|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Kentucky
|
61-1206757
|
|
(State or other jurisdiction of incorporation organization)
|
(I.R.S. Employer Identification No.)
|
|
2883 Fifth Avenue
Huntington, West Virginia
|
25702
|
|
(Address of principal executive offices)
|
(Zip Code)
|
|
Registrant's telephone number (304) 525-1600
|
Large accelerated filer
|
Accelerated filer
|
|
Non-accelerated filer
|
Smaller reporting company
|
Emerging growth company
|
3
|
||||
43
|
||||
55
|
||||
55
|
||||
56
|
||||
56
|
||||
56
|
||||
56
|
||||
56
|
||||
56
|
||||
56
|
||||
56
|
||||
57
|
4
|
||||
5
|
||||
6
|
||||
6
|
||||
7
|
||||
8
|
(UNAUDITED)
|
||||||||
September 30,
2018
|
December 31,
2017
|
|||||||
ASSETS
|
||||||||
Cash and due from banks
|
$
|
22,048
|
$
|
40,814
|
||||
Interest bearing bank balances
|
85,568
|
37,191
|
||||||
Federal funds sold
|
7,589
|
4,658
|
||||||
Cash and cash equivalents
|
115,205
|
82,663
|
||||||
Time deposits with other banks
|
2,086
|
2,582
|
||||||
Securities available for sale
|
315,225
|
278,466
|
||||||
Loans
|
1,037,066
|
1,049,052
|
||||||
Allowance for loan losses
|
(13,483
|
)
|
(12,104
|
)
|
||||
Net loans
|
1,023,583
|
1,036,948
|
||||||
Federal Home Loan Bank stock, at cost
|
3,173
|
3,185
|
||||||
Premises and equipment, net
|
25,184
|
23,815
|
||||||
Real estate acquired through foreclosure
|
14,379
|
19,966
|
||||||
Interest receivable
|
4,109
|
4,043
|
||||||
Goodwill
|
35,371
|
35,371
|
||||||
Other intangible assets
|
2,800
|
3,375
|
||||||
Other assets
|
3,355
|
3,010
|
||||||
Total assets
|
$
|
1,544,470
|
$
|
1,493,424
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Deposits
|
||||||||
Non-interest bearing
|
$
|
365,629
|
$
|
332,588
|
||||
Time deposits, $250,000 and over
|
63,173
|
63,905
|
||||||
Other interest bearing
|
890,821
|
876,182
|
||||||
Total deposits
|
1,319,623
|
1,272,675
|
||||||
Securities sold under agreements to repurchase
|
24,728
|
23,310
|
||||||
Other borrowed funds
|
3,350
|
5,000
|
||||||
Subordinated debt
|
5,398
|
5,376
|
||||||
Interest payable
|
497
|
393
|
||||||
Other liabilities
|
3,296
|
3,315
|
||||||
Total liabilities
|
1,356,892
|
1,310,069
|
||||||
Stockholders' equity
|
||||||||
Common stock, no par value; 30,000,000 shares authorized; 13,369,600 shares issued and outstanding at September 30, 2018, and 13,345,535 shares issued and outstanding at December 31, 2017
|
110,830
|
110,445
|
||||||
Retained earnings
|
83,888
|
74,983
|
||||||
Accumulated other comprehensive income (loss)
|
(7,140
|
)
|
(2,073
|
)
|
||||
Total stockholders' equity
|
187,578
|
183,355
|
||||||
Total liabilities and stockholders' equity
|
$
|
1,544,470
|
$
|
1,493,424
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Interest income
|
||||||||||||||||
Loans, including fees
|
$
|
13,731
|
$
|
13,469
|
$
|
41,449
|
$
|
41,667
|
||||||||
Securities available for sale
|
||||||||||||||||
Taxable
|
1,745
|
1,427
|
4,787
|
4,236
|
||||||||||||
Tax-exempt
|
52
|
62
|
166
|
198
|
||||||||||||
Federal funds sold and other
|
473
|
176
|
1,151
|
515
|
||||||||||||
Total interest income
|
16,001
|
15,134
|
47,553
|
46,616
|
||||||||||||
Interest expense
|
||||||||||||||||
Deposits
|
1,355
|
954
|
3,583
|
2,854
|
||||||||||||
Repurchase agreements and other
|
10
|
7
|
25
|
21
|
||||||||||||
Other borrowings
|
37
|
68
|
125
|
234
|
||||||||||||
Subordinated debt
|
90
|
74
|
257
|
218
|
||||||||||||
Total interest expense
|
1,492
|
1,103
|
3,990
|
3,327
|
||||||||||||
Net interest income
|
14,509
|
14,031
|
43,563
|
43,289
|
||||||||||||
Provision for loan losses
|
275
|
891
|
1,890
|
2,033
|
||||||||||||
Net interest income after provision for loan losses
|
14,234
|
13,140
|
41,673
|
41,256
|
||||||||||||
Non-interest income
|
||||||||||||||||
Service charges on deposit accounts
|
1,183
|
1,136
|
3,343
|
3,201
|
||||||||||||
Electronic banking income
|
968
|
811
|
2,677
|
2,424
|
||||||||||||
Secondary market mortgage income
|
29
|
67
|
142
|
173
|
||||||||||||
Other
|
257
|
163
|
572
|
530
|
||||||||||||
2,437
|
2,177
|
6,734
|
6,328
|
|||||||||||||
Non-interest expenses
|
||||||||||||||||
Salaries and employee benefits
|
4,846
|
4,760
|
14,667
|
14,703
|
||||||||||||
Occupancy and equipment expenses
|
1,570
|
1,511
|
4,660
|
4,481
|
||||||||||||
Outside data processing
|
1,315
|
1,344
|
3,841
|
4,019
|
||||||||||||
Professional fees
|
526
|
196
|
1,261
|
721
|
||||||||||||
Taxes, other than payroll, property and income
|
217
|
189
|
669
|
589
|
||||||||||||
Write-downs, expenses, sales of other real estate owned, net
|
26
|
346
|
(335
|
)
|
1,139
|
|||||||||||
Amortization of intangibles
|
190
|
252
|
575
|
768
|
||||||||||||
FDIC insurance
|
171
|
159
|
443
|
506
|
||||||||||||
Other expenses
|
1,306
|
1,168
|
3,833
|
3,401
|
||||||||||||
10,167
|
9,925
|
29,614
|
30,327
|
|||||||||||||
Income before income taxes
|
6,504
|
5,392
|
18,793
|
17,257
|
||||||||||||
Provision for income taxes
|
1,483
|
1,925
|
4,264
|
6,207
|
||||||||||||
Net income
|
$
|
5,021
|
$
|
3,467
|
$
|
14,529
|
$
|
11,050
|
||||||||
Net income per share:
|
||||||||||||||||
Basic
|
$
|
0.38
|
$
|
0.26
|
$
|
1.09
|
$
|
0.83
|
||||||||
Diluted
|
0.37
|
0.26
|
1.08
|
0.82
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Net income
|
$
|
5,021
|
$
|
3,467
|
$
|
14,529
|
$
|
11,050
|
||||||||
Other comprehensive income (loss):
|
||||||||||||||||
Unrealized gains (losses) arising during the period
|
(1,451
|
)
|
(68
|
)
|
(6,414
|
)
|
3,658
|
|||||||||
Reclassification of realized amount
|
-
|
-
|
-
|
-
|
||||||||||||
Net change in unrealized gain (loss) on securities
|
(1,451
|
)
|
(68
|
)
|
(6,414
|
)
|
3,658
|
|||||||||
Less tax impact
|
305
|
24
|
1,347
|
(1,281
|
)
|
|||||||||||
Other comprehensive income (loss)
|
(1,146
|
)
|
(44
|
)
|
(5,067
|
)
|
2,377
|
|||||||||
Comprehensive income
|
$
|
3,875
|
$
|
3,423
|
$
|
9,462
|
$
|
13,427
|
Common
Stock
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (loss)
|
Total
|
|||||||||||||
Balances, January 1, 2018
|
$
|
110,445
|
$
|
74,983
|
$
|
(2,073
|
)
|
$
|
183,355
|
|||||||
Net income
|
-
|
14,529
|
-
|
14,529
|
||||||||||||
Other comprehensive income (loss)
|
-
|
-
|
(5,067
|
)
|
(5,067
|
)
|
||||||||||
Cash dividends paid ($0.42 per share)
|
-
|
(5,611
|
)
|
-
|
(5,611
|
)
|
||||||||||
Cash in lieu of fractional share for 5 for 4 stock split
|
-
|
(13
|
)
|
-
|
(13
|
)
|
||||||||||
Stock options exercised
|
168
|
-
|
-
|
168
|
||||||||||||
Stock based compensation expense
|
217
|
-
|
-
|
217
|
||||||||||||
Balances, September 30, 2018
|
$
|
110,830
|
$
|
83,888
|
$
|
(7,140
|
)
|
$
|
187,578
|
2018
|
2017
|
|||||||
Cash flows from operating activities
|
||||||||
Net income
|
$
|
14,529
|
$
|
11,050
|
||||
Adjustments to reconcile net income to net cash from operating activities
|
||||||||
Depreciation
|
1,274
|
1,303
|
||||||
Provision for loan losses
|
1,890
|
2,033
|
||||||
Amortization (accretion), net
|
984
|
1,166
|
||||||
Writedowns (gains on the sale) of other real estate owned, net
|
(909
|
)
|
434
|
|||||
Stock compensation expense
|
217
|
194
|
||||||
Changes in:
|
||||||||
Interest receivable
|
(66
|
)
|
(198
|
)
|
||||
Other assets
|
1,002
|
(24
|
)
|
|||||
Interest payable
|
104
|
(6
|
)
|
|||||
Other liabilities
|
(19
|
)
|
(1,045
|
)
|
||||
Net cash from operating activities
|
19,006
|
14,907
|
||||||
Cash flows from investing activities
|
||||||||
Net change on time deposits with other banks
|
496
|
(250
|
)
|
|||||
Purchases of securities available for sale
|
(92,644
|
)
|
(49,210
|
)
|
||||
Proceeds from maturities and calls of securities available for sale
|
48,355
|
50,787
|
||||||
Redemption of FHLB stock
|
12
|
15
|
||||||
Net change in loans
|
11,156
|
(30,865
|
)
|
|||||
Purchases of premises and equipment, net
|
(2,643
|
)
|
(654
|
)
|
||||
Proceeds from sales of other real estate acquired through foreclosure
|
7,562
|
1,827
|
||||||
Net cash from (used in) investing activities
|
(27,706
|
)
|
(28,350
|
)
|
||||
Cash flows from financing activities
|
||||||||
Net change in deposits
|
46,930
|
(10,020
|
)
|
|||||
Net change in agreements to repurchase securities
|
1,418
|
1,296
|
||||||
Repayment of other borrowed funds
|
(1,650
|
)
|
(2,859
|
)
|
||||
Proceeds from stock option exercises
|
168
|
248
|
||||||
Cash in lieu of fractional shares
|
(13
|
)
|
-
|
|||||
Common stock dividends paid
|
(5,611
|
)
|
(4,796
|
)
|
||||
Net cash from (used in) financing activities
|
41,242
|
(16,131
|
)
|
|||||
Net change in cash and cash equivalents
|
32,542
|
(29,574
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
82,663
|
104,718
|
||||||
Cash and cash equivalents at end of period
|
$
|
115,205
|
$
|
75,144
|
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid during period for interest
|
$
|
3,886
|
$
|
3,333
|
||||
Cash paid during period for income taxes
|
2,807
|
6,395
|
||||||
Loans transferred to real estate acquired through foreclosure
|
1,066
|
983
|
||||||
Premises transferred to other real estate owned
|
-
|
71
|
September 30, 2018
|
||||||||||||||||
Year | Total | Net Income | ||||||||||||||
Subsidiary
|
Location
|
Acquired
|
Assets
|
Qtr
|
YTD
|
|||||||||||
Citizens Deposit Bank & Trust
|
Vanceburg, Kentucky
|
1991
|
$
|
437,154
|
$
|
1,470
|
$
|
4,154
|
||||||||
Premier Bank, Inc.
|
Huntington, West Virginia
|
1998
|
1,100,317
|
4,162
|
12,240
|
|||||||||||
Parent and Intercompany Eliminations
|
6,999
|
(611
|
)
|
(1,865
|
)
|
|||||||||||
Consolidated Total
|
$
|
1,544,470
|
$
|
5,021
|
$
|
14,529
|
2018
|
Amortized Cost
|
Unrealized Gains
|
Unrealized Losses
|
Fair Value
|
||||||||||||
Available for sale
|
||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||
U. S. sponsored agency MBS - residential
|
$
|
229,307
|
$
|
42
|
$
|
(7,192
|
)
|
$
|
222,157
|
|||||||
U. S. sponsored agency CMO's - residential
|
72,971
|
13
|
(1,604
|
)
|
71,380
|
|||||||||||
Total mortgage-backed securities of government sponsored agencies
|
302,278
|
55
|
(8,796
|
)
|
293,537
|
|||||||||||
U. S. government sponsored agency securities
|
13,246
|
-
|
(244
|
)
|
13,002
|
|||||||||||
Obligations of states and political subdivisions
|
8,739
|
23
|
(76
|
)
|
8,686
|
|||||||||||
Total available for sale
|
$
|
324,263
|
$
|
78
|
$
|
(9,116
|
)
|
$
|
315,225
|
2017
|
Amortized Cost
|
Unrealized Gains
|
Unrealized Losses
|
Fair Value
|
||||||||||||
Available for sale
|
||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||
U. S. sponsored agency MBS - residential
|
$
|
198,631
|
$
|
175
|
$
|
(2,216
|
)
|
$
|
196,590
|
|||||||
U. S. sponsored agency CMO's - residential
|
51,548
|
241
|
(681
|
)
|
51,108
|
|||||||||||
Total mortgage-backed securities of government sponsored agencies
|
250,179
|
416
|
(2,897
|
)
|
247,698
|
|||||||||||
U. S. government sponsored agency securities
|
19,312
|
1
|
(179
|
)
|
19,134
|
|||||||||||
Obligations of states and political subdivisions
|
11,599
|
61
|
(26
|
)
|
11,634
|
|||||||||||
Total available for sale
|
$
|
281,090
|
$
|
478
|
$
|
(3,102
|
)
|
$
|
278,466
|
Amortized
Cost
|
Fair
Value
|
|||||||
Available for sale
|
||||||||
Due in one year or less
|
$
|
8,669
|
$
|
8,644
|
||||
Due after one year through five years
|
10,820
|
10,658
|
||||||
Due after five years through ten years
|
2,496
|
2,386
|
||||||
Mortgage-backed securities of government sponsored agencies
|
302,278
|
293,537
|
||||||
Total available for sale
|
$
|
324,263
|
$
|
315,225
|
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Description of Securities
|
Fair Value
|
Unrealized Loss
|
Fair Value
|
Unrealized Loss
|
Fair Value
|
Unrealized Loss
|
||||||||||||||||||
U.S government sponsored agency securities
|
$
|
-
|
$
|
-
|
$
|
13,001
|
$
|
(244
|
)
|
$
|
13,001
|
$
|
(244
|
)
|
||||||||||
U.S government sponsored agency MBS – residential
|
110,405
|
(2,186
|
)
|
110,867
|
(5,006
|
)
|
221,272
|
(7,192
|
)
|
|||||||||||||||
U.S government sponsored agency CMO – residential
|
51,733
|
(597
|
)
|
17,710
|
(1,007
|
)
|
69,443
|
(1,604
|
)
|
|||||||||||||||
Obligations of states and political subdivisions
|
2,920
|
(45
|
)
|
1,456
|
(31
|
)
|
4,376
|
(76
|
)
|
|||||||||||||||
Total temporarily impaired
|
$
|
165,058
|
$
|
(2,828
|
)
|
$
|
143,034
|
$
|
(6,288
|
)
|
$
|
308,092
|
$
|
(9,116
|
)
|
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Description of Securities
|
Fair Value
|
Unrealized Loss
|
Fair Value
|
Unrealized Loss
|
Fair Value
|
Unrealized Loss
|
||||||||||||||||||
U.S government sponsored agency securities
|
$
|
6,780
|
$
|
(41
|
)
|
$
|
10,335
|
$
|
(138
|
)
|
$
|
17,115
|
$
|
(179
|
)
|
|||||||||
U.S government sponsored agency MBS – residential
|
134,211
|
(1,076
|
)
|
47,682
|
(1,140
|
)
|
181,893
|
(2,216
|
)
|
|||||||||||||||
U.S government sponsored agency CMO's – residential
|
8,306
|
(64
|
)
|
17,868
|
(617
|
)
|
26,174
|
(681
|
)
|
|||||||||||||||
Obligations of states and political subdivisions
|
3,512
|
(20
|
)
|
474
|
(6
|
)
|
3,986
|
(26
|
)
|
|||||||||||||||
Total temporarily impaired
|
$
|
152,809
|
$
|
(1,201
|
)
|
$
|
76,359
|
$
|
(1,901
|
)
|
$
|
229,168
|
$
|
(3,102
|
)
|
2018
|
2017
|
|||||||
Residential real estate
|
$
|
340,478
|
$
|
338,829
|
||||
Multifamily real estate
|
54,602
|
62,151
|
||||||
Commercial real estate:
|
||||||||
Owner occupied
|
135,884
|
136,048
|
||||||
Non-owner occupied
|
226,710
|
230,702
|
||||||
Commercial and industrial
|
85,585
|
78,259
|
||||||
Consumer
|
28,129
|
28,293
|
||||||
Construction and land
|
132,141
|
139,012
|
||||||
All other
|
33,537
|
35,758
|
||||||
Total |
$
|
1,037,066
|
$
|
1,049,052
|
Loan Class
|
Balance
Dec 31, 2017
|
Provision (credit) for loan losses
|
Loans
charged-off
|
Recoveries
|
Balance
Sept 30, 2018
|
|||||||||||||||
Residential real estate
|
$
|
2,986
|
$
|
(509
|
)
|
$
|
(229
|
)
|
$
|
30
|
$
|
2,278
|
||||||||
Multifamily real estate
|
978
|
(504
|
)
|
(11
|
)
|
-
|
463
|
|||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
1,653
|
174
|
(21
|
)
|
1
|
1,807
|
||||||||||||||
Non-owner occupied
|
2,313
|
500
|
(16
|
)
|
2
|
2,799
|
||||||||||||||
Commercial and industrial
|
1,101
|
1,108
|
(525
|
)
|
40
|
1,724
|
||||||||||||||
Consumer
|
328
|
90
|
(105
|
)
|
50
|
363
|
||||||||||||||
Construction and land
|
2,408
|
651
|
(20
|
)
|
400
|
3,439
|
||||||||||||||
All other
|
337
|
380
|
(203
|
)
|
96
|
610
|
||||||||||||||
Total
|
$
|
12,104
|
$
|
1,890
|
$
|
(1,130
|
)
|
$
|
619
|
$
|
13,483
|
Loan Class
|
Balance
Dec 31, 2016
|
Provision (credit) for loan losses
|
Loans
charged-off
|
Recoveries
|
Balance
Sept 30, 2017
|
|||||||||||||||
Residential real estate
|
$
|
2,948
|
$
|
363
|
$
|
(362
|
)
|
$
|
52
|
$
|
3,001
|
|||||||||
Multifamily real estate
|
785
|
451
|
-
|
-
|
1,236
|
|||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
1,543
|
(161
|
)
|
(7
|
)
|
242
|
1,617
|
|||||||||||||
Non-owner occupied
|
2,350
|
265
|
(8
|
)
|
-
|
2,607
|
||||||||||||||
Commercial and industrial
|
1,140
|
3
|
(138
|
)
|
95
|
1,100
|
||||||||||||||
Consumer
|
347
|
148
|
(214
|
)
|
86
|
367
|
||||||||||||||
Construction and land
|
1,397
|
683
|
(127
|
)
|
10
|
1,963
|
||||||||||||||
All other
|
326
|
281
|
(246
|
)
|
107
|
468
|
||||||||||||||
Total
|
$
|
10,836
|
$
|
2,033
|
$
|
(1,102
|
)
|
$
|
592
|
$
|
12,359
|
Loan Class
|
Balance
June 30, 2018
|
Provision (credit) for loan losses
|
Loans
charged-off
|
Recoveries
|
Balance
Sept 30, 2018
|
|||||||||||||||
Residential real estate
|
$
|
2,254
|
$
|
100
|
$
|
(81
|
)
|
$
|
5
|
$
|
2,278
|
|||||||||
Multifamily real estate
|
557
|
(94
|
)
|
-
|
-
|
463
|
||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
1,917
|
(92
|
)
|
(18
|
)
|
-
|
1,807
|
|||||||||||||
Non-owner occupied
|
2,437
|
360
|
-
|
2
|
2,799
|
|||||||||||||||
Commercial and industrial
|
1,599
|
132
|
(21
|
)
|
14
|
1,724
|
||||||||||||||
Consumer
|
354
|
39
|
(42
|
)
|
12
|
363
|
||||||||||||||
Construction and land
|
3,253
|
(213
|
)
|
(1
|
)
|
400
|
3,439
|
|||||||||||||
All other
|
611
|
43
|
(73
|
)
|
29
|
610
|
||||||||||||||
Total
|
$
|
12,982
|
$
|
275
|
$
|
(236
|
)
|
$
|
462
|
$
|
13,483
|
Loan Class
|
Balance
June 30, 2017
|
Provision (credit) for loan losses
|
Loans
charged-off
|
Recoveries
|
Balance
Sept 30, 2017
|
|||||||||||||||
Residential real estate
|
$
|
2,973
|
$
|
170
|
$
|
(163
|
)
|
$
|
21
|
$
|
3,001
|
|||||||||
Multifamily real estate
|
1,337
|
(101
|
)
|
-
|
-
|
1,236
|
||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
1,618
|
5
|
(7
|
)
|
1
|
1,617
|
||||||||||||||
Non-owner occupied
|
2,334
|
276
|
(3
|
)
|
-
|
2,607
|
||||||||||||||
Commercial and industrial
|
1,093
|
(6
|
)
|
(4
|
)
|
17
|
1,100
|
|||||||||||||
Consumer
|
373
|
10
|
(49
|
)
|
33
|
367
|
||||||||||||||
Construction and land
|
1,675
|
292
|
(4
|
)
|
-
|
1,963
|
||||||||||||||
All other
|
292
|
245
|
(106
|
)
|
37
|
468
|
||||||||||||||
Total
|
$
|
11,695
|
$
|
891
|
$
|
(336
|
)
|
$
|
109
|
$
|
12,359
|
2018
|
2017
|
|||||||
Residential real estate
|
$
|
1,099
|
$
|
1,321
|
||||
Commercial real estate
|
||||||||
Owner occupied
|
1,385
|
1,508
|
||||||
Commercial and industrial
|
3
|
211
|
||||||
Construction and land
|
1,274
|
1,450
|
||||||
All other
|
284
|
286
|
||||||
Total carrying amount
|
$
|
4,045
|
$
|
4,776
|
||||
Contractual principal balance
|
$
|
5,646
|
$
|
6,728
|
||||
Carrying amount, net of allowance
|
$
|
4,045
|
$
|
4,676
|
2018
|
2017
|
|||||||
Balance at January 1
|
$
|
754
|
$
|
1,208
|
||||
New loans purchased
|
-
|
-
|
||||||
Accretion of income
|
(141
|
)
|
(201
|
)
|
||||
Loans placed on non-accrual
|
(52
|
)
|
-
|
|||||
Income recognized upon full repayment
|
(38
|
)
|
(197
|
)
|
||||
Reclassifications from non-accretable difference
|
-
|
-
|
||||||
Disposals
|
-
|
-
|
||||||
Balance at September 30
|
$
|
523
|
$
|
810
|
September 30, 2018
|
Principal Owed on Non-accrual Loans
|
Recorded Investment in Non-accrual Loans
|
Loans Past Due Over 90 Days, still accruing
|
|||||||||
Residential real estate
|
$
|
4,015
|
$
|
3,265
|
$
|
917
|
||||||
Multifamily real estate
|
2,118
|
2,012
|
-
|
|||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
3,114
|
3,063
|
-
|
|||||||||
Non-owner occupied
|
4,373
|
4,285
|
75
|
|||||||||
Commercial and industrial
|
1,043
|
481
|
-
|
|||||||||
Consumer
|
373
|
342
|
-
|
|||||||||
Construction and land
|
4,842
|
4,669
|
-
|
|||||||||
All other
|
176
|
176
|
-
|
|||||||||
Total
|
$
|
20,054
|
$
|
18,293
|
$
|
992
|
December 31, 2017
|
Principal Owed on Non-accrual Loans
|
Recorded Investment in Non-accrual Loans
|
Loans Past Due Over 90 Days, still accruing
|
|||||||||
Residential real estate
|
$
|
2,944
|
$
|
2,422
|
$
|
869
|
||||||
Multifamily real estate
|
2,128
|
2,128
|
334
|
|||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
2,623
|
2,483
|
134
|
|||||||||
Non-owner occupied
|
1,862
|
1,755
|
85
|
|||||||||
Commercial and industrial
|
1,313
|
544
|
1,139
|
|||||||||
Consumer
|
268
|
241
|
-
|
|||||||||
Construction and land
|
5,824
|
5,673
|
830
|
|||||||||
Total
|
$
|
16,962
|
$
|
15,246
|
$
|
3,391
|
Loan Class
|
Total Loans
|
30-89 Days
Past Due
|
Greater than 90 days past due
|
Total
Past Due
|
Loans Not
Past Due
|
|||||||||||||||
Residential real estate
|
$
|
340,478
|
$
|
5,366
|
$
|
1,697
|
$
|
7,063
|
$
|
333,415
|
||||||||||
Multifamily real estate
|
54,602
|
-
|
1,165
|
1,165
|
53,437
|
|||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
135,884
|
1,719
|
1,343
|
3,062
|
132,822
|
|||||||||||||||
Non-owner occupied
|
226,710
|
281
|
2,889
|
3,170
|
223,540
|
|||||||||||||||
Commercial and industrial
|
85,585
|
328
|
237
|
565
|
85,020
|
|||||||||||||||
Consumer
|
28,129
|
198
|
163
|
361
|
27,768
|
|||||||||||||||
Construction and land
|
132,141
|
1,869
|
4,657
|
6,526
|
125,615
|
|||||||||||||||
All other
|
33,537
|
9
|
176
|
185
|
33,352
|
|||||||||||||||
Total
|
$
|
1,037,066
|
$
|
9,770
|
$
|
12,327
|
$
|
22,097
|
$
|
1,014,969
|
Loan Class
|
Total Loans
|
30-89 Days
Past Due
|
Greater than 90 days past due
|
Total
Past Due
|
Loans Not
Past Due
|
|||||||||||||||
Residential real estate
|
$
|
338,829
|
$
|
5,242
|
$
|
1,835
|
$
|
7,077
|
$
|
331,752
|
||||||||||
Multifamily real estate
|
62,151
|
-
|
334
|
334
|
61,817
|
|||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
136,048
|
311
|
1,784
|
2,095
|
133,953
|
|||||||||||||||
Non-owner occupied
|
230,702
|
12
|
225
|
237
|
230,465
|
|||||||||||||||
Commercial and industrial
|
78,259
|
123
|
1,611
|
1,734
|
76,525
|
|||||||||||||||
Consumer
|
28,293
|
492
|
87
|
579
|
27,714
|
|||||||||||||||
Construction and land
|
139,012
|
144
|
2,508
|
2,652
|
136,360
|
|||||||||||||||
All other
|
35,758
|
-
|
-
|
-
|
35,758
|
|||||||||||||||
Total
|
$
|
1,049,052
|
$
|
6,324
|
$
|
8,384
|
$
|
14,708
|
$
|
1,034,344
|
Allowance for Loan Losses
|
Loan Balances
|
|||||||||||||||||||||||||||||||
Loan Class
|
Individually Evaluated for Impairment
|
Collectively Evaluated for Impairment
|
Acquired with Deteriorated Credit Quality
|
Total
|
Individually Evaluated for Impairment
|
Collectively Evaluated for Impairment
|
Acquired with Deteriorated Credit Quality
|
Total
|
||||||||||||||||||||||||
Residential real estate
|
$
|
-
|
$
|
2,278
|
$
|
-
|
$
|
2,278
|
$
|
298
|
$
|
339,081
|
$
|
1,099
|
$
|
340,478
|
||||||||||||||||
Multifamily real estate
|
6
|
457
|
-
|
463
|
1,906
|
52,696
|
-
|
54,602
|
||||||||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||||||
Owner occupied
|
385
|
1,422
|
-
|
1,807
|
3,029
|
131,470
|
1,385
|
135,884
|
||||||||||||||||||||||||
Non-owner occupied
|
256
|
2,543
|
-
|
2,799
|
7,415
|
219,295
|
-
|
226,710
|
||||||||||||||||||||||||
Commercial and industrial
|
111
|
1,613
|
-
|
1,724
|
525
|
85,057
|
3
|
85,585
|
||||||||||||||||||||||||
Consumer
|
-
|
363
|
-
|
363
|
-
|
28,129
|
-
|
28,129
|
||||||||||||||||||||||||
Construction and land
|
1,195
|
2,244
|
3,439
|
4,423
|
126,444
|
1,274
|
132,141
|
|||||||||||||||||||||||||
All other
|
-
|
610
|
-
|
610
|
-
|
33,253
|
284
|
33,537
|
||||||||||||||||||||||||
Total
|
$
|
1,953
|
$
|
11,530
|
$
|
-
|
$
|
13,483
|
$
|
17,596
|
$
|
1,015,425
|
$
|
4,045
|
$
|
1,037,066
|
Allowance for Loan Losses
|
Loan Balances
|
|||||||||||||||||||||||||||||||
Loan Class
|
Individually Evaluated for Impairment
|
Collectively Evaluated for Impairment
|
Acquired with Deteriorated Credit Quality
|
Total
|
Individually Evaluated for Impairment
|
Collectively Evaluated for Impairment
|
Acquired with Deteriorated Credit Quality
|
Total
|
||||||||||||||||||||||||
Residential real estate
|
$
|
-
|
$
|
2,986
|
$
|
-
|
$
|
2,986
|
$
|
308
|
$
|
337,200
|
$
|
1,321
|
$
|
338,829
|
||||||||||||||||
Multifamily real estate
|
218
|
760
|
-
|
978
|
2,462
|
59,689
|
-
|
62,151
|
||||||||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||||||
Owner occupied
|
307
|
1,346
|
-
|
1,653
|
3,314
|
131,226
|
1,508
|
136,048
|
||||||||||||||||||||||||
Non-owner occupied
|
88
|
2,225
|
-
|
2,313
|
11,578
|
219,124
|
-
|
230,702
|
||||||||||||||||||||||||
Commercial and industrial
|
104
|
897
|
100
|
1,101
|
1,304
|
76,744
|
211
|
78,259
|
||||||||||||||||||||||||
Consumer
|
-
|
328
|
-
|
328
|
-
|
28,293
|
-
|
28,293
|
||||||||||||||||||||||||
Construction and land
|
685
|
1,723
|
-
|
2,408
|
5,672
|
131,890
|
1,450
|
139,012
|
||||||||||||||||||||||||
All other
|
-
|
337
|
-
|
337
|
293
|
35,179
|
286
|
35,758
|
||||||||||||||||||||||||
Total
|
$
|
1,402
|
$
|
10,602
|
$
|
100
|
$
|
12,104
|
$
|
24,931
|
$
|
1,019,345
|
$
|
4,776
|
$
|
1,049,052
|
Unpaid Principal Balance
|
Recorded Investment
|
Allowance for Loan Losses Allocated
|
||||||||||
With no related allowance recorded:
|
||||||||||||
Residential real estate
|
$
|
430
|
$
|
298
|
$
|
-
|
||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
2,184
|
2,175
|
-
|
|||||||||
Non-owner occupied
|
4,022
|
4,022
|
-
|
|||||||||
Commercial and industrial
|
801
|
270
|
-
|
|||||||||
Construction and land
|
578
|
578
|
-
|
|||||||||
8,015
|
7,343
|
-
|
||||||||||
With an allowance recorded:
|
||||||||||||
Multifamily real estate
|
2,012
|
1,906
|
6
|
|||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
887
|
854
|
385
|
|||||||||
Non-owner occupied
|
3,474
|
3,393
|
256
|
|||||||||
Commercial and industrial
|
263
|
255
|
111
|
|||||||||
Construction and land
|
4,017
|
3,845
|
1,195
|
|||||||||
10,653
|
10,253
|
1,953
|
||||||||||
Total
|
$
|
18,668
|
$
|
17,596
|
$
|
1,953
|
Unpaid Principal Balance
|
Recorded Investment
|
Allowance for Loan Losses Allocated
|
||||||||||
With no related allowance recorded:
|
||||||||||||
Residential real estate
|
$
|
446
|
$
|
308
|
$
|
-
|
||||||
Multifamily real estate
|
334
|
334
|
-
|
|||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
2,451
|
2,439
|
-
|
|||||||||
Non-owner occupied
|
9,602
|
9,506
|
-
|
|||||||||
Commercial and industrial
|
1,719
|
1,188
|
-
|
|||||||||
Construction and land
|
1,798
|
1,678
|
-
|
|||||||||
All other
|
293
|
293
|
-
|
|||||||||
16,643
|
15,746
|
-
|
||||||||||
With an allowance recorded:
|
||||||||||||
Multifamily real estate
|
$
|
2,128
|
$
|
2,128
|
$
|
218
|
||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
895
|
875
|
307
|
|||||||||
Non-owner occupied
|
2,072
|
2,072
|
88
|
|||||||||
Commercial and industrial
|
466
|
315
|
204
|
|||||||||
Construction and land
|
4,024
|
3,994
|
685
|
|||||||||
9,585
|
9,384
|
1,502
|
||||||||||
Total
|
$
|
26,228
|
$
|
25,130
|
$
|
1,502
|
Nine months ended Sept 30, 2018
|
Nine months ended Sept 30, 2017
|
|||||||||||||||||||||||
Loan Class
|
Average Recorded Investment
|
Interest Income Recognized
|
Cash Basis Interest Recognized
|
Average Recorded Investment
|
Interest Income Recognized
|
Cash Basis Interest Recognized
|
||||||||||||||||||
Residential real estate
|
$
|
301
|
$
|
-
|
$
|
-
|
$
|
339
|
$
|
1
|
$
|
1
|
||||||||||||
Multifamily real estate
|
2,192
|
11
|
11
|
13,605
|
196
|
181
|
||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||
Owner occupied
|
3,163
|
54
|
54
|
3,340
|
49
|
49
|
||||||||||||||||||
Non-owner occupied
|
9,005
|
327
|
327
|
2,955
|
124
|
124
|
||||||||||||||||||
Commercial and industrial
|
990
|
21
|
21
|
1,474
|
114
|
114
|
||||||||||||||||||
Consumer
|
-
|
-
|
-
|
5
|
-
|
-
|
||||||||||||||||||
Construction and land
|
4,633
|
12
|
12
|
8,337
|
328
|
327
|
||||||||||||||||||
All other
|
216
|
10
|
10
|
304
|
14
|
14
|
||||||||||||||||||
Total
|
$
|
20,500
|
$
|
435
|
$
|
435
|
$
|
30,359
|
$
|
826
|
$
|
810
|
Three months ended Sept 30, 2018
|
Three months ended Sept 30, 2017
|
|||||||||||||||||||||||
Loan Class
|
Average Recorded Investment
|
Interest Income Recognized
|
Cash Basis Interest Recognized
|
Average Recorded Investment
|
Interest Income Recognized
|
Cash Basis Interest Recognized
|
||||||||||||||||||
Residential real estate
|
$
|
299
|
$
|
-
|
$
|
-
|
$
|
323
|
$
|
-
|
$
|
-
|
||||||||||||
Multifamily real estate
|
1,939
|
-
|
-
|
13,590
|
66
|
60
|
||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||
Owner occupied
|
3,041
|
3
|
3
|
3,910
|
27
|
27
|
||||||||||||||||||
Non-owner occupied
|
7,489
|
86
|
86
|
3,749
|
63
|
63
|
||||||||||||||||||
Commercial and industrial
|
532
|
5
|
5
|
1,390
|
13
|
13
|
||||||||||||||||||
Consumer
|
-
|
-
|
-
|
9
|
-
|
-
|
||||||||||||||||||
Construction and land
|
4,467
|
9
|
9
|
6,884
|
48
|
48
|
||||||||||||||||||
All other
|
142
|
6
|
6
|
299
|
5
|
5
|
||||||||||||||||||
Total
|
$
|
17,909
|
$
|
109
|
$
|
109
|
$
|
30,154
|
$
|
222
|
$
|
216
|
September 30, 2018
|
TDR's on
Non-accrual
|
Other TDR's
|
Total TDR's
|
|||||||||
Residential real estate
|
$
|
351
|
$
|
100
|
$
|
451
|
||||||
Multifamily real estate
|
1,906
|
-
|
1,906
|
|||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
1,949
|
226
|
2,175
|
|||||||||
Non-owner occupied
|
-
|
5,981
|
5,981
|
|||||||||
Commercial and industrial
|
191
|
270
|
461
|
|||||||||
Construction and land
|
3,846
|
-
|
3,846
|
|||||||||
Total
|
$
|
8,243
|
$
|
6,577
|
$
|
14,820
|
December 31, 2017
|
TDR's on
Non-accrual
|
Other TDR's
|
Total TDR's
|
|||||||||
Residential real estate
|
$
|
393
|
$
|
107
|
$
|
500
|
||||||
Multifamily real estate
|
2,128
|
-
|
2,128
|
|||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
601
|
1,783
|
2,384
|
|||||||||
Non-owner occupied
|
-
|
9,904
|
9,904
|
|||||||||
Commercial and industrial
|
56
|
497
|
553
|
|||||||||
Construction and land
|
3,994
|
-
|
3,994
|
|||||||||
All other
|
-
|
293
|
293
|
|||||||||
Total
|
$
|
7,172
|
$
|
12,584
|
$
|
19,756
|
Three months ended Sept 30, 2017
|
Nine months ended Sept 30, 2017
|
|||||||||||||||||||||||
Loan Class
|
Number of Loans
|
Pre-Modification Outstanding Recorded Investment
|
Post-Modification Outstanding Recorded Investment
|
Number of Loans
|
Pre-Modification Outstanding Recorded Investment
|
Post-Modification Outstanding Recorded Investment
|
||||||||||||||||||
Commercial real estate
|
||||||||||||||||||||||||
Owner occupied
|
-
|
$
|
-
|
$
|
-
|
2
|
$
|
1,525
|
$
|
1,525
|
||||||||||||||
Non owner occupied
|
2
|
3,875
|
3,875
|
2
|
3,875
|
3,875
|
||||||||||||||||||
Commercial & industrial
|
-
|
-
|
-
|
1
|
191
|
191
|
||||||||||||||||||
Total
|
2
|
$
|
3,875
|
$
|
3,875
|
5
|
$
|
5,591
|
$
|
5,591
|
Loan Class
|
Pass
|
Special Mention
|
Substandard
|
Doubtful
|
Total Loans
|
|||||||||||||||
Residential real estate
|
$
|
330,283
|
$
|
1,107
|
$
|
9,088
|
$
|
-
|
$
|
340,478
|
||||||||||
Multifamily real estate
|
47,634
|
4,956
|
2,012
|
-
|
54,602
|
|||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
124,609
|
4,950
|
6,325
|
-
|
135,884
|
|||||||||||||||
Non-owner occupied
|
209,611
|
6,223
|
10,876
|
-
|
226,710
|
|||||||||||||||
Commercial and industrial
|
78,626
|
4,224
|
2,735
|
-
|
85,585
|
|||||||||||||||
Consumer
|
27,649
|
-
|
480
|
-
|
28,129
|
|||||||||||||||
Construction and land
|
106,328
|
20,441
|
5,372
|
-
|
132,141
|
|||||||||||||||
All other
|
32,343
|
440
|
754
|
-
|
33,537
|
|||||||||||||||
Total
|
$
|
957,083
|
$
|
42,341
|
$
|
37,642
|
$
|
-
|
$
|
1,037,066
|
Loan Class
|
Pass
|
Special Mention
|
Substandard
|
Doubtful
|
Total Loans
|
|||||||||||||||
Residential real estate
|
$
|
327,185
|
$
|
667
|
$
|
10,976
|
$
|
1
|
$
|
338,829
|
||||||||||
Multifamily real estate
|
55,084
|
4,605
|
2,462
|
-
|
62,151
|
|||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
124,244
|
4,937
|
6,867
|
-
|
136,048
|
|||||||||||||||
Non-owner occupied
|
216,079
|
2,428
|
12,195
|
-
|
230,702
|
|||||||||||||||
Commercial and industrial
|
70,078
|
5,851
|
2,330
|
-
|
78,259
|
|||||||||||||||
Consumer
|
27,889
|
-
|
404
|
-
|
28,293
|
|||||||||||||||
Construction and land
|
126,323
|
5,460
|
7,229
|
139,012
|
||||||||||||||||
All other
|
34,468
|
795
|
495
|
-
|
35,758
|
|||||||||||||||
Total
|
$
|
981,350
|
$
|
24,743
|
$
|
42,958
|
$
|
1
|
$
|
1,049,052
|
September 30, 2018
|
December 31, 2017
|
Regulatory
Minimum
Requirements
|
To Be Considered
Well Capitalized
|
|||||||||||||
Common Equity Tier 1 Capital (to Risk-Weighted Assets)
|
14.9
|
%
|
13.9
|
%
|
4.5
|
%
|
6.5
|
%
|
||||||||
Tier 1 Capital (to Risk-Weighted Assets)
|
15.4
|
%
|
14.4
|
%
|
6.0
|
%
|
8.0
|
%
|
||||||||
Total Capital (to Risk-Weighted Assets)
|
16.7
|
%
|
15.6
|
%
|
8.0
|
%
|
10.0
|
%
|
||||||||
Tier 1 Capital (to Average Assets)
|
11.1
|
%
|
10.7
|
%
|
4.0
|
%
|
5.0
|
%
|
Three Months Ended
Sept 30,
|
Nine Months Ended
Sept 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Basic earnings per share
|
||||||||||||||||
Income available to common stockholders
|
$
|
5,021
|
$
|
3,467
|
$
|
14,529
|
$
|
11,050
|
||||||||
Weighted average common shares outstanding
|
13,368,782
|
13,326,446
|
13,356,998
|
13,316,993.
|
||||||||||||
Earnings per share
|
$
|
0.38
|
$
|
0.26
|
$
|
1.09
|
$
|
0.83
|
||||||||
Diluted earnings per share
|
||||||||||||||||
Income available to common stockholders
|
$
|
5,021
|
$
|
3,467
|
$
|
14,529
|
$
|
11,050
|
||||||||
Weighted average common shares outstanding
|
13,368,782
|
13,326,446
|
13,356,998
|
13,316,993
|
||||||||||||
Add dilutive effects of potential additional common stock
|
123,624
|
97,243
|
102,578
|
100,522
|
||||||||||||
Weighted average common and dilutive potential common shares outstanding
|
13,492,406
|
13,423,689
|
13,459,576
|
13,417,515
|
||||||||||||
Earnings per share assuming dilution
|
$
|
0.37
|
$
|
0.26
|
$
|
1.08
|
$
|
0.82
|
Fair Value Measurements at September 30, 2018 Using
|
||||||||||||||||||||
Carrying
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
Financial assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
107,616
|
$
|
107,616
|
$
|
-
|
$
|
-
|
$
|
107,616
|
||||||||||
Time deposits with other banks
|
2,086
|
-
|
2,075
|
-
|
2,075
|
|||||||||||||||
Federal funds sold
|
7,589
|
7,589
|
-
|
-
|
7,589
|
|||||||||||||||
Securities available for sale
|
315,225
|
-
|
315,225
|
-
|
315,225
|
|||||||||||||||
Loans, net
|
1,023,583
|
-
|
-
|
1,012,036
|
1,012,036
|
|||||||||||||||
Federal Home Loan Bank stock
|
3,173
|
n/a
|
n/a
|
n/a
|
n/a
|
|||||||||||||||
Interest receivable
|
4,109
|
-
|
858
|
3,251
|
4,109
|
|||||||||||||||
Financial liabilities
|
||||||||||||||||||||
Deposits
|
$
|
(1,319,623
|
)
|
$
|
(979,382
|
)
|
$
|
(333,508
|
)
|
$
|
-
|
$
|
(1,312,890
|
)
|
||||||
Securities sold under agreements to repurchase
|
(24,728
|
)
|
-
|
(24,728
|
)
|
-
|
(24,728
|
)
|
||||||||||||
Other borrowed funds
|
(3,350
|
)
|
-
|
(3,301
|
)
|
-
|
(3,301
|
)
|
||||||||||||
Subordinated debt
|
(5,398
|
)
|
-
|
(5,482
|
)
|
-
|
(5,482
|
)
|
||||||||||||
Interest payable
|
(497
|
)
|
(14
|
)
|
(483
|
)
|
-
|
(497
|
)
|
Fair Value Measurements at December 31, 2017 Using
|
||||||||||||||||||||
Carrying
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
Financial assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
78,005
|
$
|
78,005
|
$
|
-
|
$
|
-
|
$
|
78,005
|
||||||||||
Time deposits with other banks
|
2,582
|
-
|
2,581
|
-
|
2,581
|
|||||||||||||||
Federal funds sold
|
4,658
|
4,658
|
-
|
-
|
4,658
|
|||||||||||||||
Securities available for sale
|
278,466
|
-
|
278,466
|
-
|
278,466
|
|||||||||||||||
Loans, net
|
1,036,948
|
-
|
-
|
1,016,723
|
1,016,723
|
|||||||||||||||
Federal Home Loan Bank stock
|
3,185
|
n/a
|
n/a
|
n/a
|
n/a
|
|||||||||||||||
Interest receivable
|
4,043
|
-
|
700
|
3,343
|
4,043
|
|||||||||||||||
Financial liabilities
|
||||||||||||||||||||
Deposits
|
$
|
(1,272,675
|
)
|
$
|
(929,202
|
)
|
$
|
(338,291
|
)
|
$
|
-
|
$
|
(1,267,493
|
)
|
||||||
Securities sold under agreements to repurchase
|
(23,310
|
)
|
-
|
(23,310
|
)
|
-
|
(23,310
|
)
|
||||||||||||
Other borrowed funds
|
(5,000
|
)
|
-
|
(4,955
|
)
|
-
|
(4,955
|
)
|
||||||||||||
Subordinated debt
|
(5,376
|
)
|
-
|
(5,439
|
)
|
-
|
(5,439
|
)
|
||||||||||||
Interest payable
|
(393
|
)
|
(7
|
)
|
(386
|
)
|
-
|
(393
|
)
|
Fair Value Measurements at
September 30, 2018 Using:
|
||||||||||||||||
Carrying Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
Available for sale
|
||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||
U. S. agency MBS - residential
|
$
|
222,157
|
$
|
-
|
$
|
222,157
|
$
|
-
|
||||||||
U. S. agency CMO's - residential
|
71,380
|
-
|
71,380
|
-
|
||||||||||||
Total mortgage-backed securities of government sponsored agencies
|
293,537
|
-
|
293,537
|
-
|
||||||||||||
U. S. government sponsored agency securities
|
13,002
|
-
|
13,002
|
-
|
||||||||||||
Obligations of states and political subdivisions
|
8,686
|
-
|
8,686
|
-
|
||||||||||||
Total securities available for sale
|
$
|
315,225
|
$
|
-
|
$
|
315,225
|
$
|
-
|
Fair Value Measurements at
December 31, 2017 Using:
|
||||||||||||||||
Carrying Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
Available for sale
|
||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||
U. S. agency MBS - residential
|
$
|
196,590
|
$
|
-
|
$
|
196,590
|
$
|
-
|
||||||||
U. S. agency CMO's
|
51,108
|
-
|
51,108
|
-
|
||||||||||||
Total mortgage-backed securities of government sponsored agencies
|
247,698
|
-
|
247,698
|
-
|
||||||||||||
U. S. government sponsored agency securities
|
19,134
|
-
|
19,134
|
-
|
||||||||||||
Obligations of states and political subdivisions
|
11,634
|
-
|
11,634
|
-
|
||||||||||||
Total securities available for sale
|
$
|
278,466
|
$
|
-
|
$
|
278,466
|
$
|
-
|
Fair Value Measurements at September 30, 2018 Using
|
||||||||||||||||
Carrying Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
Assets:
|
||||||||||||||||
Impaired loans:
|
||||||||||||||||
Multifamily real estate
|
$
|
1,900
|
$
|
-
|
$
|
-
|
$
|
1,900
|
||||||||
Commercial real estate
|
||||||||||||||||
Owner occupied
|
469
|
-
|
-
|
469
|
||||||||||||
Non-owner occupied
|
3,137
|
-
|
-
|
3,137
|
||||||||||||
Commercial and industrial
|
144
|
-
|
-
|
144
|
||||||||||||
Construction and land
|
2,650
|
-
|
-
|
2,650
|
||||||||||||
Total impaired loans
|
$
|
8,300
|
$
|
-
|
$
|
-
|
$
|
8,300
|
||||||||
Other real estate owned:
|
||||||||||||||||
Residential real estate
|
$
|
281
|
$
|
-
|
$
|
-
|
$
|
281
|
||||||||
Commercial real estate
|
||||||||||||||||
Owner occupied
|
175
|
-
|
-
|
175
|
||||||||||||
Non-owner occupied
|
200
|
-
|
-
|
200
|
||||||||||||
Construction and land
|
150
|
-
|
-
|
150
|
||||||||||||
Total OREO
|
$
|
806
|
$
|
-
|
$
|
-
|
$
|
806
|
September 30,
2018
|
Valuation Techniques
|
Unobservable Inputs
|
Range
(Weighted Avg)
|
||||||
Impaired loans:
|
|||||||||
Multifamily real estate
|
$
|
1,900
|
sales comparison
|
adjustment for estimated realizable value
|
46.7%-46.7% (46.7%) | ||||
Commercial real estate
|
|||||||||
Owner occupied
|
469
|
sales comparison
|
adjustment for estimated realizable value
|
36.9%-36.9% (36.9%) | |||||
Non-owner occupied
|
3,137
|
income approach
|
adjustment for differences in net operating income expectations
|
65.9%-93.6% (70.5%) | |||||
Commercial and industrial
|
144
|
discounted cash flows
|
recovery probability
|
N/A
|
|||||
Construction and land
|
2,650
|
sales comparison
|
adjustment for percentage of completion of construction
|
42.3%-42.3% (42.3%) | |||||
Total impaired loans
|
$
|
8,300
|
|||||||
Other real estate owned:
|
|||||||||
Residential real estate
|
$
|
281
|
sales comparison
|
adjustment for estimated realizable value
|
11.0%-19.2% (14.2%) | ||||
Commercial real estate
|
|||||||||
Owner occupied
|
175
|
sales comparison
|
adjustment for estimated realizable value
|
21.8%-21.8% (21.8%) | |||||
Non-owner occupied
|
200
|
sales comparison
|
adjustment for estimated realizable value
|
58.9%-58.9% (58.9%) | |||||
Construction and land
|
150
|
sales comparison
|
adjustment for estimated realizable value
|
50.3%-50.3% (50.3%) | |||||
Total OREO
|
$
|
806
|
Fair Value Measurements at December 31, 2017 Using
|
||||||||||||||||
Carrying Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
Assets:
|
||||||||||||||||
Impaired loans:
|
||||||||||||||||
Multifamily real estate
|
$
|
1,910
|
$
|
-
|
$
|
-
|
$
|
1,910
|
||||||||
Commercial real estate
|
||||||||||||||||
Owner occupied
|
568
|
-
|
-
|
568
|
||||||||||||
Non-owner occupied
|
1,984
|
-
|
-
|
1,984
|
||||||||||||
Commercial and industrial
|
111
|
-
|
-
|
111
|
||||||||||||
Construction and land
|
3,309
|
-
|
-
|
3,309
|
||||||||||||
Total impaired loans
|
$
|
7,882
|
$
|
-
|
$
|
-
|
$
|
7,882
|
||||||||
Other real estate owned:
|
||||||||||||||||
Residential real estate
|
$
|
352
|
$
|
-
|
$
|
-
|
$
|
352
|
||||||||
Commercial real estate
|
||||||||||||||||
Owner occupied
|
175
|
-
|
-
|
175
|
||||||||||||
Non-owner occupied
|
200
|
-
|
-
|
200
|
||||||||||||
Construction and land
|
1,914
|
-
|
-
|
1,914
|
||||||||||||
Total OREO
|
$
|
2,641
|
$
|
-
|
$
|
-
|
$
|
2,641
|
December 31,
2017
|
Valuation Techniques
|
Unobservable Inputs
|
Range
(Weighted Avg)
|
||||||
Impaired loans:
|
|||||||||
Multifamily real estate
|
$
|
1,910
|
sales comparison
|
adjustment for estimated realizable value
|
46.0%-46.7% (46.4%) | ||||
Commercial real estate
|
|||||||||
Owner occupied
|
568
|
sales comparison
|
adjustment for estimated realizable value
|
23.1%-23.1% (23.1%) | |||||
Non-owner occupied
|
1,984
|
income approach
|
adjustment for differences in net operating income expectations
|
67.4%-67.4% (67.4%) | |||||
Commercial and industrial
|
111
|
sales comparison
|
adjustment for estimated realizable value
|
8.0%-71.1% (64.2%) | |||||
Construction and land
|
3,309
|
sales comparison
|
adjustment for percentage of completion of construction
|
27.7%-27.7% (27.7%) | |||||
Total impaired loans
|
$
|
7,882
|
|||||||
Other real estate owned:
|
|||||||||
Residential real estate
|
$
|
352
|
sales comparison
|
adjustment for estimated realizable value
|
8.8%-50.2% (20.0%) | ||||
Commercial real estate
|
|||||||||
Owner occupied
|
175
|
sales comparison
|
adjustment for estimated realizable value
|
21.8%-21.8% (21.8%) | |||||
Non-owner occupied
|
200
|
sales comparison
|
adjustment for estimated realizable value
|
58.9%-58.9% (58.9%) | |||||
Construction and land
|
1,914
|
sales comparison
|
adjustment for estimated realizable value
|
25.2%-69.0% (27.8%) | |||||
Total OREO
|
$
|
2,641
|
PREMIER FINANCIAL BANCORP, INC.
|
||||||||||||||||||||||||
AVERAGE CONSOLIDATED BALANCE SHEETS
|
||||||||||||||||||||||||
AND NET INTEREST INCOME ANALYSIS
|
||||||||||||||||||||||||
Nine Months Ended Sept 30, 2018
|
Nine Months Ended Sept 30, 2017
|
|||||||||||||||||||||||
Balance
|
Interest
|
Yield/Rate
|
Balance
|
Interest
|
Yield/Rate
|
|||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest Earning Assets
|
||||||||||||||||||||||||
Federal funds sold and other
|
$
|
80,960
|
$
|
1,151
|
1.90
|
%
|
$
|
46,851
|
$
|
515
|
1.47
|
%
|
||||||||||||
Securities available for sale
|
||||||||||||||||||||||||
Taxable
|
284,136
|
4,787
|
2.25
|
286,602
|
4,236
|
1.97
|
||||||||||||||||||
Tax-exempt
|
9,362
|
166
|
3.01
|
12,523
|
198
|
3.24
|
||||||||||||||||||
Total investment securities
|
293,498
|
4,953
|
2.27
|
299,125
|
4,434
|
2.02
|
||||||||||||||||||
Total loans
|
1,035,634
|
41,449
|
5.35
|
1,038,719
|
41,667
|
5.36
|
||||||||||||||||||
Total interest-earning assets
|
1,410,092
|
47,553
|
4.51
|
%
|
1,384,695
|
46,616
|
4.51
|
%
|
||||||||||||||||
Allowance for loan losses
|
(12,843
|
)
|
(11,231
|
)
|
||||||||||||||||||||
Cash and due from banks
|
25,967
|
40,700
|
||||||||||||||||||||||
Other assets
|
86,392
|
80,857
|
||||||||||||||||||||||
Total assets
|
$
|
1,509,608
|
$
|
1,495,021
|
||||||||||||||||||||
Liabilities and Equity
|
||||||||||||||||||||||||
Interest-bearing liabilities
|
||||||||||||||||||||||||
Interest-bearing deposits
|
$
|
946,718
|
3,583
|
0.51
|
$
|
959,489
|
2,854
|
0.40
|
||||||||||||||||
Short-term borrowings
|
21,769
|
25
|
0.15
|
22,512
|
21
|
0.12
|
||||||||||||||||||
Other borrowings
|
4,080
|
125
|
4.10
|
7,586
|
234
|
4.12
|
||||||||||||||||||
Subordinated debt
|
5,386
|
257
|
6.38
|
5,355
|
218
|
5.44
|
||||||||||||||||||
Total interest-bearing liabilities
|
977,953
|
3,990
|
0.55
|
%
|
994,942
|
3,327
|
0.45
|
%
|
||||||||||||||||
Non-interest bearing deposits
|
340,922
|
314,344
|
||||||||||||||||||||||
Other liabilities
|
4,121
|
4,582
|
||||||||||||||||||||||
Stockholders' equity
|
186,612
|
181,153
|
||||||||||||||||||||||
Total liabilities and equity
|
$
|
1,509,608
|
$
|
1,495,021
|
||||||||||||||||||||
Net interest earnings
|
$
|
43,563
|
$
|
43,289
|
||||||||||||||||||||
Net interest spread
|
3.96
|
%
|
4.06
|
%
|
||||||||||||||||||||
Net interest margin
|
4.13
|
%
|
4.19
|
%
|
PREMIER FINANCIAL BANCORP, INC.
|
||||||||||||||||||||||||
AVERAGE CONSOLIDATED BALANCE SHEETS
|
||||||||||||||||||||||||
AND NET INTEREST INCOME ANALYSIS
|
||||||||||||||||||||||||
Three Months Ended Sept 30, 2018
|
Three Months Ended Sept 30, 2017
|
|||||||||||||||||||||||
Balance
|
Interest
|
Yield/Rate
|
Balance
|
Interest
|
Yield/Rate
|
|||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest Earning Assets
|
||||||||||||||||||||||||
Federal funds sold and other
|
$
|
89,644
|
$
|
473
|
2.09
|
%
|
$
|
32,288
|
$
|
176
|
2.16
|
%
|
||||||||||||
Securities available for sale
|
||||||||||||||||||||||||
Taxable
|
297,367
|
1,745
|
2.35
|
288,241
|
1,427
|
1.98
|
||||||||||||||||||
Tax-exempt
|
8,555
|
52
|
3.14
|
11,579
|
62
|
3.30
|
||||||||||||||||||
Total investment securities
|
305,922
|
1,797
|
2.37
|
299,820
|
1,489
|
2.03
|
||||||||||||||||||
Total loans
|
1,032,099
|
13,731
|
5.28
|
1,047,202
|
13,469
|
5.10
|
||||||||||||||||||
Total interest-earning assets
|
1,427,665
|
16,001
|
4.46
|
%
|
1,379,310
|
15,134
|
4.37
|
%
|
||||||||||||||||
Allowance for loan losses
|
(13,252
|
)
|
(11,760
|
)
|
||||||||||||||||||||
Cash and due from banks
|
22,410
|
41,253
|
||||||||||||||||||||||
Other assets
|
85,166
|
79,702
|
||||||||||||||||||||||
Total assets
|
$
|
1,521,989
|
$
|
1,488,505
|
||||||||||||||||||||
Liabilities and Equity
|
||||||||||||||||||||||||
Interest-bearing liabilities
|
||||||||||||||||||||||||
Interest-bearing deposits
|
$
|
947,588
|
1,355
|
0.57
|
$
|
946,258
|
954
|
0.40
|
||||||||||||||||
Short-term borrowings
|
23,233
|
10
|
0.17
|
22,784
|
7
|
0.12
|
||||||||||||||||||
Other borrowings
|
3,592
|
37
|
4.09
|
6,553
|
68
|
4.12
|
||||||||||||||||||
Subordinated debentures
|
5,394
|
90
|
6.62
|
5,365
|
74
|
5.47
|
||||||||||||||||||
Total interest-bearing liabilities
|
979,807
|
1,492
|
0.60
|
%
|
980,960
|
1,103
|
0.45
|
%
|
||||||||||||||||
Non-interest bearing deposits
|
349,028
|
318,894
|
||||||||||||||||||||||
Other liabilities
|
4,634
|
4,539
|
||||||||||||||||||||||
Stockholders' equity
|
188,520
|
184,112
|
||||||||||||||||||||||
Total liabilities and equity
|
$
|
1,521,989
|
$
|
1,488,505
|
||||||||||||||||||||
Net interest earnings
|
$
|
14,509
|
$
|
14,031
|
||||||||||||||||||||
Net interest spread
|
3.86
|
%
|
3.92
|
%
|
||||||||||||||||||||
Net interest margin
|
4.04
|
%
|
4.05
|
%
|
(In Thousands)
|
||||||||
2018
|
2017
|
|||||||
Non-accrual loans
|
$
|
18,293
|
$
|
15,246
|
||||
Accruing loans which are contractually past due 90 days or more
|
992
|
3,391
|
||||||
Accruing restructured loans
|
6,577
|
12,584
|
||||||
Total non-performing loans
|
25,862
|
31,221
|
||||||
Other real estate acquired through foreclosure (OREO)
|
14,379
|
19,966
|
||||||
Total non-performing assets
|
$
|
40,241
|
$
|
51,187
|
||||
Non-performing loans as a percentage of total loans
|
2.49
|
%
|
2.98
|
%
|
||||
Non-performing assets as a percentage of total assets
|
2.61
|
%
|
3.43
|
%
|
1. |
Core deposits consisting of both consumer and commercial deposits and certificates of deposit of $250,000 or more. Management believes that the majority of its $250,000 or more certificates of deposit are no more volatile than its other deposits. This is due to the nature of the markets in which the subsidiaries operate.
|
2. |
Cash flow generated by repayment of loans and interest.
|
3. |
Arrangements with correspondent banks for purchase of unsecured federal funds.
|
4. |
The sale of securities under repurchase agreements and borrowing from the Federal Home Loan Bank.
|
5. |
Maintenance of an adequate available-for-sale security portfolio. The Company owns $315.2 million of securities at fair value as of September 30, 2018.
|
Item 1.
|
Legal Proceedings
|
None
|
Item 1A.
|
Risk Factors
|
|
Please refer to Premier's Annual Report on Form 10-K for the year ended December 31, 2017 for disclosures with respect to Premier's risk factors at December 31, 2017. There have been no material changes since year-end 2017 in the specified risk factors disclosed in the Annual Report on Form 10-K.
|
||
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
None
|
Item 3.
|
Defaults Upon Senior Securities
|
None
|
Item 4.
|
Mine Safety Disclosures
|
Not Applicable
|
Item 5.
|
Other Information
|
None
|
Item 6.
|
Exhibits
|