|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Kentucky
|
61-1206757
|
|
(State or other jurisdiction of incorporation organization)
|
(I.R.S. Employer Identification No.)
|
|
2883 Fifth Avenue
Huntington, West Virginia
|
25702
|
|
(Address of principal executive offices)
|
(Zip Code)
|
|
Registrant’s telephone number (304) 525-1600
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, no par value
|
PFBI
|
The Nasdaq Stock Market LLC
|
Large accelerated filer
|
Accelerated filer
|
|
Non-accelerated filer
|
Smaller reporting company
|
Emerging growth company
|
Title of each class
|
Outstanding at March 6, 2020
|
|
Common Stock, no par value
|
14,658,132
|
Document
|
Parts Into Which Incorporated
|
|
Proxy Statement for the Annual Meeting of Shareholders to be held on June 17, 2020.
|
Part III
|
PART I
|
||||
4
|
||||
18
|
||||
28
|
||||
29
|
||||
30
|
||||
30
|
||||
PART II
|
||||
31
|
||||
33
|
||||
34
|
||||
72
|
||||
94
|
||||
95
|
||||
98
|
||||
100
|
||||
101
|
||||
102
|
||||
103
|
||||
104
|
||||
106
|
||||
164
|
||||
164
|
||||
164
|
||||
PART III
|
||||
165
|
||||
165
|
||||
165
|
||||
165
|
||||
165
|
||||
PART IV
|
||||
166
|
||||
170
|
|
|
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;
|
|
|
applied the same leverage and risk-based capital requirements that apply to insured depository institutions to most bank holding companies;
|
|
|
required bank holding companies and banks to be both well capitalized and well managed in order to acquire banks located outside their home state;
|
|
|
changed the assessment base for federal deposit insurance from the amount of insured deposits to consolidated assets less tangible capital, eliminated the ceiling on the size of the Deposit
Insurance Fund and increased the floor of the size for the Deposit Insurance Fund;
|
|
|
imposed 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;
|
|
|
required 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
prior to the acquisition;
|
•
|
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.
|
Loan Production Office
|
Address
|
Location and Zip Code
|
Leased/
Owned
|
Beckley
|
300 North Kanawha St, Suite 207
|
Beckley, WV 25801
|
Leased
|
Fairmont
|
412 Fairmont Avenue
|
Fairmont, WV 26554
|
Leased
|
Period Ending
|
||||||
Index
|
12/31/14
|
12/31/15
|
12/31/16
|
12/31/17
|
12/31/18
|
12/31/19
|
Premier Financial Bancorp, Inc.
|
100.00
|
109.52
|
152.54
|
157.06
|
150.68
|
189.94
|
Russell 2000 Index
|
100.00
|
95.59
|
115.95
|
132.94
|
118.30
|
148.49
|
SNL Banks $1B-$5B Index
|
100.00
|
111.94
|
161.04
|
171.69
|
150.42
|
182.85
|
(Dollars in thousands, except per share amounts)
|
At or for the Year Ended December 31
|
|||||||||||||||||||
2019
|
2018
|
2017
|
2016
|
2015
|
||||||||||||||||
Earnings
|
||||||||||||||||||||
Net interest income
|
$
|
66,901
|
$
|
59,754
|
$
|
57,488
|
$
|
53,698
|
$
|
48,380
|
||||||||||
Provision for loan losses
|
1,250
|
2,315
|
2,499
|
1,748
|
326
|
|||||||||||||||
Non-interest income
|
9,334
|
9,098
|
8,655
|
8,187
|
7,099
|
|||||||||||||||
Non-interest expense
|
43,764
|
40,471
|
40,218
|
41,193
|
35,804
|
|||||||||||||||
Income taxes
|
7,025
|
5,898
|
8,607
|
6,770
|
6,903
|
|||||||||||||||
Net income
|
$
|
24,196
|
$
|
20,168
|
$
|
14,819
|
$
|
12,174
|
$
|
12,446
|
||||||||||
Financial Position
|
||||||||||||||||||||
Total assets
|
$
|
1,781,010
|
$
|
1,690,115
|
$
|
1,493,424
|
$
|
1,496,193
|
$
|
1,244,693
|
||||||||||
Loans
|
1,195,295
|
1,149,301
|
1,049,052
|
1,024,823
|
849,746
|
|||||||||||||||
Allowance for loan losses
|
13,542
|
13,738
|
12,104
|
10,836
|
9,647
|
|||||||||||||||
Goodwill and other intangibles
|
53,016
|
52,908
|
38,746
|
39,720
|
35,976
|
|||||||||||||||
Securities
|
390,754
|
365,731
|
278,466
|
288,607
|
255,466
|
|||||||||||||||
Deposits
|
1,495,753
|
1,430,127
|
1,272,675
|
1,279,386
|
1,060,196
|
|||||||||||||||
Other borrowings
|
26,803
|
33,381
|
28,310
|
32,679
|
32,986
|
|||||||||||||||
Subordinated debt
|
5,436
|
5,406
|
5,376
|
5,343
|
-
|
|||||||||||||||
Common equity
|
240,241
|
216,729
|
183,355
|
174,184
|
147,232
|
|||||||||||||||
Per Common Share Data
|
||||||||||||||||||||
Net income – basic
|
1.65
|
1.48
|
1.11
|
0.92
|
1.11
|
|||||||||||||||
Net income - diluted
|
1.64
|
1.47
|
1.10
|
0.92
|
1.08
|
|||||||||||||||
Book value
|
16.39
|
14.82
|
13.74
|
13.10
|
13.09
|
|||||||||||||||
Tangible book value
|
12.77
|
11.20
|
10.84
|
10.11
|
9.89
|
|||||||||||||||
Cash dividends
|
0.60
|
0.57
|
0.48
|
0.45
|
0.41
|
|||||||||||||||
Financial Ratios
|
||||||||||||||||||||
Return on average assets
|
1.40
|
%
|
1.30
|
%
|
0.99
|
%
|
0.82
|
%
|
0.98
|
%
|
||||||||||
Return on average common equity
|
10.45
|
%
|
10.46
|
%
|
8.13
|
%
|
6.94
|
%
|
8.41
|
%
|
||||||||||
Dividend payout
|
36.36
|
%
|
38.51
|
%
|
43.24
|
%
|
48.62
|
%
|
36.69
|
%
|
||||||||||
Stockholders’ equity to total assets at period-end
|
13.49
|
%
|
12.82
|
%
|
12.28
|
%
|
11.64
|
%
|
11.83
|
%
|
||||||||||
Average stockholders’ equity to average total assets
|
13.43
|
%
|
12.39
|
%
|
12.18
|
%
|
11.78
|
%
|
11.67
|
%
|
ANALYSIS of RETURN ON ASSETS and EQUITY
|
||||||||||||||||||||
2019
|
2018
|
2017
|
2016
|
2015
|
||||||||||||||||
As a percent of average earning assets
|
||||||||||||||||||||
Fully taxable-equivalent net interest income
|
4.18
|
%
|
4.13
|
%
|
4.18
|
%
|
3.93
|
%
|
4.15
|
%
|
||||||||||
Provision for loan losses
|
(0.08
|
)
|
(0.16
|
)
|
(0.18
|
)
|
(0.13
|
)
|
(0.03
|
)
|
||||||||||
Net credit income
|
4.10
|
3.97
|
4.00
|
3.80
|
4.12
|
|||||||||||||||
Non-interest income
|
0.58
|
0.63
|
0.62
|
0.59
|
0.61
|
|||||||||||||||
Non-interest expense
|
(2.72
|
)
|
(2.79
|
)
|
(2.90
|
)
|
(2.99
|
)
|
(3.05
|
)
|
||||||||||
Tax equivalent adjustment
|
(0.01
|
)
|
(0.01
|
)
|
(0.03
|
)
|
(0.03
|
)
|
(0.03
|
)
|
||||||||||
Applicable income taxes
|
(0.44
|
)
|
(0.41
|
)
|
(0.62
|
)
|
(0.49
|
)
|
(0.59
|
)
|
||||||||||
Return on average earning assets
|
1.51
|
%
|
1.39
|
%
|
1.07
|
%
|
0.88
|
%
|
1.06
|
%
|
||||||||||
Multiplied by average earning assets to average total assets
|
93.12
|
93.39
|
92.62
|
92.56
|
92.45
|
|||||||||||||||
Return on average assets
|
1.40
|
%
|
1.30
|
%
|
0.99
|
%
|
0.82
|
%
|
0.98
|
%
|
||||||||||
Multiplied by average assets to average common stockholders’ equity
|
7.44
|
X
|
8.07
|
X
|
8.21
|
X
|
8.49
|
X
|
8.57
|
X
|
||||||||||
Return on average common equity
|
10.45
|
%
|
10.50
|
%
|
8.14
|
%
|
6.94
|
%
|
8.41
|
%
|
QUARTERLY FINANCIAL INFORMATION
|
||||||||||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||||||||
First
|
Second
|
Third
|
Fourth
|
Full Year
|
||||||||||||||||
2019
|
||||||||||||||||||||
Interest income
|
$
|
19,064
|
$
|
19,106
|
$
|
19,308
|
$
|
19,100
|
$
|
76,578
|
||||||||||
Interest expense
|
2,229
|
2,451
|
2,530
|
2,467
|
9,677
|
|||||||||||||||
Net interest income
|
16,835
|
16,655
|
16,778
|
16,633
|
66,901
|
|||||||||||||||
Provision for loan losses
|
560
|
330
|
425
|
(65
|
)
|
1,250
|
||||||||||||||
Net overhead
|
8,417
|
8,694
|
8,279
|
9,040
|
34,430
|
|||||||||||||||
Income before income taxes
|
7,858
|
7,631
|
8,074
|
7,658
|
31,221
|
|||||||||||||||
Net income
|
6,176
|
5,859
|
6,267
|
5,894
|
24,196
|
|||||||||||||||
Basic net income per share
|
0.42
|
0.40
|
0.43
|
0.40
|
1.65
|
|||||||||||||||
Diluted net income per share
|
0.42
|
0.40
|
0.43
|
0.40
|
1.64
|
|||||||||||||||
Dividends paid per share
|
0.15
|
0.15
|
0.15
|
0.15
|
0.60
|
|||||||||||||||
2018
|
||||||||||||||||||||
Interest income
|
$
|
15,799
|
$
|
15,753
|
$
|
16,001
|
$
|
18,268
|
$
|
65,821
|
||||||||||
Interest expense
|
1,164
|
1,334
|
1,492
|
2,077
|
6,067
|
|||||||||||||||
Net interest income
|
14,635
|
14,419
|
14,509
|
16,191
|
59,754
|
|||||||||||||||
Provision for loan losses
|
1,115
|
500
|
275
|
425
|
2,315
|
|||||||||||||||
Net overhead
|
6,923
|
8,227
|
7,730
|
8,493
|
31,373
|
|||||||||||||||
Income before income taxes
|
6,597
|
5,692
|
6,504
|
7,273
|
26,066
|
|||||||||||||||
Net income
|
5,133
|
4,375
|
5,021
|
5,639
|
20,168
|
|||||||||||||||
Basic net income per share
|
0.38
|
0.33
|
0.38
|
0.39
|
1.48
|
|||||||||||||||
Diluted net income per share
|
0.38
|
0.32
|
0.37
|
0.39
|
1.47
|
|||||||||||||||
Dividends paid per share
|
0.12
|
0.15
|
0.15
|
0.15
|
0.57
|
AVERAGE CONSOLIDATED BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS
|
||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
2019
|
2018
|
2017
|
||||||||||||||||||||||||||||||||||
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
|
$
|
23,836
|
$
|
736
|
3.09
|
%
|
$
|
17,894
|
$
|
309
|
1.73
|
%
|
$
|
21,683
|
$
|
308
|
1.42
|
%
|
||||||||||||||||||
States and municipal
obligations (1)
|
13,948
|
481
|
3.45
|
10,291
|
322
|
3.13
|
12,132
|
402
|
3.31
|
|||||||||||||||||||||||||||
Mortgage backed securities
|
323,471
|
8,157
|
2.52
|
276,051
|
6,491
|
2.35
|
256,293
|
5,130
|
2.00
|
|||||||||||||||||||||||||||
Other securities
|
6,787
|
336
|
4.95
|
4,809
|
222
|
4.62
|
5,595
|
190
|
3.40
|
|||||||||||||||||||||||||||
Total investment securities
|
368,042
|
9,710
|
2.64
|
309,045
|
7,344
|
2.38
|
295,703
|
6,030
|
2.04
|
|||||||||||||||||||||||||||
Federal funds sold
|
18,385
|
409
|
2.22
|
11,848
|
248
|
2.09
|
7,051
|
73
|
1.04
|
|||||||||||||||||||||||||||
Interest-bearing deposits
with banks
|
62,852
|
1,323
|
2.10
|
72,307
|
1,441
|
1.99
|
36,405
|
603
|
1.66
|
|||||||||||||||||||||||||||
Loans, net of unearned
income (3)(4)
|
||||||||||||||||||||||||||||||||||||
Commercial
|
823,603
|
46,448
|
5.64
|
733,983
|
38,971
|
5.31
|
720,679
|
37,948
|
5.27
|
|||||||||||||||||||||||||||
Real estate mortgage
|
303,191
|
16,572
|
5.47
|
294,271
|
15,589
|
5.30
|
292,650
|
15,145
|
5.18
|
|||||||||||||||||||||||||||
Installment
|
30,095
|
2,330
|
7.74
|
31,281
|
2,409
|
7.70
|
32,566
|
2,566
|
7.88
|
|||||||||||||||||||||||||||
Total loans
|
1,156,889
|
65,350
|
5.65
|
1,059,535
|
56,969
|
5.38
|
1,045,895
|
55,659
|
5.32
|
|||||||||||||||||||||||||||
Total interest earning assets
|
1,606,168
|
76,792
|
4.78
|
1,452,735
|
66,002
|
4.54
|
1,385,054
|
62,365
|
4.50
|
|||||||||||||||||||||||||||
Allowance for loan losses
|
(13,815
|
)
|
(13,058
|
)
|
(11,461
|
)
|
||||||||||||||||||||||||||||||
Cash and due from banks
|
22,856
|
25,478
|
40,915
|
|||||||||||||||||||||||||||||||||
Premises and equipment
|
36,864
|
25,784
|
23,775
|
|||||||||||||||||||||||||||||||||
Other assets
|
72,704
|
64,600
|
57,170
|
|||||||||||||||||||||||||||||||||
Total assets
|
$
|
1,724,777
|
$
|
1,555,539
|
$
|
1,495,453
|
||||||||||||||||||||||||||||||
Liabilities and Equity:
|
||||||||||||||||||||||||||||||||||||
Interest bearing liabilities
|
||||||||||||||||||||||||||||||||||||
NOW and money market
|
$
|
411,717
|
1,324
|
0.32
|
%
|
$
|
378,617
|
958
|
0.25
|
%
|
$
|
368,093
|
619
|
0.17
|
%
|
|||||||||||||||||||||
Savings deposits
|
246,954
|
625
|
0.25
|
240,071
|
581
|
0.24
|
238,306
|
478
|
0.20
|
|||||||||||||||||||||||||||
Certificates of deposit and other time deposits
|
408,712
|
7,060
|
1.73
|
352,511
|
3,905
|
1.11
|
348,124
|
2,758
|
0.79
|
|||||||||||||||||||||||||||
Total interest bearing deposits
|
1,067,383
|
9,009
|
0.84
|
971,199
|
5,444
|
0.56
|
954,523
|
3,855
|
0.40
|
|||||||||||||||||||||||||||
Short-term borrowings
|
21,710
|
70
|
0.32
|
22,410
|
34
|
0.15
|
24,965
|
60
|
0.24
|
|||||||||||||||||||||||||||
Other borrowings
|
710
|
31
|
4.37
|
3,809
|
156
|
4.10
|
7,074
|
292
|
4.13
|
|||||||||||||||||||||||||||
FHLB advances
|
6,718
|
198
|
2.95
|
2,958
|
81
|
2.74
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Subordinated debt
|
5,420
|
369
|
6.81
|
5,390
|
352
|
6.53
|
5,359
|
295
|
5.50
|
|||||||||||||||||||||||||||
Total interest-bearing liabilities
|
1,101,941
|
9,677
|
0.88
|
%
|
1,005,766
|
6,067
|
0.60
|
%
|
991,921
|
4,502
|
0.45
|
%
|
||||||||||||||||||||||||
Non-interest bearing deposits
|
379,312
|
352,565
|
316,931
|
|||||||||||||||||||||||||||||||||
Other liabilities
|
11,601
|
4,451
|
4,411
|
|||||||||||||||||||||||||||||||||
Common equity
|
231,923
|
192,757
|
182,190
|
|||||||||||||||||||||||||||||||||
Total liabilities and equity
|
$
|
1,724,777
|
$
|
1,555,539
|
$
|
1,495,453
|
||||||||||||||||||||||||||||||
Net interest earnings (1)
|
$
|
67,115
|
$
|
59,935
|
$
|
57,863
|
||||||||||||||||||||||||||||||
Net interest spread (1)
|
3.90
|
%
|
3.94
|
%
|
4.05
|
%
|
||||||||||||||||||||||||||||||
Net interest margin (1)
|
4.18
|
%
|
4.13
|
%
|
4.18
|
%
|
||||||||||||||||||||||||||||||
(1) Taxable – equivalent yields are calculated assuming a 21% federal income tax rate for 2019 and 2018 and 35% for 2017
(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
|
||||||||||||||||||||||||||||||
2019
|
%
|
2018
|
%
|
2017
|
%
|
2016
|
%
|
2015
|
%
|
|||||||||||||||||||||
Summary of Loans by Type
|
||||||||||||||||||||||||||||||
Commercial, secured by real estate
|
$
|
523,958
|
43.8
|
%
|
$
|
493,937
|
43.0
|
%
|
$
|
451,433
|
43.0
|
%
|
$
|
443,832
|
43.3
|
%
|
$
|
374,558
|
44.1
|
%
|
||||||||||
Commercial, other
|
105,079
|
8.8
|
103,624
|
9.0
|
78,259
|
7.5
|
76,736
|
7.5
|
68,339
|
8.0
|
||||||||||||||||||||
Real estate construction and land development
|
136,138
|
11.4
|
128,926
|
11.2
|
139,012
|
13.2
|
117,828
|
11.5
|
78,695
|
9.3
|
||||||||||||||||||||
Real estate mortgage
|
389,985
|
32.6
|
381,027
|
33.2
|
338,829
|
32.3
|
342,294
|
33.4
|
285,826
|
33.6
|
||||||||||||||||||||
Agricultural
|
1,860
|
0.2
|
2,233
|
0.2
|
1,631
|
0.2
|
1,383
|
0.1
|
1,728
|
0.2
|
||||||||||||||||||||
Consumer
|
29,007
|
2.4
|
27,688
|
2.4
|
28,293
|
2.7
|
30,916
|
3.0
|
31,445
|
3.7
|
||||||||||||||||||||
Other
|
9,268
|
0.8
|
11,866
|
1.0
|
11,595
|
1.1
|
11,834
|
1.2
|
9,155
|
1.1
|
||||||||||||||||||||
Total loans
|
$
|
1,195,295
|
100.0
|
%
|
$
|
1,149,301
|
100.0
|
%
|
$
|
1,049,052
|
100.0
|
%
|
$
|
1,024,823
|
100.0
|
%
|
$
|
849,746
|
100.0
|
%
|
||||||||||
Non-performing Assets
|
||||||||||||||||||||||||||||||
Non-accrual loans
|
$
|
14,437
|
$
|
17,448
|
$
|
15,246
|
$
|
25,747
|
$
|
7,141
|
||||||||||||||||||||
Accruing loans which are contractually past due 90 days or more
|
2,228
|
1,086
|
3,391
|
1,999
|
3,032
|
|||||||||||||||||||||||||
Accruing troubled debt restructurings
|
3,020
|
6,283
|
12,584
|
8,268
|
3,996
|
|||||||||||||||||||||||||
Total non-performing and restructured loans
|
19,685
|
24,817
|
31,221
|
36,014
|
14,169
|
|||||||||||||||||||||||||
Other real estate acquired through foreclosures
|
12,242
|
14,024
|
19,966
|
12,665
|
13,040
|
|||||||||||||||||||||||||
Total non-performing and restructured loans and other real estate
|
$
|
31,927
|
$
|
38,841
|
$
|
51,187
|
$
|
48,679
|
$
|
27,209
|
||||||||||||||||||||
Non-performing and restructured loans as a % of total loans
|
1.65
|
%
|
2.16
|
%
|
2.98
|
%
|
3.51
|
%
|
1.67
|
%
|
||||||||||||||||||||
Non-performing and restructured loans and other real estate as a % of total assets
|
1.79
|
%
|
2.30
|
%
|
3.43
|
%
|
3.25
|
%
|
2.19
|
%
|
||||||||||||||||||||
Allocation of Allowance forLoan Losses
|
||||||||||||||||||||||||||||||
Commercial, other
|
$
|
1,946
|
9.8
|
%
|
$
|
2,152
|
10.2
|
%
|
$
|
1,226
|
8.8
|
%
|
$
|
1,243
|
8.8
|
%
|
$
|
1,166
|
9.3
|
%
|
||||||||||
Real estate, construction
|
1,724
|
11.4
|
2,255
|
11.2
|
2,408
|
13.2
|
1,397
|
11.5
|
1,061
|
9.3
|
||||||||||||||||||||
Real estate, other
|
9,591
|
76.4
|
8,980
|
76.2
|
8,142
|
75.3
|
7,849
|
76.7
|
7,113
|
77.7
|
||||||||||||||||||||
Consumer installment
|
281
|
2.4
|
351
|
2.4
|
328
|
2.7
|
347
|
3.0
|
307
|
3.7
|
||||||||||||||||||||
Total
|
$
|
13,542
|
100.0
|
%
|
$
|
13,738
|
100.0
|
%
|
$
|
12,104
|
100.0
|
%
|
$
|
10,836
|
100.0
|
%
|
$
|
9,647
|
100.0
|
%
|
SUMMARY OF LOAN LOSS EXPERIENCE
|
||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
For the Year Ended December 31
|
||||||||||||||||||||
2019
|
2018
|
2017
|
2016
|
2015
|
||||||||||||||||
Allowance for loan losses beginning of period
|
$
|
13,738
|
$
|
12,104
|
$
|
10,836
|
$
|
9,647
|
$
|
10,347
|
||||||||||
Amounts charged off:
|
||||||||||||||||||||
Commercial, financial and agricultural loans
|
680
|
794
|
496
|
347
|
611
|
|||||||||||||||
Real estate construction loans
|
14
|
20
|
129
|
-
|
900
|
|||||||||||||||
Real estate loans – other
|
829
|
398
|
1,000
|
323
|
376
|
|||||||||||||||
Consumer installment loans
|
193
|
156
|
278
|
340
|
209
|
|||||||||||||||
Total charge-offs
|
1,716
|
1,368
|
1,903
|
1,010
|
2,096
|
|||||||||||||||
Recoveries on amounts previously charged-off:
|
||||||||||||||||||||
Commercial, financial and agricultural loans
|
163
|
169
|
236
|
172
|
121
|
|||||||||||||||
Real estate construction loans
|
-
|
400
|
10
|
143
|
99
|
|||||||||||||||
Real estate loans – other
|
65
|
60
|
299
|
50
|
753
|
|||||||||||||||
Consumer installment loans
|
42
|
58
|
127
|
86
|
97
|
|||||||||||||||
Total recoveries
|
270
|
687
|
672
|
451
|
1,070
|
|||||||||||||||
Net charge-offs
|
1,446
|
681
|
1,231
|
559
|
1,026
|
|||||||||||||||
Provision for loan losses
|
1,250
|
2,315
|
2,499
|
1,748
|
326
|
|||||||||||||||
Allowance for loan losses, end of period
|
$
|
13,542
|
$
|
13,738
|
$
|
12,104
|
$
|
10,836
|
$
|
9,647
|
||||||||||
Average total loans
|
$
|
1,156,889
|
$
|
1,059,535
|
$
|
1,045,894
|
$
|
1,003,528
|
$
|
866,556
|
||||||||||
Total loans at year-end
|
1,195,295
|
1,149,301
|
1,049,052
|
1,024,823
|
849,746
|
|||||||||||||||
As a percent of average loans
|
||||||||||||||||||||
Net charge-offs
|
0.12
|
%
|
0.06
|
%
|
0.12
|
%
|
0.06
|
%
|
0.12
|
%
|
||||||||||
Provision for loan losses
|
0.11
|
%
|
0.22
|
%
|
0.24
|
%
|
0.17
|
%
|
0.04
|
%
|
||||||||||
Allowance for loan losses
|
1.17
|
%
|
1.30
|
%
|
1.16
|
%
|
1.08
|
%
|
1.11
|
%
|
||||||||||
As a percent of total loans at year-end
|
||||||||||||||||||||
Allowance for loan losses
|
1.13
|
%
|
1.20
|
%
|
1.15
|
%
|
1.06
|
%
|
1.14
|
%
|
||||||||||
As a multiple of net charge-offs
|
||||||||||||||||||||
Allowance for loan losses
|
9.37
|
X
|
20.17
|
X
|
9.83
|
X
|
19.38
|
X
|
9.40
|
X
|
||||||||||
Income before tax and provision for loan losses
|
22.46
|
X
|
41.68
|
X
|
21.06
|
X
|
37.02
|
X
|
19.18
|
X
|
LOAN MATURITIES and INTEREST SENSITIVITY
|
||||||||||||||||
December 31, 2019
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Projected Maturities*
|
||||||||||||||||
One Year or Less
|
One Through Five Years
|
Over
Five Years
|
Total
|
|||||||||||||
Commercial, secured by real estate
|
$
|
115,699
|
$
|
385,358
|
$
|
22,957
|
$
|
524,014
|
||||||||
Commercial, other
|
57,304
|
43,067
|
4,756
|
105,127
|
||||||||||||
Real estate construction
|
69,194
|
61,213
|
5,791
|
136,198
|
||||||||||||
Agricultural
|
186
|
1,501
|
173
|
1,860
|
||||||||||||
Total
|
$
|
242,383
|
$
|
491,139
|
$
|
33,677
|
$
|
767,199
|
||||||||
Fixed rate loans
|
$
|
57,647
|
$
|
169,475
|
$
|
16,642
|
$
|
243,764
|
||||||||
Floating rate loans
|
184,736
|
321,664
|
17,035
|
523,435
|
||||||||||||
Total
|
$
|
242,383
|
$
|
491,139
|
$
|
33,677
|
$
|
767,199
|
||||||||
Fixed rate loans projected to mature after one year
|
$
|
186,117
|
||||||||||||||
Floating rate loans projected to mature after one year
|
338,699
|
|||||||||||||||
Total
|
$
|
524,816
|
||||||||||||||
(*) Based on scheduled or approximate repayments
|
FAIR VALUE OF SECURITIES AVAILABLE FOR SALE
|
||||||||||||
(Dollars in thousands)
|
||||||||||||
As of December 31
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
U.S. government sponsored entity securities
|
$
|
30,730
|
$
|
24,170
|
$
|
19,134
|
||||||
States and political subdivisions
|
16,017
|
14,327
|
11,634
|
|||||||||
Mortgage-backed securities issued by government sponsored entities
|
341,953
|
323,785
|
247,698
|
|||||||||
Other securities
|
2,054
|
3,449
|
-
|
|||||||||
Total securities
|
$
|
390,754
|
$
|
365,731
|
$
|
278,466
|
SECURITIES MATURITY AND YIELD ANALYSIS
|
||||||||||||
December 31, 2019
|
||||||||||||
(Dollars in thousands)
|
||||||||||||
Fair Value
|
Average Maturity (yrs/mos)
|
Taxable Equivalent Yield*
|
||||||||||
U.S. government sponsored entity securities
|
||||||||||||
Within one year
|
$
|
7,633
|
1.95
|
%
|
||||||||
After one but within five years
|
12,105
|
2.68
|
||||||||||
After five but within ten years
|
10,450
|
2.51
|
||||||||||
After ten years
|
542
|
2.24
|
||||||||||
Total U.S. government sponsored entity securities
|
$
|
30,730
|
4/1
|
2.43
|
||||||||
States and political subdivisions
|
||||||||||||
Within one year
|
1,822
|
3.15
|
||||||||||
After one but within five years
|
3,238
|
2.61
|
||||||||||
After five but within ten years
|
5,534
|
3.08
|
||||||||||
After ten years
|
5,423
|
3.78
|
||||||||||
Total states and political subdivisions securities
|
$
|
16,017
|
7/3
|
3.28
|
||||||||
Mortgage-backed securities**
|
||||||||||||
Within one year
|
2,225
|
3.10
|
||||||||||
After one but within five years
|
325,558
|
2.67
|
||||||||||
After five but within ten years
|
14,170
|
2.54
|
||||||||||
Total mortgage-backed securities
|
$
|
341,953
|
3/8
|
2.67
|
||||||||
Other securities
|
||||||||||||
After one but within five years
|
$
|
1,527
|
3.89
|
%
|
||||||||
After five but within ten years
|
527
|
3.67
|
||||||||||
Total other securities
|
$
|
2,054
|
3/3
|
3.84
|
||||||||
Total securities available-for-sale
|
$
|
390,754
|
3/10
|
2.68
|
||||||||
(*) Fully tax-equivalent using the rate of 21%
|
||||||||||||
(**) Maturities for mortgage-backed securities are based on expected average life
|
MATURITY OF TIME DEPOSITS $100,000 OR MORE
|
||||
December 31, 2019
|
||||
(Dollars in thousands)
|
||||
Maturing 3 months or less
|
$
|
38,130
|
||
Maturing over 3 months
|
60,399
|
|||
Maturing over 6 months
|
63,889
|
|||
Maturing over 12 months
|
78,933
|
|||
Total
|
$
|
241,351
|
Year-end
2019
|
Year-end
2018
|
ALCO Guidelines
|
||||||||||
Projected 1-year net interest income
|
||||||||||||
-100 bp change vs. base rate
|
-4.5
|
%
|
-4.2
|
%
|
5
|
%
|
||||||
+100 bp change vs. base rate
|
3.5
|
%
|
0.4
|
%
|
5
|
%
|
||||||
Projected 1-year net interest income
|
||||||||||||
-200 bp change vs. base rate
|
-6.7
|
%
|
-9.1
|
%
|
10
|
%
|
||||||
+200 bp change vs. base rate
|
6.0
|
%
|
-0.1
|
%
|
10
|
%
|
SELECTED CAPITAL INFORMATION
|
||||||||||||
(Dollars in thousands)
|
||||||||||||
As of December 31
|
||||||||||||
2019
|
2018
|
Change
|
||||||||||
Stockholders’ Equity
|
$
|
240,241
|
$
|
216,729
|
$
|
23,512
|
||||||
Disallowed amounts of goodwill and other intangibles
|
(49,290
|
)
|
(49,263
|
)
|
(27
|
)
|
||||||
Deferred tax assets from NOL and tax credit carryforwards
|
(298
|
)
|
(286
|
)
|
(12
|
)
|
||||||
Unrealized (gain) loss on securities available for sale
|
(3,703
|
)
|
3,852
|
(7,555
|
)
|
|||||||
Common Equity Tier 1 capital
|
$
|
186,950
|
$
|
171,032
|
$
|
15,918
|
||||||
Qualifying subordinated debt
|
6,000
|
6,000
|
-
|
|||||||||
Tier 1 capital
|
$
|
192,950
|
$
|
177,032
|
$
|
15,918
|
||||||
Tier 2 capital adjustments
|
||||||||||||
Allowable amount of the allowance for loan losses
|
13,542
|
13,738
|
||||||||||
Total capital
|
$
|
206,492
|
$
|
190,770
|
||||||||
Total risk-weighted assets
|
$
|
1,253,472
|
$
|
1,201,379
|
||||||||
Ratios
|
||||||||||||
CET1 capital to risk-weighted assets
|
14.92
|
%
|
14.24
|
%
|
||||||||
Tier 1 capital to risk-weighted assets
|
15.39
|
%
|
14.74
|
%
|
||||||||
Total capital to risk-weighted assets
|
16.47
|
%
|
15.88
|
%
|
||||||||
Leverage
|
11.28
|
%
|
10.72
|
%
|
||||||||
Capital conservation buffer
|
8.47
|
%
|
7.88
|
%
|
RATE VOLUME ANALYSIS OF CHANGES IN NET INTEREST INCOME
|
||||||||||||||||||||||||
(Dollars in thousands on a tax equivalent basis)
|
||||||||||||||||||||||||
2019 vs 2018
|
2018 vs 2017
|
|||||||||||||||||||||||
Increase (decrease) due to change in
|
Increase (decrease) due to change in
|
|||||||||||||||||||||||
Volume
|
Rate
|
Net Change
|
Volume
|
Rate
|
Net Change
|
|||||||||||||||||||
Interest income*:
|
||||||||||||||||||||||||
Loans
|
$
|
5,405
|
$
|
2,976
|
$
|
8,381
|
$
|
730
|
$
|
580
|
$
|
1,310
|
||||||||||||
Investment securities
|
1,500
|
866
|
2,366
|
282
|
1,032
|
1,314
|
||||||||||||||||||
Federal funds sold
|
145
|
16
|
161
|
70
|
105
|
175
|
||||||||||||||||||
Deposits with banks
|
(196
|
)
|
78
|
(118
|
)
|
695
|
143
|
838
|
||||||||||||||||
Total interest income
|
$
|
6,854
|
$
|
3,936
|
$
|
10,790
|
$
|
1,777
|
$
|
1,860
|
$
|
3,637
|
||||||||||||
Interest expense:
|
||||||||||||||||||||||||
Deposits
|
||||||||||||||||||||||||
NOW and money market
|
$
|
89
|
$
|
277
|
$
|
366
|
$
|
18
|
$
|
321
|
$
|
339
|
||||||||||||
Savings
|
17
|
27
|
44
|
4
|
99
|
103
|
||||||||||||||||||
Certificates of deposit
|
700
|
2,455
|
3,155
|
35
|
1,112
|
1,147
|
||||||||||||||||||
Short-term borrowings
|
(1
|
)
|
37
|
36
|
(6
|
)
|
(20
|
)
|
(26
|
)
|
||||||||||||||
Other borrowings
|
(135
|
)
|
10
|
(125
|
)
|
(134
|
)
|
(2
|
)
|
(136
|
)
|
|||||||||||||
FHLB borrowings
|
113
|
4
|
117
|
81
|
-
|
81
|
||||||||||||||||||
Subordinated debt
|
2
|
15
|
17
|
2
|
55
|
57
|
||||||||||||||||||
Total interest expense
|
$
|
785
|
$
|
2,825
|
$
|
3,610
|
$
|
-
|
$
|
1,565
|
$
|
1,565
|
||||||||||||
Net interest income*
|
$
|
6,069
|
$
|
1,111
|
$
|
7,180
|
$
|
1,777
|
$
|
295
|
$
|
2,072
|
||||||||||||
(*) Fully taxable equivalent using the rate of 21% for 2019 and 2018, and 35% for 2017.
Note – Changes to rate/volume are allocated to both rate and volume on a proportional dollar basis
|
NON-INTEREST INCOME AND EXPENSE
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Increase (Decrease) Over Prior Year
|
||||||||||||||||||||||||||||
2019
|
2018
|
|||||||||||||||||||||||||||
2019
|
2018
|
2017
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||||||||||||
Non-interest income:
|
||||||||||||||||||||||||||||
Service charges on deposit accounts
|
$
|
4,661
|
$
|
4,562
|
$
|
4,357
|
$
|
99
|
2.17
|
$
|
205
|
4.71
|
||||||||||||||||
Electronic banking income
|
3,488
|
3,530
|
3,260
|
(42
|
)
|
(1.19
|
)
|
270
|
8.28
|
|||||||||||||||||||
Secondary market mortgage income
|
214
|
180
|
201
|
34
|
18.89
|
(21
|
)
|
(10.45
|
)
|
|||||||||||||||||||
Other
|
971
|
826
|
837
|
145
|
17.55
|
(11
|
)
|
(1.31
|
)
|
|||||||||||||||||||
Total non-interest income
|
$
|
9,334
|
$
|
9,098
|
$
|
8,655
|
$
|
236
|
2.59
|
$
|
443
|
5.12
|
||||||||||||||||
Non-interest expense:
|
||||||||||||||||||||||||||||
Salaries and wages
|
$
|
17,502
|
$
|
16,118
|
$
|
15,595
|
$
|
1,384
|
8.59
|
$
|
523
|
3.35
|
||||||||||||||||
Employee benefits
|
3,983
|
3,685
|
3,760
|
298
|
8.09
|
(75
|
)
|
(1.99
|
)
|
|||||||||||||||||||
Total staff costs
|
21,485
|
19,803
|
19,355
|
1,682
|
8.49
|
448
|
2.31
|
|||||||||||||||||||||
Occupancy and equipment
|
6,909
|
6,294
|
5,999
|
615
|
9.77
|
295
|
4.92
|
|||||||||||||||||||||
Outside data processing
|
5,782
|
5,199
|
5,173
|
583
|
11.21
|
26
|
0.50
|
|||||||||||||||||||||
Professional fees
|
1,131
|
1,506
|
975
|
(375
|
)
|
(24.90
|
)
|
531
|
54.46
|
|||||||||||||||||||
Taxes, other than payroll, property and income
|
973
|
888
|
780
|
85
|
9.57
|
108
|
13.85
|
|||||||||||||||||||||
Amortization of intangibles
|
885
|
778
|
974
|
107
|
13.75
|
(196
|
)
|
(20.12
|
)
|
|||||||||||||||||||
OREO gains, losses and expenses, net
|
1,550
|
244
|
1,601
|
1,306
|
535.25
|
(1,357
|
)
|
(84.76
|
)
|
|||||||||||||||||||
Loan collection expenses
|
342
|
746
|
627
|
(404
|
)
|
(54.16
|
)
|
119
|
18.98
|
|||||||||||||||||||
FDIC insurance
|
223
|
564
|
675
|
(341
|
)
|
(60.46
|
)
|
(111
|
)
|
(16.44
|
)
|
|||||||||||||||||
Other expenses
|
4,484
|
4,449
|
4,059
|
35
|
0.79
|
390
|
9.61
|
|||||||||||||||||||||
Total non-interest expenses
|
$
|
43,764
|
$
|
40,471
|
$
|
40,218
|
$
|
3,293
|
8.14
|
$
|
253
|
0.63
|
A.
|
Management’s Report on Internal Control Over Financial Reporting
|
/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 12, 2020
|
Date: March 12, 2020
|
2019
|
2018
|
|||||||
ASSETS
|
||||||||
Cash and due from banks
|
$
|
23,091
|
$
|
22,992
|
||||
Interest bearing bank balances
|
65,465
|
39,911
|
||||||
Federal funds sold
|
5,902
|
17,872
|
||||||
Cash and cash equivalents
|
94,458
|
80,775
|
||||||
Time deposits with other banks
|
598
|
1,094
|
||||||
Securities available for sale
|
390,754
|
365,731
|
||||||
Loans
|
1,195,295
|
1,149,301
|
||||||
Allowance for loan losses
|
(13,542
|
)
|
(13,738
|
)
|
||||
Net loans
|
1,181,753
|
1,135,563
|
||||||
Federal Home Loan Bank stock, at cost
|
4,450
|
3,628
|
||||||
Premises and equipment, net
|
37,257
|
29,385
|
||||||
Other real estate owned, net
|
12,242
|
14,024
|
||||||
Interest receivable
|
4,699
|
4,295
|
||||||
Goodwill
|
47,640
|
47,640
|
||||||
Other intangible assets
|
5,376
|
5,268
|
||||||
Deferred taxes
|
-
|
1,541
|
||||||
Other assets
|
1,783
|
1,171
|
||||||
Total assets
|
$
|
1,781,010
|
$
|
1,690,115
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Deposits
|
||||||||
Non-interest bearing
|
$
|
367,870
|
$
|
391,763
|
||||
Time deposits, $250,000 and over
|
100,638
|
74,161
|
||||||
Other interest bearing
|
1,027,245
|
964,203
|
||||||
Total deposits
|
1,495,753
|
1,430,127
|
||||||
Securities sold under agreements to repurchase
|
20,428
|
22,062
|
||||||
Other borrowed funds
|
-
|
2,500
|
||||||
FHLB advances
|
6,375
|
8,819
|
||||||
Subordinated debt
|
5,436
|
5,406
|
||||||
Interest payable
|
912
|
733
|
||||||
Deferred taxes
|
811
|
-
|
||||||
Other liabilities
|
11,054
|
3,739
|
||||||
Total liabilities
|
1,540,769
|
1,473,386
|
||||||
Stockholders' equity
|
||||||||
Common stock, no par value; 30,000,000 shares authorized; 14,657,432 shares issued and outstanding in 2019, and
14,624,193 shares issued and outstanding in 2018
|
133,795
|
133,248
|
||||||
Retained earnings
|
102,743
|
87,333
|
||||||
Accumulated other comprehensive income (loss)
|
3,703
|
(3,852
|
)
|
|||||
Total stockholders' equity
|
240,241
|
216,729
|
||||||
Total liabilities and stockholders' equity
|
$
|
1,781,010
|
$
|
1,690,115
|
2019
|
2018
|
2017
|
||||||||||
Interest income
|
||||||||||||
Loans, including fees
|
$
|
65,237
|
$
|
56,856
|
$
|
55,425
|
||||||
Securities available for sale
|
||||||||||||
Taxable
|
9,261
|
7,022
|
5,628
|
|||||||||
Tax-exempt
|
348
|
254
|
261
|
|||||||||
Federal funds sold and other
|
1,732
|
1,689
|
676
|
|||||||||
Total interest income
|
76,578
|
65,821
|
61,990
|
|||||||||
Interest expense
|
||||||||||||
Deposits
|
9,009
|
5,444
|
3,855
|
|||||||||
Repurchase agreements and other
|
70
|
34
|
33
|
|||||||||
FHLB advances and other borrowings
|
229
|
237
|
319
|
|||||||||
Subordinated debt
|
369
|
352
|
295
|
|||||||||
Total interest expense
|
9,677
|
6,067
|
4,502
|
|||||||||
Net interest income
|
66,901
|
59,754
|
57,488
|
|||||||||
Provision for loan losses
|
1,250
|
2,315
|
2,499
|
|||||||||
Net interest income after provision for loan losses
|
65,651
|
57,439
|
54,989
|
|||||||||
Non-interest income
|
||||||||||||
Service charges on deposit accounts
|
4,661
|
4,562
|
4,357
|
|||||||||
Electronic banking income
|
3,488
|
3,530
|
3,260
|
|||||||||
Secondary market mortgage income
|
214
|
180
|
201
|
|||||||||
Other
|
971
|
826
|
837
|
|||||||||
9,334
|
9,098
|
8,655
|
||||||||||
Non-interest expenses
|
||||||||||||
Salaries and employee benefits
|
21,485
|
19,803
|
19,355
|
|||||||||
Occupancy and equipment expenses
|
6,909
|
6,294
|
5,999
|
|||||||||
Outside data processing
|
5,782
|
5,199
|
5,173
|
|||||||||
Professional fees
|
1,131
|
1,506
|
975
|
|||||||||
Taxes, other than payroll, property and income
|
973
|
888
|
780
|
|||||||||
Write-downs, expenses, sales of other real estate owned, net
|
1,550
|
244
|
1,601
|
|||||||||
Loan collection expenses
|
342
|
746
|
627
|
|||||||||
FDIC insurance
|
223
|
564
|
675
|
|||||||||
Amortization of intangibles
|
885
|
778
|
974
|
|||||||||
Other expenses
|
4,484
|
4,449
|
4,059
|
|||||||||
43,764
|
40,471
|
40,218
|
||||||||||
Income before income taxes
|
31,221
|
26,066
|
23,426
|
|||||||||
Provision for income taxes
|
7,025
|
5,898
|
8,607
|
|||||||||
Net income
|
$
|
24,196
|
$
|
20,168
|
$
|
14,819
|
||||||
Earnings per share:
|
||||||||||||
Basic
|
$
|
1.65
|
$
|
1.48
|
$
|
1.11
|
||||||
Diluted
|
1.64
|
1.47
|
1.10
|
|||||||||
Dividends per share
|
0.60
|
0.57
|
0.48
|
2019
|
2018
|
2017
|
||||||||||
Net income
|
$
|
24,196
|
$
|
20,168
|
$
|
14,819
|
||||||
Other comprehensive income (loss):
|
||||||||||||
Unrealized gains (losses) arising during the period
|
9,564
|
(2,252
|
)
|
334
|
||||||||
Reclassification of realized amount
|
-
|
-
|
-
|
|||||||||
Net change in unrealized gain (loss) on securities
|
9,564
|
(2,252
|
)
|
334
|
||||||||
Less tax impact
|
2,009
|
(473
|
)
|
118
|
||||||||
Other comprehensive income (loss):
|
7,555
|
(1,779
|
)
|
216
|
||||||||
Comprehensive income
|
$
|
31,751
|
$
|
18,389
|
$
|
15,035
|
Common
Stock
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Total
|
|||||||||||||
Balances, January 1, 2017
|
$
|
109,911
|
$
|
66,195
|
$
|
(1,922
|
)
|
$
|
174,184
|
|||||||
Net income
|
-
|
14,819
|
-
|
14,819
|
||||||||||||
Other comprehensive income
|
-
|
-
|
216
|
216
|
||||||||||||
Cash dividends paid ($0.48 per share)
|
-
|
(6,398
|
)
|
-
|
(6,398
|
)
|
||||||||||
Reclassify stranded tax effects within AOCI
|
-
|
367
|
(367
|
)
|
-
|
|||||||||||
Stock options exercised
|
317
|
-
|
-
|
317
|
||||||||||||
Stock based compensation expense
|
217
|
-
|
-
|
217
|
||||||||||||
Balances, December 31, 2017
|
110,445
|
74,983
|
(2,073
|
)
|
183,355
|
|||||||||||
Net income
|
-
|
20,168
|
-
|
20,168
|
||||||||||||
Other comprehensive income (loss)
|
-
|
-
|
(1,779
|
)
|
(1,779
|
)
|
||||||||||
Cash dividends paid ($0.57 per share)
|
-
|
(7,805
|
)
|
-
|
(7,805
|
)
|
||||||||||
Cash in lieu of fractional share for 5 for 4 stock split
|
-
|
(13
|
)
|
-
|
(13
|
)
|
||||||||||
Stock issued to acquire subsidiary, net
|
22,358
|
-
|
-
|
22,358
|
||||||||||||
Stock options exercised
|
193
|
-
|
-
|
193
|
||||||||||||
Stock based compensation expense
|
252
|
-
|
-
|
252
|
||||||||||||
Balances, December 31, 2018
|
133,248
|
87,333
|
(3,852
|
)
|
216,729
|
|||||||||||
Net income
|
-
|
24,196
|
-
|
24,196
|
||||||||||||
Other comprehensive income (loss)
|
-
|
-
|
7,555
|
7,555
|
||||||||||||
Cash dividends paid ($0.60 per share)
|
-
|
(8,786
|
)
|
-
|
(8,786
|
)
|
||||||||||
Stock options exercised
|
246
|
-
|
-
|
246
|
||||||||||||
Stock based compensation expense
|
301
|
-
|
-
|
301
|
||||||||||||
Balances, December 31, 2019
|
$
|
133,795
|
$
|
102,743
|
$
|
3,703
|
$
|
240,241
|
2019
|
2018
|
2017
|
||||||||||
Cash flows from operating activities
|
||||||||||||
Net income
|
$
|
24,196
|
$
|
20,168
|
$
|
14,819
|
||||||
Adjustments to reconcile net income to net cash
from operating activities
|
||||||||||||
Depreciation
|
2,046
|
1,722
|
1,720
|
|||||||||
Provision for loan losses
|
1,250
|
2,315
|
2,499
|
|||||||||
Amortization (accretion), net
|
7
|
1,295
|
1,586
|
|||||||||
Writedowns (gains) on other real estate owned, net
|
978
|
(450
|
)
|
874
|
||||||||
Stock compensation expense
|
301
|
252
|
217
|
|||||||||
Changes in:
|
||||||||||||
Interest receivable
|
(59
|
)
|
300
|
(181
|
)
|
|||||||
Deferred income taxes
|
512
|
33
|
797
|
|||||||||
Other assets
|
287
|
1,404
|
(1,047
|
)
|
||||||||
Interest payable
|
54
|
157
|
29
|
|||||||||
Other liabilities
|
(341
|
)
|
(62
|
)
|
(922
|
)
|
||||||
Net cash from operating activities
|
29,231
|
27,134
|
20,391
|
|||||||||
Cash flows from investing activities
|
||||||||||||
Net change on time deposits with other banks
|
496
|
1,488
|
(250
|
)
|
||||||||
Purchases of securities available for sale
|
(66,684
|
)
|
(110,869
|
)
|
(57,223
|
)
|
||||||
Proceeds from maturities, sales and calls of securities
available for sale
|
95,014
|
65,181
|
65,794
|
|||||||||
Purchase of FHLB stock
|
(10
|
)
|
-
|
-
|
||||||||
Redemption of FHLB stock
|
273
|
792
|
15
|
|||||||||
Acquisition of subsidiary, net of cash acquired (paid)
|
(4,863
|
)
|
2,591
|
-
|
||||||||
Net change in loans
|
(5,241
|
)
|
13,431
|
(36,792
|
)
|
|||||||
Purchases of premises and equipment, net
|
(1,589
|
)
|
(3,460
|
)
|
(1,382
|
)
|
||||||
Proceeds from sales of other real estate owned
|
2,348
|
7,778
|
4,577
|
|||||||||
Net cash from (used in) investing activities
|
19,744
|
(23,068
|
)
|
(25,261
|
)
|
2019
|
2018
|
2017
|
||||||||||
Cash flows from financing activities
|
||||||||||||
Net change in deposits
|
(20,118
|
)
|
25,280
|
(6,735
|
)
|
|||||||
Net change in agreements to repurchase securities
|
(1,634
|
)
|
(1,609
|
)
|
(510
|
)
|
||||||
Repayment of other borrowed funds
|
(2,500
|
)
|
(2,500
|
)
|
(3,859
|
)
|
||||||
Repayment of other FHLB advances
|
(2,500
|
)
|
(19,500
|
)
|
-
|
|||||||
Proceeds from stock option exercises
|
246
|
193
|
317
|
|||||||||
Cash in lieu of fractional shares
|
-
|
(13
|
)
|
-
|
||||||||
Common stock dividends paid
|
(8,786
|
)
|
(7,805
|
)
|
(6,398
|
)
|
||||||
Net cash from (used in) financing activities
|
(35,292
|
)
|
(5,954
|
)
|
(17,185
|
)
|
||||||
Net change in cash and cash equivalents
|
13,683
|
(1,888
|
)
|
(22,055
|
)
|
|||||||
Cash and cash equivalents at beginning of year
|
80,775
|
82,663
|
104,718
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
94,458
|
$
|
80,775
|
$
|
82,663
|
||||||
Supplemental disclosures of cash flow information:
|
||||||||||||
Cash paid during year for -
|
||||||||||||
Interest
|
$
|
9,623
|
$
|
5,911
|
$
|
4,473
|
||||||
Income taxes paid, net
|
6,943
|
4,578
|
8,555
|
|||||||||
Non-cash transactions
|
||||||||||||
Loans transferred to real estate acquired through foreclosure
|
$
|
1,509
|
$
|
1,386
|
$
|
12,681
|
||||||
Amount transferred from accumulated other comprehensive income to retained earnings related to changes in future income
tax rates
|
$
|
367
|
||||||||||
Common stock issued to acquire First Bank
|
$
|
22,358
|
||||||||||
Operating right-of-use asset resulting from lease liability
|
$
|
7,152
|
Unaudited
|
||||||||||||
December 31, 2019
|
||||||||||||
Subsidiary
|
Location
|
Year
Acquired
|
Total
Assets
|
Net
Income
|
||||||||
Citizens Deposit Bank & Trust
|
Vanceburg, Kentucky
|
1991
|
$
|
552,704
|
$
|
6,012
|
||||||
Premier Bank, Inc.
|
Huntington, West Virginia
|
1998
|
1,220,801
|
20,505
|
||||||||
Parent and Intercompany Eliminations
|
7,505
|
(2,321
|
)
|
|||||||||
Consolidated total
|
$
|
1,781,010
|
$
|
24,196
|
2019
|
$
|
-
|
||
2020
|
149
|
|||
2021
|
127
|
|||
2022
|
108
|
|||
2023
|
92
|
|||
2024
|
86
|
|||
Thereafter
|
432
|
|||
Total core deposit intangible acquired
|
$
|
994
|
First National Bank of Jackson
|
||||
Cash and due from banks
|
$
|
4,589
|
||
Federal funds sold
|
5,108
|
|||
Securities available for sale
|
44,747
|
|||
Loans, net
|
41,632
|
|||
Premises and equipment
|
1,177
|
|||
Goodwill and other intangible assets
|
994
|
|||
Other assets
|
2,548
|
|||
Total assets acquired, net of cash paid
|
100,795
|
|||
Deposits
|
(85,606
|
)
|
||
Other liabilities
|
(629
|
)
|
||
Total liabilities assumed
|
(86,235
|
)
|
||
Net assets acquired
|
$
|
14,560
|
2019
|
Amortized Cost
|
Unrealized Gains
|
Unrealized Losses
|
Fair Value
|
||||||||||||
Available for sale
|
||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||
U. S. sponsored agency MBS - residential
|
$
|
276,013
|
$
|
3,618
|
$
|
(322
|
)
|
$
|
279,309
|
|||||||
U. S. sponsored agency CMO’s - residential
|
61,989
|
768
|
(113
|
)
|
62,644
|
|||||||||||
Total mortgage-backed securities of government sponsored agencies
|
338,002
|
4,386
|
(435
|
)
|
341,953
|
|||||||||||
U. S. government sponsored agency securities
|
30,538
|
280
|
(88
|
)
|
30,730
|
|||||||||||
Obligations of states and political subdivisions
|
15,570
|
453
|
(6
|
)
|
16,017
|
|||||||||||
Other securities
|
1,956
|
98
|
-
|
2,054
|
||||||||||||
Total securities available for sale
|
$
|
386,066
|
$
|
5,217
|
$
|
(529
|
)
|
$
|
390,754
|
2018
|
Amortized Cost
|
Unrealized Gains
|
Unrealized Losses
|
Fair Value
|
||||||||||||
Available for sale
|
||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||
U. S. sponsored agency MBS - residential
|
$
|
259,575
|
$
|
513
|
$
|
(4,846
|
)
|
$
|
255,242
|
|||||||
U. S. sponsored agency CMO’s - residential
|
69,231
|
94
|
(782
|
)
|
68,543
|
|||||||||||
Total mortgage-backed securities of government sponsored agencies
|
328,806
|
607
|
(5,628
|
)
|
323,785
|
|||||||||||
U. S. government sponsored agency securities
|
24,154
|
196
|
(180
|
)
|
24,170
|
|||||||||||
Obligations of states and political subdivisions
|
14,194
|
176
|
(43
|
)
|
14,327
|
|||||||||||
Other securities
|
3,453
|
6
|
(10
|
)
|
3,449
|
|||||||||||
Total securities available for sale
|
$
|
370,607
|
$
|
985
|
$
|
(5,861
|
)
|
$
|
365,731
|
Amortized
Cost
|
Fair
Value
|
|||||||
Available for sale
|
||||||||
Due in one year or less
|
$
|
9,436
|
$
|
9,455
|
||||
Due after one year through five years
|
16,530
|
16,870
|
||||||
Due after five years through ten years
|
16,455
|
16,511
|
||||||
Due after ten years
|
5,643
|
5,965
|
||||||
Mortgage-backed securities of government sponsored agencies
|
338,002
|
341,953
|
||||||
Total available for sale
|
$
|
386,066
|
$
|
390,754
|
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
|
$
|
10,851
|
$
|
(84
|
)
|
$
|
3,957
|
$
|
(4
|
)
|
$
|
14,808
|
$
|
(88
|
)
|
|||||||||
U.S government sponsored agency MBS – residential
|
50,945
|
(199
|
)
|
12,930
|
(123
|
)
|
63,875
|
(322
|
)
|
|||||||||||||||
U.S government sponsored agency CMO’s – residential
|
4,376
|
(3
|
)
|
8,815
|
(110
|
)
|
13,191
|
(113
|
)
|
|||||||||||||||
Obligations of states and political subdivisions
|
1,866
|
(6
|
)
|
-
|
-
|
1,866
|
(6
|
)
|
||||||||||||||||
Total temporarily impaired
|
$
|
68,038
|
$
|
(292
|
)
|
$
|
25,702
|
$
|
(237
|
)
|
$
|
93,740
|
$
|
(529
|
)
|
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
|
$
|
999
|
$
|
-
|
$
|
11,057
|
$
|
(180
|
)
|
$
|
12,056
|
$
|
(180
|
)
|
||||||||||
U.S government sponsored agency MBS – residential
|
50,923
|
(243
|
)
|
158,791
|
(4,603
|
)
|
209,714
|
(4,846
|
)
|
|||||||||||||||
U.S government sponsored agency CMO’s – residential
|
16,359
|
(41
|
)
|
26,386
|
(741
|
)
|
42,745
|
(782
|
)
|
|||||||||||||||
Obligations of states and political subdivisions
|
679
|
(6
|
)
|
3,454
|
(37
|
)
|
4,133
|
(43
|
)
|
|||||||||||||||
Other securities
|
1,712
|
(10
|
)
|
-
|
-
|
1,712
|
(10
|
)
|
||||||||||||||||
Total temporarily impaired
|
$
|
70,672
|
$
|
(300
|
)
|
$
|
199,688
|
$
|
(5,561
|
)
|
$
|
270,360
|
$
|
(5,861
|
)
|
2019
|
2018
|
|||||||
Residential real estate
|
$
|
389,985
|
$
|
381,027
|
||||
Multifamily real estate
|
36,684
|
54,016
|
||||||
Commercial real estate:
|
||||||||
Owner occupied
|
164,218
|
138,209
|
||||||
Non-owner occupied
|
304,316
|
282,608
|
||||||
Commercial and industrial
|
105,079
|
103,624
|
||||||
Consumer
|
29,007
|
27,688
|
||||||
Construction and land
|
136,138
|
128,926
|
||||||
All other
|
29,868
|
33,203
|
||||||
Total
|
$
|
1,195,295
|
$
|
1,149,301
|
2019
|
||||
Residential real estate
|
$
|
15,156
|
||
Multifamily real estate
|
2,220
|
|||
Commercial real estate:
|
||||
Owner occupied
|
3,364
|
|||
Non owner occupied
|
7,174
|
|||
Commercial and industrial
|
4,133
|
|||
Consumer
|
4,644
|
|||
Construction and land
|
3,116
|
|||
All other
|
1,825
|
|||
Total
|
$
|
41,632
|
Balance, December 31, 2018
|
$
|
12,973
|
||
Additions, including loans now meeting disclosure requirements
|
7,851
|
|||
Amounts collected and loans no longer meeting disclosure requirements
|
(6,834
|
)
|
||
Balance, December 31, 2019
|
$
|
13,990
|
Loan Class
|
Balance
Dec 31, 2018 |
Provision (credit) for loan losses
|
Loans charged-off
|
Recoveries
|
Balance
Dec 31, 2019
|
|||||||||||||||
Residential real estate
|
$
|
1,808
|
$
|
73
|
$
|
(207
|
)
|
$
|
37
|
$
|
1,711
|
|||||||||
Multifamily real estate
|
1,649
|
298
|
-
|
7
|
1,954
|
|||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
2,120
|
880
|
(565
|
)
|
6
|
2,441
|
||||||||||||||
Non-owner occupied
|
3,058
|
178
|
(57
|
)
|
5
|
3,184
|
||||||||||||||
Commercial and industrial
|
1,897
|
232
|
(418
|
)
|
56
|
1,767
|
||||||||||||||
Consumer
|
351
|
81
|
(193
|
)
|
42
|
281
|
||||||||||||||
Construction and land
|
2,255
|
(517
|
)
|
(14
|
)
|
-
|
1,724
|
|||||||||||||
All other
|
600
|
25
|
(262
|
)
|
117
|
480
|
||||||||||||||
Total
|
$
|
13,738
|
$
|
1,250
|
$
|
(1,716
|
)
|
$
|
270
|
$
|
13,542
|
Loan Class
|
Balance
Dec 31, 2017
|
Provision (credit) for loan losses
|
Loans
charged-off
|
Recoveries
|
Balance
Dec 31, 2018 |
|||||||||||||||
Residential real estate
|
$
|
2,986
|
$
|
(967
|
)
|
$
|
(247
|
)
|
$
|
36
|
$
|
1,808
|
||||||||
Multifamily real estate
|
978
|
676
|
(11
|
)
|
6
|
1,649
|
||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
1,653
|
491
|
(25
|
)
|
1
|
2,120
|
||||||||||||||
Non-owner occupied
|
2,313
|
839
|
(98
|
)
|
4
|
3,058
|
||||||||||||||
Commercial and industrial
|
1,101
|
1,298
|
(545
|
)
|
43
|
1,897
|
||||||||||||||
Consumer
|
328
|
121
|
(156
|
)
|
58
|
351
|
||||||||||||||
Construction and land
|
2,408
|
(533
|
)
|
(20
|
)
|
400
|
2,255
|
|||||||||||||
All other
|
337
|
390
|
(266
|
)
|
139
|
600
|
||||||||||||||
Total
|
$
|
12,104
|
$
|
2,315
|
$
|
(1,368
|
)
|
$
|
687
|
$
|
13,738
|
Loan Class
|
Balance
Dec 31, 2016
|
Provision (credit) for loan losses
|
Loans
charged-off
|
Recoveries
|
Balance
Dec 31, 2017
|
|||||||||||||||
Residential real estate
|
$
|
2,948
|
$
|
439
|
$
|
(458
|
)
|
$
|
57
|
$
|
2,986
|
|||||||||
Multifamily real estate
|
785
|
693
|
(500
|
)
|
-
|
978
|
||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
1,543
|
(100
|
)
|
(32
|
)
|
242
|
1,653
|
|||||||||||||
Non-owner occupied
|
2,350
|
(27
|
)
|
(10
|
)
|
-
|
2,313
|
|||||||||||||
Commercial and industrial
|
1,140
|
51
|
(189
|
)
|
99
|
1,101
|
||||||||||||||
Consumer
|
347
|
132
|
(278
|
)
|
127
|
328
|
||||||||||||||
Construction and land
|
1,397
|
1,130
|
(129
|
)
|
10
|
2,408
|
||||||||||||||
All other
|
326
|
181
|
(307
|
)
|
137
|
337
|
||||||||||||||
Total
|
$
|
10,836
|
$
|
2,499
|
$
|
(1,903
|
)
|
$
|
672
|
$
|
12,104
|
2019
|
2018
|
|||||||
Residential real estate
|
$
|
2,565
|
$
|
2,665
|
||||
Commercial real estate
|
||||||||
Owner occupied
|
1,804
|
2,040
|
||||||
Non-owner occupied
|
2,628
|
3,434
|
||||||
Commercial and industrial
|
305
|
1,720
|
||||||
Consumer
|
22
|
-
|
||||||
Construction and land
|
483
|
1,212
|
||||||
All other
|
174
|
225
|
||||||
Total carrying amount
|
$
|
7,981
|
$
|
11,296
|
||||
Contractual principal balance
|
$
|
11,681
|
$
|
15,436
|
||||
Carrying amount, net of allowance
|
$
|
7,981
|
$
|
11,296
|
2019
|
2018
|
2017
|
||||||||||
Balance at January 1
|
$
|
642
|
$
|
754
|
$
|
1,208
|
||||||
New loans purchased
|
371
|
139
|
-
|
|||||||||
Accretion of income
|
(180
|
)
|
(134
|
)
|
(249
|
)
|
||||||
Loans placed on non-accrual
|
(82
|
)
|
(63
|
)
|
-
|
|||||||
Income recognized upon full repayment
|
(79
|
)
|
(38
|
)
|
(205
|
)
|
||||||
Reclassifications from non-accretable difference
|
-
|
(16
|
)
|
-
|
||||||||
Disposals
|
(53
|
)
|
-
|
-
|
||||||||
Balance at December 31
|
$
|
619
|
$
|
642
|
$
|
754
|
December 31, 2019
|
Principal Owed on Non-accrual Loans
|
Recorded Investment in Non-accrual Loans
|
Loans Past Due Over 90 Days, still accruing
|
|||||||||
Residential real estate
|
$
|
5,801
|
$
|
4,618
|
$
|
1,425
|
||||||
Multifamily real estate
|
4,113
|
3,726
|
-
|
|||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
3,399
|
2,995
|
-
|
|||||||||
Non-owner occupied
|
3,120
|
1,852
|
340
|
|||||||||
Commercial and industrial
|
1,026
|
420
|
451
|
|||||||||
Consumer
|
364
|
313
|
9
|
|||||||||
Construction and land
|
470
|
440
|
3
|
|||||||||
All other
|
75
|
73
|
-
|
|||||||||
Total
|
$
|
18,368
|
$
|
14,437
|
$
|
2,228
|
December 31, 2018
|
Principal Owed on Non-accrual Loans
|
Recorded Investment in Non-accrual Loans
|
Loans Past Due Over 90 Days, still accruing
|
|||||||||
Residential real estate
|
$
|
4,966
|
$
|
3,708
|
$
|
954
|
||||||
Multifamily real estate
|
4,127
|
3,905
|
-
|
|||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
3,692
|
3,436
|
56
|
|||||||||
Non-owner occupied
|
5,761
|
4,592
|
76
|
|||||||||
Commercial and industrial
|
1,303
|
625
|
-
|
|||||||||
Consumer
|
292
|
253
|
-
|
|||||||||
Construction and land
|
857
|
856
|
-
|
|||||||||
All other
|
75
|
73
|
-
|
|||||||||
Total
|
$
|
21,073
|
$
|
17,448
|
$
|
1,086
|
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
|
$
|
389,985
|
$
|
9,479
|
$
|
3,192
|
$
|
12,671
|
$
|
377,314
|
||||||||||
Multifamily real estate
|
36,684
|
-
|
3,726
|
3,726
|
32,958
|
|||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
164,218
|
337
|
1,199
|
1,536
|
162,682
|
|||||||||||||||
Non-owner occupied
|
304,316
|
838
|
1,017
|
1,855
|
302,461
|
|||||||||||||||
Commercial and industrial
|
105,079
|
245
|
708
|
953
|
104,126
|
|||||||||||||||
Consumer
|
29,007
|
309
|
230
|
539
|
28,468
|
|||||||||||||||
Construction and land
|
136,138
|
3,856
|
4
|
3,860
|
132,278
|
|||||||||||||||
All other
|
29,868
|
-
|
73
|
73
|
29,795
|
|||||||||||||||
Total
|
$
|
1,195,295
|
$
|
15,064
|
$
|
10,149
|
$
|
25,213
|
$
|
1,170,082
|
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
|
$
|
381,027
|
$
|
7,078
|
$
|
2,594
|
$
|
9,672
|
$
|
371,355
|
||||||||||
Multifamily real estate
|
54,016
|
-
|
110
|
110
|
53,906
|
|||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
138,209
|
124
|
2,601
|
2,725
|
135,484
|
|||||||||||||||
Non-owner occupied
|
282,608
|
172
|
3,301
|
3,473
|
279,135
|
|||||||||||||||
Commercial and industrial
|
103,624
|
2,235
|
262
|
2,497
|
101,127
|
|||||||||||||||
Consumer
|
27,688
|
247
|
112
|
359
|
27,329
|
|||||||||||||||
Construction and land
|
128,926
|
388
|
810
|
1,198
|
127,728
|
|||||||||||||||
All other
|
33,203
|
546
|
73
|
619
|
32,584
|
|||||||||||||||
Total
|
$
|
1,149,301
|
$
|
10,790
|
$
|
9,863
|
$
|
20,653
|
$
|
1,128,648
|
December 31, 2019
|
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
|
$
|
-
|
$
|
1,711
|
$
|
-
|
$
|
1,711
|
$
|
63
|
$
|
387,357
|
$
|
2,565
|
$
|
389,985
|
||||||||||||||||
Multifamily real estate
|
1,737
|
217
|
-
|
1,954
|
3,726
|
32,958
|
-
|
36,684
|
||||||||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||||||
Owner occupied
|
653
|
1,788
|
-
|
2,441
|
2,685
|
159,729
|
1,804
|
164,218
|
||||||||||||||||||||||||
Non-owner occupied
|
271
|
2,913
|
-
|
3,184
|
3,830
|
297,858
|
2,628
|
304,316
|
||||||||||||||||||||||||
Commercial and industrial
|
390
|
1,377
|
-
|
1,767
|
678
|
104,096
|
305
|
105,079
|
||||||||||||||||||||||||
Consumer
|
-
|
281
|
-
|
281
|
-
|
28,985
|
22
|
29,007
|
||||||||||||||||||||||||
Construction and land
|
51
|
1,673
|
-
|
1,724
|
431
|
135,224
|
483
|
136,138
|
||||||||||||||||||||||||
All other
|
-
|
480
|
-
|
480
|
-
|
29,694
|
174
|
29,868
|
||||||||||||||||||||||||
Total
|
$
|
3,102
|
$
|
10,440
|
$
|
-
|
$
|
13,542
|
$
|
11,413
|
$
|
1,175,901
|
$
|
7,981
|
$
|
1,195,295
|
December 31, 2018
|
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
|
$
|
-
|
$
|
1,808
|
$
|
-
|
$
|
1,808
|
$
|
298
|
$
|
378,064
|
$
|
2,665
|
$
|
381,027
|
||||||||||||||||
Multifamily real estate
|
1,281
|
368
|
-
|
1,649
|
3,905
|
50,111
|
-
|
54,016
|
||||||||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||||||
Owner occupied
|
692
|
1,428
|
-
|
2,120
|
2,820
|
133,349
|
2,040
|
138,209
|
||||||||||||||||||||||||
Non-owner occupied
|
267
|
2,791
|
-
|
3,058
|
10,111
|
269,063
|
3,434
|
282,608
|
||||||||||||||||||||||||
Commercial and industrial
|
414
|
1,483
|
-
|
1,897
|
558
|
101,346
|
1,720
|
103,624
|
||||||||||||||||||||||||
Consumer
|
-
|
351
|
-
|
351
|
-
|
27,688
|
-
|
27,688
|
||||||||||||||||||||||||
Construction and land
|
142
|
2,113
|
-
|
2,255
|
1,351
|
126,363
|
1,212
|
128,926
|
||||||||||||||||||||||||
All other
|
-
|
600
|
-
|
600
|
-
|
32,978
|
225
|
33,203
|
||||||||||||||||||||||||
Total
|
$
|
2,796
|
$
|
10,942
|
$
|
-
|
$
|
13,738
|
$
|
19,043
|
$
|
1,118,962
|
$
|
11,296
|
$
|
1,149,301
|
Unpaid Principal Balance
|
Recorded Investment
|
Allowance for Loan Losses Allocated
|
||||||||||
With no related allowance recorded:
|
||||||||||||
Residential real estate
|
$
|
188
|
$
|
63
|
$
|
-
|
||||||
Multifamily real estate
|
96
|
89
|
-
|
|||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
2,201
|
1,842
|
-
|
|||||||||
Non-owner occupied
|
2,512
|
1,732
|
-
|
|||||||||
Commercial and industrial
|
509
|
-
|
-
|
|||||||||
5,506
|
3,726
|
-
|
||||||||||
With an allowance recorded:
|
||||||||||||
Multifamily real estate
|
$
|
4,017
|
$
|
3,637
|
$
|
1,737
|
||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
1,189
|
1,162
|
653
|
|||||||||
Non-owner occupied
|
2,654
|
2,537
|
271
|
|||||||||
Commercial and industrial
|
689
|
678
|
390
|
|||||||||
Construction and land
|
460
|
431
|
51
|
|||||||||
9,009
|
8,445
|
3,102
|
||||||||||
Total
|
$
|
14,515
|
$
|
12,171
|
$
|
3,102
|
Unpaid Principal Balance
|
Recorded Investment
|
Allowance for Loan Losses Allocated
|
||||||||||
With no related allowance recorded:
|
||||||||||||
Residential real estate
|
$
|
426
|
$
|
298
|
$
|
-
|
||||||
Multifamily real estate
|
110
|
110
|
-
|
|||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
1,305
|
1,092
|
-
|
|||||||||
Non-owner occupied
|
8,458
|
7,740
|
-
|
|||||||||
Commercial and industrial
|
531
|
-
|
-
|
|||||||||
Construction and land
|
786
|
786
|
-
|
|||||||||
11,616
|
10,026
|
-
|
||||||||||
With an allowance recorded:
|
||||||||||||
Multifamily real estate
|
$
|
4,016
|
$
|
3,795
|
$
|
1,281
|
||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
2,523
|
2,478
|
692
|
|||||||||
Non-owner occupied
|
2,852
|
2,781
|
267
|
|||||||||
Commercial and industrial
|
562
|
558
|
414
|
|||||||||
Construction and land
|
565
|
565
|
142
|
|||||||||
10,518
|
10,177
|
2,796
|
||||||||||
Total
|
$
|
22,134
|
$
|
20,203
|
$
|
2,796
|
Year ended Dec 31, 2019
|
Year ended Dec 31, 2018
|
Year ended Dec 31, 2017
|
||||||||||||||||||||||||||||||||||
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
|
$
|
186
|
$
|
-
|
$
|
-
|
$
|
300
|
$
|
-
|
$
|
-
|
$
|
333
|
$
|
3
|
$
|
3
|
||||||||||||||||||
Multifamily real estate
|
3,803
|
-
|
-
|
2,534
|
11
|
11
|
11,376
|
262
|
246
|
|||||||||||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||||||||||
Owner occupied
|
3,624
|
14
|
15
|
3,094
|
57
|
57
|
3,335
|
74
|
74
|
|||||||||||||||||||||||||||
Non-owner occupied
|
8,062
|
712
|
712
|
9,226
|
412
|
412
|
4,680
|
213
|
213
|
|||||||||||||||||||||||||||
Commercial and industrial
|
549
|
4
|
4
|
904
|
22
|
22
|
1,480
|
123
|
123
|
|||||||||||||||||||||||||||
Construction and land
|
814
|
123
|
123
|
3,977
|
24
|
15
|
7,804
|
314
|
309
|
|||||||||||||||||||||||||||
All other
|
-
|
-
|
-
|
173
|
10
|
10
|
302
|
18
|
18
|
|||||||||||||||||||||||||||
Total
|
$
|
17,038
|
$
|
854
|
$
|
855
|
$
|
20,208
|
$
|
536
|
$
|
527
|
$
|
29,310
|
$
|
1,007
|
$
|
986
|
December 31, 2019
|
TDR’s on
Non-accrual
|
Other TDR’s
|
Total TDR’s
|
|||||||||
Residential real estate
|
$
|
32
|
$
|
157
|
$
|
189
|
||||||
Multifamily real estate
|
3,636
|
-
|
3,636
|
|||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
1,162
|
207
|
1,369
|
|||||||||
Non-owner occupied
|
-
|
2,656
|
2,656
|
|||||||||
Commercial and industrial
|
191
|
-
|
191
|
|||||||||
Total
|
$
|
5,021
|
$
|
3,020
|
$
|
8,041
|
December 31, 2018
|
TDR’s on
Non-accrual
|
Other TDR’s
|
Total TDR’s
|
|||||||||
Residential real estate
|
$
|
347
|
$
|
97
|
$
|
444
|
||||||
Multifamily real estate
|
3,795
|
-
|
3,795
|
|||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
1,647
|
222
|
1,869
|
|||||||||
Non-owner occupied
|
-
|
5,964
|
5,964
|
|||||||||
Commercial and industrial
|
191
|
-
|
191
|
|||||||||
Total
|
$
|
5,980
|
$
|
6,283
|
$
|
12,263
|
Loan Class
|
Pass
|
Special Mention
|
Substandard
|
Doubtful
|
Total Loans
|
|||||||||||||||
Residential real estate
|
$
|
374,835
|
$
|
3,477
|
$
|
11,673
|
$
|
-
|
$
|
389,985
|
||||||||||
Multifamily real estate
|
28,103
|
4,855
|
3,726
|
-
|
36,684
|
|||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
152,695
|
5,123
|
6,400
|
-
|
164,218
|
|||||||||||||||
Non-owner occupied
|
290,096
|
8,617
|
5,603
|
-
|
304,316
|
|||||||||||||||
Commercial and industrial
|
101,085
|
2,693
|
1,301
|
-
|
105,079
|
|||||||||||||||
Consumer
|
28,618
|
5
|
384
|
-
|
29,007
|
|||||||||||||||
Construction and land
|
123,473
|
11,868
|
797
|
-
|
136,138
|
|||||||||||||||
All other
|
29,698
|
97
|
73
|
-
|
29,868
|
|||||||||||||||
Total
|
$
|
1,128,603
|
$
|
36,735
|
$
|
29,957
|
$
|
-
|
$
|
1,195,295
|
Loan Class
|
Pass
|
Special Mention
|
Substandard
|
Doubtful
|
Total Loans
|
|||||||||||||||
Residential real estate
|
$
|
369,808
|
$
|
1,376
|
$
|
9,681
|
$
|
162
|
$
|
381,027
|
||||||||||
Multifamily real estate
|
45,187
|
4,924
|
3,905
|
-
|
54,016
|
|||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
126,422
|
4,840
|
6,947
|
-
|
138,209
|
|||||||||||||||
Non-owner occupied
|
262,149
|
7,647
|
12,812
|
-
|
282,608
|
|||||||||||||||
Commercial and industrial
|
96,066
|
5,280
|
2,278
|
-
|
103,624
|
|||||||||||||||
Consumer
|
27,344
|
31
|
313
|
-
|
27,688
|
|||||||||||||||
Construction and land
|
107,196
|
19,728
|
2,002
|
-
|
128,926
|
|||||||||||||||
All other
|
32,749
|
381
|
73
|
-
|
33,203
|
|||||||||||||||
Total
|
$
|
1,066,921
|
$
|
44,207
|
$
|
38,011
|
$
|
162
|
$
|
1,149,301
|
2019
|
2018
|
|||||||
Land and improvements
|
$
|
7,500
|
$
|
7,200
|
||||
Buildings and leasehold improvements
|
26,777
|
26,033
|
||||||
Furniture and equipment
|
12,224
|
11,623
|
||||||
Assets purchased not yet placed in service
|
560
|
424
|
||||||
47,061
|
45,280
|
|||||||
Less: accumulated depreciation
|
(16,956
|
)
|
(15,895
|
)
|
||||
Premises and equipment owned, net
|
30,105
|
29,385
|
||||||
Right of use asset related to operating leases (detailed below)
|
7,152
|
-
|
||||||
Premises and equipment owned, net
|
$
|
37,257
|
$
|
29,385
|
2020
|
$
|
1,059
|
||
2021
|
1,013
|
|||
2022
|
995
|
|||
2023
|
778
|
|||
2024
|
678
|
|||
2025 and thereafter
|
3,495
|
|||
Total undiscounted cash flows
|
8,018
|
|||
Discounted cash flows
|
(866
|
)
|
||
Total lease liability
|
$
|
7,152
|
2019
|
2018
|
2017
|
||||||||||
Beginning of year
|
$
|
47,640
|
$
|
35,371
|
$
|
35,371
|
||||||
Acquired goodwill
|
-
|
12,269
|
-
|
|||||||||
Impairment
|
-
|
-
|
-
|
|||||||||
End of year
|
$
|
47,640
|
$
|
47,640
|
$
|
35,371
|
2019
|
2018
|
|||||||||||||||
Gross Carrying
Amount
|
Accumulated Amortization
|
Gross Carrying
Amount
|
Accumulated Amortization
|
|||||||||||||
Core deposit intangible
|
$
|
8,702
|
$
|
(3,326
|
)
|
$
|
7,708
|
$
|
(2,440
|
)
|
2020
|
$
|
956
|
||
2021
|
882
|
|||
2022
|
686
|
|||
2023
|
612
|
|||
2024
|
606
|
|||
Thereafter
|
1,634
|
|||
$
|
5,376
|
2020
|
$
|
300,312
|
||
2021
|
90,665
|
|||
2022
|
13,754
|
|||
2023
|
10,162
|
|||
2024
|
10,244
|
|||
Thereafter
|
5
|
|||
$
|
425,142
|
2019
|
2018
|
|||||||
Year-end balance
|
$
|
20,428
|
$
|
22,062
|
||||
Average balance during the year
|
$
|
21,704
|
$
|
22,343
|
||||
Average interest rate during the year
|
0.32
|
%
|
0.14
|
%
|
||||
Maximum month-end balance during the year
|
$
|
23,020
|
$
|
25,067
|
||||
Weighted average interest rate at year-end
|
0.49
|
%
|
0.14
|
%
|
2019
|
2018
|
2017
|
||||||||||
Current
|
$
|
6,476
|
$
|
5,782
|
$
|
7,809
|
||||||
Write-off of deferred tax asset related to 2017 Tax Cuts and Jobs Act.
|
-
|
-
|
145
|
|||||||||
Deferred
|
563
|
120
|
637
|
|||||||||
Change in valuation allowance
|
(14
|
)
|
(4
|
)
|
16
|
|||||||
Provision for income taxes
|
$
|
7,025
|
$
|
5,898
|
$
|
8,607
|
2019
|
2018
|
|||||||
Deferred tax assets
|
||||||||
Allowance for loan losses
|
$
|
2,969
|
$
|
2,884
|
||||
Purchase accounting adjustments
|
605
|
963
|
||||||
Net operating loss carryforward
|
453
|
333
|
||||||
Alternative minimum tax credit carryforward
|
3
|
125
|
||||||
Write-downs of other real estate owned
|
374
|
235
|
||||||
Taxable income on non-accrual loans
|
981
|
896
|
||||||
Accrued expenses
|
278
|
235
|
||||||
Unrealized loss on investment securities
|
-
|
1,024
|
||||||
Other
|
16
|
15
|
||||||
Total deferred tax assets
|
5,679
|
6,710
|
||||||
Deferred tax liabilities
|
||||||||
Amortization of intangibles
|
$
|
(3,072
|
)
|
$
|
(3,063
|
)
|
||
Depreciation
|
(1,320
|
)
|
(1,106
|
)
|
||||
Federal Home Loan Bank dividends
|
(267
|
)
|
(224
|
)
|
||||
Deferred loan fees
|
(588
|
)
|
(499
|
)
|
||||
Unrealized gain on investment securities
|
(984
|
)
|
-
|
|||||
Other
|
(101
|
)
|
(105
|
)
|
||||
Total deferred tax liabilities
|
(6,332
|
)
|
(4,997
|
)
|
||||
Valuation allowance on deferred tax assets
|
(158
|
)
|
(172
|
)
|
||||
Net deferred taxes
|
$
|
(811
|
)
|
$
|
1,541
|
2019
|
2018
|
2017
|
||||||||||||||||||||||
U.S. federal income tax rate
|
$
|
6,556
|
21.0
|
%
|
$
|
5,474
|
21.0
|
%
|
$
|
8,200
|
35.0
|
%
|
||||||||||||
Changes from the statutory rate
|
||||||||||||||||||||||||
Change in deferred taxes related to decrease in future federal tax rate
|
-
|
-
|
-
|
-
|
145
|
0.6
|
||||||||||||||||||
State income taxes, net
|
693
|
2.2
|
518
|
2.0
|
503
|
2.1
|
||||||||||||||||||
Tax-exempt interest income
|
(163
|
)
|
(0.5
|
)
|
(143
|
)
|
(0.5
|
)
|
(239
|
)
|
(1.0
|
)
|
||||||||||||
Non-deductible interest expense related to carrying tax-exempt interest earning assets
|
15
|
0.0
|
11
|
0.0
|
13
|
0.1
|
||||||||||||||||||
Non-deductible stock compensation expense, net
|
28
|
0.1
|
12
|
0.0
|
(35
|
)
|
(0.2
|
)
|
||||||||||||||||
Tax credits, net
|
(134
|
)
|
(0.4
|
)
|
(71
|
)
|
(0.3
|
)
|
(42
|
)
|
(0.2
|
)
|
||||||||||||
Change in valuation allowance
|
14
|
0.0
|
4
|
0.0
|
16
|
0.1
|
||||||||||||||||||
Other
|
16
|
0.1
|
93
|
0.4
|
46
|
0.2
|
||||||||||||||||||
$
|
7,025
|
22.5
|
%
|
$
|
5,898
|
22.6
|
%
|
$
|
8,607
|
36.7
|
%
|
2019
|
2018
|
2017
|
||||||||||
Risk-free interest rate
|
2.34
|
%
|
2.69
|
%
|
2.02
|
%
|
||||||
Expected option life (yrs)
|
5.42
|
5.37
|
5.36
|
|||||||||
Expected stock price volatility
|
28.45
|
%
|
22.47
|
%
|
18.40
|
%
|
||||||
Dividend yield
|
3.85
|
%
|
3.17
|
%
|
3.16
|
%
|
||||||
Weighted average fair value of options granted during the year
|
$
|
2.91
|
$
|
2.49
|
$
|
2.32
|
----------2019----------
|
----------2018----------
|
----------2017---------- | ||||||||||||||||||||||
Options
|
Weighted
Average
Exercise
Price
|
Options
|
Weighted
Average
Exercise
Price
|
Options
|
Weighted
Average
Exercise
Price
|
|||||||||||||||||||
Outstanding at beginning of year
|
298,383
|
$
|
11.66
|
262,811
|
$
|
10.63
|
254,988
|
$
|
9.23
|
|||||||||||||||
Grants
|
72,075
|
15.57
|
67,875
|
15.12
|
69,375
|
15.21
|
||||||||||||||||||
Exercises
|
(26,979
|
)
|
10.13
|
(28,151
|
)
|
10.12
|
(40,364
|
)
|
9.10
|
|||||||||||||||
Forfeitures or expired
|
(10,838
|
)
|
14.21
|
(4,152
|
)
|
13.91
|
(21,188
|
)
|
11.71
|
|||||||||||||||
Outstanding at year-end
|
332,641
|
$
|
12.54
|
298,383
|
$
|
11.66
|
262,811
|
$
|
10.63
|
|||||||||||||||
Exercisable at year-end
|
200,123
|
$
|
10.67
|
172,577
|
$
|
9.55
|
145,134
|
$
|
8.53
|
|||||||||||||||
Weighted average remaining life
|
5.0
|
5.2
|
4.3
|
- - - - - - - - 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
|
||||||||||||||||||||||
$4.00 to $6.00
|
32,276
|
$
|
5.28
|
$
|
415
|
32,276
|
1.8
|
$
|
5.28
|
$
|
415
|
||||||||||||||||||
$6.01 to $8.00
|
4,814
|
6.47
|
56
|
4,814
|
0.2
|
6.47
|
56
|
||||||||||||||||||||||
$8.01 to $10.00
|
15,715
|
8.28
|
155
|
15,715
|
3.2
|
8.28
|
155
|
||||||||||||||||||||||
$10.01 to $12.00
|
96,595
|
10.70
|
719
|
96,595
|
5.3
|
10.70
|
719
|
||||||||||||||||||||||
$12.01 to $16.00
|
183,241
|
15.32
|
517
|
50,723
|
8.3
|
15.18
|
150
|
||||||||||||||||||||||
Outstanding at Dec 31, 2019
|
332,641
|
12.54
|
$
|
1,862
|
200,123
|
6.5
|
10.67
|
$
|
1,495
|
2019
|
2018
|
2017
|
||||||||||
Basic earnings per share:
|
||||||||||||
Income available to common stockholders
|
$
|
24,196
|
$
|
20,168
|
$
|
14,819
|
||||||
Weighted average common shares outstanding
|
14,639,775
|
13,634,439
|
13,322,716
|
|||||||||
Earnings per share
|
$
|
1.65
|
$
|
1.48
|
$
|
1.11
|
||||||
Diluted earnings per share:
|
||||||||||||
Income available to common stockholders
|
$
|
24,196
|
$
|
20,168
|
$
|
14,819
|
||||||
Weighted average common shares outstanding
|
14,639,775
|
13,634,439
|
13,322,716
|
|||||||||
Add dilutive effects of potential additional common stock
|
83,367
|
102,179
|
97,398
|
|||||||||
Weighted average common and dilutive potential Common shares outstanding
|
14,723,142
|
13,736,618
|
13,420,114
|
|||||||||
Earnings per share assuming dilution
|
$
|
1.64
|
$
|
1.47
|
$
|
1.10
|
Fair Value Measurements at December 31, 2019 Using
|
||||||||||||||||||||
Carrying
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
Financial assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
88,556
|
$
|
88,556
|
$
|
-
|
$
|
-
|
$
|
88,556
|
||||||||||
Time deposits with other banks
|
598
|
-
|
599
|
-
|
599
|
|||||||||||||||
Federal funds sold
|
5,902
|
5,902
|
-
|
-
|
5,902
|
|||||||||||||||
Securities available for sale
|
390,754
|
-
|
390,754
|
-
|
390,754
|
|||||||||||||||
Loans, net
|
1,181,753
|
-
|
-
|
1,172,575
|
1,172,575
|
|||||||||||||||
Federal Home Loan Bank stock
|
4,450
|
n/a
|
n/a
|
n/a
|
n/a
|
|||||||||||||||
Interest receivable
|
4,699
|
4
|
1,110
|
3,585
|
4,699
|
|||||||||||||||
Financial liabilities
|
||||||||||||||||||||
Deposits
|
$
|
(1,495,753
|
)
|
$
|
(1,070,610
|
)
|
$
|
(424,886
|
)
|
$
|
-
|
$
|
(1,495,496
|
)
|
||||||
Securities sold under agreements
to repurchase
|
(20,428
|
)
|
-
|
(20,428
|
)
|
-
|
(20,428
|
)
|
||||||||||||
FHLB advances
|
(6,375
|
)
|
-
|
(6,406
|
)
|
-
|
(6,406
|
)
|
||||||||||||
Subordinated debt
|
(5,436
|
)
|
-
|
(5,527
|
)
|
-
|
(5,527
|
)
|
||||||||||||
Interest payable
|
(912
|
)
|
(15
|
)
|
(897
|
)
|
-
|
(912
|
)
|
Fair Value Measurements at December 31, 2018 Using
|
||||||||||||||||||||
Carrying
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
Financial assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
62,903
|
$
|
62,903
|
$
|
-
|
$
|
-
|
$
|
62,903
|
||||||||||
Time deposits with other banks
|
1,094
|
-
|
1,085
|
-
|
1,085
|
|||||||||||||||
Federal funds sold
|
17,872
|
17,872
|
-
|
-
|
17,872
|
|||||||||||||||
Securities available for sale
|
365,731
|
-
|
365,231
|
500
|
365,731
|
|||||||||||||||
Loans, net
|
1,135,563
|
-
|
-
|
1,121,517
|
1,121,517
|
|||||||||||||||
Federal Home Loan Bank stock
|
3,628
|
n/a
|
n/a
|
n/a
|
n/a
|
|||||||||||||||
Interest receivable
|
4,295
|
-
|
1,032
|
3,263
|
4,295
|
|||||||||||||||
Financial liabilities
|
||||||||||||||||||||
Deposits
|
$
|
(1,430,127
|
)
|
$
|
(1,039,430
|
)
|
$
|
(384,496
|
)
|
$
|
-
|
$
|
(1,423,926
|
)
|
||||||
Securities sold under agreements
to repurchase
|
(22,062
|
)
|
-
|
(22,062
|
)
|
-
|
(22,062
|
)
|
||||||||||||
FHLB advances
|
(8,819
|
)
|
-
|
(8,688
|
)
|
-
|
(8,688
|
)
|
||||||||||||
Other borrowed funds
|
(2,500
|
)
|
-
|
(2,478
|
)
|
-
|
(2,478
|
)
|
||||||||||||
Subordinated debt
|
(5,406
|
)
|
-
|
(5,509
|
)
|
-
|
(5,509
|
)
|
||||||||||||
Interest payable
|
(733
|
)
|
(22
|
)
|
(711
|
)
|
-
|
(733
|
)
|
Fair Value Measurements at
December 31, 2019 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
|
$
|
279,309
|
$
|
-
|
$
|
279,309
|
$
|
-
|
||||||||
U. S. agency CMO’s
|
62,644
|
-
|
62,644
|
-
|
||||||||||||
Total mortgage-backed securities of government sponsored agencies
|
341,953
|
-
|
341,953
|
-
|
||||||||||||
U. S. government sponsored agency securities
|
30,730
|
-
|
30,730
|
-
|
||||||||||||
Obligations of states and political subdivisions
|
16,017
|
-
|
16,017
|
-
|
||||||||||||
Other securities
|
2,054
|
-
|
2,054
|
-
|
||||||||||||
Total securities available for sale
|
$
|
390,754
|
$
|
-
|
$
|
390,754
|
$
|
-
|
Fair Value Measurements at
December 31, 2018 Using:
|
||||||||||||||||
Carrying Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
Securities available for sale
|
||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||
U. S. agency MBS - residential
|
$
|
255,242
|
$
|
-
|
$
|
255,242
|
$
|
-
|
||||||||
U. S. agency CMO’s
|
68,543
|
-
|
68,543
|
-
|
||||||||||||
Total mortgage-backed securities of government sponsored agencies
|
323,785
|
-
|
323,785
|
-
|
||||||||||||
U. S. government sponsored agency securities
|
24,170
|
-
|
24,170
|
-
|
||||||||||||
Obligations of states and political subdivisions
|
14,327
|
-
|
14,327
|
-
|
||||||||||||
Other securities
|
3,449
|
-
|
2,949
|
500
|
||||||||||||
Total securities available for sale
|
$
|
365,731
|
$
|
-
|
$
|
365,231
|
$
|
500
|
Securities Available-for-sale
|
||||
Year Ended
December 31, 2019
|
||||
Balance of recurring Level 3 assets at beginning of period
|
$
|
500
|
||
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
|
(500
|
)
|
||
Transfers in and/or out of Level 3
|
-
|
|||
Balance of recurring Level 3 assets at period-end
|
$
|
-
|
Fair Value Measurements at December 31, 2019 Using
|
||||||||||||||||
Dec 31, 2019
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
Assets:
|
||||||||||||||||
Impaired loans:
|
||||||||||||||||
Multifamily real estate
|
$
|
1,900
|
$
|
-
|
$
|
-
|
$
|
1,900
|
||||||||
Commercial real estate
|
||||||||||||||||
Owner occupied
|
509
|
-
|
-
|
509
|
||||||||||||
Non-owner occupied
|
2,266
|
-
|
-
|
2,266
|
||||||||||||
Commercial and industrial
|
288
|
-
|
-
|
288
|
||||||||||||
Construction and land
|
380
|
-
|
-
|
380
|
||||||||||||
Total impaired loans
|
$
|
5,343
|
$
|
-
|
$
|
-
|
$
|
5,343
|
||||||||
Other real estate owned:
|
||||||||||||||||
Residential real estate
|
$
|
249
|
$
|
-
|
$
|
-
|
$
|
249
|
||||||||
Multifamily real estate
|
9,588
|
-
|
-
|
9,588
|
||||||||||||
Commercial real estate
|
||||||||||||||||
Owner occupied
|
288
|
-
|
-
|
288
|
||||||||||||
Construction and land
|
750
|
-
|
-
|
750
|
||||||||||||
Total OREO
|
$
|
10,875
|
$
|
-
|
$
|
-
|
$
|
10,875
|
December 31,
2019
|
Valuation Techniques
|
Unobservable Inputs
|
Range (Weighted Avg)
|
||||||
Impaired loans:
|
|||||||||
Multifamily real estate
|
$
|
1,900
|
sales comparison
|
adjustment for estimated realizable value
|
58.9%-58.9% (58.9%)
|
||||
Commercial real estate
|
|||||||||
Owner occupied
|
509
|
sales comparison
|
adjustment for estimated realizable value
|
76.1%-76.1% (76.1%)
|
|||||
Non-owner occupied
|
2,266
|
income approach
|
adjustment for differences in net operating income expectations
|
36.6%-67.4% (60.6%)
|
|||||
Commercial and industrial
|
288
|
sales comparison
|
adjustment for estimated realizable value
|
25.0%-87.0% (43.6%)
|
|||||
Construction and land
|
380
|
sales comparison
|
adjustment for estimated realizable value
|
56.5%-56.5% (56.5%)
|
|||||
Total impaired loans
|
$
|
5,343
|
|||||||
Other real estate owned:
|
|||||||||
Residential real estate
|
$
|
249
|
sales comparison
|
adjustment for estimated realizable value
|
0.2%-59.8% (17.5%)
|
||||
Multifamily real estate
|
9,588
|
income approach
|
adjustment for differences in net operating income expectations
|
25.6%-25.6% (25.6%)
|
|||||
Commercial real estate
|
|||||||||
Owner occupied
|
288
|
sales comparison
|
adjustment for estimated realizable value
|
14.6%-70.4% (34.0%)
|
|||||
Construction and land
|
750
|
sales comparison
|
adjustment for estimated realizable value
|
50.3%-69.9% (66.0%)
|
|||||
Total OREO
|
$
|
10,875
|
Fair Value Measurements at December 31, 2018 Using
|
||||||||||||||||
Dec 31, 2018
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
Assets:
|
||||||||||||||||
Impaired loans:
|
||||||||||||||||
Multifamily real estate
|
$
|
2,514
|
$
|
-
|
$
|
-
|
$
|
2,514
|
||||||||
Commercial real estate
|
||||||||||||||||
Owner occupied
|
1,786
|
-
|
-
|
1,786
|
||||||||||||
Non-owner occupied
|
2,514
|
-
|
-
|
2,514
|
||||||||||||
Commercial and industrial
|
144
|
-
|
-
|
144
|
||||||||||||
Construction and land
|
423
|
-
|
-
|
423
|
||||||||||||
Total impaired loans
|
$
|
7,381
|
$
|
-
|
$
|
-
|
$
|
7,381
|
||||||||
Other real estate owned:
|
||||||||||||||||
Residential real estate
|
$
|
984
|
$
|
-
|
$
|
-
|
$
|
984
|
||||||||
Multifamily real estate
|
10,307
|
-
|
-
|
10,307
|
||||||||||||
Commercial real estate
|
||||||||||||||||
Owner occupied
|
125
|
-
|
-
|
125
|
||||||||||||
Non-owner occupied
|
200
|
-
|
-
|
200
|
||||||||||||
Construction and land
|
150
|
-
|
-
|
150
|
||||||||||||
Total OREO
|
$
|
11,766
|
$
|
-
|
$
|
-
|
$
|
11,766
|
December 31, 2018
|
Valuation Techniques
|
Unobservable Inputs
|
Range (Weighted Avg)
|
||||||
Impaired loans:
|
|||||||||
Multifamily real estate
|
$
|
2,514
|
sales comparison
|
adjustment for estimated realizable value
|
45.3%-45.3% (45.3%)
|
||||
Commercial real estate
|
|||||||||
Owner occupied
|
1,786
|
sales comparison
|
adjustment for estimated realizable value
|
31.5%-50.6% (35.5%)
|
|||||
Non-owner occupied
|
2,514
|
income approach
|
adjustment for differences in net operating income expectations
|
16.1%-67.2% (54.1%)
|
|||||
Commercial and industrial
|
144
|
sales comparison
|
adjustment for estimated realizable value
|
0.0%-0.0% (0.0%)
|
|||||
Construction and land
|
423
|
sales comparison
|
adjustment for estimated realizable value
|
53.2%-83.6% (54.5%)
|
|||||
Total impaired loans
|
$
|
7,381
|
|||||||
Other real estate owned:
|
|||||||||
Residential real estate
|
$
|
984
|
sales comparison
|
adjustment for estimated realizable value
|
19.2%-59.8% (21.9%)
|
||||
Multifamily real estate
|
10,307
|
income approach
|
adjustment for differences in net operating income expectations
|
20.0%-20.0% (20.0%)
|
|||||
Commercial real estate
|
|||||||||
Owner occupied
|
125
|
sales comparison
|
adjustment for estimated realizable value
|
42.4%-42.4% (42.4%)
|
|||||
Non-owner occupied
|
200
|
sales comparison
|
adjustment for estimated realizable value
|
57.9%-57.9% (57.9%)
|
|||||
Construction and land
|
150
|
sales comparison
|
adjustment for estimated realizable value
|
50.3%-50.3% (50.3%)
|
|||||
Total OREO
|
$
|
11,766
|
2019
|
2018
|
|||||||
Standby letters of credit
|
$
|
2,419
|
$
|
4,424
|
||||
Commitments to extend credit
|
||||||||
Fixed
|
$
|
25,591
|
$
|
21,993
|
||||
Variable
|
120,185
|
118,328
|
For Capital
|
To Be Well Capitalized
Under Prompt Corrective
|
|||||||||||||||||||||||
Actual
|
Adequacy Purposes
Including 2.5% Capital Conservation Buffer
|
Action Provisions
Including 2.5% Capital Conservation Buffer
|
||||||||||||||||||||||
2019
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
Total Capital (to risk-weighted assets):
|
||||||||||||||||||||||||
Consolidated (1)
|
$
|
206,275
|
16.5
|
%
|
$
|
131,615
|
10.5
|
%
|
$
|
156,684
|
12.5
|
%
|
||||||||||||
Premier Bank, Inc.
|
144,793
|
15.8
|
96,248
|
10.5
|
114,581
|
12.5
|
||||||||||||||||||
Citizens Deposit Bank
|
47,466
|
14.1
|
35,387
|
10.5
|
42,128
|
12.5
|
||||||||||||||||||
Tier I Capital (to risk-weighted assets):
|
||||||||||||||||||||||||
Consolidated (1)
|
$
|
192,733
|
15.4
|
%
|
$
|
106,545
|
8.5
|
%
|
$
|
131,615
|
10.5
|
%
|
||||||||||||
Premier Bank, Inc.
|
133,609
|
14.6
|
77,915
|
8.5
|
96,248
|
10.5
|
||||||||||||||||||
Citizens Deposit Bank
|
45,108
|
13.4
|
28,647
|
8.5
|
35,387
|
10.5
|
||||||||||||||||||
Common Equity Tier I Capital
(to risk-weighted assets):
|
||||||||||||||||||||||||
Consolidated (1)
|
$
|
186,733
|
14.9
|
%
|
$
|
87,743
|
7.0
|
%
|
$
|
112,812
|
9.0
|
%
|
||||||||||||
Premier Bank, Inc.
|
133,609
|
14.6
|
64,166
|
7.0
|
82,499
|
9.0
|
||||||||||||||||||
Citizens Deposit Bank
|
45,108
|
13.4
|
23,592
|
7.0
|
30,332
|
9.0
|
||||||||||||||||||
Tier I Capital (to average assets):
|
||||||||||||||||||||||||
Consolidated (1)
|
$
|
192,733
|
11.3
|
%
|
$
|
68,422
|
4
|
%
|
$
|
85,528
|
5
|
%
|
||||||||||||
Premier Bank, Inc.
|
133,609
|
11.3
|
47,240
|
4
|
59,051
|
5
|
||||||||||||||||||
Citizens Deposit Bank
|
45,108
|
8.5
|
21,128
|
4
|
26,410
|
5
|
||||||||||||||||||
(1) The consolidated company is not subject to Prompt Corrective Action Provisions.
|
To Be Well Capitalized
|
||||||||||||||||||||||||
For Capital
|
Under Prompt Corrective
|
|||||||||||||||||||||||
Actual
|
Adequacy Purposes (1)
|
Action Provisions
|
||||||||||||||||||||||
2018
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
Total Capital (to risk-weighted assets):
|
||||||||||||||||||||||||
Consolidated (2)
|
$
|
190,770
|
15.9
|
%
|
$
|
96,110
|
8
|
%
|
$
|
120,138
|
10
|
%
|
||||||||||||
Premier Bank, Inc.
|
141,302
|
15.4
|
73,320
|
8
|
91,650
|
10
|
||||||||||||||||||
Citizens Deposit Bank
|
42,284
|
14.8
|
22,852
|
8
|
28,565
|
10
|
||||||||||||||||||
Tier I Capital (to risk-weighted assets):
|
||||||||||||||||||||||||
Consolidated (2)
|
$
|
177,032
|
14.7
|
%
|
$
|
72,083
|
6
|
%
|
$
|
96,110
|
8
|
%
|
||||||||||||
Premier Bank, Inc.
|
130,428
|
14.2
|
54,990
|
6
|
73,320
|
8
|
||||||||||||||||||
Citizens Deposit Bank
|
39,420
|
13.8
|
17,139
|
6
|
22,852
|
8
|
||||||||||||||||||
Common Equity Tier I Capital
(to risk-weighted assets):
|
||||||||||||||||||||||||
Consolidated (2)
|
$
|
171,032
|
14.2
|
%
|
$
|
54,062
|
4.5
|
%
|
$
|
78,090
|
6.5
|
%
|
||||||||||||
Premier Bank, Inc.
|
130,428
|
14.2
|
41,242
|
4.5
|
59,572
|
6.5
|
||||||||||||||||||
Citizens Deposit Bank
|
39,420
|
13.8
|
12,854
|
4.5
|
18,567
|
6.5
|
||||||||||||||||||
Tier I Capital (to average assets):
|
||||||||||||||||||||||||
Consolidated (2)
|
$
|
177,032
|
10.7
|
%
|
$
|
66,040
|
4
|
%
|
$
|
82,550
|
5
|
%
|
||||||||||||
Premier Bank, Inc.
|
130,428
|
10.8
|
48,368
|
4
|
60,460
|
5
|
||||||||||||||||||
Citizens Deposit Bank
|
39,420
|
9.0
|
17,571
|
4
|
21,964
|
5
|
||||||||||||||||||
(1) The ratios for capital adequacy purposes do not include the additional capital
conservation buffer.
(2) The consolidated company is not subject to Prompt Corrective Action Provisions.
|
Condensed Balance Sheets
|
||||||||
December 31
|
||||||||
2019
|
2018
|
|||||||
ASSETS
|
||||||||
Cash
|
$
|
13,184
|
$
|
8,759
|
||||
Investment in subsidiaries
|
232,509
|
215,888
|
||||||
Premises and equipment
|
622
|
271
|
||||||
Other assets
|
754
|
730
|
||||||
Total assets
|
$
|
247,069
|
$
|
225,648
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Other liabilities
|
$
|
1,392
|
$
|
1,013
|
||||
Other borrowed funds
|
-
|
2,500
|
||||||
Subordinated debt
|
5,436
|
5,406
|
||||||
Total liabilities
|
6,828
|
8,919
|
||||||
Stockholders’ equity
|
||||||||
Common stock
|
133,795
|
133,248
|
||||||
Retained earnings
|
102,743
|
87,333
|
||||||
Accumulated other comprehensive income (loss)
|
3,703
|
(3,852
|
)
|
|||||
Total stockholders’ equity
|
240,241
|
216,729
|
||||||
Total liabilities and stockholders’ equity
|
$
|
247,069
|
$
|
225,648
|
Condensed Statement of Operations
|
||||||||||||
Years Ended December 31
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
Income
|
||||||||||||
Dividends from subsidiaries
|
$
|
19,050
|
$
|
18,740
|
$
|
12,565
|
||||||
Interest and dividend income
|
7
|
7
|
12
|
|||||||||
Other income
|
2,277
|
2,163
|
2,126
|
|||||||||
Total income
|
21,334
|
20,910
|
14,703
|
|||||||||
Expenses
|
||||||||||||
Interest expense on other borrowings
|
30
|
156
|
285
|
|||||||||
Interest expense on subordinated debt
|
369
|
352
|
295
|
|||||||||
Salaries and employee benefits
|
3,582
|
3,252
|
3,399
|
|||||||||
Occupancy and equipment expenses
|
438
|
394
|
299
|
|||||||||
Professional fees
|
443
|
689
|
303
|
|||||||||
Other expenses
|
591
|
659
|
387
|
|||||||||
Total expenses
|
5,453
|
5,502
|
4,968
|
|||||||||
Income before income taxes and equity in undistributed income of subsidiaries
|
15,881
|
15,408
|
9,735
|
|||||||||
Income tax (benefit)
|
(699
|
)
|
(723
|
)
|
(1,012
|
)
|
||||||
Income before equity in undistributed income of subsidiaries
|
16,580
|
16,131
|
10,747
|
|||||||||
Equity in undistributed income of subsidiaries
|
7,616
|
4,037
|
4,072
|
|||||||||
Net income
|
$
|
24,196
|
$
|
20,168
|
$
|
14,819
|
Condensed Statement of Cash Flows
|
||||||||||||
Years Ended December 31
|
||||||||||||
2019
|
2018
|
2017
|
||||||||||
Cash flows from operating activities
|
||||||||||||
Net income
|
$
|
24,196
|
$
|
20,168
|
$
|
14,819
|
||||||
Adjustments to reconcile net income to net cash from operating activities
|
||||||||||||
Depreciation
|
78
|
93
|
89
|
|||||||||
Amortization
|
30
|
30
|
33
|
|||||||||
Stock compensation expense
|
301
|
252
|
217
|
|||||||||
Equity in undistributed earnings of subsidiaries
|
(7,616
|
)
|
(4,037
|
)
|
(4,072
|
)
|
||||||
Change in other assets
|
(24
|
)
|
(181
|
)
|
(123
|
)
|
||||||
Change in other liabilities
|
13
|
(43
|
)
|
243
|
||||||||
Net cash from operating activities
|
16,978
|
16,282
|
11,206
|
|||||||||
Cash flows from investing activities
|
||||||||||||
Investments in nonbank subsidiaries
|
-
|
-
|
(250
|
)
|
||||||||
Repayment of investments in nonbank subsidiaries
|
50
|
-
|
-
|
|||||||||
Investments in subsidiaries
|
(1,500
|
)
|
-
|
-
|
||||||||
Acquisition of subsidiary, net of cash received
|
-
|
(5,212
|
)
|
-
|
||||||||
Purchases of fixed assets, net of proceeds from asset sales
|
(63
|
)
|
(80
|
)
|
(80
|
)
|
||||||
Net cash from investing activities
|
(1,513
|
)
|
(5,292
|
)
|
(330
|
)
|
||||||
Cash flows from financing activities
|
||||||||||||
Cash dividends paid to shareholders
|
(8,786
|
)
|
(7,805
|
)
|
(6,398
|
)
|
||||||
Cash in lieu of fractional shares
|
-
|
(13
|
)
|
-
|
||||||||
Proceeds from stock option exercises
|
246
|
193
|
317
|
|||||||||
Payments on other borrowed funds
|
(2,500
|
)
|
(2,500
|
)
|
(3,600
|
)
|
||||||
Net cash from financing activities
|
(11,040
|
)
|
(10,125
|
)
|
(9,681
|
)
|
||||||
Net change in cash and cash equivalents
|
4,425
|
865
|
1,195
|
|||||||||
Cash and cash equivalents at beginning of year
|
8,759
|
7,894
|
6,699
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
13,184
|
$
|
8,759
|
$
|
7,894
|
Interest
Income
|
Net Interest
Income
|
Net
Income
|
Earnings Per Share
|
|||||||||||||||||
Basic
|
Diluted
|
|||||||||||||||||||
2019
|
||||||||||||||||||||
First Quarter
|
$
|
19,064
|
$
|
16,835
|
$
|
6,176
|
$
|
0.42
|
$
|
0.42
|
||||||||||
Second Quarter
|
19,106
|
16,655
|
5,859
|
0.40
|
0.40
|
|||||||||||||||
Third Quarter
|
19,308
|
16,778
|
6,267
|
0.43
|
0.43
|
|||||||||||||||
Fourth Quarter
|
19,100
|
16,633
|
5,894
|
0.40
|
0.40
|
|||||||||||||||
2018
|
||||||||||||||||||||
First Quarter
|
$
|
15,799
|
$
|
14,635
|
$
|
5,133
|
$
|
0.38
|
$
|
0.38
|
||||||||||
Second Quarter
|
15,753
|
14,419
|
4,375
|
0.33
|
0.32
|
|||||||||||||||
Third Quarter
|
16,001
|
14,509
|
5,021
|
0.38
|
0.37
|
|||||||||||||||
Fourth Quarter
|
18,268
|
16,191
|
5,639
|
0.39
|
0.39
|
A.
|
Disclosure Controls & Procedures
|
Exhibit
Number
|
Description of Document
|
|
***10.1 | ||
***10.2 | ||
***10.3 | ||
Exhibit
Number
|
Description of Document
|
|
***10.10
|
||
Exhibit
Number
|
Description of Document
|
|
*** Denotes executive compensation plans and arrangements.
|
PREMIER FINANCIAL BANCORP, INC.
|
|
By: /s/ Robert W. Walker, President
|
|
Robert W. Walker, President
|
|
Date: March 12, 2020
|
|
/s/ Robert W. Walker
|
Principal Executive and Director
|
March 12, 2020
|
Robert W. Walker
|
||
/s/ Brien M. Chase
|
Principal Financial and Accounting
|
March 12, 2020
|
Brien M. Chase
|
Officer
|
|
/s/ Toney K. Adkins
|
Director
|
March 04, 2020
|
Toney K. Adkins
|
||
/s/ Harry M. Hatfield
|
Director
|
March 03, 2020
|
Harry M. Hatfield
|
||
/s/ Lloyd G. Jackson II
|
Director
|
March 03, 2020
|
Lloyd G. Jackson II
|
||
/s/ Philip E. Cline
|
Director
|
March 04, 2020
|
Philip E. Cline
|
||
/s/ Keith F. Molihan
|
Director
|
March 06, 2020
|
Keith F. Molihan
|
||
/s/ Marshall T. Reynolds
|
Chairman of the Board
|
March 03, 2020
|
Marshall T. Reynolds
|
||
/s/ Neal Scaggs
|
Director
|
March 03, 2020
|
Neal Scaggs
|
||
/s/ Thomas W. Wright
|
Director
|
March 03, 2020
|
Thomas W. Wright
|
||
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.
|
|
• |
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, and
|
|
• |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|