New Jersey
|
|
22-3665653
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(State or Other Jurisdiction of
Incorporation or Organization)
|
|
(IRS Employer Identification Number)
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2650 Route 130
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P.O. Box 634
|
Cranbury
|
New Jersey
|
08512
|
(Address of Principal Executive Offices)
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(Zip Code)
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(Registrant’s telephone number, including area code)
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(609)
|
655-4500
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Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common stock, no par value
|
FCCY
|
NASDAQ Global Market
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☒
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☒
|
|
|
Emerging growth company
|
☐
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FORM 10-K
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TABLE OF CONTENTS
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PART I
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PART II
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PART III
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PART IV
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Item 16.
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Form 10-K Summary
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||
•
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total off-balance sheet exposures (excluding derivatives other than credit derivatives and unconditionally cancelable commitments) of 25% or less of total consolidated assets; and
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•
|
allows bank holding companies meeting management, capital and Community Reinvestment Act standards to engage in a substantially broader range of non-banking activities, including insurance underwriting and making merchant banking investments in commercial and financial companies; if a bank holding company elects to become a financial holding company, it files a certification, effective in 30 days, and thereafter may engage in certain financial activities without further approvals;
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•
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allows banks to establish subsidiaries to engage in certain activities that a financial holding company could engage in, provided that the bank meets certain management, capital and Community Reinvestment Act standards; and
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•
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allows insurers and other financial services companies to acquire banks and removes various restrictions applicable to bank holding company ownership of securities firms and mutual fund advisory companies; and establishes the overall regulatory structure applicable to financial holding companies that also engage in insurance and securities operations.
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•
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a prohibition on personal loans made or arranged by the issuer to its directors and executive officers (except for loans made by a bank subject to Regulation O of the Federal Reserve Board);
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•
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independence requirements for audit committee members;
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•
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disclosure of whether at least one member of the audit committee is a "financial expert" (as such term is defined by the SEC and if not, why not;
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•
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independence requirements for outside auditors;
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•
|
a prohibition on a company’s registered public accounting firm from performing statutorily mandated audit services for the company if the company’s chief executive officer, chief financial officer, comptroller, chief accounting officer or any person serving in equivalent positions had been employed by such firm and participated in the audit of such company during the one-year period preceding the audit initiation date;
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•
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certification of financial statements and annual and quarterly reports by the principal executive officer and the principal financial officer;
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•
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the forfeiture of bonuses or other incentive-based compensation and profits from the sale of an issuer’s securities by directors and senior officers in the twelve month period following initial publication of any financial statements that later require restatement due to corporate misconduct;
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•
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disclosure of off-balance sheet transactions;
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•
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two-business day filing requirements for insiders filing Forms 4;
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•
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disclosure of a code of ethics for financial officers and filing a Form 8-K for a change or waiver of such code;
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•
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"real time" filing of periodic reports;
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•
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posting of certain SEC filings and other information on the company’s website;
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•
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the reporting of securities violations "up the ladder" by both in-house and outside attorneys;
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•
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restrictions on the use of non-GAAP financial measures;
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•
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the formation of a public accounting oversight board; and
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•
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various increased criminal penalties for violations of securities laws.
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•
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delaying, deferring, or preventing a change in control;
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•
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entrenching our management and/or the board of directors;
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•
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impeding a merger, consolidation, takeover, or other business combination involving us; or
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•
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discouraging a potential acquirer from making a tender offer or otherwise attempting to obtain control of us.
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•
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quarterly fluctuations in our operating and financial results;
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•
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operating results that vary from the expectations of management, securities analysts and investors;
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•
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changes in expectations as to our future financial performance, including financial estimates by securities analysts and investors;
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•
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events negatively impacting the financial services industry which result in a general decline in the market valuation of our common stock;
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•
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announcements of material developments affecting our operations or our dividend policy;
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•
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future sales of our equity securities;
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•
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new laws or regulations or new interpretations of existing laws or regulations applicable to our business;
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•
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changes in accounting standards, policies, guidance, interpretations or principles; and
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•
|
general domestic economic and market conditions.
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Location
|
|
Leased or
Owned |
|
Original Year Leased or Acquired
|
|
Year of Lease
Expiration |
Main Office
|
|
|
|
|
|
|
2650 Route 130
Cranbury, New Jersey |
|
Leased
|
|
1989
|
|
2027
|
Village Office
|
|
|
|
|
|
|
74 North Main Street
Cranbury, New Jersey |
|
Owned
|
|
2005
|
|
—
|
Plainsboro Office
|
|
|
|
|
|
|
Plainsboro Village Center
11 Shalks Crossing Road
Plainsboro, New Jersey
|
|
Leased
|
|
1998
|
|
2021
|
Hamilton Square Office
|
|
|
|
|
|
|
3659 Nottingham Way
Hamilton, New Jersey
|
|
Leased
|
|
1999
|
|
2024
|
Princeton Office
|
|
|
|
|
|
|
The Windrows at Princeton Forrestal
2000 Windrow Drive
Princeton, New Jersey
|
|
Leased
|
|
2001
|
|
2020
|
Perth Amboy Office
|
|
|
|
|
|
|
145 Fayette Street
Perth Amboy, New Jersey
|
|
Leased
|
|
2003
|
|
2026
|
Jamesburg Office
|
|
|
|
|
|
|
1 Harrison Street
Jamesburg, New Jersey
|
|
Owned
|
|
2002
|
|
—
|
Fort Lee Office
|
|
|
|
|
|
|
180 Main Street
Fort Lee, New Jersey
|
|
Leased
|
|
2006
|
|
2024
|
Hightstown Office
|
|
|
|
|
|
|
140 Mercer Street
Hightstown, New Jersey
|
|
Leased
|
|
2007
|
|
2024
|
Lawrenceville Property
|
|
|
|
|
|
|
150 Lawrenceville-Pennington Road
Lawrenceville, New Jersey
|
|
Owned
|
|
2009
|
|
—
|
South River Operations Center
|
|
|
|
|
|
|
1246 South River Road, Bldg. 2
Cranbury, New Jersey
|
|
Leased
|
|
2010
|
|
2025
|
Rocky Hill Office
|
|
|
|
|
|
|
995 Route 518
Skillman, New Jersey
|
|
Owned
|
|
2011
|
|
—
|
Hopewell Office
|
|
|
|
|
|
|
86 East Broad Street
Hopewell, New Jersey
|
|
Owned
|
|
2011
|
|
—
|
Hillsborough Office
|
|
|
|
|
|
|
32 New Amwell Road
Hillsborough, New Jersey
|
|
Owned
|
|
2011
|
|
—
|
Rumson Office
|
|
|
|
|
|
|
20 Bingham Avenue
Rumson, New Jersey |
|
Leased
|
|
2014
|
|
2026
|
Location
|
|
Leased or
Owned |
|
Original Year Leased or Acquired
|
|
Year of Lease
Expiration |
Fair Haven Office
|
|
|
|
|
|
|
636 River Road
Fair Haven, New Jersey |
|
Leased
|
|
2014
|
|
2022
|
Asbury Park Office
|
|
|
|
|
|
|
511 Cookman Avenue
Asbury Park, New Jersey |
|
Owned
|
|
2014
|
|
—
|
Shrewsbury Office
|
|
|
|
|
|
|
500 Broad Street
Shrewsbury, New Jersey |
|
Leased
|
|
2014
|
|
2031
|
Little Silver Office
|
|
|
|
|
|
|
517 Prospect Avenue
Little Silver, New Jersey
|
|
Leased
|
|
2015
|
|
2024
|
Freehold Office
|
|
|
|
|
|
|
3441 US Highway 9
Freehold, New Jersey
|
|
Leased
|
|
2018
|
|
2022
|
Neptune City Office
|
|
|
|
|
|
|
118 3rd Avenue
Neptune City, New Jersey
|
|
Leased
|
|
2018
|
|
2022
|
Long Branch
|
|
|
|
|
|
|
444 Ocean Boulevard North
Long Branch, New Jersey
|
|
Leased
|
|
2019
|
|
2024
|
Route 37
|
|
|
|
|
|
|
1216 Route 37 East
Toms River, New Jersey
|
|
Leased
|
|
2019
|
|
2024
|
Hooper Avenue
|
|
|
|
|
|
|
1012 Hooper Avenue
Toms River, New Jersey
|
|
Owned
|
|
2019
|
|
—
|
Downtown
|
|
|
|
|
|
|
201 Main Street
Toms River, New Jersey
|
|
Leased
|
|
2019
|
|
2020(1)
|
Jackson
|
|
|
|
|
|
|
1130 East Veterans Highway
Jackson, New Jersey
|
|
Leased
|
|
2019
|
|
2026
|
Manahawkin
|
|
|
|
|
|
|
280 Route 72 East
Manahawkin, New Jersey
|
|
Leased
|
|
2019
|
|
2023
|
|
|
|
Period Ending
|
|
|
|||||||
Index
|
12/31/2014
|
|
12/31/2015
|
|
12/31/2016
|
|
12/31/2017
|
|
12/31/2018
|
|
12/31/2019
|
|
1st Constitution Bancorp
|
100.00
|
|
124.09
|
|
190.54
|
|
188.14
|
|
207.44
|
|
234.13
|
|
SNL US Bank & Thrift
|
100.00
|
|
102.02
|
|
128.8
|
|
151.45
|
|
125.81
|
|
170.04
|
|
SNL US Bank $500M-$1B
|
100.00
|
|
112.87
|
|
152.4
|
|
185.93
|
|
179.45
|
|
231.13
|
|
SNL US Bank $1B-$5B
|
100.00
|
|
111.94
|
|
161.04
|
|
171.69
|
|
150.42
|
|
182.85
|
|
Period
|
|
Total
Number of
Shares
Purchased
|
|
Average
Price Paid
Per Share
|
|
Total Number
of Shares
Purchased As Part of
Publicly Announced
Program
|
|
Maximum
Number of
Shares That
May Yet be
Purchased Under the Program
|
||||||
Beginning
|
Ending
|
|
|
|
|
|
|
|
|
|||||
October 1, 2019
|
October 31, 2019
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
394,141
|
|
November 1, 2019
|
November 30, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
394,141
|
|
|
December 1, 2019
|
December 31, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
394,141
|
|
|
Total
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
394,141
|
|
|
|
As of and for the years ended December 31,
|
||||||||||||||||||
(In thousands, except per share data)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Summary earnings:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income
|
|
$
|
60,090
|
|
|
$
|
51,473
|
|
|
$
|
41,663
|
|
|
$
|
39,135
|
|
|
$
|
39,323
|
|
Interest expense
|
|
12,754
|
|
|
8,041
|
|
|
5,498
|
|
|
5,158
|
|
|
4,636
|
|
|||||
Net interest income
|
|
47,336
|
|
|
43,432
|
|
|
36,165
|
|
|
33,977
|
|
|
34,687
|
|
|||||
Provision (credit) for loan losses
|
|
1,350
|
|
|
900
|
|
|
600
|
|
|
(300
|
)
|
|
1,100
|
|
|||||
Net interest income after provision (credit) for loan losses
|
|
45,986
|
|
|
42,532
|
|
|
35,565
|
|
|
34,277
|
|
|
33,587
|
|
|||||
Non-interest income
|
|
8,237
|
|
|
7,918
|
|
|
8,240
|
|
|
6,922
|
|
|
6,586
|
|
|||||
Non-interest expense
|
|
35,549
|
|
|
34,085
|
|
|
31,006
|
|
|
27,291
|
|
|
27,447
|
|
|||||
Income before income tax expense
|
|
18,674
|
|
|
16,365
|
|
|
12,799
|
|
|
13,908
|
|
|
12,726
|
|
|||||
Income tax expense
|
|
5,040
|
|
|
4,317
|
|
|
5,871
|
|
|
4,623
|
|
|
4,062
|
|
|||||
Net income
|
|
$
|
13,634
|
|
|
$
|
12,048
|
|
|
6,928
|
|
|
$
|
9,285
|
|
|
$
|
8,664
|
|
|
Per share data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per share - basic
|
|
$
|
1.54
|
|
|
$
|
1.45
|
|
|
$
|
0.86
|
|
|
$
|
1.17
|
|
|
$
|
1.10
|
|
Earnings per share - diluted
|
|
1.53
|
|
|
1.40
|
|
|
0.83
|
|
|
1.14
|
|
|
1.07
|
|
|||||
Cash dividends declared
|
|
0.30
|
|
|
0.26
|
|
|
0.16
|
|
|
0.10
|
|
|
—
|
|
|||||
Book value end-of-period (1)
|
|
16.74
|
|
|
14.77
|
|
|
13.81
|
|
|
13.11
|
|
|
12.72
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic weighted average shares outstanding
|
|
8,875,237
|
|
|
8,320,718
|
|
|
8,049,981
|
|
|
7,962,121
|
|
|
7,901,278
|
|
|||||
Common stock equivalents (dilutive)
|
|
58,234
|
|
|
272,791
|
|
|
262,803
|
|
|
215,318
|
|
|
174,474
|
|
|||||
Fully diluted weighted average shares outstanding
|
|
8,933,471
|
|
|
8,593,509
|
|
|
8,312,784
|
|
|
8,177,439
|
|
|
8,075,752
|
|
|||||
Balance sheet data (at period end):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
|
$
|
1,586,262
|
|
|
$
|
1,177,833
|
|
|
$
|
1,079,274
|
|
|
$
|
1,038,213
|
|
|
$
|
967,991
|
|
Securities, available for sale
|
|
155,782
|
|
|
132,222
|
|
|
105,458
|
|
|
103,794
|
|
|
91,422
|
|
|||||
Investment securities
|
|
76,620
|
|
|
79,572
|
|
|
110,267
|
|
|
126,810
|
|
|
123,261
|
|
|||||
Total loans
|
|
1,216,028
|
|
|
883,164
|
|
|
789,906
|
|
|
724,808
|
|
|
682,121
|
|
|||||
Allowance for loan losses
|
|
(9,271
|
)
|
|
(8,402
|
)
|
|
(8,013
|
)
|
|
(7,494
|
)
|
|
(7,560
|
)
|
|||||
Total deposits
|
|
1,277,362
|
|
|
950,672
|
|
|
922,006
|
|
|
834,516
|
|
|
786,757
|
|
|||||
Shareholders' equity
|
|
170,578
|
|
|
127,085
|
|
|
111,653
|
|
|
104,801
|
|
|
95,960
|
|
|||||
Common cash dividends
|
|
2,593
|
|
|
2,120
|
|
|
1,289
|
|
|
800
|
|
|
—
|
|
|||||
Selected performance ratios:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average total assets
|
|
1.06
|
%
|
|
1.06
|
%
|
|
0.67
|
%
|
|
0.93
|
%
|
|
0.89
|
%
|
|||||
Return on average shareholders' equity
|
|
9.87
|
%
|
|
10.11
|
%
|
|
6.36
|
%
|
|
9.21
|
%
|
|
9.49
|
%
|
|||||
Dividend payout ratio (2)
|
|
19.02
|
%
|
|
17.60
|
%
|
|
18.61
|
%
|
|
8.62
|
%
|
|
n/a
|
|
|||||
Net interest margin
|
|
4.00
|
%
|
|
4.09
|
%
|
|
3.81
|
%
|
|
3.70
|
%
|
|
3.90
|
%
|
|||||
Non-interest income to average assets
|
|
0.64
|
%
|
|
0.70
|
%
|
|
0.80
|
%
|
|
0.69
|
%
|
|
0.67
|
%
|
|||||
Non-interest expenses to average assets
|
|
2.77
|
%
|
|
3.00
|
%
|
|
3.01
|
%
|
|
2.72
|
%
|
|
2.81
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonperforming loans to total loans
|
|
0.37
|
%
|
|
0.75
|
%
|
|
0.90
|
%
|
|
0.72
|
%
|
|
0.88
|
%
|
|||||
Nonperforming assets to total assets
|
|
0.32
|
%
|
|
0.77
|
%
|
|
0.66
|
%
|
|
0.52
|
%
|
|
0.72
|
%
|
|||||
Allowance for loan losses to nonperforming loans
|
|
206.16
|
%
|
|
127.69
|
%
|
|
112.64
|
%
|
|
144.17
|
%
|
|
125.59
|
%
|
|||||
Allowance for loan losses to total loans
|
|
0.76
|
%
|
|
0.95
|
%
|
|
1.01
|
%
|
|
1.03
|
%
|
|
1.11
|
%
|
|||||
Net recoveries (charge-offs) to average loans
|
|
(0.05
|
)%
|
|
(0.06
|
)%
|
|
(0.01
|
)%
|
|
0.03
|
%
|
|
(0.07
|
)%
|
|
|
As of and for the years ended December 31,
|
|||||||||||||
(In thousands, except per share data)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||
Liquidity and capital ratios:
|
|
|
|
|
|
|
|
|
|
|
|||||
Average loans to average deposits
|
|
90.64
|
%
|
|
87.28
|
%
|
|
81.80
|
%
|
|
84.58
|
%
|
|
83.39
|
%
|
Total shareholders' equity to total assets
|
|
10.75
|
%
|
|
10.79
|
%
|
|
10.35
|
%
|
|
10.09
|
%
|
|
9.91
|
%
|
Total capital to risk-weighted assets
|
|
11.71
|
%
|
|
13.17
|
%
|
|
12.84
|
%
|
|
13.24
|
%
|
|
13.08
|
%
|
Tier 1 capital to risk-weighted assets
|
|
11.03
|
%
|
|
12.39
|
%
|
|
12.02
|
%
|
|
12.41
|
%
|
|
12.18
|
%
|
Common equity tier 1 capital ratio to risk-weighted assets
|
|
9.72
|
%
|
|
10.72
|
%
|
|
10.19
|
%
|
|
10.40
|
%
|
|
10.03
|
%
|
Tier 1 leverage ratio
|
|
10.55
|
%
|
|
11.73
|
%
|
|
11.23
|
%
|
|
10.93
|
%
|
|
10.80
|
%
|
|
|
|
|
|
Change in
|
|||||||||
(Dollars in thousands)
|
2019
|
|
2018
|
|
$
|
|
%
|
|||||||
Net interest income
|
$
|
47,336
|
|
|
$
|
43,432
|
|
|
$
|
3,904
|
|
|
9.0
|
%
|
Provision for loan losses
|
1,350
|
|
|
900
|
|
|
450
|
|
|
50.0
|
%
|
|||
Non-interest income
|
8,237
|
|
|
7,918
|
|
|
319
|
|
|
4.0
|
%
|
|||
Non-interest expense
|
35,549
|
|
|
34,085
|
|
|
1,464
|
|
|
4.3
|
%
|
|||
Net income before income taxes
|
18,674
|
|
|
16,365
|
|
|
2,309
|
|
|
14.1
|
%
|
|||
Income taxes
|
5,040
|
|
|
4,317
|
|
|
723
|
|
|
16.7
|
%
|
|||
Net income
|
13,634
|
|
|
12,048
|
|
|
1,586
|
|
|
13.2
|
%
|
|||
Adjustments:
|
|
|
|
|
|
|
|
|||||||
Revaluation of deferred tax assets
|
—
|
|
|
(28
|
)
|
|
28
|
|
|
N.M.
|
|
|||
Merger-related expenses
|
1,730
|
|
|
2,141
|
|
|
(411
|
)
|
|
(19.2
|
)%
|
|||
Gain from bargain purchase
|
—
|
|
|
(230
|
)
|
|
230
|
|
|
N.M.
|
|
|||
Income tax effect of adjustments
|
(394
|
)
|
|
(568
|
)
|
|
174
|
|
|
(30.6
|
)%
|
|||
Total adjustments
|
1,336
|
|
|
1,315
|
|
|
21
|
|
|
1.60
|
%
|
|||
Adjusted net income
|
$
|
14,970
|
|
|
$
|
13,363
|
|
|
$
|
1,607
|
|
|
12.0
|
%
|
|
|
|
|
|
|
|
|
|||||||
Earnings per common share:
|
|
|
|
|
|
|
|
|||||||
Basic, as reported
|
$
|
1.54
|
|
|
$
|
1.45
|
|
|
$
|
0.09
|
|
|
6.2
|
%
|
Adjustments
|
0.15
|
|
|
0.16
|
|
|
(0.01
|
)
|
|
(6.3
|
)%
|
|||
Basic, as adjusted
|
$
|
1.69
|
|
|
$
|
1.61
|
|
|
$
|
0.08
|
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|||||||
Diluted, as reported
|
$
|
1.53
|
|
|
1.40
|
|
|
$
|
0.13
|
|
|
9.3
|
%
|
|
Adjustments
|
0.15
|
|
|
0.16
|
|
|
(0.01
|
)
|
|
(6.3
|
)%
|
|||
Diluted, as adjusted
|
$
|
1.68
|
|
|
$
|
1.56
|
|
|
$
|
0.12
|
|
|
7.7
|
%
|
|
|
|
|
|
|
|
|
|||||||
Return on average total assets:
|
|
|
|
|
|
|
|
|||||||
As reported
|
1.06
|
%
|
|
1.06
|
%
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|||||||
Adjusted net income
|
$
|
14,970
|
|
|
$
|
13,363
|
|
|
|
|
|
|||
Average assets
|
1,283,302
|
|
|
1,137,768
|
|
|
|
|
|
|||||
As adjusted
|
1.17
|
%
|
|
1.17
|
%
|
|
|
|
|
|||||
Return on average shareholders' equity:
|
|
|
|
|
|
|
|
|||||||
As reported
|
9.87
|
%
|
|
10.11
|
%
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|||||||
Adjusted net income
|
$
|
14,970
|
|
|
$
|
13,363
|
|
|
|
|
|
|||
Average shareholders' equity
|
138,101
|
|
|
119,212
|
|
|
|
|
|
|||||
As adjusted
|
10.84
|
%
|
|
11.21
|
%
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in
|
|||||||||
(Dollars in thousands)
|
2018
|
|
2017
|
|
$
|
|
%
|
|||||||
Net interest income
|
$
|
43,432
|
|
|
$
|
36,165
|
|
|
$
|
7,267
|
|
|
20.1
|
%
|
Provision (credit) for loan losses
|
900
|
|
|
600
|
|
|
300
|
|
|
50.0
|
|
|||
Non-interest income
|
7,918
|
|
|
8,240
|
|
|
(322
|
)
|
|
(3.9
|
)
|
|||
Non-interest expense
|
34,085
|
|
|
31,006
|
|
|
3,079
|
|
|
9.9
|
|
|||
Net income before income taxes
|
16,365
|
|
|
12,799
|
|
|
3,566
|
|
|
27.9
|
|
|||
Income taxes
|
4,317
|
|
|
5,871
|
|
|
(1,554
|
)
|
|
(26.5
|
)
|
|||
Net income
|
12,048
|
|
|
6,928
|
|
|
5,120
|
|
|
73.9
|
%
|
|||
Adjustments:
|
|
|
|
|
|
|
|
|||||||
Revaluation of deferred tax assets
|
(28
|
)
|
|
1,712
|
|
|
(1,740
|
)
|
|
N.M.
|
|
|||
Merger-related expenses
|
2,141
|
|
|
265
|
|
|
1,876
|
|
|
N.M.
|
|
|||
Gain from bargain purchase
|
(230
|
)
|
|
—
|
|
|
(230
|
)
|
|
|
||||
Income tax effect of adjustments
|
(568
|
)
|
|
(77
|
)
|
|
(491
|
)
|
|
N.M.
|
|
|||
Total adjustments
|
1,315
|
|
|
1,900
|
|
|
(585
|
)
|
|
N.M.
|
|
|||
Adjusted net income
|
$
|
13,363
|
|
|
$
|
8,828
|
|
|
$
|
4,535
|
|
|
51.4
|
%
|
|
|
|
|
|
|
|
|
|||||||
Earnings per common share:
|
|
|
|
|
|
|
|
|||||||
Basic, as reported
|
$
|
1.45
|
|
|
$
|
0.86
|
|
|
$
|
0.59
|
|
|
68.6
|
%
|
Adjustments
|
0.16
|
|
|
0.24
|
|
|
(0.08
|
)
|
|
N.M.
|
|
|||
Basic, as adjusted
|
$
|
1.61
|
|
|
$
|
1.10
|
|
|
$
|
0.51
|
|
|
46.4
|
%
|
|
|
|
|
|
|
|
|
|||||||
Diluted, as reported
|
$
|
1.40
|
|
|
0.83
|
|
|
$
|
0.57
|
|
|
68.7
|
%
|
|
Adjustments
|
0.16
|
|
|
0.23
|
|
|
(0.07
|
)
|
|
N.M.
|
|
|||
Diluted, as adjusted
|
$
|
1.56
|
|
|
$
|
1.06
|
|
|
$
|
0.50
|
|
|
47.2
|
%
|
|
|
|
|
|
|
|
|
|||||||
Return on average total assets:
|
|
|
|
|
|
|
|
|||||||
As reported
|
1.06
|
%
|
|
0.67
|
%
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|||||||
Adjusted net income
|
$
|
13,363
|
|
|
$
|
8,828
|
|
|
|
|
|
|||
Average assets
|
1,137,768
|
|
|
1,031,796
|
|
|
|
|
|
|||||
As adjusted
|
1.17
|
%
|
|
0.86
|
%
|
|
|
|
|
|||||
Return on average shareholders' equity:
|
|
|
|
|
|
|
|
|||||||
As reported
|
10.11
|
%
|
|
6.36
|
%
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|||||||
Adjusted net income
|
$
|
13,363
|
|
|
$
|
8,828
|
|
|
|
|
|
|||
Average shareholders' equity
|
119,212
|
|
|
108,925
|
|
|
|
|
|
|||||
As adjusted
|
11.21
|
%
|
|
8.10
|
%
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
Years ended December 31,
|
||||||||||
(Dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Net interest income
|
$
|
47,336
|
|
|
$
|
43,432
|
|
|
$
|
36,165
|
|
Interest rate spread
|
3.65
|
%
|
|
3.81
|
%
|
|
3.58
|
%
|
|||
Net interest margin
|
4.00
|
%
|
|
4.09
|
%
|
|
3.81
|
%
|
|
December 31, 2019
|
|||||||||
|
Average
|
|
|
|
Average
|
|||||
(In thousands except yield/cost information)
|
Balance
|
|
Interest
|
|
Yield/Cost
|
|||||
Assets
|
|
|
|
|
|
|||||
Interest-earning assets:
|
|
|
|
|
|
|||||
Federal funds sold/short term investments
|
$
|
8,142
|
|
|
$
|
176
|
|
|
2.16
|
%
|
Investment securities:
|
|
|
|
|
|
|||||
Taxable
|
163,415
|
|
|
4,710
|
|
|
2.88
|
|
||
Tax-exempt (1)
|
57,005
|
|
|
2,110
|
|
|
3.70
|
|
||
Total investment securities
|
220,420
|
|
|
6,820
|
|
|
3.09
|
|
||
Loans: (2)
|
|
|
|
|
|
|||||
Commercial real estate
|
426,929
|
|
|
22,129
|
|
|
5.11
|
|
||
Mortgage warehouse lines
|
174,151
|
|
|
9,543
|
|
|
5.48
|
|
||
Construction
|
156,467
|
|
|
10,576
|
|
|
6.76
|
|
||
Commercial business
|
121,985
|
|
|
7,295
|
|
|
5.98
|
|
||
Residential real estate
|
56,745
|
|
|
2,591
|
|
|
4.50
|
|
||
Loans to individuals
|
23,312
|
|
|
1,195
|
|
|
5.06
|
|
||
Loans held for sale
|
4,280
|
|
|
170
|
|
|
3.97
|
|
||
All other loans
|
1,051
|
|
|
38
|
|
|
3.57
|
|
||
Total loans
|
964,920
|
|
|
53,537
|
|
|
5.55
|
|
||
Total interest-earning assets
|
1,193,482
|
|
|
60,533
|
|
|
5.07
|
%
|
||
Non-interest-earning assets:
|
|
|
|
|
|
|||||
Allowance for loan losses
|
(8,796
|
)
|
|
|
|
|
||||
Cash and due from bank
|
11,729
|
|
|
|
|
|
||||
Other assets
|
86,887
|
|
|
|
|
|
||||
Total non-interesting-earning assets
|
89,820
|
|
|
|
|
|
||||
Total assets
|
$
|
1,283,302
|
|
|
|
|
|
|||
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|||||
Interest-bearing liabilities:
|
|
|
|
|
|
|||||
Money market and NOW accounts
|
$
|
349,663
|
|
|
$
|
2,750
|
|
|
0.79
|
%
|
Savings accounts
|
201,738
|
|
|
1,952
|
|
|
0.97
|
|
||
Certificates of deposit
|
286,419
|
|
|
6,392
|
|
|
2.23
|
|
||
Other borrowed funds
|
38,594
|
|
|
912
|
|
|
2.36
|
|
||
Redeemable subordinated debentures
|
18,557
|
|
|
748
|
|
|
4.03
|
|
||
Total interest-bearing liabilities
|
894,971
|
|
|
12,754
|
|
|
1.43
|
%
|
||
Non-interest-bearing liabilities:
|
|
|
|
|
|
|||||
Demand deposits
|
226,701
|
|
|
|
|
|
||||
Other liabilities
|
23,529
|
|
|
|
|
|
||||
Total non-interest-bearing liabilities
|
250,230
|
|
|
|
|
|
||||
Shareholders' equity
|
138,101
|
|
|
|
|
|
||||
Total liabilities and shareholders' equity
|
$
|
1,283,302
|
|
|
|
|
|
|||
Net interest spread (3)
|
|
|
|
|
3.65
|
%
|
||||
Net interest income and margin (4)
|
|
|
$
|
47,779
|
|
|
4.00
|
%
|
(1)
|
Tax-equivalent basis, using 21% federal tax rate in 2019.
|
(2)
|
Loan origination fees and costs are considered an adjustment to interest income. For the purpose of calculating loan yields, average loan balances include non-accrual loans with no related interest income and average balance of loans held for sale.
|
(3)
|
The net interest spread is the difference between the average yield on interest earning assets and the average rate paid on interest bearing liabilities.
|
(4)
|
The net interest margin is equal to net interest income divided by average interest earning assets.
|
|
December 31, 2018
|
|||||||||
|
Average
|
|
|
|
Average
|
|||||
(In thousands except yield/cost information)
|
Balance
|
|
Interest
|
|
Yield/Cost
|
|||||
Assets
|
|
|
|
|
|
|||||
Interest-earning assets:
|
|
|
|
|
|
|||||
Federal funds sold/short term investments
|
$
|
20,157
|
|
|
$
|
258
|
|
|
1.28
|
%
|
Investment securities:
|
|
|
|
|
|
|||||
Taxable
|
146,631
|
|
|
4,024
|
|
|
2.74
|
|
||
Tax-exempt (1)
|
74,477
|
|
|
2,518
|
|
|
3.38
|
|
||
Total investment securities
|
221,108
|
|
|
6,542
|
|
|
2.96
|
|
||
Loans: (2)
|
|
|
|
|
|
|||||
Commercial real estate
|
356,581
|
|
|
18,318
|
|
|
5.07
|
|
||
Mortgage warehouse lines
|
153,868
|
|
|
8,403
|
|
|
5.46
|
|
||
Construction
|
137,976
|
|
|
9,090
|
|
|
6.59
|
|
||
Commercial business
|
111,150
|
|
|
6,059
|
|
|
5.45
|
|
||
Residential real estate
|
46,301
|
|
|
2,085
|
|
|
4.44
|
|
||
Loans to individuals
|
23,155
|
|
|
1,083
|
|
|
4.61
|
|
||
Loans held for sale
|
2,738
|
|
|
123
|
|
|
4.49
|
|
||
All other loans
|
1,197
|
|
|
41
|
|
|
3.38
|
|
||
Total loans
|
832,966
|
|
|
45,202
|
|
|
5.38
|
|
||
Total interest-earning assets
|
1,074,231
|
|
|
52,002
|
|
|
4.81
|
%
|
||
Non-interest-earning assets:
|
|
|
|
|
|
|||||
Allowance for loan losses
|
(8,314
|
)
|
|
|
|
|
||||
Cash and due from bank
|
5,595
|
|
|
|
|
|
||||
Other assets
|
66,256
|
|
|
|
|
|
||||
Total non-interesting-earning assets
|
63,537
|
|
|
|
|
|
||||
Total assets
|
$
|
1,137,768
|
|
|
|
|
|
|||
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|||||
Interest-bearing liabilities:
|
|
|
|
|
|
|||||
Money market and NOW accounts
|
$
|
356,906
|
|
|
$
|
1,978
|
|
|
0.55
|
%
|
Savings accounts
|
203,940
|
|
|
1,467
|
|
|
0.72
|
|
||
Certificates of deposit
|
189,521
|
|
|
3,066
|
|
|
1.62
|
|
||
Other borrowed funds
|
36,612
|
|
|
836
|
|
|
2.28
|
|
||
Redeemable subordinated debentures
|
18,557
|
|
|
694
|
|
|
3.74
|
|
||
Total interest-bearing liabilities
|
805,536
|
|
|
8,041
|
|
|
1.00
|
%
|
||
Non-interest-bearing liabilities:
|
|
|
|
|
|
|||||
Demand deposits
|
204,002
|
|
|
|
|
|
||||
Other liabilities
|
9,018
|
|
|
|
|
|
||||
Total non-interest-bearing liabilities
|
213,020
|
|
|
|
|
|
||||
Shareholders' equity
|
119,212
|
|
|
|
|
|
||||
Total liabilities and shareholders' equity
|
$
|
1,137,768
|
|
|
|
|
|
|||
Net interest spread (3)
|
|
|
|
|
3.81
|
%
|
||||
Net interest income and margin (4)
|
|
|
$
|
43,961
|
|
|
4.09
|
%
|
(1)
|
Tax-equivalent basis, using 21% federal tax rate in 2018.
|
(2)
|
Loan origination fees and costs are considered an adjustment to interest income. For the purpose of calculating loan yields, average loan balances include non-accrual loans with no related interest income and average balance of loans held for sale.
|
(3)
|
The net interest spread is the difference between the average yield on interest earning assets and the average rate paid on interest bearing liabilities.
|
(4)
|
The net interest margin is equal to net interest income divided by average interest earning assets.
|
|
December 31, 2017
|
|||||||||
|
Average
|
|
|
|
Average
|
|||||
(In thousands except yield/cost information)
|
Balance
|
|
Interest
|
|
Yield/Cost
|
|||||
Assets
|
|
|
|
|
|
|||||
Interest-earning assets:
|
|
|
|
|
|
|||||
Federal funds sold/short term investments
|
$
|
27,533
|
|
|
$
|
230
|
|
|
0.84
|
%
|
Investment securities:
|
|
|
|
|
|
|||||
Taxable
|
140,431
|
|
|
3,326
|
|
|
2.37
|
|
||
Tax-exempt (1)
|
90,186
|
|
|
3,167
|
|
|
3.51
|
|
||
Total investment securities
|
230,617
|
|
|
6,493
|
|
|
2.82
|
|
||
Loans: (2)
|
|
|
|
|
|
|||||
Commercial real estate
|
274,192
|
|
|
13,851
|
|
|
4.98
|
|
||
Mortgage warehouse lines
|
160,756
|
|
|
6,937
|
|
|
4.26
|
|
||
Construction
|
115,913
|
|
|
6,780
|
|
|
5.77
|
|
||
Commercial business
|
96,193
|
|
|
5,474
|
|
|
5.63
|
|
||
Residential real estate
|
41,898
|
|
|
1,777
|
|
|
4.24
|
|
||
Loans to individuals
|
22,171
|
|
|
903
|
|
|
4.07
|
|
||
Loans held for sale
|
4,197
|
|
|
202
|
|
|
4.81
|
|
||
All other loans
|
1,690
|
|
|
43
|
|
|
2.51
|
|
||
Total loans
|
717,010
|
|
|
35,967
|
|
|
4.96
|
|
||
Total interest-earning assets
|
975,160
|
|
|
42,690
|
|
|
4.33
|
%
|
||
Non-interest-earning assets:
|
|
|
|
|
|
|||||
Allowance for loan losses
|
(7,703
|
)
|
|
|
|
|
||||
Cash and due from bank
|
5,371
|
|
|
|
|
|
||||
Other assets
|
58,968
|
|
|
|
|
|
||||
Total non-interesting-earning assets
|
56,636
|
|
|
|
|
|
||||
Total assets
|
$
|
1,031,796
|
|
|
|
|
|
|||
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|||||
Interest-bearing liabilities:
|
|
|
|
|
|
|||||
Money market and NOW accounts
|
$
|
336,445
|
|
|
$
|
1,440
|
|
|
0.43
|
%
|
Savings accounts
|
210,798
|
|
|
1,332
|
|
|
0.63
|
|
||
Certificates of deposit
|
145,539
|
|
|
1,778
|
|
|
1.22
|
|
||
Other borrowed funds
|
21,139
|
|
|
429
|
|
|
2.03
|
|
||
Redeemable subordinated debentures
|
18,557
|
|
|
519
|
|
|
2.80
|
|
||
Total interest-bearing liabilities
|
732,478
|
|
|
5,498
|
|
|
0.75
|
%
|
||
Non-interest-bearing liabilities:
|
|
|
|
|
|
|||||
Demand deposits
|
183,802
|
|
|
|
|
|
||||
Other liabilities
|
6,591
|
|
|
|
|
|
||||
Total non-interest-bearing liabilities
|
190,393
|
|
|
|
|
|
||||
Shareholders' equity
|
108,925
|
|
|
|
|
|
||||
Total liabilities and shareholders' equity
|
$
|
1,031,796
|
|
|
|
|
|
|||
Net interest spread (3)
|
|
|
|
|
3.58
|
%
|
||||
Net interest income and margin (4)
|
|
|
$
|
37,192
|
|
|
3.81
|
%
|
(1)
|
Tax-equivalent basis, using 34% federal tax rate in 2017.
|
(2)
|
Loan origination fees and costs are considered an adjustment to interest income. For the purpose of calculating loan yields, average loan balances include non-accrual loans with no related interest income and average balance of loans held for sale.
|
(3)
|
The net interest spread is the difference between the average yield on interest earning assets and the average rate paid on interest bearing liabilities.
|
(4)
|
The net interest margin is equal to net interest income divided by average interest earning assets.
|
|
Year ended 2019 compared with 2018
|
|
Year ended 2018 compared with 2017
|
||||||||||||||||||||
|
Due to Change in:
|
|
Due to Change in:
|
||||||||||||||||||||
(Dollars in thousands)
|
Volume
|
|
Rate
|
|
Total
|
|
Volume
|
|
Rate
|
|
Total
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal funds sold/short term investments
|
$
|
(154
|
)
|
|
$
|
72
|
|
|
$
|
(82
|
)
|
|
$
|
(62
|
)
|
|
$
|
90
|
|
|
$
|
28
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Taxable
|
461
|
|
|
225
|
|
|
686
|
|
|
148
|
|
|
550
|
|
|
698
|
|
||||||
Tax-exempt(1)
|
(591
|
)
|
|
183
|
|
|
(408
|
)
|
|
(552
|
)
|
|
(97
|
)
|
|
(649
|
)
|
||||||
Total investment securities
|
(130
|
)
|
|
408
|
|
|
278
|
|
|
(404
|
)
|
|
453
|
|
|
49
|
|
||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate
|
3,564
|
|
|
247
|
|
|
3,811
|
|
|
4,105
|
|
|
362
|
|
|
4,467
|
|
||||||
Mortgage warehouse lines
|
1,108
|
|
|
32
|
|
|
1,140
|
|
|
(293
|
)
|
|
1,759
|
|
|
1,466
|
|
||||||
Construction
|
1,218
|
|
|
268
|
|
|
1,486
|
|
|
1,273
|
|
|
1,037
|
|
|
2,310
|
|
||||||
Commercial business
|
591
|
|
|
645
|
|
|
1,236
|
|
|
842
|
|
|
(257
|
)
|
|
585
|
|
||||||
Residential real estate
|
464
|
|
|
42
|
|
|
506
|
|
|
187
|
|
|
121
|
|
|
308
|
|
||||||
Loans to individuals
|
7
|
|
|
105
|
|
|
112
|
|
|
40
|
|
|
140
|
|
|
180
|
|
||||||
Loans held for sale
|
69
|
|
|
(22
|
)
|
|
47
|
|
|
(70
|
)
|
|
(9
|
)
|
|
(79
|
)
|
||||||
Other
|
(5
|
)
|
|
2
|
|
|
(3
|
)
|
|
(12
|
)
|
|
10
|
|
|
(2
|
)
|
||||||
Total loans
|
7,016
|
|
|
1,319
|
|
|
8,335
|
|
|
6,072
|
|
|
3,163
|
|
|
9,235
|
|
||||||
Total interest income
|
$
|
6,732
|
|
|
$
|
1,799
|
|
|
$
|
8,531
|
|
|
$
|
5,606
|
|
|
$
|
3,706
|
|
|
$
|
9,312
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Money market and NOW accounts
|
(40
|
)
|
|
812
|
|
|
772
|
|
|
88
|
|
|
450
|
|
|
538
|
|
||||||
Savings accounts
|
(16
|
)
|
|
501
|
|
|
485
|
|
|
(43
|
)
|
|
178
|
|
|
135
|
|
||||||
Certificates of deposit
|
1,568
|
|
|
1,758
|
|
|
3,326
|
|
|
537
|
|
|
751
|
|
|
1,288
|
|
||||||
Other borrowed funds
|
45
|
|
|
31
|
|
|
76
|
|
|
314
|
|
|
93
|
|
|
407
|
|
||||||
Redeemable subordinated debentures
|
—
|
|
|
54
|
|
|
54
|
|
|
—
|
|
|
175
|
|
|
175
|
|
||||||
Total interest expense
|
1,557
|
|
|
3,156
|
|
|
4,713
|
|
|
896
|
|
|
1,647
|
|
|
2,543
|
|
||||||
Net interest income
|
$
|
5,175
|
|
|
$
|
(1,357
|
)
|
|
$
|
3,818
|
|
|
$
|
4,710
|
|
|
$
|
2,059
|
|
|
$
|
6,769
|
|
(1)
|
Tax-equivalent basis, using 21% federal tax rate in 2019.
|
|
Year ended December 31,
|
||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Salaries and employee benefits
|
$
|
21,304
|
|
|
$
|
19,853
|
|
|
$
|
18,804
|
|
Occupancy expense
|
4,100
|
|
|
3,623
|
|
|
3,169
|
|
|||
Data processing expenses
|
1,507
|
|
|
1,332
|
|
|
1,314
|
|
|||
Equipment expense
|
1,286
|
|
|
1,175
|
|
|
1,008
|
|
|||
Marketing
|
302
|
|
|
280
|
|
|
225
|
|
|||
Telephone
|
400
|
|
|
391
|
|
|
389
|
|
|||
Regulatory, professional and consulting fees
|
1,806
|
|
|
1,713
|
|
|
2,263
|
|
|||
Insurance
|
391
|
|
|
375
|
|
|
373
|
|
|||
Merger-related expenses
|
1,730
|
|
|
2,141
|
|
|
265
|
|
|||
FDIC insurance expense
|
154
|
|
|
486
|
|
|
360
|
|
|||
Other real estate owned expenses
|
171
|
|
|
158
|
|
|
42
|
|
|||
Amortization of intangible assets
|
140
|
|
|
318
|
|
|
384
|
|
|||
Supplies
|
275
|
|
|
294
|
|
|
259
|
|
|||
Other expenses
|
1,983
|
|
|
1,946
|
|
|
2,151
|
|
|||
Total
|
$
|
35,549
|
|
|
$
|
34,085
|
|
|
$
|
31,006
|
|
|
2019
|
||||||||||||||
|
|
|
Gross
|
|
Gross
|
|
|
||||||||
|
Amortized
|
|
Unrealized
|
|
Unrealized
|
|
Fair
|
||||||||
(In thousands)
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
||||||||
U.S. treasury securities and obligations of U.S. government-sponsored corporations ("GSE")
|
$
|
774
|
|
|
$
|
—
|
|
|
$
|
(10
|
)
|
|
$
|
764
|
|
Residential collateralized mortgage obligations - GSE
|
53,223
|
|
|
194
|
|
|
(242
|
)
|
|
53,175
|
|
||||
Residential mortgage-backed securities - GSE
|
18,100
|
|
|
292
|
|
|
(5
|
)
|
|
18,387
|
|
||||
Obligations of state and political subdivisions
|
33,177
|
|
|
342
|
|
|
—
|
|
|
33,519
|
|
||||
Single-issuer trust preferred debt securities
|
1,492
|
|
|
—
|
|
|
(50
|
)
|
|
1,442
|
|
||||
Corporate debt securities
|
23,224
|
|
|
139
|
|
|
(84
|
)
|
|
23,279
|
|
||||
Other debt securities
|
25,378
|
|
|
80
|
|
|
(242
|
)
|
|
25,216
|
|
||||
Total
|
$
|
155,368
|
|
|
$
|
1,047
|
|
|
$
|
(633
|
)
|
|
$
|
155,782
|
|
|
2018
|
||||||||||||||
|
|
|
Gross
|
|
Gross
|
|
|
||||||||
|
Amortized
|
|
Unrealized
|
|
Unrealized
|
|
Fair
|
||||||||
(In thousands)
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
||||||||
U.S. treasury securities and obligations of U.S. government-sponsored corporations ("GSE")
|
$
|
2,993
|
|
|
$
|
—
|
|
|
$
|
(41
|
)
|
|
$
|
2,952
|
|
Residential collateralized mortgage obligations-GSE
|
48,789
|
|
|
70
|
|
|
(676
|
)
|
|
48,183
|
|
||||
Residential mortgage backed securities – GSE
|
13,945
|
|
|
37
|
|
|
(100
|
)
|
|
13,882
|
|
||||
Obligations of state and political subdivisions
|
23,506
|
|
|
85
|
|
|
(249
|
)
|
|
23,342
|
|
||||
Trust preferred debt securities – single issuer
|
1,490
|
|
|
—
|
|
|
(161
|
)
|
|
1,329
|
|
||||
Corporate debt securities
|
28,323
|
|
|
—
|
|
|
(1,037
|
)
|
|
27,286
|
|
||||
Other debt securities
|
15,383
|
|
|
11
|
|
|
(146
|
)
|
|
15,248
|
|
||||
Total
|
$
|
134,429
|
|
|
$
|
203
|
|
|
$
|
(2,410
|
)
|
|
$
|
132,222
|
|
|
2019
|
||||||||||||||||||||||
(In thousands)
|
Amortized
Cost
|
|
Other-Than-
Temporary
Impairment
Recognized In
Accumulated
Other
Comprehensive
Loss
|
|
Carrying
Value
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||||||
Residential collateralized
mortgage obligations - GSE
|
$
|
5,117
|
|
|
$
|
—
|
|
|
$
|
5,117
|
|
|
$
|
76
|
|
|
$
|
(35
|
)
|
|
$
|
5,158
|
|
Residential mortgage
backed securities- GSE
|
36,528
|
|
|
—
|
|
|
36,528
|
|
|
481
|
|
|
(54
|
)
|
|
36,955
|
|
||||||
Obligations of state and political subdivisions
|
32,533
|
|
|
—
|
|
|
32,533
|
|
|
690
|
|
|
(25
|
)
|
|
33,198
|
|
||||||
Trust preferred debt securities - pooled
|
657
|
|
|
(492
|
)
|
|
165
|
|
|
479
|
|
|
—
|
|
|
644
|
|
||||||
Other debt securities
|
2,277
|
|
|
—
|
|
|
2,277
|
|
|
—
|
|
|
(9
|
)
|
|
2,268
|
|
||||||
Total
|
$
|
77,112
|
|
|
$
|
(492
|
)
|
|
$
|
76,620
|
|
|
$
|
1,726
|
|
|
$
|
(123
|
)
|
|
$
|
78,223
|
|
|
2018
|
||||||||||||||||||||||
(Dollars in thousands)
|
Amortized
Cost
|
|
Other-Than-
Temporary
Impairment
Recognized In
Accumulated
Other
Comprehensive
Loss
|
|
Carrying
Value
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||||||
Residential collateralized mortgage obligations – GSE
|
$
|
6,701
|
|
|
$
|
—
|
|
|
$
|
6,701
|
|
|
$
|
30
|
|
|
$
|
(143
|
)
|
|
$
|
6,588
|
|
Residential mortgage backed securities - GSE
|
31,343
|
|
|
—
|
|
|
31,343
|
|
|
84
|
|
|
(346
|
)
|
|
31,081
|
|
||||||
Obligations of state and political subdivisions
|
38,494
|
|
|
—
|
|
|
38,494
|
|
|
634
|
|
|
(118
|
)
|
|
39,010
|
|
||||||
Trust preferred debt securities - pooled
|
657
|
|
|
(501
|
)
|
|
156
|
|
|
569
|
|
|
—
|
|
|
725
|
|
||||||
Other debt securities
|
2,878
|
|
|
—
|
|
|
2,878
|
|
|
—
|
|
|
(78
|
)
|
|
2,800
|
|
||||||
Total
|
$
|
80,073
|
|
|
$
|
(501
|
)
|
|
$
|
79,572
|
|
|
$
|
1,317
|
|
|
$
|
(685
|
)
|
|
$
|
80,204
|
|
(Dollars in thousands)
|
Amortized
cost
|
|
Fair Value
|
|
Yield
|
|||||
Available for sale
|
|
|
|
|
|
|||||
Due in one year or less
|
$
|
10,690
|
|
|
$
|
10,662
|
|
|
2.66
|
%
|
Due after one year through five years
|
26,621
|
|
|
26,824
|
|
|
2.75
|
|
||
Due after five years through ten years
|
34,136
|
|
|
34,193
|
|
|
2.55
|
|
||
Due after ten years
|
83,921
|
|
|
84,103
|
|
|
2.75
|
|
||
Total
|
$
|
155,368
|
|
|
$
|
155,782
|
|
|
2.70
|
%
|
(Dollars in thousands)
|
Carrying Value
|
|
Fair Value
|
|
Yield
|
|||||
Held to maturity
|
|
|
|
|
|
|||||
Due in one year or less
|
$
|
6,594
|
|
|
$
|
6,664
|
|
|
3.88
|
%
|
Due after one year through five years
|
13,573
|
|
|
13,803
|
|
|
3.67
|
|
||
Due after five years through ten years
|
18,410
|
|
|
18,766
|
|
|
3.15
|
|
||
Due after ten years
|
38,043
|
|
|
38,990
|
|
|
3.11
|
|
||
Total
|
$
|
76,620
|
|
|
$
|
78,223
|
|
|
3.28
|
%
|
|
December 31,
|
|||||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|||||||||||||||
Commercial real estate
|
$
|
567,655
|
|
|
47
|
%
|
|
$
|
388,431
|
|
|
44
|
%
|
|
$
|
308,924
|
|
|
39
|
%
|
|
$
|
242,393
|
|
|
34
|
%
|
|
$
|
207,250
|
|
|
30
|
%
|
Mortgage warehouse lines
|
236,672
|
|
|
20
|
|
|
154,183
|
|
|
17
|
|
|
189,412
|
|
|
24
|
|
|
216,259
|
|
|
30
|
|
|
216,572
|
|
|
32
|
|
|||||
Construction
|
148,939
|
|
|
12
|
|
|
149,387
|
|
|
17
|
|
|
136,412
|
|
|
17
|
|
|
96,035
|
|
|
13
|
|
|
93,745
|
|
|
14
|
|
|||||
Commercial business
|
139,271
|
|
|
11
|
|
|
120,590
|
|
|
14
|
|
|
92,906
|
|
|
12
|
|
|
99,650
|
|
|
14
|
|
|
99,277
|
|
|
15
|
|
|||||
Residential real estate
|
90,259
|
|
|
7
|
|
|
47,263
|
|
|
5
|
|
|
40,494
|
|
|
5
|
|
|
44,791
|
|
|
6
|
|
|
40,744
|
|
|
6
|
|
|||||
Loans to individuals
|
32,604
|
|
|
3
|
|
|
22,962
|
|
|
3
|
|
|
21,025
|
|
|
3
|
|
|
23,736
|
|
|
3
|
|
|
23,074
|
|
|
3
|
|
|||||
Other
|
137
|
|
|
—
|
|
|
181
|
|
|
—
|
|
|
183
|
|
|
—
|
|
|
207
|
|
|
—
|
|
|
233
|
|
|
—
|
|
|||||
Deferred loan costs, net
|
491
|
|
|
—
|
|
|
167
|
|
|
—
|
|
|
550
|
|
|
—
|
|
|
1,737
|
|
|
—
|
|
|
1,226
|
|
|
—
|
|
|||||
Total
|
$
|
1,216,028
|
|
|
100
|
%
|
|
$
|
883,164
|
|
|
100
|
%
|
|
$
|
789,906
|
|
|
100
|
%
|
|
$
|
724,808
|
|
|
100
|
%
|
|
$
|
682,121
|
|
|
100
|
%
|
|
|
Maturity Range
|
|
|
||||||||||||
(Dollars in thousands)
|
|
Within
One
Year
|
|
After One But
Within
Five Years
|
|
After
Five
Years
|
|
Total
|
||||||||
Commercial real estate
|
|
$
|
60,881
|
|
|
$
|
444,702
|
|
|
$
|
62,072
|
|
|
$
|
567,655
|
|
Mortgage warehouse lines
|
|
236,672
|
|
|
—
|
|
|
—
|
|
|
236,672
|
|
||||
Construction
|
|
145,189
|
|
|
2,357
|
|
|
1,393
|
|
|
148,939
|
|
||||
Commercial business
|
|
58,886
|
|
|
39,022
|
|
|
41,363
|
|
|
139,271
|
|
||||
Residential real estate
|
|
17,944
|
|
|
32,247
|
|
|
40,068
|
|
|
90,259
|
|
||||
Loans to individuals and other loans
|
|
30,509
|
|
|
778
|
|
|
1,454
|
|
|
32,741
|
|
||||
Total
|
|
$
|
550,081
|
|
|
$
|
519,106
|
|
|
$
|
146,350
|
|
|
$
|
1,215,537
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed rate loans
|
|
$
|
34,813
|
|
|
$
|
100,502
|
|
|
$
|
123,824
|
|
|
$
|
259,139
|
|
Floating rate loans
|
|
515,268
|
|
|
418,604
|
|
|
22,526
|
|
|
956,398
|
|
||||
Total
|
|
$
|
550,081
|
|
|
$
|
519,106
|
|
|
$
|
146,350
|
|
|
$
|
1,215,537
|
|
|
December 31,
|
||||||||||||||||||
(Dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Non-Performing loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans 90 days or more past due and still accruing
|
$
|
—
|
|
|
$
|
55
|
|
|
$
|
—
|
|
|
$
|
24
|
|
|
$
|
—
|
|
Non-accrual loans
|
4,497
|
|
|
6,525
|
|
|
7,114
|
|
|
5,174
|
|
|
6,020
|
|
|||||
Total non-performing loans
|
4,497
|
|
|
6,580
|
|
|
7,114
|
|
|
5,198
|
|
|
6,020
|
|
|||||
Other real estate owned
|
571
|
|
|
2,515
|
|
|
—
|
|
|
166
|
|
|
966
|
|
|||||
Other repossessed assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total non-performing assets
|
5,068
|
|
|
9,095
|
|
|
7,114
|
|
|
5,364
|
|
|
6,986
|
|
|||||
Performing troubled debt restructurings
|
6,132
|
|
|
4,003
|
|
|
3,728
|
|
|
864
|
|
|
1,535
|
|
|||||
Performing troubled debt restructurings and total non-performing assets
|
$
|
11,200
|
|
|
$
|
13,098
|
|
|
$
|
10,842
|
|
|
$
|
6,228
|
|
|
$
|
8,521
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-performing loans to total loans
|
0.37
|
%
|
|
0.75
|
%
|
|
0.90
|
%
|
|
0.72
|
%
|
|
0.88
|
%
|
|||||
Non-performing loans to total loans excluding warehouse lines
|
0.46
|
|
|
0.90
|
|
|
1.18
|
|
|
1.02
|
|
|
1.29
|
|
|||||
Non-performing assets to total assets
|
0.32
|
|
|
0.77
|
|
|
0.66
|
|
|
0.52
|
|
|
0.72
|
|
|||||
Non-performing assets to total assets excluding mortgage warehouse lines
|
0.38
|
|
|
0.89
|
|
|
0.80
|
|
|
0.65
|
|
|
0.93
|
|
|||||
Total non-performing assets and performing troubled debt restructurings to total assets
|
0.71
|
|
|
1.11
|
|
|
1.00
|
|
|
0.60
|
|
|
0.88
|
|
(Dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Balance, beginning of year
|
$
|
8,402
|
|
|
$
|
8,013
|
|
|
$
|
7,494
|
|
|
$
|
7,560
|
|
|
$
|
6,925
|
|
Provision (credit) charged to operating expenses
|
1,350
|
|
|
900
|
|
|
600
|
|
|
(300
|
)
|
|
1,100
|
|
|||||
Loans charged off:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential real estate loans
|
—
|
|
|
—
|
|
|
(101
|
)
|
|
—
|
|
|
—
|
|
|||||
Commercial business and commercial real estate
loans
|
(463
|
)
|
|
(553
|
)
|
|
(61
|
)
|
|
(157
|
)
|
|
(477
|
)
|
|||||
Loans to individuals
|
(7
|
)
|
|
(16
|
)
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|||||
All other loans
|
(43
|
)
|
|
(17
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|||||
|
(513
|
)
|
|
(586
|
)
|
|
(162
|
)
|
|
(158
|
)
|
|
(491
|
)
|
|||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial business and commercial real estate
loans |
26
|
|
|
74
|
|
|
64
|
|
|
386
|
|
|
20
|
|
|||||
Loans to individuals
|
6
|
|
|
1
|
|
|
4
|
|
|
6
|
|
|
6
|
|
|||||
All other loans
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|||||
|
32
|
|
|
75
|
|
|
81
|
|
|
392
|
|
|
26
|
|
|||||
Net (charge offs) recoveries
|
(481
|
)
|
|
(511
|
)
|
|
(81
|
)
|
|
234
|
|
|
(465
|
)
|
|||||
Balance, end of year
|
$
|
9,271
|
|
|
$
|
8,402
|
|
|
$
|
8,013
|
|
|
$
|
7,494
|
|
|
$
|
7,560
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
At year end
|
$
|
1,216,028
|
|
|
$
|
883,164
|
|
|
$
|
789,906
|
|
|
$
|
724,808
|
|
|
$
|
682,121
|
|
Average during the year
|
964,920
|
|
|
832,966
|
|
|
717,010
|
|
|
698,436
|
|
|
684,485
|
|
|||||
Net recoveries (charge offs) to average loans outstanding
|
(0.05
|
)%
|
|
(0.06
|
)%
|
|
(0.01
|
)%
|
|
0.03
|
%
|
|
(0.07
|
)%
|
|||||
Net recoveries (charge-offs) to average loans, excluding mortgage warehouse loans
|
(0.06
|
)%
|
|
(0.08
|
)%
|
|
(0.01
|
)%
|
|
0.05
|
%
|
|
(0.10
|
)%
|
|||||
Allowance for loan losses to:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total loans at year end
|
0.76
|
%
|
|
0.95
|
%
|
|
1.01
|
%
|
|
1.03
|
%
|
|
1.11
|
%
|
|||||
Total loans at year end excluding mortgage warehouse lines and related allowance
|
0.84
|
%
|
|
1.05
|
%
|
|
1.19
|
%
|
|
1.28
|
%
|
|
1.44
|
%
|
|||||
Non-performing loans
|
206.16
|
%
|
|
127.69
|
%
|
|
112.64
|
%
|
|
144.17
|
%
|
|
125.59
|
%
|
|
December 31,
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||
|
Amount
|
|
ALL
as a %
of Loans
|
|
Loans as a % of Total
Loans
|
|
Amount
|
|
ALL
as a %
of Loans
|
|
Loans as a % of Total
Loans
|
|
Amount
|
|
ALL
as a %
of Loans
|
|
Loans as a % of Total
Loans
|
||||||||||||
Commercial real estate
|
$
|
4,524
|
|
|
0.80
|
%
|
|
47
|
%
|
|
$
|
3,439
|
|
|
0.89
|
%
|
|
44
|
%
|
|
$
|
2,949
|
|
|
0.95
|
%
|
|
39
|
%
|
Commercial business
|
1,409
|
|
|
1.01
|
|
|
11
|
|
|
1,829
|
|
|
1.52
|
|
|
14
|
|
|
1,720
|
|
|
1.85
|
|
|
12
|
|
|||
Construction loans
|
1,389
|
|
|
0.93
|
|
|
12
|
|
|
1,732
|
|
|
1.16
|
|
|
17
|
|
|
1,703
|
|
|
1.25
|
|
|
17
|
|
|||
Residential real estate
|
412
|
|
|
0.46
|
|
|
7
|
|
|
431
|
|
|
0.91
|
|
|
5
|
|
|
392
|
|
|
0.97
|
|
|
5
|
|
|||
Loans to individuals and other
|
185
|
|
|
0.57
|
|
|
3
|
|
|
148
|
|
|
0.64
|
|
|
3
|
|
|
114
|
|
|
0.54
|
|
|
3
|
|
|||
Subtotal
|
7,919
|
|
|
0.81
|
|
|
80
|
|
|
7,579
|
|
|
1.09
|
|
|
83
|
|
|
6,878
|
|
|
1.15
|
|
|
76
|
|
|||
Mortgage warehouse lines
|
1,083
|
|
|
0.46
|
|
|
20
|
|
|
731
|
|
|
0.47
|
|
|
17
|
|
|
852
|
|
|
0.45
|
|
|
24
|
|
|||
Unallocated reserves
|
269
|
|
|
—
|
|
|
—
|
|
|
92
|
|
|
—
|
|
|
—
|
|
|
283
|
|
|
—
|
|
|
—
|
|
|||
Total
|
$
|
9,271
|
|
|
0.76
|
%
|
|
100
|
%
|
|
$
|
8,402
|
|
|
0.95
|
%
|
|
100
|
%
|
|
$
|
8,013
|
|
|
1.01
|
%
|
|
100
|
%
|
|
December 31,
|
||||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||||
|
Amount
|
|
ALL
as a %
of Loans
|
|
% of
Loans
|
|
Amount
|
|
ALL
as a %
of Loans
|
|
% of
Loans
|
||||||||
Commercial real estate
|
$
|
2,574
|
|
|
1.06
|
%
|
|
34
|
%
|
|
$
|
3,049
|
|
|
1.47
|
%
|
|
30
|
%
|
Commercial business
|
1,732
|
|
|
1.74
|
|
|
14
|
|
|
2,005
|
|
|
2.02
|
|
|
15
|
|
||
Construction loans
|
1,204
|
|
|
1.25
|
|
|
13
|
|
|
1,025
|
|
|
1.09
|
|
|
14
|
|
||
Residential real estate
|
367
|
|
|
0.82
|
|
|
6
|
|
|
288
|
|
|
0.71
|
|
|
6
|
|
||
Loans to individuals and other
|
112
|
|
|
0.47
|
|
|
3
|
|
|
109
|
|
|
0.47
|
|
|
3
|
|
||
Subtotal
|
5,989
|
|
|
1.18
|
|
|
70
|
|
|
6,476
|
|
|
1.39
|
|
|
68
|
|
||
Mortgage warehouse lines
|
973
|
|
|
0.45
|
|
|
30
|
|
|
866
|
|
|
0.40
|
|
|
32
|
|
||
Unallocated reserves
|
532
|
|
|
—
|
|
|
—
|
|
|
218
|
|
|
—
|
|
|
—
|
|
||
Total
|
$
|
7,494
|
|
|
1.03
|
%
|
|
100
|
%
|
|
$
|
7,560
|
|
|
1.11
|
%
|
|
100
|
%
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||
(Dollars in thousands)
|
Amount
|
|
Percent
Of Total
|
|
Weighted
Average
Contractual
Rate
|
|
Amount
|
|
Percent
Of Total
|
|
Weighted
Average
Contractual
Rate
|
||||||||
Non-interest bearing demand
|
$
|
287,555
|
|
|
23
|
%
|
|
—
|
%
|
|
$
|
212,981
|
|
|
22
|
%
|
|
—
|
%
|
Interest bearing demand
|
393,392
|
|
|
31
|
%
|
|
0.79
|
%
|
|
323,503
|
|
|
34
|
%
|
|
0.63
|
%
|
||
Savings
|
259,033
|
|
|
20
|
%
|
|
0.97
|
%
|
|
189,612
|
|
|
20
|
%
|
|
0.81
|
%
|
||
Total core deposits
|
$
|
939,980
|
|
|
74
|
%
|
|
0.60
|
%
|
|
$
|
726,096
|
|
|
76
|
%
|
|
0.51
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Certificates of deposit
|
$
|
337,382
|
|
|
26
|
%
|
|
2.23
|
%
|
|
$
|
224,576
|
|
|
24
|
%
|
|
1.98
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total
|
$
|
1,277,362
|
|
|
100
|
%
|
|
1.04
|
%
|
|
$
|
950,672
|
|
|
100
|
%
|
|
0.85
|
%
|
(In thousands)
|
3 Months
or Less
|
|
Over 3 to
6 Months
|
|
Over 6 to
12 Months
|
|
Over 12
Months
|
|
Total
|
||||||||||
Certificates of deposit of $100,000 or more
|
$
|
54,368
|
|
|
$
|
60,652
|
|
|
$
|
76,136
|
|
|
$
|
48,225
|
|
|
$
|
239,381
|
|
Certificates of deposit less than $100,000
|
17,080
|
|
|
18,815
|
|
|
24,999
|
|
|
37,107
|
|
|
98,001
|
|
|||||
Total
|
$
|
71,448
|
|
|
$
|
79,467
|
|
|
$
|
101,135
|
|
|
$
|
85,332
|
|
|
$
|
337,382
|
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
(Dollars in thousands)
|
Average
Balance
|
|
Percentage
of Total
|
|
Average
Balance
|
|
Percentage
of Total
|
|
Average
Balance
|
|
Percentage
of Total
|
|||||||||
Non-interest bearing demand
|
$
|
226,701
|
|
|
21
|
%
|
|
$
|
204,002
|
|
|
21
|
%
|
|
$
|
183,802
|
|
|
21
|
%
|
Interest bearing demand
|
349,663
|
|
|
33
|
%
|
|
356,906
|
|
|
38
|
%
|
|
336,445
|
|
|
38
|
%
|
|||
Savings
|
201,738
|
|
|
19
|
%
|
|
203,940
|
|
|
21
|
%
|
|
210,798
|
|
|
24
|
%
|
|||
Certificates of deposit
|
286,419
|
|
|
27
|
%
|
|
189,521
|
|
|
20
|
%
|
|
145,539
|
|
|
17
|
%
|
|||
Total
|
$
|
1,064,521
|
|
|
100
|
%
|
|
$
|
954,369
|
|
|
100
|
%
|
|
$
|
876,584
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
To Be Well Capitalized
Under Prompt
|
|||||||||||
|
|
|
|
|
For Capital
|
|
Corrective
|
|||||||||||||
|
Actual
|
|
Adequacy Purposes
|
|
Action Provisions
|
|||||||||||||||
(Dollars in thousands)
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
Company
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Common Equity Tier 1
|
$
|
133,046
|
|
|
9.70
|
%
|
|
$
|
61,604
|
|
|
4.50
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Total capital to risk-weighted assets
|
160,317
|
|
|
11.69
|
%
|
|
109,519
|
|
|
8.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Tier 1 capital to risk-weighted assets
|
151,046
|
|
|
11.01
|
%
|
|
82,139
|
|
|
6.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Tier 1 leverage capital
|
151,046
|
|
|
10.56
|
%
|
|
57,245
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Common Equity Tier 1
|
$
|
150,725
|
|
|
10.99
|
%
|
|
$
|
61,579
|
|
|
4.50
|
%
|
|
$
|
88,948
|
|
|
6.50
|
%
|
Total capital to risk-weighted assets
|
159,996
|
|
|
11.67
|
%
|
|
109,474
|
|
|
8.00
|
%
|
|
136,843
|
|
|
10.00
|
%
|
|||
Tier 1 capital to risk-weighted assets
|
150,725
|
|
|
10.99
|
%
|
|
82,106
|
|
|
6.00
|
%
|
|
109,474
|
|
|
8.00
|
%
|
|||
Tier 1 leverage capital
|
150,725
|
|
|
10.54
|
%
|
|
57,222
|
|
|
4.00
|
%
|
|
71,528
|
|
|
5.00
|
%
|
(In thousands)
|
Less than One Year
|
|
One to
Three Years
|
|
Three to
Five Years
|
|
Over Five
Years
|
|
Total
|
||||||||||
Commercial and standby letters of credit
|
$
|
4,290
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,290
|
|
Commitments to fund loans
|
54,325
|
|
|
180
|
|
|
44
|
|
|
—
|
|
|
54,549
|
|
|||||
Commitments to extend credit
|
233,756
|
|
|
31,998
|
|
|
6,260
|
|
|
54,456
|
|
|
326,470
|
|
|||||
Commitments to sell residential loans
|
14,964
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,964
|
|
|||||
Total
|
$
|
307,335
|
|
|
$
|
32,178
|
|
|
$
|
6,304
|
|
|
$
|
54,456
|
|
|
$
|
400,273
|
|
|
Payments Due by Period
|
||||||||||||||||||
(In thousands)
|
Less than One Year
|
|
One to
Three Years
|
|
Three to
Five Years
|
|
More than Five
Years
|
|
Total
|
||||||||||
Operating leases
|
$
|
1,663
|
|
|
$
|
3,169
|
|
|
$
|
2,195
|
|
|
$
|
1,866
|
|
|
$
|
8,893
|
|
Borrowed funds and subordinated debentures
|
92,050
|
|
|
—
|
|
|
—
|
|
|
18,557
|
|
|
110,607
|
|
|||||
Certificates of deposit
|
252,050
|
|
|
83,191
|
|
|
2,141
|
|
|
—
|
|
|
337,382
|
|
|||||
Retirement benefit obligation projected
|
4,719
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,719
|
|
|||||
Total contractual obligations:
|
$
|
350,482
|
|
|
$
|
86,360
|
|
|
$
|
4,336
|
|
|
$
|
20,423
|
|
|
$
|
461,601
|
|
|
|
Interest Sensitivity Period
|
|
Total Within
|
|
One Year to
|
|
Over
|
|
Non-interest
|
|
|
||||||||||||||||||||||||
(In thousands)
|
|
30 Day
|
|
90 Day
|
|
180 Day
|
|
365 Day
|
|
One Year
|
|
Five Years
|
|
Five Years
|
|
Sensitive
|
|
Total
|
||||||||||||||||||
Assets :
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Cash and due from banks
|
|
$
|
12,176
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,176
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,666
|
|
|
$
|
14,842
|
|
Federal funds sold
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Investment securities
|
|
50,475
|
|
|
21,932
|
|
|
12,011
|
|
|
22,701
|
|
|
107,119
|
|
|
93,400
|
|
|
25,025
|
|
|
6,858
|
|
|
232,402
|
|
|||||||||
Loans held for sale
|
|
5,927
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,927
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,927
|
|
|||||||||
Loans, net of allowance for loan losses
|
|
521,744
|
|
|
33,910
|
|
|
43,390
|
|
|
95,680
|
|
|
694,724
|
|
|
465,353
|
|
|
42,763
|
|
|
13,188
|
|
|
1,216,028
|
|
|||||||||
Other assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
117,063
|
|
|
117,063
|
|
|||||||||
|
|
$
|
590,322
|
|
|
$
|
55,842
|
|
|
$
|
55,401
|
|
|
$
|
118,381
|
|
|
$
|
819,946
|
|
|
$
|
558,753
|
|
|
$
|
67,788
|
|
|
$
|
139,775
|
|
|
$
|
1,586,262
|
|
Liabilities and Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Demand deposits - non-interest bearing
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
287,555
|
|
|
$
|
287,555
|
|
Demand deposits - interest bearing
|
|
189,640
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
189,640
|
|
|
159,460
|
|
|
44,292
|
|
|
—
|
|
|
393,392
|
|
|||||||||
Savings deposits
|
|
134,996
|
|
|
—
|
|
|
—
|
|
|
58
|
|
|
135,054
|
|
|
72,201
|
|
|
51,778
|
|
|
—
|
|
|
259,033
|
|
|||||||||
Certificates of deposits
|
|
19,750
|
|
|
50,140
|
|
|
80,878
|
|
|
101,282
|
|
|
252,050
|
|
|
85,332
|
|
|
—
|
|
|
—
|
|
|
337,382
|
|
|||||||||
Borrowings
|
|
92,050
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
92,050
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
92,050
|
|
|||||||||
Redeemable subordinated debentures
|
|
—
|
|
|
18,000
|
|
|
—
|
|
|
—
|
|
|
18,000
|
|
|
—
|
|
|
—
|
|
|
557
|
|
|
18,557
|
|
|||||||||
Non-interest-bearing sources
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
198,293
|
|
|
198,293
|
|
|||||||||
|
|
$
|
436,436
|
|
|
$
|
68,140
|
|
|
$
|
80,878
|
|
|
$
|
101,340
|
|
|
$
|
686,794
|
|
|
$
|
316,993
|
|
|
$
|
96,070
|
|
|
$
|
486,405
|
|
|
$
|
1,586,262
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Asset (Liability) Sensitivity Gap :
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Period Gap
|
|
$
|
153,886
|
|
|
$
|
(12,298
|
)
|
|
$
|
(25,477
|
)
|
|
$
|
17,041
|
|
|
$
|
133,152
|
|
|
$
|
241,760
|
|
|
$
|
(28,282
|
)
|
|
$
|
(346,630
|
)
|
|
—
|
|
|
Cumulative Gap
|
|
$
|
153,886
|
|
|
$
|
141,588
|
|
|
$
|
116,111
|
|
|
$
|
133,152
|
|
|
$
|
133,152
|
|
|
$
|
374,912
|
|
|
$
|
346,630
|
|
|
—
|
|
|
—
|
|
||
Cumulative Gap to Total Assets
|
|
9.7
|
%
|
|
8.9
|
%
|
|
7.3
|
%
|
|
8.4
|
%
|
|
8.4
|
%
|
|
23.6
|
%
|
|
21.9
|
%
|
|
—
|
|
|
—
|
|
(1)
|
Assumes an instantaneous and parallel shift in interest rates at all maturities.
|
(2)
|
EVE is the discounted present value of expected cash flows from assets, liabilities and off-balance sheet contracts.
|
•
|
Actively market commercial business loan originations, which tend to have adjustable rate features and which generate customer relationships that can result in higher core deposit accounts;
|
•
|
Actively market commercial mortgage loan originations, which tend to have shorter terms and higher interest rates than residential mortgage loans and which generate customer relationships that can result in higher core deposit accounts;
|
•
|
Actively market core deposit relationships, which are generally longer duration liabilities;
|
•
|
Utilize short term and long term certificates of deposit and/or wholesale borrowings to manage liability duration;
|
•
|
Closely monitor and actively manage the investment portfolio, including management of duration, prepayment and interest rate risk;
|
•
|
Maintain adequate levels of capital; and
|
•
|
Utilize loan sales and/or loan participations.
|
•
|
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
|
•
|
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that the receipts and expenditures of the Company are being made only in accordance with authorizations of its management and directors; and
|
•
|
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on its financial statements.
|
|
Number of Securities to be Issued Upon Exercise of Outstanding Options
|
|
Weighted-Average Exercise Price of Outstanding Options
|
|
Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (excluding securities reflected in column (a))
|
||||
Plan Category
|
(a)
|
|
(b)
|
|
(c)
|
||||
Equity Compensation Plans Approved by Security Holders
|
122,151
|
|
|
$
|
9.85
|
|
|
398,991
|
|
Equity Compensation Plans Not Approved by Security Holders
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
122,151
|
|
|
$
|
9.85
|
|
|
398,991
|
|
Exhibit No.
|
Description
|
|
|
||
|
||
|
||
|
|
|
|
||
|
||
|
||
*
|
#
|
||
#
|
||
#
|
||
#
|
||
#
|
||
#
|
||
#
|
||
#
|
||
|
||
|
||
|
||
#
|
||
#
|
||
#
|
||
#
|
||
#
|
||
#
|
||
#
|
||
#
|
||
#
|
#
|
|
|
#
|
||
#
|
||
#
|
||
#
|
||
#
|
||
#
|
||
* #
|
||
* #
|
||
* #
|
||
* #
|
||
* #
|
||
*
|
||
*
|
||
*
|
||
*
|
||
*
|
||
101.INS
|
*
|
Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
|
101.SCH
|
*
|
Inline XBRL Taxonomy Extension Schema Document
|
101.CAL
|
*
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
*
|
Inline XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
*
|
Inline XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
*
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
|
2019
|
|
2018
|
||||
ASSETS
|
|
|
|
||||
Cash and due from banks
|
$
|
2,547
|
|
|
$
|
4,983
|
|
Interest-earning deposits
|
12,295
|
|
|
11,861
|
|
||
Total cash and cash equivalents
|
14,842
|
|
|
16,844
|
|
||
Investment securities:
|
|
|
|
||||
Available for sale, at fair value
|
155,782
|
|
|
132,222
|
|
||
Held to maturity (fair value of $78,223 and $80,204 at December 31, 2019 and
December 31, 2018, respectively) |
76,620
|
|
|
79,572
|
|
||
Total investment securities
|
232,402
|
|
|
211,794
|
|
||
Loans held for sale
|
5,927
|
|
|
3,020
|
|
||
Loans
|
1,216,028
|
|
|
883,164
|
|
||
Less: allowance for loan losses
|
(9,271
|
)
|
|
(8,402
|
)
|
||
Net loans
|
1,206,757
|
|
|
874,762
|
|
||
Premises and equipment, net
|
15,262
|
|
|
11,653
|
|
||
Right-of-use assets
|
17,957
|
|
|
—
|
|
||
Accrued interest receivable
|
4,945
|
|
|
3,860
|
|
||
Bank-owned life insurance
|
36,678
|
|
|
28,705
|
|
||
Other real estate owned
|
571
|
|
|
2,515
|
|
||
Goodwill and intangible assets
|
36,779
|
|
|
12,258
|
|
||
Other assets
|
14,142
|
|
|
12,422
|
|
||
Total assets
|
$
|
1,586,262
|
|
|
$
|
1,177,833
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|||
LIABILITIES
|
|
|
|
|
|||
Deposits
|
|
|
|
|
|||
Non-interest bearing
|
$
|
287,555
|
|
|
$
|
212,981
|
|
Interest bearing
|
989,807
|
|
|
737,691
|
|
||
Total deposits
|
1,277,362
|
|
|
950,672
|
|
||
Short-term borrowings
|
92,050
|
|
|
71,775
|
|
||
Redeemable subordinated debentures
|
18,557
|
|
|
18,557
|
|
||
Accrued interest payable
|
1,592
|
|
|
1,228
|
|
||
Lease liability
|
18,617
|
|
|
—
|
|
||
Accrued expense and other liabilities
|
7,506
|
|
|
8,516
|
|
||
Total liabilities
|
1,415,684
|
|
|
1,050,748
|
|
||
SHAREHOLDERS' EQUITY
|
|
|
|
||||
Preferred stock, no par value; 5,000,000 shares authorized; none issued
|
—
|
|
|
—
|
|
||
Common stock, no par value; 30,000,000 shares authorized; 10,224,974 and
8,639,276 shares issued and 10,191,676 and 8,605,978 shares outstanding as of December 31, 2019 and December 31, 2018, respectively |
109,964
|
|
|
79,536
|
|
||
Retained earnings
|
60,791
|
|
|
49,750
|
|
||
Treasury stock, 33,298 shares at December 31, 2019 and December 31, 2018
|
(368
|
)
|
|
(368
|
)
|
||
Accumulated other comprehensive income (loss)
|
191
|
|
|
(1,833
|
)
|
||
Total shareholders' equity
|
170,578
|
|
|
127,085
|
|
||
Total liabilities and shareholders' equity
|
$
|
1,586,262
|
|
|
$
|
1,177,833
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
INTEREST INCOME
|
|
|
|
|
|
||||||
Loans, including fees
|
$
|
53,537
|
|
|
$
|
45,202
|
|
|
$
|
35,967
|
|
Securities:
|
|
|
|
|
|
||||||
Taxable
|
4,710
|
|
|
4,024
|
|
|
3,326
|
|
|||
Tax-exempt
|
1,667
|
|
|
1,989
|
|
|
2,140
|
|
|||
Federal funds sold and short-term investments
|
176
|
|
|
258
|
|
|
230
|
|
|||
Total interest income
|
60,090
|
|
|
51,473
|
|
|
41,663
|
|
|||
INTEREST EXPENSE
|
|
|
|
|
|
|
|
||||
Deposits
|
11,094
|
|
|
6,511
|
|
|
4,550
|
|
|||
Borrowings
|
912
|
|
|
836
|
|
|
429
|
|
|||
Redeemable subordinated debentures
|
748
|
|
|
694
|
|
|
519
|
|
|||
Total interest expense
|
12,754
|
|
|
8,041
|
|
|
5,498
|
|
|||
Net interest income
|
47,336
|
|
|
43,432
|
|
|
36,165
|
|
|||
PROVISION FOR LOAN LOSSES
|
1,350
|
|
|
900
|
|
|
600
|
|
|||
Net interest income after provision for loan losses
|
45,986
|
|
|
42,532
|
|
|
35,565
|
|
|||
NON-INTEREST INCOME
|
|
|
|
|
|
|
|
||||
Service charges on deposit accounts
|
663
|
|
|
638
|
|
|
596
|
|
|||
Gain on sales of loans, net
|
4,885
|
|
|
4,475
|
|
|
5,149
|
|
|||
Income on bank-owned life insurance
|
623
|
|
|
575
|
|
|
522
|
|
|||
Gain from bargain purchase
|
—
|
|
|
230
|
|
|
—
|
|
|||
Gain on sales/calls of securities
|
30
|
|
|
12
|
|
|
129
|
|
|||
Other income
|
2,036
|
|
|
1,988
|
|
|
1,844
|
|
|||
Total non-interest income
|
8,237
|
|
|
7,918
|
|
|
8,240
|
|
|||
NON-INTEREST EXPENSES
|
|
|
|
|
|
|
|
||||
Salaries and employee benefits
|
21,304
|
|
|
19,853
|
|
|
18,804
|
|
|||
Occupancy expense
|
4,100
|
|
|
3,623
|
|
|
3,169
|
|
|||
Data processing expenses
|
1,507
|
|
|
1,332
|
|
|
1,314
|
|
|||
FDIC insurance expense
|
154
|
|
|
486
|
|
|
360
|
|
|||
Other real estate owned expenses
|
171
|
|
|
158
|
|
|
42
|
|
|||
Merger-related expenses
|
1,730
|
|
|
2,141
|
|
|
265
|
|
|||
Other operating expenses
|
6,583
|
|
|
6,492
|
|
|
7,052
|
|
|||
Total non-interest expenses
|
35,549
|
|
|
34,085
|
|
|
31,006
|
|
|||
Income before income taxes
|
18,674
|
|
|
16,365
|
|
|
12,799
|
|
|||
INCOME TAXES
|
5,040
|
|
|
4,317
|
|
|
5,871
|
|
|||
Net Income
|
$
|
13,634
|
|
|
$
|
12,048
|
|
|
$
|
6,928
|
|
EARNINGS PER COMMON SHARE
|
|
|
|
|
|
|
|
||||
Basic
|
$
|
1.54
|
|
|
$
|
1.45
|
|
|
$
|
0.86
|
|
Diluted
|
1.53
|
|
|
1.40
|
|
|
0.83
|
|
|||
WEIGHTED AVERAGE SHARES OUTSTANDING
|
|
|
|
|
|
||||||
Basic
|
8,875,237
|
|
|
8,320,718
|
|
|
8,049,981
|
|
|||
Diluted
|
8,933,471
|
|
|
8,593,509
|
|
|
8,312,784
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net income
|
$
|
13,634
|
|
|
$
|
12,048
|
|
|
$
|
6,928
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
||||||
Unrealized gains (losses) on securities available for sale
|
2,651
|
|
|
(1,624
|
)
|
|
(14
|
)
|
|||
Tax effect
|
(646
|
)
|
|
388
|
|
|
40
|
|
|||
Net of tax amount
|
2,005
|
|
|
(1,236
|
)
|
|
26
|
|
|||
|
|
|
|
|
|
||||||
Reclassification adjustment for realized gains on securities available for sale (1)
|
(30
|
)
|
|
(12
|
)
|
|
(93
|
)
|
|||
Tax effect (2)
|
7
|
|
|
3
|
|
|
38
|
|
|||
Net of tax amount
|
(23
|
)
|
|
(9
|
)
|
|
(55
|
)
|
|||
|
|
|
|
|
|
||||||
Reclassification adjustment for unrealized impairment loss on held to maturity security (3)
|
9
|
|
|
—
|
|
|
—
|
|
|||
Tax effect
|
(1
|
)
|
|
—
|
|
|
—
|
|
|||
Net of tax amount
|
8
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Pension liability
|
222
|
|
|
269
|
|
|
62
|
|
|||
Tax effect
|
(66
|
)
|
|
(77
|
)
|
|
(24
|
)
|
|||
Net of tax amount
|
156
|
|
|
192
|
|
|
38
|
|
|||
|
|
|
|
|
|
||||||
Reclassification adjustment for actuarial gains for unfunded pension liability (4)
|
(176
|
)
|
|
(62
|
)
|
|
(60
|
)
|
|||
Tax effect (2)
|
54
|
|
|
18
|
|
|
24
|
|
|||
Net of tax amount
|
(122
|
)
|
|
(44
|
)
|
|
(36
|
)
|
|||
|
|
|
|
|
|
||||||
Total other comprehensive income (loss)
|
2,024
|
|
|
(1,097
|
)
|
|
(27
|
)
|
|||
|
|
|
|
|
|
||||||
Comprehensive income
|
$
|
15,658
|
|
|
$
|
10,951
|
|
|
$
|
6,901
|
|
(1)
|
Included in gain on sale of securities on the consolidated statements of income
|
(2)
|
Included in income taxes on the consolidated statements of income
|
(3)
|
Included in investment securities held to maturity on the consolidated balance sheet
|
(4)
|
Included in salaries and employee benefits expense on the consolidated statements of income
|
|
Common
Stock
|
|
Retained
Earnings
|
|
Treasury
Stock
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
Shareholders'
Equity
|
||||||||||
Balance, January 1, 2017
|
$
|
71,695
|
|
|
$
|
34,074
|
|
|
$
|
(368
|
)
|
|
$
|
(600
|
)
|
|
$
|
104,801
|
|
Net income
|
—
|
|
|
6,928
|
|
|
—
|
|
|
—
|
|
|
6,928
|
|
|||||
Exercise of stock options and issuance of restricted
shares under employee benefit programs (31,640 and 60,613 shares, respectively) |
247
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
247
|
|
|||||
Share-based compensation
|
993
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
993
|
|
|||||
Cash dividends ($0.16 per shares)
|
—
|
|
|
(1,289
|
)
|
|
—
|
|
|
—
|
|
|
(1,289
|
)
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
|
(27
|
)
|
|||||
Reclassifications of certain deferred tax effects
|
—
|
|
|
109
|
|
|
—
|
|
|
(109
|
)
|
|
—
|
|
|||||
Balance, December 31, 2017
|
72,935
|
|
|
39,822
|
|
|
(368
|
)
|
|
(736
|
)
|
|
111,653
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
—
|
|
|
12,048
|
|
|
—
|
|
|
—
|
|
|
12,048
|
|
|||||
Exercise of stock options and issuance of restricted shares (12,762 shares and 62,150 shares, respectively)
|
88
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
88
|
|
|||||
Share-based compensation
|
1,019
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,019
|
|
|||||
Exercise of stock warrants (198,378 shares)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Issuance of common stock (249,785 shares)
|
5,494
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,494
|
|
|||||
Cash dividends ($0.255 per share)
|
—
|
|
|
(2,120
|
)
|
|
—
|
|
|
—
|
|
|
(2,120
|
)
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,097
|
)
|
|
(1,097
|
)
|
|||||
Balance, December 31, 2018
|
79,536
|
|
|
49,750
|
|
|
(368
|
)
|
|
(1,833
|
)
|
|
127,085
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
—
|
|
|
13,634
|
|
|
—
|
|
|
—
|
|
|
13,634
|
|
|||||
Exercise of stock options and issuance of restricted shares (24,277 shares and 53,931 shares, respectively)
|
149
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
149
|
|
|||||
Share-based compensation
|
1,104
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,104
|
|
|||||
Issuance of common stock (1,509,275 shares)
|
29,175
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29,175
|
|
|||||
Cash dividends declared ($0.30 per share)
|
—
|
|
|
(2,593
|
)
|
|
—
|
|
|
—
|
|
|
(2,593
|
)
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
2,024
|
|
|
2,024
|
|
|||||
Balance, December 31, 2019
|
$
|
109,964
|
|
|
$
|
60,791
|
|
|
$
|
(368
|
)
|
|
$
|
191
|
|
|
$
|
170,578
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
OPERATING ACTIVITIES:
|
|
|
|
|
|
||||||
Net Income
|
$
|
13,634
|
|
|
$
|
12,048
|
|
|
$
|
6,928
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
||||||
Provision for loan losses
|
1,350
|
|
|
900
|
|
|
600
|
|
|||
Depreciation and amortization
|
1,444
|
|
|
1,389
|
|
|
1,380
|
|
|||
Net amortization of premiums and discounts on securities
|
675
|
|
|
556
|
|
|
879
|
|
|||
SBA loan discount accretion
|
(391
|
)
|
|
(323
|
)
|
|
(247
|
)
|
|||
Gain on bargain purchase
|
—
|
|
|
(230
|
)
|
|
—
|
|
|||
Gain on sales/calls of securities available for sale
|
(30
|
)
|
|
(12
|
)
|
|
(93
|
)
|
|||
Gain on sales of securities held to maturity
|
—
|
|
|
—
|
|
|
(36
|
)
|
|||
Loss (gain) on sales of other real estate owned
|
101
|
|
|
—
|
|
|
(5
|
)
|
|||
Gains on sales of loans held for sale
|
(4,885
|
)
|
|
(4,475
|
)
|
|
(5,149
|
)
|
|||
Originations of loans held for sale
|
(146,808
|
)
|
|
(111,109
|
)
|
|
(110,831
|
)
|
|||
Proceeds from sales of loans held for sale
|
148,786
|
|
|
116,818
|
|
|
126,555
|
|
|||
Increase in cash surrender value on bank-owned life insurance
|
(623
|
)
|
|
(589
|
)
|
|
(522
|
)
|
|||
Loss on cash surrender value on bank-owned life insurance
|
—
|
|
|
14
|
|
|
—
|
|
|||
Share-based compensation expense
|
1,104
|
|
|
1,019
|
|
|
993
|
|
|||
Deferred tax expense
|
604
|
|
|
305
|
|
|
620
|
|
|||
Noncash rent and equipment expense
|
192
|
|
|
—
|
|
|
—
|
|
|||
Re-measurement of deferred tax assets and liabilities
|
—
|
|
|
(28
|
)
|
|
1,712
|
|
|||
Increase in accrued interest receivable
|
(307
|
)
|
|
(123
|
)
|
|
(383
|
)
|
|||
Decrease/(increase) decrease in other assets
|
511
|
|
|
(1,589
|
)
|
|
(181
|
)
|
|||
Increase (decrease) in accrued interest payable
|
364
|
|
|
424
|
|
|
(62
|
)
|
|||
(Decrease)/increase in accrued expenses and other liabilities
|
(2,459
|
)
|
|
2,333
|
|
|
(266
|
)
|
|||
Net cash provided by operating activities
|
13,262
|
|
|
17,328
|
|
|
21,892
|
|
|||
INVESTING ACTIVITIES:
|
|
|
|
|
|
||||||
Purchases of securities :
|
|
|
|
|
|
||||||
Available for sale
|
(33,972
|
)
|
|
(35,209
|
)
|
|
(35,680
|
)
|
|||
Held to maturity
|
(16,188
|
)
|
|
(7,723
|
)
|
|
(34,592
|
)
|
|||
Proceeds from maturities and prepayments of securities:
|
|
|
|
|
|
||||||
Available for sale
|
39,086
|
|
|
17,664
|
|
|
25,770
|
|
|||
Held to maturity
|
18,891
|
|
|
38,192
|
|
|
49,889
|
|
|||
Proceeds from sales of securities:
|
|
|
|
|
|
||||||
Available for sale
|
—
|
|
|
—
|
|
|
7,602
|
|
|||
Held to maturity
|
—
|
|
|
—
|
|
|
1,034
|
|
|||
Proceeds from bank-owned life insurance benefits paid
|
—
|
|
|
893
|
|
|
—
|
|
|||
Net (purchase) redemption of restricted stock
|
(272
|
)
|
|
(2,510
|
)
|
|
2,408
|
|
|||
Net (increase) in loans
|
(127,121
|
)
|
|
(19,762
|
)
|
|
(65,387
|
)
|
|||
Capital expenditures
|
(161
|
)
|
|
(648
|
)
|
|
(846
|
)
|
|||
Forfeitable deposit on other real estate owned
|
—
|
|
|
175
|
|
|
—
|
|
|||
Capital improvement to other real estate owned
|
—
|
|
|
—
|
|
|
(5
|
)
|
|||
Net cash paid for NJCB Merger
|
—
|
|
|
(996
|
)
|
|
—
|
|
|||
Net cash received from the Shore Merger
|
7,440
|
|
|
—
|
|
|
—
|
|
|||
Proceeds from sales of other real estate owned
|
2,448
|
|
|
—
|
|
|
631
|
|
|||
Purchase of bank-owned life insurance
|
(100
|
)
|
|
—
|
|
|
(2,345
|
)
|
|||
Net cash used in investing activities
|
(109,949
|
)
|
|
(9,924
|
)
|
|
(51,521
|
)
|
FINANCING ACTIVITIES:
|
|
|
|
|
|
||||||
Exercise of stock options
|
149
|
|
|
88
|
|
|
247
|
|
|||
Cash dividends paid to shareholders
|
(2,593
|
)
|
|
(2,120
|
)
|
|
(1,690
|
)
|
|||
Net (decrease) increase in deposits
|
76,854
|
|
|
(58,557
|
)
|
|
87,490
|
|
|||
Increase (decrease) in overnight borrowings
|
20,275
|
|
|
51,275
|
|
|
(42,550
|
)
|
|||
Repayment of long-term borrowing
|
—
|
|
|
—
|
|
|
(10,000
|
)
|
|||
Net cash provided by (used in) financing activities
|
94,685
|
|
|
(9,314
|
)
|
|
33,497
|
|
|||
(Decrease) increase in cash and cash equivalents
|
(2,002
|
)
|
|
(1,910
|
)
|
|
3,868
|
|
|||
Cash and cash equivalents at beginning of year
|
16,844
|
|
|
18,754
|
|
|
14,886
|
|
|||
Cash and cash equivalents at end of year
|
$
|
14,842
|
|
|
$
|
16,844
|
|
|
$
|
18,754
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
||||||
Cash paid during the period for :
|
|
|
|
|
|
||||||
Interest
|
$
|
12,387
|
|
|
$
|
7,617
|
|
|
$
|
5,560
|
|
Income taxes
|
6,108
|
|
|
3,226
|
|
|
3,220
|
|
|||
Noncash items:
|
|
|
|
|
|
||||||
Transfer of loans to other real estate owned
|
—
|
|
|
1,460
|
|
|
455
|
|
|||
Right-of-use assets
|
15,674
|
|
|
—
|
|
|
—
|
|
|||
Lease liability
|
16,142
|
|
|
—
|
|
|
—
|
|
|||
Acquisition of Shore Community Bank in 2019 and New Jersey Community Bank in 2018
|
|
|
|
|
|
||||||
Noncash assets acquired:
|
|
|
|
|
|
||||||
Investment securities available for sale
|
$
|
26,440
|
|
|
11,173
|
|
|
|
|||
Loans
|
205,833
|
|
|
75,144
|
|
|
|
||||
Premises and equipment, net
|
4,433
|
|
|
1,120
|
|
|
|
||||
Bank-owned life insurance
|
7,250
|
|
|
3,972
|
|
|
|
||||
Accrued interest receivable
|
778
|
|
|
259
|
|
|
|
||||
Core deposit intangible asset
|
1,467
|
|
|
80
|
|
|
|
||||
Other real estate owned
|
605
|
|
|
1,230
|
|
|
|
||||
Right-of-use assets
|
3,226
|
|
|
—
|
|
|
|
||||
Other assets
|
2,518
|
|
|
1,601
|
|
|
|
||||
|
$
|
252,550
|
|
|
$
|
94,579
|
|
|
|
||
Liabilities assumed:
|
|
|
|
|
|
||||||
Deposits
|
$
|
249,836
|
|
|
$
|
87,223
|
|
|
|
||
Lease liability
|
3,226
|
|
|
—
|
|
|
|
||||
Other liabilities
|
948
|
|
|
636
|
|
|
|
||||
|
$
|
254,010
|
|
|
$
|
87,859
|
|
|
|
||
|
|
|
|
|
|
||||||
Goodwill recorded from the Shore Merger
|
$
|
23,194
|
|
|
$
|
—
|
|
|
|
||
Common stock issued for NJCB Merger
|
—
|
|
|
5,494
|
|
|
|
||||
Common stock issued for Shore Merger
|
$
|
29,175
|
|
|
$
|
—
|
|
|
|
||
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
|
|
|
|
|
|
•
|
Management judges the loan to be uncollectible;
|
•
|
Repayment is deemed to be protracted beyond reasonable time frames;
|
•
|
The loan has been classified as a loss by either internal loan review process or external examiners;
|
•
|
The customer has filed bankruptcy and the loss becomes evident owing to a lack of assets; or
|
•
|
The loan is significantly past due unless both well secured and in the process of collection.
|
(In thousands, except per share data)
|
2019
|
|
2018
|
|
2017
|
||||||
Net income
|
$
|
13,634
|
|
|
$
|
12,048
|
|
|
$
|
6,928
|
|
|
|
|
|
|
|
||||||
Basic weighted average shares outstanding
|
8,875,237
|
|
|
8,320,718
|
|
|
8,049,981
|
|
|||
Plus: common stock equivalents
|
58,234
|
|
|
272,791
|
|
|
262,803
|
|
|||
Diluted weighted average shares outstanding
|
8,933,471
|
|
|
8,593,509
|
|
|
8,312,784
|
|
|||
Earnings per share:
|
|
|
|
|
|
||||||
Basic
|
$
|
1.54
|
|
|
$
|
1.45
|
|
|
$
|
0.86
|
|
Diluted
|
1.53
|
|
|
1.40
|
|
|
0.83
|
|
1.
|
The amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year;
|
2.
|
The amount and timing of plan assets expected to be returned to the employer;
|
3.
|
The disclosures related to the June 2001 amendments to the Japanese Welfare Pension Insurance Law;
|
4.
|
Related party disclosures about the amount of future annual benefits covered by insurance and annuity contracts and significant transactions between the employer or related parties and the plan;
|
5.
|
For nonpublic entities, the reconciliation of the opening balances to the closing balances of plan assets measured on a recurring basis in Level 3 of the fair value hierarchy. However, nonpublic entities will be required to disclose separately the amounts of transfers into and out of Level 3 of the fair value hierarchy and purchases of Level 3 plan assets; and
|
6.
|
For public entities, the effects of a one-percentage point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of net periodic benefit costs and (b) benefit obligation for postretirement health care benefits.
|
1.
|
The weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates; and
|
2.
|
An explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period.
|
1.
|
The projected benefit obligation (“PBO”) and fair value of plan assets for plans with PBOs in excess of plan assets; and
|
2.
|
The accumulated benefit obligation (“ABO”) and fair value of plan assets for plans with ABOs in excess of plan assets.
|
1.
|
The amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy;
|
2.
|
The policy for timing of transfers between levels; and
|
3.
|
The valuation process for Level 3 fair value measurements.
|
1.
|
In lieu of a roll-forward for Level 3 fair value measurements, a nonpublic entity is required to disclose transfers into and out of Level 3 of the fair value hierarchy, in addition to purchases and issues of Level 3 assets and liabilities;
|
2.
|
For investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse, only if the investee has communicated the timing to the entity or announced the timing publicly; and
|
3.
|
The amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date.
|
1.
|
The changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and
|
2.
|
The range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements.
|
(Dollars in thousands)
|
Amount
|
||
Consideration paid:
|
|
||
Company stock issued
|
$
|
29,175
|
|
Cash payment
|
24,233
|
|
|
Cash payment for unexercised outstanding stock options
|
925
|
|
|
Total consideration paid
|
$
|
54,333
|
|
|
|
||
|
|
||
Recognized amounts of identifiable assets acquired and liabilities assumed at fair value:
|
|
||
Cash and cash equivalents
|
$
|
32,599
|
|
Investment securities available for sale
|
26,440
|
|
|
Loans
|
205,833
|
|
|
Premises and equipment, net
|
4,433
|
|
|
Core deposit intangible asset
|
1,467
|
|
|
Bank-owned life insurance
|
7,250
|
|
|
Right-of-use assets
|
3,226
|
|
|
Accrued interest receivable
|
778
|
|
|
Other real estate owned
|
605
|
|
|
Other assets
|
2,518
|
|
|
Deposits
|
(249,836
|
)
|
|
Lease liability
|
(3,226
|
)
|
|
Other liabilities
|
(948
|
)
|
|
Total identifiable assets and liabilities, net
|
$
|
31,139
|
|
|
|
||
Goodwill recorded from Shore merger
|
$
|
23,194
|
|
|
At November 8, 2019
|
|||||||||||
(Dollars in thousands)
|
Loans acquired with no credit quality deterioration
|
Loans acquired with credit quality deterioration
|
Total
|
|||||||||
Commercial
|
|
|
|
|||||||||
Construction
|
$
|
9,733
|
|
|
$
|
—
|
|
|
$
|
9,733
|
|
|
Commercial real estate
|
135,482
|
|
|
4,071
|
|
|
139,553
|
|
|
|||
Commercial business
|
12,027
|
|
|
—
|
|
|
12,027
|
|
|
|||
Residential real estate
|
36,849
|
|
|
500
|
|
|
37,349
|
|
|
|||
Consumer
|
7,171
|
|
|
—
|
|
|
7,171
|
|
|
|||
Total loans
|
$
|
201,262
|
|
|
$
|
4,571
|
|
|
$
|
205,833
|
|
|
(Dollars in thousands)
|
Acquired Credit Impaired Loans
|
||
Contractually required principal and interest at acquisition
|
$
|
7,584
|
|
Contractual cash flows not expected to be collected (non-accretable difference)
|
2,355
|
|
|
|
|
||
Expected cash flows at acquisition
|
5,229
|
|
|
Interest component of expected cash flows (accretable difference)
|
658
|
|
|
|
|
||
Fair value of acquired loans
|
$
|
4,571
|
|
(Dollars in thousands)
|
Amount
|
||
Year
|
|
||
2019
|
$
|
44
|
|
2020
|
262
|
|
|
2021
|
236
|
|
|
2022
|
209
|
|
|
2023
|
182
|
|
|
Thereafter
|
534
|
|
|
Total
|
$
|
1,467
|
|
(Dollars in thousands)
|
Actual from Acquisition Date to 12/31/2019
|
|
Pro Forma for the Twelve Months Ended 12/31/2019
|
|
Pro Forma for the Twelve Months Ended 12/31/2018
|
||||||
Net interest income
|
$
|
1,428
|
|
|
$
|
54,774
|
|
|
$
|
53,115
|
|
Non-interest income
|
23
|
|
|
8,714
|
|
|
8,851
|
|
|||
Non-interest expenses
|
516
|
|
|
39,265
|
|
|
40,032
|
|
|||
Income taxes
|
252
|
|
|
5,445
|
|
|
5,884
|
|
|||
Net income
|
682
|
|
|
18,778
|
|
|
16,050
|
|
(Dollars in thousands)
|
Amount
|
||
Consideration paid:
|
|
||
Company stock issued
|
$
|
5,494
|
|
Cash payment
|
2,668
|
|
|
Cash held in escrow
|
401
|
|
|
Total consideration paid
|
$
|
8,563
|
|
|
|
||
|
|
||
Recognized amounts of identifiable assets acquired and liabilities assumed at fair value:
|
|
||
Cash and cash equivalents
|
$
|
2,073
|
|
Investment securities available for sale
|
11,173
|
|
|
Loans
|
75,144
|
|
|
Premises and equipment, net
|
1,120
|
|
|
Core deposit intangible asset
|
80
|
|
|
Bank-owned life insurance
|
3,972
|
|
|
Accrued interest receivable
|
259
|
|
|
Other real estate owned
|
1,230
|
|
|
Other assets
|
1,601
|
|
|
Deposits
|
(87,223
|
)
|
|
Other liabilities
|
(636
|
)
|
|
Total identifiable assets and liabilities, net
|
$
|
8,793
|
|
|
|
||
Gain from bargain purchase
|
$
|
230
|
|
|
2019
|
||||||||||||||
|
|
|
Gross
|
|
Gross
|
|
|
||||||||
|
Amortized
|
|
Unrealized
|
|
Unrealized
|
|
Fair
|
||||||||
(In thousands)
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
||||||||
U.S. Treasury securities and obligations of U.S. Government sponsored corporations (“GSE”)
|
$
|
774
|
|
|
$
|
—
|
|
|
$
|
(10
|
)
|
|
$
|
764
|
|
Residential collateralized mortgage obligations - GSE
|
53,223
|
|
|
194
|
|
|
(242
|
)
|
|
53,175
|
|
||||
Residential mortgage backed securities - GSE
|
18,100
|
|
|
292
|
|
|
(5
|
)
|
|
18,387
|
|
||||
Obligations of state and political subdivisions
|
33,177
|
|
|
342
|
|
|
—
|
|
|
33,519
|
|
||||
Trust preferred debt securities – single issuer
|
1,492
|
|
|
—
|
|
|
(50
|
)
|
|
1,442
|
|
||||
Corporate debt securities
|
23,224
|
|
|
139
|
|
|
(84
|
)
|
|
23,279
|
|
||||
Other debt securities
|
25,378
|
|
|
80
|
|
|
(242
|
)
|
|
25,216
|
|
||||
|
$
|
155,368
|
|
|
$
|
1,047
|
|
|
$
|
(633
|
)
|
|
$
|
155,782
|
|
|
2018
|
||||||||||||||
|
|
|
Gross
|
|
Gross
|
|
|
||||||||
|
Amortized
|
|
Unrealized
|
|
Unrealized
|
|
Fair
|
||||||||
(In thousands)
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
||||||||
U.S. Treasury securities and obligations of U.S. Government sponsored corporations (“GSE”)
|
$
|
2,993
|
|
|
$
|
—
|
|
|
$
|
(41
|
)
|
|
$
|
2,952
|
|
Residential collateralized mortgage obligations - GSE
|
48,789
|
|
|
70
|
|
|
(676
|
)
|
|
48,183
|
|
||||
Residential mortgage backed securities - GSE
|
13,945
|
|
|
37
|
|
|
(100
|
)
|
|
13,882
|
|
||||
Obligations of state and political subdivisions
|
23,506
|
|
|
85
|
|
|
(249
|
)
|
|
23,342
|
|
||||
Trust preferred debt securities – single issuer
|
1,490
|
|
|
—
|
|
|
(161
|
)
|
|
1,329
|
|
||||
Corporate debt securities
|
28,323
|
|
|
—
|
|
|
(1,037
|
)
|
|
27,286
|
|
||||
Other debt securities
|
15,383
|
|
|
11
|
|
|
(146
|
)
|
|
15,248
|
|
||||
|
$
|
134,429
|
|
|
$
|
203
|
|
|
$
|
(2,410
|
)
|
|
$
|
132,222
|
|
|
2019
|
||||||||||||||||||||||
(In thousands)
|
Amortized
Cost
|
|
Other-Than-
Temporary
Impairment
Recognized In
Accumulated
Other
Comprehensive
Loss
|
|
Carrying
Value
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||||||
Residential collateralized mortgage obligations - GSE
|
$
|
5,117
|
|
|
$
|
—
|
|
|
$
|
5,117
|
|
|
$
|
76
|
|
|
$
|
(35
|
)
|
|
$
|
5,158
|
|
Residential mortgage backed securities - GSE
|
36,528
|
|
|
—
|
|
|
36,528
|
|
|
481
|
|
|
(54
|
)
|
|
36,955
|
|
||||||
Obligations of state and political subdivisions
|
32,533
|
|
|
—
|
|
|
32,533
|
|
|
690
|
|
|
(25
|
)
|
|
33,198
|
|
||||||
Trust preferred debt securities - pooled
|
657
|
|
|
(492
|
)
|
|
165
|
|
|
479
|
|
|
—
|
|
|
644
|
|
||||||
Other debt securities
|
2,277
|
|
|
—
|
|
|
2,277
|
|
|
—
|
|
|
(9
|
)
|
|
2,268
|
|
||||||
|
$
|
77,112
|
|
|
$
|
(492
|
)
|
|
$
|
76,620
|
|
|
$
|
1,726
|
|
|
$
|
(123
|
)
|
|
$
|
78,223
|
|
|
2018
|
||||||||||||||||||||||
(In thousands)
|
Amortized
Cost
|
|
Other-Than-
Temporary
Impairment
Recognized In
Accumulated
Other
Comprehensive
Loss
|
|
Carrying
Value
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||||||
Residential collateralized mortgage obligations - GSE
|
$
|
6,701
|
|
|
$
|
—
|
|
|
$
|
6,701
|
|
|
$
|
30
|
|
|
$
|
(143
|
)
|
|
$
|
6,588
|
|
Residential mortgage backed securities - GSE
|
31,343
|
|
|
—
|
|
|
31,343
|
|
|
84
|
|
|
(346
|
)
|
|
31,081
|
|
||||||
Obligations of state and political subdivisions
|
38,494
|
|
|
—
|
|
|
38,494
|
|
|
634
|
|
|
(118
|
)
|
|
39,010
|
|
||||||
Trust preferred debt securities - pooled
|
657
|
|
|
(501
|
)
|
|
156
|
|
|
569
|
|
|
—
|
|
|
725
|
|
||||||
Other debt securities
|
2,878
|
|
|
—
|
|
|
2,878
|
|
|
—
|
|
|
(78
|
)
|
|
2,800
|
|
||||||
|
$
|
80,073
|
|
|
$
|
(501
|
)
|
|
$
|
79,572
|
|
|
$
|
1,317
|
|
|
$
|
(685
|
)
|
|
$
|
80,204
|
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||
(In thousands)
|
Available for Sale
|
|
Held to Maturity
|
|
Available for Sale
|
|
Held to Maturity
|
|
Available for Sale
|
|
Held to Maturity
|
||||||||||||
Proceeds
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,602
|
|
|
$
|
1,034
|
|
Gross gains
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
120
|
|
|
36
|
|
||||||
Gross losses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
|
—
|
|
||||||
Net tax expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
12
|
|
(Dollars in thousands)
|
Amortized
Cost
|
|
Fair Value
|
|
Yield
|
|||||
Available for sale
|
|
|
|
|
|
|||||
Due in one year or less
|
$
|
10,690
|
|
|
$
|
10,662
|
|
|
2.66
|
%
|
Due after one year through five years
|
26,621
|
|
|
26,824
|
|
|
2.75
|
|
||
Due after five years through ten years
|
34,136
|
|
|
34,193
|
|
|
2.55
|
|
||
Due after ten years
|
83,921
|
|
|
84,103
|
|
|
2.75
|
|
||
Total
|
$
|
155,368
|
|
|
$
|
155,782
|
|
|
2.70
|
%
|
|
|
|
|
|
|
|||||
|
Carrying Value
|
|
Fair Value
|
|
Yield
|
|||||
Held to maturity
|
|
|
|
|
|
|
|
|
||
Due in one year or less
|
$
|
6,594
|
|
|
$
|
6,664
|
|
|
3.88
|
%
|
Due after one year through five years
|
13,573
|
|
|
13,803
|
|
|
3.67
|
|
||
Due after five years through ten years
|
18,410
|
|
|
18,766
|
|
|
3.15
|
|
||
Due after ten years
|
38,043
|
|
|
38,990
|
|
|
3.11
|
|
||
Total
|
$
|
76,620
|
|
|
$
|
78,223
|
|
|
3.28
|
%
|
|
2019
|
|||||||||||||||||||||||||
|
|
Less than 12 months
|
|
12 months or longer
|
|
Total
|
||||||||||||||||||||
(In thousands)
|
Number
of
Securities
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|||||||||||||
U. S. Treasury securities and obligations of U.S. Government sponsored corporations (“GSE”)
|
1
|
|
|
$
|
764
|
|
|
$
|
(10
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
764
|
|
|
$
|
(10
|
)
|
Residential collateralized mortgage obligations - GSE
|
39
|
|
|
18,328
|
|
|
(138
|
)
|
|
13,300
|
|
|
(139
|
)
|
|
31,628
|
|
|
(277
|
)
|
||||||
Residential mortgage backed securities - GSE
|
13
|
|
|
5,505
|
|
|
(59
|
)
|
|
—
|
|
|
—
|
|
|
5,505
|
|
|
(59
|
)
|
||||||
Obligations of state and political subdivisions
|
4
|
|
|
2,311
|
|
|
(25
|
)
|
|
527
|
|
|
—
|
|
|
2,838
|
|
|
(25
|
)
|
||||||
Trust preferred debt securities -single issuer
|
2
|
|
|
—
|
|
|
—
|
|
|
1,442
|
|
|
(50
|
)
|
|
1,442
|
|
|
(50
|
)
|
||||||
Corporate debt securities
|
4
|
|
|
2,994
|
|
|
(5
|
)
|
|
7,954
|
|
|
(79
|
)
|
|
10,948
|
|
|
(84
|
)
|
||||||
Other debt securities
|
12
|
|
|
13,692
|
|
|
(151
|
)
|
|
5,598
|
|
|
(100
|
)
|
|
19,290
|
|
|
(251
|
)
|
||||||
Total temporarily impaired securities
|
75
|
|
|
$
|
43,594
|
|
|
$
|
(388
|
)
|
|
$
|
28,821
|
|
|
$
|
(368
|
)
|
|
$
|
72,415
|
|
|
$
|
(756
|
)
|
|
2018
|
|||||||||||||||||||||||||
|
|
Less than 12 months
|
|
12 months or longer
|
|
Total
|
||||||||||||||||||||
(In thousands)
|
Number
of
Securities
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|||||||||||||
U. S. Treasury securities and obligations of U.S. Government sponsored corporations (“GSE”)
|
2
|
|
|
$
|
994
|
|
|
$
|
(1
|
)
|
|
$
|
1,958
|
|
|
$
|
(40
|
)
|
|
$
|
2,952
|
|
|
$
|
(41
|
)
|
Residential collateralized mortgage obligations - GSE
|
34
|
|
|
20,756
|
|
|
(138
|
)
|
|
22,106
|
|
|
(682
|
)
|
|
42,862
|
|
|
(819
|
)
|
||||||
Residential mortgage backed securities - GSE
|
68
|
|
|
18,393
|
|
|
(141
|
)
|
|
19,402
|
|
|
(305
|
)
|
|
37,795
|
|
|
(446
|
)
|
||||||
Obligations of state and political subdivisions
|
67
|
|
|
12,785
|
|
|
(154
|
)
|
|
11,638
|
|
|
(213
|
)
|
|
24,423
|
|
|
(367
|
)
|
||||||
Trust preferred debt securities -single issuer
|
2
|
|
|
—
|
|
|
—
|
|
|
1,329
|
|
|
(162
|
)
|
|
1,329
|
|
|
(162
|
)
|
||||||
Corporate debt securities
|
10
|
|
|
8,912
|
|
|
(632
|
)
|
|
18,374
|
|
|
(405
|
)
|
|
27,286
|
|
|
(1,037
|
)
|
||||||
Other debt securities
|
9
|
|
|
10,943
|
|
|
(93
|
)
|
|
4,613
|
|
|
(130
|
)
|
|
15,556
|
|
|
(223
|
)
|
||||||
Total temporarily impaired securities
|
192
|
|
|
$
|
72,783
|
|
|
$
|
(1,159
|
)
|
|
$
|
79,420
|
|
|
$
|
(1,937
|
)
|
|
$
|
152,203
|
|
|
$
|
(3,095
|
)
|
|
|
|
|
||||
(In thousands)
|
2019
|
|
2018
|
||||
Commercial real estate
|
$
|
567,655
|
|
|
$
|
388,431
|
|
Mortgage warehouse lines
|
236,672
|
|
|
154,183
|
|
||
Construction
|
148,939
|
|
|
149,387
|
|
||
Commercial business
|
139,271
|
|
|
120,590
|
|
||
Residential real estate
|
90,259
|
|
|
47,263
|
|
||
Loans to individuals
|
32,604
|
|
|
22,962
|
|
||
Other loans
|
137
|
|
|
181
|
|
||
Gross Loans
|
1,215,537
|
|
|
882,997
|
|
||
Deferred loan costs, net
|
491
|
|
|
167
|
|
||
Total
|
$
|
1,216,028
|
|
|
$
|
883,164
|
|
(In thousands)
|
2019
|
|
2018
|
||||
Residential real estate
|
$
|
5,702
|
|
|
$
|
2,145
|
|
SBA
|
225
|
|
|
875
|
|
||
|
$
|
5,927
|
|
|
$
|
3,020
|
|
(In thousands)
|
2019
|
|
2018
|
||||
Balance, beginning of year
|
$
|
991
|
|
|
$
|
726
|
|
Servicing assets capitalized
|
259
|
|
|
517
|
|
||
Amortization expense
|
(320
|
)
|
|
(252
|
)
|
||
Balance, end of year
|
$
|
930
|
|
|
$
|
991
|
|
|
2019
|
||||||||||||||||||||||||||||||
(Dollars in thousands)
|
30-59 Days
|
|
60-89 Days
|
|
Greater than 90 Days
|
|
Total Past Due
|
|
Current
|
|
Total Loans Receivable
|
|
Recorded Investment > 90 Days Accruing
|
|
Nonaccrual Loans
|
||||||||||||||||
Commercial real estate
|
$
|
238
|
|
|
$
|
1,927
|
|
|
$
|
3,882
|
|
|
$
|
6,047
|
|
|
$
|
561,608
|
|
|
$
|
567,655
|
|
|
$
|
—
|
|
|
$
|
2,596
|
|
Mortgage warehouse lines
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
236,672
|
|
|
236,672
|
|
|
—
|
|
|
—
|
|
||||||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
148,939
|
|
|
148,939
|
|
|
—
|
|
|
—
|
|
||||||||
Commercial business
|
381
|
|
|
—
|
|
|
330
|
|
|
711
|
|
|
138,560
|
|
|
139,271
|
|
|
—
|
|
|
501
|
|
||||||||
Residential real estate
|
2,459
|
|
|
271
|
|
|
677
|
|
|
3,407
|
|
|
86,852
|
|
|
90,259
|
|
|
—
|
|
|
708
|
|
||||||||
Loans to individuals
|
296
|
|
|
—
|
|
|
311
|
|
|
607
|
|
|
31,997
|
|
|
32,604
|
|
|
—
|
|
|
692
|
|
||||||||
Other loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
137
|
|
|
137
|
|
|
—
|
|
|
—
|
|
||||||||
|
$
|
3,374
|
|
|
$
|
2,198
|
|
|
$
|
5,200
|
|
|
$
|
10,772
|
|
|
$
|
1,204,765
|
|
|
1,215,537
|
|
|
$
|
—
|
|
|
$
|
4,497
|
|
|
Deferred loan costs, net
|
|
|
|
|
|
|
|
|
|
|
491
|
|
|
|
|
|
|||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
$
|
1,216,028
|
|
|
|
|
|
|
2018
|
||||||||||||||||||||||||||||||
(Dollars in thousands)
|
30-59 Days
|
|
60-89 Days
|
|
Greater than 90 Days
|
|
Total Past Due
|
|
Current
|
|
Total Loans Receivable
|
|
Recorded Investment > 90 Days Accruing
|
|
Nonaccrual Loans
|
||||||||||||||||
Commercial real estate
|
$
|
—
|
|
|
$
|
499
|
|
|
$
|
1,201
|
|
|
$
|
1,700
|
|
|
$
|
386,731
|
|
|
$
|
388,431
|
|
|
$
|
—
|
|
|
$
|
1,439
|
|
Mortgage warehouse lines
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
154,183
|
|
|
154,183
|
|
|
—
|
|
|
—
|
|
||||||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
149,387
|
|
|
149,387
|
|
|
—
|
|
|
—
|
|
||||||||
Commercial business
|
280
|
|
|
—
|
|
|
466
|
|
|
746
|
|
|
119,844
|
|
|
120,590
|
|
|
—
|
|
|
3,532
|
|
||||||||
Residential real estate
|
588
|
|
|
—
|
|
|
1,156
|
|
|
1,744
|
|
|
45,519
|
|
|
47,263
|
|
|
—
|
|
|
1,156
|
|
||||||||
Loans to individuals
|
16
|
|
|
237
|
|
|
263
|
|
|
516
|
|
|
22,446
|
|
|
22,962
|
|
|
55
|
|
|
398
|
|
||||||||
Other loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
181
|
|
|
181
|
|
|
—
|
|
|
—
|
|
||||||||
|
$
|
884
|
|
|
$
|
736
|
|
|
$
|
3,086
|
|
|
$
|
4,706
|
|
|
$
|
878,291
|
|
|
882,997
|
|
|
$
|
55
|
|
|
$
|
6,525
|
|
|
Deferred loan costs, net
|
|
|
|
|
|
|
|
|
|
|
167
|
|
|
|
|
|
|||||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
$
|
883,164
|
|
|
|
|
|
•
|
Delinquencies and non-accruals;
|
•
|
Portfolio quality;
|
•
|
Concentration of credit;
|
•
|
Trends in volume and type of loans;
|
•
|
Quality of collateral;
|
•
|
Policy and procedures;
|
•
|
Experience, ability and depth of management;
|
•
|
Economic trends – national and local; and
|
•
|
External factors – competition, legal and regulatory.
|
•
|
Consumer credit scores;
|
•
|
Internal credit risk grades;
|
•
|
Loan-to-value ratios;
|
•
|
Collateral; and
|
•
|
Collection experience.
|
Commercial Credit Exposure by Internally Assigned Grade
|
2019
|
||||||||||||||||||
(In thousands)
|
Construction
|
|
Commercial
Business
|
|
Commercial
Real Estate
|
|
Mortgage
Warehouse
Lines
|
|
Residential
Real Estate
|
||||||||||
Pass
|
$
|
147,132
|
|
|
$
|
135,804
|
|
|
$
|
538,104
|
|
|
$
|
235,808
|
|
|
$
|
87,512
|
|
Special Mention
|
—
|
|
|
1,990
|
|
|
9,994
|
|
|
864
|
|
|
922
|
|
|||||
Substandard
|
1,807
|
|
|
1,477
|
|
|
19,557
|
|
|
—
|
|
|
1,825
|
|
|||||
Doubtful
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
148,939
|
|
|
$
|
139,271
|
|
|
$
|
567,655
|
|
|
$
|
236,672
|
|
|
$
|
90,259
|
|
Consumer Credit Exposure by Payment Activity
|
2019
|
||||||
(In thousands)
|
Loans to Individuals
|
|
Other Loans
|
||||
Performing
|
$
|
31,912
|
|
|
$
|
137
|
|
Nonperforming
|
692
|
|
|
—
|
|
||
Total
|
$
|
32,604
|
|
|
$
|
137
|
|
Commercial Credit Exposure by Internally Assigned Grade
|
2018
|
||||||||||||||||||
(In thousands)
|
Construction
|
|
Commercial
Business
|
|
Commercial
Real Estate
|
|
Mortgage
Warehouse
Lines
|
|
Residential
Real Estate
|
||||||||||
Pass
|
$
|
146,460
|
|
|
$
|
104,162
|
|
|
$
|
366,424
|
|
|
$
|
152,378
|
|
|
$
|
45,825
|
|
Special Mention
|
2,927
|
|
|
12,703
|
|
|
13,317
|
|
|
1,805
|
|
|
103
|
|
|||||
Substandard
|
—
|
|
|
3,487
|
|
|
8,690
|
|
|
—
|
|
|
1,335
|
|
|||||
Doubtful
|
—
|
|
|
238
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
149,387
|
|
|
$
|
120,590
|
|
|
$
|
388,431
|
|
|
$
|
154,183
|
|
|
$
|
47,263
|
|
Consumer Credit Exposure by Payment Activity
|
2018
|
||||||
(In thousands)
|
Loans to Individuals
|
|
Other Loans
|
||||
Performing
|
$
|
22,564
|
|
|
$
|
181
|
|
Nonperforming
|
398
|
|
|
—
|
|
||
Total
|
$
|
22,962
|
|
|
$
|
181
|
|
|
2019
|
|||||||||||||||||||||||||||||
(Dollars in thousands)
|
Construction
|
Commercial Business
|
Commercial Real Estate
|
Mortgage Warehouse Lines
|
Residential Real Estate
|
Loans to Individuals
|
Other
|
Unallocated
|
Deferred Loan Costs, Net
|
Total
|
||||||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Beginning balance
|
$
|
1,732
|
|
$
|
1,829
|
|
$
|
3,439
|
|
$
|
731
|
|
$
|
431
|
|
$
|
148
|
|
$
|
—
|
|
$
|
92
|
|
|
$
|
8,402
|
|
||
Provision (credit) charged to operations
|
(343
|
)
|
(76
|
)
|
1,178
|
|
352
|
|
(19
|
)
|
38
|
|
43
|
|
177
|
|
|
1,350
|
|
|||||||||||
Loans charged off
|
—
|
|
(370
|
)
|
(93
|
)
|
—
|
|
—
|
|
(7
|
)
|
(43
|
)
|
—
|
|
|
(513
|
)
|
|||||||||||
Recoveries of loans charged off
|
—
|
|
26
|
|
—
|
|
—
|
|
—
|
|
6
|
|
—
|
|
—
|
|
|
32
|
|
|||||||||||
Ending balance
|
$
|
1,389
|
|
$
|
1,409
|
|
$
|
4,524
|
|
$
|
1,083
|
|
$
|
412
|
|
$
|
185
|
|
$
|
—
|
|
$
|
269
|
|
|
$
|
9,271
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Individually evaluated for impairment
|
$
|
8
|
|
$
|
7
|
|
$
|
50
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
65
|
|
||
Loans acquired with deteriorated credit quality
|
—
|
|
3
|
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4
|
|
||||||||||
Collectively evaluated
for impairment |
1,381
|
|
1,399
|
|
4,473
|
|
1,083
|
|
412
|
|
185
|
|
—
|
|
269
|
|
|
9,202
|
|
|||||||||||
Ending balance
|
$
|
1,389
|
|
$
|
1,409
|
|
$
|
4,524
|
|
$
|
1,083
|
|
$
|
412
|
|
$
|
185
|
|
$
|
—
|
|
$
|
269
|
|
|
$
|
9,271
|
|
||
Loans receivables:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Individually evaluated for impairment
|
$
|
1,807
|
|
$
|
1,251
|
|
$
|
6,171
|
|
$
|
—
|
|
$
|
708
|
|
$
|
692
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
10,629
|
|
Loans acquired with
deteriorated credit quality
|
—
|
|
334
|
|
5,419
|
|
—
|
|
504
|
|
—
|
|
—
|
|
—
|
|
—
|
|
6,257
|
|
||||||||||
Collectively evaluated for impairment
|
147,132
|
|
137,686
|
|
556,065
|
|
236,672
|
|
89,047
|
|
31,912
|
|
137
|
|
—
|
|
491
|
|
1,199,142
|
|
||||||||||
Total
|
$
|
148,939
|
|
$
|
139,271
|
|
$
|
567,655
|
|
$
|
236,672
|
|
$
|
90,259
|
|
$
|
32,604
|
|
$
|
137
|
|
$
|
—
|
|
$
|
491
|
|
$
|
1,216,028
|
|
|
2018
|
|||||||||||||||||||||||||||||
(In thousands)
|
Construction
|
Commercial Business
|
Commercial Real Estate
|
Mortgage Warehouse Lines
|
Residential Real Estate
|
Loans to Individuals
|
Other
|
Unallocated
|
Deferred Loan Costs, Net
|
Total
|
||||||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Beginning balance
|
$
|
1,703
|
|
$
|
1,720
|
|
$
|
2,949
|
|
$
|
852
|
|
$
|
392
|
|
$
|
114
|
|
$
|
—
|
|
$
|
283
|
|
|
$
|
8,013
|
|
||
(Credit) provision charged to operations
|
29
|
|
158
|
|
920
|
|
(121
|
)
|
39
|
|
49
|
|
17
|
|
(191
|
)
|
|
900
|
|
|||||||||||
Loans charged off
|
—
|
|
(62
|
)
|
(491
|
)
|
—
|
|
—
|
|
(16
|
)
|
(17
|
)
|
—
|
|
|
(586
|
)
|
|||||||||||
Recoveries of loans charged off
|
—
|
|
13
|
|
61
|
|
—
|
|
—
|
|
1
|
|
—
|
|
—
|
|
|
75
|
|
|||||||||||
Ending balance
|
$
|
1,732
|
|
$
|
1,829
|
|
$
|
3,439
|
|
$
|
731
|
|
$
|
431
|
|
$
|
148
|
|
$
|
—
|
|
$
|
92
|
|
|
$
|
8,402
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Individually evaluated for impairment
|
$
|
—
|
|
$
|
380
|
|
$
|
71
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
451
|
|
||
Loans acquired with deteriorated credit quality
|
—
|
|
—
|
|
2
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2
|
|
||||||||||
Collectively evaluated for impairment
|
1,732
|
|
1,449
|
|
3,366
|
|
731
|
|
431
|
|
148
|
|
—
|
|
92
|
|
|
7,949
|
|
|||||||||||
Ending balance
|
$
|
1,732
|
|
$
|
1,829
|
|
$
|
3,439
|
|
$
|
731
|
|
$
|
431
|
|
$
|
148
|
|
$
|
—
|
|
$
|
92
|
|
|
$
|
8,402
|
|
||
Loans receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
$
|
103
|
|
$
|
3,775
|
|
$
|
5,093
|
|
$
|
—
|
|
$
|
1,156
|
|
$
|
398
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
10,525
|
|
Loans acquired with
deteriorated credit quality
|
—
|
|
319
|
|
1,419
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,738
|
|
||||||||||
Collectively evaluated for impairment
|
149,284
|
|
116,496
|
|
381,919
|
|
154,183
|
|
46,107
|
|
22,564
|
|
181
|
|
—
|
|
167
|
|
870,901
|
|
||||||||||
Total
|
$
|
149,387
|
|
$
|
120,590
|
|
$
|
388,431
|
|
$
|
154,183
|
|
$
|
47,263
|
|
$
|
22,962
|
|
$
|
181
|
|
$
|
—
|
|
$
|
167
|
|
$
|
883,164
|
|
|
2017
|
|||||||||||||||||||||||||||||
(In thousands)
|
Construction
|
Commercial Business
|
Commercial Real Estate
|
Mortgage Warehouse Lines
|
Residential Real Estate
|
Loans to Individuals
|
Other
|
Unallocated
|
Deferred Fees
|
Total
|
||||||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Beginning balance
|
$
|
1,204
|
|
$
|
1,732
|
|
$
|
2,574
|
|
$
|
973
|
|
$
|
367
|
|
$
|
112
|
|
$
|
—
|
|
$
|
532
|
|
|
$
|
7,494
|
|
||
(Credit) provision charged to operations
|
499
|
|
2
|
|
358
|
|
(121
|
)
|
126
|
|
(2
|
)
|
(13
|
)
|
(249
|
)
|
|
600
|
|
|||||||||||
Loans charged off
|
—
|
|
(61
|
)
|
—
|
|
—
|
|
(101
|
)
|
—
|
|
—
|
|
—
|
|
|
(162
|
)
|
|||||||||||
Recoveries of loans charged off
|
—
|
|
47
|
|
17
|
|
—
|
|
—
|
|
4
|
|
13
|
|
—
|
|
|
81
|
|
|||||||||||
Ending balance
|
$
|
1,703
|
|
$
|
1,720
|
|
$
|
2,949
|
|
$
|
852
|
|
$
|
392
|
|
$
|
114
|
|
$
|
—
|
|
$
|
283
|
|
|
|
$
|
8,013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Individually evaluated for impairment
|
$
|
—
|
|
$
|
592
|
|
$
|
92
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
684
|
|
||
Collectively evaluated for impairment
|
1,703
|
|
1,128
|
|
2,857
|
|
852
|
|
392
|
|
114
|
|
—
|
|
283
|
|
|
7,329
|
|
|||||||||||
Ending balance
|
$
|
1,703
|
|
$
|
1,720
|
|
$
|
2,949
|
|
$
|
852
|
|
$
|
392
|
|
$
|
114
|
|
$
|
—
|
|
$
|
283
|
|
|
$
|
8,013
|
|
||
Loans receivable:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Individually evaluated for impairment
|
$
|
232
|
|
$
|
4,459
|
|
$
|
5,713
|
|
$
|
—
|
|
$
|
69
|
|
$
|
368
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
10,841
|
|
Loans acquired with deteriorated credit quality
|
—
|
|
274
|
|
590
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
864
|
|
||||||||||
Collectively evaluated for impairment
|
136,180
|
|
88,173
|
|
302,621
|
|
189,412
|
|
40,425
|
|
20,657
|
|
183
|
|
—
|
|
550
|
|
778,201
|
|
||||||||||
Total
|
$
|
136,412
|
|
$
|
92,906
|
|
$
|
308,924
|
|
$
|
189,412
|
|
$
|
40,494
|
|
$
|
21,025
|
|
$
|
183
|
|
$
|
—
|
|
$
|
550
|
|
$
|
789,906
|
|
|
2019
|
||||||||||||||||||
(Dollars in thousands)
|
Recorded
Investment
|
|
Unpaid Principal
Balance
|
|
Related
Allowance
|
|
Year to Date 2019 Average
Recorded
Investment
|
|
Year to Date
2019 Interest
Income
Recognized
|
||||||||||
With no related allowance:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
35
|
|
|
$
|
—
|
|
Commercial business
|
680
|
|
|
1,971
|
|
|
—
|
|
|
916
|
|
|
10
|
|
|||||
Commercial real estate
|
7,141
|
|
|
8,204
|
|
|
—
|
|
|
2,855
|
|
|
134
|
|
|||||
Mortgage warehouse lines
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
7,821
|
|
|
10,175
|
|
|
—
|
|
|
3,806
|
|
|
144
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential real estate
|
1,212
|
|
|
1,465
|
|
|
—
|
|
|
1,334
|
|
|
6
|
|
|||||
Loans to individuals
|
692
|
|
|
802
|
|
|
—
|
|
|
695
|
|
|
—
|
|
|||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
1,904
|
|
|
2,267
|
|
|
—
|
|
|
2,029
|
|
|
6
|
|
|||||
With no related allowance
|
9,725
|
|
|
12,442
|
|
|
—
|
|
|
5,835
|
|
|
150
|
|
|||||
With an allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction
|
1,807
|
|
|
1,807
|
|
|
8
|
|
|
602
|
|
|
56
|
|
|||||
Commercial business
|
905
|
|
|
993
|
|
|
10
|
|
|
977
|
|
|
88
|
|
|||||
Commercial real estate
|
4,449
|
|
|
5,757
|
|
|
51
|
|
|
4,621
|
|
|
216
|
|
|||||
Mortgage warehouse lines
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
7,161
|
|
|
8,557
|
|
|
69
|
|
|
6,200
|
|
|
360
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Loans to individuals
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
With an allowance
|
7,161
|
|
|
8,557
|
|
|
69
|
|
|
6,201
|
|
|
360
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction
|
1,807
|
|
|
1,807
|
|
|
8
|
|
|
637
|
|
|
56
|
|
|||||
Commercial business
|
1,585
|
|
|
2,964
|
|
|
10
|
|
|
1,893
|
|
|
98
|
|
|||||
Commercial real estate
|
11,590
|
|
|
13,961
|
|
|
51
|
|
|
7,476
|
|
|
350
|
|
|||||
Mortgage warehouse lines
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential real estate
|
1,212
|
|
|
1,465
|
|
|
—
|
|
|
1,334
|
|
|
6
|
|
|||||
Loans to individuals
|
692
|
|
|
802
|
|
|
—
|
|
|
696
|
|
|
—
|
|
|||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
$
|
16,886
|
|
|
$
|
20,999
|
|
|
$
|
69
|
|
|
$
|
12,036
|
|
|
$
|
510
|
|
|
December 31, 2018
|
||||||||||||||||||
(Dollars in thousands)
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Year to Date 2018 Average
Recorded
Investment
|
|
Year to Date
2018 Interest
Income
Recognized
|
||||||||||
With no related allowance:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction
|
$
|
103
|
|
|
$
|
103
|
|
|
$
|
—
|
|
|
$
|
115
|
|
|
$
|
7
|
|
Commercial business
|
992
|
|
|
1,332
|
|
|
—
|
|
|
1,112
|
|
|
112
|
|
|||||
Commercial real estate
|
2,304
|
|
|
2,629
|
|
|
—
|
|
|
2,757
|
|
|
48
|
|
|||||
Mortgage warehouse lines
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
3,399
|
|
|
4,064
|
|
|
—
|
|
|
3,984
|
|
|
167
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential real estate
|
1,156
|
|
|
1,241
|
|
|
—
|
|
|
846
|
|
|
—
|
|
|||||
Loans to individuals
|
398
|
|
|
478
|
|
|
—
|
|
|
410
|
|
|
—
|
|
|||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
1,554
|
|
|
1,719
|
|
|
—
|
|
|
1,256
|
|
|
—
|
|
|||||
With no related allowance
|
4,953
|
|
|
5,783
|
|
|
—
|
|
|
5,240
|
|
|
167
|
|
|||||
With an allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial business
|
3,102
|
|
|
3,217
|
|
|
380
|
|
|
3,326
|
|
|
44
|
|
|||||
Commercial real estate
|
4,208
|
|
|
4,208
|
|
|
73
|
|
|
4,336
|
|
|
252
|
|
|||||
Mortgage warehouse lines
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
7,310
|
|
|
7,425
|
|
|
453
|
|
|
7,662
|
|
|
296
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Loans to individuals
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
With an allowance
|
7,310
|
|
|
7,425
|
|
|
453
|
|
|
7,662
|
|
|
296
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction
|
103
|
|
|
103
|
|
|
—
|
|
|
115
|
|
|
7
|
|
|||||
Commercial business
|
4,094
|
|
|
4,549
|
|
|
380
|
|
|
4,438
|
|
|
156
|
|
|||||
Commercial real estate
|
6,512
|
|
|
6,837
|
|
|
73
|
|
|
7,093
|
|
|
300
|
|
|||||
Mortgage warehouse lines
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential real estate
|
1,156
|
|
|
1,241
|
|
|
—
|
|
|
846
|
|
|
—
|
|
|||||
Loans to individuals
|
398
|
|
|
478
|
|
|
—
|
|
|
410
|
|
|
—
|
|
|||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
$
|
12,263
|
|
|
$
|
13,208
|
|
|
$
|
453
|
|
|
$
|
12,902
|
|
|
$
|
463
|
|
(Dollars in thousands)
|
Year to Date 2017 Average
Recorded
Investment
|
|
Year to Date
2017 Interest
Income
Recognized
|
||||
With no related allowance:
|
|
|
|
||||
Commercial:
|
|
|
|
||||
Construction
|
$
|
209
|
|
|
$
|
12
|
|
Commercial business
|
828
|
|
|
153
|
|
||
Commercial real estate
|
2,772
|
|
|
128
|
|
||
Mortgage warehouse lines
|
—
|
|
|
—
|
|
||
|
3,809
|
|
|
293
|
|
||
Consumer:
|
|
|
|
||||
Residential real estate
|
142
|
|
|
—
|
|
||
Loans to individuals
|
342
|
|
|
—
|
|
||
Other
|
—
|
|
|
—
|
|
||
|
484
|
|
|
—
|
|
||
With no related allowance
|
4,435
|
|
|
293
|
|
||
With an allowance:
|
|
|
|
|
|
||
Commercial:
|
|
|
|
|
|
||
Construction
|
86
|
|
|
—
|
|
||
Commercial business
|
2,864
|
|
|
84
|
|
||
Commercial real estate
|
3,005
|
|
|
188
|
|
||
Mortgage warehouse lines
|
—
|
|
|
—
|
|
||
|
5,955
|
|
|
272
|
|
||
Consumer:
|
|
|
|
||||
Residential real estate
|
75
|
|
|
—
|
|
||
Loans to individuals
|
—
|
|
|
—
|
|
||
Other
|
—
|
|
|
—
|
|
||
|
75
|
|
|
—
|
|
||
With an allowance
|
6,030
|
|
|
272
|
|
||
|
|
|
|
||||
Total:
|
|
|
|
|
|
||
Construction
|
295
|
|
|
12
|
|
||
Commercial business
|
3,692
|
|
|
237
|
|
||
Commercial real estate
|
5,777
|
|
|
316
|
|
||
Mortgage warehouse lines
|
—
|
|
|
—
|
|
||
Residential real estate
|
217
|
|
|
—
|
|
||
Loans to individuals
|
342
|
|
|
—
|
|
||
Other
|
—
|
|
|
—
|
|
||
|
$
|
10,323
|
|
|
$
|
565
|
|
(In thousands)
|
2019
|
|
2018
|
||||
Outstanding balance
|
$
|
8,038
|
|
|
$
|
2,007
|
|
Carrying amount
|
6,257
|
|
|
1,738
|
|
(In thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Balance at beginning of year
|
$
|
164
|
|
|
$
|
126
|
|
|
$
|
30
|
|
Acquisition of impaired loans
|
658
|
|
|
168
|
|
|
—
|
|
|||
Transfer from non-accretable to accretable
|
—
|
|
|
—
|
|
|
161
|
|
|||
Accretion of discount
|
(165
|
)
|
|
(130
|
)
|
|
(65
|
)
|
|||
Balance at end of year
|
$
|
657
|
|
|
$
|
164
|
|
|
126
|
|
|
|
|
|
|
|
|
|
|||||
Non-accretable difference at end of year
|
$
|
1,175
|
|
|
$
|
122
|
|
|
$
|
26
|
|
|
December 31,
|
||||||||||
(Dollars in thousands)
|
2019
|
|
2018
|
||||||||
|
Number of loans
|
|
Recorded Investment
|
|
Number of loans
|
|
Recorded Investment
|
||||
|
2
|
|
$
|
382
|
|
|
4
|
|
$
|
821
|
|
|
2019
|
|||||||||
(Dollars in thousands)
|
Number of
Contracts
|
|
Pre-Modification
Outstanding
Recorded
Investment
|
|
Post-Modification
Outstanding
Recorded
Investment
|
|||||
Troubled Debt Restructurings:
|
|
|
|
|
|
|||||
Commercial business
|
3
|
|
|
$
|
597
|
|
|
$
|
595
|
|
Construction
|
1
|
|
|
$
|
1,807
|
|
|
$
|
1,807
|
|
|
2018
|
|||||||||
(Dollars in thousands)
|
Number of
Contracts
|
|
Pre-Modification
Outstanding
Recorded
Investment
|
|
Post-Modification
Outstanding
Recorded
Investment
|
|||||
Troubled Debt Restructurings:
|
|
|
|
|
|
|||||
Commercial business
|
1
|
|
|
$
|
135
|
|
|
$
|
132
|
|
Commercial real estate
|
2
|
|
|
$
|
1,001
|
|
|
$
|
991
|
|
(In thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Balance, beginning of year
|
$
|
5,805
|
|
|
$
|
2,719
|
|
|
$
|
1,357
|
|
Loans granted
|
3,199
|
|
|
3,365
|
|
|
1,603
|
|
|||
Repayments of loans
|
(2,668
|
)
|
|
(279
|
)
|
|
(241
|
)
|
|||
Balance, end of year
|
$
|
6,336
|
|
|
$
|
5,805
|
|
|
$
|
2,719
|
|
(Dollars in thousands)
|
Estimated
Useful Lives
|
|
2019
|
|
2018
|
||||
Land
|
|
|
$
|
2,536
|
|
|
$
|
1,798
|
|
Building
|
40 years
|
|
10,666
|
|
|
8,340
|
|
||
Leasehold improvements
|
3 - 10 years
|
|
7,721
|
|
|
7,577
|
|
||
Furniture, fixtures and equipment
|
3 - 15 years
|
|
6,401
|
|
|
5,520
|
|
||
Projects in progress
|
|
|
529
|
|
|
24
|
|
||
|
|
|
27,853
|
|
|
23,259
|
|
||
Less: Accumulated depreciation
|
|
|
12,591
|
|
|
11,606
|
|
||
Total
|
|
|
$
|
15,262
|
|
|
$
|
11,653
|
|
(In thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Balance, beginning of year
|
$
|
2,515
|
|
|
$
|
—
|
|
|
$
|
166
|
|
Other real estate owned properties added
|
—
|
|
|
1,460
|
|
|
455
|
|
|||
Other real estate owned property acquired in NJCB merger
|
—
|
|
|
1,230
|
|
|
—
|
|
|||
Other real estate owned property acquired in Shore merger
|
605
|
|
|
|
|
|
|||||
Sales during the year
|
(2,549
|
)
|
|
—
|
|
|
(626
|
)
|
|||
Increase in carrying amount of other real estate owned
|
—
|
|
|
—
|
|
|
5
|
|
|||
Forfeitable deposit on other real estate owned
|
—
|
|
|
(175
|
)
|
|
—
|
|
|||
Balance, end of year
|
$
|
571
|
|
|
$
|
2,515
|
|
|
$
|
—
|
|
(In thousands)
|
2019
|
|
2018
|
||||
Beginning balance
|
$
|
12,258
|
|
|
$
|
12,496
|
|
Additions:
|
|
|
|
||||
Goodwill
|
23,194
|
|
|
—
|
|
||
Core deposits intangible
|
1,467
|
|
|
80
|
|
||
Amortization expense
|
(140
|
)
|
|
(318
|
)
|
||
Total
|
$
|
36,779
|
|
|
$
|
12,258
|
|
(In thousands)
|
Year
|
|
Amount
|
||
|
2020
|
|
$
|
390
|
|
|
2021
|
|
314
|
|
|
|
2022
|
|
263
|
|
|
|
2023
|
|
213
|
|
|
|
2024
|
|
164
|
|
|
|
After five years
|
|
388
|
|
|
|
|
|
$
|
1,732
|
|
|
|
|
% of Total
|
|
|
|
% of Total
|
||||||
(Dollars in thousands)
|
2019
|
|
Deposits
|
|
2018
|
|
Deposits
|
||||||
Non-interest bearing
|
$
|
287,555
|
|
|
22.51
|
%
|
|
$
|
212,981
|
|
|
22.40
|
%
|
Interest bearing
|
393,392
|
|
|
30.80
|
|
|
323,503
|
|
|
34.03
|
|
||
Savings
|
259,033
|
|
|
20.28
|
|
|
189,612
|
|
|
19.95
|
|
||
Certificates of deposit
|
337,382
|
|
|
26.41
|
|
|
224,576
|
|
|
23.62
|
|
||
|
$
|
1,277,362
|
|
|
100.00
|
%
|
|
$
|
950,672
|
|
|
100.00
|
%
|
(In thousands)
|
Year
|
|
Amount
|
||
|
2020
|
|
$
|
251,852
|
|
|
2021
|
|
59,950
|
|
|
|
2022
|
|
19,658
|
|
|
|
2023
|
|
3,781
|
|
|
|
2024
|
|
2,141
|
|
|
|
|
|
$
|
337,382
|
|
(In thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Federal:
|
|
|
|
|
|
||||||
Current
|
$
|
2,826
|
|
|
$
|
2,479
|
|
|
$
|
2,791
|
|
Deferred
|
418
|
|
|
209
|
|
|
496
|
|
|||
Remeasurement of deferred tax assets and liabilities
|
—
|
|
|
(28
|
)
|
|
1,712
|
|
|||
|
3,244
|
|
|
2,660
|
|
|
4,999
|
|
|||
State:
|
|
|
|
|
|
||||||
Current
|
1,610
|
|
|
1,561
|
|
|
748
|
|
|||
Deferred
|
186
|
|
|
96
|
|
|
124
|
|
|||
|
1,796
|
|
|
1,657
|
|
|
872
|
|
|||
|
$
|
5,040
|
|
|
$
|
4,317
|
|
|
$
|
5,871
|
|
(In thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Federal income tax
|
$
|
3,922
|
|
|
$
|
3,437
|
|
|
$
|
4,352
|
|
Add (deduct) effect of:
|
|
|
|
|
|
|
|
||||
State income taxes net of federal income tax effect
|
1,419
|
|
|
1,309
|
|
|
575
|
|
|||
Tax-exempt interest income
|
(348
|
)
|
|
(416
|
)
|
|
(728
|
)
|
|||
Bank-owned life insurance
|
(131
|
)
|
|
(110
|
)
|
|
(177
|
)
|
|||
Executive compensation
|
120
|
|
|
96
|
|
|
139
|
|
|||
Remeasurement of federal deferred tax assets and liabilities
|
—
|
|
|
(28
|
)
|
|
1,712
|
|
|||
Other items, net
|
58
|
|
|
29
|
|
|
(2
|
)
|
|||
Provision for income taxes
|
$
|
5,040
|
|
|
$
|
4,317
|
|
|
$
|
5,871
|
|
(In thousands)
|
2019
|
|
2018
|
||||
Deferred tax assets:
|
|
|
|
||||
Allowance for loan losses
|
$
|
2,606
|
|
|
$
|
2,362
|
|
Unrealized loss on securities available for sale
|
—
|
|
|
528
|
|
||
Supplemental executive retirement plan liability
|
1,343
|
|
|
1,294
|
|
||
Other than temporary impairment loss
|
118
|
|
|
119
|
|
||
Depreciation
|
752
|
|
|
612
|
|
||
Non-accrual interest
|
318
|
|
|
200
|
|
||
Acquisition accounting adjustments
|
1,121
|
|
|
647
|
|
||
Lease liability
|
5,233
|
|
|
—
|
|
||
Federal net operating loss carryover, net
|
830
|
|
|
871
|
|
||
Other
|
103
|
|
|
72
|
|
||
Total gross deferred tax assets
|
$
|
12,424
|
|
|
$
|
6,705
|
|
Deferred tax liabilities:
|
|
|
|
||||
Deferred costs
|
631
|
|
|
564
|
|
||
Pension liability
|
102
|
|
|
90
|
|
||
Right-of-use assets
|
5,048
|
|
|
—
|
|
||
Unrealized gain on securities available for sale
|
111
|
|
|
—
|
|
||
Total gross deferred tax liabilities
|
$
|
5,892
|
|
|
$
|
654
|
|
|
|
|
|
||||
Net deferred tax assets
|
$
|
6,532
|
|
|
$
|
6,051
|
|
|
2019
|
||||||||||
(In thousands)
|
Before-Tax Amount
|
|
Income Tax Effect
|
|
Net-of-Tax Amount
|
||||||
Net unrealized holding gain on securities available for sale
|
$
|
414
|
|
|
$
|
(111
|
)
|
|
$
|
303
|
|
Unrealized impairment loss on held to maturity security
|
(492
|
)
|
|
118
|
|
|
(374
|
)
|
|||
Gains on unfunded pension liability
|
364
|
|
|
(102
|
)
|
|
262
|
|
|||
Total other comprehensive income
|
$
|
286
|
|
|
$
|
(95
|
)
|
|
$
|
191
|
|
|
|
|
|
|
|
||||||
|
2018
|
||||||||||
|
Before-Tax Amount
|
|
Income Tax Effect
|
|
Net-of-Tax Amount
|
||||||
Net unrealized holding loss on securities available for sale
|
$
|
(2,207
|
)
|
|
$
|
528
|
|
|
$
|
(1,679
|
)
|
Unrealized impairment loss on held to maturity security
|
(501
|
)
|
|
119
|
|
|
(382
|
)
|
|||
Gains on unfunded pension liability
|
318
|
|
|
(90
|
)
|
|
228
|
|
|||
Total other comprehensive loss
|
$
|
(2,390
|
)
|
|
$
|
557
|
|
|
$
|
(1,833
|
)
|
(In thousands)
|
Unrealized Holding Gains (Losses) on Available for Sale Securities
|
|
Unrealized Impairment Loss on Held to Maturity Security
|
|
Unfunded Pension Liability
|
|
Accumulated Other Comprehensive Income (Loss)
|
||||||||
Balance, December 31, 2016
|
$
|
(334
|
)
|
|
$
|
(331
|
)
|
|
$
|
65
|
|
|
$
|
(600
|
)
|
Other comprehensive income (loss) before reclassifications
|
26
|
|
|
—
|
|
|
38
|
|
|
64
|
|
||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
(55
|
)
|
|
—
|
|
|
(36
|
)
|
|
(91
|
)
|
||||
Other comprehensive income (loss)
|
(29
|
)
|
|
—
|
|
|
2
|
|
|
(27
|
)
|
||||
Reclassification for certain deferred tax effects
|
(71
|
)
|
|
(51
|
)
|
|
13
|
|
|
(109
|
)
|
||||
Balance, December 31, 2017
|
(434
|
)
|
|
(382
|
)
|
|
80
|
|
|
(736
|
)
|
||||
Other comprehensive income (loss) before reclassifications
|
(1,236
|
)
|
|
—
|
|
|
192
|
|
|
(1,044
|
)
|
||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
(44
|
)
|
|
(44
|
)
|
||||
Reclassification adjustments for gains realized in income
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
||||
Other comprehensive income (loss)
|
(1,245
|
)
|
|
—
|
|
|
148
|
|
|
(1,097
|
)
|
||||
Balance, December 31, 2018
|
(1,679
|
)
|
|
(382
|
)
|
|
228
|
|
|
(1,833
|
)
|
||||
Other comprehensive income before reclassifications
|
2,005
|
|
|
—
|
|
|
156
|
|
|
2,161
|
|
||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
—
|
|
|
8
|
|
|
(122
|
)
|
|
(114
|
)
|
||||
Reclassification adjustments for gains realized in income
|
(23
|
)
|
|
—
|
|
|
—
|
|
|
(23
|
)
|
||||
Other comprehensive income
|
1,982
|
|
|
8
|
|
|
34
|
|
|
2,024
|
|
||||
Balance, December 31, 2019
|
$
|
303
|
|
|
$
|
(374
|
)
|
|
$
|
262
|
|
|
$
|
191
|
|
(In thousands)
|
2019
|
|
2018
|
||||
Change in Benefit Obligation
|
|
|
|
||||
Beginning January 1
|
$
|
4,285
|
|
|
$
|
4,205
|
|
Service cost
|
189
|
|
|
192
|
|
||
Interest cost
|
164
|
|
|
157
|
|
||
Actuarial gain
|
(222
|
)
|
|
(269
|
)
|
||
Benefits paid
|
—
|
|
|
—
|
|
||
Ending December 31
|
$
|
4,416
|
|
|
$
|
4,285
|
|
|
|
|
|
||||
Amount Recognized in Consolidated Balance Sheets
|
|
|
|
||||
Liability for pension
|
$
|
4,780
|
|
|
$
|
4,603
|
|
Net actuarial gain included in accumulated other comprehensive loss
|
(364
|
)
|
|
(318
|
)
|
||
Net recognized pension liability
|
$
|
4,416
|
|
|
$
|
4,285
|
|
|
|
|
|
||||
Information for pension plans with an accumulated
benefit obligation in excess of plan assets
|
|
|
|
||||
Projected benefit obligation
|
$
|
4,416
|
|
|
$
|
4,285
|
|
Accumulated benefit obligation
|
4,245
|
|
|
4,120
|
|
(In thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Service cost
|
$
|
189
|
|
|
$
|
192
|
|
|
$
|
197
|
|
Interest cost
|
164
|
|
|
157
|
|
|
156
|
|
|||
Recognized net actuarial gain
|
(176
|
)
|
|
(62
|
)
|
|
(60
|
)
|
|||
Net periodic benefit cost
|
$
|
177
|
|
|
$
|
287
|
|
|
$
|
293
|
|
|
|
Number of
Shares
|
|
Weighted
Average
Exercise Price
|
|
Weighted
Average
Remaining
Contractual
Term (years)
|
|
Aggregate
Intrinsic
Value (In thousands)
|
|||||
Outstanding at January 1, 2019
|
|
139,511
|
|
|
$
|
8.70
|
|
|
4.0
|
|
$
|
1,566
|
|
Granted
|
|
11,400
|
|
|
19.38
|
|
|
|
|
|
|
||
Exercised
|
|
(24,277
|
)
|
|
7.37
|
|
|
|
|
|
|
||
Forfeited
|
|
(1,268
|
)
|
|
17.91
|
|
|
|
|
|
|
||
Expired or exchanged
|
|
(3,215
|
)
|
|
13.03
|
|
|
|
|
|
|
||
Outstanding at December 31, 2019
|
|
122,151
|
|
|
$
|
9.85
|
|
|
3.9
|
|
$
|
1,500
|
|
|
|
|
|
|
|
|
|
|
|||||
Exercisable at December 31, 2019
|
|
103,145
|
|
|
$
|
8.29
|
|
|
3.1
|
|
$
|
1,427
|
|
|
Outstanding Options
|
|
Exercisable Options
|
||||||||||||||
Exercise Price Range
|
Number
|
|
Average
Life in
Years
|
|
Average
Exercise
Price
|
|
Number
|
|
Average
Life in
Years
|
|
Average
Exercise
Price
|
||||||
$5.54 to $5.63
|
44,897
|
|
|
1.8
|
|
$
|
5.61
|
|
|
44,897
|
|
|
1.8
|
|
$
|
5.61
|
|
$6.16 to $7.46
|
27,827
|
|
|
2.0
|
|
7.10
|
|
|
27,827
|
|
|
2.0
|
|
7.10
|
|
||
$9.30 to $11.98
|
21,497
|
|
|
5.0
|
|
10.64
|
|
|
19,901
|
|
|
4.9
|
|
10.54
|
|
||
$18.30 to 19.38
|
27,930
|
|
|
8.1
|
|
18.81
|
|
|
10,520
|
|
|
7.8
|
|
18.67
|
|
||
|
122,151
|
|
|
3.9
|
|
$
|
9.85
|
|
|
103,145
|
|
|
3.1
|
|
$
|
8.29
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Fair value of options granted
|
$
|
5.63
|
|
|
$
|
5.93
|
|
|
$
|
6.05
|
|
Risk-free rate of return
|
2.55
|
%
|
|
2.46
|
%
|
|
2.45
|
%
|
|||
Expected option life in years
|
7
|
|
|
7
|
|
|
7
|
|
|||
Expected volatility
|
29.09
|
%
|
|
31.35
|
%
|
|
31.25
|
%
|
|||
Expected dividends
|
1.56
|
%
|
|
1.18
|
%
|
|
1.19
|
%
|
|
|
Number of
Shares
|
|
Weighted Average
Grant-Date
Fair Value
|
|||
Balance, January 1, 2019
|
|
147,533
|
|
|
$
|
13.21
|
|
Granted
|
|
53,931
|
|
|
18.30
|
|
|
Vested
|
|
(65,320
|
)
|
|
15.91
|
|
|
Forfeited
|
|
(1,785
|
)
|
|
17.31
|
|
|
Balance at December 31, 2019
|
|
134,359
|
|
|
$
|
13.84
|
|
(Dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Regulatory, professional and other consulting fees
|
$
|
1,806
|
|
|
$
|
1,713
|
|
|
$
|
2,263
|
|
Equipment
|
1,286
|
|
|
1,175
|
|
|
1,008
|
|
|||
Telephone
|
400
|
|
|
391
|
|
|
389
|
|
|||
Amortization of intangible assets
|
140
|
|
|
318
|
|
|
384
|
|
|||
Insurance
|
391
|
|
|
375
|
|
|
373
|
|
|||
Supplies
|
275
|
|
|
294
|
|
|
259
|
|
|||
Marketing
|
302
|
|
|
280
|
|
|
225
|
|
|||
Other expenses
|
1,983
|
|
|
1,946
|
|
|
2,151
|
|
|||
|
$
|
6,583
|
|
|
$
|
6,492
|
|
|
$
|
7,052
|
|
|
|
|
|
|
|
|
|
|
To Be Well Capitalized
Under Prompt
|
|||||||||||
|
|
|
|
|
For Capital
|
|
Corrective
|
|||||||||||||
|
Actual
|
|
Adequacy Purposes
|
|
Action Provisions
|
|||||||||||||||
(Dollars in thousands)
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
As of December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Common equity Tier 1
|
$
|
150,725
|
|
|
10.99
|
%
|
|
$
|
61,579
|
|
|
4.50
|
%
|
|
$
|
88,948
|
|
|
6.50
|
%
|
Total capital to risk-weighted assets
|
159,996
|
|
|
11.67
|
%
|
|
109,474
|
|
|
8.00
|
%
|
|
136,843
|
|
|
10.00
|
%
|
|||
Tier 1 capital to risk-weighted assets
|
150,725
|
|
|
10.99
|
%
|
|
82,106
|
|
|
6.00
|
%
|
|
109,474
|
|
|
8.00
|
%
|
|||
Tier 1 leverage capital
|
150,725
|
|
|
10.54
|
%
|
|
57,222
|
|
|
4.00
|
%
|
|
71,528
|
|
|
5.00
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
As of December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Common equity Tier 1
|
$
|
133,548
|
|
|
12.40
|
%
|
|
$
|
48,471
|
|
|
4.50
|
%
|
|
$
|
70,013
|
|
|
6.50
|
%
|
Total capital to risk-weighted assets
|
141,950
|
|
|
13.18
|
%
|
|
86,170
|
|
|
8.00
|
%
|
|
107,712
|
|
|
10.00
|
%
|
|||
Tier 1 capital to risk-weighted assets
|
133,548
|
|
|
12.40
|
%
|
|
64,627
|
|
|
6.00
|
%
|
|
86,170
|
|
|
8.00
|
%
|
|||
Tier 1 leverage capital
|
133,548
|
|
|
11.74
|
%
|
|
45,516
|
|
|
4.00
|
%
|
|
56,894
|
|
|
5.00
|
%
|
|
|
|
|
|
|
|
|
|
To Be Well Capitalized
Under Prompt
|
||||||||
|
|
|
|
|
For Capital
|
|
Corrective
|
||||||||||
|
Actual
|
|
Adequacy Purposes
|
|
Action Provisions
|
||||||||||||
(Dollars in thousands)
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
||||||
As of December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Common equity Tier 1
|
$
|
133,046
|
|
|
9.70
|
%
|
|
$
|
61,604
|
|
|
4.50
|
%
|
|
N/A
|
|
N/A
|
Total capital to risk-weighted assets
|
160,317
|
|
|
11.69
|
%
|
|
109,519
|
|
|
8.00
|
%
|
|
N/A
|
|
N/A
|
||
Tier 1 capital to risk-weighted assets
|
151,046
|
|
|
11.01
|
%
|
|
82,139
|
|
|
6.00
|
%
|
|
N/A
|
|
N/A
|
||
Tier 1 leverage capital
|
151,046
|
|
|
10.56
|
%
|
|
57,245
|
|
|
4.00
|
%
|
|
N/A
|
|
N/A
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
As of December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Common equity Tier 1
|
$
|
115,537
|
|
|
10.72
|
%
|
|
$
|
48,496
|
|
|
4.50
|
%
|
|
N/A
|
|
N/A
|
Total capital to risk-weighted assets
|
141,939
|
|
|
13.17
|
%
|
|
86,214
|
|
|
8.00
|
%
|
|
N/A
|
|
N/A
|
||
Tier 1 capital to risk-weighted assets
|
133,537
|
|
|
12.39
|
%
|
|
64,661
|
|
|
6.00
|
%
|
|
N/A
|
|
N/A
|
||
Tier 1 leverage capital
|
133,537
|
|
|
11.73
|
%
|
|
45,538
|
|
|
4.00
|
%
|
|
N/A
|
|
N/A
|
Level 1.
|
|
Level 2.
|
|
Level 3.
|
|
|
December 31, 2019
|
||||||||||||||
(In thousands)
|
Level 1
Inputs
|
|
Level 2
Inputs
|
|
Level 3
Inputs
|
|
Total Fair
Value
|
||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury Securities and obligations of U.S. Government
sponsored corporations ("GSE")
|
$
|
—
|
|
|
$
|
764
|
|
|
$
|
—
|
|
|
$
|
764
|
|
Residential collateralized mortgage obligations - GSE
|
—
|
|
|
53,175
|
|
|
—
|
|
|
53,175
|
|
||||
Residential mortgage backed securities-GSE
|
—
|
|
|
18,387
|
|
|
—
|
|
|
18,387
|
|
||||
Obligations of state and political subdivisions
|
—
|
|
|
33,519
|
|
|
—
|
|
|
33,519
|
|
||||
Trust preferred debt securities - single issuer
|
—
|
|
|
1,442
|
|
|
—
|
|
|
1,442
|
|
||||
Corporate debt securities
|
11,151
|
|
|
12,128
|
|
|
—
|
|
|
23,279
|
|
||||
Other debt securities
|
—
|
|
|
25,216
|
|
|
—
|
|
|
25,216
|
|
||||
Interest rate lock derivative
|
—
|
|
|
159
|
|
|
—
|
|
|
159
|
|
||||
Total
|
$
|
11,151
|
|
|
$
|
144,790
|
|
|
$
|
—
|
|
|
$
|
155,941
|
|
|
December 31, 2018
|
||||||||||||||
(In thousands)
|
Level 1
Inputs
|
|
Level 2
Inputs
|
|
Level 3
Inputs
|
|
Total Fair
Value
|
||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury Securities and obligations of U.S Government
sponsored corporations (“GSE”)
|
$
|
—
|
|
|
$
|
2,952
|
|
|
$
|
—
|
|
|
$
|
2,952
|
|
Residential collateralized mortgage obligations - GSE
|
—
|
|
|
48,183
|
|
|
—
|
|
|
48,183
|
|
||||
Residential mortgage backed securities – GSE
|
—
|
|
|
13,882
|
|
|
—
|
|
|
13,882
|
|
||||
Obligations of state and political subdivisions
|
—
|
|
|
23,342
|
|
|
—
|
|
|
23,342
|
|
||||
Trust preferred debt securities - single issuer
|
—
|
|
|
1,329
|
|
|
—
|
|
|
1,329
|
|
||||
Corporate debt securities
|
16,388
|
|
|
10,898
|
|
|
—
|
|
|
27,286
|
|
||||
Other debt securities
|
—
|
|
|
15,248
|
|
|
—
|
|
|
15,248
|
|
||||
Interest rate lock derivative
|
—
|
|
|
79
|
|
|
—
|
|
|
79
|
|
||||
Total
|
$
|
16,388
|
|
|
$
|
115,913
|
|
|
$
|
—
|
|
|
$
|
132,301
|
|
(In thousands)
|
Level 1
Inputs
|
|
Level 2
Inputs
|
|
Level 3
Inputs
|
|
Total Fair
Value
|
||||||
December 31, 2019
|
|
|
|
|
|
|
|
||||||
Impaired loans
|
—
|
|
|
—
|
|
|
$
|
7,092
|
|
|
$
|
7,092
|
|
Other real estate owned
|
—
|
|
|
—
|
|
|
93
|
|
|
93
|
|
||
|
|
|
|
|
|
|
|
||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||
Impaired loans
|
—
|
|
|
—
|
|
|
$
|
6,857
|
|
|
$
|
6,857
|
|
Other real estate owned
|
—
|
|
|
—
|
|
|
1,460
|
|
|
1,460
|
|
(Dollars in thousands)
|
Fair Value
Estimate
|
|
Valuation
Techniques
|
|
Unobservable
Input
|
|
Range (Weighted
Average)
|
||
December 31, 2019
|
|
|
|
|
|
|
|
||
Impaired loans
|
$
|
7,092
|
|
|
Appraisal of collateral (1)
|
|
Appraisal adjustments (2)
|
|
0.1%-40.4% (12.6%)
|
Other real estate owned
|
93
|
|
|
Appraisal of collateral (1)
|
|
Appraisal adjustments (2)
|
|
47.0% (47.0%)
|
|
|
|
|
|
|
|
|
|
||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
Impaired loans
|
$
|
6,857
|
|
|
Appraisal of collateral (1)
|
|
Appraisal adjustments (2)
|
|
0.5%-100% (28.2%)
|
Other real estate owned
|
$
|
1,460
|
|
|
Appraisal of collateral (1)
|
|
Appraisal adjustments (2)
|
|
47%-80% (63.5%)
|
(1)
|
Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs that are not identifiable.
|
(2)
|
Includes qualitative adjustments by management and estimated liquidation expenses.
|
|
2019
|
||||||||||||||||||
(In thousands)
|
Carrying
Value
|
|
Level 1
Inputs
|
|
Level 2
Inputs
|
|
Level 3
Inputs
|
|
Fair
Value
|
||||||||||
Cash and cash equivalents
|
$
|
14,842
|
|
|
$
|
14,842
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,842
|
|
Securities available for sale
|
155,782
|
|
|
11,151
|
|
|
144,631
|
|
|
—
|
|
|
155,782
|
|
|||||
Securities held to maturity
|
76,620
|
|
|
—
|
|
|
78,223
|
|
|
—
|
|
|
78,223
|
|
|||||
Loans held for sale
|
5,927
|
|
|
—
|
|
|
6,093
|
|
|
—
|
|
|
6,093
|
|
|||||
Net loans
|
1,206,757
|
|
|
—
|
|
|
—
|
|
|
1,243,088
|
|
|
1,243,088
|
|
|||||
SBA servicing asset
|
930
|
|
|
—
|
|
|
1,245
|
|
|
—
|
|
|
1,245
|
|
|||||
Interest rate lock derivative
|
159
|
|
|
—
|
|
|
159
|
|
|
—
|
|
|
159
|
|
|||||
Accrued interest receivable
|
4,945
|
|
|
—
|
|
|
4,945
|
|
|
—
|
|
|
4,945
|
|
|||||
FHLB Stock
|
4,176
|
|
|
—
|
|
|
4,176
|
|
|
—
|
|
|
4,176
|
|
|||||
Deposits
|
(1,277,362
|
)
|
|
—
|
|
|
(1,278,166
|
)
|
|
—
|
|
|
(1,278,166
|
)
|
|||||
Short-term borrowings
|
(92,050
|
)
|
|
—
|
|
|
(92,050
|
)
|
|
—
|
|
|
(92,050
|
)
|
|||||
Redeemable subordinated debentures
|
(18,557
|
)
|
|
—
|
|
|
(12,837
|
)
|
|
—
|
|
|
(12,837
|
)
|
|||||
Accrued interest payable
|
(1,592
|
)
|
|
—
|
|
|
(1,592
|
)
|
|
—
|
|
|
(1,592
|
)
|
|
2018
|
||||||||||||||||||
(In thousands)
|
Carrying
Value
|
|
Level 1
Inputs
|
|
Level 2
Inputs
|
|
Level 3
Inputs
|
|
Fair
Value
|
||||||||||
Cash and cash equivalents
|
$
|
16,844
|
|
|
$
|
16,844
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
16,844
|
|
Securities available for sale
|
132,222
|
|
|
16,388
|
|
|
115,834
|
|
|
—
|
|
|
132,222
|
|
|||||
Securities held to maturity
|
79,572
|
|
|
—
|
|
|
80,204
|
|
|
—
|
|
|
80,204
|
|
|||||
Loans held for sale
|
3,020
|
|
|
—
|
|
|
3,141
|
|
|
—
|
|
|
3,141
|
|
|||||
Net loans
|
874,762
|
|
|
—
|
|
|
—
|
|
|
874,742
|
|
|
874,742
|
|
|||||
SBA servicing asset
|
991
|
|
|
—
|
|
|
1,490
|
|
|
—
|
|
|
1,490
|
|
|||||
Interest rate lock derivative
|
79
|
|
|
—
|
|
|
79
|
|
|
—
|
|
|
79
|
|
|||||
Accrued interest receivable
|
3,860
|
|
|
—
|
|
|
3,860
|
|
|
—
|
|
|
3,860
|
|
|||||
FHLB Stock
|
3,929
|
|
|
—
|
|
|
3,929
|
|
|
—
|
|
|
3,929
|
|
|||||
Deposits
|
(950,672
|
)
|
|
—
|
|
|
(949,813
|
)
|
|
—
|
|
|
(949,813
|
)
|
|||||
Short-term borrowings
|
(71,775
|
)
|
|
—
|
|
|
(71,775
|
)
|
|
—
|
|
|
(71,775
|
)
|
|||||
Redeemable subordinated debentures
|
(18,557
|
)
|
|
—
|
|
|
(12,774
|
)
|
|
—
|
|
|
(12,774
|
)
|
|||||
Accrued interest payable
|
(1,228
|
)
|
|
—
|
|
|
(1,228
|
)
|
|
—
|
|
|
(1,228
|
)
|
|
For the Years Ended December 31,
|
||||||||||
(Dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Service charges on deposits:
|
|
|
|
|
|
||||||
Overdraft fees
|
$
|
368
|
|
|
$
|
343
|
|
|
$
|
300
|
|
Other
|
295
|
|
|
295
|
|
|
296
|
|
|||
Interchange income
|
460
|
|
|
405
|
|
|
347
|
|
|||
Other income - in scope
|
412
|
|
|
521
|
|
|
340
|
|
|||
(Loss) gain on sale of OREO
|
(101
|
)
|
|
—
|
|
|
5
|
|
|||
Income on BOLI (1)
|
623
|
|
|
575
|
|
|
522
|
|
|||
Gains on sales of loans, net (1)
|
4,885
|
|
|
4,475
|
|
|
5,149
|
|
|||
Loan servicing fees (1)
|
711
|
|
|
656
|
|
|
576
|
|
|||
Net gains on sales and calls of securities (1)
|
30
|
|
|
12
|
|
|
129
|
|
|||
Gain from bargain purchase (1)
|
—
|
|
|
230
|
|
|
—
|
|
|||
Other income (1)
|
554
|
|
|
406
|
|
|
576
|
|
|||
|
$
|
8,237
|
|
|
$
|
7,918
|
|
|
$
|
8,240
|
|
(In thousands)
|
2019
|
|
2018
|
||||
Operating lease cost:
|
|
|
|
||||
Fixed rent expense and equipment expense
|
$
|
2,021
|
|
|
$
|
2,055
|
|
Short-term lease expense
|
12
|
|
|
—
|
|
||
Net lease cost
|
$
|
2,033
|
|
|
$
|
2,055
|
|
(In thousands)
|
2019
|
|
2018
|
||||
Lease cost - occupancy expense
|
$
|
1,778
|
|
|
$
|
1,801
|
|
Lease cost - other expense
|
255
|
|
|
254
|
|
||
Net lease cost
|
$
|
2,033
|
|
|
$
|
2,055
|
|
|
For the Year Ended December 31,
|
||||||
(In thousands)
|
2019
|
|
2018
|
||||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
|
||||
Operating cash flows from operating leases
|
$
|
1,840
|
|
|
$
|
2,055
|
|
|
|
|
|
||||
Non-cash investing and financing activities:
|
|
|
|
||||
Additions to ROU assets obtained from:
|
|
|
|
||||
New operating lease liabilities
|
|
|
|
||||
Upon adoption
|
$
|
15,674
|
|
|
$
|
—
|
|
New or acquired during the year
|
3,765
|
|
|
—
|
|
|
At December 31,
|
||||||
(In thousands)
|
2019
|
|
2018
|
||||
Due in less than one year
|
$
|
2,070
|
|
|
$
|
1,525
|
|
Due in one year but less than two years
|
2,035
|
|
|
1,392
|
|
||
Due in two years but less than three years
|
2,022
|
|
|
1,245
|
|
||
Due in three years but less than four years
|
1,984
|
|
|
1,008
|
|
||
Due in four years but less than five years
|
1,847
|
|
|
798
|
|
||
Thereafter
|
15,118
|
|
|
2,284
|
|
||
Total future payments
|
$
|
25,076
|
|
|
$
|
8,252
|
|
Less: Implied interest
|
(6,459
|
)
|
|
—
|
|
||
Total lease liability
|
$
|
18,617
|
|
|
$
|
8,252
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Assets:
|
|
|
|
||||
Cash
|
$
|
594
|
|
|
$
|
425
|
|
Investment securities
|
557
|
|
|
557
|
|
||
Investment in subsidiary
|
188,257
|
|
|
145,096
|
|
||
Other assets
|
—
|
|
|
—
|
|
||
Total Assets
|
$
|
189,408
|
|
|
$
|
146,078
|
|
Liabilities And Shareholders’ Equity
|
|
|
|
||||
Other liabilities
|
$
|
273
|
|
|
$
|
436
|
|
Subordinated debentures
|
18,557
|
|
|
18,557
|
|
||
Shareholders’ equity
|
170,578
|
|
|
127,085
|
|
||
Total Liabilities and Shareholders’ Equity
|
$
|
189,408
|
|
|
$
|
146,078
|
|
|
Year ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Income:
|
|
|
|
|
|
||||||
Interest income
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
16
|
|
Dividend income from subsidiary
|
3,369
|
|
|
2,830
|
|
|
1,826
|
|
|||
Total Income
|
3,369
|
|
|
2,830
|
|
|
1,842
|
|
|||
Expense:
|
|
|
|
|
|
||||||
Interest expense
|
748
|
|
|
694
|
|
|
535
|
|
|||
Total Expense
|
748
|
|
|
694
|
|
|
535
|
|
|||
Income before income taxes and equity in undistributed income of subsidiaries
|
2,621
|
|
|
2,136
|
|
|
1,307
|
|
|||
Income tax benefit
|
(155
|
)
|
|
(146
|
)
|
|
(177
|
)
|
|||
Income before equity in undistributed income of subsidiaries
|
2,776
|
|
|
2,282
|
|
|
1,484
|
|
|||
Equity in undistributed income of subsidiaries
|
10,858
|
|
|
9,766
|
|
|
5,444
|
|
|||
Net Income
|
13,634
|
|
|
12,048
|
|
|
6,928
|
|
|||
Equity in other comprehensive income (loss) of subsidiaries
|
2,024
|
|
|
(1,097
|
)
|
|
(27
|
)
|
|||
Comprehensive Income
|
$
|
15,658
|
|
|
$
|
10,951
|
|
|
$
|
6,901
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Operating Activities:
|
|
|
|
|
|
||||||
Net Income
|
$
|
13,634
|
|
|
$
|
12,048
|
|
|
$
|
6,928
|
|
Adjustments:
|
|
|
|
|
|
||||||
Decrease (increase) in other assets
|
—
|
|
|
2,520
|
|
|
(68
|
)
|
|||
Increase (decrease) in other liabilities
|
(163
|
)
|
|
407
|
|
|
(16
|
)
|
|||
Equity in undistributed income of subsidiaries
|
(10,858
|
)
|
|
(9,766
|
)
|
|
(5,444
|
)
|
|||
Net cash provided by operating activities
|
2,613
|
|
|
5,209
|
|
|
1,400
|
|
|||
|
|
|
|
|
|
||||||
Cash Flows From Investing Activities:
|
|
|
|
|
|
||||||
Investment in subsidiary
|
—
|
|
|
—
|
|
|
(130
|
)
|
|||
Cash paid for NJCB merger
|
—
|
|
|
(3,069
|
)
|
|
|
||||
Net cash used in investing activities
|
—
|
|
|
(3,069
|
)
|
|
(130
|
)
|
|||
|
|
|
|
|
|
||||||
Cash Flows From Financing Activities:
|
|
|
|
|
|
||||||
Cash dividend paid
|
(2,593
|
)
|
|
(2,120
|
)
|
|
(1,690
|
)
|
|||
Exercise of stock options
|
149
|
|
|
88
|
|
|
247
|
|
|||
Purchase of treasury stock, net
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net cash used in financing activities
|
(2,444
|
)
|
|
(2,032
|
)
|
|
(1,443
|
)
|
|||
|
|
|
|
|
|
||||||
Net increase (decrease) in cash
|
169
|
|
|
108
|
|
|
(173
|
)
|
|||
Cash at beginning of year
|
425
|
|
|
317
|
|
|
490
|
|
|||
Cash at end of year
|
$
|
594
|
|
|
$
|
425
|
|
|
$
|
317
|
|
Selected 2019 Quarterly Data
|
|
||||||||||||||
(Dollars in thousands, except per share data)
|
December 31
|
|
September 30
|
|
June 30
|
|
March 31
|
||||||||
Interest income
|
$
|
16,748
|
|
|
$
|
14,874
|
|
|
$
|
14,553
|
|
|
$
|
13,915
|
|
Interest expense
|
3,589
|
|
|
3,357
|
|
|
3,120
|
|
|
2,688
|
|
||||
Net interest income
|
13,159
|
|
|
11,517
|
|
|
11,433
|
|
|
11,227
|
|
||||
Provision for loan losses
|
300
|
|
|
350
|
|
|
400
|
|
|
300
|
|
||||
Net interest income after provision for loan losses
|
12,859
|
|
|
11,167
|
|
|
11,033
|
|
|
10,927
|
|
||||
Non-interest income
|
1,995
|
|
|
2,206
|
|
|
2,170
|
|
|
1,866
|
|
||||
Non-interest expense
|
10,453
|
|
|
8,436
|
|
|
8,566
|
|
|
8,094
|
|
||||
Income before income taxes
|
4,401
|
|
|
4,937
|
|
|
4,637
|
|
|
4,699
|
|
||||
Income taxes
|
1,157
|
|
|
1,314
|
|
|
1,267
|
|
|
1,302
|
|
||||
Net income
|
$
|
3,244
|
|
|
$
|
3,623
|
|
|
$
|
3,370
|
|
|
$
|
3,397
|
|
Earnings per common share:(1)
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.34
|
|
|
$
|
0.42
|
|
|
$
|
0.39
|
|
|
$
|
0.39
|
|
Diluted
|
0.34
|
|
|
0.42
|
|
|
0.39
|
|
|
0.39
|
|
Selected 2018 Quarterly Data
|
|
||||||||||||||
(Dollars in thousands, except per share data)
|
December 31
|
|
September 30
|
|
June 30
|
|
March 31
|
||||||||
Interest income
|
$
|
13,754
|
|
|
$
|
13,783
|
|
|
$
|
12,881
|
|
|
$
|
11,055
|
|
Interest expense
|
2,415
|
|
|
2,387
|
|
|
1,863
|
|
|
1,376
|
|
||||
Net interest income
|
11,339
|
|
|
11,396
|
|
|
11,018
|
|
|
9,679
|
|
||||
Provision for loan losses
|
225
|
|
|
225
|
|
|
225
|
|
|
225
|
|
||||
Net interest income after provision for loan losses
|
11,114
|
|
|
11,171
|
|
|
10,793
|
|
|
9,454
|
|
||||
Non-interest income
|
1,836
|
|
|
2,154
|
|
|
2,043
|
|
|
1,885
|
|
||||
Non-interest expense
|
8,295
|
|
|
7,894
|
|
|
10,251
|
|
|
7,645
|
|
||||
Income before income taxes
|
4,655
|
|
|
5,431
|
|
|
2,585
|
|
|
3,694
|
|
||||
Income taxes
|
1,342
|
|
|
1,420
|
|
|
714
|
|
|
841
|
|
||||
Net income
|
$
|
3,313
|
|
|
$
|
4,011
|
|
|
$
|
1,871
|
|
|
$
|
2,853
|
|
Earnings per common share:(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
$
|
0.39
|
|
|
$
|
0.48
|
|
|
$
|
0.22
|
|
|
$
|
0.35
|
|
Diluted
|
0.38
|
|
|
0.46
|
|
|
0.22
|
|
|
0.34
|
|
Selected 2017 Quarterly Data
|
|
|
|
|
|
|
|
||||||||
(Dollars in thousands, except per share data)
|
December 31
|
|
September 30
|
|
June 30
|
|
March 31
|
||||||||
Interest income
|
$
|
11,227
|
|
|
$
|
10,811
|
|
|
$
|
10,142
|
|
|
$
|
9,483
|
|
Interest expense
|
1,418
|
|
|
1,451
|
|
|
1,340
|
|
|
1,289
|
|
||||
Net interest income
|
9,809
|
|
|
9,360
|
|
|
8,802
|
|
|
8,194
|
|
||||
Provision for loan losses
|
150
|
|
|
150
|
|
|
150
|
|
|
150
|
|
||||
Net interest income after provision for loan losses
|
9,659
|
|
|
9,210
|
|
|
8,652
|
|
|
8,044
|
|
||||
Non-interest income
|
1,930
|
|
|
2,112
|
|
|
1,785
|
|
|
2,413
|
|
||||
Non-interest expense
|
8,064
|
|
|
7,609
|
|
|
7,677
|
|
|
7,656
|
|
||||
Income before income taxes
|
3,525
|
|
|
3,713
|
|
|
2,760
|
|
|
2,801
|
|
||||
Income taxes
|
2,951
|
|
|
1,227
|
|
|
841
|
|
|
852
|
|
||||
Net income
|
$
|
574
|
|
|
$
|
2,486
|
|
|
$
|
1,919
|
|
|
$
|
1,949
|
|
Earnings per common share:(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
$
|
0.07
|
|
|
$
|
0.31
|
|
|
$
|
0.24
|
|
|
$
|
0.24
|
|
Diluted
|
0.07
|
|
|
0.30
|
|
|
0.23
|
|
|
0.23
|
|
|
|
1ST CONSTITUTION BANCORP
|
|
|
|
|
|
Date:
|
March 16, 2020
|
By:
|
/s/ ROBERT F. MANGANO
|
|
|
|
Robert F. Mangano
|
|
|
|
President and Chief Executive Officer
|
|
|
|
(Principal Executive Officer)
|
Signature
|
|
Capacity
|
|
Date
|
/s/ ROBERT F. MANGANO |
|
President, Chief Executive Officer and Director
|
|
March 16, 2020
|
Robert F. Mangano
|
|
(Principal Executive Officer)
|
|
|
/s/ STEPHEN J. GILHOOLY
|
|
Senior Vice President, Treasurer and Chief Financial Officer
|
|
March 16, 2020
|
Stephen J. Gilhooly
/s/ NAQI A. NAQVI |
|
(Principal Financial Officer)
Senior Vice President and Chief Accounting Officer
|
|
March 16, 2020
|
Naqi A. Naqvi
|
|
(Principal Accounting Officer)
|
|
|
/s/ CHARLES S. CROW, III
|
|
Chairman of the Board
|
|
March 16, 2020
|
Charles S. Crow, III
/s/ WILLIAM M. RUE |
|
Director
|
|
March 16, 2020
|
William M. Rue
/s/ EDWIN J. PISANI
|
|
Director
|
|
March 16, 2020
|
Edwin J. Pisani
/s/ ANTONIO L. CRUZ |
|
Director
|
|
March 16, 2020
|
Antonio L. Cruz
/s/ ROY D. TARTAGLIA |
|
Director
|
|
March 16, 2020
|
Roy D. Tartaglia
/s/ J. LYNNE CANNON
|
|
Director
|
|
March 16, 2020
|
J. Lynne Cannon
/s/ JAMES G. AARON |
|
Director
|
|
March 16, 2020
|
James G. Aaron
/s/ CARMEN M. PENTA |
|
Director
|
|
March 16, 2020
|
Carmen M. Penta
/s/ WILLIAM J. BARRETT
|
|
Director
|
|
March 16, 2020
|
William J. Barrett
/s/ RAYMOND R. CICCONE
|
|
Director
|
|
March 16, 2020
|
Raymond R. Ciccone
|
|
|
|
|
•
|
divide any or all of the remaining authorized but unissued shares of preferred stock into classes and to divide such classes into series;
|
•
|
determine the designation, number of shares, relative rights, preferences and limitations of any class or series of preferred stock;
|
•
|
increase the number of shares of any class or series of preferred stock;
|
•
|
decrease the number of shares in a class or series, but not to a number less than the number of shares of such class or series then outstanding;
|
•
|
change the designation, number of shares, relative rights, preferences and limitations of any class or series; and
|
•
|
determine the relative rights and preferences which are subordinate to, or equal with, the shares of any other class or series.
|
•
|
the dividend rate on shares of such class or series and any restrictions, limitations or conditions upon the payment of such dividends, and whether dividends are cumulative, and the dates on which dividends, if declared, would be payable;
|
•
|
whether the shares of such class or series would be redeemable and, if so, the terms of redemption;
|
•
|
the rights of holders of shares of such class or series in the event of the liquidation, dissolution or winding up of 1st Constitution, whether voluntary or involuntary, or any other distribution of its assets;
|
•
|
whether the shares of such class or series would be subject to the operation of a purchase, retirement or sinking fund and, if so, the terms and conditions thereof;
|
•
|
whether the shares of such class or series would be convertible into shares of any other class or series of the same or any other class, and if so, the terms of such conversion; and
|
•
|
the extent of voting powers, if any, of the shares of such class or series.
|
104947950.3
|
|
|
_____
|
by surrender of shares of the Company’s common stock with a value of $_____ represented by certificate number_____, duly endorsed for transfer to the Company with signature guaranteed, which may be (i) shares which were received by me upon exercise of one or more incentive stock options, but only if such shares had been held by me for a least the greater of (A) two years from the date the incentive stock options were granted or (B) one year after the transfer of shares to me, (ii) shares which were received by me upon exercise of one or more nonqualified stock options, but only if such shares had been held by me for at least six months, or (iii) shares which were received by me upon the vesting of one or more shares of restricted stock of the Company.
|
_____
|
by surrender of shares of the Company’s common stock with a value of $_____ represented by certificate number_____, duly endorsed for transfer to the Company with signature guaranteed, which may be (i) shares which were received by me upon exercise of one or more incentive stock options, but only if such shares had been held by me for a least the greater of (A) two years from the date the incentive stock options were granted or (B) one year after the transfer of shares to me, (ii) shares which were received by me upon exercise of one or more nonqualified stock options, but only if such shares had been held by me for at least six months, or (iii) shares which were received by me upon the vesting of one or more shares of restricted stock of the Company.
|
Name of Subsidiary
|
|
Other Names Under Which
Subsidiary Conducts Business
|
|
State or Other Jurisdiction of
Incorporation or Organization
|
|
|
|
|
|
1st Constitution Bank
|
|
N/A
|
|
New Jersey
|
|
|
|
|
|
1st Constitution Capital Trust II
|
|
N/A
|
|
Delaware
|
|
|
|
|
|
1st Constitution Investment Company of New Jersey, Inc.
|
|
N/A
|
|
New Jersey
|
|
|
|
|
|
FCB Assets Holdings, Inc.
|
|
N/A
|
|
New Jersey
|
|
|
|
|
|
204 South Newman Street LLC.
|
|
N/A
|
|
New Jersey
|
|
|
|
|
|
249 New York Avenue LLC
|
|
N/A
|
|
New Jersey
|
|
|
|
|
|
1.
|
I have reviewed this annual report on Form 10-K of 1st Constitution Bancorp;
|
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:
|
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):
|
1.
|
I have reviewed this annual report on Form 10-K of 1st Constitution Bancorp;
|
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:
|
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):
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|