[July 30, 2018] |
|
MVB Financial Corp. Reports Second Quarter 2018 Earnings Highlighted by 25.3% Increase in Net Income
MVB Financial Corp. (the "Company") (NASDAQ: MVBF) reported net income
of $2.8 million, or $0.25 basic and diluted earnings per share for the
three months ended June 30, 2018, an increase of 25.3% compared to $2.3
million, or $0.21 basic and $0.20 diluted earnings per share, for the
same period in 2017.
For the three months ended June 30, 2018, loans increased $57.9 million,
or 5.0%, to $1.2 billion, from March 31, 2018, which represents an
annualized increase of 20.0%. The increase in loans has been driven by
strong growth in MVB's West Virginia markets, expansion in Northern
Virginia, as well as the strategic addition of commercial lenders
throughout its markets. In addition to the increase in loan volume
during the quarter, loan yields increased 20 basis points. The Company
continues to take advantage of industry consolidation while capitalizing
on disruptions in the market to expand both the lending and deposit
teams. These teams have extensive experience and relationships in MVB's
selected markets.
MANAGEMENT OVERVIEW "When you look at the five phases of the
banking industry's most important measures, MVB is firing on all
cylinders," said Larry F. Mazza, CEO and President, MVB Financial. "A
wise banker once told me, 'The trend is your friend.' The five trends
from June 2017 to June 2018 are loan growth of 10%; NIB deposit growth
of 35%; service charge income growth is 32%; capital is up 13%; and
asset quality is excellent. When you look at all five phases, we expect
the positive trend for MVB to continue throughout 2018."
Mazza continued, "For the first half of the year, we saw an increase in
borrowing to fund loan growth. In the second half of year, we are
targeting deposit growth driven by our fintech and specialty deposit
strategies.
"In the fintech world we see four ways to compete. One is client facing;
we provide convenience through technology for our clients. The second is
the efficiency vertical where we improve our clients' banking experience
in areas such as loan processing or check processing, all in a more
efficient way developed by financial technology. The third is to invest
in fintech. An example is our investment in BillGO, a payment processor
based in Fort Collins, Colo. Because of our BillGO partnership, MVB was
recently a runner up in Bank Director's 2018 Best of FinXTech Awards.
Partnerships such as this also provide an important source of new
business referrals. Fourth and probably most important to us is being
'The Bank of Fintech.' We want to be a 'one-stop payment shop' building
out our technical expertise in the payment stack."
SECOND QUARTER 2018 HIGHLIGHTS
-
Loans of $1.2 billion as of June 30, 2018, increased $57.9 million, or
5.0%, from March 31, 2018, and increased $112.7 million, or 10.2%,
from June 30, 2017.
-
Assets of $1.7 billion as of June 30, 2018, increased $103.9 million,
or 6.6%, from March 31, 2018, and increased $178.4 million, or 11.8%,
from June 30, 2017.
-
Deposits of $1.2 billion as of June 30, 2018, increased $42.0 million,
or 3.6%, from March 31, 2018, and increased $96.3 million, or 8.8%
from June 30, 2017. Noninterest-bearing deposits of $164.0 million
increased $21.2 million, or 14.8%, from March 31, 2018, and increased
$42.6 million, or 35.1%, from June 30, 2017.
-
MVB reported improvements in return on average assets, return on
average equity, net interest margin, and efficiency ratio.
-
Net interest income of $12.7 million for the quarter ended June 30,
2018, increased $1.2 million, or 10.4%, from the quarter ended
March 31, 2018, and increased $1.8 million, or 16.2% from the quarter
ended June 30, 2017.
-
Noninterest income of $10.8 million for the quarter ended June 30,
2018, increased $1.8 million, or 19.4%, from the quarter ended
March 31, 2018, and decreased $772 thousand, or 6.7%, from the quarter
ended June 30, 2017.
-
$12.7 million of subordinated debt converted to common stock, which
caused the issuance of 795,500 new shares and will provide an annual
interest expense savings of $905 thousand.
LOANS Loans totaled $1.2 billion as of June 30, 2018, an
increase of $57.9 million, or 5.0%, from March 31, 2018, and an increase
of $112.7 million, or 10.2%, from June 30, 2017. The growth in loans is
primarily attributable to organic growth and the addition of commercial
lenders within the Company's primary lending areas. The yield on loans
was 4.88% as of the quarter ended June 30, 2018, an increase of 20 basis
points from the quarter ended March 31, 2018, and an increase of 38
basis points from the quarter ended June 30, 2017. The increase in
yields is driven both by Fed rate increases and a commercial focus on
increasing loan yields. In connection with the Company's core conversion
in 2017, the Company implemented a CRM system that has provided better
insight on loan pricing.
DEPOSITS Deposits totaled $1.2 billion as of June 30, 2018,
and increased $42.0 million, or 3.6%, from March 31, 2018, while
increasing $96.3 million, or 8.8%, from June 30, 2017.
Noninterest-bearing deposits totaled $164.0 million as of June 30, 2018,
or 13.7%, of the total deposit base, an increase of $21.2 million, or
14.8%, from March 31, 2018, and an increase of $42.6 million, or 35.1%,
from June 30, 2017. Noninterest-bearing deposits remain a core funding
source for the Company. Management will continue to concentrate on
balancing deposit growth with adequate net interest margin to meet
strategic goals.
NET INTEREST INCOME Net interest income for the quarter
ended June 30, 2018, was $12.7 million, an increase of $1.2 million, or
10.4%, from the quarter ended March 31, 2018, and an increase of $1.8
million, or 16.2% from the quarter ended June 30, 2017. Net interest
margin for the quarter ended June 30, 2018 was 3.38%, an increase of 9
basis points versus the quarter ended March 31, 2018, and an increase of
7 basis points versus the quarter ended June 30, 2017.
Interest expense increased 19.5% during the quarter ended June 30, 2018,
compared to the quarter ended March 31, 2018, due to an increase of 14
basis points in the cost of interest-bearing liabilities, and increased
46.9% compared to the quarter ended June 30, 2017, due to an increase of
31 basis points in the cost of interest-bearing liabilities. The
increase in the cost of interest-bearing liabilities compared to the
quarter ended June 30, 2017, was the result of an $85.3 million increase
in the average balances of FHLB and other borrowings, as well as a $1.2
million increase in the related interest expense.
In June 2018, subordinated debt in the amount of $12.7 million was
converted into 795,500 shares of common stock. As a result of the
conversions, the Company will save $905 thousand annually in interest
expense.
ASSET QUALITY Provision for loan loss was $605 thousand for
the quarter ended June 30, 2018, an $82 thousand increase from the
quarter ended June 30, 2017, due to a 10.2% increase in loans. The
increase in loan loss provision is attributable to increased loan volume
for the quarter ended June 30, 2018, compared to the quarter ended
June 30, 2017, as well as lower historical loss rates for the period
used to determine the allowance. Nonperforming loans increased $4.3
million, to 0.78%, of total loans as of June 30, 2018, compared to 0.79%
of total loans as of March 31, 2018, and compared to 0.46% of total
loans as of June 30, 2017. In addition, net charge-offs for the quarter
ended June 30, 2018, decreased $126 thousand compared to the quarter
ended June 30, 2017, resulting in an annualized net loan charge-offs to
total loans ratio of 0.01% as of June 30, 2018.
NONINTEREST INCOME Noninterest income totaled $10.8 million
for the quarter ended June 30, 2018, an increase of $1.8 million, or
19.4%, from the quarter ended March 31, 2018, and a decrease of $772
thousand, or 6.7%, from the quarter ended June 30, 2017.
The $1.8 million increase in noninterest income from the quarter ended
March 31, 2018, was due to an increase of $2.5 million in mortgage fee
income. The increase was partially offset by a decrease of $413 thousand
in commercial swap fee income, a decrease of $326 thousand in gain on
sale of securities and a decrease of $212 thousand in gain on sale of
portfolio loans. The increase in mortgage fee income was primarily the
result of a $98.2 million increase in sold loan volume.
The $772 thousand decrease in noninterest income from the quarter ended
June 30, 2017, was primarily due to a $384 thousand decrease in gain on
derivatives, along with decreases of $270 thousand in commercial swap
fees, $203 thousand in gain on sale of portfolio loans and $167 thousand
in gain on sale of securities, all of which were partially offset by an
increase of $111 thousand in mortgage fee income and an increase of $116
thousand in service charges on deposit accounts. The decrease in gain on
derivatives was primarily the result of a decrease of $1.4 million in
the valuation of open trades used to hedge the derivative asset.
NONINTEREST EXPENSE Noninterest expense totaled $19.2
million for the quarter ended June 30, 2018, an increase of $2.5
million, or 15.0%, from the quarter ended March 31, 2018, and an
increase of $746 thousand, or 4.0%, from the quarter ended June 30, 2017.
The $2.5 million increase in noninterest expense from the quarter ended
March 31, 2018, was primarily due to an increase of $2.0 million in
salaries and employee benefits expense, a $127 thousand increase in data
processing and communications and a $100 thousand increase in mortgage
processing expense. The increase in salaries and employee benefits
expense was largely driven by the addition of senior management,
lenders, a treasury team and the opening of two new branches in 2017.
The $746 thousand increase in noninterest expense from the quarter ended
June 30, 2017, was primarily due to an increase of $696 thousand in
salaries and employee benefits expense.
DIVIDEND As previously announced on May 16, 2018, the
Company declared a quarterly cash dividend of $0.025 per share to
shareholders of record at the close of business on June 1, 2018, payable
June 15, 2018. This was the second quarterly dividend for 2018 and was
equal to the March 2018 payout of $0.025 per share.
About MVB Financial Corp.
MVB Financial Corp. ("MVB Financial" or "MVB"), the holding company of
MVB Bank, is publicly traded on The Nasdaq Capital Market® under the
ticker "MVBF."
MVB is a financial holding company headquartered in Fairmont, W.Va.
Through its subsidiary, MVB Bank, Inc., and the bank's subsidiary, MVB
Mortgage, the company provides financial services to individuals and
corporate clients in the Mid-Atlantic region.
Nasdaq is a leading global provider of trading, clearing, exchange
technology, listing, information and public company services.
For more information about MVB, please visit ir.mvbbanking.com.
Forward-looking Statements
MVB Financial Corp. has made forward-looking statements, within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended,
in this Earnings Release. These forward-looking statements are based on
current expectations about the future and subject to risks and
uncertainties. Forward-looking statements include information concerning
possible or assumed future results of operations of the Company and its
subsidiaries. When words such as "believes," "expects," "anticipates,"
"may," or similar expressions occur in this Earnings Release, the
Company is making forward-looking statements. Note that many factors
could affect the future financial results of the Company and its
subsidiaries, both individually and collectively, and could cause those
results to differ materially from those expressed in the forward-looking
statements contained in this Earnings Release. Those factors include,
but are not limited to: credit risk, changes in market interest rates,
inability to achieve merger-related synergies, competition, economic
downturn or recession and government regulation and
supervision. Additional factors that may cause our actual results to
differ materially from those described in our forward-looking statements
can be found in the Company's Annual Report on Form 10-K for the year
ended December 31, 2017, as well as its other filings with the SEC,
which are available on the SEC website at www.sec.gov.
Except as required by law, the Company undertakes no obligation to
update or revise any forward-looking statements.
Accounting standards require the consideration of subsequent events
occurring after the balance sheet date for matters that require
adjustment to, or disclosure in, the consolidated financial statements.
The review period for subsequent events extends up to and including the
filing date of a public company's financial statements when filed with
the Securities and Exchange Commission. Accordingly, the consolidated
financial information in this announcement is subject to change.
Questions or comments concerning this Earnings Release should be
directed to:
MVB Financial Corp.
Donald T. Robinson, Executive Vice President and CFO (304) 598-3500 [email protected]
|
MVB Financial Corp.
Financial Highlights
|
|
Condensed Consolidated Statements of Income
(Unaudited) (Dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
Quarterly
|
|
|
Year-to-Date
|
|
|
|
2018
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
Six Months Ended June 30, 2018
|
|
|
Six Months Ended June 30, 2017
|
|
|
|
Second Quarter
|
|
|
First Quarter
|
|
|
Fourth Quarter
|
|
|
Third Quarter
|
|
|
Second Quarter
|
|
|
|
|
Interest income
|
|
|
$
|
16,944
|
|
|
|
$
|
15,054
|
|
|
|
$
|
15,086
|
|
|
|
$
|
14,630
|
|
|
|
$
|
13,814
|
|
|
|
$
|
31,998
|
|
|
|
$
|
26,882
|
Interest expense
|
|
|
4,289
|
|
|
|
3,589
|
|
|
|
3,403
|
|
|
|
3,216
|
|
|
|
2,920
|
|
|
|
7,878
|
|
|
|
5,682
|
Net interest income
|
|
|
12,655
|
|
|
|
11,465
|
|
|
|
11,683
|
|
|
|
11,414
|
|
|
|
10,894
|
|
|
|
24,120
|
|
|
|
21,200
|
Provision for loan losses
|
|
|
605
|
|
|
|
474
|
|
|
|
1,036
|
|
|
|
96
|
|
|
|
523
|
|
|
|
1,079
|
|
|
|
1,041
|
Noninterest income
|
|
|
10,795
|
|
|
|
9,039
|
|
|
|
10,157
|
|
|
|
10,158
|
|
|
|
11,567
|
|
|
|
19,834
|
|
|
|
20,391
|
Noninterest expense
|
|
|
19,249
|
|
|
|
16,739
|
|
|
|
17,714
|
|
|
|
17,966
|
|
|
|
18,503
|
|
|
|
35,988
|
|
|
|
34,820
|
Income before income taxes
|
|
|
3,596
|
|
|
|
3,291
|
|
|
|
3,090
|
|
|
|
3,510
|
|
|
|
3,435
|
|
|
|
6,887
|
|
|
|
5,730
|
Income tax expense
|
|
|
765
|
|
|
|
697
|
|
|
|
1,667
|
|
|
|
1,192
|
|
|
|
1,175
|
|
|
|
1,462
|
|
|
|
1,896
|
Net income
|
|
|
$
|
2,831
|
|
|
|
$
|
2,594
|
|
|
|
$
|
1,423
|
|
|
|
$
|
2,318
|
|
|
|
$
|
2,260
|
|
|
|
$
|
5,425
|
|
|
|
$
|
3,834
|
Preferred dividends
|
|
|
122
|
|
|
|
121
|
|
|
|
124
|
|
|
|
123
|
|
|
|
122
|
|
|
|
243
|
|
|
|
251
|
Net income available to common shareholders
|
|
|
$
|
2,709
|
|
|
|
$
|
2,473
|
|
|
|
$
|
1,299
|
|
|
|
$
|
2,195
|
|
|
|
$
|
2,138
|
|
|
|
$
|
5,182
|
|
|
|
$
|
3,583
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - basic
|
|
|
$
|
0.25
|
|
|
|
$
|
0.24
|
|
|
|
$
|
0.12
|
|
|
|
$
|
0.21
|
|
|
|
$
|
0.21
|
|
|
|
$
|
0.49
|
|
|
|
$
|
0.35
|
Earnings per share - diluted
|
|
|
$
|
0.25
|
|
|
|
$
|
0.23
|
|
|
|
$
|
0.12
|
|
|
|
$
|
0.21
|
|
|
|
$
|
0.20
|
|
|
|
$
|
0.47
|
|
|
|
$
|
0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets
(Unaudited) (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2018
|
|
|
March 31, 2018
|
|
|
December 31, 2017
|
|
|
June 30, 2017
|
Cash and cash equivalents
|
|
|
|
|
|
|
$
|
23,950
|
|
|
|
$
|
23,630
|
|
|
|
$
|
20,305
|
|
|
|
$
|
17,805
|
|
Certificates of deposit with other banks
|
|
|
|
|
|
|
14,778
|
|
|
|
14,778
|
|
|
|
14,778
|
|
|
|
14,527
|
|
Investment securities
|
|
|
|
|
|
|
229,054
|
|
|
|
233,483
|
|
|
|
231,507
|
|
|
|
175,110
|
|
Loans held for sale
|
|
|
|
|
|
|
98,799
|
|
|
|
51,280
|
|
|
|
66,794
|
|
|
|
107,825
|
|
Loans
|
|
|
|
|
|
|
1,215,072
|
|
|
|
1,157,173
|
|
|
|
1,105,941
|
|
|
|
1,102,378
|
|
Allowance for loan losses
|
|
|
|
|
|
|
(10,651
|
)
|
|
|
(10,067
|
)
|
|
|
(9,878
|
)
|
|
|
(9,748
|
)
|
Net loans
|
|
|
|
|
|
|
1,204,421
|
|
|
|
1,147,106
|
|
|
|
1,096,063
|
|
|
|
1,092,630
|
|
Premises and equipment
|
|
|
|
|
|
|
26,418
|
|
|
|
26,477
|
|
|
|
26,686
|
|
|
|
27,462
|
|
Goodwill
|
|
|
|
|
|
|
18,480
|
|
|
|
18,480
|
|
|
|
18,480
|
|
|
|
18,480
|
|
Other assets
|
|
|
|
|
|
|
69,519
|
|
|
|
66,284
|
|
|
|
59,689
|
|
|
|
53,214
|
|
Total assets
|
|
|
|
|
|
|
$
|
1,685,419
|
|
|
|
$
|
1,581,518
|
|
|
|
$
|
1,534,302
|
|
|
|
$
|
1,507,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
$
|
1,195,868
|
|
|
|
$
|
1,153,907
|
|
|
|
$
|
1,159,580
|
|
|
|
$
|
1,099,608
|
|
Borrowed funds
|
|
|
|
|
|
|
266,830
|
|
|
|
207,370
|
|
|
|
152,169
|
|
|
|
189,384
|
|
Other liabilities
|
|
|
|
|
|
|
56,926
|
|
|
|
69,820
|
|
|
|
72,361
|
|
|
|
71,227
|
|
Shareholders' equity
|
|
|
|
|
|
|
165,795
|
|
|
|
150,421
|
|
|
|
150,192
|
|
|
|
146,834
|
|
Total liabilities and shareholders' equity
|
|
|
|
|
|
|
$
|
1,685,419
|
|
|
|
$
|
1,581,518
|
|
|
|
$
|
1,534,302
|
|
|
|
$
|
1,507,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reportable Segments
(Unaudited)
|
|
Three Months Ended June 30, 2018
|
|
|
Commercial & Retail Banking
|
|
|
Mortgage Banking
|
|
|
Financial Holding Company
|
|
|
Intercompany Eliminations
|
|
|
Consolidated
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
$
|
15,426
|
|
|
|
$
|
1,772
|
|
|
|
$
|
1
|
|
|
|
$
|
(255
|
)
|
|
|
$
|
16,944
|
Mortgage fee income
|
|
|
154
|
|
|
|
9,152
|
|
|
|
-
|
|
|
|
(243
|
)
|
|
|
9,063
|
Other income
|
|
|
1,068
|
|
|
|
706
|
|
|
|
1,489
|
|
|
|
(1,531
|
)
|
|
|
1,732
|
Total operating income
|
|
|
16,648
|
|
|
|
11,630
|
|
|
|
1,490
|
|
|
|
(2,029
|
)
|
|
|
27,739
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
3,164
|
|
|
|
1,081
|
|
|
|
542
|
|
|
|
(498
|
)
|
|
|
4,289
|
Salaries and employee benefits
|
|
|
3,884
|
|
|
|
6,826
|
|
|
|
1,784
|
|
|
|
-
|
|
|
|
12,494
|
Provision for loan losses
|
|
|
625
|
|
|
|
(20
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
605
|
Other expense
|
|
|
4,968
|
|
|
|
2,296
|
|
|
|
1,022
|
|
|
|
(1,531
|
)
|
|
|
6,755
|
Total operating expenses
|
|
|
12,641
|
|
|
|
10,183
|
|
|
|
3,348
|
|
|
|
(2,029
|
)
|
|
|
24,143
|
Income (loss) before income taxes
|
|
|
4,007
|
|
|
|
1,447
|
|
|
|
(1,858
|
)
|
|
|
-
|
|
|
|
3,596
|
Income tax expense (benefit)
|
|
|
832
|
|
|
|
373
|
|
|
|
(440
|
)
|
|
|
-
|
|
|
|
765
|
Net income (loss)
|
|
|
$
|
3,175
|
|
|
|
$
|
1,074
|
|
|
|
$
|
(1,418
|
)
|
|
|
$
|
-
|
|
|
|
$
|
2,831
|
Preferred stock dividends
|
|
|
-
|
|
|
|
-
|
|
|
|
122
|
|
|
|
-
|
|
|
|
122
|
Net income (loss) available to common shareholders
|
|
|
$
|
3,175
|
|
|
|
$
|
1,074
|
|
|
|
$
|
(1,540
|
)
|
|
|
$
|
-
|
|
|
|
$
|
2,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2018
|
|
|
Commercial & Retail Banking
|
|
|
Mortgage Banking
|
|
|
Financial Holding Company
|
|
|
Intercompany Eliminations
|
|
|
Consolidated
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
$
|
13,838
|
|
|
|
$
|
1,335
|
|
|
|
$
|
1
|
|
|
|
$
|
(120
|
)
|
|
|
$
|
15,054
|
Mortgage fee income
|
|
|
140
|
|
|
|
6,673
|
|
|
|
-
|
|
|
|
(250
|
)
|
|
|
6,563
|
Other income
|
|
|
1,780
|
|
|
|
517
|
|
|
|
1,553
|
|
|
|
(1,374
|
)
|
|
|
2,476
|
Total operating income
|
|
|
15,758
|
|
|
|
8,525
|
|
|
|
1,554
|
|
|
|
(1,744
|
)
|
|
|
24,093
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
2,674
|
|
|
|
727
|
|
|
|
558
|
|
|
|
(370
|
)
|
|
|
3,589
|
Salaries and employee benefits
|
|
|
3,569
|
|
|
|
5,416
|
|
|
|
1,488
|
|
|
|
-
|
|
|
|
10,473
|
Provision for loan losses
|
|
|
417
|
|
|
|
57
|
|
|
|
-
|
|
|
|
-
|
|
|
|
474
|
Other expense
|
|
|
4,559
|
|
|
|
2,122
|
|
|
|
959
|
|
|
|
(1,374
|
)
|
|
|
6,266
|
Total operating expenses
|
|
|
11,219
|
|
|
|
8,322
|
|
|
|
3,005
|
|
|
|
(1,744
|
)
|
|
|
20,802
|
Income (loss) before income taxes
|
|
|
4,539
|
|
|
|
203
|
|
|
|
(1,451
|
)
|
|
|
-
|
|
|
|
3,291
|
Income tax expense (benefit)
|
|
|
978
|
|
|
|
53
|
|
|
|
(334
|
)
|
|
|
-
|
|
|
|
697
|
Net income (loss)
|
|
|
$
|
3,561
|
|
|
|
$
|
150
|
|
|
|
$
|
(1,117
|
)
|
|
|
$
|
-
|
|
|
|
$
|
2,594
|
Preferred stock dividends
|
|
|
-
|
|
|
|
-
|
|
|
|
121
|
|
|
|
-
|
|
|
|
121
|
Net income (loss) available to common shareholders
|
|
|
$
|
3,561
|
|
|
|
$
|
150
|
|
|
|
$
|
(1,238
|
)
|
|
|
$
|
-
|
|
|
|
$
|
2,473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2017
|
|
|
Commercial & Retail Banking
|
|
|
Mortgage Banking
|
|
|
Financial Holding Company
|
|
|
Intercompany Eliminations
|
|
|
Consolidated
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
$
|
12,907
|
|
|
|
$
|
1,073
|
|
|
|
$
|
1
|
|
|
|
$
|
(167
|
)
|
|
|
$
|
13,814
|
|
Mortgage fee income
|
|
|
188
|
|
|
|
8,937
|
|
|
|
-
|
|
|
|
(173
|
)
|
|
|
8,952
|
|
Other income
|
|
|
1,529
|
|
|
|
1,137
|
|
|
|
1,307
|
|
|
|
(1,358
|
)
|
|
|
2,615
|
|
Total operating income
|
|
|
14,624
|
|
|
|
11,147
|
|
|
|
1,308
|
|
|
|
(1,698
|
)
|
|
|
25,381
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
2,168
|
|
|
|
534
|
|
|
|
558
|
|
|
|
(340
|
)
|
|
|
2,920
|
|
Salaries and employee benefits
|
|
|
3,267
|
|
|
|
7,147
|
|
|
|
1,384
|
|
|
|
-
|
|
|
|
11,798
|
|
Provision for loan losses
|
|
|
467
|
|
|
|
56
|
|
|
|
-
|
|
|
|
-
|
|
|
|
523
|
|
Other expense
|
|
|
5,065
|
|
|
|
2,044
|
|
|
|
954
|
|
|
|
(1,358
|
)
|
|
|
6,705
|
|
Total operating expenses
|
|
|
10,967
|
|
|
|
9,781
|
|
|
|
2,896
|
|
|
|
(1,698
|
)
|
|
|
21,946
|
|
Income (loss) before income taxes
|
|
|
3,657
|
|
|
|
1,366
|
|
|
|
(1,588
|
)
|
|
|
-
|
|
|
|
3,435
|
|
Income tax expense (benefit)
|
|
|
1,165
|
|
|
|
540
|
|
|
|
(530
|
)
|
|
|
-
|
|
|
|
1,175
|
|
Net income (loss)
|
|
|
$
|
2,492
|
|
|
|
$
|
826
|
|
|
|
$
|
(1,058
|
)
|
|
|
$
|
-
|
|
|
|
$
|
2,260
|
|
Preferred stock dividends
|
|
|
-
|
|
|
|
-
|
|
|
|
122
|
|
|
|
-
|
|
|
|
122
|
|
Net income (loss) available to common shareholders
|
|
|
$
|
2,492
|
|
|
|
$
|
826
|
|
|
|
$
|
(1,180
|
)
|
|
|
$
|
-
|
|
|
|
$
|
2,138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2018
|
|
|
Commercial & Retail Banking
|
|
|
Mortgage Banking
|
|
|
Financial Holding Company
|
|
|
Intercompany Eliminations
|
|
|
Consolidated
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
$
|
29,265
|
|
|
|
$
|
3,107
|
|
|
|
$
|
2
|
|
|
|
$
|
(376
|
)
|
|
|
$
|
31,998
|
|
Mortgage fee income
|
|
|
292
|
|
|
|
15,825
|
|
|
|
-
|
|
|
|
(491
|
)
|
|
|
15,626
|
|
Other income
|
|
|
2,848
|
|
|
|
1,223
|
|
|
|
3,043
|
|
|
|
(2,906
|
)
|
|
|
4,208
|
|
Total operating income
|
|
|
32,405
|
|
|
|
20,155
|
|
|
|
3,045
|
|
|
|
(3,773
|
)
|
|
|
51,832
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
5,838
|
|
|
|
1,808
|
|
|
|
1,100
|
|
|
|
(868
|
)
|
|
|
7,878
|
|
Salaries and employee benefits
|
|
|
7,453
|
|
|
|
12,242
|
|
|
|
3,272
|
|
|
|
-
|
|
|
|
22,967
|
|
Provision for loan losses
|
|
|
1,042
|
|
|
|
37
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,079
|
|
Other expense
|
|
|
9,527
|
|
|
|
4,418
|
|
|
|
1,981
|
|
|
|
(2,905
|
)
|
|
|
13,021
|
|
Total operating expenses
|
|
|
23,860
|
|
|
|
18,505
|
|
|
|
6,353
|
|
|
|
(3,773
|
)
|
|
|
44,945
|
|
Income (loss) before income taxes
|
|
|
8,545
|
|
|
|
1,650
|
|
|
|
(3,308
|
)
|
|
|
-
|
|
|
|
6,887
|
|
Income tax expense (benefit)
|
|
|
1,810
|
|
|
|
426
|
|
|
|
(774
|
)
|
|
|
-
|
|
|
|
1,462
|
|
Net income (loss)
|
|
|
$
|
6,735
|
|
|
|
$
|
1,224
|
|
|
|
$
|
(2,534
|
)
|
|
|
$
|
-
|
|
|
|
$
|
5,425
|
|
Preferred stock dividends
|
|
|
-
|
|
|
|
-
|
|
|
|
243
|
|
|
|
-
|
|
|
|
243
|
|
Net income (loss) available to common shareholders
|
|
|
$
|
6,735
|
|
|
|
$
|
1,224
|
|
|
|
$
|
(2,777
|
)
|
|
|
$
|
-
|
|
|
|
$
|
5,182
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2017
|
|
|
Commercial & Retail Banking
|
|
|
Mortgage Banking
|
|
|
Financial Holding Company
|
|
|
Intercompany Eliminations
|
|
|
Consolidated
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
$
|
25,218
|
|
|
|
$
|
1,854
|
|
|
|
$
|
2
|
|
|
|
$
|
(192
|
)
|
|
|
$
|
26,882
|
Mortgage fee income
|
|
|
373
|
|
|
|
18,574
|
|
|
|
-
|
|
|
|
(361
|
)
|
|
|
18,586
|
Other income
|
|
|
2,609
|
|
|
|
(694
|
)
|
|
|
2,518
|
|
|
|
(2,628
|
)
|
|
|
1,805
|
Total operating income
|
|
|
28,200
|
|
|
|
19,734
|
|
|
|
2,520
|
|
|
|
(3,181
|
)
|
|
|
47,273
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
4,288
|
|
|
|
838
|
|
|
|
1,109
|
|
|
|
(553
|
)
|
|
|
5,682
|
Salaries and employee benefits
|
|
|
5,924
|
|
|
|
13,101
|
|
|
|
2,735
|
|
|
|
-
|
|
|
|
21,760
|
Provision for loan losses
|
|
|
967
|
|
|
|
74
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,041
|
Other expense
|
|
|
9,716
|
|
|
|
4,143
|
|
|
|
1,829
|
|
|
|
(2,628
|
)
|
|
|
13,060
|
Total operating expenses
|
|
|
20,895
|
|
|
|
18,156
|
|
|
|
5,673
|
|
|
|
(3,181
|
)
|
|
|
41,543
|
Income (loss) before income taxes
|
|
|
7,305
|
|
|
|
1,578
|
|
|
|
(3,153
|
)
|
|
|
-
|
|
|
|
5,730
|
Income tax expense (benefit)
|
|
|
2,326
|
|
|
|
636
|
|
|
|
(1,066
|
)
|
|
|
-
|
|
|
|
1,896
|
Net income (loss)
|
|
|
$
|
4,979
|
|
|
|
$
|
942
|
|
|
|
$
|
(2,087
|
)
|
|
|
$
|
-
|
|
|
|
$
|
3,834
|
Preferred stock dividends
|
|
|
-
|
|
|
|
-
|
|
|
|
251
|
|
|
|
-
|
|
|
|
251
|
Net income (loss) available to common shareholders
|
|
|
$
|
4,979
|
|
|
|
$
|
942
|
|
|
|
$
|
(2,338
|
)
|
|
|
$
|
-
|
|
|
|
$
|
3,583
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances and Interest Rates
(Unaudited) (Dollars in thousands)
|
|
|
|
|
Three Months Ended June 30, 2018
|
|
|
Three Months Ended March 31, 2018
|
|
|
Three Months Ended June 30, 2017
|
|
|
|
Average Balance
|
|
|
Interest Income/ Expense
|
|
|
Yield/ Cost
|
|
|
Average Balance
|
|
|
Interest Income/ Expense
|
|
|
Yield/ Cost
|
|
|
Average Balance
|
|
|
Interest Income/ Expense
|
|
|
Yield/ Cost
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits in banks
|
|
|
$
|
3,473
|
|
|
|
$
|
17
|
|
|
|
1.96
|
%
|
|
|
$
|
3,883
|
|
|
|
$
|
18
|
|
|
|
1.83
|
%
|
|
|
$
|
3,277
|
|
|
|
$
|
12
|
|
|
|
1.47
|
%
|
CDs with other banks
|
|
|
14,778
|
|
|
|
74
|
|
|
|
2.02
|
|
|
|
14,778
|
|
|
|
72
|
|
|
|
1.97
|
|
|
|
14,456
|
|
|
|
70
|
|
|
|
1.94
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
151,224
|
|
|
|
891
|
|
|
|
2.36
|
|
|
|
154,430
|
|
|
|
895
|
|
|
|
2.35
|
|
|
|
119,553
|
|
|
|
645
|
|
|
|
2.16
|
|
Tax-exempt
|
|
|
81,164
|
|
|
|
717
|
|
|
|
3.54
|
|
|
|
75,556
|
|
|
|
655
|
|
|
|
3.51
|
|
|
|
53,733
|
|
|
|
418
|
|
|
|
3.12
|
|
Loans and loans held for sale: 1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
831,118
|
|
|
|
10,318
|
|
|
|
4.98
|
|
|
|
775,764
|
|
|
|
8,943
|
|
|
|
4.68
|
|
|
|
725,707
|
|
|
|
8,170
|
|
|
|
4.52
|
|
Tax exempt
|
|
|
14,260
|
|
|
|
123
|
|
|
|
3.46
|
|
|
|
14,464
|
|
|
|
123
|
|
|
|
3.46
|
|
|
|
15,263
|
|
|
|
131
|
|
|
|
3.44
|
|
Real estate
|
|
|
394,814
|
|
|
|
4,656
|
|
|
|
4.73
|
|
|
|
360,744
|
|
|
|
4,190
|
|
|
|
4.71
|
|
|
|
373,353
|
|
|
|
4,201
|
|
|
|
4.51
|
|
Consumer
|
|
|
11,850
|
|
|
|
148
|
|
|
|
5.00
|
|
|
|
12,517
|
|
|
|
158
|
|
|
|
5.11
|
|
|
|
13,817
|
|
|
|
167
|
|
|
|
4.85
|
|
Total loans
|
|
|
1,252,042
|
|
|
|
15,245
|
|
|
|
4.88
|
|
|
|
1,163,489
|
|
|
|
13,414
|
|
|
|
4.68
|
|
|
|
1,128,140
|
|
|
|
12,669
|
|
|
|
4.50
|
|
Total earning assets
|
|
|
1,502,681
|
|
|
|
16,944
|
|
|
|
4.52
|
|
|
|
1,412,136
|
|
|
|
15,054
|
|
|
|
4.32
|
|
|
|
1,319,159
|
|
|
|
13,814
|
|
|
|
4.20
|
|
Less: Allowance for loan losses
|
|
|
(10,132
|
)
|
|
|
|
|
|
|
|
|
(9,987
|
)
|
|
|
|
|
|
|
|
|
(9,734
|
)
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
16,792
|
|
|
|
|
|
|
|
|
|
15,966
|
|
|
|
|
|
|
|
|
|
15,407
|
|
|
|
|
|
|
|
Other assets
|
|
|
107,421
|
|
|
|
|
|
|
|
|
|
102,645
|
|
|
|
|
|
|
|
|
|
100,205
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
1,616,762
|
|
|
|
|
|
|
|
|
|
$
|
1,520,760
|
|
|
|
|
|
|
|
|
|
$
|
1,425,037
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW
|
|
|
$
|
459,784
|
|
|
|
$
|
846
|
|
|
|
0.74
|
|
|
|
$
|
443,784
|
|
|
|
$
|
762
|
|
|
|
0.70
|
|
|
|
$
|
432,729
|
|
|
|
$
|
603
|
|
|
|
0.56
|
|
Money market checking
|
|
|
229,763
|
|
|
|
484
|
|
|
|
0.85
|
|
|
|
241,472
|
|
|
|
443
|
|
|
|
0.74
|
|
|
|
237,173
|
|
|
|
432
|
|
|
|
0.73
|
|
Savings
|
|
|
46,478
|
|
|
|
7
|
|
|
|
0.06
|
|
|
|
46,544
|
|
|
|
20
|
|
|
|
0.17
|
|
|
|
48,590
|
|
|
|
20
|
|
|
|
0.17
|
|
IRAs
|
|
|
17,997
|
|
|
|
69
|
|
|
|
1.54
|
|
|
|
17,691
|
|
|
|
62
|
|
|
|
1.43
|
|
|
|
16,282
|
|
|
|
53
|
|
|
|
1.31
|
|
CDs
|
|
|
275,004
|
|
|
|
1,124
|
|
|
|
1.64
|
|
|
|
269,286
|
|
|
|
1,011
|
|
|
|
1.52
|
|
|
|
256,887
|
|
|
|
855
|
|
|
|
1.33
|
|
Repurchase agreements and federal funds sold
|
|
|
20,118
|
|
|
|
20
|
|
|
|
0.39
|
|
|
|
20,605
|
|
|
|
19
|
|
|
|
0.37
|
|
|
|
21,268
|
|
|
|
19
|
|
|
|
0.36
|
|
FHLB and other borrowings
|
|
|
226,487
|
|
|
|
1,197
|
|
|
|
2.12
|
|
|
|
160,205
|
|
|
|
714
|
|
|
|
1.81
|
|
|
|
112,385
|
|
|
|
380
|
|
|
|
1.36
|
|
Subordinated debt
|
|
|
32,015
|
|
|
|
542
|
|
|
|
6.79
|
|
|
|
33,524
|
|
|
|
558
|
|
|
|
6.75
|
|
|
|
33,524
|
|
|
|
558
|
|
|
|
6.68
|
|
Total interest-bearing liabilities
|
|
|
1,307,646
|
|
|
|
4,289
|
|
|
|
1.32
|
|
|
|
1,233,111
|
|
|
|
3,589
|
|
|
|
1.18
|
|
|
|
1,158,838
|
|
|
|
2,920
|
|
|
|
1.01
|
|
Noninterest bearing demand deposits
|
|
|
146,135
|
|
|
|
|
|
|
|
|
|
129,385
|
|
|
|
|
|
|
|
|
|
114,974
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
9,890
|
|
|
|
|
|
|
|
|
|
8,673
|
|
|
|
|
|
|
|
|
|
7,698
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
1,463,671
|
|
|
|
|
|
|
|
|
|
1,371,169
|
|
|
|
|
|
|
|
|
|
1,281,510
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
7,834
|
|
|
|
|
|
|
|
|
|
7,834
|
|
|
|
|
|
|
|
|
|
7,834
|
|
|
|
|
|
|
|
Common stock
|
|
|
10,686
|
|
|
|
|
|
|
|
|
|
10,525
|
|
|
|
|
|
|
|
|
|
10,375
|
|
|
|
|
|
|
|
Paid-in capital
|
|
|
101,577
|
|
|
|
|
|
|
|
|
|
99,110
|
|
|
|
|
|
|
|
|
|
96,986
|
|
|
|
|
|
|
|
Treasury stock
|
|
|
(1,084
|
)
|
|
|
|
|
|
|
|
|
(1,084
|
)
|
|
|
|
|
|
|
|
|
(1,084
|
)
|
|
|
|
|
|
|
Retained earnings
|
|
|
41,277
|
|
|
|
|
|
|
|
|
|
38,004
|
|
|
|
|
|
|
|
|
|
32,764
|
|
|
|
|
|
|
|
Accumulated other comprehensive income
|
|
|
(7,199
|
)
|
|
|
|
|
|
|
|
|
(4,798
|
)
|
|
|
|
|
|
|
|
|
(3,348
|
)
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
153,091
|
|
|
|
|
|
|
|
|
|
149,591
|
|
|
|
|
|
|
|
|
|
143,527
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
1,616,762
|
|
|
|
|
|
|
|
|
|
$
|
1,520,760
|
|
|
|
|
|
|
|
|
|
$
|
1,425,037
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread
|
|
|
|
|
|
|
|
|
3.20
|
|
|
|
|
|
|
|
|
|
3.14
|
|
|
|
|
|
|
|
|
|
3.19
|
|
Net interest income-margin
|
|
|
|
|
|
$
|
12,655
|
|
|
|
3.38
|
%
|
|
|
|
|
|
$
|
11,465
|
|
|
|
3.29
|
%
|
|
|
|
|
|
$
|
10,894
|
|
|
|
3.31
|
%
|
|
1 Non-accrual loans are included in total loan
balances, lowering the effective yield for the portfolio in the
aggregate.
|
|
|
Average Balances and Interest Rates
(Unaudited) (Dollars in thousands)
|
|
|
|
|
Six Months Ended June 30, 2018
|
|
|
Six Months Ended June 30, 2017
|
|
|
|
Average Balance
|
|
|
Interest Income/ Expense
|
|
|
Yield/ Cost
|
|
|
Average Balance
|
|
|
Interest Income/ Expense
|
|
|
Yield/ Cost
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits in banks
|
|
|
$
|
3,677
|
|
|
|
$
|
35
|
|
|
|
1.94
|
%
|
|
|
$
|
3,007
|
|
|
|
$
|
21
|
|
|
|
1.41
|
%
|
CDs with other banks
|
|
|
14,778
|
|
|
|
146
|
|
|
|
1.99
|
|
|
|
14,491
|
|
|
|
140
|
|
|
|
1.95
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
152,818
|
|
|
|
1,786
|
|
|
|
2.36
|
|
|
|
114,237
|
|
|
|
1,191
|
|
|
|
2.10
|
|
Tax-exempt
|
|
|
78,375
|
|
|
|
1,372
|
|
|
|
3.53
|
|
|
|
54,999
|
|
|
|
848
|
|
|
|
3.11
|
|
Loans and loans held for sale: 1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
803,593
|
|
|
|
19,261
|
|
|
|
4.83
|
|
|
|
735,979
|
|
|
|
16,113
|
|
|
|
4.41
|
|
Tax exempt
|
|
|
14,362
|
|
|
|
246
|
|
|
|
3.46
|
|
|
|
15,296
|
|
|
|
262
|
|
|
|
3.45
|
|
Real estate
|
|
|
378,095
|
|
|
|
8,846
|
|
|
|
4.72
|
|
|
|
362,807
|
|
|
|
7,965
|
|
|
|
4.43
|
|
Consumer
|
|
|
12,182
|
|
|
|
306
|
|
|
|
5.07
|
|
|
|
14,092
|
|
|
|
342
|
|
|
|
4.89
|
|
Total loans
|
|
|
1,208,232
|
|
|
|
28,659
|
|
|
|
4.78
|
|
|
|
1,128,174
|
|
|
|
24,682
|
|
|
|
4.41
|
|
Total earning assets
|
|
|
1,457,880
|
|
|
|
31,998
|
|
|
|
4.43
|
|
|
|
1,314,908
|
|
|
|
26,882
|
|
|
|
4.12
|
|
Less: Allowance for loan losses
|
|
|
(10,059
|
)
|
|
|
|
|
|
|
|
|
(9,581
|
)
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
16,381
|
|
|
|
|
|
|
|
|
|
15,327
|
|
|
|
|
|
|
|
Other assets
|
|
|
104,401
|
|
|
|
|
|
|
|
|
|
93,248
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
1,568,603
|
|
|
|
|
|
|
|
|
|
$
|
1,413,902
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW
|
|
|
$
|
451,828
|
|
|
|
$
|
1,608
|
|
|
|
0.72
|
|
|
|
$
|
424,225
|
|
|
|
$
|
1,126
|
|
|
|
0.54
|
|
Money market checking
|
|
|
235,586
|
|
|
|
927
|
|
|
|
0.79
|
|
|
|
237,010
|
|
|
|
891
|
|
|
|
0.76
|
|
Savings
|
|
|
46,511
|
|
|
|
27
|
|
|
|
0.12
|
|
|
|
48,342
|
|
|
|
40
|
|
|
|
0.17
|
|
IRAs
|
|
|
17,845
|
|
|
|
131
|
|
|
|
1.48
|
|
|
|
16,426
|
|
|
|
103
|
|
|
|
1.26
|
|
CDs
|
|
|
272,160
|
|
|
|
2,135
|
|
|
|
1.58
|
|
|
|
260,735
|
|
|
|
1,709
|
|
|
|
1.32
|
|
Repurchase agreements and federal funds sold
|
|
|
20,360
|
|
|
|
39
|
|
|
|
0.38
|
|
|
|
22,186
|
|
|
|
36
|
|
|
|
0.33
|
|
FHLB and other borrowings
|
|
|
193,529
|
|
|
|
1,911
|
|
|
|
1.99
|
|
|
|
108,210
|
|
|
|
668
|
|
|
|
1.24
|
|
Subordinated debt
|
|
|
32,766
|
|
|
|
1,100
|
|
|
|
6.77
|
|
|
|
33,524
|
|
|
|
1,109
|
|
|
|
6.67
|
|
Total interest-bearing liabilities
|
|
|
1,270,585
|
|
|
|
7,878
|
|
|
|
1.25
|
|
|
|
1,150,658
|
|
|
|
5,682
|
|
|
|
1.00
|
|
Noninterest bearing demand deposits
|
|
|
137,383
|
|
|
|
|
|
|
|
|
|
114,003
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
9,284
|
|
|
|
|
|
|
|
|
|
8,459
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
1,417,252
|
|
|
|
|
|
|
|
|
|
1,273,120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
7,834
|
|
|
|
|
|
|
|
|
|
8,022
|
|
|
|
|
|
|
|
Common stock
|
|
|
10,606
|
|
|
|
|
|
|
|
|
|
10,212
|
|
|
|
|
|
|
|
Paid-in capital
|
|
|
100,350
|
|
|
|
|
|
|
|
|
|
95,240
|
|
|
|
|
|
|
|
Treasury stock
|
|
|
(1,084
|
)
|
|
|
|
|
|
|
|
|
(1,084
|
)
|
|
|
|
|
|
|
Retained earnings
|
|
|
39,650
|
|
|
|
|
|
|
|
|
|
32,211
|
|
|
|
|
|
|
|
Accumulated other comprehensive income
|
|
|
(6,005
|
)
|
|
|
|
|
|
|
|
|
(3,819
|
)
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
151,351
|
|
|
|
|
|
|
|
|
|
140,782
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
1,568,603
|
|
|
|
|
|
|
|
|
|
$
|
1,413,902
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread
|
|
|
|
|
|
|
|
|
3.18
|
|
|
|
|
|
|
|
|
|
3.13
|
|
Net interest income-margin
|
|
|
|
|
|
$
|
24,120
|
|
|
|
3.34
|
%
|
|
|
|
|
|
$
|
21,200
|
|
|
|
3.25
|
%
|
|
1 Non-accrual loans are included in total loan
balances, lowering the effective yield for the portfolio in the
aggregate.
|
|
|
Selected Financial Data
(Unaudited) (Dollars in thousands, except per share data)
|
|
|
|
|
Quarterly
|
|
|
Year-to-Date
|
|
|
|
2018
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
Second Quarter
|
|
|
First Quarter
|
|
|
Fourth Quarter
|
|
|
Third Quarter
|
|
|
Second Quarter
|
|
|
|
|
Earnings and Per Share Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
2,831
|
|
|
|
$
|
2,594
|
|
|
|
$
|
1,423
|
|
|
|
$
|
2,318
|
|
|
|
$
|
2,260
|
|
|
|
$
|
5,425
|
|
|
|
$
|
3,834
|
|
Net income available to common shareholders
|
|
|
2,709
|
|
|
|
2,473
|
|
|
|
1,299
|
|
|
|
2,195
|
|
|
|
2,138
|
|
|
|
5,182
|
|
|
|
3,583
|
|
Earnings per share - basic
|
|
|
0.25
|
|
|
|
0.24
|
|
|
|
0.12
|
|
|
|
0.21
|
|
|
|
0.21
|
|
|
|
0.49
|
|
|
|
0.35
|
|
Earnings per share - diluted
|
|
|
0.25
|
|
|
|
0.23
|
|
|
|
0.12
|
|
|
|
0.21
|
|
|
|
0.20
|
|
|
|
0.47
|
|
|
|
0.35
|
|
Cash dividends paid per common share
|
|
|
0.025
|
|
|
|
0.025
|
|
|
|
0.025
|
|
|
|
0.025
|
|
|
|
0.025
|
|
|
|
0.05
|
|
|
|
0.05
|
|
Book value per common share
|
|
|
13.93
|
|
|
|
13.53
|
|
|
|
13.63
|
|
|
|
13.51
|
|
|
|
13.31
|
|
|
|
13.93
|
|
|
|
13.31
|
|
Weighted average shares outstanding - basic
|
|
|
10,634,805
|
|
|
|
10,474,138
|
|
|
|
10,444,627
|
|
|
|
10,443,443
|
|
|
|
10,343,933
|
|
|
|
10,554,916
|
|
|
|
10,171,198
|
|
Weighted average shares outstanding - diluted
|
|
|
11,502,148
|
|
|
|
12,714,353
|
|
|
|
10,823,994
|
|
|
|
12,410,070
|
|
|
|
12,181,433
|
|
|
|
10,941,671
|
|
|
|
10,172,254
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets 1
|
|
|
0.70
|
%
|
|
|
0.68
|
%
|
|
|
0.38
|
%
|
|
|
0.63
|
%
|
|
|
0.63
|
%
|
|
|
0.69
|
%
|
|
|
0.54
|
%
|
Return on average equity 1
|
|
|
7.40
|
%
|
|
|
6.94
|
%
|
|
|
3.79
|
%
|
|
|
6.28
|
%
|
|
|
6.30
|
%
|
|
|
7.17
|
%
|
|
|
5.45
|
%
|
Net interest margin 2
|
|
|
3.38
|
%
|
|
|
3.29
|
%
|
|
|
3.29
|
%
|
|
|
3.37
|
%
|
|
|
3.31
|
%
|
|
|
3.34
|
%
|
|
|
3.25
|
%
|
Efficiency ratio 3
|
|
|
82.09
|
%
|
|
|
81.64
|
%
|
|
|
81.11
|
%
|
|
|
83.28
|
%
|
|
|
82.38
|
%
|
|
|
81.88
|
%
|
|
|
83.72
|
%
|
Overhead ratio 1 4
|
|
|
4.76
|
%
|
|
|
4.40
|
%
|
|
|
4.69
|
%
|
|
|
4.87
|
%
|
|
|
5.19
|
%
|
|
|
4.59
|
%
|
|
|
4.93
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Data and Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs
|
|
|
$
|
29
|
|
|
|
$
|
356
|
|
|
|
$
|
572
|
|
|
|
$
|
472
|
|
|
|
$
|
163
|
|
|
|
$
|
385
|
|
|
|
$
|
453
|
|
Recoveries
|
|
|
8
|
|
|
|
71
|
|
|
|
18
|
|
|
|
24
|
|
|
|
16
|
|
|
|
79
|
|
|
|
59
|
|
Net loan charge-offs to total loans 1 5
|
|
|
0.01
|
%
|
|
|
0.10
|
%
|
|
|
0.20
|
%
|
|
|
0.16
|
%
|
|
|
0.05
|
%
|
|
|
0.05
|
%
|
|
|
0.07
|
%
|
Allowance for loan losses
|
|
|
10,651
|
|
|
|
10,067
|
|
|
|
9,878
|
|
|
|
9,396
|
|
|
|
9,748
|
|
|
|
10,651
|
|
|
|
9,748
|
|
Allowance for loan losses to total loans 6
|
|
|
0.88
|
%
|
|
|
0.87
|
%
|
|
|
0.89
|
%
|
|
|
0.86
|
%
|
|
|
0.88
|
%
|
|
|
0.88
|
%
|
|
|
0.88
|
%
|
Nonperforming loans
|
|
|
9,419
|
|
|
|
9,102
|
|
|
|
9,699
|
|
|
|
6,559
|
|
|
|
5,103
|
|
|
|
9,419
|
|
|
|
5,103
|
|
Nonperforming loans to total loans
|
|
|
0.78
|
%
|
|
|
0.79
|
%
|
|
|
0.88
|
%
|
|
|
0.60
|
%
|
|
|
0.46
|
%
|
|
|
0.78
|
%
|
|
|
0.46
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to assets
|
|
|
9.84
|
%
|
|
|
9.51
|
%
|
|
|
9.79
|
%
|
|
|
10.12
|
%
|
|
|
9.74
|
%
|
|
|
9.84
|
%
|
|
|
9.74
|
%
|
Leverage ratio
|
|
|
9.90
|
%
|
|
|
9.50
|
%
|
|
|
9.27
|
%
|
|
|
9.41
|
%
|
|
|
9.59
|
%
|
|
|
9.90
|
%
|
|
|
9.59
|
%
|
Common equity Tier 1 capital ratio
|
|
|
11.28
|
%
|
|
|
10.60
|
%
|
|
|
10.55
|
%
|
|
|
10.76
|
%
|
|
|
10.32
|
%
|
|
|
11.28
|
%
|
|
|
10.32
|
%
|
Tier 1 risk-based capital ratio
|
|
|
12.20
|
%
|
|
|
11.57
|
%
|
|
|
11.54
|
%
|
|
|
11.79
|
%
|
|
|
11.33
|
%
|
|
|
12.20
|
%
|
|
|
11.33
|
%
|
Total risk-based capital ratio
|
|
|
14.34
|
%
|
|
|
14.80
|
%
|
|
|
14.87
|
%
|
|
|
15.18
|
%
|
|
|
14.66
|
%
|
|
|
14.34
|
%
|
|
|
14.66
|
%
|
|
1 annualized for the quarterly periods presented
|
2 net interest income as a percentage of average
interest earning assets
|
3 noninterest expense as a percentage of net interest
income and noninterest income
|
4 noninterest expense as a percentage of average assets
|
5 charge-offs less recoveries
|
6 excludes loans held for sale
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180730005516/en/
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