☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Louisiana
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27-1560715
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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Large accelerated filer
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☐
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Accelerated filer
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þ
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Non-accelerated filer
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☐ (Do not check if a smaller reporting company)
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Smaller reporting company
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☐
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Emerging growth company
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þ
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Item 1
.
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June 30, 2018
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December 31, 2017
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||||
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(Unaudited)
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ASSETS
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||||
Cash and due from banks
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$
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21,338
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$
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19,619
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Interest-bearing balances due from other banks
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13,483
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10,802
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||
Federal funds sold
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10
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|
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—
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Cash and cash equivalents
|
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34,831
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30,421
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||||
Available for sale securities at fair value (amortized cost of $247,317 and $220,077, respectively)
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241,587
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217,564
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Held to maturity securities at amortized cost (estimated fair value of $17,064 and $17,947, respectively)
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17,299
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17,997
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Loans, net of allowance for loan losses of $8,451 and $7,891, respectively
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1,291,860
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1,250,888
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Equity securities
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13,095
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9,798
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Bank premises and equipment, net of accumulated depreciation of $8,805 and $7,825, respectively
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39,253
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37,540
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Other real estate owned, net
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4,225
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3,837
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Accrued interest receivable
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4,842
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4,688
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Deferred tax asset
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1,429
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1,294
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Goodwill and other intangible assets, net
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19,952
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19,926
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Bank owned life insurance
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23,543
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23,231
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Other assets
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5,555
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5,550
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Total assets
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$
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1,697,471
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$
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1,622,734
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LIABILITIES
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Deposits:
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Noninterest-bearing
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$
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222,570
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$
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216,599
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Interest-bearing
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1,008,360
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1,008,638
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Total deposits
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1,230,930
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1,225,237
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Advances from Federal Home Loan Bank
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237,075
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166,658
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Repurchase agreements
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16,752
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21,935
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Subordinated debt, net of unamortized issuance costs
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18,191
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18,168
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Junior subordinated debt
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5,819
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5,792
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Accrued taxes and other liabilities
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11,474
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12,215
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Total liabilities
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1,520,241
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1,450,005
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STOCKHOLDERS’ EQUITY
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Preferred stock, no par value per share; 5,000,000 shares authorized
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—
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—
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Common stock, $1.00 par value per share; 40,000,000 shares authorized; 9,581,034 and 9,514,926 shares issued and outstanding, respectively
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9,581
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9,515
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Surplus
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132,166
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131,582
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Retained earnings
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39,258
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33,203
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Accumulated other comprehensive loss
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(3,775
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)
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(1,571
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)
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Total stockholders’ equity
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177,230
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172,729
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Total liabilities and stockholders’ equity
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$
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1,697,471
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$
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1,622,734
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Three months ended June 30,
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Six months ended June 30,
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||||||||||||
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2018
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2017
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2018
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2017
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||||||||
INTEREST INCOME
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Interest and fees on loans
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$
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16,223
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$
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10,559
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$
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31,849
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$
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20,563
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Interest on investment securities
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1,644
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1,199
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3,103
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2,228
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Other interest income
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142
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86
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235
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146
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Total interest income
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18,009
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11,844
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35,187
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22,937
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INTEREST EXPENSE
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Interest on deposits
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2,426
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1,827
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4,679
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3,680
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Interest on borrowings
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1,263
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715
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2,330
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1,095
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Total interest expense
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3,689
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2,542
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7,009
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4,775
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Net interest income
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14,320
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9,302
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28,178
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18,162
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Provision for loan losses
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567
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375
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1,192
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|
725
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Net interest income after provision for loan losses
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13,753
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8,927
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26,986
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17,437
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NONINTEREST INCOME
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Service charges on deposit accounts
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327
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96
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686
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193
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Gain on sale of investment securities, net
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22
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109
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22
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215
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(Loss) gain on sale of fixed assets, net
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(1
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)
|
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1
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89
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24
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Loss on sale of other real estate owned, net
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(4
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)
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(10
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)
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(4
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)
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(5
|
)
|
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Servicing fees and fee income on serviced loans
|
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253
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|
378
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|
541
|
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|
801
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||||
Other operating income
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596
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|
227
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|
931
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|
|
458
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||||
Total noninterest income
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1,193
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|
|
801
|
|
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2,265
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|
|
1,686
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Income before noninterest expense
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14,946
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|
|
9,728
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29,251
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19,123
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||||
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||||||||
NONINTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
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Depreciation and amortization
|
|
629
|
|
|
391
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|
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1,227
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|
|
767
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|
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Salaries and employee benefits
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6,495
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4,109
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12,543
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|
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8,059
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||||
Occupancy
|
|
335
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|
|
245
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|
|
715
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|
|
509
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||||
Data processing
|
|
565
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|
|
355
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|
|
1,107
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|
|
723
|
|
||||
Marketing
|
|
44
|
|
|
119
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|
|
82
|
|
|
147
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|
||||
Professional fees
|
|
228
|
|
|
231
|
|
|
483
|
|
|
463
|
|
||||
Acquisition expense
|
|
—
|
|
|
80
|
|
|
1,104
|
|
|
225
|
|
||||
Other operating expenses
|
|
1,864
|
|
|
1,398
|
|
|
3,461
|
|
|
2,719
|
|
||||
Total noninterest expense
|
|
10,160
|
|
|
6,928
|
|
|
20,722
|
|
|
13,612
|
|
||||
Income before income tax expense
|
|
4,786
|
|
|
2,800
|
|
|
8,529
|
|
|
5,511
|
|
||||
Income tax expense
|
|
966
|
|
|
877
|
|
|
2,307
|
|
|
1,724
|
|
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Net income
|
|
$
|
3,820
|
|
|
$
|
1,923
|
|
|
$
|
6,222
|
|
|
$
|
3,787
|
|
|
|
|
|
|
|
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||||||||
EARNINGS PER SHARE
|
|
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|
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|
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Basic earnings per share
|
|
$
|
0.39
|
|
|
$
|
0.22
|
|
|
$
|
0.64
|
|
|
$
|
0.48
|
|
Diluted earnings per share
|
|
0.39
|
|
|
0.22
|
|
|
0.64
|
|
|
0.47
|
|
||||
Cash dividends declared per common share
|
|
0.04
|
|
|
0.02
|
|
|
0.08
|
|
|
0.04
|
|
|
|
Three months ended June 30,
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Six months ended June 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income
|
|
$
|
3,820
|
|
|
$
|
1,923
|
|
|
$
|
6,222
|
|
|
$
|
3,787
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unrealized gain (loss) on investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unrealized (loss) gain, available for sale, net of tax (benefit) expense of ($195), $279, ($671) and $660, respectively
|
|
(734
|
)
|
|
518
|
|
|
(2,523
|
)
|
|
1,225
|
|
||||
Reclassification of realized gain, net of tax expense of $4, $38, $4 and $75, respectively
|
|
(17
|
)
|
|
(70
|
)
|
|
(17
|
)
|
|
(139
|
)
|
||||
Unrealized loss, transfer from available for sale to held to maturity, net of tax benefit of $0 for all respective periods
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Fair value of derivative financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Change in fair value of interest rate swap designated as a cash flow hedge, net of tax expense (benefit) of $19, ($23), $90 and $42, respectively
|
|
72
|
|
|
(43
|
)
|
|
337
|
|
|
77
|
|
||||
Total other comprehensive (loss) income
|
|
(680
|
)
|
|
404
|
|
|
(2,204
|
)
|
|
1,162
|
|
||||
Total comprehensive income
|
|
$
|
3,140
|
|
|
$
|
2,327
|
|
|
$
|
4,018
|
|
|
$
|
4,949
|
|
|
|
Common
Stock |
|
Surplus
|
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Total
Stockholders’ Equity |
||||||||||
Balance, December 31, 2016 (audited)
|
|
$
|
7,102
|
|
|
$
|
81,499
|
|
|
$
|
26,227
|
|
|
$
|
(2,071
|
)
|
|
$
|
112,757
|
|
Common stock issued in offering, net of direct costs of $1,991
|
|
1,624
|
|
|
30,885
|
|
|
—
|
|
|
—
|
|
|
32,509
|
|
|||||
Surrendered shares
|
|
(5
|
)
|
|
(104
|
)
|
|
—
|
|
|
—
|
|
|
(109
|
)
|
|||||
Options and warrants exercised
|
|
50
|
|
|
617
|
|
|
—
|
|
|
—
|
|
|
667
|
|
|||||
Dividends declared, $0.04 per share
|
|
—
|
|
|
—
|
|
|
(370
|
)
|
|
—
|
|
|
(370
|
)
|
|||||
Stock-based compensation
|
|
44
|
|
|
342
|
|
|
—
|
|
|
—
|
|
|
386
|
|
|||||
Net tax effect of stock-based compensation
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|||||
Net income
|
|
—
|
|
|
—
|
|
|
3,787
|
|
|
—
|
|
|
3,787
|
|
|||||
Other comprehensive income, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,162
|
|
|
1,162
|
|
|||||
Balance, June 30, 2017
|
|
$
|
8,815
|
|
|
$
|
113,246
|
|
|
$
|
29,644
|
|
|
$
|
(909
|
)
|
|
$
|
150,796
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at December 31, 2017 (audited)
|
|
$
|
9,515
|
|
|
$
|
131,582
|
|
|
$
|
33,203
|
|
|
$
|
(1,571
|
)
|
|
$
|
172,729
|
|
Surrendered shares
|
|
(7
|
)
|
|
(171
|
)
|
|
—
|
|
|
—
|
|
|
(178
|
)
|
|||||
Options and warrants exercised
|
|
73
|
|
|
905
|
|
|
—
|
|
|
—
|
|
|
978
|
|
|||||
Dividends declared, $0.08 per share
|
|
—
|
|
|
—
|
|
|
(719
|
)
|
|
—
|
|
|
(719
|
)
|
|||||
Stock-based compensation
|
|
28
|
|
|
496
|
|
|
—
|
|
|
—
|
|
|
524
|
|
|||||
Reclassification of tax effects of the Tax Cuts and Jobs Act
(1)
|
|
—
|
|
|
—
|
|
|
557
|
|
|
—
|
|
|
557
|
|
|||||
Shares repurchased
|
|
(28
|
)
|
|
(646
|
)
|
|
—
|
|
|
—
|
|
|
(674
|
)
|
|||||
Net income
|
|
—
|
|
|
—
|
|
|
6,222
|
|
|
—
|
|
|
6,222
|
|
|||||
Other comprehensive loss, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,204
|
)
|
|
(2,204
|
)
|
|||||
Impact of adoption of new accounting standards
(2)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|||||
Balance, June 30, 2018
|
|
$
|
9,581
|
|
|
$
|
132,166
|
|
|
$
|
39,258
|
|
|
$
|
(3,775
|
)
|
|
$
|
177,230
|
|
(1)
|
The Tax Cuts and Jobs Act, enacted on December 22, 2017, required the revaluation of the Company’s deferred tax assets and liabilities as of December 31, 2017 as a result of the lower corporate tax rates to be realized beginning January 1, 2018. The $
0.6 million
adjustment to retained earnings for the period ended June 30, 2018 represents a reclassification of the tax effects of the Tax Cuts and Jobs Act.
|
(2)
|
Represents the impact of adopting Accounting Standards Update (“ASU”) No. 2016-01. See Note 1 to the consolidated financial statements for more information.
|
|
|
Six months ended June 30,
|
||||||
|
|
2018
|
|
2017
|
||||
Net income
|
|
$
|
6,222
|
|
|
$
|
3,787
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation and amortization
|
|
1,227
|
|
|
767
|
|
||
Provision for loan losses
|
|
1,192
|
|
|
725
|
|
||
Amortization of purchase accounting adjustments
|
|
(1,281
|
)
|
|
1
|
|
||
Net amortization of securities
|
|
334
|
|
|
559
|
|
||
Gain on sale of investment securities, net
|
|
(22
|
)
|
|
(215
|
)
|
||
Gain on sale of fixed assets, net
|
|
(89
|
)
|
|
(24
|
)
|
||
Loss on sale of other real estate owned, net
|
|
4
|
|
|
5
|
|
||
Impairment of other real estate owned
|
|
—
|
|
|
183
|
|
||
FHLB stock dividend
|
|
(97
|
)
|
|
(39
|
)
|
||
Stock-based compensation
|
|
524
|
|
|
386
|
|
||
Deferred taxes
|
|
1,236
|
|
|
(101
|
)
|
||
Net change in value of bank owned life insurance
|
|
(312
|
)
|
|
(96
|
)
|
||
Amortization of subordinated debt issuance costs
|
|
23
|
|
|
12
|
|
||
Unrealized loss on equity securities per ASC 2016-01
|
|
14
|
|
|
—
|
|
||
Net change in:
|
|
|
|
|
||||
Accrued interest receivable
|
|
(154
|
)
|
|
22
|
|
||
Other assets
|
|
407
|
|
|
(409
|
)
|
||
Accrued taxes and other liabilities
|
|
(1,011
|
)
|
|
(6
|
)
|
||
Net cash provided by operating activities
|
|
8,217
|
|
|
5,557
|
|
||
|
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
|
|
|
||
Proceeds from sales of investment securities available for sale
|
|
—
|
|
|
19,049
|
|
||
Funds invested in securities available for sale
|
|
(41,723
|
)
|
|
(49,561
|
)
|
||
Proceeds from maturities, prepayments and calls of investment securities available for sale
|
|
13,327
|
|
|
11,338
|
|
||
Proceeds from maturities, prepayments and calls of investment securities held to maturity
|
|
671
|
|
|
596
|
|
||
Proceeds from redemption or sale of equity securities
|
|
521
|
|
|
2,000
|
|
||
Purchase of equity securities
|
|
(2,870
|
)
|
|
(3,624
|
)
|
||
Net increase in loans
|
|
(41,472
|
)
|
|
(39,991
|
)
|
||
Proceeds from sales of other real estate owned
|
|
37
|
|
|
47
|
|
||
Proceeds from the sales of fixed assets
|
|
9
|
|
|
327
|
|
||
Purchases of other real estate owned
|
|
(225
|
)
|
|
—
|
|
||
Purchases of fixed assets
|
|
(2,771
|
)
|
|
(837
|
)
|
||
Purchase of other investments
|
|
—
|
|
|
(624
|
)
|
||
Distributions from investments
|
|
13
|
|
|
12
|
|
||
Net cash used in investing activities
|
|
(74,483
|
)
|
|
(61,268
|
)
|
||
|
|
|
|
|
INVESTAR HOLDING CORPORATION
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED
|
||||||||
(Amounts in thousands)
|
||||||||
(Unaudited)
|
||||||||
|
|
|
|
|
||||
Cash flows from financing activities:
|
|
|
|
|
|
|
||
Net increase (decrease) in customer deposits
|
|
5,796
|
|
|
(12,962
|
)
|
||
Net decrease in repurchase agreements
|
|
(5,183
|
)
|
|
(2,342
|
)
|
||
Net increase in short-term FHLB advances
|
|
41,500
|
|
|
15,000
|
|
||
Proceeds from long-term FHLB advances
|
|
45,000
|
|
|
15,000
|
|
||
Repayment of long-term FHLB advances
|
|
(16,100
|
)
|
|
(3,518
|
)
|
||
Cash dividends paid on common stock
|
|
(642
|
)
|
|
(263
|
)
|
||
Proceeds from public offering of common stock, net of issuance costs
|
|
—
|
|
|
32,509
|
|
||
Proceeds from stock options and warrants exercised
|
|
979
|
|
|
667
|
|
||
Payments to repurchase common stock
|
|
(674
|
)
|
|
—
|
|
||
Proceeds from other borrowings
|
|
—
|
|
|
78
|
|
||
Repayment of other borrowings
|
|
—
|
|
|
(1,078
|
)
|
||
Proceeds from subordinated debt, net of issuance costs
|
|
—
|
|
|
18,133
|
|
||
Net cash provided by financing activities
|
|
70,676
|
|
|
61,224
|
|
||
|
|
|
|
|
||||
Net increase in cash and cash equivalents
|
|
4,410
|
|
|
5,513
|
|
||
Cash and cash equivalents, beginning of period
|
|
30,421
|
|
|
29,448
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
34,831
|
|
|
$
|
34,961
|
|
•
|
Securities to be held to maturity (“HTM”): bonds, notes, and debentures for which the Company has the positive intent and ability to hold to maturity are reported at cost, adjusted for premiums and discounts that are recognized in interest income using the interest method over the period to maturity.
|
•
|
Securities available for sale (“AFS”): available for sale securities consist of bonds, notes, and debentures that are available to meet the Company’s operating needs. These securities are reported at fair value.
|
|
|
Purchase Credit Impaired
|
||
Contractually required principal
|
|
$
|
5,123
|
|
Non-accretable difference
|
|
(700
|
)
|
|
Cash flows expected to be collected
|
|
4,423
|
|
|
Accretable yield
|
|
—
|
|
|
Fair value of acquired loans
|
|
$
|
4,423
|
|
|
|
Purchase Credit Impaired
|
||
Contractually required principal
|
|
$
|
4,557
|
|
Non-accretable difference
|
|
(671
|
)
|
|
Cash flows expected to be collected
|
|
3,886
|
|
|
Accretable yield
|
|
—
|
|
|
Fair value of acquired loans
|
|
$
|
3,886
|
|
|
Unaudited Pro Forma for the
|
||||||
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||
(dollars in thousands)
|
2017
|
|
2017
|
||||
Interest income
|
$
|
17,068
|
|
|
$
|
30,614
|
|
Noninterest income
|
1,476
|
|
|
2,738
|
|
||
Net income
|
3,121
|
|
|
5,777
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Earnings per common share - basic
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income allocated to common shareholders
|
|
$
|
3,764
|
|
|
$
|
1,923
|
|
|
$
|
6,136
|
|
|
$
|
3,787
|
|
Weighted-average basic shares outstanding
|
|
9,558,873
|
|
|
8,685,980
|
|
|
9,536,229
|
|
|
7,950,049
|
|
||||
Basic earnings per common share
|
|
$
|
0.39
|
|
|
$
|
0.22
|
|
|
$
|
0.64
|
|
|
$
|
0.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per common share - diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income allocated to common shareholders
|
|
$
|
3,764
|
|
|
$
|
1,923
|
|
|
$
|
6,135
|
|
|
$
|
3,787
|
|
Weighted-average basic shares outstanding
|
|
9,558,873
|
|
|
8,685,980
|
|
|
9,536,229
|
|
|
7,950,049
|
|
||||
Dilutive effect of securities
|
|
89,148
|
|
|
94,648
|
|
|
81,184
|
|
|
77,247
|
|
||||
Total weighted average diluted shares outstanding
|
|
9,648,021
|
|
|
8,780,628
|
|
|
9,617,413
|
|
|
8,027,296
|
|
||||
Diluted earnings per common share
|
|
$
|
0.39
|
|
|
$
|
0.22
|
|
|
$
|
0.64
|
|
|
$
|
0.47
|
|
|
|
Amortized Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized Losses |
|
Fair
Value
|
||||||||
June 30, 2018
|
|
|
|
|
||||||||||||
Obligations of U.S. government agencies and corporations
|
|
$
|
9,285
|
|
|
$
|
3
|
|
|
$
|
(199
|
)
|
|
$
|
9,089
|
|
Obligations of state and political subdivisions
|
|
35,209
|
|
|
4
|
|
|
(802
|
)
|
|
34,411
|
|
||||
Corporate bonds
|
|
19,394
|
|
|
88
|
|
|
(482
|
)
|
|
19,000
|
|
||||
Residential mortgage-backed securities
|
|
126,821
|
|
|
69
|
|
|
(3,124
|
)
|
|
123,766
|
|
||||
Commercial mortgage-backed securities
|
|
56,608
|
|
|
45
|
|
|
(1,332
|
)
|
|
55,321
|
|
||||
Total
|
|
$
|
247,317
|
|
|
$
|
209
|
|
|
$
|
(5,939
|
)
|
|
$
|
241,587
|
|
|
|
Amortized Cost
|
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
||||||||
December 31, 2017
|
|
|
|
|
||||||||||||
Obligations of U.S. government agencies and corporations
|
|
$
|
8,241
|
|
|
$
|
8
|
|
|
$
|
(81
|
)
|
|
$
|
8,168
|
|
Obligations of state and political subdivisions
|
|
35,572
|
|
|
87
|
|
|
(422
|
)
|
|
35,237
|
|
||||
Corporate bonds
|
|
16,428
|
|
|
112
|
|
|
(330
|
)
|
|
16,210
|
|
||||
Residential mortgage-backed securities
|
|
110,690
|
|
|
58
|
|
|
(1,270
|
)
|
|
109,478
|
|
||||
Commercial mortgage-backed securities
|
|
48,299
|
|
|
16
|
|
|
(686
|
)
|
|
47,629
|
|
||||
Equity securities
|
|
847
|
|
|
24
|
|
|
(29
|
)
|
|
842
|
|
||||
Total
|
|
$
|
220,077
|
|
|
$
|
305
|
|
|
$
|
(2,818
|
)
|
|
$
|
217,564
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Proceeds from sale
|
|
$
|
—
|
|
|
$
|
8,724
|
|
|
$
|
—
|
|
|
$
|
19,049
|
|
Gross gains
|
|
$
|
—
|
|
|
$
|
141
|
|
|
$
|
—
|
|
|
$
|
248
|
|
Gross losses
|
|
$
|
—
|
|
|
$
|
(32
|
)
|
|
$
|
—
|
|
|
$
|
(33
|
)
|
|
|
Amortized Cost
|
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
||||||||
June 30, 2018
|
|
|
|
|
||||||||||||
Obligations of state and political subdivisions
|
|
$
|
11,642
|
|
|
$
|
9
|
|
|
$
|
(52
|
)
|
|
$
|
11,599
|
|
Residential mortgage-backed securities
|
|
5,657
|
|
|
—
|
|
|
(192
|
)
|
|
5,465
|
|
||||
Total
|
|
$
|
17,299
|
|
|
$
|
9
|
|
|
$
|
(244
|
)
|
|
$
|
17,064
|
|
|
|
Amortized Cost
|
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
||||||||
December 31, 2017
|
|
|
|
|
||||||||||||
Obligations of state and political subdivisions
|
|
$
|
11,861
|
|
|
$
|
9
|
|
|
$
|
(15
|
)
|
|
$
|
11,855
|
|
Residential mortgage-backed securities
|
|
6,136
|
|
|
4
|
|
|
(48
|
)
|
|
6,092
|
|
||||
Total
|
|
$
|
17,997
|
|
|
$
|
13
|
|
|
$
|
(63
|
)
|
|
$
|
17,947
|
|
|
|
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||
|
|
Count
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses |
|
Fair Value
|
|
Unrealized
Losses |
|||||||||||||
June 30, 2018
|
|
|
|
|
|
|
|
||||||||||||||||||||
Obligations of U.S. government agencies and corporations
|
|
18
|
|
|
$
|
7,167
|
|
|
$
|
(131
|
)
|
|
$
|
1,751
|
|
|
$
|
(68
|
)
|
|
$
|
8,918
|
|
|
$
|
(199
|
)
|
Obligations of state and political subdivisions
|
|
63
|
|
|
23,093
|
|
|
(404
|
)
|
|
9,863
|
|
|
(398
|
)
|
|
32,956
|
|
|
(802
|
)
|
||||||
Corporate bonds
|
|
28
|
|
|
6,896
|
|
|
(70
|
)
|
|
5,835
|
|
|
(412
|
)
|
|
12,731
|
|
|
(482
|
)
|
||||||
Residential mortgage-backed securities
|
|
206
|
|
|
86,094
|
|
|
(1,945
|
)
|
|
31,571
|
|
|
(1,179
|
)
|
|
117,665
|
|
|
(3,124
|
)
|
||||||
Commercial mortgage-backed securities
|
|
95
|
|
|
29,397
|
|
|
(705
|
)
|
|
19,329
|
|
|
(627
|
)
|
|
48,726
|
|
|
(1,332
|
)
|
||||||
Total
|
|
410
|
|
|
$
|
152,647
|
|
|
$
|
(3,255
|
)
|
|
$
|
68,349
|
|
|
$
|
(2,684
|
)
|
|
$
|
220,996
|
|
|
$
|
(5,939
|
)
|
|
|
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||
|
|
Count
|
|
Fair Value
|
|
Unrealized
Losses |
|
Fair Value
|
|
Unrealized
Losses |
|
Fair Value
|
|
Unrealized
Losses |
|||||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
||||||||||||||||||||
Obligations of U.S. government agencies and corporations
|
|
14
|
|
|
$
|
5,815
|
|
|
$
|
(50
|
)
|
|
$
|
1,505
|
|
|
$
|
(31
|
)
|
|
$
|
7,320
|
|
|
$
|
(81
|
)
|
Obligations of state and political subdivisions
|
|
57
|
|
|
12,315
|
|
|
(77
|
)
|
|
9,930
|
|
|
(345
|
)
|
|
22,245
|
|
|
(422
|
)
|
||||||
Corporate bonds
|
|
20
|
|
|
1,116
|
|
|
(6
|
)
|
|
6,273
|
|
|
(324
|
)
|
|
7,389
|
|
|
(330
|
)
|
||||||
Residential mortgage-backed securities
|
|
159
|
|
|
71,893
|
|
|
(729
|
)
|
|
28,410
|
|
|
(541
|
)
|
|
100,303
|
|
|
(1,270
|
)
|
||||||
Commercial mortgage-backed securities
|
|
80
|
|
|
30,445
|
|
|
(406
|
)
|
|
11,216
|
|
|
(280
|
)
|
|
41,661
|
|
|
(686
|
)
|
||||||
Equity securities
|
|
1
|
|
|
—
|
|
|
—
|
|
|
478
|
|
|
(29
|
)
|
|
478
|
|
|
(29
|
)
|
||||||
Total
|
|
331
|
|
|
$
|
121,584
|
|
|
$
|
(1,268
|
)
|
|
$
|
57,812
|
|
|
$
|
(1,550
|
)
|
|
$
|
179,396
|
|
|
$
|
(2,818
|
)
|
|
|
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||
|
|
Count
|
|
Fair Value
|
|
Unrealized
Losses |
|
Fair Value
|
|
Unrealized
Losses |
|
Fair Value
|
|
Unrealized
Losses |
|||||||||||||
June 30, 2018
|
|
|
|
|
|
|
|
||||||||||||||||||||
Obligations of state and political subdivisions
|
|
1
|
|
|
$
|
5,750
|
|
|
$
|
(52
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,750
|
|
|
$
|
(52
|
)
|
Residential mortgage-backed securities
|
|
9
|
|
|
3,172
|
|
|
(87
|
)
|
|
2,294
|
|
|
(105
|
)
|
|
5,466
|
|
|
(192
|
)
|
||||||
Total
|
|
10
|
|
|
$
|
8,922
|
|
|
$
|
(139
|
)
|
|
$
|
2,294
|
|
|
$
|
(105
|
)
|
|
$
|
11,216
|
|
|
$
|
(244
|
)
|
|
|
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||
|
|
Count
|
|
Fair Value
|
|
Unrealized
Losses |
|
Fair Value
|
|
Unrealized
Losses |
|
Fair Value
|
|
Unrealized
Losses |
|||||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
||||||||||||||||||||
Obligations of state and political subdivisions
|
|
1
|
|
|
$
|
6,007
|
|
|
$
|
(15
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,007
|
|
|
$
|
(15
|
)
|
Residential mortgage-backed securities
|
|
6
|
|
|
1,601
|
|
|
(3
|
)
|
|
2,522
|
|
|
(45
|
)
|
|
4,123
|
|
|
(48
|
)
|
||||||
Total
|
|
7
|
|
|
$
|
7,608
|
|
|
$
|
(18
|
)
|
|
$
|
2,522
|
|
|
$
|
(45
|
)
|
|
$
|
10,130
|
|
|
$
|
(63
|
)
|
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost |
|
Fair
Value |
||||||||
June 30, 2018
|
|
|
|
|
||||||||||||
Due within one year
|
|
$
|
3,857
|
|
|
$
|
3,849
|
|
|
$
|
720
|
|
|
$
|
721
|
|
Due after one year through five years
|
|
13,966
|
|
|
13,867
|
|
|
3,245
|
|
|
3,250
|
|
||||
Due after five years through ten years
|
|
34,518
|
|
|
33,611
|
|
|
1,875
|
|
|
1,878
|
|
||||
Due after ten years
|
|
194,976
|
|
|
190,260
|
|
|
11,459
|
|
|
11,215
|
|
||||
Total debt securities
|
|
$
|
247,317
|
|
|
$
|
241,587
|
|
|
$
|
17,299
|
|
|
$
|
17,064
|
|
|
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||
December 31, 2017
|
|
|
|
|
||||||||||||
Due within one year
|
|
$
|
1,319
|
|
|
$
|
1,319
|
|
|
$
|
720
|
|
|
$
|
721
|
|
Due after one year through five years
|
|
15,379
|
|
|
15,331
|
|
|
3,245
|
|
|
3,249
|
|
||||
Due after five years through ten years
|
|
28,242
|
|
|
27,833
|
|
|
1,875
|
|
|
1,878
|
|
||||
Due after ten years
|
|
174,290
|
|
|
172,239
|
|
|
12,157
|
|
|
12,099
|
|
||||
Total debt securities
|
|
$
|
219,230
|
|
|
$
|
216,722
|
|
|
$
|
17,997
|
|
|
$
|
17,947
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Construction and development
|
|
$
|
165,395
|
|
|
$
|
157,667
|
|
1-4 Family
|
|
280,335
|
|
|
276,922
|
|
||
Multifamily
|
|
48,838
|
|
|
51,283
|
|
||
Farmland
|
|
20,144
|
|
|
23,838
|
|
||
Commercial real estate
|
|
580,266
|
|
|
537,364
|
|
||
Total mortgage loans on real estate
|
|
1,094,978
|
|
|
1,047,074
|
|
||
Commercial and industrial
|
|
145,554
|
|
|
135,392
|
|
||
Consumer
|
|
59,779
|
|
|
76,313
|
|
||
Total loans
|
|
$
|
1,300,311
|
|
|
$
|
1,258,779
|
|
|
|
June 30, 2018
|
||||||||||||||||||||||||||||||
|
|
Accruing
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
|
Current
|
|
30-59 Days Past Due
|
|
60-89 Days Past Due
|
|
90 Days or More
Past Due
|
|
Nonaccrual
|
|
Total Past Due & Nonaccrual
|
|
Acquired Impaired Loans
|
|
Total Loans
|
||||||||||||||||
Construction and development
|
|
$
|
164,658
|
|
|
$
|
65
|
|
|
$
|
489
|
|
|
$
|
30
|
|
|
$
|
101
|
|
|
$
|
685
|
|
|
$
|
52
|
|
|
$
|
165,395
|
|
1-4 Family
|
|
277,422
|
|
|
413
|
|
|
758
|
|
|
80
|
|
|
468
|
|
|
1,719
|
|
|
1,194
|
|
|
280,335
|
|
||||||||
Multifamily
|
|
47,809
|
|
|
209
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
209
|
|
|
820
|
|
|
48,838
|
|
||||||||
Farmland
|
|
17,798
|
|
|
82
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
82
|
|
|
2,264
|
|
|
20,144
|
|
||||||||
Commercial real estate
|
|
578,047
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
162
|
|
|
162
|
|
|
2,057
|
|
|
580,266
|
|
||||||||
Total mortgage loans on real estate
|
|
1,085,734
|
|
|
769
|
|
|
1,247
|
|
|
110
|
|
|
731
|
|
|
2,857
|
|
|
6,387
|
|
|
1,094,978
|
|
||||||||
Commercial and industrial
|
|
144,174
|
|
|
62
|
|
|
14
|
|
|
5
|
|
|
82
|
|
|
163
|
|
|
1,217
|
|
|
145,554
|
|
||||||||
Consumer
|
|
58,239
|
|
|
380
|
|
|
133
|
|
|
—
|
|
|
1,027
|
|
|
1,540
|
|
|
—
|
|
|
59,779
|
|
||||||||
Total loans
|
|
$
|
1,288,147
|
|
|
$
|
1,211
|
|
|
$
|
1,394
|
|
|
$
|
115
|
|
|
$
|
1,840
|
|
|
$
|
4,560
|
|
|
$
|
7,604
|
|
|
$
|
1,300,311
|
|
|
|
December 31, 2017
|
||||||||||||||||||||||||||||||
|
|
Accruing
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
|
Current
|
|
30-59 Days Past Due
|
|
60-89 Days Past Due
|
|
90 Days or More
Past Due
|
|
Nonaccrual
|
|
Total Past Due & Nonaccrual
|
|
Acquired Impaired Loans
|
|
Total Loans
|
||||||||||||||||
Construction and development
|
|
$
|
157,123
|
|
|
$
|
225
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
34
|
|
|
$
|
259
|
|
|
$
|
285
|
|
|
$
|
157,667
|
|
1-4 Family
|
|
273,321
|
|
|
1,396
|
|
|
185
|
|
|
56
|
|
|
478
|
|
|
2,115
|
|
|
1,486
|
|
|
276,922
|
|
||||||||
Multifamily
|
|
50,271
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,012
|
|
|
51,283
|
|
||||||||
Farmland
|
|
19,619
|
|
|
—
|
|
|
—
|
|
|
58
|
|
|
—
|
|
|
58
|
|
|
4,161
|
|
|
23,838
|
|
||||||||
Commercial real estate
|
|
535,014
|
|
|
107
|
|
|
89
|
|
|
—
|
|
|
67
|
|
|
263
|
|
|
2,087
|
|
|
537,364
|
|
||||||||
Total mortgage loans on real estate
|
|
1,035,348
|
|
|
1,728
|
|
|
274
|
|
|
114
|
|
|
579
|
|
|
2,695
|
|
|
9,031
|
|
|
1,047,074
|
|
||||||||
Commercial and industrial
|
|
133,009
|
|
|
977
|
|
|
67
|
|
|
—
|
|
|
10
|
|
|
1,054
|
|
|
1,329
|
|
|
135,392
|
|
||||||||
Consumer
|
|
74,409
|
|
|
610
|
|
|
152
|
|
|
20
|
|
|
1,118
|
|
|
1,900
|
|
|
4
|
|
|
76,313
|
|
||||||||
Total loans
|
|
$
|
1,242,766
|
|
|
$
|
3,315
|
|
|
$
|
493
|
|
|
$
|
134
|
|
|
$
|
1,707
|
|
|
$
|
5,649
|
|
|
$
|
10,364
|
|
|
$
|
1,258,779
|
|
|
|
June 30, 2018
|
||||||||||||||
|
|
Pass
|
|
Special
Mention
|
|
Substandard
|
|
Total
|
||||||||
Construction and development
|
|
$
|
165,258
|
|
|
$
|
—
|
|
|
$
|
137
|
|
|
$
|
165,395
|
|
1-4 Family
|
|
279,457
|
|
|
70
|
|
|
808
|
|
|
280,335
|
|
||||
Multifamily
|
|
48,838
|
|
|
—
|
|
|
—
|
|
|
48,838
|
|
||||
Farmland
|
|
17,880
|
|
|
—
|
|
|
2,264
|
|
|
20,144
|
|
||||
Commercial real estate
|
|
580,104
|
|
|
—
|
|
|
162
|
|
|
580,266
|
|
||||
Total mortgage loans on real estate
|
|
1,091,537
|
|
|
70
|
|
|
3,371
|
|
|
1,094,978
|
|
||||
Commercial and industrial
|
|
145,482
|
|
|
—
|
|
|
72
|
|
|
145,554
|
|
||||
Consumer
|
|
58,489
|
|
|
264
|
|
|
1,026
|
|
|
59,779
|
|
||||
Total loans
|
|
$
|
1,295,508
|
|
|
$
|
334
|
|
|
$
|
4,469
|
|
|
$
|
1,300,311
|
|
|
|
December 31, 2017
|
||||||||||||||
|
|
Pass
|
|
Special
Mention
|
|
Substandard
|
|
Total
|
||||||||
Construction and development
|
|
$
|
157,385
|
|
|
$
|
—
|
|
|
$
|
282
|
|
|
$
|
157,667
|
|
1-4 Family
|
|
275,492
|
|
|
74
|
|
|
1,356
|
|
|
276,922
|
|
||||
Multifamily
|
|
51,283
|
|
|
—
|
|
|
—
|
|
|
51,283
|
|
||||
Farmland
|
|
19,611
|
|
|
2,773
|
|
|
1,454
|
|
|
23,838
|
|
||||
Commercial real estate
|
|
536,741
|
|
|
—
|
|
|
623
|
|
|
537,364
|
|
||||
Total mortgage loans on real estate
|
|
1,040,512
|
|
|
2,847
|
|
|
3,715
|
|
|
1,047,074
|
|
||||
Commercial and industrial
|
|
134,522
|
|
|
—
|
|
|
870
|
|
|
135,392
|
|
||||
Consumer
|
|
74,934
|
|
|
258
|
|
|
1,121
|
|
|
76,313
|
|
||||
Total loans
|
|
$
|
1,249,968
|
|
|
$
|
3,105
|
|
|
$
|
5,706
|
|
|
$
|
1,258,779
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Balance, beginning of period
|
|
$
|
31,153
|
|
|
$
|
19,957
|
|
New loans
|
|
7,573
|
|
|
24,428
|
|
||
Repayments and changes in relationship
|
|
(7,358
|
)
|
|
(13,232
|
)
|
||
Balance, end of period
|
|
$
|
31,368
|
|
|
$
|
31,153
|
|
|
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Balance at January 1,
|
|
$
|
—
|
|
|
$
|
250
|
|
|
$
|
—
|
|
|
$
|
275
|
|
Loan disposals
|
|
—
|
|
|
(250
|
)
|
|
—
|
|
|
(250
|
)
|
||||
Accretion to interest income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
||||
Balance at June 30,
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Balance, beginning of period
|
|
$
|
8,130
|
|
|
$
|
7,243
|
|
|
$
|
7,891
|
|
|
$
|
7,051
|
|
Provision for loan losses
|
|
567
|
|
|
375
|
|
|
1,192
|
|
|
725
|
|
||||
Loans charged off
|
|
(291
|
)
|
|
(314
|
)
|
|
(737
|
)
|
|
(480
|
)
|
||||
Recoveries
|
|
45
|
|
|
16
|
|
|
105
|
|
|
24
|
|
||||
Balance, end of period
|
|
$
|
8,451
|
|
|
$
|
7,320
|
|
|
$
|
8,451
|
|
|
$
|
7,320
|
|
|
|
Three months ended June 30, 2018
|
||||||||||||||||||||||||||||||
|
|
Construction & Development
|
|
Farmland
|
|
1-4 Family
|
|
Multifamily
|
|
Commercial Real Estate
|
|
Commercial &
Industrial |
|
Consumer
|
|
Total
|
||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
$
|
974
|
|
|
$
|
63
|
|
|
$
|
1,283
|
|
|
$
|
359
|
|
|
$
|
3,608
|
|
|
$
|
935
|
|
|
$
|
908
|
|
|
$
|
8,130
|
|
Provision
|
|
58
|
|
|
3
|
|
|
81
|
|
|
(40
|
)
|
|
209
|
|
|
246
|
|
|
10
|
|
|
567
|
|
||||||||
Charge-offs
|
|
(16
|
)
|
|
—
|
|
|
(28
|
)
|
|
—
|
|
|
—
|
|
|
(141
|
)
|
|
(106
|
)
|
|
(291
|
)
|
||||||||
Recoveries
|
|
2
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
32
|
|
|
45
|
|
||||||||
Ending balance
|
|
$
|
1,018
|
|
|
$
|
66
|
|
|
$
|
1,339
|
|
|
$
|
319
|
|
|
$
|
3,817
|
|
|
$
|
1,048
|
|
|
$
|
844
|
|
|
$
|
8,451
|
|
|
|
Three months ended June 30, 2017
|
||||||||||||||||||||||||||||||
|
|
Construction & Development
|
|
Farmland
|
|
1-4 Family
|
|
Multifamily
|
|
Commercial Real Estate
|
|
Commercial &
Industrial |
|
Consumer
|
|
Total
|
||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
$
|
694
|
|
|
$
|
54
|
|
|
$
|
1,237
|
|
|
$
|
374
|
|
|
$
|
2,908
|
|
|
$
|
744
|
|
|
$
|
1,232
|
|
|
$
|
7,243
|
|
Provision
|
|
101
|
|
|
—
|
|
|
38
|
|
|
(13
|
)
|
|
128
|
|
|
132
|
|
|
(11
|
)
|
|
375
|
|
||||||||
Charge-offs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(193
|
)
|
|
(121
|
)
|
|
(314
|
)
|
||||||||
Recoveries
|
|
11
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
16
|
|
||||||||
Ending balance
|
|
$
|
806
|
|
|
$
|
54
|
|
|
$
|
1,276
|
|
|
$
|
361
|
|
|
$
|
3,036
|
|
|
$
|
683
|
|
|
$
|
1,104
|
|
|
$
|
7,320
|
|
|
|
Six months ended June 30, 2018
|
||||||||||||||||||||||||||||||
|
|
Construction & Development
|
|
Farmland
|
|
1-4 Family
|
|
Multifamily
|
|
Commercial Real Estate
|
|
Commercial & Industrial
|
|
Consumer
|
|
Total
|
||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
$
|
945
|
|
|
$
|
60
|
|
|
$
|
1,287
|
|
|
$
|
332
|
|
|
$
|
3,599
|
|
|
$
|
693
|
|
|
$
|
975
|
|
|
$
|
7,891
|
|
Provision
|
|
81
|
|
|
6
|
|
|
81
|
|
|
(13
|
)
|
|
218
|
|
|
765
|
|
|
54
|
|
|
1,192
|
|
||||||||
Charge-offs
|
|
(16
|
)
|
|
—
|
|
|
(35
|
)
|
|
—
|
|
|
—
|
|
|
(451
|
)
|
|
(235
|
)
|
|
(737
|
)
|
||||||||
Recoveries
|
|
8
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
41
|
|
|
50
|
|
|
105
|
|
||||||||
Ending balance
|
|
$
|
1,018
|
|
|
$
|
66
|
|
|
$
|
1,339
|
|
|
$
|
319
|
|
|
$
|
3,817
|
|
|
$
|
1,048
|
|
|
$
|
844
|
|
|
$
|
8,451
|
|
Ending allowance balance for loans individually evaluated for impairment
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
296
|
|
|
$
|
296
|
|
Ending allowance balance for loans acquired with deteriorated credit quality
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Ending allowance balance for loans collectively evaluated for impairment
|
|
$
|
1,018
|
|
|
$
|
66
|
|
|
$
|
1,339
|
|
|
$
|
319
|
|
|
$
|
3,817
|
|
|
$
|
1,048
|
|
|
$
|
548
|
|
|
$
|
8,155
|
|
Loans receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance of loans individually evaluated for impairment
|
|
$
|
230
|
|
|
$
|
—
|
|
|
$
|
1,248
|
|
|
$
|
—
|
|
|
$
|
711
|
|
|
$
|
89
|
|
|
$
|
1,010
|
|
|
$
|
3,288
|
|
Balance of loans acquired with deteriorated credit quality
|
|
52
|
|
|
2,264
|
|
|
1,194
|
|
|
820
|
|
|
2,057
|
|
|
1,217
|
|
|
—
|
|
|
7,604
|
|
||||||||
Balance of loans collectively evaluated for impairment
|
|
165,113
|
|
|
17,880
|
|
|
277,893
|
|
|
48,018
|
|
|
577,498
|
|
|
144,248
|
|
|
58,769
|
|
|
1,289,419
|
|
||||||||
Total period-end balance
|
|
$
|
165,395
|
|
|
$
|
20,144
|
|
|
$
|
280,335
|
|
|
$
|
48,838
|
|
|
$
|
580,266
|
|
|
$
|
145,554
|
|
|
$
|
59,779
|
|
|
$
|
1,300,311
|
|
|
|
Six months ended June 30, 2017
|
||||||||||||||||||||||||||||||
|
|
Construction & Development
|
|
Farmland
|
|
1-4 Family
|
|
Multifamily
|
|
Commercial Real Estate
|
|
Commercial & Industrial
|
|
Consumer
|
|
Total
|
||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
$
|
579
|
|
|
$
|
60
|
|
|
$
|
1,377
|
|
|
$
|
355
|
|
|
$
|
2,499
|
|
|
$
|
759
|
|
|
$
|
1,422
|
|
|
$
|
7,051
|
|
Provision
|
|
213
|
|
|
(6
|
)
|
|
(103
|
)
|
|
6
|
|
|
537
|
|
|
117
|
|
|
(39
|
)
|
|
725
|
|
||||||||
Charge-offs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(193
|
)
|
|
(287
|
)
|
|
(480
|
)
|
||||||||
Recoveries
|
|
14
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
24
|
|
||||||||
Ending balance
|
|
$
|
806
|
|
|
$
|
54
|
|
|
$
|
1,276
|
|
|
$
|
361
|
|
|
$
|
3,036
|
|
|
$
|
683
|
|
|
$
|
1,104
|
|
|
$
|
7,320
|
|
Ending allowance balance for loans individually evaluated for impairment
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
297
|
|
|
$
|
297
|
|
Ending allowance balance for loans collectively evaluated for impairment
|
|
806
|
|
|
54
|
|
|
1,276
|
|
|
361
|
|
|
3,036
|
|
|
683
|
|
|
807
|
|
|
7,023
|
|
||||||||
Ending allowance balance for loans acquired with deteriorated credit quality
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Loans receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance of loans individually evaluated for impairment
|
|
$
|
189
|
|
|
$
|
—
|
|
|
$
|
1,651
|
|
|
$
|
—
|
|
|
$
|
595
|
|
|
$
|
26
|
|
|
$
|
1,063
|
|
|
$
|
3,524
|
|
Balance of loans collectively evaluated for impairment
|
|
109,438
|
|
|
8,006
|
|
|
176,328
|
|
|
46,109
|
|
|
407,928
|
|
|
98,811
|
|
|
82,816
|
|
|
929,436
|
|
||||||||
Total period-end balance
|
|
$
|
109,627
|
|
|
$
|
8,006
|
|
|
$
|
177,979
|
|
|
$
|
46,109
|
|
|
$
|
408,523
|
|
|
$
|
98,837
|
|
|
$
|
83,879
|
|
|
$
|
932,960
|
|
Balance of loans acquired with deteriorated credit quality
|
|
$
|
207
|
|
|
$
|
—
|
|
|
$
|
483
|
|
|
$
|
1,035
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,725
|
|
|
|
June 30, 2018
|
||||||||||
|
|
Recorded Investment
|
|
Unpaid Principal Balance
|
|
Related Allowance
|
||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Construction and development
|
|
$
|
230
|
|
|
$
|
248
|
|
|
$
|
—
|
|
1-4 Family
|
|
1,248
|
|
|
1,284
|
|
|
—
|
|
|||
Commercial real estate
|
|
711
|
|
|
727
|
|
|
—
|
|
|||
Total mortgage loans on real estate
|
|
2,189
|
|
|
2,259
|
|
|
—
|
|
|||
Commercial and industrial
|
|
89
|
|
|
88
|
|
|
—
|
|
|||
Consumer
|
|
208
|
|
|
224
|
|
|
—
|
|
|||
Total
|
|
2,486
|
|
|
2,571
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
||||||
With related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Consumer
|
|
802
|
|
|
853
|
|
|
296
|
|
|||
Total
|
|
802
|
|
|
853
|
|
|
296
|
|
|||
|
|
|
|
|
|
|
||||||
Total loans:
|
|
|
|
|
|
|
|
|
|
|||
Construction and development
|
|
230
|
|
|
248
|
|
|
—
|
|
|||
1-4 Family
|
|
1,248
|
|
|
1,284
|
|
|
—
|
|
|||
Commercial real estate
|
|
711
|
|
|
727
|
|
|
—
|
|
|||
Total mortgage loans on real estate
|
|
2,189
|
|
|
2,259
|
|
|
—
|
|
|||
Commercial and industrial
|
|
89
|
|
|
88
|
|
|
—
|
|
|||
Consumer
|
|
1,010
|
|
|
1,077
|
|
|
296
|
|
|||
Total
|
|
$
|
3,288
|
|
|
$
|
3,424
|
|
|
$
|
296
|
|
|
|
December 31, 2017
|
||||||||||
|
|
Recorded Investment
|
|
Unpaid Principal Balance
|
|
Related Allowance
|
||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Construction and development
|
|
$
|
182
|
|
|
$
|
202
|
|
|
$
|
—
|
|
1-4 Family
|
|
1,136
|
|
|
1,169
|
|
|
—
|
|
|||
Commercial real estate
|
|
640
|
|
|
654
|
|
|
—
|
|
|||
Total mortgage loans on real estate
|
|
1,958
|
|
|
2,025
|
|
|
—
|
|
|||
Consumer
|
|
168
|
|
|
217
|
|
|
—
|
|
|||
Total
|
|
2,126
|
|
|
2,242
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
||||||
With related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Consumer
|
|
918
|
|
|
956
|
|
|
304
|
|
|||
Total
|
|
918
|
|
|
956
|
|
|
304
|
|
|||
|
|
|
|
|
|
|
||||||
Total loans:
|
|
|
|
|
|
|
|
|
|
|||
Construction and development
|
|
182
|
|
|
202
|
|
|
—
|
|
|||
1-4 Family
|
|
1,136
|
|
|
1,169
|
|
|
—
|
|
|||
Commercial real estate
|
|
640
|
|
|
654
|
|
|
—
|
|
|||
Total mortgage loans on real estate
|
|
1,958
|
|
|
2,025
|
|
|
—
|
|
|||
Consumer
|
|
1,086
|
|
|
1,173
|
|
|
304
|
|
|||
Total
|
|
$
|
3,044
|
|
|
$
|
3,198
|
|
|
$
|
304
|
|
|
|
Three months ended June 30,
|
||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Construction and development
|
|
$
|
182
|
|
|
$
|
2
|
|
|
$
|
339
|
|
|
$
|
1
|
|
1-4 Family
|
|
1,209
|
|
|
10
|
|
|
1,655
|
|
|
26
|
|
||||
Commercial real estate
|
|
869
|
|
|
8
|
|
|
599
|
|
|
25
|
|
||||
Total mortgage loans on real estate
|
|
2,260
|
|
|
20
|
|
|
2,593
|
|
|
52
|
|
||||
Commercial and industrial
|
|
215
|
|
|
—
|
|
|
26
|
|
|
—
|
|
||||
Consumer
|
|
241
|
|
|
—
|
|
|
234
|
|
|
—
|
|
||||
Total
|
|
2,716
|
|
|
20
|
|
|
2,853
|
|
|
52
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
With related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Consumer
|
|
785
|
|
|
—
|
|
|
891
|
|
|
—
|
|
||||
Total
|
|
785
|
|
|
—
|
|
|
891
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Construction and development
|
|
182
|
|
|
2
|
|
|
339
|
|
|
1
|
|
||||
1-4 Family
|
|
1,209
|
|
|
10
|
|
|
1,655
|
|
|
26
|
|
||||
Commercial real estate
|
|
869
|
|
|
8
|
|
|
599
|
|
|
25
|
|
||||
Total mortgage loans on real estate
|
|
2,260
|
|
|
20
|
|
|
2,593
|
|
|
52
|
|
||||
Commercial and industrial
|
|
215
|
|
|
—
|
|
|
26
|
|
|
—
|
|
||||
Consumer
|
|
1,026
|
|
|
—
|
|
|
1,125
|
|
|
—
|
|
||||
Total
|
|
$
|
3,501
|
|
|
$
|
20
|
|
|
$
|
3,744
|
|
|
$
|
52
|
|
|
|
Six months ended June 30,
|
||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||
|
|
Average
Recorded Investment |
|
Interest
Income Recognized |
|
Average
Recorded Investment |
|
Interest
Income Recognized |
||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Construction and development
|
|
$
|
171
|
|
|
$
|
4
|
|
|
$
|
490
|
|
|
$
|
6
|
|
1-4 Family
|
|
1,210
|
|
|
21
|
|
|
1,661
|
|
|
43
|
|
||||
Commercial real estate
|
|
1,029
|
|
|
16
|
|
|
603
|
|
|
27
|
|
||||
Total mortgage loans on real estate
|
|
2,410
|
|
|
41
|
|
|
2,754
|
|
|
76
|
|
||||
Commercial and industrial
|
|
480
|
|
|
—
|
|
|
234
|
|
|
—
|
|
||||
Consumer
|
|
296
|
|
|
—
|
|
|
300
|
|
|
1
|
|
||||
Total
|
|
3,186
|
|
|
41
|
|
|
3,288
|
|
|
77
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
With related allowance recorded:
|
|
|
|
|
|
|
|
|
||||||||
Consumer
|
|
785
|
|
|
—
|
|
|
837
|
|
|
1
|
|
||||
Total
|
|
785
|
|
|
—
|
|
|
837
|
|
|
1
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total loans:
|
|
|
|
|
|
|
|
|
||||||||
Construction and development
|
|
171
|
|
|
4
|
|
|
490
|
|
|
6
|
|
||||
1-4 Family
|
|
1,210
|
|
|
21
|
|
|
1,661
|
|
|
43
|
|
||||
Commercial real estate
|
|
1,029
|
|
|
16
|
|
|
603
|
|
|
27
|
|
||||
Total mortgage loans on real estate
|
|
2,410
|
|
|
41
|
|
|
2,754
|
|
|
76
|
|
||||
Commercial and industrial
|
|
480
|
|
|
—
|
|
|
234
|
|
|
—
|
|
||||
Consumer
|
|
1,081
|
|
|
—
|
|
|
1,137
|
|
|
2
|
|
||||
Total
|
|
$
|
3,971
|
|
|
$
|
41
|
|
|
$
|
4,125
|
|
|
$
|
78
|
|
|
|
June 30, 2018
|
|
June 30, 2017
|
||||||||||||||||
Troubled Debt Restructurings
|
|
Number of Contracts
|
|
Pre- Modification
Outstanding Recorded Investment |
|
Post- Modification
Outstanding Recorded Investment |
|
Number of Contracts
|
|
Pre- Modification
Outstanding Recorded Investment |
|
Post- Modification
Outstanding Recorded Investment |
||||||||
1-4 Family
|
|
1
|
|
$
|
122
|
|
|
$
|
122
|
|
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
Commercial and industrial
|
|
1
|
|
7
|
|
|
7
|
|
|
—
|
|
—
|
|
|
—
|
|
||||
Total
|
|
|
|
$
|
129
|
|
|
$
|
129
|
|
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Three months ended June 30,
|
||||||||||||||||||||||
|
2018
|
|
2017
|
||||||||||||||||||||
|
Beginning of Period
|
|
Net Change
|
|
End of Period
|
|
Beginning of Period
|
|
Net Change
|
|
End of Period
|
||||||||||||
Unrealized (loss) gain, available for sale, net
|
$
|
(1,860
|
)
|
|
$
|
(734
|
)
|
|
$
|
(2,594
|
)
|
|
$
|
306
|
|
|
$
|
518
|
|
|
$
|
824
|
|
Reclassification of realized gain, net
|
(1,914
|
)
|
|
(17
|
)
|
|
(1,931
|
)
|
|
(1,752
|
)
|
|
(70
|
)
|
|
(1,822
|
)
|
||||||
Unrealized loss, transfer from available for sale to held to maturity, net
|
7
|
|
|
(1
|
)
|
|
6
|
|
|
8
|
|
|
(1
|
)
|
|
7
|
|
||||||
Change in fair value of interest rate swap designated as a cash flow hedge, net
|
672
|
|
|
72
|
|
|
744
|
|
|
125
|
|
|
(43
|
)
|
|
82
|
|
||||||
Accumulated other comprehensive (loss) income
|
$
|
(3,095
|
)
|
|
$
|
(680
|
)
|
|
$
|
(3,775
|
)
|
|
$
|
(1,313
|
)
|
|
$
|
404
|
|
|
$
|
(909
|
)
|
|
Six months ended June 30,
|
||||||||||||||||||||||
|
2018
|
|
2017
|
||||||||||||||||||||
|
Beginning of Period
|
|
Net Change
|
|
End of Period
|
|
Beginning of Period
|
|
Net Change
|
|
End of Period
|
||||||||||||
Unrealized (loss) gain, available for sale, net
|
$
|
(71
|
)
|
|
$
|
(2,523
|
)
|
|
$
|
(2,594
|
)
|
|
$
|
(401
|
)
|
|
$
|
1,225
|
|
|
$
|
824
|
|
Reclassification of realized gain, net
|
(1,914
|
)
|
|
(17
|
)
|
|
(1,931
|
)
|
|
(1,683
|
)
|
|
(139
|
)
|
|
(1,822
|
)
|
||||||
Unrealized loss, transfer from available for sale to held to maturity, net
|
7
|
|
|
(1
|
)
|
|
6
|
|
|
8
|
|
|
(1
|
)
|
|
7
|
|
||||||
Change in fair value of interest rate swap designated as a cash flow hedge, net
|
407
|
|
|
337
|
|
|
744
|
|
|
5
|
|
|
77
|
|
|
82
|
|
||||||
Accumulated other comprehensive (loss) income
|
$
|
(1,571
|
)
|
|
$
|
(2,204
|
)
|
|
$
|
(3,775
|
)
|
|
$
|
(2,071
|
)
|
|
$
|
1,162
|
|
|
$
|
(909
|
)
|
|
|
|
||
Expected dividends
|
|
0.52
|
%
|
|
Expected volatility
|
|
24.99
|
%
|
|
Risk-free interest rate
|
|
2.68
|
%
|
|
Expected term (in years)
|
|
6.5
|
|
|
Weighted-average grant date fair value
|
|
$
|
7.16
|
|
|
|
Six months ended June 30,
|
||||||||||||
|
|
2018
|
|
2017
|
||||||||||
|
|
Number
of Options
|
|
Weighted Average
Exercise Price
|
|
Number
of Options
|
|
Weighted Average
Exercise Price
|
||||||
Outstanding at beginning of period
|
|
322,917
|
|
|
$
|
15.09
|
|
|
319,364
|
|
|
$
|
14.37
|
|
Granted
|
|
31,788
|
|
|
24.30
|
|
|
36,177
|
|
|
20.25
|
|
||
Forfeited
|
|
—
|
|
|
—
|
|
|
(5,334
|
)
|
|
14.00
|
|
||
Exercised
|
|
(8,501
|
)
|
|
14.10
|
|
|
(15,041
|
)
|
|
13.45
|
|
||
Outstanding at end of period
|
|
346,204
|
|
|
$
|
15.96
|
|
|
335,166
|
|
|
$
|
15.05
|
|
Exercisable at end of period
|
|
135,831
|
|
|
$
|
14.86
|
|
|
95,177
|
|
|
$
|
14.50
|
|
|
|
Six months ended June 30,
|
||||||||||||
|
|
2018
|
|
2017
|
||||||||||
|
|
Shares
|
|
Weighted Average Grant Date Fair Value
|
|
Shares
|
|
Weighted Average Grant Date Fair Value
|
||||||
Balance at beginning of period
|
|
112,688
|
|
|
$
|
17.28
|
|
|
93,366
|
|
|
$
|
14.75
|
|
Granted
|
|
60,260
|
|
|
24.35
|
|
|
52,966
|
|
|
20.10
|
|
||
Forfeited
|
|
(1,583
|
)
|
|
20.10
|
|
|
(7,836
|
)
|
|
16.15
|
|
||
Earned and issued
|
|
(28,187
|
)
|
|
17.24
|
|
|
(18,422
|
)
|
|
15.11
|
|
||
Balance at end of period
|
|
143,178
|
|
|
$
|
20.24
|
|
|
120,074
|
|
|
$
|
16.96
|
|
|
|
Estimated
Fair Value
|
|
Quoted Prices in
Active Markets for Identical Assets
(Level 1)
|
|
Significant Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of U.S. government agencies and corporations
|
|
$
|
9,089
|
|
|
$
|
—
|
|
|
$
|
9,089
|
|
|
$
|
—
|
|
Obligations of state and political subdivisions
|
|
34,411
|
|
|
—
|
|
|
15,243
|
|
|
19,168
|
|
||||
Corporate bonds
|
|
19,000
|
|
|
—
|
|
|
17,659
|
|
|
1,341
|
|
||||
Residential mortgage-backed securities
|
|
123,766
|
|
|
—
|
|
|
123,766
|
|
|
—
|
|
||||
Commercial mortgage-backed securities
|
|
55,321
|
|
|
—
|
|
|
55,321
|
|
|
—
|
|
||||
Equity securities
|
|
1,124
|
|
|
1,124
|
|
|
—
|
|
|
—
|
|
||||
Derivative financial instruments
|
|
943
|
|
|
—
|
|
|
943
|
|
|
—
|
|
||||
Total assets
|
|
$
|
243,654
|
|
|
$
|
1,124
|
|
|
$
|
222,021
|
|
|
$
|
20,509
|
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of U.S. government agencies and corporations
|
|
$
|
8,168
|
|
|
$
|
—
|
|
|
$
|
8,168
|
|
|
$
|
—
|
|
Obligations of state and political subdivisions
|
|
35,237
|
|
|
—
|
|
|
15,694
|
|
|
19,543
|
|
||||
Corporate bonds
|
|
16,210
|
|
|
—
|
|
|
14,885
|
|
|
1,325
|
|
||||
Residential mortgage-backed securities
|
|
109,478
|
|
|
—
|
|
|
109,478
|
|
|
—
|
|
||||
Commercial mortgage-backed securities
|
|
47,629
|
|
|
—
|
|
|
47,629
|
|
|
—
|
|
||||
Equity securities
|
|
842
|
|
|
842
|
|
|
—
|
|
|
—
|
|
||||
Derivative financial instruments
|
|
516
|
|
|
—
|
|
|
516
|
|
|
—
|
|
||||
Total assets
|
|
$
|
218,080
|
|
|
$
|
842
|
|
|
$
|
196,370
|
|
|
$
|
20,868
|
|
|
|
Obligations of State and
Political Subdivisions
|
|
Corporate Bonds
|
|
Total
|
||||||
Balance at December 31, 2017
|
|
$
|
19,543
|
|
|
$
|
1,325
|
|
|
$
|
20,868
|
|
Realized gains (losses) included in net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Unrealized gains (losses) included in other comprehensive income
|
|
(375
|
)
|
|
16
|
|
|
(359
|
)
|
|||
Purchases
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Sales
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Transfers into level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Transfers out of level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Balance at June 30, 2018
|
|
$
|
19,168
|
|
|
$
|
1,341
|
|
|
$
|
20,509
|
|
|
|
Obligations of State and
Political Subdivisions |
|
Corporate Bonds
|
|
Total
|
||||||
Balance at December 31, 2016
|
|
$
|
17,656
|
|
|
$
|
624
|
|
|
$
|
18,280
|
|
Realized gains (losses) included in net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Unrealized gains (losses) included in other comprehensive income
|
|
1,257
|
|
|
(4
|
)
|
|
1,253
|
|
|||
Purchases
|
|
—
|
|
|
700
|
|
|
700
|
|
|||
Sales
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Transfers into level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Transfers out of level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Balance at June 30, 2017
|
|
$
|
18,913
|
|
|
$
|
1,320
|
|
|
$
|
20,233
|
|
|
|
Estimated
Fair Value |
|
Valuation Technique
|
|
Unobservable Inputs
|
|
Range of Discounts
|
|
Weighted Average Discount
|
||
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
||
Impaired loans
|
|
$
|
151
|
|
|
Discounted cash flows, Underlying collateral value
|
|
Collateral discounts and estimated costs to sell
|
|
0% - 100%
|
|
23%
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
||
Impaired loans
|
|
$
|
380
|
|
|
Discounted cash flows, Underlying collateral value
|
|
Collateral discounts and estimated costs to sell
|
|
0% - 100%
|
|
32%
|
Other real estate owned
|
|
3,612
|
|
|
Underlying collateral value, Third party appraisals
|
|
Collateral discounts and discount rates
|
|
5%
|
|
5%
|
|
|
June 30, 2018
|
||||||||||||||||||
|
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
|
$
|
34,821
|
|
|
$
|
34,821
|
|
|
$
|
34,821
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Federal funds sold
|
|
10
|
|
|
10
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|||||
Investment securities
|
|
258,886
|
|
|
258,651
|
|
|
—
|
|
|
226,543
|
|
|
32,108
|
|
|||||
Equity securities
|
|
13,095
|
|
|
13,095
|
|
|
1,124
|
|
|
11,971
|
|
|
—
|
|
|||||
Loans, net of allowance
|
|
1,291,860
|
|
|
1,284,048
|
|
|
—
|
|
|
—
|
|
|
1,284,048
|
|
|||||
Derivative financial instruments
|
|
943
|
|
|
943
|
|
|
—
|
|
|
943
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Deposits, noninterest-bearing
|
|
$
|
222,570
|
|
|
$
|
222,570
|
|
|
$
|
—
|
|
|
$
|
222,570
|
|
|
$
|
—
|
|
Deposits, interest-bearing
|
|
1,008,360
|
|
|
963,211
|
|
|
—
|
|
|
—
|
|
|
963,211
|
|
|||||
FHLB short-term advances and repurchase agreements
|
|
230,752
|
|
|
230,752
|
|
|
—
|
|
|
230,752
|
|
|
—
|
|
|||||
FHLB long-term advances
|
|
23,075
|
|
|
22,640
|
|
|
—
|
|
|
—
|
|
|
22,640
|
|
|||||
Junior subordinated debt
|
|
5,819
|
|
|
6,985
|
|
|
—
|
|
|
—
|
|
|
6,985
|
|
|||||
Subordinated debt
|
|
18,600
|
|
|
18,746
|
|
|
—
|
|
|
18,746
|
|
|
—
|
|
|
|
December 31, 2017
|
||||||||||||||||||
|
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
|
$
|
30,421
|
|
|
$
|
30,421
|
|
|
$
|
30,421
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Investment securities
|
|
235,561
|
|
|
235,511
|
|
|
842
|
|
|
201,946
|
|
|
32,723
|
|
|||||
Equity securities
|
|
9,798
|
|
|
9,799
|
|
|
—
|
|
|
9,799
|
|
|
—
|
|
|||||
Loans, net of allowance
|
|
1,250,888
|
|
|
1,249,844
|
|
|
—
|
|
|
—
|
|
|
1,249,844
|
|
|||||
Derivative financial instruments
|
|
516
|
|
|
516
|
|
|
—
|
|
|
516
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits, noninterest-bearing
|
|
$
|
216,599
|
|
|
$
|
216,599
|
|
|
$
|
—
|
|
|
$
|
216,599
|
|
|
$
|
—
|
|
Deposits, interest-bearing
|
|
1,008,638
|
|
|
977,127
|
|
|
—
|
|
|
—
|
|
|
977,127
|
|
|||||
FHLB short-term advances and repurchase agreements
|
|
148,535
|
|
|
148,535
|
|
|
—
|
|
|
148,535
|
|
|
—
|
|
|||||
FHLB long-term advances
|
|
40,058
|
|
|
39,927
|
|
|
—
|
|
|
—
|
|
|
39,927
|
|
|||||
Junior subordinated debt
|
|
5,792
|
|
|
5,576
|
|
|
—
|
|
|
—
|
|
|
5,576
|
|
|||||
Subordinated debt
|
|
18,600
|
|
|
18,857
|
|
|
—
|
|
|
18,857
|
|
|
—
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Income tax expense
|
$
|
966
|
|
|
$
|
877
|
|
|
$
|
2,307
|
|
|
$
|
1,724
|
|
Effective tax rate
|
20.2
|
%
|
|
31.3
|
%
|
|
27.0
|
%
|
|
31.3
|
%
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Commitments to extend credit
|
|
|
|
|
||||
Loan commitments
|
|
$
|
228,362
|
|
|
$
|
174,278
|
|
Standby letters of credit
|
|
6,766
|
|
|
3,832
|
|
•
|
business and economic conditions generally and in the financial services industry in particular, whether nationally, regionally or in the markets in which we operate;
|
•
|
our ability to achieve organic loan and deposit growth, and the composition of that growth;
|
•
|
our ability to integrate and achieve the anticipated cost savings from our acquisitions;
|
•
|
changes (or the lack of changes) in interest rates, yield curves and interest rate spread relationships that affect our loan and deposit pricing;
|
•
|
the extent of continuing client demand for the high level of personalized service that is a key element of our banking approach as well as our ability to execute our strategy generally;
|
•
|
our dependence on our management team, and our ability to attract and retain qualified personnel;
|
•
|
changes in the quality or composition of our loan or investment portfolios, including adverse developments in borrower industries or in the repayment ability of individual borrowers;
|
•
|
inaccuracy of the assumptions and estimates we make in establishing reserves for probable loan losses and other estimates;
|
•
|
the concentration of our business within our geographic areas of operation in Louisiana; and
|
•
|
concentration of credit exposure.
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||
|
|
Amount
|
|
Percentage of
Total Loans |
|
Amount
|
|
Percentage of
Total Loans |
||||||
Construction and development
|
|
$
|
165,395
|
|
|
12.7
|
%
|
|
$
|
157,667
|
|
|
12.5
|
%
|
1-4 Family
|
|
280,335
|
|
|
21.6
|
|
|
276,922
|
|
|
22.0
|
|
||
Multifamily
|
|
48,838
|
|
|
3.8
|
|
|
51,283
|
|
|
4.1
|
|
||
Farmland
|
|
20,144
|
|
|
1.5
|
|
|
23,838
|
|
|
1.9
|
|
||
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Owner-occupied
|
|
287,320
|
|
|
22.1
|
|
|
272,433
|
|
|
21.6
|
|
||
Nonowner-occupied
|
|
292,946
|
|
|
22.5
|
|
|
264,931
|
|
|
21.0
|
|
||
Total mortgage loans on real estate
|
|
1,094,978
|
|
|
84.2
|
|
|
1,047,074
|
|
|
83.1
|
|
||
Commercial and industrial
|
|
145,554
|
|
|
11.2
|
|
|
135,392
|
|
|
10.8
|
|
||
Consumer
|
|
59,779
|
|
|
4.6
|
|
|
76,313
|
|
|
6.1
|
|
||
Total loans
|
|
$
|
1,300,311
|
|
|
100.0
|
%
|
|
$
|
1,258,779
|
|
|
100.0
|
%
|
|
|
One Year or Less
|
|
After One Year Through Five Years
|
|
After Five Years Through Ten Years
|
|
After Ten Years Through Fifteen Years
|
|
After Fifteen Years
|
|
Total
|
||||||||||||
Construction and development
|
|
$
|
138,029
|
|
|
$
|
12,950
|
|
|
$
|
11,912
|
|
|
$
|
2,153
|
|
|
$
|
351
|
|
|
$
|
165,395
|
|
1-4 Family
|
|
48,482
|
|
|
100,108
|
|
|
38,865
|
|
|
25,939
|
|
|
66,941
|
|
|
280,335
|
|
||||||
Multifamily
|
|
5,923
|
|
|
24,436
|
|
|
16,858
|
|
|
112
|
|
|
1,509
|
|
|
48,838
|
|
||||||
Farmland
|
|
8,051
|
|
|
8,779
|
|
|
1,551
|
|
|
1,763
|
|
|
—
|
|
|
20,144
|
|
||||||
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Owner-occupied
|
|
34,524
|
|
|
115,822
|
|
|
88,412
|
|
|
31,519
|
|
|
17,043
|
|
|
287,320
|
|
||||||
Nonowner-occupied
|
|
32,870
|
|
|
129,810
|
|
|
114,143
|
|
|
16,123
|
|
|
—
|
|
|
292,946
|
|
||||||
Total mortgage loans on real estate
|
|
267,879
|
|
|
391,905
|
|
|
271,741
|
|
|
77,609
|
|
|
85,844
|
|
|
1,094,978
|
|
||||||
Commercial and industrial
|
|
69,967
|
|
|
44,435
|
|
|
16,415
|
|
|
—
|
|
|
14,737
|
|
|
145,554
|
|
||||||
Consumer
|
|
5,096
|
|
|
49,590
|
|
|
4,564
|
|
|
102
|
|
|
427
|
|
|
59,779
|
|
||||||
Total loans
|
|
$
|
342,942
|
|
|
$
|
485,930
|
|
|
$
|
292,720
|
|
|
$
|
77,711
|
|
|
$
|
101,008
|
|
|
$
|
1,300,311
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||
|
|
Balance
|
|
Percentage of Portfolio
|
|
Balance
|
|
Percentage of Portfolio
|
||||||
Obligations of U.S. government agencies and corporations
|
|
$
|
9,089
|
|
|
3.5
|
%
|
|
$
|
8,168
|
|
|
3.5
|
%
|
Obligations of state and political subdivisions
|
|
46,053
|
|
|
17.8
|
|
|
47,098
|
|
|
20.0
|
|
||
Corporate bonds
|
|
19,000
|
|
|
7.3
|
|
|
16,210
|
|
|
6.9
|
|
||
Residential mortgage-backed securities
|
|
129,423
|
|
|
50.0
|
|
|
115,614
|
|
|
49.0
|
|
||
Commercial mortgage-backed securities
|
|
55,321
|
|
|
21.4
|
|
|
47,629
|
|
|
20.2
|
|
||
Equity securities
|
|
—
|
|
|
—
|
|
|
842
|
|
|
0.4
|
|
||
Total
|
|
$
|
258,886
|
|
|
100.0
|
%
|
|
$
|
235,561
|
|
|
100.0
|
%
|
|
|
One Year or Less
|
|
After One Year Through Five Years
|
|
After Five Years Through Ten Years
|
|
After Ten Years
|
||||||||||||||||||||
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
||||||||||||
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Obligations of state and political subdivisions
|
|
$
|
720
|
|
|
6.02
|
%
|
|
$
|
3,245
|
|
|
6.02
|
%
|
|
$
|
1,875
|
|
|
6.02
|
%
|
|
$
|
5,802
|
|
|
3.73
|
%
|
Residential mortgage-backed securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,657
|
|
|
2.86
|
|
||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of U.S. government agencies and corporations
|
|
—
|
|
|
—
|
|
|
2,534
|
|
|
1.97
|
|
|
6,241
|
|
|
2.58
|
|
|
510
|
|
|
2.91
|
|
||||
Obligations of state and political subdivisions
|
|
3,151
|
|
|
1.58
|
|
|
6,219
|
|
|
2.06
|
|
|
6,513
|
|
|
2.71
|
|
|
19,326
|
|
|
3.70
|
|
||||
Corporate bonds
|
|
706
|
|
|
2.04
|
|
|
3,774
|
|
|
3.59
|
|
|
14,914
|
|
|
3.91
|
|
|
—
|
|
|
—
|
|
||||
Residential mortgage-backed securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,665
|
|
|
2.45
|
|
|
123,156
|
|
|
2.35
|
|
||||
Commercial mortgage-backed securities
|
|
—
|
|
|
—
|
|
|
1,439
|
|
|
1.93
|
|
|
3,185
|
|
|
2.82
|
|
|
51,984
|
|
|
2.60
|
|
||||
|
|
$
|
4,577
|
|
|
|
|
|
$
|
17,211
|
|
|
|
|
|
$
|
36,393
|
|
|
|
|
|
$
|
206,435
|
|
|
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||
|
|
Amount
|
|
Percentage of Total Deposits
|
|
Amount
|
|
Percentage of Total Deposits
|
||||||
Noninterest-bearing demand deposits
|
|
$
|
222,570
|
|
|
18.1
|
%
|
|
$
|
216,599
|
|
|
17.7
|
%
|
NOW accounts
|
|
231,987
|
|
|
18.8
|
|
|
208,683
|
|
|
17.0
|
|
||
Money market deposit accounts
|
|
151,510
|
|
|
12.3
|
|
|
146,140
|
|
|
11.9
|
|
||
Savings accounts
|
|
117,649
|
|
|
9.6
|
|
|
117,372
|
|
|
9.6
|
|
||
Time deposits
|
|
507,214
|
|
|
41.2
|
|
|
536,443
|
|
|
43.8
|
|
||
Total deposits
|
|
$
|
1,230,930
|
|
|
100.0
|
%
|
|
$
|
1,225,237
|
|
|
100.0
|
%
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||
|
|
Certificates of Deposit
|
|
Other Time Deposits
|
|
Certificates of Deposit
|
|
Other Time Deposits
|
||||||||
Time remaining until maturity:
|
|
|
|
|
|
|
|
|
||||||||
Three months or less
|
|
$
|
62,042
|
|
|
$
|
535
|
|
|
$
|
79,662
|
|
|
$
|
2,182
|
|
Over three months through six months
|
|
32,799
|
|
|
1,188
|
|
|
53,702
|
|
|
1,709
|
|
||||
Over six months through twelve months
|
|
91,640
|
|
|
1,857
|
|
|
61,371
|
|
|
1,812
|
|
||||
Over one year through three years
|
|
55,664
|
|
|
4,828
|
|
|
78,270
|
|
|
1,890
|
|
||||
Over three years
|
|
8,859
|
|
|
623
|
|
|
2,722
|
|
|
487
|
|
||||
|
|
$
|
251,004
|
|
|
$
|
9,031
|
|
|
$
|
275,727
|
|
|
$
|
8,080
|
|
|
|
Average Balances
|
|
Cost of Funds
|
||||||||||
|
|
June 30, 2018
|
|
June 30, 2017
|
|
June 30, 2018
|
|
June 30, 2017
|
||||||
Federal funds purchased and other short-term borrowings
|
|
$
|
121,444
|
|
|
$
|
92,432
|
|
|
1.67
|
%
|
|
1.28
|
%
|
Securities sold under agreements to repurchase
|
|
20,668
|
|
|
37,000
|
|
|
0.79
|
|
|
0.24
|
|
||
Total short-term borrowings
|
|
$
|
142,112
|
|
|
$
|
129,432
|
|
|
1.54
|
%
|
|
0.99
|
%
|
|
|
Three months ended June 30,
|
||||||||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||||||||
|
|
Average
Balance |
|
Interest
Income/ Expense (1) |
|
Yield/ Rate
(1)
|
|
Average
Balance |
|
Interest
Income/ Expense (1) |
|
Yield/ Rate
(1)
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans
|
|
$
|
1,269,894
|
|
|
$
|
16,223
|
|
|
5.12
|
%
|
|
$
|
914,265
|
|
|
$
|
10,559
|
|
|
4.63
|
%
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Taxable
|
|
224,263
|
|
|
1,441
|
|
|
2.58
|
|
|
165,689
|
|
|
1,013
|
|
|
2.45
|
|
||||
Tax-exempt
|
|
33,936
|
|
|
203
|
|
|
2.40
|
|
|
29,375
|
|
|
186
|
|
|
2.54
|
|
||||
Interest-earning balances with banks
|
|
25,720
|
|
|
142
|
|
|
2.20
|
|
|
28,423
|
|
|
86
|
|
|
1.21
|
|
||||
Total interest-earning assets
|
|
1,553,813
|
|
|
18,009
|
|
|
4.65
|
|
|
1,137,752
|
|
|
11,844
|
|
|
4.18
|
|
||||
Cash and due from banks
|
|
16,690
|
|
|
|
|
|
|
|
|
8,213
|
|
|
|
|
|
|
|
||||
Intangible assets
|
|
20,064
|
|
|
|
|
|
|
|
|
3,217
|
|
|
|
|
|
|
|
||||
Other assets
|
|
73,312
|
|
|
|
|
|
|
|
|
56,919
|
|
|
|
|
|
|
|
||||
Allowance for loan losses
|
|
(8,170
|
)
|
|
|
|
|
|
|
|
(7,223
|
)
|
|
|
|
|
|
|
||||
Total assets
|
|
$
|
1,655,709
|
|
|
|
|
|
|
|
|
$
|
1,198,878
|
|
|
|
|
|
|
|
||
Liabilities and stockholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing demand
|
|
$
|
372,824
|
|
|
$
|
641
|
|
|
0.69
|
%
|
|
$
|
291,902
|
|
|
$
|
524
|
|
|
0.72
|
%
|
Savings deposits
|
|
121,174
|
|
|
138
|
|
|
0.46
|
|
|
51,474
|
|
|
83
|
|
|
0.65
|
|
||||
Time deposits
|
|
507,039
|
|
|
1,647
|
|
|
1.30
|
|
|
402,271
|
|
|
1,220
|
|
|
1.22
|
|
||||
Total interest-bearing deposits
|
|
1,001,037
|
|
|
2,426
|
|
|
0.97
|
|
|
745,647
|
|
|
1,827
|
|
|
0.98
|
|
||||
Short-term borrowings
|
|
140,595
|
|
|
579
|
|
|
1.65
|
|
|
137,848
|
|
|
350
|
|
|
1.02
|
|
||||
Long-term debt
|
|
106,063
|
|
|
684
|
|
|
2.59
|
|
|
39,285
|
|
|
365
|
|
|
3.73
|
|
||||
Total interest-bearing liabilities
|
|
1,247,695
|
|
|
3,689
|
|
|
1.19
|
|
|
922,780
|
|
|
2,542
|
|
|
1.10
|
|
||||
Noninterest-bearing deposits
|
|
222,404
|
|
|
|
|
|
|
|
|
116,714
|
|
|
|
|
|
|
|
||||
Other liabilities
|
|
9,809
|
|
|
|
|
|
|
|
|
9,671
|
|
|
|
|
|
|
|
||||
Stockholders’ equity
|
|
175,801
|
|
|
|
|
|
|
|
|
149,713
|
|
|
|
|
|
|
|
||||
Total liabilities and stockholders’ equity
|
|
$
|
1,655,709
|
|
|
|
|
|
|
|
$
|
1,198,878
|
|
|
|
|
|
|
||||
Net interest income/net interest margin
|
|
|
|
$
|
14,320
|
|
|
3.70
|
%
|
|
|
|
|
$
|
9,302
|
|
|
3.28
|
%
|
(1)
|
Interest income and net interest margin are expressed as a percentage of average interest-earning assets outstanding for the indicated periods. Interest expense is expressed as a percentage of average interest-bearing liabilities for the indicated periods.
|
|
|
Three months ended June 30, 2018 vs.
three months ended June 30, 2017 |
||||||||||
|
|
Volume
|
|
Rate
|
|
Net
(1)
|
||||||
Interest income:
|
|
|
|
|
|
|
||||||
Loans
|
|
$
|
4,107
|
|
|
$
|
1,557
|
|
|
$
|
5,664
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
|||
Taxable
|
|
358
|
|
|
70
|
|
|
428
|
|
|||
Tax-exempt
|
|
29
|
|
|
(12
|
)
|
|
17
|
|
|||
Interest-earning balances with banks
|
|
(8
|
)
|
|
64
|
|
|
56
|
|
|||
Total interest-earning assets
|
|
4,486
|
|
|
1,679
|
|
|
6,165
|
|
|||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|||
Interest-bearing demand deposits
|
|
145
|
|
|
(28
|
)
|
|
117
|
|
|||
Savings deposits
|
|
112
|
|
|
(57
|
)
|
|
55
|
|
|||
Time deposits
|
|
318
|
|
|
109
|
|
|
427
|
|
|||
Short-term borrowings
|
|
7
|
|
|
222
|
|
|
229
|
|
|||
Long-term debt
|
|
621
|
|
|
(302
|
)
|
|
319
|
|
|||
Total interest-bearing liabilities
|
|
1,203
|
|
|
(56
|
)
|
|
1,147
|
|
|||
Change in net interest income
|
|
$
|
3,283
|
|
|
$
|
1,735
|
|
|
$
|
5,018
|
|
(1)
|
Changes in interest due to both volume and rate have been allocated on a pro-rata basis using the absolute ratio value of amounts calculated.
|
|
|
Six months ended June 30,
|
||||||||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||||||||
|
|
Average
Balance |
|
Interest
Income/ Expense (1) |
|
Yield/ Rate
(1)
|
|
Average
Balance |
|
Interest
Income/ Expense (1) |
|
Yield/ Rate
(1)
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans
|
|
$
|
1,265,495
|
|
|
$
|
31,849
|
|
|
5.08
|
%
|
|
$
|
903,466
|
|
|
$
|
20,563
|
|
|
4.59
|
%
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Taxable
|
|
215,541
|
|
|
2,694
|
|
|
2.52
|
|
|
157,957
|
|
|
1,852
|
|
|
2.36
|
|
||||
Tax-exempt
|
|
34,310
|
|
|
409
|
|
|
2.41
|
|
|
29,955
|
|
|
376
|
|
|
2.53
|
|
||||
Interest-earning balances with banks
|
|
25,118
|
|
|
235
|
|
|
1.88
|
|
|
26,517
|
|
|
146
|
|
|
1.12
|
|
||||
Total interest-earning assets
|
|
1,540,464
|
|
|
35,187
|
|
|
4.61
|
|
|
1,117,895
|
|
|
22,937
|
|
|
4.14
|
|
||||
Cash and due from banks
|
|
16,837
|
|
|
|
|
|
|
|
|
8,379
|
|
|
|
|
|
|
|
||||
Intangible assets
|
|
19,973
|
|
|
|
|
|
|
|
|
3,222
|
|
|
|
|
|
|
|
||||
Other assets
|
|
73,374
|
|
|
|
|
|
|
|
|
56,058
|
|
|
|
|
|
|
|
||||
Allowance for loan losses
|
|
(8,082
|
)
|
|
|
|
|
|
|
|
(7,174
|
)
|
|
|
|
|
|
|
||||
Total assets
|
|
$
|
1,642,566
|
|
|
|
|
|
|
|
|
$
|
1,178,380
|
|
|
|
|
|
|
|
||
Liabilities and stockholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing demand
|
|
$
|
366,896
|
|
|
$
|
1,220
|
|
|
0.67
|
%
|
|
$
|
291,878
|
|
|
$
|
1,011
|
|
|
0.70
|
%
|
Savings deposits
|
|
121,018
|
|
|
276
|
|
|
0.46
|
|
|
52,350
|
|
|
169
|
|
|
0.65
|
|
||||
Time deposits
|
|
513,927
|
|
|
3,183
|
|
|
1.25
|
|
|
417,635
|
|
|
2,500
|
|
|
1.21
|
|
||||
Total interest-bearing deposits
|
|
1,001,841
|
|
|
4,679
|
|
|
0.94
|
|
|
761,863
|
|
|
3,680
|
|
|
0.97
|
|
||||
Short-term borrowings
|
|
142,112
|
|
|
1,086
|
|
|
1.54
|
|
|
129,432
|
|
|
633
|
|
|
0.99
|
|
||||
Long-term debt
|
|
94,417
|
|
|
1,244
|
|
|
2.66
|
|
|
30,280
|
|
|
462
|
|
|
3.08
|
|
||||
Total interest-bearing liabilities
|
|
1,238,370
|
|
|
7,009
|
|
|
1.14
|
|
|
921,575
|
|
|
4,775
|
|
|
1.04
|
|
||||
Noninterest-bearing deposits
|
|
219,631
|
|
|
|
|
|
|
|
|
113,579
|
|
|
|
|
|
|
|
||||
Other liabilities
|
|
9,924
|
|
|
|
|
|
|
|
|
9,532
|
|
|
|
|
|
|
|
||||
Stockholders’ equity
|
|
174,641
|
|
|
|
|
|
|
|
|
133,694
|
|
|
|
|
|
|
|
||||
Total liabilities and stockholders’ equity
|
|
$
|
1,642,566
|
|
|
|
|
|
|
|
$
|
1,178,380
|
|
|
|
|
|
|
||||
Net interest income/net interest margin
|
|
|
|
$
|
28,178
|
|
|
3.69
|
%
|
|
|
|
|
$
|
18,162
|
|
|
3.28
|
%
|
(1)
|
Interest income and net interest margin are expressed as a percentage of average interest-earning assets outstanding for the indicated periods. Interest expense is expressed as a percentage of average interest-bearing liabilities for the indicated periods.
|
|
|
Six months ended June 30, 2018 vs.
six months ended June 30, 2017 |
||||||||||
|
|
Volume
|
|
Rate
|
|
Net
(1)
|
||||||
Interest income:
|
|
|
|
|
|
|
||||||
Loans
|
|
$
|
8,240
|
|
|
$
|
3,046
|
|
|
$
|
11,286
|
|
Securities:
|
|
|
|
|
|
|
|
|||||
Taxable
|
|
675
|
|
|
167
|
|
|
842
|
|
|||
Tax-exempt
|
|
55
|
|
|
(22
|
)
|
|
33
|
|
|||
Interest-earning balances with banks
|
|
(8
|
)
|
|
97
|
|
|
89
|
|
|||
Total interest-earning assets
|
|
8,962
|
|
|
3,288
|
|
|
12,250
|
|
|||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|||
Interest-bearing demand deposits
|
|
260
|
|
|
(51
|
)
|
|
209
|
|
|||
Savings deposits
|
|
222
|
|
|
(115
|
)
|
|
107
|
|
|||
Time deposits
|
|
576
|
|
|
107
|
|
|
683
|
|
|||
Short-term borrowings
|
|
62
|
|
|
391
|
|
|
453
|
|
|||
Long-term debt
|
|
978
|
|
|
(196
|
)
|
|
782
|
|
|||
Total interest-bearing liabilities
|
|
2,098
|
|
|
136
|
|
|
2,234
|
|
|||
Change in net interest income
|
|
$
|
6,864
|
|
|
$
|
3,152
|
|
|
$
|
10,016
|
|
(1)
|
Changes in interest due to both volume and rate have been allocated on a pro-rata basis using the absolute ratio value of amounts calculated.
|
•
|
Pass (grades 1-6)
– Loans not falling into one of the categories below are considered pass. These loans have high credit characteristics and financial strength. The borrowers at least generate profits and cash flow that are in line with peer and industry standards and have debt service coverage ratios above loan covenants and our policy guidelines. For some of these loans, a guaranty from a financially capable party mitigates characteristics of the borrower that might otherwise result in a lower grade.
|
•
|
Special Mention (grade 7)
– Loans classified as special mention possess some credit deficiencies that need to be corrected to avoid a greater risk of default in the future. For example, financial ratios relating to the borrower may have deteriorated. Often, a special mention categorization is temporary while certain factors are analyzed or matters addressed before the loan is re-categorized as either pass or substandard.
|
•
|
Substandard (grade 8)
– Loans rated as substandard are inadequately protected by the current net worth and paying capacity of the borrower or the liquidation value of any collateral. If deficiencies are not addressed, it is likely that this category of loan will result in the Bank incurring a loss. Where a borrower has been unable to adjust to industry or general economic conditions, the borrower’s loan is often categorized as substandard.
|
•
|
Doubtful (grade 9)
– Doubtful loans are substandard loans with one or more additional negative factors that makes full collection of amounts outstanding, either through repayment or liquidation of collateral, highly questionable and improbable.
|
•
|
Loss (grade 10)
– Loans classified as loss have deteriorated to such a point that it is not practicable to defer writing off the loan. For these loans, all efforts to remediate the loan’s negative characteristics have failed and the value of the collateral, if any, has severely deteriorated relative to the amount outstanding. Although some value may be recovered on such a loan, it is not significant in relation to the amount borrowed.
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Construction and development
|
|
$
|
1,018
|
|
|
$
|
945
|
|
1-4 Family
|
|
1,339
|
|
|
1,287
|
|
||
Multifamily
|
|
319
|
|
|
332
|
|
||
Farmland
|
|
66
|
|
|
60
|
|
||
Commercial real estate
|
|
3,817
|
|
|
3,599
|
|
||
Total mortgage loans on real estate
|
|
6,559
|
|
|
6,223
|
|
||
Commercial and industrial
|
|
1,048
|
|
|
693
|
|
||
Consumer
|
|
844
|
|
|
975
|
|
||
Total
|
|
$
|
8,451
|
|
|
$
|
7,891
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Allowance at beginning of period
|
|
$
|
8,130
|
|
|
$
|
7,243
|
|
|
$
|
7,891
|
|
|
$
|
7,051
|
|
Provision for loan losses
|
|
567
|
|
|
375
|
|
|
1,192
|
|
|
725
|
|
||||
Charge-offs:
|
|
|
|
|
|
|
|
|
||||||||
Mortgage loans on real estate:
|
|
|
|
|
|
|
|
|
||||||||
Construction and development
|
|
(16
|
)
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
||||
1-4 Family
|
|
(28
|
)
|
|
—
|
|
|
(35
|
)
|
|
—
|
|
||||
Commercial and industrial
|
|
(141
|
)
|
|
(193
|
)
|
|
(451
|
)
|
|
(193
|
)
|
||||
Consumer
|
|
(106
|
)
|
|
(121
|
)
|
|
(235
|
)
|
|
(287
|
)
|
||||
Total charge-offs
|
|
(291
|
)
|
|
(314
|
)
|
|
(737
|
)
|
|
(480
|
)
|
||||
Recoveries
|
|
|
|
|
|
|
|
|
||||||||
Mortgage loans on real estate:
|
|
|
|
|
|
|
|
|
||||||||
Construction and development
|
|
2
|
|
|
11
|
|
|
8
|
|
|
14
|
|
||||
1-4 Family
|
|
3
|
|
|
1
|
|
|
6
|
|
|
2
|
|
||||
Commercial and industrial
|
|
8
|
|
|
—
|
|
|
41
|
|
|
—
|
|
||||
Consumer
|
|
32
|
|
|
4
|
|
|
50
|
|
|
8
|
|
||||
Total recoveries
|
|
45
|
|
|
16
|
|
|
105
|
|
|
24
|
|
||||
Net charge-offs
|
|
(246
|
)
|
|
(298
|
)
|
|
(632
|
)
|
|
(456
|
)
|
||||
Balance at end of period
|
|
$
|
8,451
|
|
|
$
|
7,320
|
|
|
$
|
8,451
|
|
|
$
|
7,320
|
|
Net charge-offs to:
|
|
|
|
|
|
|
|
|
||||||||
Loans - average
|
|
0.02
|
%
|
|
0.03
|
%
|
|
0.05
|
%
|
|
0.05
|
%
|
||||
Allowance for loan losses
|
|
2.91
|
%
|
|
4.07
|
%
|
|
7.48
|
%
|
|
6.23
|
%
|
||||
Allowance for loan losses to:
|
|
|
|
|
|
|
|
|
||||||||
Total loans
|
|
0.65
|
%
|
|
0.78
|
%
|
|
0.65
|
%
|
|
0.78
|
%
|
||||
Nonperforming loans
|
|
199.04
|
%
|
|
627.63
|
%
|
|
199.04
|
%
|
|
627.63
|
%
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Nonaccrual loans
|
|
$
|
4,141
|
|
|
$
|
3,547
|
|
Accruing loans past due 90 days or more
|
|
115
|
|
|
134
|
|
||
Total nonperforming loans
|
|
4,256
|
|
|
3,681
|
|
||
TDRs
|
|
1,670
|
|
|
1,621
|
|
||
Total nonperforming and TDRs
|
|
$
|
5,926
|
|
|
$
|
5,302
|
|
Interest income recognized on nonperforming and TDRs
|
|
$
|
64
|
|
|
$
|
185
|
|
Interest income foregone on nonperforming and TDRs
|
|
$
|
177
|
|
|
$
|
104
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Construction and development
|
|
$
|
183
|
|
|
$
|
183
|
|
1-4 Family
|
|
—
|
|
|
42
|
|
||
Farmland
|
|
205
|
|
|
—
|
|
||
Commercial real estate
|
|
3,837
|
|
|
3,612
|
|
||
Total other real estate owned
|
|
$
|
4,225
|
|
|
$
|
3,837
|
|
|
|
Six months ended June 30,
|
||||||
|
|
2018
|
|
2017
|
||||
Balance, beginning of period
|
|
$
|
3,837
|
|
|
$
|
4,065
|
|
Additions
|
|
225
|
|
|
—
|
|
||
Transfers from acquired loans
|
|
205
|
|
|
—
|
|
||
Sales of other real estate owned
|
|
(42
|
)
|
|
(52
|
)
|
||
Write-downs
|
|
—
|
|
|
(183
|
)
|
||
Balance, end of period
|
|
$
|
4,225
|
|
|
$
|
3,830
|
|
As of June 30, 2018
|
||
Changes in Interest Rates (in basis points)
|
|
Estimated Increase/Decrease in Net Interest Income
(1)
|
+300
|
|
(3.5)%
|
+200
|
|
(2.2)%
|
+100
|
|
(1.0)%
|
-100
|
|
3.8%
|
-200
|
|
2.6%
|
-300
|
|
0.7%
|
(1)
|
The percentage change in this column represents the projected net interest income for 12 months on a flat balance sheet in a stable interest rate environment versus the projected net interest income in the various rate scenarios.
|
|
|
Percentage of Total
|
|
Cost of Funds
|
||||||||||||||||||||
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Noninterest-bearing demand deposits
|
|
15
|
%
|
|
11
|
%
|
|
15
|
%
|
|
11
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Interest-bearing demand deposits
|
|
25
|
|
|
28
|
|
|
25
|
|
|
28
|
|
|
0.69
|
|
|
0.72
|
|
|
0.67
|
|
|
0.70
|
|
Savings accounts
|
|
8
|
|
|
5
|
|
|
8
|
|
|
5
|
|
|
0.46
|
|
|
0.65
|
|
|
0.46
|
|
|
0.65
|
|
Time deposits
|
|
35
|
|
|
39
|
|
|
35
|
|
|
40
|
|
|
1.30
|
|
|
1.22
|
|
|
1.25
|
|
|
1.21
|
|
Short-term borrowings
|
|
10
|
|
|
13
|
|
|
10
|
|
|
13
|
|
|
1.65
|
|
|
1.02
|
|
|
1.54
|
|
|
0.99
|
|
Long-term borrowed funds
|
|
7
|
|
|
4
|
|
|
7
|
|
|
3
|
|
|
2.59
|
|
|
3.73
|
|
|
2.66
|
|
|
3.08
|
|
Total deposits and borrowed funds
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
1.01
|
%
|
|
0.98
|
%
|
|
0.97
|
%
|
|
0.93
|
%
|
Capital Tiers
|
|
Tier 1 Leverage Ratio
|
|
Common Equity Tier 1 Capital Ratio
|
|
Tier 1 Capital Ratio
|
|
Total Capital Ratio
|
Well capitalized
|
|
5% or above
|
|
6.5% or above
|
|
8% or above
|
|
10% or above
|
Adequately capitalized
|
|
4% or above
|
|
4.5% or above
|
|
6% or above
|
|
8% or above
|
Undercapitalized
|
|
Less than 4%
|
|
Less than 4.5%
|
|
Less than 6%
|
|
Less than 8%
|
Significantly undercapitalized
|
|
Less than 3%
|
|
Less than 3%
|
|
Less than 4%
|
|
Less than 6%
|
Critically undercapitalized
|
|
|
|
|
|
2% or less
|
|
|
|
|
Actual
|
|
Minimum Capital Requirement to be Well Capitalized
|
||||||||||
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
||||||
June 30, 2018
|
|
|
|
|
|
|
|
|
||||||
Investar Holding Corporation:
|
|
|
|
|
|
|
|
|
||||||
Tier 1 leverage capital
|
|
$
|
167,553
|
|
|
10.22
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Common equity tier 1 capital
|
|
161,053
|
|
|
11.64
|
|
|
—
|
|
|
—
|
|
||
Tier 1 capital
|
|
167,553
|
|
|
12.11
|
|
|
—
|
|
|
—
|
|
||
Total capital
|
|
194,249
|
|
|
14.04
|
|
|
—
|
|
|
—
|
|
||
Investar Bank:
|
|
|
|
|
|
|
|
|
||||||
Tier 1 leverage capital
|
|
182,487
|
|
|
11.14
|
|
|
81,896
|
|
|
5.00
|
|
||
Common equity tier 1 capital
|
|
182,487
|
|
|
13.21
|
|
|
89,800
|
|
|
6.50
|
|
||
Tier 1 capital
|
|
182,487
|
|
|
13.21
|
|
|
110,523
|
|
|
8.00
|
|
||
Total capital
|
|
190,992
|
|
|
13.82
|
|
|
138,154
|
|
|
10.00
|
|
||
|
|
|
|
|
|
|
|
|
||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
||||||
Investar Holding Corporation:
|
|
|
|
|
|
|
|
|
||||||
Tier 1 leverage capital
|
|
$
|
161,438
|
|
|
10.66
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Common equity tier 1 capital
|
|
154,938
|
|
|
11.75
|
|
|
—
|
|
|
—
|
|
||
Tier 1 capital
|
|
161,438
|
|
|
12.24
|
|
|
—
|
|
|
—
|
|
||
Total capital
|
|
187,530
|
|
|
14.22
|
|
|
—
|
|
|
—
|
|
||
Investar Bank:
|
|
|
|
|
|
|
|
|
||||||
Tier 1 leverage capital
|
|
175,943
|
|
|
11.63
|
|
|
75,668
|
|
|
5.00
|
|
||
Common equity tier 1 capital
|
|
175,943
|
|
|
13.35
|
|
|
85,647
|
|
|
6.50
|
|
||
Tier 1 capital
|
|
175,943
|
|
|
13.35
|
|
|
105,411
|
|
|
8.00
|
|
||
Total capital
|
|
183,867
|
|
|
13.95
|
|
|
131,764
|
|
|
10.00
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Commitments to extend credit:
|
|
|
|
|
||||
Loan commitments
|
|
$
|
228,362
|
|
|
$
|
174,278
|
|
Standby letters of credit
|
|
6,766
|
|
|
3,832
|
|
|
|
Payments Due In:
|
||||||||||||||||||
|
|
Less than One Year
|
|
One to Three Years
|
|
Three to Five Years
|
|
Over Five Years
|
|
Total
|
||||||||||
Deposits without a stated maturity
(1)
|
|
$
|
723,716
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
723,716
|
|
Time Deposits
(1) (2)
|
|
358,804
|
|
|
133,431
|
|
|
15,369
|
|
|
—
|
|
|
507,604
|
|
|||||
Securities sold under agreements to repurchase
(1)
|
|
16,752
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,752
|
|
|||||
Federal Home Loan Bank advances
(2)
|
|
214,000
|
|
|
23,100
|
|
|
—
|
|
|
—
|
|
|
237,100
|
|
|||||
Subordinated debt
(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,600
|
|
|
18,600
|
|
|||||
Junior subordinated debt
(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,702
|
|
|
6,702
|
|
|||||
Total contractual obligations
|
|
$
|
1,313,272
|
|
|
$
|
156,531
|
|
|
$
|
15,369
|
|
|
$
|
25,302
|
|
|
$
|
1,510,474
|
|
(1)
|
Excludes interest.
|
(2)
|
Excludes unamortized premiums and discounts.
|
Period
|
|
(a) Total Number of
Shares (or Units)
Purchased
(1)
|
|
(b) Average Price
Paid per Share
(or Unit)
|
|
(c ) Total Number
of Shares (or Units)
Purchased as Part
of Publicly
Announced Plans
or Programs
(2)
|
|
(d) Maximum Number
(or Approximate Dollar
Value) of Shares
(or Units) That May Be
Purchased Under the
Plans or Programs
(2)
|
|||||
April 1, 2018 to April 30, 2018
|
|
1,473
|
|
|
$
|
25.85
|
|
|
—
|
|
|
190,791
|
|
May 1, 2018 to May 31, 2018
|
|
32
|
|
|
25.65
|
|
|
—
|
|
|
190,791
|
|
|
June 1, 2018 to June 30, 2018
|
|
59
|
|
|
28.08
|
|
|
—
|
|
|
190,791
|
|
|
|
|
1,564
|
|
|
$
|
25.93
|
|
|
—
|
|
|
190,791
|
|
(1)
|
Includes 1,564 shares surrendered to cover the payroll taxes due upon the vesting of restricted stock.
|
(2)
|
On February 19, 2015, the Company announced that its board of directors had authorized the repurchase of up to 250,000 shares of the Company’s common stock in open market transactions from time to time or through privately negotiated transactions in accordance with federal securities laws. In addition, on October 19, 2016, the Company announced that its board of directors authorized the repurchase of an additional 250,000 shares of the Company’s common stock under its stock repurchase plan.
|
•
|
As a holding company with no material business activities, the Company’s ability to pay dividends is substantially dependent upon the ability of Investar Bank to transfer funds to the Company in the form of dividends, loans and advances. Investar Bank’s ability to pay dividends and make other distributions and payments is itself subject to various legal, regulatory and other restrictions.
|
•
|
As a holding company of a bank, the Company’s payment of dividends must comply with the policies and enforcement powers of the Federal Reserve. Under Federal Reserve policies, in general a bank holding company should pay dividends only when (1) its net income available to shareholders over the last four quarters (net of dividends paid) has been sufficient to fully fund the dividends, (2) the prospective rate of earnings retention appears to be consistent with the capital needs and overall current and prospective financial condition of the bank holding company and its subsidiaries, and (3) the bank holding company will continue to meet minimum regulatory capital adequacy ratios.
|
Exhibit No.
|
|
Description of Exhibit
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
101.INS
|
|
XBRL Instance Document
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
(1)
|
Filed as Annex A to the Registration Statement on Form S-4 of the Company filed with the SEC on October 10, 2017 and incorporated herein by reference.
|
(2)
|
Filed as exhibit 2.1 to the Current Report on Form 8-K filed with the SEC on March 8, 2017 and incorporated herein by reference.
|
(3)
|
Filed as exhibit 3.1 to the Registration Statement on Form S-1 of the Company filed with the SEC on May 16, 2014 and incorporated herein by reference.
|
(4)
|
Filed as exhibit 3.2 to the Registration Statement on Form S-4 of the Company filed with the SEC on October 10, 2017 and incorporated herein by reference.
|
(5)
|
Filed as exhibit 4.1 to the Registration Statement on Form S-1 of the Company filed with the SEC on May 16, 2014 and incorporated herein by reference.
|
(6)
|
Filed as exhibit 4.1 to the Current Report on Form 8-K filed with the SEC on March 24, 2017 and incorporated herein by reference.
|
(7)
|
Filed as exhibit 4.2 to the Current Report on Form 8-K filed with the SEC on March 24, 2017 and incorporated herein by reference.
|
(8)
|
Filed as Exhibit B to Annex A to the Registration Statement on Form S-4 of the Company filed with the SEC on October 10, 2017 and incorporated herein by reference.
|
(9)
|
Filed as Exhibit C to Annex A to the Registration Statement on Form S-4 of the Company filed with the SEC on October 10, 2017 and incorporated herein by reference.
|
|
|
INVESTAR HOLDING CORPORATION
|
|
|
|
Date: August 9, 2018
|
|
/s/ John J. D’Angelo
|
|
|
John J. D’Angelo
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
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Date: August 9, 2018
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/s/ Christopher L. Hufft
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Christopher L. Hufft
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Chief Financial Officer
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(Principal Financial Officer)
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a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
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c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: August 9, 2018
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/s/ John J. D’Angelo
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John J. D’Angelo
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President and Chief Executive Officer
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(Principal Executive Officer)
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a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
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c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: August 9, 2018
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/s/ Christopher L. Hufft
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Christopher L. Hufft
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Chief Financial Officer
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(Principal Financial Officer)
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the periods covered in the Report.
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Date: August 9, 2018
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/s/ John J. D’Angelo
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John J. D’Angelo
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President and Chief Executive Officer
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(Principal Executive Officer)
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the periods covered in the Report.
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Date: August 9, 2018
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/s/ Christopher L. Hufft
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Christopher L. Hufft
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Chief Financial Officer
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(Principal Financial Officer)
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