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CALIFORNIA
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77-0539125
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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7100 N. Financial Dr., Suite 101, Fresno, CA
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93720
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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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Name of Each Exchange on which Registered
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Common Stock, no par value
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NASDAQ Capital Market
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Large accelerated filer
o
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Accelerated filer
x
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Non-accelerated filer
o
(Do not check if a smaller reporting company)
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Smaller reporting company
o
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Emerging reporting company
o
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Common Stock, No Par Value
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Outstanding at March 7, 2019
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13,712,431
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shares
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ITEM 1 -
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DESCRIPTION OF BUSINESS
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•
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the loans must be made on substantially the same terms, including interest rates and collateral, as prevailing at the time for comparable transactions with persons not affiliated with the Bank;
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•
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the Bank must follow credit underwriting procedures at least as stringent as those applicable to comparable transactions with persons who are not affiliated with the Bank; and
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•
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the loans must not involve a greater than normal risk of non-payment or include other features not favorable to the Bank.
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•
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assigning exposures secured by single-family residential properties to either a 50% risk weight for first-lien mortgages that meet prudent underwriting standards or a 100% risk weight category for all other mortgages;
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•
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providing for a 20% credit conversion factor for the unused portion of a commitment with an original maturity of one year or less that is not unconditionally cancellable (increased from 0% under the previous risk-based capital rules);
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•
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assigning a 150% risk weight to all exposures that are nonaccrual or 90 days or more past due (increased from 100% under the previous risk-based capital rules), except for those secured by single-family residential properties, which will be assigned a 100% risk weight, consistent with the Basel I risk-based capital rules;
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•
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applying a 150% risk weight instead of a 100% risk weight for certain high volatility CRE acquisition, development and construction loans; and
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•
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applying a 250% risk weight to the portion of mortgage servicing rights and deferred tax assets arising from temporary differences that could not be realized through net operating loss carrybacks that are not deducted from CET1 capital (increased from 100% under the previous Basel I risk-based capital rules).
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ITEM 1A -
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RISK FACTORS
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•
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loan delinquencies and defaults may increase;
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•
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problem assets and foreclosures may increase;
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•
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demand for our products and services may decline;
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•
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low cost or noninterest bearing deposits may decrease;
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•
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collateral for loans may decline in value, in turn reducing customers’ borrowing power, and reducing the value of assets and collateral as sources of repayment of existing loans;
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•
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foreclosed assets may not be able to be sold;
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•
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volatile securities market conditions could adversely affect valuations of investment portfolio assets; and
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•
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reputational risk may increase due to public sentiment regarding the banking industry.
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•
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inflation;
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•
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recession;
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•
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competition;
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•
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a rise in unemployment;
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•
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tightening money supply;
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•
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international disorder; and
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•
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instability in domestic and foreign financial markets.
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•
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actual or anticipated quarterly fluctuations in our operating results and financial condition;
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•
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changes in financial estimates or publication of research reports and recommendations by financial analysts or actions taken by rating agencies with respect to our common stock or those of other financial institutions;
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•
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failure to meet analysts’ revenue or earnings estimates;
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•
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speculation in the press or investment community generally or relating to our reputation, our market area, our competitors or the financial services industry in general;
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•
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strategic actions by us or our competitors, such as acquisitions, restructurings, dispositions or financings;
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•
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actions by our current shareholders, including sales of common stock by existing shareholders and/or directors and executive officers;
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•
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fluctuations in the stock price and operating results of our competitors;
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•
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future sales of our equity, equity-related or debt securities;
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•
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changes in the frequency or amount of dividends or share repurchases;
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•
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proposed or adopted regulatory changes or developments;
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•
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anticipated or pending investigations, proceedings, or litigation that involves or affects us;
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•
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trading activities in our common stock, including short-selling;
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•
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domestic and international economic factors unrelated to our performance; and
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•
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general market conditions and, in particular, developments related to market conditions for the financial services industry.
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ITEM 1B -
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UNRESOLVED STAFF COMMENTS
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ITEM 2 -
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DESCRIPTION OF PROPERTY
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ITEM 3 -
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LEGAL PROCEEDINGS
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ITEM 4 -
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MINE SAFETY DISCLOSURES
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ITEM 5 -
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MARKET FOR COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
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Quarter 1
2017 |
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Quarter 2
2017 |
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Quarter 3
2017 |
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Quarter 4
2017 |
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Quarter 1
2018 |
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Quarter 2
2018 |
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Quarter 3
2018 |
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Quarter 4
2018 |
||||||||||||||||
High
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$
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22.44
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$
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23.94
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$
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23.28
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$
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22.75
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$
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21.70
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$
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22.34
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$
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22.14
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$
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21.89
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Low
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$
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18.42
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$
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17.62
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$
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18.57
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$
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19.06
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$
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18.05
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$
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19.02
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$
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20.82
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$
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15.66
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Dividends per share
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$
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0.06
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$
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0.06
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$
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0.06
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$
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0.06
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$
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0.07
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$
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0.07
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$
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0.08
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$
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0.09
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Period
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Total number of shares purchased
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Average price paid per share
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Total number of shares purchased as part of publicly announced plans (1) (2)
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Approximate dollar value of shares that may yet be purchased under current plans (in thousands)
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10/1/2018 - 10/31/2018
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—
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$
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—
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—
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$
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10,000
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11/1/2018 - 11/30/2018
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—
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—
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—
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10,000
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12/1/2018 - 12/31/2018
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47,862
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18.68
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47,862
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9,106
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Total
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47,862
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$
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18.68
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47,862
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Number of
securities to be
issued upon
exercise of
outstanding
options, warrants
and rights
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Weighted-
average exercise
price of
outstanding
options, warrants
and rights
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Number of securities
remaining available
for future issuance
under equity
compensation plans
(excluding securities
reflected in column
(a))
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Plan Category
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(a)
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(b)
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(c)
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Equity compensation plans approved by security holders
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154,440
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(1)
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$
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8.68
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809,996
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(2)
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Equity compensation plans not approved by security holders
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N/A
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N/A
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N/A
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Total
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154,440
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$
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8.68
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809,996
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ITEM 6 -
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SELECTED CONSOLIDATED FINANCIAL DATA
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Years Ended December 31,
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||||||||||||||||||
(In thousands, except per-share amounts)
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2018
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2017
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2016
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2015
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2014
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||||||||||
Statements of Income
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Total interest income
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$
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64,187
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$
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57,376
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$
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46,676
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$
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41,822
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$
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41,039
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Total interest expense
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1,484
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1,137
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1,096
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1,047
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1,156
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|||||
Net interest income before provision for credit losses
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62,703
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56,239
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45,580
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40,775
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39,883
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|||||
Provision for (reversal of) credit losses
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50
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(1,150
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)
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(5,850
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)
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600
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7,985
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|||||
Net interest income after provision for credit losses
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62,653
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57,389
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51,430
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40,175
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31,898
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|||||
Non-interest income
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10,324
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10,836
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9,591
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9,387
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8,164
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|||||
Non-interest expenses
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45,068
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44,406
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38,922
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36,016
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35,338
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|||||
Income before provision for (benefit from) income taxes
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27,909
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23,819
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22,099
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13,546
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4,724
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|||||
Provision for (benefit from) income taxes
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6,620
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9,793
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6,917
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2,582
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(570
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)
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Net income
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$
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21,289
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$
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14,026
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$
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15,182
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$
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10,964
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$
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5,294
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Basic earnings per share
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$
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1.55
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$
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1.12
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$
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1.34
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$
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1.00
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$
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0.48
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Diluted earnings per share
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$
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1.54
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$
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1.10
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$
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1.33
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$
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1.00
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$
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0.48
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Cash dividends declared per common share
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$
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0.31
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$
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0.24
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$
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0.24
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$
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0.18
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$
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0.20
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|
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December 31,
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||||||||||||||||||
(In thousands)
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2018
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2017
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2016
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2015
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2014
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||||||||||
Balances at end of year:
|
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|
|||||
Investment securities, Federal funds sold and deposits in other banks
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$
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477,932
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$
|
604,801
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$
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558,132
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$
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580,544
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$
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520,511
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Net loans
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909,591
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891,901
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747,302
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588,501
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564,280
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|||||
Total deposits
|
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1,282,298
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|
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1,425,687
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|
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1,255,979
|
|
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1,116,267
|
|
|
1,039,152
|
|
|||||
Total assets
|
|
1,537,836
|
|
|
1,661,655
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|
|
1,443,323
|
|
|
1,276,736
|
|
|
1,192,183
|
|
|||||
Shareholders’ equity
|
|
219,738
|
|
|
209,559
|
|
|
164,033
|
|
|
139,323
|
|
|
131,045
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|
|||||
Earning assets
|
|
1,406,987
|
|
|
1,505,436
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|
|
1,319,065
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|
|
1,173,591
|
|
|
1,074,942
|
|
|||||
Average balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Investment securities, Federal funds sold and deposits in other banks
|
|
$
|
526,606
|
|
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$
|
568,426
|
|
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$
|
560,860
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|
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$
|
529,046
|
|
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$
|
513,866
|
|
Net loans
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|
903,204
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|
|
784,085
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|
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636,475
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|
|
577,784
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|
|
531,382
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|
|||||
Total deposits
|
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1,333,754
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|
|
1,284,305
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1,144,231
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1,065,798
|
|
|
1,006,560
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|
|||||
Total assets
|
|
1,577,410
|
|
|
1,491,696
|
|
|
1,321,007
|
|
|
1,222,526
|
|
|
1,157,483
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|||||
Shareholders’ equity
|
|
211,324
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|
|
182,507
|
|
|
154,325
|
|
|
135,062
|
|
|
130,414
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|
|||||
Earning assets
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1,435,025
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|
|
1,358,930
|
|
|
1,205,142
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|
|
1,112,758
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|
|
1,052,097
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|
ITEM 7 -
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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
|
|
|
Year Ended December 31, 2018
|
|
Year Ended December 31, 2017
|
|
Year Ended December 31, 2016
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|||||||||||||||||||||||||||
(Dollars in thousands)
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Average
Interest
Rate
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Average
Interest
Rate
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Average
Interest
Rate
|
|||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|||||||||
Interest-earning deposits in other banks
|
|
$
|
24,055
|
|
|
$
|
459
|
|
|
1.91
|
%
|
|
$
|
36,709
|
|
|
$
|
424
|
|
|
1.16
|
%
|
|
$
|
53,514
|
|
|
$
|
289
|
|
|
0.54
|
%
|
Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Taxable securities
|
|
391,549
|
|
|
10,254
|
|
|
2.62
|
%
|
|
310,876
|
|
|
6,526
|
|
|
2.10
|
%
|
|
313,006
|
|
|
5,876
|
|
|
1.88
|
%
|
||||||
Non-taxable securities (1)
|
|
110,962
|
|
|
4,478
|
|
|
4.04
|
%
|
|
220,806
|
|
|
10,443
|
|
|
4.73
|
%
|
|
194,224
|
|
|
9,787
|
|
|
5.04
|
%
|
||||||
Total investment securities
|
|
502,511
|
|
|
14,732
|
|
|
2.93
|
%
|
|
531,682
|
|
|
16,969
|
|
|
3.19
|
%
|
|
507,230
|
|
|
15,663
|
|
|
3.09
|
%
|
||||||
Federal funds sold
|
|
40
|
|
|
1
|
|
|
2.10
|
%
|
|
35
|
|
|
—
|
|
|
1.50
|
%
|
|
116
|
|
|
—
|
|
|
0.51
|
%
|
||||||
Total securities and interest-earning deposits
|
|
526,606
|
|
|
15,192
|
|
|
2.88
|
%
|
|
568,426
|
|
|
17,393
|
|
|
3.06
|
%
|
|
560,860
|
|
|
15,952
|
|
|
2.84
|
%
|
||||||
Loans (2) (3)
|
|
908,419
|
|
|
49,936
|
|
|
5.50
|
%
|
|
790,504
|
|
|
43,534
|
|
|
5.51
|
%
|
|
644,282
|
|
|
34,051
|
|
|
5.29
|
%
|
||||||
Total interest-earning assets
|
|
1,435,025
|
|
|
$
|
65,128
|
|
|
4.54
|
%
|
|
1,358,930
|
|
|
$
|
60,927
|
|
|
4.48
|
%
|
|
1,205,142
|
|
|
$
|
50,003
|
|
|
4.15
|
%
|
|||
Allowance for credit losses
|
|
(8,924
|
)
|
|
|
|
|
|
|
|
(9,258
|
)
|
|
|
|
|
|
|
|
(10,098
|
)
|
|
|
|
|
||||||||
Nonaccrual loans
|
|
3,709
|
|
|
|
|
|
|
|
|
2,839
|
|
|
|
|
|
|
|
|
2,291
|
|
|
|
|
|
||||||||
Cash and due from banks
|
|
27,199
|
|
|
|
|
|
|
|
|
24,989
|
|
|
|
|
|
|
|
|
23,840
|
|
|
|
|
|
||||||||
Bank premises and equipment
|
|
9,148
|
|
|
|
|
|
|
|
|
9,310
|
|
|
|
|
|
|
|
|
9,053
|
|
|
|
|
|
||||||||
Other assets
|
|
111,253
|
|
|
|
|
|
|
|
|
104,886
|
|
|
|
|
|
|
|
|
90,779
|
|
|
|
|
|
||||||||
Total average assets
|
|
$
|
1,577,410
|
|
|
|
|
|
|
|
|
$
|
1,491,696
|
|
|
|
|
|
|
|
|
$
|
1,321,007
|
|
|
|
|
|
|||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Savings and NOW accounts
|
|
$
|
383,667
|
|
|
$
|
451
|
|
|
0.12
|
%
|
|
$
|
382,071
|
|
|
$
|
350
|
|
|
0.09
|
%
|
|
$
|
337,804
|
|
|
$
|
317
|
|
|
0.09
|
%
|
Money market accounts
|
|
285,568
|
|
|
419
|
|
|
0.15
|
%
|
|
264,581
|
|
|
211
|
|
|
0.08
|
%
|
|
249,620
|
|
|
133
|
|
|
0.05
|
%
|
||||||
Time certificates of deposit
|
|
111,214
|
|
|
283
|
|
|
0.25
|
%
|
|
137,666
|
|
|
408
|
|
|
0.30
|
%
|
|
139,656
|
|
|
525
|
|
|
0.38
|
%
|
||||||
Total interest-bearing deposits
|
|
780,449
|
|
|
1,153
|
|
|
0.15
|
%
|
|
784,318
|
|
|
969
|
|
|
0.12
|
%
|
|
727,080
|
|
|
975
|
|
|
0.13
|
%
|
||||||
Other borrowed funds
|
|
12,180
|
|
|
331
|
|
|
2.72
|
%
|
|
6,930
|
|
|
168
|
|
|
2.42
|
%
|
|
5,157
|
|
|
121
|
|
|
2.35
|
%
|
||||||
Total interest-bearing liabilities
|
|
792,629
|
|
|
$
|
1,484
|
|
|
0.19
|
%
|
|
791,248
|
|
|
$
|
1,137
|
|
|
0.14
|
%
|
|
732,237
|
|
|
$
|
1,096
|
|
|
0.15
|
%
|
|||
Non-interest bearing demand deposits
|
|
553,305
|
|
|
|
|
|
|
|
|
499,987
|
|
|
|
|
|
|
|
|
417,151
|
|
|
|
|
|
||||||||
Other liabilities
|
|
20,152
|
|
|
|
|
|
|
|
|
17,954
|
|
|
|
|
|
|
|
|
17,294
|
|
|
|
|
|
||||||||
Shareholders’ equity
|
|
211,324
|
|
|
|
|
|
|
|
|
182,507
|
|
|
|
|
|
|
|
|
154,325
|
|
|
|
|
|
||||||||
Total average liabilities and shareholders’ equity
|
|
$
|
1,577,410
|
|
|
|
|
|
|
|
|
$
|
1,491,696
|
|
|
|
|
|
|
|
|
$
|
1,321,007
|
|
|
|
|
|
|||||
Interest income and rate earned on average earning assets
|
|
|
|
|
$
|
65,128
|
|
|
4.54
|
%
|
|
|
|
|
$
|
60,927
|
|
|
4.48
|
%
|
|
|
|
$
|
50,003
|
|
|
4.15
|
%
|
||||
Interest expense and interest cost related to average interest-bearing liabilities
|
|
|
|
|
1,484
|
|
|
0.19
|
%
|
|
|
|
|
1,137
|
|
|
0.14
|
%
|
|
|
|
1,096
|
|
|
0.15
|
%
|
|||||||
Net interest income and net interest margin (4)
|
|
|
|
|
$
|
63,644
|
|
|
4.44
|
%
|
|
|
|
|
$
|
59,790
|
|
|
4.40
|
%
|
|
|
|
$
|
48,907
|
|
|
4.06
|
%
|
(1)
|
Interest income is calculated on a fully tax equivalent basis, which includes Federal tax benefits relating to income earned on municipal bonds totaling
$940
,
$3,551
, and
$3,327
in
2018
,
2017
, and
2016
, respectively.
|
(2)
|
Loan interest income includes loan fees of
$397
in
2018
,
$684
in
2017
, and
$134
in
2016
.
|
(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.
|
Changes in Volume/Rate
|
|
For the Years Ended December 31, 2018 Compared to 2017
|
|
For the Years Ended December 31, 2017 Compared to 2016
|
||||||||||||||||||||
(In thousands)
|
|
Volume
|
|
Rate
|
|
Net
|
|
Volume
|
|
Rate
|
|
Net
|
||||||||||||
Increase (decrease) due to changes in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-earning deposits in other banks
|
|
$
|
(146
|
)
|
|
$
|
181
|
|
|
$
|
35
|
|
|
$
|
(90
|
)
|
|
$
|
225
|
|
|
$
|
135
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Taxable
|
|
1,694
|
|
|
2,034
|
|
|
3,728
|
|
|
(39
|
)
|
|
689
|
|
|
650
|
|
||||||
Non-taxable (1)
|
|
(5,196
|
)
|
|
(769
|
)
|
|
(5,965
|
)
|
|
1,339
|
|
|
(683
|
)
|
|
656
|
|
||||||
Total investment securities
|
|
(3,502
|
)
|
|
1,265
|
|
|
(2,237
|
)
|
|
1,300
|
|
|
6
|
|
|
1,306
|
|
||||||
Federal funds sold
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Loans
|
|
6,493
|
|
|
(91
|
)
|
|
6,402
|
|
|
7,728
|
|
|
1,755
|
|
|
9,483
|
|
||||||
FHLB Stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
123
|
|
|
(310
|
)
|
|
(187
|
)
|
||||||
Total earning assets (1)
|
|
2,846
|
|
|
1,355
|
|
|
4,201
|
|
|
9,061
|
|
|
1,676
|
|
|
10,737
|
|
||||||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Savings, NOW and MMA
|
|
17
|
|
|
292
|
|
|
309
|
|
|
49
|
|
|
62
|
|
|
111
|
|
||||||
Time certificate of deposits
|
|
(78
|
)
|
|
(47
|
)
|
|
(125
|
)
|
|
(7
|
)
|
|
(110
|
)
|
|
(117
|
)
|
||||||
Total interest-bearing deposits
|
|
(61
|
)
|
|
245
|
|
|
184
|
|
|
42
|
|
|
(48
|
)
|
|
(6
|
)
|
||||||
Other borrowed funds
|
|
127
|
|
|
36
|
|
|
163
|
|
|
41
|
|
|
6
|
|
|
47
|
|
||||||
Total interest bearing liabilities
|
|
66
|
|
|
281
|
|
|
347
|
|
|
83
|
|
|
(42
|
)
|
|
41
|
|
||||||
Net interest income (1)
|
|
$
|
2,780
|
|
|
$
|
1,074
|
|
|
$
|
3,854
|
|
|
$
|
8,978
|
|
|
$
|
1,718
|
|
|
$
|
10,696
|
|
Loan Type
|
|
December 31, 2018
|
|
December 31, 2017
|
||||
Commercial:
|
|
|
|
|
||||
Commercial and industrial
|
|
$
|
1,604
|
|
|
$
|
1,784
|
|
Agricultural production
|
|
67
|
|
|
287
|
|
||
Real estate:
|
|
|
|
|
||||
Owner occupied
|
|
1,131
|
|
|
1,252
|
|
||
Real estate construction and other land loans
|
|
1,271
|
|
|
1,004
|
|
||
Commercial real estate
|
|
3,017
|
|
|
1,958
|
|
||
Agricultural real estate
|
|
947
|
|
|
1,441
|
|
||
Other real estate
|
|
173
|
|
|
140
|
|
||
Consumer:
|
|
|
|
|
||||
Equity loans and lines of credit
|
|
419
|
|
|
464
|
|
||
Consumer and installment
|
|
407
|
|
|
361
|
|
||
Unallocated reserves
|
|
68
|
|
|
87
|
|
||
Total allowance for credit losses
|
|
$
|
9,104
|
|
|
$
|
8,778
|
|
For the years ended December 31,
(Dollars in thousands)
|
|
Other
Expense
2018
|
|
%
Average
Assets
|
|
Other
Expense
2017
|
|
%
Average
Assets
|
|
Other
Expense
2016
|
|
%
Average
Assets
|
|||||||||
Stationery/supplies
|
|
$
|
281
|
|
|
0.02
|
%
|
|
$
|
292
|
|
|
0.02
|
%
|
|
$
|
247
|
|
|
0.02
|
%
|
Amortization of software
|
|
303
|
|
|
0.02
|
%
|
|
289
|
|
|
0.02
|
%
|
|
257
|
|
|
0.02
|
%
|
|||
Telephone
|
|
217
|
|
|
0.01
|
%
|
|
265
|
|
|
0.02
|
%
|
|
357
|
|
|
0.03
|
%
|
|||
Alarm
|
|
101
|
|
|
0.01
|
%
|
|
130
|
|
|
0.01
|
%
|
|
103
|
|
|
0.01
|
%
|
|||
Postage
|
|
209
|
|
|
0.01
|
%
|
|
205
|
|
|
0.01
|
%
|
|
200
|
|
|
0.02
|
%
|
|||
Armored courier fees
|
|
274
|
|
|
0.02
|
%
|
|
266
|
|
|
0.02
|
%
|
|
227
|
|
|
0.02
|
%
|
|||
Risk management expense
|
|
195
|
|
|
0.01
|
%
|
|
207
|
|
|
0.01
|
%
|
|
150
|
|
|
0.01
|
%
|
|||
Loss on sale or write-down of assets
|
|
2
|
|
|
—
|
%
|
|
187
|
|
|
0.01
|
%
|
|
4
|
|
|
—
|
%
|
|||
Donations
|
|
243
|
|
|
0.02
|
%
|
|
249
|
|
|
0.02
|
%
|
|
171
|
|
|
0.01
|
%
|
|||
Personnel other
|
|
167
|
|
|
0.01
|
%
|
|
259
|
|
|
0.02
|
%
|
|
161
|
|
|
0.01
|
%
|
|||
Credit card expense
|
|
121
|
|
|
0.01
|
%
|
|
245
|
|
|
0.02
|
%
|
|
196
|
|
|
0.01
|
%
|
|||
Education/training
|
|
172
|
|
|
0.01
|
%
|
|
174
|
|
|
0.01
|
%
|
|
154
|
|
|
0.01
|
%
|
|||
Loan related expenses
|
|
77
|
|
|
—
|
%
|
|
132
|
|
|
0.01
|
%
|
|
35
|
|
|
—
|
%
|
|||
General insurance
|
|
165
|
|
|
0.01
|
%
|
|
159
|
|
|
0.01
|
%
|
|
159
|
|
|
0.01
|
%
|
|||
Travel and mileage Expense
|
|
267
|
|
|
0.02
|
%
|
|
211
|
|
|
0.01
|
%
|
|
146
|
|
|
0.01
|
%
|
|||
Operating losses
|
|
452
|
|
|
0.03
|
%
|
|
150
|
|
|
0.01
|
%
|
|
175
|
|
|
0.01
|
%
|
|||
Shareholder services
|
|
129
|
|
|
0.01
|
%
|
|
102
|
|
|
0.01
|
%
|
|
83
|
|
|
0.01
|
%
|
|||
Other
|
|
1,261
|
|
|
0.08
|
%
|
|
1,489
|
|
|
0.10
|
%
|
|
976
|
|
|
0.07
|
%
|
|||
Total other non-interest expense
|
|
$
|
4,636
|
|
|
0.29
|
%
|
|
$
|
5,011
|
|
|
0.34
|
%
|
|
$
|
3,801
|
|
|
0.29
|
%
|
Available-for-Sale Securities
|
|
Amortized Cost at December 31,
|
||||||||||
(In thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Treasuries
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
U.S. Government agencies
|
|
21,723
|
|
|
65,994
|
|
|
69,005
|
|
|||
Obligations of states and political subdivisions
|
|
79,886
|
|
|
136,955
|
|
|
288,543
|
|
|||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
|
|
239,388
|
|
|
237,210
|
|
|
181,785
|
|
|||
Private label mortgage and asset backed securities
|
|
129,165
|
|
|
91,033
|
|
|
1,807
|
|
|||
Total Available-for-Sale Securities
|
|
$
|
470,162
|
|
|
$
|
531,192
|
|
|
$
|
541,140
|
|
(Dollars in thousands)
|
|
In one year or less
|
|
After one through five
years
|
|
After five through ten years
|
|
After ten years
|
|
Total
|
|||||||||||||||||||||||||
Available-for-Sale Securities
|
|
Amount
|
|
Yield(1)
|
|
Amount
|
|
Yield(1)
|
|
Amount
|
|
Yield(1)
|
|
Amount
|
|
Yield(1)
|
|
Amount
|
|
Yield(1)
|
|||||||||||||||
Debt securities(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
U.S. Government agencies
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
5,591
|
|
|
6.16
|
%
|
|
$
|
16,132
|
|
|
5.48
|
%
|
|
$
|
21,723
|
|
|
5.65
|
%
|
Obligations of states and political subdivisions (2)
|
|
—
|
|
|
—
|
|
|
2,769
|
|
|
2.13
|
%
|
|
21,831
|
|
|
4.24
|
%
|
|
55,286
|
|
|
4.56
|
%
|
|
79,886
|
|
|
4.39
|
%
|
|||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
|
|
—
|
|
|
—
|
|
|
136
|
|
|
5.90
|
%
|
|
266
|
|
|
5.18
|
%
|
|
238,987
|
|
|
3.93
|
%
|
|
239,389
|
|
|
3.94
|
%
|
|||||
Private label residential mortgage and asset backed securities
|
|
47
|
|
|
4.75
|
%
|
|
—
|
|
|
—
|
%
|
|
15
|
|
|
7.22
|
%
|
|
129,102
|
|
|
3.74
|
%
|
|
129,164
|
|
|
3.74
|
%
|
|||||
|
|
$
|
47
|
|
|
4.75
|
%
|
|
$
|
2,905
|
|
|
2.31
|
%
|
|
$
|
27,703
|
|
|
4.63
|
%
|
|
$
|
439,507
|
|
|
4.15
|
%
|
|
$
|
470,162
|
|
|
4.04
|
%
|
(1)
|
Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. Expected maturities will also differ from contractual maturities due to unscheduled principal pay downs.
|
(2)
|
Not computed on a tax equivalent basis.
|
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||||||||||||
Loan Type (Dollars in thousands)
|
|
Amount
|
|
% of Total Loans
|
|
Amount
|
|
% of Total Loans
|
|
Amount
|
|
% of Total Loans
|
|
Amount
|
|
% of Total Loans
|
|
Amount
|
|
% of Total Loans
|
|||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Commercial and industrial
|
|
$
|
101,533
|
|
|
11.1
|
%
|
|
$
|
100,856
|
|
|
11.2
|
%
|
|
$
|
88,652
|
|
|
11.7
|
%
|
|
$
|
102,197
|
|
|
17.1
|
%
|
|
$
|
89,007
|
|
|
15.5
|
%
|
Agricultural production
|
|
7,998
|
|
|
0.9
|
%
|
|
14,956
|
|
|
1.7
|
%
|
|
25,509
|
|
|
3.4
|
%
|
|
30,472
|
|
|
5.1
|
%
|
|
39,140
|
|
|
6.8
|
%
|
|||||
Total commercial
|
|
109,531
|
|
|
12.0
|
%
|
|
115,812
|
|
|
12.9
|
%
|
|
114,161
|
|
|
15.1
|
%
|
|
132,669
|
|
|
22.2
|
%
|
|
128,147
|
|
|
22.3
|
%
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Owner occupied
|
|
183,169
|
|
|
19.9
|
%
|
|
204,452
|
|
|
22.7
|
%
|
|
191,665
|
|
|
25.3
|
%
|
|
168,910
|
|
|
28.2
|
%
|
|
176,804
|
|
|
30.9
|
%
|
|||||
Real estate-construction and other land loans
|
|
101,606
|
|
|
11.1
|
%
|
|
96,460
|
|
|
10.7
|
%
|
|
69,200
|
|
|
9.1
|
%
|
|
38,685
|
|
|
6.5
|
%
|
|
38,923
|
|
|
6.8
|
%
|
|||||
Commercial real estate
|
|
305,118
|
|
|
33.2
|
%
|
|
269,254
|
|
|
29.9
|
%
|
|
184,225
|
|
|
24.3
|
%
|
|
117,244
|
|
|
19.6
|
%
|
|
106,788
|
|
|
18.7
|
%
|
|||||
Agricultural real estate
|
|
76,884
|
|
|
8.4
|
%
|
|
76,081
|
|
|
8.4
|
%
|
|
86,761
|
|
|
11.5
|
%
|
|
74,867
|
|
|
12.5
|
%
|
|
57,501
|
|
|
10.0
|
%
|
|||||
Other real estate
|
|
32,799
|
|
|
3.6
|
%
|
|
31,220
|
|
|
3.5
|
%
|
|
18,945
|
|
|
2.7
|
%
|
|
10,520
|
|
|
1.8
|
%
|
|
6,611
|
|
|
1.2
|
%
|
|||||
Total real estate
|
|
699,576
|
|
|
76.2
|
%
|
|
677,467
|
|
|
75.2
|
%
|
|
550,796
|
|
|
72.9
|
%
|
|
410,226
|
|
|
68.6
|
%
|
|
386,627
|
|
|
67.6
|
%
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Equity loans and lines of credit
|
|
69,958
|
|
|
7.6
|
%
|
|
76,404
|
|
|
8.5
|
%
|
|
64,494
|
|
|
8.5
|
%
|
|
42,296
|
|
|
7.1
|
%
|
|
47,575
|
|
|
8.3
|
%
|
|||||
Consumer and installment
|
|
38,038
|
|
|
4.2
|
%
|
|
29,637
|
|
|
3.4
|
%
|
|
25,910
|
|
|
3.5
|
%
|
|
12,503
|
|
|
2.1
|
%
|
|
10,093
|
|
|
1.8
|
%
|
|||||
Total consumer
|
|
107,996
|
|
|
11.8
|
%
|
|
106,041
|
|
|
11.9
|
%
|
|
90,404
|
|
|
12.0
|
%
|
|
54,799
|
|
|
9.2
|
%
|
|
57,668
|
|
|
10.1
|
%
|
|||||
Deferred loan fees, net
|
|
1,592
|
|
|
|
|
|
1,359
|
|
|
|
|
|
1,267
|
|
|
|
|
417
|
|
|
|
|
146
|
|
|
|
||||||||
Total gross loans (1)
|
|
918,695
|
|
|
100.0
|
%
|
|
900,679
|
|
|
100.0
|
%
|
|
756,628
|
|
|
100.0
|
%
|
|
598,111
|
|
|
100.0
|
%
|
|
572,588
|
|
|
100.0
|
%
|
|||||
Allowance for credit losses
|
|
(9,104
|
)
|
|
|
|
|
(8,778
|
)
|
|
|
|
|
(9,326
|
)
|
|
|
|
(9,610
|
)
|
|
|
|
(8,308
|
)
|
|
|
||||||||
Total loans (1)
|
|
$
|
909,591
|
|
|
|
|
|
$
|
891,901
|
|
|
|
|
|
$
|
747,302
|
|
|
|
|
$
|
588,501
|
|
|
|
|
$
|
564,280
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
(1) Includes nonaccrual loans of:
|
|
$
|
2,740
|
|
|
|
|
$
|
2,875
|
|
|
|
|
$
|
2,180
|
|
|
|
|
$
|
2,413
|
|
|
|
|
$
|
14,052
|
|
|
|
(In thousands) (net of deferred costs)
|
|
One Year or
Less |
|
After One
Through Five Years |
|
After Five
Years |
|
Total
|
||||||||
Loan Maturities:
|
|
|
|
|
|
|
|
|
||||||||
Commercial and agricultural
|
|
$
|
58,040
|
|
|
$
|
25,372
|
|
|
$
|
26,119
|
|
|
$
|
109,531
|
|
Real estate construction and other land loans
|
|
89,665
|
|
|
9,687
|
|
|
3,130
|
|
|
102,482
|
|
||||
Other real estate
|
|
29,220
|
|
|
117,222
|
|
|
450,652
|
|
|
597,094
|
|
||||
Consumer and installment
|
|
9,730
|
|
|
13,724
|
|
|
84,542
|
|
|
107,996
|
|
||||
|
|
$
|
186,655
|
|
|
$
|
166,005
|
|
|
$
|
564,443
|
|
|
$
|
917,103
|
|
Sensitivity to Changes in Interest Rates:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loans with fixed interest rates
|
|
$
|
78,692
|
|
|
$
|
93,650
|
|
|
$
|
80,448
|
|
|
$
|
252,790
|
|
Loans with floating interest rates (1)
|
|
107,962
|
|
|
72,355
|
|
|
483,996
|
|
|
664,313
|
|
||||
|
|
$
|
186,654
|
|
|
$
|
166,005
|
|
|
$
|
564,444
|
|
|
$
|
917,103
|
|
|
|
|
|
|
|
|
|
|
||||||||
(1) Includes floating rate loans which are currently at their floor rate in accordance with their respective loan agreement
|
|
$
|
3,424
|
|
|
$
|
12,659
|
|
|
$
|
357,319
|
|
|
$
|
373,402
|
|
(As of December 31, Dollars in thousands)
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Nonaccrual Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
|
$
|
298
|
|
|
$
|
356
|
|
|
$
|
447
|
|
|
$
|
—
|
|
|
$
|
7,265
|
|
Owner occupied real estate
|
|
215
|
|
|
—
|
|
|
87
|
|
|
324
|
|
|
1,363
|
|
|||||
Real estate construction and other land loans
|
|
1,439
|
|
|
1,397
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Agricultural real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
360
|
|
|||||
Commercial real estate
|
|
418
|
|
|
976
|
|
|
1,082
|
|
|
567
|
|
|
1,468
|
|
|||||
Equity loans and line of credit
|
|
320
|
|
|
87
|
|
|
526
|
|
|
172
|
|
|
1,751
|
|
|||||
Consumer and installment
|
|
—
|
|
|
—
|
|
|
18
|
|
|
13
|
|
|
19
|
|
|||||
Restructured loans (non-accruing):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29
|
|
|
—
|
|
|||||
Owner occupied
|
|
—
|
|
|
—
|
|
|
20
|
|
|
23
|
|
|
—
|
|
|||||
Real estate construction and other land loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
547
|
|
|||||
Equity loans and line of credit
|
|
50
|
|
|
59
|
|
|
—
|
|
|
1,285
|
|
|
1,279
|
|
|||||
Total nonaccrual
|
|
2,740
|
|
|
2,875
|
|
|
2,180
|
|
|
2,413
|
|
|
14,052
|
|
|||||
Accruing loans past due 90 days or more
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total nonperforming loans
|
|
$
|
2,740
|
|
|
$
|
2,875
|
|
|
$
|
2,180
|
|
|
$
|
2,413
|
|
|
$
|
14,052
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest foregone
|
|
$
|
267
|
|
|
$
|
210
|
|
|
$
|
245
|
|
|
$
|
340
|
|
|
$
|
716
|
|
Nonperforming loans to total loans
|
|
0.30
|
%
|
|
0.32
|
%
|
|
0.29
|
%
|
|
0.40
|
%
|
|
2.45
|
%
|
|||||
Accruing loans past due 90 days or more
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Accruing troubled debt restructurings
|
|
$
|
3,170
|
|
|
$
|
3,491
|
|
|
$
|
3,089
|
|
|
$
|
4,774
|
|
|
$
|
4,774
|
|
Ratio of nonperforming loans to allowance for credit losses
|
|
30.10
|
%
|
|
32.75
|
%
|
|
23.38
|
%
|
|
25.11
|
%
|
|
169.14
|
%
|
|||||
Loans considered to be impaired
|
|
$
|
5,909
|
|
|
$
|
6,366
|
|
|
$
|
5,269
|
|
|
$
|
6,699
|
|
|
$
|
18,826
|
|
Related allowance for credit losses on impaired loans
|
|
$
|
90
|
|
|
$
|
36
|
|
|
$
|
307
|
|
|
$
|
164
|
|
|
$
|
612
|
|
(In thousands)
|
|
Balances December 31, 2017
|
|
Additions to Nonaccrual Loans
|
|
Net Pay Downs
|
|
Transfer to Foreclosed Collateral
|
|
Returns to Accrual Status
|
|
Charge Offs
|
|
Balances December 31, 2018
|
||||||||||||||
Non-accrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
|
$
|
356
|
|
|
$
|
40
|
|
|
$
|
(98
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
298
|
|
Real estate
|
|
976
|
|
|
1,379
|
|
|
(1,252
|
)
|
|
—
|
|
|
(470
|
)
|
|
—
|
|
|
633
|
|
|||||||
Real estate construction and other land loans
|
|
1,397
|
|
|
42
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,439
|
|
|||||||
Equity loans and lines of credit
|
|
87
|
|
|
283
|
|
|
(42
|
)
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
320
|
|
|||||||
Consumer
|
|
—
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|||||||
Restructured loans (non-accruing):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Equity loans and lines of credit
|
|
59
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
50
|
|
|||||||
Total non-accrual
|
|
$
|
2,875
|
|
|
$
|
1,756
|
|
|
$
|
(1,401
|
)
|
|
$
|
—
|
|
|
$
|
(478
|
)
|
|
$
|
(12
|
)
|
|
$
|
2,740
|
|
(Dollars in thousands)
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Loans outstanding at December 31,
|
|
$
|
917,103
|
|
|
$
|
899,320
|
|
|
$
|
755,361
|
|
|
$
|
597,694
|
|
|
$
|
572,442
|
|
Average loans outstanding during the year
|
|
$
|
912,128
|
|
|
$
|
793,343
|
|
|
$
|
646,573
|
|
|
$
|
586,762
|
|
|
$
|
539,529
|
|
Allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance at beginning of year
|
|
$
|
8,778
|
|
|
$
|
9,326
|
|
|
$
|
9,610
|
|
|
$
|
8,308
|
|
|
$
|
9,208
|
|
Deduct loans charged off:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
(94
|
)
|
|
(197
|
)
|
|
(621
|
)
|
|
(802
|
)
|
|
(7,423
|
)
|
|||||
Agricultural production
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
(1,722
|
)
|
|||||
Owner occupied
|
|
—
|
|
|
(22
|
)
|
|
—
|
|
|
—
|
|
|
(183
|
)
|
|||||
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer loans
|
|
(116
|
)
|
|
(235
|
)
|
|
(262
|
)
|
|
(159
|
)
|
|
(506
|
)
|
|||||
Total loans charged off
|
|
(210
|
)
|
|
(464
|
)
|
|
(883
|
)
|
|
(961
|
)
|
|
(9,834
|
)
|
|||||
Add recoveries of loans previously charged off:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial and industrial
|
|
207
|
|
|
850
|
|
|
3,656
|
|
|
954
|
|
|
171
|
|
|||||
Agricultural production
|
|
—
|
|
|
10
|
|
|
1,631
|
|
|
90
|
|
|
—
|
|
|||||
Owner occupied
|
|
21
|
|
|
49
|
|
|
—
|
|
|
—
|
|
|
150
|
|
|||||
Real estate construction and other land loans
|
|
—
|
|
|
—
|
|
|
702
|
|
|
32
|
|
|
364
|
|
|||||
Commercial real estate
|
|
81
|
|
|
17
|
|
|
283
|
|
|
—
|
|
|
—
|
|
|||||
Consumer loans
|
|
177
|
|
|
140
|
|
|
177
|
|
|
587
|
|
|
264
|
|
|||||
Total recoveries
|
|
486
|
|
|
1,066
|
|
|
6,449
|
|
|
1,663
|
|
|
949
|
|
|||||
Net recoveries (charge offs)
|
|
276
|
|
|
602
|
|
|
5,566
|
|
|
702
|
|
|
(8,885
|
)
|
|||||
(Reversal) Provision charged to credit losses
|
|
50
|
|
|
(1,150
|
)
|
|
(5,850
|
)
|
|
600
|
|
|
7,985
|
|
|||||
Balance at end of year
|
|
$
|
9,104
|
|
|
$
|
8,778
|
|
|
$
|
9,326
|
|
|
$
|
9,610
|
|
|
$
|
8,308
|
|
Allowance for credit losses as a percentage of outstanding loan balance
|
|
0.99
|
%
|
|
0.98
|
%
|
|
1.23
|
%
|
|
1.61
|
%
|
|
1.45
|
%
|
|||||
Net recoveries (charge offs) to average loans outstanding
|
|
0.03
|
%
|
|
0.08
|
%
|
|
0.86
|
%
|
|
0.12
|
%
|
|
(1.65
|
)%
|
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||||||||||||
Loan Type
(Dollars in thousands)
|
|
Amount
|
|
Percent
of Loans in Each Category to Total Loans |
|
Amount
|
|
Percent
of Loans in Each Category to Total Loans |
|
Amount
|
|
Percent
of Loans in Each Category to Total Loans |
|
Amount
|
|
Percent
of Loans in Each Category to Total Loans |
|
Amount
|
|
Percent
of Loans in Each Category to Total Loans |
|||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial and industrial
|
|
$
|
1,604
|
|
|
11.1
|
%
|
|
$
|
1,784
|
|
|
11.2
|
%
|
|
$
|
1,884
|
|
|
11.7
|
%
|
|
$
|
3,143
|
|
|
17.1
|
%
|
|
$
|
2,753
|
|
|
15.5
|
%
|
Agricultural production
|
|
67
|
|
|
0.9
|
%
|
|
287
|
|
|
1.7
|
%
|
|
296
|
|
|
3.4
|
%
|
|
419
|
|
|
5.1
|
%
|
|
377
|
|
|
6.8
|
%
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Owner occupied
|
|
1,131
|
|
|
19.9
|
%
|
|
1,252
|
|
|
22.7
|
%
|
|
1,408
|
|
|
25.3
|
%
|
|
1,556
|
|
|
28.2
|
%
|
|
1,380
|
|
|
30.9
|
%
|
|||||
Real estate construction and other land loans
|
|
1,271
|
|
|
11.1
|
%
|
|
1,004
|
|
|
10.7
|
%
|
|
698
|
|
|
9.1
|
%
|
|
694
|
|
|
6.5
|
%
|
|
837
|
|
|
6.8
|
%
|
|||||
Commercial real estate
|
|
3,017
|
|
|
33.2
|
%
|
|
1,958
|
|
|
29.9
|
%
|
|
1,969
|
|
|
24.3
|
%
|
|
1,686
|
|
|
19.6
|
%
|
|
1,201
|
|
|
18.7
|
%
|
|||||
Agricultural real estate
|
|
947
|
|
|
8.4
|
%
|
|
1,441
|
|
|
8.4
|
%
|
|
1,969
|
|
|
11.5
|
%
|
|
1,149
|
|
|
12.5
|
%
|
|
564
|
|
|
10
|
%
|
|||||
Other real estate
|
|
173
|
|
|
3.6
|
%
|
|
140
|
|
|
3.5
|
%
|
|
156
|
|
|
2.7
|
%
|
|
119
|
|
|
1.8
|
%
|
|
76
|
|
|
1.2
|
%
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Equity loans and lines of credit
|
|
419
|
|
|
7.6
|
%
|
|
464
|
|
|
8.5
|
%
|
|
483
|
|
|
8.5
|
%
|
|
500
|
|
|
7.1
|
%
|
|
811
|
|
|
8.3
|
%
|
|||||
Consumer and installment
|
|
407
|
|
|
4.2
|
%
|
|
361
|
|
|
3.4
|
%
|
|
369
|
|
|
3.5
|
%
|
|
234
|
|
|
2.1
|
%
|
|
267
|
|
|
1.8
|
%
|
|||||
Unallocated reserves
|
|
68
|
|
|
|
|
87
|
|
|
|
|
94
|
|
|
|
|
110
|
|
|
|
|
42
|
|
|
|
||||||||||
Total allowance for credit losses
|
|
$
|
9,104
|
|
|
100
|
%
|
|
$
|
8,778
|
|
|
100.0
|
%
|
|
$
|
9,326
|
|
|
100
|
%
|
|
$
|
9,610
|
|
|
100
|
%
|
|
$
|
8,308
|
|
|
100
|
%
|
(Dollars in thousands)
|
|
December 31,
2018 |
|
% of Total
Deposits
|
|
Effective
Rate
|
|
December 31,
2017 |
|
% of Total
Deposits
|
|
Effective
Rate
|
||||||||
NOW accounts
|
|
$
|
252,439
|
|
|
19.7
|
%
|
|
0.16
|
%
|
|
$
|
296,406
|
|
|
20.8
|
%
|
|
0.12
|
%
|
MMA accounts
|
|
267,820
|
|
|
20.9
|
%
|
|
0.15
|
%
|
|
299,638
|
|
|
21.0
|
%
|
|
0.08
|
%
|
||
Time deposits
|
|
96,817
|
|
|
7.6
|
%
|
|
0.25
|
%
|
|
128,070
|
|
|
9.0
|
%
|
|
0.30
|
%
|
||
Savings deposits
|
|
114,565
|
|
|
8.9
|
%
|
|
0.03
|
%
|
|
116,534
|
|
|
8.2
|
%
|
|
0.03
|
%
|
||
Total interest-bearing
|
|
731,641
|
|
|
57.1
|
%
|
|
0.15
|
%
|
|
840,648
|
|
|
59.0
|
%
|
|
0.12
|
%
|
||
Non-interest bearing
|
|
550,657
|
|
|
42.9
|
%
|
|
|
|
|
585,039
|
|
|
41.0
|
%
|
|
|
|
||
Total deposits
|
|
$
|
1,282,298
|
|
|
100.0
|
%
|
|
|
|
|
$
|
1,425,687
|
|
|
100.0
|
%
|
|
|
|
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
(Dollars in thousands)
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|||||||||
Savings and NOW accounts
|
|
383,667
|
|
|
0.12
|
%
|
|
382,071
|
|
|
0.09
|
%
|
|
337,804
|
|
|
0.09
|
%
|
|||
Money market accounts
|
|
$
|
285,568
|
|
|
0.15
|
%
|
|
$
|
264,581
|
|
|
0.08
|
%
|
|
$
|
249,620
|
|
|
0.05
|
%
|
Time certificates of deposit
|
|
$
|
111,214
|
|
|
0.25
|
%
|
|
$
|
137,666
|
|
|
0.30
|
%
|
|
$
|
139,656
|
|
|
0.38
|
%
|
Non-interest bearing demand
|
|
$
|
553,305
|
|
|
—
|
|
|
$
|
499,987
|
|
|
—
|
|
|
$
|
417,151
|
|
|
—
|
|
Total deposits
|
|
$
|
1,333,754
|
|
|
0.09
|
%
|
|
$
|
1,284,305
|
|
|
0.08
|
%
|
|
$
|
1,144,231
|
|
|
0.09
|
%
|
Credit Lines (In thousands)
|
|
December 31, 2018
|
|
December 31, 2017
|
||||
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
|
|
286,934
|
|
|
234,689
|
|
||
Balance outstanding
|
|
$
|
10,000
|
|
|
$
|
—
|
|
Collateral pledged
|
|
$
|
448,083
|
|
|
$
|
357,393
|
|
Fair value of collateral
|
|
$
|
399,027
|
|
|
$
|
316,160
|
|
Federal Reserve Bank (interest rate at prevailing discount interest rate):
|
|
|
|
|
|
|
||
Credit limit
|
|
$
|
4,364
|
|
|
$
|
6,740
|
|
Balance outstanding
|
|
$
|
—
|
|
|
$
|
—
|
|
Collateral pledged
|
|
$
|
4,498
|
|
|
$
|
7,431
|
|
Fair value of collateral
|
|
$
|
4,475
|
|
|
$
|
7,437
|
|
(In thousands)
|
Less Than One Year
|
|
One to Three Years
|
|
Three to Five Years
|
|
After Five Years
|
|
Total
|
||||||||||
Deposits
|
$
|
1,257,349
|
|
|
$
|
21,318
|
|
|
$
|
2,521
|
|
|
$
|
1,110
|
|
|
$
|
1,282,298
|
|
Subordinated notes
|
—
|
|
|
—
|
|
|
—
|
|
|
5,155
|
|
|
5,155
|
|
|||||
Operating leases
|
2,384
|
|
|
3,883
|
|
|
3,000
|
|
|
4,334
|
|
|
13,601
|
|
|||||
Total
|
$
|
1,259,733
|
|
|
$
|
25,201
|
|
|
$
|
5,521
|
|
|
$
|
10,599
|
|
|
$
|
1,301,054
|
|
Hypothetical Change in Rates (Dollars in thousands)
|
|
Projected Net Interest Income
|
|
$ Change from Rates at December 31, 2018
|
|
% Change from Rates at December 31, 2018
|
|||||
Up 400 bps
|
|
$
|
67,200
|
|
|
$
|
2,300
|
|
|
3.54
|
%
|
Up 300 bps
|
|
66,500
|
|
|
1,600
|
|
|
2.47
|
%
|
||
Up 200 bps
|
|
65,500
|
|
|
600
|
|
|
0.92
|
%
|
||
Up 100 bps
|
|
65,200
|
|
|
300
|
|
|
0.46
|
%
|
||
Unchanged
|
|
64,900
|
|
|
—
|
|
|
—
|
|
||
Down 100 bps
|
|
60,900
|
|
|
(4,000
|
)
|
|
(6.16
|
)%
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||
Rate Type (Dollars in thousands)
|
|
Balance
|
|
Percent of Total
|
|
Balance
|
|
Percent of Total
|
||||||
Variable rate
|
|
$
|
664,313
|
|
|
72.44
|
%
|
|
$
|
634,900
|
|
|
70.60
|
%
|
Fixed rate
|
|
252,790
|
|
|
27.56
|
%
|
|
264,420
|
|
|
29.40
|
%
|
||
Total gross loans
|
|
$
|
917,103
|
|
|
100.00
|
%
|
|
$
|
899,320
|
|
|
100.00
|
%
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||
Repricing (Dollars in thousands)
|
|
Balance
|
|
Percent of Total
|
|
Balance
|
|
Percent of Total
|
||||||
< 1 Year
|
|
$
|
334,910
|
|
|
36.52
|
%
|
|
$
|
318,985
|
|
|
35.46
|
%
|
1-3 Years
|
|
199,004
|
|
|
21.70
|
%
|
|
177,545
|
|
|
19.74
|
%
|
||
3-5 Years
|
|
261,299
|
|
|
28.49
|
%
|
|
200,471
|
|
|
22.29
|
%
|
||
> 5 Years
|
|
121,890
|
|
|
13.29
|
%
|
|
202,319
|
|
|
22.50
|
%
|
||
Total gross loans
|
|
$
|
917,103
|
|
|
100.00
|
%
|
|
$
|
899,320
|
|
|
99.99
|
%
|
ITEM 8 -
|
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
|
|
/s/ Crowe LLP
|
|
|
|
|
We have served as the Company’s auditor since 2011.
|
|
|
|
Sacramento, California
|
|
March 8, 2019
|
|
(In thousands, except share amounts)
|
|
2018
|
|
2017
|
||||
ASSETS
|
|
|
|
|
|
|
||
Cash and due from banks
|
|
$
|
24,954
|
|
|
$
|
38,286
|
|
Interest-earning deposits in other banks
|
|
6,725
|
|
|
62,080
|
|
||
Federal funds sold
|
|
48
|
|
|
17
|
|
||
Total cash and cash equivalents
|
|
31,727
|
|
|
100,383
|
|
||
Available-for-sale debt securities
|
|
463,905
|
|
|
535,281
|
|
||
Equity securities
|
|
7,254
|
|
|
7,423
|
|
||
Loans, less allowance for credit losses of $9,104 at December 31, 2018 and $8,778 at December 31, 2017
|
|
909,591
|
|
|
891,901
|
|
||
Bank premises and equipment, net
|
|
8,484
|
|
|
9,398
|
|
||
Bank owned life insurance
|
|
28,502
|
|
|
27,807
|
|
||
Federal Home Loan Bank stock
|
|
6,843
|
|
|
6,843
|
|
||
Goodwill
|
|
53,777
|
|
|
53,777
|
|
||
Core deposit intangibles
|
|
2,572
|
|
|
3,027
|
|
||
Accrued interest receivable and other assets
|
|
25,181
|
|
|
25,815
|
|
||
Total assets
|
|
$
|
1,537,836
|
|
|
$
|
1,661,655
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
||
Deposits:
|
|
|
|
|
|
|
||
Non-interest bearing
|
|
$
|
550,657
|
|
|
$
|
585,039
|
|
Interest bearing
|
|
731,641
|
|
|
840,648
|
|
||
Total deposits
|
|
1,282,298
|
|
|
1,425,687
|
|
||
Short-term borrowings
|
|
10,000
|
|
|
—
|
|
||
Junior subordinated deferrable interest debentures
|
|
5,155
|
|
|
5,155
|
|
||
Accrued interest payable and other liabilities
|
|
20,645
|
|
|
21,254
|
|
||
Total liabilities
|
|
1,318,098
|
|
|
1,452,096
|
|
||
Commitments and contingencies (Note 12)
|
|
|
|
|
|
|
||
Shareholders’ equity
:
|
|
|
|
|
|
|
||
Preferred stock, no par value; 10,000,000 shares authorized, none issued and outstanding
|
|
—
|
|
|
—
|
|
||
Common stock, no par value; 80,000,000 shares authorized; issued and outstanding: 13,754,965 at December 31, 2018 and 13,696,722 at December 31, 2017
|
|
103,851
|
|
|
103,314
|
|
||
Retained earnings
|
|
120,294
|
|
|
103,419
|
|
||
Accumulated other comprehensive (loss) income, net of tax
|
|
(4,407
|
)
|
|
2,826
|
|
||
Total shareholders’ equity
|
|
219,738
|
|
|
209,559
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
1,537,836
|
|
|
$
|
1,661,655
|
|
(In thousands, except per share amounts)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
|||
Interest and fees on loans
|
|
$
|
49,936
|
|
|
$
|
43,534
|
|
|
$
|
34,051
|
|
Interest on deposits in other banks
|
|
459
|
|
|
424
|
|
|
289
|
|
|||
Interest and dividends on investment securities:
|
|
|
|
|
|
|
||||||
Taxable
|
|
10,254
|
|
|
6,526
|
|
|
5,876
|
|
|||
Exempt from Federal income taxes
|
|
3,538
|
|
|
6,892
|
|
|
6,460
|
|
|||
Total interest income
|
|
64,187
|
|
|
57,376
|
|
|
46,676
|
|
|||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|||
Interest on deposits
|
|
1,153
|
|
|
969
|
|
|
975
|
|
|||
Interest on junior subordinated deferrable interest debentures
|
|
199
|
|
|
147
|
|
|
121
|
|
|||
Other
|
|
132
|
|
|
21
|
|
|
—
|
|
|||
Total interest expense
|
|
1,484
|
|
|
1,137
|
|
|
1,096
|
|
|||
Net interest income before provision for credit losses
|
|
62,703
|
|
|
56,239
|
|
|
45,580
|
|
|||
(Reversal of) Provision for credit losses
|
|
50
|
|
|
(1,150
|
)
|
|
(5,850
|
)
|
|||
Net interest income after provision for credit losses
|
|
62,653
|
|
|
57,389
|
|
|
51,430
|
|
|||
Non-interest income:
|
|
|
|
|
|
|
|
|
|
|||
Service charges
|
|
2,986
|
|
|
3,053
|
|
|
2,849
|
|
|||
Appreciation in cash surrender value of bank owned life insurance
|
|
695
|
|
|
621
|
|
|
558
|
|
|||
Interchange fees
|
|
1,462
|
|
|
1,458
|
|
|
1,228
|
|
|||
Loan placement fees
|
|
708
|
|
|
706
|
|
|
1,083
|
|
|||
Net realized gain on sale of credit card portfolio
|
|
462
|
|
|
—
|
|
|
—
|
|
|||
Net realized gains on sales and calls of investment securities
|
|
1,314
|
|
|
2,802
|
|
|
1,920
|
|
|||
Other-than-temporary impairment loss on investment securities
|
|
—
|
|
|
—
|
|
|
(136
|
)
|
|||
Federal Home Loan Bank dividends
|
|
590
|
|
|
443
|
|
|
630
|
|
|||
Other income
|
|
2,107
|
|
|
1,753
|
|
|
1,459
|
|
|||
Total non-interest income
|
|
10,324
|
|
|
10,836
|
|
|
9,591
|
|
|||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|||
Salaries and employee benefits
|
|
26,221
|
|
|
24,738
|
|
|
21,881
|
|
|||
Occupancy and equipment
|
|
5,972
|
|
|
5,186
|
|
|
4,754
|
|
|||
Regulatory assessments
|
|
619
|
|
|
652
|
|
|
642
|
|
|||
Data processing expense
|
|
1,666
|
|
|
1,740
|
|
|
1,707
|
|
|||
Professional services
|
|
1,475
|
|
|
1,509
|
|
|
1,258
|
|
|||
ATM/Debit card expenses
|
|
739
|
|
|
750
|
|
|
633
|
|
|||
Information technology
|
|
1,113
|
|
|
818
|
|
|
531
|
|
|||
Directors’ expenses
|
|
465
|
|
|
597
|
|
|
530
|
|
|||
Advertising
|
|
758
|
|
|
638
|
|
|
576
|
|
|||
Internet banking expenses
|
|
732
|
|
|
705
|
|
|
678
|
|
|||
Acquisition and integration expenses
|
|
217
|
|
|
1,828
|
|
|
1,782
|
|
|||
Amortization of core deposit intangibles
|
|
455
|
|
|
234
|
|
|
149
|
|
|||
Other expense
|
|
4,636
|
|
|
5,011
|
|
|
3,801
|
|
|||
Total non-interest expenses
|
|
45,068
|
|
|
44,406
|
|
|
38,922
|
|
|||
Income before provision for income taxes
|
|
27,909
|
|
|
23,819
|
|
|
22,099
|
|
|||
Provision for income taxes
|
|
6,620
|
|
|
9,793
|
|
|
6,917
|
|
|||
Net income
|
|
$
|
21,289
|
|
|
$
|
14,026
|
|
|
$
|
15,182
|
|
|
|
|
|
|
|
|
||||||
Basic earnings per common share
|
|
$
|
1.55
|
|
|
$
|
1.12
|
|
|
$
|
1.34
|
|
Diluted earnings per common share
|
|
$
|
1.54
|
|
|
$
|
1.10
|
|
|
$
|
1.33
|
|
Cash dividends per common share
|
|
$
|
0.31
|
|
|
$
|
0.24
|
|
|
$
|
0.24
|
|
(In thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net income
|
|
$
|
21,289
|
|
|
$
|
14,026
|
|
|
$
|
15,182
|
|
Other Comprehensive Income (Loss):
|
|
|
|
|
|
|
||||||
Unrealized gains (losses) on securities:
|
|
|
|
|
|
|
||||||
Unrealized holdings (losses) gains arising during the period
|
|
(9,159
|
)
|
|
7,705
|
|
|
(9,924
|
)
|
|||
Less: reclassification for net gains included in net income
|
|
1,314
|
|
|
2,802
|
|
|
1,224
|
|
|||
Less: reclassification for other-than-temporary impairment loss included in net income
|
|
—
|
|
|
—
|
|
|
(136
|
)
|
|||
Transfer of investment securities from held-to-maturity to available-for-sale
|
|
—
|
|
|
—
|
|
|
2,647
|
|
|||
Amortization of net unrealized gains transferred
|
|
—
|
|
|
—
|
|
|
(64
|
)
|
|||
Other comprehensive (loss) income, before tax
|
|
(10,473
|
)
|
|
4,903
|
|
|
(8,429
|
)
|
|||
Tax benefit (expense) related to items of other comprehensive income
|
|
3,096
|
|
|
(2,062
|
)
|
|
3,451
|
|
|||
Total other comprehensive (loss) income
|
|
(7,377
|
)
|
|
2,841
|
|
|
(4,978
|
)
|
|||
Comprehensive income
|
|
$
|
13,912
|
|
|
$
|
16,867
|
|
|
$
|
10,204
|
|
|
|
Common Stock
|
|
|
|
Accumulated
Other
Comprehensive Income (Loss)
(Net of Taxes)
|
|
Total Shareholders’ Equity
|
|||||||||||
|
|
|
|
|
|
Retained Earnings
|
|
|
|||||||||||
(In thousands, except share amounts)
|
|
Shares
|
|
Amount
|
|
|
|
||||||||||||
Balance, January 1, 2016
|
|
10,996,773
|
|
|
$
|
54,424
|
|
|
$
|
80,437
|
|
|
$
|
4,462
|
|
|
$
|
139,323
|
|
Net income
|
|
—
|
|
|
—
|
|
|
15,182
|
|
|
—
|
|
|
15,182
|
|
||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,978
|
)
|
|
(4,978
|
)
|
||||
Restricted stock granted, forfeited and related tax benefit
|
|
52,911
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
||||
Cash dividend ($0.24 per common share)
|
|
—
|
|
|
—
|
|
|
(2,715
|
)
|
|
—
|
|
|
(2,715
|
)
|
||||
Stock issued for acquisition
|
|
1,058,851
|
|
|
16,678
|
|
|
—
|
|
|
—
|
|
|
16,678
|
|
||||
Stock-based compensation expense
|
|
—
|
|
|
284
|
|
|
—
|
|
|
—
|
|
|
284
|
|
||||
Stock options exercised and related tax benefit
|
|
35,280
|
|
|
261
|
|
|
—
|
|
|
—
|
|
|
261
|
|
||||
Balance, December 31, 2016
|
|
12,143,815
|
|
|
71,645
|
|
|
92,904
|
|
|
(516
|
)
|
|
164,033
|
|
||||
Net income
|
|
—
|
|
|
—
|
|
|
14,026
|
|
|
—
|
|
|
14,026
|
|
||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,841
|
|
|
2,841
|
|
||||
Reclassification associated with the adoption of ASU 2018-02
|
|
—
|
|
|
—
|
|
|
(501
|
)
|
|
501
|
|
|
—
|
|
||||
Stock issued under employee stock purchase plan
|
|
2,441
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
45
|
|
||||
Restricted stock granted, (forfeited) and related tax benefit
|
|
(2,360
|
)
|
|
—
|
|
|
|
|
|
|
—
|
|
||||||
Stock issued for acquisition
|
|
1,276,888
|
|
|
28,405
|
|
|
—
|
|
|
—
|
|
|
28,405
|
|
||||
Stock-based compensation expense
|
|
—
|
|
|
384
|
|
|
—
|
|
|
—
|
|
|
384
|
|
||||
Cash dividend ($0.24 per common share)
|
|
—
|
|
|
—
|
|
|
(3,010
|
)
|
|
—
|
|
|
(3,010
|
)
|
||||
Stock options exercised and related tax benefit
|
|
275,938
|
|
|
2,835
|
|
|
—
|
|
|
—
|
|
|
2,835
|
|
||||
Balance, December 31, 2017
|
|
13,696,722
|
|
|
103,314
|
|
|
103,419
|
|
|
2,826
|
|
|
209,559
|
|
||||
Cumulative effect of equity securities gains reclassified
|
|
—
|
|
|
—
|
|
|
(144
|
)
|
|
144
|
|
|
—
|
|
||||
Adjusted Balance, January 1, 2018
|
|
13,696,722
|
|
|
103,314
|
|
|
103,275
|
|
|
2,970
|
|
|
209,559
|
|
||||
Net income
|
|
—
|
|
|
—
|
|
|
21,289
|
|
|
—
|
|
|
21,289
|
|
||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,377
|
)
|
|
(7,377
|
)
|
||||
Restricted stock granted, (forfeited) and related tax benefit
|
|
20,494
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Stock issued under employee stock purchase plan
|
|
11,581
|
|
|
211
|
|
|
—
|
|
|
—
|
|
|
211
|
|
||||
Stock-based compensation expense
|
|
—
|
|
|
482
|
|
|
—
|
|
|
—
|
|
|
482
|
|
||||
Cash dividend ($0.31 per common share)
|
|
—
|
|
|
—
|
|
|
(4,270
|
)
|
|
—
|
|
|
(4,270
|
)
|
||||
Stock options exercised and related tax benefit
|
|
74,030
|
|
|
738
|
|
|
—
|
|
|
—
|
|
|
738
|
|
||||
Repurchase and retirement of common stock
|
|
(47,862
|
)
|
|
(894
|
)
|
|
—
|
|
|
—
|
|
|
(894
|
)
|
||||
Balance, December 31, 2018
|
|
13,754,965
|
|
|
$
|
103,851
|
|
|
$
|
120,294
|
|
|
$
|
(4,407
|
)
|
|
$
|
219,738
|
|
CENTRAL VALLEY COMMUNITY BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2018, 2017, and 2016
|
||||||||||||
(In thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|||
Net income
|
|
$
|
21,289
|
|
|
$
|
14,026
|
|
|
$
|
15,182
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|||||
Net decrease (increase) in deferred loan costs
|
|
233
|
|
|
(92
|
)
|
|
(851
|
)
|
|||
Depreciation
|
|
1,703
|
|
|
1,429
|
|
|
1,320
|
|
|||
Accretion
|
|
(898
|
)
|
|
(766
|
)
|
|
(1,142
|
)
|
|||
Amortization
|
|
6,457
|
|
|
8,519
|
|
|
7,912
|
|
|||
Stock-based compensation
|
|
482
|
|
|
384
|
|
|
284
|
|
|||
Excess tax benefit from exercise of stock options
|
|
—
|
|
|
—
|
|
|
(30
|
)
|
|||
Provision for (reversal of) credit losses
|
|
50
|
|
|
(1,150
|
)
|
|
(5,850
|
)
|
|||
Other than temporary impairment losses on investment securities
|
|
—
|
|
|
—
|
|
|
136
|
|
|||
Net realized gains on sales and calls of available-for-sale investment securities
|
|
(1,314
|
)
|
|
(2,802
|
)
|
|
(1,224
|
)
|
|||
Net realized gains on sales or calls of held-to-maturity investment securities
|
|
—
|
|
|
—
|
|
|
(696
|
)
|
|||
Net loss on sale and disposal of equipment
|
|
2
|
|
|
—
|
|
|
4
|
|
|||
Write down of equity investments
|
|
42
|
|
|
—
|
|
|
—
|
|
|||
Increase in bank owned life insurance, net of expenses
|
|
(695
|
)
|
|
(621
|
)
|
|
(558
|
)
|
|||
Net gain on sale of credit card portfolio
|
|
(462
|
)
|
|
—
|
|
|
—
|
|
|||
Net gain on bank owned life insurance
|
|
—
|
|
|
—
|
|
|
(190
|
)
|
|||
Net decrease (increase) in accrued interest receivable and other assets
|
|
3,218
|
|
|
(2,263
|
)
|
|
(4,711
|
)
|
|||
Net (decrease) increase in accrued interest payable and other liabilities
|
|
(599
|
)
|
|
1,370
|
|
|
821
|
|
|||
Benefit for deferred income taxes
|
|
403
|
|
|
7,184
|
|
|
2,592
|
|
|||
Net cash provided by operating activities
|
|
29,911
|
|
|
25,218
|
|
|
12,999
|
|
|||
Cash Flows From Investing Activities:
|
|
|
|
|
|
|
|
|
|
|||
Net cash and cash equivalents acquired in acquisitions
|
|
—
|
|
|
26,279
|
|
|
13,241
|
|
|||
Purchases of available-for-sale investment securities
|
|
(225,970
|
)
|
|
(226,740
|
)
|
|
(278,664
|
)
|
|||
Proceeds from sales or calls of available-for-sale investment securities
|
|
246,824
|
|
|
228,405
|
|
|
167,163
|
|
|||
Proceeds from sales or calls of held-to-maturity investment securities
|
|
—
|
|
|
—
|
|
|
9,257
|
|
|||
Proceeds from maturity and principal repayment of available-for-sale investment securities
|
|
36,495
|
|
|
44,956
|
|
|
50,531
|
|
|||
Proceeds from sale of credit card portfolio
|
|
2,954
|
|
|
—
|
|
|
—
|
|
|||
Net increase in loans
|
|
(20,477
|
)
|
|
(25,542
|
)
|
|
(29,930
|
)
|
|||
Purchases of premises and equipment
|
|
(791
|
)
|
|
(859
|
)
|
|
(861
|
)
|
|||
Proceeds from bank owned life insurance
|
|
—
|
|
|
—
|
|
|
928
|
|
|||
Proceeds from sale of premises and equipment
|
|
—
|
|
|
—
|
|
|
7
|
|
|||
Net cash provided by (used in) investing activities
|
|
39,035
|
|
|
46,499
|
|
|
(68,328
|
)
|
|||
Cash Flows From Financing Activities:
|
|
|
|
|
|
|
|
|
|
|||
Net (decrease) increase in demand, interest-bearing and savings deposits
|
|
(112,134
|
)
|
|
45,672
|
|
|
26,372
|
|
|||
Net decrease in time deposits
|
|
(31,253
|
)
|
|
(48,044
|
)
|
|
(25,038
|
)
|
|||
Proceeds from short-term borrowings from Federal Home Loan Bank
|
|
568,500
|
|
|
—
|
|
|
—
|
|
|||
Repayments of short-term borrowings to Federal Home Loan Bank
|
|
(558,500
|
)
|
|
(7,000
|
)
|
|
—
|
|
|||
Proceeds of borrowings from other financial institutions
|
|
19,705
|
|
|
—
|
|
|
400
|
|
|||
Repayments of borrowings from other financial institutions
|
|
(19,705
|
)
|
|
(400
|
)
|
|
—
|
|
|||
Purchase and retirement of common stock
|
|
(894
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from stock issued under employee stock purchase plan
|
|
211
|
|
|
45
|
|
|
—
|
|
|||
Proceeds from exercise of stock options
|
|
738
|
|
|
2,835
|
|
|
231
|
|
|||
Excess tax benefit from exercise of stock options
|
|
—
|
|
|
—
|
|
|
30
|
|
|||
Cash dividend payments on common stock
|
|
(4,270
|
)
|
|
(3,010
|
)
|
|
(2,715
|
)
|
|||
Net cash used in financing activities
|
|
(137,602
|
)
|
|
(9,902
|
)
|
|
(720
|
)
|
|||
(Decrease) increase in cash and cash equivalents
|
|
(68,656
|
)
|
|
61,815
|
|
|
(56,049
|
)
|
|||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
|
|
100,383
|
|
|
38,568
|
|
|
94,617
|
|
|||
CASH AND CASH EQUIVALENTS AT END OF YEAR
|
|
$
|
31,727
|
|
|
$
|
100,383
|
|
|
$
|
38,568
|
|
|
|
|
|
|
|
|
CENTRAL VALLEY COMMUNITY BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(continued)
For the Years Ended December 31, 2018, 2017, and 2016
|
||||||||||||
(In thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
|
|
|
|
||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
|
|
|
||||||
Cash paid during the year for:
|
|
|
|
|
|
|
||||||
Interest
|
|
$
|
1,460
|
|
|
$
|
1,171
|
|
|
$
|
1,053
|
|
Income taxes
|
|
$
|
2,700
|
|
|
$
|
4,720
|
|
|
$
|
5,840
|
|
Non-cash investing and financing activities:
|
|
|
|
|
|
|
||||||
Transfer of securities from held-to-maturity to available-for-sale
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23,131
|
|
Unrealized gain on transfer of securities from held-to-maturity to available-for-sale
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
526
|
|
Transfer of loans to other assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
363
|
|
Common stock issued in acquisitions
|
|
$
|
—
|
|
|
$
|
28,405
|
|
|
$
|
16,678
|
|
1.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
•
|
Available-for-sale securities, reported at fair value, with unrealized gains and losses excluded from earnings and reported, net of taxes, as accumulated other comprehensive income (loss) within shareholders’ equity.
|
•
|
Held-to-maturity securities, which management has the positive intent and ability to hold to maturity, reported at amortized cost, adjusted for the accretion of discounts and amortization of premiums.
|
Merger consideration:
|
|
||
Common stock issued
|
$
|
28,475
|
|
Fair Value of Total Consideration Transferred
|
$
|
28,475
|
|
|
|
||
Recognized amounts of identifiable assets acquired and liabilities assumed:
|
|
||
Cash and cash equivalents
|
$
|
26,279
|
|
Loans, net
|
117,815
|
|
|
Investments
|
41,280
|
|
|
Core deposit intangible
|
1,879
|
|
|
Premises and equipment
|
561
|
|
|
Federal Home Loan Bank stock
|
1,559
|
|
|
Deferred taxes and taxes receivable
|
2,186
|
|
|
Bank owned life insurance
|
3,997
|
|
|
Other assets
|
592
|
|
|
Total assets acquired
|
196,148
|
|
|
Deposits
|
171,948
|
|
|
Deposit premium
|
132
|
|
|
Short-term borrowings - Federal Home Loan Bank
|
7,000
|
|
|
Other liabilities
|
2,059
|
|
|
Total liabilities assumed
|
181,139
|
|
|
Total identifiable net assets
|
15,009
|
|
|
Goodwill
|
$
|
13,466
|
|
Merger consideration:
|
|
||
Cash
|
$
|
9,468
|
|
Common stock issued
|
16,793
|
|
|
Fair Value of Total Consideration Transferred
|
$
|
26,261
|
|
|
|
||
Recognized amounts of identifiable assets acquired and liabilities assumed:
|
|
||
Cash and cash equivalents
|
$
|
22,709
|
|
Loans, net
|
122,533
|
|
|
Core deposit intangible
|
508
|
|
|
Premises and equipment
|
586
|
|
|
Federal Home Loan Bank stock
|
771
|
|
|
Deferred taxes and taxes receivable
|
4,417
|
|
|
Bank owned life insurance
|
2,664
|
|
|
Other assets
|
966
|
|
|
Total assets acquired
|
155,154
|
|
|
Deposits
|
138,236
|
|
|
Deposit premium
|
142
|
|
|
Other liabilities
|
829
|
|
|
Total liabilities assumed
|
139,207
|
|
|
Total identifiable net assets
|
15,947
|
|
|
Goodwill
|
$
|
10,314
|
|
|
|
For the Years Ended December 31,
|
||||||
|
|
2017
|
|
2016
|
||||
Net interest income
|
|
$
|
61,059
|
|
|
$
|
56,531
|
|
Provision for (reversal of) credit losses
|
|
(1,150
|
)
|
|
(5,800
|
)
|
||
Non-interest income
|
|
11,240
|
|
|
10,205
|
|
||
Non-interest expense
|
|
51,415
|
|
|
52,131
|
|
||
Income before provision for income taxes
|
|
22,034
|
|
|
20,405
|
|
||
Provision for income taxes
|
|
9,168
|
|
|
6,381
|
|
||
Net income
|
|
$
|
12,866
|
|
|
$
|
14,024
|
|
Net income available to common shareholders
|
|
$
|
12,866
|
|
|
$
|
14,024
|
|
Basic earnings per common share
|
|
$
|
1.03
|
|
|
$
|
1.24
|
|
Diluted earnings per common share
|
|
$
|
1.01
|
|
|
$
|
1.23
|
|
3.
|
FAIR VALUE MEASUREMENTS
|
|
|
December 31, 2018
|
||||||||||||||||||
|
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||||||
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and due from banks
|
|
$
|
24,954
|
|
|
$
|
24,954
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
24,954
|
|
Interest-earning deposits in other banks
|
|
6,725
|
|
|
6,725
|
|
|
—
|
|
|
—
|
|
|
6,725
|
|
|||||
Federal funds sold
|
|
48
|
|
|
48
|
|
|
—
|
|
|
—
|
|
|
48
|
|
|||||
Available-for-sale investment securities
|
|
463,905
|
|
|
—
|
|
|
463,905
|
|
|
—
|
|
|
463,905
|
|
|||||
Equity securities
|
|
7,254
|
|
|
7,254
|
|
|
—
|
|
—
|
|
7,254
|
|
|||||||
Loans, net
|
|
909,591
|
|
|
—
|
|
|
—
|
|
|
899,214
|
|
|
899,214
|
|
|||||
Federal Home Loan Bank stock
|
|
6,843
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|||||
Accrued interest receivable
|
|
6,429
|
|
|
32
|
|
|
2,323
|
|
|
4,074
|
|
|
6,429
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits
|
|
1,282,298
|
|
|
1,031,369
|
|
|
95,633
|
|
|
—
|
|
|
1,127,002
|
|
|||||
Short-term borrowings
|
|
10,000
|
|
|
—
|
|
|
10,000
|
|
|
—
|
|
|
10,000
|
|
|||||
Junior subordinated deferrable interest debentures
|
|
5,155
|
|
|
—
|
|
|
—
|
|
|
4,114
|
|
|
4,114
|
|
|||||
Accrued interest payable
|
|
134
|
|
|
—
|
|
|
81
|
|
|
53
|
|
|
134
|
|
|
|
December 31, 2017
|
||||||||||||||||||
|
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||||||
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
|
$
|
38,286
|
|
|
$
|
38,286
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
38,286
|
|
Interest-earning deposits in other banks
|
|
62,080
|
|
|
62,080
|
|
|
—
|
|
|
—
|
|
|
62,080
|
|
|||||
Federal funds sold
|
|
17
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|||||
Available-for-sale investment securities
|
|
535,281
|
|
|
—
|
|
|
535,281
|
|
|
—
|
|
|
535,281
|
|
|||||
Equity securities
|
|
7,423
|
|
|
7,423
|
|
|
—
|
|
|
—
|
|
|
7,423
|
|
|||||
Loans, net
|
|
891,901
|
|
|
—
|
|
|
—
|
|
|
899,191
|
|
|
899,191
|
|
|||||
Federal Home Loan Bank stock
|
|
6,843
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|||||
Accrued interest receivable
|
|
7,168
|
|
|
57
|
|
|
3,256
|
|
|
3,855
|
|
|
7,168
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Deposits
|
|
1,425,687
|
|
|
1,296,048
|
|
|
127,966
|
|
|
—
|
|
|
1,424,014
|
|
|||||
Junior subordinated deferrable interest debentures
|
|
5,155
|
|
|
—
|
|
|
—
|
|
|
3,550
|
|
|
3,550
|
|
|||||
Accrued interest payable
|
|
110
|
|
|
—
|
|
|
72
|
|
|
38
|
|
|
110
|
|
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Available-for-sale investment securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Government agencies
|
|
$
|
21,321
|
|
|
$
|
—
|
|
|
$
|
21,321
|
|
|
$
|
—
|
|
Obligations of states and political subdivisions
|
|
81,504
|
|
|
—
|
|
|
81,504
|
|
|
—
|
|
||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
|
|
234,930
|
|
|
—
|
|
|
234,930
|
|
|
—
|
|
||||
Private label mortgage and asset backed securities
|
|
126,150
|
|
|
—
|
|
|
126,150
|
|
|
—
|
|
||||
Equity Securities
|
|
7,254
|
|
|
7,254
|
|
|
—
|
|
—
|
||||||
Total assets measured at fair value on a recurring basis
|
|
$
|
471,159
|
|
|
$
|
7,254
|
|
|
$
|
463,905
|
|
|
$
|
—
|
|
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Impaired loans:
|
|
|
|
|
|
|
|
|
||||||||
Real estate:
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
|
$
|
134
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
134
|
|
Total assets measured at fair value on a non-recurring basis
|
|
$
|
134
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
134
|
|
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Government agencies
|
|
$
|
66,587
|
|
|
$
|
—
|
|
|
$
|
66,587
|
|
|
$
|
—
|
|
Obligations of states and political subdivisions
|
|
143,105
|
|
|
—
|
|
|
143,105
|
|
|
—
|
|
||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
|
|
234,908
|
|
|
—
|
|
|
234,908
|
|
|
—
|
|
||||
Private label residential mortgage and asset backed securities
|
|
90,681
|
|
|
—
|
|
|
90,681
|
|
|
—
|
|
||||
Other equity securities
|
|
7,423
|
|
|
7,423
|
|
|
—
|
|
|
—
|
|
||||
Total assets measured at fair value on a recurring basis
|
|
$
|
542,704
|
|
|
$
|
7,423
|
|
|
$
|
535,281
|
|
|
$
|
—
|
|
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Other repossessed assets
|
|
$
|
70
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
70
|
|
Total assets measured at fair value on a non-recurring basis
|
|
$
|
70
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
70
|
|
4.
|
INVESTMENT SECURITIES
|
|
December 31, 2018
|
||||||||||||||
|
Amortized
Cost
|
|
Gross Unrealized
Gains
|
|
Gross Unrealized
Losses
|
|
Estimated
Fair Value
|
||||||||
Available-for-Sale Securities
|
|
|
|
|
|
|
|
||||||||
Debt Securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Government agencies
|
$
|
21,723
|
|
|
$
|
—
|
|
|
$
|
(402
|
)
|
|
$
|
21,321
|
|
Obligations of states and political subdivisions
|
79,886
|
|
|
2,205
|
|
|
(587
|
)
|
|
81,504
|
|
||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
|
239,388
|
|
|
253
|
|
|
(4,711
|
)
|
|
234,930
|
|
||||
Private label mortgage and asset backed securities
|
129,165
|
|
|
756
|
|
|
(3,771
|
)
|
|
126,150
|
|
||||
|
$
|
470,162
|
|
|
$
|
3,214
|
|
|
$
|
(9,471
|
)
|
|
$
|
463,905
|
|
|
December 31, 2017
|
||||||||||||||
|
Amortized
Cost
|
|
Gross Unrealized
Gains
|
|
Gross Unrealized
Losses
|
|
Estimated
Fair Value
|
||||||||
Available-for-Sale Securities
|
|
|
|
|
|
|
|
||||||||
Debt Securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Government agencies
|
$
|
65,994
|
|
|
$
|
667
|
|
|
$
|
(74
|
)
|
|
$
|
66,587
|
|
Obligations of states and political subdivisions
|
136,955
|
|
|
6,240
|
|
|
(90
|
)
|
|
143,105
|
|
||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
|
237,210
|
|
|
601
|
|
|
(2,903
|
)
|
|
234,908
|
|
||||
Private label mortgage and asset backed securities
|
91,033
|
|
|
924
|
|
|
(1,276
|
)
|
|
90,681
|
|
||||
`
|
$
|
531,192
|
|
|
$
|
8,432
|
|
|
$
|
(4,343
|
)
|
|
$
|
535,281
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Available-for-Sale Securities
|
|
|
|
|
|
|
|
|
|
|||
Proceeds from sales or calls
|
|
$
|
246,824
|
|
|
$
|
228,405
|
|
|
$
|
167,163
|
|
Gross realized gains from sales or calls
|
|
$
|
1,976
|
|
|
$
|
4,701
|
|
|
$
|
2,223
|
|
Gross realized losses from sales or calls
|
|
$
|
(662
|
)
|
|
$
|
(1,899
|
)
|
|
$
|
(999
|
)
|
Held-to-Maturity Securities
|
|
|
|
|
|
|
||||||
Proceeds from sales and calls
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,257
|
|
Gross realized gains from sales or calls
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
696
|
|
|
December 31, 2018
|
||||||||||||||||||||||
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
Available-for-Sale Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Debt Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Government agencies
|
$
|
14,891
|
|
|
$
|
(254
|
)
|
|
$
|
6,430
|
|
|
$
|
(148
|
)
|
|
$
|
21,321
|
|
|
$
|
(402
|
)
|
Obligations of states and political subdivisions
|
10,056
|
|
|
(99
|
)
|
|
22,945
|
|
|
(488
|
)
|
|
33,001
|
|
|
(587
|
)
|
||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
|
61,866
|
|
|
(424
|
)
|
|
124,673
|
|
|
(4,287
|
)
|
|
186,539
|
|
|
(4,711
|
)
|
||||||
Private label residential mortgage and asset backed securities
|
31,325
|
|
|
(195
|
)
|
|
84,784
|
|
|
(3,576
|
)
|
|
116,109
|
|
|
(3,771
|
)
|
||||||
|
$
|
118,138
|
|
|
$
|
(972
|
)
|
|
$
|
238,832
|
|
|
$
|
(8,499
|
)
|
|
$
|
356,970
|
|
|
$
|
(9,471
|
)
|
|
December 31, 2017
|
||||||||||||||||||||||
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
Available-for-Sale Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Debt Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Government agencies
|
$
|
8,201
|
|
|
$
|
(47
|
)
|
|
$
|
6,741
|
|
|
$
|
(27
|
)
|
|
$
|
14,942
|
|
|
$
|
(74
|
)
|
Obligations of states and political subdivisions
|
1,627
|
|
|
(3
|
)
|
|
3,357
|
|
|
(87
|
)
|
|
4,984
|
|
|
(90
|
)
|
||||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
|
82,604
|
|
|
(822
|
)
|
|
64,488
|
|
|
(2,081
|
)
|
|
147,092
|
|
|
(2,903
|
)
|
||||||
Private label residential mortgage backed securities
|
88,312
|
|
|
(1,276
|
)
|
|
—
|
|
|
—
|
|
|
88,312
|
|
|
(1,276
|
)
|
||||||
|
$
|
180,744
|
|
|
$
|
(2,148
|
)
|
|
$
|
74,586
|
|
|
$
|
(2,195
|
)
|
|
$
|
255,330
|
|
|
$
|
(4,343
|
)
|
|
|
Years ended December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Beginning balance of credit losses recognized
|
|
$
|
874
|
|
|
$
|
874
|
|
Amounts related to credit loss for which an OTTI charge was not previously recognized
|
|
—
|
|
|
—
|
|
||
Realized losses for securities sold
|
|
—
|
|
|
—
|
|
||
Ending balance of credit losses recognized
|
|
$
|
874
|
|
|
$
|
874
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||
|
|
Amortized
Cost
|
|
Estimated
Fair Value
|
|
Amortized
Cost
|
|
Estimated
Fair Value
|
||||||||
Within one year
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,893
|
|
|
$
|
1,914
|
|
After one year through five years
|
|
2,769
|
|
|
2,899
|
|
|
7,149
|
|
|
7,316
|
|
||||
After five years through ten years
|
|
21,831
|
|
|
22,278
|
|
|
22,043
|
|
|
22,696
|
|
||||
After ten years
|
|
55,286
|
|
|
56,327
|
|
|
105,870
|
|
|
111,179
|
|
||||
|
|
79,886
|
|
|
81,504
|
|
|
136,955
|
|
|
143,105
|
|
||||
Investment securities not due at a single maturity date:
|
|
|
|
|
|
|
|
|
|
|
||||||
Treasuries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
U.S. Government agencies
|
|
21,723
|
|
|
21,321
|
|
|
65,994
|
|
|
66,587
|
|
||||
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
|
|
239,388
|
|
|
234,930
|
|
|
237,210
|
|
|
234,908
|
|
||||
Private label mortgage and asset backed securities
|
|
129,165
|
|
|
126,150
|
|
|
91,033
|
|
|
90,681
|
|
||||
|
|
$
|
470,162
|
|
|
$
|
463,905
|
|
|
$
|
531,192
|
|
|
$
|
535,281
|
|
Loan Type
|
|
December 31,
2018 |
|
% of Total
loans |
|
December 31,
2017 |
|
% of Total
loans |
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Commercial and industrial
|
|
$
|
101,533
|
|
|
11.1
|
%
|
|
$
|
100,856
|
|
|
11.2
|
%
|
Agricultural production
|
|
7,998
|
|
|
0.9
|
%
|
|
14,956
|
|
|
1.7
|
%
|
||
Total commercial
|
|
109,531
|
|
|
12.0
|
%
|
|
115,812
|
|
|
12.9
|
%
|
||
Real estate:
|
|
|
|
|
|
|
|
|
||||||
Owner occupied
|
|
183,169
|
|
|
19.9
|
%
|
|
204,452
|
|
|
22.7
|
%
|
||
Real estate construction and other land loans
|
|
101,606
|
|
|
11.1
|
%
|
|
96,460
|
|
|
10.7
|
%
|
||
Commercial real estate
|
|
305,118
|
|
|
33.2
|
%
|
|
269,254
|
|
|
29.9
|
%
|
||
Agricultural real estate
|
|
76,884
|
|
|
8.4
|
%
|
|
76,081
|
|
|
8.4
|
%
|
||
Other real estate
|
|
32,799
|
|
|
3.6
|
%
|
|
31,220
|
|
|
3.5
|
%
|
||
|
|
699,576
|
|
|
76.2
|
%
|
|
677,467
|
|
|
75.2
|
%
|
||
Consumer:
|
|
|
|
|
|
|
|
|
||||||
Equity loans and lines of credit
|
|
69,958
|
|
|
7.6
|
%
|
|
76,404
|
|
|
8.5
|
%
|
||
Consumer and installment
|
|
38,038
|
|
|
4.2
|
%
|
|
29,637
|
|
|
3.4
|
%
|
||
Total consumer
|
|
107,996
|
|
|
11.8
|
%
|
|
106,041
|
|
|
11.9
|
%
|
||
Net deferred origination costs
|
|
1,592
|
|
|
|
|
1,359
|
|
|
|
||||
Total gross loans
|
|
918,695
|
|
|
100.0
|
%
|
|
900,679
|
|
|
100.0
|
%
|
||
Allowance for credit losses
|
|
(9,104
|
)
|
|
|
|
|
(8,778
|
)
|
|
|
|
||
Total loans
|
|
$
|
909,591
|
|
|
|
|
|
$
|
891,901
|
|
|
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Balance, beginning of year
|
|
$
|
8,778
|
|
|
$
|
9,326
|
|
|
$
|
9,610
|
|
Provision (reversal) charged to operations
|
|
50
|
|
|
(1,150
|
)
|
|
(5,850
|
)
|
|||
Losses charged to allowance
|
|
(210
|
)
|
|
(464
|
)
|
|
(883
|
)
|
|||
Recoveries
|
|
486
|
|
|
1,066
|
|
|
6,449
|
|
|||
Balance, end of year
|
|
$
|
9,104
|
|
|
$
|
8,778
|
|
|
$
|
9,326
|
|
|
|
Commercial
|
|
Real Estate
|
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||
Allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance, January 1, 2018
|
|
$
|
2,071
|
|
|
$
|
5,795
|
|
|
$
|
825
|
|
|
$
|
87
|
|
|
$
|
8,778
|
|
(Reversal) provision charged to operations
|
|
(513
|
)
|
|
642
|
|
|
(60
|
)
|
|
(19
|
)
|
|
50
|
|
|||||
Losses charged to allowance
|
|
(94
|
)
|
|
—
|
|
|
(116
|
)
|
|
—
|
|
|
(210
|
)
|
|||||
Recoveries
|
|
207
|
|
|
102
|
|
|
177
|
|
|
—
|
|
|
486
|
|
|||||
Ending balance, December 31, 2018
|
|
$
|
1,671
|
|
|
$
|
6,539
|
|
|
$
|
826
|
|
|
$
|
68
|
|
|
$
|
9,104
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance, January 1, 2017
|
|
$
|
2,180
|
|
|
$
|
6,200
|
|
|
$
|
852
|
|
|
$
|
94
|
|
|
$
|
9,326
|
|
(Reversal) provision charged to operations
|
|
(762
|
)
|
|
(449
|
)
|
|
68
|
|
|
(7
|
)
|
|
(1,150
|
)
|
|||||
Losses charged to allowance
|
|
(207
|
)
|
|
(22
|
)
|
|
(235
|
)
|
|
—
|
|
|
(464
|
)
|
|||||
Recoveries
|
|
860
|
|
|
66
|
|
|
140
|
|
|
—
|
|
|
1,066
|
|
|||||
Ending balance, December 31, 2017
|
|
$
|
2,071
|
|
|
$
|
5,795
|
|
|
$
|
825
|
|
|
$
|
87
|
|
|
$
|
8,778
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance, January 1, 2016
|
|
$
|
3,562
|
|
|
$
|
5,204
|
|
|
$
|
734
|
|
|
$
|
110
|
|
|
$
|
9,610
|
|
(Reversal) provision charged to operations
|
|
(6,048
|
)
|
|
11
|
|
|
203
|
|
|
(16
|
)
|
|
(5,850
|
)
|
|||||
Losses charged to allowance
|
|
(621
|
)
|
|
—
|
|
|
(262
|
)
|
|
—
|
|
|
(883
|
)
|
|||||
Recoveries
|
|
5,287
|
|
|
985
|
|
|
177
|
|
|
—
|
|
|
6,449
|
|
|||||
Ending balance, December 31, 2016
|
|
$
|
2,180
|
|
|
$
|
6,200
|
|
|
$
|
852
|
|
|
$
|
94
|
|
|
$
|
9,326
|
|
|
|
Commercial
|
|
Real Estate
|
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||
Allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Ending balance, December 31, 2018
|
|
$
|
1,671
|
|
|
$
|
6,539
|
|
|
$
|
826
|
|
|
$
|
68
|
|
|
$
|
9,104
|
|
Ending balance: individually evaluated for impairment
|
|
$
|
9
|
|
|
$
|
27
|
|
|
$
|
54
|
|
|
$
|
—
|
|
|
$
|
90
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
1,662
|
|
|
$
|
6,512
|
|
|
$
|
772
|
|
|
$
|
68
|
|
|
$
|
9,014
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending balance, December 31, 2017
|
|
$
|
2,071
|
|
|
$
|
5,795
|
|
|
$
|
825
|
|
|
$
|
87
|
|
|
$
|
8,778
|
|
Ending balance: individually evaluated for impairment
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
34
|
|
|
$
|
—
|
|
|
$
|
36
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
2,070
|
|
|
$
|
5,794
|
|
|
$
|
791
|
|
|
$
|
87
|
|
|
$
|
8,742
|
|
|
|
Commercial
|
|
Real Estate
|
|
Consumer
|
|
Total
|
||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Ending balance, December 31, 2018
|
|
$
|
109,531
|
|
|
$
|
699,576
|
|
|
$
|
107,996
|
|
|
$
|
917,103
|
|
Ending balance: individually evaluated for impairment
|
|
$
|
348
|
|
|
$
|
4,215
|
|
|
$
|
1,346
|
|
|
$
|
5,909
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
109,183
|
|
|
$
|
695,361
|
|
|
$
|
106,650
|
|
|
$
|
911,194
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Ending balance, December 31, 2017
|
|
$
|
115,812
|
|
|
$
|
677,467
|
|
|
$
|
106,041
|
|
|
$
|
899,320
|
|
Ending balance: individually evaluated for impairment
|
|
$
|
377
|
|
|
$
|
4,846
|
|
|
$
|
1,143
|
|
|
$
|
6,366
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
115,435
|
|
|
$
|
672,621
|
|
|
$
|
104,898
|
|
|
$
|
892,954
|
|
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
$
|
86,876
|
|
|
$
|
12,072
|
|
|
$
|
2,585
|
|
|
$
|
—
|
|
|
$
|
101,533
|
|
Agricultural production
|
|
5,955
|
|
|
2,043
|
|
|
—
|
|
|
—
|
|
|
7,998
|
|
|||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Owner occupied
|
|
179,214
|
|
|
3,056
|
|
|
899
|
|
|
—
|
|
|
183,169
|
|
|||||
Real estate construction and other land loans
|
|
95,301
|
|
|
3,270
|
|
|
3,035
|
|
|
—
|
|
|
101,606
|
|
|||||
Commercial real estate
|
|
298,714
|
|
|
5,268
|
|
|
1,136
|
|
|
—
|
|
|
305,118
|
|
|||||
Agricultural real estate
|
|
57,544
|
|
|
165
|
|
|
19,175
|
|
|
—
|
|
|
76,884
|
|
|||||
Other real estate
|
|
32,799
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32,799
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity loans and lines of credit
|
|
68,016
|
|
|
380
|
|
|
1,562
|
|
|
—
|
|
|
69,958
|
|
|||||
Consumer and installment
|
|
38,036
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
38,038
|
|
|||||
Total
|
|
$
|
862,455
|
|
|
$
|
26,254
|
|
|
$
|
28,394
|
|
|
$
|
—
|
|
|
$
|
917,103
|
|
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
$
|
84,745
|
|
|
$
|
8,217
|
|
|
$
|
7,894
|
|
|
$
|
—
|
|
|
$
|
100,856
|
|
Agricultural production
|
|
10,848
|
|
|
206
|
|
|
3,902
|
|
|
—
|
|
|
14,956
|
|
|||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Owner occupied
|
|
196,838
|
|
|
4,795
|
|
|
2,819
|
|
|
—
|
|
|
204,452
|
|
|||||
Real estate construction and other land loans
|
|
90,927
|
|
|
1,625
|
|
|
3,908
|
|
|
—
|
|
|
96,460
|
|
|||||
Commercial real estate
|
|
261,746
|
|
|
4,147
|
|
|
3,361
|
|
|
—
|
|
|
269,254
|
|
|||||
Agricultural real estate
|
|
48,274
|
|
|
1,270
|
|
|
26,537
|
|
|
—
|
|
|
76,081
|
|
|||||
Other real estate
|
|
29,867
|
|
|
1,165
|
|
|
188
|
|
|
—
|
|
|
31,220
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity loans and lines of credit
|
|
74,535
|
|
|
483
|
|
|
1,386
|
|
|
—
|
|
|
76,404
|
|
|||||
Consumer and installment
|
|
29,634
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
29,637
|
|
|||||
Total
|
|
$
|
827,414
|
|
|
$
|
21,908
|
|
|
$
|
49,998
|
|
|
$
|
—
|
|
|
$
|
899,320
|
|
|
|
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
|
|
$
|
255
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
255
|
|
|
$
|
101,278
|
|
|
$
|
101,533
|
|
|
$
|
—
|
|
|
$
|
298
|
|
Agricultural production
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,998
|
|
|
7,998
|
|
|
—
|
|
|
—
|
|
||||||||
Real estate:
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|||||||||
Owner occupied
|
|
215
|
|
|
—
|
|
|
—
|
|
|
215
|
|
|
182,954
|
|
|
183,169
|
|
|
—
|
|
|
215
|
|
||||||||
Real estate construction and other land loans
|
|
—
|
|
|
—
|
|
|
1,439
|
|
|
1,439
|
|
|
100,167
|
|
|
101,606
|
|
|
—
|
|
|
1,439
|
|
||||||||
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
305,118
|
|
|
305,118
|
|
|
—
|
|
|
418
|
|
||||||||
Agricultural real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
76,884
|
|
|
76,884
|
|
|
—
|
|
|
—
|
|
||||||||
Other real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32,799
|
|
|
32,799
|
|
|
—
|
|
|
—
|
|
||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
||||||||||
Equity loans and lines of credit
|
|
953
|
|
|
—
|
|
|
—
|
|
|
953
|
|
|
69,005
|
|
|
69,958
|
|
|
—
|
|
|
370
|
|
||||||||
Consumer and installment
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
38,031
|
|
|
38,038
|
|
|
—
|
|
|
—
|
|
||||||||
Total
|
|
$
|
1,430
|
|
|
$
|
—
|
|
|
$
|
1,439
|
|
|
$
|
2,869
|
|
|
$
|
914,234
|
|
|
$
|
917,103
|
|
|
$
|
—
|
|
|
$
|
2,740
|
|
|
|
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
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
100,856
|
|
|
$
|
100,856
|
|
|
$
|
—
|
|
|
$
|
356
|
|
Agricultural production
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,956
|
|
|
14,956
|
|
|
—
|
|
|
—
|
|
||||||||
Real estate:
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
||||||||||
Owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
204,452
|
|
|
204,452
|
|
|
—
|
|
|
—
|
|
||||||||
Real estate construction and other land loans
|
|
—
|
|
|
—
|
|
|
1,397
|
|
|
1,397
|
|
|
95,063
|
|
|
96,460
|
|
|
—
|
|
|
1,397
|
|
||||||||
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
269,254
|
|
|
269,254
|
|
|
—
|
|
|
976
|
|
||||||||
Agricultural real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
76,081
|
|
|
76,081
|
|
|
—
|
|
|
—
|
|
||||||||
Other real estate
|
|
—
|
|
|
1,165
|
|
|
—
|
|
|
1,165
|
|
|
30,055
|
|
|
31,220
|
|
|
—
|
|
|
—
|
|
||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
||||||||||
Equity loans and lines of credit
|
|
149
|
|
|
—
|
|
|
—
|
|
|
149
|
|
|
76,255
|
|
|
76,404
|
|
|
—
|
|
|
146
|
|
||||||||
Consumer and installment
|
|
26
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|
29,611
|
|
|
29,637
|
|
|
—
|
|
|
—
|
|
||||||||
Total
|
|
$
|
175
|
|
|
$
|
1,165
|
|
|
$
|
1,397
|
|
|
$
|
2,737
|
|
|
$
|
896,583
|
|
|
$
|
899,320
|
|
|
$
|
—
|
|
|
$
|
2,875
|
|
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and industrial
|
|
$
|
259
|
|
|
$
|
493
|
|
|
$
|
—
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|||
Owner occupied
|
|
215
|
|
|
215
|
|
|
—
|
|
|||
Real estate construction and other land loans
|
|
2,613
|
|
|
2,676
|
|
|
—
|
|
|||
Commercial real estate
|
|
1,182
|
|
|
1,414
|
|
|
—
|
|
|||
Total real estate
|
|
4,010
|
|
|
4,305
|
|
|
—
|
|
|||
Consumer:
|
|
|
|
|
|
|
|
|
|
|||
Equity loans and lines of credit
|
|
248
|
|
|
285
|
|
|
—
|
|
|||
Total with no related allowance recorded
|
|
4,517
|
|
|
5,083
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and industrial
|
|
89
|
|
|
90
|
|
|
9
|
|
|||
Real estate:
|
|
|
|
|
|
|
|
|
|
|||
Commercial real estate
|
|
161
|
|
|
162
|
|
|
27
|
|
|||
Agricultural real estate
|
|
44
|
|
|
44
|
|
|
—
|
|
|||
Total real estate
|
|
205
|
|
|
206
|
|
|
27
|
|
|||
Consumer:
|
|
|
|
|
|
|
|
|
|
|||
Equity loans and lines of credit
|
|
1,098
|
|
|
1,103
|
|
|
54
|
|
|||
Total with an allowance recorded
|
|
1,392
|
|
|
1,399
|
|
|
90
|
|
|||
Total
|
|
$
|
5,909
|
|
|
$
|
6,482
|
|
|
$
|
90
|
|
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and industrial
|
|
$
|
355
|
|
|
$
|
553
|
|
|
$
|
—
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|||
Real estate construction and other land loans
|
|
3,023
|
|
|
3,085
|
|
|
—
|
|
|||
Commercial real estate
|
|
1,772
|
|
|
2,040
|
|
|
—
|
|
|||
Total real estate
|
|
4,795
|
|
|
5,125
|
|
|
—
|
|
|||
Consumer:
|
|
|
|
|
|
|
|
|
|
|||
Equity loans and lines of credit
|
|
146
|
|
|
206
|
|
|
—
|
|
|||
Total with no related allowance recorded
|
|
5,296
|
|
|
5,884
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and industrial
|
|
22
|
|
|
22
|
|
|
1
|
|
|||
Real estate:
|
|
|
|
|
|
|
|
|
|
|||
Agricultural real estate
|
|
51
|
|
|
51
|
|
|
1
|
|
|||
Consumer:
|
|
|
|
|
|
|
|
|
|
|||
Equity loans and lines of credit
|
|
997
|
|
|
997
|
|
|
34
|
|
|||
Total with an allowance recorded
|
|
1,070
|
|
|
1,070
|
|
|
36
|
|
|||
Total
|
|
$
|
6,366
|
|
|
$
|
6,954
|
|
|
$
|
36
|
|
|
|
Year Ended
December 31, 2018
|
|
Year Ended
December 31, 2017
|
|
Year Ended
December 31, 2016
|
||||||||||||||||||
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial and industrial
|
|
$
|
311
|
|
|
$
|
—
|
|
|
$
|
404
|
|
|
$
|
—
|
|
|
$
|
115
|
|
|
$
|
—
|
|
Agricultural production
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|
—
|
|
||||||
Total commercial
|
|
311
|
|
|
—
|
|
|
404
|
|
|
—
|
|
|
157
|
|
|
—
|
|
||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Owner occupied
|
|
17
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
162
|
|
|
—
|
|
||||||
Real estate construction and other land loans
|
|
2,857
|
|
|
85
|
|
|
1,228
|
|
|
114
|
|
|
2,393
|
|
|
196
|
|
||||||
Commercial real estate
|
|
1,542
|
|
|
51
|
|
|
1,370
|
|
|
53
|
|
|
903
|
|
|
55
|
|
||||||
Agricultural real estate
|
|
1,173
|
|
|
159
|
|
|
—
|
|
|
—
|
|
|
173
|
|
|
—
|
|
||||||
Other real estate
|
|
702
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total real estate
|
|
6,291
|
|
|
295
|
|
|
2,622
|
|
|
167
|
|
|
3,631
|
|
|
251
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity loans and lines of credit
|
|
217
|
|
|
—
|
|
|
132
|
|
|
—
|
|
|
598
|
|
|
—
|
|
||||||
Consumer and installment
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
41
|
|
|
—
|
|
||||||
Total consumer
|
|
217
|
|
|
—
|
|
|
138
|
|
|
—
|
|
|
639
|
|
|
—
|
|
||||||
Total with no related allowance recorded
|
|
6,819
|
|
|
295
|
|
|
3,164
|
|
|
167
|
|
|
4,427
|
|
|
251
|
|
||||||
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
With an allowance recorded:
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|||||||||||
Commercial and industrial
|
|
55
|
|
|
4
|
|
|
38
|
|
|
1
|
|
|
441
|
|
|
3
|
|
||||||
Agricultural production
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
104
|
|
|
—
|
|
||||||
Total commercial
|
|
55
|
|
|
4
|
|
|
38
|
|
|
1
|
|
|
545
|
|
|
3
|
|
||||||
Real estate:
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
||||||||
Owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
120
|
|
|
—
|
|
||||||
Real estate construction and other land loans
|
|
—
|
|
|
—
|
|
|
1,827
|
|
|
—
|
|
|
171
|
|
|
—
|
|
||||||
Commercial real estate
|
|
200
|
|
|
12
|
|
|
470
|
|
|
—
|
|
|
548
|
|
|
—
|
|
||||||
Agricultural real estate
|
|
49
|
|
|
3
|
|
|
43
|
|
|
3
|
|
|
—
|
|
|
—
|
|
||||||
Other real estate
|
|
86
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total real estate
|
|
335
|
|
|
15
|
|
|
2,340
|
|
|
3
|
|
|
839
|
|
|
—
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity loans and lines of credit
|
|
1,054
|
|
|
57
|
|
|
239
|
|
|
32
|
|
|
203
|
|
|
—
|
|
||||||
Consumer and installment
|
|
3
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
19
|
|
|
—
|
|
||||||
Total consumer
|
|
1,057
|
|
|
57
|
|
|
240
|
|
|
32
|
|
|
222
|
|
|
—
|
|
||||||
Total with an allowance recorded
|
|
1,447
|
|
|
76
|
|
|
2,618
|
|
|
36
|
|
|
1,606
|
|
|
3
|
|
||||||
Total
|
|
$
|
8,266
|
|
|
$
|
371
|
|
|
$
|
5,782
|
|
|
$
|
203
|
|
|
$
|
6,033
|
|
|
$
|
254
|
|
Troubled Debt Restructurings:
|
|
Number of Loans
|
|
Pre-Modification Outstanding Recorded Investment (1)
|
|
Principal Modification
|
|
Post Modification Outstanding Recorded Investment (2)
|
|
Outstanding Recorded Investment
|
|||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial and industrial
|
|
1
|
|
|
$
|
38
|
|
|
$
|
—
|
|
|
$
|
38
|
|
|
$
|
30
|
|
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real Estate - Commercial
|
|
1
|
|
|
$
|
166
|
|
|
$
|
—
|
|
|
$
|
166
|
|
|
$
|
161
|
|
Total
|
|
2
|
|
|
$
|
204
|
|
|
$
|
—
|
|
|
$
|
204
|
|
|
$
|
191
|
|
(1)
|
Amounts represent the recorded investment in loans before recognizing effects of the TDR, if any.
|
(2)
|
Balance outstanding after principal modification, if any borrower reduction to recorded investment.
|
Troubled Debt Restructurings:
|
|
Number of Loans
|
|
Pre-Modification Outstanding Recorded Investment (1)
|
|
Principal Modification
|
|
Post Modification Outstanding Recorded Investment (2)
|
|
Outstanding Recorded Investment
|
|||||||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Agricultural real estate
|
|
1
|
|
|
59
|
|
|
—
|
|
|
59
|
|
|
51
|
|
||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Equity loans and line of credit
|
|
2
|
|
|
490
|
|
|
—
|
|
|
1,066
|
|
|
1,059
|
|
||||
Total
|
|
3
|
|
|
$
|
549
|
|
|
$
|
—
|
|
|
$
|
1,125
|
|
|
$
|
1,110
|
|
(1)
|
Amounts represent the recorded investment in loans before recognizing effects of the TDR, if any.
|
(2)
|
Balance outstanding after principal modification, if any borrower reduction to recorded investment.
|
Troubled Debt Restructurings:
|
|
Number of Loans
|
|
Pre-Modification Outstanding Recorded Investment (1)
|
|
Principal Modification
|
|
Post Modification Outstanding Recorded Investment (2)
|
|
Outstanding Recorded Investment
|
|||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial and Industrial
|
|
2
|
|
|
$
|
45
|
|
|
$
|
—
|
|
|
$
|
45
|
|
|
$
|
40
|
|
(1)
|
Amounts represent the recorded investment in loans before recognizing effects of the TDR, if any.
|
(2)
|
Balance outstanding after principal modification, if any borrower reduction to recorded investment.
|
6.
|
BANK PREMISES AND EQUIPMENT
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Land
|
|
$
|
1,131
|
|
|
$
|
1,131
|
|
Buildings and improvements
|
|
6,753
|
|
|
6,754
|
|
||
Furniture, fixtures and equipment
|
|
12,665
|
|
|
12,345
|
|
||
Leasehold improvements
|
|
4,369
|
|
|
4,594
|
|
||
|
|
24,918
|
|
|
24,824
|
|
||
Less accumulated depreciation and amortization
|
|
(16,434
|
)
|
|
(15,426
|
)
|
||
|
|
$
|
8,484
|
|
|
$
|
9,398
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Balance, beginning of year
|
$
|
53,777
|
|
|
$
|
40,231
|
|
|
$
|
29,917
|
|
Acquired goodwill
|
—
|
|
|
13,546
|
|
|
10,314
|
|
|||
Impairment
|
—
|
|
|
—
|
|
|
—
|
|
|||
Balance, end of year
|
$
|
53,777
|
|
|
$
|
53,777
|
|
|
$
|
40,231
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Savings
|
|
$
|
114,565
|
|
|
$
|
116,534
|
|
Money market
|
|
267,820
|
|
|
299,638
|
|
||
NOW accounts
|
|
252,439
|
|
|
296,406
|
|
||
Time, $250,000 or more
|
|
30,902
|
|
|
34,441
|
|
||
Time, under $250,000
|
|
65,915
|
|
|
93,629
|
|
||
|
|
$
|
731,641
|
|
|
$
|
840,648
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Savings
|
|
$
|
37
|
|
|
$
|
33
|
|
|
$
|
27
|
|
Money market
|
|
419
|
|
|
211
|
|
|
133
|
|
|||
NOW accounts
|
|
414
|
|
|
317
|
|
|
290
|
|
|||
Time certificates of deposit
|
|
283
|
|
|
408
|
|
|
525
|
|
|||
|
|
$
|
1,153
|
|
|
$
|
969
|
|
|
$
|
975
|
|
|
|
Federal
|
|
State
|
|
Total
|
||||||
2018
|
|
|
|
|
|
|
||||||
Current
|
|
$
|
3,995
|
|
|
$
|
2,689
|
|
|
$
|
6,684
|
|
Deferred
|
|
(140
|
)
|
|
76
|
|
|
(64
|
)
|
|||
Provision for income taxes
|
|
$
|
3,855
|
|
|
$
|
2,765
|
|
|
$
|
6,620
|
|
2017
|
|
|
|
|
|
|
||||||
Current
|
|
$
|
1,188
|
|
|
$
|
1,224
|
|
|
$
|
2,412
|
|
Deferred
|
|
3,328
|
|
|
518
|
|
|
3,846
|
|
|||
Re-measurement resulting from Tax Act
|
|
3,535
|
|
|
—
|
|
|
3,535
|
|
|||
Provision for income taxes
|
|
$
|
8,051
|
|
|
$
|
1,742
|
|
|
$
|
9,793
|
|
2016
|
|
|
|
|
|
|
||||||
Current
|
|
$
|
3,720
|
|
|
$
|
605
|
|
|
$
|
4,325
|
|
Deferred
|
|
1,100
|
|
|
1,492
|
|
|
2,592
|
|
|||
Provision for income taxes
|
|
$
|
4,820
|
|
|
$
|
2,097
|
|
|
$
|
6,917
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Deferred tax assets:
|
|
|
|
|
|
|
||
Allowance for credit losses
|
|
$
|
2,380
|
|
|
$
|
2,100
|
|
Deferred compensation
|
|
4,347
|
|
|
4,415
|
|
||
Unrealized loss on available-for-sale investment securities
|
|
1,850
|
|
|
—
|
|
||
Net operating loss carryovers
|
|
2,407
|
|
|
2,549
|
|
||
Mark-to-market adjustment
|
|
53
|
|
|
87
|
|
||
Other deferred tax assets
|
|
445
|
|
|
386
|
|
||
Other-than-temporary impairment
|
|
192
|
|
|
192
|
|
||
Loan and investment impairment
|
|
1,450
|
|
|
1,793
|
|
||
Partnership income
|
|
55
|
|
|
68
|
|
||
State taxes
|
|
575
|
|
|
375
|
|
||
Total deferred tax assets
|
|
13,754
|
|
|
11,965
|
|
||
Deferred tax liabilities:
|
|
|
|
|
|
|
||
Finance leases
|
|
(173
|
)
|
|
(365
|
)
|
||
Unrealized gain on available-for-sale investment securities
|
|
—
|
|
|
(1,186
|
)
|
||
Core deposit intangible
|
|
(760
|
)
|
|
(895
|
)
|
||
FHLB stock
|
|
(234
|
)
|
|
(234
|
)
|
||
Loan origination costs
|
|
(891
|
)
|
|
(783
|
)
|
||
Bank premises and equipment
|
|
(513
|
)
|
|
(478
|
)
|
||
Total deferred tax liabilities
|
|
(2,571
|
)
|
|
(3,941
|
)
|
||
Net deferred tax assets
|
|
$
|
11,183
|
|
|
$
|
8,024
|
|
|
2018
|
|
2017
|
|
2016
|
|||
Federal income tax, at statutory rate
|
21.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
State taxes, net of Federal tax benefit
|
7.8
|
%
|
|
4.8
|
%
|
|
6.2
|
%
|
Tax exempt investment security income, net
|
(2.7
|
)%
|
|
(10.1
|
)%
|
|
(10.3
|
)%
|
Bank owned life insurance, net
|
(0.6
|
)%
|
|
(0.8
|
)%
|
|
(1.1
|
)%
|
Compensation - Stock Compensation
|
(0.6
|
)%
|
|
(2.8
|
)%
|
|
—
|
%
|
Re-measurement resulting from Tax Act
|
—
|
%
|
|
14.8
|
%
|
|
—
|
%
|
Change in uncertain tax positions
|
(0.3
|
)%
|
|
(0.9
|
)%
|
|
0.1
|
%
|
Other
|
(0.9
|
)%
|
|
1.1
|
%
|
|
1.4
|
%
|
Effective tax rate
|
23.7
|
%
|
|
41.1
|
%
|
|
31.3
|
%
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
Balance, beginning of year
|
$
|
83
|
|
|
$
|
298
|
|
Additions based on tax positions related to prior years
|
—
|
|
|
—
|
|
||
Reductions due to the statute of limitations for tax positions of prior years
|
(83
|
)
|
|
(215
|
)
|
||
Balance, end of year
|
$
|
—
|
|
|
$
|
83
|
|
Years Ending December 31,
|
|
||
2019
|
$
|
2,384
|
|
2020
|
2,078
|
|
|
2021
|
1,805
|
|
|
2022
|
1,552
|
|
|
2023
|
1,448
|
|
|
Thereafter
|
4,334
|
|
|
|
$
|
13,601
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Commitments to extend credit
|
|
$
|
309,824
|
|
|
$
|
347,001
|
|
Standby letters of credit
|
|
$
|
2,450
|
|
|
$
|
3,140
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Basic Earnings Per Common Share:
|
|
|
|
|
|
|
|
|
|
|||
Net income
|
|
$
|
21,289
|
|
|
$
|
14,026
|
|
|
$
|
15,182
|
|
Weighted average shares outstanding
|
|
13,699,823
|
|
|
12,472,095
|
|
|
11,331,166
|
|
|||
Net income per common share
|
|
$
|
1.55
|
|
|
$
|
1.12
|
|
|
$
|
1.34
|
|
Diluted Earnings Per Common Share:
|
|
|
|
|
|
|
|
|
|
|||
Net income
|
|
$
|
21,289
|
|
|
$
|
14,026
|
|
|
$
|
15,182
|
|
Weighted average shares outstanding
|
|
13,699,823
|
|
|
12,472,095
|
|
|
11,331,166
|
|
|||
Effect of dilutive stock options and warrants
|
|
129,171
|
|
|
250,255
|
|
|
104,283
|
|
|||
Weighted average shares of common stock and common stock equivalents
|
|
13,828,994
|
|
|
12,722,350
|
|
|
11,435,449
|
|
|||
Net income per diluted common share
|
|
$
|
1.54
|
|
|
$
|
1.10
|
|
|
$
|
1.33
|
|
|
|
Shares
|
|
Weighted
Average Exercise Price |
|
Weighted
Average Remaining Contractual Term (Years) |
|
Aggregate
Intrinsic Value |
|||||
Options outstanding at January 1, 2016
|
|
240,695
|
|
|
$
|
6.83
|
|
|
|
|
|
||
Options exercised
|
|
(35,280
|
)
|
|
$
|
6.55
|
|
|
|
|
|
||
Options forfeited
|
|
(3,200
|
)
|
|
$
|
8.77
|
|
|
|
|
|
||
Options outstanding at December 31, 2016
|
|
202,215
|
|
|
$
|
6.87
|
|
|
3.26
|
|
$
|
2,647
|
|
Options assumed in acquisition
|
|
313,360
|
|
|
$
|
11.79
|
|
|
|
|
|
||
Options exercised
|
|
(281,125
|
)
|
|
$
|
10.47
|
|
|
|
|
|
|
|
Options forfeited
|
|
(1,580
|
)
|
|
$
|
8.11
|
|
|
|
|
|
|
|
Options outstanding at December 31, 2017
|
|
232,870
|
|
|
$
|
9.13
|
|
|
2.87
|
|
$
|
2,574
|
|
Options exercised
|
|
(74,030
|
)
|
|
$
|
9.97
|
|
|
|
|
|
|
|
Options forfeited
|
|
(4,400
|
)
|
|
$
|
10.85
|
|
|
|
|
|
|
|
Options outstanding at December 31, 2018
|
|
154,440
|
|
|
$
|
8.68
|
|
|
2.81
|
|
$
|
1,554
|
|
Options vested or expected to vest at December 31, 2018
|
|
154,440
|
|
|
$
|
8.68
|
|
|
2.81
|
|
$
|
1,554
|
|
Options exercisable at December 31, 2018
|
|
154,440
|
|
|
$
|
8.68
|
|
|
2.81
|
|
$
|
1,554
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Intrinsic value of options exercised
|
|
$
|
767
|
|
|
$
|
2,807
|
|
|
$
|
235
|
|
Cash received from options exercised
|
|
$
|
738
|
|
|
$
|
2,835
|
|
|
$
|
231
|
|
Excess tax benefit realized for option exercises
|
|
$
|
142
|
|
|
$
|
805
|
|
|
$
|
30
|
|
|
|
Shares
|
|
Weighted
Average
Grant Date Fair Value
|
|||
Nonvested outstanding shares at January 1, 2016
|
|
53,028
|
|
|
$
|
12.34
|
|
Granted
|
|
54,650
|
|
|
$
|
14.10
|
|
Vested
|
|
(12,438
|
)
|
|
$
|
12.38
|
|
Forfeited
|
|
(1,739
|
)
|
|
$
|
12.95
|
|
Nonvested outstanding shares at December 31, 2016
|
|
93,501
|
|
|
$
|
13.35
|
|
Vested
|
|
(27,373
|
)
|
|
$
|
13.34
|
|
Forfeited
|
|
(2,360
|
)
|
|
$
|
14.07
|
|
Nonvested outstanding shares at December 31, 2017
|
|
63,768
|
|
|
$
|
13.33
|
|
Granted
|
|
22,204
|
|
|
$
|
20.76
|
|
Vested
|
|
(20,733
|
)
|
|
$
|
13.09
|
|
Forfeited
|
|
(1,710
|
)
|
|
$
|
14.37
|
|
Nonvested outstanding shares at December 31, 2018
|
|
63,529
|
|
|
$
|
15.98
|
|
Balance, January 1, 2018
|
$
|
11,885
|
|
Disbursements
|
622
|
|
|
Amounts repaid
|
(769
|
)
|
|
Balance, December 31, 2018
|
$
|
11,738
|
|
Undisbursed commitments to related parties, December 31, 2018
|
$
|
1,442
|
|
(In thousands)
|
|
2018
|
|
2017
|
||||
ASSETS
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
$
|
2,326
|
|
|
$
|
3,296
|
|
Investment in Bank subsidiary
|
|
222,514
|
|
|
210,816
|
|
||
Other assets
|
|
367
|
|
|
750
|
|
||
Total assets
|
|
$
|
225,207
|
|
|
$
|
214,862
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
||
Liabilities:
|
|
|
|
|
|
|
||
Junior subordinated debentures due to subsidiary grantor trust
|
|
$
|
5,155
|
|
|
$
|
5,155
|
|
Other liabilities
|
|
314
|
|
|
148
|
|
||
Total liabilities
|
|
5,469
|
|
|
5,303
|
|
||
Shareholders’ equity:
|
|
|
|
|
|
|
||
Common stock
|
|
103,851
|
|
|
103,314
|
|
||
Retained earnings
|
|
120,294
|
|
|
103,419
|
|
||
Accumulated other comprehensive (loss) income, net of tax
|
|
(4,407
|
)
|
|
2,826
|
|
||
Total shareholders’ equity
|
|
219,738
|
|
|
209,559
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
225,207
|
|
|
$
|
214,862
|
|
(In thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Income:
|
|
|
|
|
|
|
|
|
|
|||
Dividends declared by Subsidiary - eliminated in consolidation
|
|
$
|
2,850
|
|
|
$
|
3,133
|
|
|
$
|
13,010
|
|
Other income
|
|
6
|
|
|
4
|
|
|
4
|
|
|||
Total income
|
|
2,856
|
|
|
3,137
|
|
|
13,014
|
|
|||
Expenses:
|
|
|
|
|
|
|
|
|
|
|||
Interest on junior subordinated deferrable interest debentures
|
|
199
|
|
|
147
|
|
|
121
|
|
|||
Professional fees
|
|
217
|
|
|
231
|
|
|
133
|
|
|||
Other expenses
|
|
548
|
|
|
1,019
|
|
|
779
|
|
|||
Total expenses
|
|
964
|
|
|
1,397
|
|
|
1,033
|
|
|||
Income before equity in undistributed net income of Subsidiary
|
|
1,892
|
|
|
1,740
|
|
|
11,981
|
|
|||
Equity in undistributed net income of Subsidiary, net of distributions
|
|
19,075
|
|
|
11,754
|
|
|
2,852
|
|
|||
Income before income tax benefit
|
|
20,967
|
|
|
13,494
|
|
|
14,833
|
|
|||
Benefit from income taxes
|
|
322
|
|
|
532
|
|
|
349
|
|
|||
Net income
|
|
$
|
21,289
|
|
|
$
|
14,026
|
|
|
$
|
15,182
|
|
|
|
|
|
|
|
|
||||||
Comprehensive income
|
|
$
|
13,912
|
|
|
$
|
16,867
|
|
|
$
|
10,204
|
|
(In thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|||
Net income
|
|
$
|
21,289
|
|
|
$
|
14,026
|
|
|
$
|
15,182
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|||||
Undistributed net income of subsidiary, net of distributions
|
|
(19,075
|
)
|
|
(11,754
|
)
|
|
(2,852
|
)
|
|||
Stock-based compensation
|
|
482
|
|
|
384
|
|
|
284
|
|
|||
Tax benefit from exercise of stock options
|
|
—
|
|
|
—
|
|
|
(30
|
)
|
|||
Net decrease (increase) in other assets
|
|
372
|
|
|
(114
|
)
|
|
(405
|
)
|
|||
Net increase (decrease) in other liabilities
|
|
166
|
|
|
(7
|
)
|
|
64
|
|
|||
Benefit for deferred income taxes
|
|
11
|
|
|
155
|
|
|
98
|
|
|||
Net cash provided by operating activities
|
|
3,245
|
|
|
2,690
|
|
|
12,341
|
|
|||
Cash flows used in investing activities:
|
|
|
|
|
|
|
|
|
|
|||
Investment in subsidiary
|
|
—
|
|
|
(151
|
)
|
|
(9,584
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|||
Cash dividend payments on common stock
|
|
(4,270
|
)
|
|
(3,010
|
)
|
|
(2,715
|
)
|
|||
Purchase and retirement of common stock
|
|
(894
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from exercise of stock options
|
|
738
|
|
|
2,880
|
|
|
231
|
|
|||
Proceeds from stock issued under employee stock purchase plan
|
|
211
|
|
|
—
|
|
|
—
|
|
|||
Excess tax benefit from exercise of stock options
|
|
—
|
|
|
—
|
|
|
30
|
|
|||
Net cash used in financing activities
|
|
(4,215
|
)
|
|
(130
|
)
|
|
(2,454
|
)
|
|||
(Decrease) increase in cash and cash equivalents
|
|
(970
|
)
|
|
2,409
|
|
|
303
|
|
|||
Cash and cash equivalents at beginning of year
|
|
3,296
|
|
|
887
|
|
|
584
|
|
|||
Cash and cash equivalents at end of year
|
|
$
|
2,326
|
|
|
$
|
3,296
|
|
|
$
|
887
|
|
|
|
|
|
|
|
|
||||||
Supplemental Disclosure of Cash Flow Information:
|
|
|
|
|
|
|
||||||
Cash paid during the year for interest
|
|
$
|
185
|
|
|
$
|
142
|
|
|
$
|
112
|
|
Non-cash investing and financing activities:
|
|
|
|
|
|
|
|
|
||||
Common stock issued in acquisitions
|
|
$
|
—
|
|
|
$
|
28,405
|
|
|
$
|
16,678
|
|
|
Q4 2018
|
|
Q3 2018
|
|
Q2 2018
|
|
Q1 2018
|
|
Q4 2017
|
|
Q3 2017
|
|
Q2 2017
|
|
Q1 2017
|
||||||||||||||||
Net interest income
|
$
|
15,973
|
|
|
$
|
15,907
|
|
|
$
|
15,397
|
|
|
$
|
15,426
|
|
|
$
|
15,567
|
|
|
$
|
13,578
|
|
|
$
|
13,786
|
|
|
$
|
13,308
|
|
Provision for (Reversal of) credit losses
|
—
|
|
|
—
|
|
|
50
|
|
|
—
|
|
|
—
|
|
|
(900
|
)
|
|
(150
|
)
|
|
(100
|
)
|
||||||||
Net interest income after provision for credit losses
|
15,973
|
|
|
15,907
|
|
|
15,347
|
|
|
15,426
|
|
|
15,567
|
|
|
14,478
|
|
|
13,936
|
|
|
13,408
|
|
||||||||
Other non-interest income
|
2,367
|
|
|
2,083
|
|
|
2,604
|
|
|
1,956
|
|
|
1,947
|
|
|
2,385
|
|
|
1,939
|
|
|
1,763
|
|
||||||||
Net realized gains (losses) on investment securities
|
37
|
|
|
380
|
|
|
82
|
|
|
815
|
|
|
(6
|
)
|
|
169
|
|
|
2,157
|
|
|
482
|
|
||||||||
Total non-interest expense
|
11,410
|
|
|
10,791
|
|
|
11,499
|
|
|
11,368
|
|
|
13,109
|
|
|
10,394
|
|
|
10,789
|
|
|
10,114
|
|
||||||||
Provision for income taxes
|
1,686
|
|
|
1,827
|
|
|
1,569
|
|
|
1,538
|
|
|
4,064
|
|
|
2,144
|
|
|
2,295
|
|
|
1,290
|
|
||||||||
Net income
|
$
|
5,281
|
|
|
$
|
5,752
|
|
|
$
|
4,965
|
|
|
$
|
5,291
|
|
|
$
|
335
|
|
|
$
|
4,494
|
|
|
$
|
4,948
|
|
|
$
|
4,249
|
|
Basic earnings per share
|
$
|
0.38
|
|
|
$
|
0.42
|
|
|
$
|
0.36
|
|
|
$
|
0.39
|
|
|
$
|
0.02
|
|
|
$
|
0.37
|
|
|
$
|
0.41
|
|
|
$
|
0.35
|
|
Diluted earnings per share
|
$
|
0.38
|
|
|
$
|
0.42
|
|
|
$
|
0.36
|
|
|
$
|
0.39
|
|
|
$
|
0.02
|
|
|
$
|
0.36
|
|
|
$
|
0.40
|
|
|
$
|
0.35
|
|
ITEM 9 -
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.
|
ITEM 9A -
|
CONTROLS AND PROCEDURES
|
ITEM 9B -
|
OTHER INFORMATION
|
ITEM 10 -
|
DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT.
|
ITEM 11 -
|
EXECUTIVE COMPENSATION.
|
ITEM 12 -
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.
|
ITEM 13 -
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.
|
ITEM 14 -
|
PRINCIPAL ACCOUNTING FEES AND SERVICES
|
Exhibit
|
|
|
Number
|
|
Exhibit
|
|
|
|
2.1
|
|
|
|
|
|
2.2
|
|
|
|
|
|
2.3
|
|
|
|
|
|
2.4
|
|
|
|
|
|
2.5
|
|
|
|
|
|
3.1
|
|
|
|
|
|
3.2
|
|
|
|
|
|
3.2
|
|
|
|
|
|
3.3
|
|
|
|
|
|
3.5
|
|
|
|
|
|
3.6
|
|
|
|
|
|
4.1
|
|
|
|
|
4.2
|
|
|
|
|
|
10.1
|
|
|
|
|
|
10.2
|
|
|
|
|
|
10.3
|
|
|
|
|
|
10.4
|
|
|
|
|
|
10.5
|
|
|
|
|
|
10.6
|
|
|
|
|
|
10.7
|
|
|
|
|
|
10.8
|
|
|
|
|
|
10.9
|
|
|
|
|
|
10.10
|
|
|
|
|
|
10.11
|
|
|
|
|
|
10.12
|
|
|
|
|
|
10.13
|
|
|
|
|
|
10.14
|
|
|
|
|
10.15
|
|
|
|
|
|
10.16
|
|
|
|
|
|
10.17
|
|
|
|
|
|
10.18
|
|
|
|
|
|
10.19
|
|
|
|
|
|
10.20
|
|
|
|
|
|
10.21
|
|
|
|
|
|
10.22
|
|
|
|
|
|
10.23
|
|
|
|
|
|
10.24
|
|
|
|
|
|
10.25
|
|
|
|
|
|
10.26
|
|
|
|
|
|
10.27
|
|
|
|
|
|
10.28
|
|
|
|
|
|
10.29
|
|
|
|
|
|
10.30
|
|
|
|
|
|
10.31
|
|
|
|
|
|
10.32
|
|
|
|
|
|
10.33
|
|
|
|
|
|
10.34
|
|
|
|
|
|
10.35
|
|
|
|
|
|
10.36
|
|
|
|
|
|
10.37
|
|
|
|
|
|
10.38
|
|
|
|
|
|
10.39
|
|
|
|
|
|
10.40
|
|
|
|
|
|
10.41
|
|
|
|
|
|
10.42
|
|
|
|
|
|
10.43
|
|
|
|
|
|
10.44
|
|
|
|
|
|
10.45
|
|
|
|
|
|
10.46
|
|
|
|
|
|
10.47
|
|
|
|
|
|
10.48
|
|
|
|
|
|
10.49
|
|
|
|
|
|
10.50
|
|
|
|
|
|
10.51
|
|
|
|
|
|
10.52
|
|
|
|
|
|
10.53
|
|
|
|
|
|
10.54
|
|
|
|
|
|
10.55
|
|
|
|
|
|
10.56
|
|
|
|
|
|
10.57
|
|
|
|
|
|
10.58
|
|
|
|
|
|
10.59
|
|
|
|
|
|
10.60
|
|
|
|
|
|
10.61
|
|
|
|
|
|
10.62
|
|
|
|
|
|
10.63
|
|
|
|
|
10.64
|
|
|
|
|
|
10.65
|
|
|
|
|
|
10.66
|
|
|
|
|
|
10.67
|
|
|
|
|
|
10.68
|
|
|
|
|
|
10.69
|
|
|
|
|
|
10.70
|
|
|
|
|
|
10.71
|
|
|
|
|
|
10.72
|
|
|
|
|
|
10.73
|
|
|
|
|
|
10.74
|
|
|
|
|
|
10.75
|
|
|
|
|
|
10.76
|
|
|
|
|
|
10.77
|
|
|
|
|
|
10.78
|
|
|
|
|
|
10.79
|
|
|
|
|
|
10.80
|
|
|
|
|
|
10.81
|
|
|
|
|
|
10.82
|
|
|
|
|
|
10.83
|
|
|
|
|
|
10.84
|
|
|
|
|
|
21
|
|
|
|
|
|
22
|
|
N/A
|
|
|
|
23
|
|
|
|
|
|
24
|
|
|
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32.1
|
|
|
|
|
|
32.2
|
|
|
|
|
|
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:
|
March 8, 2019
|
|
By:
|
/s/ James M. Ford
|
|
|
James M. Ford
|
||
|
|
President and Chief Executive Officer
|
||
|
|
(principal executive officer)
|
||
|
|
|
||
Date:
|
March 8, 2019
|
|
By:
|
/s/ David A. Kinross
|
|
|
David A. Kinross
|
||
|
|
Executive Vice President and Chief Financial Officer
|
||
|
|
(principal accounting officer and principal financial officer)
|
/s/ James M. Ford
|
|
Date: March 8, 2019
|
|
James M. Ford,
|
|
|
|
President and Chief Executive Officer and Director (principal executive officer)
|
|
|
|
|
|
|
|
/s/ David A. Kinross
|
|
Date: March 8, 2019
|
|
David A. Kinross,
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
(principal accounting officer and principal financial officer)
|
|
|
|
|
|
|
|
/s/ Daniel J. Doyle
|
|
Date: March 8, 2019
|
|
Daniel J. Doyle,
|
|
|
|
Chairman of the Board and Director
|
|
|
|
|
|
|
|
/s/ Daniel N. Cunningham
|
|
Date: March 8, 2019
|
|
Daniel N. Cunningham, Lead Independent Director
|
|
|
|
|
|
|
|
/s/ Edwin S. Darden
|
|
Date: March 8, 2019
|
|
Edwin S. Darden, Director
|
|
|
|
|
|
|
|
/s/ F.T. “Tommy” Elliott, IV
|
|
Date: March 8, 2019
|
|
F.T. “Tommy” Elliott, IV, Director
|
|
|
|
|
|
|
|
/s/ Robert J. Flautt
|
|
Date: March 8, 2019
|
|
Robert J. Flautt, Director
|
|
|
|
|
|
|
|
/s/ Gary D. Gall
|
|
Date: March 8, 2019
|
|
Gary D. Gall, Director
|
|
|
|
|
|
|
|
/s/ Steven D. McDonald
|
|
Date: March 8, 2019
|
|
Steven D. McDonald, Director
|
|
|
|
|
|
|
|
/s/ Louis McMurray
|
|
Date: March 8, 2019
|
|
Louis McMurray, Director
|
|
|
|
|
|
|
|
/s/ Karen Musson
|
|
Date: March 8, 2019
|
|
Karen Musson, Director
|
|
|
|
|
|
|
|
/s/ William S. Smittcamp
|
|
Date: March 8, 2019
|
|
William S. Smittcamp, Director
|
|
|
|
|
|
|
|
|
|
|
|
A.
|
The Executive is a valued executive of the Bank, and currently serves as the Bank’s Executive Vice President and Chief Administrative Officer.
|
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
|
||||||
March
|
2033
|
|
$30,000
|
|
|
|
November
|
2034
|
|
$40,000
|
|
|
|
July
|
2036
|
|
$50,000
|
|
April
|
2033
|
|
$30,500
|
|
|
|
December
|
2034
|
|
$40,500
|
|
|
|
August
|
2036
|
|
$50,500
|
|
May
|
2033
|
|
$31,000
|
|
|
|
January
|
2035
|
|
$41,000
|
|
|
|
September
|
2036
|
|
$51,000
|
|
June
|
2033
|
|
$31,500
|
|
|
|
February
|
2035
|
|
$41,500
|
|
|
|
October
|
2036
|
|
$51,500
|
|
July
|
2033
|
|
$32,000
|
|
|
|
March
|
2035
|
|
$42,000
|
|
|
|
November
|
2036
|
|
$52,000
|
|
August
|
2033
|
|
$32,500
|
|
|
|
April
|
2035
|
|
$42,500
|
|
|
|
December
|
2036
|
|
$52,500
|
|
September
|
2033
|
|
$33,000
|
|
|
|
May
|
2035
|
|
$43.000
|
|
|
|
January
|
2037
|
|
$53,000
|
|
October
|
2033
|
|
$33,500
|
|
|
|
June
|
2035
|
|
$43,500
|
|
|
|
February
|
2037
|
|
$53,500
|
|
November
|
2033
|
|
$34,000
|
|
|
|
July
|
2035
|
|
$44,000
|
|
|
|
March
|
2037
|
|
$54,000
|
|
December
|
2033
|
|
$34,500
|
|
|
|
August
|
2035
|
|
$44,500
|
|
|
|
April
|
2037
|
|
$54,500
|
|
January
|
2034
|
|
$35,000
|
|
|
|
September
|
2035
|
|
$45,000
|
|
|
|
May
|
2037
|
|
$55,000
|
|
February
|
2034
|
|
$35,500
|
|
|
|
October
|
2035
|
|
$45,500
|
|
|
|
June
|
2037
|
|
$55,500
|
|
March
|
2034
|
|
$36,000
|
|
|
|
November
|
2035
|
|
$46,000
|
|
|
|
July
|
2037
|
|
$56,000
|
|
April
|
2034
|
|
$36,500
|
|
|
|
December
|
2035
|
|
$46,500
|
|
|
|
August
|
2037
|
|
$56,500
|
|
May
|
2034
|
|
$37,000
|
|
|
|
January
|
2036
|
|
$47,000
|
|
|
|
September
|
2037
|
|
$57,000
|
|
June
|
2034
|
|
$37,500
|
|
|
|
February
|
2036
|
|
$47,500
|
|
|
|
October
|
2037
|
|
$57,500
|
|
July
|
2034
|
|
$38,000
|
|
|
|
March
|
2036
|
|
$48,000
|
|
|
|
November
|
2037
|
|
$58,000
|
|
August
|
2034
|
|
$38,500
|
|
|
|
April
|
2036
|
|
$48,500
|
|
|
|
December
|
2037
|
|
$58,500
|
|
September
|
2034
|
|
$39,000
|
|
|
|
May
|
2036
|
|
$49,000
|
|
|
|
January
|
2038
|
|
$59,000
|
|
October
|
2034
|
|
$39,500
|
|
|
|
June
|
2036
|
|
$49,500
|
|
|
|
February
|
2038
|
|
$59,500
|
|
|
|
|
|
|
|
|
|
|
|
March
|
2038
|
|
$60,000
|
|
A.
|
Restrictions on Contracts and Payments for Insured Depository Institutions in Troubled Status
.
|
Discount Rate:
|
The discount rate as used in the calculations for this Agreement shall comply with the accounting standards contained in ASC 715. The initial rate shall be four and 42/100 percent (4.42%) and shall be adjusted quarterly.
|
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/ James M. Ford
James Ford
President and Chief Executive Officer
Dated:
2/19/2019
|
EXECUTIVE:
JAMES J. KIM
/s/ James J. Kim
James J. Kim
Dated:
2/19/2019
|
Insurers and Policy Numbers:
|
|
Massachusetts Mutual Life Insurance Company
|
|
|
|
|
|
39142000
|
|
|
|
Bank:
|
|
Central Valley Community Bank
|
|
|
|
Insured:
|
|
James J. Kim
|
|
|
|
Relationship of Insured to Bank:
|
|
EVP & Chief Administrative Officer
|
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 eighty 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.
|
(a)
|
The Bank’s share of the cash value of the policy on the date of such assignment, as defined in this Agreement; or
|
(b)
|
The amount of the premiums which have been paid by the Bank prior to the date of such assignment, plus interest.
|
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:
James M. Ford
James Ford
President and Chief Executive Officer
|
INSURED:
JAMES J. KIM
James J. Kim
James J. Kim
|
Name
|
|
State of Incorporation
|
|
|
|
Central Valley Community Bank
|
|
California
|
Service 1
st
Capital Trust I
|
|
Delaware
|
/s/ Crowe LLP
|
|
|
|
Sacramento, California
|
|
March 8, 2019
|
|
/s/ James M. Ford
|
|
Date: March 8, 2019
|
James M. Ford,
|
|
|
/s/ David A. Kinross
|
|
Date: March 8, 2019
|
David A. Kinross,
|
|
|
|
/s/ James M. Ford
|
|
JAMES M. FORD
|
|
President and Chief Executive Officer
|
|
/s/ David A. Kinross
|
|
DAVID A. KINROSS
|
|
Executive Vice President and Chief Financial Officer
|