Michigan
|
38-3391345
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
Title of each class
|
Name of each exchange on which registered
|
|
Common Stock
|
The Nasdaq Stock Market
|
Large accelerated filer
☐
|
Accelerated filer
☒
|
Non-accelerated filer
☐
|
Smaller reporting company
☐
|
(Do not check if smaller
|
|||
reporting company)
|
PART 1
|
Page
|
|
Item 1:
|
1
|
|
Item 1A:
|
13
|
|
Item 1B:
|
21
|
|
Item 2:
|
21
|
|
Item 3:
|
21
|
|
Item 4:
|
22
|
|
PART II
|
||
Item 5:
|
22
|
|
Item 6:
|
24
|
|
Item 7:
|
25
|
|
Item 7A:
|
46
|
|
Item 8:
|
47
|
|
Item 9:
|
92
|
|
Item 9A:
|
92
|
|
Item 9B:
|
94
|
|
PART III
|
||
Item 10:
|
94
|
|
Item 11:
|
94
|
|
Item 12:
|
94 | |
Item 13:
|
95
|
|
Item 14:
|
95
|
|
PART IV
|
||
Item 15:
|
96
|
|
99
|
(dollars in thousands)
|
December 31,
|
|||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||
Nonperforming loans
|
$
|
8,426
|
$
|
12,335
|
$
|
16,003
|
$
|
28,946
|
$
|
75,361
|
||||||||||
Other repossessed assets
|
38
|
40
|
6
|
---
|
50
|
|||||||||||||||
Other real estate owned
|
28,242
|
36,796
|
51,582
|
66,438
|
57,984
|
|||||||||||||||
Total nonperforming assets
|
$
|
36,706
|
$
|
49,171
|
$
|
67,591
|
$
|
95,384
|
$
|
133,395
|
||||||||||
Total delinquencies 30 days or greater past due
|
$
|
2,841
|
$
|
5,520
|
$
|
7,887
|
$
|
13,138
|
$
|
55,748
|
(dollars in thousands)
|
For the Year Ended December 31,
|
|||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||
Provision for loan losses
|
$
|
(3,350
|
)
|
$
|
(4,250
|
)
|
$
|
(7,100
|
)
|
$
|
(4,700
|
)
|
$
|
22,460
|
||||||
Net charge-offs (recoveries)
|
(1,514
|
)
|
(1,309
|
)
|
802
|
11,085
|
29,657
|
|||||||||||||
Net charge-offs to average loans
|
(0.14
|
)%
|
(0.13
|
)%
|
0.08
|
%
|
0.99
|
%
|
2.18
|
%
|
||||||||||
Nonperforming loans to total loans
|
0.75
|
%
|
1.18
|
%
|
1.52
|
%
|
2.70
|
%
|
6.19
|
%
|
||||||||||
Loans transferred to ORE to average loans
|
0.47
|
%
|
0.34
|
%
|
0.88
|
%
|
3.42
|
%
|
3.32
|
%
|
||||||||||
Performing troubled debt restructurings ("TDRs") to average loans
|
4.47
|
%
|
5.61
|
%
|
6.24
|
%
|
5.15
|
%
|
1.91
|
%
|
(Dollars in thousands)
|
December 31
|
|||||||||||||||||||||||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||||||||||||||||||||||
Amount
|
% of Total Loans
|
Amount
|
% of Total Loans
|
Amount
|
% of Total Loans
|
Amount
|
% of Total Loans
|
Amount
|
% of Total Loans
|
|||||||||||||||||||||||||||||||
Real estate - construction (1)
|
$
|
77,564
|
7
|
%
|
$
|
86,413
|
8
|
%
|
$
|
89,631
|
9
|
%
|
$
|
90,191
|
8
|
%
|
$
|
133,228
|
11
|
|||||||||||||||||||||
Real estate - mortgage
|
412,967
|
37
|
385,927
|
37
|
413,328
|
39
|
478,076
|
45
|
535,961
|
44
|
||||||||||||||||||||||||||||||
Commercial and industrial
|
327,674
|
29
|
274,099
|
26
|
259,700
|
25
|
227,051
|
21
|
264,679
|
22
|
||||||||||||||||||||||||||||||
Total commercial
|
818,205
|
73
|
746,439
|
72
|
762,659
|
72
|
795,318
|
74
|
933,868
|
77
|
||||||||||||||||||||||||||||||
Residential mortgage
|
190,249
|
17
|
188,648
|
18
|
182,625
|
17
|
156,891
|
15
|
135,227
|
11
|
||||||||||||||||||||||||||||||
Consumer
|
110,029
|
10
|
107,290
|
10
|
107,064
|
10
|
118,766
|
11
|
148,101
|
12
|
||||||||||||||||||||||||||||||
Total loans
|
1,118,483
|
100
|
%
|
1,042,377
|
100
|
%
|
1,052,348
|
100
|
%
|
1,070,975
|
100
|
%
|
1,217,196
|
100
|
||||||||||||||||||||||||||
Less: allowance for loan losses
|
(18,962
|
)
|
(20,798
|
)
|
(23,739
|
)
|
(31,641
|
)
|
(47,426
|
)
|
||||||||||||||||||||||||||||||
Total loans receivable, net
|
$
|
1,099,521
|
$
|
1,021,579
|
$
|
1,028,609
|
$
|
1,039,334
|
$
|
1,169,770
|
(1) | Consists of construction and development loans. |
(Dollars in thousands)
|
Maturing
|
|||||||||||||||
Within One Year
|
After One, But
Within Five Years
|
After Five Years
|
Total
|
|||||||||||||
Real estate - construction (1)
|
$
|
30,924
|
$
|
28,592
|
$
|
18,048
|
$
|
77,564
|
||||||||
Real estate - mortgage
|
69,376
|
211,536
|
132,055
|
412,967
|
||||||||||||
Commercial and industrial
|
131,991
|
183,789
|
11,894
|
327,674
|
||||||||||||
Total Commercial
|
232,291
|
423,917
|
161,997
|
818,205
|
||||||||||||
Residential mortgage
|
555
|
688
|
189,006
|
190,249
|
||||||||||||
Consumer
|
7,158
|
39,601
|
63,270
|
110,029
|
||||||||||||
Total Loans
|
$
|
240,004
|
$
|
464,206
|
$
|
414,273
|
$
|
1,118,483
|
||||||||
Maturing or Repricing
|
||||||||||||||||
Loans above:
|
||||||||||||||||
With predetermined interest rates
|
$
|
78,267
|
$
|
317,835
|
$
|
114,560
|
$
|
510,662
|
||||||||
With floating or adjustable rates
|
518,238
|
35,898
|
45,393
|
599,529
|
||||||||||||
Total (excluding nonaccrual loans)
|
$
|
596,505
|
$
|
353,733
|
$
|
159,953
|
1,110,191
|
|||||||||
Nonaccrual loans
|
8,292
|
|||||||||||||||
Total Loans
|
$
|
1,118,483
|
(1) | Consists of construction and development loans. |
(Dollars in thousands)
|
December 31
|
|||||||||||||||||||||||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||||||||||||||||||||||
Average Amount
|
Average Rate
|
Average Amount
|
Average Rate
|
Average Amount
|
Average Rate
|
Average Amount
|
Average Rate
|
Average Amount
|
Average Rate
|
|||||||||||||||||||||||||||||||
Noninterest bearing demand
|
$
|
359,384
|
---
|
%
|
$
|
317,332
|
---
|
%
|
$
|
323,368
|
---
|
%
|
$
|
296,926
|
---
|
%
|
$
|
238,974
|
---
|
%
|
||||||||||||||||||||
Interest bearing demand
|
274,100
|
0.1
|
272,689
|
0.1
|
225,250
|
0.2
|
185,591
|
0.2
|
224,843
|
0.3
|
||||||||||||||||||||||||||||||
Savings and money market accounts
|
449,623
|
0.2
|
472,920
|
0.4
|
420,553
|
0.5
|
369,758
|
0.6
|
315,640
|
0.6
|
||||||||||||||||||||||||||||||
Time
|
138,300
|
1.0
|
171,657
|
0.9
|
254,796
|
1.3
|
371,870
|
1.8
|
534,429
|
2.8
|
||||||||||||||||||||||||||||||
Total deposits
|
$
|
1,221,407
|
0.2
|
%
|
$
|
1,234,598
|
0.3
|
%
|
$
|
1,223,967
|
0.5
|
%
|
$
|
1,224,145
|
0.7
|
%
|
$
|
1,313,886
|
1.3
|
%
|
Three months or less
|
$
|
7,678
|
||
Over 3 months through 6 months
|
17,851
|
|||
Over 6 months through 1 year
|
16,372
|
|||
Over 1 year
|
8,247
|
|||
$
|
50,148
|
(Dollars in thousands)
|
December 31,
|
|||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||
U.S. Treasury and federal agency securities
|
$
|
67,164
|
$
|
54,439
|
$
|
42,564
|
$
|
27,613
|
$
|
8,109
|
||||||||||
U.S. Agency MBS and CMOs
|
16,688
|
19,365
|
23,761
|
3,886
|
---
|
|||||||||||||||
Tax-exempt state and municipal bonds
|
69,046
|
46,097
|
25,093
|
4,708
|
83
|
|||||||||||||||
Taxable state and municipal bonds
|
25,293
|
26,328
|
27,296
|
16,716
|
---
|
|||||||||||||||
Corporate bonds
|
13,766
|
11,212
|
7,526
|
1,081
|
---
|
|||||||||||||||
Other equity securities
|
1,502
|
1,466
|
1,557
|
1,042
|
1,011
|
|||||||||||||||
Total
|
$
|
193,459
|
$
|
158,907
|
$
|
127,797
|
$
|
55,046
|
$
|
9,203
|
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||
Due Within One Year
|
One to Five Years
|
Five to Ten Years
|
After Ten Years
|
No Contractual Maturity
|
||||||||||||||||||||||||||||||||||||
Amount
|
Average Yield
|
Amount
|
Average Yield
|
Amount
|
Average Yield
|
Amount
|
Average Yield
|
Amount
|
Average Yield
|
|||||||||||||||||||||||||||||||
U.S. Treasury and federal agency securities
|
$
|
---
|
---
|
%
|
$
|
60,598
|
1.28
|
%
|
$
|
6,566
|
1.85
|
%
|
$
|
---
|
---
|
%
|
$
|
---
|
---
|
%
|
||||||||||||||||||||
U.S. Agency MBS and CMOs
|
---
|
---
|
---
|
---
|
850
|
1.80
|
15,838
|
2.00
|
---
|
---
|
||||||||||||||||||||||||||||||
Tax-exempt state and municipal bonds (1)
|
20,154
|
1.06
|
3,792
|
2.49
|
38,293
|
3.37
|
6,807
|
3.17
|
---
|
---
|
||||||||||||||||||||||||||||||
Taxable state and municipal bonds
|
1,205
|
2.43
|
20,608
|
2.86
|
3,480
|
2.17
|
---
|
---
|
---
|
---
|
||||||||||||||||||||||||||||||
Corporate bonds
|
2,011
|
2.03
|
11,755
|
1.35
|
---
|
---
|
---
|
---
|
---
|
---
|
||||||||||||||||||||||||||||||
Other equity securities
|
---
|
---
|
---
|
---
|
---
|
---
|
---
|
---
|
1,502
|
2.15
|
||||||||||||||||||||||||||||||
Total (1)
|
$
|
23,370
|
1.21
|
%
|
$
|
96,753
|
1.66
|
%
|
$
|
49,189
|
3.05
|
%
|
$
|
22,645
|
2.35
|
%
|
$
|
1,502
|
2.15
|
%
|
(1) | Yields on tax-exempt securities are computed on a fully taxable-equivalent basis. |
Total Risk-Based
Capital Ratio
|
Tier 1 Risk-Based
Capital Ratio
|
Leverage Ratio
|
|
Well capitalized
|
10% or above
|
6% or above
|
5% or above
|
Adequately capitalized
|
8% or above
|
4% or above
|
4% or above
|
Undercapitalized
|
Less than 8%
|
Less than 4%
|
Less than 4%
|
Significantly undercapitalized
|
Less than 6%
|
Less than 3%
|
Less than 3%
|
Critically undercapitalized
|
--
|
--
|
A ratio of tangible equity to total assets of 2% or less
|
●
|
Variations in our anticipated or actual operating results or the results of our competitors;
|
|
●
|
Changes in investors' or analysts' perceptions of the risks and conditions of our business;
|
|
●
|
The size of the public float of our common stock;
|
|
●
|
Regulatory developments, including changes to regulatory capital levels, components of regulatory capital and how regulatory capital is calculated;
|
|
●
|
Interest rate changes or credit loss trends;
|
|
●
|
Trading volume in our common stock;
|
|
●
|
Market conditions; and
|
|
●
|
General economic conditions.
|
Location of Facility
|
Use
|
10753 Macatawa Drive, Holland
|
Main Branch, Administrative, and Loan Processing Offices
|
815 E. Main Street, Zeeland
|
Branch Office
|
116 Ottawa Avenue N.W., Grand Rapids
|
Branch Office (Leased facility, lease expires August 2020)
|
126 Ottawa Avenue N.W., Grand Rapids
|
Loan Center (Leased facility, lease expires August 2020)
|
141 E. 8th Street, Holland
|
Branch Office
|
489 Butternut Dr., Holland
|
Branch Office
|
701 Maple Avenue, Holland
|
Branch Office
|
699 E. 16th Street, Holland
|
Branch Office
|
41 N. State Street, Zeeland
|
Branch Office
|
2020 Baldwin Street, Jenison
|
Branch Office
|
6299 Lake Michigan Dr., Allendale
|
Branch Office
|
132 South Washington, Douglas
|
Branch Office
|
4758 – 136th Street, Hamilton
|
Branch Office (Leased facility, lease expires December 2019)
|
3526 Chicago Drive, Hudsonville
|
Branch Office
|
20 E. Lakewood Blvd., Holland
|
Branch Office
|
3191 – 44th Street, S.W., Grandville
|
Branch Office
|
2261 Byron Center Avenue S.W., Byron Center
|
Branch Office
|
5271 Clyde Park Avenue, S.W., Wyoming
|
Branch Office and Loan Center
|
4590 Cascade Road, Grand Rapids
|
Branch Office
|
3177 Knapp Street, N.E., Grand Rapids
|
Branch Office and Loan Center
|
15135 Whittaker Way, Grand Haven
|
Branch Office and Loan Center
|
12415 Riley Street, Holland
|
Branch Office
|
2750 Walker N.W., Walker
|
Branch Office
|
1575 – 68th Street S.E., Grand Rapids
|
Branch Office
|
2820 – 10 Mile Road, Rockford
|
Branch Office
|
520 Baldwin Street, Jenison
|
Branch Office
|
2440 Burton Street, S.E., Grand Rapids
|
Branch Office
|
6330 28
th
Street, S.E., Grand Rapids
|
Branch Office
|
ITEM 5: | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. |
2014
|
2013
|
|||||||||||||||||||||||
Quarter
|
High
|
Low
|
Dividends
Declared
|
High
|
Low
|
Dividends
Declared
|
||||||||||||||||||
First Quarter
|
$
|
5.70
|
$
|
4.93
|
$
|
0.02
|
$
|
6.10
|
$
|
2.88
|
$
|
---
|
||||||||||||
Second Quarter
|
5.32
|
4.75
|
0.02
|
6.00
|
4.70
|
---
|
||||||||||||||||||
Third Quarter
|
5.26
|
4.70
|
0.02
|
5.63
|
4.43
|
---
|
||||||||||||||||||
Fourth Quarter
|
5.52
|
4.77
|
0.02
|
5.48
|
4.68
|
---
|
Period Ending
|
||||||||||||||||||||||||
Index
|
12/31/09
|
12/31/10
|
12/31/11
|
12/31/12
|
12/31/13
|
12/31/14
|
||||||||||||||||||
Macatawa Bank Corporation
|
100.00
|
197.13
|
109.09
|
138.28
|
239.23
|
264.39
|
||||||||||||||||||
Russell 2000
|
100.00
|
126.86
|
121.56
|
141.43
|
196.34
|
205.95
|
||||||||||||||||||
SNL Bank NASDAQ
|
100.00
|
117.98
|
104.68
|
124.77
|
179.33
|
185.73
|
(Dollars in thousands, except per share data)
|
As of and for the Year Ended December 31,
|
|||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||
Financial Condition
|
||||||||||||||||||||
Total assets
|
$
|
1,583,846
|
$
|
1,517,405
|
$
|
1,560,718
|
$
|
1,507,667
|
$
|
1,578,261
|
||||||||||
Securities
|
193,459
|
158,907
|
127,797
|
55,046
|
9,203
|
|||||||||||||||
Loans
|
1,118,483
|
1,042,377
|
1,052,348
|
1,070,975
|
1,217,196
|
|||||||||||||||
Deposits
|
1,306,325
|
1,249,734
|
1,286,261
|
1,215,289
|
1,276,620
|
|||||||||||||||
Long-term debt
|
41,238
|
41,238
|
42,888
|
42,888
|
42,888
|
|||||||||||||||
Other borrowed funds
|
88,107
|
89,991
|
91,822
|
148,603
|
185,336
|
|||||||||||||||
Shareholders' equity
|
142,519
|
132,522
|
130,507
|
94,426
|
67,842
|
|||||||||||||||
Share Information*
|
||||||||||||||||||||
Basic earnings (loss) per common share
|
$
|
0.31
|
$
|
(0.29
|
)
|
$
|
1.31
|
$
|
0.26
|
$
|
(1.01
|
)
|
||||||||
Diluted earnings (loss) per common share
|
0.31
|
(0.29
|
)
|
1.31
|
0.26
|
(1.01
|
)
|
|||||||||||||
Book value per common share
|
4.21
|
3.92
|
3.59
|
2.26
|
1.96
|
|||||||||||||||
Tangible book value per common share
|
4.21
|
3.92
|
3.59
|
2.26
|
1.94
|
|||||||||||||||
Dividends per common share
|
0.08
|
---
|
---
|
---
|
---
|
|||||||||||||||
Dividend payout ratio
|
25.81
|
%
|
---
|
%
|
---
|
%
|
---
|
%
|
---
|
%
|
||||||||||
Average dilutive common shares outstanding
|
33,803,030
|
27,161,888
|
27,086,792
|
22,739,990
|
17,686,362
|
|||||||||||||||
Common shares outstanding at period end
|
33,866,789
|
33,801,097
|
27,203,825
|
27,082,823
|
17,679,621
|
|||||||||||||||
Operations
|
||||||||||||||||||||
Interest income
|
$
|
46,988
|
$
|
48,620
|
$
|
57,276
|
$
|
60,779
|
$
|
76,003
|
||||||||||
Interest expense
|
5,596
|
7,337
|
9,814
|
14,480
|
25,436
|
|||||||||||||||
Net interest income
|
41,392
|
41,283
|
47,462
|
46,299
|
50,567
|
|||||||||||||||
Provision for loan losses
|
(3,350
|
)
|
(4,250
|
)
|
(7,100
|
)
|
(4,700
|
)
|
22,460
|
|||||||||||
Net interest income (loss) after provision for loan losses
|
44,742
|
45,533
|
54,562
|
50,999
|
28,107
|
|||||||||||||||
Total noninterest income
|
16,214
|
16,141
|
15,628
|
14,892
|
18,023
|
|||||||||||||||
Total noninterest expense
|
45,910
|
47,855
|
53,283
|
60,062
|
62,681
|
|||||||||||||||
Income (loss) before income tax
|
15,046
|
13,819
|
16,907
|
5,829
|
(16,551
|
)
|
||||||||||||||
Federal income tax (benefit)
|
4,573
|
4,270
|
(18,583
|
)
|
---
|
1,303
|
||||||||||||||
Net income (loss)
|
10,473
|
9,549
|
35,490
|
5,829
|
(17,854
|
)
|
||||||||||||||
Dividend declared on preferred shares**
|
---
|
(17,575
|
)
|
---
|
---
|
---
|
||||||||||||||
Net income (loss) attributable to common shares
|
10,473
|
(8,026
|
)
|
35,490
|
5,829
|
(17,854
|
)
|
|||||||||||||
Performance Ratios
|
||||||||||||||||||||
Return on average equity
|
7.58
|
%
|
7.11
|
%
|
34.39
|
%
|
7.08
|
%
|
(24.99
|
)%
|
||||||||||
Return on average assets
|
0.70
|
0.63
|
2.37
|
0.38
|
(1.08
|
)
|
||||||||||||||
Yield on average interest-earning assets
|
3.48
|
3.58
|
4.21
|
4.32
|
4.93
|
|||||||||||||||
Cost on average interest-bearing liabilities
|
0.56
|
0.69
|
0.92
|
1.26
|
1.88
|
|||||||||||||||
Average net interest spread
|
2.92
|
2.89
|
3.29
|
3.06
|
3.05
|
|||||||||||||||
Average net interest margin
|
3.07
|
3.05
|
3.49
|
3.29
|
3.28
|
|||||||||||||||
Efficiency ratio
|
79.70
|
83.34
|
84.46
|
98.15
|
91.39
|
|||||||||||||||
Capital Ratios
|
||||||||||||||||||||
Period-end equity to total assets
|
9.00
|
%
|
8.73
|
%
|
8.36
|
%
|
6.26
|
%
|
4.30
|
%
|
||||||||||
Average equity to average assets
|
9.25
|
8.90
|
6.89
|
5.37
|
4.30
|
|||||||||||||||
Total risk-based capital ratio (consolidated)
|
15.55
|
15.69
|
14.98
|
13.15
|
9.65
|
|||||||||||||||
Credit Quality Ratios
|
||||||||||||||||||||
Allowance for loan losses to total loans
|
1.70
|
%
|
2.00
|
%
|
2.26
|
%
|
2.95
|
%
|
3.90
|
%
|
||||||||||
Nonperforming assets to total assets
|
2.32
|
3.24
|
4.33
|
6.33
|
8.45
|
|||||||||||||||
Net charge-offs to average loans
|
(0.14
|
)
|
(0.13
|
)
|
0.08
|
0.99
|
2.18
|
(Dollars in thousands)
|
December 31,
2014
|
December 31,
2013
|
December 31,
2012
|
December 31,
2011
|
December 31,
2010
|
|||||||||||||||
Nonperforming loans
|
$
|
8,426
|
$
|
12,335
|
$
|
16,003
|
$
|
28,946
|
$
|
75,361
|
||||||||||
Other repossessed assets
|
38
|
40
|
6
|
---
|
50
|
|||||||||||||||
Other real estate owned
|
28,242
|
36,796
|
51,582
|
66,438
|
57,984
|
|||||||||||||||
Total nonperforming assets
|
$
|
36,706
|
$
|
49,171
|
$
|
67,591
|
$
|
95,384
|
$
|
133,395
|
||||||||||
Total loan delinquencies 30 days or greater past due
|
$
|
2,841
|
$
|
5,520
|
$
|
7,887
|
$
|
13,138
|
$
|
55,748
|
For the year ended December 31,
|
||||||||||||||||||||
(Dollars in thousands)
|
2014
|
2013
|
2012
|
2011
|
2010
|
|||||||||||||||
Provision for loan losses
|
$
|
(3,350
|
)
|
$
|
(4,250
|
)
|
$
|
(7,100
|
)
|
$
|
(4,700
|
)
|
$
|
22,460
|
||||||
Net charge-offs (recoveries)
|
(1,514
|
)
|
(1,309
|
)
|
802
|
11,085
|
29,657
|
|||||||||||||
Net charge-offs to average loans
|
(0.14
|
)%
|
(0.13
|
)%
|
0.08
|
%
|
0.99
|
%
|
2.18
|
%
|
||||||||||
Nonperforming loans to total loans
|
0.75
|
%
|
1.18
|
%
|
1.52
|
%
|
2.70
|
%
|
6.19
|
%
|
||||||||||
Loans transferred to ORE to average loans
|
0.47
|
%
|
0.34
|
%
|
0.88
|
%
|
3.42
|
%
|
3.32
|
%
|
||||||||||
Performing troubled debt restructurings to average loans
|
4.47
|
%
|
5.61
|
%
|
6.24
|
%
|
5.15
|
%
|
1.91
|
%
|
For the years ended December 31,
|
||||||||||||||||||||||||||||||||||||
2014
|
2013
|
2012
|
||||||||||||||||||||||||||||||||||
Average
Balance
|
Interest
Earned
|
Average
Yield
|
Average
Balance
|
Interest
Earned
|
Average
Yield
|
Average
Balance
|
Interest
Earned
|
Average
Yield
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||||||||||
Taxable securities
|
$
|
120,980
|
$
|
2,006
|
1.66
|
%
|
$
|
108,079
|
$
|
1,798
|
1.67
|
%
|
$
|
79,379
|
$
|
1,544
|
1.94
|
%
|
||||||||||||||||||
Tax-exempt securities (1)
|
57,445
|
1,161
|
3.16
|
33,930
|
742
|
3.44
|
13,769
|
330
|
4.03
|
|||||||||||||||||||||||||||
Loans (2)
|
1,050,100
|
42,911
|
4.04
|
1,034,775
|
45,201
|
4.32
|
1,049,501
|
54,549
|
5.14
|
|||||||||||||||||||||||||||
Federal Home Loan Bank stock
|
11,319
|
471
|
4.10
|
11,236
|
393
|
3.45
|
11,236
|
351
|
3.08
|
|||||||||||||||||||||||||||
Federal funds sold and other short-term investments
|
115,021
|
439
|
0.38
|
167,833
|
486
|
0.29
|
197,423
|
502
|
0.25
|
|||||||||||||||||||||||||||
Total interest earning assets (1)
|
1,354,865
|
46,988
|
3.48
|
1,355,853
|
48,620
|
3.58
|
1,351,308
|
57,276
|
4.21
|
|||||||||||||||||||||||||||
Noninterest earning assets:
|
||||||||||||||||||||||||||||||||||||
Cash and due from banks
|
26,108
|
24,033
|
23,042
|
|||||||||||||||||||||||||||||||||
Other
|
113,113
|
129,954
|
124,510
|
|||||||||||||||||||||||||||||||||
Total assets
|
$
|
1,494,086
|
$
|
1,509,840
|
$
|
1,498,860
|
||||||||||||||||||||||||||||||
Liabilities
|
||||||||||||||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||||||||||||||
Interest bearing demand
|
$
|
274,100
|
308
|
0.11
|
%
|
$
|
272,689
|
369
|
0.13
|
%
|
$
|
225,250
|
346
|
0.15
|
%
|
|||||||||||||||||||||
Savings and money market accounts
|
449,623
|
936
|
0.21
|
472,920
|
1,999
|
0.43
|
420,553
|
2,003
|
0.48
|
|||||||||||||||||||||||||||
Time deposits
|
138,300
|
1,332
|
0.96
|
171,657
|
1,625
|
0.94
|
254,796
|
3,372
|
1.32
|
|||||||||||||||||||||||||||
Borrowings:
|
||||||||||||||||||||||||||||||||||||
Other borrowed funds
|
88,714
|
1,709
|
1.90
|
90,580
|
1,781
|
1.94
|
121,300
|
2,374
|
1.92
|
|||||||||||||||||||||||||||
Long-term debt
|
41,238
|
1,311
|
3.14
|
41,238
|
1,450
|
3.47
|
41,238
|
1,537
|
3.67
|
|||||||||||||||||||||||||||
Subordinated debt
|
---
|
---
|
---
|
1,013
|
113
|
11.10
|
1,650
|
182
|
11.00
|
|||||||||||||||||||||||||||
Total interest bearing liabilities
|
991,975
|
5,596
|
0.56
|
1,050,097
|
7,337
|
0.69
|
1,064,787
|
9,814
|
0.92
|
|||||||||||||||||||||||||||
Noninterest bearing liabilities:
|
||||||||||||||||||||||||||||||||||||
Noninterest bearing demand accounts
|
359,384
|
317,332
|
323,368
|
|||||||||||||||||||||||||||||||||
Other noninterest bearing liabilities
|
4,585
|
8,070
|
7,507
|
|||||||||||||||||||||||||||||||||
Shareholders' equity
|
138,142
|
134,341
|
103,198
|
|||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity
|
$
|
1,494,086
|
$
|
1,509,840
|
$
|
1,498,860
|
||||||||||||||||||||||||||||||
Net interest income
|
$
|
41,392
|
$
|
41,283
|
$
|
47,462
|
||||||||||||||||||||||||||||||
Net interest spread (1)
|
2.92
|
%
|
2.89
|
%
|
3.29
|
%
|
||||||||||||||||||||||||||||||
Net interest margin (1)
|
3.07
|
%
|
3.05
|
%
|
3.49
|
%
|
||||||||||||||||||||||||||||||
Ratio of average interest earning assets to average interest bearing liabilities
|
136.58
|
%
|
129.12
|
%
|
126.91
|
%
|
(1) | Yields are presented on a tax equivalent basis using a 35% tax rate. |
(2) | Loan fees of $583,000, $548,000 and $4.0 million for 2014, 2013 and 2012 are included in interest income. Includes average nonaccrual loans of approximately $12.6 million, $14.7 million and $24.1 million for 2014, 2013 and 2012. |
For the years ended December 31,
|
||||||||||||||||||||||||
2014 vs 2013
Increase (Decrease) Due to
|
2013 vs 2012
Increase (Decrease) Due to
|
|||||||||||||||||||||||
Volume
|
Rate
|
Total
|
Volume
|
Rate
|
Total
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Interest income
|
||||||||||||||||||||||||
Taxable securities
|
$
|
214
|
$
|
(6
|
)
|
$
|
208
|
$
|
501
|
$
|
(247
|
)
|
$
|
254
|
||||||||||
Tax-exempt securities
|
534
|
(115
|
)
|
419
|
473
|
(61
|
)
|
412
|
||||||||||||||||
Loans
|
646
|
(2,936
|
)
|
(2,290
|
)
|
(756
|
)
|
(8,592
|
)
|
(9,348
|
)
|
|||||||||||||
Federal Home Loan Bank stock
|
3
|
75
|
78
|
---
|
42
|
42
|
||||||||||||||||||
Federal funds sold and other short-term investments
|
(175
|
)
|
128
|
(47
|
)
|
(80
|
)
|
64
|
(16
|
)
|
||||||||||||||
Total interest income
|
1,222
|
(2,854
|
)
|
(1,632
|
)
|
138
|
(8,794
|
)
|
(8,656
|
)
|
||||||||||||||
Interest expense
|
||||||||||||||||||||||||
Interest bearing demand
|
$
|
2
|
$ |
(63
|
)
|
$
|
(61
|
)
|
$
|
67
|
$ |
(44
|
)
|
$
|
23
|
|||||||||
Savings and money market accounts
|
(94
|
)
|
(969
|
)
|
(1,063
|
)
|
235
|
(239
|
)
|
(4
|
)
|
|||||||||||||
Time deposits
|
(321
|
)
|
28
|
(293
|
)
|
(933
|
)
|
(814
|
)
|
(1,747
|
)
|
|||||||||||||
Other borrowed funds
|
(36
|
)
|
(36
|
)
|
(72
|
)
|
(604
|
)
|
11
|
(593
|
)
|
|||||||||||||
Long-term debt
|
---
|
(139
|
)
|
(139
|
)
|
---
|
(87
|
)
|
(87
|
)
|
||||||||||||||
Subordinated debt
|
(113
|
)
|
---
|
(113
|
)
|
(69
|
)
|
---
|
(69
|
)
|
||||||||||||||
Total interest expense
|
(562
|
)
|
(1,179
|
)
|
(1,741
|
)
|
(1,304
|
)
|
(1,173
|
)
|
(2,477
|
)
|
||||||||||||
Net interest income
|
$
|
1,784
|
$
|
(1,675
|
)
|
$
|
109
|
$
|
1,442
|
$
|
(7,621
|
)
|
$
|
(6,179
|
)
|
2014
|
2013
|
2012
|
||||||||||
Service charges and fees on deposit accounts
|
$
|
4,334
|
$
|
4,129
|
$
|
3,471
|
||||||
Net gains on mortgage loans
|
1,939
|
2,554
|
2,882
|
|||||||||
Trust fees
|
2,701
|
2,413
|
2,389
|
|||||||||
Gain as sales of securities
|
75
|
120
|
73
|
|||||||||
ATM and debit card fees
|
4,654
|
4,325
|
4,130
|
|||||||||
Bank owned life insurance (“BOLI”) income
|
678
|
713
|
847
|
|||||||||
Investment services fees
|
1,002
|
943
|
771
|
|||||||||
Other income
|
831
|
944
|
1,065
|
|||||||||
Total noninterest income
|
$
|
16,214
|
$
|
16,141
|
$
|
15,628
|
For the Year Ended December 31,
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
Gain on sales of loans
|
$
|
1,939
|
$
|
2,554
|
$
|
2,882
|
||||||
Real estate mortgage loans originated for sale
|
$
|
73,516
|
$
|
107,988
|
$
|
140,151
|
||||||
Real estate mortgage loans sold
|
75,023
|
116,757
|
135,929
|
|||||||||
Net gain on the sale of mortgage loans as a percent of real estate mortgage loans sold ("Loan sale margin")
|
2.58
|
%
|
2.19
|
%
|
2.12
|
%
|
2014
|
2013
|
2012
|
||||||||||
Salaries and benefits
|
$
|
23,137
|
$
|
23,012
|
$
|
22,986
|
||||||
Occupancy of premises
|
3,840
|
3,756
|
3,815
|
|||||||||
Furniture and equipment
|
3,190
|
3,224
|
3,259
|
|||||||||
Legal and professional
|
846
|
680
|
664
|
|||||||||
Marketing and promotion
|
932
|
870
|
929
|
|||||||||
Data processing
|
2,423
|
2,306
|
2,221
|
|||||||||
FDIC assessment
|
1,218
|
1,458
|
2,196
|
|||||||||
Interchange and other card expense
|
1,109
|
1,300
|
1,222
|
|||||||||
Bond and D&O insurance
|
659
|
740
|
909
|
|||||||||
FHLB Advance prepayment penalty
|
---
|
---
|
322
|
|||||||||
Administration and disposition of problem assets
|
3,071
|
5,524
|
9,960
|
|||||||||
Outside services
|
1,597
|
1,606
|
1,407
|
|||||||||
Other noninterest expense
|
3,888
|
3,379
|
3,393
|
|||||||||
Total noninterest expense
|
$
|
45,910
|
$
|
47,855
|
$
|
53,283
|
2014
|
2013
|
2012
|
||||||||||
Legal and professional – nonperforming assets
|
$
|
362
|
$
|
882
|
$
|
1,149
|
||||||
Repossessed and foreclosed property administration
|
1,710
|
2,817
|
3,516
|
|||||||||
Net losses on repossessed and foreclosed properties
|
999
|
1,825
|
5,295
|
|||||||||
Total
|
$
|
3,071
|
$
|
5,524
|
$
|
9,960
|
December 31, 2014
|
December 31, 2013
|
|||||||||||||||
Balance
|
Percent of
Total Loans
|
Balance
|
Percent of
Total Loans
|
|||||||||||||
Commercial real estate: (1)
|
||||||||||||||||
Residential developed
|
$
|
12,771
|
1.1
|
%
|
$
|
18,130
|
1.8
|
%
|
||||||||
Unsecured to residential developers
|
7,496
|
0.7
|
7,315
|
0.7
|
||||||||||||
Vacant and unimproved
|
50,372
|
4.5
|
42,988
|
4.1
|
||||||||||||
Commercial development
|
4,082
|
0.4
|
2,434
|
0.2
|
||||||||||||
Residential improved
|
69,612
|
6.2
|
76,294
|
7.3
|
||||||||||||
Commercial improved
|
269,757
|
24.1
|
247,195
|
23.7
|
||||||||||||
Manufacturing and industrial
|
76,441
|
6.9
|
77,984
|
7.5
|
||||||||||||
Total commercial real estate
|
490,531
|
43.9
|
472,340
|
45.3
|
||||||||||||
Commercial and industrial
|
327,674
|
29.3
|
%
|
274,099
|
26.3
|
%
|
||||||||||
Total commercial
|
818,205
|
73.2
|
746,439
|
71.6
|
||||||||||||
Consumer
|
||||||||||||||||
Residential mortgage
|
190,249
|
17.0
|
188,648
|
18.1
|
||||||||||||
Unsecured
|
948
|
0.1
|
1,337
|
0.1
|
||||||||||||
Home equity
|
98,887
|
8.8
|
95,961
|
9.2
|
||||||||||||
Other secured
|
10,194
|
0.9
|
9,992
|
1.0
|
||||||||||||
Total consumer
|
300,278
|
26.8
|
295,938
|
28.4
|
||||||||||||
Total loans
|
$
|
1,118,483
|
100.0
|
%
|
$
|
1,042,377
|
100.0
|
%
|
(1)
|
Includes both owner occupied and non-owner occupied commercial real estate.
|
Portfolio
Originations
|
Percent of
Total
|
Average
Loan Size
|
||||||||||
Commercial real estate:
|
||||||||||||
Residential developed
|
$
|
6,111
|
0.9
|
%
|
$
|
611
|
||||||
Unsecured to residential developers
|
---
|
---
|
---
|
|||||||||
Vacant and unimproved
|
24,883
|
3.7
|
1,659
|
|||||||||
Commercial development
|
2,359
|
0.4
|
2,359
|
|||||||||
Residential improved
|
73,662
|
11.1
|
295
|
|||||||||
Commercial improved
|
134,275
|
20.2
|
1,343
|
|||||||||
Manufacturing and industrial
|
24,563
|
3.7
|
682
|
|||||||||
Total commercial real estate
|
265,853
|
40.0
|
645
|
|||||||||
Commercial and industrial
|
301,358
|
45.2
|
37
|
|||||||||
Total commercial
|
567,211
|
85.2
|
66
|
|||||||||
Consumer
|
||||||||||||
Residential mortgage
|
50,102
|
7.6
|
200
|
|||||||||
Unsecured
|
206
|
---
|
9
|
|||||||||
Home equity
|
41,955
|
6.3
|
69
|
|||||||||
Other secured
|
6,056
|
0.9
|
19
|
|||||||||
Total consumer
|
98,319
|
14.8
|
51
|
|||||||||
Total loans
|
$
|
665,530
|
100.0
|
%
|
68
|
Foreclosed Asset Property Type |
Carrying
Value at
|
Foreclosed
Asset
|
Combined
Writedown
|
|||||||||
Single Family
|
$
|
469
|
---
|
%
|
3.3
|
%
|
||||||
Residential Lot
|
407
|
31.5
|
49.1
|
|||||||||
Multi-Family
|
---
|
---
|
---
|
|||||||||
Vacant Land
|
4,338
|
41.3
|
54.5
|
|||||||||
Residential Development
|
9,363
|
34.0
|
78.0
|
|||||||||
Commercial Office
|
1,556
|
31.6
|
57.7
|
|||||||||
Commercial Industrial
|
---
|
---
|
---
|
|||||||||
Commercial Improved
|
12,109
|
31.4
|
43.9
|
|||||||||
$
|
28,242
|
33.7
|
63.9
|
December 31
|
||||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||
Nonaccrual loans
|
$
|
8,292
|
$
|
12,182
|
$
|
15,385
|
$
|
26,876
|
$
|
74,761
|
||||||||||
Loans 90 days or more delinquent and still accruing
|
134
|
153
|
618
|
2,070
|
600
|
|||||||||||||||
Total nonperforming loans
|
8,426
|
12,335
|
16,003
|
28,946
|
75,361
|
|||||||||||||||
Foreclosed assets
|
28,242
|
36,796
|
51,582
|
66,438
|
57,984
|
|||||||||||||||
Repossessed assets
|
38
|
40
|
6
|
---
|
50
|
|||||||||||||||
Total nonperforming assets (NPAs)
|
36,706
|
49,171
|
67,591
|
95,384
|
133,395
|
|||||||||||||||
Accruing troubled debt restructurings (TDRs) (1)
|
46,197
|
57,790
|
65,024
|
55,679
|
25,395
|
|||||||||||||||
Total NPAs and accruing TDRs
|
$
|
82,903
|
$
|
106,961
|
$
|
132,615
|
$
|
151,063
|
$
|
158,790
|
||||||||||
NPLs to total loans
|
0.75
|
%
|
1.18
|
%
|
1.52
|
%
|
2.70
|
%
|
6.19
|
%
|
||||||||||
NPAs to total assets
|
2.32
|
%
|
3.24
|
%
|
4.33
|
%
|
6.33
|
%
|
8.45
|
%
|
(1) | Comprised of approximately $32.0 million and $43.6 million of commercial loans and $14.2 million and $14.2 million of consumer loans whose terms have been restructured at December 31, 2014 and 2013, respectively. Interest is being accrued on these loans under their restructured terms as they are less than 90 days past due. |
December 31
|
||||||||||||||||||||
(Dollars in thousands)
|
2014
|
2013
|
2012
|
2011
|
2010
|
|||||||||||||||
Portfolio loans:
|
||||||||||||||||||||
Average daily balance of loans for the year
|
$
|
1,048,496
|
$
|
1,030,766
|
$
|
1,041,833
|
$
|
1,120,857
|
$
|
1,360,548
|
||||||||||
Amount of loans outstanding at end of period
|
1,118,483
|
1,042,377
|
1,052,348
|
1,070,975
|
1,217,196
|
|||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||
Balance at beginning of year
|
20,798
|
23,739
|
31,641
|
47,426
|
54,623
|
|||||||||||||||
Provision for loan losses
|
(3,350
|
)
|
(4,250
|
)
|
(7,100
|
)
|
(4,700
|
)
|
22,460
|
|||||||||||
Loans charged-off:
|
||||||||||||||||||||
Real estate - construction
|
---
|
(55
|
)
|
(1,455
|
)
|
(3,014
|
)
|
(9,768
|
)
|
|||||||||||
Real estate - mortgage
|
(133
|
)
|
(1,010
|
)
|
(1,751
|
)
|
(7,967
|
)
|
(11,499
|
)
|
||||||||||
Commercial and industrial
|
(43
|
)
|
(317
|
)
|
(1,245
|
)
|
(2,935
|
)
|
(7,400
|
)
|
||||||||||
Total Commercial
|
(176
|
)
|
(1,382
|
)
|
(4,451
|
)
|
(13,916
|
)
|
(28,667
|
)
|
||||||||||
Residential mortgage
|
(9
|
)
|
(433
|
)
|
(2,257
|
)
|
(1,559
|
)
|
(1,364
|
)
|
||||||||||
Consumer
|
(491
|
)
|
(389
|
)
|
(788
|
)
|
(976
|
)
|
(1,806
|
)
|
||||||||||
(676
|
)
|
(2,204
|
)
|
(7,496
|
)
|
(16,451
|
)
|
(31,837
|
)
|
|||||||||||
Recoveries:
|
||||||||||||||||||||
Real estate - construction
|
869
|
1,568
|
5,521
|
2,541
|
613
|
|||||||||||||||
Real estate - mortgage
|
510
|
573
|
319
|
802
|
663
|
|||||||||||||||
Commercial and industrial
|
522
|
1,134
|
547
|
1,727
|
694
|
|||||||||||||||
Total Commercial
|
1,901
|
3,275
|
6,387
|
5,070
|
1,970
|
|||||||||||||||
Residential mortgage
|
142
|
65
|
142
|
39
|
115
|
|||||||||||||||
Consumer
|
147
|
173
|
165
|
257
|
95
|
|||||||||||||||
2,190
|
3,513
|
6,694
|
5,366
|
2,180
|
||||||||||||||||
Net (charge-offs) recoveries
|
1,514
|
1,309
|
(802
|
)
|
(11,085
|
)
|
(29,657
|
)
|
||||||||||||
Balance at end of year
|
$
|
18,962
|
$
|
20,798
|
$
|
23,739
|
$
|
31,641
|
$
|
47,426
|
||||||||||
Ratios:
|
||||||||||||||||||||
Net charge-offs to average loans outstanding
|
(0.14
|
)%
|
(0.13
|
)%
|
0.08
|
%
|
0.99
|
%
|
2.18
|
% | ||||||||||
Allowance for loan losses to loans outstanding at year-end
|
1.70
|
%
|
2.00
|
%
|
2.26
|
%
|
2.95
|
%
|
3.90
|
% | ||||||||||
Allowance for loan losses to nonperforming loans at year-end
|
225.04
|
%
|
168.61
|
%
|
148.34
|
%
|
109.31
|
%
|
62.93
|
% |
(in millions)
|
2014
|
2013
|
2012
|
2011
|
2010
|
|||||||||||||||
Commercial loans
|
$
|
818.2
|
$
|
746.4
|
$
|
762.7
|
$
|
795.3
|
$
|
933.9
|
||||||||||
Nonperforming loans
|
8.4
|
12.3
|
16.0
|
28.9
|
75.4
|
|||||||||||||||
Other real estate owned and repo assets
|
28.3
|
36.8
|
51.6
|
66.4
|
58.0
|
|||||||||||||||
Total nonperforming assets
|
36.7
|
49.2
|
67.6
|
95.4
|
133.4
|
|||||||||||||||
Net charge-offs (recoveries)
|
(1.5
|
)
|
(1.3
|
)
|
0.8
|
11.1
|
29.7
|
|||||||||||||
Total delinquencies
|
2.8
|
5.5
|
7.9
|
13.1
|
55.7
|
(Dollars in thousands) |
December 31
|
|||||||||||||||||||||||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||||||||||||||||||||||
Allowance Amount
|
% of Each Category to total Loans
|
Amount
|
% of Each Category to total Loans
|
Amount
|
% of Each Category to total Loans
|
Amount
|
% of Each Category to total Loans
|
Amount
|
% of Each Category to total Loans
|
|||||||||||||||||||||||||||||||
Commercial and commercial real estate
|
$
|
14,916
|
73
|
%
|
$
|
17,095
|
72
|
%
|
$
|
19,952
|
73
|
%
|
$
|
26,820
|
74
|
%
|
$
|
42,011
|
77
|
%
|
||||||||||||||||||||
Residential mortgage
|
2,689
|
17
|
2,368
|
18
|
2,544
|
17
|
3,093
|
15
|
2,155
|
11
|
||||||||||||||||||||||||||||||
Consumer
|
1,357
|
10
|
1,335
|
10
|
1,243
|
10
|
1,728
|
11
|
3,260
|
12
|
||||||||||||||||||||||||||||||
Total
|
$
|
18,962
|
100
|
%
|
$
|
20,798
|
100
|
%
|
$
|
23,739
|
100
|
%
|
$
|
31,641
|
100
|
%
|
$
|
47,426
|
100
|
%
|
December 31,
|
||||||||||||||||
(Dollars in thousands)
|
2014
|
2013
|
||||||||||||||
Balance of Loans
|
Allowance Amount
|
Balance of Loans
|
Allowance Amount
|
|||||||||||||
Commercial and commercial real estate:
|
||||||||||||||||
Impaired with allowance recorded
|
$
|
34,268
|
$
|
3,172
|
$
|
42,434
|
$
|
2,989
|
||||||||
Impaired with no allowance recorded
|
4,634
|
---
|
12,006
|
---
|
||||||||||||
Loss allocation factor on non-impaired loans
|
779,303
|
11,744
|
691,999
|
14,106
|
||||||||||||
818,205
|
14,916
|
746,439
|
17,095
|
|||||||||||||
Residential mortgage and consumer:
|
||||||||||||||||
Reserves on troubled debt restructurings
|
14,495
|
893
|
14,483
|
881
|
||||||||||||
Loss allocation factor
|
285,783
|
3,153
|
281,455
|
2,822
|
||||||||||||
Total
|
$
|
1,118,483
|
$
|
18,962
|
$
|
1,042,377
|
$
|
20,798
|
December 31,
|
||||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||
Total capital to risk weighted assets
|
15.6
|
%
|
15.7
|
%
|
15.0
|
%
|
13.2
|
%
|
9.7
|
%
|
||||||||||
Tier 1 capital to average assets
|
11.6
|
10.6
|
10.4
|
8.3
|
5.8
|
December 31,
|
||||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||
Average equity to average assets
|
11.6
|
%
|
11.2
|
%
|
9.2
|
%
|
7.8
|
%
|
6.7
|
%
|
||||||||||
Total risk-based capital
|
15.3
|
15.4
|
14.5
|
12.5
|
9.7
|
|||||||||||||||
Tier 1 risk-based capital
|
14.0
|
14.2
|
13.3
|
11.2
|
8.4
|
|||||||||||||||
Tier 1 capital to average assets
|
11.4
|
10.5
|
10.3
|
8.4
|
7.1
|
(Dollars in thousands)
|
Less than
1 year
|
1-3 years
|
3-5 years
|
More than
5 years
|
||||||||||||
Long term debt
|
$
|
---
|
$
|
---
|
$
|
---
|
$
|
41,238
|
||||||||
Time deposit maturities
|
85,486
|
29,039
|
5,358
|
---
|
||||||||||||
Other borrowed funds
|
1,938
|
24,051
|
62,118
|
---
|
||||||||||||
Total
|
$
|
87,424
|
$
|
53,090
|
$
|
67,476
|
$
|
41,238
|
Interest Rate Scenario
|
Economic
Value of
|
Percent
Change
|
Net Interest
Income
|
Percent
Change
|
||||||||||||
Interest rates up 200 basis points
|
$ |
176,484
|
1.04
|
%
|
$
|
44,487
|
3.10
|
%
|
||||||||
Interest rates up 100 basis points
|
176,084
|
0.81
|
43,860
|
1.65
|
||||||||||||
No change
|
174,665
|
---
|
43,147
|
---
|
||||||||||||
Interest rates down 100 basis points
|
163,414
|
(6.44
|
)
|
42,867
|
(0.65
|
)
|
||||||||||
Interest rates down 200 basis points
|
163,667
|
(6.30
|
)
|
42,563
|
(1.35
|
)
|
/s/ BDO USA, LLP
|
|
|
|
Grand Rapids, Michigan | |
February 19, 2015
|
|
2014
|
2013
|
|||||||
ASSETS
|
||||||||
Cash and due from banks
|
$
|
31,503
|
$
|
38,714
|
||||
Federal funds sold and other short-term investments
|
97,952
|
118,178
|
||||||
Cash and cash equivalents
|
129,455
|
156,892
|
||||||
Interest-bearing time deposits in other financial institutions
|
20,000
|
25,000
|
||||||
Securities available for sale, at fair value
|
161,874
|
139,659
|
||||||
Securities held to maturity (fair value 2014 - $31,428 and 2013 - $19,278)
|
31,585
|
19,248
|
||||||
Federal Home Loan Bank (FHLB) stock
|
11,238
|
11,236
|
||||||
Loans held for sale, at fair value
|
2,347
|
1,915
|
||||||
Total loans
|
1,118,483
|
1,042,377
|
||||||
Allowance for loan losses
|
(18,962
|
)
|
(20,798
|
)
|
||||
Net loans
|
1,099,521
|
1,021,579
|
||||||
Premises and equipment – net
|
52,894
|
53,641
|
||||||
Accrued interest receivable
|
3,399
|
3,231
|
||||||
Bank-owned life insurance
|
28,195
|
27,517
|
||||||
Other real estate owned
|
28,242
|
36,796
|
||||||
Net deferred tax asset
|
12,265
|
16,200
|
||||||
Other assets
|
2,831
|
4,491
|
||||||
Total assets
|
$
|
1,583,846
|
$
|
1,517,405
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Deposits
|
||||||||
Noninterest-bearing
|
$
|
404,143
|
$
|
344,550
|
||||
Interest-bearing
|
902,182
|
905,184
|
||||||
Total deposits
|
1,306,325
|
1,249,734
|
||||||
Other borrowed funds
|
88,107
|
89,991
|
||||||
Long-term debt
|
41,238
|
41,238
|
||||||
Accrued expenses and other liabilities
|
5,657
|
3,920
|
||||||
Total liabilities
|
1,441,327
|
1,384,883
|
||||||
Commitments and contingent liabilities
|
---
|
---
|
||||||
Shareholders' equity
|
||||||||
Common stock, no par value, 200,000,000 shares authorized; 33,866,789 shares issued and outstanding at December 31, 2014 and 33,801,097 shares issued and outstanding at December 31, 2013
|
216,460
|
216,263
|
||||||
Retained deficit
|
(74,002
|
)
|
(81,786
|
)
|
||||
Accumulated other comprehensive income (loss)
|
61
|
(1,955
|
)
|
|||||
Total shareholders' equity
|
142,519
|
132,522
|
||||||
Total liabilities and shareholders' equity
|
$
|
1,583,846
|
$
|
1,517,405
|
2014
|
2013
|
2012
|
||||||||||
Interest income
|
||||||||||||
Loans, including fees
|
$
|
42,911
|
$
|
45,201
|
$
|
54,549
|
||||||
Securities
|
||||||||||||
Taxable
|
2,006
|
1,798
|
1,544
|
|||||||||
Tax-exempt
|
1,161
|
742
|
330
|
|||||||||
FHLB Stock
|
471
|
393
|
351
|
|||||||||
Federal funds sold and other short-term investments
|
439
|
486
|
502
|
|||||||||
Total interest income
|
46,988
|
48,620
|
57,276
|
|||||||||
Interest expense
|
||||||||||||
Deposits
|
2,576
|
3,993
|
5,721
|
|||||||||
Other borrowings
|
1,709
|
1,781
|
2,374
|
|||||||||
Subordinated and long-term debt
|
1,311
|
1,563
|
1,719
|
|||||||||
Total interest expense
|
5,596
|
7,337
|
9,814
|
|||||||||
Net interest income
|
41,392
|
41,283
|
47,462
|
|||||||||
Provision for loan losses
|
(3,350
|
)
|
(4,250
|
)
|
(7,100
|
)
|
||||||
Net interest income after provision for loan losses
|
44,742
|
45,533
|
54,562
|
|||||||||
Noninterest income
|
||||||||||||
Service charges and fees
|
4,334
|
4,129
|
3,471
|
|||||||||
Net gains on mortgage loans
|
1,939
|
2,554
|
2,882
|
|||||||||
Trust fees
|
2,701
|
2,413
|
2,389
|
|||||||||
ATM and debit card fees
|
4,654
|
4,325
|
4,130
|
|||||||||
Gain on sales of securities
|
75
|
120
|
73
|
|||||||||
Other
|
2,511
|
2,600
|
2,683
|
|||||||||
Total noninterest income
|
16,214
|
16,141
|
15,628
|
|||||||||
Noninterest expense
|
||||||||||||
Salaries and benefits
|
23,137
|
23,012
|
22,986
|
|||||||||
Occupancy of premises
|
3,840
|
3,756
|
3,815
|
|||||||||
Furniture and equipment
|
3,190
|
3,224
|
3,259
|
|||||||||
Legal and professional
|
846
|
680
|
664
|
|||||||||
Marketing and promotion
|
932
|
870
|
929
|
|||||||||
Data processing
|
2,423
|
2,306
|
2,221
|
|||||||||
FDIC assessment
|
1,218
|
1,458
|
2,196
|
|||||||||
Interchange and other card expense
|
1,109
|
1,300
|
1,222
|
|||||||||
Bond and D&O Insurance
|
659
|
740
|
909
|
|||||||||
FHLB Advance prepayment penalty
|
---
|
---
|
322
|
|||||||||
Net losses on repossessed and foreclosed properties
|
999
|
1,825
|
5,295
|
|||||||||
Administration and disposition of problem assets
|
2,072
|
3,699
|
4,665
|
|||||||||
Other
|
5,485
|
4,985
|
4,800
|
|||||||||
Total noninterest expenses
|
45,910
|
47,855
|
53,283
|
|||||||||
Income before income tax
|
15,046
|
13,819
|
16,907
|
|||||||||
Income tax expense (benefit)
|
4,573
|
4,270
|
(18,583
|
)
|
||||||||
Net income
|
$
|
10,473
|
$
|
9,549
|
$
|
35,490
|
||||||
Effect of induced exchange of preferred stock
|
---
|
17,575
|
---
|
|||||||||
Net income available to common shares
|
$
|
10,473
|
$
|
(8,026
|
)
|
$
|
35,490
|
|||||
Basic earnings per common share
|
$
|
0.31
|
$
|
(0.29
|
)
|
$
|
1.31
|
|||||
Diluted earnings per common share
|
$
|
0.31
|
$
|
(0.29
|
)
|
$
|
1.31
|
|||||
Cash dividends per common share
|
$
|
0.08
|
$
|
---
|
$
|
---
|
2014
|
2013
|
2012
|
||||||||||
Net income
|
$
|
10,473
|
$
|
9,549
|
$
|
35,490
|
||||||
Other comprehensive income (loss):
|
||||||||||||
Unrealized gains (losses):
|
||||||||||||
Net change in unrealized gains (losses) on securities available for sale
|
3,177
|
(4,365
|
)
|
968
|
||||||||
Tax effect
|
(1,112
|
)
|
1,528
|
(339
|
)
|
|||||||
Net change in unrealized gains (losses) on securities available for sale, net of tax
|
2,065
|
(2,837
|
)
|
629
|
||||||||
Less: reclassification adjustments:
|
||||||||||||
Reclassification for gains included in net income
|
75
|
120
|
73
|
|||||||||
Tax effect
|
(26
|
)
|
(42
|
)
|
(26
|
)
|
||||||
Reclassification for gains included in net income, net of tax
|
49
|
78
|
47
|
|||||||||
Other comprehensive income (loss), net of tax
|
2,016
|
(2,915
|
)
|
582
|
||||||||
Comprehensive income
|
$
|
12,489
|
$
|
6,634
|
$
|
36,072
|
Preferred Stock
|
Common
|
Retained
|
Accumulated
Other
|
Total
Shareholders'
|
||||||||||||||||||||
Series A
|
Series B
|
Stock
|
Deficit
|
Income (Loss)
|
Equity
|
|||||||||||||||||||
Balance, January 1, 2012
|
$
|
30,604
|
$
|
2,560
|
$
|
187,709
|
$
|
(126,825
|
)
|
$
|
378
|
$
|
94,426
|
|||||||||||
Net income
|
35,490
|
35,490
|
||||||||||||||||||||||
Net change in unrealized gain (loss) on securities available for sale, net of tax
|
582
|
582
|
||||||||||||||||||||||
Stock compensation expense
|
9
|
9
|
||||||||||||||||||||||
Balance, December 31, 2012
|
$
|
30,604
|
$
|
2,560
|
$
|
187,718
|
$
|
(91,335
|
)
|
$
|
960
|
$
|
130,507
|
|||||||||||
Net income
|
9,549
|
9,549
|
||||||||||||||||||||||
Conversion of 300 shares of Preferred Stock Series B to 50,000 shares of common stock
|
(300
|
)
|
300
|
---
|
||||||||||||||||||||
Preferred stock exchange:
|
||||||||||||||||||||||||
Exchange of 31,290 shares of Preferred Stock Series A to 5,973,519 shares of common stock
|
(30,604
|
)
|
30,604
|
---
|
||||||||||||||||||||
Exchange of 2,300 shares of Preferred Stock Series B to 457,159 shares of common stock
|
(2,260
|
)
|
2,260
|
---
|
||||||||||||||||||||
Cash portion of exchange consideration, including exchange-related expenses
|
(4,734
|
)
|
(4,734
|
)
|
||||||||||||||||||||
Net change in unrealized gain (loss) on securities available for sale, net of tax
|
(2,915
|
)
|
(2,915
|
)
|
||||||||||||||||||||
Repurchase of 8,906 shares for taxes withheld on vested restricted stock
|
(45
|
)
|
(45
|
)
|
||||||||||||||||||||
Stock compensation expense
|
160
|
160
|
||||||||||||||||||||||
Balance, December 31, 2013
|
$
|
---
|
$
|
---
|
$
|
216,263
|
$
|
(81,786
|
)
|
$
|
(1,955
|
)
|
$
|
132,522
|
||||||||||
Net income
|
10,473
|
10,473
|
||||||||||||||||||||||
Common stock issuance costs
|
(102
|
)
|
(102
|
)
|
||||||||||||||||||||
Issuance of 392 shares of Common Stock on exercise of stock purchase warrants
|
4
|
4
|
||||||||||||||||||||||
Cash dividends at $.08 per share
|
(2,689
|
)
|
(2,689
|
)
|
||||||||||||||||||||
Repurchase of 20,534 shares for taxes withheld on vested restricted stock
|
(106
|
)
|
(106
|
)
|
||||||||||||||||||||
Tax effect of vested stock awards
|
63
|
63
|
||||||||||||||||||||||
Net change in unrealized gain (loss) on securities available for sale, net of tax
|
2,016
|
2,016
|
||||||||||||||||||||||
Stock compensation expense
|
338
|
338
|
||||||||||||||||||||||
Balance, December 31, 2014
|
$
|
---
|
$
|
---
|
$
|
216,460
|
$
|
(74,002
|
)
|
$
|
61
|
$
|
142,519
|
2014
|
2013
|
2012
|
||||||||||
Cash flows from operating activities
|
||||||||||||
Net income
|
$
|
10,473
|
$
|
9,549
|
$
|
35,490
|
||||||
Adjustments to reconcile net income to net cash from operating activities:
|
||||||||||||
Depreciation and amortization
|
3,139
|
3,067
|
2,970
|
|||||||||
Stock compensation expense
|
338
|
160
|
9
|
|||||||||
Tax effect of vested stock awards
|
63
|
---
|
---
|
|||||||||
Provision for loan losses
|
(3,350
|
)
|
(4,250
|
)
|
(7,100
|
)
|
||||||
Origination of loans for sale
|
(73,516
|
)
|
(107,988
|
)
|
(140,151
|
)
|
||||||
Proceeds from sales of loans originated for sale
|
75,023
|
116,757
|
135,929
|
|||||||||
Net gains on mortgage loans
|
(1,939
|
)
|
(2,554
|
)
|
(2,882
|
)
|
||||||
Gain on sales of securities
|
(75
|
)
|
(120
|
)
|
(73
|
)
|
||||||
Write-down of other real estate
|
1,623
|
2,922
|
5,236
|
|||||||||
Net (gain) loss on sales of other real estate
|
(624
|
)
|
(1,098
|
)
|
59
|
|||||||
Loss on disposal of fixed assets
|
---
|
---
|
89
|
|||||||||
Change in net deferred tax asset
|
2,849
|
4,150
|
(18,858
|
)
|
||||||||
FHLB advance prepayment penalty
|
---
|
---
|
322
|
|||||||||
Change in accrued interest receivable and other assets
|
1,555
|
124
|
2,149
|
|||||||||
Earnings in bank-owned life insurance
|
(678
|
)
|
(713
|
)
|
(847
|
)
|
||||||
Change in accrued expenses and other liabilities
|
1,737
|
(3,694
|
)
|
1,153
|
||||||||
Net cash from operating activities
|
16,618
|
16,312
|
13,495
|
|||||||||
Cash flows from investing activities
|
||||||||||||
Loan originations and payments, net
|
(79,524
|
)
|
7,741
|
8,657
|
||||||||
Change in interest-bearing deposits in other financial institutions
|
5,000
|
(25,000
|
)
|
---
|
||||||||
Purchases of securities available for sale
|
(43,882
|
)
|
(42,594
|
)
|
(115,248
|
)
|
||||||
Purchases of securities held to maturity
|
(25,225
|
)
|
(19,732
|
)
|
(4,000
|
)
|
||||||
Purchase FHLB stock
|
(2,519
|
)
|
---
|
---
|
||||||||
Proceeds from:
|
||||||||||||
Maturities and calls of securities available for sale
|
22,528
|
13,159
|
40,042
|
|||||||||
Sales of securities available for sale
|
10,936
|
5,241
|
4,595
|
|||||||||
Principal paydowns on securities
|
3,642
|
6,100
|
3,884
|
|||||||||
Sales of other real estate
|
12,487
|
16,501
|
18,729
|
|||||||||
Sale of FHLB stock
|
2,517
|
---
|
---
|
|||||||||
Additions to premises and equipment
|
(1,766
|
)
|
(2,407
|
)
|
(707
|
)
|
||||||
Net cash from investing activities
|
(95,806
|
)
|
(40,991
|
)
|
(44,048
|
)
|
||||||
Cash flows from financing activities
|
||||||||||||
Change in deposits
|
56,591
|
(36,527
|
)
|
70,972
|
||||||||
Repayments of other borrowed funds and subordinated debt
|
(1,884
|
)
|
(3,481
|
)
|
(57,103
|
)
|
||||||
Proceeds from issuance of common stock
|
4
|
---
|
---
|
|||||||||
Cash retained (paid) related to tax impact of vested stock awards
|
(63
|
)
|
---
|
---
|
||||||||
Cash dividends paid
|
(2,689
|
)
|
---
|
---
|
||||||||
Common stock issuance costs
|
(102
|
)
|
---
|
---
|
||||||||
Repurchase shares for taxes withheld on vested restricted stock
|
(106
|
)
|
(45
|
)
|
---
|
|||||||
Cash paid in preferred stock exchange
|
---
|
(4,734
|
)
|
---
|
||||||||
Net cash from financing activities
|
51,751
|
(44,787
|
)
|
13,869
|
||||||||
Net change in cash and cash equivalents
|
(27,437
|
)
|
(69,466
|
)
|
(16,684
|
)
|
||||||
Cash and cash equivalents at beginning of period
|
156,892
|
226,358
|
243,042
|
|||||||||
Cash and cash equivalents at end of period
|
$
|
129,455
|
$
|
156,892
|
$
|
226,358
|
2014
|
2013
|
2012
|
||||||||||
Supplemental cash flow information
|
||||||||||||
Interest paid
|
$
|
5,615
|
$
|
11,886
|
$
|
8,473
|
||||||
Income taxes paid
|
90
|
120
|
275
|
|||||||||
Supplemental noncash disclosures:
|
||||||||||||
Transfers from loans to other real estate
|
4,932
|
3,539
|
9,168
|
|||||||||
Security settlement
|
---
|
1,626
|
1,626
|
|||||||||
Conversion of 300 shares of Preferred Series B to 50,000 shares of common stock
|
---
|
300
|
---
|
|||||||||
Exchange of 31,290 shares of Preferred Series A to 5,973,519 shares of common stock
|
---
|
30,604
|
---
|
|||||||||
Exchange of 2,300 shares of Preferred Series B to 457,159 shares of common stock
|
---
|
2,260
|
---
|
Amortized
Cost
|
Gross
Unrealized
|
Gross
Unrealized
|
Fair
Value
|
|||||||||||||
December 31, 2014
|
||||||||||||||||
Available for Sale:
|
||||||||||||||||
U.S. Treasury and federal agency securities
|
$
|
67,612
|
$
|
53
|
$
|
(501
|
)
|
$
|
67,164
|
|||||||
U.S. Agency MBS and CMOs
|
16,692
|
67
|
(71
|
)
|
16,688
|
|||||||||||
Tax-exempt state and municipal bonds
|
37,203
|
419
|
(161
|
)
|
37,461
|
|||||||||||
Taxable state and municipal bonds
|
25,012
|
351
|
(70
|
)
|
25,293
|
|||||||||||
Corporate bonds and other debt securities
|
13,762
|
34
|
(30
|
)
|
13,766
|
|||||||||||
Other equity securities
|
1,500
|
2
|
---
|
1,502
|
||||||||||||
$
|
161,781
|
$
|
926
|
$
|
(833
|
)
|
$
|
161,874
|
||||||||
Held to Maturity
|
||||||||||||||||
Tax-exempt state and municipal bonds
|
$
|
31,585
|
$
|
64
|
$
|
(221
|
)
|
$
|
31,428
|
|||||||
December 31, 2013
|
||||||||||||||||
Available for Sale:
|
||||||||||||||||
U.S. Treasury and federal agency securities
|
$
|
55,701
|
$
|
92
|
$
|
(1,354
|
)
|
$
|
54,439
|
|||||||
U. S. Agency MBS and CMOs
|
20,029
|
9
|
(673
|
)
|
19,365
|
|||||||||||
Tax-exempt state and municipal bonds
|
27,920
|
47
|
(1,118
|
)
|
26,849
|
|||||||||||
Taxable state and municipal bonds
|
26,306
|
307
|
(285
|
)
|
26,328
|
|||||||||||
Corporate bonds and other debt securities
|
11,211
|
64
|
(63
|
)
|
11,212
|
|||||||||||
Other equity securities
|
1,500
|
---
|
(34
|
)
|
1,466
|
|||||||||||
$
|
142,667
|
$
|
519
|
$
|
(3,527
|
)
|
$
|
139,659
|
||||||||
Held to Maturity:
|
||||||||||||||||
Tax-exempt state and municipal bonds
|
$
|
19,248
|
$
|
46
|
$
|
(16
|
)
|
$
|
19,278
|
Held–to-Maturity Securities
|
Available-for-Sale Securities
|
|||||||||||||||
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
|||||||||
Due in one year or less
|
$
|
19,075
|
$
|
19,044
|
$
|
4,280
|
$
|
4,295
|
||||||||
Due from one to five years
|
640
|
638
|
96,108
|
96,112
|
||||||||||||
Due from five to ten years
|
11,610
|
11,492
|
37,532
|
37,580
|
||||||||||||
Due after ten years
|
260
|
254
|
22,361
|
22,385
|
||||||||||||
$
|
31,585
|
$
|
31,428
|
$
|
160,281
|
$
|
160,372
|
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
December 31, 2014
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
||||||||||||||||||
U.S. Treasury and federal agency securities
|
$
|
16,426
|
$
|
(45
|
)
|
$
|
35,350
|
$
|
(456
|
)
|
$
|
51,776
|
$
|
(501
|
)
|
|||||||||
U.S. Agency MBS and CMOs
|
---
|
---
|
9,732
|
(71
|
)
|
9,732
|
(71
|
)
|
||||||||||||||||
Tax-exempt state and municipal bonds
|
26,820
|
(264
|
)
|
4,545
|
(118
|
)
|
31,365
|
(382
|
)
|
|||||||||||||||
Taxable state and municipal bonds
|
3,982
|
(19
|
)
|
3,240
|
(51
|
)
|
7,222
|
(70
|
)
|
|||||||||||||||
Corporate bonds and other debt securities
|
4,187
|
(13
|
)
|
1,988
|
(17
|
)
|
6,175
|
(30
|
)
|
|||||||||||||||
Other equity securities
|
---
|
---
|
---
|
---
|
---
|
---
|
||||||||||||||||||
Total temporarily impaired
|
$
|
51,415
|
$
|
(341
|
)
|
$
|
54,855
|
$
|
(713
|
)
|
$
|
106,270
|
$
|
(1,054
|
)
|
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
December 31, 2013
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
||||||||||||||||||
U.S. Treasury and federal agency securities
|
$
|
43,212
|
$
|
(1,354
|
)
|
$
|
---
|
$
|
---
|
$
|
43,212
|
$
|
(1,354
|
)
|
||||||||||
U.S. Agency MBS and CMOs
|
18,494
|
(673
|
)
|
---
|
---
|
18,494
|
(673
|
)
|
||||||||||||||||
Tax-exempt state and municipal bonds
|
21,359
|
(1,066
|
)
|
831
|
(68
|
)
|
22,190
|
(1,134
|
)
|
|||||||||||||||
Taxable state and municipal bonds
|
9,599
|
(256
|
)
|
1,015
|
(29
|
)
|
10,614
|
(285
|
)
|
|||||||||||||||
Corporate bonds and other debt securities
|
3,928
|
(63
|
)
|
---
|
---
|
3,928
|
(63
|
)
|
||||||||||||||||
Other equity securities
|
1,466
|
(34
|
)
|
---
|
---
|
1,466
|
(34
|
)
|
||||||||||||||||
Total temporarily impaired
|
$
|
98,058
|
$
|
(3,446
|
)
|
$
|
1,846
|
$
|
(97
|
)
|
$
|
99,904
|
$
|
(3,543
|
)
|
December 31,
2014
|
December 31,
2013
|
|||||||
Commercial and industrial
|
$
|
327,674
|
$
|
274,099
|
||||
Commercial real estate:
|
||||||||
Residential developed
|
12,771
|
18,130
|
||||||
Unsecured to residential developers
|
7,496
|
7,315
|
||||||
Vacant and unimproved
|
50,372
|
42,988
|
||||||
Commercial development
|
4,082
|
2,434
|
||||||
Residential improved
|
69,612
|
76,294
|
||||||
Commercial improved
|
269,757
|
247,195
|
||||||
Manufacturing and industrial
|
76,441
|
77,984
|
||||||
Total commercial real estate
|
490,531
|
472,340
|
||||||
Consumer
|
||||||||
Residential mortgage
|
190,249
|
188,648
|
||||||
Unsecured
|
948
|
1,337
|
||||||
Home equity
|
98,887
|
95,961
|
||||||
Other secured
|
10,194
|
9,992
|
||||||
Total consumer
|
300,278
|
295,938
|
||||||
Total loans
|
1,118,483
|
1,042,377
|
||||||
Allowance for loan losses
|
(18,962
|
)
|
(20,798
|
)
|
||||
$
|
1,099,521
|
$
|
1,021,579
|
2014
|
Commercial
and
Industrial
|
Commercial
Real Estate
|
Consumer
|
Unallocated
|
Total
|
|||||||||||||||
Beginning balance
|
$
|
6,174
|
$
|
10,868
|
$
|
3,703
|
$
|
53
|
$
|
20,798
|
||||||||||
Charge-offs
|
(43
|
)
|
(134
|
)
|
(499
|
)
|
---
|
(676
|
)
|
|||||||||||
Recoveries
|
522
|
1,481
|
187
|
---
|
2,190
|
|||||||||||||||
Provision for loan losses
|
(480
|
)
|
(3,525
|
)
|
655
|
---
|
(3,350
|
)
|
||||||||||||
Ending Balance
|
$
|
6,173
|
$
|
8,690
|
$
|
4,046
|
$
|
53
|
$
|
18,962
|
2013
|
Commercial
and
Industrial
|
Commercial
Real Estate
|
Consumer
|
Unallocated
|
Total
|
|||||||||||||||
Beginning balance
|
$
|
6,459
|
$
|
13,457
|
$
|
3,787
|
$
|
36
|
$
|
23,739
|
||||||||||
Charge-offs
|
(317
|
)
|
(1,065
|
)
|
(822
|
)
|
---
|
(2,204
|
)
|
|||||||||||
Recoveries
|
1,134
|
2,141
|
238
|
---
|
3,513
|
|||||||||||||||
Provision for loan losses
|
(1,102
|
)
|
(3,665
|
)
|
500
|
17
|
(4,250
|
)
|
||||||||||||
Ending Balance
|
$
|
6,174
|
$
|
10,868
|
$
|
3,703
|
$
|
53
|
$
|
20,798
|
2012
|
Commercial
and
Industrial
|
Commercial
Real Estate
|
Consumer
|
Unallocated
|
Total
|
|||||||||||||||
Beginning balance
|
$
|
6,313
|
$
|
20,475
|
$
|
4,821
|
$
|
32
|
$
|
31,641
|
||||||||||
Charge-offs
|
(1,245
|
)
|
(3,206
|
)
|
(3,045
|
)
|
---
|
(7,496
|
)
|
|||||||||||
Recoveries
|
547
|
5,840
|
307
|
---
|
6,694
|
|||||||||||||||
Provision for loan losses
|
844
|
(9,652
|
)
|
1,704
|
4
|
(7,100
|
)
|
|||||||||||||
Ending Balance
|
$
|
6,459
|
$
|
13,457
|
$
|
3,787
|
$
|
36
|
$
|
23,739
|
December 31, 2014
|
Commercial
and
Industrial
|
Commercial Real Estate
|
Consumer
|
Unallocated
|
Total
|
|||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||
Ending allowance attributable to loans:
|
||||||||||||||||||||
Individually reviewed for impairment
|
$
|
2,429
|
$
|
743
|
$
|
893
|
$
|
---
|
$
|
4,065
|
||||||||||
Collectively evaluated for impairment
|
3,744
|
7,947
|
3,153
|
53
|
14,897
|
|||||||||||||||
Total ending allowance balance
|
$
|
6,173
|
$
|
8,690
|
$
|
4,046
|
$
|
53
|
$
|
18,962
|
||||||||||
Loans:
|
||||||||||||||||||||
Individually reviewed for impairment
|
$
|
9,084
|
$
|
29,818
|
$
|
14,495
|
$
|
---
|
$
|
53,397
|
||||||||||
Collectively evaluated for impairment
|
318,590
|
460,713
|
285,783
|
---
|
1,065,086
|
|||||||||||||||
Total ending loans balance
|
$
|
327,674
|
$
|
490,531
|
$
|
300,278
|
$
|
---
|
$
|
1,118,483
|
||||||||||
December 31, 2013
|
Commercial
and
Industrial
|
Commercial Real Estate
|
Consumer
|
Unallocated
|
Total
|
|||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||
Ending allowance attributable to loans:
|
||||||||||||||||||||
Individually reviewed for impairment
|
$
|
1,981
|
$
|
1,008
|
$
|
881
|
$
|
---
|
$
|
3,870
|
||||||||||
Collectively evaluated for impairment
|
4,193
|
9,860
|
2,822
|
53
|
16,928
|
|||||||||||||||
Total ending allowance balance
|
$
|
6,174
|
$
|
10,868
|
$
|
3,703
|
$
|
53
|
$
|
20,798
|
||||||||||
Loans:
|
||||||||||||||||||||
Individually reviewed for impairment
|
$
|
13,155
|
$
|
41,285
|
$
|
14,483
|
$
|
---
|
$
|
68,923
|
||||||||||
Collectively evaluated for impairment
|
260,944
|
431,055
|
281,455
|
---
|
973,454
|
|||||||||||||||
Total ending loans balance
|
$
|
274,099
|
$
|
472,340
|
$
|
295,938
|
$
|
---
|
$
|
1,042,377
|
December 31, 2014
|
Unpaid Principal Balance
|
Recorded Investment
|
Allowance Allocated
|
|||||||||
With no related allowance recorded:
|
||||||||||||
Commercial and industrial
|
$
|
3,019
|
$
|
3,019
|
$
|
---
|
||||||
Commercial real estate:
|
||||||||||||
Residential developed
|
531
|
531
|
---
|
|||||||||
Unsecured to residential developers
|
---
|
---
|
---
|
|||||||||
Vacant and unimproved
|
---
|
---
|
---
|
|||||||||
Commercial development
|
---
|
---
|
---
|
|||||||||
Residential improved
|
547
|
547
|
---
|
|||||||||
Commercial improved
|
331
|
331
|
---
|
|||||||||
Manufacturing and industrial
|
206
|
206
|
---
|
|||||||||
1,615
|
1,615
|
---
|
||||||||||
Consumer:
|
||||||||||||
Residential mortgage
|
---
|
---
|
---
|
|||||||||
Unsecured
|
---
|
---
|
---
|
|||||||||
Home equity
|
---
|
---
|
---
|
|||||||||
Other secured
|
---
|
---
|
---
|
|||||||||
---
|
---
|
---
|
||||||||||
$
|
4,634
|
$
|
4,634
|
$
|
---
|
|||||||
With an allowance recorded:
|
||||||||||||
Commercial and industrial
|
$
|
6,065
|
$
|
6,065
|
$
|
2,429
|
||||||
Commercial real estate:
|
||||||||||||
Residential developed
|
550
|
550
|
35
|
|||||||||
Unsecured to residential developers
|
---
|
---
|
---
|
|||||||||
Vacant and unimproved
|
1,499
|
1,499
|
43
|
|||||||||
Commercial development
|
199
|
199
|
5
|
|||||||||
Residential improved
|
7,323
|
7,323
|
240
|
|||||||||
Commercial improved
|
16,113
|
16,113
|
389
|
|||||||||
Manufacturing and industrial
|
2,519
|
2,519
|
31
|
|||||||||
28,203
|
28,203
|
743
|
||||||||||
Consumer:
|
||||||||||||
Residential mortgage
|
9,492
|
9,484
|
584
|
|||||||||
Unsecured
|
---
|
---
|
---
|
|||||||||
Home equity
|
5,182
|
5,011
|
309
|
|||||||||
Other secured
|
---
|
---
|
---
|
|||||||||
14,674
|
14,495
|
893
|
||||||||||
$
|
48,942
|
$
|
48,763
|
$
|
4,065
|
|||||||
Total
|
$
|
53,576
|
$
|
53,397
|
$
|
4,065
|
December 31, 2013
|
Unpaid Principal Balance
|
Recorded Investment
|
Allowance Allocated
|
|||||||||
With no related allowance recorded:
|
||||||||||||
Commercial and industrial
|
$
|
3,287
|
$
|
3,284
|
$
|
---
|
||||||
Commercial real estate:
|
||||||||||||
Residential developed
|
5,273
|
4,340
|
---
|
|||||||||
Unsecured to residential developers
|
---
|
---
|
---
|
|||||||||
Vacant and unimproved
|
3
|
3
|
---
|
|||||||||
Commercial development
|
362
|
362
|
---
|
|||||||||
Residential improved
|
1,493
|
1,493
|
---
|
|||||||||
Commercial improved
|
2,797
|
2,272
|
---
|
|||||||||
Manufacturing and industrial
|
252
|
252
|
---
|
|||||||||
10,180
|
8,722
|
---
|
||||||||||
Consumer:
|
||||||||||||
Residential mortgage
|
---
|
---
|
---
|
|||||||||
Unsecured
|
---
|
---
|
---
|
|||||||||
Home equity
|
---
|
---
|
---
|
|||||||||
Other secured
|
---
|
---
|
---
|
|||||||||
---
|
---
|
---
|
||||||||||
$
|
13,467
|
$
|
12,006
|
$
|
---
|
|||||||
With an allowance recorded:
|
||||||||||||
Commercial and industrial
|
$
|
9,871
|
$
|
9,871
|
$
|
1,981
|
||||||
Commercial real estate:
|
||||||||||||
Residential developed
|
618
|
618
|
33
|
|||||||||
Unsecured to residential developers
|
---
|
---
|
---
|
|||||||||
Vacant and unimproved
|
1,900
|
1,900
|
47
|
|||||||||
Commercial development
|
207
|
207
|
5
|
|||||||||
Residential improved
|
9,534
|
9,534
|
342
|
|||||||||
Commercial improved
|
14,450
|
14,450
|
479
|
|||||||||
Manufacturing and industrial
|
5,854
|
5,854
|
102
|
|||||||||
32,563
|
32,563
|
1,008
|
||||||||||
Consumer:
|
||||||||||||
Residential mortgage
|
9,454
|
9,454
|
575
|
|||||||||
Unsecured
|
---
|
---
|
---
|
|||||||||
Home equity
|
5,029
|
5,029
|
306
|
|||||||||
Other secured
|
---
|
---
|
---
|
|||||||||
14,483
|
14,483
|
881
|
||||||||||
$
|
56,917
|
$
|
56,917
|
$
|
3,870
|
|||||||
Total
|
$
|
70,384
|
$
|
68,923
|
$
|
3,870
|
2014
|
2013
|
2012
|
||||||||||
Average of impaired loans during the period:
|
||||||||||||
Commercial and industrial
|
$
|
11,818
|
$
|
14,333
|
$
|
14,928
|
||||||
Commercial real estate:
|
||||||||||||
Residential developed
|
3,628
|
6,357
|
8,162
|
|||||||||
Unsecured to residential developers
|
---
|
---
|
---
|
|||||||||
Vacant and unimproved
|
1,646
|
2,804
|
3,851
|
|||||||||
Commercial development
|
451
|
398
|
216
|
|||||||||
Residential improved
|
9,309
|
11,549
|
13,192
|
|||||||||
Commercial improved
|
17,853
|
20,191
|
17,975
|
|||||||||
Manufacturing and industrial
|
5,630
|
6,305
|
9,125
|
|||||||||
Consumer
|
14,476
|
14,532
|
15,857
|
|||||||||
Interest income recognized during impairment:
|
||||||||||||
Commercial and industrial
|
1,108
|
1,278
|
1,291
|
|||||||||
Commercial real estate
|
1,527
|
1,974
|
2,736
|
|||||||||
Consumer
|
541
|
537
|
538
|
|||||||||
Cash-basis interest income recognized
|
||||||||||||
Commercial and industrial
|
1,107
|
1,273
|
1,295
|
|||||||||
Commercial real estate
|
1,547
|
1,971
|
2,740
|
|||||||||
Consumer
|
541
|
532
|
550
|
December 31, 2014
|
Nonaccrual
|
Over 90
days
Accruing
|
||||||
Commercial and industrial
|
$
|
5,605
|
$
|
---
|
||||
Commercial real estate:
|
||||||||
Residential developed
|
245
|
---
|
||||||
Unsecured to residential developers
|
---
|
---
|
||||||
Vacant and unimproved
|
---
|
---
|
||||||
Commercial development
|
29
|
---
|
||||||
Residential improved
|
766
|
---
|
||||||
Commercial improved
|
866
|
117
|
||||||
Manufacturing and industrial
|
---
|
---
|
||||||
1,906
|
117
|
|||||||
Consumer:
|
||||||||
Residential mortgage
|
305
|
---
|
||||||
Unsecured
|
40
|
---
|
||||||
Home equity
|
436
|
17
|
||||||
Other secured
|
---
|
---
|
||||||
781
|
17
|
|||||||
Total
|
$
|
8,292
|
$
|
134
|
December 31, 2013
|
Nonaccrual
|
Over 90
days
Accruing
|
||||||
Commercial and industrial
|
$
|
5,625
|
$
|
---
|
||||
Commercial real estate:
|
||||||||
Residential developed
|
2,590
|
153
|
||||||
Unsecured to residential developers
|
---
|
---
|
||||||
Vacant and unimproved
|
---
|
---
|
||||||
Commercial development
|
23
|
---
|
||||||
Residential improved
|
429
|
---
|
||||||
Commercial improved
|
2,511
|
---
|
||||||
Manufacturing and industrial
|
---
|
---
|
||||||
5,553
|
153
|
|||||||
Consumer:
|
||||||||
Residential mortgage
|
639
|
---
|
||||||
Unsecured
|
33
|
---
|
||||||
Home equity
|
332
|
---
|
||||||
Other secured
|
---
|
---
|
||||||
1,004
|
---
|
|||||||
Total
|
$
|
12,182
|
$
|
153
|
December 31, 2014
|
30-90
Days
|
Greater Than
90 Days
|
Total
Past Due
|
Loans Not
Past Due
|
Total
|
|||||||||||||||
Commercial and industrial
|
$
|
54
|
$
|
---
|
$
|
54
|
$
|
327,620
|
$
|
327,674
|
||||||||||
Commercial real estate:
|
||||||||||||||||||||
Residential developed
|
---
|
---
|
---
|
12,771
|
12,771
|
|||||||||||||||
Unsecured to residential developers
|
---
|
---
|
---
|
7,496
|
7,496
|
|||||||||||||||
Vacant and unimproved
|
100
|
---
|
100
|
50,272
|
50,372
|
|||||||||||||||
Commercial development
|
---
|
29
|
29
|
4,053
|
4,082
|
|||||||||||||||
Residential improved
|
100
|
440
|
540
|
69,072
|
69,612
|
|||||||||||||||
Commercial improved
|
---
|
958
|
958
|
268,799
|
269,757
|
|||||||||||||||
Manufacturing and industrial
|
---
|
---
|
---
|
76,441
|
76,441
|
|||||||||||||||
200
|
1,427
|
1,627
|
488,904
|
490,531
|
||||||||||||||||
Consumer:
|
||||||||||||||||||||
Residential mortgage
|
338
|
303
|
641
|
189,608
|
190,249
|
|||||||||||||||
Unsecured
|
---
|
18
|
18
|
930
|
948
|
|||||||||||||||
Home equity
|
79
|
422
|
501
|
98,386
|
98,887
|
|||||||||||||||
Other secured
|
---
|
---
|
---
|
10,194
|
10,194
|
|||||||||||||||
417
|
743
|
1,160
|
299,118
|
300,278
|
||||||||||||||||
Total
|
$
|
671
|
$
|
2,170
|
$
|
2,841
|
$
|
1,115,642
|
$
|
1,118,483
|
December 31, 2013
|
30-90
Days
|
Greater Than
90 Days
|
Total
Past Due
|
Loans Not
Past Due
|
Total
|
|||||||||||||||
Commercial and industrial
|
$
|
---
|
$
|
---
|
$
|
---
|
$
|
274,099
|
$
|
274,099
|
||||||||||
Commercial real estate:
|
||||||||||||||||||||
Residential developed
|
143
|
2,296
|
2,439
|
15,691
|
18,130
|
|||||||||||||||
Unsecured to residential developers
|
---
|
---
|
---
|
7,315
|
7,315
|
|||||||||||||||
Vacant and unimproved
|
---
|
---
|
---
|
42,988
|
42,988
|
|||||||||||||||
Commercial development
|
---
|
23
|
23
|
2,411
|
2,434
|
|||||||||||||||
Residential improved
|
98
|
50
|
148
|
76,146
|
76,294
|
|||||||||||||||
Commercial improved
|
438
|
2,056
|
2,494
|
244,701
|
247,195
|
|||||||||||||||
Manufacturing and industrial
|
---
|
---
|
---
|
77,984
|
77,984
|
|||||||||||||||
679
|
4,425
|
5,104
|
467,236
|
472,340
|
||||||||||||||||
Consumer:
|
||||||||||||||||||||
Residential mortgage
|
78
|
---
|
78
|
188,570
|
188,648
|
|||||||||||||||
Unsecured
|
9
|
---
|
9
|
1,328
|
1,337
|
|||||||||||||||
Home equity
|
317
|
---
|
317
|
95,644
|
95,961
|
|||||||||||||||
Other secured
|
12
|
---
|
12
|
9,980
|
9,992
|
|||||||||||||||
416
|
---
|
416
|
295,522
|
295,938
|
||||||||||||||||
Total
|
$
|
1,095
|
$
|
4,425
|
$
|
5,520
|
$
|
1,036,857
|
$
|
1,042,377
|
2014
|
2013
|
|||||||||||||||
Number of Loans
|
Outstanding Recorded Balance
|
Number of Loans
|
Outstanding Recorded Balance
|
|||||||||||||
Commercial and industrial
|
36
|
$
|
9,085
|
43
|
$
|
7,787
|
||||||||||
Commercial real estate
|
84
|
29,817
|
122
|
45,774
|
||||||||||||
Consumer
|
106
|
14,495
|
106
|
14,531
|
||||||||||||
226
|
$
|
53,397
|
271
|
$
|
68,092
|
2014
|
2013
|
2012
|
2011
|
|||||||||||||
Accruing TDR - nonaccrual at restructuring
|
$
|
---
|
$
|
---
|
$
|
1,135
|
$
|
605
|
||||||||
Accruing TDR - accruing at restructuring
|
46,197
|
57,790
|
61,545
|
51,532
|
||||||||||||
Accruing TDR - upgraded to accruing after six consecutive payments
|
---
|
---
|
2,344
|
3,542
|
||||||||||||
$
|
46,197
|
$
|
57,790
|
$
|
65,024
|
$
|
55,679
|
2014
|
Number of Loans
|
Pre-Modification
Outstanding
Recorded Balance
|
Principal
Writedown upon
Modification
|
|||||||||
Commercial and industrial
|
1
|
$
|
61
|
$
|
---
|
|||||||
Commercial real estate
|
11
|
4,345
|
---
|
|||||||||
Consumer
|
39
|
1,422
|
---
|
|||||||||
51
|
$
|
5,828
|
$
|
---
|
2013
|
Number of Loans
|
Pre-Modification
Outstanding
Recorded Balance
|
Principal
Writedown upon
Modification
|
|||||||||
Commercial and industrial
|
5
|
$
|
1,085
|
$
|
---
|
|||||||
Commercial real estate
|
13
|
4,298
|
---
|
|||||||||
Consumer
|
36
|
5,833
|
---
|
|||||||||
54
|
$
|
11,216
|
$
|
---
|
2012
|
Number of Loans
|
Pre-Modification
Outstanding
Recorded Balance
|
Principal
Writedown upon
Modification
|
|||||||||
Commercial and industrial
|
16
|
$
|
1,462
|
$
|
9
|
|||||||
Commercial real estate
|
52
|
15,413
|
332
|
|||||||||
Consumer
|
10
|
1,518
|
261
|
|||||||||
78
|
$
|
18,393
|
$
|
602
|
2014
|
2013
|
2012
|
||||||||||||||||||||||
Number of Loans
|
Outstanding Recorded Balance
|
Number of Loans
|
Outstanding Recorded Balance
|
Number of Loans
|
Outstanding Recorded Balance
|
|||||||||||||||||||
Commercial and industrial
|
---
|
$
|
---
|
---
|
$
|
---
|
3
|
$
|
112
|
|||||||||||||||
Commercial real estate
|
1
|
131
|
1
|
1,350
|
2
|
225
|
||||||||||||||||||
Consumer
|
---
|
---
|
---
|
---
|
2
|
184
|
2014
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
||||||||||||||||||||||||
Commercial and industrial
|
$
|
343
|
$
|
11,177
|
$
|
118,382
|
$
|
182,651
|
$
|
8,448
|
$
|
1,068
|
$
|
5,605
|
$
|
---
|
||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||||||
Residential developed
|
---
|
---
|
2,491
|
4,702
|
4,491
|
842
|
245
|
---
|
||||||||||||||||||||||||
Unsecured to residential developers
|
---
|
---
|
---
|
7,496
|
---
|
---
|
---
|
---
|
||||||||||||||||||||||||
Vacant and unimproved
|
---
|
---
|
12,105
|
30,997
|
7,241
|
29
|
---
|
---
|
||||||||||||||||||||||||
Commercial development
|
---
|
---
|
---
|
3,643
|
211
|
199
|
29
|
---
|
||||||||||||||||||||||||
Residential improved
|
---
|
103
|
16,291
|
43,928
|
6,428
|
2,096
|
766
|
---
|
||||||||||||||||||||||||
Commercial improved
|
---
|
4,392
|
61,543
|
178,169
|
20,558
|
4,229
|
866
|
---
|
||||||||||||||||||||||||
Manufacturing and industrial
|
---
|
1,508
|
27,396
|
42,494
|
4,713
|
330
|
---
|
---
|
||||||||||||||||||||||||
$
|
343
|
$
|
17,180
|
$
|
238,208
|
$
|
494,080
|
$
|
52,090
|
$
|
8,793
|
$
|
7,511
|
$
|
---
|
2013
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
||||||||||||||||||||||||
Commercial and industrial
|
$
|
509
|
$
|
15,836
|
$
|
81,577
|
$
|
155,680
|
$
|
13,513
|
$
|
1,359
|
$
|
5,625
|
$
|
---
|
||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||||||
Residential developed
|
---
|
---
|
2,039
|
5,653
|
5,232
|
2,616
|
2,590
|
---
|
||||||||||||||||||||||||
Unsecured to residential developers
|
---
|
---
|
---
|
7,309
|
6
|
---
|
---
|
---
|
||||||||||||||||||||||||
Vacant and unimproved
|
---
|
---
|
11,191
|
24,638
|
6,761
|
398
|
---
|
---
|
||||||||||||||||||||||||
Commercial development
|
---
|
---
|
---
|
1,673
|
532
|
207
|
23
|
---
|
||||||||||||||||||||||||
Residential improved
|
---
|
109
|
15,121
|
45,018
|
9,391
|
6,226
|
429
|
---
|
||||||||||||||||||||||||
Commercial improved
|
---
|
7,382
|
45,391
|
161,897
|
24,937
|
5,075
|
2,511
|
---
|
||||||||||||||||||||||||
Manufacturing and industrial
|
---
|
311
|
24,546
|
42,133
|
10,402
|
593
|
---
|
---
|
||||||||||||||||||||||||
$
|
509
|
$
|
23,638
|
$
|
179,865
|
$
|
444,001
|
$
|
70,774
|
$
|
16,474
|
$
|
11,178
|
$
|
---
|
2014
|
2013
|
|||||||
Not classified as impaired
|
$
|
4,220
|
$
|
7,400
|
||||
Classified as impaired
|
12,084
|
20,252
|
||||||
Total commercial loans classified substandard or worse
|
$
|
16,304
|
$
|
27,652
|
December 31, 2014
|
Residential Mortgage
|
Consumer Unsecured
|
Home
Equity
|
Consumer Other
|
||||||||||||
Performing
|
$
|
189,946
|
$
|
930
|
$
|
98,465
|
$
|
10,194
|
||||||||
Nonperforming
|
303
|
18
|
422
|
---
|
||||||||||||
Total
|
$
|
190,249
|
$
|
948
|
$
|
98,887
|
$
|
10,194
|
December 31, 2013
|
Residential Mortgage
|
Consumer Unsecured
|
Home
Equity
|
Consumer Other
|
||||||||||||
Performing
|
$
|
188,648
|
$
|
1,337
|
$
|
95,961
|
$
|
9,992
|
||||||||
Nonperforming
|
---
|
---
|
---
|
---
|
||||||||||||
Total
|
$
|
188,648
|
$
|
1,337
|
$
|
95,961
|
$
|
9,992
|
2014
|
2013
|
2012
|
||||||||||
Beginning balance
|
$
|
53,501
|
$
|
69,743
|
$
|
83,663
|
||||||
Additions, transfers from loans
|
4,932
|
3,539
|
9,168
|
|||||||||
Proceeds from sales of other real estate owned
|
(12,487
|
)
|
(16,501
|
)
|
(18,729
|
)
|
||||||
Valuation allowance reversal upon sale
|
(3,499
|
)
|
(4,378
|
)
|
(4,300
|
)
|
||||||
Gain (loss) on sale of other real estate owned
|
624
|
1,098
|
(59
|
)
|
||||||||
43,071
|
53,501
|
69,743
|
||||||||||
Less: valuation allowance
|
(14,829
|
)
|
(16,705
|
)
|
(18,161
|
)
|
||||||
Ending balance
|
$
|
28,242
|
$
|
36,796
|
$
|
51,582
|
2014
|
2013
|
2012
|
||||||||||
Beginning balance
|
$
|
16,705
|
$
|
18,161
|
$
|
17,225
|
||||||
Additions charged to expense
|
1,623
|
2,922
|
5,236
|
|||||||||
Reversals upon sale
|
(3,499
|
)
|
(4,378
|
)
|
(4,300
|
)
|
||||||
Ending balance
|
$
|
14,829
|
$
|
16,705
|
$
|
18,161
|
Level 1 : | Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. |
Level 2 : | Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. |
Level 3 : | Significant unobservable inputs that reflect a reporting entity's own assumptions about the assumptions that market participants would use in pricing an asset or liability. |
Fair
Value
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
Significant Other
Observable
Inputs (Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
December 31, 2014
|
||||||||||||||||
U.S. Treasury and federal agency securities
|
$
|
67,164
|
$
|
---
|
$
|
67,164
|
$
|
---
|
||||||||
U.S. Agency MBS and CMOs
|
16,688
|
---
|
16,688
|
---
|
||||||||||||
Tax-exempt state and municipal bonds
|
37,461
|
---
|
37,461
|
---
|
||||||||||||
Taxable state and municipal bonds
|
25,293
|
---
|
25,293
|
---
|
||||||||||||
Corporate bonds and other debt securities
|
13,766
|
---
|
13,766
|
---
|
||||||||||||
Other equity securities
|
1,502
|
---
|
1,502
|
---
|
||||||||||||
Loans held for sale
|
2,347
|
---
|
2,347
|
---
|
||||||||||||
Interest rate swaps
|
140
|
---
|
---
|
140
|
||||||||||||
Interest rate swaps
|
(140
|
)
|
---
|
---
|
(140
|
)
|
||||||||||
December 31, 2013
|
||||||||||||||||
U.S. Treasury and federal agency securities
|
$
|
54,439
|
$
|
---
|
$
|
54,439
|
$
|
---
|
||||||||
U.S. Agency MBS and CMOs
|
19,365
|
---
|
19,365
|
---
|
||||||||||||
Tax-exempt state and municipal bonds
|
26,849
|
---
|
26,849
|
---
|
||||||||||||
Taxable state and municipal bonds
|
26,328
|
---
|
26,328
|
---
|
||||||||||||
Corporate bonds and other debt securities
|
11,212
|
---
|
11,212
|
---
|
||||||||||||
Other equity securities
|
1,466
|
---
|
1,466
|
---
|
||||||||||||
Loans held for sale
|
1,915
|
---
|
1,915
|
---
|
||||||||||||
Interest rate swaps
|
94
|
---
|
---
|
94
|
||||||||||||
Interest rate swaps
|
(94
|
)
|
---
|
---
|
(94
|
)
|
Fair
Value
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
Significant Other
Observable
Inputs (Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
December 31, 2014
|
||||||||||||||||
Impaired loans
|
$
|
12,649
|
$
|
---
|
$
|
---
|
$
|
12,649
|
||||||||
Other real estate owned
|
22,472
|
---
|
---
|
22,472
|
||||||||||||
December 31, 2013
|
||||||||||||||||
Impaired loans
|
$
|
22,403
|
$
|
---
|
$
|
---
|
$
|
22,403
|
||||||||
Other real estate owned
|
29,711
|
---
|
---
|
29,711
|
Asset (Liability) Fair Value
|
Valuation
Technique
|
Unobservable
Inputs
|
Range (%)
|
||||||
December 31, 2014
|
|||||||||
Impaired Loans
|
$
|
12,649
|
Sales comparison approach
|
Adjustment for differences between comparable sales
|
1.0 to 20.0
|
||||
Income approach
|
Capitalization rate
|
9.5 to 12.0
|
|||||||
Other real estate owned
|
22,472
|
Sales comparison approach
|
Adjustment for differences between comparable sales
|
3.0 to 22.7
|
|||||
Income approach
|
Capitalization rate
|
9.5 to 12.0
|
Asset (Liability) Fair Value
|
Valuation
Technique
|
Unobservable
Inputs
|
Range (%)
|
||||||
December 31, 2013
|
|||||||||
Impaired Loans
|
$
|
22,403
|
Sales comparison approach
|
Adjustment for differences between comparable sales
|
2.0 to 23.0
|
||||
Income approach
|
Capitalization rate
|
9.5 to 12.0
|
|||||||
Other real estate owned
|
29,711
|
Sales comparison approach
|
Adjustment for differences between comparable sales
|
1.0 to 17.0
|
|||||
Income approach
|
Capitalization rate
|
9.5 to 12.0
|
Level in
|
2014
|
2013
|
|||||||||||||||
Fair Value
Hierarchy
|
Carrying Amount
|
Fair
Value
|
Carrying Amount
|
Fair
Value
|
|||||||||||||
Financial assets
|
|||||||||||||||||
Cash and due from banks
|
Level 1
|
$
|
31,503
|
$
|
31,503
|
$
|
38,714
|
$
|
38,714
|
||||||||
Cash equivalents
|
Level 2
|
97,952
|
97,952
|
118,178
|
118,178
|
||||||||||||
Interest-bearing time deposits in other financial institutions
|
Level 2
|
20,000
|
20,062
|
25,000
|
25,003
|
||||||||||||
Securities held to maturity
|
Level 3
|
31,585
|
31,428
|
19,248
|
19,278
|
||||||||||||
FHLB stock
|
11,238
|
NA
|
11,236
|
NA
|
|||||||||||||
Loans, net
|
Level 2
|
1,086,872
|
1,082,675
|
999,176
|
990,084
|
||||||||||||
Bank owned life insurance
|
Level 3
|
28,195
|
28,195
|
27,517
|
27,517
|
||||||||||||
Accrued interest receivable
|
Level 2
|
3,399
|
3,399
|
3,231
|
3,231
|
||||||||||||
Financial liabilities
|
|||||||||||||||||
Deposits
|
Level 2
|
(1,306,325
|
)
|
(1,306,671
|
)
|
(1,249,734
|
)
|
(1,250,886
|
)
|
||||||||
Other borrowed funds
|
Level 2
|
(88,107
|
)
|
(89,066
|
)
|
(89,991
|
)
|
(90,321
|
)
|
||||||||
Long-term debt
|
Level 2
|
(41,238
|
)
|
(35,396
|
)
|
(41,238
|
)
|
(35,098
|
)
|
||||||||
Accrued interest payable
|
Level 2
|
(289
|
)
|
(289
|
)
|
(308
|
)
|
(308
|
)
|
||||||||
Off-balance sheet credit-related items
|
|||||||||||||||||
Loan commitments
|
---
|
---
|
---
|
---
|
2014
|
2013
|
|||||||
Land
|
$
|
18,227
|
$
|
18,236
|
||||
Building
|
43,426
|
42,530
|
||||||
Leasehold improvements
|
779
|
779
|
||||||
Furniture and equipment
|
18,368
|
20,344
|
||||||
Construction in progress
|
413
|
1,065
|
||||||
81,213
|
82,954
|
|||||||
Less accumulated depreciation
|
(28,319
|
)
|
(29,313
|
)
|
||||
$
|
52,894
|
$
|
53,641
|
2015
|
$
|
240
|
||
2016
|
230
|
|||
2017
|
230
|
|||
2018
|
230
|
|||
2019
|
230
|
|||
Thereafter
|
127
|
|||
$
|
1,287
|
2014
|
2013
|
|||||||
Noninterest-bearing demand
|
$
|
404,143
|
$
|
344,550
|
||||
Interest bearing demand
|
340,053
|
287,417
|
||||||
Savings and money market accounts
|
442,246
|
469,542
|
||||||
Certificates of deposit
|
119,883
|
148,225
|
||||||
$
|
1,306,325
|
$
|
1,249,734
|
2015
|
$
|
85,486
|
||
2016
|
22,023
|
|||
2017
|
7,016
|
|||
2018
|
2,736
|
|||
2019
|
2,622
|
|||
Thereafter
|
---
|
|||
$
|
119,883
|
Principal Terms
|
Advance Amount
|
Range of Maturities
|
Weighted Average Interest Rate
|
||||||
December 31, 2014
|
|||||||||
Single maturity fixed rate advances
|
$
|
80,000
|
August 2016 to February 2019
|
1.69
|
%
|
||||
Amortizable mortgage advances
|
8,107
|
March 2018 to July 2018
|
3.78
|
%
|
|||||
$
|
88,107
|
Principal Terms
|
Advance Amount
|
Range of Maturities
|
Weighted Average Interest Rate
|
||||||
December 31, 2013
|
|||||||||
Single maturity fixed rate advances
|
$
|
80,000
|
August 2016 to February 2019
|
1.69
|
%
|
||||
Amortizable mortgage advances
|
9,991
|
March 2018 to July 2018
|
3.78
|
%
|
|||||
$
|
89,991
|
2015
|
$
|
1,938
|
||
2016
|
21,996
|
|||
2017
|
2,055
|
|||
2018
|
52,118
|
|||
2019
|
10,000
|
|||
Thereafter
|
---
|
|||
$
|
88,107
|
2014
|
2013
|
|||||||
Beginning balance
|
$
|
3,462
|
$
|
5,645
|
||||
New loans and renewals
|
21,594
|
10,704
|
||||||
Repayments and renewals
|
(14,979
|
)
|
(12,887
|
)
|
||||
Effect of changes in related parties
|
---
|
---
|
||||||
Less accumulated depreciation
|
$
|
10,077
|
$
|
3,462
|
Options
|
Number Outstanding
|
Weighted-Average Exercise Price
|
Weighted- Average Remaining Contractual Life in Years
|
Aggregate Intrinsic Value
|
||||||||||||
Outstanding at January 1, 2014
|
355,328
|
$
|
17.65
|
---
|
---
|
|||||||||||
Forfeited
|
(330
|
)
|
22.77
|
---
|
---
|
|||||||||||
Expired
|
(94,737
|
)
|
15.09
|
---
|
---
|
|||||||||||
Outstanding at December 31, 2014
|
260,261
|
$
|
18.57
|
1.54
|
$
|
---
|
||||||||||
Exerciseable at December 31, 2014
|
260,261
|
$
|
18.57
|
1.54
|
$
|
---
|
2014
|
2013
|
2012
|
||||||||||
Intrinsic value of options exercised
|
$
|
---
|
$
|
---
|
$
|
---
|
||||||
Cash received from option exercises
|
---
|
---
|
---
|
|||||||||
Tax benefit realized from option exercises
|
---
|
---
|
---
|
Nonvested Stock Awards
|
Shares
|
Weighted-
Average
Grant-Date Fair
Value
|
Aggregate Intrinsic
Value
|
|||||||||
Outstanding at January 1, 2014
|
206,171
|
$
|
4.28
|
$
|
1,121,570
|
|||||||
Granted
|
98,500
|
5.12
|
535,840
|
|||||||||
Vested
|
(74,325
|
)
|
4.02
|
404,328
|
||||||||
Forfeited
|
(12,667
|
)
|
3.96
|
68,908
|
||||||||
Outstanding at December 31, 2014
|
217,679
|
$
|
4.77
|
$
|
1,184,174
|
2014
|
2013
|
2012
|
||||||||||
Net income
|
$
|
10,473
|
$
|
9,549
|
$
|
35,490
|
||||||
Effect of induced exchange of preferred stock
|
---
|
(17,575
|
)
|
---
|
||||||||
Net income available to common shares
|
$
|
10,473
|
$
|
(8,026
|
)
|
$
|
35,490
|
|||||
Weighted average shares outstanding, including participating stock awards
-
Basic
|
33,803,030
|
27,161,888
|
27,086,792
|
|||||||||
Dilutive potential common shares:
|
||||||||||||
Stock options
|
---
|
---
|
---
|
|||||||||
Conversion of preferred stock
|
---
|
---
|
---
|
|||||||||
Stock warrants
|
---
|
---
|
---
|
|||||||||
Weighted average shares outstanding
-
Diluted
|
33,803,030
|
27,161,888
|
27,086,792
|
|||||||||
Basic earnings per common share
|
$
|
0.31
|
$
|
(0.29
|
)
|
$
|
1.31
|
|||||
Diluted earnings per common share
|
$
|
0.31
|
$
|
(0.29
|
)
|
$
|
1.31
|
2014
|
2013
|
2012
|
||||||||||
Current
|
$
|
1,724
|
$
|
120
|
$
|
275
|
||||||
Deferred
|
2,849
|
4,150
|
---
|
|||||||||
Valuation allowance - change in estimate
|
---
|
---
|
(18,858
|
)
|
||||||||
$
|
4,573
|
$
|
4,270
|
$
|
(18,583
|
)
|
2014
|
2013
|
2012
|
||||||||||
Statutory rate
|
35
|
%
|
35
|
%
|
35
|
%
|
||||||
Statutory rate applied to income before taxes
|
$
|
5,266
|
$
|
4,837
|
$
|
5,917
|
||||||
Add (deduct)
|
||||||||||||
Change in valuation allowance
|
---
|
---
|
(24,026
|
)
|
||||||||
Tax-exempt interest income
|
(391
|
)
|
(244
|
)
|
(103
|
)
|
||||||
Bank-owned life insurance
|
(237
|
)
|
(250
|
)
|
(297
|
)
|
||||||
Other, net
|
(65
|
)
|
(73
|
)
|
(74
|
)
|
||||||
$
|
4,573
|
$
|
4,270
|
$
|
(18,583
|
)
|
2014
|
2013
|
|||||||
Deferred tax assets
|
||||||||
Allowance for loan losses
|
$
|
6,637
|
$
|
7,279
|
||||
Nonaccrual loan interest
|
935
|
782
|
||||||
Valuation allowance on other real estate owned
|
5,190
|
5,847
|
||||||
Net operating loss carryforward
|
---
|
1,743
|
||||||
Unrealized loss on securities available for sale
|
---
|
1,053
|
||||||
Other
|
1,896
|
1,808
|
||||||
Gross deferred tax assets
|
14,658
|
18,512
|
||||||
Valuation allowance
|
---
|
---
|
||||||
Total net deferred tax assets
|
14,658
|
18,512
|
||||||
Deferred tax liabilities
|
||||||||
Depreciation
|
(1,908
|
)
|
(1,620
|
)
|
||||
Prepaid expenses
|
(21
|
)
|
(308
|
)
|
||||
Unrealized gain on securities available for sale
|
(33
|
)
|
---
|
|||||
Other
|
(431
|
)
|
(384
|
)
|
||||
Gross deferred tax liabilities
|
(2,393
|
)
|
(2,312
|
)
|
||||
Net deferred tax asset
|
$
|
12,265
|
$
|
16,200
|
2014
|
2013
|
|||||||
Commitments to make loans
|
$
|
81,274
|
$
|
87,513
|
||||
Letters of credit
|
11,862
|
10,774
|
||||||
Unused lines of credit
|
389,099
|
313,232
|
Actual
|
Minimum Required
For Capital
Adequacy Purposes
|
To Be Well
Capitalized Under
Prompt Corrective
Action Regulations
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
December 31, 2014
|
||||||||||||||||||||||||
Total capital (to risk weighted assets)
|
||||||||||||||||||||||||
Consolidated
|
$
|
189,353
|
15.6
|
%
|
$
|
97,420
|
8.0
|
%
|
N/A
|
|
N/A
|
|
||||||||||||
Bank
|
186,276
|
15.3
|
97,575
|
8.0
|
$
|
121,969
|
10.0
|
%
|
||||||||||||||||
Tier 1 capital (to risk weighted assets)
|
||||||||||||||||||||||||
Consolidated
|
174,084
|
14.3
|
48,706
|
4.0
|
N/A
|
|
N/A
|
|
||||||||||||||||
Bank
|
170,983
|
14.0
|
48,788
|
4.0
|
73,182
|
6.0
|
||||||||||||||||||
Tier 1 capital (to average assets)
|
||||||||||||||||||||||||
Consolidated
|
174,084
|
11.6
|
59,998
|
4.0
|
N/A
|
|
N/A
|
|
||||||||||||||||
Bank
|
170,983
|
11.4
|
59,923
|
4.0
|
74,904
|
5.0
|
||||||||||||||||||
December 31, 2013
|
||||||||||||||||||||||||
Total capital (to risk weighted assets)
|
||||||||||||||||||||||||
Consolidated
|
$
|
174,433
|
15.7
|
%
|
$
|
88,915
|
8.0
|
%
|
N/A
|
|
N/A
|
|
||||||||||||
Bank
|
171,811
|
15.4
|
88,968
|
8.0
|
$
|
111,210
|
10.0
|
%
|
||||||||||||||||
Tier 1 capital (to risk weighted assets)
|
||||||||||||||||||||||||
Consolidated
|
160,455
|
14.4
|
44,457
|
4.0
|
N/A
|
|
N/A
|
|
||||||||||||||||
Bank
|
157,825
|
14.2
|
44,484
|
4.0
|
66,726
|
6.0
|
||||||||||||||||||
Tier 1 capital (to average assets)
|
||||||||||||||||||||||||
Consolidated
|
160,455
|
10.6
|
60,482
|
4.0
|
N/A
|
|
N/A
|
|
||||||||||||||||
Bank
|
157,825
|
10.5
|
60,407
|
4.0
|
75,509
|
5.0
|
2014
|
2013
|
|||||||
ASSETS
|
||||||||
Cash and cash equivalents
|
$
|
2,544
|
$
|
1,910
|
||||
Investment in Bank subsidiary
|
177,312
|
167,292
|
||||||
Investment in other subsidiaries
|
1,491
|
1,504
|
||||||
Other assets
|
2,599
|
3,272
|
||||||
Total assets
|
$
|
183,946
|
$
|
173,978
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Long-term debt
|
41,238
|
41,238
|
||||||
Other liabilities
|
189
|
218
|
||||||
Total liabilities
|
41,427
|
41,456
|
||||||
Total shareholders' equity
|
142,519
|
132,522
|
||||||
Total liabilities and shareholders' equity
|
$
|
183,946
|
$
|
173,978
|
2014
|
2013
|
2012
|
||||||||||
INCOME
|
||||||||||||
Dividends from subsidiaries
|
$
|
4,139
|
$
|
5,179
|
$
|
---
|
||||||
Other
|
---
|
---
|
---
|
|||||||||
Total income
|
4,139
|
5,179
|
---
|
|||||||||
EXPENSE
|
||||||||||||
Interest expense
|
1,311
|
1,563
|
1,719
|
|||||||||
Other expense
|
611
|
575
|
555
|
|||||||||
Total expense
|
1,922
|
2,138
|
2,274
|
|||||||||
Income (loss) before income tax and equity in undistributed earnings of subsidiaries
|
2,217
|
3,041
|
(2,274
|
)
|
||||||||
Equity in undistributed earnings of subsidiaries
|
7,592
|
5,770
|
35,338
|
|||||||||
Income before income tax
|
9,809
|
8,811
|
33,064
|
|||||||||
Income tax benefit
|
(664
|
)
|
(738
|
)
|
(2,426
|
)
|
||||||
Net income
|
$
|
10,473
|
$
|
9,549
|
$
|
35,490
|
||||||
Net income (loss) available to common shares
|
$
|
10,473
|
$
|
(8,026
|
)
|
$
|
35,490
|
|||||
Comprehensive income
|
$
|
12,489
|
$
|
6,634
|
$
|
36,072
|
2014
|
2013
|
2012
|
||||||||||
Cash flows from operating activities
|
||||||||||||
Net income
|
$
|
10,473
|
$
|
9,549
|
$
|
35,490
|
||||||
Adjustments to reconcile net income to net cash from operating activities:
|
||||||||||||
Equity in undistributed earnings of subsidiaries
|
(7,592
|
)
|
(5,770
|
)
|
(35,338
|
)
|
||||||
Stock compensation expense
|
2
|
---
|
---
|
|||||||||
Change in other assets
|
673
|
(740
|
)
|
(2,424
|
)
|
|||||||
Change in other liabilities
|
(29
|
)
|
(4,487
|
)
|
1,524
|
|||||||
Net cash from operating activities
|
3,527
|
(1,448
|
)
|
(748
|
)
|
|||||||
Cash flows from investing activities
|
||||||||||||
Investment in subsidiaries
|
---
|
---
|
---
|
|||||||||
Net cash from investing activities
|
---
|
---
|
---
|
|||||||||
Cash flows from financing activities
|
||||||||||||
Proceeds from issuance of common stock
|
4
|
---
|
---
|
|||||||||
Cash dividends paid
|
(2,689
|
)
|
---
|
---
|
||||||||
Common stock issuance costs
|
(102
|
)
|
---
|
---
|
||||||||
Redemption of subordinated debt
|
---
|
(1,650
|
)
|
---
|
||||||||
Repurchases of shares
|
(106
|
)
|
(45
|
)
|
---
|
|||||||
Cash paid in preferred stock exchange
|
---
|
(4,734
|
)
|
---
|
||||||||
Net cash from financing activities
|
(2,893
|
)
|
(6,429
|
)
|
---
|
|||||||
Net change in cash and cash equivalents
|
634
|
(7,877
|
)
|
(748
|
)
|
|||||||
Cash and cash equivalents at beginning of year
|
1,910
|
9,787
|
10,535
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
2,544
|
$
|
1,910
|
$
|
9,787
|
||||||
Supplemental noncash disclosures:
|
||||||||||||
Conversion of 300 shares of Preferred Series B to 50,000 shares of common stock
|
$
|
---
|
$
|
300
|
$
|
---
|
||||||
Exchange of 31,290 shares of Preferred Series A to 5,973,519 shares of common stock
|
---
|
30,604
|
---
|
|||||||||
Exchange of 2,300 shares of Preferred Series B to 457,159 shares of common stock
|
---
|
2,260
|
---
|
Earnings (Loss) Per Common Share
|
||||||||||||||||||||||||
Interest Income
|
Net Interest Income
|
Provision for Loan Losses
|
Net Income
|
Basic
|
Diluted
|
|||||||||||||||||||
2014
|
||||||||||||||||||||||||
First quarter
|
$
|
11,970
|
$
|
10,475
|
$
|
(1,000
|
)
|
$
|
2,639
|
$
|
0.08
|
$
|
0.08
|
|||||||||||
Second quarter
|
11,528
|
10,156
|
(1,000
|
)
|
2,755
|
0.08
|
0.08
|
|||||||||||||||||
Third quarter
|
11,674
|
10,304
|
(750
|
)
|
2,762
|
0.08
|
0.08
|
|||||||||||||||||
Fourth quarter
|
11,816
|
10,457
|
(600
|
)
|
2,317
|
0.07
|
0.07
|
|||||||||||||||||
2013
|
||||||||||||||||||||||||
First quarter
|
$
|
12,433
|
$
|
10,483
|
$
|
(750
|
)
|
$
|
2,473
|
$
|
0.09
|
$
|
0.09
|
|||||||||||
Second quarter
|
12,307
|
10,464
|
(1,000
|
)
|
2,603
|
0.10
|
0.10
|
|||||||||||||||||
Third quarter
|
11,919
|
10,124
|
(1,500
|
)
|
2,238
|
0.08
|
0.08
|
|||||||||||||||||
Fourth quarter
|
11,961
|
10,212
|
(1,000
|
)
|
2,234
|
(0.56
|
)
|
(0.56
|
)
|
(a)
|
Evaluation of Disclosure Controls and Procedures.
|
(b)
|
Changes in Internal Controls.
|
(c)
|
Management's Report on Internal Control over Financial Reporting.
|
(d)
|
Report of Independent Registered Public Accounting Firm.
|
ITEM 12:
|
Equity Compensation Plan Information
|
||||||||||||
Plan Category
|
(a)
Number of securities to
be issued upon exercise
of outstanding options,
warrants and
rights
|
(b)
Weighted-average
Exercise price of
outstanding options,
warrants and rights
|
(c)
Number of securities remaining
available for future issuance under
equity compensation plans
(excluding securities reflected in
column (a))
|
|||||||||
Equity compensation plans approved by security holders (1)
|
260,261
|
$
|
18.57
|
404,307
|
||||||||
Equity compensation plans not approved by security holders
|
0
|
N/A
|
0
|
|||||||||
Total
|
260,261
|
$
|
18.57
|
404,307
|
(1) | Consists of the Macatawa Bank Corporation Stock Compensation Plan, the Macatawa Bank Corporation 1998 Directors’ Stock Compensation Plan, the Macatawa Bank Corporation 2006 Stock Compensation Plan and the Macatawa Bank Corporation 2006 Directors’ Stock Compensation Plan. Stock options may no longer be issued under the Macatawa Bank Corporation Stock Compensation Plan or the Macatawa Bank Corporation 1998 Directors’ Stock Compensation Plan. The number of shares reflected in column (c) above with respect to the Macatawa Bank Corporation 2006 Stock Compensation Plan (247,932 shares) and the Macatawa Bank Corporation 2006 Directors’ Stock Compensation Plan (156,375 shares) represents shares that may be issued other than upon the exercise of an option, warrant or right. Each plan contains customary anti-dilution provisions that are applicable in the event of a stock split or certain other changes in capitalization. |
3.1
|
Restated Articles of Incorporation. Previously filed with the Commission on April 28, 2011 in Macatawa Bank Corporation’s Quarterly Report on Form 10-Q, Exhibit 3.1. Here incorporated by reference.
|
Bylaws.
|
|
4.1
|
Restated Articles of Incorporation. Exhibit 3.1 is here incorporated by reference.
|
4.2
|
Bylaws. Exhibit 3.2 is here incorporated by reference.
|
4.3
|
First Amended Settlement and Release and Stock and Warrant Issuance Agreement dated January 30, 2009. Previously filed with the Commission on April 24, 2014 in Macatawa Bank Corporation's Quarterly Report on Form 10-Q, Exhibit 4.3. Here incorporated by reference.
|
4.4
|
Second Amended Settlement and Release and Stock and Warrant Issuance Agreement dated April 30, 2009. Previously filed with the Commission on July 24, 2014 in Macatawa Bank Corporation's Quarterly Report on Form 10-Q, Exhibit 4.4. Here incorporated by reference.
|
4.5
|
Warrant Agreement between Macatawa Bank Corporation and Registrar and Transfer Company dated June 16, 2009. Previously filed with the Commission on July 24, 2014 in Macatawa Bank Corporation's Quarterly Report on Form 10-Q, Exhibit 4.5. Here incorporated by reference.
|
4.6
|
Warrant Agreement Addendum between Macatawa Bank Corporation and Registrar and Transfer Company dated July 27, 2009. Previously filed with the Commission on July 24, 2014 in Macatawa Bank Corporation's Quarterly Report on Form 10-Q, Exhibit 4.6. Here incorporated by reference.
|
4.7
|
Form of Warrant Certificate (first series). Previously filed with the Commission on July 24, 2014 in Macatawa Bank Corporation's Quarterly Report on Form 10-Q, Exhibit 4.7. Here incorporated by reference.
|
4.8
|
Form of Warrant Certificate (second series). Previously filed with the Commission on July 24, 2014 in Macatawa Bank Corporation's Quarterly Report on Form 10-Q, Exhibit 4.8. Here incorporated by reference.
|
4.9
|
Long-Term Debt. The registrant has outstanding long-term debt which at the time of this report does not exceed 10% of the registrant's total consolidated assets. The registrant agrees to furnish copies of the agreements defining the rights of holders of such long-term debt to the SEC upon request.
|
MACATAWA BANK CORPORATION
|
|
/s/ Ronald L. Haan
|
|
Ronald L. Haan
Chief Executive Officer
(Principal Executive Officer)
|
|
/s/ Jon W. Swets
|
|
Jon W. Swets
Senior Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)
|
Signature
|
||
*/s/ Richard L. Postma
|
February 19, 2015
|
|
Richard L. Postma, Chairman of the Board
|
||
/s/ Ronald L. Haan
|
February 19, 2015
|
|
Ronald L. Haan, Chief Executive Officer
|
||
/s/ Jon W. Swets
|
February 19, 2015
|
|
Jon W. Swets, Senior Vice President and Chief Financial Officer
|
||
*/s/ Mark J. Bugge
|
February 19, 2015
|
|
Mark J. Bugge, Director
|
||
*/s/ Arend D. Lubbers
|
February 19, 2015
|
|
Arend D. Lubbers, Director
|
||
*/s/ Thomas J. Wesholski
|
February 19, 2015
|
|
Thomas J. Wesholski, Director
|
||
*/s/ Douglas B. Padnos
|
February 19, 2015
|
|
Douglas B. Padnos, Director
|
||
*/s/ Wayne J. Elhart
|
February 19, 2015
|
|
Wayne J. Elhart, Director
|
||
*/s/ Charles A. Geenen
|
February 19, 2015
|
|
Charles A. Geenen, Director
|
||
*/s/ Birgit M. Klohs
|
February 19, 2015
|
|
Birgit M. Klohs, Director
|
||
*/s/ Robert L. Herr
|
February 19, 2015
|
|
Robert L. Herr, Director
|
||
*/s/ Thomas P. Rosenbach
|
February 19, 2015
|
|
Thomas P. Rosenbach, Director
|
*By:
|
/s/ Jon W. Swets
|
|
|
|
Jon W. Swets
|
|
|
|
Attorney-in-Fact
|
|
|
COMPANY:
Macatawa Bank Corporation
|
INVESTOR:
White Bay Capital, LLC
|
|||
By:
|
/s/ Philip J. Koning
|
By:
|
/s/ Mark Bugge
|
|
Philip J. Koning
|
Mark Bugge
|
|||
Its President
|
Attorney in Fact for the Managing Member
|
Macatawa Bank Corporation
|
|
Holland, Michigan
|
|
/s/ BDO USA, LLP | |
Grand Rapids, Michigan
|
|
February 19, 2015
|
|
Dated: January 28, 2015
|
/s/ Richard L. Postma
|
|
(signature)
|
|
|
|
Richard L. Postma
|
|
(type or print name)
|
Dated: February 4, 2015
|
/s/ Ronald L. Haan
|
|
(signature)
|
|
|
|
Ronald L. Haan
|
|
(type or print name)
|
Dated: January 29, 2015
|
/s/ Mark J. Bugge
|
|
(signature)
|
|
|
|
Mark J. Bugge
|
|
(type or print name)
|
Dated: February 19, 2015
|
/s/ Arend D. Lubbers
|
|
(signature)
|
|
|
|
Arend D. Lubbers
|
|
(type or print name)
|
Dated: January 28, 2015
|
/s/ Thomas J. Wesholski
|
|
(signature)
|
|
|
|
Thomas J. Wesholski
|
|
(type or print name)
|
Dated: February 6, 2015
|
/s/ Douglas B. Padnos
|
|
(signature)
|
|
|
|
Douglas B. Padnos
|
|
(type or print name)
|
Dated: January 20, 2015
|
/s/ Wayne J. Elhart
|
|
(signature)
|
|
|
|
Wayne J. Elhart
|
|
(type or print name)
|
Dated: January 28, 2015
|
/s/ Charles A. Geenen
|
|
(signature)
|
|
|
|
Charles A. Geenen
|
(type or print name)
|
Dated: January 30, 2015
|
/s/ Birgit M. Klohs
|
|
(signature)
|
|
|
|
Birgit M. Klohs
|
(type or print name)
|
Dated: February 2, 2015
|
/s/ Robert L. Herr
|
|
(signature)
|
|
|
|
Robert L. Herr
|
(type or print name)
|
Dated: February 11, 2015
|
/s/ Thomas P. Rosenbach
|
|
(signature)
|
|
|
|
Thomas P. Rosenbach
|
(type or print name)
|
1. | I have reviewed this annual report on Form 10-K of Macatawa Bank Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d‑15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Ronald L. Haans
|
|
Ronald L. Haan
|
|
Chief Executive Officer
|
4. | I have reviewed this annual report on Form 10-K of Macatawa Bank Corporation; |
5. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
6. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d‑15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Jon W. Swets
|
|
Jon W. Swets
|
|
Senior Vice President and
|
|
Chief Financial Officer
|
|
(Principal Financial and Accounting Officer)
|
/s/ Ronald L. Haan
|
|
Ronald L. Haan
|
|
Chief Executive Officer
|
|
(Principal Executive Officer)
|
|
/s/ Jon W. Swets
|
|
Jon W. Swets
|
|
Senior Vice President and
|
|
Chief Financial Officer
|
|
(Principal Financial and Accounting Officer)
|
|
Dated: February 19, 2015
|