| Florida (State or other jurisdiction of incorporation or organization) | | | 6022 (Primary Standard Industrial Classification Code Number) | | | 59-2260678 (I.R.S. Employer Identification No.) | |
| Randolph A. Moore III Alston & Bird LLP One Atlantic Center 1201 W. Peachtree Street Atlanta, Georgia 30309 Telephone: (404) 881-7000 | | | Telephone: | | | Telephone: | |
| Large accelerated filer ☒ | | | Accelerated filer ☐ | |
| Non-accelerated filer ☐ | | | Smaller reporting company ☐ | |
| | | | Emerging growth company ☐ | |
| | | |
Coral Gables, Florida , 2022 |
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Date | | | Seacoast closing sale price | | | Equivalent Apollo per share value | | ||||||
March 28, 2022 | | | | $ | 35.48 | | | | | $ | 36.65 | | |
[ ], 2022 | | | | $ | | | | | $ | | | |
Date | | | Seacoast closing sale price | | | Equivalent Professional per share value | | ||||||
August 5, 2022 | | | | $ | 36.75 | | | | | $ | 32.74 | | |
, 2022 | | | | $ | | | | | $ | | | |
Date | | | Seacoast closing sale price | | | Equivalent Apollo Bank per share value | | ||||||
March 28, 2022 | | | | $ | 35.48 | | | | | $ | 42.42 | | |
[ ], 2022 | | | | $ | | | | | $ | | | |
| | | Seacoast Common Stock | | |||||||||||||||
| | | High | | | Low | ��� | | Dividends | | |||||||||
2020 | | | | | | | | | | | | | | | | | | | |
First Quarter | | | | $ | 30.87 | | | | | $ | 13.30 | | | | | $ | — | | |
Second Quarter | | | | $ | 25.89 | | | | | $ | 16.02 | | | | | $ | — | | |
Third Quarter | | | | $ | 22.23 | | | | | $ | 17.00 | | | | | $ | — | | |
Fourth Quarter | | | | $ | 30.26 | | | | | $ | 17.62 | | | | | $ | — | | |
2021 | | | | | | | | | | | | | | | | | | | |
First Quarter | | | | $ | 40.93 | | | | | $ | 28.52 | | | | | $ | — | | |
Second Quarter | | | | $ | 38.87 | | | | | $ | 33.00 | | | | | $ | 0.13 | | |
Third Quarter | | | | $ | 34.56 | | | | | $ | 29.28 | | | | | $ | 0.13 | | |
Fourth Quarter | | | | $ | 38.48 | | | | | $ | 32.38 | | | | | $ | 0.13 | | |
| | Seacoast Common Stock | | | Seacoast Common Stock | | ||||||||||||||||||||||||||||||||
| | High | | Low | | Dividends | | | High | | Low | | Dividends | | ||||||||||||||||||||||||
2020 | | | | | | | | | | | | | | | | | ||||||||||||||||||||||
First Quarter | | | $ | 30.87 | | | | $ | 13.30 | | | | $ | — | | | ||||||||||||||||||||||
Second Quarter | | | $ | 25.89 | | | | $ | 16.02 | | | | $ | — | | | ||||||||||||||||||||||
Third Quarter | | | $ | 22.23 | | | | $ | 17.00 | | | | $ | — | | | ||||||||||||||||||||||
Fourth Quarter | | | $ | 30.26 | | | | $ | 17.62 | | | | $ | — | | | ||||||||||||||||||||||
2021 | | | | | | | | | | | | | | | | | ||||||||||||||||||||||
First Quarter | | | $ | 40.93 | | | | $ | 28.52 | | | | $ | — | | | ||||||||||||||||||||||
Second Quarter | | | $ | 38.87 | | | | $ | 33.00 | | | | $ | 0.13 | | | ||||||||||||||||||||||
Third Quarter | | | $ | 34.56 | | | | $ | 29.28 | | | | $ | 0.13 | | | ||||||||||||||||||||||
Fourth Quarter | | | $ | 38.48 | | | | $ | 32.38 | | | | $ | 0.13 | | | ||||||||||||||||||||||
2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
First Quarter | | | $ | 39.31 | | | | $ | 32.40 | | | | $ | 0.13 | | | | | $ | 39.31 | | | | $ | 32.40 | | | | $ | 0.13 | | | ||||||
Second Quarter | | | $ | 35.96 | | | | $ | 30.82 | | | | $ | 0.17 | | | | | $ | 35.96 | | | | $ | 30.82 | | | | $ | 0.17 | | | ||||||
Third Quarter (through August 9, 2022) | | | $ | 36.92 | | | | $ | 31.17 | | | | $ | — | | | ||||||||||||||||||||||
Third Quarter | | | $ | 36.92 | | | | $ | 30.12 | | | | $ | 0.17 | | | ||||||||||||||||||||||
Fourth Quarter (through October 3, 2022) | | | $ | 30.84 | | | | $ | 30.14 | | | | $ | — | | |
Date | | | Price per Share | | | Number of Shares | | ||||||
January 1, 2021 | | | | $ | 20.00 | | | | | | 6,600 | | |
January 5, 2022 | | | | | 17.00 | | | | | | 10,046 | | |
January 5, 2022 | | | | | 17.00 | | | | | | 4,500 | | |
| | | Professional Common Stock | | |||||||||||||||
| | | High | | | Low | | | Dividends | | |||||||||
2020 | | | | | | | | | | | | | | | | | | | |
First Quarter(a) | | | | $ | 20.00 | | | | | $ | 14.24 | | | | | $ | — | | |
Second Quarter | | | | $ | 17.75 | | | | | $ | 12.70 | | | | | $ | — | | |
| | | Professional Common Stock | | |||||||||||||||
| | | High | | | Low | | | Dividends | | |||||||||
Third Quarter | | | | $ | 14.35 | | | | | $ | 10.45 | | | | | $ | — | | |
Fourth Quarter | | | | $ | 18.00 | | | | | $ | 13.34 | | | | | $ | — | | |
2021 | | | | | | | | | | | | | | | | | | | |
First Quarter | | | | $ | 19.22 | | | | | $ | 14.97 | | | | | $ | — | | |
Second Quarter | | | | $ | 20.46 | | | | | $ | 17.58 | | | | | $ | — | | |
Third Quarter | | | | $ | 18.64 | | | | | $ | 17.08 | | | | | $ | — | | |
Fourth Quarter | | | | $ | 19.74 | | | | | $ | 18.48 | | | | | $ | — | | |
2022 | | | | | | | | | | | | | | | | | | | |
First Quarter | | | | $ | 23.70 | | | | | $ | 19.29 | | | | | $ | — | | |
Second Quarter | | | | $ | 23.92 | | | | | $ | 18.79 | | | | | $ | — | | |
Third Quarter | | | | $ | 31.25 | | | | | $ | 19.33 | | | | | $ | — | | |
Fourth Quarter (through October 3, 2022) | | | | $ | 26.47 | | | | | $ | 25.92 | | | | | $ | — | | |
| | | Six Months Ended June 30, | | | Year Ended December 31, | | ||||||||||||||||||||||||||||||||||||
(Amounts in thousands, except per share data) | | | 2022 | | | 2021 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | | |||||||||||||||||||||
Net interest income | | | | $ | 158,169 | | | | | $ | 132,412 | | | | | $ | 276,025 | | | | | $ | 262,743 | | | | | $ | 243,618 | | | | | $ | 211,515 | | | | | $ | 176,296 | | |
Provision for credit losses | | | | | 7,378 | | | | | | (10,570) | | | | | | (9,421) | | | | | | 38,179 | | | | | | 10,999 | | | | | | 11,730 | | | | | | 5,648 | | |
Noninterest income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other | | | | | 33,089 | | | | | | 33,162 | | | | | | 71,305 | | | | | | 60,335 | | | | | | 55,515 | | | | | | 50,645 | | | | | | 43,230 | | |
Gain on sale of VISA stock | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 15,153 | | |
Securities (losses)/gains, net | | | | | (752) | | | | | | (169) | | | | | | (578) | | | | | | 1,235 | | | | | | 1,217 | | | | | | (623) | | | | | | 86 | | |
Noninterest expense | | | | | 115,065 | | | | | | 91,904 | | | | | | 197,435 | | | | | | 185,552 | | | | | | 160,739 | | | | | | 162,273 | | | | | | 149,916 | | |
Income before income taxes | | | | | 68,063 | | | | | | 84,071 | | | | | | 158,738 | | | | | | 100,582 | | | | | | 128,612 | | | | | | 87,534 | | | | | | 79,201 | | |
Provision for income taxes | | | | | 14,720 | | | | | | 18,942 | | | | | | 34,335 | | | | | | 22,818 | | | | | | 29,873 | | | | | | 20,259 | | | | | | 36,336 | | |
Net income | | | | $ | 53,343 | | | | | $ | 65,129 | | | | | $ | 124,403 | | | | | $ | 77,764 | | | | | $ | 98,739 | | | | | $ | 67,275 | | | | | $ | 42,865 | | |
Per share data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income available to common shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted | | | | $ | 0.86 | | | | | $ | 1.17 | | | | | $ | 2.18 | | | | | $ | 1.44 | | | | | $ | 1.90 | | | | | $ | 1.38 | | | | | $ | 0.99 | | |
Basic | | | | | 0.87 | | | | | | 1.18 | | | | | | 2.20 | | | | | | 1.45 | | | | | | 1.92 | | | | | | 1.40 | | | | | | 1.01 | | |
Cash dividends declared | | | | | 0.30 | | | | | | 0.13 | | | | | | 0.39 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Book value per share common | | | | | 21.65 | | | | | | 21.33 | | | | | | 22.40 | | | | | | 20.46 | | | | | | 19.13 | | | | | | 16.83 | | | | | | 14.70 | | |
Assets | | | | $ | 10,811,704 | | | | | $ | 9,316,833 | | | | | $ | 9,681,433 | | | | | $ | 8,342,392 | | | | | $ | 7,108,511 | | | | | $ | 6,747,659 | | | | | $ | 5,810,129 | | |
Net loans | | | | | 6,450,779 | | | | | | 5,355,922 | | | | | | 5,841,714 | | | | | | 5,642,616 | | | | | | 5,163,250 | | | | | | 4,792,791 | | | | | | 3,790,255 | | |
Deposits | | | | | 9,188,953 | | | | | | 7,836,436 | | | | | | 8,067,589 | | | | | | 6,932,561 | | | | | | 5,584,753 | | | | | | 5,177,240 | | | | | | 4,592,720 | | |
Shareholders’ equity | | | | | 1,329,575 | | | | | | 1,182,347 | | | | | | 1,310,736 | | | | | | 1,130,402 | | | | | | 985,639 | | | | | | 864,267 | | | | | | 689,664 | | |
Performance ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Return on average assets | | | | | 1.00% | | | | | | 1.50% | | | | | | 1.33% | | | | | | 0.99% | | | | | | 1.45% | | | | | | 1.11% | | | | | | 0.82% | | |
Return on average equity | | | | | 7.82% | | | | | | 11.39% | | | | | | 10.24% | | | | | | 7.44% | | | | | | 10.63% | | | | | | 9.08% | | | | | | 7.51% | | |
Average equity to average assets | | | | | 12.81% | | | | | | 13.17% | | | | | | 13.02% | | | | | | 13.30% | | | | | | 13.60% | | | | | | 12.23% | | | | | | 10.96% | | |
June 30, 2022 (Amounts in thousands) | | | Historical Seacoast Banking Corporation of Florida | | | Historical Professional Holding Corp. | | | Professional Holding Corp. Pro Forma Adjustments | | | Historical Apollo Bancshares, Inc. | | | Apollo Bancshares, Inc. Pro Forma Adjustments | | | Historical Drummond Banking Company | | | Drummond Banking Company Pro Forma Adjustments | | | Cumulative Pro Forma Adjustments | | | Pro Forma Condensed Combined | | |||||||||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 906,098 | | | | | $ | 368,079 | | | | | $ | — | | | | | $ | 53,321 | | | | | $ | — | | | | | $ | 37,825 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,365,323 | | |
Debt securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Securities available-for-sale (at fair value) | | | | | 1,800,791 | | | | | | 191,807 | | | | | | — | | | | | | 219,628 | | | | | | — | | | | | | 358,464 | | | | | | — | | | | | | — | | | | | | 2,570,690 | | |
Securities held-to-maturity | | | | | 794,785 | | | | | | 204 | | | | | | (7)(1) | | | | | | — | | | | | | — | | | | | | 4,918 | | | | | | (439)(1) | | | | | | (446) | | | | | | 799,461 | | |
Total debt securities | | | | | 2,595,576 | | | | | | 192,011 | | | | | | (7) | | | | | | 219,628 | | | | | | — | | | | | | 363,382 | | | | | | (439) | | | | | | (446) | | | | | | 3,370,150 | | |
Loans | | | | | 6,555,753 | | | | | | 1,987,233 | | | | | | (54,066)(2) | | | | | | 735,959 | | | | | | (16,205)(10) | | | | | | 571,044 | | | | | | (12,000)(18) | | | | | | (82,271) | | | | | | 9,753,513 | | |
Less: Allowance for credit losses | | | | | (90,769) | | | | | | (15,142) | | | | | | (25,092)(3) | | | | | | (7,547) | | | | | | (8,813)(11) | | | | | | (10,130) | | | | | | (3,170)(19) | | | | | | (37,075) | | | | | | (160,663) | | |
Loans, net of allowance for credit losses | | | | | 6,450,779 | | | | | | 1,972,091 | | | | | | (79,158) | | | | | | 728,412 | | | | | | (25,018) | | | | | | 560,914 | | | | | | (15,170) | | | | | | (119,346) | | | | | | 9,592,850 | | |
Goodwill | | | | | 286,606 | | | | | | 24,621 | | | | | | 184,037(4) | | | | | | 3,309 | | | | | | 70,215(12) | | | | | | — | | | | | | 69,863(20) | | | | | | 324,115 | | | | | | 638,651 | | |
Other intangible assets, net | | | | | 20,062 | | | | | | 1,018 | | | | | | 42,482(5) | | | | | | 119 | | | | | | 14,581(13) | | | | | | 2,803 | | | | | | 17,497(21) | | | | | | 74,560 | | | | | | 98,562 | | |
Other assets | | | | | 538,378 | | | | | | 103,694 | | | | | | 16,714(6) | | | | | | 60,271 | | | | | | 6,092(14) | | | | | | 53,384 | | | | | | 3,587(22) | | | | | | 26,393 | | | | | | 796,326 | | |
Total assets | | | | $ | 10,811,704 | | | | | $ | 2,661,514 | | | | | $ | 164,068 | | | | | $ | 1,065,060 | | | | | $ | 65,870 | | | | | $ | 1,018,308 | | | | | $ | 75,338 | | | | | $ | 305,276 | | | | | $ | 15,861,862 | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | $ | 9,188,953 | | | | | $ | 2,381,735 | | | | | $ | (1,200)(7) | | | | | $ | 930,285 | | | | | $ | (100)(15) | | | | | $ | 918,973 | | | | | $ | (400)(23) | | | | | $ | (1,700) | | | | | $ | 13,418,246 | | |
Other liabilities | | | | | 293,176 | | | | | | 46,181 | | | | | | 12,564(8) | | | | | | 56,511 | | | | | | 2,797(16) | | | | | | 19,292 | | | | | | 2,302(24) | | | | | | 17,663 | | | | | | 432,824 | | |
Total liabilities | | | | $ | 9,482,129 | | | | | $ | 2,427,916 | | | | | $ | 11,364 | | | | | $ | 986,796 | | | | | $ | 2,697 | | | | | $ | 938,265 | | | | | $ | 1,902 | | | | | $ | 15,963 | | | | | $ | 13,851,069 | | |
Shareholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total shareholders’ equity | | | | | 1,329,575 | | | | | | 233,598 | | | | | | 152,704(9) | | | | | | 78,264 | | | | | | 63,173(17) | | | | | | 80,043 | | | | | | 73,436(25) | | | | | | 289,313 | | | | | | 2,010,793 | | |
Total liabilities and shareholders’ equity | | | | $ | 10,811,704 | | | | | $ | 2,661,514 | | | | | $ | 164,068 | | | | | $ | 1,065,060 | | | | | $ | 65,870 | | | | | $ | 1,018,308 | | | | | $ | 75,338 | | | | | $ | 305,276 | | | | | $ | 15,861,862 | | |
For the Six Months Ended June 30, 2022 (Amounts in thousands, except per share data) | | | Historical Seacoast Banking Corporation of Florida | | | Historical Professional Holding Corp. | | | Professional Holding Corp. Pro Forma Adjustments | | | Historical Apollo Bancshares, Inc. | | | Apollo Bancshares, Inc. Pro Forma Adjustments | | | Historical Drummond Banking Company | | | Drummond Banking Company Pro Forma Adjustments | | | Cumulative Pro Forma Adjustments | | | Pro Forma Condensed Combined | | |||||||||||||||||||||||||||
Interest Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest and fees on loans | | | | $ | 136,425 | | | | | $ | 41,380 | | | | | $ | 5,833(26) | | | | | $ | 15,245 | | | | | $ | 2,026(26) | | | | | $ | 15,695 | | | | | $ | 1,500(26) | | | | | $ | 9,359 | | | | | $ | 218,104 | | |
Interest on securities and other | | | | | 25,556 | | | | | | 3,312 | | | | | | — | | | | | | 2,218 | | | | | | — | | | | | | 4,270 | | | | | | — | | | | | | — | | | | | | 35,356 | | |
Total Interest Income | | | | | 161,981 | | | | | | 44,692 | | | | | | 5,833 | | | | | | 17,463 | | | | | | 2,026 | | | | | | 19,965 | | | | | | 1,500 | | | | | | 9,359 | | | | | | 253,460 | | |
Total Interest Expense | | | | | 3,812 | | | | | | 3,736 | | | | | | (156)(27) | | | | | | 1,183 | | | | | | (124)(27) | | | | | | 300 | | | | | | — | | | | | | (280) | | | | | | 8,751 | | |
Net interest income | | | | | 158,169 | | | | | | 40,956 | | | | | | 5,989 | | | | | | 16,280 | | | | | | 2,150 | | | | | | 19,665 | | | | | | 1,500 | | | | | | 9,639 | | | | | | 244,709 | | |
Provision for credit losses | | | | | 7,378 | | | | | | 3,091 | | | | | | — | | | | | | 648 | | | | | | — | | | | | | 1,716 | | | | | | — | | | | | | — | | | | | | 12,833 | | |
Noninterest Income | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||
Other income | | | | | 33,089 | | | | | | 3,041 | | | | | | — | | | | | | 1,712 | | | | | | — | | | | | | 7,683 | | | | | | — | | | | | | — | | | | | | 45,509 | | |
Securities (losses) gains, net | | | | | (752) | | | | | | 13 | | | | | | — | | | | | | 581 | | | | | | — | | | | | | 2 | | | | | | — | | | | | | — | | | | | | (156) | | |
Total Noninterest Income | | | | | 32,337 | | | | | | 3,054 | | | | | | — | | | | | | 2,293 | | | | | | — | | | | | | 7,685 | | | | | | — | | | | | | — | | | | | | 45,353 | | |
Noninterest Expense | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||
Salaries and employee benefits | | | | | 65,927 | | | | | | 18,693 | | | | | | — | | | | | | 6,144 | | | | | | — | | | | | | 10,273 | | | | | | — | | | | | | — | | | | | | 101,037 | | |
Outsourced data processing costs | | | | | 12,199 | | | | | | 618 | | | | | | — | | | | | | 1,048 | | | | | | — | | | | | | 1,080 | | | | | | — | | | | | | — | | | | | | 14,945 | | |
Other expense | | | | | 36,939 | | | | | | 9,788 | | | | | | 3,625(29) | | | | | | 3,995 | | | | | | 1,187(29) | | | | | | 7,851 | | | | | | 1,142(29) | | | | | | 5,954 | | | | | | 66,876 | | |
Total Noninterest Expenses | | | | | 115,065 | | | | | | 29,099 | | | | | | 3,625 | | | | | | 11,187 | | | | | | 1,187 | | | | | | 19,204 | | | | | | 1,142 | | | | | | 5,954 | | | | | | 182,858 | | |
Income before income taxes | | | | | 68,063 | | | | | | 11,820 | | | | | | 2,364 | | | | | | 6,738 | | | | | | 963 | | | | | | 6,430 | | | | | | 358 | | | | | | 3,685 | | | | | | 94,371 | | |
Provision for income taxes | | | | | 14,720 | | | | | | 2,407 | | | | | | 544(30) | | | | | | 1,595 | | | | | | 221(30) | | | | | | 1,427 | | | | | | 82(30) | | | | | | 848 | | | | | | 20,997 | | |
Net Income | | | | $ | 53,343 | | | | | $ | 9,413 | | | | | $ | 1,820 | | | | | $ | 5,143 | | | | | $ | 742 | | | | | $ | 5,003 | | | | | $ | 276 | | | | | $ | 2,837 | | | | | $ | 73,374 | | |
Non controlling interests | | | | | — | | | | | | — | | | | | | — | | | | | | 831 | | | | | | (831) | | | | | | — | | | | | | — | | | | | | (831) | | | | | | — | | |
Net income available to common shareholders | | | | $ | 53,343 | | | | | $ | 9,413 | | | | | $ | 1,820 | | | | | $ | 4,312 | | | | | $ | 1,573 | | | | | $ | 5,003 | | | | | $ | 276 | | | | | $ | 3,668 | | | | | $ | 73,374 | | |
Per share data | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||
Net income available to common shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||
Diluted | | | | $ | 0.86 | | | | | $ | 0.67 | | | | | | | | | | | $ | 0.95 | | | | | | | | | | | $ | 50.54 | | | | | | | | | | | | | | | | | $ | 0.86 | | |
Basic | | | | | 0.87 | | | | | | 0.70 | | | | | | | | | | | | 1.14 | | | | | | | | | | | | 50.54 | | | | | | | | | | | | | | | | | | 0.88 | | |
Average common shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||
Diluted | | | | | 61,818 | | | | | | 14,010 | | | | | | (840)(32) | | | | | | 4,519 | | | | | | 209(32) | | | | | | 99 | | | | | | 5,037(32) | | | | | | 4,406 | | | | | | 84,852 | | |
Basic | | | | | 61,269 | | | | | | 13,396 | | | | | | (603)(32) | | | | | | 3,766 | | | | | | 753(32) | | | | | | 99 | | | | | | 5,037(32) | | | | | | 5,187 | | | | | | 83,717 | | |
For the Year Ended December 31, 2021 (Amounts in thousands, except per share data) | | | Historical Seacoast Banking Corporation of Florida | | | Historical Professional Holding Corp. | | | Professional Holding Corp. Pro Forma Adjustments | | | Historical Apollo Bancshares, Inc. | | | Apollo Bancshares, Inc. Pro Forma Adjustments | | | Historical Drummond Banking Company | | | Drummond Banking Company Pro Forma Adjustments | | | Historical Business Bank of Florida, Corp.(31) | | | Business Bank of Florida, Corp. Pro Forma Adjustments | | | Historical Sabal Palm Bancorp, Inc.(31) | | | Sabal Palm Bancorp, Inc. Pro Forma Adjustments | | | Cumulative Pro Forma Adjustments | | | Pro Forma Condensed Combined | | |||||||||||||||||||||||||||||||||||||||
Interest Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
Interest and fees on loans | | | | $ | 251,471 | | | | | $ | 76,912 | | | | | $ | 12,108(26) | | | | | $ | 25,631 | | | | | $ | 4,051(26) | | | | | $ | 27,377 | | | | | $ | 3,000(26) | | | | | $ | 7,976 | | | | | $ | 283(26) | | | | | $ | 14,026 | | | | | $ | 815(26) | | | | | $ | 20,257 | | | | | $ | 423,650 | | |
Interest on securities and other | | | | | 32,773 | | | | | | 2,709 | | | | | | — | | | | | | 3,788 | | | | | | — | | | | | | 6,968 | | | | | | — | | | | | | 376 | | | | | | — | | | | | | 403 | | | | | | — | | | | | | — | | | | | | 47,017 | | |
Total Interest Income | | | | | 284,244 | | | | | | 79,621 | | | | | | 12,108 | | | | | | 29,419 | | | | | | 4,051 | | | | | | 34,345 | | | | | | 3,000 | | | | | | 8,352 | | | | | | 283 | | | | | | 14,429 | | | | | | 815 | | | | | | 20,257 | | | | | | 470,667 | | |
Total Interest Expense | | | | | 8,219 | | | | | | 7,313 | | | | | | (1,511)(27) | | | | | | 2,939 | | | | | | (448)(27) | | | | | | 723 | | | | | | —(27) | | | | | | 401 | | | | | | —(27) | | | | | | 678 | | | | | | —(27) | | | | | | (1,959) | | | | | | 18,314 | | |
Net interest income | | | | | 276,025 | | | | | | 72,308 | | | | | | 13,619 | | | | | | 26,480 | | �� | | | | 4,499 | | | | | | 33,622 | | | | | | 3,000 | | | | | | 7,951 | | | | | | 283 | | | | | | 13,751 | | | | | | 815 | | | | | | 22,216 | | | | | | 452,353 | | |
Provision for credit losses | | | | | (9,421) | | | | | | 4,740 | | | | | | 33,635(28) | | | | | | (100) | | | | | | 16,205(28) | | | | | | 1,406 | | | | | | 12,000(28) | | | | | | — | | | | | | 2,820(28) | | | | | | (772) | | | | | | 3,640(28) | | | | | | 68,300 | | | | | | 64,153 | | |
Noninterest Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
Other | | | | | 71,305 | | | | | | 6,148 | | | | | | — | | | | | | 2,778 | | | | | | — | | | | | | 14,236 | | | | | | — | | | | | | 231 | | | | | | — | | | | | | 1,857 | | | | | | — | | | | | | — | | | | | | 96,555 | | |
Securities (losses) gains, net | | | | | (578) | | | | | | 39 | | | | | | — | | | | | | 252 | | | | | | — | | | | | | 1,806 | | | | | | — | | | | | | 147 | | | | | | — | | | | | | (35) | | | | | | — | | | | | | — | | | | | | 1,631 | | |
Total Noninterest Income | | | | | 70,727 | | | | | | 6,187 | | | | | | — | | | | | | 3,030 | | | | | | — | | | | | | 16,042 | | | | | | — | | | | | | 378 | | | | | | — | | | | | | 1,857 | | | | | | — | | | | | | — | | | | | | 98,221 | | |
Noninterest Expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
Salaries and employee benefits | | | | | 115,156 | | | | | | 29,277 | | | | | | — | | | | | | 10,890 | | | | | | — | | | | | | 18,168 | | | | | | — | | | | | | 2,315 | | | | | | — | | | | | | 6,182 | | | | | | — | | | | | | — | | | | | | 181,987 | | |
Outsourced data processing costs | | | | | 19,919 | | | | | | 1,182 | | | | | | — | | | | | | 1,813 | | | | | | — | | | | | | 2,303 | | | | | | — | | | | | | 572 | | | | | | — | | | | | | 723 | | | | | | — | | | | | | — | | | | | | 26,512 | | |
Other expense | | | | | 62,360 | | | | | | 16,807 | | | | | | 7,250(29) | | | | | | 6,682 | | | | | | 2,363(29) | | | | | | 13,134 | | | | | | 2,764(29) | | | | | | 1,860 | | | | | | 315(29) | | | | | | 4,864 | | | | | | 645(29) | | | | | | 13,337 | | | | | | 119,044 | | |
Total Noninterest Expense | | | | | 197,435 | | | | | | 47,266 | | | | | | 7,250 | | | | | | 19,385 | | | | | | 2,363 | | | | | | 33,605 | | | | | | 2,764 | | | | | | 4,747 | | | | | | 315 | | | | | | 11,804 | | | | | | 645 | | | | | | 13,337 | | | | | | 327,578 | | |
Income before income taxes | | | | | 158,738 | | | | | | 26,489 | | | | | | (27,266) | | | | | | 10,225 | | | | | | (14,069) | | | | | | 14,653 | | | | | | (11,764) | | | | | | 3,583 | | | | | | (2,852) | | | | | | 4,576 | | | | | | (3,470) | | | | | | (59,421) | | | | | | 158,843 | | |
Provision for income taxes | | | | | 34,335 | | | | | | 5,125 | | | | | | (6,271)(30) | | | | | | 1,804 | | | | | | (3,236)(30) | | | | | | 2,644 | | | | | | (2,706)(30) | | | | | | 948 | | | | | | (656)(30) | | | | | | 1,366 | | | | | | (798)(30) | | | | | | (13,667) | | | | | | 32,555 | | |
Net Income | | | | $ | 124,403 | | | | | $ | 21,364 | | | | | $ | (20,995) | | | | | $ | 8,421 | | | | | $ | (10,833) | | | | | $ | 12,009 | | | | | $ | (9,058) | | | | | $ | 2,635 | | | | | $ | (2,196) | | | | | $ | 3,210 | | | | | $ | (2,672) | | | | | $ | (45,754) | | | | | $ | 126,288 | | |
Non controlling interests | | | | | — | | | | | | — | | | | | | — | | | | | | 1,325 | | | | | | (1,325) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,325) | | | | | | — | | |
Net income available to common shareholders | | | | $ | 124,403 | | | | | $ | 21,364 | | | | | $ | (20,995) | | | | | $ | 7,096 | | | | | $ | (9,508) | | | | | $ | 12,009 | | | | | $ | (9,058) | | | | | $ | 2,635 | | | | | $ | (2,196) | | | | | $ | 3,210 | | | | | $ | (2,672) | | | | | $ | (44,429) | | | | | $ | 126,288 | | |
Per share data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
Net income available to common shareholders | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
Diluted | | | | $ | 2.18 | | | | | $ | 1.54 | | | | | | | | | | | $ | 1.57 | | | | | | | | | | | $ | 121.31 | | | | | | | | | | | $ | 2.24 | | | | | | | | | | | $ | 0.38 | | | | | | | | | | | | | | | | | $ | 1.54 | | |
Basic | | | | | 2.20 | | | | | | 1.61 | | | | | | | | | | | | 1.88 | | | | | | | | | | | | 121.31 | | | | | | | | | | | | 2.37 | | | | | | | | | | | | 0.43 | | | | | | | | | | | | | | | | | | 1.57 | | |
Average common shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
Diluted | | | | | 57,088 | | | | | | 13,901 | | | | | | (1,517)(32) | | | | | | 4,519 | | | | | | 209(32) | | | | | | 99 | | | | | | 5,037(32) | | | | | | 1,178 | | | | | | (236)(32) | | | | | | 8,392 | | | | | | (6,543)(32) | | | | | | (3,050) | | | | | | 82,127 | | |
Basic | | | | | 56,586 | | | | | | 13,308 | | | | | | (1,452)(32) | | | | | | 3,766 | | | | | | 753(32) | | | | | | 99 | | | | | | 5,037(32) | | | | | | 1,112 | | | | | | (223)(32) | | | | | | 7,537 | | | | | | (5,877)(32) | | | | | | (1,762) | | | | | | 80,646 | | |
Preliminary calculation of estimated merger consideration (In thousands, except per share data) | | | |||||
Expected Professional shares at closing | | | | | 14,360 | | |
Per share exchange ratio | | | | | 0.8909 | | |
Number of shares of Seacoast common stock issued | | | | | 12,793 | | |
Multiplied by Seacoast common stock price per share on September 30, 2022 | | | | $ | 30.23 | | |
Value of Seacoast common stock issued | | | | | 386,730 | | |
Fair value of Professional options converted | | | | | 11,402 | | |
Estimated total merger consideration | | | | $ | 398,132 | | |
Allocation of purchase price (In thousands) | | | June 30, 2022 | | |||
Estimated total merger consideration | | | | $ | 398,132 | | |
Assets: | | | | | | | |
Cash | | | | | 368,079 | | |
Securities | | | | | 192,004 | | |
Loans | | | | | 1,892,933 | | |
Bank premises and equipment | | | | | 8,570 | | |
Core deposit intangibles | | | | | 43,500 | | |
Other assets | | | | | 108,304 | | |
Total assets | | | | | 2,613,390 | | |
Liabilities: | | | | | | | |
Deposits | | | | | 2,380,535 | | |
Other borrowings | | | | | 21,636 | | |
Other liabilities | | | | | 21,745 | | |
Total liabilities | | | | | 2,423,916 | | |
Net assets acquired | | | | | 189,474 | | |
Estimated pro forma goodwill | | | | $ | 208,658 | | |
| | Seacoast Common Stock | | | Seacoast Common Stock | | ||||||||||||||||||||||||||||||||
| | High | | Low | | Dividends | | | High | | Low | | Dividends | | ||||||||||||||||||||||||
2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
First Quarter | | | $ | 30.87 | | | | $ | 13.30 | | | | $ | — | | | | | $ | 30.87 | | | | $ | 13.30 | | | | $ | — | | | ||||||
Second Quarter | | | $ | 25.89 | | | | $ | 16.02 | | | | $ | — | | | | | $ | 25.89 | | | | $ | 16.02 | | | | $ | — | | | ||||||
Third Quarter | | | $ | 22.23 | | | | $ | 17.00 | | | | $ | — | | | | | $ | 22.23 | | | | $ | 17.00 | | | | $ | — | | | ||||||
Fourth Quarter | | | $ | 30.26 | | | | $ | 17.62 | | | | $ | — | | | | | $ | 30.26 | | | | $ | 17.62 | | | | $ | — | | | ||||||
2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
First Quarter | | | $ | 40.93 | | | | $ | 28.52 | | | | $ | — | | | | | $ | 40.93 | | | | $ | 28.52 | | | | $ | — | | | ||||||
Second Quarter | | | $ | 38.87 | | | | $ | 33.00 | | | | $ | 0.13 | | | | | $ | 38.87 | | | | $ | 33.00 | | | | $ | 0.13 | | | ||||||
Third Quarter | | | $ | 34.56 | | | | $ | 29.28 | | | | $ | 0.13 | | | | | $ | 34.56 | | | | $ | 29.28 | | | | $ | 0.13 | | | ||||||
Fourth Quarter | | | $ | 38.48 | | | | $ | 32.38 | | | | $ | 0.13 | | | | | $ | 38.48 | | | | $ | 32.38 | | | | $ | 0.13 | | | ||||||
2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
First Quarter | | | $ | 39.31 | | | | $ | 32.40 | | | | $ | 0.13 | | | | | $ | 39.31 | | | | $ | 32.40 | | | | $ | 0.13 | | | ||||||
Second Quarter | | | $ | 35.96 | | | | $ | 30.82 | | | | $ | 0.17 | | | | | $ | 35.96 | | | | $ | 30.82 | | | | $ | 0.17 | | | ||||||
Third Quarter (through August 9, 2022) | | | $ | 36.92 | | | | $ | 31.17 | | | | $ | — | | | ||||||||||||||||||||||
Third Quarter | | | $ | 36.92 | | | | $ | 30.12 | | | | $ | 0.17 | | | ||||||||||||||||||||||
Fourth Quarter (through October 3, 2022) | | | $ | 30.84 | | | | $ | 30.14 | | | | $ | — | | |
Date | | | Price per Share | | | Number of Shares | | ||||||
January 1, 2021 | | | | $ | 20.00 | | | | | | 6,600 | | |
January 5, 2022 | | | | | 17.00 | | | | | | 10,046 | | |
January 5, 2022 | | | | | 17.00 | | | | | | 4,500 | | |
| | | Professional Common Stock | | |||||||||||||||
| | | High | | | Low | | | Dividends | | |||||||||
2020 | | | | | | | | | | | | | | | | | | | |
First Quarter(a) | | | | $ | 20.00 | | | | | $ | 14.24 | | | | | $ | — | | |
Second Quarter | | | | $ | 17.75 | | | | | $ | 12.70 | | | | | $ | — | | |
Third Quarter | | | | $ | 14.35 | | | | | $ | 10.45 | | | | | $ | — | | |
Fourth Quarter | | | | $ | 18.00 | | | | | $ | 13.34 | | | | | $ | — | | |
2021 | | | | | | | | | | | | | | | | | | | |
First Quarter | | | | $ | 19.22 | | | | | $ | 14.97 | | | | | $ | — | | |
Second Quarter | | | | $ | 20.46 | | | | | $ | 17.58 | | | | | $ | — | | |
Third Quarter | | | | $ | 18.64 | | | | | $ | 17.08 | | | | | $ | — | | |
Fourth Quarter | | | | $ | 19.74 | | | | | $ | 18.48 | | | | | $ | — | | |
2022 | | | | | | | | | | | | | | | | | | | |
First Quarter | | | | $ | 23.70 | | | | | $ | 19.29 | | | | | $ | — | | |
Second Quarter | | | | $ | 23.92 | | | | | $ | 18.79 | | | | | $ | — | | |
Third Quarter | | | | $ | 31.25 | | | | | $ | 19.33 | | | | | $ | — | | |
Fourth Quarter (through October 3, 2022) | | | | $ | 26.47 | | | | | $ | 25.92 | | | | | $ | — | | |
| Transaction Price Per Share / Professional Tangible Book Value Per Share | | | | | 215% | | |
| Transaction Price Per Share / LTM Earnings Per Share | | | | | 23.0x | | |
| Transaction Price Per Share / Estimated 2022 Earnings Per Share(1) | | | | | 20.5x | | |
| Transaction Price Per Share / Estimated 2023 Earnings Per Share(1) | | | | | 15.1x | | |
| Core Deposit Premium(2) | | | | | 12.6% | | |
| Core Deposit Premium(3) | | | | | 12.3% | | |
| Market Premium as of August 3, 2022 | | | | | 44.6% | | |
| | | Beginning Value 8/3/2021 | | | Ending Value 8/3/2022 | | ||||||
Seacoast | | | | | 100% | | | | | | 119.9% | | |
Seacoast Peer Group | | | | | 100% | | | | | | 105.6% | | |
S&P 500 Index | | | | | 100% | | | | | | 93.9% | | |
NASDAQ Bank Index | | | | | 100% | | | | | | 98.2% | | |
| | | Beginning Value 8/3/2019 | | | Ending Value 8/3/2022 | | ||||||
Seacoast | | | | | 100% | | | | | | 141.0% | | |
Seacoast Peer Group | | | | | 100% | | | | | | 111.0% | | |
S&P 500 Index | | | | | 100% | | | | | | 141.7% | | |
NASDAQ Bank Index | | | | | 100% | | | | | | 119.5% | | |
| | | Beginning Value 8/3/2021 | | | Ending Value 8/3/2022 | | ||||||
Professional | | | | | 100% | | | | | | 113.5% | | |
Professional Peer Group | | | | | 100% | | | | | | 102.3% | | |
S&P 500 Index | | | | | 100% | | | | | | 93.9% | | |
NASDAQ Bank Index | | | | | 100% | | | | | | 98.2% | | |
| | | Beginning Value 8/3/2019 | | | Ending Value 8/3/2022 | | ||||||
Professional | | | | | 100% | | | | | | 121.4% | | |
Professional Peer Group | | | | | 100% | | | | | | 114.5% | | |
S&P 500 Index | | | | | 100% | | | | | | 141.7% | | |
NASDAQ Bank Index | | | | | 100% | | | | | | 119.5% | | |
| Amerant Bancorp Inc. | | | Renasant Corp. | |
| Atlantic Union Bankshares Corp. | | | ServisFirst Bancshares Inc. | |
| City Holding Co. | | | The First Bancshares | |
| FB Financial Corp. | | | TowneBank | |
| First Bancorp | | | Trustmark Corp. | |
| Live Oak Bancshares Inc. | | | WesBanco Inc. | |
| | | Seacoast | | | Seacoast Peer Group Median | | | Seacoast Peer Group Mean | | | Seacoast Peer Group Low | | | Seacoast Peer Group High | | |||||||||||||||
Total assets ($mm) | | | | | 10,812 | | | | | | 13,344 | | | | | | 12,809 | | | | | | 6,037 | | | | | | 19,662 | | |
Loans / Deposits(2) (%) | | | | | 71.2 | | | | | | 74.9 | | | | | | 76.4 | | | | | | 58.9 | | | | | | 92.3 | | |
Non-performing assets / Total assets(3) (%) | | | | | 0.30 | | | | | | 0.39 | | | | | | 0.43 | | | | | | 0.08 | | | | | | 1.60 | | |
Tangible common equity/Tangible assets(4)(%) | | | | | 9.74 | | | | | | 7.43 | | | | | | 7.60 | | | | | | 6.43 | | | | | | 8.90 | | |
Tier 1 Leverage Ratio(5) (%) | | | | | 11.60 | | | | | | 9.43 | | | | | | 9.48 | | | | | | 8.19 | | | | | | 10.43 | | |
Total RBC Ratio(6) (%) | | | | | 17.70 | | | | | | 14.38 | | | | | | 14.44 | | | | | | 11.18 | | | | | | 16.98 | | |
Bank CRE / Total RBC Ratio (%) | | | | | 191.7 | | | | | | 262.4 | | | | | | 246.2 | | | | | | 165.1 | | | | | | 319.3 | | |
LTM Return on average assets (%) | | | | | 1.09 | | | | | | 1.15 | | | | | | 1.25 | | | | | | 0.64 | | | | | | 2.32 | | |
LTM Return on average equity (%) | | | | | 8.49 | | | | | | 9.93 | | | | | | 11.82 | | | | | | 6.47 | | | | | | 26.28 | | |
LTM Net interest margin (%) | | | | | 3.26 | | | | | | 3.03 | | | | | | 3.07 | | | | | | 2.64 | | | | | | 3.98 | | |
LTM Efficiency ratio (%) | | | | | 53.0 | | | | | | 61.0 | | | | | | 59.1 | | | | | | 32.2 | | | | | | 76.0 | | |
Price/Tangible book value (%) | | | | | 219 | | | | | | 179 | | | | | | 201 | | | | | | 130 | | | | | | 392 | | |
Price/LTM Earnings per share (x) | | | | | 19.4 | | | | | | 11.9 | | | | | | 12.9 | | | | | | 9.0 | | | | | | 20.9 | | |
Price/2022E Earnings per share | | | | | 22.1 | | | | | | 11.9 | | | | | | 12.9 | | | | | | 9.0 | | | | | | 18.5 | | |
Price/2023E Earnings per share | | | | | 14.2 | | | | | | 10.8 | | | | | | 11.6 | | | | | | 8.3 | | | | | | 17.0 | | |
Current Dividend Yield (%) | | | | | 1.9 | | | | | | 2.6 | | | | | | 2.3 | | | | | | 0.3 | | | | | | 4.0 | | |
Market value ($mm) | | | | | 2,224 | | | | | | 1,932 | | | | | | 1,917 | | | | | | 604 | | | | | | 4,701 | | |
| American National Bankshares | | | FVCBankcorp Inc. | |
| Blue Ridge Bankshares Inc. | | | HomeTrust Bancshares Inc. | |
| Burke & Herbert Bank & Trust | | | John Marshall Bancorp Inc. | |
| C&F Financial Corp. | | | MetroCity Bankshares Inc. | |
| CapStar Financial Hldgs Inc | | | MVB Financial Corp | |
| Colony Bankcorp Inc. | | | Primis Financial Corp. | |
| FineMark Holdings Inc. | | | River Financial Corp. | |
| First Citizens Bancshares Inc. | | | Southern First Bancshares Inc | |
| First Community Bankshares Inc | | | | |
| | | Professional | | | Professional Peer Group Median | | | Professional Peer Group Mean | | | Professional Peer Group Low | | | Professional Peer Group High | | |||||||||||||||
Total assets ($mm) | | | | | 2,662 | | | | | | 3,097 | | | | | | 2,953 | | | | | | 2,290 | | | | | | 3,586 | | |
Loans / Deposits (%) | | | | | 83.4 | | | | | | 82.8 | | | | | | 81.0 | | | | | | 59.1 | | | | | | 115.6 | | |
Non-performing assets / Total assets(1) (%) | | | | | 0.09 | | | | | | 0.22 | | | | | | 0.37 | | | | | | 0.02 | | | | | | 1.07 | | |
Tangible common equity/Tangible assets (%) | | | | | 7.89 | | | | | | 8.25 | | | | | | 8.21 | | | | | | 4.13 | | | | | | 10.31 | | |
Tier 1 Leverage Ratio(2) (%) | | | | | 8.10 | | | | | | 10.11 | | | | | | 10.04 | | | | | | 8.36 | | | | | | 11.63 | | |
Total RBC Ratio(3) (%) | | | | | 12.80 | | | | | | 14.96 | | | | | | 15.30 | | | | | | 11.02 | | | | | | 20.03 | | |
CRE / Total RBC Ratio (%) | | | | | 283.8 | | | | | | 269.5 | | | | | | 247.6 | | | | | | 36.6 | | | | | | 385.1 | | |
LTM Return on average assets (%) | | | | | 0.73 | | | | | | 1.17 | | | | | | 1.21 | | | | | | 0.63 | | | | | | 2.40 | | |
LTM Return on average equity (%) | | | | | 8.58 | | | | | | 11.82 | | | | | | 12.25 | | | | | | 5.15 | | | | | | 24.30 | | |
LTM Net interest margin (%) | | | | | 3.07 | | | | | | 3.22 | | | | | | 3.30 | | | | | | 2.20 | | | | | | 4.27 | | |
LTM Efficiency ratio (%) | | | | | 60.1 | | | | | | 59.7 | | | | | | 60.9 | | | | | | 34.4 | | | | | | 89.5 | | |
Price/Tangible book value (%) | | | | | 148 | | | | | | 141 | | | | | | 143 | | | | | | 101 | | | | | | 209 | | |
Price/LTM Earnings per share (x) | | | | | 15.9 | | | | | | 10.2 | | | | | | 10.5 | | | | | | 6.6 | | | | | | 16.0 | | |
Price/2022E Earnings per share | | | | | 11.5 | | | | | | 11.0 | | | | | | 12.0 | | | | | | 7.4 | | | | | | 22.0 | | |
Price/2023E Earnings per share | | | | | 10.9 | | | | | | 10.3 | | | | | | 10.2 | | | | | | 7.9 | | | | | | 12.1 | | |
Current Dividend Yield (%) | | | | | — | | | | | | 2.9 | | | | | | 2.7 | | | | | | 1.4 | | | | | | 4.1 | | |
Market value ($mm) | | | | | 309 | | | | | | 351 | | | | | | 346 | | | | | | 169 | | | | | | 525 | | |
Acquiror | | | Target | |
The First Bancshares | | | Heritage Southeast Bancorp. | |
HomeTrust Bancshares Inc. | | | Quantum Capital Corp. | |
First Bancorp | | | GrandSouth Bancorporation | |
F.N.B. Corp. | | | UB Bancorp | |
DFCU Financial | | | First Citrus Bancorp. Inc. | |
United Community Banks Inc. | | | Progress Financial Corp. | |
Seacoast Banking Corporation of Florida | | | Drummond Banking Co. | |
The First Bancshares | | | Beach Bancorp Inc. | |
Seacoast Banking Corporation of Florida | | | Apollo Bancshares/Apollo Bank | |
United Community Banks Inc. | | | Reliant Bancorp Inc. | |
Lake Michigan CU | | | Pilot Bancshares Inc. | |
Simmons First National Corp. | | | Triumph Bancshares Inc. | |
Simmons First National Corp. | | | Landmark Community Bank | |
United Bankshares Inc. | | | Community Bankers Trust Corp | |
First Bancorp | | | Select Bancorp Inc. | |
United Community Banks Inc. | | | Aquesta Financial Holdings | |
Peoples Bancorp Inc. | | | Premier Financial Bancorp Inc. | |
Seacoast Banking Corporation of FL | | | Legacy Bank of Florida | |
BancorpSouth Bank | | | FNS Bancshares Inc. | |
| | | Seacoast/ Professional | | | Regional Precedent Transactions | | ||||||||||||||||||||||||
| | | Median | | | Mean | | | Low | | | High | | ||||||||||||||||||
Transaction Price / LTM Earnings Per Share (x) | | | | | 23.0 | | | | | | 14.1 | | | | | | 14.6 | | | | | | 4.2 | | | | | | 23.8 | | |
Transaction Price / Estimated Earnings Per Share (x) | | | | | 15.1 | | | | | | 12.3 | | | | | | 12.5 | | | | | | 10.8 | | | | | | 14.4 | | |
Transaction Price / Tangible Book Value Per Share (%) | | | | | 215 | | | | | | 179 | | | | | | 174 | | | | | | 139 | | | | | | 217 | | |
Tangible Book Value Premium to Core Deposits (%) | | | | | 12.6 | | | | | | 9.3 | | | | | | 9.0 | | | | | | 4.4 | | | | | | 16.2 | | |
1-Day Market Premium (%) | | | | | 44.6 | | | | | | 28.6 | | | | | | 30.1 | | | | | | 9.5 | | | | | | 66.5 | | |
Discount Rate | | | 10.0x | | | 11.5x | | | 13.0x | | | 14.5x | | | 16.0x | | | 17.5x | | |||||||||||||||||||||
| | 8.0% | | | | | $ | 22.97 | | | | | $ | 26.03 | | | | | $ | 29.09 | | | | | $ | 32.15 | | | | | $ | 35.21 | | | | | $ | 38.27 | | |
| | 9.0% | | | | | $ | 22.04 | | | | | $ | 24.97 | | | | | $ | 27.89 | | | | | $ | 30.82 | | | | | $ | 33.75 | | | | | $ | 36.68 | | |
| | 10.0% | | | | | $ | 21.15 | | | | | $ | 23.95 | | | | | $ | 26.76 | | | | | $ | 29.56 | | | | | $ | 32.36 | | | | | $ | 35.17 | | |
| | 11.0% | | | | | $ | 20.30 | | | | | $ | 22.99 | | | | | $ | 25.67 | | | | | $ | 28.36 | | | | | $ | 31.05 | | | | | $ | 33.73 | | |
| | 12.0% | | | | | $ | 19.50 | | | | | $ | 22.07 | | | | | $ | 24.65 | | | | | $ | 27.22 | | | | | $ | 29.80 | | | | | $ | 32.37 | | |
Discount Rate | | | 150% | | | 165% | | | 180% | | | 195% | | | 210% | | | 225% | | |||||||||||||||||||||
| | 8.0% | | | | | $ | 28.69 | | | | | $ | 31.30 | | | | | $ | 33.91 | | | | | $ | 36.52 | | | | | $ | 39.13 | | | | | $ | 41.74 | | |
| | 9.0% | | | | | $ | 27.50 | | | | | $ | 30.00 | | | | | $ | 32.50 | | | | | $ | 35.00 | | | | | $ | 37.50 | | | | | $ | 40.00 | | |
| | 10.0% | | | | | $ | 26.38 | | | | | $ | 28.78 | | | | | $ | 31.17 | | | | | $ | 33.56 | | | | | $ | 35.95 | | | | | $ | 38.34 | | |
| | 11.0% | | | | | $ | 25.32 | | | | | $ | 27.61 | | | | | $ | 29.90 | | | | | $ | 32.19 | | | | | $ | 34.48 | | | | | $ | 36.78 | | |
| | 12.0% | | | | | $ | 24.30 | | | | | $ | 26.50 | | | | | $ | 28.70 | | | | | $ | 30.89 | | | | | $ | 33.09 | | | | | $ | 35.28 | | |
Annual Estimate Variance | | | 10.0x | | | 11.5x | | | 13.0x | | | 14.5x | | | 16.0x | | | 17.5x | | |||||||||||||||||||||
| | (20.0)% | | | | | $ | 18.24 | | | | | $ | 20.60 | | | | | $ | 22.96 | | | | | $ | 25.32 | | | | | $ | 27.68 | | | | | $ | 30.04 | | |
| | (10.0)% | | | | | $ | 20.21 | | | | | $ | 22.86 | | | | | $ | 25.51 | | | | | $ | 28.17 | | | | | $ | 30.82 | | | | | $ | 33.47 | | |
| | 0.0% | | | | | $ | 22.17 | | | | | $ | 25.12 | | | | | $ | 28.07 | | | | | $ | 31.02 | | | | | $ | 33.97 | | | | | $ | 36.91 | | |
| | 10.0% | | | | | $ | 24.14 | | | | | $ | 27.38 | | | | | $ | 30.62 | | | | | $ | 33.87 | | | | | $ | 37.11 | | | | | $ | 40.35 | | |
| | 20.0% | | | | | $ | 26.10 | | | | | $ | 29.64 | | | | | $ | 33.18 | | | | | $ | 36.72 | | | | | $ | 40.25 | | | | | $ | 43.79 | | |
Discount Rate | | | 8.0x | | | 9.0x | | | 10.0x | | | 11.0x | | | 12.0x | | | 13.0x | | |||||||||||||||||||||
| | 9.0% | | | | | $ | 13.89 | | | | | $ | 15.63 | | | | | $ | 17.37 | | | | | $ | 19.10 | | | | | $ | 20.84 | | | | | $ | 22.58 | | |
| | 10.0% | | | | | $ | 13.30 | | | | | $ | 14.97 | | | | | $ | 16.63 | | | | | $ | 18.29 | | | | | $ | 19.95 | | | | | $ | 21.62 | | |
| | 11.0% | | | | | $ | 12.74 | | | | | $ | 14.34 | | | | | $ | 15.93 | | | | | $ | 17.52 | | | | | $ | 19.11 | | | | | $ | 20.71 | | |
| | 12.0% | | | | | $ | 12.21 | | | | | $ | 13.74 | | | | | $ | 15.26 | | | | | $ | 16.79 | | | | | $ | 18.32 | | | | | $ | 19.84 | | |
| | 13.0% | | | | | $ | 11.71 | | | | | $ | 13.17 | | | | | $ | 14.63 | | | | | $ | 16.10 | | | | | $ | 17.56 | | | | | $ | 19.02 | | |
Discount Rate | | | 125% | | | 135% | | | 145% | | | 155% | | | 165% | | | 175% | | |||||||||||||||||||||
| | 9.0% | | | | | $ | 21.72 | | | | | $ | 23.46 | | | | | $ | 25.20 | | | | | $ | 26.94 | | | | | $ | 28.67 | | | | | $ | 30.41 | | |
| | 10.0% | | | | | $ | 20.80 | | | | | $ | 22.47 | | | | | $ | 24.13 | | | | | $ | 25.79 | | | | | $ | 27.46 | | | | | $ | 29.12 | | |
| | 11.0% | | | | | $ | 19.93 | | | | | $ | 21.52 | | | | | $ | 23.11 | | | | | $ | 24.71 | | | | | $ | 26.30 | | | | | $ | 27.90 | | |
| | 12.0% | | | | | $ | 19.09 | | | | | $ | 20.62 | | | | | $ | 22.15 | | | | | $ | 23.68 | | | | | $ | 25.21 | | | | | $ | 26.73 | | |
| | 13.0% | | | | | $ | 18.31 | | | | | $ | 19.77 | | | | | $ | 21.23 | | | | | $ | 22.70 | | | | | $ | 24.16 | | | | | $ | 25.63 | | |
Annual Estimate Variance | | | 8.0x | | | 9.0x | | | 10.0x | | | 11.0x | | | 12.0x | | | 13.0x | | |||||||||||||||||||||
| | (20.0)% | | | | | $ | 9.83 | | | | | $ | 11.06 | | | | | $ | 12.28 | | | | | $ | 13.51 | | | | | $ | 14.74 | | | | | $ | 15.97 | | |
| | (10.0)% | | | | | $ | 11.06 | | | | | $ | 12.44 | | | | | $ | 13.82 | | | | | $ | 15.20 | | | | | $ | 16.58 | | | | | $ | 17.97 | | |
| | 0.0% | | | | | $ | 12.28 | | | | | $ | 13.82 | | | | | $ | 15.36 | | | | | $ | 16.89 | | | | | $ | 18.43 | | | | | $ | 19.96 | | |
| | 10.0% | | | | | $ | 13.51 | | | | | $ | 15.20 | | | | | $ | 16.89 | | | | | $ | 18.58 | | | | | $ | 20.27 | | | | | $ | 21.96 | | |
| | 20.0% | | | | | $ | 14.74 | | | | | $ | 16.58 | | | | | $ | 18.43 | | | | | $ | 20.27 | | | | | $ | 22.11 | | | | | $ | 23.95 | | |
Discount Rate | | | 8.0x | | | 9.0x | | | 10.0x | | | 11.0x | | | 12.0x | | | 13.0x | | |||||||||||||||||||||
| | 9.0% | | | | | $ | 26.28 | | | | | $ | 29.57 | | | | | $ | 32.86 | | | | | $ | 36.14 | | | | | $ | 39.43 | | | | | $ | 42.71 | | |
| | 10.0% | | | | | $ | 25.17 | | | | | $ | 28.31 | | | | | $ | 31.46 | | | | | $ | 34.61 | | | | | $ | 37.75 | | | | | $ | 40.90 | | |
| | 11.0% | | | | | $ | 24.11 | | | | | $ | 27.12 | | | | | $ | 30.14 | | | | | $ | 33.15 | | | | | $ | 36.16 | | | | | $ | 39.18 | | |
| | 12.0% | | | | | $ | 23.10 | | | | | $ | 25.99 | | | | | $ | 28.88 | | | | | $ | 31.77 | | | | | $ | 34.66 | | | | | $ | 37.54 | | |
| | 13.0% | | | | | $ | 22.15 | | | | | $ | 24.92 | | | | | $ | 27.69 | | | | | $ | 30.45 | | | | | $ | 33.22 | | | | | $ | 35.99 | | |
Discount Rate | | | 125% | | | 135% | | | 145% | | | 155% | | | 165% | | | 175% | | |||||||||||||||||||||
| | 9.0% | | | | | $ | 27.70 | | | | | $ | 29.91 | | | | | $ | 32.13 | | | | | $ | 34.34 | | | | | $ | 36.56 | | | | | $ | 38.77 | | |
| | 10.0% | | | | | $ | 26.52 | | | | | $ | 28.64 | | | | | $ | 30.76 | | | | | $ | 32.88 | | | | | $ | 35.01 | | | | | $ | 37.13 | | |
| | 11.0% | | | | | $ | 25.40 | | | | | $ | 27.44 | | | | | $ | 29.47 | | | | | $ | 31.50 | | | | | $ | 33.53 | | | | | $ | 35.57 | | |
| | 12.0% | | | | | $ | 24.34 | | | | | $ | 26.29 | | | | | $ | 28.24 | | | | | $ | 30.19 | | | | | $ | 32.13 | | | | | $ | 34.08 | | |
| | 13.0% | | | | | $ | 23.34 | | | | | $ | 25.21 | | | | | $ | 27.07 | | | | | $ | 28.94 | | | | | $ | 30.81 | | | | | $ | 32.67 | | |
Annual Estimate Variance | | | 8.0x | | | 9.0x | | | 10.0x | | | 11.0x | | | 12.0x | | | 13.0x | | |||||||||||||||||||||
| | (20.0)% | | | | | $ | 20.78 | | | | | $ | 23.38 | | | | | $ | 25.98 | | | | | $ | 28.58 | | | | | $ | 31.18 | | | | | $ | 33.78 | | |
| | (10.0)% | | | | | $ | 22.01 | | | | | $ | 24.76 | | | | | $ | 27.52 | | | | | $ | 30.27 | | | | | $ | 33.02 | | | | | $ | 35.77 | | |
| | 0.0% | | | | | $ | 23.24 | | | | | $ | 26.15 | | | | | $ | 29.05 | | | | | $ | 31.96 | | | | | $ | 34.86 | | | | | $ | 37.77 | | |
| | 10.0% | | | | | $ | 24.47 | | | | | $ | 27.53 | | | | | $ | 30.59 | | | | | $ | 33.65 | | | | | $ | 36.71 | | | | | $ | 39.76 | | |
| | 20.0% | | | | | $ | 25.70 | | | | | $ | 28.91 | | | | | $ | 32.12 | | | | | $ | 35.34 | | | | | $ | 38.55 | | | | | $ | 41.76 | | |
| Transaction Value / Reported Tangible Book Value (Aggregate): | | | | | 233% | | |
| Transaction Value / Last Twelve Months (“LTM”) Earnings(1): | | | | | 21.5x | | |
| Core Deposit Premium(2): | | | | | 12.3% | | |
| | | Contribution ($M) | | | Contribution (%) | | | Implied Exchange Ratio | | |||||||||||||||||||||||||||
| | | Seacoast | | | Professional | | | Pro Forma | | | Seacoast | | | Professional | | |||||||||||||||||||||
Balance Sheet | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Assets | | | | | 12,888.8 | | | | | | 2,661.5 | | | | | | 15,550.4 | | | | | | 82.9 | | | | | | 17.1 | | | | | | 0.9923x | | |
Gross Loans | | | | | 7,862.7 | | | | | | 1,987.2 | | | | | | 9,849.9 | | | | | | 79.8 | | | | | | 20.2 | | | | | | 1.2061x | | |
Deposits | | | | | 11,043.6 | | | | | | 2,381.7 | | | | | | 13,425.4 | | | | | | 82.3 | | | | | | 17.7 | | | | | | 1.0347x | | |
Tangible Common Equity | | | | | 1,142.5 | | | | | | 208.0 | | | | | | 1,350.5 | | | | | | 84.6 | | | | | | 15.4 | | | | | | 0.8791x | | |
Average | | | | | 82.4 | | | | | | 17.6 | | | | | | 1.0280x | | | ||||||||||||||||||
Profitability | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
YTD 2022 Core PTPP | | | | | 88.1 | | | | | | 18.6 | | | | | | 106.7 | | | | | | 82.6 | | | | | | 17.4 | | | | | | 1.0111x | | |
YTD 2022 Core Net Income | | | | | 63.4 | | | | | | 12.3 | | | | | | 75.7 | | | | | | 83.7 | | | | | | 16.3 | | | | | | 0.9368x | | |
FY 2022E Net Income (Internal)(1) | | | | | 137.4 | | | | | | 26.4 | | | | | | 163.8 | | | | | | 83.9 | | | | | | 16.1 | | | | | | 0.9262x | | |
FY 2023E Net Income (Internal)(1) | | | | | 182.8 | | | | | | 40.5 | | | | | | 223.3 | | | | | | 81.9 | | | | | | 18.1 | | | | | | 1.0624x | | |
| | | Contribution ($M) | | | Contribution (%) | | | Implied Exchange Ratio | | |||||||||||||||||||||||||||
| | | Seacoast | | | Professional | | | Pro Forma | | | Seacoast | | | Professional | | |||||||||||||||||||||
FY 2022E Net Income (Consensus)(2) | | | | | 137.4 | | | | | | 26.6 | | | | | | 164.0 | | | | | | 83.8 | | | | | | 16.2 | | | | | | 0.9309x | | |
FY 2023E Net Income (Consensus)(2) | | | | | 182.8 | | | | | | 29.1 | | | | | | 211.9 | | | | | | 86.3 | | | | | | 13.7 | | | | | | 0.7735x | | |
Average | | | | | 83.7 | | | | | | 16.3 | | | | | | 0.9402x | | | ||||||||||||||||||
Market Cap. | | | | | 2,223.9 | | | | | | 308.7 | | | | | | 2,532.5 | | | | | | 87.8 | | | | | | 12.2 | | | | | | 0.6792x | | |
High | | | | | 79.8 | | | | | | 20.2 | | | | | | 1.2061x | | | ||||||||||||||||||
Low | | | | | 87.8 | | | | | | 12.2 | | | | | | 0.6792x | | | ||||||||||||||||||
Project OZ | | | | | 84.4 | | | | | | 15.6 | | | | | | 0.8909x | | |
| | | | | | | | | Selected Companies | | |||||||||||||||||||||
| | | Apollo(1) | | | Average | | | Median | | | 25th Percentile | | | 75th Percentile | | |||||||||||||||
MRQ Core Pre-Tax Pre-Provision Return on Average Assets(2) | | | | | 1.12%(5) | | | | | | 1.13% | | | | | | 1.19% | | | | | | 0.84% | | | | | | 1.44% | | |
MRQ Core Return on Average Assets(3) | | | | | 0.74%(5) | | | | | | 0.94% | | | | | | 0.94% | | | | | | 0.77% | | | | | | 1.09% | | |
MRQ Core Return on Average Tangible Common Equity(3) | | | | | 8.8%(5)(6) | | | | | | 10.6% | | | | | | 11.4% | | | | | | 8.6% | | | | | | 12.2% | | |
MRQ Net Interest Margin | | | | | 2.94%(7) | | | | | | 3.14% | | | | | | 3.07% | | | | | | 2.81% | | | | | | 3.50% | | |
MRQ Fee Income / Revenue Ratio(4) | | | | | 10.0%(5) | | | | | | 22.7% | | | | | | 19.7% | | | | | | 11.3% | | | | | | 27.2% | | |
MRQ Efficiency Ratio | | | | | 63.9%(5) | | | | | | 69.3% | | | | | | 66.6% | | | | | | 80.0% | | | | | | 61.1% | | |
| | | | | | | | | Selected Companies | | |||||||||||||||||||||
| | | Apollo(1) | | | Average | | | Median | | | 25th Percentile | | | 75th Percentile | | |||||||||||||||
Tangible Common Equity / Tangible Assets | | | | | 6.79%(2) | | | | | | 9.01% | | | | | | 8.77% | | | | | | 8.00% | | | | | | 9.67% | | |
Total Capital Ratio | | | | | 13.31%(3) | | | | | | 15.15% | | | | | | 14.74% | | | | | | 13.70% | | | | | | 16.13% | | |
Loans / Deposits | | | | | 71.7% | | | | | | 69.5% | | | | | | 66.1% | | | | | | 59.1% | | | | | | 80.3% | | |
Loan Loss Reserves / Loans | | | | | 1.04%(4) | | | | | | 1.10% | | | | | | 1.16% | | | | | | 0.86% | | | | | | 1.27% | | |
Nonperforming Assets / Loans + OREO | | | | | 0.59%(5) | | | | | | 0.62% | | | | | | 0.50% | | | | | | 0.76% | | | | | | 0.33% | | |
Net Charge-offs / Average Loans | | | | | 0.00%(6) | | | | | | 0.02% | | | | | | 0.01% | | | | | | 0.06% | | | | | | (0.05)% | | |
| | | Professional Holding Corp. | | | 25th Percentile | | | Median | | | 75th Percentile | | ||||||||||||
Total Assets ($mm) | | | | $ | 2,662 | | | | | $ | 2,425 | | | | | $ | 2,960 | | | | | $ | 3,248 | | |
LTM Loan Growth (ex. PPP) | | | | | 17.8% | | | | | | 12.5% | | | | | | 15.8% | | | | | | 19.2% | | |
Securities / Assets | | | | | 22.0% | | | | | | 24.3% | | | | | | 19.7% | | | | | | 10.2% | | |
TCE / TA | | | | | 7.9% | | | | | | 7.2% | | | | | | 7.9% | | | | | | 9.2% | | |
Loans / Deposits | | | | | 83.4% | | | | | | 76.0% | | | | | | 85.5% | | | | | | 93.3% | | |
CRE/TRBC | | | | | 284% | | | | | | 242% | | | | | | 278% | | | | | | 328% | | |
Tier 1 Leverage Ratio | | | | | 8.5% | | | | | | 9.1% | | | | | | 9.9% | | | | | | 10.7% | | |
TRBC Ratio | | | | | 12.1% | | | | | | 12.7% | | | | | | 13.6% | | | | | | 14.3% | | |
NIB Deposits / Deposits | | | | | 32.6% | | | | | | 25.3% | | | | | | 29.6% | | | | | | 36.2% | | |
TBV + Dividends (1-Yr CAGR) | | | | | 3.4% | | | | | | (6.1)% | | | | | | 0.5% | | | | | | 10.7% | | |
TBV + Dividends (3-Yr CAGR) | | | | | 3.6% | | | | | | 6.0% | | | | | | 8.8% | | | | | | 11.3% | | |
TBV + Dividends (5-Yr CAGR) | | | | | NM | | | | | | 6.8% | | | | | | 9.7% | | | | | | 11.8% | | |
NPA / Assets(1) | | | | | 0.06% | | | | | | 0.43% | | | | | | 0.19% | | | | | | 0.09% | | |
ALLL / Loans (ex. PPP) | | | | | 0.77% | | | | | | 1.18% | | | | | | 1.11% | | | | | | 0.95% | | |
Cost of Total Deposits | | | | | 0.24% | | | | | | 0.29% | | | | | | 0.23% | | | | | | 0.15% | | |
Net Interest Margin | | | | | 3.41% | | | | | | 3.13% | | | | | | 3.47% | | | | | | 3.75% | | |
Fee Income / Revenue | | | | | 7.5% | | | | | | 9.7% | | | | | | 16.1% | | | | | | 19.3% | | |
Efficiency Ratio | | | | | 53.0% | | | | | | 61.7% | | | | | | 57.3% | | | | | | 47.3% | | |
LTM Core ROAA | | | | | 0.82% | | | | | | 1.12% | | | | | | 1.32% | | | | | | 1.47% | | |
LTM Core ROATCE | | | | | 10.9% | | | | | | 13.5% | | | | | | 15.5% | | | | | | 17.3% | | |
Core ROAA | | | | | 1.03% | | | | | | 1.12% | | | | | | 1.30% | | | | | | 1.51% | | |
Core ROATCE | | | | | 13.7% | | | | | | 13.6% | | | | | | 16.4% | | | | | | 20.1% | | |
| | | Professional Holding Corp. | | | 25th Percentile | | | Median | | | 75th Percentile | | ||||||||||||
Estimated 2022 ROA | | | | | 1.00% | | | | | | 1.10% | | | | | | 1.22% | | | | | | 1.41% | | |
Estimated 2023 ROA | | | | | 1.11% | | | | | | 1.10% | | | | | | 1.17% | | | | | | 1.33% | | |
Estimated 2022 ROTE | | | | | 11.8% | | | | | | 13.5% | | | | | | 14.6% | | | | | | 16.2% | | |
Institutional Ownership | | | | | 61% | | | | | | 30% | | | | | | 39% | | | | | | 45% | | |
Insider Ownership | | | | | 8% | | | | | | 11% | | | | | | 16% | | | | | | 27% | | |
Retail Ownership | | | | | 31% | | | | | | 37% | | | | | | 45% | | | | | | 48% | | |
Market Cap ($mm) | | | | $ | 309 | | | | | $ | 275 | | | | | $ | 335 | | | | | $ | 380 | | |
LTM ADTV(2) ($mm) | | | | $ | 1.0 | | | | | $ | 0.5 | | | | | $ | 0.6 | | | | | $ | 0.8 | | |
Price / Tangible Book Value | | | | | 1.48x | | | | | | 1.32x | | | | | | 1.46x | | | | | | 1.58x | | |
Price / LTM EPS | | | | | 15.9x | | | | | | 8.0x | | | | | | 8.6x | | | | | | 9.9x | | |
Price / NTM EPS | | | | | 10.3x | | | | | | 7.9x | | | | | | 8.6x | | | | | | 10.6x | | |
Price / 2022 Estimated EPS | | | | | 11.5x | | | | | | 8.0x | | | | | | 9.0x | | | | | | 10.8x | | |
Price / 2023 Estimated EPS | | | | | 10.4x | | | | | | 7.6x | | | | | | 8.7x | | | | | | 10.4x | | |
Dividend Yield | | | | | 0.0% | | | | | | 1.7% | | | | | | 2.4% | | | | | | 2.9% | | |
LTM Dividend Payout | | | | | 0.0% | | | | | | 13.2% | | | | | | 20.4% | | | | | | 25.9% | | |
Methodology | | | Illustrative Value Range | | |||
Tangible Book Value Per Share | | | | $ | 20.03 – $23.96 | | |
Core LTM Non-GAAP EPS | | | | $ | 12.57 – $15.61 | | |
2022E Consensus EPS | | | | $ | 15.69 – $21.07 | | |
2023E Consensus EPS | | | | $ | 16.37 – $22.54 | | |
2022E Management EPS | | | | $ | 15.48 – $20.78 | | |
2023E Management EPS | | | | $ | 22.16 – $30.51 | | |
| | | Selected Companies | | |||||||||||||||||||||
| | | Average | | | Median | | | 25th Percentile | | | 75th Percentile | | ||||||||||||
One-Year Stock Price Change | | | | | 11.2% | | | | | | 13.5% | | | | | | 3.0% | | | | | | 19.7% | | |
Year-To-Date Stock Price Change | | | | | 1.7% | | | | | | 0.9% | | | | | | (3.7)% | | | | | | 5.9% | | |
Price / Tangible Book Value per Share | | | | | 1.22x | | | | | | 1.18x | | | | | | 1.13x | | | | | | 1.29x | | |
Price / 2022 EPS Estimate | | | | | 11.8x | | | | | | 11.3x | | | | | | 11.2x | | | | | | 12.1x | | |
Price / 2023 EPS Estimate | | | | | 10.5x | | | | | | 10.7x | | | | | | 9.2x | | | | | | 12.0x | | |
Dividend Yield | | | | | 2.1% | | | | | | 2.0% | | | | | | 1.0% | | | | | | 3.1% | | |
LTM Dividend Payout Ratio | | | | | 30.9% | | | | | | 27.4% | | | | | | 16.8% | | | | | | 45.9% | | |
| | | | | | | | | Selected Companies | | |||||||||||||||||||||
| | | Seacoast | | | Average | | | Median | | | 25th Percentile | | | 75th Percentile | | |||||||||||||||
MRQ Core Pre-Tax Pre-Provision Return on Average Assets(1) | | | | | 1.68% | | | | | | 1.48% | | | | | | 1.40% | | | | | | 1.20% | | | | | | 1.82% | | |
MRQ Core Return on Average Assets(2) | | | | | 1.49% | | | | | | 1.21% | | | | | | 1.18% | | | | | | 0.97% | | | | | | 1.52% | | |
MRQ Core Return on Average Tangible Common Equity(2) | | | | | 14.5% | | | | | | 13.9% | | | | | | 13.8% | | | | | | 11.2% | | | | | | 17.1% | | |
MRQ Net Interest Margin | | | | | 3.19% | | | | | | 3.00% | | | | | | 3.00% | | | | | | 2.78% | | | | | | 3.18% | | |
MRQ Fee Income / Revenue Ratio(3) | | | | | 20.2% | | | | | | 24.6% | | | | | | 21.6% | | | | | | 18.2% | | | | | | 32.1% | | |
MRQ Efficiency Ratio | | | | | 53.5% | | | | | | 58.4% | | | | | | 58.8% | | | | | | 67.5% | | | | | | 49.2% | | |
| | | | | | | | | | | | | | | Selected Companies | | |||||||||||||||||||||
| | | Seacoast | | | Seacoast Pro Forma(2) | | | Average | | | Median | | | 25th Percentile | | | 75th Percentile | | ||||||||||||||||||
Tangible Common Equity / Tangible Assets | | | | | 11.10% | | | | | | 10.82% | | | | | | 8.87% | | | | | | 8.78% | | | | | | 8.09% | | | | | | 9.54% | | |
Total Capital Ratio | | | | | 18.21% | | | | | | 17.95% | | | | | | 15.57% | | | | | | 15.56% | | | | | | 14.51% | | | | | | 16.33% | | |
Loans / Deposits | | | | | 73.4% | | | | | | 72.9% | | | | | | 71.7% | | | | | | 70.2% | | | | | | 68.3% | | | | | | 72.0% | | |
Loan Loss Reserves / Loans | | | | | 1.40% | | | | | | | | | | | | 1.28% | | | | | | 1.25% | | | | | | 1.06% | | | | | | 1.39% | | |
Nonperforming Assets / Loans + OREO | | | | | 0.81% | | | | | | | | | | | | 0.67% | | | | | | 0.69% | | | | | | 0.83% | | | | | | 0.48% | | |
Net Charge-offs / Average Loans | | | | | 0.04% | | | | | | | | | | | | 0.10% | | | | | | 0.05% | | | | | | 0.09% | | | | | | 0.03% | | |
Three-Year Core EPS CAGR(1) | | | | | 13.7% | | | | | | | | | | | | 7.2% | | | | | | 5.0% | | | | | | 3.1% | | | | | | 11.1% | | |
Three-Year TBV Per Share CAGR | | | | | 13.1% | | | | | | | | | | | | 10.2% | | | | | | 10.4% | | | | | | 8.1% | | | | | | 11.5% | | |
| | | | | | | | | | | | | | | Selected Companies | | |||||||||||||||||||||
| | | Seacoast | | | Seacoast Pro Forma(3) | | | Average | | | Median | | | 25th Percentile | | | 75th Percentile | | ||||||||||||||||||
One-Year Stock Price Change | | | | | (0.3)% | | | | | | | | | | | | 7.6% | | | | | | (1.2)% | | | | | | (6.9)% | | | | | | 0.2% | | |
Year-To-Date Stock Price Change | | | | | 1.7% | | | | | | | | | | | | (3.1)% | | | | | | (4.4)% | | | | | | (6.3)% | | | | | | (0.7)% | | |
Price / Tangible Book Value per Share | | | | | 2.01x | | | | | | 2.03x | | | | | | 1.69x | | | | | | 1.59x | | | | | | 1.49x | | | | | | 1.82x | | |
Price / 2022 EPS Estimate | | | | | 17.9x | | | | | | | | | | | | 14.6x | | | | | | 14.0x | | | | | | 13.0x | | | | | | 15.5x | | |
Price / Capital Adjusted 2022 EPS Estimate(1) | | | | | 16.3x | | | | | | 16.5x | | | | | | 14.5x | | | | | | 13.8x | | | | | | 12.7x | | | | | | 14.5x | | |
Price / 2023 EPS Estimate | | | | | 15.6x | | | | | | | | | | | | 13.0x | | | | | | 12.5x | | | | | | 11.7x | | | | | | 13.3x | | |
Price / Capital Adjusted 2023 EPS Estimate(1) | | | | | 14.2x | | | | | | 14.3x | | | | | | 13.0x | | | | | | 12.0x | | | | | | 11.3x | | | | | | 13.5x | | |
2022-2023 EPS Growth | | | | | 14.5% | | | | | | | | | | | | 11.7% | | | | | | 10.3% | | | | | | 9.0% | | | | | | 13.5% | | |
2022 PEG Ratio(2) | | | | | 1.24x | | | | | | | | | | | | 1.42x | | | | | | 1.29x | | | | | | 0.96x | | | | | | 1.67x | | |
Dividend Yield | | | | | 1.4% | | | | | | | | | | | | 2.3% | | | | | | 2.6% | | | | | | 1.6% | | | | | | 2.9% | | |
LTM Dividend Payout Ratio | | | | | 23.9% | | | | | | | | | | | | 28.1% | | | | | | 27.6% | | | | | | 23.3% | | | | | | 36.3% | | |
| | | | | | | | | Selected Transactions | | |||||||||||||||||||||
| | | Seacoast / Apollo | | | 75th Percentile | | | Average | | | Median | | | 25th Percentile | | |||||||||||||||
Deal Value / Tangible Book Value | | | | | 1.98x | | | | | | 1.85x | | | | | | 1.62x | | | | | | 1.66x | | | | | | 1.45x | | |
Core Deposit Premium(2) | | | | | 9.8% | | | | | | 11.2% | | | | | | 8.1% | | | | | | 7.9% | | | | | | 6.3% | | |
Deal Value / LTM Earnings | | | | | 20.3x | | | | | | 18.5x | | | | | | 16.2x | | | | | | 14.8x | | | | | | 12.7x | | |
Price / Estimated Earnings | | | | | 21.9x | | | | | | 15.3x | | | | | | 14.3x | | | | | | 14.0x | | | | | | 12.9x | | |
Price / Forward Earnings | | | | | 13.9x | | | | | | 16.0x | | | | | | 14.3x | | | | | | 14.4x | | | | | | 12.7x | | |
| | | Seacoast % of Total | | | Apollo % of Total | | ||||||
Ownership: | | | | | 92.8% | | | | | | 7.2% | | |
Balance Sheet: | | | | | | | | | | | | | |
Assets | | | | | 90.8%(1) | | | | | | 9.2% | | |
Gross Loans Held for Investment | | | | | 90.4%(1) | | | | | | 9.6% | | |
Deposits | | | | | 90.3%(1) | | | | | | 9.7% | | |
Tangible Common Equity | | | | | 92.6%(1) | | | | | | 7.4% | | |
Income Statement: | | | | | | | | | | | | | |
2022 Estimated Earnings | | | | | 94.0% | | | | | | 6.0% | | |
2023 Estimated Earnings | | | | | 92.1% | | | | | | 7.9% | | |
| | | Professional Holding Corp. | | | 25th Percentile | | | Median | | | 75th Percentile | | ||||||||||||
Deal Value ($mm) | | | | $ | 484 | | | | | $ | 268 | | | | | $ | 305 | | | | | $ | 404 | | |
Stock Consideration | | | | | 100% | | | | | | 81% | | | | | | 99% | | | | | | 100% | | |
Cost Saves | | | | | 44% | | | | | | 30% | | | | | | 30% | | | | | | 35% | | |
Target Price / Tangible Book Value | | | | | 2.33x | | | | | | 1.52x | | | | | | 1.68x | | | | | | 1.83x | | |
Buyer Price / Tangible Book Value | | | | | 2.13x | | | | | | 1.50x | | | | | | 1.71x | | | | | | 1.87x | | |
Pay-to-Trade(1) | | | | | 1.10x | | | | | | 0.88x | | | | | | 1.01x | | | | | | 1.06x | | |
Transaction Value / LTM EPS | | | | | 21.5x | | | | | | 12.5x | | | | | | 14.5x | | | | | | 18.3x | | |
Core Deposit Premium | | | | | 12.3% | | | | | | 6.9% | | | | | | 8.2% | | | | | | 10.9% | | |
EPS Accretion / (Dilution) | | | | | 10.4% | | | | | | 5.8% | | | | | | 10.0% | | | | | | 13.0% | | |
Tangible Book Value Accretion/(Dilution) | | | | | (6.2)% | | | | | | (4.2)% | | | | | | (3.3)% | | | | | | (2.0)% | | |
Tangible Book Value Earnback (Years) | | | | | 2.5 | | | | | | 2.0 | | | | | | 2.6 | | | | | | 3.0 | | |
Target Total Assets ($mm) | | | | $ | 2,662 | | | | | $ | 1,789 | | | | | $ | 1,985 | | | | | $ | 2,600 | | |
Target NPAs / Assets | | | | | 0.1% | | | | | | 0.3% | | | | | | 0.5% | | | | | | 0.8% | | |
Target LTM ROAA | | | | | 0.7% | | | | | | 0.9% | | | | | | 1.2% | | | | | | 1.3% | | |
Methodology | | | Illustrative Value Range | | |||
Tangible Book Value | | | | $ | 23.03 – $27.71 | | |
Core LTM Non-GAAP EPS | | | | $ | 19.80 – $28.87 | | |
Core Deposit Premium | | | | $ | 23.33 – $30.89 | | |
| | | Professional Holding Corp. | | | 25th Percentile | | | Median | | | 75th Percentile | | ||||||||||||
Deal Value ($mm) | | | | $ | 484 | | | | | $ | 115 | | | | | $ | 190 | | | | | $ | 460 | | |
Stock Consideration | | | | | 100% | | | | | | 36% | | | | | | 90% | | | | | | 99% | | |
Cost Saves | | | | | 44% | | | | | | 30% | | | | | | 35% | | | | | | 40% | | |
Target Price / Tangible Book Value | | | | | 2.33x | | | | | | 1.53x | | | | | | 1.71x | | | | | | 2.06x | | |
Buyer Price / Tangible Book Value | | | | | 2.13x | | | | | | 1.48x | | | | | | 1.72x | | | | | | 2.09x | | |
Pay-to-Trade(1) | | | | | 1.1x | | | | | | 0.9x | | | | | | 1.0x | | | | | | 1.1x | | |
Transaction Value / LTM EPS | | | | | 21.5x | | | | | | 13.2x | | | | | | 16.2x | | | | | | 18.4x | | |
Core Deposit Premium | | | | | 12.3% | | | | | | 7.0% | | | | | | 9.7% | | | | | | 13.9% | | |
EPS Accretion / (Dilution) | | | | | 10.4% | | | | | | 8.3% | | | | | | 9.8% | | | | | | 11.5% | | |
Tangible Book Value Accretion/(Dilution) | | | | | (6.2)% | | | | | | (5.1)% | | | | | | (2.6)% | | | | | | (1.4)% | | |
Tangible Book Value Earnback (Years) | | | | | 2.5 | | | | | | 3.0 | | | | | | 2.3 | | | | | | 1.7 | | |
Target Total Assets ($mm) | | | | $ | 2,662 | | | | | $ | 624 | | | | | $ | 1,035 | | | | | $ | 2,203 | | |
Target NPAs / Assets | | | | | 0.1% | | | | | | 1.1% | | | | | | 0.4% | | | | | | 0.2% | | |
Target LTM ROAA | | | | | 0.7% | | | | | | 0.9% | | | | | | 1.2% | | | | | | 1.4% | | |
Methodology | | | Illustrative Value Range | | |||
Tangible Book Value Per Share | | | | $ | 23.16 – $31.15 | | |
Core LTM Non-GAAP EPS | | | | $ | 20.93 – $29.06 | | |
Core Deposit Premium | | | | $ | 23.39 – $35.11 | | |
Disqualified Individual | | | Estimated Total Section 280G Value of the Change in Control Payments | | |||
Eduardo Arriola | | | | $ | 2,721,607 | | |
Ramon Rodriguez | | | | $ | 950,000 | | |
Disqualified Individual | | | Estimated Total Section 280G Value of the Vesting and Payout of the Supplemental Executive Retirement Plans | | |||
Eduardo Arriola | | | | $ | 1,095,969 | | |
Ramon Rodriguez | | | | $ | 812,712 | | |
Disqualified Individual | | | Estimated Total Section 280G Value of the Severance Benefits | | |||
Eduardo Arriola | | | | $ | 325,000 | | |
Disqualified Individual | | | Estimated Total Section 280G Value of the Seacoast Stock Awards | | |||
Eduardo Arriola | | | | $ | 1,528,393 | | |
Disqualified Individual | | | Estimated Total Section 280G Value of the Guaranteed Annual Bonus | | |||
Eduardo Arriola | | | | $ | 165,000 | | |
Disqualified Individual | | | Estimated Total Section 280G Value of the Payments | | | Safe Harbor Amount | | | Estimated Excess Parachute Payments | | | Estimated Value of the Waived Amounts Submitted for Shareholder Approval under the 280G Proposal | | ||||||||||||
Eduardo Arriola | | | | $ | 5,835,969 | | | | | $ | 2,555,466 | | | | | $ | 4,984,146 | | | | | $ | 3,280,504 | | |
Ramon Rodriguez | | | | $ | 1,762,712 | | | | | $ | 945,934 | | | | | $ | 1,447,400 | | | | | $ | 816,779 | | |
| | | | | SEACOAST | | ||||
Capital Stock | | | Holders of | | | Holders of Seacoast capital stock are entitled to all the rights and obligations provided to capital shareholders under the FBCA and Seacoast’s articles of incorporation and bylaws. | | |||
Authorized | | | | | Seacoast’s authorized capital stock consists of 120,000,000 shares of common stock, par value $0.10 per share, and 4,000,000 shares of preferred stock, stated value $0.10 per share (2,000 of which are designated as Fixed Rate Cumulative Perpetual Preferred Stock, Series A and 50,000 of which are designated as |
Mandatorily Convertible Noncumulative Nonvoting Preferred Stock, Series B). | | |||||||||
Outstanding | | | As of | | | As of | | |||
Voting Rights | | | | | Holders of Seacoast common stock generally are entitled to one vote per share in the election of directors and on all matters submitted to a vote at a | |
| | | PROFESSIONAL | | | SEACOAST | | |||
| | | at a meeting of shareholders. | | | meeting of shareholders. | | |||
Cumulative Voting | | | No shareholder has the right of cumulative voting in the election of directors. | | | No shareholder has the right of cumulative voting in the election of directors. | | |||
Dividends | | | • The corporation would not be able to pay its debts as they come due in the usual course of business; or • The corporation’s assets would be less than the sum of its total liabilities plus (unless the articles of incorporation provide otherwise) the amount that would be needed, if the corporation were |
to be dissolved at the time of the distribution, to satisfy the preferential rights upon dissolution of shareholders whose preferential rights are superior to those receiving the distribution. In addition, under Federal Reserve policy, • its net income available to shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividends; • its prospective rate of earnings retention is not consistent with its capital needs and overall current and prospective financial condition; or • it will not meet, or is in danger of not meeting, its minimum regulatory capital adequacy ratios. | | | | |||||||
Number of Directors | | | | | Seacoast’s bylaws provide that the number of directors serving on the Seacoast board of directors shall be such number as determined from time to time by a vote of 66 | |
| | | | | SEACOAST | | ||||
| | | There are currently The Professional board of directors is divided into three classes, with the members of each class of directors serving staggered three-year terms and with approximately one-third of the directors being elected annually. As a result, it would take a dissident shareholder or shareholder group at least two annual meeting of shareholders to replace a majority of the directors of Professional. Each director holds office for the term for which he or she is elected and until his or her successor is elected and qualified, subject to such directors’ death, resignation or removal. | | | There are currently The Seacoast board of directors is divided into three classes, with the members of each class of directors serving staggered three-year terms and with approximately one-third of the directors being elected annually. As a result, it would take a dissident shareholder or shareholder group at least two annual meeting of shareholders to replace a majority of the directors of Seacoast. Each director holds office for the term for which he or she is elected and until his or her successor is elected and qualified, subject to such directors’ death, resignation or removal. | | |||
Election of Directors | | | Under the FBCA, unless otherwise provided in the articles of incorporation, directors are elected by a plurality of the votes cast by the holders of the shares entitled to vote in an election of directors the annual meeting at which a quorum is | | | Seacoast directors are similarly elected in accordance with FBCA and its articles of incorporation do not otherwise provide for the vote required to elect directors. |
However, notwithstanding the plurality standard, in an uncontested election for directors, our Corporate Governance Guidelines provide that if any director nominee receives a greater number of votes “withheld” from his or her election than votes “for” such election, then the director will promptly tender his or her resignation to the board of directors following certification of the shareholder vote, with such resignation to be effective upon acceptance by the board of directors. The Compensation and Governance Committee would then review and make a recommendation to the board of directors as to whether the board should accept the resignation, and the board of directors would ultimately decide whether to accept the resignation. | | |||||||||
Removal of Directors | | | | | Seacoast’s bylaws provide that directors | |
| | | PROFESSIONAL | | | SEACOAST | |
| | | provide that a director may only be removed for cause, which shall be defined for these purposes as a conviction of a felony, declaration of unsound mind by a court order, adjudication of bankruptcy, or such director having been adjudged by a court of competent jurisdiction to be liable for negligence or misconduct in the performance of his or her duty to Professional in a matter of substantial importance to the corporation and such adjudication is no longer subject to direct appeal. Removal for cause must be approved by a vote of at least 662∕3% of the shares of Professional then entitled to vote at an election for that director. Any action for the removal of a director must be brought within one (1) year of the date of such conviction, declaration or adjudication. | | | may be removed only for cause upon the affirmative vote of (1) 66 |
Seacoast’s then outstanding common stock (“Independent Majority of Shareholders”) at a shareholders’ meeting duly called and held for that purpose upon not less than 30 days’ prior written notice. | | |||||||||
Vacancies on the Board of Directors | | | | | Seacoast’s bylaws provide that vacancies in the Seacoast’s board of directors may be filled by the affirmative vote of (1) 66 | | ||||
Action by Written Consent | | | Professional’s bylaws provide that Professional’s bylaws provide that any action of the | | | Seacoast’s articles of incorporation provide that no action may be taken by written consent except as may be provided in the designation of the preferences, limitations and relative rights of any series of Seacoast’s preferred stock. Any action required or permitted to be taken by the holders of Seacoast’s common stock must be effected at a duly called annual or special meeting of such holders, and may not be effected by any consent in writing by such holders. Seacoast’s bylaws provide that any action required or permitted to be taken at a meeting of the Board of Directors or any committee thereof may be taken without a meeting if a written consent setting forth the action | |
| | | | | SEACOAST | | ||||
| | | | | | taken is signed by all members of the Board of Directors or committee, and such written consent or consents are filed with the minutes of the proceedings of the Board of Directors or of such committee. | | |||
Advance Notice Requirements for Shareholder Nominations and Other Proposals | | | Any To be considered, | | | Any Seacoast shareholder entitled to vote generally on the election of directors may recommend a candidate for nomination as a director. A shareholder may recommend a director nominee by submitting the name and qualifications of the candidate the shareholder wishes to recommend to Seacoast’s Compensation and Governance Committee, c/o Seacoast Banking Corporation of Florida, 815 Colorado Avenue, P. O. Box 9012, Stuart, Florida 34995. To be considered, recommendations with respect to an election of directors to be held at an annual meeting must be received not less than 60 days nor more than 90 days prior to the anniversary of Seacoast’s last annual meeting of shareholders (or, if the date of the annual meeting is changed by more than 20 days from such anniversary date, within 10 days after the date that Seacoast mails or otherwise gives notice of the date of the annual meeting to shareholders), and recommendations with respect to an election of directors to be held at a special meeting called for that purpose must be received by the 10th day following the date on which notice of the special meeting was first mailed to shareholders. | |
Notice of Shareholder Meeting | | | | | Notice of each shareholder meeting must be given to each shareholder entitled to vote not less than 10 nor more than 60 days before the date of the meeting. | | ||||
Amendments to Charter | | | | | Seacoast’s articles of incorporation have similar amendment provisions, except that the affirmative vote of (1) 662∕3% of all of shares outstanding and | |
| | | PROFESSIONAL | | | SEACOAST | |
| | |
The FBCA also allows the board of directors to amend the articles of incorporation without shareholder approval in certain discrete circumstances (for example, to change the par value for a class or series of shares). | | | | |||||||
Amendments to Bylaws | | | | | Seacoast’s bylaws may be amended by a vote of (1) 66 | | ||||
Special meeting of Shareholders | | | | | Seacoast’s bylaws provide that special meetings of the shareholders, for any purpose or purposes unless prescribed by statute, may be called by the Chairman of the Board or the Executive Chairman of the Board, the | |
| | | PROFESSIONAL | | | SEACOAST | |
| | | shareholders in accordance with the articles of incorporation. Professional’s articles of incorporation provide that the shareholders may not call a special meeting of shareholders unless the holders of at least 50% of all votes entitled to be cast on any issue proposed to be considered at the proposed special meeting sign, date and deliver to Professional’s secretary one or more written demands for the meeting describing the purpose or purposes for which it is to be held. The written request shall state the purpose or purposes of the meeting and shall be delivered at the main office of the Company addressed to the Chairman of the Board or the President. | | | Chief Executive Officer, the President or by the board of directors. The notice of such meeting must state the purpose of such meeting and no business may be transacted at the meeting except as stated in such notice. A special meeting |
of shareholders may be called by the Chief Executive Officer at the written request of the holders of shares representing not less than 50% of the | | |||||||||
Quorum | | | | | A majority of the shares entitled to vote, represented in person or by proxy, constitutes a quorum at any shareholder meeting. | | ||||
Proxy | | | | | Seacoast’s bylaws provide that a shareholder, a person entitled to vote on behalf of a shareholder pursuant to law, or an attorney in fact, may vote the shareholder’s shares in person or by proxy. A shareholder may appoint a proxy to vote or otherwise act for him/her by signing an appointment form, either personally or by his/her attorney in fact. An executed telegram or cablegram appearing to have been transmitted by such person, or a photographic, photo static, telecopy, electronic transmission (including a .PDF file) or equivalents reproduction of an appointment form is a sufficient appointment form. An appointment of a proxy is effective when received by the Secretary or other officer authorized to tabulate votes and is valid for up |
death or incapacity of a shareholder appointing a proxy does not affect the right of | |
| | | PROFESSIONAL | | | SEACOAST | | |||
| | | votes before the proxy exercises his or her authority under the appointment. An appointment of a proxy is revocable by the shareholder unless the appointment form conspicuously states that it is irrevocable and the appointment is coupled with an interest. | | | votes before the proxy exercises his authority under the appointment. A proxy shall be irrevocable if it conspicuously states that it is irrevocable and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power. | | |||
Preemptive Rights | | | | | Seacoast’s shareholders do not have preemptive rights. | | ||||
Shareholder Rights Plan/Shareholders’ Agreement | | | Professional does not have a Professional’s bylaws provide that two or more shareholders | | | Seacoast does not have a rights plan. Neither Seacoast nor Seacoast shareholders are parties to a shareholders’ agreement with respect to Seacoast’s capital stock. | | |||
Indemnification of Directors and Officers | | | | | Seacoast’s bylaws provide that Seacoast may indemnify its current and former directors, officers, |
employees and agents in accordance with that provided under the FBCA. | | |||||||||
Certain Business Combination Restrictions | | | | | Seacoast’s articles of incorporation do not contain any provision regarding business combinations between Seacoast and significant shareholders. | | ||||
Fundamental Business Transactions | | | | | Seacoast’s articles of incorporation provide that Seacoast needs the affirmative vote of 66 | |
| | | | | SEACOAST | | ||||
| | | | | | | ||||
Non-Shareholder Constituency Provision | | | | | Seacoast’s articles of incorporation provide that in connection with the exercise of its judgment in determining what is in the best interest of the corporation and its shareholders when evaluating certain offers, in addition to considering the adequacy and form of the consideration, the board shall also consider the social and economic effects of the transaction on Seacoast and its subsidiaries, its and their employees, depositors, loan and other customers, creditors, and the communities in which Seacoast and its subsidiaries operate or are located; the business and financial condition, and the earnings and business prospects of the acquiring person or persons, including, but not limited to, debt service and other existing financial obligations, financial obligations to be incurred in connection with the acquisition, and other likely financial obligations of the acquiring person or |
persons, and the possible effect of such conditions upon the corporation and its subsidiaries and the other elements of the communities in which the corporation and its subsidiaries operate or are located; the competence, experience, and integrity of the person and their management proposing or making such actions; the prospects for a successful conclusion of the business combination prospects; and Seacoast’s prospects as an independent entity. | | |||||||||
Dissenters’ Rights | | | | | Under the FBCA, dissenters’ rights are not available to holders of shares of any class or series of shares which is designated as a national market system security or listed on an interdealer quotation system by the National Association of Securities Dealers, Inc. Accordingly, holders of Seacoast | |
| | | PROFESSIONAL | | | SEACOAST | |
| | | Class A common stock are not entitled to exercise dissenters’ rights under the FBCA. | | | common stock are not entitled to exercise dissenters’ rights under the FBCA. | |
Name | | | Principal Occupation | |
Herbert Martens | | | Chairman of Professional and Professional Bank; Managing Partner, Advent Associates LLC (private investments) | |
Margaret Blakey | | | Executive Vice President Triple Five (real estate development) | |
Norman C. Edelcup | | | Director, Marquis Bancorp, Inc. (until its 2020 merger with Professional; director, Board of Social Citizens of South Florida (including its predecessors) | |
Carlos M. Garcia | | | Chief Executive Officer, BayBoston Managers LLC (investments) | |
Jon L. Gorney | | | Chairman, First Commonwealth Bank of Indiana (since 2021); previously, various executive positions with National City Corporation (financial services) | |
Abel L. Iglesias | | | President and Chief Executive Officer of Professional and Professional Bank | |
Ava L. Parker | | | President, Palm Beach State College | |
Lawrence Schimmel, M.D. | | | Chief Medical Officer, Nutex Health and Clinigence | |
Name | | | Principal Occupation | |
| | | Health | |
Hillel Shohet | | | Vice Chairman, National Bank of New York City | |
Joseph Willett | | | Director, Marsico Investment Fund | |
Market Area | | | Market Rank | | | No. of Institutions in Market | | | Total Deposits In Market (in 000’s) | | | Apollo Bank Market Share | | ||||||||||||
Miami, Florida | | | | | 31 | | | | | | 55 | | | | | $ | 136,450,489 | | | | | | 0.57% | | |
Coral Gables, Florida | | | | | N/A(1) | | | | | | N/A(1) | | | | | | N/A(1) | | | | | | N/A(1) | | |
Hialeah, Florida | | | | | 19 | | | | | | 23 | | | | | $ | 17,180,292 | | | | | | 0.31% | | |
Name | | | Position | |
Abel L. Iglesias | | | Chief Executive Officer of Professional and Chief Executive Officer and President of Professional Bank | |
Mary Usategui | | | Chief Financial Officer of Professional and Executive Vice President and Chief Financial Officer of Professional Bank | |
Michael C. Sontag | | | Executive Vice President, Secretary and General Counsel of Professional and Professional Bank | |
Ryan L. Gorney | | | Chief Information Officer of Professional Bank | |
Name of Beneficial Owner | | | Number of Shares Beneficially Owned | | | Percentage Beneficially Owned | | ||||||
Directors and officers: | | | | | | | | | | | | | |
Eduardo Arriola | | | | | 162,094(1) | | | | | | 4.21% | | |
Mathew L. Adler | | | | | 32,318(2) | | | | | | * | | |
Richard Dailey | | | | | 92,651(3) | | | | | | 2.42% | | |
Nicholas DiTempora | | | | | 232,649(4) | | | | | | 6.15% | | |
L. Robert Elias | | | | | 55,046(5) | | | | | | 1.46% | | |
William Heffernan | | | | | 10,000(6) | | | | | | * | | |
Luis Hernandez | | | | | 54,273(7) | | | | | | 1.44% | | |
Carlos Herrera | | | | | 132,128(8) | | | | | | 3.49% | | |
Carlos Modia | | | | | 5,000(9) | | | | | | * | | |
Ramon Rodriguez | | | | | 10,046 | | | | | | * | | |
Leslie Rozencwaig | | | | | 97,388(10) | | | | | | 2.57% | | |
Jeffrey Scheck | | | | | 111,952(11) | | | | | | 2.96% | | |
Directors and Officers (as a group, 12 persons) | | | | | 995,545 | | | | | | 24.73% | | |
Name of Beneficial Owner Directors and Executive Officers | | | Amount and Nature of Beneficial Ownership | | | Percentage of Outstanding Shares | | ||||||
Margaret Blakey | | | | | 4,874(1) | | | | | | * | | |
Norman Edelcup | | | | | 164,447(2) | | | | | | 1.2% | | |
Carlos M. Garcia | | | | | 428,643(3) | | | | | | 3.1% | | |
Jon L. Gorney | | | | | 19,287(4) | | | | | | * | | |
Ryan L. Gorney | | | | | 29,144(5) | | | | | | * | | |
Abel L. Iglesias | | | | | 26,805(6) | | | | | | * | | |
Hebert Martens | | | | | 70,760(7) | | | | | | * | | |
Ava Parker | | | | | 4,874(8) | | | | | | | | |
Dr. Lawrence Schimmel, M.D. | | | | | 63,037(9) | | | | | | * | | |
Mary Usategui | | | | | 25,890(10) | | | | | | * | | |
Joseph Willett | | | | | —(11) | | | | | | * | | |
All directors and executive officers as a group (11 persons) | | | | | 837,761 | | | | | | 6.1% | | |
Name of Beneficial Owner Certain Beneficial Owners | | | Amount and Nature of Beneficial Ownership | | | Percentage of Outstanding Shares | | ||||||
T. Rowe Price Associates, Inc. 100 E. Pratt Street Baltimore, MD 21202 | | | | | 1,842,360(12) | | | | | | 13% | | |
Endeavour Capital Advisors, Inc. 410 Greenwich Avenue Greenwich, CT 06830 | | | | | 1,061,608(13) | | | | | | 8.2% | | |
EJF Capital 2107 Wilson Blvd., Suite 240 Arlington, VA 22201 | | | | | 888,224(14) | | | | | | 6.2% | | |
FMR LLC 245 Summer Street Boston, MA 02210 | | | | | 733,912.00 (15) | | | | | | 5.4% | | |
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Exhibit | | | Description | | |
A | | | Bank Merger Agreement | | |
B | | | Form of Shareholder Support Agreement | | |
C | | | Form of Claims Letter | | |
D | | | Form of Restrictive Covenant Agreement | |
| Affordable Care Act | | | Section 3.3(j)(iii) | |
| Aggregate Merger Consideration | | | Section 1.5(a) | |
| Agreement | | | Parties | |
| |||||
Articles of Merger | | | Section 1.4 | | |
| Bank | | | Parties | |
| Bank Merger | | | Preamble | |
| Bank Merger Agreement | | | Preamble | |
| CARES Act | | | Section 3.3(h)(xi) | |
| Change in Recommendation | | | Section 4.12(b) | |
| Company Regulatory Agreement | | | Section 3.3(v) | |
| Covered Employees | | | Section 4.14(a) | |
| COVID-19 Measures | | | Section 3.3(h)(xi) | |
| CRA | | | Section 3.3(q) | |
| Dissenter Provisions | | | Section 2.3 | |
| Dissenting Shareholder | | | Section 2.3 | |
| Effective Time | | | Section 1.4 | |
| Exchange Agent | | | Section 2.1(a) | |
| Exchange Fund | | | Section 2.1(d) | |
| Excluded Shares | | | Section 1.5(e) | |
| IIPI | | | Section 3.3(r)(i) | |
| Indemnification Notice | | | Section 7.2(b) | |
| Indemnified Parties | | | Section 7.2(b) | |
| Indemnified Party | | | Section 4.15(a) | |
| |||||
| Loans | | | Section 3.3(n)(i) | |
| Material Adverse Effect | | | Section 3.2(b) | |
| Measuring Date | | | Section 7.1(a) | |
| Merger | | | Preamble | |
| Merger Consideration | | | Section 1.5(a) | |
| PPP | | | Section 3.3(h)(xii) | |
| Professional Certificates | | | Section 1.5(b) | |
| Professional Directors’ Recommendation | | | Section 3.3(b)(ii) | |
| Professional Disclosure Letter | | | Section 3.1 | |
| Professional Latest Balance Sheet | | | Section 3.3(d)(ii) | |
| Regulatory Consents | | | Section 4.8(b) | |
| Required Consents | | | Section 5.1(b) | |
| Sarbanes-Oxley Act | | | Section 3.3(d)(iv) | |
| |||||
| SBC | | | Parties | |
| SBC Preferred Stock | | | Section 3.4(c) | |
| SBC Regulatory Agreement | | | Section 3.4(f)(ii) | |
| Seacoast | | | Parties | |
| Shareholder Support Agreement | | | Preamble | |
| SNB | | | Parties | |
| Subordinated Notes | | | Section 4.24 | |
| Substitute SBC Option | | | Section 1.7(a) | |
| Surviving Bank | | | Section 1.2 | |
| Surviving Corporation | | | Section 1.1 | |
| Takeover Laws | | | Section 3.3(v) | |
| Seacoast: | | | Seacoast Banking Corporation of Florida | |
| | | | 815 Colorado Avenue | |
| | | | Stuart, Florida 34994 | |
| | | | Telecopy Number: (772) 288-6086 | |
| | | | Attention: Charles M. Shaffer | |
| Copy to Counsel (which shall not constitute notice): | | | Alston & Bird LLP | |
| 1201 West Peachtree Street | | |||
| | | | Atlanta, Georgia 30309 | |
| | | | Telecopy Number: (404) 881-7777 | |
| | | | Attention: Randolph A. Moore III | |
| Company: | | | | |
| | | | 5100 PGA Boulevard, Suite 101 | |
| | | | Palm Beach Gardens, FL 33418 | |
| | | | Attention: | |
| | | Michael C. Sontag | | |
| Copy to Counsel (which shall not constitute notice): | | | Gunster, Yoakley & Stewart, P.A. | |
| 777 S. Flagler Drive, Suite | | |||
| | | | West Palm Beach, Florida 33401 | |
| | | | Attention: | |
| | | | SEACOAST BANKING CORPORATION OF FLORIDA | | |||
| | | | By: | | | /s/ Charles M. Shaffer Charles M. Shaffer | |
| | | | SEACOAST NATIONAL BANK | | |||
| | | | By: | | | /s/ Charles M. Shaffer Charles M. Shaffer | |
| | | | | ||||
| | | | By: | | | /s/ Executive Vice President and | |
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| | | | By: | | | /s/ | |
By: | |
By: | |
| Name | | | Address | | | County | | | City | | | State | | | Zip | | | Service Type | |
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By: | |
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| SEACOAST BANKING CORPORATION OF FLORIDA | | | ||||||
| By: Name: Charles M. Shaffer Title: Chairman and Chief Executive Officer | | | ||||||
| EMPLOYEE: | | | ||||||
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| Name: | | | ||||||
| Address: | | | ||||||
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| BUYER: | | | | |
| SEACOAST BANKING CORPORATION OF FLORIDA | | | ||
| By: Name: Charles M. Shaffer Title: Chairman and Chief Executive Officer | | | ||
| DIRECTOR: | | | ||
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| | | December 31, 2021 | | | December 31, 2020 | | ||||||
ASSETS | | | | | | | | | | | | | |
Cash and due from banks | | | | $ | 38,469 | | | | | $ | 62,305 | | |
Interest earning deposits | | | | | 545,521 | | | | | | 129,291 | | |
Federal funds sold | | | | | 13,477 | | | | | | 25,376 | | |
Cash and cash equivalents | | | | | 597,467 | | | | | | 216,972 | | |
Securities available for sale, at fair value – taxable | | | | | 175,536 | | | | | | 65,110 | | |
Securities available for sale, at fair value – tax exempt | | | | | 18,765 | | | | | | 22,398 | | |
Securities held to maturity (fair value December 31, 2021, – $242, December 31, 2020, – $1,561) | | | | | 236 | | | | | | 1,547 | | |
Equity securities | | | | | 6,638 | | | | | | 6,005 | | |
Loans, net of allowance of $12,704 and $16,259 as of December 31, 2021, and December 31, 2020, respectively | | | | | 1,764,460 | | | | | | 1,641,422 | | |
Loans held for sale | | | | | 165 | | | | | | 1,270 | | |
Federal Home Loan Bank stock, at cost | | | | | 2,341 | | | | | | 3,229 | | |
Federal Reserve Bank stock, at cost | | | | | 5,426 | | | | | | 4,762 | | |
Accrued interest receivable | | | | | 5,272 | | | | | | 6,666 | | |
Premises and equipment, net | | | | | 3,871 | | | | | | 4,370 | | |
Bank owned life insurance | | | | | 38,485 | | | | | | 37,360 | | |
Deferred tax asset | | | | | 9,510 | | | | | | 10,525 | | |
Goodwill | | | | | 24,621 | | | | | | 24,621 | | |
Core deposit intangibles | | | | | 1,145 | | | | | | 1,422 | | |
Other assets | | | | | 10,173 | | | | | | 9,591 | | |
Total assets | | | | $ | 2,664,111 | | | | | $ | 2,057,270 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | | |
Demand – non-interest bearing | | | | $ | 674,003 | | | | | $ | 475,598 | | |
Demand – interest bearing | | | | | 310,362 | | | | | | 232,367 | | |
Money market and savings | | | | | 1,121,330 | | | | | | 715,003 | | |
Time deposits | | | | | 265,693 | | | | | | 236,575 | | |
Total deposits | | | | | 2,371,388 | | | | | | 1,659,543 | | |
Federal Home Loan Bank advances | | | | | 35,000 | | | | | | 40,000 | | |
Official Checks | | | | | 4,125 | | | | | | 4,447 | | |
Other borrowings | | | | | 10,000 | | | | | | 114,573 | | |
Subordinated debt | | | | | — | | | | | | 10,153 | | |
Accrued interest and other liabilities | | | | | 12,074 | | | | | | 12,989 | | |
Total liabilities | | | | | 2,432,587 | | | | | | 1,841,705 | | |
Stockholders’ equity | | | | | | | | | | | | | |
Preferred stock, 10,000,000 shares authorized, none issued | | | | | — | | | | | | — | | |
Class A Voting Common stock, $0.01 par value; authorized 50,000,000 shares, issued 14,393,750 and outstanding 13,446,400 shares as of December 31, 2021, and authorized 50,000,000 shares, issued 14,100,760 and outstanding 13,534,829 shares on December 31, 2020. | | | | | 144 | | | | | | 141 | | |
Class B Non-Voting Common stock, $0.01 par value; 10,000,000 shares authorized, none issued and outstanding on December 31, 2021, and December 31, 2020. | | | | | — | | | | | | — | | |
Treasury stock, at cost | | | | | (16,003) | | | | | | (9,209) | | |
Additional paid-in capital | | | | | 212,012 | | | | | | 208,995 | | |
Retained earnings | | | | | 36,120 | | | | | | 14,756 | | |
Accumulated other comprehensive income (loss) | | | | | (749) | | | | | | 882 | | |
Total stockholders’ equity | | | | | 231,524 | | | | | | 215,565 | | |
Total liabilities and stockholders’ equity | | | | $ | 2,664,111 | | | | | $ | 2,057,270 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Interest income | | | | | | | | | | | | | |
Loans, including fees | | | | $ | 76,912 | | | | | $ | 66,296 | | |
Investment securities – taxable | | | | | 816 | | | | | | 835 | | |
Investment securities – tax exempt | | | | | 735 | | | | | | 642 | | |
Dividend income on restricted stock | | | | | 397 | | | | | | 414 | | |
Other | | | | | 761 | | | | | | 912 | | |
Total interest income | | | | | 79,621 | | | | | | 69,099 | | |
Interest expense | | | | | | | | | | | | | |
Deposits | | | | | 5,857 | | | | | | 6,777 | | |
Federal Home Loan Bank advances | | | | | 751 | | | | | | 964 | | |
Subordinated debt | | | | | 378 | | | | | | — | | |
Other borrowings | | | | | 327 | | | | | | 1,305 | | |
Total interest expense | | | | | 7,313 | | | | | | 9,046 | | |
Net interest income | | | | | 72,308 | | | | | | 60,053 | | |
Provision for loan losses | | | | | 4,740 | | | | | | 10,017 | | |
Net interest income after provision for loan losses | | | | | 67,568 | | | | | | 50,036 | | |
Non-interest income | | | | | | | | | | | | | |
Service charges on deposit accounts | | | | | 2,741 | | | | | | 1,196 | | |
Income from bank owned life insurance | | | | | 1,125 | | | | | | 502 | | |
SBA origination fees | | | | | 260 | | | | | | 114 | | |
Swap fee income | | | | | 909 | | | | | | 1,026 | | |
Loans held for sale income | | | | | 551 | | | | | | 808 | | |
Gain on sale and call of securities | | | | | 39 | | | | | | 37 | | |
Other | | | | | 562 | | | | | | 623 | | |
Total non-interest income | | | | | 6,187 | | | | | | 4,306 | | |
Non-interest expense | | | | | | | | | | | | | |
Salaries and employee benefits | | | | | 29,277 | | | | | | 25,579 | | |
Occupancy and equipment | | | | | 3,929 | | | | | | 4,292 | | |
Data processing | | | | | 1,182 | | | | | | 1,276 | | |
Marketing | | | | | 635 | | | | | | 545 | | |
Professional fees | | | | | 2,830 | | | | | | 2,373 | | |
Acquisition expenses | | | | | 684 | | | | | | 3,328 | | |
Regulatory assessments | | | | | 1,681 | | | | | | 1,112 | | |
Other | | | | | 7,048 | | | | | | 5,115 | | |
Total non-interest expense | | | | | 47,266 | | | | | | 43,620 | | |
Income before income taxes | | | | | 26,489 | | | | | | 10,722 | | |
Income tax provision | | | | | 5,125 | | | | | | 2,417 | | |
Net income | | | | | 21,364 | | | | | | 8,305 | | |
Earnings per share: | | | | | | | | | | | | | |
Basic | | | | $ | 1.61 | | | | | $ | 0.69 | | |
Diluted | | | | $ | 1.54 | | | | | $ | 0.67 | | |
Other comprehensive income: | | | | | | | | | | | | | |
Unrealized holding gain (loss) on securities available for sale | | | | | (2,161) | | | | | | 1,265 | | |
Tax effect | | | | | 530 | | | | | | (310) | | |
Other comprehensive gain (loss), net of tax | | | | | (1,631) | | | | | | 955 | | |
Comprehensive income | | | | $ | 19,733 | | | | | $ | 9,260 | | |
| | | Common Stock | | | Treasury Stock | | | Additional Paid-in Capital | | | Retained Earnings | | | Accumulated Other Comprehensive Income (Loss) | | | Total | | ||||||||||||||||||||||||
| | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||||||
Balance on January 1, 2020 | | | | | 5,867,446 | | | | | $ | 60 | | | | | $ | (4,155) | | | | | $ | 77,019 | | | | | $ | 6,451 | | | | | $ | (73) | | | | | $ | 79,302 | | |
Issuance of common stock, net of issuance cost | | | | | 3,717,328 | | | | | | 39 | | | | | | — | | | | | | 60,928 | | | | | | — | | | | | | — | | | | | | 60,967 | | |
Marquis Bancorp (MBI) acquisition | | | | | 4,227,816 | | | | | | 42 | | | | | | — | | | | | | 69,993 | | | | | | — | | | | | | — | | | | | | 70,035 | | |
Employee stock purchase plan | | | | | 7,194 | | | | | | — | | | | | | — | | | | | | 106 | | | | | | — | | | | | | — | | | | | | 106 | | |
Stock based compensation | | | | | 35,976 | | | | | | — | | | | | | — | | | | | | 959 | | | | | | — | | | | | | — | | | | | | 959 | | |
Treasury stock | | | | | (320,931) | | | | | | — | | | | | | (5,054) | | | | | | (10) | | | | | | — | | | | | | — | | | | | | (5,064) | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 8,305 | | | | | | — | | | | | | 8,305 | | |
Other comprehensive income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 955 | | | | | | 955 | | |
Balance on December 31, 2020. | | | | | 13,534,829 | | | | | $ | 141 | | | | | $ | (9,209) | | | | | $ | 208,995 | | | | | $ | 14,756 | | | | | $ | 882 | | | | | $ | 215,565 | | |
Balance on January 1, 2021 | | | | | 13,534,829 | | | | | $ | 141 | | | | | $ | (9,209) | | | | | $ | 208,995 | | | | | $ | 14,756 | | | | | $ | 882 | | | | | $ | 215,565 | | |
Issuance of common stock, net of issuance cost | | | | | 152,598 | | | | | | 2 | | | | | | — | | | | | | 1,543 | | | | | | — | | | | | | — | | | | | | 1,545 | | |
Employee stock purchase plan | | | | | 1,851 | | | | | | — | | | | | | — | | | | | | 34 | | | | | | — | | | | | | — | | | | | | 34 | | |
Stock based compensation | | | | | 138,541 | | | | | | 1 | | | | | | — | | | | | | 1,451 | | | | | | — | | | | | | — | | | | | | 1,452 | | |
Treasury stock | | | | | (381,419) | | | | | | — | | | | | | (6,794) | | | | | | (11) | | | | | | — | | | | | | — | | | | | | (6,805) | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 21,364 | | | | | | — | | | | | | 21,364 | | |
Other comprehensive income (loss) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,631) | | | | | | (1,631) | | |
Balance on December 31, 2021. | | | | | 13,446,400 | | | | | $ | 144 | | | | | $ | (16,003) | | | | | $ | 212,012 | | | | | $ | 36,120 | | | | | $ | (749) | | | | | $ | 231,524 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net income | | | | $ | 21,364 | | | | | $ | 8,305 | | |
Adjustments to reconcile net income to net cash from operating activities | | | | | | | | | | | | | |
Provision for loan losses | | | | | 4,740 | | | | | | 10,017 | | |
Amortization of purchase accounting adjustments | | | | | (6,082) | | | | | | (7,466) | | |
Deferred income tax provision (benefit) | | | | | 1,258 | | | | | | (1,898) | | |
Depreciation and amortization | | | | | 1,358 | | | | | | 1,352 | | |
Loss (gain) on sale of securities | | | | | 78 | | | | | | (4) | | |
Gain on call of securities | | | | | (39) | | | | | | (33) | | |
Equity unrealized change in market value | | | | | 167 | | | | | | (34) | | |
Net amortization of securities | | | | | 1,439 | | | | | | 3,331 | | |
Net amortization of deferred loan fees | | | | | (8,086) | | | | | | (4,358) | | |
Proceeds from sales of loans held for sale | | | | | 1,105 | | | | | | — | | |
Income from Bank-owned life insurance | | | | | (1,125) | | | | | | (502) | | |
Loss on disposal of premises and equipment | | | | | 140 | | | | | | — | | |
Employee stock purchase plan | | | | | 34 | | | | | | 106 | | |
Stock compensation | | | | | 1,452 | | | | | | 959 | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Accrued interest receivable | | | | | 1,394 | | | | | | (2,643) | | |
Other assets | | | | | (582) | | | | | | 3,454 | | |
Official checks, accrued interest, interest payable and other liabilities | | | | | (627) | | | | | | (3,416) | | |
Net cash provided by operating activities | | | | | 17,988 | | | | | | 7,170 | | |
Cash flows from investing activities | | | | | | | | | | | | | |
Proceeds from maturities and paydowns of securities available for sale | | | | | 24,020 | | | | | | 17,651 | | |
Proceeds from calls of securities available for sale | | | | | 7,357 | | | | | | 9,132 | | |
Proceeds from paydowns of securities held to maturity | | | | | 1,303 | | | | | | 122 | | |
Purchase of securities available for sale | | | | | (141,800) | | | | | | (62,795) | | |
Proceeds from sale of securities available for sale | | | | | — | | | | | | 1,735 | | |
Purchase of equity securities | | | | | (800) | | | | | | (5,000) | | |
Loans originations, net of principal repayments | | | | | (127,998) | | | | | | (341,850) | | |
Proceeds from sale of loans | | | | | 194 | | | | | | 10,985 | | |
Redemption of Federal Reserve Bank stock | | | | | (664) | | | | | | (2,688) | | |
Purchase of Federal Home Loan Bank Stock | | | | | — | | | | | | (235) | | |
Proceeds from maturities of Federal Home Loan Bank Stock | | | | | 888 | | | | | | — | | |
Purchase of Bank-owned life insurance | | | | | — | | | | | | (20,000) | | |
Purchases of premises and equipment | | | | | (989) | | | | | | (554) | | |
Proceeds from acquisition | | | | | — | | | | | | 26,860 | | |
Net cash used in investing activities | | | | | (238,489) | | | | | | (366,637) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Net increase in deposits | | | | | 712,614 | | | | | | 270,227 | | |
Proceeds from issuance of stock, net of issuance costs | | | | | 1,545 | | | | | | 60,967 | | |
Purchase of treasury stock | | | | | (6,805) | | | | | | (5,064) | | |
Proceeds from Federal Home Loan Bank advances | | | | | — | | | | | | 10,000 | | |
Repayments of Federal Home Loan advances | | | | | (5,000) | | | | | | (50,000) | | |
Repayment of subordinated notes payable | | | | | (10,000) | | | | | | — | | |
Proceeds from line of credit | | | | | 10,000 | | | | | | — | | |
Repayment of line of credit | | | | | — | | | | | | (9,999) | | |
Proceeds from PPPLF advances | | | | | — | | | | | | 225,004 | | |
Repayments of PPPLF advances | | | | | (101,358) | | | | | | (123,646) | | |
Net cash provided by financing activities | | | | | 600,996 | | | | | | 377,489 | | |
Increase in cash and cash equivalents | | | | | 380,495 | | | | | | 18,022 | | |
Cash and cash equivalents at beginning of period | | | | | 216,972 | | | | | | 198,950 | | |
Cash and cash equivalents at end of period | | | | $ | 597,467 | | | | | $ | 216,972 | | |
Supplemental cash flow information: | | | | | | | | | | | | | |
Cash paid during the period for interest | | | | $ | 8,473 | | | | | $ | 10,556 | | |
Cash paid during the period for taxes | | | | $ | 5,608 | | | | | | 3,018 | | |
Supplemental noncash disclosures: | | | | | | | | | | | | | |
Recognition of participation loans as secured borrowings | | | | $ | — | | | | | $ | 13,215 | | |
Lease liabilities arising from obtaining right of use assets | | | | $ | 179 | | | | | $ | 2,027 | | |
Total assets acquired | | | | $ | — | | | | | $ | 583,797 | | |
Total liabilities assumed | | | | $ | — | | | | | $ | 538,383 | | |
| | | 2021 | | | 2020 | | ||||||
ASSETS | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 83,710 | | | | | $ | 64,917 | | |
Interest-bearing time deposits in other banks | | | | | 1,746 | | | | | | 996 | | |
Debt securities available for sale | | | | | 258,738 | | | | | | 232,861 | | |
Federal Home Loan Bank stock, at cost (restricted) | | | | | 1,063 | | | | | | 1,308 | | |
Loans, net | | | | | 658,038 | | | | | | 513,523 | | |
Bank owned life insurance | | | | | 23,435 | | | | | | 19,058 | | |
Deferred tax asset, net | | | | | 4,590 | | | | | | 3,438 | | |
Premises and equipment, net | | | | | 6,333 | | | | | | 6,149 | | |
Core deposit intangible, net | | | | | 157 | | | | | | 244 | | |
Goodwill | | | | | 3,309 | | | | | | 3,309 | | |
Accrued interest receivable | | | | | 5,074 | | | | | | 5,617 | | |
Other assets | | | | | 1,166 | | | | | | 1,016 | | |
TOTAL ASSETS | | | | $ | 1,047,359 | | | | | $ | 852,436 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Noninterest-bearing demand deposits | | | | $ | 378,273 | | | | | $ | 263,648 | | |
Interest-bearing demand deposits | | | | | 29,637 | | | | | | 29,520 | | |
Savings, NOW and money-market deposits | | | | | 428,776 | | | | | | 362,400 | | |
Time deposits | | | | | 89,315 | | | | | | 82,743 | | |
Total deposits | | | | | 926,001 | | | | | | 738,311 | | |
LONG-TERM DEBT (NOTE 12) | | | | | | | | | | | | | |
Principal amount | | | | | 12,250 | | | | | | 12,250 | | |
Less unamortized debt issuance costs | | | | | (398) | | | | | | (443) | | |
LONG-TERM DEBT, less unamortized debt issuance costs | | | | | 11,852 | | | | | | 11,807 | | |
Federal Home Loan Bank advances | | | | | 15,000 | | | | | | 15,000 | | |
Advance payments by borrowers for taxes and insurance | | | | | 1,638 | | | | | | 668 | | |
Accrued interest payable and other liabilities | | | | | 2,948 | | | | | | 2,444 | | |
TOTAL LIABILITIES | | | | | 957,439 | | | | | | 768,230 | | |
COMMITMENTS AND CONTINGENCIES (NOTE 18) | | | | | | | | | | | | | |
STOCKHOLDERS’ EQUITY: | | | | | | | | | | | | | |
Apollo Bancshares, Inc. stockholders’ equity: | | | | | | | | | | | | | |
Preferred stock, $0.01 par value, 50,000,000 shares authorized; none issued or outstanding | | | | | — | | | | | | — | | |
Common stock, $0.01 par value, 100,000,000 shares authorized; 3,766,412 shares issued and outstanding | | | | | 38 | | | | | | 38 | | |
Additional paid-in capital | | | | | 44,141 | | | | | | 44,141 | | |
Retained earnings | | | | | 31,438 | | | | | | 24,342 | | |
Accumulated other comprehensive income (loss), net of tax effect | | | | | (1,301) | | | | | | 991 | | |
Total Apollo Bancshares, Inc. stockholders’ equity | | | | | 74,316 | | | | | | 69,512 | | |
Noncontrolling interest | | | | | 15,604 | | | | | | 14,694 | | |
TOTAL STOCKHOLDERS’ EQUITY | | | | | 89,920 | | | | | | 84,206 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | $ | 1,047,359 | | | | | $ | 852,436 | | |
| | | 2021 | | | 2020 | | ||||||
INTEREST AND DIVIDEND INCOME | | | | | | | | | | | | | |
Loans, including fees | | | | $ | 25,631 | | | | | $ | 24,281 | | |
Debt securities | | | | | 3,602 | | | | | | 3,159 | | |
Interest-bearing deposits in other banks | | | | | 123 | | | | | | 370 | | |
Other | | | | | 63 | | | | | | 82 | | |
TOTAL INTEREST AND DIVIDEND INCOME | | | | | 29,419 | | | | | | 27,892 | | |
INTEREST EXPENSE | | | | | | | | | | | | | |
Deposits | | | | | 1,969 | | | | | | 4,887 | | |
Federal Home Loan Bank advances | | | | | 253 | | | | | | 254 | | |
Long-term debt | | | | | 717 | | | | | | 130 | | |
TOTAL INTEREST EXPENSE | | | | | 2,939 | | | | | | 5,271 | | |
NET INTEREST INCOME | | | | | 26,480 | | | | | | 22,621 | | |
(REVERSAL OF) PROVISION FOR LOAN LOSSES | | | | | (100) | | | | | | 1,300 | | |
NET INTEREST INCOME AFTER (REVERSAL OF) PROVISION FOR LOAN LOSSES | | | | | 26,580 | | | | | | 21,321 | | |
NONINTEREST INCOME | | | | | | | | | | | | | |
Fees for customer services | | | | | 2,164 | | | | | | 1,947 | | |
Bank owned life insurance income, net | | | | | 537 | | | | | | 313 | | |
Net gain on sales of debt securities available for sale (includes $252 and $807 accumulated other comprehensive income reclassifications for unrealized net gains on available-for-sale debt securities, respectively) | | | | | 252 | | | | | | 807 | | |
Net gain on sales of foreclosed assets | | | | | 3 | | | | | | 15 | | |
Other | | | | | 77 | | | | | | 408 | | |
TOTAL NONINTEREST INCOME | | | | | 3,033 | | | | | | 3,490 | | |
NONINTEREST EXPENSES | | | | | | | | | | | | | |
Salaries and employee benefits | | | | | 10,890 | | | | | | 9,598 | | |
Occupancy and equipment | | | | | 2,921 | | | | | | 2,732 | | |
Data processing | | | | | 1,813 | | | | | | 1,616 | | |
Professional fees | | | | | 991 | | | | | | 785 | | |
Servicing fees | | | | | 255 | | | | | | 343 | | |
Federal Deposit Insurance Corporation | | | | | 295 | | | | | | 422 | | |
Amortization of core deposit intangible | | | | | 87 | | | | | | 111 | | |
Directors’ fees | | | | | 514 | | | | | | 523 | | |
Other general and administrative | | | | | 1,622 | | | | | | 1,846 | | |
TOTAL NONINTEREST EXPENSES | | | | | 19,388 | | | | | | 17,976 | | |
NET INCOME BEFORE EXPENSE FROM INCOME TAXES | | | | | 10,225 | | | | | | 6,835 | | |
EXPENSE FROM INCOME TAXES (includes $62 and $198 income tax expense from reclassification items, respectively) | | | | | 1,804 | | | | | | 1,572 | | |
NET INCOME | | | | | 8,421 | | | | | | 5,263 | | |
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | | | | | (1,325) | | | | | | (973) | | |
NET INCOME ATTRIBUTABLE TO APOLLO BANCSHARES, INC. | | | | $ | 7,096 | | | | | $ | 4,290 | | |
| 2021 | | | | | | | | | | | | | |
| NET INCOME | | | | | | | | | | $ | 8,421 | | |
| OTHER COMPREHENSIVE LOSS, NET OF TAX: | | | | | | | | | | | | | |
| Unrealized losses on debt securities: | | | | | | | | | | | | | |
| Unrealized holding losses arising during period (net of tax effect of $830) | | | | $ | (2,517) | | | | | | | | |
| Less: reclassification adjustment for gains included in net income (net of tax effect of $62) | | | | | (190) | | | | | | (2,707) | | |
| COMPREHENSIVE INCOME | | | | | | | | | | | 5,714 | | |
| LESS: COMPREHENSIVE INCOME ATTRIBUTABLE TO THE NONCONTROLLING INTEREST | | | | | | | | | | | (910) | | |
| COMPREHENSIVE INCOME ATTRIBUTABLE TO APOLLO BANCSHARES, INC. | | | | | | | | | | $ | 4,804 | | |
| 2020 | | | | | | | | | | | | | |
| NET INCOME | | | | | | | | | | $ | 5,263 | | |
| OTHER COMPREHENSIVE INCOME, NET OF TAX: | | | | | | | | | | | | | |
| Unrealized gains on debt securities: | | | | | | | | | | | | | |
| Unrealized holding gains arising during period (net of tax effect of $1,055) | | | | $ | 3,248 | | | | | | | | |
| Less: reclassification adjustment for gains included in net income (net of tax effect of $198) | | | | | (609) | | | | | | 2,639 | | |
| COMPREHENSIVE INCOME | | | | | | | | | | | 7,902 | | |
| LESS: COMPREHENSIVE INCOME ATTRIBUTABLE TO THE NONCONTROLLING INTEREST | | | | | | | | | | | (1,423) | | |
| COMPREHENSIVE INCOME ATTRIBUTABLE TO APOLLO BANCSHARES, INC. | | | | | | | | | | $ | 6,479 | | |
| | | Common Stock | | | Additional Paid-in Capital | | | Retained Earnings | | | Accumulated Other Comprehensive Income (Loss), net of tax effect | | | Noncontrolling Interest | | | Total Stockholders’ Equity | | ||||||||||||||||||||||||
| Shares | | | Amount | | ||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2020 | | | | | 3,766,412 | | | | | $ | 38 | | | | | $ | 43,955 | | | | | $ | 20,052 | | | | | $ | (1,198) | | | | | $ | 13,271 | | | | | $ | 76,118 | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | 4,290 | | | | | | — | | | | | | 973 | | | | | | 5,263 | | |
Stock Based Compensation | | | | | — | | | | | | — | | | | | | 186 | | | | | | — | | | | | | — | | | | | | — | | | | | | 186 | | |
Other Comprehensive Income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,189 | | | | | | 450 | | | | | | 2,639 | | |
Balance at December 31, 2020 | | | | | 3,766,412 | | | | | | 38 | | | | | | 44,141 | | | | | | 24,342 | | | | | | 991 | | | | | | 14,694 | | | | | | 84,206 | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | 7,096 | | | | | | — | | | | | | 1,325 | | | | | | 8,421 | | |
Other Comprehensive Loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,292) | | | | | | (415) | | | | | | (2,707) | | |
Balance at December 31, 2021 | | | | | 3,766,412 | | | | | $ | 38 | | | | | $ | 44,141 | | | | | $ | 31,438 | | | | | $ | (1,301) | | | | | $ | 15,604 | | | | | $ | 89,920 | | |
| | | 2021 | | | 2020 | | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | | | |
Net income | | | | $ | 8,421 | | | | | $ | 5,263 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | |
(Reversal of) provision for loan losses | | | | | (100) | | | | | | 1,300 | | |
Net amortization of debt securities | | | | | 2,511 | | | | | | 1,042 | | |
Net accretion of deferred loan fees | | | | | (1,112) | | | | | | (576) | | |
Net amortization of loan premiums | | | | | 203 | | | | | | 62 | | |
Net accretion of discount on acquired loans | | | | | (101) | | | | | | (133) | | |
Amortization of long-term debt issuance costs | | | | | 45 | | | | | | 8 | | |
Depreciation and amortization of premises and equipment | | | | | 367 | | | | | | 301 | | |
Amortization of core deposit intangible | | | | | 87 | | | | | | 111 | | |
Net realized gain on sales of debt securities available for sale | | | | | (252) | | | | | | (807) | | |
Net realized gain on sales of foreclosed assets | | | | | (3) | | | | | | (15) | | |
Bank owned life insurance income, net | | | | | (537) | | | | | | (313) | | |
Deferred income taxes | | | | | (260) | | | | | | (427) | | |
Stock based compensation | | | | | — | | | | | | 186 | | |
Net change in operating assets and liabilities: | | | | | | | | | | | | | |
Accrued interest receivable | | | | | 543 | | | | | | (2,427) | | |
Other assets | | | | | (290) | | | | | | 541 | | |
Accrued interest payable and other liabilities | | | | | 504 | | | | | | (38) | | |
NET CASH PROVIDED BY OPERATING ACTIVITIES | | | | | 10,026 | | | | | | 4,078 | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | | | |
Net change in interest-bearing time deposits in other banks | | | | | (750) | | | | | | 250 | | |
Purchase of life insurance | | | | | (3,840) | | | | | | (5,140) | | |
Activity in debt securities available for sale: | | | | | | | | | | | | | |
Sales | | | | | 34,962 | | | | | | 59,274 | | |
Maturities, prepayments and calls | | | | | 46,383 | | | | | | 24,649 | | |
Purchases | | | | | (113,080) | | | | | | (180,229) | | |
Net change in Federal Home Loan Bank stock (restricted) | | | | | 245 | | | | | | (39) | | |
Loan principal originations, net | | | | | (143,405) | | | | | | (9,754) | | |
Proceeds from sale of foreclosed asset | | | | | 143 | | | | | | 453 | | |
Additions to premises and equipment | | | | | (551) | | | | | | (269) | | |
NET CASH USED IN INVESTING ACTIVITIES | | | | | (179,893) | | | | | | (110,805) | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | | | |
Net change in deposits | | | | | 187,690 | | | | | | 84,895 | | |
Net proceeds from issuance of long-term debt | | | | | — | | | | | | 11,799 | | |
Net change in advance payments by borrowers for taxes and insurance | | | | | 970 | | | | | | (469) | | |
NET CASH PROVIDED BY FINANCING ACTIVITIES | | | | | 188,660 | | | | | | 96,225 | | |
NET CHANGE IN CASH AND CASH EQUIVALENTS | | | | | 18,793 | | | | | | (10,502) | | |
CASH AND CASH EQUIVALENTS, beginning of year | | | | | 64,917 | | | | | | 75,419 | | |
CASH AND CASH EQUIVALENTS, end of year | | | | $ | 83,710 | | | | | $ | 64,917 | | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | | | | | | | | | | | | | |
Transfer of loan to foreclosed asset | | | | $ | — | | | | | $ | 355 | | |
Interest paid on deposits and borrowed funds | | | | $ | 3,102 | | | | | $ | 5,507 | | |
Cash paid for income taxes | | | | $ | 2,340 | | | | | $ | 1,480 | | |
| ASU 2019-12, Income Taxes (Topic 740) | | |||
| Description | | | In December 2019, FASB issued guidance which simplifies the accounting for income taxes by removing multiple exceptions to the general principals in Topic 740. | |
| Date of Adoption | | | The standard is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020. | |
| Effect on the Consolidated Financial Statements | | | The new guidance did not materially impact the Company’s Consolidated Financial Statements or disclosures. | |
| ASU 2020-04, Financial Instruments — Reference Rate Reform (Topic 848) | | |||
| Description | | | In March 2020, FASB released ASU 2020-4 — Reference Rate Reform (Topic 848), which provides optional guidance to ease the accounting burden in accounting for, or recognizing the effects from, reference rate reform on financial reporting. The new standard is a result of the London Interbank Offered Rate (“LIBOR”) likely being discontinued as an available benchmark rate. The standard is elective and provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, or other transactions that reference LIBOR, or another reference rate expected to be discontinued. | |
| Date of Adoption | | | The amendments in the update are effective for all entities between March 12, 2020, and December 31, 2022. The Company adopted this standard on January 1, 2021. | |
| Effect on the Consolidated Financial Statements | | | The Company has identified its products that utilize LIBOR and has implemented enhanced fallback language to facilitate the transition to alternative reference rates. The new guidance did not materially impact the Company’s Consolidated Financial Statements or disclosures. | |
| | | Year Ended December 31, | | |||||||||
(Dollar amounts in thousands, except per share data) | | | 2021 | | | 2020 | | ||||||
Basic earnings per share: | | | | | | | | | | | | | |
Net income | | | | $ | 21,364 | | | | | $ | 8,305 | | |
Total weighted average common stock outstanding | | | | | 13,308,682 | | | | | | 12,042,477 | | |
Net income per share | | | | $ | 1.61 | | | | | $ | 0.69 | | |
Diluted earnings per share: | | | | | | | | | | | | | |
Net income | | | | $ | 21,364 | | | | | $ | 8,305 | | |
Total weighted average common stock outstanding | | | | | 13,308,682 | | | | | | 12,042,477 | | |
Add: dilutive effect of employee restricted stock and options | | | | | 592,168 | | | | | | 390,040 | | |
Total weighted average diluted stock outstanding | | | | | 13,900,850 | | | | | | 12,432,517 | | |
Net income per share | | | | $ | 1.54 | | | | | $ | 0.67 | | |
December 31, 2021 (Dollars in thousands) | | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
Available for sale – taxable | | | | | | | | | | | | | | | | | | | | | | | | | |
Small Business Administration loan pools | | | | $ | 40,368 | | | | | $ | 38 | | | | | $ | (472) | | | | | $ | 39,934 | | |
Mortgage-backed securities | | | | | 131,273 | | | | | | 70 | | | | | | (1,240) | | | | | | 130,103 | | |
United States agency obligations | | | | | 3,939 | | | | | | 54 | | | | | | (7) | | | | | | 3,986 | | |
Corporate bonds | | | | | 1,500 | | | | | | 13 | | | | | | — | | | | | | 1,513 | | |
Total available for sale – taxable | | | | $ | 177,080 | | | | | $ | 175 | | | | | $ | (1,719) | | | | | $ | 175,536 | | |
Available for sale – tax exempt | | | | | | | | | | | | | | | | | | | | | | | | | |
Community Development District bonds | | | | | 17,163 | | | | | | 512 | | | | | | (1) | | | | | | 17,674 | | |
Municipals | | | | | 1,051 | | | | | | 40 | | | | | | — | | | | | | 1,091 | | |
Total available for sale – tax exempt | | | | $ | 18,214 | | | | | $ | 552 | | | | | $ | (1) | | | | | $ | 18,765 | | |
| | | Amortized Cost | | | Gross Unrecognized Gains | | | Gross Unrecognized Losses | | | Fair Value | | ||||||||||||
Held to Maturity | | | | | | | | | | | | | | | | | | | | | | | | | |
Mortgage-backed securities | | | | $ | 236 | | | | | $ | 6 | | | | | $ | — | | | | | $ | 242 | | |
Total Held to Maturity | | | | $ | 236 | | | | | $ | 6 | | | | | $ | — | | | | | $ | 242 | | |
| | | Amortized Cost | | | Gross Unrecognized Gains | | | Gross Unrecognized Losses | | | Fair Value | | ||||||||||||
Equity | | | | | | | | | | | | | | | | | | | | | | | | | |
Mutual Funds | | | | $ | 5,838 | | | | | $ | — | | | | | $ | — | | | | | $ | 5,838 | | |
Other equity securities | | | | | 800 | | | | | $ | — | | | | | | — | | | | | | 800 | | |
Total Equity | | | | $ | 6,638 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,638 | | |
December 31, 2020 (Dollars in thousands) | | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
Available for sale – taxable | | | | | | | | | | | | | | | | | | | | | | | | | |
Small Business Administration loan pools | | | | $ | 30,678 | | | | | $ | 77 | | | | | $ | (199) | | | | | $ | 30,556 | | |
Mortgage-backed securities | | | | | 28,514 | | | | | | 438 | | | | | | (30) | | | | | | 28,922 | | |
United States agency obligations | | | | | 3,000 | | | | | | 122 | | | | | | — | | | | | | 3,122 | | |
Corporate bonds | | | | | 2,501 | | | | | | 9 | | | | | | — | | | | | | 2,510 | | |
Total available for sale – taxable | | | | $ | 64,693 | | | | | $ | 646 | | | | | $ | (229) | | | | | $ | 65,110 | | |
Available for sale – tax exempt | | | | | | | | | | | | | | | | | | | | | | | | | |
Community Development District bonds | | | | $ | 20,582 | | | | | $ | 717 | | | | | $ | — | | | | | $ | 21,299 | | |
Municipals | | | | | 1,064 | | | | | | 35 | | | | | | — | | | | | | 1,099 | | |
Total available for sale – tax exempt | | | | $ | 21,646 | | | | | $ | 752 | | | | | $ | — | | | | | $ | 22,398 | | |
| | | Amortized Cost | | | Gross Unrecognized Gains | | | Gross Unrecognized Losses | | | Fair Value | | ||||||||||||
Held to Maturity | | | | | | | | | | | | | | | | | | | | | | | | | |
Mortgage-backed securities | | | | $ | 345 | | | | | $ | 14 | | | | | $ | — | | | | | $ | 359 | | |
United States Treasury | | | | | 202 | | | | | | — | | | | | | — | | | | | | 202 | | |
Foreign Bonds | | | | | 1,000 | | | | | | — | | | | | | — | | | | | | 1,000 | | |
Total Held to Maturity | | | | $ | 1,547 | | | | | $ | 14 | | | | | $ | — | | | | | $ | 1,561 | | |
| | | Amortized Cost | | | Gross Unrecognized Gains | | | Gross Unrecognized Losses | | | Fair Value | | ||||||||||||
Equity | | | | | | | | | | | | | | | | | | | | | | | | | |
Mutual Funds | | | | $ | 6,005 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,005 | | |
Total Equity | | | | $ | 6,005 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,005 | | |
| | | December 31, 2021 | | |||||||||
(Dollars in thousands) | | | Amortized Cost | | | Fair Value | | ||||||
Available for sale | | | | | | | | | | | | | |
Due in one year or less | | | | $ | 1,634 | | | | | $ | 1,648 | | |
Due after one year through five years | | | | | 19,766 | | | | | | 20,358 | | |
Due after five years through ten years | | | | | 2,253 | | | | | | 2,258 | | |
Due after ten years | | | | | — | | | | | | — | | |
Subtotal | | | | $ | 23,653 | | | | | $ | 24,264 | | |
Small Business Administration loan pools | | | | $ | 40,368 | | | | | $ | 39,934 | | |
Mortgage-backed securities | | | | | 131,273 | | | | | | 130,103 | | |
Total available for sale | | | | $ | 195,294 | | | | | $ | 194,301 | | |
Held to maturity | | | | | | | | | | | | | |
Mortgage-backed securities | | | | $ | 236 | | | | | $ | 242 | | |
Total held to maturity | | | | $ | 236 | | | | | $ | 242 | | |
| | | 2021 | | | 2020 | | ||||||
Beginning balance | | | | $ | 12,221 | | | | | $ | 9,238 | | |
Advances | | | | | 6,073 | | | | | | 3,203 | | |
Repayments | | | | | (11,469) | | | | | | (220) | | |
Ending balance | | | | $ | 6,825 | | | | | $ | 12,221 | | |
| | | Less Than 12 Months | | | 12 Months or Longer | | | Total | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Fair Value | | | Unrealized Losses | | | Fair Value | | | Unrealized Losses | | | Fair Value | | | Unrealized Losses | | ||||||||||||||||||
December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Available for sale – taxable | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Small Business Administration loan pools | | | | $ | 17,428 | | | | | $ | (336) | | | | | $ | 14,872 | | | | | $ | (136) | | | | | $ | 32,300 | | | | | $ | (472) | | |
Mortgage-backed securities | | | | | 109,621 | | | | | | (1,167) | | | | | | 1,710 | | | | | | (73) | | | | | | 111,331 | | | | | | (1,240) | | |
United States agency obligations | | | | | 1,930 | | | | | | (7) | | | | | | — | | | | | | — | | | | | | 1,930 | | | | | | (7) | | |
Total available for sale – taxable | | | | $ | 128,979 | | | | | $ | (1,510) | | | | | $ | 16,582 | | | | | $ | (209) | | | | | $ | 145,561 | | | | | $ | (1,719) | | |
Available for sale – tax exempt | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Community Development District bonds | | | | | 809 | | | | | | (1) | | | | | | — | | | | | | — | | | | | $ | 809 | | | | | $ | (1) | | |
Total available for sale – tax exempt | | | | $ | 809 | | | | | $ | (1) | | | | | $ | — | | | | | $ | — | | | | | $ | 809 | | | | | $ | (1) | | |
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Available for sale – taxable | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Small Business Administration loan pools | | | | $ | 18,849 | | | | | $ | (133) | | | | | $ | 8,945 | | | | | $ | (66) | | | | | $ | 27,794 | | | | | $ | (199) | | |
Mortgage-backed securities | | | | | 5,839 | | | | | | — | | | | | | 2,510 | | | | | | (30) | | | | | | 8,349 | | | | | | (30) | | |
United States agency obligations | | | | | 227 | | | | | | — | | | | | | — | | | | | | — | | | | | | 227 | | | | | | — | | |
Total available for sale – taxable | | | | $ | 24,915 | | | | | $ | (133) | | | | | $ | 11,455 | | | | | $ | (96) | | | | | $ | 36,370 | | | | | $ | (229) | | |
| | | For Year Ended December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Interest earned on related party loans | | | | $ | 333 | | | | | $ | 454 | | |
Interest paid on related party deposits | | | | $ | 101 | | | | | $ | 238 | | |
Fee earned on related party standby letters of credit | | | | $ | 2 | | | | | $ | 2 | | |
| | | 2021 | | | 2020 | |
Loans | | | 4.50% – 5.00% | | | 1.00% – 5.00% | |
Deposits | | | 0.00 – 0.60% | | | 0.00 – 1.25% | |
(Dollars in thousands) | | | 2021 | | | 2020 | | ||||||
Loans held for investment: | | | | | | | | | | | | | |
Commercial real estate | | | | $ | 902,654 | | | | | $ | 777,025 | | |
Residential real estate | | | | | 377,511 | | | | | | 379,534 | | |
Commercial (Non-PPP) | | | | | 325,415 | | | | | | 206,095 | | |
Commercial (PPP) | | | | | 58,615 | | | | | | 185,748 | | |
Construction and land development | | | | | 91,520 | | | | | | 99,590 | | |
Consumer and other | | | | | 21,449 | | | | | | 9,689 | | |
Total loans held for investment, gross | | | | | 1,777,164 | | | | | | 1,657,681 | | |
Allowance for loan losses | | | | | (12,704) | | | | | | (16,259) | | |
Loans held for investment, net | | | | $ | 1,764,460 | | | | | $ | 1,641,422 | | |
Loans held for sale: | | | | | | | | | | | | | |
Loans held for sale | | | | $ | 165 | | | | | $ | 1,270 | | |
Total loans held for sale | | | | $ | 165 | | | | | $ | 1,270 | | |
(Dollars in thousands) | | | 30 – 59 Days Past Due | | | 60 – 89 Days Past Due | | | Greater than 90 Days Past Due | | | Nonaccrual | | | Total Past Due | | | Loans Not Past Due | | | Total | | |||||||||||||||||||||
December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | 292 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 292 | | | | | $ | 902,362 | | | | | $ | 902,654 | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 377,511 | | | | | | 377,511 | | |
Commercial (Non-PPP) | | | | | 449 | | | | | | — | | | | | | — | | | | | | 1,468 | | | | | | 1,917 | | | | | | 323,498 | | | | | | 325,415 | | |
Commercial (PPP) | | | | | 7 | | | | | | — | | | | | | — | | | | | | — | | | | | | 7 | | | | | | 58,608 | | | | | | 58,615 | | |
Construction and land development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 91,520 | | | | | | 91,520 | | |
Consumer and other | | | | | — | | | | | | — | | | | | | — | | | | | | 654 | | | | | | 654 | | | | | | 20,795 | | | | | | 21,449 | | |
Total | | | | $ | 748 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,122 | | | | | $ | 2,870 | | | | | $ | 1,774,294 | | | | | $ | 1,777,164 | | |
(Dollars in thousands) | | | 30 – 59 Days Past Due | | | 60 – 89 Days Past Due | | | Greater than 90 Days Past Due | | | Nonaccrual | | | Total Past Due | | | Loans Not Past Due | | | Total | | |||||||||||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 777,025 | | | | | $ | 777,025 | | |
Residential real estate | | | | | 1,317 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,317 | | | | | | 378,217 | | | | | | 379,534 | | |
Commercial (Non-PPP) | | | | | 278 | | | | | | — | | | | | | — | | | | | | 9,127 | | | | | | 9,405 | | | | | | 196,690 | | | | | | 206,095 | | |
Commercial (PPP) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 185,748 | | | | | | 185,748 | | |
Construction and land development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 99,590 | | | | | | 99,590 | | |
Consumer and other | | | | | — | | | | | | — | | | | | | — | | | | | | 1,307 | | | | | | 1,307 | | | | | | 8,382 | | | | | | 9,689 | | |
Total | | | | $ | 1,595 | | | | | $ | — | | | | | $ | — | | | | | $ | 10,434 | | | | | $ | 12,029 | | | | | $ | 1,645,652 | | | | | $ | 1,657,681 | | |
| | | December 31, 2021 | | |||||||||||||||||||||
| | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
Securities Available for Sale: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government-sponsored enterprises (GSEs) | | | | $ | 6,880 | | | | | $ | 60 | | | | | $ | (44) | | | | | $ | 6,896 | | |
Corporate bonds | | | | | 68,341 | | | | | | 1,312 | | | | | | (724) | | | | | | 68,929 | | |
GSE residential mortgage-backed | | | | | 92,775 | | | | | | 670 | | | | | | (2,316) | | | | | | 91,129 | | |
GSE commercial mortgage-backed | | | | | 7,485 | | | | | | — | | | | | | (106) | | | | | | 7,379 | | |
Tax exempt municipals | | | | | 30,424 | | | | | | 323 | | | | | | (70) | | | | | | 30,677 | | |
Asset-backed | | | | | 29,410 | | | | | | 154 | | | | | | (137) | | | | | | 29,427 | | |
U.S. treasury notes | | | | | 24,718 | | | | | | — | | | | | | (417) | | | | | | 24,301 | | |
Total securities available for sale | | | | $ | 260,033 | | | | | $ | 2,519 | | | | | $ | (3,814) | | | | | $ | 258,738 | | |
| | | December 31, 2020 | | |||||||||||||||||||||
| | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
Securities Available for Sale: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government-sponsored enterprises (GSEs) | | | | $ | 18,271 | | | | | $ | 582 | | | | | $ | (57) | | | | | $ | 18,796 | | |
Corporate bonds | | | | | 54,175 | | | | | | 1,691 | | | | | | (909) | | | | | | 54,957 | | |
GSE residential mortgage-backed | | | | | 113,232 | | | | | | 766 | | | | | | (131) | | | | | | 113,867 | | |
GSE commercial mortgage-backed | | | | | 8,562 | | | | | | 8 | | | | | | (26) | | | | | | 8,544 | | |
Tax exempt municipals | | | | | 23,776 | | | | | | 373 | | | | | | (9) | | | | | | 24,140 | | |
Asset-backed | | | | | 12,541 | | | | | | 60 | | | | | | (44) | | | | | | 12,557 | | |
Total securities available for sale | | | | $ | 230,557 | | | | | $ | 3,480 | | | | | $ | (1,176) | | | | | $ | 232,861 | | |
| | | Amortized Cost | | | Fair Value | | ||||||
After 1 year through 5 years | | | | $ | 32,543 | | | | | $ | 32,160 | | |
After 5 years through 10 years | | | | | 29,526 | | | | | | 29,385 | | |
Over 10 years | | | | | 197,964 | | | | | | 197,193 | | |
Total | | | | $ | 260,033 | | | | | $ | 258,738 | | |
| | | Less Than Twelve Months | | | Over Twelve Months | | | Total Unrealized Losses | | |||||||||||||||||||||
| Gross Unrealized Losses | | | Fair Value | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||||||||||
December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Securities Available for Sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
GSEs | | | | $ | — | | | | | $ | — | | | | | $ | (44) | | | | | $ | 4,399 | | | | | $ | (44) | | |
Corporate bonds | | | | | (559) | | | | | | 28,522 | | | | | | (165) | | | | | | 4,324 | | | | | | (724) | | |
GSE residential mortgage-backed | | | | | (1,318) | | | | | | 57,191 | | | | | | (998) | | | | | | 26,788 | | | | | | (2,316) | | |
GSE commecial mortgage-backed | | | | | (27) | | | | | | 5,013 | | | | | | (79) | | | | | | 2,367 | | | | | | (106) | | |
Tax exempt municipals | | | | | (58) | | | | | | 5,124 | | | | | | (12) | | | | | | 1,518 | | | | | | (70) | | |
Asset-backed | | | | | (137) | | | | | | 19,106 | | | | | | — | | | | | | — | | | | | | (137) | | |
U.S. treasury notes | | | | | (417) | | | | | | 24,301 | | | | | | — | | | | | | — | | | | | | (417) | | |
| | | | $ | (2,516) | | | | | $ | 139,257 | | | | | $ | (1,298) | | | | | $ | 39,396 | | | | | $ | (3,814) | | |
(Dollars in thousands) | | | Pass | | | Special Mention | | | Substandard | | | Doubtful | | | Total | | |||||||||||||||
December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | 900,364 | | | | | $ | — | | | | | $ | 2,290 | | | | | $ | — | | | | | $ | 902,654 | | |
Residential real estate | | | | | 377,511 | | | | | | — | | | | | | — | | | | | | — | | | | | | 377,511 | | |
Commercial (Non-PPP) | | | | | 323,657 | | | | | | 290 | | | | | | 1,468 | | | | | | — | | | | | | 325,415 | | |
Commercial (PPP) | | | | | 58,615 | | | | | | — | | | | | | — | | | | | | — | | | | | | 58,615 | | |
Construction and land development | | | | | 91,520 | | | | | | — | | | | | | — | | | | | | — | | | | | | 91,520 | | |
Consumer | | | | | 20,712 | | | | | | 83 | | | | | | — | | | | | | 654 | | | | | | 21,449 | | |
Total | | | | $ | 1,772,379 | | | | | $ | 373 | | | | | $ | 3,758 | | | | | $ | 654 | | | | | $ | 1,777,164 | | |
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | 774,674 | | | | | $ | — | | | | | $ | 2,351 | | | | | $ | — | | | | | $ | 777,025 | | |
Residential real estate | | | | | 379,104 | | | | | | 430 | | | | | | — | | | | | | — | | | | | | 379,534 | | |
Commercial (Non-PPP) | | | | | 196,856 | | | | | | 112 | | | | | | 9,127 | | | | | | — | | | | | | 206,095 | | |
Commercial (PPP) | | | | | 185,748 | | | | | | — | | | | | | — | | | | | | — | | | | | | 185,748 | | |
Construction and land development | | | | | 99,590 | | | | | | — | | | | | | — | | | | | | — | | | | | | 99,590 | | |
Consumer | | | | | 8,382 | | | | | | — | | | | | | 1,307 | | | | | | — | | | | | | 9,689 | | |
Total | | | | $ | 1,644,354 | | | | | $ | 542 | | | | | $ | 12,785 | | | | | $ | — | | | | | $ | 1,657,681 | | |
(Dollars in thousands) | | | December 31, 2021 | | | December 31, 2020 | | ||||||
Commercial real estate | | | | $ | 5,845 | | | | | $ | — | | |
Residential real estate | | | | | 89 | | | | | | 405 | | |
Commercial | | | | | 410 | | | | | | 746 | | |
Construction and development | | | | | — | | | | | | 3,732 | | |
Consumer and other loans | | | | | — | | | | | | — | | |
Carrying amount | | | | $ | 6,344 | | | | | $ | 4,883 | | |
(Dollars in thousands) | | | 2021 | | | 2020 | | ||||||
Balance at January 1 | | | | $ | (630) | | | | | $ | — | | |
New loans purchased | | | | | — | | | | | | (545) | | |
Adjustment of income | | | | | — | | | | | | (85) | | |
Accretion | | | | | 356 | | | | | | | | |
Reclassifications from nonaccretable difference | | | | | (339) | | | | | | — | | |
Disposals | | | | | 41 | | | | | | — | | |
Balance on December 31 | | | | $ | (572) | | | | | $ | (630) | | |
| | | Less Than Twelve Months | | | Over Twelve Months | | | Total Unrealized Losses | | |||||||||||||||||||||
| Gross Unrealized Losses | | | Fair Value | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Securities Available for Sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
GSEs | | | | $ | — | | | | | $ | — | | | | | $ | (57) | | | | | $ | 5,825 | | | | | $ | (57) | | |
Corporate bonds | | | | | (319) | | | | | | 13,347 | | | | | | (590) | | | | | | 8,641 | | | | | | (909) | | |
GSE residential mortgage-backed | | | | | (131) | | | | | | 48,123 | | | | | | — | | | | | | — | | | | | | (131) | | |
GSE commecial mortgage-backed | | | | | — | | | | | | — | | | | | | (26) | | | | | | 3,928 | | | | | | (26) | | |
Tax exempt municipals | | | | | (9) | | | | | | 1,493 | | | | | | — | | | | | | — | | | | | | (9) | | |
Asset-backed | | | | | — | | | | | | — | | | | | | (44) | | | | | | 6,276 | | | | | | (44) | | |
| | | | $ | (459) | | | | | $ | 62,963 | | | | | $ | (717) | | | | | $ | 24,670 | | | | | $ | (1,176) | | |
| | | 2021 | | | 2020 | | ||||||
Commercial and industrial | | | | $ | 53,839 | | | | | $ | 72,168 | | |
Real estate | | | | | 596,800 | | | | | | 431,124 | | |
Consumer | | | | | 12,345 | | | | | | 15,399 | | |
Other | | | | | 3,197 | | | | | | 2,478 | | |
| | | | | 666,181 | | | | | | 521,169 | | |
Unamortized net loan premiums | | | | | 229 | | | | | | 432 | | |
Net deferred loan fees | | | | | (1,476) | | | | | | (1,072) | | |
Allowance for loan losses | | | | | (6,896) | | | | | | (7,006) | | |
Loans, net | | | | $ | 658,038 | | | | | $ | 513,523 | | |
| | | 2021 | | | 2020 | | ||||||
Gross loans | | | | $ | 666,181 | | | | | $ | 521,169 | | |
Accrued interest receivable | | | | | 4,035 | | | | | | 4,676 | | |
Net deferred loan fees | | | | | (1,476) | | | | | | (1,072) | | |
Unamortized net loan premiums | | | | | 229 | | | | | | 432 | | |
| | | | $ | 668,969 | | | | | $ | 525,205 | | |
(Dollars in thousands) | | | March 26, 2020 | | |||
Contractually required principal and interest by loan type | | | | | | | |
Commercial real estate | | | | $ | 427 | | |
Residential real estate | | | | | 604 | | |
Commercial | | | | | 2,176 | | |
Construction and development | | | | | 5,614 | | |
Consumer and other loans | | | | | — | | |
Total | | | | $ | 8,821 | | |
Contractual cash flows not expected to be collected (nonaccretable discount) | | | | | | | |
Commercial real estate | | | | $ | 80 | | |
Residential real estate | | | | | 138 | | |
Commercial | | | | | 1,123 | | |
Construction and development | | | | | 2,297 | | |
Consumer and other loans | | | | | — | | |
Total | | | | $ | 3,638 | | |
Expected cash flows | | | | $ | 5,183 | | |
Interest component of expected cash flows (accretable discount) | | | | | (545) | | |
Fair value of PCI loans accounted for under ASC 310-30 | | | | $ | 4,638 | | |
| | | Commercial and Industrial | | | Real Estate | | | Consumer | | | Other | | | Unallocated | | | Total | | ||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 724 | | | | | $ | 5,792 | | | | | $ | 116 | | | | | $ | — | | | | | $ | 374 | | | | | $ | 7,006 | | |
Charge-offs | | | | | — | | | | | | — | | | | | | (13) | | | | | | — | | | | | | — | | | | | | (13) | | |
Recoveries | | | | | — | | | | | | — | | | | | | 3 | | | | | | — | | | | | | — | | | | | | 3 | | |
Provision (reversal) | | | | | (383) | | | | | | 160 | | | | | | (38) | | | | | | — | | | | | | 161 | | | | | | (100) | | |
Ending balance | | | | $ | 341 | | | | | $ | 5,952 | | | | | $ | 68 | | | | | $ | — | | | | | $ | 535 | | | | | $ | 6,896 | | |
Ending balance: individually evaluated for impairment | | | | $ | 25 | | | | | $ | 190 | | | | | $ | 2 | | | | | $ | — | | | | | $ | — | | | | | $ | 217 | | |
Ending balance: collectively evaluated for impairment | | | | $ | 316 | | | | | $ | 5,762 | | | | | $ | 66 | | | | | $ | — | | | | | $ | 535 | | | | | $ | 6,679 | | |
Ending balance: loans acquired with deteriorated credit quality | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Recorded investment in loans: | | | | $ | 54,218 | | | | | $ | 598,014 | | | | | $ | 13,577 | | | | | $ | 3,160 | | | | | $ | — | | | | | $ | 668,969 | | |
Ending balance | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance: individually evaluated for impairment | | | | $ | 9,154 | | | | | $ | 5,544 | | | | | $ | 103 | | | | | $ | — | | | | | $ | — | | | | | $ | 14,801 | | |
Ending balance: collectively evaluated for impairment | | | | $ | 45,064 | | | | | $ | 592,470 | | | | | $ | 13,474 | | | | | $ | 3,160 | | | | | $ | — | | | | | $ | 654,168 | | |
Ending balance: loans acquired with deteriorated credit quality | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
(Dollars in thousands) | | | Commercial Real Estate | | | Residential Real Estate | | | Commercial | | | Construction and land Development | | | Consumer and Other | | | Total | | ||||||||||||||||||
December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 3,159 | | | | | $ | 2,177 | | | | | $ | 10,462 | | | | | $ | 388 | | | | | $ | 73 | | | | | $ | 16,259 | | |
Provision for loan losses | | | | | 1,312 | | | | | | 162 | | | | | | 1,816 | | | | | | 83 | | | | | | 1,367 | | | | | | 4,740 | | |
Loans charged-off | | | | | — | | | | | | — | | | | | | (7,641) | | | | | | — | | | | | | (654) | | | | | | (8,295) | | |
Recoveries | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total ending allowance balance | | | | $ | 4,471 | | | | | $ | 2,339 | | | | | $ | 4,637 | | | | | $ | 471 | | | | | $ | 786 | | | | | $ | 12,704 | | |
(Dollars in thousands) | | | Commercial Real Estate | | | Residential Real Estate | | | Commercial | | | Construction and land Development | | | Consumer and Other | | | Total | | ||||||||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 1,845 | | | | | $ | 3,115 | | | | | $ | 1,235 | | | | | $ | 272 | | | | | $ | 81 | | | | | $ | 6,548 | | |
Provision for loan losses | | | | | 1,314 | | | | | | (731) | | | | | | 9,326 | | | | | | 116 | | | | | | (8) | | | | | | 10,017 | | |
Loans charged-off | | | | | — | | | | | | (207) | | | | | | (99) | | | | | | — | | | | | | — | | | | | | (306) | | |
Recoveries | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total ending allowance balance | | | | $ | 3,159 | | | | | $ | 2,177 | | | | | $ | 10,462 | | | | | $ | 388 | | | | | $ | 73 | | | | | $ | 16,259 | | |
(Dollars in thousands) | | | Commercial Real Estate | | | Residential Real Estate | | | Commercial | | | Construction and land Development | | | Consumer and Other | | | Total | | ||||||||||||||||||
December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending allowance balance attributable to loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | | | $ | — | | | | | $ | — | | | | | $ | 671 | | | | | $ | — | | | | | $ | 654 | | | | | $ | 1,325 | | |
Collectively evaluated for impairment | | | | | 4,471 | | | | | | 2,339 | | | | | | 3,966 | | | | | | 471 | | | | | | 132 | | | | | | 11,379 | | |
Total ending allowance balance | | | | $ | 4,471 | | | | | $ | 2,339 | | | | | $ | 4,637 | | | | | $ | 471 | | | | | $ | 786 | | | | | $ | 12,704 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | | | | $ | 2,290 | | | | | $ | — | | | | | $ | 1,468 | | | | | $ | — | | | | | $ | 654 | | | | | $ | 4,412 | | |
Loans collectively evaluated for impairment | | | | | 900,364 | | | | | | 377,511 | | | | | | 382,562 | | | | | | 91,520 | | | | | | 20,795 | | | | | | 1,772,752 | | |
Total ending loans balance | | | | $ | 902,654 | | | | | $ | 377,511 | | | | | $ | 384,030 | | | | | $ | 91,520 | | | | | $ | 21,449 | | | | | $ | 1,777,164 | | |
(Dollars in thousands) | | | Commercial Real Estate | | | Residential Real Estate | | | Commercial | | | Construction and land Development | | | Consumer and Other | | | Total | | ||||||||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending allowance balance attributable to loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | | | $ | — | | | | | $ | — | | | | | $ | 8,309 | | | | | $ | — | | | | | $ | — | | | | | $ | 8,309 | | |
Collectively evaluated for impairment | | | | | 3,159 | | | | | | 2,177 | | | | | | 2,153 | | | | | | 388 | | | | | | 73 | | | | | | 7,950 | | |
Total ending allowance balance | | | | $ | 3,159 | | | | | $ | 2,177 | | | | | $ | 10,462 | | | | | $ | 388 | | | | | $ | 73 | | | | | $ | 16,259 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | | | | $ | 2,351 | | | | | $ | 299 | | | | | $ | 9,127 | | | | | $ | — | | | | | $ | 1,307 | | | | | $ | 13,084 | | |
Loans collectively evaluated for impairment | | | | | 774,674 | | | | | | 379,235 | | | | | | 382,716 | | | | | | 99,590 | | | | | | 8,382 | | | | | | 1,644,597 | | |
Total ending loans balance | | | | $ | 777,025 | | | | | $ | 379,534 | | | | | $ | 391,843 | | | | | $ | 99,590 | | | | | $ | 9,689 | | | | | $ | 1,657,681 | | |
|
(Dollars in thousands) | | | 2021 | | | 2020 | | ||||||
Furniture, fixture and equipment | | | | $ | 2,182 | | | | | $ | 1,694 | | |
Computer, hardware and software | | | | | 2,590 | | | | | | 2,260 | | |
Leasehold improvements | | | | | 3,867 | | | | | | 3,537 | | |
Corporate branding | | | | | 118 | | | | | | 118 | | |
| | | | | 8,757 | | | | | | 7,609 | | |
Accumulated depreciation and amortization | | | | | (4,886) | | | | | | (3,239) | | |
| | | | $ | 3,871 | | | | | $ | 4,370 | | |
(Dollars in thousands) | | | December 31, 2021 | | | December 31, 2020 | | ||||||
Beginning goodwill | | | | $ | 24,621 | | | | | $ | — | | |
Measurement period adjustments | | | | | — | | | | | | — | | |
Additions arising from business combinations | | | | | — | | | | | | 24,621 | | |
Ending goodwill | | | | $ | 24,621 | | | | | $ | 24,621 | | |
Core deposit intangible | | | | $ | 1,422 | | | | | $ | 1,646 | | |
Less: Accumulated amortization | | | | | (277) | | | | | | (224) | | |
Core deposit intangible, net | | | | $ | 1,145 | | | | | $ | 1,422 | | |
(Dollars in thousands) | | | Core deposit intangible | | |||
2022 | | | | $ | 247 | | |
2023 | | | | $ | 217 | | |
2024 | | | | $ | 187 | | |
2025 | | | | $ | 157 | | |
2026 | | | | $ | 127 | | |
| | | Commercial and Industrial | | | Real Estate | | | Consumer | | | Other | | | Unallocated | | | Total | | ||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 228 | | | | | $ | 5,428 | | | | | $ | 79 | | | | | $ | 16 | | | | | $ | 2 | | | | | $ | 5,753 | | |
Charge-offs | | | | | — | | | | | | (42) | | | | | | — | | | | | | (12) | | | | | | — | | | | | | (54) | | |
Recoveries | | | | | — | | | | | | — | | | | | | 1 | | | | | | 6 | | | | | | — | | | | | | 7 | | |
Provision | | | | | 496 | | | | | | 406 | | | | | | 36 | | | | | | (10) | | | | | | 372 | | | | | | 1,300 | | |
Ending balance | | | | $ | 724 | | | | | $ | 5,792 | | | | | $ | 116 | | | | | $ | — | | | | | $ | 374 | | | | | $ | 7,006 | | |
Ending balance: individually evaluated for impairment | | | | $ | 22 | | | | | $ | 93 | | | | | $ | 10 | | | | | $ | — | | | | | $ | — | | | | | $ | 125 | | |
Ending balance: collectively evaluated for impairment | | | | $ | 702 | | | | | $ | 5,699 | | | | | $ | 106 | | | | | $ | — | | | | | $ | 374 | | | | | $ | 6,881 | | |
Ending balance: loans acquired with deteriorated credit quality | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Recorded investment in loans: | | | | $ | 72,128 | | | | | $ | 433,997 | | | | | $ | 16,596 | | | | | $ | 2,484 | | | | | $ | — | | | | | $ | 525,205 | | |
Ending balance | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance: individually evaluated for impairment | | | | $ | 8,258 | | | | | $ | 29,030 | | | | | $ | 549 | | | | | $ | — | | | | | $ | — | | | | | $ | 37,837 | | |
Ending balance: collectively evaluated for impairment | | | | $ | 63,870 | | | | | $ | 404,783 | | | | | $ | 16,047 | | | | | $ | 2,484 | | | | | $ | — | | | | | $ | 487,184 | | |
Ending balance: loans acquired with deteriorated credit quality | | | | $ | — | | | | | $ | 184 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 184 | | |
(Dollars in thousands) | | | Three Months or Less | | | Over Three Through Six Months | | | Over Six Months Through 12 Months | | | Over 12 Months | | | Total | | |||||||||||||||
Time deposits of $250,000 or less | | | | $ | 17,431 | | | | | $ | 26,721 | | | | | $ | 44,373 | | | | | $ | 4,631 | | | | | $ | 93,156 | | |
Time deposits of more than $250,000 | | | | | 32,058 | | | | | | 54,429 | | | | | | 83,290 | | | | | | 2,760 | | | | | | 172,537 | | |
Total | | | | $ | 49,489 | | | | | $ | 81,150 | | | | | $ | 127,663 | | | | | $ | 7,391 | | | | | $ | 265,693 | | |
(Dollars in thousands) | | | Three Months or Less | | | Over Three Through Six Months | | | Over Six Months Through 12 Months | | | Over 12 Months | | | Total | | |||||||||||||||
Time deposits of $250,000 or less | | | | $ | 20,767 | | | | | $ | 13,258 | | | | | $ | 24,805 | | | | | $ | 19,240 | | | | | $ | 78,070 | | |
Time deposits of more than $250,000 | | | | | 40,189 | | | | | | 35,314 | | | | | | 42,845 | | | | | | 40,157 | | | | | | 158,505 | | |
Total | | | | $ | 60,956 | | | | | $ | 48,572 | | | | | $ | 67,650 | | | | | $ | 59,397 | | | | | $ | 236,575 | | |
(Dollars in thousands) | | | December 31, 2021 | | | December 31, 2020 | | ||||||
1 year or less | | | | $ | 258,302 | | | | | $ | 177,178 | | |
Over 1 through 2 years | | | | | 6,669 | | | | | | 57,034 | | |
Over 2 through 3 years | | | | | 722 | | | | | | 1,658 | | |
Over 3 through 4 years | | | | | — | | | | | | 705 | | |
Over 4 through 5 years | | | | | — | | | | | | — | | |
Over 5 years | | | | | — | | | | | | — | | |
Total | | | | $ | 265,693 | | | | | $ | 236,575 | | |
| | | Pass | | | Special Mention | | | Substandard | | | Total | | ||||||||||||
Business assets | | | | $ | 28,743 | | | | | $ | — | | | | | $ | 9,051 | | | | | $ | 37,794 | | |
C & I – unsecured | | | | | 16,366 | | | | | | 50 | | | | | | — | | | | | | 16,416 | | |
EXIM secured | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial – OO | | | | | 69,085 | | | | | | — | | | | | | — | | | | | | 69,085 | | |
Commercial – NOO | | | | | 321,111 | | | | | | — | | | | | | — | | | | | | 321,111 | | |
Land | | | | | 24,797 | | | | | | — | | | | | | — | | | | | | 24,797 | | |
Residential | | | | | 96,958 | | | | | | — | | | | | | 3,633 | | | | | | 100,591 | | |
Hotels | | | | | 82,430 | | | | | | — | | | | | | — | | | | | | 82,430 | | |
Consumer – secured | | | | | 330 | | | | | | — | | | | | | — | | | | | | 330 | | |
Consumer – unsecured | | | | | 8 | | | | | | — | | | | | | — | | | | | | 8 | | |
Guaranteed student | | | | | 13,144 | | | | | | — | | | | | | 103 | | | | | | 13,247 | | |
Cash collateral | | | | | 3,160 | | | | | | — | | | | | | — | | | | | | 3,160 | | |
Total | | | | $ | 656,132 | | | | | $ | 50 | | | | | $ | 12,787 | | | | | $ | 668,969 | | |
| | | Pass | | | Special Mention | | | Substandard | | | Total | | ||||||||||||
Business assets | | | | $ | 33,520 | | | | | $ | 4,566 | | | | | $ | 8,246 | | | | | $ | 46,332 | | |
C & I – unsecured | | | | | 8,441 | | | | | | 51 | | | | | | — | | | | | | 8,492 | | |
EXIM secured | | | | | 17,304 | | | | | | — | | | | | | — | | | | | | 17,304 | | |
Commercial – OO | | | | | 44,706 | | | | | | — | | | | | | 2,521 | | | | | | 47,227 | | |
Commercial – NOO | | | | | 192,967 | | | | | | — | | | | | | 3,212 | | | | | | 196,179 | | |
Land | | | | | 21,504 | | | | | | — | | | | | | — | | | | | | 21,504 | | |
Residential | | | | | 82,534 | | | | | | — | | | | | | 11,387 | | | | | | 93,921 | | |
Hotels | | | | | 60,942 | | | | | | — | | | | | | 14,224 | | | | | | 75,166 | | |
Consumer – secured | | | | | 339 | | | | | | — | | | | | | — | | | | | | 339 | | |
Consumer – unsecured | | | | | 10 | | | | | | — | | | | | | — | | | | | | 10 | | |
Guaranteed student | | | | | 16,247 | | | | | | — | | | | | | — | | | | | | 16,247 | | |
Cash collateral | | | | | 2,484 | | | | | | — | | | | | | — | | | | | | 2,484 | | |
Total | | | | $ | 480,998 | | | | | $ | 4,617 | | | | | $ | 39,590 | | | | | $ | 525,205 | | |
(Dollars in thousands) | | | 2021 | | | 2020 | | ||||||
Maturities through 2030, fixed rate at 0.81%, averaging 0.81% | | | | $ | 5,000 | | | | | $ | 10,000 | | |
Maturities through 2024, floating rate at rates from 1.86% to 2.46%, averaging 2.24% | | | | | 30,000 | | | | | | 30,000 | | |
| | | | $ | 35,000 | | | | | $ | 40,000 | | |
(Dollars in thousands) | | | Advance Payments | | |||
2022 | | | | $ | — | | |
2023 | | | | | — | | |
2024 | | | | | 30,000 | | |
2025 | | | | | — | | |
2026 | | | | | — | | |
| | | Term Modifications | | | Combination Modifications | | | Total Modifications | | |||||||||
Residential | | | | $ | 1,009 | | | | | $ | — | | | | | $ | 1,009 | | |
Total | | | | $ | 1,009 | | | | | $ | — | | | | | $ | 1,009 | | |
| | | Term Modifications | | | Combination Modifications | | | Total Modifications | | |||||||||
Commercial – OO | | | | $ | — | | | | | $ | 62 | | | | | $ | 62 | | |
Residential | | | | | 1,240 | | | | | | — | | | | | | 1,240 | | |
Total | | | | $ | 1,240 | | | | | $ | 62 | | | | | $ | 1,302 | | |
(Dollars in thousands) | | | 2021 | | | 2020 | | ||||||
Current provision | | | | | | | | | | | | | |
Federal | | | | $ | 3,420 | | | | | $ | 3,849 | | |
State | | | | | 426 | | | | | | 466 | | |
Deferred provision | | | | | | | | | | | | | |
Federal | | | | | 1,353 | | | | | | (1,556) | | |
State | | | | | (74) | | | | | | (342) | | |
Income tax provision | | | | $ | 5,125 | | | | | $ | 2,417 | | |
| | | Performing | | | Nonperforming | | | Total | | |||||||||
Business assets | | | | $ | 37,794 | | | | | $ | — | | | | | $ | 37,794 | | |
EXIM secured | | | | | — | | | | | | — | | | | | | — | | |
C & I – unsecured | | | | | 16,416 | | | | | | — | | | | | | 16,416 | | |
Commercial – OO | | | | | 69,085 | | | | | | — | | | | | | 69,085 | | |
Commercial – NOO | | | | | 321,111 | | | | | | — | | | | | | 321,111 | | |
Land | | | | | 24,797 | | | | | | — | | | | | | 24,797 | | |
Residential | | | | | 96,627 | | | | | | 3,964 | | | | | | 100,591 | | |
Hotels | | | | | 82,430 | | | | | | — | | | | | | 82,430 | | |
Consumer – secured | | | | | 330 | | | | | | — | | | | | | 330 | | |
Consumer – unsecured | | | | | 8 | | | | | | — | | | | | | 8 | | |
Guaranteed student | | | | | 13,247 | | | | | | — | | | | | | 13,247 | | |
Cash collateral | | | | | 3,160 | | | | | | — | | | | | | 3,160 | | |
Total | | | | $ | 665,005 | | | | | $ | 3,964 | | | | | $ | 668,969 | | |
| | | Performing | | | Nonperforming | | | Total | | |||||||||
Business assets | | | | $ | 46,332 | | | | | $ | — | | | | | $ | 46,332 | | |
EXIM secured | | | | | 17,304 | | | | | | — | | | | | | 17,304 | | |
C & I – unsecured | | | | | 8,492 | | | | | | — | | | | | | 8,492 | | |
Commercial – OO | | | | | 47,165 | | | | | | 62 | | | | | | 47,227 | | |
Commercial – NOO | | | | | 196,179 | | | | | | — | | | | | | 196,179 | | |
Land | | | | | 21,504 | | | | | | — | | | | | | 21,504 | | |
Residential | | | | | 82,534 | | | | | | 11,387 | | | | | | 93,921 | | |
Hotels | | | | | 75,166 | | | | | | — | | | | | | 75,166 | | |
Consumer – secured | | | | | 339 | | | | | | — | | | | | | 339 | | |
Consumer – unsecured | | | | | 10 | | | | | | — | | | | | | 10 | | |
Guaranteed student | | | | | 16,247 | | | | | | — | | | | | | 16,247 | | |
Cash collateral | | | | | 2,484 | | | | | | — | | | | | | 2,484 | | |
Total | | | | $ | 513,756 | | | | | $ | 11,449 | | | | | $ | 525,205 | | |
(Dollars in thousands) | | | 2021 | | | 2020 | | ||||||||||||||||||
Federal statutory rate times financial statement income | | | | | 21.0% | | | | | $ | 5,563 | | | | | | 21.0% | | | | | $ | 2,251 | | |
Effect of: | | | | | | | | | | | | | | | | | | | | | | | | | |
State taxes, net of federal benefit | | | | | 1.1% | | | | | | 291 | | | | | | 0.9% | | | | | | 90 | | |
Tax-exempt interest | | | | | (1.2)% | | | | | | (311) | | | | | | (1.0)% | | | | | | (91) | | |
Earnings from Bank-owned life insurance | | | | | (0.9)% | | | | | | (236) | | | | | | (1.0)% | | | | | | (105) | | |
Excess benefit on equity compensation | | | | | (0.6)% | | | | | | (165) | | | | | | 0.4% | | | | | | 42 | | |
Acquisition costs | | | | | —% | | | | | | 0 | | | | | | 1.3% | | | | | | 138 | | |
Other, net | | | | | (0.1)% | | | | | | (17) | | | | | | 0.9% | | | | | | 92 | | |
| | | | | 19.3% | | | | | $ | 5,125 | | | | | | 22.5% | | | | | $ | 2,417 | | |
| | | 31 – 60 Days Past Due | | | 61 – 90 Days Past Due | | | Greater Than 90 Days | | | Total Past Due | | | Current | | | Total Loans | | | Recorded Investment >90 Days and Accruing | | |||||||||||||||||||||
Business assets | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 37,794 | | | | | $ | 37,794 | | | | | $ | — | | |
EXIM secured | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
C & I – unsecured | | | | | 1 | | | | | | — | | | | | | — | | | | | | 1 | | | | | | 16,415 | | | | | | 16,416 | | | | | | — | | |
Commercial – OO | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 69,085 | | | | | | 69,085 | | | | | | — | | |
Commercial – NOO | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 321,111 | | | | | | 321,111 | | | | | | — | | |
Land | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 24,797 | | | | | | 24,797 | | | | | | — | | |
Residential | | | | | 103 | | | | | | — | | | | | | 2,618 | | | | | | 2,721 | | | | | | 97,870 | | | | | | 100,591 | | | | | | — | | |
Hotels | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 82,430 | | | | | | 82,430 | | | | | | — | | |
Consumer – secured | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | 330 | | | | | | 330 | | | | | | — | | |
Consumer – unsecured | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 8 | | | | | | 8 | | | | | | — | | |
Guaranteed student | | | | | 53 | | | | | | 59 | | | | | | 103 | | | | | | 215 | | | | | | 13,032 | | | | | | 13,247 | | | | | | 103 | | |
Cash collateral | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,160 | | | | | | 3,160 | | | | | | — | | |
Total | | | | $ | 157 | | | | | $ | 59 | | | | | $ | 2,721 | | | | | $ | 2,937 | | | | | $ | 666,032 | | | | | $ | 668,969 | | | | | $ | 103 | | |
| | | 31 – 60 Days Past Due | | | 61 – 90 Days Past Due | | | Greater Than 90 Days | | | Total Past Due | | | Current | | | Total Loans | | | Recorded Investment >90 Days and Accruing | | |||||||||||||||||||||
Business assets | | | | $ | — | | | | | $ | — | | | ��� | | $ | — | | | | | $ | — | | | | | $ | 46,332 | | | | | $ | 46,332 | | | | | $ | — | | |
EXIM secured | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 17,304 | | | | | | 17,304 | | | | | | — | | |
C & I – unsecured | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 8,492 | | | | | | 8,492 | | | | | | — | | |
Commercial – OO | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 47,227 | | | | | | 47,227 | | | | | | — | | |
Commercial – NOO | | | | | — | | | | | | 897 | | | | | | — | | | | | | 897 | | | | | | 195,282 | | | | | | 196,179 | | | | | | — | | |
Land | | | | | — | | | | | | 1,424 | | | | | | — | | | | | | 1,424 | | | | | | 20,080 | | | | | | 21,504 | | | | | | — | | |
Residential | | | | | 526 | | | | | | 191 | | | | | | 11,387 | | | | | | 12,104 | | | | | | 81,817 | | | | | | 93,921 | | | | | | — | | |
Hotels | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 75,166 | | | | | | 75,166 | | | | | | — | | |
Consumer – secured | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 339 | | | | | | 339 | | | | | | — | | |
Consumer – unsecured | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 10 | | | | | | 10 | | | | | | — | | |
Guaranteed student | | | | | 5 | | | | | | 808 | | | | | | 549 | | | | | | 1,362 | | | | | | 14,885 | | | | | | 16,247 | | | | | | 549 | | |
Cash collateral | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,484 | | | | | | 2,484 | | | | | | — | | |
Total | | | | $ | 531 | | | | | $ | 3,320 | | | | | $ | 11,936 | | | | | $ | 15,787 | | | | | $ | 509,418 | | | | | $ | 525,205 | | | | | $ | 549 | | |
| | | Recorded Investment | | | Unpaid Principal Balance | | | Associated Allowance | | | Average Recorded Investment | | | Interest Income Recognized | | |||||||||||||||
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Business Assets | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 3,419 | | | | | $ | 98 | | |
Commercial Mortgage (NOO) | | | | | — | | | | | | — | | | | | | | | | | | | 14,003 | | | | | | 270 | | |
Commercial Mortgage (OO) | | | | | 784 | | | | | | 786 | | | | | | — | | | | | | 3,284 | | | | | | 284 | | |
Residential | | | | | 2,933 | | | | | | 2,930 | | | | | | — | | | | | | 12,156 | | | | | | 600 | | |
Consumer | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Business Assets | | | | | 9,154 | | | | | | 9,142 | | | | | | 25 | | | | | | 9,124 | | | | | | 107 | | |
Commercial Mortgage (NOO) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial Mortgage (OO) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Residential | | | | | 1,827 | | | | | | 1,826 | | | | | | 190 | | | | | | 1,854 | | | | | | 7 | | |
Consumer | | | | | 103 | | | | | | 95 | | | | | | 2 | | | | | | 353 | | | | | | — | | |
Total: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Business Assets: | | | | | 9,154 | | | | | | 9,142 | | | | | | 25 | | | | | | 12,543 | | | | | | 205 | | |
Commercial Mortgage (NOO) | | | | | — | | | | | | — | | | | | | — | | | | | | 14,003 | | | | | | 270 | | |
Commercial Mortgage (OO) | | | | | 784 | | | | | | 786 | | | | | | — | | | | | | 3,284 | | | | | | 284 | | |
Residential | | | | | 4,760 | | | | | | 4,756 | | | | | | 190 | | | | | | 14,010 | | | | | | 607 | | |
Consumer | | | | | 103 | | | | | | 95 | | | | | | 2 | | | | | | 353 | | | | | | — | | |
| | | | $ | 14,801 | | | | | $ | 14,779 | | | | | $ | 217 | | | | | $ | 44,193 | | | | | $ | 1,366 | | |
| | | Recorded Investment | | | Unpaid Principal Balance | | | Associated Allowance | | | Average Recorded Investment | | | Interest Income Recognized | | |||||||||||||||
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Business assets | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Commercial Mortgage – NOO | | | | | 12,037 | | | | | | 11,992 | | | | | | — | | | | | | 15,237 | | | | | | 317 | | |
Commercial – OO | | | | | 861 | | | | | | 862 | | | | | | — | | | | | | 917 | | | | | | 42 | | |
Residential | | | | | 11,580 | | | | | | 11,573 | | | | | | — | | | | | | 14,611 | | | | | | 275 | | |
Consumer | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Business assets | | | | | 8,258 | | | | | | 8,239 | | | | | | 22 | | | | | | 8,252 | | | | | | 46 | | |
Commercial Mortgage – NOO | | | | | 1,899 | | | | | | 1,839 | | | | | | 3 | | | | | | 1,868 | | | | | | 6 | | |
Commercial – OO | | | | | 2,481 | | | | | | 2,460 | | | | | | 28 | | | | | | 2,488 | | | | | | 114 | | |
Residential | | | | | 172 | | | | | | 171 | | | | | | 62 | | | | | | 174 | | | | | | 7 | | |
Consumer | | | | | 549 | | | | | | 513 | | | | | | 10 | | | | | | 387 | | | | | | — | | |
Total: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Business assets | | | | | 8,258 | | | | | | 8,239 | | | | | | 22 | | | | | | 8,252 | | | | | | 46 | | |
Commercial Mortgage – NOO | | | | | 13,936 | | | | | | 13,831 | | | | | | 3 | | | | | | 17,105 | | | | | | 323 | | |
Commercial – OO | | | | | 3,342 | | | | | | 3,322 | | | | | | 28 | | | | | | 3,405 | | | | | | 156 | | |
Residential | | | | | 11,752 | | | | | | 11,744 | | | | | | 62 | | | | | | 14,785 | | | | | | 282 | | |
Consumer | | | | | 549 | | | | | | 513 | | | | | | 10 | | | | | | 387 | | | | | | — | | |
| | | | $ | 37,837 | | | | | $ | 37,649 | | | | | $ | 125 | | | | | $ | 43,934 | | | | | $ | 807 | | |
| | | 2021 | | | 2020 | | ||||||
Residential | | | | $ | 2,955 | | | | | $ | 11,387 | | |
Total | | | | $ | 2,955 | | | | | $ | 11,387 | | |
| | | 2021 | | | 2020 | | ||||||
Net gain on sales of foreclosed assets | | | | $ | 3 | | | | | $ | 15 | | |
Operating expenses | | | | | (2) | | | | | | (35) | | |
| | | | $ | 1 | | | | | $ | (20) | | |
| | | 2021 | | | 2020 | | ||||||
Land | | | | $ | 2,930 | | | | | $ | 2,930 | | |
Building and improvements | | | | | 2,692 | | | | | | 2,688 | | |
Leasehold improvements | | | | | 1,341 | | | | | | 1,295 | | |
Furniture, fixtures and equipment | | | | | 1,172 | | | | | | 1,129 | | |
Computer software | | | | | 618 | | | | | | 799 | | |
Computer hardware | | | | | 307 | | | | | | 597 | | |
Construction in progress | | | | | 297 | | | | | | — | | |
Vehicle | | | | | 29 | | | | | | 29 | | |
Artwork | | | | | 28 | | | | | | 28 | | |
| | | | | 9,414 | | | | | | 9,495 | | |
Less: accumulated depreciation and amortization | | | | | (3,081) | | | | | | (3,346) | | |
| | | | $ | 6,333 | | | | | $ | 6,149 | | |
| | | 2021 | | | 2020 | | ||||||
Core deposit intangible | | | | $ | 2,057 | | | | | $ | 2,057 | | |
Less: accumulated amortization | | | | | (1,900) | | | | | | (1,813) | | |
Net core deposit intangible | | | | $ | 157 | | | | | $ | 244 | | |
Year Ended December 31, | | | | | | | |
2022 | | | | $ | 71 | | |
2023 | | | | | 57 | | |
2024 | | | | | 29 | | |
| | | | $ | 157 | | |
Year Ended December 31, | | | | | | | |
2022 | | | | $ | 80,754 | | |
2023 | | | | | 7,314 | | |
2024 | | | | | 1,247 | | |
| | | | $ | 89,315 | | |
| | | Amount | | | Weighted Average Rate | | ||||||
Fixed rate advances maturing: | | | | | | | | | | | | | |
2024 | | | | $ | 7,500 | | | | | | 1.60% | | |
2029 | | | | | 7,500 | | | | | | 1.73% | | |
| | | | $ | 15,000 | | | | | | 1.66% | | |
| | | Amount | | | Unamortized Debt Issuance Costs | | ||||||
5.5% Fixed-to-Floating-Rate Senior Notes, due October 30, 2030 | | | | $ | 12,250 | | | | | $ | 398 | | |
| | | | $ | 12,250 | | | | | $ | 398 | | |
| | | Actual | | | For Capital Adequacy Purposes | | | To Be Well Capitalized Under Prompt Corrective Action Provisions | | |||||||||||||||||||||||||||
| | | Amount | | | Ratio | | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||||||||
2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Capital (to risk-weighted assets) | | | | $ | 104,178 | | | | | | 13.31% | | | | | $ | 62,610 | | | | | | 8.00% | | | | | $ | 78,262 | | | | | | 10.00% | | |
Tier 1 Capital (to risk-weighted assets) | | | | | 97,137 | | | | | | 12.41% | | | | | | 46,957 | | | | | | 6.00% | | | | | | 62,610 | | | | | | 8.00% | | |
Common equity tier 1 Capital (to risk-weighted assets) | | | | | 97,137 | | | | | | 12.41% | | | | | | 35,218 | | | | | | 4.50% | | | | | | 50,870 | | | | | | 6.50% | | |
Tier 1 capital (to average assets) | | | | | 97,137 | | | | | | 9.51% | | | | | | 40,843 | | | | | | 4.00% | | | | | | 51,054 | | | | | | 5.00% | | |
| | | Actual | | | For Capital Adequacy Purposes | | | To Be Well Capitalized Under Prompt Corrective Action Provisions | | |||||||||||||||||||||||||||
| | | Amount | | | Ratio | | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||||||||
2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Capital (to risk-weighted assets) | | | | $ | 95,351 | | | | | | 15.98% | | | | | $ | 47,740 | | | | | | 8.00% | | | | | $ | 59,676 | | | | | | 10.00% | | |
Tier 1 Capital (to risk-weighted assets) | | | | | 88,278 | | | | | | 14.79% | | | | | | 35,805 | | | | | | 6.00% | | | | | | 47,740 | | | | | | 8.00% | | |
Common equity tier 1 Capital (to risk-weighted assets) | | | | | 88,278 | | | | | | 14.79% | | | | | | 26,854 | | | | | | 4.50% | | | | | | 38,789 | | | | | | 6.50% | | |
Tier 1 capital (to average assets) | | | | | 88,278 | | | | | | 10.33% | | | | | | 34,168 | | | | | | 4.00% | | | | | | 42,709 | | | | | | 5.00% | | |
Year Ended December 31, | | | | | | | |
2022 | | | | $ | — | | |
2023 | | | | | — | | |
2024 | | | | | — | | |
2025 | | | | | — | | |
2026 | | | | | — | | |
Years 2027 – 2031 | | | | | 338 | | |
| | | | $ | 338 | | |
| | | Shares | | | Weighted Average Exercise Price | | | Weighted Average Remaining Contractual Term | | |||||||||
Outstanding at January 1, 2021 | | | | | 268 | | | | | $ | 10.00 | | | | | | | | |
Granted | | | | | — | | | | | | — | | | | | | | | |
Exercised | | | | | — | | | | | | — | | | | | | | | |
Forfeited or expired | | | | | — | | | | | | — | | | | | | | | |
Outstanding at December 31, 2021 | | | | | 268 | | | | | $ | 10.00 | | | | | | 9.0 | | |
Exercisable at December 31, 2021 | | | | | 268 | | | | | $ | 10.00 | | | | | | 9.0 | | |
| | | 2021 | | | 2020 | | ||||||
Current: | | | | | | | | | | | | | |
Federal | | | | $ | 1,744 | | | | | $ | 1,736 | | |
State | | | | | 320 | | | | | | 263 | | |
| | | | | 2,064 | | | | | | 1,999 | | |
Deferred: | | | | | | | | | | | | | |
Federal | | | | | (62) | | | | | | (352) | | |
State | | | | | (198) | | | | | | (75) | | |
| | | | | (260) | | | | | | (427) | | |
Total | | | | $ | 1,804 | | | | | $ | 1,572 | | |
| | | 2021 | | | 2020 | | ||||||
Current: | | | | | | | | | | | | | |
Federal income taxes, at statutory rate | | | | $ | 2,147 | | | | | $ | 1,435 | | |
State income taxes, net of federal tax benefit | | | | | 273 | | | | | | 117 | | |
Change in state tax rate | | | | | (150) | | | | | | — | | |
Change in valuation allowance | | | | | (375) | | | | | | 51 | | |
Other permanent differences | | | | | (91) | | | | | | (31) | | |
Total | | | | $ | 1,804 | | | | | $ | 1,572 | | |
| | | 2021 | | | 2020 | | ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Net operating loss and other carryforwards | | | | $ | 1,842 | | | | | $ | 1,914 | | |
Allowance for loan losses | | | | | 1,748 | | | | | | 1,718 | | |
Net unrealized loss on securities available for sale | | | | | 339 | | | | | | — | | |
Organizational expenses | | | | | 84 | | | | | | 107 | | |
Deferred loan fees | | | | | 374 | | | | | | 263 | | |
Discount on loans receivable | | | | | 87 | | | | | | 109 | | |
Capitalized costs | | | | | 42 | | | | | | 40 | | |
Stock option and warrant compensation | | | | | 216 | | | | | | 209 | | |
SERP | | | | | 255 | | | | | | 210 | | |
Accrued interest on long-term debt | | | | | — | | | | | | 30 | | |
Foreclosed asset | | | | | — | | | | | | 1 | | |
Accruals | | | | | 41 | | | | | | 253 | | |
| | | | | 5,028 | | | | | | 4,854 | | |
Less: valuation allowance | | | | | (366) | | | | | | (741) | | |
| | | | $ | 4,662 | | | | | $ | 4,113 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Net unrealized gain on securities available for sale | | | | | — | | | | | | (553) | | |
Depreciation | | | | | (24) | | | | | | (55) | | |
Core deposit intangible | | | | | (48) | | | | | | (67) | | |
| | | | | (72) | | | | | | (675) | | |
Net deferred tax asset | | | | $ | 4,590 | | | | | $ | 3,438 | | |
(Dollars in thousands) | | | 2021 | | | 2020 | | ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Allowance for loan losses | | | | $ | 3,575 | | | | | $ | 4,205 | | |
Preopening expenses | | | | | 40 | | | | | | 66 | | |
Fair value adjustments | | | | | 2,874 | | | | | | 4,469 | | |
Stock-based compensation | | | | | 972 | | | | | | 821 | | |
Deferred loan fees | | | | | 1,322 | | | | | | 1,368 | | |
Deferred rent | | | | | 104 | | | | | | 111 | | |
Lease liability | | | | | 1,305 | | | | | | 1,594 | | |
Intangible assets | | | | | 463 | | | | | | — | | |
Unrealized loss on securities available for sale | | | | | 243 | | | | | | — | | |
Other | | | | | 46 | | | | | | 3 | | |
Gross deferred tax assets | | | | | 10,944 | | | | | | 12,637 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Property and equipment | | | | | (129) | | | | | | (518) | | |
Right of use asset | | | | | (1,305) | | | | | | (1,594) | | |
Unrealized gain on securities available for sale | | | | | — | | | | | | (286) | | |
Gross deferred tax liabilities | | | | | (1,434) | | | | | | (2,398) | | |
Net deferred tax assets | | | | $ | 9,510 | | | | | $ | 10,239 | | |
| | | 2021 | | | 2020 | ��� | ||||||
Unfunded commitments under lines of credit | | | | $ | 93,729 | | | | | $ | 40,892 | | |
Commitments to grant loans | | | | | — | | | | | | 3,965 | | |
Standby letters of credit | | | | | 4,230 | | | | | | 4,200 | | |
(Dollars in thousands) | | | 2021 | | | 2020 | | ||||||
Balance on January 1, | | | | $ | 9,137 | | | | | $ | 4,388 | | |
New loans | | | | | 4,864 | | | | | | 2,500 | | |
MBI acquisition | | | | | — | | | | | | 757 | | |
PPP | | | | | 339 | | | | | | 1,682 | | |
Effect of changes in composition of related parties | | | | | — | | | | | | — | | |
Repayments | | | | | (2,626) | | | | | | (190) | | |
Balance on December 31 | | | | $ | 11,714 | | | | | $ | 9,137 | | |
Year Ended December 31, | | | | | | | |
2022 | | | | $ | 1,491 | | |
2023 | | | | | 1,399 | | |
2024 | | | | | 1,401 | | |
2025 | | | | | 1,316 | | |
2026 | | | | | 1,329 | | |
Thereafter | | | | | 7,788 | | |
| | | | $ | 14,724 | | |
| | | Fair Value Measurements at December 31, 2021 Using | | |||||||||||||||||||||
| | | Total | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | ||||||||||||
Securities available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | |
GSEs | | | | $ | 6,896 | | | | | $ | — | | | | | $ | 6,896 | | | | | $ | — | | |
Corporate bonds | | | | | 68,929 | | | | | | — | | | | | | 68,929 | | | | | | — | | |
GSE residential mortgage-backed | | | | | 91,129 | | | | | | — | | | | | | 91,129 | | | | | | — | | |
GSE commercial mortgage-backed | | | | | 7,379 | | | | | | — | | | | | | 7,379 | | | | | | — | | |
Tax exempt municipals | | | | | 30,677 | | | | | | — | | | | | | 30,677 | | | | | | — | | |
Asset-backed | | | | | 29,427 | | | | | | — | | | | | | 29,427 | | | | | | — | | |
U.S. treasury notes | | | | | 24,301 | | | | | | — | | | | | | 24,301 | | | | | | — | | |
Total assets at fair value | | | | $ | 258,738 | | | | | $ | — | | | | | $ | 258,738 | | | | | $ | — | | |
| | | Fair Value Measurements at December 31, 2020 Using | | |||||||||||||||||||||
| | | Total | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | ||||||||||||
Securities available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | |
GSEs | | | | $ | 18,796 | | | | | $ | — | | | | | $ | 18,796 | | | | | $ | — | | |
Corporate bonds | | | | | 54,957 | | | | | | — | | | | | | 54,957 | | | | | | — | | |
GSE residential mortgage-backed | | | | | 113,867 | | | | | | — | | | | | | 113,867 | | | | | | — | | |
GSE commercial mortgage-backed | | | | | 8,544 | | | | | | — | | | | | | 8,544 | | | | | | — | | |
Tax exempt municipals | | | | | 24,140 | | | | | | — | | | | | | 24,140 | | | | | | — | | |
Asset-backed | | | | | 12,557 | | | | | | — | | | | | | 12,557 | | | | | | — | | |
Total assets at fair value | | | | $ | 232,861 | | | | | $ | — | | | | | $ | 232,861 | | | | | $ | — | | |
| | | Fair Value Measurements on December 31, 2021 Using: | | |||||||||||||||||||||
(Dollars in thousands) | | | Fair Value | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | ||||||||||||
ASSETS: | | | | | | | | | | | | | | | | | | | | | | | | | |
Securities available for sale – taxable | | | | | | | | | | | | | | | | | | | | | | | | | |
Small Business Administration loan pools | | | | $ | 39,934 | | | | | $ | — | | | | | $ | 39,934 | | | | | $ | — | | |
Mortgage-backed securities | | | | | 130,103 | | | | | | — | | | | | | 130,103 | | | | | | — | | |
United States agency obligations | | | | | 3,986 | | | | | | — | | | | | | 3,986 | | | | | | — | | |
Corporate bonds | | | | | 1,513 | | | | | | — | | | | | | 1,513 | | | | | | — | | |
Securities available for sale – tax exempt | | | | | | | | | | | | | | | | | | | | | | | | | |
Community Development District bonds | | | | | 17,674 | | | | | | — | | | | | | 17,674 | | | | | $ | — | | |
Municipals | | | | | 1,091 | | | | | | — | | | | | | 1,091 | | | | | | — | | |
Equity | | | | | | | | | | | | | | | | | | | | | | | | | |
Mutual funds | | | | | 5,838 | | | | | | 5,838 | | | | | | — | | | | | $ | — | | |
Other equity securities | | | | | 800 | | | | | | 800 | | | | | | — | | | | | | — | | |
Loans held for sale | | | | | 165 | | | | | | 165 | | | | | | — | | | | | $ | — | | |
Customer derivatives – interest rate swaps | | | | | 1,144 | | | | | | — | | | | | | 1,144 | | | | | $ | — | | |
LIABILITIES: | | | | | | | | | | | | | | | | | | | | | | | | | |
Customer derivatives – interest rate swaps | | | | $ | 1,144 | | | | | | — | | | | | $ | 1,144 | | | | | $ | — | | |
| | | Fair Value Measurements on December 31, 2020 Using: | | |||||||||||||||||||||
(Dollars in thousands) | | | Fair Value | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | ||||||||||||
ASSETS: | | | | | | | | | | | | | | | | | | | | | | | | | |
Securities available for sale – taxable | | | | | | | | | | | | | | | | | | | | | | | | | |
Small Business Administration loan pools | | | | $ | 30,556 | | | | | $ | — | | | | | $ | 30,556 | | | | | $ | — | | |
Mortgage-backed securities | | | | | 28,922 | | | | | | — | | | | | | 28,922 | | | | | | — | | |
United States agency obligations | | | | | 3,122 | | | | | | — | | | | | | 3,122 | | | | | | — | | |
Corporate bonds | | | | | 2,510 | | | | | | — | | | | | | 2,510 | | | | | | — | | |
Securities available for sale – tax exempt | | | | | | | | | | | | | | | | | | | | | | | | | |
Community Development District bonds | | | | | 21,299 | | | | | | — | | | | | | 21,299 | | | | | $ | — | | |
Municipals | | | | | 1,099 | | | | | | — | | | | | | 1,099 | | | | | | — | | |
Equity | | | | | | | | | | | | | | | | | | | | | | | | | |
Mutual funds | | | | | 6,005 | | | | | | 6,005 | | | | | | — | | | | | $ | — | | |
Loans held for sale | | | | | 1,270 | | | | | | 1,270 | | | | | | — | | | | | $ | — | | |
| | | | | | | | | Fair Value Measurements on December 31, 2021 Using: | | |||||||||||||||||||||
(Dollars in thousands) | | | Total on December 31, 2021 | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | | Total Gains (Losses) | | |||||||||||||||
Impaired Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial | | | | | 797 | | | | | | — | | | | | | — | | | | | | 797 | | | | | | (671) | | |
Construction and land development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer and other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (654) | | |
Total | | | | $ | 797 | | | | | $ | — | | | | | $ | — | | | | | $ | 797 | | | | | $ | (1,325) | | |
| | | | | | | | | Fair Value Measurements on December 31, 2020 Using: | | | | | | | | | | | | | | |||||||||||||||||||||
(Dollars in thousands) | | | Total on December 31, 2020 | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | | Total Gains (Losses) | | | | | | |||||||||||||||||||||||
Impaired Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Commercial real estate | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | | | ||||||||
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | ||||||||
Commercial | | | | | 818 | | | | | | — | | | | | | — | | | | | | 818 | | | | | | (8,309) | | | | | | | ||||||||
Construction and land development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | ||||||||
Consumer and other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | ||||||||
Total | | | | $ | 818 | | | | | $ | — | | | | | $ | — | | | | | $ | 818 | | | | | $ | (8,309) | | | | | | |
| | | December 31, 2021 | | ||||||||||||
(Dollars in thousands) | | | Carrying Amount | | | Fair Value | | | Fair Value Hierarchy | | ||||||
Financial Assets: | | | | | | | | | | | | | | | | |
Cash & due from banks, including interest bearing deposits | | | | $ | 583,990 | | | | | $ | 583,990 | | | | Level 1 | |
Federal funds sold | | | | | 13,477 | | | | | | 13,477 | | | | Level 1 | |
Securities, available for sale – taxable | | | | | 175,536 | | | | | | 175,536 | | | | Level 2 | |
Securities, available for sale – tax exempt | | | | | 18,765 | | | | | | 18,765 | | | | Level 2 | |
Securities, held to maturity | | | | | 236 | | | | | | 242 | | | | Level 2 | |
Securities, equity | | | | | 5,838 | | | | | | 5,838 | | | | Level 1 | |
Securities, other equity | | | | | 800 | | | | | | 800 | | | | Level 1 | |
Loans, net | | | | | 1,764,460 | | | | | | 1,779,968 | | | | Level 3 | |
Loans held for sale | | | | | 165 | | | | | | 165 | | | | Level 1 | |
Bank owned life insurance | | | | | 38,485 | | | | | | 38,485 | | | | Level 2 | |
Customer derivatives – interest rate swaps | | | | | 1,144 | | | | | | 1,144 | | | | Level 2 | |
Accrued interest receivable | | | | | 5,272 | | | | | | 5,272 | | | | Level 1, 2 & 3 | |
Financial Liabilities: | | | | | | | | | | | | | | | | |
Deposits | | | | | 2,371,388 | | | | | | 2,372,372 | | | | Level 2 | |
Federal Home Loan Bank advances | | | | | 35,000 | | | | | | 34,274 | | | | Level 2 | |
Line of credit | | | | | 10,000 | | | | | | 10,000 | | | | Level 2 | |
Customer derivatives – interest rate swaps | | | | | 1,144 | | | | | | 1,144 | | | | Level 2 | |
Accrued interest payable | | | | | 263 | | | | | | 263 | | | | Level 2 | |
| | | December 31, 2020 | | ||||||||||||
(Dollars in thousands) | | | Carrying Amount | | | Fair Value | | | Fair Value Hierarchy | | ||||||
Financial Assets: | | | | | | | | | | | | | | | | |
Cash & due from banks, including interest bearing deposits | | | | $ | 191,596 | | | | | $ | 191,596 | | | | Level 1 | |
Federal funds sold | | | | | 25,376 | | | | | | 25,376 | | | | Level 1 | |
Securities, available for sale – taxable | | | | | 65,110 | | | | | | 65,110 | | | | Level 2 | |
Securities, available for sale – tax exempt | | | | | 22,398 | | | | | | 22,398 | | | | Level 2 | |
Securities, held to maturity | | | | | 1,547 | | | | | | 1,561 | | | | Level 2 | |
Securities, equity | | | | | 6,005 | | | | | | 6,005 | | | | Level 1 | |
Loans, net | | | | | 1,641,422 | | | | | | 1,653,401 | | | | Level 3 | |
Loans held for sale | | | | | 1,270 | | | | | | 1,270 | | | | Level 1 | |
Bank owned life insurance | | | | | 37,360 | | | | | | 37,360 | | | | Level 2 | |
Accrued interest receivable | | | | | 6,666 | | | | | | 6,666 | | | | Level 1, 2 & 3 | |
Financial Liabilities: | | | | | | | | | | | | | | | | |
Deposits | | | | | 1,659,543 | | | | | | 1,693,331 | | | | Level 2 | |
Federal Home Loan Bank advances | | | | | 40,000 | | | | | | 37,927 | | | | Level 2 | |
Subordinated debt | | | | | 10,153 | | | | | | 10,153 | | | | Level 2 | |
PPPLF advances | | | | | 101,358 | | | | | | 101,519 | | | | Level 2 | |
Loan participations | | | | | 13,215 | | | | | | 13,215 | | | | Level 2 | |
Accrued interest payable | | | | | 546 | | | | | | 546 | | | | Level 2 | |
(Dollars in thousands) | | | 2021 | | | 2020 | | ||||||
Available lines of credit | | | | $ | 415,402 | | | | | $ | 355,927 | | |
Unfunded loan commitments – fixed | | | | | 62,126 | | | | | | 28,414 | | |
Unfunded loan commitments – variable | | | | | 46,698 | | | | | | 12,215 | | |
Standby letters of credit | | | | | 12,095 | | | | | | 13,036 | | |
Commercial letters of credit | | | | | 2,765 | | | | | | 1,028 | | |
Total credit extension commitments | | | | $ | 539,086 | | | | | $ | 410,620 | | |
| | | Fair Value Measurements at December 31, 2021 Using | | |||||||||||||||||||||
| | | Total | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | ||||||||||||
Impaired loans | | | | $ | 10,846 | | | | | $ | — | | | | | $ | — | | | | | $ | 10,846 | | |
Total | | | | $ | 10,846 | | | | | $ | — | | | | | $ | — | | | | | $ | 10,846 | | |
| | | Fair Value Measurements at December 31, 2020 Using | | |||||||||||||||||||||
| | | Total | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | ||||||||||||
Impaired loans | | | | $ | 13,197 | | | | | $ | — | | | | | $ | — | | | | | $ | 13,197 | | |
Total | | | | $ | 13,197 | | | | | $ | — | | | | | $ | — | | | | | $ | 13,197 | | |
| | | Actual | | | Required for Capital Adequacy Purposes | | | Well Capitalized Prompt Corrective Action Regulations | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Amount | | | Ratio | | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||||||||
December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Capital ratio | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bank | | | | $ | 222,696 | | | | | | 12.9% | | | | | $ | 138,435 | | | | | | 8.0% | | | | | $ | 173,043 | | | | | | 10.0% | | |
Company | | | | | 220,206 | | | | | | 12.7% | | | | | $ | 138,435 | | | | | | 8.0% | | | | | | N/A | | | | | | N/A | | |
Tier 1 Capital ratio | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bank | | | | | 208,997 | | | | | | 12.1% | | | | | $ | 103,826 | | | | | | 6.0% | | | | | | 138,435 | | | | | | 8.0% | | |
Company | | | | | 206,507 | | | | | | 11.9% | | | | | | 103,826 | | | | | | 6.0% | | | | | | N/A | | | | | | N/A | | |
Tier 1 Leverage ratio | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bank | | | | | 208,997 | | | | | | 7.7% | | | | | | 107,877 | | | | | | 4.0% | | | | | | 134,846 | | | | | | 5.0% | | |
Company | | | | | 206,507 | | | | | | 7.7% | | | | | | 107,877 | | | | | | 4.0% | | | | | | N/A | | | | | | N/A | | |
Common Equity Tier 1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bank | | | | | 208,997 | | | | | | 12.1% | | | | | | 77,869 | | | | | | 4.5% | | | | | | 112,478 | | | | | | 6.5% | | |
Company | | | | | 206,507 | | | | | | 11.9% | | | | | | 77,869 | | | | | | 4.5% | | | | | | N/A | | | | | | N/A | | |
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Capital ratio | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bank | | | | $ | 176,633 | | | | | | 12.0% | | | | | $ | 117,298 | | | | | | 8.0% | | | | | $ | 146,623 | | | | | | 10.0% | | |
Company | | | | | 215,977 | | | | | | 14.7% | | | | | | 117,298 | | | | | | 8.0% | | | | | | N/A | | | | | | N/A | | |
Tier 1 Capital ratio | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bank | | | | | 159,448 | | | | | | 10.9% | | | | | | 87,974 | | | | | | 6.0% | | | | | | 117,298 | | | | | | 8.0% | | |
Company | | | | | 188,639 | | | | | | 12.9% | | | | | | 87,974 | | | | | | 6.0% | | | | | | N/A | | | | | | N/A | | |
Tier 1 Leverage ratio | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bank | | | | | 159,448 | | | | | | 8.4% | | | | | | 75,723 | | | | | | 4.0% | | | | | | 94,654 | | | | | | 5.0% | | |
Company | | | | | 188,639 | | | | | | 10.0% | | | | | | 75,723 | | | | | | 4.0% | | | | | | N/A | | | | | | N/A | | |
Common Equity Tier 1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bank | | | | | 159,448 | | | | | | 10.9% | | | | | | 65,980 | | | | | | 4.5% | | | | | | 95,305 | | | | | | 6.5% | | |
Company | | | | | 188,639 | | | | | | 12.9% | | | | | | 65,980 | | | | | | 4.5% | | | | | | N/A | | | | | | N/A | | |
ASSETS | | | 6/30/2022 (Unaudited) | | |||
Cash and cash equivalents | | | | $ | 53,320 | | |
Interest-bearing time deposits in other banks | | | | | — | | |
Debt securities available for sale | | | | | 219,628 | | |
Federal Home Loan Bank stock, at cost (restricted) | | | | | 1,647 | | |
Loans, net | | | | | 728,412 | | |
Bank owned life insurance | | | | | 23,713 | | |
Deferred tax asset, net | | | | | 10,294 | | |
Premises and equipment, net | | | | | 17,557 | | |
Core deposit intangible, net | | | | | 119 | | |
Goodwill | | | | | 3,309 | | |
Accrued interest receivable | | | | | 5,074 | | |
Other assets | | | | | 1,987 | | |
TOTAL ASSETS | | | | $ | 1,065,060 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | |
Noninterest-bearing demand deposits | | | | $ | 426,750 | | |
Interest-bearing demand deposits | | | | | 33,512 | | |
Savings, NOW and money-market deposits | | | | | 397,566 | | |
Time deposits | | | | | 67,083 | | |
Total deposits | | | | | 924,911 | | |
LONG-TERM DEBT | | | | | | | |
Principal amount | | | | | 12,250 | | |
Less unamortized debt issuance costs | | | | | (375) | | |
LONG-TERM DEBT, less unamortized debt issuance costs | | | | | 11,875 | | |
Federal Home Loan Bank advances | | | | | 30,000 | | |
Advance payments by borrowers for taxes and insurance | | | | | 5,373 | | |
Accrued interest payable and other liabilities | | | | | 14,637 | | |
TOTAL LIABILITIES | | | | | 986,796 | | |
STOCKHOLDERS’ EQUITY: | | | | | | | |
Apollo Bancshares, Inc. stockholders’ equity: | | | | | | | |
Preferred stock, $0.01 par value, 50,000,000 shares authorized; none issued or outstanding | | | | | — | | |
Common stock, $0.01 par value, 100,000,000 shares authorized; 3,766,412 shares issued and outstanding | | | | | 38 | | |
Additional paid-in capital | | | | | 44,141 | | |
Retained earnings | | | | | 35,750 | | |
Accumulated other comprehensive income (loss), net of tax effect | | | | | (15,523) | | |
Total Apollo Bancshares, Inc. stockholders’ equity | | | | | 64,406 | | |
Noncontrolling interest | | | | | 13,858 | | |
TOTAL STOCKHOLDERS’ EQUITY | | | | | 78,264 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | $ | 1,065,060 | | |
| | | Number of Shares | | | Weighted- Average Grant-Date Fair Value | | ||||||
Balance on January 1, 2020 | | | | | 99,216 | | | | | $ | 18.98 | | |
Granted | | | | | 37,527 | | | | | | 16.56 | | |
Vested | | | | | (37,794) | | | | | | 18.67 | | |
Forfeited | | | | | (1,551) | | | | | | 19.00 | | |
Expired | | | | | — | | | | | | — | | |
Balance on December 31, 2020 | | | | | 97,398 | | | | | $ | 18.17 | | |
Balance on January 1, 2021 | | | | | 97,398 | | | | | $ | 18.17 | | |
Granted | | | | | 142,736 | | | | | | 15.60 | | |
Vested | | | | | (37,352) | | | | | | 18.66 | | |
Forfeited | | | | | (4,195) | | | | | | 17.99 | | |
Expired | | | | | — | | | | | | — | | |
Balance on December 31, 2021 | | | | | 198,587 | | | | | $ | 16.23 | | |
| | | 6/30/2022 (Unaudited) | | |||
INTEREST AND DIVIDEND INCOME | | | | | | | |
Loans, including fees | | | | $ | 15,351 | | |
Debt securities | | | | | 2,073 | | |
Interest-bearing deposits in other banks | | | | | 138 | | |
Other | | | | | 27 | | |
TOTAL INTEREST AND DIVIDEND INCOME | | | | | 17,589 | | |
INTEREST EXPENSE | | | | | | | |
Deposits | | | | | 686 | | |
Federal Home Loan Bank advances | | | | | 136 | | |
Long-term debt | | | | | 361 | | |
TOTAL INTEREST EXPENSE | | | | | 1,183 | | |
NET INTEREST INCOME | | | | | 16,406 | | |
(REVERSAL OF) PROVISION FOR LOAN LOSSES | | | | | 648 | | |
NET INTEREST INCOME AFTER (REVERSAL OF) PROVISION FOR LOAN LOSSES | | | | | 15,758 | | |
NONINTEREST INCOME | | | | | | | |
Fees for customer services | | | | | 1,433 | | |
Bank owned life insurance income, net | | | | | 277 | | |
Net gain on sales of debt securities available for sale | | | | | 581 | | |
Net gain on sales of foreclosed assets | | | | | 0 | | |
Other | | | | | 54 | | |
TOTAL NONINTEREST INCOME | | | | | 2,345 | | |
NONINTEREST EXPENSES | | | | | | | |
Salaries and employee benefits | | | | | 6,222 | | |
Occupancy and equipment | | | | | 1,521 | | |
Data processing | | | | | 1,048 | | |
Professional fees | | | | | 1,148 | | |
Servicing fees | | | | | 111 | | |
Federal Deposit Insurance Corporation | | | | | 204 | | |
Amortization of core deposit intangible | | | | | 38 | | |
Directors’ fees | | | | | 263 | | |
Other general and administrative | | | | | 811 | | |
TOTAL NONINTEREST EXPENSES | | | | | 11,366 | | |
NET INCOME BEFORE EXPENSE FROM INCOME TAXES | | | | | 6,737 | | |
EXPENSE FROM INCOME TAXES | | | | | 1,595 | | |
NET INCOME | | | | | 5,142 | | |
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | | | | | (831) | | |
NET INCOME ATTRIBUTABLE TO APOLLO BANCSHARES, INC. | | | | $ | 4,311 | | |
| | | Stock Options | | | Weighted- Average Exercise Price | | | Weighted- Average Remaining Contractual Term | | | Aggregate Intrinsic Value | | ||||||||||||
Balance on January 1, 2020 | | | | | 152,100 | | | | | $ | 13.03 | | | | | | | | | | | | | | |
Granted | | | | | — | | | | | | — | | | | | | | | | | | | | | |
MBI Acquisition | | | | | 998,769 | | | | | | 10.17 | | | | | | | | | | | | | | |
Exercised | | | | | (152,328) | | | | | | 8.77 | | | | | | | | | | | | | | |
Expired | | | | | (1,045) | | | | | | 8.31 | | | | | | | | | | | | | | |
Forfeited | | | | | (9,153) | | | | | | 7.05 | | | | | | | | | | | | | | |
Balance on December 31, 2020 | | | | | 988,343 | | | | | | 10.84 | | | | | | 5.02 | | | | | $ | 4,587 | | |
Exercisable on December 31, 2020 | | | | | 965,561 | | | | | $ | 10.79 | | | | | | 4.98 | | | | | $ | 4,525 | | |
Balance on January 1, 2021 | | | | | 988,343 | | | | | $ | 10.84 | | | | | | | | | | | | | | |
Granted | | | | | — | | | | | | — | | | | | | | | | | | | | | |
Exercised | | | | | (155,808) | | | | | | 9.92 | | | | | | | | | | | | | | |
Expired | | | | | (3,000) | | | | | | 13.00 | | | | | | | | | | | | | | |
Forfeited | | | | | — | | | | | | — | | | | | | | | | | | | | | |
Balance on December 31, 2021 | | | | | 829,535 | | | | | | 11.01 | | | | | | 4.44 | | | | | $ | 6,765 | | |
Exercisable on December 31, 2021 | | | | | 829,535 | | | | | $ | 11.01 | | | | | | 4.44 | | | | | $ | 6,765 | | |
(Dollars in thousands) | | | Year Ended December 31, 2021 | | | Year Ended December 31, 2020 | | ||||||
Operating lease and interest cost | | | | $ | 1,464 | | | | | $ | 1,816 | | |
Variable lease cost | | | | | 409 | | | | | | 490 | | |
Total lease cost | | | | $ | 1,873 | | | | | $ | 2,306 | | |
(Dollars in thousands) | | | Year Ended December 31, 2021 | | | Year Ended December 31, 2020 | | ||||||
Operating lease – operating cash flows (fixed payments) | | | | $ | 1,464 | | | | | $ | 1,816 | | |
Operating lease – operating cash flows (liability reduction) | | | | $ | 1,352 | | | | | $ | 1,900 | | |
New ROU assets – operating leases | | | | $ | 179 | | | | | $ | 2,027 | | |
Weighted average lease term (years) – operating leases | | | | | 4.80 | | | | | | 5.60 | | |
Weighted average discount rate – operating leases | | | | | 3.15% | | | | | | 3.11% | | |
(Dollars in thousands) | | | December 31, 2021 | | |||
Operating lease payments due: | | | | | | | |
Within one year | | | | $ | 1,437 | | |
After one but within two years | | | | | 1,420 | | |
After two but within three years | | | | | 1,136 | | |
After three but within four years | | | | | 1,075 | | |
After four years but within five years | | | | | 604 | | |
After five years | | | | | 533 | | |
Total undiscounted cash flows | | | | | 6,205 | | |
Discount on cash flows | | | | | (1,056) | | |
Total operating lease liabilities | | | | $ | 5,149 | | |
(Dollars in thousands) | | | 2021 | | | 2020 | | ||||||
Assets | | | | | | | | | | | | | |
Cash | | | | $ | 5,819 | | | | | $ | 38,547 | | |
Investment in subsidiaries | | | | | 234,814 | | | | | | 186,373 | | |
Other assets | | | | | 930 | | | | | | 50 | | |
| | | | $ | 241,563 | | | | | $ | 224,970 | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | |
Line of credit | | | | | 10,000 | | | | | | — | | |
Subordinated debt | | | | | — | | | | | | 10,153 | | |
Other liabilities | | | | | 39 | | | | | | (748) | | |
Shareholders’ equity | | | | | 231,524 | | | | | | 215,565 | | |
| | | | $ | 241,563 | | | | | $ | 224,970 | | |
(Dollars in thousands) | | | 2021 | | | 2020 | | ||||||
Income | | | | $ | — | | | | | $ | — | | |
Interest expenses | | | | | 393 | | | | | | 458 | | |
Non-interest expenses | | | | | 1,556 | | | | | | 3,347 | | |
Income (loss) before income taxes and equity in undistributed income of subsidiaries | | | | $ | (1,949) | | | | | $ | (3,805) | | |
Income tax provision (benefit) | | | | | (494) | | | | | | (787) | | |
Income (loss) before equity in undistributed income of subsidiaries | | | | | (1,455) | | | | | | (3,018) | | |
Equity in undistributed income of subsidiaries | | | | | 22,819 | | | | | | 11,323 | | |
Net Income | | | | $ | 21,364 | | | | | $ | 8,305 | | |
(Dollars in thousands) | | | 2021 | | | 2020 | | ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Adjustments to reconcile net income to net cash from operating activities: | | | | | | | | | | | | | |
Net income | | | | $ | 21,364 | | | | | $ | 8,305 | | |
Equity in undistributed income of subsidiaries | | | | | (22,819) | | | | | | (11,323) | | |
Depreciation and amortization | | | | | (150) | | | | | | 133 | | |
Net decrease (increase) in other assets | | | | | (883) | | | | | | 626 | | |
Net increase (decrease) in other liabilities | | | | | 787 | | | | | | 9,294 | | |
Net cash provided by (used in) operating activities | | | | | (1,701) | | | | | | 7,035 | | |
Cash flows from investing activities | | | | | | | | | | | | | |
Investment in subsidiaries | | | | | (27,253) | | | | | | (112,657) | | |
Proceeds from acquisition | | | | | — | | | | | | 26,860 | | |
Net cash used in investing activities | | | | | (27,253) | | | | | | (85,797) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Issuance of common stock, net of related expense | | | | | 1,545 | | | | | | 60,967 | | |
Stock based employment benefit plans | | | | | 1,486 | | | | | | 1,065 | | |
MBI acquisition | | | | | — | | | | | | 70,035 | | |
Repayment of subordinated notes payable | | | | | (10,000) | | | | | | — | | |
Proceeds from line of credit | | | | | 10,000 | | | | | | — | | |
Repayment of line of credit | | | | | — | | | | | | (9,999) | | |
Purchase of treasury stock | | | | | (6,805) | | | | | | (5,064) | | |
Net cash provided by financing activities | | | | | (3,774) | | | | | | 117,004 | | |
Increase (decrease) in cash and cash equivalents | | | | | (32,728) | | | | | | 38,242 | | |
Cash and cash equivalents at beginning of year | | | | | 38,547 | | | | | | 305 | | |
Cash and cash equivalents at end of year | | | | $ | 5,819 | | | | | $ | 38,547 | | |
Supplemental cash flow information: | | | | | | | | | | | | | |
Cash paid during the year for taxes | | | | $ | 5,608 | | | | | $ | 3,018 | | |
(In thousands, except per share data) | | | Adjusted Estimated Fair Value | | |||
Number of MBI common shares outstanding | | | | | 3,509,143 | | |
Per share exchange ratio | | | | | 1.2048 | | |
Number of shares of common stock issued | | | | | 4,227,816 | | |
Multiplied by common stock price per share on March 26, 2020 | | | | $ | 15.21 | | |
Value of common stock issued | | | | | 64,305 | | |
Cash paid in lieu of fractional shares | | | | | 1 | | |
Fair value of MBI stock options converted to PFHD options | | | | | 5,729 | | |
Fair value of total consideration transferred | | | | $ | 70,035 | | |
Recognized amounts of identifiable assets acquired and liabilities assumed | | | | | | | |
Cash and cash equivalents | | | | $ | 26,860 | | |
Securities, available for sale | | | | | 27,029 | | |
Securities, held to maturity | | | | | 1,466 | | |
Loans | | | | | 515,304 | | |
Premises and equipment | | | | | 824 | | |
Accrued interest receivable | | | | | 1,525 | | |
Core deposit intangibles | | | | | 1,646 | | |
Other assets | | | | | 9,143 | | |
Total assets acquired | | | | | 583,797 | | |
Deposits | | | | | 498,110 | | |
Federal Home Loan Bank advances | | | | | 25,103 | | |
Subordinated notes payable | | | | | 10,285 | | |
Accrued interest payable | | | | | 610 | | |
Other liabilities | | | | | 4,275 | | |
Total liabilities assumed | | | | | 538,383 | | |
Total identifiable net assets | | | | | 45,414 | | |
Goodwill | | | | $ | 24,621 | | |
| | | June 30, 2022 | | | December 31, 2021 | | ||||||
ASSETS | | | | | | | | | | | | | |
Cash and due from banks | | | | $ | 41,202 | | | | | $ | 38,469 | | |
Interest earning deposits | | | | | 299,834 | | | | | | 545,521 | | |
Federal funds sold | | | | | 27,043 | | | | | | 13,477 | | |
Cash and cash equivalents | | | | | 368,079 | | | | | | 597,467 | | |
Securities available for sale, at fair value – taxable | | | | | 164,354 | | | | | | 175,536 | | |
Securities available for sale, at fair value – tax-exempt | | | | | 27,453 | | | | | | 18,765 | | |
Securities held to maturity (fair value June 30, 2022 – $197, December 31, 2021 – $242) | | | | | 204 | | | | | | 236 | | |
Equity securities | | | | | 6,359 | | | | | | 6,638 | | |
Loans, net of allowance of $15,142 and $12,704 as of June 30, 2022 and December 31, 2021, respectively | | | | | 1,972,091 | | | | | | 1,764,460 | | |
Loans held for sale | | | | | — | | | | | | 165 | | |
Premises and equipment, net | | | | | 8,570 | | | | | | 9,020 | | |
Bank owned life insurance | | | | | 54,134 | | | | | | 38,485 | | |
Goodwill and intangibles | | | | | 25,639 | | | | | | 25,766 | | |
Other assets | | | | | 34,631 | | | | | | 27,573 | | |
Total assets | | | | $ | 2,661,514 | | | | | $ | 2,664,111 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | | |
Demand – noninterest bearing | | | | $ | 777,501 | | | | | $ | 674,003 | | |
Demand – interest bearing | | | | | 339,942 | | | | | | 310,362 | | |
Money market and savings | | | | | 1,055,813 | | | | | | 1,121,330 | | |
Time deposits | | | | | 208,479 | | | | | | 265,693 | | |
Total deposits | | | | | 2,381,735 | | | | | | 2,371,388 | | |
Federal Home Loan Bank advances | | | | | — | | | | | | 35,000 | | |
Official checks | | | | | 5,815 | | | | | | 4,125 | | |
Other borrowings | | | | | — | | | | | | 10,000 | | |
Subordinated debt | | | | | 24,436 | | | | | | — | | |
Accrued interest and other liabilities | | | | | 15,930 | | | | | | 12,074 | | |
Total liabilities | | | | | 2,427,916 | | | | | | 2,432,587 | | |
Stockholders’ equity | | | | | | | | | | | | | |
Preferred stock, 10,000,000 shares authorized, none issued | | | | | — | | | | | | — | | |
Class A Voting Common stock, $0.01 par value; authorized 50,000,000 shares, issued 14,699,975 and outstanding 13,742,381 shares as of June 30, 2022, and authorized 50,000,000 shares, issued 14,393,750 and outstanding 13,446,400 shares at December 31, 2021 | | | | | 147 | | | | | | 144 | | |
Class B Non-Voting Common stock, $0.01par value; 10,000,000 shares authorized, none issued and outstanding on June 30, 2022 and December 31, 2021 | | | | | — | | | | | | — | | |
Treasury stock, at cost | | | | | (16,201) | | | | | | (16,003) | | |
Additional paid-in capital | | | | | 215,541 | | | | | | 212,012 | | |
Retained earnings | | | | | 45,533 | | | | | | 36,120 | | |
Accumulated other comprehensive income (loss) | | | | | (11,422) | | | | | | (749) | | |
Total stockholders’ equity | | | | | 233,598 | | | | | | 231,524 | | |
Total liabilities and stockholders’ equity | | | | $ | 2,661,514 | | | | | $ | 2,664,111 | | |
| | | Three Months Ended June 30, | | | Six Months Ended June 30, | | ||||||||||||||||||
| | | 2022 | | | 2021 | | | 2022 | | | 2021 | | ||||||||||||
Interest income | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans, including fees | | | | $ | 21,600 | | | | | $ | 18,311 | | | | | $ | 41,380 | | | | | $ | 37,544 | | |
Investment securities – taxable | | | | | 704 | | | | | | 161 | | | | | | 1,342 | | | | | | 340 | | |
Investment securities – tax-exempt | | | | | 232 | | | | | | 189 | | | | | | 445 | | | | | | 392 | | |
Dividend income on restricted stock | | | | | 105 | | | | | | 99 | | | | | | 202 | | | | | | 194 | | |
Other | | | | | 1,029 | | | | | | 202 | | | | | | 1,323 | | | | | | 264 | | |
Total interest income | | | | | 23,670 | | | | | | 18,962 | | | | | | 44,692 | | | | | | 38,734 | | |
Interest expense | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | | 1,491 | | | | | | 1,430 | | | | | | 3,077 | | | | | | 2,747 | | |
Federal Home Loan Bank advances | | | | | 3 | | | | | | 190 | | | | | | 137 | | | | | | 386 | | |
Subordinated debt | | | | | 266 | | | | | | 77 | | | | | | 498 | | | | | | 207 | | |
Other borrowings | | | | | 1 | | | | | | 63 | | | | | | 24 | | | | | | 313 | | |
Total interest expense | | | | | 1,761 | | | | | | 1,760 | | | | | | 3,736 | | | | | | 3,653 | | |
Net interest income | | | | | 21,909 | | | | | | 17,202 | | | | | | 40,956 | | | | | | 35,081 | | |
Provision for loan losses | | | | | 2,240 | | | | | | 762 | | | | | | 3,091 | | | | | | 1,800 | | |
Net interest income after provision for loan losses | | | | | 19,669 | | | | | | 16,440 | | | | | | 37,865 | | | | | | 33,281 | | |
Noninterest income | | | | | | | | | | | | | | | | | | | | | | | | | |
Service charges on deposit accounts | | | | | 577 | | | | | | 1,199 | | | | | | 1,094 | | | | | | 1,594 | | |
Income from bank owned life insurance | | | | | 376 | | | | | | 281 | | | | | | 649 | | | | | | 563 | | |
SBA origination fees | | | | | 48 | | | | | | — | | | | | | 48 | | | | | | 145 | | |
Swap fee income | | | | | — | | | | | | 364 | | | | | | 112 | | | | | | 573 | | |
Loans held for sale income | | | | | 45 | | | | | | 226 | | | | | | 116 | | | | | | 301 | | |
Gain on sale and call of securities | | | | | 13 | | | | | | 21 | | | | | | 13 | | | | | | 22 | | |
Other | | | | | 722 | | | | | | 211 | | | | | | 1,022 | | | | | | 223 | | |
Total noninterest income | | | | | 1,781 | | | | | | 2,302 | | | | | | 3,054 | | | | | | 3,421 | | |
Noninterest expense | | | | | | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | | | 7,473 | | | | | | 7,099 | | | | | | 18,693 | | | | | | 13,883 | | |
Occupancy and equipment | | | | | 1,010 | | | | | | 905 | | | | | | 2,012 | | | | | | 2,007 | | |
Data processing | | | | | 304 | | | | | | 276 | | | | | | 618 | | | | | | 566 | | |
Marketing | | | | | 125 | | | | | | 165 | | | | | | 321 | | | | | | 318 | | |
Professional fees | | | | | 886 | | | | | | 770 | | | | | | 1,805 | | | | | | 1,398 | | |
Acquisition expenses | | | | | — | | | | | | — | | | | | | — | | | | | | 684 | | |
Regulatory assessments | | | | | 473 | | | | | | 418 | | | | | | 1,022 | | | | | | 767 | | |
Other | | | | | 2,333 | | | | | | 1,321 | | | | | | 4,628 | | | | | | 3,119 | | |
Total noninterest expense | | | | | 12,604 | | | | | | 10,954 | | | | | | 29,099 | | | | | | 22,742 | | |
Income before income taxes | | | | | 8,846 | | | | | | 7,788 | | | | | | 11,820 | | | | | | 13,960 | | |
Income tax provision | | | | | 1,852 | | | | | | 1,457 | | | | | | 2,407 | | | | | | 2,844 | | |
Net income | | | | $ | 6,994 | | | | | $ | 6,331 | | | | | $ | 9,413 | | | | | $ | 11,116 | | |
Earnings per share: | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | | $ | 0.52 | | | | | $ | 0.47 | | | | | $ | 0.70 | | | | | $ | 0.83 | | |
Diluted | | | | $ | 0.50 | | | | | $ | 0.45 | | | | | $ | 0.67 | | | | | $ | 0.80 | | |
Other comprehensive income: | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized holding gain (loss) on securities available for sale | | | | | (5,841) | | | | | | (505) | | | | | | (14,308) | | | | | | (794) | | |
Tax effect | | | | | 1,481 | | | | | | 124 | | | | | | 3,635 | | | | | | 195 | | |
Other comprehensive gain (loss), net of tax | | | | | (4,360) | | | | | | (381) | | | | | | (10,673) | | | | | | (599) | | |
Comprehensive income (loss) | | | | $ | 2,634 | | | | | $ | 5,950 | | | | | $ | (1,260) | | | | | $ | 10,517 | | |
| | | Common Stock | | | Treasury Stock | | | Additional Paid-in Capital | | | Retained Earnings | | | Accumulated Other Comprehensive Income (Loss) | | | Total | | ||||||||||||||||||||||||
| | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||||||
Balance on December 31, 2020 | | | | | 13,534,829 | | | | | $ | 141 | | | | | $ | (9,209) | | | | | $ | 208,995 | | | | | $ | 14,756 | | | | | $ | 882 | | | | | $ | 215,565 | | |
Employee stock purchase plan | | | | | 1,851 | | | | | | — | | | | | | — | | | | | | 34 | | | | | | — | | | | | | — | | | | | | 34 | | |
Stock based compensation | | | | | — | | | | | | 1 | | | | | | — | | | | | | 709 | | | | | | — | | | | | | — | | | | | | 710 | | |
Exercise of stock options | | | | | 64,414 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Restricted stock issued | | | | | 122,455 | | | | | | 1 | | | | | | — | | | | | | 543 | | | | | | — | | | | | | — | | | | | | 544 | | |
Treasury stock | | | | | (247,768) | | | | | | — | | | | | | (4,335) | | | | | | (7) | | | | | | — | | | | | | — | | | | | | (4,342) | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 11,116 | | | | | | — | | | | | | 11,116 | | |
Other comprehensive income (loss) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (599) | | | | | | (599) | | |
Balance on June 30, 2021 | | | | | 13,475,781 | | | | | $ | 143 | | | | | $ | (13,544) | | | | | $ | 210,274 | | | | | $ | 25,872 | | | | | $ | 283 | | | | | $ | 223,028 | | |
Balance on December 31, 2021 | | | | | 13,446,400 | | | | | $ | 144 | | | | | $ | (16,003) | | | | | $ | 212,012 | | | | | $ | 36,120 | | | | | $ | (749) | | | | | $ | 231,524 | | |
Stock based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | 2,230 | | | | | | — | | | | | | — | | | | | | 2,230 | | |
Exercise of stock options | | | | | 115,472 | | | | | | 1 | | | | | | — | | | | | | 1,301 | | | | | | — | | | | | | — | | | | | | 1,302 | | |
Restricted stock issued | | | | | 190,753 | | | | | | 2 | | | | | | — | | | | | | (2) | | | | | | — | | | | | | — | | | | | | — | | |
Treasury stock | | | | | (10,244) | | | | | | — | | | | | | (198) | | | | | | — | | | | | | — | | | | | | — | | | | | | (198) | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 9,413 | | | | | | — | | | | | | 9,413 | | |
Other comprehensive income (loss) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (10,673) | | | | | | (10,673) | | |
June 30, 2022 | | | | | 13,742,381 | | | | | $ | 147 | | | | | $ | (16,201) | | | | | $ | 215,541 | | | | | $ | 45,533 | | | | | $ | (11,422) | | | | | $ | 233,598 | | |
Balance on March 31, 2021 | | | | | 13,661,567 | | | | | $ | 143 | | | | | $ | (10,087) | | | | | $ | 209,770 | | | | | $ | 19,541 | | | | | $ | 664 | | | | | $ | 220,031 | | |
Employee stock purchase plan | | | | | 978 | | | | | | — | | | | | | — | | | | | | 18 | | | | | | — | | | | | | — | | | | | | 18 | | |
Stock based compensation expense | | | | | — | | | | | | — | | | | | | — | | | | | | 385 | | | | | | — | | | | | | — | | | | | | 385 | | |
Exercise of stock options | | | | | 8,359 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Restricted stock issued | | | | | (1,834) | | | | | | — | | | | | | — | | | | | | 107 | | | | | | — | | | | | | — | | | | | | 107 | | |
Treasury stock | | | | | (193,289) | | | | | | — | | | | | | (3,457) | | | | | | (6) | | | | | | — | | | | | | — | | | | | | (3,463) | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,331 | | | | | | — | | | | | | 6,331 | | |
Other comprehensive income (loss) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (381) | | | | | | (381) | | |
Balance on June 30, 2021 | | | | | 13,475,781 | | | | | $ | 143 | | | | | $ | (13,544) | | | | | $ | 210,274 | | | | | $ | 25,872 | | | | | $ | 283 | | | | | $ | 223,028 | | |
Balance on March 31, 2022 | | | | | 13,665,801 | | | | | $ | 146 | | | | | $ | (16,201) | | | | | $ | 214,351 | | | | | $ | 38,539 | | | | | $ | (7,062) | | | | | $ | 229,773 | | |
Stock based compensation expense | | | | | — | | | | | | — | | | | | | — | | | | | | 505 | | | | | | — | | | | | | — | | | | | | 505 | | |
Exercise of stock options | | | | | 55,807 | | | | | | 1 | | | | | | — | | | | | | 685 | | | | | | — | | | | | | — | | | | | | 686 | | |
Restricted stock issued | | | | | 20,773 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | — | ��� | | | | | 6,994 | | | | | | — | | | | | | 6,994 | | |
Other comprehensive income (loss) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,360) | | | | | | (4,360) | | |
Balance on June 30, 2022 | | | | | 13,742,381 | | | | | $ | 147 | | | | | $ | (16,201) | | | | | $ | 215,541 | | | | | $ | 45,533 | | | | | $ | (11,422) | | | | | $ | 233,598 | | |
| | | Six Months Ended June 30, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net income | | | | $ | 9,413 | | | | | $ | 11,116 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | |
Provision for loan losses | | | | | 3,091 | | | | | | 1,800 | | |
Amortization of purchase accounting adjustments | | | | | (3,262) | | | | | | (2,581) | | |
Depreciation and amortization | | | | | 89 | | | | | | 702 | | |
Gain on call of securities | | | | | (13) | | | | | | (22) | | |
Gain on loans held for sale | | | | | (116) | | | | | | (301) | | |
Equity unrealized change in market value | | | | | 336 | | | | | | 63 | | |
Net amortization of securities | | | | | 726 | | | | | | 1,396 | | |
Net amortization of deferred loan fees | | | | | (2,865) | | | | | | (4,400) | | |
Originations of loans held for sale | | | | | (7,713) | | | | | | (15,728) | | |
Proceeds from sales of loans held for sale | | | | | 7,994 | | | | | | 15,260 | | |
Income from bank-owned life insurance | | | | | (649) | | | | | | (563) | | |
Loss (gain) on disposal of premises and equipment | | | | | (1) | | | | | | 137 | | |
Employee stock purchase plan | | | | | — | | | | | | 34 | | |
Stock compensation | | | | | 2,230 | | | | | | 710 | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Accrued interest receivable | | | | | 8 | | | | | | 1,217 | | |
Other assets | | | | | (3,823) | | | | | | 811 | | |
Official checks, accrued interest, interest payable and other liabilities | | | | | 5,630 | | | | | | (1,227) | | |
Net cash provided by (used in) operating activities | | | | | 11,075 | | | | | | 8,424 | | |
Cash flows from investing activities | | | | | | | | | | | | | |
Proceeds from maturities and paydowns of securities available for sale | | | | | 14,036 | | | | | | 11,123 | | |
Proceeds from calls of securities available for sale | | | | | 4,175 | | | | | | 4,648 | | |
Proceeds from paydowns of securities held to maturity | | | | | 31 | | | | | | 257 | | |
Purchase of securities available for sale | | | | | (30,737) | | | | | | (50,922) | | |
Purchase of equity securities | | | | | (57) | | | | | | — | | |
Loans originations, net of principal repayments | | | | | (204,791) | | | | | | (45,437) | | |
Redemption of Federal Reserve Bank stock | | | | | (589) | | | | | | — | | |
Purchase of Federal Home Loan Bank Stock | | | | | — | | | | | | (192) | | |
Net redemption of Federal Home Loan Bank Stock | | | | | 981 | | | | | | 888 | | |
Purchase of bank-owned life insurance | | | | | (15,000) | | | | | | — | | |
Purchases of premises and equipment, net | | | | | (206) | | | | | | (1,376) | | |
Net cash used in investing activities | | | | | (232,157) | | | | | | (81,011) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Net increase in deposits | | | | | 10,590 | | | | | | 618,107 | | |
Proceeds from issuance of stock, net of issuance costs | | | | | 1,302 | | | | | | 544 | | |
Purchase of treasury stock | | | | | (198) | | | | | | (4,342) | | |
Repayments of Federal Home Loan advances | | | | | (35,000) | | | | | | (5,000) | | |
Net proceeds from issuance of subordinated notes payable | | | | | 25,000 | | | | | | — | | |
Repayment of line of credit | | | | | (10,000) | | | | | | — | | |
Repayments of PPPLF advances | | | | | — | | | | | | (101,358) | | |
Net cash provided by (used in) financing activities | | | | | (8,306) | | | | | | 507,951 | | |
Increase (decrease) in cash and cash equivalents | | | | | (229,388) | | | | | | 435,364 | | |
Cash and cash equivalents at beginning of period | | | | | 597,467 | | | | | | 216,972 | | |
Cash and cash equivalents at end of period | | | | $ | 368,079 | | | | | $ | 652,336 | | |
Supplemental cash flow information: | | | | | | | | | | | | | |
Cash paid during the period for interest | | | | $ | 3,872 | | | | | $ | 4,425 | | |
Cash paid during the period for taxes | | | | | 3,956 | | | | | | 3,000 | | |
| Description | | | In March 2022, FASB issued ASU 2022-02 which eliminates the guidance on troubled debt restructurings and requires entities to evaluate all loan modifications to determine if they result in a new loan or a continuation of the existing loan. ASU 2022-02 also requires that entities disclose current-period gross charge-offs by year of origination for loans and leases. | |
| Date of Adoption | | | ASU 2022-02 is effective January 1, 2023. | |
| Effect on the Consolidated Financial Statements | | | This ASU will have an impact on our financial statement disclosures but not a material impact on our financial statements. | |
| Description | | | In June 2022, FASB issued ASU 2022-03 which clarifies that a contractual sale restriction should not be considered in measuring fair value. ASU 2022-03 also requires that entities disclose certain qualitative and quantitative information about securities with contractual sale restrictions. | |
| Date of Adoption | | | ASU 2022-03 is effective January 1, 2023. | |
| Effect on the Consolidated Financial Statements | | | We are evaluating the impact of this ASU, however it is not believed to be material. | |
| | | Three Months Ended June 30, | | | Six Months Ended June 30, | | ||||||||||||||||||
(Dollar amounts in thousands, except per share data) | | | 2022 | | | 2021 | | | 2022 | | | 2021 | | ||||||||||||
Basic earnings per share: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | | | $ | 6,994 | | | | | $ | 6,331 | | | | | $ | 9,413 | | | | | $ | 11,116 | | |
Total weighted average common stock outstanding | | | | | 13,446,335 | | | | | | 13,397,747 | | | | | | 13,396,240 | | | | | | 13,419,929 | | |
Net income per share | | | | $ | 0.52 | | | | | $ | 0.47 | | | | | $ | 0.70 | | | | | $ | 0.83 | | |
Diluted earnings per share: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | | | $ | 6,994 | | | | | $ | 6,331 | | | | | $ | 9,413 | | | | | $ | 11,116 | | |
Total weighted average common stock outstanding | | | | | 13,446,335 | | | | | | 13,397,747 | | | | | | 13,396,240 | | | | | | 13,419,929 | | |
Add: dilutive effect of employee restricted stock and options | | | | | 628,550 | | | | | | 564,822 | | | | | | 614,006 | | | | | | 521,900 | | |
Total weighted average diluted stock outstanding | | | | | 14,074,885 | | | | | | 13,962,569 | | | | | | 14,010,246 | | | | | | 13,941,829 | | |
Net income per share | | | | $ | 0.50 | | | | | $ | 0.45 | | | | | $ | 0.67 | | | | | $ | 0.80 | | |
Anti-dilutive restricted stock and options | | | | | 29,250 | | | | | | 270,850 | | | | | | 65,672 | | | | | | 270,850 | | |
(Dollars in thousands) | | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
June 30, 2022 | | | | | | | | | | | | | | | | | | | | | | | | | |
Available for sale – taxable | | | | | | | | | | | | | | | | | | | | | | | | | |
Small Business Administration loan pools | | | | $ | 35,355 | | | | | $ | 33 | | | | | $ | (442) | | | | | $ | 34,946 | | |
Mortgage-backed securities(1) | | | | | 138,666 | | | | | | — | | | | | | (13,529) | | | | | | 125,137 | | |
United States agency obligations | | | | | 2,945 | | | | | | — | | | | | | (178) | | | | | | 2,767 | | |
Corporate bonds | | | | | 1,500 | | | | | | 4 | | | | | | — | | | | | | 1,504 | | |
Total available for sale – taxable | | | | $ | 178,466 | | | | | $ | 37 | | | | | $ | (14,149) | | | | | $ | 164,354 | | |
Available for sale – tax-exempt | | | | | | | | | | | | | | | | | | | | | | | | | |
Community Development District bonds | | | | $ | 25,488 | | | | | $ | 13 | | | | | $ | (1,069) | | | | | $ | 24,432 | | |
Municipals | | | | | 3,155 | | | | | | — | | | | | | (134) | | | | | | 3,021 | | |
Total available for sale – tax-exempt | | | | $ | 28,643 | | | | | $ | 13 | | | | | $ | (1,203) | | | | | $ | 27,453 | | |
| | | Amortized Cost | | | Gross Unrecognized Gains | | | Gross Unrecognized Losses | | | Fair Value | | ||||||||||||
Held to Maturity | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential mortgage-backed securities | | | | $ | 204 | | | | | $ | — | | | | | $ | (7) | | | | | $ | 197 | | |
Total Held to Maturity | | | | $ | 204 | | | | | $ | — | | | | | $ | (7) | | | | | $ | 197 | | |
| | | Amortized Cost | | | Gross Unrecognized Gains | | | Gross Unrecognized Losses | | | Fair Value | | ||||||||||||
Equity | | | | | | | | | | | | | | | | | | | | | | | | | |
Mutual Funds | | | | $ | 5,502 | | | | | $ | — | | | | | $ | — | | | | | $ | 5,502 | | |
Other equity securities | | | | | 857 | | | | | | — | | | | | | — | | | | | | 857 | | |
Total Equity | | | | $ | 6,359 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,359 | | |
(Dollars in thousands) | | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | ||||||||||||
December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | |
Available for sale – taxable | | | | | | | | | | | | | | | | | | | | | | | | | |
Small Business Administration loan pools | | | | $ | 40,368 | | | | | $ | 38 | | | | | $ | (472) | | | | | $ | 39,934 | | |
Mortgage-backed securities(1) | | | | | 131,273 | | | | | | 70 | | | | | | (1,240) | | | | | | 130,103 | | |
United States agency obligations | | | | | 3,939 | | | | | | 54 | | | | | | (7) | | | | | | 3,986 | | |
Corporate bonds | | | | | 1,500 | | | | | | 13 | | | | | | — | | | | | | 1,513 | | |
Total available for sale – taxable | | | | $ | 177,080 | | | | | $ | 175 | | | | | $ | (1,719) | | | | | $ | 175,536 | | |
Available for sale – tax-exempt | | | | | | | | | | | | | | | | | | | | | | | | | |
Community development district bonds | | | | $ | 17,163 | | | | | $ | 512 | | | | | $ | (1) | | | | | $ | 17,674 | | |
Municipals | | | | | 1,051 | | | | | | 40 | | | | | | — | | | | | | 1,091 | | |
Total available for sale – tax-exempt | | | | $ | 18,214 | | | | | $ | 552 | | | | | $ | (1) | | | | | $ | 18,765 | | |
| | | Amortized Cost | | | Gross Unrecognized Gains | | | Gross Unrecognized Losses | | | Fair Value | | ||||||||||||
Held to Maturity | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential mortgage-backed securities | | | | $ | 236 | | | | | $ | 6 | | | | | $ | — | | | | | $ | 242 | | |
Total held to maturity | | | | $ | 236 | | | | | $ | 6 | | | | | $ | — | | | | | $ | 242 | | |
| | | Amortized Cost | | | Gross Unrecognized Gains | | | Gross Unrecognized Losses | | | Fair Value | | ||||||||||||
Equity | | | | | | | | | | | | | | | | | | | | | | | | | |
Mutual funds | | | | $ | 5,838 | | | | | $ | — | | | | | $ | — | | | | | $ | 5,838 | | |
Other equity securities | | | | | 800 | | | | | | — | | | | | | — | | | | | | 800 | | |
Total equity | | | | $ | 6,638 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,638 | | |
| | | June 30, 2022 | | |||||||||
(Dollars in thousands) | | | Amortized Cost | | | Fair Value | | ||||||
Available for sale | | | | | | | | | | | | | |
Due in one year or less | | | | $ | 5,440 | | | | | $ | 5,426 | | |
Due after one year through five years | | | | | 22,955 | | | | | | 21,971 | | |
Due after five years through ten years | | | | | 4,693 | | | | | | 4,327 | | |
Due after ten years | | | | | — | | | | | | — | | |
Subtotal | | | | | 33,088 | | | | | | 31,724 | | |
Small Business Administration loan pools | | | | | 35,355 | | | | | | 34,946 | | |
Mortgage-backed securities | | | | | 138,666 | | | | | | 125,137 | | |
Total available for sale | | | | $ | 207,109 | | | | | $ | 191,807 | | |
Held to maturity | | | | | | | | | | | | | |
Mortgage-backed securities | | | | $ | 204 | | | | | $ | 197 | | |
Total held to maturity | | | | $ | 204 | | | | | $ | 197 | | |
| | | Less Than 12 Months | | | 12 Months or Longer | | | Total | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Fair Value | | | Unrealized Losses | | | Fair Value | | | Unrealized Losses | | | Fair Value | | | Unrealized Losses | | ||||||||||||||||||
June 30, 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Available for sale – taxable | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Small Business Administration loan pools | | | | $ | 4,145 | | | | | $ | (79) | | | | | $ | 24,445 | | | | | $ | (363) | | | | | $ | 28,590 | | | | | $ | (442) | | |
Mortgage-backed securities | | | | | 114,856 | | | | | | (12,206) | | | | | | 10,375 | | | | | | (1,323) | | | | | | 125,231 | | | | | | (13,529) | | |
United States agency obligations | | | | | 2,767 | | | | | | (178) | | | | | | — | | | | | | — | | | | | | 2,767 | | | | | | (178) | | |
Total available for sale – taxable | | | | $ | 121,768 | | | | | $ | (12,463) | | | | | $ | 34,820 | | | | | $ | (1,686) | | | | | $ | 156,588 | | | | | $ | (14,149) | | |
Available for sale – tax-exempt | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Community Development District bonds | | | | $ | 20,627 | | | | | $ | (1,069) | | | | | $ | — | | | | | $ | — | | | | | $ | 20,627 | | | | | $ | (1,069) | | |
Municipals | | | | | 3,020 | | | | | | (134) | | | | | | — | | | | | | — | | | | | | 3,020 | | | | | | (134) | | |
Total available for sale – tax-exempt | | | | $ | 23,647 | | | | | $ | (1,203) | | | | | $ | — | | | | | $ | — | | | | | $ | 23,647 | | | | | $ | (1,203) | | |
| | | Less Than 12 Months | | | 12 Months or Longer | | | Total | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Fair Value | | | Unrealized Losses | | | Fair Value | | | Unrealized Losses | | | Fair Value | | | Unrealized Losses | | ||||||||||||||||||
December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Available for sale – taxable | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Small Business Administration loan pools | | | | $ | 17,428 | | | | | $ | (335) | | | | | $ | 14,872 | | | | | $ | (136) | | | | | $ | 32,300 | | | | | $ | (471) | | |
Mortgage-backed securities | | | | | 109,621 | | | | | | (1,168) | | | | | | 1,710 | | | | | | (73) | | | | | | 111,331 | | | | | | (1,241) | | |
United States agency obligations | | | | | 1,930 | | | | | | (7) | | | | | | — | | | | | | — | | | | | | 1,930 | | | | | | (7) | | |
Total available for sale – taxable | | | | $ | 128,979 | | | | | $ | (1,510) | | | | | $ | 16,582 | | | | | $ | (209) | | | | | $ | 145,561 | | | | | $ | (1,719) | | |
Available for sale – tax-exempt | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Community Development District bonds | | | | $ | 809 | | | | | $ | (1) | | | | | $ | — | | | | | $ | — | | | | | $ | 809 | | | | | $ | (1) | | |
Total available for sale – tax-exempt | | | | $ | 809 | | | | | $ | (1) | | | | | $ | — | | | | | $ | — | | | | | $ | 809 | | | | | $ | (1) | | |
|
(Dollars in thousands) | | | June 30, 2022 | | | December 31, 2021 | | ||||||
Loans held for investment: | | | | | | | | | | | | | |
Commercial real estate | | | | $ | 1,034,487 | | | | | $ | 902,654 | | |
Residential real estate | | | | | 422,239 | | | | | | 377,511 | | |
Commercial (non-PPP) | | | | | 387,317 | | | | | | 325,415 | | |
Commercial (PPP) | | | | | 8,176 | | | | | | 58,615 | | |
Construction and land development | | | | | 114,938 | | | | | | 91,520 | | |
Consumer and other | | | | | 20,076 | | | | | | 21,449 | | |
Total loans held for investment, gross | | | | | 1,987,233 | | | | | | 1,777,164 | | |
Allowance for loan losses | | | | | (15,142) | | | | | | (12,704) | | |
Loans held for investment, net | | | | $ | 1,972,091 | | | | | $ | 1,764,460 | | |
Loans held for sale: | | | | | | | | | | | | | |
Loans held for sale | | | | $ | — | | | | | $ | 165 | | |
Total loans held for sale | | | | $ | — | | | | | $ | 165 | | |
(Dollars in thousands) | | | 30 – 59 Days Past Due | | | 60 – 89 Days Past Due | | | Greater than 90 Days Past Due | | | Nonaccrual | | | Total Past Due | | | Loans Not Past Due | | | Total | | |||||||||||||||||||||
June 30, 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | — | | | | | $ | 284 | | | | | $ | — | | | | | $ | — | | | | | $ | 284 | | | | | $ | 1,034,203 | | | | | $ | 1,034,487 | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 422,239 | | | | | | 422,239 | | |
Commercial (non-PPP) | | | | | 326 | | | | | | 88 | | | | | | — | | | | | | 1,468 | | | | | | 1,882 | | | | | | 385,435 | | | | | | 387,317 | | |
Commercial (PPP) | | | | | 178 | | | | | | 7 | | | | | | — | | | | | | — | | | | | | 185 | | | | | | 7,991 | | | | | | 8,176 | | |
Construction and land development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 114,938 | | | | | | 114,938 | | |
Consumer and other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 20,076 | | | | | | 20,076 | | |
Total | | | | $ | 504 | | | | | $ | 379 | | | | | $ | — | | | | | $ | 1,468 | | | | | $ | 2,351 | | | | | $ | 1,984,882 | | | | | $ | 1,987,233 | | |
(Dollars in thousands) | | | 30 – 59 Days Past Due | | | 60 – 89 Days Past Due | | | Greater than 90 Days Past Due | | | Nonaccrual | | | Total Past Due | | | Loans Not Past Due | | | Total | | |||||||||||||||||||||
December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | 292 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 292 | | | | | $ | 902,362 | | | | | $ | 902,654 | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 377,511 | | | | | | 377,511 | | |
Commercial (non-PPP) | | | | | 449 | | | | | | — | | | | | | — | | | | | | 1,468 | | | | | | 1,917 | | | | | | 323,498 | | | | | | 325,415 | | |
Commercial (PPP) | | | | | 7 | | | | | | — | | | | | | — | | | | | | — | | | | | | 7 | | | | | | 58,608 | | | | | | 58,615 | | |
Construction and land development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 91,520 | | | | | | 91,520 | | |
Consumer and other | | | | | — | | | | | | — | | | | | | — | | | | | | 654 | | | | | | 654 | | | | | | 20,795 | | | | | | 21,449 | | |
Total | | | | $ | 748 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,122 | | | | | $ | 2,870 | | | | | $ | 1,774,294 | | | | | $ | 1,777,164 | | |
(Dollars in thousands) | | | Pass | | | Special Mention | | | Substandard | | | Doubtful | | | Total | | |||||||||||||||
June 30, 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | 1,031,944 | | | | | $ | 285 | | | | | $ | 2,258 | | | | | $ | — | | | | | $ | 1,034,487 | | |
Residential real estate | | | | | 421,199 | | | | | | 1,040 | | | | | | — | | | | | | — | | | | | | 422,239 | | |
Commercial (non-PPP) | | | | | 385,435 | | | | | | 414 | | | | | | 1,468 | | | | | | — | | | | | | 387,317 | | |
Commercial (PPP) | | | | | 8,176 | | | | | | — | | | | | | — | | | | | | — | | | | | | 8,176 | | |
Construction and land development | | | | | 114,938 | | | | | | — | | | | | | — | | | | | | — | | | | | | 114,938 | | |
Consumer | | | | | 20,004 | | | | | | 72 | | | | | | — | | | | | | — | | | | | | 20,076 | | |
Total | | | | $ | 1,981,696 | | | | | $ | 1,811 | | | | | $ | 3,726 | | | | | $ | — | | | | | $ | 1,987,233 | | |
December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | 900,364 | | | | | $ | — | | | | | $ | 2,290 | | | | | $ | — | | | | | $ | 902,654 | | |
Residential real estate | | | | | 377,511 | | | | | | — | | | | | | — | | | | | | — | | | | | | 377,511 | | |
Commercial (non-PPP) | | | | | 323,657 | | | | | | 290 | | | | | | 1,468 | | | | | | — | | | | | | 325,415 | | |
Commercial (PPP) | | | | | 58,615 | | | | | | — | | | | | | — | | | | | | — | | | | | | 58,615 | | |
Construction and land development | | | | | 91,520 | | | | | | — | | | | | | — | | | | | | — | | | | | | 91,520 | | |
Consumer | | | | | 20,712 | | | | | | 83 | | | | | | — | | | | | | 654 | | | | | | 21,449 | | |
Total | | | | $ | 1,772,379 | | | | | $ | 373 | | | | | $ | 3,758 | | | | | $ | 654 | | | | | $ | 1,777,164 | | |
(Dollars in thousands) | | | June 30, 2022 | | | December 31, 2021 | | ||||||
Commercial real estate | | | | $ | 5,804 | | | | | $ | 5,845 | | |
Residential real estate | | | | | — | | | | | | 89 | | |
Commercial | | | | | 202 | | | | | | 410 | | |
Construction and development | | | | | — | | | | | | — | | |
Consumer and other loans | | | | | — | | | | | | — | | |
Carrying amount | | | | $ | 6,006 | | | | | $ | 6,344 | | |
(Dollars in thousands) | | | 2022 | | | 2021 | | ||||||
Balance at January 1 | | | | | (573) | | | | | | (630) | | |
New loans purchased | | | | | — | | | | | | — | | |
Adjustment of income | | | | | — | | | | | | — | | |
Accretion | | | | | 135 | | | | | | 195 | | |
Reclassifications from nonaccretable difference | | | | | (397) | | | | | | (136) | | |
Disposals | | | | | 373 | | | | | | — | | |
Balance on June 30 | | | | $ | (462) | | | | | $ | (571) | | |
| | | Three Months Ended June 30, 2022 | | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Commercial Real Estate | | | Residential Real Estate | | | Commercial | | | Construction and land Development | | | Consumer and Other | | | Total | | ||||||||||||||||||
June 30, 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 4,735 | | | | | $ | 2,382 | | | | | $ | 5,133 | | | | | $ | 511 | | | | | $ | 794 | | | | | $ | 13,555 | | |
Provision for loan losses | | | | | 1,194 | | | | | | 584 | | | | | | 292 | | | | | | 166 | | | | | | 4 | | | | | | 2,240 | | |
Loans charged-off | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (653) | | | | | | (653) | | |
Recoveries | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total ending allowance balance | | | | $ | 5,929 | | | | | $ | 2,966 | | | | | $ | 5,425 | | | | | $ | 677 | | | | | $ | 145 | | | | | $ | 15,142 | | |
| | | Three Months Ended June 30, 2021 | | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Commercial Real Estate | | | Residential Real Estate | | | Commercial | | | Construction and land Development | | | Consumer and Other | | | Total | | ||||||||||||||||||
June 30, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 3,482 | | | | | $ | 2,188 | | | | | $ | 3,521 | | | | | $ | 404 | | | | | $ | 61 | | | | | $ | 9,656 | | |
Provision for loan losses | | | | | 803 | | | | | | 81 | | | | | | (98) | | | | | | (43) | | | | | | 19 | | | | | | 762 | | |
Loans charged-off | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Recoveries | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total ending allowance balance | | | | $ | 4,285 | | | | | $ | 2,269 | | | | | $ | 3,423 | | | | | $ | 361 | | | | | $ | 80 | | | | | $ | 10,418 | | |
| | | Six Months Ended June 30, 2022 | | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Commercial Real Estate | | | Residential Real Estate | | | Commercial | | | Construction and Land Development | | | Consumer and Other | | | Total | | ||||||||||||||||||
June 30, 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 4,471 | | | | | $ | 2,339 | | | | | $ | 4,637 | | | | | $ | 471 | | | | | $ | 786 | | | | | $ | 12,704 | | |
Provision for loan losses | | | | | 1,458 | | | | | | 627 | | | | | | 788 | | | | | | 206 | | | | | | 12 | | | | | | 3,091 | | |
Loans charged-off | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (653) | | | | | | (653) | | |
Recoveries | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total ending allowance balance | | | | $ | 5,929 | | | | | $ | 2,966 | | | | | $ | 5,425 | | | | | $ | 677 | | | | | $ | 145 | | | | | $ | 15,142 | | |
| | | Six Months Ended June 30, 2021 | | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | | | Commercial Real Estate | | | Residential Real Estate | | | Commercial | | | Construction and Land Development | | | Consumer and Other | | | Total | | ||||||||||||||||||
June 30, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | | | $ | 3,159 | | | | | $ | 2,177 | | | | | $ | 10,462 | | | | | $ | 388 | | | | | $ | 73 | | | | | $ | 16,259 | | |
Provision for loan losses | | | | | 1,126 | | | | | | 92 | | | | | | 602 | | | | | | (27) | | | | | | 7 | | | | | | 1,800 | | |
Loans charged-off | | | | | — | | | | | | — | | | | | | (7,641) | | | | | | — | | | | | | — | | | | | | (7,641) | | |
Recoveries | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total ending allowance balance | | | | $ | 4,285 | | | | | $ | 2,269 | | | | | $ | 3,423 | | | | | $ | 361 | | | | | $ | 80 | | | | | $ | 10,418 | | |
(Dollars in thousands) | | | Commercial Real Estate | | | Residential Real Estate | | | Commercial | | | Construction and Land Development | | | Consumer and Other | | | Total | | ||||||||||||||||||
June 30, 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending allowance balance attributable to loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | | | $ | — | | | | | $ | — | | | | | $ | 702 | | | | | $ | — | | | | | $ | — | | | | | $ | 702 | | |
Purchased Credit Impaired (PCI) loans | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Collectively evaluated for impairment | | | | | 5,929 | | | | | | 2,966 | | | | | | 4,723 | | | | | | 677 | | | | | | 145 | | | | | | 14,440 | | |
Total ending allowance balance | | | | $ | 5,929 | | | | | $ | 2,966 | | | | | $ | 5,425 | | | | | $ | 677 | | | | | $ | 145 | | | | | $ | 15,142 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | | | | $ | 2,258 | | | | | $ | — | | | | | $ | 1,468 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,726 | | |
Loans collectively evaluated for impairment | | | | | 1,032,229 | | | | | | 422,239 | | | | | | 394,025 | | | | | | 114,938 | | | | | | 20,076 | | | | | | 1,983,507 | | |
Total ending loans balance | | | | $ | 1,034,487 | | | | | $ | 422,239 | | | | | $ | 395,493 | | | | | $ | 114,938 | | | | | $ | 20,076 | | | | | $ | 1,987,233 | | |
December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending allowance balance attributable to loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | | | $ | — | | | | | $ | — | | | | | $ | 671 | | | | | $ | — | | | | | $ | 654 | | | | | $ | 1,325 | | |
Purchased Credit Impaired (PCI) loans | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Collectively evaluated for impairment | | | | | 4,471 | | | | | | 2,339 | | | | | | 3,966 | | | | | | 471 | | | | | | 132 | | | | | | 11,379 | | |
Total ending allowance balance | | | | $ | 4,471 | | | | | $ | 2,339 | | | | | $ | 4,637 | | | | | $ | 471 | | | | | $ | 786 | | | | | $ | 12,704 | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | | | | $ | 2,290 | | | | | $ | — | | | | | $ | 1,468 | | | | | $ | — | | | | | $ | 654 | | | | | $ | 4,412 | | |
Loans collectively evaluated for impairment | | | | | 900,364 | | | | | | 377,511 | | | | | | 382,562 | | | | | | 91,520 | | | | | | 20,795 | | | | | | 1,772,752 | | |
Total ending loans balance | | | | $ | 902,654 | | | | | $ | 377,511 | | | | | $ | 384,030 | | | | | $ | 91,520 | | | | | $ | 21,449 | | | | | $ | 1,777,164 | | |
| | | June 30, 2022 | | | December 31, 2021 | | ||||||||||||||||||
(Dollars in thousands) | | | Ending Balance | | | % of Total | | | Ending Balance | | | % of Total | | ||||||||||||
NOW accounts | | | | $ | 339,942 | | | | | | 14.3% | | | | | $ | 310,362 | | | | | | 13.1% | | |
Money market accounts | | | | | 1,026,457 | | | | | | 43.1% | | | | | | 1,055,033 | | | | | | 44.5% | | |
Brokered deposits | | | | | 15,032 | | | | | | 0.6% | | | | | | 58,365 | | | | | | 2.5% | | |
Savings accounts | | | | | 14,324 | | | | | | 0.6% | | | | | | 12,558 | | | | | | 0.5% | | |
Certificates of deposit | | | | | 208,479 | | | | | | 8.8% | | | | | | 261,067 | | | | | | 11.0% | | |
Total interest-bearing deposits | | | | | 1,604,234 | | | | | | 67.4% | | | | | | 1,697,385 | | | | | | 71.6% | | |
Noninterest-bearing deposits | | | | | 777,501 | | | | | | 32.6% | | | | | | 674,003 | | | | | | 28.4% | | |
Total deposits | | | | $ | 2,381,735 | | | | | | 100.0% | | | | | $ | 2,371,388 | | | | | | 100.0% | | |
(Dollars in thousands) | | | Three Months or Less | | | Over Three Through Six Months | | | Over Six Months Through 12 Months | | | Over 12 Months | | | Total | | |||||||||||||||
Time deposits of $250,000 or less | | | | $ | 35,131 | | | | | $ | 15,319 | | | | | $ | 17,928 | | | | | $ | 3,512 | | | | | $ | 71,890 | | |
Time deposits of more than $250,000 | | | | | 65,749 | | | | | | 27,793 | | | | | | 38,858 | | | | | | 4,189 | | | | | | 136,589 | | |
Total | | | | $ | 100,880 | | | | | $ | 43,112 | | | | | $ | 56,786 | | | | | $ | 7,701 | | | | | $ | 208,479 | | |
(Dollars in thousands) | | | Three Months or Less | | | Over Three Through Six Months | | | Over Six Months Through 12 Months | | | Over 12 Months | | | Total | | |||||||||||||||
Time deposits of $250,000 or less | | | | $ | 17,431 | | | | | $ | 26,721 | | | | | $ | 44,373 | | | | | $ | 4,631 | | | | | $ | 93,156 | | |
Time deposits of more than $250,000 | | | | | 32,058 | | | | | | 54,429 | | | | | | 83,290 | | | | | | 2,760 | | | | | | 172,537 | | |
Total | | | | $ | 49,489 | | | | | $ | 81,150 | | | | | $ | 127,663 | | | | | $ | 7,391 | | | | | $ | 265,693 | | |
(Dollars in thousands) | | | June 30, 2022 | | | December 31, 2021 | | ||||||
1 year or less | | | | $ | 200,778 | | | | | $ | 258,302 | | |
Over 1 through 2 years | | | | | 7,461 | | | | | | 6,669 | | |
Over 2 through 3 years | | | | | 240 | | | | | | 722 | | |
Over 3 through 4 years | | | | | — | | | | | | — | | |
Over 4 through 5 years | | | | | — | | | | | | — | | |
Over 5 years | | | | | — | | | | | | — | | |
Total | | | | $ | 208,479 | | | | | $ | 265,693 | | |
(Dollars in thousands) | | | June 30, 2022 | | | December 31, 2021 | | ||||||
Amount outstanding at period-end | | | | $ | — | | | | | $ | 35,000 | | |
Weighted average interest rate at period-end | | | | | —% | | | | | | 2.04% | | |
Maximum month-end balance during period | | | | $ | 35,000 | | | | | $ | 35,000 | | |
Average balance outstanding during period | | | | $ | 13,757 | | | | | $ | 36,918 | | |
Weighted average interest rate during period | | | | | 1.98% | | | | | | 2.01% | | |
| | | | | | | | | Fair Value Measurements on June 30, 2022 Using: | | |||||||||||||||
(Dollars in thousands) | | | Fair Value | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | ||||||||||||
ASSETS: | | | | | | | | | | | | | | | | | | | | | | | | | |
Securities available for sale – taxable | | | | | | | | | | | | | | | | | | | | | | | | | |
Small Business Administration loan pools | | | | $ | 34,946 | | | | | $ | — | | | | | $ | 34,946 | | | | | $ | — | | |
Mortgage-backed securities | ��� | | | | 125,137 | | | | | | — | | | | | | 125,137 | | | | | | — | | |
United States agency obligations | | | | | 2,767 | | | | | | — | | | | | | 2,767 | | | | | | — | | |
Corporate bonds | | | | | 1,504 | | | | | | — | | | | | | 1,504 | | | | | | — | | |
Securities available for sale – tax-exempt | | | | | | | | | | | | | | | | | | | | | | | | | |
Community Development District bonds | | | | | 24,432 | | | | | | — | | | | | | 24,432 | | | | | | — | | |
Municipals | | | | | 3,021 | | | | | | — | | | | | | 3,021 | | | | | | — | | |
Equity securities – mutual funds | | | | $ | 5,502 | | | | | $ | 5,502 | | | | | $ | — | | | | | $ | — | | |
Customer derivatives – interest rate swaps | | | | $ | 3,926 | | | | | $ | — | | | | | $ | 3,926 | | | | | $ | — | | |
LIABILITIES: | | | | | | | | | | | | | | | | | | | | | | | | | |
Customer derivatives – interest rate swaps | | | | $ | 3,926 | | | | | $ | — | | | | | $ | 3,926 | | | | | $ | — | | |
| | | | | | | | | Fair Value Measurements on December 31, 2021 Using: | | |||||||||||||||
(Dollars in thousands) | | | Fair Value | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | ||||||||||||
ASSETS: | | | | | | | | | | | | | | | | | | | | | | | | | |
Securities available for sale – taxable | | | | | | | | | | | | | | | | | | | | | | | | | |
Small Business Administration loan pools | | | | $ | 39,934 | | | | | $ | — | | | | | $ | 39,934 | | | | | $ | — | | |
Mortgage-backed securities | | | | | 130,103 | | | | | | — | | | | | | 130,103 | | | | | | — | | |
United States agency obligations | | | | | 3,986 | | | | | | — | | | | | | 3,986 | | | | | | — | | |
Corporate bonds | | | | | 1,513 | | | | | | — | | | | | | 1,513 | | | | | | — | | |
Securities available for sale – tax-exempt | | | | | | | | | | | | | | | | | | | | | | | | | |
Community Development District bonds | | | | | 17,674 | | | | | | — | | | | | | 17,674 | | | | | | — | | |
Municipals | | | | | 1,091 | | | | | | — | | | | | | 1,091 | | | | | | — | | |
Equity securities – mutual funds | | | | $ | 5,838 | | | | | $ | 5,838 | | | | | $ | — | | | | | $ | — | | |
Loans held for sale | | | | $ | 165 | | | | | $ | 165 | | | | | $ | — | | | | | $ | — | | |
Customer derivatives – interest rate swaps | | | | $ | 1,144 | | | | | $ | — | | | | | $ | 1,144 | | | | | $ | — | | |
LIABILITIES: | | | | | | | | | | | | | | | | | | | | | | | | | |
Customer derivatives – interest rate swaps | | | | $ | 1,144 | | | | | $ | — | | | | | $ | 1,144 | | | | | $ | — | | |
| | | | | | | | | Fair Value Measurements on June 30, 2022 Using: | | |||||||||||||||||||||
(Dollars in thousands) | | | Total at June 30, 2022 | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | | Total Gains (Losses) | | |||||||||||||||
Impaired Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial | | | | | 766 | | | | | | — | | | | | | — | | | | | | 766 | | | | | | (702) | | |
Construction and land development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer and other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 766 | | | | | $ | — | | | | | $ | — | | | | | $ | 766 | | | | | $ | (702) | | |
| | | | | | | | | Fair Value Measurements on December 31, 2021 Using: | | |||||||||||||||||||||
(Dollars in thousands) | | | Total at December 31, 2021 | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | | Total Gains (Losses) | | |||||||||||||||
Impaired Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Residential real estate | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Commercial | | | | | 797 | | | | | | — | | | | | | — | | | | | | 797 | | | | | | (671) | | |
Construction and land development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Consumer and other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (654) | | |
Total | | | | $ | 797 | | | | | $ | — | | | | | $ | — | | | | | $ | 797 | | | | | $ | (1,325) | | |
| | | June 30, 2022 | | ||||||||||||
(Dollars in thousands) | | | Carrying Amount | | | Fair Value | | | Fair Value Hierarchy | | ||||||
Financial Assets: | | | | | | | | | | | | | | | | |
Cash & due from banks, including interest bearing deposits | | | | $ | 341,036 | | | | | $ | 341,036 | | | | Level 1 | |
Federal funds sold | | | | | 27,043 | | | | | | 27,043 | | | | Level 1 | |
Securities, available for sale – taxable | | | | | 178,465 | | | | | | 164,354 | | | | Level 2 | |
Securities, available for sale – tax-exempt | | | | | 28,642 | | | | | | 27,453 | | | | Level 2 | |
Securities, held to maturity | | | | | 204 | | | | | | 197 | | | | Level 2 | |
Securities, equity | | | | | 5,502 | | | | | | 5,502 | | | | Level 1 | |
Securities, other equity | | | | | 857 | | | | | | 857 | | | | Level 1 | |
Loans, net | | | | | 1,972,091 | | | | | | 1,969,111 | | | | Level 3 | |
Bank owned life insurance | | | | | 54,134 | | | | | | 54,134 | | | | Level 2 | |
Customer derivatives – interest rate swaps | | | | | 3,926 | | | | | | 3,926 | | | | Level 2 | |
Accrued interest receivable | | | | | 5,264 | | | | | | 5,264 | | | | Level 1, 2 & 3 | |
Financial Liabilities: | | | | | | | | | | | | | | | | |
Deposits | | | | $ | 2,381,735 | | | | | $ | 2,231,981 | | | | Level 2 | |
Subordinated debt | | | | | 24,436 | | | | | | 24,436 | | | | Level 2 | |
Customer derivatives – interest rate swaps | | | | | 3,926 | | | | | | 3,926 | | | | Level 2 | |
Accrued interest payable | | | | | 564 | | | | | | 564 | | | | Level 2 | |
| | | December 31, 2021 | | ||||||||||||
(Dollars in thousands) | | | Carrying Amount | | | Fair Value | | | Fair Value Hierarchy | | ||||||
Financial Assets: | | | | | | | | | | | | | | | | |
Cash & due from banks, including interest bearing deposits | | | | $ | 583,990 | | | | | $ | 583,990 | | | | Level 1 | |
Federal funds sold | | | | | 13,477 | | | | | | 13,477 | | | | Level 1 | |
Securities, available for sale – taxable | | | | | 177,080 | | | | | | 175,536 | | | | Level 2 | |
Securities, available for sale – tax-exempt | | | | | 18,214 | | | | | | 18,765 | | | | Level 2 | |
Securities, held to maturity | | | | | 236 | | | | | | 242 | | | | Level 2 | |
Securities, equity | | | | | 5,838 | | | | | | 5,838 | | | | Level 1 | |
Securities, other equity | | | | | 800 | | | | | | 800 | | | | Level 1 | |
Loans, net | | | | | 1,764,460 | | | | | | 1,779,968 | | | | Level 3 | |
Loans held for sale | | | | | 165 | | | | | | 165 | | | | Level 1 | |
Bank owned life insurance | | | | | 38,485 | | | | | | 38,485 | | | | Level 2 | |
Customer derivatives – interest rate swaps | | | | | 1,144 | | | | | | 1,144 | | | | Level 2 | |
Accrued interest receivable | | | | | 5,272 | | | | | | 5,272 | | | | Level 1, 2 & 3 | |
Financial Liabilities: | | | | | | | | | | | | | | | | |
Deposits | | | | $ | 2,371,388 | | | | | $ | 2,372,372 | | | | Level 2 | |
Federal Home Loan Bank advances | | | | | 35,000 | | | | | | 34,274 | | | | Level 2 | |
Line of credit | | | | | 10,000 | | | | | | 10,000 | | | | Level 2 | |
Customer derivatives – interest rate swaps | | | | | 1,144 | | | | | | 1,144 | | | | Level 2 | |
(Dollars in thousands) | | | June 30, 2022 | | | December 31, 2021 | | ||||||
Available lines of credit | | | | $ | 471,356 | | | | | $ | 415,402 | | |
Unfunded loan commitments – fixed | | | | | 34,058 | | | | | | 62,126 | | |
Unfunded loan commitments – variable | | | | | 73,081 | | | | | | 46,698 | | |
Standby letters of credit | | | | | 11,974 | | | | | | 12,095 | | |
Commercial letters of credit | | | | | 3,664 | | | | | | 2,765 | | |
Total credit extension commitments | | | | $ | 594,133 | | | | | $ | 539,086 | | |
| | | Actual | | | Required for Capital Adequacy Purposes | | | Well Capitalized Prompt Corrective Action Regulations | | |||||||||||||||||||||||||||
(Dollars in thousands) | | | Amount | | | Ratio | | | Amount | | | Ratio | | | Amount | | | Ratio | | ||||||||||||||||||
June 30, 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Capital ratio | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bank | | | | $ | 245,543 | | | | | | 12.1% | | | | | $ | 162,036 | | | | | | 8.0% | | | | | $ | 202,545 | | | | | | 10.0% | | |
Company | | | | | 260,097 | | | | | | 12.8% | | | | | | 162,036 | | | | | | 8.0% | | | | | | N/A | | | | | | N/A | | |
Tier 1 Capital ratio | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bank | | | | | 229,263 | | | | | | 11.3% | | | | | | 121,527 | | | | | | 6.0% | | | | | | 162,036 | | | | | | 8.0% | | |
Company | | | | | 219,381 | | | | | | 10.8% | | | | | | 121,527 | | | | | | 6.0% | | | | | | N/A | | | | | | N/A | | |
Tier 1 Leverage ratio | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bank | | | | | 229,263 | | | | | | 8.5% | | | | | | 108,401 | | | | | | 4.0% | | | | | | 135,501 | | | | | | 5.0% | | |
Company | | | | | 219,381 | | | | | | 8.1% | | | | | | 108,401 | | | | | | 4.0% | | | | | | N/A | | | | | | N/A | | |
Common Equity Tier 1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bank | | | | | 229,263 | | | | | | 11.3% | | | | | | 91,145 | | | | | | 4.5% | | | | | | 131,654 | | | | | | 6.5% | | |
Company | | | | | 219,381 | | | | | | 10.8% | | | | | | 91,145 | | | | | | 4.5% | | | | | | N/A | | | | | | N/A | | |
December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Capital ratio | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bank | | | | $ | 222,696 | | | | | | 12.9% | | | | | $ | 138,435 | | | | | | 8.0% | | | | | $ | 173,043 | | | | | | 10.0% | | |
Company | | | | | 220,206 | | | | | | 12.7% | | | | | | 138,435 | | | | | | 8.0% | | | | | | N/A | | | | | | N/A | | |
Tier 1 Capital ratio | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bank | | | | | 208,997 | | | | | | 12.1% | | | | | | 103,826 | | | | | | 6.0% | | | | | | 138,435 | | | | | | 8.0% | | |
Company | | | | | 206,507 | | | | | | 11.9% | | | | | | 103,826 | | | | | | 6.0% | | | | | | N/A | | | | | | N/A | | |
Tier 1 Leverage ratio | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bank | | | | | 208,997 | | | | | | 7.7% | | | | | | 107,877 | | | | | | 4.0% | | | | | | 134,846 | | | | | | 5.0% | | |
Company | | | | | 206,507 | | | | | | 7.7% | | | | | | 107,877 | | | | | | 4.0% | | | | | | N/A | | | | | | N/A | | |
Common Equity Tier 1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bank | | | | | 208,997 | | | | | | 12.1% | | | | | | 77,869 | | | | | | 4.5% | | | | | | 112,478 | | | | | | 6.5% | | |
Company | | | | | 206,507 | | | | | | 11.9% | | | | | | 77,869 | | | | | | 4.5% | | | | | | N/A | | | | | | N/A | | |
| Exhibit 2.1 | | | — | | | Agreement and Plan of Merger, dated | |
| | | | | | | Certain exhibits and schedules to the Agreement and Plan of Merger have been omitted. Such exhibits and schedules are described in the Agreement and Plan of | |
| | | | | | | Merger. Seacoast Banking Corporation of Florida hereby agrees to furnish to the Securities and Exchange Commission, upon its request, any or all of such omitted exhibits and schedules. | |
| Exhibit 3.1.1 | | | — | | | | |
| Exhibit 3.1.2 | | | — | | | | |
| Exhibit 3.1.3 | | | — | | | | |
| Exhibit 3.1.4 | | | — | | | | |
| Exhibit 3.1.5 | | | — | | | | |
| Exhibit 3.1.6 | | | — | | | | |
| Exhibit 3.1.7 | | | — | | | | |
| Exhibit 3.1.8 | | | — | | | | |
| Exhibit 3.1.9 | | | — | | | | |
| Exhibit 3.1.10 | | | — | | | | |
| Exhibit 3.2 | | | — | | | | |
| Exhibit 4.1 | | | — | | | | |
| Exhibit 5.1 | | | — | | | | |
| Exhibit 8.1 | | | — | | | (to be filed by amendment). | |
| Exhibit 21.1 | | | — | | | | |
| Exhibit 23.1 | | | — | | | | |
| Exhibit 23.2 | | | — | | | | |
| Exhibit 23.3 | | | — | | | | |
| Exhibit 23.4 | | | — | | | | |
| Exhibit 24 | | | — | | | | |
| Exhibit 99.1 | | | — | | | Meeting (to be filed by amendment). | |
| Exhibit 99.2 | | | | | | ||
| Exhibit 99.3 | | | — | | | | |
| Signature | | | Title | | | Date | |
| /s/ Charles M. Shaffer Charles M. Shaffer | | | Chairman and Chief Executive Officer (principal executive officer) | | | | |
| /s/ Tracey L. Dexter Tracey L. Dexter | | | Executive Vice President and Chief Financial Officer (principal financial and accounting officer) | | | | |
| Dennis J. Arczynski | | | Director | | | | |
| Jacqueline L. Bradley | | | Director | | | | |
| H. Gilbert Culbreth, Jr. | | | Director | | | | |
| /s/ Julie H. Daum Julie H. Daum | | | Director | | | | |
| Christopher E. Fogal | | | Director | | | |
| Signature | | | Title | | | Date | |
| Maryann Goebel | | | Director | | | | |
| Dennis S. Hudson, III | | | Director | | | | |
| Robert J. Lipstein | | | Director | | | | |
| Alvaro J. Monserrat | | | Director | | | | |
| Thomas E. Rossin | | | Director | | |
|