☒
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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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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common stock, $1.00 par value per share
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ISTR
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The Nasdaq Global Market
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Large accelerated filer
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☐
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Accelerated filer
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þ
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Non-accelerated filer
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☐
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Smaller reporting company
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þ
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Emerging growth company
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☐
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March 31, 2020
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December 31, 2019
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||||
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(Unaudited)
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ASSETS
|
|
|
|
|
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Cash and due from banks
|
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$
|
26,641
|
|
|
$
|
23,769
|
|
Interest-bearing balances due from other banks
|
|
11,854
|
|
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20,539
|
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||
Federal funds sold
|
|
47
|
|
|
387
|
|
||
Cash and cash equivalents
|
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38,542
|
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44,695
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Available for sale securities at fair value (amortized cost of $274,041 and $258,104, respectively)
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276,281
|
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259,805
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Held to maturity securities at amortized cost (estimated fair value of $14,181 and $14,480, respectively)
|
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14,253
|
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14,409
|
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Loans, net of allowance for loan losses of $14,233 and $10,700, respectively
|
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1,715,561
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1,681,275
|
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||
Equity securities
|
|
17,653
|
|
|
19,315
|
|
||
Bank premises and equipment, net of accumulated depreciation of $13,130 and $12,432, respectively
|
|
54,573
|
|
|
50,916
|
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||
Other real estate owned, net
|
|
76
|
|
|
133
|
|
||
Accrued interest receivable
|
|
8,765
|
|
|
7,913
|
|
||
Deferred tax asset
|
|
1,142
|
|
|
—
|
|
||
Goodwill and other intangible assets, net
|
|
32,211
|
|
|
31,035
|
|
||
Bank owned life insurance
|
|
32,204
|
|
|
32,014
|
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Other assets
|
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8,108
|
|
|
7,406
|
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Total assets
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$
|
2,199,369
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|
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$
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2,148,916
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LIABILITIES
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Deposits:
|
|
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Noninterest-bearing
|
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$
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339,379
|
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$
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351,905
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Interest-bearing
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1,389,447
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1,355,801
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Total deposits
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1,728,826
|
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1,707,706
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Advances from Federal Home Loan Bank
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167,722
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131,600
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Repurchase agreements
|
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3,732
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2,995
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Subordinated debt, net of unamortized issuance costs
|
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42,831
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42,826
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Junior subordinated debt
|
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5,910
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5,897
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Accrued taxes and other liabilities
|
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17,076
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|
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15,916
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Total liabilities
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1,966,097
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1,906,940
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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, $1.00 par value per share; 40,000,000 shares authorized; 10,940,021 and 11,228,775 shares issued and outstanding, respectively
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10,940
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|
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11,229
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Surplus
|
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162,380
|
|
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168,658
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Retained earnings
|
|
60,146
|
|
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60,198
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Accumulated other comprehensive (loss) income
|
|
(194
|
)
|
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1,891
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Total stockholders’ equity
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233,272
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|
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241,976
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Total liabilities and stockholders’ equity
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$
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2,199,369
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$
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2,148,916
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Three months ended March 31,
|
||||||
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2020
|
|
2019
|
||||
INTEREST INCOME
|
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Interest and fees on loans
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$
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21,669
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$
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18,544
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Interest on investment securities
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1,695
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|
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1,926
|
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Other interest income
|
|
257
|
|
|
216
|
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Total interest income
|
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23,621
|
|
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20,686
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INTEREST EXPENSE
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Interest on deposits
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5,032
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4,106
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Interest on borrowings
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1,254
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|
|
1,424
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Total interest expense
|
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6,286
|
|
|
5,530
|
|
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Net interest income
|
|
17,335
|
|
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15,156
|
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|
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|
|
|
||||
Provision for loan losses
|
|
3,760
|
|
|
265
|
|
||
Net interest income after provision for loan losses
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13,575
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14,891
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|
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NONINTEREST INCOME
|
|
|
|
|
|
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Service charges on deposit accounts
|
|
571
|
|
|
400
|
|
||
Gain on sale of investment securities, net
|
|
172
|
|
|
2
|
|
||
Gain on sale of other real estate owned, net
|
|
26
|
|
|
5
|
|
||
Servicing fees and fee income on serviced loans
|
|
120
|
|
|
180
|
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||
Interchange fees
|
|
295
|
|
|
240
|
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Income from bank owned life insurance
|
|
190
|
|
|
152
|
|
||
Change in the fair value of equity securities
|
|
(826
|
)
|
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172
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Other operating income
|
|
541
|
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130
|
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Total noninterest income
|
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1,089
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|
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1,281
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Income before noninterest expense
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14,664
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16,172
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NONINTEREST EXPENSE
|
|
|
|
|
|
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Depreciation and amortization
|
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1,033
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|
|
764
|
|
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Salaries and employee benefits
|
|
7,953
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|
|
6,415
|
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Occupancy
|
|
531
|
|
|
414
|
|
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Data processing
|
|
693
|
|
|
536
|
|
||
Marketing
|
|
32
|
|
|
51
|
|
||
Professional fees
|
|
394
|
|
|
305
|
|
||
Acquisition expense
|
|
751
|
|
|
905
|
|
||
Other operating expenses
|
|
2,520
|
|
|
1,913
|
|
||
Total noninterest expense
|
|
13,907
|
|
|
11,303
|
|
||
Income before income tax expense
|
|
757
|
|
|
4,869
|
|
||
Income tax expense
|
|
149
|
|
|
952
|
|
||
Net income
|
|
$
|
608
|
|
|
$
|
3,917
|
|
|
|
|
|
|
||||
EARNINGS PER SHARE
|
|
|
|
|
|
|
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Basic earnings per share
|
|
$
|
0.05
|
|
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$
|
0.40
|
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Diluted earnings per share
|
|
0.05
|
|
|
0.40
|
|
||
Cash dividends declared per common share
|
|
0.06
|
|
|
0.05
|
|
|
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Three months ended March 31,
|
||||||
|
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2020
|
|
2019
|
||||
Net income
|
|
$
|
608
|
|
|
$
|
3,917
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
||
Unrealized gain (loss) on investment securities:
|
|
|
|
|
|
|
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Unrealized gain, available for sale, net of tax expense of $149, and $588, respectively
|
|
562
|
|
|
2,212
|
|
||
Reclassification of realized gain, net of tax expense of $36 and $0, respectively
|
|
(136
|
)
|
|
(2
|
)
|
||
Fair value of derivative financial instruments:
|
|
|
|
|
|
|
||
Change in fair value of interest rate swap designated as a cash flow hedge, net of tax benefit of $667 and $44, respectively
|
|
(2,511
|
)
|
|
(167
|
)
|
||
Total other comprehensive (loss) income
|
|
(2,085
|
)
|
|
2,043
|
|
||
Total comprehensive (loss) income
|
|
$
|
(1,477
|
)
|
|
$
|
5,960
|
|
|
|
Common
Stock |
|
Surplus
|
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Total
Stockholders’ Equity |
||||||||||
Three months ended:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at beginning of period
|
|
$
|
9,484
|
|
|
$
|
130,133
|
|
|
$
|
45,721
|
|
|
$
|
(3,076
|
)
|
|
$
|
182,262
|
|
Common stock issued in acquisition
|
|
764
|
|
|
17,873
|
|
|
—
|
|
|
—
|
|
|
18,637
|
|
|||||
Surrendered shares
|
|
(9
|
)
|
|
(223
|
)
|
|
—
|
|
|
—
|
|
|
(232
|
)
|
|||||
Shares repurchased
|
|
(144
|
)
|
|
(3,224
|
)
|
|
—
|
|
|
—
|
|
|
(3,368
|
)
|
|||||
Dividends declared, $0.05 per share
|
|
—
|
|
|
—
|
|
|
(534
|
)
|
|
—
|
|
|
(534
|
)
|
|||||
Stock-based compensation
|
|
35
|
|
|
254
|
|
|
—
|
|
|
—
|
|
|
289
|
|
|||||
Net income
|
|
—
|
|
|
—
|
|
|
3,917
|
|
|
—
|
|
|
3,917
|
|
|||||
Other comprehensive income, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,043
|
|
|
2,043
|
|
|||||
Balance at end of period
|
|
$
|
10,130
|
|
|
$
|
144,813
|
|
|
$
|
49,104
|
|
|
$
|
(1,033
|
)
|
|
$
|
203,014
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at beginning of period
|
|
$
|
11,229
|
|
|
$
|
168,658
|
|
|
$
|
60,198
|
|
|
$
|
1,891
|
|
|
$
|
241,976
|
|
Stock issuance costs
|
|
—
|
|
|
(45
|
)
|
|
—
|
|
|
—
|
|
|
(45
|
)
|
|||||
Surrendered shares
|
|
(13
|
)
|
|
(279
|
)
|
|
—
|
|
|
—
|
|
|
(292
|
)
|
|||||
Options exercised
|
|
3
|
|
|
43
|
|
|
—
|
|
|
—
|
|
|
46
|
|
|||||
Dividends declared, $0.06 per share
|
|
—
|
|
|
—
|
|
|
(660
|
)
|
|
—
|
|
|
(660
|
)
|
|||||
Stock-based compensation
|
|
48
|
|
|
335
|
|
|
—
|
|
|
—
|
|
|
383
|
|
|||||
Shares repurchased
|
|
(327
|
)
|
|
(6,332
|
)
|
|
—
|
|
|
—
|
|
|
(6,659
|
)
|
|||||
Net income
|
|
—
|
|
|
—
|
|
|
608
|
|
|
—
|
|
|
608
|
|
|||||
Other comprehensive loss, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,085
|
)
|
|
(2,085
|
)
|
|||||
Balance at end of period
|
|
$
|
10,940
|
|
|
$
|
162,380
|
|
|
$
|
60,146
|
|
|
$
|
(194
|
)
|
|
$
|
233,272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,
|
||||||
|
|
2020
|
|
2019
|
||||
Net income
|
|
$
|
608
|
|
|
$
|
3,917
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation and amortization
|
|
1,033
|
|
|
764
|
|
||
Provision for loan losses
|
|
3,760
|
|
|
265
|
|
||
Amortization of purchase accounting adjustments
|
|
(299
|
)
|
|
(393
|
)
|
||
Net amortization of securities
|
|
538
|
|
|
(28
|
)
|
||
Gain on sale of investment securities, net
|
|
(172
|
)
|
|
(2
|
)
|
||
Gain on sale of other real estate owned, net
|
|
(26
|
)
|
|
(5
|
)
|
||
FHLB stock dividend
|
|
(715
|
)
|
|
(85
|
)
|
||
Stock-based compensation
|
|
383
|
|
|
289
|
|
||
Deferred taxes
|
|
(347
|
)
|
|
289
|
|
||
Net change in value of bank owned life insurance
|
|
(190
|
)
|
|
(152
|
)
|
||
Amortization of subordinated debt issuance costs
|
|
5
|
|
|
12
|
|
||
Change in the fair value of equity securities
|
|
826
|
|
|
(172
|
)
|
||
Net change in:
|
|
|
|
|
||||
Accrued interest receivable
|
|
(851
|
)
|
|
(578
|
)
|
||
Other assets
|
|
(1,270
|
)
|
|
281
|
|
||
Accrued taxes and other liabilities
|
|
(2,500
|
)
|
|
1,464
|
|
||
Net cash provided by operating activities
|
|
$
|
783
|
|
|
$
|
5,866
|
|
|
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
|
|
|
||
Proceeds from sales of investment securities available for sale
|
|
$
|
16,572
|
|
|
$
|
393
|
|
Purchases of securities available for sale
|
|
(47,882
|
)
|
|
(22,331
|
)
|
||
Proceeds from maturities, prepayments and calls of investment securities available for sale
|
|
15,014
|
|
|
9,499
|
|
||
Proceeds from maturities, prepayments and calls of investment securities held to maturity
|
|
151
|
|
|
240
|
|
||
Proceeds from redemption or sale of equity securities
|
|
2,371
|
|
|
—
|
|
||
Purchase of equity securities
|
|
(820
|
)
|
|
—
|
|
||
Net decrease (increase) in loans
|
|
6,322
|
|
|
(11,345
|
)
|
||
Proceeds from sales of other real estate owned
|
|
131
|
|
|
3,275
|
|
||
Purchases of fixed assets
|
|
(1,759
|
)
|
|
(2,425
|
)
|
||
Distributions from investments
|
|
7
|
|
|
8
|
|
||
Cash acquired from acquisition of Mainland Bank
|
|
—
|
|
|
38,365
|
|
||
Cash paid for acquisition PlainsCapital branches, net of cash acquired
|
|
(10,761
|
)
|
|
—
|
|
||
Net cash (used in) provided by investing activities
|
|
$
|
(20,654
|
)
|
|
$
|
15,679
|
|
INVESTAR HOLDING CORPORATION
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED
|
||||||||
(Amounts in thousands)
|
||||||||
(Unaudited)
|
||||||||
|
|
|
|
|
||||
Cash flows from financing activities:
|
|
|
|
|
|
|
||
Net (decrease) increase in customer deposits
|
|
$
|
(15,803
|
)
|
|
$
|
63,432
|
|
Net increase (decrease) in repurchase agreements
|
|
737
|
|
|
(4,465
|
)
|
||
Net increase (decrease) in short-term FHLB advances
|
|
36,721
|
|
|
(21,400
|
)
|
||
Repayment of long-term FHLB advances
|
|
(600
|
)
|
|
—
|
|
||
Cash dividends paid on common stock
|
|
(679
|
)
|
|
(481
|
)
|
||
Proceeds from stock options and warrants exercised
|
|
46
|
|
|
—
|
|
||
Payments to repurchase common stock
|
|
(6,659
|
)
|
|
(3,368
|
)
|
||
Payment of stock issuance costs
|
|
(45
|
)
|
|
—
|
|
||
Net cash provided by financing activities
|
|
$
|
13,718
|
|
|
$
|
33,718
|
|
|
|
|
|
|
||||
Net change in cash and cash equivalents
|
|
$
|
(6,153
|
)
|
|
$
|
55,263
|
|
Cash and cash equivalents, beginning of period
|
|
44,695
|
|
|
17,140
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
38,542
|
|
|
$
|
72,403
|
|
•
|
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 price:
|
|
|
||
Cash paid
|
|
$
|
11,114
|
|
|
|
|
||
Fair value of assets acquired:
|
|
|
||
Cash and cash equivalents
|
|
353
|
|
|
Loans
|
|
45,287
|
|
|
Bank premises and equipment
|
|
2,770
|
|
|
Core deposit intangible asset
|
|
170
|
|
|
Other assets
|
|
127
|
|
|
Total assets acquired
|
|
48,707
|
|
|
|
|
|
||
Fair value of liabilities acquired:
|
|
|
||
Deposits
|
|
36,973
|
|
|
Other liabilities
|
|
1,084
|
|
|
Total liabilities assumed
|
|
38,057
|
|
|
|
|
|
||
Fair value of net assets acquired
|
|
10,650
|
|
|
Goodwill
|
|
$
|
464
|
|
|
|
Three months ended March 31,
|
||||||
|
|
2020
|
|
2019
|
||||
Earnings per common share - basic
|
|
|
|
|
|
|
||
Net income
|
|
$
|
608
|
|
|
$
|
3,917
|
|
Less: income allocated to participating securities
|
|
(3
|
)
|
|
(46
|
)
|
||
Net income allocated to common shareholders
|
|
$
|
605
|
|
|
$
|
3,871
|
|
Weighted-average basic shares outstanding
|
|
11,143,078
|
|
|
9,675,381
|
|
||
Basic earnings per common share
|
|
$
|
0.05
|
|
|
$
|
0.40
|
|
|
|
|
|
|
|
|
||
Earnings per common share - diluted
|
|
|
|
|
|
|
||
Net income allocated to common shareholders
|
|
$
|
605
|
|
|
$
|
3,871
|
|
Weighted-average basic shares outstanding
|
|
11,143,078
|
|
|
9,675,381
|
|
||
Dilutive effect of securities
|
|
68,265
|
|
|
95,371
|
|
||
Total weighted average diluted shares outstanding
|
|
11,211,343
|
|
|
9,770,752
|
|
||
Diluted earnings per common share
|
|
$
|
0.05
|
|
|
$
|
0.40
|
|
|
|
Three months ended March 31,
|
||||
|
|
2020
|
|
2019
|
||
Stock options
|
|
3,782
|
|
|
—
|
|
Restricted stock awards
|
|
295
|
|
|
55
|
|
Restricted stock units
|
|
64,780
|
|
|
44,467
|
|
|
|
Amortized Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized Losses |
|
Fair
Value
|
||||||||
March 31, 2020
|
|
|
|
|
||||||||||||
Obligations of U.S. government agencies and corporations
|
|
$
|
43,966
|
|
|
$
|
150
|
|
|
$
|
(107
|
)
|
|
$
|
44,009
|
|
Obligations of state and political subdivisions
|
|
32,717
|
|
|
652
|
|
|
(1,386
|
)
|
|
31,983
|
|
||||
Corporate bonds
|
|
24,069
|
|
|
243
|
|
|
(1,218
|
)
|
|
23,094
|
|
||||
Residential mortgage-backed securities
|
|
100,852
|
|
|
2,846
|
|
|
(16
|
)
|
|
103,682
|
|
||||
Commercial mortgage-backed securities
|
|
72,437
|
|
|
1,344
|
|
|
(268
|
)
|
|
73,513
|
|
||||
Total
|
|
$
|
274,041
|
|
|
$
|
5,235
|
|
|
$
|
(2,995
|
)
|
|
$
|
276,281
|
|
|
|
Amortized Cost
|
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
||||||||
December 31, 2019
|
|
|
|
|
||||||||||||
Obligations of U.S. government agencies and corporations
|
|
$
|
33,651
|
|
|
$
|
100
|
|
|
$
|
(100
|
)
|
|
$
|
33,651
|
|
Obligations of state and political subdivisions
|
|
32,920
|
|
|
541
|
|
|
(12
|
)
|
|
33,449
|
|
||||
Corporate bonds
|
|
19,245
|
|
|
192
|
|
|
(274
|
)
|
|
19,163
|
|
||||
Residential mortgage-backed securities
|
|
100,948
|
|
|
1,083
|
|
|
(85
|
)
|
|
101,946
|
|
||||
Commercial mortgage-backed securities
|
|
71,340
|
|
|
564
|
|
|
(308
|
)
|
|
71,596
|
|
||||
Total
|
|
$
|
258,104
|
|
|
$
|
2,480
|
|
|
$
|
(779
|
)
|
|
$
|
259,805
|
|
|
|
Three months ended March 31,
|
||||||
|
|
2020
|
|
2019
|
||||
Proceeds from sale
|
|
$
|
16,572
|
|
|
$
|
393
|
|
Gross gains
|
|
$
|
182
|
|
|
$
|
2
|
|
Gross losses
|
|
$
|
10
|
|
|
$
|
—
|
|
|
|
Amortized Cost
|
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
||||||||
March 31, 2020
|
|
|
|
|
||||||||||||
Obligations of state and political subdivisions
|
|
$
|
9,371
|
|
|
$
|
—
|
|
|
$
|
(262
|
)
|
|
$
|
9,109
|
|
Residential mortgage-backed securities
|
|
4,882
|
|
|
190
|
|
|
—
|
|
|
5,072
|
|
||||
Total
|
|
$
|
14,253
|
|
|
$
|
190
|
|
|
$
|
(262
|
)
|
|
$
|
14,181
|
|
|
|
Amortized Cost
|
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
||||||||
December 31, 2019
|
|
|
|
|
||||||||||||
Obligations of state and political subdivisions
|
|
$
|
9,487
|
|
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
9,501
|
|
Residential mortgage-backed securities
|
|
4,922
|
|
|
57
|
|
|
—
|
|
|
4,979
|
|
||||
Total
|
|
$
|
14,409
|
|
|
$
|
71
|
|
|
$
|
—
|
|
|
$
|
14,480
|
|
|
|
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||
|
|
Count
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses |
|
Fair Value
|
|
Unrealized
Losses |
|||||||||||||
March 31, 2020
|
|
|
|
|
|
|
|
||||||||||||||||||||
Obligations of U.S. government agencies and corporations
|
|
18
|
|
|
$
|
22,871
|
|
|
$
|
(107
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
22,871
|
|
|
$
|
(107
|
)
|
Obligations of state and political subdivisions
|
|
20
|
|
|
—
|
|
|
—
|
|
|
16,873
|
|
|
(1,386
|
)
|
|
16,873
|
|
|
(1,386
|
)
|
||||||
Corporate bonds
|
|
27
|
|
|
5,318
|
|
|
(408
|
)
|
|
7,539
|
|
|
(810
|
)
|
|
12,857
|
|
|
(1,218
|
)
|
||||||
Residential mortgage-backed securities
|
|
15
|
|
|
3,128
|
|
|
(14
|
)
|
|
147
|
|
|
(2
|
)
|
|
3,275
|
|
|
(16
|
)
|
||||||
Commercial mortgage-backed securities
|
|
30
|
|
|
19,442
|
|
|
(245
|
)
|
|
1,868
|
|
|
(23
|
)
|
|
21,310
|
|
|
(268
|
)
|
||||||
Total
|
|
110
|
|
|
$
|
50,759
|
|
|
$
|
(774
|
)
|
|
$
|
26,427
|
|
|
$
|
(2,221
|
)
|
|
$
|
77,186
|
|
|
$
|
(2,995
|
)
|
|
|
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||
|
|
Count
|
|
Fair Value
|
|
Unrealized
Losses |
|
Fair Value
|
|
Unrealized
Losses |
|
Fair Value
|
|
Unrealized
Losses |
|||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
||||||||||||||||||||
Obligations of U.S. government agencies and corporations
|
|
21
|
|
|
$
|
19,980
|
|
|
$
|
(94
|
)
|
|
$
|
955
|
|
|
$
|
(6
|
)
|
|
$
|
20,935
|
|
|
$
|
(100
|
)
|
Obligations of state and political subdivisions
|
|
10
|
|
|
212
|
|
|
(1
|
)
|
|
371
|
|
|
(11
|
)
|
|
583
|
|
|
(12
|
)
|
||||||
Corporate bonds
|
|
21
|
|
|
495
|
|
|
(5
|
)
|
|
7,829
|
|
|
(269
|
)
|
|
8,324
|
|
|
(274
|
)
|
||||||
Residential mortgage-backed securities
|
|
32
|
|
|
12,341
|
|
|
(56
|
)
|
|
6,190
|
|
|
(29
|
)
|
|
18,531
|
|
|
(85
|
)
|
||||||
Commercial mortgage-backed securities
|
|
57
|
|
|
29,072
|
|
|
(274
|
)
|
|
2,516
|
|
|
(34
|
)
|
|
31,588
|
|
|
(308
|
)
|
||||||
Total
|
|
141
|
|
|
$
|
62,100
|
|
|
$
|
(430
|
)
|
|
$
|
17,861
|
|
|
$
|
(349
|
)
|
|
$
|
79,961
|
|
|
$
|
(779
|
)
|
|
|
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||
|
|
Count
|
|
Fair Value
|
|
Unrealized
Losses |
|
Fair Value
|
|
Unrealized
Losses |
|
Fair Value
|
|
Unrealized
Losses |
|||||||||||||
March 31, 2020
|
|
|
|
|
|
|
|
||||||||||||||||||||
Obligations of state and political subdivisions
|
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,108
|
|
|
$
|
(262
|
)
|
|
$
|
9,108
|
|
|
$
|
(262
|
)
|
Residential mortgage-backed securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,108
|
|
|
$
|
(262
|
)
|
|
$
|
9,108
|
|
|
$
|
(262
|
)
|
|
|
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||
|
|
Count
|
|
Fair Value
|
|
Unrealized
Losses |
|
Fair Value
|
|
Unrealized
Losses |
|
Fair Value
|
|
Unrealized
Losses |
|||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
||||||||||||||||||||
Obligations of state and political subdivisions
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Residential mortgage-backed securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Securities Available For Sale
|
|
Securities Held To Maturity
|
||||||||||||
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost |
|
Fair
Value |
||||||||
March 31, 2020
|
|
|
|
|
||||||||||||
Due within one year
|
|
$
|
460
|
|
|
$
|
471
|
|
|
$
|
790
|
|
|
$
|
790
|
|
Due after one year through five years
|
|
12,834
|
|
|
12,925
|
|
|
3,575
|
|
|
3,554
|
|
||||
Due after five years through ten years
|
|
78,098
|
|
|
77,382
|
|
|
5,006
|
|
|
4,764
|
|
||||
Due after ten years
|
|
182,649
|
|
|
185,503
|
|
|
4,882
|
|
|
5,073
|
|
||||
Total debt securities
|
|
$
|
274,041
|
|
|
$
|
276,281
|
|
|
$
|
14,253
|
|
|
$
|
14,181
|
|
|
|
Securities Available For Sale
|
|
Securities Held To Maturity
|
||||||||||||
|
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||
December 31, 2019
|
|
|
|
|
||||||||||||
Due within one year
|
|
$
|
2,174
|
|
|
$
|
2,175
|
|
|
$
|
790
|
|
|
$
|
792
|
|
Due after one year through five years
|
|
13,525
|
|
|
13,675
|
|
|
3,575
|
|
|
3,582
|
|
||||
Due after five years through ten years
|
|
66,551
|
|
|
66,568
|
|
|
5,122
|
|
|
5,126
|
|
||||
Due after ten years
|
|
175,854
|
|
|
177,387
|
|
|
4,922
|
|
|
4,980
|
|
||||
Total debt securities
|
|
$
|
258,104
|
|
|
$
|
259,805
|
|
|
$
|
14,409
|
|
|
$
|
14,480
|
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Construction and development
|
|
$
|
191,597
|
|
|
$
|
197,797
|
|
1-4 Family
|
|
328,730
|
|
|
321,489
|
|
||
Multifamily
|
|
61,709
|
|
|
60,617
|
|
||
Farmland
|
|
29,373
|
|
|
27,780
|
|
||
Commercial real estate
|
|
776,354
|
|
|
731,060
|
|
||
Total mortgage loans on real estate
|
|
1,387,763
|
|
|
1,338,743
|
|
||
Commercial and industrial
|
|
313,850
|
|
|
323,786
|
|
||
Consumer
|
|
28,181
|
|
|
29,446
|
|
||
Total loans
|
|
$
|
1,729,794
|
|
|
$
|
1,691,975
|
|
|
|
March 31, 2020
|
||||||||||||||||||||||||||||||
|
|
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
|
|
$
|
190,205
|
|
|
$
|
177
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
1,212
|
|
|
$
|
1,392
|
|
|
$
|
—
|
|
|
$
|
191,597
|
|
1-4 Family
|
|
323,740
|
|
|
1,902
|
|
|
229
|
|
|
162
|
|
|
2,292
|
|
|
4,585
|
|
|
405
|
|
|
328,730
|
|
||||||||
Multifamily
|
|
60,799
|
|
|
910
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
910
|
|
|
—
|
|
|
61,709
|
|
||||||||
Farmland
|
|
27,109
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,264
|
|
|
29,373
|
|
||||||||
Commercial real estate
|
|
772,717
|
|
|
1,737
|
|
|
197
|
|
|
—
|
|
|
139
|
|
|
2,073
|
|
|
1,564
|
|
|
776,354
|
|
||||||||
Total mortgage loans on real estate
|
|
1,374,570
|
|
|
4,726
|
|
|
429
|
|
|
162
|
|
|
3,643
|
|
|
8,960
|
|
|
4,233
|
|
|
1,387,763
|
|
||||||||
Commercial and industrial
|
|
310,597
|
|
|
1,422
|
|
|
592
|
|
|
—
|
|
|
197
|
|
|
2,211
|
|
|
1,042
|
|
|
313,850
|
|
||||||||
Consumer
|
|
27,194
|
|
|
390
|
|
|
15
|
|
|
1
|
|
|
543
|
|
|
949
|
|
|
38
|
|
|
28,181
|
|
||||||||
Total loans
|
|
$
|
1,712,361
|
|
|
$
|
6,538
|
|
|
$
|
1,036
|
|
|
$
|
163
|
|
|
$
|
4,383
|
|
|
$
|
12,120
|
|
|
$
|
5,313
|
|
|
$
|
1,729,794
|
|
|
|
December 31, 2019
|
||||||||||||||||||||||||||||||
|
|
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
|
|
$
|
197,318
|
|
|
$
|
133
|
|
|
$
|
32
|
|
|
$
|
—
|
|
|
$
|
314
|
|
|
$
|
479
|
|
|
$
|
—
|
|
|
$
|
197,797
|
|
1-4 Family
|
|
317,572
|
|
|
998
|
|
|
413
|
|
|
138
|
|
|
1,923
|
|
|
3,472
|
|
|
445
|
|
|
321,489
|
|
||||||||
Multifamily
|
|
60,617
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60,617
|
|
||||||||
Farmland
|
|
25,516
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,264
|
|
|
27,780
|
|
||||||||
Commercial real estate
|
|
727,423
|
|
|
1,193
|
|
|
14
|
|
|
657
|
|
|
141
|
|
|
2,005
|
|
|
1,632
|
|
|
731,060
|
|
||||||||
Total mortgage loans on real estate
|
|
1,328,446
|
|
|
2,324
|
|
|
459
|
|
|
795
|
|
|
2,378
|
|
|
5,956
|
|
|
4,341
|
|
|
1,338,743
|
|
||||||||
Commercial and industrial
|
|
323,446
|
|
|
171
|
|
|
19
|
|
|
—
|
|
|
137
|
|
|
327
|
|
|
13
|
|
|
323,786
|
|
||||||||
Consumer
|
|
28,443
|
|
|
339
|
|
|
95
|
|
|
—
|
|
|
531
|
|
|
965
|
|
|
38
|
|
|
29,446
|
|
||||||||
Total loans
|
|
$
|
1,680,335
|
|
|
$
|
2,834
|
|
|
$
|
573
|
|
|
$
|
795
|
|
|
$
|
3,046
|
|
|
$
|
7,248
|
|
|
$
|
4,392
|
|
|
$
|
1,691,975
|
|
|
|
March 31, 2020
|
||||||||||||||||||
|
|
Pass
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Construction and development
|
|
$
|
182,433
|
|
|
$
|
7,842
|
|
|
$
|
1,322
|
|
|
$
|
—
|
|
|
$
|
191,597
|
|
1-4 Family
|
|
325,745
|
|
|
398
|
|
|
2,587
|
|
|
—
|
|
|
328,730
|
|
|||||
Multifamily
|
|
61,709
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
61,709
|
|
|||||
Farmland
|
|
26,825
|
|
|
—
|
|
|
2,548
|
|
|
—
|
|
|
29,373
|
|
|||||
Commercial real estate
|
|
771,590
|
|
|
—
|
|
|
4,764
|
|
|
—
|
|
|
776,354
|
|
|||||
Total mortgage loans on real estate
|
|
1,368,302
|
|
|
8,240
|
|
|
11,221
|
|
|
—
|
|
|
1,387,763
|
|
|||||
Commercial and industrial
|
|
306,138
|
|
|
—
|
|
|
6,919
|
|
|
793
|
|
|
313,850
|
|
|||||
Consumer
|
|
27,563
|
|
|
88
|
|
|
530
|
|
|
—
|
|
|
28,181
|
|
|||||
Total loans
|
|
$
|
1,702,003
|
|
|
$
|
8,328
|
|
|
$
|
18,670
|
|
|
$
|
793
|
|
|
$
|
1,729,794
|
|
|
|
December 31, 2019
|
||||||||||||||||||
|
|
Pass
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Construction and development
|
|
$
|
196,873
|
|
|
$
|
610
|
|
|
$
|
314
|
|
|
$
|
—
|
|
|
$
|
197,797
|
|
1-4 Family
|
|
318,549
|
|
|
714
|
|
|
2,198
|
|
|
28
|
|
|
321,489
|
|
|||||
Multifamily
|
|
60,617
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60,617
|
|
|||||
Farmland
|
|
25,516
|
|
|
—
|
|
|
2,264
|
|
|
—
|
|
|
27,780
|
|
|||||
Commercial real estate
|
|
729,921
|
|
|
—
|
|
|
1,139
|
|
|
—
|
|
|
731,060
|
|
|||||
Total mortgage loans on real estate
|
|
1,331,476
|
|
|
1,324
|
|
|
5,915
|
|
|
28
|
|
|
1,338,743
|
|
|||||
Commercial and industrial
|
|
318,519
|
|
|
2,910
|
|
|
2,264
|
|
|
93
|
|
|
323,786
|
|
|||||
Consumer
|
|
28,775
|
|
|
128
|
|
|
543
|
|
|
—
|
|
|
29,446
|
|
|||||
Total loans
|
|
$
|
1,678,770
|
|
|
$
|
4,362
|
|
|
$
|
8,722
|
|
|
$
|
121
|
|
|
$
|
1,691,975
|
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Balance, beginning of period
|
|
$
|
98,093
|
|
|
$
|
93,021
|
|
New loans
|
|
7,421
|
|
|
20,903
|
|
||
Repayments and changes in relationship
|
|
(5,895
|
)
|
|
(15,831
|
)
|
||
Balance, end of period
|
|
$
|
99,619
|
|
|
$
|
98,093
|
|
|
|
Three months ended March 31,
|
||||||
|
|
2020
|
|
2019
|
||||
Balance, beginning of period
|
|
$
|
10,700
|
|
|
$
|
9,454
|
|
Provision for loan losses
|
|
3,760
|
|
|
265
|
|
||
Loans charged off
|
|
(262
|
)
|
|
(104
|
)
|
||
Recoveries
|
|
35
|
|
|
27
|
|
||
Balance, end of period
|
|
$
|
14,233
|
|
|
$
|
9,642
|
|
|
|
Three months ended March 31, 2020
|
||||||||||||||||||||||||||||||
|
|
Construction & Development
|
|
Farmland
|
|
1-4 Family
|
|
Multifamily
|
|
Commercial Real Estate
|
|
Commercial & Industrial
|
|
Consumer
|
|
Total
|
||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
$
|
1,201
|
|
|
$
|
101
|
|
|
$
|
1,490
|
|
|
$
|
387
|
|
|
$
|
4,424
|
|
|
$
|
2,609
|
|
|
$
|
488
|
|
|
$
|
10,700
|
|
Provision
|
|
340
|
|
|
62
|
|
|
1,003
|
|
|
(36
|
)
|
|
1,439
|
|
|
683
|
|
|
269
|
|
|
3,760
|
|
||||||||
Charge-offs
|
|
—
|
|
|
—
|
|
|
(160
|
)
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
(95
|
)
|
|
(262
|
)
|
||||||||
Recoveries
|
|
13
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
16
|
|
|
35
|
|
||||||||
Ending balance
|
|
$
|
1,554
|
|
|
$
|
163
|
|
|
$
|
2,337
|
|
|
$
|
351
|
|
|
$
|
5,863
|
|
|
$
|
3,287
|
|
|
$
|
678
|
|
|
$
|
14,233
|
|
Ending allowance balance for loans individually evaluated for impairment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
175
|
|
|
188
|
|
||||||||
Ending allowance balance for loans acquired with deteriorated credit quality
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Ending allowance balance for loans collectively evaluated for impairment
|
|
1,554
|
|
|
163
|
|
|
2,337
|
|
|
351
|
|
|
5,863
|
|
|
3,274
|
|
|
503
|
|
|
14,045
|
|
||||||||
Loans receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance of loans individually evaluated for impairment
|
|
1,097
|
|
|
—
|
|
|
1,763
|
|
|
—
|
|
|
47
|
|
|
155
|
|
|
512
|
|
|
3,574
|
|
||||||||
Balance of loans acquired with deteriorated credit quality
|
|
—
|
|
|
2,264
|
|
|
405
|
|
|
—
|
|
|
1,564
|
|
|
1,042
|
|
|
38
|
|
|
5,313
|
|
||||||||
Balance of loans collectively evaluated for impairment
|
|
190,500
|
|
|
27,109
|
|
|
326,562
|
|
|
61,709
|
|
|
774,743
|
|
|
312,653
|
|
|
27,631
|
|
|
1,720,907
|
|
||||||||
Total period-end balance
|
|
$
|
191,597
|
|
|
$
|
29,373
|
|
|
$
|
328,730
|
|
|
$
|
61,709
|
|
|
$
|
776,354
|
|
|
$
|
313,850
|
|
|
$
|
28,181
|
|
|
$
|
1,729,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2019
|
||||||||||||||||||||||||||||||
|
|
Construction & Development
|
|
Farmland
|
|
1-4 Family
|
|
Multifamily
|
|
Commercial Real Estate
|
|
Commercial & Industrial
|
|
Consumer
|
|
Total
|
||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
$
|
1,038
|
|
|
$
|
81
|
|
|
$
|
1,465
|
|
|
$
|
331
|
|
|
$
|
4,182
|
|
|
$
|
1,641
|
|
|
$
|
716
|
|
|
$
|
9,454
|
|
Provision
|
|
55
|
|
|
20
|
|
|
44
|
|
|
49
|
|
|
44
|
|
|
21
|
|
|
32
|
|
|
265
|
|
||||||||
Charge-offs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(104
|
)
|
|
(104
|
)
|
||||||||
Recoveries
|
|
1
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
13
|
|
|
27
|
|
||||||||
Ending balance
|
|
$
|
1,094
|
|
|
$
|
101
|
|
|
$
|
1,511
|
|
|
$
|
380
|
|
|
$
|
4,226
|
|
|
$
|
1,673
|
|
|
$
|
657
|
|
|
$
|
9,642
|
|
Ending allowance balance for loans individually evaluated for impairment
|
|
66
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
200
|
|
|
266
|
|
||||||||
Ending allowance balance for loans acquired with deteriorated credit quality
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Ending allowance balance for loans collectively evaluated for impairment
|
|
1,028
|
|
|
101
|
|
|
1,511
|
|
|
380
|
|
|
4,226
|
|
|
1,673
|
|
|
457
|
|
|
9,376
|
|
||||||||
Loans receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance of loans individually evaluated for impairment
|
|
395
|
|
|
—
|
|
|
1,247
|
|
|
109
|
|
|
1,368
|
|
|
15
|
|
|
748
|
|
|
3,882
|
|
||||||||
Balance of loans acquired with deteriorated credit quality
|
|
11
|
|
|
2,264
|
|
|
475
|
|
|
—
|
|
|
1,565
|
|
|
1,263
|
|
|
43
|
|
|
5,621
|
|
||||||||
Balance of loans collectively evaluated for impairment
|
|
171,077
|
|
|
22,193
|
|
|
297,339
|
|
|
57,378
|
|
|
643,812
|
|
|
254,198
|
|
|
39,419
|
|
|
1,485,416
|
|
||||||||
Total period-end balance
|
|
$
|
171,483
|
|
|
$
|
24,457
|
|
|
$
|
299,061
|
|
|
$
|
57,487
|
|
|
$
|
646,745
|
|
|
$
|
255,476
|
|
|
$
|
40,210
|
|
|
$
|
1,494,919
|
|
|
|
March 31, 2020
|
||||||||||
|
|
Recorded Investment
|
|
Unpaid Principal Balance
|
|
Related Allowance
|
||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Construction and development
|
|
$
|
1,097
|
|
|
$
|
1,166
|
|
|
$
|
—
|
|
1-4 Family
|
|
1,763
|
|
|
1,855
|
|
|
—
|
|
|||
Commercial real estate
|
|
47
|
|
|
50
|
|
|
—
|
|
|||
Total mortgage loans on real estate
|
|
2,907
|
|
|
3,071
|
|
|
—
|
|
|||
Commercial and industrial
|
|
142
|
|
|
146
|
|
|
—
|
|
|||
Consumer
|
|
188
|
|
|
208
|
|
|
—
|
|
|||
Total
|
|
3,237
|
|
|
3,425
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
||||||
With related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and industrial
|
|
13
|
|
|
13
|
|
|
13
|
|
|||
Consumer
|
|
324
|
|
|
369
|
|
|
175
|
|
|||
Total
|
|
337
|
|
|
382
|
|
|
188
|
|
|||
|
|
|
|
|
|
|
||||||
Total loans:
|
|
|
|
|
|
|
|
|
|
|||
Construction and development
|
|
1,097
|
|
|
1,166
|
|
|
—
|
|
|||
1-4 Family
|
|
1,763
|
|
|
1,855
|
|
|
—
|
|
|||
Commercial real estate
|
|
47
|
|
|
50
|
|
|
—
|
|
|||
Total mortgage loans on real estate
|
|
2,907
|
|
|
3,071
|
|
|
—
|
|
|||
Commercial and industrial
|
|
155
|
|
|
159
|
|
|
13
|
|
|||
Consumer
|
|
512
|
|
|
577
|
|
|
175
|
|
|||
Total
|
|
$
|
3,574
|
|
|
$
|
3,807
|
|
|
$
|
188
|
|
|
|
December 31, 2019
|
||||||||||
|
|
Recorded Investment
|
|
Unpaid Principal Balance
|
|
Related Allowance
|
||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Construction and development
|
|
$
|
247
|
|
|
$
|
269
|
|
|
$
|
—
|
|
1-4 Family
|
|
1,662
|
|
|
1,745
|
|
|
—
|
|
|||
Commercial real estate
|
|
47
|
|
|
50
|
|
|
—
|
|
|||
Total mortgage loans on real estate
|
|
1,956
|
|
|
2,064
|
|
|
—
|
|
|||
Commercial and industrial
|
|
93
|
|
|
96
|
|
|
|
||||
Consumer
|
|
188
|
|
|
205
|
|
|
—
|
|
|||
Total
|
|
2,237
|
|
|
2,365
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
||||||
With related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Consumer
|
|
310
|
|
|
347
|
|
|
141
|
|
|||
Total
|
|
310
|
|
|
347
|
|
|
141
|
|
|||
|
|
|
|
|
|
|
||||||
Total loans:
|
|
|
|
|
|
|
|
|
|
|||
Construction and development
|
|
247
|
|
|
269
|
|
|
—
|
|
|||
1-4 Family
|
|
1,662
|
|
|
1,745
|
|
|
—
|
|
|||
Commercial real estate
|
|
47
|
|
|
50
|
|
|
—
|
|
|||
Total mortgage loans on real estate
|
|
1,956
|
|
|
2,064
|
|
|
—
|
|
|||
Commercial and industrial
|
|
93
|
|
|
96
|
|
|
—
|
|
|||
Consumer
|
|
498
|
|
|
552
|
|
|
141
|
|
|||
Total
|
|
$
|
2,547
|
|
|
$
|
2,712
|
|
|
$
|
141
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,
|
||||||||||||||
|
|
2020
|
|
2019
|
||||||||||||
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Construction and development
|
|
$
|
528
|
|
|
$
|
2
|
|
|
$
|
264
|
|
|
$
|
5
|
|
1-4 Family
|
|
1,754
|
|
|
2
|
|
|
1,232
|
|
|
10
|
|
||||
Multifamily
|
|
—
|
|
|
—
|
|
|
108
|
|
|
—
|
|
||||
Commercial real estate
|
|
47
|
|
|
—
|
|
|
961
|
|
|
2
|
|
||||
Total mortgage loans on real estate
|
|
2,329
|
|
|
4
|
|
|
2,565
|
|
|
17
|
|
||||
Commercial and industrial
|
|
109
|
|
|
1
|
|
|
20
|
|
|
—
|
|
||||
Consumer
|
|
185
|
|
|
1
|
|
|
245
|
|
|
—
|
|
||||
Total
|
|
2,623
|
|
|
6
|
|
|
2,830
|
|
|
17
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
With related allowance recorded:
|
|
|
|
|
|
|
|
|
||||||||
Construction and development
|
|
—
|
|
|
—
|
|
|
134
|
|
|
—
|
|
||||
Total mortgage loans on real estate
|
|
—
|
|
|
—
|
|
|
134
|
|
|
—
|
|
||||
Commercial and industrial
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer
|
|
312
|
|
|
1
|
|
|
582
|
|
|
—
|
|
||||
Total
|
|
325
|
|
|
1
|
|
|
716
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total loans:
|
|
|
|
|
|
|
|
|
||||||||
Construction and development
|
|
528
|
|
|
2
|
|
|
398
|
|
|
5
|
|
||||
1-4 Family
|
|
1,754
|
|
|
2
|
|
|
1,232
|
|
|
10
|
|
||||
Multifamily
|
|
—
|
|
|
—
|
|
|
108
|
|
|
—
|
|
||||
Commercial real estate
|
|
47
|
|
|
—
|
|
|
961
|
|
|
2
|
|
||||
Total mortgage loans on real estate
|
|
2,329
|
|
|
4
|
|
|
2,699
|
|
|
17
|
|
||||
Commercial and industrial
|
|
122
|
|
|
1
|
|
|
20
|
|
|
—
|
|
||||
Consumer
|
|
497
|
|
|
2
|
|
|
827
|
|
|
—
|
|
||||
Total
|
|
$
|
2,948
|
|
|
$
|
7
|
|
|
$
|
3,546
|
|
|
$
|
17
|
|
|
Three months ended March 31,
|
||||||||||||||||||||||
|
2020
|
|
2019
|
||||||||||||||||||||
|
Beginning of Period
|
|
Net Change
|
|
End of Period
|
|
Beginning of Period
|
|
Net Change
|
|
End of Period
|
||||||||||||
Unrealized gain (loss), available for sale, net
|
$
|
3,476
|
|
|
$
|
562
|
|
|
$
|
4,038
|
|
|
$
|
(1,647
|
)
|
|
$
|
2,212
|
|
|
$
|
565
|
|
Reclassification of realized gain, net
|
(2,131
|
)
|
|
(136
|
)
|
|
(2,267
|
)
|
|
(1,925
|
)
|
|
(2
|
)
|
|
(1,927
|
)
|
||||||
Unrealized loss, transfer from available for sale to held to maturity, net
|
4
|
|
|
—
|
|
|
4
|
|
|
5
|
|
|
—
|
|
|
5
|
|
||||||
Change in fair value of interest rate swap designated as a cash flow hedge, net
|
542
|
|
|
(2,511
|
)
|
|
(1,969
|
)
|
|
491
|
|
|
(167
|
)
|
|
324
|
|
||||||
Accumulated other comprehensive income (loss)
|
$
|
1,891
|
|
|
$
|
(2,085
|
)
|
|
$
|
(194
|
)
|
|
$
|
(3,076
|
)
|
|
$
|
2,043
|
|
|
$
|
(1,033
|
)
|
|
|
|
||
Expected dividends
|
|
1.12
|
%
|
|
Expected volatility
|
|
26.39
|
%
|
|
Risk-free interest rate
|
|
0.99
|
%
|
|
Expected term (in years)
|
|
6.5
|
|
|
Weighted-average grant date fair value
|
|
$
|
5.17
|
|
|
|
Three months ended March 31,
|
||||||||||||
|
|
2020
|
|
2019
|
||||||||||
|
|
Number
of Options
|
|
Weighted Average
Exercise Price
|
|
Number
of Options
|
|
Weighted Average
Exercise Price
|
||||||
Outstanding at beginning of period
|
|
357,214
|
|
|
$
|
16.96
|
|
|
340,646
|
|
|
$
|
15.98
|
|
Granted
|
|
58,993
|
|
|
21.36
|
|
|
36,984
|
|
|
24.40
|
|
||
Forfeited
|
|
(2,920
|
)
|
|
14.00
|
|
|
—
|
|
|
—
|
|
||
Exercised
|
|
(3,334
|
)
|
|
14.00
|
|
|
—
|
|
|
—
|
|
||
Outstanding at end of period
|
|
409,953
|
|
|
$
|
17.64
|
|
|
377,630
|
|
|
$
|
16.81
|
|
Exercisable at end of period
|
|
236,566
|
|
|
$
|
15.86
|
|
|
185,161
|
|
|
$
|
15.23
|
|
|
|
Three months ended March 31,
|
||||||||||||
|
|
2020
|
|
2019
|
||||||||||
|
|
Shares
|
|
Weighted Average Grant Date Fair Value
|
|
Shares
|
|
Weighted Average Grant Date Fair Value
|
||||||
Balance at beginning of period
|
|
168,216
|
|
|
$
|
22.43
|
|
|
135,848
|
|
|
$
|
20.47
|
|
Granted
|
|
99,393
|
|
|
21.70
|
|
|
76,374
|
|
|
24.46
|
|
||
Forfeited
|
|
(7,646
|
)
|
|
21.82
|
|
|
(180
|
)
|
|
22.30
|
|
||
Earned and issued
|
|
(48,088
|
)
|
|
21.82
|
|
|
(34,871
|
)
|
|
20.34
|
|
||
Balance at end of period
|
|
211,875
|
|
|
$
|
22.23
|
|
|
177,171
|
|
|
$
|
22.21
|
|
|
|
Estimated
Fair Value
|
|
Quoted Prices in
Active Markets for Identical Assets
(Level 1)
|
|
Significant Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of U.S. government agencies and corporations
|
|
$
|
44,009
|
|
|
$
|
—
|
|
|
$
|
44,009
|
|
|
$
|
—
|
|
Obligations of state and political subdivisions
|
|
31,983
|
|
|
—
|
|
|
15,110
|
|
|
16,873
|
|
||||
Corporate bonds
|
|
23,094
|
|
|
—
|
|
|
23,094
|
|
|
—
|
|
||||
Residential mortgage-backed securities
|
|
103,682
|
|
|
—
|
|
|
103,682
|
|
|
—
|
|
||||
Commercial mortgage-backed securities
|
|
73,513
|
|
|
—
|
|
|
73,513
|
|
|
—
|
|
||||
Equity securities
|
|
1,270
|
|
|
1,270
|
|
|
—
|
|
|
—
|
|
||||
Total assets
|
|
$
|
277,551
|
|
|
$
|
1,270
|
|
|
$
|
259,408
|
|
|
$
|
16,873
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Derivative financial instruments
|
|
$
|
2,500
|
|
|
$
|
—
|
|
|
$
|
2,500
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of U.S. government agencies and corporations
|
|
$
|
33,651
|
|
|
$
|
—
|
|
|
$
|
33,651
|
|
|
$
|
—
|
|
Obligations of state and political subdivisions
|
|
33,449
|
|
|
—
|
|
|
14,074
|
|
|
19,375
|
|
||||
Corporate bonds
|
|
19,163
|
|
|
—
|
|
|
19,163
|
|
|
—
|
|
||||
Residential mortgage-backed securities
|
|
101,946
|
|
|
—
|
|
|
101,946
|
|
|
—
|
|
||||
Commercial mortgage-backed securities
|
|
71,596
|
|
|
—
|
|
|
71,596
|
|
|
—
|
|
||||
Equity securities
|
|
2,097
|
|
|
2,097
|
|
|
—
|
|
|
—
|
|
||||
Derivative financial instruments
|
|
687
|
|
|
—
|
|
|
687
|
|
|
—
|
|
||||
Total assets
|
|
$
|
262,589
|
|
|
$
|
2,097
|
|
|
$
|
241,117
|
|
|
$
|
19,375
|
|
|
|
Obligations of State and
Political Subdivisions
|
||
Balance at December 31, 2019
|
|
$
|
19,375
|
|
Realized gains (losses) included in earnings
|
|
—
|
|
|
Unrealized losses included in other comprehensive (loss) income
|
|
(2,502
|
)
|
|
Purchases
|
|
—
|
|
|
Sales
|
|
—
|
|
|
Maturities, prepayments, and calls
|
|
—
|
|
|
Transfers into level 3
|
|
—
|
|
|
Transfers out of level 3
|
|
—
|
|
|
Balance at March 31, 2020
|
|
$
|
16,873
|
|
|
|
Obligations of State and
Political Subdivisions |
|
Corporate Bonds
|
|
Total
|
||||||
Balance at December 31, 2018
|
|
$
|
18,808
|
|
|
$
|
1,335
|
|
|
$
|
20,143
|
|
Realized gains (losses) included in earnings
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Unrealized gains (losses) included in other comprehensive (loss) income
|
|
116
|
|
|
(8
|
)
|
|
108
|
|
|||
Purchases
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Sales
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Maturities, prepayments, and calls
|
|
(23
|
)
|
|
—
|
|
|
(23
|
)
|
|||
Transfers into level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Transfers out of level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Balance at March 31, 2019
|
|
$
|
18,901
|
|
|
$
|
1,327
|
|
|
$
|
20,228
|
|
|
|
Estimated
Fair Value |
|
Valuation Technique
|
|
Unobservable Inputs
|
|
Range of Discounts
|
||
March 31, 2020
|
|
|
|
|
|
|
|
|
||
Obligations of State and Political Subdivisions
|
|
$
|
16,873
|
|
|
Option-adjusted discounted cash flow model; present value of expected future cash flow model
|
|
Bond Appraisal Adjustment(1)
|
|
1% - 18%
|
|
|
Estimated
Fair Value |
|
Valuation Technique
|
|
Unobservable Inputs
|
|
Range of Discounts
|
|
Weighted Average Discount
|
||
March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
||
Impaired loans
|
|
$
|
101
|
|
|
Discounted cash flows, Underlying collateral value
|
|
Collateral discounts and estimated costs to sell
|
|
0% - 100%
|
|
36%
|
|
|
|
|
|
|
|
|
|
|
|
||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
||
Impaired loans
|
|
$
|
55
|
|
|
Discounted cash flows, Underlying collateral value
|
|
Collateral discounts and estimated costs to sell
|
|
0% - 100%
|
|
31%
|
|
|
March 31, 2020
|
||||||||||||||||||
|
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
|
$
|
38,495
|
|
|
$
|
38,495
|
|
|
$
|
38,495
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Federal funds sold
|
|
47
|
|
|
47
|
|
|
47
|
|
|
—
|
|
|
—
|
|
|||||
Investment securities
|
|
290,534
|
|
|
290,462
|
|
|
—
|
|
|
264,481
|
|
|
25,981
|
|
|||||
Equity securities
|
|
17,653
|
|
|
17,653
|
|
|
1,270
|
|
|
16,383
|
|
|
—
|
|
|||||
Loans, net of allowance
|
|
1,715,561
|
|
|
1,729,202
|
|
|
—
|
|
|
—
|
|
|
1,729,202
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Deposits, noninterest-bearing
|
|
$
|
339,379
|
|
|
$
|
339,379
|
|
|
$
|
—
|
|
|
$
|
339,379
|
|
|
$
|
—
|
|
Deposits, interest-bearing
|
|
1,389,447
|
|
|
1,437,552
|
|
|
—
|
|
|
—
|
|
|
1,437,552
|
|
|||||
FHLB short-term advances and repurchase agreements
|
|
92,954
|
|
|
92,954
|
|
|
—
|
|
|
92,954
|
|
|
—
|
|
|||||
FHLB long-term advances
|
|
78,500
|
|
|
79,758
|
|
|
—
|
|
|
—
|
|
|
79,758
|
|
|||||
Junior subordinated debt
|
|
5,910
|
|
|
4,593
|
|
|
—
|
|
|
—
|
|
|
4,593
|
|
|||||
Subordinated debt
|
|
43,600
|
|
|
41,510
|
|
|
—
|
|
|
41,510
|
|
|
—
|
|
|||||
Derivative financial instruments
|
|
2,500
|
|
|
2,500
|
|
|
—
|
|
|
2,500
|
|
|
—
|
|
|
|
December 31, 2019
|
||||||||||||||||||
|
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
|
$
|
44,308
|
|
|
$
|
44,308
|
|
|
$
|
44,308
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Federal funds sold
|
|
387
|
|
|
387
|
|
|
387
|
|
|
—
|
|
|
—
|
|
|||||
Investment securities
|
|
274,214
|
|
|
274,285
|
|
|
—
|
|
|
245,410
|
|
|
28,875
|
|
|||||
Equity securities
|
|
19,315
|
|
|
19,316
|
|
|
2,097
|
|
|
17,219
|
|
|
—
|
|
|||||
Loans, net of allowance
|
|
1,681,275
|
|
|
1,680,364
|
|
|
—
|
|
|
—
|
|
|
1,680,364
|
|
|||||
Derivative financial instruments
|
|
687
|
|
|
687
|
|
|
—
|
|
|
687
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits, noninterest-bearing
|
|
$
|
351,905
|
|
|
$
|
351,905
|
|
|
$
|
—
|
|
|
$
|
351,905
|
|
|
$
|
—
|
|
Deposits, interest-bearing
|
|
1,355,801
|
|
|
1,368,194
|
|
|
—
|
|
|
—
|
|
|
1,368,194
|
|
|||||
FHLB short-term advances and repurchase agreements
|
|
56,095
|
|
|
56,095
|
|
|
—
|
|
|
56,095
|
|
|
—
|
|
|||||
FHLB long-term advances
|
|
78,500
|
|
|
76,635
|
|
|
—
|
|
|
—
|
|
|
76,635
|
|
|||||
Junior subordinated debt
|
|
5,897
|
|
|
7,747
|
|
|
—
|
|
|
—
|
|
|
7,747
|
|
|||||
Subordinated debt
|
|
43,600
|
|
|
56,399
|
|
|
—
|
|
|
56,399
|
|
|
—
|
|
|
Three months ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Income tax expense
|
$
|
149
|
|
|
$
|
952
|
|
Effective tax rate
|
19.7
|
%
|
|
19.6
|
%
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Commitments to extend credit
|
|
|
|
|
||||
Loan commitments
|
|
$
|
276,101
|
|
|
$
|
242,180
|
|
Standby letters of credit
|
|
11,758
|
|
|
11,475
|
|
Total operating lease cost
|
$
|
133.0
|
|
Weighted-average remaining lease term (in years)
|
9.2
|
|
|
Weighted-average discount rate
|
2.8
|
%
|
2020
|
$
|
433
|
|
2021
|
593
|
|
|
2022
|
598
|
|
|
2023
|
595
|
|
|
2024
|
515
|
|
|
Thereafter
|
2,168
|
|
|
Total
|
$
|
4,902
|
|
•
|
the significant risks and uncertainties for our business, results of operations and financial condition, as well as our regulatory capital and liquidity ratios and other regulatory requirements in the United States caused by the COVID-19 pandemic, which will depend on several factors, including the scope and duration of the pandemic, its influence on the economy and financial markets, the effectiveness of our work from home arrangements, the impact of market participants on which we rely, and actions taken by governmental authorities and other third parties in response to the pandemic;
|
•
|
business and economic conditions generally and in the financial services industry in particular, whether nationally, regionally or in the markets in which we operate; including evolving risks to economic activity and our customers posed by the COVID-19 pandemic;
|
•
|
our ability to achieve organic loan and deposit growth, and the composition of that growth;
|
•
|
changes (or the lack of changes) in interest rates, yield curves and interest rate spread relationships that affect our loan and deposit pricing;
|
•
|
possible cessation or market replacement of LIBOR and the related effect on our LIBOR-based financial products and contracts, including, but not limited to, hedging products, debt obligations, investments, and loans;
|
•
|
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, Texas and Alabama;
|
•
|
concentration of credit exposure;
|
•
|
any deterioration in asset quality and higher loan charge-offs, and the time and effort necessary to resolve problem assets;
|
•
|
a reduction in liquidity, including as a result of a reduction in the amount of deposits we hold or other sources of liquidity;
|
•
|
impairment of our goodwill and other intangible assets;
|
•
|
our potential growth, including our entrance or expansion into new markets, and the need for sufficient capital to support that growth;
|
•
|
difficulties in identifying attractive acquisition opportunities and strategic partners that will complement our relationship banking approach;
|
•
|
whether we complete any pending acquisitions, including the pending acquisition of Cheaha Financial Group, Inc., and efficiently integrate completed acquisitions into our operations, meet the regulatory requirements related to such acquisitions, retain the customers of acquired businesses and grow the acquired operations;
|
•
|
the impact of litigation and other legal proceedings to which we become subject;
|
•
|
data processing system failures and errors;
|
•
|
cyber attacks and other security breaches;
|
•
|
competitive pressures in the commercial finance, retail banking, mortgage lending and consumer finance industries, as well as the financial resources of, and products offered by, competitors;
|
•
|
the impact of changes in laws and regulations applicable to us, including banking, securities and tax laws and regulations and accounting standards, as well as changes in the interpretation of such laws and regulations by our regulators;
|
•
|
changes in the scope and costs of FDIC insurance and other coverages;
|
•
|
governmental monetary and fiscal policies;
|
•
|
hurricanes, floods, other natural disasters and adverse weather; oil spills and other man-made disasters; acts of terrorism, an outbreak of hostilities or other international or domestic calamities, acts of God and other matters beyond our control; and
|
•
|
other circumstances, many of which are beyond our control.
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||
|
|
Amount
|
|
Percentage of
Total Loans |
|
Amount
|
|
Percentage of
Total Loans |
||||||
Construction and development
|
|
$
|
191,597
|
|
|
11.1
|
%
|
|
$
|
197,797
|
|
|
11.7
|
%
|
1-4 Family
|
|
328,730
|
|
|
19.0
|
|
|
321,489
|
|
|
19.0
|
|
||
Multifamily
|
|
61,709
|
|
|
3.6
|
|
|
60,617
|
|
|
3.6
|
|
||
Farmland
|
|
29,373
|
|
|
1.7
|
|
|
27,780
|
|
|
1.6
|
|
||
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|||
Owner-occupied
|
|
370,209
|
|
|
21.4
|
|
|
352,324
|
|
|
20.8
|
|
||
Nonowner-occupied
|
|
406,145
|
|
|
23.5
|
|
|
378,736
|
|
|
22.4
|
|
||
Total mortgage loans on real estate
|
|
1,387,763
|
|
|
80.3
|
|
|
1,338,743
|
|
|
79.1
|
|
||
Commercial and industrial
|
|
313,850
|
|
|
18.1
|
|
|
323,786
|
|
|
19.2
|
|
||
Consumer
|
|
28,181
|
|
|
1.6
|
|
|
29,446
|
|
|
1.7
|
|
||
Total loans
|
|
$
|
1,729,794
|
|
|
100.0
|
%
|
|
$
|
1,691,975
|
|
|
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
|
|
$
|
147,686
|
|
|
$
|
26,122
|
|
|
$
|
12,322
|
|
|
$
|
5,382
|
|
|
$
|
85
|
|
|
$
|
191,597
|
|
1-4 Family
|
|
50,636
|
|
|
94,113
|
|
|
47,652
|
|
|
22,761
|
|
|
113,568
|
|
|
328,730
|
|
||||||
Multifamily
|
|
5,005
|
|
|
36,754
|
|
|
19,586
|
|
|
184
|
|
|
180
|
|
|
61,709
|
|
||||||
Farmland
|
|
7,472
|
|
|
12,859
|
|
|
8,024
|
|
|
272
|
|
|
746
|
|
|
29,373
|
|
||||||
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Owner-occupied
|
|
33,460
|
|
|
167,184
|
|
|
100,405
|
|
|
50,843
|
|
|
18,317
|
|
|
370,209
|
|
||||||
Nonowner-occupied
|
|
56,785
|
|
|
171,325
|
|
|
137,768
|
|
|
40,198
|
|
|
69
|
|
|
406,145
|
|
||||||
Total mortgage loans on real estate
|
|
301,044
|
|
|
508,357
|
|
|
325,757
|
|
|
119,640
|
|
|
132,965
|
|
|
1,387,763
|
|
||||||
Commercial and industrial
|
|
171,461
|
|
|
100,693
|
|
|
26,689
|
|
|
6,841
|
|
|
8,166
|
|
|
313,850
|
|
||||||
Consumer
|
|
6,736
|
|
|
19,251
|
|
|
1,977
|
|
|
213
|
|
|
4
|
|
|
28,181
|
|
||||||
Total loans
|
|
$
|
479,241
|
|
|
$
|
628,301
|
|
|
$
|
354,423
|
|
|
$
|
126,694
|
|
|
$
|
141,135
|
|
|
$
|
1,729,794
|
|
Industry
|
|
Percentage of Loan Portfolio
|
|
Oil and gas
|
|
3.2
|
%
|
Food services
|
|
1.8
|
|
Hospitality
|
|
0.4
|
|
Entertainment
|
|
0.6
|
|
Total
|
|
6.0
|
%
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||
|
|
Balance
|
|
Percentage of Portfolio
|
|
Balance
|
|
Percentage of Portfolio
|
||||||
Obligations of U.S. government agencies and corporations
|
|
$
|
44,009
|
|
|
15.2
|
%
|
|
$
|
33,651
|
|
|
12.3
|
%
|
Obligations of state and political subdivisions
|
|
41,354
|
|
|
14.2
|
|
|
42,936
|
|
|
15.7
|
|
||
Corporate bonds
|
|
23,094
|
|
|
7.9
|
|
|
19,163
|
|
|
6.9
|
|
||
Residential mortgage-backed securities
|
|
108,564
|
|
|
37.4
|
|
|
106,868
|
|
|
39.0
|
|
||
Commercial mortgage-backed securities
|
|
73,513
|
|
|
25.3
|
|
|
71,596
|
|
|
26.1
|
|
||
Total
|
|
$
|
290,534
|
|
|
100.0
|
%
|
|
$
|
274,214
|
|
|
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
|
|
$
|
790
|
|
|
5.88
|
%
|
|
$
|
3,575
|
|
|
5.88
|
%
|
|
$
|
5,006
|
|
|
3.59
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Residential mortgage-backed securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,882
|
|
|
2.79
|
|
||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of U.S. government agencies and corporations
|
|
142
|
|
|
3.13
|
|
|
891
|
|
|
2.66
|
|
|
39,291
|
|
|
3.12
|
|
|
3,642
|
|
|
3.20
|
|
||||
Obligations of state and political subdivisions
|
|
24
|
|
|
2.66
|
|
|
1,707
|
|
|
3.05
|
|
|
12,422
|
|
|
2.81
|
|
|
18,564
|
|
|
3.78
|
|
||||
Corporate bonds
|
|
162
|
|
|
6.65
|
|
|
8,806
|
|
|
3.75
|
|
|
15,101
|
|
|
3.68
|
|
|
—
|
|
|
—
|
|
||||
Residential mortgage-backed securities
|
|
132
|
|
|
3.06
|
|
|
—
|
|
|
—
|
|
|
630
|
|
|
2.47
|
|
|
100,090
|
|
|
2.30
|
|
||||
Commercial mortgage-backed securities
|
|
—
|
|
|
—
|
|
|
1,430
|
|
|
2.94
|
|
|
10,654
|
|
|
2.42
|
|
|
60,353
|
|
|
2.90
|
|
||||
|
|
$
|
1,250
|
|
|
|
|
|
$
|
16,409
|
|
|
|
|
|
$
|
83,104
|
|
|
|
|
|
$
|
187,531
|
|
|
|
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||
|
|
Amount
|
|
Percentage of Total Deposits
|
|
Amount
|
|
Percentage of Total Deposits
|
||||||
Noninterest-bearing demand deposits
|
|
$
|
339,379
|
|
|
19.6
|
%
|
|
$
|
351,905
|
|
|
20.6
|
%
|
Interest-bearing demand deposits
|
|
378,787
|
|
|
21.9
|
|
|
335,478
|
|
|
19.6
|
|
||
Money market deposit accounts
|
|
197,703
|
|
|
11.5
|
|
|
198,999
|
|
|
11.7
|
|
||
Savings accounts
|
|
118,193
|
|
|
6.8
|
|
|
115,324
|
|
|
6.8
|
|
||
Time deposits
|
|
694,764
|
|
|
40.2
|
|
|
706,000
|
|
|
41.3
|
|
||
Total deposits
|
|
$
|
1,728,826
|
|
|
100.0
|
%
|
|
$
|
1,707,706
|
|
|
100.0
|
%
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||
|
|
Certificates of Deposit
|
|
Other Time Deposits
|
|
Certificates of Deposit
|
|
Other Time Deposits
|
||||||||
Time remaining until maturity:
|
|
|
|
|
|
|
|
|
||||||||
Three months or less
|
|
$
|
86,884
|
|
|
$
|
1,396
|
|
|
$
|
89,995
|
|
|
$
|
2,162
|
|
Over three months through six months
|
|
133,548
|
|
|
1,029
|
|
|
74,759
|
|
|
1,421
|
|
||||
Over six months through twelve months
|
|
148,361
|
|
|
2,321
|
|
|
198,801
|
|
|
1,852
|
|
||||
Over one year through three years
|
|
78,913
|
|
|
5,265
|
|
|
90,541
|
|
|
4,954
|
|
||||
Over three years
|
|
12,376
|
|
|
1,594
|
|
|
13,935
|
|
|
1,629
|
|
||||
|
|
$
|
460,082
|
|
|
$
|
11,605
|
|
|
$
|
468,031
|
|
|
$
|
12,018
|
|
|
|
Average Balances
|
|
Cost of Funds
|
||||||||||
|
|
March 31, 2020
|
|
March 31, 2019
|
|
March 31, 2020
|
|
March 31, 2019
|
||||||
Federal funds purchased and other short-term borrowings
|
|
$
|
54,482
|
|
|
$
|
132,289
|
|
|
1.36
|
%
|
|
2.21
|
%
|
Securities sold under agreements to repurchase
|
|
3,081
|
|
|
3,605
|
|
|
0.76
|
|
|
2.33
|
|
||
Total short-term borrowings
|
|
$
|
57,563
|
|
|
$
|
135,894
|
|
|
1.33
|
%
|
|
2.19
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,
|
||||||||||||||||||||
|
|
2020
|
|
2019
|
||||||||||||||||||
|
|
Average
Balance |
|
Interest
Income/ Expense (1) |
|
Yield/ Rate(1)
|
|
Average
Balance |
|
Interest
Income/ Expense(1) |
|
Yield/ Rate(1)
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans
|
|
$
|
1,700,006
|
|
|
$
|
21,669
|
|
|
5.11
|
%
|
|
$
|
1,436,798
|
|
|
$
|
18,544
|
|
|
5.23
|
%
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Taxable
|
|
249,581
|
|
|
1,510
|
|
|
2.43
|
|
|
243,065
|
|
|
1,729
|
|
|
2.88
|
|
||||
Tax-exempt
|
|
28,258
|
|
|
185
|
|
|
2.62
|
|
|
32,325
|
|
|
197
|
|
|
2.47
|
|
||||
Interest-earning balances with banks
|
|
32,366
|
|
|
257
|
|
|
3.18
|
|
|
31,250
|
|
|
216
|
|
|
2.80
|
|
||||
Total interest-earning assets
|
|
2,010,211
|
|
|
23,621
|
|
|
4.71
|
|
|
1,743,438
|
|
|
20,686
|
|
|
4.81
|
|
||||
Cash and due from banks
|
|
26,560
|
|
|
|
|
|
|
|
|
20,150
|
|
|
|
|
|
|
|
||||
Intangible assets
|
|
31,299
|
|
|
|
|
|
|
|
|
22,301
|
|
|
|
|
|
|
|
||||
Other assets
|
|
107,190
|
|
|
|
|
|
|
|
|
77,867
|
|
|
|
|
|
|
|
||||
Allowance for loan losses
|
|
(10,744
|
)
|
|
|
|
|
|
|
|
(9,565
|
)
|
|
|
|
|
|
|
||||
Total assets
|
|
$
|
2,164,516
|
|
|
|
|
|
|
|
|
$
|
1,854,191
|
|
|
|
|
|
|
|
||
Liabilities and stockholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing demand deposits
|
|
$
|
556,541
|
|
|
$
|
1,203
|
|
|
0.87
|
%
|
|
$
|
504,123
|
|
|
$
|
1,353
|
|
|
1.09
|
%
|
Savings deposits
|
|
117,153
|
|
|
129
|
|
|
0.44
|
|
|
104,503
|
|
|
119
|
|
|
0.46
|
|
||||
Time deposits
|
|
697,939
|
|
|
3,700
|
|
|
2.13
|
|
|
574,942
|
|
|
2,634
|
|
|
1.86
|
|
||||
Total interest-bearing deposits
|
|
1,371,633
|
|
|
5,032
|
|
|
1.47
|
|
|
1,183,568
|
|
|
4,106
|
|
|
1.41
|
|
||||
Short-term borrowings
|
|
57,563
|
|
|
191
|
|
|
1.33
|
|
|
135,894
|
|
|
733
|
|
|
2.19
|
|
||||
Long-term debt
|
|
130,247
|
|
|
1,063
|
|
|
3.28
|
|
|
94,161
|
|
|
691
|
|
|
2.98
|
|
||||
Total interest-bearing liabilities
|
|
1,559,443
|
|
|
6,286
|
|
|
1.62
|
|
|
1,413,623
|
|
|
5,530
|
|
|
1.59
|
|
||||
Noninterest-bearing deposits
|
|
343,884
|
|
|
|
|
|
|
|
|
239,064
|
|
|
|
|
|
|
|
||||
Other liabilities
|
|
17,575
|
|
|
|
|
|
|
|
|
11,682
|
|
|
|
|
|
|
|
||||
Stockholders’ equity
|
|
243,614
|
|
|
|
|
|
|
|
|
189,822
|
|
|
|
|
|
|
|
||||
Total liabilities and stockholders’ equity
|
|
$
|
2,164,516
|
|
|
|
|
|
|
|
$
|
1,854,191
|
|
|
|
|
|
|
||||
Net interest income/net interest margin
|
|
|
|
$
|
17,335
|
|
|
3.46
|
%
|
|
|
|
|
$
|
15,156
|
|
|
3.53
|
%
|
(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 March 31, 2020 vs.
three months ended March 31, 2019 |
||||||||||
|
|
Volume
|
|
Rate
|
|
Net(1)
|
||||||
Interest income:
|
|
|
|
|
|
|
||||||
Loans
|
|
$
|
3,397
|
|
|
$
|
(272
|
)
|
|
$
|
3,125
|
|
Securities:
|
|
|
|
|
|
|
|
|||||
Taxable
|
|
45
|
|
|
(264
|
)
|
|
(219
|
)
|
|||
Tax-exempt
|
|
(24
|
)
|
|
12
|
|
|
(12
|
)
|
|||
Interest-earning balances with banks
|
|
8
|
|
|
33
|
|
|
41
|
|
|||
Total interest-earning assets
|
|
3,426
|
|
|
(491
|
)
|
|
2,935
|
|
|||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|||
Interest-bearing demand deposits
|
|
141
|
|
|
(291
|
)
|
|
(150
|
)
|
|||
Savings deposits
|
|
14
|
|
|
(4
|
)
|
|
10
|
|
|||
Time deposits
|
|
563
|
|
|
503
|
|
|
1,066
|
|
|||
Short-term borrowings
|
|
(422
|
)
|
|
(120
|
)
|
|
(542
|
)
|
|||
Long-term debt
|
|
265
|
|
|
107
|
|
|
372
|
|
|||
Total interest-bearing liabilities
|
|
561
|
|
|
195
|
|
|
756
|
|
|||
Change in net interest income
|
|
$
|
2,865
|
|
|
$
|
(686
|
)
|
|
$
|
2,179
|
|
(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.
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Construction and development
|
|
$
|
1,554
|
|
|
$
|
1,201
|
|
1-4 Family
|
|
2,337
|
|
|
1,490
|
|
||
Multifamily
|
|
351
|
|
|
387
|
|
||
Farmland
|
|
163
|
|
|
101
|
|
||
Commercial real estate
|
|
5,863
|
|
|
4,424
|
|
||
Total mortgage loans on real estate
|
|
10,268
|
|
|
7,603
|
|
||
Commercial and industrial
|
|
3,287
|
|
|
2,609
|
|
||
Consumer
|
|
678
|
|
|
488
|
|
||
Total
|
|
$
|
14,233
|
|
|
$
|
10,700
|
|
|
|
Three months ended March 31,
|
||||||
|
|
2020
|
|
2019
|
||||
Allowance at beginning of period
|
|
$
|
10,700
|
|
|
$
|
9,454
|
|
Provision for loan losses
|
|
3,760
|
|
|
265
|
|
||
Charge-offs:
|
|
|
|
|
||||
Mortgage loans on real estate:
|
|
|
|
|
||||
1-4 Family
|
|
(160
|
)
|
|
—
|
|
||
Commercial and industrial
|
|
(7
|
)
|
|
—
|
|
||
Consumer
|
|
(95
|
)
|
|
(104
|
)
|
||
Total charge-offs
|
|
(262
|
)
|
|
(104
|
)
|
||
Recoveries
|
|
|
|
|
||||
Mortgage loans on real estate:
|
|
|
|
|
||||
Construction and development
|
|
13
|
|
|
1
|
|
||
1-4 Family
|
|
4
|
|
|
2
|
|
||
Commercial and industrial
|
|
2
|
|
|
11
|
|
||
Consumer
|
|
16
|
|
|
13
|
|
||
Total recoveries
|
|
35
|
|
|
27
|
|
||
Net charge-offs
|
|
(227
|
)
|
|
(77
|
)
|
||
Balance at end of period
|
|
$
|
14,233
|
|
|
$
|
9,642
|
|
Net charge-offs to:
|
|
|
|
|
||||
Loans - average
|
|
0.01
|
%
|
|
0.01
|
%
|
||
Allowance for loan losses
|
|
1.59
|
%
|
|
0.80
|
%
|
||
Allowance for loan losses to:
|
|
|
|
|
||||
Total loans
|
|
0.82
|
%
|
|
0.64
|
%
|
||
Nonperforming loans
|
|
188.35
|
%
|
|
159.93
|
%
|
|
|
As of and for the three months ended
|
|
As of and for the year ended
|
||||
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Nonaccrual loans
|
|
$
|
7,394
|
|
|
$
|
5,490
|
|
Accruing loans past due 90 days or more
|
|
163
|
|
|
795
|
|
||
Total nonperforming loans
|
|
7,557
|
|
|
6,285
|
|
||
TDRs
|
|
790
|
|
|
1,020
|
|
||
Total nonperforming loans and restructured loans
|
|
$
|
8,347
|
|
|
$
|
7,305
|
|
Interest income recognized on nonperforming loans and restructured loans
|
|
$
|
21
|
|
|
$
|
144
|
|
Interest income foregone on nonperforming loans and restructured loans
|
|
$
|
114
|
|
|
$
|
300
|
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
1-4 Family
|
|
$
|
28
|
|
|
$
|
133
|
|
Commercial real estate
|
|
48
|
|
|
—
|
|
||
Total other real estate owned
|
|
$
|
76
|
|
|
$
|
133
|
|
|
|
Three months ended March 31,
|
||||||
|
|
2020
|
|
2019
|
||||
Balance, beginning of period
|
|
$
|
133
|
|
|
$
|
3,611
|
|
Transfers from acquired loans
|
|
48
|
|
|
—
|
|
||
Acquired other real estate owned
|
|
—
|
|
|
1,407
|
|
||
Sales of other real estate owned
|
|
(105
|
)
|
|
(3,270
|
)
|
||
Balance, end of period
|
|
$
|
76
|
|
|
$
|
1,748
|
|
As of March 31, 2020
|
||
Changes in Interest Rates (in basis points)
|
|
Estimated Increase/Decrease in Net Interest Income (1)
|
+300
|
|
(1.9)%
|
+200
|
|
(1.6)%
|
+100
|
|
(0.8)%
|
-100
|
|
0.5%
|
(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 March 31,
|
|
Three months ended March 31,
|
||||||||
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||
Noninterest-bearing demand deposits
|
|
18
|
%
|
|
14
|
%
|
|
—
|
%
|
|
—
|
%
|
Interest-bearing demand deposits
|
|
29
|
|
|
31
|
|
|
0.87
|
|
|
1.09
|
|
Savings accounts
|
|
6
|
|
|
6
|
|
|
0.44
|
|
|
0.46
|
|
Time deposits
|
|
37
|
|
|
35
|
|
|
2.13
|
|
|
1.86
|
|
Short-term borrowings
|
|
3
|
|
|
8
|
|
|
1.33
|
|
|
2.19
|
|
Long-term borrowed funds
|
|
7
|
|
|
6
|
|
|
3.28
|
|
|
2.98
|
|
Total deposits and borrowed funds
|
|
100
|
%
|
|
100
|
%
|
|
1.32
|
%
|
|
1.36
|
%
|
Capital Tiers(1)
|
|
Tier 1 Leverage Ratio
|
|
Common Equity Tier 1 Capital Ratio
|
|
Tier 1 Capital Ratio
|
|
Total Capital Ratio
|
|
Ratio of Tangible to Total Assets
|
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
|
||||||
March 31, 2020
|
|
|
|
|
|
|
|
|
||||||
Investar Holding Corporation:
|
|
|
|
|
|
|
|
|
||||||
Tier 1 leverage capital
|
|
$
|
208,781
|
|
|
9.82
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Common equity tier 1 capital
|
|
202,281
|
|
|
10.95
|
|
|
—
|
|
|
—
|
|
||
Tier 1 capital
|
|
208,781
|
|
|
11.30
|
|
|
—
|
|
|
—
|
|
||
Total capital
|
|
265,989
|
|
|
14.39
|
|
|
—
|
|
|
—
|
|
||
Investar Bank:
|
|
|
|
|
|
|
|
|
||||||
Tier 1 leverage capital
|
|
223,158
|
|
|
10.52
|
|
|
106,111
|
|
|
5.00
|
|
||
Common equity tier 1 capital
|
|
223,158
|
|
|
12.09
|
|
|
119,978
|
|
|
6.50
|
|
||
Tier 1 capital
|
|
223,158
|
|
|
12.09
|
|
|
147,666
|
|
|
8.00
|
|
||
Total capital
|
|
237,535
|
|
|
12.87
|
|
|
184,582
|
|
|
10.00
|
|
||
|
|
|
|
|
|
|
|
|
||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
||||||
Investar Holding Corporation:
|
|
|
|
|
|
|
|
|
||||||
Tier 1 leverage capital
|
|
$
|
215,550
|
|
|
10.45
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Common equity tier 1 capital
|
|
209,050
|
|
|
11.67
|
|
|
—
|
|
|
—
|
|
||
Tier 1 capital
|
|
215,550
|
|
|
12.03
|
|
|
—
|
|
|
—
|
|
||
Total capital
|
|
269,171
|
|
|
15.02
|
|
|
—
|
|
|
—
|
|
||
Investar Bank:
|
|
|
|
|
|
|
|
|
||||||
Tier 1 leverage capital
|
|
222,316
|
|
|
10.77
|
|
|
103,223
|
|
|
5.00
|
|
||
Common equity tier 1 capital
|
|
222,316
|
|
|
12.43
|
|
|
116,289
|
|
|
6.50
|
|
||
Tier 1 capital
|
|
222,316
|
|
|
12.43
|
|
|
143,124
|
|
|
8.00
|
|
||
Total capital
|
|
233,111
|
|
|
13.03
|
|
|
178,906
|
|
|
10.00
|
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Commitments to extend credit:
|
|
|
|
|
||||
Loan commitments
|
|
$
|
276,101
|
|
|
$
|
242,180
|
|
Standby letters of credit
|
|
11,758
|
|
|
11,475
|
|
|
|
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)
|
|
$
|
1,034,062
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,034,062
|
|
Time Deposits(1) (2)
|
|
546,792
|
|
|
127,948
|
|
|
19,831
|
|
|
—
|
|
|
694,571
|
|
|||||
Securities sold under agreements to repurchase(1)
|
|
3,732
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,732
|
|
|||||
Federal Home Loan Bank advances(2)
|
|
89,222
|
|
|
—
|
|
|
23,500
|
|
|
55,000
|
|
|
167,722
|
|
|||||
Subordinated debt(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43,600
|
|
|
43,600
|
|
|||||
Junior subordinated debt(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,702
|
|
|
6,702
|
|
|||||
Operating lease commitment
|
|
580
|
|
|
1,171
|
|
|
1,115
|
|
|
2,036
|
|
|
4,902
|
|
|||||
Total contractual obligations
|
|
$
|
1,674,388
|
|
|
$
|
129,119
|
|
|
$
|
44,446
|
|
|
$
|
107,338
|
|
|
$
|
1,955,291
|
|
(1)
|
Excludes interest.
|
(2)
|
Excludes unamortized premiums and discounts.
|
•
|
the risk that financial stress on our borrowers will lead to loan defaults at a rate that is higher than we anticipate;
|
•
|
the risk that loans that were modified due to the pandemic and not accounted for as troubled debt restructurings, and on which we continued to accrue interest, will ultimately default, requiring us to reverse related interest income and incur losses;
|
•
|
a decline in business activity causing decreased demand for our loans and other banking services, which may reduce related income and fees;
|
•
|
further increases in our allowance for loan losses to reflect greater risks of losses;
|
•
|
decreases in income resulting from deferrals of loan payments, increases in loan modifications, and waivers or reductions in ATM, overdraft, interchange and other fees;
|
•
|
reductions in collateral values from their values when the loans were made;
|
•
|
lower market interest rates, which have an adverse impact on our variable rate loans and reduce our interest income;
|
•
|
potential impairment of goodwill;
|
•
|
increased litigation risk from customers and non-customers that approach the Company regarding receiving PPP loans and do not receive the loan they requested;
|
•
|
the risk that the SBA will not guarantee the PPP loans we originate if it determines that there is a deficiency in the manner in which any PPP loan was originated, funded, or serviced by us;
|
•
|
increased instability in our deposit base;
|
•
|
an increase in costs for additional cleaning, supplies and technology as our branches reopen;
|
•
|
increased cyber and payment fraud risk, as cybercriminals attempt to profit from the disruption, given increased online and remote activity;
|
•
|
third party disruptions, including outages at network providers and other suppliers; and
|
•
|
lack of availability of employees due to illness.
|
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)
|
|||||
January 1, 2020 to January 31, 2020
|
8,503
|
|
|
$
|
22.86
|
|
|
8,348
|
|
|
317,986
|
|
February 1, 2020 to February 29, 2020
|
29,033
|
|
|
22.45
|
|
|
28,976
|
|
|
289,010
|
|
|
March 1, 2020 to March 31, 2020
|
302,640
|
|
|
20.12
|
|
|
289,312
|
|
|
299,698
|
|
|
|
340,176
|
|
|
$
|
20.39
|
|
|
326,636
|
|
|
299,698
|
|
(1)
|
Includes 13,540 shares surrendered to cover the payroll taxes due upon the vesting of restricted stock.
|
(2)
|
On March 10, 2020, the Company announced that its board of directors authorized the repurchase of an additional 300,000 shares of the Company’s common stock under its stock repurchase plan, in addition to the 326,334 shares that were remaining as authorized for repurchase at December 31, 2019.
|
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 exhibit 2.1 to the Current Report on Form 8-K of the Company filed with the SEC on July 31, 2019 and incorporated herein by reference.
|
(2)
|
Filed as exhibit 2.1 to the Current Report on Form 8-K of the Company filed with the SEC on October 10, 2018 and incorporated herein by reference.
|
(3)
|
Filed as exhibit 2.1 to the Current Report on Form 8-K of the Company filed with the SEC on December 24, 2019 and incorporated herein by reference.
|
(4)
|
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.
|
(5)
|
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.
|
(6)
|
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.
|
(7)
|
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.
|
(8)
|
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.
|
(9)
|
Filed as exhibit 4.1 to the Current Report on Form 8-K filed with the SEC on November 14, 2019 and incorporated herein by reference.
|
(10)
|
Filed as exhibit 4.1 to the Current Report on Form 8-K filed with the SEC on December 24, 2019 and incorporated herein by reference.
|
|
|
INVESTAR HOLDING CORPORATION
|
|
|
|
Date: May 8, 2020
|
|
/s/ John J. D’Angelo
|
|
|
John J. D’Angelo
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
|
|
|
Date: May 8, 2020
|
|
/s/ Christopher L. Hufft
|
|
|
Christopher L. Hufft
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
a)
|
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;
|
b)
|
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.
|
c)
|
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
|
d)
|
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
|
a)
|
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
|
b)
|
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.
|
Date: May 8, 2020
|
|
/s/ John J. D’Angelo
|
|
|
John J. D’Angelo
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
a)
|
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;
|
b)
|
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.
|
c)
|
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
|
d)
|
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
|
a)
|
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
|
b)
|
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.
|
Date: May 8, 2020
|
|
/s/ Christopher L. Hufft
|
|
|
Christopher L. Hufft
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
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.
|
Date: May 8, 2020
|
|
/s/ John J. D’Angelo
|
|
|
John J. D’Angelo
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
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.
|
Date: May 8, 2020
|
|
/s/ Christopher L. Hufft
|
|
|
Christopher L. Hufft
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial Officer)
|