QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Kentucky | 61-1206757 | |
(State or other jurisdiction of incorporation organization) | (I.R.S. Employer Identification No.) | |
2883 Fifth Avenue Huntington, West Virginia | 25702 | |
(Address of principal executive offices) | (Zip Code) | |
Registrant’s telephone number (304) 525-1600 |
Large accelerated filer | Accelerated filer | |
Non-accelerated filer (Do not check if smaller reporting company) | Smaller reporting company | Emerging growth company |
(UNAUDITED) | ||||||||
September 30, | December 31, | |||||||
2017 | 2016 | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 41,831 | $ | 41,443 | ||||
Interest bearing bank balances | 21,681 | 55,720 | ||||||
Federal funds sold | 11,632 | 7,555 | ||||||
Cash and cash equivalents | 75,144 | 104,718 | ||||||
Time deposits with other banks | 2,582 | 2,332 | ||||||
Securities available for sale | 289,203 | 288,607 | ||||||
Loans | 1,055,324 | 1,024,823 | ||||||
Allowance for loan losses | (12,359 | ) | (10,836 | ) | ||||
Net loans | 1,042,965 | 1,013,987 | ||||||
Federal Home Loan Bank stock, at cost | 3,185 | 3,200 | ||||||
Premises and equipment, net | 23,504 | 24,224 | ||||||
Real estate and other property acquired through foreclosure | 11,458 | 12,665 | ||||||
Interest receivable | 4,060 | 3,862 | ||||||
Goodwill | 35,371 | 35,371 | ||||||
Other intangible assets | 3,581 | 4,349 | ||||||
Other assets | 1,622 | 2,878 | ||||||
Total assets | $ | 1,492,675 | $ | 1,496,193 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Deposits | ||||||||
Non-interest bearing | $ | 327,965 | $ | 319,618 | ||||
Time deposits, $250,000 and over | 64,919 | 66,378 | ||||||
Other interest bearing | 876,500 | 893,390 | ||||||
Total deposits | 1,269,384 | 1,279,386 | ||||||
Securities sold under agreements to repurchase | 25,116 | 23,820 | ||||||
Other borrowed funds | 6,000 | 8,859 | ||||||
Subordinated debt | 5,368 | 5,343 | ||||||
Interest payable | 358 | 364 | ||||||
Other liabilities | 3,192 | 4,237 | ||||||
Total liabilities | 1,309,418 | 1,322,009 | ||||||
Stockholders' equity | ||||||||
Common stock, no par value; 20,000,000 shares authorized; 10,668,589 shares issued and outstanding at September 30, 2017, and 10,640,735 shares issued and outstanding at December 31, 2016 | 110,353 | 109,911 | ||||||
Retained earnings | 72,449 | 66,195 | ||||||
Accumulated other comprehensive income (loss) | 455 | (1,922 | ) | |||||
Total stockholders' equity | 183,257 | 174,184 | ||||||
Total liabilities and stockholders' equity | $ | 1,492,675 | $ | 1,496,193 | ||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Interest income | ||||||||||||||||
Loans, including fees | $ | 13,469 | $ | 13,375 | $ | 41,667 | $ | 39,084 | ||||||||
Securities available for sale | ||||||||||||||||
Taxable | 1,427 | 1,285 | 4,236 | 4,075 | ||||||||||||
Tax-exempt | 62 | 82 | 198 | 254 | ||||||||||||
Federal funds sold and other | 176 | 123 | 515 | 328 | ||||||||||||
Total interest income | 15,134 | 14,865 | 46,616 | 43,741 | ||||||||||||
Interest expense | ||||||||||||||||
Deposits | 954 | 965 | 2,854 | 2,917 | ||||||||||||
Repurchase agreements and other | 7 | 10 | 21 | 28 | ||||||||||||
FHLB advances | - | 10 | - | 32 | ||||||||||||
Other borrowings | 68 | 101 | 234 | 321 | ||||||||||||
Subordinated debt | 74 | 63 | 218 | 181 | ||||||||||||
Total interest expense | 1,103 | 1,149 | 3,327 | 3,479 | ||||||||||||
Net interest income | 14,031 | 13,716 | 43,289 | 40,262 | ||||||||||||
Provision for loan losses | 891 | 312 | 2,033 | 1,436 | ||||||||||||
Net interest income after provision for loan losses | 13,140 | 13,404 | 41,256 | 38,826 | ||||||||||||
Non-interest income | ||||||||||||||||
Service charges on deposit accounts | 1,136 | 1,031 | 3,201 | 2,975 | ||||||||||||
Electronic banking income | 811 | 791 | 2,424 | 2,355 | ||||||||||||
Secondary market mortgage income | 67 | 64 | 173 | 163 | ||||||||||||
Other | 163 | 176 | 530 | 571 | ||||||||||||
2,177 | 2,062 | 6,328 | 6,064 | |||||||||||||
Non-interest expenses | ||||||||||||||||
Salaries and employee benefits | 4,760 | 4,817 | 14,703 | 15,025 | ||||||||||||
Occupancy and equipment expenses | 1,511 | 1,635 | 4,481 | 4,697 | ||||||||||||
Outside data processing | 1,344 | 1,300 | 4,019 | 3,935 | ||||||||||||
Professional fees | 196 | 167 | 721 | 500 | ||||||||||||
Taxes, other than payroll, property and income | 189 | 156 | 589 | 473 | ||||||||||||
Write-downs, expenses, sales of other real estate owned, net | 346 | 765 | 1,139 | 1,402 | ||||||||||||
Amortization of intangibles | 252 | 278 | 768 | 862 | ||||||||||||
FDIC insurance | 159 | 278 | 506 | 752 | ||||||||||||
Other expenses | 1,168 | 1,212 | 3,401 | 3,674 | ||||||||||||
9,925 | 10,608 | 30,327 | 31,320 | |||||||||||||
Income before income taxes | 5,392 | 4,858 | 17,257 | 13,570 | ||||||||||||
Provision for income taxes | 1,925 | 1,694 | 6,207 | 4,803 | ||||||||||||
Net income | $ | 3,467 | $ | 3,164 | $ | 11,050 | $ | 8,767 | ||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.33 | $ | 0.30 | $ | 1.04 | $ | 0.83 | ||||||||
Diluted | 0.32 | 0.30 | 1.03 | 0.83 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net income | $ | 3,467 | $ | 3,164 | $ | 11,050 | $ | 8,767 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Unrealized gains (losses) arising during the period | (68 | ) | 15 | 3,658 | 4,504 | |||||||||||
Reclassification of realized amount | - | - | - | (4 | ) | |||||||||||
Net change in unrealized gain on securities | (68 | ) | 15 | 3,658 | 4,500 | |||||||||||
Less tax impact | 24 | (5 | ) | (1,281 | ) | (1,576 | ) | |||||||||
Other comprehensive income (loss) | (44 | ) | 10 | 2,377 | 2,924 | |||||||||||
Comprehensive income | $ | 3,423 | $ | 3,174 | $ | 13,427 | $ | 11,691 |
Common Stock | Retained Earnings | Accumulated Other Comprehensive Income | Total | |||||||||||||
Balances, January 1, 2017 | $ | 109,911 | $ | 66,195 | $ | (1,922 | ) | $ | 174,184 | |||||||
Net income | - | 11,050 | - | 11,050 | ||||||||||||
Other comprehensive income | - | - | 2,377 | 2,377 | ||||||||||||
Cash dividends paid ($0.45 per share) | - | (4,796 | ) | - | (4,796 | ) | ||||||||||
Stock based compensation expense | 194 | - | - | 194 | ||||||||||||
Stock options exercised | 248 | - | - | 248 | ||||||||||||
Balances, September 30, 2017 | $ | 110,353 | $ | 72,449 | $ | 455 | $ | 183,257 |
2017 | 2016 | |||||||
Cash flows from operating activities | ||||||||
Net income | $ | 11,050 | $ | 8,767 | ||||
Adjustments to reconcile net income to net cash from operating activities | ||||||||
Depreciation | 1,303 | 1,461 | ||||||
Provision for loan losses | 2,033 | 1,436 | ||||||
Amortization (accretion), net | 1,166 | 2,010 | ||||||
OREO writedowns, net | 434 | 508 | ||||||
Stock compensation expense | 194 | 160 | ||||||
Changes in : | ||||||||
Interest receivable | (198 | ) | (259 | ) | ||||
Other assets | (24 | ) | (140 | ) | ||||
Interest payable | (6 | ) | (76 | ) | ||||
Other liabilities | (1,045 | ) | (2,071 | ) | ||||
Net cash from operating activities | 14,907 | 11,796 | ||||||
Cash flows from investing activities | ||||||||
Net change in time deposits with other banks | (250 | ) | - | |||||
Purchases of securities available for sale | (49,210 | ) | (22,512 | ) | ||||
Proceeds from maturities and calls of securities available for sale | 50,787 | 62,011 | ||||||
Redemption of FRB and FHLB stock | 15 | 190 | ||||||
Net change in loans | (30,865 | ) | (51,417 | ) | ||||
Acquisition of subsidiary, net of cash received | - | 16,385 | ||||||
Purchases of premises and equipment, net | (654 | ) | (413 | ) | ||||
Proceeds from sales of other real estate acquired through foreclosure | 1,827 | 870 | ||||||
Net cash from (used in) investing activities | (28,350 | ) | 5,114 | |||||
Cash flows from financing activities | ||||||||
Net change in deposits | (10,020 | ) | 8,246 | |||||
Net change in agreements to repurchase securities | 1,296 | 3,282 | ||||||
Repayment of other borrowed funds | (2,859 | ) | (1,824 | ) | ||||
Proceeds from stock option exercises | 248 | 645 | ||||||
Repayment of FHLB advances, net | - | (772 | ) | |||||
Common stock dividends paid | (4,796 | ) | (4,338 | ) | ||||
Net cash from (used in) financing activities | (16,131 | ) | 5,239 | |||||
Net change in cash and cash equivalents | (29,574 | ) | 22,149 | |||||
Cash and cash equivalents at beginning of period | 104,718 | 72,539 | ||||||
Cash and cash equivalents at end of period | $ | 75,144 | $ | 94,688 |
2017 | 2016 | |||||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid during period for interest | $ | 3,333 | $ | 3,555 | ||||
Cash paid during period for income taxes | 6,395 | 5,122 | ||||||
Loans transferred to real estate acquired through foreclosure | 983 | 631 | ||||||
Stock issued to acquire subsidiary | - | 22,041 | ||||||
Premises transferred to other real estate owned | 71 | - |
September 30, 2017 | ||||||||||||||||
Year | Total | Net Income | ||||||||||||||
Subsidiary | Location | Acquired | Assets | Qtr | YTD | |||||||||||
Citizens Deposit Bank & Trust | Vanceburg, Kentucky | 1991 | $ | 425,115 | $ | 1,209 | $ | 3,509 | ||||||||
Premier Bank, Inc. | Huntington, West Virginia | 1998 | 1,060,991 | 2,734 | 9,007 | |||||||||||
Parent and Intercompany Eliminations | 6,569 | (476 | ) | (1,466 | ) | |||||||||||
Consolidated Total | $ | 1,492,675 | $ | 3,467 | $ | 11,050 |
2017 | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||
Available for sale | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||
U. S. sponsored agency MBS - residential | $ | 199,483 | $ | 1,028 | $ | (578 | ) | $ | 199,933 | |||||||
U. S. sponsored agency CMO’s - residential | 56,330 | 553 | (369 | ) | 56,514 | |||||||||||
Total mortgage-backed securities of government sponsored agencies | 255,813 | 1,581 | (947 | ) | 256,447 | |||||||||||
U. S. government sponsored agency securities | 19,344 | 5 | (74 | ) | 19,275 | |||||||||||
Obligations of states and political subdivisions | 13,346 | 140 | (5 | ) | 13,481 | |||||||||||
Total available for sale | $ | 288,503 | $ | 1,726 | $ | (1,026 | ) | $ | 289,203 |
2016 | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||
Available for sale | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||
U. S. sponsored agency MBS - residential | $ | 177,105 | $ | 245 | $ | (3,173 | ) | $ | 174,177 | |||||||
U. S. sponsored agency CMO’s - residential | 73,163 | 761 | (657 | ) | 73,267 | |||||||||||
Total mortgage-backed securities of government sponsored agencies | 250,268 | 1,006 | (3,830 | ) | 247,444 | |||||||||||
U. S. government sponsored agency securities | 24,652 | 23 | (174 | ) | 24,501 | |||||||||||
Obligations of states and political subdivisions | 16,645 | 111 | (94 | ) | 16,662 | |||||||||||
Total available for sale | $ | 291,565 | $ | 1,140 | $ | (4,098 | ) | $ | 288,607 |
Amortized Cost | Fair Value | |||||||
Available for sale | ||||||||
Due in one year or less | $ | 9,687 | $ | 9,701 | ||||
Due after one year through five years | 17,073 | 17,070 | ||||||
Due after five years through ten years | 5,375 | 5,430 | ||||||
Due after ten years | 555 | 555 | ||||||
Mortgage-backed securities of government sponsored agencies | 255,813 | 256,447 | ||||||
Total available for sale | $ | 288,503 | $ | 289,203 |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Description of Securities | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
U.S government sponsored agency securities | $ | 17,242 | $ | (74 | ) | $ | - | $ | - | $ | 17,242 | $ | (74 | ) | ||||||||||
U.S government sponsored agency MBS – residential | 56,820 | (429 | ) | 5,234 | (149 | ) | 62,054 | (578 | ) | |||||||||||||||
U.S government sponsored agency CMO’s – residential | 11,256 | (129 | ) | 11,184 | (240 | ) | 22,440 | (369 | ) | |||||||||||||||
Obligations of states and political subdivisions | 619 | (4 | ) | 775 | (1 | ) | 1,394 | (5 | ) | |||||||||||||||
Total temporarily impaired | $ | 85,937 | $ | (636 | ) | $ | 17,193 | $ | (390 | ) | $ | 103,130 | $ | (1,026 | ) |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Description of Securities | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
U.S government sponsored agency securities | $ | 17,207 | $ | (174 | ) | $ | - | $ | - | $ | 17,207 | $ | (174 | ) | ||||||||||
U.S government sponsored agency MBS – residential | 157,022 | (3,173 | ) | - | - | 157,022 | (3,173 | ) | ||||||||||||||||
U.S government sponsored agency CMO’s – residential | 18,374 | (373 | ) | 8,750 | (284 | ) | 27,124 | (657 | ) | |||||||||||||||
Obligations of states and political subdivisions | 7,961 | (94 | ) | - | - | 7,961 | (94 | ) | ||||||||||||||||
Total temporarily impaired | $ | 200,564 | $ | (3,814 | ) | $ | 8,750 | $ | (284 | ) | $ | 209,314 | $ | (4,098 | ) |
2017 | 2016 | |||||||
Residential real estate | $ | 337,502 | $ | 342,294 | ||||
Multifamily real estate | 70,698 | 74,165 | ||||||
Commercial real estate: | ||||||||
Owner occupied | 134,773 | 129,370 | ||||||
Non owner occupied | 237,655 | 220,836 | ||||||
Commercial and industrial | 82,332 | 76,736 | ||||||
Consumer | 29,675 | 30,916 | ||||||
All other | 162,689 | |||||||
$ | 1,055,324 | $ | 1,024,823 |
Loan Class | Balance Dec 31, 2016 | Provision (credit) for loan losses | Loans charged-off | Recoveries | Balance Sept 30, 2017 | |||||||||||||||
Residential real estate | $ | 2,948 | $ | 363 | $ | (362 | ) | $ | 52 | $ | 3,001 | |||||||||
Multifamily real estate | 785 | 475 | - | - | 1,260 | |||||||||||||||
Commercial real estate: | ||||||||||||||||||||
Owner occupied | 1,543 | (161 | ) | (7 | ) | 242 | 1,617 | |||||||||||||
Non owner occupied | 2,350 | 265 | (8 | ) | - | 2,607 | ||||||||||||||
Commercial and industrial | 1,140 | 3 | (138 | ) | 95 | 1,100 | ||||||||||||||
Consumer | 347 | 148 | (214 | ) | 86 | 367 | ||||||||||||||
All other | 1,723 | 940 | (373 | ) | 117 | 2,407 | ||||||||||||||
Total | $ | 10,836 | $ | 2,033 | $ | (1,102 | ) | $ | 592 | $ | 12,359 |
Loan Class | Balance Dec 31, 2015 | Provision (credit) for loan losses | Loans charged-off | Recoveries | Balance Sept 30, 2016 | |||||||||||||||
Residential real estate | $ | 2,501 | $ | 377 | $ | (107 | ) | $ | 19 | $ | 2,790 | |||||||||
Multifamily real estate | 821 | 92 | - | - | 913 | |||||||||||||||
Commercial real estate: | ||||||||||||||||||||
Owner occupied | 1,509 | (140 | ) | - | 2 | 1,371 | ||||||||||||||
Non owner occupied | 2,070 | 645 | - | - | 2,715 | |||||||||||||||
Commercial and industrial | 1,033 | 83 | (29 | ) | 42 | 1,129 | ||||||||||||||
Consumer | 307 | 172 | (232 | ) | 71 | 318 | ||||||||||||||
All other | 1,406 | 207 | (207 | ) | 221 | 1,627 | ||||||||||||||
Total | $ | 9,647 | $ | 1,436 | $ | (575 | ) | $ | 355 | $ | 10,863 |
Loan Class | Balance June 30, 2017 | Provision (credit) for loan losses | Loans charged-off | Recoveries | Balance Sept 30, 2017 | |||||||||||||||
Residential real estate | $ | 2,973 | $ | 170 | $ | (163 | ) | $ | 21 | $ | 3,001 | |||||||||
Multifamily real estate | 1,337 | (77 | ) | - | - | 1,260 | ||||||||||||||
Commercial real estate: | ||||||||||||||||||||
Owner occupied | 1,618 | 5 | (7 | ) | 1 | 1,617 | ||||||||||||||
Non owner occupied | 2,334 | 276 | (3 | ) | - | 2,607 | ||||||||||||||
Commercial and industrial | 1,093 | (6 | ) | (4 | ) | 17 | 1,100 | |||||||||||||
Consumer | 373 | 10 | (49 | ) | 33 | 367 | ||||||||||||||
All other | 1,967 | 513 | (110 | ) | 37 | 2,407 | ||||||||||||||
Total | $ | 11,695 | $ | 891 | $ | (336 | ) | $ | 109 | $ | 12,359 |
Loan Class | Balance June 30, 2016 | Provision (credit) for loan losses | Loans charged-off | Recoveries | Balance Sept 30, 2016 | |||||||||||||||
Residential real estate | $ | 2,747 | $ | 91 | $ | (51 | ) | $ | 3 | $ | 2,790 | |||||||||
Multifamily real estate | 822 | 91 | - | - | 913 | |||||||||||||||
Commercial real estate: | ||||||||||||||||||||
Owner occupied | 1,442 | (72 | ) | - | 1 | 1,371 | ||||||||||||||
Non owner occupied | 2,708 | 7 | - | - | 2,715 | |||||||||||||||
Commercial and industrial | 1,111 | 43 | (29 | ) | 4 | 1,129 | ||||||||||||||
Consumer | 306 | 139 | (142 | ) | 15 | 318 | ||||||||||||||
All other | 1,668 | 13 | (81 | ) | 27 | 1,627 | ||||||||||||||
Total | $ | 10,804 | $ | 312 | $ | (303 | ) | $ | 50 | $ | 10,863 |
2017 | 2016 | |||||||
Residential real estate | $ | 1,515 | $ | 1,619 | ||||
Commercial real estate | ||||||||
Owner occupied | 1,564 | 2,013 | ||||||
Non owner occupied | - | 5,396 | ||||||
Commercial and industrial | 214 | 232 | ||||||
All other | 1,828 | 2,061 | ||||||
Total carrying amount | $ | 5,121 | $ | 11,321 | ||||
Contractual principal balance | $ | 7,116 | $ | 14,784 | ||||
Carrying amount, net of allowance | $ | 5,071 | $ | 11,311 |
2017 | 2016 | |||||||
Balance at January 1 | $ | 1,208 | $ | 185 | ||||
New loans purchased | - | 1,151 | ||||||
Accretion of income | (398 | ) | (64 | ) | ||||
Reclassification to non-accretable | - | - | ||||||
Disposals | - | - | ||||||
Balance at September 30 | $ | 810 | $ | 1,272 |
September 30, 2017 | Principal Owed on Non-accrual Loans | Recorded Investment in Non-accrual Loans | Loans Past Due Over 90 Days, still accruing | |||||||||
Residential real estate | $ | 3,248 | $ | 2,846 | $ | 585 | ||||||
Multifamily real estate | 11,101 | 11,095 | 334 | |||||||||
Commercial real estate | ||||||||||||
Owner occupied | 2,052 | 1,974 | 63 | |||||||||
Non owner occupied | 310 | 209 | 86 | |||||||||
Commercial and industrial | 2,062 | 1,054 | 648 | |||||||||
Consumer | 331 | 304 | - | |||||||||
All other | 6,984 | 6,863 | - | |||||||||
Total | $ | 26,088 | $ | 24,345 | $ | 1,716 |
December 31, 2016 | Principal Owed on Non-accrual Loans | Recorded Investment in Non-accrual Loans | Loans Past Due Over 90 Days, still accruing | |||||||||
Residential real estate | $ | 3,467 | $ | 2,794 | $ | 606 | ||||||
Multifamily real estate | 11,157 | 11,106 | 334 | |||||||||
Commercial real estate | ||||||||||||
Owner occupied | 1,769 | 1,704 | 15 | |||||||||
Non owner occupied | 294 | 196 | 36 | |||||||||
Commercial and industrial | 2,537 | 1,209 | 1,008 | |||||||||
Consumer | 366 | 347 | - | |||||||||
All other | 8,408 | 8,391 | - | |||||||||
Total | $ | 27,998 | $ | 25,747 | $ | 1,999 |
Loan Class | Total Loans | 30-89 Days Past Due | Greater than 90 days past due | Total Past Due | Loans Not Past Due | |||||||||||||||
Residential real estate | $ | 337,502 | $ | 6,460 | $ | 1,717 | $ | 8,177 | $ | 329,325 | ||||||||||
Multifamily real estate | 70,698 | - | 11,429 | 11,429 | 59,269 | |||||||||||||||
Commercial real estate: | ||||||||||||||||||||
Owner occupied | 134,773 | 172 | 1,979 | 2,151 | 132,622 | |||||||||||||||
Non owner occupied | 237,655 | 374 | 227 | 601 | 237,054 | |||||||||||||||
Commercial and industrial | 82,332 | 179 | 1,628 | 1,807 | 80,525 | |||||||||||||||
Consumer | 29,675 | 365 | 121 | 486 | 29,189 | |||||||||||||||
All other | 162,689 | 1,370 | 6,861 | 8,231 | 154,458 | |||||||||||||||
Total | $ | 1,055,324 | $ | 8,920 | $ | 23,962 | $ | 32,882 | $ | 1,022,442 |
Loan Class | Total Loans | 30-89 Days Past Due | Greater than 90 days past due | Total Past Due | Loans Not Past Due | |||||||||||||||
Residential real estate | $ | 342,294 | $ | 6,113 | $ | 1,596 | $ | 7,709 | $ | 334,585 | ||||||||||
Multifamily real estate | 74,165 | - | 11,440 | 11,440 | 62,725 | |||||||||||||||
Commercial real estate: | ||||||||||||||||||||
Owner occupied | 129,370 | 1,746 | 1,474 | 3,220 | 126,150 | |||||||||||||||
Non owner occupied | 220,836 | 1,803 | 159 | 1,962 | 218,874 | |||||||||||||||
Commercial and industrial | 76,736 | 330 | 2,120 | 2,450 | 74,286 | |||||||||||||||
Consumer | 30,916 | 403 | 223 | 626 | 30,290 | |||||||||||||||
All other | 150,506 | 577 | 8,187 | 8,764 | 141,742 | |||||||||||||||
Total | $ | 1,024,823 | $ | 10,972 | $ | 25,199 | $ | 36,171 | $ | 988,652 |
Allowance for Loan Losses | Loan Balances | |||||||||||||||||||||||||||||||
Loan Class | Individually Evaluated for Impairment | Collectively Evaluated for Impairment | Acquired with Deteriorated Credit Quality | Total | Individually Evaluated for Impairment | Collectively Evaluated for Impairment | Acquired with Deteriorated Credit Quality | Total | ||||||||||||||||||||||||
Residential real estate | $ | - | $ | 3,001 | $ | - | $ | 3,001 | $ | 320 | $ | 335,667 | $ | 1,515 | $ | 337,502 | ||||||||||||||||
Multifamily real estate | 517 | 743 | - | 1,260 | 13,588 | 57,110 | - | 70,698 | ||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||
Owner occupied | 301 | 1,316 | - | 1,617 | 3,725 | 129,484 | 1,564 | 134,773 | ||||||||||||||||||||||||
Non-owner occupied | 88 | 2,519 | - | 2,607 | 5,583 | 232,072 | - | 237,655 | ||||||||||||||||||||||||
Commercial and industrial | 105 | 945 | 50 | 1,100 | 1,129 | 80,989 | 214 | 82,332 | ||||||||||||||||||||||||
Consumer | 19 | 348 | - | 367 | 19 | 29,656 | - | 29,675 | ||||||||||||||||||||||||
All other | 518 | 1,889 | - | 2,407 | 7,177 | 153,684 | 1,828 | 162,689 | ||||||||||||||||||||||||
Total | $ | 1,548 | $ | 10,761 | $ | 50 | $ | 12,359 | $ | 31,541 | $ | 1,018,662 | $ | 5,121 | $ | 1,055,324 |
Allowance for Loan Losses | Loan Balances | |||||||||||||||||||||||||||||||
Loan Class | Individually Evaluated for Impairment | Collectively Evaluated for Impairment | Acquired with Deteriorated Credit Quality | Total | Individually Evaluated for Impairment | Collectively Evaluated for Impairment | Acquired with Deteriorated Credit Quality | Total | ||||||||||||||||||||||||
Residential real estate | $ | - | $ | 2,948 | $ | - | $ | 2,948 | $ | 379 | $ | 340,296 | $ | 1,619 | $ | 342,294 | ||||||||||||||||
Multifamily real estate | - | 785 | - | 785 | 13,641 | 60,524 | - | 74,165 | ||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||
Owner occupied | 244 | 1,299 | - | 1,543 | 2,801 | 124,556 | 2,013 | 129,370 | ||||||||||||||||||||||||
Non-owner occupied | - | 2,350 | - | 2,350 | 2,373 | 213,067 | 5,396 | 220,836 | ||||||||||||||||||||||||
Commercial and industrial | 266 | 864 | 10 | 1,140 | 1,418 | 75,086 | 232 | 76,736 | ||||||||||||||||||||||||
Consumer | - | 347 | - | 347 | - | 30,916 | - | 30,916 | ||||||||||||||||||||||||
All other | 86 | 1,637 | - | 1,723 | 12,976 | 135,469 | 2,061 | 150,506 | ||||||||||||||||||||||||
Total | $ | 596 | $ | 10,230 | $ | 10 | $ | 10,836 | $ | 33,588 | $ | 979,914 | $ | 11,321 | $ | 1,024,823 |
Unpaid Principal Balance | Recorded Investment | Allowance for Loan Losses Allocated | ||||||||||
With no related allowance recorded: | ||||||||||||
Residential real estate | $ | 360 | $ | 320 | $ | - | ||||||
Multifamily real estate | 2,492 | 2,492 | - | |||||||||
Commercial real estate | ||||||||||||
Owner occupied | 2,916 | 2,855 | - | |||||||||
Non owner occupied | 3,604 | 3,512 | - | |||||||||
Commercial and industrial | 1,767 | 1,012 | - | |||||||||
All other | 3,186 | 3,066 | - | |||||||||
14,325 | 13,257 | - | ||||||||||
With an allowance recorded: | ||||||||||||
Multifamily real estate | $ | 11,102 | $ | 11,095 | $ | 517 | ||||||
Commercial real estate | ||||||||||||
Owner occupied | 888 | 870 | 301 | |||||||||
Non owner occupied | 2,072 | 2,072 | 88 | |||||||||
Commercial and industrial | 468 | 316 | 155 | |||||||||
Consumer | 19 | 19 | 19 | |||||||||
All other | 4,116 | 4,111 | 518 | |||||||||
18,665 | 18,483 | 1,598 | ||||||||||
Total | $ | 32,990 | $ | 31,740 | $ | 1,598 | ||||||
Unpaid Principal Balance | Recorded Investment | Allowance for Loan Losses Allocated | ||||||||||
With no related allowance recorded: | ||||||||||||
Residential real estate | $ | 743 | $ | 379 | $ | - | ||||||
Multifamily real estate | 13,692 | 13,641 | - | |||||||||
Commercial real estate | ||||||||||||
Owner occupied | 1,803 | 1,766 | - | |||||||||
Non owner occupied | 2,465 | 2,373 | - | |||||||||
Commercial and industrial | 2,429 | 1,338 | - | |||||||||
All other | 9,868 | 9,853 | - | |||||||||
31,000 | 29,350 | - | ||||||||||
With an allowance recorded: | ||||||||||||
Commercial real estate | ||||||||||||
Owner occupied | $ | 1,055 | $ | 1,035 | $ | 244 | ||||||
Commercial and industrial | 431 | 288 | 276 | |||||||||
All other | 3,124 | 3,123 | 86 | |||||||||
4,610 | 4,446 | 606 | ||||||||||
Total | $ | 35,610 | $ | 33,796 | $ | 606 |
Nine months ended Sept 30, 2017 | Nine months ended Sept 30, 2016 | |||||||||||||||||||||||
Loan Class | Average Recorded Investment | Interest Income Recognized | Cash Basis Interest Recognized | Average Recorded Investment | Interest Income Recognized | Cash Basis Interest Recognized | ||||||||||||||||||
Residential real estate | $ | 339 | $ | 1 | $ | 1 | $ | 612 | $ | 16 | $ | 14 | ||||||||||||
Multifamily real estate | 13,605 | 196 | 181 | 1,580 | 121 | 121 | ||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Owner occupied | 3,340 | 49 | 49 | 1,144 | 3 | 3 | ||||||||||||||||||
Non-owner occupied | 2,955 | 124 | 124 | 5,066 | 275 | 273 | ||||||||||||||||||
Commercial and industrial | 1,474 | 114 | 114 | 1,155 | 26 | 26 | ||||||||||||||||||
Consumer | 5 | - | - | - | - | - | ||||||||||||||||||
All other | 8,641 | 342 | 341 | 3,011 | 40 | 6 | ||||||||||||||||||
Total | $ | 30,359 | $ | 826 | $ | 810 | $ | 12,568 | $ | 481 | $ | 443 |
Three months ended Sept 30, 2017 | Three months ended Sept 30, 2016 | |||||||||||||||||||||||
Loan Class | Average Recorded Investment | Interest Income Recognized | Cash Basis Interest Recognized | Average Recorded Investment | Interest Income Recognized | Cash Basis Interest Recognized | ||||||||||||||||||
Residential real estate | $ | 323 | $ | - | $ | - | $ | 667 | $ | 5 | $ | 5 | ||||||||||||
Multifamily real estate | 13,590 | 66 | 60 | 2,594 | 63 | 63 | ||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Owner occupied | 3,910 | 27 | 27 | 1,847 | 3 | 3 | ||||||||||||||||||
Non-owner occupied | 3,749 | 63 | 63 | 4,240 | 175 | 175 | ||||||||||||||||||
Commercial and industrial | 1,390 | 13 | 13 | 1,809 | 10 | 10 | ||||||||||||||||||
Consumer | 9 | - | - | - | - | - | ||||||||||||||||||
All other | 7,183 | 53 | 53 | 5,243 | 33 | - | ||||||||||||||||||
Total | $ | 30,154 | $ | 222 | $ | 216 | $ | 16,400 | $ | 289 | $ | 256 |
September 30, 2017 | TDR’s on Non-accrual | Other TDR’s | Total TDR’s | |||||||||
Residential real estate | $ | 317 | $ | 110 | $ | 427 | ||||||
Multifamily real estate | - | 2,159 | 2,159 | |||||||||
Commercial real estate | ||||||||||||
Owner occupied | 602 | 1,766 | 2,368 | |||||||||
Non owner occupied | - | 3,875 | 3,875 | |||||||||
Commercial and industrial | 57 | 508 | 565 | |||||||||
Consumer | - | - | - | |||||||||
All other | 4,783 | 297 | 5,080 | |||||||||
Total | $ | 5,759 | $ | 8,715 | $ | 14,474 | ||||||
December 31, 2016 | TDR’s on Non-accrual | Other TDR’s | Total TDR’s | |||||||||
Residential real estate | $ | 129 | $ | 464 | $ | 593 | ||||||
Multifamily real estate | - | 2,201 | 2,201 | |||||||||
Commercial real estate | ||||||||||||
Owner occupied | - | 856 | 856 | |||||||||
Commercial and industrial | 62 | 352 | 414 | |||||||||
All other | 751 | 4,395 | 5,146 | |||||||||
Total | $ | 942 | $ | 8,268 | $ | 9,210 | ||||||
Nine months ended Sept 30, 2017 | Nine months ended Sept 30, 2016 | |||||||||||||||||||||||
Loan Class | Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||||
Residential real estate | - | $ | - | $ | - | 8 | $ | 483 | $ | 483 | ||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | 2 | 1,525 | 1,525 | 3 | 865 | 865 | ||||||||||||||||||
Non owner occupied | 2 | 3,875 | 3,875 | 1 | 100 | 100 | ||||||||||||||||||
Commercial and industrial | 1 | 191 | 191 | 1 | 20 | 20 | ||||||||||||||||||
All other | - | - | - | 1 | 4,106 | 4,106 | ||||||||||||||||||
Total | 5 | $ | 5,591 | $ | 5,591 | 14 | $ | 5,574 | $ | 5,574 |
Three months ended Sept 30, 2017 | Three months ended Sept 30, 2016 | |||||||||||||||||||||||
Loan Class | Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||||
Residential real estate | - | $ | - | $ | - | 6 | $ | 184 | $ | 184 | ||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | - | - | - | 1 | 255 | 255 | ||||||||||||||||||
Non owner occupied | 2 | 3,875 | 3,875 | - | - | - | ||||||||||||||||||
All other | - | - | - | 1 | 4,106 | 4,106 | ||||||||||||||||||
Total | 2 | $ | 3,875 | $ | 3,875 | 8 | $ | 4,545 | $ | 4,545 |
Loan Class | Pass | Special Mention | Substandard | Doubtful | Total Loans | |||||||||||||||
Residential real estate | $ | 324,121 | $ | 3,502 | $ | 9,878 | $ | 1 | $ | 337,502 | ||||||||||
Multifamily real estate | 52,472 | 3,590 | 12,024 | 2,612 | 70,698 | |||||||||||||||
Commercial real estate: | ||||||||||||||||||||
Owner occupied | 122,983 | 4,305 | 7,485 | - | 134,773 | |||||||||||||||
Non-owner occupied | 220,173 | 11,243 | 6,239 | - | 237,655 | |||||||||||||||
Commercial and industrial | 71,850 | 7,400 | 3,082 | - | 82,332 | |||||||||||||||
Consumer | 29,145 | 136 | 375 | 19 | 29,675 | |||||||||||||||
All other | 148,216 | 5,479 | 8,994 | - | 162,689 | |||||||||||||||
Total | $ | 968,960 | $ | 35,655 | $ | 48,077 | $ | 2,632 | $ | 1,055,324 |
Loan Class | Pass | Special Mention | Substandard | Doubtful | Total Loans | |||||||||||||||
Residential real estate | $ | 328,905 | $ | 4,880 | $ | 8,507 | $ | 2 | $ | 342,294 | ||||||||||
Multifamily real estate | 59,375 | 78 | 14,712 | - | 74,165 | |||||||||||||||
Commercial real estate: | ||||||||||||||||||||
Owner occupied | 118,134 | 6,720 | 4,516 | - | 129,370 | |||||||||||||||
Non-owner occupied | 213,641 | 4,391 | 2,804 | - | 220,836 | |||||||||||||||
Commercial and industrial | 72,094 | 2,337 | 2,275 | 30 | 76,736 | |||||||||||||||
Consumer | 30,369 | 242 | 305 | - | 30,916 | |||||||||||||||
All other | 134,945 | 1,958 | 13,603 | - | 150,506 | |||||||||||||||
Total | $ | 957,463 | $ | 20,606 | $ | 46,722 | $ | 32 | $ | 1,024,823 |
September 30, 2017 | December 31, 2016 | Regulatory Minimum Requirements | To Be Considered Well Capitalized | |||||||||||||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | 13.8 | % | 13.4 | % | 4.5 | % | 6.5 | % | ||||||||
Tier 1 Capital (to Risk-Weighted Assets) | 14.4 | % | 13.9 | % | 6.0 | % | 8.0 | % | ||||||||
Total Capital (to Risk-Weighted Assets) | 15.5 | % | 15.0 | % | 8.0 | % | 10.0 | % | ||||||||
Tier 1 Capital (to Average Assets) | 10.7 | % | 10.1 | % | 4.0 | % | 5.0 | % |
Three Months Ended Sept 30, | Nine Months Ended Sept 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Basic earnings per share | ||||||||||||||||
Income available to common stockholders | $ | 3,467 | $ | 3,164 | $ | 11,050 | $ | 8,767 | ||||||||
Weighted average common shares outstanding | 10,661,157 | 10,626,185 | 10,653,594 | 10,508,809 | ||||||||||||
Earnings per share | $ | 0.33 | $ | 0.30 | $ | 1.04 | $ | 0.83 | ||||||||
Diluted earnings per share | ||||||||||||||||
Income available to common stockholders | $ | 3,467 | $ | 3,164 | $ | 11,050 | $ | 8,767 | ||||||||
Weighted average common shares outstanding | 10,661,157 | 10,626,185 | 10,653,594 | 10,508,809 | ||||||||||||
Add dilutive effects of potential additional common stock | 77,794 | 60,742 | 80,418 | 60,372 | ||||||||||||
Weighted average common and dilutive potential common shares outstanding | 10,738,951 | 10,686,927 | 10,734,012 | 10,569,181 | ||||||||||||
Earnings per share assuming dilution | $ | 0.32 | $ | 0.30 | $ | 1.03 | $ | 0.83 |
Fair Value Measurements at September 30, 2017 Using | ||||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Financial assets | ||||||||||||||||||||
Cash and due from banks | $ | 63,512 | $ | 63,512 | $ | - | $ | - | $ | 63,512 | ||||||||||
Time deposits with other banks | 2,582 | - | 2,589 | - | 2,589 | |||||||||||||||
Federal funds sold | 11,632 | 11,632 | - | - | 11,632 | |||||||||||||||
Securities available for sale | 289,203 | - | 289,203 | - | 289,203 | |||||||||||||||
Loans, net | 1,042,965 | - | - | 1,029,145 | 1,029,145 | |||||||||||||||
Federal Home Loan Bank stock | 3,185 | n/a | n/a | n/a | n/a | |||||||||||||||
Interest receivable | 4,060 | - | 829 | 3,231 | 4,060 | |||||||||||||||
Financial liabilities | ||||||||||||||||||||
Deposits | $ | (1,269,384 | ) | $ | (925,328 | ) | $ | (340,134 | ) | $ | - | $ | (1,265,462 | ) | ||||||
Securities sold under agreements to repurchase | (25,116 | ) | - | (25,116 | ) | - | (25,116 | ) | ||||||||||||
Other borrowed funds | (6,000 | ) | - | (5,966 | ) | - | (5,966 | ) | ||||||||||||
Subordinated Debt | (5,368 | ) | - | (5,381 | ) | - | (5,381 | ) | ||||||||||||
Interest payable | (358 | ) | (7 | ) | (351 | ) | - | (358 | ) |
Fair Value Measurements at December 31, 2016 Using | ||||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Financial assets | ||||||||||||||||||||
Cash and due from banks | $ | 97,163 | $ | 97,163 | $ | - | $ | - | $ | 97,163 | ||||||||||
Time deposits with other banks | 2,332 | - | 2,352 | - | 2,352 | |||||||||||||||
Federal funds sold | 7,555 | 7,555 | - | - | 7,555 | |||||||||||||||
Securities available for sale | 288,607 | - | 288,607 | - | 288,607 | |||||||||||||||
Loans, net | 1,013,987 | - | - | 1,004,388 | 1,004,388 | |||||||||||||||
Federal Home Loan Bank stock | 3,200 | n/a | n/a | n/a | n/a | |||||||||||||||
Interest receivable | 3,862 | - | 771 | 3,091 | 3,862 | |||||||||||||||
Financial liabilities | ||||||||||||||||||||
Deposits | $ | (1,279,386 | ) | $ | (920,745 | ) | $ | (354,885 | ) | $ | - | $ | (1,275,630 | ) | ||||||
Securities sold under agreements to repurchase | (23,820 | ) | - | (23,820 | ) | - | (23,820 | ) | ||||||||||||
Other borrowed funds | (8,859 | ) | - | (8,906 | ) | - | (8,906 | ) | ||||||||||||
Subordinated debt | (5,343 | ) | - | (5,341 | ) | - | (5,341 | ) | ||||||||||||
Interest payable | (364 | ) | (7 | ) | (357 | ) | - | (364 | ) |
Fair Value Measurements at September 30, 2017 Using: | ||||||||||||||||
Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Available for sale | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||
U. S. agency MBS - residential | $ | 199,933 | $ | - | $ | 199,933 | $ | - | ||||||||
U. S. agency CMO’s - residential | 56,514 | - | 56,514 | - | ||||||||||||
Total mortgage-backed securities of government sponsored agencies | 256,447 | - | 256,447 | - | ||||||||||||
U. S. government sponsored agency securities | 19,275 | - | 19,275 | - | ||||||||||||
Obligations of states and political subdivisions | 13,481 | - | 13,481 | - | ||||||||||||
Total available for sale | $ | 289,203 | $ | - | $ | 289,203 | $ | - |
Fair Value Measurements at December 31, 2016 Using: | ||||||||||||||||
Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Available for sale | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||
U. S. agency MBS - residential | $ | 174,177 | $ | - | $ | 174,177 | $ | - | ||||||||
U. S. agency CMO’s - residential | 73,267 | - | 73,267 | - | ||||||||||||
Total mortgage-backed securities of government sponsored agencies | 247,444 | - | 247,444 | - | ||||||||||||
U. S. government sponsored agency securities | 24,501 | - | 24,501 | - | ||||||||||||
Obligations of states and political subdivisions | 16,662 | - | 16,662 | - | ||||||||||||
Total securities available for sale | $ | 288,607 | $ | - | $ | 288,607 | $ | - |
Fair Value Measurements at September 30, 2017 Using | ||||||||||||||||
Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
Impaired loans: | ||||||||||||||||
Multifamily real estate | $ | 10,578 | $ | - | $ | - | $ | 10,578 | ||||||||
Commercial real estate: | ||||||||||||||||
Owner occupied | 569 | - | - | 569 | ||||||||||||
Non-owner occupied | 1,984 | - | - | 1,984 | ||||||||||||
Commercial and industrial | 161 | - | - | 161 | ||||||||||||
All other | 3,593 | - | - | 3,593 | ||||||||||||
Total impaired loans | $ | 16,885 | $ | - | $ | - | $ | 16,885 | ||||||||
Other real estate owned: | ||||||||||||||||
Residential real estate | $ | 370 | $ | - | $ | - | $ | 370 | ||||||||
Commercial real estate: | ||||||||||||||||
Owner occupied | 175 | - | - | 175 | ||||||||||||
Non-owner occupied | 1,853 | - | - | 1,853 | ||||||||||||
All other | 2,855 | - | - | 2,855 | ||||||||||||
Total OREO | $ | 5,253 | $ | - | $ | - | $ | 5,253 |
September 30, 2017 | Valuation Techniques | Unobservable Inputs | Range (Weighted Avg) | ||||||
Impaired loans: | |||||||||
Multifamily real estate: | $ | 10,578 | sales comparison | adjustment for differences between the comparable sales | 4.0%-4.0% (4.0%) | ||||
Commercial real estate: | |||||||||
Owner occupied | 569 | sales comparison | adjustment for estimated realizable value | 23.1%-23.1% (23.1%) | |||||
Non-owner occupied | 1,984 | income approach | adjustment for differences in net operating income expectations | 67.4%-67.4% (67.4%) | |||||
Commercial and industrial | 161 | sales comparison | adjustment for estimated realizable value | 8.0%-56.5% (52.8%) | |||||
All other | 3,593 | sales comparison | adjustment for percentage of completion of construction | 8.0%-23.0% (22.7%) | |||||
Total impaired loans | $ | 16,885 | |||||||
Other real estate owned: | |||||||||
Residential real estate | $ | 370 | sales comparison | adjustment for differences between the comparable sales | 0.0%-50.2% (16.4%) | ||||
Commercial real estate: | |||||||||
Owner occupied | 175 | sales comparison | adjustment for estimated realizable value | 21.8%-21.8% (21.8%) | |||||
Non-owner occupied | 1,853 | sales comparison | adjustment for estimated realizable value | 31.8%-58.9% (34.7%) | |||||
All other | 2,855 | sales comparison | adjustment for estimated realizable value | 15.1%-69.0% (18.8%) | |||||
Total OREO | $ | 5,253 |
Fair Value Measurements at December 31, 2016 Using | ||||||||||||||||
Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
Impaired loans: | ||||||||||||||||
Commercial real estate: | ||||||||||||||||
Owner occupied | $ | 793 | $ | - | $ | - | $ | 793 | ||||||||
Commercial and Industrial | 12 | - | - | 12 | ||||||||||||
All Other | 3,036 | - | - | 3,036 | ||||||||||||
Total impaired loans | $ | 3,841 | $ | - | $ | - | $ | 3,841 | ||||||||
Other real estate owned: | ||||||||||||||||
Residential real estate: | $ | 613 | $ | - | $ | - | $ | 613 | ||||||||
Commercial real estate: | ||||||||||||||||
Owner occupied | 175 | - | - | 175 | ||||||||||||
Non-owner occupied | 2,153 | - | - | 2,153 | ||||||||||||
All other | 3,683 | - | - | 3,683 | ||||||||||||
Total OREO | $ | 6,624 | $ | - | $ | - | $ | 6,624 |
December 31, 2016 | Valuation Techniques | Unobservable Inputs | Range (Weighted Avg) | ||||||
Impaired loans: | |||||||||
Commercial Real Estate | |||||||||
Owner Occupied | $ | 793 | sales comparison | adjustment for limited salability of specialized property | 9.3%-76.4% (19.3%) | ||||
Commercial and Industrial | 12 | sales comparison | adjustment for differences between the comparable sales | 8.0%-8.0% (8.0%) | |||||
All Other | 3,036 | sales comparison | adjustment for differences between the comparable sales | 5.7%-9.0% (8.0%) | |||||
Total impaired loans | $ | 3,841 | |||||||
Other real estate owned: | |||||||||
Residential Real Estate | $ | 613 | sales comparison | adjustment for differences between the comparable sales | 0.7%-86.8% (25.2%) | ||||
Commercial Real Estate | |||||||||
Owner Occupied | 175 | sales comparison | adjustment for differences between the comparable sales | 21.8%-21.8% (21.8%) | |||||
Non-owner Occupied | 2,153 | sales comparison | adjustment for differences between the comparable sales | 17.2%-27.6% (25.7%) | |||||
All Other | 3,683 | sales comparison | adjustment for estimated realizable value | 15.1%-45.4% (21.8%) | |||||
Total OREO | $ | 6,624 |
PREMIER FINANCIAL BANCORP, INC. | ||||||||||||||||||||||||
AVERAGE CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||||||
AND NET INTEREST INCOME ANALYSIS | ||||||||||||||||||||||||
Nine Months Ended Sept 30, 2017 | Nine Months Ended Sept 30, 2016 | |||||||||||||||||||||||
Balance | Interest | Yield/Rate | Balance | Interest | Yield/Rate | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Interest earning assets | ||||||||||||||||||||||||
Federal funds sold and other | $ | 46,851 | $ | 515 | 1.47 | % | $ | 66,518 | $ | 328 | 0.66 | % | ||||||||||||
Securities available for sale | ||||||||||||||||||||||||
Taxable | 286,602 | 4,236 | 1.97 | 294,926 | 4,075 | 1.84 | ||||||||||||||||||
Tax-exempt | 12,523 | 198 | 3.24 | 18,048 | 254 | 2.89 | ||||||||||||||||||
Total investment securities | 299,125 | 4,434 | 2.02 | 312,974 | 4,329 | 1.90 | ||||||||||||||||||
Total loans | 1,038,719 | 41,667 | 5.36 | 995,517 | 39,084 | 5.24 | ||||||||||||||||||
Total interest-earning assets | 1,384,695 | 46,616 | 4.51 | % | 1,375,009 | 43,741 | 4.26 | % | ||||||||||||||||
Allowance for loan losses | (11,231 | ) | (10,235 | ) | ||||||||||||||||||||
Cash and due from banks | 40,700 | 38,291 | ||||||||||||||||||||||
Other assets | 80,857 | 81,678 | ||||||||||||||||||||||
Total assets | $ | 1,495,021 | $ | 1,484,743 | ||||||||||||||||||||
Liabilities and Equity | ||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||
Interest-bearing deposits | $ | 959,489 | 2,854 | 0.40 | $ | 960,668 | 2,917 | 0.41 | ||||||||||||||||
Short-term borrowings | 22,512 | 21 | 0.12 | 25,068 | 28 | 0.15 | ||||||||||||||||||
FHLB advances | - | - | - | 2,904 | 32 | 1.47 | ||||||||||||||||||
Other borrowings | 7,586 | 234 | 4.12 | 10,396 | 321 | 4.12 | ||||||||||||||||||
Subordinated debentures | 5,355 | 218 | 5.44 | 5,027 | 181 | 4.81 | ||||||||||||||||||
Total interest-bearing liabilities | 994,942 | 3,327 | 0.45 | % | 1,004,063 | 3,479 | 0.46 | % | ||||||||||||||||
Non-interest bearing deposits | 314,344 | 302,558 | ||||||||||||||||||||||
Other liabilities | 4,582 | 3,918 | ||||||||||||||||||||||
Stockholders’ equity | 181,153 | 174,204 | ||||||||||||||||||||||
Total liabilities and equity | $ | 1,495,021 | $ | 1,484,743 | ||||||||||||||||||||
Net interest earnings | $ | 43,289 | $ | 40,262 | ||||||||||||||||||||
Net interest spread | 4.06 | % | 3.80 | % | ||||||||||||||||||||
Net interest margin | 4.19 | % | 3.92 | % |
PREMIER FINANCIAL BANCORP, INC. | ||||||||||||||||||||||||
AVERAGE CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||||||
AND NET INTEREST INCOME ANALYSIS | ||||||||||||||||||||||||
Three Months Ended Sept 30, 2017 | Three Months Ended Sept 30, 2016 | |||||||||||||||||||||||
Balance | Interest | Yield/Rate | Balance | Interest | Yield/Rate | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Interest earning assets | ||||||||||||||||||||||||
Federal funds sold and other | $ | 32,288 | $ | 176 | 2.16 | % | $ | 69,396 | $ | 123 | 0.71 | % | ||||||||||||
Securities available for sale | ||||||||||||||||||||||||
Taxable | 288,241 | 1,427 | 1.98 | 288,582 | 1,285 | 1.78 | ||||||||||||||||||
Tax-exempt | 11,579 | 62 | 3.30 | 16,796 | 82 | 3.00 | ||||||||||||||||||
Total investment securities | 299,820 | 1,489 | 2.03 | 305,378 | 1,367 | 1.85 | ||||||||||||||||||
Total loans | 1,047,202 | 13,469 | 5.10 | 1,027,011 | 13,375 | 5.18 | ||||||||||||||||||
Total interest-earning assets | 1,379,310 | 15,134 | 4.37 | % | 1,401,785 | 14,865 | 4.23 | % | ||||||||||||||||
Allowance for loan losses | (11,760 | ) | (10,840 | ) | ||||||||||||||||||||
Cash and due from banks | 41,253 | 42,224 | ||||||||||||||||||||||
Other assets | 79,702 | 81,240 | ||||||||||||||||||||||
Total assets | $ | 1,488,505 | $ | 1,514,409 | ||||||||||||||||||||
Liabilities and Equity | ||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||
Interest-bearing deposits | $ | 946,258 | 954 | 0.40 | $ | 970,005 | 965 | 0.40 | ||||||||||||||||
Short-term borrowings | 22,784 | 7 | 0.12 | 29,571 | 10 | 0.13 | ||||||||||||||||||
FHLB advances | - | - | - | 5,104 | 10 | 0.78 | ||||||||||||||||||
Other borrowings | 6,553 | 68 | 4.12 | 9,779 | 101 | 4.11 | ||||||||||||||||||
Subordinated debentures | 5,365 | 74 | 5.47 | 5,328 | 63 | 4.70 | ||||||||||||||||||
Total interest-bearing liabilities | 980,960 | 1,103 | 0.45 | % | 1,019,787 | 1,149 | 0.45 | % | ||||||||||||||||
Non-interest bearing deposits | 318,894 | 312,898 | ||||||||||||||||||||||
Other liabilities | 4,539 | 3,536 | ||||||||||||||||||||||
Stockholders’ equity | 184,112 | 178,188 | ||||||||||||||||||||||
Total liabilities and equity | $ | 1,488,505 | $ | 1,514,409 | ||||||||||||||||||||
Net interest earnings | $ | 14,031 | $ | 13,716 | ||||||||||||||||||||
Net interest spread | 3.92 | % | 3.78 | % | ||||||||||||||||||||
Net interest margin | 4.05 | % | 3.91 | % |
(In Thousands) | ||||||||
2017 | 2016 | |||||||
Non-accrual loans | $ | 24,345 | $ | 25,747 | ||||
Accruing loans which are contractually past due 90 days or more | 1,716 | 1,999 | ||||||
Accruing restructured loans | 8,715 | 8,268 | ||||||
Total non-performing and restructured loans | 34,776 | 36,014 | ||||||
Other real estate acquired through foreclosure (OREO) | 11,458 | 12,665 | ||||||
Total non-performing assets | $ | 46,234 | $ | 48,679 | ||||
Non-performing loans as a percentage of total loans | 3.30 | % | 3.51 | % | ||||
Non-performing assets as a percentage of total assets | 3.10 | % | 3.25 | % |