California
|
|
77-0539125
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
7100 N. Financial Dr, Suite 101, Fresno, California
|
|
93720
|
(Address of principal executive offices)
|
|
(Zip code)
|
Large accelerated filer
o
|
|
Accelerated filer
o
|
|
|
|
Non-accelerated filer
o
|
|
Smaller reporting company
x
|
(Do not check if a smaller reporting company)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except share amounts)
|
|
March 31, 2014
|
|
December 31, 2013
|
||||
|
|
(Unaudited)
|
|
|
||||
ASSETS
|
|
|
|
|
|
|
||
Cash and due from banks
|
|
$
|
28,690
|
|
|
$
|
25,878
|
|
Interest-earning deposits in other banks
|
|
66,581
|
|
|
85,956
|
|
||
Federal funds sold
|
|
260
|
|
|
218
|
|
||
Total cash and cash equivalents
|
|
95,531
|
|
|
112,052
|
|
||
Available-for-sale investment securities (Amortized cost of $419,372 at March 31, 2014 and $447,108 at December 31, 2013)
|
|
422,073
|
|
|
443,224
|
|
||
Held-to-maturity investment securities (Fair value of $32,047 at March 31, 2014)
|
|
31,589
|
|
|
—
|
|
||
Loans, less allowance for credit losses of $8,321 at March 31, 2014 and $9,208 at December 31, 2013
|
|
506,100
|
|
|
503,149
|
|
||
Bank premises and equipment, net
|
|
10,561
|
|
|
10,541
|
|
||
Other real estate owned
|
|
—
|
|
|
190
|
|
||
Bank owned life insurance
|
|
20,489
|
|
|
19,443
|
|
||
Federal Home Loan Bank stock
|
|
4,499
|
|
|
4,499
|
|
||
Goodwill
|
|
29,917
|
|
|
29,917
|
|
||
Core deposit intangibles
|
|
1,596
|
|
|
1,680
|
|
||
Accrued interest receivable and other assets
|
|
17,147
|
|
|
20,940
|
|
||
Total assets
|
|
$
|
1,139,502
|
|
|
$
|
1,145,635
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
||
Deposits:
|
|
|
|
|
|
|
||
Non-interest bearing
|
|
$
|
354,377
|
|
|
$
|
356,392
|
|
Interest bearing
|
|
636,619
|
|
|
647,751
|
|
||
Total deposits
|
|
990,996
|
|
|
1,004,143
|
|
||
|
|
|
|
|
||||
Junior subordinated deferrable interest debentures
|
|
5,155
|
|
|
5,155
|
|
||
Accrued interest payable and other liabilities
|
|
17,183
|
|
|
16,294
|
|
||
Total liabilities
|
|
1,013,334
|
|
|
1,025,592
|
|
||
Commitments and contingencies (Note 9)
|
|
|
|
|
|
|
||
Shareholders’ equity:
|
|
|
|
|
|
|
||
Preferred stock, no par value, $1,000 per share liquidation preference; 10,000,000 shares authorized, none issued and outstanding
|
|
—
|
|
|
—
|
|
||
Common stock, no par value; 80,000,000 shares authorized; issued and outstanding: 10,925,085 at March 31, 2014 and 10,914,680 at December 31, 2013
|
|
54,016
|
|
|
53,981
|
|
||
Retained earnings
|
|
70,418
|
|
|
68,348
|
|
||
Accumulated other comprehensive income (loss), net of tax
|
|
1,734
|
|
|
(2,286
|
)
|
||
Total shareholders’ equity
|
|
126,168
|
|
|
120,043
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
1,139,502
|
|
|
$
|
1,145,635
|
|
|
|
For the Quarter Ended March 31,
|
||||||
(In thousands, except share and per share amounts)
|
|
2014
|
|
2013
|
||||
INTEREST INCOME:
|
|
|
|
|
|
|
||
Interest and fees on loans
|
|
$
|
7,618
|
|
|
$
|
5,411
|
|
Interest on deposits in other banks
|
|
53
|
|
|
30
|
|
||
Interest and dividends on investment securities:
|
|
|
|
|
||||
Taxable
|
|
1,347
|
|
|
401
|
|
||
Exempt from Federal income taxes
|
|
1,402
|
|
|
1,338
|
|
||
Total interest income
|
|
10,420
|
|
|
7,180
|
|
||
INTEREST EXPENSE:
|
|
|
|
|
|
|
||
Interest on deposits
|
|
297
|
|
|
293
|
|
||
Interest on junior subordinated deferrable interest debentures
|
|
24
|
|
|
25
|
|
||
Other
|
|
—
|
|
|
17
|
|
||
Total interest expense
|
|
321
|
|
|
335
|
|
||
Net interest income before provision for credit losses
|
|
10,099
|
|
|
6,845
|
|
||
PROVISION FOR CREDIT LOSSES
|
|
—
|
|
|
—
|
|
||
Net interest income after provision for credit losses
|
|
10,099
|
|
|
6,845
|
|
||
NON-INTEREST INCOME:
|
|
|
|
|
|
|
||
Service charges
|
|
808
|
|
|
698
|
|
||
Appreciation in cash surrender value of bank owned life insurance
|
|
146
|
|
|
96
|
|
||
Interchange fees
|
|
287
|
|
|
196
|
|
||
Net realized gains on sales of investment securities
|
|
269
|
|
|
813
|
|
||
Federal Home Loan Bank dividends
|
|
76
|
|
|
22
|
|
||
Loan placement fees
|
|
58
|
|
|
165
|
|
||
Other income
|
|
333
|
|
|
236
|
|
||
Total non-interest income
|
|
1,977
|
|
|
2,226
|
|
||
NON-INTEREST EXPENSES:
|
|
|
|
|
|
|
||
Salaries and employee benefits
|
|
4,911
|
|
|
4,019
|
|
||
Occupancy and equipment
|
|
1,130
|
|
|
901
|
|
||
Data processing
|
|
450
|
|
|
303
|
|
||
Regulatory assessments
|
|
198
|
|
|
143
|
|
||
ATM/Debit card expenses
|
|
150
|
|
|
109
|
|
||
License and maintenance contracts
|
|
130
|
|
|
99
|
|
||
Advertising
|
|
155
|
|
|
142
|
|
||
Audit and accounting fees
|
|
132
|
|
|
135
|
|
||
Internet banking expense
|
|
129
|
|
|
72
|
|
||
Amortization of core deposit intangibles
|
|
84
|
|
|
50
|
|
||
Other
|
|
1,267
|
|
|
960
|
|
||
Total non-interest expenses
|
|
8,736
|
|
|
6,933
|
|
||
Income before provision for income taxes
|
|
3,340
|
|
|
2,138
|
|
||
Provision for income taxes
|
|
724
|
|
|
355
|
|
||
Net income
|
|
$
|
2,616
|
|
|
$
|
1,783
|
|
Preferred stock dividends and accretion
|
|
—
|
|
|
87
|
|
||
Net income available to common shareholders
|
|
$
|
2,616
|
|
|
$
|
1,696
|
|
Net income per common share:
|
|
|
|
|
|
|
||
Basic earnings per share
|
|
$
|
0.24
|
|
|
$
|
0.18
|
|
Weighted average common shares used in basic computation
|
|
10,915,945
|
|
|
9,558,985
|
|
||
Diluted earnings per share
|
|
$
|
0.24
|
|
|
$
|
0.18
|
|
Weighted average common shares used in diluted computation
|
|
10,998,630
|
|
|
9,604,841
|
|
||
Cash dividend per common share
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
|
For the Quarter Ended March 31,
|
||||||
(In thousands)
|
|
2014
|
|
2013
|
||||
Net income
|
|
$
|
2,616
|
|
|
$
|
1,783
|
|
Other Comprehensive Income (Loss):
|
|
|
|
|
||||
Unrealized gains (losses) on securities:
|
|
|
|
|
||||
Unrealized holdings gains (losses) arising and transferred during the period
|
|
7,017
|
|
|
(2,071
|
)
|
||
Less: reclassification for net gains included in net income
|
|
269
|
|
|
813
|
|
||
Amortization of net unrealized gains transferred during the period
|
|
(18
|
)
|
|
—
|
|
||
Other comprehensive income (loss), before tax
|
|
6,730
|
|
|
(2,884
|
)
|
||
Tax (expense) benefit related to items of other comprehensive income
|
|
(2,710
|
)
|
|
1,187
|
|
||
Total other comprehensive income (loss)
|
|
4,020
|
|
|
(1,697
|
)
|
||
Comprehensive income
|
|
$
|
6,636
|
|
|
$
|
86
|
|
|
|
For the Quarter Ended March 31,
|
||||||
(In thousands)
|
|
2014
|
|
2013
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
||
Net income
|
|
$
|
2,616
|
|
|
$
|
1,783
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|||
Net decrease in deferred loan fees
|
|
(43
|
)
|
|
(146
|
)
|
||
Depreciation
|
|
330
|
|
|
250
|
|
||
Accretion
|
|
(189
|
)
|
|
(180
|
)
|
||
Amortization
|
|
1,858
|
|
|
2,367
|
|
||
Stock-based compensation
|
|
25
|
|
|
25
|
|
||
Net realized gains on sales of available-for-sale investment securities
|
|
(269
|
)
|
|
(813
|
)
|
||
Net loss on disposal of premises and equipment
|
|
66
|
|
|
—
|
|
||
Net gain on sale of other real estate owned
|
|
(64
|
)
|
|
—
|
|
||
Increase in bank owned life insurance, net of expenses
|
|
(146
|
)
|
|
(96
|
)
|
||
Net decrease in accrued interest receivable and other assets
|
|
645
|
|
|
728
|
|
||
Net (increase) decrease in accrued interest payable and other liabilities
|
|
(1,367
|
)
|
|
(807
|
)
|
||
Provision for (benefit from) deferred income taxes
|
|
437
|
|
|
(153
|
)
|
||
Net cash provided by operating activities
|
|
3,899
|
|
|
2,958
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
||
Purchases of available-for-sale investment securities
|
|
(40,549
|
)
|
|
(7,887
|
)
|
||
Proceeds from sales or calls of available-for-sale investment securities
|
|
26,716
|
|
|
22,157
|
|
||
Proceeds from maturity and principal repayments of available-for-sale investment securities
|
|
11,066
|
|
|
23,585
|
|
||
Net (increase) decrease in loans
|
|
(2,909
|
)
|
|
3,855
|
|
||
Proceeds from sale of other real estate owned
|
|
254
|
|
|
—
|
|
||
Purchases of premises and equipment
|
|
(415
|
)
|
|
(311
|
)
|
||
Purchases of bank owned life insurance
|
|
(900
|
)
|
|
—
|
|
||
Net cash (used in) provided by investing activities
|
|
(6,737
|
)
|
|
41,399
|
|
||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
||
Net decrease in demand, interest bearing and savings deposits
|
|
(9,577
|
)
|
|
(15,825
|
)
|
||
Net (decrease) increase in time deposits
|
|
(3,570
|
)
|
|
1,151
|
|
||
Repayments of short-term borrowings to Federal Home Loan Bank
|
|
—
|
|
|
(4,000
|
)
|
||
Proceeds from exercise of stock options
|
|
10
|
|
|
4
|
|
||
Cash dividend payments on common stock
|
|
(546
|
)
|
|
(478
|
)
|
||
Cash dividend payments on preferred stock
|
|
—
|
|
|
(87
|
)
|
||
Net cash used in financing activities
|
|
(13,683
|
)
|
|
(19,235
|
)
|
||
(Decrease) increase in cash and cash equivalents
|
|
(16,521
|
)
|
|
25,122
|
|
||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
|
112,052
|
|
|
52,956
|
|
||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
|
$
|
95,531
|
|
|
$
|
78,078
|
|
|
|
For the Quarter Ended March 31,
|
||||||
(In thousands)
|
|
2014
|
|
2013
|
||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:
|
|
|
|
|
|
|
||
Cash paid during the period for
:
|
|
|
|
|
|
|
||
Interest
|
|
$
|
330
|
|
|
$
|
395
|
|
Income taxes
|
|
$
|
250
|
|
|
$
|
330
|
|
Non-cash investing and financing activities:
|
|
|
|
|
|
|
||
Transfer of securities from available-for-sale to held-to-maturity
|
|
$
|
31,346
|
|
|
$
|
—
|
|
Unrealized gain on transfer of securities from available-for-sale to held-to-maturity
|
|
$
|
163
|
|
|
$
|
—
|
|
Accrued preferred stock dividends
|
|
$
|
—
|
|
|
$
|
87
|
|
Purchases of Available-for-sale investment securities, not yet settled
|
|
$
|
2,256
|
|
|
$
|
16,060
|
|
Pro Forma Results of Operations
|
|
For the Quarter
Ended March 31, |
||
(In thousands, except per share amounts)
|
|
2013
|
||
Net interest income
|
|
$
|
8,536
|
|
Provision for credit losses
|
|
147
|
|
|
Non-interest income
|
|
2,720
|
|
|
Non-interest expense
|
|
9,019
|
|
|
Income before provision for income taxes
|
|
2,090
|
|
|
Provision for income taxes
|
|
326
|
|
|
Net income
|
|
$
|
1,764
|
|
Basic earnings per share
|
|
$
|
0.15
|
|
Diluted earnings per share
|
|
$
|
0.15
|
|
|
|
March 31, 2014
|
||||||||||||||||||
|
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||||||
(In thousands)
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and due from banks
|
|
$
|
28,690
|
|
|
$
|
28,690
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28,690
|
|
Interest-earning deposits in other banks
|
|
66,581
|
|
|
66,581
|
|
|
—
|
|
|
—
|
|
|
66,581
|
|
|||||
Federal funds sold
|
|
260
|
|
|
260
|
|
|
—
|
|
|
—
|
|
|
260
|
|
|||||
Available-for-sale investment securities
|
|
422,073
|
|
|
7,548
|
|
|
414,525
|
|
|
—
|
|
|
422,073
|
|
|||||
Held-to-maturity investment securities
|
|
31,589
|
|
|
—
|
|
|
32,047
|
|
|
|
|
32,047
|
|
||||||
Loans, net
|
|
506,100
|
|
|
—
|
|
|
—
|
|
|
509,380
|
|
|
509,380
|
|
|||||
Federal Home Loan Bank stock
|
|
4,499
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|||||
Accrued interest receivable
|
|
4,523
|
|
|
22
|
|
|
2,623
|
|
|
1,878
|
|
|
4,523
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits
|
|
990,996
|
|
|
825,411
|
|
|
165,259
|
|
|
—
|
|
|
990,670
|
|
|||||
Junior subordinated deferrable interest debentures
|
|
5,155
|
|
|
—
|
|
|
—
|
|
|
2,775
|
|
|
2,775
|
|
|||||
Accrued interest payable
|
|
120
|
|
|
—
|
|
|
96
|
|
|
24
|
|
|
120
|
|
|
|
December 31, 2013
|
||||||||||||||||||
|
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||||||
(In thousands)
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
|
$
|
25,878
|
|
|
$
|
25,878
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
25,878
|
|
Interest-earning deposits in other banks
|
|
85,956
|
|
|
85,956
|
|
|
—
|
|
|
—
|
|
|
85,956
|
|
|||||
Federal funds sold
|
|
218
|
|
|
218
|
|
|
—
|
|
|
—
|
|
|
218
|
|
|||||
Available-for-sale investment securities
|
|
443,224
|
|
|
7,514
|
|
|
435,710
|
|
|
—
|
|
|
443,224
|
|
|||||
Loans, net
|
|
503,149
|
|
|
—
|
|
|
—
|
|
|
507,361
|
|
|
507,361
|
|
|||||
Federal Home Loan Bank stock
|
|
4,499
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|||||
Accrued interest receivable
|
|
5,026
|
|
|
21
|
|
|
2,976
|
|
|
2,029
|
|
|
5,026
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
1,004,143
|
|
|
834,864
|
|
|
169,065
|
|
|
—
|
|
|
1,003,929
|
|
|||||
Junior subordinated deferrable interest debentures
|
|
5,155
|
|
|
—
|
|
|
—
|
|
|
2,750
|
|
|
2,750
|
|
|||||
Accrued interest payable
|
|
129
|
|
|
—
|
|
|
105
|
|
|
24
|
|
|
129
|
|
Description
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Government agencies
|
|
$
|
17,975
|
|
|
$
|
—
|
|
|
$
|
17,975
|
|
|
$
|
—
|
|
Obligations of states and political subdivisions
|
|
124,514
|
|
|
—
|
|
|
124,514
|
|
|
—
|
|
||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
|
|
266,825
|
|
|
—
|
|
|
266,825
|
|
|
—
|
|
||||
Private label residential mortgage backed securities
|
|
5,211
|
|
|
—
|
|
|
5,211
|
|
|
—
|
|
||||
Other equity securities
|
|
7,548
|
|
|
7,548
|
|
|
—
|
|
|
—
|
|
||||
Total assets measured at fair value on a recurring basis
|
|
$
|
422,073
|
|
|
$
|
7,548
|
|
|
$
|
414,525
|
|
|
$
|
—
|
|
Description
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Impaired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial and industrial
|
|
$
|
200
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
200
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity loans and lines of credit
|
|
145
|
|
|
—
|
|
|
—
|
|
|
145
|
|
||||
Total impaired loans
|
|
345
|
|
|
—
|
|
|
—
|
|
|
345
|
|
||||
Total assets measured at fair value on a non-recurring basis
|
|
$
|
345
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
345
|
|
Description
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Government agencies
|
|
$
|
18,203
|
|
|
$
|
—
|
|
|
$
|
18,203
|
|
|
$
|
—
|
|
Obligations of states and political subdivisions
|
|
158,407
|
|
|
—
|
|
|
158,407
|
|
|
—
|
|
||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
|
|
253,709
|
|
|
—
|
|
|
253,709
|
|
|
—
|
|
||||
Private label residential mortgage backed securities
|
|
5,391
|
|
|
—
|
|
|
5,391
|
|
|
—
|
|
||||
Other equity securities
|
|
7,514
|
|
|
7,514
|
|
|
—
|
|
|
—
|
|
||||
Total assets measured at fair value on a recurring basis
|
|
$
|
443,224
|
|
|
$
|
7,514
|
|
|
$
|
435,710
|
|
|
$
|
—
|
|
Description
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Impaired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity loans and lines of credit
|
|
$
|
133
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
133
|
|
Total assets measured at fair value on a non-recurring basis
|
|
$
|
133
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
133
|
|
|
|
March 31, 2014
|
||||||||||||||
Available-for-Sale Securities
|
|
Amortized Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Estimated
Fair Value
|
||||||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Government agencies
|
|
$
|
17,968
|
|
|
$
|
47
|
|
|
$
|
(40
|
)
|
|
$
|
17,975
|
|
Obligations of states and political subdivisions
|
|
123,678
|
|
|
2,918
|
|
|
(2,082
|
)
|
|
124,514
|
|
||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
|
|
266,173
|
|
|
1,878
|
|
|
(1,226
|
)
|
|
266,825
|
|
||||
Private label residential mortgage backed securities
|
|
3,957
|
|
|
1,254
|
|
|
—
|
|
|
5,211
|
|
||||
Other equity securities
|
|
7,596
|
|
|
1
|
|
|
(49
|
)
|
|
7,548
|
|
||||
Total available-for-sale
|
|
$
|
419,372
|
|
|
$
|
6,098
|
|
|
$
|
(3,397
|
)
|
|
$
|
422,073
|
|
|
|
March 31, 2014
|
||||||||||||||
Held-to-Maturity Securities
|
|
Amortized Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Estimated
Fair Value
|
||||||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of states and political subdivisions
|
|
$
|
31,589
|
|
|
$
|
504
|
|
|
$
|
(46
|
)
|
|
$
|
32,047
|
|
|
|
December 31, 2013
|
||||||||||||||
Available-for-Sale Securities
|
|
Amortized Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Estimated
Fair Value
|
||||||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Government agencies
|
|
$
|
18,172
|
|
|
$
|
115
|
|
|
$
|
(84
|
)
|
|
$
|
18,203
|
|
Obligations of states and political subdivisions
|
|
162,018
|
|
|
2,906
|
|
|
(6,517
|
)
|
|
158,407
|
|
||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
|
|
254,978
|
|
|
1,075
|
|
|
(2,344
|
)
|
|
253,709
|
|
||||
Private label residential mortgage backed securities
|
|
4,344
|
|
|
1,047
|
|
|
—
|
|
|
5,391
|
|
||||
Other equity securities
|
|
7,596
|
|
|
2
|
|
|
(84
|
)
|
|
7,514
|
|
||||
Total available-for-sale
|
|
$
|
447,108
|
|
|
$
|
5,145
|
|
|
$
|
(9,029
|
)
|
|
$
|
443,224
|
|
|
|
For the Quarter Ended March 31,
|
||||||
Available-for-Sale Securities
|
|
2014
|
|
2013
|
||||
Proceeds from sales or calls
|
|
$
|
26,716
|
|
|
$
|
22,157
|
|
Gross realized gains from sales or calls
|
|
962
|
|
|
1,006
|
|
||
Gross realized losses from sales or calls
|
|
(693
|
)
|
|
(193
|
)
|
|
|
March 31, 2014
|
||||||||||||||||||||||
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
||||||||||||
Available-for-Sale Securities
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
||||||||||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Government agencies
|
|
$
|
1,812
|
|
|
$
|
(36
|
)
|
|
$
|
962
|
|
|
$
|
(4
|
)
|
|
$
|
2,774
|
|
|
$
|
(40
|
)
|
Obligations of states and political subdivisions
|
|
35,386
|
|
|
(899
|
)
|
|
20,566
|
|
|
(1,183
|
)
|
|
55,952
|
|
|
(2,082
|
)
|
||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
|
|
95,493
|
|
|
(871
|
)
|
|
20,229
|
|
|
(355
|
)
|
|
115,722
|
|
|
(1,226
|
)
|
||||||
Other equity securities
|
|
7,416
|
|
|
(49
|
)
|
|
—
|
|
|
—
|
|
|
7,416
|
|
|
(49
|
)
|
||||||
Total available-for-sale
|
|
$
|
140,107
|
|
|
$
|
(1,855
|
)
|
|
$
|
41,757
|
|
|
$
|
(1,542
|
)
|
|
$
|
181,864
|
|
|
$
|
(3,397
|
)
|
|
|
March 31, 2014
|
||||||||||||||||||||||
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
||||||||||||
Held-to-Maturity Securities
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
||||||||||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Obligations of states and political subdivisions
|
|
$
|
3,234
|
|
|
$
|
(46
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,234
|
|
|
$
|
(46
|
)
|
|
|
December 31, 2013
|
||||||||||||||||||||||
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
||||||||||||
Available-for-Sale Securities
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
||||||||||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Government agencies
|
|
$
|
4,132
|
|
|
$
|
(75
|
)
|
|
$
|
968
|
|
|
$
|
(9
|
)
|
|
$
|
5,100
|
|
|
$
|
(84
|
)
|
Obligations of states and political subdivisions
|
|
89,556
|
|
|
(5,007
|
)
|
|
15,015
|
|
|
(1,510
|
)
|
|
104,571
|
|
|
(6,517
|
)
|
||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
|
|
148,853
|
|
|
(2,070
|
)
|
|
19,199
|
|
|
(274
|
)
|
|
168,052
|
|
|
(2,344
|
)
|
||||||
Other equity securities
|
|
7,416
|
|
|
(84
|
)
|
|
—
|
|
|
—
|
|
|
7,416
|
|
|
(84
|
)
|
||||||
Total available-for-sale
|
|
$
|
249,957
|
|
|
$
|
(7,236
|
)
|
|
$
|
35,182
|
|
|
$
|
(1,793
|
)
|
|
$
|
285,139
|
|
|
$
|
(9,029
|
)
|
|
|
For the Quarter Ended March 31,
|
||||||
(In thousands)
|
|
2014
|
|
2013
|
||||
Beginning balance
|
|
$
|
800
|
|
|
$
|
783
|
|
Amounts related to credit loss for which an OTTI charge was not previously recognized
|
|
—
|
|
|
17
|
|
||
Increases to the amount related to credit loss for which OTTI was previously recognized
|
|
—
|
|
|
—
|
|
||
Realized losses for securities sold
|
|
—
|
|
|
—
|
|
||
Ending balance
|
|
$
|
800
|
|
|
$
|
800
|
|
|
|
March 31, 2014
|
||||||
Available-for-Sale Securities
|
|
Amortized Cost
|
|
Estimated Fair
Value
|
||||
Within one year
|
|
$
|
—
|
|
|
$
|
—
|
|
After one year through five years
|
|
2,667
|
|
|
2,947
|
|
||
After five years through ten years
|
|
14,968
|
|
|
15,287
|
|
||
After ten years
|
|
106,043
|
|
|
106,280
|
|
||
|
|
123,678
|
|
|
124,514
|
|
||
Investment securities not due at a single maturity date:
|
|
|
|
|
|
|
||
U.S. Government agencies
|
|
17,968
|
|
|
17,975
|
|
||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
|
|
266,173
|
|
|
266,825
|
|
||
Private label residential mortgage backed securities
|
|
3,957
|
|
|
5,211
|
|
||
Other equity securities
|
|
7,596
|
|
|
7,548
|
|
||
Total available-for-sale
|
|
$
|
419,372
|
|
|
$
|
422,073
|
|
|
|
March 31, 2014
|
||||||
Held-to-Maturity Securities
|
|
Amortized Cost
|
|
Estimated Fair
Value |
||||
After ten years
|
|
$
|
31,589
|
|
|
$
|
32,047
|
|
Loan Type (Dollars in thousands)
|
|
March 31, 2014
|
|
% of Total
Loans
|
|
December 31, 2013
|
|
% of Total
Loans
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Commercial and industrial
|
|
$
|
87,353
|
|
|
17.0
|
%
|
|
$
|
87,082
|
|
|
17.0
|
%
|
Agricultural land and production
|
|
24,969
|
|
|
4.8
|
%
|
|
31,649
|
|
|
6.1
|
%
|
||
Total commercial
|
|
112,322
|
|
|
21.8
|
%
|
|
118,731
|
|
|
23.1
|
%
|
||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Owner occupied
|
|
159,343
|
|
|
31.0
|
%
|
|
156,781
|
|
|
30.6
|
%
|
||
Real estate construction and other land loans
|
|
37,081
|
|
|
7.2
|
%
|
|
42,329
|
|
|
8.3
|
%
|
||
Commercial real estate
|
|
90,794
|
|
|
17.6
|
%
|
|
86,117
|
|
|
16.8
|
%
|
||
Agricultural real estate
|
|
52,107
|
|
|
10.1
|
%
|
|
44,164
|
|
|
8.6
|
%
|
||
Other real estate
|
|
4,520
|
|
|
0.9
|
%
|
|
4,548
|
|
|
0.9
|
%
|
||
Total real estate
|
|
343,845
|
|
|
66.8
|
%
|
|
333,939
|
|
|
65.2
|
%
|
||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Equity loans and lines of credit
|
|
47,210
|
|
|
9.2
|
%
|
|
48,594
|
|
|
9.5
|
%
|
||
Consumer and installment
|
|
11,160
|
|
|
2.2
|
%
|
|
11,252
|
|
|
2.2
|
%
|
||
Total consumer
|
|
58,370
|
|
|
11.4
|
%
|
|
59,846
|
|
|
11.7
|
%
|
||
Deferred loan fees, net
|
|
(116
|
)
|
|
|
|
|
(159
|
)
|
|
|
|
||
Total gross loans
|
|
514,421
|
|
|
100.0
|
%
|
|
512,357
|
|
|
100.0
|
%
|
||
Allowance for credit losses
|
|
(8,321
|
)
|
|
|
|
|
(9,208
|
)
|
|
|
|
||
Total loans
|
|
$
|
506,100
|
|
|
|
|
|
$
|
503,149
|
|
|
|
|
|
|
March 31, 2014
|
|
December 31, 2013
|
||||
Real estate
|
|
$
|
428
|
|
|
$
|
2,465
|
|
Outstanding balance
|
|
$
|
428
|
|
|
$
|
2,465
|
|
Carrying amount, net of allowance of $0
|
|
$
|
428
|
|
|
$
|
2,465
|
|
|
For the Quarter
Ended March 31, |
||||||
|
2014
|
|
2013
|
||||
Balance at beginning of period
|
$
|
94
|
|
|
$
|
—
|
|
Additions
|
—
|
|
|
—
|
|
||
Accretion
|
(778
|
)
|
|
—
|
|
||
Reclassification from (to) non-accretable difference
|
692
|
|
|
—
|
|
||
Disposals
|
—
|
|
|
—
|
|
||
Balance at end of period
|
$
|
8
|
|
|
$
|
—
|
|
|
March 31, 2014
|
|
December 31, 2013
|
||||
Contractually required payments receivable at acquisition:
|
|
|
|
||||
Real estate
|
$
|
—
|
|
|
$
|
6,912
|
|
Total
|
$
|
—
|
|
|
$
|
6,912
|
|
Cash flows expected to be collected at acquisition
|
$
|
—
|
|
|
$
|
2,681
|
|
Fair value of in acquired loans at acquisition
|
$
|
—
|
|
|
$
|
2,576
|
|
|
March 31, 2014
|
|
December 31, 2013
|
||||
Loans acquired during the period
|
$
|
—
|
|
|
$
|
1,324
|
|
Loans at the end of the period
|
$
|
428
|
|
|
$
|
1,324
|
|
|
|
Commercial
|
|
Real Estate
|
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||
Allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance, January 1, 2014
|
|
$
|
2,444
|
|
|
$
|
5,174
|
|
|
$
|
1,168
|
|
|
$
|
422
|
|
|
$
|
9,208
|
|
Provision charged to operations
|
|
449
|
|
|
(510
|
)
|
|
237
|
|
|
(176
|
)
|
|
—
|
|
|||||
Losses charged to allowance
|
|
(929
|
)
|
|
—
|
|
|
(85
|
)
|
|
—
|
|
|
(1,014
|
)
|
|||||
Recoveries
|
|
48
|
|
|
8
|
|
|
71
|
|
|
—
|
|
|
127
|
|
|||||
Ending balance, March 31, 2014
|
|
$
|
2,012
|
|
|
$
|
4,672
|
|
|
$
|
1,391
|
|
|
$
|
246
|
|
|
$
|
8,321
|
|
Allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance, January 1, 2013
|
|
$
|
2,676
|
|
|
$
|
5,877
|
|
|
$
|
1,541
|
|
|
$
|
39
|
|
|
$
|
10,133
|
|
Provision charged to operations
|
|
241
|
|
|
(341
|
)
|
|
(238
|
)
|
|
338
|
|
|
—
|
|
|||||
Losses charged to allowance
|
|
(698
|
)
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
(715
|
)
|
|||||
Recoveries
|
|
42
|
|
|
—
|
|
|
29
|
|
|
—
|
|
|
71
|
|
|||||
Ending balance, March 31, 2013
|
|
$
|
2,261
|
|
|
$
|
5,536
|
|
|
$
|
1,315
|
|
|
$
|
377
|
|
|
$
|
9,489
|
|
|
|
|
Commercial
|
|
Real Estate
|
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||
Allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Ending balance, March 31, 2014
|
|
$
|
2,012
|
|
|
$
|
4,672
|
|
|
1,391
|
|
|
$
|
246
|
|
|
$
|
8,321
|
|
|
Ending balance: individually evaluated for impairment
|
|
$
|
—
|
|
|
$
|
308
|
|
|
30
|
|
|
$
|
—
|
|
|
$
|
338
|
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
2,012
|
|
|
$
|
4,364
|
|
|
1,361
|
|
|
$
|
246
|
|
|
$
|
7,983
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending balance, December 31, 2013
|
|
$
|
2,444
|
|
|
$
|
5,174
|
|
|
$
|
1,168
|
|
|
$
|
422
|
|
|
$
|
9,208
|
|
Ending balance: individually evaluated for impairment
|
|
$
|
469
|
|
|
$
|
465
|
|
|
$
|
73
|
|
|
$
|
—
|
|
|
$
|
1,007
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
1,975
|
|
|
$
|
4,709
|
|
|
$
|
1,095
|
|
|
$
|
422
|
|
|
$
|
8,201
|
|
|
|
Commercial
|
|
Real Estate
|
|
Consumer
|
|
Total
|
||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Ending balance, March 31, 2014
|
|
$
|
112,322
|
|
|
$
|
343,845
|
|
|
$
|
58,370
|
|
|
$
|
514,537
|
|
Ending balance: individually evaluated for impairment
|
|
$
|
290
|
|
|
$
|
8,314
|
|
|
$
|
1,954
|
|
|
$
|
10,558
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
112,032
|
|
|
$
|
335,531
|
|
|
$
|
56,416
|
|
|
$
|
503,979
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Ending balance, December 31, 2013
|
|
$
|
118,731
|
|
|
$
|
333,939
|
|
|
$
|
59,846
|
|
|
$
|
512,516
|
|
Ending balance: individually evaluated for impairment
|
|
$
|
1,527
|
|
|
$
|
9,540
|
|
|
$
|
2,290
|
|
|
$
|
13,357
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
117,204
|
|
|
$
|
324,399
|
|
|
$
|
57,556
|
|
|
$
|
499,159
|
|
|
|
Pass
|
|
Special Mention
|
|
Sub-Standard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
$
|
80,920
|
|
|
$
|
3,177
|
|
|
$
|
3,256
|
|
|
$
|
—
|
|
|
$
|
87,353
|
|
Agricultural land and production
|
|
24,969
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24,969
|
|
|||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Owner occupied
|
|
146,483
|
|
|
5,151
|
|
|
7,709
|
|
|
—
|
|
|
159,343
|
|
|||||
Real estate construction and other land loans
|
|
27,796
|
|
|
2,090
|
|
|
7,195
|
|
|
—
|
|
|
37,081
|
|
|||||
Commercial real estate
|
|
79,350
|
|
|
3,910
|
|
|
7,534
|
|
|
—
|
|
|
90,794
|
|
|||||
Agricultural real estate
|
|
50,126
|
|
|
1,981
|
|
|
—
|
|
|
—
|
|
|
52,107
|
|
|||||
Other real estate
|
|
4,520
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,520
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity loans and lines of credit
|
|
40,458
|
|
|
2,081
|
|
|
4,671
|
|
|
—
|
|
|
47,210
|
|
|||||
Consumer and installment
|
|
10,868
|
|
|
39
|
|
|
253
|
|
|
—
|
|
|
11,160
|
|
|||||
Total
|
|
$
|
465,490
|
|
|
$
|
18,429
|
|
|
$
|
30,618
|
|
|
$
|
—
|
|
|
$
|
514,537
|
|
|
|
Pass
|
|
Special Mention
|
|
Sub-Standard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
$
|
81,732
|
|
|
$
|
2,244
|
|
|
$
|
3,106
|
|
|
$
|
—
|
|
|
$
|
87,082
|
|
Agricultural land and production
|
|
31,649
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31,649
|
|
|||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Owner occupied
|
|
144,082
|
|
|
5,229
|
|
|
7,470
|
|
|
—
|
|
|
156,781
|
|
|||||
Real estate construction and other land loans
|
|
31,776
|
|
|
3,959
|
|
|
6,594
|
|
|
—
|
|
|
42,329
|
|
|||||
Commercial real estate
|
|
77,589
|
|
|
3,718
|
|
|
4,810
|
|
|
—
|
|
|
86,117
|
|
|||||
Agricultural real estate
|
|
42,151
|
|
|
2,013
|
|
|
—
|
|
|
—
|
|
|
44,164
|
|
|||||
Other real estate
|
|
4,548
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,548
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity loans and lines of credit
|
|
41,999
|
|
|
2,400
|
|
|
4,195
|
|
|
—
|
|
|
48,594
|
|
|||||
Consumer and installment
|
|
10,946
|
|
|
46
|
|
|
260
|
|
|
—
|
|
|
11,252
|
|
|||||
Total
|
|
$
|
466,472
|
|
|
$
|
19,609
|
|
|
$
|
26,435
|
|
|
$
|
—
|
|
|
$
|
512,516
|
|
|
|
30-59 Days
Past Due
|
|
60-89
Days Past
Due
|
|
Greater
Than
90 Days
Past Due
|
|
Total Past
Due
|
|
Current
|
|
Total
Loans
|
|
Recorded
Investment
> 90 Days
Accruing
|
|
Non-accrual
|
||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
|
$
|
8
|
|
|
$
|
200
|
|
|
$
|
—
|
|
|
$
|
208
|
|
|
$
|
87,145
|
|
|
$
|
87,353
|
|
|
$
|
—
|
|
|
$
|
291
|
|
Agricultural land and production
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24,969
|
|
|
24,969
|
|
|
—
|
|
|
—
|
|
||||||||
Real estate:
|
|
—
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|||||||||
Owner occupied
|
|
379
|
|
|
482
|
|
|
—
|
|
|
861
|
|
|
158,482
|
|
|
159,343
|
|
|
—
|
|
|
1,191
|
|
||||||||
Real estate construction and other land loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37,081
|
|
|
37,081
|
|
|
—
|
|
|
1,401
|
|
||||||||
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
90,794
|
|
|
90,794
|
|
|
—
|
|
|
149
|
|
||||||||
Agricultural real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52,107
|
|
|
52,107
|
|
|
—
|
|
|
—
|
|
||||||||
Other real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,520
|
|
|
4,520
|
|
|
—
|
|
|
—
|
|
||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|||||||||
Equity loans and lines of credit
|
|
377
|
|
|
10
|
|
|
—
|
|
|
387
|
|
|
46,823
|
|
|
47,210
|
|
|
—
|
|
|
1,950
|
|
||||||||
Consumer and installment
|
|
72
|
|
|
5
|
|
|
—
|
|
|
77
|
|
|
11,083
|
|
|
11,160
|
|
|
—
|
|
|
—
|
|
||||||||
Total
|
|
$
|
836
|
|
|
$
|
697
|
|
|
$
|
—
|
|
|
$
|
1,533
|
|
|
$
|
513,004
|
|
|
$
|
514,537
|
|
|
$
|
—
|
|
|
$
|
4,982
|
|
|
|
30-59 Days
Past Due
|
|
60-89
Days Past
Due
|
|
Greater
Than
90 Days
Past Due
|
|
Total Past
Due
|
|
Current
|
|
Total
Loans
|
|
Recorded
Investment
> 90 Days
Accruing
|
|
Non-
accrual
|
||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
|
$
|
274
|
|
|
$
|
236
|
|
|
$
|
—
|
|
|
$
|
510
|
|
|
$
|
86,572
|
|
|
$
|
87,082
|
|
|
$
|
—
|
|
|
$
|
1,527
|
|
Agricultural land and production
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31,649
|
|
|
31,649
|
|
|
—
|
|
|
—
|
|
||||||||
Real estate:
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Owner occupied
|
|
1,272
|
|
|
134
|
|
|
418
|
|
|
1,824
|
|
|
154,957
|
|
|
156,781
|
|
|
—
|
|
|
2,161
|
|
||||||||
Real estate construction and other land loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42,329
|
|
|
42,329
|
|
|
—
|
|
|
1,450
|
|
||||||||
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
86,117
|
|
|
86,117
|
|
|
—
|
|
|
158
|
|
||||||||
Agricultural real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44,164
|
|
|
44,164
|
|
|
—
|
|
|
—
|
|
||||||||
Other real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,548
|
|
|
4,548
|
|
|
—
|
|
|
—
|
|
||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Equity loans and lines of credit
|
|
10
|
|
|
147
|
|
|
252
|
|
|
409
|
|
|
48,185
|
|
|
48,594
|
|
|
—
|
|
|
2,286
|
|
||||||||
Consumer and installment
|
|
86
|
|
|
—
|
|
|
—
|
|
|
86
|
|
|
11,166
|
|
|
11,252
|
|
|
—
|
|
|
4
|
|
||||||||
Total
|
|
$
|
1,642
|
|
|
$
|
517
|
|
|
$
|
670
|
|
|
$
|
2,829
|
|
|
$
|
509,687
|
|
|
$
|
512,516
|
|
|
$
|
—
|
|
|
$
|
7,586
|
|
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and industrial
|
|
$
|
290
|
|
|
$
|
1,332
|
|
|
$
|
—
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|||
Owner occupied
|
|
2,561
|
|
|
3,054
|
|
|
—
|
|
|||
Real estate construction and other land loans
|
|
1,401
|
|
|
2,128
|
|
|
—
|
|
|||
Commercial real estate
|
|
491
|
|
|
890
|
|
|
—
|
|
|||
Total real estate
|
|
4,453
|
|
|
6,072
|
|
|
—
|
|
|||
Consumer:
|
|
|
|
|
|
|
|
|
|
|||
Equity loans and lines of credit
|
|
1,774
|
|
|
2,417
|
|
|
—
|
|
|||
Consumer and installment
|
|
4
|
|
|
5
|
|
|
—
|
|
|||
Total consumer
|
|
1,778
|
|
|
2,422
|
|
|
—
|
|
|||
Total with no related allowance recorded
|
|
6,521
|
|
|
9,826
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Real estate:
|
|
|
|
|
|
|
|
|
|
|||
Real estate construction and other land loans
|
|
3,861
|
|
|
3,861
|
|
|
308
|
|
|||
Consumer:
|
|
|
|
|
|
|
|
|
|
|||
Equity loans and lines of credit
|
|
176
|
|
|
180
|
|
|
30
|
|
|||
Total with an allowance recorded
|
|
4,037
|
|
|
4,041
|
|
|
338
|
|
|||
Total
|
|
$
|
10,558
|
|
|
$
|
13,867
|
|
|
$
|
338
|
|
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and industrial
|
|
$
|
350
|
|
|
$
|
385
|
|
|
$
|
—
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|||
Owner occupied
|
|
3,160
|
|
|
4,159
|
|
|
—
|
|
|||
Real estate construction and other land loans
|
|
1,449
|
|
|
2,136
|
|
|
—
|
|
|||
Commercial real estate
|
|
502
|
|
|
891
|
|
|
—
|
|
|||
Total real estate
|
|
5,111
|
|
|
7,186
|
|
|
—
|
|
|||
Consumer:
|
|
|
|
|
|
|
|
|
|
|||
Equity loans and lines of credit
|
|
2,029
|
|
|
2,826
|
|
|
—
|
|
|||
Consumer and installment
|
|
4
|
|
|
5
|
|
|
—
|
|
|||
Total consumer
|
|
2,033
|
|
|
2,831
|
|
|
—
|
|
|||
Total with no related allowance recorded
|
|
7,494
|
|
|
10,402
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and industrial
|
|
1,177
|
|
|
1,222
|
|
|
469
|
|
|||
Real estate:
|
|
|
|
|
|
|
|
|
|
|||
Owner occupied
|
|
385
|
|
|
425
|
|
|
3
|
|
|||
Real estate construction and other land loans
|
|
4,044
|
|
|
4,044
|
|
|
462
|
|
|||
Total real estate
|
|
4,429
|
|
|
4,469
|
|
|
465
|
|
|||
Consumer:
|
|
|
|
|
|
|
|
|
|
|||
Equity loans and lines of credit
|
|
257
|
|
|
264
|
|
|
73
|
|
|||
Total with an allowance recorded
|
|
5,863
|
|
|
5,955
|
|
|
1,007
|
|
|||
Total
|
|
$
|
13,357
|
|
|
$
|
16,357
|
|
|
$
|
1,007
|
|
|
|
Three Months Ended March 31, 2014
|
|
Three Months Ended March 31, 2013
|
||||||||||||
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial and industrial
|
|
$
|
329
|
|
|
$
|
—
|
|
|
$
|
558
|
|
|
$
|
—
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Owner occupied
|
|
3,195
|
|
|
20
|
|
|
835
|
|
|
—
|
|
||||
Real estate construction and other land loans
|
|
1,427
|
|
|
—
|
|
|
5,007
|
|
|
—
|
|
||||
Commercial real estate
|
|
496
|
|
|
—
|
|
|
26
|
|
|
—
|
|
||||
Total real estate
|
|
5,118
|
|
|
20
|
|
|
5,868
|
|
|
—
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity loans and lines of credit
|
|
1,943
|
|
|
—
|
|
|
1,691
|
|
|
—
|
|
||||
Consumer and installment
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total consumer
|
|
1,947
|
|
|
—
|
|
|
1,691
|
|
|
—
|
|
||||
Total with no related allowance recorded
|
|
7,394
|
|
|
20
|
|
|
8,117
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial and industrial
|
|
872
|
|
|
—
|
|
|
1,821
|
|
|
33
|
|
||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Owner occupied
|
|
96
|
|
|
—
|
|
|
747
|
|
|
—
|
|
||||
Real estate construction and other land loans
|
|
3,988
|
|
|
70
|
|
|
6,480
|
|
|
86
|
|
||||
Total real estate
|
|
4,084
|
|
|
70
|
|
|
7,227
|
|
|
86
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity loans and lines of credit
|
|
236
|
|
|
—
|
|
|
223
|
|
|
—
|
|
||||
Total with an allowance recorded
|
|
5,192
|
|
|
70
|
|
|
9,288
|
|
|
119
|
|
||||
Total
|
|
$
|
12,586
|
|
|
$
|
90
|
|
|
$
|
17,405
|
|
|
$
|
119
|
|
Basic Earnings Per Share
|
|
For the Quarter
Ended March 31, |
||||||
(In thousands, except share and per share amounts)
|
|
2014
|
|
2013
|
||||
Net Income
|
|
$
|
2,616
|
|
|
$
|
1,783
|
|
Less: Preferred stock dividends and accretion
|
|
—
|
|
|
(87
|
)
|
||
Income available to common shareholders
|
|
$
|
2,616
|
|
|
$
|
1,696
|
|
Weighted average shares outstanding
|
|
10,915,945
|
|
|
9,558,985
|
|
||
Basic earnings per share
|
|
$
|
0.24
|
|
|
$
|
0.18
|
|
Diluted Earnings Per Share
|
|
For the Quarter
Ended March 31, |
||||||
(In thousands, except share and per share amounts)
|
|
2014
|
|
2013
|
||||
Net Income
|
|
$
|
2,616
|
|
|
$
|
1,783
|
|
Less: Preferred stock dividends and accretion
|
|
—
|
|
|
(87
|
)
|
||
Income available to common shareholders
|
|
$
|
2,616
|
|
|
$
|
1,696
|
|
Weighted average shares outstanding
|
|
10,915,945
|
|
|
9,558,985
|
|
||
Effect of dilutive stock options
|
|
82,685
|
|
|
45,856
|
|
||
Weighted average shares of common stock and common stock equivalents
|
|
10,998,630
|
|
|
9,604,841
|
|
||
Diluted earnings per share
|
|
$
|
0.24
|
|
|
$
|
0.18
|
|
|
|
Shares
|
|
Weighted
Average
Exercise Price
|
|
Weighted
Average
Remaining
Contractual
Term (Years)
|
|
Aggregate
Intrinsic Value (In thousands)
|
|||||
Options outstanding at January 1, 2014
|
|
380,430
|
|
|
$
|
8.83
|
|
|
|
|
|
|
|
Options exercised
|
|
(1,500
|
)
|
|
$
|
6.52
|
|
|
|
|
|
|
|
Options forfeited
|
|
(620
|
)
|
|
$
|
7.80
|
|
|
|
|
|
|
|
Options outstanding at March 31, 2014
|
|
378,310
|
|
|
$
|
8.84
|
|
|
4.46
|
|
$
|
1,236
|
|
Options vested or expected to vest at March 31, 2014
|
|
372,998
|
|
|
$
|
8.86
|
|
|
4.41
|
|
$
|
1,214
|
|
Options exercisable at March 31, 2014
|
|
279,490
|
|
|
$
|
9.37
|
|
|
3.24
|
|
$
|
825
|
|
|
|
For the Quarter
Ended March 31, |
||||||
|
|
2014
|
|
2013
|
||||
Intrinsic value of options exercised
|
|
$
|
7
|
|
|
$
|
2
|
|
Cash received from options exercised
|
|
$
|
10
|
|
|
$
|
4
|
|
|
|
Shares
|
|
Weighted
Average
Grant Date Fair Value
|
|||
Nonvested outstanding shares at January 1, 2014
|
|
—
|
|
|
$
|
—
|
|
Granted
|
|
8,905
|
|
|
$
|
11.23
|
|
Vested
|
|
—
|
|
|
$
|
—
|
|
Forfeited
|
|
—
|
|
|
$
|
—
|
|
Nonvested outstanding shares at March 31, 2014
|
|
8,905
|
|
|
$
|
11.23
|
|
|
|
For the Three Months Ended March 31, 2014
|
|
For the Three Months Ended March 31, 2013
|
||||||||||||||||||
(Dollars in thousands)
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Average
Interest
Rate
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Average
Interest
Rate
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest-earning deposits in other banks
|
|
$
|
68,761
|
|
|
$
|
53
|
|
|
0.31
|
%
|
|
$
|
31,249
|
|
|
$
|
30
|
|
|
0.39
|
%
|
Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Taxable securities
|
|
289,845
|
|
|
1,347
|
|
|
1.86
|
%
|
|
220,593
|
|
|
402
|
|
|
0.73
|
%
|
||||
Non-taxable securities (1)
|
|
156,026
|
|
|
2,124
|
|
|
5.45
|
%
|
|
148,847
|
|
|
2,027
|
|
|
5.45
|
%
|
||||
Total investment securities
|
|
445,871
|
|
|
3,471
|
|
|
3.11
|
%
|
|
369,440
|
|
|
2,429
|
|
|
2.63
|
%
|
||||
Federal funds sold
|
|
239
|
|
|
—
|
|
|
0.25
|
%
|
|
327
|
|
|
—
|
|
|
0.30
|
%
|
||||
Total securities and interest-earning deposits
|
|
514,871
|
|
|
3,524
|
|
|
2.74
|
%
|
|
401,016
|
|
|
2,459
|
|
|
2.45
|
%
|
||||
Loans (2) (3)
|
|
507,736
|
|
|
7,618
|
|
|
6.08
|
%
|
|
380,075
|
|
|
5,411
|
|
|
5.77
|
%
|
||||
Federal Home Loan Bank stock
|
|
4,499
|
|
|
76
|
|
|
6.76
|
%
|
|
3,850
|
|
|
22
|
|
|
2.29
|
%
|
||||
Total interest-earning assets
|
|
1,027,106
|
|
|
$
|
11,218
|
|
|
4.37
|
%
|
|
784,941
|
|
|
$
|
7,892
|
|
|
4.02
|
%
|
||
Allowance for credit losses
|
|
(9,234
|
)
|
|
|
|
|
|
|
|
(10,006
|
)
|
|
|
|
|
|
|
||||
Nonaccrual loans
|
|
6,643
|
|
|
|
|
|
|
|
|
10,598
|
|
|
|
|
|
|
|
||||
Other real estate owned
|
|
32
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
||||
Cash and due from banks
|
|
24,449
|
|
|
|
|
|
|
|
|
19,150
|
|
|
|
|
|
|
|
||||
Bank premises and equipment
|
|
10,533
|
|
|
|
|
|
|
|
|
6,237
|
|
|
|
|
|
|
|
||||
Other non-earning assets
|
|
69,099
|
|
|
|
|
|
|
|
|
59,498
|
|
|
|
|
|
|
|
||||
Total average assets
|
|
$
|
1,128,628
|
|
|
|
|
|
|
|
|
$
|
870,418
|
|
|
|
|
|
|
|
||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Savings and NOW accounts
|
|
$
|
253,136
|
|
|
$
|
70
|
|
|
0.11
|
%
|
|
$
|
201,973
|
|
|
$
|
72
|
|
|
0.14
|
%
|
Money market accounts
|
|
216,338
|
|
|
53
|
|
|
0.10
|
%
|
|
169,302
|
|
|
57
|
|
|
0.14
|
%
|
||||
Time certificates of deposit, under $100,000
|
|
53,246
|
|
|
53
|
|
|
0.40
|
%
|
|
54,460
|
|
|
55
|
|
|
0.41
|
%
|
||||
Time certificates of deposit, $100,000 and over
|
|
113,777
|
|
|
121
|
|
|
0.43
|
%
|
|
84,179
|
|
|
109
|
|
|
0.53
|
%
|
||||
Total interest-bearing deposits
|
|
636,497
|
|
|
297
|
|
|
0.19
|
%
|
|
509,914
|
|
|
293
|
|
|
0.23
|
%
|
||||
Other borrowed funds
|
|
5,155
|
|
|
24
|
|
|
1.89
|
%
|
|
7,071
|
|
|
42
|
|
|
2.41
|
%
|
||||
Total interest-bearing liabilities
|
|
641,652
|
|
|
$
|
321
|
|
|
0.20
|
%
|
|
516,985
|
|
|
$
|
335
|
|
|
0.26
|
%
|
||
Non-interest bearing demand deposits
|
|
348,552
|
|
|
|
|
|
|
|
|
225,814
|
|
|
|
|
|
|
|
||||
Other liabilities
|
|
13,460
|
|
|
|
|
|
|
|
|
10,162
|
|
|
|
|
|
|
|
||||
Shareholders’ equity
|
|
124,964
|
|
|
|
|
|
|
|
|
117,457
|
|
|
|
|
|
|
|
||||
Total average liabilities and shareholders’ equity
|
|
$
|
1,128,628
|
|
|
|
|
|
|
|
|
$
|
870,418
|
|
|
|
|
|
|
|
||
Interest income and rate earned on average earning assets
|
|
|
|
|
$
|
11,218
|
|
|
4.37
|
%
|
|
|
|
|
$
|
7,892
|
|
|
4.02
|
%
|
||
Interest expense and interest cost related to average interest-bearing liabilities
|
|
|
|
|
321
|
|
|
0.20
|
%
|
|
|
|
|
335
|
|
|
0.26
|
%
|
||||
Net interest income and net interest margin (4)
|
|
|
|
|
$
|
10,897
|
|
|
4.24
|
%
|
|
|
|
|
$
|
7,557
|
|
|
3.85
|
%
|
(1)
|
Calculated on a fully tax equivalent basis, which includes Federal tax benefits relating to income earned on municipal bonds totaling
$722
and
$689
in
2014
and
2013
, respectively.
|
(2)
|
Loan interest income includes loan fees of $
42
in
2014
and $
30
in
2013
|
(3)
|
Average loans do not include nonaccrual loans.
|
(4)
|
Net interest margin is computed by dividing net interest income by total average interest-earning assets.
|
Loan Type (dollars in thousands)
|
|
March 31, 2014
|
|
% of
Total
Loans
|
|
December 31, 2013
|
|
% of
Total
Loans
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
||||||
Commercial and industrial
|
|
$
|
1,711
|
|
|
17.0
|
%
|
|
$
|
1,928
|
|
|
17.0
|
%
|
Agricultural land and production
|
|
301
|
|
|
6.1
|
%
|
|
516
|
|
|
6.1
|
%
|
||
Total commercial
|
|
2,012
|
|
|
|
|
2,444
|
|
|
|
||||
Real estate:
|
|
|
|
|
|
|
|
|
||||||
Owner occupied
|
|
1,635
|
|
|
30.6
|
%
|
|
1,697
|
|
|
30.6
|
%
|
||
Real estate construction and other land loans
|
|
1,114
|
|
|
8.3
|
%
|
|
1,289
|
|
|
8.3
|
%
|
||
Commercial real estate
|
|
1,245
|
|
|
16.8
|
%
|
|
1,406
|
|
|
16.8
|
%
|
||
Agricultural real estate
|
|
621
|
|
|
8.6
|
%
|
|
672
|
|
|
8.6
|
%
|
||
Other real estate
|
|
57
|
|
|
0.9
|
%
|
|
110
|
|
|
0.9
|
%
|
||
Total real estate
|
|
4,672
|
|
|
65.2
|
%
|
|
5,174
|
|
|
65.2
|
%
|
||
Consumer:
|
|
|
|
|
|
|
|
|
||||||
Equity loans and lines of credit
|
|
1,116
|
|
|
9.5
|
%
|
|
874
|
|
|
9.5
|
%
|
||
Consumer and installment
|
|
275
|
|
|
2.2
|
%
|
|
294
|
|
|
2.2
|
%
|
||
Total consumer
|
|
1,391
|
|
|
|
|
1,168
|
|
|
|
||||
Unallocated reserves
|
|
246
|
|
|
|
|
|
422
|
|
|
|
|
||
Total allowance for credit losses
|
|
$
|
8,321
|
|
|
|
|
|
$
|
9,208
|
|
|
|
|
|
|
For the Quarter Ended March 31,
|
||||||||||||
|
|
2014
|
|
2013
|
||||||||||
(Dollars in thousands)
|
|
Other Expense
|
|
% Average
Assets
|
|
Other Expense
|
|
% Average
Assets
|
||||||
Stationery/supplies
|
|
$
|
69
|
|
|
0.02
|
%
|
|
$
|
55
|
|
|
0.03
|
%
|
Director fees and related expenses
|
|
66
|
|
|
0.02
|
%
|
|
55
|
|
|
0.03
|
%
|
||
Amortization of software
|
|
61
|
|
|
0.02
|
%
|
|
58
|
|
|
0.03
|
%
|
||
Loss on sale or write-down of assets
|
|
66
|
|
|
0.02
|
%
|
|
102
|
|
|
0.05
|
%
|
||
Postage
|
|
60
|
|
|
0.02
|
%
|
|
43
|
|
|
0.02
|
%
|
||
Legal
|
|
60
|
|
|
0.02
|
%
|
|
31
|
|
|
0.01
|
%
|
||
Donations
|
|
56
|
|
|
0.02
|
%
|
|
42
|
|
|
0.02
|
%
|
||
Personnel other
|
|
53
|
|
|
0.02
|
%
|
|
38
|
|
|
0.02
|
%
|
||
Armored courier fees
|
|
52
|
|
|
0.02
|
%
|
|
28
|
|
|
0.01
|
%
|
||
Consulting
|
|
50
|
|
|
0.02
|
%
|
|
38
|
|
|
0.02
|
%
|
||
Telephone
|
|
42
|
|
|
0.01
|
%
|
|
45
|
|
|
0.02
|
%
|
||
Appraisal fees
|
|
37
|
|
|
0.01
|
%
|
|
18
|
|
|
0.01
|
%
|
||
Education/training
|
|
35
|
|
|
0.01
|
%
|
|
26
|
|
|
0.01
|
%
|
||
General insurance
|
|
34
|
|
|
0.01
|
%
|
|
30
|
|
|
0.01
|
%
|
||
Operating losses
|
|
2
|
|
|
—
|
%
|
|
5
|
|
|
—
|
%
|
||
Acquisition and integration
|
|
—
|
|
|
—
|
%
|
|
8
|
|
|
—
|
%
|
||
Other
|
|
524
|
|
|
0.19
|
%
|
|
338
|
|
|
0.16
|
%
|
||
Total other non-interest expense
|
|
$
|
1,267
|
|
|
0.45
|
%
|
|
$
|
960
|
|
|
0.44
|
%
|
Loan Type (dollars in thousands)
|
|
March 31, 2014
|
|
% of Total
Loans
|
|
December 31, 2013
|
|
% of Total
Loans
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Commercial and industrial
|
|
$
|
87,353
|
|
|
17.0
|
%
|
|
$
|
87,082
|
|
|
17.0
|
%
|
Agricultural land and production
|
|
24,969
|
|
|
4.8
|
%
|
|
31,649
|
|
|
6.1
|
%
|
||
Total commercial
|
|
112,322
|
|
|
21.8
|
%
|
|
118,731
|
|
|
23.1
|
%
|
||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Owner occupied
|
|
159,343
|
|
|
31.0
|
%
|
|
156,781
|
|
|
30.6
|
%
|
||
Real estate construction and other land loans
|
|
37,081
|
|
|
7.2
|
%
|
|
42,329
|
|
|
8.3
|
%
|
||
Commercial real estate
|
|
90,794
|
|
|
17.6
|
%
|
|
86,117
|
|
|
16.8
|
%
|
||
Agricultural real estate
|
|
52,107
|
|
|
10.1
|
%
|
|
44,164
|
|
|
8.6
|
%
|
||
Other real estate
|
|
4,520
|
|
|
0.9
|
%
|
|
4,548
|
|
|
0.9
|
%
|
||
Total real estate
|
|
343,845
|
|
|
66.8
|
%
|
|
333,939
|
|
|
65.2
|
%
|
||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Equity loans and lines of credit
|
|
47,210
|
|
|
9.2
|
%
|
|
48,594
|
|
|
9.5
|
%
|
||
Consumer and installment
|
|
11,160
|
|
|
2.2
|
%
|
|
11,252
|
|
|
2.2
|
%
|
||
Total consumer
|
|
58,370
|
|
|
11.4
|
%
|
|
59,846
|
|
|
11.7
|
%
|
||
Deferred loan fees, net
|
|
(116
|
)
|
|
|
|
|
(159
|
)
|
|
|
|
||
Total gross loans
|
|
514,421
|
|
|
100.0
|
%
|
|
512,357
|
|
|
100.0
|
%
|
||
Allowance for credit losses
|
|
(8,321
|
)
|
|
|
|
|
(9,208
|
)
|
|
|
|
||
Total loans
|
|
$
|
506,100
|
|
|
|
|
|
$
|
503,149
|
|
|
|
|
(In thousands)
|
|
March 31, 2014
|
|
December 31, 2013
|
||||
Nonaccrual loans
|
|
|
|
|
|
|
||
Commercial and industrial
|
|
$
|
76
|
|
|
$
|
335
|
|
Owner occupied
|
|
816
|
|
|
1,777
|
|
||
Commercial real estate
|
|
149
|
|
|
158
|
|
||
Equity loans and lines of credit
|
|
422
|
|
|
721
|
|
||
Troubled debt restructured loans (non-accruing)
|
|
|
|
|
|
|
||
Commercial and industrial
|
|
215
|
|
|
1,192
|
|
||
Owner occupied
|
|
375
|
|
|
384
|
|
||
Real estate construction and other land loans
|
|
1,401
|
|
|
1,450
|
|
||
Equity loans and lines of credit
|
|
1,528
|
|
|
1,565
|
|
||
Consumer and installment
|
|
—
|
|
|
4
|
|
||
Total nonaccrual
|
|
4,982
|
|
|
7,586
|
|
||
Accruing loans past due 90 days or more
|
|
—
|
|
|
—
|
|
||
Total nonperforming loans
|
|
$
|
4,982
|
|
|
$
|
7,586
|
|
Nonperforming loans to total loans
|
|
0.97
|
%
|
|
1.48
|
%
|
||
Ratio of nonperforming loans to allowance for credit losses
|
|
59.87
|
%
|
|
82.38
|
%
|
||
Loans considered to be impaired
|
|
$
|
10,558
|
|
|
$
|
13,357
|
|
Related allowance for credit losses on impaired loans
|
|
$
|
338
|
|
|
$
|
1,007
|
|
(In thousands)
|
|
Balance, December 31, 2013
|
|
Additions
to
Nonaccrual
Loans
|
|
Net Pay
Downs
|
|
Transfers
to
Foreclosed
Collateral
- OREO
|
|
Returns to
Accrual
Status
|
|
Charge
Offs
|
|
Balance, March 31, 2014
|
||||||||||||||
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial and industrial
|
|
$
|
335
|
|
|
$
|
—
|
|
|
$
|
(259
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
76
|
|
Real estate
|
|
1,935
|
|
|
—
|
|
|
(970
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
965
|
|
|||||||
Equity loans and lines of credit
|
|
721
|
|
|
—
|
|
|
(240
|
)
|
|
—
|
|
|
—
|
|
|
(59
|
)
|
|
422
|
|
|||||||
Restructured loans (non-accruing):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial and industrial
|
|
1,192
|
|
|
—
|
|
|
(54
|
)
|
|
—
|
|
|
—
|
|
|
(923
|
)
|
|
215
|
|
|||||||
Real estate
|
|
384
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
375
|
|
|||||||
Real estate construction and other land loans
|
|
1,450
|
|
|
—
|
|
|
(49
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,401
|
|
|||||||
Equity loans and lines of credit
|
|
1,565
|
|
|
—
|
|
|
(37
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,528
|
|
|||||||
Consumer
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|||||||
Total nonaccrual
|
|
$
|
7,586
|
|
|
$
|
—
|
|
|
$
|
(1,618
|
)
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
(982
|
)
|
|
$
|
4,982
|
|
|
|
Balance
|
||
(In thousands)
|
|
March 31, 2014
|
||
Balance, December 31, 2013
|
|
$
|
190
|
|
Additions
|
|
—
|
|
|
Dispositions
|
|
(254
|
)
|
|
Write-downs
|
|
—
|
|
|
Net gain on disposition
|
|
64
|
|
|
Balance, March 31, 2014
|
|
—
|
|
|
|
For the Three Months Ended March 31,
|
|
For the Year Ended
December 31,
|
|
For the Three Months Ended March 31,
|
||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2013
|
||||||
Balance, beginning of period
|
|
$
|
9,208
|
|
|
$
|
10,133
|
|
|
$
|
10,133
|
|
Provision charged to operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Losses charged to allowance
|
|
(1,014
|
)
|
|
(1,446
|
)
|
|
(715
|
)
|
|||
Recoveries
|
|
127
|
|
|
521
|
|
|
71
|
|
|||
Balance, end of period
|
|
$
|
8,321
|
|
|
$
|
9,208
|
|
|
$
|
9,489
|
|
Allowance for credit losses to total loans at end of period
|
|
1.62
|
%
|
|
1.80
|
%
|
|
2.43
|
%
|
(Dollars in thousands)
|
|
March 31, 2014
|
|
% of
Total
Deposits
|
|
Effective
Rate
|
|
December 31, 2013
|
|
% of
Total
Deposits
|
|
Effective
Rate
|
||||||||
NOW accounts
|
|
$
|
194,877
|
|
|
19.7
|
%
|
|
0.13
|
%
|
|
$
|
182,364
|
|
|
18.2
|
%
|
|
0.15
|
%
|
MMA accounts
|
|
208,921
|
|
|
21.0
|
%
|
|
0.10
|
%
|
|
234,515
|
|
|
23.3
|
%
|
|
0.12
|
%
|
||
Time deposits
|
|
165,384
|
|
|
16.7
|
%
|
|
0.42
|
%
|
|
168,954
|
|
|
16.8
|
%
|
|
0.48
|
%
|
||
Savings deposits
|
|
67,437
|
|
|
6.8
|
%
|
|
0.07
|
%
|
|
61,918
|
|
|
6.2
|
%
|
|
0.08
|
%
|
||
Total interest-bearing
|
|
636,619
|
|
|
64.2
|
%
|
|
0.19
|
%
|
|
647,751
|
|
|
64.5
|
%
|
|
0.22
|
%
|
||
Non-interest bearing
|
|
354,377
|
|
|
35.8
|
%
|
|
|
|
356,392
|
|
|
35.5
|
%
|
|
|
||||
Total deposits
|
|
$
|
990,996
|
|
|
100.0
|
%
|
|
|
|
$
|
1,004,143
|
|
|
100.0
|
%
|
|
|
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
||||||
Tier 1 Leverage Ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Central Valley Community Bancorp and Subsidiary
|
|
$
|
94,381
|
|
|
8.63
|
%
|
|
$
|
88,320
|
|
|
8.14
|
%
|
Minimum regulatory requirement
|
|
$
|
43,739
|
|
|
4.00
|
%
|
|
$
|
43,394
|
|
|
4.00
|
%
|
Central Valley Community Bank
|
|
$
|
93,844
|
|
|
8.59
|
%
|
|
$
|
87,674
|
|
|
8.09
|
%
|
Minimum requirement for “Well-Capitalized” institution
|
|
$
|
54,648
|
|
|
5.00
|
%
|
|
$
|
54,218
|
|
|
5.00
|
%
|
Minimum regulatory requirement
|
|
$
|
43,718
|
|
|
4.00
|
%
|
|
$
|
43,375
|
|
|
4.00
|
%
|
Tier 1 Risk-Based Capital Ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Central Valley Community Bancorp and Subsidiary
|
|
$
|
94,381
|
|
|
14.67
|
%
|
|
$
|
88,320
|
|
|
13.88
|
%
|
Minimum regulatory requirement
|
|
$
|
25,734
|
|
|
4.00
|
%
|
|
$
|
25,454
|
|
|
4.00
|
%
|
Central Valley Community Bank
|
|
$
|
93,844
|
|
|
14.60
|
%
|
|
$
|
87,674
|
|
|
13.79
|
%
|
Minimum requirement for “Well-Capitalized” institution
|
|
$
|
38,567
|
|
|
6.00
|
%
|
|
$
|
38,151
|
|
|
6.00
|
%
|
Minimum regulatory requirement
|
|
$
|
25,711
|
|
|
4.00
|
%
|
|
$
|
25,434
|
|
|
4.00
|
%
|
Total Risk-Based Capital Ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Central Valley Community Bancorp and Subsidiary
|
|
$
|
102,428
|
|
|
15.92
|
%
|
|
$
|
96,292
|
|
|
15.13
|
%
|
Minimum regulatory requirement
|
|
$
|
51,468
|
|
|
8.00
|
%
|
|
$
|
50,908
|
|
|
8.00
|
%
|
Central Valley Community Bank
|
|
$
|
101,884
|
|
|
15.85
|
%
|
|
$
|
95,639
|
|
|
15.04
|
%
|
Minimum requirement for “Well-Capitalized” institution
|
|
$
|
64,278
|
|
|
10.00
|
%
|
|
$
|
63,585
|
|
|
10.00
|
%
|
Minimum regulatory requirement
|
|
$
|
51,422
|
|
|
8.00
|
%
|
|
$
|
50,868
|
|
|
8.00
|
%
|
Credit Lines (In thousands)
|
|
March 31, 2014
|
|
December 31, 2013
|
||||
Unsecured Credit Lines
|
|
|
|
|
|
|
||
(interest rate varies with market):
|
|
|
|
|
|
|
||
Credit limit
|
|
$
|
40,000
|
|
|
$
|
40,000
|
|
Balance outstanding
|
|
$
|
—
|
|
|
$
|
—
|
|
Federal Home Loan Bank
|
|
|
|
|
|
|
||
(interest rate at prevailing interest rate):
|
|
|
|
|
|
|
||
Credit limit
|
|
$
|
286,239
|
|
|
$
|
272,797
|
|
Balance outstanding
|
|
$
|
—
|
|
|
$
|
—
|
|
Collateral pledged
|
|
$
|
153,611
|
|
|
$
|
119,539
|
|
Fair value of collateral
|
|
$
|
153,814
|
|
|
$
|
119,902
|
|
Federal Reserve Bank
|
|
|
|
|
|
|
||
(interest rate at prevailing discount interest rate):
|
|
|
|
|
|
|
||
Credit limit
|
|
$
|
19
|
|
|
$
|
51
|
|
Balance outstanding
|
|
$
|
—
|
|
|
$
|
—
|
|
Collateral pledged
|
|
$
|
18
|
|
|
$
|
48
|
|
Fair value of collateral
|
|
$
|
19
|
|
|
$
|
52
|
|
|
10.110
|
|
|
Executive Salary Continuation Agreement by and between Central Valley Community Bank and James M. Ford, dated April 4, 2014
|
|
|
|
|
10.111
|
|
|
Life Insurance Endorsement Method Split Dollar Plan Agreement by and between Central Valley Community Bank and James M. Ford, dated April 4, 2014
|
|
|
|
|
10.112
|
|
|
Restricted Stock Agreement by and between Central Valley Community Bancorp and James M. Ford, dated March 19, 2014
|
|
|
|
|
31.1
|
|
|
Certification of Principal Executive Officer Pursuant to Rule 13a-14(d) / 15d-14(a) of the Securities Exchange Act of 1934.
|
|
|
|
|
31.2
|
|
|
Certification of Principal Financial Officer Pursuant to Rule 13a-14(d) / 15d-14(a) of the Securities Exchange Act of 1934.
|
|
|
|
|
32.1
|
|
|
Certification of Principal Executive Officer Pursuant to Rule 13a-14(b) / 15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350.
|
|
|
|
|
32.2
|
|
|
Certification of Principal Financial Officer Pursuant to Rule 13a-14(b) / 15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350.
|
|
|
|
|
101.INS
|
|
XBRL Instance Document
|
|
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation document
|
|
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase
|
|
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension labels Linkbase Document
|
|
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Link Document
|
Central Valley Community Bancorp
|
|
|
|
Date: May 12, 2014
|
/s/ Daniel J. Doyle
|
|
Daniel J. Doyle
|
|
President and Chief Executive Officer
|
|
|
Date: May 12, 2014
|
/s/ David A. Kinross
|
|
David A. Kinross
|
|
Senior Vice President and Chief Financial Officer
|
A.
|
The Executive is a valued executive of the Bank, and currently serves as the Bank’s President.
|
B.
|
The Bank’s Board of Directors (the “
Board
”) has determined that the Executive’s services to the Bank are valuable. The Bank and the Executive desire to enter into this Agreement under which the Bank has agreed to make certain payments to the Executive at retirement.
|
C.
|
The Parties intend that this Agreement shall constitute an unfunded arrangement maintained primarily to provide supplemental retirement benefits for the Executive under the Employee Retirement Income Security Act of 1974, as amended (“
ERISA
”). The parties further intend that this Agreement shall constitute a nonqualified deferred compensation arrangement under the Internal Revenue Code (“
Code
”). The Executive is fully advised of the Bank’s financial status and has had substantial input in the design of and benefits provided under this Agreement.
|
Retirement Month
|
Ret. Year
|
Annual Amount
|
|
|
Retirement Month
|
Ret. Year
|
Annual Amount
|
|
|
Retirement Month
|
Ret. Year
|
Annual Amount
|
||||||
September
|
2018
|
|
$50,000
|
|
|
|
May
|
2020
|
|
$66,667
|
|
|
|
January
|
2022
|
|
$83,333
|
|
October
|
2018
|
|
$50,833
|
|
|
|
June
|
2020
|
|
$67,500
|
|
|
|
February
|
2022
|
|
$84,167
|
|
November
|
2018
|
|
$51,667
|
|
|
|
July
|
2020
|
|
$68,333
|
|
|
|
March
|
2022
|
|
$85,000
|
|
December
|
2018
|
|
$52,500
|
|
|
|
August
|
2020
|
|
$69,167
|
|
|
|
April
|
2022
|
|
$85,833
|
|
January
|
2019
|
|
$53,333
|
|
|
|
September
|
2020
|
|
$70,000
|
|
|
|
May
|
2022
|
|
$86,667
|
|
February
|
2019
|
|
$54,167
|
|
|
|
October
|
2020
|
|
$70,833
|
|
|
|
June
|
2022
|
|
$87,500
|
|
March
|
2019
|
|
$55,000
|
|
|
|
November
|
2020
|
|
$71,667
|
|
|
|
July
|
2022
|
|
$88,333
|
|
April
|
2019
|
|
$55,833
|
|
|
|
December
|
2020
|
|
$72,500
|
|
|
|
August
|
2022
|
|
$89,167
|
|
May
|
2019
|
|
$56,667
|
|
|
|
January
|
2021
|
|
$73,333
|
|
|
|
September
|
2022
|
|
$90,000
|
|
June
|
2019
|
|
$57,500
|
|
|
|
February
|
2021
|
|
$74,167
|
|
|
|
October
|
2022
|
|
$90,833
|
|
July
|
2019
|
|
$58,333
|
|
|
|
March
|
2021
|
|
$75,000
|
|
|
|
November
|
2022
|
|
$91,667
|
|
August
|
2019
|
|
$59,167
|
|
|
|
April
|
2021
|
|
$75,833
|
|
|
|
December
|
2022
|
|
$92,500
|
|
September
|
2019
|
|
$60,000
|
|
|
|
May
|
2021
|
|
$76,667
|
|
|
|
January
|
2023
|
|
$93,333
|
|
October
|
2019
|
|
$60,833
|
|
|
|
June
|
2021
|
|
$77,500
|
|
|
|
February
|
2023
|
|
$94,166
|
|
November
|
2019
|
|
$61,667
|
|
|
|
July
|
2021
|
|
$78,333
|
|
|
|
March
|
2023
|
|
$95,000
|
|
December
|
2019
|
|
$62,500
|
|
|
|
August
|
2021
|
|
$79,167
|
|
|
|
April
|
2023
|
|
$95,833
|
|
January
|
2020
|
|
$63,333
|
|
|
|
September
|
2021
|
|
$80,000
|
|
|
|
May
|
2023
|
|
$96,666
|
|
February
|
2020
|
|
$64,167
|
|
|
|
October
|
2021
|
|
$80,833
|
|
|
|
June
|
2023
|
|
$97,500
|
|
March
|
2020
|
|
$65,000
|
|
|
|
November
|
2021
|
|
$81,667
|
|
|
|
July
|
2023
|
|
$98,333
|
|
April
|
2020
|
|
$65,833
|
|
|
|
December
|
2021
|
|
$82,500
|
|
|
|
August
|
2023
|
|
$99,166
|
|
|
|
|
|
|
|
|
|
|
|
September
|
2023
|
|
$100,000
|
|
A.
|
Restrictions on Contracts and Payments for Insured Depository Institutions in Troubled Status
.
|
Discount Rate:
|
The discount rate as used in the APB 12 calculations for this Agreement. The initial rate shall be four and 55/100 percent (4.55%).
|
XI.
|
TERMINATION OR MODIFICATION OF AGREEMENT BY REASON OF CHANGES IN THE LAW, RULES OR REGULATIONS
|
XIII.
|
USE OF TRADE SECRETS AND SOLICITATION AFTER TERMINATION OF EMPLOYMENT
|
BANK:
CENTRAL VALLEY COMMUNITY BANK
By:
/s/Daniel J. Doyle
Daniel J. Doyle
Chief Executive Officer
Dated:
April 4, 2014
|
EXECUTIVE:
JAMES FORD
/s/James M. Ford
James M. Ford
Dated:
April 7, 2014
|
NOTE:
|
To name a trust as beneficiary, please provide the name of the trustee and the
exact
date of the trust agreement.
|
I.
|
DEFINITIONS
|
II.
|
POLICY TITLE AND OWNERSHIP
|
III.
|
BENEFICIARY DESIGNATION RIGHTS
|
IV.
|
PREMIUM PAYMENT METHOD
|
V.
|
TAXABLE BENEFIT
|
VI.
|
DIVISION OF DEATH PROCEEDS
|
A.
|
Should the Insured be employed by the Bank at the time of death, the Insured’s beneficiary(ies), designated in accordance with Paragraph III, shall be entitled to a lump sum payment equal to the present value of the Normal Retirement Benefit under that certain Executive Salary Continuation Agreement between the Bank and Insured dated of even date herewith (the "
Salary Continuation Agreement
") assuming that the payments would begin on the date of death and continue for one hundred and twenty months following such Retirement (as those terms are defined in the Salary Continuation Agreement), or one hundred percent (100%) of the total proceeds of the policy, whichever amount is less. Present value calculations shall be made using the assumptions set forth in Section X(K) of the Salary Continuation Agreement.
|
B.
|
Should the Insured be retired from the Bank at the time of death, the Insured’s beneficiary(ies), designated in accordance with Paragraph III, shall be entitled to a lump sum payment equal to the present value of one hundred percent (100%) of the sum of all remaining payments that would have been made under the Salary Continuation Agreement, but for the Insured's death, or one hundred percent (100%) of the total proceeds of the policy, whichever amount is less. Present value calculations shall be made using the assumptions set forth in Section X(K) of the Salary Continuation Agreement.
|
C.
|
The Bank shall be entitled to the remainder of such proceeds.
|
D.
|
The Bank and the Insured (or assignees) shall share in any interest due on the death proceeds on a pro rata basis as the proceeds due each respectively bears to the total proceeds, excluding any such interest.
|
VII.
|
DIVISION OF THE CASH SURRENDER VALUE OF THE POLICY
|
VIII.
|
RIGHTS OF PARTIES WHERE POLICY ENDOWMENT OR ANNUITY ELECTION EXISTS
|
IX.
|
TERMINATION OF AGREEMENT
|
1.
|
The Insured shall be discharged from employment with the Bank for cause. The term for “cause” shall mean any of the following that result in an adverse effect on the Bank: (i) gross negligence or gross neglect; (ii) the commission of a felony or gross misdemeanor involving moral turpitude, fraud, or dishonesty; (iii) the willful violation of any law, rule, or regulation (other than a traffic violation or similar offense); (iv) an intentional failure to perform stated duties; or (v) a breach of fiduciary duty involving personal profit; or
|
2.
|
Surrender, lapse, or other termination of the Policy by the Bank.
|
X.
|
INSURED’S OR ASSIGNEE’S ASSIGNMENT RIGHTS
|
XI.
|
AGREEMENT BINDING UPON THE PARTIES
|
XII.
|
ERISA PROVISIONS
|
A.
|
Named Fiduciary and Plan Administrator
.
|
B.
|
Funding Policy
.
|
C.
|
Basis of Payment of Benefits
.
|
D.
|
Claim Procedures
.
|
XIII.
|
GENDER
|
XIV.
|
INSURANCE COMPANY NOT A PARTY TO THIS AGREEMENT
|
XV.
|
AMENDMENT OR REVOCATION
|
XVI.
|
EFFECTIVE DATE
|
XVII.
|
SEVERABILITY AND INTERPRETATION
|
XVIII.
|
APPLICABLE LAW
|
XIX.
|
USE OF TRADE SECRETS AND SOLICITATION AFTER TERMINATION OF EMPLOYMENT
|
BANK:
CENTRAL VALLEY COMMUNITY BANK
By:
/s/Daniel J. Doyle
Name: Daniel J. Doyle
Title: CEO
|
INSURED:
JAMES FORD
/s/ James M. Ford
James M. Ford
|
Age of Insured at the
Time of Death |
Amount of Death Benefit, or 100%
of the proceeds, whichever amount is less |
64
|
$
|
65
|
|
66
|
|
67
|
|
68
|
|
69
|
|
70
|
|
71
|
|
72
|
|
73
|
|
74
|
|
75
|
|
76
|
|
77
|
|
78
|
|
79 or older
|
$0.00 and this Agreement automatically terminates
|
Age of Insured at the
Time of Death |
Amount of Death Benefit, or 100%
of the proceeds, whichever amount is less |
64
|
|
65
|
|
66
|
|
67
|
|
68
|
|
69
|
|
70
|
|
71
|
|
72
|
|
73
|
|
74
|
|
75
|
|
76
|
|
77
|
|
78
|
|
79 or older
|
$0.00 and this Agreement automatically terminates
|
1.
|
Twenty percent (20%) of the Restricted Stock constituting the Initial Award will vest on February 1, 2015 (Initial Award Vesting Commencement Date). Thereafter, twenty percent (20%) of the remaining Restricted Stock constituting the Initial Award will vest on each anniversary of the Initial Award Vesting Commencement Date, such that all Restricted Stock
|
2.
|
Twenty percent (20%) of the Restricted Stock constituting the Second Award will vest on February 1, 2016 (Second Award Vesting Commencement Date). Thereafter, twenty percent (20%) of the remaining Restricted Stock constituting the Second Award will vest on each anniversary of the Second Award Vesting Commencement Date, such that all Restricted Stock constituting the Second Award will be Vested Restricted Stock on the fourth anniversary of the Second Award Vesting Commencement Date.
|
3.
|
Twenty percent (20%) of the Restricted Stock constituting the Third Award will vest on February 1, 2017 (Third Award Vesting Commencement Date). Thereafter, twenty percent (20%) of the remaining Restricted Stock constituting the Third Award will vest on each anniversary of the Third Award Vesting Commencement Date, such that all Restricted Stock constituting the Third Award will be Vested Restricted Stock on the fourth anniversary of the Third Award Vesting Commencement Date.
|
4.
|
As of each vesting date, restrictions placed upon the specified Restricted Stock will lapse, subject to Participant’s Continuous Service through the vesting date. The Company’s secretary will retain custody of Participant’s original stock certificates for safekeeping.
|
C.
|
Acceleration.
|
D.
|
Limitation of Benefits under Certain Circumstances.
|
E.
|
Regulatory Compliance.
|
F.
|
Clawback.
|
1.
|
Withholding Taxes.
|
2.
|
Rights as a Restricted Shareholder or Vested Restricted Shareholder.
|
3.
|
Further Assurances.
|
/s/ Daniel J. Doyle
|
|
Date: May 12, 2014
|
Daniel J. Doyle,
|
|
|
/s/ David A. Kinross
|
|
Date: May 12, 2014
|
David A. Kinross,
|
|
|
|
/s/ Daniel J. Doyle
|
|
DANIEL J. DOYLE
|
|
President and Chief Executive Officer
|
|
/s/ David A. Kinross
|
|
DAVID A. KINROSS
|
|
Senior Vice President and Chief Financial Officer
|