| Georgia | | | 6022 | | | 47-2528408 | |
| (State or other jurisdiction of incorporation or organization) | | | (Primary Standard Industrial Classification Code Number) | | | (I.R.S. Employer Identification No.) | |
| Mark C. Kanaly Kyle G. Healy David S. Park Alston & Bird LLP 1201 West Peachtree Street, Suite 4900 Atlanta, Georgia 30309 (404) 881-7000 | | | Farid Tan President and Chief Financial Officer MetroCity Bankshares, Inc. 5114 Buford Highway Doraville, Georgia 30340 (770) 455-4989 | | | Peter G. Weinstock Beth A. Whitaker Hunton Andrews Kurth LLP 1445 Ross Avenue, Suite 3700 Dallas, Texas 75202 (214) 979-3000 | |
| Large accelerated filer ☐ | | | Accelerated filer ☐ | |
| Non-accelerated filer ☒ | | | Smaller reporting company ☒ | |
| | | | Emerging growth company ☒ | |
| | | | | | | | | | | | | |
Title of Each Class of Securities to Be Registered | | | Proposed maximum aggregate offering price(1)(2) | | | Amount of registration fee | | ||||||
Common Stock, $0.01 par value per share | | | | $ | 40,000,000 | | | | | $ | 4,848.00 | | |
| | | Per share | | | Total | | ||||||
Initial public offering price of our common stock | | | | $ | | | | | $ | | | ||
Underwriting discounts and commissions(1) | | | | $ | | | | | | $ | | | |
Proceeds to us, before expenses | | | | $ | | | | | $ | | | ||
Proceeds to selling shareholders, before expenses | | | | $ | | | | | | $ | | | |
| Keefe, Bruyette & Woods | | | Raymond James | |
| A Stifel Company | | | | |
| Hovde Group, LLC | |
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| | | | | F-1 | | |
| | | Three-Year CAGR from December 31, 2015 to December 31, 2018 | | |||||||||||||||||||||||||||
| | | | | | | | | Nationwide Peer Group | | | Ethnic Peer Group | | ||||||||||||||||||
| | | MetroCity | | | 75th Percentile | | | Median | | | 75th Percentile | | | Median | | |||||||||||||||
Total Assets | | | | | 28.9% | | | | | | 16.5% | | | | | | 10.4% | | | | | | 20.5% | | | | | | 17.6% | | |
Total Loans | | | | | 28.4% | | | | | | 17.7% | | | | | | 13.6% | | | | | | 20.8% | | | | | | 17.1% | | |
Total Deposits | | | | | 30.7% | | | | | | 18.1% | | | | | | 11.0% | | | | | | 21.3% | | | | | | 16.1% | | |
Total Shareholders’ Equity | | | | | 23.5% | | | | | | 24.3% | | | | | | 11.5% | | | | | | 27.2% | | | | | | 18.9% | | |
| | | Three-Year CAGR from December 31, 2015 to December 31, 2018 | | |||||||||||||||||||||||||||
| | | | | | | | | Nationwide Peer Group | | | Ethnic Peer Group | | ||||||||||||||||||
| | | MetroCity | | | 75th Percentile | | | Median | | | 75th Percentile | | | Median | | |||||||||||||||
Net Interest Income | | | | | 25.0% | | | | | | 17.7% | | | | | | 12.5% | | | | | | 22.2% | | | | | | 21.2% | | |
Noninterest Income | | | | | 37.2% | | | | | | 15.7% | | | | | | 5.4% | | | | | | 14.4% | | | | | | 6.4% | | |
Noninterest Expense | | | | | 28.1% | | | | | | 14.1% | | | | | | 8.4% | | | | | | 16.3% | | | | | | 13.4% | | |
Net Income | | | | | 35.6% | | | | | | 30.8% | | | | | | 20.9% | | | | | | 33.7% | | | | | | 26.5% | | |
| | For the Year-to-Date Period Ending on the Most Recent Financial Quarter Available, | | | For the Year-to-Date Period Ending on the Most Recent Financial Quarter Available, | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | Nationwide Peer Group | | Ethnic Peer Group | | | | | | | | Nationwide Peer Group | | Ethnic Peer Group | | ||||||||||||||||||||||||||||||||||||||||||
| | MetroCity | | 75th Percentile | | Median | | 75th Percentile | | Median | | | MetroCity | | 75th Percentile | | Median | | 75th Percentile | | Median | | ||||||||||||||||||||||||||||||||||||||||
Return on Average Assets | | | | 2.94% | | | | | 1.35% | | | | | 1.14% | | | | | 1.61% | | | | | 1.53% | | | | | | 2.94% | | | | | 1.35% | | | | | 1.14% | | | | | 1.61% | | | | | 1.53% | | | ||||||||||
Return on Average Equity | | | | 25.46% | | | | | 12.23% | | | | | 9.76% | | | | | 13.13% | | | | | 12.47% | | | | | | 25.46% | | | | | 12.23% | | | | | 9.76% | | | | | 13.13% | | | | | 12.47% | | | ||||||||||
Net Interest Margin | | | | 4.30% | | | | | 4.04% | | | | | 3.65% | | | | | 4.08% | | | | | 3.72% | | | | | | 4.30% | | | | | 4.04% | | | | | 3.65% | | | | | 4.08% | | | | | 3.72% | | | ||||||||||
Efficiency Ratio | | | | 40.3% | | | | | 57.5% | | | | | 62.2% | | | | | 45.3% | | | | | 50.8% | | | | | | 40.3% | | | | | 57.5% | | | | | 62.2% | | | | | 45.3% | | | | | 50.8% | | | ||||||||||
Net Interest Income to Average Assets | | | | 2.02% | | | | | 3.77% | | | | | 3.41% | | | | | 3.98% | | | | | 3.52% | | | | | | 4.04% | | | | | 3.77% | | | | | 3.41% | | | | | 3.98% | | | | | 3.52% | | | ||||||||||
Noninterest Income to Average Assets | | | | 1.31% | | | | | 1.00% | | | | | 0.67% | | | | | 0.64% | | | | | 0.43% | | | | | | 2.62% | | | | | 1.00% | | | | | 0.67% | | | | | 0.64% | | | | | 0.43% | | | ||||||||||
Noninterest Expense to Average Assets | | | | 1.34% | | | | | 2.25% | | | | | 2.67% | | | | | 1.74% | | | | | 1.98% | | | | | | 2.69% | | | | | 2.25% | | | | | 2.67% | | | | | 1.74% | | | | | 1.98% | | | ||||||||||
Noninterest Income/Revenue | | | | 39.3% | | | | | 22.8% | | | | | 16.3% | | | | | 14.2% | | | | | 11.1% | | | | | | 39.3% | | | | | 22.8% | | | | | 16.3% | | | | | 14.2% | | | | | 11.1% | | |
| | | For the Year-to-Date Period Ending on the Most Recent Financial Quarter Available, | | |||||||||||||||||||||||||||
| | | | | | | | | Nationwide Peer Group | | | Ethnic Peer Group | | ||||||||||||||||||
| | | MetroCity | | | 75th Percentile | | | Median | | | 75th Percentile | | | Median | | |||||||||||||||
Nonperforming Assets to Loans and OREO | | | | | 1.41% | | | | | | 0.51% | | | | | | 0.89% | | | | | | 0.16% | | | | | | 0.36% | | |
ALL to Loans Held for Investment | | | | | 0.54% | | | | | | 1.11% | | | | | | 0.94% | | | | | | 0.96% | | | | | | 0.92% | | |
Net Charge-offs to Average Loans | | | | | 0.03% | | | | | | 0.00% | | | | | | 0.04% | | | | | | (0.00%) | | | | | | 0.02% | | |
| | | Summary Demographic Information | | |||||||||||||||||||||||||||||||||||||||
| | | Population | | | Median Household Income | | | | | | | | ||||||||||||||||||||||||||||||
MSA Name | | | 2019 (actual) | | | 2014 – 2019 Growth | | | 2019 – 2024 Proj. Growth | | | 2019 ($) | | | 2014 – 2019 Growth | | | 2019 – 2024 Proj. Growth | | | Number of Businesses | | |||||||||||||||||||||
Atlanta-Sandy Springs-Alpharetta, GA | | | | | 6,017,552 | | | | | | 8.0% | | | | | | 6.5% | | | | | | 68,974 | | | | | | 31.3% | | | | | | 11.8% | | | | | | 221,070 | | |
Auburn-Opelika, AL | | | | | 165,585 | | | | | | 8.7% | | | | | | 5.8% | | | | | | 50,561 | | | | | | 22.6% | | | | | | 8.1% | | | | | | 4,681 | | |
Dallas-Fort Worth-Arlington, TX | | | | | 7,575,979 | | | | | | 10.0% | | | | | | 7.7% | | | | | | 69,458 | | | | | | 22.4% | | | | | | 7.6% | | | | | | 240,876 | | |
Houston-The Woodlands-Sugar Land, TX | | | | | 7,092,836 | | | | | | 11.6% | | | | | | 8.0% | | | | | | 65,702 | | | | | | 16.2% | | | | | | 2.4% | | | | | | 213,685 | | |
Montgomery, AL | | | | | 374,026 | | | | | | (0.7%) | | | | | | 0.7% | | | | | | 51,310 | | | | | | 9.3% | | | | | | 8.9% | | | | | | 15,237 | | |
New York-Newark-Jersey City, NY-NJ-PA | | | | | 20,432,620 | | | | | | 2.2% | | | | | | 2.1% | | | | | | 77,981 | | | | | | 20.8% | | | | | | 10.2% | | | | | | 810,883 | | |
Tampa-St. Petersburg-Clearwater, FL | | | | | 3,171,289 | | | | | | 9.9% | | | | | | 6.8% | | | | | | 55,732 | | | | | | 27.1% | | | | | | 10.8% | | | | | | 112,371 | | |
Washington-Arlington-Alexandria, DC-VA-MD-WV | | | | | 6,311,930 | | | | | | 5.6% | | | | | | 5.2% | | | | | | 102,260 | | | | | | 11.3% | | | | | | 7.0% | | | | | | 219,675 | | |
United States of America | | | | | 329,236,175 | | | | | | 3.8% | | | | | | 3.6% | | | | | | 63,174 | | | | | | 22.5% | | | | | | 8.8% | | | | | | 12,492,759 | | |
| | | As of and for the Six Months Ended June 30, | | | As of and for the Year Ended December 31, | | ||||||||||||||||||||||||||||||
| | | 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | ||||||||||||||||||
| | | (dollars in thousands, except per share data) | | |||||||||||||||||||||||||||||||||
Income Statement Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income | | | | $ | 40,680 | | | | | $ | 35,090 | | | | | $ | 72,879 | | | | | $ | 60,514 | | | | | $ | 43,566 | | | | | $ | 33,370 | | |
Interest expense | | | | | 10,628 | | | | | | 6,273 | | | | | | 14,675 | | | | | | 8,619 | | | | | | 5,238 | | | | | | 3,583 | | |
Net interest income | | | | | 30,052 | | | | | | 28,817 | | | | | | 58,204 | | | | | | 51,895 | | | | | | 38,327 | | | | | | 29,787 | | |
Provision for loan losses | | | | | — | | | | | | 871 | | | | | | 1,237 | | | | | | 3,058 | | | | | | — | | | | | | — | | |
Noninterest income | | | | | 19,532 | | | | | | 19,360 | | | | | | 37,609 | | | | | | 32,405 | | | | | | 20,247 | | | | | | 14,261 | | |
Noninterest expense | | | | | 19,998 | | | | | | 17,670 | | | | | | 38,575 | | | | | | 31,192 | | | | | | 26,159 | | | | | | 18,005 | | |
Income tax expense | | | | | 7,894 | | | | | | 7,891 | | | | | | 14,667 | | | | | | 18,153 | | | | | | 12,200 | | | | | | 9,431 | | |
Net income | | | | | 21,692 | | | | | | 21,745 | | | | | | 41,334 | | | | | | 31,897 | | | | | | 20,216 | | | | | | 16,613 | | |
Per Share Data(4): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic income per share | | | | $ | 0.90 | | | | | $ | 0.90 | | | | | $ | 1.71 | | | | | $ | 1.34 | | | | | $ | 0.87 | | | | | $ | 0.73 | | |
Diluted income per share | | | | $ | 0.89 | | | | | $ | 0.89 | | | | | $ | 1.69 | | | | | $ | 1.32 | | | | | $ | 0.86 | | | | | $ | 0.73 | | |
Dividends per share | | | | $ | 0.20 | | | | | $ | 0.18 | | | | | $ | 0.38 | | | | | $ | 0.23 | | | | | $ | 0.16 | | | | | $ | 0.12 | | |
Book value per share (at period end) | | | | $ | 7.58 | | | | | $ | 6.30 | | | | | $ | 6.95 | | | | | $ | 5.61 | | | | | $ | 4.54 | | | | | $ | 3.90 | | |
Shares of common stock outstanding | | | | | 24,305,378 | | | | | | 24,241,206 | | | | | | 24,258,062 | | | | | | 24,074,882 | | | | | | 23,642,510 | | | | | | 22,973,584 | | |
Weighted average diluted shares | | | | | 24,427,642 | | | | | | 24,397,508 | | | | | | 24,475,698 | | | | | | 24,139,006 | | | | | | 23,704,334 | | | | | | 22,469,762 | | |
Balance Sheet Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross loans held for investment | | | | $ | 1,190,911 | | | | | $ | 1,094,229 | | | | | $ | 1,145,714 | | | | | $ | 1,068,593 | | | | | $ | 804,318 | | | | | $ | 570,755 | | |
Loans held for sale | | | | | 69,686 | | | | | | 74,827 | | | | | | 56,865 | | | | | | 31,802 | | | | | | 161,890 | | | | | | — | | |
Allowance for loan losses | | | | | 6,483 | | | | | | 6,766 | | | | | | 6,645 | | | | | | 6,925 | | | | | | 5,471 | | | | | | 5,527 | | |
Total assets | | | | | 1,524,509 | | | | | | 1,345,821 | | | | | | 1,432,650 | | | | | | 1,288,927 | | | | | | 1,100,063 | | | | | | 671,380 | | |
Deposits | | | | | 1,296,187 | | | | | | 1,163,298 | | | | | | 1,244,232 | | | | | | 1,019,984 | | | | | | 870,867 | | | | | | 562,850 | | |
Shareholders’ equity | | | | | 184,317 | | | | | | 152,751 | | | | | | 168,608 | | | | | | 135,115 | | | | | | 107,261 | | | | | | 89,560 | | |
| | As of and for the Six Months Ended June 30, | | As of and for the Year Ended December 31, | | | As of and for the Six Months Ended June 30, | | As of and for the Year Ended December 31, | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | 2019 | | 2018 | | 2018 | | 2017 | | 2016 | | 2015 | | | 2019 | | 2018 | | 2018 | | 2017 | | 2016 | | 2015 | | ||||||||||||||||||||||||||||||||||||||||||||||||
| | (dollars in thousands, except per share data) | | | (dollars in thousands, except per share data) | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance Ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||
Return on average assets(1) | | | | 2.94% | | | | | 3.30% | | | | | 3.01% | | | | | 2.77% | | | | | 2.42% | | | | | 2.61% | | | | | | 2.94% | | | | | 3.30% | | | | | 3.01% | | | | | 2.77% | | | | | 2.42% | | | | | 2.61% | | | ||||||||||||
Return on average equity(1) | | | | 25.46 | | | | | 31.51 | | | | | 27.95 | | | | | 27.24 | | | | | 21.19 | | | | | 20.88 | | | | | | 25.46 | | | | | 31.51 | | | | | 27.95 | | | | | 27.24 | | | | | 21.19 | | | | | 20.88 | | | ||||||||||||
Dividend payout ratio | | | | 22.57 | | | | | 20.16 | | | | | 22.48 | | | | | 17.05 | | | | | 18.65 | | | | | 16.04 | | | | | | 22.57 | | | | | 20.16 | | | | | 22.48 | | | | | 17.05 | | | | | 18.65 | | | | | 16.04 | | | ||||||||||||
Yield on total loans | | | | 6.15 | | | | | 5.92 | | | | | 5.92 | | | | | 5.91 | | | | | 5.94 | | | | | 6.20 | | | | | | 6.15 | | | | | 5.92 | | | | | 5.92 | | | | | 5.91 | | | | | 5.94 | | | | | 6.20 | | | ||||||||||||
Yield on average earning assets | | | | 5.81 | | | | | 5.63 | | | | | 5.60 | | | | | 5.55 | | | | | 5.54 | | | | | 5.74 | | | | | | 5.81 | | | | | 5.63 | | | | | 5.60 | | | | | 5.55 | | | | | 5.54 | | | | | 5.74 | | | ||||||||||||
Cost of average interest bearing liabilities | | | | 2.16 | | | | | 1.41 | | | | | 1.60 | | | | | 1.11 | | | | | 0.97 | | | | | 0.88 | | | | | | 2.16 | | | | | 1.41 | | | | | 1.60 | | | | | 1.11 | | | | | 0.97 | | | | | 0.88 | | | ||||||||||||
Cost of deposits | | | | 2.17 | | | | | 1.39 | | | | | 1.60 | | | | | 1.09 | | | | | 0.96 | | | | | 0.85 | | | | | | 2.17 | | | | | 1.39 | | | | | 1.60 | | | | | 1.09 | | | | | 0.96 | | | | | 0.85 | | | ||||||||||||
Net interest margin | | | | 4.30 | | | | | 4.62 | | | | | 4.48 | | | | | 4.76 | | | | | 4.87 | | | | | 4.98 | | | | | | 4.30 | | | | | 4.62 | | | | | 4.48 | | | | | 4.76 | | | | | 4.87 | | | | | 4.98 | | | ||||||||||||
Efficiency ratio(2) | | | | 40.33 | | | | | 35.55 | | | | | 40.26 | | | | | 37.00 | | | | | 44.66 | | | | | 40.88 | | | | | | 40.33 | | | | | 35.55 | | | | | 40.26 | | | | | 37.00 | | | | | 44.66 | | | | | 40.88 | | | ||||||||||||
Asset quality data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||
Asset Quality Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||
Net charge-offs to average loans held for investment(1) | | | | 0.03% | | | | | 0.19% | | | | | 0.14% | | | | | 0.17% | | | | | 0.01% | | | | | 0.09% | | | | | | 0.03% | | | | | 0.19% | | | | | 0.14% | | | | | 0.17% | | | | | 0.01% | | | | | 0.09% | | | ||||||||||||
Nonperforming assets to gross loans and other real estate owned | | | | 1.41 | | | | | 0.73 | | | | | 0.78 | | | | | 1.00 | | | | | 0.49 | | | | | 1.07 | | | | | | 1.41 | | | | | 0.73 | | | | | 0.78 | | | | | 1.00 | | | | | 0.49 | | | | | 1.07 | | | ||||||||||||
ALL to nonperforming loans | | | | 38.67 | | | | | 84.88 | | | | | 74.12 | | | | | 69.06 | | | | | 153.94 | | | | | 111.79 | | | | | | 38.67 | | | | | 84.88 | | | | | 74.12 | | | | | 69.06 | | | | | 153.94 | | | | | 111.79 | | | ||||||||||||
ALL to loans held for investment | | | | 0.54 | | | | | 0.62 | | | | | 0.58 | | | | | 0.65 | | | | | 0.68 | | | | | 0.97 | | | | | | 0.54 | | | | | 0.62 | | | | | 0.58 | | | | | 0.65 | | | | | 0.68 | | | | | 0.97 | | | ||||||||||||
Balance sheet and capital ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||
Balance Sheet and Capital Ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||
Gross loans held for investment to deposits | | | | 91.88% | | | | | 94.06% | | | | | 92.08% | | | | | 104.77% | | | | | 92.36% | | | | | 101.40% | | | | | | 91.88% | | | | | 94.06% | | | | | 92.08% | | | | | 104.77% | | | | | 92.36% | | | | | 101.40% | | | ||||||||||||
Noninterest bearing deposits to deposits | | | | 23.87 | | | | | 24.66 | | | | | 24.05 | | | | | 25.52 | | | | | 24.74 | | | | | 27.01 | | | | | | 23.87 | | | | | 24.66 | | | | | 24.05 | | | | | 25.52 | | | | | 24.74 | | | | | 27.01 | | | ||||||||||||
Tangible common equity to tangible assets(3) | | | | 12.09 | | | | | 11.35 | | | | | 11.77 | | | | | 10.48 | | | | | 9.75 | | | | | 13.33 | | | | | | 12.09 | | | | | 11.35 | | | | | 11.77 | | | | | 10.48 | | | | | 9.75 | | | | | 13.33 | | | ||||||||||||
Leverage ratio | | | | 11.67 | | | | | 10.79 | | | | | 11.14 | | | | | 10.76 | | | | | 10.19 | | | | | 13.20 | | | | | | 11.67 | | | | | 10.79 | | | | | 11.14 | | | | | 10.76 | | | | | 10.19 | | | | | 13.20 | | | ||||||||||||
Common equity tier 1 ratio | | | | 17.99 | | | | | 16.17 | | | | | 17.44 | | | | | 16.24 | | | | | 14.16 | | | | | 18.26 | | | | | | 17.99 | | | | | 16.17 | | | | | 17.44 | | | | | 16.24 | | | | | 14.16 | | | | | 18.26 | | | ||||||||||||
Tier 1 risk-based capital ratio | | | | 17.99 | | | | | 16.17 | | | | | 17.44 | | | | | 16.24 | | | | | 14.16 | | | | | 18.26 | | | | | | 17.99 | | | | | 16.17 | | | | | 17.44 | | | | | 16.24 | | | | | 14.16 | | | | | 18.26 | | | ||||||||||||
Total risk-based capital ratio | | | | 18.66 | | | | | 16.93 | | | | | 18.16 | | | | | 17.08 | | | | | 14.89 | | | | | 19.40 | | | | | | 18.66 | | | | | 16.93 | | | | | 18.16 | | | | | 17.08 | | | | | 14.89 | | | | | 19.40 | | |
| | As of June 30, 2019 | | | As of June 30, 2019 | | ||||||||||||||||||||
(Dollars in thousands) | | Actual | | As adjusted | | | Actual | | As adjusted | | ||||||||||||||||
Shareholders’ Equity: | | | | | | | | | | | | | | | | | | | | | | | ||||
Preferred stock, $0.01 par value per share, 10,000,000 shares authorized; none issued or outstanding | | | | — | | | | | — | | | | | | — | | | | | — | | | ||||
Common stock, $0.01 par value per share, 40,000,000 shares authorized; 24,305,378 shares outstanding; shares outstanding, as adjusted | | | $ | 243 | | | | $ | | | | |||||||||||||||
Common stock, $0.01 par value per share, 40,000,000 shares authorized; 24,305,378 shares outstanding; 25,305,378 shares outstanding, as adjusted | | | $ | 243 | | | | $ | 253 | | | |||||||||||||||
Additional paid-in-capital | | | | 39,096 | | | | | | | | | | | 39,096 | | | | | 52,134 | | | ||||
Retained earnings | | | | 144,989 | | | | | | | | | | | 144,989 | | | | | 144,989 | | | ||||
Accumulated other comprehensive loss | | | | (11) | | | | | | | | | | | (11) | | | | | (11) | | | ||||
Total shareholders’ equity | | | $ | 184,317 | | | | $ | | | | | | $ | 184,317 | | | | $ | 197,365 | | | ||||
Capital ratios: | | | | | | | | | | | | | | | | | | | | | | | ||||
Tier 1 capital to average assets | | | | 11.67% | | | | | % | | | | | | 11.67% | | | | | 12.43% | | | ||||
Tier 1 capital to risk-weighted assets | | | | 17.99% | | | | | % | | | | | | 17.99% | | | | | 19.28% | | | ||||
Total capital to risk-weighted assets | | | | 18.66% | | | | | % | | | | | | 18.66% | | | | | 19.94% | | | ||||
Common equity Tier 1 capital to risk-weighted assets | | | | 17.99% | | | | | % | | | | | | 17.99% | | | | | 19.28% | | | ||||
Total shareholder’s equity to total assets | | | | 12.09% | | | | | % | | | | | | 12.09% | | | | | 12.84% | | |
| Public offering price per share | | | | | | | | $ | | | Public offering price per share | | | | | $ | 15.50 | | | |||||
| Net tangible book value per share at June 30, 2019 | | | | | | | | $ | 7.58 | | | Net tangible book value per share at June 30, 2019 | | | | | $ | 7.58 | | | ||||
| Increase in net tangible book value per share attributable to this offering | | | $ | | | | | | | | | Increase in net tangible book value per share attributable to this offering | | | | $ | 0.22 | | | |||||
| As adjusted net tangible book value per share after this offering | | | | | | | | $ | | | | As adjusted net tangible book value per share after this offering | | | | | $ | 7.80 | | | ||||
| Dilution in net tangible book value per share to new investors | | | | | | | | $ | | | | Dilution in net tangible book value per share to new investors | | | | | $ | 7.70 | | |
| | Shares purchased | | Total consideration | | | Average price per share | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Shares purchased | | Total consideration | | | Average price per share | | | Number | | Percent | | Amount(1) | | Percent | | |||||||||||||||||||||||||||||||||||||||||||||
| | Number | | Percent | | Amount | | Percent | | | (Dollars in thousands, except per share amounts) | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders as of June 30, 2019 | | | | | | | | | % | | | | $ | | | | | | % | | | | $ | | | | | | | 24,305,378 | | | | | 96.05% | | | | $ | 39,339 | | | | | 71.74% | | | | $ | 1.62 | | | ||||||||||
Investors in this offering | | | | | | | | % | | | | | | | | | % | | | | | | | | | | 1,000,000 | | | | | 3.95% | | | | | 15,500 | | | | | 28.26% | | | | | 15.50 | | | |||||||||||||
Total | | | | | | | | | 100% | | | | | | | | | $ | 100% | | | | $ | | | | | | | 25,305,378 | | | | | 100% | | | | $ | 54,839 | | | | | 100% | | | | $ | 2.17 | | |
| | | High(1) | | | Low(1) | | | Dividend declared per share(1) | | |||||||||
Year ended December 31, 2019 | | | | | |||||||||||||||
First Quarter | | | | $ | 33.00 | | | | | $ | 24.75 | | | | | $ | 0.20 | | |
Second Quarter | | | | $ | 29.00 | | | | | $ | 27.50 | | | | | $ | 0.20 | | |
Third Quarter (to August 30, 2019) | | | | $ | 28.00 | | | | | $ | 27.28 | | | | | $ | 0.22 | | |
Year ended December 31, 2018 | | | | | |||||||||||||||
First Quarter | | | | $ | 22.00 | | | | | $ | 19.55 | | | | | $ | 0.18 | | |
Second Quarter | | | | $ | 26.00 | | | | | $ | 22.00 | | | | | $ | 0.18 | | |
Third Quarter | | | | $ | 33.00 | | | | | $ | 25.40 | | | | | $ | 0.20 | | |
Fourth Quarter | | | | $ | 33.00 | | | | | $ | 33.00 | | | | | $ | 0.20 | | |
Year ended December 31, 2017 | | | | | |||||||||||||||
First Quarter | | | | $ | 13.50 | | | | | $ | 12.00 | | | | | $ | 0.10 | | |
Second Quarter | | | | $ | 20.00 | | | | | $ | 13.50 | | | | | $ | 0.10 | | |
Third Quarter | | | | $ | 22.00 | | | | | $ | 16.75 | | | | | $ | 0.10 | | |
Fourth Quarter | | | | $ | 20.00 | | | | | $ | 18.25 | | | | | $ | 0.15 | | |
| | | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | | | Weighted average exercise price of outstanding options, warrants and rights (b) | | | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) | | |||||||||
Plan Category | | | | | | | | | | | | | | | | | | | |
Equity compensation plans approved by security holders | | | | | 240,000 | | | | | $ | 12.70 | | | | | | 2,232,372 | | |
Total at December 31, 2018 | | | | | 240,000 | | | | | $ | 12.70 | | | | | | 2,232,372 | | |
| | | As of and for the Six Months Ended June 30, | | | As of and for the Year Ended December 31, | | ||||||||||||||||||||||||||||||
| | | 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | ||||||||||||||||||
| | | (dollars in thousands, except per share data) | | |||||||||||||||||||||||||||||||||
Income Statement Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income | | | | $ | 40,680 | | | | | $ | 35,090 | | | | | $ | 72,879 | | | | | $ | 60,514 | | | | | $ | 43,566 | | | | | $ | 33,370 | | |
Interest expense | | | | | 10,628 | | | | | | 6,273 | | | | | | 14,675 | | | | | | 8,619 | | | | | | 5,238 | | | | | | 3,583 | | |
Net interest income | | | | | 30,052 | | | | | | 28,817 | | | | | | 58,204 | | | | | | 51,895 | | | | | | 38,327 | | | | | | 29,787 | | |
Provision for loan losses | | | | | — | | | | | | 871 | | | | | | 1,237 | | | | | | 3,058 | | | | | | — | | | | | | — | | |
Noninterest income | | | | | 19,532 | | | | | | 19,360 | | | | | | 37,609 | | | | | | 32,405 | | | | | | 20,247 | | | | | | 14,261 | | |
Noninterest expense | | | | | 19,998 | | | | | | 17,670 | | | | | | 38,575 | | | | | | 31,192 | | | | | | 26,159 | | | | | | 18,005 | | |
Income tax expense | | | | | 7,894 | | | | | | 7,891 | | | | | | 14,667 | | | | | | 18,153 | | | | | | 12,200 | | | | | | 9,431 | | |
Net income | | | | | 21,692 | | | | | | 21,745 | | | | | | 41,334 | | | | | | 31,897 | | | | | | 20,216 | | | | | | 16,613 | | |
Per Share Data(4): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic income per share | | | | $ | 0.90 | | | | | $ | 0.90 | | | | | $ | 1.71 | | | | | $ | 1.34 | | | | | $ | 0.87 | | | | | $ | 0.73 | | |
Diluted income per share | | | | $ | 0.89 | | | | | $ | 0.89 | | | | | $ | 1.69 | | | | | $ | 1.32 | | | | | $ | 0.86 | | | | | $ | 0.73 | | |
Dividends per share | | | | $ | 0.20 | | | | | $ | 0.18 | | | | | $ | 0.38 | | | | | $ | 0.23 | | | | | $ | 0.16 | | | | | $ | 0.12 | | |
Book value per share (at period end) | | | | $ | 7.58 | | | | | $ | 6.30 | | | | | $ | 6.95 | | | | | $ | 5.61 | | | | | $ | 4.54 | | | | | $ | 3.90 | | |
Shares of common stock outstanding | | | | | 24,305,378 | | | | | | 24,241,206 | | | | | | 24,258,062 | | | | | | 24,074,882 | | | | | | 23,642,510 | | | | | | 22,973,584 | | |
Weighted average diluted shares | | | | | 24,427,642 | | | | | | 24,397,508 | | | | | | 24,475,698 | | | | | | 24,139,006 | | | | | | 23,704,334 | | | | | | 22,469,762 | | |
Balance Sheet Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross loans held for investment | | | | $ | 1,190,911 | | | | | $ | 1,094,229 | | | | | $ | 1,145,714 | | | | | $ | 1,068,593 | | | | | $ | 804,318 | | | | | $ | 570,755 | | |
Loans held for sale | | | | | 69,686 | | | | | | 74,827 | | | | | | 56,865 | | | | | | 31,802 | | | | | | 161,890 | | | | | | — | | |
Allowance for loan losses | | | | | 6,483 | | | | | | 6,766 | | | | | | 6,645 | | | | | | 6,925 | | | | | | 5,471 | | | | | | 5,527 | | |
Total assets | | | | | 1,524,509 | | | | | | 1,345,821 | | | | | | 1,432,650 | | | | | | 1,288,927 | | | | | | 1,100,063 | | | | | | 671,380 | | |
Deposits | | | | | 1,296,187 | | | | | | 1,163,298 | | | | | | 1,244,232 | | | | | | 1,019,984 | | | | | | 870,867 | | | | | | 562,850 | | |
Shareholders’ equity | | | | | 184,317 | | | | | | 152,751 | | | | | | 168,608 | | | | | | 135,115 | | | | | | 107,261 | | | | | | 89,560 | | |
| | | As of and for the Six Months Ended June 30, | | | As of and for the Year Ended December 31, | | ||||||||||||||||||||||||||||||
| | | 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | ||||||||||||||||||
| | | (dollars in thousands, except per share data) | | |||||||||||||||||||||||||||||||||
Tangible common equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total shareholders’ equity | | | | $ | 184,317 | | | | | $ | 152,751 | | | | | $ | 168,608 | | | | | $ | 135,115 | | | | | $ | 107,261 | | | | | $ | 89,560 | | |
Less: Core deposit intangibles and other intangibles | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 9 | | | | | | 66 | | |
Tangible common equity | | | | $ | 184,317 | | | | | $ | 152,751 | | | | | $ | 168,608 | | | | | $ | 135,115 | | | | | $ | 107,252 | | | | | $ | 89,494 | | |
| | | As of and for the Six Months Ended June 30, | | | As of and for the Year Ended December 31, | | ||||||||||||||||||||||||||||||
| | | 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | ||||||||||||||||||
| | | (dollars in thousands, except per share data) | | |||||||||||||||||||||||||||||||||
Tangible assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | | | $ | 1,524,509 | | | | | $ | 1,345,821 | | | | | $ | 1,432,650 | | | | | $ | 1,288,927 | | | | | $ | 1,100,063 | | | | | $ | 671,380 | | |
Less: Core deposit intangibles and other intangibles | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 9 | | | | | | 66 | | |
Tangible assets | | | | $ | 1,524,509 | | | | | $ | 1,345,821 | | | | | $ | 1,432,650 | | | | | $ | 1,288,927 | | | | | $ | 1,100,054 | | | | | $ | 671,314 | | |
Tangible common equity to tangible assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tangible common equity | | | | $ | 184,317 | | | | | $ | 152,751 | | | | | $ | 168,808 | | | | | $ | 135,115 | | | | | $ | 107,252 | | | | | $ | 89,494 | | |
Tangible assets | | | | | 1,524,509 | | | | | | 1,345,821 | | | | | | 1,432,650 | | | | | | 1,288,927 | | | | | | 1,100,054 | | | | | | 671,314 | | |
Tangible common equity to tangible assets | | | | | 12.09% | | | | | | 11.35% | | | | | | 11.77% | | | | | | 10.48% | | | | | | 9.75% | | | | | | 13.33% | | |
Adjusted allowance for loan losses to adjust gross loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross Loans | | | | $ | 1,190,911 | | | | | $ | 1,094,229 | | | | | $ | 1,145,714 | | | | | $ | 1,068,593 | | | | | $ | 804,318 | | | | | $ | 570,755 | | |
Less: Auto loan pools | | | | | 1,450 | | | | | | 5,042 | | | | | | 2,641 | | | | | | 8,695 | | | | | | 18,856 | | | | | | 27,749 | | |
Adjusted gross loans excluding auto loan pools | | | | | 1,189,461 | | | | | | 1,089,187 | | | | | | 1,143,073 | | | | | | 1,059,898 | | | | | | 785,462 | | | | | | 543,006 | | |
Allowance for loan losses | | | | | 6,483 | | | | | | 6,766 | | | | | | 6,645 | | | | | | 6,925 | | | | | | 5,471 | | | | | | 5,527 | | |
Less: Allowance for loan losses allocated to auto loan pools | | | | | 190 | | | | | | 650 | | | | | | 384 | | | | | | 1,166 | | | | | | — | | | | | | — | | |
Adjusted allowance for loan losses | | | | | 6,293 | | | | | | 6,116 | | | | | | 6,261 | | | | | | 5,759 | | | | | | 5,471 | | | | | | 5,527 | | |
Allowance for loan losses to gross loans | | | | | 0.54% | | | | | | 0.62% | | | | | | 0.58% | | | | | | 0.65% | | | | | | 0.68% | | | | | | 0.97% | | |
Adjusted allowance for loan losses to adjusted Gross loans | | | | | 0.53% | | | | | | 0.56% | | | | | | 0.55% | | | | | | 0.54% | | | | | | 0.70% | | | | | | 1.02% | | |
Adjusted net charge-offs to average loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net charge-offs | | | | $ | 162 | | | | | $ | 1,030 | | | | | $ | 1,517 | | | | | $ | 1,603 | | | | | $ | 56 | | | | | $ | 459 | | |
Less: Net charge-offs attributable to auto loan pools | | | | | 159 | | | | | | 1,026 | | | | | | 1,412 | | | | | | 1,531 | | | | | | — | | | | | | — | | |
Adjusted net charge-offs | | | | | 3 | | | | | | 4 | | | | | | 105 | | | | | | 72 | | | | | | 56 | | | | | | 459 | | |
Average gross loans | | | | | 1,190,422 | | | | | | 1,096,726 | | | | | | 1,110,451 | | | | | | 966,707 | | | | | | 679,733 | | | | | | 525,961 | | |
Net charge-offs to average gross loans(1) | | | | | 0.03% | | | | | | 0.19% | | | | | | 0.14% | | | | | | 0.17% | | | | | | 0.01% | | | | | | 0.09% | | |
Adjusted net charge-offs to average gross loans(1) | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.01% | | | | | | 0.01% | | | | | | 0.01% | | | | | | 0.09% | | |
| | | As of and for the Six Months Ended June 30, | | | As of and for the Year Ended December 31, | | ||||||||||||||||||||||||||||||
| | | 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | ||||||||||||||||||
| | | (dollars in thousands, except per share data) | | |||||||||||||||||||||||||||||||||
Performance Ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Return on average assets(1) | | | | | 2.94% | | | | | | 3.30% | | | | | | 3.01% | | | | | | 2.77% | | | | | | 2.42% | | | | | | 2.61% | | |
Return on average equity(1) | | | | | 25.46 | | | | | | 31.51 | | | | | | 27.95 | | | | | | 27.24 | | | | | | 21.19 | | | | | | 20.88 | | |
Dividend payout ratio | | | | | 22.57 | | | | | | 20.16 | | | | | | 22.48 | | | | | | 17.05 | | | | | | 18.65 | | | | | | 16.04 | | |
Yield on total loans | | | | | 6.15 | | | | | | 5.92 | | | | | | 5.92 | | | | | | 5.91 | | | | | | 5.94 | | | | | | 6.20 | | |
Yield on average earning assets | | | | | 5.81 | | | | | | 5.63 | | | | | | 5.60 | | | | | | 5.55 | | | | | | 5.54 | | | | | | 5.74 | | |
Cost of average interest bearing liabilities | | | | | 2.16 | | | | | | 1.41 | | | | | | 1.60 | | | | | | 1.11 | | | | | | 0.97 | | | | | | 0.88 | | |
Cost of deposits | | | | | 2.17 | | | | | | 1.39 | | | | | | 1.60 | | | | | | 1.09 | | | | | | 0.96 | | | | | | 0.85 | | |
Net interest margin | | | | | 4.30 | | | | | | 4.62 | | | | | | 4.48 | | | | | | 4.76 | | | | | | 4.87 | | | | | | 4.98 | | |
Efficiency ratio(2) | | | | | 40.33 | | | | | | 35.55 | | | | | | 40.26 | | | | | | 37.00 | | | | | | 44.66 | | | | | | 40.88 | | |
Asset Quality Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net charge-offs to average loans held for investment(1) | | | | | 0.03% | | | | | | 0.19% | | | | | | 0.14% | | | | | | 0.17% | | | | | | 0.01% | | | | | | 0.09% | | |
Nonperforming assets to gross loans and other real estate owned | | | | | 1.41 | | | | | | 0.73 | | | | | | 0.78 | | | | | | 1.00 | | | | | | 0.49 | | | | | | 1.07 | | |
ALL to nonperforming loans | | | | | 38.67 | | | | | | 84.88 | | | | | | 74.12 | | | | | | 69.06 | | | | | | 153.94 | | | | | | 111.79 | | |
ALL to loans held for investment | | | | | 0.54 | | | | | | 0.62 | | | | | | 0.58 | | | | | | 0.65 | | | | | | 0.68 | | | | | | 0.97 | | |
Balance Sheet and Capital Ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross loans held for investment to deposits | | | | | 91.88% | | | | | | 94.06% | | | | | | 92.08% | | | | | | 104.77% | | | | | | 92.36% | | | | | | 101.40% | | |
Noninterest bearing deposits to deposits | | | | | 23.87 | | | | | | 24.66 | | | | | | 24.05 | | | | | | 25.52 | | | | | | 24.74 | | | | | | 27.01 | | |
Tangible common equity to tangible assets(3) | | | | | 12.09 | | | | | | 11.35 | | | | | | 11.77 | | | | | | 10.48 | | | | | | 9.75 | | | | | | 13.33 | | |
Leverage ratio | | | | | 11.67 | | | | | | 10.79 | | | | | | 11.14 | | | | | | 10.76 | | | | | | 10.19 | | | | | | 13.20 | | |
Common equity tier 1 ratio | | | | | 17.99 | | | | | | 16.17 | | | | | | 17.44 | | | | | | 16.24 | | | | | | 14.16 | | | | | | 18.26 | | |
Tier 1 risk-based capital ratio | | | | | 17.99 | | | | | | 16.17 | | | | | | 17.44 | | | | | | 16.24 | | | | | | 14.16 | | | | | | 18.26 | | |
Total risk-based capital ratio | | | | | 18.66 | | | | | | 16.93 | | | | | | 18.16 | | | | | | 17.08 | | | | | | 14.89 | | | | | | 19.40 | | |
| | | As of June 30, 2019 | | |||||||||
(Dollars in thousands) | | | Actual | | | As adjusted | | ||||||
Shareholders’ Equity: | | | | | | | | | | | | | |
Preferred stock, $0.01 par value per share, 10,000,000 shares authorized; none issued or outstanding | | | | | — | | | | | | — | | |
Common stock, $0.01 par value per share, 40,000,000 shares authorized; 24,305,378 shares outstanding; 25,305,378 shares outstanding, as adjusted | | | | $ | 243 | | | | | $ | 253 | | |
Additional paid-in-capital | | | | | 39,096 | | | | | | 52,134 | | |
Retained earnings | | | | | 144,989 | | | | | | 144,989 | | |
Accumulated other comprehensive loss | | | | | (11) | | | | | | (11) | | |
Total shareholders’ equity | | | | $ | 184,317 | | | | | $ | 197,365 | | |
Capital ratios: | | | | | | | | | | | | | |
Tier 1 capital to average assets | | | | | 11.67% | | | | | | 12.43% | | |
Tier 1 capital to risk-weighted assets | | | | | 17.99% | | | | | | 19.28% | | |
Total capital to risk-weighted assets | | | | | 18.66% | | | | | | 19.94% | | |
Common equity Tier 1 capital to risk-weighted assets | | | | | 17.99% | | | | | | 19.28% | | |
Total shareholder’s equity to total assets | | | | | 12.09% | | | | | | 12.84% | | |
| Public offering price per share | | | | | | | $ | 15.50 | | |
| Net tangible book value per share at June 30, 2019 | | | | | | | $ | 7.58 | | |
| Increase in net tangible book value per share attributable to this offering | | | | | | $ | 0.22 | | | |
| As adjusted net tangible book value per share after this offering | | | | | | | $ | 7.80 | | |
| Dilution in net tangible book value per share to new investors | | | | | | | $ | 7.70 | | |
| | | Shares purchased | | | Total consideration | | | Average price per share | | |||||||||||||||||||||
| | | Number | | | Percent | | | Amount(1) | | | Percent | | ||||||||||||||||||
| | | (Dollars in thousands, except per share amounts) | | |||||||||||||||||||||||||||
Shareholders as of June 30, 2019 | | | | | 24,305,378 | | | | | | 96.05% | | | | | $ | 39,339 | | | | | | 71.74% | | | | | $ | 1.62 | | |
Investors in this offering | | | | | 1,000,000 | | | | | | 3.95% | | | | | | 15,500 | | | | | | 28.26% | | | | | | 15.50 | | |
Total | | | | | 25,305,378 | | | | | | 100% | | | | | $ | 54,839 | | | | | | 100% | | | | | $ | 2.17 | | |
| | | As of and for the Six Months Ended June 30, | | | As of and for the Year Ended December 31, | | ||||||||||||||||||||||||||||||
| | | 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | ||||||||||||||||||
| | | (dollars in thousands, except per share data) | | |||||||||||||||||||||||||||||||||
Income Statement Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income | | | | $ | 40,680 | | | | | $ | 35,090 | | | | | $ | 72,879 | | | | | $ | 60,514 | | | | | $ | 43,566 | | | | | $ | 33,370 | | |
Interest expense | | | | | 10,628 | | | | | | 6,273 | | | | | | 14,675 | | | | | | 8,619 | | | | | | 5,238 | | | | | | 3,583 | | |
Net interest income | | | | | 30,052 | | | | | | 28,817 | | | | | | 58,204 | | | | | | 51,895 | | | | | | 38,327 | | | | | | 29,787 | | |
Provision for loan losses | | | | | — | | | | | | 871 | | | | | | 1,237 | | | | | | 3,058 | | | | | | — | | | | | | — | | |
Noninterest income | | | | | 19,532 | | | | | | 19,360 | | | | | | 37,609 | | | | | | 32,405 | | | | | | 20,247 | | | | | | 14,261 | | |
Noninterest expense | | | | | 19,998 | | | | | | 17,670 | | | | | | 38,575 | | | | | | 31,192 | | | | | | 26,159 | | | | | | 18,005 | | |
Income tax expense | | | | | 7,894 | | | | | | 7,891 | | | | | | 14,667 | | | | | | 18,153 | | | | | | 12,200 | | | | | | 9,431 | | |
Net income | | | | | 21,692 | | | | | | 21,745 | | | | | | 41,334 | | | | | | 31,897 | | | | | | 20,216 | | | | | | 16,613 | | |
Per Share Data(4): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic income per share | | | | $ | 0.90 | | | | | $ | 0.90 | | | | | $ | 1.71 | | | | | $ | 1.34 | | | | | $ | 0.87 | | | | | $ | 0.73 | | |
Diluted income per share | | | | $ | 0.89 | | | | | $ | 0.89 | | | | | $ | 1.69 | | | | | $ | 1.32 | | | | | $ | 0.86 | | | | | $ | 0.73 | | |
Dividends per share | | | | $ | 0.20 | | | | | $ | 0.18 | | | | | $ | 0.38 | | | | | $ | 0.23 | | | | | $ | 0.16 | | | | | $ | 0.12 | | |
Book value per share (at period end) | | | | $ | 7.58 | | | | | $ | 6.30 | | | | | $ | 6.95 | | | | | $ | 5.61 | | | | | $ | 4.54 | | | | | $ | 3.90 | | |
Shares of common stock outstanding | | | | | 24,305,378 | | | | | | 24,241,206 | | | | | | 24,258,062 | | | | | | 24,074,882 | | | | | | 23,642,510 | | | | | | 22,973,584 | | |
Weighted average diluted shares | | | | | 24,427,642 | | | | | | 24,397,508 | | | | | | 24,475,698 | | | | | | 24,139,006 | | | | | | 23,704,334 | | | | | | 22,469,762 | | |
Balance Sheet Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross loans held for investment | | | | $ | 1,190,911 | | | | | $ | 1,094,229 | | | | | $ | 1,145,714 | | | | | $ | 1,068,593 | | | | | $ | 804,318 | | | | | $ | 570,755 | | |
Loans held for sale | | | | | 69,686 | | | | | | 74,827 | | | | | | 56,865 | | | | | | 31,802 | | | | | | 161,890 | | | | | | — | | |
Allowance for loan losses | | | | | 6,483 | | | | | | 6,766 | | | | | | 6,645 | | | | | | 6,925 | | | | | | 5,471 | | | | | | 5,527 | | |
Total assets | | | | | 1,524,509 | | | | | | 1,345,821 | | | | | | 1,432,650 | | | | | | 1,288,927 | | | | | | 1,100,063 | | | | | | 671,380 | | |
Deposits | | | | | 1,296,187 | | | | | | 1,163,298 | | | | | | 1,244,232 | | | | | | 1,019,984 | | | | | | 870,867 | | | | | | 562,850 | | |
Shareholders’ equity | | | | | 184,317 | | | | | | 152,751 | | | | | | 168,608 | | | | | | 135,115 | | | | | | 107,261 | | | | | | 89,560 | | |
| | | As of and for the Six Months Ended June 30, | | | As of and for the Year Ended December 31, | | ||||||||||||||||||||||||||||||
| | | 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | ||||||||||||||||||
| | | (dollars in thousands, except per share data) | | |||||||||||||||||||||||||||||||||
Performance Ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Return on average assets(1) | | | | | 2.94% | | | | | | 3.30% | | | | | | 3.01% | | | | | | 2.77% | | | | | | 2.42% | | | | | | 2.61% | | |
Return on average equity(1) | | | | | 25.46 | | | | | | 31.51 | | | | | | 27.95 | | | | | | 27.24 | | | | | | 21.19 | | | | | | 20.88 | | |
Dividend payout ratio | | | | | 22.57 | | | | | | 20.16 | | | | | | 22.48 | | | | | | 17.05 | | | | | | 18.65 | | | | | | 16.04 | | |
Yield on total loans | | | | | 6.15 | | | | | | 5.92 | | | | | | 5.92 | | | | | | 5.91 | | | | | | 5.94 | | | | | | 6.20 | | |
Yield on average earning assets | | | | | 5.81 | | | | | | 5.63 | | | | | | 5.60 | | | | | | 5.55 | | | | | | 5.54 | | | | | | 5.74 | | |
Cost of average interest bearing liabilities | | | | | 2.16 | | | | | | 1.41 | | | | | | 1.60 | | | | | | 1.11 | | | | | | 0.97 | | | | | | 0.88 | | |
Cost of deposits | | | | | 2.17 | | | | | | 1.39 | | | | | | 1.60 | | | | | | 1.09 | | | | | | 0.96 | | | | | | 0.85 | | |
Net interest margin | | | | | 4.30 | | | | | | 4.62 | | | | | | 4.48 | | | | | | 4.76 | | | | | | 4.87 | | | | | | 4.98 | | |
Efficiency ratio(2) | | | | | 40.33 | | | | | | 35.55 | | | | | | 40.26 | | | | | | 37.00 | | | | | | 44.66 | | | | | | 40.88 | | |
Asset Quality Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net charge-offs to average loans held for investment(1) | | | | | 0.03% | | | | | | 0.19% | | | | | | 0.14% | | | | | | 0.17% | | | | | | 0.01% | | | | | | 0.09% | | |
Nonperforming assets to gross loans and other real estate owned | | | | | 1.41 | | | | | | 0.73 | | | | | | 0.78 | | | | | | 1.00 | | | | | | 0.49 | | | | | | 1.07 | | |
ALL to nonperforming loans | | | | | 38.67 | | | | | | 84.88 | | | | | | 74.12 | | | | | | 69.06 | | | | | | 153.94 | | | | | | 111.79 | | |
ALL to loans held for investment | | | | | 0.54 | | | | | | 0.62 | | | | | | 0.58 | | | | | | 0.65 | | | | | | 0.68 | | | | | | 0.97 | | |
Balance Sheet and Capital Ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross loans held for investment to deposits | | | | | 91.88% | | | | | | 94.06% | | | | | | 92.08% | | | | | | 104.77% | | | | | | 92.36% | | | | | | 101.40% | | |
Noninterest bearing deposits to deposits | | | | | 23.87 | | | | | | 24.66 | | | | | | 24.05 | | | | | | 25.52 | | | | | | 24.74 | | | | | | 27.01 | | |
Tangible common equity to tangible assets(3) | | | | | 12.09 | | | | | | 11.35 | | | | | | 11.77 | | | | | | 10.48 | | | | | | 9.75 | | | | | | 13.33 | | |
Leverage ratio | | | | | 11.67 | | | | | | 10.79 | | | | | | 11.14 | | | | | | 10.76 | | | | | | 10.19 | | | | | | 13.20 | | |
Common equity tier 1 ratio | | | | | 17.99 | | | | | | 16.17 | | | | | | 17.44 | | | | | | 16.24 | | | | | | 14.16 | | | | | | 18.26 | | |
Tier 1 risk-based capital ratio | | | | | 17.99 | | | | | | 16.17 | | | | | | 17.44 | | | | | | 16.24 | | | | | | 14.16 | | | | | | 18.26 | | |
Total risk-based capital ratio | | | | | 18.66 | | | | | | 16.93 | | | | | | 18.16 | | | | | | 17.08 | | | | | | 14.89 | | | | | | 19.40 | | |
| | | As of June 30, 2019 | | |||||||||
(Dollars in thousands) | | | Actual | | | As adjusted | | ||||||
Shareholders’ Equity: | | | | | | | | | | | | | |
Preferred stock, $0.01 par value per share, 10,000,000 shares authorized; none issued or outstanding | | | | | — | | | | | | — | | |
Common stock, $0.01 par value per share, 40,000,000 shares authorized; 24,305,378 shares outstanding; 25,305,378 shares outstanding, as adjusted | | | | $ | 243 | | | | | $ | 253 | | |
Additional paid-in-capital | | | | | 39,096 | | | | | | 52,134 | | |
Retained earnings | | | | | 144,989 | | | | | | 144,989 | | |
Accumulated other comprehensive loss | | | | | (11) | | | | | | (11) | | |
Total shareholders’ equity | | | | $ | 184,317 | | | | | $ | 197,365 | | |
Capital ratios: | | | | | | | | | | | | | |
Tier 1 capital to average assets | | | | | 11.67% | | | | | | 12.43% | | |
Tier 1 capital to risk-weighted assets | | | | | 17.99% | | | | | | 19.28% | | |
Total capital to risk-weighted assets | | | | | 18.66% | | | | | | 19.94% | | |
Common equity Tier 1 capital to risk-weighted assets | | | | | 17.99% | | | | | | 19.28% | | |
Total shareholder’s equity to total assets | | | | | 12.09% | | | | | | 12.84% | | |
| Public offering price per share | | | | | | | $ | 15.50 | | |
| Net tangible book value per share at June 30, 2019 | | | | | | | $ | 7.58 | | |
| Increase in net tangible book value per share attributable to this offering | | | | | | $ | 0.22 | | | |
| As adjusted net tangible book value per share after this offering | | | | | | | $ | 7.80 | | |
| Dilution in net tangible book value per share to new investors | | | | | | | $ | 7.70 | | |
| | | Shares purchased | | | Total consideration | | | Average price per share | | |||||||||||||||||||||
| | | Number | | | Percent | | | Amount(1) | | | Percent | | ||||||||||||||||||
| | | (Dollars in thousands, except per share amounts) | | |||||||||||||||||||||||||||
Shareholders as of June 30, 2019 | | | | | 24,305,378 | | | | | | 96.05% | | | | | $ | 39,339 | | | | | | 71.74% | | | | | $ | 1.62 | | |
Investors in this offering | | | | | 1,000,000 | | | | | | 3.95% | | | | | | 15,500 | | | | | | 28.26% | | | | | | 15.50 | | |
Total | | | | | 25,305,378 | | | | | | 100% | | | | | $ | 54,839 | | | | | | 100% | | | | | $ | 2.17 | | |
| | | High | | | Low | | | Dividend declared per share | | |||||||||
Year ended December 31, 2019 | | | | | |||||||||||||||
First Quarter | | | | $ | 16.50 | | | | | $ | 12.38 | | | | | $ | 0.10 | | |
Second Quarter | | | | $ | 14.50 | | | | | $ | 13.75 | | | | | $ | 0.10 | | |
Third Quarter (to September 20, 2019) | | | | $ | 17.00 | | | | | $ | 13.64 | | | | | $ | 0.11 | | |
Year ended December 31, 2018 | | | | | |||||||||||||||
First Quarter | | | | $ | 11.00 | | | | | $ | 9.78 | | | | | $ | 0.09 | | |
Second Quarter | | | | $ | 13.00 | | | | | $ | 11.00 | | | | | $ | 0.09 | | |
Third Quarter | | | | $ | 16.50 | | | | | $ | 12.70 | | | | | $ | 0.10 | | |
Fourth Quarter | | | | $ | 16.50 | | | | | $ | 16.50 | | | | | $ | 0.10 | | |
Year ended December 31, 2017 | | | | | |||||||||||||||
First Quarter | | | | $ | 6.75 | | | | | $ | 6.00 | | | | | $ | 0.05 | | |
Second Quarter | | | | $ | 10.00 | | | | | $ | 6.75 | | | | | $ | 0.05 | | |
Third Quarter | | | | $ | 11.00 | | | | | $ | 8.38 | | | | | $ | 0.05 | | |
Fourth Quarter | | | | $ | 10.00 | | | | | $ | 9.13 | | | | | $ | 0.08 | | |
| | | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | | | Weighted average exercise price of outstanding options, warrants and rights (b) | | | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) | | |||||||||
Plan Category | | | | | | | | | | | | | | | | | | | |
Equity compensation plans approved by security holders | | | | | 240,000 | | | | | $ | 12.70 | | | | | | 2,232,372 | | |
Total at December 31, 2018 | | | | | 240,000 | | | | | $ | 12.70 | | | | | | 2,232,372 | | |
| | | As of and for the Six Months Ended June 30, | | | As of and for the Year Ended December 31, | | ||||||||||||||||||||||||||||||
| | | 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | ||||||||||||||||||
| | | (dollars in thousands, except per share data) | | |||||||||||||||||||||||||||||||||
Tangible common equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total shareholders’ equity | | | | $ | 184,317 | | | | | $ | 152,751 | | | | | $ | 168,608 | | | | | $ | 135,115 | | | | | $ | 107,261 | | | | | $ | 89,560 | | |
Less: Core deposit intangibles and other intangibles | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 9 | | | | | | 66 | | |
Tangible common equity | | | | $ | 184,317 | | | | | $ | 152,751 | | | | | $ | 168,608 | | | | | $ | 135,115 | | | | | $ | 107,252 | | | | | $ | 89,494 | | |
| | | As of and for the Six Months Ended June 30, | | | As of and for the Year Ended December 31, | | ||||||||||||||||||||||||||||||
| | | 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | ||||||||||||||||||
| | | (dollars in thousands, except per share data) | | |||||||||||||||||||||||||||||||||
Tangible assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | | | $ | 1,524,509 | | | | | $ | 1,345,821 | | | | | $ | 1,432,650 | | | | | $ | 1,288,927 | | | | | $ | 1,100,063 | | | | | $ | 671,380 | | |
Less: Core deposit intangibles and other intangibles | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 9 | | | | | | 66 | | |
Tangible assets | | | | $ | 1,524,509 | | | | | $ | 1,345,821 | | | | | $ | 1,432,650 | | | | | $ | 1,288,927 | | | | | $ | 1,100,054 | | | | | $ | 671,314 | | |
Tangible common equity to tangible assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tangible common equity | | | | $ | 184,317 | | | | | $ | 152,751 | | | | | $ | 168,808 | | | | | $ | 135,115 | | | | | $ | 107,252 | | | | | $ | 89,494 | | |
Tangible assets | | | | | 1,524,509 | | | | | | 1,345,821 | | | | | | 1,432,650 | | | | | | 1,288,927 | | | | | | 1,100,054 | | | | | | 671,314 | | |
Tangible common equity to tangible assets | | | | | 12.09% | | | | | | 11.35% | | | | | | 11.77% | | | | | | 10.48% | | | | | | 9.75% | | | | | | 13.33% | | |
Adjusted allowance for loan losses to adjusted gross loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross Loans | | | | $ | 1,190,911 | | | | | $ | 1,094,229 | | | | | $ | 1,145,714 | | | | | $ | 1,068,593 | | | | | $ | 804,318 | | | | | $ | 570,755 | | |
Less: Auto loan pools | | | | | 1,450 | | | | | | 5,042 | | | | | | 2,641 | | | | | | 8,695 | | | | | | 18,856 | | | | | | 27,749 | | |
Adjusted gross loans excluding auto loan pools | | | | | 1,189,461 | | | | | | 1,089,187 | | | | | | 1,143,073 | | | | | | 1,059,898 | | | | | | 785,462 | | | | | | 543,006 | | |
Allowance for loan losses | | | | | 6,483 | | | | | | 6,766 | | | | | | 6,645 | | | | | | 6,925 | | | | | | 5,471 | | | | | | 5,527 | | |
Less: Allowance for loan losses allocated to auto loan pools | | | | | 190 | | | | | | 650 | | | | | | 384 | | | | | | 1,166 | | | | | | — | | | | | | — | | |
Adjusted allowance for loan losses | | | | | 6,293 | | | | | | 6,116 | | | | | | 6,261 | | | | | | 5,759 | | | | | | 5,471 | | | | | | 5,527 | | |
Allowance for loan losses to gross loans | | | | | 0.54% | | | | | | 0.62% | | | | | | 0.58% | | | | | | 0.65% | | | | | | 0.68% | | | | | | 0.97% | | |
Adjusted allowance for loan losses to adjusted Gross loans | | | | | 0.53% | | | | | | 0.56% | | | | | | 0.55% | | | | | | 0.54% | | | | | | 0.70% | | | | | | 1.02% | | |
Adjusted net charge-offs to average loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net charge-offs | | | | $ | 162 | | | | | $ | 1,030 | | | | | $ | 1,517 | | | | | $ | 1,603 | | | | | $ | 56 | | | | | $ | 459 | | |
Less: Net charge-offs attributable to auto loan pools | | | | | 159 | | | | | | 1,026 | | | | | | 1,412 | | | | | | 1,531 | | | | | | — | | | | | | — | | |
Adjusted net charge-offs | | | | | 3 | | | | | | 4 | | | | | | 105 | | | | | | 72 | | | | | | 56 | | | | | | 459 | | |
Average gross loans | | | | | 1,190,422 | | | | | | 1,096,726 | | | | | | 1,110,451 | | | | | | 966,707 | | | | | | 679,733 | | | | | | 525,961 | | |
Net charge-offs to average gross loans(1) | | | | | 0.03% | | | | | | 0.19% | | | | | | 0.14% | | | | | | 0.17% | | | | | | 0.01% | | | | | | 0.09% | | |
Adjusted net charge-offs to average gross loans(1) | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.01% | | | | | | 0.01% | | | | | | 0.01% | | | | | | 0.09% | | |
| | Six Months Ended June 30, | | | Six Months Ended June 30, | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | 2019 | | 2018 | | | 2019 | | 2018 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | Average Balance | | Interest and Fees | | Yield/ Rate | | Average Balance | | Interest and Fees | | Yield/ Rate | | | Average Balance | | Interest and Fees | | Yield/ Rate | | Average Balance | | Interest and Fees | | Yield/ Rate | | ||||||||||||||||||||||||||||||||||||||||||||||||
Earning Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||
Federal funds sold and other investments(1) | | | $ | 97,605 | | | | $ | 1,214 | | | | | 2.51% | | | | $ | 63,207 | | | | $ | 690 | | | | | 2.20% | | | | | $ | 97,605 | | | | $ | 1,214 | | | | | 2.51% | | | | $ | 63,207 | | | | $ | 690 | | | | | 2.20% | | | ||||||||||||
Securities purchased under agreements to resell | | | | 15,000 | | | | | 227 | | | | | 3.05 | | | | | 15,000 | | | | | 166 | | | | | 2.23 | | | | | | 15,000 | | | | | 227 | | | | | 3.05 | | | | | 15,000 | | | | | 166 | | | | | 2.23 | | | ||||||||||||
Securities available for sale | | | | 18,693 | | | | | 241 | | | | | 2.60 | | | | | 20,917 | | | | | 257 | | | | | 2.48 | | | | | | 18,693 | | | | | 241 | | | | | 2.60 | | | | | 20,917 | | | | | 257 | | | | | 2.48 | | | ||||||||||||
Total investments | | | | 131,298 | | | | | 1,682 | | | | | 2.58 | | | | | 99,124 | | | | | 1,113 | | | | | 2.26 | | | | | | 131,298 | | | | | 1,682 | | | | | 2.58 | | | | | 99,124 | | | | | 1,113 | | | | | 2.26 | | | ||||||||||||
Construction and development | | | | 34,442 | | | | | 1,143 | | | | | 6.69 | | | | | 46,577 | | | | | 1,343 | | | | | 5.81 | | | | | | 34,442 | | | | | 1,143 | | | | | 6.69 | | | | | 46,577 | | | | | 1,343 | | | | | 5.81 | | | ||||||||||||
Commercial real estate | | | | 443,212 | | | | | 14,899 | | | | | 6.78 | | | | | 387,799 | | | | | 12,200 | | | | | 6.34 | | | | | | 443,212 | | | | | 14,899 | | | | | 6.78 | | | | | 387,799 | | | | | 12,200 | | | | | 6.34 | | | ||||||||||||
Commercial and industrial | | | | 38,129 | | | | | 1,392 | | | | | 7.36 | | | | | 36,781 | | | | | 1,232 | | | | | 6.75 | | | | | | 38,129 | | | | | 1,392 | | | | | 7.36 | | | | | 36,781 | | | | | 1,232 | | | | | 6.75 | | | ||||||||||||
Consumer | | | | 2,383 | | | | | 107 | | | | | 9.05 | | | | | 7,408 | | | | | 235 | | | | | 6.40 | | | | | | 2,383 | | | | | 107 | | | | | 9.05 | | | | | 7,408 | | | | | 235 | | | | | 6.40 | | | ||||||||||||
Residential real estate | | | | 761,216 | | | | | 21,455 | | | | | 5.68 | | | | | 679,527 | | | | | 18,965 | | | | | 5.63 | | | | | | 761,216 | | | | | 21,455 | | | | | 5.68 | | | | | 679,527 | | | | | 18,965 | | | | | 5.63 | | | ||||||||||||
Other | | | | 283 | | | | | 2 | | | | | 1.43 | | | | | 268 | | | | | 6 | | | | | 1.50 | | | | | | 283 | | | | | 2 | | | | | 1.43 | | | | | 268 | | | | | 6 | | | | | 1.50 | | | ||||||||||||
Gross loans(2) | | | | 1,279,665 | | | | | 38,998 | | | | | 6.15 | | | | | 1,158,360 | | | | | 33,977 | | | | | 5.92 | | | | | | 1,279,665 | | | | | 38,998 | | | | | 6.15 | | | | | 1,158,360 | | | | | 33,977 | | | | | 5.92 | | | ||||||||||||
Total earning assets | | | | 1,410,963 | | | | | 40,680 | | | | | 5.81 | | | | | 1,257,484 | | | | | 35,090 | | | | | 5.63 | | | | | | 1,410,963 | | | | $ | 40,680 | | | | | 5.81% | | | | | 1,257,484 | | | | $ | 35,090 | | | | | 5.63% | | | ||||||||||||
Noninterest-earning assets | | | | 78,108 | | | | | | | | | | | | | | | 72,040 | | | | | | | | | | | | | | | | 78,108 | | | | | | | | | | | | | | | 72,040 | | | | | | | | | | | | | ||||||||||||
Total assets | | | $ | 1,489,071 | | | | | | | | | | | | | | $ | 1,329,524 | | | | | | | | | | | | | | | $ | 1,489,071 | | | | | | | | | | | | | | $ | 1,329,524 | | | | | | | | | | | | | ||||||||||||
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||
NOW and savings deposits | | | $ | 53,088 | | | | $ | 92 | | | | | 0.35% | | | | $ | 74,359 | | | | $ | 151 | | | | | 0.41% | | | | | $ | 53,088 | | | | $ | 92 | | | | | 0.35% | | | | $ | 74,359 | | | | $ | 151 | | | | | 0.41% | | | ||||||||||||
Money market deposits | | | | 103,190 | | | | | 1,135 | | | | | 2.22 | | | | | 42,554 | | | | | 161 | | | | | 0.76 | | | | | | 103,190 | | | | | 1,135 | | | | | 2.22 | | | | | 42,554 | | | | | 161 | | | | | 0.76 | | | ||||||||||||
Time deposits | | | | 820,912 | | | | | 9,275 | | | | | 2.28 | | | | | 699,204 | | | | | 5,332 | | | | | 1.54 | | | | | | 820,912 | | | | | 9,275 | | | | | 2.28 | | | | | 699,204 | | | | | 5,332 | | | | | 1.54 | | | ||||||||||||
Total interest-bearing deposits | | | | 977,190 | | | | | 10,502 | | | | | 2.17 | | | | | 816,117 | | | | | 5,644 | | | | | 1.39 | | | | | | 977,190 | | | | | 10,502 | | | | | 2.17 | | | | | 816,117 | | | | | 5,644 | | | | | 1.39 | | | ||||||||||||
Borrowings | | | | 13,628 | | | | | 126 | | | | | 1.86 | | | | | 83,468 | | | | | 629 | | | | | 1.52 | | | | | | 13,628 | | | | | 126 | | | | | 1.86 | | | | | 83,468 | | | | | 629 | | | | | 1.52 | | | ||||||||||||
Total interest-bearing liabilities | | | $ | 990,818 | | | | $ | 10,628 | | | | | 2.16 | | | | $ | 899,585 | | | | $ | 6,273 | | | | | 1.41 | | | | | $ | 990,818 | | | | $ | 10,628 | | | | | 2.16% | | | | $ | 899,585 | | | | $ | 6,273 | | | | | 1.41% | | | ||||||||||||
Noninterest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||
Noninterest-bearing deposits | | | $ | 299,373 | | | | | | | | | | | | | | $ | 273,792 | | | | | | | | | | | | | | | $ | 299,373 | | | | | | | | | | | | | | $ | 273,792 | | | | | | | | | | | | | ||||||||||||
Other noninterest-bearing liabilities | | | | 27,064 | | | | | | | | | | | | | | | 16,967 | | | | | | | | | | | | | | | | 27,064 | | | | | | | | | | | | | | | 16,967 | | | | | | | | | | | | | ||||||||||||
Total noninterest-bearing liabilities | | | | 326,437 | | | | | | | | | | | | | | | 290,759 | | | | | | | | | | | | | | | | 326,437 | | | | | | | | | | | | | | | 290,759 | | | | | | | | | | | | | ||||||||||||
Shareholders’ equity | | | | 171,816 | | | | | | | | | | | | | | | 139,180 | | | | | | | | | | | | | | | | 171,816 | | | | | | | | | | | | | | | 139,180 | | | | | | | | | | | | | ||||||||||||
Total liabilities and shareholders’ equity | | | $ | 1,489,071 | | | | | | | | | | | | | | | | $ | 1,329,524 | | | | | | | | | | | | | | | | | $ | 1,489,071 | | | | | | | | | | | | | | | | $ | 1,329,524 | | | | | | | | | | | | | | | ||||
Net interest income | | | | | | | | $ | 30,052 | | | | | | | | | | | | | | $ | 28,817 | | | | | | | | | | | | | | | $ | 30,052 | | | | | | | | | | | | | | $ | 28,817 | | | | | | | | ||||||||||||
Net interest spread | | | | | | | | | | | | | | 3.65% | | | | | | | | | | | | | | | 4.22% | | | | | | | | | | | | | | | | 3.65% | | | | | | | | | | | | | | | 4.22% | | | ||||||||||||
Net interest margin | | | | | | | | | | | | | | 4.30% | | | | | | | | | | | | | | | 4.62% | | | | | | | | | | | | | | | | 4.30% | | | | | | | | | | | | | | | 4.62% | | |
| | | Six Months Ended June 30, | | | |||||||||||||||||
| | | 2019 over 2018 | | | |||||||||||||||||
| | | Increase (Decrease) Change Due to | | | | | |||||||||||||||
(Dollars in thousands) | | | Average Volume | | | Average Rate | | | Net Interest Variance | | | |||||||||||
Earning Assets: | | | | | | | | | | | | | | | | | | | | | ||
Federal funds sold and other investments(1) | | | | $ | 251 | | | | | $ | 273 | | | | | $ | 524 | | | | ||
Securities purchased under agreements to resell | | | | | — | | | | | | 61 | | | | | | 61 | | | | ||
Securities available for sale | | | | | (27) | | | | | | 11 | | | | | | (16) | | | | ||
Total investments | | | | | 224 | | | | | | 345 | | | | | | 569 | | | | ||
Construction and development | | | | | (384) | | | | | | 184 | | | | | | (200) | | | | ||
Commercial real estate | | | | | 1,410 | | | | | | 1,289 | | | | | | 2,699 | | | | ||
Commercial and industrial | | | | | 47 | | | | | | 113 | | | | | | 160 | | | | ||
Consumer | | | | | (111) | | | | | | (17) | | | | | | (128) | | | | ||
Residential real estate | | | | | 2,217 | | | | | | 273 | | | | | | 2,490 | | | | ||
Other | | | | | — | | | | | | — | | | | | | — | | | | ||
Loans | | | | | 3,179 | | | | | | 1,842 | | | | | | 5,021 | | | | ||
Total earning assets | | | | $ | 3,403 | | | | | $ | 2,187 | | | | | $ | 5,590 | | | | ||
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | ||
NOW and savings deposits | | | | $ | (48) | | | | | $ | (11) | | | | | $ | (59) | | | | ||
Money market deposits | | | | | 415 | | | | | | 559 | | | | | | 974 | | | | ||
Time deposits | | | | | 1,073 | | | | | | 2,870 | | | | | | 3,943 | | | | ||
Total interest-bearing deposits | | | | | 1,440 | | | | | | 3,418 | | | | | | 4,858 | | | | ||
Borrowings | | | | | (744) | | | | | | 241 | | | | | | (503) | | | | ||
Total interest-bearing liabilities | | | | | 696 | | | | | | 3,659 | | | | | | 4,355 | | | | ||
Net interest income | | | | $ | 2,707 | | | | | $ | (1,472) | | | | | $ | 1,235 | | | |
| | | Period Ended June 30, | | |||||||||||||||||||||
(Dollars in thousands) | | | 2019 | | | 2018 | | | Increase (decrease) | | |||||||||||||||
Noninterest Income: | | | | | | | | | | | | | | | | | | | | | | | | | |
Service charges on deposit accounts | | | | $ | 517 | | | | | $ | 520 | | | | | $ | (3) | | | | | | (0.6)% | | |
Other service charges, commissions and fees | | | | | 5,457 | | | | | | 4,876 | | | | | | 581 | | | | | | 11.9 | | |
Gain on sale of residential mortgage loans | | | | | 3,553 | | | | | | 2,350 | | | | | | 1,203 | | | | | | 51.2 | | |
Mortgage servicing income, net | | | | | 4,654 | | | | | | 5,967 | | | | | | (1,313) | | | | | | (22.0) | | |
SBA servicing income, net | | | | | 2,180 | | | | | | 1,912 | | | | | | 268 | | | | | | 14.0 | | |
Gain on sale of SBA loans | | | | | 2,892 | | | | | | 3,418 | | | | | | (526) | | | | | | (15.4) | | |
Other income | | | | | 279 | | | | | | 317 | | | | | | (38) | | | | | | (12.0) | | |
Total | | | | $ | 19,532 | | | | | $ | 19,360 | | | | | $ | 172 | | | | | | 0.9% | | |
| | | Period Ended June 30, | | |||||||||||||||||||||
(Dollars in thousands) | | | 2019 | | | 2018 | | | Increase (decrease) | | |||||||||||||||
Noninterest Expense: | | | | | | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | | $ | 12,353 | | | | | $ | 10,571 | | | | | $ | 1,782 | | | | | | 16.9% | | |
Occupancy | | | | | 2,386 | | | | | | 1,878 | | | | | | 508 | | | | | | 27.1 | | |
Data processing | | | | | 520 | | | | | | 430 | | | | | | 90 | | | | | | 20.9 | | |
Advertising | | | | | 313 | | | | | | 311 | | | | | | 2 | | | | | | 0.6 | | |
Federal deposit insurance | | | | | 192 | | | | | | 218 | | | | | | (26) | | | | | | (11.9) | | |
Other operating | | | | | 4,234 | | | | | | 4,262 | | | | | | (28) | | | | | | (0.7) | | |
Total | | | | $ | 19,998 | | | | | $ | 17,670 | | | | | $ | 2,328 | | | | | | 13.2% | | |
| | | Period Ended June 30, | | |||||||||||||||||||||
(Dollars in thousands) | | | 2019 | | | 2018 | | | Increase (decrease) | | |||||||||||||||
Noninterest Income: | | | | | | | | | | | | | | | | | | | | | | | | | |
Service charges on deposit accounts | | | | $ | 517 | | | | | $ | 520 | | | | | $ | (3) | | | | | | (0.6)% | | |
Other service charges, commissions and fees | | | | | 5,457 | | | | | | 4,876 | | | | | | 581 | | | | | | 11.9 | | |
Gain on sale of residential mortgage loans | | | | | 3,553 | | | | | | 2,350 | | | | | | 1,203 | | | | | | 51.2 | | |
Mortgage servicing income, net | | | | | 4,654 | | | | | | 5,967 | | | | | | (1,313) | | | | | | (22.0) | | |
SBA servicing income, net | | | | | 2,180 | | | | | | 1,912 | | | | | | 268 | | | | | | 14.0 | | |
Gain on sale of SBA loans | | | | | 2,892 | | | | | | 3,418 | | | | | | (526) | | | | | | (15.4) | | |
Other income | | | | | 279 | | | | | | 317 | | | | | | (38) | | | | | | (12.0) | | |
Total | | | | $ | 19,532 | | | | | $ | 19,360 | | | | | $ | 172 | | | | | | 0.9% | | |
| | | Year Ended December 31, | | |||||||||||||||||||||||||||||||||
| | | 2018 | | | 2017 | | ||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Average Balance | | | Interest and Fees | | | Yield/ Rate | | | Average Balance | | | Interest and Fees | | | Yield/ Rate | | ||||||||||||||||||
Earning Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Federal funds sold and other investments(1) | | | | $ | 79,699 | | | | | $ | 1,758 | | | | | | 2.21% | | | | | $ | 57,200 | | | | | $ | 742 | | | | | | 1.30% | | |
Securities purchased under agreements to resell | | | | | 15,000 | | | | | | 372 | | | | | | 2.48 | | | | | | 10,603 | | | | | | 185 | | | | | | 1.74 | | |
Securities available for sale | | | | | 20,174 | | | | | | 503 | | | | | | 2.49 | | | | | | 22,534 | | | | | | 477 | | | | | | 2.12 | | |
Total investments | | | | | 114,873 | | | | | | 2,633 | | | | | | 2.29 | | | | | | 90,337 | | | | | | 1,404 | | | | | | 1.55 | | |
Construction and development | | | | | 46,050 | | | | | | 2,763 | | | | | | 6.00 | | | | | | 46,640 | | | | | | 2,834 | | | | | | 6.08 | | |
Commercial real estate | | | | | 394,770 | | | | | | 25,521 | | | | | | 6.46 | | | | | | 369,803 | | | | | | 22,400 | | | | | | 6.06 | | |
Commercial and industrial | | | | | 36,208 | | | | | | 2,507 | | | | | | 6.92 | | | | | | 34,208 | | | | | | 2,105 | | | | | | 6.15 | | |
Consumer | | | | | 5,701 | | | | | | 393 | | | | | | 6.89 | | | | | | 14,390 | | | | | | 1,460 | | | | | | 10.15 | | |
Residential real estate | | | | | 702,753 | | | | | | 39,058 | | | | | | 5.56 | | | | | | 534,287 | | | | | | 30,309 | | | | | | 5.67 | | |
Other | | | | | 260 | | | | | | 4 | | | | | | 1.54 | | | | | | 319 | | | | | | 2 | | | | | | 0.63 | | |
Gross loans(2) | | | | | 1,185,742 | | | | | | 70,246 | | | | | | 5.92 | | | | | | 999,647 | | | | | | 59,110 | | | | | | 5.91 | | |
Total earning assets | | | | | 1,300,615 | | | | | | 72,879 | | | | | | 5.60 | | | | | | 1,089,984 | | | | | | 60,514 | | | | | | 5.55 | | |
Noninterest-earning assets | | | | | 73,585 | | | | | | | | | | | | | | | | | | 62,576 | | | | | | | | | | | | | | |
Total assets | | | | $ | 1,374,200 | | | | | | | | | | | | | | | | | $ | 1,152,560 | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NOW and savings deposits | | | | $ | 69,741 | | | | | $ | 272 | | | | | | 0.39% | | | | | $ | 77,806 | | | | | $ | 335 | | | | | | 0.43% | | |
Money market deposits | | | | | 50,690 | | | | | | 553 | | | | | | 1.09 | | | | | | 48,778 | | | | | | 286 | | | | | | 0.59 | | |
Time deposits | | | | | 754,256 | | | | | | 13,186 | | | | | | 1.75 | | | | | | 579,518 | | | | | | 7,108 | | | | | | 1.23 | | |
Total interest-bearing deposits | | | | | 874,687 | | | | | | 14,011 | | | | | | 1.60 | | | | | | 706,102 | | | | | | 7,729 | | | | | | 1.09 | | |
Borrowings | | | | | 45,223 | | | | | | 664 | | | | | | 1.47 | | | | | | 67,096 | | | | | | 890 | | | | | | 1.33 | | |
Total interest-bearing liabilities | | | | $ | 919,910 | | | | | $ | 14,675 | | | | | | 1.60 | | | | | $ | 773,198 | | | | | $ | 8,619 | | | | | | 1.11 | | |
Noninterest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing deposits | | | | $ | 284,702 | | | | | | | | | | | | | | | | | $ | 244,040 | | | | | | | | | | | | | | |
Other noninterest-bearing liabilities | | | | | 21,683 | | | | | | | | | | | | | | | | | | 18,216 | | | | | | | | | | | | | | |
Total noninterest-bearing liabilities | | | | | 306,385 | | | | | | | | | | | | | | | | | | 262,256 | | | | | | | | | | | | | | |
Shareholders’ equity | | | | | 147,905 | | | | | | | | | | | | | | | | | | 117,106 | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | | | $ | 1,374,200 | | | | | | | | | | | | | | | | | $ | 1,152,560 | | | | | | | | | | | | | | |
Net interest income | | | | | | | | | | $ | 58,204 | | | | | | | | | | | | | | | | | $ | 51,895 | | | | | | | | |
Net interest spread | | | | | | | | | | | | | | | | | 4.00% | | | | | | | | | | | | | | | | | | 4.44% | | |
Net interest margin | | | | | | | | | | | | | | | | | 4.48% | | | | | | | | | | | | | | | | | | 4.76% | | |
| | | Year Ended December 31, | | |||||||||||||||
| | | 2018 over 2017 | | |||||||||||||||
| | | Increase (Decrease) Change Due to | | |||||||||||||||
(Dollars in thousands) | | | Average Volume | | | Average Rate | | | Net Interest Variance | | |||||||||
Earning Assets: | | | | | | | | | | | | | | | | | | | |
Federal funds sold and other investments(1) | | | | $ | 364 | | | | | $ | 652 | | | | | $ | 1,016 | | |
Securities purchased under agreements to resell | | | | | 94 | | | | | | 93 | | | | | | 187 | | |
Securities available for sale | | | | | (54) | | | | | | 80 | | | | | | 26 | | |
Total investments | | | | | 404 | | | | | | 825 | | | | | | 1,229 | | |
Construction and development | | | | | (35) | | | | | | (36) | | | | | | (71) | | |
Commercial real estate | | | | | 911 | | | | | | 2,210 | | | | | | 3,121 | | |
Commercial and industrial | | | | | 128 | | | | | | 274 | | | | | | 402 | | |
Consumer | | | | | (606) | | | | | | (461) | | | | | | (1,067) | | |
Residential real estate | | | | | 9,180 | | | | | | (431) | | | | | | 8,749 | | |
Other | | | | | 1 | | | | | | 1 | | | | | | 2 | | |
Loans | | | | | 9,579 | | | | | | 1,557 | | | | | | 11,136 | | |
Total earning assets | �� | | | $ | 9,983 | | | | | $ | 2,382 | | | | | $ | 12,365 | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | |
NOW and savings deposits | | | | $ | (22) | | | | | $ | (41) | | | | | $ | (63) | | |
Money market deposits | | | | | 11 | | | | | | 256 | | | | | | 267 | | |
Time deposits | | | | | 2,774 | | | | | | 3,304 | | | | | | 6,078 | | |
Total interest-bearing deposits | | | | | 2,763 | | | | | | 3,519 | | | | | | 6,282 | | |
Borrowings | | | | | (337) | | | | | | 111 | | | | | | (226) | | |
Total interest-bearing liabilities | | | | | 2,426 | | | | | | 3,630 | | | | | | 6,056 | | |
Net interest income | | | | $ | 7,557 | | | | | $ | (1,248) | | | | | $ | 6,309 | | |
| | Year Ended December 31, | | | Period Ended June 30, | | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | 2018 | | 2017 | | Increase (decrease) | | | 2019 | | 2018 | | Increase (decrease) | | ||||||||||||||||||||||||||||||||||||
Noninterest Income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Service charges on deposit accounts | | | $ | 1,036 | | | | $ | 1,274 | | | | $ | (238) | | | | | (18.7)% | | | | | $ | 517 | | | | $ | 520 | | | | $ | (3) | | | | | (0.6)% | | | ||||||||
Other service charges, commissions and fees | | | | 10,395 | | | | | 8,237 | | | | | 2,158 | | | | | 26.2 | | | | | | 5,457 | | | | | 4,876 | | | | | 581 | | | | | 11.9 | | | ||||||||
Gain on sale of residential mortgage loans | | | | 5,679 | | | | | 3,035 | | | | | 2,644 | | | | | 87.1 | | | | | | 3,553 | | | | | 2,350 | | | | | 1,203 | | | | | 51.2 | | | ||||||||
Mortgage servicing income, net | | | | 11,994 | | | | | 8,168 | | | | | 3,826 | | | | | 46.8 | | | | | | 4,654 | | | | | 5,967 | | | | | (1,313) | | | | | (22.0) | | | ||||||||
SBA servicing income, net | | | | 3,119 | | | | | 4,527 | | | | | (1,408) | | | | | (31.1) | | | | | | 2,180 | | | | | 1,912 | | | | | 268 | | | | | 14.0 | | | ||||||||
Gain on sale of SBA loans | | | | 4,616 | | | | | 6,347 | | | | | (1,731) | | | | | (27.3) | | | | | | 2,892 | | | | | 3,418 | | | | | (526) | | | | | (15.4) | | | ||||||||
Other income | | | | 770 | | | | | 817 | | | | | (47) | | | | | (5.8) | | | | | | 279 | | | | | 317 | | | | | (38) | | | | | (12.0) | | | ||||||||
Total | | | $ | 37,609 | | | | $ | 32,405 | | | | $ | 5,204 | | | | | 16.1% | | | | | $ | 19,532 | | | | $ | 19,360 | | | | $ | 172 | | | | | 0.9% | | |
| | | Period Ended June 30, | | |||||||||||||||||||||
(Dollars in thousands) | | | 2019 | | | 2018 | | | Increase (decrease) | | |||||||||||||||
Noninterest Income: | | | | | | | | | | | | | | | | | | | | | | | | | |
Service charges on deposit accounts | | | | $ | 517 | | | | | $ | 520 | | | | | $ | (3) | | | | | | (0.6)% | | |
Other service charges, commissions and fees | | | | | 5,457 | | | | | | 4,876 | | | | | | 581 | | | | | | 11.9 | | |
Gain on sale of residential mortgage loans | | | | | 3,553 | | | | | | 2,350 | | | | | | 1,203 | | | | | | 51.2 | | |
Mortgage servicing income, net | | | | | 4,654 | | | | | | 5,967 | | | | | | (1,313) | | | | | | (22.0) | | |
SBA servicing income, net | | | | | 2,180 | | | | | | 1,912 | | | | | | 268 | | | | | | 14.0 | | |
Gain on sale of SBA loans | | | | | 2,892 | | | | | | 3,418 | | | | | | (526) | | | | | | (15.4) | | |
Other income | | | | | 279 | | | | | | 317 | | | | | | (38) | | | | | | (12.0) | | |
Total | | | | $ | 19,532 | | | | | $ | 19,360 | | | | | $ | 172 | | | | | | 0.9% | | |
| | | Year Ended December 31, | | |||||||||||||||||||||
(Dollars in thousands) | | | 2018 | | | 2017 | | | Increase (decrease) | | |||||||||||||||
Noninterest Expense: | | | | | | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | | $ | 23,569 | | | | | $ | 17,956 | | | | | $ | 5,613 | | | | | | 31.3% | | |
Occupancy | | | | | 4,086 | | | | | | 2,968 | | | | | | 1,118 | | | | | | 37.7 | | |
Data processing | | | | | 842 | | | | | | 801 | | | | | | 41 | | | | | | 5.1 | | |
Advertising | | | | | 613 | | | | | | 634 | | | | | | (21) | | | | | | (3.3) | | |
Federal deposit insurance | | | | | 395 | | | | | | 403 | | | | | | (8) | | | | | | (2.0) | | |
Other operating | | | | | 9,070 | | | | | | 8,430 | | | | | | 640 | | | | | | 7.6 | | |
Total | | | | $ | 38,575 | | | | | $ | 31,192 | | | | | $ | 7,383 | | | | | | 23.7% | | |
|
| | | Year Ended December 31, | | |||||||||||||||||||||||||||||||||
| | | 2017 | | | 2016 | | ||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Average Balance | | | Interest and Fees | | | Yield/ Rate | | | Average Balance | | | Interest and Fees | | | Yield/ Rate | | ||||||||||||||||||
Earning Assets: | | | | | | | �� | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Federal funds sold and other investments(1) | | | | $ | 57,200 | | | | | $ | 742 | | | | | | 1.30% | | | | | $ | 37,581 | | | | | $ | 256 | | | | | | 0.68% | | |
Securities purchased under agreements to resell | | | | | 10,603 | | | | | | 185 | | | | | | 1.74 | | | | | | — | | | | | | — | | | | | | — | | |
Securities available for sale | | | | | 22,534 | | | | | | 477 | | | | | | 2.12 | | | | | | 29,315 | | | | | | 546 | | | | | | 1.86 | | |
Total investments | | | | | 90,337 | | | | | | 1,404 | | | | | | 1.55 | | | | | | 66,896 | | | | | | 802 | | | | | | 1.20 | | |
Construction and development | | | | | 46,640 | | | | | | 2,834 | | | | | | 6.08 | | | | | | 36,616 | | | | | | 2,315 | | | | | | 6.32 | | |
Commercial real estate | | | | | 369,803 | | | | | | 22,400 | | | | | | 6.06 | | | | | | 364,025 | | | | | | 20,133 | | | | | | 5.53 | | |
Commercial and industrial | | | | | 34,208 | | | | | | 2,105 | | | | | | 6.15 | | | | | | 40,226 | | | | | | 2,612 | | | | | | 6.49 | | |
Consumer | | | | | 14,390 | | | | | | 1,460 | | | | | | 10.15 | | | | | | 25,552 | | | | | | 3,105 | | | | | | 12.15 | | |
Residential real estate | | | | | 534,287 | | | | | | 30,309 | | | | | | 5.67 | | | | | | 252,975 | | | | | | 14,575 | | | | | | 5.76 | | |
Other | | | | | 319 | | | | | | 2 | | | | | | 0.63 | | | | | | 811 | | | | | | 24 | | | | | | 2.96 | | |
Gross loans(2) | | | | | 999,647 | | | | | | 59,110 | | | | | | 5.91 | | | | | | 720,205 | | | | | | 42,764 | | | | | | 5.94 | | |
Total earning assets | | | | | 1,089,984 | | | | | | 60,514 | | | | | | 5.55 | | | | | | 787,101 | | | | | | 43,566 | | | | | | 5.54 | | |
Noninterest-earning assets | | | | | 62,576 | | | | | | | | | | | | | | | | | | 47,170 | | | | | | | | | | | | | | |
Total assets | | | | $ | 1,152,560 | | | | | | | | | | | | | | | | | $ | 834,271 | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NOW and savings deposits | | | | $ | 77,806 | | | | | $ | 335 | | | | | | 0.43% | | | | | $ | 59,436 | | | | | $ | 222 | | | | | | 0.37% | | |
Money market deposits | | | | | 48,778 | | | | | | 286 | | | | | | 0.59 | | | | | | 38,973 | | | | | | 197 | | | | | | 0.51 | | |
Time deposits | | | | | 579,518 | | | | | | 7,108 | | | | | | 1.23 | | | | | | 402,824 | | | | | | 4,385 | | | | | | 1.09 | | |
Total interest-bearing deposits | | | | | 706,102 | | | | | | 7,729 | | | | | | 1.09 | | | | | | 501,233 | | | | | | 4,804 | | | | | | 0.96 | | |
Borrowings | | | | | 67,096 | | | | | | 890 | | | | | | 1.33 | | | | | | 38,076 | | | | | | 434 | | | | | | 1.14 | | |
Total interest-bearing liabilities | | | | $ | 773,198 | | | | | $ | 8,619 | | | | | | 1.11 | | | | | $ | 539,309 | | | | | $ | 5,238 | | | | | | 0.97 | | |
Noninterest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing deposits | | | | $ | 244,040 | | | | | | | | | | | | | | | | | $ | 191,130 | | | | | | | | | | | | | | |
Other noninterest-bearing liabilities | | | | | 18,216 | | | | | | | | | | | | | | | | | | 8,418 | | | | | | | | | | | | | | |
Total noninterest-bearing liabilities | | | | | 262,256 | | | | | | | | | | | | | | | | | | 199,548 | | | | | | | | | | | | | | |
Shareholders’ equity | | | | | 117,106 | | | | | | | | | | | | | | | | | | 95,414 | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | | | $ | 1,152,560 | | | | | | | | | | | | | | | | | $ | 834,271 | | | | | | | | | | | | | | |
Net interest income | | | | | | | | | | $ | 51,895 | | | | | | | | | | | | | | | | | $ | 38,328 | | | | | | | | |
Net interest spread | | | | | | | | | | | | | | | | | 4.44% | | | | | | | | | | | | | | | | | | 4.57% | | |
Net interest margin | | | | | | | | | | | | | | | | | 4.76% | | | | | | | | | | | | | | | | | | 4.87% | | |
| | | Year Ended December 31, | | |||||||||||||||
| | | 2017 over 2016 | | |||||||||||||||
| | | Increase (Decrease) Change Due to | | |||||||||||||||
(Dollars in thousands) | | | Average Volume | | | Average Rate | | | Net Interest Variance | | |||||||||
Earning Assets: | | | | | | | | | | | | | | | | | | | |
Federal funds sold and other investments(1) | | | | $ | 222 | | | | | $ | 264 | | | | | $ | 486 | | |
Securities purchased under agreements to resell | | | | | 185 | | | | | | — | | | | | | 185 | | |
Securities available for sale | | | | | (138) | | | | | | 69 | | | | | | (69) | | |
Total investments | | | | | 269 | | | | | | 333 | | | | | | 602 | | |
Construction and development | | | | | 639 | | | | | | (15) | | | | | | 624 | | |
Commercial real estate | | | | | 429 | | | | | | 1,408 | | | | | | 1,837 | | |
Commercial and industrial | | | | | (375) | | | | | | (54) | | | | | | (429) | | |
Consumer | | | | | (1,196) | | | | | | (467) | | | | | | (1,663) | | |
Residential real estate | | | | | 16,147 | | | | | | (154) | | | | | | 15,993 | | |
Other | | | | | (26) | | | | | | 10 | | | | | | (16) | | |
Loans | | | | | 15,618 | | | | | | 728 | | | | | | 16,346 | | |
Total earning assets | | | | $ | 15,887 | | | | | $ | 1,061 | | | | | $ | 16,948 | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | |
NOW and savings deposits | | | | $ | 88 | | | | | $ | 25 | | | | | $ | 113 | | |
Money market deposits | | | | | 52 | | | | | | 37 | | | | | | 89 | | |
Time deposits | | | | | 549 | | | | | | 2,174 | | | | | | 2,723 | | |
Total interest-bearing deposits | | | | | 689 | | | | | | 2,236 | | | | | | 2,925 | | |
Borrowings | | | | | 429 | | | | | | 27 | | | | | | 456 | | |
Total interest-bearing liabilities | | | | | 1,118 | | | | | | 2,263 | | | | | | 3,381 | | |
Net interest income | | | | $ | 14,769 | | | | | $ | (1,202) | | | | | $ | 13,567 | | |
| | Year Ended December 31, | | | Period Ended June 30, | | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | 2017 | | 2016 | | Increase (decrease) | | | 2019 | | 2018 | | Increase (decrease) | | ||||||||||||||||||||||||||||||||||||
Noninterest Income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Service charges on deposit accounts | | | $ | 1,274 | | | | $ | 999 | | | | $ | 275 | | | | | 27.5% | | | | | $ | 517 | | | | $ | 520 | | | | $ | (3) | | | | | (0.6)% | | | ||||||||
Other service charges, commissions and fees | | | | 8,237 | | | | | 5,144 | | | | | 3,093 | | | | | 60.1 | | | | | | 5,457 | | | | | 4,876 | | | | | 581 | | | | | 11.9 | | | ||||||||
Gain on sale of residential mortgage loans | | | | 3,035 | | | | | — | | | | | 3,035 | | | | | — | | | | | | 3,553 | | | | | 2,350 | | | | | 1,203 | | | | | 51.2 | | | ||||||||
Mortgage servicing income, net | | | | 8,168 | | | | | — | | | | | 8,168 | | | | | — | | | | | | 4,654 | | | | | 5,967 | | | | | (1,313) | | | | | (22.0) | | | ||||||||
SBA servicing income, net | | | | 4,527 | | | | | 4,960 | | | | | (433) | | | | | (8.7) | | | | | | 2,180 | | | | | 1,912 | | | | | 268 | | | | | 14.0 | | | ||||||||
Gain on sale of SBA loans | | | | 6,347 | | | | | 8,334 | | | | | (1,987) | | | | | (23.8) | | | | | | 2,892 | | | | | 3,418 | | | | | (526) | | | | | (15.4) | | | ||||||||
Other income | | | | 817 | | | | | 810 | | | | | 7 | | | | | 0.9 | | | | | | 279 | | | | | 317 | | | | | (38) | | | | | (12.0) | | | ||||||||
Total | | | $ | 32,405 | | | | $ | 20,247 | | | | $ | 12,158 | | | | | 60.0% | | | | | $ | 19,532 | | | | $ | 19,360 | | | | $ | 172 | | | | | 0.9% | | |
| | | Period Ended June 30, | | |||||||||||||||||||||
(Dollars in thousands) | | | 2019 | | | 2018 | | | Increase (decrease) | | |||||||||||||||
Noninterest Expense: | | | | | | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | | $ | 12,353 | | | | | $ | 10,571 | | | | | $ | 1,782 | | | | | | 16.9% | | |
Occupancy | | | | | 2,386 | | | | | | 1,878 | | | | | | 508 | | | | | | 27.1 | | |
Data processing | | | | | 520 | | | | | | 430 | | | | | | 90 | | | | | | 20.9 | | |
Advertising | | | | | 313 | | | | | | 311 | | | | | | 2 | | | | | | 0.6 | | |
Federal deposit insurance | | | | | 192 | | | | | | 218 | | | | | | (26) | | | | | | (11.9) | | |
Other operating | | | | | 4,234 | | | | | | 4,262 | | | | | | (28) | | | | | | (0.7) | | |
Total | | | | $ | 19,998 | | | | | $ | 17,670 | | | | | $ | 2,328 | | | | | | 13.2% | | |
| | | Year Ended December 31, | | |||||||||||||||||||||||||||||||||
| | | 2018 | | | 2017 | | ||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Average Balance | | | Interest and Fees | | | Yield/ Rate | | | Average Balance | | | Interest and Fees | | | Yield/ Rate | | ||||||||||||||||||
Earning Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Federal funds sold and other investments(1) | | | | $ | 79,699 | | | | | $ | 1,758 | | | | | | 2.21% | | | | | $ | 57,200 | | | | | $ | 742 | | | | | | 1.30% | | |
Securities purchased under agreements to resell | | | | | 15,000 | | | | | | 372 | | | | | | 2.48 | | | | | | 10,603 | | | | | | 185 | | | | | | 1.74 | | |
Securities available for sale | | | | | 20,174 | | | | | | 503 | | | | | | 2.49 | | | | | | 22,534 | | | | | | 477 | | | | | | 2.12 | | |
Total investments | | | | | 114,873 | | | | | | 2,633 | | | | | | 2.29 | | | | | | 90,337 | | | | | | 1,404 | | | | | | 1.55 | | |
Construction and development | | | | | 46,050 | | | | | | 2,763 | | | | | | 6.00 | | | | | | 46,640 | | | | | | 2,834 | | | | | | 6.08 | | |
Commercial real estate | | | | | 394,770 | | | | | | 25,521 | | | | | | 6.46 | | | | | | 369,803 | | | | | | 22,400 | | | | | | 6.06 | | |
Commercial and industrial | | | | | 36,208 | | | | | | 2,507 | | | | | | 6.92 | | | | | | 34,208 | | | | | | 2,105 | | | | | | 6.15 | | |
Consumer | | | | | 5,701 | | | | | | 393 | | | | | | 6.89 | | | | | | 14,390 | | | | | | 1,460 | | | | | | 10.15 | | |
Residential real estate | | | | | 702,753 | | | | | | 39,058 | | | | | | 5.56 | | | | | | 534,287 | | | | | | 30,309 | | | | | | 5.67 | | |
Other | | | | | 260 | | | | | | 4 | | | | | | 1.54 | | | | | | 319 | | | | | | 2 | | | | | | 0.63 | | |
Gross loans(2) | | | | | 1,185,742 | | | | | | 70,246 | | | | | | 5.92 | | | | | | 999,647 | | | | | | 59,110 | | | | | | 5.91 | | |
Total earning assets | | | | | 1,300,615 | | | | | $ | 72,879 | | | | | | 5.60% | | | | | | 1,089,984 | | | | | $ | 60,514 | | | | | | 5.55% | | |
Noninterest-earning assets | | | | | 73,585 | | | | | | | | | | | | | | | | | | 62,576 | | | | | | | | | | | | | | |
Total assets | | | | $ | 1,374,200 | | | | | | | | | | | | | | | | | $ | 1,152,560 | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NOW and savings deposits | | | | $ | 69,741 | | | | | $ | 272 | | | | | | 0.39% | | | | | $ | 77,806 | | | | | $ | 335 | | | | | | 0.43% | | |
Money market deposits | | | | | 50,690 | | | | | | 553 | | | | | | 1.09 | | | | | | 48,778 | | | | | | 286 | | | | | | 0.59 | | |
Time deposits | | | | | 754,256 | | | | | | 13,186 | | | | | | 1.75 | | | | | | 579,518 | | | | | | 7,108 | | | | | | 1.23 | | |
Total interest-bearing deposits | | | | | 874,687 | | | | | | 14,011 | | | | | | 1.60 | | | | | | 706,102 | | | | | | 7,729 | | | | | | 1.09 | | |
Borrowings | | | | | 45,223 | | | | | | 664 | | | | | | 1.47 | | | | | | 67,096 | | | | | | 890 | | | | | | 1.33 | | |
Total interest-bearing liabilities | | | | $ | 919,910 | | | | | $ | 14,675 | | | | | | 1.60% | | | | | $ | 773,198 | | | | | $ | 8,619 | | | | | | 1.11% | | |
Noninterest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing deposits | | | | $ | 284,702 | | | | | | | | | | | | | | | | | $ | 244,040 | | | | | | | | | | | | | | |
Other noninterest-bearing liabilities | | | | | 21,683 | | | | | | | | | | | | | | | | | | 18,216 | | | | | | | | | | | | | | |
Total noninterest-bearing liabilities | | | | | 306,385 | | | | | | | | | | | | | | | | | | 262,256 | | | | | | | | | | | | | | |
Shareholders’ equity | | | | | 147,905 | | | | | | | | | | | | | | | | | | 117,106 | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | | | $ | 1,374,200 | | | | | | | | | | | | | | | | | $ | 1,152,560 | | | | | | | | | | | | | | |
Net interest income | | | | | | | | | | $ | 58,204 | | | | | | | | | | | | | | | | | $ | 51,895 | | | | | | | | |
Net interest spread | | | | | | | | | | | | | | | | | 4.00% | | | | | | | | | | | | | | | | | | 4.44% | | |
Net interest margin | | | | | | | | | | | | | | | | | 4.48% | | | | | | | | | | | | | | | | | | 4.76% | | |
| | | Year Ended December 31, | | |||||||||||||||
| | | 2018 over 2017 | | |||||||||||||||
| | | Increase (Decrease) Change Due to | | |||||||||||||||
(Dollars in thousands) | | | Average Volume | | | Average Rate | | | Net Interest Variance | | |||||||||
Earning Assets: | | | | | | | | | | | | | | | | | | | |
Federal funds sold and other investments(1) | | | | $ | 364 | | | | | $ | 652 | | | | | $ | 1,016 | | |
Securities purchased under agreements to resell | | | | | 94 | | | | | | 93 | | | | | | 187 | | |
Securities available for sale | | | | | (54) | | | | | | 80 | | | | | | 26 | | |
Total investments | | | | | 404 | | | | | | 825 | | | | | | 1,229 | | |
Construction and development | | | | | (35) | | | | | | (36) | | | | | | (71) | | |
Commercial real estate | | | | | 911 | | | | | | 2,210 | | | | | | 3,121 | | |
Commercial and industrial | | | | | 128 | | | | | | 274 | | | | | | 402 | | |
Consumer | | | | | (606) | | | | | | (461) | | | | | | (1,067) | | |
Residential real estate | | | | | 9,180 | | | | | | (431) | | | | | | 8,749 | | |
Other | | | | | 1 | | | | | | 1 | | | | | | 2 | | |
Loans | | | | | 9,579 | | | | | | 1,557 | | | | | | 11,136 | | |
Total earning assets | | | | $ | 9,983 | | | | | $ | 2,382 | | | | | $ | 12,365 | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | |
NOW and savings deposits | | | | $ | (22) | | | | | $ | (41) | | | | | $ | (63) | | |
Money market deposits | | | | | 11 | | | | | | 256 | | | | | | 267 | | |
Time deposits | | | | | 2,774 | | | | | | 3,304 | | | | | | 6,078 | | |
Total interest-bearing deposits | | | | | 2,763 | | | | | | 3,519 | | | | | | 6,282 | | |
Borrowings | | | | | (337) | | | | | | 111 | | | | | | (226) | | |
Total interest-bearing liabilities | | | | | 2,426 | | | | | | 3,630 | | | | | | 6,056 | | |
Net interest income | | | | $ | 7,557 | | | | | $ | (1,248) | | | | | $ | 6,309 | | |
| | | Year Ended December 31, | | |||||||||||||||||||||
(Dollars in thousands) | | | 2018 | | | 2017 | | | Increase (decrease) | | |||||||||||||||
Noninterest Income: | | | | | | | | | | | | | | | | | | | | | | | | | |
Service charges on deposit accounts | | | | $ | 1,036 | | | | | $ | 1,274 | | | | | $ | (238) | | | | | | (18.7)% | | |
Other service charges, commissions and fees | | | | | 10,395 | | | | | | 8,237 | | | | | | 2,158 | | | | | | 26.2 | | |
Gain on sale of residential mortgage loans | | | | | 5,679 | | | | | | 3,035 | | | | | | 2,644 | | | | | | 87.1 | | |
Mortgage servicing income, net | | | | | 11,994 | | | | | | 8,168 | | | | | | 3,826 | | | | | | 46.8 | | |
SBA servicing income, net | | | | | 3,119 | | | | | | 4,527 | | | | | | (1,408) | | | | | | (31.1) | | |
Gain on sale of SBA loans | | | | | 4,616 | | | | | | 6,347 | | | | | | (1,731) | | | | | | (27.3) | | |
Other income | | | | | 770 | | | | | | 817 | | | | | | (47) | | | | | | (5.8) | | |
Total | | | | $ | 37,609 | | | | | $ | 32,405 | | | | | $ | 5,204 | | | | | | 16.1% | | |
| | | Year Ended December 31, | | |||||||||||||||||||||
(Dollars in thousands) | | | 2018 | | | 2017 | | | Increase (decrease) | | |||||||||||||||
Noninterest Expense: | | | | | | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | | $ | 23,569 | | | | | $ | 17,956 | | | | | $ | 5,613 | | | | | | 31.3% | | |
Occupancy | | | | | 4,086 | | | | | | 2,968 | | | | | | 1,118 | | | | | | 37.7 | | |
Data processing | | | | | 842 | | | | | | 801 | | | | | | 41 | | | | | | 5.1 | | |
Advertising | | | | | 613 | | | | | | 634 | | | | | | (21) | | | | | | (3.3) | | |
Federal deposit insurance | | | | | 395 | | | | | | 403 | | | | | | (8) | | | | | | (2.0) | | |
Other operating | | | | | 9,070 | | | | | | 8,430 | | | | | | 640 | | | | | | 7.6 | | |
Total | | | | $ | 38,575 | | | | | $ | 31,192 | | | | | $ | 7,383 | | | | | | 23.7% | | |
|
| | | Year Ended December 31, | | |||||||||||||||||||||||||||||||||
| | | 2017 | | | 2016 | | ||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Average Balance | | | Interest and Fees | | | Yield/ Rate | | | Average Balance | | | Interest and Fees | | | Yield/ Rate | | ||||||||||||||||||
Earning Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Federal funds sold and other investments(1) | | | | $ | 57,200 | | | | | $ | 742 | | | | | | 1.30% | | | | | $ | 37,581 | | | | | $ | 256 | | | | | | 0.68% | | |
Securities purchased under agreements to resell | | | | | 10,603 | | | | | | 185 | | | | | | 1.74 | | | | | | — | | | | | | — | | | | | | — | | |
Securities available for sale | | | | | 22,534 | | | | | | 477 | | | | | | 2.12 | | | | | | 29,315 | | | | | | 546 | | | | | | 1.86 | | |
Total investments | | | | | 90,337 | | | | | | 1,404 | | | | | | 1.55 | | | | | | 66,896 | | | | | | 802 | | | | | | 1.20 | | |
Construction and development | | | | | 46,640 | | | | | | 2,834 | | | | | | 6.08 | | | | | | 36,616 | | | | | | 2,315 | | | | | | 6.32 | | |
Commercial real estate | | | | | 369,803 | | | | | | 22,400 | | | | | | 6.06 | | | | | | 364,025 | | | | | | 20,133 | | | | | | 5.53 | | |
Commercial and industrial | | | | | 34,208 | | | | | | 2,105 | | | | | | 6.15 | | | | | | 40,226 | | | | | | 2,612 | | | | | | 6.49 | | |
Consumer | | | | | 14,390 | | | | | | 1,460 | | | | | | 10.15 | | | | | | 25,552 | | | | | | 3,105 | | | | | | 12.15 | | |
Residential real estate | | | | | 534,287 | | | | | | 30,309 | | | | | | 5.67 | | | | | | 252,975 | | | | | | 14,575 | | | | | | 5.76 | | |
Other | | | | | 319 | | | | | | 2 | | | | | | 0.63 | | | | | | 811 | | | | | | 24 | | | | | | 2.96 | | |
Gross loans(2) | | | | | 999,647 | | | | | | 59,110 | | | | | | 5.91 | | | | | | 720,205 | | | | | | 42,764 | | | | | | 5.94 | | |
Total earning assets | | | | | 1,089,984 | | | | | $ | 60,514 | | | | | | 5.55% | | | | | | 787,101 | | | | | $ | 43,566 | | | | | | 5.54% | | |
Noninterest-earning assets | | | | | 62,576 | | | | | | | | | | | | | | | | | | 47,170 | | | | | | | | | | | | | | |
Total assets | | | | $ | 1,152,560 | | | | | | | | | | | | | | | | | $ | 834,271 | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NOW and savings deposits | | | | $ | 77,806 | | | | | $ | 335 | | | | | | 0.43% | | | | | $ | 59,436 | | | | | $ | 222 | | | | | | 0.37% | | |
Money market deposits | | | | | 48,778 | | | | | | 286 | | | | | | 0.59 | | | | | | 38,973 | | | | | | 197 | | | | | | 0.51 | | |
Time deposits | | | | | 579,518 | | | | | | 7,108 | | | | | | 1.23 | | | | | | 402,824 | | | | | | 4,385 | | | | | | 1.09 | | |
Total interest-bearing deposits | | | | | 706,102 | | | | | | 7,729 | | | | | | 1.09 | | | | | | 501,233 | | | | | | 4,804 | | | | | | 0.96 | | |
Borrowings | | | | | 67,096 | | | | | | 890 | | | | | | 1.33 | | | | | | 38,076 | | | | | | 434 | | | | | | 1.14 | | |
Total interest-bearing liabilities | | | | $ | 773,198 | | | | | $ | 8,619 | | | | | | 1.11% | | | | | $ | 539,309 | | | | | $ | 5,238 | | | | | | 0.97% | | |
Noninterest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing deposits | | | | $ | 244,040 | | | | | | | | | | | | | | | | | $ | 191,130 | | | | | | | | | | | | | | |
Other noninterest-bearing liabilities | | | | | 18,216 | | | | | | | | | | | | | | | | | | 8,418 | | | | | | | | | | | | | | |
Total noninterest-bearing liabilities | | | | | 262,256 | | | | | | | | | | | | | | | | | | 199,548 | | | | | | | | | | | | | | |
Shareholders’ equity | | | | | 117,106 | | | | | | | | | | | | | | | | | | 95,414 | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | | | $ | 1,152,560 | | | | | | | | | | | | | | | | | $ | 834,271 | | | | | | | | | | | | | | |
Net interest income | | | | | | | | | | $ | 51,895 | | | | | | | | | | | | | | | | | $ | 38,328 | | | | | | | | |
Net interest spread | | | | | | | | | | | | | | | | | 4.44% | | | | | | | | | | | | | | | | | | 4.57% | | |
Net interest margin | | | | | | | | | | | | | | | | | 4.76% | | | | | | | | | | | | | | | | | | 4.87% | | |
| | | Year Ended December 31, | | |||||||||||||||
| | | 2017 over 2016 | | |||||||||||||||
| | | Increase (Decrease) Change Due to | | |||||||||||||||
(Dollars in thousands) | | | Average Volume | | | Average Rate | | | Net Interest Variance | | |||||||||
Earning Assets: | | | | | | | | | | | | | | | | | | | |
Federal funds sold and other investments(1) | | | | $ | 222 | | | | | $ | 264 | | | | | $ | 486 | | |
Securities purchased under agreements to resell | | | | | 185 | | | | | | — | | | | | | 185 | | |
Securities available for sale | | | | | (138) | | | | | | 69 | | | | | | (69) | | |
Total investments | | | | | 269 | | | | | | 333 | | | | | | 602 | | |
Construction and development | | | | | 639 | | | | | | (15) | | | | | | 624 | | |
Commercial real estate | | | | | 429 | | | | | | 1,408 | | | | | | 1,837 | | |
Commercial and industrial | | | | | (375) | | | | | | (54) | | | | | | (429) | | |
Consumer | | | | | (1,196) | | | | | | (467) | | | | | | (1,663) | | |
Residential real estate | | | | | 16,147 | | | | | | (154) | | | | | | 15,993 | | |
Other | | | | | (26) | | | | | | 10 | | | | | | (16) | | |
Loans | | | | | 15,618 | | | | | | 728 | | | | | | 16,346 | | |
Total earning assets | | | | $ | 15,887 | | | | | $ | 1,061 | | | | | $ | 16,948 | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | |
NOW and savings deposits | | | | $ | 88 | | | | | $ | 25 | | | | | $ | 113 | | |
Money market deposits | | | | | 52 | | | | | | 37 | | | | | | 89 | | |
Time deposits | | | | | 549 | | | | | | 2,174 | | | | | | 2,723 | | |
Total interest-bearing deposits | | | | | 689 | | | | | | 2,236 | | | | | | 2,925 | | |
Borrowings | | | | | 429 | | | | | | 27 | | | | | | 456 | | |
Total interest-bearing liabilities | | | | | 1,118 | | | | | | 2,263 | | | | | | 3,381 | | |
Net interest income | | | | $ | 14,769 | | | | | $ | (1,202) | | | | | $ | 13,567 | | |
| | | Year Ended December 31, | | |||||||||||||||||||||
(Dollars in thousands) | | | 2017 | | | 2016 | | | Increase (decrease) | | |||||||||||||||
Noninterest Income: | | | | | | | | | | | | | | | | | | | | | | | | | |
Service charges on deposit accounts | | | | $ | 1,274 | | | | | $ | 999 | | | | | $ | 275 | | | | | | 27.5% | | |
Other service charges, commissions and fees | | | | | 8,237 | | | | | | 5,144 | | | | | | 3,093 | | | | | | 60.1 | | |
Gain on sale of residential mortgage loans | | | | | 3,035 | | | | | | — | | | | | | 3,035 | | | | | | — | | |
Mortgage servicing income, net | | | | | 8,168 | | | | | | — | | | | | | 8,168 | | | | | | — | | |
SBA servicing income, net | | | | | 4,527 | | | | | | 4,960 | | | | | | (433) | | | | | | (8.7) | | |
Gain on sale of SBA loans | | | | | 6,347 | | | | | | 8,334 | | | | | | (1,987) | | | | | | (23.8) | | |
Other income | | | | | 817 | | | | | | 810 | | | | | | 7 | | | | | | 0.9 | | |
Total | | | | $ | 32,405 | | | | | $ | 20,247 | | | | | $ | 12,158 | | | | | | 60.0% | | |
| | | Year Ended December 31, | | |||||||||||||||||||||
(Dollars in thousands) | | | 2017 | | | 2016 | | | Increase (decrease) | | |||||||||||||||
Noninterest Expense: | | | | | | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | | $ | 17,956 | | | | | $ | 15,653 | | | | | $ | 2,303 | | | | | | 14.7% | | |
Occupancy | | | | | 2,968 | | | | | | 2,430 | | | | | | 538 | | | | | | 22.1 | | |
Data processing | | | | | 801 | | | | | | 620 | | | | | | 181 | | | | | | 29.2 | | |
Advertising | | | | | 634 | | | | | | 573 | | | | | | 61 | | | | | | 10.7 | | |
Federal deposit insurance | | | | | 403 | | | | | | 286 | | | | | | 117 | | | | | | 40.9 | | |
Other operating | | | | | 8,430 | | | | | | 6,597 | | | | | | 1,833 | | | | | | 27.8 | | |
Total | | | | $ | 31,192 | | | | | $ | 26,159 | | | | | $ | 5,033 | | | | | | 19.2% | | |
| | | Six months ended June 30, | | | Year ended December 31, | | ||||||||||||||||||||||||
| | | 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||
Return on average: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets(1) | | | | | 2.94% | | | | | | 3.30% | | | | | | 3.01% | | | | | | 2.77% | | | | | | 2.42% | | |
Shareholders’ equity(1) | | | | | 25.46% | | | | | | 31.51% | | | | | | 27.95% | | | | | | 27.24% | | | | | | 21.19% | | |
Dividend payout ratio | | | | | 22.57% | | | | | | 20.16% | | | | | | 22.48% | | | | | | 17.05% | | | | | | 18.65% | | |
Average shareholders’ equity to average assets | | | | | 11.54% | | | | | | 10.47% | | | | | | 10.76% | | | | | | 10.16% | | | | | | 11.44% | | |
(dollars in thousands) | | | As of June 30, 2019 | | | As of December 31, | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amount | | | % of Total | | | Amount | | | % of Total | | | Amount | | | % of Total | | | Amount | | | % of Total | | | Amount | | | % of Total | | | Amount | | | % of Total | | ||||||||||||||||||||||||||||||||||||||
Construction and Development | | | | $ | 37,132 | | | | | | 3.1% | | | | | $ | 42,718 | | | | | | 3.7% | | | | | $ | 45,132 | | | | | | 4.2% | | | | | $ | 43,164 | | | | | | 5.4% | | | | | $ | 38,563 | | | | | | 6.7% | | | | | $ | 37,750 | | | | | | 7.7% | | |
Commercial Real Estate | | | | | 420,332 | | | | | | 35.3% | | | | | | 396,598 | | | | | | 34.6% | | | | | | 369,346 | | | | | | 34.6% | | | | | | 370,239 | | | | | | 46.0% | | | | | | 330,974 | | | | | | 58.0% | | | | | | 317,939 | | | | | | 65.0% | | |
Commercial and Industrial | | | | | 43,771 | | | | | | 3.7% | | | | | | 33,100 | | | | | | 2.9% | | | | | | 33,671 | | | | | | 3.2% | | | | | | 39,938 | | | | | | 5.0% | | | | | | 38,442 | | | | | | 6.7% | | | | | | 31,960 | | | | | | 6.5% | | |
Consumer | | | | | 1,936 | | | | | | 0.2% | | | | | | 2,804 | | | | | | 0.3% | | | | | | 8,934 | | | | | | 0.8% | | | | | | 19,204 | | | | | | 2.4% | | | | | | 29.566 | | | | | | 5.2% | | | | | | 16,690 | | | | | | 3.4% | | |
Residential Real Estate | | | | | 687,389 | | | | | | 57.7% | | | | | | 670,341 | | | | | | 58.5% | | | | | | 611,258 | | | | | | 57.2% | | | | | | 331,412 | | | | | | 41.2% | | | | | | 132,844 | | | | | | 23.3% | | | | | | 83,928 | | | | | | 17.2% | | |
Other | | | | | 351 | | | | | | 0.0% | | | | | | 153 | | | | | | 0.0% | | | | | | 252 | | | | | | 0.0% | | | | | | 361 | | | | | | 0.0% | | | | | | 366 | | | | | | 0.1% | | | | | | 922 | | | | | | 0.2% | | |
Gross loans | | | | $ | 1,190,911 | | | | | | 100% | | | | | $ | 1,145,714 | | | | | | 100% | | | | | $ | 1,068,593 | | | | | | 100% | | | | | $ | 804,318 | | | | | | 100% | | | | | $ | 570,755 | | | | | | 100% | | | | | $ | 489,189 | | | | | | 100% | | |
Unearned income | | | | | (2,492) | | | | | | | | | | | | (2,139) | | | | | | | | | | | | (1,620) | | | | | | | | | | | | (1,678) | | | | | | | | | | | | (1,453) | | | | | | | | | | | | (2,262) | | | | | | | | |
Allowance for loan losses | | | | | (6,483) | | | | | | | | | | | | (6,645) | | | | | | | | | | | | (6,925) | | | | | | | | | | | | (5,471) | | | | | | | | | | | | (5,527) | | | | | | | | | | | | (5,986) | | | | | | | | |
Net loans | | | | $ | 1,181,936 | | | | | | | | | | | $ | 1,136,930 | | | | | | | | | | | $ | 1,060,048 | | | | | | | | | | | $ | 797,169 | | | | | | | | | | | $ | 563,775 | | | | | | | | | | | $ | 480,941 | | | | | | | | |
|
| | | As of June 30, 2019 | | |||||||||||||||||||||||||||||||||||||||
| | | Due in One Year or Less | | | Due after One Year Through Five Years | | | Due after Five Years | | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Fixed Rate | | | Adjustable Rate | | | Fixed Rate | | | Adjustable Rate | | | Fixed Rate | | | Adjustable Rate | | | Total | | |||||||||||||||||||||
Construction and Development | | | | $ | 6,938 | | | | | $ | 27,407 | | | | | $ | 1,505 | | | | | $ | 502 | | | | | $ | — | | | | | $ | 780 | | | | | $ | 37,132 | | |
Commercial Real Estate | | | | | 5,216 | | | | | | 39,588 | | | | | | 54,259 | | | | | | 67,045 | | | | | | 28,216 | | | | | | 226,008 | | | | | | 420,332 | | |
Commercial and Industrial | | | | | 178 | | | | | | 13,560 | | | | | | 667 | | | | | | 7,100 | | | | | | 1,989 | | | | | | 20,277 | | | | | | 43,771 | | |
Consumer | | | | | 1,932 | | | | | | — | | | | | | 4 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,936 | | |
Residential Real Estate | | | | | — | | | | | | 773 | | | | | | — | | | | | | 166 | | | | | | — | | | | | | 686,450 | | | | | | 687,389 | | |
Other | | | | | — | | | | | | 351 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 351 | | |
Gross loans | | | | $ | 14,264 | | | | | $ | 81,679 | | | | | $ | 56,435 | | | | | $ | 74,813 | | | | | $ | 30,205 | | | | | $ | 933,515 | | | | | $ | 1,190,911 | | |
| | | As of December 31, 2018 | | |||||||||||||||||||||||||||||||||||||||
| | | Due in One Year or Less | | | Due after One Year Through Five Years | | | Due after Five Years | | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Fixed Rate | | | Adjustable Rate | | | Fixed Rate | | | Adjustable Rate | | | Fixed Rate | | | Adjustable Rate | | | Total | | |||||||||||||||||||||
Construction and Development | | | | $ | 1,360 | | | | | $ | 38,306 | | | | | $ | 352 | | | | | $ | 2,426 | | | | | $ | — | | | | | $ | 274 | | | | | $ | 42,718 | | |
Commercial Real Estate | | | | | 35 | | | | | | 47,524 | | | | | | 46,380 | | | | | | 59,841 | | | | | | 27,568 | | | | | | 215,250 | | | | | | 396,598 | | |
Commercial and Industrial | | | | | 74 | | | | | | 6,991 | | | | | | 513 | | | | | | 3,540 | | | | | | 2,085 | | | | | | 19,897 | | | | | | 33,100 | | |
Consumer | | | | | 3 | | | | | | — | | | | | | 2,801 | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,804 | | |
Residential Real Estate | | | | | — | | | | | | 1,524 | | | | | | — | | | | | | — | | | | | | — | | | | | | 668,817 | | | | | | 670,341 | | |
Other | | | | | — | | | | | | 153 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 153 | | |
Gross loans | | | | $ | 1,472 | | | | | $ | 94,498 | | | | | $ | 50,046 | | | | | $ | 65,807 | | | | | $ | 29,653 | | | | | $ | 904,238 | | | | | $ | 1,145,714 | | |
(Dollars in thousands) | | | As of June 30, 2019 | | | Year Ended December 31, | | ||||||||||||||||||||||||||||||
| 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | | |||||||||||||||||||||||
Beginning balance | | | | $ | 8,419 | | | | | $ | 9,329 | | | | | $ | 8,823 | | | | | $ | 7,083 | | | | | $ | 5,598 | | | | | $ | 5,225 | | |
Additions | | | | | 579 | | | | | | 350 | | | | | | 527 | | | | | | 1,758 | | | | | | 1,531 | | | | | | 436 | | |
Disposals | | | | | (355) | | | | | | (1,260) | | | | | | (21) | | | | | | (29) | | | | | | (50) | | | | | | (63) | | |
Other changes | | | | | — | | | | | | — | | | | | | — | | | | | | 11 | | | | | | 4 | | | | | | — | | |
End of year | | | | $ | 8,643 | | | | | $ | 8,419 | | | | | $ | 9,329 | | | | | $ | 8,823 | | | | | $ | 7,083 | | | | | $ | 5,598 | | |
| | | As of and for the Six Months Ended June 30, | | | As of and for the Year Ended December 31, | | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | | |||||||||||||||||||||
Balance, beginning of period | | | | $ | 6,645 | | | | | $ | 6,925 | | | | | $ | 6,925 | | | | | $ | 5,470 | | | | | $ | 5,527 | | | | | $ | 5,986 | | | | | $ | 7,503 | | |
Charge-offs: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial real estate | | | | | — | | | | | | 14 | | | | | | 88 | | | | | | 131 | | | | | | 42 | | | | | | 462 | | | | | | 1,521 | | |
Commercial and industrial | | | | | 14 | | | | | | — | | | | | | 39 | | | | | | — | | | | | | 95 | | | | | | 123 | | | | | | 73 | | |
Consumer | | | | | 331 | | | | | | 1,374 | | | | | | 1,939 | | | | | | 1,513 | | | | | | — | | | | | | — | | | | | | — | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total charge-offs | | | | | 345 | | | | | | 1,388 | | | | | | 2,066 | | | | | | 1,644 | | | | | | 137 | | | | | | 585 | | | | | | 1,594 | | |
Recoveries: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial real estate | | | | | 11 | | | | | | 9 | | | | | | 22 | | | | | | 41 | | | | | | 63 | | | | | | 126 | | | | | | 25 | | |
Commercial and industrial | | | | | — | | | | | | 1 | | | | | | — | | | | | | — | | | | | | 17 | | | | | | — | | | | | | 52 | | |
Consumer | | | | | 172 | | | | | | 348 | | | | | | 527 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total recoveries | | | | | 183 | | | | | | 358 | | | | | | 549 | | | | | | 41 | | | | | | 81 | | | | | | 126 | | | | | | 77 | | |
Net charge-offs | | | | | 162 | | | | | | 1,030 | | | | | | 1,517 | | | | | | 1,603 | | | | | | 56 | | | | | | 459 | | | | | | 1,517 | | |
Provision for loan losses | | | | | — | | | | | | 871 | | | | | | 1,237 | | | | | | 3,058 | | | | | | — | | | | | | — | | | | | | — | | |
Balance, end of period | | | | $ | 6,483 | | | | | $ | 6,766 | | | | | $ | 6,645 | | | | | $ | 6,925 | | | | | $ | 5,470 | | | | | $ | 5,527 | | | | | $ | 5,986 | | |
Total loans at end of period | | | | $ | 1,190,911 | | | | | $ | 1,094,229 | | | | | $ | 1,145,714 | | | | | $ | 1,068,593 | | | | | $ | 804,318 | | | | | $ | 570,755 | | | | | $ | 489,189 | | |
Average loans(1) | | | | $ | 1,190,422 | | | | | $ | 1,096,726 | | | | | $ | 1,110,451 | | | | | $ | 966,707 | | | | | $ | 679,733 | | | | | $ | 525,961 | | | | | $ | 453,721 | | |
Net charge-offs to average loans(2) | | | | | 0.03% | | | | | | 0.19% | | | | | | 0.14% | | | | | | 0.17% | | | | | | 0.01% | | | | | | 0.09% | | | | | | 0.33% | | |
Allowance for loan losses to total loans | | | | | 0.54% | | | | | | 0.62% | | | | | | 0.58% | | | | | | 0.65% | | | | | | 0.68% | | | | | | 0.97% | | | | | | 1.22% | | |
| | | | | | As of December 31, | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | As of June 30, 2019 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Amount | | | Percentage(1) | | | Amount | | | Percentage(1) | | | Amount | | | Percentage(1) | | | Amount | | | Percentage(1) | | | Amount | | | Percentage(1) | | | Amount | | | Percentage(1) | | ||||||||||||||||||||||||||||||||||||
Construction and development | | | | $ | 129 | | | | | | 0.35% | | | | | $ | 235 | | | | | | 0.55% | | | | | $ | 127 | | | | | | 0.28% | | | | | $ | 116 | | | | | | 0.27% | | | | | $ | 341 | | | | | | 0.88% | | | | | $ | 195 | | | | | | 0.52% | | |
Commercial real estate | | | | | 2,384 | | | | | | 0.57% | | | | | | 2,601 | | | | | | 0.66% | | | | | | 2,135 | | | | | | 0.58% | | | | | | 2,854 | | | | | | 0.77% | | | | | | 3,611 | | | | | | 1.09% | | | | | | 3,788 | | | | | | 1.19% | | |
Commercial and industrial | | | | | 587 | | | | | | 1.34% | | | | | | 380 | | | | | | 1.15% | | | | | | 261 | | | | | | 0.78% | | | | | | 257 | | | | | | 0.64% | | | | | | 496 | | | | | | 1.29% | | | | | | 278 | | | | | | 0.87% | | |
Consumer | | | | | 196 | | | | | | 10.12% | | | | | | 387 | | | | | | 13.80% | | | | | | 1,167 | | | | | | 13.06% | | | | | | 4 | | | | | | 0.02% | | | | | | 43 | | | | | | 0.15% | | | | | | 7 | | | | | | 0.04% | | |
Residential real estate | | | | | 3,165 | | | | | | 0.46% | | | | | | 3,042 | | | | | | 0.45% | | | | | | 3,048 | | | | | | 0.50% | | | | | | 1,656 | | | | | | 0.50% | | | | | | 396 | | | | | | 0.30% | | | | | | 752 | | | | | | 0.90% | | |
Other | | | | | 1 | | | | | | 0.28% | | | | | | — | | | | | | 0.00% | | | | | | 3 | | | | | | 1.19% | | | | | | 1 | | | | | | 0.28% | | | | | | 2 | | | | | | 0.55% | | | | | | 196 | | | | | | 21.26% | | |
Unallocated | | | | | 21 | | | | | | | | | | | | — | | | | | | | | | | | | 184 | | | | | | | | | | | | 583 | | | | | | | | | | | | 638 | | | | | | | | | | | | 770 | | | | | | | | |
Total | | | | $ | 6,483 | | | | | | 0.54% | | | | | $ | 6,645 | | | | | | 0.58% | | | | | $ | 6,925 | | | | | | 0.65% | | | | | $ | 5,471 | | | | | | 0.68% | | | | | $ | 5,527 | | | | | | 0.97% | | | | | $ | 5,986 | | | | | | 1.22% | | |
|
| | | As of June 30, | | | As of December 31, | | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | 2019 | | | 2018 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | | |||||||||||||||||||||
Nonaccrual loans | | | | $ | 13,633 | | | | | $ | 5,103 | | | | | $ | 5,667 | | | | | $ | 7,083 | | | | | $ | 30 | | | | | $ | 1,831 | | | | | $ | 483 | | |
Past due loans 90 days or more and still accruing | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 92 | | | | | | — | | | | | | — | | |
Accruing troubled debt restructured loans | | | | | 3,130 | | | | | | 2,868 | | | | | | 3,298 | | | | | | 2,945 | | | | | | 3,432 | | | | | | 3,113 | | | | | | 9,086 | | |
Total nonperforming loans | | | | | 16,763 | | | | | | 7,971 | | | | | | 8,965 | | | | | | 10,028 | | | | | | 3,554 | | | | | | 4,944 | | | | | | 9,569 | | |
Other real estate owned | | | | | — | | | | | | — | | | | | | — | | | | | | 610 | | | | | | 365 | | | | | | 1,167 | | | | | | 2,201 | | |
Total nonperforming assets | | | | $ | 16,763 | | | | | $ | 7,971 | | | | | $ | 8,965 | | | | | $ | 10,638 | | | | | $ | 3,919 | | | | | $ | 6,111 | | | | | $ | 11,770 | | |
Nonperforming loans to gross loans | | | | | 1.41% | | | | | | 0.73% | | | | | | 0.78% | | | | | | 0.94% | | | | | | 0.44% | | | | | | 0.87% | | | | | | 1.96% | | |
Nonperforming assets to total assets | | | | | 1.10% | | | | | | 0.59% | | | | | | 0.63% | | | | | | 0.83% | | | | | | 0.36% | | | | | | 0.91% | | | | | | 2.02% | | |
Allowance for loan losses to non-performing loans | | | | | 38.67% | | | | | | 84.88% | | | | | | 74.12% | | | | | | 69.06% | | | | | | 153.94% | | | | | | 111.79% | | | | | | 62.56% | | |
(Dollars in thousands) | | | As of June 30, 2019 | | | As of December 31, | | ||||||||||||||||||||||||||||||||||||||||||
| 2018 | | | 2017 | | | 2016 | | |||||||||||||||||||||||||||||||||||||||||
| Average Balance | | | Weighted Average Rate | | | Average Balance | | | Weighted Average Rate | | | Average Balance | | | Weighted Average Rate | | | Average Balance | | | Weighted Average Rate | | ||||||||||||||||||||||||||
Noninterest-bearing demand | | | | $ | 299,373 | | | | | | —% | | | | | $ | 284,702 | | | | | | —% | | | | | $ | 244,040 | | | | | | —% | | | | | $ | 191,130 | | | | | | —% | | |
Interest-bearing demand deposits | | | | | 33,185 | | | | | | 0.20 | | | | | | 40,133 | | | | | | 0.19 | | | | | | 48,271 | | | | | | 0.31 | | | | | | 40,869 | | | | | | 0.32 | | |
Savings deposits | | | | | 123,093 | | | | | | 1.96 | | | | | | 80,298 | | | | | | 0.93 | | | | | | 78,313 | | | | | | 0.64 | | | | | | 57,535 | | | | | | 0.50 | | |
Brokered time deposits | | | | | 49,925 | | | | | | 2.35 | | | | | | 90,602 | | | | | | 1.68 | | | | | | 75,957 | | | | | | 1.17 | | | | | | 32,091 | | | | | | 1.01 | | |
Time deposits ($250,000 or less) | | | | | 641,988 | | | | | | 2.20 | | | | | | 500,458 | | | | | | 1.69 | | | | | | 354,165 | | | | | | 1.24 | | | | | | 246,984 | | | | | | 1.12 | | |
Time deposits (more than $250,000) | | | | | 128,999 | | | | | | 1.85 | | | | | | 163,196 | | | | | | 2.01 | | | | | | 149,396 | | | | | | 1.20 | | | | | | 123,754 | | | | | | 1.06 | | |
Total interest-bearing | | | | | 977,190 | | | | | | 2.17 | | | | | | 874,687 | | | | | | 1.60 | | | | | | 706,102 | | | | | | 1.10 | | | | | | 501,233 | | | | | | 0.96 | | |
Total deposits | | | | $ | 1,276,563 | | | | | | 1.66% | | | | | $ | 1,159,389 | | | | | | 1.21% | | | | | $ | 950,142 | | | | | | 0.81% | | | | | $ | 692,363 | | | | | | 0.69% | | |
|
| | | As of June 30, 2019 Maturity Within: | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Three Months | | | Three to Six Months | | | Six to 12 Months | | | After 12 Months | | | Total | | |||||||||||||||
Time deposits ($250,000 or less) | | | | $ | 166,189 | | | | | $ | 124,090 | | | | | $ | 277,832 | | | | | $ | 12,303 | | | | | $ | 580,414 | | |
Time deposits (more than $250,000) | | | | | 84,200 | | | | | | 39,397 | | | | | | 84,367 | | | | | | 1,293 | | | | | | 209,257 | | |
Total time deposits | | | | $ | 250,389 | | | | | $ | 163,487 | | | | | $ | 362,199 | | | | | $ | 13,596 | | | | | $ | 789,671 | | |
|
| | | As of December 31, 2018 Maturity Within: | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Three Months | | | Three to Six Months | | | Six to 12 Months | | | After 12 Months | | | Total | | |||||||||||||||
Time deposits ($250,000 or less) | | | | $ | 132,084 | | | | | $ | 254,544 | | | | | $ | 153,978 | | | | | $ | 13,673 | | | | | $ | 554,279 | | |
Time deposits (more than $250,000) | | | | | 53,862 | | | | | | 124,816 | | | | | | 87,740 | | | | | | 3,092 | | | | | | 269,510 | | |
Total time deposits | | | | $ | 185,946 | | | | | $ | 379,360 | | | | | $ | 241,718 | | | | | $ | 16,765 | | | | | $ | 823,789 | | |
| | | June 30, 2019 | | | December 31, 2018 | | | December 31, 2017 | | | December 31, 2016 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Amortized Cost | | | Fair Value | | | Unrealized Gain (loss) | | | Amortized Cost | | | Fair Value | | | Unrealized Gain (loss) | | | Amortized Cost | | | Fair Value | | | Unrealized Gain (loss) | | | Amortized Cost | | | Fair Value | | | Unrealized Gain (loss) | | ||||||||||||||||||||||||||||||||||||
Available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Government agencies | | | | $ | 14,281 | | | | | $ | 14,281 | | | | | $ | — | | | | | $ | 15,183 | | | | | $ | 15,183 | | | | | $ | — | | | | | $ | 16,661 | | | | | $ | 16,661 | | | | | $ | — | | | | | $ | 23,916 | | | | | $ | 23,916 | | | | | $ | — | | |
Mortgage-backed GSE residential | | | | | 2,350 | | | | | | 2,297 | | | | | | (53) | | | | | | 2,607 | | | | | | 2,492 | | | | | | (115) | | | | | | 3,245 | | | | | | 3,155 | | | | | | (90) | | | | | | 4,082 | | | | | | 3,989 | | | | | | (93) | | |
States and political subdivisions | | | | | 1,246 | | | | | | 1,268 | | | | | | 22 | | | | | | 1,248 | | | | | | 1,213 | | | | | | (35) | | | | | | 1,249 | | | | | | 1,235 | | | | | | (14) | | | | | | — | | | | | | — | | | | | | — | | |
Total available for sale | | | | $ | 17,877 | | | | | $ | 17,846 | | | | | $ | (31) | | | | | $ | 19,038 | | | | | $ | 18,888 | | | | | $ | (150) | | | | | $ | 21,155 | | | | | $ | 21,051 | | | | | $ | (104) | | | | | $ | 27,998 | | | | | $ | 27,905 | | | | | $ | (93) | | |
|
(Dollars in thousands) | | | As of June 30, 2019 | | |||||||||||||||||||||||||||||||||||||||||||||
| Due in One Year or less | | | Due after One Year Through Five Years | | | Due after Five Years Through Ten Years | | | Due after Ten Years | | ||||||||||||||||||||||||||||||||||||||
| Amortized Cost | | | Weighted Average Yield | | | Amortized Cost | | | Weighted Average Yield | | | Amortized Cost | | | Weighted Average Yield | | | Amortized Cost | | | Weighted Average Yield | | ||||||||||||||||||||||||||
Available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Government agencies | | | | $ | 608 | | | | | | 2.57% | | | | | $ | 2,593 | | | | | | 2.57% | | | | | $ | 3,639 | | | | | | 2.57% | | | | | $ | 7,441 | | | | | | 2.60% | | |
Mortgage-backed GSE residential | | | | | 504 | | | | | | 1.47% | | | | | | 1,364 | | | | | | 1.54% | | | | | | 481 | | | | | | 1.66% | | | | | | 1 | | | | | | 4.31% | | |
States and political subdivisions | | | | | — | | | | | | 0.00% | | | | | | 265 | | | | | | 1.80% | | | | | | 981 | | | | | | 2.20% | | | | | | — | | | | | | 0.00% | | |
Total available for sale | | | | $ | 1,112 | | | | | | 2.07% | | | | | $ | 4,222 | | | | | | 2.19% | | | | | $ | 5,101 | | | | | | 2.42% | | | | | $ | 7,442 | | | | | | 2.60% | | |
|
(Dollars in thousands) | | | As of December 31, 2018 | | |||||||||||||||||||||||||||||||||||||||||||||
| Due in One Year or less | | | Due after One Year Through Five Years | | | Due after Five Years Through Ten Years | | | Due after Ten Years | | ||||||||||||||||||||||||||||||||||||||
| Amortized Cost | | | Weighted Average Yield | | | Amortized Cost | | | Weighted Average Yield | | | Amortized Cost | | | Weighted Average Yield | | | Amortized Cost | | | Weighted Average Yield | | ||||||||||||||||||||||||||
Available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Government agencies | | | | $ | 616 | | | | | | 2.59% | | | | | $ | 2,627 | | | | | | 2.59% | | | | | $ | 3,691 | | | | | | 2.60% | | | | | $ | 8,249 | | | | | | 2.64% | | |
Mortgage-backed GSE residential | | | | | 536 | | | | | | 1.63% | | | | | | 1,447 | | | | | | 1.63% | | | | | | 623 | | | | | | 1.65% | | | | | | 1 | | | | | | 4.29% | | |
States and political subdivisions | | | | | — | | | | | | 0.00% | | | | | | 266 | | | | | | 1.80% | | | | | | 982 | | | | | | 2.20% | | | | | | — | | | | | | 0.00% | | |
Total available for sale | | | | $ | 1,152 | | | | | | 2.14% | | | | | $ | 4,340 | | | | | | 2.23% | | | | | $ | 5,296 | | | | | | 2.41% | | | | | $ | 8,250 | | | | | | 2.64% | | |
| | | Ratio at June 30, 2019 | | | Ratio at December 31, | | | Regulatory Capital Ratio Requirements | | | Regulatory Capital Ratio Requirements including fully phased-in Capital Conservation Buffer | | | Minimum Requirement for “Well Capitalized” Depository Institution | | |||||||||||||||||||||||||||
| 2018 | | | 2017 | | | 2016 | | |||||||||||||||||||||||||||||||||||
Total capital (to risk-weighted assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 18.66% | | | | | | 18.16% | | | | | | 17.08% | | | | | | 14.89% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 18.47% | | | | | | 17.80% | | | | | | 16.65% | | | | | | 14.48% | | | | | | 8.00% | | | | | | 10.50% | | | | | | 10.00% | | |
Tier 1 capital (to risk-weighted assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 17.99% | | | | | | 17.44% | | | | | | 16.24% | | | | | | 14.16% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 17.81% | | | | | | 17.08% | | | | | | 15.81% | | | | | | 13.75% | | | | | | 6.00% | | | | | | 8.50% | | | | | | 8.00% | | |
CETI capital (to risk-weighted assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 17.99% | | | | | | 17.44% | | | | | | 16.24% | | | | | | 14.16% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 17.81% | | | | | | 17.08% | | | | | | 15.81% | | | | | | 13.75% | | | | | | 4.50% | | | | | | 7.00% | | | | | | 6.50% | | |
Tier 1 capital (to average assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 11.67% | | | | | | 11.14% | | | | | | 10.76% | | | | | | 10.19% | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 11.54% | | | | | | 10.91% | | | | | | 10.47% | | | | | | 10.16% | | | | | | 4.00% | | | | | | 4.00% | | | | | | 5.00% | | |
| | | Payments Due at June 30, 2019 | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Within One Year | | | One to Three Years | | | Three to Five Years | | | After Five Years | | | Total | | |||||||||||||||
Deposits without a stated maturity | | | | $ | 506,516 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 506,516 | | |
Time deposits | | | | | 776,075 | | | | | | 12,079 | | | | | | 1,517 | | | | | | — | | | | | | 789,671 | | |
Operating lease liabilities | | | | | 2,001 | | | | | | 3,830 | | | | | | 3,752 | | | | | | 5,405 | | | | | | 14,988 | | |
Total contractual obligations | | | | $ | 1,284,592 | | | | | $ | 15,909 | | | | | $ | 5,269 | | | | | $ | 5,405 | | | | | $ | 1,311,175 | | |
|
| | | Payments Due at December 31, 2018 | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Within One Year | | | One to Three Years | | | Three to Five Years | | | After Five Years | | | Total | | |||||||||||||||
Deposits without a stated maturity | | | | $ | 420,443 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 420,443 | | |
Time deposits | | | | | 807,025 | | | | | | 13,593 | | | | | | 3,171 | | | | | | — | | | | | | 823,789 | | |
Operating lease commitments | | | | | 1,642 | | | | | | 3,152 | | | | | | 2,297 | | | | | | 3,162 | | | | | | 10,253 | | |
Total contractual obligations | | | | $ | 1,229,110 | | | | | $ | 16,745 | | | | | $ | 5,468 | | | | | $ | 3,162 | | | | | $ | 1,254,485 | | |
| | | June 30, 2019 | | | December 31, | | ||||||||||||||||||
(Dollars in thousands) | | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||
Commitments to extend credit | | | | $ | 63,693 | | | | | $ | 65,283 | | | | | $ | 36,250 | | | | | $ | 48,942 | | |
Standby letters of credit | | | | | 4,509 | | | | | | 4,250 | | | | | | 4,249 | | | | | | 5,017 | | |
Total | | | | $ | 68,202 | | | | | $ | 69,533 | | | | | $ | 40,499 | | | | | $ | 53,959 | | |
|
| | | June 30, 2019 | | | December 31, | | ||||||||||||||||||
(Dollars in thousands) | | | 2018 | | | 2017 | | | 2016 | | |||||||||||||||
Commitments to extend credit | | | | $ | 63,693 | | | | | $ | 65,283 | | | | | $ | 36,250 | | | | | $ | 48,942 | | |
Standby letters of credit | | | | | 4,509 | | | | | | 4,250 | | | | | | 4,249 | | | | | | 5,017 | | |
Total | | | | $ | 68,202 | | | | | $ | 69,533 | | | | | $ | 40,499 | | | | | $ | 53,959 | | |
| | | Net Interest Income Sensitivity | | |||||||||||||||||||||
| | | 12 Month Projection | | | 24 Month Projection | | ||||||||||||||||||
(Shock in basis points) | | | +200 | | | -100 | | | +200 | | | -100 | | ||||||||||||
June 30, 2019 | | | | | 5.00% | | | | | | -1.80% | | | | | | 6.00% | | | | | | -1.80% | | |
December 31, 2018 | | | | | 4.53% | | | | | | -3.12% | | | | | | 2.07% | | | | | | -5.68% | | |
December 31, 2017 | | | | | 4.27% | | | | | | -2.58% | | | | | | 2.10% | | | | | | -7.62% | | |
October 31, 2016 | | | | | 5.11% | | | | | | -0.99% | | | | | | 8.00% | | | | | | -1.99% | | |
| | | Economic Value of Equity Sensitivity | | |||||||||||||||||||||
(Shock in basis points) | | | +300 | | | +200 | | | +100 | | | -100 | | ||||||||||||
June 30, 2019 | | | | | 3.70% | | | | | | 4.80% | | | | | | 3.60% | | | | | | -4.30% | | |
December 31, 2018 | | | | | -2.70% | | | | | | -0.10% | | | | | | 1.20% | | | | | | -3.00% | | |
December 31, 2017 | | | | | 3.00% | | | | | | 4.50% | | | | | | 3.70% | | | | | | -5.10% | | |
October 31, 2016 | | | | | 11.20% | | | | | | 8.90% | | | | | | 4.60% | | | | | | -6.80% | | |
| | | Three-Year CAGR from December 31, 2015 to December 31, 2018 | | |||||||||||||||||||||||||||
| | | | | | | | | Nationwide Peer Group | | | Ethnic Peer Group | | ||||||||||||||||||
| | | MetroCity | | | 75th Percentile | | | Median | | | 75th Percentile | | | Median | | |||||||||||||||
Total Assets | | | | | 28.9% | | | | | | 16.5% | | | | | | 10.4% | | | | | | 20.5% | | | | | | 17.6% | | |
Total Loans | | | | | 28.4% | | | | | | 17.7% | | | | | | 13.6% | | | | | | 20.8% | | | | | | 17.1% | | |
Total Deposits | | | | | 30.7% | | | | | | 18.1% | | | | | | 11.0% | | | | | | 21.3% | | | | | | 16.1% | | |
Total Shareholders’ Equity | | | | | 23.5% | | | | | | 24.3% | | | | | | 11.5% | | | | | | 27.2% | | | | | | 18.9% | | |
| | | Three-Year CAGR from December 31, 2015 to December 31, 2018 | | |||||||||||||||||||||||||||
| | | | | | | | | Nationwide Peer Group | | | Ethnic Peer Group | | ||||||||||||||||||
| | | MetroCity | | | 75th Percentile | | | Median | | | 75th Percentile | | | Median | | |||||||||||||||
Net Interest Income | | | | | 25.0% | | | | | | 17.7% | | | | | | 12.5% | | | | | | 22.2% | | | | | | 21.2% | | |
Noninterest Income | | | | | 37.2% | | | | | | 15.7% | | | | | | 5.4% | | | | | | 14.4% | | | | | | 6.4% | | |
Noninterest Expense | | | | | 28.1% | | | | | | 14.1% | | | | | | 8.4% | | | | | | 16.3% | | | | | | 13.4% | | |
Net Income | | | | | 35.6% | | | | | | 30.8% | | | | | | 20.9% | | | | | | 33.7% | | | | | | 26.5% | | |
| | For the Year-to-Date Period Ending on the Most Recent Financial Quarter Available, | | | For the Year-to-Date Period Ending on the Most Recent Financial Quarter Available, | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | Nationwide Peer Group | | Ethnic Peer Group | | | | | | | | Nationwide Peer Group | | Ethnic Peer Group | | ||||||||||||||||||||||||||||||||||||||||||
| | MetroCity | | 75th Percentile | | Median | | 75th Percentile | | Median | | | MetroCity | | 75th Percentile | | Median | | 75th Percentile | | Median | | ||||||||||||||||||||||||||||||||||||||||
Return on Average Assets | | | | 2.94% | | | | | 1.35% | | | | | 1.14% | | | | | 1.61% | | | | | 1.53% | | | | | | 2.94% | | | | | 1.35% | | | | | 1.14% | | | | | 1.61% | | | | | 1.53% | | | ||||||||||
Return on Average Equity | | | | 25.46% | | | | | 12.23% | | | | | 9.76% | | | | | 13.13% | | | | | 12.47% | | | | | | 25.46% | | | | | 12.23% | | | | | 9.76% | | | | | 13.13% | | | | | 12.47% | | | ||||||||||
Net Interest Margin | | | | 4.30% | | | | | 4.04% | | | | | 3.65% | | | | | 4.08% | | | | | 3.72% | | | | | | 4.30% | | | | | 4.04% | | | | | 3.65% | | | | | 4.08% | | | | | 3.72% | | | ||||||||||
Efficiency Ratio | | | | 40.3% | | | | | 57.5% | | | | | 62.2% | | | | | 45.3% | | | | | 50.8% | | | | | | 40.3% | | | | | 57.5% | | | | | 62.2% | | | | | 45.3% | | | | | 50.8% | | | ||||||||||
Net Interest Income to Average Assets | | | | 2.02% | | | | | 3.77% | | | | | 3.41% | | | | | 3.98% | | | | | 3.52% | | | | | | 4.04% | | | | | 3.77% | | | | | 3.41% | | | | | 3.98% | | | | | 3.52% | | | ||||||||||
Noninterest Income to Average Assets | | | | 1.31% | | | | | 1.00% | | | | | 0.67% | | | | | 0.64% | | | | | 0.43% | | | | | | 2.62% | | | | | 1.00% | | | | | 0.67% | | | | | 0.64% | | | | | 0.43% | | | ||||||||||
Noninterest Expense to Average Assets | | | | 1.34% | | | | | 2.25% | | | | | 2.67% | | | | | 1.74% | | | | | 1.98% | | | | | | 2.69% | | | | | 2.25% | | | | | 2.67% | | | | | 1.74% | | | | | 1.98% | | | ||||||||||
Noninterest Income/Revenue | | | | 39.3% | | | | | 22.8% | | | | | 16.3% | | | | | 14.2% | | | | | 11.1% | | | | | | 39.3% | | | | | 22.8% | | | | | 16.3% | | | | | 14.2% | | | | | 11.1% | | |
| | | For the Year-to-Date Period Ending on the Most Recent Financial Quarter Available, | | |||||||||||||||||||||||||||
| | | | | | | | | Nationwide Peer Group | | | Ethnic Peer Group | | ||||||||||||||||||
| | | MetroCity | | | 75th Percentile | | | Median | | | 75th Percentile | | | Median | | |||||||||||||||
Nonperforming Assets to Loans and OREO | | | | | 1.41% | | | | | | 0.51% | | | | | | 0.89% | | | | | | 0.16% | | | | | | 0.36% | | |
ALL to Loans Held for Investment | | | | | 0.54% | | | | | | 1.11% | | | | | | 0.94% | | | | | | 0.96% | | | | | | 0.92% | | |
Net Charge-offs to Average Loans | | | | | 0.03% | | | | | | 0.00% | | | | | | 0.04% | | | | | | (0.00%) | | | | | | 0.02% | | |
| | | Summary Demographic Information | | |||||||||||||||||||||||||||||||||||||||
| | | Population | | | Median Household Income | | | | | | | | ||||||||||||||||||||||||||||||
MSA Name | | | 2019 (actual) | | | 2014 – 2019 Growth | | | 2019 – 2024 Proj. Growth | | | 2019 ($) | | | 2014 – 2019 Growth | | | 2019 – 2024 Proj. Growth | | | Number of Businesses | | |||||||||||||||||||||
Atlanta-Sandy Springs-Alpharetta, GA | | | | | 6,017,552 | | | | | | 8.0% | | | | | | 6.5% | | | | | | 68,974 | | | | | | 31.3% | | | | | | 11.8% | | | | | | 221,070 | | |
Auburn-Opelika, AL | | | | | 165,585 | | | | | | 8.7% | | | | | | 5.8% | | | | | | 50,561 | | | | | | 22.6% | | | | | | 8.1% | | | | | | 4,681 | | |
Dallas-Fort Worth-Arlington, TX | | | | | 7,575,979 | | | | | | 10.0% | | | | | | 7.7% | | | | | | 69,458 | | | | | | 22.4% | | | | | | 7.6% | | | | | | 240,876 | | |
Houston-The Woodlands-Sugar Land, TX | | | | | 7,092,836 | | | | | | 11.6% | | | | | | 8.0% | | | | | | 65,702 | | | | | | 16.2% | | | | | | 2.4% | | | | | | 213,685 | | |
Montgomery, AL | | | | | 374,026 | | | | | | (0.7%) | | | | | | 0.7% | | | | | | 51,310 | | | | | | 9.3% | | | | | | 8.9% | | | | | | 15,237 | | |
New York-Newark-Jersey City, NY-NJ-PA | | | | | 20,432,620 | | | | | | 2.2% | | | | | | 2.1% | | | | | | 77,981 | | | | | | 20.8% | | | | | | 10.2% | | | | | | 810,883 | | |
Tampa-St. Petersburg-Clearwater, FL | | | | | 3,171,289 | | | | | | 9.9% | | | | | | 6.8% | | | | | | 55,732 | | | | | | 27.1% | | | | | | 10.8% | | | | | | 112,371 | | |
Washington-Arlington-Alexandria, DC-VA-MD-WV | | | | | 6,311,930 | | | | | | 5.6% | | | | | | 5.2% | | | | | | 102,260 | | | | | | 11.3% | | | | | | 7.0% | | | | | | 219,675 | | |
United States of America | | | | | 329,236,175 | | | | | | 3.8% | | | | | | 3.6% | | | | | | 63,174 | | | | | | 22.5% | | | | | | 8.8% | | | | | | 12,492,759 | | |
(Dollars in thousands) | | | Total Loans Held for Investment | | | Percentage of total loans | | ||||||
Construction and development | | | | $ | 37,132 | | | | | | 3.1% | | |
Commercial real estate | | | | | 420,332 | | | | | | 35.3 | | |
Commercial and industrial | | | | | 43,771 | | | | | | 3.7 | | |
Consumer | | | | | 1,936 | | | | | | 0.2 | | |
Residential real estate | | | | | 687,389 | | | | | | 57.7 | | |
Other | | | | | 351 | | | | | | 0.0 | | |
Gross loans held for investment | | | | $ | 1,190,911 | | | | | | 100.0% | | |
Office | | | Location | |
Main Office | | | 5114 Buford Highway Doraville, GA 30340 | |
Duluth Office | | | 3725 Old Norcross Road, Suite A Duluth, GA 30096 | |
Johns Creek Office | | | 10820 Abbotts Bridge Road, Suite 140 Johns Creek, GA 30097 | |
Suwanee Office | | | 2790 Lawrenceville-Suwanee Rd, Suite 105 Suwanee, GA 30024 | |
Sugarloaf Office | | | 1295 Old Peachtree Road, Suite 180 Suwanee, GA 30024 | |
Opelika Office | | | 1805 Gateway Drive Opelika, AL 36801 | |
Norcross Office | | | 5385 Jimmy Carter Blvd, Suite 100 Norcross, GA 30093 | |
Centerville Office | | | 5900 Centreville Crest Lane, Unit B Centreville, VA 20121 | |
Montgomery Office | | | 2779 Bell Road Montgomery, AL 36117 | |
Fort Lee Office | | | 1636 Parker Avenue Fort Lee, NJ 07024 | |
Bayside Office | | | 254-45 Northern Blvd, Suite A Bayside, NY 11361 | |
Grand Prairie Office | | | 2615 W. Pioneer Parkway, Suite 101 Grand Prairie, TX 75051 | |
Dallas Office | | | 9788 Walnut Street, Suite 200 Dallas, TX 75243 | |
Peachtree Corners Office | | | 3280 Holcomb Bridge Road Norcross, GA 30092 | |
East Cobb Office | | | 4273 Roswell Road Marietta, GA 30062 | |
Annandale Office | | | 7023 Little River Turnpike, Suite 101 Annandale, VA 22003 | |
Flushing Office | | | 138-35 39th Avenue Flushing, NY 11354 | |
Houston Office | | | 9888 Bellaire Blvd, Suite 147 Houston, TX 77036 | |
Tampa Office | | | 6202 Commerce Palms Drive Tampa, FL 33647 | |
Name | | | Age | | | Position | | | Director Since | | | Class | |
Nack Y. Paek | | | 77 | | | Chairman of the Board and Chief Executive Officer of the Company and Executive Chairman of the Bank | | | 2006 | | | II | |
Farid Tan | | | 62 | | | Director, President and Chief Financial Officer of the Company and Chief Executive Officer and Chief Financial Officer of the Bank | | | 2006 | | | III | |
Howard Hwasaeng Kim | | | 62 | | | Director, Executive Vice President of the Company and Chief Lending Officer, Chief Operating Officer and President of the Bank | | | 2017 | | | I | |
William M. Hungeling | | | 70 | | | Director | | | 2006 | | | II | |
Francis Lai | | | 65 | | | Director | | | 2010 | | | II | |
Don T.P. Leung | | | 61 | | | Director | | | 2006 | | | III | |
Feiying Lu | | | 55 | | | Director | | | 2006 | | | I | |
Young Park | | | 71 | | | Director | | | 2006 | | | III | |
Ajit A. Patel | | | 54 | | | Director | | | 2006 | | | III | |
Frank S. Rhee | | | 54 | | | Director | | | 2006 | | | I | |
Sam Sang-Koo Shim | | | 76 | | | Director | | | 2006 | | | I | |
Name | | | Age | | | Position | |
Nack Y. Paek | | | 77 | | | Chief Executive Officer of the Company and Executive Chairman of the Bank | |
Farid Tan | | | 62 | | | President and Chief Financial Officer of the Company and Chief Executive Officer and Chief Financial Officer of the Bank | |
Howard Kim | | | 62 | | | Executive Vice President of the Company and Chief Lending Officer, Chief Operating Officer and President of the Bank | |
S. Benton Gunter | | | 78 | | | Executive Vice President and Chief Administrative Officer of the Company and the Bank | |
Name and Principal Position | | | Year | | | Salary ($)(1) | | | Stock Awards ($)(2) | | | Option Awards ($)(3) | | | Non-Equity Incentive Plan Compensation ($)(4) | | | All Other Compensation ($)(5) | | | Total ($) | | ||||||||||||||||||
Nack Y. Paek Chief Executive Officer | | | 2018 | | | | | 334,000 | | | | | | 501,542 | | | | | | 476,000 | | | | | | 1,002,000 | | | | | | 10,800 | | | | | | 2,324,342 | | |
| 2017 | | | | | 321,077 | | | | | | 342,568 | | | | | | — | | | | | | 668,000 | | | | | | 10,800 | | | | | | 1,342,445 | | | ||
Farid Tan President and Chief Financial Officer | | | 2018 | | | | | 334,000 | | | | | | 501,542 | | | | | | 476,000 | | | | | | 1,002,000 | | | | | | 10,800 | | | | | | 2,324,342 | | |
| 2017 | | | | | 321,077 | | | | | | 342,568 | | | | | | — | | | | | | 668,000 | | | | | | 10,800 | | | | | | 1,342,445 | | | ||
Howard HwaSaeng Kim Executive Vice President, Chief Lending Officer and Chief Operating Officer | | | 2018 | | | | | 281,000 | | | | | | 228,585 | | | | | | 476,000 | | | | | | 843,000 | | | | | | 10,800 | | | | | | 1,899,385 | | |
| 2017 | | | | | 266,231 | | | | | | 244,276 | | | | | | — | | | | | | 562,000 | | | | | | 10,800 | | | | | | 1,083,307 | | |
Name | | | Option Awards | | | Stock Awards | | ||||||||||||||||||||||||||||||
| Number of Securities Underlying Unexercised Options Exercisable (#) | | | Number of Securities Underlying Unexercised Options Unexercisable (#) | | | Options Exercise Price ($) | | | Option Expiration Date | | | Number of Shares or Units of Stock That Have Not Vested (#) | | | Market Value of Shares or Units of Stock That Have Not Vested ($)(5) | | ||||||||||||||||||||
Nack Paek | | | | | — | | | | | | 80,000(1) | | | | | | 12.70 | | | | | | 7/18/2028 | | | | | | 17,178(2) | | | | | | 283,437 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | 31,956(3) | | | | | | 527,274 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | 38,188(4) | | | | | | 630,102 | | |
Farid Tan | | | | | — | | | | | | 80,000(1) | | | | | | 12.70 | | | | | | 7/18/2028 | | | | | | 17,178(2) | | | | | | 283,437 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | 31,956(3) | | | | | | 527,274 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | 38,188(4) | | | | | | 630,102 | | |
Howard HwaSaeng Kim | | | | | — | | | | | | 80,000(1) | | | | | | 12.70 | | | | | | 7/18/2028 | | | | | | 14,868(2) | | | | | | 245,322 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | 22,786(3) | | | | | | 375,969 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | 21,974(4) | | | | | | 362,571 | | |
Name | | | Fees Earned or Paid in Cash ($) | | | Stock Awards ($)(1)(2) | | | Total ($) | | |||||||||
William M. Hungeling | | | | | 44,500 | | | | | | 19,996 | | | | | | 64,496 | | |
Francis Lai | | | | | 45,000 | | | | | | 19,996 | | | | | | 64,996 | | |
Don T.P. Leung | | | | | 46,000 | | | | | | 19,996 | | | | | | 65,996 | | |
Feiying Lu | | | | | 41,750 | | | | | | 19,996 | | | | | | 61,746 | | |
Young Park | | | | | 37,250 | | | | | | 19,996 | | | | | | 57,246 | | |
Ajit A. Patel | | | | | 41,000 | | | | | | 19,996 | | | | | | 60,996 | | |
Frank S. Rhee | | | | | 41,000 | | | | | | 19,996 | | | | | | 60,996 | | |
Sam Sang-Koo Shim | | | | | 36,000 | | | | | | 19,996 | | | | | | 55,996 | | |
| | | Prior to this offering | | | After this offering | | | | Prior to this offering | | | After this offering | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Assuming underwriters’ option to purchase additional shares is not exercised | | Assuming underwriters option to purchase additional shares is exercised in full | | | Assuming underwriters’ option to purchase additional shares is not exercised | | Assuming underwriters option to purchase additional shares is exercised in full | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Number of shares beneficially owned | | Number of shares beneficially owned | | Number of shares beneficially owned | | | Number of shares beneficially owned | | Number of shares beneficially owned | | Number of shares beneficially owned | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | | Number of shares | | Percentage of shares | | Number of shares | | Percentage of shares | | Number of shares | | Percentage of shares | | | Number of shares | | Percentage of shares | | Number of shares | | Percentage of shares | | Number of shares | | Percentage of shares | | ||||||||||||||||||||||||||||||||||||||||||
Directors and Named Executive Officers | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||
S. Benton Gunter | | | | 1,218 | | | | | * | | | | | | | % | | | | | | | % | | | | | | 1,218 | | | | | * | | | | | 1,128 | | | | | * | | | | | 1,218 | | | | | * | | | ||||||||||||
William M. Hungeling(1) | | | | 839,666 | | | | | 3.45% | | | | | | | % | | | | | | | % | | | | | | 839,666 | | | | | 3.45% | | | | | 581,666 | | | | | 2.30% | | | | | 581,666 | | | | | 2.27% | | | ||||||||||||
Howard Hwasaeng Kim(2) | | | | 580,990 | | | | | 2.39% | | | | | | | % | | | | | | | % | | | | | | 580,990 | | | | | 2.39% | | | | | 520,990 | | | | | 2.06% | | | | | 520,990 | | | | | 2.04% | | | ||||||||||||
Francis Lai(3) | | | | 111,818 | | | | | * | | | | | | | % | | | | | | | % | | | | | | 111,818 | | | | | * | | | | | 111,818 | | | | | * | | | | | 111,818 | | | | | * | | | ||||||||||||
Don Leung(4) | | | | 1,276,498 | | | | | 5.25% | | | | | | | % | | | | | | | % | | | | | | 1,276,498 | | | | | 5.25% | | | | | 1,176,498 | | | | | 4.65% | | | | | 1,176,498 | | | | | 4.60% | | | ||||||||||||
Feiying Lu(5) | | | | 1,831,178 | | | | | 7.53% | | | | | | | % | | | | | | | % | | | | | | 1,831,178 | | | | | 7.53% | | | | | 1,561,178 | | | | | 6.17% | | | | | 1,561,178 | | | | | 6.10% | | | ||||||||||||
Nack Y. Paek(6) | | | | 1,286,926 | | | | | 5.29% | | | | | | | % | | | | | | | % | | | | | | 1,286,926 | | | | | 5.29% | | | | | 1,286,926 | | | | | 5.09% | | | | | 1,286,926 | | | | | 5.03% | | | ||||||||||||
Young Park | | | | 818,266 | | | | | 3.37% | | | | | | | % | | | | | | | % | | | | | | 818,266 | | | | | 3.37% | | | | | 818,266 | | | | | 3.23% | | | | | 818,266 | | | | | 3.20% | | | ||||||||||||
Ajit Patel(7) | | | | 1,020,906 | | | | | 4.20% | | | | | | | % | | | | | | | % | | | | | | 1,020,906 | | | | | 4.20% | | | | | 945,906 | | | | | 3.74% | | | | | 945,906 | | | | | 3.70% | | | ||||||||||||
Frank S. Rhee | | | | 11,818 | | | | | * | | | | | | | % | | | | | | | % | | | | | | 11,818 | | | | | * | | | | | 11,818 | | | | | * | | | | | 11,818 | | | | | * | | | ||||||||||||
Sam Sang-Koo Shim | | | | 684,770 | | | | | 2.82% | | | | | | | % | | | | | | | % | | | | | | 684,770 | | | | | 2.82% | | | | | 600,770 | | | | | 2.37% | | | | | 600,770 | | | | | 2.35% | | | ||||||||||||
Farid Tan(8) | | | | 763,614 | | | | | 3.14% | | | | | | | % | | | | | | | % | | | | | | 763,614 | | | | | 3.14% | | | | | 763,614 | | | | | 3.02% | | | | | 763,614 | | | | | 2.98% | | | ||||||||||||
Directors and Executive Officers as a Group (12 Persons) | | | | 9,227,668 | | | | | 37.97% | | | | | | | % | | | | | | | % | | | | | | 9,227,668 | | | | | 37.97% | | | | | 8,380,668 | | | | | 33.12% | | | | | 8,380,668 | | | | | 32.74% | | |
| | | | | | | | | | | | | | | | | | | | | Shares Beneficially Owned After the Offering | | |||||||||||||||
| | | Shares Beneficially Owned Prior to the Offering | | | Shares Offered Number | | | | | | | | | If Option Not Exercised % (Approx.) | | | If Option Exercised in Full % (Approx.) | | ||||||||||||||||||
Name | | | Number | | | % (Approx.) | | | Number | | |||||||||||||||||||||||||||
Selling shareholders | | | | | | | | ||||||||||||||||||||||||||||||
EEE Holdings, LLC | | | | | 520,000 | | | | | | 2.14% | | | | | | 92,000 | | | | | | 428,000 | | | | | | 1.69% | | | | | | 1.67% | | |
Hungeling Asset Management, LLC | | | | | 839,666 | | | | | | 3.45% | | | | | | 258,000 | | | | | | 581,666 | | | | | | 2.30% | | | | | | 2.27% | | |
Howard Hwasaeng Kim | | | | | 580,990 | | | | | | 2.39% | | | | | | 60,000 | | | | | | 520,990 | | | | | | 2.06% | | | | | | 2.04% | | |
Don TP Leung & Evonne Yun Yong Row-Leung | | | | | 1,276,498 | | | | | | 5.25% | | | | | | 100,000 | | | | | | 1,176,498 | | | | | | 4.65% | | | | | | 4.60% | | |
LST Investment, LLC | | | | | 1,831,178 | | | | | | 7.53% | | | | | | 270,000 | | | | | | 1,561,178 | | | | | | 6.17% | | | | | | 6.10% | | |
Ajit Patel | | | | | 1,020,906 | | | | | | 4.20% | | | | | | 75,000 | | | | | | 945,906 | | | | | | 3.74% | | | | | | 3.70% | | |
Sam Sang-Koo Shim | | | | | 684,770 | | | | | | 2.82% | | | | | | 84,000 | | | | | | 600,770 | | | | | | 2.37% | | | | | | 2.35% | | |
| | | | | 6,754,008 | | | | | | 27.79% | | | | | | 939,000 | | | | | | 5,815,008 | | | | | | 22.98% | | | | | | 22.72% | | |
Underwriter | | | Number of Shares | | |||
Keefe, Bruyette & Woods, Inc. | | | | | | | |
Raymond James & Associates, Inc. | | | | | | | |
Hovde Group, LLC | | | | | | | |
Total | | | | | | |
| | | Per Share | | | Without Option | | | With Full Option | | |||||||||
Public offering price | | | | $ | | | | | $ | | | | | $ | | | |||
Underwriting discounts and commissions | | | | $ | | | | | | $ | | | | | | $ | | | |
Proceeds, before expenses, to us | | | | $ | | | | | | $ | | | | | | $ | | | |
Proceeds to selling shareholders, before expenses | | | | $ | | | | | | $ | | | | | | $ | | | |
| For the six months ended June 30, 2019 and 2018 (unaudited) | | | | | | | |
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| For the years ended December 31, 2018 and 2017 | | | | | | | |
| | | | | F-31 | | | |
| | | | | F-32 | | | |
| | | | | F-33 | | | |
| | | | | F-34 | | | |
| | | | | F-35 | | | |
| | | | | F-36 | | | |
| | | | | F-37 | | |
| | | June 30, 2019 | | | December 31, 2018 | | ||||||
ASSETS | | | | | | | | | | | | | |
Cash and due from banks | | | | $ | 151,117 | | | | | $ | 130,263 | | |
Federal funds sold | | | | | 5,966 | | | | | | 8,164 | | |
Cash and cash equivalents | | | | | 157,083 | | | | | | 138,427 | | |
Securities purchased under agreements to resell | | | | | 15,000 | | | | | | 15,000 | | |
Securities available for sale (at fair value) | | | | | 17,846 | | | | | | 18,888 | | |
Loans, less allowance for loan losses of $6,483 and $6,645, respectively | | | | | 1,181,936 | | | | | | 1,136,930 | | |
Loans held for sale | | | | | 69,686 | | | | | | 56,865 | | |
Accrued interest receivable | | | | | 5,290 | | | | | | 4,957 | | |
Federal Home Loan Bank stock | | | | | 1,292 | | | | | | 1,163 | | |
Premises and equipment, net | | | | | 14,465 | | | | | | 14,391 | | |
Operating lease right-of-use asset | | | | | 12,783 | | | | | | — | | |
SBA servicing asset, net | | | | | 8,682 | | | | | | 8,446 | | |
Mortgage servicing asset, net | | | | | 16,771 | | | | | | 14,934 | | |
Bank owned life insurance | | | | | 19,982 | | | | | | 19,749 | | |
Other assets | | | | | 3,693 | | | | | | 2,900 | | |
Total assets | | | | $ | 1,524,509 | | | | | $ | 1,432,650 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | |
Non-interest-bearing demand | | | | $ | 309,343 | | | | | $ | 299,182 | | |
Interest-bearing | | | | | 986,844 | | | | | | 945,050 | | |
Total deposits | | | | | 1,296,187 | | | | | | 1,244,232 | | |
Other borrowings | | | | | 3,585 | | | | | | 4,257 | | |
Operating lease liability | | | | | 13,253 | | | | | | — | | |
Accrued interest payable | | | | | 1,415 | | | | | | 1,251 | | |
Other liabilities | | | | | 25,752 | | | | | | 14,302 | | |
Total liabilities | | | | | 1,340,192 | | | | | | 1,264,042 | | |
Shareholders’ equity: | | | | | | | | | | | | | |
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued or outstanding | | | | | — | | | | | | — | | |
Common stock, $0.01 par value, 40,000,000 shares authorized, 24,305,378 and 24,258,062 shares issued and outstanding | | | | | 243 | | | | | | 242 | | |
Additional paid-in capital | | | | | 39,096 | | | | | | 39,915 | | |
Retained earnings | | | | | 144,989 | | | | | | 128,555 | | |
Accumulated other comprehensive loss | | | | | (11) | | | | | | (104) | | |
Total shareholders’ equity | | | | | 184,317 | | | | | | 168,608 | | |
Total liabilities and shareholders’ equity | | | | $ | 1,524,509 | | | | | $ | 1,432,650 | | |
| | | 2019 | | | 2018 | | ||||||
Interest and dividend income: | | | | | | | | | | | | | |
Loans, including fees | | | | $ | 38,998 | | | | | $ | 33,977 | | |
Other investment income | | | | | 1,364 | | | | | | 921 | | |
Federal funds sold | | | | | 318 | | | | | | 192 | | |
Total interest income | | | | | 40,680 | | | | | | 35,090 | | |
Interest expense: | | | | | | | | | | | | | |
Deposits | | | | | 10,502 | | | | | | 5,644 | | |
FHLB advances and other borrowings | | | | | 126 | | | | | | 629 | | |
Total interest expense | | | | | 10,628 | | | | | | 6,273 | | |
Net interest income | | | | | 30,052 | | | | | | 28,817 | | |
Provision for loan losses | | | | | — | | | | | | 871 | | |
Net interest income after provision for loan losses | | | | | 30,052 | | | | | | 27,946 | | |
Noninterest income: | | | | | | | | | | | | | |
Service charges on deposit accounts | | | | | 517 | | | | | | 520 | | |
Other service charges, commissions and fees | | | | | 5,457 | | | | | | 4,876 | | |
Gain on sale of residential mortgage loans | | | | | 3,553 | | | | | | 2,351 | | |
Mortgage servicing income, net | | | | | 4,654 | | | | | | 5,966 | | |
SBA servicing income, net | | | | | 2,180 | | | | | | 1,912 | | |
Gain on sale of SBA loans | | | | | 2,892 | | | | | | 3,418 | | |
Other income | | | | | 279 | | | | | | 317 | | |
Total noninterest income | | | | | 19,532 | | | | | | 19,360 | | |
Noninterest expense: | | | | | | | | | | | | | |
Salaries and employee benefits | | | | | 12,353 | | | | | | 10,571 | | |
Occupancy | | | | | 2,386 | | | | | | 1,878 | | |
Data processing | | | | | 520 | | | | | | 430 | | |
Advertising | | | | | 313 | | | | | | 311 | | |
Federal deposit insurance | | | | | 192 | | | | | | 218 | | |
Other expenses | | | | | 4,234 | | | | | | 4,262 | | |
Total noninterest expense | | | | | 19,998 | | | | | | 17,670 | | |
Income before provision for income taxes | | | | | 29,586 | | | | | | 29,636 | | |
Provision for income taxes | | | | | 7,894 | | | | | | 7,891 | | |
Net income available to common shareholders | | | | $ | 21,692 | | | | | $ | 21,745 | | |
Earnings per share: | | | | | | | | | | | | | |
Basic | | | | $ | 0.90 | | | | | $ | 0.90 | | |
Diluted | | | | $ | 0.89 | | | | | $ | 0.89 | | |
| | | 2019 | | | 2018 | | ||||||
Net income | | | | $ | 21,692 | | | | | $ | 21,745 | | |
Other comprehensive income (loss): | | | | | | | | | | | | | |
Unrealized holding gains (losses) on securities available for sale arising during the period | | | | | 119 | | | | | | (77) | | |
Tax effect | | | | | (26) | | | | | | 3 | | |
Other comprehensive income (loss) | | | | | 93 | | | | | | (74) | | |
Comprehensive income | | | | $ | 21,785 | | | | | $ | 21,671 | | |
| | | Common Stock(1) | | | Additional Paid-in Capital(1) | | | Retained Earnings | | | Accumulated Other Comprehensive Income (Loss) | | | Total | | |||||||||||||||||||||
| Number of Shares | | | Amount | | ||||||||||||||||||||||||||||||||
Balance, January 1, 2018 | | | | | 24,074,882 | | | | | $ | 240 | | | | | $ | 38,418 | | | | | $ | 96,525 | | | | | $ | (68) | | | | | $ | 135,115 | | |
Stock based compensation expense | | | | | — | | | | | | — | | | | | | 349 | | | | | | — | | | | | | — | | | | | | 349 | | |
Vesting of restricted stock | | | | | 166,324 | | | | | | 2 | | | | | | (2) | | | | | | — | | | | | | — | | | | | | — | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 21,745 | | | | | | — | | | | | | 21,745 | | |
Impact of adoption of new accounting standard(2) | | | | | — | | | | | | — | | | | | | — | | | | | | (13) | | | | | | 13 | | | | | | — | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (74) | | | | | | (74) | | |
Dividends on common stock ($0.18 per share) | | | | | — | | | | | | — | | | | | | — | | | | | | (4,384) | | | | | | — | | | | | | (4,384) | | |
Balance, June 30, 2018 | | | | | 24,241,206 | | | | | | 242 | | | | | | 38,765 | | | | | | 113,873 | | | | | | (129) | | | | | | 152,751 | | |
Balance, January 1, 2019 | | | | | 24,258,062 | | | | | $ | 242 | | | | | $ | 39,915 | | | | | $ | 128,555 | | | | | $ | (104) | | | | | $ | 168,608 | | |
Stock based compensation expense | | | | | — | | | | | | — | | | | | | 667 | | | | | | — | | | | | | — | | | | | | 667 | | |
Vesting of restricted stock | | | | | 157,316 | | | | | | 2 | | | | | | (2) | | | | | | — | | | | | | — | | | | | | — | | |
Repurchase and retirement of common stock | | | | | (110,000) | | | | | | (1) | | | | | | (1,484) | | | | | | — | | | | | | — | | | | | | (1,485) | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 21,692 | | | | | | — | | | | | | 21,692 | | |
Impact of adoption of new accounting standard(3) | | | | | — | | | | | | — | | | | | | — | | | | | | (362) | | | | | | — | | | | | | (362) | | |
Other comprehensive income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 93 | | | | | | 93 | | |
Dividends on common stock ($0.20 per share) | | | | | — | | | | | | — | | | | | | — | | | | | | (4,896) | | | | | | — | | | | | | (4,896) | | |
Balance, June 30, 2019 | | | | | 24,305,378 | | | | | $ | 243 | | | | | $ | 39,096 | | | | | $ | 144,989 | | | | | $ | (11) | | | | | $ | 184,317 | | |
| | | 2019 | | | 2018 | | ||||||
Cash flow from operating activities: | | | | | | | | | | | | | |
Net income | | | | $ | 21,692 | | | | | $ | 21,745 | | |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | | | | | | | | | | | | | |
Depreciation, amortization and accretion | | | | | 1,349 | | | | | | 419 | | |
Provision for loan losses | | | | | — | | | | | | 871 | | |
Stock based compensation expense | | | | | 667 | | | | | | 349 | | |
Loss on sale of foreclosed real estate | | | | | — | | | | | | (33) | | |
Origination of residential real estate loans held for sale | | | | | (273,864) | | | | | | (273,752) | | |
Proceeds from sales of residential real estate loans | | | | | 264,596 | | | | | | 233,077 | | |
Gain on sale of residential mortgages | | | | | (3,553) | | | | | | (2,351) | | |
Origination of SBA loans held for sale | | | | | (60,867) | | | | | | (59,512) | | |
Proceeds from sales of SBA loans held for sale | | | | | 63,759 | | | | | | 62,929 | | |
Gain on sale of SBA loans | | | | | (2,892) | | | | | | (3,418) | | |
Increase in cash value of bank owned life insurance | | | | | (233) | | | | | | (242) | | |
Increase in accrued interest receivable | | | | | (333) | | | | | | (279) | | |
(Increase) decrease in SBA servicing rights | | | | | (236) | | | | | | 52 | | |
Increase in mortgage servicing rights | | | | | (1,837) | | | | | | (4,393) | | |
(Increase) decrease in other assets | | | | | (818) | | | | | | 3,523 | | |
Increase in accrued interest payable | | | | | 164 | | | | | | 179 | | |
Increase in other liabilities | | | | | 10,731 | | | | | | 6,395 | | |
Net cash flow provided (used) by operating activities | | | | | 18,325 | | | | | | (14,441) | | |
Cash flow from investing activities: | | | | | | | | | | | | | |
Increase in loans, net | | | | | (45,006) | | | | | | (26,871) | | |
Proceeds from maturities, calls or paydowns of securities available for sale | | | | | 1,143 | | | | | | 512 | | |
(Purchase) redemption of Federal Home Loan Bank stock | | | | | (129) | | | | | | 4,504 | | |
Purchases of premises and equipment | | | | | (579) | | | | | | (1,443) | | |
Proceeds from sales of foreclosed real estate owned | | | | | — | | | | | | 904 | | |
Net cash flow used by investing activities | | | | | (44,571) | | | | | | (22,394) | | |
Cash flow from financing activities: | | | | | | | | | | | | | |
Dividends paid – common stock | | | | | (4,896) | | | | | | (4,384) | | |
Repurchase of common stock | | | | | (1,485) | | | | | | — | | |
Increase in deposits, net | | | | | 51,955 | | | | | | 143,314 | | |
Decrease in other borrowings, net | | | | | (672) | | | | | | (629) | | |
(Repayments) proceeds from Federal Home Loan Bank advances | | | | | — | | | | | | (110,000) | | |
Net cash flow provided by financing activities | | | | | 44,902 | | | | | | 28,301 | | |
Net change in cash and cash equivalents | | | | | 18,656 | | | | | | (8,534) | | |
Cash and cash equivalents at beginning of period | | | | | 138,427 | | | | | | 95,833 | | |
Cash and cash equivalents at end of period | | | | $ | 157,083 | | | | | $ | 87,299 | | |
Supplemental schedule of noncash investing and financing activities: | | | | | | | | | | | | | |
Transfer of loan principal and accrued interest to foreclosed real estate, net of write-downs | | | | $ | — | | | | | $ | 261 | | |
Initial recognition of operating lease right-of-use assets | | | | $ | 13,610 | | | | | $ | — | | |
Initial recognition of operating lease liabilities | | | | $ | 14,011 | | | | | $ | — | | |
Supplemental disclosures of cash flow information – Cash paid during the year for: | | | | | | | | | | | | | |
Interest | | | | $ | 10,464 | | | | | $ | 6,094 | | |
Income taxes | | | | $ | 6,340 | | | | | $ | 5,220 | | |
| | | June 30, 2019 | | |||||||||||||||||||||
(Dollars in thousands) | | | Gross Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Estimated Fair Value | | ||||||||||||
Obligations of U.S. Government entities and agencies | | | | $ | 14,280 | | | | | $ | — | | | | | $ | — | | | | | $ | 14,280 | | |
States and political subdivisions | | | | | 1,247 | | | | | | 22 | | | | | | — | | | | | | 1,269 | | |
Mortgage-backed GSE residential | | | | | 2,350 | | | | | | — | | | | | | (53) | | | | | | 2,297 | | |
Total | | | | $ | 17,877 | | | | | $ | 22 | | | | | $ | (53) | | | | | $ | 17,846 | | |
| | | December 31, 2018 | | |||||||||||||||||||||
(Dollars in thousands) | | | Gross Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Estimated Fair Value | | ||||||||||||
Obligations of U.S. Government entities and agencies | | | | $ | 15,183 | | | | | $ | — | | | | | $ | — | | | | | $ | 15,183 | | |
States and political subdivisions | | | | | 1,248 | | | | | | — | | | | | | (35) | | | | | | 1,213 | | |
Mortgage-backed GSE residential | | | | | 2,607 | | | | | | — | | | | | | (115) | | | | | | 2,492 | | |
Total | | | | $ | 19,038 | | | | | $ | — | | | | | $ | (150) | | | | | $ | 18,888 | | |
| | | Securities Available for Sale | | |||||||||
(Dollars in thousands) | | | Amortized Cost | | | Estimated Fair Value | | ||||||
Due in one year or less | | | | $ | 608 | | | | | $ | 608 | | |
Due after one year but less than five years | | | | | 2,858 | | | | | | 2,858 | | |
Due after five years but less than ten years | | | | | 4,620 | | | | | | 4,642 | | |
Due in more than ten years | | | | | 7,441 | | | | | | 7,441 | | |
Mortgage-backed GSE residential | | | | | 2,350 | | | | | | 2,297 | | |
Total | | | | $ | 17,877 | | | | | $ | 17,846 | | |
| | | June 30, 2019 | | |||||||||||||||||||||
| | | Twelve Months or Less | | | Over Twelve Months | | ||||||||||||||||||
(Dollars in thousands) | | | Gross Unrealized Losses | | | Estimated Fair Value | | | Gross Unrealized Losses | | | Estimated Fair Value | | ||||||||||||
States and political subdivisions | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Mortgage-backed GSE residential | | | | | — | | | | | | — | | | | | | (53) | | | | | | 2,292 | | |
Total | | | | $ | — | | | | | $ | — | | | | | $ | (53) | | | | | $ | 2,292 | | |
|
| | | December 31, 2018 | | |||||||||||||||||||||
| | | Twelve Months or Less | | | Over Twelve Months | | ||||||||||||||||||
(Dollars in thousands) | | | Gross Unrealized Losses | | | Estimated Fair Value | | | Gross Unrealized Losses | | | Estimated Fair Value | | ||||||||||||
States and political subdivisions | | | | $ | (35) | | | | | $ | 1,213 | | | | | $ | — | | | | | $ | — | | |
Mortgage-backed GSE residential | | | | | — | | | | | | — | | | | | | (115) | | | | | | 2,492 | | |
Total | | | | $ | (35) | | | | | $ | 1,213 | | | | | $ | (115) | | | | | $ | 2,492 | | |
(Dollars in thousands) | | | June 30, 2019 | | | December 31, 2018 | | ||||||
Construction and development | | | | $ | 37,132 | | | | | $ | 42,718 | | |
Commercial real estate | | | | | 420,332 | | | | | | 396,598 | | |
Commercial and industrial | | | | | 43,771 | | | | | | 33,100 | | |
Consumer | | | | | 1,936 | | | | | | 2,804 | | |
Residential real estate | | | | | 687,389 | | | | | | 670,341 | | |
Other | | | | | 351 | | | | | | 153 | | |
Total loans receivable | | | | | 1,190,911 | | | | | | 1,145,714 | | |
Unearned income | | | | | (2,492) | | | | | | (2,139) | | |
Allowance for loan losses | | | | | (6,483) | | | | | | (6,645) | | |
Loans, net | | | | $ | 1,181,936 | | | | | $ | 1,136,930 | | |
(Dollars in thousands) | | | Construction and Development | | | Commercial Real Estate | | | Commercial and Industrial | | | Consumer | | | Residential Real Estate | | | Other | | | Unallocated | | | Total | | ||||||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 235 | | | | | $ | 2,601 | | | | | $ | 380 | | | | | $ | 387 | | | | | $ | 3,042 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,645 | | |
Charge-offs | | | | | — | | | | | | — | | | | | | (14) | | | | | | (331) | | | | | | — | | | | | | — | | | | | | — | | | | | | (345) | | |
Recoveries | | | | | — | | | | | | 11 | | | | | | — | | | | | | 172 | | | | | | — | | | | | | — | | | | | | — | | | | | | 183 | | |
Provision | | | | | (106) | | | | | | (228) | | | | | | 221 | | | | | | (32) | | | | | | 123 | | | | | | 1 | | | | | | 21 | | | | | | — | | |
Ending balance | | | | $ | 129 | | | | | $ | 2,384 | | | | | $ | 587 | | | | | $ | 196 | | | | | $ | 3,165 | | | | | $ | 1 | | | | | $ | 21 | | | | | $ | 6,483 | | |
Ending balance – individually evaluated for impairment | | | | $ | — | | | | | $ | 853 | | | | | $ | 91 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 944 | | |
Ending balance – collectively evaluated for impairment | | | | $ | 129 | | | | | $ | 1,531 | | | | | $ | 496 | | | | | $ | 6 | | | | | $ | 3,165 | | | | | $ | 1 | | | | | $ | 21 | | | | | $ | 5,349 | | |
Ending balance – acquired with deteriorated credit quality | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 190 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 190 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance – individually evaluated for impairment | | | | $ | 1,360 | | | | | $ | 7,968 | | | | | $ | 952 | | | | | $ | — | | | | | $ | 7,661 | | | | | $ | — | | | | | $ | — | | | | | $ | 17,941 | | |
Ending balance – collectively evaluated for impairment | | | | $ | 35,158 | | | | | $ | 410,619 | | | | | $ | 42,686 | | | | | $ | 486 | | | | | $ | 679,728 | | | | | $ | 351 | | | | | $ | — | | | | | $ | 1,169,028 | | |
Ending balance – acquired with deteriorated credit quality | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1,450 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1,450 | | |
Ending balance | | | | $ | 36,518 | | | | | $ | 418,587 | | | | | $ | 43,638 | | | | | $ | 1,936 | | | | | $ | 687,389 | | | | | $ | 351 | | | | | $ | — | | | | | $ | 1,188,419 | | |
(Dollars in thousands) | | | Construction and Development | | | Commercial Real Estate | | | Commercial and Industrial | | | Consumer | | | Residential Real Estate | | | Other | | | Unallocated | | | Total | | ||||||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 127 | | | | | $ | 2,135 | | | | | $ | 261 | | | | | $ | 1,167 | | | | | $ | 3,048 | | | | | $ | 3 | | | | | $ | 184 | | | | | $ | 6,925 | | |
Charge-offs | | | | | — | | | | | | (14) | | | | | | — | | | | | | (1,374) | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,388) | | |
Recoveries | | | | | — | | | | | | 9 | | | | | | 2 | | | | | | 348 | | | | | | — | | | | | | — | | | | | | — | | | | | | 359 | | |
Provision | | | | | 33 | | | | | | 14 | | | | | | — | | | | | | 510 | | | | | | 315 | | | | | | (2) | | | | | | — | | | | | | 870 | | |
Ending balance | | | | $ | 160 | | | | | $ | 2,144 | | | | | $ | 263 | | | | | $ | 651 | | | | | $ | 3,363 | | | | | $ | 1 | | | | | $ | 184 | | | | | $ | 6,766 | | |
Ending balance – individually evaluated for impairment | | | | $ | — | | | | | $ | 703 | | | | | $ | 110 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 813 | | |
Ending balance – collectively evaluated for impairment | | | | $ | 160 | | | | | $ | 1,441 | | | | | $ | 153 | | | | | $ | — | | | | | $ | 3,363 | | | | | $ | 1 | | | | | $ | 184 | | | | | $ | 5,302 | | |
Ending balance – acquired with deteriorated credit quality | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 651 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 651 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance – individually evaluated for impairment | | | | $ | 1,360 | | | | | $ | 6,988 | | | | | $ | 787 | | | | | $ | — | | | | | $ | 2,228 | | | | | $ | — | | | | | $ | — | | | | | $ | 11,363 | | |
Ending balance – collectively evaluated for impairment | | | | $ | 47,576 | | | | | $ | 368,747 | | | | | $ | 43,855 | | | | | $ | 198 | | | | | $ | 617,293 | | | | | $ | 155 | | | | | $ | — | | | | | $ | 1,077,824 | | |
Ending balance – acquired with deteriorated credit quality | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 5,042 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 5,042 | | |
Ending balance | | | | $ | 48,936 | | | | | $ | 375,735 | | | | | $ | 44,642 | | | | | $ | 5,240 | | | | | $ | 619,521 | | | | | $ | 155 | | | | | $ | — | | | | | $ | 1,094,229 | | |
|
(Dollars in thousands) | | | Construction and Development | | | Commercial Real Estate | | | Commercial and Industrial | | | Consumer | | | Residential Real Estate | | | Other | | | Unallocated | | | Total | | ||||||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 127 | | | | | $ | 2,135 | | | | | $ | 261 | | | | | $ | 1,167 | | | | | $ | 3,048 | | | | | $ | 3 | | | | | $ | 184 | | | | | $ | 6,925 | | |
Charge-offs | | | | | — | | | | | | (88) | | | | | | (39) | | | | | | (1,939) | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,066) | | |
Recoveries | | | | | — | | | | | | 22 | | | | | | — | | | | | | 527 | | | | | | — | | | | | | — | | | | | | — | | | | | | 549 | | |
Provision | | | | | 108 | | | | | | 532 | | | | | | 158 | | | | | | 632 | | | | | | (6) | | | | | | (3) | | | | | | (184) | | | | | | 1,237 | | |
Ending balance | | | | $ | 235 | | | | | $ | 2,601 | | | | | $ | 380 | | | | | $ | 387 | | | | | $ | 3,042 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,645 | | |
Ending balance – individually evaluated for impairment | | | | $ | 117 | | | | | $ | 872 | | | | | $ | 110 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1,099 | | |
Ending balance – collectively evaluated for impairment | | | | $ | 118 | | | | | $ | 1,729 | | | | | $ | 270 | | | | | $ | 3 | | | | | $ | 3,042 | | | | | $ | — | | | | | $ | — | | | | | $ | 5,162 | | |
Ending balance – acquired with deteriorated credit quality | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 384 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 384 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance – individually evaluated for impairment | | | | $ | 1,360 | | | | | $ | 8,074 | | | | | $ | 986 | | | | | $ | — | | | | | $ | 1,722 | | | | | $ | — | | | | | $ | — | | | | | $ | 12,142 | | |
Ending balance – collectively evaluated for impairment | | | | $ | 40,928 | | | | | $ | 386,889 | | | | | $ | 32,040 | | | | | $ | 163 | | | | | $ | 668,619 | | | | | $ | 153 | | | | | $ | — | | | | | $ | 1,128,792 | | |
Ending balance – acquired with deteriorated credit quality | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 2,641 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 2,641 | | |
Ending balance | | | | $ | 42,288 | | | | | $ | 394,963 | | | | | $ | 33,026 | | | | | $ | 2,804 | | | | | $ | 670,341 | | | | | $ | 153 | | | | | $ | — | | | | | $ | 1,143,575 | | |
(Dollars in thousands) June 30, 2019 | | | Unpaid Total Principal Balance | | | Recorded Investment With No Allowance | | | Recorded Investment With Allowance | | | Total Recorded Investment | | | Related Allowance | | | Average Recorded Investment | | ||||||||||||||||||
Construction and development | | | | $ | 1,360 | | | | | $ | 1,360 | | | | | $ | — | | | | | $ | 1,360 | | | | | $ | — | | | | | $ | 1,360 | | |
Commercial real estate | | | | | 7,968 | | | | | | 5,716 | | | | | | 2,776 | | | | | | 8,492 | | | | | | 853 | | | | | | 8,054 | | |
Commercial and industrial | | | | | 952 | | | | | | 289 | | | | | | 666 | | | | | | 955 | | | | | | 91 | | | | | | 962 | | |
Residential real estate | | | | | 7,661 | | | | | | 7,661 | | | | | | — | | | | | | 7,661 | | | | | | — | | | | | | 5,028 | | |
Total | | | | $ | 17,941 | | | | | $ | 15,026 | | | | | $ | 3,442 | | | | | $ | 18,468 | | | | | $ | 944 | | | | | $ | 15,404 | | |
|
(Dollars in thousands) December 31, 2018 | | | Unpaid Total Principal Balance | | | Recorded Investment With No Allowance | | | Recorded Investment With Allowance | | | Total Recorded Investment | | | Related Allowance | | | Average Recorded Investment | | ||||||||||||||||||
Construction and development | | | | $ | 1,360 | | | | | $ | — | | | | | $ | 1,360 | | | | | $ | 1,360 | | | | | $ | 117 | | | | | $ | 1,922 | | |
Commercial real estate | | | | | 8,144 | | | | | | 5,312 | | | | | | 2,967 | | | | | | 8,279 | | | | | | 872 | | | | | | 7,474 | | |
Commercial and industrial | | | | | 986 | | | | | | 302 | | | | | | 684 | | | | | | 986 | | | | | | 110 | | | | | | 1,165 | | |
Residential real estate | | | | | 1,722 | | | | | | 1,722 | | | | | | — | | | | | | 1,722 | | | | | | — | | | | | | 1,705 | | |
Total | | | | $ | 12,212 | | | | | $ | 7,336 | | | | | $ | 5,011 | | | | | $ | 12,347 | | | | | $ | 1,099 | | | | | $ | 12,266 | | |
|
(Dollars in thousands) June 30, 2019 | | | Current | | | 30 – 89 Days | | | Accruing Greater than 90 Days | | | Total Accruing Past Due | | | Non-accrual | | | Total Financing Receivables | | ||||||||||||||||||
Construction and Development | | | | $ | 35,158 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1,360 | | | | | $ | 36,518 | | |
Commercial Real Estate | | | | | 411,356 | | | | | | 3,285 | | | | | | — | | | | | | 3,285 | | | | | | 3,946 | | | | | | 418,587 | | |
Commercial and Industrial | | | | | 42,951 | | | | | | 21 | | | | | | — | | | | | | 21 | | | | | | 666 | | | | | | 43,638 | | |
Consumer | | | | | 1,936 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,936 | | |
Residential Real Estate | | | | | 675,867 | | | | | | 3,861 | | | | | | — | | | | | | 3,861 | | | | | | 7,661 | | | | | | 687,389 | | |
Other | | | | | 351 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 351 | | |
Total | | | | $ | 1,167,619 | | | | | $ | 7,167 | | | | | $ | — | | | | | $ | 7,167 | | | | | $ | 13,633 | | | | | $ | 1,188,419 | | |
|
(Dollars in thousands) December 31, 2018 | | | Current | | | 30 – 89 Days | | | Accruing Greater than 90 Days | | | Total Accruing Past Due | | | Non-accrual | | | Total Financing Receivables | | ||||||||||||||||||
Construction and Development | | | | $ | 42,288 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 42,288 | | |
Commercial Real Estate | | | | | 390,601 | | | | | | 1,102 | | | | | | — | | | | | | 1,102 | | | | | | 3,260 | | | | | | 394,963 | | |
Commercial and Industrial | | | | | 32,315 | | | | | | 26 | | | | | | — | | | | | | 26 | | | | | | 685 | | | | | | 33,026 | | |
Consumer | | | | | 2,804 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,804 | | |
Residential Real Estate | | | | | 651,439 | | | | | | 17,180 | | | | | | — | | | | | | 17,180 | | | | | | 1,722 | | | | | | 670,341 | | |
Other | | | | | 153 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 153 | | |
Total | | | | $ | 1,119,600 | | | | | $ | 18,308 | | | | | $ | — | | | | | $ | 18,308 | | | | | $ | 5,667 | | | | | $ | 1,143,575 | | |
(Dollars in thousands) June 30, 2019 | | | Construction and Development | | | Commercial Real Estate | | | Commercial and Industrial | | | Consumer | | | Residential Real Estate | | | Other | | | Total | | |||||||||||||||||||||
Rating: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | | | $ | 35,158 | | | | | $ | 412,023 | | | | | $ | 42,686 | | | | | $ | 1,936 | | | | | $ | 678,531 | | | | | $ | 351 | | | | | $ | 1,170,685 | | |
Special Mention | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Substandard | | | | | 1,360 | | | | | | 6,564 | | | | | | 952 | | | | | | — | | | | | | 8,858 | | | | | | — | | | | | | 17,734 | | |
Doubtful | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 36,518 | | | | | $ | 418,587 | | | | | $ | 43,638 | | | | | $ | 1,936 | | | | | $ | 687,389 | | | | | $ | 351 | | | | | $ | 1,188,419 | | |
|
(Dollars in thousands) December 31, 2018 | | | Construction and Development | | | Commercial Real Estate | | | Commercial and Industrial | | | Consumer | | | Residential Real Estate | | | Other | | | Total | | |||||||||||||||||||||
Rating: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | | | $ | 40,928 | | | | | $ | 383,857 | | | | | $ | 32,040 | | | | | $ | 2,804 | | | | | $ | 667,249 | | | | | $ | 153 | | | | | $ | 1,127,031 | | |
Special Mention | | | | | — | | | | | | 5,112 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,112 | | |
Substandard | | | | | 1,360 | | | | | | 5,994 | | | | | | 986 | | | | | | — | | | | | | 3,092 | | | | | | — | | | | | | 11,432 | | |
Doubtful | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 42,288 | | | | | $ | 394,963 | | | | | $ | 33,026 | | | | | $ | 2,804 | | | | | $ | 670,341 | | | | | $ | 153 | | | | | $ | 1,143,575 | | |
(Dollars in thousands) June 30, 2019 | | | Accruing | | | Nonaccrual | | | Total | | |||||||||
Commercial real estate | | | | $ | 3,130 | | | | | $ | 777 | | | | | $ | 3,907 | | |
Commercial and industrial | | | | | — | | | | | | 9 | | | | | | 9 | | |
Total | | | | $ | 3,130 | | | | | $ | 786 | | | | | $ | 3,916 | | |
|
(Dollars in thousands) December 31, 2018 | | | Accruing | | | Nonaccrual | | | Total | | |||||||||
Commercial real estate | | | | $ | 3,298 | | | | | $ | — | | | | | $ | 3,298 | | |
Commercial and industrial | | | | | — | | | | | | 13 | | | | | | 13 | | |
Total | | | | $ | 3,298 | | | | | $ | 13 | | | | | $ | 3,311 | | |
(Dollars in thousands) Type of Concession | | | June 30, 2019 | | | December 31, 2018 | | ||||||
Deferral of payments | | | | $ | 648 | | | | | $ | — | | |
Extension of maturity date | | | | | 3,268 | | | | | | 3,311 | | |
Total TDR loans | | | | $ | 3,916 | | | | | $ | 3,311 | | |
(Dollars in thousands) Type | | | June 30, 2019 | | | December 31, 2018 | | ||||||||||||||||||
| Number of Loans | | | Recorded Investment | | | Number of Loans | | | Recorded Investment | | ||||||||||||||
Commercial real estate | | | | | 7 | | | | | $ | 4,408 | | | | | | 6 | | | | | $ | 3,527 | | |
Commercial and industrial | | | | | 1 | | | | | | 9 | | | | | | 1 | | | | | | 116 | | |
Total | | | | | 8 | | | | | $ | 4,417 | | | | | | 7 | | | | | $ | 3,643 | | |
(Dollars in thousands) | | | June 30, 2019 | | | December 31, 2018 | | | June 30, 2018 | | |||||||||
Beginning of period | | | | $ | 8,419 | | | | | $ | 9,329 | | | | | $ | 9,329 | | |
Additions | | | | | 579 | | | | | | 350 | | | | | | 178 | | |
Disposals | | | | | (355) | | | | | | (1,260) | | | | | | (224) | | |
End of period, fair value | | | | $ | 8,643 | | | | | $ | 8,419 | | | | | | 9,283 | | |
(Dollars in thousands) | | | June 30, 2019 | | | December 31, 2018 | | | June 30, 2018 | | |||||||||
Beginning of period | | | | $ | 14,934 | | | | | $ | 6,843 | | | | | $ | 6,843 | | |
Additions | | | | | 3,512 | | | | | | 10,253 | | | | | | 5,235 | | |
Amortization expense | | | | | (1,675) | | | | | | (2,162) | | | | | | (841) | | |
End of period, carrying value | | | | $ | 16,771 | | | | | $ | 14,934 | | | | | $ | 11,237 | | |
(Dollars in thousands) | | | |||||
Operating lease cost | | | | $ | 1,036 | | |
Variable lease cost | | | | | 88 | | |
Short-term lease cost | | | | | — | | |
Sublease income | | | | | — | | |
Total net lease cost | | | | $ | 1,124 | | |
(Dollars in thousands) Twelve Months Ended June 30, | | | Lease Liability | | |||
2020 | | | | $ | 2,001 | | |
2021 | | | | | 1,964 | | |
2022 | | | | | 1,866 | | |
2023 | | | | | 1,921 | | |
2024 | | | | | 1,831 | | |
After June 30, 2024 | | | | | 5,405 | | |
Total lease payments | | | | | 14,988 | | |
Less: interest discount | | | | | (1,735) | | |
Present value of lease liabilities | | | | $ | 13,253 | | |
|
(Dollars in thousands) Supplemental Lease Information | | | June 30, 2019 | | |||
Weighted-average remaining lease term (years) | | | | | 7.8 | | |
Weighted-average discount rate | | | | | 3.14% | | |
Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | |
Operating cash flows from operating leases (cash payments) | | | | $ | 967 | | |
Operating cash flows from operating leases (lease liability reduction) | | | | $ | 761 | | |
Operating lease right-of-use assets obtained in exchange for leases entered into during the period | | | | $ | 13,610 | | |
(Dollars in thousands) | | | June 30, 2019 | | | December 31, 2018 | | ||||||
Financial instruments whose contract amounts represent credit risk: | | | | | | | | | | | | | |
Commitments to extend credit | | | | $ | 63,693 | | | | | $ | 65,283 | | |
Standby letters of credit | | | | $ | 4,509 | | | | | $ | 4,250 | | |
| | | June 30, 2019 | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | | Total Gains (Losses) | | |||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Recurring fair value measurements: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Securities available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Obligations of U.S. Government entities and agencies | | | | $ | 14,280 | | | | | $ | — | | | | | $ | — | | | | | $ | 14,280 | | | | | | | | |
States and political subdivisions | | | | | 1,269 | | | | | | — | | | | | | 1,269 | | | | | | — | | | | | | | | |
Mortgage-backed GSE residential | | | | | 2,297 | | | | | | — | | | | | | 2,297 | | | | | | — | | | | | | | | |
Total securities available for sale | | | | | 17,846 | | | | | | — | | | | | | 3,566 | | | | | | 14,280 | | | | | | | | |
SBA servicing asset | | | | | 8,643 | | | | | | — | | | | | | — | | | | | | 8,643 | | | | | | | | |
Interest only strip | | | | | 39 | | | | | | — | | | | | | — | | | | | | 39 | | | | | | | | |
| | | | $ | 26,528 | | | | | $ | — | | | | | $ | 3,566 | | | | | $ | 22,962 | | | | | | | | |
Non-recurring fair value measurements: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired loans | | | | $ | 3,456 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,456 | | | | | $ | 139 | | |
|
| | | December 31, 2018 | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | | Total Gains (Losses) | | |||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Recurring fair value measurements: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Securities available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Obligations of U.S. Government entities and agencies | | | | $ | 15,183 | | | | | $ | — | | | | | $ | — | | | | | $ | 15,183 | | | | | | | | |
States and political subdivisions | | | | | 1,213 | | | | | | — | | | | | | 1,213 | | | | | | — | | | | | | | | |
Mortgage-backed GSE residential | | | | | 2,492 | | | | | | — | | | | | | 2,492 | | | | | | — | | | | | | | | |
Total securities available for sale | | | | | 18,888 | | | | | | — | | | | | | 3,705 | | | | | | 15,183 | | | | | | | | |
SBA servicing asset | | | | | 8,419 | | | | | | — | | | | | | — | | | | | | 8,419 | | | | | | | | |
Interest only strip | | | | | 27 | | | | | | — | | | | | | — | | | | | | 27 | | | | | | | | |
| | | | $ | 27,334 | | | | | $ | — | | | | | $ | 3,705 | | | | | $ | 23,629 | | | | | | | | |
Non-recurring fair value measurements: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired loans | | | | $ | 3,472 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,472 | | | | | $ | 169 | | |
(Dollars in thousands) | | | Obligations of U.S. Government Entities and Agencies | | | SBA Servicing Asset | | | Interest Only Strip | | | Liabilities | | ||||||||||||
Fair value, January 1, 2019 | | | | $ | 15,183 | | | | | $ | 8,419 | | | | | $ | 27 | | | | | $ | — | | |
Total gain included in income | | | | | — | | | | | | 230 | | | | | | 12 | | | | | | — | | |
Settlements | | | | | — | | | | | | 349 | | | | | | — | | | | | | — | | |
Prepayments/paydowns | | | | | (903) | | | | | | (355) | | | | | | — | | | | | | — | | |
Transfers in and/or out of level 3 | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Fair value, June 30, 2019 | | | | $ | 14,280 | | | | | $ | 8,643 | | | | | $ | 39 | | | | | $ | — | | |
(Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | |
Fair value, January 1, 2018 | | | | $ | 16,661 | | | | | $ | 9,329 | | | | | $ | 36 | | | | | $ | — | | |
Total loss included in income | | | | | — | | | | | | (33) | | | | | | (5) | | | | | | — | | |
Settlements | | | | | — | | | | | | 211 | | | | | | — | | | | | | — | | |
Prepayments/paydowns | | | | | (206) | | | | | | (224) | | | | | | — | | | | | | — | | |
Transfers in and/or out of level 3 | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Fair value, June 30, 2018 | | | | $ | 16,455 | | | | | $ | 9,283 | | | | | $ | 31 | | | | | $ | — | | |
(Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | |
Fair value, January 1, 2018 | | | | $ | 16,661 | | | | | $ | 9,329 | | | | | $ | 36 | | | | | $ | — | | |
Total loss included in income | | | | | — | | | | | | 891 | | | | | | (9) | | | | | | — | | |
Settlements | | | | | — | | | | | | (350) | | | | | | — | | | | | | — | | |
Prepayments/paydowns | | | | | (1,478) | | | | | | (1,451) | | | | | | — | | | | | | — | | |
Transfers in and/or out of level 3 | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Fair value, December 31, 2018 | | | | $ | 15,183 | | | | | $ | 8,419 | | | | | $ | 27 | | | | | $ | — | | |
| | | | Valuation Technique | | | Unobservable Input | | | General Range | |
| June 30, 2019 | | | | | | | | | | |
| Obligations of U.S. Government entities and agencies | | | Discounted Cash Flows | | | Discount Rate | | | 0% – 3% | |
| SBA servicing asset and interest only strip | | | Discounted Cash Flows | | | Prepayment speed | | | 8.74% – 14.60% | |
| | | | | | | Discount rate | | | 5.99% – 12.28% | |
| December 31, 2018 | | | | | | | | | | |
| Obligations of U.S. Government entities and agencies | | | Discounted Cash Flows | | | Discount Rate | | | 0% – 3% | |
| SBA servicing asset and interest only strip | | | Discounted Cash Flows | | | Prepayment speed | | | 6.82% – 12.87% | |
| | | | | | | Discount rate | | | 8.78% – 14.56% | |
| | | Carrying Amount | | | Estimated Fair Value at June 30, 2019 | | ||||||||||||||||||||||||
(Dollars in thousands) | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | ||||||||||||||||||
Financial Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash, due from banks, and federal funds sold | | | | $ | 157,083 | | | | | $ | — | | | | | $ | 157,083 | | | | | $ | — | | | | | $ | 157,083 | | |
Securities purchased under agreements to resell | | | | | 15,000 | | | | | | — | | | | | | 15,000 | | | | | | — | | | | | | 15,000 | | |
Investment securities | | | | | 17,846 | | | | | | — | | | | | | 3,566 | | | | | | 14,280 | | | | | | 17,846 | | |
FHLB stock | | | | | 1,292 | | | | | | — | | | | | | — | | | | | | — | | | | | | N/A | | |
Loans, net | | | | | 1,181,936 | | | | | | — | | | | | | — | | | | | | 1,208,175 | | | | | | 1,208,175 | | |
Loans held for sale | | | | | 69,686 | | | | | | — | | | | | | 69,686 | | | | | | — | | | | | | 69,686 | | |
Accrued interest receivable | | | | | 5,290 | | | | | | — | | | | | | — | | | | | | 5,290 | | | | | | 5,290 | | |
SBA servicing assets | | | | | 8,643 | | | | | | — | | | | | | — | | | | | | 8,643 | | | | | | 8,643 | | |
Mortgage servicing assets | | | | | 16,771 | | | | | | — | | | | | | — | | | | | | 17,019 | | | | | | 17,019 | | |
Interest only strips | | | | | 39 | | | | | | — | | | | | | — | | | | | | 39 | | | | | | 39 | | |
Financial Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | | 1,296,187 | | | | | | — | | | | | | 1,297,483 | | | | | | — | | | | | | 1,297,483 | | |
Other borrowings | | | | | 3,585 | | | | | | — | | | | | | 3,585 | | | | | | — | | | | | | 3,585 | | |
Accrued interest payable | | | | | 1,415 | | | | | | — | | | | | | 1,415 | | | | | | — | | | | | | 1,415 | | |
| | | Carrying Amount | | | Estimated Fair Value at December 31, 2018 | | ||||||||||||||||||||||||
(Dollars in thousands) | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | ||||||||||||||||||
Financial Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash, due from banks, and federal funds sold | | | | $ | 138,427 | | | | | $ | — | | | | | $ | 138,427 | | | | | $ | — | | | | | $ | 138,427 | | |
Securities purchased under agreements to resell | | | | | 15,000 | | | | | | — | | | | | | 15,000 | | | | | | — | | | | | | 15,000 | | |
Investment securities | | | | | 18,888 | | | | | | — | | | | | | 3,705 | | | | | | 15,183 | | | | | | 18,888 | | |
FHLB stock | | | | | 1,163 | | | | | | — | | | | | | — | | | | | | — | | | | | | N/A | | |
Loans, net | | | | | 1,136,930 | | | | | | — | | | | | | — | | | | | | 1,166,945 | | | | | | 1,166,945 | | |
Loans held for sale | | | | | 56,865 | | | | | | — | | | | | | 56,865 | | | | | | — | | | | | | 56,865 | | |
Accrued interest receivable | | | | | 4,957 | | | | | | — | | | | | | — | | | | | | 4,957 | | | | | | 4,957 | | |
SBA servicing asset | | | | | 8,419 | | | | | | — | | | | | | — | | | | | | 8,419 | | | | | | 8,419 | | |
Mortgage servicing assets | | | | | 14,934 | | | | | | | | | | | | | | | | | | 16,460 | | | | | | 16,460 | | |
Interest only strips | | | | | 27 | | | | | | — | | | | | | — | | | | | | 27 | | | | | | 27 | | |
Financial Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | | 1,244,232 | | | | | | — | | | | | | 1,242,863 | | | | | | — | | | | | | 1,242,863 | | |
Other borrowings | | | | | 4,257 | | | | | | — | | | | | | 4,257 | | | | | | — | | | | | | 4,257 | | |
Accrued interest payable | | | | | 1,251 | | | | | | — | | | | | | 1,251 | | | | | | — | | | | | | 1,251 | | |
| | | Actual | | | For Capital Adequacy Purposes: | | | To Be Well Capitalized Under Prompt Corrective Action Provisions: | | |||||||||||||||||||||||||||
| | | Amount | | | Ratio | | | Amount ≥ | | | Ratio ≥ | | | Amount ≥ | | | Ratio ≥ | | ||||||||||||||||||
As of June 30, 2019: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Capital (to Risk Weighted Assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | $ | 182,130 | | | | | | 18.66% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 180,150 | | | | | | 18.47% | | | | | | 78,009 | | | | | | 8.0% | | | | | | 97,512 | | | | | | 10.0% | | |
Tier I Capital (to Risk Weighted Assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 175,647 | | | | | | 17.99% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 173,667 | | | | | | 17.81% | | | | | | 58,507 | | | | | | 6.0% | | | | | | 78,009 | | | | | | 8.0% | | |
Common Tier 1 (CET1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 175,647 | | | | | | 17.99% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 173,667 | | | | | | 17.81% | | | | | | 43,880 | | | | | | 4.5% | | | | | | 63,383 | | | | | | 6.5% | | |
Tier 1 Capital (to Average Assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 175,647 | | | | | | 11.67% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 173,667 | | | | | | 11.54% | | | | | | 60,178 | | | | | | 4.0% | | | | | | 75,222 | | | | | | 5.0% | | |
As of December 31, 2018: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Capital (to Risk Weighted Assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | $ | 166,851 | | | | | | 18.16% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 163,339 | | | | | | 17.80% | | | | | | 73,392 | | | | | | 8.0% | | | | | | 91,740 | | | | | | 10.0% | | |
Tier I Capital (to Risk Weighted Assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 160,207 | | | | | | 17.44% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 156,696 | | | | | | 17.08% | | | | | | 55,044 | | | | | | 6.0% | | | | | | 73,392 | | | | | | 8.0% | | |
Common Tier 1 (CET1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 160,207 | | | | | | 17.44% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 156,696 | | | | | | 17.08% | | | | | | 41,283 | | | | | | 4.5% | | | | | | 59,631 | | | | | | 6.5% | | |
Tier 1 Capital (to Average Assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 160,207 | | | | | | 11.14% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 156,696 | | | | | | 10.91% | | | | | | 57,455 | | | | | | 4.0% | | | | | | 71,819 | | | | | | 5.0% | | |
| | | June 30, 2019 | | |||||||||
| | | Shares | | | Weighted Average Exercise Price | | ||||||
Outstanding at January 1, 2019 | | | | | 240,000 | | | | | $ | 12.70 | | |
Granted | | | | | — | | | | | | — | | |
Exercised | | | | | — | | | | | | — | | |
Forfeited | | | | | — | | | | | | — | | |
Outstanding at June 30, 2019 | | | | | 240,000 | | | | | $ | 12.70 | | |
| | | June 30, 2019 | | |||||||||
Nonvested Shares | | | Shares | | | Weighted- Average Grant-Date Fair Value | | ||||||
Nonvested at January 1, 2019 | | | | | 278,202 | | | | | $ | 7.07 | | |
Granted | | | | | 48,724 | | | | | | 13.75 | | |
Vested | | | | | (157,316) | | | | | | 6.68 | | |
Forfeited | | | | | (406) | | | | | | 9.85 | | |
Nonvested at June 30, 2019 | | | | | 169,204 | | | | | $ | 9.35 | | |
| | | Six Months Ended June 30, | | |||||||||
(Dollars in thousands except per share data) | | | 2019 | | | 2018 | | ||||||
Basic | | | | | | | | | | | | | |
Net Income | | | | $ | 21,692 | | | | | $ | 21,745 | | |
Weighted average common shares outstanding | | | | | 24,237,168 | | | | | | 24,102,450 | | |
Basic earnings per common share | | | | $ | 0.90 | | | | | $ | 0.90 | | |
Diluted | | | | | | | | | | | | | |
Net Income | | | | | 21,692 | | | | | | 21,745 | | |
Weighted average common shares outstanding for basic earnings per common share | | | | | 24,237,168 | | | | | | 24,102,450 | | |
Add: Dilutive effects of restricted stock and options | | | | | 190,474 | | | | | | 295,058 | | |
Average shares and dilutive potential common shares | | | | | 24,427,642 | | | | | | 24,397,508 | | |
Diluted earnings per common share | | | | $ | 0.89 | | | | | $ | 0.89 | | |
| | | 2018 | | | 2017 | | ||||||
ASSETS | | | | | | | | | | | | | |
Cash and due from banks | | | | $ | 130,263 | | | | | $ | 94,371 | | |
Federal funds sold | | | | | 8,164 | | | | | | 1,462 | | |
Cash and cash equivalents | | | | | 138,427 | | | | | | 95,833 | | |
Securities purchased under agreements to resell | | | | | 15,000 | | | | | | 15,000 | | |
Securities available for sale (at fair value) | | | | | 18,888 | | | | | | 21,051 | | |
Loans, less allowance for loan losses of $6,645 and $6,925, respectively | | | | | 1,136,930 | | | | | | 1,060,048 | | |
Loans held for sale | | | | | 56,865 | | | | | | 31,802 | | |
Accrued interest receivable | | | | | 4,957 | | | | | | 4,756 | | |
Federal Home Loan Bank stock | | | | | 1,163 | | | | | | 6,092 | | |
Premises and equipment, net | | | | | 14,391 | | | | | | 12,384 | | |
SBA servicing asset, net | | | | | 8,446 | | | | | | 9,366 | | |
Mortgage servicing asset, net | | | | | 14,934 | | | | | | 6,843 | | |
Bank owned life insurance | | | | | 19,749 | | | | | | 19,271 | | |
Other assets | | | | | 2,900 | | | | | | 6,521 | | |
Total assets | | | | $ | 1,432,650 | | | | | $ | 1,288,967 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | |
Non-interest-bearing demand | | | | $ | 299,182 | | | | | $ | 260,251 | | |
Interest-bearing | | | | | 945,050 | | | | | | 759,733 | | |
Total deposits | | | | | 1,244,232 | | | | | | 1,019,984 | | |
Federal Home Loan Bank advances | | | | | — | | | | | | 120,000 | | |
Other borrowings | | | | | 4,257 | | | | | | 5,039 | | |
Accrued interest payable | | | | | 1,251 | | | | | | 401 | | |
Other liabilities | | | | | 14,302 | | | | | | 8,428 | | |
Total liabilities | | | | | 1,264,042 | | | | | | 1,153,852 | | |
Shareholders’ equity: | | | | | | | | | | | | | |
Common stock, $0.01 par value, 40,000,000 shares authorized, 24,258,062 and 24,074,882 shares issued and outstanding | | | | | 242 | | | | | | 240 | | |
Additional paid-in capital | | | | | 39,915 | | | | | | 38,418 | | |
Retained earnings | | | | | 128,555 | | | | | | 96,525 | | |
Accumulated other comprehensive loss | | | | | (104) | | | | | | (68) | | |
Total shareholders’ equity | | | | | 168,608 | | | | | | 135,115 | | |
Total liabilities and shareholders’ equity | | | | $ | 1,432,650 | | | | | $ | 1,288,967 | | |
|
| | | 2018 | | | 2017 | | ||||||
Interest and dividend income: | | | | | | | | | | | | | |
Loans, including fees | | | | $ | 70,246 | | | | | $ | 59,110 | | |
Other investment income | | | | | 2,169 | | | | | | 1,190 | | |
Federal funds sold | | | | | 464 | | | | | | 214 | | |
Total interest income | | | | | 72,879 | | | | | | 60,514 | | |
Interest expense: | | | | | | | | | | | | | |
Deposits | | | | | 14,011 | | | | | | 7,729 | | |
FHLB advances and other borrowings | | | | | 664 | | | | | | 890 | | |
Total interest expense | | | | | 14,675 | | | | | | 8,619 | | |
Net interest income | | | | | 58,204 | | | | | | 51,895 | | |
Provision for loan losses | | | | | 1,237 | | | | | | 3,058 | | |
Net interest income after provision for loan losses | | | | | 56,967 | | | | | | 48,837 | | |
Noninterest income: | | | | | | | | | | | | | |
Service charges on deposit accounts | | | | | 1,036 | | | | | | 1,274 | | |
Other service charges, commissions and fees | | | | | 10,395 | | | | | | 8,237 | | |
Gain on sale of residential mortgage loans | | | | | 5,679 | | | | | | 3,035 | | |
Mortgage servicing income, net | | | | | 11,994 | | | | | | 8,168 | | |
SBA servicing income, net | | | | | 3,119 | | | | | | 4,527 | | |
Gain on sale of SBA loans | | | | | 4,616 | | | | | | 6,347 | | |
Other income | | | | | 770 | | | | | | 817 | | |
Total noninterest income | | | | | 37,609 | | | | | | 32,405 | | |
Noninterest expense: | | | | | | | | | | | | | |
Salaries and employee benefits | | | | | 23,569 | | | | | | 17,956 | | |
Occupancy | | | | | 4,086 | | | | | | 2,968 | | |
Data processing | | | | | 842 | | | | | | 801 | | |
Advertising | | | | | 613 | | | | | | 634 | | |
Federal deposit insurance | | | | | 395 | | | | | | 403 | | |
Other operating | | | | | 9,070 | | | | | | 8,430 | | |
Total noninterest expense | | | | | 38,575 | | | | | | 31,192 | | |
Income before provision for income taxes | | | | | 56,001 | | | | | | 50,050 | | |
Provision for income taxes | | | | | 14,667 | | | | | | 18,153 | | |
Net income available to common shareholders | | | | $ | 41,334 | | | | | $ | 31,897 | | |
Earnings per share: | | | | | | | | | | | | | |
Basic | | | | $ | 1.71 | | | | | $ | 1.34 | | |
Diluted | | | | $ | 1.69 | | | | | $ | 1.32 | | |
Cash dividend declared per common share | | | | $ | 0.38 | | | | | $ | 0.20 | | |
| | | 2018 | | | 2017 | | ||||||
Net income | | | | $ | 41,334 | | | | | $ | 31,897 | | |
Other comprehensive income (loss): | | | | | | | | | | | | | |
Unrealized holding (losses) on securities available for sale arising during the period | | | | | (46) | | | | | | (10) | | |
Tax effect | | | | | (3) | | | | | | 3 | | |
Other comprehensive loss | | | | | (49) | | | | | | (7) | | |
Comprehensive income | | | | $ | 41,285 | | | | | $ | 31,890 | | |
| | | Common Stock(1) | | | Additional Paid-in Capital(1) | | | Retained Earnings | | | Accumulated Other Comprehensive Income (Loss) | | | Total | | |||||||||||||||||||||
| Number of Shares | | | Amount | | ||||||||||||||||||||||||||||||||
Balance, January 1, 2017 | | | | | 23,642,510 | | | | | $ | 236 | | | | | $ | 37,019 | | | | | $ | 70,067 | | | | | $ | (61) | | | | | $ | 107,261 | | |
Stock based compensation expense | | | | | — | | | | | | — | | | | | | 718 | | | | | | — | | | | | | — | | | | | | 718 | | |
Vesting of restricted stock | | | | | 172,372 | | | | | | 2 | | | | | | (2) | | | | | | — | | | | | | — | | | | | | — | | |
Stock option exercise | | | | | 260,000 | | | | | | 2 | | | | | | 683 | | | | | | — | | | | | | — | | | | | | 685 | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 31,897 | | | | | | — | | | | | | 31,897 | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (7) | | | | | | (7) | | |
Dividends on common stock | | | | | — | | | | | | — | | | | | | — | | | | | | (5,439) | | | | | | — | | | | | | (5,439) | | |
Balance, December 31, 2017 | | | | | 24,074,882 | | | | | | 240 | | | | | | 38,418 | | | | | | 96,525 | | | | | | (68) | | | | | | 135,115 | | |
Stock based compensation expense | | | | | — | | | | | | — | | | | | | 1,499 | | | | | | — | | | | | | — | | | | | | 1,499 | | |
Vesting of restricted stock | | | | | 183,180 | | | | | | 2 | | | | | | (2) | | | | | | — | | | | | | — | | | | | | — | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 41,334 | | | | | | — | | | | | | 41,334 | | |
Impact of adoption of new accounting standard(2) | | | | | — | | | | | | — | | | | | | — | | | | | | (13) | | | | | | 13 | | | | | | — | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (49) | | | | | | (49) | | |
Dividends on common stock | | | | | — | | | | | | — | | | | | | — | | | | | | (9,291) | | | | | | — | | | | | | (9,291) | | |
Balance, December 31, 2018 | | | | | 24,258,062 | | | | | $ | 242 | | | | | $ | 39,915 | | | | | $ | 128,555 | | | | | $ | (104) | | | | | $ | 168,608 | | |
| | | 2018 | | | 2017 | | ||||||
Cash flow from operating activities: | | | | | | | | | | | | | |
Net income | | | | $ | 41,334 | | | | | $ | 31,897 | | |
Adjustments to reconcile net income to net cash (used) provided by operating activities: | | | | | | | | | | | | | |
Depreciation, amortization and accretion | | | | | 899 | | | | | | 593 | | |
Provision for loan losses | | | | | 1,237 | | | | | | 3,058 | | |
Stock based compensation expense | | | | | 1,499 | | | | | | 718 | | |
Write-down of abandoned leasehold improvements | | | | | — | | | | | | 289 | | |
Gain on sale of foreclosed real estate | | | | | 36 | | | | | | 8 | | |
Deferred income tax expense | | | | | 355 | | | | | | 42 | | |
Origination of residential real estate loans held for sale | | | | | (716,140) | | | | | | (235,119) | | |
Proceeds from sale of residential real estate loans | | | | | 541,690 | | | | | | 365,044 | | |
Gain on sale of residential mortgages | | | | | (5,679) | | | | | | (3,035) | | |
Origination of SBA loans held for sale | | | | | (121,009) | | | | | | (85,932) | | |
Proceeds from sales of SBA loans held for sale | | | | | 97,957 | | | | | | 92,278 | | |
Gain on sale of SBA loans | | | | | (4,616) | | | | | | (6,347) | | |
Increase in cash surrender value of bank owned life insurance | | | | | (478) | | | | | | (510) | | |
Increase in accrued interest receivable | | | | | (201) | | | | | | (988) | | |
Decrease (increase) in SBA servicing rights | | | | | 920 | | | | | | (512) | | |
Increase in mortgage servicing rights | | | | | (8,091) | | | | | | (6,843) | | |
Decrease (increase) in other assets | | | | | 2,644 | | | | | | (3,687) | | |
Increase in accrued interest payable | | | | | 850 | | | | | | 45 | | |
Increase in other liabilities | | | | | 5,874 | | | | | | 813 | | |
Net cash flow (used) provided by operating activities | | | | | (160,919) | | | | | | 151,812 | | |
Cash flow from investing activities: | | | | | | | | | | | | | |
Decrease (increase) in loans, net | | | | | 104,354 | | | | | | (263,086) | | |
Proceeds from sales, calls or paydowns of securities available for sale | | | | | 2,075 | | | | | | 8,040 | | |
Purchase of securities under resell agreements | | | | | — | | | | | | (15,000) | | |
Purchase of securities available for sale | | | | | — | | | | | | (1,250) | | |
Sale (purchase) of Federal Home Loan Bank stock | | | | | 4,929 | | | | | | (867) | | |
Purchases of premises and equipment | | | | | (2,855) | | | | | | (5,912) | | |
Proceeds from sales of foreclosed real estate owned | | | | | 835 | | | | | | 133 | | |
Net cash flow provided (used) by investing activities | | | | | 109,338 | | | | | | (277,942) | | |
Cash flow from financing activities: | | | | | | | | | | | | | |
Dividends paid – common stock | | | | | (9,291) | | | | | | (5,401) | | |
Exercise of stock options | | | | | — | | | | | | 685 | | |
Increase in deposits, net | | | | | 224,248 | | | | | | 149,117 | | |
Decrease in other borrowings, net | | | | | (782) | | | | | | (302) | | |
Repayments of Federal Home Loan Bank advances | | | | | (120,000) | | | | | | (488,700) | | |
Federal Home Loan Bank advances | | | | | — | | | | | | 500,000 | | |
Net cash flow provided by financing activities | | | | | 94,175 | | | | | | 155,399 | | |
Net change in cash and cash equivalents | | | | | 42,594 | | | | | | 29,269 | | |
Cash and cash equivalents at beginning of year | | | | | 95,833 | | | | | | 66,564 | | |
Cash and cash equivalents at end of year | | | | $ | 138,427 | | | | | $ | 95,833 | | |
Supplemental schedule of noncash investing and financing activities: | | | | | | | | | | | | | |
Transfer of loan principal and accrued interest to foreclosed real estate, net of write-downs | | | | $ | 261 | | | | | $ | 387 | | |
Supplemental disclosures of cash flow information – | | | | ||||||||||
Cash paid during the year for: | | | | ||||||||||
Interest | | | | $ | 13,825 | | | | | $ | 8,575 | | |
Income taxes | | | | $ | 10,400 | | | | | $ | 20,087 | | |
| | | June 30, 2019 | | |||||||||||||||||||||
(Dollars in thousands) | | | Gross Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Estimated Fair Value | | ||||||||||||
Obligations of U.S. Government entities and agencies | | | | $ | 14,280 | | | | | $ | — | | | | | $ | — | | | | | $ | 14,280 | | |
States and political subdivisions | | | | | 1,247 | | | | | | 22 | | | | | | — | | | | | | 1,269 | | |
Mortgage-backed GSE residential | | | | | 2,350 | | | | | | — | | | | | | (53) | | | | | | 2,297 | | |
Total | | | | $ | 17,877 | | | | | $ | 22 | | | | | $ | (53) | | | | | $ | 17,846 | | |
| | | December 31, 2018 | | |||||||||||||||||||||
(Dollars in thousands) | | | Gross Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Estimated Fair Value | | ||||||||||||
Obligations of U.S. Government entities and agencies | | | | $ | 15,183 | | | | | $ | — | | | | | $ | — | | | | | $ | 15,183 | | |
States and political subdivisions | | | | | 1,248 | | | | | | — | | | | | | (35) | | | | | | 1,213 | | |
Mortgage-backed GSE residential | | | | | 2,607 | | | | | | — | | | | | | (115) | | | | | | 2,492 | | |
Total | | | | $ | 19,038 | | | | | $ | — | | | | | $ | (150) | | | | | $ | 18,888 | | |
| | | Securities Available for Sale | | |||||||||
(Dollars in thousands) | | | Amortized Cost | | | Estimated Fair Value | | ||||||
Due in one year or less | | | | $ | 608 | | | | | $ | 608 | | |
Due after one year but less than five years | | | | | 2,858 | | | | | | 2,858 | | |
Due after five years but less than ten years | | | | | 4,620 | | | | | | 4,642 | | |
Due in more than ten years | | | | | 7,441 | | | | | | 7,441 | | |
Mortgage-backed GSE residential | | | | | 2,350 | | | | | | 2,297 | | |
Total | | | | $ | 17,877 | | | | | $ | 17,846 | | |
| | | June 30, 2019 | | |||||||||||||||||||||
| | | Twelve Months or Less | | | Over Twelve Months | | ||||||||||||||||||
(Dollars in thousands) | | | Gross Unrealized Losses | | | Estimated Fair Value | | | Gross Unrealized Losses | | | Estimated Fair Value | | ||||||||||||
States and political subdivisions | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Mortgage-backed GSE residential | | | | | — | | | | | | — | | | | | | (53) | | | | | | 2,292 | | |
Total | | | | $ | — | | | | | $ | — | | | | | $ | (53) | | | | | $ | 2,292 | | |
|
| | | December 31, 2018 | | |||||||||||||||||||||
| | | Twelve Months or Less | | | Over Twelve Months | | ||||||||||||||||||
(Dollars in thousands) | | | Gross Unrealized Losses | | | Estimated Fair Value | | | Gross Unrealized Losses | | | Estimated Fair Value | | ||||||||||||
States and political subdivisions | | | | $ | (35) | | | | | $ | 1,213 | | | | | $ | — | | | | | $ | — | | |
Mortgage-backed GSE residential | | | | | — | | | | | | — | | | | | | (115) | | | | | | 2,492 | | |
Total | | | | $ | (35) | | | | | $ | 1,213 | | | | | $ | (115) | | | | | $ | 2,492 | | |
(Dollars in thousands) | | | June 30, 2019 | | | December 31, 2018 | | ||||||
Construction and development | | | | $ | 37,132 | | | | | $ | 42,718 | | |
Commercial real estate | | | | | 420,332 | | | | | | 396,598 | | |
Commercial and industrial | | | | | 43,771 | | | | | | 33,100 | | |
Consumer | | | | | 1,936 | | | | | | 2,804 | | |
Residential real estate | | | | | 687,389 | | | | | | 670,341 | | |
Other | | | | | 351 | | | | | | 153 | | |
Total loans receivable | | | | | 1,190,911 | | | | | | 1,145,714 | | |
Unearned income | | | | | (2,492) | | | | | | (2,139) | | |
Allowance for loan losses | | | | | (6,483) | | | | | | (6,645) | | |
Loans, net | | | | $ | 1,181,936 | | | | | $ | 1,136,930 | | |
(Dollars in thousands) | | | Construction and Development | | | Commercial Real Estate | | | Commercial and Industrial | | | Consumer | | | Residential Real Estate | | | Other | | | Unallocated | | | Total | | ||||||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 235 | | | | | $ | 2,601 | | | | | $ | 380 | | | | | $ | 387 | | | | | $ | 3,042 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,645 | | |
Charge-offs | | | | | — | | | | | | — | | | | | | (14) | | | | | | (331) | | | | | | — | | | | | | — | | | | | | — | | | | | | (345) | | |
Recoveries | | | | | — | | | | | | 11 | | | | | | — | | | | | | 172 | | | | | | — | | | | | | — | | | | | | — | | | | | | 183 | | |
Provision | | | | | (106) | | | | | | (228) | | | | | | 221 | | | | | | (32) | | | | | | 123 | | | | | | 1 | | | | | | 21 | | | | | | — | | |
Ending balance | | | | $ | 129 | | | | | $ | 2,384 | | | | | $ | 587 | | | | | $ | 196 | | | | | $ | 3,165 | | | | | $ | 1 | | | | | $ | 21 | | | | | $ | 6,483 | | |
Ending balance – individually evaluated for impairment | | | | $ | — | | | | | $ | 853 | | | | | $ | 91 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 944 | | |
Ending balance – collectively evaluated for impairment | | | | $ | 129 | | | | | $ | 1,531 | | | | | $ | 496 | | | | | $ | 6 | | | | | $ | 3,165 | | | | | $ | 1 | | | | | $ | 21 | | | | | $ | 5,349 | | |
Ending balance – acquired with deteriorated credit quality | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 190 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 190 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance – individually evaluated for impairment | | | | $ | 1,360 | | | | | $ | 7,968 | | | | | $ | 952 | | | | | $ | — | | | | | $ | 7,661 | | | | | $ | — | | | | | $ | — | | | | | $ | 17,941 | | |
Ending balance – collectively evaluated for impairment | | | | $ | 35,158 | | | | | $ | 410,619 | | | | | $ | 42,686 | | | | | $ | 486 | | | | | $ | 679,728 | | | | | $ | 351 | | | | | $ | — | | | | | $ | 1,169,028 | | |
Ending balance – acquired with deteriorated credit quality | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1,450 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1,450 | | |
Ending balance | | | | $ | 36,518 | | | | | $ | 418,587 | | | | | $ | 43,638 | | | | | $ | 1,936 | | | | | $ | 687,389 | | | | | $ | 351 | | | | | $ | — | | | | | $ | 1,188,419 | | |
(Dollars in thousands) | | | Construction and Development | | | Commercial Real Estate | | | Commercial and Industrial | | | Consumer | | | Residential Real Estate | | | Other | | | Unallocated | | | Total | | ||||||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 127 | | | | | $ | 2,135 | | | | | $ | 261 | | | | | $ | 1,167 | | | | | $ | 3,048 | | | | | $ | 3 | | | | | $ | 184 | | | | | $ | 6,925 | | |
Charge-offs | | | | | — | | | | | | (14) | | | | | | — | | | | | | (1,374) | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,388) | | |
Recoveries | | | | | — | | | | | | 9 | | | | | | 2 | | | | | | 348 | | | | | | — | | | | | | — | | | | | | — | | | | | | 359 | | |
Provision | | | | | 33 | | | | | | 14 | | | | | | — | | | | | | 510 | | | | | | 315 | | | | | | (2) | | | | | | — | | | | | | 870 | | |
Ending balance | | | | $ | 160 | | | | | $ | 2,144 | | | | | $ | 263 | | | | | $ | 651 | | | | | $ | 3,363 | | | | | $ | 1 | | | | | $ | 184 | | | | | $ | 6,766 | | |
Ending balance – individually evaluated for impairment | | | | $ | — | | | | | $ | 703 | | | | | $ | 110 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 813 | | |
Ending balance – collectively evaluated for impairment | | | | $ | 160 | | | | | $ | 1,441 | | | | | $ | 153 | | | | | $ | — | | | | | $ | 3,363 | | | | | $ | 1 | | | | | $ | 184 | | | | | $ | 5,302 | | |
Ending balance – acquired with deteriorated credit quality | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 651 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 651 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance – individually evaluated for impairment | | | | $ | 1,360 | | | | | $ | 6,988 | | | | | $ | 787 | | | | | $ | — | | | | | $ | 2,228 | | | | | $ | — | | | | | $ | — | | | | | $ | 11,363 | | |
Ending balance – collectively evaluated for impairment | | | | $ | 47,576 | | | | | $ | 368,747 | | | | | $ | 43,855 | | | | | $ | 198 | | | | | $ | 617,293 | | | | | $ | 155 | | | | | $ | — | | | | | $ | 1,077,824 | | |
Ending balance – acquired with deteriorated credit quality | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 5,042 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 5,042 | | |
Ending balance | | | | $ | 48,936 | | | | | $ | 375,735 | | | | | $ | 44,642 | | | | | $ | 5,240 | | | | | $ | 619,521 | | | | | $ | 155 | | | | | $ | — | | | | | $ | 1,094,229 | | |
|
(Dollars in thousands) | | | Construction and Development | | | Commercial Real Estate | | | Commercial and Industrial | | | Consumer | | | Residential Real Estate | | | Other | | | Unallocated | | | Total | | ||||||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 127 | | | | | $ | 2,135 | | | | | $ | 261 | | | | | $ | 1,167 | | | | | $ | 3,048 | | | | | $ | 3 | | | | | $ | 184 | | | | | $ | 6,925 | | |
Charge-offs | | | | | — | | | | | | (88) | | | | | | (39) | | | | | | (1,939) | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,066) | | |
Recoveries | | | | | — | | | | | | 22 | | | | | | — | | | | | | 527 | | | | | | — | | | | | | — | | | | | | — | | | | | | 549 | | |
Provision | | | | | 108 | | | | | | 532 | | | | | | 158 | | | | | | 632 | | | | | | (6) | | | | | | (3) | | | | | | (184) | | | | | | 1,237 | | |
Ending balance | | | | $ | 235 | | | | | $ | 2,601 | | | | | $ | 380 | | | | | $ | 387 | | | | | $ | 3,042 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,645 | | |
Ending balance – individually evaluated for impairment | | | | $ | 117 | | | | | $ | 872 | | | | | $ | 110 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1,099 | | |
Ending balance – collectively evaluated for impairment | | | | $ | 118 | | | | | $ | 1,729 | | | | | $ | 270 | | | | | $ | 3 | | | | | $ | 3,042 | | | | | $ | — | | | | | $ | — | | | | | $ | 5,162 | | |
Ending balance – acquired with deteriorated credit quality | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 384 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 384 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance – individually evaluated for impairment | | | | $ | 1,360 | | | | | $ | 8,074 | | | | | $ | 986 | | | | | $ | — | | | | | $ | 1,722 | | | | | $ | — | | | | | $ | — | | | | | $ | 12,142 | | |
Ending balance – collectively evaluated for impairment | | | | $ | 40,928 | | | | | $ | 386,889 | | | | | $ | 32,040 | | | | | $ | 163 | | | | | $ | 668,619 | | | | | $ | 153 | | | | | $ | — | | | | | $ | 1,128,792 | | |
Ending balance – acquired with deteriorated credit quality | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 2,641 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 2,641 | | |
Ending balance | | | | $ | 42,288 | | | | | $ | 394,963 | | | | | $ | 33,026 | | | | | $ | 2,804 | | | | | $ | 670,341 | | | | | $ | 153 | | | | | $ | — | | | | | $ | 1,143,575 | | |
(Dollars in thousands) June 30, 2019 | | | Unpaid Total Principal Balance | | | Recorded Investment With No Allowance | | | Recorded Investment With Allowance | | | Total Recorded Investment | | | Related Allowance | | | Average Recorded Investment | | ||||||||||||||||||
Construction and development | | | | $ | 1,360 | | | | | $ | 1,360 | | | | | $ | — | | | | | $ | 1,360 | | | | | $ | — | | | | | $ | 1,360 | | |
Commercial real estate | | | | | 7,968 | | | | | | 5,716 | | | | | | 2,776 | | | | | | 8,492 | | | | | | 853 | | | | | | 8,054 | | |
Commercial and industrial | | | | | 952 | | | | | | 289 | | | | | | 666 | | | | | | 955 | | | | | | 91 | | | | | | 962 | | |
Residential real estate | | | | | 7,661 | | | | | | 7,661 | | | | | | — | | | | | | 7,661 | | | | | | — | | | | | | 5,028 | | |
Total | | | | $ | 17,941 | | | | | $ | 15,026 | | | | | $ | 3,442 | | | | | $ | 18,468 | | | | | $ | 944 | | | | | $ | 15,404 | | |
|
(Dollars in thousands) December 31, 2018 | | | Unpaid Total Principal Balance | | | Recorded Investment With No Allowance | | | Recorded Investment With Allowance | | | Total Recorded Investment | | | Related Allowance | | | Average Recorded Investment | | ||||||||||||||||||
Construction and development | | | | $ | 1,360 | | | | | $ | — | | | | | $ | 1,360 | | | | | $ | 1,360 | | | | | $ | 117 | | | | | $ | 1,922 | | |
Commercial real estate | | | | | 8,144 | | | | | | 5,312 | | | | | | 2,967 | | | | | | 8,279 | | | | | | 872 | | | | | | 7,474 | | |
Commercial and industrial | | | | | 986 | | | | | | 302 | | | | | | 684 | | | | | | 986 | | | | | | 110 | | | | | | 1,165 | | |
Residential real estate | | | | | 1,722 | | | | | | 1,722 | | | | | | — | | | | | | 1,722 | | | | | | — | | | | | | 1,705 | | |
Total | | | | $ | 12,212 | | | | | $ | 7,336 | | | | | $ | 5,011 | | | | | $ | 12,347 | | | | | $ | 1,099 | | | | | $ | 12,266 | | |
|
(Dollars in thousands) June 30, 2019 | | | Current | | | 30 – 89 Days | | | Accruing Greater than 90 Days | | | Total Accruing Past Due | | | Non-accrual | | | Total Financing Receivables | | ||||||||||||||||||
Construction and Development | | | | $ | 35,158 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1,360 | | | | | $ | 36,518 | | |
Commercial Real Estate | | | | | 411,356 | | | | | | 3,285 | | | | | | — | | | | | | 3,285 | | | | | | 3,946 | | | | | | 418,587 | | |
Commercial and Industrial | | | | | 42,951 | | | | | | 21 | | | | | | — | | | | | | 21 | | | | | | 666 | | | | | | 43,638 | | |
Consumer | | | | | 1,936 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,936 | | |
Residential Real Estate | | | | | 675,867 | | | | | | 3,861 | | | | | | — | | | | | | 3,861 | | | | | | 7,661 | | | | | | 687,389 | | |
Other | | | | | 351 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 351 | | |
Total | | | | $ | 1,167,619 | | | | | $ | 7,167 | | | | | $ | — | | | | | $ | 7,167 | | | | | $ | 13,633 | | | | | $ | 1,188,419 | | |
|
(Dollars in thousands) December 31, 2018 | | | Current | | | 30 – 89 Days | | | Accruing Greater than 90 Days | | | Total Accruing Past Due | | | Non-accrual | | | Total Financing Receivables | | ||||||||||||||||||
Construction and Development | | | | $ | 42,288 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 42,288 | | |
Commercial Real Estate | | | | | 390,601 | | | | | | 1,102 | | | | | | — | | | | | | 1,102 | | | | | | 3,260 | | | | | | 394,963 | | |
Commercial and Industrial | | | | | 32,315 | | | | | | 26 | | | | | | — | | | | | | 26 | | | | | | 685 | | | | | | 33,026 | | |
Consumer | | | | | 2,804 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,804 | | |
Residential Real Estate | | | | | 651,439 | | | | | | 17,180 | | | | | | — | | | | | | 17,180 | | | | | | 1,722 | | | | | | 670,341 | | |
Other | | | | | 153 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 153 | | |
Total | | | | $ | 1,119,600 | | | | | $ | 18,308 | | | | | $ | — | | | | | $ | 18,308 | | | | | $ | 5,667 | | | | | $ | 1,143,575 | | |
(Dollars in thousands) June 30, 2019 | | | Construction and Development | | | Commercial Real Estate | | | Commercial and Industrial | | | Consumer | | | Residential Real Estate | | | Other | | | Total | | |||||||||||||||||||||
Rating: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | | | $ | 35,158 | | | | | $ | 412,023 | | | | | $ | 42,686 | | | | | $ | 1,936 | | | | | $ | 678,531 | | | | | $ | 351 | | | | | $ | 1,170,685 | | |
Special Mention | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Substandard | | | | | 1,360 | | | | | | 6,564 | | | | | | 952 | | | | | | — | | | | | | 8,858 | | | | | | — | | | | | | 17,734 | | |
Doubtful | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 36,518 | | | | | $ | 418,587 | | | | | $ | 43,638 | | | | | $ | 1,936 | | | | | $ | 687,389 | | | | | $ | 351 | | | | | $ | 1,188,419 | | |
|
(Dollars in thousands) December 31, 2018 | | | Construction and Development | | | Commercial Real Estate | | | Commercial and Industrial | | | Consumer | | | Residential Real Estate | | | Other | | | Total | | |||||||||||||||||||||
Rating: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | | | $ | 40,928 | | | | | $ | 383,857 | | | | | $ | 32,040 | | | | | $ | 2,804 | | | | | $ | 667,249 | | | | | $ | 153 | | | | | $ | 1,127,031 | | |
Special Mention | | | | | — | | | | | | 5,112 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,112 | | |
Substandard | | | | | 1,360 | | | | | | 5,994 | | | | | | 986 | | | | | | — | | | | | | 3,092 | | | | | | — | | | | | | 11,432 | | |
Doubtful | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 42,288 | | | | | $ | 394,963 | | | | | $ | 33,026 | | | | | $ | 2,804 | | | | | $ | 670,341 | | | | | $ | 153 | | | | | $ | 1,143,575 | | |
(Dollars in thousands) June 30, 2019 | | | Accruing | | | Nonaccrual | | | Total | | |||||||||
Commercial real estate | | | | $ | 3,130 | | | | | $ | 777 | | | | | $ | 3,907 | | |
Commercial and industrial | | | | | — | | | | | | 9 | | | | | | 9 | | |
Total | | | | $ | 3,130 | | | | | $ | 786 | | | | | $ | 3,916 | | |
|
(Dollars in thousands) December 31, 2018 | | | Accruing | | | Nonaccrual | | | Total | | |||||||||
Commercial real estate | | | | $ | 3,298 | | | | | $ | — | | | | | $ | 3,298 | | |
Commercial and industrial | | | | | — | | | | | | 13 | | | | | | 13 | | |
Total | | | | $ | 3,298 | | | | | $ | 13 | | | | | $ | 3,311 | | |
(Dollars in thousands) Type of Concession | | | June 30, 2019 | | | December 31, 2018 | | ||||||
Deferral of payments | | | | $ | 648 | | | | | $ | — | | |
Extension of maturity date | | | | | 3,268 | | | | | | 3,311 | | |
Total TDR loans | | | | $ | 3,916 | | | | | $ | 3,311 | | |
(Dollars in thousands) Type | | | June 30, 2019 | | | December 31, 2018 | | ||||||||||||||||||
| Number of Loans | | | Recorded Investment | | | Number of Loans | | | Recorded Investment | | ||||||||||||||
Commercial real estate | | | | | 7 | | | | | $ | 4,408 | | | | | | 6 | | | | | $ | 3,527 | | |
Commercial and industrial | | | | | 1 | | | | | | 9 | | | | | | 1 | | | | | | 116 | | |
Total | | | | | 8 | | | | | $ | 4,417 | | | | | | 7 | | | | | $ | 3,643 | | |
(Dollars in thousands) | | | June 30, 2019 | | | December 31, 2018 | | | June 30, 2018 | | |||||||||
Beginning of period | | | | $ | 8,419 | | | | | $ | 9,329 | | | | | $ | 9,329 | | |
Additions | | | | | 579 | | | | | | 350 | | | | | | 178 | | |
Disposals | | | | | (355) | | | | | | (1,260) | | | | | | (224) | | |
End of period, fair value | | | | $ | 8,643 | | | | | $ | 8,419 | | | | | | 9,283 | | |
(Dollars in thousands) | | | June 30, 2019 | | | December 31, 2018 | | | June 30, 2018 | | |||||||||
Beginning of period | | | | $ | 14,934 | | | | | $ | 6,843 | | | | | $ | 6,843 | | |
Additions | | | | | 3,512 | | | | | | 10,253 | | | | | | 5,235 | | |
Amortization expense | | | | | (1,675) | | | | | | (2,162) | | | | | | (841) | | |
End of period, carrying value | | | | $ | 16,771 | | | | | $ | 14,934 | | | | | $ | 11,237 | | |
(Dollars in thousands) | | | |||||
Operating lease cost | | | | $ | 1,036 | | |
Variable lease cost | | | | | 88 | | |
Short-term lease cost | | | | | — | | |
Sublease income | | | | | — | | |
Total net lease cost | | | | $ | 1,124 | | |
(Dollars in thousands) Twelve Months Ended June 30, | | | Lease Liability | | |||
2020 | | | | $ | 2,001 | | |
2021 | | | | | 1,964 | | |
2022 | | | | | 1,866 | | |
2023 | | | | | 1,921 | | |
2024 | | | | | 1,831 | | |
After June 30, 2024 | | | | | 5,405 | | |
Total lease payments | | | | | 14,988 | | |
Less: interest discount | | | | | (1,735) | | |
Present value of lease liabilities | | | | $ | 13,253 | | |
|
(Dollars in thousands) Supplemental Lease Information | | | June 30, 2019 | | |||
Weighted-average remaining lease term (years) | | | | | 7.8 | | |
Weighted-average discount rate | | | | | 3.14% | | |
Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | |
Operating cash flows from operating leases (cash payments) | | | | $ | 967 | | |
Operating cash flows from operating leases (lease liability reduction) | | | | $ | 761 | | |
Operating lease right-of-use assets obtained in exchange for leases entered into during the period | | | | $ | 13,610 | | |
(Dollars in thousands) | | | June 30, 2019 | | | December 31, 2018 | | ||||||
Financial instruments whose contract amounts represent credit risk: | | | | | | | | | | | | | |
Commitments to extend credit | | | | $ | 63,693 | | | | | $ | 65,283 | | |
Standby letters of credit | | | | $ | 4,509 | | | | | $ | 4,250 | | |
| | | June 30, 2019 | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | | Total Gains (Losses) | | |||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Recurring fair value measurements: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Securities available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Obligations of U.S. Government entities and agencies | | | | $ | 14,280 | | | | | $ | — | | | | | $ | — | | | | | $ | 14,280 | | | | | | | | |
States and political subdivisions | | | | | 1,269 | | | | | | — | | | | | | 1,269 | | | | | | — | | | | | | | | |
Mortgage-backed GSE residential | | | | | 2,297 | | | | | | — | | | | | | 2,297 | | | | | | — | | | | | | | | |
Total securities available for sale | | | | | 17,846 | | | | | | — | | | | | | 3,566 | | | | | | 14,280 | | | | | | | | |
SBA servicing asset | | | | | 8,643 | | | | | | — | | | | | | — | | | | | | 8,643 | | | | | | | | |
Interest only strip | | | | | 39 | | | | | | — | | | | | | — | | | | | | 39 | | | | | | | | |
| | | | $ | 26,528 | | | | | $ | — | | | | | $ | 3,566 | | | | | $ | 22,962 | | | | | | | | |
Non-recurring fair value measurements: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired loans | | | | $ | 3,456 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,456 | | | | | $ | 139 | | |
|
| | | December 31, 2018 | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | | Total Gains (Losses) | | |||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Recurring fair value measurements: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Securities available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Obligations of U.S. Government entities and agencies | | | | $ | 15,183 | | | | | $ | — | | | | | $ | — | | | | | $ | 15,183 | | | | | | | | |
States and political subdivisions | | | | | 1,213 | | | | | | — | | | | | | 1,213 | | | | | | — | | | | | | | | |
Mortgage-backed GSE residential | | | | | 2,492 | | | | | | — | | | | | | 2,492 | | | | | | — | | | | | | | | |
Total securities available for sale | | | | | 18,888 | | | | | | — | | | | | | 3,705 | | | | | | 15,183 | | | | | | | | |
SBA servicing asset | | | | | 8,419 | | | | | | — | | | | | | — | | | | | | 8,419 | | | | | | | | |
Interest only strip | | | | | 27 | | | | | | — | | | | | | — | | | | | | 27 | | | | | | | | |
| | | | $ | 27,334 | | | | | $ | — | | | | | $ | 3,705 | | | | | $ | 23,629 | | | | | | | | |
Non-recurring fair value measurements: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired loans | | | | $ | 3,472 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,472 | | | | | $ | 169 | | |
(Dollars in thousands) | | | Obligations of U.S. Government Entities and Agencies | | | SBA Servicing Asset | | | Interest Only Strip | | | Liabilities | | ||||||||||||
Fair value, January 1, 2019 | | | | $ | 15,183 | | | | | $ | 8,419 | | | | | $ | 27 | | | | | $ | — | | |
Total gain included in income | | | | | — | | | | | | 230 | | | | | | 12 | | | | | | — | | |
Settlements | | | | | — | | | | | | 349 | | | | | | — | | | | | | — | | |
Prepayments/paydowns | | | | | (903) | | | | | | (355) | | | | | | — | | | | | | — | | |
Transfers in and/or out of level 3 | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Fair value, June 30, 2019 | | | | $ | 14,280 | | | | | $ | 8,643 | | | | | $ | 39 | | | | | $ | — | | |
(Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | |
Fair value, January 1, 2018 | | | | $ | 16,661 | | | | | $ | 9,329 | | | | | $ | 36 | | | | | $ | — | | |
Total loss included in income | | | | | — | | | | | | (33) | | | | | | (5) | | | | | | — | | |
Settlements | | | | | — | | | | | | 211 | | | | | | — | | | | | | — | | |
Prepayments/paydowns | | | | | (206) | | | | | | (224) | | | | | | — | | | | | | — | | |
Transfers in and/or out of level 3 | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Fair value, June 30, 2018 | | | | $ | 16,455 | | | | | $ | 9,283 | | | | | $ | 31 | | | | | $ | — | | |
(Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | |
Fair value, January 1, 2018 | | | | $ | 16,661 | | | | | $ | 9,329 | | | | | $ | 36 | | | | | $ | — | | |
Total loss included in income | | | | | — | | | | | | 891 | | | | | | (9) | | | | | | — | | |
Settlements | | | | | — | | | | | | (350) | | | | | | — | | | | | | — | | |
Prepayments/paydowns | | | | | (1,478) | | | | | | (1,451) | | | | | | — | | | | | | — | | |
Transfers in and/or out of level 3 | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Fair value, December 31, 2018 | | | | $ | 15,183 | | | | | $ | 8,419 | | | | | $ | 27 | | | | | $ | — | | |
| | | | Valuation Technique | | | Unobservable Input | | | General Range | |
| June 30, 2019 | | | | | | | | | | |
| Obligations of U.S. Government entities and agencies | | | Discounted Cash Flows | | | Discount Rate | | | 0% – 3% | |
| SBA servicing asset and interest only strip | | | Discounted Cash Flows | | | Prepayment speed | | | 8.74% – 14.60% | |
| | | | | | | Discount rate | | | 5.99% – 12.28% | |
| December 31, 2018 | | | | | | | | | | |
| Obligations of U.S. Government entities and agencies | | | Discounted Cash Flows | | | Discount Rate | | | 0% – 3% | |
| SBA servicing asset and interest only strip | | | Discounted Cash Flows | | | Prepayment speed | | | 6.82% – 12.87% | |
| | | | | | | Discount rate | | | 8.78% – 14.56% | |
| | | Carrying Amount | | | Estimated Fair Value at June 30, 2019 | | ||||||||||||||||||||||||
(Dollars in thousands) | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | ||||||||||||||||||
Financial Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash, due from banks, and federal funds sold | | | | $ | 157,083 | | | | | $ | — | | | | | $ | 157,083 | | | | | $ | — | | | | | $ | 157,083 | | |
Securities purchased under agreements to resell | | | | | 15,000 | | | | | | — | | | | | | 15,000 | | | | | | — | | | | | | 15,000 | | |
Investment securities | | | | | 17,846 | | | | | | — | | | | | | 3,566 | | | | | | 14,280 | | | | | | 17,846 | | |
FHLB stock | | | | | 1,292 | | | | | | — | | | | | | — | | | | | | — | | | | | | N/A | | |
Loans, net | | | | | 1,181,936 | | | | | | — | | | | | | — | | | | | | 1,208,175 | | | | | | 1,208,175 | | |
Loans held for sale | | | | | 69,686 | | | | | | — | | | | | | 69,686 | | | | | | — | | | | | | 69,686 | | |
Accrued interest receivable | | | | | 5,290 | | | | | | — | | | | | | — | | | | | | 5,290 | | | | | | 5,290 | | |
SBA servicing assets | | | | | 8,643 | | | | | | — | | | | | | — | | | | | | 8,643 | | | | | | 8,643 | | |
Mortgage servicing assets | | | | | 16,771 | | | | | | — | | | | | | — | | | | | | 17,019 | | | | | | 17,019 | | |
Interest only strips | | | | | 39 | | | | | | — | | | | | | — | | | | | | 39 | | | | | | 39 | | |
Financial Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | | 1,296,187 | | | | | | — | | | | | | 1,297,483 | | | | | | — | | | | | | 1,297,483 | | |
Other borrowings | | | | | 3,585 | | | | | | — | | | | | | 3,585 | | | | | | — | | | | | | 3,585 | | |
Accrued interest payable | | | | | 1,415 | | | | | | — | | | | | | 1,415 | | | | | | — | | | | | | 1,415 | | |
| | | Carrying Amount | | | Estimated Fair Value at December 31, 2018 | | ||||||||||||||||||||||||
(Dollars in thousands) | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | ||||||||||||||||||
Financial Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash, due from banks, and federal funds sold | | | | $ | 138,427 | | | | | $ | — | | | | | $ | 138,427 | | | | | $ | — | | | | | $ | 138,427 | | |
Securities purchased under agreements to resell | | | | | 15,000 | | | | | | — | | | | | | 15,000 | | | | | | — | | | | | | 15,000 | | |
Investment securities | | | | | 18,888 | | | | | | — | | | | | | 3,705 | | | | | | 15,183 | | | | | | 18,888 | | |
FHLB stock | | | | | 1,163 | | | | | | — | | | | | | — | | | | | | — | | | | | | N/A | | |
Loans, net | | | | | 1,136,930 | | | | | | — | | | | | | — | | | | | | 1,166,945 | | | | | | 1,166,945 | | |
Loans held for sale | | | | | 56,865 | | | | | | — | | | | | | 56,865 | | | | | | — | | | | | | 56,865 | | |
Accrued interest receivable | | | | | 4,957 | | | | | | — | | | | | | — | | | | | | 4,957 | | | | | | 4,957 | | |
SBA servicing asset | | | | | 8,419 | | | | | | — | | | | | | — | | | | | | 8,419 | | | | | | 8,419 | | |
Mortgage servicing assets | | | | | 14,934 | | | | | | | | | | | | | | | | | | 16,460 | | | | | | 16,460 | | |
Interest only strips | | | | | 27 | | | | | | — | | | | | | — | | | | | | 27 | | | | | | 27 | | |
Financial Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | | 1,244,232 | | | | | | — | | | | | | 1,242,863 | | | | | | — | | | | | | 1,242,863 | | |
Other borrowings | | | | | 4,257 | | | | | | — | | | | | | 4,257 | | | | | | — | | | | | | 4,257 | | |
Accrued interest payable | | | | | 1,251 | | | | | | — | | | | | | 1,251 | | | | | | — | | | | | | 1,251 | | |
| | | Actual | | | For Capital Adequacy Purposes: | | | To Be Well Capitalized Under Prompt Corrective Action Provisions: | | |||||||||||||||||||||||||||
| | | Amount | | | Ratio | | | Amount ≥ | | | Ratio ≥ | | | Amount ≥ | | | Ratio ≥ | | ||||||||||||||||||
As of June 30, 2019: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Capital (to Risk Weighted Assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | $ | 182,130 | | | | | | 18.66% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 180,150 | | | | | | 18.47% | | | | | | 78,009 | | | | | | 8.0% | | | | | | 97,512 | | | | | | 10.0% | | |
Tier I Capital (to Risk Weighted Assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 175,647 | | | | | | 17.99% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 173,667 | | | | | | 17.81% | | | | | | 58,507 | | | | | | 6.0% | | | | | | 78,009 | | | | | | 8.0% | | |
Common Tier 1 (CET1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 175,647 | | | | | | 17.99% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 173,667 | | | | | | 17.81% | | | | | | 43,880 | | | | | | 4.5% | | | | | | 63,383 | | | | | | 6.5% | | |
Tier 1 Capital (to Average Assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 175,647 | | | | | | 11.67% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 173,667 | | | | | | 11.54% | | | | | | 60,178 | | | | | | 4.0% | | | | | | 75,222 | | | | | | 5.0% | | |
As of December 31, 2018: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Capital (to Risk Weighted Assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | $ | 166,851 | | | | | | 18.16% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 163,339 | | | | | | 17.80% | | | | | | 73,392 | | | | | | 8.0% | | | | | | 91,740 | | | | | | 10.0% | | |
Tier I Capital (to Risk Weighted Assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 160,207 | | | | | | 17.44% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 156,696 | | | | | | 17.08% | | | | | | 55,044 | | | | | | 6.0% | | | | | | 73,392 | | | | | | 8.0% | | |
Common Tier 1 (CET1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 160,207 | | | | | | 17.44% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 156,696 | | | | | | 17.08% | | | | | | 41,283 | | | | | | 4.5% | | | | | | 59,631 | | | | | | 6.5% | | |
Tier 1 Capital (to Average Assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 160,207 | | | | | | 11.14% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 156,696 | | | | | | 10.91% | | | | | | 57,455 | | | | | | 4.0% | | | | | | 71,819 | | | | | | 5.0% | | |
| | | June 30, 2019 | | |||||||||
| | | Shares | | | Weighted Average Exercise Price | | ||||||
Outstanding at January 1, 2019 | | | | | 240,000 | | | | | $ | 12.70 | | |
Granted | | | | | — | | | | | | — | | |
Exercised | | | | | — | | | | | | — | | |
Forfeited | | | | | — | | | | | | — | | |
Outstanding at June 30, 2019 | | | | | 240,000 | | | | | $ | 12.70 | | |
| | | June 30, 2019 | | |||||||||
Nonvested Shares | | | Shares | | | Weighted- Average Grant-Date Fair Value | | ||||||
Nonvested at January 1, 2019 | | | | | 278,202 | | | | | $ | 7.07 | | |
Granted | | | | | 48,724 | | | | | | 13.75 | | |
Vested | | | | | (157,316) | | | | | | 6.68 | | |
Forfeited | | | | | (406) | | | | | | 9.85 | | |
Nonvested at June 30, 2019 | | | | | 169,204 | | | | | $ | 9.35 | | |
| | | Six Months Ended June 30, | | |||||||||
(Dollars in thousands except per share data) | | | 2019 | | | 2018 | | ||||||
Basic | | | | | | | | | | | | | |
Net Income | | | | $ | 21,692 | | | | | $ | 21,745 | | |
Weighted average common shares outstanding | | | | | 24,237,168 | | | | | | 24,102,450 | | |
Basic earnings per common share | | | | $ | 0.90 | | | | | $ | 0.90 | | |
Diluted | | | | | | | | | | | | | |
Net Income | | | | | 21,692 | | | | | | 21,745 | | |
Weighted average common shares outstanding for basic earnings per common share | | | | | 24,237,168 | | | | | | 24,102,450 | | |
Add: Dilutive effects of restricted stock and options | | | | | 190,474 | | | | | | 295,058 | | |
Average shares and dilutive potential common shares | | | | | 24,427,642 | | | | | | 24,397,508 | | |
Diluted earnings per common share | | | | $ | 0.89 | | | | | $ | 0.89 | | |
| | | June 30, 2019 | | |||||||||||||||||||||
(Dollars in thousands) | | | Gross Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Estimated Fair Value | | ||||||||||||
Obligations of U.S. Government entities and agencies | | | | $ | 14,280 | | | | | $ | — | | | | | $ | — | | | | | $ | 14,280 | | |
States and political subdivisions | | | | | 1,247 | | | | | | 22 | | | | | | — | | | | | | 1,269 | | |
Mortgage-backed GSE residential | | | | | 2,350 | | | | | | — | | | | | | (53) | | | | | | 2,297 | | |
Total | | | | $ | 17,877 | | | | | $ | 22 | | | | | $ | (53) | | | | | $ | 17,846 | | |
| | | December 31, 2018 | | |||||||||||||||||||||
(Dollars in thousands) | | | Gross Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Estimated Fair Value | | ||||||||||||
Obligations of U.S. Government entities and agencies | | | | $ | 15,183 | | | | | $ | — | | | | | $ | — | | | | | $ | 15,183 | | |
States and political subdivisions | | | | | 1,248 | | | | | | — | | | | | | (35) | | | | | | 1,213 | | |
Mortgage-backed GSE residential | | | | | 2,607 | | | | | | — | | | | | | (115) | | | | | | 2,492 | | |
Total | | | | $ | 19,038 | | | | | $ | — | | | | | $ | (150) | | | | | $ | 18,888 | | |
| | | Securities Available for Sale | | |||||||||
(Dollars in thousands) | | | Amortized Cost | | | Estimated Fair Value | | ||||||
Due in one year or less | | | | $ | 608 | | | | | $ | 608 | | |
Due after one year but less than five years | | | | | 2,858 | | | | | | 2,858 | | |
Due after five years but less than ten years | | | | | 4,620 | | | | | | 4,642 | | |
Due in more than ten years | | | | | 7,441 | | | | | | 7,441 | | |
Mortgage-backed GSE residential | | | | | 2,350 | | | | | | 2,297 | | |
Total | | | | $ | 17,877 | | | | | $ | 17,846 | | |
| | | June 30, 2019 | | |||||||||||||||||||||
| | | Twelve Months or Less | | | Over Twelve Months | | ||||||||||||||||||
(Dollars in thousands) | | | Gross Unrealized Losses | | | Estimated Fair Value | | | Gross Unrealized Losses | | | Estimated Fair Value | | ||||||||||||
States and political subdivisions | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Mortgage-backed GSE residential | | | | | — | | | | | | — | | | | | | (53) | | | | | | 2,292 | | |
Total | | | | $ | — | | | | | $ | — | | | | | $ | (53) | | | | | $ | 2,292 | | |
|
| | | December 31, 2018 | | |||||||||||||||||||||
| | | Twelve Months or Less | | | Over Twelve Months | | ||||||||||||||||||
(Dollars in thousands) | | | Gross Unrealized Losses | | | Estimated Fair Value | | | Gross Unrealized Losses | | | Estimated Fair Value | | ||||||||||||
States and political subdivisions | | | | $ | (35) | | | | | $ | 1,213 | | | | | $ | — | | | | | $ | — | | |
Mortgage-backed GSE residential | | | | | — | | | | | | — | | | | | | (115) | | | | | | 2,492 | | |
Total | | | | $ | (35) | | | | | $ | 1,213 | | | | | $ | (115) | | | | | $ | 2,492 | | |
(Dollars in thousands) | | | June 30, 2019 | | | December 31, 2018 | | ||||||
Construction and development | | | | $ | 37,132 | | | | | $ | 42,718 | | |
Commercial real estate | | | | | 420,332 | | | | | | 396,598 | | |
Commercial and industrial | | | | | 43,771 | | | | | | 33,100 | | |
Consumer | | | | | 1,936 | | | | | | 2,804 | | |
Residential real estate | | | | | 687,389 | | | | | | 670,341 | | |
Other | | | | | 351 | | | | | | 153 | | |
Total loans receivable | | | | | 1,190,911 | | | | | | 1,145,714 | | |
Unearned income | | | | | (2,492) | | | | | | (2,139) | | |
Allowance for loan losses | | | | | (6,483) | | | | | | (6,645) | | |
Loans, net | | | | $ | 1,181,936 | | | | | $ | 1,136,930 | | |
(Dollars in thousands) | | | Construction and Development | | | Commercial Real Estate | | | Commercial and Industrial | | | Consumer | | | Residential Real Estate | | | Other | | | Unallocated | | | Total | | ||||||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 235 | | | | | $ | 2,601 | | | | | $ | 380 | | | | | $ | 387 | | | | | $ | 3,042 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,645 | | |
Charge-offs | | | | | — | | | | | | — | | | | | | (14) | | | | | | (331) | | | | | | — | | | | | | — | | | | | | — | | | | | | (345) | | |
Recoveries | | | | | — | | | | | | 11 | | | | | | — | | | | | | 172 | | | | | | — | | | | | | — | | | | | | — | | | | | | 183 | | |
Provision | | | | | (106) | | | | | | (228) | | | | | | 221 | | | | | | (32) | | | | | | 123 | | | | | | 1 | | | | | | 21 | | | | | | — | | |
Ending balance | | | | $ | 129 | | | | | $ | 2,384 | | | | | $ | 587 | | | | | $ | 196 | | | | | $ | 3,165 | | | | | $ | 1 | | | | | $ | 21 | | | | | $ | 6,483 | | |
Ending balance – individually evaluated for impairment | | | | $ | — | | | | | $ | 853 | | | | | $ | 91 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 944 | | |
Ending balance – collectively evaluated for impairment | | | | $ | 129 | | | | | $ | 1,531 | | | | | $ | 496 | | | | | $ | 6 | | | | | $ | 3,165 | | | | | $ | 1 | | | | | $ | 21 | | | | | $ | 5,349 | | |
Ending balance – acquired with deteriorated credit quality | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 190 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 190 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance – individually evaluated for impairment | | | | $ | 1,360 | | | | | $ | 7,968 | | | | | $ | 952 | | | | | $ | — | | | | | $ | 7,661 | | | | | $ | — | | | | | $ | — | | | | | $ | 17,941 | | |
Ending balance – collectively evaluated for impairment | | | | $ | 35,158 | | | | | $ | 410,619 | | | | | $ | 42,686 | | | | | $ | 486 | | | | | $ | 679,728 | | | | | $ | 351 | | | | | $ | — | | | | | $ | 1,169,028 | | |
Ending balance – acquired with deteriorated credit quality | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1,450 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1,450 | | |
Ending balance | | | | $ | 36,518 | | | | | $ | 418,587 | | | | | $ | 43,638 | | | | | $ | 1,936 | | | | | $ | 687,389 | | | | | $ | 351 | | | | | $ | — | | | | | $ | 1,188,419 | | |
(Dollars in thousands) | | | Construction and Development | | | Commercial Real Estate | | | Commercial and Industrial | | | Consumer | | | Residential Real Estate | | | Other | | | Unallocated | | | Total | | ||||||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 127 | | | | | $ | 2,135 | | | | | $ | 261 | | | | | $ | 1,167 | | | | | $ | 3,048 | | | | | $ | 3 | | | | | $ | 184 | | | | | $ | 6,925 | | |
Charge-offs | | | | | — | | | | | | (14) | | | | | | — | | | | | | (1,374) | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,388) | | |
Recoveries | | | | | — | | | | | | 9 | | | | | | 2 | | | | | | 348 | | | | | | — | | | | | | — | | | | | | — | | | | | | 359 | | |
Provision | | | | | 33 | | | | | | 14 | | | | | | — | | | | | | 510 | | | | | | 315 | | | | | | (2) | | | | | | — | | | | | | 870 | | |
Ending balance | | | | $ | 160 | | | | | $ | 2,144 | | | | | $ | 263 | | | | | $ | 651 | | | | | $ | 3,363 | | | | | $ | 1 | | | | | $ | 184 | | | | | $ | 6,766 | | |
Ending balance – individually evaluated for impairment | | | | $ | — | | | | | $ | 703 | | | | | $ | 110 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 813 | | |
Ending balance – collectively evaluated for impairment | | | | $ | 160 | | | | | $ | 1,441 | | | | | $ | 153 | | | | | $ | — | | | | | $ | 3,363 | | | | | $ | 1 | | | | | $ | 184 | | | | | $ | 5,302 | | |
Ending balance – acquired with deteriorated credit quality | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 651 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 651 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance – individually evaluated for impairment | | | | $ | 1,360 | | | | | $ | 6,988 | | | | | $ | 787 | | | | | $ | — | | | | | $ | 2,228 | | | | | $ | — | | | | | $ | — | | | | | $ | 11,363 | | |
Ending balance – collectively evaluated for impairment | | | | $ | 47,576 | | | | | $ | 368,747 | | | | | $ | 43,855 | | | | | $ | 198 | | | | | $ | 617,293 | | | | | $ | 155 | | | | | $ | — | | | | | $ | 1,077,824 | | |
Ending balance – acquired with deteriorated credit quality | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 5,042 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 5,042 | | |
Ending balance | | | | $ | 48,936 | | | | | $ | 375,735 | | | | | $ | 44,642 | | | | | $ | 5,240 | | | | | $ | 619,521 | | | | | $ | 155 | | | | | $ | — | | | | | $ | 1,094,229 | | |
|
(Dollars in thousands) | | | Construction and Development | | | Commercial Real Estate | | | Commercial and Industrial | | | Consumer | | | Residential Real Estate | | | Other | | | Unallocated | | | Total | | ||||||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 127 | | | | | $ | 2,135 | | | | | $ | 261 | | | | | $ | 1,167 | | | | | $ | 3,048 | | | | | $ | 3 | | | | | $ | 184 | | | | | $ | 6,925 | | |
Charge-offs | | | | | — | | | | | | (88) | | | | | | (39) | | | | | | (1,939) | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,066) | | |
Recoveries | | | | | — | | | | | | 22 | | | | | | — | | | | | | 527 | | | | | | — | | | | | | — | | | | | | — | | | | | | 549 | | |
Provision | | | | | 108 | | | | | | 532 | | | | | | 158 | | | | | | 632 | | | | | | (6) | | | | | | (3) | | | | | | (184) | | | | | | 1,237 | | |
Ending balance | | | | $ | 235 | | | | | $ | 2,601 | | | | | $ | 380 | | | | | $ | 387 | | | | | $ | 3,042 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,645 | | |
Ending balance – individually evaluated for impairment | | | | $ | 117 | | | | | $ | 872 | | | | | $ | 110 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1,099 | | |
Ending balance – collectively evaluated for impairment | | | | $ | 118 | | | | | $ | 1,729 | | | | | $ | 270 | | | | | $ | 3 | | | | | $ | 3,042 | | | | | $ | — | | | | | $ | — | | | | | $ | 5,162 | | |
Ending balance – acquired with deteriorated credit quality | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 384 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 384 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance – individually evaluated for impairment | | | | $ | 1,360 | | | | | $ | 8,074 | | | | | $ | 986 | | | | | $ | — | | | | | $ | 1,722 | | | | | $ | — | | | | | $ | — | | | | | $ | 12,142 | | |
Ending balance – collectively evaluated for impairment | | | | $ | 40,928 | | | | | $ | 386,889 | | | | | $ | 32,040 | | | | | $ | 163 | | | | | $ | 668,619 | | | | | $ | 153 | | | | | $ | — | | | | | $ | 1,128,792 | | |
Ending balance – acquired with deteriorated credit quality | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 2,641 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 2,641 | | |
Ending balance | | | | $ | 42,288 | | | | | $ | 394,963 | | | | | $ | 33,026 | | | | | $ | 2,804 | | | | | $ | 670,341 | | | | | $ | 153 | | | | | $ | — | | | | | $ | 1,143,575 | | |
(Dollars in thousands) June 30, 2019 | | | Unpaid Total Principal Balance | | | Recorded Investment With No Allowance | | | Recorded Investment With Allowance | | | Total Recorded Investment | | | Related Allowance | | | Average Recorded Investment | | ||||||||||||||||||
Construction and development | | | | $ | 1,360 | | | | | $ | 1,360 | | | | | $ | — | | | | | $ | 1,360 | | | | | $ | — | | | | | $ | 1,360 | | |
Commercial real estate | | | | | 7,968 | | | | | | 5,716 | | | | | | 2,776 | | | | | | 8,492 | | | | | | 853 | | | | | | 8,054 | | |
Commercial and industrial | | | | | 952 | | | | | | 289 | | | | | | 666 | | | | | | 955 | | | | | | 91 | | | | | | 962 | | |
Residential real estate | | | | | 7,661 | | | | | | 7,661 | | | | | | — | | | | | | 7,661 | | | | | | — | | | | | | 5,028 | | |
Total | | | | $ | 17,941 | | | | | $ | 15,026 | | | | | $ | 3,442 | | | | | $ | 18,468 | | | | | $ | 944 | | | | | $ | 15,404 | | |
|
(Dollars in thousands) December 31, 2018 | | | Unpaid Total Principal Balance | | | Recorded Investment With No Allowance | | | Recorded Investment With Allowance | | | Total Recorded Investment | | | Related Allowance | | | Average Recorded Investment | | ||||||||||||||||||
Construction and development | | | | $ | 1,360 | | | | | $ | — | | | | | $ | 1,360 | | | | | $ | 1,360 | | | | | $ | 117 | | | | | $ | 1,922 | | |
Commercial real estate | | | | | 8,144 | | | | | | 5,312 | | | | | | 2,967 | | | | | | 8,279 | | | | | | 872 | | | | | | 7,474 | | |
Commercial and industrial | | | | | 986 | | | | | | 302 | | | | | | 684 | | | | | | 986 | | | | | | 110 | | | | | | 1,165 | | |
Residential real estate | | | | | 1,722 | | | | | | 1,722 | | | | | | — | | | | | | 1,722 | | | | | | — | | | | | | 1,705 | | |
Total | | | | $ | 12,212 | | | | | $ | 7,336 | | | | | $ | 5,011 | | | | | $ | 12,347 | | | | | $ | 1,099 | | | | | $ | 12,266 | | |
|
(Dollars in thousands) June 30, 2019 | | | Current | | | 30 – 89 Days | | | Accruing Greater than 90 Days | | | Total Accruing Past Due | | | Non-accrual | | | Total Financing Receivables | | ||||||||||||||||||
Construction and Development | | | | $ | 35,158 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1,360 | | | | | $ | 36,518 | | |
Commercial Real Estate | | | | | 411,356 | | | | | | 3,285 | | | | | | — | | | | | | 3,285 | | | | | | 3,946 | | | | | | 418,587 | | |
Commercial and Industrial | | | | | 42,951 | | | | | | 21 | | | | | | — | | | | | | 21 | | | | | | 666 | | | | | | 43,638 | | |
Consumer | | | | | 1,936 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,936 | | |
Residential Real Estate | | | | | 675,867 | | | | | | 3,861 | | | | | | — | | | | | | 3,861 | | | | | | 7,661 | | | | | | 687,389 | | |
Other | | | | | 351 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 351 | | |
Total | | | | $ | 1,167,619 | | | | | $ | 7,167 | | | | | $ | — | | | | | $ | 7,167 | | | | | $ | 13,633 | | | | | $ | 1,188,419 | | |
|
(Dollars in thousands) December 31, 2018 | | | Current | | | 30 – 89 Days | | | Accruing Greater than 90 Days | | | Total Accruing Past Due | | | Non-accrual | | | Total Financing Receivables | | ||||||||||||||||||
Construction and Development | | | | $ | 42,288 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 42,288 | | |
Commercial Real Estate | | | | | 390,601 | | | | | | 1,102 | | | | | | — | | | | | | 1,102 | | | | | | 3,260 | | | | | | 394,963 | | |
Commercial and Industrial | | | | | 32,315 | | | | | | 26 | | | | | | — | | | | | | 26 | | | | | | 685 | | | | | | 33,026 | | |
Consumer | | | | | 2,804 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,804 | | |
Residential Real Estate | | | | | 651,439 | | | | | | 17,180 | | | | | | — | | | | | | 17,180 | | | | | | 1,722 | | | | | | 670,341 | | |
Other | | | | | 153 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 153 | | |
Total | | | | $ | 1,119,600 | | | | | $ | 18,308 | | | | | $ | — | | | | | $ | 18,308 | | | | | $ | 5,667 | | | | | $ | 1,143,575 | | |
(Dollars in thousands) June 30, 2019 | | | Construction and Development | | | Commercial Real Estate | | | Commercial and Industrial | | | Consumer | | | Residential Real Estate | | | Other | | | Total | | |||||||||||||||||||||
Rating: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | | | $ | 35,158 | | | | | $ | 412,023 | | | | | $ | 42,686 | | | | | $ | 1,936 | | | | | $ | 678,531 | | | | | $ | 351 | | | | | $ | 1,170,685 | | |
Special Mention | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Substandard | | | | | 1,360 | | | | | | 6,564 | | | | | | 952 | | | | | | — | | | | | | 8,858 | | | | | | — | | | | | | 17,734 | | |
Doubtful | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 36,518 | | | | | $ | 418,587 | | | | | $ | 43,638 | | | | | $ | 1,936 | | | | | $ | 687,389 | | | | | $ | 351 | | | | | $ | 1,188,419 | | |
|
(Dollars in thousands) December 31, 2018 | | | Construction and Development | | | Commercial Real Estate | | | Commercial and Industrial | | | Consumer | | | Residential Real Estate | | | Other | | | Total | | |||||||||||||||||||||
Rating: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | | | $ | 40,928 | | | | | $ | 383,857 | | | | | $ | 32,040 | | | | | $ | 2,804 | | | | | $ | 667,249 | | | | | $ | 153 | | | | | $ | 1,127,031 | | |
Special Mention | | | | | — | | | | | | 5,112 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,112 | | |
Substandard | | | | | 1,360 | | | | | | 5,994 | | | | | | 986 | | | | | | — | | | | | | 3,092 | | | | | | — | | | | | | 11,432 | | |
Doubtful | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 42,288 | | | | | $ | 394,963 | | | | | $ | 33,026 | | | | | $ | 2,804 | | | | | $ | 670,341 | | | | | $ | 153 | | | | | $ | 1,143,575 | | |
(Dollars in thousands) June 30, 2019 | | | Accruing | | | Nonaccrual | | | Total | | |||||||||
Commercial real estate | | | | $ | 3,130 | | | | | $ | 777 | | | | | $ | 3,907 | | |
Commercial and industrial | | | | | — | | | | | | 9 | | | | | | 9 | | |
Total | | | | $ | 3,130 | | | | | $ | 786 | | | | | $ | 3,916 | | |
|
(Dollars in thousands) December 31, 2018 | | | Accruing | | | Nonaccrual | | | Total | | |||||||||
Commercial real estate | | | | $ | 3,298 | | | | | $ | — | | | | | $ | 3,298 | | |
Commercial and industrial | | | | | — | | | | | | 13 | | | | | | 13 | | |
Total | | | | $ | 3,298 | | | | | $ | 13 | | | | | $ | 3,311 | | |
(Dollars in thousands) Type of Concession | | | June 30, 2019 | | | December 31, 2018 | | ||||||
Deferral of payments | | | | $ | 648 | | | | | $ | — | | |
Extension of maturity date | | | | | 3,268 | | | | | | 3,311 | | |
Total TDR loans | | | | $ | 3,916 | | | | | $ | 3,311 | | |
(Dollars in thousands) Type | | | June 30, 2019 | | | December 31, 2018 | | ||||||||||||||||||
| Number of Loans | | | Recorded Investment | | | Number of Loans | | | Recorded Investment | | ||||||||||||||
Commercial real estate | | | | | 7 | | | | | $ | 4,408 | | | | | | 6 | | | | | $ | 3,527 | | |
Commercial and industrial | | | | | 1 | | | | | | 9 | | | | | | 1 | | | | | | 116 | | |
Total | | | | | 8 | | | | | $ | 4,417 | | | | | | 7 | | | | | $ | 3,643 | | |
(Dollars in thousands) | | | June 30, 2019 | | | December 31, 2018 | | | June 30, 2018 | | |||||||||
Beginning of period | | | | $ | 8,419 | | | | | $ | 9,329 | | | | | $ | 9,329 | | |
Additions | | | | | 579 | | | | | | 350 | | | | | | 178 | | |
Disposals | | | | | (355) | | | | | | (1,260) | | | | | | (224) | | |
End of period, fair value | | | | $ | 8,643 | | | | | $ | 8,419 | | | | | | 9,283 | | |
(Dollars in thousands) | | | June 30, 2019 | | | December 31, 2018 | | | June 30, 2018 | | |||||||||
Beginning of period | | | | $ | 14,934 | | | | | $ | 6,843 | | | | | $ | 6,843 | | |
Additions | | | | | 3,512 | | | | | | 10,253 | | | | | | 5,235 | | |
Amortization expense | | | | | (1,675) | | | | | | (2,162) | | | | | | (841) | | |
End of period, carrying value | | | | $ | 16,771 | | | | | $ | 14,934 | | | | | $ | 11,237 | | |
(Dollars in thousands) | | | |||||
Operating lease cost | | | | $ | 1,036 | | |
Variable lease cost | | | | | 88 | | |
Short-term lease cost | | | | | — | | |
Sublease income | | | | | — | | |
Total net lease cost | | | | $ | 1,124 | | |
(Dollars in thousands) Twelve Months Ended June 30, | | | Lease Liability | | |||
2020 | | | | $ | 2,001 | | |
2021 | | | | | 1,964 | | |
2022 | | | | | 1,866 | | |
2023 | | | | | 1,921 | | |
2024 | | | | | 1,831 | | |
After June 30, 2024 | | | | | 5,405 | | |
Total lease payments | | | | | 14,988 | | |
Less: interest discount | | | | | (1,735) | | |
Present value of lease liabilities | | | | $ | 13,253 | | |
|
(Dollars in thousands) Supplemental Lease Information | | | June 30, 2019 | | |||
Weighted-average remaining lease term (years) | | | | | 7.8 | | |
Weighted-average discount rate | | | | | 3.14% | | |
Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | |
Operating cash flows from operating leases (cash payments) | | | | $ | 967 | | |
Operating cash flows from operating leases (lease liability reduction) | | | | $ | 761 | | |
Operating lease right-of-use assets obtained in exchange for leases entered into during the period | | | | $ | 13,610 | | |
(Dollars in thousands) | | | June 30, 2019 | | | December 31, 2018 | | ||||||
Financial instruments whose contract amounts represent credit risk: | | | | | | | | | | | | | |
Commitments to extend credit | | | | $ | 63,693 | | | | | $ | 65,283 | | |
Standby letters of credit | | | | $ | 4,509 | | | | | $ | 4,250 | | |
| | | June 30, 2019 | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | | Total Gains (Losses) | | |||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Recurring fair value measurements: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Securities available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Obligations of U.S. Government entities and agencies | | | | $ | 14,280 | | | | | $ | — | | | | | $ | — | | | | | $ | 14,280 | | | | | | | | |
States and political subdivisions | | | | | 1,269 | | | | | | — | | | | | | 1,269 | | | | | | — | | | | | | | | |
Mortgage-backed GSE residential | | | | | 2,297 | | | | | | — | | | | | | 2,297 | | | | | | — | | | | | | | | |
Total securities available for sale | | | | | 17,846 | | | | | | — | | | | | | 3,566 | | | | | | 14,280 | | | | | | | | |
SBA servicing asset | | | | | 8,643 | | | | | | — | | | | | | — | | | | | | 8,643 | | | | | | | | |
Interest only strip | | | | | 39 | | | | | | — | | | | | | — | | | | | | 39 | | | | | | | | |
| | | | $ | 26,528 | | | | | $ | — | | | | | $ | 3,566 | | | | | $ | 22,962 | | | | | | | | |
Non-recurring fair value measurements: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired loans | | | | $ | 3,456 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,456 | | | | | $ | 139 | | |
|
| | | December 31, 2018 | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | | Total Gains (Losses) | | |||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Recurring fair value measurements: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Securities available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Obligations of U.S. Government entities and agencies | | | | $ | 15,183 | | | | | $ | — | | | | | $ | — | | | | | $ | 15,183 | | | | | | | | |
States and political subdivisions | | | | | 1,213 | | | | | | — | | | | | | 1,213 | | | | | | — | | | | | | | | |
Mortgage-backed GSE residential | | | | | 2,492 | | | | | | — | | | | | | 2,492 | | | | | | — | | | | | | | | |
Total securities available for sale | | | | | 18,888 | | | | | | — | | | | | | 3,705 | | | | | | 15,183 | | | | | | | | |
SBA servicing asset | | | | | 8,419 | | | | | | — | | | | | | — | | | | | | 8,419 | | | | | | | | |
Interest only strip | | | | | 27 | | | | | | — | | | | | | — | | | | | | 27 | | | | | | | | |
| | | | $ | 27,334 | | | | | $ | — | | | | | $ | 3,705 | | | | | $ | 23,629 | | | | | | | | |
Non-recurring fair value measurements: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired loans | | | | $ | 3,472 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,472 | | | | | $ | 169 | | |
(Dollars in thousands) | | | Obligations of U.S. Government Entities and Agencies | | | SBA Servicing Asset | | | Interest Only Strip | | | Liabilities | | ||||||||||||
Fair value, January 1, 2019 | | | | $ | 15,183 | | | | | $ | 8,419 | | | | | $ | 27 | | | | | $ | — | | |
Total gain included in income | | | | | — | | | | | | 230 | | | | | | 12 | | | | | | — | | |
Settlements | | | | | — | | | | | | 349 | | | | | | — | | | | | | — | | |
Prepayments/paydowns | | | | | (903) | | | | | | (355) | | | | | | — | | | | | | — | | |
Transfers in and/or out of level 3 | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Fair value, June 30, 2019 | | | | $ | 14,280 | | | | | $ | 8,643 | | | | | $ | 39 | | | | | $ | — | | |
(Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | |
Fair value, January 1, 2018 | | | | $ | 16,661 | | | | | $ | 9,329 | | | | | $ | 36 | | | | | $ | — | | |
Total loss included in income | | | | | — | | | | | | (33) | | | | | | (5) | | | | | | — | | |
Settlements | | | | | — | | | | | | 211 | | | | | | — | | | | | | — | | |
Prepayments/paydowns | | | | | (206) | | | | | | (224) | | | | | | — | | | | | | — | | |
Transfers in and/or out of level 3 | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Fair value, June 30, 2018 | | | | $ | 16,455 | | | | | $ | 9,283 | | | | | $ | 31 | | | | | $ | — | | |
(Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | |
Fair value, January 1, 2018 | | | | $ | 16,661 | | | | | $ | 9,329 | | | | | $ | 36 | | | | | $ | — | | |
Total loss included in income | | | | | — | | | | | | 891 | | | | | | (9) | | | | | | — | | |
Settlements | | | | | — | | | | | | (350) | | | | | | — | | | | | | — | | |
Prepayments/paydowns | | | | | (1,478) | | | | | | (1,451) | | | | | | — | | | | | | — | | |
Transfers in and/or out of level 3 | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Fair value, December 31, 2018 | | | | $ | 15,183 | | | | | $ | 8,419 | | | | | $ | 27 | | | | | $ | — | | |
| | | | Valuation Technique | | | Unobservable Input | | | General Range | |
| June 30, 2019 | | | | | | | | | | |
| Obligations of U.S. Government entities and agencies | | | Discounted Cash Flows | | | Discount Rate | | | 0% – 3% | |
| SBA servicing asset and interest only strip | | | Discounted Cash Flows | | | Prepayment speed | | | 8.74% – 14.60% | |
| | | | | | | Discount rate | | | 5.99% – 12.28% | |
| December 31, 2018 | | | | | | | | | | |
| Obligations of U.S. Government entities and agencies | | | Discounted Cash Flows | | | Discount Rate | | | 0% – 3% | |
| SBA servicing asset and interest only strip | | | Discounted Cash Flows | | | Prepayment speed | | | 6.82% – 12.87% | |
| | | | | | | Discount rate | | | 8.78% – 14.56% | |
| | | Carrying Amount | | | Estimated Fair Value at June 30, 2019 | | ||||||||||||||||||||||||
(Dollars in thousands) | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | ||||||||||||||||||
Financial Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash, due from banks, and federal funds sold | | | | $ | 157,083 | | | | | $ | — | | | | | $ | 157,083 | | | | | $ | — | | | | | $ | 157,083 | | |
Securities purchased under agreements to resell | | | | | 15,000 | | | | | | — | | | | | | 15,000 | | | | | | — | | | | | | 15,000 | | |
Investment securities | | | | | 17,846 | | | | | | — | | | | | | 3,566 | | | | | | 14,280 | | | | | | 17,846 | | |
FHLB stock | | | | | 1,292 | | | | | | — | | | | | | — | | | | | | — | | | | | | N/A | | |
Loans, net | | | | | 1,181,936 | | | | | | — | | | | | | — | | | | | | 1,208,175 | | | | | | 1,208,175 | | |
Loans held for sale | | | | | 69,686 | | | | | | — | | | | | | 69,686 | | | | | | — | | | | | | 69,686 | | |
Accrued interest receivable | | | | | 5,290 | | | | | | — | | | | | | — | | | | | | 5,290 | | | | | | 5,290 | | |
SBA servicing assets | | | | | 8,643 | | | | | | — | | | | | | — | | | | | | 8,643 | | | | | | 8,643 | | |
Mortgage servicing assets | | | | | 16,771 | | | | | | — | | | | | | — | | | | | | 17,019 | | | | | | 17,019 | | |
Interest only strips | | | | | 39 | | | | | | — | | | | | | — | | | | | | 39 | | | | | | 39 | | |
Financial Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | | 1,296,187 | | | | | | — | | | | | | 1,297,483 | | | | | | — | | | | | | 1,297,483 | | |
Other borrowings | | | | | 3,585 | | | | | | — | | | | | | 3,585 | | | | | | — | | | | | | 3,585 | | |
Accrued interest payable | | | | | 1,415 | | | | | | — | | | | | | 1,415 | | | | | | — | | | | | | 1,415 | | |
| | | Carrying Amount | | | Estimated Fair Value at December 31, 2018 | | ||||||||||||||||||||||||
(Dollars in thousands) | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | ||||||||||||||||||
Financial Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash, due from banks, and federal funds sold | | | | $ | 138,427 | | | | | $ | — | | | | | $ | 138,427 | | | | | $ | — | | | | | $ | 138,427 | | |
Securities purchased under agreements to resell | | | | | 15,000 | | | | | | — | | | | | | 15,000 | | | | | | — | | | | | | 15,000 | | |
Investment securities | | | | | 18,888 | | | | | | — | | | | | | 3,705 | | | | | | 15,183 | | | | | | 18,888 | | |
FHLB stock | | | | | 1,163 | | | | | | — | | | | | | — | | | | | | — | | | | | | N/A | | |
Loans, net | | | | | 1,136,930 | | | | | | — | | | | | | — | | | | | | 1,166,945 | | | | | | 1,166,945 | | |
Loans held for sale | | | | | 56,865 | | | | | | — | | | | | | 56,865 | | | | | | — | | | | | | 56,865 | | |
Accrued interest receivable | | | | | 4,957 | | | | | | — | | | | | | — | | | | | | 4,957 | | | | | | 4,957 | | |
SBA servicing asset | | | | | 8,419 | | | | | | — | | | | | | — | | | | | | 8,419 | | | | | | 8,419 | | |
Mortgage servicing assets | | | | | 14,934 | | | | | | | | | | | | | | | | | | 16,460 | | | | | | 16,460 | | |
Interest only strips | | | | | 27 | | | | | | — | | | | | | — | | | | | | 27 | | | | | | 27 | | |
Financial Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | | 1,244,232 | | | | | | — | | | | | | 1,242,863 | | | | | | — | | | | | | 1,242,863 | | |
Other borrowings | | | | | 4,257 | | | | | | — | | | | | | 4,257 | | | | | | — | | | | | | 4,257 | | |
Accrued interest payable | | | | | 1,251 | | | | | | — | | | | | | 1,251 | | | | | | — | | | | | | 1,251 | | |
| | | Actual | | | For Capital Adequacy Purposes: | | | To Be Well Capitalized Under Prompt Corrective Action Provisions: | | |||||||||||||||||||||||||||
| | | Amount | | | Ratio | | | Amount ≥ | | | Ratio ≥ | | | Amount ≥ | | | Ratio ≥ | | ||||||||||||||||||
As of June 30, 2019: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Capital (to Risk Weighted Assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | $ | 182,130 | | | | | | 18.66% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 180,150 | | | | | | 18.47% | | | | | | 78,009 | | | | | | 8.0% | | | | | | 97,512 | | | | | | 10.0% | | |
Tier I Capital (to Risk Weighted Assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 175,647 | | | | | | 17.99% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 173,667 | | | | | | 17.81% | | | | | | 58,507 | | | | | | 6.0% | | | | | | 78,009 | | | | | | 8.0% | | |
Common Tier 1 (CET1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 175,647 | | | | | | 17.99% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 173,667 | | | | | | 17.81% | | | | | | 43,880 | | | | | | 4.5% | | | | | | 63,383 | | | | | | 6.5% | | |
Tier 1 Capital (to Average Assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 175,647 | | | | | | 11.67% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 173,667 | | | | | | 11.54% | | | | | | 60,178 | | | | | | 4.0% | | | | | | 75,222 | | | | | | 5.0% | | |
As of December 31, 2018: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Capital (to Risk Weighted Assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | $ | 166,851 | | | | | | 18.16% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 163,339 | | | | | | 17.80% | | | | | | 73,392 | | | | | | 8.0% | | | | | | 91,740 | | | | | | 10.0% | | |
Tier I Capital (to Risk Weighted Assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 160,207 | | | | | | 17.44% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 156,696 | | | | | | 17.08% | | | | | | 55,044 | | | | | | 6.0% | | | | | | 73,392 | | | | | | 8.0% | | |
Common Tier 1 (CET1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 160,207 | | | | | | 17.44% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 156,696 | | | | | | 17.08% | | | | | | 41,283 | | | | | | 4.5% | | | | | | 59,631 | | | | | | 6.5% | | |
Tier 1 Capital (to Average Assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 160,207 | | | | | | 11.14% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 156,696 | | | | | | 10.91% | | | | | | 57,455 | | | | | | 4.0% | | | | | | 71,819 | | | | | | 5.0% | | |
| | | June 30, 2019 | | |||||||||
| | | Shares | | | Weighted Average Exercise Price | | ||||||
Outstanding at January 1, 2019 | | | | | 240,000 | | | | | $ | 12.70 | | |
Granted | | | | | — | | | | | | — | | |
Exercised | | | | | — | | | | | | — | | |
Forfeited | | | | | — | | | | | | — | | |
Outstanding at June 30, 2019 | | | | | 240,000 | | | | | $ | 12.70 | | |
| | | June 30, 2019 | | |||||||||
Nonvested Shares | | | Shares | | | Weighted- Average Grant-Date Fair Value | | ||||||
Nonvested at January 1, 2019 | | | | | 278,202 | | | | | $ | 7.07 | | |
Granted | | | | | 48,724 | | | | | | 13.75 | | |
Vested | | | | | (157,316) | | | | | | 6.68 | | |
Forfeited | | | | | (406) | | | | | | 9.85 | | |
Nonvested at June 30, 2019 | | | | | 169,204 | | | | | $ | 9.35 | | |
| | | Six Months Ended June 30, | | |||||||||
(Dollars in thousands except per share data) | | | 2019 | | | 2018 | | ||||||
Basic | | | | | | | | | | | | | |
Net Income | | | | $ | 21,692 | | | | | $ | 21,745 | | |
Weighted average common shares outstanding | | | | | 24,237,168 | | | | | | 24,102,450 | | |
Basic earnings per common share | | | | $ | 0.90 | | | | | $ | 0.90 | | |
Diluted | | | | | | | | | | | | | |
Net Income | | | | | 21,692 | | | | | | 21,745 | | |
Weighted average common shares outstanding for basic earnings per common share | | | | | 24,237,168 | | | | | | 24,102,450 | | |
Add: Dilutive effects of restricted stock and options | | | | | 190,474 | | | | | | 295,058 | | |
Average shares and dilutive potential common shares | | | | | 24,427,642 | | | | | | 24,397,508 | | |
Diluted earnings per common share | | | | $ | 0.89 | | | | | $ | 0.89 | | |
| | | 2018 | | | 2017 | | ||||||
ASSETS | | | | | | | | | | | | | |
Cash and due from banks | | | | $ | 130,263 | | | | | $ | 94,371 | | |
Federal funds sold | | | | | 8,164 | | | | | | 1,462 | | |
Cash and cash equivalents | | | | | 138,427 | | | | | | 95,833 | | |
Securities purchased under agreements to resell | | | | | 15,000 | | | | | | 15,000 | | |
Securities available for sale (at fair value) | | | | | 18,888 | | | | | | 21,051 | | |
Loans, less allowance for loan losses of $6,645 and $6,925, respectively | | | | | 1,136,930 | | | | | | 1,060,048 | | |
Loans held for sale | | | | | 56,865 | | | | | | 31,802 | | |
Accrued interest receivable | | | | | 4,957 | | | | | | 4,756 | | |
Federal Home Loan Bank stock | | | | | 1,163 | | | | | | 6,092 | | |
Premises and equipment, net | | | | | 14,391 | | | | | | 12,384 | | |
SBA servicing asset, net | | | | | 8,446 | | | | | | 9,366 | | |
Mortgage servicing asset, net | | | | | 14,934 | | | | | | 6,843 | | |
Bank owned life insurance | | | | | 19,749 | | | | | | 19,271 | | |
Other assets | | | | | 2,900 | | | | | | 6,521 | | |
Total assets | | | | $ | 1,432,650 | | | | | $ | 1,288,967 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | |
Non-interest-bearing demand | | | | $ | 299,182 | | | | | $ | 260,251 | | |
Interest-bearing | | | | | 945,050 | | | | | | 759,733 | | |
Total deposits | | | | | 1,244,232 | | | | | | 1,019,984 | | |
Federal Home Loan Bank advances | | | | | — | | | | | | 120,000 | | |
Other borrowings | | | | | 4,257 | | | | | | 5,039 | | |
Accrued interest payable | | | | | 1,251 | | | | | | 401 | | |
Other liabilities | | | | | 14,302 | | | | | | 8,428 | | |
Total liabilities | | | | | 1,264,042 | | | | | | 1,153,852 | | |
Shareholders’ equity: | | | | | | | | | | | | | |
Common stock, $0.01 par value, 40,000,000 shares authorized, 24,258,062 and 24,074,882 shares issued and outstanding | | | | | 242 | | | | | | 240 | | |
Additional paid-in capital | | | | | 39,915 | | | | | | 38,418 | | |
Retained earnings | | | | | 128,555 | | | | | | 96,525 | | |
Accumulated other comprehensive loss | | | | | (104) | | | | | | (68) | | |
Total shareholders’ equity | | | | | 168,608 | | | | | | 135,115 | | |
Total liabilities and shareholders’ equity | | | | $ | 1,432,650 | | | | | $ | 1,288,967 | | |
|
| | | 2018 | | | 2017 | | ||||||
Interest and dividend income: | | | | | | | | | | | | | |
Loans, including fees | | | | $ | 70,246 | | | | | $ | 59,110 | | |
Other investment income | | | | | 2,169 | | | | | | 1,190 | | |
Federal funds sold | | | | | 464 | | | | | | 214 | | |
Total interest income | | | | | 72,879 | | | | | | 60,514 | | |
Interest expense: | | | | | | | | | | | | | |
Deposits | | | | | 14,011 | | | | | | 7,729 | | |
FHLB advances and other borrowings | | | | | 664 | | | | | | 890 | | |
Total interest expense | | | | | 14,675 | | | | | | 8,619 | | |
Net interest income | | | | | 58,204 | | | | | | 51,895 | | |
Provision for loan losses | | | | | 1,237 | | | | | | 3,058 | | |
Net interest income after provision for loan losses | | | | | 56,967 | | | | | | 48,837 | | |
Noninterest income: | | | | | | | | | | | | | |
Service charges on deposit accounts | | | | | 1,036 | | | | | | 1,274 | | |
Other service charges, commissions and fees | | | | | 10,395 | | | | | | 8,237 | | |
Gain on sale of residential mortgage loans | | | | | 5,679 | | | | | | 3,035 | | |
Mortgage servicing income, net | | | | | 11,994 | | | | | | 8,168 | | |
SBA servicing income, net | | | | | 3,119 | | | | | | 4,527 | | |
Gain on sale of SBA loans | | | | | 4,616 | | | | | | 6,347 | | |
Other income | | | | | 770 | | | | | | 817 | | |
Total noninterest income | | | | | 37,609 | | | | | | 32,405 | | |
Noninterest expense: | | | | | | | | | | | | | |
Salaries and employee benefits | | | | | 23,569 | | | | | | 17,956 | | |
Occupancy | | | | | 4,086 | | | | | | 2,968 | | |
Data processing | | | | | 842 | | | | | | 801 | | |
Advertising | | | | | 613 | | | | | | 634 | | |
Federal deposit insurance | | | | | 395 | | | | | | 403 | | |
Other operating | | | | | 9,070 | | | | | | 8,430 | | |
Total noninterest expense | | | | | 38,575 | | | | | | 31,192 | | |
Income before provision for income taxes | | | | | 56,001 | | | | | | 50,050 | | |
Provision for income taxes | | | | | 14,667 | | | | | | 18,153 | | |
Net income available to common shareholders | | | | $ | 41,334 | | | | | $ | 31,897 | | |
Earnings per share: | | | | | | | | | | | | | |
Basic | | | | $ | 1.71 | | | | | $ | 1.34 | | |
Diluted | | | | $ | 1.69 | | | | | $ | 1.32 | | |
Cash dividend declared per common share | | | | $ | 0.38 | | | | | $ | 0.20 | | |
| | | 2018 | | | 2017 | | ||||||
Net income | | | | $ | 41,334 | | | | | $ | 31,897 | | |
Other comprehensive income (loss): | | | | | | | | | | | | | |
Unrealized holding (losses) on securities available for sale arising during the period | | | | | (46) | | | | | | (10) | | |
Tax effect | | | | | (3) | | | | | | 3 | | |
Other comprehensive loss | | | | | (49) | | | | | | (7) | | |
Comprehensive income | | | | $ | 41,285 | | | | | $ | 31,890 | | |
| | | Common Stock(1) | | | Additional Paid-in Capital(1) | | | Retained Earnings | | | Accumulated Other Comprehensive Income (Loss) | | | Total | | |||||||||||||||||||||
| Number of Shares | | | Amount | | ||||||||||||||||||||||||||||||||
Balance, January 1, 2017 | | | | | 23,642,510 | | | | | $ | 236 | | | | | $ | 37,019 | | | | | $ | 70,067 | | | | | $ | (61) | | | | | $ | 107,261 | | |
Stock based compensation expense | | | | | — | | | | | | — | | | | | | 718 | | | | | | — | | | | | | — | | | | | | 718 | | |
Vesting of restricted stock | | | | | 172,372 | | | | | | 2 | | | | | | (2) | | | | | | — | | | | | | — | | | | | | — | | |
Stock option exercise | | | | | 260,000 | | | | | | 2 | | | | | | 683 | | | | | | — | | | | | | — | | | | | | 685 | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 31,897 | | | | | | — | | | | | | 31,897 | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (7) | | | | | | (7) | | |
Dividends on common stock | | | | | — | | | | | | — | | | | | | — | | | | | | (5,439) | | | | | | — | | | | | | (5,439) | | |
Balance, December 31, 2017 | | | | | 24,074,882 | | | | | | 240 | | | | | | 38,418 | | | | | | 96,525 | | | | | | (68) | | | | | | 135,115 | | |
Stock based compensation expense | | | | | — | | | | | | — | | | | | | 1,499 | | | | | | — | | | | | | — | | | | | | 1,499 | | |
Vesting of restricted stock | | | | | 183,180 | | | | | | 2 | | | | | | (2) | | | | | | — | | | | | | — | | | | | | — | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 41,334 | | | | | | — | | | | | | 41,334 | | |
Impact of adoption of new accounting standard(2) | | | | | — | | | | | | — | | | | | | — | | | | | | (13) | | | | | | 13 | | | | | | — | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (49) | | | | | | (49) | | |
Dividends on common stock | | | | | — | | | | | | — | | | | | | — | | | | | | (9,291) | | | | | | — | | | | | | (9,291) | | |
Balance, December 31, 2018 | | | | | 24,258,062 | | | | | $ | 242 | | | | | $ | 39,915 | | | | | $ | 128,555 | | | | | $ | (104) | | | | | $ | 168,608 | | |
| | | 2018 | | | 2017 | | ||||||
Cash flow from operating activities: | | | | | | | | | | | | | |
Net income | | | | $ | 41,334 | | | | | $ | 31,897 | | |
Adjustments to reconcile net income to net cash (used) provided by operating activities: | | | | | | | | | | | | | |
Depreciation, amortization and accretion | | | | | 899 | | | | | | 593 | | |
Provision for loan losses | | | | | 1,237 | | | | | | 3,058 | | |
Stock based compensation expense | | | | | 1,499 | | | | | | 718 | | |
Write-down of abandoned leasehold improvements | | | | | — | | | | | | 289 | | |
Gain on sale of foreclosed real estate | | | | | 36 | | | | | | 8 | | |
Deferred income tax expense | | | | | 355 | | | | | | 42 | | |
Origination of residential real estate loans held for sale | | | | | (716,140) | | | | | | (235,119) | | |
Proceeds from sale of residential real estate loans | | | | | 541,690 | | | | | | 365,044 | | |
Gain on sale of residential mortgages | | | | | (5,679) | | | | | | (3,035) | | |
Origination of SBA loans held for sale | | | | | (121,009) | | | | | | (85,932) | | |
Proceeds from sales of SBA loans held for sale | | | | | 97,957 | | | | | | 92,278 | | |
Gain on sale of SBA loans | | | | | (4,616) | | | | | | (6,347) | | |
Increase in cash surrender value of bank owned life insurance | | | | | (478) | | | | | | (510) | | |
Increase in accrued interest receivable | | | | | (201) | | | | | | (988) | | |
Decrease (increase) in SBA servicing rights | | | | | 920 | | | | | | (512) | | |
Increase in mortgage servicing rights | | | | | (8,091) | | | | | | (6,843) | | |
Decrease (increase) in other assets | | | | | 2,644 | | | | | | (3,687) | | |
Increase in accrued interest payable | | | | | 850 | | | | | | 45 | | |
Increase in other liabilities | | | | | 5,874 | | | | | | 813 | | |
Net cash flow (used) provided by operating activities | | | | | (160,919) | | | | | | 151,812 | | |
Cash flow from investing activities: | | | | | | | | | | | | | |
Decrease (increase) in loans, net | | | | | 104,354 | | | | | | (263,086) | | |
Proceeds from sales, calls or paydowns of securities available for sale | | | | | 2,075 | | | | | | 8,040 | | |
Purchase of securities under resell agreements | | | | | — | | | | | | (15,000) | | |
Purchase of securities available for sale | | | | | — | | | | | | (1,250) | | |
Sale (purchase) of Federal Home Loan Bank stock | | | | | 4,929 | | | | | | (867) | | |
Purchases of premises and equipment | | | | | (2,855) | | | | | | (5,912) | | |
Proceeds from sales of foreclosed real estate owned | | | | | 835 | | | | | | 133 | | |
Net cash flow provided (used) by investing activities | | | | | 109,338 | | | | | | (277,942) | | |
Cash flow from financing activities: | | | | | | | | | | | | | |
Dividends paid – common stock | | | | | (9,291) | | | | | | (5,401) | | |
Exercise of stock options | | | | | — | | | | | | 685 | | |
Increase in deposits, net | | | | | 224,248 | | | | | | 149,117 | | |
Decrease in other borrowings, net | | | | | (782) | | | | | | (302) | | |
Repayments of Federal Home Loan Bank advances | | | | | (120,000) | | | | | | (488,700) | | |
Federal Home Loan Bank advances | | | | | — | | | | | | 500,000 | | |
Net cash flow provided by financing activities | | | | | 94,175 | | | | | | 155,399 | | |
Net change in cash and cash equivalents | | | | | 42,594 | | | | | | 29,269 | | |
Cash and cash equivalents at beginning of year | | | | | 95,833 | | | | | | 66,564 | | |
Cash and cash equivalents at end of year | | | | $ | 138,427 | | | | | $ | 95,833 | | |
Supplemental schedule of noncash investing and financing activities: | | | | | | | | | | | | | |
Transfer of loan principal and accrued interest to foreclosed real estate, net of write-downs | | | | $ | 261 | | | | | $ | 387 | | |
Supplemental disclosures of cash flow information – | | | | ||||||||||
Cash paid during the year for: | | | | ||||||||||
Interest | | | | $ | 13,825 | | | | | $ | 8,575 | | |
Income taxes | | | | $ | 10,400 | | | | | $ | 20,087 | | |
Asset Type | | | Useful Life | |
Building | | | 40 years | |
Leasehold improvements | | | 3 – 20 years | |
Furniture, fixtures, and equipment | | | 5 – 7 years | |
Computer equipment | | | 4 – 5 years | |
Computer software | | | 3 years | |
| | | December 31, 2018 | | |||||||||||||||||||||
(Dollars in thousands) | | | Gross Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Estimated Fair Value | | ||||||||||||
Obligations of U.S. Government entities and agencies | | | | $ | 15,183 | | | | | $ | — | | | | | $ | — | | | | | $ | 15,183 | | |
States and political subdivisions | | | | | 1,248 | | | | | | — | | | | | | (35) | | | | | | 1,213 | | |
Mortgage-backed GSE residential | | | | | 2,607 | | | | | | — | | | | | �� | (115) | | | | | | 2,492 | | |
Total | | | | $ | 19,038 | | | | | $ | — | | | | | $ | (150) | | | | | $ | 18,888 | | |
|
| | | December 31, 2017 | | |||||||||||||||||||||
(Dollars in thousands) | | | Gross Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Estimated Fair Value | | ||||||||||||
Obligations of U.S. Government entities and agencies | | | | $ | 16,661 | | | | | $ | — | | | | | $ | — | | | | | $ | 16,661 | | |
States and political subdivisions | | | | | 1,249 | | | | | | — | | | | | | (14) | | | | | | 1,235 | | |
Mortgage-backed GSE residential | | | | | 3,245 | | | | | | — | | | | | | (90) | | | | | | 3,155 | | |
Total | | | | $ | 21,155 | | | | | $ | — | | | | | $ | (104) | | | | | $ | 21,051 | | |
| | | Securities Available for Sale | | |||||||||
(Dollars in thousands) | | | Amortized Cost | | | Estimated Fair Value | | ||||||
Due in one year or less | | | | $ | 616 | | | | | $ | 615 | | |
Due after one year but less than five years | | | | | 2,893 | | | | | | 2,881 | | |
Due after five years but less than ten years | | | | | 4,673 | | | | | | 4,651 | | |
Due in more than ten years | | | | | 8,249 | | | | | | 8,249 | | |
Mortgage-backed GSE residential | | | | | 2,607 | | | | | | 2,492 | | |
Total | | | | $ | 19,038 | | | | | $ | 18,888 | | |
| | | December 31, 2018 | | |||||||||||||||||||||
| | | Twelve Months or Less | | | Over Twelve Months | | ||||||||||||||||||
(Dollars in thousands) | | | Gross Unrealized Losses | | | Estimated Fair Value | | | Gross Unrealized Losses | | | Estimated Fair Value | | ||||||||||||
States and political subdivisions | | | | $ | (35) | | | | | $ | 1,213 | | | | | $ | — | | | | | $ | — | | |
Mortgage-backed GSE residential | | | | | — | | | | | | — | | | | | | (115) | | | | | | 2,492 | | |
Total | | | | $ | (35) | | | | | $ | 1,213 | | | | | $ | (115) | | | | | $ | 2,492 | | |
|
| | | December 31, 2017 | | |||||||||||||||||||||
| | | Twelve Months or Less | | | Over Twelve Months | | ||||||||||||||||||
(Dollars in thousands) | | | Gross Unrealized Losses | | | Estimated Fair Value | | | Gross Unrealized Losses | | | Estimated Fair Value | | ||||||||||||
States and political subdivisions | | | | $ | (14) | | | | | $ | 846 | | | | | $ | — | | | | | $ | — | | |
Mortgage-backed GSE residential | | | | | — | | | | | | — | | | | | | (90) | | | | | | 3,149 | | |
Total | | | | $ | (14) | | | | | $ | 846 | | | | | $ | (90) | | | | | $ | 3,149 | | |
| | | December 31, | | |||||||||
(Dollars in thousands) | | | 2018 | | | 2017 | | ||||||
Construction and development | | | | $ | 42,718 | | | | | $ | 45,132 | | |
Commercial real estate | | | | | 396,598 | | | | | | 369,346 | | |
Commercial and industrial | | | | | 33,100 | | | | | | 33,671 | | |
Consumer | | | | | 2,804 | | | | | | 8,934 | | |
Residential real estate | | | | | 670,341 | | | | | | 611,258 | | |
Other | | | | | 153 | | | | | | 252 | | |
Gross loans | | | | | 1,145,714 | | | | | | 1,068,593 | | |
Unearned income | | | | | (2,139) | | | | | | (1,620) | | |
Allowance for loan losses | | | | | (6,645) | | | | | | (6,925) | | |
Loans, net | | | | $ | 1,136,930 | | | | | $ | 1,060,048 | | |
(Dollars in thousands) | | | Construction and Development | | | Commercial Real Estate | | | Commercial and Industrial | | | Consumer | | | Residential Real Estate | | | Other | | | Unallocated | | | Total | | ||||||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 127 | | | | | $ | 2,135 | | | | | $ | 261 | | | | | $ | 1,167 | | | | | $ | 3,048 | | | | | $ | 3 | | | | | $ | 184 | | | | | $ | 6,925 | | |
Charge-offs | | | | | — | | | | | | (88) | | | | | | (39) | | | | | | (1,939) | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,066) | | |
Recoveries | | | | | — | | | | | | 22 | | | | | | — | | | | | | 527 | | | | | | — | | | | | | — | | | | | | — | | | | | | 549 | | |
Provision | | | | | 108 | | | | | | 532 | | | | | | 158 | | | | | | 632 | | | | | | (6) | | | | | | (3) | | | | | | (184) | | | | | | 1,237 | | |
Ending balance | | | | $ | 235 | | | | | $ | 2,601 | | | | | $ | 380 | | | | | $ | 387 | | | | | $ | 3,042 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,645 | | |
Ending balance – individually evaluated for impairment | | | | $ | 117 | | | | | $ | 872 | | | | | $ | 110 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1,099 | | |
Ending balance – collectively evaluated for impairment | | | | $ | 118 | | | | | $ | 1,729 | | | | | $ | 270 | | | | | $ | 3 | | | | | $ | 3,042 | | | | | $ | — | | | | | $ | — | | | | | $ | 5,162 | | |
Ending balance – acquired with deteriorated credit quality | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 384 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 384 | | |
Loans, net of fees: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance – individually evaluated for impairment | | | | $ | 1,360 | | | | | $ | 8,074 | | | | | $ | 986 | | | | | $ | — | | | | | $ | 1,722 | | | | | $ | — | | | | | $ | — | | | | | $ | 12,142 | | |
Ending balance – collectively evaluated for impairment | | | | $ | 40,928 | | | | | $ | 386,889 | | | | | $ | 32,040 | | | | | $ | 163 | | | | | $ | 668,619 | | | | | $ | 153 | | | | | $ | — | | | | | $ | 1,128,792 | | |
Ending balance – acquired with deteriorated credit quality | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 2,641 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 2,641 | | |
Ending balance | | | | $ | 42,288 | | | | | $ | 394,963 | | | | | $ | 33,026 | | | | | $ | 2,804 | | | | | $ | 670,341 | | | | | $ | 153 | | | | | $ | — | | | | | $ | 1,143,575 | | |
|
(Dollars in thousands) | | | Construction and Development | | | Commercial Real Estate | | | Commercial and Industrial | | | Consumer | | | Residential Real Estate | | | Other | | | Unallocated | | | Total | | ||||||||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 116 | | | | | $ | 2,854 | | | | | $ | 257 | | | | | $ | 4 | | | | | $ | 1,656 | | | | | $ | 1 | | | | | $ | 582 | | | | | $ | 5,470 | | |
Charge-offs | | | | | — | | | | | | (131) | | | | | | — | | | | | | (1,513) | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,644) | | |
Recoveries | | | | | — | | | | | | 41 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 41 | | |
Provision | | | | | 11 | | | | | | (629) | | | | | | 4 | | | | | | 2,676 | | | | | | 1,392 | | | | | | 2 | | | | | | (398) | | | | | | 3,058 | | |
Ending balance | | | | $ | 127 | | | | | $ | 2,135 | | | | | $ | 261 | | | | | $ | 1,167 | | | | | $ | 3,048 | | | | | $ | 3 | | | | | $ | 184 | | | | | $ | 6,925 | | |
Ending balance – individually evaluated for impairment | | | | $ | — | | | | | $ | 271 | | | | | $ | 173 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 444 | | |
Ending balance – collectively evaluated for impairment | | | | $ | 127 | | | | | $ | 1,864 | | | | | $ | 88 | | | | | $ | — | | | | | $ | 3,048 | | | | | $ | 3 | | | | | $ | 184 | | | | | $ | 5,314 | | |
Ending balance – acquired with deteriorated credit quality | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1,167 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1,167 | | |
Loans, net of fees: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance – individually evaluated for impairment | | | | $ | 2,484 | | | | | $ | 5,562 | | | | | $ | 918 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 8,964 | | |
Ending balance – collectively evaluated for impairment | | | | $ | 42,322 | | | | | $ | 362,550 | | | | | $ | 32,693 | | | | | $ | 238 | | | | | $ | 611,258 | | | | | $ | 252 | | | | | $ | — | | | | | | 1,049,313 | | |
Ending balance – acquired with deteriorated credit quality | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 8,696 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 8,696 | | |
Ending balance | | | | $ | 44,806 | | | | | $ | 368,112 | | | | | $ | 33,611 | | | | | $ | 8,934 | | | | | $ | 611,258 | | | | | $ | 252 | | | | | $ | — | | | | | $ | 1,066,973 | | |
(Dollars in thousands) December 31, 2018 | | | Unpaid Total Principal Balance | | | Recorded Investment With No Allowance | | | Recorded Investment With Allowance | | | Total Recorded Investment | | | Related Allowance | | | Average Recorded Investment | | ||||||||||||||||||
Construction and development | | | | $ | 1,360 | | | | | $ | — | | | | | $ | 1,360 | | | | | $ | 1,360 | | | | | $ | 117 | | | | | $ | 1,922 | | |
Commercial real estate | | | | | 8,144 | | | | | | 5,312 | | | | | | 2,967 | | | | | | 8,279 | | | | | | 872 | | | | | | 7,474 | | |
Commercial and industrial | | | | | 986 | | | | | | 302 | | | | | | 684 | | | | | | 986 | | | | | | 110 | | | | | | 1,165 | | |
Residential real estate | | | | | 1,722 | | | | | | 1,722 | | | | | | — | | | | | | 1,722 | | | | | | — | | | | | | 1,705 | | |
Total | | | | $ | 12,212 | | | | | $ | 7,336 | | | | | $ | 5,011 | | | | | $ | 12,347 | | | | | $ | 1,099 | | | | | $ | 12,266 | | |
|
(Dollars in thousands) December 31, 2017 | | | Unpaid Total Principal Balance | | | Recorded Investment With No Allowance | | | Recorded Investment With Allowance | | | Total Recorded Investment | | | Related Allowance | | | Average Recorded Investment | | ||||||||||||||||||
Construction and development | | | | $ | 2,484 | | | | | $ | 2,484 | | | | | $ | — | | | | | $ | 2,484 | | | | | $ | — | | | | | $ | 2,610 | | |
Commercial real estate | | | | | 5,619 | | | | | | 2,907 | | | | | | 2,959 | | | | | | 5,866 | | | | | | 271 | | | | | | 6,972 | | |
Commercial and industrial | | | | | 918 | | | | | | 76 | | | | | | 957 | | | | | | 1,033 | | | | | | 173 | | | | | | 900 | | |
Total | | | | $ | 9,021 | | | | | $ | 5,467 | | | | | $ | 3,916 | | | | | $ | 9,383 | | | | | $ | 444 | | | | | $ | 10,482 | | |
|
(Dollars in thousands) December 31, 2018 | | | Current | | | 30 – 89 Days | | | Accruing Greater than 89 Days | | | Total Accruing Past Due | | | Non-accrual | | | Total Financing Receivables | | ||||||||||||||||||
Construction and development | | | | $ | 42,288 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 42,288 | | |
Commercial real estate | | | | | 390,601 | | | | | | 1,102 | | | | | | — | | | | | | 1,102 | | | | | | 3,260 | | | | | | 394,963 | | |
Commercial and industrial | | | | | 32,315 | | | | | | 26 | | | | | | — | | | | | | 26 | | | | | | 685 | | | | | | 33,026 | | |
Consumer | | | | | 2,804 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,804 | | |
Residential real estate | | | | | 651,439 | | | | | | 17,180 | | | | | | — | | | | | | 17,180 | | | | | | 1,722 | | | | | | 670,341 | | |
Other | | | | | 153 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 153 | | |
Total | | | | $ | 1,119,600 | | | | | $ | 18,308 | | | | | $ | — | | | | | $ | 18,308 | | | | | $ | 5,667 | | | | | $ | 1,143,575 | | |
|
(Dollars in thousands) December 31, 2017 | | | Current | | | 30 – 89 Days | | | Accruing Greater than 89 Days | | | Total Accruing Past Due | | | Non-accrual | | | Total Financing Receivables | | ||||||||||||||||||
Construction and development | | | | $ | 42,322 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 2,484 | | | | | $ | 44,806 | | |
Commercial real estate | | | | | 363,356 | | | | | | 2,880 | | | | | | — | | | | | | 2,880 | | | | | | 1,876 | | | | | | 368,112 | | |
Commercial and industrial | | | | | 32,655 | | | | | | 95 | | | | | | — | | | | | | 95 | | | | | | 861 | | | | | | 33,611 | | |
Consumer | | | | | 7,896 | | | | | | 1,038 | | | | | | — | | | | | | 1,038 | | | | | | — | | | | | | 8,934 | | |
Residential real estate | | | | | 597,718 | | | | | | 11,678 | | | | | | — | | | | | | 11,678 | | | | | | 1,862 | | | | | | 611,258 | | |
Other | | | | | 252 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 252 | | |
Total | | | | $ | 1,044,199 | | | | | $ | 15,691 | | | | | $ | — | | | | | $ | 15,691 | | | | | $ | 7,083 | | | | | $ | 1,066,973 | | |
(Dollars in thousands) December 31, 2018 | | | Construction and Development | | | Commercial Real Estate | | | Commercial and Industrial | | | Consumer | | | Residential Real Estate | | | Other | | | Total | | |||||||||||||||||||||
Rating: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | | | $ | 40,928 | | | | | $ | 383,857 | | | | | $ | 32,040 | | | | | $ | 2,804 | | | | | $ | 667,249 | | | | | $ | 153 | | | | | $ | 1,127,031 | | |
Special Mention | | | | | — | | | | | | 5,112 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,112 | | |
Substandard | | | | | 1,360 | | | | | | 5,994 | | | | | | 986 | | | | | | — | | | | | | 3,092 | | | | | | — | | | | | | 11,432 | | |
Doubtful | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 42,288 | | | | | $ | 394,963 | | | | | $ | 33,026 | | | | | $ | 2,804 | | | | | $ | 670,341 | | | | | $ | 153 | | | | | $ | 1,143,575 | | |
|
(Dollars in thousands) December 31, 2017 | | | Construction and Development | | | Commercial Real Estate | | | Commercial and Industrial | | | Consumer | | | Residential Real Estate | | | Other | | | Total | | |||||||||||||||||||||
Rating: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | | | $ | 42,322 | | | | | $ | 359,632 | | | | | $ | 32,693 | | | | | $ | 8,934 | | | | | $ | 611,258 | | | | | $ | 252 | | | | | $ | 1,055,091 | | |
Special Mention | | | | | — | | | | | | 5,119 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,119 | | |
Substandard | | | | | 2,484 | | | | | | 3,361 | | | | | | 918 | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,763 | | |
Doubtful | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 44,806 | | | | | $ | 368,112 | | | | | $ | 33,611 | | | | | $ | 8,934 | | | | | $ | 611,258 | | | | | $ | 252 | | | | | $ | 1,066,973 | | |
(Dollars in thousands) Type of Concession | | | December 31, 2018 | | | December 31, 2017 | | ||||||
Extension of maturity date | | | | $ | 3,311 | | | | | $ | 2,967 | | |
| | | December 31, 2018 | | | December 31, 2017 | | ||||||||||||||||||
(Dollars in thousands) Type | | | Number of Loans | | | Recorded Investment | | | Number of Loans | | | Recorded Investment | | ||||||||||||
Commercial real estate | | | | | 6 | | | | | $ | 3,527 | | | | | | 6 | | | | | $ | 2,960 | | |
Commercial and industrial | | | | | 1 | | | | | | 116 | | | | | | 1 | | | | | | 108 | | |
Total | | | | | 7 | | | | | $ | 3,643 | | | | | | 7 | | | | | $ | 3,068 | | |
(Dollars in thousands) | | | December 31, 2018 | | | December 31, 2017 | | ||||||
Land | | | | $ | 2,604 | | | | | $ | 2,604 | | |
Building | | | | | 7,691 | | | | | | 7,058 | | |
Leasehold improvements | | | | | 2,849 | | | | | | 2,264 | | |
Furniture, fixtures and equipment | | | | | 3,306 | | | | | | 2,695 | | |
Computer equipment | | | | | 1,413 | | | | | | 1,146 | | |
Computer software | | | | | 371 | | | | | | 326 | | |
Construction in process | | | | | 725 | | | | | | 67 | | |
| | | | | 18,959 | | | | | | 16,160 | | |
Accumulated depreciation | | | | | (4,568) | | | | | | (3,776) | | |
Total premises and equipment, net | | | | $ | 14,391 | | | | | $ | 12,384 | | |
Year ending December 31, (Dollars in thousands) | | | | | | | |
2019 | | | | $ | 1,642 | | |
2020 | | | | | 1,602 | | |
2021 | | | | | 1,550 | | |
2022 | | | | | 1,326 | | |
2023 | | | | | 971 | | |
Thereafter | | | | | 3,162 | | |
Total minimum lease payments | | | | $ | 10,253 | | |
(Dollars in thousands) | | | 2018 | | | 2017 | | ||||||
Non-interest bearing demand deposits | | | | $ | 299,182 | | | | | $ | 260,251 | | |
Interest-bearing deposits | | | | | 121,261 | | | | | | 119,446 | | |
Brokered time deposits | | | | | 53,477 | | | | | | 73,477 | | |
Time deposits | | | | | 770,312 | | | | | | 566,810 | | |
Total deposits | | | | $ | 1,244,232 | | | | | $ | 1,019,984 | | |
Year Ending December 31, (Dollars in thousands) | | | |||||
2019 | | | | $ | 807,025 | | |
2020 | | | | | 11,324 | | |
2021 | | | | | 2,269 | | |
2022 | | | | | 2,575 | | |
2023 | | | | | 596 | | |
Total | | | | $ | 823,789 | | |
| (Dollars in thousands) Interest Rate | | | Rate Type | | | Maturity Date | | | December 31, 2018 | | | December 31, 2017 | | ||||||
| 1.29% | | | Fixed Rate | | | January 29, 2018 | | | | $ | — | | | | | $ | 20,000 | | |
| 1.53% | | | Fixed Rate | | | March 26, 2018 | | | | | — | | | | | | 100,000 | | |
| | | | | | | Total | | | | $ | — | | | | | $ | 120,000 | | |
(Dollars in thousands) | | | 2018 | | | 2017 | | ||||||
Currently payable | | | | | | | | | | | | | |
Federal | | | | $ | 12,210 | | | | | $ | 15,781 | | |
State | | | | | 2,102 | | | | | | 2,506 | | |
| | | | | 14,312 | | | | | | 18,287 | | |
Deferred income taxes | | | | | 355 | | | | | | 42 | | |
Benefit due to tax reform | | | | | — | | | | | | (176) | | |
| | | | $ | 14,667 | | | | | $ | 18,153 | | |
(Dollars in thousands) | | | 2018 | | | 2017 | | ||||||
Federal statutory rate times financial statement income | | | | $ | 11,775 | | | | | $ | 17,517 | | |
Difference resulting from: | | | | | | | | | | | | | |
State taxes, net of federal benefit | | | | | 1,660 | | | | | | 1,139 | | |
Deferred tax liability writedown | | | | | — | | | | | | (176) | | |
Other items, net | | | | | 1,232 | | | | | | (327) | | |
Provision for income taxes | | | | $ | 14,667 | | | | | $ | 18,153 | | |
(Dollars in thousands) | | | 2018 | | | 2017 | | ||||||
Deferred income tax assets (liabilities) | | | | | | | | | | | | | |
Allowance for loan losses | | | | $ | 1,692 | | | | | $ | 1,764 | | |
Nonaccrual loan interest | | | | | 175 | | | | | | 32 | | |
Other | | | | | (16) | | | | | | (43) | | |
Unrealized gain on securities available for sale | | | | | 46 | | | | | | 36 | | |
Deferred mortgage servicing fees | | | | | (1,389) | | | | | | (873) | | |
Deferred SBA servicing fees | | | | | (2,069) | | | | | | (2,300) | | |
Premises and equipment | | | | | (368) | | | | | | (258) | | |
Deferred loan fees | | | | | — | | | | | | 58 | | |
Net deferred tax liabilities | | | | $ | (1,929) | | | | | $ | (1,584) | | |
(Dollars in thousands) | | | |||||
Balance, beginning | | | | $ | 5,970 | | |
New loans and principal advances | | | | | 54 | | |
Repayments | | | | | (484) | | |
Balance, ending | | | | $ | 5,540 | | |
(Dollars in thousands) | | | 2018 | | | 2017 | | ||||||
SBA Loan Servicing Rights | | | | | | | | | | | | | |
Beginning of year | | | | $ | 9,329 | | | | | $ | 8,823 | | |
Additions | | | | | 350 | | | | | | 527 | | |
Disposals | | | | | (1,260) | | | | | | (21) | | |
End of year, fair value | | | | $ | 8,419 | | | | | $ | 9,329 | | |
|
(Dollars in thousands) | | | 2018 | | | 2017 | | ||||||
Residential Mortgage Loan Servicing Rights | | | | | | | | | | | | | |
Beginning of year | | | | $ | 6,843 | | | | | $ | — | | |
Additions | | | | | 10,253 | | | | | | 7,500 | | |
Disposals | | | | | — | | | | | | — | | |
Amortization expense | | | | | (2,162) | | | | | | (657) | | |
End of year, carrying value | | | | $ | 14,934 | | | | | $ | 6,843 | | |
(Dollars in thousands) | | | 2018 | | | 2017 | | ||||||
Financial instruments whose contract amounts represent credit risk: | | | | | | | | | | | | | |
Commitments to extend credit | | | | $ | 65,283 | | | | | $ | 36,250 | | |
Standby letters of credit | | | | $ | 4,250 | | | | | $ | 4,249 | | |
| | | December 31, 2018 | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | | Total Gains (Losses) | | |||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Recurring fair value measurements: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Securities available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Obligations of U.S. Government entities and agencies | | | | $ | 15,183 | | | | | $ | — | | | | | $ | — | | | | | $ | 15,183 | | | | | | | | |
States and political subdivisions | | | | | 1,213 | | | | | | — | | | | | | 1,213 | | | | | | — | | | | | | | | |
Mortgage-backed GSE residential | | | | | 2,492 | | | | | | — | | | | | | 2,492 | | | | | | — | | | | | | | | |
Total securities available for sale | | | | | 18,888 | | | | | | — | | | | | | 3,705 | | | | | | 15,183 | | | | | | | | |
SBA servicing asset | | | | | 8,419 | | | | | | — | | | | | | — | | | | | | 8,419 | | | | | | | | |
Interest only strip | | | | | 27 | | | | | | — | | | | | | — | | | | | | 27 | | | | | | | | |
| | | | $ | 27,334 | | | | | $ | — | | | | | $ | 3,705 | | | | | $ | 23,629 | | | | | | | | |
Non-recurring fair value measurements: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired loans | | | | $ | 3,472 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,472 | | | | | $ | 169 | | |
Total nonrecurring fair value measurements | | | | $ | 3,472 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,472 | | | | | $ | 169 | | |
|
| | | December 31, 2017 | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | | Total Gains (Losses) | | |||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Recurring fair value measurements: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Securities available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Obligations of U.S. Government entities and agencies | | | | $ | 16,661 | | | | | $ | — | | | | | $ | — | | | | | $ | 16,661 | | | | | | | | |
States and political subdivisions | | | | | 1,235 | | | | | | — | | | | | | 1,235 | | | | | | — | | | | | | | | |
Mortgage-backed GSE residential | | | | | 3,155 | | | | | | — | | | | | | 3,155 | | | | | | — | | | | | | | | |
Total securities available for sale | | | | | 21,051 | | | | | | — | | | | | | 4,390 | | | | | | 16,661 | | | | | | | | |
SBA servicing asset | | | | | 9,329 | | | | | | — | | | | | | — | | | | | | 9,329 | | | | | | | | |
Interest only strip | | | | | 36 | | | | | | — | | | | | | — | | | | | | 36 | | | | | | | | |
| | | | $ | 30,416 | | | | | $ | — | | | | | $ | 4,390 | | | | | $ | 26,026 | | | | | | | | |
Non-recurring fair value measurements: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired loans | | | | $ | 2,966 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,966 | | | | | $ | — | | |
Total nonrecurring fair value measurements | | | | $ | 2,966 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,966 | | | | | $ | — | | |
|
(Dollars in thousands) | | | Obligations of U.S. Government Entities and Agencies | | | SBA Servicing Asset | | | Interest Only Strip | | | Liabilities | | ||||||||||||
Fair value, January 1, 2018 | | | | $ | 16,661 | | | | | $ | 9,329 | | | | | $ | 36 | | | | | $ | — | | |
Total gain included in income | | | | | — | | | | | | 891 | | | | | | (9) | | | | | | — | | |
Settlements | | | | | — | | | | | | (350) | | | | | | — | | | | | | — | | |
Prepayments/paydowns | | | | | (1,478) | | | | | | (1,451) | | | | | | — | | | | | | — | | |
Transfers in and/or out of level 3 | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Fair value, December 31, 2018 | | | | $ | 15,183 | | | | | $ | 8,419 | | | | | $ | 27 | | | | | $ | — | | |
|
(Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | |
Fair value, January 1, 2017 | | | | $ | 23,916 | | | | | $ | 8,823 | | | | | $ | 30 | | | | | $ | — | | |
Total gain included in income | | | | | — | | | | | | 593 | | | | | | 6 | | | | | | — | | |
Settlements | | | | | — | | | | | | (87) | | | | | | — | | | | | | — | | |
Prepayments/paydowns | | | | | (7,255) | | | | | | — | | | | | | — | | | | | | — | | |
Transfers in and/or out of level 3 | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Fair value, December 31, 2017 | | | | $ | 16,661 | | | | | $ | 9,329 | | | | | $ | 36 | | | | | $ | — | | |
| | | | Valuation Technique | | | Unobservable Input | | | General Range | |
| December 31, 2018 | | | | | | | | | | |
| Obligations of U.S. Government entities and agencies | | | Discounted Cash Flows | | | Discount rate | | | 0% – 3% | |
| SBA servicing asset and interest only strip | | | Discounted Cash Flows | | | Prepayment speed | | | 6.82% – 12.87% | |
| | | | | | | Discount rate | | | 8.78% – 14.56% | |
| | | | Valuation Technique | | | Unobservable Input | | | General Range | |
| December 31, 2017 | | | | | | | | | | |
| Obligations of U.S. Government entities and agencies | | | Discounted Cash Flows | | | Discount rate | | | 0% – 3% | |
| SBA servicing asset and interest only strip | | | Discounted Cash Flows | | | Prepayment speed | | | 6.39% – 8.92% | |
| | | | | | | Discount rate | | | 9.51% – 13.42% | |
| | | Carrying Amount | | | Estimated Fair Value at December 31, 2018 | | ||||||||||||||||||||||||
(Dollars in thousands) | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | ||||||||||||||||||
Financial Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash, due from banks, federal funds sold and money market investments | | | | $ | 138,427 | | | | | $ | — | | | | | $ | 138,427 | | | | | $ | — | | | | | $ | 138,427 | | |
Securities purchased under agreements to resell | | | | | 15,000 | | | | | | — | | | | | | 15,000 | | | | | | — | | | | | | 15,000 | | |
Investment securities | | | | | 18,888 | | | | | | — | | | | | | 3,705 | | | | | | 15,183 | | | | | | 18,888 | | |
FHLB stock | | | | | 1,163 | | | | | | — | | | | | | — | | | | | | — | | | | | | N/A | | |
Loans, net | | | | | 1,136,930 | | | | | | — | | | | | | — | | | | | | 1,166,945 | | | | | | 1,166,945 | | |
Loans held for sale | | | | | 56,865 | | | | | | — | | | | | | 56,865 | | | | | | — | | | | | | 56,865 | | |
Accrued interest receivable | | | | | 4,957 | | | | | | — | | | | | | — | | | | | | 4,957 | | | | | | 4,957 | | |
SBA servicing assets | | | | | 8,419 | | | | | | — | | | | | | — | | | | | | 8,419 | | | | | | 8,419 | | |
Mortgage servicing assets | | | | | 14,934 | | | | | | — | | | | | | — | | | | | | 16,460 | | | | | | 16,460 | | |
Bank owned life insurance | | | | | 19,749 | | | | | | — | | | | | | — | | | | | | 19,749 | | | | | | 19,749 | | |
Interest only strips | | | | | 27 | | | | | | — | | | | | | — | | | | | | 27 | | | | | | 27 | | |
Financial Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | | 1,244,232 | | | | | | — | | | | | | 1,242,863 | | | | | | — | | | | | | 1,242,863 | | |
Other borrowings | | | | | 4,257 | | | | | | — | | | | | | 4,257 | | | | | | — | | | | | | 4,257 | | |
Accrued interest payable | | | | | 1,251 | | | | | | — | | | | | | 1,251 | | | | | | — | | | | | | 1,251 | | |
| | | Carrying Amount | | | Estimated Fair Value at December 31, 2017 | | ||||||||||||||||||||||||
(Dollars in thousands) | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | ||||||||||||||||||
Financial Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash, due from banks, federal funds sold and money market investments | | | | $ | 95,833 | | | | | $ | — | | | | | $ | 95,833 | | | | | $ | — | | | | | $ | 95,833 | | |
Securities purchased under agreements to resell | | | | | 15,000 | | | | | | — | | | | | | 15,000 | | | | | | — | | | | | | 15,000 | | |
Investment securities | | | | | 21,051 | | | | | | — | | | | | | 4,390 | | | | | | 16,661 | | | | | | 21,051 | | |
FHLB stock | | | | | 6,092 | | | | | | — | | | | | | — | | | | | | — | | | | | | N/A | | |
Loans, net | | | | | 1,060,048 | | | | | | — | | | | | | — | | | | | | 1,058,900 | | | | | | 1,058,900 | | |
Accrued interest receivable | | | | | 4,756 | | | | | | — | | | | | | — | | | | | | 4,756 | | | | | | 4,756 | | |
SBA servicing asset | | | | | 8,823 | | | | | | — | | | | | | — | | | | | | 8,823 | | | | | | 8,823 | | |
Interest only strips | | | | | 36 | | | | | | — | | | | | | — | | | | | | 36 | | | | | | 36 | | |
Financial Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | | 1,019,984 | | | | | | — | | | | | | 1,019,672 | | | | | | — | | | | | | 1,019,672 | | |
FHLB Advances | | | | | 120,000 | | | | | | — | | | | | | 119,817 | | | | | | — | | | | | | 119,817 | | |
Other borrowings | | | | | 5,039 | | | | | | — | | | | | | 5,039 | | | | | | — | | | | | | 5,039 | | |
Accrued interest payable | | | | | 401 | | | | | | — | | | | | | 401 | | | | | | — | | | | | | 401 | | |
| | | Actual | | | For Capital Adequacy Purposes: | | | To Be Well Capitalized Under Prompt Corrective Action Provisions: | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Amount | | | Ratio | | | Amount ≥ | | | Ratio ≥ | | | Amount ≥ | | | Ratio ≥ | | ||||||||||||||||||
As of December 31, 2018: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Capital (to Risk Weighted Assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | $ | 166,851 | | | | | | 18.16% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 163,339 | | | | | | 17.80% | | | | | | 73,392 | | | | | | 8.0% | | | | | | 91,740 | | | | | | 10.0% | | |
Tier I Capital (to Risk Weighted Assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 160,207 | | | | | | 17.44% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 156,696 | | | | | | 17.08% | | | | | | 55,044 | | | | | | 6.0% | | | | | | 73,392 | | | | | | 8.0% | | |
Common Tier 1 (CET1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 160,207 | | | | | | 17.44% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 156,696 | | | | | | 17.08% | | | | | | 41,283 | | | | | | 4.5% | | | | | | 59,631 | | | | | | 6.5% | | |
Tier 1 Capital (to Average Assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 160,207 | | | | | | 11.14% | | | | | | N/A* | | | | | | N/A* | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 156,696 | | | | | | 10.91% | | | | | | 57,455 | | | | | | 4.0% | | | | | | 71,819 | | | | | | 5.0% | | |
| | | Actual | | | For Capital Adequacy Purposes: | | | To Be Well Capitalized Under Prompt Corrective Action Provisions: | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Amount | | | Ratio | | | Amount ≥ | | | Ratio ≥ | | | Amount ≥ | | | Ratio ≥ | | ||||||||||||||||||
As of December 31, 2017: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Capital (to Risk Weighted Assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | $ | 141,159 | | | | | | 17.08% | | | | | $ | 66,136 | | | | | | 8.0% | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 137,606 | | | | | | 16.65% | | | | | | 66,105 | | | | | | 8.0% | | | | | | 82,631 | | | | | | 10.0% | | |
Tier I Capital (to Risk Weighted Assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 134,234 | | | | | | 16.24% | | | | | | 49,602 | | | | | | 6.0% | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 130,681 | | | | | | 15.81% | | | | | | 49,579 | | | | | | 6.0% | | | | | | 66,105 | | | | | | 8.0% | | |
Common Tier 1 (CET1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 134,234 | | | | | | 16.24% | | | | | | 37,201 | | | | | | 4.5% | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 130,681 | | | | | | 15.81% | | | | | | 37,184 | | | | | | 4.5% | | | | | | 53,710 | | | | | | 6.5% | | |
Tier 1 Capital (to Average Assets) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated | | | | | 134,234 | | | | | | 10.76% | | | | | | 33,068 | | | | | | 4.0% | | | | | | N/A | | | | | | N/A | | |
Bank | | | | | 130,681 | | | | | | 10.47% | | | | | | 49,919 | | | | | | 4.0% | | | | | | 62,399 | | | | | | 5.0% | | |
| | | 2018 | | | 2017 | | ||||||||||||||||||
| | | Shares | | | Weighted Average Exercise Price | | | Shares | | | Weighted Average Exercise Price | | ||||||||||||
Outstanding at beginning of year | | | | | — | | | | | $ | — | | | | | | 260,000 | | | | | $ | 2.64 | | |
Granted | | | | | 240,000 | | | | | | 12.70 | | | | | | — | | | | | | — | | |
Exercised | | | | | — | | | | | | — | | | | | | (260,000) | | | | | | 2.64 | | |
Forfeited | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Outstanding at end of year | | | | | 240,000 | | | | | $ | 12.70 | | | | | | — | | | | | $ | — | | |
| | | 2018 | | | 2017 | | ||||||||||||||||||
Nonvested Shares | | | Shares | | | Weighted- Average Grant-Date Fair Value | | | Shares | | | Weighted- Average Grant-Date Fair Value | | ||||||||||||
Nonvested at January 1 | | | | | 280,310 | | | | | $ | 4.39 | | | | | | 251,428 | | | | | $ | 3.10 | | |
Granted | | | | | 181,072 | | | | | | 9.85 | | | | | | 203,254 | | | | | | 5.36 | | |
Vested | | | | | (183,180) | | | | | | 5.72 | | | | | | (174,372) | | | | | | 3.67 | | |
Forefited | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Nonvested at December 31 | | | | | 278,202 | | | | | $ | 7.07 | | | | | | 280,310 | | | | | $ | 4.39 | | |
(Dollars in thousands) | | | 2018 | | | 2017 | | ||||||
Professional fees | | | | $ | 1,029 | | | | | $ | 1,020 | | |
Miscellaneous loan related | | | | | 3,503 | | | | | | 3,079 | | |
Bank security | | | | | 1,003 | | | | | | 884 | | |
Phone and data service | | | | | 617 | | | | | | 498 | | |
Director fees | | | | | 333 | | | | | | 291 | | |
Other | | | | | 2,585 | | | | | | 2,658 | | |
Total other operating expenses | | | | $ | 9,070 | | | | | $ | 8,430 | | |
(Dollars in thousands) | | | 2018 | | | 2017 | | ||||||
Assets: | | | | | | | | | | | | | |
Cash and due from banks* | | | | $ | 375 | | | | | $ | 378 | | |
Interest-bearing deposits in other financial institutions | | | | | 2,225 | | | | | | 3,080 | | |
Investment in common stock of subsidiary stated on the basis of the Company’s equity in subsidiary’s capital accounts* | | | | | 165,096 | | | | | | 131,562 | | |
Other assets | | | | | 1,305 | | | | | | 381 | | |
Total assets | | | | $ | 169,001 | | | | | $ | 135,401 | | |
Liabilities – | | | | | | | | | | | | | |
Accrued expenses and other liabilities | | | | $ | 393 | | | | | $ | 286 | | |
Stockholders’ equity | | | | | 168,608 | | | | | | 135,115 | | |
Total liabilities and stockholders’ equity | | | | $ | 169,001 | | | | | $ | 135,401 | | |
(Dollars in thousands) | | | 2018 | | | 2017 | | ||||||
Dividends received from subsidiary* | | | | $ | 9,291 | | | | | $ | 5,438 | | |
Interest income* | | | | | 24 | | | | | | 25 | | |
| | | | | 9,315 | | | | | | 5,463 | | |
Other expense | | | | | 96 | | | | | | 35 | | |
Income before taxes and equity in undistributed income of subsidiary | | | | | 9,219 | | | | | | 5,428 | | |
Income tax benefit | | | | | 29 | | | | | | 24 | | |
Income before equity in undistributed income of subsidiary | | | | | 9,248 | | | | | | 5,452 | | |
Equity in undistributed income of subsidiary* | | | | | 32,086 | | | | | | 26,445 | | |
Net income | | | | | 41,334 | | | | | | 31,897 | | |
Other comprehensive loss: | | | | | (49) | | | | | | (7) | | |
Comprehensive income | | | | $ | 41,285 | | | | | $ | 31,890 | | |
(Dollars in thousands) | | | 2018 | | | 2017 | | ||||||
Cash flow from operating activities: | | | | | | | | | | | | | |
Net income | | | | $ | 41,334 | | | | | $ | 31,897 | | |
Adjustments to reconcile net income to net cash from operations: | | | | | | | | | | | | | |
Increase in other assets | | | | | (924) | | | | | | (135) | | |
(Increase) decrease in accrued expenses and other liabilities | | | | | 42 | | | | | | (68) | | |
Income from subsidiary | | | | | (32,086) | | | | | | (26,445) | | |
Net cash flow provided by operating activities | | | | | 8,366 | | | | | | 5,249 | | |
Cash flow from financing activities: | | | | | | | | | | | | | |
Dividends paid – common stock | | | | | (9,224) | | | | | | (5,401) | | |
Exercise of stock options | | | | | — | | | | | | 685 | | |
Net cash flow provided by financing activites | | | | | (9,224) | | | | | | (4,716) | | |
Net (decrease) increase in cash and cash equivalents | | | | | (858) | | | | | | 533 | | |
Cash and cash equivalents at beginning of year | | | | | 3,458 | | | | | | 2,925 | | |
Cash and cash equivalents at end of year | | | | $ | 2,600 | | | | | $ | 3,458 | | |
(Dollars in thousands except share data) | | | 2018 | | | 2017 | | ||||||
Basic | | | | | | | | | | | | | |
Net Income | | | | $ | 41,334 | | | | | $ | 31,897 | | |
Weighted average common shares outstanding | | | | | 24,184,790 | | | | | | 23,858,696 | | |
Less: Common stock equivalents | | | | | — | | | | | | — | | |
Average shares | | | | | 24,184,790 | | | | | | 23,858,696 | | |
Basic earnings per common share | | | | $ | 1.71 | | | | | $ | 1.34 | | |
Diluted | | | | | | | | | | | | | |
Net Income | | | | | 41,334 | | | | | | 31,897 | | |
Weighted average common shares outstanding for basic earnings per common share | | | | | 24,184,790 | | | | | | 23,858,696 | | |
Add: Dilutive effects of restricted stock and options | | | | | 290,908 | | | | | | 280,310 | | |
Average shares and dilutive potential common shares | | | | | 24,475,698 | | | | | | 24,139,006 | | |
Diluted earnings per common share | | | | $ | 1.69 | | | | | $ | 1.32 | | |
| | | | ||
| Keefe, Bruyette & Woods | | | Raymond James | |
| A Stifel Company | | | | |
| Hovde Group, LLC | |
Expense category | | | Amount | | |||
SEC registration fee | | | | $ | 4,848 | | |
FINRA filing fee | | | | | 8,000 | | |
Nasdaq Stock Market listing fee | | | | | 150,000 | | |
Legal fees and expenses | | | | | 519,000 | | |
Accounting fees and expenses | | | | | 634,000 | | |
Printing fees and expenses | | | | | 110,000 | | |
Transfer agent and registrar fees and expenses | | | | | 4,000 | | |
Miscellaneous expenses | | | | | 15,000 | | |
Total | | | | $ | 1,444,848 | | |
Signature | | | Title | | | Date | |
/s/ Nack Y. Paek Nack Y. Paek | | | Chairman; Chief Executive Officer (principal executive officer) | | | September | |
/s/ Farid Tan Farid Tan | | | President; Chief Financial Officer (principal financial and accounting officer) | | | September | |
William M. Hungeling | | | Director | | | September | |
Howard Hwasaeng Kim | | | Director | | | September | |
Francis Lai | | | Director | | | September | |
Don Leung | | | Director | | | September | |
Feiying Lu | | | Director | | | September | |
Young Park | | | Director | | | September | |
Ajit Patel | | | Director | | | September | |
Frank S. Rhee | | | Director | | | September | |
Sam Sang-Koo Shim | | | Director | | | September | |
* By: /s/ Farid Tan Farid Tan Attorney-in-Fact | | | |
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