|
|
|
|
|
|
|
☒
|
Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
☐
|
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
|
Red River Bancshares, Inc.
|
|
|
(Exact name of registrant as specified in its charter)
|
|
Louisiana
|
|
72-1412058
|
(State or Other Jurisdiction of Incorporation or Organization)
|
|
(I.R.S. Employer Identification Number)
|
1412 Centre Court Drive, Suite 402,
|
Alexandria,
|
Louisiana
|
|
71301
|
(Address of Principal Executive Offices)
|
|
(Zip Code)
|
|
|
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, no par value
|
RRBI
|
The NASDAQ Stock Market, LLC
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☒
|
|
|
Emerging growth company
|
☒
|
|
|
|
Page
|
|
|
|
PART I
|
Financial Information
|
|
Item 1.
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
|
|
PART II
|
Other Information
|
|
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
Item 5.
|
||
Item 6.
|
||
|
ABBREVIATION OR ACRONYM
|
|
DEFINITION
|
2018 2-for-1 stock split
|
|
A stock split that was accomplished by a stock dividend with a record date of October 1, 2018, whereby each holder of the Company's common stock received one additional share of common stock for each share owned as of such date.
|
AFS
|
|
Available-for-sale
|
AOCI
|
|
Accumulated other comprehensive income or loss
|
ASC
|
|
Accounting Standards Codification
|
ASU
|
|
Accounting Standards Update
|
Basel III
|
|
Basel Committee's 2010 Regulatory Capital Framework (Third Accord)
|
BOLI
|
|
Bank-owned life insurance
|
CECL
|
|
Current Expected Credit Losses, related to ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments
|
Director Compensation Program
|
|
Compensation program which allows directors of the Company and the Bank an opportunity to select how to receive their annual director fees.
|
Economic Growth Act
|
|
Economic Growth, Regulatory Relief, and Consumer Protection Act
|
EPS
|
|
Earnings per share
|
Exchange Act
|
|
Securities Exchange Act of 1934, as amended
|
FDIA
|
|
Federal Deposit Insurance Act
|
FDIC
|
|
Federal Deposit Insurance Corporation
|
FBT CT I
|
|
FBT Capital Trust I, a Delaware statutory trust
|
FHLB
|
|
Federal Home Loan Bank
|
FTE
|
|
Fully taxable equivalent basis
|
GAAP
|
|
Generally Accepted Accounting Principles in the United States of America
|
HFI
|
|
Held for investment
|
HFS
|
|
Held for sale
|
HTM
|
|
Held-to-maturity
|
IPO
|
|
Initial public offering
|
LPO
|
|
Loan production office
|
MSA
|
|
Metropolitan statistical area
|
NOW
|
|
Negotiable order of withdrawal
|
OTTI
|
|
Other-than-temporary impairment
|
SBIC
|
|
Small Business Investment Company
|
Securities Act
|
|
Securities Act of 1933, as amended
|
SEC
|
|
Securities and Exchange Commission
|
TDR(s)
|
|
Troubled debt restructuring(s)
|
Trust II
|
|
Red River Statutory Trust II, a Connecticut statutory trust
|
Trust III
|
|
Red River Statutory Trust III, a Delaware statutory trust
|
•
|
business and economic conditions generally and in the financial services industry, nationally and within our local market areas;
|
•
|
government intervention in the U.S. financial system;
|
•
|
changes in management personnel;
|
•
|
increased competition in the financial services industry, particularly from regional and national institutions;
|
•
|
volatility and direction of market interest rates;
|
•
|
our ability to maintain important deposit customer relationships, our reputation, or to otherwise avoid liquidity risks;
|
•
|
factors that can impact the performance of our loan portfolio, including real estate values and liquidity in our primary market areas, the financial health of our commercial borrowers, and the success of construction projects that we finance, including any loans acquired in acquisition transactions;
|
•
|
changes in the value of collateral securing our loans;
|
•
|
risks associated with system failures or failures to protect against cybersecurity threats, such as breaches of our network security;
|
•
|
deterioration of our asset quality;
|
•
|
the adequacy of our reserves, including our allowance for loan losses;
|
•
|
operational risks associated with our business;
|
•
|
natural disasters and adverse weather, acts of terrorism, an outbreak of hostilities or other international or domestic calamities, and other matters beyond our control;
|
•
|
our ability to prudently manage our growth and execute our strategy;
|
•
|
compliance with the extensive regulatory framework that applies to us;
|
•
|
changes in the laws, rules, regulations, interpretations, or policies relating to financial institution, accounting, tax, trade, monetary, and fiscal matters;
|
•
|
the impact of recent and future legislative and regulatory changes, including the Tax Cuts and Jobs Act of 2017, the Economic Growth Act, and other changes in banking, securities, accounting, and tax laws and regulations, and their application by our regulators; and
|
•
|
other risks and uncertainties listed from time to time in our reports and documents filed with the SEC.
|
(in thousands, except share amounts)
|
(Unaudited)
June 30, 2019 |
|
(Audited)
December 31, 2018 |
||||
ASSETS
|
|
|
|
||||
Cash and due from banks
|
$
|
29,854
|
|
|
$
|
34,070
|
|
Interest-bearing deposits in other banks
|
71,761
|
|
|
117,836
|
|
||
Total cash and cash equivalents
|
101,615
|
|
|
151,906
|
|
||
Securities available-for-sale
|
318,082
|
|
|
307,877
|
|
||
Equity securities
|
3,924
|
|
|
3,821
|
|
||
Nonmarketable equity securities
|
1,342
|
|
|
1,299
|
|
||
Loans held for sale
|
6,029
|
|
|
2,904
|
|
||
Loans held for investment
|
1,393,154
|
|
|
1,328,438
|
|
||
Allowance for loan losses
|
(13,591
|
)
|
|
(12,524
|
)
|
||
Premises and equipment, net
|
40,032
|
|
|
39,690
|
|
||
Accrued interest receivable
|
5,570
|
|
|
5,013
|
|
||
Bank-owned life insurance
|
21,570
|
|
|
21,301
|
|
||
Intangible assets
|
1,546
|
|
|
1,546
|
|
||
Right-of-use assets
|
4,748
|
|
|
—
|
|
||
Other assets
|
8,897
|
|
|
9,317
|
|
||
Total Assets
|
$
|
1,892,918
|
|
|
$
|
1,860,588
|
|
LIABILITIES
|
|
|
|
||||
Noninterest-bearing deposits
|
$
|
576,934
|
|
|
$
|
547,880
|
|
Interest-bearing deposits
|
1,057,656
|
|
|
1,097,703
|
|
||
Total Deposits
|
1,634,590
|
|
|
1,645,583
|
|
||
Junior subordinated debentures
|
5,155
|
|
|
11,341
|
|
||
Accrued interest payable
|
1,998
|
|
|
1,757
|
|
||
Lease liabilities
|
4,773
|
|
|
—
|
|
||
Accrued expenses and other liabilities
|
8,491
|
|
|
8,204
|
|
||
Total Liabilities
|
1,655,007
|
|
|
1,666,885
|
|
||
COMMITMENTS AND CONTINGENCIES
|
—
|
|
|
—
|
|
||
STOCKHOLDERS' EQUITY
|
|
|
|
||||
Preferred stock, no par value:
Authorized - 1,000,000 shares; None Issued and Outstanding |
—
|
|
|
—
|
|
||
Common stock, no par value:
Authorized - 30,000,000 shares; Issued and Outstanding - 7,300,246 and 6,627,358 shares |
68,082
|
|
|
41,094
|
|
||
Retained earnings
|
170,122
|
|
|
160,115
|
|
||
Accumulated other comprehensive income (loss)
|
(293
|
)
|
|
(7,506
|
)
|
||
Total Stockholders' Equity
|
237,911
|
|
|
193,703
|
|
||
Total Liabilities and Stockholders' Equity
|
$
|
1,892,918
|
|
|
$
|
1,860,588
|
|
(in thousands, except per share data)
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
INTEREST AND DIVIDEND INCOME
|
|
|
|
|
|
|
|
||||||||
Interest and fees on loans
|
$
|
15,945
|
|
|
$
|
14,435
|
|
|
$
|
31,448
|
|
|
$
|
28,022
|
|
Interest on securities
|
1,784
|
|
|
1,744
|
|
|
3,547
|
|
|
3,565
|
|
||||
Interest on federal funds sold
|
212
|
|
|
64
|
|
|
425
|
|
|
114
|
|
||||
Interest on deposits in other banks
|
306
|
|
|
119
|
|
|
722
|
|
|
226
|
|
||||
Dividends on stock
|
9
|
|
|
7
|
|
|
19
|
|
|
13
|
|
||||
Total Interest and Dividend Income
|
18,256
|
|
|
16,369
|
|
|
36,161
|
|
|
31,940
|
|
||||
INTEREST EXPENSE
|
|
|
|
|
|
|
|
||||||||
Interest on deposits
|
2,449
|
|
|
1,665
|
|
|
4,746
|
|
|
3,200
|
|
||||
Interest on other borrowed funds
|
—
|
|
|
2
|
|
|
—
|
|
|
4
|
|
||||
Interest on junior subordinated debentures
|
156
|
|
|
136
|
|
|
312
|
|
|
260
|
|
||||
Total Interest Expense
|
2,605
|
|
|
1,803
|
|
|
5,058
|
|
|
3,464
|
|
||||
NET INTEREST INCOME
|
15,651
|
|
|
14,566
|
|
|
31,103
|
|
|
28,476
|
|
||||
Provision for loan losses
|
529
|
|
|
526
|
|
|
1,055
|
|
|
937
|
|
||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
15,122
|
|
|
14,040
|
|
|
30,048
|
|
|
27,539
|
|
||||
NONINTEREST INCOME
|
|
|
|
|
|
|
|
||||||||
Service charges on deposit accounts
|
1,083
|
|
|
1,124
|
|
|
2,109
|
|
|
2,324
|
|
||||
Debit card income, net
|
785
|
|
|
764
|
|
|
1,481
|
|
|
1,468
|
|
||||
Mortgage loan income
|
657
|
|
|
706
|
|
|
1,171
|
|
|
1,052
|
|
||||
Brokerage income
|
626
|
|
|
590
|
|
|
991
|
|
|
925
|
|
||||
Loan and deposit income
|
382
|
|
|
329
|
|
|
727
|
|
|
597
|
|
||||
Bank-owned life insurance income
|
137
|
|
|
139
|
|
|
270
|
|
|
276
|
|
||||
Gain (Loss) on equity securities
|
56
|
|
|
(93
|
)
|
|
104
|
|
|
(93
|
)
|
||||
Gain on sale of investments
|
—
|
|
|
—
|
|
|
—
|
|
|
41
|
|
||||
Other income
|
373
|
|
|
106
|
|
|
542
|
|
|
233
|
|
||||
Total Noninterest Income
|
4,099
|
|
|
3,665
|
|
|
7,395
|
|
|
6,823
|
|
||||
OPERATING EXPENSES
|
|
|
|
|
|
|
|
||||||||
Personnel expenses
|
7,005
|
|
|
6,489
|
|
|
13,645
|
|
|
12,631
|
|
||||
Occupancy and equipment expenses
|
1,334
|
|
|
1,081
|
|
|
2,509
|
|
|
2,161
|
|
||||
Technology expenses
|
558
|
|
|
536
|
|
|
1,101
|
|
|
1,042
|
|
||||
Advertising
|
396
|
|
|
211
|
|
|
605
|
|
|
386
|
|
||||
Other business development expenses
|
277
|
|
|
241
|
|
|
560
|
|
|
547
|
|
||||
Data processing expense
|
483
|
|
|
427
|
|
|
942
|
|
|
820
|
|
||||
Other taxes
|
455
|
|
|
349
|
|
|
808
|
|
|
691
|
|
||||
Loan and deposit expenses
|
392
|
|
|
222
|
|
|
615
|
|
|
402
|
|
||||
Legal and professional expenses
|
383
|
|
|
344
|
|
|
702
|
|
|
668
|
|
||||
Other operating expenses
|
1,121
|
|
|
1,047
|
|
|
2,075
|
|
|
1,907
|
|
||||
Total Operating Expenses
|
12,404
|
|
|
10,947
|
|
|
23,562
|
|
|
21,255
|
|
||||
INCOME BEFORE INCOME TAX EXPENSE
|
6,817
|
|
|
6,758
|
|
|
13,881
|
|
|
13,107
|
|
||||
Income tax expense
|
1,279
|
|
|
1,226
|
|
|
2,647
|
|
|
2,344
|
|
||||
NET INCOME
|
$
|
5,538
|
|
|
$
|
5,532
|
|
|
$
|
11,234
|
|
|
$
|
10,763
|
|
EARNINGS PER SHARE(1)
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.79
|
|
|
$
|
0.82
|
|
|
$
|
1.64
|
|
|
$
|
1.60
|
|
Diluted
|
$
|
0.78
|
|
|
$
|
0.82
|
|
|
$
|
1.63
|
|
|
$
|
1.59
|
|
(1)
|
2018 amounts adjusted to give effect to the 2018 2-for-1 stock split
|
(in thousands)
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income
|
$
|
5,538
|
|
|
$
|
5,532
|
|
|
$
|
11,234
|
|
|
$
|
10,763
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Unrealized net gain (loss) on securities arising during period
|
4,213
|
|
|
(839
|
)
|
|
9,131
|
|
|
(5,084
|
)
|
||||
Tax effect
|
(885
|
)
|
|
185
|
|
|
(1,918
|
)
|
|
1,092
|
|
||||
Less: Gains included in net income
|
—
|
|
|
—
|
|
|
—
|
|
|
(41
|
)
|
||||
Tax effect
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
||||
Total other comprehensive income (loss)
|
3,328
|
|
|
(654
|
)
|
|
7,213
|
|
|
(4,024
|
)
|
||||
Comprehensive income
|
$
|
8,866
|
|
|
$
|
4,878
|
|
|
$
|
18,447
|
|
|
$
|
6,739
|
|
(in thousands, except share amounts)
|
Common
Stock
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
Stockholders'
Equity
|
||||||||
Balance as of December 31, 2017
|
$
|
45,539
|
|
|
$
|
137,949
|
|
|
$
|
(5,385
|
)
|
|
$
|
178,103
|
|
Net income
|
—
|
|
|
5,231
|
|
|
—
|
|
|
5,231
|
|
||||
Stock incentive plan expense
|
—
|
|
|
47
|
|
|
—
|
|
|
47
|
|
||||
Issuance of 2,452 shares of common stock as board compensation(1)
|
92
|
|
|
—
|
|
|
—
|
|
|
92
|
|
||||
Cash dividend - $0.15 per share(1)
|
—
|
|
|
(1,009
|
)
|
|
—
|
|
|
(1,009
|
)
|
||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
(3,370
|
)
|
|
(3,370
|
)
|
||||
Balance as of March 31, 2018
|
$
|
45,631
|
|
|
$
|
142,218
|
|
|
$
|
(8,755
|
)
|
|
$
|
179,094
|
|
Net income
|
—
|
|
|
5,532
|
|
|
—
|
|
|
5,532
|
|
||||
Stock incentive plan expense
|
—
|
|
|
46
|
|
|
—
|
|
|
46
|
|
||||
Issuance of 2,000 shares of common stock through exercise of stock options(1)
|
29
|
|
|
—
|
|
|
—
|
|
|
29
|
|
||||
Reclassification for adoption of accounting standard
|
—
|
|
|
(74
|
)
|
|
74
|
|
|
—
|
|
||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
(654
|
)
|
|
(654
|
)
|
||||
Balance as of June 30, 2018
|
$
|
45,660
|
|
|
$
|
147,722
|
|
|
$
|
(9,335
|
)
|
|
$
|
184,047
|
|
|
|
|
|
|
|
|
|
||||||||
Balance as of December 31, 2018
|
$
|
41,094
|
|
|
$
|
160,115
|
|
|
$
|
(7,506
|
)
|
|
$
|
193,703
|
|
Net income
|
—
|
|
|
5,696
|
|
|
—
|
|
|
5,696
|
|
||||
Stock incentive plan expense
|
—
|
|
|
49
|
|
|
—
|
|
|
49
|
|
||||
Issuance of 7,200 shares of common stock through exercise of stock options
|
80
|
|
|
—
|
|
|
—
|
|
|
80
|
|
||||
Issuance of 2,368 shares of common stock as board compensation
|
97
|
|
|
—
|
|
|
—
|
|
|
97
|
|
||||
Cash dividend - $0.20 per share
|
—
|
|
|
(1,326
|
)
|
|
—
|
|
|
(1,326
|
)
|
||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
3,885
|
|
|
3,885
|
|
||||
Balance as of March 31, 2019
|
$
|
41,271
|
|
|
$
|
164,534
|
|
|
$
|
(3,621
|
)
|
|
$
|
202,184
|
|
Net income
|
—
|
|
|
5,538
|
|
|
—
|
|
|
5,538
|
|
||||
Stock incentive plan expense
|
—
|
|
|
50
|
|
|
—
|
|
|
50
|
|
||||
Issuance of 663,320 shares of
common stock through IPO |
26,812
|
|
|
—
|
|
|
—
|
|
|
26,812
|
|
||||
Board compensation adjustment
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
3,328
|
|
|
3,328
|
|
||||
Balance as of June 30, 2019
|
$
|
68,082
|
|
|
$
|
170,122
|
|
|
$
|
(293
|
)
|
|
$
|
237,911
|
|
(1)
|
Adjusted to give effect to the 2018 2-for-1 stock split
|
(in thousands)
|
For the Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
||||
Net income
|
$
|
11,234
|
|
|
$
|
10,763
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation
|
847
|
|
|
822
|
|
||
Amortization
|
151
|
|
|
214
|
|
||
Share-based compensation earned
|
99
|
|
|
93
|
|
||
Share-based board compensation earned
|
96
|
|
|
92
|
|
||
(Gain) Loss on other assets owned
|
11
|
|
|
(12
|
)
|
||
Net (accretion) amortization on AFS securities
|
566
|
|
|
687
|
|
||
Net (accretion) amortization on HTM securities
|
—
|
|
|
7
|
|
||
Gains on sales of AFS securities
|
—
|
|
|
(41
|
)
|
||
Provision for loan losses
|
1,055
|
|
|
937
|
|
||
Deferred income tax benefit (expense)
|
(263
|
)
|
|
—
|
|
||
Net (increase) decrease in loans HFS
|
(3,125
|
)
|
|
(2,353
|
)
|
||
Net (increase) decrease in accrued interest receivable
|
(557
|
)
|
|
173
|
|
||
Net (increase) decrease in BOLI
|
(269
|
)
|
|
(276
|
)
|
||
Net increase (decrease) in accrued interest payable
|
241
|
|
|
(129
|
)
|
||
Other operating activities, net
|
(1,539
|
)
|
|
(1,092
|
)
|
||
Net cash provided by operating activities
|
8,547
|
|
|
9,885
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
||||
Activity in AFS securities:
|
|
|
|
||||
Sales
|
—
|
|
|
3,168
|
|
||
Maturities, prepayments, and calls
|
33,255
|
|
|
26,048
|
|
||
Purchases
|
(34,893
|
)
|
|
(3,009
|
)
|
||
Activity in HTM securities:
|
|
|
|
||||
Maturities, prepayments, and calls
|
—
|
|
|
1,235
|
|
||
Purchase of nonmarketable equity securities
|
(43
|
)
|
|
(22
|
)
|
||
Net increase in loans HFI
|
(64,703
|
)
|
|
(78,962
|
)
|
||
Proceeds from sales of foreclosed assets
|
333
|
|
|
71
|
|
||
Purchases of premises and equipment
|
(1,174
|
)
|
|
(1,209
|
)
|
||
Net cash used in investing activities
|
(67,225
|
)
|
|
(52,680
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
||||
Net increase (decrease) in deposits
|
(10,993
|
)
|
|
34,354
|
|
||
Repayments of other borrowed funds
|
—
|
|
|
(90
|
)
|
||
Redemption of junior subordinated debentures
|
(6,186
|
)
|
|
—
|
|
||
Proceeds from exercise of stock options
|
80
|
|
|
29
|
|
||
Proceeds from initial public offering, net
|
26,812
|
|
|
—
|
|
||
Cash dividends
|
(1,326
|
)
|
|
(1,009
|
)
|
||
Net cash provided by financing activities
|
8,387
|
|
|
33,284
|
|
||
Net change in cash and cash equivalents
|
(50,291
|
)
|
|
(9,511
|
)
|
||
Cash and cash equivalents - beginning of period
|
151,906
|
|
|
59,667
|
|
||
Cash and cash equivalents - end of period
|
$
|
101,615
|
|
|
$
|
50,156
|
|
|
|
|
|
||||
SUPPLEMENTAL DISCLOSURES
|
|
|
|
||||
Cash paid during the year for:
|
|
|
|
||||
Interest
|
$
|
4,817
|
|
|
$
|
3,594
|
|
Income taxes
|
$
|
3,323
|
|
|
$
|
2,469
|
|
Initial measurement and recognition of operating lease assets in exchange for lease liabilities
|
$
|
4,954
|
|
|
$
|
—
|
|
1.
|
Summary of Significant Accounting Policies
|
2.
|
Securities
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
As of June 30, 2019
|
|
|
|
|
|
|
|
||||||||
Securities AFS:
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities
|
$
|
209,919
|
|
|
$
|
482
|
|
|
$
|
(1,508
|
)
|
|
$
|
208,893
|
|
Municipal bonds
|
88,010
|
|
|
987
|
|
|
(489
|
)
|
|
88,508
|
|
||||
U.S. agency securities
|
18,527
|
|
|
148
|
|
|
(14
|
)
|
|
18,661
|
|
||||
U.S. Treasury securities
|
1,996
|
|
|
24
|
|
|
—
|
|
|
2,020
|
|
||||
Total Securities AFS
|
$
|
318,452
|
|
|
$
|
1,641
|
|
|
$
|
(2,011
|
)
|
|
$
|
318,082
|
|
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
||||||||
As of December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Securities AFS:
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities
|
$
|
221,799
|
|
|
$
|
11
|
|
|
$
|
(7,122
|
)
|
|
$
|
214,688
|
|
Municipal bonds
|
70,416
|
|
|
94
|
|
|
(2,235
|
)
|
|
68,275
|
|
||||
U.S. agency securities
|
23,170
|
|
|
6
|
|
|
(261
|
)
|
|
22,915
|
|
||||
U.S. Treasury securities
|
1,994
|
|
|
5
|
|
|
—
|
|
|
1,999
|
|
||||
Total Securities AFS
|
$
|
317,379
|
|
|
$
|
116
|
|
|
$
|
(9,618
|
)
|
|
$
|
307,877
|
|
|
Amortized
Cost
|
|
Fair
Value
|
||||
Within one year
|
$
|
9,227
|
|
|
$
|
9,213
|
|
After one year but within five years
|
51,266
|
|
|
51,160
|
|
||
After five years but within ten years
|
86,933
|
|
|
87,172
|
|
||
After ten years
|
171,026
|
|
|
170,537
|
|
||
Total
|
$
|
318,452
|
|
|
$
|
318,082
|
|
|
Less than twelve months
|
|
Twelve months or more
|
||||||||||||
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized Losses |
|
Fair
Value |
||||||||
As of June 30, 2019:
|
|
|
|
|
|
|
|
||||||||
Securities AFS:
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities
|
$
|
(9
|
)
|
|
$
|
1,944
|
|
|
$
|
(1,499
|
)
|
|
$
|
154,672
|
|
Municipal bonds
|
(23
|
)
|
|
2,927
|
|
|
(466
|
)
|
|
25,614
|
|
||||
U.S. agency securities
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
6,986
|
|
||||
Total Securities AFS
|
$
|
(32
|
)
|
|
$
|
4,871
|
|
|
$
|
(1,979
|
)
|
|
$
|
187,272
|
|
|
|
|
|
|
|
|
|
||||||||
As of December 31, 2018:
|
|
|
|
|
|
|
|
||||||||
Securities AFS:
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities
|
$
|
(75
|
)
|
|
$
|
8,845
|
|
|
$
|
(7,047
|
)
|
|
$
|
200,532
|
|
Municipal bonds
|
(48
|
)
|
|
3,389
|
|
|
(2,187
|
)
|
|
52,879
|
|
||||
U.S. agency securities
|
(41
|
)
|
|
3,801
|
|
|
(220
|
)
|
|
14,123
|
|
||||
Total Securities AFS
|
$
|
(164
|
)
|
|
$
|
16,035
|
|
|
$
|
(9,454
|
)
|
|
$
|
267,534
|
|
3.
|
Loans and Asset Quality
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Real estate:
|
|
|
|
||||
Commercial real estate
|
$
|
494,666
|
|
|
$
|
454,689
|
|
One-to-four family residential
|
416,122
|
|
|
406,963
|
|
||
Construction and development
|
119,255
|
|
|
102,868
|
|
||
Commercial and industrial
|
272,278
|
|
|
275,881
|
|
||
Tax-exempt
|
57,497
|
|
|
60,104
|
|
||
Consumer
|
33,336
|
|
|
27,933
|
|
||
Total loans HFI
|
$
|
1,393,154
|
|
|
$
|
1,328,438
|
|
Total loans HFS
|
$
|
6,029
|
|
|
$
|
2,904
|
|
|
Beginning
Balance December 31, 2018
|
|
Provision
for Loan
Losses
|
|
Loans
Charged-off
|
|
Recoveries
|
|
Ending
Balance June 30, 2019 |
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
$
|
3,081
|
|
|
$
|
(101
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,980
|
|
One-to-four family residential
|
3,146
|
|
|
(15
|
)
|
|
(15
|
)
|
|
2
|
|
|
3,118
|
|
|||||
Construction and development
|
951
|
|
|
26
|
|
|
—
|
|
|
77
|
|
|
1,054
|
|
|||||
Commercial and industrial
|
4,604
|
|
|
1,032
|
|
|
(568
|
)
|
|
579
|
|
|
5,647
|
|
|||||
Tax-exempt
|
372
|
|
|
(42
|
)
|
|
—
|
|
|
—
|
|
|
330
|
|
|||||
Consumer
|
370
|
|
|
155
|
|
|
(136
|
)
|
|
73
|
|
|
462
|
|
|||||
Total allowance for loan losses
|
$
|
12,524
|
|
|
$
|
1,055
|
|
|
$
|
(719
|
)
|
|
$
|
731
|
|
|
$
|
13,591
|
|
|
Beginning
Balance December 31, 2017
|
|
Provision
for Loan
Losses
|
|
Loans
Charged-off
|
|
Recoveries
|
|
Ending
Balance December 31, 2018
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
$
|
3,270
|
|
|
$
|
(189
|
)
|
|
$
|
(27
|
)
|
|
$
|
27
|
|
|
$
|
3,081
|
|
One-to-four family residential
|
3,099
|
|
|
(136
|
)
|
|
(4
|
)
|
|
187
|
|
|
3,146
|
|
|||||
Construction and development
|
852
|
|
|
99
|
|
|
—
|
|
|
—
|
|
|
951
|
|
|||||
Commercial and industrial
|
2,836
|
|
|
2,112
|
|
|
(353
|
)
|
|
9
|
|
|
4,604
|
|
|||||
Tax-exempt
|
432
|
|
|
(60
|
)
|
|
—
|
|
|
—
|
|
|
372
|
|
|||||
Consumer
|
406
|
|
|
164
|
|
|
(353
|
)
|
|
153
|
|
|
370
|
|
|||||
Total allowance for loan losses
|
$
|
10,895
|
|
|
$
|
1,990
|
|
|
$
|
(737
|
)
|
|
$
|
376
|
|
|
$
|
12,524
|
|
|
Individually
Evaluated
for
Impairment
|
|
Collectively
Evaluated for Impairment |
|
Acquired with
Deteriorated
Credit
Quality
|
|
Total
|
||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
||||||||
Real estate:
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
$
|
125
|
|
|
$
|
2,855
|
|
|
$
|
—
|
|
|
$
|
2,980
|
|
One-to-four family residential
|
33
|
|
|
3,085
|
|
|
—
|
|
|
3,118
|
|
||||
Construction and development
|
30
|
|
|
1,024
|
|
|
—
|
|
|
1,054
|
|
||||
Commercial and industrial
|
3,472
|
|
|
2,175
|
|
|
—
|
|
|
5,647
|
|
||||
Tax-exempt
|
—
|
|
|
330
|
|
|
—
|
|
|
330
|
|
||||
Consumer
|
64
|
|
|
398
|
|
|
—
|
|
|
462
|
|
||||
Total allowance for loan losses
|
$
|
3,724
|
|
|
$
|
9,867
|
|
|
$
|
—
|
|
|
$
|
13,591
|
|
|
|
|
|
|
|
|
|
||||||||
Loans:
|
|
|
|
|
|
|
|
||||||||
Real estate:
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
$
|
6,073
|
|
|
$
|
488,593
|
|
|
$
|
—
|
|
|
$
|
494,666
|
|
One-to-four family residential
|
1,391
|
|
|
414,731
|
|
|
—
|
|
|
416,122
|
|
||||
Construction and development
|
623
|
|
|
118,632
|
|
|
—
|
|
|
119,255
|
|
||||
Commercial and industrial
|
11,674
|
|
|
260,604
|
|
|
—
|
|
|
272,278
|
|
||||
Tax-exempt
|
—
|
|
|
57,497
|
|
|
—
|
|
|
57,497
|
|
||||
Consumer
|
75
|
|
|
33,261
|
|
|
—
|
|
|
33,336
|
|
||||
Total loans HFI
|
$
|
19,836
|
|
|
$
|
1,373,318
|
|
|
$
|
—
|
|
|
$
|
1,393,154
|
|
|
Individually
Evaluated
for
Impairment
|
|
Collectively
Evaluated for Impairment |
|
Acquired with
Deteriorated
Credit
Quality
|
|
Total
|
||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
||||||||
Real estate:
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
$
|
206
|
|
|
$
|
2,875
|
|
|
$
|
—
|
|
|
$
|
3,081
|
|
One-to-four family residential
|
20
|
|
|
3,126
|
|
|
—
|
|
|
3,146
|
|
||||
Construction and development
|
12
|
|
|
939
|
|
|
—
|
|
|
951
|
|
||||
Commercial and industrial
|
2,304
|
|
|
2,300
|
|
|
—
|
|
|
4,604
|
|
||||
Tax-exempt
|
—
|
|
|
372
|
|
|
—
|
|
|
372
|
|
||||
Consumer
|
75
|
|
|
295
|
|
|
—
|
|
|
370
|
|
||||
Total allowance for loan losses
|
$
|
2,617
|
|
|
$
|
9,907
|
|
|
$
|
—
|
|
|
$
|
12,524
|
|
|
|
|
|
|
|
|
|
||||||||
Loans:
|
|
|
|
|
|
|
|
||||||||
Real estate:
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
$
|
3,829
|
|
|
$
|
450,860
|
|
|
$
|
—
|
|
|
$
|
454,689
|
|
One-to-four family residential
|
2,348
|
|
|
404,615
|
|
|
—
|
|
|
406,963
|
|
||||
Construction and development
|
55
|
|
|
102,813
|
|
|
—
|
|
|
102,868
|
|
||||
Commercial and industrial
|
15,516
|
|
|
260,365
|
|
|
—
|
|
|
275,881
|
|
||||
Tax-exempt
|
—
|
|
|
60,104
|
|
|
—
|
|
|
60,104
|
|
||||
Consumer
|
104
|
|
|
27,829
|
|
|
—
|
|
|
27,933
|
|
||||
Total loans HFI
|
$
|
21,852
|
|
|
$
|
1,306,586
|
|
|
$
|
—
|
|
|
$
|
1,328,438
|
|
|
Accruing
|
|
|
|
|
||||||||||||||
|
Current
|
|
30-89 Days
Past Due |
|
90 Days
or More
Past Due
|
|
Nonaccrual
|
|
Total
Loans
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
$
|
489,291
|
|
|
$
|
699
|
|
|
$
|
3,362
|
|
|
$
|
1,314
|
|
|
$
|
494,666
|
|
One-to-four family residential
|
414,647
|
|
|
337
|
|
|
664
|
|
|
474
|
|
|
416,122
|
|
|||||
Construction and development
|
118,632
|
|
|
—
|
|
|
569
|
|
|
54
|
|
|
119,255
|
|
|||||
Commercial and industrial
|
266,390
|
|
|
195
|
|
|
2,038
|
|
|
3,655
|
|
|
272,278
|
|
|||||
Tax-exempt
|
57,497
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57,497
|
|
|||||
Consumer
|
33,243
|
|
|
72
|
|
|
—
|
|
|
21
|
|
|
33,336
|
|
|||||
Total loans HFI
|
$
|
1,379,700
|
|
|
$
|
1,303
|
|
|
$
|
6,633
|
|
|
$
|
5,518
|
|
|
$
|
1,393,154
|
|
|
Accruing
|
|
|
|
|
||||||||||||||
|
Current
|
|
30-89 Days
Past Due |
|
90 Days
or More
Past Due
|
|
Nonaccrual
|
|
Total
Loans
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
$
|
452,477
|
|
|
$
|
—
|
|
|
$
|
850
|
|
|
$
|
1,362
|
|
|
$
|
454,689
|
|
One-to-four family residential
|
405,961
|
|
|
512
|
|
|
66
|
|
|
424
|
|
|
406,963
|
|
|||||
Construction and development
|
102,776
|
|
|
36
|
|
|
1
|
|
|
55
|
|
|
102,868
|
|
|||||
Commercial and industrial
|
272,174
|
|
|
32
|
|
|
—
|
|
|
3,675
|
|
|
275,881
|
|
|||||
Tax-exempt
|
60,104
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60,104
|
|
|||||
Consumer
|
27,851
|
|
|
16
|
|
|
22
|
|
|
44
|
|
|
27,933
|
|
|||||
Total loans HFI
|
$
|
1,321,343
|
|
|
$
|
596
|
|
|
$
|
939
|
|
|
$
|
5,560
|
|
|
$
|
1,328,438
|
|
|
Unpaid
Principal
Balance
|
|
Recorded
Investment
|
|
Related
Allowance
|
|
Average
Recorded
Investment
|
||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
||||||||
Real estate:
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
$
|
5,315
|
|
|
$
|
5,172
|
|
|
$
|
—
|
|
|
$
|
3,309
|
|
One-to-four family residential
|
1,287
|
|
|
1,229
|
|
|
—
|
|
|
1,296
|
|
||||
Construction and development
|
335
|
|
|
332
|
|
|
—
|
|
|
121
|
|
||||
Commercial and industrial
|
1,949
|
|
|
1,611
|
|
|
—
|
|
|
5,104
|
|
||||
Tax-exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer
|
12
|
|
|
11
|
|
|
—
|
|
|
11
|
|
||||
Total with no related allowance
|
8,898
|
|
|
8,355
|
|
|
—
|
|
|
9,841
|
|
||||
With allowance recorded:
|
|
|
|
|
|
|
|
||||||||
Real estate:
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
918
|
|
|
901
|
|
|
125
|
|
|
1,128
|
|
||||
One-to-four family residential
|
162
|
|
|
162
|
|
|
33
|
|
|
334
|
|
||||
Construction and development
|
303
|
|
|
291
|
|
|
30
|
|
|
122
|
|
||||
Commercial and industrial
|
11,034
|
|
|
10,063
|
|
|
3,472
|
|
|
7,904
|
|
||||
Tax-exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer
|
66
|
|
|
64
|
|
|
64
|
|
|
82
|
|
||||
Total with related allowance
|
12,483
|
|
|
11,481
|
|
|
3,724
|
|
|
9,570
|
|
||||
Total impaired loans
|
$
|
21,381
|
|
|
$
|
19,836
|
|
|
$
|
3,724
|
|
|
$
|
19,411
|
|
|
Unpaid
Principal
Balance
|
|
Recorded
Investment
|
|
Related
Allowance
|
|
Average
Recorded
Investment
|
||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
||||||||
Real estate:
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
$
|
2,376
|
|
|
$
|
2,255
|
|
|
$
|
—
|
|
|
$
|
2,470
|
|
One-to-four family residential
|
1,912
|
|
|
1,855
|
|
|
—
|
|
|
2,026
|
|
||||
Construction and development
|
18
|
|
|
16
|
|
|
—
|
|
|
738
|
|
||||
Commercial and industrial
|
11,003
|
|
|
9,707
|
|
|
—
|
|
|
8,909
|
|
||||
Tax-exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer
|
12
|
|
|
12
|
|
|
—
|
|
|
10
|
|
||||
Total with no related allowance
|
15,321
|
|
|
13,845
|
|
|
—
|
|
|
14,153
|
|
||||
With allowance recorded:
|
|
|
|
|
|
|
|
||||||||
Real estate:
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
1,584
|
|
|
1,574
|
|
|
206
|
|
|
1,715
|
|
||||
One-to-four family residential
|
507
|
|
|
493
|
|
|
20
|
|
|
497
|
|
||||
Construction and development
|
52
|
|
|
39
|
|
|
12
|
|
|
41
|
|
||||
Commercial and industrial
|
5,809
|
|
|
5,809
|
|
|
2,304
|
|
|
5,813
|
|
||||
Tax-exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer
|
95
|
|
|
92
|
|
|
75
|
|
|
35
|
|
||||
Total with related allowance
|
8,047
|
|
|
8,007
|
|
|
2,617
|
|
|
8,101
|
|
||||
Total impaired loans
|
$
|
23,368
|
|
|
$
|
21,852
|
|
|
$
|
2,617
|
|
|
$
|
22,254
|
|
|
Current
|
|
30-89
Days
Past Due |
|
90 Days
or More
Past Due
|
|
Nonaccrual
|
|
Total
TDRs
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
$
|
1,396
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,314
|
|
|
$
|
2,710
|
|
One-to-four family residential
|
196
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
196
|
|
|||||
Construction and development
|
—
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
38
|
|
|||||
Commercial and industrial
|
37
|
|
|
—
|
|
|
—
|
|
|
2,126
|
|
|
2,163
|
|
|||||
Tax-exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
50
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
50
|
|
|||||
Total
|
$
|
1,679
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,478
|
|
|
$
|
5,157
|
|
Number of TDR loans
|
10
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
16
|
|
|
Current
|
|
30-89
Days
Past Due |
|
90 Days
or More
Past Due
|
|
Nonaccrual
|
|
Total
TDRs
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
$
|
1,267
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,362
|
|
|
$
|
2,629
|
|
One-to-four family residential
|
208
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
208
|
|
|||||
Construction and development
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
39
|
|
|||||
Commercial and industrial
|
41
|
|
|
—
|
|
|
—
|
|
|
2,139
|
|
|
2,180
|
|
|||||
Tax-exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
56
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|||||
Total
|
$
|
1,572
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,540
|
|
|
$
|
5,112
|
|
Number of TDR loans
|
10
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
16
|
|
|
June 30, 2019
|
|
June 30, 2018
|
||||||||||||||||||
|
|
|
Recorded Investment
|
|
|
|
Recorded Investment
|
||||||||||||||
|
Loan
Count
|
|
Pre
Modification
|
|
Post
Modification
|
|
Loan
Count
|
|
Pre
Modification
|
|
Post
Modification
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
1
|
|
|
$
|
166
|
|
|
$
|
166
|
|
|
1
|
|
|
$
|
435
|
|
|
$
|
479
|
|
One-to-four family residential
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
40
|
|
|
40
|
|
||||
Construction and development
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial and industrial
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Tax-exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
1
|
|
|
$
|
166
|
|
|
$
|
166
|
|
|
2
|
|
|
$
|
475
|
|
|
$
|
519
|
|
|
Pass
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Total
|
||||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate
|
$
|
477,669
|
|
|
$
|
14,218
|
|
|
$
|
2,779
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
494,666
|
|
One-to-four family residential
|
411,734
|
|
|
3,039
|
|
|
1,349
|
|
|
—
|
|
|
—
|
|
|
416,122
|
|
||||||
Construction and development
|
117,323
|
|
|
581
|
|
|
1,351
|
|
|
—
|
|
|
—
|
|
|
119,255
|
|
||||||
Commercial and industrial
|
250,323
|
|
|
10,222
|
|
|
11,733
|
|
|
—
|
|
|
—
|
|
|
272,278
|
|
||||||
Tax-exempt
|
57,497
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57,497
|
|
||||||
Consumer
|
33,170
|
|
|
30
|
|
|
136
|
|
|
—
|
|
|
—
|
|
|
33,336
|
|
||||||
Total loans HFI
|
$
|
1,347,716
|
|
|
$
|
28,090
|
|
|
$
|
17,348
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,393,154
|
|
|
Pass
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Total
|
||||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate
|
$
|
439,580
|
|
|
$
|
11,883
|
|
|
$
|
3,226
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
454,689
|
|
One-to-four family residential
|
402,864
|
|
|
1,992
|
|
|
2,107
|
|
|
—
|
|
|
—
|
|
|
406,963
|
|
||||||
Construction and development
|
101,754
|
|
|
375
|
|
|
739
|
|
|
—
|
|
|
—
|
|
|
102,868
|
|
||||||
Commercial and industrial
|
251,987
|
|
|
8,311
|
|
|
15,583
|
|
|
—
|
|
|
—
|
|
|
275,881
|
|
||||||
Tax-exempt
|
60,104
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60,104
|
|
||||||
Consumer
|
27,729
|
|
|
44
|
|
|
160
|
|
|
—
|
|
|
—
|
|
|
27,933
|
|
||||||
Total loans HFI
|
$
|
1,284,018
|
|
|
$
|
22,605
|
|
|
$
|
21,815
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,328,438
|
|
4.
|
Junior Subordinated Debentures
|
|
Trust II
|
|
Trust III
|
|
FBT CT I
|
|
Total
|
||||||||
As of June 30, 2019:
|
|
|
|
|
|
|
|
||||||||
Trust preferred securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,000
|
|
|
$
|
5,000
|
|
Common securities
|
—
|
|
|
—
|
|
|
155
|
|
|
155
|
|
||||
Total junior subordinated debentures
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,155
|
|
|
$
|
5,155
|
|
|
|
|
|
|
|
|
|
||||||||
As of December 31, 2018:
|
|
|
|
|
|
|
|
||||||||
Trust preferred securities
|
$
|
3,000
|
|
|
$
|
3,000
|
|
|
$
|
5,000
|
|
|
$
|
11,000
|
|
Common securities
|
93
|
|
|
93
|
|
|
155
|
|
|
341
|
|
||||
Total junior subordinated debentures
|
$
|
3,093
|
|
|
$
|
3,093
|
|
|
$
|
5,155
|
|
|
$
|
11,341
|
|
|
|
|
|
|
|
|
|
||||||||
Issue date
|
May 28, 2003
|
|
|
April 20, 2005
|
|
|
September 4, 2003
|
|
|
|
|||||
Call date
|
May 28, 2008
|
|
|
June 15, 2010
|
|
|
August 8, 2008
|
|
|
|
|||||
Maturity date
|
May 28, 2033
|
|
|
June 15, 2035
|
|
|
August 8, 2033
|
|
|
|
|||||
Redemption date
|
June 30, 2019
|
|
|
June 17, 2019
|
|
|
August 8, 2019
|
|
|
|
|||||
Interest rate as of June 30, 2019(1)
|
5.84
|
%
|
|
4.58
|
%
|
|
5.58
|
%
|
|
|
|||||
Interest rate as of December 31, 2018
|
5.65
|
%
|
|
4.30
|
%
|
|
5.34
|
%
|
|
|
(1)
|
Interest rate is the earlier of June 30, 2019, or at the date of redemption.
|
5.
|
Leases
|
Cash paid for amounts included in measurement of lease liabilities for operating leases
|
$
|
250
|
|
Weighted average remaining operating lease term
|
10.8 years
|
|
|
Weighted average operating lease discount rate
|
3.4
|
%
|
|
|
Amount
|
||
6 months remaining in 2019
|
|
$
|
250
|
|
2020
|
|
520
|
|
|
2021
|
|
529
|
|
|
2022
|
|
537
|
|
|
2023
|
|
539
|
|
|
Thereafter
|
|
3,354
|
|
|
Total lease payments
|
|
5,729
|
|
|
Less: Imputed interest
|
|
(956
|
)
|
|
Present value of lease liabilities
|
|
$
|
4,773
|
|
6.
|
Fair Value
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
June 30, 2019
|
|
|
|
|
|
|
|
||||||||
Loans HFS
|
$
|
6,029
|
|
|
$
|
—
|
|
|
$
|
6,029
|
|
|
$
|
—
|
|
Securities AFS:
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities
|
208,893
|
|
|
—
|
|
|
208,893
|
|
|
—
|
|
||||
U.S. agency securities
|
18,661
|
|
|
—
|
|
|
18,661
|
|
|
—
|
|
||||
Municipal bonds
|
88,508
|
|
|
—
|
|
|
88,508
|
|
|
—
|
|
||||
U.S. Treasury securities
|
2,020
|
|
|
—
|
|
|
2,020
|
|
|
—
|
|
||||
Equity securities
|
3,924
|
|
|
3,924
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Loans HFS
|
$
|
2,904
|
|
|
$
|
—
|
|
|
$
|
2,904
|
|
|
$
|
—
|
|
Securities AFS:
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities
|
214,688
|
|
|
—
|
|
|
214,688
|
|
|
—
|
|
||||
U.S. agency securities
|
22,915
|
|
|
—
|
|
|
22,915
|
|
|
—
|
|
||||
Municipal bonds
|
68,275
|
|
|
—
|
|
|
68,275
|
|
|
—
|
|
||||
U.S. Treasury securities
|
1,999
|
|
|
—
|
|
|
1,999
|
|
|
—
|
|
||||
Equity securities
|
3,821
|
|
|
3,821
|
|
|
—
|
|
|
—
|
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
June 30, 2019
|
|
|
|
|
|
|
|
||||||||
Impaired loans
|
$
|
16,112
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
16,112
|
|
Foreclosed assets
|
1,107
|
|
|
—
|
|
|
—
|
|
|
1,107
|
|
||||
|
|
|
|
|
|
|
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Impaired loans
|
$
|
19,235
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
19,235
|
|
Foreclosed assets
|
646
|
|
|
—
|
|
|
—
|
|
|
646
|
|
|
Carrying
Amount
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
$
|
29,854
|
|
|
$
|
29,854
|
|
|
$
|
29,854
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest-bearing deposits in other banks
|
71,761
|
|
|
71,761
|
|
|
71,761
|
|
|
—
|
|
|
—
|
|
|||||
Securities AFS
|
318,082
|
|
|
318,082
|
|
|
—
|
|
|
318,082
|
|
|
—
|
|
|||||
Equity securities
|
3,924
|
|
|
3,924
|
|
|
3,924
|
|
|
—
|
|
|
—
|
|
|||||
Nonmarketable equity securities
|
1,342
|
|
|
1,342
|
|
|
—
|
|
|
1,342
|
|
|
—
|
|
|||||
Loans HFS
|
6,029
|
|
|
6,029
|
|
|
—
|
|
|
6,029
|
|
|
—
|
|
|||||
Loans HFI, net of allowance
|
1,379,563
|
|
|
1,368,933
|
|
|
—
|
|
|
—
|
|
|
1,368,933
|
|
|||||
Accrued interest receivable
|
5,570
|
|
|
5,570
|
|
|
—
|
|
|
—
|
|
|
5,570
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
1,634,590
|
|
|
1,633,948
|
|
|
—
|
|
|
1,633,948
|
|
|
—
|
|
|||||
Junior subordinated debentures
|
5,155
|
|
|
5,155
|
|
|
—
|
|
|
5,155
|
|
|
—
|
|
|||||
Accrued interest payable
|
1,998
|
|
|
1,998
|
|
|
—
|
|
|
1,998
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
$
|
34,070
|
|
|
$
|
34,070
|
|
|
$
|
34,070
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest-bearing deposits in other banks
|
117,836
|
|
|
117,836
|
|
|
117,836
|
|
|
—
|
|
|
—
|
|
|||||
Securities AFS
|
307,877
|
|
|
307,877
|
|
|
—
|
|
|
307,877
|
|
|
—
|
|
|||||
Equity securities
|
3,821
|
|
|
3,821
|
|
|
3,821
|
|
|
—
|
|
|
—
|
|
|||||
Nonmarketable equity securities
|
1,299
|
|
|
1,299
|
|
|
—
|
|
|
1,299
|
|
|
—
|
|
|||||
Loans HFS
|
2,904
|
|
|
2,904
|
|
|
—
|
|
|
2,904
|
|
|
—
|
|
|||||
Loans HFI, net of allowance
|
1,315,914
|
|
|
1,301,960
|
|
|
—
|
|
|
—
|
|
|
1,301,960
|
|
|||||
Accrued interest receivable
|
5,013
|
|
|
5,013
|
|
|
—
|
|
|
—
|
|
|
5,013
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
1,645,583
|
|
|
1,641,136
|
|
|
—
|
|
|
1,641,136
|
|
|
—
|
|
|||||
Junior subordinated debentures
|
11,341
|
|
|
11,341
|
|
|
—
|
|
|
11,341
|
|
|
—
|
|
|||||
Accrued interest payable
|
1,757
|
|
|
1,757
|
|
|
—
|
|
|
1,757
|
|
|
—
|
|
7.
|
Regulatory Capital Requirements
|
|
|
|
|
|
Regulatory Requirements
|
|||||||||||||||
|
Actual
|
|
Minimum To Be
Adequately Capitalized |
|
Under Prompt
Corrective Action Provisons |
|||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
Red River Bank
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
June 30, 2019:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Risk-Based Capital
|
$
|
223,928
|
|
|
15.71
|
%
|
|
$
|
114,048
|
|
|
8.00
|
%
|
|
$
|
149,689
|
|
|
10.50
|
%
|
Tier I Risk-Based Capital
|
$
|
210,337
|
|
|
14.75
|
%
|
|
$
|
85,536
|
|
|
6.00
|
%
|
|
$
|
121,177
|
|
|
8.50
|
%
|
Common Equity Tier I Capital
|
$
|
210,337
|
|
|
14.75
|
%
|
|
$
|
64,152
|
|
|
4.50
|
%
|
|
$
|
99,792
|
|
|
7.00
|
%
|
Tier I Leverage Capital
|
$
|
210,337
|
|
|
11.18
|
%
|
|
$
|
75,242
|
|
|
4.00
|
%
|
|
$
|
94,052
|
|
|
5.00
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
December 31, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Risk-Based Capital
|
$
|
211,240
|
|
|
15.66
|
%
|
|
$
|
107,912
|
|
|
8.00
|
%
|
|
$
|
133,204
|
|
|
9.88
|
%
|
Tier I Risk-Based Capital
|
$
|
198,716
|
|
|
14.73
|
%
|
|
$
|
80,934
|
|
|
6.00
|
%
|
|
$
|
106,226
|
|
|
7.88
|
%
|
Common Equity Tier I Capital
|
$
|
198,716
|
|
|
14.73
|
%
|
|
$
|
60,701
|
|
|
4.50
|
%
|
|
$
|
85,993
|
|
|
6.38
|
%
|
Tier I Leverage Capital
|
$
|
198,716
|
|
|
10.76
|
%
|
|
$
|
73,874
|
|
|
4.00
|
%
|
|
$
|
92,343
|
|
|
5.00
|
%
|
|
Actual
|
|||||
|
Amount
|
|
Ratio
|
|||
Red River Bancshares, Inc.
|
|
|
|
|||
June 30, 2019:
|
|
|
|
|||
Total Risk-Based Capital
|
$
|
255,249
|
|
|
17.90
|
%
|
Tier I Risk-Based Capital
|
$
|
241,658
|
|
|
16.95
|
%
|
Common Equity Tier I Capital
|
$
|
236,658
|
|
|
16.60
|
%
|
Tier I Leverage Capital
|
$
|
241,658
|
|
|
12.83
|
%
|
|
|
|
|
|||
December 31, 2018:
|
|
|
|
|||
Total Risk-Based Capital
|
$
|
223,187
|
|
|
16.55
|
%
|
Tier I Risk-Based Capital
|
$
|
210,663
|
|
|
15.62
|
%
|
Common Equity Tier I Capital
|
$
|
199,663
|
|
|
14.80
|
%
|
Tier I Leverage Capital
|
$
|
210,663
|
|
|
11.40
|
%
|
8.
|
Equity Events
|
9.
|
Earnings Per Common Share
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income - basic
|
$
|
5,538
|
|
|
$
|
5,532
|
|
|
$
|
11,234
|
|
|
$
|
10,763
|
|
Net income - diluted
|
$
|
5,538
|
|
|
$
|
5,532
|
|
|
$
|
11,234
|
|
|
$
|
10,763
|
|
|
|
|
|
|
|
|
|
||||||||
Denominator:(1)
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding, basic
|
7,037,834
|
|
|
6,725,246
|
|
|
6,836,278
|
|
|
6,723,235
|
|
||||
Plus: Effect of Director Compensation Program
|
590
|
|
|
606
|
|
|
1,073
|
|
|
1,283
|
|
||||
Plus: Effect of stock options and restricted stock
|
36,345
|
|
|
43,606
|
|
|
37,209
|
|
|
44,130
|
|
||||
Weighted average shares outstanding, diluted
|
7,074,769
|
|
|
6,769,458
|
|
|
6,874,560
|
|
|
6,768,648
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.79
|
|
|
$
|
0.82
|
|
|
$
|
1.64
|
|
|
$
|
1.60
|
|
Diluted
|
$
|
0.78
|
|
|
$
|
0.82
|
|
|
$
|
1.63
|
|
|
$
|
1.59
|
|
(1)
|
2018 amounts adjusted to give effect to the 2018 2-for-1 stock split
|
10.
|
Subsequent Events
|
|
As of
|
|
Change from
December 31, 2018 to June 30, 2019 |
|||||||||||
|
June 30,
2019 |
|
December 31, 2018
|
|
$ Change
|
|
% Change
|
|||||||
|
(Dollars in thousands)
|
|||||||||||||
Selected Period End Balance Sheet Data:
|
|
|
|
|
|
|
|
|||||||
Total assets
|
$
|
1,892,918
|
|
|
$
|
1,860,588
|
|
|
$
|
32,330
|
|
|
1.7
|
%
|
Securities available-for-sale
|
318,082
|
|
|
307,877
|
|
|
10,205
|
|
|
3.3
|
%
|
|||
Loans held for investment
|
1,393,154
|
|
|
1,328,438
|
|
|
64,716
|
|
|
4.9
|
%
|
|||
Total deposits
|
1,634,590
|
|
|
1,645,583
|
|
|
(10,993
|
)
|
|
(0.7
|
)%
|
|||
Junior subordinated debentures
|
5,155
|
|
|
11,341
|
|
|
(6,186
|
)
|
|
(54.5
|
)%
|
|||
Total stockholders’ equity
|
237,911
|
|
|
193,703
|
|
|
44,208
|
|
|
22.8
|
%
|
|
|
As of and for the
three months ended
|
|
As of and for the
six months ended
|
||||||||||||||||
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
||||||||||
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||
|
|
(Dollars in thousands, except per share data)
|
||||||||||||||||||
Net Income
|
|
$
|
5,538
|
|
|
$
|
5,696
|
|
|
$
|
5,532
|
|
|
$
|
11,234
|
|
|
$
|
10,763
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Per Common Share Data:(1)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per share, basic
|
|
$
|
0.79
|
|
|
$
|
0.86
|
|
|
$
|
0.82
|
|
|
$
|
1.64
|
|
|
$
|
1.60
|
|
Earnings per share, diluted
|
|
$
|
0.78
|
|
|
$
|
0.85
|
|
|
$
|
0.82
|
|
|
$
|
1.63
|
|
|
$
|
1.59
|
|
Book value per share
|
|
$
|
32.59
|
|
|
$
|
30.46
|
|
|
$
|
27.37
|
|
|
$
|
32.59
|
|
|
$
|
27.37
|
|
Tangible book value per share
|
|
$
|
32.38
|
|
|
$
|
30.23
|
|
|
$
|
27.14
|
|
|
$
|
32.38
|
|
|
$
|
27.14
|
|
Cash dividends per share
|
|
$
|
—
|
|
|
$
|
0.20
|
|
|
$
|
—
|
|
|
$
|
0.20
|
|
|
$
|
0.15
|
|
Weighted average shares outstanding, basic
|
|
7,037,834
|
|
6,632,482
|
|
6,725,246
|
|
6,836,278
|
|
6,723,235
|
||||||||||
Weighted average shares outstanding, diluted
|
|
7,074,769
|
|
6,668,029
|
|
6,769,458
|
|
6,874,560
|
|
6,768,648
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Summary Performance Ratios:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets
|
|
1.18
|
%
|
|
1.24
|
%
|
|
1.26
|
%
|
|
1.21
|
%
|
|
1.24
|
%
|
|||||
Return on average equity
|
|
9.92
|
%
|
|
11.69
|
%
|
|
12.22
|
%
|
|
10.74
|
%
|
|
12.02
|
%
|
|||||
Net interest margin
|
|
3.46
|
%
|
|
3.47
|
%
|
|
3.41
|
%
|
|
3.47
|
%
|
|
3.37
|
%
|
|||||
Net interest margin (FTE)
|
|
3.51
|
%
|
|
3.52
|
%
|
|
3.45
|
%
|
|
3.52
|
%
|
|
3.42
|
%
|
|||||
Efficiency ratio
|
|
62.81
|
%
|
|
59.52
|
%
|
|
60.05
|
%
|
|
61.20
|
%
|
|
60.21
|
%
|
|||||
Loans HFI to deposits ratio
|
|
85.23
|
%
|
|
79.78
|
%
|
|
85.02
|
%
|
|
85.23
|
%
|
|
85.02
|
%
|
|||||
Noninterest-bearing deposits to deposits ratio
|
|
35.30
|
%
|
|
33.45
|
%
|
|
35.04
|
%
|
|
35.30
|
%
|
|
35.04
|
%
|
|||||
Noninterest income to average assets
|
|
0.87
|
%
|
|
0.72
|
%
|
|
0.83
|
%
|
|
0.80
|
%
|
|
0.78
|
%
|
|||||
Operating expense to average assets
|
|
2.65
|
%
|
|
2.43
|
%
|
|
2.48
|
%
|
|
2.54
|
%
|
|
2.44
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Summary Credit Quality Ratios:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonperforming assets to total assets
|
|
0.70
|
%
|
|
0.34
|
%
|
|
0.70
|
%
|
|
0.70
|
%
|
|
0.70
|
%
|
|||||
Nonperforming loans to loans HFI
|
|
0.87
|
%
|
|
0.46
|
%
|
|
0.84
|
%
|
|
0.87
|
%
|
|
0.84
|
%
|
|||||
Allowance for loan losses to loans HFI
|
|
0.98
|
%
|
|
0.97
|
%
|
|
0.89
|
%
|
|
0.98
|
%
|
|
0.89
|
%
|
|||||
Net charge-offs to average loans outstanding
|
|
0.00
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
0.01
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital Ratios:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total stockholders’ equity to total assets
|
|
12.57
|
%
|
|
10.52
|
%
|
|
10.43
|
%
|
|
12.57
|
%
|
|
10.43
|
%
|
|||||
Tangible common equity to tangible assets
|
|
12.50
|
%
|
|
10.45
|
%
|
|
10.35
|
%
|
|
12.50
|
%
|
|
10.35
|
%
|
|||||
Total risk-based capital to risk-weighted assets
|
|
17.90
|
%
|
|
16.52
|
%
|
|
16.44
|
%
|
|
17.90
|
%
|
|
16.44
|
%
|
|||||
Tier 1 risk-based capital to risk-weighted assets
|
|
16.95
|
%
|
|
15.57
|
%
|
|
15.54
|
%
|
|
16.95
|
%
|
|
15.54
|
%
|
|||||
Common equity tier 1 capital to risk-weighted assets
|
|
16.60
|
%
|
|
14.78
|
%
|
|
14.69
|
%
|
|
16.60
|
%
|
|
14.69
|
%
|
|||||
Tier 1 risk-based capital to average assets
|
|
12.83
|
%
|
|
11.50
|
%
|
|
11.41
|
%
|
|
12.83
|
%
|
|
11.41
|
%
|
(1)
|
2018 amounts adjusted to give effect to the 2018 2-for-1 stock split.
|
|
Amounts as of June 30, 2019
|
||||||||||||||
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair Value
|
||||||||
|
(in thousands)
|
||||||||||||||
Securities AFS:
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities
|
$
|
209,919
|
|
|
$
|
482
|
|
|
$
|
(1,508
|
)
|
|
$
|
208,893
|
|
Municipal bonds
|
88,010
|
|
|
987
|
|
|
(489
|
)
|
|
88,508
|
|
||||
U.S. agency securities
|
18,527
|
|
|
148
|
|
|
(14
|
)
|
|
18,661
|
|
||||
U.S. Treasury securities
|
1,996
|
|
|
24
|
|
|
—
|
|
|
2,020
|
|
||||
Total Securities AFS
|
$
|
318,452
|
|
|
$
|
1,641
|
|
|
$
|
(2,011
|
)
|
|
$
|
318,082
|
|
|
Amounts as of December 31,2018
|
||||||||||||||
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair Value
|
||||||||
|
(in thousands)
|
||||||||||||||
Securities AFS:
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities
|
$
|
221,799
|
|
|
$
|
11
|
|
|
$
|
(7,122
|
)
|
|
$
|
214,688
|
|
Municipal bonds
|
70,416
|
|
|
94
|
|
|
(2,235
|
)
|
|
68,275
|
|
||||
U.S. agency securities
|
23,170
|
|
|
6
|
|
|
(261
|
)
|
|
22,915
|
|
||||
U.S. Treasury securities
|
1,994
|
|
|
5
|
|
|
—
|
|
|
1,999
|
|
||||
Total Securities AFS
|
$
|
317,379
|
|
|
$
|
116
|
|
|
$
|
(9,618
|
)
|
|
$
|
307,877
|
|
|
Amounts as of June 30, 2019 which mature
|
|||||||||||||||||||||||||||||||||
|
Within
One Year
|
|
After One Year
but Within
Five Years
|
|
After Five Years
but Within
Ten Years
|
|
After
Ten Years
|
|
Total
|
|||||||||||||||||||||||||
|
Amount
|
|
Yield(1)
|
|
Amount
|
|
Yield(1)
|
|
Amount
|
|
Yield(1)
|
|
Amount
|
|
Yield(1)
|
|
Amount
|
|
Yield(1)
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||
Securities AFS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Mortgage-backed securities
|
$
|
23
|
|
|
2.93
|
%
|
|
$
|
28,489
|
|
|
1.75
|
%
|
|
$
|
44,264
|
|
|
2.07
|
%
|
|
$
|
136,117
|
|
|
2.21
|
%
|
|
$
|
208,893
|
|
|
2.12
|
%
|
Municipal bonds
|
2,199
|
|
|
1.61
|
%
|
|
16,444
|
|
|
2.22
|
%
|
|
37,396
|
|
|
2.72
|
%
|
|
32,469
|
|
|
3.49
|
%
|
|
88,508
|
|
|
2.88
|
%
|
|||||
U.S. agency securities
|
6,991
|
|
|
1.44
|
%
|
|
4,207
|
|
|
2.38
|
%
|
|
5,512
|
|
|
2.59
|
%
|
|
1,951
|
|
|
2.98
|
%
|
|
18,661
|
|
|
2.15
|
%
|
|||||
U.S. Treasury securities
|
—
|
|
|
—
|
%
|
|
2,020
|
|
|
2.84
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
2,020
|
|
|
2.84
|
%
|
|||||
Total Securities AFS
|
$
|
9,213
|
|
|
1.48
|
%
|
|
$
|
51,160
|
|
|
1.99
|
%
|
|
$
|
87,172
|
|
|
2.38
|
%
|
|
$
|
170,537
|
|
|
2.46
|
%
|
|
$
|
318,082
|
|
|
2.33
|
%
|
(1)
|
Tax equivalent projected book yield as of the date indicated.
|
|
Amounts as of December 31, 2018 which mature
|
|||||||||||||||||||||||||||||||||
|
Within
One Year
|
|
After One Year
but Within
Five Years
|
|
After Five Years
but Within
Ten Years
|
|
After
Ten Years
|
|
Total
|
|||||||||||||||||||||||||
|
Amount
|
|
Yield(1)
|
|
Amount
|
|
Yield(1)
|
|
Amount
|
|
Yield(1)
|
|
Amount
|
|
Yield(1)
|
|
Amount
|
|
Yield(1)
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||
Securities AFS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Mortgage-backed securities
|
$
|
9
|
|
|
2.70
|
%
|
|
$
|
29,591
|
|
|
1.73
|
%
|
|
$
|
45,409
|
|
|
1.98
|
%
|
|
$
|
139,679
|
|
|
2.23
|
%
|
|
$
|
214,688
|
|
|
2.11
|
%
|
Municipal bonds
|
5,647
|
|
|
2.35
|
%
|
|
10,084
|
|
|
2.26
|
%
|
|
35,727
|
|
|
2.60
|
%
|
|
16,817
|
|
|
3.51
|
%
|
|
68,275
|
|
|
2.76
|
%
|
|||||
U.S. agency securities
|
6,934
|
|
|
1.44
|
%
|
|
9,348
|
|
|
2.67
|
%
|
|
4,670
|
|
|
2.53
|
%
|
|
1,963
|
|
|
2.81
|
%
|
|
22,915
|
|
|
2.28
|
%
|
|||||
U.S. treasury securities
|
—
|
|
|
—
|
%
|
|
1,999
|
|
|
2.84
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
1,999
|
|
|
2.84
|
%
|
|||||
Total Securities AFS
|
$
|
12,590
|
|
|
1.85
|
%
|
|
$
|
51,022
|
|
|
2.05
|
%
|
|
$
|
85,806
|
|
|
2.27
|
%
|
|
$
|
158,459
|
|
|
2.37
|
%
|
|
$
|
307,877
|
|
|
2.27
|
%
|
(1)
|
Tax equivalent projected book yield as of the date indicated.
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||
|
(Dollars in thousands)
|
||||||||||||
Real estate:
|
|
|
|
|
|
|
|
||||||
Commercial real estate
|
$
|
494,666
|
|
|
35.5
|
%
|
|
$
|
454,689
|
|
|
34.2
|
%
|
One-to-four family residential
|
416,122
|
|
|
29.9
|
%
|
|
406,963
|
|
|
30.7
|
%
|
||
Construction and development
|
119,255
|
|
|
8.6
|
%
|
|
102,868
|
|
|
7.7
|
%
|
||
Commercial and industrial
|
272,278
|
|
|
19.5
|
%
|
|
275,881
|
|
|
20.8
|
%
|
||
Tax-exempt
|
57,497
|
|
|
4.1
|
%
|
|
60,104
|
|
|
4.5
|
%
|
||
Consumer
|
33,336
|
|
|
2.4
|
%
|
|
27,933
|
|
|
2.1
|
%
|
||
Total loans HFI
|
$
|
1,393,154
|
|
|
100.0
|
%
|
|
$
|
1,328,438
|
|
|
100.0
|
%
|
Total loans HFS
|
$
|
6,029
|
|
|
|
|
$
|
2,904
|
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
(Dollars in thousands)
|
||||||
Nonperforming loans:
|
|
|
|
||||
Nonaccrual loans
|
$
|
5,518
|
|
|
$
|
5,560
|
|
Accruing loans 90 or more days past due
|
6,633
|
|
|
939
|
|
||
Total nonperforming loans
|
12,151
|
|
|
6,499
|
|
||
Foreclosed assets:
|
|
|
|
||||
Real estate
|
1,062
|
|
|
646
|
|
||
Other
|
17
|
|
|
—
|
|
||
Total foreclosed assets
|
1,079
|
|
|
646
|
|
||
Total nonperforming assets
|
$
|
13,230
|
|
|
$
|
7,145
|
|
|
|
|
|
||||
Troubled debt restructurings:(1)
|
|
|
|
||||
Nonaccrual loans
|
$
|
3,478
|
|
|
$
|
3,540
|
|
Accruing loans 90 or more days past due
|
—
|
|
|
—
|
|
||
Performing loans
|
1,679
|
|
|
1,572
|
|
||
Total troubled debt restructurings
|
$
|
5,157
|
|
|
$
|
5,112
|
|
|
|
|
|
||||
Nonperforming loans to loans HFI(1)
|
0.87
|
%
|
|
0.49
|
%
|
||
Nonperforming assets to total assets
|
0.70
|
%
|
|
0.38
|
%
|
(1)
|
Troubled debt restructurings – nonaccrual and accruing loans 90 or more days past due are included in the respective components of nonperforming loans.
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
(in thousands)
|
||||||
Nonaccrual loans by category:
|
|
|
|
||||
Real estate:
|
|
|
|
||||
Commercial real estate
|
$
|
1,314
|
|
|
$
|
1,362
|
|
One-to-four family residential
|
474
|
|
|
424
|
|
||
Construction and development
|
54
|
|
|
55
|
|
||
Commercial and industrial
|
3,655
|
|
|
3,675
|
|
||
Tax-exempt
|
—
|
|
|
—
|
|
||
Consumer
|
21
|
|
|
44
|
|
||
Total
|
$
|
5,518
|
|
|
$
|
5,560
|
|
•
|
for commercial real estate loans, the debt service coverage ratio (income from the business in excess of operating expenses compared to loan repayment requirements); operating results of the owner in the case of owner occupied properties; the loan to value ratio; the age and condition of the collateral; and the volatility of income, property value, and future operating results typical of properties of that type;
|
•
|
for one-to-four family residential mortgage loans, the borrower’s ability to repay the loan, including a consideration of the debt to income ratio and employment and income stability; the loan-to-value ratio; and the age, condition, and marketability of the collateral;
|
•
|
for construction and development loans, the perceived feasibility of the project including the ability to sell developed lots or improvements constructed for resale or the ability to lease property constructed for lease; the quality and nature of contracts for presale or prelease, if any; experience and ability of the developer; and the loan to value ratio; and
|
•
|
for commercial and industrial loans, the debt service coverage ratio; the operating results of the commercial, industrial, or professional enterprise; the borrower’s business, professional, and financial ability and expertise; the specific risks and volatility of income and operating results typical for businesses in that category; the value, nature, and marketability of collateral; and the financial resources of the guarantor(s), if any.
|
|
Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
|
(Dollars in thousands)
|
||||||
Loans HFI
|
$
|
1,393,154
|
|
|
$
|
1,326,552
|
|
Average loans outstanding
|
$
|
1,358,347
|
|
|
$
|
1,287,156
|
|
Allowance for loan losses at beginning of period
|
$
|
12,524
|
|
|
$
|
10,895
|
|
Provision for loan losses
|
1,055
|
|
|
937
|
|
||
Charge-offs:
|
|
|
|
||||
Real estate:
|
|
|
|
||||
Commercial real estate
|
—
|
|
|
(27
|
)
|
||
One-to-four family residential
|
(15
|
)
|
|
(4
|
)
|
||
Commercial and industrial
|
(568
|
)
|
|
(41
|
)
|
||
Consumer
|
(136
|
)
|
|
(201
|
)
|
||
Total charge-offs
|
(719
|
)
|
|
(273
|
)
|
||
Recoveries:
|
|
|
|
||||
Real estate:
|
|
|
|
||||
One-to-four family residential
|
2
|
|
|
102
|
|
||
Construction and development
|
77
|
|
|
—
|
|
||
Commercial and industrial
|
579
|
|
|
7
|
|
||
Consumer
|
73
|
|
|
88
|
|
||
Total recoveries
|
731
|
|
|
197
|
|
||
Net (charge-offs) recoveries
|
12
|
|
|
(76
|
)
|
||
Allowance for loan losses at end of period
|
$
|
13,591
|
|
|
$
|
11,756
|
|
Allowance for loan losses to loans HFI
|
0.98
|
%
|
|
0.89
|
%
|
||
Net charge-offs to average loans outstanding
|
0.00
|
%
|
|
0.01
|
%
|
|
|
|
|
|
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
|
Change from
December 31, 2018 to June 30, 2019 |
|||||||||||||||
|
Balance
|
|
% of Total
|
|
Balance
|
|
% of Total
|
|
$ Change
|
|
% Change
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Noninterest-bearing deposits
|
$
|
576,934
|
|
|
35.3
|
%
|
|
$
|
547,880
|
|
|
33.3
|
%
|
|
$
|
29,054
|
|
|
5.3
|
%
|
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Money market accounts
|
349,697
|
|
|
21.4
|
%
|
|
358,575
|
|
|
21.8
|
%
|
|
(8,878
|
)
|
|
(2.5
|
)%
|
|||
Time deposits <= $250,000
|
249,304
|
|
|
15.2
|
%
|
|
248,274
|
|
|
15.1
|
%
|
|
1,030
|
|
|
0.4
|
%
|
|||
Time deposits > $250,000
|
88,300
|
|
|
5.4
|
%
|
|
81,954
|
|
|
5.0
|
%
|
|
6,346
|
|
|
7.7
|
%
|
|||
NOW accounts
|
264,731
|
|
|
16.2
|
%
|
|
304,545
|
|
|
18.5
|
%
|
|
(39,814
|
)
|
|
(13.1
|
)%
|
|||
Savings accounts
|
105,624
|
|
|
6.5
|
%
|
|
104,355
|
|
|
6.3
|
%
|
|
1,269
|
|
|
1.2
|
%
|
|||
Total deposits
|
$
|
1,634,590
|
|
|
100.0
|
%
|
|
$
|
1,645,583
|
|
|
100.0
|
%
|
|
$
|
(10,993
|
)
|
|
(0.7
|
)%
|
|
June 30, 2019
|
|
December 31, 2018
|
|
Change from
December 31, 2018 to June 30, 2019 |
|||||||||||||||
|
Balance
|
|
% of Total
|
|
Balance
|
|
% of Total
|
|
$ Change
|
|
% Change
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Consumer
|
$
|
878,250
|
|
|
53.7
|
%
|
|
$
|
869,725
|
|
|
52.8
|
%
|
|
$
|
8,525
|
|
|
1.0
|
%
|
Commercial
|
638,660
|
|
|
39.1
|
%
|
|
611,903
|
|
|
37.2
|
%
|
|
26,757
|
|
|
4.4
|
%
|
|||
Public
|
117,680
|
|
|
7.2
|
%
|
|
163,955
|
|
|
10.0
|
%
|
|
(46,275
|
)
|
|
(28.2
|
)%
|
|||
Total deposits
|
$
|
1,634,590
|
|
|
100.0
|
%
|
|
$
|
1,645,583
|
|
|
100.0
|
%
|
|
$
|
(10,993
|
)
|
|
(0.7
|
)%
|
|
June 30, 2019
|
||
|
(in thousands)
|
||
Three months or less
|
$
|
40,081
|
|
Over three months through six months
|
33,127
|
|
|
Over six months through 12 months
|
64,769
|
|
|
Over 12 months through three years
|
57,870
|
|
|
Over three years
|
25,838
|
|
|
Total
|
$
|
221,685
|
|
|
Issuance
Date
|
|
Maturity
Date
|
|
Redemption Date
|
|
Amount Outstanding
June 30, 2019 |
|
Amount Outstanding
December 31, 2018 |
|
Rate as of June 30, 2019(5)
|
|
Rate as of
December 31, 2018 |
||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Trust II
|
May 28, 2003
|
|
May 28, 2033
|
|
June 30, 2019
|
|
$
|
—
|
|
|
$
|
3,093
|
|
|
5.84
|
%
|
(2)
|
5.65
|
%
|
Trust III
|
April 20, 2005
|
|
June 15, 2035
|
|
June 17, 2019
|
|
—
|
|
|
3,093
|
|
|
4.58
|
%
|
(3)
|
4.30
|
%
|
||
FBT CT I(1)
|
September 4, 2003
|
|
August 8, 2033
|
|
August 8, 2019
|
|
5,155
|
|
|
5,155
|
|
|
5.58
|
%
|
(4)
|
5.34
|
%
|
||
Total
|
|
|
|
|
|
|
$
|
5,155
|
|
|
$
|
11,341
|
|
|
|
|
|
(1)
|
On April 1, 2013, we assumed $5.2 million of floating rate junior subordinated debentures and FBT CT I in conjunction with the acquisition of Fidelity Bancorp, Inc.
|
(2)
|
The trust preferred securities had a variable rate and repriced quarterly based on three-month LIBOR plus 3.25%, with the last reprice date on March 28, 2019.
|
(3)
|
The trust preferred securities had a variable rate and repriced quarterly based on three-month LIBOR plus 1.97%, with the last reprice date on March 13, 2019.
|
(4)
|
The trust preferred securities had a variable rate and repriced quarterly based on three-month LIBOR plus 3.00%, with the last reprice date on April 29, 2019.
|
(5)
|
Interest rate is the earlier of June 30, 2019, or at the date of redemption.
|
|
For the Three Months Ended June 30,
|
||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||
|
Average
Balance
Outstanding
|
|
Interest
Earned/ Interest Paid |
|
Average
Yield/ Rate |
|
Average
Balance
Outstanding
|
|
Interest
Earned/ Interest Paid |
|
Average
Yield/ Rate |
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans(1)
|
$
|
1,372,020
|
|
|
$
|
15,945
|
|
|
4.60
|
%
|
|
$
|
1,308,652
|
|
|
$
|
14,435
|
|
|
4.37
|
%
|
Securities - taxable
|
252,742
|
|
|
1,344
|
|
|
2.13
|
%
|
|
281,466
|
|
|
1,417
|
|
|
2.01
|
%
|
||||
Securities - tax-exempt
|
73,863
|
|
|
440
|
|
|
2.38
|
%
|
|
57,745
|
|
|
327
|
|
|
2.27
|
%
|
||||
Federal funds sold
|
35,390
|
|
|
212
|
|
|
2.37
|
%
|
|
14,351
|
|
|
64
|
|
|
1.76
|
%
|
||||
Interest-bearing balances due from banks
|
52,477
|
|
|
306
|
|
|
2.31
|
%
|
|
28,344
|
|
|
119
|
|
|
1.67
|
%
|
||||
Nonmarketable equity securities
|
1,333
|
|
|
4
|
|
|
1.30
|
%
|
|
1,286
|
|
|
3
|
|
|
0.86
|
%
|
||||
Investment in trusts
|
324
|
|
|
5
|
|
|
5.99
|
%
|
|
341
|
|
|
4
|
|
|
4.60
|
%
|
||||
Total interest-earning assets
|
1,788,149
|
|
|
$
|
18,256
|
|
|
4.05
|
%
|
|
1,692,185
|
|
|
$
|
16,369
|
|
|
3.83
|
%
|
||
Allowance for loan losses
|
(13,299
|
)
|
|
|
|
|
|
(11,460
|
)
|
|
|
|
|
||||||||
Noninterest earning assets
|
105,677
|
|
|
|
|
|
|
86,645
|
|
|
|
|
|
||||||||
Total assets
|
$
|
1,880,527
|
|
|
|
|
|
|
$
|
1,767,370
|
|
|
|
|
|
||||||
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing transaction deposits
|
$
|
733,328
|
|
|
$
|
995
|
|
|
0.54
|
%
|
|
$
|
709,806
|
|
|
$
|
664
|
|
|
0.38
|
%
|
Time deposits
|
332,474
|
|
|
1,454
|
|
|
1.75
|
%
|
|
315,238
|
|
|
1,001
|
|
|
1.27
|
%
|
||||
Total interest-bearing deposits
|
1,065,802
|
|
|
2,449
|
|
|
0.92
|
%
|
|
1,025,044
|
|
|
1,665
|
|
|
0.65
|
%
|
||||
Junior subordinated debentures
|
10,763
|
|
|
156
|
|
|
5.81
|
%
|
|
11,341
|
|
|
136
|
|
|
4.83
|
%
|
||||
Other borrowings
|
—
|
|
|
—
|
|
|
—
|
%
|
|
121
|
|
|
2
|
|
|
5.10
|
%
|
||||
Total interest-bearing liabilities
|
1,076,565
|
|
|
$
|
2,605
|
|
|
0.97
|
%
|
|
1,036,506
|
|
|
$
|
1,803
|
|
|
0.70
|
%
|
||
Noninterest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing deposits
|
564,911
|
|
|
|
|
|
|
540,350
|
|
|
|
|
|
||||||||
Accrued interest and other liabilities
|
15,158
|
|
|
|
|
|
|
8,918
|
|
|
|
|
|
||||||||
Total noninterest-bearing liabilities:
|
580,069
|
|
|
|
|
|
|
549,268
|
|
|
|
|
|
||||||||
Stockholders’ equity
|
223,893
|
|
|
|
|
|
|
181,596
|
|
|
|
|
|
||||||||
Total liabilities and stockholders’ equity
|
$
|
1,880,527
|
|
|
|
|
|
|
$
|
1,767,370
|
|
|
|
|
|
||||||
Net interest income
|
|
|
$
|
15,651
|
|
|
|
|
|
|
$
|
14,566
|
|
|
|
||||||
Net interest spread
|
|
|
|
|
3.08
|
%
|
|
|
|
|
|
3.13
|
%
|
||||||||
Net interest margin
|
|
|
|
|
3.46
|
%
|
|
|
|
|
|
3.41
|
%
|
||||||||
Net interest margin FTE(2)
|
|
|
|
|
3.51
|
%
|
|
|
|
|
|
3.45
|
%
|
||||||||
Cost of deposits
|
|
|
|
|
0.60
|
%
|
|
|
|
|
|
0.43
|
%
|
||||||||
Cost of funds
|
|
|
|
|
0.58
|
%
|
|
|
|
|
|
0.43
|
%
|
(1)
|
Includes average outstanding balances of loans HFS of $3.6 million and $3.8 million for the three months ended June 30, 2019 and 2018, respectively.
|
(2)
|
Net interest margin FTE includes an FTE adjustment using a 21% federal income tax rate on tax-exempt securities and tax-exempt loans.
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||
|
Average
Balance
Outstanding
|
|
Interest
Earned/ Interest Paid |
|
Average
Yield/ Rate |
|
Average
Balance
Outstanding
|
|
Interest
Earned/ Interest Paid |
|
Average
Yield/ Rate |
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans(1)
|
$
|
1,358,347
|
|
|
$
|
31,448
|
|
|
4.61
|
%
|
|
$
|
1,287,156
|
|
|
$
|
28,022
|
|
|
4.33
|
%
|
Securities - taxable
|
257,010
|
|
|
2,723
|
|
|
2.12
|
%
|
|
287,530
|
|
|
2,887
|
|
|
2.01
|
%
|
||||
Securities - tax-exempt
|
69,272
|
|
|
824
|
|
|
2.38
|
%
|
|
58,943
|
|
|
678
|
|
|
2.30
|
%
|
||||
Federal funds sold
|
34,812
|
|
|
425
|
|
|
2.43
|
%
|
|
13,930
|
|
|
114
|
|
|
1.63
|
%
|
||||
Interest-bearing balances due from banks
|
61,425
|
|
|
722
|
|
|
2.34
|
%
|
|
27,927
|
|
|
226
|
|
|
1.61
|
%
|
||||
Nonmarketable equity securities
|
1,316
|
|
|
9
|
|
|
1.29
|
%
|
|
1,279
|
|
|
5
|
|
|
0.79
|
%
|
||||
Investment in trusts
|
332
|
|
|
10
|
|
|
6.08
|
%
|
|
341
|
|
|
8
|
|
|
4.45
|
%
|
||||
Total interest-earning assets
|
1,782,514
|
|
|
$
|
36,161
|
|
|
4.04
|
%
|
|
1,677,106
|
|
|
$
|
31,940
|
|
|
3.79
|
%
|
||
Allowance for loan losses
|
(13,018
|
)
|
|
|
|
|
|
(11,238
|
)
|
|
|
|
|
||||||||
Noninterest earning assets
|
103,623
|
|
|
|
|
|
|
88,409
|
|
|
|
|
|
||||||||
Total assets
|
$
|
1,873,119
|
|
|
|
|
|
|
$
|
1,754,277
|
|
|
|
|
|
||||||
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing transaction deposits
|
$
|
743,416
|
|
|
$
|
1,958
|
|
|
0.53
|
%
|
|
$
|
708,970
|
|
|
$
|
1,221
|
|
|
0.35
|
%
|
Time deposits
|
333,611
|
|
|
2,788
|
|
|
1.69
|
%
|
|
318,365
|
|
|
1,979
|
|
|
1.25
|
%
|
||||
Total interest-bearing deposits
|
1,077,027
|
|
|
4,746
|
|
|
0.89
|
%
|
|
1,027,335
|
|
|
3,200
|
|
|
0.63
|
%
|
||||
Junior subordinated debentures
|
11,050
|
|
|
312
|
|
|
5.69
|
%
|
|
11,341
|
|
|
260
|
|
|
4.63
|
%
|
||||
Other borrowings
|
—
|
|
|
—
|
|
|
—
|
%
|
|
217
|
|
|
4
|
|
|
3.80
|
%
|
||||
Total interest-bearing liabilities
|
1,088,077
|
|
|
$
|
5,058
|
|
|
0.94
|
%
|
|
1,038,893
|
|
|
$
|
3,464
|
|
|
0.66
|
%
|
||
Noninterest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing deposits
|
558,593
|
|
|
|
|
|
|
525,653
|
|
|
|
|
|
||||||||
Accrued interest and other liabilities
|
15,589
|
|
|
|
|
|
|
9,225
|
|
|
|
|
|
||||||||
Total noninterest-bearing liabilities:
|
574,182
|
|
|
|
|
|
|
534,878
|
|
|
|
|
|
||||||||
Stockholders’ equity
|
210,860
|
|
|
|
|
|
|
180,506
|
|
|
|
|
|
||||||||
Total liabilities and stockholders’ equity
|
$
|
1,873,119
|
|
|
|
|
|
|
$
|
1,754,277
|
|
|
|
|
|
||||||
Net interest income
|
|
|
$
|
31,103
|
|
|
|
|
|
|
$
|
28,476
|
|
|
|
||||||
Net interest spread
|
|
|
|
|
3.10
|
%
|
|
|
|
|
|
3.13
|
%
|
||||||||
Net interest margin
|
|
|
|
|
3.47
|
%
|
|
|
|
|
|
3.37
|
%
|
||||||||
Net interest margin FTE(2)
|
|
|
|
|
3.52
|
%
|
|
|
|
|
|
3.42
|
%
|
||||||||
Cost of deposits
|
|
|
|
|
0.59
|
%
|
|
|
|
|
|
0.42
|
%
|
||||||||
Cost of funds
|
|
|
|
|
0.57
|
%
|
|
|
|
|
|
0.42
|
%
|
(1)
|
Includes average outstanding balances of loans HFS of $3.1 million and $2.7 million for the six months ended June 30, 2019 and 2018, respectively.
|
(2)
|
Net interest margin FTE includes an FTE adjustment using a 21% federal income tax rate on tax-exempt securities and tax-exempt loans.
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||||||||||
|
June 30, 2019 vs 2018
|
|
June 30, 2019 vs 2018
|
||||||||||||||||||||
|
Increase (Decrease)
Due to Change in |
|
Total
Increase |
|
Increase (Decrease)
Due to Change in |
|
Total
Increase |
||||||||||||||||
|
Volume
|
|
Rate
|
|
(Decrease)
|
|
Volume
|
|
Rate
|
|
(Decrease)
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans
|
$
|
709
|
|
|
$
|
801
|
|
|
$
|
1,510
|
|
|
$
|
1,614
|
|
|
$
|
1,812
|
|
|
$
|
3,426
|
|
Securities - taxable
|
(179
|
)
|
|
106
|
|
|
(73
|
)
|
|
(377
|
)
|
|
213
|
|
|
(164
|
)
|
||||||
Securities - tax-exempt
|
91
|
|
|
22
|
|
|
113
|
|
|
119
|
|
|
27
|
|
|
146
|
|
||||||
Federal funds sold
|
94
|
|
|
54
|
|
|
148
|
|
|
171
|
|
|
140
|
|
|
311
|
|
||||||
Interest-bearing balances due from banks
|
99
|
|
|
88
|
|
|
187
|
|
|
263
|
|
|
233
|
|
|
496
|
|
||||||
Nonmarketable equity securities
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
4
|
|
|
4
|
|
||||||
Investment in trusts
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||||
Total interest income
|
$
|
814
|
|
|
$
|
1,073
|
|
|
$
|
1,887
|
|
|
$
|
1,790
|
|
|
$
|
2,431
|
|
|
$
|
4,221
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing transaction deposits
|
$
|
20
|
|
|
$
|
311
|
|
|
$
|
331
|
|
|
$
|
52
|
|
|
$
|
685
|
|
|
$
|
737
|
|
Time deposits
|
56
|
|
|
397
|
|
|
453
|
|
|
96
|
|
|
713
|
|
|
809
|
|
||||||
Total interest-bearing deposits
|
76
|
|
|
708
|
|
|
784
|
|
|
148
|
|
|
1,398
|
|
|
1,546
|
|
||||||
Junior subordinated debentures
|
(7
|
)
|
|
27
|
|
|
20
|
|
|
(7
|
)
|
|
59
|
|
|
52
|
|
||||||
Other borrowings
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
||||||
Total interest expense
|
$
|
67
|
|
|
$
|
735
|
|
|
$
|
802
|
|
|
$
|
137
|
|
|
$
|
1,457
|
|
|
$
|
1,594
|
|
Increase (decrease) in net interest income
|
$
|
747
|
|
|
$
|
338
|
|
|
$
|
1,085
|
|
|
$
|
1,653
|
|
|
$
|
974
|
|
|
$
|
2,627
|
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||||||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
Increase (Decrease)
|
|
2019
|
|
2018
|
|
Increase (Decrease)
|
||||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service charges on deposit accounts
|
$
|
1,083
|
|
|
$
|
1,124
|
|
|
$
|
(41
|
)
|
|
(3.6
|
)%
|
|
$
|
2,109
|
|
|
$
|
2,324
|
|
|
$
|
(215
|
)
|
|
(9.3
|
)%
|
Debit card income, net
|
785
|
|
|
764
|
|
|
21
|
|
|
2.7
|
%
|
|
1,481
|
|
|
1,468
|
|
|
13
|
|
|
0.9
|
%
|
||||||
Mortgage loan income
|
657
|
|
|
706
|
|
|
(49
|
)
|
|
(6.9
|
)%
|
|
1,171
|
|
|
1,052
|
|
|
119
|
|
|
11.3
|
%
|
||||||
Brokerage income
|
626
|
|
|
590
|
|
|
36
|
|
|
6.1
|
%
|
|
991
|
|
|
925
|
|
|
66
|
|
|
7.1
|
%
|
||||||
Loan and deposit income
|
382
|
|
|
329
|
|
|
53
|
|
|
16.1
|
%
|
|
727
|
|
|
597
|
|
|
130
|
|
|
21.8
|
%
|
||||||
Bank-owned life insurance income
|
137
|
|
|
139
|
|
|
(2
|
)
|
|
(1.4
|
)%
|
|
270
|
|
|
276
|
|
|
(6
|
)
|
|
(2.2
|
)%
|
||||||
Gain (Loss) on equity securities
|
56
|
|
|
(93
|
)
|
|
149
|
|
|
160.2
|
%
|
|
104
|
|
|
(93
|
)
|
|
197
|
|
|
211.8
|
%
|
||||||
Gain on sale of investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
41
|
|
|
(41
|
)
|
|
(100.0
|
)%
|
||||||
Other income
|
373
|
|
|
106
|
|
|
267
|
|
|
251.9
|
%
|
|
542
|
|
|
233
|
|
|
309
|
|
|
132.6
|
%
|
||||||
Total Noninterest Income
|
$
|
4,099
|
|
|
$
|
3,665
|
|
|
$
|
434
|
|
|
11.8
|
%
|
|
$
|
7,395
|
|
|
$
|
6,823
|
|
|
$
|
572
|
|
|
8.4
|
%
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||||||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
Increase (Decrease)
|
|
2019
|
|
2018
|
|
Increase (Decrease)
|
||||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Personnel expenses
|
$
|
7,005
|
|
|
$
|
6,489
|
|
|
$
|
516
|
|
|
8.0
|
%
|
|
$
|
13,645
|
|
|
$
|
12,631
|
|
|
$
|
1,014
|
|
|
8.0
|
%
|
Non-staff expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Occupancy and equipment expenses
|
1,334
|
|
|
1,081
|
|
|
253
|
|
|
23.4
|
%
|
|
2,509
|
|
|
2,161
|
|
|
348
|
|
|
16.1
|
%
|
||||||
Technology expenses
|
558
|
|
|
536
|
|
|
22
|
|
|
4.1
|
%
|
|
1,101
|
|
|
1,042
|
|
|
59
|
|
|
5.7
|
%
|
||||||
Advertising
|
396
|
|
|
211
|
|
|
185
|
|
|
87.7
|
%
|
|
605
|
|
|
386
|
|
|
219
|
|
|
56.7
|
%
|
||||||
Other business development expenses
|
277
|
|
|
241
|
|
|
36
|
|
|
14.9
|
%
|
|
560
|
|
|
547
|
|
|
13
|
|
|
2.4
|
%
|
||||||
Data processing expense
|
483
|
|
|
427
|
|
|
56
|
|
|
13.1
|
%
|
|
942
|
|
|
820
|
|
|
122
|
|
|
14.9
|
%
|
||||||
Other taxes
|
455
|
|
|
349
|
|
|
106
|
|
|
30.4
|
%
|
|
808
|
|
|
691
|
|
|
117
|
|
|
16.9
|
%
|
||||||
Loan and deposit expenses
|
392
|
|
|
222
|
|
|
170
|
|
|
76.6
|
%
|
|
615
|
|
|
402
|
|
|
213
|
|
|
53.0
|
%
|
||||||
Legal and professional expenses
|
383
|
|
|
344
|
|
|
39
|
|
|
11.3
|
%
|
|
702
|
|
|
668
|
|
|
34
|
|
|
5.1
|
%
|
||||||
Other operating expenses
|
1,121
|
|
|
1,047
|
|
|
74
|
|
|
7.1
|
%
|
|
2,075
|
|
|
1,907
|
|
|
168
|
|
|
8.8
|
%
|
||||||
Total operating expenses
|
$
|
12,404
|
|
|
$
|
10,947
|
|
|
$
|
1,457
|
|
|
13.3
|
%
|
|
$
|
23,562
|
|
|
$
|
21,255
|
|
|
$
|
2,307
|
|
|
10.9
|
%
|
|
As of June 30, 2019
|
|
As of December 31, 2018
|
||||||||
|
% Change in
Net Interest Income |
|
% Change in
Fair Value of Equity |
|
% Change in
Net Interest Income |
|
% Change in
Fair Value of Equity |
||||
Change in Interest Rates (Basis Points)
|
|
|
|
|
|
|
|
||||
+300
|
17.7
|
%
|
|
9.7
|
%
|
|
19.2
|
%
|
|
7.1
|
%
|
+200
|
12.0
|
%
|
|
7.4
|
%
|
|
12.9
|
%
|
|
5.1
|
%
|
+100
|
6.1
|
%
|
|
4.2
|
%
|
|
6.6
|
%
|
|
3.0
|
%
|
Base
|
0.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
-100
|
(6.2
|
)%
|
|
(7.8
|
)%
|
|
(6.6
|
)%
|
|
(5.0
|
)%
|
-200
|
(12.0
|
)%
|
|
(20.3
|
)%
|
|
(14.6
|
)%
|
|
(13.4
|
)%
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
||||||
|
2019
|
|
2019
|
|
2018
|
||||||
|
(Dollars in thousands, except per share data)
|
||||||||||
Tangible common equity
|
|
|
|
|
|
||||||
Total stockholders' equity
|
$
|
237,911
|
|
|
$
|
202,184
|
|
|
$
|
184,047
|
|
Adjustments:
|
|
|
|
|
|
||||||
Intangible assets
|
(1,546
|
)
|
|
(1,546
|
)
|
|
(1,546
|
)
|
|||
Total tangible common equity
|
$
|
236,365
|
|
|
$
|
200,638
|
|
|
$
|
182,501
|
|
Common shares outstanding(1)
|
7,300,246
|
|
|
6,636,926
|
|
|
6,725,598
|
|
|||
Book value per common share
|
$
|
32.59
|
|
|
$
|
30.46
|
|
|
$
|
27.37
|
|
Tangible book value per common share
|
$
|
32.38
|
|
|
$
|
30.23
|
|
|
$
|
27.14
|
|
|
|
|
|
|
|
||||||
Tangible assets
|
|
|
|
|
|
||||||
Total assets
|
$
|
1,892,918
|
|
|
$
|
1,922,118
|
|
|
$
|
1,764,768
|
|
Adjustments:
|
|
|
|
|
|
||||||
Intangible assets
|
(1,546
|
)
|
|
(1,546
|
)
|
|
(1,546
|
)
|
|||
Total tangible assets
|
$
|
1,891,372
|
|
|
$
|
1,920,572
|
|
|
$
|
1,763,222
|
|
Total stockholder's equity to assets
|
12.57
|
%
|
|
10.52
|
%
|
|
10.43
|
%
|
|||
Tangible common equity to tangible assets
|
12.50
|
%
|
|
10.45
|
%
|
|
10.35
|
%
|
(1)
|
June 30, 2018 amount adjusted to give effect to the 2018 2-for-1 stock split.
|
Item 6.
|
Exhibits and Financial Statement Schedules
|
|
|
|
|
RED RIVER BANCSHARES, INC.
|
|
|
|
|
Date: August 14, 2019
|
By:
|
/s/ R. Blake Chatelain
|
|
|
R. Blake Chatelain
|
|
|
President and Chief Executive Officer
|
|
|
|
Date: August 14, 2019
|
By:
|
/s/ Isabel V. Carriere
|
|
|
Isabel V. Carriere, CPA, CGMA
|
|
|
Executive Vice-President, Treasurer, Chief Financial Officer, and Assistant Secretary
|
|
|
Exhibit 10.1
|
Participant Name
|
|
Date of Grant:
|
|
and Address:
|
|
Number of “Restricted Shares”:
|
|
|
|
Vesting Commencement Date:
|
|
Vesting Date
|
Vesting Percentage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 31.1
|
(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 subsidiary, 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.
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: August 14, 2019
|
By:
|
/s/ R. Blake Chatelain
|
|
|
|
R. Blake Chatelain
|
|
|
|
President and Chief Executive Officer
|
|
|
|
Exhibit 31.2
|
(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 subsidiary, 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.
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: August 14, 2019
|
By:
|
/s/ Isabel V. Carriere
|
|
|
Isabel V. Carriere, CPA, CGMA
|
|
|
Executive Vice-President, Treasurer, Chief Financial Officer, and Assistant Secretary
|
|
|
Exhibit 32.1
|
Date: August 14, 2019
|
By:
|
/s/ R. Blake Chatelain
|
|
|
|
R. Blake Chatelain
|
|
|
|
President and Chief Executive Officer
|
|
|
|
Exhibit 32.2
|
Date: August 14, 2019
|
By:
|
/s/ Isabel V. Carriere
|
|
|
|
Isabel V. Carriere, CPA, CGMA
|
|
|
|
Executive Vice-President, Treasurer, Chief Financial Officer, and Assistant Secretary
|
|