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☒
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Red River Bancshares, Inc.
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(Exact name of registrant as specified in its charter)
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Louisiana
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72-1412058
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(State or Other Jurisdiction of Incorporation or Organization)
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(I.R.S. Employer Identification Number)
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1412 Centre Court Drive, Suite 501,
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Alexandria,
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Louisiana
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71301
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(Address of Principal Executive Offices)
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(Zip Code)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, no par value
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RRBI
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The Nasdaq Stock Market, LLC
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Large accelerated filer
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o
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Accelerated filer
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o
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Non-accelerated filer
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o
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Smaller reporting company
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☒
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Emerging growth company
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☒
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Page
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ABBREVIATION OR ACRONYM
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DEFINITION
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2018 2-for-1 stock split
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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.
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ACH
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Automated clearing house
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AFS
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Available-for-sale
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AOCI
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Accumulated other comprehensive income or loss
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ASC
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Accounting Standards Codification
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ASU
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Accounting Standards Update
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Basel III
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Basel Committee's 2010 Regulatory Capital Framework (Third Accord)
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BOLI
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Bank-owned life insurance
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bp(s)
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Basis point(s)
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CBLR
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Community bank leverage ratio
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CCB
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Capital conservation buffer
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CECL
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Current Expected Credit Losses, related to ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments
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CFPB
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Consumer Financial Protection Bureau
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CRA
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Community Reinvestment Act
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Director Compensation Program
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Compensation program which allows directors of the Company and the Bank an opportunity to select how to receive their annual director fees.
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Dodd-Frank Act
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Dodd-Frank and Wall Street Consumer Protection Act of 2010
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Economic Growth Act
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Economic Growth, Regulatory Relief, and Consumer Protection Act
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EPS
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Earnings per share
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Exchange Act
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Securities Exchange Act of 1934, as amended
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FASB
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Financial Accounting Standards Board
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FBT CT I
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FBT Capital Trust I, a Delaware statutory trust
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FDIA
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Federal Deposit Insurance Act
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FDIC
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Federal Deposit Insurance Corporation
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Federal Reserve
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Board of Governors of the Federal Reserve System
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FHA
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United States Federal Housing Administration
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FHLB
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Federal Home Loan Bank of Dallas
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FTE
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Fully taxable equivalent basis
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GAAP
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Generally Accepted Accounting Principles in the United States of America
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HFI
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Held for investment
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HFS
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Held for sale
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HTM
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Held-to-maturity
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IPO
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Initial public offering
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JOBS Act
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Jumpstart Our Business Startups Act of 2012
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LIBOR
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London Interbank Offered Rate
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LPO
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Loan production office
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MSA
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Metropolitan statistical area
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NOW
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Negotiable order of withdrawal
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ABBREVIATION OR ACRONYM
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DEFINITION
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NPA(s)
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Nonperforming asset(s)
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OFAC
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Office of Foreign Assets Control
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OFI
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Office of Financial Institutions
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OREO
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Other real estate owned
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OTTI
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Other-than-temporary impairment
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SBIC
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Small Business Investment Company
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Securities Act
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Securities Act of 1933, as amended
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SEC
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Securities and Exchange Commission
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Source BIDCO
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Source Business and Industrial Development Company, LLC
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Tax Reform Act
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Tax Cuts and Jobs Act of 2017
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TDR(s)
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Troubled debt restructuring(s)
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Trust II
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Red River Statutory Trust II, a Connecticut statutory trust
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Trust III
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Red River Statutory Trust III, a Delaware statutory trust
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USD
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United States dollar
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VA
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United States Department of Veterans Affairs
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•
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business and economic conditions generally and in the financial services industry, nationally and within our local market areas;
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•
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government intervention in the U.S. financial system;
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•
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changes in management personnel;
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•
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increased competition in the financial services industry, particularly from regional and national institutions;
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•
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volatility and direction of market interest rates;
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•
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our ability to maintain important deposit customer relationships, our reputation, or to otherwise avoid liquidity risks;
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•
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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;
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•
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changes in the value of collateral securing our loans;
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•
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risks associated with system failures or failures to protect against cybersecurity threats, such as breaches of our network security;
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•
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deterioration of our asset quality;
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•
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the adequacy of our reserves, including our allowance for loan losses;
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•
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operational risks associated with our business;
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•
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natural disasters and adverse weather, acts of terrorism, pandemics, an outbreak of hostilities or other international or domestic calamities, and other matters beyond our control;
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•
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our ability to prudently manage our growth and execute our strategy;
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•
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compliance with the extensive regulatory framework that applies to us;
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•
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uncertainty regarding the future of LIBOR and the impact of any replacement alternatives on our business;
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•
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changes in the laws, rules, regulations, interpretations, or policies relating to financial institution, accounting, tax, trade, monetary, and fiscal matters;
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•
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the impact of recent and future legislative and regulatory changes, including the Tax Reform Act, the Economic Growth Act, and other changes in banking, securities, accounting, and tax laws and regulations, and their application by our regulators; and
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•
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other risks and uncertainties listed from time to time in our reports and documents filed with the SEC.
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December 31,
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||||||||
(in thousands)
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2019
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2018
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2017
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2016
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2015
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Real estate:
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Commercial real estate
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$531,990
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$454,689
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$412,355
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$393,351
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$379,841
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One-to-four family residential
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420,020
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406,963
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375,536
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337,926
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298,234
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Construction and development
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132,461
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102,868
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84,812
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77,155
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68,789
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Commercial and industrial
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267,940
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275,881
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284,035
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248,448
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206,868
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Tax-exempt
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56,494
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60,104
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62,776
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61,819
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51,816
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Consumer
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30,019
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27,933
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28,152
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27,976
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27,049
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Total loans HFI
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$1,438,924
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$1,328,438
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$1,247,666
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$1,146,675
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$1,032,597
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Total loans HFS
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$5,089
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$2,904
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$1,867
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$3,146
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$3,604
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•
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actual or anticipated fluctuations in our operating results, financial condition, or asset quality;
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•
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changes in economic or business conditions;
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•
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the effects of, and changes in, trade, monetary and fiscal policies, including the interest rate policies of the Federal Reserve, or in laws or regulations affecting us;
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•
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the public reaction to our press releases, our other public announcements, and our filings with the SEC;
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•
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changes in accounting standards, policies, guidance, interpretations, or principles;
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•
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the number of securities analysts covering us;
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•
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publication of research reports about us, our competitors, or the financial services industry generally, or changes in, or failure to meet, securities analysts’ estimates of our financial and operating performance, or lack of research reports by industry analysts or ceasing of coverage;
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•
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changes in market valuations or earnings of companies that investors deem comparable to us;
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•
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the trading volume of our common stock;
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•
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future issuances of our common stock or other securities;
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•
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future sales of our common stock by us or our directors, executive officers, or significant shareholders;
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•
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additions or departures of key personnel;
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•
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perceptions in the marketplace regarding our competitors and us;
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•
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significant acquisitions or business combinations, strategic partnerships, joint ventures, or capital commitments by or involving our competitors or us;
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•
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other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products, and services; and
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•
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other news, announcements, or disclosures (whether by us or others) related to us, our competitors, our core market, or the financial services industry.
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•
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enable our board of directors to issue additional shares of authorized, but unissued capital stock;
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•
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do not provide preemptive rights to our shareholders;
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•
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enable our board of directors to issue “blank check” preferred stock with such designations, rights, and preferences as may be determined from time to time by the board;
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•
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enable our board of directors to increase the size of the board and fill the vacancies created by the increase;
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•
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do not provide for cumulative voting in the election of directors;
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•
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enable our board of directors to amend our bylaws without shareholder approval;
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•
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require the request of holders of at least 25% of the outstanding shares of our capital stock entitled to vote at a meeting to call a special shareholders’ meeting;
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•
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establish an advance notice procedure for director nominations and other shareholder proposals; and
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•
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require prior regulatory application and approval of any transaction involving control of our organization.
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Banking Center Name
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Street Address
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City & State
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Own/Lease
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Central Louisiana market
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Jackson Street Banking Center
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1412 Centre Court Drive
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Alexandria, LA
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Own
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Downtown Banking Center
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600 Jackson Street
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Alexandria, LA
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Own
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Highway 28 West Banking Center
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5631 Coliseum Boulevard
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Alexandria, LA
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Own
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North Mall Banking Center
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3422 North Boulevard
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Alexandria, LA
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Lease
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North Rapides Banking Center
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4425 Monroe Highway
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Ball, LA
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Lease
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Forest Hill Banking Center
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4292 Highway 112
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Forest Hill, LA
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Own
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Lecompte Banking Center
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1210 Wall Street
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Lecompte, LA
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Own
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Marksville Banking Center
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447 East Tunica Drive
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Marksville, LA
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Own
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Pineville Banking Center
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3120 Highway 28 East
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Pineville, LA
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Lease
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Northwest Louisiana market
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East Texas Banking Center
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2931 East Texas Street
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Bossier City, LA
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Own
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Airline Banking Center
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3300 Airline Drive
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Bossier City, LA
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Own
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Market Street Banking Center
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601 Market Street
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Shreveport, LA
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Lease
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East Kings Banking Center
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1753 East 70th Street
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Shreveport, LA
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Own
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Provenance Banking Center
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1020 Bridgewater Avenue
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Shreveport, LA
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Own
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Uptown Banking Center
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5868 Line Avenue
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Shreveport, LA
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Lease
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Stonewall Banking Center
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571 Highway 171
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Stonewall, LA
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Own
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Southeast Louisiana market
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Old Hammond Highway Banking Center
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9400 Old Hammond Highway
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Baton Rouge, LA
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Own
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Central Banking Center
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14545 Wax Road
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Baton Rouge, LA
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Own
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Jones Creek Banking Center
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5350 Jones Creek Road
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Baton Rouge, LA
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Own
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Essen Lane Banking Center
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5063 Essen Lane
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Baton Rouge, LA
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Own
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South Acadian Thruway Banking Center
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2591 South Acadian Thruway
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Baton Rouge, LA
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Own
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Dutchtown Banking Center
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12509 Highway 73
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Geismar, LA
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Own
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Southwest Louisiana market
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Lake Street Banking Center
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4112 Lake Street
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Lake Charles, LA
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Lease
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Northshore Louisiana market
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Covington Banking Center
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70561 Highway 21
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Covington, LA
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Own
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As of and for the Years Ended December 31,
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||||||||||||||||||
(in thousands)
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2019
|
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2018
|
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2017
|
|
2016
|
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2015
|
||||||||||
Selected Period End Balance Sheet Data:
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|
||||||||||
Total assets
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$
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1,988,225
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|
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$
|
1,860,588
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|
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$
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1,724,264
|
|
|
$
|
1,644,877
|
|
|
$
|
1,492,702
|
|
Cash and due from banks
|
25,937
|
|
|
34,070
|
|
|
29,819
|
|
|
27,588
|
|
|
19,297
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|
|||||
Interest-bearing deposits in other banks
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107,355
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|
|
117,836
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|
|
29,848
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|
|
92,921
|
|
|
72,946
|
|
|||||
Securities available-for-sale
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335,573
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|
|
307,877
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|
|
345,344
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|
|
304,766
|
|
|
294,885
|
|
|||||
Securities held-to-maturity
|
—
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|
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—
|
|
|
8,991
|
|
|
10,193
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|
|
11,310
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|
|||||
Loans held for sale
|
5,089
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|
|
2,904
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|
|
1,867
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|
|
3,146
|
|
|
3,604
|
|
|||||
Loans held for investment
|
1,438,924
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|
|
1,328,438
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|
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1,247,666
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|
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1,146,675
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|
|
1,032,597
|
|
|||||
Allowance for loan losses
|
13,937
|
|
|
12,524
|
|
|
10,895
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|
|
10,544
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|
|
9,511
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|
|||||
Noninterest-bearing deposits
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584,915
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|
|
547,880
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|
|
504,286
|
|
|
475,164
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|
|
394,672
|
|
|||||
Interest-bearing deposits
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1,136,205
|
|
|
1,097,703
|
|
|
1,021,699
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|
|
997,725
|
|
|
936,129
|
|
|||||
Total deposits
|
1,721,120
|
|
|
1,645,583
|
|
|
1,525,985
|
|
|
1,472,889
|
|
|
1,330,801
|
|
|||||
Junior subordinated debentures
|
—
|
|
|
11,341
|
|
|
11,341
|
|
|
11,341
|
|
|
11,341
|
|
|||||
Total stockholders’ equity
|
251,898
|
|
|
193,703
|
|
|
178,103
|
|
|
151,823
|
|
|
142,380
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Selected Income Statement Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and dividend income
|
$
|
73,725
|
|
|
$
|
66,886
|
|
|
$
|
58,405
|
|
|
$
|
54,256
|
|
|
$
|
50,383
|
|
Interest expense
|
10,086
|
|
|
7,649
|
|
|
6,560
|
|
|
6,430
|
|
|
6,271
|
|
|||||
Net interest income
|
63,639
|
|
|
59,237
|
|
|
51,845
|
|
|
47,826
|
|
|
44,112
|
|
|||||
Provision for loan losses
|
1,810
|
|
|
1,990
|
|
|
1,555
|
|
|
1,658
|
|
|
946
|
|
|||||
Noninterest income
|
15,970
|
|
|
14,531
|
|
|
12,714
|
|
|
12,902
|
|
|
11,736
|
|
|||||
Operating expenses
|
47,335
|
|
|
43,422
|
|
|
40,473
|
|
|
38,361
|
|
|
36,294
|
|
|||||
Income before income tax expense
|
30,464
|
|
|
28,356
|
|
|
22,531
|
|
|
20,709
|
|
|
18,608
|
|
|||||
Income tax expense
|
5,640
|
|
|
5,300
|
|
|
8,546
|
|
|
5,607
|
|
|
4,652
|
|
|||||
Net income
|
$
|
24,824
|
|
|
$
|
23,056
|
|
|
$
|
13,985
|
|
|
$
|
15,102
|
|
|
$
|
13,956
|
|
Common stock cash dividends
|
$
|
1,326
|
|
|
$
|
1,009
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
As of and for the Years Ended December 31,
|
||||||||||||||||||
(dollars in thousands, except per share data)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Per Common Share Data: (1)
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per share, basic
|
$
|
3.51
|
|
|
$
|
3.43
|
|
|
$
|
2.16
|
|
|
$
|
2.37
|
|
|
$
|
2.19
|
|
Earnings per share, diluted
|
$
|
3.49
|
|
|
$
|
3.41
|
|
|
$
|
2.14
|
|
|
2.35
|
|
|
2.17
|
|
||
Book value per share
|
$
|
34.48
|
|
|
$
|
29.23
|
|
|
$
|
26.50
|
|
|
23.86
|
|
|
22.28
|
|
||
Tangible book value per share(2)
|
$
|
34.27
|
|
|
$
|
28.99
|
|
|
$
|
26.27
|
|
|
23.62
|
|
|
22.03
|
|
||
Cash dividends per share
|
$
|
0.20
|
|
|
$
|
0.15
|
|
|
$
|
—
|
|
|
—
|
|
|
—
|
|
||
Weighted average shares outstanding, basic
|
7,072,689
|
|
|
6,716,943
|
|
|
6,483,958
|
|
|
6,378,568
|
|
|
6,382,411
|
|
|||||
Weighted average shares outstanding, diluted
|
7,115,514
|
|
|
6,756,102
|
|
|
6,526,828
|
|
|
6,416,708
|
|
|
6,417,083
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Summary Performance Ratios:
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets
|
1.30
|
%
|
|
1.29
|
%
|
|
0.82
|
%
|
|
0.95
|
%
|
|
0.95
|
%
|
|||||
Return on average equity
|
10.86
|
%
|
|
12.46
|
%
|
|
8.45
|
%
|
|
10.09
|
%
|
|
10.27
|
%
|
|||||
Net interest margin
|
3.47
|
%
|
|
3.42
|
%
|
|
3.14
|
%
|
|
3.11
|
%
|
|
3.13
|
%
|
|||||
Net interest margin (FTE)(3)
|
3.52
|
%
|
|
3.44
|
%
|
|
3.20
|
%
|
|
3.21
|
%
|
|
3.23
|
%
|
|||||
Efficiency ratio(4)
|
59.46
|
%
|
|
58.86
|
%
|
|
62.69
|
%
|
|
63.17
|
%
|
|
64.99
|
%
|
|||||
Loans HFI to deposits ratio
|
83.60
|
%
|
|
80.73
|
%
|
|
81.76
|
%
|
|
77.85
|
%
|
|
77.59
|
%
|
|||||
Noninterest-bearing deposits to deposits ratio
|
33.98
|
%
|
|
33.29
|
%
|
|
33.05
|
%
|
|
32.26
|
%
|
|
29.66
|
%
|
|||||
Noninterest income to average assets
|
0.84
|
%
|
|
0.81
|
%
|
|
0.74
|
%
|
|
0.81
|
%
|
|
0.80
|
%
|
|||||
Operating expense to average assets
|
2.49
|
%
|
|
2.43
|
%
|
|
2.37
|
%
|
|
2.42
|
%
|
|
2.47
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Summary Credit Quality Ratios:
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonperforming assets to total assets
|
0.33
|
%
|
|
0.38
|
%
|
|
0.60
|
%
|
|
0.36
|
%
|
|
0.42
|
%
|
|||||
Nonperforming loans to loans HFI
|
0.37
|
%
|
|
0.49
|
%
|
|
0.83
|
%
|
|
0.49
|
%
|
|
0.57
|
%
|
|||||
Allowance for loan losses to loans HFI
|
0.97
|
%
|
|
0.94
|
%
|
|
0.87
|
%
|
|
0.92
|
%
|
|
0.92
|
%
|
|||||
Net charge-offs to average loans
|
0.03
|
%
|
|
0.03
|
%
|
|
0.10
|
%
|
|
0.06
|
%
|
|
0.02
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital Ratios:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total stockholders’ equity to total assets
|
12.67
|
%
|
|
10.41
|
%
|
|
10.33
|
%
|
|
9.23
|
%
|
|
9.54
|
%
|
|||||
Tangible common equity to tangible assets(5)
|
12.60
|
%
|
|
10.34
|
%
|
|
10.25
|
%
|
|
9.14
|
%
|
|
9.44
|
%
|
|||||
Total risk-based capital to risk-weighted assets
|
18.02
|
%
|
|
16.55
|
%
|
|
15.91
|
%
|
|
14.56
|
%
|
|
14.73
|
%
|
|||||
Tier 1 risk-based capital to risk-weighted assets
|
17.07
|
%
|
|
15.62
|
%
|
|
15.06
|
%
|
|
13.69
|
%
|
|
13.86
|
%
|
|||||
Common equity Tier 1 capital to risk-weighted assets
|
17.07
|
%
|
|
14.80
|
%
|
|
14.20
|
%
|
|
12.78
|
%
|
|
12.85
|
%
|
|||||
Tier 1 risk-based capital to average assets
|
12.82
|
%
|
|
11.40
|
%
|
|
11.21
|
%
|
|
10.04
|
%
|
|
10.12
|
%
|
(1)
|
2017, 2016, and 2015 amounts adjusted to give effect to the 2018 2-for-1 stock split.
|
(2)
|
We calculate tangible book value per common share as total stockholders’ equity, less intangible assets, divided by the outstanding number of shares of our common stock at the end of the relevant period.
|
(3)
|
Net interest margin FTE includes an FTE adjustment using a 21% federal income tax rate for 2019 and 2018, and a 35% tax rate for 2017, 2016, and 2015 on tax-exempt securities and tax-exempt loans.
|
(4)
|
Efficiency ratio represents operating expense divided by the sum of net interest income and noninterest income.
|
(5)
|
We calculate tangible common equity as total stockholders’ equity, less intangible assets, net of accumulated amortization, and we calculate tangible assets as total assets, less intangible assets, net of accumulated amortization.
|
•
|
January 2019 marked the 20th anniversary of Red River Bank providing banking services in Louisiana.
|
•
|
In May 2019, we completed an IPO of our common stock and the stock began trading on the Nasdaq Global Select Market under the trading symbol "RRBI."
|
•
|
In June 2019, our stock was selected to be included in the Russell 2000 Index.
|
•
|
As planned, in June and August 2019, a portion of the proceeds from the May 2019 IPO were used to redeem all of our junior subordinated debentures and the associated business trusts were terminated.
|
•
|
We expanded organically throughout Louisiana with the following events:
|
◦
|
Opened a new market headquarters building in the Southeast market in the first quarter of 2019.
|
◦
|
Entered into a new market, the Northshore, located on the north shore of Lake Pontchartrain, near New Orleans, Louisiana. In the Northshore, we operated from a temporary LPO until a full service banking center was opened in the third quarter of 2019.
|
◦
|
Purchased a banking center location in the Southwest market in the fourth quarter of 2019. On March 23, 2020, we opened a full-service banking center at this location in Sulphur, Louisiana.
|
◦
|
Hired experienced and knowledgeable bankers in our Southwest and Northshore markets.
|
•
|
We expanded our treasury management team, products, and services.
|
•
|
Net income for the year ended December 31, 2019, was $24.8 million, or $3.49 diluted EPS, an increase of $1.8 million, or 7.7%, compared to $23.1 million, or $3.41 diluted EPS, for the year ended December 31, 2018.
|
•
|
Assets increased 6.9% to $1.99 billion as of December 31, 2019, compared to $1.86 billion as of December 31, 2018.
|
•
|
The return on average assets was 1.30% for 2019 and 1.29% for 2018.
|
•
|
The return on average equity decreased to 10.86% for 2019 from 12.46% for 2018. This decrease is primarily due to the addition of $26.8 million of net proceeds from the IPO to equity.
|
•
|
The 2019 net interest margin FTE was impacted by the changing interest rate environment and the redemption of the junior subordinated debentures. Net interest margin FTE increased to 3.52% for 2019 from 3.44% for 2018.
|
•
|
Loans HFI increased 8.3% and deposits increased 4.6% compared to December 31, 2018.
|
•
|
As of December 31, 2019, the loans HFI to deposits ratio was 83.60%, and the noninterest-bearing deposits to total deposits ratio was 33.98%.
|
•
|
The nonperforming assets to total assets ratio improved to 0.33% as of December 31, 2019, from 0.38% as of December 31, 2018.
|
•
|
The net charge-offs to average loans ratio for the year ended December 31, 2019 was 0.03%.
|
|
For the Years Ended December 31,
|
|||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||||||||||||||
(dollars in thousands)
|
Average
Balance
Outstanding
|
|
Interest
Earned/ Interest Paid |
|
Average
Yield/ Rate |
|
Average
Balance
Outstanding
|
|
Interest
Earned/ Interest Paid |
|
Average
Yield/
Rate
|
|
Average
Balance Outstanding |
|
Interest
Earned/ Interest Paid |
|
Average
Yield/ Rate |
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans(1,2)
|
$
|
1,388,702
|
|
|
$
|
64,570
|
|
|
4.59
|
%
|
|
$
|
1,312,078
|
|
|
$
|
58,747
|
|
|
4.42
|
%
|
|
$
|
1,184,523
|
|
|
$
|
50,608
|
|
|
4.22
|
%
|
Securities - taxable
|
257,090
|
|
|
5,466
|
|
|
2.13
|
%
|
|
277,337
|
|
|
5,624
|
|
|
2.03
|
%
|
|
297,960
|
|
|
5,352
|
|
|
1.80
|
%
|
||||||
Securities - tax-exempt
|
75,385
|
|
|
1,775
|
|
|
2.35
|
%
|
|
57,776
|
|
|
1,327
|
|
|
2.30
|
%
|
|
69,702
|
|
|
1,711
|
|
|
2.45
|
%
|
||||||
Federal funds sold
|
34,637
|
|
|
753
|
|
|
2.14
|
%
|
|
17,790
|
|
|
356
|
|
|
1.97
|
%
|
|
10,945
|
|
|
122
|
|
|
1.10
|
%
|
||||||
Interest-bearing balances due from banks
|
51,694
|
|
|
1,127
|
|
|
2.15
|
%
|
|
40,768
|
|
|
798
|
|
|
1.93
|
%
|
|
62,238
|
|
|
584
|
|
|
0.93
|
%
|
||||||
Nonmarketable equity securities
|
1,330
|
|
|
23
|
|
|
1.69
|
%
|
|
1,286
|
|
|
18
|
|
|
1.36
|
%
|
|
1,253
|
|
|
14
|
|
|
1.13
|
%
|
||||||
Investment in trusts
|
181
|
|
|
11
|
|
|
6.34
|
%
|
|
341
|
|
|
16
|
|
|
4.83
|
%
|
|
341
|
|
|
14
|
|
|
4.16
|
%
|
||||||
Total interest-earning assets
|
1,809,019
|
|
|
$
|
73,725
|
|
|
4.03
|
%
|
|
1,707,376
|
|
|
$
|
66,886
|
|
|
3.86
|
%
|
|
1,626,962
|
|
|
$
|
58,405
|
|
|
3.55
|
%
|
|||
Allowance for loan losses
|
(13,444
|
)
|
|
|
|
|
|
(11,713
|
)
|
|
|
|
|
|
(11,101
|
)
|
|
|
|
|
||||||||||||
Noninterest earning assets
|
107,390
|
|
|
|
|
|
|
89,155
|
|
|
|
|
|
|
91,540
|
|
|
|
|
|
||||||||||||
Total assets
|
$
|
1,902,965
|
|
|
|
|
|
|
$
|
1,784,818
|
|
|
|
|
|
|
$
|
1,707,401
|
|
|
|
|
|
|||||||||
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing transaction deposits
|
$
|
739,554
|
|
|
$
|
3,898
|
|
|
0.53
|
%
|
|
$
|
708,818
|
|
|
$
|
2,735
|
|
|
0.39
|
%
|
|
$
|
666,367
|
|
|
$
|
1,919
|
|
|
0.29
|
%
|
Time deposits
|
335,024
|
|
|
5,803
|
|
|
1.73
|
%
|
|
320,699
|
|
|
4,349
|
|
|
1.36
|
%
|
|
338,672
|
|
|
4,165
|
|
|
1.23
|
%
|
||||||
Total interest-bearing deposits
|
1,074,578
|
|
|
9,701
|
|
|
0.90
|
%
|
|
1,029,517
|
|
|
7,084
|
|
|
0.69
|
%
|
|
1,005,039
|
|
|
6,084
|
|
|
0.61
|
%
|
||||||
Junior subordinated debentures
|
6,017
|
|
|
385
|
|
|
6.39
|
%
|
|
11,341
|
|
|
558
|
|
|
4.92
|
%
|
|
11,341
|
|
|
452
|
|
|
3.98
|
%
|
||||||
Other borrowings
|
5
|
|
|
—
|
|
|
2.80
|
%
|
|
191
|
|
|
7
|
|
|
3.66
|
%
|
|
899
|
|
|
24
|
|
|
2.66
|
%
|
||||||
Total interest-bearing liabilities
|
1,080,600
|
|
|
$
|
10,086
|
|
|
0.93
|
%
|
|
1,041,049
|
|
|
$
|
7,649
|
|
|
0.73
|
%
|
|
1,017,279
|
|
|
$
|
6,560
|
|
|
0.64
|
%
|
|||
Noninterest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Noninterest-bearing deposits
|
577,701
|
|
|
|
|
|
|
545,547
|
|
|
|
|
|
|
507,367
|
|
|
|
|
|
||||||||||||
Accrued interest and other liabilities
|
16,118
|
|
|
|
|
|
|
13,124
|
|
|
|
|
|
|
17,307
|
|
|
|
|
|
||||||||||||
Total noninterest-bearing liabilities:
|
593,819
|
|
|
|
|
|
|
558,671
|
|
|
|
|
|
|
524,674
|
|
|
|
|
|
||||||||||||
Stockholders’ equity
|
228,546
|
|
|
|
|
|
|
185,098
|
|
|
|
|
|
|
165,448
|
|
|
|
|
|
||||||||||||
Total liabilities and stockholders’ equity
|
$
|
1,902,965
|
|
|
|
|
|
|
$
|
1,784,818
|
|
|
|
|
|
|
$
|
1,707,401
|
|
|
|
|
|
|||||||||
Net interest income
|
|
|
$
|
63,639
|
|
|
|
|
|
|
$
|
59,237
|
|
|
|
|
|
|
$51,845
|
|
|
|||||||||||
Net interest spread
|
|
|
|
|
3.10
|
%
|
|
|
|
|
|
3.13
|
%
|
|
|
|
|
|
2.91%
|
|||||||||||||
Net interest margin
|
|
|
|
|
3.47
|
%
|
|
|
|
|
|
3.42
|
%
|
|
|
|
|
|
3.14%
|
|||||||||||||
Net interest margin FTE(3)
|
|
|
|
|
3.52
|
%
|
|
|
|
|
|
3.44
|
%
|
|
|
|
|
|
3.20%
|
|||||||||||||
Cost of deposits
|
|
|
|
|
0.59
|
%
|
|
|
|
|
|
0.45
|
%
|
|
|
|
|
|
0.40%
|
|||||||||||||
Cost of funds
|
|
|
|
|
0.56
|
%
|
|
|
|
|
|
0.45
|
%
|
|
|
|
|
|
0.40%
|
(1)
|
Includes average outstanding balances of loans HFS of $4.1 million, $2.9 million, and $3.3 million for the years ended December 31, 2019, 2018, and 2017, respectively.
|
(2)
|
Nonaccrual loans are included as loans carrying a zero yield.
|
(3)
|
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 Years Ended December 31,
2019 vs 2018 |
|
For the Years Ended December 31,
2018 vs 2017 |
||||||||||||||||||||
|
Increase (Decrease)
Due to Change in
|
|
Total
Increase
|
|
Increase (Decrease)
Due to Change in |
|
Total
Increase |
||||||||||||||||
(in thousands)
|
Volume
|
|
Rate
|
|
(Decrease)
|
|
Volume
|
|
Rate
|
|
(Decrease)
|
||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans
|
$
|
3,311
|
|
|
$
|
2,512
|
|
|
$
|
5,823
|
|
|
$
|
5,391
|
|
|
$
|
2,748
|
|
|
$
|
8,139
|
|
Securities - taxable
|
(353
|
)
|
|
195
|
|
|
(158
|
)
|
|
(324
|
)
|
|
596
|
|
|
272
|
|
||||||
Securities - tax-exempt
|
405
|
|
|
43
|
|
|
448
|
|
|
(314
|
)
|
|
(70
|
)
|
|
(384
|
)
|
||||||
Federal funds sold
|
332
|
|
|
65
|
|
|
397
|
|
|
78
|
|
|
156
|
|
|
234
|
|
||||||
Interest-bearing balances due from banks
|
207
|
|
|
122
|
|
|
329
|
|
|
(196
|
)
|
|
410
|
|
|
214
|
|
||||||
Nonmarketable equity securities
|
1
|
|
|
4
|
|
|
5
|
|
|
—
|
|
|
4
|
|
|
4
|
|
||||||
Investment in trusts
|
(8
|
)
|
|
3
|
|
|
(5
|
)
|
|
—
|
|
|
2
|
|
|
2
|
|
||||||
Total interest-earning assets
|
$
|
3,895
|
|
|
$
|
2,944
|
|
|
$
|
6,839
|
|
|
$
|
4,635
|
|
|
$
|
3,846
|
|
|
$
|
8,481
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing transaction deposits
|
$
|
101
|
|
|
$
|
1,062
|
|
|
$
|
1,163
|
|
|
$
|
171
|
|
|
$
|
645
|
|
|
$
|
816
|
|
Time deposits
|
209
|
|
|
1,245
|
|
|
1,454
|
|
|
(256
|
)
|
|
440
|
|
|
184
|
|
||||||
Total interest-bearing deposits
|
310
|
|
|
2,307
|
|
|
2,617
|
|
|
(85
|
)
|
|
1,085
|
|
|
1,000
|
|
||||||
Junior subordinated debentures
|
(262
|
)
|
|
89
|
|
|
(173
|
)
|
|
—
|
|
|
106
|
|
|
106
|
|
||||||
Other borrowings
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
|
(18
|
)
|
|
1
|
|
|
(17
|
)
|
||||||
Total interest-bearing liabilities
|
$
|
41
|
|
|
$
|
2,396
|
|
|
$
|
2,437
|
|
|
$
|
(103
|
)
|
|
$
|
1,192
|
|
|
$
|
1,089
|
|
Increase (decrease) in net interest income
|
$
|
3,854
|
|
|
$
|
548
|
|
|
$
|
4,402
|
|
|
$
|
4,738
|
|
|
$
|
2,654
|
|
|
$
|
7,392
|
|
|
For the Years Ended December 31,
|
|||||||||||||
(dollars in thousands)
|
2019
|
|
2018
|
|
Increase/(Decrease)
|
|||||||||
Noninterest income:
|
|
|
|
|
|
|
|
|||||||
Service charges on deposit accounts
|
$
|
4,573
|
|
|
$
|
4,582
|
|
|
$
|
(9
|
)
|
|
(0.2
|
)%
|
Debit card income, net
|
3,095
|
|
|
2,986
|
|
|
109
|
|
|
3.7
|
%
|
|||
Mortgage loan income
|
3,002
|
|
|
2,107
|
|
|
895
|
|
|
42.5
|
%
|
|||
Brokerage income
|
2,125
|
|
|
1,944
|
|
|
181
|
|
|
9.3
|
%
|
|||
Loan and deposit income
|
1,521
|
|
|
1,359
|
|
|
162
|
|
|
11.9
|
%
|
|||
Bank-owned life insurance income
|
544
|
|
|
732
|
|
|
(188
|
)
|
|
(25.7
|
)%
|
|||
Gain (Loss) on equity securities
|
115
|
|
|
(85
|
)
|
|
200
|
|
|
235.3
|
%
|
|||
Gain (Loss) on sale of securities
|
18
|
|
|
32
|
|
|
(14
|
)
|
|
(43.8
|
)%
|
|||
SBIC income
|
819
|
|
|
509
|
|
|
310
|
|
|
60.9
|
%
|
|||
Other income
|
158
|
|
|
365
|
|
|
(207
|
)
|
|
(56.7
|
)%
|
|||
Total noninterest income
|
$
|
15,970
|
|
|
$
|
14,531
|
|
|
$
|
1,439
|
|
|
9.9
|
%
|
|
For the Years Ended December 31,
|
|||||||||||||
(dollars in thousands)
|
2019
|
|
2018
|
|
Increase (Decrease)
|
|||||||||
Operating expenses:
|
|
|
|
|
|
|
|
|||||||
Personnel expenses
|
$
|
27,800
|
|
|
$
|
26,094
|
|
|
$
|
1,706
|
|
|
6.5
|
%
|
Non-staff expenses:
|
|
|
|
|
|
|
|
|||||||
Occupancy and equipment expenses
|
4,976
|
|
|
4,500
|
|
|
476
|
|
|
10.6
|
%
|
|||
Technology expenses
|
2,293
|
|
|
2,070
|
|
|
223
|
|
|
10.8
|
%
|
|||
Advertising
|
1,025
|
|
|
762
|
|
|
263
|
|
|
34.5
|
%
|
|||
Other business development expenses
|
1,107
|
|
|
1,127
|
|
|
(20
|
)
|
|
(1.8
|
)%
|
|||
Data processing expense
|
1,882
|
|
|
1,386
|
|
|
496
|
|
|
35.8
|
%
|
|||
Other taxes
|
1,579
|
|
|
1,327
|
|
|
252
|
|
|
19.0
|
%
|
|||
Loan and deposit expenses
|
1,148
|
|
|
852
|
|
|
296
|
|
|
34.7
|
%
|
|||
Legal and professional expenses
|
1,541
|
|
|
1,422
|
|
|
119
|
|
|
8.4
|
%
|
|||
Regulatory assessment expense
|
351
|
|
|
642
|
|
|
(291
|
)
|
|
(45.3
|
)%
|
|||
Other operating expenses
|
3,633
|
|
|
3,240
|
|
|
393
|
|
|
12.1
|
%
|
|||
Total operating expenses
|
$
|
47,335
|
|
|
$
|
43,422
|
|
|
$
|
3,913
|
|
|
9.0
|
%
|
|
December 31, 2019
|
||||||||||||||
(in thousands)
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair Value
|
||||||||
Securities AFS:
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities
|
$
|
236,572
|
|
|
$
|
299
|
|
|
$
|
(1,200
|
)
|
|
$
|
235,671
|
|
Municipal bonds
|
91,929
|
|
|
1,108
|
|
|
(279
|
)
|
|
92,758
|
|
||||
U.S. agency securities
|
7,102
|
|
|
46
|
|
|
(4
|
)
|
|
7,144
|
|
||||
Total Securities AFS
|
$
|
335,603
|
|
|
$
|
1,453
|
|
|
$
|
(1,483
|
)
|
|
$
|
335,573
|
|
|
December 31, 2018
|
||||||||||||||
(in thousands)
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair Value
|
||||||||
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
|
|
|
December 31, 2017
|
||||||||||||||
(in thousands)
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair Value
|
||||||||
Securities AFS:
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities
|
$
|
240,374
|
|
|
$
|
21
|
|
|
$
|
(4,492
|
)
|
|
$
|
235,903
|
|
Municipal bonds
|
67,573
|
|
|
107
|
|
|
(1,658
|
)
|
|
66,022
|
|
||||
U.S. agency securities
|
40,213
|
|
|
13
|
|
|
(713
|
)
|
|
39,513
|
|
||||
U.S. Treasury securities
|
4,000
|
|
|
—
|
|
|
(94
|
)
|
|
3,906
|
|
||||
Total Securities AFS
|
$
|
352,160
|
|
|
$
|
141
|
|
|
$
|
(6,957
|
)
|
|
$
|
345,344
|
|
Securities HTM:
|
|
|
|
|
|
|
|
||||||||
Municipal bonds
|
$
|
8,991
|
|
|
$
|
232
|
|
|
$
|
—
|
|
|
$
|
9,223
|
|
|
Contractual Maturity
|
|||||||||||||||||||||||||||||||||
|
Within
One Year
|
|
After One Year
but Within
Five Years
|
|
After Five Years
but Within
Ten Years
|
|
After
Ten Years
|
|
Total
|
|||||||||||||||||||||||||
(dollars in thousands)
|
Amount
|
|
Yield(1)
|
|
Amount
|
|
Yield(1)
|
|
Amount
|
|
Yield(1)
|
|
Amount
|
|
Yield(1)
|
|
Amount
|
|
Yield(1)
|
|||||||||||||||
Securities AFS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Mortgage-backed securities
|
$
|
1,908
|
|
|
1.83
|
%
|
|
$
|
17,935
|
|
|
1.77
|
%
|
|
$
|
29,560
|
|
|
1.98
|
%
|
|
$
|
186,268
|
|
|
2.30
|
%
|
|
$
|
235,671
|
|
|
2.22
|
%
|
Municipal bonds
|
265
|
|
|
3.57
|
%
|
|
10,993
|
|
|
2.01
|
%
|
|
35,248
|
|
|
2.71
|
%
|
|
46,252
|
|
|
3.27
|
%
|
|
92,758
|
|
|
2.91
|
%
|
|||||
U.S. agency securities
|
14
|
|
|
2.33
|
%
|
|
1,020
|
|
|
2.11
|
%
|
|
5,095
|
|
|
2.59
|
%
|
|
1,015
|
|
|
2.27
|
%
|
|
7,144
|
|
|
2.48
|
%
|
|||||
Total Securities AFS
|
$
|
2,187
|
|
|
2.04
|
%
|
|
$
|
29,948
|
|
|
1.87
|
%
|
|
$
|
69,903
|
|
|
2.39
|
%
|
|
$
|
233,535
|
|
|
2.49
|
%
|
|
$
|
335,573
|
|
|
2.41
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|||||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||
(dollars in thousands)
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|||||||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial real estate
|
$
|
531,990
|
|
|
37.0
|
%
|
|
$
|
454,689
|
|
|
34.2
|
%
|
|
$
|
412,355
|
|
|
33.0
|
%
|
|
$
|
393,351
|
|
|
34.3
|
%
|
|
$
|
379,841
|
|
|
36.8
|
%
|
One-to-four family residential
|
420,020
|
|
|
29.2
|
%
|
|
406,963
|
|
|
30.7
|
%
|
|
375,536
|
|
|
30.1
|
%
|
|
337,926
|
|
|
29.5
|
%
|
|
298,234
|
|
|
28.9
|
%
|
|||||
Construction and development
|
132,461
|
|
|
9.2
|
%
|
|
102,868
|
|
|
7.7
|
%
|
|
84,812
|
|
|
6.8
|
%
|
|
77,155
|
|
|
6.7
|
%
|
|
68,789
|
|
|
6.7
|
%
|
|||||
Commercial and industrial
|
267,940
|
|
|
18.6
|
%
|
|
275,881
|
|
|
20.8
|
%
|
|
284,035
|
|
|
22.8
|
%
|
|
248,448
|
|
|
21.7
|
%
|
|
206,868
|
|
|
20.0
|
%
|
|||||
Tax-exempt
|
56,494
|
|
|
3.9
|
%
|
|
60,104
|
|
|
4.5
|
%
|
|
62,776
|
|
|
5.0
|
%
|
|
61,819
|
|
|
5.4
|
%
|
|
51,816
|
|
|
5.0
|
%
|
|||||
Consumer
|
30,019
|
|
|
2.1
|
%
|
|
27,933
|
|
|
2.1
|
%
|
|
28,152
|
|
|
2.3
|
%
|
|
27,976
|
|
|
2.4
|
%
|
|
27,049
|
|
|
2.6
|
%
|
|||||
Total loans HFI
|
$
|
1,438,924
|
|
|
100.0
|
%
|
|
$
|
1,328,438
|
|
|
100.0
|
%
|
|
$
|
1,247,666
|
|
|
100.0
|
%
|
|
$
|
1,146,675
|
|
|
100.0
|
%
|
|
$
|
1,032,597
|
|
|
100.0
|
%
|
Total loans HFS
|
$5,089
|
|
|
|
$2,904
|
|
|
|
$1,867
|
|
|
|
$3,146
|
|
|
|
$3,604
|
|
|
|
|
Commercial Real Estate
|
|||||||||||||||||||
(dollars in thousands)
|
|
Owner Occupied
|
|
Non-Owner Occupied
|
|
Total
|
|||||||||||||||
December 31,
|
|
Amount
|
|
Percent of Loans HFI
|
|
Amount
|
|
Percent of Loans HFI
|
|
Amount
|
|
Percent of Loans HFI
|
|||||||||
2019
|
|
$
|
300,880
|
|
|
20.9
|
%
|
|
$
|
231,110
|
|
|
16.1
|
%
|
|
$
|
531,990
|
|
|
37.0
|
%
|
2018
|
|
$
|
270,083
|
|
|
20.3
|
%
|
|
$
|
184,606
|
|
|
13.9
|
%
|
|
$
|
454,689
|
|
|
34.2
|
%
|
2017
|
|
$
|
241,153
|
|
|
19.3
|
%
|
|
$
|
171,202
|
|
|
13.7
|
%
|
|
$
|
412,355
|
|
|
33.0
|
%
|
2016
|
|
$
|
223,280
|
|
|
19.5
|
%
|
|
$
|
170,071
|
|
|
14.8
|
%
|
|
$
|
393,351
|
|
|
34.3
|
%
|
2015
|
|
$
|
218,688
|
|
|
21.2
|
%
|
|
$
|
161,153
|
|
|
15.6
|
%
|
|
$
|
379,841
|
|
|
36.8
|
%
|
|
December 31, 2019
|
|
Health care
|
9.3
|
%
|
Construction
|
4.7
|
%
|
Retail trade
|
4.4
|
%
|
Investor one-to-four family and multifamily
|
4.4
|
%
|
Accommodation and food services
|
3.3
|
%
|
Religious and other nonprofit
|
2.8
|
%
|
Public administration
|
2.3
|
%
|
Energy
|
2.2
|
%
|
Finance and insurance
|
2.0
|
%
|
Manufacturing
|
1.7
|
%
|
All other
|
62.9
|
%
|
Total loans HFI by industry concentration
|
100.0
|
%
|
|
December 31, 2019
|
||||||||||||||
(dollars in thousands)
|
One Year
or Less |
|
One Through
Five Years |
|
After
Five Years |
|
Total
|
||||||||
Real estate:
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
$
|
86,369
|
|
|
$
|
312,913
|
|
|
$
|
132,708
|
|
|
$
|
531,990
|
|
One-to-four family residential
|
37,769
|
|
|
104,649
|
|
|
277,602
|
|
|
420,020
|
|
||||
Construction and development
|
79,930
|
|
|
39,824
|
|
|
12,707
|
|
|
132,461
|
|
||||
Commercial and industrial
|
116,015
|
|
|
141,132
|
|
|
10,793
|
|
|
267,940
|
|
||||
Tax-exempt
|
6,566
|
|
|
11,038
|
|
|
38,890
|
|
|
56,494
|
|
||||
Consumer
|
10,917
|
|
|
17,991
|
|
|
1,111
|
|
|
30,019
|
|
||||
Total loans HFI
|
$
|
337,566
|
|
|
$
|
627,547
|
|
|
$
|
473,811
|
|
|
$
|
1,438,924
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed rate amount
|
$
|
182,885
|
|
|
$
|
562,466
|
|
|
$
|
466,637
|
|
|
$
|
1,211,988
|
|
Fixed rate percent
|
12.7
|
%
|
|
39.1
|
%
|
|
32.4
|
%
|
|
84.2
|
%
|
||||
Variable rate amount
|
$
|
154,681
|
|
|
$
|
65,081
|
|
|
$
|
7,174
|
|
|
$
|
226,936
|
|
Variable rate percent
|
10.8
|
%
|
|
4.5
|
%
|
|
0.5
|
%
|
|
15.8
|
%
|
|
December 31,
|
||||||||||||||||||
(dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Nonperforming loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonaccrual loans
|
$
|
5,319
|
|
|
$
|
5,560
|
|
|
$
|
9,444
|
|
|
$
|
5,608
|
|
|
$
|
5,550
|
|
Accruing loans 90 or more days past due
|
—
|
|
|
939
|
|
|
942
|
|
|
14
|
|
|
304
|
|
|||||
Total nonperforming loans
|
5,319
|
|
|
6,499
|
|
|
10,386
|
|
|
5,622
|
|
|
5,854
|
|
|||||
Foreclosed assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
1,128
|
|
|
646
|
|
|
23
|
|
|
346
|
|
|
455
|
|
|||||
Other
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total foreclosed assets
|
1,146
|
|
|
646
|
|
|
23
|
|
|
346
|
|
|
455
|
|
|||||
Total NPAs
|
$
|
6,465
|
|
|
$
|
7,145
|
|
|
$
|
10,409
|
|
|
$
|
5,968
|
|
|
$
|
6,309
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Troubled debt restructurings:(1)
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonaccrual loans
|
$
|
3,185
|
|
|
$
|
3,540
|
|
|
$
|
4,497
|
|
|
$
|
1,124
|
|
|
$
|
1,580
|
|
Accruing loans 90 or more days past due
|
—
|
|
|
—
|
|
|
792
|
|
|
—
|
|
|
—
|
|
|||||
Performing loans
|
1,695
|
|
|
1,572
|
|
|
2,002
|
|
|
3,932
|
|
|
2,036
|
|
|||||
Total TDRs
|
$
|
4,880
|
|
|
$
|
5,112
|
|
|
$
|
7,291
|
|
|
$
|
5,056
|
|
|
$
|
3,616
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonperforming loans to loans HFI(1)
|
0.37
|
%
|
|
0.49
|
%
|
|
0.83
|
%
|
|
0.49
|
%
|
|
0.57
|
%
|
|||||
NPAs to total assets
|
0.33
|
%
|
|
0.38
|
%
|
|
0.60
|
%
|
|
0.36
|
%
|
|
0.42
|
%
|
(1)
|
Troubled debt restructurings – nonaccrual and accruing loans 90 or more days past due are included in the respective components of nonperforming loans.
|
|
December 31,
|
||||||||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
$
|
1,278
|
|
|
$
|
1,362
|
|
|
$
|
1,171
|
|
|
$
|
920
|
|
|
$
|
3,697
|
|
One-to-four family residential
|
607
|
|
|
424
|
|
|
1,821
|
|
|
752
|
|
|
1,191
|
|
|||||
Construction and development
|
38
|
|
|
55
|
|
|
1,143
|
|
|
204
|
|
|
583
|
|
|||||
Commercial and industrial
|
3,370
|
|
|
3,675
|
|
|
5,288
|
|
|
3,698
|
|
|
79
|
|
|||||
Tax-exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
26
|
|
|
44
|
|
|
21
|
|
|
34
|
|
|
—
|
|
|||||
Total nonaccrual loans
|
$
|
5,319
|
|
|
$
|
5,560
|
|
|
$
|
9,444
|
|
|
$
|
5,608
|
|
|
$
|
5,550
|
|
|
December 31, 2019
|
||||||||||||||||||||||
(dollars in thousands)
|
Pass
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Total
|
||||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate
|
$
|
515,926
|
|
|
$
|
14,118
|
|
|
$
|
1,946
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
531,990
|
|
One-to-four family residential
|
416,884
|
|
|
2,021
|
|
|
1,115
|
|
|
—
|
|
|
—
|
|
|
420,020
|
|
||||||
Construction and development
|
131,185
|
|
|
565
|
|
|
711
|
|
|
—
|
|
|
—
|
|
|
132,461
|
|
||||||
Commercial and industrial
|
247,382
|
|
|
11,473
|
|
|
9,085
|
|
|
—
|
|
|
—
|
|
|
267,940
|
|
||||||
Tax-exempt
|
56,494
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56,494
|
|
||||||
Consumer
|
29,876
|
|
|
5
|
|
|
138
|
|
|
—
|
|
|
—
|
|
|
30,019
|
|
||||||
Total loans HFI
|
$
|
1,397,747
|
|
|
$
|
28,182
|
|
|
$
|
12,995
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,438,924
|
|
% of loans HFI
|
97.1
|
%
|
|
2.0
|
%
|
|
0.9
|
%
|
|
—
|
%
|
|
—
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
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.
|
|
As of and for the Years Ended December 31,
|
||||||||||||||||||
(dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Loans HFI
|
$
|
1,438,924
|
|
|
$
|
1,328,438
|
|
|
$
|
1,247,666
|
|
|
$
|
1,146,675
|
|
|
$
|
1,032,597
|
|
Average loans
|
$
|
1,388,702
|
|
|
$
|
1,312,078
|
|
|
$
|
1,184,523
|
|
|
$
|
1,091,605
|
|
|
$
|
989,239
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses at beginning of period
|
$
|
12,524
|
|
|
$
|
10,895
|
|
|
$
|
10,544
|
|
|
$
|
9,511
|
|
|
$
|
8,798
|
|
Provision for loan losses
|
1,810
|
|
|
1,990
|
|
|
1,555
|
|
|
1,658
|
|
|
946
|
|
|||||
Charge-offs:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
—
|
|
|
(27
|
)
|
|
—
|
|
|
(26
|
)
|
|
—
|
|
|||||
One-to-four family residential
|
(44
|
)
|
|
(4
|
)
|
|
(181
|
)
|
|
(240
|
)
|
|
(5
|
)
|
|||||
Construction and development
|
—
|
|
|
—
|
|
|
(101
|
)
|
|
(206
|
)
|
|
—
|
|
|||||
Commercial and industrial
|
(864
|
)
|
|
(353
|
)
|
|
(824
|
)
|
|
(32
|
)
|
|
(118
|
)
|
|||||
Consumer
|
(311
|
)
|
|
(353
|
)
|
|
(353
|
)
|
|
(281
|
)
|
|
(288
|
)
|
|||||
Total charge-offs
|
(1,219
|
)
|
|
(737
|
)
|
|
(1,459
|
)
|
|
(785
|
)
|
|
(411
|
)
|
|||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
—
|
|
|
27
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|||||
One-to-four family residential
|
5
|
|
|
187
|
|
|
73
|
|
|
13
|
|
|
31
|
|
|||||
Construction and development
|
88
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial and industrial
|
585
|
|
|
9
|
|
|
60
|
|
|
11
|
|
|
21
|
|
|||||
Consumer
|
144
|
|
|
153
|
|
|
121
|
|
|
136
|
|
|
126
|
|
|||||
Total recoveries
|
822
|
|
|
376
|
|
|
255
|
|
|
160
|
|
|
178
|
|
|||||
Net (charge-offs)/recoveries
|
(397
|
)
|
|
(361
|
)
|
|
(1,204
|
)
|
|
(625
|
)
|
|
(233
|
)
|
|||||
Allowance for loan losses at end of period
|
$
|
13,937
|
|
|
$
|
12,524
|
|
|
$
|
10,895
|
|
|
$
|
10,544
|
|
|
$
|
9,511
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses to loans HFI
|
0.97
|
%
|
|
0.94
|
%
|
|
0.87
|
%
|
|
0.92
|
%
|
|
0.92
|
%
|
|||||
Net charge-offs to average loans
|
0.03
|
%
|
|
0.03
|
%
|
|
0.10
|
%
|
|
0.06
|
%
|
|
0.02
|
%
|
|
December 31,
|
|||||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||
(dollars in thousands)
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|||||||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial real estate
|
$
|
3,454
|
|
|
24.8
|
%
|
|
$
|
3,081
|
|
|
24.6
|
%
|
|
$
|
3,270
|
|
|
30.0
|
%
|
|
$
|
3,133
|
|
|
29.7
|
%
|
|
$
|
2,857
|
|
|
30.0
|
%
|
One-to-four family residential
|
3,323
|
|
|
23.8
|
%
|
|
3,146
|
|
|
25.1
|
%
|
|
3,099
|
|
|
28.5
|
%
|
|
2,997
|
|
|
28.4
|
%
|
|
3,183
|
|
|
33.5
|
%
|
|||||
Construction and development
|
1,211
|
|
|
8.7
|
%
|
|
951
|
|
|
7.6
|
%
|
|
852
|
|
|
7.8
|
%
|
|
675
|
|
|
6.4
|
%
|
|
509
|
|
|
5.4
|
%
|
|||||
Commercial and industrial
|
5,175
|
|
|
37.1
|
%
|
|
4,604
|
|
|
36.8
|
%
|
|
2,836
|
|
|
26.0
|
%
|
|
3,005
|
|
|
28.5
|
%
|
|
2,264
|
|
|
23.8
|
%
|
|||||
Tax-exempt
|
334
|
|
|
2.4
|
%
|
|
372
|
|
|
3.0
|
%
|
|
432
|
|
|
4.0
|
%
|
|
426
|
|
|
4.1
|
%
|
|
380
|
|
|
4.0
|
%
|
|||||
Consumer
|
440
|
|
|
3.2
|
%
|
|
370
|
|
|
2.9
|
%
|
|
406
|
|
|
3.7
|
%
|
|
308
|
|
|
2.9
|
%
|
|
318
|
|
|
3.3
|
%
|
|||||
Total allowance for loan losses
|
$
|
13,937
|
|
|
100.0
|
%
|
|
$
|
12,524
|
|
|
100.0
|
%
|
|
$
|
10,895
|
|
|
100.0
|
%
|
|
$
|
10,544
|
|
|
100.0
|
%
|
|
$
|
9,511
|
|
|
100.0
|
%
|
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2017
|
|||||||||||||||
(dollars in thousands)
|
Balance
|
|
% of Total
|
|
Balance
|
|
% of Total
|
|
Balance
|
|
% of Total
|
|||||||||
Noninterest-bearing demand deposits
|
$
|
584,915
|
|
|
34.0
|
%
|
|
$
|
547,880
|
|
|
33.3
|
%
|
|
$
|
504,286
|
|
|
33.0
|
%
|
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
NOW accounts
|
331,374
|
|
|
19.2
|
%
|
|
304,545
|
|
|
18.5
|
%
|
|
255,309
|
|
|
16.7
|
%
|
|||
Money market deposits
|
367,689
|
|
|
21.4
|
%
|
|
358,575
|
|
|
21.8
|
%
|
|
351,217
|
|
|
23.0
|
%
|
|||
Savings accounts
|
103,984
|
|
|
6.0
|
%
|
|
104,355
|
|
|
6.3
|
%
|
|
95,336
|
|
|
6.3
|
%
|
|||
Time deposits < $100,000
|
110,636
|
|
|
6.4
|
%
|
|
119,637
|
|
|
7.3
|
%
|
|
127,726
|
|
|
8.4
|
%
|
|||
Time deposits $100,000 to $250,000
|
131,957
|
|
|
7.7
|
%
|
|
128,637
|
|
|
7.8
|
%
|
|
129,321
|
|
|
8.5
|
%
|
|||
Time deposits > $250,000
|
90,565
|
|
|
5.3
|
%
|
|
81,954
|
|
|
5.0
|
%
|
|
62,790
|
|
|
4.1
|
%
|
|||
Total interest-bearing deposits
|
$
|
1,136,205
|
|
|
66.0
|
%
|
|
$
|
1,097,703
|
|
|
66.7
|
%
|
|
$
|
1,021,699
|
|
|
67.0
|
%
|
Total deposits
|
$
|
1,721,120
|
|
|
100.0
|
%
|
|
$
|
1,645,583
|
|
|
100.0
|
%
|
|
$
|
1,525,985
|
|
|
100.0
|
%
|
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2017
|
|||||||||||||||
(dollars in thousands)
|
Balance
|
|
% of Total
|
|
Balance
|
|
% of Total
|
|
Balance
|
|
% of Total
|
|||||||||
Consumer
|
$
|
895,342
|
|
|
52.0
|
%
|
|
$
|
869,725
|
|
|
52.8
|
%
|
|
$
|
836,514
|
|
|
54.8
|
%
|
Commercial
|
656,814
|
|
|
38.2
|
%
|
|
611,903
|
|
|
37.2
|
%
|
|
558,656
|
|
|
36.6
|
%
|
|||
Public
|
168,964
|
|
|
9.8
|
%
|
|
163,955
|
|
|
10.0
|
%
|
|
130,815
|
|
|
8.6
|
%
|
|||
Total deposits
|
$
|
1,721,120
|
|
|
100.0
|
%
|
|
$
|
1,645,583
|
|
|
100.0
|
%
|
|
$
|
1,525,985
|
|
|
100.0
|
%
|
|
For the Years Ended December 31,
|
|||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
(dollars in thousands)
|
Average
Balance
|
|
Average
Rate
|
|
Average
Balance
|
|
Average
Rate |
|
Average
Balance
|
|
Average
Rate |
|||||||||
Noninterest-bearing demand deposits
|
$
|
577,701
|
|
|
0.00
|
%
|
|
$
|
545,547
|
|
|
0.00
|
%
|
|
$
|
507,367
|
|
|
0.00
|
%
|
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
NOW accounts
|
277,653
|
|
|
0.47
|
%
|
|
250,865
|
|
|
0.34
|
%
|
|
231,843
|
|
|
0.17
|
%
|
|||
Money market deposits
|
356,951
|
|
|
0.70
|
%
|
|
355,354
|
|
|
0.50
|
%
|
|
343,187
|
|
|
0.42
|
%
|
|||
Savings accounts
|
104,950
|
|
|
0.11
|
%
|
|
102,599
|
|
|
0.10
|
%
|
|
91,337
|
|
|
0.10
|
%
|
|||
Time deposits
|
335,024
|
|
|
1.73
|
%
|
|
320,699
|
|
|
1.36
|
%
|
|
338,672
|
|
|
1.23
|
%
|
|||
Total interest-bearing deposits
|
1,074,578
|
|
|
0.90
|
%
|
|
1,029,517
|
|
|
0.69
|
%
|
|
1,005,039
|
|
|
0.61
|
%
|
|||
Total average deposits
|
$
|
1,652,279
|
|
|
0.59
|
%
|
|
$
|
1,575,064
|
|
|
0.45
|
%
|
|
$
|
1,512,406
|
|
|
0.40
|
%
|
(in thousands)
|
December 31, 2019
|
||
Three months or less
|
$
|
36,516
|
|
Over three months through six months
|
32,757
|
|
|
Over six months through 12 months
|
76,721
|
|
|
Over 12 months through three years
|
54,124
|
|
|
Over three years
|
22,404
|
|
|
Total
|
$
|
222,522
|
|
|
December 31,
|
||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Short-term borrowings
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Long-term borrowings:
|
—
|
|
|
—
|
|
|
—
|
|
|||
FHLB long-term advances
|
—
|
|
|
—
|
|
|
182
|
|
|||
Junior subordinated debentures
|
—
|
|
|
11,341
|
|
|
11,341
|
|
|||
Total borrowings
|
$
|
—
|
|
|
$
|
11,341
|
|
|
$
|
11,523
|
|
(dollars in thousands)
|
Issuance
Date
|
|
Maturity
Date
|
|
Redemption Date
|
|
Amount Outstanding December 31, 2019
|
|
Amount
Outstanding December 31, 2018 |
|
Interest Rate as of the Redemption Date
|
|
Rate as of December 31, 2018
|
|||||
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
|
|
|
5.58%(4)
|
|
5.34
|
%
|
||
Total
|
|
|
|
|
|
|
$
|
—
|
|
|
$
|
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 the 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 the 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 the three-month LIBOR plus 3.00%, with the last reprice date on April 29, 2019.
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||
(dollars in thousands)
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
||||||
Red River Bancshares, Inc.
|
|
|
|
|
|
|
|
||||||
Total Risk-Based Capital
|
$
|
264,313
|
|
|
18.02
|
%
|
|
$
|
223,187
|
|
|
16.55
|
%
|
Tier 1 Risk-Based Capital
|
250,376
|
|
|
17.07
|
%
|
|
210,663
|
|
|
15.62
|
%
|
||
Common Equity Tier 1 Capital
|
250,376
|
|
|
17.07
|
%
|
|
199,663
|
|
|
14.80
|
%
|
||
Tier 1 Leverage Capital
|
250,376
|
|
|
12.82
|
%
|
|
210,663
|
|
|
11.40
|
%
|
||
|
|
|
|
|
|
|
|
||||||
Red River Bank
|
|
|
|
|
|
|
|
||||||
Total Risk-Based Capital
|
$
|
238,021
|
|
|
16.23
|
%
|
|
$
|
211,240
|
|
|
15.66
|
%
|
Tier 1 Risk-Based Capital
|
224,084
|
|
|
15.28
|
%
|
|
198,716
|
|
|
14.73
|
%
|
||
Common Equity Tier 1 Capital
|
224,084
|
|
|
15.28
|
%
|
|
198,716
|
|
|
14.73
|
%
|
||
Tier 1 Leverage Capital
|
224,084
|
|
|
11.47
|
%
|
|
198,716
|
|
|
10.76
|
%
|
|
December 31, 2019
|
||||||||||||||||||
(in thousands)
|
Less than One Year
|
|
One to Three Years
|
|
Three to Five Years
|
|
Greater than Five Years
|
|
Total
|
||||||||||
Time deposits
|
$
|
205,144
|
|
|
$
|
87,324
|
|
|
$
|
25,771
|
|
|
$
|
14,919
|
|
|
$
|
333,158
|
|
Purchase commitments(1)
|
2,500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,500
|
|
|||||
Limited partnership investment(2)
|
226
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
226
|
|
|||||
Operating lease obligations
|
369
|
|
|
1,233
|
|
|
1,376
|
|
|
1,625
|
|
|
4,603
|
|
|||||
Total contractual obligations
|
$
|
208,239
|
|
|
$
|
88,557
|
|
|
$
|
27,147
|
|
|
$
|
16,544
|
|
|
$
|
340,487
|
|
(1)
|
This commitment relates to real estate that the Company has committed to purchase.
|
(2)
|
This commitment represents the amount we are obligated to contribute to an investment in a small business investment company limited partnership. The capital contributions may be required at any time, and are therefore reflected in the “Less Than One Year” category.
|
|
December 31, 2019
|
||||||||||||||||||
(in thousands)
|
Less than One Year
|
|
One to Three Years
|
|
Three to Five Years
|
|
Greater than Five Years
|
|
Total
|
||||||||||
Commitments to extend credit
|
$
|
188,170
|
|
|
$
|
51,167
|
|
|
$
|
12,151
|
|
|
$
|
5,502
|
|
|
$
|
256,990
|
|
Standby letters of credit
|
11,072
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,072
|
|
|||||
Total
|
$
|
199,242
|
|
|
$
|
51,167
|
|
|
$
|
12,151
|
|
|
$
|
5,502
|
|
|
$
|
268,062
|
|
|
December 31, 2019
|
|
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 (bps)
|
|
|
|
|
|
|
|
||||
+300
|
20.2
|
%
|
|
8.3
|
%
|
|
19.2
|
%
|
|
7.1
|
%
|
+200
|
13.9
|
%
|
|
7.0
|
%
|
|
12.9
|
%
|
|
5.1
|
%
|
+100
|
7.4
|
%
|
|
4.7
|
%
|
|
6.6
|
%
|
|
3.0
|
%
|
Base
|
0.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
-100
|
(8.0
|
)%
|
|
(9.9
|
)%
|
|
(6.6
|
)%
|
|
(5.0
|
)%
|
-200
|
(13.0
|
)%
|
|
(22.3
|
)%
|
|
(14.6
|
)%
|
|
(13.4
|
)%
|
|
December 31,
|
||||||||||||||||||
(dollars in thousands, except per share data)
|
2019
|
|
2018
|
|
2017(1)
|
|
2016(1)
|
|
2015(1)
|
||||||||||
Tangible common equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Total stockholders' equity
|
$
|
251,898
|
|
|
$
|
193,703
|
|
|
$
|
178,103
|
|
|
$
|
151,823
|
|
|
$
|
142,380
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Intangible assets
|
(1,546
|
)
|
|
(1,546
|
)
|
|
(1,546
|
)
|
|
(1,546
|
)
|
|
(1,577
|
)
|
|||||
Total tangible common equity
|
$
|
250,352
|
|
|
$
|
192,157
|
|
|
$
|
176,557
|
|
|
$
|
150,277
|
|
|
$
|
140,803
|
|
Common shares outstanding
|
7,306,221
|
|
|
6,627,358
|
|
|
6,721,146
|
|
|
6,362,910
|
|
|
6,390,210
|
|
|||||
Book value per common share
|
$
|
34.48
|
|
|
$
|
29.23
|
|
|
$
|
26.50
|
|
|
$
|
23.86
|
|
|
$
|
22.28
|
|
Tangible book value per common share
|
$
|
34.27
|
|
|
$
|
28.99
|
|
|
$
|
26.27
|
|
|
$
|
23.62
|
|
|
$
|
22.03
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
1,988,225
|
|
|
$
|
1,860,588
|
|
|
$
|
1,724,264
|
|
|
$
|
1,644,877
|
|
|
$
|
1,492,702
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Intangible assets
|
(1,546
|
)
|
|
(1,546
|
)
|
|
(1,546
|
)
|
|
(1,546
|
)
|
|
(1,577
|
)
|
|||||
Total tangible assets
|
$
|
1,986,679
|
|
|
$
|
1,859,042
|
|
|
$
|
1,722,718
|
|
|
$
|
1,643,331
|
|
|
$
|
1,491,125
|
|
Total stockholder's equity to assets
|
12.67
|
%
|
|
10.41
|
%
|
|
10.33
|
%
|
|
9.23
|
%
|
|
9.54
|
%
|
|||||
Tangible common equity to tangible assets
|
12.60
|
%
|
|
10.34
|
%
|
|
10.25
|
%
|
|
9.14
|
%
|
|
9.44
|
%
|
(1)
|
Share amounts have been adjusted to give effect to the 2018 2-for-1 stock split.
|
(in thousands, except share amounts)
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
|||||
ASSETS
|
|
|
|
|
||||
Cash and due from banks
|
|
$
|
25,937
|
|
|
$
|
34,070
|
|
Interest-bearing deposits in other banks
|
|
107,355
|
|
|
117,836
|
|
||
Total Cash and Cash Equivalents
|
|
133,292
|
|
|
151,906
|
|
||
Securities available-for-sale
|
|
335,573
|
|
|
307,877
|
|
||
Equity securities
|
|
3,936
|
|
|
3,821
|
|
||
Nonmarketable equity securities
|
|
1,350
|
|
|
1,299
|
|
||
Loans held for sale
|
|
5,089
|
|
|
2,904
|
|
||
Loans held for investment
|
|
1,438,924
|
|
|
1,328,438
|
|
||
Allowance for loan losses
|
|
(13,937
|
)
|
|
(12,524
|
)
|
||
Premises and equipment, net
|
|
41,744
|
|
|
39,690
|
|
||
Accrued interest receivable
|
|
5,251
|
|
|
5,013
|
|
||
Bank-owned life insurance
|
|
21,845
|
|
|
21,301
|
|
||
Intangible assets
|
|
1,546
|
|
|
1,546
|
|
||
Right-of-use assets
|
|
4,553
|
|
|
—
|
|
||
Other assets
|
|
9,059
|
|
|
9,317
|
|
||
Total Assets
|
|
$
|
1,988,225
|
|
|
$
|
1,860,588
|
|
LIABILITIES
|
|
|
|
|
||||
Noninterest-bearing deposits
|
|
$
|
584,915
|
|
|
$
|
547,880
|
|
Interest-bearing deposits
|
|
1,136,205
|
|
|
1,097,703
|
|
||
Total Deposits
|
|
1,721,120
|
|
|
1,645,583
|
|
||
Junior subordinated debentures
|
|
—
|
|
|
11,341
|
|
||
Accrued interest payable
|
|
2,222
|
|
|
1,757
|
|
||
Lease liabilities
|
|
4,603
|
|
|
—
|
|
||
Accrued expenses and other liabilities
|
|
8,382
|
|
|
8,204
|
|
||
Total Liabilities
|
|
1,736,327
|
|
|
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 - 7,306,221 and 6,627,358 shares |
|
68,082
|
|
|
41,094
|
|
||
Additional paid-in capital
|
|
1,269
|
|
|
1,042
|
|
||
Retained earnings
|
|
182,571
|
|
|
159,073
|
|
||
Accumulated other comprehensive income (loss)
|
|
(24
|
)
|
|
(7,506
|
)
|
||
Total Stockholders' Equity
|
|
251,898
|
|
|
193,703
|
|
||
Total Liabilities and Stockholders' Equity
|
|
$
|
1,988,225
|
|
|
$
|
1,860,588
|
|
(in thousands, except per share data)
|
|
Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
|||||
INTEREST AND DIVIDEND INCOME
|
|
|
|
|
||||
Interest and fees on loans
|
|
$
|
64,570
|
|
|
$
|
58,747
|
|
Interest on securities
|
|
7,241
|
|
|
6,951
|
|
||
Interest on federal funds sold
|
|
753
|
|
|
356
|
|
||
Interest on deposits in other banks
|
|
1,127
|
|
|
798
|
|
||
Dividends on stock
|
|
34
|
|
|
34
|
|
||
Total Interest and Dividend Income
|
|
73,725
|
|
|
66,886
|
|
||
INTEREST EXPENSE
|
|
|
|
|
||||
Interest on deposits
|
|
9,701
|
|
|
7,084
|
|
||
Interest on other borrowed funds
|
|
—
|
|
|
7
|
|
||
Interest on junior subordinated debentures
|
|
385
|
|
|
558
|
|
||
Total Interest Expense
|
|
10,086
|
|
|
7,649
|
|
||
Net Interest Income
|
|
63,639
|
|
|
59,237
|
|
||
Provision for loan losses
|
|
1,810
|
|
|
1,990
|
|
||
Net Interest Income After Provision for Loan Losses
|
|
61,829
|
|
|
57,247
|
|
||
NONINTEREST INCOME
|
|
|
|
|
||||
Service charges on deposit accounts
|
|
4,573
|
|
|
4,582
|
|
||
Debit card income, net
|
|
3,095
|
|
|
2,986
|
|
||
Mortgage loan income
|
|
3,002
|
|
|
2,107
|
|
||
Brokerage income
|
|
2,125
|
|
|
1,944
|
|
||
Loan and deposit income
|
|
1,521
|
|
|
1,359
|
|
||
Bank-owned life insurance income
|
|
544
|
|
|
732
|
|
||
Gain (Loss) on equity securities
|
|
115
|
|
|
(85
|
)
|
||
Gain (Loss) on sale of securities
|
|
18
|
|
|
32
|
|
||
SBIC income
|
|
819
|
|
|
509
|
|
||
Other income
|
|
158
|
|
|
365
|
|
||
Total Noninterest Income
|
|
15,970
|
|
|
14,531
|
|
||
OPERATING EXPENSES
|
|
|
|
|
||||
Personnel expenses
|
|
27,800
|
|
|
26,094
|
|
||
Occupancy and equipment expenses
|
|
4,976
|
|
|
4,500
|
|
||
Technology expenses
|
|
2,293
|
|
|
2,070
|
|
||
Advertising
|
|
1,025
|
|
|
762
|
|
||
Other business development expenses
|
|
1,107
|
|
|
1,127
|
|
||
Data processing expense
|
|
1,882
|
|
|
1,386
|
|
||
Other taxes
|
|
1,579
|
|
|
1,327
|
|
||
Loan and deposit expenses
|
|
1,148
|
|
|
852
|
|
||
Legal and professional expenses
|
|
1,541
|
|
|
1,422
|
|
||
Regulatory assessment expense
|
|
351
|
|
|
642
|
|
||
Other operating expenses
|
|
3,633
|
|
|
3,240
|
|
||
Total Operating Expenses
|
|
47,335
|
|
|
43,422
|
|
||
Income Before Income Tax Expense
|
|
30,464
|
|
|
28,356
|
|
||
Income tax expense
|
|
5,640
|
|
|
5,300
|
|
||
Net Income
|
|
$
|
24,824
|
|
|
$
|
23,056
|
|
EARNINGS PER SHARE
|
|
|
|
|
||||
Basic
|
|
$
|
3.51
|
|
|
$
|
3.43
|
|
Diluted
|
|
$
|
3.49
|
|
|
$
|
3.41
|
|
(in thousands)
|
|
Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
|||||
Net income
|
|
$
|
24,824
|
|
|
$
|
23,056
|
|
Other comprehensive income (loss):
|
|
|
|
|
||||
Unrealized net gains (loss) on securities arising during period
|
|
9,489
|
|
|
(2,727
|
)
|
||
Tax effect
|
|
(1,993
|
)
|
|
557
|
|
||
(Gain) loss on sale of securities included in net income
|
|
(18
|
)
|
|
(32
|
)
|
||
Tax effect
|
|
4
|
|
|
7
|
|
||
Total change in other comprehensive income (loss)
|
|
7,482
|
|
|
(2,195
|
)
|
||
Comprehensive Income
|
|
$
|
32,306
|
|
|
$
|
20,861
|
|
(in thousands, except share amounts)
|
Common Shares Issued
|
|
Common
Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
Stockholders'
Equity
|
|||||||||||
Balance as of December 31, 2017(1)
|
6,721,146
|
|
|
$
|
45,539
|
|
|
$
|
849
|
|
|
$
|
137,100
|
|
|
$
|
(5,385
|
)
|
|
$
|
178,103
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
23,056
|
|
|
—
|
|
|
23,056
|
|
|||||
Stock incentive plan
|
—
|
|
|
—
|
|
|
193
|
|
|
—
|
|
|
—
|
|
|
193
|
|
|||||
Issuance of restricted shares of common stock through stock incentive plan, net(1)
|
6,750
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Issuance of shares of common stock through exercise of stock options(1)
|
5,010
|
|
|
53
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53
|
|
|||||
Issuance of shares of common stock as board compensation(1)
|
2,452
|
|
|
92
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
92
|
|
|||||
Repurchase of shares of common stock
|
(108,000
|
)
|
|
(4,590
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,590
|
)
|
|||||
Cash dividend - $0.15 per share(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,009
|
)
|
|
—
|
|
|
(1,009
|
)
|
|||||
Reclassification for adoption of accounting standard
|
—
|
|
|
—
|
|
|
—
|
|
|
(74
|
)
|
|
74
|
|
|
—
|
|
|||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,195
|
)
|
|
(2,195
|
)
|
|||||
Balance as of December 31, 2018
|
6,627,358
|
|
|
41,094
|
|
|
1,042
|
|
|
159,073
|
|
|
(7,506
|
)
|
|
193,703
|
|
|||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
24,824
|
|
|
—
|
|
|
24,824
|
|
|||||
Stock incentive plan
|
—
|
|
|
—
|
|
|
227
|
|
|
—
|
|
|
—
|
|
|
227
|
|
|||||
Issuance of shares of common stock through IPO
|
663,320
|
|
|
26,812
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26,812
|
|
|||||
Issuance of restricted shares of common stock through stock incentive plan, net
|
5,975
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Issuance of shares of common stock through exercise of stock options
|
7,200
|
|
|
80
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
80
|
|
|||||
Issuance of shares of common stock as board compensation
|
2,368
|
|
|
96
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
96
|
|
|||||
Cash dividend - $0.20 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,326
|
)
|
|
—
|
|
|
(1,326
|
)
|
|||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,482
|
|
|
7,482
|
|
|||||
Balance as of December 31, 2019
|
7,306,221
|
|
|
$
|
68,082
|
|
|
$
|
1,269
|
|
|
$
|
182,571
|
|
|
$
|
(24
|
)
|
|
$
|
251,898
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
|||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
||||
Net income
|
|
$
|
24,824
|
|
|
$
|
23,056
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
|
|
|
||||
Depreciation
|
|
1,733
|
|
|
1,659
|
|
||
Amortization
|
|
619
|
|
|
382
|
|
||
Share-based compensation earned
|
|
227
|
|
|
193
|
|
||
Share-based board compensation earned
|
|
87
|
|
|
96
|
|
||
(Gain) Loss on other assets owned
|
|
(18
|
)
|
|
(243
|
)
|
||
Net (accretion) amortization on securities AFS
|
|
1,380
|
|
|
1,311
|
|
||
Net (accretion) amortization on securities HTM
|
|
—
|
|
|
11
|
|
||
Gain on sale of securities AFS
|
|
(18
|
)
|
|
(32
|
)
|
||
Provision for loan losses
|
|
1,810
|
|
|
1,990
|
|
||
Deferred income tax (benefit) expense
|
|
(556
|
)
|
|
(452
|
)
|
||
Net (increase) decrease in loans HFS
|
|
(2,185
|
)
|
|
(1,037
|
)
|
||
Net (increase) decrease in accrued interest receivable
|
|
(238
|
)
|
|
(82
|
)
|
||
Net (increase) decrease in BOLI
|
|
(544
|
)
|
|
(732
|
)
|
||
Net increase (decrease) in accrued interest payable
|
|
465
|
|
|
254
|
|
||
Other operating activities, net
|
|
(1,143
|
)
|
|
(359
|
)
|
||
Net cash provided by (used in) operating activities
|
|
26,443
|
|
|
26,015
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
||||
Activity in securities AFS:
|
|
|
|
|
||||
Sales
|
|
58,859
|
|
|
5,282
|
|
||
Maturities, prepayments, and calls
|
|
67,144
|
|
|
52,692
|
|
||
Purchases
|
|
(145,589
|
)
|
|
(20,728
|
)
|
||
Activity in securities HTM:
|
|
|
|
|
||||
Maturities, prepayments, and calls
|
|
—
|
|
|
1,235
|
|
||
Purchase of nonmarketable equity securities
|
|
(51
|
)
|
|
(29
|
)
|
||
Net (increase) decrease in loans HFI
|
|
(112,574
|
)
|
|
(82,923
|
)
|
||
Proceeds from the settlement of insurance claims
|
|
—
|
|
|
868
|
|
||
Proceeds from sales of foreclosed assets
|
|
1,164
|
|
|
1,389
|
|
||
Purchases of premises and equipment
|
|
(3,772
|
)
|
|
(5,432
|
)
|
||
Net cash used in investing activities
|
|
(134,819
|
)
|
|
(47,646
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
||||
Net increase (decrease) in deposits
|
|
75,537
|
|
|
119,598
|
|
||
Repayments of other borrowed funds
|
|
—
|
|
|
(182
|
)
|
||
Redemption of junior subordinated debentures
|
|
(11,341
|
)
|
|
—
|
|
||
Payment to repurchase common stock
|
|
—
|
|
|
(4,590
|
)
|
||
Proceeds from exercise of stock options
|
|
80
|
|
|
53
|
|
||
Proceeds from initial public offering, net
|
|
26,812
|
|
|
—
|
|
||
Cash dividends
|
|
(1,326
|
)
|
|
(1,009
|
)
|
||
Net cash provided by financing activities
|
|
89,762
|
|
|
113,870
|
|
||
Net change in cash and cash equivalents
|
|
(18,614
|
)
|
|
92,239
|
|
||
Cash and cash equivalents - beginning of year
|
|
151,906
|
|
|
59,667
|
|
||
Cash and cash equivalents - end of year
|
|
$
|
133,292
|
|
|
$
|
151,906
|
|
(in thousands)
|
Years Ended December 31,
|
||||||
2019
|
|
2018
|
|||||
SUPPLEMENTAL DISCLOSURES
|
|
|
|
||||
Cash paid during the year for:
|
|
|
|
||||
Interest
|
$
|
9,621
|
|
|
$
|
7,395
|
|
Income taxes
|
6,286
|
|
|
5,503
|
|
||
Initial measurement and recognition of operating lease assets
in exchange for lease liabilities |
4,954
|
|
|
—
|
|
||
SUPPLEMENTAL INFORMATION FOR NON-CASH
INVESTING AND FINANCING ACTIVITIES |
|
|
|
||||
Assets acquired in settlement of loans
|
1,691
|
|
|
1,790
|
|
||
Transfers of investment securities between HTM and AFS
|
—
|
|
|
7,745
|
|
||
Unsettled securities AFS purchases at year-end
|
965
|
|
|
—
|
|
1.
|
Business and Summary of Significant Accounting Policies
|
•
|
Revenue earned at a point in time - Fee income (including wire transfer, check ordering, and other transactional fees), NSF/OD Charges, ATM/Card Fee Income (including ATM transaction fees and credit and debit card interchange income), and brokerage income. Revenue is recorded as transactions occur or services are provided to customers. Revenue recognized under these contracts totaled approximately $12.5 million and $12.0 million for the years ended December 31, 2019 and 2018, respectively. The Company is
|
•
|
Revenue earned over time (generally under a monthly contract) - Debit card agreement and safe deposit box fees. Revenue is recorded in the period transactions occur or services are rendered to the customer. The Company is the principal in each of these contracts. Revenue recognized under these contracts totaled approximately $319,000 and $317,000 for the period ended December 31, 2019 and 2018, respectively.
|
2.
|
Securities
|
|
December 31, 2019
|
||||||||||||||
(in thousands)
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
||||||||
Securities AFS:
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities
|
$
|
236,572
|
|
|
$
|
299
|
|
|
$
|
(1,200
|
)
|
|
$
|
235,671
|
|
Municipal bonds
|
91,929
|
|
|
1,108
|
|
|
(279
|
)
|
|
92,758
|
|
||||
U.S. agency securities
|
7,102
|
|
|
46
|
|
|
(4
|
)
|
|
7,144
|
|
||||
Total Securities AFS
|
$
|
335,603
|
|
|
$
|
1,453
|
|
|
$
|
(1,483
|
)
|
|
$
|
335,573
|
|
|
December 31, 2018
|
||||||||||||||
(in thousands)
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
||||||||
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
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
Amortized
Cost
|
|
Fair
Value
|
||||
Within one year
|
$
|
2,182
|
|
|
$
|
2,187
|
|
After one year but within five years
|
30,064
|
|
|
29,948
|
|
||
After five years but within ten years
|
69,467
|
|
|
69,903
|
|
||
After ten years
|
233,890
|
|
|
233,535
|
|
||
Total
|
$
|
335,603
|
|
|
$
|
335,573
|
|
|
Less than twelve months
|
|
Twelve months or more
|
||||||||||||
(in thousands)
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized Losses |
|
Fair
Value |
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
||||||||
Securities AFS:
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities
|
$
|
(474
|
)
|
|
$
|
109,416
|
|
|
$
|
(726
|
)
|
|
$
|
70,425
|
|
Municipal bonds
|
(172
|
)
|
|
18,735
|
|
|
(107
|
)
|
|
9,323
|
|
||||
U.S. agency securities
|
(4
|
)
|
|
1,020
|
|
|
—
|
|
|
—
|
|
||||
Total Securities AFS
|
$
|
(650
|
)
|
|
$
|
129,171
|
|
|
$
|
(833
|
)
|
|
$
|
79,748
|
|
|
|
|
|
|
|
|
|
||||||||
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
|
|
(1)
|
The proceeds include the gross gains and losses.
|
3.
|
Loans and Asset Quality
|
|
December 31,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Real estate:
|
|
|
|
||||
Commercial real estate
|
$
|
531,990
|
|
|
$
|
454,689
|
|
One-to-four family residential
|
420,020
|
|
|
406,963
|
|
||
Construction and development
|
132,461
|
|
|
102,868
|
|
||
Commercial and industrial
|
267,940
|
|
|
275,881
|
|
||
Tax-exempt
|
56,494
|
|
|
60,104
|
|
||
Consumer
|
30,019
|
|
|
27,933
|
|
||
Total loans HFI
|
$
|
1,438,924
|
|
|
$
|
1,328,438
|
|
Total loans HFS
|
$
|
5,089
|
|
|
$
|
2,904
|
|
|
Years ended December 31,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Balance - beginning of period
|
$
|
40,311
|
|
|
$
|
41,463
|
|
New loans/changes in relationships
|
33,354
|
|
|
31,688
|
|
||
Repayments/changes in relationships
|
(43,056
|
)
|
|
(32,840
|
)
|
||
Balance - end of period
|
$
|
30,609
|
|
|
$
|
40,311
|
|
(in thousands)
|
Beginning
Balance
|
|
Provision
for Loan
Losses
|
|
Loans
Charged-off
|
|
Recoveries
|
|
Ending
Balance
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
$
|
3,081
|
|
|
$
|
373
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,454
|
|
One-to-four family residential
|
3,146
|
|
|
216
|
|
|
(44
|
)
|
|
5
|
|
|
3,323
|
|
|||||
Construction and development
|
951
|
|
|
172
|
|
|
—
|
|
|
88
|
|
|
1,211
|
|
|||||
Commercial and industrial
|
4,604
|
|
|
850
|
|
|
(864
|
)
|
|
585
|
|
|
5,175
|
|
|||||
Tax-exempt
|
372
|
|
|
(38
|
)
|
|
—
|
|
|
—
|
|
|
334
|
|
|||||
Consumer
|
370
|
|
|
237
|
|
|
(311
|
)
|
|
144
|
|
|
440
|
|
|||||
Total allowance for loan losses
|
$
|
12,524
|
|
|
$
|
1,810
|
|
|
$
|
(1,219
|
)
|
|
$
|
822
|
|
|
$
|
13,937
|
|
(in thousands)
|
Beginning
Balance
|
|
Provision
for Loan
Losses
|
|
Loans
Charged-off
|
|
Recoveries
|
|
Ending
Balance
|
||||||||||
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
|
|
(in thousands)
|
Individually
Evaluated
for
Impairment
|
|
Collectively
Evaluated for Impairment |
|
Acquired with
Deteriorated
Credit
Quality
|
|
Total
|
||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
||||||||
Real estate:
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
$
|
260
|
|
|
$
|
3,194
|
|
|
$
|
—
|
|
|
$
|
3,454
|
|
One-to-four family residential
|
31
|
|
|
3,292
|
|
|
—
|
|
|
3,323
|
|
||||
Construction and development
|
10
|
|
|
1,201
|
|
|
—
|
|
|
1,211
|
|
||||
Commercial and industrial
|
2,916
|
|
|
2,259
|
|
|
—
|
|
|
5,175
|
|
||||
Tax-exempt
|
—
|
|
|
334
|
|
|
—
|
|
|
334
|
|
||||
Consumer
|
71
|
|
|
369
|
|
|
—
|
|
|
440
|
|
||||
Total allowance for loan losses
|
$
|
3,288
|
|
|
$
|
10,649
|
|
|
$
|
—
|
|
|
$
|
13,937
|
|
|
|
|
|
|
|
|
|
||||||||
Loans:
|
|
|
|
|
|
|
|
||||||||
Real estate:
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
$
|
2,639
|
|
|
$
|
529,351
|
|
|
$
|
—
|
|
|
$
|
531,990
|
|
One-to-four family residential
|
1,193
|
|
|
418,827
|
|
|
—
|
|
|
420,020
|
|
||||
Construction and development
|
38
|
|
|
132,423
|
|
|
—
|
|
|
132,461
|
|
||||
Commercial and industrial
|
8,797
|
|
|
259,143
|
|
|
—
|
|
|
267,940
|
|
||||
Tax-exempt
|
—
|
|
|
56,494
|
|
|
—
|
|
|
56,494
|
|
||||
Consumer
|
75
|
|
|
29,944
|
|
|
—
|
|
|
30,019
|
|
||||
Total loans HFI
|
$
|
12,742
|
|
|
$
|
1,426,182
|
|
|
$
|
—
|
|
|
$
|
1,438,924
|
|
(in thousands)
|
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
|
|
|
|
|
||||||||||||||
(in thousands)
|
Current
|
|
30-89 Days
Past Due |
|
90 Days
or More
Past Due
|
|
Nonaccrual
|
|
Total
Loans
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
$
|
530,712
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,278
|
|
|
$
|
531,990
|
|
One-to-four family residential
|
419,229
|
|
|
184
|
|
|
—
|
|
|
607
|
|
|
420,020
|
|
|||||
Construction and development
|
132,423
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
132,461
|
|
|||||
Commercial and industrial
|
264,427
|
|
|
143
|
|
|
—
|
|
|
3,370
|
|
|
267,940
|
|
|||||
Tax-exempt
|
56,494
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56,494
|
|
|||||
Consumer
|
29,973
|
|
|
20
|
|
|
—
|
|
|
26
|
|
|
30,019
|
|
|||||
Total loans HFI
|
$
|
1,433,258
|
|
|
$
|
347
|
|
|
$
|
—
|
|
|
$
|
5,319
|
|
|
$
|
1,438,924
|
|
|
Accruing
|
|
|
|
|
||||||||||||||
(in thousands)
|
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
|
|
(in thousands)
|
Unpaid
Principal
Balance
|
|
Recorded
Investment
|
|
Related
Allowance
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
$
|
1,560
|
|
|
$
|
1,537
|
|
|
$
|
—
|
|
|
$
|
2,647
|
|
|
$
|
74
|
|
One-to-four family residential
|
1,040
|
|
|
984
|
|
|
—
|
|
|
1,194
|
|
|
44
|
|
|||||
Construction and development
|
—
|
|
|
—
|
|
|
—
|
|
|
76
|
|
|
—
|
|
|||||
Commercial and industrial
|
1,805
|
|
|
1,474
|
|
|
—
|
|
|
3,685
|
|
|
3
|
|
|||||
Tax-exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
2
|
|
|
2
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|||||
Total with no related allowance
|
4,407
|
|
|
3,997
|
|
|
—
|
|
|
7,611
|
|
|
121
|
|
|||||
With allowance recorded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
1,263
|
|
|
1,102
|
|
|
260
|
|
|
1,076
|
|
|
—
|
|
|||||
One-to-four family residential
|
216
|
|
|
209
|
|
|
31
|
|
|
339
|
|
|
—
|
|
|||||
Construction and development
|
51
|
|
|
38
|
|
|
10
|
|
|
89
|
|
|
—
|
|
|||||
Commercial and industrial
|
8,544
|
|
|
7,323
|
|
|
2,916
|
|
|
7,746
|
|
|
299
|
|
|||||
Tax-exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
76
|
|
|
73
|
|
|
71
|
|
|
76
|
|
|
4
|
|
|||||
Total with related allowance
|
10,150
|
|
|
8,745
|
|
|
3,288
|
|
|
9,326
|
|
|
303
|
|
|||||
Total impaired loans
|
$
|
14,557
|
|
|
$
|
12,742
|
|
|
$
|
3,288
|
|
|
$
|
16,937
|
|
|
$
|
424
|
|
(in thousands)
|
Unpaid
Principal
Balance
|
|
Recorded
Investment
|
|
Related
Allowance
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
$
|
2,376
|
|
|
$
|
2,255
|
|
|
$
|
—
|
|
|
$
|
2,470
|
|
|
$
|
72
|
|
One-to-four family residential
|
1,912
|
|
|
1,855
|
|
|
—
|
|
|
2,026
|
|
|
149
|
|
|||||
Construction and development
|
18
|
|
|
16
|
|
|
—
|
|
|
738
|
|
|
—
|
|
|||||
Commercial and industrial
|
11,003
|
|
|
9,707
|
|
|
—
|
|
|
8,909
|
|
|
345
|
|
|||||
Tax-exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
12
|
|
|
12
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|||||
Total with no related allowance
|
15,321
|
|
|
13,845
|
|
|
—
|
|
|
14,153
|
|
|
566
|
|
|||||
With allowance recorded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
1,584
|
|
|
1,574
|
|
|
206
|
|
|
1,715
|
|
|
132
|
|
|||||
One-to-four family residential
|
507
|
|
|
493
|
|
|
20
|
|
|
497
|
|
|
23
|
|
|||||
Construction and development
|
52
|
|
|
39
|
|
|
12
|
|
|
41
|
|
|
—
|
|
|||||
Commercial and industrial
|
5,809
|
|
|
5,809
|
|
|
2,304
|
|
|
5,813
|
|
|
210
|
|
|||||
Tax-exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
95
|
|
|
92
|
|
|
75
|
|
|
35
|
|
|
1
|
|
|||||
Total with related allowance
|
8,047
|
|
|
8,007
|
|
|
2,617
|
|
|
8,101
|
|
|
366
|
|
|||||
Total impaired loans
|
$
|
23,368
|
|
|
$
|
21,852
|
|
|
$
|
2,617
|
|
|
$
|
22,254
|
|
|
$
|
932
|
|
(dollars in thousands)
|
Current
|
|
30-89
Days
Past Due |
|
90 Days
or More
Past Due
|
|
Nonaccrual
|
|
Total
TDRs
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
$
|
1,361
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,278
|
|
|
$
|
2,639
|
|
One-to-four family residential
|
252
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
252
|
|
|||||
Construction and development
|
—
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
38
|
|
|||||
Commercial and industrial
|
36
|
|
|
—
|
|
|
—
|
|
|
1,869
|
|
|
1,905
|
|
|||||
Tax-exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
46
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46
|
|
|||||
Total
|
$
|
1,695
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,185
|
|
|
$
|
4,880
|
|
Number of TDR loans
|
12
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
18
|
|
(dollars in thousands)
|
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
|
|
|
2019
|
|
2018
|
||||||||||||||||||
|
|
|
Recorded Investment
|
|
|
|
Recorded Investment
|
||||||||||||||
(dollars in thousands)
|
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
|
|
|
60
|
|
|
62
|
|
|
1
|
|
|
40
|
|
|
40
|
|
||||
Construction and development
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial and industrial
|
1
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Tax-exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
58
|
|
|
58
|
|
||||
Total
|
3
|
|
|
$
|
230
|
|
|
$
|
232
|
|
|
3
|
|
|
$
|
533
|
|
|
$
|
577
|
|
(in thousands)
|
Pass
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Total
|
||||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate
|
$
|
515,926
|
|
|
$
|
14,118
|
|
|
$
|
1,946
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
531,990
|
|
One-to-four family residential
|
416,884
|
|
|
2,021
|
|
|
1,115
|
|
|
—
|
|
|
—
|
|
|
420,020
|
|
||||||
Construction and development
|
131,185
|
|
|
565
|
|
|
711
|
|
|
—
|
|
|
—
|
|
|
132,461
|
|
||||||
Commercial and industrial
|
247,382
|
|
|
11,473
|
|
|
9,085
|
|
|
—
|
|
|
—
|
|
|
267,940
|
|
||||||
Tax-exempt
|
56,494
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56,494
|
|
||||||
Consumer
|
29,876
|
|
|
5
|
|
|
138
|
|
|
—
|
|
|
—
|
|
|
30,019
|
|
||||||
Total loans HFI
|
$
|
1,397,747
|
|
|
$
|
28,182
|
|
|
$
|
12,995
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,438,924
|
|
(in thousands)
|
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.
|
Premises and Equipment, Net
|
|
December 31,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Land
|
$
|
14,495
|
|
|
$
|
12,087
|
|
Buildings
|
28,478
|
|
|
23,809
|
|
||
Leasehold improvements
|
2,720
|
|
|
2,709
|
|
||
Furniture and equipment
|
12,002
|
|
|
11,285
|
|
||
Vehicles
|
341
|
|
|
339
|
|
||
Computer equipment
|
3,185
|
|
|
2,919
|
|
||
Projects in process
|
1,609
|
|
|
6,152
|
|
||
Total premises and equipment
|
62,830
|
|
|
59,300
|
|
||
Less: Accumulated depreciation
|
(21,086
|
)
|
|
(19,610
|
)
|
||
Premises and equipment, net
|
$
|
41,744
|
|
|
$
|
39,690
|
|
5.
|
Deposits
|
|
December 31,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Noninterest-bearing demand deposits
|
$
|
584,915
|
|
|
$
|
547,880
|
|
Interest-bearing deposits:
|
|
|
|
||||
NOW accounts
|
331,374
|
|
|
304,545
|
|
||
Money market deposits
|
367,689
|
|
|
358,575
|
|
||
Savings accounts
|
103,984
|
|
|
104,355
|
|
||
Time deposits < $100,000
|
110,636
|
|
|
119,637
|
|
||
Time deposits $100,000 to $250,000
|
131,957
|
|
|
128,637
|
|
||
Time deposits > $250,000
|
90,565
|
|
|
81,954
|
|
||
Total interest-bearing deposits
|
1,136,205
|
|
|
1,097,703
|
|
||
Total deposits
|
$
|
1,721,120
|
|
|
$
|
1,645,583
|
|
Years ending December 31,
|
|
Amount
|
||
(in thousands)
|
|
|
||
2020
|
|
$
|
205,144
|
|
2021
|
|
62,292
|
|
|
2022
|
|
25,032
|
|
|
2023
|
|
14,633
|
|
|
2024
|
|
11,138
|
|
|
Thereafter
|
|
14,919
|
|
|
|
|
$
|
333,158
|
|
6.
|
Other Borrowed Funds
|
7.
|
Junior Subordinated Debentures
|
(dollars in thousands)
|
Trust II
|
|
Trust III
|
|
FBT CT I
|
|
Total
|
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
||||||||
Trust preferred securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Common securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total junior subordinated debentures
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
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 the redemption date
|
5.84
|
%
|
|
4.58
|
%
|
|
5.58
|
%
|
|
|
|||||
Interest rate as of December 31, 2018
|
5.65
|
%
|
|
4.30
|
%
|
|
5.34
|
%
|
|
|
8.
|
Leases
|
|
As of and for the Year Ended
|
||
(dollars in thousands)
|
December 31, 2019
|
||
Cash paid for amounts included in measurement of lease liabilities for operating leases
|
$
|
500
|
|
Weighted average remaining operating lease term
|
10.3 years
|
|
|
Weighted average operating lease discount rate
|
3.4
|
%
|
Years Ending December 31,
|
|
Amount
|
||
(in thousands)
|
|
|
||
2020
|
|
$
|
520
|
|
2021
|
|
529
|
|
|
2022
|
|
537
|
|
|
2023
|
|
539
|
|
|
2024
|
|
539
|
|
|
Thereafter
|
|
2,815
|
|
|
Total lease payments
|
|
5,479
|
|
|
Less: Imputed interest
|
|
(876
|
)
|
|
Present value of lease liabilities
|
|
$
|
4,603
|
|
9.
|
Income Tax Expense
|
|
Years Ended December 31,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Current tax expense
|
$
|
6,196
|
|
|
$
|
5,752
|
|
Deferred tax expense (benefit)
|
(556
|
)
|
|
(452
|
)
|
||
Income tax expense
|
$
|
5,640
|
|
|
$
|
5,300
|
|
|
December 31,
|
||||||||||||
|
2019
|
|
2018
|
||||||||||
(dollars in thousands)
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||
Income before income tax expense
|
$
|
30,464
|
|
|
100.0
|
%
|
|
$
|
28,356
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
||||||
U.S. federal income tax expense
|
6,397
|
|
|
21.0
|
%
|
|
5,955
|
|
|
21.0
|
%
|
||
Nontaxable income
|
(803
|
)
|
|
(2.7
|
)%
|
|
(765
|
)
|
|
(2.7
|
)%
|
||
Nondeductible expenses
|
22
|
|
|
0.1
|
%
|
|
34
|
|
|
0.1
|
%
|
||
Other
|
24
|
|
|
0.1
|
%
|
|
76
|
|
|
0.3
|
%
|
||
Income tax expense
|
$
|
5,640
|
|
|
18.5
|
%
|
|
$
|
5,300
|
|
|
18.7
|
%
|
|
December 31,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Depreciation
|
$
|
(1,467
|
)
|
|
$
|
(1,481
|
)
|
FHLB stock dividends
|
(16
|
)
|
|
(13
|
)
|
||
Other
|
—
|
|
|
(18
|
)
|
||
Gross deferred tax liability
|
(1,483
|
)
|
|
(1,512
|
)
|
||
Allowance for loan losses
|
2,920
|
|
|
2,572
|
|
||
Allowance for operational losses
|
36
|
|
|
47
|
|
||
Health insurance self fund
|
208
|
|
|
212
|
|
||
Deferred compensation
|
762
|
|
|
689
|
|
||
Unrealized loss on securities
|
6
|
|
|
1,996
|
|
||
Equity security valuation
|
14
|
|
|
45
|
|
||
Advance payment
|
187
|
|
|
224
|
|
||
Accrued bonus
|
139
|
|
|
—
|
|
||
Other
|
152
|
|
|
126
|
|
||
Gross deferred tax asset
|
4,424
|
|
|
5,911
|
|
||
Net deferred tax asset (liability)
|
$
|
2,941
|
|
|
$
|
4,399
|
|
10.
|
Employee Benefits
|
11.
|
Stock-Based Compensation Plans
|
|
Stock Options
|
|||||||
|
Number
of
Shares
|
|
Exercise
Price
Range
|
|
Weighted
Average
Price
|
|||
Outstanding - December 31, 2017
|
33,500
|
|
|
$12.32 - $17.33
|
|
$
|
14.56
|
|
Exercised(1)
|
(5,500
|
)
|
|
$12.32 - $14.31
|
|
$
|
13.04
|
|
Outstanding - December 31, 2018
|
28,000
|
|
|
$12.32 - $17.33
|
|
$
|
14.85
|
|
Exercised(2)
|
(7,500
|
)
|
|
$12.32
|
|
$
|
12.32
|
|
Outstanding - December 31, 2019
|
20,500
|
|
|
$14.31 - $17.33
|
|
$
|
15.78
|
|
(1)
|
A total of 490 shares of the Company’s common stock were surrendered in lieu of payment of a portion of the cash exercise price for options exercised during 2018, resulting in the net issuance upon exercise of an aggregate of 5,010 shares of the Company’s common stock.
|
(2)
|
A total of 300 shares of the Company’s common stock were surrendered in lieu of payment of a portion of the cash exercise price for options exercised during 2019, resulting in the net issuance upon exercise of an aggregate of 7,200 shares of the Company’s common stock.
|
|
|
|
|
|
|
|
|
|
|
Nonvested Restricted Stock
|
||||
|
|
Number of Shares
|
|
Weighted Average Grant Date Fair Value
|
||
Nonvested - December 31, 2017
|
|
21,650
|
|
$
|
28.41
|
|
Granted
|
|
6,750
|
|
$
|
37.49
|
|
Vested
|
|
(7,210)
|
|
$
|
26.06
|
|
Nonvested - December 31, 2018
|
|
21,190
|
|
$
|
32.10
|
|
Granted
|
|
5,975
|
|
$
|
48.15
|
|
Vested
|
|
(6,560)
|
|
$
|
30.26
|
|
Nonvested - December 31, 2019
|
|
20,605
|
|
$
|
37.34
|
|
|
Years Ended December 31,
|
||||||
(dollars in thousands)
|
2019
|
|
2018
|
||||
Share-based board compensation earned
|
$
|
87
|
|
|
$
|
96
|
|
|
|
|
|
||||
Issuance of shares of common stock as board compensation:
|
|
|
|
||||
Number of shares issued
|
2,368
|
|
2,452
|
||||
Equity impact of shares issued
|
$
|
96
|
|
|
$
|
92
|
|
12.
|
Self-Insurance
|
13.
|
Off-Balance Sheet Contractual Obligations
|
14.
|
Fair Value
|
(in thousands)
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
||||||||
Loans HFS
|
$
|
5,089
|
|
|
$
|
—
|
|
|
$
|
5,089
|
|
|
$
|
—
|
|
Securities AFS:
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities
|
235,671
|
|
|
—
|
|
|
235,671
|
|
|
—
|
|
||||
U.S. agency securities
|
7,144
|
|
|
—
|
|
|
7,144
|
|
|
—
|
|
||||
Municipal bonds
|
92,758
|
|
|
—
|
|
|
92,758
|
|
|
—
|
|
||||
U.S. Treasury securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Equity securities
|
3,936
|
|
|
3,936
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
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
|
|
|
—
|
|
|
—
|
|
(in thousands)
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
||||||||
Impaired loans
|
$
|
9,454
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,454
|
|
Foreclosed assets
|
1,128
|
|
|
—
|
|
|
—
|
|
|
1,128
|
|
||||
|
|
|
|
|
|
|
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Impaired loans
|
$
|
19,235
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
19,235
|
|
Foreclosed assets
|
646
|
|
|
—
|
|
|
—
|
|
|
646
|
|
(in thousands)
|
Carrying
Amount
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
$
|
25,937
|
|
|
$
|
25,937
|
|
|
$
|
25,937
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest-bearing deposits in other banks
|
107,355
|
|
|
107,355
|
|
|
107,355
|
|
|
—
|
|
|
—
|
|
|||||
Securities AFS
|
335,573
|
|
|
335,573
|
|
|
—
|
|
|
335,573
|
|
|
—
|
|
|||||
Equity securities
|
3,936
|
|
|
3,936
|
|
|
3,936
|
|
|
—
|
|
|
—
|
|
|||||
Nonmarketable equity securities
|
1,350
|
|
|
1,350
|
|
|
—
|
|
|
1,350
|
|
|
—
|
|
|||||
Loans HFS
|
5,089
|
|
|
5,089
|
|
|
—
|
|
|
5,089
|
|
|
—
|
|
|||||
Loans HFI, net of allowance
|
1,424,987
|
|
|
1,426,163
|
|
|
—
|
|
|
—
|
|
|
1,426,163
|
|
|||||
Accrued interest receivable
|
5,251
|
|
|
5,251
|
|
|
—
|
|
|
—
|
|
|
5,251
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
1,721,120
|
|
|
1,721,286
|
|
|
—
|
|
|
1,721,286
|
|
|
—
|
|
|||||
Accrued interest payable
|
2,222
|
|
|
2,222
|
|
|
—
|
|
|
2,222
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
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
|
|
|
—
|
|
15.
|
Regulatory Capital Requirements
|
|
|
|
|
|
Regulatory Requirements
|
|||||||||||||||
|
Actual
|
|
Minimum
|
|
Minimum Plus CCB
|
|||||||||||||||
(dollars in thousands)
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Risk-Based Capital
|
$
|
238,021
|
|
|
16.23
|
%
|
|
$
|
117,325
|
|
|
8.00
|
%
|
|
$
|
153,989
|
|
|
10.50
|
%
|
Tier I Risk-Based Capital
|
$
|
224,084
|
|
|
15.28
|
%
|
|
$
|
87,994
|
|
|
6.00
|
%
|
|
$
|
124,658
|
|
|
8.50
|
%
|
Common Equity Tier I Capital
|
$
|
224,084
|
|
|
15.28
|
%
|
|
$
|
65,995
|
|
|
4.50
|
%
|
|
$
|
102,660
|
|
|
7.00
|
%
|
Tier I Leverage Capital
|
$
|
224,084
|
|
|
11.47
|
%
|
|
$
|
78,114
|
|
|
4.00
|
%
|
|
$
|
78,114
|
|
|
4.00
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
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
|
%
|
|
$
|
73,874
|
|
|
4.00
|
%
|
|
Actual
|
|||||
(dollars in thousands)
|
Amount
|
|
Ratio
|
|||
December 31, 2019
|
|
|
|
|||
Total Risk-Based Capital
|
$
|
264,313
|
|
|
18.02
|
%
|
Tier I Risk-Based Capital
|
$
|
250,376
|
|
|
17.07
|
%
|
Common Equity Tier I Capital
|
$
|
250,376
|
|
|
17.07
|
%
|
Tier I Leverage Capital
|
$
|
250,376
|
|
|
12.82
|
%
|
|
|
|
|
|||
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
|
%
|
16.
|
Equity Events
|
17.
|
Earnings Per Common Share
|
|
For the Years Ended
|
||||||
|
December 31,
|
||||||
(in thousands, except share amounts)
|
2019
|
|
2018
|
||||
Numerator:
|
|
|
|
||||
Net income - basic
|
$
|
24,824
|
|
|
$
|
23,056
|
|
Net income - diluted
|
$
|
24,824
|
|
|
$
|
23,056
|
|
|
|
|
|
||||
Denominator:
|
|
|
|
||||
Weighted average shares outstanding - basic
|
7,072,689
|
|
|
6,716,943
|
|
||
Plus: Effect of Directors Stock Compensation Program
|
1,554
|
|
|
2,368
|
|
||
Plus: Effect of stock options and restricted stock
|
41,271
|
|
|
36,791
|
|
||
Weighted average shares outstanding - diluted
|
7,115,514
|
|
|
6,756,102
|
|
||
|
|
|
|
||||
Earnings per common share:
|
|
|
|
||||
Basic
|
$
|
3.51
|
|
|
$
|
3.43
|
|
Diluted
|
$
|
3.49
|
|
|
$
|
3.41
|
|
18.
|
Quarterly Results of Operations (Unaudited)
|
|
2019
|
||||||||||||||
(in thousands, except per share data)
|
4th Quarter
|
|
3rd Quarter
|
|
2nd Quarter
|
|
1st Quarter
|
||||||||
Interest and dividend income
|
$
|
18,784
|
|
|
$
|
18,781
|
|
|
$
|
18,256
|
|
|
$
|
17,904
|
|
Interest expense
|
2,441
|
|
|
2,587
|
|
|
2,605
|
|
|
2,452
|
|
||||
Net interest income
|
16,343
|
|
|
16,194
|
|
|
15,651
|
|
|
15,452
|
|
||||
Provision for loan losses
|
378
|
|
|
378
|
|
|
529
|
|
|
526
|
|
||||
Net interest income after provision for loan losses
|
15,965
|
|
|
15,816
|
|
|
15,122
|
|
|
14,926
|
|
||||
Noninterest income
|
4,189
|
|
|
4,386
|
|
|
4,099
|
|
|
3,296
|
|
||||
Operating expenses
|
11,888
|
|
|
11,885
|
|
|
12,404
|
|
|
11,158
|
|
||||
Income tax expense
|
1,523
|
|
|
1,470
|
|
|
1,279
|
|
|
1,368
|
|
||||
Net income
|
$
|
6,743
|
|
|
$
|
6,847
|
|
|
$
|
5,538
|
|
|
$
|
5,696
|
|
Earnings per share
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.92
|
|
|
$
|
0.94
|
|
|
$
|
0.79
|
|
|
$
|
0.86
|
|
Diluted
|
$
|
0.92
|
|
|
$
|
0.93
|
|
|
$
|
0.78
|
|
|
$
|
0.85
|
|
|
2018
|
||||||||||||||
(in thousands, except per share data)
|
4th Quarter
|
|
3rd Quarter
|
|
2nd Quarter
|
|
1st Quarter
|
||||||||
Interest and dividend income
|
$
|
17,680
|
|
|
$
|
17,266
|
|
|
$
|
16,369
|
|
|
$
|
15,572
|
|
Interest expense
|
2,215
|
|
|
1,971
|
|
|
1,803
|
|
|
1,662
|
|
||||
Net interest income
|
15,465
|
|
|
15,295
|
|
|
14,566
|
|
|
13,910
|
|
||||
Provision for loan losses
|
526
|
|
|
526
|
|
|
526
|
|
|
411
|
|
||||
Net interest income after provision for loan losses
|
14,939
|
|
|
14,769
|
|
|
14,040
|
|
|
13,499
|
|
||||
Noninterest income
|
3,767
|
|
|
3,941
|
|
|
3,665
|
|
|
3,157
|
|
||||
Operating expenses
|
10,986
|
|
|
11,181
|
|
|
10,947
|
|
|
10,307
|
|
||||
Income tax expense
|
1,569
|
|
|
1,387
|
|
|
1,226
|
|
|
1,118
|
|
||||
Net income
|
$
|
6,151
|
|
|
$
|
6,142
|
|
|
$
|
5,532
|
|
|
$
|
5,231
|
|
Earnings per share
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.92
|
|
|
$
|
0.91
|
|
|
$
|
0.82
|
|
|
$
|
0.78
|
|
Diluted
|
$
|
0.91
|
|
|
$
|
0.91
|
|
|
$
|
0.82
|
|
|
$
|
0.77
|
|
19.
|
Subsequent Events
|
20.
|
Parent Company Financial Statements
|
(dollars in thousands, except share amounts)
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
|||||
ASSETS
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
26,264
|
|
|
$
|
3,711
|
|
Interest-bearing deposits in subsidiary bank
|
|
—
|
|
|
8,000
|
|
||
Investment in subsidiary bank
|
|
225,606
|
|
|
192,756
|
|
||
Investment in Red River Statutory Trust II
|
|
—
|
|
|
93
|
|
||
Investment in Red River Statutory Trust III
|
|
—
|
|
|
93
|
|
||
Investment in FBT Capital Trust I
|
|
—
|
|
|
155
|
|
||
Other assets
|
|
28
|
|
|
236
|
|
||
Total Assets
|
|
$
|
251,898
|
|
|
$
|
205,044
|
|
LIABILITIES
|
|
|
|
|
||||
Debentures payable to Red River Statutory Trust II
|
|
$
|
—
|
|
|
$
|
3,093
|
|
Debentures payable to Red River Statutory Trust III
|
|
—
|
|
|
3,093
|
|
||
Debentures payable to FBT Capital Trust I
|
|
—
|
|
|
5,155
|
|
||
Total Liabilities
|
|
—
|
|
|
11,341
|
|
||
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 - 7,306,221 and 6,627,358 shares |
|
68,082
|
|
|
41,094
|
|
||
Additional paid-in capital
|
|
1,269
|
|
|
1,042
|
|
||
Retained earnings
|
|
182,571
|
|
|
159,073
|
|
||
Accumulated other comprehensive income (loss)
|
|
(24
|
)
|
|
(7,506
|
)
|
||
Total Stockholders' Equity
|
|
251,898
|
|
|
193,703
|
|
||
Total Liabilities and Stockholders' Equity
|
|
$
|
251,898
|
|
|
$
|
205,044
|
|
(in thousands)
|
|
Years ended December 31,
|
||||||
|
2019
|
|
2018
|
|||||
INCOME
|
|
|
|
|
||||
Interest and dividend income from subsidiaries
|
|
$
|
428
|
|
|
$
|
495
|
|
Total income
|
|
428
|
|
|
495
|
|
||
EXPENSES
|
|
|
|
|
||||
Interest on junior subordinated debentures
|
|
385
|
|
|
558
|
|
||
Technology expenses
|
|
76
|
|
|
1
|
|
||
Legal and professional expenses
|
|
575
|
|
|
291
|
|
||
Advertising
|
|
3
|
|
|
—
|
|
||
Other operating expenses
|
|
78
|
|
|
34
|
|
||
Total expenses
|
|
1,117
|
|
|
884
|
|
||
Income tax expense (benefit)
|
|
(145
|
)
|
|
(74
|
)
|
||
Income (Loss) Before Equity in Undistributed Earnings of Subsidiaries
|
|
(544
|
)
|
|
(315
|
)
|
||
Equity in undistributed earnings of subsidiaries
|
|
25,368
|
|
|
23,371
|
|
||
Net Income
|
|
$
|
24,824
|
|
|
$
|
23,056
|
|
(in thousands)
|
|
Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
|||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
||||
Net income
|
|
$
|
24,824
|
|
|
$
|
23,056
|
|
Adjustments to reconcile net income to net cash
provided by (used in) operating activities: |
|
|
|
|
||||
Amortization of debt issuance costs
|
|
38
|
|
|
3
|
|
||
Undistributed earnings of subsidiaries
|
|
(25,368
|
)
|
|
(23,371
|
)
|
||
Other operating activities, net
|
|
834
|
|
|
88
|
|
||
Net cash provided by (used in) operating activities
|
|
328
|
|
|
(224
|
)
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
||||
(Increase) decrease interest-bearing deposits in subsidiary bank
|
|
8,000
|
|
|
9,000
|
|
||
Net cash provided by (used in) investing activities
|
|
8,000
|
|
|
9,000
|
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
||||
Redemption of junior subordinated debentures
|
|
(11,341
|
)
|
|
—
|
|
||
Proceeds from exercise of stock options
|
|
80
|
|
|
53
|
|
||
Payment to repurchase common stock
|
|
—
|
|
|
(4,590
|
)
|
||
Proceeds from initial public offering, net
|
|
26,812
|
|
|
—
|
|
||
Cash dividends
|
|
(1,326
|
)
|
|
(1,009
|
)
|
||
Net cash provided by (used in) financing activities
|
|
14,225
|
|
|
(5,546
|
)
|
||
Net change in cash and cash equivalents
|
|
22,553
|
|
|
3,230
|
|
||
Cash and cash equivalents - beginning of year
|
|
3,711
|
|
|
481
|
|
||
Cash and cash equivalents - end of year
|
|
$
|
26,264
|
|
|
$
|
3,711
|
|
Item 15.
|
Exhibits and Financial Statement Schedules
|
(a)
|
The following documents are filed as part of this Report:
|
(1)
|
The following consolidated financial statements are incorporated by reference from "Item 8. Financial Statements and Supplementary Data":
|
(2)
|
All supplemental financial statement schedules are omitted because they are either not applicable or not required, or because the required information is contained in the consolidated financial statements or the notes thereto which is included in Part II, Item 8 of this Annual Report on Form 10-K.
|
(3)
|
Exhibits required to be filed are included in Item 15(b) below.
|
(b)
|
Exhibits:
|
NUMBER
|
|
DESCRIPTION
|
3.1
|
|
|
3.2
|
|
|
4.1
|
|
|
4.2
|
|
|
|
|
The other instruments defining the rights of the long-term debt securities of the Registrant and its subsidiaries are omitted pursuant to section (b)(4)(iii)(A) of Item 601 of Regulation S-K. The Registrant hereby agrees to furnish copies of these instruments to the SEC upon request.
|
10.1
|
|
|
10.2
|
|
|
10.3
|
|
|
10.4
|
|
|
10.5
|
|
|
10.6
|
|
|
10.7
|
|
|
10.8
|
|
|
10.9
|
|
|
10.10
|
|
|
RED RIVER BANCSHARES, INC.
|
|
|
|
|
Date: March 27, 2020
|
By:
|
/s/ R. Blake Chatelain
|
|
|
R. Blake Chatelain
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
Date: March 27, 2020
|
By:
|
/s/ R. Blake Chatelain
|
|
|
R. Blake Chatelain
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
|
|
|
Date: March 27, 2020
|
By:
|
/s/ Isabel V. Carriere
|
|
|
Isabel V. Carriere, CPA, CGMA
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
(Principal Financial Officer and Principal Accounting Officer)
|
|
|
|
Date: March 27, 2020
|
By:
|
/s/ John C. Simpson
|
|
|
John C. Simpson
|
|
|
Chairman of the Board
|
|
|
|
Date: March 27, 2020
|
By:
|
/s/ M. Scott Ashbrook
|
|
|
M. Scott Ashbrook
|
|
|
Director
|
|
|
|
Date: March 27, 2020
|
By:
|
/s/ Kirk D. Cooper
|
|
|
Kirk D. Cooper
|
|
|
Director
|
|
|
|
Date: March 27, 2020
|
By:
|
/s/ F. William Hackmeyer, Jr.
|
|
|
F. William Hackmeyer, Jr.
|
|
|
Director
|
|
|
|
Date: March 27, 2020
|
By:
|
/s/ Barry D. Hines
|
|
|
Barry D. Hines
|
|
|
Director
|
|
|
|
Date: March 27, 2020
|
By:
|
/s/ Robert A. Nichols
|
|
|
Robert A. Nichols
|
|
|
Director
|
|
|
|
Date: March 27, 2020
|
By:
|
/s/ Willie P. Obey
|
|
|
Willie P. Obey
|
|
|
Director
|
|
|
|
Date: March 27, 2020
|
By:
|
/s/ Teddy R. Price
|
|
|
Teddy R. Price
|
|
|
Director
|
|
|
|
Date: March 27, 2020
|
By:
|
/s/ Don L. Thompson
|
|
|
Don L. Thompson
|
|
|
Director
|
|
|
|
Date: March 27, 2020
|
By:
|
/s/ H. Lindsey Torbett
|
|
|
H. Lindsey Torbett, CPA, CFP
|
|
|
Director
|
|
|
Exhibit 4.2
|
|
|
Exhibit 23.1
|
1.
|
Registration Statement (Form S-8 No. 333-232404) pertaining to the Red River Bancshares, Inc. 2018 Equity Incentive Plan and the Red River Bancshares, Inc. 2008 Equity Incentive Plan; and
|
2.
|
Registration Statement (Form S-8 No. 333-236300) pertaining to Red River Bancshares, Inc. and Red River Bank Amended and Restated Director Compensation Program;
|
|
|
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: March 27, 2020
|
By:
|
/s/ R. Blake Chatelain
|
|
|
R. Blake Chatelain
|
|
|
President and Chief Executive Officer
|
|
|
(Principal 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: March 27, 2020
|
By:
|
/s/ Isabel V. Carriere
|
|
|
Isabel V. Carriere, CPA, CGMA
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
(Principal Financial Officer and Principal Accounting Officer)
|
|
|
Exhibit 32.1
|
Date: March 27, 2020
|
By:
|
/s/ R. Blake Chatelain
|
|
|
R. Blake Chatelain
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
|
|
Exhibit 32.2
|
Date: March 27, 2020
|
By:
|
/s/ Isabel V. Carriere
|
|
|
Isabel V. Carriere, CPA, CGMA
|
|
|
Executive Vice President and Chief Financial Officer
|
|
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(Principal Financial Officer and Principal Accounting Officer)
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