[x]
2023
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Large accelerated filer |
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2023
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2
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·loans that we sell, as well as competition for the mortgage servicing rights related to these
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·inflation, interest rate, marketeffect of corporate restructuring, acquisitions or dispositions, including the actual restructuring and monetary fluctuations;
·other related charges and the failure
·(including hurricanes), widespread health emergencies (including pandemics, such
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·changes in accounting principles, policies, practices or guidelines;
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3
PART I. FINANCIAL INFORMATION | |||||||
Item 1. | |||||||
|
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|
CAPITAL CITY BANK GROUP, INC. | |||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||
|
|
|
|
|
|
|
|
|
|
| (Unaudited) |
|
|
| |
|
|
| September 30, |
| December 31, | ||
(Dollars in Thousands) | 2017 |
| 2016 | ||||
ASSETS |
|
|
|
|
| ||
Cash and Due From Banks | $ | 50,420 |
| $ | 48,268 | ||
Federal Funds Sold and Interest Bearing Deposits |
| 140,694 |
|
| 247,779 | ||
|
| Total Cash and Cash Equivalents |
| 191,114 |
|
| 296,047 |
|
|
|
|
|
|
|
|
Investment Securities, Available for Sale, at fair value |
| 510,846 |
|
| 522,734 | ||
Investment Securities, Held to Maturity, at amortized cost (fair value of $183,523 and $176,746) |
| 184,262 |
|
| 177,365 | ||
|
| Total Investment Securities |
| 695,108 |
|
| 700,099 |
|
|
|
|
|
|
|
|
Loans Held For Sale |
| 7,800 |
|
| 10,886 | ||
|
|
|
|
|
|
|
|
Loans, Net of Unearned Income |
| 1,630,338 |
|
| 1,561,289 | ||
| Allowance for Loan Losses |
| (13,339) |
|
| (13,431) | |
|
| Loans, Net |
| 1,616,999 |
|
| 1,547,858 |
|
|
|
|
|
|
|
|
Premises and Equipment, net |
| 92,345 |
|
| 95,476 | ||
Goodwill |
| 84,811 |
|
| 84,811 | ||
Other Real Estate Owned |
| 5,987 |
|
| 10,638 | ||
Other Assets |
| 96,678 |
|
| 99,382 | ||
|
| Total Assets | $ | 2,790,842 |
| $ | 2,845,197 |
|
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|
|
|
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|
|
LIABILITIES |
|
|
|
|
| ||
Deposits: |
|
|
|
|
| ||
| Noninterest Bearing Deposits | $ | 870,644 |
| $ | 791,182 | |
| Interest Bearing Deposits |
| 1,476,973 |
|
| 1,621,104 | |
|
| Total Deposits |
| 2,347,617 |
|
| 2,412,286 |
|
|
|
|
|
|
|
|
Short-Term Borrowings |
| 6,777 |
|
| 12,749 | ||
Subordinated Notes Payable |
| 52,887 |
|
| 52,887 | ||
Other Long-Term Borrowings |
| 15,047 |
|
| 14,881 | ||
Other Liabilities |
| 83,313 |
|
| 77,226 | ||
|
| Total Liabilities |
| 2,505,641 |
|
| 2,570,029 |
|
|
|
|
|
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|
|
SHAREOWNERS’ EQUITY |
|
|
|
|
| ||
Preferred Stock, $.01 par value; 3,000,000 shares authorized; no shares issued and outstanding |
| - |
|
| - | ||
Common Stock, $.01 par value; 90,000,000 shares authorized; 16,966,047 and 16,844,698 shares |
|
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| |||
issued and outstanding at September 30, 2017 and December 31, 2016, respectively |
| 170 |
|
| 168 | ||
Additional Paid-In Capital |
| 35,892 |
|
| 34,188 | ||
Retained Earnings |
| 275,013 |
|
| 267,037 | ||
Accumulated Other Comprehensive Loss, net of tax |
| (25,874) |
|
| (26,225) | ||
Total Shareowners’ Equity |
| 285,201 |
|
| 275,168 | ||
Total Liabilities and Shareowners' Equity | $ | 2,790,842 |
| $ | 2,845,197 | ||
|
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The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. |
4
CAPITAL CITY BANK GROUP, INC. | ||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
(Unaudited) | ||||||||||||
|
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|
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|
|
|
|
| Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||||||
(Dollars in Thousands, Except Per Share Data) | 2017 |
| 2016 |
| 2017 |
| 2016 | |||||
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
| |
Loans, including Fees | $ | 19,479 |
| $ | 18,046 |
| $ | 56,204 |
| $ | 54,196 | |
Investment Securities: |
|
|
|
|
|
|
|
|
|
|
| |
| Taxable |
| 2,150 |
|
| 1,633 |
|
| 5,832 |
|
| 4,591 |
| Tax Exempt |
| 266 |
|
| 213 |
|
| 795 |
|
| 643 |
Federal Funds Sold and Interest Bearing Deposits |
| 446 |
|
| 212 |
|
| 1,472 |
|
| 892 | |
Total Interest Income |
| 22,341 |
|
| 20,104 |
|
| 64,303 |
|
| 60,322 | |
|
|
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|
|
|
|
|
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
| |
Deposits |
| 530 |
|
| 223 |
|
| 1,199 |
|
| 655 | |
Short-Term Borrowings |
| 15 |
|
| 43 |
|
| 77 |
|
| 91 | |
Subordinated Notes Payable |
| 420 |
|
| 341 |
|
| 1,203 |
|
| 1,071 | |
Other Long-Term Borrowings |
| 115 |
|
| 177 |
|
| 331 |
|
| 599 | |
Total Interest Expense |
| 1,080 |
|
| 784 |
|
| 2,810 |
|
| 2,416 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME |
| 21,261 |
|
| 19,320 |
|
| 61,493 |
|
| 57,906 | |
Provision for Loan Losses |
| 490 |
|
| - |
|
| 1,389 |
|
| 355 | |
Net Interest Income After Provision For Loan Losses |
| 20,771 |
|
| 19,320 |
|
| 60,104 |
|
| 57,551 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
| |
Deposit Fees |
| 5,153 |
|
| 5,373 |
|
| 15,295 |
|
| 16,094 | |
Bank Card Fees |
| 2,688 |
|
| 2,759 |
|
| 8,361 |
|
| 8,467 | |
Wealth Management Fees |
| 2,197 |
|
| 1,774 |
|
| 6,112 |
|
| 5,256 | |
Mortgage Banking Fees |
| 1,480 |
|
| 1,503 |
|
| 4,344 |
|
| 3,800 | |
Other |
| 1,478 |
|
| 1,602 |
|
| 4,737 |
|
| 7,286 | |
Total Noninterest Income |
| 12,996 |
|
| 13,011 |
|
| 38,849 |
|
| 40,903 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
| |
Compensation |
| 16,349 |
|
| 15,993 |
|
| 49,137 |
|
| 48,285 | |
Occupancy, net |
| 4,501 |
|
| 4,734 |
|
| 13,437 |
|
| 13,777 | |
Other Real Estate Owned, net |
| (118) |
|
| 821 |
|
| 780 |
|
| 3,306 | |
Other |
| 5,975 |
|
| 6,474 |
|
| 19,196 |
|
| 20,286 | |
Total Noninterest Expense |
| 26,707 |
|
| 28,022 |
|
| 82,550 |
|
| 85,654 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES |
| 7,060 |
|
| 4,309 |
|
| 16,403 |
|
| 12,800 | |
Income Tax Expense |
| 2,505 |
|
| 1,436 |
|
| 5,543 |
|
| 4,350 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME | $ | 4,555 |
| $ | 2,873 |
| $ | 10,860 |
| $ | 8,450 | |
|
|
|
|
|
|
|
|
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BASIC NET INCOME PER SHARE | $ | 0.27 |
| $ | 0.18 |
| $ | 0.64 |
| $ | 0.50 | |
DILUTED NET INCOME PER SHARE | $ | 0.27 |
| $ | 0.17 |
| $ | 0.64 |
| $ | 0.49 | |
|
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|
|
Average Common Basic Shares Outstanding |
| 16,965 |
|
| 16,804 |
|
| 16,946 |
|
| 17,049 | |
Average Common Diluted Shares Outstanding |
| 17,044 |
|
| 16,871 |
|
| 17,009 |
|
| 17,100 | |
|
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|
|
|
|
|
|
|
|
|
|
|
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. |
5
CAPITAL CITY BANK GROUP, INC. | |||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||
(Unaudited) | |||||||||||
|
|
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|
| Three Months Ended |
| Nine Months Ended | ||||||||
| September 30, |
| September 30, | ||||||||
(Dollars in Thousands) | 2017 |
| 2016 |
| 2017 |
| 2016 | ||||
NET INCOME | $ | 4,555 |
| $ | 2,873 |
| $ | 10,860 |
| $ | 8,450 |
Other comprehensive income, before tax: |
|
|
|
|
|
|
|
|
|
|
|
Change in net unrealized gain/loss on securities available for sale |
| (99) |
|
| (1,158) |
|
| 516 |
|
| 1,535 |
Amortization of unrealized losses on securities transferred from |
|
|
|
|
|
|
|
|
|
|
|
available for sale to held to maturity |
| 19 |
|
| 21 |
|
| 57 |
|
| 60 |
Total Investment Securities |
| (80) |
|
| (1,137) |
|
| 573 |
|
| 1,595 |
Other comprehensive (loss) income, before tax |
| (80) |
|
| (1,137) |
|
| 573 |
|
| 1,595 |
Deferred tax (benefit) expense related to other comprehensive income |
| (31) |
|
| (439) |
|
| 222 |
|
| 615 |
Other comprehensive (loss) income, net of tax |
| (49) |
|
| (698) |
|
| 351 |
|
| 980 |
TOTAL COMPREHENSIVE INCOME | $ | 4,506 |
| $ | 2,175 |
| $ | 11,211 |
| $ | 9,430 |
|
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|
|
|
|
|
|
|
|
|
|
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. |
6
CAPITAL CITY BANK GROUP, INC. | ||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREOWNERS' EQUITY | ||||||||||||||||
(Unaudited) | ||||||||||||||||
|
|
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| Accumulated |
|
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| |
|
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| Other |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Comprehensive |
|
|
| |
| Shares |
| Common |
| Additional |
| Retained |
| Loss, Net of |
|
|
| ||||
(Dollars In Thousands, Except Share Data) | Outstanding |
| Stock |
| Paid-In Capital |
| Earnings |
| Taxes |
| Total | |||||
Balance, January 1, 2016 | 17,156,919 |
| $ | 172 |
| $ | 38,256 |
| $ | 258,181 |
| $ | (22,257) |
| $ | 274,352 |
Net Income | - |
|
| - |
|
| - |
|
| 8,450 |
|
| - |
|
| 8,450 |
Other Comprehensive Income, net of tax | - |
|
| - |
|
| - |
|
| - |
|
| 980 |
|
| 980 |
Cash Dividends ($0.1200 per share) | - |
|
| - |
|
| - |
|
| (2,050) |
|
| - |
|
| (2,050) |
Repurchase of Common Stock | (435,461) |
|
| (4) |
|
| (6,308) |
|
| - |
|
| - |
|
| (6,312) |
Stock Based Compensation | - |
|
| - |
|
| 743 |
|
| - |
|
| - |
|
| 743 |
Impact of Transactions Under Compensation Plans, net | 85,620 |
|
| - |
|
| 461 |
|
| - |
|
| - |
|
| 461 |
Balance, September 30, 2016 | 16,807,078 |
| $ | 168 |
| $ | 33,152 |
| $ | 264,581 |
| $ | (21,277) |
| $ | 276,624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, January 1, 2017 | 16,844,698 |
| $ | 168 |
| $ | 34,188 |
| $ | 267,037 |
| $ | (26,225) |
| $ | 275,168 |
Net Income | - |
|
| - |
|
| - |
|
| 10,860 |
|
| - |
|
| 10,860 |
Other Comprehensive Income, net of tax | - |
|
| - |
|
| - |
|
| - |
|
| 351 |
|
| 351 |
Cash Dividends ($0.1700 per share) | - |
|
| - |
|
| - |
|
| (2,884) |
|
| - |
|
| (2,884) |
Stock Based Compensation | - |
|
| - |
|
| 1,196 |
|
| - |
|
| - |
|
| 1,196 |
Impact of Transactions Under Compensation Plans, net | 121,349 |
|
| 2 |
|
| 508 |
|
| - |
|
| - |
|
| 510 |
Balance, September 30, 2017 | 16,966,047 |
| $ | 170 |
| $ | 35,892 |
| $ | 275,013 |
| $ | (25,874) |
| $ | 285,201 |
|
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The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. |
7
CAPITAL CITY BANK GROUP, INC. | |||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
(Unaudited) | |||||
|
|
|
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|
|
| Nine Months Ended September 30, | ||||
(Dollars in Thousands) | 2017 |
| 2016 | ||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
Net Income | $ | 10,860 |
| $ | 8,450 |
Adjustments to Reconcile Net Income to |
|
|
|
|
|
Cash Provided by Operating Activities: |
|
|
|
|
|
Provision for Loan Losses |
| 1,389 |
|
| 355 |
Depreciation |
| 4,966 |
|
| 5,198 |
Amortization of Premiums, Discounts, and Fees, net |
| 4,928 |
|
| 4,642 |
Gain on Partial Retirement of Trust Preferred Securities |
| - |
|
| (2,487) |
Net Decrease in Loans Held-for-Sale |
| 3,086 |
|
| 1,122 |
Stock Compensation |
| 1,196 |
|
| 743 |
Net Tax Benefit From Stock-Based Compensation |
| (223) |
|
| - |
Deferred Income Taxes |
| 247 |
|
| 3,087 |
Net Loss on Sales and Write-Downs of Other Real Estate Owned |
| 456 |
|
| 2,523 |
Loss on Disposal of Premises and Equipment |
| 276 |
|
| 131 |
Net Decrease (Increase) in Other Assets |
| 2,559 |
|
| (6,610) |
Net Increase in Other Liabilities |
| 6,487 |
|
| 6,733 |
Net Cash Provided By Operating Activities |
| 36,227 |
|
| 23,887 |
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
Securities Held to Maturity: |
|
|
|
|
|
Purchases |
| (60,703) |
|
| (40,320) |
Payments, Maturities, and Calls |
| 53,031 |
|
| 37,495 |
Securities Available for Sale: |
|
|
|
|
|
Purchases |
| (122,949) |
|
| (125,975) |
Payments, Maturities, and Calls |
| 130,997 |
|
| 74,450 |
Purchases of Loans Held for Investment |
| (44,083) |
|
| - |
Net Increase in Loans |
| (27,327) |
|
| (68,775) |
Proceeds From Sales of Other Real Estate Owned |
| 5,952 |
|
| 7,338 |
Purchases of Premises and Equipment |
| (3,052) |
|
| (3,696) |
Net Cash Used In Investing Activities |
| (68,134) |
|
| (119,483) |
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
Net (Decrease) Increase in Deposits |
| (64,669) |
|
| 12,258 |
Net Decrease in Short-Term Borrowings |
| (3,020) |
|
| (50,023) |
Redemption of Subordinated Notes |
| - |
|
| (7,500) |
Repayment of Other Long-Term Borrowings |
| (2,786) |
|
| (5,819) |
Dividends Paid |
| (2,884) |
|
| (2,050) |
Payments to Repurchase Common Stock |
| - |
|
| (6,312) |
Issuance of Common Stock Under Compensation Plans |
| 333 |
|
| 321 |
Net Cash Used In Financing Activities |
| (73,026) |
|
| (59,125) |
|
|
|
|
|
|
NET DECREASE IN CASH AND CASH EQUIVALENTS |
| (104,933) |
|
| (154,721) |
|
|
|
|
|
|
Cash and Cash Equivalents at Beginning of Period |
| 296,047 |
|
| 378,905 |
Cash and Cash Equivalents at End of Period | $ | 191,114 |
| $ | 224,184 |
|
|
|
|
|
|
Supplemental Cash Flow Disclosures: |
|
|
|
|
|
Interest Paid | $ | 2,825 |
| $ | 2,422 |
Income Taxes Paid (Refunded) | $ | 4,044 |
| $ | (355) |
|
|
|
|
|
|
Noncash Investing and Financing Activities: |
|
|
|
|
|
Loans and Premises Transferred to Other Real Estate Owned | $ | 2,024 |
| $ | 3,309 |
|
|
|
|
|
|
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. |
|
8
NOTE 2 – INVESTMENT SECURITIES | |||||||||||||||||||||||
|
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|
Investment Portfolio Composition. The amortized cost and related market value of investment securities available-for-sale and | |||||||||||||||||||||||
held-to-maturity were as follows: | |||||||||||||||||||||||
| September 30, 2017 |
|
| December 31, 2016 | |||||||||||||||||||
| Amortized | Unrealized | Unrealized | Market | Amortized | Unrealized | Unrealized | Market | |||||||||||||||
| Cost |
| Gains |
| Losses |
| Value |
| Cost |
| Gain |
| Losses |
| Value | ||||||||
Available for Sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government Treasury | $ | 257,635 |
| $ | 32 |
| $ | 869 |
| $ | 256,798 |
| $ | 286,867 |
| $ | 262 |
| $ | 851 |
| $ | 286,278 |
U.S. Government Agency |
| 147,550 |
|
| 729 |
|
| 290 |
|
| 147,989 |
|
| 131,489 |
|
| 495 |
|
| 344 |
|
| 131,640 |
States and Political Subdivisions |
| 95,869 |
|
| 175 |
|
| 54 |
|
| 95,990 |
|
| 95,197 |
|
| 23 |
|
| 381 |
|
| 94,839 |
Mortgage-Backed Securities |
| 1,218 |
|
| 114 |
|
| - |
|
| 1,332 |
|
| 1,312 |
|
| 118 |
|
| - |
|
| 1,430 |
Equity Securities(1) |
| 8,737 |
|
| - |
|
| - |
|
| 8,737 |
|
| 8,547 |
|
| - |
|
| - |
|
| 8,547 |
Total | $ | 511,009 |
| $ | 1,050 |
| $ | 1,213 |
| $ | 510,846 |
| $ | 523,412 |
| $ | 898 |
| $ | 1,576 |
| $ | 522,734 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government Treasury | $ | 93,309 |
| $ | 2 |
| $ | 183 |
| $ | 93,128 |
| $ | 119,131 |
| $ | 107 |
| $ | 81 |
| $ | 119,157 |
States and Political Subdivisions |
| 7,051 |
|
| 31 |
|
| 2 |
|
| 7,080 |
|
| 8,175 |
|
| 1 |
|
| 38 |
|
| 8,138 |
Mortgage-Backed Securities |
| 83,902 |
|
| 55 |
|
| 642 |
|
| 83,315 |
|
| 50,059 |
|
| 29 |
|
| 637 |
|
| 49,451 |
Total | $ | 184,262 |
| $ | 88 |
| $ | 827 |
| $ | 183,523 |
| $ | 177,365 |
| $ | 137 |
| $ | 756 |
| $ | 176,746 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Securities | $ | 695,271 |
| $ | 1,138 |
| $ | 2,040 |
| $ | 694,369 |
| $ | 700,777 |
| $ | 1,035 |
| $ | 2,332 |
| $ | 699,480 |
9
The Bank, as a member of the Federal Home Loan Bank of Atlanta (“FHLB”), is required
to own capital stock in the FHLB based
| Available for Sale |
| Held to Maturity | ||||||||
(Dollars in Thousands) | Amortized Cost |
| Market Value |
| Amortized Cost |
| Market Value | ||||
Due in one year or less | $ | 138,454 |
| $ | 138,421 |
| $ | 63,439 |
| $ | 63,370 |
Due after one through five years |
| 253,590 |
|
| 252,720 |
|
| 36,922 |
|
| 36,838 |
Mortgage-Backed Securities |
| 1,217 |
|
| 1,332 |
|
| 83,901 |
|
| 83,315 |
U.S. Government Agency |
| 109,011 |
|
| 109,636 |
|
| - |
|
| - |
Equity Securities |
| 8,737 |
|
| 8,737 |
|
| - |
|
| - |
Total | $ | 511,009 |
| $ | 510,846 |
| $ | 184,262 |
| $ | 183,523 |
10
| Less Than |
| Greater Than |
|
|
|
|
|
| ||||||||
| 12 Months |
| 12 Months |
| Total | ||||||||||||
| Market |
| Unrealized |
| Market |
| Unrealized |
| Market |
| Unrealized | ||||||
(Dollars in Thousands) | Value |
| Losses |
| Value |
| Losses |
| Value |
| Losses | ||||||
September 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for Sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government Treasury | $ | 191,720 |
| $ | 759 |
| $ | 9,981 |
| $ | 110 |
| $ | 201,701 |
| $ | 869 |
U.S. Government Agency |
| 34,775 |
|
| 126 |
|
| 17,853 |
|
| 164 |
|
| 52,628 |
|
| 290 |
States and Political Subdivisions |
| 23,031 |
|
| 22 |
|
| 5,129 |
|
| 32 |
|
| 28,160 |
|
| 54 |
Total |
| 249,526 |
|
| 907 |
|
| 32,963 |
|
| 306 |
|
| 282,489 |
|
| 1,213 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government Treasury |
| 83,173 |
|
| 183 |
|
| - |
|
| - |
|
| 83,173 |
|
| 183 |
States and Political Subdivisions |
| 504 |
|
| 2 |
|
| - |
|
| - |
|
| 504 |
|
| 2 |
Mortgage-Backed Securities |
| 47,159 |
|
| 579 |
|
| 4,373 |
|
| 63 |
|
| 51,532 |
|
| 642 |
Total | $ | 130,836 |
| $ | 764 |
| $ | 4,373 |
| $ | 63 |
| $ | 135,209 |
| $ | 827 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for Sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government Treasury | $ | 116,704 |
| $ | 851 |
| $ | - |
| $ | - |
| $ | 116,704 |
| $ | 851 |
U.S. Government Agency |
| 48,520 |
|
| 310 |
|
| 6,699 |
|
| 34 |
|
| 55,219 |
|
| 344 |
States and Political Subdivisions |
| 81,521 |
|
| 380 |
|
| 294 |
|
| 1 |
|
| 81,815 |
|
| 381 |
Mortgage-Backed Securities |
| 3 |
|
| - |
|
| - |
|
| - |
|
| 3 |
|
| - |
Total |
| 246,748 |
|
| 1,541 |
|
| 6,993 |
|
| 35 |
|
| 253,741 |
|
| 1,576 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government Treasury |
| 35,210 |
|
| 81 |
|
| - |
|
| - |
|
| 35,210 |
|
| 81 |
States and Political Subdivisions |
| 7,491 |
|
| 38 |
|
| - |
|
| - |
|
| 7,491 |
|
| 38 |
Mortgage-Backed Securities |
| 36,710 |
|
| 599 |
|
| 4,010 |
|
| 38 |
|
| 40,720 |
|
| 637 |
Total | $ | 79,411 |
| $ | 718 |
| $ | 4,010 |
| $ | 38 |
| $ | 83,421 |
| $ | 756 |
Maturity
11
(Dollars in Thousands) | September 30, 2017 |
| December 31, 2016 | |||
Commercial, Financial and Agricultural | $ | 215,963 |
| $ | 216,404 | |
Real Estate – Construction |
| 67,813 |
|
| 58,443 | |
Real Estate – Commercial Mortgage |
| 527,331 |
|
| 503,978 | |
Real Estate – Residential(1) |
| 315,583 |
|
| 281,509 | |
Real Estate – Home Equity |
| 228,499 |
|
| 236,512 | |
Consumer |
| 275,149 |
|
| 264,443 | |
| Loans, Net of Unearned Income | $ | 1,630,338 |
| $ | 1,561,289 |
2022.
Company’s 2022 Form10-K/A.
| September 30, 2017 |
| December 31, 2016 | ||||||||
(Dollars in Thousands) | Nonaccrual |
| 90 + Days |
| Nonaccrual |
| 90 + Days | ||||
Commercial, Financial and Agricultural | $ | 41 |
| $ | - |
| $ | 468 |
| $ | - |
Real Estate – Construction |
| 362 |
|
| - |
|
| 311 |
|
| - |
Real Estate – Commercial Mortgage |
| 2,425 |
|
| - |
|
| 3,410 |
|
| - |
Real Estate – Residential |
| 2,350 |
|
| - |
|
| 2,330 |
|
| - |
Real Estate – Home Equity |
| 1,108 |
|
| - |
|
| 1,774 |
|
| - |
Consumer |
| 272 |
|
| - |
|
| 240 |
|
| - |
Total Nonaccrual Loans | $ | 6,558 |
| $ | - |
| $ | 8,533 |
| $ | - |
12
| 30-59 |
| 60-89 |
| 90 + |
| Total |
| Total |
| Total | ||||||
(Dollars in Thousands) | DPD |
| DPD |
| DPD |
| Past Due |
| Current |
| Loans(1) | ||||||
September 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, Financial and Agricultural | $ | 249 |
| $ | 584 |
| $ | - |
| $ | 833 |
| $ | 215,089 |
| $ | 215,963 |
Real Estate – Construction |
| - |
|
| 5 |
|
| - |
|
| 5 |
|
| 67,446 |
|
| 67,813 |
Real Estate – Commercial Mortgage |
| 1,277 |
|
| 168 |
|
| - |
|
| 1,445 |
|
| 523,461 |
|
| 527,331 |
Real Estate – Residential |
| 374 |
|
| 754 |
|
| - |
|
| 1,128 |
|
| 312,105 |
|
| 315,583 |
Real Estate – Home Equity |
| 455 |
|
| 1 |
|
| - |
|
| 456 |
|
| 226,935 |
|
| 228,499 |
Consumer |
| 1,266 |
|
| 554 |
|
| - |
|
| 1,820 |
|
| 273,057 |
|
| 275,149 |
Total Past Due Loans | $ | 3,621 |
| $ | 2,066 |
| $ | - |
| $ | 5,687 |
| $ | 1,618,093 |
| $ | 1,630,338 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, Financial and Agricultural | $ | 209 |
| $ | 48 |
| $ | - |
| $ | 257 |
| $ | 215,679 |
| $ | 216,404 |
Real Estate – Construction |
| 949 |
|
| 282 |
|
| - |
|
| 1,231 |
|
| 56,901 |
|
| 58,443 |
Real Estate – Commercial Mortgage |
| 835 |
|
| 1 |
|
| - |
|
| 836 |
|
| 499,732 |
|
| 503,978 |
Real Estate – Residential |
| 1,199 |
|
| 490 |
|
| - |
|
| 1,689 |
|
| 277,490 |
|
| 281,509 |
Real Estate – Home Equity |
| 577 |
|
| 51 |
|
| - |
|
| 628 |
|
| 234,110 |
|
| 236,512 |
Consumer |
| 1,516 |
|
| 281 |
|
| - |
|
| 1,797 |
|
| 262,406 |
|
| 264,443 |
Total Past Due Loans | $ | 5,285 |
| $ | 1,153 |
| $ | - |
| $ | 6,438 |
| $ | 1,546,318 |
| $ | 1,561,289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Total Loans include nonaccrual loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Loan Losses
13
The following table detailspresents the activity in the allowance for loan losses by portfolio class. Allocation of a portion of the allowance to one categoryamortized cost basis of loans does not preclude its availability to absorb losses in other categories.
|
| Commercial, |
|
|
|
| Real Estate |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Financial, |
| Real Estate |
| Commercial |
| Real Estate |
| Real Estate |
|
|
|
|
|
| |||||
(Dollars in Thousands) | Agricultural |
| Construction |
| Mortgage |
| Residential |
| Home Equity | Consumer |
| Total | |||||||||
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
September 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Beginning Balance | $ | 1,095 |
| $ | 114 |
| $ | 3,825 |
| $ | 3,384 |
| $ | 2,524 |
| $ | 2,300 |
| $ | 13,242 | |
| Provision for Loan Losses |
| 208 |
|
| (26) |
|
| 286 |
|
| (32) |
|
| (103) |
|
| 157 |
|
| 490 |
| Charge-Offs |
| (276) |
|
| - |
|
| (94) |
|
| (125) |
|
| (50) |
|
| (455) |
|
| (1,000) |
| Recoveries |
| 79 |
|
| 50 |
|
| 69 |
|
| 60 |
|
| 84 |
|
| 265 |
|
| 607 |
| Net Charge-Offs |
| (197) |
|
| 50 |
|
| (25) |
|
| (65) |
|
| 34 |
|
| (190) |
|
| (393) |
Ending Balance | $ | 1,106 |
| $ | 138 |
| $ | 4,086 |
| $ | 3,287 |
| $ | 2,455 |
| $ | 2,267 |
| $ | 13,339 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
September 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Beginning Balance | $ | 1,198 |
| $ | 168 |
| $ | 4,315 |
| $ | 3,445 |
| $ | 2,297 |
| $ | 2,008 |
| $ | 13,431 | |
| Provision for Loan Losses |
| 401 |
|
| (80) |
|
| 264 |
|
| (348) |
|
| 148 |
|
| 1,004 |
|
| 1,389 |
| Charge-Offs |
| (693) |
|
| - |
|
| (643) |
|
| (285) |
|
| (142) |
|
| (1,616) |
|
| (3,379) |
| Recoveries |
| 200 |
|
| 50 |
|
| 150 |
|
| 475 |
|
| 152 |
|
| 871 |
|
| 1,898 |
| Net Charge-Offs |
| (493) |
|
| 50 |
|
| (493) |
|
| 190 |
|
| 10 |
|
| (745) |
|
| (1,481) |
Ending Balance | $ | 1,106 |
| $ | 138 |
| $ | 4,086 |
| $ | 3,287 |
| $ | 2,455 |
| $ | 2,267 |
| $ | 13,339 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
September 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Beginning Balance | $ | 1,048 |
| $ | 126 |
| $ | 4,389 |
| $ | 3,835 |
| $ | 2,391 |
| $ | 1,888 |
| $ | 13,677 | |
| Provision for Loan Losses |
| 163 |
|
| (3) |
|
| 224 |
|
| (324) |
|
| (307) |
|
| 247 |
|
| - |
| Charge-Offs |
| (143) |
|
| - |
|
| (5) |
|
| (96) |
|
| (51) |
|
| (479) |
|
| (774) |
| Recoveries |
| 199 |
|
| - |
|
| 45 |
|
| 139 |
|
| 237 |
|
| 221 |
|
| 841 |
| Net Charge-Offs |
| 56 |
|
| - |
|
| 40 |
|
| 43 |
|
| 186 |
|
| (258) |
|
| 67 |
Ending Balance | $ | 1,267 |
| $ | 123 |
| $ | 4,653 |
| $ | 3,554 |
| $ | 2,270 |
| $ | 1,877 |
| $ | 13,744 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
September 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Beginning Balance | $ | 905 |
| $ | 101 |
| $ | 4,498 |
| $ | 4,409 |
| $ | 2,473 |
| $ | 1,567 |
| $ | 13,953 | |
| Provision for Loan Losses |
| 559 |
|
| 22 |
|
| 71 |
|
| (1,030) |
|
| (168) |
|
| 901 |
|
| 355 |
| Charge-Offs |
| (484) |
|
| - |
|
| (279) |
|
| (779) |
|
| (412) |
|
| (1,356) |
|
| (3,310) |
| Recoveries |
| 287 |
|
| - |
|
| 363 |
|
| 954 |
|
| 377 |
|
| 765 |
|
| 2,746 |
| Net Charge-Offs |
| (197) |
|
| - |
|
| 84 |
|
| 175 |
|
| (35) |
|
| (591) |
|
| (564) |
Ending Balance | $ | 1,267 |
| $ | 123 |
| $ | 4,653 |
| $ | 3,554 |
| $ | 2,270 |
| $ | 1,877 |
| $ | 13,744 |
14
| Commercial, |
|
|
|
| Real Estate |
|
|
|
|
|
|
|
|
|
|
|
| ||
| Financial, |
| Real Estate |
| Commercial |
| Real Estate |
| Real Estate |
|
|
|
|
|
| |||||
(Dollars in Thousands | Agricultural |
| Construction |
| Mortgage |
| Residential |
| Home Equity | Consumer |
| Total | ||||||||
September 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end amount |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocated to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Individually |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Evaluated for Impairment | $ | 88 |
| $ | 24 |
| $ | 1,846 |
| $ | 1,196 |
| $ | 454 |
| $ | 3 |
| $ | 3,611 |
Loans Collectively |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Evaluated for Impairment |
| 1,018 |
|
| 114 |
|
| 2,240 |
|
| 2,091 |
|
| 2,001 |
|
| 2,264 |
|
| 9,728 |
Ending Balance | $ | 1,106 |
| $ | 138 |
| $ | 4,086 |
| $ | 3,287 |
| $ | 2,455 |
| $ | 2,267 |
| $ | 13,339 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end amount |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocated to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Individually |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Evaluated for Impairment | $ | 80 |
| $ | - |
| $ | 2,038 |
| $ | 1,561 |
| $ | 335 |
| $ | 6 |
| $ | 4,020 |
Loans Collectively |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Evaluated for Impairment |
| 1,118 |
|
| 168 |
|
| 2,277 |
|
| 1,884 |
|
| 1,962 |
|
| 2,002 |
|
| 9,411 |
Ending Balance | $ | 1,198 |
| $ | 168 |
| $ | 4,315 |
| $ | 3,445 |
| $ | 2,297 |
| $ | 2,008 |
| $ | 13,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end amount |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocated to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Individually |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Evaluated for Impairment | $ | 132 |
| $ | - |
| $ | 2,124 |
| $ | 1,669 |
| $ | 276 |
| $ | 7 |
| $ | 4,208 |
Loans Collectively |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Evaluated for Impairment |
| 1,135 |
|
| 123 |
|
| 2,529 |
|
| 1,885 |
|
| 1,994 |
|
| 1,870 |
|
| 9,536 |
Ending Balance | $ | 1,267 |
| $ | 123 |
| $ | 4,653 |
| $ | 3,554 |
| $ | 2,270 |
| $ | 1,877 |
| $ | 13,744 |
15
The Company’s recorded investment
|
| Commercial, |
|
|
|
| Real Estate |
|
|
|
|
|
|
|
|
|
|
| |||
|
| Financial, |
| Real Estate |
| Commercial |
| Real Estate |
| Real Estate |
|
|
|
|
|
| |||||
(Dollars in Thousands) | Agricultural |
| Construction | Mortgage |
| Residential |
| Home Equity | Consumer |
| Total | ||||||||||
September 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Individually Evaluated for |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Impairment | $ | 847 |
| $ | 363 |
| $ | 20,716 |
| $ | 13,258 |
| $ | 2,915 |
| $ | 132 |
| $ | 38,231 | |
Collectively Evaluated for |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Impairment |
| 215,116 |
|
| 67,450 |
|
| 506,615 |
|
| 302,325 |
|
| 225,584 |
|
| 275,017 |
|
| 1,592,107 | |
Total | $ | 215,963 |
| $ | 67,813 |
| $ | 527,331 |
| $ | 315,583 |
| $ | 228,499 |
| $ | 275,149 |
| $ | 1,630,338 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Individually Evaluated for |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Impairment | $ | 1,042 |
| $ | 247 |
| $ | 23,855 |
| $ | 15,596 |
| $ | 3,375 |
| $ | 174 |
| $ | 44,289 | |
Collectively Evaluated for |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Impairment |
| 215,362 |
|
| 58,196 |
|
| 480,123 |
|
| 265,913 |
|
| 233,137 |
|
| 264,269 |
|
| 1,517,000 | |
Total | $ | 216,404 |
| $ | 58,443 |
| $ | 503,978 |
| $ | 281,509 |
| $ | 236,512 |
| $ | 264,443 |
| $ | 1,561,289 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Individually Evaluated for |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Impairment | $ | 949 |
| $ | - |
| $ | 20,794 |
| $ | 16,457 |
| $ | 2,776 |
| $ | 186 |
| $ | 41,162 | |
Collectively Evaluated for |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Impairment |
| 222,329 |
|
| 54,107 |
|
| 476,981 |
|
| 270,611 |
|
| 232,657 |
|
| 259,665 |
|
| 1,516,350 | |
Total | $ | 223,278 |
| $ | 54,107 |
| $ | 497,775 |
| $ | 287,068 |
| $ | 235,433 |
| $ | 259,851 |
| $ | 1,557,512 |
Impaired Loans. Loans are deemed to be impairedis collateral dependent when based on current information and events, it is probable that the Company will not be able to collect all amounts due (principal and interest payments), according to the contractual terms of the loan agreement. Loans, for which the terms have been modified, and for which the borrower is experiencing financial difficulties,difficulty and repayment of the loan is dependent onthe
The following table presentsDecember 31, 2022, the Company had $
|
| Unpaid |
| Recorded |
| Recorded |
|
|
| |||
|
| Principal |
| Investment |
| Investment |
| Related | ||||
(Dollars in Thousands) |
| Balance |
| With No Allowance | With Allowance |
| Allowance | |||||
September 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, Financial and Agricultural |
| $ | 847 |
| $ | 122 |
| $ | 725 |
| $ | 88 |
Real Estate – Construction |
|
| 363 |
|
| 298 |
|
| 65 |
|
| 24 |
Real Estate – Commercial Mortgage |
|
| 20,716 |
|
| 2,141 |
|
| 18,575 |
|
| 1,846 |
Real Estate – Residential |
|
| 13,258 |
|
| 1,962 |
|
| 11,296 |
|
| 1,196 |
Real Estate – Home Equity |
|
| 2,915 |
|
| 902 |
|
| 2,013 |
|
| 454 |
Consumer |
|
| 132 |
|
| 58 |
|
| 74 |
|
| 3 |
Total |
| $ | 38,231 |
| $ | 5,483 |
| $ | 32,748 |
| $ | 3,611 |
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, Financial and Agricultural |
| $ | 1,042 |
| $ | 565 |
| $ | 477 |
| $ | 80 |
Real Estate – Construction |
|
| 247 |
|
| - |
|
| 247 |
|
| - |
Real Estate – Commercial Mortgage |
|
| 23,855 |
|
| 8,954 |
|
| 14,901 |
|
| 2,038 |
Real Estate – Residential |
|
| 15,596 |
|
| 2,509 |
|
| 13,087 |
|
| 1,561 |
Real Estate – Home Equity |
|
| 3,375 |
|
| 1,871 |
|
| 1,504 |
|
| 335 |
Consumer |
|
| 174 |
|
| 65 |
|
| 109 |
|
| 6 |
Total |
| $ | 44,289 |
| $ | 13,964 |
| $ | 30,325 |
| $ | 4,020 |
16
The following table summarizes the average recorded investment and interest income recognized by class of impaired loans.
|
| Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||||||||||||||||||
|
| 2017 |
| 2016 |
| 2017 |
| 2016 | ||||||||||||||||
|
| Average |
| Total |
| Average |
| Total |
| Average |
| Total |
| Average |
| Total | ||||||||
|
| Recorded |
| Interest |
| Recorded |
| Interest |
| Recorded |
| Interest |
| Recorded |
| Interest | ||||||||
(Dollars in Thousands) |
| Investment |
| Income |
| Investment |
| Income |
| Investment |
| Income |
| Investment |
| Income | ||||||||
Commercial, Financial and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agricultural |
| $ | 963 |
| $ | 12 |
| $ | 871 |
| $ | 12 |
| $ | 1,051 |
| $ | 35 |
| $ | 847 |
| $ | 37 |
Real Estate – Construction |
|
| 363 |
|
| - |
|
| - |
|
| - |
|
| 334 |
|
| 2 |
|
| 24 |
|
| - |
Real Estate – Commercial Mortgage |
|
| 21,109 |
|
| 219 |
|
| 20,692 |
|
| 203 |
|
| 22,283 |
|
| 662 |
|
| 20,757 |
|
| 658 |
Real Estate – Residential |
|
| 14,068 |
|
| 162 |
|
| 17,091 |
|
| 197 |
|
| 14,608 |
|
| 516 |
|
| 17,743 |
|
| 602 |
Real Estate – Home Equity |
|
| 3,114 |
|
| 28 |
|
| 2,824 |
|
| 29 |
|
| 3,280 |
|
| 81 |
|
| 3,001 |
|
| 84 |
Consumer |
|
| 136 |
|
| 2 |
|
| 196 |
|
| 2 |
|
| 148 |
|
| 6 |
|
| 215 |
|
| 7 |
Total |
| $ | 39,753 |
| $ | 423 |
| $ | 41,674 |
| $ | 443 |
| $ | 41,704 |
| $ | 1,302 |
| $ | 42,587 |
| $ | 1,388 |
owner-occupiedowner-on-siteon-
Real Estate Residential – Residential mortgage loans held in the Company’s loan portfolio are made to borrowers that demonstrate the ability to make scheduled payments with full consideration to underwriting factors such as current income, employment status, current assets, and other financial resources, credit history, and the value of the collateral. Collateral consists of mortgage liens on 1-4 family residential properties. Collateral values are determined based upon third party appraisals and evaluations.
17
Real Estate Home Equity – Home equity loans and lines are made to qualified individuals
for legitimate purposes generally secured
|
| Commercial, |
|
|
|
|
|
|
|
|
| |
|
| Financial, |
|
|
|
|
|
|
| Total Criticized | ||
(Dollars in Thousands) |
| Agriculture |
| Real Estate |
| Consumer |
| Loans | ||||
September 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
Special Mention |
| $ | 9,277 |
| $ | 16,105 |
| $ | 317 |
| $ | 25,699 |
Substandard |
|
| 1,322 |
|
| 34,367 |
|
| 856 |
|
| 36,545 |
Doubtful |
|
| - |
|
| - |
|
| - |
|
| - |
Total Criticized Loans |
| $ | 10,599 |
| $ | 50,472 |
| $ | 1,173 |
| $ | 62,244 |
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
Special Mention |
| $ | 3,300 |
| $ | 23,183 |
| $ | 216 |
| $ | 26,699 |
Substandard |
|
| 1,158 |
|
| 39,800 |
|
| 549 |
|
| 41,507 |
Doubtful |
|
| - |
|
| - |
|
| - |
|
| - |
Total Criticized Loans |
| $ | 4,458 |
| $ | 62,983 |
| $ | 765 |
| $ | 68,206 |
Troubled Debt RestructuringsNational Mortgage Association (“TDRs”FNMA”) on a non-
18
The following table presents loans classified as TDRs.
|
| September 30, 2017 |
| December 31, 2016 | ||||||||
(Dollars in Thousands) |
| Accruing |
| Nonaccruing |
| Accruing |
| Nonaccruing | ||||
Commercial, Financial and Agricultural |
| $ | 826 |
| $ | 21 |
| $ | 772 |
| $ | 40 |
Real Estate – Construction |
|
| - |
|
| 65 |
|
| - |
|
| - |
Real Estate – Commercial Mortgage |
|
| 18,460 |
|
| 1,061 |
|
| 20,673 |
|
| 1,259 |
Real Estate – Residential |
|
| 11,494 |
|
| 991 |
|
| 13,969 |
|
| 444 |
Real Estate – Home Equity |
|
| 2,515 |
|
| 187 |
|
| 2,647 |
|
| - |
Consumer |
|
| 132 |
|
| - |
|
| 172 |
|
| - |
Total TDRs |
| $ | 33,427 |
| $ | 2,325 |
| $ | 38,233 |
| $ | 1,743 |
Loans classified as TDRs during the periods indicated are presented in the table below. The modifications made during the reporting period involved either an extension of the loan term, an interest rate adjustment, or a principal moratorium, and the financial impact of these modifications was not material.
|
| Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||||||||||
|
| 2017 |
| 2017 | ||||||||||||
|
|
|
| Pre- |
| Post- |
|
|
| Pre- |
| Post- | ||||
|
| Number |
| Modified |
| Modified |
| Number |
| Modified |
| Modified | ||||
|
| of |
| Recorded |
| Recorded |
| of |
| Recorded |
| Recorded | ||||
(Dollars in Thousands) |
| Contracts |
| Investment |
| Investment |
| Contracts |
| Investment |
| Investment | ||||
Commercial, Financial and Agricultural |
| 1 |
| $ | 32 |
| $ | 22 |
| 1 |
| $ | 32 |
| $ | 22 |
Real Estate – Construction |
| - |
|
| - |
|
| - |
| 1 |
|
| 64 |
|
| 65 |
Real Estate – Commercial Mortgage |
| 1 |
|
| 160 |
|
| 70 |
| 1 |
|
| 160 |
|
| 70 |
Real Estate – Residential |
| 1 |
|
| 101 |
|
| 102 |
| 2 |
|
| 316 |
|
| 283 |
Real Estate – Home Equity |
| 3 |
|
| 149 |
|
| 147 |
| 4 |
|
| 205 |
|
| 203 |
Consumer |
| - |
|
| - |
|
| - |
| - |
|
| - |
|
| - |
Total TDRs |
| 6 |
| $ | 442 |
| $ | 341 |
| 9 |
| $ | 777 |
| $ | 643 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||||||||||
|
| 2016 |
| 2016 | ||||||||||||
|
|
|
| Pre- |
| Post- |
|
|
| Pre- |
| Post- | ||||
|
| Number |
| Modified |
| Modified |
| Number |
| Modified |
| Modified | ||||
|
| of |
| Recorded |
| Recorded |
| of |
| Recorded |
| Recorded | ||||
(Dollars in Thousands) |
| Contracts |
| Investment |
| Investment |
| Contracts |
| Investment |
| Investment | ||||
Commercial, Financial and Agricultural |
| - |
| $ | - |
| $ | - |
| - |
| $ | - |
| $ | - |
Real Estate – Construction |
| - |
|
| - |
|
| - |
| - |
|
| - |
|
| - |
Real Estate – Commercial Mortgage |
| - |
|
| - |
|
| - |
| 1 |
|
| 332 |
|
| 332 |
Real Estate – Residential |
| - |
|
| - |
|
| - |
| 6 |
|
| 589 |
|
| 590 |
Real Estate – Home Equity |
| 1 |
|
| 17 |
|
| 17 |
| 5 |
|
| 205 |
|
| 206 |
Consumer |
| - |
|
| - |
|
| - |
| - |
|
| - |
|
| - |
Total TDRs |
| 1 |
| $ | 17 |
| $ | 17 |
| 12 |
| $ | 1,126 |
| $ | 1,128 |
19
|
| Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||||||
|
| 2016 |
| 2016 | ||||||||
|
| Number |
| Post-Modified |
|
| Number |
| Post-Modified |
| ||
|
| of |
| Recorded |
|
| of |
| Recorded |
| ||
(Dollars in Thousands) |
| Contracts |
| Investment(1) |
|
| Contracts |
| Investment(1) |
| ||
Commercial, Financial and Agricultural |
| - |
| $ | - |
|
| - |
| $ | - |
|
Real Estate – Construction |
| - |
|
| - |
|
| - |
|
| - |
|
Real Estate – Commercial Mortgage |
| - |
|
| - |
|
| - |
|
| - |
|
Real Estate – Residential |
| - |
|
| - |
|
| 1 |
|
| 98 |
|
Real Estate – Home Equity |
| - |
|
| - |
|
| 1 |
|
| 3 |
|
Consumer |
| - |
|
| - |
|
| 1 |
|
| 35 |
|
Total TDRs |
| - |
| $ | - |
|
| 3 |
| $ | 136 |
|
(1) Recorded investment reflects charge-offs and additional funds advanced at timebelow summarizes the maturity of restructure, if applicable.
The following table provides information on how TDRs were modified during the periods indicated.
|
| Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||||
|
| 2017 |
| 2017 | ||||||
|
| Number of |
| Recorded |
| Number of |
| Recorded | ||
(Dollars in Thousands) |
| Contracts |
| Investment(1) |
| Contracts |
| Investment(1) | ||
Extended amortization |
| 1 |
| $ | 70 |
| 1 |
| $ | 70 |
Interest rate adjustment |
| - |
|
| - |
| 3 |
|
| 302 |
Extended amortization and interest rate adjustment |
| 4 |
|
| 249 |
| 4 |
|
| 249 |
Other |
| 1 |
|
| 22 |
| 1 |
|
| 22 |
Total TDRs |
| 6 |
| $ | 341 |
| 9 |
| $ | 643 |
|
| Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||||
|
| 2016 |
| 2016 | ||||||
|
| Number of |
| Recorded |
| Number of |
| Recorded | ||
(Dollars in Thousands) |
| Contracts |
| Investment(1) |
| Contracts |
| Investment(1) | ||
Extended amortization |
| 1 |
| $ | 17 |
| 2 |
| $ | 107 |
Interest rate adjustment |
| - |
|
| - |
| - |
|
| - |
Extended amortization and interest rate adjustment |
| - |
|
| - |
| 10 |
|
| 1,021 |
Total TDRs |
| 1 |
| $ | 17 |
| 12 |
| $ | 1,128 |
(1) Recorded investment reflects charge-offs and additional funds advanced at time of restructure, if applicable.
NOTE 4 – OTHER REAL ESTATE OWNED
The following table presents other real estate owned activity for the periods indicated.
| Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||||||
(Dollars in Thousands) | 2017 |
| 2016 |
| 2017 |
| 2016 | ||||
Beginning Balance | $ | 7,968 |
| $ | 14,622 |
| $ | 10,638 |
| $ | 19,290 |
Additions |
| 339 |
|
| 890 |
|
| 2,024 |
|
| 3,309 |
Valuation Write-downs |
| (350) |
|
| (397) |
|
| (1,118) |
|
| (1,910) |
Sales |
| (1,970) |
|
| (2,377) |
|
| (5,291) |
|
| (7,951) |
Other |
| - |
|
| - |
|
| (266) |
|
| - |
Ending Balance | $ | 5,987 |
| $ | 12,738 |
| $ | 5,987 |
| $ | 12,738 |
20
Net expenses applicable to other real estate owned include the following: | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||||||
(Dollars in Thousands) | 2017 |
| 2016 |
| 2017 |
| 2016 | ||||
Gains from the Sale of Properties | $ | (711) |
| $ | (70) |
| $ | (980) |
| $ | (364) |
Losses from the Sale of Properties |
| 123 |
|
| 216 |
|
| 318 |
|
| 977 |
Rental Income from Properties |
| (19) |
|
| (34) |
|
| (73) |
|
| (66) |
Property Carrying Costs |
| 139 |
|
| 312 |
|
| 397 |
|
| 849 |
Valuation Adjustments |
| 350 |
|
| 397 |
|
| 1,118 |
|
| 1,910 |
Total | $ | (118) |
| $ | 821 |
| $ | 780 |
| $ | 3,306 |
As of 2017,2023
The defined benefit plan was amended in December 2019 to remove plan eligibilityfor new associates hired after
| Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||||||
(Dollars in Thousands) | 2017 |
| 2016 |
| 2017 |
| 2016 | ||||
Service Cost | $ | 1,688 |
| $ | 1,613 |
| $ | 5,064 |
| $ | 4,839 |
Interest Cost |
| 1,437 |
|
| 1,397 |
|
| 4,312 |
|
| 4,191 |
Expected Return on Plan Assets |
| (2,006) |
|
| (1,934) |
|
| (6,019) |
|
| (5,802) |
Prior Service Cost Amortization |
| 56 |
|
| 69 |
|
| 167 |
|
| 207 |
Net Loss Amortization |
| 953 |
|
| 801 |
|
| 2,859 |
|
| 2,403 |
Net Periodic Benefit Cost | $ | 2,128 |
| $ | 1,946 |
| $ | 6,383 |
| $ | 5,838 |
|
|
|
|
|
|
|
|
|
|
|
|
Discount Rate |
| 4.21% |
|
| 4.52% |
|
| 4.21% |
|
| 4.52% |
Long-term Rate of Return on Assets |
| 7.25% |
|
| 7.50% |
|
| 7.25% |
|
| 7.50% |
The components of the net periodic benefit cost for the Company's SERP were as follows: | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||||||
(Dollars in Thousands) | 2017 |
| 2016 |
| 2017 |
| 2016 | ||||
Interest Cost | $ | 48 |
| $ | 40 |
| $ | 143 |
| $ | 120 |
Net Loss Amortization |
| 149 |
|
| 190 |
|
| 448 |
|
| 570 |
Net Periodic Benefit Cost | $ | 197 |
| $ | 230 |
| $ | 591 |
| $ | 690 |
|
|
|
|
|
|
|
|
|
|
|
|
Discount Rate |
| 3.92% |
|
| 4.13% |
|
| 3.92% |
|
| 4.13% |
| September 30, 2017 |
| December 31, 2016 | ||||||||||||||
(Dollars in Thousands) | Fixed |
| Variable |
| Total |
| Fixed |
| Variable |
| Total | ||||||
Commitments to Extend Credit (1) | $ | 90,441 |
| $ | 376,864 |
| $ | 467,305 |
| $ | 69,993 |
| $ | 332,420 |
| $ | 402,413 |
Standby Letters of Credit |
| 4,676 |
|
| - |
|
| 4,676 |
|
| 4,768 |
|
| - |
|
| 4,768 |
Total | $ | 95,117 |
| $ | 376,864 |
| $ | 471,981 |
| $ | 74,761 |
| $ | 332,420 |
| $ | 407,181 |
·
·
22
·Level 3 Inputs -
|
| Level 1 |
| Level 2 |
| Level 3 |
| Total Fair | ||||
(Dollars in Thousands) | Inputs |
| Inputs |
| Inputs |
| Value | |||||
September 30, 2017 |
|
|
|
|
|
|
|
|
|
|
| |
Securities Available for Sale: |
|
|
|
|
|
|
|
|
|
|
| |
| U.S. Government Treasury | $ | 256,798 |
| $ | - |
| $ | - |
| $ | 256,798 |
| U.S. Government Agency |
| - |
|
| 147,989 |
|
| - |
|
| 147,989 |
| States and Political Subdivisions |
| - |
|
| 95,990 |
|
| - |
|
| 95,990 |
| Mortgage-Backed Securities |
| - |
|
| 1,332 |
|
| - |
|
| 1,332 |
| Equity Securities |
| - |
|
| 8,737 |
|
| - |
|
| 8,737 |
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016 |
|
|
|
|
|
|
|
|
|
|
| |
Securities Available for Sale: |
|
|
|
|
|
|
|
|
|
|
| |
| U.S. Government Treasury | $ | 286,278 |
| $ | - |
| $ | - |
| $ | 286,278 |
| U.S. Government Agency |
| - |
|
| 131,640 |
|
| - |
|
| 131,640 |
| States and Political Subdivisions |
| - |
|
| 94,839 |
|
| - |
|
| 94,839 |
| Mortgage-Backed Securities |
| - |
|
| 1,430 |
|
| - |
|
| 1,430 |
| Equity Securities |
| - |
|
| 8,547 |
|
| - |
|
| 8,547 |
Impaired
Loans Held for Sale. These loans are carried at the lower of cost or fair value and are adjusted to fair value on a non-recurring basis. Fair value is based on observable markets rates for comparable loan products, which is considered a Level 2 fair value measurement.
23
Other Real Estate Owned
Sale.”
“exit price” valuation.
Short-Term and Long-Term Borrowings. The fair value of each note is calculated using present value techniques, based upon projected cash flows and estimated discount rates as well as rates being offered for similar debt.
24
|
| September 30, 2017 | ||||||||||
|
| Carrying |
| Level 1 |
| Level 2 |
| Level 3 | ||||
(Dollars in Thousands) |
| Value |
| Inputs |
| Inputs |
| Inputs | ||||
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
| $ | 50,420 |
| $ | 50,420 |
| $ | - |
| $ | - |
Short-Term Investments |
|
| 140,694 |
|
| 140,694 |
|
| - |
|
| - |
Investment Securities, Available for Sale |
|
| 510,846 |
|
| 256,798 |
|
| 254,048 |
|
| - |
Investment Securities, Held to Maturity |
|
| 184,262 |
|
| 93,128 |
|
| 90,395 |
|
| - |
Loans Held for Sale |
|
| 7,800 |
|
| - |
|
| 7,800 |
|
| - |
Loans, Net of Allowance for Loan Losses |
|
| 1,616,999 |
|
| - |
|
| - |
|
| 1,608,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
| $ | 2,347,617 |
| $ | - |
| $ | 2,280,468 |
| $ | - |
Short-Term Borrowings |
|
| 6,777 |
|
| - |
|
| 6,808 |
|
| - |
Subordinated Notes Payable |
|
| 52,887 |
|
| - |
|
| 41,012 |
|
| - |
Long-Term Borrowings |
|
| 15,047 |
|
| - |
|
| 15,238 |
|
| - |
|
| December 31, 2016 | ||||||||||
|
| Carrying |
| Level 1 |
| Level 2 |
| Level 3 | ||||
(Dollars in Thousands) |
| Value |
| Inputs |
| Inputs |
| Inputs | ||||
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
| $ | 48,268 |
| $ | 48,268 |
| $ | - |
| $ | - |
Short-Term Investments |
|
| 247,779 |
|
| 247,779 |
|
| - |
|
| - |
Investment Securities, Available for Sale |
|
| 522,734 |
|
| 286,278 |
|
| 236,456 |
|
| - |
Investment Securities, Held to Maturity |
|
| 177,365 |
|
| 119,157 |
|
| 57,589 |
|
| - |
Loans Held for Sale |
|
| 10,886 |
|
| - |
|
| 10,886 |
|
| - |
Loans, Net of Allowance for Loan Losses |
|
| 1,547,858 |
|
| - |
|
| - |
|
| 1,543,576 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
| $ | 2,412,286 |
| $ | - |
| $ | 2,272,572 |
| $ | - |
Short-Term Borrowings |
|
| 12,749 |
|
| - |
|
| 12,802 |
|
| - |
Subordinated Notes Payable |
|
| 52,887 |
|
| - |
|
| 42,024 |
|
| - |
Long-Term Borrowings |
|
| 14,881 |
|
| - |
|
| 15,122 |
|
| - |
(LOSS)
|
|
| Before |
| Tax |
| Net of | |||
|
|
| Tax |
| (Expense) |
| Tax | |||
(Dollars in Thousands) | Amount |
| Benefit |
| Amount | |||||
Three Months Ended September 30, 2017 |
|
|
|
|
|
|
|
| ||
Investment Securities: |
|
|
|
|
|
|
|
| ||
Change in net unrealized gain/loss on securities available for sale | $ | (99) |
| $ | 38 |
| $ | (61) | ||
Amortization of losses on securities transferred from available for sale to held to |
|
|
|
|
|
|
|
| ||
| maturity |
| 19 |
|
| (7) |
|
| 12 | |
|
| Total Other Comprehensive Loss | $ | (80) |
| $ | 31 |
| $ | (49) |
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2017 |
|
|
|
|
|
|
|
| ||
Investment Securities: |
|
|
|
|
|
|
|
| ||
Change in net unrealized gain/loss on securities available for sale | $ | 516 |
| $ | (200) |
| $ | 316 | ||
Amortization of losses on securities transferred from available for sale to held to |
|
|
|
|
|
|
|
| ||
| maturity |
| 57 |
|
| (22) |
|
| 35 | |
|
| Total Other Comprehensive Income | $ | 573 |
| $ | (222) |
| $ | 351 |
|
|
| Before |
| Tax |
| Net of | |||
|
|
| Tax |
| (Expense) |
| Tax | |||
(Dollars in Thousands) | Amount |
| Benefit |
| Amount | |||||
Three Months Ended September 30, 2016 |
|
|
|
|
|
|
|
| ||
Investment Securities: |
|
|
|
|
|
|
|
| ||
Change in net unrealized gain/loss on securities available for sale | $ | (1,158) |
| $ | 447 |
| $ | (711) | ||
Amortization of losses on securities transferred from available for sale to held to |
|
|
|
|
|
|
|
| ||
| maturity |
| 21 |
|
| (8) |
|
| 13 | |
|
| Total Other Comprehensive Income | $ | (1,137) |
| $ | 439 |
| $ | (698) |
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2016 |
|
|
|
|
|
|
|
| ||
Investment Securities: |
|
|
|
|
|
|
|
| ||
Change in net unrealized gain/loss on securities available for sale | $ | 1,535 |
| $ | (592) |
| $ | 943 | ||
Amortization of losses on securities transferred from available for sale to held to |
|
|
|
|
|
|
|
| ||
| maturity |
| 60 |
|
| (23) |
|
| 37 | |
|
| Total Other Comprehensive Income | $ | 1,595 |
| $ | (615) |
| $ | 980 |
Accumulated other comprehensive loss was comprised of the following components: | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Accumulated | |
| Securities |
|
|
|
| Other | ||
| Available |
| Retirement |
| Comprehensive | |||
(Dollars in Thousands) | for Sale |
| Plans |
| Loss | |||
Balance as of January 1, 2017 | $ | (583) |
| $ | (25,642) |
| $ | (26,225) |
Other comprehensive income during the period |
| 351 |
|
| - |
|
| 351 |
Balance as of September 30, 2017 | $ | (232) |
| $ | (25,642) |
| $ | (25,874) |
|
|
|
|
|
|
|
|
|
Balance as of January 1, 2016 | $ | (127) |
| $ | (22,130) |
| $ | (22,257) |
Other comprehensive income during the period |
| 980 |
|
| - |
|
| 980 |
Balance as of September 30, 2016 | $ | 853 |
| $ | (22,130) |
| $ | (21,277) |
26
NOTE 9 – ACCOUNTING STANDARDS UPDATES
ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. A significant portion of the Company’s revenue is comprised of net interest income on financial instruments, which is explicitly excluded from the scope of ASU 2014-09. In addition to interest income, the Company has various noninterest income revenue streams that the Company is in the process of assessing. The Company formed a revenue recognition working group that has completed its scoping and walk-through of noninterest income revenue streams. Amongst non-interest income revenue streams, mortgage banking fees are not in the scope of the standard. Management has substantially completed its detailed contract review for the remaining revenue streams and is in the process of evaluating any impact on its financial statements. ASU 2014-09 is effective for the Company on January 1, 2018 and must be retrospectively applied. The Company expects to adopt2023
ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurementperiod
ASU 2017-04, “Intangibles – Goodwill and 2022
ASU 2017-05, “Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) - Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Asset.” ASU 2017-05clarifies the scope of Subtopic 610-20 and adds guidance for partial sales of nonfinancial assets, including partial sales of real estate. Historically, accounting principles generally accepted in the United States (“GAAP”) contained several different accounting models to evaluate whether the transfer of certain assets qualified for sale treatment. ASU 2017-05 reduces the number of potential accounting models that might apply and clarifies which model does apply in various circumstances. ASU 2017-05 is effective for the Company on January 1, 2018 and is not expected to have a significant impact on its financial statements.
ASU 2017-07, “Compensation – Retirement Benefits (Topic 715).” ASU 2017-07requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other componentsperiod
ASU 2017-09, “Compensation – Stock Compensation (Topic 718).” ASU 2017-09 clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Modification accounting is required only if the fair value, or calculated intrinsic value if it is used to measure the award, the vesting conditions, or the classification of the award as equity or liability changes as a result of the change in terms or conditions. ASU 2017-09 is effective for the Company on January 1, 2018 and is not expected to have a significant impact on its financial statements.
27
ASU 2017-11, “Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815).” ASU 2017-11 has two parts (i) Accounting for Certain Financial Instruments with Down Round Features and (ii) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception. Part (i) changes the classification analysis of certain equity-linked financial instruments with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. Part (ii) re-characterizes the indefinite deferral of certain provisions of Topic 480 that are now presented as pending continent in the Codification, to a scope exception. Those amendments do not have an accounting effect. ASU 2017-11 is effective for the Company on January 1, 2019 and is not expected to have a significant impact on its financial statements.
ASU 2017-12, “Derivatives and Hedging (Topic 815).” ASU 2017-12 amends the hedge accounting recognition and presentation requirements in ASC 815. The amendments objectives are to (1) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities and (2) reduce the complexity of and to simplify the application of hedge accounting by preparers. ASU 2017-12 is effective for the Company on January 1, 2019 and is not expected to have a significant impact on its financial statements.
28
“our.”
A
10-K/A.
MEASURES (UNAUDITED)
|
| 2017 |
| 2016 |
| 2015 | ||||||||||||||||||
(Dollars in Thousands) |
| Third |
| Second |
| First |
| Fourth |
| Third |
| Second |
| First |
| Fourth | ||||||||
Shareowners' Equity (GAAP) |
| $ | 285,201 |
| $ | 281,513 |
| $ | 278,059 |
| $ | 275,168 |
| $ | 276,624 |
| $ | 274,824 |
| $ | 276,833 |
| $ | 274,352 |
Less: Goodwill (GAAP) |
|
| 84,811 |
|
| 84,811 |
|
| 84,811 |
|
| 84,811 |
|
| 84,811 |
|
| 84,811 |
|
| 84,811 |
|
| 84,811 |
Tangible Shareowners' Equity (non-GAAP) | A |
| 200,390 |
|
| 196,702 |
|
| 193,248 |
|
| 190,357 |
|
| 191,813 |
|
| 190,013 |
|
| 192,022 |
|
| 189,541 |
Total Assets (GAAP) |
|
| 2,790,842 |
|
| 2,814,843 |
|
| 2,895,531 |
|
| 2,845,197 |
|
| 2,753,154 |
|
| 2,767,636 |
|
| 2,792,186 |
|
| 2,797,860 |
Less: Goodwill (GAAP) |
|
| 84,811 |
|
| 84,811 |
|
| 84,811 |
|
| 84,811 |
|
| 84,811 |
|
| 84,811 |
|
| 84,811 |
|
| 84,811 |
Tangible Assets (non-GAAP) | B | $ | 2,706,031 |
| $ | 2,730,032 |
| $ | 2,810,720 |
| $ | 2,760,386 |
| $ | 2,668,343 |
| $ | 2,682,825 |
| $ | 2,707,375 |
| $ | 2,713,049 |
Tangible Common Equity Ratio (non-GAAP) | A/B |
| 7.41% |
|
| 7.21% |
|
| 6.88% |
|
| 6.90% |
|
| 7.19% |
|
| 7.08% |
|
| 7.09% |
|
| 6.99% |
29
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2017 |
| 2016 |
| 2015 | ||||||||||||||||||||||||||
(Dollars in Thousands, Except |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
(Per Share Data) | Third |
|
| Second |
|
| First |
|
| Fourth |
|
| Third |
|
| Second |
|
| First |
|
| Fourth |
| |||||||||
Summary of Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Interest Income | $ | 22,341 |
|
| $ | 21,422 |
|
| $ | 20,540 |
|
| $ | 20,832 |
|
| $ | 20,104 |
|
| $ | 20,174 |
|
| $ | 20,044 |
|
| $ | 20,602 |
|
| Interest Expense |
| 1,080 |
|
|
| 926 |
|
|
| 804 |
|
|
| 773 |
|
|
| 784 |
|
|
| 798 |
|
|
| 834 |
|
|
| 808 |
|
| Net Interest Income |
| 21,261 |
|
|
| 20,496 |
|
|
| 19,736 |
|
|
| 20,059 |
|
|
| 19,320 |
|
|
| 19,376 |
|
|
| 19,210 |
|
|
| 19,794 |
|
| Provision for Loan Losses |
| 490 |
|
|
| 589 |
|
|
| 310 |
|
|
| 464 |
|
|
| - |
|
|
| (97) |
|
|
| 452 |
|
|
| 513 |
|
| Net Interest Income After |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Provision for Loan Losses |
| 20,771 |
|
|
| 19,907 |
|
|
| 19,426 |
|
|
| 19,595 |
|
|
| 19,320 |
|
|
| 19,473 |
|
|
| 18,758 |
|
|
| 19,281 |
|
| Noninterest Income(2) |
| 12,996 |
|
|
| 13,135 |
|
|
| 12,718 |
|
|
| 12,778 |
|
|
| 13,011 |
|
|
| 15,215 |
|
|
| 12,677 |
|
|
| 13,221 |
|
| Noninterest Expense |
| 26,707 |
|
|
| 27,921 |
|
|
| 27,922 |
|
|
| 27,560 |
|
|
| 28,022 |
|
|
| 28,702 |
|
|
| 28,930 |
|
|
| 28,280 |
|
| Income Before Income Taxes |
| 7,060 |
|
|
| 5,121 |
|
|
| 4,222 |
|
|
| 4,813 |
|
|
| 4,309 |
|
|
| 5,986 |
|
|
| 2,505 |
|
|
| 4,222 |
|
| Income Tax Expense |
| 2,505 |
|
|
| 1,560 |
|
|
| 1,478 |
|
|
| 1,517 |
|
|
| 1,436 |
|
|
| 2,056 |
|
|
| 858 |
|
|
| 1,620 |
|
| Net Income |
| 4,555 |
|
|
| 3,561 |
|
|
| 2,744 |
|
|
| 3,296 |
|
|
| 2,873 |
|
|
| 3,930 |
|
|
| 1,647 |
|
|
| 2,602 |
|
| Net Interest Income (FTE) | $ | 21,595 |
|
| $ | 20,799 |
|
| $ | 20,006 |
|
| $ | 20,335 |
|
| $ | 19,603 |
|
| $ | 19,617 |
|
| $ | 19,421 |
|
| $ | 20,006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net Income Basic | $ | 0.27 |
|
| $ | 0.21 |
|
| $ | 0.16 |
|
| $ | 0.20 |
|
| $ | 0.18 |
|
| $ | 0.22 |
|
| $ | 0.10 |
|
| $ | 0.16 |
|
| Net Income Diluted |
| 0.27 |
|
|
| 0.21 |
|
|
| 0.16 |
|
|
| 0.20 |
|
|
| 0.17 |
|
|
| 0.22 |
|
|
| 0.10 |
|
|
| 0.16 |
|
| Cash Dividends Declared |
| 0.07 |
|
|
| 0.05 |
|
|
| 0.05 |
|
|
| 0.05 |
|
|
| 0.04 |
|
|
| 0.04 |
|
|
| 0.04 |
|
|
| 0.04 |
|
| Diluted Book Value |
| 16.73 |
|
|
| 16.54 |
|
|
| 16.38 |
|
|
| 16.23 |
|
|
| 16.39 |
|
|
| 16.31 |
|
|
| 16.04 |
|
|
| 15.93 |
|
| Market Price: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| High |
| 24.58 |
|
|
| 22.39 |
|
|
| 21.79 |
|
|
| 23.15 |
|
|
| 15.35 |
|
|
| 15.96 |
|
|
| 15.88 |
|
|
| 16.05 |
|
| Low |
| 19.60 |
|
|
| 17.68 |
|
|
| 19.22 |
|
|
| 14.29 |
|
|
| 13.32 |
|
|
| 13.16 |
|
|
| 12.83 |
|
|
| 13.56 |
|
| Close |
| 24.01 |
|
|
| 20.42 |
|
|
| 21.39 |
|
|
| 20.48 |
|
|
| 14.77 |
|
|
| 13.92 |
|
|
| 14.59 |
|
|
| 15.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Average Balances: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Loans, Net | $ | 1,638,578 |
|
| $ | 1,608,629 |
|
| $ | 1,585,561 |
|
| $ | 1,573,264 |
|
| $ | 1,555,889 |
|
| $ | 1,531,777 |
|
| $ | 1,507,508 |
|
| $ | 1,492,521 |
|
| Earning Assets |
| 2,466,287 |
|
|
| 2,502,030 |
|
|
| 2,529,207 |
|
|
| 2,423,388 |
|
|
| 2,417,943 |
|
|
| 2,447,777 |
|
|
| 2,440,718 |
|
|
| 2,353,729 |
|
| Total Assets |
| 2,779,960 |
|
|
| 2,817,479 |
|
|
| 2,845,140 |
|
|
| 2,743,463 |
|
|
| 2,734,465 |
|
|
| 2,767,854 |
|
|
| 2,763,746 |
|
|
| 2,678,214 |
|
| Deposits |
| 2,329,162 |
|
|
| 2,373,423 |
|
|
| 2,407,278 |
|
|
| 2,306,917 |
|
|
| 2,288,741 |
|
|
| 2,276,553 |
|
|
| 2,258,600 |
|
|
| 2,174,718 |
|
| Shareowners’ Equity |
| 285,296 |
|
|
| 281,661 |
|
|
| 278,489 |
|
|
| 278,943 |
|
|
| 277,407 |
|
|
| 279,532 |
|
|
| 277,464 |
|
|
| 275,893 |
|
| Common Equivalent Average Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Basic |
| 16,965 |
|
|
| 16,955 |
|
|
| 16,919 |
|
|
| 16,809 |
|
|
| 16,804 |
|
|
| 17,144 |
|
|
| 17,202 |
|
|
| 17,145 |
|
| Diluted |
| 17,044 |
|
|
| 17,016 |
|
|
| 16,944 |
|
|
| 16,913 |
|
|
| 16,871 |
|
|
| 17,196 |
|
|
| 17,235 |
|
|
| 17,214 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Return on Average Assets |
| 0.65 | % |
|
| 0.51 | % |
|
| 0.39 | % |
|
| 0.48 | % |
|
| 0.42 | % |
|
| 0.57 | % |
|
| 0.24 | % |
|
| 0.39 | % |
| Return on Average Equity |
| 6.33 |
|
|
| 5.07 |
|
|
| 4.00 |
|
|
| 4.70 |
|
|
| 4.12 |
|
|
| 5.65 |
|
|
| 2.39 |
|
|
| 3.74 |
|
| Net Interest Margin (FTE) |
| 3.48 |
|
|
| 3.33 |
|
|
| 3.21 |
|
|
| 3.34 |
|
|
| 3.23 |
|
|
| 3.22 |
|
|
| 3.20 |
|
|
| 3.37 |
|
| Noninterest Income as % of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Revenue |
| 37.94 |
|
|
| 39.05 |
|
|
| 39.19 |
|
|
| 38.91 |
|
|
| 40.24 |
|
|
| 43.99 |
|
|
| 39.76 |
|
|
| 40.05 |
|
| Efficiency Ratio |
| 77.21 |
|
|
| 82.28 |
|
|
| 85.33 |
|
|
| 83.23 |
|
|
| 85.92 |
|
|
| 82.40 |
|
|
| 90.13 |
|
|
| 85.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Allowance for Loan Losses | $ | 13,339 |
|
| $ | 13,242 |
|
| $ | 13,335 |
|
| $ | 13,431 |
|
| $ | 13,744 |
|
| $ | 13,677 |
|
| $ | 13,613 |
|
| $ | 13,953 |
|
| Allowance for Loan Losses to Loans | 0.82 | % |
|
| 0.81 | % |
|
| 0.84 | % |
|
| 0.86 | % |
|
| 0.88 | % |
|
| 0.89 | % |
|
| 0.90 | % |
|
| 0.93 | % | |
| Nonperforming Assets (“NPAs”) | $ | 12,545 |
|
| $ | 15,934 |
|
| $ | 17,799 |
|
| $ | 19,171 |
|
| $ | 21,352 |
|
| $ | 22,836 |
|
| $ | 26,499 |
|
| $ | 29,595 |
|
| NPAs to Total Assets |
| 0.45 | % |
|
| 0.57 | % |
|
| 0.61 | % |
|
| 0.67 | % |
|
| 0.78 | % |
|
| 0.83 | % |
|
| 0.95 | % |
|
| 1.06 | % |
| NPAs to Loans plus OREO |
| 0.76 |
|
|
| 0.97 |
|
|
| 1.11 |
|
|
| 1.21 |
|
|
| 1.35 |
|
|
| 1.48 |
|
|
| 1.73 |
|
|
| 1.94 |
|
| Allowance to Non-Performing Loans | 203.39 |
|
|
| 166.23 |
|
|
| 160.70 |
|
|
| 157.40 |
|
|
| 159.56 |
|
|
| 166.50 |
|
|
| 150.44 |
|
|
| 135.40 |
| |
| Net Charge-Offs to Average Loans | 0.10 |
|
|
| 0.17 |
|
|
| 0.10 |
|
|
| 0.20 |
|
|
| (0.02) |
|
|
| (0.04) |
|
|
| 0.21 |
|
|
| 0.34 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Tier 1 Capital |
| 16.19 | % |
|
| 15.58 | % |
|
| 15.68 | % |
|
| 15.51 | % |
|
| 15.48 | % |
|
| 15.63 | % |
|
| 16.39 | % |
|
| 16.42 | % |
| Total Capital |
| 16.96 |
|
|
| 16.32 |
|
|
| 16.44 |
|
|
| 16.28 |
|
|
| 16.28 |
|
|
| 16.44 |
|
|
| 17.20 |
|
|
| 17.25 |
|
| Common Equity Tier 1 |
| 13.26 |
|
|
| 12.72 |
|
|
| 12.77 |
|
|
| 12.61 |
|
|
| 12.55 |
|
|
| 12.65 |
|
|
| 12.82 |
|
|
| 12.84 |
|
| Leverage |
| 10.48 |
|
|
| 10.20 |
|
|
| 9.95 |
|
|
| 10.23 |
|
|
| 10.12 |
|
|
| 9.98 |
|
|
| 10.34 |
|
|
| 10.65 |
|
| Tangible Common Equity(1) |
| 7.41 |
|
|
| 7.21 |
|
|
| 6.88 |
|
|
| 6.90 |
|
|
| 7.19 |
|
|
| 7.08 |
|
|
| 7.09 |
|
|
| 6.99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1)Non-GAAP financial measure. See non-GAAP reconciliation on page 29. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
| (2)Includes $2.5 million gain on partial retirement of trust preferred securities in second quarter, 2016. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30
A summary overview of our financial performance is provided below.
·
·Tax equivalent2022.
·Provision for loan losses was $0.5 million for the third quarter of 2017 compared to $0.6 million for the second quarter of 2017 2023 was primarily attributable to loan growthand no provision for the third quarter of 2016. an increase in net loan charge-offs.For the first
·1.05% at June 30, 2023, and 0.98% at December 31,
·a $1.7 million increase in other income.
of a banking office.
·
·Average loans increased by $29.9 million, or 1.9%, over the second quarter of 2017,our institutional and $65.3 million, or 4.2%, over the fourth quarter of 2016. Increases over both prior periods reflected growth in all loan types except commercial loans and home equity loans.
·Nonperforming assets totaled $12.5 million at September 30, 2017, a decrease of $3.4 million, or 21%, from June 30, 2017 and $6.6 million, or 35%, from December 31, 2016. Nonperforming assets represented 0.45% of total assets at September 30, 2017 compared to 0.57% at June 30, 2017 and 0.67% at December 31, 2016.
·municipal clients.
31
Net Income
For the third quarter of 2017, we realized net income of $4.6 million, or $0.27 per diluted share, compared to net income of $3.6 million, or $0.21 per diluted share for the second quarter of 2017, and net income of $2.9 million, or $0.17 per diluted share, for the third quarter of 2016. For the first nine months of 2017, we realized net income of $10.9 million, or $0.64 per diluted share, compared to net income of $8.4 million, or $0.49 per diluted share for the same period in 2016.
Compared to the second quarter of 2017, the increase in earnings reflected higher net interest income of $0.8 million,
Compared to the third quarter of 2016, performance reflected higher net interest income of $1.9 million and a $1.3 million decrease in noninterest expense, partially offset by higher income taxes of $1.1 million and a $0.4 million increase in the loan loss provision.
The increase in earnings for the first nine months of 2017 versus the comparable period in 2016 was attributable to higher net interest income of $3.6 million and a $3.1 million reduction in noninterest expense, partially offset by lower noninterest income of $2.0 million, a $1.2 million increase in income taxes, and a $1.0 million increase in the loan loss provision.
A condensed earnings summary of each major componentour results of our financial performance is provided below:
|
| Three Months Ended |
| Nine Months Ended | |||||||||||
|
| September 30, |
| June 30, |
| September 30, |
| September 30, |
| September 30, | |||||
(Dollars in Thousands, except per share data) |
| 2017 |
| 2017 |
| 2016 |
| 2017 |
| 2016 | |||||
Interest Income |
| $ | 22,341 |
| $ | 21,422 |
| $ | 20,104 |
| $ | 64,303 |
| $ | 60,322 |
Taxable Equivalent Adjustments |
|
| 334 |
|
| 303 |
|
| 283 |
|
| 907 |
|
| 735 |
Total Interest Income (FTE) |
|
| 22,675 |
|
| 21,725 |
|
| 20,387 |
|
| 65,210 |
|
| 61,057 |
Interest Expense |
|
| 1,080 |
|
| 926 |
|
| 784 |
|
| 2,810 |
|
| 2,416 |
Net Interest Income (FTE) |
|
| 21,595 |
|
| 20,799 |
|
| 19,603 |
|
| 62,400 |
|
| 58,641 |
Provision for Loan Losses |
|
| 490 |
|
| 589 |
|
| - |
|
| 1,389 |
|
| 355 |
Taxable Equivalent Adjustments |
|
| 334 |
|
| 303 |
|
| 283 |
|
| 907 |
|
| 735 |
Net Interest Income After Provision for Loan Losses |
|
| 20,771 |
|
| 19,907 |
|
| 19,320 |
|
| 60,104 |
|
| 57,551 |
Noninterest Income |
|
| 12,996 |
|
| 13,135 |
|
| 13,011 |
|
| 38,849 |
|
| 40,903 |
Noninterest Expense |
|
| 26,707 |
|
| 27,921 |
|
| 28,022 |
|
| 82,550 |
|
| 85,654 |
Income Before Income Taxes |
|
| 7,060 |
|
| 5,121 |
|
| 4,309 |
|
| 16,403 |
|
| 12,800 |
Income Tax Expense |
|
| 2,505 |
|
| 1,560 |
|
| 1,436 |
|
| 5,543 |
|
| 4,350 |
Net Income |
| $ | 4,555 |
| $ | 3,561 |
| $ | 2,873 |
| $ | 10,860 |
| $ | 8,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Net Income Per Share |
| $ | 0.27 |
| $ | 0.21 |
| $ | 0.18 |
| $ | 0.64 |
| $ | 0.50 |
Diluted Net Income Per Share |
| $ | 0.27 |
| $ | 0.21 |
| $ | 0.17 |
| $ | 0.64 |
| $ | 0.49 |
- a discussion of the various components are discussed
(FTE)
Tax equivalent
32
The overnight funds rate has increased four times since December 2015, positively affecting our net interest income due to favorable repricingmajority of our variable and adjustable rate earning assets. Although these rate increases have also resulted in higher rates paid on our negotiated rate deposit products, we continue to monitor and manage our overall cost of funds, which was 17 basis points in the third quarter of 2017, and 15 basis points for the first nine months of 2017. Despite highly competitive loan pricing across most markets, the yield of the overall loan portfolio increased quarter-over-quarter.
We continue to maintain short duration portfolios on both sides of the balance sheet and believe we are well positioned to respond to changing market conditions.
Provision for Loan Losses
The
Charge-off activity for the respective periods is set forth below: | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended |
| Nine Months Ended | ||||||||||||||||
|
| September 30, |
| June 30, |
| September 30, |
| September 30, |
| September 30, | ||||||||||
(Dollars in Thousands, except per share data) | 2017 |
| 2017 |
| 2016 |
| 2017 |
| 2016 | |||||||||||
CHARGE-OFFS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Commercial, Financial and Agricultural | $ | 276 |
|
| $ | 324 |
|
| $ | 143 |
|
| $ | 693 |
|
| $ | 484 |
| |
Real Estate - Construction |
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
| |
Real Estate - Commercial Mortgage |
| 94 |
|
|
| 478 |
|
|
| 5 |
|
|
| 643 |
|
|
| 279 |
| |
Real Estate - Residential |
| 125 |
|
|
| 44 |
|
|
| 96 |
|
|
| 285 |
|
|
| 779 |
| |
Real Estate - Home Equity |
| 50 |
|
|
| - |
|
|
| 51 |
|
|
| 142 |
|
|
| 412 |
| |
Consumer |
| 455 |
|
|
| 537 |
|
|
| 479 |
|
|
| 1,616 |
|
|
| 1,356 |
| |
Total Charge-offs | $ | 1,000 |
|
| $ | 1,383 |
|
| $ | 774 |
|
| $ | 3,379 |
|
| $ | 3,310 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
RECOVERIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Commercial, Financial and Agricultural | $ | 79 |
|
| $ | 40 |
|
| $ | 199 |
|
| $ | 200 |
|
| $ | 287 |
| |
Real Estate - Construction |
| 50 |
|
|
| - |
|
|
| - |
|
|
| 50 |
|
|
| - |
| |
Real Estate - Commercial Mortgage |
| 69 |
|
|
| 58 |
|
|
| 45 |
|
|
| 150 |
|
|
| 363 |
| |
Real Estate - Residential |
| 60 |
|
|
| 202 |
|
|
| 139 |
|
|
| 475 |
|
|
| 954 |
| |
Real Estate - Home Equity |
| 84 |
|
|
| 39 |
|
|
| 237 |
|
|
| 152 |
|
|
| 377 |
| |
Consumer |
| 265 |
|
|
| 362 |
|
|
| 221 |
|
|
| 871 |
|
|
| 765 |
| |
Total Recoveries | $ | 607 |
|
| $ | 701 |
|
| $ | 841 |
|
| $ | 1,898 |
|
| $ | 2,746 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Recoveries) Charge-offs | $ | 393 |
|
| $ | 682 |
|
| $ | (67) |
|
| $ | 1,481 |
|
| $ | 564 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Recoveries) Charge-offs (Annualized) as a |
| 0.10 | % |
|
| 0.17 | % |
|
| (0.02) | % |
|
| 0.12 | % |
|
| 0.05 | % | |
| percent of Average Loans Outstanding, Net of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unearned Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33
Noninterest Income
2023.
The decrease in mortgage banking2022.
|
| Three Months Ended |
| Nine Months Ended | |||||||||||
|
| September 30, |
| June 30, |
| September 30, |
| September 30, |
| September 30, | |||||
(Dollars in Thousands) | 2017 |
| 2017 |
| 2016 |
| 2017 |
| 2016 | ||||||
Deposit Fees | $ | 5,153 |
| $ | 5,052 |
| $ | 5,373 |
| $ | 15,295 |
| $ | 16,094 | |
Bank Card Fees |
| 2,688 |
|
| 2,870 |
|
| 2,759 |
|
| 8,361 |
|
| 8,467 | |
Wealth Management Fees |
| 2,197 |
|
| 2,073 |
|
| 1,774 |
|
| 6,112 |
|
| 5,256 | |
Mortgage Banking Fees |
| 1,480 |
|
| 1,556 |
|
| 1,503 |
|
| 4,344 |
|
| 3,800 | |
Other |
| 1,478 |
|
| 1,584 |
|
| 1,602 |
|
| 4,737 |
|
| 7,286 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Noninterest Income | $ | 12,996 |
| $ | 13,135 |
| $ | 13,011 |
| $ | 38,849 |
| $ | 40,903 |
Wealth Management FeesConsolidated Financial Statements.
Mortgage Banking Fees. Mortgage banking fees totaled $1.5 million for the third quarter of 2017, a decrease of $0.1 million, or 4.9%47.1%, from the second quarter
Other. Other income totaled $1.5 million for the third quarter of 2017, a decrease of $0.1 million, or 6.7%, from the second quarter of 20172023 and a decrease of $0.1 million, or 7.7%5.6%, from the third quarterof 2016. 2022.For the first nine months of 2017,2023, other income decreased $2.5
34
The table below reflects the major components of noninterest expense. Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, September 30, (Dollars in Thousands) 2017 2017 2016 2017 2016 Salaries $ 11,793 $ 11,560 $ 11,796 $ 35,118 $ 35,562 Associate Benefits 4,556 4,732 4,197 14,019 12,723 Total Compensation 16,349 16,292 15,993 49,137 48,285 Premises 2,205 2,217 2,269 6,626 6,852 Equipment 2,296 2,338 2,465 6,811 6,925 Total Occupancy 4,501 4,555 4,734 13,437 13,777 Legal Fees 405 537 452 1,428 1,788 Professional Fees 816 885 896 2,605 2,649 Processing Services 1,567 1,700 1,747 4,913 5,097 Advertising 296 531 441 1,293 1,310 Travel and Entertainment 194 222 230 590 653 Printing and Supplies 115 188 160 478 554 Telephone 502 527 699 1,858 1,637 Postage 185 185 201 586 685 Insurance - Other 409 410 397 1,221 1,658 Other Real Estate Owned, net (118) 315 821 780 3,306 Miscellaneous 1,486 1,574 1,251 4,224 4,255 Total Other 5,857 7,074 7,295 19,976 23,592 Total Noninterest Expense $ 26,707 $ 27,921 $ 28,022 $ 82,550 $ 85,65420172023 totaled $26.7$39.1 million a decrease of $1.2comparedto $40.3 million or 4.3%, fromfor the second quarter of 2017,2023 and a decrease of $1.3or 4.7%, fromfor the third quarter of 2016. The2022.Compared to the second quarter of 2023, the $1.2 million decrease from both prior periods was primarily dueto alower OREO increases in other(primarily related to gains on sale)of $0.5million and variousoccupancy expense of $0.8 million.The increase in other expenses (advertising, legal, professional, expense was largely driven by a $0.7 millionprocessing). the increase in occupancy reflected the addition of four new2017, 2023,$82.6$117.1 million a decrease of $3.1comparedto $112.4 million or 3.6%, fromfor the same period of 2016 2022 with the $4.7 millionincrease$2.5$1.8 million (all categories: gain/loss onrelated to a gain from the sale carrying costs, and valuation adjustments), occupancy expense of $0.3 million, and various other expenses totaling $0.9 million (primarily legal and FDIC insurance), partially offset by higher compensation expense $0.8 million (stock compensation). Expense management is an important partaour culture and strategic focus as we continue to review and evaluate opportunities to optimize our operations, reduce operating costs, and manage our discretionary expenses.noninterest expense.
Occupancy. Occupancy expense (including premises and equipment) totaled $4.5$9.1 million for the third quarter of 2017, a decrease of $0.12023 compared to $10.0 million or 1.2%, fromfor the second quarter of 20172023 and a decrease of $0.2
35
Other. Other noninterest expense totaled $5.9 million forCompared to the third quarter of 2017, a decrease of $1.22022, the
non
-recurring consulting expense.Income Taxes
We realized income2022.The increase in our effective tax expense of $2.5 million (35% effective rate)rate for the third quarter of 2017 compared2023 was primarily
20-21% for 2023.
Investment Securities
Inaverage earningassets for the third quarter of 2017, our average investment portfolio decreased $5.6 million, or 0.8%, from2023
run-off to overnight funds.
36
2022.
The duration of our investment portfolio at September
| Less Than 12 months |
| 12 months or Longer |
| Total | ||||||||||||
|
|
| Market | Unrealized |
|
|
| Market | Unrealized |
|
|
| Market | Unrealized | |||
(Dollars in Thousands) | Count |
| Value | Losses |
| Count |
| Value | Losses |
| Count |
| Value | Losses | |||
GNMA | 58 | $ | 47,159 | $ | 579 |
| 13 | $ | 4,373 | $ | 63 |
| 71 | $ | 51,532 | $ | 642 |
UST | 56 |
| 274,893 |
| 942 |
| 2 |
| 9,981 |
| 110 |
| 58 |
| 284,874 |
| 1,052 |
SBA | 24 |
| 9,618 |
| 70 |
| 8 |
| 4,657 |
| 34 |
| 32 |
| 14,275 |
| 104 |
FHLB and FFCB | 18 |
| 25,158 |
| 56 |
| 6 |
| 13,196 |
| 130 |
| 24 |
| 38,354 |
| 186 |
States and Political Subdivisions | 67 |
| 23,534 |
| 24 |
| 14 |
| 5,129 |
| 32 |
| 81 |
| 28,663 |
| 56 |
Total | 223 | $ | 380,362 | $ | 1,671 |
| 43 | $ | 37,336 | $ | 369 |
| 266 | $ | 417,698 | $ | 2,040 |
The average maturity of our total portfolio atAt September 30, 2017 was 1.87 years compared to 1.86 years 2023,
U.S. Treasury bonds held were AAA
HFI
We standards, or taking on inordinate interest rate risk,
Nonperforming Assets
quarter.
Nonperforming assets (nonaccrual loans and37
(Dollars in Thousands) | September 30, 2017 |
| June 30, 2017 |
| December 31, 2016 | |||||||
Nonaccruing Loans: |
|
|
|
|
|
|
|
|
|
|
| |
| Commercial, Financial and Agricultural | $ | 41 |
|
| $ | 455 |
|
| $ | 468 |
|
| Real Estate - Construction |
| 362 |
|
|
| 363 |
|
|
| 311 |
|
| Real Estate - Commercial Mortgage |
| 2,425 |
|
|
| 2,984 |
|
|
| 3,410 |
|
| Real Estate - Residential |
| 2,350 |
|
|
| 2,485 |
|
|
| 2,330 |
|
| Real Estate - Home Equity |
| 1,108 |
|
|
| 1,496 |
|
|
| 1,774 |
|
| Consumer |
| 272 |
|
|
| 183 |
|
|
| 240 |
|
Total Nonperforming Loans (“NPLs”)(1) | $ | 6,558 |
|
| $ | 7,966 |
|
| $ | 8,533 |
| |
Other Real Estate Owned |
| 5,987 |
|
|
| 7,968 |
|
|
| 10,638 |
| |
Total Nonperforming Assets (“NPAs”) | $ | 12,545 |
|
| $ | 15,934 |
|
| $ | 19,171 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Past Due Loans 30 – 89 Days | $ | 5,687 |
|
| $ | 3,789 |
|
| $ | 6,438 |
| |
Performing Troubled Debt Restructurings | $ | 33,427 |
|
| $ | 35,436 |
|
| $ | 38,233 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Loans/Loans |
| 0.40 | % |
|
| 0.49 | % |
|
| 0.54 | % | |
Nonperforming Assets/Total Assets |
| 0.45 |
|
|
| 0.57 |
|
|
| 0.67 |
| |
Nonperforming Assets/Loans Plus OREO |
| 0.76 |
|
|
| 0.97 |
|
|
| 1.21 |
| |
Allowance/Nonperforming Loans |
| 203.39 | % |
|
| 166.23 | % |
|
| 157.40 | % |
(1)Nonperforming TDRs are includedThe increase in the NPL totals.
Activity within our nonperforming asset portfolio is provided in the table below. | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||||||
(Dollars in Thousands) | 2017 |
| 2016 |
| 2017 |
| 2016 | |||||
NPA Beginning Balance: | $ | 15,934 |
| $ | 22,836 |
| $ | 19,171 |
| $ | 29,595 | |
Change in Nonaccrual Loans: |
|
|
|
|
|
|
|
|
|
|
| |
Beginning Balance |
| 7,966 |
|
| 8,214 |
|
| 8,533 |
|
| 10,305 | |
| Additions |
| 2,440 |
|
| 2,844 |
|
| 8,555 |
|
| 9,120 |
| Charge-Offs |
| (644) |
|
| (414) |
|
| (2,246) |
|
| (2,053) |
| Transferred to OREO |
| (261) |
|
| (832) |
|
| (1,043) |
|
| (3,011) |
| Paid Off/Payments |
| (1,534) |
|
| (529) |
|
| (2,927) |
|
| (1,892) |
| Restored to Accrual |
| (1,409) |
|
| (669) |
|
| (4,314) |
|
| (3,855) |
Ending Balance |
| 6,558 |
|
| 8,614 |
|
| 6,558 |
|
| 8,614 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in OREO: |
|
|
|
|
|
|
|
|
|
|
| |
| Beginning Balance |
| 7,968 |
|
| 14,622 |
|
| 10,638 |
|
| 19,290 |
| Additions |
| 339 |
|
| 890 |
|
| 2,024 |
|
| 3,309 |
| Valuation Write-downs |
| (350) |
|
| (397) |
|
| (1,118) |
|
| (1,910) |
| Sales |
| (1,970) |
|
| (2,377) |
|
| (5,291) |
|
| (7,951) |
| Other |
| - |
|
| - |
|
| (266) |
|
| - |
Ending Balance |
| 5,987 |
|
| 12,738 |
|
| 5,987 |
|
| 12,738 | |
NPA Net Change |
| (3,389) |
|
| (1,484) |
|
| (6,626) |
|
| (8,243) | |
NPA Ending Balance | $ | 12,545 |
| $ | 21,352 |
| $ | 12,545 |
| $ | 21,352 |
38
Activity within our TDR portfolio is provided in the table below. | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||||||
(Dollars in Thousands) | 2017 |
| 2016 |
| 2017 |
| 2016 | |||||
TDR Beginning Balance: | $ | 37,917 |
| $ | 37,539 |
| $ | 39,976 |
| $ | 38,321 | |
| Additions |
| 341 |
|
| 17 |
|
| 643 |
|
| 1,128 |
| Charge-Offs |
| (5) |
|
| (10) |
|
| (458) |
|
| (10) |
| Paid Off/Payments |
| (2,416) |
|
| (519) |
|
| (4,284) |
|
| (2,001) |
| Transferred to OREO |
| (85) |
|
| (179) |
|
| (125) |
|
| (590) |
TDR Ending Balance(1) | $ | 35,752 |
| $ | 36,848 |
| $ | 35,752 |
| $ | 36,848 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes performing and nonaccrual TDR loan balances. |
|
|
|
|
|
|
|
|
|
LoanCredit LossesWe maintain an allowance for loan losses at a level that management believes to be sufficient to provide for probable losses inherent in the loan portfolio as of the balance sheet date. Credit losses arise from borrowers’ inability or unwillingness to repay, and from other risks inherent in the lending process, including collateral risk, operations risk, concentration risk and economic risk. All related risks of lending are considered when assessing the adequacy of the loan loss reserve. loancredit losses is established through a valuation account that is deducted from theloans’ amortized cost basis to present the net amountcharged to expense. which is reported incollectionthe uncollectability of a loan balance is confirmed.Expected recoveries do not exceed the principalaggregate of amountsunlikely. Theprovided through the credit loss provision, but recorded as a separateliability included in other liabilities.forbalance using relevant available information,from internal and external sources relating to pastlosses is based on management's judgmentdefault and loss experience provides the basis foroverall loan quality. This is a significant estimate based on a detailed analysisexpected credit losses.Adjustments to historical loss information incorporate management’sview of the loan portfolio. The balance cancurrentwill change based on changes in the assessment of the loan portfolio's overall credit quality.We evaluate the adequacy offorecasts.
The allowance for loan losses was $13.3 HFI loans totaled $29.1
other liabilities.
Deposit levels remain strong, as the seasonal decline in public NOW accounts was partially offset by increases in all other non-maturity deposits during the quarter. Although rates remain2022.
currentrising rate environment.
39
Interest Rate Risk Management.
We test our balance sheet using varying interest rate shock scenarios to analyze our interest rate risk. Average interest rates are shocked by plus or minus 100, 200, 300, and 400 basis points (“bp”), although we may elect not to use particular scenarios that we determined are impractical in a current rate environment. It is management’s goal to structure the balance sheetstatement of financial condition so that net interest earnings at risk over
We augment our interest rate shock analysis with alternative external interest rate scenariosmarket conditions on a quarterly continuing
Analysis.
40
ESTIMATED CHANGES IN NET INTEREST INCOME (1) |
|
| |||
|
|
|
|
|
|
Percentage Change (12-month shock) | +400 bp | +300 bp | +200 bp | +100 bp | -100 bp |
|
|
|
|
|
|
Policy Limit | -15.0% | -12.5% | -10.0% | -7.5% | -7.5% |
September 30, 2017 | 14.8% | 10.9% | 6.9% | 3.3% | -8.1% |
June 30,2017 | 12.5% | 9.0% | 5.6% | 2.7% | -8.7% |
|
|
|
|
|
|
Percentage Change (24-month shock) | +400 bp | +300 bp | +200 bp | +100 bp | -100 bp |
|
|
|
|
|
|
Policy Limit | -17.5% | -15.0% | -12.5% | -10.0% | -10.0% |
September 30, 2017 | 41.4% | 31.0% | 20.6% | 10.9% | -13.0% |
June 30,2017 | 41.3% | 30.9% | 20.7% | 11.3% | -13.2% |
All measures of net interest income at risk are within our prescribed policy limits with the exception of an instantaneous rate shock of -100 bp over both a 12-month and 24-month period, which were -8.1% and -13.0% compared to limits of -7.50% and -10.0%, respectively. These metrics remain out of compliance rates down 400 bps scenario
rate.
ESTIMATED CHANGES IN ECONOMIC VALUE OF EQUITY (1) |
|
| |||
|
|
|
|
|
|
Changes in Interest Rates | +400 bp | +300 bp | +200 bp | +100 bp | -100 bp |
|
|
|
|
|
|
Policy Limit | -30.0% | -25.0% | -20.0% | -15.0% | -15.0% |
September 30, 2017 | 34.4% | 27.3% | 19.2% | 10.6% | -21.7% |
June 30,2017 | 35.1% | 27.8% | 19.6% | 10.8% | -23.7% |
(1)Down 200, 300, and 400 bp scenarios have been excluded due to the historically low interest rate environment.
41
LIQUIDITY AND CAPITALRESOURCES
on-
Our average overnight funds position (defined as funds sold plus interest bearing deposits with other banks less funds purchased) was $140.7 million during the third quarter of 2017 compared toBank maintained an average net overnight funds (deposits with banks plus
At September 30, 2017, advances from the FHLB
these warehouse
42
On April 12, 2016,During the second quarter of 2020, we retired $10entered into a derivative cash
We utilized internal resources and a $3.75 million draw on a short-term borrowing facility to fund the repurchase.
LateNote 5 – Derivatives in the first quarter 2017,Consolidated Financial
Capital
Basel III capital standards.
During the first nine months2023 compared to 7.43% and 6.65% at June 30,
At September 30, 2017, our common stock had a book value of $16.73 per diluted share compared to $16.54 at June 30, 2017 and $16.23 at December 31, 2016. Book value is impacted by changes in the amount of our net unrealized gain or loss on investment securities available-for-sale and changes to the amountrecording of our unfunded pensionliability both of which impactthrough other comprehensive income. income in
In February 2014,is subject to long
2022 Form 10-K/A “Critical AccountingPolicies and
As of
43
We have identified
accounting for (i) the allowance for44
TABLE I |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCES & INTEREST RATES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
| 2017 |
| 2016 |
| 2017 |
|
| 2016 | |||||||||||||||||||||||||||
| Average |
|
|
|
| Average |
| Average |
|
|
|
| Average |
| Average |
|
|
|
| Average |
|
| Average |
|
|
|
| Average | |||||||
(Dollars in Thousands) | Balances |
| Interest |
| Rate |
| Balances |
| Interest |
| Rate |
| Balances |
| Interest |
| Rate |
|
| Balances |
| Interest |
| Rate | |||||||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans(1)(2) | $ | 1,638,578 |
| $ | 19,672 |
| 4.76 | % |
| $ | 1,555,889 |
| $ | 18,216 |
| 4.66 | % |
| $ | 1,611,117 |
| $ | 56,689 |
| 4.70 | % |
| $ | 1,531,813 |
| $ | 54,590 |
| 4.76 | % |
Taxable Securities(2) |
| 588,518 |
|
| 2,150 |
| 1.45 |
|
|
| 606,606 |
|
| 1,632 |
| 1.07 |
|
|
| 593,579 |
|
| 5,832 |
| 1.31 |
|
|
| 576,790 |
|
| 4,591 |
| 1.03 |
|
Tax-Exempt Securities |
| 98,463 |
|
| 407 |
| 1.65 |
|
|
| 89,241 |
|
| 327 |
| 1.47 |
|
|
| 99,059 |
|
| 1,217 |
| 1.64 |
|
|
| 91,399 |
|
| 984 |
| 1.44 |
|
Funds Sold |
| 140,728 |
|
| 446 |
| 1.26 |
|
|
| 166,207 |
|
| 212 |
| 0.51 |
|
|
| 195,189 |
|
| 1,472 |
| 1.01 |
|
|
| 235,414 |
|
| 892 |
| 0.51 |
|
Total Earning Assets |
| 2,466,287 |
|
| 22,675 |
| 3.65 | % |
|
| 2,417,943 |
|
| 20,387 |
| 3.35 | % |
|
| 2,498,944 |
|
| 65,210 |
| 3.49 | % |
|
| 2,435,416 |
|
| 61,057 |
| 3.35 | % |
Cash & Due From Banks |
| 51,880 |
|
|
|
|
|
|
|
| 45,139 |
|
|
|
|
|
|
|
| 51,043 |
|
|
|
|
|
|
|
| 46,521 |
|
|
|
|
|
|
Allowance For Loan Losses |
| (13,542) |
|
|
|
|
|
|
|
| (14,052) |
|
|
|
|
|
|
|
| (13,547) |
|
|
|
|
|
|
|
| (14,102) |
|
|
|
|
|
|
Other Assets |
| 275,335 |
|
|
|
|
|
|
|
| 285,435 |
|
|
|
|
|
|
|
| 277,514 |
|
|
|
|
|
|
|
| 287,444 |
|
|
|
|
|
|
TOTAL ASSETS | $ | 2,779,960 |
|
|
|
|
|
|
| $ | 2,734,465 |
|
|
|
|
|
|
| $ | 2,813,954 |
|
|
|
|
|
|
| $ | 2,755,279 |
|
|
|
|
|
|
|
|
|
|
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Liabilities: |
|
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|
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|
|
|
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|
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|
NOW Accounts | $ | 755,620 |
| $ | 339 |
| 0.18 | % |
| $ | 774,899 |
| $ | 78 |
| 0.04 | % |
| $ | 813,858 |
| $ | 694 |
| 0.11 | % |
| $ | 778,840 |
| $ | 214 |
| 0.04 | % |
Money Market Accounts |
| 262,486 |
|
| 80 |
| 0.12 |
|
|
| 258,183 |
|
| 30 |
| 0.05 |
|
|
| 261,118 |
|
| 172 |
| 0.09 |
|
|
| 255,885 |
|
| 89 |
| 0.05 |
|
Savings Accounts |
| 327,675 |
|
| 40 |
| 0.05 |
|
|
| 297,172 |
|
| 37 |
| 0.05 |
|
|
| 320,634 |
|
| 118 |
| 0.05 |
|
|
| 288,740 |
|
| 107 |
| 0.05 |
|
Other Time Deposits |
| 148,652 |
|
| 71 |
| 0.19 |
|
|
| 165,324 |
|
| 78 |
| 0.19 |
|
|
| 153,215 |
|
| 215 |
| 0.19 |
|
|
| 171,052 |
|
| 245 |
| 0.19 |
|
Total Interest Bearing Deposits |
| 1,494,433 |
|
| 530 |
| 0.14 |
|
|
| 1,495,578 |
|
| 223 |
| 0.06 |
|
|
| 1,548,825 |
|
| 1,199 |
| 0.11 |
|
|
| 1,494,517 |
|
| 655 |
| 0.06 |
|
Short-Term Borrowings |
| 9,920 |
|
| 15 |
| 0.59 |
|
|
| 12,162 |
|
| 43 |
| 1.39 |
|
|
| 10,552 |
|
| 77 |
| 0.97 |
|
|
| 44,147 |
|
| 91 |
| 0.28 |
|
Subordinated Notes Payable |
| 52,887 |
|
| 420 |
| 3.11 |
|
|
| 52,887 |
|
| 341 |
| 2.52 |
|
|
| 52,887 |
|
| 1,203 |
| 3.00 |
|
|
| 56,683 |
|
| 1,071 |
| 2.48 |
|
Other Long-Term Borrowings |
| 15,427 |
|
| 115 |
| 2.95 |
|
|
| 23,629 |
|
| 177 |
| 2.98 |
|
|
| 15,324 |
|
| 331 |
| 2.89 |
|
|
| 26,031 |
|
| 599 |
| 3.07 |
|
Total Interest Bearing Liabilities |
| 1,572,667 |
|
| 1,080 |
| 0.28 | % |
|
| 1,584,256 |
|
| 784 |
| 0.20 | % |
|
| 1,627,588 |
|
| 2,810 |
| 0.24 | % |
|
| 1,621,378 |
|
| 2,416 |
| 0.20 | % |
Noninterest Bearing Deposits |
| 834,729 |
|
|
|
|
|
|
|
| 793,163 |
|
|
|
|
|
|
|
| 820,843 |
|
|
|
|
|
|
|
| 780,167 |
|
|
|
|
|
|
Other Liabilities |
| 87,268 |
|
|
|
|
|
|
|
| 79,639 |
|
|
|
|
|
|
|
| 83,683 |
|
|
|
|
|
|
|
| 75,603 |
|
|
|
|
|
|
TOTAL LIABILITIES |
| 2,494,664 |
|
|
|
|
|
|
|
| 2,457,058 |
|
|
|
|
|
|
|
| 2,532,114 |
|
|
|
|
|
|
|
| 2,477,148 |
|
|
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|
TOTAL SHAREOWNERS’ EQUITY |
| 285,296 |
|
|
|
|
|
|
|
| 277,407 |
|
|
|
|
|
|
|
| 281,840 |
|
|
|
|
|
|
|
| 278,131 |
|
|
|
|
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|
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|
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|
TOTAL LIABILITIES AND |
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|
SHAREOWNERS’ EQUITY | $ | 2,779,960 |
|
|
|
|
|
|
| $ | 2,734,465 |
|
|
|
|
|
|
| $ | 2,813,954 |
|
|
|
|
|
|
| $ | 2,755,279 |
|
|
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|
|
|
Interest Rate Spread |
|
|
|
|
|
| 3.37 | % |
|
|
|
|
|
|
| 3.15 | % |
|
|
|
|
|
|
| 3.25 | % |
|
|
|
|
|
|
| 3.15 | % |
Net Interest Income |
|
|
| $ | 21,595 |
|
|
|
|
|
|
| $ | 19,603 |
|
|
|
|
|
|
| $ | 62,400 |
|
|
|
|
|
|
| $ | 58,641 |
|
|
|
Net Interest Margin(3) |
|
|
|
|
|
| 3.48 | % |
|
|
|
|
|
|
| 3.23 | % |
|
|
|
|
|
|
| 3.34 | % |
|
|
|
|
|
|
| 3.22 | % |
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
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|
|
(1)Average Balances include nonaccrual loans. |
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| ||||||||||
(2)Interest income includes the effects of taxable equivalent adjustments using a 35% tax rate. |
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| ||||||||||
(3)Taxable equivalent net interest income divided by average earnings assets. |
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45
See “Market Risk and Interest Rate Sensitivity” in Management’s Discussion and Analysis of Financial Condition and Results of Operations, above, which is incorporated herein by reference.
2022.
Changes procedureswere ineffective as of September 30,
None.
None.
None.
46
32.2Certification of J. Kimbrough Davis, Executive Vice President and Chief Financial Officer of Capital City Bank Group, Inc., Pursuant to 18 U.S.C. Section 1350.
101.INS XBRL Instance Document
101.SCH XBRL Taxonomy
47
(Registrant)
| |
| |
| |
| |
|
48
ExhibitDescription
101.INS XBRL Instance Document
101.SCH XBRL Taxonomy Extension Schema Document
101.CAL XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB XBRL Taxonomy Extension Label Linkbase Document
101.PRE XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF XBRL Taxonomy Extension Definition Linkbase Document
49