|
Georgia
|
| |
6022
|
| |
58-1807304
|
|
|
(State or other jurisdiction of
incorporation or organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer
Identification Number) |
|
|
United Community Banks, Inc.
125 Highway 515 East Blairsville, Georgia 30512 (706) 745-2151 |
| |
Jimmy C. Tallent
125 Highway 515 East Blairsville, Georgia 30512 (706) 745-2151 |
|
|
(Address, including zip code, and telephone number,
including area code, of registrant’s principal executive offices) |
| |
(Name, address, including zip code, and telephone number,
including area code, of agent for service) |
|
|
Copies to:
|
| |||
|
James W. Stevens
Troutman Sanders LLP 600 Peachtree Street NE, Suite 5200 Atlanta, Georgia 30308 (404) 885-3721 |
| |
Geoffrey W. Adams
Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, L.L.P. Wells Fargo Capital Center 150 Fayetteville Street, Suite 2300 Raleigh, North Carolina 27601 (919) 821-6738 |
|
| Large accelerated filer | | | ☒ | | | Accelerated filer | | | ☐ | |
| Non-accelerated filer | | | ☐ (Do not check if a smaller reporting company) | | | Smaller reporting company | | | ☐ | |
| | | | | | | Emerging growth company | | | ☐ | |
| Exchange Act Rule 13e-4(i) (Cross-Border Issuer Tender Offer) | | | ☐ | |
| Exchange Act Rule 14d-1(d) (Cross-Border Third-Party Tender Offer) | | | ☐ | |
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Title of Each Class of Securities to be Registered
|
| |
Amount to be
Registered |
| |
Proposed Maximum
Offering Price per Share |
| |
Proposed Maximum
Aggregate Offering Price |
| |
Amount of
Registration Fee |
| |||||||||
Common Stock, par value $1.00 per share
|
| | | | 4,184,041(1) | | | |
Not Applicable
|
| | | $ | 107,005,247(2) | | | | | $ | 12,401.91(3) | | |
|
|
| |
|
|
| | | | By Order of the Board of Directors, | |
| [•], 2017 Four Oaks, North Carolina |
| |
Ayden R. Lee, Jr., Chairman
|
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Page
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Page
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| | | | F-1 | ||
Appendix A — Agreement and Plan of Merger | | | ||||
Appendix B — Copy of Article 13 of the North Carolina Business Corporation Act | | | ||||
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| | |
United Common Stock
|
| |
Four Oaks Common Stock
|
| ||||||||||||||||||||||||||||||
| | |
High
|
| |
Low
|
| |
Close
|
| |
High
|
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Low
|
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Close
|
| ||||||||||||||||||
2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Third Quarter (through [•], 2017)
|
| | | $ | [•] | | | | | $ | [•] | | | | | $ | [•] | | | | | $ | [•] | | | | | $ | [•] | | | | | $ | [•] | | |
Second Quarter
|
| | | | 28.57 | | | | | | 25.39 | | | | | | 27.80 | | | | | | 18.64 | | | | | | 13.01 | | | | | | 18.60 | | |
First Quarter
|
| | | | 30.47 | | | | | | 25.29 | | | | | | 27.69 | | | | | | 18.25 | | | | | | 13.10 | | | | | | 14.04 | | |
2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fourth Quarter
|
| | | | 30.22 | | | | | | 20.26 | | | | | | 29.62 | | | | | | 14.40 | | | | | | 11.05 | | | | | | 13.24 | | |
Third Quarter
|
| | | | 21.13 | | | | | | 17.42 | | | | | | 21.02 | | | | | | 11.85 | | | | | | 10.35 | | | | | | 11.39 | | |
Second Quarter
|
| | | | 20.60 | | | | | | 17.07 | | | | | | 18.29 | | | | | | 10.75 | | | | | | 9.25 | | | | | | 10.29 | | |
First Quarter
|
| | | | 19.27 | | | | | | 15.74 | | | | | | 18.47 | | | | | | 9.60 | | | | | | 8.75 | | | | | | 9.29 | | |
2015 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fourth Quarter
|
| | | | 22.23 | | | | | | 18.61 | | | | | | 19.49 | | | | | | 9.15 | | | | | | 8.00 | | | | | | 8.74 | | |
Third Quarter
|
| | | | 22.23 | | | | | | 18.58 | | | | | | 20.44 | | | | | | 9.40 | | | | | | 7.59 | | | | | | 8.24 | | |
Second Quarter
|
| | | | 21.23 | | | | | | 17.91 | | | | | | 20.87 | | | | | | 8.35 | | | | | | 7.10 | | | | | | 7.59 | | |
First Quarter
|
| | | | 19.53 | | | | | | 16.48 | | | | | | 18.88 | | | | | | 8.60 | | | | | | 7.00 | | | | | | 7.49 | | |
| | |
At or for the Six Months
Ended June 30, |
| |
For the Years Ended December 31,
|
| ||||||||||||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |
2012
|
| |||||||||||||||||||||
| | |
(in thousands, except per share data)
|
| |||||||||||||||||||||||||||||||||||||||
INCOME SUMMARY | | | | | | | | | |||||||||||||||||||||||||||||||||||
Interest revenue
|
| | | $ | 184,124 | | | | | $ | 161,803 | | | | | $ | 335,020 | | | | | $ | 278,532 | | | | | $ | 248,432 | | | | | $ | 245,840 | | | | | $ | 265,977 | | |
Interest expense
|
| | | | 15,422 | | | | | | 11,933 | | | | | | 25,236 | | | | | | 21,109 | | | | | | 25,551 | | | | | | 27,682 | | | | | | 37,909 | | |
Net interest revenue
|
| | | | 168,702 | | | | | | 149,870 | | | | | | 309,784 | | | | | | 257,423 | | | | | | 222,881 | | | | | | 218,158 | | | | | | 228,068 | | |
Provision for credit losses
|
| | | | 1,600 | | | | | | (500) | | | | | | (800) | | | | | | 3,700 | | | | | | 8,500 | | | | | | 65,500 | | | | | | 62,500 | | |
Fee revenue
|
| | | | 45,759 | | | | | | 42,103 | | | | | | 93,967 | | | | | | 72,529 | | | | | | 55,554 | | | | | | 56,598 | | | | | | 56,112 | | |
Total revenue
|
| | | | 212,861 | | | | | | 192,473 | | | | | | 404,281 | | | | | | 326,252 | | | | | | 269,935 | | | | | | 209,256 | | | | | | 221,680 | | |
Expenses
|
| | | | 126,055 | | | | | | 115,945 | | | | | | 241,289 | | | | | | 211,238 | | | | | | 162,865 | | | | | | 174,304 | | | | | | 186,774 | | |
Income before income tax expense
|
| | | | 86,806 | | | | | | 76,528 | | | | | | 162,992 | | | | | | 115,014 | | | | | | 107,070 | | | | | | 34,952 | | | | | | 34,906 | | |
Income tax expense (benefit)
|
| | | | 35,015 | | | | | | 28,967 | | | | | | 62,336 | | | | | | 43,436 | | | | | | 39,450 | | | | | | (238,188) | | | | | | 1,050 | | |
Net income
|
| | | | 51,791 | | | | | | 47,561 | | | | | | 100,656 | | | | | | 71,578 | | | | | | 67,620 | | | | | | 273,140 | | | | | | 33,856 | | |
Preferred dividends
|
| | | | — | | | | | | 21 | | | | | | 21 | | | | | | 67 | | | | | | 439 | | | | | | 12,078 | | | | | | 12,148 | | |
Net income available to common shareholders – GAAP
|
| | | $ | 51,791 | | | | | $ | 47,540 | | | | | $ | 100,635 | | | | | $ | 71,511 | | | | | $ | 67,181 | | | | | $ | 261,062 | | | | | $ | 21,708 | | |
Merger-related and other
charges |
| | | | 3,884 | | | | | | 3,829 | | | | | | 8,122 | | | | | | 17,995 | | | | | | — | | | | | | — | | | | | | — | | |
Income tax benefit of merger-related and other charges
|
| | | | (1,433) | | | | | | (1,449) | | | | | | (3,074) | | | | | | (6,388) | | | | | | — | | | | | | — | | | | | | — | | |
Impairment of deferred tax asset
on cancelled non-qualified stock options |
| | | | — | | | | | | — | | | | | | 976 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Release of disproportionate tax effect lodged in OCI
|
| | | | 3,400 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net income available to common shareholders – operating(1)
|
| | | $ | 57,642 | | | | | $ | 49,920 | | | | | $ | 106,659 | | | | | $ | 83,118 | | | | | $ | 67,181 | | | | | $ | 261,062 | | | | | $ | 21,708 | | |
|
| | |
At or for the Six Months
Ended June 30, |
| |
For the Years Ended December 31,
|
| ||||||||||||||||||||||||||||||||||||
| | |
2017
|
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2016
|
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2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |
2012
|
| |||||||||||||||||||||
| | |
(in thousands, except per share data)
|
| |||||||||||||||||||||||||||||||||||||||
PERFORMANCE MEASURES
|
| | | | | | | | |||||||||||||||||||||||||||||||||||
Per common share: | | | | | | | | | |||||||||||||||||||||||||||||||||||
Diluted net income – GAAP
|
| | | $ | .72 | | | | | $ | .66 | | | | | $ | 1.40 | | | | | $ | 1.09 | | | | | $ | 1.11 | | | | | $ | 4.44 | | | | | $ | .38 | | |
Diluted net income –
operating(1) |
| | | | .80 | | | | | | .69 | | | | | | 1.48 | | | | | | 1.27 | | | | | | 1.11 | | | | | | 4.44 | | | | | | .38 | | |
Cash dividends declared
|
| | | | .18 | | | | | | .14 | | | | | | .30 | | | | | | .22 | | | | | | .11 | | | | | | — | | | | | | — | | |
Book value
|
| | | | 15.83 | | | | | | 14.80 | | | | | | 15.06 | | | | | | 14.02 | | | | | | 12.20 | | | | | | 11.30 | | | | | | 6.67 | | |
Tangible book value(3)
|
| | | | 13.74 | | | | | | 12.84 | | | | | | 12.95 | | | | | | 12.06 | | | | | | 12.15 | | | | | | 11.26 | | | | | | 6.57 | | |
Key performance ratios: | | | | | | | | | |||||||||||||||||||||||||||||||||||
Return on common equity – GAAP(2)
|
| | | | 9.27% | | | | | | 9.06% | | | | | | 9.41% | | | | | | 8.15% | | | | | | 9.17% | | | | | | 46.72% | | | | | | 5.43% | | |
Return on common equity – operating(1)(2)
|
| | | | 10.32 | | | | | | 9.51 | | | | | | 9.98 | | | | | | 9.48 | | | | | | 9.17 | | | | | | 46.72 | | | | | | 5.43 | | |
Return on tangible common equity – operating(1)(2)(3)
|
| | | | 12.15 | | | | | | 11.24 | | | | | | 11.86 | | | | | | 10.24 | | | | | | 9.32 | | | | | | 47.35 | | | | | | 6.27 | | |
Return on assets – GAAP
|
| | | | .98 | | | | | | .98 | | | | | | 1.00 | | | | | | .85 | | | | | | .91 | | | | | | 3.86 | | | | | | .49 | | |
Return on assets – operating(1)
|
| | | | 1.09 | | | | | | 1.03 | | | | | | 1.06 | | | | | | .98 | | | | | | .91 | | | | | | 3.86 | | | | | | .49 | | |
Dividend payout ratio – GAAP
|
| | | | 25.00 | | | | | | 21.21 | | | | | | 21.43 | | | | | | 20.18 | | | | | | 9.91 | | | | | | — | | | | | | — | | |
Dividend payout ratio – operating(1)
|
| | | | 22.50 | | | | | | 20.29 | | | | | | 20.27 | | | | | | 17.32 | | | | | | 9.91 | | | | | | — | | | | | | — | | |
Net interest margin (fully taxable
equivalent) |
| | | | 3.46 | | | | | | 3.38 | | | | | | 3.36 | | | | | | 3.30 | | | | | | 3.26 | | | | | | 3.30 | | | | | | 3.51 | | |
Efficiency ratio – GAAP
|
| | | | 58.58 | | | | | | 60.44 | | | | | | 59.80 | | | | | | 63.96 | | | | | | 58.26 | | | | | | 63.14 | | | | | | 65.43 | | |
Efficiency ratio – operating(1)
|
| | | | 56.77 | | | | | | 58.45 | | | | | | 57.78 | | | | | | 58.51 | | | | | | 58.26 | | | | | | 63.14 | | | | | | 65.43 | | |
Average equity to average
assets |
| | | | 10.36 | | | | | | 10.72 | | | | | | 10.54 | | | | | | 10.27 | | | | | | 9.69 | | | | | | 10.35 | | | | | | 8.47 | | |
Average tangible equity to average assets(3)
|
| | | | 9.09 | | | | | | 9.42 | | | | | | 9.21 | | | | | | 9.74 | | | | | | 9.67 | | | | | | 10.31 | | | | | | 8.38 | | |
Average tangible common equity
to average assets(3) |
| | | | 9.09 | | | | | | 9.38 | | | | | | 9.19 | | | | | | 9.66 | | | | | | 9.60 | | | | | | 7.55 | | | | | | 5.54 | | |
Tangible common equity to risk-weighted assets(3)
|
| | | | 12.44 | | | | | | 12.87 | | | | | | 11.84 | | | | | | 12.82 | | | | | | 13.82 | | | | | | 13.17 | | | | | | 8.26 | | |
ASSET QUALITY | | | | | | | | | |||||||||||||||||||||||||||||||||||
Non-performing loans
|
| | | $ | 23,095 | | | | | $ | 21,348 | | | | | $ | 21,539 | | | | | $ | 22,653 | | | | | $ | 17,881 | | | | | $ | 26,819 | | | | | $ | 109,894 | | |
Foreclosed properties
|
| | | | 2,739 | | | | | | 6,176 | | | | | | 7,949 | | | | | | 4,883 | | | | | | 1,726 | | | | | | 4,221 | | | | | | 18,264 | | |
Total non-performing assets (NPAs)
|
| | | | 25,834 | | | | | | 27,524 | | | | | | 29,448 | | | | | | 27,536 | | | | | | 19,607 | | | | | | 31,040 | | | | | | 128,158 | | |
Allowance for loan losses
|
| | | | 59,500 | | | | | | 64,253 | | | | | | 61,442 | | | | | | 68,448 | | | | | | 71,619 | | | | | | 76,762 | | | | | | 107,137 | | |
Net charge-offs
|
| | | | 3,302 | | | | | | 3,868 | | | | | | 6,766 | | | | | | 6,259 | | | | | | 13,879 | | | | | | 93,710 | | | | | | 69,831 | | |
Allowance for loan losses to loans
|
| | | | .85% | | | | | | 1.02% | | | | | | .89% | | | | | | 1.14% | | | | | | 1.53% | | | | | | 1.77% | | | | | | 2.57% | | |
Net charge-offs to average
loans |
| | | | .10 | | | | | | .13 | | | | | | .11 | | | | | | .12 | | | | | | .31 | | | | | | 2.22 | | | | | | 1.69 | | |
NPAs to loans and foreclosed properties
|
| | | | .37 | | | | | | .44 | | | | | | .43 | | | | | | .46 | | | | | | .42 | | | | | | .72 | | | | | | 3.06 | | |
NPAs to total assets
|
| | | | .24 | | | | | | .28 | | | | | | .28 | | | | | | .29 | | | | | | .26 | | | | | | .42 | | | | | | 1.88 | | |
| | |
At or for the Six Months
Ended June 30, |
| |
For the Years Ended December 31,
|
| ||||||||||||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |
2012
|
| |||||||||||||||||||||
| | |
($ in millions)
|
| |||||||||||||||||||||||||||||||||||||||
AVERAGE BALANCES | | | | | | | | | |||||||||||||||||||||||||||||||||||
Loans
|
| | | $ | 6,942 | | | | | $ | 6,077 | | | | | $ | 6,413 | | | | | $ | 5,298 | | | | | $ | 4,450 | | | | | $ | 4,254 | | | | | $ | 4,166 | | |
Investment securities
|
| | | | 2,798 | | | | | | 2,733 | | | | | | 2,691 | | | | | | 2,368 | | | | | | 2,274 | | | | | | 2,190 | | | | | | 2,089 | | |
Earning assets
|
| | | | 9,885 | | | | | | 8,956 | | | | | | 9,257 | | | | | | 7,834 | | | | | | 6,880 | | | | | | 6,649 | | | | | | 6,547 | | |
Total assets
|
| | | | 10,691 | | | | | | 9,721 | | | | | | 10,054 | | | | | | 8,462 | | | | | | 7,436 | | | | | | 7,074 | | | | | | 6,865 | | |
Deposits
|
| | | | 8,626 | | | | | | 7,922 | | | | | | 8,177 | | | | | | 7,055 | | | | | | 6,228 | | | | | | 6,027 | | | | | | 5,885 | | |
Shareholders’ equity
|
| | | | 1,108 | | | | | | 1,042 | | | | | | 1,059 | | | | | | 869 | | | | | | 720 | | | | | | 732 | | | | | | 582 | | |
Common shares – basic (thousands)
|
| | | | 71,798 | | | | | | 72,187 | | | | | | 71,910 | | | | | | 65,488 | | | | | | 60,588 | | | | | | 58,787 | | | | | | 57,857 | | |
Common shares – diluted (thousands)
|
| | | | 71,809 | | | | | | 72,191 | | | | | | 71,915 | | | | | | 65,492 | | | | | | 60,590 | | | | | | 58,845 | | | | | | 57,857 | | |
AT PERIOD END | | | | | | | | | |||||||||||||||||||||||||||||||||||
Loans
|
| | | $ | 7,041 | | | | | $ | 6,287 | | | | | $ | 6,921 | | | | | $ | 5,995 | | | | | $ | 4,672 | | | | | $ | 4,329 | | | | | $ | 4,175 | | |
Investment securities
|
| | | | 2,787 | | | | | | 2,677 | | | | | | 2,762 | | | | | | 2,656 | | | | | | 2,198 | | | | | | 2,312 | | | | | | 2,079 | | |
Total assets
|
| | | | 10,837 | | | | | | 9,928 | | | | | | 10,709 | | | | | | 9,616 | | | | | | 7,558 | | | | | | 7,424 | | | | | | 6,801 | | |
Deposits
|
| | | | 8,736 | | | | | | 7,857 | | | | | | 8,638 | | | | | | 7,873 | | | | | | 6,335 | | | | | | 6,202 | | | | | | 5,952 | | |
Shareholders’ equity
|
| | | | 1,133 | | | | | | 1,060 | | | | | | 1,076 | | | | | | 1,018 | | | | | | 740 | | | | | | 796 | | | | | | 581 | | |
Common shares outstanding (thousands)
|
| | | | 70,981 | | | | | | 71,122 | | | | | | 70,899 | | | | | | 71,484 | | | | | | 60,259 | | | | | | 59,432 | | | | | | 57,741 | | |
| | |
At or for the Six Months
Ended June 30, |
| |
For the Years Ended December 31,
|
| ||||||||||||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |
2012
|
| |||||||||||||||||||||
| | |
(in thousands, except per share data)
|
| |||||||||||||||||||||||||||||||||||||||
Expense reconciliation | | | | | | | | | |||||||||||||||||||||||||||||||||||
Expenses (GAAP)
|
| | | $ | 126,055 | | | | | $ | 115,945 | | | | | $ | 241,289 | | | | | $ | 211,238 | | | | | $ | 162,865 | | | | | $ | 174,304 | | | | | $ | 186,774 | | |
Merger-related and other
charges |
| | | | (3,884) | | | | | | (3,829) | | | | | | (8,122) | | | | | | (17,995) | | | | | | — | | | | | | — | | | | | | — | | |
Expenses – operating
|
| | | $ | 122,171 | | | | | $ | 112,116 | | | | | $ | 233,167 | | | | | $ | 193,243 | | | | | $ | 162,865 | | | | | $ | 174,304 | | | | | $ | 186,774 | | |
Net income reconciliation | | | | | | | | | |||||||||||||||||||||||||||||||||||
Net income (GAAP)
|
| | | $ | 51,791 | | | | | $ | 47,561 | | | | | $ | 100,656 | | | | | $ | 71,578 | | | | | $ | 67,620 | | | | | $ | 273,140 | | | | | $ | 33,856 | | |
Merger-related and other
charges |
| | | | 3,884 | | | | | | 3,829 | | | | | | 8,122 | | | | | | 17,995 | | | | | | — | | | | | | — | | | | | | — | | |
Income tax benefit of merger-related and other charges
|
| | | | (1,433) | | | | | | (1,449) | | | | | | (3,074) | | | | | | (6,388) | | | | | | — | | | | | | — | | | | | | — | | |
Impairment of deferred tax asset on cancelled non-qualified stock options
|
| | | | — | | | | | | — | | | | | | 976 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Release of disproportionate tax effects lodged in OCI
|
| | | | 3,400 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net income – operating
|
| | | $ | 57,642 | | | | | $ | 49,920 | | | | | $ | 106,680 | | | | | $ | 83,185 | | | | | $ | 67,620 | | | | | $ | 273,140 | | | | | $ | 33,856 | | |
|
| | |
At or for the Six Months
Ended June 30, |
| |
For the Years Ended December 31,
|
| ||||||||||||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |
2012
|
| |||||||||||||||||||||
| | |
(in thousands, except per share data)
|
| |||||||||||||||||||||||||||||||||||||||
Net income available to common shareholders reconciliation
|
| | | | | | | | |||||||||||||||||||||||||||||||||||
Net income available to common shareholders (GAAP)
|
| | | $ | 51,791 | | | | | $ | 47,540 | | | | | $ | 100,635 | | | | | $ | 71,511 | | | | | $ | 67,181 | | | | | $ | 261,062 | | | | | $ | 21,708 | | |
Merger-related and other
charges |
| | | | 3,884 | | | | | | 3,829 | | | | | | 8,122 | | | | | | 17,995 | | | | | | — | | | | | | — | | | | | | — | | |
Income tax benefit of merger-related and other charges
|
| | | | (1,433) | | | | | | (1,449) | | | | | | (3,074) | | | | | | (6,388) | | | | | | — | | | | | | — | | | | | | — | | |
Impairment of deferred tax asset on cancelled non-qualified stock options
|
| | | | — | | | | | | — | | | | | | 976 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Release of disproportionate tax effects lodged in OCI
|
| | | | 3,400 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net income available to common shareholders – operating
|
| | | $ | 57,642 | | | | | $ | 49,920 | | | | | $ | 106,659 | | | | | $ | 83,118 | | | | | $ | 67,181 | | | | | $ | 261,062 | | | | | $ | 21,708 | | |
Diluted income per common share reconciliation
|
| | | | | | | | |||||||||||||||||||||||||||||||||||
Diluted income per common share (GAAP)
|
| | | $ | .72 | | | | | $ | .66 | | | | | $ | 1.40 | | | | | $ | 1.09 | | | | | $ | 1.11 | | | | | $ | 4.44 | | | | | $ | .38 | | |
Merger-related and other
charges |
| | | | .03 | | | | | | .03 | | | | | | .07 | | | | | | .18 | | | | | | — | | | | | | — | | | | | | — | | |
Impairment of deferred tax asset on cancelled non-qualified stock options
|
| | | | — | | | | | | — | | | | | | .01 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Release of disproportionate tax effects lodged in OCI
|
| | | | .05 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Diluted income per common share – operating
|
| | | $ | .80 | | | | | $ | .69 | | | | | $ | 1.48 | | | | | $ | 1.27 | | | | | $ | 1.11 | | | | | $ | 4.44 | | | | | $ | .38 | | |
Book value per common share reconciliation
|
| | | | | | | | |||||||||||||||||||||||||||||||||||
Book value per common share (GAAP)
|
| | | $ | 15.83 | | | | | $ | 14.80 | | | | | $ | 15.06 | | | | | $ | 14.02 | | | | | $ | 12.20 | | | | | $ | 11.30 | | | | | $ | 6.67 | | |
Effect on goodwill and other intangibles
|
| | | | (2.09) | | | | | | (1.96) | | | | | | (2.11) | | | | | | (1.96) | | | | | | (.05) | | | | | | (.04) | | | | | | (.10) | | |
Tangible book value per common share
|
| | | $ | 13.74 | | | | | $ | 12.84 | | | | | $ | 12.95 | | | | | $ | 12.06 | | | | | $ | 12.15 | | | | | $ | 11.26 | | | | | $ | 6.57 | | |
Return on tangible common equity
reconciliation |
| | | | | | | | |||||||||||||||||||||||||||||||||||
Return on common equity (GAAP)
|
| | | | 9.27% | | | | | | 9.06% | | | | | | 9.41% | | | | | | 8.15% | | | | | | 9.17% | | | | | | 46.72% | | | | | | 5.43% | | |
Merger-related and other
charges |
| | | | .44 | | | | | | .45 | | | | | | .48 | | | | | | 1.33 | | | | | | — | | | | | | — | | | | | | — | | |
Impairment of deferred tax asset on cancelled non-qualified stock options
|
| | | | — | | | | | | — | | | | | | .09 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Release of disproportionate tax effects lodged in OCI
|
| | | | .61 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Return on common equity – operating
|
| | | | 10.32 | | | | | | 9.51 | | | | | | 9.98 | | | | | | 9.48 | | | | | | 9.17 | | | | | | 46.72 | | | | | | 5.43 | | |
Effect on goodwill and other intangibles
|
| | | | 1.83 | | | | | | 1.73 | | | | | | 1.88 | | | | | | .76 | | | | | | .15 | | | | | | .63 | | | | | | .84 | | |
Return on tangible common equity – operating
|
| | | | 12.15% | | | | | | 11.24% | | | | | | 11.86% | | | | | | 10.24% | | | | | | 9.32% | | | | | | 47.35% | | | | | | 6.27% | | |
|
| | |
At or for the Six Months
Ended June 30, |
| |
For the Years Ended December 31,
|
| ||||||||||||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |
2012
|
| |||||||||||||||||||||
| | |
(in thousands, except per share data)
|
| |||||||||||||||||||||||||||||||||||||||
Return on assets reconciliation | | | | | | | | | |||||||||||||||||||||||||||||||||||
Return on assets (GAAP)
|
| | | | .98% | | | | | | .98% | | | | | | 1.00% | | | | | | .85% | | | | | | .91% | | | | | | 3.86% | | | | | | .49% | | |
Merger-related and other
charges |
| | | | .05 | | | | | | .05 | | | | | | .05 | | | | | | .13 | | | | | | — | | | | | | — | | | | | | — | | |
Impairment of deferred tax asset on cancelled non-qualified stock options
|
| | | | — | | | | | | — | | | | | | .01 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Release of disproportionate tax effects lodged in OCI
|
| | | | .06 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Return on assets – operating
|
| | | | 1.09% | | | | | | 1.03% | | | | | | 1.06% | | | | | | .98% | | | | | | .91% | | | | | | 3.86% | | | | | | .49% | | |
Dividend payout ratio reconciliation
|
| | | | | | | | |||||||||||||||||||||||||||||||||||
Dividend payout ratio (GAAP)
|
| | | | 25.00% | | | | | | 21.21% | | | | | | 21.43% | | | | | | 20.18% | | | | | | 9.91% | | | | | | —% | | | | | | —% | | |
Merger-related and other
charges |
| | | | (1.00) | | | | | | (.92) | | | | | | (1.02) | | | | | | (2.86) | | | | | | — | | | | | | — | | | | | | — | | |
Impairment of deferred tax asset on cancelled non-qualified stock options
|
| | | | — | | | | | | — | | | | | | (.14) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Release of disproportionate tax effects lodged in OCI
|
| | | | (1.50) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Dividend payout ratio – operating
|
| | | | 22.50% | | | | | | 20.29% | | | | | | 20.27% | | | | | | 17.32% | | | | | | 9.91% | | | | | | —% | | | | | | —% | | |
Efficiency ratio reconciliation | | | | | | | | | |||||||||||||||||||||||||||||||||||
Efficiency ratio (GAAP)
|
| | | | 58.58% | | | | | | 60.44% | | | | | | 59.80% | | | | | | 63.96% | | | | | | 58.26% | | | | | | 63.14% | | | | | | 65.43% | | |
Merger-related and other
charges |
| | | | (1.81) | | | | | | (1.99) | | | | | | (2.02) | | | | | | (5.45) | | | | | | — | | | | | | — | | | | | | — | | |
Efficiency ratio – operating
|
| | | | 56.77% | | | | | | 58.45% | | | | | | 57.78% | | | | | | 58.51% | | | | | | 58.26% | | | | | | 63.14% | | | | | | 65.43% | | |
Average equity to assets reconciliation
|
| | | | | | | | |||||||||||||||||||||||||||||||||||
Equity to assets (GAAP)
|
| | | | 10.36% | | | | | | 10.72% | | | | | | 10.54% | | | | | | 10.27% | | | | | | 9.69% | | | | | | 10.35% | | | | | | 8.47% | | |
Effect of goodwill and other intangibles
|
| | | | (1.27) | | | | | | (1.30) | | | | | | (1.33) | | | | | | (.53) | | | | | | (.02) | | | | | | (.04) | | | | | | (.09) | | |
Tangible equity to assets
|
| | | | 9.09 | | | | | | 9.42 | | | | | | 9.21 | | | | | | 9.74 | | | | | | 9.67 | | | | | | 10.31 | | | | | | 8.38 | | |
Effect of preferred equity
|
| | | | — | | | | | | (.04) | | | | | | (.02) | | | | | | (.08) | | | | | | (.07) | | | | | | (2.76) | | | | | | (2.84) | | |
Tangible common equity to assets
|
| | | | 9.09% | | | | | | 9.38% | | | | | | 9.19% | | | | | | 9.66% | | | | | | 9.60% | | | | | | 7.55% | | | | | | 5.54% | | |
Tangible common equity to risk-weighted assets reconciliation
|
| | | | | | | | |||||||||||||||||||||||||||||||||||
Tier 1 capital ratio (Regulatory)
|
| | | | 11.91% | | | | | | 11.44% | | | | | | 11.23% | | | | | | 11.45% | | | | | | 12.06% | | | | | | 12.74% | | | | | | 14.16% | | |
Effect of other comprehensive income
|
| | | | (.15) | | | | | | (.06) | | | | | | (.34) | | | | | | (.38) | | | | | | (.35) | | | | | | (.39) | | | | | | (.51) | | |
Effect of deferred tax limitation
|
| | | | .95 | | | | | | 1.63 | | | | | | 1.26 | | | | | | 2.05 | | | | | | 3.11 | | | | | | 4.26 | | | | | | — | | |
Effect of trust preferred
|
| | | | (.25) | | | | | | (.08) | | | | | | (.25) | | | | | | (.08) | | | | | | (1.00) | | | | | | (1.04) | | | | | | (1.15) | | |
Effect of preferred equity
|
| | | | — | | | | | | — | | | | | | — | | | | | | (.15) | | | | | | — | | | | | | (2.39) | | | | | | (4.24) | | |
Basel III intangibles transition adjustment
|
| | | | (.02) | | | | | | (.06) | | | | | | (.06) | | | | | | (.10) | | | | | | — | | | | | | — | | | | | | — | | |
Basel III disallowed investments
|
| | | | — | | | | | | — | | | | | | — | | | | | | .03 | | | | | | — | | | | | | — | | | | | | — | | |
Tangible common equity to risk-weighted assets
|
| | | | 12.44% | | | | | | 12.87% | | | | | | 11.84% | | | | | | 12.82% | | | | | | 13.82% | | | | | | 13.18% | | | | | | 8.26% | | |
|
| | |
Unaudited Comparative Per Common Share Data
|
| |||||||||||||||||||||
| | |
United
|
| |
Four Oaks
|
| |
United Pro
Forma Combined |
| |
Four Oaks
Pro Forma Equivalent Per Share(1) |
| ||||||||||||
Basic Earnings | | | | | | ||||||||||||||||||||
Year ended December 31, 2016
|
| | | $ | 1.40 | | | | | $ | 1.06 | | | | | $ | 1.41 | | | | | $ | 0.87 | | |
Six months ended June 30, 2017
|
| | | $ | 0.72 | | | | | $ | 0.38 | | | | | $ | 0.71 | | | | | $ | 0.44 | | |
Diluted Earnings | | | | | | ||||||||||||||||||||
Year ended December 31, 2016
|
| | | $ | 1.40 | | | | | $ | 1.04 | | | | | $ | 1.41 | | | | | $ | 0.87 | | |
Six months ended June 30, 2017
|
| | | $ | 0.72 | | | | | $ | 0.38 | | | | | $ | 0.71 | | | | | $ | 0.44 | | |
Cash Dividends Declared(2) | | | | | | ||||||||||||||||||||
Year ended December 31, 2016
|
| | | $ | 0.30 | | | | | $ | 0.00 | | | | | $ | 0.30 | | | | | $ | 0.19 | | |
Six months ended June 30, 2017
|
| | | $ | 0.18 | | | | | $ | 0.01 | | | | | $ | 0.18 | | | | | $ | 0.11 | | |
Book Value | | | | | | ||||||||||||||||||||
December 31, 2016
|
| | | $ | 15.06 | | | | | $ | 10.06 | | | | | $ | 15.69 | | | | | $ | 9.70 | | |
June 30, 2017
|
| | | $ | 15.83 | | | | | $ | 10.53 | | | | | $ | 16.42 | | | | | $ | 10.15 | | |
|
Transaction Price/Adjusted LTM Earnings Per Share(1):
|
| | | | 30.4x | | |
|
Transaction Price/March 31, 2017 Book Value Per Share(2):
|
| | | | 178% | | |
|
Transaction Price/March 31, 2017 Tangible Book Value Per Share(2):
|
| | | | 178% | | |
|
Tangible Book Premium/Core Deposits(3):
|
| | | | 12.0% | | |
|
Market Premium as of June 23, 2017
|
| | | | 23.5% | | |
| | |
Beginning
June 23, 2014 |
| |
Ending
June 23, 2017 |
| ||||||
Four Oaks
|
| | | | 100% | | | | | | 227.4% | | |
Four Oaks Peer Group
|
| | | | 100% | | | | | | 166.1% | | |
NASDAQ Bank Index
|
| | | | 100% | | | | | | 139.8% | | |
S&P 500 Index
|
| | | | 100% | | | | | | 124.2% | | |
| | |
Beginning
June 23, 2014 |
| |
Ending
June 23, 2017 |
| ||||||
United
|
| | | | 100% | | | | | | 159.2% | | |
United Peer Group
|
| | | | 100% | | | | | | 138.2% | | |
NASDAQ Bank Index
|
| | | | 100% | | | | | | 139.8% | | |
S&P 500 Index
|
| | | | 100% | | | | | | 124.2% | | |
| Southern National Bancorp of Virginia, Inc. | | | Carolina Alliance Bank | |
| Peoples Bancorp of North Carolina, Inc. | | | Virginia National Bankshares Corporation | |
| John Marshall Bancorp, Inc. | | | Fauquier Bankshares, Inc. | |
| FVCBankcorp, Inc. | | | Bank of the James Financial Group, Inc. | |
| First Community Corporation | | | MainStreet Bancshares, Inc. | |
| Select Bancorp, Inc. | | | Freedom Bank of Virginia | |
| First National Corporation | | |
| | | | | | | | |
Four Oaks Peer Group
|
| |||||||||||||||||||||
| | |
Four Oaks(7)
|
| |
High
|
| |
Low
|
| |
Mean
|
| |
Median
|
| |||||||||||||||
Total Assets (in millions)
|
| | | $ | 737 | | | | | $ | 1,177 | | | | | $ | 503 | | | | | $ | 800 | | | | | $ | 727 | | |
Loans/Deposits
|
| | | | 91.6% | | | | | | 109.8% | | | | | | 71.6% | | | | | | 91.0% | | | | | | 90.6% | | |
Nonperforming assets(1)/Total Assets(2)
|
| | | | 0.95% | | | | | | 1.45% | | | | | | 0.04% | | | | | | 0.72% | | | | | | 0.70% | | |
Tangible common equity/Tangible assets
|
| | | | 9.44% | | | | | | 11.34% | | | | | | 7.25% | | | | | | 9.47% | | | | | | 9.41% | | |
Leverage ratio(3)
|
| | | | 9.69% | | | | | | 13.04% | | | | | | 8.66% | | | | | | 10.63% | | | | | | 10.69% | | |
Total risk-based capital ratio(3)
|
| | | | 15.63% | | | | | | 16.34% | | | | | | 11.78% | | | | | | 13.78% | | | | | | 13.41% | | |
Holding Company CRE/Total risk-based capital(4)(5)
|
| | | | 286.4% | | | | | | 434.9% | | | | | | 101.7% | | | | | | 255.8% | | | | | | 246.4% | | |
LTM Return on average assets
|
| | | | 0.55% | | | | | | 1.06% | | | | | | 0.57% | | | | | | 0.80% | | | | | | 0.82% | | |
LTM Return on average equity
|
| | | | 6.04% | | | | | | 12.51% | | | | | | 5.85% | | | | | | 8.19% | | | | | | 8.09% | | |
LTM Net interest margin
|
| | | | 3.80% | | | | | | 4.16% | | | | | | 3.39% | | | | | | 3.69% | | | | | | 3.65% | | |
LTM Efficiency ratio
|
| | | | 78.4% | | | | | | 82.7% | | | | | | 51.6% | | | | | | 68.1% | | | | | | 69.3% | | |
Price/Tangible book value
|
| | | | 144% | | | | | | 195% | | | | | | 122% | | | | | | 153% | | | | | | 151% | | |
Price/LTM Earnings per share
|
| | | | 24.6x | | | | | | 26.2x | | | | | | 11.0x | | | | | | 19.4x | | | | | | 19.4x | | |
Price/2017 Estimated Earnings per share(6)
|
| | | | NA | | | | | | 20.0x | | | | | | 15.7x | | | | | | 18.4x | | | | | | 19.5x | | |
Dividend Yield
|
| | | | 0.3% | | | | | | 2.6% | | | | | | 0.0% | | | | | | 0.9% | | | | | | 1.0% | | |
Market value (in millions)
|
| | | $ | 100 | | | | | $ | 212 | | | | | $ | 65 | | | | | $ | 119 | | | | | $ | 91 | | |
| BancorpSouth, Inc. | | | WesBanco, Inc. | |
| United Bankshares, Inc. | | | FCB Financial Holdings, Inc. | |
| Trustmark Corporation | | | Renasant Corporation | |
| Pinnacle Financial Partners, Inc. | | | Union Bankshares Corporation | |
| South State Corporation | | | Simmons First National Corporation | |
| Home BancShares, Inc. | | | TowneBank | |
| | | | | | | | |
United Peer Group
|
| |||||||||||||||||||||
| | |
United
|
| |
High
|
| |
Low
|
| |
Mean
|
| |
Median
|
| |||||||||||||||
Total assets (in millions)
|
| | | $ | 10,732 | | | | | $ | 14,866 | | | | | $ | 8,175 | | | | | $ | 10,857 | | | | | $ | 10,259 | | |
Loans/Deposits
|
| | | | 79.6% | | | | | | 103.1% | | | | | | 81.4% | | | | | | 91.1% | | | | | | 89.9% | | |
Nonperforming assets(1)/Total assets
|
| | | | 0.84% | | | | | | 1.41% | | | | | | 0.33% | | | | | | 0.69% | | | | | | 0.67% | | |
Tangible common equity/Tangible assets
|
| | | | 8.95% | | | | | | 10.37% | | | | | | 8.34% | | | | | | 9.38% | | | | | | 9.43% | | |
Leverage ratio
|
| | | | 8.63% | | | | | | 12.05% | | | | | | 9.79% | | | | | | 10.43% | | | | | | 10.37% | | |
Total risk-based capital ratio
|
| | | | 12.25% | | | | | | 15.11% | | | | | | 12.62% | | | | | | 13.68% | | | | | | 13.46% | | |
Holding Company CRE/Total risk based capital(2)
|
| | | | 201.7% | | | | | | 339.7% | | | | | | 183.3% | | | | | | 239.9% | | | | | | 222.5% | | |
LTM Return on average assets
|
| | | | 0.99% | | | | | | 1.87% | | | | | | 0.86% | | | | | | 1.15% | | | | | | 1.06% | | |
LTM Return on average equity
|
| | | | 9.49% | | | | | | 14.06% | | | | | | 7.06% | | | | | | 8.82% | | | | | | 8.00% | | |
LTM Net interest margin
|
| | | | 3.36% | | | | | | 4.77% | | | | | | 3.36% | | | | | | 3.77% | | | | | | 3.54% | | |
LTM Efficiency ratio
|
| | | | 56.4% | | | | | | 67.7% | | | | | | 36.4% | | | | | | 56.3% | | | | | | 59.5% | | |
Price/Tangible book value
|
| | | | 199% | | | | | | 348% | | | | | | 185% | | | | | | 233% | | | | | | 223% | | |
Price/LTM Earnings per share
|
| | | | 18.6x | | | | | | 24.9x | | | | | | 16.6x | | | | | | 19.4x | | | | | | 18.7x | | |
Price/2017 Estimated Earnings per share(3)
|
| | | | 16.3x | | | | | | 18.7x | | | | | | 15.2x | | | | | | 17.4x | | | | | | 17.8x | | |
Price/2018 Estimated Earnings per share(3)
|
| | | | 14.6x | | | | | | 16.9x | | | | | | 12.5x | | | | | | 15.1x | | | | | | 15.2x | | |
Dividend Yield
|
| | | | 1.4% | | | | | | 3.4% | | | | | | 0.0% | | | | | | 1.9% | | | | | | 1.8% | | |
Market value (in millions)
|
| | | $ | 1,880 | | | | | $ | 4,740 | | | | | $ | 1,434 | | | | | $ | 2,499 | | | | | $ | 2,045 | | |
|
Acquiror
|
| |
Target
|
|
| Carolina Financial Corporation | | | First South Bancorp, Inc. | |
| SmartFinancial, Inc. | | | Capstone Bancshares, Inc. | |
| First Bancorp | | | ASB Bancorp, Inc. | |
| Renasant Corporation | | | Metropolitan BancGroup, Inc. | |
| CenterState Banks, Inc. | | | Gateway Financial Holdings of Florida, Inc. | |
| CenterState Banks, Inc. | | | Platinum Bank Holding Company | |
| Hampton Roads Bankshares, Inc. | | | Xenith Bankshares, Inc. | |
| Pinnacle Financial Partners, Inc. | | | Avenue Financial Holdings, Inc. | |
| TowneBank | | | Monarch Financial Holdings, Inc. | |
| Park Sterling Corporation | | | First Capital Bancorp, Inc. | |
| Pinnacle Financial Partners, Inc. | | | CapitalMark Bank & Trust | |
| Atlantic Capital Bancshares, Inc. | | | First Security Group, Inc. | |
| | | | | | | | |
Precedent Transactions
|
| |||||||||||||||||||||
| | |
United/
Four Oaks(1) |
| |
High
|
| |
Low
|
| |
Mean
|
| |
Median
|
| |||||||||||||||
Transaction price/LTM Earnings per share
|
| | | | 30.4x | | | | | | 29.0x | | | | | | 17.3x | | | | | | 22.8x | | | | | | 23.1x | | |
Transaction price/Tangible book value per share
|
| | | | 178% | | | | | | 232% | | | | | | 117% | | | | | | 179% | | | | | | 176% | | |
Core deposit premium
|
| | | | 12.0% | | | | | | 16.1% | | | | | | 2.8% | | | | | | 10.8% | | | | | | 10.4% | | |
1-Day market premium
|
| | | | 23.5% | | | | | | 52.7% | | | | | | 11.9% | | | | | | 28.7% | | | | | | 20.0% | | |
Discount Rate
|
| |
17.0x
|
| |
18.5x
|
| |
20.0x
|
| |
21.5x
|
| |
23.0x
|
| |||||||||||||||
10.0% | | | | $ | 13.01 | | | | | $ | 14.12 | | | | | $ | 15.22 | | | | | $ | 16.32 | | | | | $ | 17.43 | | |
11.0% | | | | $ | 12.58 | | | | | $ | 13.65 | | | | | $ | 14.72 | | | | | $ | 15.78 | | | | | $ | 16.85 | | |
12.0% | | | | $ | 12.17 | | | | | $ | 13.20 | | | | | $ | 14.24 | | | | | $ | 15.27 | | | | | $ | 16.30 | | |
12.7% | | | | $ | 11.89 | | | | | $ | 12.90 | | | | | $ | 13.91 | | | | | $ | 14.92 | | | | | $ | 15.92 | | |
14.0% | | | | $ | 11.40 | | | | | $ | 12.36 | | | | | $ | 13.33 | | | | | $ | 14.30 | | | | | $ | 15.26 | | |
Discount Rate
|
| |
120%
|
| |
140%
|
| |
160%
|
| |
180%
|
| |
190%
|
| |||||||||||||||
10.0% | | | | $ | 11.25 | | | | | $ | 13.05 | | | | | $ | 14.84 | | | | | $ | 16.63 | | | | | $ | 17.53 | | |
11.0% | | | | $ | 10.88 | | | | | $ | 12.62 | | | | | $ | 14.35 | | | | | $ | 16.08 | | | | | $ | 16.95 | | |
12.0% | | | | $ | 10.53 | | | | | $ | 12.20 | | | | | $ | 13.88 | | | | | $ | 15.55 | | | | | $ | 16.39 | | |
12.7% | | | | $ | 10.29 | | | | | $ | 11.92 | | | | | $ | 13.56 | | | | | $ | 15.20 | | | | | $ | 16.01 | | |
14.0% | | | | $ | 9.86 | | | | | $ | 11.43 | | | | | $ | 13.00 | | | | | $ | 14.56 | | | | | $ | 15.35 | | |
Annual Estimate Variance
|
| |
17.0x
|
| |
18.5x
|
| |
20.0x
|
| |
21.5x
|
| |
23.0x
|
| |||||||||||||||
(20.0%) | | | | $ | 9.61 | | | | | $ | 10.41 | | | | | $ | 11.22 | | | | | $ | 12.03 | | | | | $ | 12.83 | | |
(10.0%) | | | | $ | 10.75 | | | | | $ | 11.66 | | | | | $ | 12.56 | | | | | $ | 13.47 | | | | | $ | 14.38 | | |
(5.0%) | | | | $ | 11.32 | | | | | $ | 12.28 | | | | | $ | 13.24 | | | | | $ | 14.19 | | | | | $ | 15.15 | | |
0.0% | | | | $ | 11.89 | | | | | $ | 12.90 | | | | | $ | 13.91 | | | | | $ | 14.92 | | | | | $ | 15.92 | | |
5.0% | | | | $ | 12.46 | | | | | $ | 13.52 | | | | | $ | 14.58 | | | | | $ | 15.64 | | | | | $ | 16.70 | | |
10.0% | | | | $ | 13.03 | | | | | $ | 14.14 | | | | | $ | 15.25 | | | | | $ | 16.36 | | | | | $ | 17.47 | | |
20.0% | | | | $ | 14.18 | | | | | $ | 15.39 | | | | | $ | 16.60 | | | | | $ | 17.81 | | | | | $ | 19.01 | | |
Discount Rate
|
| |
17.0x
|
| |
18.0x
|
| |
19.0x
|
| |
20.0x
|
| |
21.0x
|
| |
22.0x
|
| ||||||||||||||||||
8.0% | | | | $ | 27.10 | | | | | $ | 28.61 | | | | | $ | 30.13 | | | | | $ | 31.65 | | | | | $ | 33.16 | | | | | $ | 34.68 | | |
8.8% | | | | $ | 26.39 | | | | | $ | 27.86 | | | | | $ | 29.34 | | | | | $ | 30.81 | | | | | $ | 32.29 | | | | | $ | 33.76 | | |
9.0% | | | | $ | 26.19 | | | | | $ | 27.66 | | | | | $ | 29.12 | | | | | $ | 30.59 | | | | | $ | 32.05 | | | | | $ | 33.52 | | |
10.0% | | | | $ | 25.33 | | | | | $ | 26.74 | | | | | $ | 28.16 | | | | | $ | 29.57 | | | | | $ | 30.99 | | | | | $ | 32.41 | | |
11.0% | | | | $ | 24.50 | | | | | $ | 25.87 | | | | | $ | 27.23 | | | | | $ | 28.60 | | | | | $ | 29.97 | | | | | $ | 31.34 | | |
12.0% | | | | $ | 23.70 | | | | | $ | 25.03 | | | | | $ | 26.35 | | | | | $ | 27.67 | | | | | $ | 29.00 | | | | | $ | 30.32 | | |
13.0% | | | | $ | 22.94 | | | | | $ | 24.22 | | | | | $ | 25.50 | | | | | $ | 26.78 | | | | | $ | 28.06 | | | | | $ | 29.34 | | |
Discount Rate
|
| |
190%
|
| |
210%
|
| |
230%
|
| |
250%
|
| |
270%
|
| |
280%
|
| ||||||||||||||||||
8.0% | | | | $ | 28.31 | | | | | $ | 31.15 | | | | | $ | 34.00 | | | | | $ | 36.84 | | | | | $ | 39.68 | | | | | $ | 41.10 | | |
8.8% | | | | $ | 27.57 | | | | | $ | 30.33 | | | | | $ | 33.10 | | | | | $ | 35.87 | | | | | $ | 38.63 | | | | | $ | 40.01 | | |
9.0% | | | | $ | 27.37 | | | | | $ | 30.11 | | | | | $ | 32.86 | | | | | $ | 35.60 | | | | | $ | 38.35 | | | | | $ | 39.72 | | |
10.0% | | | | $ | 26.46 | | | | | $ | 29.11 | | | | | $ | 31.77 | | | | | $ | 34.42 | | | | | $ | 37.07 | | | | | $ | 38.40 | | |
11.0% | | | | $ | 25.59 | | | | | $ | 28.16 | | | | | $ | 30.72 | | | | | $ | 33.29 | | | | | $ | 35.85 | | | | | $ | 37.13 | | |
12.0% | | | | $ | 24.76 | | | | | $ | 27.24 | | | | | $ | 29.72 | | | | | $ | 32.20 | | | | | $ | 34.68 | | | | | $ | 35.92 | | |
13.0% | | | | $ | 23.97 | | | | | $ | 26.36 | | | | | $ | 28.76 | | | | | $ | 31.16 | | | | | $ | 33.56 | | | | | $ | 34.76 | | |
Annual Estimate Variance
|
| |
17.0x
|
| |
18.0x
|
| |
19.0x
|
| |
20.0x
|
| |
21.0x
|
| |
22.0x
|
| ||||||||||||||||||
(15.0%) | | | | $ | 22.62 | | | | | $ | 23.88 | | | | | $ | 25.13 | | | | | $ | 26.39 | | | | | $ | 27.64 | | | | | $ | 28.89 | | |
(10.0%) | | | | $ | 23.88 | | | | | $ | 25.20 | | | | | $ | 26.53 | | | | | $ | 27.86 | | | | | $ | 29.19 | | | | | $ | 30.52 | | |
(5.0%) | | | | $ | 25.13 | | | | | $ | 26.53 | | | | | $ | 27.94 | | | | | $ | 29.34 | | | | | $ | 30.74 | | | | | $ | 32.14 | | |
0.0% | | | | $ | 26.39 | | | | | $ | 27.86 | | | | | $ | 29.34 | | | | | $ | 30.81 | | | | | $ | 32.29 | | | | | $ | 33.76 | | |
5.0% | | | | $ | 27.64 | | | | | $ | 29.19 | | | | | $ | 30.74 | | | | | $ | 32.29 | | | | | $ | 33.84 | | | | | $ | 35.39 | | |
10.0% | | | | $ | 28.89 | | | | | $ | 30.52 | | | | | $ | 32.14 | | | | | $ | 33.76 | | | | | $ | 35.39 | | | | | $ | 37.01 | | |
15.0% | | | | $ | 30.15 | | | | | $ | 31.85 | | | | | $ | 33.54 | | | | | $ | 35.24 | | | | | $ | 36.94 | | | | | $ | 38.64 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||||||||
| | |
2017
|
| |
2018
|
| |
2019
|
| |
2020
|
| ||||||||||||
| | |
($ in millions, except earnings per share)
|
| |||||||||||||||||||||
Income Statement | | | | | | ||||||||||||||||||||
Net Income
|
| | | $ | 4,340 | | | | | $ | 5,177 | | | | | $ | 6,138 | | | | | $ | 7,130 | | |
Per Share Data | | | | | | ||||||||||||||||||||
Earnings Per Share
|
| | | $ | 0.64 | | | | | $ | 0.76 | | | | | $ | 0.91 | | | | | $ | 1.05 | | |
Tangible Book Value Per Share
|
| | | $ | 10.69 | | | | | $ | 11.31 | | | | | $ | 12.00 | | | | | $ | 12.81 | | |
Dividends Per Share
|
| | | $ | 0.05 | | | | | $ | 0.14 | | | | | $ | 0.22 | | | | | $ | 0.24 | | |
Name
|
| |
Value of Stock
Option Awards ($)(1) |
| |
Value of Restricted
Stock Awards ($)(2) |
| ||||||
Directors | | | | ||||||||||
Paula Canaday Bowman(3)
|
| | | $ | 2,379 | | | | | | — | | |
Warren L. Grimes
|
| | | | — | | | | | $ | 80,835 | | |
Ayden R. Lee, Jr.
|
| | | | — | | | | | $ | 646,680 | | |
Kenneth Lehman
|
| | | | — | | | | | | — | | |
Robert G. Rabon
|
| | | | — | | | | | $ | 80,835 | | |
Dr. R. Max Raynor, Jr.
|
| | | | — | | | | | $ | 80,835 | | |
Michael A. Weeks
|
| | | | — | | | | | $ | 80,835 | | |
Executive Officers | | | | ||||||||||
David H. Rupp
|
| | | | — | | | | | $ | 798,840 | | |
Jeff D. Pope
|
| | | | — | | | | | $ | 399,420 | | |
Lisa S. Herring
|
| | | | — | | | | | $ | 399,420 | | |
Deanna W. Hart
|
| | | | — | | | | | $ | 334,751 | | |
Warren D. Herring, Jr.
|
| | | | — | | | | | $ | 334,752 | | |
Lawrence F. DesPrés
|
| | | | — | | | | | $ | 304,320 | | |
W. Leon Hiatt, III(4)
|
| | | | — | | | | | | — | | |
Name
|
| |
Cash
($)(1) |
| |
Equity
($)(2) |
| |
Pension/
NQDC ($) |
| |
Perquisites/
Benefits ($)(3) |
| |
Tax
Reimbursement ($) |
| |
Other
($) |
| |
Total
($)(4) |
| |||||||||||||||||||||
David H. Rupp
|
| | | $ | 698,428 | | | | | $ | 798,840 | | | | | | — | | | | | $ | 14,195 | | | | | | — | | | | | | — | | | | | $ | 1,505,463 | | |
Jeff D. Pope
|
| | | $ | 526,000 | | | | | $ | 399,420 | | | | | | — | | | | | $ | 12,207 | | | | | | — | | | | | | — | | | | | $ | 937,627 | | |
Lisa S. Herring
|
| | | $ | 526,472 | | | | | $ | 399,420 | | | | | | — | | | | | $ | 12,207 | | | | | | — | | | | | | — | | | | | $ | 938,099 | | |
W. Leon Hiatt, III(5)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Executive Officer
|
| |
Single-Trigger
($) |
| |
Double-Trigger
($) |
| ||||||
David H. Rupp
|
| | | $ | 798,840 | | | | | $ | 706,623 | | |
Jeff D. Pope
|
| | | $ | 399,420 | | | | | $ | 538,207 | | |
Lisa S. Herring
|
| | | $ | 399,420 | | | | | $ | 538,679 | | |
W. Leon Hiatt, III
|
| | | | — | | | | | | — | | |
| | |
Four Oaks Shareholder Rights
|
| |
United Shareholder Rights
|
|
Authorized, Issued
and Outstanding Capital Stock |
| | The authorized capital stock of Four Oaks currently consists of 16,000,000 shares of common stock, $1.00 par value per share, and 50,000 shares of preferred stock, $1.00 par value per share. As of [•], 2017, [•] shares of common stock were issued and outstanding, and no shares of preferred stock were issued and outstanding. | | | The authorized capital stock of United currently consists of 150,000,000 shares of common stock, $1.00 par value per share, 26,000,000 shares of non-voting common stock, $1.00 par value per share, and 10,000,000 shares of preferred stock, $1.00 par value per share. As of [•], 2017, [•] shares of common stock were issued and outstanding, no shares of non-voting common stock were issued and outstanding and no shares of preferred stock were issued and outstanding. | |
Shareholder Ability to Call Special Meetings
|
| | The bylaws of Four Oaks provide that special meetings may be called by the Chief Executive Officer, the President, the Secretary or the Board of Directors, and by the holders of at least 25% of all the votes entitled to be cast on any issue proposed to be considered at such special meeting. | | | The bylaws of United provide that special meetings may be called by the Board of Directors, the Chairman of the Board of Directors, the Chief Executive Officer, the President or the Chief Financial Officer, and by the holders of at least 25% of the shares entitled to vote on the matter considered at the special meeting. | |
Advance Notice Requirements for Shareholder Proposals
|
| | Four Oaks’ articles of incorporation and bylaws do not contain advance notice provisions with respect to shareholder proposals. | | | The bylaws of United provide that for business to be brought properly before an annual meeting by a shareholder, the stockholder must have given timely notice of the business in writing to the Secretary. To be timely, the notice must be delivered or mailed to and received at the principal offices of United on or before the later to occur of (i) 14 days prior to the annual meeting or (ii) five days after notice of the meeting is provided to the shareholders. A shareholder’s notice must set forth (i) a | |
| | |
Four Oaks Shareholder Rights
|
| |
United Shareholder Rights
|
|
| | | | | | brief description of each matter of business the shareholder proposes to bring before the meeting and the reasons for conducting that business at the meeting; (ii) the name, as it appears on United’s books, and address of the shareholder proposing the business; (iii) the series or class and number of shares of United’s capital stock that are beneficially owned by the shareholder; and (iv) any material interest of the shareholder in the proposed business. United shareholders do not have the ability to submit a proposal for a special meeting of shareholders. | |
Number of Directors
|
| | The bylaws of Four Oaks provide that the number of directors on Four Oaks’ Board of Directors may range from five to 21. Four Oaks’ Board of Directors currently has seven directors. | | | The bylaws of United provide that the number of directors on United’s Board of Directors may range from eight to 14. The number of directors may be increased or decreased from time to time by the Board of Directors by resolution, but no decrease shall have the effect of shortening the term of an incumbent director. United’s Board of Directors currently has nine directors. | |
Removal of Directors
|
| | The bylaws of Four Oaks provide that directors may be removed with or without cause, but only if the number of votes cast to remove a director exceeds the number of votes cast not to remove such director. | | | The articles of incorporation of United provide that directors may be removed only for cause and only upon the affirmative vote of the holders of two-thirds of the issued and outstanding shares entitled to vote on the removal. | |
Approval of Business Transactions
|
| | Four Oaks’ articles of incorporation provide that, with regard to any business combination between Four Oaks and any other corporation, person, or other entity, such business combination must be approved only as follows unless otherwise more restrictively required by applicable North Carolina law: (i) at a special or annual meeting of shareholders by an affirmative vote of the shareholders holding at least a majority of the shares of Four Oaks issued and outstanding and entitled to vote thereon provided that such business combination has received the prior approval by resolution adopted by an affirmative vote of at least 80% of the full Board of Directors before such business combination is submitted for | | | Neither the articles of incorporation nor bylaws of United require any supermajority approval of business transactions generally. The articles of incorporation of United provide that in order to engage in a merger, consolidation, sale or transfer or disposition of all or substantially all of the assets of United, sale of $1 million or more in securities, a plan of liquidation, or any other transaction with any holder of 10% or more of the issued and outstanding shares of United that would increase the percentage ownership of such shareholder, such transaction must be approved by either a resolution adopted by at least three-fourths of the directors then in office, or the affirmative vote of the holders of at least 75% of the | |
| | |
Four Oaks Shareholder Rights
|
| |
United Shareholder Rights
|
|
| | | approval to the shareholders; or (ii) at a special or annual meeting of shareholders by affirmative vote of the shareholders holding at least 80% of the shares of Four Oaks issued and outstanding and entitled to vote thereon provided that such business combination has not received the prior approval by resolution adopted by an affirmative vote of at least 80% of the full Board of Directors, but has received the prior approval by resolution adopted by an affirmative vote of a majority of a quorum of the Board of Directors, and further provided that such business combination as approved grants to shareholders not voting to approve the business combination the right to sell his shares for cash to Four Oaks at their “fair price.” | | | outstanding shares of common stock of United and the separate affirmative vote of at least 75% of the outstanding shares of common stock, excluding those shares held by such shareholder. | |
Shareholder Action Without Meeting
|
| | The bylaws of Four Oaks provide that any action which may be taken at a meeting of shareholders may be taken without a meeting if a consent in writing, setting forth the action so taken, is signed by all of the persons who would be entitled to vote upon such action at a meeting and is delivered to Four Oaks to be included in the minutes or to be kept as part of the corporate records. | | | The bylaws of United provide that any action required or permitted to be taken at a meeting of shareholders may be taken without a meeting if a written consent (or consents) has been signed by the holders of outstanding United stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted. Prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent must be given to those shareholders who have not consented in writing. | |
Exclusive Forum
|
| | The bylaws of Four Oaks provide that the state courts of North Carolina in and for Wake County, North Carolina (subject to designation or assignment to the North Carolina Business Court) or, if such court lacks jurisdiction, the United States District Court for the Eastern District of North Carolina, shall, to the fullest extent permitted by law, be the sole and exclusive forum for certain legal proceedings. | | | The bylaws of United provide that the United States District Court for the Northern District of Georgia or, if such court lacks jurisdiction, any Georgia state court that has jurisdiction, shall, to the fullest extent permitted by law, be the sole and exclusive forum for certain legal proceedings. | |
| | |
Four Oaks Shareholder Rights
|
| |
United Shareholder Rights
|
|
Amendments to Articles of Incorporation and Bylaws
|
| | Four Oaks’ articles of incorporation specifically provide that an amendment to the articles of incorporation shall be adopted only upon receiving the affirmative vote of the holders of at least 80% of all the shares of Four Oaks common stock issued and outstanding and entitled to vote thereon; provided, however, that if such amendment shall have received prior approval by resolution adopted by an affirmative vote of a majority of disinterested directors (as defined in the articles of incorporation), then the affirmative vote of the holders of at least a majority of all the shares of Four Oaks common stock issued and outstanding and entitled to vote, or such greater percentage approval as required by North Carolina law, shall be sufficient to amend the articles of incorporation. Four Oaks’ bylaws generally provide that Four Oaks’ Board of Directors may amend or repeal the bylaws, except to the extent otherwise provided in the articles of incorporation, a bylaw adopted by the shareholders, or the NCBCA, and except that a bylaw adopted, amended, or repealed by the shareholders may not be readopted, amended or repealed by Four Oaks’ Board of Directors if neither the articles of incorporation nor a bylaw adopted by the shareholders authorizes the Four Oaks Board of Directors to adopt, amend or repeal that particular bylaw or the bylaws generally. | | | United’s articles of incorporation specifically provide that any amendment or repeal of any provision of the articles of incorporation or Article II (Stockholders’ Meetings) or Article III (Board of Directors) of the bylaws requires the affirmative vote of holders of a majority of the shares of United’s capital stock then issued and outstanding and entitled to vote on such matters. United’s bylaws provide that United’s Board of Directors may alter, amend or repeal United’s bylaws or adopt new bylaws, subject to the voting requirement included in United’s articles of incorporation. Any bylaws adopted by United’s Board of Directors may be altered, amended or repealed, and new bylaws adopted, by the shareholders of United. | |
|
Deposit Accounts
|
| |
Loan Products
|
| |
Wealth Management
|
| |
Delivery Channels
|
| |
Commercial Services
|
| |
Other Services
|
|
|
✓
Checking
|
| |
✓
Mortgage
|
| |
✓
Financial Planning Services
|
| |
✓
Internet Banking
|
| |
✓
Remote Deposit Capture
|
| |
✓
Cashier’s Checks
|
|
|
✓
Savings
|
| |
✓
Equity Line of Credit
|
| |
✓
Wealth Management Services
|
| |
✓
Telephone Banking
|
| |
✓
Remote Check Capture
|
| |
✓
Gift Cards
|
|
|
✓
Money Market
|
| |
✓
Agriculture
|
| |
✓
Investment Services
|
| |
✓
Mobile Banking
|
| |
✓
Debit Cards
|
| |
✓
Safe Deposit Box
|
|
|
✓
Certificates of Deposit (CD)
|
| |
✓
Commercial/ Business
|
| |
✓
Individual Retirement Account (IRA)
|
| |
✓
Night Depository
|
| |
✓
Automated Clearing House (ACH) Origination
|
| |
✓
Wire Services
|
|
|
✓
Christmas Club
|
| |
✓
Real Estate
|
| |
✓
Life Insurance
|
| | | | | | | |
✓
Notary Services
|
|
|
✓
Overdraft Lines
|
| |
✓
Home Improvement
|
| |
✓
Long Term Care
|
| | | | |
✓
Prepaid and Payroll Cards
|
| | ||
|
✓
E-Statements
|
| |
✓
Construction
|
| |
✓
Annuities
|
| | | | |
✓
Merchant Processing
|
| | ||
|
✓
Mobile Check Capture
|
| |
✓
Consumer
|
| | | | | ||||||||
| | | |
✓
Credit Cards
|
| | | | |
| | |
2016
|
| |
2015
|
| ||||||
| | |
(in thousands, except ratios)
|
| |||||||||
Net income
|
| | | $ | 6,858 | | | | | $ | 20,008 | | |
Average equity capital accounts
|
| | | $ | 63,879 | | | | | $ | 51,830 | | |
Ratio of net income to average equity capital accounts
|
| | | | 10.7% | | | | | | 38.6% | | |
Average daily total deposits
|
| | | $ | 552,015 | | | | | $ | 570,759 | | |
Ratio of net income to average daily total deposits
|
| | | | 1.2% | | | | | | 3.5% | | |
Average daily loans
|
| | | $ | 483,741 | | | | | $ | 458,679 | | |
Ratio of average daily loans to average daily total deposits
|
| | | | 87.6% | | | | | | 80.4% | | |
Location
|
| |
Year Built/
Acquired |
| |
Present Function
|
| |
Square Feet
|
| ||||||
102 East Main Street Clayton, North Carolina |
| | | | 1986 | | | | Branch Office | | | | | 4,900 | | |
200 East Church Street Benson, North Carolina |
| | | | 1987 | | | | Branch Office | | | | | 2,300 | | |
128 North Second Street Smithfield, North Carolina |
| | | | 1991 | | | | Branch Office | | | | | 5,500 | | |
403 South Brightleaf Boulevard Smithfield, North Carolina |
| | | | 1995 | | | |
Limited-Service Facility
|
| | | | 860 | | |
200 Glen Road Garner, North Carolina |
| | | | 1996 | | | | Branch Office | | | | | 3,500 | | |
325 North Judd Parkway Northeast Fuquay-Varina, North Carolina |
| | | | 2002 | | | | Branch Office | | | | | 8,900 | | |
406 East Main Street Wallace, North Carolina |
| | | | 2006 | | | | Branch Office | | | | | 9,300 | | |
805 N. Arendell Avenue Zebulon, North Carolina |
| | | | 2007 | | | | Branch Office | | | | | 6,100 | | |
105 Commerce Avenue Southern Pines, North Carolina |
| | | | 2005 | | | | Vacant | | | | | 4,100 | | |
115 Four Oaks Place Dunn, North Carolina |
| | | | 2016 | | | | Branch Office | | | | | 3,994 | | |
Location
|
| |
Present Function
|
|
201 West Center Street Holly Springs, North Carolina |
| | Branch Office | |
590 Tomahawk Highway Harrells, North Carolina |
| | Branch Office | |
1408 Garner Station Boulevard Raleigh, North Carolina |
| | Branch Office | |
5909 Falls of Neuse Raleigh, North Carolina |
| |
Loan Production Office
|
|
1091 Investment Boulevard Apex, North Carolina |
| |
Loan Production Office
|
|
| | |
Fiscal Year Ended December 31,
|
| |||||||||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |||||||||||||||||||||||||||
| | |
High
|
| |
Low
|
| |
High
|
| |
Low
|
| |
High
|
| |
Low
|
| ||||||||||||||||||
First quarter
|
| | | $ | 18.25 | | | | | $ | 13.10 | | | | | $ | 9.60 | | | | | $ | 8.75 | | | | | $ | 8.60 | | | | | $ | 7.00 | | |
Second quarter
|
| | | $ | 18.64 | | | | | $ | 13.01 | | | | | $ | 10.75 | | | | | $ | 9.25 | | | | | $ | 8.35 | | | | | $ | 7.10 | | |
Third quarter (through [•], 2017)
|
| | | $ | [•] | | | | | $ | [•] | | | | | $ | 11.85 | | | | | $ | 10.25 | | | | | $ | 9.40 | | | | | $ | 7.60 | | |
Fourth quarter
|
| | | | — | | | | | | — | | | | | $ | 14.40 | | | | | $ | 11.05 | | | | | $ | 9.15 | | | | | $ | 8.00 | | |
| | |
As of and for the Year Ended December 31,
|
| |||||||||||||||
Performance Ratios:
|
| |
2016
|
| |
2015
|
| |
2014
|
| |||||||||
Return on average assets
|
| | | | 0.96% | | | | | | 2.70% | | | | | | (0.50)% | | |
Return on average equity
|
| | | | 10.74% | | | | | | 38.60% | | | | | | (13.09)% | | |
Dividend payout ratio
|
| | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | |
Average equity to average assets
|
| | | | 8.96% | | | | | | 7.00% | | | | | | 3.85% | | |
Earnings (Loss) per Common Share(1): | | | | | |||||||||||||||
Basic earnings per common share
|
| | | $ | 1.06 | | | | | $ | 3.12 | | | | | $ | (1.20) | | |
Diluted earnings per common share
|
| | | $ | 1.04 | | | | | $ | 3.10 | | | | | $ | (1.20) | | |
Book Value per Common Share(1): | | | | | |||||||||||||||
Book value per common share
|
| | | $ | 10.06 | | | | | $ | 8.99 | | | | | $ | 6.36 | | |
| | |
Available for Sale
|
| |||||||||||||||||||||||||||||||||
| | |
2016
|
| |
2015
|
| |
2014
|
| |||||||||||||||||||||||||||
| | |
Amortized
cost |
| |
Estimated
fair value |
| |
Amortized
cost |
| |
Estimated
fair value |
| |
Amortized
cost |
| |
Estimated
fair value |
| ||||||||||||||||||
Taxable Municipals
|
| | | $ | 19,846 | | | | | $ | 20,049 | | | | | $ | 24,789 | | | | | $ | 24,567 | | | | | $ | 16,412 | | | | | $ | 17,078 | | |
Mortgage-backed securities | | | | | | | | ||||||||||||||||||||||||||||||
GNMA
|
| | | | 11,704 | | | | | | 11,680 | | | | | | 13,512 | | | | | | 13,530 | | | | | | 16,204 | | | | | | 16,264 | | |
FNMA & FHLMC
|
| | | | 25,684 | | | | | | 25,412 | | | | | | 32,024 | | | | | | 31,673 | | | | | | 30,992 | | | | | | 30,858 | | |
Other debt securities
|
| | | | 1,000 | | | | | | 1,000 | | | | | | 500 | | | | | | 500 | | | | | | — | | | | | | — | | |
Equity securities
|
| | | | — | | | | | | — | | | | | | 11 | | | | | | 11 | | | | | | 11 | | | | | | 11 | | |
Total securities
|
| | | $ | 58,234 | | | | | $ | 58,141 | | | | | $ | 70,836 | | | | | $ | 70,281 | | | | | $ | 63,619 | | | | | $ | 64,211 | | |
Pledged securities
|
| | | | | | | | | $ | — | | | | | | | | | | | $ | 14,290 | | | | | | | | | | | $ | 20,618 | | |
|
| | |
Held to Maturity
|
| |||||||||||||||||||||||||||||||||
| | |
2016
|
| |
2015
|
| |
2014
|
| |||||||||||||||||||||||||||
| | |
Amortized
cost |
| |
Estimated
fair value |
| |
Amortized
cost |
| |
Estimated
fair value |
| |
Amortized
cost |
| |
Estimated
fair value |
| ||||||||||||||||||
Taxable Municipals
|
| | | $ | 3,380 | | | | | $ | 3,386 | | | | | $ | 3,531 | | | | | $ | 3,512 | | | | | $ | 3,584 | | | | | $ | 3,556 | | |
Mortgage-backed securities | | | | | | | | ||||||||||||||||||||||||||||||
GNMA
|
| | | | 45,968 | | | | | | 46,188 | | | | | | 59,185 | | | | | | 59,464 | | | | | | 74,482 | | | | | | 75,125 | | |
FNMA
|
| | | | 1,857 | | | | | | 1,878 | | | | | | 2,638 | | | | | | 2,657 | | | | | | 3,517 | | | | | | 3,561 | | |
Total securities
|
| | | $ | 51,205 | | | | | $ | 51,452 | | | | | $ | 65,354 | | | | | $ | 65,633 | | | | | $ | 81,583 | | | | | $ | 82,242 | | |
Pledged securities
|
| | | | | | | | | $ | 28,429 | | | | | | | | | | | $ | 47,031 | | | | | | | | | | | $ | 81,225 | | |
|
| | |
Available for Sale
Carrying Value |
| |||||||||||||||||||||||||||
| | |
Within
1 year |
| |
After 1 year
through 5 years |
| |
After 5
years through 10 years |
| |
After 10
years |
| |
Total
|
| |||||||||||||||
Taxable Municipals
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 20,049 | | | | | $ | 20,049 | | |
Mortgage-backed securities | | | | | | | |||||||||||||||||||||||||
GNMA
|
| | | | — | | | | | | — | | | | | | — | | | | | | 11,680 | | | | | | 11,680 | | |
FNMA & FHLMC
|
| | | | — | | | | | | — | | | | | | — | | | | | | 25,412 | | | | | | 25,412 | | |
Other debt securities
|
| | | | — | | | | | | — | | | | | | 1,000 | | | | | | — | | | | | | 1,000 | | |
Total securities
|
| | | $ | — | | | | | $ | — | | | | | $ | 1,000 | | | | | $ | 57,141 | | | | | $ | 58,141 | | |
|
| | |
Available-for-Sale
Weighted Average Yields |
| |||||||||||||||||||||||||||
| | |
Within
1 year |
| |
After 1 year
through 5 years |
| |
After 5
years through 10 years |
| |
After 10
years |
| |
Total
|
| |||||||||||||||
Taxable Municipals
|
| | | | —% | | | | | | —% | | | | | | —% | | | | | | 4.07% | | | | | | 4.07% | | |
Mortgage-backed securities | | | | | | | |||||||||||||||||||||||||
GNMA
|
| | | | —% | | | | | | —% | | | | | | —% | | | | | | 2.40% | | | | | | 2.40% | | |
FNMA & FHLMC
|
| | | | —% | | | | | | —% | | | | | | —% | | | | | | 1.60% | | | | | | 1.60% | | |
Other debt securities
|
| | | | —% | | | | | | —% | | | | | | 6.00% | | | | | | —% | | | | | | 6.00% | | |
Total weighted average yields
|
| | | | —% | | | | | | —% | | | | | | 6.00% | | | | | | 2.62% | | | | | | 2.68% | | |
|
| | |
Held to Maturity
Carrying Value |
| |||||||||||||||||||||||||||
| | |
Within
1 year |
| |
After 1 year
through 5 years |
| |
After 5
years through 10 years |
| |
After 10
years |
| |
Total
|
| |||||||||||||||
Taxable Municipals
|
| | | $ | 155 | | | | | $ | 2,700 | | | | | $ | 525 | | | | | $ | — | | | | | $ | 3,380 | | |
Mortgage-backed securities | | | | | | | |||||||||||||||||||||||||
GNMA
|
| | | | — | | | | | | — | | | | | | 5,231 | | | | | | 40,737 | | | | | | 45,968 | | |
FNMA
|
| | | | — | | | | | | — | | | | | | 1,857 | | | | | | — | | | | | | 1,857 | | |
Total securities
|
| | | $ | 155 | | | | | $ | 2,700 | | | | | $ | 7,613 | | | | | $ | 40,737 | | | | | $ | 51,205 | | |
|
| | |
Held to Maturity
Weighted Average Yields |
| |||||||||||||||||||||||||||
| | |
Within
1 year |
| |
After 1 year
through 5 years |
| |
After 5
years through 10 years |
| |
After 10
years |
| |
Total
|
| |||||||||||||||
Taxable Municipals
|
| | | | 2.46% | | | | | | 3.36% | | | | | | 3.90% | | | | | | —% | | | | | | 3.40% | | |
Mortgage-backed securities | | | | | | | |||||||||||||||||||||||||
GNMA
|
| | | | —% | | | | | | —% | | | | | | 2.61% | | | | | | 2.06% | | | | | | 2.12% | | |
FNMA
|
| | | | —% | | | | | | —% | | | | | | 1.75% | | | | | | —% | | | | | | 1.75% | | |
Total weighted average yields
|
| | | | 2.46% | | | | | | 3.36% | | | | | | 2.49% | | | | | | 2.06% | | | | | | 2.19% | | |
|
| | |
Loan Portfolio Classification
|
| |||||||||||||||||||||||||||
| | |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |
2012
|
| |||||||||||||||
Loans receivable: | | | | | | | |||||||||||||||||||||||||
Commercial and industrial
|
| | | $ | 21,742 | | | | | $ | 23,163 | | | | | $ | 24,286 | | | | | $ | 25,858 | | | | | $ | 28,377 | | |
Commercial construction and land development
|
| | | | 46,114 | | | | | | 50,510 | | | | | | 53,642 | | | | | | 66,253 | | | | | | 90,899 | | |
Commercial real estate
|
| | | | 253,086 | | | | | | 208,737 | | | | | | 200,510 | | | | | | 214,159 | | | | | | 181,194 | | |
Residential construction
|
| | | | 42,660 | | | | | | 36,618 | | | | | | 28,130 | | | | | | 28,697 | | | | | | 20,445 | | |
Residential mortgage
|
| | | | 132,971 | | | | | | 128,442 | | | | | | 135,022 | | | | | | 147,300 | | | | | | 165,009 | | |
Consumer
|
| | | | 6,896 | | | | | | 6,638 | | | | | | 7,248 | | | | | | 6,750 | | | | | | 7,399 | | |
Consumer credit cards
|
| | | | 2,114 | | | | | | 2,240 | | | | | | 2,276 | | | | | | 2,339 | | | | | | 2,265 | | |
Business credit cards
|
| | | | 1,235 | | | | | | 1,168 | | | | | | 1,251 | | | | | | 1,124 | | | | | | 1,186 | | |
Other
|
| | | | 502 | | | | | | 1,257 | | | | | | 499 | | | | | | 738 | | | | | | 1,278 | | |
| | | | | 507,320 | | | | | | 458,773 | | | | | | 452,864 | | | | | | 493,218 | | | | | | 498,052 | | |
Net deferred loan fees
|
| | | | (316) | | | | | | (460) | | | | | | (608) | | | | | | (506) | | | | | | (123) | | |
Net loans before allowance
|
| | | | 507,004 | | | | | | 458,313 | | | | | | 452,256 | | | | | | 492,712 | | | | | | 497,929 | | |
Allowance for loan losses
|
| | | | (9,647) | | | | | | (9,616) | | | | | | (9,377) | | | | | | (11,590) | | | | | | (16,549) | | |
Total net loans
|
| | | $ | 497,357 | | | | | $ | 448,697 | | | | | $ | 442,879 | | | | | $ | 481,122 | | | | | $ | 481,380 | | |
Loans held for sale
|
| | | $ | 206 | | | | | $ | 1,145 | | | | | $ | 2,882 | | | | | $ | — | | | | | $ | 19,297 | | |
Commitments and contingencies: | | | | | | | |||||||||||||||||||||||||
Commitments to make loans
|
| | | $ | 135,100 | | | | | $ | 139,577 | | | | | $ | 100,843 | | | | | $ | 66,341 | | | | | $ | 71,924 | | |
Standby letters of credit
|
| | | $ | 861 | | | | | $ | 671 | | | | | $ | 1,441 | | | | | $ | 991 | | | | | $ | 2,838 | | |
| | |
Loan Maturities
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Commercial
& Industrial |
| |
Commercial
Construction & Land Development |
| |
Commercial
Real Estate |
| |
Residential
Construction |
| |
Residential
Mortgage |
| |
Consumer
|
| |
Other
|
| |
Total
|
| ||||||||||||||||||||||||
Due within one year: | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
Fixed rate
|
| | | $ | 2,161 | | | | | $ | 6,857 | | | | | $ | 9,564 | | | | | $ | 3,249 | | | | | $ | 6,695 | | | | | $ | 2,916 | | | | | $ | 139 | | | | | $ | 31,581 | | |
Variable rate
|
| | | | 7,485 | | | | | | 9,821 | | | | | | 19,461 | | | | | | 38,043 | | | | | | 8,578 | | | | | | 65 | | | | | | 144 | | | | | | 83,597 | | |
Due after one year through five years:
|
| | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
Fixed rate
|
| | | | 7,769 | | | | | | 19,654 | | | | | | 134,810 | | | | | | 395 | | | | | | 44,969 | | | | | | 3,791 | | | | | | 51 | | | | | | 211,439 | | |
Variable rate
|
| | | | 445 | | | | | | 6,690 | | | | | | 19,043 | | | | | | 973 | | | | | | 16,885 | | | | | | 1 | | | | | | 168 | | | | | | 44,205 | | |
Due after five years: | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
Fixed rate
|
| | | | 3,298 | | | | | | 2,738 | | | | | | 64,141 | | | | | | — | | | | | | 15,903 | | | | | | 123 | | | | | | — | | | | | | 86,203 | | |
Variable rate
|
| | | | 584 | | | | | | 354 | | | | | | 6,067 | | | | | | — | | | | | | 39,941 | | | | | | — | | | | | | — | | | | | | 46,946 | | |
Total
|
| | | $ | 21,742 | | | | | $ | 46,114 | | | | | $ | 253,086 | | | | | $ | 42,660 | | | | | $ | 132,971 | | | | | $ | 6,896 | | | | | $ | 502 | | | | | $ | 503,971 | | |
|
| | |
Nonperforming Assets
|
| |||||||||||||||||||||||||||
| | |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |
2012
|
| |||||||||||||||
Nonaccrual loans: | | | | | | | |||||||||||||||||||||||||
Commercial and industrial
|
| | | $ | 36 | | | | | $ | 119 | | | | | $ | — | | | | | $ | 651 | | | | | $ | 664 | | |
Commercial construction and land development
|
| | | | 691 | | | | | | 1,626 | | | | | | 5,533 | | | | | | 9,536 | | | | | | 15,941 | | |
Commercial real estate
|
| | | | 2,153 | | | | | | 2,929 | | | | | | 983 | | | | | | 6,391 | | | | | | 9,091 | | |
Residential construction
|
| | | | — | | | | | | 721 | | | | | | — | | | | | | 695 | | | | | | 833 | | |
Residential mortgage
|
| | | | 1,444 | | | | | | 1,203 | | | | | | 1,271 | | | | | | 9,943 | | | | | | 9,408 | | |
Consumer
|
| | | | — | | | | | | — | | | | | | 472 | | | | | | 11 | | | | | | 33 | | |
Total nonaccrual loans
|
| | | $ | 4,324 | | | | | $ | 6,598 | | | | | $ | 8,259 | | | | | $ | 27,227 | | | | | $ | 35,970 | | |
Past due 90 days or more and still accruing: | | | | | | | |||||||||||||||||||||||||
Consumer credit cards
|
| | | $ | 19 | | | | | $ | 29 | | | | | $ | 14 | | | | | $ | 23 | | | | | $ | 32 | | |
Business credit cards
|
| | | | 21 | | | | | | 36 | | | | | | 3 | | | | | | — | | | | | | — | | |
Total past due 90 days and still accruing
|
| | | $ | 40 | | | | | $ | 65 | | | | | $ | 17 | | | | | $ | 23 | | | | | $ | 32 | | |
Foreclosed assets: | | | | | | | |||||||||||||||||||||||||
Commercial and industrial
|
| | | $ | 3 | | | | | $ | 3 | | | | | $ | 44 | | | | | $ | 44 | | | | | $ | 71 | | |
Commercial construction and land development
|
| | | | 988 | | | | | | 1,493 | | | | | | 2,613 | | | | | | 6,364 | | | | | | 8,363 | | |
Commercial real estate
|
| | | | 637 | | | | | | 82 | | | | | | 485 | | | | | | 1,077 | | | | | | 2,420 | | |
Residential construction
|
| | | | — | | | | | | 69 | | | | | | — | | | | | | 42 | | | | | | 602 | | |
Residential mortgage
|
| | | | 54 | | | | | | 113 | | | | | | 640 | | | | | | 975 | | | | | | 3,680 | | |
Total foreclosed assets
|
| | | $ | 1,682 | | | | | $ | 1,760 | | | | | $ | 3,782 | | | | | $ | 8,502 | | | | | $ | 15,136 | | |
Nonperforming loans held for sale
|
| | | $ | — | | | | | $ | — | | | | | $ | 1,865 | | | | | $ | — | | | | | $ | — | | |
Total nonperforming assets
|
| | | $ | 6,046 | | | | | $ | 8,423 | | | | | $ | 13,923 | | | | | $ | 35,752 | | | | | $ | 51,138 | | |
Nonperforming loans to gross loans
|
| | | | 0.85% | | | | | | 1.44% | | | | | | 1.83% | | | | | | 5.53% | | | | | | 7.22% | | |
Nonperforming assets to total assets
|
| | | | 0.84% | | | | | | 1.22% | | | | | | 1.70% | | | | | | 4.35% | | | | | | 5.91% | | |
Allowance coverage of nonperforming loans
|
| | | | 221.06% | | | | | | 144.32% | | | | | | 113.30% | | | | | | 42.53% | | | | | | 45.97% | | |
| | |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |
2012
|
| |||||||||||||||
Performing TDRs: | | | | | | | |||||||||||||||||||||||||
Commercial and industrial
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 37 | | | | | $ | 349 | | |
Commercial construction and land development
|
| | | | — | | | | | | 1,059 | | | | | | 1,336 | | | | | | 227 | | | | | | 3,484 | | |
Commercial real estate
|
| | | | 714 | | | | | | 1,028 | | | | | | 2,469 | | | | | | 4,447 | | | | | | 5,522 | | |
Residential mortgage
|
| | | | 474 | | | | | | 226 | | | | | | 950 | | | | | | 2,319 | | | | | | 3,945 | | |
Consumer
|
| | | | — | | | | | | — | | | | | | 4 | | | | | | — | | | | | | — | | |
Total performing TDRs
|
| | | $ | 1,188 | | | | | $ | 2,313 | | | | | $ | 4,759 | | | | | $ | 7,030 | | | | | $ | 13,300 | | |
|
| | |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |
2012
|
| |||||||||||||||
Nonperforming TDRs: | | | | | | | |||||||||||||||||||||||||
Commercial and industrial
|
| | | $ | 24 | | | | | $ | — | | | | | $ | — | | | | | $ | 301 | | | | | $ | 87 | | |
Commercial construction and land development
|
| | | | — | | | | | | 557 | | | | | | 2,776 | | | | | | 6,699 | | | | | | 10,659 | | |
Commercial real estate
|
| | | | 657 | | | | | | 574 | | | | | | 552 | | | | | | 4,204 | | | | | | 4,437 | | |
Residential mortgage
|
| | | | 121 | | | | | | — | | | | | | 54 | | | | | | 3,055 | | | | | | 3,113 | | |
Consumer
|
| | | | — | | | | | | — | | | | | | 467 | | | | | | 1 | | | | | | — | | |
Total nonperforming TDRs
|
| | | $ | 802 | | | | | $ | 1,131 | | | | | $ | 3,849 | | | | | $ | 14,260 | | | | | $ | 18,296 | | |
|
| | |
Allowance for Loan Losses
|
| |||||||||||||||||||||||||||
| | |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |
2012
|
| |||||||||||||||
Balance at beginning of period
|
| | | $ | 9,616 | | | | | $ | 9,377 | | | | | $ | 11,590 | | | | | $ | 16,549 | | | | | $ | 21,141 | | |
Charge-offs: | | | | | | | |||||||||||||||||||||||||
Commercial and industrial
|
| | | | 73 | | | | | | 74 | | | | | | 492 | | | | | | 411 | | | | | | 703 | | |
Commercial construction and land development
|
| | | | 229 | | | | | | 196 | | | | | | 3,106 | | | | | | 3,759 | | | | | | 7,929 | | |
Commercial real estate
|
| | | | 565 | | | | | | 578 | | | | | | 3,315 | | | | | | 2,220 | | | | | | 3,691 | | |
Residential construction
|
| | | | — | | | | | | 41 | | | | | | 171 | | | | | | 138 | | | | | | 103 | | |
Residential mortgage
|
| | | | 45 | | | | | | 713 | | | | | | 4,847 | | | | | | 1,559 | | | | | | 1,801 | | |
Consumer
|
| | | | 161 | | | | | | 210 | | | | | | 183 | | | | | | 271 | | | | | | 516 | | |
Other
|
| | | | 9 | | | | | | 69 | | | | | | — | | | | | | — | | | | | | — | | |
Total charge-offs
|
| | | | 1,082 | | | | | | 1,881 | | | | | | 12,114 | | | | | | 8,358 | | | | | | 14,743 | | |
Recoveries: | | | | | | | |||||||||||||||||||||||||
Commercial and industrial
|
| | | | 97 | | | | | | 234 | | | | | | 208 | | | | | | 514 | | | | | | 622 | | |
Commercial construction and land development
|
| | | | 788 | | | | | | 1,176 | | | | | | 397 | | | | | | 587 | | | | | | 1,176 | | |
Commercial real estate
|
| | | | 21 | | | | | | 393 | | | | | | 334 | | | | | | 1,506 | | | | | | 366 | | |
Residential construction
|
| | | | 21 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Residential mortgage
|
| | | | 70 | | | | | | 201 | | | | | | 866 | | | | | | 599 | | | | | | 458 | | |
Consumer
|
| | | | 113 | | | | | | 113 | | | | | | 120 | | | | | | 154 | | | | | | 148 | | |
Other
|
| | | | 3 | | | | | | 3 | | | | | | 23 | | | | | | 4 | | | | | | — | | |
Total recoveries
|
| | | | 1,113 | | | | | | 2,120 | | | | | | 1,948 | | | | | | 3,364 | | | | | | 2,770 | | |
Net recoveries (charge-offs)
|
| | | | 31 | | | | | | 239 | | | | | | (10,166) | | | | | | (4,994) | | | | | | (11,973) | | |
Provision for loan losses
|
| | | | — | | | | | | — | | | | | | 7,953 | | | | | | 35 | | | | | | 7,381 | | |
Balance at end of year
|
| | | $ | 9,647 | | | | | $ | 9,616 | | | | | $ | 9,377 | | | | | $ | 11,590 | | | | | $ | 16,549 | | |
Ratio of net charge-offs during the year to average gross loans outstanding during the year
|
| | | | —% | | | | | | —% | | | | | | 2.14% | | | | | | 1.01% | | | | | | 2.21% | | |
| | |
Allowance for Loan Losses by Loan Classification
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |
2012
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Amount
|
| |
% Total
Loans(1) |
| |
Amount
|
| |
% Total
Loans(1) |
| |
Amount
|
| |
% Total
Loans(1) |
| |
Amount
|
| |
% Total
Loans(1) |
| |
Amount
|
| |
% Total
Loans(1) |
| ||||||||||||||||||||||||||||||
Commercial and industrial
|
| | | $ | 58 | | | | | | 5% | | | | | $ | 221 | | | | | | 5% | | | | | $ | 119 | | | | | | 6% | | | | | $ | 487 | | | | | | 6% | | | | | $ | 1,185 | | | | | | 6% | | |
Commercial construction and land development
|
| | | | 4,915 | | | | | | 9% | | | | | | 5,470 | | | | | | 11% | | | | | | 5,105 | | | | | | 12% | | | | | | 5,037 | | | | | | 13% | | | | | | 7,251 | | | | | | 18% | | |
Commercial real estate
|
| | | | 3,198 | | | | | | 50% | | | | | | 2,268 | | | | | | 46% | | | | | | 2,382 | | | | | | 44% | | | | | | 2,981 | | | | | | 43% | | | | | | 2,961 | | | | | | 37% | | |
Residential construction
|
| | | | 258 | | | | | | 8% | | | | | | 305 | | | | | | 8% | | | | | | 436 | | | | | | 6% | | | | | | 713 | | | | | | 6% | | | | | | 423 | | | | | | 4% | | |
Residential mortgage
|
| | | | 1,078 | | | | | | 26% | | | | | | 1,191 | | | | | | 28% | | | | | | 1,206 | | | | | | 30% | | | | | | 2,146 | | | | | | 30% | | | | | | 4,471 | | | | | | 33% | | |
Consumer
|
| | | | 98 | | | | | | 2% | | | | | | 113 | | | | | | 2% | | | | | | 89 | | | | | | 2% | | | | | | 188 | | | | | | 2% | | | | | | 188 | | | | | | 2% | | |
Other
|
| | | | 42 | | | | | | —% | | | | | | 48 | | | | | | —% | | | | | | 40 | | | | | | —% | | | | | | 38 | | | | | | —% | | | | | | 70 | | | | | | —% | | |
Total
|
| | | $ | 9,647 | | | | | | 100% | | | | | $ | 9,616 | | | | | | 100% | | | | | $ | 9,377 | | | | | | 100% | | | | | $ | 11,590 | | | | | | 100% | | | | | $ | 16,549 | | | | | | 100% | | |
|
| | |
Time Certificates of $250,000 or More by Maturity
|
| |||||||||||||||||||||||||||
| | |
2016
|
| |
2015
|
| |
2014
|
| |
2013
|
| |
2012
|
| |||||||||||||||
Three months or less
|
| | | $ | 3,980 | | | | | $ | 2,820 | | | | | $ | 4,350 | | | | | $ | 3,555 | | | | | $ | 14,394 | | |
Over three months through six months
|
| | | | 7,835 | | | | | | 10,680 | | | | | | 6,454 | | | | | | 8,380 | | | | | | 6,223 | | |
Over six months through twelve months
|
| | | | 3,731 | | | | | | 5,196 | | | | | | 8,203 | | | | | | 5,857 | | | | | | 5,401 | | |
Over twelve months through three years
|
| | | | 8,236 | | | | | | 10,970 | | | | | | 13,428 | | | | | | 16,316 | | | | | | 17,791 | | |
Over three years
|
| | | | 5,985 | | | | | | 5,595 | | | | | | 5,183 | | | | | | 4,068 | | | | | | 10,613 | | |
Total
|
| | | $ | 29,767 | | | | | $ | 35,261 | | | | | $ | 37,618 | | | | | $ | 38,176 | | | | | $ | 54,422 | | |
|
| | |
FHLB Advances
|
| |||||||||||||||
| | |
2016
|
| |
2015
|
| |
2014
|
| |||||||||
Balance outstanding at December 31
|
| | | $ | 70,000 | | | | | $ | 60,000 | | | | | $ | 90,000 | | |
Weighted average rate at December 31
|
| | | | 2.06% | | | | | | 2.38% | | | | | | 3.42% | | |
Maximum borrowings during the year
|
| | | $ | 80,000 | | | | | $ | 90,000 | | | | | $ | 112,000 | | |
Average amounts outstanding during year
|
| | | $ | 69,672 | | | | | $ | 88,773 | | | | | $ | 110,416 | | |
Weighted average rate during year
|
| | | | 2.09% | | | | | | 3.39% | | | | | | 3.57% | | |
| | |
Average Daily Balances, Interest Income/Expense, Average Yield/Rate
For the Years Ended December 31, |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
2016
|
| |
2015
|
| |
2014
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Average
Balance |
| |
Interest
|
| |
Average
Rate |
| |
Average
Balance |
| |
Interest
|
| |
Average
Rate |
| |
Average
Balance |
| |
Interest
|
| |
Average
Rate |
| |||||||||||||||||||||||||||
Interest-earning assets: | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||
Loans
|
| | | $ | 483,741 | | | | | $ | 25,464 | | | | | | 5.26% | | | | | $ | 458,679 | | | | | $ | 25,208 | | | | | | 5.50% | | | | | $ | 474,327 | | | | | $ | 25,331 | | | | | | 5.34% | | |
Investment securities – taxable
|
| | | | 123,618 | | | | | | 2,937 | | | | | | 2.38% | | | | | | 142,305 | | | | | | 3,299 | | | | | | 2.32% | | | | | | 112,989 | | | | | | 2,401 | | | | | | 2.12% | | |
Other investments and FHLB stock
|
| | | | 4,264 | | | | | | 351 | | | | | | 8.23% | | | | | | 4,628 | | | | | | 331 | | | | | | 7.15% | | | | | | 6,106 | | | | | | 326 | | | | | | 5.34% | | |
Interest earning deposits in banks
|
| | | | 39,178 | | | | | | 436 | | | | | | 1.11% | | | | | | 81,787 | | | | | | 528 | | | | | | 0.65% | | | | | | 199,140 | | | | | | 747 | | | | | | 0.38% | | |
Total interest-earning assets
|
| | | | 650,801 | | | | | | 29,188 | | | | | | 4.48% | | | | | | 687,399 | | | | | | 29,366 | | | | | | 4.27% | | | | | | 792,562 | | | | | | 28,805 | | | | | | 3.63% | | |
Other assets
|
| | | | 62,525 | | | | | | | | | | | | | | | | | | 53,056 | | | | | | | | | | | | | | | | | | 39,346 | | | | | ||||||||||
Total assets
|
| | | $ | 713,326 | | | | | | | | | | | | | | | | | $ | 740,455 | | | | | | | | | | | | | | | | | $ | 831,908 | | | | | ||||||||||
Interest-bearing liabilities: | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||
Deposits:
|
| | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||
NOW and money market deposits
|
| | | $ | 150,917 | | | | | $ | 354 | | | | | | 0.23% | | | | | $ | 139,985 | | | | | $ | 316 | | | | | | 0.23% | | | | | $ | 128,345 | | | | | $ | 286 | | | | | | 0.22% | | |
Savings deposits
|
| | | | 41,801 | | | | | | 66 | | | | | | 0.16% | | | | | | 38,194 | | | | | | 57 | | | | | | 0.15% | | | | | | 34,856 | | | | | | 51 | | | | | | 0.15% | | |
Time deposits, $250,000 and over
|
| | | | 32,570 | | | | | | 280 | | | | | | 0.86% | | | | | | 36,644 | | | | | | 328 | | | | | | 0.90% | | | | | | 37,340 | | | | | | 396 | | | | | | 1.06% | | |
Other time deposits
|
| | | | 186,703 | | | | | | 1,628 | | | | | | 0.87% | | | | | | 186,647 | | | | | | 1,745 | | | | | | 0.93% | | | | | | 210,098 | | | | | | 2,139 | | | | | | 1.02% | | |
Borrowed funds
|
| | | | 69,676 | | | | | | 1,479 | | | | | | 2.12% | | | | | | 88,776 | | | | | | 3,059 | | | | | | 3.45% | | | | | | 110,419 | | | | | | 3,997 | | | | | | 3.62% | | |
Subordinated debentures and promissory notes
|
| | | | 23,872 | | | | | | 1,021 | | | | | | 4.28% | | | | | | 24,371 | | | | | | 1,273 | | | | | | 5.22% | | | | | | 24,372 | | | | | | 1,219 | | | | | | 5.00% | | |
Total interest-bearing liabilities
|
| | | | 505,539 | | | | | | 4,828 | | | | | | 0.96% | | | | | | 514,617 | | | | | | 6,778 | | | | | | 1.32% | | | | | | 545,430 | | | | | | 8,088 | | | | | | 1.48% | | |
Noninterest-bearing deposits
|
| | | | 140,024 | | | | | | | | | | | | | | | | | | 169,289 | | | | | | | | | | | | | | | | | | 249,266 | | | | | ||||||||||
Other liabilities
|
| | | | 3,884 | | | | | | | | | | | | | | | | | | 4,719 | | | | | | | | | | | | | | | | | | 5,222 | | | | | ||||||||||
Stockholders’ equity
|
| | | | 63,879 | | | | | | | | | | | | | | | | | | 51,830 | | | | | | | | | | | | | | | | | | 31,990 | | | | | ||||||||||
Total liabilities and stockholders’ equity
|
| | | $ | 713,326 | | | | | | | | | | | | | | | | | $ | 740,455 | | | | | | | | | | | | | | | | | $ | 831,908 | | | | | ||||||||||
Net interest income and interest rate spread
|
| | | | | | | | | $ | 24,360 | | | | | | 3.53% | | | | | | | | | | | $ | 22,588 | | | | | | 2.95% | | | | | | | | | | | $ | 20,717 | | | | | | 2.15% | | |
Net yield on average interest-earning assets
|
| | | | | | | | | | | | | | | | 3.74% | | | | | | | | | | | | | | | | | | 3.29% | | | | | | | | | | | | | | | | | | 2.61% | | |
Ratio of average interest-earning assets
to average interest-bearing liabilities |
| | | | | | | | | | | | | | | | 128.73% | | | | | | | | | | | | | | | | | | 133.57% | | | | | | | | | | | | | | | | | | 145.31% | | |
|
| | |
Year Ended
December 31, 2016 vs. 2015 |
| |
Year Ended
December 31, 2015 vs. 2014 |
| ||||||||||||||||||||||||||||||
| | |
Increase (Decrease) Due to
|
| |
Increase (Decrease) Due to
|
| ||||||||||||||||||||||||||||||
| | |
Volume
|
| |
Rate
|
| |
Total
|
| |
Volume
|
| |
Rate
|
| |
Total
|
| ||||||||||||||||||
Interest income: | | | | | | | | ||||||||||||||||||||||||||||||
Loans
|
| | | $ | 1,348 | | | | | $ | (1,092) | | | | | $ | 256 | | | | | $ | (848) | | | | | $ | 725 | | | | | $ | (123) | | |
Investment securities – taxable
|
| | | | (439) | | | | | | 77 | | | | | | (362) | | | | | | 651 | | | | | | 247 | | | | | | 898 | | |
Other investments
|
| | | | (28) | | | | | | 48 | | | | | | 20 | | | | | | (92) | | | | | | 97 | | | | | | 5 | | |
Interest earning deposits in banks
|
| | | | (375) | | | | | | 283 | | | | | | (92) | | | | | | (599) | | | | | | 380 | | | | | | (219) | | |
Total interest income
|
| | | | 506 | | | | | | (684) | | | | | | (178) | | | | | | (888) | | | | | | 1,449 | | | | | | 561 | | |
Interest expense: | | | | | | | | ||||||||||||||||||||||||||||||
Deposits
|
| | | | | | | ||||||||||||||||||||||||||||||
NOW and money market deposits
|
| | | | 25 | | | | | | 13 | | | | | | 38 | | | | | | 26 | | | | | | 4 | | | | | | 30 | | |
Savings deposits
|
| | | | 6 | | | | | | 3 | | | | | | 9 | | | | | | 5 | | | | | | 1 | | | | | | 6 | | |
Time deposits, $250,000 and over
|
| | | | (36) | | | | | | (12) | | | | | | (48) | | | | | | (7) | | | | | | (61) | | | | | | (68) | | |
Other time deposits
|
| | | | 1 | | | | | | (118) | | | | | | (117) | | | | | | (229) | | | | | | (165) | | | | | | (394) | | |
Borrowed funds
|
| | | | (532) | | | | | | (1,048) | | | | | | (1,580) | | | | | | (764) | | | | | | (174) | | | | | | (938) | | |
Subordinated Debentures
|
| | | | (24) | | | | | | (228) | | | | | | (252) | | | | | | — | | | | | | 54 | | | | | | 54 | | |
Total interest expense
|
| | | | (560) | | | | | | (1,390) | | | | | | (1,950) | | | | | | (969) | | | | | | (341) | | | | | | (1,310) | | |
Net interest income increase
|
| | | $ | 1,066 | | | | | $ | 706 | | | | | $ | 1,772 | | | | | $ | 81 | | | | | $ | 1,790 | | | | | $ | 1,871 | | |
|
| | |
June 30, 2017
|
| |
December 31, 2016
|
| ||||||
Nonaccrual loans: | | | | ||||||||||
Commercial and industrial
|
| | | $ | 51 | | | | | $ | 36 | | |
Commercial construction and land development
|
| | | | 588 | | | | | | 691 | | |
Commercial real estate
|
| | | | 1,817 | | | | | | 2,153 | | |
Residential mortgage
|
| | | | 1,468 | | | | | | 1,444 | | |
Consumer
|
| | | | 74 | | | | | | — | | |
Total nonaccrual loans
|
| | | | 3,998 | | | | | | 4,324 | | |
Past due 90 days or more and still accruing: | | | | ||||||||||
Consumer credit cards
|
| | | | 12 | | | | | | 19 | | |
Business credit cards
|
| | | | — | | | | | | 21 | | |
Total past due 90 days and still accruing
|
| | | | 12 | | | | | | 40 | | |
Foreclosed assets: | | | | ||||||||||
Commercial and industrial
|
| | | | 3 | | | | | | 3 | | |
Commercial construction and land development
|
| | | | 687 | | | | | | 988 | | |
Commercial real estate
|
| | | | 637 | | | | | | 637 | | |
Residential mortgage
|
| | | | 54 | | | | | | 54 | | |
Total foreclosed assets
|
| | | | 1,381 | | | | | | 1,682 | | |
Total nonperforming assets
|
| | | $ | 5,391 | | | | | $ | 6,046 | | |
Nonperforming loans to gross loans
|
| | | | 0.8% | | | | | | 0.9% | | |
Nonperforming assets to total assets
|
| | | | 0.7% | | | | | | 0.8% | | |
Allowance coverage of nonperforming loans
|
| | | | 240.7% | | | | | | 221.1% | | |
| | |
June 30, 2017
|
| |
December 31, 2016
|
| ||||||
Performing TDRs: | | | | ||||||||||
Commercial real estate
|
| | | $ | 965 | | | | | $ | 714 | | |
Residential mortgage
|
| | | | 213 | | | | | | 474 | | |
Total performing TDRs
|
| | | $ | 1,178 | | | | | $ | 1,188 | | |
|
| | |
June 30, 2017
|
| |
December 31, 2016
|
| ||||||
Nonperforming TDRs: | | | | ||||||||||
Commercial and industrial
|
| | | $ | 43 | | | | | $ | 24 | | |
Commercial real estate
|
| | | | 339 | | | | | | 657 | | |
Residential mortgage
|
| | | | 253 | | | | | | 121 | | |
Total nonperforming TDRs
|
| | | $ | 635 | | | | | $ | 802 | | |
|
| | |
Three Months Ended
June 30, |
| |
Six Months Ended
June 30, |
| ||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2017
|
| |
2016
|
| ||||||||||||
Balance at beginning of period
|
| | | $ | 9,620 | | | | | $ | 9,084 | | | | | $ | 9,647 | | | | | $ | 9,616 | | |
Charge-offs: | | | | | | ||||||||||||||||||||
Commercial and industrial
|
| | | | — | | | | | | 35 | | | | | | 15 | | | | | | 59 | | |
Commercial construction and land development
|
| | | | — | | | | | | 97 | | | | | | — | | | | | | 97 | | |
Commercial real estate
|
| | | | — | | | | | | — | | | | | | — | | | | | | 565 | | |
Residential mortgage
|
| | | | 1 | | | | | | — | | | | | | 24 | | | | | | — | | |
Consumer
|
| | | | 30 | | | | | | 29 | | | | | | 84 | | | | | | 70 | | |
Total charge-offs
|
| | | | 31 | | | | | | 161 | | | | | | 123 | | | | | | 791 | | |
Recoveries: | | | | | | ||||||||||||||||||||
Commercial and industrial
|
| | | | 12 | | | | | | 22 | | | | | | 28 | | | | | | 49 | | |
Commercial construction and land development
|
| | | | 20 | | | | | | 51 | | | | | | 38 | | | | | | 62 | | |
Commercial real estate
|
| | | | 1 | | | | | | — | | | | | | 2 | | | | | | 2 | | |
Residential construction
|
| | | | — | | | | | | — | | | | | | — | | | | | | 21 | | |
Residential mortgage
|
| | | | 8 | | | | | | 11 | | | | | | 19 | | | | | | 21 | | |
Consumer
|
| | | | 24 | | | | | | 61 | | | | | | 42 | | | | | | 87 | | |
Other
|
| | | | — | | | | | | 1 | | | | | | 1 | | | | | | 2 | | |
Total recoveries
|
| | | | 65 | | | | | | 146 | | | | | | 130 | | | | | | 244 | | |
Net recoveries (charge-offs)
|
| | | | 34 | | | | | | (15) | | | | | | 7 | | | | | | (547) | | |
Provision for loan losses
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balance at end of period
|
| | | $ | 9,654 | | | | | $ | 9,069 | | | | | $ | 9,654 | | | | | $ | 9,069 | | |
Ratio of net charge-offs to average gross loans
|
| | | | —% | | | | | | —% | | | | | | —% | | | | | | 0.12% | | |
| | |
June 30, 2017
|
| |
December 31, 2016
|
| ||||||||||||||||||
| | |
Amount
|
| |
% of loans in
each category |
| |
Amount
|
| |
% of loans in
each category |
| ||||||||||||
Commercial and industrial
|
| | | $ | 68 | | | | | | 5% | | | | | $ | 58 | | | | | | 5% | | |
Commercial construction and land development
|
| | | | 5,005 | | | | | | 9% | | | | | | 4,915 | | | | | | 9% | | |
Commercial real estate
|
| | | | 3,064 | | | | | | 50% | | | | | | 3,198 | | | | | | 50% | | |
Residential construction
|
| | | | 317 | | | | | | 9% | | | | | | 258 | | | | | | 8% | | |
Residential mortgage
|
| | | | 1,001 | | | | | | 25% | | | | | | 1,078 | | | | | | 26% | | |
Consumer
|
| | | | 163 | | | | | | 2% | | | | | | 98 | | | | | | 2% | | |
Other
|
| | | | 36 | | | | | | —% | | | | | | 42 | | | | | | —% | | |
Total
|
| | | $ | 9,654 | | | | | | 100% | | | | | $ | 9,647 | | | | | | 100% | | |
|
Name of Beneficial Owner
|
| |
Amount and Nature of
Beneficial Ownership(1) |
| |
Percent
of Class(1) |
| ||||||
Kenneth R. Lehman(2)
|
| | | | 3,200,000 | | | | | | 47.3% | | |
Ayden R. Lee, Jr.(3)
|
| | | | 81,109 | | | | | | 1.2% | | |
David H. Rupp(4)
|
| | | | 55,609 | | | | | | * | | |
Dr. R. Max Raynor, Jr.(5)
|
| | | | 46,555 | | | | | | * | | |
Michael A. Weeks(6)
|
| | | | 38,050 | | | | | | * | | |
Jeff D. Pope(7)
|
| | | | 34,120 | | | | | | * | | |
Lisa S. Herring(8)
|
| | | | 27,400 | | | | | | * | | |
W. Leon Hiatt, III(9)
|
| | | | 22,244 | | | | | | * | | |
Warren L. Grimes(10)
|
| | | | 21,079 | | | | | | * | | |
Robert G. Rabon(11)
|
| | | | 5,600 | | | | | | * | | |
All Current Directors and Executive Officers as a Group (12 persons)(12)
|
| | | | 3,566,777 | | | | | | 52.7% | | |
| Consolidated Financial Statements for the Years Ended December 31, 2016 and 2015 | | | |||||
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| | | | | F-8 | | | |
|
Interim Consolidated Financial Statements (Unaudited) at June 30, 2017 and for the Six Months Ended June 30, 2017 and 2016
|
| | |||||
| | | | | F-43 | | | |
| | | | | F-44 | | | |
| | | | | F-45 | | | |
| | | | | F-46 | | | |
| | | | | F-47 | | | |
| | | | | F-48 | | |
| | |
2016
|
| |
2015
|
| ||||||
ASSETS | | | | ||||||||||
Cash and due from banks
|
| | | $ | 23,940 | | | | | $ | 17,375 | | |
Interest-earning deposits
|
| | | | 8,623 | | | | | | 9,380 | | |
Cash and cash equivalents
|
| | | | 32,563 | | | | | | 26,755 | | |
Certificates of deposits held for investment
|
| | | | 18,125 | | | | | | 23,520 | | |
Investment securities available-for-sale, at fair value
|
| | | | 58,141 | | | | | | 70,281 | | |
Investment securities held-to-maturity, at amortized cost
|
| | | | 51,205 | | | | | | 65,354 | | |
Total investment securities
|
| | | | 109,346 | | | | | | 135,635 | | |
Loans held for sale
|
| | | | 206 | | | | | | 1,145 | | |
Loans
|
| | | | 507,004 | | | | | | 458,313 | | |
Allowance for loan losses
|
| | | | (9,647) | | | | | | (9,616) | | |
Net loans
|
| | | | 497,357 | | | | | | 448,697 | | |
Accrued interest receivable
|
| | | | 1,598 | | | | | | 1,594 | | |
Bank premises and equipment held for sale
|
| | | | 2,373 | | | | | | — | | |
Bank premises and equipment, net
|
| | | | 9,844 | | | | | | 12,293 | | |
FHLB stock
|
| | | | 3,596 | | | | | | 3,288 | | |
Investment in life insurance
|
| | | | 19,987 | | | | | | 14,777 | | |
Foreclosed assets
|
| | | | 1,682 | | | | | | 1,760 | | |
Deferred tax assets, net
|
| | | | 18,201 | | | | | | 16,679 | | |
Other assets
|
| | | | 5,005 | | | | | | 5,244 | | |
TOTAL ASSETS
|
| | | $ | 719,883 | | | | | $ | 691,387 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | ||||||||||
Deposits: | | | | ||||||||||
Noninterest-bearing demand
|
| | | $ | 151,860 | | | | | $ | 132,044 | | |
Money market, NOW accounts and savings accounts
|
| | | | 200,386 | | | | | | 180,214 | | |
Time deposits, $250,000 and over
|
| | | | 29,767 | | | | | | 35,261 | | |
Other time deposits
|
| | | | 171,518 | | | | | | 194,815 | | |
Total deposits
|
| | | | 553,531 | | | | | | 542,334 | | |
Borrowings
|
| | | | 70,000 | | | | | | 60,000 | | |
Subordinated debentures
|
| | | | 12,372 | | | | | | 12,372 | | |
Subordinated promissory notes
|
| | | | 11,500 | | | | | | 11,500 | | |
Accrued interest payable
|
| | | | 384 | | | | | | 437 | | |
Other liabilities
|
| | | | 4,091 | | | | | | 4,338 | | |
TOTAL LIABILITIES
|
| | | | 651,878 | | | | | | 630,981 | | |
Commitments and Contingencies (Note L) | | | | ||||||||||
Shareholders’ equity: | | | | ||||||||||
Common stock, $1.00 par value, 16,000,000 shares authorized; 6,757,047 and
6,719,162 shares issued and outstanding at December 31, 2016 and December 31, 2015, respectively(1) |
| | | | 6,757 | | | | | | 6,719 | | |
Additional paid-in capital
|
| | | | 58,976 | | | | | | 58,543 | | |
Retained earnings (accumulated deficit)
|
| | | | 2,287 | | | | | | (4,571) | | |
Accumulated other comprehensive loss
|
| | | | (15) | | | | | | (285) | | |
Total shareholders’ equity
|
| | | | 68,005 | | | | | | 60,406 | | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
| | | $ | 719,883 | | | | | $ | 691,387 | | |
|
| | |
2016
|
| |
2015
|
| ||||||
Interest and dividend income: | | | | ||||||||||
Loans, including fees
|
| | | $ | 25,464 | | | | | $ | 25,208 | | |
Taxable investments
|
| | | | 2,937 | | | | | | 3,299 | | |
Dividends and other investments
|
| | | | 351 | | | | | | 331 | | |
Interest-earning deposits
|
| | | | 436 | | | | | | 528 | | |
Total interest and dividend income
|
| | | | 29,188 | | | | | | 29,366 | | |
Interest expense: | | | | ||||||||||
Deposits
|
| | | | 2,328 | | | | | | 2,446 | | |
Borrowings
|
| | | | 1,479 | | | | | | 3,059 | | |
Subordinated debentures
|
| | | | 255 | | | | | | 250 | | |
Subordinated promissory notes
|
| | | | 766 | | | | | | 1,023 | | |
Total interest expense
|
| | | | 4,828 | | | | | | 6,778 | | |
Net interest income
|
| | | | 24,360 | | | | | | 22,588 | | |
Provision for loan losses
|
| | | | — | | | | | | — | | |
Net interest income after provision for loan losses
|
| | | | 24,360 | | | | | | 22,588 | | |
Non-interest income: | | | | ||||||||||
Service charges on deposit accounts
|
| | | | 1,445 | | | | | | 1,566 | | |
Other service charges, commissions and fees
|
| | | | 3,444 | | | | | | 3,664 | | |
Gains on sale of investment securities available-for-sale, net
|
| | | | 266 | | | | | | 265 | | |
Gains on sale of loans held for sale
|
| | | | 351 | | | | | | 3,205 | | |
Income from investment in life insurance
|
| | | | 210 | | | | | | 187 | | |
Indemnification from third party payment processor clients
|
| | | | — | | | | | | 445 | | |
Other non-interest income
|
| | | | 61 | | | | | | 225 | | |
Total non-interest income
|
| | | | 5,777 | | | | | | 9,557 | | |
Non-interest expense: | | | | ||||||||||
Salaries
|
| | | | 10,970 | | | | | | 12,190 | | |
Employee benefits
|
| | | | 2,354 | | | | | | 2,072 | | |
Occupancy expenses
|
| | | | 1,338 | | | | | | 1,342 | | |
Equipment expenses
|
| | | | 567 | | | | | | 707 | | |
Professional and consulting fees
|
| | | | 2,246 | | | | | | 2,500 | | |
FDIC assessments
|
| | | | 422 | | | | | | 736 | | |
Foreclosed asset-related costs, net
|
| | | | 623 | | | | | | 393 | | |
Collection expenses
|
| | | | 129 | | | | | | 337 | | |
Prepayment of FHLB borrowings
|
| | | | — | | | | | | 2,089 | | |
Other operating expenses
|
| | | | 6,198 | | | | | | 6,251 | | |
Total non-interest expense
|
| | | | 24,847 | | | | | | 28,617 | | |
Income before income taxes
|
| | | | 5,290 | | | | | | 3,528 | | |
Income tax benefit
|
| | | | (1,568) | | | | | | (16,480) | | |
Net income
|
| | | $ | 6,858 | | | | | $ | 20,008 | | |
Basic net income per common share(1)
|
| | | $ | 1.06 | | | | | $ | 3.12 | | |
Diluted net income per common share(1)
|
| | | $ | 1.04 | | | | | $ | 3.10 | | |
|
| | |
2016
|
| |
2015
|
| ||||||
Net income
|
| | | $ | 6,858 | | | | | $ | 20,008 | | |
Other comprehensive income (loss): | | | | ||||||||||
Securities available-for-sale:
|
| | | ||||||||||
Unrealized holding gains (losses) on available-for-sale securities
|
| | | | 728 | | | | | | (882) | | |
Tax effect
|
| | | | (170) | | | | | | 203 | | |
Reclassification of gains recognized in net income
|
| | | | (266) | | | | | | (265) | | |
Tax effect
|
| | | | — | | | | | | — | | |
Amortization of unrealized losses on investment securities transferred from available-for-sale to held-to-maturity
|
| | | | (36) | | | | | | (59) | | |
Tax effect
|
| | | | 14 | | | | | | (38) | | |
Total other comprehensive income (loss)
|
| | | | 270 | | | | | | (1,041) | | |
Comprehensive income
|
| | | $ | 7,128 | | | | | $ | 18,967 | | |
|
| | |
Common stock
|
| |
Additional
paid-in capital |
| |
(Accumulated
deficit) retained earnings |
| |
Accumulated
other comprehensive income (loss) |
| |
Total
shareholders’ equity |
| |||||||||||||||||||||
| | |
Shares(1)
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2014
|
| | | | 6,406,465 | | | | | $ | 6,406 | | | | | $ | 58,146 | | | | | $ | (24,579) | | | | | $ | 756 | | | | | $ | 40,729 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 20,008 | | | | | | — | | | | | | 20,008 | | |
Other comprehensive loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,041) | | | | | | (1,041) | | |
Stock based compensation
|
| | | | — | | | | | | — | | | | | | 565 | | | | | | — | | | | | | — | | | | | | 565 | | |
Issuance of common stock
|
| | | | 23,405 | | | | | | 24 | | | | | | 146 | | | | | | — | | | | | | — | | | | | | 170 | | |
Issuance of restricted stock
|
| | | | 304,200 | | | | | | 304 | | | | | | (304) | | | | | | — | | | | | | — | | | | | | — | | |
Forfeiture of restricted stock
|
| | | | (12,000) | | | | | | (12) | | | | | | 12 | | | | | | — | | | | | | — | | | | | | — | | |
Stock withheld for payment of taxes
|
| | | | (2,908) | | | | | | (3) | | | | | | (22) | | | | | | — | | | | | | — | | | | | | (25) | | |
BALANCE, DECEMBER 31, 2015
|
| | | | 6,719,162 | | | | | $ | 6,719 | | | | | $ | 58,543 | | | | | $ | (4,571) | | | | | $ | (285) | | | | | $ | 60,406 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 6,858 | | | | | | — | | | | | | 6,858 | | |
Other comprehensive income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 270 | | | | | | 270 | | |
Stock based compensation
|
| | | | — | | | | | | — | | | | | | 352 | | | | | | — | | | | | | — | | | | | | 352 | | |
Issuance of common stock
|
| | | | 22,083 | | | | | | 22 | | | | | | 166 | | | | | | — | | | | | | — | | | | | | 188 | | |
Excess income tax benefit
|
| | | | — | | | | | | — | | | | | | 2 | | | | | | — | | | | | | — | | | | | | 2 | | |
Issuance of restricted stock
|
| | | | 42,000 | | | | | | 42 | | | | | | (42) | | | | | | — | | | | | | — | | | | | | — | | |
Forfeiture of restricted stock
|
| | | | (18,700) | | | | | | (19) | | | | | | 19 | | | | | | — | | | | | | — | | | | | | — | | |
Stock withheld for payment of taxes
|
| | | | (7,498) | | | | | | (7) | | | | | | (64) | | | | | | — | | | | | | — | | | | | | (71) | | |
BALANCE, DECEMBER 31, 2016
|
| | | | 6,757,047 | | | | | $ | 6,757 | | | | | $ | 58,976 | | | | | $ | 2,287 | | | | | $ | (15) | | | | | $ | 68,005 | | |
|
| | |
2016
|
| |
2015
|
| ||||||
Cash flows from operating activities: | | | | ||||||||||
Net income
|
| | | $ | 6,858 | | | | | $ | 20,008 | | |
Adjustments to reconcile net income to net cash provided by operating activities:
|
| | | ||||||||||
Deferred income tax benefit
|
| | | | (1,678) | | | | | | (16,514) | | |
Provision for depreciation and amortization
|
| | | | 675 | | | | | | 684 | | |
Net amortization of bond premiums and discounts
|
| | | | 924 | | | | | | 1,153 | | |
Stock based compensation
|
| | | | 352 | | | | | | 565 | | |
Excess tax benefits from stock options
|
| | | | 2 | | | | | | — | | |
Gain on sale of investment securities
|
| | | | (266) | | | | | | (265) | | |
Loss on disposition of bank premises and equipment
|
| | | | 21 | | | | | | 48 | | |
Gain on sale of foreclosed assets, net
|
| | | | (10) | | | | | | (73) | | |
Valuation adjustment on foreclosed assets
|
| | | | 405 | | | | | | 344 | | |
Earnings on investment in bank-owned life insurance
|
| | | | (210) | | | | | | (187) | | |
Gain on sale of mortgage loans held for sale
|
| | | | (580) | | | | | | (644) | | |
Gain on sale of problem loans held for sale
|
| | | | (351) | | | | | | (3,205) | | |
Originations of mortgage loans held for sale
|
| | | | (23,334) | | | | | | (29,060) | | |
Proceeds from sale of loans held for sale
|
| | | | 25,204 | | | | | | 37,003 | | |
Changes in assets and liabilities:
|
| | | ||||||||||
Other assets
|
| | | | 239 | | | | | | 1,004 | | |
Accrued interest receivable
|
| | | | (4) | | | | | | 33 | | |
Other liabilities
|
| | | | (247) | | | | | | 1,532 | | |
Accrued interest payable
|
| | | | (53) | | | | | | (1,267) | | |
Net cash provided by operating activities
|
| | | | 7,947 | | | | | | 11,159 | | |
Cash flows from investing activities: | | | | ||||||||||
Proceeds from sales and calls of investment securities available-for-sale
|
| | | | 5,198 | | | | | | 8,324 | | |
Proceeds from maturities and calls of investment securities held-to-maturity
|
| | | | 100 | | | | | | — | | |
Proceeds from paydowns of investment securities available-for-sale
|
| | | | 7,756 | | | | | | 6,008 | | |
Proceeds from paydowns of investment securities held-to-maturity
|
| | | | 13,503 | | | | | | 15,430 | | |
Purchases of investment securities available-for-sale
|
| | | | (500) | | | | | | (21,697) | | |
Redemption of certificates of deposits held for investment
|
| | | | 5,395 | | | | | | 4,264 | | |
Purchase of bank-owned life insurance
|
| | | | (5,000) | | | | | | — | | |
(Purchase) redemption of FHLB stock
|
| | | | (308) | | | | | | 1,500 | | |
Net increase in loans outstanding
|
| | | | (49,677) | | | | | | (9,414) | | |
Purchases of bank premises and equipment
|
| | | | (620) | | | | | | (1,130) | | |
Proceeds from sales of foreclosed assets
|
| | | | 700 | | | | | | 2,990 | | |
Net cash (used in) provided by investing activities
|
| | | | (23,453) | | | | | | 6,275 | | |
Cash flows from financing activities: | | | | ||||||||||
Net proceeds (repayments) from borrowings
|
| | | | 10,000 | | | | | | (30,000) | | |
Net increase (decrease) in deposit accounts
|
| | | | 11,197 | | | | | | (118,851) | | |
Proceeds from issuance of common stock
|
| | | | 188 | | | | | | 170 | | |
Net repayments of subordinated promissory notes
|
| | | | — | | | | | | (500) | | |
Shares withheld for payment of taxes
|
| | | | (71) | | | | | | (25) | | |
Net cash provided by (used in) financing activities
|
| | | | 21,314 | | | | | | (149,206) | | |
Change in cash and cash equivalents
|
| | | | 5,808 | | | | | | (131,772) | | |
Cash and cash equivalents at beginning of year
|
| | | | 26,755 | | | | | | 158,527 | | |
Cash and cash equivalents at end of year
|
| | | $ | 32,563 | | | | | $ | 26,755 | | |
Supplemental disclosures of cash flow information: | | | | ||||||||||
Interest paid on deposits and borrowings
|
| | | $ | 4,881 | | | | | $ | 8,045 | | |
Supplemental disclosures of noncash investing and financing activities: | | | | ||||||||||
Unrealized gains (losses) on investment securities available-for-sale
|
| | | $ | 462 | | | | | $ | (1,147) | | |
Loans transferred from held for investment to held for sale
|
| | | | — | | | | | | 2,618 | | |
Transfer of loans to foreclosed assets
|
| | | | 1,017 | | | | | | 1,239 | | |
Transfer from premises and equipment to premises and equipment held for sale
|
| | | | 2,373 | | | | | | — | | |
Loans transferred from held for sale to held for investment
|
| | | | — | | | | | | 261 | | |
Amortization of net losses on investment securities transferred to held-to-maturity
|
| | | | (36) | | | | | | (59) | | |
| | |
Twelve Months Ended
December 31, |
| |||||||||
| | |
2016
|
| |
2015
|
| ||||||
Net income available to common shareholders
|
| | | $ | 6,858 | | | | | $ | 20,008 | | |
Weighted average number of common shares – basic
|
| | | | 6,480,154 | | | | | | 6,420,734 | | |
Effect of dilutive stock options
|
| | | | 7,664 | | | | | | 3,155 | | |
Effect of dilutive restricted stock awards
|
| | | | 76,475 | | | | | | 25,656 | | |
Weighted average number of common shares – dilutive
|
| | | | 6,564,293 | | | | | | 6,449,545 | | |
Basic earnings per common share
|
| | | $ | 1.06 | | | | | $ | 3.12 | | |
Diluted earnings per common share
|
| | | $ | 1.04 | | | | | $ | 3.10 | | |
Anti-dilutive awards
|
| | | | 2,461 | | | | | | 29,531 | | |
| | |
Securities Available-for-Sale
At December 31, |
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
2016
|
| |
2015
|
| ||||||||||||||||||||||||||||||||||||||||||
| | |
Amortized
Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Fair
Value |
| |
Amortized
Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Fair
Value |
| ||||||||||||||||||||||||
Taxable municipal securities
|
| | | $ | 19,846 | | | | | $ | 350 | | | | | $ | 147 | | | | | $ | 20,049 | | | | | $ | 24,789 | | | | | $ | 225 | | | | | $ | 447 | | | | | $ | 24,567 | | |
Mortgage-backed securities
|
| | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
GNMA
|
| | | | 11,704 | | | | | | 44 | | | | | | 68 | | | | | | 11,680 | | | | | | 13,512 | | | | | | 68 | | | | | | 50 | | | | | | 13,530 | | |
FNMA & FHLMC
|
| | | | 25,684 | | | | | | — | | | | | | 272 | | | | | | 25,412 | | | | | | 32,024 | | | | | | — | | | | | | 351 | | | | | | 31,673 | | |
Other debt securities
|
| | | | 1,000 | | | | | | — | | | | | | — | | | | | | 1,000 | | | | | | 500 | | | | | | — | | | | | | — | | | | | | 500 | | |
Equity securities
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 11 | | | | | | — | | | | | | — | | | | | | 11 | | |
Total | | | | $ | 58,234 | | | | | $ | 394 | | | | | $ | 487 | | | | | $ | 58,141 | | | | | $ | 70,836 | | | | | $ | 293 | | | | | $ | 848 | | | | | $ | 70,281 | | |
|
| | |
Securities Held-to-Maturity
At December 31, |
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
2016
|
| |
2015
|
| ||||||||||||||||||||||||||||||||||||||||||
| | |
Amortized
Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Fair
Value |
| |
Amortized
Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Fair
Value |
| ||||||||||||||||||||||||
Taxable municipal securities
|
| | | $ | 3,380 | | | | | $ | 9 | | | | | $ | 3 | | | | | $ | 3,386 | | | | | $ | 3,531 | | | | | $ | 1 | | | | | $ | 20 | | | | | $ | 3,512 | | |
Mortgage-backed securities
|
| | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
GNMA
|
| | | | 45,968 | | | | | | 407 | | | | | | 187 | | | | | | 46,188 | | | | | | 59,185 | | | | | | 509 | | | | | | 230 | | | | | | 59,464 | | |
FNMA
|
| | | | 1,857 | | | | | | 21 | | | | | | — | | | | | | 1,878 | | | | | | 2,638 | | | | | | 19 | | | | | | — | | | | | | 2,657 | | |
Total | | | | $ | 51,205 | | | | | $ | 437 | | | | | $ | 190 | | | | | $ | 51,452 | | | | | $ | 65,354 | | | | | $ | 529 | | | | | $ | 250 | | | | | $ | 65,633 | | |
|
| | |
Securities Available-for-Sale
December 31, 2016 |
| |||||||||||||||||||||||||||||||||
| | |
Less Than 12 Months
|
| |
12 Months or More
|
| |
Total
|
| |||||||||||||||||||||||||||
| | |
Fair
value |
| |
Unrealized
losses |
| |
Fair
value |
| |
Unrealized
losses |
| |
Fair
value |
| |
Unrealized
losses |
| ||||||||||||||||||
Taxable municipal securities
|
| | | $ | 9,988 | | | | | $ | 147 | | | | | $ | — | | | | | $ | — | | | | | $ | 9,988 | | | | | $ | 147 | | |
Mortgage-backed securities | | | | | | | | ||||||||||||||||||||||||||||||
GNMA
|
| | | | 8,842 | | | | | | 68 | | | | | | — | | | | | | — | | | | | | 8,842 | | | | | | 68 | | |
FNMA & FHLMC
|
| | | | 25,412 | | | | | | 272 | | | | | | — | | | | | | — | | | | | | 25,412 | | | | | | 272 | | |
Total temporarily impaired securities
|
| | | $ | 44,242 | | | | | $ | 487 | | | | | $ | — | | | | | $ | — | | | | | $ | 44,242 | | | | | $ | 487 | | |
|
| | |
Securities Available-for-Sale
December 31, 2015 |
| |||||||||||||||||||||||||||||||||
| | |
Less Than 12 Months
|
| |
12 Months or More
|
| |
Total
|
| |||||||||||||||||||||||||||
| | |
Fair
value |
| |
Unrealized
losses |
| |
Fair
value |
| |
Unrealized
losses |
| |
Fair
value |
| |
Unrealized
losses |
| ||||||||||||||||||
Taxable municipal securities
|
| | | $ | 16,888 | | | | | $ | 447 | | | | | $ | — | | | | | $ | — | | | | | $ | 16,888 | | | | | $ | 447 | | |
Mortgage-backed securities | | | | | | | | ||||||||||||||||||||||||||||||
GNMA
|
| | | | 10,010 | | | | | | 50 | | | | | | — | | | | | | — | | | | | | 10,010 | | | | | | 50 | | |
FNMA & FHLMC
|
| | | | 31,673 | | | | | | 351 | | | | | | — | | | | | | — | | | | | | 31,673 | | | | | | 351 | | |
Total temporarily impaired securities
|
| | | $ | 58,571 | | | | | $ | 848 | | | | | $ | — | | | | | $ | — | | | | | $ | 58,571 | | | | | $ | 848 | | |
|
| | |
Securities Held-to-Maturity
December 31, 2016 |
| |||||||||||||||||||||||||||||||||
| | |
Less Than 12 Months
|
| |
12 Months or More
|
| |
Total
|
| |||||||||||||||||||||||||||
| | |
Fair
value |
| |
Unrealized
losses |
| |
Fair
value |
| |
Unrealized
losses |
| |
Fair
value |
| |
Unrealized
losses |
| ||||||||||||||||||
Taxable municipal securities
|
| | | $ | 525 | | | | | $ | 3 | | | | | $ | — | | | | | $ | — | | | | | $ | 525 | | | | | $ | 3 | | |
Mortgage-backed securities | | | | | | | | ||||||||||||||||||||||||||||||
GNMA
|
| | | | 21,074 | | | | | | 187 | | | | | | — | | | | | | — | | | | | | 21,074 | | | | | | 187 | | |
Total temporarily impaired securities
|
| | | $ | 21,599 | | | | | $ | 190 | | | | | $ | — | | | | | $ | — | | | | | $ | 21,599 | | | | | $ | 190 | | |
|
| | |
Securities Held-to-Maturity
December 31, 2015 |
| |||||||||||||||||||||||||||||||||
| | |
Less Than 12 Months
|
| |
12 Months or More
|
| |
Total
|
| |||||||||||||||||||||||||||
| | |
Fair
value |
| |
Unrealized
losses |
| |
Fair
value |
| |
Unrealized
losses |
| |
Fair
value |
| |
Unrealized
losses |
| ||||||||||||||||||
Taxable municipal securities
|
| | | $ | 3,325 | | | | | $ | 20 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,325 | | | | | $ | 20 | | |
Mortgage-backed securities | | | | | | | | ||||||||||||||||||||||||||||||
GNMA
|
| | | | 20,784 | | | | | | 116 | | | | | | 5,130 | | | | | | 114 | | | | | | 25,914 | | | | | | 230 | | |
Total temporarily impaired securities
|
| | | $ | 24,109 | | | | | $ | 136 | | | | | $ | 5,130 | | | | | $ | 114 | | | | | $ | 29,239 | | | | | $ | 250 | | |
|
| | |
Available-for-Sale
|
||||||||||||||||||||||||||||||||||||||||||||
| | |
Taxable municipal
securities |
| |
Mortgage-backed
securities – GNMA |
| |
Mortgage-backed
securities – FNMA & FHLMC |
| |
Other Debt Securities
|
|||||||||||||||||||||||||||||||||||
| | |
Amortized
Cost |
| |
Fair
Value |
| |
Amortized
Cost |
| |
Fair
Value |
| |
Amortized
Cost |
| |
Fair
Value |
| |
Amortized
Cost |
| |
Fair
Value |
|||||||||||||||||||||||
Due after five years through ten years
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1,000 | | | | | $ | 1,000 |
Due after ten years
|
| | | | 19,846 | | | | | | 20,049 | | | | | | 11,704 | | | | | | 11,680 | | | | | | 25,684 | | | | | | 25,412 | | | | | | — | | | | | | — |
Total Munis, GNMA, FNMA &
FHLMC, and Other Debt securities |
| | | $ | 19,846 | | | | | $ | 20,049 | | | | | $ | 11,704 | | | | | $ | 11,680 | | | | | $ | 25,684 | | | | | $ | 25,412 | | | | | $ | 1,000 | | | | | $ | 1,000 |
|
| | |
Held-to-Maturity
|
| |||||||||||||||||||||||||||||||||
| | |
Taxable municipal
securities |
| |
Mortgage-backed
securities – GNMA |
| |
Mortgage-backed
securities – FNMA |
| |||||||||||||||||||||||||||
| | |
Amortized
Cost |
| |
Fair
Value |
| |
Amortized
Cost |
| |
Fair
Value |
| |
Amortized
Cost |
| |
Fair
Value |
| ||||||||||||||||||
Due within one year
|
| | | $ | 155 | | | | | $ | 155 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Due after one year through five years
|
| | | | 2,700 | | | | | | 2,701 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Due after five years through ten years
|
| | | | 525 | | | | | | 530 | | | | | | 5,231 | | | | | | 5,366 | | | | | | 1,857 | | | | | | 1,878 | | |
Due after ten years
|
| | | | — | | | | | | — | | | | | | 40,737 | | | | | | 40,822 | | | | | | — | | | | | | — | | |
Total Munis, GNMA, and FNMA securities
|
| | | $ | 3,380 | | | | | $ | 3,386 | | | | | $ | 45,968 | | | | | $ | 46,188 | | | | | $ | 1,857 | | | | | $ | 1,878 | | |
|
| | |
2016
|
| |
2015
|
| ||||||
Commercial and industrial
|
| | | $ | 21,742 | | | | | $ | 23,163 | | |
Commercial construction and land development
|
| | | | 46,114 | | | | | | 50,510 | | |
Commercial real estate
|
| | | | 253,086 | | | | | | 208,737 | | |
Residential construction
|
| | | | 42,660 | | | | | | 36,618 | | |
Residential mortgage
|
| | | | 132,971 | | | | | | 128,442 | | |
Consumer | | | | | 6,896 | | | | | | 6,638 | | |
Other | | | | | 502 | | | | | | 1,257 | | |
Consumer credit cards
|
| | | | 2,114 | | | | | | 2,240 | | |
Business credit cards
|
| | | | 1,235 | | | | | | 1,168 | | |
| | | | | 507,320 | | | | | | 458,773 | | |
Net deferred loan fees
|
| | | | (316) | | | | | | (460) | | |
Allowance for loan losses
|
| | | | (9,647) | | | | | | (9,616) | | |
Total net loans
|
| | | $ | 497,357 | | | | | $ | 448,697 | | |
Loans held for sale
|
| | | $ | 206 | | | | | $ | 1,145 | | |
|
| | |
2016
|
| |
2015
|
| ||||||
Loans past due ninety days or more and still accruing
|
| | | $ | 40 | | | | | $ | 65 | | |
Nonaccrual loans
|
| | | | 4,324 | | | | | | 6,598 | | |
Foreclosed assets
|
| | | | 1,682 | | | | | | 1,760 | | |
Total | | | | $ | 6,046 | | | | | $ | 8,423 | | |
|
| | |
2016
|
| |
2015
|
| ||||||
Beginning balance
|
| | | $ | 7,729 | | | | | $ | 7,683 | | |
New loans
|
| | | | 32 | | | | | | 1,689 | | |
Principal repayments
|
| | | | (384) | | | | | | (1,643) | | |
Ending balance
|
| | | $ | 7,377 | | | | | $ | 7,729 | | |
|
| | |
December 31, 2016
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Commercial
and Industrial |
| |
Commercial
Construction and Land Development |
| |
Commercial
Real Estate |
| |
Residential –
Construction |
| |
Residential –
Mortgage |
| |
Consumer
|
| |
Other
|
| |
Total
|
| ||||||||||||||||||||||||
1 – Lowest Risk
|
| | | $ | 897 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1,321 | | | | | $ | — | | | | | $ | 2,218 | | |
2 – Strong | | | | | 915 | | | | | | 1,524 | | | | | | 5,439 | | | | | | 292 | | | | | | 15,105 | | | | | | 597 | | | | | | 97 | | | | | | 23,969 | | |
3 – Standard | | | | | 9,588 | | | | | | 13,671 | | | | | | 116,065 | | | | | | 12,300 | | | | | | 56,374 | | | | | | 1,131 | | | | | | 311 | | | | | | 209,440 | | |
4 – Acceptable | | | | | 9,932 | | | | | | 26,926 | | | | | | 118,077 | | | | | | 30,068 | | | | | | 53,832 | | | | | | 3,770 | | | | | | 94 | | | | | | 242,699 | | |
5 – Special Mention
|
| | | | 373 | | | | | | 3,261 | | | | | | 10,088 | | | | | | — | | | | | | 5,804 | | | | | | 77 | | | | | | — | | | | | | 19,603 | | |
6 – Substandard or
worse(1) |
| | | | 37 | | | | | | 732 | | | | | | 3,417 | | | | | | — | | | | | | 1,856 | | | | | | — | | | | | | — | | | | | | 6,042 | | |
| | | | $ | 21,742 | | | | | $ | 46,114 | | | | | $ | 253,086 | | | | | $ | 42,660 | | | | | $ | 132,971 | | | | | $ | 6,896 | | | | | $ | 502 | | | | | $ | 503,971 | | |
|
| | |
December 31, 2015
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Commercial
and Industrial |
| |
Commercial
Construction and Land Development |
| |
Commercial
Real Estate |
| |
Residential –
Construction |
| |
Residential –
Mortgage |
| |
Consumer
|
| |
Other
|
| |
Total
|
| ||||||||||||||||||||||||
1 – Lowest Risk
|
| | | $ | 1,942 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1,773 | | | | | $ | — | | | | | $ | 3,715 | | |
2 – Strong | | | | | 971 | | | | | | 749 | | | | | | 2,280 | | | | | | — | | | | | | 15,187 | | | | | | 386 | | | | | | 7 | | | | | | 19,580 | | |
3 – Standard | | | | | 10,530 | | | | | | 11,262 | | | | | | 94,357 | | | | | | 4,296 | | | | | | 56,493 | | | | | | 1,250 | | | | | | 469 | | | | | | 178,657 | | |
4 – Acceptable | | | | | 9,297 | | | | | | 33,832 | | | | | | 103,740 | | | | | | 31,431 | | | | | | 50,226 | | | | | | 3,170 | | | | | | 757 | | | | | | 232,453 | | |
5 – Special Mention
|
| | | | 304 | | | | | | 2,486 | | | | | | 4,444 | | | | | | 170 | | | | | | 5,231 | | | | | | 59 | | | | | | — | | | | | | 12,694 | | |
6 – Substandard or
worse(1) |
| | | | 119 | | | | | | 2,181 | | | | | | 3,916 | | | | | | 721 | | | | | | 1,305 | | | | | | — | | | | | | 24 | | | | | | 8,266 | | |
| | | | $ | 23,163 | | | | | $ | 50,510 | | | | | $ | 208,737 | | | | | $ | 36,618 | | | | | $ | 128,442 | | | | | $ | 6,638 | | | | | $ | 1,257 | | | | | $ | 455,365 | | |
|
| | |
December 31, 2016
|
| |
December 31, 2015
|
| ||||||||||||||||||
| | |
Consumer –
Credit Card |
| |
Business –
Credit Card |
| |
Consumer –
Credit Card |
| |
Business –
Credit Card |
| ||||||||||||
Performing | | | | $ | 2,095 | | | | | $ | 1,214 | | | | | $ | 2,211 | | | | | $ | 1,133 | | |
Nonperforming | | | | | 19 | | | | | | 21 | | | | | | 29 | | | | | | 35 | | |
| | | | $ | 2,114 | | | | | $ | 1,235 | | | | | $ | 2,240 | | | | | $ | 1,168 | | |
|
| | |
December 31, 2016
|
| |||||||||||||||||||||||||||||||||
| | |
30 – 89
Days Past Due |
| |
Nonaccrual
|
| |
90 Days or
More Past Due |
| |
Total Past
Due |
| |
Current
|
| |
Total
Loans |
| ||||||||||||||||||
Commercial & industrial
|
| | | $ | — | | | | | $ | 36 | | | | | $ | — | | | | | $ | 36 | | | | | $ | 21,706 | | | | | $ | 21,742 | | |
Commercial construction & land development
|
| | | | 89 | | | | | | 691 | | | | | | — | | | | | | 780 | | | | | | 45,334 | | | | | | 46,114 | | |
Commercial real estate
|
| | | | 10 | | | | | | 2,153 | | | | | | — | | | | | | 2,163 | | | | | | 250,923 | | | | | | 253,086 | | |
Residential construction
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 42,660 | | | | | | 42,660 | | |
Residential mortgage
|
| | | | 295 | | | | | | 1,444 | | | | | | — | | | | | | 1,739 | | | | | | 131,232 | | | | | | 132,971 | | |
Consumer | | | | | 42 | | | | | | — | | | | | | — | | | | | | 42 | | | | | | 6,854 | | | | | | 6,896 | | |
Consumer credit cards
|
| | | | 48 | | | | | | — | | | | | | 19 | | | | | | 67 | | | | | | 2,047 | | | | | | 2,114 | | |
Business credit cards
|
| | | | 9 | | | | | | — | | | | | | 21 | | | | | | 30 | | | | | | 1,205 | | | | | | 1,235 | | |
Other loans
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 502 | | | | | | 502 | | |
Total
|
| | | $ | 493 | | | | | $ | 4,324 | | | | | $ | 40 | | | | | $ | 4,857 | | | | | $ | 502,463 | | | | | $ | 507,320 | | |
|
| | |
December 31, 2015
|
| |||||||||||||||||||||||||||||||||
| | |
30 – 89
Days Past Due |
| |
Nonaccrual
|
| |
90 Days or
More Past Due |
| |
Total Past
Due |
| |
Current
|
| |
Total
Loans |
| ||||||||||||||||||
Commercial & industrial
|
| | | $ | 56 | | | | | $ | 119 | | | | | $ | — | | | | | $ | 175 | | | | | $ | 22,988 | | | | | $ | 23,163 | | |
Commercial construction & land development
|
| | | | 211 | | | | | | 1,626 | | | | | | — | | | | | | 1,837 | | | | | | 48,673 | | | | | | 50,510 | | |
Commercial real estate
|
| | | | — | | | | | | 2,929 | | | | | | — | | | | | | 2,929 | | | | | | 205,808 | | | | | | 208,737 | | |
Residential construction
|
| | | | 133 | | | | | | 721 | | | | | | — | | | | | | 854 | | | | | | 35,764 | | | | | | 36,618 | | |
Residential mortgage
|
| | | | 499 | | | | | | 1,203 | | | | | | — | | | | | | 1,702 | | | | | | 126,740 | | | | | | 128,442 | | |
Consumer | | | | | 71 | | | | | | — | | | | | | — | | | | | | 71 | | | | | | 6,567 | | | | | | 6,638 | | |
Consumer credit cards
|
| | | | 95 | | | | | | — | | | | | | 29 | | | | | | 124 | | | | | | 2,116 | | | | | | 2,240 | | |
Business credit cards
|
| | | | 107 | | | | | | — | | | | | | 36 | | | | | | 143 | | | | | | 1,025 | | | | | | 1,168 | | |
Other loans
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,257 | | | | | | 1,257 | | |
Total
|
| | | $ | 1,172 | | | | | $ | 6,598 | | | | | $ | 65 | | | | | $ | 7,835 | | | | | $ | 450,938 | | | | | $ | 458,773 | | |
|
| | |
December 31, 2016
|
| |||||||||||||||||||||||||||
| | |
Recorded
Investment |
| |
Unpaid
Principal Balance |
| |
Related
Allowance |
| |
Average
Recorded Investment |
| |
Interest
Income Recognized |
| |||||||||||||||
With no related allowance recorded:
|
| | | | | | |||||||||||||||||||||||||
Commercial and industrial
|
| | | $ | 18 | | | | | $ | 19 | | | | | $ | — | | | | | $ | 21 | | | | | $ | — | | |
Commercial construction & land development
|
| | | | 53 | | | | | | 60 | | | | | | — | | | | | | 58 | | | | | | — | | |
Commercial real estate
|
| | | | 1,131 | | | | | | 1,660 | | | | | | — | | | | | | 1,189 | | | | | | 50 | | |
Residential mortgage
|
| | | | 1,804 | | | | | | 1,882 | | | | | | — | | | | | | 1,881 | | | | | | 37 | | |
Subtotal:
|
| | | $ | 3,006 | | | | | $ | 3,621 | | | | | $ | — | | | | | $ | 3,149 | | | | | $ | 87 | | |
With an allowance recorded: | | | | | | | |||||||||||||||||||||||||
Commercial and industrial
|
| | | $ | 18 | | | | | $ | 18 | | | | | $ | 2 | | | | | $ | 17 | | | | | $ | — | | |
Commercial construction & land development
|
| | | | 638 | | | | | | 763 | | | | | | 420 | | | | | | 660 | | | | | | 11 | | |
Commercial real estate
|
| | | | 1,736 | | | | | | 1,739 | | | | | | 529 | | | | | | 1,741 | | | | | | 36 | | |
Residential mortgage
|
| | | | 164 | | | | | | 208 | | | | | | 56 | | | | | | 191 | | | | | | 13 | | |
Subtotal:
|
| | | $ | 2,556 | | | | | $ | 2,728 | | | | | $ | 1,007 | | | | | $ | 2,609 | | | | | $ | 60 | | |
Totals: | | | | | | | |||||||||||||||||||||||||
Commercial | | | | $ | 3,594 | | | | | $ | 4,259 | | | | | $ | 951 | | | | | $ | 3,686 | | | | | $ | 97 | | |
Residential | | | | | 1,968 | | | | | | 2,090 | | | | | | 56 | | | | | | 2,072 | | | | | | 50 | | |
Grand Total
|
| | | $ | 5,562 | | | | | $ | 6,349 | | | | | $ | 1,007 | | | | | $ | 5,758 | | | | | $ | 147 | | |
|
| | |
December 31, 2015
|
| |||||||||||||||||||||||||||
| | |
Recorded
Investment |
| |
Unpaid
Principal Balance |
| |
Related
Allowance |
| |
Average
Recorded Investment |
| |
Interest
Income Recognized |
| |||||||||||||||
With no related allowance recorded:
|
| | | | | | |||||||||||||||||||||||||
Commercial and industrial
|
| | | $ | 67 | | | | | $ | 67 | | | | | $ | — | | | | | $ | 63 | | | | | $ | 3 | | |
Commercial construction & land development
|
| | | | 737 | | | | | | 1,706 | | | | | | — | | | | | | 1,031 | | | | | | 19 | | |
Commercial real estate
|
| | | | 2,258 | | | | | | 2,614 | | | | | | — | | | | | | 2,020 | | | | | | 50 | | |
Residential construction
|
| | | | 721 | | | | | | 722 | | | | | | — | | | | | | 408 | | | | | | 8 | | |
Residential mortgage
|
| | | | 1,305 | | | | | | 1,312 | | | | | | — | | | | | | 1,191 | | | | | | 51 | | |
Subtotal:
|
| | | $ | 5,088 | | | | | $ | 6,421 | | | | | $ | — | | | | | $ | 4,713 | | | | | $ | 131 | | |
With an allowance recorded: | | | | | | | |||||||||||||||||||||||||
Commercial and industrial
|
| | | $ | 52 | | | | | $ | 63 | | | | | $ | 7 | | | | | $ | 58 | | | | | $ | 4 | | |
Commercial construction & land development
|
| | | | 1,948 | | | | | | 3,020 | | | | | | 1,006 | | | | | | 2,086 | | | | | | 122 | | |
Commercial real estate
|
| | | | 1,699 | | | | | | 1,699 | | | | | | 228 | | | | | | 1,713 | | | | | | 79 | | |
Residential mortgage
|
| | | | 139 | | | | | | 217 | | | | | | 20 | | | | | | 183 | | | | | | 8 | | |
Subtotal:
|
| | | $ | 3,838 | | | | | $ | 4,999 | | | | | $ | 1,261 | | | | | $ | 4,040 | | | | | $ | 213 | | |
Totals: | | | | | | | |||||||||||||||||||||||||
Commercial | | | | $ | 6,761 | | | | | $ | 9,169 | | | | | $ | 1,241 | | | | | $ | 6,971 | | | | | $ | 277 | | |
Residential | | | | | 2,165 | | | | | | 2,251 | | | | | | 20 | | | | | | 1,782 | | | | | | 67 | | |
Grand Total:
|
| | | $ | 8,926 | | | | | $ | 11,420 | | | | | $ | 1,261 | | | | | $ | 8,753 | | | | | $ | 344 | | |
|
| | |
For the Year Ended
December 31, 2016 |
| |||||||||||||||
| | |
Number of loans
|
| |
Pre-Modification
Outstanding Recorded Investment |
| |
Post-Modification
Outstanding Recorded Investment |
| |||||||||
Extended payment terms: | | | | | |||||||||||||||
Commercial & industrial
|
| | | | 3 | | | | | $ | 27 | | | | | $ | 24 | | |
Commercial real estate
|
| | | | 2 | | | | | | 591 | | | | | | 587 | | |
Residential mortgage
|
| | | | 1 | | | | | | 260 | | | | | | 260 | | |
Subtotal
|
| | | | 6 | | | | | $ | 878 | | | | | $ | 871 | | |
Other: | | | | | |||||||||||||||
Residential mortgage
|
| | | | 1 | | | | | $ | 126 | | | | | $ | 121 | | |
Subtotal
|
| | | | 1 | | | | | $ | 126 | | | | | $ | 121 | | |
Total
|
| | | | 7 | | | | | $ | 1,004 | | | | | $ | 992 | | |
|
| | |
December 31, 2016
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Paid in full
|
| |
Paying as restructured
|
| |
Converted to
non-accrual |
| |
Foreclosure/Default
|
| ||||||||||||||||||||||||||||||||||||
| | |
Number of
loans |
| |
Recorded
Investment |
| |
Number of
loans |
| |
Recorded
Investment |
| |
Number of
loans |
| |
Recorded
Investment |
| |
Number of
loans |
| |
Recorded
Investment |
| ||||||||||||||||||||||||
Extended payment terms
|
| | | | — | | | | | $ | — | | | | | | 6 | | | | | $ | 871 | | | | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | |
Other | | | | | — | | | | | | — | | | | | | 1 | | | | | | 121 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | | — | | | | | $ | — | | | | | | 7 | | | | | $ | 992 | | | | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | |
|
| | |
December 31, 2016
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | |
Real Estate
|
| | | | ||||||||||||||||||||||||||||||||||||
| | |
Commercial
and Industrial |
| |
Commercial
construction and land development |
| |
Commercial
real estate |
| |
Residential
construction |
| |
Residential
mortgage |
| |
Consumer
|
| |
Other
|
| |
Totals
|
| ||||||||||||||||||||||||
Allowances for loan losses: | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period
|
| | | $ | 221 | | | | | $ | 5,470 | | | | | $ | 2,268 | | | | | $ | 305 | | | | | $ | 1,191 | | | | | $ | 113 | | | | | $ | 48 | | | | | $ | 9,616 | | |
Provision for loan losses
|
| | | | (187) | | | | | | (1,114) | | | | | | 1,474 | | | | | | (68) | | | | | | (138) | | | | | | 33 | | | | | | — | | | | | | — | | |
Loans charged-off
|
| | | | (73) | | | | | | (229) | | | | | | (565) | | | | | | — | | | | | | (45) | | | | | | (161) | | | | | | (9) | | | | | | (1,082) | | |
Recoveries
|
| | | | 97 | | | | | | 788 | | | | | | 21 | | | | | | 21 | | | | | | 70 | | | | | | 113 | | | | | | 3 | | | | | | 1,113 | | |
Net recoveries (charge-offs)
|
| | | | 24 | | | | | | 559 | | | | | | (544) | | | | | | 21 | | | | | | 25 | | | | | | (48) | | | | | | (6) | | | | | | 31 | | |
Balance, end of period
|
| | | $ | 58 | | | | | $ | 4,915 | | | | | $ | 3,198 | | | | | $ | 258 | | | | | $ | 1,078 | | | | | $ | 98 | | | | | $ | 42 | | | | | $ | 9,647 | | |
Ending balance: individually evaluated for impairment
|
| | | $ | — | | | | | $ | 415 | | | | | $ | 530 | | | | | $ | — | | | | | $ | 39 | | | | | $ | — | | | | | $ | — | | | | | $ | 984 | | |
Ending balance: collectively evaluated for impairment(1)
|
| | | $ | 58 | | | | | $ | 4,500 | | | | | $ | 2,668 | | | | | $ | 258 | | | | | $ | 1,039 | | | | | $ | 98 | | | | | $ | 42 | | | | | $ | 8,663 | | |
Loans: | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
Balance, end of period
|
| | | $ | 22,977 | | | | | $ | 46,114 | | | | | $ | 253,086 | | | | | $ | 42,660 | | | | | $ | 132,971 | | | | | $ | 9,010 | | | | | $ | 502 | | | | | $ | 507,320 | | |
Ending balance: individually evaluated for impairment
|
| | | $ | 24 | | | | | $ | 652 | | | | | $ | 2,866 | | | | | $ | — | | | | | $ | 1,844 | | | | | $ | — | | | | | $ | — | | | | | $ | 5,386 | | |
Ending balance: collectively evaluated for impairment(1)
|
| | | $ | 22,953 | | | | | $ | 45,462 | | | | | $ | 250,220 | | | | | $ | 42,660 | | | | | $ | 131,127 | | | | | $ | 9,010 | | | | | $ | 502 | | | | | $ | 501,934 | | |
| | |
December 31, 2015
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | |
Real Estate
|
| | | | ||||||||||||||||||||||||||||||||||||
| | |
Commercial
and Industrial |
| |
Commercial
construction and land development |
| |
Commercial
real estate |
| |
Residential
construction |
| |
Residential
mortgage |
| |
Consumer
|
| |
Other
|
| |
Totals
|
| ||||||||||||||||||||||||
Allowances for loan losses: | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period
|
| | | $ | 119 | | | | | $ | 5,105 | | | | | $ | 2,382 | | | | | $ | 436 | | | | | $ | 1,206 | | | | | $ | 89 | | | | | $ | 40 | | | | | $ | 9,377 | | |
Provision for loan losses
|
| | | | (58) | | | | | | (615) | | | | | | 71 | | | | | | (90) | | | | | | 497 | | | | | | 121 | | | | | | 74 | | | | | | — | | |
Loans charged-off
|
| | | | (74) | | | | | | (196) | | | | | | (578) | | | | | | (41) | | | | | | (713) | | | | | | (210) | | | | | | (69) | | | | | | (1,881) | | |
Recoveries
|
| | | | 234 | | | | | | 1,176 | | | | | | 393 | | | | | | — | | | | | | 201 | | | | | | 113 | | | | | | 3 | | | | | | 2,120 | | |
Net recoveries (charge-offs)
|
| | | | 160 | | | | | | 980 | | | | | | (185) | | | | | | (41) | | | | | | (512) | | | | | | (97) | | | | | | (66) | | | | | | 239 | | |
Balance, end of period
|
| | | $ | 221 | | | | | $ | 5,470 | | | | | $ | 2,268 | | | | | $ | 305 | | | | | $ | 1,191 | | | | | $ | 113 | | | | | $ | 48 | | | | | $ | 9,616 | | |
Ending balance: individually evaluated
for impairment |
| | | $ | 2 | | | | | $ | 989 | | | | | $ | 228 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1,219 | | |
Ending balance: collectively evaluated
for impairment(1) |
| | | $ | 219 | | | | | $ | 4,481 | | | | | $ | 2,040 | | | | | $ | 305 | | | | | $ | 1,191 | | | | | $ | 113 | | | | | $ | 48 | | | | | $ | 8,397 | | |
Loans: | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
Balance, end of period
|
| | | $ | 24,331 | | | | | $ | 50,510 | | | | | $ | 208,737 | | | | | $ | 36,618 | | | | | $ | 128,442 | | | | | $ | 8,878 | | | | | $ | 1,257 | | | | | $ | 458,773 | | |
Ending balance: individually evaluated
for impairment |
| | | $ | 84 | | | | | $ | 2,564 | | | | | $ | 3,957 | | | | | $ | 721 | | | | | $ | 1,305 | | | | | $ | — | | | | | $ | — | | | | | $ | 8,631 | | |
Ending balance: collectively evaluated
for impairment(1) |
| | | $ | 24,247 | | | | | $ | 47,946 | | | | | $ | 204,780 | | | | | $ | 35,897 | | | | | $ | 127,137 | | | | | $ | 8,878 | | | | | $ | 1,257 | | | | | $ | 450,142 | | |
| | |
2016
|
| |
2015
|
| ||||||
Land | | | | $ | 2,564 | | | | | $ | 4,394 | | |
Buildings and leasehold improvements
|
| | | | 11,837 | | | | | | 11,312 | | |
Furniture and equipment
|
| | | | 4,691 | | | | | | 5,182 | | |
Construction in process
|
| | | | — | | | | | | 1,467 | | |
| | | | | 19,092 | | | | | | 22,355 | | |
Less accumulated depreciation
|
| | | | (9,248) | | | | | | (10,062) | | |
| | | | $ | 9,844 | | | | | $ | 12,293 | | |
|
| | |
Less than
$250,000 |
| |
$250,000
or more |
| |
Total
|
| |||||||||
2017 | | | | $ | 101,946 | | | | | $ | 15,546 | | | | | $ | 117,492 | | |
2018 | | | | | 43,423 | | | | | | 4,909 | | | | | | 48,332 | | |
2019 | | | | | 9,278 | | | | | | 3,327 | | | | | | 12,605 | | |
2020 | | | | | 6,787 | | | | | | 3,438 | | | | | | 10,225 | | |
2021 | | | | | 9,843 | | | | | | 2,297 | | | | | | 12,140 | | |
2022 and beyond
|
| | | | 241 | | | | | | 250 | | | | | | 491 | | |
Total time deposits
|
| | | $ | 171,518 | | | | | $ | 29,767 | | | | | $ | 201,285 | | |
|
Origination Date
|
| |
Maturity Date
|
| |
Interest Rate
|
| |
December 31,
2016 |
| ||||||||||||
February 4, 2008
|
| | February 5, 2018 | | | | | 2.06% | | | | | | Fixed | | | | | $ | 10,000 | | |
June 5, 2008
|
| | June 5, 2018 | | | | | 2.25% | | | | | | Fixed | | | | | | 5,000 | | |
June 5, 2008
|
| | June 5, 2018 | | | | | 2.55% | | | | | | Fixed | | | | | | 5,000 | | |
September 18, 2008
|
| | September 18, 2018 | | | | | 2.71% | | | | | | Fixed | | | | | | 10,000 | | |
February 10, 2016
|
| | August 9, 2017 | | | | | 0.73% | | | | | | Fixed | | | | | | 10,000 | | |
April 29, 2016(1)
|
| | April 29, 2019 | | | | | 2.54% | | | | | | Fixed | | | | | | 5,000 | | |
April 29, 2016(1)
|
| | April 29, 2019 | | | | | 2.62% | | | | | | Fixed | | | | | | 5,000 | | |
April 29, 2016(1)
|
| | April 29, 2019 | | | | | 2.83% | | | | | | Fixed | | | | | | 10,000 | | |
May 25, 2016
|
| | May 25, 2018 | | | | | 1.13% | | | | | | Fixed | | | | | | 10,000 | | |
| | | | | | | | | | | | | | | | | | | $ | 70,000 | | |
|
Origination Date
|
| |
Maturity Date
|
| |
Interest Rate
|
| |
December 31,
2015 |
| ||||||||||||
August 13, 2007
|
| | August 14, 2017 | | | | | 3.94% | | | | | | Fixed | | | | | $ | 5,000 | | |
February 4, 2008
|
| | February 5, 2018 | | | | | 2.06% | | | | | | Fixed | | | | | | 10,000 | | |
June 5, 2008
|
| | June 5, 2018 | | | | | 2.25% | | | | | | Fixed | | | | | | 5,000 | | |
June 5, 2008
|
| | June 5, 2018 | | | | | 2.55% | | | | | | Fixed | | | | | | 5,000 | | |
June 5, 2008
|
| | June 5, 2018 | | | | | 3.03% | | | | | | Fixed | | | | | | 5,000 | | |
September 9, 2008
|
| | September 10, 2018 | | | | | 3.14% | | | | | | Fixed | | | | | | 10,000 | | |
September 18, 2008
|
| | September 18, 2018 | | | | | 2.71% | | | | | | Fixed | | | | | | 10,000 | | |
December 21, 2015
|
| | February 22, 2016 | | | | | 0.48% | | | | | | Fixed | | | | | | 10,000 | | |
| | | | | | | | | | | | | | | | | | | $ | 60,000 | | |
|
| | |
Years Ended December 31,
|
| |||||||||
| | |
2016
|
| |
2015
|
| ||||||
Current tax expense (benefit): | | | | ||||||||||
Federal
|
| | | $ | 110 | | | | | $ | 34 | | |
State
|
| | | | — | | | | | | — | | |
| | | | | 110 | | | | | | 34 | | |
Deferred tax expense (benefit): | | | | ||||||||||
Federal
|
| | | | (954) | | | | | | (15,184) | | |
State
|
| | | | (724) | | | | | | (1,330) | | |
| | | | | (1,678) | | | | | | (16,514) | | |
Income tax benefit
|
| | | $ | (1,568) | | | | | $ | (16,480) | | |
|
| | |
Years Ended December 31,
|
| |||||||||
| | |
2016
|
| |
2015
|
| ||||||
Expense computed at statutory rate of 34%
|
| | | $ | 1,800 | | | | | $ | 1,200 | | |
Effect of state income taxes, net of federal benefit
|
| | | | (1,006) | | | | | | (790) | | |
Tax exempt income
|
| | | | (28) | | | | | | (19) | | |
Bank owned life insurance income
|
| | | | (72) | | | | | | (64) | | |
Valuation allowance
|
| | | | (2,287) | | | | | | (16,819) | | |
Other, net
|
| | | | 25 | | | | | | 12 | | |
| | | | $ | (1,568) | | | | | $ | (16,480) | | |
|
| | |
Years Ended December 31,
|
| |||||||||
| | |
2016
|
| |
2015
|
| ||||||
Deferred tax assets: | | | | ||||||||||
Allowance for loan losses
|
| | | $ | 3,471 | | | | | $ | 3,523 | | |
Restricted stock and stock options
|
| | | | 255 | | | | | | 240 | | |
OTTI
|
| | | | 184 | | | | | | 188 | | |
Net deferred loan fees
|
| | | | 114 | | | | | | 169 | | |
Net operating loss
|
| | | | 13,217 | | | | | | 14,901 | | |
SERP accrual
|
| | | | 147 | | | | | | 186 | | |
Other
|
| | | | 1,111 | | | | | | 1,335 | | |
Unrealized gain on securities
|
| | | | 9 | | | | | | 165 | | |
Total deferred tax assets
|
| | | | 18,508 | | | | | | 20,707 | | |
Less valuation allowance
|
| | | | (87) | | | | | | (3,765) | | |
Net deferred tax assets
|
| | | | 18,421 | | | | | | 16,942 | | |
Deferred tax liabilities: | | | | ||||||||||
Property and equipment
|
| | | $ | 95 | | | | | $ | 133 | | |
Prepaid expense
|
| | | | 76 | | | | | | 80 | | |
Other
|
| | | | 49 | | | | | | 50 | | |
Total deferred tax liabilities
|
| | | | 220 | | | | | | 263 | | |
Net deferred tax asset
|
| | | $ | 18,201 | | | | | $ | 16,679 | | |
|
| | |
Actual Ratio
|
| |
Minimum For Capital
Adequacy Purposes |
| |
Minimum To be Well
Capitalized under Prompt Corrective Action Provisions |
| |||||||||||||||
| | |
12/31/2016
|
| |
12/31/2015
|
| |
Ratio
|
| |
Ratio
|
| ||||||||||||
Bank | | | | | | ||||||||||||||||||||
Total Capital (to Risk Weighted Assets)
|
| | | | 15.4% | | | | | | 15.6% | | | | | | 8.0% | | | | | | 10.0% | | |
Tier I Capital (to Risk Weighted Assets)
|
| | | | 14.1% | | | | | | 14.4% | | | | | | 6.0% | | | | | | 8.0% | | |
Common Equity Tier 1 Capital (to Risk Weighted Assets)
|
| | | | 14.1% | | | | | | 14.4% | | | | | | 4.5% | | | | | | 6.5% | | |
Tier I Capital (to Average Assets)
|
| | | | 11.0% | | | | | | 10.2% | | | | | | 4.0% | | | | | | 5.0% | | |
Company | | | | | | ||||||||||||||||||||
Total Capital (to Risk Weighted Assets)
|
| | | | 15.6% | | | | | | 16.0% | | | | | | 8.0% | | | | | | N/A | | |
Tier I Capital (to Risk Weighted Assets)
|
| | | | 12.2% | | | | | | 12.4% | | | | | | 6.0% | | | | | | N/A | | |
Common Equity Tier 1 Capital (to Risk Weighted Assets)
|
| | | | 10.9% | | | | | | 11.3% | | | | | | 4.5% | | | | | | N/A | | |
Tier I Capital (to Average Assets)
|
| | | | 9.5% | | | | | | 8.8% | | | | | | 4.0% | | | | | | N/A | | |
| | |
2016
|
| |
2015
|
| ||||||
Commitments to extend credit
|
| | | $ | 21,118 | | | | | $ | 29,354 | | |
Undisbursed lines of credit
|
| | | | 97,358 | | | | | | 94,241 | | |
Financial stand-by letters of credit
|
| | | | 439 | | | | | | 438 | | |
Performance stand-by letters of credit
|
| | | | 422 | | | | | | 233 | | |
Legally binding commitments
|
| | | | 119,337 | | | | | | 124,266 | | |
Unused credit card lines
|
| | | | 16,624 | | | | | | 15,982 | | |
Total | | | | $ | 135,961 | | | | | $ | 140,248 | | |
|
| | |
Fair Value Measurements at December 31, 2016, Using
|
| |||||||||||||||||||||||||||
Available-for-Sale Securities:
|
| |
Total Carrying
Amount in the Consolidated Balance Sheet |
| |
Assets Measured
at Fair Value |
| |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
| |
Significant Other
Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| |||||||||||||||
Taxable municipal securities
|
| | | $ | 20,049 | | | | | $ | 20,049 | | | | | $ | — | | | | | $ | 20,049 | | | | | $ | — | | |
Mortgage-backed securities: | | | | | | | |||||||||||||||||||||||||
GNMA
|
| | | | 11,680 | | | | | | 11,680 | | | | | | — | | | | | | 11,680 | | | | | | — | | |
FNMA & FHLMC
|
| | | | 25,412 | | | | | | 25,412 | | | | | | — | | | | | | 25,412 | | | | | | — | | |
Other debt securities
|
| | | | 1,000 | | | | | | 1,000 | | | | | | — | | | | | | — | | | | | | 1,000 | | |
Total available-for-sale securities
|
| | | $ | 58,141 | | | | | $ | 58,141 | | | | | $ | — | | | | | $ | 57,141 | | | | | $ | 1,000 | | |
|
| | |
Fair Value Measurements at December 31, 2015 Using
|
| |||||||||||||||||||||||||||
Available-for-Sale Securities:
|
| |
Total Carrying
Amount in the Consolidated Balance Sheet |
| |
Assets Measured
at Fair Value |
| |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
| |
Significant Other
Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| |||||||||||||||
Taxable municipal securities
|
| | | $ | 24,567 | | | | | $ | 24,567 | | | | | $ | — | | | | | $ | 24,567 | | | | | $ | — | | |
Mortgage-backed securities: | | | | | | | |||||||||||||||||||||||||
GNMA
|
| | | | 13,530 | | | | | | 13,530 | | | | | | — | | | | | | 13,530 | | | | | | — | | |
FNMA & FHLMC
|
| | | | 31,673 | | | | | | 31,673 | | | | | | — | | | | | | 31,673 | | | | | | — | | |
Other debt securities
|
| | | | 500 | | | | | | 500 | | | | | | — | | | | | | — | | | | | | 500 | | |
Equity securities
|
| | | | 11 | | | | | | 11 | | | | | | — | | | | | | 11 | | | | | | — | | |
Total available-for-sale securities
|
| | | $ | 70,281 | | | | | $ | 70,281 | | | | | $ | — | | | | | $ | 69,781 | | | | | $ | 500 | | |
|
| | |
Available-for-Sale Securities
|
| |||||||||
| | |
2016
|
| |
2015
|
| ||||||
Beginning Balance
|
| | | $ | 500 | | | | | $ | — | | |
Purchases, issuances and settlements
|
| | | | 500 | | | | | | 500 | | |
Ending Balance
|
| | | $ | 1,000 | | | | | $ | 500 | | |
|
| | |
Fair Value Measurements at December 31, 2016, Using
|
| |||||||||||||||||||||||||||
Description
|
| |
Total Carrying
Amount in the Consolidated Balance Sheet |
| |
Assets Measured
at Fair Value |
| |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
| |
Significant Other
Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| |||||||||||||||
Loans held for sale
|
| | | $ | 206 | | | | | $ | 206 | | | | | $ | — | | | | | $ | 206 | | | | | $ | — | | |
Impaired loans
|
| | | | 2,179 | | | | | | 2,179 | | | | | | — | | | | | | — | | | | | | 2,179 | | |
Foreclosed assets
|
| | | | 1,682 | | | | | | 1,682 | | | | | | — | | | | | | — | | | | | | 1,682 | | |
Premises and equipment held for sale
|
| | | | 2,373 | | | | | | 2,373 | | | | | | — | | | | | | — | | | | | | 2,373 | | |
| | |
Fair Value Measurements at December 31, 2015, Using
|
| |||||||||||||||||||||||||||
Description
|
| |
Total Carrying
Amount in the Consolidated Balance Sheet |
| |
Assets Measured
at Fair Value |
| |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
| |
Significant Other
Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| |||||||||||||||
Loans held for sale
|
| | | $ | 1,145 | | | | | $ | 1,145 | | | | | $ | — | | | | | $ | 1,145 | | | | | $ | — | | |
Impaired loans
|
| | | | 3,288 | | | | | | 3,288 | | | | | | — | | | | | | — | | | | | | 3,288 | | |
Foreclosed assets
|
| | | | 1,760 | | | | | | 1,760 | | | | | | — | | | | | | — | | | | | | 1,760 | | |
| | |
Total Carrying Amount
at December 31, 2016 |
| |
Valuation Methodology
|
| |
Range of Inputs
|
| |||
Recurring measurements: | | | | | |||||||||
Other debt securities
|
| | | $ | 1,000 | | | |
Probability of default
|
| |
0%
|
|
| | | | | | | | | Loss given default | | |
100%
|
|
Nonrecurring measurements: | | | | | |||||||||
Impaired loans
|
| | | $ | 2,179 | | | | Collateral discounts | | |
9 – 50%
|
|
Foreclosed assets
|
| | | $ | 1,682 | | | |
Discounted appraisals
|
| |
10 – 30%
|
|
Premises and equipment held for sale
|
| | | $ | 2,373 | | | |
Discounted appraisals
|
| |
10 – 50%
|
|
Loan Segment:
|
| |
Range of
Percentages |
|
Commercial construction and land development
|
| |
10% – 40%
|
|
Commercial real estate
|
| |
9% – 50%
|
|
Residential construction
|
| |
9% – 30%
|
|
Residential mortgage
|
| |
9% – 20%
|
|
All other segments
|
| |
9% – 20%
|
|
| | |
December 31, 2016
|
| |||||||||||||||||||||||||||
| | |
Carrying
Value |
| |
Estimated Fair
Value |
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||||||||
Financial assets: | | | | | | | |||||||||||||||||||||||||
Cash and cash equivalents
|
| | | $ | 32,563 | | | | | $ | 32,563 | | | | | $ | 32,563 | | | | | $ | — | | | | | $ | — | | |
Certificates of deposit
|
| | | | 18,125 | | | | | | 18,125 | | | | | | — | | | | | | 18,125 | | | | | | — | | |
Securities available-for-sale
|
| | | | 58,141 | | | | | | 58,141 | | | | | | — | | | | | | 57,141 | | | | | | 1,000 | | |
Securities held-to-maturity
|
| | | | 51,205 | | | | | | 51,452 | | | | | | — | | | | | | 51,452 | | | | | | — | | |
Loans held for sale
|
| | | | 206 | | | | | | 206 | | | | | | — | | | | | | 206 | | | | | | — | | |
Loans, net
|
| | | | 497,357 | | | | | | 479,184 | | | | | | — | | | | | | — | | | | | | 479,184 | | |
FHLB stock
|
| | | | 3,596 | | | | | | 3,596 | | | | | | — | | | | | | 3,596 | | | | | | — | | |
Accrued interest receivable
|
| | | | 1,598 | | | | | | 1,598 | | | | | | — | | | | | | 1,598 | | | | | | — | | |
Financial liabilities: | | | | | | | |||||||||||||||||||||||||
Deposits
|
| | | $ | 553,531 | | | | | $ | 552,207 | | | | | $ | — | | | | | $ | 552,207 | | | | | $ | — | | |
Subordinated debentures and subordinated promissory notes
|
| | | | 23,872 | | | | | | 23,872 | | | | | | — | | | | | | — | | | | | | 23,872 | | |
Borrowings
|
| | | | 70,000 | | | | | | 70,896 | | | | | | — | | | | | | 70,896 | | | | | | — | | |
Accrued interest payable
|
| | | | 384 | | | | | | 384 | | | | | | — | | | | | | 384 | | | | | | — | | |
| | |
December 31, 2015
|
| |||||||||||||||||||||||||||
| | |
Carrying
Value |
| |
Estimated
Fair Value |
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||||||||
Financial assets: | | | | | | | |||||||||||||||||||||||||
Cash and cash equivalents
|
| | | $ | 26,755 | | | | | $ | 26,755 | | | | | $ | 26,755 | | | | | $ | — | | | | | $ | — | | |
Certificates of deposit
|
| | | | 23,520 | | | | | | 23,520 | | | | | | — | | | | | | 23,520 | | | | | | — | | |
Securities available-for-sale
|
| | | | 70,281 | | | | | | 70,281 | | | | | | — | | | | | | 69,781 | | | | | | 500 | | |
Securities held-to-maturity
|
| | | | 65,354 | | | | | | 65,633 | | | | | | — | | | | | | 65,633 | | | | | | — | | |
Loans held for sale
|
| | | | 1,145 | | | | | | 1,145 | | | | | | — | | | | | | 1,145 | | | | | | — | | |
Loans, net
|
| | | | 448,697 | | | | | | 423,285 | | | | | | — | | | | | | — | | | | | | 423,285 | | |
FHLB stock
|
| | | | 3,288 | | | | | | 3,288 | | | | | | — | | | | | | 3,288 | | | | | | — | | |
Accrued interest receivable
|
| | | | 1,594 | | | | | | 1,594 | | | | | | — | | | | | | 1,594 | | | | | | — | | |
Financial liabilities: | | | | | | | |||||||||||||||||||||||||
Deposits
|
| | | $ | 542,334 | | | | | $ | 541,818 | | | | | $ | — | | | | | $ | 541,818 | | | | | $ | — | | |
Subordinated debentures and subordinated promissory notes
|
| | | | 23,872 | | | | | | 23,872 | | | | | | — | | | | | | — | | | | | | 23,872 | | |
Borrowings
|
| | | | 60,000 | | | | | | 61,709 | | | | | | — | | | | | | 61,709 | | | | | | — | | |
Accrued interest payable
|
| | | | 437 | | | | | | 437 | | | | | | — | | | | | | 437 | | | | | | — | | |
| | |
Shares
|
| |
Option
Price Per Share |
| |
Weighted
Average Remaining Contractual Term (Years) |
| |
Aggregate
Intrinsic Value |
| ||||||||||||
Outstanding at January 1, 2016
|
| | | | 38,621 | | | | | $ | 21.68 | | | | | ||||||||||
Issued
|
| | | | — | | | | | | — | | | | | ||||||||||
Exercised
|
| | | | 2,825 | | | | | | 6.70 | | | | | ||||||||||
Forfeited
|
| | | | 3,840 | | | | | | 7.58 | | | | | ||||||||||
Expired
|
| | | | 8,215 | | | | | | 15.00 | | | | | | | | | | | | | | |
Balance at December 31, 2016
|
| | | | 23,741 | | | | | $ | 28.06 | | | | | | 1.22 | | | | | $ | 117,814 | | |
Exercisable at December 31, 2016
|
| | | | 23,741 | | | | | $ | 28.06 | | | | | | 1.22 | | | | | $ | 117,814 | | |
|
| | |
Shares
|
| |
Weighted average
grant date fair value |
| ||||||
Non-vested – December 31, 2015
|
| | | | 9,906 | | | | | $ | 5.13 | | |
Granted | | | | | — | | | | | | — | | |
Vested | | | | | 9,781 | | | | | | 5.13 | | |
Forfeited/Expired | | | | | 125 | | | | | | 5.13 | | |
Non-vested – December 31, 2016
|
| | | | — | | | | | $ | — | | |
|
Exercise Price
|
| |
Number
Outstanding |
| |
Contractual
Life (Years) |
| |
Number
Exercisable |
| |||||||||
5.75 – 8.49 | | | | | 6,085 | | | | | | 1.19 | | | | | | 6,085 | | |
8.50 – 203.94 | | | | | 15,195 | | | | | | 1.26 | | | | | | 15,195 | | |
203.95 | | | | | 2,461 | | | | | | 1.07 | | | | | | 2,461 | | |
| | | | | 23,741 | | | | | | 1.22 | | | | | | 23,741 | | |
|
| | |
Restricted Stock
|
| |
Weighted Average
Grant-Date Fair Value |
| ||||||
Unvested at December 31, 2015:
|
| | | | 272,635 | | | | | $ | 8.20 | | |
Granted
|
| | | | 42,000 | | | | | | 9.51 | | |
Vested
|
| | | | (37,865) | | | | | | 7.70 | | |
Forfeited
|
| | | | (18,700) | | | | | | 8.29 | | |
Unvested at December 31, 2016:
|
| | | | 258,070 | | | | | $ | 8.49 | | |
|
Leases
|
| | |||||
2017 | | | | $ | 249 | | |
2018 | | | | | 185 | | |
2019 | | | | | 178 | | |
2020 | | | | | 183 | | |
2021 | | | | | 187 | | |
2022 and beyond
|
| | | | 79 | | |
| | | | $ | 1,061 | | |
|
| | |
2016
|
| |
2015
|
| ||||||
Assets: | | | | ||||||||||
Cash and cash equivalents
|
| | | $ | 289 | | | | | $ | 1,362 | | |
Equity investment in subsidiaries
|
| | | | 88,997 | | | | | | 81,803 | | |
Investment securities available-for-sale
|
| | | | — | | | | | | 11 | | |
Other assets
|
| | | | 2,603 | | | | | | 1,128 | | |
Total Assets
|
| | | $ | 91,889 | | | | | $ | 84,304 | | |
Liabilities and Shareholders’ Equity: | | | | ||||||||||
Other liabilities
|
| | | $ | 12 | | | | | $ | 26 | | |
Subordinated debentures
|
| | | | 12,372 | | | | | | 12,372 | | |
Subordinated promissory notes
|
| | | | 11,500 | | | | | | 11,500 | | |
Shareholders’ equity
|
| | | | 68,005 | | | | | | 60,406 | | |
Total Liabilities and Shareholders’ Equity
|
| | | $ | 91,889 | | | | | $ | 84,304 | | |
|
| | |
For the Years Ended December 31,
|
| |||||||||
| | |
2016
|
| |
2015
|
| ||||||
Equity in undistributed income of subsidiaries
|
| | | $ | 6,642 | | | | | $ | 20,367 | | |
Interest income
|
| | | | 7 | | | | | | 27 | | |
Other income
|
| | | | 10 | | | | | | 11 | | |
Other expenses
|
| | | | (1,203) | | | | | | (1,408) | | |
Income before income taxes
|
| | | | 5,456 | | | | | | 18,997 | | |
Applicable income tax benefit
|
| | | | (1,402) | | | | | | (1,011) | | |
Net income
|
| | | $ | 6,858 | | | | | $ | 20,008 | | |
|
| | |
2016
|
| |
2015
|
| ||||||
Operating activities: | | | | ||||||||||
Net income
|
| | | $ | 6,858 | | | | | $ | 20,008 | | |
Equity in undistributed income of subsidiaries
|
| | | | (6,642) | | | | | | (20,367) | | |
Excess tax benefits from stock options
|
| | | | 2 | | | | | | — | | |
Increase in other assets
|
| | | | (1,405) | | | | | | (972) | | |
Decrease in other liabilities
|
| | | | (14) | | | | | | (910) | | |
Net cash used in operating activities
|
| | | | (1,201) | | | | | | (2,241) | | |
Investing activities: | | | | ||||||||||
Sales and maturities of securities
|
| | | | 11 | | | | | | — | | |
Net cash provided by investing activities
|
| | | | 11 | | | | | | — | | |
Financing activities: | | | | ||||||||||
Proceeds from issuance of common stock
|
| | | | 188 | | | | | | 170 | | |
Repayment of subordinated promissory notes
|
| | | | — | | | | | | (500) | | |
Shares withheld for payment of taxes
|
| | | | (71) | | | | | | (25) | | |
Net cash provided by (used in) financing activities
|
| | | | 117 | | | | | | (355) | | |
Net decrease in cash and cash equivalents
|
| | | | (1,073) | | | | | | (2,596) | | |
Cash and cash equivalents, beginning of year
|
| | | | 1,362 | | | | | | 3,958 | | |
Cash and cash equivalents, end of year
|
| | | $ | 289 | | | | | $ | 1,362 | | |
|
| | |
June 30, 2017
(Unaudited) |
| |
December 31, 2016
(*) |
| ||||||
ASSETS | | | | ||||||||||
Cash and due from banks
|
| | | $ | 19,415 | | | | | $ | 23,940 | | |
Interest-earning deposits
|
| | | | 32,863 | | | | | | 8,623 | | |
Cash and cash equivalents
|
| | | | 52,278 | | | | | | 32,563 | | |
Certificates of deposits held for investment
|
| | | | 15,190 | | | | | | 18,125 | | |
Investment securities available-for-sale, at fair value
|
| | | | 76,210 | | | | | | 58,141 | | |
Investment securities held-to-maturity, at amortized cost
|
| | | | 45,398 | | | | | | 51,205 | | |
Total investment securities
|
| | | | 121,608 | | | | | | 109,346 | | |
Loans held for sale
|
| | | | 2,497 | | | | | | 206 | | |
Loans | | | | | 497,761 | | | | | | 507,004 | | |
Allowance for loan losses
|
| | | | (9,654) | | | | | | (9,647) | | |
Net loans
|
| | | | 488,107 | | | | | | 497,357 | | |
Accrued interest receivable
|
| | | | 1,715 | | | | | | 1,598 | | |
Bank premises and equipment held for sale
|
| | | | 1,285 | | | | | | 2,373 | | |
Bank premises and equipment, net
|
| | | | 9,571 | | | | | | 9,844 | | |
FHLB stock
|
| | | | 4,046 | | | | | | 3,596 | | |
Investment in life insurance
|
| | | | 20,198 | | | | | | 19,987 | | |
Foreclosed assets
|
| | | | 1,381 | | | | | | 1,682 | | |
Deferred tax assets, net
|
| | | | 16,824 | | | | | | 18,201 | | |
Other assets
|
| | | | 5,131 | | | | | | 5,005 | | |
TOTAL ASSETS
|
| | | $ | 739,831 | | | | | $ | 719,883 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | ||||||||||
Deposits: | | | | ||||||||||
Noninterest-bearing demand
|
| | | $ | 164,989 | | | | | $ | 151,860 | | |
Money market, NOW accounts and savings accounts
|
| | | | 207,402 | | | | | | 200,386 | | |
Time deposits, $250,000 and over
|
| | | | 29,535 | | | | | | 29,767 | | |
Other time deposits
|
| | | | 158,226 | | | | | | 171,518 | | |
Total deposits
|
| | | | 560,152 | | | | | | 553,531 | | |
Borrowings | | | | | 80,000 | | | | | | 70,000 | | |
Subordinated debentures
|
| | | | 12,372 | | | | | | 12,372 | | |
Subordinated promissory notes
|
| | | | 11,500 | | | | | | 11,500 | | |
Accrued interest payable
|
| | | | 404 | | | | | | 384 | | |
Other liabilities
|
| | | | 4,087 | | | | | | 4,091 | | |
TOTAL LIABILITIES
|
| | | | 668,515 | | | | | | 651,878 | | |
Commitments and Contingencies (Note F) | | | | ||||||||||
Shareholders’ equity: | | | | ||||||||||
Common stock, $1.00 par value, 16,000,000 shares authorized; 6,771,359 and 6,757,047 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively(1)
|
| | | | 6,771 | | | | | | 6,757 | | |
Additional paid-in capital
|
| | | | 59,498 | | | | | | 58,976 | | |
Retained earnings
|
| | | | 4,738 | | | | | | 2,287 | | |
Accumulated other comprehensive income (loss)
|
| | | | 309 | | | | | | (15) | | |
Total shareholders’ equity
|
| | | | 71,316 | | | | | | 68,005 | | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
| | | $ | 739,831 | | | | | $ | 719,883 | | |
|
| | |
Three Months Ended
June 30, |
| |
Six Months Ended
June 30, |
| ||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2017
|
| |
2016
|
| ||||||||||||
Interest and dividend income: | | | | | | ||||||||||||||||||||
Loans, including fees
|
| | | $ | 6,555 | | | | | $ | 6,306 | | | | | $ | 13,316 | | | | | $ | 12,395 | | |
Taxable investments
|
| | | | 748 | | | | | | 776 | | | | | | 1,387 | | | | | | 1,616 | | |
Tax-exempt investments
|
| | | | 4 | | | | | | — | | | | | | 7 | | | | | | — | | |
Dividends and other investments
|
| | | | 96 | | | | | | 100 | | | | | | 187 | | | | | | 181 | | |
Interest-earning deposits
|
| | | | 134 | | | | | | 116 | | | | | | 246 | | | | | | 225 | | |
Total interest and dividend income
|
| | | | 7,537 | | | | | | 7,298 | | | | | | 15,143 | | | | | | 14,417 | | |
Interest expense: | | | | | | ||||||||||||||||||||
Deposits
|
| | | | 539 | | | | | | 592 | | | | | | 1,079 | | | | | | 1,193 | | |
Borrowings
|
| | | | 386 | | | | | | 366 | | | | | | 762 | | | | | | 744 | | |
Subordinated debentures
|
| | | | 79 | | | | | | 62 | | | | | | 152 | | | | | | 121 | | |
Subordinated promissory notes
|
| | | | 181 | | | | | | 217 | | | | | | 361 | | | | | | 399 | | |
Total interest expense
|
| | | | 1,185 | | | | | | 1,237 | | | | | | 2,354 | | | | | | 2,457 | | |
Net interest income
|
| | | | 6,352 | | | | | | 6,061 | | | | | | 12,789 | | | | | | 11,960 | | |
Provision for loan losses
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net interest income after provision for loan losses
|
| | | | 6,352 | | | | | | 6,061 | | | | | | 12,789 | | | | | | 11,960 | | |
Non-interest income: | | | | | | ||||||||||||||||||||
Service charges on deposit accounts
|
| | | | 373 | | | | | | 361 | | | | | | 741 | | | | | | 718 | | |
Other service charges, commissions and fees
|
| | | | 885 | | | | | | 896 | | | | | | 1,680 | | | | | | 1,647 | | |
Gains on sale of investment securities available-for-sale, net
|
| | | | — | | | | | | 266 | | | | | | — | | | | | | 266 | | |
Income from investment in life insurance
|
| | | | 113 | | | | | | 42 | | | | | | 211 | | | | | | 85 | | |
Other non-interest income
|
| | | | 257 | | | | | | 10 | | | | | | 320 | | | | | | 28 | | |
Total non-interest income
|
| | | | 1,628 | | | | | | 1,575 | | | | | | 2,952 | | | | | | 2,744 | | |
Non-interest expense: | | | | | | ||||||||||||||||||||
Salaries
|
| | | | 2,581 | | | | | | 2,755 | | | | | | 5,238 | | | | | | 5,348 | | |
Employee benefits
|
| | | | 567 | | | | | | 594 | | | | | | 1,242 | | | | | | 1,223 | | |
Occupancy expenses
|
| | | | 289 | | | | | | 335 | | | | | | 599 | | | | | | 671 | | |
Equipment expenses
|
| | | | 143 | | | | | | 142 | | | | | | 265 | | | | | | 290 | | |
Professional and consulting fees
|
| | | | 453 | | | | | | 683 | | | | | | 1,023 | | | | | | 1,223 | | |
Merger-related expenses
|
| | | | 524 | | | | | | — | | | | | | 524 | | | | | | — | | |
FDIC assessments
|
| | | | 70 | | | | | | 122 | | | | | | 157 | | | | | | 250 | | |
Collection and foreclosed asset-related costs, net
|
| | | | 37 | | | | | | 88 | | | | | | 84 | | | | | | 246 | | |
Other operating expenses
|
| | | | 1,291 | | | | | | 1,547 | | | | | | 2,743 | | | | | | 2,789 | | |
Total non-interest expense
|
| | | | 5,955 | | | | | | 6,266 | | | | | | 11,875 | | | | | | 12,040 | | |
Income before income taxes
|
| | | | 2,025 | | | | | | 1,370 | | | | | | 3,866 | | | | | | 2,664 | | |
Income tax expense
|
| | | | 702 | | | | | | 498 | | | | | | 1,355 | | | | | | 961 | | |
Net income
|
| | | $ | 1,323 | | | | | $ | 872 | | | | | $ | 2,511 | | | | | $ | 1,703 | | |
Basic net income per common share(1)
|
| | | $ | 0.20 | | | | | $ | 0.13 | | | | | $ | 0.38 | | | | | $ | 0.26 | | |
Diluted net income per common share(1)
|
| | | $ | 0.20 | | | | | $ | 0.13 | | | | | $ | 0.38 | | | | | $ | 0.26 | | |
Weighted Average Shares Outstanding, Basic(1)
|
| | | | 6,515,569 | | | | | | 6,486,792 | | | | | | 6,510,209 | | | | | | 6,470,743 | | |
Weighted Average Shares Outstanding, Diluted(1)
|
| | | | 6,661,505 | | | | | | 6,569,049 | | | | | | 6,652,512 | | | | | | 6,537,109 | | |
| | |
Three Months Ended
June 30, |
| |
Six Months Ended
June 30, |
| ||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2017
|
| |
2016
|
| ||||||||||||
Net income
|
| | | $ | 1,323 | | | | | $ | 872 | | | | | $ | 2,511 | | | | | $ | 1,703 | | |
Other comprehensive income: | | | | | | ||||||||||||||||||||
Securities available-for-sale:
|
| | | | | ||||||||||||||||||||
Unrealized holding gains on available-for-sale securities
|
| | | | 361 | | | | | | 1,112 | | | | | | 527 | | | | | | 2,661 | | |
Tax effect
|
| | | | (133) | | | | | | (309) | | | | | | (193) | | | | | | (877) | | |
Reclassification of gains recognized in net income
|
| | | | — | | | | | | (266) | | | | | | — | | | | | | (266) | | |
Tax effect
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Amortization of unrealized losses on investment securities transferred from available-for-sale to held-to-maturity
|
| | | | (6) | | | | | | (9) | | | | | | (15) | | | | | | (20) | | |
Tax effect
|
| | | | 2 | | | | | | 3 | | | | | | 5 | | | | | | 7 | | |
Total other comprehensive income
|
| | | | 224 | | | | | | 531 | | | | | | 324 | | | | | | 1,505 | | |
Comprehensive income
|
| | | $ | 1,547 | | | | | $ | 1,403 | | | | | $ | 2,835 | | | | | $ | 3,208 | | |
|
| | |
Common stock
|
| |
Additional
paid-in capital |
| |
Accumulated
deficit |
| |
Accumulated
other comprehensive (loss) income |
| |
Total
shareholders’ equity |
| |||||||||||||||||||||
| | |
Shares(1)
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2015
|
| | | | 6,719,162 | | | | | $ | 6,719 | | | | | $ | 58,543 | | | | | $ | (4,571) | | | | | $ | (285) | | | | | $ | 60,406 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,703 | | | | | | — | | | | | | 1,703 | | |
Other comprehensive income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,505 | | | | | | 1,505 | | |
Stock based compensation
|
| | | | — | | | | | | — | | | | | | 152 | | | | | | — | | | | | | — | | | | | | 152 | | |
Issuance of common stock
|
| | | | 19,338 | | | | | | 19 | | | | | | 140 | | | | | | — | | | | | | — | | | | | | 159 | | |
Excess income tax benefit
|
| | | | — | | | | | | — | | | | | | 1 | | | | | | — | | | | | | — | | | | | | 1 | | |
Issuance of restricted stock
|
| | | | 42,000 | | | | | | 42 | | | | | | (42) | | | | | | — | | | | | | — | | | | | | — | | |
Forfeiture of restricted stock
|
| | | | (17,000) | | | | | | (17) | | | | | | 17 | | | | | | — | | | | | | — | | | | | | — | | |
Stock withheld for payment of taxes
|
| | | | (7,498) | | | | | | (7) | | | | | | (64) | | | | | | — | | | | | | — | | | | | | (71) | | |
BALANCE, JUNE 30, 2016
|
| | | | 6,756,002 | | | | | $ | 6,756 | | | | | $ | 58,747 | | | | | $ | (2,868) | | | | | $ | 1,220 | | | | | $ | 63,855 | | |
|
| | |
Common stock
|
| |
Additional
paid-in capital |
| |
Retained
Earnings |
| |
Accumulated
other comprehensive (loss) income |
| |
Total
shareholders’ equity |
| |||||||||||||||||||||
| | |
Shares(1)
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2016
|
| | | | 6,757,047 | | | | | $ | 6,757 | | | | | $ | 58,976 | | | | | $ | 2,287 | | | | | $ | (15) | | | | | $ | 68,005 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 2,511 | | | | | | — | | | | | | 2,511 | | |
Other comprehensive income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 324 | | | | | | 324 | | |
Stock based compensation
|
| | | | — | | | | | | — | | | | | | 300 | | | | | | — | | | | | | — | | | | | | 300 | | |
Issuance of common stock
|
| | | | 21,112 | | | | | | 21 | | | | | | 192 | | | | | | — | | | | | | — | | | | | | 213 | | |
Excess income tax benefit
|
| | | | — | | | | | | — | | | | | | 23 | | | | | | — | | | | | | — | | | | | | 23 | | |
Forfeiture of restricted stock
|
| | | | (6,800) | | | | | | (7) | | | | | | 7 | | | | | | — | | | | | | — | | | | | | — | | |
Cash dividends of $0.01 per share
|
| | | | — | | | | | | — | | | | | | — | | | | | | (60) | | | | | | — | | | | | | (60) | | |
BALANCE, JUNE 30, 2017
|
| | | | 6,771,359 | | | | | $ | 6,771 | | | | | $ | 59,498 | | | | | $ | 4,738 | | | | | $ | 309 | | | | | $ | 71,316 | | |
|
| | |
Six Months Ended
June 30, |
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Cash flows from operating activities: | | | | ||||||||||
Net income
|
| | | $ | 2,511 | | | | | $ | 1,703 | | |
Adjustments to reconcile net income to net cash provided by operating activities:
|
| | | ||||||||||
Deferred income tax expense
|
| | | | 1,189 | | | | | | 887 | | |
Provision for depreciation and amortization
|
| | | | 330 | | | | | | 338 | | |
Net amortization of bond premiums and discounts
|
| | | | 375 | | | | | | 450 | | |
Stock based compensation
|
| | | | 300 | | | | | | 152 | | |
Excess tax benefits from stock options
|
| | | | 23 | | | | | | 1 | | |
Gain on sale of investment securities
|
| | | | — | | | | | | (266) | | |
(Gain) loss on disposition of bank premises and equipment
|
| | | | (195) | | | | | | 7 | | |
Gain on sale of foreclosed assets, net
|
| | | | (7) | | | | | | (18) | | |
Valuation adjustment on foreclosed assets
|
| | | | 7 | | | | | | 36 | | |
Earnings on investment in bank-owned life insurance
|
| | | | (211) | | | | | | (85) | | |
Gain on sale of mortgage loans held for sale
|
| | | | (217) | | | | | | (228) | | |
Originations of mortgage loans held for sale
|
| | | | (11,042) | | | | | | (9,347) | | |
Proceeds from sale of loans held for sale
|
| | | | 8,968 | | | | | | 10,039 | | |
Changes in assets and liabilities:
|
| | | ||||||||||
Other assets
|
| | | | (126) | | | | | | 76 | | |
Accrued interest receivable
|
| | | | (117) | | | | | | 68 | | |
Other liabilities
|
| | | | (4) | | | | | | (1,242) | | |
Accrued interest payable
|
| | | | 20 | | | | | | (36) | | |
Net cash provided by operating activities
|
| | | | 1,804 | | | | | | 2,535 | | |
Cash flows from investing activities: | | | | ||||||||||
Proceeds from sales and calls of investment securities available-for-sale
|
| | | | — | | | | | | 5,198 | | |
Proceeds from maturities and calls of investment securities held-to-maturity
|
| | | | 155 | | | | | | 100 | | |
Proceeds from paydowns of investment securities available-for-sale
|
| | | | 4,287 | | | | | | 3,195 | | |
Proceeds from paydowns of investment securities held-to-maturity
|
| | | | 5,444 | | | | | | 6,513 | | |
Purchases of investment securities available-for-sale
|
| | | | (22,011) | | | | | | (250) | | |
Redemption of certificates of deposits held for investment
|
| | | | 2,935 | | | | | | 1,715 | | |
Purchases of FHLB stock
|
| | | | (450) | | | | | | (308) | | |
Net decrease (increase) in loans outstanding
|
| | | | 9,250 | | | | | | (30,366) | | |
Disposal (purchases) of bank premises and equipment
|
| | | | 1,226 | | | | | | (265) | | |
Proceeds from sales of foreclosed assets
|
| | | | 301 | | | | | | 240 | | |
Net cash provided by (used in) investing activities
|
| | | | 1,137 | | | | | | (14,228) | | |
Cash flows from financing activities: | | | | ||||||||||
Net proceeds from borrowings
|
| | | | 10,000 | | | | | | 10,000 | | |
Net increase in deposit accounts
|
| | | | 6,621 | | | | | | 9,441 | | |
Proceeds from issuance of common stock
|
| | | | 213 | | | | | | 159 | | |
Cash dividends paid
|
| | | | (60) | | | | | | — | | |
Shares withheld for payment of taxes
|
| | | | — | | | | | | (71) | | |
Net cash provided by financing activities
|
| | | | 16,774 | | | | | | 19,529 | | |
Change in cash and cash equivalents
|
| | | | 19,715 | | | | | | 7,836 | | |
Cash and cash equivalents at beginning of period
|
| | | | 32,563 | | | | | | 26,755 | | |
Cash and cash equivalents at end of period
|
| | | $ | 52,278 | | | | | $ | 34,591 | | |
Supplemental disclosures of cash flow information: | | | | ||||||||||
Interest paid on deposits and borrowings
|
| | | $ | 2,334 | | | | | $ | 2,493 | | |
Supplemental disclosures of noncash investing and financing activities: | | | | ||||||||||
Unrealized gains on investment securities available-for-sale
|
| | | $ | 527 | | | | | $ | 2,395 | | |
Amortization of net losses on investment securities transferred to held-to-maturity
|
| | | | (15) | | | | | | (20) | | |
Transfer of loans to foreclosed assets
|
| | | | — | | | | | | 1,017 | | |
Transfer from premises and equipment to premises and equipment held for sale
|
| | | | 1,088 | | | | | | — | | |
| | |
Three Months Ended
June 30, |
| |
Six Months Ended
June 30, |
| ||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2017
|
| |
2016
|
| ||||||||||||
Net income available to common shareholders
|
| | | $ | 1,323 | | | | | $ | 872 | | | | | $ | 2,511 | | | | | $ | 1,703 | | |
Weighted average number of common shares – basic
|
| | | | 6,515,569 | | | | | | 6,486,792 | | | | | | 6,510,209 | | | | | | 6,470,743 | | |
Effect of dilutive stock options
|
| | | | 4,637 | | | | | | 7,450 | | | | | | 6,076 | | | | | | 7,206 | | |
Effect of dilutive restricted stock awards
|
| | | | 141,299 | | | | | | 74,807 | | | | | | 136,227 | | | | | | 59,160 | | |
Weighted average number of common shares – dilutive
|
| | | | 6,661,505 | | | | | | 6,569,049 | | | | | | 6,652,512 | | | | | | 6,537,109 | | |
Basic earnings per common share
|
| | | $ | 0.20 | | | | | $ | 0.13 | | | | | $ | 0.38 | | | | | $ | 0.26 | | |
Diluted earnings per common share
|
| | | $ | 0.20 | | | | | $ | 0.13 | | | | | $ | 0.38 | | | | | $ | 0.26 | | |
Potential shares: anti-dilutive awards
|
| | | | 2,461 | | | | | | 2,461 | | | | | | 2,461 | | | | | | 2,461 | | |
| | |
June 30, 2017
|
| |||||||||||||||||||||
Securities Available-for-Sale:
|
| |
Amortized
Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Fair
Value |
| ||||||||||||
Taxable municipal securities
|
| | | $ | 19,840 | | | | | $ | 642 | | | | | $ | 62 | | | | | $ | 20,420 | | |
Tax exempt municipal securities
|
| | | | 531 | | | | | | 6 | | | | | | — | | | | | | 537 | | |
Mortgage-backed securities | | | | | | ||||||||||||||||||||
GNMA
|
| | | | 9,873 | | | | | | 58 | | | | | | 38 | | | | | | 9,893 | | |
FNMA & FHLMC
|
| | | | 44,532 | | | | | | 35 | | | | | | 207 | | | | | | 44,360 | | |
Other debt securities
|
| | | | 1,000 | | | | | | — | | | | | | — | | | | | | 1,000 | | |
Total
|
| | | $ | 75,776 | | | | | $ | 741 | | | | | $ | 307 | | | | | $ | 76,210 | | |
|
| | |
June 30, 2017
|
| |||||||||||||||||||||
Securities Held-to-Maturity:
|
| |
Amortized
Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Fair
Value |
| ||||||||||||
Taxable municipal securities
|
| | | $ | 3,200 | | | | | $ | 29 | | | | | $ | — | | | | | $ | 3,229 | | |
Mortgage-backed securities | | | | | | ||||||||||||||||||||
GNMA
|
| | | | 40,663 | | | | | | 437 | | | | | | 96 | | | | | | 41,004 | | |
FNMA
|
| | | | 1,535 | | | | | | 22 | | | | | | — | | | | | | 1,557 | | |
Total
|
| | | $ | 45,398 | | | | | $ | 488 | | | | | $ | 96 | | | | | $ | 45,790 | | |
|
| | |
December 31, 2016
|
| |||||||||||||||||||||
Securities Available-for-Sale:
|
| |
Amortized
Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Fair
Value |
| ||||||||||||
Taxable municipal securities
|
| | | $ | 19,846 | | | | | $ | 350 | | | | | $ | 147 | | | | | $ | 20,049 | | |
Mortgage-backed securities | | | | | | ||||||||||||||||||||
GNMA
|
| | | | 11,704 | | | | | | 44 | | | | | | 68 | | | | | | 11,680 | | |
FNMA & FHLMC
|
| | | | 25,684 | | | | | | — | | | | | | 272 | | | | | | 25,412 | | |
Other debt securities
|
| | | | 1,000 | | | | | | — | | | | | | — | | | | | | 1,000 | | |
Total
|
| | | $ | 58,234 | | | | | $ | 394 | | | | | $ | 487 | | | | | $ | 58,141 | | |
|
| | |
December 31, 2016
|
| |||||||||||||||||||||
Securities Held-to-Maturity:
|
| |
Amortized
Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Fair
Value |
| ||||||||||||
Taxable municipal securities
|
| | | $ | 3,380 | | | | | $ | 9 | | | | | $ | 3 | | | | | $ | 3,386 | | |
Mortgage-backed securities | | | | | | ||||||||||||||||||||
GNMA
|
| | | | 45,968 | | | | | | 407 | | | | | | 187 | | | | | | 46,188 | | |
FNMA
|
| | | | 1,857 | | | | | | 21 | | | | | | — | | | | | | 1,878 | | |
Total
|
| | | $ | 51,205 | | | | | $ | 437 | | | | | $ | 190 | | | | | $ | 51,452 | | |
|
| | |
June 30, 2017
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Less Than 12 Months
|
| |
12 Months or More
|
| |
Total
|
| |||||||||||||||||||||||||||||||||||||||
Securities Available-for-Sale:
|
| |
#
Securities |
| |
Fair
value |
| |
Unrealized
losses |
| |
#
Securities |
| |
Fair
value |
| |
Unrealized
losses |
| |
Fair
value |
| |
Unrealized
losses |
| ||||||||||||||||||||||||
Taxable municipal securities
|
| | | | 5 | | | | | $ | 3,658 | | | | | $ | 62 | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | 3,658 | | | | | $ | 62 | | |
Mortgage-backed securities | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
GNMA
|
| | | | 1 | | | | | | 1,934 | | | | | | 12 | | | | | | 1 | | | | | | 2,788 | | | | | | 26 | | | | | | 4,722 | | | | | | 38 | | |
FNMA & FHLMC
|
| | | | 13 | | | | | | 27,927 | | | | | | 207 | | | | | | — | | | | | | — | | | | | | — | | | | | | 27,927 | | | | | | 207 | | |
Total temporarily impaired securities
|
| | | | 19 | | | | | $ | 33,519 | | | | | $ | 281 | | | | | | 1 | | | | | $ | 2,788 | | | | | $ | 26 | | | | | $ | 36,307 | | | | | $ | 307 | | |
|
| | |
June 30, 2017
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Less Than 12 Months
|
| |
12 Months or More
|
| |
Total
|
| |||||||||||||||||||||||||||||||||||||||
Securities Held-to-Maturity:
|
| |
#
Securities |
| |
Fair
value |
| |
Unrealized
losses |
| |
#
Securities |
| |
Fair
value |
| |
Unrealized
losses |
| |
Fair
value |
| |
Unrealized
losses |
| ||||||||||||||||||||||||
Mortgage-backed securities | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
GNMA
|
| | | | 9 | | | | | | 9,617 | | | | | | 96 | | | | | | — | | | | | | — | | | | | | — | | | | | | 9,617 | | | | | | 96 | | |
Total temporarily impaired securities
|
| | | | 9 | | | | | $ | 9,617 | | | | | $ | 96 | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | 9,617 | | | | | $ | 96 | | |
|
| | |
December 31, 2016
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Less Than 12 Months
|
| |
12 Months or More
|
| |
Total
|
| |||||||||||||||||||||||||||||||||||||||
Securities Available-for-Sale:
|
| |
#
Securities |
| |
Fair
value |
| |
Unrealized
losses |
| |
#
Securities |
| |
Fair
value |
| |
Unrealized
losses |
| |
Fair
value |
| |
Unrealized
losses |
| ||||||||||||||||||||||||
Taxable municipal securities
|
| | | | 9 | | | | | $ | 9,988 | | | | | $ | 147 | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | 9,988 | | | | | $ | 147 | | |
Mortgage-backed securities | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
GNMA
|
| | | | 3 | | | | | | 8,842 | | | | | | 68 | | | | | | — | | | | | | — | | | | | | — | | | | | | 8,842 | | | | | | 68 | | |
FNMA & FHLMC
|
| | | | 11 | | | | | | 25,412 | | | | | | 272 | | | | | | — | | | | | | — | | | | | | — | | | | | | 25,412 | | | | | | 272 | | |
Total temporarily impaired securities
|
| | | | 23 | | | | | $ | 44,242 | | | | | $ | 487 | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | 44,242 | | | | | $ | 487 | | |
|
| | |
December 31, 2016
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Less Than 12 Months
|
| |
12 Months or More
|
| |
Total
|
| |||||||||||||||||||||||||||||||||||||||
Securities Held-to-Maturity:
|
| |
#
Securities |
| |
Fair
value |
| |
Unrealized
losses |
| |
#
Securities |
| |
Fair
value |
| |
Unrealized
losses |
| |
Fair
value |
| |
Unrealized
losses |
| ||||||||||||||||||||||||
Taxable municipal securities
|
| | | | 1 | | | | | $ | 525 | | | | | $ | 3 | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | 525 | | | | | $ | 3 | | |
Mortgage-backed securities | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
GNMA
|
| | | | 16 | | | | | | 21,074 | | | | | | 187 | | | | | | — | | | | | | — | | | | | | — | | | | | | 21,074 | | | | | | 187 | | |
Total temporarily impaired securities
|
| | | | 17 | | | | | $ | 21,599 | | | | | $ | 190 | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | 21,599 | | | | | $ | 190 | | |
|
| | |
June 30, 2017
|
|||||||||
Securities Available-for-Sale:
|
| |
Amortized Cost
|
| |
Fair Value
|
||||||
Taxable municipal securities: | | | | |||||||||
Due after ten years
|
| | | $ | 19,840 | | | | | $ | 20,420 | |
Total taxable municipal securities
|
| | | | 19,840 | | | | | | 20,420 | |
Tax exempt municipal securities: | | | | |||||||||
Due after ten years
|
| | | | 531 | | | | | | 537 | |
Total tax exempt municipal securities
|
| | | | 531 | | | | | | 537 | |
Mortgage-backed securities – GNMA/FNMA & FHLMC: | | | | |||||||||
Due after ten years
|
| | | | 54,405 | | | | | | 54,253 | |
Total mortgage-backed securities – GNMA/FNMA & FHLMC
|
| | | | 54,405 | | | | | | 54,253 | |
Other debt securities: | | | | |||||||||
Due after five years through ten years
|
| | | | 1,000 | | | | | | 1,000 | |
Total other debt securities
|
| | | | 1,000 | | | | | | 1,000 | |
Total available-for-sale securities
|
| | | $ | 75,776 | | | | | $ | 76,210 | |
Securities Held-to-Maturity: | | | | |||||||||
Taxable municipal securities: | | | | |||||||||
Due after one year through five years
|
| | | $ | 2,679 | | | | | $ | 2,695 | |
Due after five years through ten years
|
| | | | 521 | | | | | | 534 | |
Total taxable municipal securities
|
| | | | 3,200 | | | | | | 3,229 | |
Mortgage-backed securities – GNMA/FNMA: | | | | |||||||||
Due after one year through five years
|
| | | | 978 | | | | | | 993 | |
Due after five years through ten years
|
| | | | 7,628 | | | | | | 7,806 | |
Due after ten years
|
| | | | 33,592 | | | | | | 33,762 | |
Total mortgage-backed securities – GNMA/FNMA
|
| | | | 42,198 | | | | | | 42,561 | |
Total held-to-maturity securities
|
| | | $ | 45,398 | | | | | $ | 45,790 | |
|
| | |
June 30, 2017
|
| |
December 31, 2016
|
| ||||||
Commercial and industrial
|
| | | $ | 23,448 | | | | | $ | 21,742 | | |
Commercial construction and land development
|
| | | | 45,626 | | | | | | 46,114 | | |
Commercial real estate
|
| | | | 250,316 | | | | | | 253,086 | | |
Residential construction
|
| | | | 43,706 | | | | | | 42,660 | | |
Residential mortgage
|
| | | | 125,047 | | | | | | 132,971 | | |
Consumer
|
| | | | 6,505 | | | | | | 6,896 | | |
Consumer credit cards
|
| | | | 1,942 | | | | | | 2,114 | | |
Business credit cards
|
| | | | 1,122 | | | | | | 1,235 | | |
Other
|
| | | | 332 | | | | | | 502 | | |
Gross loans
|
| | | | 498,044 | | | | | | 507,320 | | |
Less: | | | | ||||||||||
Net deferred loan fees
|
| | | | (283) | | | | | | (316) | | |
Net loans before allowance
|
| | | | 497,761 | | | | | | 507,004 | | |
Allowance for loan losses
|
| | | | (9,654) | | | | | | (9,647) | | |
Total net loans
|
| | | $ | 488,107 | | | | | $ | 497,357 | | |
Loans held for sale
|
| | | $ | 2,497 | | | | | $ | 206 | | |
|
| | |
Three Months Ended
June 30, 2017 |
| |||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | |
Real Estate
|
| | | | ||||||||||||||||||||||||||||||||||||
| | |
Commercial
and Industrial |
| |
Commercial
Construction and Land Development |
| |
Commercial
Real Estate |
| |
Residential
Construction |
| |
Residential
Mortgage |
| |
Consumer
|
| |
Other
|
| |
Totals
|
| ||||||||||||||||||||||||
Allowances for loan losses: | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period
|
| | | $ | 50 | | | | | $ | 4,989 | | | | | $ | 3,082 | | | | | $ | 301 | | | | | $ | 997 | | | | | $ | 166 | | | | | $ | 35 | | | | | $ | 9,620 | | |
Provision for loan losses
|
| | | | 6 | | | | | | (4) | | | | | | (19) | | | | | | 16 | | | | | | (3) | | | | | | 3 | | | | | | 1 | | | | | | — | | |
Loans charged-off
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1) | | | | | | (30) | | | | | | — | | | | | | (31) | | |
Recoveries
|
| | | | 12 | | | | | | 20 | | | | | | 1 | | | | | | — | | | | | | 8 | | | | | | 24 | | | | | | — | | | | | | 65 | | |
Net recoveries (charge-offs)
|
| | | | 12 | | | | | | 20 | | | | | | 1 | | | | | | — | | | | | | 7 | | | | | | (6) | | | | | | — | | | | | | 34 | | |
Balance, end of period
|
| | | $ | 68 | | | | | $ | 5,005 | | | | | $ | 3,064 | | | | | $ | 317 | | | | | $ | 1,001 | | | | | $ | 163 | | | | | $ | 36 | | | | | $ | 9,654 | | |
|
| | |
Six Months Ended
June 30, 2017 |
| |||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | |
Real Estate
|
| | | | ||||||||||||||||||||||||||||||||||||
| | |
Commercial
and Industrial |
| |
Commercial
Construction and Land Development |
| |
Commercial
Real Estate |
| |
Residential
Construction |
| |
Residential
Mortgage |
| |
Consumer
|
| |
Other
|
| |
Totals
|
| ||||||||||||||||||||||||
Allowances for loan losses: | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period
|
| | | $ | 58 | | | | | $ | 4,915 | | | | | $ | 3,198 | | | | | $ | 258 | | | | | $ | 1,078 | | | | | $ | 98 | | | | | $ | 42 | | | | | $ | 9,647 | | |
Provision for loan losses
|
| | | | (3) | | | | | | 52 | | | | | | (136) | | | | | | 59 | | | | | | (72) | | | | | | 107 | | | | | | (7) | | | | | | — | | |
Loans charged-off
|
| | | | (15) | | | | | | — | | | | | | — | | | | | | — | | | | | | (24) | | | | | | (84) | | | | | | — | | | | | | (123) | | |
Recoveries
|
| | | | 28 | | | | | | 38 | | | | | | 2 | | | | | | — | | | | | | 19 | | | | | | 42 | | | | | | 1 | | | | | | 130 | | |
Net recoveries (charge-offs)
|
| | | | 13 | | | | | | 38 | | | | | | 2 | | | | | | — | | | | | | (5) | | | | | | (42) | | | | | | 1 | | | | | | 7 | | |
Balance, end of period
|
| | | $ | 68 | | | | | $ | 5,005 | | | | | $ | 3,064 | | | | | $ | 317 | | | | | $ | 1,001 | | | | | $ | 163 | | | | | $ | 36 | | | | | $ | 9,654 | | |
Ending balance: individually evaluated for impairment
|
| | | $ | — | | | | | $ | 373 | | | | | $ | 465 | | | | | $ | — | | | | | $ | 160 | | | | | $ | 74 | | | | | $ | — | | | | | $ | 1,072 | | |
Ending balance:
collectively evaluated for impairment(1) |
| | | $ | 68 | | | | | $ | 4,632 | | | | | $ | 2,599 | | | | | $ | 317 | | | | | $ | 841 | | | | | $ | 89 | | | | | $ | 36 | | | | | $ | 8,582 | | |
Loans: | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
Balance, end of period(2)
|
| | | $ | 24,570 | | | | | $ | 45,626 | | | | | $ | 250,316 | | | | | $ | 43,706 | | | | | $ | 125,047 | | | | | $ | 8,447 | | | | | $ | 332 | | | | | $ | 498,044 | | |
Ending balance: individually evaluated for impairment
|
| | | $ | 43 | | | | | $ | 479 | | | | | $ | 2,782 | | | | | $ | — | | | | | $ | 1,636 | | | | | $ | 74 | | | | | $ | — | | | | | $ | 5,014 | | |
Ending balance: collectively evaluated for impairment(1)
|
| | | $ | 24,527 | | | | | $ | 45,147 | | | | | $ | 247,534 | | | | | $ | 43,706 | | | | | $ | 123,411 | | | | | $ | 8,373 | | | | | $ | 332 | | | | | $ | 493,030 | | |
| | |
Three Months Ended
June 30, 2016 |
| |||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | |
Real Estate
|
| | | | ||||||||||||||||||||||||||||||||||||
| | |
Commercial
and Industrial |
| |
Commercial
Construction and Land Development |
| |
Commercial
Real Estate |
| |
Residential
Construction |
| |
Residential
Mortgage |
| |
Consumer
|
| |
Other
|
| |
Totals
|
| ||||||||||||||||||||||||
Allowances for loan losses: | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period
|
| | | $ | 252 | | | | | $ | 5,040 | | | | | $ | 2,250 | | | | | $ | 292 | | | | | $ | 1,102 | | | | | $ | 95 | | | | | $ | 53 | | | | | $ | 9,084 | | |
Provision for loan losses
|
| | | | (57) | | | | | | (178) | | | | | | 242 | | | | | | (21) | | | | | | 34 | | | | | | (26) | | | | | | 6 | | | | | | — | | |
Loans charged-off
|
| | | | (35) | | | | | | (97) | | | | | | — | | | | | | — | | | | | | — | | | | | | (29) | | | | | | — | | | | | | (161) | | |
Recoveries
|
| | | | 22 | | | | | | 51 | | | | | | — | | | | | | — | | | | | | 11 | | | | | | 61 | | | | | | 1 | | | | | | 146 | | |
Net (charge-offs) recoveries
|
| | | | (13) | | | | | | (46) | | | | | | — | | | | | | — | | | | | | 11 | | | | | | 32 | | | | | | 1 | | | | | | (15) | | |
Balance, end of period
|
| | | $ | 182 | | | | | $ | 4,816 | | | | | $ | 2,492 | | | | | $ | 271 | | | | | $ | 1,147 | | | | | $ | 101 | | | | | $ | 60 | | | | | $ | 9,069 | | |
|
| | |
Six Months Ended
June 30, 2016 |
| |||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | |
Real Estate
|
| | | | ||||||||||||||||||||||||||||||||||||
| | |
Commercial
and Industrial |
| |
Commercial
Construction and Land Development |
| |
Commercial
Real Estate |
| |
Residential
Construction |
| |
Residential
Mortgage |
| |
Consumer
|
| |
Other
|
| |
Totals
|
| ||||||||||||||||||||||||
Allowances for loan losses: | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period
|
| | | $ | 221 | | | | | $ | 5,470 | | | | | $ | 2,268 | | | | | $ | 305 | | | | | $ | 1,191 | | | | | $ | 113 | | | | | $ | 48 | | | | | $ | 9,616 | | |
Provision for loan losses
|
| | | | (29) | | | | | | (619) | | | | | | 787 | | | | | | (55) | | | | | | (65) | | | | | | (29) | | | | | | 10 | | | | | | — | | |
Loans charged-off
|
| | | | (59) | | | | | | (97) | | | | | | (565) | | | | | | — | | | | | | — | | | | | | (70) | | | | | | — | | | | | | (791) | | |
Recoveries
|
| | | | 49 | | | | | | 62 | | | | | | 2 | | | | | | 21 | | | | | | 21 | | | | | | 87 | | | | | | 2 | | | | | | 244 | | |
Net (charge-offs) recoveries
|
| | | | (10) | | | | | | (35) | | | | | | (563) | | | | | | 21 | | | | | | 21 | | | | | | 17 | | | | | | 2 | | | | | | (547) | | |
Balance, end of period
|
| | | $ | 182 | | | | | $ | 4,816 | | | | | $ | 2,492 | | | | | $ | 271 | | | | | $ | 1,147 | | | | | $ | 101 | | | | | $ | 60 | | | | | $ | 9,069 | | |
Ending balance: individually evaluated for impairment
|
| | | $ | 1 | | | | | $ | 522 | | | | | $ | 133 | | | | | $ | — | | | | | $ | 7 | | | | | $ | — | | | | | $ | — | | | | | $ | 663 | | |
Ending balance: collectively evaluated for impairment(1)
|
| | | $ | 181 | | | | | $ | 4,294 | | | | | $ | 2,359 | | | | | $ | 271 | | | | | $ | 1,140 | | | | | $ | 101 | | | | | $ | 60 | | | | | $ | 8,406 | | |
Loans: | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
Balance, end of period(2)
|
| | | $ | 24,068 | | | | | $ | 45,439 | | | | | $ | 236,962 | | | | | $ | 38,458 | | | | | $ | 133,822 | | | | | $ | 9,113 | | | | | $ | 65 | | | | | $ | 487,927 | | |
Ending balance: individually evaluated for impairment
|
| | | $ | 27 | | | | | $ | 1,132 | | | | | $ | 1,813 | | | | | $ | 287 | | | | | $ | 1,517 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,776 | | |
Ending balance: collectively evaluated for impairment(1)
|
| | | $ | 24,041 | | | | | $ | 44,307 | | | | | $ | 235,149 | | | | | $ | 38,171 | | | | | $ | 132,305 | | | | | $ | 9,113 | | | | | $ | 65 | | | | | $ | 483,151 | | |
| | |
Twelve Months Ended
December 31, 2016 |
| |||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | |
Real Estate
|
| | | | ||||||||||||||||||||||||||||||||||||
| | |
Commercial
and Industrial |
| |
Commercial
Construction and Land Development |
| |
Commercial
Real Estate |
| |
Residential
Construction |
| |
Residential
Mortgage |
| |
Consumer
|
| |
Other
|
| |
Totals
|
| ||||||||||||||||||||||||
Allowances for loan losses: | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period
|
| | | $ | 221 | | | | | $ | 5,470 | | | | | $ | 2,268 | | | | | $ | 305 | | | | | $ | 1,191 | | | | | $ | 113 | | | | | $ | 48 | | | | | $ | 9,616 | | |
Provision for loan losses
|
| | | | (187) | | | | | | (1,114) | | | | | | 1,474 | | | | | | (68) | | | | | | (138) | | | | | | 33 | | | | | | — | | | | | | — | | |
Loans charged-off
|
| | | | (73) | | | | | | (229) | | | | | | (565) | | | | | | — | | | | | | (45) | | | | | | (161) | | | | | | (9) | | | | | | (1,082) | | |
Recoveries
|
| | | | 97 | | | | | | 788 | | | | | | 21 | | | | | | 21 | | | | | | 70 | | | | | | 113 | | | | | | 3 | | | | | | 1,113 | | |
Net recoveries (charge-offs)
|
| | | | 24 | | | | | | 559 | | | | | | (544) | | | | | | 21 | | | | | | 25 | | | | | | (48) | | | | | | (6) | | | | | | 31 | | |
Balance, end of period
|
| | | $ | 58 | | | | | $ | 4,915 | | | | | $ | 3,198 | | | | | $ | 258 | | | | | $ | 1,078 | | | | | $ | 98 | | | | | $ | 42 | | | | | $ | 9,647 | | |
Ending balance: individually evaluated for impairment
|
| | | $ | — | | | | | $ | 415 | | | | | $ | 530 | | | | | $ | — | | | | | $ | 39 | | | | | $ | — | | | | | $ | — | | | | | $ | 984 | | |
Ending balance: collectively evaluated for impairment(1)
|
| | | $ | 58 | | | | | $ | 4,500 | | | | | $ | 2,668 | | | | | $ | 258 | | | | | $ | 1,039 | | | | | $ | 98 | | | | | $ | 42 | | | | | $ | 8,663 | | |
Loans: | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
Balance, end of period(2)
|
| | | $ | 22,977 | | | | | $ | 46,114 | | | | | $ | 253,086 | | | | | $ | 42,660 | | | | | $ | 132,971 | | | | | $ | 9,010 | | | | | $ | 502 | | | | | $ | 507,320 | | |
Ending balance: individually evaluated for impairment
|
| | | $ | 24 | | | | | $ | 652 | | | | | $ | 2,866 | | | | | $ | — | | | | | $ | 1,844 | | | | | $ | — | | | | | $ | — | | | | | $ | 5,386 | | |
Ending balance: collectively evaluated for impairment(1)
|
| | | $ | 22,953 | | | | | $ | 45,462 | | | | | $ | 250,220 | | | | | $ | 42,660 | | | | | $ | 131,127 | | | | | $ | 9,010 | | | | | $ | 502 | | | | | $ | 501,934 | | |
| | |
June 30, 2017
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | |
Real Estate
|
| | | | ||||||||||||||||||||||||||||||||||||
| | |
Commercial
and Industrial |
| |
Commercial
Construction and Land Development |
| |
Commercial
Real Estate |
| |
Residential
Construction |
| |
Residential
Mortgage |
| |
Consumer
|
| |
Other
|
| |
Totals
|
| ||||||||||||||||||||||||
1 – Lowest Risk
|
| | | $ | 872 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1,478 | | | | | $ | — | | | | | $ | 2,350 | | |
2 – Strong
|
| | | | 1,133 | | | | | | 1,365 | | | | | | 5,530 | | | | | | 488 | | | | | | 15,848 | | | | | | 494 | | | | | | 94 | | | | | | 24,952 | | |
3 – Standard
|
| | | | 9,709 | | | | | | 14,158 | | | | | | 112,358 | | | | | | 16,607 | | | | | | 50,864 | | | | | | 1,256 | | | | | | 146 | | | | | | 205,098 | | |
4 – Acceptable
|
| | | | 11,426 | | | | | | 26,401 | | | | | | 118,731 | | | | | | 26,611 | | | | | | 50,841 | | | | | | 3,155 | | | | | | 92 | | | | | | 237,257 | | |
5 – Special Mention
|
| | | | 258 | | | | | | 3,074 | | | | | | 10,256 | | | | | | — | | | | | | 5,878 | | | | | | 48 | | | | | | — | | | | | | 19,514 | | |
6-8 – Substandard
|
| | | | 50 | | | | | | 628 | | | | | | 3,441 | | | | | | — | | | | | | 1,616 | | | | | | 74 | | | | | | — | | | | | | 5,809 | | |
| | | | $ | 23,448 | | | | | $ | 45,626 | | | | | $ | 250,316 | | | | | $ | 43,706 | | | | | $ | 125,047 | | | | | $ | 6,505 | | | | | $ | 332 | | | | | $ | 494,980 | | |
|
| | |
Consumer –
Credit Card |
| |
Business –
Credit Card |
| ||||||
Performing
|
| | | $ | 1,930 | | | | | $ | 1,122 | | |
Nonperforming
|
| | | | 12 | | | | | | — | | |
Total
|
| | | $ | 1,942 | | | | | $ | 1,122 | | |
Total Loans
|
| | | | | | | | | $ | 498,044 | | |
|
| | |
December 31, 2016
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | |
Real Estate
|
| | | | ||||||||||||||||||||||||||||||||||||
| | |
Commercial
and Industrial |
| |
Commercial
Construction and Land Development |
| |
Commercial
Real Estate |
| |
Residential
Construction |
| |
Residential
Mortgage |
| |
Consumer
|
| |
Other
|
| |
Totals
|
| ||||||||||||||||||||||||
1 – Lowest Risk
|
| | | $ | 897 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1,321 | | | | | $ | — | | | | | $ | 2,218 | | |
2 – Strong
|
| | | | 915 | | | | | | 1,524 | | | | | | 5,439 | | | | | | 292 | | | | | | 15,105 | | | | | | 597 | | | | | | 97 | | | | | | 23,969 | | |
3 – Standard
|
| | | | 9,588 | | | | | | 13,671 | | | | | | 116,065 | | | | | | 12,300 | | | | | | 56,374 | | | | | | 1,131 | | | | | | 311 | | | | | | 209,440 | | |
4 – Acceptable
|
| | | | 9,932 | | | | | | 26,926 | | | | | | 118,077 | | | | | | 30,068 | | | | | | 53,832 | | | | | | 3,770 | | | | | | 94 | | | | | | 242,699 | | |
5 – Special Mention
|
| | | | 373 | | | | | | 3,261 | | | | | | 10,088 | | | | | | — | | | | | | 5,804 | | | | | | 77 | | | | | | — | | | | | | 19,603 | | |
6-8 – Substandard
|
| | | | 37 | | | | | | 732 | | | | | | 3,417 | | | | | | — | | | | | | 1,856 | | | | | | — | | | | | | — | | | | | | 6,042 | | |
| | | | $ | 21,742 | | | | | $ | 46,114 | | | | | $ | 253,086 | | | | | $ | 42,660 | | | | | $ | 132,971 | | | | | $ | 6,896 | | | | | $ | 502 | | | | | $ | 503,971 | | |
|
| | |
Consumer –
Credit Card |
| |
Business –
Credit Card |
| ||||||
Performing
|
| | | $ | 2,095 | | | | | $ | 1,214 | | |
Non Performing
|
| | | | 19 | | | | | | 21 | | |
Total
|
| | | $ | 2,114 | | | | | $ | 1,235 | | |
Total Loans
|
| | | | | | | | | $ | 507,320 | | |
|
| | |
June 30, 2017
|
| |||||||||||||||||||||||||||||||||
| | |
30 – 89
Days Past Due |
| |
90 Days or
More Past Due |
| |
Nonaccrual
|
| |
Total Past
Due |
| |
Current
|
| |
Total
Loans |
| ||||||||||||||||||
Commercial & industrial
|
| | | $ | 21 | | | | | $ | — | | | | | $ | 51 | | | | | $ | 72 | | | | | $ | 23,376 | | | | | $ | 23,448 | | |
Commercial construction & land development
|
| | | | — | | | | | | — | | | | | | 588 | | | | | | 588 | | | | | | 45,038 | | | | | | 45,626 | | |
Commercial real estate
|
| | | | — | | | | | | — | | | | | | 1,817 | | | | | | 1,817 | | | | | | 248,499 | | | | | | 250,316 | | |
Residential construction
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 43,706 | | | | | | 43,706 | | |
Residential mortgage
|
| | | | 89 | | | | | | — | | | | | | 1,468 | | | | | | 1,557 | | | | | | 123,490 | | | | | | 125,047 | | |
Consumer
|
| | | | 9 | | | | | | — | | | | | | 74 | | | | | | 83 | | | | | | 6,422 | | | | | | 6,505 | | |
Consumer credit cards
|
| | | | 31 | | | | | | 12 | | | | | | — | | | | | | 43 | | | | | | 1,899 | | | | | | 1,942 | | |
Business credit cards
|
| | | | 5 | | | | | | — | | | | | | — | | | | | | 5 | | | | | | 1,117 | | | | | | 1,122 | | |
Other loans
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 332 | | | | | | 332 | | |
Total
|
| | | $ | 155 | | | | | $ | 12 | | | | | $ | 3,998 | | | | | $ | 4,165 | | | | | $ | 493,879 | | | | | $ | 498,044 | | |
|
| | |
December 31, 2016
|
| |||||||||||||||||||||||||||||||||
| | |
30 – 89
Days Past Due |
| |
90 Days or
More Past Due |
| |
Nonaccrual
|
| |
Total Past
Due |
| |
Current
|
| |
Total
Loans |
| ||||||||||||||||||
Commercial & industrial
|
| | | $ | — | | | | | $ | — | | | | | $ | 36 | | | | | $ | 36 | | | | | $ | 21,706 | | | | | $ | 21,742 | | |
Commercial construction & land development
|
| | | | 89 | | | | | | — | | | | | | 691 | | | | | | 780 | | | | | | 45,334 | | | | | | 46,114 | | |
Commercial real estate
|
| | | | 10 | | | | | | — | | | | | | 2,153 | | | | | | 2,163 | | | | | | 250,923 | | | | | | 253,086 | | |
Residential construction
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 42,660 | | | | | | 42,660 | | |
Residential mortgage
|
| | | | 295 | | | | | | — | | | | | | 1,444 | | | | | | 1,739 | | | | | | 131,232 | | | | | | 132,971 | | |
Consumer
|
| | | | 42 | | | | | | — | | | | | | — | | | | | | 42 | | | | | | 6,854 | | | | | | 6,896 | | |
Consumer credit cards
|
| | | | 48 | | | | | | 19 | | | | | | — | | | | | | 67 | | | | | | 2,047 | | | | | | 2,114 | | |
Business credit cards
|
| | | | 9 | | | | | | 21 | | | | | | — | | | | | | 30 | | | | | | 1,205 | | | | | | 1,235 | | |
Other loans
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 502 | | | | | | 502 | | |
Total
|
| | | $ | 493 | | | | | $ | 40 | | | | | $ | 4,324 | | | | | $ | 4,857 | | | | | $ | 502,463 | | | | | $ | 507,320 | | |
|
| | |
June 30, 2017
|
| |
December 31, 2016
|
| ||||||
Loans past due ninety days or more and still accruing
|
| | | $ | 12 | | | | | $ | 40 | | |
Nonaccrual loans
|
| | | | 3,998 | | | | | | 4,324 | | |
Foreclosed assets
|
| | | | 1,381 | | | | | | 1,682 | | |
Total nonperforming assets
|
| | | $ | 5,391 | | | | | $ | 6,046 | | |
|
| | |
June 30, 2017
|
| |||||||||||||||||||||||||||
| | |
As of Date
|
| |
Year to Date
|
| ||||||||||||||||||||||||
| | |
Recorded
Investment |
| |
Unpaid
Principal Balance |
| |
Related
Allowance |
| |
Average
Recorded Investment |
| |
Interest
Income Recognized |
| |||||||||||||||
With no related allowance recorded:
|
| | | | | | |||||||||||||||||||||||||
Commercial and industrial
|
| | | $ | 43 | | | | | $ | 44 | | | | | $ | — | | | | | $ | 45 | | | | | $ | — | | |
Commercial construction & land development
|
| | | | 48 | | | | | | 57 | | | | | | — | | | | | | 50 | | | | | | — | | |
Commercial real estate
|
| | | | 1,058 | | | | | | 1,620 | | | | | | — | | | | | | 1,089 | | | | | | 25 | | |
Residential mortgage
|
| | | | 1,476 | | | | | | 1,577 | | | | | | — | | | | | | 1,499 | | | | | | 7 | | |
Subtotal:
|
| | | | 2,625 | | | | | | 3,298 | | | | | | — | | | | | | 2,683 | | | | | | 32 | | |
With an allowance recorded: | | | | | | | |||||||||||||||||||||||||
Commercial and industrial
|
| | | | 7 | | | | | | 7 | | | | | | 1 | | | | | | 10 | | | | | | — | | |
Commercial construction & land development
|
| | | | 541 | | | | | | 660 | | | | | | 386 | | | | | | 548 | | | | | | — | | |
Commercial real estate
|
| | | | 1,725 | | | | | | 1,745 | | | | | | 465 | | | | | | 1,728 | | | | | | — | | |
Residential mortgage
|
| | | | 205 | | | | | | 211 | | | | | | 165 | | | | | | 107 | | | | | | — | | |
Consumer
|
| | | | 74 | | | | | | 76 | | | | | | 74 | | | | | | 76 | | | | | | — | | |
Subtotal:
|
| | | | 2,552 | | | | | | 2,699 | | | | | | 1,091 | | | | | | 2,469 | | | | | | — | | |
Totals: | | | | | | | |||||||||||||||||||||||||
Commercial
|
| | | | 3,422 | | | | | | 4,133 | | | | | | 852 | | | | | | 3,470 | | | | | | 25 | | |
Residential
|
| | | | 1,681 | | | | | | 1,788 | | | | | | 165 | | | | | | 1,606 | | | | | | 7 | | |
Consumer
|
| | | | 74 | | | | | | 76 | | | | | | 74 | | | | | | 76 | | | | | | — | | |
Grand Total
|
| | | $ | 5,177 | | | | | $ | 5,997 | | | | | $ | 1,091 | | | | | $ | 5,152 | | | | | $ | 32 | | |
|
| | |
December 31, 2016
|
| |||||||||||||||||||||||||||
| | |
As of Date
|
| |
Year to Date
|
| ||||||||||||||||||||||||
| | |
Recorded
Investment |
| |
Unpaid
Principal Balance |
| |
Related
Allowance |
| |
Average
Recorded Investment |
| |
Interest
Income Recognized |
| |||||||||||||||
With no related allowance recorded:
|
| | | | | | |||||||||||||||||||||||||
Commercial and industrial
|
| | | $ | 18 | | | | | $ | 19 | | | | | $ | — | | | | | $ | 21 | | | | | $ | — | | |
Commercial construction & land development
|
| | | | 53 | | | | | | 60 | | | | | | — | | | | | | 58 | | | | | | — | | |
Commercial real estate
|
| | | | 1,131 | | | | | | 1,660 | | | | | | — | | | | | | 1,189 | | | | | | 50 | | |
Residential mortgage
|
| | | | 1,804 | | | | | | 1,882 | | | | | | — | | | | | | 1,881 | | | | | | 37 | | |
Subtotal:
|
| | | | 3,006 | | | | | | 3,621 | | | | | | — | | | | | | 3,149 | | | | | | 87 | | |
With an allowance recorded: | | | | | | | |||||||||||||||||||||||||
Commercial and industrial
|
| | | | 18 | | | | | | 18 | | | | | | 2 | | | | | | 17 | | | | | | — | | |
Commercial construction & land development
|
| | | | 638 | | | | | | 763 | | | | | | 420 | | | | | | 660 | | | | | | 11 | | |
Commercial real estate
|
| | | | 1,736 | | | | | | 1,739 | | | | | | 529 | | | | | | 1,741 | | | | | | 36 | | |
Residential mortgage
|
| | | | 164 | | | | | | 208 | | | | | | 56 | | | | | | 191 | | | | | | 13 | | |
Subtotal:
|
| | | | 2,556 | | | | | | 2,728 | | | | | | 1,007 | | | | | | 2,609 | | | | | | 60 | | |
Totals: | | | | | | | |||||||||||||||||||||||||
Commercial
|
| | | | 3,594 | | | | | | 4,259 | | | | | | 951 | | | | | | 3,686 | | | | | | 97 | | |
Residential
|
| | | | 1,968 | | | | | | 2,090 | | | | | | 56 | | | | | | 2,072 | | | | | | 50 | | |
Grand Total:
|
| | | $ | 5,562 | | | | | $ | 6,349 | | | | | $ | 1,007 | | | | | $ | 5,758 | | | | | $ | 147 | | |
|
| | |
June 30, 2017
|
| |||||||||||||||||||||
| | |
Accrual
|
| |
Nonaccrual
|
| |
Total TDRs
|
| |
Allowance for
Loan Losses Allocated |
| ||||||||||||
Commercial & industrial
|
| | | $ | — | | | | | $ | 43 | | | | | $ | 43 | | | | | $ | — | | |
Commercial real estate
|
| | | | 965 | | | | | | 339 | | | | | | 1,304 | | | | | | 102 | | |
Residential mortgage
|
| | | | 213 | | | | | | 253 | | | | | | 466 | | | | | | — | | |
Total modifications
|
| | | $ | 1,178 | | | | | $ | 635 | | | | | $ | 1,813 | | | | | $ | 102 | | |
|
| | |
December 31, 2016
|
| |||||||||||||||||||||
| | |
Accrual
|
| |
Nonaccrual
|
| |
Total TDRs
|
| |
Allowance for
Loan Losses Allocated |
| ||||||||||||
Commercial & industrial
|
| | | $ | — | | | | | $ | 24 | | | | | $ | 24 | | | | | $ | 1 | | |
Commercial real estate
|
| | | | 714 | | | | | | 657 | | | | | | 1,371 | | | | | | 155 | | |
Residential mortgage
|
| | | | 474 | | | | | | 121 | | | | | | 595 | | | | | | — | | |
Total modifications
|
| | | $ | 1,188 | | | | | $ | 802 | | | | | $ | 1,990 | | | | | $ | 156 | | |
|
| | |
Three Months Ended
June 30, 2017 |
| |
Six Months Ended
June 30, 2017 |
| ||||||||||||||||||||||||||||||
| | |
Number of
loans |
| |
Pre-
Modification Outstanding Recorded Investment |
| |
Post-
Modification Outstanding Recorded Investment |
| |
Number of
loans |
| |
Pre-
Modification Outstanding Recorded Investment |
| |
Post-
Modification Outstanding Recorded Investment |
| ||||||||||||||||||
Extended payment terms: | | | | | | | | ||||||||||||||||||||||||||||||
Commercial & industrial
|
| | | | — | | | | | $ | — | | | | | $ | — | | | | | | 1 | | | | | $ | 45 | | | | | $ | 45 | | |
Subtotal
|
| | | | — | | | | | $ | — | | | | | $ | — | | | | | | 1 | | | | | $ | 45 | | | | | $ | 45 | | |
Total
|
| | | | — | | | | | $ | — | | | | | $ | — | | | | | | 1 | | | | | $ | 45 | | | | | $ | 45 | | |
|
| | |
Twelve Months Ended June 30, 2017
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Paid in full
|
| |
Paying as restructured
|
| |
Converted to nonaccrual
|
| |
Foreclosure/Default
|
| ||||||||||||||||||||||||||||||||||||
| | |
Number of
loans |
| |
Recorded
Investment |
| |
Number of
loans |
| |
Recorded
Investment |
| |
Number of
loans |
| |
Recorded
Investment |
| |
Number of
loans |
| |
Recorded
Investment |
| ||||||||||||||||||||||||
| | |
(amounts in thousands, except number of loans)
|
| |||||||||||||||||||||||||||||||||||||||||||||
Extended payment terms
|
| | | | 3 | | | | | $ | — | | | | | | 3 | | | | | $ | 627 | | | | | | 1 | | | | | $ | 253 | | | | | | — | | | | | $ | — | | |
Other
|
| | | | 1 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | | 4 | | | | | $ | — | | | | | | 3 | | | | | $ | 627 | | | | | | 1 | | | | | $ | 253 | | | | | | — | | | | | $ | — | | |
|
Origination Date
|
| |
Maturity Date
|
| |
Interest Rate
|
| |
June 30, 2017
|
| |||||||||
February 4, 2008
|
| | February 5, 2018 | | | | | 2.06% | | | | Fixed | | | | $ | 10,000 | | |
June 5, 2008
|
| | June 5, 2018 | | | | | 2.25% | | | | Fixed | | | | | 5,000 | | |
June 5, 2008
|
| | June 5, 2018 | | | | | 2.55% | | | | Fixed | | | | | 5,000 | | |
September 18, 2008
|
| | September 18, 2018 | | | | | 2.71% | | | | Fixed | | | | | 10,000 | | |
February 10, 2016
|
| | August 9, 2017 | | | | | 0.73% | | | | Fixed | | | | | 10,000 | | |
April 29, 2016(1)
|
| | April 29, 2019 | | | | | 2.54% | | | | Fixed | | | | | 5,000 | | |
April 29, 2016(1)
|
| | April 29, 2019 | | | | | 2.62% | | | | Fixed | | | | | 5,000 | | |
April 29, 2016(1)
|
| | April 29, 2019 | | | | | 2.83% | | | | Fixed | | | | | 10,000 | | |
May 25, 2016
|
| | May 25, 2018 | | | | | 1.13% | | | | Fixed | | | | | 10,000 | | |
January 9, 2017
|
| | July 7, 2017 | | | | | 0.76% | | | | Fixed | | | | | 5,000 | | |
February 2, 2017
|
| | November 2, 2017 | | | | | 0.89% | | | | Fixed | | | | | 5,000 | | |
| | | | | | | | | | | | | | | | $ | 80,000 | | |
|
Origination Date
|
| |
Maturity
|
| |
Interest Rate
|
| |
December 31, 2016
|
| |||||||||
February 4, 2008
|
| | February 5, 2018 | | | | | 2.06% | | | | Fixed | | | | $ | 10,000 | | |
June 5, 2008
|
| | June 5, 2018 | | | | | 2.25% | | | | Fixed | | | | | 5,000 | | |
June 5, 2008
|
| | June 5, 2018 | | | | | 2.55% | | | | Fixed | | | | | 5,000 | | |
September 18, 2008
|
| | September 18, 2018 | | | | | 2.71% | | | | Fixed | | | | | 10,000 | | |
February 10, 2016
|
| | August 9, 2017 | | | | | 0.73% | | | | Fixed | | | | | 10,000 | | |
April 29, 2016(1)
|
| | April 29, 2019 | | | | | 2.54% | | | | Fixed | | | | | 5,000 | | |
April 29, 2016(1)
|
| | April 29, 2019 | | | | | 2.62% | | | | Fixed | | | | | 5,000 | | |
April 29, 2016(1)
|
| | April 29, 2019 | | | | | 2.83% | | | | Fixed | | | | | 10,000 | | |
May 25, 2016
|
| | May 25, 2018 | | | | | 1.13% | | | | Fixed | | | | | 10,000 | | |
| | | | | | | | | | | | | | | | $ | 70,000 | | |
|
| | |
June 30, 2017
|
| |||
Commitments to extend credit
|
| | | $ | 35,726 | | |
Undisbursed lines of credit
|
| | | | 105,523 | | |
Financial stand-by letters of credit
|
| | | | 835 | | |
Performance stand-by letters of credit
|
| | | | 153 | | |
Legally binding commitments
|
| | | | 142,237 | | |
Unused credit card lines
|
| | | | 17,179 | | |
Total
|
| | | $ | 159,416 | | |
|
| | |
June 30, 2017
|
| |||
Securities
|
| | | $ | 33,664 | | |
Loans
|
| | | | 92,450 | | |
| | | | | | | | | | | | | | |
Fair Value Measurements at
June 30, 2017, Using |
| |||||||||||||||
| | |
Total Carrying
Amount in the Consolidated Balance Sheet |
| |
Assets
Measured at Fair Value |
| |
Quoted Prices
in Active Markets for Identical Assets |
| |
Significant
Other Observable Inputs |
| |
Significant
Unobservable Inputs |
| |||||||||||||||
| | |
6/30/2017
|
| |
6/30/2017
|
| |
(Level 1)
|
| |
(Level 2)
|
| |
(Level 3)
|
| |||||||||||||||
Available-for-Sale Securities: | | | | | | | |||||||||||||||||||||||||
Taxable municipal securities
|
| | | $ | 20,420 | | | | | $ | 20,420 | | | | | $ | — | | | | | $ | 20,420 | | | | | $ | — | | |
Tax exempt municipal securities
|
| | | | 537 | | | | | | 537 | | | | | | — | | | | | | 537 | | | | | | — | | |
Mortgage-backed securities: | | | | | | | |||||||||||||||||||||||||
GNMA
|
| | | | 9,893 | | | | | | 9,893 | | | | | | — | | | | | | 9,893 | | | | | | — | | |
FNMA & FHLMC
|
| | | | 44,360 | | | | | | 44,360 | | | | | | — | | | | | | 44,360 | | | | | | — | | |
Other debt securities
|
| | | | 1,000 | | | | | | 1,000 | | | | | | — | | | | | | — | | | | | | 1,000 | | |
Total available-for-sale securities
|
| | | $ | 76,210 | | | | | $ | 76,210 | | | | | $ | — | | | | | $ | 75,210 | | | | | $ | 1,000 | | |
|
| | | | | | | | | | | | | | |
Fair Value Measurements at
December 31, 2016, Using |
| |||||||||||||||
| | |
Total Carrying
Amount in the Consolidated Balance Sheet |
| |
Assets
Measured at Fair Value |
| |
Quoted Prices
in Active Markets for Identical Assets |
| |
Significant
Other Observable Inputs |
| |
Significant
Unobservable Inputs |
| |||||||||||||||
| | |
12/31/2016
|
| |
12/31/2016
|
| |
(Level 1)
|
| |
(Level 2)
|
| |
(Level 3)
|
| |||||||||||||||
Available-for-Sale Securities: | | | | | | | |||||||||||||||||||||||||
Taxable municipal securities
|
| | | $ | 20,049 | | | | | $ | 20,049 | | | | | $ | — | | | | | $ | 20,049 | | | | | $ | — | | |
Mortgage-backed securities: | | | | | | | |||||||||||||||||||||||||
GNMA
|
| | | | 11,680 | | | | | | 11,680 | | | | | | — | | | | | | 11,680 | | | | | | — | | |
FNMA & FHLMC
|
| | | | 25,412 | | | | | | 25,412 | | | | | | — | | | | | | 25,412 | | | | | | — | | |
Other debt securities
|
| | | | 1,000 | | | | | | 1,000 | | | | | | — | | | | | | — | | | | | | 1,000 | | |
Total available-for-sale securities
|
| | | $ | 58,141 | | | | | $ | 58,141 | | | | | $ | — | | | | | $ | 57,141 | | | | | $ | 1,000 | | |
|
| | |
Three Months Ended
June 30, |
| |
Six Months Ended
June 30, |
| ||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2017
|
| |
2016
|
| ||||||||||||
Securities Available-for-Sale: | | | | | | ||||||||||||||||||||
Beginning Balance
|
| | | $ | 1,000 | | | | | $ | 500 | | | | | $ | 1,000 | | | | | $ | 500 | | |
Total realized and unrealized gains or (losses):
|
| | | | | ||||||||||||||||||||
Included in earnings
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Included in other comprehensive income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Purchases, issuances and settlements
|
| | | | — | | | | | | 250 | | | | | | — | | | | | | 250 | | |
Ending Balance
|
| | | $ | 1,000 | | | | | $ | 750 | | | | | $ | 1,000 | | | | | $ | 750 | | |
|
| | | | | | | | | | | | | | |
Fair Value Measurements at
June 30, 2017, Using |
| |||||||||||||||
| | |
Total Carrying
Amount in the Consolidated Balance Sheet |
| |
Assets
Measured at Fair Value |
| |
Quoted Prices
in Active Markets for Identical Assets |
| |
Significant
Other Observable Inputs |
| |
Significant
Unobservable Inputs |
| |||||||||||||||
| | |
6/30/2017
|
| |
6/30/2017
|
| |
(Level 1)
|
| |
(Level 2)
|
| |
(Level 3)
|
| |||||||||||||||
Loans held for sale
|
| | | $ | 2,497 | | | | | $ | 2,497 | | | | | $ | — | | | | | $ | 2,497 | | | | | $ | — | | |
Impaired loans
|
| | | | 2,038 | | | | | | 2,038 | | | | | | — | | | | | | — | | | | | | 2,038 | | |
Foreclosed assets
|
| | | | 1,381 | | | | | | 1,381 | | | | | | — | | | | | | — | | | | | | 1,381 | | |
Premises and equipment held for sale
|
| | | | 1,285 | | | | | | 1,285 | | | | | | — | | | | | | — | | | | | | 1,285 | | |
| | | | | | | | | | | | | | |
Fair Value Measurements at
December 31, 2016, Using |
| |||||||||||||||
| | |
Total Carrying
Amount in the Consolidated Balance Sheet |
| |
Assets
Measured at Fair Value |
| |
Quoted Prices
in Active Markets for Identical Assets |
| |
Significant
Other Observable Inputs |
| |
Significant
Unobservable Inputs |
| |||||||||||||||
| | |
12/31/2016
|
| |
12/31/2016
|
| |
(Level 1)
|
| |
(Level 2)
|
| |
(Level 3)
|
| |||||||||||||||
Loans held for sale
|
| | | $ | 206 | | | | | $ | 206 | | | | | $ | — | | | | | $ | 206 | | | | | $ | — | | |
Impaired loans
|
| | | | 2,179 | | | | | | 2,179 | | | | | | — | | | | | | — | | | | | | 2,179 | | |
Foreclosed assets
|
| | | | 1,682 | | | | | | 1,682 | | | | | | — | | | | | | — | | | | | | 1,682 | | |
Premises and equipment held for sale
|
| | | | 2,373 | | | | | | 2,373 | | | | | | — | | | | | | — | | | | | | 2,373 | | |
| | |
Total Carrying
Amount at June 30, 2017 |
| |
Valuation Methodology
|
| |
Range of Inputs
|
| |||
Recurring measurements: | | | | | |||||||||
Other debt securities
|
| | | $ | 1,000 | | | |
Probability of default
|
| |
0%
|
|
| | | | | | | | | Loss given default | | |
100%
|
|
Nonrecurring measurements: | | | | | |||||||||
Impaired loans
|
| | | $ | 2,038 | | | | Collateral discounts | | |
9 – 50%
|
|
Foreclosed assets
|
| | | $ | 1,381 | | | |
Discounted appraisals
|
| |
10 – 30%
|
|
Premises and equipment held for sale
|
| | | $ | 1,285 | | | |
Discounted appraisals
|
| |
10 – 50%
|
|
| | |
June 30, 2017
|
| |||||||||||||||||||||||||||
| | |
Carrying
Value |
| |
Estimated
Fair Value |
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||||||||
Financial assets: | | | | | | | |||||||||||||||||||||||||
Cash and cash equivalents
|
| | | $ | 52,278 | | | | | $ | 52,278 | | | | | $ | 52,278 | | | | | $ | — | | | | | $ | — | | |
Certificates of deposit
|
| | | | 15,190 | | | | | | 15,190 | | | | | | — | | | | | | 15,190 | | | | | | — | | |
Securities available-for-sale
|
| | | | 76,210 | | | | | | 76,210 | | | | | | — | | | | | | 75,210 | | | | | | 1,000 | | |
Securities held-to-maturity
|
| | | | 45,398 | | | | | | 45,790 | | | | | | — | | | | | | 45,790 | | | | | | — | | |
Loans held for sale
|
| | | | 2,497 | | | | | | 2,497 | | | | | | — | | | | | | 2,497 | | | | | | — | | |
Loans, net
|
| | | | 488,107 | | | | | | 470,730 | | | | | | — | | | | | | — | | | | | | 470,730 | | |
FHLB stock
|
| | | | 4,046 | | | | | | 4,046 | | | | | | — | | | | | | 4,046 | | | | | | — | | |
Accrued interest receivable
|
| | | | 1,715 | | | | | | 1,715 | | | | | | — | | | | | | 1,715 | | | | | | — | | |
Financial liabilities: | | | | | | | |||||||||||||||||||||||||
Deposits
|
| | | $ | 560,152 | | | | | $ | 558,570 | | | | | $ | — | | | | | $ | 558,570 | | | | | $ | — | | |
Subordinated debentures and subordinated promissory notes
|
| | | | 23,872 | | | | | | 23,872 | | | | | | — | | | | | | — | | | | | | 23,872 | | |
Borrowings
|
| | | | 80,000 | | | | | | 80,585 | | | | | | — | | | | | | 80,585 | | | | | | — | | |
Accrued interest payable
|
| | | | 404 | | | | | | 404 | | | | | | — | | | | | | 404 | | | | | | — | | |
| | |
December 31, 2016
|
| |||||||||||||||||||||||||||
| | |
Carrying
Value |
| |
Estimated
Fair Value |
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||||||||
Financial assets: | | | | | | | |||||||||||||||||||||||||
Cash and cash equivalents
|
| | | $ | 32,563 | | | | | $ | 32,563 | | | | | $ | 32,563 | | | | | $ | — | | | | | $ | — | | |
Certificates of deposit
|
| | | | 18,125 | | | | | | 18,125 | | | | | | — | | | | | | 18,125 | | | | | | — | | |
Securities available-for-sale
|
| | | | 58,141 | | | | | | 58,141 | | | | | | — | | | | | | 57,141 | | | | | | 1,000 | | |
Securities held-to-maturity
|
| | | | 51,205 | | | | | | 51,452 | | | | | | — | | | | | | 51,452 | | | | | | — | | |
Loans held for sale
|
| | | | 206 | | | | | | 206 | | | | | | — | | | | | | 206 | | | | | | — | | |
Loans, net
|
| | | | 497,357 | | | | | | 479,184 | | | | | | — | | | | | | — | | | | | | 479,184 | | |
FHLB stock
|
| | | | 3,596 | | | | | | 3,596 | | | | | | — | | | | | | 3,596 | | | | | | — | | |
Accrued interest receivable
|
| | | | 1,598 | | | | | | 1,598 | | | | | | — | | | | | | 1,598 | | | | | | — | | |
Financial liabilities: | | | | | | | |||||||||||||||||||||||||
Deposits
|
| | | $ | 553,531 | | | | | $ | 552,207 | | | | | $ | — | | | | | $ | 552,207 | | | | | $ | — | | |
Subordinated debentures and subordinated promissory notes
|
| | | | 23,872 | | | | | | 23,872 | | | | | | — | | | | | | — | | | | | | 23,872 | | |
Borrowings
|
| | | | 70,000 | | | | | | 70,896 | | | | | | — | | | | | | 70,896 | | | | | | — | | |
Accrued interest payable
|
| | | | 384 | | | | | | 384 | | | | | | — | | | | | | 384 | | | | | | — | | |
| | |
Actual Ratio
|
| |
Minimum For
Capital Adequacy Purposes |
| |
Minimum to be Well
Capitalized under Prompt Corrective Action Provisions |
| |||||||||||||||
| | |
6/30/2017
|
| |
12/31/2016
|
| |
Ratio
|
| |
Ratio
|
| ||||||||||||
Bank | | | | | | ||||||||||||||||||||
Total Capital (to Risk Weighted Assets)
|
| | | | 16.0% | | | | | | 15.4% | | | | | | 8.0% | | | | | | 10.0% | | |
Tier I Capital (to Risk Weighted Assets)
|
| | | | 14.7% | | | | | | 14.1% | | | | | | 6.0% | | | | | | 8.0% | | |
Common Equity Tier 1 Capital (to Risk Weighted Assets)
|
| | | | 14.7% | | | | | | 14.1% | | | | | | 4.5% | | | | | | 6.5% | | |
Tier I Capital (to Average Assets)
|
| | | | 11.3% | | | | | | 11.0% | | | | | | 4.0% | | | | | | 5.0% | | |
Company | | | | | | ||||||||||||||||||||
Total Capital (to Risk Weighted Assets)
|
| | | | 16.3% | | | | | | 15.6% | | | | | | 8.0% | | | | | | N/A | | |
Tier I Capital (to Risk Weighted Assets)
|
| | | | 13.0% | | | | | | 12.2% | | | | | | 6.0% | | | | | | N/A | | |
Common Equity Tier 1 Capital (to Risk Weighted Assets)
|
| | | | 11.2% | | | | | | 10.9% | | | | | | 4.5% | | | | | | N/A | | |
Tier I Capital (to Average Assets)
|
| | | | 9.9% | | | | | | 9.5% | | | | | | 4.0% | | | | | | N/A | | |
| | |
Restricted Stock
|
| |
Weighted Average
Grant-Date Fair Value |
| ||||||
Unvested at December 31, 2016:
|
| | | | 258,070 | | | | | $ | 8.49 | | |
Granted
|
| | | | — | | | | | | — | | |
Vested
|
| | | | (2,000) | | | | | | 8.90 | | |
Forfeited
|
| | | | (6,800) | | | | | | 8.08 | | |
Unvested at June 30, 2017:
|
| | | | 249,270 | | | | | $ | 8.50 | | |
|
| | | | | |
Page
|
| |||
ARTICLE I | | | MERGER | | | |
|
| | |
| | | | | | A-1 | | | ||
| | | | | | A-1 | | | ||
| | | | | | A-3 | | | ||
| | | | | | A-5 | | | ||
| | | | | | A-5 | | | ||
| | | | | | A-5 | | | ||
| | | | | | A-5 | | | ||
| | | | | | A-6 | | | ||
| | | | | | A-6 | | | ||
ARTICLE II | | | | | |
|
| | ||
| | | | | | A-6 | | | ||
| | | | | | A-6 | | | ||
| | | | | | A-7 | | | ||
| | | | | | A-8 | | | ||
| | | | | | A-8 | | | ||
| | | | | | A-8 | | | ||
| | | | | | A-8 | | | ||
| | | | | | A-8 | | | ||
| | | | | | A-9 | | | ||
| | | | | | A-9 | | | ||
| | | | | | A-10 | | | ||
| | | | | | A-10 | | | ||
| | | | | | A-10 | | | ||
| | | | | | A-11 | | | ||
ARTICLE III | | | | | |
|
| | ||
| | | | | | A-11 | | | ||
| | | | | | A-12 | | | ||
| | | | | | A-20 | | | ||
| | | | | | A-23 | | | ||
| | | | | | A-24 | | | ||
| | | | | | A-27 | | | ||
ARTICLE IV | | | | | |
|
| | ||
| | | | | | A-28 | | | ||
| | | | | | A-28 | | | ||
| | Insurance | | | | | A-28 | | | |
| | | | | | A-28 | | | ||
| | Dividends | | | | | A-28 | | | |
| | | | | | A-28 | | | ||
| | | | | | A-28 | | | ||
| | | | | | A-28 | | |
| | | | | |
Page
|
| |||
| | Loans | | | | | A-29 | | | |
| | Allowance | | | | | A-29 | | | |
| | | | | | A-29 | | | ||
| | | | | | A-29 | | | ||
| | Contracts | | | | | A-29 | | | |
| | | | | | A-29 | | | ||
| | | | | | A-29 | | | ||
| | | | | | A-29 | | | ||
| | Reports | | | | | A-29 | | | |
| | | | | | A-29 | | | ||
| | | | | | A-30 | | | ||
| | | | | | A-30 | | | ||
ARTICLE V | | | | | |
|
| | ||
| | Corporate | | | | | A-31 | | | |
| | | | | | A-31 | | | ||
| | | | | | A-32 | | | ||
| | | | | | A-32 | | | ||
| | | | | | A-32 | | | ||
| | Compliance | | | | | A-32 | | | |
| | | | | | A-32 | | | ||
ARTICLE VI | | | | | |
|
| | ||
| | | | | | A-33 | | | ||
| | | | | | A-33 | | | ||
| | | | | | A-33 | | | ||
| | | | | | A-34 | | | ||
ARTICLE VII | | | | | |
|
| | ||
| | | | | | A-34 | | | ||
| | | | | | A-34 | | | ||
| | | | | | A-34 | | | ||
| | | | | | A-34 | | | ||
| | | | |
|
| | |||
| | | | | | A-35 | | | ||
| | | | | | A-35 | | | ||
| | | | | | A-35 | | | ||
| | | | | | A-35 | | | ||
ARTICLE IX | | | | | |
|
| | ||
| | Warranties | | | | | A-35 | | | |
| | | | | | A-35 | | | ||
ARTICLE X | | | TERMINATION | | | |
|
| | |
| | | | | | A-35 | | | ||
| | Noncompliance | | | | | A-36 | | | |
| | | | | | A-36 | | | ||
| | | | | | A-36 | | |
| | | | | |
Page
|
| |||
| | | | | | A-36 | | | ||
| | Dissenters | | | | | A-36 | | | |
| | | | | | A-36 | | | ||
| | | | | | A-36 | | | ||
| | | | | | A-37 | | | ||
ARTICLE XI | | | | | |
|
| | ||
| | Notices | | | | | A-37 | | | |
| | | | | | A-37 | | | ||
| | | | | | A-38 | | | ||
| | Counterparts | | | | | A-38 | | | |
| | | | | | A-38 | | | ||
| | | | | | A-38 | | | ||
| | | | | | A-38 | | | ||
| | Jurisdiction | | | | | A-38 | | | |
| | | | | | A-39 | | | ||
| | Interpretation | | | | | A-39 | | |
|
1933 Act
|
| | | | A-7 | | |
|
Acquisition Proposal
|
| | | | A-8 | | |
|
Adverse Recommendation Change
|
| | | | A-7 | | |
|
Agreement
|
| | | | A-1 | | |
|
Allowance
|
| | | | A-21 | | |
|
Articles of Merger
|
| | | | A-1 | | |
|
Bank
|
| | | | A-1 | | |
|
Bank Merger
|
| | | | A-6 | | |
|
Bank Merger Agreement
|
| | | | A-6 | | |
|
Bank Stock
|
| | | | A-15 | | |
|
Buyer
|
| | | | A-1 | | |
|
Buyer 401(k) Plan
|
| | | | A-10 | | |
|
Buyer Bank
|
| | | | A-6 | | |
|
Buyer Exchange Act Reports
|
| | | | A-37 | | |
|
Buyer Registration Statement
|
| | | | A-7 | | |
|
Buyer Stock
|
| | | | A-2 | | |
|
Cancelled Shares
|
| | | | A-2 | | |
|
Cash Consideration
|
| | | | A-2 | | |
|
Cash Out Amount
|
| | | | A-2 | | |
|
Certificate
|
| | | | A-2 | | |
|
Certificate of Merger
|
| | | | A-1 | | |
|
Claim
|
| | | | A-12 | | |
|
Classified Asset
|
| | | | A-33 | | |
|
Closing
|
| | | | A-5 | | |
|
Closing Date
|
| | | | A-6 | | |
|
Closing Price
|
| | | | A-3 | | |
|
Code
|
| | | | A-1 | | |
|
Consent Order
|
| | | | A-35 | | |
|
Disclosure Memorandum
|
| | | | A-13 | | |
|
Dissenting Shares
|
| | | | A-3 | | |
|
DOJ
|
| | | | A-20 | | |
|
Effective Time
|
| | | | A-1 | | |
|
Employee Benefits
|
| | | | A-10 | | |
|
ERISA
|
| | | | A-29 | | |
|
ERISA Affiliate
|
| | | | A-29 | | |
|
ERISA Plans
|
| | | | A-29 | | |
|
Exchange Act
|
| | | | A-20 | | |
|
Exchange Agent
|
| | | | A-4 | | |
|
Exchange Fund
|
| | | | A-4 | | |
|
Exchange Ratio
|
| | | | A-2 | | |
|
FDIC
|
| | | | A-10 | | |
|
Federal Reserve
|
| | | | A-20 | | |
|
GAAP
|
| | | | A-15 | | |
|
GDBF
|
| | | | A-10 | | |
|
General Enforceability Exceptions
|
| | | | A-15 | | |
|
Georgia Code
|
| | | | A-1 | | |
|
Hazardous Material
|
| | | | A-25 | | |
|
Indemnified Party
|
| | | | A-12 | | |
|
IRS
|
| | | | A-29 | | |
|
Leased Property
|
| | | | A-27 | | |
|
Letter of Transmittal
|
| | | | A-4 | | |
|
Liens
|
| | | | A-17 | | |
|
Mailing Date
|
| | | | A-4 | | |
|
Material Adverse Effect
|
| | | | A-15 | | |
|
Material Contracts
|
| | | | A-26 | | |
|
Maximum Amount
|
| | | | A-12 | | |
|
Merger
|
| | | | A-1 | | |
|
Merger Consideration
|
| | | | A-2 | | |
|
Merger Consideration Price
|
| | | | A-2 | | |
|
NCCOB
|
| | | | A-10 | | |
|
NDA
|
| | | | A-35 | | |
|
New Certificates
|
| | | | A-4 | | |
|
Notice of Recommendation Change
|
| | | | A-8 | | |
|
Per Share Purchase Price
|
| | | | A-2 | | |
|
Permits
|
| | | | A-24 | | |
|
Person
|
| | | | A-5 | | |
|
Preferred Stock
|
| | | | A-15 | | |
|
Regulatory Agreement
|
| | | | A-20 | | |
|
Required Regulatory Approvals
|
| | | | A-10 | | |
|
Requisite Seller Shareholder Approval
|
| | | | A-40 | | |
|
Sandler
|
| | | | A-32 | | |
|
SEC
|
| | | | A-7 | | |
|
Seller
|
| | | | A-1 | | |
|
Seller 401(k) Plan
|
| | | | A-10 | | |
|
Seller Common Stock
|
| | | | A-2 | | |
|
Seller Continuing Employees
|
| | | | A-10 | | |
|
Seller Exchange Act Reports
|
| | | | A-20 | | |
|
Seller Financial Statements
|
| | | | A-19 | | |
|
Seller Leased Real Properties
|
| | | | A-28 | | |
|
Seller Leases
|
| | | | A-27 | | |
|
Seller Loans
|
| | | | A-21 | | |
|
Seller Plan
|
| | | | A-28 | | |
|
Seller Plans
|
| | | | A-28 | | |
|
Seller Proxy Materials
|
| | | | A-7 | | |
|
Seller Realty
|
| | | | A-28 | | |
|
Seller Recommendation
|
| | | | A-7 | | |
|
Seller Reports
|
| | | | A-20 | | |
|
Seller Restricted Share Award
|
| | | | A-2 | | |
|
Seller Stock
|
| | | | A-15 | | |
|
Seller Stock Option
|
| | | | A-2 | | |
|
Seller Stock Plans
|
| | | | A-2 | | |
|
Special Meeting
|
| | | | A-7 | | |
|
Stock Consideration
|
| | | | A-2 | | |
|
Superior Proposal
|
| | | | A-8 | | |
|
Tax
|
| | | | A-16 | | |
|
Tax Returns
|
| | | | A-17 | | |
|
Taxes
|
| | | | A-16 | | |
|
Termination Fee
|
| | | | A-43 | | |
|
To Buyer:
United Community Banks, Inc.
125 Highway 515 E Blairsville, Georgia 30512 Attention: Jimmy C. Tallent |
| |
To Seller:
Four Oaks Fincorp, Inc.
6114 U.S. 301 South Four Oaks, North Carolina 27524 Attention: David H. Rupp E-mail: dhrupp@fouroaksbank.com |
|
|
With copies to:
United Community Banks, Inc.
125 Highway 515 E Blairsville, Georgia 30512 Attention: Bradley J. Miller E-mail: brad_miller@ucbi.com and
Troutman Sanders LLP
600 Peachtree Street NE, Suite 5200 Atlanta, Georgia 30308 Attention: James W. Stevens E-mail: james.stevens@troutmansanders.com |
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With a copy to:
Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan L.L.P.
Wells Fargo Capital Center 150 Fayetteville Street, Suite 2300 Raleigh, North Carolina 27601 Attention: Geoffrey W. Adams E-mail: gadams@smithlaw.com |
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| | | | UNITED COMMUNITY BANKS, INC. | | |||
| | | | By: | | | /s/ Jimmy C. Tallent | |
| | | | | | | Name: Jimmy C. Tallent | |
| | | | | | | Title: Chairman and Chief Executive Officer | |
| | | | | ||||
| | | | FOUR OAKS FINCORP, INC. | | |||
| | | | By: | | | /s/ David H. Rupp | |
| | | | | | | Name: David H. Rupp | |
| | | | | | | Title: President and Chief Executive Officer | |
| UNITED COMMUNITY BANKS, INC. | | ||||||
| By: | | | /s/ Jimmy C. Tallent | | |||
| | | | Jimmy C. Tallent Chairman and Chief Executive Officer |
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Signature
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Title
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/s/ Jimmy C. Tallent
Jimmy C. Tallent
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Chairman and Chief Executive Officer
(Principal Executive Officer) |
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/s/ Jefferson L. Harralson
Jefferson L. Harralson
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Executive Vice President and Chief Financial Officer
(Principal Financial Officer) |
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/s/ Alan H. Kumler
Alan H. Kumler
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Senior Vice President and Chief Accounting Officer
(Principal Accounting Officer) |
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/s/ H. Lynn Harton
H. Lynn Harton
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President, Chief Operating Officer and Director
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/s/ Thomas A. Richlovsky
Thomas A. Richlovsky
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Lead Independent Director
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/s/ Robert Blalock
Robert Blalock
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Director
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/s/ L. Cathy Cox
L. Cathy Cox
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Director
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/s/ Kenneth L. Daniels
Kenneth L. Daniels
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Director
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/s/ W.C. Nelson, Jr.
W. C. Nelson, Jr.
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Director
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Signature
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Title
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/s/ David C. Shaver
David C. Shaver
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Director
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/s/ Tim Wallis
Tim Wallis
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Director
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/s/ David H. Wilkins
David H. Wilkins
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Director
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Exhibit
No. |
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Exhibit
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| 2.1 | | | Agreement and Plan of Merger, dated as of June 26, 2017, by and between United and Four Oaks (attached as Appendix A to the document that is a part of this Registration Statement). | |
| 2.2 | | | Support Agreement, dated June 26, 2017, by and between Kenneth R. Lehman and United. | |
| 5.1 | | | Opinion and Consent of Troutman Sanders LLP. | |
| 8.1 | | | Opinion and Consent of Troutman Sanders LLP as to the federal income tax consequences of the merger to United and Four Oaks. | |
| 8.2 | | | Opinion and Consent of Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, L.L.P. as to the federal income tax consequences of the merger to United and Four Oaks. | |
| 23.1 | | | Consent of PricewaterhouseCoopers LLP. | |
| 23.2 | | | Consent of Troutman Sanders LLP (included as part of Exhibit 5.1). | |
| 23.3 | | | Consent of Cherry Bekaert LLP. | |
| 24.1 | | | Power of Attorney (included on the Signature Page to the Registration Statement). | |
| 99.2 | | | Consent of Sandler O’Neill & Partners, L.P. | |