þ
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the fiscal year ended
December 31, 2013
|
|
or
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the transition period from ___________ to ___________
|
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
|
Title of each class
|
Name of exchange on which registered
|
|
Common Stock without par value
|
NASDAQ:GMS
|
Large accelerated filer
o
.
|
Accelerated filer
þ
.
|
Non-accelerated filer
o
.
|
Smaller reporting company
o
|
Title of each class
|
Outstanding at March 1, 2014
|
|
Common Stock without par value
|
8,046,846
|
Document
|
Parts Into Which Incorporated
|
|
Proxy Statement for the Annual Meeting of Shareholders to be held on June 18, 2014.
|
Part III
|
PART I
|
||||
4
|
||||
21
|
||||
32
|
||||
33
|
||||
34
|
||||
34
|
||||
PART II
|
||||
35
|
||||
38
|
||||
39
|
||||
71
|
||||
90
|
||||
91
|
||||
94
|
||||
96
|
||||
97
|
||||
98
|
||||
99
|
||||
100
|
||||
103
|
||||
162
|
||||
162
|
||||
162
|
||||
PART III
|
||||
163
|
||||
163
|
||||
163
|
||||
163
|
||||
163
|
||||
PART IV
|
||||
164
|
||||
169
|
||||
|
·
|
created a new agency to centralize responsibility for consumer financial protection, the Consumer Financial Protection Bureau, which will be responsible for implementing, examining and enforcing compliance with federal consumer financial laws;
|
|
·
|
apply the same leverage and risk-based capital requirements that apply to insured depository institutions to most bank holding companies;
|
|
·
|
require bank holding companies and banks to be both well capitalized and well managed in order to acquire banks located outside their home state;
|
|
·
|
change the assessment base for federal deposit insurance from the amount of insured deposits to consolidated assets less tangible capital, eliminate the ceiling on the size of the Deposit Insurance Fund and increase the floor of the size for the Deposit Insurance Fund;
|
|
·
|
impose comprehensive regulation of the over-the-counter derivatives market, which would include certain provisions that would effectively prohibit insured depository institutions from conducting certain derivatives businesses within the institution itself;
|
|
·
|
require large, publicly-traded bank holding companies to create a risk committee responsible for the oversight of enterprise risk management;
|
|
·
|
implemented corporate governance revisions, including with regard to executive compensation and proxy access by shareholders, that apply to all public companies, not just financial institutions;
|
|
·
|
made permanent the $250,000 limit for federal deposit insurance, increased the cash limit of Securities Investor Protection Corporation protection from $100,000 to $250,000 and provided unlimited federal deposit insurance for non-interest-bearing demand transaction accounts at all insured depository institutions until December 31, 2012;
|
|
·
|
repealed the federal prohibitions on the payment of interest on demand deposits, thereby permitting depository institutions to pay interest on business transaction and other accounts;
|
|
·
|
amended the Electronic Fund Transfer Act (“EFTA”) to, among other things, give the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”) the authority to establish rules regarding interchange fees charged for electronic debit transactions by payment card issuers having assets over $10 billion and to enforce a new statutory requirement that such fees be reasonable and proportional to the actual cost of a transaction to the issuer; and
|
|
·
|
increased the authority of the Federal Reserve Board to examine financial holding companies and their non-bank subsidiaries.
|
•
|
timely and successfully integrate the operations of Premier and each of the acquisitions;
|
•
|
maintain the existing relationships with the depositors of each acquisition to minimize the withdrawal of deposits subsequent to the merger(s);
|
•
|
maintain and enhance the existing relationships with the borrowers of each acquisition to limit potential losses from loans made by the them;
|
•
|
control the incremental non-interest expense of the integrated operations to maintain overall operating efficiencies;
|
•
|
retain and attract qualified personnel at each acquisition; and
|
•
|
compete effectively in the communities served by each acquisition and in nearby communities.
|
•
|
timely and successfully integrate the operations of the merging subsidiaries into a cohesive single bank operation;
|
•
|
maintain the existing relationships with the depositors of each of the merging subsidiaries to minimize the withdrawal of deposits subsequent to the merger(s);
|
•
|
maintain and enhance the existing relationships with the borrowers of each of the merging subsidiares to limit potential losses from loans made by the them;
|
•
|
control the incremental non-interest expense of the integrated operations to maintain overall operating efficiencies;
|
•
|
retain and attract qualified personnel at each resulting institution; and
|
•
|
compete effectively in the communities served by each of the merging subsidiaries and in nearby communities.
|
Branch
|
Address
|
Location and Zip Code
|
Leased/
Owned
|
AA Branch
|
67 Commercial Drive, Suite 3
|
Vanceburg, KY 41179
|
Leased
|
Brooksville
|
111 Powell Street
|
Brooksville, KY 41004
|
Owned
|
Garrison
|
9234 East KY 8
|
Garrison, KY 41141
|
Owned
|
Ripley
|
104 Main Street
|
Ripley, OH 45167
|
Owned
|
Aberdeen
|
130 Stivers Road
|
Aberdeen, OH 45101
|
Owned
|
Maysville
|
1201 US 68
|
Maysville, KY 41056
|
Owned
|
Mt. Olivet
|
103-107 South Main Street
|
Mt. Olivet, KY 41064
|
Owned
|
Tollesboro
|
2954 West KY 10
|
Tollesboro, KY 41189
|
Owned
|
Ironton
|
221 Railroad Street
|
Ironton, OH 20001
|
Owned
|
Proctorville
|
7604 County Road 107 Unit A
|
Proctorville, OH 45669
|
Leased
|
South Webster
|
110 N. Jackson Street
|
South Webster, OH 45682
|
Owned
|
Eminence
|
5230 South Main Street
|
Eminence, KY
|
Owned
|
Cash
|
Sales Price
|
|||||||||||
Dividends Paid
|
High
|
Low
|
||||||||||
2012
|
||||||||||||
First Quarter
|
$ | 0.00 | $ | 7.89 | $ | 4.42 | ||||||
Second Quarter
|
0.00 | 8.49 | 6.75 | |||||||||
Third Quarter
|
0.11 | 9.75 | 6.76 | |||||||||
Fourth Quarter
|
0.11 | 11.54 | 8.77 | |||||||||
0.22 | ||||||||||||
2013
|
||||||||||||
First Quarter
|
$ | 0.11 | $ | 12.50 | $ | 10.37 | ||||||
Second Quarter
|
0.11 | 13.10 | 10.99 | |||||||||
Third Quarter
|
0.11 | 13.00 | 11.40 | |||||||||
Fourth Quarter
|
0.11 | 14.73 | 11.60 | |||||||||
0.44 | ||||||||||||
2014
|
||||||||||||
First Quarter (through March 1, 2014)
|
$ | 0.11 | $ | 14.75 | $ | 13.70 |
Period Ending
|
|||||||||||||||||||
Index
|
12/31/08
|
12/31/09
|
12/31/10
|
12/31/11
|
12/31/12
|
12/31/13
|
|||||||||||||
Premier Financial Bancorp, Inc.
|
100.00
|
102.52
|
100.56
|
69.13
|
173.80
|
235.41
|
|||||||||||||
Russell 3000
|
100.00
|
128.34
|
150.07
|
151.61
|
176.49
|
235.71
|
|||||||||||||
SNL $500M-$1B Bank Index
|
100.00
|
71.68
|
81.25
|
74.10
|
91.37
|
132.87
|
|||||||||||||
*Source: SNL Financial LC, Charlottesville, VA
|
Plan Category
|
Number of securities to be issued upon exercise of outstanding options, warrants and rights
(a)
|
Weighted-average exercise price of outstanding options, warrants and rights
(b)
|
Number of securities remaining available for future issuance under equity compensation plans (Excluding securities reflected in column (a))
(c)
|
|||||||||
Equity compensation plans approved by shareholders
|
||||||||||||
2002 Stock Option Plan
|
303,181 | $ | 9.58 | 0 | ||||||||
2012 Long-term Incentive Plan
|
51,100 | 11.39 | 448,900 | |||||||||
Equity compensation plans
not
approved by shareholders
|
||||||||||||
None
|
||||||||||||
Total
|
354,281 | $ | 9.84 | 448,900 |
(Dollars in thousands, except per share amounts)
|
At or for the Year Ended December 31
|
|||||||||||||||||||
2013
|
2012
|
2011
|
2010
|
2009
|
||||||||||||||||
Earnings
|
||||||||||||||||||||
Net interest income
|
$ | 43,695 | $ | 43,999 | $ | 44,208 | $ | 43,744 | $ | 31,083 | ||||||||||
Provision for loan losses
|
(375 | ) | 4,260 | 3,630 | 3,297 | 1,052 | ||||||||||||||
Non-interest income
|
7,732 | 9,529 | 6,911 | 6,761 | 9,136 | |||||||||||||||
Non-interest expense
|
31,169 | 33,272 | 36,521 | 34,219 | 27,115 | |||||||||||||||
Income taxes
|
7,404 | 5,673 | 3,800 | 3,817 | 2,934 | |||||||||||||||
Net income
|
13,229 | 10,323 | 7,168 | 9,172 | 9,118 | |||||||||||||||
Preferred stock dividends, net of
redemption discount
|
659 | 168 | 1,221 | 1,249 | 133 | |||||||||||||||
Net income available to
common shareholders
|
$ | 12,570 | $ | 10,155 | $ | 5,947 | $ | 7,923 | $ | 8,985 | ||||||||||
Financial Position
|
||||||||||||||||||||
Total assets
|
$ | 1,100,179 | $ | 1,120,787 | $ | 1,124,087 | $ | 1,183,251 | $ | 1,101,750 | ||||||||||
Loans
|
740,770 | 704,625 | 690,923 | 725,964 | 699,133 | |||||||||||||||
Allowance for loan losses
|
11,027 | 11,488 | 9,795 | 9,865 | 7,569 | |||||||||||||||
Goodwill and other intangibles
|
31,996 | 32,596 | 33,268 | 34,060 | 31,519 | |||||||||||||||
Securities
|
218,066 | 283,975 | 278,479 | 256,520 | 240,970 | |||||||||||||||
Deposits
|
924,023 | 930,583 | 925,078 | 985,291 | 913,784 | |||||||||||||||
Other borrowings
|
25,119 | 42,151 | 51,418 | 62,711 | 55,564 | |||||||||||||||
Preferred equity
|
11,955 | 11,896 | 21,949 | 21,841 | 21,705 | |||||||||||||||
Common equity
|
134,985 | 132,400 | 122,058 | 109,556 | 106,851 | |||||||||||||||
Per Common Share Data
|
||||||||||||||||||||
Net income – basic
|
1.57 | 1.28 | 0.75 | 1.00 | 1.32 | |||||||||||||||
Net income - diluted
|
1.49 | 1.24 | 0.74 | 0.98 | 1.32 | |||||||||||||||
Book value
|
16.79 | 16.63 | 15.38 | 13.80 | 13.46 | |||||||||||||||
Tangible book value
|
12.81 | 12.53 | 11.19 | 9.51 | 9.49 | |||||||||||||||
Cash dividends
|
0.44 | 0.22 | 0.00 | 0.22 | 0.44 | |||||||||||||||
Financial Ratios
|
||||||||||||||||||||
Return on average assets
|
1.13 | % | 0.90 | % | 0.51 | % | 0.71 | % | 1.09 | % | ||||||||||
Return on average
common equity
|
9.29 | % | 7.89 | % | 5.08 | % | 7.12 | % | 9.47 | % | ||||||||||
Dividend payout
|
28.03 | % | 17.19 | % | 0.00 | % | 22.00 | % | 33.33 | % | ||||||||||
Stockholders’ equity to total
assets at period-end
|
13.36 | % | 12.87 | % | 12.81 | % | 11.10 | % | 11.67 | % | ||||||||||
Average stockholders’ equity
to average total assets
|
13.21 | % | 12.94 | % | 11.98 | % | 11.84 | % | 12.19 | % |
ANALYSIS of RETURN ON ASSETS and EQUITY
|
||||||||||||||||||||
2013
|
2012
|
2011
|
2010
|
2009
|
||||||||||||||||
As a percent of average earning assets
|
||||||||||||||||||||
Fully taxable-equivalent net interest income
|
4.26 | % | 4.25 | % | 4.18 | % | 4.25 | % | 4.12 | % | ||||||||||
Provision for loan losses
|
0.04 | (0.41 | ) | (0.34 | ) | (0.32 | ) | (0.14 | ) | |||||||||||
Net credit income
|
4.30 | 3.84 | 3.84 | 3.94 | 3.98 | |||||||||||||||
Gains on acquisition of subsidiary and
sales of assets
|
0.14 | 0.29 | 0.00 | 0.00 | 0.47 | |||||||||||||||
Non-interest income
|
0.61 | 0.63 | 0.65 | 0.65 | 0.74 | |||||||||||||||
Non-interest expense
|
(3.02 | ) | (3.19 | ) | (3.43 | ) | (3.30 | ) | (3.57 | ) | ||||||||||
Tax equivalent adjustment
|
(0.02 | ) | (0.02 | ) | (0.03 | ) | (0.03 | ) | (0.03 | ) | ||||||||||
Applicable income taxes
|
(0.72 | ) | (0.54 | ) | (0.36 | ) | (0.37 | ) | (0.39 | ) | ||||||||||
Discount on redemption of preferred stock
|
0.00 | 0.09 | 0.00 | 0.00 | 0.00 | |||||||||||||||
Preferred stock dividends
|
(0.06 | ) | (0.10 | ) | (0.11 | ) | (0.12 | ) | (0.02 | ) | ||||||||||
Return on average earning assets
|
1.22 | % | 0.97 | % | 0.56 | % | 0.77 | % | 1.18 | % | ||||||||||
Multiplied by average earning assets to
average total assets
|
92.43 | 91.91 | 91.89 | 92.16 | 92.20 | |||||||||||||||
Return on average assets
|
1.13 | % | 0.90 | % | 0.51 | % | 0.71 | % | 1.09 | % | ||||||||||
Multiplied by average assets to
average common stockholders’ equity
|
8.24 | X | 8.81 | X | 9.91 | X | 10.10 | X | 8.68 | X | ||||||||||
Return on average common equity
|
9.29 | % | 7.89 | % | 5.08 | % | 7.12 | % | 9.47 | % |
QUARTERLY FINANCIAL INFORMATION
|
||||||||||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||||||||
First
|
Second
|
Third
|
Fourth
|
Full Year
|
||||||||||||||||
2013
|
||||||||||||||||||||
Interest income
|
$ | 11,415 | $ | 12,317 | $ | 13,192 | $ | 11,546 | $ | 48,470 | ||||||||||
Interest expense
|
1,275 | 1,224 | 1,165 | 1,111 | 4,775 | |||||||||||||||
Net interest income
|
10,140 | 11,093 | 12,027 | 10,435 | 43,695 | |||||||||||||||
Provision for loan losses
|
570 | (70 | ) | 50 | (925 | ) | (375 | ) | ||||||||||||
Gain on investment securities
|
148 | - | 72 | 1,193 | 1,413 | |||||||||||||||
Net overhead
|
5,890 | 6,228 | 5,893 | 6,839 | 24,850 | |||||||||||||||
Income before income taxes
|
3,828 | 4,935 | 6,156 | 5,714 | 20,633 | |||||||||||||||
Net income
|
2,504 | 3,109 | 3,926 | 3,690 | 13,229 | |||||||||||||||
Dividends and accretion on preferred stock
|
165 | 165 | 165 | 164 | 659 | |||||||||||||||
Net income available to common stockholders
|
2,339 | 2,944 | 3,761 | 3,526 | 12,570 | |||||||||||||||
Basic net income per share
|
0.29 | 0.37 | 0.47 | 0.44 | 1.57 | |||||||||||||||
Diluted net income per share
|
0.28 | 0.35 | 0.44 | 0.41 | 1.49 | |||||||||||||||
Dividends paid per share
|
0.11 | 0.11 | 0.11 | 0.11 | 0.44 | |||||||||||||||
2012
|
||||||||||||||||||||
Interest income
|
$ | 14,219 | $ | 11,956 | $ | 12,580 | $ | 11,683 | $ | 50,435 | ||||||||||
Interest expense
|
1,798 | 1,648 | 1,563 | 1,427 | 6,436 | |||||||||||||||
Net interest income
|
12,418 | 10,308 | 11,017 | 10,256 | 43,999 | |||||||||||||||
Provision for loan losses
|
950 | 750 | 1,260 | 1,300 | 4,260 | |||||||||||||||
Gain on investment securities
|
- | - | 273 | 272 | 545 | |||||||||||||||
Gain on sale of loan
|
- | - | - | 2,463 | 2,463 | |||||||||||||||
Net overhead
|
7,077 | 6,434 | 6,241 | 6,999 | 26,751 | |||||||||||||||
Income before income taxes
|
4,391 | 3,124 | 3,789 | 4,692 | 15,996 | |||||||||||||||
Net income
|
2,830 | 2,092 | 2,411 | 2,990 | 10,323 | |||||||||||||||
Discount on preferred stock redemption
|
- | - - | 905 | - | 905 | |||||||||||||||
Dividends and accretion on preferred stock
|
305 | 306 | 298 | 164 | 1,073 | |||||||||||||||
Net income available to common stockholders
|
2,525 | 1,786 | 3,018 | 2,826 | 10,155 | |||||||||||||||
Basic net income per share
|
0.32 | 0.23 | 0.38 | 0.36 | 1.28 | |||||||||||||||
Diluted net income per share
|
0.31 | 0.22 | 0.37 | 0.34 | 1.24 | |||||||||||||||
Dividends paid per share
|
0.00 | 0.00 | 0.11 | 0.11 | 0.22 | |||||||||||||||
AVERAGE CONSOLIDATED BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS
|
|||||||||||||||||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||
2013
|
2012
|
2011
|
|||||||||||||||||||||||||||||
Average
Balance
|
Interest
|
Yield/
Rate (2)
|
Average
Balance
|
Interest
|
Yield/
Rate (2)
|
Average
Balance
|
Interest
|
Yield/
Rate (2)
|
|||||||||||||||||||||||
Assets:
|
|||||||||||||||||||||||||||||||
Interest earning assets
|
|||||||||||||||||||||||||||||||
U.S. Treasury and federal
agency securities
|
$ | 9,463 | $ | 167 | 1.76 | % | $ | 27,088 | $ | 423 | 1.56 | % | $ | 37,916 | $ | 868 | 2.29 | % | |||||||||||||
States and municipal
obligations (1)
|
5,222 | 235 | 4.50 | 7,304 | 315 | 4.31 | 10,023 | 470 | 4.69 | ||||||||||||||||||||||
Mortgage backed securities
|
237,079 | 5,481 | 2.31 | 255,586 | 6,053 | 2.37 | 228,980 | 6,298 | 2.75 | ||||||||||||||||||||||
Other securities
|
8,233 | 324 | 3.94 | 11,380 | 487 | 4.28 | 11,683 | 532 | 4.55 | ||||||||||||||||||||||
Total investment securities
|
259,997 | 6,207 | 2.39 | 301,358 | 7,278 | 2.42 | 288,602 | 8,168 | 2.83 | ||||||||||||||||||||||
Federal funds sold
|
8,918 | 9 | 0.10 | 11,265 | 7 | 0.06 | 15,203 | 7 | 0.05 | ||||||||||||||||||||||
Interest-bearing deposits
with banks
|
45,746 | 148 | 0.32 | 46,595 | 140 | 0.30 | 57,022 | 157 | 0.28 | ||||||||||||||||||||||
Loans, net of unearned
income (3)(4)
|
|||||||||||||||||||||||||||||||
Commercial
|
511,764 | 30,006 | 5.86 | 469,927 | 29,604 | 6.30 | 481,493 | 29,717 | 6.17 | ||||||||||||||||||||||
Real estate mortgage
|
155,735 | 9,101 | 5.84 | 162,194 | 10,061 | 6.20 | 169,186 | 10,858 | 6.42 | ||||||||||||||||||||||
Installment
|
48,517 | 3,217 | 6.63 | 50,836 | 3,594 | 7.07 | 53,887 | 3,943 | 7.32 | ||||||||||||||||||||||
Total loans
|
716,016 | 42,324 | 5.91 | 682,957 | 43,259 | 6.33 | 704,566 | 44,518 | 6.32 | ||||||||||||||||||||||
Total interest earning assets
|
1,030,677 | 48,688 | 4.72 | 1,042,175 | 50,684 | 4.86 | 1,065,393 | 52,850 | 4.96 | ||||||||||||||||||||||
Allowance for loan losses
|
(12,211 | ) | (10,234 | ) | (11,218 | ) | |||||||||||||||||||||||||
Cash and due from banks
|
26,839 | 28,140 | 28,022 | ||||||||||||||||||||||||||||
Premises and equipment
|
16,117 | 16,226 | 16,390 | ||||||||||||||||||||||||||||
Other assets
|
53,697 | 57,640 | 60,781 | ||||||||||||||||||||||||||||
Total assets
|
$ | 1,115,119 | $ | 1,133,947 | $ | 1,159,368 | |||||||||||||||||||||||||
Liabilities and Equity:
|
|||||||||||||||||||||||||||||||
Interest bearing liabilities
|
|||||||||||||||||||||||||||||||
NOW and money market
|
$ | 262,320 | 470 | 0.18 | % | $ | 247,820 | 591 | 0.24 | % | $ | 229,437 | 657 | 0.29 | % | ||||||||||||||||
Savings deposits
|
124,005 | 125 | 0.10 | 120,197 | 167 | 0.14 | 114,834 | 266 | 0.23 | ||||||||||||||||||||||
Certificates of deposit and
other time deposits
|
348,070 | 3,493 | 1.00 | 378,368 | 4,795 | 1.27 | 410,154 | 6,204 | 1.51 | ||||||||||||||||||||||
Total interest bearing
deposits
|
734,395 | 4,088 | 0.56 | 746,385 | 5,553 | 0.74 | 754,425 | 7,127 | 0.94 | ||||||||||||||||||||||
Short-term borrowings
|
14,832 | 37 | 0.25 | 21,030 | 88 | 0.42 | 24,783 | 158 | 0.64 | ||||||||||||||||||||||
Other borrowings
|
14,935 | 650 | 4.35 | 17,010 | 754 | 4.43 | 19,125 | 852 | 4.45 | ||||||||||||||||||||||
FHLB advances
|
- | - | - | 1,869 | 41 | 2.19 | 10,287 | 190 | 1.85 | ||||||||||||||||||||||
Total interest-bearing
liabilities
|
764,162 | 4,775 | 0.62 | % | 786,294 | 6,436 | 0.82 | % | 808,620 | 8,327 | 1.03 | % | |||||||||||||||||||
Non-interest bearing deposits
|
199,574 | 196,968 | 209,188 | ||||||||||||||||||||||||||||
Other liabilities
|
4,092 | 3,990 | 2,652 | ||||||||||||||||||||||||||||
Preferred equity
|
11,924 | 17,947 | 21,868 | ||||||||||||||||||||||||||||
Common equity
|
135,367 | 128,748 | 117,040 | ||||||||||||||||||||||||||||
Total liabilities and equity
|
$ | 1,115,119 | $ | 1,133,947 | $ | 1,159,368 | |||||||||||||||||||||||||
Net interest earnings
(1)
|
$ | 43,913 | $ | 44,248 | $ | 44,523 | |||||||||||||||||||||||||
Net interest spread
(1)
|
4.10 | % | 4.04 | % | 3.93 | % | |||||||||||||||||||||||||
Net interest margin
(1)
|
4.26 | % | 4.25 | % | 4.18 | % | |||||||||||||||||||||||||
(1) Taxable – equivalent yields are calculated assuming a 34% federal income tax rate
(2) Yields are calculated on historical cost except for yields on marketable equity securities that are calculated used fair value
(3) Includes loan fees, immaterial in amount, in both interest income and the calculation of yield on loans
(4) Includes loans on non-accrual status
|
LOAN SUMMARY
|
||||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||
As of December 31,
|
||||||||||||||||||||||||||||||
2013
|
2012
|
2011
|
2010
|
2009
|
||||||||||||||||||||||||||
Summary of Loans by Type
|
||||||||||||||||||||||||||||||
Commercial, secured by real
estate
|
$ | 358,114 | 48.3 | % | $ | 314,198 | 44.6 | % | $ | 317,559 | 46.0 | % | $ | 319,048 | 43.9 | % | $ | 304,607 | 43.6 | % | ||||||||||
Commercial, other
|
85,301 | 11.5 | 84,430 | 12.0 | 76,960 | 11.1 | 82,591 | 11.4 | 76,140 | 10.9 | ||||||||||||||||||||
Real estate construction and
land development
|
47,123 | 6.4 | 52,706 | 7.5 | 34,730 | 5.0 | 48,213 | 6.6 | 51,637 | 7.4 | ||||||||||||||||||||
Real estate mortgage
|
216,081 | 29.2 | 214,743 | 30.5 | 221,756 | 32.1 | 233,513 | 32.2 | 227,508 | 32.5 | ||||||||||||||||||||
Agricultural
|
2,052 | 0.3 | 2,566 | 0.4 | 2,729 | 0.4 | 2,564 | 0.4 | 2,710 | 0.4 | ||||||||||||||||||||
Consumer
|
25,113 | 3.4 | 28,128 | 4.0 | 30,090 | 4.4 | 32,926 | 4.5 | 33,356 | 4.8 | ||||||||||||||||||||
Other
|
6,986 | 0.9 | 7,854 | 1.0 | 7,099 | 1.0 | 7,109 | 1.0 | 3,175 | 0.4 | ||||||||||||||||||||
Total loans
|
$ | 740,770 | 100.0 | % | $ | 704,625 | 100.0 | % | $ | 690,923 | 100.0 | % | $ | 725,964 | 100.0 | % | $ | 699,133 | 100.0 | % | ||||||||||
Non-performing Assets
|
||||||||||||||||||||||||||||||
Non-accrual loans
|
$ | 16,641 | $ | 25,806 | $ | 42,354 | $ | 47,131 | $ | 46,299 | ||||||||||||||||||||
Accruing loans which are contractually past due 90 days or more
|
8,478 | 3,890 | 4,527 | 414 | 489 | |||||||||||||||||||||||||
Accruing troubled debt restructurings
|
3,655 | 14,106 | 5,951 | 2,639 | 11,974 | |||||||||||||||||||||||||
Total non-performing and restructured loans
|
28,774 | 43,802 | 52,832 | 50,184 | 58,762 | |||||||||||||||||||||||||
Other real estate acquired through foreclosures
|
13,524 | 13,366 | 14,642 | 11,249 | 9,251 | |||||||||||||||||||||||||
Total non-performing and restructured loans and other real estate
|
$ | 42,298 | $ | 57,168 | $ | 67,474 | $ | 61,433 | $ | 68,013 | ||||||||||||||||||||
Non-performing and restructured loans as a % of total loans
|
3.88 | % | 6.22 | % | 7.65 | % | 6.91 | % | 8.40 | % | ||||||||||||||||||||
Non-performing and restructured loans and other real estate as a % of total assets
|
3.84 | % | 5.10 | % | 6.00 | % | 5.19 | % | 6.17 | % | ||||||||||||||||||||
Allocation of Allowance for
Loan Losses
|
||||||||||||||||||||||||||||||
Commercial, other
|
$ | 2,420 | 12.7 | % | $ | 3,918 | 13.4 | % | $ | 2,669 | 12.5 | % | $ | 2,650 | 12.8 | % | $ | 1,129 | 11.7 | % | ||||||||||
Real estate, construction
|
1,226 | 6.4 | 1,826 | 7.5 | 1,111 | 5.0 | 1,142 | 6.6 | 364 | 7.4 | ||||||||||||||||||||
Real estate, other
|
7,084 | 77.5 | 5,499 | 75.1 | 5,717 | 78.1 | 5,703 | 76.1 | 5,571 | 76.1 | ||||||||||||||||||||
Consumer installment
|
297 | 3.4 | 245 | 4.0 | 298 | 4.4 | 370 | 4.5 | 505 | 4.8 | ||||||||||||||||||||
Total
|
$ | 11,027 | 100.0 | % | $ | 11,488 | 100.0 | % | $ | 9,795 | 100.0 | % | $ | 9,865 | 100.0 | % | $ | 7,569 | 100.0 | % | ||||||||||
SUMMARY OF LOAN LOSS EXPERIENCE
|
||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
For the Year Ended December 31
|
||||||||||||||||||||
2013
|
2012
|
2011
|
2010
|
2009
|
||||||||||||||||
Allowance for loan losses,
beginning of period
|
$ | 11,488 | $ | 9,795 | $ | 9,865 | $ | 7,569 | $ | 8,544 | ||||||||||
Amounts charged off:
|
||||||||||||||||||||
Commercial, financial and agricultural loans
|
231 | 1,485 | 227 | 466 | 777 | |||||||||||||||
Real estate construction loans
|
52 | 380 | 2,747 | 59 | 37 | |||||||||||||||
Real estate loans – other
|
438 | 1,061 | 900 | 635 | 1,171 | |||||||||||||||
Consumer installment loans
|
188 | 227 | 152 | 313 | 452 | |||||||||||||||
Total charge-offs
|
909 | 3,153 | 4,026 | 1,473 | 2,437 | |||||||||||||||
Recoveries on amounts previously charged-off:
|
||||||||||||||||||||
Commercial, financial and agricultural loans
|
198 | 126 | 121 | 131 | 82 | |||||||||||||||
Real estate construction loans
|
233 | - | 1 | 40 | - | |||||||||||||||
Real estate loans – other
|
319 | 359 | 116 | 131 | 208 | |||||||||||||||
Consumer installment loans
|
73 | 101 | 88 | 170 | 120 | |||||||||||||||
Total recoveries
|
823 | 586 | 326 | 472 | 410 | |||||||||||||||
Net charge-offs
|
86 | 2,567 | 3,700 | 1,001 | 2,027 | |||||||||||||||
Provision for loan losses
|
(375 | ) | 4,260 | 3,630 | 3,297 | 1,052 | ||||||||||||||
Allowance for loan losses, end of period
|
$ | 11,027 | $ | 11,488 | $ | 9,795 | $ | 9,865 | $ | 7,569 | ||||||||||
Average total loans
|
$ | 716,016 | $ | 682,957 | $ | 704,566 | $ | 702,194 | $ | 526,473 | ||||||||||
Total loans at year-end
|
740,770 | 704,625 | 690,923 | 725,964 | 699,133 | |||||||||||||||
As a percent of average loans
|
||||||||||||||||||||
Net charge-offs
|
0.01 | % | 0.38 | % | 0.53 | % | 0.14 | % | 0.39 | % | ||||||||||
Provision for loan losses
|
(0.05 | )% | 0.62 | % | 0.52 | % | 0.47 | % | 0.20 | % | ||||||||||
Allowance for loan losses
|
1.54 | % | 1.68 | % | 1.39 | % | 1.40 | % | 1.44 | % | ||||||||||
As a percent of total loans at year-end
|
||||||||||||||||||||
Allowance for loan losses
|
1.49 | % | 1.63 | % | 1.42 | % | 1.36 | % | 1.08 | % | ||||||||||
As a multiple of net charge-offs
|
||||||||||||||||||||
Allowance for loan losses
|
128.22 | X | 4.48 | X | 2.65 | X | 9.86 | X | 3.73 | X | ||||||||||
Income before tax and provision for loan losses
|
235.56 | X | 7.89 | X | 3.95 | X | 16.27 | X | 6.46 | X | ||||||||||
LOAN MATURITIES and INTEREST SENSITIVITY
|
||||||||||||||||
December 31, 2013
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Projected Maturities*
|
||||||||||||||||
One Year or
Less
|
One Through
Five Years
|
Over
Five Years
|
Total
|
|||||||||||||
Commercial, secured by real estate
|
$ | 100,638 | $ | 241,339 | $ | 16,137 | $ | 358,114 | ||||||||
Commercial, other
|
39,082 | 43,477 | 2,742 | 85,301 | ||||||||||||
Real estate construction
|
28,912 | 10,605 | 7,606 | 47,123 | ||||||||||||
Agricultural
|
510 | 1,502 | 40 | 2,052 | ||||||||||||
Total
|
$ | 169,142 | $ | 296,923 | $ | 26,525 | $ | 492,500 | ||||||||
Fixed rate loans
|
$ | 44,377 | $ | 190,383 | $ | 24,894 | $ | 259,654 | ||||||||
Floating rate loans
|
124,765 | 106,540 | 1,631 | 232,936 | ||||||||||||
Total
|
$ | 169,142 | $ | 296,923 | $ | 26,525 | $ | 492,500 | ||||||||
Fixed rate loans projected to mature after one year
|
$ | 215,277 | ||||||||||||||
Floating rate loans projected to mature after one year
|
108,171 | |||||||||||||||
Total
|
$ | 323,448 | ||||||||||||||
(*) Based on scheduled or approximate repayments
|
FAIR VALUE OF SECURITIES AVAILABLE FOR SALE
|
||||||||||||
(Dollars in thousands)
|
||||||||||||
As of December 31
|
||||||||||||
2013
|
2012
|
2011
|
||||||||||
U.S. government sponsored entity securities
|
$ | 6,981 | $ | 22,244 | $ | 18,141 | ||||||
States and political subdivisions
|
6,540 | 7,860 | 9,650 | |||||||||
Mortgage-backed securities issued by
government sponsored entities
|
204,545 | 249,947 | 245,993 | |||||||||
Corporate securities
|
- | 3,924 | 4,695 | |||||||||
Total securities
|
$ | 218,066 | $ | 283,975 | $ | 278,479 | ||||||
SECURITIES MATURITY AND YIELD ANALYSIS
|
||||||||||||
December 31, 2013
|
||||||||||||
(Dollars in thousands)
|
||||||||||||
Market Value
|
Average Maturity (yrs/mos)
|
Taxable Equivalent Yield*
|
||||||||||
U.S. government sponsored entity securities
|
||||||||||||
After one but within five years
|
$ | 3,091 | 1.09 | % | ||||||||
After five but within ten years
|
3,890 | 2.01 | ||||||||||
Total U.S. government sponsored entity securities
|
$ | 6,981 | 4/6 | 1.62 | ||||||||
States and political subdivisions
|
||||||||||||
Within one year
|
1,027 | 4.42 | ||||||||||
After one but within five years
|
5,513 | 4.57 | ||||||||||
Total states and political subdivisions securities
|
$ | 6,540 | 2/8 | 4.54 | ||||||||
Mortgage-backed securities**
|
||||||||||||
Within one year
|
192 | 4.25 | ||||||||||
After one but within five years
|
191,476 | 2.66 | ||||||||||
After five but within ten years
|
12,877 | 1.99 | ||||||||||
Total mortgage-backed securities
|
$ | 204,545 | 3/8 | 2.61 | ||||||||
Total securities available-for-sale
|
$ | 218,066 | 3/8 | 2.64 | ||||||||
(*) Fully tax-equivalent using the rate of 34%
|
||||||||||||
(**) Maturities for mortgage-backed securities are based on expected average life
|
MATURITY OF TIME DEPOSITS $100,000 OR MORE
|
||||
December 31, 2013
|
||||
(Dollars in thousands)
|
||||
Maturing 3 months or less
|
$ | 25,210 | ||
Maturing over 3 months
|
25,562 | |||
Maturing over 6 months
|
41,582 | |||
Maturing over 12 months
|
54,551 | |||
Total
|
$ | 146,905 | ||
Year-end
2013
|
Year-end
2012
|
ALCO Guidelines
|
||||||||||
Projected 1-year net interest income
|
||||||||||||
-100 bp change vs. base rate
|
-1.5 | % | -0.8 | % | 5 | % | ||||||
+100 bp change vs. base rate
|
1.6 | % | 0.4 | % | 5 | % | ||||||
Projected 1-year net interest income
|
||||||||||||
-200 bp change vs. base rate
|
-2.6 | % | -1.9 | % | 10 | % | ||||||
+200 bp change vs. base rate
|
3.8 | % | 2.7 | % | 10 | % |
SELECTED CAPITAL INFORMATION
|
||||||||||||
(Dollars in thousands)
|
||||||||||||
As of December 31
|
||||||||||||
2013
|
2012
|
Change
|
||||||||||
Stockholders’ Equity
|
$ | 146,940 | $ | 144,296 | $ | 2,644 | ||||||
Disallowed amounts of goodwill and other intangibles
|
(27,693 | ) | (27,995 | ) | 302 | |||||||
Unrealized (gain) loss on securities available for sale
|
625 | (6,576 | ) | 7,201 | ||||||||
Tier I capital
|
$ | 119,872 | $ | 109,725 | $ | 10,147 | ||||||
Tier II capital adjustments
|
||||||||||||
Allowable amount of the allowance for loan losses
|
8,884 | 8,537 | ||||||||||
Total capital
|
$ | 128,756 | $ | 118,262 | ||||||||
Total risk-weighted assets
|
$ | 708,565 | $ | 679,986 | ||||||||
Ratios
|
||||||||||||
Tier I capital to risk-weighted assets
|
16.92 | % | 16.14 | % | ||||||||
Total capital to risk-weighted assets
|
18.17 | % | 17.39 | % | ||||||||
Leverage
|
11.02 | % | 10.04 | % |
NON-INTEREST INCOME AND EXPENSE
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Increase (Decrease) Over Prior Year
|
||||||||||||||||||||||||||||
2013
|
2012
|
|||||||||||||||||||||||||||
2013
|
2012
|
2011
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||||||||||||
Non-interest income:
|
||||||||||||||||||||||||||||
Service charges on deposit
accounts
|
$ | 3,357 | $ | 3,543 | $ | 3,825 | $ | (186 | ) | (5.25 | ) | $ | (282 | ) | (7.37 | ) | ||||||||||||
Electronic banking income
|
2,018 | 2,017 | 1,843 | 1 | 0.05 | 174 | 9.44 | |||||||||||||||||||||
Secondary market mortgage income
|
256 | 311 | 314 | (55 | ) | (17.68 | ) | (3 | ) | (0.96 | ) | |||||||||||||||||
Other
|
688 | 650 | 911 | 38 | 5.85 | (261 | ) | (28.65 | ) | |||||||||||||||||||
Total fees and other income
|
$ | 6,319 | $ | 6,521 | $ | 6,893 | (202 | ) | (3.10 | ) | (372 | ) | (5.40 | ) | ||||||||||||||
Gain on sale of note
|
0 | 2,463 | 0 | (2,463 | ) | 2,463 | ||||||||||||||||||||||
Investment securities gains
|
1,413 | 545 | 18 | 868 | 527 | |||||||||||||||||||||||
Total non-interest income
|
$ | 7,732 | $ | 9,529 | $ | 6,911 | $ | (1,797 | ) | (18.86 | ) | $ | 2,618 | 37.88 | ||||||||||||||
Non-interest expense:
|
||||||||||||||||||||||||||||
Salaries and wages
|
$ | 12,212 | $ | 12,394 | $ | 13,385 | $ | (182 | ) | (1.47 | ) | $ | (991 | ) | (7.40 | ) | ||||||||||||
Employee benefits
|
2,834 | 2,728 | 2,852 | 106 | 3.89 | (124 | ) | (4.35 | ) | |||||||||||||||||||
Total staff costs
|
15,046 | 15,122 | 16,237 | (76 | ) | (0.50 | ) | (1,115 | ) | (6.87 | ) | |||||||||||||||||
Occupancy and equipment
|
4,338 | 4,553 | 4,900 | (215 | ) | (4.72 | ) | (347 | ) | (7.08 | ) | |||||||||||||||||
Outside data processing
|
3,372 | 3,379 | 4,458 | (7 | ) | (0.21 | ) | (1,079 | ) | (24.20 | ) | |||||||||||||||||
Professional fees
|
900 | 1,181 | 966 | (281 | ) | (23.79 | ) | 215 | 22.26 | |||||||||||||||||||
Taxes, other than payroll,
property and income
|
686 | 667 | 663 | 19 | 2.85 | 4 | 0.60 | |||||||||||||||||||||
Amortization of intangibles
|
600 | 672 | 792 | (72 | ) | (10.71 | ) | (120 | ) | (15.15 | ) | |||||||||||||||||
OREO gains, losses and
expenses, net
|
1,853 | 2,514 | 405 | (661 | ) | (26.29 | ) | 2,109 | 520.74 | |||||||||||||||||||
Loan collection expenses
|
413 | 1,182 | 1,172 | (769 | ) | (65.06 | ) | 10 | 0.85 | |||||||||||||||||||
FDIC insurance
|
835 | 809 | 1,223 | 26 | 3.21 | (414 | ) | (33.85 | ) | |||||||||||||||||||
Conversion expense
|
25 | 25 | 1,720 | - | (1,695 | ) | ||||||||||||||||||||||
Other expenses
|
3,101 | 3,168 | 3,985 | (67 | ) | (2.11 | ) | (817 | ) | (20.50 | ) | |||||||||||||||||
Total non-interest expenses
|
$ | 31,169 | $ | 33,272 | $ | 36,521 | $ | (2,103 | ) | (6.32 | ) | $ | (3,249 | ) | (8.90 | ) | ||||||||||||
/s/ Robert W. Walker
|
/s/ Brien M. Chase
|
|
Robert W. Walker, President and
|
Brien M. Chase, Senior Vice President
|
|
Chief Executive Officer
|
and Chief Financial Officer
|
|
Date: March 13, 2014
|
Date: March 13, 2014
|
|
2013
|
2012
|
|||||||
ASSETS
|
||||||||
Cash and due from banks
|
$ | 27,378 | $ | 32,473 | ||||
Interest bearing bank balances
|
36,606 | 33,536 | ||||||
Federal funds sold
|
12,777 | 4,236 | ||||||
Cash and cash equivalents
|
76,761 | 70,245 | ||||||
Securities available for sale
|
218,066 | 283,975 | ||||||
Loans held for sale
|
77 | 200 | ||||||
Loans
|
740,770 | 704,625 | ||||||
Allowance for loan losses
|
(11,027 | ) | (11,488 | ) | ||||
Net loans
|
729,743 | 693,137 | ||||||
Federal Home Loan Bank stock, at cost
|
4,183 | 4,181 | ||||||
Premises and equipment, net
|
17,798 | 15,952 | ||||||
Other real estate owned
|
13,524 | 13,366 | ||||||
Interest receivable
|
3,132 | 3,403 | ||||||
Goodwill
|
29,875 | 29,875 | ||||||
Other intangible assets
|
2,121 | 2,721 | ||||||
Deferred taxes
|
4,439 | 2,624 | ||||||
Other assets
|
460 | 1,108 | ||||||
Total assets
|
$ | 1,100,179 | $ | 1,120,787 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Deposits
|
||||||||
Non-interest bearing
|
$ | 210,193 | $ | 198,084 | ||||
Time deposits, $100,000 and over
|
146,905 | 146,198 | ||||||
Other interest bearing
|
566,925 | 586,301 | ||||||
Total deposits
|
924,023 | 930,583 | ||||||
Securities sold under agreements to repurchase
|
11,319 | 26,102 | ||||||
Other borrowed funds
|
13,800 | 16,049 | ||||||
Interest payable
|
383 | 489 | ||||||
Other liabilities
|
3,714 | 3,268 | ||||||
Total liabilities
|
953,239 | 976,491 | ||||||
Commitments and contingent liabilities
|
- | - | ||||||
Stockholders' equity
|
||||||||
Preferred stock, no par value, liquidation preference $12,000,
5% cumulative; 1,000,000 shares authorized; 12,000 shares
issued and outstanding
|
11,955 | 11,896 | ||||||
Common stock, no par value; 20,000,000 shares authorized;
8,038,345 shares issued and outstanding in 2013, and
7,962,693 shares issued and outstanding in 2012
|
73,589 | 72,849 | ||||||
Retained earnings
|
62,021 | 52,975 | ||||||
Accumulated other comprehensive income (loss)
|
(625 | ) | 6,576 | |||||
Total stockholders' equity
|
146,940 | 144,296 | ||||||
Total liabilities and stockholders' equity
|
$ | 1,100,179 | $ | 1,120,787 |
2013
|
2012
|
2011
|
||||||||||
Interest income
|
||||||||||||
Loans, including fees
|
$ | 42,186 | $ | 43,117 | $ | 44,363 | ||||||
Securities available for sale
|
||||||||||||
Taxable
|
5,972 | 6,963 | 7,771 | |||||||||
Tax-exempt
|
155 | 208 | 237 | |||||||||
Federal funds sold and other
|
157 | 147 | 164 | |||||||||
Total interest income
|
48,470 | 50,435 | 52,535 | |||||||||
Interest expense
|
||||||||||||
Deposits
|
4,088 | 5,553 | 7,127 | |||||||||
Repurchase agreements and other
|
37 | 88 | 158 | |||||||||
FHLB advances and other borrowings
|
650 | 795 | 1,042 | |||||||||
Total interest expense
|
4,775 | 6,436 | 8,327 | |||||||||
Net interest income
|
43,695 | 43,999 | 44,208 | |||||||||
Provision for loan losses
|
(375 | ) | 4,260 | 3,630 | ||||||||
Net interest income after provision for loan losses
|
44,070 | 39,739 | 40,578 | |||||||||
Non-interest income
|
||||||||||||
Service charges on deposit accounts
|
3,357 | 3,543 | 3,825 | |||||||||
Electronic banking income
|
2,018 | 2,017 | 1,843 | |||||||||
Secondary market mortgage income
|
256 | 311 | 314 | |||||||||
Gain on disposition of securities
|
1,413 | 545 | 18 | |||||||||
Gain on sale of loan
|
- | 2,463 | - | |||||||||
Other
|
688 | 650 | 911 | |||||||||
7,732 | 9,529 | 6,911 | ||||||||||
Non-interest expenses
|
||||||||||||
Salaries and employee benefits
|
15,046 | 15,122 | 16,237 | |||||||||
Occupancy and equipment expenses
|
4,338 | 4,553 | 4,900 | |||||||||
Outside data processing
|
3,372 | 3,379 | 4,458 | |||||||||
Professional fees
|
900 | 1,181 | 966 | |||||||||
Taxes, other than payroll, property and income
|
686 | 667 | 663 | |||||||||
Write-downs, expenses, losses on sales of other
real estate owned, net of gains
|
1,853 | 2,514 | 405 | |||||||||
Loan collection expenses
|
413 | 1,182 | 1,172 | |||||||||
FDIC insurance
|
835 | 809 | 1,223 | |||||||||
Amortization of intangibles
|
600 | 672 | 792 | |||||||||
Conversion expenses
|
25 | 25 | 1,720 | |||||||||
Other expenses
|
3,101 | 3,168 | 3,985 | |||||||||
31,169 | 33,272 | 36,521 | ||||||||||
Income before income taxes
|
20,633 | 15,996 | 10,968 | |||||||||
Provision for income taxes
|
7,404 | 5,673 | 3,800 | |||||||||
Net income
|
$ | 13,229 | $ | 10,323 | $ | 7,168 | ||||||
Discount on redemption of preferred stock
|
- | 905 | - | |||||||||
Preferred stock dividends and accretion
|
(659 | ) | (1,073 | ) | (1,221 | ) | ||||||
Net income available to common stockholders
|
$ | 12,570 | $ | 10,155 | $ | 5,947 | ||||||
Earnings per share:
|
||||||||||||
Basic
|
$ | 1.57 | $ | 1.28 | $ | 0.75 | ||||||
Diluted
|
1.49 | 1.24 | 0.74 |
2013
|
2012
|
2011
|
||||||||||
Net income
|
$ | 13,229 | $ | 10,323 | $ | 7,168 | ||||||
Other comprehensive income (loss)
:
|
||||||||||||
Unrealized gains (losses) on securities arising
during the period
|
(9,497 | ) | 2,914 | 9,788 | ||||||||
Reclassification of realized amount
|
(1,413 | ) | (545 | ) | (18 | ) | ||||||
Net change in unrealized gain (loss) on securities
|
(10,910 | ) | 2,369 | 9,770 | ||||||||
Less tax impact
|
(3,709 | ) | 806 | 3,322 | ||||||||
Other comprehensive income (loss)
:
|
(7,201 | ) | 1,563 | 6,448 | ||||||||
Comprehensive income
|
$ | 6,028 | $ | 11,886 | $ | 13,616 | ||||||
Preferred
Stock
|
Common
Stock
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Total
|
||||||||||||||||
Balances, January 1, 2011
|
$ | 21,841 | $ | 71,465 | $ | 39,526 | $ | (1,435 | ) | $ | 131,397 | |||||||||
Net income
|
- | - | 7,168 | - | 7,168 | |||||||||||||||
Other comprehensive income
|
- | - | - | 6,448 | 6,448 | |||||||||||||||
Dividends declared on preferred stock
|
- | - | (1,112 | ) | - | (1,112 | ) | |||||||||||||
Preferred stock accretion
|
108 | - | (108 | ) | - | - | ||||||||||||||
Stock based compensation expense
|
- | 106 | - | - | 106 | |||||||||||||||
Balances, December 31, 2011
|
21,949 | 71,571 | 45,474 | 5,013 | 144,007 | |||||||||||||||
Net income
|
- | - | 10,323 | - | 10,323 | |||||||||||||||
Other comprehensive income
|
- | - | - | 1,563 | 1,563 | |||||||||||||||
Cash dividends paid ($0.22 per share)
|
- | - | (1,749 | ) | - | (1,749 | ) | |||||||||||||
Redemption of preferred stock
|
(10,142 | ) | 905 | - | - | (9,237 | ) | |||||||||||||
Dividends declared on preferred stock
|
- | - | (984 | ) | - | (984 | ) | |||||||||||||
Preferred stock accretion
|
89 | - | (89 | ) | - | - | ||||||||||||||
Stock options exercised
|
- | 192 | - | - | 192 | |||||||||||||||
Stock based compensation expense
|
- | 181 | - | - | 181 | |||||||||||||||
Balances, December 31, 2012
|
11,896 | 72,849 | 52,975 | 6,576 | 144,296 | |||||||||||||||
Net income
|
- | - | 13,229 | - | 13,229 | |||||||||||||||
Other comprehensive income (loss)
|
- | - | - | (7,201 | ) | (7,201 | ) | |||||||||||||
Cash dividends paid ($0.44 per share)
|
- | - | (3,524 | ) | - | (3,524 | ) | |||||||||||||
Dividends declared on preferred stock
|
- | - | (600 | ) | - | (600 | ) | |||||||||||||
Preferred stock accretion
|
59 | - | (59 | ) | - | - | ||||||||||||||
Stock options exercised
|
- | 571 | - | - | 571 | |||||||||||||||
Stock based compensation expense
|
- | 169 | - | - | 169 | |||||||||||||||
Balances, December 31, 2013
|
$ | 11,955 | $ | 73,589 | $ | 62,021 | $ | (625 | ) | $ | 146,940 | |||||||||
2013
|
2012
|
2011
|
||||||||||
Cash flows from operating activities
|
||||||||||||
Net income
|
$ | 13,229 | $ | 10,323 | $ | 7,168 | ||||||
Adjustments to reconcile net income to net cash
from operating activities
|
||||||||||||
Depreciation and impairment of real estate, net
|
1,342 | 1,445 | 1,468 | |||||||||
Provision for loan losses
|
(375 | ) | 4,260 | 3,630 | ||||||||
Amortization (accretion), net
|
(463 | ) | (1,098 | ) | (1,351 | ) | ||||||
Writedowns (gains) on other real estate owned, net
|
716 | 957 | (394 | ) | ||||||||
Stock compensation expense
|
169 | 181 | 106 | |||||||||
Loans originated for sale
|
(11,053 | ) | (14,472 | ) | (15,759 | ) | ||||||
Secondary market loans sold
|
11,432 | 14,653 | 17,491 | |||||||||
Secondary market mortgage income
|
(256 | ) | (311 | ) | (314 | ) | ||||||
Gain on sale of loan
|
- | (2,463 | ) | - | ||||||||
Gain on the disposition of securities available for sale
|
(1,413 | ) | (545 | ) | (18 | ) | ||||||
Changes in :
|
||||||||||||
Interest receivable
|
271 | 94 | 245 | |||||||||
Deferred income taxes
|
1,895 | 568 | 4,099 | |||||||||
Other assets
|
649 | 3,439 | (1,954 | ) | ||||||||
Interest payable
|
(106 | ) | (223 | ) | (187 | ) | ||||||
Other liabilities
|
446 | 396 | 197 | |||||||||
Net cash from operating activities
|
16,483 | 17,204 | 14,427 | |||||||||
Cash flows from investing activities
|
||||||||||||
Purchases of securities available for sale
|
(27,230 | ) | (73,771 | ) | (122,730 | ) | ||||||
Proceeds from maturities and calls of securities
available for sale
|
73,801 | 69,329 | 109,165 | |||||||||
Proceeds from the sale of securities available for sale
|
8,650 | - | - | |||||||||
Purchase of FHLB stock, net of redemptions
|
(2 | ) | 1,035 | (373 | ) | |||||||
Redemption of FRB stock
|
- | - | 2,253 | |||||||||
Net change in loans
|
(35,838 | ) | (16,103 | ) | 26,066 | |||||||
Purchases of premises and equipment, net
|
(3,188 | ) | (1,042 | ) | (1,086 | ) | ||||||
Improvements to OREO property
|
(2,897 | ) | - | - | ||||||||
Proceeds from sales of other real estate owned
|
3,846 | 6,105 | 5,135 | |||||||||
Net cash from investing activities
|
17,142 | (14,447 | ) | 18,430 |
2013
|
2012
|
2011
|
||||||||||
Cash flows from financing activities
|
||||||||||||
Net change in deposits
|
(6,524 | ) | 5,604 | (59,783 | ) | |||||||
Net change in agreements to repurchase securities
|
(14,783 | ) | 2,897 | (6,432 | ) | |||||||
Repayment of Federal Home Loan Bank advances
|
- | (10,042 | ) | (2,564 | ) | |||||||
Repayment of other borrowed funds
|
(2,249 | ) | (2,081 | ) | (2,048 | ) | ||||||
Redemption of preferred stock
|
- | (9,237 | ) | - | ||||||||
Proceeds from stock option exercises
|
571 | 192 | - | |||||||||
Preferred stock dividends paid
|
(600 | ) | (984 | ) | (1,390 | ) | ||||||
Common stock dividends paid
|
(3,524 | ) | (1,749 | ) | - | |||||||
Net cash from financing activities
|
(27,109 | ) | (15,400 | ) | (72,217 | ) | ||||||
Net change in cash and cash equivalents
|
6,516 | (12,643 | ) | (39,360 | ) | |||||||
Cash and cash equivalents at beginning of year
|
70,245 | 82,888 | 122,248 | |||||||||
Cash and cash equivalents at end of year
|
$ | 76,761 | $ | 70,245 | $ | 82,888 | ||||||
2013
|
2012
|
2011
|
||||||||||
Supplemental disclosures of cash flow information:
|
||||||||||||
Cash paid during year for -
|
||||||||||||
Interest
|
$ | 4,881 | $ | 6,659 | $ | 8,514 | ||||||
Income taxes paid, net
|
5,410 | 2,549 | 2,459 | |||||||||
Non-cash transactions
|
||||||||||||
Loans transferred to real estate acquired
through foreclosure
|
$ | 1,823 | $ | 5,786 | $ | 8,134 | ||||||
Unaudited
|
||||||||||||
December 31, 2013
|
||||||||||||
Subsidiary
|
Location
|
Year
Acquired
|
Total
Assets
|
Net
Income
|
||||||||
Citizens Deposit Bank & Trust
|
Vanceburg, Kentucky
|
1991
|
$ | 363,248 | $ | 5,081 | ||||||
Premier Bank, Inc.
|
Huntington, West Virginia
|
1998
|
729,695 | 9,930 | ||||||||
Parent and Intercompany Eliminations
|
7,236 | (1,782 | ) | |||||||||
Consolidated total
|
$ | 1,100,179 | $ | 13,229 |
2013
|
Amortized Cost
|
Unrealized Gains
|
Unrealized Losses
|
Fair Value
|
||||||||||||
Available for sale
|
||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||
U. S. sponsored agency MBS - residential
|
$ | 27,681 | $ | 463 | $ | (321 | ) | $ | 27,823 | |||||||
U. S. sponsored agency CMO’s - residential
|
178,000 | 1,167 | (2,445 | ) | 176,722 | |||||||||||
Total mortgage-backed securities of
government sponsored agencies
|
205,681 | 1,630 | (2,766 | ) | 204,545 | |||||||||||
U. S. government sponsored
agency securities
|
7,058 | 30 | (107 | ) | 6,981 | |||||||||||
Obligations of states and political
subdivisions
|
6,275 | 265 | - | 6,540 | ||||||||||||
Total available for sale
|
$ | 219,014 | $ | 1,925 | $ | (2,873 | ) | $ | 218,066 | |||||||
2012
|
Amortized Cost
|
Unrealized Gains
|
Unrealized Losses
|
Fair Value
|
||||||||||||
Available for sale
|
||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||
U. S. sponsored agency MBS - residential
|
$ | 35,172 | $ | 1,928 | $ | - | $ | 37,100 | ||||||||
U. S. sponsored agency CMO’s - residential
|
206,466 | 6,392 | (11 | ) | 212,847 | |||||||||||
Total mortgage-backed securities of
government sponsored agencies
|
241,638 | 8,320 | (11 | ) | 249,947 | |||||||||||
U. S. government sponsored
agency securities
|
22,062 | 182 | - | 22,244 | ||||||||||||
Obligations of states and political
subdivisions
|
7,419 | 441 | - | 7,860 | ||||||||||||
Other securities
|
2,892 | 1,105 | (73 | ) | 3,924 | |||||||||||
Total available for sale
|
$ | 274,011 | $ | 10,048 | $ | (84 | ) | $ | 283,975 |
Amortized
Cost
|
Fair
Value
|
|||||||
Available for sale
|
||||||||
Due in one year or less
|
$ | 1,017 | $ | 1,027 | ||||
Due after one year through five years
|
8,319 | 8,604 | ||||||
Due after five years through ten years
|
3,997 | 3,890 | ||||||
Mortgage-backed securities of government sponsored agencies
|
205,681 | 204,545 | ||||||
Total available for sale
|
$ | 219,014 | $ | 218,066 | ||||
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
|
$ | 3,890 | $ | (107 | ) | $ | - | $ | - | $ | 3,890 | $ | (107 | ) | ||||||||||
U.S government sponsored
agency MBS’s – residential
|
13,797 | (321 | ) | - | - | 13,797 | (321 | ) | ||||||||||||||||
U.S government sponsored
agency CMO’s – residential
|
102,341 | (2,445 | ) | - | - | 102,341 | (2,445 | ) | ||||||||||||||||
Total temporarily impaired
|
$ | 120,028 | $ | (2,873 | ) | $ | - | $ | - | $ | 120,028 | $ | (2,873 | ) |
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 CMO’s – residential
|
$ | 2,077 | $ | (11 | ) | $ | - | $ | - | $ | 2,077 | $ | (11 | ) | ||||||||||
Other securities
|
- | - | 4 | (73 | ) | 4 | (73 | ) | ||||||||||||||||
Total temporarily impaired
|
$ | 2,077 | $ | (11 | ) | $ | 4 | $ | (73 | ) | $ | 2,081 | $ | (84 | ) |
2013
|
2012
|
|||||||
Residential real estate
|
$ | 216,081 | $ | 214,743 | ||||
Multifamily real estate
|
38,456 | 28,673 | ||||||
Commercial real estate:
|
||||||||
Owner occupied
|
90,539 | 91,902 | ||||||
Non owner occupied
|
208,756 | 178,849 | ||||||
Commercial and industrial
|
85,301 | 84,430 | ||||||
Consumer
|
25,113 | 28,128 | ||||||
All other
|
76,524 | 77,900 | ||||||
$ | 740,770 | $ | 704,625 |
Balance, December 31, 2012
|
$ | 16,639 | ||
Additions, including loans now meeting disclosure requirements
|
1,530 | |||
Amounts collected and loans no longer meeting disclosure requirements
|
(6,973 | ) | ||
Balance, December 31, 2013
|
$ | 11,196 |
Loan Class
|
Balance
Dec 31, 2012
|
Provision for loan losses
|
Loans charged-off
|
Recoveries
|
Balance
Dec 31, 2013
|
|||||||||||||||
Residential real estate
|
$ | 2,163 | $ | 803 | $ | (292 | ) | $ | 20 | $ | 2,694 | |||||||||
Multifamily real estate
|
331 | 86 | - | - | 417 | |||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
1,117 | 123 | (132 | ) | 299 | 1,407 | ||||||||||||||
Non owner occupied
|
1,888 | 163 | (14 | ) | - | 2,037 | ||||||||||||||
Commercial and industrial
|
3,046 | (918 | ) | (32 | ) | 88 | 2,184 | |||||||||||||
Consumer
|
244 | 168 | (188 | ) | 73 | 297 | ||||||||||||||
All other
|
2,699 | (800 | ) | (251 | ) | 343 | 1,991 | |||||||||||||
Total
|
$ | 11,488 | $ | (375 | ) | $ | (909 | ) | $ | 823 | $ | 11,027 |
Loan Class
|
Balance
Dec 31, 2011
|
Provision for loan losses
|
Loans charged-off
|
Recoveries
|
Balance
Dec 31, 2012
|
|||||||||||||||
Residential real estate
|
$ | 2,134 | $ | 709 | $ | (728 | ) | $ | 48 | $ | 2,163 | |||||||||
Multifamily real estate
|
284 | 47 | - | - | 331 | |||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
918 | (68 | ) | (15 | ) | 282 | 1,117 | |||||||||||||
Non owner occupied
|
2,381 | (198 | ) | (318 | ) | 23 | 1,888 | |||||||||||||
Commercial and industrial
|
1,880 | 2,419 | (1,259 | ) | 6 | 3,046 | ||||||||||||||
Consumer
|
298 | 72 | (227 | ) | 101 | 244 | ||||||||||||||
All other
|
1,900 | 1,279 | (606 | ) | 126 | 2,699 | ||||||||||||||
Total
|
$ | 9,795 | $ | 4,260 | $ | (3,153 | ) | $ | 586 | $ | 11,488 |
Loan Class
|
Balance
Dec 31, 2010
|
Provision for loan losses
|
Loans charged-off
|
Recoveries
|
Balance
Dec 31, 2011
|
|||||||||||||||
Residential real estate
|
$ | 2,666 | $ | (241 | ) | $ | (347 | ) | $ | 56 | $ | 2,134 | ||||||||
Multifamily real estate
|
252 | 11 | - | 21 | 284 | |||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
1,141 | (52 | ) | (171 | ) | - | 918 | |||||||||||||
Non owner occupied
|
1,644 | 1,081 | (382 | ) | 38 | 2,381 | ||||||||||||||
Commercial and industrial
|
2,421 | (555 | ) | (23 | ) | 37 | 1,880 | |||||||||||||
Consumer
|
366 | (4 | ) | (152 | ) | 88 | 298 | |||||||||||||
All other
|
1,375 | 3,390 | (2,951 | ) | 86 | 1,900 | ||||||||||||||
Total
|
$ | 9,865 | $ | 3,630 | $ | (4,026 | ) | $ | 326 | $ | 9,795 |
2013
|
2012
|
|||||||
Residential Real Estate
|
$ | 183 | $ | 202 | ||||
Multifamily Real Estate
|
1,229 | 3,173 | ||||||
Commercial Real Estate
|
||||||||
Owner Occupied
|
250 | 271 | ||||||
Non owner Occupied
|
6,782 | 5,896 | ||||||
Commercial and industrial
|
496 | 511 | ||||||
All other
|
4,623 | 4,496 | ||||||
Total carrying amount
|
$ | 13,563 | $ | 14,549 | ||||
Carrying amount, net of allowance
|
$ | 12,931 | $ | 14,049 |
2013
|
2012
|
|||||||
Balance at January 1
|
$ | 635 | $ | - | ||||
New loans purchased
|
- | - | ||||||
Accretion of income
|
(26 | ) | (6 | ) | ||||
Income recognized upon full repayment
|
(415 | ) | - | |||||
Reclassifications from non-accretable difference
|
23 | 641 | ||||||
Disposals
|
- | - | ||||||
Balance at December 31
|
$ | 217 | $ | 635 |
December 31, 2013
|
Principal Owed on Non-accrual
Loans
|
Recorded Investment in Non-accrual
Loans
|
Loans Past Due Over 90 Days, still
accruing
|
|||||||||
Residential real estate
|
$ | 2,021 | $ | 1,725 | $ | 1,737 | ||||||
Multifamily real estate
|
3,282 | 1,889 | 1,369 | |||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
1,364 | 1,147 | 1,387 | |||||||||
Non owner occupied
|
2,683 | 1,973 | 3,739 | |||||||||
Commercial and industrial
|
6,838 | 4,961 | 84 | |||||||||
Consumer
|
167 | 148 | 16 | |||||||||
All other
|
12,212 | 4,798 | 146 | |||||||||
Total
|
$ | 28,567 | $ | 16,641 | $ | 8,478 | ||||||
December 31, 2012
|
Principal Owed on Non-accrual
Loans
|
Recorded Investment in Non-accrual
Loans
|
Loans Past Due Over 90 Days, still
accruing
|
|||||||||
Residential real estate
|
$ | 3,145 | $ | 2,813 | $ | 208 | ||||||
Multifamily real estate
|
5,501 | 4,390 | 227 | |||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
1,153 | 976 | 783 | |||||||||
Non owner occupied
|
3,207 | 2,174 | 74 | |||||||||
Commercial and industrial
|
11,407 | 9,897 | 555 | |||||||||
Consumer
|
278 | 267 | - | |||||||||
All other
|
5,468 | 5,289 | 2,043 | |||||||||
Total
|
$ | 30,159 | $ | 25,806 | $ | 3,890 | ||||||
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
|
$ | 216,081 | $ | 4,770 | $ | 2,431 | $ | 7,201 | $ | 208,880 | ||||||||||
Multifamily real estate
|
38,456 | 367 | 2,688 | 3,055 | 35,401 | |||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
90,539 | 516 | 2,073 | 2,589 | 87,950 | |||||||||||||||
Non owner occupied
|
208,756 | 278 | 5,478 | 5,756 | 203,000 | |||||||||||||||
Commercial and industrial
|
85,301 | 1,433 | 1,438 | 2,871 | 82,430 | |||||||||||||||
Consumer
|
25,113 | 421 | 82 | 503 | 24,610 | |||||||||||||||
All other
|
76,524 | 2,510 | 4,881 | 7,391 | 69,133 | |||||||||||||||
Total
|
$ | 740,770 | $ | 10,295 | $ | 19,071 | $ | 29,366 | $ | 711,404 |
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
|
$ | 214,743 | $ | 9,356 | $ | 2,040 | $ | 11,396 | $ | 203,347 | ||||||||||
Multifamily real estate
|
28,673 | 695 | 3,893 | 4,588 | 24,085 | |||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
91,902 | 6,212 | 1,129 | 7,341 | 84,561 | |||||||||||||||
Non owner occupied
|
178,849 | 5,267 | 2,248 | 7,515 | 171,334 | |||||||||||||||
Commercial and industrial
|
84,430 | 2,306 | 2,485 | 4,791 | 79,639 | |||||||||||||||
Consumer
|
28,128 | 602 | 176 | 778 | 27,350 | |||||||||||||||
All other
|
77,900 | 468 | 7,332 | 7,800 | 70,100 | |||||||||||||||
Total
|
$ | 704,625 | $ | 24,906 | $ | 19,303 | $ | 44,209 | $ | 660,416 |
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
|
$ | 138 | $ | 2,556 | $ | - | $ | 2,694 | $ | 2,787 | $ | 213,111 | $ | 183 | $ | 216,081 | ||||||||||||||||
Multifamily real estate
|
- | 417 | - | 417 | 1,822 | 35,405 | 1,229 | 38,456 | ||||||||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||||||
Owner occupied
|
170 | 1,237 | - | 1,407 | 2,386 | 87,903 | 250 | 90,539 | ||||||||||||||||||||||||
Non-owner occupied
|
362 | 1,675 | - | 2,037 | 1,024 | 200,950 | 6,782 | 208,756 | ||||||||||||||||||||||||
Commercial and industrial
|
1,088 | 964 | 132 | 2,184 | 4,270 | 80,535 | 496 | 85,301 | ||||||||||||||||||||||||
Consumer
|
- | 297 | - | 297 | - | 25,113 | - | 25,113 | ||||||||||||||||||||||||
All other
|
102 | 1,389 | 500 | 1,991 | 3,279 | 68,622 | 4,623 | 76,524 | ||||||||||||||||||||||||
Total
|
$ | 1,860 | $ | 8,535 | $ | 632 | $ | 11,027 | $ | 15,568 | $ | 711,639 | $ | 13,563 | $ | 740,770 |
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
|
$ | 358 | $ | 1,805 | $ | - | $ | 2,163 | $ | 4,609 | $ | 209,932 | $ | 202 | $ | 214,743 | ||||||||||||||||
Multifamily real estate
|
- | 331 | - | 331 | 1,670 | 23,830 | 3,173 | 28,673 | ||||||||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||||||
Owner occupied
|
74 | 1,043 | - | 1,117 | 2,511 | 89,120 | 271 | 91,902 | ||||||||||||||||||||||||
Non-owner occupied
|
362 | 1,526 | - | 1,888 | 2,627 | 170,326 | 5,896 | 178,849 | ||||||||||||||||||||||||
Commercial and industrial
|
2,173 | 873 | - | 3,046 | 10,799 | 73,120 | 511 | 84,430 | ||||||||||||||||||||||||
Consumer
|
- | 244 | - | 244 | - | 28,128 | - | 28,128 | ||||||||||||||||||||||||
All other
|
375 | 1,824 | 500 | 2,699 | 4,271 | 69,133 | 4,496 | 77,900 | ||||||||||||||||||||||||
Total
|
$ | 3,342 | $ | 7,646 | $ | 500 | $ | 11,488 | $ | 26,487 | $ | 663,589 | $ | 14,549 | $ | 704,625 |
Unpaid Principal
Balance
|
Recorded
Investment
|
Allowance for Loan Losses
Allocated
|
||||||||||
With no related allowance recorded:
|
||||||||||||
Residential real estate
|
$ | 1,513 | $ | 1,314 | $ | - | ||||||
Multifamily real estate
|
4,449 | 3,051 | - | |||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
2,601 | 1,986 | - | |||||||||
Non owner occupied
|
1,861 | 1,184 | - | |||||||||
Commercial and industrial
|
809 | 49 | - | |||||||||
All other
|
3,185 | 3,167 | - | |||||||||
14,418 | 10,751 | - | ||||||||||
With an allowance recorded:
|
||||||||||||
Residential real estate
|
$ | 1,668 | $ | 1,656 | $ | 138 | ||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
515 | 515 | 170 | |||||||||
Non owner occupied
|
810 | 790 | 362 | |||||||||
Commercial and industrial
|
5,543 | 4,604 | 1,220 | |||||||||
All other
|
12,132 | 4,735 | 602 | |||||||||
20,668 | 12,300 | 2,492 | ||||||||||
Total
|
$ | 35,086 | $ | 23,051 | $ | 2,492 | ||||||
Unpaid Principal
Balance
|
Recorded
Investment
|
Allowance for Loan Losses
Allocated
|
||||||||||
With no related allowance recorded:
|
||||||||||||
Residential real estate
|
$ | 1,886 | $ | 1,714 | $ | - | ||||||
Multifamily real estate
|
6,332 | 4,533 | - | |||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
2,876 | 2,196 | - | |||||||||
Non owner occupied
|
3,912 | 2,916 | - | |||||||||
Commercial and industrial
|
2,031 | 837 | - | |||||||||
All other
|
3,426 | 3,427 | - | |||||||||
20,463 | 15,623 | - | ||||||||||
With an allowance recorded:
|
||||||||||||
Residential real estate
|
$ | 3,118 | $ | 3,097 | $ | 358 | ||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
586 | 586 | 74 | |||||||||
Non owner occupied
|
809 | 789 | 362 | |||||||||
Commercial and industrial
|
10,771 | 10,473 | 2,173 | |||||||||
All other
|
5,517 | 5,340 | 875 | |||||||||
20,801 | 20,285 | 3,842 | ||||||||||
Total
|
$ | 41,264 | $ | 35,908 | $ | 3,842 | ||||||
Year ended Dec 31, 2013
|
Year ended Dec 31, 2012
|
Year ended Dec 31, 2011
|
||||||||||||||||
Loan Class
|
Average Recorded Investment
|
Interest Income Recognized
|
Cash Basis Interest Recognized
|
Average Recorded Investment
|
Interest Income Recognized
|
Cash Basis Interest Recognized
|
Average Recorded Investment
|
Interest Income Recognized
|
Cash Basis Interest Recognized
|
|||||||||
Residential real estate
|
$ 4,069
|
$ 180
|
$ 171
|
$ 8,887
|
$ 518
|
$ 516
|
$ 2,227
|
$ 84
|
$ 81
|
|||||||||
Multifamily real estate
|
3,810
|
847
|
845
|
6,143
|
1,408
|
1,406
|
8,428
|
150
|
151
|
|||||||||
Commercial real estate:
|
||||||||||||||||||
Owner occupied
|
2,602
|
168
|
141
|
7,195
|
1,025
|
1,028
|
12,653
|
1,083
|
1,082
|
|||||||||
Non-owner occupied
|
2,509
|
9
|
9
|
9,785
|
73
|
79
|
11,417
|
113
|
84
|
|||||||||
Commercial and industrial
|
8,425
|
47
|
47
|
10,052
|
427
|
417
|
7,196
|
217
|
211
|
|||||||||
Consumer
|
-
|
-
|
-
|
29
|
2
|
2
|
43
|
5
|
5
|
|||||||||
All other
|
8,796
|
273
|
273
|
7,599
|
1,019
|
968
|
11,755
|
184
|
188
|
|||||||||
Total
|
$30,211
|
$ 1,524
|
$ 1,486
|
$49,690
|
$ 4,472
|
$ 4,416
|
$53,719
|
$ 1,836
|
$ 1,802
|
December 31, 2013
|
TDR’s on
Non-accrual
|
Other
TDR’s
|
Total
TDR’s
|
|||||||||
Residential real estate
|
$ | 23 | $ | 296 | $ | 319 | ||||||
Commercial real estate
|
||||||||||||
Non owner occupied
|
- | 506 | 506 | |||||||||
Commercial and industrial
|
- | 831 | 831 | |||||||||
Consumer
|
- | 5 | 5 | |||||||||
All other
|
- | 2,017 | 2,017 | |||||||||
Total
|
$ | 23 | $ | 3,655 | $ | 3,678 |
December 31, 2012
|
TDR’s on
Non-accrual
|
Other
TDR’s
|
Total
TDR’s
|
|||||||||
Residential real estate
|
$ | 1,020 | $ | 240 | $ | 1,260 | ||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
- | 4,224 | 4,224 | |||||||||
Non owner occupied
|
- | 4,920 | 4,920 | |||||||||
Commercial and industrial
|
2 | 2,525 | 2,527 | |||||||||
All other
|
- | 2,197 | 2,197 | |||||||||
Total
|
$ | 1,022 | $ | 14,106 | $ | 15,128 |
Year ended December 31, 2013
|
Year ended December 31, 2012
|
|||||||||||||||||||||||
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
|
||||||||||||||||||||||||
Non-owner occupied
|
- | $ | - | $ | - | 1 | $ | 519 | $ | 519 | ||||||||||||||
Commercial and industrial
|
- | - | - | 1 | 1,809 | 1,809 | ||||||||||||||||||
All other
|
1 | 16 | 16 | 1 | 190 | 190 | ||||||||||||||||||
Total
|
1 | $ | 16 | $ | 16 | 3 | $ | 2,518 | $ | 2,518 |
Loan Class
|
Pass
|
Special Mention
|
Substandard
|
Doubtful
|
Total Loans
|
|||||||||||||||
Residential real estate
|
$ | 202,789 | $ | 6,204 | $ | 7,065 | $ | 23 | $ | 216,081 | ||||||||||
Multifamily real estate
|
34,487 | 918 | 3,051 | - | 38,456 | |||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
79,694 | 7,431 | 3,348 | 66 | 90,539 | |||||||||||||||
Non-owner occupied
|
196,338 | 8,569 | 3,849 | - | 208,756 | |||||||||||||||
Commercial and industrial
|
78,205 | 2,269 | 4,753 | 74 | 85,301 | |||||||||||||||
Consumer
|
24,772 | 204 | 137 | - | 25,113 | |||||||||||||||
All other
|
62,180 | 5,947 | 8,285 | 112 | 76,524 | |||||||||||||||
Total
|
$ | 678,465 | $ | 31,542 | $ | 30,488 | $ | 275 | $ | 740,770 |
Loan Class
|
Pass
|
Special Mention
|
Substandard
|
Doubtful
|
Total Loans
|
|||||||||||||||
Residential real estate
|
$ | 195,210 | $ | 10,115 | $ | 9,327 | $ | 91 | $ | 214,743 | ||||||||||
Multifamily real estate
|
19,747 | 1,912 | 7,014 | - | 28,673 | |||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
74,529 | 8,994 | 8,379 | - | 91,902 | |||||||||||||||
Non-owner occupied
|
163,337 | 7,685 | 7,827 | - | 178,849 | |||||||||||||||
Commercial and industrial
|
70,180 | 2,739 | 11,508 | 3 | 84,430 | |||||||||||||||
Consumer
|
27,931 | 123 | 74 | - | 28,128 | |||||||||||||||
All other
|
64,009 | 814 | 12,386 | 691 | 77,900 | |||||||||||||||
Total
|
$ | 614,943 | $ | 32,382 | $ | 56,515 | $ | 785 | $ | 704,625 |
2013
|
2012
|
|||||||
Land and improvements
|
$ | 3,614 | $ | 3,614 | ||||
Buildings and leasehold improvements
|
13,695 | 13,454 | ||||||
Furniture and equipment
|
7,646 | 8,974 | ||||||
Assets purchased not yet placed in service
|
2,292 | - | ||||||
27,247 | 26,042 | |||||||
Less: accumulated depreciation
|
(9,449 | ) | (10,090 | ) | ||||
$ | 17,798 | $ | 15,952 | |||||
2014
|
$ | 904 | ||
2015
|
793 | |||
2016
|
764 | |||
2017
|
738 | |||
2018 and thereafter
|
278 | |||
$ | 3,477 |
2013
|
2012
|
2011
|
||||||||||
Beginning of year
|
$ | 29,875 | $ | 29,875 | $ | 29,875 | ||||||
Acquired goodwill and other adjustments
|
- | - | - | |||||||||
Impairment
|
- | - | - | |||||||||
End of year
|
$ | 29,875 | $ | 29,875 | $ | 29,875 |
2013
|
2012
|
|||||||||||||||
Gross Carrying
Amount
|
Accumulated Amortization
|
Gross Carrying
Amount
|
Accumulated Amortization
|
|||||||||||||
Core deposit intangible
|
$ | 5,355 | $ | (3,234 | ) | $ | 5,355 | $ | (2,634 | ) |
2014
|
575 | |||
2015
|
575 | |||
2016
|
457 | |||
2017
|
353 | |||
2018 and thereafter
|
161 | |||
$ | 2,121 |
2014
|
$ | 221,964 | ||
2015
|
62,099 | |||
2016
|
24,513 | |||
2017
|
14,047 | |||
2018 and thereafter
|
8,736 | |||
$ | 331,359 |
2013
|
2012
|
|||||||
Year-end balance
|
$ | 11,319 | $ | 26,102 | ||||
Average balance during the year
|
$ | 13,486 | $ | 20,944 | ||||
Average interest rate during the year
|
0.25 | % | 0.42 | % | ||||
Maximum month-end balance during the year
|
$ | 22,988 | $ | 26,102 | ||||
Weighted average interest rate at year-end
|
0.25 | % | 0.23 | % | ||||
2014
|
$ | 2,162 | ||
2015
|
2,162 | |||
2016
|
2,162 | |||
2017
|
2,162 | |||
2018
|
2,162 | |||
Thereafter
|
2,990 | |||
$ | 13,800 | |||
2013
|
2012
|
2011
|
||||||||||
Current
|
$ | 5,509 | $ | 5,105 | $ | 376 | ||||||
Deferred
|
1,895 | 568 | 4,099 | |||||||||
Change in valuation allowance
|
- | - | (675 | ) | ||||||||
Provision for income taxes
|
$ | 7,404 | $ | 5,673 | $ | 3,800 | ||||||
2013
|
2012
|
|||||||
Deferred tax assets
|
||||||||
Allowance for loan losses
|
$ | 4,016 | $ | 4,181 | ||||
Purchase accounting adjustments
|
2,611 | 3,745 | ||||||
Net operating loss carryforward
|
1,048 | 1,569 | ||||||
Write-downs of other real estate owned
|
893 | 748 | ||||||
Taxable income on non-accrual loans
|
2,053 | 1,955 | ||||||
Security writedown
|
- | 250 | ||||||
Capital loss carryforward
|
196 | - | ||||||
Accrued expenses
|
172 | 131 | ||||||
Unrealized loss on investment securities
|
322 | - | ||||||
Other
|
19 | 11 | ||||||
Total deferred tax assets
|
11,330 | 12,590 | ||||||
Deferred tax liabilities
|
||||||||
Amortization of intangibles
|
$ | (4,615 | ) | $ | (4,405 | ) | ||
Depreciation
|
(1,101 | ) | (1,027 | ) | ||||
Federal Home Loan Bank dividends
|
(377 | ) | (377 | ) | ||||
Deferred loan fees
|
(567 | ) | (548 | ) | ||||
Unrealized gain on investment securities
|
- | (3,388 | ) | |||||
Other
|
(71 | ) | (61 | ) | ||||
Total deferred tax liabilities
|
(6,731 | ) | (9,806 | ) | ||||
Valuation allowance on deferred tax assets
|
(160 | ) | (160 | ) | ||||
Net deferred taxes
|
$ | 4,439 | $ | 2,624 | ||||
2013
|
2012
|
2011
|
||||||||||||||||||||||
U.S. federal income tax rate
|
$ | 7,015 | 34.0 | % | $ | 5,439 | 34.0 | % | $ | 3,729 | 34.0 | % | ||||||||||||
Changes from the statutory rate
|
||||||||||||||||||||||||
Impact of graduated federal tax rate
|
72 | 0.4 | 26 | 0.2 | - | - | ||||||||||||||||||
State income taxes, net
|
439 | 2.1 | 376 | 2.4 | 1,220 | 11.1 | ||||||||||||||||||
Tax-exempt interest income
|
(149 | ) | (0.7 | ) | (173 | ) | (1.1 | ) | (194 | ) | (1.8 | ) | ||||||||||||
Non-deductible interest expense
related to carrying tax-exempt
interest earning assets
|
9 | 0.0 | 12 | 0.1 | 8 | 0.1 | ||||||||||||||||||
Non-deductible stock compensation
expense
|
57 | 0.3 | 62 | 0.4 | 36 | 0.3 | ||||||||||||||||||
Tax credits, net
|
(49 | ) | (0.2 | ) | (49 | ) | (0.3 | ) | (49 | ) | (0.4 | ) | ||||||||||||
Change in valuation
allowance, net
|
- | - | - | - | (675 | ) | (6.1 | ) | ||||||||||||||||
Other
|
10 | 0.0 | (20 | ) | (0.2 | ) | (275 | ) | (2.5 | ) | ||||||||||||||
$ | 7,404 | 35.9 | % | $ | 5,673 | 35.5 | % | $ | 3,800 | 34.7 | % | |||||||||||||
2013
|
2012
|
2011
|
||||||||||
Risk-free interest rate
|
1.96 | % | 2.31 | % | 3.58 | % | ||||||
Expected option life (yrs)
|
10.00 | 10.00 | 10.00 | |||||||||
Expected stock price volatility
|
35.24 | % | 34.93 | % | 30.01 | % | ||||||
Dividend yield
|
3.86 | % | 2.68 | % | 4.03 | % | ||||||
Weighted average fair value of
options granted during the year
|
$ | 2.85 | $ | 2.34 | $ | 1.63 |
----------2013----------
|
----------2012----------
|
----------2011----------
|
||||||||||||||||||||||
Options
|
Weighted
Average
Exercise
Price
|
Options
|
Weighted
Average
Exercise
Price
|
Options
|
Weighted
Average
Exercise
Price
|
|||||||||||||||||||
Outstanding at beginning of year
|
392,366 | $ | 9.24 | 350,949 | $ | 9.69 | 255,649 | $ | 10.77 | |||||||||||||||
Grants
|
52,900 | 11.39 | 105,700 | 7.47 | 102,000 | 6.95 | ||||||||||||||||||
Exercises
|
(78,584 | ) | 7.77 | (25,550 | ) | 7.52 | - | - | ||||||||||||||||
Forfeitures or expired
|
(12,401 | ) | 7.90 | (38,733 | ) | 9.61 | (6,700 | ) | 9.10 | |||||||||||||||
Outstanding at year-end
|
354,281 | $ | 9.84 | 392,366 | $ | 9.24 | 350,949 | $ | 9.69 | |||||||||||||||
Exercisable at year-end
|
212,731 | $ | 10.55 | 220,646 | $ | 10.68 | 206,727 | $ | 11.36 | |||||||||||||||
Weighted average remaining life
|
6.1 | 6.6 | 6.4 | |||||||||||||||||||||
- - - - - - - - Outstanding - - - - - - - - | - - - - - - - - Currently Exercisable - - - - - - - - | ||||||||||||||||||||||||||||
Range of Exercise Prices
|
Number
|
Weighted Average Exercise Price
|
Aggregate Intrinsic Value
|
Number
|
Weighted Average Remaining Contractual Life
|
Weighted Average Exercise Price
|
Aggregate Intrinsic Value
|
||||||||||||||||||||||
$ 6.50 to $10.00 | 197,248 | $ | 7.40 | $ | 1,331 | 106,798 | 6.5 | $ | 7.48 | $ | 712 | ||||||||||||||||||
$ 10.01 to $12.50 | 72,933 | 11.46 | 196 | 21,833 | 1.1 | 11.62 | 55 | ||||||||||||||||||||||
$ 12.51 to $15.00 | 60,600 | 13.46 | 44 | 60,600 | 3.7 | 13.46 | 44 | ||||||||||||||||||||||
$ 15.01 to $17.50 | 23,500 | 16.00 | - | 23,500 | 2.1 | 16.00 | - | ||||||||||||||||||||||
Outstanding at Dec 31, 2013
|
354,281 | 9.84 | $ | 1,571 | 212,731 | 4.7 | 10.55 | $ | 811 | ||||||||||||||||||||
2013
|
2012
|
2011
|
||||||||||
Basic earnings per share
|
||||||||||||
Income available to common stockholders
|
$ | 12,570 | $ | 10,155 | $ | 5,947 | ||||||
Weighted average common shares outstanding
|
7,997,047 | 7,940,892 | 7,937,143 | |||||||||
Earnings per share
|
$ | 1.57 | $ | 1.28 | $ | 0.75 | ||||||
Diluted earnings per share
|
||||||||||||
Income available to common stockholders
|
$ | 12,570 | $ | 10,155 | $ | 5,947 | ||||||
Weighted average common shares outstanding
|
7,997,047 | 7,940,892 | 7,937,143 | |||||||||
Add dilutive effects of potential additional common stock
|
448,202 | 240,611 | 97,936 | |||||||||
Weighted average common and dilutive potential c
ommon shares outstanding
|
8,445,249 | 8,181,503 | 8,035,079 | |||||||||
Earnings per share assuming dilution
|
$ | 1.49 | $ | 1.24 | $ | 0.74 | ||||||
Fair Value Measurements at December 31, 2013 Using
|
||||||||||||||||||||
Carrying
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
Financial assets
|
||||||||||||||||||||
Cash and due from banks
|
$ | 63,984 | $ | 63,984 | $ | - | $ | - | $ | 63,984 | ||||||||||
Federal funds sold
|
12,777 | 12,777 | - | - | 12,777 | |||||||||||||||
Securities available for sale
|
218,066 | - | 217,926 | 140 | 218,066 | |||||||||||||||
Loans held for sale
|
77 | - | - | 77 | 77 | |||||||||||||||
Loans, net
|
729,743 | - | - | 725,588 | 725,588 | |||||||||||||||
Federal Home Loan Bank stock
|
4,183 | n/a | n/a | n/a | n/a | |||||||||||||||
Interest receivable
|
3,132 | - | 593 | 2,539 | 3,132 | |||||||||||||||
Financial liabilities
|
||||||||||||||||||||
Deposits
|
$ | (924,023 | ) | $ | (592,664 | ) | $ | (332,475 | ) | $ | - | $ | (925,139 | ) | ||||||
Securities sold under agreements
to repurchase
|
(11,319 | ) | - | (11,319 | ) | - | (11,319 | ) | ||||||||||||
Other borrowed funds
|
(13,800 | ) | - | (13,811 | ) | - | (13,811 | ) | ||||||||||||
Interest payable
|
(383 | ) | (5 | ) | (378 | ) | - | (383 | ) | |||||||||||
Fair Value Measurements at December 31, 2012 Using
|
||||||||||||||||||||
Carrying
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
Financial assets
|
||||||||||||||||||||
Cash and due from banks
|
$ | 66,009 | $ | 66,009 | $ | - | $ | - | $ | 66,009 | ||||||||||
Federal funds sold
|
4,236 | 4,236 | - | - | 4,236 | |||||||||||||||
Securities available for sale
|
283,975 | - | 283,835 | 140 | 283,975 | |||||||||||||||
Loans held for sale
|
200 | - | - | 200 | 200 | |||||||||||||||
Loans, net
|
693,137 | - | - | 691,519 | 691,519 | |||||||||||||||
Federal Home Loan Bank stock
|
4,181 | n/a | n/a | n/a | n/a | |||||||||||||||
Interest receivable
|
3,403 | - | 827 | 2,576 | 3,403 | |||||||||||||||
Financial liabilities
|
||||||||||||||||||||
Deposits
|
$ | (930,583 | ) | $ | (577,274 | ) | $ | (356,730 | ) | $ | - | $ | (934,004 | ) | ||||||
Securities sold under agreements
to repurchase
|
(26,102 | ) | - | (26,102 | ) | - | (26,102 | ) | ||||||||||||
Other borrowed funds
|
(16,049 | ) | - | (16,022 | ) | - | (16,022 | ) | ||||||||||||
Interest payable
|
(489 | ) | (6 | ) | (483 | ) | - | (489 | ) | |||||||||||
Fair Value Measurements at
December 31, 2013 Using:
|
||||||||||||||||
Carrying Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
Securities available for sale
|
||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||
U. S. agency MBS - residential
|
$ | 27,823 | $ | - | $ | 27,823 | $ | - | ||||||||
U. S. agency CMO’s
|
176,722 | - | 176,722 | - | ||||||||||||
Total mortgage-backed securities of
government sponsored agencies
|
204,545 | - | 204,545 | - | ||||||||||||
U. S. government sponsored
agency securities
|
6,981 | - | 6,981 | - | ||||||||||||
Obligations of states and political
subdivisions
|
6,540 | - | 6,400 | 140 | ||||||||||||
Total securities available for sale
|
$ | 218,066 | $ | - | $ | 217,926 | $ | 140 | ||||||||
Fair Value Measurements at
December 31, 2012 Using:
|
||||||||||||||||
Carrying Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
Securities available for sale
|
||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||
U. S. agency MBS - residential
|
$ | 37,100 | $ | - | $ | 37,100 | $ | - | ||||||||
U. S. agency CMO’s - residential
|
212,847 | - | 212,847 | - | ||||||||||||
Total mortgage-backed securities of
government sponsored agencies
|
249,947 | - | 249,947 | - | ||||||||||||
U. S. government sponsored
agency securities
|
22,244 | - | 22,244 | - | ||||||||||||
Obligations of states and political
subdivisions
|
7,860 | - | 7,720 | 140 | ||||||||||||
Other securities
|
3,924 | - | 3,924 | - | ||||||||||||
Total securities available for sale
|
$ | 283,975 | $ | - | $ | 283,835 | $ | 140 | ||||||||
Securities Available-for-sale
|
||||||||
Year Ended
Dec. 31, 2013
|
Year Ended
Dec. 31, 2012
|
|||||||
Balance of recurring Level 3 assets at beginning of period
|
$ | 140 | $ | 140 | ||||
Total gains or losses (realized/unrealized):
|
||||||||
Included in earnings – realized
|
- | - | ||||||
Included in earnings – unrealized
|
- | - | ||||||
Included in other comprehensive income
|
- | - | ||||||
Purchases, sales, issuances and settlements, net
|
- | - | ||||||
Transfers in and/or out of Level 3
|
- | - | ||||||
Balance of recurring Level 3 assets at year-end
|
$ | 140 | $ | 140 |
Fair Value Measurements at December 31, 2013 Using
|
||||||||||||||||
Dec 31, 2013
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs (Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
Assets:
|
||||||||||||||||
Impaired loans:
|
||||||||||||||||
Residential Real Estate
|
$ | 1,518 | $ | - | $ | - | $ | 1,518 | ||||||||
Commercial Real Estate
|
||||||||||||||||
Owner Occupied
|
346 | - | - | 346 | ||||||||||||
Non-owner Occupied
|
428 | - | - | 428 | ||||||||||||
Commercial and Industrial
|
3,384 | - | - | 3,384 | ||||||||||||
All Other
|
4,133 | - | - | 4,133 | ||||||||||||
Total impaired loans
|
9,809 | $ | - | $ | - | $ | 9,809 | |||||||||
Other real estate owned:
|
||||||||||||||||
Commercial Real Estate
|
||||||||||||||||
Non-owner Occupied
|
290 | - | - | 290 | ||||||||||||
All Other
|
8,496 | - | - | 8,496 | ||||||||||||
Total OREO
|
$ | 8,786 | $ | - | $ | - | $ | 8,786 |
December 31, 2013
|
Valuation Techniques
|
Unobservable Inputs
|
Range (Weighted Avg)
|
||||||
Impaired loans:
|
|||||||||
Residential Real Estate
|
$ | 1,518 |
sales comparison
|
adjustment for differences between the comparable sales
|
0.8%-63.5% (11.9%) | ||||
Commercial Real Estate
|
|||||||||
Owner Occupied
|
346 |
sales comparison
|
adjustment for limited salability of specialized property
|
62.5%-70.0% (64.0%) | |||||
Non-owner Occupied
|
428 |
sales comparison
|
adjustment for limited salability of specialized property
|
50.6%-50.6% (50.6%) | |||||
Commercial and Industrial
|
3,384 |
sales comparison
|
adjustment for limited salability of specialized property
|
25.0%-65.5% (57.8%) | |||||
All Other
|
4,133 |
sales comparison
|
adjustment for percentage of completion of construction
|
57.6%-99.3% (57.7%) | |||||
Total impaired loans
|
9,809 | ||||||||
Other real estate owned:
|
|||||||||
Commercial Real Estate
|
|||||||||
Non-owner Occupied
|
290 |
sales comparison
|
adjustment for differences between the comparable sales
|
42.7%-42.7% (42.7%) | |||||
All Other
|
8,496 |
sales comparison
|
adjustment for estimated realizable value
|
9.5%-24.6% (12.5%) | |||||
Total OREO
|
$ | 8,786 |
Fair Value Measurements at December 31, 2012 Using
|
||||||||||||||||
Dec 31, 2012
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs (Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
Assets:
|
||||||||||||||||
Impaired loans:
|
||||||||||||||||
Residential Real Estate
|
$ | 2,739 | $ | - | $ | - | $ | 2,739 | ||||||||
Commercial Real Estate
|
||||||||||||||||
Owner Occupied
|
512 | - | - | 512 | ||||||||||||
Non-owner Occupied
|
427 | - | - | 427 | ||||||||||||
Commercial and Industrial
|
8,300 | - | - | 8,300 | ||||||||||||
All Other
|
4,465 | - | - | 4,465 | ||||||||||||
Total impaired loans
|
16,443 | $ | - | $ | - | $ | 16,443 | |||||||||
Other real estate owned:
|
||||||||||||||||
Residential Real Estate
|
$ | 255 | $ | - | $ | - | $ | 255 | ||||||||
Commercial Real Estate
|
||||||||||||||||
Owner Occupied
|
250 | - | - | 250 | ||||||||||||
Non-owner Occupied
|
1,031 | - | - | 1,031 | ||||||||||||
All Other
|
6,432 | - | - | 6,432 | ||||||||||||
Total OREO
|
$ | 7,968 | $ | - | $ | - | $ | 7,968 |
December 31, 2012
|
Valuation Techniques
|
Unobservable Inputs
|
Range (Weighted Avg)
|
||||||
Impaired loans:
|
|||||||||
Residential Real Estate
|
$ | 2,739 |
sales comparison
|
adjustment for differences between the comparable sales
|
0.8%-76.8% (10.5%) | ||||
Commercial Real Estate
|
|||||||||
Owner Occupied
|
512 |
sales comparison
|
adjustment for limited salability of specialized property
|
40.0%-70.0% (44.1%) | |||||
Non-owner Occupied
|
427 |
sales comparison
|
adjustment for limited salability of specialized property
|
59.0%-59.0% (59.0%) | |||||
Commercial and Industrial
|
8,300 |
sales comparison
|
adjustment for limited salability of specialized property
|
0.0%-70.0% (44.3%) | |||||
All Other
|
4,465 |
sales comparison
|
adjustment for percentage of completion of construction
|
64.0%-91.4% (64.8%) | |||||
Total impaired loans
|
16,443 | ||||||||
Other real estate owned:
|
|||||||||
Residential Real Estate
|
$ | 255 |
sales comparison
|
adjustment for differences between the comparable sales
|
0.0%-62.3% (44.1%) | ||||
Commercial Real Estate
|
|||||||||
Owner Occupied
|
250 |
sales comparison
|
adjustment for estimated realizable value
|
0.0%-17.9% (7.2%) | |||||
Non-owner Occupied
|
1,031 |
sales comparison
|
adjustment for differences between the comparable sales
|
82.7%-82.7% (82.7%) | |||||
All Other
|
6,432 |
sales comparison
|
adjustment for estimated realizable value
|
4.7%-16.6% (12.7%) | |||||
Total OREO
|
$ | 7,968 |
2013
|
2012
|
|||||||
Standby letters of credit
|
$ | 6,084 | $ | 5,518 | ||||
Commitments to extend credit
|
||||||||
Fixed
|
$ | 12,040 | $ | 7,830 | ||||
Variable
|
52,576 | 43,256 | ||||||
Accumulated Other Comprehensive Income
|
Unrealized Gain/(Loss) on Securities Available for Sale
|
|||
Balance, December 31, 2012
|
$ | 6,576 | ||
Reclassification adjustments to net income:
|
||||
Realized gain on disposition of securities
|
(1,413 | ) | ||
Provision for income taxes
|
481 | |||
Unrealized losses arising during the period, net of tax
|
(6,269 | ) | ||
Balance, December 31, 2013
|
$ | (625 | ) | |
To Be Well Capitalized
|
||||||||||||||||||||||||
For Capital
|
Under Prompt Corrective
|
|||||||||||||||||||||||
Actual
|
Adequacy Purposes
|
Action Provisions
|
||||||||||||||||||||||
2013
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
Total Capital (to Risk-Weighted Assets):
|
||||||||||||||||||||||||
Consolidated
(1)
|
$ | 128,756 | 18.2 | % | $ | 56,685 | 8 | % | $ | 70,857 | 10 | % | ||||||||||||
Premier Bank, Inc.
|
95,508 | 19.2 | 39,738 | 8 | 49,672 | 10 | ||||||||||||||||||
Citizens Deposit Bank
|
37,158 | 17.7 | 16,819 | 8 | 21,023 | 10 | ||||||||||||||||||
Tier I Capital (to Risk-Weighted Assets):
|
||||||||||||||||||||||||
Consolidated
(1)
|
$ | 119,872 | 16.9 | % | $ | 28,343 | 4 | % | $ | 42,514 | 6 | % | ||||||||||||
Premier Bank, Inc.
|
89,274 | 18.0 | 19,869 | 4 | 29,803 | 6 | ||||||||||||||||||
Citizens Deposit Bank
|
34,591 | 16.5 | 8,409 | 4 | 12,614 | 6 | ||||||||||||||||||
Tier I Capital (to Average Assets):
|
||||||||||||||||||||||||
Consolidated
(1)
|
$ | 119,872 | 11.0 | % | $ | 43,495 | 4 | % | $ | 54,369 | 5 | % | ||||||||||||
Premier Bank, Inc.
|
89,274 | 12.4 | 28,892 | 4 | 36,115 | 5 | ||||||||||||||||||
Citizens Deposit Bank
|
34,591 | 9.5 | 14,538 | 4 | 18,172 | 5 | ||||||||||||||||||
2012
|
||||||||||||||||||||||||
Total Capital (to Risk-Weighted Assets):
|
||||||||||||||||||||||||
Consolidated
(1)
|
$ | 118,262 | 17.4 | % | $ | 54,399 | 8 | % | $ | 67,999 | 10 | % | ||||||||||||
Premier Bank, Inc.
|
90,977 | 19.3 | 37,659 | 8 | 47,073 | 10 | ||||||||||||||||||
Citizens Deposit Bank
|
35,794 | 17.2 | 16,610 | 8 | 20,762 | 10 | ||||||||||||||||||
Tier I Capital (to Risk-Weighted Assets):
|
||||||||||||||||||||||||
Consolidated
(1)
|
$ | 109,725 | 16.1 | % | $ | 27,199 | 4 | % | $ | 40,799 | 6 | % | ||||||||||||
Premier Bank, Inc.
|
85,060 | 18.1 | 18,829 | 4 | 28,244 | 6 | ||||||||||||||||||
Citizens Deposit Bank
|
33,194 | 16.0 | 8,305 | 4 | 12,457 | 6 | ||||||||||||||||||
Tier I Capital (to Average Assets):
|
||||||||||||||||||||||||
Consolidated
(1)
|
$ | 109,725 | 10.0 | % | $ | 43,697 | 4 | % | $ | 54,621 | 5 | % | ||||||||||||
Premier Bank, Inc.
|
85,060 | 11.8 | 28,940 | 4 | 36,175 | 5 | ||||||||||||||||||
Citizens Deposit Bank
|
33,194 | 9.0 | 14,700 | 4 | 18,375 | 5 | ||||||||||||||||||
(1) Consolidated company is not subject to Prompt Corrective Action Provisions
|
||||||||||||||||||||||||
Condensed Balance Sheets
|
||||||||
December 31
|
||||||||
2013
|
2012
|
|||||||
ASSETS
|
||||||||
Cash
|
$ | 8,761 | $ | 6,130 | ||||
Investment in subsidiaries
|
151,019 | 152,885 | ||||||
Premises and equipment
|
207 | 191 | ||||||
Other assets
|
1,519 | 1,957 | ||||||
Total assets
|
$ | 161,506 | $ | 161,163 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Other liabilities
|
$ | 766 | $ | 818 | ||||
Other borrowed funds
|
13,800 | 16,049 | ||||||
Total liabilities
|
14,566 | 16,867 | ||||||
Stockholders’ equity
|
||||||||
Preferred stock
|
11,955 | 11,896 | ||||||
Common stock
|
73,589 | 72,849 | ||||||
Retained earnings
|
62,021 | 52,975 | ||||||
Accumulated other comprehensive income (loss)
|
(625 | ) | 6,576 | |||||
Total stockholders’ equity
|
146,940 | 144,296 | ||||||
Total liabilities and stockholders’ equity
|
$ | 161,506 | $ | 161,163 | ||||
Condensed Statement of Operations
|
||||||||||||
Years Ended December 31
|
||||||||||||
2013
|
2012
|
2011
|
||||||||||
Income
|
||||||||||||
Dividends from subsidiaries
|
$ | 9,675 | $ | 13,915 | $ | 6,165 | ||||||
Interest and dividend income
|
12 | 22 | 23 | |||||||||
Other income
|
1,327 | 1,201 | 1,132 | |||||||||
Total income
|
11,014 | 15,138 | 7,320 | |||||||||
Expenses
|
||||||||||||
Interest expense
|
650 | 754 | 852 | |||||||||
Salaries and employee benefits
|
2,387 | 2,318 | 1,952 | |||||||||
Professional fees
|
51 | 337 | 113 | |||||||||
Other expenses
|
1,020 | 1,053 | 1,079 | |||||||||
Total expenses
|
4,108 | 4,462 | 3,996 | |||||||||
Income before income taxes
and equity in undistributed income of subsidiaries
|
6,906 | 10,676 | 3,324 | |||||||||
Income tax (benefit)
|
(987 | ) | (1,144 | ) | (1,034 | ) | ||||||
Income before equity in undistributed income of subsidiaries
|
7,893 | 11,820 | 4,358 | |||||||||
Equity in undistributed income (excess distributions)
of subsidiaries
|
5,336 | (1,497 | ) | 2,810 | ||||||||
Net income
|
$ | 13,229 | $ | 10,323 | $ | 7,168 | ||||||
Condensed Statement of Cash Flows
|
||||||||||||
Years Ended December 31
|
||||||||||||
2013
|
2012
|
2011
|
||||||||||
Cash flows from operating activities
|
||||||||||||
Net income
|
$ | 13,229 | $ | 10,323 | $ | 7,168 | ||||||
Adjustments to reconcile net income to
net cash from operating activities
|
||||||||||||
Depreciation
|
64 | 57 | 70 | |||||||||
Stock compensation expense
|
169 | 181 | 106 | |||||||||
Gain from sales of assets
|
(11 | ) | - | - | ||||||||
Dividends in excess of net income of subsidiaries
|
- | 1,497 | - | |||||||||
Equity in undistributed earnings of subsidiaries
|
(5,336 | ) | - | (2,810 | ) | |||||||
Change in other assets
|
438 | 24 | 652 | |||||||||
Change in other liabilities
|
(51 | ) | 220 | (44 | ) | |||||||
Net cash from operating activities
|
8,502 | 12,302 | 5,142 | |||||||||
Cash flows from investing activities
|
||||||||||||
Cash from merger of subsidiaries
|
- | - | 391 | |||||||||
Purchases of fixed assets, net of proceeds from asset sales
|
(69 | ) | (108 | ) | (81 | ) | ||||||
Net cash from investing activities
|
(69 | ) | (108 | ) | 310 | |||||||
Cash flows from financing activities
|
||||||||||||
Cash dividends on preferred stock
|
(600 | ) | (984 | ) | (1,390 | ) | ||||||
Cash dividends paid to shareholders
|
(3,524 | ) | (1,749 | ) | - | |||||||
Repurchase of preferred stock
|
- | (9,237 | ) | - | ||||||||
Proceeds from stock option exercises
|
571 | 192 | - | |||||||||
Payments on other borrowed funds
|
(2,249 | ) | (2,081 | ) | (2,047 | ) | ||||||
Net cash from financing activities
|
(5,802 | ) | (13,859 | ) | (3,437 | ) | ||||||
Net change in cash and cash equivalents
|
2,631 | (1,665 | ) | 2,015 | ||||||||
Cash and cash equivalents at beginning of year
|
6,130 | 7,795 | 5,780 | |||||||||
Cash and cash equivalents at end of year
|
$ | 8,761 | $ | 6,130 | $ | 7,795 | ||||||
Earnings Per Share | ||||||||||||||||||||
Interest
Income
|
Net Interest
Income
|
Net
Income
|
Basic
|
Diluted
|
||||||||||||||||
2013
|
||||||||||||||||||||
First Quarter
|
$ | 11,415 | $ | 10,140 | $ | 2,504 | $ | 0.29 | $ | 0.28 | ||||||||||
Second Quarter
|
12,317 | 11,093 | 3,109 | 0.37 | 0.35 | |||||||||||||||
Third Quarter
|
13,192 | 12,027 | 3,926 | 0.47 | 0.44 | |||||||||||||||
Fourth Quarter
|
11,546 | 10,435 | 3,690 | 0.44 | 0.41 | |||||||||||||||
2012
|
||||||||||||||||||||
First Quarter
|
$ | 14,216 | $ | 12,418 | $ | 2,830 | $ | 0.32 | $ | 0.31 | ||||||||||
Second Quarter
|
11,956 | 10,308 | 2,092 | 0.23 | 0.22 | |||||||||||||||
Third Quarter
|
12,580 | 11,017 | 2,411 | 0.38 | 0.37 | |||||||||||||||
Fourth Quarter
|
11,683 | 10,256 | 2,990 | 0.36 | 0.34 |
Item 10, 11, 12, 13 and 14. Directors, Executive Officers and Corporate Governance; Executive Compensation; Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters; Certain Relationships and Related Transactions, and Director Independence; and Principal Accountant Fees and Services
|
Exhibit
Number
|
Description of Document
|
|
2.1 |
Definitive Merger Agreement between Premier Financial Bancorp, Inc. and Citizens First Bank, Inc. dated October 24, 2007, filed as Exhibit 10.1 to form 8-K filed on October 25, 2007 is incorporated herein by reference.
|
|
2.2 |
Definitive Merger Agreement between Premier Financial Bancorp, Inc. and Traders Bankshares, Inc. dated November 27, 2007, filed as Exhibit 10.1 to form 8-K filed on November 28, 2007 is incorporated herein by reference.
|
|
2.3 |
Definitive Merger Agreement between Premier Financial Bancorp, Inc. and Abigail Adams National Bancorp, Inc. dated December 30, 2008, filed as Exhibit 2.1 to form 8-K filed on January 2, 2009 is incorporated herein by reference.
|
|
2.4 |
Branch Purchase Agreement between Integra Bank National Association and Citizens Deposit Bank and Trust dated April 29, 2010, filed as Exhibit 2.1 to Form 8-K filed on April 30, 2010 is incorporated herein by reference.
|
|
2.5 |
Loan Purchase Agreement between Integra Bank National Association and Citizens Deposit Bank and Trust dated April 29, 2010, filed as Exhibit 2.2 to Form 8-K filed on April 30, 2010 is incorporated herein by reference.
|
|
2.6 | ||
3.1(a) |
Form of Articles of Incorporation of registrant (included as Exhibit 3.1 to registrant’s Registration Statement on Form S-1, Registration No. 333-1702, filed on February 28, 1996 with the Commission and incorporated herein by reference).
|
Exhibit
Number
|
Description of Document
|
||
3.1(b) |
Form of Articles of Amendment to Articles of Incorporation effective March 15, 1996 re: amendment to Article IV (included as Exhibit 3.2 to registrant’s Amendment No. 1 to Registration Statement on Form S-1, Registration No. 333-1702, filed on March 25, 1996 with the Commission and incorporated herein by reference.
|
||
3.1(c) |
Articles of Amendment to Articles of Incorporation effective September 3, 2009 re: increase in authorized common shares (included as Exhibit 3.1 to Form 8-K filed on September 9, 2009) is incorporated herein by reference.
|
||
3.1(d) |
Articles of Amendment to Articles of Incorporation effective September 29, 2009 evidencing adoption of amendments by the Board of Directors of registrant to Article IV of Articles of Incorporation to establish express terms of Fixed Rate Cumulative Perpetual Preferred Shares, Series A, each without par value, of registrant (included as Exhibit 3.1(i) to Form 8-K filed on October 2, 2009) is incorporated herein by reference.
|
||
3.1(e) |
Articles of Incorporation of registrant (reflecting amendments through September 29, 2009) [For SEC reporting compliance purposes only – not filed with Kentucky Secretary of State], filed as Exhibit 3.1(e) to Form 10-K filed on March 30, 2010 is incorporated herein by reference.
|
||
3.2 |
Bylaws of registrant, as amended through September 23, 2009 (filed as Exhibit 3.1(ii)) to Form 8-K filed September 23, 2009 is incorporated herein by reference.
|
||
4.1 |
Letter Agreement, dated October 2, 2009, including Securities Purchase Agreement Standard Terms attached thereto as Exhibit A, between registrant and the United States Department of the Treasury (filed as Exhibit 10.1 to Form 8-K filed October 7, 2009) is incorporated herein by reference. [NOTE: Annex A to Securities Purchase Agreement is not included herewith; filed as Exhibit 3.1(i) to Current Report on Form 8-K filed by registrant on October 2, 2009 and incorporated herein by reference.]
|
||
4.2 |
Warrant to purchase 628,588 Shares of Common Stock (common shares) of registrant issued to the United States Department of the Treasury on October 2, 2009 (filed as Exhibit 4.1 to Form 8-K filed October 7, 2009) is incorporated herein by reference.
|
||
*** 10.1 |
Premier Financial Bancorp, Inc.'s 2002 Employee Stock Ownership Incentive Plan, filed as Annex A to definitive proxy statement dated May 17, 2002, filed on April 30, 2002 with the Commission, is incorporated herein by reference.
|
||
*** 10.2 |
Form of Stock Option Agreement pursuant to 2002 Employee Stock Ownership Incentive Plan, filed as Exhibit 10.1 to form 8-K filed January 24, 2005, is incorporated herein by reference.
|
||
10.3 |
Loan Agreement between Premier Financial Bancorp, Inc. and First Guaranty Bank, Hammond, Louisiana, filed as Exhibit 10.1 to form 8-K filed May 1, 2008, is incorporated herein by reference.
|
Exhibit
Number
|
Description of Document
|
|
10.4 |
Promissory Note to First Guaranty Bank, Hammond, Louisiana, filed as Exhibit 10.2 to form 8-K filed May 1, 2008, is incorporated herein by reference.
|
|
*** 10.5 |
Letter Agreement between registrant and Robert W. Walker, executed on September 22, 2009 and effective October 2, 2009 (filed as Exhibit 10.2(a) to Form 8-K filed October 7, 2009) is incorporated herein by reference.
|
|
*** 10.6 |
Letter Agreement between registrant and Brien M. Chase, executed on September 22, 2009 and effective October 2, 2009 (filed as Exhibit 10.2(b) to Form 8-K filed October 7, 2009) is incorporated herein by reference.
|
|
*** 10.7 |
Letter Agreement between registrant and Dennis J. Klingensmith, executed on September 25, 2009 and effective October 2, 2009 (filed as Exhibit 10.2(c) to Form 8-K filed October 7, 2009) is incorporated herein by reference.
|
|
*** 10.8 |
Letter Agreement between registrant and Michael R. Mineer, executed on September 25, 2009 and effective October 2, 2009 (filed as Exhibit 10.2(d) to Form 8-K filed October 7, 2009) is incorporated herein by reference.
|
|
*** 10.9 |
Letter Agreement between registrant and Scot Kelley, executed on April 27, 2010, (filed as Exhibit 10.18 to Form 10-K filed March 30, 2012) is incorporated herein by reference.
|
|
*** 10.10 |
Letter Agreement between registrant and Katrina Whitt, executed on April 27, 2010, (filed as Exhibit 10.18 to Form 10-K filed March 30, 2012) is incorporated herein by reference.
|
|
10.11 |
Change in Terms Agreement with First Guaranty Bank, Hammond, Louisiana, filed as Exhibit 10.1 to form 8-K filed January 4, 2010, is incorporated herein by reference.
|
|
10.12 |
Loan Agreement between Premier Financial Bancorp, Inc. and First Guaranty Bank, Hammond, Louisiana, filed as Exhibit 10.1 to form 8-K filed January 7, 2010, is incorporated herein by reference.
|
|
10.13 |
Promissory Note to First Guaranty Bank, Hammond, Louisiana, filed as Exhibit 10.2 to form 8-K filed January 7, 2010, is incorporated herein by reference.
|
|
10.14 |
Commercial Pledge Agreement between Premier Financial Bancorp, Inc. and First Guaranty Bank, Hammond, Louisiana filed as Exhibit 10.3 to form 8-K filed January 7, 2010, is incorporated herein by reference.
|
|
10.15 |
Written Agreement by and among Premier Financial Bancorp, Inc., Huntington, West Virginia, Abigail Adams National Bancorp, Inc., Washington, D.C., Consolidated Bank and Trust Company, Richmond, Virginia, the Federal Reserve Bank of Richmond, Richmond, Virginia, and State Corporation Commission Bureau of Financial Institutions, Richmond, Virginia dated July 29, 2010, filed as Exhibit 10.1 to Form 8-K filed on July 30, 2010, is incorporated herein by reference.
|
|
10.16 |
Loan Agreement between Premier Financial Bancorp, Inc. and The Kentucky Bankers’ Bank, Inc. filed as Exhibit 10.1 to form 8-K filed on September 9, 2010, is incorporated herein by reference.
|
Exhibit
Number
|
Description of Document
|
||
10.17 |
Term Note to The Kentucky Bankers’ Bank, Inc. filed as Exhibit 10.2 to form 8-K filed on September 9, 2010, is incorporated herein by reference.
|
||
10.18 |
Stock Pledge and Security Agreement between Premier Financial Bancorp, Inc. and The Kentucky Bankers’ Bank, Inc. filed as Exhibit 10.3 to form 8-K filed on September 9, 2010, is incorporated herein by reference.
|
||
10.19 |
Change in Terms Agreement with First Guaranty Bank, Hammond, Louisiana dated May 3, 2011.
|
||
10.20 |
Loan Agreement between Premier Financial Bancorp, Inc. and First Guaranty Bank, Hammond, Louisiana, filed as Exhibit 10.1 to form 8-K filed July 1, 2011, is incorporated herein by reference.
|
||
10.21 |
Promissory Note to First Guaranty Bank, Hammond, Louisiana, filed as Exhibit 10.2 to form 8-K filed July 1, 2011, is incorporated herein by reference.
|
||
10.22 |
Commercial Pledge Agreement between Premier Financial Bancorp, Inc. and First Guaranty Bank, Hammond, Louisiana filed as Exhibit 10.3 to form 8-K filed July 1, 2011, is incorporated herein by reference.
|
||
*** 10.23 |
Premier Financial Bancorp, Inc.'s 2012 Long Term Incentive Plan, filed as Annex A to definitive proxy statement dated May 17, 2012, filed on April 27, 2012 with the Commission, is incorporated herein by reference.
|
||
10.24 |
Loan Agreement between Premier Financial Bancorp, Inc. and First Guaranty Bank, Hammond, Louisiana, filed as Exhibit 10.1 to form 8-K filed June 29, 2012, is incorporated herein by reference.
|
||
10.25 |
Promissory Note to First Guaranty Bank, Hammond, Louisiana, filed as Exhibit 10.2 to form 8-K filed June 29, 2012, is incorporated herein by reference.
|
||
10.26 |
Commercial Pledge Agreement between Premier Financial Bancorp, Inc. and First Guaranty Bank, Hammond, Louisiana filed as Exhibit 10.3 to form 8-K filed June 29, 2012, is incorporated herein by reference.
|
||
10.27 |
Loan Agreement between Premier Financial Bancorp, Inc. and The Kentucky Bankers’ Bank, Inc. filed as Exhibit 10.1 to form 8-K filed on September 10, 2012, is incorporated herein by reference.
|
||
10.28 |
Promissory Note to The Kentucky Bankers’ Bank, Inc. filed as Exhibit 10.2 to form 8-K filed on September 10, 2012, is incorporated herein by reference.
|
||
10.29 |
Stock Pledge and Security Agreement between Premier Financial Bancorp, Inc. and The Kentucky Bankers’ Bank, Inc. filed as Exhibit 10.3 to form 8-K filed on September 10, 2012, is incorporated herein by reference.
|
||
*** 10.30 |
Form of Stock Option Agreement pursuant to 2012 Long Term Incentive Plan, filed as Exhibit 10.1 to form 8-K filed March 21, 2013, is incorporated herein by reference.
|
||
10.31 |
Change in Terms Agreement between Premier Financial Bancorp, Inc. and First Guaranty Bank, Hammond, Louisiana, dated April 24, 2013 related to the Term Note filed as Exhibit 10.1 to form 8-K filed April 30, 2013, is incorporated herein by reference.
|
Exhibit
Number
|
Description of Document
|
|
10.32 |
Change in Terms Agreement between Premier Financial Bancorp, Inc. and First Guaranty Bank, Hammond, Louisiana, dated April 24, 2013 related to the Line of Credit filed as Exhibit 10.2 to form 8-K filed April 30, 2013, is incorporated herein by reference.
|
|
10.33 |
Line of Credit Renewal Agreement between Premier Financial Bancorp, Inc. and The Bankers’ Bank of Kentucky, Inc. dated September 7, 2013 filed as Exhibit 10.4 to form 8-K filed September 11, 2013, is incorporated herein by reference..
|
|
14.1 |
Premier Financial Bancorp, Inc. Code of Ethics for the Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer, filed as Exhibit 14.1 to form 10-K filed on April 14, 2004, is incorporated herein by reference.
|
|
14.2 |
Premier Financial Bancorp, Inc. Code of Business Conduct and Ethics, filed as Exhibit 14.2 to form 10-K filed on April 14, 2004, is incorporated herein by reference.
|
|
21 | ||
23 | ||
31.1 | ||
31.2 | ||
32 | ||
*** Denotes executive compensation plans and arrangements.
|
PREMIER FINANCIAL BANCORP, INC.
|
|
By: /s/ Robert W.
Walker
, President
|
|
Robert W. Walker, President
|
|
Date: March 13, 2014
|
|
/s/ Robert W. Walker
|
Principal Executive and Director
|
March 13, 2014
|
Robert W. Walker
|
||
/s/ Brien M. Chase
|
Principal Financial and Accounting
|
March 13, 2014
|
Brien M. Chase
|
Officer
|
|
/s/ Toney K. Adkins
|
Director
|
March 11, 2014
|
Toney K. Adkins
|
||
/s/ Harry M. Hatfield
|
Director
|
March 11, 2014
|
Harry M. Hatfield
|
||
/s/ Lloyd G. Jackson II
|
Director
|
March 11, 2014
|
Lloyd G. Jackson II
|
||
/s/ Keith F. Molihan
|
Director
|
March 11, 2014
|
Keith F. Molihan
|
||
/s/ Marshall T. Reynolds
|
Chairman of the Board
|
March 11, 2014
|
Marshall T. Reynolds
|
||
/s/ Neal Scaggs
|
Director
|
March 11, 2014
|
Neal Scaggs
|
||
/s/ Thomas W. Wright |
Director
|
March 11, 2014
|
Thomas W. Wright
|
||
1.1 |
General Effect of Merger; Assets
|
2 |
1.2 |
Liabilities of Surviving Bank
|
3 |
1.3 |
Name, Directors and Officers of Surviving Bank
|
3 |
1.4 |
Capital Structure of Surviving Bank
|
3 |
1.5 |
Change in Method of Effecting Acquisition
|
3 |
2.1 |
General
|
4 |
2.2 |
Consideration
|
4 |
2.3 |
Manner of Exchange
|
4 |
2.4 |
Lost Certificates
|
5 |
3.1 |
Organization, Standing and Authority
|
5 |
3.2 |
Authority
|
5 |
3.3 |
Interim Bank Formation; Adoption Agreement
|
5 |
3.4 |
Filing of Application to Effect the Reorganization
|
5 |
3.5 |
Best Efforts
|
6 |
4.1
|
Organization, Standing and Authority
|
6
|
4.2
|
Capital Structure
|
6
|
4.3
|
Subsidiaries
|
6
|
4.4
|
Authority
|
6
|
4.5
|
Bank Financial Statements
|
7
|
4.6
|
Accuracy of Annual Reports
|
7
|
4.7
|
Allowance for Possible Loan Losses
|
7
|
4.8
|
Absence of Undisclosed Liabilities
|
8
|
4.9
|
Tax Matters
|
8
|
4.10
|
Loans
|
9
|
4.11
|
Properties
|
9
|
4.12
|
Compliance with Laws
|
9
|
4.13
|
Employee Benefit Plans
|
9
|
4.14
|
Commitments and Contracts
|
10
|
4.15
|
Labor
|
11
|
4.16
|
Material Contracts Furnished
|
11
|
4.17
|
Material Contracts
|
11
|
4.18
|
Material Contract Defaults
|
11
|
4.19
|
Legal Proceedings
|
11
|
4.20
|
Absence of Certain Changes or Events
|
12
|
4.21
|
Reports
|
12
|
4.22
|
Accuracy of Proxy Statement
|
12
|
4.23
|
Investments
|
12
|
4.24
|
Securities Portfolio
|
12
|
4.25
|
Environmental Matters
|
12
|
4.26
|
Best Efforts
|
13
|
4.27
|
Consumer Credit Protection
|
13
|
4.28
|
Conduct of Business – Negative Covenants of Bank and Bancshares
|
13
|
4.29
|
Conduct of Business – Affirmative Covenants of Bank and Bancshares
|
14
|
4.30
|
Balance Sheet Due Diligence Checklist
|
16
|
4.31
|
Branch Operations Certification
|
16
|
4.32
|
Merger of Bancshares
|
16
|
5.1
|
Access and Information
|
16
|
5.2
|
Furnishing Information and Indemnification
|
17
|
5.3
|
Confidentiality
|
17
|
5.4
|
Updates to Information
|
18
|
(a)
|
Governmental Approvals
|
18
|
(b)
|
Shareholder Approval
|
18
|
(c)
|
No Divestiture or Adverse Condition
|
18
|
(d)
|
Accuracy of Representations and Warranties;
Performance of Obligations and Covenants – Premier
|
18
|
(e)
|
Accuracy of Representations and Warranties;
Performance of Obligations and Covenants – Bank and Bancshares
|
19
|
(f)
|
Opinion of Counsel for Bank and Bancshares
|
19
|
(g)
|
Opinion of Counsel for Premier
|
20
|
(h)
|
Absence of Material Adverse Changes - Premier
|
21
|
(i)
|
Absence of Material Adverse Changes – Bank and Bancshares
|
21
|
(j)
|
Consent of Lenders
|
21
|
(k)
|
No Excess Parachute Payment
|
21
|
(l)
|
Merger of Bancshares
|
21
|
(m)
|
Successful Pre-Conversion Test
|
21
|
7.1
|
Closing Date
|
22
|
7.2
|
Effective Time
|
22
|
8.1
|
Common Operating System Provider
|
23
|
8.2
|
Expiring Bank Core Processing System Contract
|
23
|
8.3
|
Cooperating in Preparation for Conversion
|
23
|
8.4
|
Conversion Expenses
|
23
|
8.5
|
Archived Records of Bank
|
23
|
9.1
|
Grounds for Termination
|
23
|
9.2
|
Effect of Termination
|
24
|
9.3
|
Lost Opportunity Costs
|
24
|
9.4
|
Return of Information
|
25
|
Section 10.
|
Waiver and Amendment
|
25
|
Section 11.
|
Meeting of Shareholders
|
25
|
Section 12.
|
Rights of Dissenting Shareholders
|
27
|
13.1
|
Indemnification
|
27
|
13.2
|
Insurance
|
27
|
13.3
|
Consolidation or Merger
|
27
|
13.4
|
Survival
|
27
|
13.5
|
Regulatory Constraints
|
28
|
14.1
|
Employees of Bank
|
28
|
14.2
|
Severance
|
28
|
14.3
|
Survival
|
29
|
15.1
|
Public Announcements
|
29
|
15.2
|
Brokers and Finders
|
29
|
15.3
|
Disclosed In Writing
|
29
|
15.4
|
Entire Agreement
|
29
|
15.5
|
Counterparts
|
29
|
15.6
|
Invalid Provisions
|
29
|
15.7
|
Notices
|
29
|
15.8
|
Headings
|
30
|
15.9
|
Expenses
|
30
|
15.10
|
Governing Law
|
30
|
15.11
|
No Assignment
|
30
|
15.12
|
Effectiveness of Agreement
|
30
|
15.13
|
Further Acts
|
31
|
Subsidiary
|
Jurisdiction of Incorporation
|
Citizens Deposit Bank and Trust Company
|
Kentucky
|
Premier Bank, Inc.
|
West Virginia
|
1.
|
I have reviewed this annual report on Form 10-K of Premier Financial Bancorp, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
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
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
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.
|
1.
|
I have reviewed this annual report on Form 10-K of Premier Financial Bancorp, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
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
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
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.
|
|
o
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, and
|
|
o
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|