☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OF 15(d) OR THE SECURITIES EXCHANGE ACT OF 1934 |
2021
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Common Stock, No Par Value | CALB | NASDAQ Global Select Market | ||
(Title of class) | (Trading Symbol) | (Name of exchange on which registered) |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
SEPTEMBERJUNE 30, 20202021 3 Financial Statements 3 Management’s Discussion and Analysis of Financial Condition and Results of Operations 27 Quantitative and Qualitative Disclosures About Market Risk 45 Controls and Procedures 4645 4746 Legal Proceedings 4746 Risk Factors 4746 Unregistered Sales of Equity Securities and Use of Proceeds 4746 Defaults Upon Senior Securities 4746 Mine Safety Disclosures 4746 Other Information 4746 Exhibits 4847 4847
September 30, 2020 | December 31, 2019 | |||||||
ASSETS: | ||||||||
Cash and due from banks | $ | 23,339 | $ | 19,579 | ||||
Federal funds sold | 480,555 | 94,763 | ||||||
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Total cash and cash equivalents | 503,894 | 114,342 | ||||||
Investment securities, available for sale | 50,906 | 28,555 | ||||||
Loans, net of allowance for losses of $13,385 and $11,075 at September 30, 2020 and December 31, 2019, respectively | 1,340,725 | 941,132 | ||||||
Premises and equipment, net | 5,933 | 3,668 | ||||||
Bank owned life insurance (BOLI) | 23,577 | 22,316 | ||||||
Goodwill and other intangible assets | 7,564 | 7,595 | ||||||
Accrued interest receivable and other assets | 40,152 | 34,426 | ||||||
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Total assets | $ | 1,972,751 | $ | 1,152,034 | ||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY: | ||||||||
Deposits | ||||||||
Non-interest bearing | $ | 633,726 | $ | 387,267 | ||||
Interest bearing | 803,506 | 600,969 | ||||||
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Total deposits | 1,437,232 | 988,236 | ||||||
Other borrowings | 352,703 | 10,000 | ||||||
Junior Subordinated debt securities | 24,990 | 4,977 | ||||||
Accrued interest payable and other liabilities | 23,231 | 18,565 | ||||||
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Total liabilities | 1,838,156 | 1,021,778 | ||||||
Commitments and Contingencies (Note 5) | ||||||||
Shareholders’ equity | ||||||||
Common stock, no par value; 40,000,000 shares authorized; 8,149,678 and 8,092,966 issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 107,776 | 106,427 | ||||||
Retained earnings | 26,036 | 23,518 | ||||||
Accumulated other comprehensive income, net of taxes | 783 | 311 | ||||||
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Total shareholders’ equity | 134,595 | 130,256 | ||||||
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Total liabilities and shareholders’ equity | $ | 1,972,751 | $ | 1,152,034 | ||||
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June 30, | December 31, | |||||||
2021 | 2020 | |||||||
ASSETS: | ||||||||
Cash and due from banks | $ | 26,159 | $ | 22,485 | ||||
Federal funds sold | 366,347 | 396,032 | ||||||
Total cash and cash equivalents | 392,506 | 418,517 | ||||||
Investment securities, available for sale | 61,142 | 55,093 | ||||||
Loans, net of allowance for losses of $13,240 and $14,111 at June 30, 2021 and December 31, 2020, respectively | 1,338,770 | 1,355,482 | ||||||
Premises and equipment, net | 5,089 | 5,778 | ||||||
Bank owned life insurance (BOLI) | 24,085 | 23,718 | ||||||
Goodwill and other intangible assets | 7,534 | 7,554 | ||||||
Accrued interest receivable and other assets | 39,937 | 39,637 | ||||||
Total assets | $ | 1,869,063 | $ | 1,905,779 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY: | ||||||||
Deposits | ||||||||
Non-interest bearing | $ | 791,580 | $ | 673,100 | ||||
Interest bearing | 888,192 | 859,106 | ||||||
Total deposits | 1,679,772 | 1,532,206 | ||||||
Other borrowings | 0 | 189,043 | ||||||
Junior Subordinated debt securities | 24,745 | 24,994 | ||||||
Accrued interest payable and other liabilities | 20,805 | 23,126 | ||||||
Total liabilities | 1,725,322 | 1,769,369 | ||||||
Commitments and Contingencies (Note 5) | 0 | 0 | ||||||
Shareholders’ equity | ||||||||
Common stock, 0 par value; 40,000,000 shares authorized; 8,229,116 and 8,171,734 issued and outstanding at June 30, 2021 and December 31, 2020, respectively | 108,417 | 107,948 | ||||||
Retained earnings | 34,792 | 27,821 | ||||||
Accumulated other comprehensive income, net of taxes | 532 | 641 | ||||||
Total shareholders’ equity | 143,741 | 136,410 | ||||||
Total liabilities and shareholders’ equity | $ | 1,869,063 | $ | 1,905,779 | ||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Interest income | ||||||||||||||||
Loans | $ | 12,849 | $ | 12,087 | $ | 37,096 | $ | 34,784 | ||||||||
Federal funds sold | 117 | 180 | 554 | 556 | ||||||||||||
Investment securities | 222 | 290 | 621 | 933 | ||||||||||||
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Total interest income | 13,188 | 12,557 | 38,271 | 36,273 | ||||||||||||
Interest expense | ||||||||||||||||
Deposits | 1,467 | 1,928 | 4,981 | 5,112 | ||||||||||||
Borrowings and subordinated debt | 533 | 196 | 1,136 | 806 | ||||||||||||
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Total interest expense | 2,000 | 2,124 | 6,117 | 5,918 | ||||||||||||
Net interest income | 11,188 | 10,433 | 32,154 | 30,355 | ||||||||||||
Provision for credit losses | 850 | 500 | 4,180 | 1,326 | ||||||||||||
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Net interest income after provision for credit losses | 10,338 | 9,933 | 27,974 | 29,029 | ||||||||||||
Non-interest income | ||||||||||||||||
Service charges and other fees | 779 | 762 | 2,287 | 2,151 | ||||||||||||
Gain on the sale of SBA loans | — | 212 | — | 235 | ||||||||||||
Other | 249 | 287 | 809 | 714 | ||||||||||||
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Total non-interest income | 1,028 | 1,261 | 3,096 | 3,100 | ||||||||||||
Non-interest expense | ||||||||||||||||
Salaries and benefits | 6,452 | 5,567 | 15,051 | 14,905 | ||||||||||||
Premises and equipment | 1,359 | 826 | 3,630 | 2,343 | ||||||||||||
Professional fees | 634 | 396 | 3,013 | 1,703 | ||||||||||||
Data processing | 734 | 525 | 1,796 | 1,365 | ||||||||||||
Other | 1,366 | 1,085 | 3,903 | 3,081 | ||||||||||||
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Total non-interest expense | 10,545 | 8,399 | 27,393 | 23,397 | ||||||||||||
Income before provision for income taxes | 821 | 2,795 | 3,677 | 8,732 | ||||||||||||
Provision for income taxes | 326 | 791 | 1,159 | 2,310 | ||||||||||||
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Net income | $ | 495 | $ | 2,004 | $ | 2,518 | $ | 6,422 | ||||||||
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Earnings per common share | ||||||||||||||||
Basic | $ | 0.06 | $ | 0.25 | $ | 0.31 | $ | 0.80 | ||||||||
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Diluted | $ | 0.06 | $ | 0.25 | $ | 0.31 | $ | 0.79 | ||||||||
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Average common shares outstanding | 8,141,807 | 8,051,729 | 8,124,387 | 8,040,196 | ||||||||||||
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Average common and equivalent shares outstanding | 8,169,334 | 8,135,337 | 8,159,521 | 8,120,376 | ||||||||||||
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Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Interest income | ||||||||||||||||
Loans | $ | 14,703 | $ | 12,466 | $ | 29,287 | $ | 24,248 | ||||||||
Federal funds sold | 84 | 108 | 172 | 437 | ||||||||||||
Investment securities | 392 | 207 | 752 | 398 | ||||||||||||
Total interest income | 15,179 | 12,781 | 30,211 | 25,083 | ||||||||||||
Interest expense | ||||||||||||||||
Deposits | 1,138 | 1,521 | 2,329 | 3,515 | ||||||||||||
Borrowings and subordinated debt | 455 | 475 | 960 | 602 | ||||||||||||
Total interest expense | 1,593 | 1,996 | 3,289 | 4,117 | ||||||||||||
Net interest income | 13,586 | 10,785 | 26,922 | 20,966 | ||||||||||||
Provision for credit losses | (1,100 | ) | 2,930 | (800 | ) | 3,330 | ||||||||||
Net interest income after provision for credit losses | 14,686 | 7,855 | 27,722 | 17,636 | ||||||||||||
Non-interest income | ||||||||||||||||
Service charges and other fees | 638 | 537 | 1,279 | 1,508 | ||||||||||||
Other | 318 | 240 | 598 | 560 | ||||||||||||
Total non-interest income | 956 | 777 | 1,877 | 2,068 | ||||||||||||
Non-interest expense | ||||||||||||||||
Salaries and benefits | 6,374 | 2,121 | 12,741 | 8,598 | ||||||||||||
Premises and equipment | 1,209 | 1,132 | 2,406 | 2,271 | ||||||||||||
Professional fees | 527 | 1,267 | 1,116 | 2,222 | ||||||||||||
Data processing | 484 | 536 | 1,064 | 1,062 | ||||||||||||
Other | 1,241 | 1,384 | 2,588 | 2,694 | ||||||||||||
Total non-interest expense | 9,835 | 6,440 | 19,915 | 16,847 | ||||||||||||
Income before provision for income taxes | 5,807 | 2,192 | 9,684 | 2,857 | ||||||||||||
Provision for income taxes | 1,645 | 642 | 2,713 | 834 | ||||||||||||
Net income | $ | 4,162 | $ | 1,550 | $ | 6,971 | $ | 2,023 | ||||||||
Earnings per common share | ||||||||||||||||
Basic | $ | 0.51 | $ | 0.19 | $ | 0.85 | $ | 0.25 | ||||||||
Diluted | $ | 0.50 | $ | 0.19 | $ | 0.84 | $ | 0.25 | ||||||||
Average common shares outstanding | 8,209,678 | 8,127,911 | 8,195,380 | 8,115,575 | ||||||||||||
Average common and equivalent shares outstanding | 8,295,278 | 8,165,938 | 8,275,510 | 8,160,152 | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net Income | $ | 495 | $ | 2,004 | $ | 2,518 | $ | 6,422 | ||||||||
Other comprehensive income | ||||||||||||||||
Unrealized (losses) gains on securities available for sale | (143 | ) | 4 | 602 | 501 | |||||||||||
Reclassification adjustment for realized loss on securities available for sale | — | — | 70 | — | ||||||||||||
Tax effect | 43 | (1 | ) | (200 | ) | (148 | ) | |||||||||
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Total other comprehensive (loss) income | (100 | ) | 3 | 472 | 353 | |||||||||||
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Total comprehensive income | $ | 395 | $ | 2,007 | $ | 2,990 | $ | 6,775 | ||||||||
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Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net Income | $ | 4,162 | $ | 1,550 | $ | 6,971 | $ | 2,023 | ||||||||
Other comprehensive income | ||||||||||||||||
Unrealized (losses) gains on securities available for sale | 588 | 669 | (155 | ) | 743 | |||||||||||
Reclassification adjustment for realized loss on securities available for sale | — | 0 | — | 70 | ||||||||||||
Tax effect | (174 | ) | (198 | ) | 46 | (241 | ) | |||||||||
Total other comprehensive (loss) income | 414 | 471 | (109 | ) | 572 | |||||||||||
Total comprehensive income | $ | 4,576 | $ | 2,021 | $ | 6,862 | $ | 2,595 | ||||||||
Accumulated | ||||||||||||||||||||
Other | ||||||||||||||||||||
Comprehensive | Total | |||||||||||||||||||
Common Stock | Retained | Income | Shareholders’ | |||||||||||||||||
Shares | Amount | Earnings | (Loss) | Equity | ||||||||||||||||
Balance at December 31, 2019 | 8,092,966 | $ | 106,427 | $ | 23,518 | $ | 311 | $ | 130,256 | |||||||||||
Stock awards issued and related compensation expense | 25,215 | 413 | — | — | 413 | |||||||||||||||
Shares withheld to pay taxes on stock based compensation | (7,550 | ) | (133 | ) | — | — | (133 | ) | ||||||||||||
Stock options exercised | 11,217 | 83 | — | — | 83 | |||||||||||||||
Net income | — | — | 473 | — | 473 | |||||||||||||||
Other comprehensive income | — | — | — | 101 | 101 | |||||||||||||||
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Balance at March 31, 2020 | 8,121,848 | $ | 106,790 | $ | 23,991 | $ | 412 | $ | 131,193 | |||||||||||
Stock awards issued and related compensation expense | 1,428 | 314 | — | — | 314 | |||||||||||||||
Stock options exercised | 10,181 | 137 | — | — | 137 | |||||||||||||||
Net income | — | — | 1,550 | — | 1,550 | |||||||||||||||
Other comprehensive income | — | — | — | 471 | 471 | |||||||||||||||
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Balance at June 30, 2020 | 8,133,457 | $ | 107,241 | $ | 25,541 | $ | 883 | $ | 133,665 | |||||||||||
Stock awards issued and related compensation expense | 12,483 | 525 | — | — | 525 | |||||||||||||||
Stock options exercised | 3,738 | 10 | — | — | 10 | |||||||||||||||
Net income | — | — | 495 | — | 495 | |||||||||||||||
Other comprehensive income | — | — | — | (100 | ) | (100 | ) | |||||||||||||
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Balance at September 30, 2020 | 8,149,678 | $ | 107,776 | $ | 26,036 | $ | 783 | $ | 134,595 | |||||||||||
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Accumulated | ||||||||||||||||||||
Other | ||||||||||||||||||||
Comprehensive | Total | |||||||||||||||||||
Common Stock | Retained | Income | Shareholders’ | |||||||||||||||||
Shares | Amount | Earnings | (Loss) | Equity | ||||||||||||||||
Balance at December 31, 2020 | 8,171,734 | $ | 107,948 | $ | 27,821 | $ | 641 | $ | 136,410 | |||||||||||
Stock awards issued and related compensation expense | 3,369 | 383 | — | — | 383 | |||||||||||||||
Stock options exercised | 14,495 | 99 | — | — | 99 | |||||||||||||||
Net income | — | — | 2,809 | — | 2,809 | |||||||||||||||
Other comprehensive income | — | — | — | (523 | ) | (523 | ) | |||||||||||||
Balance at March 31, 2021 | 8,189,598 | $ | 108,430 | $ | 30,630 | $ | 118 | $ | 139,178 | |||||||||||
Stock awards issued and related compensation expense | 28,562 | 234 | — | — | 234 | |||||||||||||||
Shares withheld to pay taxes on stock based compensation | (2,740 | ) | (150 | ) | — | — | (150 | ) | ||||||||||||
Stock options exercised | 21,770 | 48 | — | — | 48 | |||||||||||||||
Shares withheld to pay exercise price on stock options | (8,074 | ) | (145 | ) | — | — | (145 | ) | ||||||||||||
Net income | — | — | 4,162 | — | 4,162 | |||||||||||||||
Other comprehensive income | — | — | — | 414 | 414 | |||||||||||||||
Balance at June 30, 2021 | 8,229,116 | $ | 108,417 | $ | 34,792 | $ | 532 | $ | 143,741 | |||||||||||
Accumulated | ||||||||||||||||||||
Other | ||||||||||||||||||||
Comprehensive | Total | |||||||||||||||||||
Common Stock | Retained | Income | Shareholders’ | |||||||||||||||||
Shares | Amount | Earnings | (Loss) | Equity | ||||||||||||||||
Balance at December 31, 2018 | 7,993,908 | $ | 104,561 | $ | 16,517 | $ | 1 | $ | 121,079 | |||||||||||
Stock awards issued and related compensation expense | 12,638 | 172 | — | — | 172 | |||||||||||||||
Stock options exercised | 40,008 | 372 | — | — | 372 | |||||||||||||||
Net income | — | — | 1,868 | — | 1,868 | |||||||||||||||
Other comprehensive income | — | — | — | 166 | 166 | |||||||||||||||
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Balance at March 31, 2019 | 8,046,554 | $ | 105,105 | $ | 18,385 | $ | 167 | $ | 123,657 | |||||||||||
Stock awards issued and related compensation expense | — | 229 | — | — | 229 | |||||||||||||||
Stock options exercised | 660 | 20 | — | — | 20 | |||||||||||||||
Net income | — | — | 2,550 | — | 2,550 | |||||||||||||||
Other comprehensive income | — | — | — | 184 | 184 | |||||||||||||||
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Balance at June 30, 2019 | 8,047,214 | $ | 105,354 | $ | 20,935 | $ | 351 | $ | 126,640 | |||||||||||
Stock awards issued and related compensation expense | 3,132 | 347 | — | — | 347 | |||||||||||||||
Stock options exercised | 2,203 | 8 | — | — | 8 | |||||||||||||||
Net income | — | — | 2,004 | — | 2,004 | |||||||||||||||
Other comprehensive income | — | — | — | 3 | 3 | |||||||||||||||
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Balance at September 30, 2019 | 8,052,549 | $ | 105,709 | $ | 22,939 | $ | 354 | $ | 129,002 | |||||||||||
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Accumulated | ||||||||||||||||||||
Other | ||||||||||||||||||||
Comprehensive | Total | |||||||||||||||||||
Common Stock | Retained | Income | Shareholders’ | |||||||||||||||||
Shares | Amount | Earnings | (Loss) | Equity | ||||||||||||||||
Balance at December 31, 2019 | 8,092,966 | $ | 106,427 | $ | 23,518 | $ | 311 | $ | 130,256 | |||||||||||
Stock awards issued and related compensation expense | 25,215 | 413 | — | — | 413 | |||||||||||||||
Shares withheld to pay taxes on stock based compensation | (7,550 | ) | (133 | ) | — | — | (133 | ) | ||||||||||||
Stock options exercised | 11,217 | 83 | — | — | 83 | |||||||||||||||
Net income | — | — | 473 | — | 473 | |||||||||||||||
Other comprehensive income | — | — | — | 101 | 101 | |||||||||||||||
Balance at March 31, 2020 | 8,121,848 | $ | 106,790 | $ | 23,991 | $ | 412 | $ | 131,193 | |||||||||||
Stock awards issued and related compensation expense | 1,428 | 314 | — | — | 314 | |||||||||||||||
Stock options exercised | 10,181 | 137 | — | — | 137 | |||||||||||||||
Net income | — | — | 1,550 | — | 1,550 | |||||||||||||||
Other comprehensive income | — | — | — | 471 | 471 | |||||||||||||||
Balance at June 30, 2020 | 8,133,457 | $ | 107,241 | $ | 25,541 | $ | 883 | $ | 133,665 | |||||||||||
Nine Months Ended September 30, | ||||||||
2020 | 2019 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 2,518 | $ | 6,422 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Provision for loan losses | 4,180 | 1,326 | ||||||
Depreciation | 996 | 540 | ||||||
Deferred loan fees, net | 3,823 | 101 | ||||||
Accretion on discount of purchased loans, net | (216 | ) | (289 | ) | ||||
Stock based compensation, net | 1,119 | 748 | ||||||
Increase in cash surrender value of life insurance | (440 | ) | (392 | ) | ||||
Discount on retained portion of sold loans, net | (176 | ) | 40 | |||||
Loss on sale of investment securities, net | 70 | — | ||||||
Gain on sale of loans, net | — | (235 | ) | |||||
Increase in accrued interest receivable and other assets | (2,340 | ) | (3,581 | ) | ||||
Decrease in accrued interest payable and other liabilities | 2,929 | 2,653 | ||||||
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Net cash from operating activities | 12,463 | 7,333 | ||||||
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Cash flows from investing activities: | ||||||||
Purchase of investment securities | (35,403 | ) | — | |||||
Proceeds from sales of investment securities | 7,729 | — | ||||||
Proceeds from principal payments on investment securities | 5,425 | 7,786 | ||||||
Purchase of loans | (24,289 | ) | — | |||||
Net increase in loans | (382,916 | ) | (90,068 | ) | ||||
Purchase of low income tax credit investments | (941 | ) | (948 | ) | ||||
Purchase of Federal Home Loan Bank stock | (363 | ) | (866 | ) | ||||
Purchase of premises and equipment | (3,261 | ) | (380 | ) | ||||
Purchase of bank-owned life insurance policies | (821 | ) | (3,958 | ) | ||||
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Net cash used in investing activities | (434,840 | ) | (88,434 | ) | ||||
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Cash flows from financing activities: | ||||||||
Net increase (decrease) in customer deposits | 448,996 | 49,656 | ||||||
Proceeds from short term and overnight borrowings | 342,703 | 20,000 | ||||||
Proceeds from issuance of subordinated debt | 20,000 | — | ||||||
Proceeds from exercised stock options | 230 | 400 | ||||||
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Net cash provided by financing activities | 811,929 | 70,056 | ||||||
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Increase (decrease) in cash and cash equivalents | 389,552 | (11,045 | ) | |||||
Cash and cash equivalents, beginning of period | 114,342 | 78,705 | ||||||
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Cash and cash equivalents, end of period | $ | 503,894 | $ | 67,660 | ||||
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Supplemental disclosure of cash flow information: | ||||||||
Transfer of SBA loans to held-for-sale from loan portfolio | $ | — | $ | 3,068 | ||||
Recording of right to use assets and operating lease liabilities | $ | 2,903 | $ | 6,725 | ||||
Cash paid during the year for: | ||||||||
Interest | $ | 10,097 | $ | 5,738 | ||||
Income taxes | $ | 164 | $ | 1,640 |
Six Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 6,971 | $ | 2,023 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Provision for loan losses | (800 | ) | 3,330 | |||||
Provision for deferred taxes | 238 | 399 | ||||||
Depreciation | 1,490 | 646 | ||||||
Deferred loan fees, net | 1,215 | 4,259 | ||||||
Accretion on discount of purchased loans, net | (62 | ) | (136 | ) | ||||
Stock based compensation, net | 467 | 594 | ||||||
Increase in cash surrender value of life insurance | (327 | ) | (296 | ) | ||||
Discount on retained portion of sold loans, net | (18 | ) | (166 | ) | ||||
Loss on sale of investment securities, net | — | 70 | ||||||
Increase (decrease) in accrued interest receivable and other assets | (1,924 | ) | (3,902 | ) | ||||
Decrease in accrued interest payable and other liabilities | (684 | ) | (282 | ) | ||||
Net cash provided by operating activities | 6,566 | 6,539 | ||||||
Cash flows from investing activities: | ||||||||
Purchase of investment securities | (12,245 | ) | (21,666 | ) | ||||
Proceeds from sales of investment securities | — | 7,662 | ||||||
Proceeds from principal payments on investment securities | 6,155 | 3,570 | ||||||
Net increase (decrease) in loans | 16,378 | (351,545 | ) | |||||
Purchase of low income tax credit investments | (549 | ) | (714 | ) | ||||
Purchase of premises and equipment | (801 | ) | (1,687 | ) | ||||
Purchase of bank-owned life insurance policies | (40 | ) | (821 | ) | ||||
Net cash used for investing activities | 8,898 | (365,201 | ) | |||||
Cash flows from financing activities: | ||||||||
Net increase in customer deposits | 147,566 | 397,466 | ||||||
Paydown of long term borrowing | (189,043 | ) | — | |||||
Proceeds from short term and overnight borrowings, net | — | 354,703 | ||||||
Proceeds from exercised stock options, net | 2 | 220 | ||||||
Net cash provided by financing activities | (41,475 | ) | 752,389 | |||||
Increase in cash and cash equivalents | (26,011 | ) | 393,727 | |||||
Cash and cash equivalents, beginning of period | 418,517 | 114,342 | ||||||
Cash and cash equivalents, end of period | $ | 392,506 | $ | 508,069 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Recording of right to use assets and operating lease liabilities | $ | — | $ | 3,516 | ||||
Cash paid during the year for: | ||||||||
Interest | $ | 3,739 | $ | 4,114 | ||||
Income taxes | $ | 1,521 | $ | 164 |
2021.
Specifically, we have modified how we disclose our loan segments to be purpose-based versus collateral-based (as previously disclosed) so that there is more transparency to our SBA loan portfolio which now consists largely of Paycheck Protection Program loans under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). As a result, prior balances for both the current and prior year in the unaudited consolidated statements have been reclassified. These reclassifications had no effect on current or prior year net income, shareholders’ equity, total gross loan balances, or the overall balance of the allowance for credit losses.
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Dollars in thousands, except per share data) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Net income available to common shareholders | $ | 495 | $ | 2,004 | $ | 2,518 | $ | 6,422 | ||||||||
Weighted average basic common shares outstanding | 8,141,807 | 8,051,729 | 8,124,387 | 8,040,196 | ||||||||||||
Add: dilutive potential common shares | 27,527 | 83,608 | 35,134 | 80,180 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Weighted average diluted common shares outstanding | 8,169,334 | 8,135,337 | 8,159,521 | 8,120,376 | ||||||||||||
Basic earnings per share | $ | 0.06 | $ | 0.25 | $ | 0.31 | $ | 0.80 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Diluted earnings per share | $ | 0.06 | $ | 0.25 | $ | 0.31 | $ | 0.79 | ||||||||
|
|
|
|
|
|
|
|
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Dollars in thousands, except per share data) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Net income available to common shareholders | $ | 4,162 | $ | 1,550 | $ | 6,971 | $ | 2,023 | ||||||||
Weighted average basic common shares outstanding | 8,209,678 | 8,127,911 | 8,195,380 | 8,115,575 | ||||||||||||
Add: dilutive potential common shares | 85,600 | 38,027 | 80,130 | 44,577 | ||||||||||||
Weighted average diluted common shares outstanding | 8,295,278 | 8,165,938 | 8,275,510 | 8,160,152 | ||||||||||||
Basic earnings per share | $ | 0.51 | $ | 0.19 | $ | 0.85 | $ | 0.25 | ||||||||
Diluted earnings per share | $ | 0.50 | $ | 0.19 | $ | 0.84 | $ | 0.25 | ||||||||
Gross | Gross | Estimated | ||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
At September 30, 2020: | ||||||||||||||||
Mortgage backed securities | $ | 31,815 | $ | 881 | $ | (47 | ) | $ | 32,649 | |||||||
Government agencies | 2,444 | — | (5 | ) | 2,439 | |||||||||||
Corporate bonds | 15,535 | 323 | (40 | ) | 15,818 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total available for sale securities | $ | 49,794 | $ | 1,204 | $ | (92 | ) | $ | 50,906 | |||||||
|
|
|
|
|
|
|
| |||||||||
At December 31, 2019: | ||||||||||||||||
Mortgage backed securities | $ | 20,291 | $ | 436 | $ | (5 | ) | $ | 20,722 | |||||||
Government agencies | 7,824 | 9 | — | 7,833 | ||||||||||||
Corporate bonds | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total available for sale securities | $ | 28,115 | $ | 445 | $ | (5 | ) | $ | 28,555 | |||||||
|
|
|
|
|
|
|
|
2020.
Gross | Gross | Estimated | ||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
At June 30, 2021: | ||||||||||||||||
Mortgage backed securities | $ | 26,706 | $ | 513 | $ | (97 | ) | $ | 27,122 | |||||||
Government agencies | 2,375 | 37 | 0 | 2,412 | ||||||||||||
Corporate bonds | 31,306 | 574 | (272 | ) | 31,608 | |||||||||||
Total available for sale securities | $ | 60,387 | $ | 1,124 | $ | (369 | ) | $ | 61,142 | |||||||
At December 31, 2020: | ||||||||||||||||
Mortgage backed securities | $ | 27,541 | $ | 669 | $ | (17 | ) | $ | 28,193 | |||||||
Government agencies | 2,418 | 0 | (6 | ) | 2,412 | |||||||||||
Corporate bonds | 24,224 | 434 | (170 | ) | 24,488 | |||||||||||
Total available for sale securities | $ | 54,183 | $ | 1,103 | $ | (193 | ) | $ | 55,093 | |||||||
Less Than 12 Months | More Than 12 Months | Total | ||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||
At September 30, 2020: | ||||||||||||||||||||||||
Mortgage backed securities | $ | 5,215 | $ | (47 | ) | $ | — | $ | — | $ | 5,215 | $ | (47 | ) | ||||||||||
Government agencies | 2,444 | (5 | ) | — | — | 2,444 | (5 | ) | ||||||||||||||||
Corporate bonds | 5,000 | (40 | ) | — | — | 5,000 | (40 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total available for sale securities | $ | 12,659 | $ | (92 | ) | $ | — | $ | — | $ | 12,659 | $ | (92 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
At December 31, 2019: | ||||||||||||||||||||||||
Mortgage backed securities | $ | 481 | $ | (5 | ) | $ | — | $ | — | $ | 481 | $ | (5 | ) | ||||||||||
Government agencies | 1,598 | — | — | — | 1,598 | — | ||||||||||||||||||
Corporate bonds | — | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total available for sale securities | $ | 2,079 | $ | (5) | $ | — | $ | — | $ | 2,079 | $ | (5) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Less Than 12 Months | More Than 12 Months | Total | ||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||
At June 30, 2021: | ||||||||||||||||||||||||
Mortgage backed securities | $ | 9,947 | $ | (97 | ) | $ | — | $ | — | $ | 9,947 | $ | (97 | ) | ||||||||||
Government agencies | — | — | — | — | — | — | ||||||||||||||||||
Corporate bonds | 6,478 | (272 | ) | — | — | 6,478 | (272 | ) | ||||||||||||||||
Total available for sale securities | $ | 16,425 | $ | (369 | ) | $ | — | $ | — | $ | 16,425 | $ | (369 | ) | ||||||||||
At December 31, 2020: | ||||||||||||||||||||||||
Mortgage backed securities | $ | 4,481 | $ | (17 | ) | $ | — | $ | — | $ | 4,481 | $ | (17 | ) | ||||||||||
Government agencies | 2,412 | (6 | ) | — | — | 2,412 | (6 | ) | ||||||||||||||||
Corporate bonds | 7,830 | (170 | ) | — | — | 7,830 | (170 | ) | ||||||||||||||||
Total available for sale securities | $ | 14,723 | $ | (193 | ) | $ | — | $ | — | $ | 14,723 | $ | (193 | ) | ||||||||||
At2021 and December 31, 2019, the Company’s investment security portfolio consisted of 21 securities, two of which were in an unrealized loss position at year end. One security was a government agency security issued by the Small Business Administration. One security was a Mortgage-Backed-Security. Management believes that changes in the market value of its Mortgage-Backed-Securities since purchase are primarily attributable to changes in interest rates and relative illiquidity and not credit quality. Because the Company does not intend to sell and unlikely to be required to sell until a recovery of fair value, which may be at maturity, the Company did not consider those investments to be other-than-temporarily impaired at December 31, 2019.
2020, respectively.
September 30, 2020 | ||||||||
Amortized | Fair | |||||||
(Dollars in thousands) | Cost | Value | ||||||
Available for sale securities: | ||||||||
Less that one year | $ | — | $ | — | ||||
One to five years | — | — | ||||||
Five to ten years | — | — | ||||||
Beyond ten years | 15,535 | 15,818 | ||||||
Securities not due at a single maturity date | 34,259 | 35,088 | ||||||
|
|
|
| |||||
Total available for sale securities | $ | 49,794 | $ | 50,906 | ||||
|
|
|
|
2021.
June 30, 2021 | ||||||||
Amortized | Fair | |||||||
(Dollars in thousands) | Cost | Value | ||||||
Available for sale securities: | ||||||||
Less than one year | $ | — | $ | — | ||||
One to five years | 14,131 | 14,372 | ||||||
Five to ten years | 5,250 | 5,324 | ||||||
Beyond ten years | 11,925 | 11,912 | ||||||
Securities not due at a single maturity date | 29,081 | 29,534 | ||||||
Total available for sale securities | $ | 60,387 | $ | 61,142 | ||||
September 30, | December 31, | |||||||
(Dollars in thousands) | 2020 | 2019 | ||||||
Commercial and industrial | 379,400 | 389,746 | ||||||
Real estate - other | 539,541 | 502,929 | ||||||
Real estate - construction and land | 36,596 | 42,519 | ||||||
SBA | 373,921 | 12,830 | ||||||
Other | 25,706 | 1,628 | ||||||
|
|
|
| |||||
Total loans, gross | 1,355,164 | 949,652 | ||||||
Deferred loan origination (fees)/costs, net | (1,054 | ) | 2,555 | |||||
Allowance for loan losses | (13,385 | ) | (11,075 | ) | ||||
|
|
|
| |||||
Total loans, net | 1,340,725 | 941,132 | ||||||
|
|
|
|
June 30, | December 31, | |||||||
(Dollars in thousands) | 2021 | 2020 | ||||||
Commercial and industrial | $ | 425,643 | $ | 414,548 | ||||
Real estate - other | 616,451 | 550,690 | ||||||
Real estate - construction and land | 41,558 | 37,193 | ||||||
SBA | 204,734 | 317,564 | ||||||
Other | 64,253 | 49,075 | ||||||
Total loans, gross | 1,352,639 | 1,369,070 | ||||||
Deferred loan origination (fees)/costs, net | (629 | ) | 523 | |||||
Allowance for loan losses | (13,240 | ) | (14,111 | ) | ||||
Total loans, net | $ | 1,338,770 | $ | 1,355,482 | ||||
Commercial | Real Estate | |||||||||||||||||||||||
and | Real Estate | Construction | ||||||||||||||||||||||
(Dollars in thousands) | Industrial | Other | and Land | SBA | Other | Total | ||||||||||||||||||
As of September 30, 2020 | ||||||||||||||||||||||||
Grade: | ||||||||||||||||||||||||
Pass | $ | 361,080 | $ | 529,404 | $ | 34,052 | $ | 371,459 | $ | 25,706 | $ | 1,321,701 | ||||||||||||
Special Mention | 11,677 | 5,658 | 766 | 1,023 | — | 19,124 | ||||||||||||||||||
Substandard | 6,643 | 4,479 | 1,778 | 1,439 | — | 14,339 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 379,400 | $ | 539,541 | $ | 36,596 | $ | 373,921 | $ | 25,706 | $ | 1,355,164 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
As of December 31, 2019 | ||||||||||||||||||||||||
Grade: | ||||||||||||||||||||||||
Pass | $ | 378,327 | $ | 494,314 | $ | 40,731 | $ | 10,736 | $ | 1,628 | $ | 925,736 | ||||||||||||
Special Mention | 6,894 | 7,928 | 1,788 | 1,655 | — | 18,265 | ||||||||||||||||||
Substandard | 4,525 | 687 | — | 439 | — | 5,651 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 389,746 | $ | 502,929 | $ | 42,519 | $ | 12,830 | �� | $ | 1,628 | $ | 949,652 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Commercial | Real Estate | |||||||||||||||||||||||
and | Real Estate | Construction | ||||||||||||||||||||||
(Dollars in thousands) | Industrial | Other | and Land | SBA | Other | Total | ||||||||||||||||||
As of June 30, 2021 | ||||||||||||||||||||||||
Grade: | ||||||||||||||||||||||||
Pass | $ | 409,874 | $ | 604,110 | $ | 37,576 | $ | 203,031 | $ | 64,253 | $ | 1,318,844 | ||||||||||||
Special Mention | 13,026 | 3,777 | 1,297 | 564 | — | 18,664 | ||||||||||||||||||
Substandard | 2,743 | 8,564 | 2,685 | 1,139 | — | 15,131 | ||||||||||||||||||
Total | $ | 425,643 | $ | 616,451 | $ | 41,558 | $ | 204,734 | $ | 64,253 | $ | 1,352,639 | ||||||||||||
As of December 31, 2020 | ||||||||||||||||||||||||
Grade: | ||||||||||||||||||||||||
Pass | $ | 401,629 | $ | 540,153 | $ | 34,543 | $ | 315,277 | $ | 49,075 | $ | 1,340,677 | ||||||||||||
Special Mention | 9,013 | 2,911 | 872 | 859 | — | 13,655 | ||||||||||||||||||
Substandard | 3,906 | 7,626 | 1,778 | 1,428 | — | 14,738 | ||||||||||||||||||
Total | $ | 414,548 | $ | 550,690 | $ | 37,193 | $ | 317,564 | $ | 49,075 | $ | 1,369,070 | ||||||||||||
(Dollars in thousands) | 30 Days | 60 Days | 90+ Days | Non-Accrual | Current | Total | ||||||||||||||||||
As of September 30, 2020 | ||||||||||||||||||||||||
Commercial and industrial | $ | — | $ | 3,444 | $ | — | $ | 346 | $ | 375,610 | $ | 379,400 | ||||||||||||
Real estate - other | 628 | — | — | — | 538,913 | 539,541 | ||||||||||||||||||
Real estate - construction and land | — | — | — | — | 36,596 | 36,596 | ||||||||||||||||||
SBA | — | — | — | 234 | 373,687 | 373,921 | ||||||||||||||||||
Other | — | — | — | — | 25,706 | 25,706 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total loans, gross | $ | 628 | $ | 3,444 | $ | — | $ | 580 | $ | 1,350,512 | $ | 1,355,164 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
As of December 31, 2019 | ||||||||||||||||||||||||
Commercial and industrial | $ | — | $ | 1,440 | $ | — | $ | 2,409 | $ | 385,897 | $ | 389,746 | ||||||||||||
Real estate - other | — | — | — | — | 502,929 | 502,929 | ||||||||||||||||||
Real estate- construction and land | — | — | — | — | 42,519 | 42,519 | ||||||||||||||||||
SBA | — | — | — | 344 | 12,486 | 12,830 | ||||||||||||||||||
Other | — | — | — | — | 1,628 | 1,628 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total loans, gross | $ | — | $ | 1,440 | $ | — | $ | 2,753 | $ | 945,459 | $ | 949,652 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) | 30 Days | 60 Days | 90+ Days | Non-Accrual | Current | Total | ||||||||||||||||||
As of June 30, 2021 | ||||||||||||||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | $ | — | $ | 425,643 | $ | 425,643 | ||||||||||||
Real estate - other | 621 | — | — | 1,000 | 614,830 | 616,451 | ||||||||||||||||||
Real estate - construction and land | — | — | — | — | 41,558 | 41,558 | ||||||||||||||||||
SBA | 188 | — | — | 234 | 204,312 | 204,734 | ||||||||||||||||||
Other | — | — | — | — | 64,253 | 64,253 | ||||||||||||||||||
Total loans, gross | $ | 1,372 | $ | — | $ | — | $ | 1,234 | $ | 1,350,033 | $ | 1,352,639 | ||||||||||||
As of December 31, 2020 | ||||||||||||||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | $ | — | $ | 414,548 | $ | 414,548 | ||||||||||||
Real estate - other | 1,505 | — | — | — | 549,185 | 550,690 | ||||||||||||||||||
Real estate - construction and land | — | — | — | — | 37,193 | 37,193 | ||||||||||||||||||
SBA | — | — | — | 234 | 317,330 | 317,564 | ||||||||||||||||||
Other | — | — | — | — | 49,075 | 49,075 | ||||||||||||||||||
Total loans, gross | $ | 1,505 | $ | — | $ | — | $ | 234 | $ | 1,367,331 | $ | 1,369,070 | ||||||||||||
(Dollars in thousands) | Commercial and Industrial | Real Estate Other | Real Estate Construction and Land | SBA | Other | Total | ||||||||||||||||||
As of September 30, 2020 | ||||||||||||||||||||||||
Gross loans: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 2,508 | $ | — | $ | — | $ | 234 | $ | — | $ | 2,742 | ||||||||||||
Loans collectively evaluated for impairment | 376,892 | 539,541 | 36,596 | 373,687 | 25,706 | 1,352,422 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total gross loans | $ | 379,400 | $ | 539,541 | $ | 36,596 | $ | 373,921 | $ | 25,706 | $ | 1,355,164 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 99 | $ | — | $ | — | $ | — | $ | — | $ | 99 | ||||||||||||
Loans collectively evaluated for impairment | 8,535 | 3,608 | 676 | 445 | 22 | 13,286 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total allowance for loan losses | $ | 8,634 | $ | 3,608 | $ | 676 | $ | 445 | $ | 22 | $ | 13,385 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
As of December 31, 2019 | ||||||||||||||||||||||||
Gross loans: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 4,572 | $ | 687 | $ | — | $ | 344 | $ | — | $ | 5,603 | ||||||||||||
Loans collectively evaluated for impairment | 385,174 | 502,242 | 42,519 | 12,486 | 1,628 | 944,049 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total loans | $ | 389,746 | $ | 502,929 | $ | 42,519 | $ | 12,830 | $ | 1,628 | $ | 949,652 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 600 | $ | — | $ | — | $ | 50 | $ | — | $ | 650 | ||||||||||||
Loans collectively evaluated for impairment | 6,108 | 3,281 | 1,022 | 6 | 8 | 10,425 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total allowance for loan losses | $ | 6,708 | $ | 3,281 | $ | 1,022 | $ | 56 | $ | 8 | $ | 11,075 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Commercial | Real Estate | |||||||||||||||||||||||
and | Real Estate | Construction | ||||||||||||||||||||||
(Dollars in thousands) | Industrial | Other | and Land | SBA | Other | Total | ||||||||||||||||||
As of June 30, 2021 | ||||||||||||||||||||||||
Gross loans: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 1,163 | $ | 1,000 | $ | — | $ | 234 | $ | — | $ | 2,397 | ||||||||||||
Loans collectively evaluated for impairment | 424,480 | 615,451 | 41,558 | 204,500 | 64,253 | 1,350,242 | ||||||||||||||||||
Total gross loans | $ | 425,643 | $ | 616,451 | $ | 41,558 | $ | 204,734 | $ | 64,253 | $ | 1,352,639 | ||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 19 | $ | — | $ | — | $ | 0 | $ | — | $ | 19 | ||||||||||||
Loans collectively evaluated for impairment | 8,114 | 4,069 | 697 | 317 | 24 | 13,221 | ||||||||||||||||||
Total allowance for loan losses | $ | 8,133 | $ | 4,069 | $ | 697 | $ | 317 | $ | 24 | $ | 13,240 | ||||||||||||
As of December 31, 2020 | ||||||||||||||||||||||||
Gross loans: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 2,288 | $ | — | $ | — | $ | 689 | $ | — | $ | 2,977 | ||||||||||||
Loans collectively evaluated for impairment | 412,260 | 550,690 | 37,193 | 316,875 | 49,075 | 1,366,093 | ||||||||||||||||||
Total loans | $ | 414,548 | $ | 550,690 | $ | 37,193 | $ | 317,564 | $ | 49,075 | $ | 1,369,070 | ||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 41 | $ | — | $ | — | $ | 259 | $ | — | $ | 300 | ||||||||||||
Loans collectively evaluated for impairment | 8,882 | 3,877 | 681 | 345 | 26 | 13,811 | ||||||||||||||||||
Total allowance for loan losses | $ | 8,923 | $ | 3,877 | $ | 681 | $ | 604 | $ | 26 | $ | 14,111 | ||||||||||||
Unpaid | Average | Interest | ||||||||||||||||||
Recorded | Principal | Related | Recorded | Income | ||||||||||||||||
(Dollars in thousands) | Investment | Balance | Allowance | Investment | Recognized | |||||||||||||||
As of September 30, 2020 | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial and industrial | $ | 346 | $ | 1,480 | $ | — | $ | 1,480 | $ | — | ||||||||||
SBA | $ | 234 | $ | 479 | $ | — | $ | 1,921 | $ | — | ||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial and industrial | $ | 2,162 | $ | 2,162 | $ | 99 | $ | 2,338 | $ | 119 | ||||||||||
Total: | ||||||||||||||||||||
Commercial and industrial | $ | 2,508 | $ | 3,642 | $ | 99 | $ | 3,818 | $ | 119 | ||||||||||
SBA | $ | 234 | $ | 479 | $ | — | $ | 1,921 | $ | — | ||||||||||
As of December 31, 2019 | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial and industrial | $ | 1,846 | $ | 1,860 | $ | — | $ | 1,282 | $ | 68 | ||||||||||
Real estate - other | $ | 687 | $ | 687 | $ | — | $ | 700 | $ | 52 | ||||||||||
SBA | $ | 294 | $ | 294 | $ | — | $ | 1,723 | $ | — | ||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial and industrial | $ | 2,726 | $ | 4,623 | $ | 600 | $ | 4,620 | $ | 56 | ||||||||||
SBA | $ | 50 | $ | 200 | $ | 50 | $ | 203 | $ | 15 | ||||||||||
Total: | ||||||||||||||||||||
Commercial and industrial | $ | 4,572 | $ | 6,483 | $ | 600 | $ | 5,902 | $ | 124 | ||||||||||
Real estate - other | $ | 687 | $ | 687 | $ | — | $ | 700 | $ | 52 | ||||||||||
SBA | $ | 344 | $ | 494 | $ | 50 | $ | 1,926 | $ | 15 |
(Dollars in thousands) | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||
As of June 30, 2021 | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Real estate - other | $ | 1,000 | $ | 1,000 | $ | — | $ | 1,000 | $ | 9 | ||||||||||
SBA | $ | 234 | $ | 757 | $ | — | $ | 2,282 | $ | 18 | ||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial and industrial | $ | 1,163 | $ | 1,163 | $ | 19 | $ | 1,041 | $ | 26 | ||||||||||
Total: | ||||||||||||||||||||
Commercial and industrial | $ | 1,163 | $ | 1,163 | $ | 19 | $ | 1,041 | $ | 26 | ||||||||||
Real estate - other | $ | 1,000 | $ | 1,000 | $ | — | $ | 1,000 | $ | 9 | ||||||||||
SBA | $ | 234 | $ | 757 | $ | — | $ | 2,282 | $ | 18 | ||||||||||
As of December 31, 2020 | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
SBA | $ | 234 | $ | 479 | $ | — | $ | 1,917 | $ | — | ||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial and industrial | $ | 2,288 | $ | 2,288 | $ | 41 | $ | 2,137 | $ | 148 | ||||||||||
SBA | $ | 455 | $ | 455 | $ | 259 | $ | 3,921 | $ | 57 | ||||||||||
Total: | ||||||||||||||||||||
Commercial and industrial | $ | 2,288 | $ | 2,288 | $ | 41 | $ | 2,137 | $ | 148 | ||||||||||
SBA | $ | 689 | $ | 934 | $ | 259 | $ | 5,838 | $ | 57 |
Commercial | Real Estate | |||||||||||||||||||||||
and | Real Estate | Construction | ||||||||||||||||||||||
(Dollars in thousands) | Industrial | Other | and Land | SBA | Other | Total | ||||||||||||||||||
Three months ended September 30, 2020 | ||||||||||||||||||||||||
Beginning balance | $ | 7,851 | $ | 3,332 | $ | 956 | $ | 366 | $ | 19 | $ | 12,524 | ||||||||||||
Provision for loan losses | 772 | 276 | (280 | ) | 79 | 3 | 850 | |||||||||||||||||
Charge-offs | — | — | — | — | — | — | ||||||||||||||||||
Recoveries | 11 | — | — | — | — | 11 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ending balance | $ | 8,634 | $ | 3,608 | $ | 676 | $ | 445 | $ | 22 | $ | 13,385 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Three months ended September 30, 2019 | ||||||||||||||||||||||||
Beginning balance | $ | 7,654 | $ | 2,688 | $ | 945 | $ | 199 | $ | 15 | $ | 11,501 | ||||||||||||
Provision for loan losses | 208 | 418 | (68 | ) | (58 | ) | — | 500 | ||||||||||||||||
Charge-offs | (1,604 | ) | — | — | — | — | (1,604 | ) | ||||||||||||||||
Recoveries | 15 | — | — | — | — | 15 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ending balance | $ | 6,273 | $ | 3,106 | $ | 877 | $ | 141 | $ | 15 | $ | 10,412 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Nine months ended September 30, 2020 | ||||||||||||||||||||||||
Beginning balance | $ | 6,708 | $ | 3,281 | $ | 1,022 | $ | 50 | $ | 14 | $ | 11,075 | ||||||||||||
Provision for loan losses | 3,688 | 327 | (346 | ) | 503 | 8 | 4,180 | |||||||||||||||||
Charge-offs | (1,868 | ) | — | — | (108 | ) | — | (1,976 | ) | |||||||||||||||
Recoveries | 106 | — | — | — | — | 106 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ending balance | $ | 8,634 | $ | 3,608 | $ | 676 | $ | 445 | $ | 22 | $ | 13,385 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Nine months ended September 30, 2019 | ||||||||||||||||||||||||
Beginning balance | $ | 5,401 | $ | 3,677 | $ | 1,524 | $ | 172 | $ | 26 | $ | 10,800 | ||||||||||||
Provision for loan losses | 2,449 | (571 | ) | (647 | ) | 106 | (11 | ) | 1,326 | |||||||||||||||
Charge-offs | (1,603 | ) | — | — | (137 | ) | — | (1,740 | ) | |||||||||||||||
Recoveries | 26 | — | — | — | — | 26 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ending balance | $ | 6,273 | $ | 3,106 | $ | 877 | $ | 141 | $ | 15 | $ | 10,412 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) | Commercial and Industrial | Real Estate Other | Real Estate Construction and Land | SBA | Other | Total | ||||||||||||||||||
Three months ended June 30, 2021 | ||||||||||||||||||||||||
Beginning balance | $ | 9,231 | $ | 3,957 | $ | 798 | $ | 575 | $ | 16 | $ | 14,577 | ||||||||||||
Provision for loan losses | (1,139 | ) | 112 | (101 | ) | 20 | 8 | (1,100 | ) | |||||||||||||||
Charge-offs | — | — | — | (278 | ) | — | (278 | ) | ||||||||||||||||
Recoveries | 41 | — | — | — | — | 41 | ||||||||||||||||||
Ending balance | $ | 8,133 | $ | 4,069 | $ | 697 | $ | 317 | $ | 24 | $ | 13,240 | ||||||||||||
Three months ended June 30, 2020 | ||||||||||||||||||||||||
Beginning balance | $ | 7,843 | $ | 2,661 | $ | 730 | $ | 321 | $ | 10 | $ | 11,565 | ||||||||||||
Provision for loan losses | 1,871 | 671 | 226 | 153 | 9 | 2,930 | ||||||||||||||||||
Charge-offs | (1,868 | ) | — | — | (108 | ) | — | (1,976 | ) | |||||||||||||||
Recoveries | 5 | — | — | — | — | 5 | ||||||||||||||||||
Ending balance | $ | 7,851 | $ | 3,332 | $ | 956 | $ | 366 | $ | 19 | $ | 12,524 | ||||||||||||
Six months ended June 30, 2021 | ||||||||||||||||||||||||
Beginning balance | $ | 8,923 | $ | 3,877 | $ | 681 | $ | 604 | $ | 26 | $ | 14,111 | ||||||||||||
Provision for loan losses | (997 | ) | 192 | 16 | (9 | ) | (2 | ) | (800 | ) | ||||||||||||||
Charge-offs | — | — | — | (278 | ) | — | (278 | ) | ||||||||||||||||
Recoveries | 207 | — | — | — | — | 207 | ||||||||||||||||||
Ending balance | $ | 8,133 | $ | 4,069 | $ | 697 | $ | 317 | $ | 24 | $ | 13,240 | ||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||
Beginning balance | $ | 6,708 | $ | 3,281 | $ | 1,022 | $ | 50 | $ | 14 | $ | 11,075 | ||||||||||||
Provision for loan losses | 2,916 | 51 | (66 | ) | 424 | 5 | 3,330 | |||||||||||||||||
Charge-offs | (1,868 | ) | — | — | (108 | ) | — | (1,976 | ) | |||||||||||||||
Recoveries | 95 | — | — | — | — | 95 | ||||||||||||||||||
Ending balance | $ | 7,851 | $ | 3,332 | $ | 956 | $ | 366 | $ | 19 | $ | 12,524 | ||||||||||||
2020.
2020.
As of June 30, 2021, the PPPLF borrowing arrangement had 0 outstanding balance.
Undercredit agreements with several correspondent banks, the Company can borrow up to $61.0$116.0 million. In a separate agreement, the Company can borrow up to $10.0 million or the total market value of securities pledged to a correspondent bank under a repurchase agreement. At September 30, 2020 and December 31, 2019 there were no investment securities pledged to the correspondent bank under this agreement. There were no0 borrowings outstanding under these arrangements at SeptemberJune 30, 20202021 and December 31, 2019.
2020.
There were 0 borrowings outstanding under this arrangement at June 30, 2021 and December 31, 2020.
cost.
. The subordinated debt was recorded net of related issuance costs of $300,000. At June 30, 2021 and December 31, 2020, the balance remained at $20.0 million, net of the remaining unamortized issuance cost.
(Dollars in thousands) | Due in One Year Or Less | Over One Year But Less Than Five Years | Over Five Years | Total | ||||||||||||
Unfunded fixed rate loan commitments: | ||||||||||||||||
Interest rate less than or equal to 4.00% | $ | 9,635 | $ | 974 | $ | 6,591 | $ | 17,200 | ||||||||
Interest rate between 4.00% and 5.00% | 1,993 | 4,091 | 1,675 | 7,759 | ||||||||||||
Interest rate greater than or equal to 5.00% | 0 | 746 | 0 | 746 | ||||||||||||
Total unfunded fixed rate loan commitments | $ | 11,628 | $ | 5,811 | $ | 8,266 | $ | 25,705 | ||||||||
September 30, | ||||
(Dollars in thousands) | 2020 | |||
Operating lease cost (cost resulting from lease payments) | $ | 1,859 | ||
Operating lease - operating cash flows (fixed payments) | $ | 1,811 | ||
Operating lease - ROU assets | $ | 8,781 | ||
Operating lease - liabilities | $ | 10,943 | ||
Weighted average lease term - operating leases | 3.5 years | |||
Weighted average discount rate - operating leases | 2.58 | % |
(Dollars in thousands) | June 30, 2021 | |||
Operating lease cost (cost resulting from lease payments) | $ | 1,057 | ||
Operating lease—operating cash flows (fixed payments) | $ | 1,208 | ||
Operating lease—ROU assets | $ | 7,386 | ||
Operating lease—liabilities | $ | 9,327 | ||
Weighted average lease term—operating leases | 2.8 years | |||
Weighted average discount rate—operating leases | 0.54 | % |
September 30, | ||||
(Dollars in thousands) | 2020 | |||
2020 | $ | 595 | ||
2021 | 2,431 | |||
2022 | 2,441 | |||
2023 | 1,497 | |||
2024 | 1,456 | |||
Thereafter | 3,291 | |||
|
| |||
Total undiscounted cash flows | 11,711 | |||
Discount on cash flows | (768 | ) | ||
|
| |||
Total lease libility | $ | 10,943 | ||
|
|
2021.
(Dollars in thousands) | June 30, 2021 | |||
2021 | $ | 1,222 | ||
2022 | 2,441 | |||
2023 | 1,497 | |||
2024 | 1,456 | |||
2025 | 1,500 | |||
Thereafter | 1,792 | |||
Total undiscounted cash flows | 9,908 | |||
Discount on cash flows | (581 | ) | ||
Total lease liability | $ | 9,327 | ||
operations.
Carrying | Fair Value Measurements | |||||||||||||||||||
(Dollars in thousands) | Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
As of September 30, 2020 | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and due from banks | $ | 503,894 | $ | 503,894 | $ | — | $ | — | $ | 503,894 | ||||||||||
Securities available for sale | 50,906 | — | 50,906 | — | 50,906 | |||||||||||||||
Loans, net | 1,340,725 | — | — | 1,343,541 | 1,343,541 | |||||||||||||||
Accrued interest receivable | 6,488 | — | 103 | 6,385 | 6,488 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 1,437,232 | $ | 1,301,370 | $ | 135,875 | $ | — | $ | 1,437,245 | ||||||||||
Other borrowings | 352,703 | — | — | 352,824 | 352,824 | |||||||||||||||
Subordinated debt | 24,990 | — | — | 24,633 | 24,633 | |||||||||||||||
Accrued interest payable | 640 | — | 51 | 589 | 640 | |||||||||||||||
As of December 31, 2019 | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and due from banks | $ | 114,342 | $ | 114,342 | $ | — | $ | — | $ | 114,342 | ||||||||||
Securities available for sale | 28,555 | — | 28,555 | — | 28,555 | |||||||||||||||
Loans, net | 941,132 | — | — | 940,944 | 940,944 | |||||||||||||||
Accrued interest receivable | 3,398 | — | 168 | 3,230 | 3,398 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 988,236 | $ | 870,495 | $ | 121,136 | $ | — | $ | 991,631 | ||||||||||
Other borrowings | 10,000 | — | — | 10,032 | 10,032 | |||||||||||||||
Subordinated debt | 4,977 | — | — | 5,112 | 5,112 | |||||||||||||||
Accrued interest payable | 400 | — | 326 | 74 | 400 |
Carrying | Fair Value Measurements | |||||||||||||||||||
(Dollars in thousands) | Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
As of June 30, 2021 | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and due from banks | $ | 392,506 | $ | 392,506 | $ | — | $ | — | $ | 392,506 | ||||||||||
Securities available for sale | 61,142 | — | 61,142 | — | 61,142 | |||||||||||||||
Loans, net | 1,338,770 | — | — | 1,339,306 | 1,339,306 | |||||||||||||||
Accrued interest receivable | 5,509 | — | 282 | 5,227 | 5,509 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 1,679,772 | $ | 1,577,178 | $ | 102,715 | $ | — | $ | 1,679,893 | ||||||||||
Other borrowings | 0 | — | — | 0 | 0 | |||||||||||||||
Subordinated debt | 24,745 | — | — | 26,358 | 26,358 | |||||||||||||||
Accrued interest payable | 379 | — | 311 | 69 | 376 | |||||||||||||||
As of December 31, 2020 | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and due from banks | $ | 418,517 | $ | 418,517 | $ | — | $ | — | $ | 418,517 | ||||||||||
Securities available for sale | 55,093 | — | 55,093 | — | 55,093 | |||||||||||||||
Loans, net | 1,355,482 | — | — | 1,360,845 | 1,360,845 | |||||||||||||||
Accrued interest receivable | 6,578 | — | 225 | 6,353 | 6,578 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 1,532,206 | $ | 1,331,572 | $ | 200,888 | $ | — | $ | 1,532,460 | ||||||||||
Other borrowings | 189,043 | — | — | 189,123 | 189,123 | |||||||||||||||
Subordinated debt | 24,994 | — | — | 24,642 | 24,642 | |||||||||||||||
Accrued interest payable | 545 | — | 51 | 494 | 545 |
(Dollars in thousands) | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||
As of September 30, 2020 | ||||||||||||||||
Investments available for sale: | ||||||||||||||||
Mortgage backed securities | $ | 32,649 | $ | — | $ | 32,649 | $ | — | ||||||||
Government agencies | 2,439 | — | 2,439 | — | ||||||||||||
Corporate bonds | 15,818 | — | 15,818 | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets measured at fair value on a recurring basis | $ | 50,906 | $ | — | $ | 50,906 | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
As of December 31, 2019 | ||||||||||||||||
Investments available for sale: | ||||||||||||||||
Mortgage backed securities | $ | 20,722 | $ | — | $ | 20,722 | $ | — | ||||||||
Government agencies | 7,833 | — | 7,833 | — | ||||||||||||
Corporate bonds | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets measured at fair value on a recurring basis | $ | 28,555 | $ | — | $ | 28,555 | $ | — | ||||||||
|
|
|
|
|
|
|
|
(Dollars in thousands) | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||
As of June 30, 2021 | ||||||||||||||||
Investments available for sale: | ||||||||||||||||
Mortgage backed securities | $ | 27,122 | $ | — | $ | 27,122 | $ | — | ||||||||
Government agencies | 2,412 | — | 2,412 | — | ||||||||||||
Corporate bonds | 31,608 | — | 31,608 | — | ||||||||||||
Total assets measured at fair value on a recurring basis | $ | 61,142 | $ | — | $ | 61,142 | $ | — | ||||||||
As of December 31, 2020 | ||||||||||||||||
Investments available for sale: | ||||||||||||||||
Mortgage backed securities | $ | 28,193 | $ | — | $ | 28,193 | $ | — | ||||||||
Government agencies | 2,412 | — | 2,412 | — | ||||||||||||
Corporate bonds | 24,488 | — | 24,488 | — | ||||||||||||
Total assets measured at fair value on a recurring basis | $ | 55,093 | $ | — | $ | 55,093 | $ | — | ||||||||
Carrying | Fair Value Measurements | |||||||||||||||
(Dollars in thousands) | Amount | Level 1 | Level 2 | Level 3 | ||||||||||||
As of September 31, 2020 | ||||||||||||||||
Impaired loans - Commercial | $ | 346 | $ | — | $ | — | $ | 346 | ||||||||
Impaired loans - SBA | $ | 234 | $ | — | $ | — | $ | 234 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets measured at fair value on a non-recurring basis | $ | 580 | $ | — | $ | — | $ | 580 | ||||||||
|
|
|
|
|
|
|
| |||||||||
As of December 31, 2019 | ||||||||||||||||
Impaired loans - Commercial | $ | 2,474 | $ | — | $ | — | $ | 2,474 | ||||||||
Impaired loans - Real estate other | 705 | 705 | ||||||||||||||
Impaired loans - SBA | 296 | 296 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets measured at fair value on a non-recurring basis | $ | 3,475 | $ | — | $ | — | $ | 3,475 | ||||||||
|
|
|
|
|
|
|
|
2020.
Carrying | Fair Value Measurements | |||||||||||||||
(Dollars in thousands) | Amount | Level 1 | Level 2 | Level 3 | ||||||||||||
As of June 30, 2021 | ||||||||||||||||
Impaired loans—Real estate other | $ | 1,000 | $ | — | $ | — | $ | 1,000 | ||||||||
Impaired loans—SBA | 234 | — | — | 234 | ||||||||||||
Total assets measured at fair value on a non-recurring basis | $ | 1,234 | $ | — | $ | — | $ | 1,234 | ||||||||
As of December 31, 2020 | ||||||||||||||||
Impaired loans—SBA | $ | 689 | $ | — | $ | — | $ | 689 | ||||||||
Total assets measured at fair value on a non-recurring basis | $ | 689 | $ | — | $ | — | $ | 689 | ||||||||
In December 2019, a novel strain of coronavirus,
of impairment.
Theend of the borrower’s loan will be fully forgivenforgiveness period
The
Number of | Principal | Number of Loans as a % of | Principal Balance as a % of | |||||||||||||||||||||
(Dollars in millions) | Loans | Balance | PPP Loans | Gross Loans | PPP Loans | Gross Loans | ||||||||||||||||||
Dental services | 284 | $ | 42.8 | 39 | % | 14 | % | 12 | % | 3 | % | |||||||||||||
Contractors | 114 | 138.0 | 16 | % | 6 | % | 38 | % | 10 | % | ||||||||||||||
Other | 333 | 181.2 | 46 | % | 15 | % | 50 | % | 13 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | 731 | $ | 362.0 | 100 | % | 35 | % | 100 | % | 26 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
2021.
Number of | Principal | Number of Loans as a % of | Principal Balance as a % of | |||||||||||||||||||||
(Dollars in millions) | Loans | Balance | PPP Loans | Gross Loans | PPP Loans | Gross Loans | ||||||||||||||||||
Dental services | 292 | $ | 19.4 | 50 | % | 15 | % | 10 | % | 1 | % | |||||||||||||
Contractors | 69 | 60.7 | 12 | % | 4 | % | 31 | % | 5 | % | ||||||||||||||
Other | 220 | 114.4 | 38 | % | 11 | % | 59 | % | 8 | % | ||||||||||||||
Total | 581 | $ | 194.5 | 100 | % | 30 | % | 100 | % | 14 | % | |||||||||||||
Impact of Response to COVID-19 Pandemic
Specific impacts ofPPP had the COVID-19 macroeconomic environmentfollowing impact on ourthe operating results for the thirdsecond quarter and first ninesix months of 2020 include the following:
2021.
Three months ended September 30, | ||||||||
(Dollars in thousands, except per share data) | 2020 | 2019 | ||||||
Income Statement Data: | ||||||||
Interest income | $ | 13,188 | $ | 12,557 | ||||
Interest expense | 2,000 | 2,124 | ||||||
|
|
|
| |||||
Net interest income | 11,188 | 10,433 | ||||||
Provision for credit losses | 850 | 500 | ||||||
|
|
|
| |||||
Net interest income after provision for credit losses | 10,338 | 9,933 | ||||||
Other income | 1,028 | 1,261 | ||||||
Other expenses | 10,545 | 8,399 | ||||||
|
|
|
| |||||
Income before taxes | 821 | 2,795 | ||||||
Income taxes | 326 | 791 | ||||||
|
|
|
| |||||
Net income | $ | 495 | $ | 2,004 | ||||
|
|
|
| |||||
Per Share Data: | ||||||||
Basic earnings per share | $ | 0.06 | $ | 0.25 | ||||
Diluted earnings per share | $ | 0.06 | $ | 0.25 | ||||
Performance Measures: | ||||||||
Return on average assets | 0.10 | % | 0.75 | % | ||||
Return on average tangible equity (1) | 1.55 | % | 6.58 | % | ||||
Net interest margin | 2.41 | % | 4.19 | % | ||||
Efficiency ratio | 86.32 | % | 71.82 | % |
Three months ended | ||||||||
June 30, | ||||||||
(Dollars in thousands, except per share data) | 2021 | 2020 | ||||||
Income Statement Data: | ||||||||
Interest income | $ | 15,179 | $ | 12,781 | ||||
Interest expense | 1,593 | 1,996 | ||||||
Net interest income | 13,586 | 10,785 | ||||||
Provision for credit losses | (1,100 | ) | 2,930 | |||||
Net interest income after provision for credit losses | 14,686 | 7,855 | ||||||
Other income | 956 | 777 | ||||||
Other expenses | 9,835 | 6,440 | ||||||
Income before taxes | 5,807 | 2,192 | ||||||
Income taxes | 1,645 | 642 | ||||||
Net income | $ | 4,162 | $ | 1,550 | ||||
Per Share Data: | ||||||||
Basic earnings per share | $ | 0.51 | $ | 0.19 | ||||
Diluted earnings per share | $ | 0.50 | $ | 0.19 | ||||
Performance Measures: | ||||||||
Return on average assets | 0.87 | % | 0.35 | % | ||||
Return on average tangible equity (1) | 12.42 | % | 4.96 | % | ||||
Net interest margin | 2.98 | % | 2.59 | % | ||||
Efficiency ratio | 67.63 | % | 55.70 | % |
(1) | See discussion in “Management’s Discussion and Analysis of Financial Condition and Results of Operations Non-GAAP Financial Measures” |
Nine months ended September 30, | ||||||||
(Dollars in thousands, except per share data) | 2020 | 2019 | ||||||
Income Statement Data: | ||||||||
Interest income | $ | 38,271 | $ | 36,273 | ||||
Interest expense | 6,117 | 5,918 | ||||||
|
|
|
| |||||
Net interest income | 32,154 | 30,355 | ||||||
Provision for credit losses | 4,180 | 1,326 | ||||||
|
|
|
| |||||
Net interest income after provision for credit losses | 27,974 | 29,029 | ||||||
Other income | 3,096 | 3,100 | ||||||
Other expenses | 27,393 | 23,397 | ||||||
|
|
|
| |||||
Income before taxes | 3,677 | 8,732 | ||||||
Income taxes | 1,159 | 2,310 | ||||||
|
|
|
| |||||
Net income | $ | 2,518 | $ | 6,422 | ||||
|
|
|
| |||||
Per Share Data: | ||||||||
Basic earnings per share | $ | 0.31 | $ | 0.80 | ||||
Diluted earnings per share | $ | 0.31 | $ | 0.79 | ||||
Performance Measures: | ||||||||
Return on average assets | 0.21 | % | 0.83 | % | ||||
Return on average tangible equity (1) | 2.68 | % | 7.31 | % | ||||
Net interest margin | 2.80 | % | 4.21 | % | ||||
Efficiency ratio | 77.71 | % | 69.94 | % |
Six months ended | ||||||||
June 30, | ||||||||
(Dollars in thousands, except per share data) | 2021 | 2020 | ||||||
Income Statement Data: | ||||||||
Interest income | $ | 30,211 | $ | 25,083 | ||||
Interest expense | 3,289 | 4,117 | ||||||
Net interest income | 26,922 | 20,966 | ||||||
Provision for credit losses | (800 | ) | 3,330 | |||||
Net interest income after provision for credit losses | 27,722 | 17,636 | ||||||
Other income | 1,877 | 2,068 | ||||||
Other expenses | 19,915 | 16,847 | ||||||
Income before taxes | 9,684 | 2,857 | ||||||
Income taxes | 2,713 | 834 | ||||||
Net income | $ | 6,971 | $ | 2,023 | ||||
Per Share Data: | ||||||||
Basic earnings per share | $ | 0.85 | $ | 0.25 | ||||
Diluted earnings per share | $ | 0.84 | $ | 0.25 | ||||
Performance Measures: | ||||||||
Return on average assets | 0.73 | % | 0.28 | % | ||||
Return on average tangible equity (1) | 10.59 | % | 3.26 | % | ||||
Net interest margin | 2.96 | % | 3.06 | % | ||||
Efficiency ratio | 69.15 | % | 73.14 | % |
(1) | See discussion in “Management’s Discussion and Analysis of Financial Condition and Results of Operations Non-GAAP Financial Measures” |
(Dollars in thousands) | September 30, 2020 | December 31, 2019 | ||||||
Balance Sheet Data: | ||||||||
Assets | $ | 1,972,751 | $ | 1,152,034 | ||||
Loans, net | $ | 1,340,725 | $ | 941,132 | ||||
Deposits | $ | 1,437,232 | $ | 988,236 | ||||
Shareholders’ equity | $ | 134,595 | $ | 130,256 | ||||
Asset Quality Data: | ||||||||
Allowance for loan losses / gross loans | 0.99 | % | 1.17 | % | ||||
Allowance for loan losses / nonperforming loans | 2307.76 | % | 402.29 | % | ||||
Nonperforming assets / total assets | 0.03 | % | 0.24 | % | ||||
Nonperforming loans / gross loans | 0.04 | % | 0.29 | % | ||||
Capital Adequacy Measures (Bank): | ||||||||
Tier I leverage ratio | 7.95 | % | 10.44 | % | ||||
Tier I risk-based capital ratio | 11.34 | % | 10.38 | % | ||||
Total risk-based capital ratio | 12.91 | % | 11.79 | % |
June 30, | December 31, | |||||||
(Dollars in thousands) | 2021 | 2020 | ||||||
Balance Sheet Data: | ||||||||
Assets | $ | 1,869,063 | $ | 1,905,799 | ||||
Loans, net | $ | 1,338,770 | $ | 1,355,482 | ||||
Deposits | $ | 1,679,772 | $ | 1,532,206 | ||||
Shareholders’ equity | $ | 143,741 | $ | 136,410 | ||||
Asset Quality Data: | ||||||||
Allowance for loan losses / gross loans | 0.98 | % | 1.03 | % | ||||
Allowance for loan losses / nonperforming loans | 1072.93 | % | 6030.34 | % | ||||
Nonperforming assets / total assets | 0.07 | % | 0.01 | % | ||||
Nonperforming loans / gross loans | 0.09 | % | 0.02 | % | ||||
Capital Adequacy Measures: | ||||||||
Tier I leverage ratio | 7.53 | % | 7.49 | % | ||||
Tier I risk-based capital ratio | 9.35 | % | 10.11 | % | ||||
Total risk-based capital ratio | 11.93 | % | 13.22 | % |
Three monthes ended | Nine monthes ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Return on average tangible common equity: | ||||||||||||||||
Net income | $ | 495 | $ | 2,004 | $ | 2,518 | $ | 6,422 | ||||||||
Tangible equity: | ||||||||||||||||
Average equity | $ | 134,240 | $ | 128,367 | $ | 132,982 | $ | 125,075 | ||||||||
Average goodwill / core deposit intangible | 7,570 | 7,619 | 7,581 | 7,624 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Tangible equity | $ | 126,670 | $ | 120,748 | $ | 125,401 | $ | 117,451 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Return on average tangible common equity | 1.55 | % | 6.58 | % | 2.68 | % | 7.31 | % | ||||||||
|
|
|
|
|
|
|
|
September 30, | December 31, | |||||||
(Dollars in thousands) | 2020 | 2019 | ||||||
Allowance for loan loss as a percentage of outstanding loans, excluding PPP loans: | ||||||||
Allowance for loan loss | $ | 13,385 | $ | 11,075 | ||||
Gross loans | 1,355,164 | 949,652 | ||||||
Less: PPP loans | 362,000 | — | ||||||
|
|
|
| |||||
Gross loans, net of PPP loans | 993,164 | 949,652 | ||||||
|
|
|
| |||||
Allowance for loan loss as a percentage of outstanding loans, excluding PPP loans | 1.35 | % | 1.17 | % | ||||
|
|
|
|
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(Dollars in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Return on average tangible common equity: | ||||||||||||||||
Net income | $ | 4,162 | $ | 1,550 | $ | 6,971 | $ | 2,023 | ||||||||
Tangible equity: | ||||||||||||||||
Average equity | $ | 141,919 | $ | 133,348 | $ | 140,251 | $ | 132,346 | ||||||||
Average goodwill / core deposit intangible | 7,540 | 7,581 | 7,545 | 7,586 | ||||||||||||
Tangible equity | $ | 134,379 | $ | 125,767 | $ | 132,706 | $ | 124,760 | ||||||||
Return on average tangible common equity | 12.42 | % | 4.96 | % | 10.59 | % | 3.26 | % | ||||||||
June 30, | December 31, | |||||||
(Dollars in thousands) | 2021 | 2020 | ||||||
Allowance for loan loss as a percentage of outstanding loans, excluding PPP loans: | ||||||||
Allowance for loan loss | $ | 13,240 | $ | 14,111 | ||||
Gross loans | 1,352,639 | 1,369,070 | ||||||
Less: PPP loans | 194,472 | 306,373 | ||||||
Gross loans, net of PPP loans | 1,158,167 | 1,062,697 | ||||||
Allowance for loan loss as a percentage of outstanding loans, excluding PPP loans | 1.14 | % | 1.33 | % | ||||
2020:
$1.0 million.
previously outstanding borrowing arrangements.
2020.
Three months ended September 30, | ||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | ||||||||||||||||||||||
Yields | Interest | Yields | Interest | |||||||||||||||||||||
Average | or | Income/ | Average | or | Income/ | |||||||||||||||||||
Balance | Rates | Expense | Balance | Rates | Expense | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||||||
Loans (1) | $ | 1,313,092 | 3.89 | % | $ | 12,849 | $ | 917,194 | 5.23 | % | $ | 12,087 | ||||||||||||
Federal funds sold | 490,409 | 0.09 | % | 117 | 33,195 | 2.15 | % | 180 | ||||||||||||||||
Investment securities | 39,571 | 2.23 | % | 222 | 36,902 | 3.12 | % | 290 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total interest earning assets | 1,843,072 | 2.85 | % | 13,188 | 987,291 | 5.05 | % | 12,557 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||
Cash and due from banks | 19,789 | 20,562 | ||||||||||||||||||||||
All other assets (2) | 60,140 | 56,032 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
TOTAL | $ | 1,923,001 | $ | 1,063,885 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Demand | $ | 30,877 | 0.14 | % | $ | 11 | $ | 23,292 | 0.10 | % | $ | 6 | ||||||||||||
Money market and savings | 582,694 | 0.81 | % | 1,190 | 393,703 | 1.19 | % | 1,176 | ||||||||||||||||
Time | 174,436 | 0.61 | % | 266 | 137,675 | 2.15 | % | 746 | ||||||||||||||||
Other | 369,764 | 0.57 | % | 533 | 27,037 | 2.88 | % | 196 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total interest-bearing liabilities | 1,157,771 | 0.69 | % | 2,000 | 581,707 | 1.45 | % | 2,124 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | 609,273 | 337,409 | ||||||||||||||||||||||
Accrued expenses and other liabilities | 21,717 | 16,402 | ||||||||||||||||||||||
Shareholders’ equity | 134,240 | 128,367 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
TOTAL | $ | 1,923,001 | $ | 1,063,885 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Net interest income and margin (3) | 2.41 | % | $ | 11,188 | 4.19 | % | $ | 10,433 | ||||||||||||||||
|
|
|
|
|
|
|
|
Three months ended June 30, | ||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||
Yields | Interest | Yields | Interest | |||||||||||||||||||||
Average | or | Income/ | Average | or | Income/ | |||||||||||||||||||
Balance | Rates | Expense | Balance | Rates | Expense | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||||||
Loans (1) | $ | 1,415,729 | 4.17 | % | $ | 14,703 | $ | 1,233,488 | 4.06 | % | $ | 12,466 | ||||||||||||
Federal funds sold | 355,457 | 0.09 | % | 84 | 408,879 | 0.11 | % | 108 | ||||||||||||||||
Investment securities | 58,794 | 2.67 | % | 392 | 33,015 | 2.52 | % | 207 | ||||||||||||||||
Total interest earning assets | 1,829,980 | 3.33 | % | 15,179 | 1,675,382 | 3.07 | % | 12,781 | ||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||
Cash and due from banks | 19,147 | 21,118 | ||||||||||||||||||||||
All other assets (2) | 60,431 | 67,138 | ||||||||||||||||||||||
TOTAL | $ | 1,909,558 | $ | 1,763,638 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Demand | $ | 33,861 | 0.12 | % | $ | 10 | $ | 25,857 | 0.11 | % | $ | 7 | ||||||||||||
Money market and savings | 673,460 | 0.55 | % | 925 | 525,586 | 0.82 | % | 1,075 | ||||||||||||||||
Time | 172,452 | 0.47 | % | 203 | 162,293 | 1.09 | % | 439 | ||||||||||||||||
Other | 139,458 | 1.31 | % | 455 | 292,239 | 0.65 | % | 475 | ||||||||||||||||
Total interest-bearing liabilities | 1,019,231 | 0.63 | % | 1,593 | 1,005,975 | 0.80 | % | 1,996 | ||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | 728,074 | 603,288 | ||||||||||||||||||||||
Accrued expenses and other liabilities | 20,334 | 21,027 | ||||||||||||||||||||||
Shareholders’ equity | 141,919 | 133,348 | ||||||||||||||||||||||
TOTAL | $ | 1,909,558 | $ | 1,763,638 | ||||||||||||||||||||
Net interest income and margin (3) | 2.98 | % | $ | 13,586 | 2.59 | % | $ | 10,785 | ||||||||||||||||
(1) | Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of |
(2) | Other noninterest-earning assets includes the allowance for |
(3) | Net interest margin is net interest income divided by total interest-earning assets. |
Three Months Ended September 30, | ||||||||||||
2020 vs. 2019 | ||||||||||||
Increase (Decrease) Due to | ||||||||||||
Change in: | ||||||||||||
Average | Average | Net | ||||||||||
(Dollars in thousands) | Volume | Rate | Change | |||||||||
Interest income: | ||||||||||||
Loans | $ | 1,343 | $ | (581 | ) | $ | 762 | |||||
Federal funds sold | 109 | (172 | ) | (63 | ) | |||||||
Investment securities | 15 | (83 | ) | (68 | ) | |||||||
Interest expense: | ||||||||||||
Deposits | ||||||||||||
Demand | 3 | 2 | 5 | |||||||||
Money market and savings | 381 | (367 | ) | 14 | ||||||||
Time | 64 | (544 | ) | (480 | ) | |||||||
Other borrowings | 494 | (157 | ) | 337 | ||||||||
|
|
|
|
|
| |||||||
Net interest income | $ | 525 | $ | 230 | $ | 755 | ||||||
|
|
|
|
|
|
Three Months Ended June 30, | ||||||||||||
2021 vs. 2020 | ||||||||||||
Increase (Decrease) Due to | ||||||||||||
Change in: | ||||||||||||
Average | Average | Net | ||||||||||
(Dollars in thousands) | Volume | Rate | Change | |||||||||
Interest income: | ||||||||||||
Loans | $ | 1,893 | $ | 344 | $ | 2,237 | ||||||
Federal funds sold | (13 | ) | (11 | ) | (24 | ) | ||||||
Investment securities | 172 | 13 | 185 | |||||||||
Interest expense: | ||||||||||||
Deposits | �� | |||||||||||
Demand | 2 | 1 | 3 | |||||||||
Money market and savings | 203 | (353 | ) | (150 | ) | |||||||
Time | 12 | (248 | ) | (236 | ) | |||||||
Other borrowings | (498 | ) | 478 | (20 | ) | |||||||
Net interest income | $ | 2,333 | $ | 468 | $ | 2,801 | ||||||
outstanding.
We made provisions
Three Months Ended | ||||||||||||||||
September 30, | Increase (Decrease) | |||||||||||||||
(Dollars in thousands) | 2020 | 2019 | Amount | Percent | ||||||||||||
Service charges and other fees | $ | 779 | $ | 762 | $ | 17 | 2 | % | ||||||||
Gain on sale of SBA loans | — | 212 | (212 | ) | 0 | % | ||||||||||
Earnings on BOLI | 144 | 162 | (18 | ) | -11 | % | ||||||||||
Other | 105 | 125 | (20 | ) | -16 | % | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total noninterest income | $ | 1,028 | $ | 1,261 | $ | (233 | ) | -18 | % | |||||||
|
|
|
|
|
|
|
|
Three Months Ended | ||||||||||||||||
June 30, | Increase (Decrease) | |||||||||||||||
(Dollars in thousands) | 2021 | 2020 | Amount | Percent | ||||||||||||
Service charges and other fees | $ | 638 | $ | 537 | $ | 101 | 19 | % | ||||||||
Earnings on BOLI | 163 | 143 | 20 | 14 | % | |||||||||||
Other | 155 | 97 | 58 | 60 | % | |||||||||||
Total noninterest income | $ | 956 | $ | 777 | $ | 179 | 23 | % | ||||||||
service charges and loan related fees.
Three Months Ended | ||||||||||||||||
September 30, | Increase (Decrease) | |||||||||||||||
(Dollars in thousands) | 2020 | 2019 | Amount | Percent | ||||||||||||
Salaries and benefits | $ | 6,452 | $ | 5,567 | $ | 885 | 16 | % | ||||||||
Premises and equipment | 1,359 | 826 | 533 | 65 | % | |||||||||||
Professional fees | 634 | 396 | 238 | 60 | % | |||||||||||
Data processing | 734 | 525 | 209 | 40 | % | |||||||||||
Other | 1,366 | 1,085 | 281 | 26 | % | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total noninterest expense | $ | 10,545 | $ | 8,399 | $ | 2,146 | 26 | % | ||||||||
|
|
|
|
|
|
|
|
Three Months Ended | ||||||||||||||||
June 30, | Increase (Decrease) | |||||||||||||||
(Dollars in thousands) | 2021 | 2020 | Amount | Percent | ||||||||||||
Salaries and benefits | $ | 6,374 | $ | 2,121 | $ | 4,253 | 201 | % | ||||||||
Premises and equipment | 1,209 | 1,132 | 77 | 7 | % | |||||||||||
Professional fees | 527 | 1,267 | (740 | ) | -58 | % | ||||||||||
Data processing | 484 | 536 | (52 | ) | -10 | % | ||||||||||
Other | 1,241 | 1,384 | (143 | ) | -10 | % | ||||||||||
Total noninterest expense | �� | $ | 9,835 | $ | 6,440 | $ | 3,395 | 53 | % | |||||||
the second quarter of 2020.
2020.
2020:
2020.
Nine months ended September 30, | ||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | ||||||||||||||||||||||
Yields | Interest | Yields | Interest | |||||||||||||||||||||
Average | or | Income/ | Average | or | Income/ | |||||||||||||||||||
Balance | Rates | Expense | Balance | Rates | Expense | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||||||
Loans (1) | $ | 1,166,829 | 4.25 | % | $ | 37,096 | $ | 892,445 | 5.21 | % | $ | 34,784 | ||||||||||||
Federal funds sold | 334,773 | 0.22 | % | 554 | 31,952 | 2.33 | % | 556 | ||||||||||||||||
Investment securities | 33,649 | 2.47 | % | 621 | 39,791 | 3.13 | % | 933 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total interest earning assets | 1,535,251 | 3.33 | % | 38,271 | 964,188 | 5.03 | % | 36,273 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||
Cash and due from banks | 20,098 | 18,647 | ||||||||||||||||||||||
All other assets (2) | 63,970 | 46,788 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
TOTAL | $ | 1,619,319 | $ | 1,029,623 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Demand | $ | 26,842 | 0.12 | % | $ | 25 | $ | 24,750 | 0.09 | % | $ | 17 | ||||||||||||
Money market and savings | 528,456 | 0.93 | % | 3,677 | 395,585 | 1.14 | % | 3,361 | ||||||||||||||||
Time | 153,887 | 1.11 | % | 1,279 | 110,478 | 2.10 | % | 1,734 | ||||||||||||||||
Other | 226,274 | 0.67 | % | 1,136 | 34,685 | 3.11 | % | 806 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total interest-bearing liabilities | 935,459 | 0.87 | % | 6,117 | 565,498 | 1.40 | % | 5,918 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | 529,580 | 332,608 | ||||||||||||||||||||||
Accrued expenses and other liabilities | 21,298 | 6,442 | ||||||||||||||||||||||
Shareholders’ equity | 132,982 | 125,075 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
TOTAL | $ | 1,619,319 | $ | 1,029,623 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Net interest income and margin (3) | 2.80 | % | $ | 32,154 | 4.21 | % | $ | 30,355 | ||||||||||||||||
|
|
|
|
|
|
|
|
Six months ended June 30, | ||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||
Yields | Interest | Yields | Interest | |||||||||||||||||||||
Average | or | Income/ | Average | or | Income/ | |||||||||||||||||||
Balance | Rates | Expense | Balance | Rates | Expense | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||||||
Loans (1) | $ | 1,415,618 | 4.17 | % | $ | 29,287 | $ | 1,092,895 | 4.46 | % | $ | 24,248 | ||||||||||||
Federal funds sold | 362,301 | 0.10 | % | 172 | 256,258 | 0.34 | % | 437 | ||||||||||||||||
Investment securities | 57,109 | 2.66 | % | 752 | 30,655 | 2.61 | % | 398 | ||||||||||||||||
Total interest earning assets | 1,835,028 | 3.32 | % | 30,211 | 1,379,808 | 3.66 | % | 25,083 | ||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||
Cash and due from banks | 20,978 | 14,952 | ||||||||||||||||||||||
All other assets (2) | 60,719 | 69,098 | ||||||||||||||||||||||
TOTAL | $ | 1,916,725 | $ | 1,463,858 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Demand | $ | 34,185 | 0.12 | % | $ | 21 | $ | 24,802 | 0.11 | % | $ | 14 | ||||||||||||
Money market and savings | 659,180 | 0.58 | % | 1,897 | 501,039 | 1.00 | % | 2,486 | ||||||||||||||||
Time | 186,021 | 0.45 | % | 411 | 143,499 | 1.42 | % | 1,015 | ||||||||||||||||
Other | 165,957 | 1.17 | % | 960 | 153,741 | 0.79 | % | 602 | ||||||||||||||||
Total interest-bearing liabilities | 1,045,343 | 0.63 | % | 3,289 | 823,081 | 1.01 | % | 4,117 | ||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | 709,022 | 489,289 | ||||||||||||||||||||||
Accrued expenses and other liabilities | 22,109 | 19,142 | ||||||||||||||||||||||
Shareholders’ equity | 140,251 | 132,346 | ||||||||||||||||||||||
TOTAL | $ | 1,916,725 | $ | 1,463,858 | ||||||||||||||||||||
Net interest income and margin (3) | 2.96 | % | $ | 26,922 | 3.06 | % | $ | 20,966 | ||||||||||||||||
(1) | Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of |
(2) | Other noninterest-earning assets includes the allowance for |
(3) | Net interest margin is net interest income divided by total interest-earning assets. |
Nine Months Ended September 30, | ||||||||||||
2020 vs. 2019 | ||||||||||||
Increase (Decrease) Due to | ||||||||||||
Change in: | ||||||||||||
Average | Average | Net | ||||||||||
(Dollars in thousands) | Volume | Rate | Change | |||||||||
Interest income: | ||||||||||||
Loans | $ | 3,560 | $ | (1,248 | ) | $ | 2,312 | |||||
Federal funds sold | 501 | (503 | ) | (2 | ) | |||||||
Investment securities | (113 | ) | (199 | ) | (312 | ) | ||||||
Interest expense: | ||||||||||||
Deposits | ||||||||||||
Demand | 2 | 6 | 8 | |||||||||
Money market and savings | 921 | (605 | ) | 316 | ||||||||
Time | 333 | (788 | ) | (455 | ) | |||||||
Other borrowings | 962 | (632 | ) | 330 | ||||||||
|
|
|
|
|
| |||||||
Net interest income | $ | 1,730 | $ | 69 | $ | 1,799 | ||||||
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|
Six Months Ended June 30, | ||||||||||||
2021 vs. 2020 | ||||||||||||
Increase (Decrease) Due to | ||||||||||||
Change in: | ||||||||||||
Average | Average | Net | ||||||||||
(Dollars in thousands) | Volume | Rate | Change | |||||||||
Interest income: | ||||||||||||
Loans | $ | 6,677 | $ | (1,638 | ) | $ | 5,039 | |||||
Federal funds sold | 50 | (315 | ) | (265 | ) | |||||||
Investment securities | 348 | 6 | 354 | |||||||||
Interest expense: | ||||||||||||
Deposits | ||||||||||||
Demand | 6 | 1 | 7 | |||||||||
Money market and savings | 455 | (1,044 | ) | (589 | ) | |||||||
Time | 94 | (698 | ) | (604 | ) | |||||||
Other borrowings | 71 | 287 | 358 | |||||||||
Net interest income | $ | 6,449 | $ | (493 | ) | $ | 5,956 | |||||
We made provisions
Nine Months Ended | ||||||||||||||||
September 30, | Increase (Decrease) | |||||||||||||||
(Dollars in thousands) | 2020 | 2019 | Amount | Percent | ||||||||||||
Service charges and other fees | $ | 2,287 | $ | 2,151 | $ | 136 | 6 | % | ||||||||
Gain on sale of SBA loans | — | 235 | (235 | ) | -100 | % | ||||||||||
Earnings on BOLI | 440 | 370 | 70 | 19 | % | |||||||||||
Other | 369 | 344 | 25 | 7 | % | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total noninterest income | $ | 3,096 | $ | 3,100 | $ | (4 | ) | 0 | % | |||||||
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|
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|
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|
Six Months Ended | ||||||||||||||||
June 30, | Increase (Decrease) | |||||||||||||||
(Dollars in thousands) | 2021 | 2020 | Amount | Percent | ||||||||||||
Service charges and other fees | $ | 1,279 | $ | 1,508 | $ | (229 | ) | -15 | % | |||||||
Earnings on BOLI | 325 | 296 | 29 | 10 | % | |||||||||||
Other | 273 | 264 | 9 | 3 | % | |||||||||||
Total noninterest income | $ | 1,877 | $ | 2,068 | $ | (191 | ) | -9 | % | |||||||
Nine Months Ended | ||||||||||||||||
September 30, | Increase (Decrease) | |||||||||||||||
(Dollars in thousands) | 2020 | 2019 | Amount | Percent | ||||||||||||
Salaries and benefits | $ | 15,051 | $ | 14,905 | $ | 146 | 1 | % | ||||||||
Premises and equipment | 3,630 | 2,343 | 1,287 | 55 | % | |||||||||||
Professional fees | 3,013 | 1,703 | 1,310 | 77 | % | |||||||||||
Data processing | 1,796 | 1,365 | 431 | 32 | % | |||||||||||
Other | 3,903 | 3,081 | 822 | 27 | % | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total noninterest expense | $ | 27,393 | $ | 23,397 | $ | 3,996 | 17 | % | ||||||||
|
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|
|
|
Six Months Ended | ||||||||||||||||
June 30, | Increase (Decrease) | |||||||||||||||
(Dollars in thousands) | 2021 | 2020 | Amount | Percent | ||||||||||||
Salaries and benefits | $ | 12,741 | $ | 8,598 | $ | 4,143 | 48 | % | ||||||||
Premises and equipment | 2,406 | 2,271 | 135 | 6 | % | |||||||||||
Professional fees | 1,116 | 2,222 | (1,106 | ) | -50 | % | ||||||||||
Data processing | 1,064 | 1,062 | 2 | 0 | % | |||||||||||
Other | 2,588 | 2,694 | (106 | ) | -4 | % | ||||||||||
Total noninterest expense | $ | 19,915 | $ | 16,847 | $ | 3,068 | 18 | % | ||||||||
Operating expenses2020. Excluding capitalized loan origination costs of $2.7 million and $5.8 million, respectively,
Company.
due to utilizing excess liquidity to repay outstanding borrowing arrangements..
September 30, | December 31, | |||||||
(Dollars in thousands) | 2020 | 2019 | ||||||
Commercial and industrial | 379,400 | 389,746 | ||||||
Real estate - other | 539,541 | 502,929 | ||||||
Real estate - construction and land | 36,596 | 42,519 | ||||||
SBA | 373,921 | 12,830 | ||||||
Other | 25,706 | 1,628 | ||||||
|
|
|
| |||||
Total loans, gross | 1,355,164 | 949,652 | ||||||
Deferred loan origination (fees)/costs, net | (1,054 | ) | 2,555 | |||||
Allowance for loan losses | (13,385 | ) | (11,075 | ) | ||||
|
|
|
| |||||
Total loans, net | 1,340,725 | 941,132 | ||||||
|
|
|
| |||||
Commercial and industrial | 28 | % | 41 | % | ||||
Real estate - other | 40 | % | 53 | % | ||||
Real estate - construction and land | 3 | % | 4 | % | ||||
SBA | 28 | % | 1 | % | ||||
Other | 2 | % | 0 | % | ||||
|
|
|
| |||||
Total loans, gross | 100 | % | 100 | % | ||||
|
|
|
|
June 30, | December 31, | |||||||
(Dollars in thousands) | 2021 | 2020 | ||||||
Commercial and industrial | $ | 425,643 | $ | 414,548 | ||||
Real estate - other | 616,451 | 550,690 | ||||||
Real estate - construction and land | 41,558 | 37,193 | ||||||
SBA | 204,734 | 317,564 | ||||||
Other | 64,253 | 49,075 | ||||||
Total loans, gross | 1,352,639 | 1,369,070 | ||||||
Deferred loan origination (fees)/costs, net | (629 | ) | 523 | |||||
Allowance for loan losses | (13,240 | ) | (14,111 | ) | ||||
Total loans, net | $ | 1,338,770 | $ | 1,355,482 | ||||
Commercial and industrial | 31 | % | 30 | % | ||||
Real estate - other | 46 | % | 40 | % | ||||
Real estate - construction and land | 3 | % | 3 | % | ||||
SBA | 15 | % | 23 | % | ||||
Other | 5 | % | 4 | % | ||||
Total loans, gross | 100 | % | 100 | % | ||||
Over One | ||||||||||||||||||||||||
Due in | Year But | Loans With | ||||||||||||||||||||||
One Year | Less Than | Over | Fixed | Variable | ||||||||||||||||||||
(Dollars in thousands) | Or Less | Five Years | Five Years | Total | Rates (1) | Rates | ||||||||||||||||||
Commercial and industrial | $ | 103,368 | $ | 122,058 | $ | 153,974 | $ | 379,400 | $ | 228,810 | $ | 150,590 | ||||||||||||
Real estate - other | 14,996 | 137,925 | 386,620 | 539,541 | 227,560 | 311,981 | ||||||||||||||||||
Real estate - construction and land | 22,683 | 3,646 | 10,267 | 36,596 | 10,300 | 26,296 | ||||||||||||||||||
SBA | 549 | 363,073 | 10,299 | 373,921 | 362,296 | 11,625 | ||||||||||||||||||
Other | 156 | 983 | 24,567 | 25,706 | 24,431 | 1,275 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
| |||||||||||||
Total loans, gross | $ | 141,752 | $ | 627,685 | $ | 585,727 | $ | 1,355,164 | $ | 853,397 | $ | 501,767 | ||||||||||||
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|
|
Due in One Year Or Less | Over One Year But Less Than Five Years | Over Five Years | Total | Loans With | ||||||||||||||||||||
(Dollars in thousands) | Fixed Rates (1) | Variable Rates | ||||||||||||||||||||||
Commercial and industrial | $ | 112,889 | $ | 169,850 | $ | 142,904 | $ | 425,643 | $ | 215,769 | $ | 209,874 | ||||||||||||
Real estate - other | 28,682 | 200,048 | 387,721 | 616,451 | 306,573 | 309,878 | ||||||||||||||||||
Real estate - construction and land | 27,299 | 10,710 | 3,549 | 41,558 | 5,732 | 35,826 | ||||||||||||||||||
SBA | 71,353 | 125,263 | 8,118 | 204,734 | 194,665 | 10,069 | ||||||||||||||||||
Other | 1,109 | 383 | 62,761 | 64,253 | 62,820 | 1,433 | ||||||||||||||||||
Total loans, gross | $ | 241,332 | $ | 506,254 | $ | 605,053 | $ | 1,352,639 | $ | 785,559 | $ | 567,080 | ||||||||||||
(1) | Excludes variable rate loans on floors |
(Dollars in thousands) Nonaccrual loans Loans over 90 days past due and still accruing Total nonperforming loans Foreclosed assets Total nonperforming assets Performing TDR’s SeptemberJune 30, 2020.2021. A loan is placed on nonaccrual status if there is concern that principal and interest may not be fully collected or if the loan has been past due for a period of 90 days or more, unless the obligation is both well secured and in process of legal collection. When loans are placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Income on nonaccrual loans is subsequently recognized only to the extent that cash is received and the loan’s principal balance is deemed collectible. Loans are returned to accrual status when they are brought current with respect to principal and interest payments and future payments are reasonably assured. Loans in which the borrower is encountering financial difficulties and we have modified the terms of the original loan are evaluated for impairment and classified as TDR loans. See “Part I – Financial Information, Notes to Unaudited Consolidated Financial Statements, Footnote 7 – Business Impact of September 30, December 31, 2020 2019 $ 580 $ 2,753 — — 580 2,753 — — $ 580 $ 2,753 $ — $ 646 June 30,
2021 December 31,
2020 $ 1,234 $ 234 — — 1,234 234 — — $ 1,234 $ 234 $ — $ —
Commercial | Real Estate | |||||||||||||||||||||||
and | Real Estate | Construction | ||||||||||||||||||||||
(Dollars in thousands) | Industrial | Other | and Land | SBA | Other | Total | ||||||||||||||||||
Three months ended September 30, 2020 | ||||||||||||||||||||||||
Beginning balance | $ | 7,851 | $ | 3,332 | $ | 956 | $ | 366 | $ | 19 | $ | 12,524 | ||||||||||||
Provision for loan losses | 772 | 276 | (280 | ) | 79 | 3 | 850 | |||||||||||||||||
Charge-offs | — | — | — | — | — | — | ||||||||||||||||||
Recoveries | 11 | — | — | — | — | 11 | ||||||||||||||||||
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|
|
|
|
|
| |||||||||||||
Ending balance | $ | 8,634 | $ | 3,608 | $ | 676 | $ | 445 | $ | 22 | $ | 13,385 | ||||||||||||
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Three months ended September 30, 2019 | ||||||||||||||||||||||||
Beginning balance | $ | 7,654 | $ | 2,688 | $ | 945 | $ | 199 | $ | 15 | $ | 11,501 | ||||||||||||
Provision for loan losses | 208 | 418 | (68 | ) | (58 | ) | — | 500 | ||||||||||||||||
Charge-offs | (1,604 | ) | — | — | — | — | (1,604 | ) | ||||||||||||||||
Recoveries | 15 | — | — | — | — | 15 | ||||||||||||||||||
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|
|
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| |||||||||||||
Ending balance | $ | 6,273 | $ | 3,106 | $ | 877 | $ | 141 | $ | 15 | $ | 10,412 | ||||||||||||
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Nine months ended September 30, 2020 | ||||||||||||||||||||||||
Beginning balance | $ | 6,708 | $ | 3,281 | $ | 1,022 | $ | 50 | $ | 14 | $ | 11,075 | ||||||||||||
Provision for loan losses | 3,688 | 327 | (346 | ) | 503 | 8 | 4,180 | |||||||||||||||||
Charge-offs | (1,868 | ) | — | — | (108 | ) | — | (1,976 | ) | |||||||||||||||
Recoveries | 106 | — | — | — | — | 106 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
| |||||||||||||
Ending balance | $ | 8,634 | $ | 3,608 | $ | 676 | $ | 445 | $ | 22 | $ | 13,385 | ||||||||||||
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| |||||||||||||
Nine months ended September 30, 2019 | ||||||||||||||||||||||||
Beginning balance | $ | 5,401 | $ | 3,677 | $ | 1,524 | $ | 172 | $ | 26 | $ | 10,800 | ||||||||||||
Provision for loan losses | 2,449 | (571 | ) | (647 | ) | 106 | (11 | ) | 1,326 | |||||||||||||||
Charge-offs | (1,603 | ) | — | — | (137 | ) | — | (1,740 | ) | |||||||||||||||
Recoveries | 26 | — | — | — | — | 26 | ||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
| |||||||||||||
Ending balance | $ | 6,273 | $ | 3,106 | $ | 877 | $ | 141 | $ | 15 | $ | 10,412 | ||||||||||||
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(Dollars in thousands) | Commercial and Industrial | Real Estate Other | Real Estate Construction and Land | SBA | Other | Total | ||||||||||||||||||
Three months ended June 30, 2021 | ||||||||||||||||||||||||
Beginning balance | $ | 9,231 | $ | 3,957 | $ | 798 | $ | 575 | $ | 16 | $ | 14,577 | ||||||||||||
Provision for loan losses | (1,139 | ) | 112 | (101 | ) | 20 | 8 | (1,100 | ) | |||||||||||||||
Charge-offs | — | — | — | (278 | ) | — | (278 | ) | ||||||||||||||||
Recoveries | 41 | — | — | — | — | 41 | ||||||||||||||||||
Ending balance | $ | 8,133 | $ | 4,069 | $ | 697 | $ | 317 | $ | 24 | $ | 13,240 | ||||||||||||
Three months ended June 30, 2020 | ||||||||||||||||||||||||
Beginning balance | $ | 7,843 | $ | 2,661 | $ | 730 | $ | 321 | $ | 10 | $ | 11,565 | ||||||||||||
Provision for loan losses | 1,871 | 671 | 226 | 153 | 9 | 2,930 | ||||||||||||||||||
Charge-offs | (1,868 | ) | — | — | (108 | ) | — | (1,976 | ) | |||||||||||||||
Recoveries | 5 | — | — | — | — | 5 | ||||||||||||||||||
Ending balance | $ | 7,851 | $ | 3,332 | $ | 956 | $ | 366 | $ | 19 | $ | 12,524 | ||||||||||||
Six months ended June 30, 2021 | ||||||||||||||||||||||||
Beginning balance | $ | 8,923 | $ | 3,877 | $ | 681 | $ | 604 | $ | 26 | $ | 14,111 | ||||||||||||
Provision for loan losses | (997 | ) | 192 | 16 | (9 | ) | (2 | ) | (800 | ) | ||||||||||||||
Charge-offs | — | — | — | (278 | ) | — | (278 | ) | ||||||||||||||||
Recoveries | 207 | — | — | — | — | 207 | ||||||||||||||||||
Ending balance | $ | 8,133 | $ | 4,069 | $ | 697 | $ | 317 | $ | 24 | $ | 13,240 | ||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||
Beginning balance | $ | 6,708 | $ | 3,281 | $ | 1,022 | $ | 50 | $ | 14 | $ | 11,075 | ||||||||||||
Provision for loan losses | 2,916 | 51 | (66 | ) | 424 | 5 | 3,330 | |||||||||||||||||
Charge-offs | (1,868 | ) | — | — | (108 | ) | — | (1,976 | ) | |||||||||||||||
Recoveries | 95 | — | — | — | — | 95 | ||||||||||||||||||
Ending balance | $ | 7,851 | $ | 3,332 | $ | 956 | $ | 366 | $ | 19 | $ | 12,524 | ||||||||||||
Gross | Gross | Estimated | ||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
At September 30, 2020: | ||||||||||||||||
Mortgage backed securities | $ | 31,815 | $ | 881 | $ | (47 | ) | $ | 32,649 | |||||||
Government agencies | 2,444 | — | (5 | ) | 2,439 | |||||||||||
Corporate bonds | 15,535 | 323 | (40 | ) | 15,818 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total available for sale securities | $ | 49,794 | $ | 1,204 | $ | (92 | ) | $ | 50,906 | |||||||
|
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|
|
|
|
|
| |||||||||
At December 31, 2019: | ||||||||||||||||
Mortgage backed securities | $ | 20,291 | $ | 436 | $ | (5 | ) | $ | 20,722 | |||||||
Government agencies | 7,824 | 9 | — | 7,833 | ||||||||||||
Corporate bonds | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total available for sale securities | $ | 28,115 | $ | 445 | $ | (5 | ) | $ | 28,555 | |||||||
|
|
|
|
|
|
|
|
2020.
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
At June 30, 2021: | ||||||||||||||||
Mortgage backed securities | $ | 26,706 | $ | 513 | $ | (97) | $ | 27,122 | ||||||||
Government agencies | 2,375 | 37 | — | 2,412 | ||||||||||||
Corporate bonds | 31,306 | 574 | (272 | ) | 31,608 | |||||||||||
Total available for sale securities | $ | 60,387 | $ | 1,124 | $ | (369) | $ | 61,142 | ||||||||
At December 31, 2020: | ||||||||||||||||
Mortgage backed securities | $ | 27,541 | $ | 669 | $ | (17) | $ | 28,193 | ||||||||
Government agencies | 2,418 | — | (6) | 2,412 | ||||||||||||
Corporate bonds | 24,224 | 434 | (170) | 24,488 | ||||||||||||
Total available for sale securities | $ | 54,183 | $ | 1,103 | $ | (193) | $ | 55,093 | ||||||||
2021.
(Dollars in thousands) | Balance | % of Total | ||||||
At September 30, 2020: | ||||||||
Demand noninterest-bearing | $ | 633,726 | 44 | % | ||||
Demand interest-bearing | 32,680 | 2 | % | |||||
Money market and savings | 582,953 | 41 | % | |||||
Time | 187,873 | 13 | % | |||||
|
|
|
| |||||
Total deposits | $ | 1,437,232 | 100 | % | ||||
|
|
|
| |||||
At December 31, 2019: | ||||||||
Demand noninterest-bearing | $ | 387,267 | 39 | % | ||||
Demand interest-bearing | 25,178 | 3 | % | |||||
Money market and savings | 455,436 | 46 | % | |||||
Time | 120,355 | 12 | % | |||||
|
|
|
| |||||
Total deposits | $ | 988,236 | 100 | % | ||||
|
|
|
|
(Dollars in thousands) | Balance | % of Total | ||||||
At June 30, 2021: | ||||||||
Demand noninterest-bearing | $ | 791,580 | 47% | |||||
Demand interest-bearing | 36,268 | 2% | ||||||
Money market and savings | 674,390 | 40% | ||||||
Time | 177,534 | 11% | ||||||
Total deposits | $ | 1,679,772 | 100% | |||||
At December 31, 2020: | ||||||||
Demand noninterest-bearing | $ | 673,100 | 44% | |||||
Demand interest-bearing | 34,869 | 2% | ||||||
Money market and savings | 623,603 | 41% | ||||||
Time | 200,634 | 13% | ||||||
Total deposits | $ | 1,532,206 | 100% | |||||
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. The material weakness we identified relates to the need for improved precision in the review of aspects of our SEC filings and financial reporting. Specifically, we did not have effective processes and procedures in place (1) to formally document management’s review of our financial statements and footnotes included in our SEC filings to ensure timeliness and accuracy of filings; (2) to consistently use checklists regarding Generally Accepted Accounting Principles and SEC disclosure requirements as part of the SEC filing process to ensure that required disclosures are complete and accurate; (3) to identify subsequent events during an open subsequent period necessary to ensure proper disclosure; and (4) to develop, maintain and review on a regular basis a listing of related parties, as defined by SEC Regulation S-K. While this deficiency did not result in a restatement of any previously reported interim consolidated financial statements, our management concluded there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements may not be prevented or detected on a timely basis. The material weakness was initially identified during the preparation of our financial statements for the year ended December 31, 2019. Management is in the process of addressing this weakness, which primarily includes the development and implementation of formalized procedures and controls as well as an increase in the capacity of management in this area. The remediation of this material weakness is ongoing and may necessitate implementation of additional measures. The material weakness will only be considered remediated when these controls have been performing as designed for a sufficient period of time.
Exhibit | Description of Exhibit | |
31.1 | Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.2 | Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
32.1 | Certification of Principal Executive Officer Pursuant to Section 906 of the Public Company Accounting Reform and Investor Protections Act of 2002 | |
32.2 | Certification of Principal Financial Officer Pursuant to Section 906 of the Public Company Accounting Reform and Investor Protections Act of 2002 | |
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | Inline XBRL Taxonomy Extension Labels Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
Dated: November 13, 2020August 12, 2021 By: Steven E. Shelton President and Chief Executive Officer (Principal Executive Officer) Dated: November 13, 2020August 12, 2021 By: Thomas A. Sa Senior Executive Vice President Chief Financial Officer (Principal Financial and Accounting Officer)
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