Compared to 2018 | | |||||||||||||||
| | | Change Due To | | | | | | | | |||||||||
(Dollars in thousands) | | | Volume | | | Rate | | | Interest Variance | | |||||||||
Interest income | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | | $ | 47 | | | | | $ | 208 | | | | | $ | 255 | | |
Federal funds sold | | | | | — | | | | | | — | | | | | | — | | |
Federal Reserve Bank stock, Federal Home Loan Bank stock and other corporate stock | | | | | — | | | | | | — | | | | | | — | | |
Investment securities | | | | | 75 | | | | | | 80 | | | | | | 155 | | |
Loans | | | | | 2,126 | | | | | | 1,343 | | | | | | 3,469 | | |
Total interest income | | | | $ | 2,248 | | | | | $ | 1,631 | | | | | $ | 3,879 | | |
Interest expense | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | | | 552 | | | | | | 2,077 | | | | | | 2,629 | | |
Borrowed funds | | | | | (138) | | | | | | 282 | | | | | | 144 | | |
Total interest expense | | | | $ | 414 | | | | | $ | 2,359 | | | | | $ | 2,773 | | |
Net interest income | | | | $ | 1,834 | | | | | ||||||||||
|
| | | For the Years Ended December 31, 2018 Compared to 2017 | | | For the Years Ended December 31, 2017 Compared to 2016 | | ||||||||||||||||||||||||||||||
| | | Change Due To | | | | | | | | | Change Due To | | | | | | | | ||||||||||||||||||
(Dollars in thousands) | | | Volume | | | Rate | | | Interest Variance | | | Volume | | | Rate | | | Interest Variance | | ||||||||||||||||||
Interest income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | | $ | (30) | | | | | $ | 326 | | | | | $ | 296 | | | | | $ | (21) | | | | | $ | 260 | | | | | $ | 239 | | |
Federal funds sold | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Federal Reserve Bank stock, Federal Home Loan Bank stock and other corporate stock | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Investment securities | | | | | 212 | | | | | | 153 | | | | | | 365 | | | | | | 41 | | | | | | 14 | | | | | | 55 | | |
Loans | | | | | 5,106 | | | | | | 1,170 | | | | | | 6,276 | | | | | | 4,113 | | | | | | 131 | | | | | | 4,244 | | |
Total interest income | | | | $ | 5,288 | | | | | $ | 1,649 | | | | | $ | 6,937 | | | | | $ | 4,133 | | | | | $ | 405 | | | | | $ | 4,538 | | |
Interest expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | | | 885 | | | | | | 1,678 | | | | | | 2,563 | | | | | | 317 | | | | | | 278 | | | | | | 595 | | |
Borrowed funds | | | | | 403 | | | | | | 96 | | | | | | 499 | | | | | | 186 | | | | | | 604 | | | | | | 790 | | |
Total interest expense | | | | $ | 1,288 | | | | | $ | 1,774 | | | | | $ | 3,062 | | | | | $ | 503 | | | | | $ | 882 | | | | | $ | 1,385 | | |
Net interest income | | | | $ | 4,000 | | | | | | | | | | | | | | | | | $ | 3,630 | | | | | | | | | | | | | | |
| | | Nine Months Ended September 30, | | |||||||||||||||
(Dollars in thousands) | | | 2019 | | | 2018 | | | Increase (Decrease) | | |||||||||
Noninterest income | | | | | | | | | | | | | | | | | | | |
Deposit account service charges | | | | $ | 593 | | | | | $ | 554 | | | | | $ | 39 | | |
Gain (loss) on sale of loans | | | | | 312 | | | | | | 116 | | | | | | 196 | | |
Other fees and charges | | | | | 235 | | | | | | 161 | | | | | | 74 | | |
Total noninterest income | | | | $ | 1,140 | | | | | $ | 831 | | | | | $ | 309 | | |
|
| | | Years Ended December 31, | | | Years Ended December 31, | | ||||||||||||||||||||||||||||||
(Dollars in thousands) | | | 2018 | | | 2017 | | | Increase (Decrease) | | | 2017 | | | 2016 | | | Increase (Decrease) | | ||||||||||||||||||
Noninterest income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposit account service charges | | | | $ | 750 | | | | | $ | 615 | | | | | $ | 136 | | | | | $ | 615 | | | | | $ | 408 | | | | | $ | 207 | | |
Gain (loss) on sale of loans | | | | | 250 | | | | | | 527 | | | | | | (277) | | | | | | 527 | | | | | | 626 | | | | | | (100) | | |
Other fees and charges | | | | | 257 | | | | | | 167 | | | | | | 89 | | | | | | 167 | | | | | | 134 | | | | | | 34 | | |
Total noninterest income | | | | $ | 1,257 | | | | | $ | 1,309 | | | | | $ | (52) | | | | | $ | 1,309 | | | | | $ | 1,168 | | | | | $ | 141 | | |
| | | Nine Months Ended September 30, | | |||||||||||||||
(Dollars in thousands) | | | 2019 | | | 2018 | | | Increase (Decrease) | | |||||||||
Noninterest expense | | | | | | | | | | | | | | | | | | | |
Salaries and benefits | | | | $ | 6,155 | | | | | $ | 5,531 | | | | | $ | 624 | | |
Occupancy and equipment | | | | | 1,111 | | | | | | 1,010 | | | | | | 101 | | |
Professional services | | | | | 516 | | | | | | 337 | | | | | | 179 | | |
Data Processing | | | | | 456 | | | | | | 403 | | | | | | 53 | | |
Advertising | | | | | 96 | | | | | | 147 | | | | | | (51) | | |
Other real estate owned expense | | | | | 107 | | | | | | — | | | | | | 107 | | |
Regulatory assessments | | | | | 199 | | | | | | 342 | | | | | | (143) | | |
Directors’ compensation | | | | | 756 | | | | | | 693 | | | | | | 63 | | |
Other | | | | | 725 | | | | | | 591 | | | | | | 134 | | |
Total noninterest expense | | | | $ | 10,121 | | | | | $ | 9,054 | | | | | $ | 1,067 | | |
|
| | | Years Ended December 31, | | | Years Ended December 31, | | ||||||||||||||||||||||||||||||
(Dollars in thousands) | | | 2018 | | | 2017 | | | Increase (Decrease) | | | 2017 | | | 2016 | | | Increase (Decrease) | | ||||||||||||||||||
Noninterest expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Salaries and benefits | | | | $ | 7,320 | | | | | $ | 6,275 | | | | | $ | 1,045 | | | | | $ | 6,275 | | | | | $ | 5,259 | | | | | $ | 1,016 | | |
Occupancy and equipment | | | | | 1,335 | | | | | | 1,110 | | | | | | 225 | | | | | | 1,110 | | | | | | 1,150 | | | | | | (40) | | |
Professional services | | | | | 415 | | | | | | 432 | | | | | | (17) | | | | | | 432 | | | | | | 339 | | | | | | 93 | | |
Data Processing | | | | | 545 | | | | | | 499 | | | | | | 46 | | | | | | 499 | | | | | | 485 | | | | | | 14 | | |
Advertising | | | | | 193 | | | | | | 138 | | | | | | 55 | | | | | | 138 | | | | | | 112 | | | | | | 27 | | |
Regulatory assessments | | | | | 442 | | | | | | 239 | | | | | | 203 | | | | | | 239 | | | | | | 280 | | | | | | (40) | | |
Directors’ compensation | | | | | 930 | | | | | | 738 | | | | | | 192 | | | | | | 738 | | | | | | 429 | | | | | | 308 | | |
Other | | | | | 1,146 | | | | | | 1,205 | | | | | | (59) | | | | | | 1,205 | | | | | | 920 | | | | | | 284 | | |
Total noninterest expense | | | | $ | 12,326 | | | | | $ | 10,637 | | | | | $ | 1,689 | | | | | $ | 10,637 | | | | | $ | 8,975 | | | | | $ | 1,662 | | |
At September 30, 2019 | | | One Year or Less | | | More than One Year Through Five Years | | | More than Five Years Through 10 Years | | | More than 10 Years | | | Total | | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Book Value | | | Weighted Average Yield | | | Book Value | | | Weighted Average Yield | | | Book Value | | | Weighted Average Yield | | | Book Value | | | Weighted Average Yield | | | Book Value | | | Fair Value | | | Weighted Average Yield | | |||||||||||||||||||||||||||||||||
Securities Available for Sale | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Government-sponsored agencies | | | | $ | 2,000 | | | | | | 1.44% | | | | | $ | 7,000 | | | | | | 2.66% | | | | | $ | — | | | | | | | | | | | $ | — | | | | | | | | | | | $ | 9,000 | | | | | $ | 9,036 | | | | | | 2.39% | | |
Mortgage-backed securities | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,362 | | | | | | 2.43% | | | | | | 5,430 | | | | | | 1.52% | | | | | | 11,792 | | | | | | 11,874 | | | | | | 2.01% | | |
U.S. Agency obligations | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,254 | | | | | | 3.27% | | | | | | 2,013 | | | | | | 2.30% | | | | | | 3,267 | | | | | | 3,180 | | | | | | 2.67% | | |
State, county, and municipals | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,048 | | | | | | 2.30% | | | | | | — | | | | | | — | | | | | | 1,048 | | | | | | 1,075 | | | | | | 2.30% | | |
Corporate bonds | | | | | 501 | | | | | | 3.53% | | | | | | 499 | | | | | | 3.29% | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,000 | | | | | | 1,006 | | | | | | 3.41% | | |
Total | | | | $ | 2,501 | | | | �� | | | | | | | $ | 7,499 | | | | | | | | | | | $ | 8,664 | | | | | | | | | | | $ | 7,443 | | | | | | | | | | | $ | 26,107 | | | | | $ | 26,171 | | | | | | | | |
Securities Held to Maturity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S Treasury securities | | | | | — | | | | | | — | | | | | $ | 201 | | | | | | 1.80% | | | | | $ | — | | | | | | | | | | | $ | — | | | | | | | | | | | $ | 201 | | | | | $ | 201 | | | | | | 1.80% | | |
U.S. Government-sponsored agencies | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | — | | |
Mortgage-backed securities | | | | | 3 | | | | | | 5.43% | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 294 | | | | | | 1.21% | | | | | | 297 | | | | | | 292 | | | | | | 1.25% | | |
Foreign Sovereign (Israel) | | | | | — | | | | | | | | | | | | 1,000 | | | | | | 2,68% | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 1,000 | | | | | | 1,000 | | | | | | 2.68% | | |
Total | | | | $ | 3 | | | | | | | | | | | $ | 1,201 | | | | | | | | | | | $ | — | | | | | | | | | | | $ | 294 | | | | | | | | | | | $ | 1,498 | | | | | $ | 1,493 | | | | | | | | |
|
| | | December 31, | | |||||||||||||||||||||||||||||||||||||||||||||
| | | September 30, 2019 | | | 2018 | | | 2017 | | | 2016 | | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Book Value | | | Percent | | | Book Value | | | Percent | | | Book Value | | | Percent | | | Book Value | | | Percent | | ||||||||||||||||||||||||
Securities Available for Sale | | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Government agencies | | | | $ | 3,267 | | | | | | 12.51% | | | | | $ | 4,182 | | | | | | 12.96% | | | | | $ | 5,533 | | | | | | 32.96% | | | | | $ | 5,477 | | | | | | 40.80% | | |
U.S. government-sponsored entities | | | | | 20,792 | | | | | | 79.64% | | | | | | 25,533 | | | | | | 79.12% | | | | | | 8,692 | | | | | | 51.78% | | | | | | 4,874 | | | | | | 36.31% | | |
State, county and municipal bonds | | | | | 1,048 | | | | | | 4.01% | | | | | | 1,054 | | | | | | 3.27% | | | | | | 1,061 | | | | | | 6.32% | | | | | | 1,068 | | | | | | 7.96% | | |
Corporate bonds | | | | | 1,000 | | | | | | 3.83% | | | | | | 1,501 | | | | | | 4.65% | | | | | | 1,502 | | | | | | 8.95% | | | | | | 2,004 | | | | | | 14.93% | | |
Total | | | | $ | 26,107 | | | | | | 100.00% | | | | | $ | 32,270 | | | | | | 100.00% | | | | | $ | 16,788 | | | | | | 100.00% | | | | | $ | 13,423 | | | | | | 100.00% | | |
Securities Held to Maturity | | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasuries | | | | $ | 201 | | | | | | 13.42% | | | | | $ | 200 | | | | | | 12.91% | | | | | $ | 200 | | | | | | 12.35% | | | | | $ | 200 | | | | | | 11.74% | | |
U.S. government-sponsored entities | | | | | 297 | | | | | | 19.83% | | | | | | 349 | | | | | | 22.53% | | | | | | 420 | | | | | | 25.93% | | | | | | 503 | | | | | | 29.54% | | |
Foreign sovereign (Israel) | | | | | 1,000 | | | | | | 66.76% | | | | | | 1,000 | | | | | | 64.56% | | | | | | 1,000 | | | | | | 61.73% | | | | | | 1,000 | | | | | | 58.72% | | |
Total | | | | $ | 1,498 | | | | | | 100.00% | | | | | $ | 1,549 | | | | | | 100.00% | | | | | $ | 1,620 | | | | | | 100.00% | | | | | $ | 1,703 | | | | | | 100.00% | | |
| | | | | | | | | | | | | | | December 31, | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | September 30, 2019 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Amount | | | Percent | | | Amount | | | Percent | | | Amount | | | Percent | | | Amount | | | Percent | | | Amount | | | Percent | | | Amount | | | Percent | | ||||||||||||||||||||||||||||||||||||
Commercial real estate | | | | $ | 404,087 | | | | | | 71.4% | | | | | $ | 384,697 | | | | | | 69.1% | | | | | $ | 298,677 | | | | | | 64.5% | | | | | $ | 240,623 | | | | | | 66.0% | | | | | $ | 201,833 | | | | | | 70.2% | | | | | $ | 132,386 | | | | | | 64.8% | | |
Owner Occupied | | | | | 165,662 | | | | | | — | | | | | | 171,924 | | | | | | — | | | | | | 135,101 | | | | | | — | | | | | | 102,593 | | | | | | — | | | | | | 66,032 | | | | | | — | | | | | | 30,032 | | | | | | — | | |
Non-Owner Occupied | | | | | 238,425 | | | | | | — | | | | | | 212,773 | | | | | | — | | | | | | 163,576 | | | | | | — | | | | | | 138,030 | | | | | | — | | | | | | 135,801 | | | | | | — | | | | | | 102,354 | | | | | | — | | |
Residential real estate | | | | | 64,985 | | | | | | 11.5% | | | | | | 69,568 | | | | | | 12.5% | | | | | | 72,006 | | | | | | 15.5% | | | | | | 60,500 | | | | | | 16.6% | | | | | | 44,081 | | | | | | 15.3% | | | | | | 41,154 | | | | | | 20.2% | | |
Commercial | | | | | 72,902 | | | | | | 12.9% | | | | | | 80,172 | | | | | | 14.4% | | | | | | 61,661 | | | | | | 13.3% | | | | | | 46,408 | | | | | | 12.7% | | | | | | 38,170 | | | | | | 13.3% | | | | | | 22,593 | | | | | | 11.1% | | |
Construction and development | | | | | 18,713 | | | | | | 3.3% | | | | | | 18,747 | | | | | | 3.4% | | | | | | 28,629 | | | | | | 6.2% | | | | | | 13,932 | | | | | | 3.8% | | | | | | 400 | | | | | | 0.1% | | | | | | 2,614 | | | | | | 1.3% | | |
Consumer and other loans | | | | | 4,882 | | | | | | 0.9% | | | | | | 3,408 | | | | | | 0.6% | | | | | | 2,210 | | | | | | 0.5% | | | | | | 3,061 | | | | | | 0.8% | | | | | | 3,125 | | | | | | 1.1% | | | | | | 5,457 | | | | | | 2.7% | | |
Total loans | | | | $ | 565,569 | | | | | | 100.0% | | | | | $ | 556,593 | | | | | | 100.0% | | | | | $ | 463,183 | | | | | | 100.0% | | | | | $ | 364,524 | | | | | | 100.0% | | | | | $ | 287,609 | | | | | | 100.0% | | | | | $ | 204,204 | | | | | | 100.0% | | |
Unearned loan origination fees (costs), net | | | | | (300) | | | | | | | | | | | | (366) | | | | | | | | | | | | (115) | | | | | | | | | | | | 136 | | | | | | | | | | | | (152) | | | | | | | | | | | | (157) | | | | | | | | |
Allowance for loan losses | | | | | (5,294) | | | | | | | | | | | | (4,863) | | | | | | | | | | | | (4,199) | | | | | | | | | | | | (3,625) | | | | | | | | | | | | (3,000) | | | | | | | | | | | | (2,711) | | | | | | | | |
Loans, net | | | | $ | 559,975 | | | | | | | | | | | $ | 551,364 | | | | | | | | | | | $ | 458,869 | | | | | | | | | | | $ | 361,035 | | | | | | | | | | | $ | 284,457 | | | | | | | | | | | $ | 201,336 | | | | | | | | |
|
| | | As of September 30, 2019 | | |||||||||
(Dollars in thousands) | | | Amount | | | Percent | | ||||||
CRE and Construction & Development Loans, combined | | | | | | | | | | | | | |
1 – 4 Family Construction | | | | $ | 2,845 | | | | | | 0.7% | | |
Commercial 1 – 4 Family Residential | | | | | 35,958 | | | | | | 8.5% | | |
Auto (Car Lot/Auto Repair) | | | | | 1,025 | | | | | | .2% | | |
Gas Station | | | | | 51,817 | | | | | | 12.3% | | |
Commercial Construction | | | | | 15,039 | | | | | | 3.6% | | |
Educational Facility | | | | | 4,435 | | | | | | 1.0% | | |
Hotel | | | | | 30,003 | | | | | | 7.1% | | |
Land Development | | | | | 11,824 | | | | | | 2.8% | | |
Multifamily | | | | | 19,270 | | | | | | 4.6% | | |
Office | | | | | 50,632 | | | | | | 12.0% | | |
Other/Special Use | | | | | 2,104 | | | | | | .5% | | |
Religious Facility | | | | | 5,084 | | | | | | 1.2% | | |
Retail | | | | | 120,140 | | | | | | 28.4% | | |
Warehouse | | | | | 72,624 | | | | | | 17.2% | | |
Total | | | | $ | 422,800 | | | | | | 100.0% | | |
|
| | | As of September 30, 2019 | | |||||||||
(Dollars in thousands) | | | Amount | | | Percent | | ||||||
CRE and Construction & Development Loans, combined | | | | | | | | | | | | | |
Broward | | | | $ | 83,645 | | | | | | 19.8% | | |
Miami-Dade | | | | | 265,508 | | | | | | 62.8% | | |
Palm Beach | | | | | 21,642 | | | | | | 5.1% | | |
Other FL County | | | | | 42,427 | | | | | | 10.0% | | |
Out of State | | | | | 9,578 | | | | | | 2.3% | | |
Total | | | | $ | 422,800 | | | | | | 100.0% | | |
|
| | | As of September 30, 2019 | | |||||||||
(Dollars in thousands) | | | Amount | | | Percent | | ||||||
Commercial and Industrial Loans | | | | | | | | | | | | | |
Business Products | | | | $ | 3,878 | | | | | | 5.3% | | |
Business Services | | | | | 5,188 | | | | | | 7.1% | | |
Information | | | | | 4,442 | | | | | | 6.1% | | |
Construction | | | | | 1,525 | | | | | | 2.1% | | |
Finance | | | | | 15,330 | | | | | | 21.0% | | |
Healthcare | | | | | 4,239 | | | | | | 5.8% | | |
Real Estate | | | | | 8,797 | | | | | | 12.1% | | |
Services | | | | | 9,252 | | | | | | 12.7% | | |
Trade | | | | | 19,187 | | | | | | 26.3% | | |
Transportation | | | | | 1,064 | | | | | | 1.5% | | |
Total | | | | $ | 72,902 | | | | | | 100.0% | | |
| | | September 30, 2019 | | |||||||||||||||||||||
(Dollars in thousands) | | | Due in One Year or Less | | | Due in One to Five Years | | | Due After Five Years | | | Total | | ||||||||||||
Commercial Real Estate | | | | $ | 34,552 | | | | | $ | 159,190 | | | | | $ | 210,345 | | | | | $ | 404,087 | | |
Residential Real Estate | | | | | 9,002 | | | | | | 41,972 | | | | | | 14,011 | | | | | | 64,985 | | |
Commercial | | | | | 37,269 | | | | | | 22,937 | | | | | | 12,696 | | | | | | 72,902 | | |
Construction and Development | | | | | 6,591 | | | | | | 12,122 | | | | | | — | | | | | | 18,713 | | |
Consumer and Other | | | | | 1,336 | | | | | | 885 | | | | | | 2,661 | | | | | | 4,882 | | |
Total loans | | | | $ | 88,750 | | | | | $ | 237,106 | | | | | $ | 239,713 | | | | | $ | 565,569 | | |
Amounts with fixed rates | | | | $ | 25,120 | | | | | $ | 148,367 | | | | | $ | 55,399 | | | | | $ | 228,886 | | |
Amounts with floating rates | | | | $ | 63,630 | | | | | $ | 88,739 | | | | | $ | 184,314 | | | | | $ | 336,683 | | |
(Dollars in thousands) | | | Pass | | | Special Mention | | | Substandard | | | Doubtful | | | Total | | |||||||||||||||
September 30, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | 404,087 | | | | | | — | | | | | | — | | | | | | — | | | | | $ | 404,087 | | |
Residential real estate | | | | | 64,875 | | | | | | — | | | | | | 110 | | | | | | — | | | | | | 64,985 | | |
Commercial | | | | | 72,902 | | | | | | — | | | | | | — | | | | | | — | | | | | | 72,902 | | |
Construction and development | | | | | 18,713 | | | | | | — | | | | | | — | | | | | | — | | | | | | 18,713 | | |
Consumer | | | | | 4,882 | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,882 | | |
Total | | | | $ | 565,459 | | | | | $ | — | | | | | $ | 110 | | | | | $ | — | | | | | $ | 565,569 | | |
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | 384,697 | | | | | | — | | | | | | — | | | | | | — | | | | | $ | 384,697 | | |
Residential real estate | | | | | 69,458 | | | | | | — | | | | | | 110 | | | | | | — | | | | | | 69,568 | | |
Commercial | | | | | 80,172 | | | | | | — | | | | | | — | | | | | | — | | | | | | 80,172 | | |
Construction and development | | | | | 18,747 | | | | | | — | | | | | | — | | | | | | — | | | | | | 18,747 | | |
Consumer | | | | | 3,408 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,408 | | |
Total | | | | $ | 556,482 | | | | | $ | — | | | | | $ | 110 | | | | | $ | — | | | | | $ | 556,592 | | |
December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | 298,677 | | | | | | — | | | | | | — | | | | | | — | | | | | $ | 298,677 | | |
Residential real estate | | | | | 69,906 | | | | | | — | | | | | | 2,100 | | | | | | — | | | | | | 72,006 | | |
Commercial | | | | | 61,356 | | | | | | — | | | | | | 305 | | | | | | — | | | | | | 61,661 | | |
Construction and development | | | | | 28,629 | | | | | | — | | | | | | — | | | | | | — | | | | | | 28,629 | | |
Consumer | | | | | 2,210 | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,210 | | |
Total | | | | $ | 460,778 | | | | | $ | — | | | | | $ | 2,405 | | | | | $ | — | | | | | $ | 463,183 | | |
December 31, 2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | 240,623 | | | | | | — | | | | | | — | | | | | | — | | | | | $ | 240,623 | | |
Residential real estate | | | | | 59,958 | | | | | | — | | | | | | 542 | | | | | | — | | | | | | 60,500 | | |
Commercial | | | | | 41,695 | | | | | | 4,713 | | | | | | — | | | | | | — | | | | | | 46,408 | | |
Construction and development | | | | | 13,932 | | | | | | — | | | | | | — | | | | | | — | | | | | | 13,932 | | |
Consumer | | | | | 3,061 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,061 | | |
Total | | | | $ | 359,269 | | | | | $ | 4,713 | | | | | $ | 542 | | | | | $ | — | | | | | $ | 364,524 | | |
| | | December 31, | | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | September 30, 2019 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | | ||||||||||||||||||
Accruing loans 90 or more days past due | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Nonaccrual Loans | | ||||||||||||||||||||||||||||||||||||
Commercial real estate | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial | | | | | 110 | | | | | | 110 | | | | | | 2,100 | | | | | | — | | | | | | — | | | | | | 20 | | |
Construction and development | | | | | — | | | | | | 294 | | | | | | 306 | | | | | | — | | | | | | — | | | | | | — | | |
Consumer and other loans | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total nonperforming loans | | | | $ | 110 | | | | | $ | 404 | | | | | $ | 2,406 | | | | | $ | — | | | | | $ | — | | | | | $ | 20 | | |
Other real estate owned | | | | | 1,708 | | | | | | 1,708 | | | | | | — | | | | | | — | | | | | | 720 | | | | | | 743 | | |
Total nonperforming assets | | | | $ | 1,818 | | | | | $ | 2,112 | | | | | $ | 2,406 | | | | | $ | — | | | | | $ | 720 | | | | | $ | 763 | | |
Restructured loans – nonaccrual | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Restructured loans – accruing | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Ratio of nonperforming loans to total loans | | | | | 0.02% | | | | | | 0.07% | | | | | | 0.51% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.01% | | |
Ratio of nonperforming assets to total assets | | | | | 0.27% | | | | | | 0.32% | | | | | | 0.45% | | | | | | 0.00% | | | | | | 0.21% | | | | | | 0.27% | | |
| | Nine Months Ended September 30, | | Year Ended December 31, | | | Nine Months Ended September 30, | | Year Ended December 31, | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | 2019 | | 2018 | | 2018 | | 2017 | | 2016 | | 2015 | | 2014 | | | 2019 | | 2018 | | 2018 | | 2017 | | 2016 | | 2015 | | 2014 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | | | $ | 4,863 | | | | $ | 4,199 | | | | $ | 4,199 | | | | $ | 3,625 | | | | $ | 3,000 | | | | $ | 2,711 | | | | $ | 2,541 | | | | | $ | 4,863 | | | | $ | 4,199 | | | | $ | 4,199 | | | | $ | 3,625 | | | | $ | 3,000 | | | | $ | 2,711 | | | | $ | 2,541 | | | ||||||||||||||
Charge-offs | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||
Commercial real estate | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 48 | | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 48 | | | ||||||||||||||
Residential real estate | | | | — | | | | | — | | | | | 491 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | | — | | | | | — | | | | | 491 | | | | | — | | | | | — | | | | | — | | | | | — | | | ||||||||||||||
Commercial | | | | — | | | | | — | | | | | — | | | | | 310 | | | | | — | | | | | — | | | | | — | | | | | | — | | | | | — | | | | | — | | ��� | | | | 310 | | | | | — | | | | | — | | | | | — | | | |||||||||||||
Construction and development | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | ||||||||||||||
Consumer and other | | | | — | | | | | — | | | | | — | | | | | 41 | | | | | 16 | | | | | 9 | | | | | — | | | | | | — | | | | | — | | | | | — | | | | | 41 | | | | | 16 | | | | | 9 | | | | | — | | | ||||||||||||||
Total Charge-offs | | | | — | | | | | — | | | | | 491 | | | | | 351 | | | | | 16 | | | | | 9 | | | | | 48 | | | | | | — | | | | | — | | | | | 491 | | | | | 351 | | | | | 16 | | | | | 9 | | | | | 48 | | | ||||||||||||||
Recoveries | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | ||||||||||||||
Commercial real estate | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | ||||||||||||||
Residential real estate | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | ||||||||||||||
Commercial | | | | 60 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 14 | | | | | | 60 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 14 | | | ||||||||||||||
Construction and development | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | ||||||||||||||
Consumer and other | | | | 4 | | | | | 3 | | | | | 6 | | | | | 3 | | | | | 1 | | | | | — | | | | | — | | | | | | 4 | | | | | 3 | | | | | 6 | | | | | 3 | | | | | 1 | | | | | — | | | | | — | | | ||||||||||||||
Total recoveries | | | | 64 | | | | | 3 | | | | | 6 | | | | | 3 | | | | | 1 | | | | | — | | | | | 14 | | | | | | 64 | | | | | 3 | | | | | 6 | | | | | 3 | | | | | 1 | | | | | — | | | | | 14 | | | ||||||||||||||
Net charge-offs (recoveries) | | | | (64) | | | | | (3) | | | | | 485 | | | | | 348 | | | | | 15 | | | | | 9 | | | | | 34 | | | | | | (64) | | | | | (3) | | | | | 485 | | | | | 348 | | | | | 15 | | | | | 9 | | | | | 34 | | | ||||||||||||||
Provision for loan losses | | | | 367 | | | | | 712 | | | | | 1,149 | | | | | 922 | | | | | 640 | | | | | 298 | | | | | 204 | | | | | | 367 | | | | | 712 | | | | | 1,149 | | | | | 922 | | | | | 640 | | | | | 298 | | | | | 204 | | | ||||||||||||||
Balance at end of period | | | $ | 5,294 | | | | $ | 4,914 | | | | $ | 4,863 | | | | $ | 4,199 | | | | $ | 3,625 | | | | $ | 3,000 | | | | $ | 2,711 | | | | | $ | 5,294 | | | | $ | 4,914 | | | | $ | 4,863 | | | | $ | 4,199 | | | | $ | 3,625 | | | | $ | 3,000 | | | | $ | 2,711 | | | ||||||||||||||
Ratio of net charge-offs to average loans | | | | (0.01)% | | | | | 0.00% | | | | | 0.09% | | | | | 0.08% | | | | | 0.00% | | | | | 0.00% | | | | | 0.02% | | | | | | (0.01)% | | | | | 0.00% | | | | | 0.09% | | | | | 0.08% | | | | | 0.00% | | | | | 0.00% | | | | | 0.02% | | | ||||||||||||||
ALLL as a percentage of loans at end of period | | | | 0.94% | | | | | 0.91% | | | | | 0.87% | | | | | 0.91% | | | | | 0.99% | | | | | 1.04% | | | | | 1.33% | | | | | | 0.94% | | | | | 0.91% | | | | | 0.87% | | | | | 0.91% | | | | | 0.99% | | | | | 1.04% | | | | | 1.33% | | | ||||||||||||||
ALLL as a multiple of net charge-offs | | | | (82.72) | | | | | (1,638.00) | | | | | 10.03 | | | | | 12.07 | | | | | 241.67 | | | | | 333.33 | | | | | 79.74 | | | | | | (82.72) | | | | | (1,638.00) | | | | | 10.03 | | | | | 12.07 | | | | | 241.67 | | | | | 333.33 | | | | | 79.74 | | | ||||||||||||||
ALLL as a percentage of nonperforming loans | | | | 4,812.73% | | | | | 204.41% | | | | | 1,203.71% | | | | | 174.52% | | | | | N/A | | | | | N/A | | | | | 13,555.00% | | | | | | 4,812.73% | | | | | 204.41% | | | | | 1,203.71% | | | | | 174.52% | | | | | N/A | | | | | N/A | | | | | 13,555.00% | | | |
| | | September 30, 2019 | | | December 31, 2018 | | | December 31, 2017 | | | December 31, 2016 | | | December 31, 2015 | | | December 31, 2014 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Allowance | | | Percent | | | Allowance | | | Percent | | | Allowance | | | Percent | | | Allowance | | | Percent | | | Allowance | | | Percent | | | Allowance | | | Percent | | ||||||||||||||||||||||||||||||||||||
Commercial real estate | | | | $ | 3,577 | | | | | | 65.57% | | | | | $ | 3,082 | | | | | | 63.38% | | | | | $ | 2,758 | | | | | | 65.68% | | | | | $ | 2,314 | | | | | | 63.83% | | | | | $ | 2,009 | | | | | | 66.97% | | | | | $ | 1,860 | | | | | | 68.61% | | |
Residential real estate | | | | | 708 | | | | | | 13.37% | | | | | | 687 | | | | | | 14.13% | | | | | | 600 | | | | | | 14.29% | | | | | | 652 | | | | | | 17.99% | | | | | | 553 | | | | | | 18.43% | | | | | | 572 | | | | | | 21.10% | | |
Commercial | | | | | 758 | | | | | | 14.32% | | | | | | 846 | | | | | | 17.40% | | | | | | 568 | | | | | | 13.53% | | | | | | 506 | | | | | | 13.96% | | | | | | 412 | | | | | | 13.73% | | | | | | 215 | | | | | | 7.97% | | |
Construction and development | | | | | 192 | | | | | | 3.63% | | | | | | 216 | | | | | | 4.44% | | | | | | 236 | | | | | | 5.62% | | | | | | 125 | | | | | | 3.45% | | | | | | 3 | | | | | | 0.10% | | | | | | 28 | | | | | | 1.03% | | |
Consumer and other | | | | | 59 | | | | | | 1.11% | | | | | | 32 | | | | | | 0.66% | | | | | | 37 | | | | | | 0.88% | | | | | | 28 | | | | | | 0.77% | | | | | | 24 | | | | | | 0.77% | | | | | | 35 | | | | | | 1.29% | | |
Total allowance for loan losses | | | | $ | 5,294 | | | | | | 100.00% | | | | | $ | 4,863 | | | | | | 100.00% | | | | | $ | 4,199 | | | | | | 100.00% | | | | | $ | 3,625 | | | | | | 100.00% | | | | | $ | 3,001 | | | | | | 100.00% | | | | | $ | 2,710 | | | | | | 100.00% | | |
|
| | | For the Nine Months Ended September 30, 2019 | | | For the Year Ended December 31 | | ||||||||||||||||||||||||||||||||||||||||||
| | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Average Balance | | | Average Rate | | | Average Balance | | | Average Rate | | | Average Balance | | | Average Rate | | | Average Balance | | | Average Rate | | ||||||||||||||||||||||||
NOW accounts | | | | $ | 19,583 | | | | | | 0.05% | | | | | $ | 20,097 | | | | | | 0.05% | | | | | $ | 14,342 | | | | | | 0.05% | | | | | $ | 14,347 | | | | | | 0.06% | | |
Money market accounts | | | | | 128,256 | | | | | | 1.36% | | | | | | 138,225 | | | | | | 0.98% | | | | | | 135,475 | | | | | | 0.82% | | | | | | 116,650 | | | | | | 0.76% | | |
Savings accounts | | | | | 3,801 | | | | | | 0.20% | | | | | | 4,278 | | | | | | 0.20% | | | | | | 2,859 | | | | | | 0.20% | | | | | | 2,872 | | | | | | 0.20% | | |
Certificates of deposit | | | | | 275,244 | | | | | | 2.46% | | | | | | 215,511 | | | | | | 1.90% | | | | | | 137,180 | | | | | | 1.30% | | | | | | 121,071 | | | | | | 1.17% | | |
Total interest-bearing deposits | | | | | 426,884 | | | | | | 2.00% | | | | | | 378,111 | | | | | | 1.45% | | | | | | 289,856 | | | | | | 1.00% | | | | | | 254,941 | | | | | | 0.91% | | |
Noninterest-bearing deposits | | | | | 130,521 | | | | | | 0.00% | | | | | | 114,771 | | | | | | 0.00% | | | | | | 110,976 | | | | | | 0.00% | | | | | | 82,323 | | | | | | 0.00% | | |
Total deposits | | | | $ | 557,405 | | | | | | 1.53% | | | | | $ | 492,881 | | | | | | 1.11% | | | | | $ | 400,832 | | | | | | 0.73% | | | | | $ | 337,264 | | | | | | 0.69% | | |
|
(Dollars in thousands) | | | Three Months or Less | | | Over Three Through Six Months | | | Over Six Months Through 12 Months | | | Over 12 Months | | | Total | | |||||||||||||||
$100,000 or more | | | | $ | 69,558 | | | | | $ | 52,287 | | | | | $ | 50,455 | | | | | $ | 55,270 | | | | | $ | 227,570 | | |
Less than $100,000 | | | | | 3,883 | | | | | | 1,843 | | | | | | 4,012 | | | | | | 5,903 | | | | | | 15,641 | | |
Total | | | | $ | 73,441 | | | | | $ | 54,130 | | | | | $ | 54,467 | | | | | $ | 61,173 | | | | | $ | 243,211 | | |
| | | Nine Months Ended September 30, 2019 | | | Years Ended December 31, | | ||||||||||||||||||
(Dollars in thousands) | | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||
Amount outstanding at period-end | | | | $ | 30,000 | | | | | $ | 75,000 | | | | | $ | 39,000 | | | | | $ | 36,000 | | |
Weighted average interest rate at period-end | | | | | 2.09% | | | | | | 2.63% | | | | | | 1.44% | | | | | | 0.87% | | |
Maximum month-end balance during period | | | | $ | 56,000 | | | | | $ | 75,000 | | | | | $ | 39,000 | | | | | $ | 36,000 | | |
Average balance outstanding during period | | | | $ | 35,630 | | | | | $ | 42,663 | | | | | $ | 28,674 | | | | | $ | 22,213 | | |
Weighted average interest rate during period | | | | | 2.65% | | | | | | 1.95% | | | | | | 1.11% | | | | | | 0.83% | | |
| | | Nine Months Ended September 30, 2019 | | | Years Ended December 31, | | ||||||||||||||||||
| | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||
Return on Average Assets | | | | | 1.11% | | | | | | 1.13% | | | | | | 0.81% | | | | | | 0.86% | | |
Return on Average Equity | | | | | 13.53% | | | | | | 14.35% | | | | | | 9.58% | | | | | | 9.13% | | |
Average Equity to Average Assets | | | | | 8.19% | | | | | | 7.81% | | | | | | 8.47% | | | | | | 9.40% | | |
| | | Actual | | | Minimum for capital adequacy | | | Minimum to be well capitalized | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Amount | | | Ratio | | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||||||||
September 30, 2019 | | | | | | | | ||||||||||||||||||||||||||||||
Total risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Marquis Bank | | | | $ | 70,920 | | | | | | 12.2% | | | | | $ | 46,619 | | | | | | 8.0% | | | | | $ | 58,274 | | | | | | 10.0% | | |
MBI | | | | | 71,839 | | | | | | 12.3% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Tier 1 risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Marquis Bank | | | | | 65,188 | | | | | | 11.2% | | | | | | 34,964 | | | | | | 6.0% | | | | | | 46,619 | | | | | | 8.0% | | |
MBI | | | | | 56,397 | | | | | | 9.7% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Tier 1 leverage ratio | | | | | | | | ||||||||||||||||||||||||||||||
Marquis Bank | | | | | 65,188 | | | | | | 9.7% | | | | | | 26,838 | | | | | | 4.0% | | | | | | 33,548 | | | | | | 5.0% | | |
MBI | | | | | 56,397 | | | | | | 8.4% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Common equity tier 1 capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Marquis Bank | | | | | 65,188 | | | | | | 11.2% | | | | | | 26,223 | | | | | | 4.5% | | | | | | 37,878 | | | | | | 6.5% | | |
MBI | | | | | 56,397 | | | | | | 9.7% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
December 31, 2018 | | | | | | | | ||||||||||||||||||||||||||||||
Total risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Marquis Bank | | | | $ | 65,167 | | | | | | 11.4% | | | | | $ | 45,768 | | | | | | 8.0% | | | | | $ | 57,210 | | | | | | 10.0% | | |
MBI | | | | | 65,980 | | | | | | 11.5% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
| | | Actual | | | Minimum for capital adequacy | | | Minimum to be well capitalized | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Amount | | | Ratio | | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||||||||
Tier 1 risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Marquis Bank | | | | | 59,885 | | | | | | 10.5% | | | | | | 34,326 | | | | | | 6.0% | | | | | $ | 45,768 | | | | | | 8.0% | | |
MBI | | | | | 51,028 | | | | | | 8.9% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Tier 1 risk-based leverage ratio | | | | | | | | ||||||||||||||||||||||||||||||
Marquis Bank | | | | | 59,885 | | | | | | 9.5% | | | | | | 25,251 | | | | | | 4.0% | | | | | | 31,564 | | | | | | 5.0% | | |
MBI | | | | | 51,028 | | | | | | 8.1% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Common equity tier 1 capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Marquis Bank | | | | | 59,885 | | | | | | 10.5% | | | | | | 25,744 | | | | | | 4.5% | | | | | | 37,186 | | | | | | 6.5% | | |
MBI | | | | | 51,028 | | | | | | 8.9% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
December 31, 2017 | | | | | | | | ||||||||||||||||||||||||||||||
Total risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Marquis Bank | | | | $ | 55,528 | | | | | | 11.8% | | | | | $ | 37,620 | | | | | | 8.0% | | | | | $ | 47,025 | | | | | | 10.0% | | |
MBI | | | | | 57,400 | | | | | | 12.2% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Tier 1 risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Marquis Bank | | | | | 50,995 | | | | | | 10.8% | | | | | | 28,215 | | | | | | 6.0% | | | | | | 37,620 | | | | | | 8.0% | | |
MBI | | | | | 43,254 | | | | | | 9.2% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Tier 1 leverage ratio | | | | | | | | ||||||||||||||||||||||||||||||
Marquis Bank | | | | | 50,995 | | | | | | 9.7% | | | | | | 20,983 | | | | | | 4.0% | | | | | | 26,229 | | | | | | 5.0% | | |
MBI | | | | | 43,254 | | | | | | 8.2% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Common equity tier 1 capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Marquis Bank | | | | | 50,995 | | | | | | 10.8% | | | | | | 21,161 | | | | | | 4.5% | | | | | | 30,566 | | | | | | 6.5% | | |
MBI | | | | | 43,254 | | | | | | 9.2% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
December 31, 2016 | | | | | | | | ||||||||||||||||||||||||||||||
Total risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Marquis Bank | | | | $ | 50,303 | | | | | | 13.7% | | | | | $ | 29,410 | | | | | | 8.0% | | | | | $ | 36,763 | | | | | | 10.0% | | |
MBI | | | | | 51,856 | | | | | | 14.2% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Tier 1 risk-based capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Marquis Bank | | | | | 46,678 | | | | | | 12.7% | | | | | | 22,058 | | | | | | 6.0% | | | | | | 29,410 | | | | | | 8.0% | | |
MBI | | | | | 38,678 | | | | | | 10.6% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Tier 1 leverage ratio | | | | | | | | ||||||||||||||||||||||||||||||
Marquis Bank | | | | | 46,678 | | | | | | 11.1% | | | | | | 16,847 | | | | | | 4.0% | | | | | | 21,059 | | | | | | 5.0% | | |
MBI | | | | | 38,678 | | | | | | 9.4% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Common equity tier 1 capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Marquis Bank | | | | | 46,678 | | | | | | 12.7% | | | | | | 16,543 | | | | | | 4.5% | | | | | | 23,896 | | | | | | 6.5% | | |
MBI | | | | | 38,678 | | | | | | 10.6% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
(Dollars in thousands) | | | Due in One Year or Less | | | Due after One Through Three Years | | | Due After Three Through Five Years | | | Due After Five Years | | | Total | | |||||||||||||||
FHLB Advances | | | | $ | 30,000 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 30,000 | | |
Certificates of deposit $100,000 or more | | | | | 172,300 | | | | | | 54,411 | | | | | | 859 | | | | | | — | | | | | | 227,570 | | |
Certificates of deposit less than $100,000 | | | | | 9,738 | | | | | | 5,822 | | | | | | 81 | | | | | | — | | | | | | 15,641 | | |
Operating leases | | | | | 710 | | | | | | 1,161 | | | | | | 125 | | | | | | | | | | | | 1,996 | | |
Subordinated Debt, net of issuance | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 212,748 | | | | | $ | 61,394 | | | | | $ | 1,065 | | | | | $ | — | | | | | $ | 275,207 | | |
| | | | | | | | | As of December 31, | | |||||||||||||||
(Dollars in thousands) | | | As of September 30, 2019 | | | 2018 | | | 2017 | | | 2016 | | ||||||||||||
Unfunded lines of credit | | | | $ | 129,063 | | | | | $ | 119,327 | | | | | $ | 113,150 | | | | | $ | 73,405 | | |
Commitments to extend credit | | | | | 22,718 | | | | | | 27,017 | | | | | | 37,687 | | | | | | 34,987 | | |
Letters of credit | | | | | 2,010 | | | | | | 1,502 | | | | | | 2,568 | | | | | | 4,076 | | |
Total credit extension commitments | | | | $ | 153,791 | | | | | $ | 147,845 | | | | | $ | 153,405 | | | | | $ | 112,468 | | |
Location | | | Street Address | | | City & State | |
Coral Gables | | | 355 Alhambra Circle, Suite 125 | | | Coral Gables, FL | |
Aventura | | | 19058 NE 29th Avenue | | | Aventura, FL | |
Fort Lauderdale | | | 201 Southeast 12th Street | | | Fort Lauderdale, FL | |
Name | | | Age | | | Position(s) | |
Executive Officers: | | | | ||||
Daniel R. Sheehan | | | 44 | | | Chairman and Chief Executive Officer of the Company and Bank; Director of the Company and the Bank | |
Abel L. Iglesias | | | 57 | | | President and Chief Operating Officer of the Bank; Director of the Company and the Bank | |
Ryan L. Gorney | | | 39 | | | Chief Information and Digital Officer of the Bank | |
Mary Usategui | | | 35 | | | Executive Vice President and Chief Financial Officer of the Bank; Corporate Secretary of the Company | |
Non-Executive Directors: | | | | ||||
Rolando DiGasbarro | | | 50 | | | Director of the Company and the Bank | |
Carlos M. Garcia | | | 48 | | | Director of the Company and the Bank | |
Jon L. Gorney | | | 69 | | | Director of the Company and the Bank | |
Herbert Martens, Jr. | | | 67 | | | Director of the Company and the Bank | |
Dr. Lawrence Schimmel, M.D. | | | 71 | | | Director of the Company and the Bank | |
Anton V. Schutz | | | 55 | | | Director of the Company and the Bank | |
| Board of Directors | | ||||||
| Class I (Terms ending 2021) | | | Class II (Terms ending 2022) | | | Class III (Terms ending 2020) | |
| Rolando DiGasbarro | | | Abel L. Iglesias | | | Jon L. Gorney | |
| Carlos M. Garcia | | | Daniel R. Sheehan | | | Herbert Martens, Jr. | |
| Dr. Lawrence Schimmel | | | | | | Anton V. Schutz | |
Name and Principal Position | | | Year | | | Salary | | | Bonus | | | Stock Awards | | | Other | | | Total | | ||||||||||||||||||
Daniel R. Sheehan Chairman and Chief Executive Officer | | | | | 2019 | | | | | $ | 400,000 | | | | | $ | 100,000 | | | | | $ | 665,000 | | | | | $ | 58,900 | | | | | $ | 1,223,900 | | |
Abel L. Iglesias President and Chief Operating Officer | | | | | 2019 | | | | | | 352,917 | | | | | | 120,000 | | | | | | 162,502 | | | | | | 58,004 | | | | | $ | 693,422 | | |
Ryan L. Gorney Chief Information/Digital Officer | | | | | 2019 | | | | | | 350,000 | | | | | | 50,000 | | | | | | 95,000 | | | | | | 37,619 | | | | | $ | 532,619 | | |
Name | | | Year | | | 401(k) Match | | | Health Savings Account | | | Auto Allowance | | | Health & Welfare | | | Other(1) | | | Total | | |||||||||||||||||||||
Daniel R. Sheehan | | | | | 2019 | | | | | $ | 16,462 | | | | | $ | — | | | | | $ | 6,000 | | | | | $ | 36,437 | | | | | $ | — | | | | | $ | 58,900 | | |
Abel L. Iglesias | | | | | 2019 | | | | | | 14,883 | | | | | | — | | | | | | 8,500 | | | | | | 32,221 | | | | | | 2,400 | | | | | $ | 58,004 | | |
Ryan L. Gorney | | | | | 2019 | | | | | | 7,593 | | | | | | — | | | | | | — | | | | | | 30,026 | | | | | | — | | | | | $ | 37,619 | | |
| | | Option Awards(1) | | | Share Appreciation Right Unit Awards(2) | | | Stock Awards | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||
Name | | | Number of Securities Underlying Unexercised Option Awards Exercisable | | | Number of Securities Underlying Unexercised Option Awards Unexercisable | | | Option Exercise Price | | | Number of Securities Underlying Unexercised Units Exercisable | | | Number of Securities Underlying Unexercised Units Unexercisable | | | Base Price | | | Number of Shares That Have Not Vested | | | Market Value of Shares of Stock That Have Not Vested | | | Grant Date | | | Expiration Date | | ||||||||||||||||||||||||||||||
Daniel R. Sheehan | | | | | 2,000 | | | | | | — | | | | | $ | 10.00 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4/30/2010 | | | | | | 4/30/2020 | | |
Daniel R. Sheehan | | | | | 6,000 | | | | | | — | | | | | $ | 12.50 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1/1/2013 | | | | | | 1/1/2023 | | |
Daniel R. Sheehan | | | | | 5,000 | | | | | | — | | | | | $ | 12.50 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 10/1/2013 | | | | | | 10/1/2023 | | |
Daniel R. Sheehan | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | 10,000 | | | | | $ | 11.50 | | | | | | | | | | | | | | | | | | 10/27/2014 | | | | | | N/A | | |
Daniel R. Sheehan | | | | | 5,000 | | | | | | — | | | | | $ | 13.00 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 12/31/2014 | | | | | | 12/31/2021 | | |
Daniel R. Sheehan | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | 40,000 | | | | | $ | 11.50 | | | | | | | | | | | | | | | | | | 12/31/2015 | | | | | | N/A | | |
Daniel R. Sheehan | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | 125,000 | | | | | $ | 12.75 | | | | | | | | | | | | | | | | | | 12/20/2016 | | | | | | N/A | | |
Daniel R. Sheehan | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | 75,000 | | | | | $ | 15.00 | | | | | | | | | | | | | | | | | | 12/31/2017 | | | | | | N/A | | |
Daniel R. Sheehan | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | 60,000 | | | | | $ | 18.25 | | | | | | | | | | | | | | | | | | 12/31/2018 | | | | | | N/A | | |
Daniel R. Sheehan | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 35,000 | | | | | $ | 665,000 | | | | | | 12/31/2019 | | | | | | N/A | | |
Abel L. Iglesias | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | 12,000 | | | | | $ | 12.50 | | | | | | | | | | | | | | | | | | 3/1/2013 | | | | | | N/A | | |
Abel L. Iglesias | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | 5,000 | | | | | $ | 11.50 | | | | | | | | | | | | | | | | | | 12/31/2014 | | | | | | N/A | | |
Abel L. Iglesias | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | 20,000 | | | | | $ | 11.50 | | | | | | | | | | | | | | | | | | 12/31/2015 | | | | | | N/A | | |
Abel L. Iglesias | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | 15,000 | | | | | $ | 12.75 | | | | | | | | | | | | | | | | | | 11/15/2016 | | | | | | N/A | | |
Abel L. Iglesias | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | 25,000 | | | | | $ | 15.00 | | | | | | | | | | | | | | | | | | 12/31/2017 | | | | | | N/A | | |
Abel L. Iglesias | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | 27,500 | | | | | $ | 18.25 | | | | | | | | | | | | | | | | | | 12/31/2018 | | | | | | N/A | | |
Abel L. Iglesias | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,096 | | | | | $ | 20,000 | | | | | | 7/15/2019 | | | | | | N/A | | |
Abel L. Iglesias | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 7,500 | | | | | $ | 142,500 | | | | | | 12/31/2019 | | | | | | N/A | | |
Ryan L. Gorney | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 5,000 | | | | | $ | 95,000 | | | | | | 12/31/2019 | | | | | | N/A | | |
Name | | | Fees earned or paid in cash | | | Stock Awards | | | Total Compensation | | |||||||||
Rolando DiGasbarro(1) | | | | $ | 24,000 | | | | | $ | 10,000 | | | | | $ | 34,000 | | |
Carlos M. Garcia(2) | | | | | 24,000 | | | | | | 10,000 | | | | | | 34,000 | | |
Jon L. Gorney(3) | | | | | 24,000 | | | | | | 10,000 | | | | | | 34,000 | | |
Herbert Martens, Jr.(4) | | | | | 24,000 | | | | | | 10,000 | | | | | | 34,000 | | |
Dr. Lawrence Schimmel(5) | | | | | 24,000 | | | | | | 10,000 | | | | | | 34,000 | | |
Anton V. Schutz(6) | | | | | 24,000 | | | | | | 10,000 | | | | | | 34,000 | | |
| | Class A Common Stock Beneficially Owned Prior to this Offering | | Class B Common Stock Beneficially Owned Prior to this Offering | | | % of Total Voting Power before the Offering | | Shares of Class A Common Stock Offered | | | Class A Common Stock Beneficially Owned After this Offering | | | Class A Common Stock Beneficially Owned Prior to this Offering | | Class B Common Stock Beneficially Owned Prior to this Offering | | | % of Total Voting Power before the Offering | | | Class A Common Stock Beneficially Owned After this Offering | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name and Address of Beneficial Owner | | Number | | Percent of Class A | | Number | | Percent of Class B | | Number | | Percent (if option not exercised) | | Percent (if option is exercised) | | Pro Forma Percent(1) | | | Number | | Percent of Class A | | Number | | Percent of Class B | | Number | | Percent (if option not exercised) | | Percent (if option is exercised) | | Pro Forma Percent(1) | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5% or Greater Shareholders | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BayBoston Capital L.P.(2) | | | | 422,890 | | | | | 8.5% | | | | | 60,880 | | | | | 8.1% | | | | | 8.5% | | | | | 241,885 | | | | | 181,005 | | | | | [ ]% | | | | | [ ]% | | | | | [ ]% | | | | | | 423,416 | | | | | 8.3% | | | | | 60,880 | | | | | 8.1% | | | | | 8.3% | | | | | 423,416 | | | | | 5.2% | | | | | 4.9% | | | | | 3.3% | | | |||||||||||||||||||
1280 Center Street, Suite 2 Newton Center, MA 02459 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
EJF Capital, LLC(3) | | | | 499,981 | | | | | 10.0% | | | | | 340,753 | | | | | 45.3% | | | | | 10.0% | | | | | — | | | | | 499,981 | | | | | [ ]% | | | | | [ ]% | | | | | [ ]% | | | | | | 499,981 | | | | | 9.8% | | | | | 340,753 | | | | | 45.3% | | | | | 9.8% | | | | | 499,981 | | | | | 6.1% | | | | | 5.8% | | | | | 3.9% | | | |||||||||||||||||||
2107 Wilson Blvd., Suite 240 Arlington, VA 22201 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
Emerald Advisers, Inc.(4) | | | | 279,177 | | | | | 5.6% | | | | | — | | | | | * | | | | | 5.6% | | | | | — | | | | | 279,177 | | | | | [ ]% | | | | | [ ]% | | | | | [ ]% | | | | | | 279,177 | | | | | 5.5% | | | | | — | | | | | * | | | | | 5.5% | | | | | 279,177 | | | | | 3.4% | | | | | 3.2% | | | | | 2.2% | | | |||||||||||||||||||
3195 Oregon Pike Leola, PA 17540 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
RMB Capital Management, LLC(5) | | | | 499,981 | | | | | 10.0% | | | | | 350,551 | | | | | 46.6% | | | | | 10.0% | | | | | — | | | | | 499,981 | | | | | [ ]% | | | | | [ ]% | | | | | [ ]% | | | | | | 499,981 | | | | | 9.8% | | | | | 350,551 | | | | | 46.6% | | | | | 9.8% | | | | | 499,981 | | | | | 6.1% | | | | | 5.8% | | | | | 3.9% | | | |||||||||||||||||||
115 S. La Salle St. Chicago, IL 60603 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
Stephens Professional Holding LLC(6) | | | | 279,177 | | | | | 5.6% | | | | | — | | | | | * | | | | | 5.6% | | | | | — | | | | | 279,177 | | | | | [ ]% | | | | | [ ]% | | | | | [ ]% | | | | | | 279,177 | | | | | 5.5% | | | | | — | | | | | * | | | | | 5.5% | | | | | 279,177 | | | | | 3.4% | | | | | 3.2% | | | | | 2.2% | | | |||||||||||||||||||
111 Center Street Little Rock, AR 72201 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
Named Executive Officers and Directors | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rolando DiGasbarro(7) | | | | 22,734 | | | | | * | | | | | — | | | | | * | | | | | * | | | | | — | | | | | 22,734 | | | | | * | | | | | * | | | | | * | | | | | | 23,260 | | | | | * | | | | | — | | | | | * | | | | | * | | | | | 23,260 | | | | | * | | | | | * | | | | | * | | | |||||||||||||||||||
Carlos M. Garcia(8) | | | | 422,890 | | | | | 8.5% | | | | | 60,880 | | | | | 8.1% | | | | | 8.5% | | | | | 241,885 | | | | | 181,005 | | | | | [ ]% | | | | | [ ]% | | | | | [ ]% | | | | | | 423,416 | | | | | 8.3% | | | | | 60,880 | | | | | 8.1% | | | | | 8.3% | | | | | 423,416 | | | | | 5.2% | | | | | 4.9% | | | | | 3.3% | | | |||||||||||||||||||
Jon L. Gorney | | | | 5,479 | | | | | * | | | | | — | | | | | * | | | | | * | | | | | — | | | | | 5,479 | | | | | * | | | | | * | | | | | * | | | | | | 6,005 | | | | | * | | | | | — | | | | | * | | | | | * | | | | | 6,005 | | | | | * | | | | | * | | | | | * | | | |||||||||||||||||||
Ryan L. Gorney | | | | 3,103 | | | | | * | | | | | — | | | | | * | | | | | * | | | | | — | | | | | 3,103 | | | | | * | | | | | * | | | | | * | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Abel L. Iglesias(9) | | | | 1,906 | | | | | * | | | | | — | | | | | * | | | | | * | | | | | — | | | | | 1,906 | | | | | * | | | | | * | | | | | * | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Herbert Martens(10) | | | | 41,210 | | | | | * | | | | | — | | | | | * | | | | | * | | | | | — | | | | | 41,210 | | | | | * | | | | | * | | | | | * | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dr. Lawrence Schimmel, M.D.(11) | | | | 57,268 | | | | | 1.1% | | | | | — | | | | | * | | | | | 1.2% | | | | | — | | | | | 57,268 | | | | | * | | | | | * | | | | | * | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Daniel R. Sheehan(12) | | | | 58,734 | | | | | 1.2% | | | | | — | | | | | * | | | | | 1.2% | | | | | — | | | | | 58,734 | | | | | * | | | | | * | | | | | * | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Anton V. Schutz(13) | | | | 499,981 | | | | | 10.0% | | | | | 350,551 | | | | | 46.6% | | | | | 10.0% | | | | | — | | | | | 499,981 | | | | | [ ]% | | | | | [ ]% | | | | | [ ]% | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ryan L. Gorney(10) | | | | 8,103 | | | | | * | | | | | — | | | | | * | | | | | * | | | | | 8,103 | | | | | * | | | | | * | | | | | * | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Abel L. Iglesias(11) | | | | 9,406 | | | | | * | | | | | — | | | | | * | | | | | * | | | | | 9,406 | | | | | * | | | | | * | | | | | * | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Herbert Martens(12) | | | | 41,736 | | | | | * | | | | | — | | | | | * | | | | | * | | | | | 41,736 | | | | | * | | | | | * | | | | | * | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dr. Lawrence Schimmel, M.D.(13) | | | | 57,794 | | | | | 1.1% | | | | | — | | | | | * | | | | | 1.1% | | | | | 57,794 | | | | | * | | | | | * | | | | | * | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Daniel R. Sheehan(14) | | | | 93,734 | | | | | 1.8% | | | | | — | | | | | * | | | | | 1.8% | | | | | 93,734 | | | | | 1.1% | | | | | 1.1% | | | | | * | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Anton V. Schutz(15) | | | | 500,507 | | | | | 9.8% | | | | | 350,551 | | | | | 46.6% | | | | | 9.8% | | | | | 500,507 | | | | | 6.1% | | | | | 5.7% | | | | | 3.9% | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All Directors and Executive Officers as a Group (10 Persons) | | | | 1,115,716 | | | | | 22.1% | | | | | 411,431 | | | | | 54.7% | | | | | 22.2% | | | | | 241,885 | | | | | 873,831 | | | | | [ ]% | | | | | [ ]% | | | | | [ ]% | | | | | | 1,173,877 | | | | | 22.8% | | | | | 411,431 | | | | | 54.7% | | | | | 22.8% | | | | | 1,173,887 | | | | | 14.2% | | | | | 13.5% | | | | | 9.1% | | |
| | | Actual | | | Minimum for capital adequacy | | | Minimum to be well capitalized | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Amount | | | Ratio | | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||||||||
September 30, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total risk-based capital ratio | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bank | | | | $ | 84,082 | | | | | | 12.4% | | | | | $ | 54,424 | | | | | | 8.0% | | | | | $ | 68,030 | | | | | | 10.0% | | |
Company | | | | | 85,091 | | | | | | 12.5% | | | | | | 54,424 | | | | | | 8.0% | | | | | | N/A | | | | | | N/A | | |
Tier 1 risk-based capital ratio | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bank | | | | | 77,026 | | | | | | 11.3% | | | | | | 40,818 | | | | | | 6.0% | | | | | | 54,424 | | | | | | 8.0% | | |
Company | | | | | 78,036 | | | | | | 11.5% | | | | | | 40,818 | | | | | | 6.0% | | | | | | N/A | | | | | | N/A | | |
Tier1 leverage ratio | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bank | | | | | 77,026 | | | | | | 8.3% | | | | | | 33,713 | | | | | | 4.0% | | | | | | 46,240 | | | | | | 5.0% | | |
Company | | | | | 78,036 | | | | | | 8.4% | | | | | | 33,713 | | | | | | 4.0% | | | | | | N/A | | | | | | N/A | | |
Common equity tier 1 capital ratio | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bank | | | | | 77,026 | | | | | | 11.3% | | | | | | 30,614 | | | | | | 4.5% | | | | | | 44,220 | | | | | | 6.5% | | |
Company | | | | | 78,036 | | | | | | 11.5% | | | | | | 30,614 | | | | | | 4.5% | | | | | | N/A | | | | | | N/A | | |
| | | Number of Shares | | |||
Stephens Inc. | | | | | |||
Keefe, Bruyette & Woods, Inc. | | | | | |||
Hovde Group, LLC | | | | | | | |
Total | | | | | 3,100,000 | | |
| | | Per share | | | No Exercise | | | Full Exercise | | |||||||||
Initial public offering price | | | | $ | | | | | $ | | | | | $ | | | |||
Underwriting discount | | | | | | | | | | | | | | | | | | | |
Proceeds to us, before expenses | | | | | | | | | | | | | | | | | | | |
| Interim Financial Statements | | | |||||
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-22 | | | |
| Annual Financial Statements | | | |||||
| | | | | F-23 | | | |
| | | | | F-24 | | | |
| | | | | F-25 | | | |
| | | | | F-26 | | | |
| | | | | F-27 | | |
| | | September 30, 2019 | | | December 31, 2018 | | ||||||
ASSETS | | | | | | | | | | | | | |
Cash and due from banks | | | | $ | 18,870 | | | | | $ | 10,451 | | |
Interest-bearing deposits | | | | | 85,227 | | | | | | 54,391 | | |
Federal funds sold | | | | | 26,398 | | | | | | 22,041 | | |
Cash and cash equivalents | | | | | 130,495 | | | | | | 86,883 | | |
Securities available for sale, at fair value | | | | | 28,236 | | | | | | 19,585 | | |
Securities held to maturity (fair value Sept 30, 2019 – $236; fair value Dec 31, 2018 – $265) | | | | | 224 | | | | | | 259 | | |
Equity securities | | | | | 975 | | | | | | 942 | | |
Loans, net of allowance of $6,449 and $5,685 as of September 30, 2019 and December 31, 2018, respectively | | | | | 764,663 | | | | | | 601,480 | | |
Federal Home Loan Bank stock, at cost | | | | | 2,782 | | | | | | 2,192 | | |
Federal Reserve Bank stock, at cost | | | | | 2,001 | | | | | | 1,472 | | |
Accrued interest receivable | | | | | 2,451 | | | | | | 1,979 | | |
Premises and equipment, net | | | | | 3,999 | | | | | | 3,349 | | |
Company owned life insurance | | | | | 16,728 | | | | | | 8,449 | | |
Deferred tax asset | | | | | 1,627 | | | | | | 1,750 | | |
Other assets | | | | | 9,012 | | | | | | 1,283 | | |
| | | | $ | 963,193 | | | | | $ | 729,625 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | | |
Demand – non-interest bearing | | | | $ | 187,927 | | | | | $ | 130,245 | | |
Money market, NOW accounts, and savings accounts | | | | | 523,155 | | | | | | 379,479 | | |
Time deposits | | | | | 111,983 | | | | | | 93,578 | | |
Total deposits | | | | | 823,065 | | | | | | 603,302 | | |
Federal Home Loan Bank advances | | | | | 50,000 | | | | | | 40,000 | | |
Official checks | | | | | 2,178 | | | | | | 1,958 | | |
Income taxes payable | | | | | 144 | | | | | | 37 | | |
Accrued interest and other liabilities | | | | | 9,834 | | | | | | 4,647 | | |
Total liabilities | | | | | 885,221 | | | | | | 649,944 | | |
Commitments and contingent liabilities | | | | | | | | | | | | | |
Stockholders’ equity | | | | | | | | | | | | | |
Preferred stock, 10,000,000 shares authorized, none issued | | | | | — | | | | | | — | | |
Class A Voting Common stock, $0.01 par value; 50,000,000 shares authorized, 4,988,302 and 5,171,700 shares issued and outstanding as of September 30, 2019 and December 31, 2018 | | | | | 53 | | | | | | 52 | | |
Class B Non-Voting Common stock, $0.01 par value; 10,000,000 shares authorized, 752,184 shares issued and outstanding as of September 30, 2019 and December 31, 2018 | | | | | 7 | | | | | | 7 | | |
Treasury stock, at cost | | | | | (4,155) | | | | | | (220) | | |
Additional paid-in capital | | | | | 76,667 | | | | | | 76,152 | | |
Retained earnings | | | | | 5,463 | | | | | | 4,115 | | |
Accumulated other comprehensive loss | | | | | (63) | | | | | | (425) | | |
Total stockholders’ equity | | | | | 77,972 | | | | | | 79,681 | | |
| | | | $ | 963,193 | | | | | $ | 729,625 | | |
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | | ||||||||||||||||||
| | | 2019 | | | 2018 | | | 2019 | | | 2018 | | ||||||||||||
Interest income | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans, including fees | | | | $ | 9,502 | | | | | $ | 6,671 | | | | | $ | 26,289 | | | | | $ | 18,015 | | |
Taxable securities | | | | | 172 | | | | | | 160 | | | | | | 504 | | | | | | 463 | | |
Dividend income on restricted stock | | | | | 73 | | | | | | 70 | | | | | | 200 | | | | | | 156 | | |
Other | | | | | 583 | | | | | | 399 | | | | | | 1,607 | | | | | | 808 | | |
Total interest income | | | | | 10,330 | | | | | | 7,300 | | | | | | 28,600 | | | | | | 19,442 | | |
Interest expense | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | | 2,789 | | | | | | 1,392 | | | | | | 7,200 | | | | | | 3,332 | | |
Federal Home Loan Bank advances | | | | | 288 | | | | | | 225 | | | | | | 795 | | | | | | 503 | | |
Total interest expense | | | | | 3,077 | | | | | | 1,617 | | | | | | 7,995 | | | | | | 3,835 | | |
Net interest income | | | | | 7,253 | | | | | | 5,683 | | | | | | 20,605 | | | | | | 15,607 | | |
Provision for loan losses | | | | | 380 | | | | | | 300 | | | | | | 762 | | | | | | 790 | | |
Net interest income after provision for loan losses | | | | | 6,873 | | | | | | 5,383 | | | | | | 19,843 | | | | | | 14,817 | | |
Non-interest income | | | | | | | | | | | | | | | | | | | | | | | | | |
Service charges on deposit accounts | | | | | 399 | | | | | | 152 | | | | | | 542 | | | | | | 437 | | |
Income from Company owned life insurance | | | | | 136 | | | | | | 71 | | | | | | 278 | | | | | | 216 | | |
Gain on sale of securities | | | | | — | | | | | | — | | | | | | 3 | | | | | | — | | |
Other | | | | | 309 | | | | | | 191 | | | | | | 1,304 | | | | | | 665 | | |
Total non-interest income | | | | | 844 | | | | | | 414 | | | | | | 2,127 | | | | | | 1,318 | | |
Non-interest expense | | | | | | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | | | 4,662 | | | | | | 3,112 | | | | | | 13,534 | | | | | | 9,331 | | |
Occupancy and equipment | | | | | 701 | | | | | | 497 | | | | | | 1,824 | | | | | | 1,400 | | |
Data processing | | | | | 165 | | | | | | 153 | | | | | | 489 | | | | | | 466 | | |
Marketing | | | | | 128 | | | | | | 60 | | | | | | 400 | | | | | | 279 | | |
Professional fees | | | | | 524 | | | | | | 128 | | | | | | 1,106 | | | | | | 400 | | |
Regulatory assessments | | | | | 46 | | | | | | 149 | | | | | | 353 | | | | | | 402 | | |
Other | | | | | 815 | | | | | | 884 | | | | | | 2,382 | | | | | | 1,928 | | |
Total non-interest expense | | | | | 7,041 | | | | | | 4,983 | | | | | | 20,088 | | | | | | 14,206 | | |
Income before income taxes | | | | | 676 | | | | | | 814 | | | | | | 1,882 | | | | | | 1,929 | | |
Income tax provision | | | | | (182) | | | | | | (240) | | | | | | (534) | | | | | | (609) | | |
Net income | | | | | 494 | | | | | | 574 | | | | | | 1,348 | | | | | | 1,320 | | |
Other comprehensive income: | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized holding gain (loss) on securities available for sale | | | | | 1 | | | | | | (22) | | | | | | 485 | | | | | | (224) | | |
Tax effect | | | | | — | | | | | | 6 | | | | | | (123) | | | | | | 57 | | |
Other comprehensive loss, net of tax | | | | | 1 | | | | | | (16) | | | | | | 362 | | | | | | (167) | | |
Comprehensive income | | | | $ | 495 | | | | | $ | 558 | | | | | $ | 1,710 | | | | | $ | 1,153 | | |
Earnings per share: | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | | $ | 0.09 | | | | | $ | 0.12 | | | | | $ | 0.23 | | | | | $ | 0.27 | | |
Diluted | | | | $ | 0.08 | | | | | $ | 0.11 | | | | | $ | 0.22 | | | | | $ | 0.26 | | |
| | | Preferred Stock | | | Common Stock | | | Treasury Stock | | | Additional Paid-in Capital | | | Retained Earnings | | | Accumulated Other Comprehensive Loss | | | Total | | |||||||||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | | | | | — | | | | | $ | — | | | | | | 5,937,987 | | | | | $ | 60 | | | | | $ | (655) | | | | | $ | 76,612 | | | | | $ | 4,969 | | | | | $ | (64) | | | | | $ | 80,922 | | |
Issuance of Common Stock, net of cost | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Employee stock purchase plan | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 30 | | | | | | — | | | | | | — | | | | | | 30 | | |
Repurchase Treasury Stock | | | | | — | | | | | | — | | | | | | (200,000) | | | | | | — | | | | | | (3,500) | | | | | | — | | | | | | — | | | | | | — | | | | | | (3,500) | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 494 | | | | | | — | | | | | | 494 | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1 | | | | | | 1 | | |
Stock based compensation | | | | | — | | | | | | — | | | | | | 2,499 | | | | | | — | | | | | | — | | | | | | 25 | | | | | | — | | | | | | — | | | | | | 25 | | |
Balance at September 30, 2019 | | | | | — | | | | | | — | | | | | | 5,740,486 | | | | | | 60 | | | | | | (4,155) | | | | | | 76,667 | | | | | | 5,463 | | | | | | (63) | | | | | | 77,972 | | |
Balance at June 30, 2018 | | | | | — | | | | | $ | — | | | | | | 4,818,267 | | | | | $ | 48 | | | | | $ | (220) | | | | | $ | 56,025 | | | | | $ | 2,755 | | | | | $ | (353) | | | | | $ | 58,255 | | |
Issuance of Common Stock, net of cost | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Employee stock purchase plan | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 27 | | | | | | — | | | | | | — | | | | | | 27 | | |
Repurchase Treasury Stock | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 574 | | | | | | — | | | | | | 574 | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (16) | | | | | | (16) | | |
Stock based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 11 | | | | | | — | | | | | | — | | | | | | 11 | | |
Balance at September 30, 2018 | | | | | — | | | | | $ | — | | | | | | 4,818,267 | | | | | $ | 48 | | | | | $ | (220) | | | | | $ | 56,063 | | | | | $ | 3,329 | | | | | $ | (369) | | | | | $ | 58,851 | | |
Balance at December 31, 2018 | | | | | — | | | | | $ | — | | | | | | 5,923,884 | | | | | $ | 59 | | | | | $ | (220) | | | | | $ | 76,152 | | | | | $ | 4,115 | | | | | $ | (425) | | | | | $ | 79,681 | | |
Issuance of Common Stock, net of cost | | | | | — | | | | | | — | | | | | | 39,103 | | | | | | 1 | | | | | | — | | | | | | 385 | | | | | | — | | | | | | — | | | | | | 386 | | |
Employee stock purchase plan | | | | | — | | | | | | — | | | | | | 2,499 | | | | | | — | | | | | | — | | | | | | 130 | | | | | | — | | | | | | — | | | | | | 130 | | |
Repurchase Treasury Stock | | | | | — | | | | | | — | | | | | | (225,000) | | | | | | — | | | | | | (3,935) | | | | | | — | | | | | | — | | | | | | — | | | | | | (3,935) | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,348 | | | | | | — | | | | | | 1,348 | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 362 | | | | | | 362 | | |
Stock based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balance at September 30, 2019 | | | | | — | | | | | | — | | | | | | 5,740,486 | | | | | | 60 | | | | | | (4,155) | | | | | | 76,667 | | | | | | 5,463 | | | | | | (63) | | | | | | 77,972 | | |
Balance at December 31, 2017 | | | | | — | | | | | $ | — | | | | | | 4,818,267 | | | | | $ | 48 | | | | | $ | (220) | | | | | $ | 55,957 | | | | | $ | 2,009 | | | | | $ | (202) | | | | | $ | 57,592 | | |
Issuance of Common Stock, net of cost | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Employee stock purchase plan | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 70 | | | | | | — | | | | | | — | | | | | | 70 | | |
Repurchase Treasury Stock | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,320 | | | | | | — | | | | | | 1,320 | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (167) | | | | | | (167) | | |
Stock based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 36 | | | | | | — | | | | | | — | | | | | | 36 | | |
Balance at September 30, 2018 | | | | | — | | | | | $ | — | | | | | | 4,818,267 | | | | | $ | 48 | | | | | $ | (220) | | | | | $ | 56,063 | | | | | $ | 3,329 | | | | | $ | (369) | | | | | $ | 58,851 | | |
| | | Nine Months Ended September 30, | | |||||||||
| | | 2019 | | | 2018 | | ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net income | | | | $ | 1,348 | | | | | $ | 1,320 | | |
Adjustments to reconcile net income to net cash from operating activities | | | | | | | | | | | | | |
Provision for loan losses | | | | | 762 | | | | | | 790 | | |
Deferred income tax benefit | | | | | 199 | | | | | | 68 | | |
Depreciation and amortization | | | | | 948 | | | | | | 582 | | |
Gain on sale of securities | | | | | 3 | | | | | | — | | |
Change in fair value of equity securities | | | | | (33) | | | | | | 9 | | |
Net amortization of securities | | | | | (107) | | | | | | 409 | | |
Net amortization on deferred loan fees | | | | | 487 | | | | | | 478 | | |
Employee stock purchase plan | | | | | 87 | | | | | | — | | |
Stock compensation | | | | | — | | | | | | 36 | | |
Income from company owned life insurance | | | | | (279) | | | | | | (178) | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Accrued interest receivable | | | | | (472) | | | | | | (491) | | |
Other assets | | | | | (656) | | | | | | (134) | | |
Official checks, accrued interest payable, and other liabilities | | | | | (1,557) | | | | | | 7,121 | | |
Net cash from operating activities | | | | | 730 | | | | | | 10,010 | | |
Cash flows from investing activities | | | | ||||||||||
Proceeds from maturities and paydowns of securities available for sale | | | | | 4,247 | | | | | | 4,835 | | |
Proceeds from paydowns of securities held to maturity | | | | | 34 | | | | | | 44 | | |
Purchase of securities available for sale | | | | | (17,008) | | | | | | — | | |
Sale of securities available for sale | | | | | 4,501 | | | | | | — | | |
Loans originations, net of principal repayments | | | | | (164,432) | | | | | | (123,245) | | |
Purchase of Federal Reserve Bank stock | | �� | | | (529) | | | | | | (345) | | |
Purchase of Federal Home Loan Bank Stock | | | | | (590) | | | | | | (996) | | |
Proceeds of Federal Home Loan Bank Stock | | | | | — | | | | | | 213 | | |
Purchase of company owned life insurance | | | | | (8,000) | | | | | | — | | |
Purchases of premises and equipment | | | | | (1,598) | | | | | | (1,445) | | |
Net cash used in investing activities | | | | | (183,375) | | | | | | (120,939) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Net increase in deposits | | | | | 219,763 | | | | | | 135,204 | | |
Proceeds from issuance of stock | | | | | 386 | | | | | | — | | |
Issuance costs of common stock | | | | | 43 | | | | | | 70 | | |
Purchase of treasury stock | | | | | (3,935) | | | | | | — | | |
Proceeds from Federal Home Loan Bank advances | | | | | 20,000 | | | | | | 20,000 | | |
Repayments of Federal Home Loan advances | | | | | (10,000) | | | | | | (5,000) | | |
Net cash provided by financing activities | | | | | 226,257 | | | | | | 150,274 | | |
Increase in cash and cash equivalents | | | | | 43,612 | | | | | | 39,345 | | |
Cash and cash equivalents at beginning of year | | | | | 86,883 | | | | | | 37,126 | | |
Cash and cash equivalents at end of year | | | | $ | 130,495 | | | | | $ | 76,471 | | |
Supplemental cash flow information: | | | | | | | | | | | | | |
Cash paid during the year for interest | | | | $ | 7,985 | | | | | $ | 3,678 | | |
Cash paid during the year for taxes | | | | $ | 637 | | | | | $ | 585 | | |
Supplemental noncash disclosures: | | | | | | | | | | | | | |
Other comprehensive loss – change in unrealized loss on securities available for sale, net of tax | | | | $ | 362 | | | | | $ | (168) | | |
Adoption of right of use asset – lease recognition standard | | | | $ | 5,673 | | | | | $ | — | | |
| ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) | | |||
| Description | | | In June 2016, FASB issued guidance to replace the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (CECL) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables and held to maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (i.e. loan commitments, standby letters of credit, financial guarantees and other similar instruments). | |
| Date of Adoption | | | For PBEs that are non-SEC filers and for SEC filers that are considered emerging growth companies, it is effective for January 1, 2023. | |
| Effect on the Consolidated Financial Statements | | | The Company’s management is in the process of evaluating and implementing changes to credit loss estimation models and related processes. Updates to business processes and the documentation of accounting policy decisions are ongoing. The company may recognize an increase in the allowance for credit losses upon adoption, recorded as a one-time cumulative adjustment to retained earnings. However, the magnitude of the impact on the Company’s consolidated financial statements has not yet been determined. The Company will adopt this accounting standard effective January 1, 2023. | |
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | | ||||||||||||||||||
| | | 2019 | | | 2018 | | | 2019 | | | 2018 | | ||||||||||||
Basic earnings per share: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Income | | | | $ | 494 | | | | | $ | 574 | | | | | $ | 1,348 | | | | | $ | 1,320 | | |
Total weighted average common stock outstanding | | | | | 5,807 | | | | | | 4,818 | | | | | | 5,883 | | | | | | 4,818 | | |
Net income per share | | | | $ | 0.09 | | | | | $ | 0.12 | | | | | $ | 0.23 | | | | | $ | 0.27 | | |
Diluted earnings per share: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Income | | | | $ | 494 | | | | | $ | 574 | | | | | $ | 1,348 | | | | | $ | 1,320 | | |
Total weighted average common stock outstanding | | | | | 5,807 | | | | | | 4,818 | | | | | | 5,883 | | | | | | 4,818 | | |
Add: Dilutive effect of employee stock options | | | | | 181 | | | | | | 219 | | | | | | 202 | | | | | | 219 | | |
Total weighted average diluted stock outstanding | | | | | 5,988 | | | | | | 5,037 | | | | | | 6,085 | | | | | | 5,037 | | |
Net income per share | | | | $ | 0.08 | | | | | $ | 0.11 | | | | | $ | 0.22 | | | | | $ | 0.26 | | |
|
September 30, 2019 | | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
Available-for-sale | | | | | | | | | | | | | | | | | | | | | | | | | |
Small Business Administration loan pools | | | | $ | 16,139 | | | | | $ | 18 | | | | | $ | (133) | | | | | $ | 16,024 | | |
Mortgage-backed securities | | | | | 5,688 | | | | | | 3 | | | | | | (63) | | | | | | 5,628 | | |
US Agency Securities | | | | | 4,493 | | | | | | 92 | | | | | | — | | | | | | 4,585 | | |
Corporate bonds | | | | | 2,000 | | | | | | — | | | | | | (1) | | | | | | 1,999 | | |
Total available-for-sale | | | | $ | 28,320 | | | | | $ | 113 | | | | | $ | (197) | | | | | $ | 28,236 | | |
|
| | | Amortized Cost | | | Gross Unrecognized Gains | | | Gross Unrecognized Losses | | | Fair Value | | ||||||||||||
Held-to-Maturity | | | | | | | | | | | | | | | | | | | | | | | | | |
Mortgage-backed securities | | | | $ | 224 | | | | | $ | 12 | | | | | $ | — | | | | | $ | 236 | | |
Total Held-to-Maturity | | | | $ | 224 | | | | | $ | 12 | | | | | $ | — | | | | | $ | 236 | | |
|
December 31,2018 | | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
Available-for-sale | | | | | | | | | | | | | | | | | | | | | | | | | |
Small Business Administration loan pools | | | | $ | 7,563 | | | | | $ | — | | | | | $ | (114) | | | | | $ | 7,449 | | |
Mortgage-backed securities | | | | | 6,533 | | | | | | 2 | | | | | | (227) | | | | | | 6,308 | | |
US Agency Securities | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Corporate bonds | | | | | 6,000 | | | | | | 21 | | | | | | (193) | | | | | | 5,828 | | |
Total available-for-sale | | | | $ | 20,096 | | | | | $ | 23 | | | | | $ | (534) | | | | | $ | 19,585 | | |
|
| | | Amortized Cost | | | Gross Unrecognized Gains | | | Gross Unrecognized Losses | | | Fair Value | | ||||||||||||
Held-to-Maturity | | | | | | | | | | | | | | | | | | | | | | | | | |
Mortgage-backed securities | | | | $ | 259 | | | | | $ | 6 | | | | | $ | — | | | | | $ | 265 | | |
Total Held-to-Maturity | | | | $ | 259 | | | | | $ | 6 | | | | | $ | — | | | | | $ | 265 | | |
| | | September 30, 2019 | | |||||||||
| | | Amortized Cost | | | Fair Value | | ||||||
Available-for-sale | | | | | | | | | | | | | |
Due in one year or less | | | | $ | — | | | | | $ | — | | |
Due after one year through five years | | | | | 5,808 | | | | | | 5,844 | | |
Due after five years through ten years | | | | | 13,163 | | | | | | 13,140 | | |
Due after ten years | | | | | 3,661 | | | | | | 3,679 | | |
Mortgage backed securities | | | | | 5,688 | | | | | | 5,573 | | |
Total | | | | $ | 28,320 | | | | | $ | 28,236 | | |
Held-to-maturity | | | | | | | | | | | | | |
Mortgage-backed securities | | | | $ | 224 | | | | | $ | 236 | | |
Total | | | | $ | 224 | | | | | $ | 236 | | |
| | | Less Than 12 Months | | | 12 Months or Longer | | | Total | | |||||||||||||||||||||||||||
September 30, 2019 | | | Fair Value | | | Unrealized Losses | | | Fair Value | | | Unrealized Losses | | | Fair Value | | | Unrealized Losses | | ||||||||||||||||||
Available-for-sale | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
SBA loan pools | | | | $ | 14,651 | | | | | $ | (101) | | | | | $ | 1,373 | | | | | $ | (32) | | | | | $ | 16,024 | | | | | $ | (133) | | |
Mortgage-backed | | | | | — | | | | | | — | | | | | | 4,597 | | | | | | (63) | | | | | | 4,597 | | | | | | (63) | | |
US Agency Securities | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Corporate bonds | | | | | 1,499 | | | | | | (1) | | | | | | 500 | | | | | | — | | | | | | 1,999 | | | | | | (1) | | |
Total available-for-sale | | | | $ | 16,150 | | | | | $ | (102) | | | | | $ | 6,470 | | | | | $ | (95) | | | | | $ | 22,620 | | | | | $ | (197) | | |
|
| | | Less Than 12 Months | | | 12 Months or Longer | | | Total | | |||||||||||||||||||||||||||
December 31, 2018 | | | Fair Value | | | Unrealized Losses | | | Fair Value | | | Unrealized Losses | | | Fair Value | | | Unrealized Losses | | ||||||||||||||||||
Available-for-sale | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
SBA loan pools | | | | $ | 1,212 | | | | | $ | (16) | | | | | $ | 5,934 | | | | | $ | (98) | | | | | $ | 7,146 | | | | | $ | (114) | | |
Mortgage-backed | | | | | — | | | | | | — | | | | | | 5,964 | | | | | | (227) | | | | | | 5,964 | | | | | | (227) | | |
US Agency Securities | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Corporate bonds | | | | | 1,812 | | | | | | (188) | | | | | | 495 | | | | | | (5) | | | | | | 2,307 | | | | | | (193) | | |
Total available-for-sale | | | | $ | 3,024 | | | | | $ | (204) | | | | | $ | 12,393 | | | | | $ | (330) | | | | | $ | 15,417 | | | | | $ | (534) | | |
|
| | | September 30, 2019 | | | December 31, 2018 | | ||||||
Commercial real estate | | | | $ | 262,761 | | | | | $ | 191,930 | | |
Residential real estate | | | | | 349,306 | | | | | | 311,404 | | |
Commercial | | | | | 114,003 | | | | | | 83,276 | | |
Construction and development | | | | | 37,925 | | | | | | 17,608 | | |
Consumer and other loans | | | | | 7,900 | | | | | | 3,244 | | |
| | | | | 771,895 | | | | | | 607,462 | | |
Less – | | | | | | | | | | | | | |
Unearned loan origination fees (costs), net | | | | | (783) | | | | | | (297) | | |
Allowance for loan losses | | | | | (6,449) | | | | | | (5,685) | | |
| | | | $ | 764,663 | | | | | $ | 601,480 | | |
September 30, 2019 | | | 30 – 59 Days Past Due | | | 60 – 89 Days Past Due | | | Greater than 89 Days Past Due | | | Nonaccrual | | | Total Past Due | | | Total Loans Not Past Due | | | Total | | |||||||||||||||||||||
Commercial real estate | | | | $ | — | | | | | $ | — | | | | | $ | 2,446 | | | | | $ | — | | | | | $ | 2,446 | | | | | $ | 260,315 | | | | | $ | 262,761 | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | 487 | | | | | | 487 | | | | | | 348,819 | | | | | | 349,306 | | |
Commercial | | | | | 98 | | | | | | 138 | | | | | | 728 | | | | | | 1,068 | | | | | | 2,032 | | | | | | 111,971 | | | | | | 114,003 | | |
Construction and land dev | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 37,925 | | | | | | 37,925 | | |
Consumer and other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,900 | | | | | | 7,900 | | |
Total | | | | $ | 98 | | | | | $ | 138 | | | | | $ | 3,174 | | | | | $ | 1,555 | | | | | $ | 4,965 | | | | | $ | 766,930 | | | | | $ | 771,895 | | |
December 31, 2018 | | | 30 – 59 Days Past Due | | | 60 – 89 Days Past Due | | | Greater than 89 Days Past Due | | | Nonaccrual | | | Total Past Due | | | Total Loans Not Past Due | | | Total | | |||||||||||||||||||||
Commercial real estate | | | | $ | 2,478 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 2,478 | | | | | $ | 189,452 | | | | | $ | 191,930 | | |
Residential real estate | | | | | 257 | | | | | | — | | | | | | — | | | | | | — | | | | | | 257 | | | | | | 311,147 | | | | | | 311,404 | | |
Commercial | | | | | 1,081 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,081 | | | | | | 82,195 | | | | | | 83,276 | | |
Construction and land dev | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 17,608 | | | | | | 17,608 | | |
Consumer and other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,244 | | | | | | 3,244 | | |
Total | | | | $ | 3,816 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 3,816 | | | | | $ | 603,646 | | | | | $ | 607,462 | | |
September 30, 2019 | | | Pass | | | Special Mention | | | Substandard | | | Doubtful | | | Total | | |||||||||||||||
Commercial real estate | | | | $ | 258,569 | | | | | $ | 1,746 | | | | | $ | 2,446 | | | | | $ | — | | | | | $ | 262,761 | | |
Residential real estate | | | | | 348,549 | | | | | | 757 | | | | | | — | | | | | | — | | | | | | 349,306 | | |
Commercial | | | | | 111,774 | | | | | | 432 | | | | | | 1,797 | | | | | | — | | | | | | 114,003 | | |
Construction and land development | | | | | 37,925 | | | | | | — | | | | | | — | | | | | | — | | | | | | 37,925 | | |
Consumer | | | | | 7,900 | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,900 | | |
Total | | | | $ | 764,717 | | | | | $ | 2,935 | | | | | $ | 4,243 | | | | | $ | — | | | | | $ | 771,895 | | |
|
December 31, 2018 | | | Pass | | | Special Mention | | | Substandard | | | Doubtful | | | Total | | |||||||||||||||
Commercial real estate | | | | $ | 189,228 | | | | | $ | 2,702 | | | | | $ | — | | | | | $ | — | | | | | $ | 191,930 | | |
Residential real estate | | | | | 311,013 | | | | | | 391 | | | | | | — | | | | | | — | | | | | | 311,404 | | |
Commercial | | | | | 82,668 | | | | | | 577 | | | | | | 31 | | | | | | — | | | | | | 83,276 | | |
Construction and land development | | | | | 17,608 | | | | | | — | | | | | | — | | | | | | — | | | | | | 17,608 | | |
Consumer | | | | | 3,244 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,244 | | |
Total | | | | $ | 603,761 | | | | | $ | 3,670 | | | | | $ | 31 | | | | | $ | — | | | | | $ | 607,462 | | |
| | | Commercial Real Estate | | | Residential Real Estate | | | Commercial | | | Construction and land Development | | | Consumer and Other | | | Total | | ||||||||||||||||||
Three months ended September 30, 2019: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 1,311 | | | | | $ | 2,659 | | | | | $ | 1,578 | | | | | $ | 371 | | | | | $ | 150 | | | | | $ | 6,069 | | |
Provision for loan losses | | | | | 477 | | | | | | 633 | | | | | | (542) | | | | | | (116) | | | | | | (72) | | | | | | 380 | | |
Loans charged-off | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Recoveries | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total ending allowance balance | | | | $ | 1,788 | | | | | $ | 3,292 | | | | | $ | 1,036 | | | | | $ | 255 | | | | | $ | 78 | | | | | $ | 6,449 | | |
|
| | | Commercial Real Estate | | | Residential Real Estate | | | Commercial | | | Construction and land Development | | | Consumer and Other | | | Total | | ||||||||||||||||||
Three months ended September 30, 2018: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 1,158 | | | | | $ | 1,543 | | | | | $ | 2,039 | | | | | $ | 235 | | | | | $ | 50 | | | | | $ | 5,025 | | |
Provision for loan losses | | | | | 87 | | | | | | 71 | | | | | | 145 | | | | | | (2) | | | | | | (1) | | | | | | 300 | | |
Loans charged-off | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Recoveries | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total ending allowance balance | | | | $ | 1,245 | | | | | $ | 1,614 | | | | | $ | 2,184 | | | | | $ | 233 | | | | | $ | 49 | | | | | $ | 5,325 | | |
|
| | | Commercial Real Estate | | | Residential Real Estate | | | Commercial | | | Construction and land Development | | | Consumer and Other | | | Total | | ||||||||||||||||||
Nine months ended September 30, 2019: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 1,435 | | | | | $ | 1,822 | | | | | $ | 2,106 | | | | | $ | 262 | | | | | $ | 60 | | | | | $ | 5,685 | | |
Provision for loan losses | | | | | 353 | | | | | | 1,470 | | | | | | (1,070) | | | | | | (7) | | | | | | 16 | | | | | | 762 | | |
Loans charged-off | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Recoveries | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2 | | | | | | 2 | | |
Total ending allowance balance | | | | $ | 1,788 | | | | | $ | 3,292 | | | | | $ | 1,036 | | | | | $ | 255 | | | | | $ | 78 | | | | | $ | 6,449 | | |
|
| | | Commercial Real Estate | | | Residential Real Estate | | | Commercial | | | Construction and land Development | | | Consumer and Other | | | Total | | ||||||||||||||||||
Nine months ended September 30, 2018: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 1,275 | | | | | $ | 1,590 | | | | | $ | 1,170 | | | | | $ | 452 | | | | | $ | 48 | | | | | $ | 4,535 | | |
Provision for loan losses | | | | | (30) | | | | | | 24 | | | | | | 1,014 | | | | | | (219) | | | | | | 1 | | | | | | 790 | | |
Loans charged-off | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Recoveries | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total ending allowance balance | | | | $ | 1,245 | | | | | $ | 1,614 | | | | | $ | 2,184 | | | | | $ | 233 | | | | | $ | 49 | | | | | $ | 5,325 | | |
|
| | | Commercial Real Estate | | | Residential Real Estate | | | Commercial | | | Construction and Land Development | | | Consumer and Other | | | Total | | ||||||||||||||||||
September 30, 2019: | | | | | | | | ||||||||||||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending allowance balance attributable to loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | | | $ | — | | | | | $ | — | | | | | $ | 619 | | | | | $ | — | | | | | $ | — | | | | | $ | 619 | | |
Collectively evaluated for impairment | | | | | 1,788 | | | | | | 3,292 | | | | | | 417 | | | | | | 255 | | | | | | 78 | | | | | | 5,830 | | |
Total ending allowance balance | | | | $ | 1,788 | | | | | $ | 3,292 | | | | | $ | 1,036 | | | | | $ | 255 | | | | | $ | 78 | | | | | $ | 6,449 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | | | | $ | 2,446 | | | | | $ | 863 | | | | | $ | 1,797 | | | | | $ | — | | | | | $ | — | | | | | $ | 5,106 | | |
Loans collectively evaluated for impairment | | | | | 260,331 | | | | | | 348,443 | | | | | | 112,313 | | | | | | 37,925 | | | | | | 7,777 | | | | | | 766,789 | | |
Total ending loans balance | | | | $ | 262,777 | | | | | $ | 349,306 | | | | | $ | 114,110 | | | | | $ | 37,925 | | | | | $ | 7,777 | | | | | $ | 771,895 | | |
December 31, 2018: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending allowance balance attributableto loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Collectively evaluated for impairment | | | | | 1,435 | | | | | | 1,822 | | | | | | 2,106 | | | | | | 262 | | | | | | 60 | | | | | | 5,685 | | |
Total ending allowance balance | | | | $ | 1,435 | | | | | $ | 1,822 | | | | | $ | 2,106 | | | | | $ | 262 | | | | | $ | 60 | | | | | $ | 5,685 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | | | | $ | — | | | | | $ | 357 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 357 | | |
Loans collectively evaluated for impairment | | | | | 191,930 | | | | | | 311,047 | | | | | | 83,276 | | | | | | 17,608 | | | | | | 3,244 | | | | | | 607,105 | | |
Total ending loans balance | | | | $ | 191,930 | | | | | $ | 311,404 | | | | | $ | 83,276 | | | | | $ | 17,608 | | | | | $ | 3,244 | | | | | $ | 607,462 | | |
| | | | | | | | | Fair Value Measurements at September 30, 2019 Using: | | |||||||||||||||
September 30, 2019 | | | Fair Value | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | ||||||||||||
Securities available for sale | | | | | | | | | | | | | | | | | | | | | | | | | |
SBA loans pools | | | | $ | 16,024 | | | | | $ | — | | | | | $ | 16,024 | | | | | $ | — | | |
Mortgage backed securities | | | | | 5,628 | | | | | | — | | | | | | 5,628 | | | | | | — | | |
US Agency Securities | | | | | 4,585 | | | | | | — | | | | | | 4,585 | | | | | | — | | |
Corporate bonds | | | | | 1,999 | | | | | | — | | | | | | 1,999 | | | | | | — | | |
Total | | | | $ | 28,236 | | | | | $ | — | | | | | $ | 28,236 | | | | | $ | — | | |
Equity Securities | | | | | | | | | | | | | | | | | | | | | | | | | |
Mutual funds | | | | $ | 975 | | | | | | — | | | | | $ | 975 | | | | | | — | | |
Total | | | | $ | 975 | | | | | $ | — | | | | | $ | 975 | | | | | $ | — | | |
| | | | | | | | | Fair Value Measurements at December 31, 2018 Using: | | |||||||||||||||
December 31, 2018 | | | Fair Value | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | ||||||||||||
Securities available for sale | | | | | | | | | | | | | | | | | | | | | | | | | |
SBA loans pools | | | | $ | 7,449 | | | | | $ | — | | | | | $ | 7,449 | | | | | $ | — | | |
Mortgage backed securities | | | | | 6,308 | | | | | | — | | | | | | 6,308 | | | | | | — | | |
Corporate bonds | | | | | 5,828 | | | | | | — | | | | | | 5,828 | | | | | | — | | |
Total | | | | $ | 19,585 | | | | | $ | — | | | | | $ | 19,585 | | | | | $ | — | | |
Equity Securities | | | | | | | | | | | | | | | | | | | | | | | | | |
Mutual funds | | | | $ | 942 | | | | | | — | | | | | $ | 942 | | | | | | — | | |
Total | | | | $ | 942 | | | | | $ | — | | | | | $ | 942 | | | | | $ | — | | |
| | | | | | | | | Fair Value Measurements at September 30, 2019 Using: | | |||||||||||||||||||||
(Dollars in thousands) | | | Total at September 30, 2019 | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | | Total Gains (Losses) for the nine months ended September 30, 2019 | | |||||||||||||||
Impaired Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial | | | | | 450 | | | | | | — | | | | | | — | | | | | | 450 | | | | | | (619) | | |
Construction and land development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer and other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 450 | | | | | $ | — | | | | | $ | — | | | | | $ | 450 | | | | | $ | (619) | | |
| | | | | | | | | Fair Value Measurements at December 31, 2018 Using: | | |||||||||||||||||||||
(Dollars in thousands) | | | Total at December 31, 2018 | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | | Total Gains (Losses) | | |||||||||||||||
Impaired Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Construction and land development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | |
Consumer and other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
September 30, 2019 | | | Carrying Amount | | | Fair Value | | | FairValue Hierarchy | | ||||||
Financial Assets: | | | | | | | | | | | | | | | | |
Cash & Due from Banks, including interest bearing deposits | | | | $ | 104,097 | | | | | $ | 104,097 | | | | Level 1 | |
Federal Funds Sold | | | | | 26,398 | | | | | | 26,398 | | | | Level 1 | |
Securities, Available for Sale | | | | | 28,236 | | | | | | 28,236 | | | | Level 2 | |
Securities, Held to Maturity | | | | | 224 | | | | | | 236 | | | | Level 2 | |
Equity securities | | | | | 975 | | | | | | 975 | | | | Level 2 | |
Loans, net | | | | | 764,663 | | | | | | 784,899 | | | | Level 3 | |
Federal Home Loan Bank Stock | | | | | 2,782 | | | | | | N/A | | | | N/A | |
Federal Reserve Bank Stock | | | | | 2,001 | | | | | | N/A | | | | N/A | |
Company Owned Life Insurance | | | | | 16,728 | | | | | | 16,728 | | | | Level 2 | |
Accrued Interest Receivable | | | | | 2,451 | | | | | | 2,451 | | | | Level 3 | |
Financial Liabilities: | | | | | | | | | | | | | | | | |
Deposits | | | | | 823,065 | | | | | | 803,018 | | | | Level 2 | |
Federal Home Loan Bank Advances | | | | | 50,000 | | | | | | 49,359 | | | | Level 2 | |
Accrued Interest Payable | | | | | 353 | | | | | | 353 | | | | Level 2 | |
December 31, 2018 | | | Carrying Amount | | | Fair Value | | | FairValue Hierarchy | | ||||||
Financial Assets: | | | | | | | | | | | | | | | | |
Cash & Due from Banks, including interest bearing deposits | | | | $ | 64,842 | | | | | $ | 64,842 | | | | Level 1 | |
Federal Funds Sold | | | | | 22,041 | | | | | | 22,041 | | | | Level 1 | |
Securities, Available for Sale | | | | | 19,585 | | | | | | 19,585 | | | | Level 2 | |
Securities, Held to Maturity | | | | | 259 | | | | | | 265 | | | | Level 2 | |
Equity securities | | | | | 942 | | | | | | 942 | | | | Level 2 | |
Loans, net | | | | | 601,480 | | | | | | 606,838 | | | | Level 3 | |
Federal Home Loan Bank Stock | | | | | 2,192 | | | | | | N/A | | | | N/A | |
Federal Reserve Bank Stock | | | | | 1,472 | | | | | | N/A | | | | N/A | |
Company Owned Life Insurance | | | | | 8,449 | | | | | | 8,449 | | | | Level 2 | |
Accrued Interest Receivable | | | | | 1,979 | | | | | | 1,979 | | | | Level 3 | |
Financial Liabilities: | | | | | | | | | | | | | | | | |
Deposits | | | | | 603,302 | | | | | | 602,937 | | | | Level 2 | |
Federal Home Loan Bank Advances | | | | | 40,000 | | | | | | 39,834 | | | | Level 2 | |
Accrued Interest Payable | | | | | 342 | | | | | | 342 | | | | Level 2 | |
| | | Three-month period ended September 30, 2019 | | | Nine-month period ended September 30, 2019 | | ||||||
Operating Lease and Interest Cost | | | | | 282 | | | | | | 726 | | |
Variable Lease Cost | | | | | 92 | | | | | | 269 | | |
Total Lease Cost | | | | $ | 374 | | | | | $ | 995 | | |
| | | Three-month period ended September 30, 2019 | | | Nine-month period ended September 30, 2019 | | ||||||
Operating Lease – Operating Cash Flows (Fixed Payments) | | | | | 282 | | | | | | 726 | | |
Operating Lease – Operating Cash Flows (Liability Reduction) | | | | | 239 | | | | | | 442 | | |
New ROU Assets – Operating Leases | | | | | — | | | | | | 411 | | |
Weighted Average Lease Term (Years) – Operating Leases | | | | | | | | | | | 8.06 | | |
Weighted Average Discount Rate – Operating Leases | | | | | | | | | | | 3.82% | | |
| | | September 30, 2019 | | |||
Operating lease payments due: | | | | | | | |
Within one year | | | | $ | 1,060 | | |
After one but within two years | | | | | 1,064 | | |
After two but within three years | | | | | 1,083 | | |
After three but within four years | | | | | 1,115 | | |
After four years but within five years | | | | | 1,022 | | |
After five years | | | | | 2,218 | | |
Total undiscounted cash flows | | | | | 7,562 | | |
Discount on cash flows | | | | | (933) | | |
Total operating lease liabilities | | | | $ | 6,629 | | |
| | | 2018 | | | 2017 | | ||||||
ASSETS | | | | ||||||||||
Cash and due from banks | | | | $ | 10,451 | | | | | $ | 9,012 | | |
Interest-bearing deposits | | | | | 54,391 | | | | | | 11,824 | | |
Federal funds sold | | | | | 22,041 | | | | | | 16,290 | | |
Cash and cash equivalents | | | | | 86,883 | | | | | | 37,126 | | |
Securities available for sale, at fair value | | | | | 19,585 | | | | | | 26,720 | | |
Securities held to maturity (fair value 2018 – $265, 2017 – $325) | | | | | 259 | | | | | | 316 | | |
Equity securities | | | | | 942 | | | | | | — | | |
Loans, net of allowance of $5,685 and $4,535 as of December 31, 2018 and 2017, respectively | | | | | 601,480 | | | | | | 465,587 | | |
Federal Home Loan Bank stock, at cost | | | | | 2,192 | | | | | | 1,409 | | |
Federal Reserve Bank stock, at cost | | | | | 1,472 | | | | | | 1,127 | | |
Accrued interest receivable | | | | | 1,979 | | | | | | 1,407 | | |
Premises and equipment, net | | | | | 3,349 | | | | | | 2,282 | | |
Company owned life insurance | | | | | 8,449 | | | | | | 8,212 | | |
Deferred tax asset | | | | | 1,750 | | | | | | 1,447 | | |
Other assets | | | | | 1,283 | | | | | | 1,388 | | |
| | | | $ | 729,625 | | | | | $ | 547,021 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | ||||||||||
Deposits | | | | ||||||||||
Demand – non-interest bearing | | | | $ | 130,245 | | | | | $ | 100,847 | | |
Money market, NOW accounts, and savings accounts | | | | | 379,479 | | | | | | 283,025 | | |
Time deposits | | | | | 93,578 | | | | | | 75,302 | | |
Total deposits | | | | | 603,302 | | | | | | 459,174 | | |
Federal Home Loan Bank advances | | | | | 40,000 | | | | | | 25,000 | | |
Official checks | | | | | 1,958 | | | | | | 1,169 | | |
Income taxes payable | | | | | 37 | | | | | | 207 | | |
Accrued interest and other liabilities | | | | | 4,647 | | | | | | 3,879 | | |
Total liabilities | | | | | 649,944 | | | | | | 489,429 | | |
Commitments and contingent liabilities | | | | ||||||||||
Stockholders’ equity | | | | ||||||||||
Preferred stock, 10,000,000 shares authorized, none issued | | | | | — | | | | | | — | | |
Class A Voting Common stock, $0.01 par value; 50,000,000 shares authorized, 5,171,700 and 4,276,219 shares issued and outstanding as of December 31, 2018 and 2017 | | | | | 52 | | | | | | 43 | | |
Class B Non-Voting Common stock, $0.01 par value; 10,000,000 shares authorized, 752,184 and 542,048 shares issued and outstanding as of December 31, 2018 and 2017 | | | | | 7 | | | | | | 5 | | |
Treasury stock, at cost | | | | | (220) | | | | | | (220) | | |
Additional paid-in capital | | | | | 76,152 | | | | | | 55,957 | | |
Retained earnings | | | | | 4,115 | | | | | | 2,009 | | |
Accumulated other comprehensive loss | | | | | (425) | | | | | | (202) | | |
Total stockholders’ equity | | | | | 79,681 | | | | | | 57,592 | | |
| | | | $ | 729,625 | | | | | $ | 547,021 | | |
| | | 2018 | | | 2017 | | ||||||
Interest income | | | | ||||||||||
Loans, including fees | | | | $ | 25,633 | | | | | $ | 17,857 | | |
Taxable securities | | | | | 614 | | | | | | 605 | | |
Tax-exempt securities | | | | | — | | | | | | — | | |
Dividend income on restricted stock | | | | | 215 | | | | | | 118 | | |
Other | | | | | 1,288 | | | | | | 277 | | |
Total interest income | | | | | 27,750 | | | | | | 18,857 | | |
Interest expense | | | | ||||||||||
Deposits | | | | | 5,104 | | | | | | 2,634 | | |
Federal Home Loan Bank advances | | | | | 733 | | | | | | 235 | | |
Total interest expense | | | | | 5,837 | | | | | | 2,869 | | |
Net interest income | | | | | 21,913 | | | | | | 15,988 | | |
Provision for loan losses | | | | | 1,150 | | | | | | 991 | | |
Net interest income after provision for loan losses | | | | | 20,763 | | | | | | 14,997 | | |
Non-interest income | | | | ||||||||||
Service charges on deposit accounts | | | | | 283 | | | | | | 194 | | |
Income from Company owned life insurance | | | | | 288 | | | | | | 306 | | |
Other | | | | | 1,303 | | | | | | 1,286 | | |
Total non-interest income | | | | | 1,874 | | | | | | 1,786 | | |
Non-interest expense | | | | ||||||||||
Salaries and employee benefits | | | | | 13,538 | | | | | | 8,672 | | |
Occupancy and equipment | | | | | 1,872 | | | | | | 1,473 | | |
Data processing | | | | | 624 | | | | | | 524 | | |
Marketing | | | | | 430 | | | | | | 180 | | |
Professional fees | | | | | 693 | | | | | | 396 | | |
Regulatory assessments | | | | | 535 | | | | | | 385 | | |
Other | | | | | 2,170 | | | | | | 1,495 | | |
Total non-interest expense | | | | | 19,862 | | | | | | 13,125 | | |
Income before income taxes | | | | | 2,775 | | | | | | 3,658 | | |
Income tax provision | | | | | (669) | | | | | | (1,844) | | |
Net income | | | | | 2,106 | | | | | | 1,814 | | |
Earnings per share: | | | | ||||||||||
Basic | | | | $ | 0.43 | | | | | $ | 0.39 | | |
Diluted | | | | $ | 0.41 | | | | | $ | 0.37 | | |
Other comprehensive income: | | | | ||||||||||
Unrealized holding gain (loss) on securities available for sale | | | | �� | (299) | | | | | | 1 | | |
Tax effect | | | | | 76 | | | | | | (33) | | |
Other comprehensive loss, net of tax | | | | | (223) | | | | | | (32) | | |
Comprehensive income | | | | $ | 1,883 | | | | | $ | 1,782 | | |
| | | Preferred Stock | | | Common Stock | | | Treasury Stock | | | Additional Paid-in Capital | | | Retained Earnings | | | Accumulated Other Comprehensive Loss | | | Total | | |||||||||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2017 | | | | | — | | | | | $ | — | | | | | | 3,513,478 | | | | | $ | 35 | | | | | $ | (220) | | | | | $ | 37,066 | | | | | $ | 195 | | | | | $ | (170) | | | | | $ | 36,905 | | |
Issuance of common stock, net of Issuance cost | | | | | — | | | | | | — | | | | | | 1,300,266 | | | | | | 13 | | | | | | — | | | | | | 18,787 | | | | | | — | | | | | | — | | | | | | 18,880 | | |
Stock Grant | | | | | — | | | | | | — | | | | | | 600 | | | | | | — | | | | | | — | | | | | | 9 | | | | | | — | | | | | | — | | | | | | 9 | | |
Employee stock purchase plan | | | | | — | | | | | | — | | | | | | 3,923 | | | | | | — | | | | | | — | | | | | | 56 | | | | | | — | | | | | | — | | | | | | 56 | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,814 | | | | | | — | | | | | | 1,814 | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (32) | | | | | | (32) | | |
Stock based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 40 | | | | | | — | | | | | | — | | | | | | 40 | | |
Balance at December 31, 2017 | | | | | — | | | | | | — | | | | | | 4,818,267 | | | | | | 48 | | | | | | (220) | | | | | | 55,957 | | | | | | 2,009 | | | | | | (202) | | | | | | 57,592 | | |
Issuance of common stock, net of Issuance cost | | | | | — | | | | | | — | | | | | | 1,095,890 | | | | | | 11 | | | | | | — | | | | | | 19,987 | | | | | | — | | | | | | — | | | | | | 19,998 | | |
Stock Grant | | | | | — | | | | | | — | | | | | | 3,955 | | | | | | — | | | | | | — | | | | | | 72 | | | | | | — | | | | | | — | | | | | | 72 | | |
Employee stock purchase plan | | | | | — | | | | | | — | | | | | | 5,772 | | | | | | — | | | | | | — | | | | | | 96 | | | | | | — | | | | | | — | | | | | | 96 | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,106 | | | | | | — | | | | | | 2,106 | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (223) | | | | | | (223) | | |
Stock based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 39 | | | | | | — | | | | | | — | | | | | | 39 | | |
Balance at December 31, 2018 | | | | | — | | | | | $ | — | | | | | | 5,923,884 | | | | | $ | 59 | | | | | $ | (220) | | | | | $ | 76,152 | | | | | $ | 4,115 | | | | | $ | (425) | | | | | $ | 79,681 | | |
| | | 2018 | | | 2017 | | ||||||
Cash flows from operating activities | | | | ||||||||||
Net income | | | | $ | 2,106 | | | | | $ | 1814 | | |
Adjustments to reconcile net income to net cash from operating activities | | | | ||||||||||
Provision for loan losses | | | | | 1,150 | | | | | | 991 | | |
Deferred income tax benefit | | | | | (227) | | | | | | 532 | | |
Depreciation and amortization | | | | | 511 | | | | | | 417 | | |
Net amortization of securities | | | | | 238 | | | | | | 285 | | |
Net amortization on deferred loan fees | | | | | (361) | | | | | | 184 | | |
Stock compensation | | | | | 39 | | | | | | 40 | | |
Income from company owned life insurance | | | | | (237) | | | | | | (254) | | |
Changes in operating assets and liabilities: | | | | ||||||||||
Accrued interest receivable | | | | | (572) | | | | | | (403) | | |
Other assets | | | | | 105 | | | | | | 1,065 | | |
Official checks, accrued interest, interest payable and other liabilities | | | | | 1,386 | | | | | | 899 | | |
Net cash from operating activities | | | | | 4,138 | | | | | | 5,570 | | |
Cash flows from investing activities | | | | ||||||||||
Proceeds from maturities and paydowns of securities available for sale | | | | | 5,657 | | | | | | 3,766 | | |
Proceeds from paydowns of securities held to maturity | | | | | 55 | | | | | | 89 | | |
Purchase of securities available for sale | | | | | — | | | | | | — | | |
Loans originations, net of principal repayments | | | | | (136,682) | | | | | | (146,112) | | |
Purchase of Federal Reserve Bank stock | | | | | (345) | | | | | | (161) | | |
Purchase of Federal Home Loan Bank Stock | | | | | (783) | | | | | | (287) | | |
Purchases of premises and equipment | | | | | (1,578) | | | | | | (1,575) | | |
Net cash used in investing activities | | | | | (133,676) | | | | | | (144,280) | | |
Cash flows from financing activities | | | | ||||||||||
Net increase in deposits | | | | | 144,128 | | | | | | 135,252 | | |
Proceeds from issuance of stock | | | | | 20,169 | | | | | | 18,918 | | |
Issuance costs of common stock | | | | | (2) | | | | | | (54) | | |
Proceeds from Federal Home Loan Bank advances | | | | | 20,000 | | | | | | 20,000 | | |
Repayments of Federal Home Loan advances | | | | | (5,000) | | | | | | (15,000) | | |
Net cash provided by financing activities | | | | | 179,295 | | | | | | 159,116 | | |
Increase in cash and cash equivalents | | | | | 49,757 | | | | | | 20,406 | | |
Cash and cash equivalents at beginning of year | | | | | 37,126 | | | | | | 16,720 | | |
Cash and cash equivalents at end of year | | | | $ | 86,883 | | | | | $ | 37,126 | | |
Supplemental cash flow information: | | | | ||||||||||
Cash paid during the year for interest | | | | $ | 5,692 | | | | | $ | 2,560 | | |
Cash paid during the year for taxes | | | | | 885 | | | | | | 1,957 | | |
Supplemental noncash disclosures: | | | | ||||||||||
Other comprehensive loss – change in unrealized loss on securities available for sale, net of tax | | | | $ | (223) | | | | | $ | (32) | | |
| | | | | | | | | Fair Value Measurements at September 30, 2019 Using: | | |||||||||||||||
September 30, 2019 | | | Fair Value | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | ||||||||||||
Securities available for sale | | | | | | | | | | | | | | | | | | | | | | | | | |
SBA loans pools | | | | $ | 16,024 | | | | | $ | — | | | | | $ | 16,024 | | | | | $ | — | | |
Mortgage backed securities | | | | | 5,628 | | | | | | — | | | | | | 5,628 | | | | | | — | | |
US Agency Securities | | | | | 4,585 | | | | | | — | | | | | | 4,585 | | | | | | — | | |
Corporate bonds | | | | | 1,999 | | | | | | — | | | | | | 1,999 | | | | | | — | | |
Total | | | | $ | 28,236 | | | | | $ | — | | | | | $ | 28,236 | | | | | $ | — | | |
Equity Securities | | | | | | | | | | | | | | | | | | | | | | | | | |
Mutual funds | | | | $ | 975 | | | | | | — | | | | | $ | 975 | | | | | | — | | |
Total | | | | $ | 975 | | | | | $ | — | | | | | $ | 975 | | | | | $ | — | | |
| | | | | | | | | Fair Value Measurements at December 31, 2018 Using: | | |||||||||||||||
December 31, 2018 | | | Fair Value | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | ||||||||||||
Securities available for sale | | | | | | | | | | | | | | | | | | | | | | | | | |
SBA loans pools | | | | $ | 7,449 | | | | | $ | — | | | | | $ | 7,449 | | | | | $ | — | | |
Mortgage backed securities | | | | | 6,308 | | | | | | — | | | | | | 6,308 | | | | | | — | | |
Corporate bonds | | | | | 5,828 | | | | | | — | | | | | | 5,828 | | | | | | — | | |
Total | | | | $ | 19,585 | | | | | $ | — | | | | | $ | 19,585 | | | | | $ | — | | |
Equity Securities | | | | | | | | | | | | | | | | | | | | | | | | | |
Mutual funds | | | | $ | 942 | | | | | | — | | | | | $ | 942 | | | | | | — | | |
Total | | | | $ | 942 | | | | | $ | — | | | | | $ | 942 | | | | | $ | — | | |
| | | | | | | | | Fair Value Measurements at September 30, 2019 Using: | | |||||||||||||||||||||
(Dollars in thousands) | | | Total at September 30, 2019 | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | | Total Gains (Losses) for the nine months ended September 30, 2019 | | |||||||||||||||
Impaired Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial | | | | | 450 | | | | | | — | | | | | | — | | | | | | 450 | | | | | | (619) | | |
Construction and land development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer and other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 450 | | | | | $ | — | | | | | $ | — | | | | | $ | 450 | | | | | $ | (619) | | |
| | | | | | | | | Fair Value Measurements at December 31, 2018 Using: | | |||||||||||||||||||||
(Dollars in thousands) | | | Total at December 31, 2018 | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | | Total Gains (Losses) | | |||||||||||||||
Impaired Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Construction and land development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | |
Consumer and other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
September 30, 2019 | | | Carrying Amount | | | Fair Value | | | FairValue Hierarchy | | ||||||
Financial Assets: | | | | | | | | | | | | | | | | |
Cash & Due from Banks, including interest bearing deposits | | | | $ | 104,097 | | | | | $ | 104,097 | | | | Level 1 | |
Federal Funds Sold | | | | | 26,398 | | | | | | 26,398 | | | | Level 1 | |
Securities, Available for Sale | | | | | 28,236 | | | | | | 28,236 | | | | Level 2 | |
Securities, Held to Maturity | | | | | 224 | | | | | | 236 | | | | Level 2 | |
Equity securities | | | | | 975 | | | | | | 975 | | | | Level 2 | |
Loans, net | | | | | 764,663 | | | | | | 784,899 | | | | Level 3 | |
Federal Home Loan Bank Stock | | | | | 2,782 | | | | | | N/A | | | | N/A | |
Federal Reserve Bank Stock | | | | | 2,001 | | | | | | N/A | | | | N/A | |
Company Owned Life Insurance | | | | | 16,728 | | | | | | 16,728 | | | | Level 2 | |
Accrued Interest Receivable | | | | | 2,451 | | | | | | 2,451 | | | | Level 3 | |
Financial Liabilities: | | | | | | | | | | | | | | | | |
Deposits | | | | | 823,065 | | | | | | 803,018 | | | | Level 2 | |
Federal Home Loan Bank Advances | | | | | 50,000 | | | | | | 49,359 | | | | Level 2 | |
Accrued Interest Payable | | | | | 353 | | | | | | 353 | | | | Level 2 | |
December 31, 2018 | | | Carrying Amount | | | Fair Value | | | FairValue Hierarchy | | ||||||
Financial Assets: | | | | | | | | | | | | | | | | |
Cash & Due from Banks, including interest bearing deposits | | | | $ | 64,842 | | | | | $ | 64,842 | | | | Level 1 | |
Federal Funds Sold | | | | | 22,041 | | | | | | 22,041 | | | | Level 1 | |
Securities, Available for Sale | | | | | 19,585 | | | | | | 19,585 | | | | Level 2 | |
Securities, Held to Maturity | | | | | 259 | | | | | | 265 | | | | Level 2 | |
Equity securities | | | | | 942 | | | | | | 942 | | | | Level 2 | |
Loans, net | | | | | 601,480 | | | | | | 606,838 | | | | Level 3 | |
Federal Home Loan Bank Stock | | | | | 2,192 | | | | | | N/A | | | | N/A | |
Federal Reserve Bank Stock | | | | | 1,472 | | | | | | N/A | | | | N/A | |
Company Owned Life Insurance | | | | | 8,449 | | | | | | 8,449 | | | | Level 2 | |
Accrued Interest Receivable | | | | | 1,979 | | | | | | 1,979 | | | | Level 3 | |
Financial Liabilities: | | | | | | | | | | | | | | | | |
Deposits | | | | | 603,302 | | | | | | 602,937 | | | | Level 2 | |
Federal Home Loan Bank Advances | | | | | 40,000 | | | | | | 39,834 | | | | Level 2 | |
Accrued Interest Payable | | | | | 342 | | | | | | 342 | | | | Level 2 | |
| | | Three-month period ended September 30, 2019 | | | Nine-month period ended September 30, 2019 | | ||||||
Operating Lease and Interest Cost | | | | | 282 | | | | | | 726 | | |
Variable Lease Cost | | | | | 92 | | | | | | 269 | | |
Total Lease Cost | | | | $ | 374 | | | | | $ | 995 | | |
| | | Three-month period ended September 30, 2019 | | | Nine-month period ended September 30, 2019 | | ||||||
Operating Lease – Operating Cash Flows (Fixed Payments) | | | | | 282 | | | | | | 726 | | |
Operating Lease – Operating Cash Flows (Liability Reduction) | | | | | 239 | | | | | | 442 | | |
New ROU Assets – Operating Leases | | | | | — | | | | | | 411 | | |
Weighted Average Lease Term (Years) – Operating Leases | | | | | | | | | | | 8.06 | | |
Weighted Average Discount Rate – Operating Leases | | | | | | | | | | | 3.82% | | |
| | | September 30, 2019 | | |||
Operating lease payments due: | | | | | | | |
Within one year | | | | $ | 1,060 | | |
After one but within two years | | | | | 1,064 | | |
After two but within three years | | | | | 1,083 | | |
After three but within four years | | | | | 1,115 | | |
After four years but within five years | | | | | 1,022 | | |
After five years | | | | | 2,218 | | |
Total undiscounted cash flows | | | | | 7,562 | | |
Discount on cash flows | | | | | (933) | | |
Total operating lease liabilities | | | | $ | 6,629 | | |
| |||||
| | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
2018 | | | | | | ||||||||||||||||||||
Available-for-sale | | | | | | ||||||||||||||||||||
Small Business Administration loan pools | | | | $ | 7,563 | | | | | $ | — | | | | | $ | (114) | | | | | $ | 7,449 | | |
Mortgage-backed securities | | | | | 6,533 | | | | | | 2 | | | | | | (227) | | | | | | 6,308 | | |
Corporate bonds | | | | | 6,000 | | | | | | 21 | | | | | | (193) | | | | | | 5,828 | | |
Total available-for-sale | | | | $ | 20,096 | | | | | $ | 23 | | | | | $ | (534) | | | | | $ | 19,585 | | |
|
| | | Amortized Cost | | | Gross Unrecognized Gains | | | Gross Unrecognized Losses | | | Fair Value | | ||||||||||||
Held-to-Maturity | | | | | | ||||||||||||||||||||
Mortgage-backed securities | | | | $ | 259 | | | | | $ | 6 | | | | | $ | — | | | | | $ | 265 | | |
Total Held-to-Maturity | | | | $ | 259 | | | | | $ | 6 | | | | | $ | — | | | | | $ | 265 | | |
|
| | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
2017 | | | | | | ||||||||||||||||||||
Available-for-sale | | | | | | ||||||||||||||||||||
Small Business Administration loan pools | | | | $ | 10,173 | | | | | $ | 7 | | | | | $ | (69) | | | | | $ | 10,111 | | |
Mortgage-backed securities | | | | | 7,827 | | | | | | 2 | | | | | | (203) | | | | | | 7,626 | | |
Mutual Funds | | | | | 1,000 | | | | | | — | | | | | | (37) | | | | | | 963 | | |
Corporate bonds | | | | | 7,990 | | | | | | 49 | | | | | | (19) | | | | | | 8,020 | | |
Total available-for-sale | | | | $ | 26,990 | | | | | $ | 58 | | | | | $ | (328) | | | | | $ | 26,720 | | |
|
| | | Amortized Cost | | | Gross Unrecognized Gains | | | Gross Unrecognized Losses | | | Fair Value | | ||||||||||||
Held-to-Maturity | | | | | | ||||||||||||||||||||
Mortgage-backed securities | | | | $ | 316 | | | | | $ | 9 | | | | | $ | — | | | | | $ | 325 | | |
Total Held-to-Maturity | | | | $ | 316 | | | | | $ | 9 | | | | | $ | — | | | | | $ | 325 | | |
| | | December 31, 2018 | | |||||||||
| | | Amortized Cost | | | Fair Value | | ||||||
Available-for-sale | | | | ||||||||||
Small Business Administration loan pools | | | | $ | 7,563 | | | | | $ | 7,449 | | |
Mortgage-backed securities | | | | | 6,533 | | | | | | 6,308 | | |
Corporate Bonds, One to Five Year Maturity | | | | | 6,000 | | | | | | 5,828 | | |
Total | | | | $ | 20,096 | | | | | $ | 19,585 | | |
Held-to-maturity | | | | ||||||||||
Mortgage-backed securities | | | | $ | 259 | | | | | $ | 265 | | |
Total | | | | $ | 259 | | | | | $ | 265 | | |
| | | Less Than 12 Months | | | 12 Months or Longer | | | Total | | |||||||||||||||||||||||||||
| | | Fair Value | | | Unrealized Losses | | | Fair Value | | | Unrealized Losses | | | Fair Value | | | Unrealized Losses | | ||||||||||||||||||
December 31, 2018 | | | | | | | | ||||||||||||||||||||||||||||||
Available-for-sale | | | | | | | | ||||||||||||||||||||||||||||||
SBA loan pools | | | | $ | 1,212 | | | | | $ | — | | | | | $ | 5,934 | | | | | $ | (98) | | | | | $ | 7,146 | | | | | $ | (114) | | |
Mortgage-backed | | | | | — | | | | | | (16) | | | | | | 5,964 | | | | | | (227) | | | | | | 5,964 | | | | | | (227) | | |
Corporate bonds | | | | | 1,812 | | | | | | (188) | | | | | | 495 | | | | | | (5) | | | | | | 2,307 | | | | | | (193) | | |
Total available-for-sale | | | | $ | 3,024 | | | | | $ | (204) | | | | | $ | 12,393 | | | | | $ | (330) | | | | | $ | 15,417 | | | | | $ | (534) | | |
December 31, 2017 | | | | | | | | ||||||||||||||||||||||||||||||
Available-for-sale | | | | | | | | ||||||||||||||||||||||||||||||
SBA loan pools | | | | $ | 5,372 | | | | | $ | (34) | | | | | $ | 2,819 | | | | | $ | (35) | | | | | $ | 8,191 | | | | | $ | (69) | | |
Mortgage-backed | | | | | — | | | | | | — | | | | | | 7,198 | | | | | | (203) | | | | | | 7,198 | | | | | | (203) | | |
Mutual Funds | | | | | — | | | | | | — | | | | | | 963 | | | | | | (37) | | | | | | 963 | | | | | | (37) | | |
Corporate bonds | | | | | — | | | | | | — | | | | | | 3,981 | | | | | | (19) | | | | | | 3,981 | | | | | | (19) | | |
Total available-for-sale | | | | $ | 5,372 | | | | | $ | (34) | | | | | $ | 14,961 | | | | | $ | (294) | | | | | $ | 20,333 | | | | | $ | (328) | | |
| | | 2018 | | | 2017 | | ||||||
Commercial real estate | | | | $ | 191,930 | | | | | $ | 156,720 | | |
Residential real estate | | | | | 311,404 | | | | | | 224,246 | | |
Commercial | | | | | 83,276 | | | | | | 59,065 | | |
Construction and development | | | | | 17,608 | | | | | | 28,272 | | |
Consumer and other loans | | | | | 3,244 | | | | | | 1,755 | | |
| | | | | 607,462 | | | | | | 470,058 | | |
Less – | | | | ||||||||||
Unearned loan origination fees (costs), net | | | | | (297) | | | | | | 64 | | |
Allowance for loan losses | | | | | (5,685) | | | | | | (4,535) | | |
| | | | $ | 601,480 | | | | | $ | 465,587 | | |
|
| | | Commercial Real Estate | | | Residential Real Estate | | | Commercial | | | Construction and land Development | | | Consumer and Other | | | Total | | ||||||||||||||||||
December 31, 2018 | | | | | | | | ||||||||||||||||||||||||||||||
Allowance for loan losses: | | | | | | | | ||||||||||||||||||||||||||||||
Beginning balance | | | | $ | 1,275 | | | | | $ | 1,590 | | | | | $ | 1,170 | | | | | $ | 452 | | | | | $ | 48 | | | | | $ | 4,535 | | |
Provision for loan losses | | | | | 160 | | | | | | 232 | | | | | | 936 | | | | | | (190) | | | | | | 12 | | | | | | 1,150 | | |
Loans charged-off | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Recoveries | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total ending allowance balance | | | | $ | 1,435 | | | | | $ | 1,822 | | | | | $ | 2,106 | | | | | $ | 262 | | | | | $ | 60 | | | | | $ | 5,685 | | |
|
| | | Commercial | | | Residential Real Estate | | | Commercial Real Estate | | | Construction and land Development | | | Consumer and Other | | | Total | | ||||||||||||||||||
December 31, 2017 | | | | | | | | ||||||||||||||||||||||||||||||
Allowance for loan losses: | | | | | | | | ||||||||||||||||||||||||||||||
Beginning balance | | | | $ | 838 | | | | | $ | 1,281 | | | | | $ | 648 | | | | | $ | 742 | | | | | $ | 23 | | | | | $ | 3,532 | | |
Provision (credit) for loan losses | | | | | 437 | | | | | | 309 | | | | | | 510 | | | | | | (290) | | | | | | 25 | | | | | | 991 | | |
Loans charged-off | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Recoveries | | | | | — | | | | | | — | | | | | | 12 | | | | | | — | | | | | | — | | | | | | 12 | | |
Total ending allowance balance | | | | $ | 1,275 | | | | | $ | 1,590 | | | | | $ | 1,170 | | | | | $ | 452 | | | | | $ | 48 | | | | | $ | 4,535 | | |
| | | Commercial Real Estate | | | Residential Real Estate | | | Commercial | | | Construction and Land Development | | | Consumer and Other | | | Total | | ||||||||||||||||||
December 31, 2018 | | | | | | | | ||||||||||||||||||||||||||||||
Allowance for loan losses: | | | | | | | | ||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans | | | | | | | | ||||||||||||||||||||||||||||||
Individually evaluated for impairment | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Collectively evaluated for impairment | | | | | 1,435 | | | | | | 1,822 | | | | | | 2,106 | | | | | | 262 | | | | | | 60 | | | | | | 5,685 | | |
Total ending allowance balance | | | | $ | 1,435 | | | | | $ | 1,822 | | | | | $ | 2,106 | | | | | $ | 262 | | | | | $ | 60 | | | | | $ | 5,685 | | |
Loans: | | | | | | | | ||||||||||||||||||||||||||||||
Loans individually evaluated for impairment | | | | $ | — | | | | | $ | 357 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 357 | | |
Loans collectively evaluated for impairment | | | | | 191,930 | | | | | | 311,047 | | | | | | 83,276 | | | | | | 17,608 | | | | | | 3,244 | | | | | | 607,105 | | |
Total ending loans balance | | | | $ | 191,930 | | | | | $ | 311,404 | | | | | $ | 83,276 | | | | | $ | 17,608 | | | | | $ | 3,244 | | | | | $ | 607,462 | | |
December 31, 2017 | | | | | | | | ||||||||||||||||||||||||||||||
Allowance for loan losses: | | | | | | | | ||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans | | | | | | | | ||||||||||||||||||||||||||||||
Individually evaluated for impairment | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Collectively evaluated for impairment | | | | | 1,275 | | | | | | 1,590 | | | | | | 1,170 | | | | | | 452 | | | | | | 48 | | | | | | 4,535 | | |
Total ending allowance balance | | | | $ | 1,275 | | | | | $ | 1,590 | | | | | $ | 1,170 | | | | | $ | 452 | | | | | $ | 48 | | | | | $ | 4,535 | | |
Loans: | | | | | | | | ||||||||||||||||||||||||||||||
Loans individually evaluated for impairment | | | | $ | — | | | | | $ | 378 | | | | | $ | 31 | | | | | $ | — | | | | | $ | — | | | | | $ | 409 | | |
Loans collectively evaluated for impairment | | | | | 156,720 | | | | | | 223,868 | | | | | | 59,034 | | | | | | 28,272 | | | | | | 1,755 | | | | | | 469,649 | | |
Total ending loans balance | | | | $ | 156,720 | | | | | $ | 224,246 | | | | | $ | 59,065 | | | | | $ | 28,272 | | | | | $ | 1,755 | | | | | $ | 470,058 | | |
| | | 30 - 59 Days Past Due | | | 60 - 89 Days Past Due | | | Greater than 89 Days Past Due | | | Total Past Due | | | Loans Not Past Due | | | Total | | ||||||||||||||||||
December 31, 2018 | | | | | | | | ||||||||||||||||||||||||||||||
Commercial real estate | | | | $ | 2,478 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,478 | | | | | $ | 189,452 | | | | | $ | 191,930 | | |
Residential real estate | | | | | 257 | | | | | | — | | | | | | — | | | | | | 257 | | | | | | 311,147 | | | | | | 311,404 | | |
Commercial | | | | | 1,081 | | | | | | — | | | | | | — | | | | | | 1,081 | | | | | | 82,195 | | | | | | 83,276 | | |
Construction and land dev | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 17,608 | | | | | | 17,608 | | |
Consumer and other | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | 3,244 | | | | | | 3,244 | | |
Total | | | | $ | 3,816 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,816 | | | | | $ | 603,646 | | | | | $ | 607,462 | | |
|
| | | 30 - 59 Days Past Due | | | 60 - 89 Days Past Due | | | Greater than 89 Days Past Due | | | Total Past Due | | | Loans Not Past Due | | | Total | | ||||||||||||||||||
December 31, 2017 | | | | | | | | ||||||||||||||||||||||||||||||
Commercial real estate | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 156,720 | | | | | $ | 156,720 | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 224,246 | | | | | | 224,246 | | |
Commercial | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 59,065 | | | | | | 59,065 | | |
Construction and land dev | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 28,272 | | | | | | 28,272 | | |
Consumer and other | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | 1,755 | | | | | | 1,755 | | |
Total | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 470,058 | | | | | $ | 470,058 | | |
| | | Pass | | | Special Mention | | | Substandard | | | Doubtful | | | Total | | |||||||||||||||
December 31, 2018 | | | | | | | |||||||||||||||||||||||||
Commercial real estate | | | | $ | 189,228 | | | | | $ | 2,702 | | | | | $ | — | | | | | $ | — | | | | | $ | 191,930 | | |
Residential real estate | | | | | 311,013 | | | | | | 391 | | | | | | — | | | | | | — | | | | | | 311,404 | | |
Commercial | | | | | 82,668 | | | | | | 577 | | | | | | 31 | | | | | | — | | | | | | 83,276 | | |
Construction and land development | | | | | 17,608 | | | | | | — | | | | | | — | | | | | | — | | | | | | 17,608 | | |
Consumer | | | | | 3,244 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,244 | | |
Total | | | | $ | 603,761 | | | | | $ | 3,670 | | | | | $ | 31 | | | | | $ | — | | | | | $ | 607,462 | | |
December 31, 2017 | | | | | | | |||||||||||||||||||||||||
Commercial real estate | | | | $ | 155,671 | | | | | $ | 1,049 | | | | | $ | — | | | | | $ | — | | | | | $ | 156,720 | | |
Residential real estate | | | | | 224,246 | | | | | | — | | | | | | — | | | | | | — | | | | | | 224,246 | | |
Commercial | | | | | 58,936 | | | | | | 98 | | | | | | 31 | | | | | | — | | | | | | 59,065 | | |
Construction and land development | | | | | 28,272 | | | | | | — | | | | | | — | | | | | | — | | | | | | 28,272 | | |
Consumer | | | | | 1,755 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,755 | | |
Total | | | | $ | 468,880 | | | | | $ | 1,147 | | | | | $ | 31 | | | | | $ | — | | | | | $ | 470,058 | | |
| | | 2018 | | | 2017 | | | Estimated Useful Lives (In Years) | | ||||||
Furniture, fixture, and equipment | | | | $ | 800 | | | | | $ | 723 | | | | 5-7 years | |
Computer hardware and software | | | | | 1,321 | | | | | | 1,131 | | | | 3-5 years | |
Leasehold improvements | | | | | 2,161 | | | | | | 2,021 | | | | 10-12 years | |
Corporate Branding | | | | | 117 | | | | | | — | | | | 3-5 years | |
| | | | | 4,399 | | | | | | 3,875 | | | | ||
Accumulated depreciation and amortization | | | | �� | (1,050) | | | | | | (1,593) | | | | ||
| | | | $ | 3,349 | | | | | $ | 2,282 | | | | ||
|
| 2019 | | | | $ | 976 | | |
| 2020 | | | | | 937 | | |
| 2021 | | | | | 922 | | |
| 2022 | | | | | 922 | | |
| 2023 | | | | | 922 | | |
| Thereafter | | | | | 2,797 | | |
| | | | | $ | 7,476 | | |
Year ending December 31 | | | Amount | | |||
2019 | | | | $ | 79,722 | | |
2020 | | | | | 8,344 | | |
2021 | | | | | 4,867 | | |
2022 | | | | | 515 | | |
2023 | | | | | 130 | | |
| | | | $ | 93,578 | | |
| | | 2018 | | | 2017 | | ||||||
Maturities of 2018, fixed rate of 1.08% | | | | $ | — | | | | | $ | 5,000 | | |
Maturities of 2019, fixed rates of 1.58% | | | | | 5,000 | | | | | | 5,000 | | |
Maturities of 2019, fixed rate hybrid of 2.42% | | | | | 10,000 | | | | | | — | | |
Maturities of 2020, fixed rates of 1.67% | | | | | 5,000 | | | | | | 5,000 | | |
Maturities of 2020, adjustable rates from 2.52% to 2.53% as of 12/31/18 | | | | | 20,000 | | | | | | 10,000 | | |
| | | | $ | 40,000 | | | | | $ | 25,000 | | |
| 2019 | | | | $ | 15,000 | | |
| 2020 | | | | | 25,000 | | |
| | | 2018 | | | 2017 | | ||||||
Current provision | | | | ||||||||||
Federal | | | | $ | 660 | | | | | $ | 1,066 | | |
State | | | | | 236 | | | | | | 215 | | |
Deferred provision | | | | ||||||||||
Federal | | | | | (172) | | | | | | (217) | | |
Adjustment for enacted tax rate | | | | | — | | | | | | 697 | | |
State | | | | | (55) | | | | | | 83 | | |
| | | | $ | 669 | | | | | $ | 1,844 | | |
| | | 2018 | | | 2017 | | ||||||
Federal statutory rate times financial statement income | | | | | 21.0% | | | | | | 34.0% | | |
Effect of: | | | | ||||||||||
Tax-exempt income | | | | | 0.0% | | | | | | 0.0% | | |
State taxes, net of federal benefit | | | | | 4.3% | | | | | | 3.5% | | |
Earnings from company owned life insurance | | | | | -1.8% | | | | | | -2.4% | | |
Other permanent differences | | | | | 0.8% | | | | | | 0.9% | | |
Change in rate | | | | | 0.0% | | | | | | 19.1% | | |
Other, net | | | | | -0.2% | | | | | | -4.5% | | |
| | | | | 24.1% | | | | | | 50.4% | | |
| | | 2018 | | | 2017 | | ||||||
Deferred Tax assets: | | | | ||||||||||
Allowance for loan losses | | | | $ | 1,463 | | | | | $ | 1,172 | | |
Preopening expenses | | | | | 70 | | | | | | 82 | | |
Stock-based compensation | | | | | 89 | | | | | | 89 | | |
Deferred loan fees | | | | | 75 | | | | | | (16) | | |
Deferred rent | | | | | 70 | | | | | | 55 | | |
Unrealized loss on securities available for sale | | | | | 144 | | | | | | 68 | | |
Other | | | | | 14 | | | | | | 16 | | |
| | | | | 1,926 | | | | | | 1,483 | | |
Deferred Tax liabilities: | | | | ||||||||||
Property and equipment | | | | | (176) | | | | | | (19) | | |
Deferred Loan fees | | | | | — | | | | | | (16) | | |
| | | | | (176) | | | | | | (35) | | |
Net deferred tax asset | | | | $ | 1,750 | | | | | $ | 1,447 | | |
| | | 2018 | | | 2017 | | ||||||
Balance at January 1, 2018 | | | | $ | 4,660 | | | | | $ | 5,206 | | |
New loans | | | | | — | | | | | | — | | |
Effect of changes in composition of related parties | | | | | — | | | | | | (323) | | |
Repayments | | | | | (184) | | | | | | (223) | | |
Balance at December 31, 2018 | | | | $ | 4,476 | | | | | $ | 4,660 | | |
| | | | | | | | | Fair Value Measurements at September 30, 2019 Using: | | |||||||||||||||
September 30, 2019 | | | Fair Value | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | ||||||||||||
Securities available for sale | | | | | | | | | | | | | | | | | | | | | | | | | |
SBA loans pools | | | | $ | 16,024 | | | | | $ | — | | | | | $ | 16,024 | | | | | $ | — | | |
Mortgage backed securities | | | | | 5,628 | | | | | | — | | | | | | 5,628 | | | | | | — | | |
US Agency Securities | | | | | 4,585 | | | | | | — | | | | | | 4,585 | | | | | | — | | |
Corporate bonds | | | | | 1,999 | | | | | | — | | | | | | 1,999 | | | | | | — | | |
Total | | | | $ | 28,236 | | | | | $ | — | | | | | $ | 28,236 | | | | | $ | — | | |
Equity Securities | | | | | | | | | | | | | | | | | | | | | | | | | |
Mutual funds | | | | $ | 975 | | | | | | — | | | | | $ | 975 | | | | | | — | | |
Total | | | | $ | 975 | | | | | $ | — | | | | | $ | 975 | | | | | $ | — | | |
| | | | | | | | | Fair Value Measurements at December 31, 2018 Using: | | |||||||||||||||
December 31, 2018 | | | Fair Value | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | ||||||||||||
Securities available for sale | | | | | | | | | | | | | | | | | | | | | | | | | |
SBA loans pools | | | | $ | 7,449 | | | | | $ | — | | | | | $ | 7,449 | | | | | $ | — | | |
Mortgage backed securities | | | | | 6,308 | | | | | | — | | | | | | 6,308 | | | | | | — | | |
Corporate bonds | | | | | 5,828 | | | | | | — | | | | | | 5,828 | | | | | | — | | |
Total | | | | $ | 19,585 | | | | | $ | — | | | | | $ | 19,585 | | | | | $ | — | | |
Equity Securities | | | | | | | | | | | | | | | | | | | | | | | | | |
Mutual funds | | | | $ | 942 | | | | | | — | | | | | $ | 942 | | | | | | — | | |
Total | | | | $ | 942 | | | | | $ | — | | | | | $ | 942 | | | | | $ | — | | |
| | | | | | | | | Fair Value Measurements at September 30, 2019 Using: | | |||||||||||||||||||||
(Dollars in thousands) | | | Total at September 30, 2019 | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | | Total Gains (Losses) for the nine months ended September 30, 2019 | | |||||||||||||||
Impaired Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial | | | | | 450 | | | | | | — | | | | | | — | | | | | | 450 | | | | | | (619) | | |
Construction and land development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer and other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 450 | | | | | $ | — | | | | | $ | — | | | | | $ | 450 | | | | | $ | (619) | | |
| | | | | | | | | Fair Value Measurements at December 31, 2018 Using: | | |||||||||||||||||||||
(Dollars in thousands) | | | Total at December 31, 2018 | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | | Total Gains (Losses) | | |||||||||||||||
Impaired Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Construction and land development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | |
Consumer and other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
September 30, 2019 | | | Carrying Amount | | | Fair Value | | | FairValue Hierarchy | | ||||||
Financial Assets: | | | | | | | | | | | | | | | | |
Cash & Due from Banks, including interest bearing deposits | | | | $ | 104,097 | | | | | $ | 104,097 | | | | Level 1 | |
Federal Funds Sold | | | | | 26,398 | | | | | | 26,398 | | | | Level 1 | |
Securities, Available for Sale | | | | | 28,236 | | | | | | 28,236 | | | | Level 2 | |
Securities, Held to Maturity | | | | | 224 | | | | | | 236 | | | | Level 2 | |
Equity securities | | | | | 975 | | | | | | 975 | | | | Level 2 | |
Loans, net | | | | | 764,663 | | | | | | 784,899 | | | | Level 3 | |
Federal Home Loan Bank Stock | | | | | 2,782 | | | | | | N/A | | | | N/A | |
Federal Reserve Bank Stock | | | | | 2,001 | | | | | | N/A | | | | N/A | |
Company Owned Life Insurance | | | | | 16,728 | | | | | | 16,728 | | | | Level 2 | |
Accrued Interest Receivable | | | | | 2,451 | | | | | | 2,451 | | | | Level 3 | |
Financial Liabilities: | | | | | | | | | | | | | | | | |
Deposits | | | | | 823,065 | | | | | | 803,018 | | | | Level 2 | |
Federal Home Loan Bank Advances | | | | | 50,000 | | | | | | 49,359 | | | | Level 2 | |
Accrued Interest Payable | | | | | 353 | | | | | | 353 | | | | Level 2 | |
December 31, 2018 | | | Carrying Amount | | | Fair Value | | | FairValue Hierarchy | | ||||||
Financial Assets: | | | | | | | | | | | | | | | | |
Cash & Due from Banks, including interest bearing deposits | | | | $ | 64,842 | | | | | $ | 64,842 | | | | Level 1 | |
Federal Funds Sold | | | | | 22,041 | | | | | | 22,041 | | | | Level 1 | |
Securities, Available for Sale | | | | | 19,585 | | | | | | 19,585 | | | | Level 2 | |
Securities, Held to Maturity | | | | | 259 | | | | | | 265 | | | | Level 2 | |
Equity securities | | | | | 942 | | | | | | 942 | | | | Level 2 | |
Loans, net | | | | | 601,480 | | | | | | 606,838 | | | | Level 3 | |
Federal Home Loan Bank Stock | | | | | 2,192 | | | | | | N/A | | | | N/A | |
Federal Reserve Bank Stock | | | | | 1,472 | | | | | | N/A | | | | N/A | |
Company Owned Life Insurance | | | | | 8,449 | | | | | | 8,449 | | | | Level 2 | |
Accrued Interest Receivable | | | | | 1,979 | | | | | | 1,979 | | | | Level 3 | |
Financial Liabilities: | | | | | | | | | | | | | | | | |
Deposits | | | | | 603,302 | | | | | | 602,937 | | | | Level 2 | |
Federal Home Loan Bank Advances | | | | | 40,000 | | | | | | 39,834 | | | | Level 2 | |
Accrued Interest Payable | | | | | 342 | | | | | | 342 | | | | Level 2 | |
| | | Three-month period ended September 30, 2019 | | | Nine-month period ended September 30, 2019 | | ||||||
Operating Lease and Interest Cost | | | | | 282 | | | | | | 726 | | |
Variable Lease Cost | | | | | 92 | | | | | | 269 | | |
Total Lease Cost | | | | $ | 374 | | | | | $ | 995 | | |
| | | Three-month period ended September 30, 2019 | | | Nine-month period ended September 30, 2019 | | ||||||
Operating Lease – Operating Cash Flows (Fixed Payments) | | | | | 282 | | | | | | 726 | | |
Operating Lease – Operating Cash Flows (Liability Reduction) | | | | | 239 | | | | | | 442 | | |
New ROU Assets – Operating Leases | | | | | — | | | | | | 411 | | |
Weighted Average Lease Term (Years) – Operating Leases | | | | | | | | | | | 8.06 | | |
Weighted Average Discount Rate – Operating Leases | | | | | | | | | | | 3.82% | | |
| | | September 30, 2019 | | |||
Operating lease payments due: | | | | | | | |
Within one year | | | | $ | 1,060 | | |
After one but within two years | | | | | 1,064 | | |
After two but within three years | | | | | 1,083 | | |
After three but within four years | | | | | 1,115 | | |
After four years but within five years | | | | | 1,022 | | |
After five years | | | | | 2,218 | | |
Total undiscounted cash flows | | | | | 7,562 | | |
Discount on cash flows | | | | | (933) | | |
Total operating lease liabilities | | | | $ | 6,629 | | |
| | | 2018 | | | 2017 | | ||||||
ASSETS | | | | ||||||||||
Cash and due from banks | | | | $ | 10,451 | | | | | $ | 9,012 | | |
Interest-bearing deposits | | | | | 54,391 | | | | | | 11,824 | | |
Federal funds sold | | | | | 22,041 | | | | | | 16,290 | | |
Cash and cash equivalents | | | | | 86,883 | | | | | | 37,126 | | |
Securities available for sale, at fair value | | | | | 19,585 | | | | | | 26,720 | | |
Securities held to maturity (fair value 2018 – $265, 2017 – $325) | | | | | 259 | | | | | | 316 | | |
Equity securities | | | | | 942 | | | | | | — | | |
Loans, net of allowance of $5,685 and $4,535 as of December 31, 2018 and 2017, respectively | | | | | 601,480 | | | | | | 465,587 | | |
Federal Home Loan Bank stock, at cost | | | | | 2,192 | | | | | | 1,409 | | |
Federal Reserve Bank stock, at cost | | | | | 1,472 | | | | | | 1,127 | | |
Accrued interest receivable | | | | | 1,979 | | | | | | 1,407 | | |
Premises and equipment, net | | | | | 3,349 | | | | | | 2,282 | | |
Company owned life insurance | | | | | 8,449 | | | | | | 8,212 | | |
Deferred tax asset | | | | | 1,750 | | | | | | 1,447 | | |
Other assets | | | | | 1,283 | | | | | | 1,388 | | |
| | | | $ | 729,625 | | | | | $ | 547,021 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | ||||||||||
Deposits | | | | ||||||||||
Demand – non-interest bearing | | | | $ | 130,245 | | | | | $ | 100,847 | | |
Money market, NOW accounts, and savings accounts | | | | | 379,479 | | | | | | 283,025 | | |
Time deposits | | | | | 93,578 | | | | | | 75,302 | | |
Total deposits | | | | | 603,302 | | | | | | 459,174 | | |
Federal Home Loan Bank advances | | | | | 40,000 | | | | | | 25,000 | | |
Official checks | | | | | 1,958 | | | | | | 1,169 | | |
Income taxes payable | | | | | 37 | | | | | | 207 | | |
Accrued interest and other liabilities | | | | | 4,647 | | | | | | 3,879 | | |
Total liabilities | | | | | 649,944 | | | | | | 489,429 | | |
Commitments and contingent liabilities | | | | ||||||||||
Stockholders’ equity | | | | ||||||||||
Preferred stock, 10,000,000 shares authorized, none issued | | | | | — | | | | | | — | | |
Class A Voting Common stock, $0.01 par value; 50,000,000 shares authorized, 5,171,700 and 4,276,219 shares issued and outstanding as of December 31, 2018 and 2017 | | | | | 52 | | | | | | 43 | | |
Class B Non-Voting Common stock, $0.01 par value; 10,000,000 shares authorized, 752,184 and 542,048 shares issued and outstanding as of December 31, 2018 and 2017 | | | | | 7 | | | | | | 5 | | |
Treasury stock, at cost | | | | | (220) | | | | | | (220) | | |
Additional paid-in capital | | | | | 76,152 | | | | | | 55,957 | | |
Retained earnings | | | | | 4,115 | | | | | | 2,009 | | |
Accumulated other comprehensive loss | | | | | (425) | | | | | | (202) | | |
Total stockholders’ equity | | | | | 79,681 | | | | | | 57,592 | | |
| | | | $ | 729,625 | | | | | $ | 547,021 | | |
| | | 2018 | | | 2017 | | ||||||
Interest income | | | | ||||||||||
Loans, including fees | | | | $ | 25,633 | | | | | $ | 17,857 | | |
Taxable securities | | | | | 614 | | | | | | 605 | | |
Tax-exempt securities | | | | | — | | | | | | — | | |
Dividend income on restricted stock | | | | | 215 | | | | | | 118 | | |
Other | | | | | 1,288 | | | | | | 277 | | |
Total interest income | | | | | 27,750 | | | | | | 18,857 | | |
Interest expense | | | | ||||||||||
Deposits | | | | | 5,104 | | | | | | 2,634 | | |
Federal Home Loan Bank advances | | | | | 733 | | | | | | 235 | | |
Total interest expense | | | | | 5,837 | | | | | | 2,869 | | |
Net interest income | | | | | 21,913 | | | | | | 15,988 | | |
Provision for loan losses | | | | | 1,150 | | | | | | 991 | | |
Net interest income after provision for loan losses | | | | | 20,763 | | | | | | 14,997 | | |
Non-interest income | | | | ||||||||||
Service charges on deposit accounts | | | | | 283 | | | | | | 194 | | |
Income from Company owned life insurance | | | | | 288 | | | | | | 306 | | |
Other | | | | | 1,303 | | | | | | 1,286 | | |
Total non-interest income | | | | | 1,874 | | | | | | 1,786 | | |
Non-interest expense | | | | ||||||||||
Salaries and employee benefits | | | | | 13,538 | | | | | | 8,672 | | |
Occupancy and equipment | | | | | 1,872 | | | | | | 1,473 | | |
Data processing | | | | | 624 | | | | | | 524 | | |
Marketing | | | | | 430 | | | | | | 180 | | |
Professional fees | | | | | 693 | | | | | | 396 | | |
Regulatory assessments | | | | | 535 | | | | | | 385 | | |
Other | | | | | 2,170 | | | | | | 1,495 | | |
Total non-interest expense | | | | | 19,862 | | | | | | 13,125 | | |
Income before income taxes | | | | | 2,775 | | | | | | 3,658 | | |
Income tax provision | | | | | (669) | | | | | | (1,844) | | |
Net income | | | | | 2,106 | | | | | | 1,814 | | |
Earnings per share: | | | | ||||||||||
Basic | | | | $ | 0.43 | | | | | $ | 0.39 | | |
Diluted | | | | $ | 0.41 | | | | | $ | 0.37 | | |
Other comprehensive income: | | | | ||||||||||
Unrealized holding gain (loss) on securities available for sale | | | | | (299) | | | | | | 1 | | |
Tax effect | | | | | 76 | | | | | | (33) | | |
Other comprehensive loss, net of tax | | | | | (223) | | | | | | (32) | | |
Comprehensive income | | | | $ | 1,883 | | | | | $ | 1,782 | | |
| | | Preferred Stock | | | Common Stock | | | Treasury Stock | | | Additional Paid-in Capital | | | Retained Earnings | | | Accumulated Other Comprehensive Loss | | | Total | | |||||||||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2017 | | | | | — | | | | | $ | — | | | | | | 3,513,478 | | | | | $ | 35 | | | | | $ | (220) | | | | | $ | 37,066 | | | | | $ | 195 | | | | | $ | (170) | | | | | $ | 36,905 | | |
Issuance of common stock, net of Issuance cost | | | | | — | | | | | | — | | | | | | 1,300,266 | | | | | | 13 | | | | | | — | | | | | | 18,787 | | | | | | — | | | | | | — | | | | | | 18,880 | | |
Stock Grant | | | | | — | | | | | | — | | | | | | 600 | | | | | | — | | | | | | — | | | | | | 9 | | | | | | — | | | | | | — | | | | | | 9 | | |
Employee stock purchase plan | | | | | — | | | | | | — | | | | | | 3,923 | | | | | | — | | | | | | — | | | | | | 56 | | | | | | — | | | | | | — | | | | | | 56 | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,814 | | | | | | — | | | | | | 1,814 | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (32) | | | | | | (32) | | |
Stock based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 40 | | | | | | — | | | | | | — | | | | | | 40 | | |
Balance at December 31, 2017 | | | | | — | | | | | | — | | | | | | 4,818,267 | | | | | | 48 | | | | | | (220) | | | | | | 55,957 | | | | | | 2,009 | | | | | | (202) | | | | | | 57,592 | | |
Issuance of common stock, net of Issuance cost | | | | | — | | | | | | — | | | | | | 1,095,890 | | | | | | 11 | | | | | | — | | | | | | 19,987 | | | | | | — | | | | | | — | | | | | | 19,998 | | |
Stock Grant | | | | | — | | | | | | — | | | | | | 3,955 | | | | | | — | | | | | | — | | | | | | 72 | | | | | | — | | | | | | — | | | | | | 72 | | |
Employee stock purchase plan | | | | | — | | | | | | — | | | | | | 5,772 | | | | | | — | | | | | | — | | | | | | 96 | | | | | | — | | | | | | — | | | | | | 96 | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,106 | | | | | | — | | | | | | 2,106 | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (223) | | | | | | (223) | | |
Stock based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 39 | | | | | | — | | | | | | — | | | | | | 39 | | |
Balance at December 31, 2018 | | | | | — | | | | | $ | — | | | | | | 5,923,884 | | | | | $ | 59 | | �� | | | $ | (220) | | | | | $ | 76,152 | | | | | $ | 4,115 | | | | | $ | (425) | | | | | $ | 79,681 | | |
| | | 2018 | | | 2017 | | ||||||
Cash flows from operating activities | | | | ||||||||||
Net income | | | | $ | 2,106 | | | | | $ | 1814 | | |
Adjustments to reconcile net income to net cash from operating activities | | | | ||||||||||
Provision for loan losses | | | | | 1,150 | | | | | | 991 | | |
Deferred income tax benefit | | | | | (227) | | | | | | 532 | | |
Depreciation and amortization | | | | | 511 | | | | | | 417 | | |
Net amortization of securities | | | | | 238 | | | | | | 285 | | |
Net amortization on deferred loan fees | | | | | (361) | | | | | | 184 | | |
Stock compensation | | | | | 39 | | | | | | 40 | | |
Income from company owned life insurance | | | | | (237) | | | | | | (254) | | |
Changes in operating assets and liabilities: | | | | ||||||||||
Accrued interest receivable | | | | | (572) | | | | | | (403) | | |
Other assets | | | | | 105 | | | | | | 1,065 | | |
Official checks, accrued interest, interest payable and other liabilities | | | | | 1,386 | | | | | | 899 | | |
Net cash from operating activities | | | | | 4,138 | | | | | | 5,570 | | |
Cash flows from investing activities | | | | ||||||||||
Proceeds from maturities and paydowns of securities available for sale | | | | | 5,657 | | | | | | 3,766 | | |
Proceeds from paydowns of securities held to maturity | | | | | 55 | | | | | | 89 | | |
Purchase of securities available for sale | | | | | — | | | | | | — | | |
Loans originations, net of principal repayments | | | | | (136,682) | | | | | | (146,112) | | |
Purchase of Federal Reserve Bank stock | | | | | (345) | | | | | | (161) | | |
Purchase of Federal Home Loan Bank Stock | | | | | (783) | | | | | | (287) | | |
Purchases of premises and equipment | | | | | (1,578) | | | | | | (1,575) | | |
Net cash used in investing activities | | | | | (133,676) | | | | | | (144,280) | | |
Cash flows from financing activities | | | | ||||||||||
Net increase in deposits | | | | | 144,128 | | | | | | 135,252 | | |
Proceeds from issuance of stock | | | | | 20,169 | | | | | | 18,918 | | |
Issuance costs of common stock | | | | | (2) | | | | | | (54) | | |
Proceeds from Federal Home Loan Bank advances | | | | | 20,000 | | | | | | 20,000 | | |
Repayments of Federal Home Loan advances | | | | | (5,000) | | | | | | (15,000) | | |
Net cash provided by financing activities | | | | | 179,295 | | | | | | 159,116 | | |
Increase in cash and cash equivalents | | | | | 49,757 | | | | | | 20,406 | | |
Cash and cash equivalents at beginning of year | | | | | 37,126 | | | | | | 16,720 | | |
Cash and cash equivalents at end of year | | | | $ | 86,883 | | | | | $ | 37,126 | | |
Supplemental cash flow information: | | | | ||||||||||
Cash paid during the year for interest | | | | $ | 5,692 | | | | | $ | 2,560 | | |
Cash paid during the year for taxes | | | | | 885 | | | | | | 1,957 | | |
Supplemental noncash disclosures: | | | | ||||||||||
Other comprehensive loss – change in unrealized loss on securities available for sale, net of tax | | | | $ | (223) | | | | | $ | (32) | | |
| ASU 2016-02, Leases (Topic 842) | | |||
| Description | | | In February 2016, the FASB amended existing guidance that requires lessees recognize the following for all leases (with the exception of short-term leases) at the commencement date: 1. A lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis. 2. A right-of-use specified asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align lessor accounting with the lessee accounting model and ASC Topic 606, Revenue from Contracts with Customers. | |
| Date of Adoption | | | This amendment is effective for public business entities for reporting periods beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted. | |
| Effect on the Consolidated Financial Statements | | | The Company will adopt the new standard effective January 1, 2019. Upon adoption, the Company will record lease liabilities and right-of-use assets totaling approximately $6.2 million and $5.7 million, respectively. Adoption is not expected to be material to the Company’s consolidated results of operations or cash flows. | |
| ASU 2016-13, Financial Instruments — Credit Losses (Topic 326) | | |||
| Description | | | In June 2016, FASB issued guidance to replace the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (CECL) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables and held to maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (i.e. loan commitments, standby letters of credit, financial guarantees and other similar instruments). | |
| Date of Adoption | | | For PBEs that meet the definition of an SEC filer, the standard will be effective for fiscal years beginning after December 15, 2019, including interim periods in those fiscal years. For calendar year-end SEC filers, it is effective for March 31, 2020 interim financial statements. For PBEs that are non-SEC filers and for SEC filers that are considered emerging growth companies, it is effective for January 1, 2021. | |
| Effect on the Consolidated Financial Statements | | | The Company’s management is in the process of evaluating and implementing changes to credit loss estimation models and related processes. Updates to business processes and the documentation of accounting policy decisions are ongoing. The company may recognize an increase in the allowance for credit losses upon adoption, recorded as a one-time cumulative adjustment to retained earnings. However, the magnitude of the impact on the Company’s consolidated financial statements has not yet been determined. The Company will adopt this accounting standard effective January 1, 2021. | |
| | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
2018 | | | | | | ||||||||||||||||||||
Available-for-sale | | | | | | ||||||||||||||||||||
Small Business Administration loan pools | | | | $ | 7,563 | | | | | $ | — | | | | | $ | (114) | | | | | $ | 7,449 | | |
Mortgage-backed securities | | | | | 6,533 | | | | | | 2 | | | | | | (227) | | | | | | 6,308 | | |
Corporate bonds | | | | | 6,000 | | | | | | 21 | | | | | | (193) | | | | | | 5,828 | | |
Total available-for-sale | | | | $ | 20,096 | | | | | $ | 23 | | | | | $ | (534) | | | | | $ | 19,585 | | |
|
| | | Amortized Cost | | | Gross Unrecognized Gains | | | Gross Unrecognized Losses | | | Fair Value | | ||||||||||||
Held-to-Maturity | | | | | | ||||||||||||||||||||
Mortgage-backed securities | | | | $ | 259 | | | | | $ | 6 | | | | | $ | — | | | | | $ | 265 | | |
Total Held-to-Maturity | | | | $ | 259 | | | | | $ | 6 | | | | | $ | — | | | | | $ | 265 | | |
|
| | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
2017 | | | | | | ||||||||||||||||||||
Available-for-sale | | | | | | ||||||||||||||||||||
Small Business Administration loan pools | | | | $ | 10,173 | | | | | $ | 7 | | | | | $ | (69) | | | | | $ | 10,111 | | |
Mortgage-backed securities | | | | | 7,827 | | | | | | 2 | | | | | | (203) | | | | | | 7,626 | | |
Mutual Funds | | | | | 1,000 | | | | | | — | | | | | | (37) | | | | | | 963 | | |
Corporate bonds | | | | | 7,990 | | | | | | 49 | | | | | | (19) | | | | | | 8,020 | | |
Total available-for-sale | | | | $ | 26,990 | | | | | $ | 58 | | | | | $ | (328) | | | | | $ | 26,720 | | |
|
| | | Amortized Cost | | | Gross Unrecognized Gains | | | Gross Unrecognized Losses | | | Fair Value | | ||||||||||||
Held-to-Maturity | | | | | | ||||||||||||||||||||
Mortgage-backed securities | | | | $ | 316 | | | | | $ | 9 | | | | | $ | — | | | | | $ | 325 | | |
Total Held-to-Maturity | | | | $ | 316 | | | | | $ | 9 | | | | | $ | — | | | | | $ | 325 | | |
| | | December 31, 2018 | | |||||||||
| | | Amortized Cost | | | Fair Value | | ||||||
Available-for-sale | | | | ||||||||||
Small Business Administration loan pools | | | | $ | 7,563 | | | | | $ | 7,449 | | |
Mortgage-backed securities | | | | | 6,533 | | | | | | 6,308 | | |
Corporate Bonds, One to Five Year Maturity | | | | | 6,000 | | | | | | 5,828 | | |
Total | | | | $ | 20,096 | | | | | $ | 19,585 | | |
Held-to-maturity | | | | ||||||||||
Mortgage-backed securities | | | | $ | 259 | | | | | $ | 265 | | |
Total | | | | $ | 259 | | | | | $ | 265 | | |
| | | Less Than 12 Months | | | 12 Months or Longer | | | Total | | |||||||||||||||||||||||||||
| | | Fair Value | | | Unrealized Losses | | | Fair Value | | | Unrealized Losses | | | Fair Value | | | Unrealized Losses | | ||||||||||||||||||
December 31, 2018 | | | | | | | | ||||||||||||||||||||||||||||||
Available-for-sale | | | | | | | | ||||||||||||||||||||||||||||||
SBA loan pools | | | | $ | 1,212 | | | | | $ | — | | | | | $ | 5,934 | | | | | $ | (98) | | | | | $ | 7,146 | | | | | $ | (114) | | |
Mortgage-backed | | | | | — | | | | | | (16) | | | | | | 5,964 | | | | | | (227) | | | | | | 5,964 | | | | | | (227) | | |
Corporate bonds | | | | | 1,812 | | | | | | (188) | | | | | | 495 | | | | | | (5) | | | | | | 2,307 | | | | | | (193) | | |
Total available-for-sale | | | | $ | 3,024 | | | | | $ | (204) | | | | | $ | 12,393 | | | | | $ | (330) | | | | | $ | 15,417 | | | | | $ | (534) | | |
December 31, 2017 | | | | | | | | ||||||||||||||||||||||||||||||
Available-for-sale | | | | | | | | ||||||||||||||||||||||||||||||
SBA loan pools | | | | $ | 5,372 | | | | | $ | (34) | | | | | $ | 2,819 | | | | | $ | (35) | | | | | $ | 8,191 | | | | | $ | (69) | | |
Mortgage-backed | | | | | — | | | | | | — | | | | | | 7,198 | | | | | | (203) | | | | | | 7,198 | | | | | | (203) | | |
Mutual Funds | | | | | — | | | | | | — | | | | | | 963 | | | | | | (37) | | | | | | 963 | | | | | | (37) | | |
Corporate bonds | | | | | — | | | | | | — | | | | | | 3,981 | | | | | | (19) | | | | | | 3,981 | | | | | | (19) | | |
Total available-for-sale | | | | $ | 5,372 | | | | | $ | (34) | | | | | $ | 14,961 | | | | | $ | (294) | | | | | $ | 20,333 | | | | | $ | (328) | | |
| | | 2018 | | | 2017 | | ||||||
Commercial real estate | | | | $ | 191,930 | | | | | $ | 156,720 | | |
Residential real estate | | | | | 311,404 | | | | | | 224,246 | | |
Commercial | | | | | 83,276 | | | | | | 59,065 | | |
Construction and development | | | | | 17,608 | | | | | | 28,272 | | |
Consumer and other loans | | | | | 3,244 | | | | | | 1,755 | | |
| | | | | 607,462 | | | | | | 470,058 | | |
Less – | | | | ||||||||||
Unearned loan origination fees (costs), net | | | | | (297) | | | | | | 64 | | |
Allowance for loan losses | | | | | (5,685) | | | | | | (4,535) | | |
| | | | $ | 601,480 | | | | | $ | 465,587 | | |
|
| | | Commercial Real Estate | | | Residential Real Estate | | | Commercial | | | Construction and land Development | | | Consumer and Other | | | Total | | ||||||||||||||||||
December 31, 2018 | | | | | | | | ||||||||||||||||||||||||||||||
Allowance for loan losses: | | | | | | | | ||||||||||||||||||||||||||||||
Beginning balance | | | | $ | 1,275 | | | | | $ | 1,590 | | | | | $ | 1,170 | | | | | $ | 452 | | | | | $ | 48 | | | | | $ | 4,535 | | |
Provision for loan losses | | | | | 160 | | | | | | 232 | | | | | | 936 | | | | | | (190) | | | | | | 12 | | | | | | 1,150 | | |
Loans charged-off | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Recoveries | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total ending allowance balance | | | | $ | 1,435 | | | | | $ | 1,822 | | | | | $ | 2,106 | | | | | $ | 262 | | | | | $ | 60 | | | | | $ | 5,685 | | |
|
| | | Commercial | | | Residential Real Estate | | | Commercial Real Estate | | | Construction and land Development | | | Consumer and Other | | | Total | | ||||||||||||||||||
December 31, 2017 | | | | | | | | ||||||||||||||||||||||||||||||
Allowance for loan losses: | | | | | | | | ||||||||||||||||||||||||||||||
Beginning balance | | | | $ | 838 | | | | | $ | 1,281 | | | | | $ | 648 | | | | | $ | 742 | | | | | $ | 23 | | | | | $ | 3,532 | | |
Provision (credit) for loan losses | | | | | 437 | | | | | | 309 | | | | | | 510 | | | | | | (290) | | | | | | 25 | | | | | | 991 | | |
Loans charged-off | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Recoveries | | | | | — | | | | | | — | | | | | | 12 | | | | | | — | | | | | | — | | | | | | 12 | | |
Total ending allowance balance | | | | $ | 1,275 | | | | | $ | 1,590 | | | | | $ | 1,170 | | | | | $ | 452 | | | | | $ | 48 | | | | | $ | 4,535 | | |
| | | Commercial Real Estate | | | Residential Real Estate | | | Commercial | | | Construction and Land Development | | | Consumer and Other | | | Total | | ||||||||||||||||||
December 31, 2018 | | | | | | | | ||||||||||||||||||||||||||||||
Allowance for loan losses: | | | | | | | | ||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans | | | | | | | | ||||||||||||||||||||||||||||||
Individually evaluated for impairment | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Collectively evaluated for impairment | | | | | 1,435 | | | | | | 1,822 | | | | | | 2,106 | | | | | | 262 | | | | | | 60 | | | | | | 5,685 | | |
Total ending allowance balance | | | | $ | 1,435 | | | | | $ | 1,822 | | | | | $ | 2,106 | | | | | $ | 262 | | | | | $ | 60 | | | | | $ | 5,685 | | |
Loans: | | | | | | | | ||||||||||||||||||||||||||||||
Loans individually evaluated for impairment | | | | $ | — | | | | | $ | 357 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 357 | | |
Loans collectively evaluated for impairment | | | | | 191,930 | | | | | | 311,047 | | | | | | 83,276 | | | | | | 17,608 | | | | | | 3,244 | | | | | | 607,105 | | |
Total ending loans balance | | | | $ | 191,930 | | | | | $ | 311,404 | | | | | $ | 83,276 | | | | | $ | 17,608 | | | | | $ | 3,244 | | | | | $ | 607,462 | | |
December 31, 2017 | | | | | | | | ||||||||||||||||||||||||||||||
Allowance for loan losses: | | | | | | | | ||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans | | | | | | | | ||||||||||||||||||||||||||||||
Individually evaluated for impairment | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Collectively evaluated for impairment | | | | | 1,275 | | | | | | 1,590 | | | | | | 1,170 | | | | | | 452 | | | | | | 48 | | | | | | 4,535 | | |
Total ending allowance balance | | | | $ | 1,275 | | | | | $ | 1,590 | | | | | $ | 1,170 | | | | | $ | 452 | | | | | $ | 48 | | | | | $ | 4,535 | | |
Loans: | | | | | | | | ||||||||||||||||||||||||||||||
Loans individually evaluated for impairment | | | | $ | — | | | | | $ | 378 | | | | | $ | 31 | | | | | $ | — | | | | | $ | — | | | | | $ | 409 | | |
Loans collectively evaluated for impairment | | | | | 156,720 | | | | | | 223,868 | | | | | | 59,034 | | | | | | 28,272 | | | | | | 1,755 | | | | | | 469,649 | | |
Total ending loans balance | | | | $ | 156,720 | | | | | $ | 224,246 | | | | | $ | 59,065 | | | | | $ | 28,272 | | | | | $ | 1,755 | | | | | $ | 470,058 | | |
| | | 30 - 59 Days Past Due | | | 60 - 89 Days Past Due | | | Greater than 89 Days Past Due | | | Total Past Due | | | Loans Not Past Due | | | Total | | ||||||||||||||||||
December 31, 2018 | | | | | | | | ||||||||||||||||||||||||||||||
Commercial real estate | | | | $ | 2,478 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,478 | | | | | $ | 189,452 | | | | | $ | 191,930 | | |
Residential real estate | | | | | 257 | | | | | | — | | | | | | — | | | | | | 257 | | | | | | 311,147 | | | | | | 311,404 | | |
Commercial | | | | | 1,081 | | | | | | — | | | | | | — | | | | | | 1,081 | | | | | | 82,195 | | | | | | 83,276 | | |
Construction and land dev | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 17,608 | | | | | | 17,608 | | |
Consumer and other | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | 3,244 | | | | | | 3,244 | | |
Total | | | | $ | 3,816 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,816 | | | | | $ | 603,646 | | | | | $ | 607,462 | | |
|
| | | 30 - 59 Days Past Due | | | 60 - 89 Days Past Due | | | Greater than 89 Days Past Due | | | Total Past Due | | | Loans Not Past Due | | | Total | | ||||||||||||||||||
December 31, 2017 | | | | | | | | ||||||||||||||||||||||||||||||
Commercial real estate | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 156,720 | | | | | $ | 156,720 | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 224,246 | | | | | | 224,246 | | |
Commercial | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 59,065 | | | | | | 59,065 | | |
Construction and land dev | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 28,272 | | | | | | 28,272 | | |
Consumer and other | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | 1,755 | | | | | | 1,755 | | |
Total | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 470,058 | | | | | $ | 470,058 | | |
| | | Pass | | | Special Mention | | | Substandard | | | Doubtful | | | Total | | |||||||||||||||
December 31, 2018 | | | | | | | |||||||||||||||||||||||||
Commercial real estate | | | | $ | 189,228 | | | | | $ | 2,702 | | | | | $ | — | | | | | $ | — | | | | | $ | 191,930 | | |
Residential real estate | | | | | 311,013 | | | | | | 391 | | | | | | — | | | | | | — | | | | | | 311,404 | | |
Commercial | | | | | 82,668 | | | | | | 577 | | | | | | 31 | | | | | | — | | | | | | 83,276 | | |
Construction and land development | | | | | 17,608 | | | | | | — | | | | | | — | | | | | | — | | | | | | 17,608 | | |
Consumer | | | | | 3,244 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,244 | | |
Total | | | | $ | 603,761 | | | | | $ | 3,670 | | | | | $ | 31 | | | | | $ | — | | | | | $ | 607,462 | | |
December 31, 2017 | | | | | | | |||||||||||||||||||||||||
Commercial real estate | | | | $ | 155,671 | | | | | $ | 1,049 | | | | | $ | — | | | | | $ | — | | | | | $ | 156,720 | | |
Residential real estate | | | | | 224,246 | | | | | | — | | | | | | — | | | | | | — | | | | | | 224,246 | | |
Commercial | | | | | 58,936 | | | | | | 98 | | | | | | 31 | | | | | | — | | | | | | 59,065 | | |
Construction and land development | | | | | 28,272 | | | | | | — | | | | | | — | | | | | | — | | | | | | 28,272 | | |
Consumer | | | | | 1,755 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,755 | | |
Total | | | | $ | 468,880 | | | | | $ | 1,147 | | | | | $ | 31 | | | | | $ | — | | | | | $ | 470,058 | | |
| | | 2018 | | | 2017 | | | Estimated Useful Lives (In Years) | | ||||||
Furniture, fixture, and equipment | | | | $ | 800 | | | | | $ | 723 | | | | 5-7 years | |
Computer hardware and software | | | | | 1,321 | | | | | | 1,131 | | | | 3-5 years | |
Leasehold improvements | | | | | 2,161 | | | | | | 2,021 | | | | 10-12 years | |
Corporate Branding | | | | | 117 | | | | | | — | | | | 3-5 years | |
| | | | | 4,399 | | | | | | 3,875 | | | | ||
Accumulated depreciation and amortization | | | | | (1,050) | | | | | | (1,593) | | | | ||
| | | | $ | 3,349 | | | | | $ | 2,282 | | | | ||
|
| 2019 | | | | $ | 976 | | |
| 2020 | | | | | 937 | | |
| 2021 | | | | | 922 | | |
| 2022 | | | | | 922 | | |
| 2023 | | | | | 922 | | |
| Thereafter | | | | | 2,797 | | |
| | | | | $ | 7,476 | | |
Year ending December 31 | | | Amount | | |||
2019 | | | | $ | 79,722 | | |
2020 | | | | | 8,344 | | |
2021 | | | | | 4,867 | | |
2022 | | | | | 515 | | |
2023 | | | | | 130 | | |
| | | | $ | 93,578 | | |
| | | 2018 | | | 2017 | | ||||||
Maturities of 2018, fixed rate of 1.08% | | | | $ | — | | | | | $ | 5,000 | | |
Maturities of 2019, fixed rates of 1.58% | | | | | 5,000 | | | | | | 5,000 | | |
Maturities of 2019, fixed rate hybrid of 2.42% | | | | | 10,000 | | | | | | — | | |
Maturities of 2020, fixed rates of 1.67% | | | | | 5,000 | | | | | | 5,000 | | |
Maturities of 2020, adjustable rates from 2.52% to 2.53% as of 12/31/18 | | | | | 20,000 | | | | | | 10,000 | | |
| | | | $ | 40,000 | | | | | $ | 25,000 | | |
| 2019 | | | | $ | 15,000 | | |
| 2020 | | | | | 25,000 | | |
| | | 2018 | | | 2017 | | ||||||
Current provision | | | | ||||||||||
Federal | | | | $ | 660 | | | | | $ | 1,066 | | |
State | | | | | 236 | | | | | | 215 | | |
Deferred provision | | | | ||||||||||
Federal | | | | | (172) | | | | | | (217) | | |
Adjustment for enacted tax rate | | | | | — | | | | | | 697 | | |
State | | | | | (55) | | | | | | 83 | | |
| | | | $ | 669 | | | | | $ | 1,844 | | |
| | | 2018 | | | 2017 | | ||||||
Federal statutory rate times financial statement income | | | | | 21.0% | | | | | | 34.0% | | |
Effect of: | | | | ||||||||||
Tax-exempt income | | | | | 0.0% | | | | | | 0.0% | | |
State taxes, net of federal benefit | | | | | 4.3% | | | | | | 3.5% | | |
Earnings from company owned life insurance | | | | | -1.8% | | | | | | -2.4% | | |
Other permanent differences | | | | | 0.8% | | | | | | 0.9% | | |
Change in rate | | | | | 0.0% | | | | | | 19.1% | | |
Other, net | | | | | -0.2% | | | | | | -4.5% | | |
| | | | | 24.1% | | | | | | 50.4% | | |
| | | 2018 | | | 2017 | | ||||||
Deferred Tax assets: | | | | ||||||||||
Allowance for loan losses | | | | $ | 1,463 | | | | | $ | 1,172 | | |
Preopening expenses | | | | | 70 | | | | | | 82 | | |
Stock-based compensation | | | | | 89 | | | | | | 89 | | |
Deferred loan fees | | | | | 75 | | | | | | (16) | | |
Deferred rent | | | | | 70 | | | | | | 55 | | |
Unrealized loss on securities available for sale | | | | | 144 | | | | | | 68 | | |
Other | | | | | 14 | | | | | | 16 | | |
| | | | | 1,926 | | | | | | 1,483 | | |
Deferred Tax liabilities: | | | | ||||||||||
Property and equipment | | | | | (176) | | | | | | (19) | | |
Deferred Loan fees | | | | | — | | | | | | (16) | | |
| | | | | (176) | | | | | | (35) | | |
Net deferred tax asset | | | | $ | 1,750 | | | | | $ | 1,447 | | |
| | | 2018 | | | 2017 | | ||||||
Balance at January 1, 2018 | | | | $ | 4,660 | | | | | $ | 5,206 | | |
New loans | | | | | — | | | | | | — | | |
Effect of changes in composition of related parties | | | | | — | | | | | | (323) | | |
Repayments | | | | | (184) | | | | | | (223) | | |
Balance at December 31, 2018 | | | | $ | 4,476 | | | | | $ | 4,660 | | |
| | | | | | | | | Fair Value Measurements at December 31, 2018 Using: | | |||||||||||||||
2018 | | | Fair Value | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | ||||||||||||
Securities available for sale | | | | | | ||||||||||||||||||||
SBA loans pools | | | | $ | 7,449 | | | | | $ | — | | | | | $ | 7,449 | | | | | $ | — | | |
Mortgage backed securities | | | | | 6,308 | | | | | | — | | | | | | 6,308 | | | | | | — | | |
Corporate bonds | | | | | 5,828 | | | | | | — | | | | | | 5,828 | | | | | | — | | |
Total | | | | $ | 19,585 | | | | | $ | — | | | | | $ | 19,585 | | | | | $ | — | | |
Equity Securities | | | | | | ||||||||||||||||||||
Mutual funds | | | | $ | 942 | | | | | $ | — | | | | | $ | 942 | | | | | $ | — | | |
Total | | | | $ | 942 | | | | | $ | — | | | | | $ | 942 | | | | | $ | — | | |
| | | | | | | | | Fair Value Measurements at December 31, 2017 Using: | | |||||||||||||||
2017 | | | Fair Value | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | ||||||||||||
Securities available for sale | | | | | | ||||||||||||||||||||
SBA loans pools | | | | $ | 10,110 | | | | | $ | — | | | | | $ | 10,110 | | | | | $ | — | | |
Mortgage backed securities | | | | | 7,626 | | | | | | — | | | | | | 7,626 | | | | | | — | | |
Mutual Funds | | | | | 963 | | | | | | — | | | | | | 963 | | | | | | — | | |
Corporate bonds | | | | | 8,021 | | | | | | — | | | | | | 8,021 | | | | | | — | | |
Total | | | | $ | 26,720 | | | | | $ | — | | | | | $ | 26,720 | | | | | $ | — | | |
| | | 2018 | | ||||||||||||
| | | Carrying Amount | | | Fair Value | | | Fair Value Hierarchy | | ||||||
Financial Assets: | | | | | ||||||||||||
Cash & Due from Banks, including interest bearing deposits | | | | $ | 64,842 | | | | | $ | 64,842 | | | | Level 1 | |
Federal Funds Sold | | | | | 22,041 | | | | | | 22,041 | | | | Level 1 | |
Securities, Available for Sale | | | | | 19,585 | | | | | | 19,585 | | | | Level 2 | |
Securities, Held to Maturity | | | | | 259 | | | | | | 265 | | | | Level 2 | |
Equity Securities | | | | | 942 | | | | | | 942 | | | | Level 2 | |
Loans, net | | | | | 601,480 | | | | | | 606,838 | | | | Level 3 | |
Federal Home Loan Bank Stock | | | | | 2,192 | | | | | | N/A | | | | N/A | |
Federal Reserve Bank Stock | | | | | 1,472 | | | | | | N/A | | | | N/A | |
Company Owned Life Insurance | | | | | 8,449 | | | | | | 8,449 | | | | Level 2 | |
Accrued Interest Receivable | | | | | 1,979 | | | | | | 1,979 | | | | Level 3 | |
Financial Liabilities: | | | | | ||||||||||||
Deposits | | | | | 603,302 | | | | | | 602,937 | | | | Level 2 | |
Federal Home Loan Bank Advances | | | | | 40,000 | | | | | | 39,834 | | | | Level 2 | |
Accrued Interest Payable | | | | | 342 | | | | | | 342 | | | | Level 2 | |
| | | 2017 | | ||||||||||||
| | | Carrying Amount | | | Fair Value | | | Fair Value Hierarchy | | ||||||
Financial Assets: | | | | | ||||||||||||
Cash & Due from Banks, including interest bearing deposits | | | | $ | 20,836 | | | | | $ | 20,836 | | | | Level 1 | |
Federal Funds Sold | | | | | 16,290 | | | | | | 16,290 | | | | Level 1 | |
Securities, Available for Sale | | | | | 26,720 | | | | | | 26,720 | | | | Level 2 | |
Securities, Held to Maturity | | | | | 316 | | | | | | 325 | | | | Level 2 | |
Loans, net | | | | | 465,587 | | | | | | 465,232 | | | | Level 2 | |
Federal Home Loan Bank Stock | | | | | 1,409 | | | | | | N/A | | | | N/A | |
Federal Reserve Bank Stock | | | | | 1,127 | | | | | | N/A | | | | N/A | |
Company Owned Life Insurance | | | | | 8,212 | | | | | | 8,207 | | | | Level 2 | |
Accrued Interest Receivable | | | | | 1,407 | | | | | | 1,407 | | | | Level 2 | |
Financial Liabilities: | | | | | ||||||||||||
Deposits | | | | | 459,174 | | | | | | 444,574 | | | | Level 2 | |
Federal Home Loan Bank Advances | | | | | 25,000 | | | | | | 24,494 | | | | Level 2 | |
Accrued Interest Payable | | | | | 162 | | | | | | 162 | | | | Level 2 | |
| | | 2018 | | | 2017 | | ||||||
Available lines of credit | | | | $ | 106,866 | | | | | $ | 75,791 | | |
Unfunded loan commitments – fixed | | | | | 20,243 | | | | | | 5,210 | | |
Unfunded loan commitments – variable | | | | | 10,356 | | | | | | 37,599 | | |
Standby letters of credit | | | | | 8,670 | | | | | | 8,084 | | |
Commercial letters of credit | | | | | 1,747 | | | | | | 2,462 | | |
| | | Actual | | | Required for Capital Adequacy Purposes | | | Well Capitalized Prompt Corrective Action Regulations | | |||||||||||||||||||||||||||
| | | Amount | | | Ratio | | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||||||||
2018 | | | | | | | | ||||||||||||||||||||||||||||||
Total Capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | $ | 68,427 | | | | | | 13.4% | | | | | $ | 40,731 | | | | | | 8.0% | | | | | $ | 50,914 | | | | | | 10.0% | | |
Corporation | | | | | 86,014 | | | | | | 16.9 | | | | | | 40,731 | | | | | | 8.0 | | | | | | N/A | | | | | | N/A | | |
Tier 1 Capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 62,519 | | | | | | 12.3 | | | | | | 30,549 | | | | | | 6.0 | | | | | | 40,731 | | | | | | 8.0 | | |
Corporation | | | | | 80,107 | | | | | | 15.7 | | | | | | 30,549 | | | | | | 6.0 | | | | | | N/A | | | | | | N/A | | |
Tier 1 Leverage ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 62,519 | | | | | | 8.6 | | | | | | 29,129 | | | | | | 4.0 | | | | | | 36,411 | | | | | | 5.0 | | |
Corporation | | | | | 80,107 | | | | | | 11.0 | | | | | | 29,129 | | | | | | 4.0 | | | | | | N/A | | | | | | N/A | | |
Common Equity Tier 1 | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 62,519 | | | | | | 12.3 | | | | | | 22,911 | | | | | | 4.5 | | | | | | 33,094 | | | | | | 6.5 | | |
Corporation | | | | | 80,107 | | | | | | 15.7 | | | | | | 22,911 | | | | | | 4.5 | | | | | | N/A | | | | | | N/A | | |
2017 | | | | | | | | ||||||||||||||||||||||||||||||
Total Capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | $ | 49,234 | | | | | | 12.0% | | | | | $ | 32,866 | | | | | | 8.0% | | | | | $ | 41,083 | | | | | | 10.0% | | |
Corporation | | | | | 62,649 | | | | | | 15.2 | | | | | | 32,866 | | | | | | 8.0 | | | | | | N/A | | | | | | N/A | | |
Tier 1 Capital ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 44,476 | | | | | | 10.8 | | | | | | 24,650 | | | | | | 6.0 | | | | | | 32,866 | | | | | | 8.0 | | |
Corporation | | | | | 57,892 | | | | | | 14.1 | | | | | | 24,650 | | | | | | 6.0 | | | | | | N/A | | | | | | N/A | | |
Tier 1 Leverage ratio | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 44,476 | | | | | | 8.7 | | | | | | 20,513 | | | | | | 4.0 | | | | | | 25,641 | | | | | | 5.0 | | |
Corporation | | | | | 57,892 | | | | | | 11.3 | | | | | | 20,513 | | | | | | 4.0 | | | | | | N/A | | | | | | N/A | | |
Common Equity Tier 1 | | | | | | | | ||||||||||||||||||||||||||||||
Bank | | | | | 44,476 | | | | | | 10.8 | | | | | | 18,487 | | | | | | 4.5 | | | | | | 26,704 | | | | | | 6.5 | | |
Corporation | | | | | 57,892 | | | | | | 14.1 | | | | | | 18,487 | | | | | | 4.5 | | | | | | N/A | | | | | | N/A | | |
| | | 2018 | | | 2017 | |
Expected volatility | | | 27.49% | | | 23.46% | |
Risk-free interest rate | | | 2.59% | | | 2.33% | |
Expected life | | | 7 years | | | 7 years | |
Expected dividends | | | — | | | — | |
| | | Stock Options | | | Weighted- Average Exercise Price | | | Weighted- Average Remaining Contractual Term | | | Aggregate Intrinsic Value | | ||||||||||||
Balance at January 1, 2018 | | | | | 219,483 | | | | | $ | 11.46 | | | | | | | | | | | | | | |
Granted | | | | | 15,750 | | | | | | 18.25 | | | | | | | | | | | | | | |
Exercised | | | | | (8,750) | | | | | | 10.00 | | | | | | | | | | | | | | |
Expired | | | | | (2,750) | | | | | | 10.00 | | | | | | | | | | | | | | |
Forfeited | | | | | (1,400) | | | | | | 14.20 | | | | | | — | | | | | | | | |
Balance at December 31, 2018 | | | | | 222,333 | | | | | | 12.00 | | | | | | 2.84 | | | | | $ | 1,390 | | |
Exercisable at December 31, 2018 | | | | | 194,783 | | | | | $ | 11.31 | | | | | | 2.31 | | | | | $ | 1,352 | | |
| | | 2018 | | | 2017 | | ||||||
Basic earnings per share: | | | | ||||||||||
Net Income | | | | $ | 2,106 | | | | | $ | 1,814 | | |
Total weighted average common stock outstanding | | | | | 4,910 | | | | | | 4,706 | | |
Net income per share | | | | $ | 0.43 | | | | | $ | 0.39 | | |
Diluted earnings per share: | | | | ||||||||||
Net Income | | | | $ | 2,106 | | | | | $ | 1,814 | | |
Total weighted average common stock outstanding | | | | | 4,910 | | | | | | 4,706 | | |
Add: Dilutive effect of employee stock options | | | | | 219 | | | | | | 208 | | |
Total weighted average diluted stock outstanding | | | | | 5,129 | | | | | | 4,914 | | |
Net income per share | | | | $ | 0.41 | | | | | $ | 0.37 | | |
(In thousands) | | | 2018 | | | 2017 | | ||||||
Assets | | | | ||||||||||
Cash | | | | $ | 17,798 | | | | | $ | 13,265 | | |
Investment in Subsidiaries | | | | | 62,087 | | | | | | 44,280 | | |
Other Assets | | | | | — | | | | | | 50 | | |
| | | | $ | 79,885 | | | | | $ | 57,595 | | |
Liabilities and Shareholders’ Equity | | | | ||||||||||
Other Liabilities | | | | | 204 | | | | | | 3 | | |
Shareholders’ equity | | | | | 79,681 | | | | | | 57,592 | | |
| | | | $ | 79,885 | | | | | $ | 57,595 | | |
| | | 2018 | | | 2017 | | ||||||
(In thousands) | | | | ||||||||||
Income | | | | $ | — | | | | | $ | — | | |
Interest Expenses | | | | | — | | | | | | — | | |
Non-interest expenses | | | | | 897 | | | | | | 272 | | |
Income (loss) before income taxes and equity in undistributed income of subsidiaries | | | | $ | (897) | | | | | $ | (272) | | |
Income tax provision (benefit) | | | | | — | | | | | | — | | |
Income (loss) before equity in undistributed income of subsidiaries | | | | | (897) | | | | | | (272) | | |
Equity in undistributed income of subsidiaries | | | | | 3,003 | | | | | | 2,086 | | |
Net Income | | | | $ | 2,106 | | | | | $ | 1,814 | | |
|
| Cash flows from operating activities | | | | ||||||||||
| Adjustments to reconcile net income to net cash from operating activities: | | | | ||||||||||
| Net income (loss) | | | | $ | 2,106 | | | | | $ | 1,814 | | |
| Equity in undistributed income of subsidiaries | | | | | (3,003) | | | | | | (2,086) | | |
| Net (increase) decrease in other assets | | | | | 50 | | | | | | 12 | | |
| Net increase (decrease) in other liabilities | | | | | 200 | | | | | | — | | |
| Net cash used in operating activities | | | | | (647) | | | | | | (260) | | |
| Cash flows from investing activities | | | | ||||||||||
| Investment in subsidiaries | | | | | (14,986) | | | | | | (9,350) | | |
| Net cash used in investing activities | | | | | (14,986) | | | | | | (9,350) | | |
| Cash flows from financing activities | | | | ||||||||||
| Issuance of commons stock, net of related expense | | | | | 19,998 | | | | | | 18,880 | | |
| Stock based employment benefit plans | | | | | 168 | | | | | | 105 | | |
| Net cash provided by financing activities | | | | | 20,166 | | | | | | 18,905 | | |
| Increase in cash and cash equivalents | | | | | 4,533 | | | | | | 9,295 | | |
| Cash and cash equivalents at beginning of year | | | | | 13,265 | | | | | | 3,970 | | |
| Cash and cash equivalents at end of year | | | | $ | 17,798 | | | | | $ | 13,265 | | |
| Supplemental cash flow information: | | | | ||||||||||
| Cash paid during the year for taxes | | | | $ | 1,005 | | | | | $ | 1,800 | | |
| Interim Financial Statements | | | |||||
| | | | | F-56 | | | |
| | | | | F-57 | | | |
| | | | | F-58 | | | |
| | | | | F-59 | | | |
| | | | | F-61 | | | |
| | | | | F-62 | | | |
| | | | | F-81 | | | |
| Annual Financial Statements | | | |||||
| | | | | F-82 | | | |
| | | | | F-83 | | | |
| | | | | F-85 | | | |
| | | | | F-86 | | | |
| | | | | F-87 | | |
| | | September 30, 2019 | | | December 31, 2018 | | ||||||
ASSETS | | | | ||||||||||
Cash on hand and due from financial institutions | | | | $ | 13,554,073 | | | | | $ | 16,720,631 | | |
Interest-bearing balances with financial institutions | | | | | 67,235,456 | | | | | | 49,907,408 | | |
Cash and cash equivalents | | | | | 80,789,529 | | | | | | 66,628,039 | | |
Securities available for sale, at fair value | | | | | 26,170,629 | | | | | | 31,970,846 | | |
Securities held to maturity, (fair value 2019 – $1,493,318 and 2018 − $1,533,969) | | | | | 1,497,746 | | | | | | 1,548,778 | | |
Loans, net of allowance of $5,293,897 in 2019 and $4,862,807 in 2018 | | | | | 559,975,268 | | | | | | 551,363,715 | | |
Premises and equipment, net | | | | | 1,000,300 | | | | | | 1,048,857 | | |
Federal Home Loan Bank stock, at cost | | | | | 1,871,100 | | | | | | 3,672,800 | | |
Accrued interest receivable | | | | | 1,712,194 | | | | | | 1,920,074 | | |
Other real estate owned | | | | | 1,707,825 | | | | | | 1,707,825 | | |
Deferred tax asset, net | | | | | 1,594,075 | | | | | | 1,566,932 | | |
Other assets | | | | | 500,522 | | | | | | 896,040 | | |
| | | | $ | 676,819,188 | | | | | $ | 662,323,906 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | | |
Non-interest bearing | | | | $ | 147,307,791 | | | | | $ | 116,994,924 | | |
Interest bearing | | | | | 430,597,770 | | | | | | 407,236,543 | | |
Total deposits | | | | | 577,905,561 | | | | | | 524,231,467 | | |
Federal Home Loan Bank advances | | | | | 30,000,000 | | | | | | 75,000,000 | | |
Subordinated notes payable, net | | | | | 9,709,728 | | | | | | 9,669,735 | | |
Accrued interest payable | | | | | 689,083 | | | | | | 559,962 | | |
Other liabilities | | | | | 2,070,601 | | | | | | 2,057,930 | | |
Total liabilities | | | | | 620,374,973 | | | | | | 611,519,094 | | |
Stockholders’ equity | | | | | | | | | | | | | |
Common stock, $5 par value, 5,000,000 shares authorized; issued and outstanding 3,419,188 shares in 2019; 3,411,946 shares in 2018 | | | | | 17,095,940 | | | | | | 17,059,730 | | |
Additional paid-in capital | | | | | 19,000,454 | | | | | | 18,377,169 | | |
Retained earnings | | | | | 20,300,502 | | | | | | 15,591,404 | | |
Accumulated other comprehensive gain (loss) | | | | | 47,319 | | | | | | (223,491) | | |
Total stockholders’ equity | | | | | 56,444,215 | | | | | | 50,804,812 | | |
| | | | $ | 676,819,188 | | | | | $ | 662,323,906 | | |
| | | 2019 | | | 2018 | | ||||||
Interest income | | | | | | | | | | | | | |
Loans, including fees | | | | $ | 22,848,987 | | | | | $ | 19,379,470 | | |
Investment securities | | | | | 608,814 | | | | | | 453,831 | | |
Interest bearing accounts in other financial institutions | | | | | 859,423 | | | | | | 604,379 | | |
| | | | | 24,317,224 | | | | | | 20,437,680 | | |
Interest expense | | | | | | | | | | | | | |
Deposits | | | | | 6,386,713 | | | | | | 3,757,781 | | |
Borrowings | | | | | 1,277,683 | | | | | | 1,133,557 | | |
| | | | | 7,664,396 | | | | | | 4,891,338 | | |
Net interest income | | | | | 16,652,828 | | | | | | 15,546,342 | | |
Provision for loan losses | | | | | 367,000 | | | | | | 712,000 | | |
Net interest income after provision for loan losses | | | | | 16,285,828 | | | | | | 14,834,342 | | |
Noninterest income | | | | | | | | | | | | | |
Service charges on deposit accounts | | | | | 592,831 | | | | | | 554,059 | | |
Gain on sale of loans | | | | | 312,121 | | | | | | 115,729 | | |
Other income | | | | | 235,439 | | | | | | 160,678 | | |
| | | | | 1,140,391 | | | | | | 830,466 | | |
Noninterest expense | | | | | | | | | | | | | |
Salaries and employee benefits | | | | | 6,154,529 | | | | | | 5,531,266 | | |
Occupancy and equipment | | | | | 1,111,261 | | | | | | 1,010,011 | | |
Telecommunication expense | | | | | 111,805 | | | | | | 83,509 | | |
Data processing | | | | | 456,013 | | | | | | 403,174 | | |
Other real estate owned expense | | | | | 107,448 | | | | | | — | | |
Professional fees | | | | | 516,424 | | | | | | 336,542 | | |
Printing and supplies | | | | | 60,548 | | | | | | 69,353 | | |
Regulatory assessments | | | | | 199,414 | | | | | | 342,433 | | |
Directors’ compensation | | | | | 756,165 | | | | | | 692,960 | | |
Marketing | | | | | 96,061 | | | | | | 147,316 | | |
Other | | | | | 551,364 | | | | | | 437,714 | | |
| | | | | 10,121,032 | | | | | | 9,054,278 | | |
Income before income taxes | | | | | 7,305,187 | | | | | | 6,610,530 | | |
Income tax expense | | | | | 1,843,887 | | | | | | 1,736,561 | | |
Net Income | | | | $ | 5,461,300 | | | | | $ | 4,873,969 | | |
Earnings per share: | | | | | | | | | | | | | |
Basic | | | | $ | 1.60 | | | | | $ | 1.43 | | |
Diluted | | | | $ | 1.43 | | | | | $ | 1.37 | | |
| | | 2019 | | | 2018 | | ||||||
Net income | | | | $ | 5,461,300 | | | | | $ | 4,873,969 | | |
Other comprehensive gain (loss): | | | | | | | | | | | | | |
Unrealized gains (losses) on securities available for sale: | | | | | | | | | | | | | |
Unrealized holding gain (loss) arising during the period | | | | | 362,748 | | | | | | (476,361) | | |
Tax effect | | | | | (91,938) | | | | | | 120,734 | | |
Total other comprehensive gain (loss) | | | | | 270,810 | | | | | | (355,627) | | |
Comprehensive income | | | | $ | 5,732,110 | | | | | $ | 4,518,342 | | |
| | | Preferred Shares | | | Preferred Stock | | | Common Shares | | | Common Stock | | | Additional Paid in Capital | | | Retained Earnings | | | Accumulated Other Comprehensive Loss | | | Total | | ||||||||||||||||||||||||
Balance at January 1, 2018 | | | | | — | | | | | $ | — | | | | | | 3,394,690 | | | | | $ | 16,973,450 | | | | | $ | 17,497,406 | | | | | $ | 8,783,421 | | | | | $ | (106,991) | | | | | $ | 43,147,286 | | |
Common stock issuance | | | | | — | | | | | | — | | | | | | 8,226 | | | | | | 41,130 | | | | | | 58,199 | | | | | | — | | | | | | — | | | | | | 99,329 | | |
Stock based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 170,546 | | | | | | — | | | | | | — | | | | | | 170,546 | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,579,788 | | | | | | — | | | | | | 1,579,788 | | |
Total other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (164,852) | | | | | | (164,852) | | |
Balance at March 31, 2018 | | | | | — | | | | | $ | — | | | | | | 3,402,916 | | | | | $ | 17,014,580 | | | | | $ | 17,726,151 | | | | | $ | 10,363,209 | | | | | $ | (271,843) | | | | | $ | 44,832,097 | | |
Common stock issuance | | | | | — | | | | | | — | | | | | | 1,495 | | | | | | 7,475 | | | | | | 11,960 | | | | | | — | | | | | | — | | | | | | 19,435 | | |
Stock based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 174,969 | | | | | | — | | | | | | — | | | | | | 174,969 | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,642,142 | | | | | | — | | | | | | 1,642,142 | | |
Total other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (52,340) | | | | | | (52,340) | | |
Balance at June 30, 2018 | | | | | — | | | | | $ | — | | | | | | 3,404,411 | | | | | $ | 17,022,055 | | | | | $ | 17,913,080 | | | | | $ | 12,005,351 | | | | | $ | (324,183) | | | | | $ | 46,616,303 | | |
Common stock issuance | | | | | — | | | | | | — | | | | | | 7,535 | | | | | | 37,675 | | | | | | 22,605 | | | | | | — | | | | | | — | | | | | | 60,280 | | |
Stock based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 210,855 | | | | | | — | | | | | | — | | | | | | 210,855 | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,652,038 | | | | | | — | | | | | | 1,652,038 | | |
Total other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (138,435) | | | | | | (138,435) | | |
Balance at September 30, 2018 | | | | | — | | | | | $ | — | | | | | | 3,411,946 | | | | | $ | 17,059,730 | | | | | $ | 18,146,540 | | | | | $ | 13,657,389 | | | | | $ | (462,618) | | | | | $ | 48,401,041 | | |
|
| | | Preferred Shares | | | Preferred Stock | | | Common Shares | | | Common Stock | | | Additional Paid in Capital | | | Retained Earnings | | | Accumulated Other Comprehensive Income (Loss) | | | Total | | ||||||||||||||||||||||||
Balance at January 1, 2019 | | | | | — | | | | | $ | — | | | | | | 3,411,946 | | | | | $ | 17,059,730 | | | | | $ | 18,377,169 | | | | | $ | 15,591,404 | | | | | $ | (223,491) | | | | | $ | 50,804,812 | | |
Stock based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 198,465 | | | | | | — | | | | | | — | | | | | | 198,465 | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,912,011 | | | | | | — | | | | | | 1,912,011 | | |
Total other comprehensive income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 102,215 | | | | | | 102,215 | | |
Balance at March 31, 2019 | | | | | — | | | | | $ | — | | | | | | 3,411,946 | | | | | $ | 17,059,730 | | | | | $ | 18,575,634 | | | | | $ | 17,503,415 | | | | | $ | (121,276) | | | | | $ | 53,017,503 | | |
Common stock issuance | | | | | — | | | | | | — | | | | | | 7,142 | | | | | | 35,710 | | | | | | 27,997 | | | | | | — | | | | | | — | | | | | | 63,707 | | |
Stock based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 199,505 | | | | | | — | | | | | | — | | | | | | 199,505 | | |
Cash dividend declared ($0.11 per share) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (376,100) | | | | | | — | | | | | | (376,100) | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,499,942 | | | | | | — | | | | | | 1,499,942 | | |
Total other comprehensive income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 187,777 | | | | | | 187,777 | | |
Balance at June 30, 2019 | | | | | — | | | | | $ | — | | | | | | 3,419,088 | | | | | $ | 17,095,440 | | | | | $ | 18,803,136 | | | | | $ | 18,627,257 | | | | | $ | 66,501 | | | | | $ | 54,592,334 | | |
Common stock issuance | | | | | — | | | | | | — | | | | | | 100 | | | | | | 500 | | | | | | 300 | | | | | | — | | | | | | — | | | | | | 800 | | |
Stock based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 197,018 | | | | | | — | | | | | | — | | | | | | 197,018 | | |
Cash dividend declared ($0.11 per share) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (376,100) | | | | | | — | | | | | | (376,100) | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,049,345 | | | | | | — | | | | | | 2,049,345 | | |
Total other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (19,182) | | | | | | (19,182) | | |
Balance at September 30, 2019 | | | | | — | | | | | $ | — | | | | | | 3,419,188 | | | | | $ | 17,095,940 | | | | | $ | 19,000,454 | | | | | $ | 20,300,502 | | | | | $ | 47,319 | | | | | $ | 56,444,215 | | |
|
| | | 2019 | | | 2018 | | ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net income | | | | $ | 5,461,300 | | | | | $ | 4,873,969 | | |
Adjustments to reconcile net income to net cash | | | | | | | | | | | | | |
From operating activities | | | | | | | | | | | | | |
Provision for loan losses | | | | | 367,000 | | | | | | 712,000 | | |
Loans originated held for sale | | | | | (534,000) | | | | | | (1,486,000) | | |
Proceeds from sales of loans held for sale | | | | | 534,000 | | | | | | 1,486,000 | | |
Net gain on sale of loans | | | | | (312,121) | | | | | | (115,729) | | |
Increase of deferred income tax | | | | | (119,082) | | | | | | (422,548) | | |
Depreciation and amortization | | | | | 253,357 | | | | | | 225,972 | | |
Shared based compensation | | | | | 594,988 | | | | | | 556,370 | | |
Provision for off – balance sheet items | | | | | 18,633 | | | | | | 85,628 | | |
Net amortization of premium and discount on securities | | | | | 119,820 | | | | | | 143,522 | | |
Amortization of subordinated note payable discount and debt issuance costs | | | | | 39,993 | | | | | | 42,885 | | |
Net change in: | | | | | | | | | | | | | |
Accrued interest receivable and other assets | | | | | 603,399 | | | | | | (661,772) | | |
Accrued interest payable and other liabilities | | | | | 123,159 | | | | | | (992,573) | | |
Net cash from operating activities | | | | | 7,150,446 | | | | | | 4,447,724 | | |
Cash flows from investing activities | | | | | | | | | | | | | |
Redemption of time deposits with financial institutions | | | | | — | | | | | | 1,406,983 | | |
Purchase of securities available for sale | | | | | (3,648,132) | | | | | | (19,497,576) | | |
Purchase of securities held to maturity | | | | | (1,201,259) | | | | | | — | | |
Proceeds from maturities and calls of securities available for sale | | | | | 4,200,000 | | | | | | — | | |
Proceeds from repayment of securities available for sale | | | | | 5,494,516 | | | | | | 2,054,585 | | |
Proceeds from repayment on securities held to maturity | | | | | 49,050 | | | | | | 52,299 | | |
Proceeds from maturities on securities held to maturity | | | | | 1,200,000 | | | | | | — | | |
Purchase of Federal Home Loan Bank stock | | | | | (5,380,800) | | | | | | (4,515,700) | | |
Proceeds from sale of Federal Home Loan Bank stock | | | | | 7,182,500 | | | | | | 3,527,500 | | |
Loan originations and payments, net | | | | | (8,666,432) | | | | | | (75,691,484) | | |
Capital expenditures | | | | | (204,800) | | | | | | (81,130) | | |
Net cash from investing activities | | | | | (975,357) | | | | | | (92,744,523) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Net increase in deposits | | | | | 53,674,094 | | | | | | 78,995,491 | | |
Proceeds from Federal Home Loan Bank Advances | | | | | 124,000,000 | | | | | | 110,000,000 | | |
Repayment of Federal Home Loan Bank Advances | | | | | (169,000,000) | | | | | | (89,000,000) | | |
Cash dividends to shareholders | | | | | (752,200) | | | | | | — | | |
Proceeds from issuance of common stock | | | | | 64,507 | | | | | | 179,044 | | |
Net cash from financing activities | | | | | 7,986,401 | | | | | | 100,174,535 | | |
Net change in cash and cash equivalents | | | | | 14,161,490 | | | | | | 11,877,736 | | |
Beginning cash and cash equivalents | | | | | 66,628,039 | | | | | | 54,609,504 | | |
Ending cash and cash equivalents | | | | $ | 80,789,529 | | | | | $ | 66,487,240 | | |
Supplemental cash flow information: | | | | | | | | | | | | | |
Interest paid | | | | | 7,535,275 | | | | | | 4,502,389 | | |
Income taxes paid | | | | | 1,815,000 | | | | | | 2,380,000 | | |
September 30, 2019 | | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
Available for Sale | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government agencies | | | | $ | 3,266,627 | | | | | $ | — | | | | | $ | (86,567) | | | | | $ | 3,180,060 | | |
U.S. government sponsored entities | | | | | 20,791,487 | | | | | | 158,302 | | | | | | (39,782) | | | | | | 20,910,007 | | |
State, county and municipal bonds | | | | | 1,048,860 | | | | | | 26,166 | | | | | | — | | | | | | 1,075,026 | | |
Corporate bonds | | | | | 1,000,271 | | | | | | 5,265 | | | | | | — | | | | | | 1,005,536 | | |
Total Available for Sale | | | | $ | 26,107,245 | | | | | $ | 189,733 | | | | | $ | (126,349) | | | | | $ | 26,170,629 | | |
|
| | | Amortized Cost | | | Gross Unrecognized Gains | | | Gross Unrecognized Losses | | | Fair Value | | ||||||||||||
Held to Maturity | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. treasuries | | | | $ | 201,059 | | | | | $ | 160 | | | | | $ | — | | | | | $ | 201,219 | | |
U.S. government sponsored entities | | | | | 296,687 | | | | | | 117 | | | | | | (5,115) | | | | | | 291,689 | | |
Foreign Sovereign (Israel) | | | | | 1,000,000 | | | | | | 410 | | | | | | — | | | | | | 1,000,410 | | |
Total Held to Maturity | | | | $ | 1,497,746 | | | | | $ | 687 | | | | | $ | (5,115) | | | | | $ | 1,493,318 | | |
|
December 31, 2018 | | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
Available for Sale | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government agencies | | | | $ | 4,181,794 | | | | | $ | — | | | | | $ | (107,668) | | | | | $ | 4,074,126 | | |
U.S. government sponsored entities | | | | | 25,533,218 | | | | | | 35,662 | | | | | | (220,639) | | | | | | 25,348,241 | | |
State, county and municipal bonds | | | | | 1,054,225 | | | | | | — | | | | | | (15,169) | | | | | | 1,039,056 | | |
Corporate bonds | | | | | 1,500,973 | | | | | | 8,450 | | | | | | — | | | | | | 1,509,423 | | |
Total Available for Sale | | | | $ | 32,270,210 | | | | | $ | 44,112 | | | | | $ | (343,476) | | | | | $ | 31,970,846 | | |
|
| | | Amortized Cost | | | Gross Unrecognized Gains | | | Gross Unrecognized Losses | | | Fair Value | | ||||||||||||
Held to Maturity | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. treasuries | | | | $ | 199,912 | | | | | $ | — | | | | | $ | (1,162) | | | | | $ | 198,750 | | |
U.S. government sponsored entities | | | | | 348,866 | | | | | | 148 | | | | | | (13,795) | | | | | | 335,219 | | |
Foreign Sovereign (Israel) | | | | | 1,000,000 | | | | | | — | | | | | | — | | | | | | 1,000,000 | | |
Total Held to Maturity | | | | $ | 1,548,778 | | | | | $ | 148 | | | | | $ | (14,957) | | | | | $ | 1,533,969 | | |
| | | September 30, 2019 | | |||||||||
| | | Amortized Cost | | | Fair Value | | ||||||
Available for Sale | | | | ||||||||||
Within one year | | | | $ | 2,501,397 | | | | | $ | 2,499,217 | | |
One to five years | | | | | 7,498,747 | | | | | | 7,541,971 | | |
Over five to ten years | | | | | 8,664,626 | | | | | | 8,741,732 | | |
Over ten years | | | | | 7,442,475 | | | | | | 7,387,709 | | |
Total | | | | $ | 26,107,245 | | | | | $ | 26,170,629 | | |
Held to Maturity | | | | | | | | | | | | | |
Within one year | | | | $ | 2,948 | | | | | $ | 3,065 | | |
One to five years | | | | | 1,201,059 | | | | | | 1,201,629 | | |
Over five to ten years | | | | | — | | | | | | — | | |
Over ten years | | | | | 293,739 | | | | | | 288,624 | | |
Total | | | | $ | 1,497,746 | | | | | $ | 1,493,318 | | |
|
| | | December 31, 2018 | | |||||||||
| | | Amortized Cost | | | Fair Value | | ||||||
Available for Sale | | | | ||||||||||
Within one year | | | | $ | 500,000 | | | | | $ | 500,353 | | |
One to five years | | | | | 16,684,471 | | | | | | 16,627,417 | | |
Over five to ten years | | | | | 9,416,578 | | | | | | 9,315,487 | | |
Over ten years | | | | | 5,669,161 | | | | | | 5,527,589 | | |
Total | | | | $ | 32,270,210 | | | | | $ | 31,970,846 | | |
Held to Maturity | | | | | | | | | | | | | |
Within one year | | | | $ | 1,199,912 | | | | | $ | 1,198,750 | | |
One to five years | | | | | 5,538 | | | | | | 5,686 | | |
Over five to ten years | | | | | — | | | | | | — | | |
Over ten years | | | | | 343,328 | | | | | | 329,533 | | |
Total | | | | $ | 1,548,778 | | | | | $ | 1,533,969 | | |
| | | Less Than 12 Months | | | 12 Months or Longer | | | Total | | |||||||||||||||||||||||||||
September 30, 2019 | | | Fair Value | | | Unrealized Losses | | | Fair Value | | | Unrealized Losses | | | Fair Value | | | Unrealized Losses | | ||||||||||||||||||
Available for Sale | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Gov. Agencies | | | | $ | — | | | | | $ | — | | | | | $ | 3,180,060 | | | | | $ | (86,567) | | | | | $ | 3,180,060 | | | | | $ | (86,567) | | |
U.S. Government sponsored entities | | | | | 6,377,814 | | | | | | (14,811) | | | | | | 3,485,318 | | | | | | (24,971) | | | | | | 9,863,132 | | | | | | (39,782) | | |
Total Available for Sale | | | | $ | 6,377,814 | | | | | $ | (14,811) | | | | | $ | 6,665,378 | | | | | $ | (111,538) | | | | | $ | 13,043,192 | | | | | $ | (126,349) | | |
|
| | | Less Than 12 Months | | | 12 Months or Longer | | | Total | | |||||||||||||||||||||||||||
September 30, 2019 | | | Fair Value | | | Unrecognized Losses | | | Fair Value | | | Unrecognized Losses | | | Fair Value | | | Unrecognized Losses | | ||||||||||||||||||
Held to Maturity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Government sponsored entities | | | | $ | — | | | | | $ | — | | | | | $ | 288,624 | | | | | $ | (5,115) | | | | | $ | 288,624 | | | | | $ | (5,115) | | |
Total Held to Maturity | | | | $ | — | | | | | $ | — | | | | | $ | 288,624 | | | | | $ | (5,115) | | | | | $ | 288,624 | | | | | $ | (5,115) | | |
|
| | | Less Than 12 Months | | | 12 Months or Longer | | | Total | | |||||||||||||||||||||||||||
December 31, 2018 | | | Fair Value | | | Unrealized Losses | | | Fair Value | | | Unrealized Losses | | | Fair Value | | | Unrealized Losses | | ||||||||||||||||||
Available for Sale | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Gov. Agencies | | | | $ | 402,429 | | | | | $ | (5,560) | | | | | $ | 3,671,697 | | | | | $ | (102,108) | | | | | $ | 4,074,126 | | | | | $ | (107,668) | | |
U.S. Government sponsored entities | | | | | 5,033,957 | | | | | | (36,305) | | | | | | 8,804,943 | | | | | | (184,334) | | | | | | 13,838,900 | | | | | | (220,639) | | |
State, county and municipal bonds | | | | | 525,225 | | | | | | (718) | | | | | | 513,831 | | | | | | (14,451) | | | | | | 1,039,056 | | | | | | (15,169) | | |
Total Available for Sale | | | | $ | 5,961,611 | | | | | $ | (42,583) | | | | | $ | 12,990,471 | | | | | $ | (300,893) | | | | | $ | 18,952,082 | | | | | $ | (343,476) | | |
|
| | | Less Than 12 Months | | | 12 Months or Longer | | | Total | | |||||||||||||||||||||||||||
December 31, 2018 | | | Fair Value | | | Unrecognized Losses | | | Fair Value | | | Unrecognized Losses | | | Fair Value | | | Unrecognized Losses | | ||||||||||||||||||
Held to Maturity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Gov. Agencies | | | | $ | — | | | | | $ | — | | | | | $ | 198,750 | | | | | $ | (1,162) | | | | | $ | 198,750 | | | | | $ | (1,162) | | |
U.S. Government sponsored entities | | | | | — | | | | | | — | | | | | | 329,533 | | | | | | (13,795) | | | | | | 329,533 | | | | | | (13,795) | | |
Total Held to Maturity | | | | $ | — | | | | | $ | — | | | | | $ | 528,283 | | | | | $ | (14,957) | | | | | $ | 528,283 | | | | | $ | (14,957) | | |
| | | 2019 | | | 2018 | | ||||||
Commercial | | | | $ | 72,902,412 | | | | | $ | 80,171,846 | | |
Real Estate: | | | | | | | | | | | | | |
Residential | | | | | 3,514,674 | | | | | | 3,769,129 | | |
Commercial | | | | | 422,799,372 | | | | | | 403,444,475 | | |
Home equity lines of credit (HELOC) | | | | | 61,470,715 | | | | | | 65,798,734 | | |
Consumer and other | | | | | 4,882,104 | | | | | | 3,408,497 | | |
| | | | | 565,569,277 | | | | | | 556,592,681 | | |
Plus (Less): Fees and Costs | | | | | (300,112) | | | | | | (366,159) | | |
Less: Allowance for loan losses | | | | | (5,293,897) | | | | | | (4,862,807) | | |
Loans, net | | | | $ | 559,975,268 | | | | | $ | 551,363,715 | | |
| | | | | | | | | Real Estate | | | | | | | | | | | | | | | | | | | | |||||||||||||||
| | | Commercial | | | Residential | | | Commercial | | | HELOC | | | Consumer & Other | | | Unallocated | | | Total | | |||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 846,485 | | | | | $ | 26,384 | | | | | $ | 3,298,020 | | | | | $ | 660,331 | | | | | $ | 31,587 | | | | | $ | — | | | | | $ | 4,862,807 | | |
Provision for loan losses | | | | | (148,126) | | | | | | (1,781) | | | | | | 469,957 | | | | | | 23,435 | | | | | | 3,275 | | | | | | 20,240 | | | | | | 367,000 | | |
Charge-offs | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (777) | | | | | | | | | | | | (777) | | |
Recoveries | | | | | 59,867 | | | | | | | | | | | | | | | | | | | | | | | | 5,000 | | | | | | | | | | | | 64,867 | | |
Ending balance | | | | $ | 758,226 | | | | | $ | 24,603 | | | | | $ | 3,767,977 | | | | | $ | 683,766 | | | | | $ | 39,085 | | | | | $ | 20,240 | | | | | $ | 5,293,897 | | |
| | | | | | | | | Real Estate | | | | | | | | | | | | | | | | | | | | |||||||||||||||
| | | Commercial | | | Residential | | | Commercial | | | HELOC | | | Consumer & Other | | | Unallocated | | | Total | | |||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 567,669 | | | | | $ | 22,733 | | | | | $ | 2,994,235 | | | | | $ | 577,204 | | | | | $ | 37,111 | | | | | $ | — | | | | | $ | 4,198,952 | | |
Provision for loan losses | | | | | 215,874 | | | | | | (4,137) | | | | | | 218,847 | | | | | | 127,043 | | | | | | 5,458 | | | | | | 148,915 | | | | | | 712,000 | | |
Charge-offs | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Recoveries | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,298 | | | | | | — | | | | | | 3,298 | | |
Ending balance | | | | $ | 783,543 | | | | | $ | 18,596 | | | | | $ | 3,213,082 | | | | | $ | 704,247 | | | | | $ | 45,867 | | | | | $ | 148,915 | | | | | $ | 4,914,250 | | |
|
| | | | | | | | | Real Estate | | | Consumer & Other | | | | | | | | | | | | | | ||||||||||||||||||
| | | Commercial | | | Residential | | | Commercial | | | HELOC | | | Unallocated | | | Total | | ||||||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending allowance balance attributable to loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Collectively evaluated for impairment | | | | | 758,226 | | | | | | 24,603 | | | | | | 3,767,977 | | | | | | 683,766 | | | | | | 39,085 | | | | | | 20,240 | | | | | | 5,293,897 | | |
Total ending balance | | | | $ | 758,226 | | | | | $ | 24,603 | | | | | $ | 3,767,977 | | | | | $ | 683,766 | | | | | $ | 39,085 | | | | | $ | 20,240 | | | | | $ | 5,293,897 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 110,199 | | | | | $ | — | | | | | $ | — | | | | | $ | 110,199 | | |
Loans collectively evaluated for impairment | | | | | 72,902,412 | | | | | | 3,514,674 | | | | | | 422,799,372 | | | | | | 61,360,516 | | | | | | 4,882,104 | | | | | | — | | | | | | 565,459,078 | | |
Total ending loans balance | | | | $ | 72,902,412 | | | | | $ | 3,514,674 | | | | | $ | 422,799,372 | | | | | $ | 61,470,715 | | | | | $ | 4,882,104 | | | | | $ | — | | | | | $ | 565,569,277 | | |
| | | | | | | | | Real Estate | | | Consumer & Other | | | | | | | | | | | | | | ||||||||||||||||||
December 31, 2018 | | | Commercial | | | Residential | | | Commercial | | | HELOC | | | Unallocated | | | Total | | ||||||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending allowance balance attributable to loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 69,134 | | | | | $ | — | | | | | $ | — | | | | | $ | 69,134 | | |
Collectively evaluated for impairment | | | | | 846,485 | | | | | | 26,384 | | | | | | 3,298,020 | | | | | | 591,197 | | | | | | 31,587 | | | | | | — | | | | | | 4,793,673 | | |
Total ending balance | | | | $ | 846,485 | | | | | $ | 26,384 | | | | | $ | 3,298,020 | | | | | $ | 660,331 | | | | | $ | 31,587 | | | | | $ | — | | | | | $ | 4,862,807 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | | | | $ | 294,245 | | | | | $ | — | | | | | $ | — | | | | | $ | 110,199 | | | | | $ | — | | | | | $ | — | | | | | $ | 404,444 | | |
Loans collectively evaluated for impairment | | | | | 79,877,601 | | | | | | 3,769,129 | | | | | | 403,444,475 | | | | | | 65,688,535 | | | | | | 3,408,497 | | | | | | — | | | | | | 556,188,237 | | |
Total ending loans balance | | | | $ | 80,171,846 | | | | | $ | 3,769,129 | | | | | $ | 403,444,475 | | | | | $ | 65,798,734 | | | | | $ | 3,408,497 | | | | | $ | — | | | | | $ | 556,592,681 | | |
| | | 2019 | | | 2018 | | ||||||
Average of individually impaired loans during year | | | | $ | 208,642 | | | | | $ | 404,444 | | |
Interest income recognized during impairment | | | | | — | | | | | | 61,015 | | |
Cash-basis interest income recognized | | | | | — | | | | | | — | | |
2019 | | | Pass | | | Special Mention | | | Substandard | | | Doubtful | | | Total | | |||||||||||||||
Commercial | | | | $ | 72,902,412 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 72,902,412 | | |
Real Estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential | | | | | 3,514,674 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,514,674 | | |
Commercial | | | | | 422,799,372 | | | | | | — | | | | | | — | | | | | | — | | | | | | 422,799,372 | | |
Home Equity Line of Credit | | | | | 61,360,516 | | | | | | — | | | | | | 110,199 | | | | | | — | | | | | | 61,470,715 | | |
Consumer and other | | | | | 4,882,104 | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,882,104 | | |
Total | | | | $ | 565,459,078 | | | | | $ | — | | | | | $ | 110,199 | | | | | $ | — | | | | | $ | 565,569,277 | | |
|
2018 | | | Pass | | | Special Mention | | | Substandard | | | Doubtful | | | Total | | |||||||||||||||
Commercial | | | | $ | 79,877,601 | | | | | $ | — | | | | | $ | 294,245 | | | | | $ | — | | | | | $ | 80,171,846 | | |
Real Estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential | | | | | 3,769,129 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,769,129 | | |
Commercial | | | | | 403,444,475 | | | | | | — | | | | | | — | | | | | | — | | | | | | 403,444,475 | | |
Home Equity Line of Credit | | | | | 65,688,535 | | | | | | — | | | | | | 110,199 | | | | | | — | | | | | | 65,798,734 | | |
Consumer and other | | | | | 3,408,497 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,408,497 | | |
Total | | | | $ | 556,188,237 | | | | | $ | — | | | | | $ | 404,444 | | | | | $ | — | | | | | $ | 556,592,681 | | |
| | | September 30, 2019 | | | December 31, 2018 | | ||||||
Leasehold improvements | | | | $ | 1,161,544 | | | | | $ | 1,110,252 | | |
Furniture and equipment | | | | | 1,528,311 | | | | | | 1,374,803 | | |
| | | | | 2,689,855 | | | | | | 2,485,055 | | |
Less: Accumulated depreciation | | | | | (1,689,555) | | | | | | (1,436,198) | | |
| | | | $ | 1,000,300 | | | | | $ | 1,048,857 | | |
| October 1 – December 31, 2019 | | | | $ | 176,253 | | |
| 2020 | | | | | 699,851 | | |
| 2021 | | | | | 677,658 | | |
| 2022 | | | | | 340,683 | | |
| 2023 | | | | | 100,887 | | |
| Thereafter | | | | | — | | |
| | | | | $ | 1,995,332 | | |
| 2019 | | | | $ | 73,440,672 | | |
| 2020 | | | | | 132,634,984 | | |
| 2021 | | | | | 14,655,234 | | |
| 2022 | | | | | 21,541,109 | | |
| 2023 | | | | | 300,000 | | |
| 2024 | | | | | 639,422 | | |
| | | | | $ | 243,211,421 | | |
| 2019 | | |||
| Amount | | | Rate | |
| $30,000,000 | | | 2.04% to 2.16% | |
| 2018 | | |||
| Amount | | | Rate | |
| $75,000,000 | | | 2.35% to 2.82% | |
| | | Nine Months Ended September 30, | | |||||||||
| | | 2019 | | | 2018 | | ||||||
Basic | | | | ||||||||||
Net income | | | | $ | 5,461,300 | | | | | $ | 4,873,969 | | |
Weighted average common shares outstanding | | | | | 3,416,730 | | | | | | 3,406,258 | | |
Basic earnings per common share | | | | $ | 1.60 | | | | | $ | 1.43 | | |
| | | 2019 | | | 2018 | | ||||||
Diluted | | | | ||||||||||
Net income | | | | $ | 5,461,300 | | | | | $ | 4,873,969 | | |
Weighted average common shares outstanding for basic earnings per common share | | | | | 3,416,730 | | | | | | 3,406,258 | | |
Add: Dilutive effects of assumed exercises of stock options | | | | | 394,308 | | | | | | 150,041 | | |
Average shares | | | | | 3,811,038 | | | | | | 3,556,299 | | |
Diluted | | | | $ | 1.43 | | | | | $ | 1.37 | | |
| | | 2019 | | | 2018 | | ||||||
Current | | | | $ | 1,962,969 | | | | | $ | 2,159,109 | | |
Deferred | | | | | (119,082) | | | | | | (422,548) | | |
Total | | | | $ | 1,843,887 | | | | | $ | 1,736,561 | | |
|
| | | 2019 | | | 2018 | | ||||||
Deferred tax assets | | | | ||||||||||
Organizational and start-up expenses | | | | $ | 33,193 | | | | | $ | 41,980 | | |
Capital losses | | | | | 25,345 | | | | | | 25,345 | | |
Stock option expense | | | | | 444,259 | | | | | | 341,731 | | |
Allowance for loan losses | | | | | 1,341,738 | | | | | | 1,232,478 | | |
Securities available for sale | | | | | (16,065) | | | | | | 75,874 | | |
Accrued expenses | | | | | 281,850 | | | | | | 247,812 | | |
Other | | | | | 2,172 | | | | | | 414 | | |
| | | | | 2,112,492 | | | | | | 1,965,634 | | |
Deferred tax liabilities | | | | ||||||||||
Accumulated depreciation | | | | | 197,996 | | | | | | 65,721 | | |
Deferred loan fees | | | | | 263,944 | | | | | | 265,557 | | |
Other | | | | | 31,132 | | | | | | 42,079 | | |
| | | | | 493,072 | | | | | | 373,357 | | |
Valuation allowance | | | | | 25,345 | | | | | | 25,345 | | |
Net deferred tax asset | | | | $ | 1,594,075 | | | | | $ | 1,566,932 | | |
| | | 2019 | | | 2018 | | ||||||
Federal statutory rate times financial statement income | | | | $ | 1,534,089 | | | | | $ | 1,388,211 | | |
Effect of state income tax (net of federal benefit) | | | | | 264,423 | | | | | | 293,148 | | |
Stock compensation | | | | | 29,959 | | | | | | 33,137 | | |
Other | | | | | 15,416 | | | | | | 22,065 | | |
| | | | $ | 1,843,887 | | | | | $ | 1,736,561 | | |
| | | 2019 | | | 2018 | | ||||||||||||||||||
| | | Principal | | | Unamortized Discount and Debt Issuance Costs | | | Principal | | | Unamortized Discount and Debt Issuance Costs | | ||||||||||||
7.0% subordinated debentures, due 2026 (discount is based on imputed interest rate of 7.458%) | | | | $ | 10,000,000 | | | | | $ | (290,272) | | | | | $ | 10,000,000 | | | | | $ | (330,265) | | |
Total | | | | $ | 10,000,000 | | | | | $ | (290,272) | | | | | $ | 10,000,000 | | | | | $ | (330,265) | | |
| | | 2018 | |
Risk-free interest rate | | | 2.59% – 2.78% | |
Expected life | | | 6 years | |
Expected volatility | | | 30% | |
Dividend yield | | | 0% | |
| | | Shares | | | Weighted Average Exercise Price | | | Weighted Average Remaining Contractual Term | | ||||||
Outstanding January 1, 2019 | | | | | 977,128 | | | | | $ | 11.88 | | | | 6.6 years | |
Granted | | | | | — | | | | | | — | | | | | |
Exercised | | | | | (7,242) | | | | | | 8.91 | | | | | |
Forfeited/Expired | | | | | (5,500) | | | | | | 12.15 | | | | | |
Outstanding September 30, 2019 | | | | | 964,386 | | | | | $ | 11.90 | | | | 5.8 years | |
Options vested and exercisable at period end | | | | | 686,329 | | | | | $ | 10.82 | | | | 4.8 years | |
Options not vested | | | | | 278,057 | | | | | $ | 14.58 | | | | 8.3 years | |
| | | Shares | | | Weighted Average Exercise Price | | | Weighted Average Remaining Contractual Term | | ||||||
Outstanding January 1, 2018 | | | | | 638,602 | | | | | $ | 10.17 | | | | 6 years | |
Granted | | | | | 358,332 | | | | | | 14.85 | | | | | |
Exercised | | | | | (17,256) | | | | | | 10.38 | | | | | |
Forfeited/Expired | | | | | (2,550) | | | | | | 9.65 | | | | | |
Outstanding December 31, 2018 | | | | | 977,128 | | | | | $ | 11.88 | | | | 6.6 years | |
Options vested and exercisable at end of year | | | | | 502,439 | | | | | $ | 9.60 | | | | 4.4 years | |
Options not vested | | | | | 474,689 | | | | | $ | 14.31 | | | | 8.9 years | |
| | | Actual | | | Minimum Required To Be Adequately Capitalized Plus Conservation Buffer | | | Minimum Required To Be Well Capitalized | | |||||||||||||||||||||||||||
September 30, 2019 | | | Amount | | | Ratio | | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||||||||
Total Capital to risk weighted assets | | | | | | | | ||||||||||||||||||||||||||||||
Consolidated | | | | $ | 71,838,702 | | | | | | 12.33% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Bank | | | | $ | 70,919,672 | | | | | | 12.17% | | | | | $ | 61,187,805 | | | | | | 10.50% | | | | | $ | 58,274,100 | | | | | | 10.00% | | |
Tier 1 (Core) Capital to risk weighted assets | | | | | | | | ||||||||||||||||||||||||||||||
Consolidated | | | | $ | 56,396,899 | | | | | | 9.68% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Bank | | | | $ | 65,187,597 | | | | | | 11.19% | | | | | $ | 49,532,985 | | | | | | 8.50% | | | | | $ | 46,619,280 | | | | | | 8.00% | | |
Common Tier 1 (CET 1) | | | | | | | | ||||||||||||||||||||||||||||||
Consolidated | | | | $ | 56,396,899 | | | | | | 9.68% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Bank | | | | $ | 65,187,597 | | | | | | 11.19% | | | | | $ | 40,791,870 | | | | | | 7.00% | | | | | $ | 37,878,165 | | | | | | 6.50% | | |
Tier 1 (Core) Capital to average assets | | | | | | | | ||||||||||||||||||||||||||||||
Consolidated | | | | $ | 56,396,899 | | | | | | 8.41% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Bank | | | | $ | 65,187,597 | | | | | | 9.72% | | | | | $ | 26,838,502 | | | | | | 4.00% | | | | | $ | 33,548,128 | | | | | | 5.00% | | |
| | | Actual | | | Minimum Required To Be Adequately Capitalized Plus Conservation Buffer | | | Minimum Required To Be Well Capitalized | | |||||||||||||||||||||||||||
December 31, 2018 | | | Amount | | | Ratio | | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||||||||
Total Capital to risk weighted assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | $ | 65,980,388 | | | | | | 11.53% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Bank | | | | $ | 65,167,154 | | | | | | 11.39% | | | | | $ | 56,494,381 | | | | | | 9.875% | | | | | $ | 57,209,500 | | | | | | 10.00% | | |
Tier 1 (Core) Capital to risk weighted assets | | | | | | | | ||||||||||||||||||||||||||||||
Consolidated | | | | $ | 51,028,303 | | | | | | 8.92% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Bank | | | | $ | 59,884,803 | | | | | | 10.47% | | | | | $ | 45,052,481 | | | | | | 7.875% | | | | | $ | 45,767,600 | | | | | | 8.00% | | |
Common Tier 1 (CET 1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | $ | 51,028,303 | | | | | | 8.92% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Bank | | | | $ | 59,884,803 | | | | | | 10.47% | | | | | $ | 36,471,056 | | | | | | 6.375% | | | | | $ | 37,186,175 | | | | | | 6.50% | | |
Tier 1 (Core) Capital to average assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | $ | 51,028,303 | | | | | | 8.08% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Bank | | | | $ | 59,884,803 | | | | | | 9.49% | | | | | $ | 25,251,000 | | | | | | 4.000% | | | | | $ | 31,563,750 | | | | | | 5.00% | | |
| | | | | | | | | Fair Value Measurements using: | | |||||||||||||||
| | | Fair Value | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | ||||||||||||
September 30, 2019 | | | | | | ||||||||||||||||||||
Assets | | | | | | ||||||||||||||||||||
U.S. government agencies | | | | $ | 3,180,060 | | | | | $ | — | | | | | $ | 3,180,060 | | | | | $ | — | | |
U.S. government sponsored entities | | | | | 20,910,007 | | | | | | — | | | | | | 20,910,007 | | | | | | — | | |
State, County and Municipal bonds | | | | | 1,075,026 | | | | | | — | | | | | | 1,075,026 | | | | | | — | | |
Corporate Bonds | | | | | 1,005,536 | | | | | | — | | | | | | 1,005,536 | | | | | | — | | |
Total securities available for sale | | | | $ | 26,170,629 | | | | | $ | — | | | | | $ | 26,170,629 | | | | | $ | — | | |
December 31, 2018 | | | | | | ||||||||||||||||||||
Assets | | | | | | ||||||||||||||||||||
U.S. government agencies | | | | $ | 4,074,126 | | | | | $ | — | | | | | $ | 4,074,126 | | | | | $ | — | | |
U.S. government sponsored entities | | | | | 25,348,241 | | | | | | — | | | | | | 25,348,241 | | | | | | — | | |
State, County and Municipal bonds | | | | | 1,039,056 | | | | | | — | | | | | | 1,039,056 | | | | | | — | | |
Corporate Bonds | | | | | 1,509,423 | | | | | | — | | | | | | 1,509,423 | | | | | | — | | |
Total securities available for sale | | | | $ | 31,970,846 | | | | | $ | — | | | | | $ | 31,970,846 | | | | | $ | — | | |
| | | | | | | | | Fair Value Measurements using: | | |||||||||||||||
| | | Fair Value | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | ||||||||||||
September 30, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired Loan (Home Equity) | | | | $ | 110,199 | | | | | $ | — | | | | | $ | — | | | | | $ | 110,199 | | |
Other Real Estate Owned (Residential) | | | | | 1,707,825 | | | | | | — | | | | | | 1,707,825 | | | | | | — | | |
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired Loan (Home Equity) | | | | $ | 110,199 | | | | | $ | — | | | | | $ | — | | | | | $ | 110,199 | | |
Impaired Loan (Commercial Line) | | | | | 294,245 | | | | | | — | | | | | | — | | | | | | 294,245 | | |
Other Real Estate Owned (Residential) | | | | | 1,707,825 | | | | | | — | | | | | | 1,707,825 | | | | | | — | | |
| | | | | F-81 | | | |
| CONSOLIDATED FINANCIAL STATEMENTS | | | |||||
| | | | | F-82 | | | |
| | | | | F-83 | | | |
| | | | | F-84 | | | |
| | | | | F-85 | | | |
| | | | | F-86 | | | |
| | | | | F-87 | | |
| | | | | |
| | | | Crowe LLP | |
| | | 2018 | | | 2017 | | ||||||
ASSETS | | | | ||||||||||
Cash on hand and due from financial institutions | | | | $ | 16,720,631 | | | | | $ | 12,514,224 | | |
Interest-bearing balances with financial institutions | | | | | 49,907,408 | | | | | | 42,095,280 | | |
Cash and cash equivalents | | | | | 66,628,039 | | | | | | 54,609,504 | | |
Interest-bearing time deposits | | | | | — | | | | | | 1,406,983 | | |
Securities available for sale, at fair value | | | | | 31,970,846 | | | | | | 16,645,207 | | |
Securities held to maturity, (fair value 2018 – $1,533,969 and 2017 – $1,609,876) | | | | | 1,548,778 | | | | | | 1,619,395 | | |
Loans, net of allowance of $4,862,807 in 2018 and $4,198,952 in 2017 | | | | | 551,363,715 | | | | | | 458,868,998 | | |
Premises and equipment, net | | | | | 1,048,857 | | | | | | 881,863 | | |
Federal Home Loan Bank stock, at cost | | | | | 3,672,800 | | | | | | 2,047,100 | | |
Accrued interest receivable | | | | | 1,920,074 | | | | | | 1,355,786 | | |
Other real estate owned | | | | | 1,707,825 | | | | | | — | | |
Deferred tax asset, net | | | | | 1,566,932 | | | | | | 1,144,724 | | |
Other assets | | | | | 896,040 | | | | | | 604,814 | | |
| | | | $ | 662,323,906 | | | | | $ | 539,184,374 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | ||||||||||
Deposits | | | | ||||||||||
Non-interest bearing | | | | $ | 116,994,924 | | | | | $ | 106,799,889 | | |
Interest bearing | | | | | 407,236,543 | | | | | | 337,165,005 | | |
Total deposits | | | | | 524,231,467 | | | | | | 443,964,894 | | |
Federal Home Loan Bank advances | | | | | 75,000,000 | | | | | | 39,000,000 | | |
Subordinated notes payable, net | | | | | 9,669,735 | | | | | | 9,613,047 | | |
Accrued interest payable | | | | | 559,962 | | | | | | 227,462 | | |
Other liabilities | | | | | 2,057,930 | | | | | | 3,231,685 | | |
Total liabilities | | | | | 611,519,094 | | | | | | 496,037,088 | | |
Stockholders’ equity | | | | ||||||||||
Common stock, $5 par value, 5,000,000 shares authorized; issued and outstanding 3,411,946 shares in 2018; 3,394,690 shares in 2017 | | | | | 17,059,730 | | | | | | 16,973,450 | | |
Additional paid-in capital | | | | | 18,377,169 | | | | | | 17,497,406 | | |
Retained earnings | | | | | 15,591,404 | | | | | | 8,783,421 | | |
Accumulated other comprehensive loss | | | | | (223,491) | | | | | | (106,991) | | |
Total stockholders’ equity | | | | | 50,804,812 | | | | | | 43,147,286 | | |
| | | | $ | 662,323,906 | | | | | $ | 539,184,374 | | |
| | | 2018 | | | 2017 | | ||||||
Interest income | | | | ||||||||||
Loans, including fees | | | | $ | 26,797,356 | | | | | $ | 20,520,930 | | |
Investment securities | | | | | 663,805 | | | | | | 298,991 | | |
Interest bearing accounts in other financial institutions | | | | | 778,764 | | | | | | 483,326 | | |
| | | | | 28,239,925 | | | | | | 21,303,247 | | |
Interest expense | | | | ||||||||||
Deposits | | | | | 5,473,234 | | | | | | 2,910,313 | | |
Borrowings | | | | | 1,599,823 | | | | | | 1,101,195 | | |
Net interest income | | | | | 7,073,057 | | | | | | 4,011,508 | | |
| | | | | 21,166,868 | | | | | | 17,291,739 | | |
Provision for loan losses | | | | | 1,148,865 | | | | | | 921,261 | | |
Net interest income after provision for loan losses | | | | | 20,018,003 | | | | | | 16,370,478 | | |
Noninterest income | | | | ||||||||||
Service charges on deposit accounts | | | | | 750,342 | | | | | | 614,540 | | |
Gain on sale of loans | | | | | 249,756 | | | | | | 526,573 | | |
Other income | | | | | 256,964 | | | | | | 167,497 | | |
| | | | | 1,257,062 | | | | | | 1,308,610 | | |
Noninterest expense | | | | ||||||||||
Salaries and employee benefits | | | | | 7,319,899 | | | | | | 6,275,276 | | |
Occupancy and equipment | | | | | 1,335,161 | | | | | | 1,110,152 | | |
Telecommunication expense | | | | | 113,352 | | | | | | 96,778 | | |
Data processing | | | | | 544,608 | | | | | | 499,081 | | |
Charitable contributions | | | | | 294,694 | | | | | | 300,702 | | |
Professional fees | | | | | 414,807 | | | | | | 432,147 | | |
Printing and supplies | | | | | 103,899 | | | | | | 79,314 | | |
Regulatory assessments | | | | | 442,271 | | | | | | 239,294 | | |
Directors’ compensation | | | | | 929,759 | | | | | | 737,504 | | |
Marketing | | | | | 193,034 | | | | | | 138,372 | | |
Other | | | | | 634,098 | | | | | | 728,095 | | |
| | | | | 12,325,582 | | | | | | 10,636,715 | | |
Net income before income taxes | | | | | 8,949,483 | | | | | | 7,042,373 | | |
Income tax expense | | | | | 2,141,500 | | | | | | 3,079,529 | | |
Net Income | | | | $ | 6,807,983 | | | | | $ | 3,962,844 | | |
Net income available to common stockholders | | | | $ | 6,807,983 | | | | | $ | 3,962,844 | | |
Earnings per share: | | | | ||||||||||
Basic | | | | $ | 2.00 | | | | | $ | 1.17 | | |
Diluted | | | | $ | 1.91 | | | | | $ | 1.14 | | |
| | | 2018 | | | 2017 | | ||||||
Net income | | | | $ | 6,807,983 | | | | | $ | 3,962,844 | | |
Other comprehensive loss: | | | | ||||||||||
Unrealized losses on securities available for sale: | | | | ||||||||||
Unrealized holding loss arising during the period | | | | | (156,050) | | | | | | (19,344) | | |
Tax effect | | | | | 39,550 | | | | | | 6,644 | | |
Total other comprehensive loss | | | | | (116,500) | | | | | | (12,700) | | |
Comprehensive income | | | | $ | 6,691,483 | | | | | $ | 3,950,144 | | |
| | | Preferred Shares | | | Preferred Stock | | | Common Shares | | | Common Stock | | | Additional Paid in Capital | | | Retained Earnings | | | Accumulated Other Comprehensive Loss | | | Total | | ||||||||||||||||||||||||
Balance at January 1, 2017 | | | | | — | | | | | $ | — | | | | | | 3,376,759 | | | | | $ | 16,883,795 | | | | | $ | 16,991,251 | | | | | $ | 4,802,970 | | | | | $ | (76,684) | | | | | $ | 38,601,332 | | |
Common stock issuance | | | | | — | | | | | | — | | | | | | 17,931 | | | | | | 89,655 | | | | | | 76,151 | | | | | | — | | | | | | — | | | | | | 165,806 | | |
Stock based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 430,004 | | | | | | — | | | | | | — | | | | | | 430,004 | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,962,844 | | | | | | — | | | | | | 3,962,844 | | |
Total other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (12,700) | | | | | | (12,700) | | |
Reclassification due to new tax laws enacted | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 17,607 | | | | | | (17,607) | | | | | | — | | |
Balance at December 31, 2017 | | | | | — | | | | | $ | — | | | | | | 3,394,690 | | | | | $ | 16,973,450 | | | | | $ | 17,497,406 | | | | | $ | 8,783,421 | | | | | $ | (106,991) | | | | | $ | 43,147,286 | | |
Common stock issuance | | | | | — | | | | | | — | | | | | | 17,256 | | | | | | 86,280 | | | | | | 92,764 | | | | | | — | | | | | | — | | | | | | 179,044 | | |
Stock based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 786,999 | | | | | | — | | | | | | — | | | | | | 786,999 | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,807,983 | | | | | | — | | | | | | 6,807,983 | | |
Total other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (116,500) | | | | | | (116,500) | | |
Balance at December 31, 2018 | | | | | — | | | | | $ | — | | | | | | 3,411,946 | | | | | $ | 17,059,730 | | | | | $ | 18,377,169 | | | | | $ | 15,591,404 | | | | | $ | (223,491) | | | | | $ | 50,804,812 | | |
|
| | | 2018 | | | 2017 | | ||||||
Cash flows from operating activities | | | | ||||||||||
Net income | | | | $ | 6,807,983 | | | | | $ | 3,962,844 | | |
Adjustments to reconcile net income to net cash | | | | ||||||||||
From operating activities | | | | ||||||||||
Provision for loan losses | | | | | 1,148,865 | | | | | | 921,261 | | |
Loans originated for sale | | | | | (1,486,000) | | | | | | (1,881,980) | | |
Proceeds from loan sales | | | | | 1,486,000 | | | | | | 4,841,603 | | |
Increase of deferred income tax | | | | | (382,657) | | | | | | (1,983) | | |
Depreciation and amortization | | | | | 294,990 | | | | | | 273,313 | | |
Shared based compensation | | | | | 786,999 | | | | | | 430,004 | | |
Provision for off-balance sheet items | | | | | 85,628 | | | | | | 331,666 | | |
Write-off of property and equipment | | | | | 294 | | | | | | — | | |
Net amortization of premium and discount on securities | | | | | 194,286 | | | | | | 175,476 | | |
Amortization of subordinated note payable discount and debt issuance costs | | | | | 56,688 | | | | | | 60,785 | | |
Net change in: | | | | ||||||||||
Accrued interest receivable and other assets | | | | | (855,514) | | | | | | (621,424) | | |
Accrued interest payable and other liabilities | | | | | (926,883) | | | | | | 1,595,614 | | |
Net cash from operating activities | | | | | 7,210,679 | | | | | | 10,087,179 | | |
Cash flows from investing activities | | | | ||||||||||
Increase in time deposits with financial institutions | | | | | — | | | | | | (3,764) | | |
Redemption of time deposits with financial institutions | | | | | 1,406,983 | | | | | | — | | |
Purchase of securities available for sale | | | | | (19,497,575) | | | | | | (6,161,965) | | |
Purchase of securities held to maturity | | | | | — | | | | | | (199,656) | | |
Proceeds from maturities and calls of securities available for sale | | | | | 1,000,000 | | | | | | 1,000,000 | | |
Proceeds from repayment of securities available for sale | | | | | 2,825,744 | | | | | | 1,626,280 | | |
Proceeds from repayment on securities held to maturity | | | | | 66,473 | | | | | | 78,032 | | |
Proceeds from maturities on securities held to maturity | | | | | — | | | | | | 200,000 | | |
Purchase of Federal Home Loan Bank stock | | | | | (1,625,700) | | | | | | (205,400) | | |
Loan originations and payments, net | | | | | (95,351,408) | | | | | | (98,754,729) | | |
Capital expenditures | | | | | (462,278) | | | | | | (272,501) | | |
Net cash from investing activities | | | | | (111,637,761) | | | | | | (102,693,703) | | |
Cash flows from financing activities | | | | ||||||||||
Net increase in deposits | | | | | 80,266,573 | | | | | | 96,837,683 | | |
Proceeds from Federal Home Loan Bank Advances | | | | | 206,000,000 | | | | | | 37,025,000 | | |
Repayment of Federal Home Loan Bank Advances | | | | | (170,000,000) | | | | | | (34,025,000) | | |
Proceeds from issuance of common stock | | | | | 179,044 | | | | | | 165,806 | | |
Net cash from financing activities | | | | | 116,445,617 | | | | | | 100,003,489 | | |
Net change in cash and cash equivalents | | | | | 12,018,535 | | | | | | 7,396,965 | | |
Beginning cash and cash equivalents | | | | | 54,609,504 | | | | | | 47,212,539 | | |
Ending cash and cash equivalents | | | | $ | 66,628,039 | | | | | $ | 54,609,504 | | |
Supplemental cash flow information: | | | | ||||||||||
Interest paid | | | | | 6,740,557 | | | | | | 3,974,839 | | |
Income taxes paid | | | | | 2,930,000 | | | | | | 2,965,000 | | |
Loans transferred to other real estate | | | | | 1,707,825 | | | | | | — | | |
2018 | | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
Available for Sale | | | | | | ||||||||||||||||||||
U.S. government agencies | | | | $ | 4,181,794 | | | | | $ | — | | | | | $ | (107,668) | | | | | $ | 4,074,126 | | |
U.S. government sponsored entities | | | | | 25,533,218 | | | | | | 35,662 | | | | | | (220,639) | | | | | | 25,348,241 | | |
State, county and municipal bonds | | | | | 1,054,225 | | | | | | — | | | | | | (15,169) | | | | | | 1,039,056 | | |
Corporate bonds | | | | | 1,500,973 | | | | | | 8,450 | | | | | | — | | | | | | 1,509,423 | | |
Total Available for Sale | | | | $ | 32,270,210 | | | | | $ | 44,112 | | | | | $ | (343,476) | | | | | $ | 31,970,846 | | |
|
| | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
Held to Maturity | | | | | | ||||||||||||||||||||
U.S. treasuries | | | | $ | 199,912 | | | | | $ | — | | | | | $ | (1,162) | | | | | $ | 198,750 | | |
U.S. government sponsored entities | | | | | 348,866 | | | | | | 148 | | | | | | (13,795) | | | | | | 335,219 | | |
Foreign Sovereign (Israel) | | | | | 1,000,000 | | | | | | — | | | | | | — | | | | | | 1,000,000 | | |
Total Held to Maturity | | | | $ | 1,548,778 | | | | | $ | 148 | | | | | $ | (14,957) | | | | | $ | 1,533,969 | | |
|
2017 | | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
Available for Sale | | | | | | ||||||||||||||||||||
U.S. government agencies | | | | $ | 5,532,898 | | | | | $ | 709 | | | | | $ | (51,148) | | | | | $ | 5,482,459 | | |
U.S. government sponsored entities | | | | | 8,692,485 | | | | | | — | | | | | | (109,233) | | | | | | 8,583,252 | | |
State, county and municipal bonds | | | | | 1,061,228 | | | | | | 15,505 | | | | | | (7,598) | | | | | | 1,069,135 | | |
Corporate bonds | | | | | 1,501,910 | | | | | | 10,507 | | | | | | (2,056) | | | | | | 1,510,361 | | |
Total Available for Sale | | | | $ | 16,788,521 | | | | | $ | 26,721 | | | | | $ | (170,035) | | | | | $ | 16,645,207 | | |
|
| | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
Held to Maturity | | | | | | ||||||||||||||||||||
U.S. treasuries | | | | $ | 199,737 | | | | | $ | — | | | | | $ | (1,518) | | | | | $ | 198,219 | | |
U.S. government sponsored entities | | | | | 419,658 | | | | | | 233 | | | | | | (8,234) | | | | | | 411,657 | | |
Foreign Sovereign (Israel) | | | | | 1,000,000 | | | | | | — | | | | | | — | | | | | | 1,000,000 | | |
Total Held to Maturity | | | | $ | 1,619,395 | | | | | $ | 233 | | | | | $ | (9,752) | | | | | $ | 1,609,876 | | |
| | | December 31, 2018 | | |||||||||
| | | Amortized Cost | | | Fair Value | | ||||||
Available for Sale | | | | ||||||||||
Within one year | | | | $ | 500,000 | | | | | $ | 500,353 | | |
One to five years | | | | | 16,684,471 | | | | | | 16,627,417 | | |
Over five to ten years | | | | | 9,416,578 | | | | | | 9,315,487 | | |
Over ten years | | | | | 5,669,161 | | | | | | 5,527,589 | | |
Total | | | | $ | 32,270,210 | | | | | $ | 31,970,846 | | |
Held to Maturity | | | | ||||||||||
Within one year | | | | $ | 1,199,912 | | | | | $ | 1,198,750 | | |
One to five years | | | | | 5,538 | | | | | | 5,686 | | |
Over five to ten years | | | | | — | | | | | | — | | |
Over ten years | | | | | 343,328 | | | | | | 329,533 | | |
Total | | | | $ | 1,548,778 | | | | | $ | 1,533,969 | | |
|
| | | December 31, 2017 | | |||||||||
| | | Amortized Cost | | | Fair Value | | ||||||
Available for Sale | | | | ||||||||||
Within one year | | | | $ | 1,000,000 | | | | | $ | 993,567 | | |
One to five years | | | | | 5,501,240 | | | | | | 5,468,477 | | |
Over five to ten years | | | | | 3,973,544 | | | | | | 3,931,590 | | |
Over ten years | | | | | 6,313,737 | | | | | | 6,251,573 | | |
Total | | | | $ | 16,788,521 | | | | | $ | 16,645,207 | | |
Held to Maturity | | | | ||||||||||
Within one year | | | | $ | — | | | | | $ | — | | |
One to five years | | | | | 1,209,237 | | | | | | 1,207,952 | | |
Over five to ten years | | | | | — | | | | | | — | | |
Over ten years | | | | | 410,158 | | | | | | 401,925 | | |
Total | | | | $ | 1,619,395 | | | | | $ | 1,609,876 | | |
| | | Less Than 12 Months | | | 12 Months or Longer | | | Total | | |||||||||||||||||||||||||||
December 31, 2018 | | | Fair Value | | | Unrealized Losses | | | Fair Value | | | Unrealized Losses | | | Fair Value | | | Unrealized Losses | | ||||||||||||||||||
Available for Sale | | | | | | | | ||||||||||||||||||||||||||||||
U.S. Gov. Agencies | | | | $ | 402,429 | | | | | $ | (5,560) | | | | | $ | 3,671,697 | | | | | $ | (102,108) | | | | | $ | 4,074,126 | | | | | $ | (107,668) | | |
U.S. Government sponsored entities | | | | | 5,033,957 | | | | | | (36,305) | | | | | | 8,804,943 | | | | | | (184,334) | | | | | | 13,838,900 | | | | | | (220,639) | | |
State, county and municipal bonds | | | | | 525,225 | | | | | | (718) | | | | | | 513,831 | | | | | | (14,451) | | | | | | 1,039,056 | | | | | | (15,169) | | |
Total Available for Sale | | | | $ | 5,961,611 | | | | | $ | (42,583) | | | | | $ | 12,990,471 | | | | | $ | (300,893) | | | | | $ | 18,952,082 | | | | | $ | (343,476) | | |
|
| | | Less Than 12 Months | | | 12 Months or Longer | | | Total | | |||||||||||||||||||||||||||
December 31, 2018 | | | Fair Value | | | Unrealized Losses | | | Fair Value | | | Unrealized Losses | | | Fair Value | | | Unrealized Losses | | ||||||||||||||||||
Held to Maturity | | | | | | | | ||||||||||||||||||||||||||||||
U.S. Gov. Agencies | | | | $ | — | | | | | $ | — | | | | | $ | 198,750 | | | | | $ | (1,162) | | | | | $ | 198,750 | | | | | $ | (1,162) | | |
U.S. Government sponsored entities | | | | | — | | | | | | — | | | | | | 329,533 | | | | | | (13,795) | | | | | | 329,533 | | | | | | (13,795) | | |
Total Held to Maturity | | | | $ | — | | | | | $ | — | | | | | $ | 528,283 | | | | | $ | (14,957) | | | | | $ | 528,283 | | | | | $ | (14,957) | | |
|
| | | Less Than 12 Months | | | 12 Months or Longer | | | Total | | |||||||||||||||||||||||||||
December 31, 2017 | | | Fair Value | | | Unrealized Losses | | | Fair Value | | | Unrealized Losses | | | Fair Value | | | Unrealized Losses | | ||||||||||||||||||
Available for Sale | | | | | | | | ||||||||||||||||||||||||||||||
U.S. Gov. Agencies | | | | $ | 3,430,696 | | | | | $ | (31,630) | | | | | $ | 1,482,444 | | | | | $ | (19,518) | | | | | $ | 4,913,140 | | | | | $ | (51,148) | | |
U.S. Government sponsored entities | | | | | 5,512,605 | | | | | | (60,445) | | | | | | 3,070,647 | | | | | | (48,788) | | | | | | 8,583,252 | | | | | | (109,233) | | |
State, county and municipal bonds | | | | | 497,943 | | | | | | (7,598) | | | | | | — | | | | | | — | | | | | | 497,943 | | | | | | (7,598) | | |
Corporate securities | | | | | 523,761 | | | | | | (2,056) | | | | | | — | | | | | | — | | | | | | 523,761 | | | | | | (2,056) | | |
Total Available for Sale | | | | $ | 9,965,005 | | | | | $ | (101,729) | | | | | $ | 4,553,091 | | | | | $ | (68,306) | | | | | $ | 14,518,096 | | | | | $ | (170,035) | | |
|
| | | Less Than 12 Months | | | 12 Months or Longer | | | Total | | |||||||||||||||||||||||||||
December 31, 2017 | | | Fair Value | | | Unrecognized Losses | | | Fair Value | | | Unrecognized Losses | | | Fair Value | | | Unrecognized Losses | | ||||||||||||||||||
Held to Maturity | | | | | | | | ||||||||||||||||||||||||||||||
U.S. Gov. Agencies | | | | $ | 198,219 | | | | | $ | (1,518) | | | | | $ | — | | | | | $ | — | | | | | $ | 198,219 | | | | | $ | (1,518) | | |
U.S. Government sponsored entities | | | | | — | | | | | | — | | | | | | 401,925 | | | | | | (8,234) | | | | | | 401,925 | | | | | | (8,234) | | |
Total Held to Maturity | | | | $ | 198,219 | | | | | $ | (1,518) | | | | | $ | 401,925 | | | | | $ | (8,234) | | | | | $ | 600,144 | | | | | $ | (9,752) | | |
| | | 2018 | | | 2017 | | ||||||
Commercial | | | | $ | 80,171,846 | | | | | $ | 61,661,118 | | |
Real Estate: | | | | ||||||||||
Residential | | | | | 3,769,129 | | | | | | 5,772,633 | | |
Commercial | | | | | 403,444,475 | | | | | | 327,306,009 | | |
Home equity lines of credit (HELOC) | | | | | 65,798,734 | | | | | | 66,233,804 | | |
Consumer and other | | | | | 3,408,497 | | | | | | 2,209,565 | | |
| | | | | 556,592,681 | | | | | | 463,183,129 | | |
Less: Fees and Costs | | | | | (366,159) | | | | | | (115,179) | | |
Less: Allowance for loan losses | | | | | (4,862,807) | | | | | | (4,198,952) | | |
Loans, net | | | | $ | 551,363,715 | | | | | $ | 458,868,998 | | |
December 31, 2018 | | | Commercial | | | Real Estate | | | Consumer & Other | | | Total | | ||||||||||||||||||||||||
| Residential | | | Commercial | | | HELOC | | |||||||||||||||||||||||||||||
Allowance for loan losses: | | | | | | | | ||||||||||||||||||||||||||||||
Beginning balance | | | | $ | 567,669 | | | | | $ | 22,733 | | | | | $ | 2,994,235 | | | | | $ | 577,204 | | | | | $ | 37,111 | | | | | $ | 4,198,952 | | |
Provision for loan losses | | | | | 278,816 | | | | | | 3,651 | | | | | ��� | 303,785 | | | | | | 574,335 | | | | | | (11,722) | | | | | | 1,148,865 | | |
Loans charged-off | | | | | — | | | | | | — | | | | | | — | | | | | | (491,208) | | | | | | — | | | | | | (491,208) | | |
Recoveries | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,198 | | | | | | 6,198 | | |
Total ending balance | | | | $ | 846,485 | | | | | $ | 26,384 | | | | | $ | 3,298,020 | | | | | $ | 660,331 | | | | | $ | 31,587 | | | | | $ | 4,862,807 | | |
December 31, 2017 | | | Commercial | | | Real Estate | | | Consumer & Other | | | Total | | ||||||||||||||||||||||||
| Residential | | | Commercial | | | HELOC | | |||||||||||||||||||||||||||||
Allowance for loan losses: | | | | | | | | ||||||||||||||||||||||||||||||
Beginning balance | | | | $ | 505,828 | | | | | $ | 76,277 | | | | | $ | 2,439,450 | | | | | $ | 576,082 | | | | | $ | 27,731 | | | | | $ | 3,625,368 | | |
Provision for loan losses | | | | | 372,140 | | | | | | (53,544) | | | | | | 554,785 | | | | | | 1,122 | | | | | | 46,758 | | | | | | 921,261 | | |
Loans charged-off | | | | | (310,299) | | | | | | — | | | | | | — | | | | | | — | | | | | | (40,611) | | | | | | (350,910) | | |
Recoveries | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,233 | | | | | | 3,233 | | |
Total ending balance | | | | $ | 567,669 | | | | | $ | 22,733 | | | | | $ | 2,994,235 | | | | | $ | 577,204 | | | | | $ | 37,111 | | | | | $ | 4,198,952 | | |
December 31, 2018 | | | Commercial | | | Real Estate | | | Consumer & Other | | | Total | | ||||||||||||||||||||||||
| Residential | | | Commercial | | | HELOC | | |||||||||||||||||||||||||||||
Allowance for loan losses: | | | | | | | | ||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | | | | | | | | ||||||||||||||||||||||||||||||
Individually evaluated for impairment | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 69,134 | | | | | $ | — | | | | | $ | 69,134 | | |
Collectively evaluated for impairment | | | | | 846,485 | | | | | | 26,384 | | | | | | 3,298,020 | | | | | | 591,197 | | | | | | 31,587 | | | | | | 4,793,673 | | |
Total ending balance | | | | $ | 846,485 | | | | | $ | 26,384 | | | | | $ | 3,298,020 | | | | | $ | 660,331 | | | | | $ | 31,587 | | | | | $ | 4,862,807 | | |
Loans: | | | | | | | | ||||||||||||||||||||||||||||||
Loans individually evaluated for impairment | | | | $ | 294,245 | | | | | $ | — | | | | | $ | — | | | | | $ | 110,199 | | | | | $ | — | | | | | $ | 404,444 | | |
Loans collectively evaluated for impairment | | | | | 79,877,601 | | | | | | 3,769,129 | | | | | | 403,444,475 | | | | | | 65,688,535 | | | | | | 3,408,497 | | | | | | 556,188,237 | | |
Total ending loans balance | | | | $ | 80,171,846 | | | | | $ | 3,769,129 | | | | | $ | 403,444,475 | | | | | $ | 65,798,734 | | | | | $ | 3,408,497 | | | | | $ | 556,592,681 | | |
December 31, 2017 | | | Commercial | | | Real Estate | | | Consumer & Other | | | Total | | ||||||||||||||||||||||||
| Residential | | | Commercial | | | HELOC | | |||||||||||||||||||||||||||||
Allowance for loan losses: | | | | | | | | ||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | | | | | | | | ||||||||||||||||||||||||||||||
Individually evaluated for impairment | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Collectively evaluated for impairment | | | | | 567,669 | | | | | | 22,733 | | | | | | 2,994,235 | | | | | | 577,204 | | | | | | 37,111 | | | | | | 4,198,952 | | |
Total ending balance | | | | $ | 567,669 | | | | | $ | 22,733 | | | | | $ | 2,994,235 | | | | | $ | 577,204 | | | | | $ | 37,111 | | | | | $ | 4,198,952 | | |
Loans: | | | | | | | | ||||||||||||||||||||||||||||||
Loans individually evaluated for impairment | | | | $ | 305,544 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,100,000 | | | | | $ | — | | | | | $ | 2,405,544 | | |
Loans collectively evaluated for impairment | | | | | 61,355,574 | | | | | | 5,772,633 | | | | | | 327,306,009 | | | | | | 64,133,804 | | | | | | 2,209,565 | | | | | | 460,777,585 | | |
Total ending loans balance | | | | $ | 61,661,118 | | | | | $ | 5,772,633 | | | | | $ | 327,306,009 | | | | | $ | 66,233,804 | | | | | $ | 2,209,565 | | | | | $ | 463,183,129 | | |
| | | 2018 | | | 2017 | | ||||||
Average of individually impaired loans during year | | | | $ | 404,444 | | | | | $ | 2,405,544 | | |
Interest income recognized during impairment | | | | | 61,015 | | | | | | 104,073 | | |
Cash-basis interest income recognized | | | | | — | | | | | | — | | |
2018 | | | Pass | | | Special Mention | | | Substandard | | | Doubtful | | | Total | | |||||||||||||||
Commercial | | | | $ | 79,877,601 | | | | | $ | — | | | | | $ | 294,245 | | | | | $ | — | | | | | $ | 80,171,846 | | |
Real Estate: | | | | | | | |||||||||||||||||||||||||
Residential | | | | | 3,769,129 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,769,129 | | |
Commercial | | | | | 403,444,475 | | | | | | — | | | | | | — | | | | | | — | | | | | | 403,444,475 | | |
Home Equity Line of Credit | | | | | 65,688,535 | | | | | | — | | | | | | 110,199 | | | | | | — | | | | | | 65,798,734 | | |
Consumer and other | | | | | 3,408,497 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,408,497 | | |
Total | | | | $ | 556,188,237 | | | | | $ | — | | | | | $ | 404,444 | | | | | $ | — | | | | | $ | 556,592,681 | | |
|
2017 | | | Pass | | | Special Mention | | | Substandard | | | Doubtful | | | Total | | |||||||||||||||
Commercial | | | | $ | 61,355,574 | | | | | $ | — | | | | | $ | 305,544 | | | | | $ | — | | | | | $ | 61,661,118 | | |
Real Estate: | | | | | | | |||||||||||||||||||||||||
Residential | | | | | 5,772,633 | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,772,633 | | |
Commercial | | | | | 327,306,009 | | | | | | — | | | | | | — | | | | | | — | | | | | | 327,306,009 | | |
Home Equity Line of Credit | | | | | 64,133,804 | | | | | | — | | | | | | 2,100,000 | | | | | | — | | | | | | 66,233,804 | | |
Consumer and other | | | | | 2,209,565 | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,209,565 | | |
Total | | | | $ | 460,777,585 | | | | | $ | — | | | | | $ | 2,405,544 | | | | | $ | — | | | | | $ | 463,183,129 | | |
| | | 2018 | | | 2017 | | ||||||
Leasehold improvements | | | | $ | 1,110,252 | | | | | $ | 859,859 | | |
Furniture and equipment | | | | | 1,374,803 | | | | | | 1,172,998 | | |
| | | | | 2,485,055 | | | | | | 2,032,857 | | |
Less: Accumulated depreciation | | | | | (1,436,198) | | | | | | (1,150,994) | | |
| | | | $ | 1,048,857 | | | | | $ | 881,863 | | |
| 2019 | | | | | 699,323 | | |
| 2020 | | | | | 699,851 | | |
| 2021 | | | | | 677,658 | | |
| 2022 | | | | | 340,683 | | |
| 2023 | | | | | 100,887 | | |
| Thereafter | | | | | — | | |
| | | | | $ | 2,518,402 | | |
| 2019 | | | | | 266,916,257 | | |
| 2020 | | | | | 13,834,430 | | |
| 2021 | | | | | 500,038 | | |
| 2022 | | | | | 1,069,884 | | |
| 2023 | | | | | — | | |
| | | | | $ | 282,320,609 | | |
| 2018 | | |||
| Amount | | | Rate | |
| $75,000,000 | | | 2.35% to 2.82% | |
| 2017 | | |||
| Amount | | | Rate | |
| $39,000,000 | | | 0.88% to 1.79% | |
| | | 2018 | | | 2017 | | ||||||
Basic | | | | | | | | | | | | | |
Net Income | | | | $ | 6,807,983 | | | | | $ | 3,962,844 | | |
Weighted average common shares outstanding | | | | | 3,407,680 | | | | | | 3,390,525 | | |
Basic earnings per common share | | | | $ | 2.00 | | | | | $ | 1.17 | | |
| | | 2018 | | | 2017 | | ||||||
Diluted | | | | | | | | | | | | | |
Net Income | | | | $ | 6,807,983 | | | | | $ | 3,962,844 | | |
Weighted average common shares outstanding for basic earnings per common share | | | | | 3,407,680 | | | | | | 3,390,525 | | |
Add: Dilutive effects of assumed exercises of stock options | | | | | 155,001 | | | | | | 72,062 | | |
Average shares | | | | | 3,562,681 | | | | | | 3,462,587 | | |
Diluted | | | | $ | 1.91 | | | | | $ | 1.14 | | |
| | | 2017 | | |||
Retained Earnings | | | | $ | 17,607 | | |
Accumulated Other Comprehensive Loss | | | | $ | (17,607) | | |
| | | 2018 | | | 2017 | | ||||||
Current | | | | $ | 2,524,157 | | | | | $ | 3,081,512 | | |
Deferred | | | | | (382,657) | | | | | | (1,983) | | |
Total | | | | $ | 2,141,500 | | | | | $ | 3,079,529 | | |
| | | 2018 | �� | | 2017 | | ||||||
Deferred tax assets | | | | ||||||||||
Organizational and start-up expenses | | | | $ | 41,980 | | | | | $ | 53,695 | | |
Capital losses | | | | | 25,345 | | | | | | 25,345 | | |
Stock option expense | | | | | 341,731 | | | | | | 199,916 | | |
Allowance for loan losses | | | | | 1,232,478 | | | | | | 1,034,485 | | |
Securities available for sale | | | | | 75,874 | | | | | | 36,323 | | |
Accrued expenses | | | | | 247,812 | | | | | | 176,434 | | |
Other | | | | | 414 | | | | | | — | | |
| | | | | 1,965,634 | | | | | | 1,526,198 | | |
Deferred tax liabilities | | | | ||||||||||
Accumulated depreciation | | | | | 65,721 | | | | | | 65,250 | | |
Deferred loan fees | | | | | 265,557 | | | | | | 289,191 | | |
Other | | | | | 42,079 | | | | | | 1,688 | | |
| | | | | 373,357 | | | | | | 356,129 | | |
Valuation allowance | | | | | 25,345 | | | | | | 25,345 | | |
Net deferred tax asset | | | | $ | 1,566,932 | | | | | $ | 1,144,724 | | |
| | | 2018 | | | 2017 | | ||||||
Federal statutory rate times financial statement income | | | | $ | 1,879,391 | | | | | $ | 2,394,407 | | |
Effect of state income tax (net of federal benefit) | | | | | 192,935 | | | | | | 92,159 | | |
Stock compensation | | | | | 47,749 | | | | | | 81,047 | | |
Other | | | | | 21,425 | | | | | | (40,199) | | |
Effect of tax rate change | | | | | — | | | | | | 552,115 | | |
| | | | $ | 2,141,500 | | | | | $ | 2,213,569 | | |
| | | 2018 | | | 2017 | | ||||||||||||||||||
| | | Principal | | | Unamortized Discount and Debt Issuance Costs | | | Principal | | | Unamortized Discount and Debt Issuance Costs | | ||||||||||||
7.0% subordinated debentures, due 2026 (discount is based on imputed interest rate of 7.458%) | | | | $ | 10,000,000 | | | | | $ | (330,265) | | | | | $ | 10,000,000 | | | | | $ | (386,953) | | |
Total | | | | $ | 10,000,000 | | | | | $ | (330,265) | | | | | $ | 10,000,000 | | | | | $ | (386,953) | | |
| | | 2018 | | | 2017 | |
Risk-free interest rate | | | 2.59% – 2.78% | | | 2.07% – 2.26% | |
Expected life | | | 6 years | | | 6 years | |
Expected volatility | | | 30% | | | 30% | |
Dividend yield | | | 0% | | | 0% | |
| | | Shares | | | Weighted Average Exercise Price | | | Weighted Average Remaining Contractual Term | | ||||||
Outstanding January 1, 2018 | | | | | 638,602 | | | | | $ | 10.17 | | | | 6 years | |
Granted | | | | | 357,332 | | | | | | 14.85 | | | | ||
Exercised | | | | | (17,256) | | | | | | 10.38 | | | | ||
Forfeited/Expired | | | | | (2,550) | | | | | | 9.65 | | | | ||
Outstanding December 31, 2018 | | | | | 976,128 | | | | | $ | 11.88 | | | | 6.6 years | |
Options vested and exercisable at end of year | | | | | 502,439 | | | | | $ | 9.60 | | | | 4.4 years | |
Options not vested | | | | | 473,689 | | | | | $ | 14.31 | | | | 8.9 years | |
| | Shares | | Weighted Average Exercise Price | | Weighted Average Remaining Contractual Term | | | Shares | | Weighted Average Exercise Price | | Weighted Average Remaining Contractual Term | | ||||||||||||||||||
Outstanding January 1, 2017 | ��� | | | | 534,433 | | | | $ | 9.49 | | | 6.2 years | | | | | 534,433 | | | | $ | 9.49 | | | 6.2 years | | |||||
Granted | | | | 123,000 | | | | | 13.00 | | | | | | | 123,000 | | | | | 13.00 | | | | ||||||||
Exercised | | | | (17,931) | | | | | 9.25 | | | | | | | (17,931) | | | | | 9.25 | | | | ||||||||
Forfeited/Expired | | | | (900) | | | | | 11.66 | | | | | | | (900) | | | | | 11.66 | | | | ||||||||
Outstanding December 31, 2017 | | | | 638,602 | | | | $ | 10.17 | | | 6 years | | | | | 638,602 | | | | $ | 10.17 | | | 6 years | | ||||||
Options vested and exercisable at end of year | | | | 414,455 | | | | $ | 8.96 | | | 4.7 years | | | | | 414,455 | | | | $ | 8.96 | | | 4.7 years | | ||||||
Options not vested | | | | 224,147 | | | | $ | 12.41 | | | 8.5 years | | | | | 224,147 | | | | $ | 12.41 | | | 8.5 years | |
| | | Actual | | | Minimum Required To Be Adequately Capitalized Plus Conservation Buffer | | | Minimum Required To Be Well Capitalized | | |||||||||||||||||||||||||||
2018 | | | Amount | | | Ratio | | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||||||||
Total Capital to risk weighted assets | | | | | | | | ||||||||||||||||||||||||||||||
Consolidated | | | | $ | 65,980,388 | | | | | | 11.53% | | | | | $ | 56,495,776 | | | | | | 9.875% | | | | | | N/A | | | | | | N/A | | |
Bank | | | | $ | 65,167,154 | | | | | | 11.39% | | | | | $ | 56,494,381 | | | | | | 9.875% | | | | | $ | 57,209,500 | | | | | | 10.00% | | |
Tier 1 (Core) Capital to risk weighted assets | | | | | | | | ||||||||||||||||||||||||||||||
Consolidated | | | | $ | 51,028,303 | | | | | | 8.92% | | | | | $ | 45,053,594 | | | | | | 7.875% | | | | | | N/A | | | | | | N/A | | |
Bank | | | | $ | 59,884,803 | | | | | | 10.47% | | | | | $ | 45,052,481 | | | | | | 7.875% | | | | | $ | 45,767,600 | | | | | | 8.00% | | |
| | | Actual | | | Minimum Required To Be Adequately Capitalized Plus Conservation Buffer | | | Minimum Required To Be Well Capitalized | | |||||||||||||||||||||||||||
2018 | | | Amount | | | Ratio | | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||||||||
Common Tier 1 (CET 1) | | | | | | | | ||||||||||||||||||||||||||||||
Consolidated | | | | $ | 51,028,303 | | | | | | 8.92% | | | | | $ | 36,471,957 | | | | | | 6.375% | | | | | | N/A | | | | | | N/A | | |
Bank | | | | $ | 59,884,803 | | | | | | 10.47% | | | | | $ | 36,471,056 | | | | | | 6.375% | | | | | $ | 37,186,175 | | | | | | 6.50% | | |
Tier 1 (Core) Capital to average assets | | | | | | | | ||||||||||||||||||||||||||||||
Consolidated | | | | $ | 51,028,303 | | | | | | 8.08% | | | | | $ | 25,249,033 | | | | | | 4.000% | | | | | | N/A | | | | | | N/A | | |
Bank | | | | $ | 59,884,803 | | | | | | 9.49% | | | | | $ | 25,251,000 | | | | | | 4.000% | | | | | $ | 28,604,750 | | | | | | 5.00% | | |
| | | Actual | | | Minimum Required To Be Adequately Capitalized Plus Conservation Buffer | | | Minimum Required To Be Well Capitalized | | |||||||||||||||||||||||||||
2017 | | | Amount | | | Ratio | | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||||||||
Total Capital to risk weighted assets | | | | | | | | ||||||||||||||||||||||||||||||
Consolidated | | | | $ | 57,400,192 | | | | | | 12.21% | | | | | $ | 43,497,940 | | | | | | 9.25% | | | | | | N/A | | | | | | N/A | | |
Bank | | | | $ | 55,527,832 | | | | | | 11.81% | | | | | $ | 43,497,940 | | | | | | 9.25% | | | | | $ | 47,024,800 | | | | | | 10.00% | | |
Tier 1 (Core) Capital to risk weighted assets | | | | | | | | ||||||||||||||||||||||||||||||
Consolidated | | | | $ | 43,236,671 | | | | | | 9.19% | | | | | $ | 34,092,980 | | | | | | 7.25% | | | | | | N/A | | | | | | N/A | | |
Bank | | | | $ | 50,994,964 | | | | | | 10.84% | | | | | $ | 34,092,980 | | | | | | 7.25% | | | | | $ | 37,619,840 | | | | | | 8.00% | | |
Common Tier 1 (CET 1) | | | | | | | | ||||||||||||||||||||||||||||||
Consolidated | | | | $ | 43,236,671 | | | | | | 9.19% | | | | | $ | 27,039,260 | | | | | | 5.75% | | | | | | N/A | | | | | | N/A | | |
Bank | | | | $ | 50,994,964 | | | | | | 10.84% | | | | | $ | 27,039,260 | | | | | | 5.75% | | | | | $ | 30,566,120 | | | | | | 6.50% | | |
Tier 1 (Core) Capital to average assets | | | | | | | | ||||||||||||||||||||||||||||||
Consolidated | | | | $ | 43,236,671 | | | | | | 8.24% | | | | | $ | 20,983,080 | | | | | | 4.00% | | | | | | N/A | | | | | | N/A | | |
Bank | | | | $ | 50,994,964 | | | | | | 9.72% | | | | | $ | 20,983,080 | | | | | | 4.00% | | | | | $ | 23,512,400 | | | | | | 5.00% | | |
| | | 2018 | | | 2017 | | ||||||
Commitments to extend credit | | | | $ | 146,343,914 | | | | | $ | 150,836,945 | | |
Stand-by letters of credit | | | | | 1,501,541 | | | | | | 620,918 | | |
Commercial letters of credit | | | | | — | | | | | | 1,946,887 | | |
| | | | | | | | | Fair Value Measurements at December 31 using: | | |||||||||||||||
| | | Fair Value | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | ||||||||||||
2018 | | | | | | ||||||||||||||||||||
Assets | | | | | | ||||||||||||||||||||
U.S. government agencies | | | | $ | 4,074,126 | | | | | $ | — | | | | | $ | 4,074,126 | | | | | $ | — | | |
U.S. government sponsored entities | | | | | 25,348,241 | | | | | | — | | | | | | 25,348,241 | | | | | | — | | |
State, County and Municipal bonds | | | | | 1,039,056 | | | | | | — | | | | | | 1,039,056 | | | | | | — | | |
Corporate Bonds | | | | | 1,509,423 | | | | | | — | | | | | | 1,509,423 | | | | | | — | | |
Total securities available for sale | | | | $ | 31,970,846 | | | | | $ | — | | | | | $ | 31,970,846 | | | | | $ | — | | |
2017 | | | | | | ||||||||||||||||||||
Assets | | | | | | ||||||||||||||||||||
U.S. government agencies | | | | $ | 5,482,459 | | | | | $ | — | | | | | $ | 5,482,459 | | | | | $ | — | | |
U.S. government sponsored entities | | | | | 8,583,252 | | | | | | — | | | | | | 8,583,252 | | | | | | — | | |
State, County and Municipal bonds | | | | | 1,069,135 | | | | | | — | | | | | | 1,069,135 | | | | | | — | | |
Corporate Bonds | | | | | 1,510,361 | | | | | | — | | | | | | 1,510,361 | | | | | | — | | |
Total securities available for sale | | | | $ | 16,645,207 | | | | | $ | — | | | | | $ | 16,645,207 | | | | | $ | — | | |
|
| | | | | | | | | Fair Value Measurements at December 31 using: | | |||||||||||||||
| | | Fair Value | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | ||||||||||||
2018 | | | | | | ||||||||||||||||||||
Impaired Loan (Home Equity) | | | | $ | 110,199 | | | | | $ | — | | | | | $ | — | | | | | $ | 110,199 | | |
Impaired Loan (Commercial Line) | | | | | 294,245 | | | | | | — | | | | | | — | | | | | | 294,245 | | |
Other Real Estate Owned (Residential) | | | | | 1,707,825 | | | | | | — | | | | | | 1,707,825 | | | | | | — | | |
2017 | | | | | | ||||||||||||||||||||
Impaired Loan (Home Equity) | | | | $ | 2,100,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,100,000 | | |
Impaired Loan (Commercial Line) | | | | | 305,544 | | | | | | — | | | | | | — | | | | | | 305,544 | | |
| SEC registration fee | | | $ | 9,735 | | | SEC registration fee | | | $ | 9,735 | | | ||
| FINRA filing fee | | | | * | | | FINRA filing fee | | | | 11,750 | | | ||
| Nasdaq listing fees and expenses | | | | * | | | Nasdaq listing fees and expenses | | | | 150,000 | | | ||
| Accounting fees and expenses | | | | * | | | Accounting fees and expenses | | | | 660,000 | | | ||
| Legal fees and expenses | | | | * | | | Legal fees and expenses | | | | 525,000 | | | ||
| Printing fees and expenses | | | | * | | | Printing fees and expenses | | | | 150,000 | | | ||
| Transfer agent and registrar fees and expenses | | | | * | | | Transfer agent and registrar fees and expenses | | | | 12,000 | | | ||
| Blue sky fees and expenses | | | | * | | | Underwriter expenses | | | | 50,000 | | | ||
| Miscellaneous expenses | | | | * | | | Miscellaneous expenses | | | | 100,000 | | | ||
| Total | | | $ | * | | | Total | | | $ | 1,668,485 | | |
| Signature | | | Title | | | Date | |
| /s/ Daniel R. Sheehan Daniel R. Sheehan | | | Chairman and Chief Executive Officer (Principal Executive Officer) | | | January | |
| /s/ Mary Usategui Mary Usategui | | | Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | | | January | |
| Rolando DiGasbarro | | | Director | | | January | |
| Carlos M. Garcia | | | Director | | | January | |
| Jon L. Gorney | | | Director | | | January | |
| Abel L. Iglesias | | | Director | | | January | |
| Herbert Martens, Jr. | | | Director | | | January |
| ||||||||
| Dr. Lawrence Schimmel, M.D. | | | Director | | | January | |
| Anton V. Schutz | | | Director | | | January | |
| *By: /s/ Daniel R. Sheehan Attorney-in-Fact | | | | | |