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West Virginia
(State or other jurisdiction of incorporation or organization)
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20-0034461
(I.R.S. Employer Identification No.)
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Page
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September 30,
2016 |
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December 31,
2015 |
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(Unaudited)
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(Note 1)
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ASSETS
|
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|
||||
Cash and cash equivalents:
|
|
|
|
||||
Cash and due from banks
|
$
|
15,537
|
|
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$
|
14,302
|
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Interest bearing balances with banks
|
13,267
|
|
|
14,831
|
|
||
Total cash and cash equivalents
|
28,804
|
|
|
29,133
|
|
||
Certificates of deposit with other banks
|
7,174
|
|
|
13,150
|
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||
Investment Securities:
|
|
|
|
||||
Securities available-for-sale
|
152,171
|
|
|
70,256
|
|
||
Securities held-to-maturity (fair value of $0 for 2016 and $54,470 for 2015)
|
—
|
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|
52,859
|
|
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Loans held for sale
|
123,109
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|
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102,623
|
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Loans:
|
1,076,073
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1,032,170
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Less: Allowance for loan losses
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(9,150
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)
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(8,006
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)
|
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Net Loans
|
1,066,923
|
|
|
1,024,164
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|
||
Premises and equipment
|
25,440
|
|
|
26,275
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|
||
Bank owned life insurance
|
22,809
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|
22,332
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|
||
Accrued interest receivable and other assets
|
23,685
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25,204
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Goodwill
|
18,480
|
|
|
18,480
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TOTAL ASSETS
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$
|
1,468,595
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|
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$
|
1,384,476
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||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
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|
||||
Deposits:
|
|
|
|
||||
Noninterest bearing
|
$
|
105,799
|
|
|
$
|
80,423
|
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Interest bearing
|
1,020,991
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931,891
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|
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Total deposits
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1,126,790
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1,012,314
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||||
Accrued interest payable and other liabilities
|
19,600
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|
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13,291
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|
||
Repurchase agreements
|
27,192
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27,437
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FHLB and other borrowings
|
136,112
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183,198
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Subordinated debt
|
33,524
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33,524
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Total liabilities
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1,343,218
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1,269,764
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STOCKHOLDERS’ EQUITY
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||||
Preferred stock, par value $1,000; 20,000 authorized and 9,283 issued in 2016 and 2015, respectively (See Footnote 7)
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16,334
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16,334
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|
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Common stock, par value $1; 20,000,000 shares authorized; 8,134,577 and 8,112,998 issued; and 8,083,500 and 8,061,921 outstanding in 2016 and 2015, respectively
|
8,135
|
|
|
8,113
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|
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Additional paid-in capital
|
74,653
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|
|
74,228
|
|
||
Retained earnings
|
29,361
|
|
|
20,054
|
|
||
Accumulated other comprehensive loss
|
(2,022
|
)
|
|
(2,933
|
)
|
||
Treasury Stock, 51,077 shares, at cost
|
(1,084
|
)
|
|
(1,084
|
)
|
||
Total stockholders’ equity
|
125,377
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|
|
114,712
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|
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
1,468,595
|
|
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$
|
1,384,476
|
|
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Nine Months Ended
September 30, |
|
Three Months Ended
September 30, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
INTEREST INCOME
|
|
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|
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||||||||
Interest and fees on loans
|
$
|
37,502
|
|
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$
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29,187
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$
|
12,484
|
|
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$
|
10,584
|
|
Interest on deposits with other banks
|
251
|
|
|
198
|
|
|
81
|
|
|
71
|
|
||||
Interest on investment securities - taxable
|
984
|
|
|
674
|
|
|
342
|
|
|
213
|
|
||||
Interest on tax exempt loans and securities
|
1,748
|
|
|
1,689
|
|
|
616
|
|
|
548
|
|
||||
Total interest income
|
40,485
|
|
|
31,748
|
|
|
13,523
|
|
|
11,416
|
|
||||
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|
||||||||
INTEREST EXPENSE
|
|
|
|
|
|
|
|
||||||||
Interest on deposits
|
5,739
|
|
|
4,554
|
|
|
1,902
|
|
|
1,665
|
|
||||
Interest on repurchase agreements
|
55
|
|
|
62
|
|
|
17
|
|
|
18
|
|
||||
Interest on FHLB and other borrowings
|
861
|
|
|
493
|
|
|
316
|
|
|
159
|
|
||||
Interest on subordinated debt
|
1,664
|
|
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1,648
|
|
|
559
|
|
|
556
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|
||||
Total interest expense
|
8,319
|
|
|
6,757
|
|
|
2,794
|
|
|
2,398
|
|
||||
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||||||||
NET INTEREST INCOME
|
32,166
|
|
|
24,991
|
|
|
10,729
|
|
|
9,018
|
|
||||
Provision for loan losses
|
2,975
|
|
|
1,856
|
|
|
1,075
|
|
|
636
|
|
||||
Net interest income after provision for loan losses
|
29,191
|
|
|
23,135
|
|
|
9,654
|
|
|
8,382
|
|
||||
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|
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||||||||
NONINTEREST INCOME
|
|
|
|
|
|
|
|
||||||||
Service charges on deposit accounts
|
557
|
|
|
471
|
|
|
199
|
|
|
175
|
|
||||
Income on bank owned life insurance
|
477
|
|
|
492
|
|
|
158
|
|
|
160
|
|
||||
Visa debit card and interchange income
|
892
|
|
|
684
|
|
|
291
|
|
|
244
|
|
||||
Mortgage fee income
|
26,850
|
|
|
23,881
|
|
|
10,668
|
|
|
8,955
|
|
||||
Gain on sale of portfolio loans
|
838
|
|
|
1,119
|
|
|
238
|
|
|
319
|
|
||||
Insurance and investment services income
|
303
|
|
|
276
|
|
|
128
|
|
|
98
|
|
||||
Gain on sale of securities
|
1,082
|
|
|
130
|
|
|
479
|
|
|
4
|
|
||||
Gain on derivatives
|
1,433
|
|
|
67
|
|
|
1
|
|
|
(2,039
|
)
|
||||
Other operating income
|
707
|
|
|
752
|
|
|
364
|
|
|
537
|
|
||||
Total noninterest income
|
33,139
|
|
|
27,872
|
|
|
12,526
|
|
|
8,453
|
|
||||
|
|
|
|
|
|
|
|
||||||||
NONINTEREST EXPENSES
|
|
|
|
|
|
|
|
||||||||
Salary and employee benefits
|
34,427
|
|
|
27,424
|
|
|
12,383
|
|
|
9,284
|
|
||||
Occupancy expense
|
2,737
|
|
|
2,455
|
|
|
898
|
|
|
833
|
|
||||
Equipment depreciation and maintenance
|
1,781
|
|
|
1,482
|
|
|
635
|
|
|
543
|
|
||||
Data processing and communications
|
3,815
|
|
|
2,866
|
|
|
1,434
|
|
|
1,047
|
|
||||
Mortgage processing
|
2,456
|
|
|
2,310
|
|
|
802
|
|
|
774
|
|
||||
Marketing, contributions and sponsorships
|
1,002
|
|
|
1,072
|
|
|
355
|
|
|
391
|
|
||||
Professional fees
|
2,293
|
|
|
2,196
|
|
|
750
|
|
|
919
|
|
||||
Printing, postage and supplies
|
586
|
|
|
552
|
|
|
169
|
|
|
205
|
|
||||
Insurance, tax and assessment expense
|
1,106
|
|
|
1,202
|
|
|
374
|
|
|
393
|
|
||||
Travel, entertainment, dues and subscriptions
|
1,212
|
|
|
1,147
|
|
|
393
|
|
|
451
|
|
||||
Other operating expenses
|
980
|
|
|
477
|
|
|
546
|
|
|
(84
|
)
|
||||
Total noninterest expense
|
52,395
|
|
|
43,183
|
|
|
18,739
|
|
|
14,756
|
|
||||
Income from continuing operations, before income taxes
|
9,935
|
|
|
7,824
|
|
|
3,441
|
|
|
2,079
|
|
||||
Income tax expense - continuing operations
|
3,265
|
|
|
2,475
|
|
|
1,131
|
|
|
569
|
|
||||
Net Income from continuing operations
|
6,670
|
|
|
5,349
|
|
|
2,310
|
|
|
1,510
|
|
||||
Income from discontinued operations, before income taxes
|
6,346
|
|
|
108
|
|
|
—
|
|
|
(167
|
)
|
||||
Income tax expense - discontinued operations
|
2,411
|
|
|
43
|
|
|
—
|
|
|
(63
|
)
|
||||
Net Income from discontinued operations
|
3,935
|
|
|
65
|
|
|
—
|
|
|
(104
|
)
|
||||
Net Income
|
$
|
10,605
|
|
|
$
|
5,414
|
|
|
$
|
2,310
|
|
|
$
|
1,406
|
|
Preferred dividends
|
814
|
|
|
430
|
|
|
314
|
|
|
145
|
|
||||
Net Income available to common shareholders
|
$
|
9,791
|
|
|
$
|
4,984
|
|
|
$
|
1,996
|
|
|
$
|
1,261
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share from continuing operations - basic
|
$
|
0.73
|
|
|
$
|
0.61
|
|
|
$
|
0.25
|
|
|
$
|
0.17
|
|
Earnings per share from discontinued operations - basic
|
$
|
0.49
|
|
|
$
|
0.01
|
|
|
$
|
—
|
|
|
$
|
(0.01
|
)
|
Earnings per common shareholder - basic
|
$
|
1.22
|
|
|
$
|
0.62
|
|
|
$
|
0.25
|
|
|
$
|
0.16
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share from continuing operations - diluted
|
$
|
0.68
|
|
|
$
|
0.60
|
|
|
$
|
0.24
|
|
|
$
|
0.17
|
|
Earnings per share from discontinued operations - diluted
|
$
|
0.40
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(0.01
|
)
|
Earnings per common shareholder - diluted
|
$
|
1.08
|
|
|
$
|
0.60
|
|
|
$
|
0.24
|
|
|
$
|
0.16
|
|
|
|
|
|
|
|
|
|
||||||||
Cash dividends declared
|
$
|
0.06
|
|
|
$
|
0.06
|
|
|
$
|
0.02
|
|
|
$
|
0.02
|
|
Weighted average shares outstanding - basic
|
8,073,644
|
|
|
7,998,203
|
|
|
8,080,690
|
|
|
8,023,549
|
|
||||
Weighted average shares outstanding - diluted
|
9,935,209
|
|
|
9,961,233
|
|
|
10,434,344
|
|
|
8,176,304
|
|
|
Nine Months Ended
September 30, |
|
Three Months Ended
September 30, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net Income
|
$
|
10,605
|
|
|
$
|
5,414
|
|
|
$
|
2,310
|
|
|
$
|
1,406
|
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Unrealized holding gains (losses) during the year
|
1,492
|
|
|
549
|
|
|
(728
|
)
|
|
433
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Unrealized holding gains during the year related to reclassified held-to-maturity securities
|
1,825
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income tax effect
|
(1,327
|
)
|
|
(220
|
)
|
|
291
|
|
|
(174
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Reclassification adjustment for gain recognized in income
|
(813
|
)
|
|
(130
|
)
|
|
(479
|
)
|
|
(4
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Reclassification adjustment for gain recognized in income related to reclassified held-to-maturity securities
|
(269
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income tax effect
|
433
|
|
|
52
|
|
|
192
|
|
|
2
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Change in defined benefit pension plan
|
(717
|
)
|
|
127
|
|
|
100
|
|
|
(400
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Income tax effect
|
287
|
|
|
(51
|
)
|
|
(40
|
)
|
|
160
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total other comprehensive income
|
911
|
|
|
327
|
|
|
(664
|
)
|
|
17
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive income
|
$
|
11,516
|
|
|
$
|
5,741
|
|
|
$
|
1,646
|
|
|
$
|
1,423
|
|
|
Preferred
Stock |
|
Common
Stock |
|
Additional
Paid-in Capital |
|
Retained
Earnings |
|
Accumulated
Other Comprehensive (Loss) |
|
Treasury
Stock |
|
Total
Stockholders' Equity |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance December 31, 2014
|
$
|
16,334
|
|
|
$
|
8,034
|
|
|
$
|
74,342
|
|
|
$
|
14,454
|
|
|
$
|
(2,642
|
)
|
|
$
|
(1,084
|
)
|
|
$
|
109,438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net Income
|
—
|
|
|
—
|
|
|
—
|
|
|
5,414
|
|
|
—
|
|
|
—
|
|
|
5,414
|
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
327
|
|
|
—
|
|
|
327
|
|
|||||||
Cash dividends paid ($0.06 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(480
|
)
|
|
—
|
|
|
—
|
|
|
(480
|
)
|
|||||||
Dividends on preferred stock (See Footnote 7)
|
—
|
|
|
—
|
|
|
—
|
|
|
(430
|
)
|
|
—
|
|
|
—
|
|
|
(430
|
)
|
|||||||
Stock based compensation
|
—
|
|
|
—
|
|
|
308
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
308
|
|
|||||||
Common stock options exercised
|
—
|
|
|
79
|
|
|
(527
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(448
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance September 30, 2015
|
$
|
16,334
|
|
|
$
|
8,113
|
|
|
$
|
74,123
|
|
|
$
|
18,958
|
|
|
$
|
(2,315
|
)
|
|
$
|
(1,084
|
)
|
|
$
|
114,129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance December 31, 2015
|
$
|
16,334
|
|
|
$
|
8,113
|
|
|
$
|
74,228
|
|
|
$
|
20,054
|
|
|
$
|
(2,933
|
)
|
|
$
|
(1,084
|
)
|
|
$
|
114,712
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net Income
|
—
|
|
|
—
|
|
|
—
|
|
|
10,605
|
|
|
—
|
|
|
—
|
|
|
10,605
|
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
911
|
|
|
—
|
|
|
911
|
|
|||||||
Cash dividends paid ($0.06 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(484
|
)
|
|
—
|
|
|
—
|
|
|
(484
|
)
|
|||||||
Dividends on preferred stock (See Footnote 7)
|
—
|
|
|
—
|
|
|
—
|
|
|
(814
|
)
|
|
—
|
|
|
—
|
|
|
(814
|
)
|
|||||||
Stock based compensation
|
—
|
|
|
—
|
|
|
415
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
415
|
|
|||||||
Common stock options exercised
|
—
|
|
|
22
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance September 30, 2016
|
$
|
16,334
|
|
|
$
|
8,135
|
|
|
$
|
74,653
|
|
|
$
|
29,361
|
|
|
$
|
(2,022
|
)
|
|
$
|
(1,084
|
)
|
|
$
|
125,377
|
|
|
|
Nine months ended
|
||||||
|
|
September 30,
2016 |
|
September 30,
2015 |
||||
OPERATING ACTIVITIES
|
|
|
|
|
||||
Net Income
|
|
$
|
10,605
|
|
|
$
|
5,414
|
|
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
|
|
|
|
|
|
|
||
Net amortization and accretion of investments
|
|
689
|
|
|
586
|
|
||
Net amortization of deferred loan fees
|
|
33
|
|
|
(110
|
)
|
||
Provision for loan losses
|
|
2,975
|
|
|
1,856
|
|
||
Depreciation and amortization
|
|
2,547
|
|
|
1,437
|
|
||
Stock based compensation
|
|
415
|
|
|
308
|
|
||
Loans originated for sale
|
|
(1,205,986
|
)
|
|
(1,047,432
|
)
|
||
Proceeds of loans sold
|
|
1,212,350
|
|
|
1,067,793
|
|
||
Mortgage fee income
|
|
(26,850
|
)
|
|
(23,881
|
)
|
||
Gain on sale of securities
|
|
(1,084
|
)
|
|
(130
|
)
|
||
Loss on sale of securities
|
|
2
|
|
|
—
|
|
||
Gain on sale of portfolio loans
|
|
(838
|
)
|
|
(1,119
|
)
|
||
Gain on sale of subsidiary
|
|
(6,926
|
)
|
|
—
|
|
||
Income on bank owned life insurance
|
|
(477
|
)
|
|
(492
|
)
|
||
Deferred taxes
|
|
276
|
|
|
118
|
|
||
Other, net
|
|
3,741
|
|
|
799
|
|
||
Net cash (used in) provided by operating activities
|
|
(8,528
|
)
|
|
5,147
|
|
||
INVESTING ACTIVITIES
|
|
|
|
|
|
|
||
Purchases of investment securities available-for-sale
|
|
(95,497
|
)
|
|
(28,212
|
)
|
||
Maturities/paydowns of investment securities available-for-sale
|
|
13,478
|
|
|
15,601
|
|
||
Maturities/paydowns of investment securities held-to-maturity
|
|
400
|
|
|
865
|
|
||
Sales of investment securities available-for-sale
|
|
55,191
|
|
|
12,912
|
|
||
Sale of investment securities held to maturity
|
|
—
|
|
|
421
|
|
||
Purchases of premises and equipment
|
|
(1,435
|
)
|
|
(1,648
|
)
|
||
Disposals of premises and equipment from sale of subsidiary
|
|
581
|
|
|
—
|
|
||
Net increase in loans
|
|
(44,929
|
)
|
|
(177,798
|
)
|
||
Purchases of restricted bank stock
|
|
(18,064
|
)
|
|
(17,431
|
)
|
||
Redemptions of restricted bank stock
|
|
19,489
|
|
|
16,977
|
|
||
Proceeds from sale of certificates of deposit with banks
|
|
6,472
|
|
|
248
|
|
||
Purchase of certificates of deposit with banks
|
|
(496
|
)
|
|
(1,491
|
)
|
||
Proceeds from sale of other real estate owned
|
|
83
|
|
|
1,132
|
|
||
Branch acquisition, net cash acquired
|
|
—
|
|
|
48,292
|
|
||
Proceeds from sale of subsidiary
|
|
7,047
|
|
|
—
|
|
||
Net cash used in investing activities
|
|
(57,680
|
)
|
|
(130,132
|
)
|
||
FINANCING ACTIVITIES
|
|
|
|
|
|
|
||
Net increase in deposits
|
|
114,476
|
|
|
126,331
|
|
||
Net decrease in repurchase agreements
|
|
(245
|
)
|
|
(6,111
|
)
|
||
Net change in short-term FHLB borrowings
|
|
(47,016
|
)
|
|
3,335
|
|
||
Principal payments on FHLB borrowings
|
|
(70
|
)
|
|
(2,154
|
)
|
||
Common stock options exercised
|
|
32
|
|
|
(448
|
)
|
||
Cash dividends paid on common stock
|
|
(484
|
)
|
|
(480
|
)
|
||
Cash dividends paid on preferred stock
|
|
(814
|
)
|
|
(430
|
)
|
||
Net cash provided by financing activities
|
|
65,879
|
|
|
120,043
|
|
||
(Decrease) in cash and cash equivalents
|
|
(329
|
)
|
|
(4,942
|
)
|
||
Cash and cash equivalents at beginning of period
|
|
29,133
|
|
|
30,077
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
28,804
|
|
|
$
|
25,135
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
|
|
|
||
Loans transferred to other real estate owned
|
|
$
|
127
|
|
|
$
|
174
|
|
Cashless stock options exercised
|
|
$
|
16
|
|
|
$
|
1,180
|
|
Cash payments for:
|
|
|
|
|
|
|
||
Interest on deposits, repurchase agreements and borrowings
|
|
$
|
8,084
|
|
|
$
|
8,278
|
|
Income taxes
|
|
$
|
4,382
|
|
|
$
|
2,400
|
|
(Dollars in thousands)
|
|
Amortized
Cost |
|
Unrealized
Gain |
|
Unrealized
Loss |
|
Fair
Value |
||||||||
Municipal securities
|
|
$
|
52,859
|
|
|
$
|
1,699
|
|
|
$
|
(88
|
)
|
|
$
|
54,470
|
|
Total investment securities held–to-maturity
|
|
$
|
52,859
|
|
|
$
|
1,699
|
|
|
$
|
(88
|
)
|
|
$
|
54,470
|
|
(Dollars in thousands)
|
|
Amortized
Cost |
|
Unrealized
Gain |
|
Unrealized
Loss |
|
Fair
Value |
||||||||
U.S. Agency securities
|
|
$
|
19,931
|
|
|
$
|
5
|
|
|
$
|
(92
|
)
|
|
$
|
19,844
|
|
U.S. Sponsored Mortgage-backed securities
|
|
55,786
|
|
|
188
|
|
|
(310
|
)
|
|
55,664
|
|
||||
Municipal securities
|
|
67,876
|
|
|
1,799
|
|
|
(125
|
)
|
|
69,550
|
|
||||
Total debt securities
|
|
143,593
|
|
|
1,992
|
|
|
(527
|
)
|
|
145,058
|
|
||||
Equity and other securities
|
|
6,948
|
|
|
165
|
|
|
—
|
|
|
7,113
|
|
||||
Total investment securities available-for-sale
|
|
$
|
150,541
|
|
|
$
|
2,157
|
|
|
$
|
(527
|
)
|
|
$
|
152,171
|
|
(Dollars in thousands)
|
|
Amortized
Cost |
|
Unrealized
Gain |
|
Unrealized
Loss |
|
Fair
Value |
||||||||
U.S. Agency securities
|
|
$
|
29,532
|
|
|
$
|
—
|
|
|
$
|
(181
|
)
|
|
$
|
29,351
|
|
U.S. Sponsored Mortgage-backed securities
|
|
34,246
|
|
|
1
|
|
|
(533
|
)
|
|
33,714
|
|
||||
Municipal securities
|
|
1,775
|
|
|
23
|
|
|
—
|
|
|
1,798
|
|
||||
Total debt securities
|
|
65,553
|
|
|
24
|
|
|
(714
|
)
|
|
64,863
|
|
||||
Equity and other securities
|
|
5,309
|
|
|
95
|
|
|
(11
|
)
|
|
5,393
|
|
||||
Total investment securities available-for-sale
|
|
$
|
70,862
|
|
|
$
|
119
|
|
|
$
|
(725
|
)
|
|
$
|
70,256
|
|
|
Available for sale
|
||||||
(Dollars in thousands)
|
Amortized
Cost |
|
Fair
Value |
||||
Within one year
|
$
|
1,287
|
|
|
$
|
1,294
|
|
After one year, but within five
|
5,278
|
|
|
5,416
|
|
||
After five years, but within ten
|
15,473
|
|
|
15,754
|
|
||
After ten years
|
121,555
|
|
|
122,594
|
|
||
Total
|
$
|
143,593
|
|
|
$
|
145,058
|
|
Description and number of positions
|
|
Less than 12 months
|
|
12 months or more
|
||||||||||||
(Dollars in thousands)
|
|
Fair Value
|
|
Unrealized Loss
|
|
Fair Value
|
|
Unrealized Loss
|
||||||||
U.S. Agency securities (9)
|
|
$
|
10,990
|
|
|
$
|
(92
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
U.S. Sponsored Mortgage-backed securities (17)
|
|
13,130
|
|
|
(62
|
)
|
|
17,733
|
|
|
(248
|
)
|
||||
Municipal securities (23)
|
|
11,042
|
|
|
(125
|
)
|
|
—
|
|
|
—
|
|
||||
Equity and other securities (0)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
$
|
35,162
|
|
|
$
|
(279
|
)
|
|
$
|
17,733
|
|
|
$
|
(248
|
)
|
Description and number of positions
|
|
Less than 12 months
|
|
12 months or more
|
||||||||||||
(Dollars in thousands)
|
|
Fair Value
|
|
Unrealized Loss
|
|
Fair Value
|
|
Unrealized Loss
|
||||||||
U.S. Agency securities (9)
|
|
$
|
28,351
|
|
|
$
|
(181
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
U.S. Sponsored Mortgage-backed securities (19)
|
|
20,647
|
|
|
(233
|
)
|
|
11,862
|
|
|
(300
|
)
|
||||
Municipal securities (22)
|
|
3,827
|
|
|
(32
|
)
|
|
5,559
|
|
|
(56
|
)
|
||||
Equity and other securities (1)
|
|
2,489
|
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
||||
|
|
$
|
55,314
|
|
|
$
|
(457
|
)
|
|
$
|
17,421
|
|
|
$
|
(356
|
)
|
(Dollars in thousands)
|
|
Commercial
|
|
Residential
|
|
Home
Equity |
|
Consumer
|
|
Total
|
||||||||||
ALL balance June 30, 2016
|
|
$
|
6,956
|
|
|
$
|
1,011
|
|
|
$
|
758
|
|
|
$
|
366
|
|
|
$
|
9,091
|
|
Charge-offs
|
|
(768
|
)
|
|
—
|
|
|
—
|
|
|
(250
|
)
|
|
(1,018
|
)
|
|||||
Recoveries
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Provision
|
|
967
|
|
|
11
|
|
|
2
|
|
|
95
|
|
|
1,075
|
|
|||||
ALL balance September 30, 2016
|
|
$
|
7,156
|
|
|
$
|
1,023
|
|
|
$
|
760
|
|
|
$
|
211
|
|
|
$
|
9,150
|
|
(Dollars in thousands)
|
|
Commercial
|
|
Residential
|
|
Home
Equity |
|
Consumer
|
|
Total
|
||||||||||
ALL balance December 31, 2015
|
|
$
|
6,066
|
|
|
$
|
1,095
|
|
|
$
|
715
|
|
|
$
|
130
|
|
|
$
|
8,006
|
|
Charge-offs
|
|
(1,448
|
)
|
|
(124
|
)
|
|
—
|
|
|
(272
|
)
|
|
(1,844
|
)
|
|||||
Recoveries
|
|
3
|
|
|
2
|
|
|
7
|
|
|
1
|
|
|
13
|
|
|||||
Provision
|
|
2,535
|
|
|
50
|
|
|
38
|
|
|
352
|
|
|
2,975
|
|
|||||
ALL balance September 30, 2016
|
|
$
|
7,156
|
|
|
$
|
1,023
|
|
|
$
|
760
|
|
|
$
|
211
|
|
|
$
|
9,150
|
|
Individually evaluated for impairment
|
|
$
|
1,288
|
|
|
$
|
38
|
|
|
$
|
—
|
|
|
$
|
20
|
|
|
$
|
1,346
|
|
Collectively evaluated for impairment
|
|
$
|
5,868
|
|
|
$
|
985
|
|
|
$
|
760
|
|
|
$
|
191
|
|
|
$
|
7,804
|
|
(Dollars in thousands)
|
|
Commercial
|
|
Residential
|
|
Home Equity
|
|
Consumer
|
|
Total
|
||||||||||
Individually evaluated for impairment
|
|
$
|
10,922
|
|
|
$
|
673
|
|
|
$
|
51
|
|
|
$
|
141
|
|
|
$
|
11,787
|
|
Collectively evaluated for impairment
|
|
739,122
|
|
|
242,814
|
|
|
67,788
|
|
|
14,562
|
|
|
1,064,286
|
|
|||||
Total Loans
|
|
$
|
750,044
|
|
|
$
|
243,487
|
|
|
$
|
67,839
|
|
|
$
|
14,703
|
|
|
$
|
1,076,073
|
|
(Dollars in thousands)
|
|
Commercial
|
|
Residential
|
|
Home
Equity |
|
Consumer
|
|
Total
|
||||||||||
ALL balance June 30, 2015
|
|
$
|
5,201
|
|
|
$
|
1,018
|
|
|
$
|
632
|
|
|
$
|
196
|
|
|
$
|
7,047
|
|
Charge-offs
|
|
(299
|
)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(304
|
)
|
|||||
Recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
9
|
|
|||||
Provision
|
|
515
|
|
|
101
|
|
|
78
|
|
|
(58
|
)
|
|
636
|
|
|||||
ALL balance September 30, 2015
|
|
$
|
5,417
|
|
|
$
|
1,119
|
|
|
$
|
710
|
|
|
$
|
142
|
|
|
$
|
7,388
|
|
(Dollars in thousands)
|
|
Commercial
|
|
Residential
|
|
Home
Equity |
|
Consumer
|
|
Total
|
||||||||||
ALL balance December 31, 2014
|
|
$
|
4,363
|
|
|
$
|
962
|
|
|
$
|
691
|
|
|
$
|
207
|
|
|
$
|
6,223
|
|
Charge-offs
|
|
(708
|
)
|
|
(14
|
)
|
|
—
|
|
|
(5
|
)
|
|
(727
|
)
|
|||||
Recoveries
|
|
21
|
|
|
1
|
|
|
1
|
|
|
13
|
|
|
36
|
|
|||||
Provision
|
|
1,741
|
|
|
170
|
|
|
18
|
|
|
(73
|
)
|
|
1,856
|
|
|||||
ALL balance September 30, 2015
|
|
$
|
5,417
|
|
|
$
|
1,119
|
|
|
$
|
710
|
|
|
$
|
142
|
|
|
$
|
7,388
|
|
Individually evaluated for impairment
|
|
$
|
595
|
|
|
$
|
301
|
|
|
$
|
28
|
|
|
$
|
6
|
|
|
$
|
930
|
|
Collectively evaluated for impairment
|
|
$
|
4,822
|
|
|
$
|
818
|
|
|
$
|
682
|
|
|
$
|
136
|
|
|
$
|
6,458
|
|
(Dollars in thousands)
|
|
Commercial
|
|
Residential
|
|
Equity
|
|
Consumer
|
|
Total
|
||||||||||
Individually evaluated for impairment
|
|
$
|
12,036
|
|
|
$
|
849
|
|
|
$
|
28
|
|
|
$
|
6
|
|
|
$
|
12,919
|
|
Collectively evaluated for impairment
|
|
687,623
|
|
|
210,997
|
|
|
65,617
|
|
|
17,677
|
|
|
981,914
|
|
|||||
Total Loans
|
|
$
|
699,659
|
|
|
$
|
211,846
|
|
|
$
|
65,645
|
|
|
$
|
17,683
|
|
|
$
|
994,833
|
|
|
|
Impaired Loans with
Specific Allowance |
|
Impaired
Loans with No Specific Allowance |
|
Total Impaired Loans
|
||||||||||||||
September 30, 2016
|
|
Recorded
Investment |
|
Related
Allowance |
|
Recorded
Investment |
|
Recorded
Investment |
|
Unpaid
Principal Balance |
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial Business
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,756
|
|
|
$
|
3,756
|
|
|
$
|
4,521
|
|
Commercial Real Estate
|
|
3,712
|
|
|
1,154
|
|
|
384
|
|
|
4,096
|
|
|
4,719
|
|
|||||
Acquisition & Development
|
|
535
|
|
|
134
|
|
|
2,535
|
|
|
3,070
|
|
|
4,547
|
|
|||||
Total Commercial
|
|
4,247
|
|
|
1,288
|
|
|
6,675
|
|
|
10,922
|
|
|
13,787
|
|
|||||
Residential
|
|
480
|
|
|
38
|
|
|
193
|
|
|
673
|
|
|
678
|
|
|||||
Home Equity
|
|
—
|
|
|
—
|
|
|
51
|
|
|
51
|
|
|
51
|
|
|||||
Consumer
|
|
20
|
|
|
20
|
|
|
121
|
|
|
141
|
|
|
388
|
|
|||||
Total impaired loans
|
|
$
|
4,747
|
|
|
$
|
1,346
|
|
|
$
|
7,040
|
|
|
$
|
11,787
|
|
|
$
|
14,904
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial Business
|
|
$
|
574
|
|
|
$
|
4
|
|
|
$
|
3,260
|
|
|
$
|
3,834
|
|
|
$
|
3,834
|
|
Commercial Real Estate
|
|
7,587
|
|
|
513
|
|
|
—
|
|
|
7,587
|
|
|
7,587
|
|
|||||
Acquisition & Development
|
|
1,800
|
|
|
191
|
|
|
956
|
|
|
2,756
|
|
|
4,131
|
|
|||||
Total Commercial
|
|
9,961
|
|
|
708
|
|
|
4,216
|
|
|
14,177
|
|
|
15,552
|
|
|||||
Residential
|
|
1,045
|
|
|
276
|
|
|
22
|
|
|
1,067
|
|
|
1,067
|
|
|||||
Home Equity
|
|
28
|
|
|
28
|
|
|
—
|
|
|
28
|
|
|
28
|
|
|||||
Consumer
|
|
103
|
|
|
1
|
|
|
—
|
|
|
103
|
|
|
103
|
|
|||||
Total impaired loans
|
|
$
|
11,137
|
|
|
$
|
1,013
|
|
|
$
|
4,238
|
|
|
$
|
15,375
|
|
|
$
|
16,750
|
|
|
Nine Months Ended
September 30, 2016 |
|
Three Months Ended
September 30, 2016 |
||||||||||||||||||||
|
Average
Investment in Impaired Loans |
|
Interest
Income Recognized on Accrual Basis |
|
Interest
Income Recognized on Cash Basis |
|
Average
Investment in Impaired Loans |
|
Interest
Income Recognized on Accrual Basis |
|
Interest
Income Recognized on Cash Basis |
||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial Business
|
$
|
4,296
|
|
|
$
|
116
|
|
|
$
|
104
|
|
|
$
|
4,730
|
|
|
$
|
39
|
|
|
$
|
40
|
|
Commercial Real Estate
|
5,008
|
|
|
84
|
|
|
75
|
|
|
6,864
|
|
|
28
|
|
|
25
|
|
||||||
Acquisition & Development
|
1,927
|
|
|
7
|
|
|
9
|
|
|
2,958
|
|
|
2
|
|
|
3
|
|
||||||
Total Commercial
|
11,231
|
|
|
207
|
|
|
188
|
|
|
14,552
|
|
|
69
|
|
|
68
|
|
||||||
Residential
|
885
|
|
|
15
|
|
|
22
|
|
|
731
|
|
|
5
|
|
|
8
|
|
||||||
Home Equity
|
30
|
|
|
1
|
|
|
1
|
|
|
35
|
|
|
—
|
|
|
—
|
|
||||||
Consumer
|
284
|
|
|
—
|
|
|
—
|
|
|
286
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
$
|
12,430
|
|
|
$
|
223
|
|
|
$
|
211
|
|
|
$
|
15,604
|
|
|
$
|
74
|
|
|
$
|
76
|
|
|
Nine Months Ended
September 30, 2015 |
|
Three Months Ended
September 30, 2015 |
||||||||||||||||||||
|
Average
Investment in Impaired Loans |
|
Interest
Income Recognized on Accrual Basis |
|
Interest
Income Recognized on Cash Basis |
|
Average
Investment in Impaired Loans |
|
Interest
Income Recognized on Accrual Basis |
|
Interest
Income Recognized on Cash Basis |
||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial Business
|
$
|
3,228
|
|
|
$
|
117
|
|
|
$
|
114
|
|
|
$
|
2,945
|
|
|
$
|
39
|
|
|
$
|
39
|
|
Commercial Real Estate
|
6,533
|
|
|
44
|
|
|
37
|
|
|
6,525
|
|
|
15
|
|
|
12
|
|
||||||
Acquisition & Development
|
3,210
|
|
|
7
|
|
|
7
|
|
|
2,957
|
|
|
2
|
|
|
2
|
|
||||||
Total Commercial
|
12,971
|
|
|
168
|
|
|
158
|
|
|
12,427
|
|
|
56
|
|
|
53
|
|
||||||
Residential
|
935
|
|
|
15
|
|
|
11
|
|
|
909
|
|
|
5
|
|
|
7
|
|
||||||
Home Equity
|
28
|
|
|
1
|
|
|
1
|
|
|
28
|
|
|
—
|
|
|
—
|
|
||||||
Consumer
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
$
|
13,935
|
|
|
$
|
184
|
|
|
$
|
170
|
|
|
$
|
13,365
|
|
|
$
|
61
|
|
|
$
|
60
|
|
September 30, 2016
|
|
Pass
|
|
Special
Mention |
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial Business
|
|
$
|
327,404
|
|
|
$
|
3,170
|
|
|
$
|
7,242
|
|
|
$
|
488
|
|
|
$
|
338,304
|
|
Commercial Real Estate
|
|
290,791
|
|
|
5,014
|
|
|
4,809
|
|
|
1,447
|
|
|
302,061
|
|
|||||
Acquisition & Development
|
|
103,633
|
|
|
2,976
|
|
|
1,527
|
|
|
1,543
|
|
|
109,679
|
|
|||||
Total Commercial
|
|
721,828
|
|
|
11,160
|
|
|
13,578
|
|
|
3,478
|
|
|
750,044
|
|
|||||
Residential
|
|
241,028
|
|
|
1,476
|
|
|
484
|
|
|
499
|
|
|
243,487
|
|
|||||
Home Equity
|
|
67,105
|
|
|
650
|
|
|
84
|
|
|
—
|
|
|
67,839
|
|
|||||
Consumer
|
|
14,196
|
|
|
299
|
|
|
27
|
|
|
181
|
|
|
14,703
|
|
|||||
Total Loans
|
|
$
|
1,044,157
|
|
|
$
|
13,585
|
|
|
$
|
14,173
|
|
|
$
|
4,158
|
|
|
$
|
1,076,073
|
|
December 31, 2015
|
|
Pass
|
|
Special
Mention |
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial Business
|
|
$
|
288,549
|
|
|
$
|
7,949
|
|
|
$
|
3,411
|
|
|
$
|
574
|
|
|
$
|
300,483
|
|
Commercial Real Estate
|
|
299,560
|
|
|
9,761
|
|
|
8,436
|
|
|
—
|
|
|
317,757
|
|
|||||
Acquisition & Development
|
|
105,585
|
|
|
2,739
|
|
|
1,223
|
|
|
1,532
|
|
|
111,079
|
|
|||||
Total Commercial
|
|
693,694
|
|
|
20,449
|
|
|
13,070
|
|
|
2,106
|
|
|
729,319
|
|
|||||
Residential
|
|
214,184
|
|
|
1,764
|
|
|
1,168
|
|
|
250
|
|
|
217,366
|
|
|||||
Home Equity
|
|
67,645
|
|
|
416
|
|
|
63
|
|
|
—
|
|
|
68,124
|
|
|||||
Consumer
|
|
16,679
|
|
|
311
|
|
|
371
|
|
|
—
|
|
|
17,361
|
|
|||||
Total Loans
|
|
$
|
992,202
|
|
|
$
|
22,940
|
|
|
$
|
14,672
|
|
|
$
|
2,356
|
|
|
$
|
1,032,170
|
|
September 30, 2016
|
|
Current
|
|
30-59 Days
Past Due |
|
60-89 Days
Past Due |
|
90 Days +
Past Due |
|
Total
Past Due |
|
Total Loans
|
|
Non-
Accrual |
|
90+ Days
Still Accruing |
||||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial Business
|
|
$
|
337,569
|
|
|
$
|
142
|
|
|
$
|
100
|
|
|
$
|
493
|
|
|
$
|
735
|
|
|
$
|
338,304
|
|
|
$
|
493
|
|
|
$
|
—
|
|
Commercial Real Estate
|
|
296,153
|
|
|
1,184
|
|
|
—
|
|
|
4,724
|
|
|
5,908
|
|
|
302,061
|
|
|
2,202
|
|
|
3,659
|
|
||||||||
Acquisition & Development
|
|
106,219
|
|
|
655
|
|
|
—
|
|
|
2,805
|
|
|
3,460
|
|
|
109,679
|
|
|
2,805
|
|
|
—
|
|
||||||||
Total Commercial
|
|
739,941
|
|
|
1,981
|
|
|
100
|
|
|
8,022
|
|
|
10,103
|
|
|
750,044
|
|
|
5,500
|
|
|
3,659
|
|
||||||||
Residential
|
|
243,180
|
|
|
43
|
|
|
83
|
|
|
181
|
|
|
307
|
|
|
243,487
|
|
|
845
|
|
|
—
|
|
||||||||
Home Equity
|
|
67,771
|
|
|
45
|
|
|
—
|
|
|
23
|
|
|
68
|
|
|
67,839
|
|
|
57
|
|
|
—
|
|
||||||||
Consumer
|
|
14,461
|
|
|
82
|
|
|
19
|
|
|
141
|
|
|
242
|
|
|
14,703
|
|
|
141
|
|
|
—
|
|
||||||||
Total
|
|
$
|
1,065,353
|
|
|
$
|
2,151
|
|
|
$
|
202
|
|
|
$
|
8,367
|
|
|
$
|
10,720
|
|
|
$
|
1,076,073
|
|
|
$
|
6,543
|
|
|
$
|
3,659
|
|
December 31, 2015
|
|
Current
|
|
30-59 Days
Past Due |
|
60-89 Days
Past Due |
|
90 Days +
Past Due |
|
Total
Past Due |
|
Total Loans
|
|
Non-
Accrual |
|
90+ Days
Still Accruing |
||||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial Business
|
|
$
|
299,515
|
|
|
$
|
300
|
|
|
$
|
—
|
|
|
$
|
668
|
|
|
$
|
968
|
|
|
$
|
300,483
|
|
|
$
|
687
|
|
|
$
|
—
|
|
Commercial Real Estate
|
|
307,029
|
|
|
436
|
|
|
4,731
|
|
|
5,561
|
|
|
10,728
|
|
|
317,757
|
|
|
5,020
|
|
|
541
|
|
||||||||
Acquisition & Development
|
|
107,607
|
|
|
678
|
|
|
—
|
|
|
2,794
|
|
|
3,472
|
|
|
111,079
|
|
|
2,488
|
|
|
307
|
|
||||||||
Total Commercial
|
|
714,151
|
|
|
1,414
|
|
|
4,731
|
|
|
9,023
|
|
|
15,168
|
|
|
729,319
|
|
|
8,195
|
|
|
848
|
|
||||||||
Residential
|
|
214,326
|
|
|
1,838
|
|
|
576
|
|
|
626
|
|
|
3,040
|
|
|
217,366
|
|
|
803
|
|
|
—
|
|
||||||||
Home Equity
|
|
67,908
|
|
|
23
|
|
|
193
|
|
|
—
|
|
|
216
|
|
|
68,124
|
|
|
36
|
|
|
—
|
|
||||||||
Consumer
|
|
16,921
|
|
|
48
|
|
|
21
|
|
|
371
|
|
|
440
|
|
|
17,361
|
|
|
371
|
|
|
—
|
|
||||||||
Total
|
|
$
|
1,013,306
|
|
|
$
|
3,323
|
|
|
$
|
5,521
|
|
|
$
|
10,020
|
|
|
$
|
18,864
|
|
|
$
|
1,032,170
|
|
|
$
|
9,405
|
|
|
$
|
848
|
|
(Dollars in thousands)
|
|
September 30,
2016 |
|
December 31,
2015 |
||||
Balance at end of period
|
|
$
|
132,901
|
|
|
$
|
179,917
|
|
Average balance
|
|
169,309
|
|
|
121,425
|
|
||
Maximum month-end balance
|
|
210,600
|
|
|
179,917
|
|
||
Weighted-average rate
|
|
0.47
|
%
|
|
0.34
|
%
|
||
Rate at end of period
|
|
0.46
|
%
|
|
0.44
|
%
|
(Dollars in thousands)
|
|
September 30,
2016 |
|
December 31,
2015 |
||||
Balance at end of period
|
|
$
|
27,192
|
|
|
$
|
27,437
|
|
Average balance
|
|
26,238
|
|
|
26,884
|
|
||
Maximum month-end balance
|
|
29,561
|
|
|
32,470
|
|
||
Weighted-average rate
|
|
0.28
|
%
|
|
0.31
|
%
|
||
Rate at end of period
|
|
0.25
|
%
|
|
0.30
|
%
|
Term notes from the FHLB were as follows:
(Dollars in thousands) |
|
September 30,
2016 |
|
December 31,
2015 |
||||
|
|
|
|
|
||||
Fixed interest rate notes, originating between April 2002 and December 2007, due between July 2016 and April 2022, interest of between 4.50% and 5.90% payable monthly
|
|
$
|
2,408
|
|
|
$
|
2,461
|
|
|
|
|
|
|
||||
Amortizing fixed interest rate note, originating February 2007, due February 2022, payable in monthly installments of $5 thousand, including interest of 5.22%
|
|
803
|
|
|
820
|
|
||
|
|
$
|
3,211
|
|
|
$
|
3,281
|
|
(Dollars in thousands)
|
|
September 30,
2016 |
|
December 31,
2015 |
||||
Balance at end of period
|
|
$
|
33,524
|
|
|
$
|
33,524
|
|
Average balance
|
|
33,524
|
|
|
33,524
|
|
||
Maximum month-end balance
|
|
33,524
|
|
|
33,524
|
|
||
Weighted-average rate
|
|
6.59
|
%
|
|
6.55
|
%
|
||
Rate at end of period
|
|
6.61
|
%
|
|
6.57
|
%
|
Year
|
|
Amount
|
||
2016
|
|
$
|
132,924
|
|
2017
|
|
615
|
|
|
2018
|
|
81
|
|
|
2019
|
|
85
|
|
|
2020
|
|
90
|
|
|
Thereafter
|
|
35,841
|
|
|
|
|
$
|
169,636
|
|
|
|
September 30, 2016
|
||||||||||||||
(Dollars in thousands)
|
|
Level I
|
|
Level II
|
|
Level III
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Government Agency securities
|
|
$
|
—
|
|
|
$
|
19,844
|
|
|
$
|
—
|
|
|
$
|
19,844
|
|
U.S. Sponsored Mortgage backed securities
|
|
—
|
|
|
55,664
|
|
|
—
|
|
|
55,664
|
|
||||
Municipal securities
|
|
—
|
|
|
69,550
|
|
|
—
|
|
|
69,550
|
|
||||
Equity and Other securities
|
|
1,096
|
|
|
6,017
|
|
|
—
|
|
|
7,113
|
|
||||
Loans held for sale
|
|
—
|
|
|
123,109
|
|
|
—
|
|
|
123,109
|
|
||||
Interest rate lock commitment
|
|
—
|
|
|
—
|
|
|
3,151
|
|
|
3,151
|
|
||||
Interest rate swap
|
|
—
|
|
|
1,320
|
|
|
—
|
|
|
1,320
|
|
||||
Interest rate cap
|
|
—
|
|
|
100
|
|
|
—
|
|
|
100
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swap
|
|
—
|
|
|
1,320
|
|
|
—
|
|
|
1,320
|
|
||||
Forward sales commitments
|
|
—
|
|
|
829
|
|
|
—
|
|
|
829
|
|
|
|
December 31, 2015
|
||||||||||||||
(Dollars in thousands)
|
|
Level I
|
|
Level II
|
|
Level III
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Government Agency securities
|
|
$
|
—
|
|
|
$
|
29,351
|
|
|
$
|
—
|
|
|
$
|
29,351
|
|
U.S. Sponsored Mortgage backed securities
|
|
—
|
|
|
33,714
|
|
|
—
|
|
|
33,714
|
|
||||
Municipal securities
|
|
—
|
|
|
1,798
|
|
|
—
|
|
|
1,798
|
|
||||
Equity and Other securities
|
|
—
|
|
|
5,393
|
|
|
—
|
|
|
5,393
|
|
||||
Loans held for sale
|
|
—
|
|
|
102,623
|
|
|
—
|
|
|
102,623
|
|
||||
Interest rate lock commitment
|
|
—
|
|
|
—
|
|
|
1,583
|
|
|
1,583
|
|
||||
Interest rate swap
|
|
—
|
|
|
405
|
|
|
—
|
|
|
405
|
|
||||
Interest rate cap
|
|
—
|
|
|
437
|
|
|
—
|
|
|
437
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swap
|
|
—
|
|
|
405
|
|
|
—
|
|
|
405
|
|
Interest Rate Lock Commitments
|
|
Three Months Ended September 30, 2016
|
|
Three Months Ended September 30, 2015
|
|
Nine Months Ended September 30, 2016
|
|
Nine Months Ended September 30, 2015
|
||||||||
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
|
$
|
3,625
|
|
|
$
|
1,653
|
|
|
$
|
1,583
|
|
|
$
|
1,020
|
|
|
|
|
|
|
|
|
|
|
||||||||
Realized and unrealized gains (loss) included in earnings
|
|
(474
|
)
|
|
105
|
|
|
1,568
|
|
|
738
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Balance, end of period
|
|
$
|
3,151
|
|
|
$
|
1,758
|
|
|
$
|
3,151
|
|
|
$
|
1,758
|
|
|
|
September 30, 2016
|
||||||||||||||
(Dollars in thousands)
|
|
Level I
|
|
Level II
|
|
Level III
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Impaired loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,441
|
|
|
$
|
10,441
|
|
Other real estate owned
|
|
—
|
|
|
—
|
|
|
240
|
|
|
$
|
240
|
|
|
|
December 31, 2015
|
||||||||||||||
(Dollars in thousands)
|
|
Level I
|
|
Level II
|
|
Level III
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Impaired loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,362
|
|
|
$
|
14,362
|
|
Other real estate owned
|
|
—
|
|
|
—
|
|
|
239
|
|
|
$
|
239
|
|
September 30, 2016
|
|
Quantitative Information about Level 3 Fair Value Measurements
|
||||||||
(Dollars in thousands)
|
|
Fair Value
|
|
Valuation
Technique |
|
Unobservable
Input |
|
Range
|
||
|
|
|
|
|
|
|
|
|
||
Impaired loans
|
|
$
|
10,441
|
|
|
Appraisal of collateral (1)
|
|
Appraisal adjustments (2)
|
|
20% - 62%
|
|
|
|
|
|
|
Liquidation expense (2)
|
|
5% - 10%
|
||
Other real estate owned
|
|
$
|
240
|
|
|
Appraisal of collateral (1)
|
|
Appraisal adjustments (2)
|
|
20% - 30%
|
|
|
|
|
|
|
Liquidation expense (2)
|
|
5% - 10%
|
December 31, 2015
|
|
Quantitative Information about Level 3 Fair Value Measurements
|
||||||||
(Dollars in thousands)
|
|
Fair Value
|
|
Valuation
Technique |
|
Unobservable
Input |
|
Range
|
||
|
|
|
|
|
|
|
|
|
||
Impaired loans
|
|
$
|
14,362
|
|
|
Appraisal of collateral (1)
|
|
Appraisal adjustments (2)
|
|
20% - 62%
|
|
|
|
|
|
|
Liquidation expense (2)
|
|
5% - 10%
|
||
Other real estate owned
|
|
$
|
239
|
|
|
Appraisal of collateral (1)
|
|
Appraisal adjustments (2)
|
|
20% - 30%
|
|
|
|
|
|
|
Liquidation expense (2)
|
|
5% - 10%
|
|
|
Carrying
Value |
|
Estimated
Fair Value |
|
Quoted Prices in
Active Markets For Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
||||||||||
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
28,804
|
|
|
$
|
28,804
|
|
|
$
|
28,804
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Certificates of deposits with other banks
|
|
7,174
|
|
|
7,316
|
|
|
—
|
|
|
7,316
|
|
|
—
|
|
|||||
Securities available-for-sale
|
|
152,171
|
|
|
152,171
|
|
|
—
|
|
|
152,171
|
|
|
—
|
|
|||||
Loans held for sale
|
|
123,109
|
|
|
123,109
|
|
|
—
|
|
|
123,109
|
|
|
—
|
|
|||||
Loans, net
|
|
1,066,923
|
|
|
1,060,457
|
|
|
—
|
|
|
—
|
|
|
1,060,457
|
|
|||||
Mortgage servicing rights
|
|
433
|
|
|
433
|
|
|
—
|
|
|
—
|
|
|
433
|
|
|||||
Interest rate lock commitment
|
|
3,151
|
|
|
3,151
|
|
|
—
|
|
|
—
|
|
|
3,151
|
|
|||||
Interest rate swap
|
|
1,320
|
|
|
1,320
|
|
|
—
|
|
|
1,320
|
|
|
—
|
|
|||||
Interest rate cap
|
|
100
|
|
|
100
|
|
|
—
|
|
|
100
|
|
|
—
|
|
|||||
Accrued interest receivable
|
|
4,061
|
|
|
4,061
|
|
|
—
|
|
|
979
|
|
|
3,082
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
$
|
1,126,790
|
|
|
$
|
1,148,187
|
|
|
$
|
—
|
|
|
$
|
1,148,187
|
|
|
$
|
—
|
|
Repurchase agreements
|
|
27,192
|
|
|
27,192
|
|
|
—
|
|
|
27,192
|
|
|
—
|
|
|||||
FHLB and other borrowings
|
|
136,112
|
|
|
136,111
|
|
|
—
|
|
|
136,111
|
|
|
—
|
|
|||||
Interest rate swap
|
|
1,320
|
|
|
1,320
|
|
|
—
|
|
|
1,320
|
|
|
—
|
|
|||||
Forward sales commitments
|
|
829
|
|
|
829
|
|
|
—
|
|
|
829
|
|
|
—
|
|
|||||
Accrued interest payable
|
|
735
|
|
|
735
|
|
|
—
|
|
|
735
|
|
|
—
|
|
|||||
Subordinated debt
|
|
33,524
|
|
|
32,172
|
|
|
—
|
|
|
32,172
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
29,133
|
|
|
$
|
29,133
|
|
|
$
|
29,133
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Certificates of deposits with other banks
|
|
13,150
|
|
|
13,270
|
|
|
—
|
|
|
13,270
|
|
|
—
|
|
|||||
Securities available-for-sale
|
|
70,256
|
|
|
70,256
|
|
|
—
|
|
|
70,256
|
|
|
—
|
|
|||||
Securities held-to-maturity
|
|
52,859
|
|
|
54,470
|
|
|
—
|
|
|
54,470
|
|
|
—
|
|
|||||
Loans held for sale
|
|
102,623
|
|
|
102,623
|
|
|
—
|
|
|
102,623
|
|
|
—
|
|
|||||
Loans, net
|
|
1,024,164
|
|
|
1,034,832
|
|
|
—
|
|
|
—
|
|
|
1,034,832
|
|
|||||
Mortgage servicing rights
|
|
956
|
|
|
956
|
|
|
—
|
|
|
—
|
|
|
956
|
|
|||||
Interest rate lock commitment
|
|
1,583
|
|
|
1,583
|
|
|
—
|
|
|
—
|
|
|
1,583
|
|
|||||
Interest rate swap
|
|
405
|
|
|
405
|
|
|
—
|
|
|
405
|
|
|
—
|
|
|||||
Interest rate cap
|
|
437
|
|
|
437
|
|
|
—
|
|
|
437
|
|
|
—
|
|
|||||
Accrued interest receivable
|
|
3,356
|
|
|
3,356
|
|
|
—
|
|
|
723
|
|
|
2,633
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
$
|
1,012,314
|
|
|
$
|
1,015,521
|
|
|
$
|
—
|
|
|
$
|
1,015,521
|
|
|
$
|
—
|
|
Repurchase agreements
|
|
27,437
|
|
|
27,437
|
|
|
—
|
|
|
27,437
|
|
|
—
|
|
|||||
FHLB and other borrowings
|
|
183,198
|
|
|
183,211
|
|
|
—
|
|
|
183,211
|
|
|
—
|
|
|||||
Interest rate swap
|
|
405
|
|
|
405
|
|
|
—
|
|
|
405
|
|
|
—
|
|
|||||
Accrued interest payable
|
|
474
|
|
|
474
|
|
|
—
|
|
|
474
|
|
|
—
|
|
|||||
Subordinated debt
|
|
33,524
|
|
|
32,172
|
|
|
—
|
|
|
32,172
|
|
|
—
|
|
(Dollars in thousands except shares and per share data)
|
|
For the
nine months ended September 30, |
|
For the
three months ended September 30, |
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Numerator for basic earnings per share:
|
|
|
|
|
|
|
|
|
||||||||
Net Income from continuing operations
|
|
$
|
6,670
|
|
|
$
|
5,349
|
|
|
$
|
2,310
|
|
|
$
|
1,510
|
|
Less: Dividends on preferred stock
|
|
814
|
|
|
430
|
|
|
314
|
|
|
145
|
|
||||
Net income from continuing operations available to common shareholders - basic
|
|
5,856
|
|
|
4,919
|
|
|
1,996
|
|
|
1,365
|
|
||||
Net Income from discontinued operations available to common shareholders - basic and diluted
|
|
3,935
|
|
|
65
|
|
|
—
|
|
|
(104
|
)
|
||||
Net Income available to common shareholders
|
|
$
|
9,791
|
|
|
$
|
4,984
|
|
|
$
|
1,996
|
|
|
$
|
1,261
|
|
|
|
|
|
|
|
|
|
|
||||||||
Numerator for diluted earnings per share:
|
|
|
|
|
|
|
|
|
||||||||
Net income from continuing operations available to common shareholders - basic
|
|
$
|
5,856
|
|
|
$
|
4,919
|
|
|
$
|
1,996
|
|
|
$
|
1,365
|
|
Add: Dividends on convertible preferred stock
|
|
—
|
|
|
—
|
|
|
123
|
|
|
—
|
|
||||
Add: Interest on convertible subordinated debt (tax effected)
|
|
924
|
|
|
1,042
|
|
|
350
|
|
|
—
|
|
||||
Net income available to common shareholders from continuing operations - diluted
|
|
$
|
6,780
|
|
|
$
|
5,961
|
|
|
$
|
2,469
|
|
|
$
|
1,365
|
|
|
|
|
|
|
|
|
|
|
||||||||
Denominator:
|
|
|
|
|
|
|
|
|
||||||||
Total average shares outstanding
|
|
8,073,644
|
|
|
7,998,203
|
|
|
8,080,690
|
|
|
8,023,549
|
|
||||
Effect of dilutive convertible preferred stock
|
|
—
|
|
|
—
|
|
|
489,625
|
|
|
—
|
|
||||
Effect of dilutive convertible subordinated debt
|
|
1,837,500
|
|
|
1,837,500
|
|
|
1,837,500
|
|
|
—
|
|
||||
Effect of dilutive stock options
|
|
24,065
|
|
|
125,530
|
|
|
26,529
|
|
|
152,755
|
|
||||
Total diluted average shares outstanding
|
|
9,935,209
|
|
|
9,961,233
|
|
|
10,434,344
|
|
|
8,176,304
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share from continuing operations - basic
|
|
$
|
0.73
|
|
|
$
|
0.61
|
|
|
$
|
0.25
|
|
|
$
|
0.17
|
|
Earnings per share from discontinued operations - basic
|
|
$
|
0.49
|
|
|
$
|
0.01
|
|
|
$
|
—
|
|
|
$
|
(0.01
|
)
|
Earnings per share common shareholder - basic
|
|
$
|
1.22
|
|
|
$
|
0.62
|
|
|
$
|
0.25
|
|
|
$
|
0.16
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share from continuing operations - diluted
|
|
$
|
0.68
|
|
|
$
|
0.60
|
|
|
$
|
0.24
|
|
|
$
|
0.17
|
|
Earnings per share from discontinued operations - diluted
|
|
$
|
0.40
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(0.01
|
)
|
Earnings per share per common shareholder - diluted
|
|
$
|
1.08
|
|
|
$
|
0.60
|
|
|
$
|
0.24
|
|
|
$
|
0.16
|
|
Three months ended September 30, 2016
(Dollars in thousands) |
|
Commercial &
Retail Banking |
|
Mortgage
Banking |
|
Financial
Holding Company |
|
Insurance
|
|
Intercompany
Eliminations |
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
|
$
|
12,528
|
|
|
$
|
1,183
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
(189
|
)
|
|
$
|
13,523
|
|
Mortgage fee income
|
|
(95
|
)
|
|
11,003
|
|
|
—
|
|
|
—
|
|
|
(240
|
)
|
|
10,668
|
|
||||||
Insurance and investment services income
|
|
128
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
128
|
|
||||||
Other income
|
|
1,687
|
|
|
(31
|
)
|
|
1,444
|
|
|
—
|
|
|
(1,370
|
)
|
|
1,730
|
|
||||||
Total operating income
|
|
14,248
|
|
|
12,155
|
|
|
1,445
|
|
|
—
|
|
|
(1,799
|
)
|
|
26,049
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense
|
|
2,113
|
|
|
552
|
|
|
560
|
|
|
—
|
|
|
(431
|
)
|
|
2,794
|
|
||||||
Provision for loan losses
|
|
1,075
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,075
|
|
||||||
Salaries and employee benefits
|
|
2,924
|
|
|
7,724
|
|
|
1,735
|
|
|
—
|
|
|
—
|
|
|
12,383
|
|
||||||
Other expense
|
|
4,782
|
|
|
2,054
|
|
|
888
|
|
|
—
|
|
|
(1,368
|
)
|
|
6,356
|
|
||||||
Total operating expenses
|
|
10,894
|
|
|
10,330
|
|
|
3,183
|
|
|
—
|
|
|
(1,799
|
)
|
|
22,608
|
|
||||||
Income (loss) from continuing operations, before income taxes
|
|
3,354
|
|
|
1,825
|
|
|
(1,738
|
)
|
|
—
|
|
|
—
|
|
|
3,441
|
|
||||||
Income tax expense (benefit) - continuing operations
|
|
1,027
|
|
|
704
|
|
|
(600
|
)
|
|
—
|
|
|
—
|
|
|
1,131
|
|
||||||
Net income (loss) from continuing operations
|
|
2,327
|
|
|
1,121
|
|
|
(1,138
|
)
|
|
—
|
|
|
—
|
|
|
2,310
|
|
||||||
Income (loss) from discontinued operations, before income taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Income tax expense (benefit) - discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net income (loss) from discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net income (loss)
|
|
2,327
|
|
|
1,121
|
|
|
(1,138
|
)
|
|
—
|
|
|
—
|
|
|
2,310
|
|
||||||
Preferred stock dividends
|
|
—
|
|
|
—
|
|
|
314
|
|
|
—
|
|
|
—
|
|
|
314
|
|
||||||
Net income (loss) available to common shareholders
|
|
$
|
2,327
|
|
|
$
|
1,121
|
|
|
$
|
(1,452
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures for the three-month period ended September 30, 2016
|
|
$
|
116
|
|
|
$
|
9
|
|
|
$
|
36
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
161
|
|
Total assets as of September 30, 2016
|
|
1,462,496
|
|
|
150,091
|
|
|
159,753
|
|
|
—
|
|
|
(303,745
|
)
|
|
1,468,595
|
|
||||||
Total assets as of December 31, 2015
|
|
1,378,988
|
|
|
125,227
|
|
|
151,441
|
|
|
5,017
|
|
|
(276,197
|
)
|
|
1,384,476
|
|
||||||
Goodwill as of September 30, 2016
|
|
1,598
|
|
|
16,882
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,480
|
|
||||||
Goodwill as of December 31, 2015
|
|
$
|
1,598
|
|
|
$
|
16,882
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18,480
|
|
Three months ended September 30, 2015
(Dollars in thousands) |
|
Commercial & Retail Banking
|
|
Mortgage Banking
|
|
Financial Holding Company
|
|
Insurance
|
|
Intercompany Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
|
$
|
10,426
|
|
|
$
|
1,029
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
(40
|
)
|
|
$
|
11,416
|
|
Mortgage fee income
|
|
(28
|
)
|
|
9,293
|
|
|
—
|
|
|
—
|
|
|
(310
|
)
|
|
8,955
|
|
||||||
Insurance and investment services income
|
|
98
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
98
|
|
||||||
Other income
|
|
846
|
|
|
(1,544
|
)
|
|
1,126
|
|
|
—
|
|
|
(1,028
|
)
|
|
(600
|
)
|
||||||
Total operating income
|
|
11,342
|
|
|
8,778
|
|
|
1,127
|
|
|
—
|
|
|
(1,378
|
)
|
|
19,869
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense
|
|
1,778
|
|
|
415
|
|
|
555
|
|
|
—
|
|
|
(350
|
)
|
|
2,398
|
|
||||||
Provision for loan losses
|
|
636
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
636
|
|
||||||
Salaries and employee benefits
|
|
2,895
|
|
|
5,302
|
|
|
1,087
|
|
|
—
|
|
|
—
|
|
|
9,284
|
|
||||||
Other expense
|
|
3,831
|
|
|
1,894
|
|
|
775
|
|
|
—
|
|
|
(1,028
|
)
|
|
5,472
|
|
||||||
Total operating expenses
|
|
9,140
|
|
|
7,611
|
|
|
2,417
|
|
|
—
|
|
|
(1,378
|
)
|
|
17,790
|
|
||||||
Income (loss) from continuing operations, before income taxes
|
|
2,202
|
|
|
1,167
|
|
|
(1,290
|
)
|
|
—
|
|
|
—
|
|
|
2,079
|
|
||||||
Income tax expense (benefit) - continuing operations
|
|
567
|
|
|
448
|
|
|
(446
|
)
|
|
—
|
|
|
—
|
|
|
569
|
|
||||||
Net income (loss) from continuing operations
|
|
1,635
|
|
|
719
|
|
|
(844
|
)
|
|
—
|
|
|
—
|
|
|
1,510
|
|
||||||
(Loss) from discontinued operations, before income taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(167
|
)
|
|
—
|
|
|
(167
|
)
|
||||||
Income tax (benefit) - discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(63
|
)
|
|
—
|
|
|
(63
|
)
|
||||||
Net (loss) from discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(104
|
)
|
|
—
|
|
|
(104
|
)
|
||||||
Net income (loss)
|
|
1,635
|
|
|
719
|
|
|
(844
|
)
|
|
(104
|
)
|
|
—
|
|
|
1,406
|
|
||||||
Preferred stock dividends
|
|
—
|
|
|
—
|
|
|
145
|
|
|
—
|
|
|
—
|
|
|
145
|
|
||||||
Net income (loss) available to common shareholders
|
|
$
|
1,635
|
|
|
$
|
719
|
|
|
$
|
(989
|
)
|
|
$
|
(104
|
)
|
|
$
|
—
|
|
|
$
|
1,261
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures for the three-month period ended September 30, 2015
|
|
$
|
266
|
|
|
$
|
53
|
|
|
$
|
224
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
543
|
|
Total assets as of September 30, 2015
|
|
1,317,447
|
|
|
110,120
|
|
|
142,673
|
|
|
2,944
|
|
|
(266,655
|
)
|
|
1,306,529
|
|
||||||
Total assets as of December 31, 2014
|
|
1,048,101
|
|
|
101,791
|
|
|
141,645
|
|
|
4,031
|
|
|
(185,109
|
)
|
|
1,110,459
|
|
||||||
Goodwill as of September 30, 2015
|
|
1,598
|
|
|
16,882
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,480
|
|
||||||
Goodwill as of December 31, 2014
|
|
$
|
897
|
|
|
$
|
16,882
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17,779
|
|
Nine months ended September 30, 2016
(Dollars in thousands) |
|
Commercial &
Retail Banking |
|
Mortgage
Banking |
|
Financial
Holding Company |
|
Insurance
|
|
Intercompany
Eliminations |
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
|
$
|
37,583
|
|
|
$
|
3,278
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
(378
|
)
|
|
$
|
40,485
|
|
Mortgage fee income
|
|
(190
|
)
|
|
27,862
|
|
|
|
|
|
—
|
|
|
(822
|
)
|
|
26,850
|
|
||||||
Insurance and investment services income
|
|
303
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
303
|
|
||||||
Other income
|
|
4,161
|
|
|
1,804
|
|
|
4,310
|
|
|
—
|
|
|
(4,289
|
)
|
|
5,986
|
|
||||||
Total operating income
|
|
41,857
|
|
|
32,944
|
|
|
4,312
|
|
|
—
|
|
|
(5,489
|
)
|
|
73,624
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense
|
|
6,312
|
|
|
1,543
|
|
|
1,665
|
|
|
—
|
|
|
(1,201
|
)
|
|
8,319
|
|
||||||
Provision for loan losses
|
|
2,975
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,975
|
|
||||||
Salaries and employee benefits
|
|
8,654
|
|
|
20,866
|
|
|
4,907
|
|
|
—
|
|
|
—
|
|
|
34,427
|
|
||||||
Other expense
|
|
13,686
|
|
|
5,979
|
|
|
2,591
|
|
|
—
|
|
|
(4,288
|
)
|
|
17,968
|
|
||||||
Total operating expenses
|
|
31,627
|
|
|
28,388
|
|
|
9,163
|
|
|
—
|
|
|
(5,489
|
)
|
|
63,689
|
|
||||||
Income (loss) from continuing operations, before income taxes
|
|
10,230
|
|
|
4,556
|
|
|
(4,851
|
)
|
|
—
|
|
|
—
|
|
|
9,935
|
|
||||||
Income tax expense (benefit) - continuing operations
|
|
3,177
|
|
|
1,762
|
|
|
(1,674
|
)
|
|
—
|
|
|
—
|
|
|
3,265
|
|
||||||
Net income (loss) from continuing operations
|
|
7,053
|
|
|
2,794
|
|
|
(3,177
|
)
|
|
—
|
|
|
—
|
|
|
6,670
|
|
||||||
Income (loss) from discontinued operations, before income taxes
|
|
—
|
|
|
—
|
|
|
6,926
|
|
|
(580
|
)
|
|
—
|
|
|
6,346
|
|
||||||
Income tax expense (benefit) - discontinued operations
|
|
—
|
|
|
—
|
|
|
2,629
|
|
|
(218
|
)
|
|
—
|
|
|
2,411
|
|
||||||
Net income (loss) from discontinued operations
|
|
—
|
|
|
—
|
|
|
4,297
|
|
|
(362
|
)
|
|
—
|
|
|
3,935
|
|
||||||
Net income (loss)
|
|
7,053
|
|
|
2,794
|
|
|
1,120
|
|
|
(362
|
)
|
|
—
|
|
|
10,605
|
|
||||||
Preferred stock dividends
|
|
|
|
—
|
|
|
814
|
|
|
—
|
|
|
—
|
|
|
814
|
|
|||||||
Net income (loss) available to common shareholders
|
|
$
|
7,053
|
|
|
$
|
2,794
|
|
|
$
|
306
|
|
|
$
|
(362
|
)
|
|
$
|
—
|
|
|
$
|
9,791
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures for the nine-month period ended September 30, 2016
|
|
$
|
1,068
|
|
|
$
|
164
|
|
|
$
|
203
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,435
|
|
Total assets as of September 30, 2016
|
|
1,462,496
|
|
|
150,091
|
|
|
159,753
|
|
|
—
|
|
|
(303,745
|
)
|
|
1,468,595
|
|
||||||
Total assets as of December 31, 2015
|
|
1,378,988
|
|
|
125,227
|
|
|
151,441
|
|
|
5,017
|
|
|
(276,197
|
)
|
|
1,384,476
|
|
||||||
Goodwill as of September 30, 2016
|
|
1,598
|
|
|
16,882
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,480
|
|
||||||
Goodwill as of December 31, 2015
|
|
$
|
1,598
|
|
|
$
|
16,882
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18,480
|
|
Nine months ended September 30, 2015
(Dollars in thousands) |
|
Commercial &
Retail Banking |
|
Mortgage
Banking |
|
Financial
Holding Company |
|
Insurance
|
|
Intercompany
Eliminations |
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
|
$
|
29,047
|
|
|
$
|
2,996
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
(297
|
)
|
|
$
|
31,748
|
|
Mortgage fee income
|
|
36
|
|
|
24,678
|
|
|
|
|
|
—
|
|
|
(833
|
)
|
|
23,881
|
|
||||||
Insurance and investment services income
|
|
276
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
276
|
|
||||||
Other income
|
|
2,685
|
|
|
1,056
|
|
|
3,319
|
|
|
—
|
|
|
(3,345
|
)
|
|
3,715
|
|
||||||
Total operating income
|
|
32,044
|
|
|
28,730
|
|
|
3,321
|
|
|
—
|
|
|
(4,475
|
)
|
|
59,620
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense
|
|
4,920
|
|
|
1,319
|
|
|
1,648
|
|
|
—
|
|
|
(1,130
|
)
|
|
6,757
|
|
||||||
Provision for loan losses
|
|
1,856
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,856
|
|
||||||
Salaries and employee benefits
|
|
8,336
|
|
|
15,967
|
|
|
3,121
|
|
|
—
|
|
|
—
|
|
|
27,424
|
|
||||||
Other expense
|
|
11,773
|
|
|
5,474
|
|
|
1,857
|
|
|
—
|
|
|
(3,345
|
)
|
|
15,759
|
|
||||||
Total operating expenses
|
|
26,885
|
|
|
22,760
|
|
|
6,626
|
|
|
—
|
|
|
(4,475
|
)
|
|
51,796
|
|
||||||
Income (loss) from continuing operations, before income taxes
|
|
5,159
|
|
|
5,970
|
|
|
(3,305
|
)
|
|
—
|
|
|
—
|
|
|
7,824
|
|
||||||
Income tax expense (benefit) - continuing operations
|
|
1,317
|
|
|
2,287
|
|
|
(1,129
|
)
|
|
—
|
|
|
—
|
|
|
2,475
|
|
||||||
Net income (loss) from continuing operations
|
|
3,842
|
|
|
3,683
|
|
|
(2,176
|
)
|
|
—
|
|
|
—
|
|
|
5,349
|
|
||||||
Income from discontinued operations, before income taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
108
|
|
|
—
|
|
|
108
|
|
||||||
Income tax expense - discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43
|
|
|
—
|
|
|
43
|
|
||||||
Net income from discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
65
|
|
|
—
|
|
|
65
|
|
||||||
Net income (loss)
|
|
3,842
|
|
|
3,683
|
|
|
(2,176
|
)
|
|
65
|
|
|
—
|
|
|
5,414
|
|
||||||
Preferred stock dividends
|
|
—
|
|
|
—
|
|
|
430
|
|
|
—
|
|
|
—
|
|
|
430
|
|
||||||
Net income (loss) available to common shareholders
|
|
$
|
3,842
|
|
|
$
|
3,683
|
|
|
$
|
(2,606
|
)
|
|
$
|
65
|
|
|
$
|
—
|
|
|
$
|
4,984
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures for the nine-month period ended September 30, 2015
|
|
$
|
997
|
|
|
$
|
152
|
|
|
$
|
490
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
1,648
|
|
Total assets as of September 30, 2015
|
|
1,317,447
|
|
|
110,120
|
|
|
142,673
|
|
|
2,944
|
|
|
(266,655
|
)
|
|
1,306,529
|
|
||||||
Total assets as of December 31, 2014
|
|
1,048,101
|
|
|
101,791
|
|
|
141,645
|
|
|
4,031
|
|
|
(185,109
|
)
|
|
1,110,459
|
|
||||||
Goodwill as of September 30, 2015
|
|
1,598
|
|
|
16,882
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,480
|
|
||||||
Goodwill as of December 31, 2014
|
|
$
|
897
|
|
|
$
|
16,882
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17,779
|
|
(Dollars in thousands)
|
|
For the
three months ended September 30, 2016 |
|
For the
three months ended September 30, 2015 |
||||
Service cost
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
|
92
|
|
|
78
|
|
||
Expected Return on Plan Assets
|
|
(83
|
)
|
|
(79
|
)
|
||
Amortization of Net Actuarial Loss
|
|
59
|
|
|
64
|
|
||
Amortization of Prior Service Cost
|
|
—
|
|
|
—
|
|
||
Net Periodic Benefit Cost
|
|
$
|
68
|
|
|
$
|
63
|
|
|
|
|
|
|
||||
Contributions Paid
|
|
$
|
62
|
|
|
$
|
230
|
|
(Dollars in thousands)
|
|
For the
nine months ended September 30, 2016 |
|
For the
nine months ended September 30, 2015 |
||||
Service cost
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
|
276
|
|
|
235
|
|
||
Expected Return on Plan Assets
|
|
(248
|
)
|
|
(237
|
)
|
||
Amortization of Net Actuarial Loss
|
|
177
|
|
|
192
|
|
||
Amortization of Prior Service Cost
|
|
—
|
|
|
—
|
|
||
Net Periodic Benefit Cost
|
|
$
|
205
|
|
|
$
|
190
|
|
|
|
|
|
|
||||
Contributions Paid
|
|
$
|
142
|
|
|
$
|
302
|
|
|
|
For the
three months ended September 30, 2016 |
|
For the
three months ended September 30, 2015 |
|
For the
nine months ended September 30, 2016 |
|
For the
nine months ended September 30, 2015 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Details about AOCI Components
|
|
Amount
Reclassified from AOCI |
|
Amount
Reclassified from AOCI |
|
Amount
Reclassified from AOCI |
|
Amount
Reclassified from AOCI |
|
Affected line item in the Statement
where net income is presented |
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
||||||||
Unrealized holding gains
|
|
$
|
479
|
|
|
$
|
4
|
|
|
$
|
1,082
|
|
|
$
|
130
|
|
|
Gain on sale of securities
|
|
|
479
|
|
|
4
|
|
|
1,082
|
|
|
130
|
|
|
Total before tax
|
||||
|
|
(192
|
)
|
|
(2
|
)
|
|
(433
|
)
|
|
(52
|
)
|
|
Income tax expense
|
||||
|
|
287
|
|
|
2
|
|
|
649
|
|
|
78
|
|
|
Net of tax
|
||||
Defined benefit pension plan items
|
|
|
|
|
|
|
|
|
|
|
||||||||
Amortization of net actuarial loss
|
|
(59
|
)
|
|
(64
|
)
|
|
(177
|
)
|
|
(192
|
)
|
|
Salaries and benefits
|
||||
|
|
(59
|
)
|
|
(64
|
)
|
|
(177
|
)
|
|
(192
|
)
|
|
Total before tax
|
||||
|
|
24
|
|
|
26
|
|
|
71
|
|
|
77
|
|
|
Income tax expense
|
||||
|
|
(35
|
)
|
|
(38
|
)
|
|
(106
|
)
|
|
(115
|
)
|
|
Net of tax
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total reclassifications
|
|
$
|
252
|
|
|
$
|
(36
|
)
|
|
$
|
543
|
|
|
$
|
(37
|
)
|
|
|
(Dollars in thousands)
|
|
Unrealized
gains (losses) on available for-sale securities |
|
Defined benefit
pension plan items |
|
Total
|
||||||
Balance at June 30, 2016
|
|
$
|
1,702
|
|
|
$
|
(3,060
|
)
|
|
$
|
(1,358
|
)
|
Other comprehensive income (loss) before reclassification, net of tax
|
|
(437
|
)
|
|
25
|
|
|
(412
|
)
|
|||
Amounts reclassified from AOCI, net of tax
|
|
(287
|
)
|
|
35
|
|
|
(252
|
)
|
|||
Net current period OCI
|
|
(724
|
)
|
|
60
|
|
|
(664
|
)
|
|||
Balance at September 30, 2016
|
|
$
|
978
|
|
|
$
|
(3,000
|
)
|
|
$
|
(2,022
|
)
|
|
|
|
|
|
|
|
||||||
Balance at June 30, 2015
|
|
$
|
(412
|
)
|
|
$
|
(1,920
|
)
|
|
$
|
(2,332
|
)
|
Other comprehensive income (loss) before reclassification, net of tax
|
|
259
|
|
|
(278
|
)
|
|
(19
|
)
|
|||
Amounts reclassified from AOCI, net of tax
|
|
(2
|
)
|
|
38
|
|
|
36
|
|
|||
Net current period OCI
|
|
257
|
|
|
(240
|
)
|
|
17
|
|
|||
Balance at September 30, 2015
|
|
$
|
(155
|
)
|
|
$
|
(2,160
|
)
|
|
$
|
(2,315
|
)
|
|
|
|
|
|
|
|
||||||
Balance at January 1, 2016
|
|
$
|
(363
|
)
|
|
$
|
(2,570
|
)
|
|
$
|
(2,933
|
)
|
Other comprehensive income (loss) before reclassification, net of tax
|
|
1,990
|
|
|
(536
|
)
|
|
1,454
|
|
|||
Amounts reclassified from AOCI, net of tax
|
|
(649
|
)
|
|
106
|
|
|
(543
|
)
|
|||
Net current period OCI
|
|
1,341
|
|
|
(430
|
)
|
|
911
|
|
|||
Balance at September 30, 2016
|
|
$
|
978
|
|
|
$
|
(3,000
|
)
|
|
$
|
(2,022
|
)
|
|
|
|
|
|
|
|
||||||
Balance at January 1, 2015
|
|
$
|
(406
|
)
|
|
$
|
(2,236
|
)
|
|
$
|
(2,642
|
)
|
Other comprehensive income (loss) before reclassification, net of tax
|
|
329
|
|
|
(39
|
)
|
|
290
|
|
|||
Amounts reclassified from AOCI, net of tax
|
|
(78
|
)
|
|
115
|
|
|
37
|
|
|||
Net current period OCI
|
|
251
|
|
|
76
|
|
|
327
|
|
|||
Balance at September 30, 2015
|
|
$
|
(155
|
)
|
|
$
|
(2,160
|
)
|
|
$
|
(2,315
|
)
|
(Dollars in thousands)
|
|
September 30,
2016 |
|
December 31,
2015 |
||||
ASSETS
|
|
|
|
|
||||
Cash and cash equivalents:
|
|
|
|
|
||||
Cash and due from banks
|
|
$
|
—
|
|
|
$
|
2,245
|
|
Total cash and cash equivalents
|
|
—
|
|
|
2,245
|
|
||
Premises and equipment
|
|
—
|
|
|
618
|
|
||
Accrued interest receivable and other assets
|
|
—
|
|
|
2,154
|
|
||
TOTAL ASSETS
|
|
$
|
—
|
|
|
$
|
5,017
|
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
Accrued interest payable and other liabilities
|
|
—
|
|
|
2,834
|
|
||
Total liabilities
|
|
—
|
|
|
2,834
|
|
||
|
|
|
|
|
||||
STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
Retained earnings
|
|
—
|
|
|
2,183
|
|
||
Total stockholders’ equity
|
|
—
|
|
|
2,183
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
$
|
—
|
|
|
$
|
5,017
|
|
(Dollars in thousands)
|
|
Nine Months Ended
September 30, |
|
Three Months Ended
September 30, |
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
NONINTEREST INCOME
|
|
|
|
|
|
|
|
|
||||||||
Insurance and investment services income
|
|
$
|
1,887
|
|
|
$
|
3,529
|
|
|
$
|
—
|
|
|
$
|
1,044
|
|
Gain on sale of subsidiary
|
|
6,926
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other operating income
|
|
2
|
|
|
6
|
|
|
—
|
|
|
1
|
|
||||
Total noninterest income
|
|
8,815
|
|
|
3,535
|
|
|
—
|
|
|
1,045
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
NONINTEREST EXPENSES
|
|
|
|
|
|
|
|
|
||||||||
Salary and employee benefits
|
|
1,937
|
|
|
2,707
|
|
|
—
|
|
|
919
|
|
||||
Occupancy expense
|
|
124
|
|
|
202
|
|
|
—
|
|
|
69
|
|
||||
Equipment depreciation and maintenance
|
|
29
|
|
|
42
|
|
|
—
|
|
|
14
|
|
||||
Data processing and communications
|
|
79
|
|
|
79
|
|
|
—
|
|
|
28
|
|
||||
Marketing, contributions and sponsorships
|
|
7
|
|
|
23
|
|
|
—
|
|
|
8
|
|
||||
Professional fees
|
|
2
|
|
|
20
|
|
|
—
|
|
|
17
|
|
||||
Printing, postage and supplies
|
|
12
|
|
|
14
|
|
|
—
|
|
|
5
|
|
||||
Insurance, tax and assessment expense
|
|
58
|
|
|
81
|
|
|
—
|
|
|
43
|
|
||||
Travel, entertainment, dues and subscriptions
|
|
67
|
|
|
91
|
|
|
—
|
|
|
35
|
|
||||
Other operating expenses
|
|
154
|
|
|
168
|
|
|
—
|
|
|
74
|
|
||||
Total noninterest expense
|
|
2,469
|
|
|
3,427
|
|
|
—
|
|
|
1,212
|
|
||||
Income from discontinued operations, before income taxes
|
|
6,346
|
|
|
108
|
|
|
—
|
|
|
(167
|
)
|
||||
Income tax expense - discontinued operations
|
|
2,411
|
|
|
43
|
|
|
—
|
|
|
(63
|
)
|
||||
Net Income (loss) from discontinued operations
|
|
$
|
3,935
|
|
|
$
|
65
|
|
|
$
|
—
|
|
|
$
|
(104
|
)
|
•
|
statements with respect to the beliefs, plans, objectives, goals, guidelines, expectations, anticipations, and future financial condition, results of operations and performance of MVB Financial Corp. (the “Company”) and its subsidiary (collectively “we,” “our,” or “us), including MVB Bank, Inc. (the “Bank”);
|
•
|
statements preceded by, followed by or that include the words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “projects,” or similar expressions.
|
•
|
the ability of the Company, the Bank, and MVB Mortgage to successfully execute business plans, manage risks, and achieve objectives;
|
•
|
changes in local, national and international political and economic conditions, including without limitation the political and economic effects of the recent economic crisis, delay of recovery from that crisis, economic conditions and fiscal imbalances in the United States and other countries, potential or actual downgrades in rating of sovereign debt issued by the United States and other countries, and other major developments, including wars, military actions, and terrorist attacks;
|
•
|
changes in financial market conditions, either internationally, nationally or locally in areas in which the Company, the Bank, and MVB Mortgage conduct operations, including without limitation, reduced rates of business formation and growth, commercial and residential real estate development and real estate prices;
|
•
|
fluctuations in markets for equity, fixed-income, commercial paper and other securities, including availability, market liquidity levels, and pricing; changes in interest rates, the quality and composition of the loan and securities portfolios, demand for loan products, deposit flows and competition;
|
•
|
the ability of the Company, the Bank, and MVB Mortgage to successfully conduct acquisitions and integrate acquired businesses;
|
•
|
potential difficulties in expanding the businesses of the Company, the Bank, and MVB Mortgage in existing and new markets;
|
•
|
increases in the levels of losses, customer bankruptcies, bank failures, claims, and assessments;
|
•
|
changes in fiscal, monetary, regulatory, trade and tax policies and laws, and regulatory assessments and fees, including policies of the U.S. Department of Treasury, the Board of Governors of the Federal Reserve Board System, and the Federal Deposit Insurance Corporation ("FDIC");
|
•
|
the impact of executive compensation rules under the Dodd-Frank Act and banking regulations which may impact the ability of the Company, the Bank, MVB Mortgage, and other American financial institutions to retain and recruit executives and other personnel necessary for their businesses and competitiveness;
|
•
|
the impact of the Dodd-Frank Act and of new international standards known as Basel III, and rules and regulations thereunder, many of which have not yet been promulgated, on our required regulatory capital and liquidity levels, governmental assessments on us, the scope of business activities in which we may engage, the manner in which the Company, the Bank, and MVB Mortgage engage in such activities, the fees that the Bank and MVB Mortgage may charge for certain products and services, and other matters affected by the Dodd-Frank Act and these international standards;
|
•
|
continuing consolidation in the financial services industry; new legal claims against the Company, the Bank, and MVB Mortgage, including litigation, arbitration and proceedings brought by governmental or self-regulatory agencies, or changes in existing legal matters;
|
•
|
success in gaining regulatory approvals, when required, including for proposed mergers or acquisitions;
|
•
|
changes in consumer spending and savings habits;
|
•
|
increased competitive challenges and expanding product and pricing pressures among financial institutions;
|
•
|
inflation and deflation;
|
•
|
technological changes and the implementation of new technologies by the Company, the Bank, and MVB Mortgage;
|
•
|
the ability of the Company, the Bank, and MVB Mortgage to develop and maintain secure and reliable information technology systems;
|
•
|
legislation or regulatory changes which adversely affect the operations or business of the Company, the Bank, or MVB Mortgage;
|
•
|
the ability of the Company, the Bank, and MVB Mortgage to comply with applicable laws and regulations; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies; and,
|
•
|
costs of deposit insurance and changes with respect to FDIC insurance coverage levels.
|
|
|
Nine Months Ended
September 30, |
|
Three Months Ended September 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net income to:
|
|
|
|
|
|
|
|
|
||||||||
Average assets (annualized) - continuing operations
|
|
0.62
|
%
|
|
0.60
|
%
|
|
0.64
|
%
|
|
0.48
|
%
|
||||
Average assets (annualized) - discontinued operations
|
|
0.37
|
%
|
|
0.01
|
%
|
|
—
|
%
|
|
(0.03
|
)%
|
||||
Average stockholders’ equity (annualized) - continuing operations
|
|
7.41
|
%
|
|
6.41
|
%
|
|
7.32
|
%
|
|
5.35
|
%
|
||||
Average stockholders’ equity (annualized) - discontinued operations
|
|
4.37
|
%
|
|
0.08
|
%
|
|
—
|
%
|
|
(0.37
|
)%
|
||||
Net interest margin
|
|
3.22
|
%
|
|
3.02
|
%
|
|
3.17
|
%
|
|
3.11
|
%
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Average stockholders’ equity to average assets
|
|
8.42
|
%
|
|
9.33
|
%
|
|
8.73
|
%
|
|
9.01
|
%
|
||||
Total loans to total deposits (end of period)
|
|
95.50
|
%
|
|
97.70
|
%
|
|
95.50
|
%
|
|
97.70
|
%
|
||||
Allowance for loan losses to total loans (end of period)
|
|
0.85
|
%
|
|
0.74
|
%
|
|
0.85
|
%
|
|
0.74
|
%
|
||||
Efficiency ratio
|
|
80.23
|
%
|
|
81.69
|
%
|
|
80.58
|
%
|
|
84.46
|
%
|
||||
Bank Capital ratios:
|
|
|
|
|
|
|
|
|
||||||||
Tier 1 capital ratio
|
|
11.53
|
%
|
|
11.88
|
%
|
|
11.53
|
%
|
|
11.88
|
%
|
||||
Risk-based capital ratio
|
|
12.30
|
%
|
|
12.60
|
%
|
|
12.30
|
%
|
|
12.60
|
%
|
||||
Leverage ratio
|
|
9.60
|
%
|
|
9.96
|
%
|
|
9.60
|
%
|
|
9.96
|
%
|
||||
Common Equity Tier 1 capital ratio
|
|
11.53
|
%
|
|
11.88
|
%
|
|
11.53
|
%
|
|
11.88
|
%
|
||||
Cash dividends on common stock as a percentage of net income
|
|
4.56
|
%
|
|
8.87
|
%
|
|
7.01
|
%
|
|
11.45
|
%
|
||||
Per share data:
|
|
|
|
|
|
|
|
|
||||||||
Book value per share (end of period)
|
|
$
|
13.49
|
|
|
$
|
12.13
|
|
|
$
|
13.49
|
|
|
$
|
12.13
|
|
Earnings per share from continuing operations - basic
|
|
$
|
0.73
|
|
|
$
|
0.61
|
|
|
$
|
0.25
|
|
|
$
|
0.17
|
|
Earnings per share from discontinued operations - basic
|
|
$
|
0.49
|
|
|
$
|
0.01
|
|
|
$
|
—
|
|
|
$
|
(0.01
|
)
|
Earnings per common shareholder - basic
|
|
$
|
1.22
|
|
|
$
|
0.62
|
|
|
$
|
0.25
|
|
|
$
|
0.16
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share from continuing operations - diluted
|
|
$
|
0.68
|
|
|
$
|
0.60
|
|
|
$
|
0.24
|
|
|
$
|
0.17
|
|
Earnings per share from discontinued operations - diluted
|
|
$
|
0.40
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(0.01
|
)
|
Earnings per common shareholder - diluted
|
|
$
|
1.08
|
|
|
$
|
0.60
|
|
|
$
|
0.24
|
|
|
$
|
0.16
|
|
|
Three Months Ended September 30, 2016
|
|
Three Months Ended September 30, 2015
|
||||||||||||||||||
|
Average
Balance |
|
Interest
Income/ Expense |
|
Yield/
Cost |
|
Average
Balance |
|
Interest
Income/ Expense |
|
Yield/
Cost |
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits in banks
|
$
|
18,567
|
|
|
$
|
28
|
|
|
0.60
|
%
|
|
$
|
18,492
|
|
|
$
|
11
|
|
|
0.24
|
%
|
CDs with other banks
|
10,893
|
|
|
53
|
|
|
1.95
|
%
|
|
12,455
|
|
|
60
|
|
|
1.93
|
%
|
||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
78,943
|
|
|
342
|
|
|
1.73
|
%
|
|
53,018
|
|
|
213
|
|
|
1.61
|
%
|
||||
Tax-exempt
|
67,033
|
|
|
476
|
|
|
2.84
|
%
|
|
65,306
|
|
|
380
|
|
|
2.33
|
%
|
||||
Loans and loans held for sale: (1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
737,134
|
|
|
7,916
|
|
|
4.30
|
%
|
|
633,312
|
|
|
6,880
|
|
|
4.35
|
%
|
||||
Tax exempt
|
16,170
|
|
|
140
|
|
|
3.46
|
%
|
|
19,214
|
|
|
168
|
|
|
3.50
|
%
|
||||
Real estate
|
409,074
|
|
|
4,370
|
|
|
4.27
|
%
|
|
342,048
|
|
|
3,506
|
|
|
4.10
|
%
|
||||
Consumer
|
16,003
|
|
|
198
|
|
|
4.95
|
%
|
|
17,039
|
|
|
198
|
|
|
4.65
|
%
|
||||
Total loans
|
1,178,381
|
|
|
12,624
|
|
|
4.29
|
%
|
|
1,011,613
|
|
|
10,752
|
|
|
4.25
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total earning assets
|
1,353,817
|
|
|
13,523
|
|
|
4.00
|
%
|
|
1,160,884
|
|
|
11,416
|
|
|
3.93
|
%
|
||||
Less: Allowance for loan losses
|
(9,337
|
)
|
|
|
|
|
|
(7,043
|
)
|
|
|
|
|
||||||||
Cash and due from banks
|
12,995
|
|
|
|
|
|
|
13,939
|
|
|
|
|
|
||||||||
Other assets
|
89,586
|
|
|
|
|
|
|
83,438
|
|
|
|
|
|
||||||||
Total assets
|
$
|
1,447,061
|
|
|
|
|
|
|
$
|
1,251,218
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NOW
|
$
|
426,096
|
|
|
$
|
530
|
|
|
0.50
|
%
|
|
$
|
451,658
|
|
|
$
|
699
|
|
|
0.62
|
%
|
Money market checking
|
178,579
|
|
|
359
|
|
|
0.80
|
%
|
|
68,070
|
|
|
102
|
|
|
0.60
|
%
|
||||
Savings
|
42,811
|
|
|
19
|
|
|
0.18
|
%
|
|
39,664
|
|
|
28
|
|
|
0.28
|
%
|
||||
IRAs
|
16,701
|
|
|
53
|
|
|
1.27
|
%
|
|
12,323
|
|
|
40
|
|
|
1.30
|
%
|
||||
CDs
|
305,259
|
|
|
941
|
|
|
1.23
|
%
|
|
300,686
|
|
|
796
|
|
|
1.06
|
%
|
||||
Repurchase agreements and federal funds sold
|
26,238
|
|
|
17
|
|
|
0.26
|
%
|
|
24,898
|
|
|
18
|
|
|
0.29
|
%
|
||||
FHLB and other borrowings
|
170,946
|
|
|
316
|
|
|
0.74
|
%
|
|
115,103
|
|
|
159
|
|
|
0.55
|
%
|
||||
Subordinated debt
|
33,524
|
|
|
559
|
|
|
6.67
|
%
|
|
33,524
|
|
|
556
|
|
|
6.63
|
%
|
||||
Total interest-bearing liabilities
|
1,200,154
|
|
|
2,794
|
|
|
0.93
|
%
|
|
1,045,926
|
|
|
2,398
|
|
|
0.92
|
%
|
||||
Noninterest bearing demand deposits
|
106,097
|
|
|
|
|
|
|
84,262
|
|
|
|
|
|
||||||||
Other liabilities
|
14,530
|
|
|
|
|
|
|
8,236
|
|
|
|
|
|
||||||||
Total liabilities
|
1,320,781
|
|
|
|
|
|
|
1,138,424
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred stock
|
16,334
|
|
|
|
|
|
|
16,334
|
|
|
|
|
|
||||||||
Common stock
|
8,132
|
|
|
|
|
|
|
8,075
|
|
|
|
|
|
||||||||
Paid-in capital
|
74,439
|
|
|
|
|
|
|
74,320
|
|
|
|
|
|
||||||||
Treasury stock
|
(1,084
|
)
|
|
|
|
|
|
(1,084
|
)
|
|
|
|
|
||||||||
Retained earnings
|
30,070
|
|
|
|
|
|
|
17,481
|
|
|
|
|
|
||||||||
Accumulated other comprehensive income
|
(1,611
|
)
|
|
|
|
|
|
(2,332
|
)
|
|
|
|
|
||||||||
Total stockholders’ equity
|
126,280
|
|
|
|
|
|
|
112,794
|
|
|
|
|
|
||||||||
Total liabilities and stockholders’ equity
|
$
|
1,447,061
|
|
|
|
|
|
|
$
|
1,251,218
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest spread
|
|
|
|
|
3.07
|
|
|
|
|
|
|
3.01
|
|
||||||||
Net interest income-margin
|
|
|
$
|
10,729
|
|
|
3.17
|
%
|
|
|
|
$
|
9,018
|
|
|
3.11
|
%
|
|
Nine Months Ended September 30, 2016
|
|
Nine Months Ended September 30, 2015
|
||||||||||||||||||
|
Average
Balance |
|
Interest
Income/ Expense |
|
Yield/
Cost |
|
Average
Balance |
|
Interest
Income/ Expense |
|
Yield/
Cost |
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits in banks
|
$
|
17,859
|
|
|
$
|
73
|
|
|
0.55
|
%
|
|
$
|
15,782
|
|
|
$
|
30
|
|
|
0.25
|
%
|
CDs with other banks
|
12,392
|
|
|
178
|
|
|
1.92
|
%
|
|
11,970
|
|
|
168
|
|
|
1.87
|
%
|
||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
73,987
|
|
|
984
|
|
|
1.77
|
%
|
|
53,659
|
|
|
674
|
|
|
1.67
|
%
|
||||
Tax-exempt
|
61,682
|
|
|
1,320
|
|
|
2.85
|
%
|
|
64,943
|
|
|
1,150
|
|
|
2.36
|
%
|
||||
Loans and loans held for sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
734,924
|
|
|
24,394
|
|
|
4.43
|
%
|
|
593,077
|
|
|
18,894
|
|
|
4.25
|
%
|
||||
Tax exempt
|
16,491
|
|
|
428
|
|
|
3.46
|
%
|
|
20,409
|
|
|
539
|
|
|
3.52
|
%
|
||||
Real estate
|
398,213
|
|
|
12,489
|
|
|
4.18
|
%
|
|
325,775
|
|
|
9,723
|
|
|
3.98
|
%
|
||||
Consumer
|
17,441
|
|
|
619
|
|
|
4.73
|
%
|
|
17,031
|
|
|
570
|
|
|
4.46
|
%
|
||||
Total loans
|
1,167,069
|
|
|
37,930
|
|
|
4.33
|
%
|
|
956,292
|
|
|
29,726
|
|
|
4.14
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total earning assets
|
1,332,989
|
|
|
40,485
|
|
|
4.05
|
%
|
|
1,102,646
|
|
|
31,748
|
|
|
3.84
|
%
|
||||
Less: Allowance for loan losses
|
(8,758
|
)
|
|
|
|
|
|
(6,801
|
)
|
|
|
|
|
||||||||
Cash and due from banks
|
13,206
|
|
|
|
|
|
|
14,031
|
|
|
|
|
|
||||||||
Other assets
|
88,061
|
|
|
|
|
|
|
83,123
|
|
|
|
|
|
||||||||
Total assets
|
$
|
1,425,498
|
|
|
|
|
|
|
$
|
1,192,999
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NOW
|
$
|
457,945
|
|
|
$
|
1,865
|
|
|
0.54
|
%
|
|
$
|
431,053
|
|
|
$
|
1,989
|
|
|
0.62
|
%
|
Money market checking
|
146,467
|
|
|
833
|
|
|
0.76
|
%
|
|
60,940
|
|
|
274
|
|
|
0.60
|
%
|
||||
Savings
|
43,870
|
|
|
70
|
|
|
0.21
|
%
|
|
37,933
|
|
|
83
|
|
|
0.29
|
%
|
||||
IRAs
|
16,252
|
|
|
155
|
|
|
1.27
|
%
|
|
10,985
|
|
|
102
|
|
|
1.24
|
%
|
||||
CDs
|
318,740
|
|
|
2,816
|
|
|
1.18
|
%
|
|
273,818
|
|
|
2,106
|
|
|
1.03
|
%
|
||||
Repurchase agreements & federal funds sold
|
27,169
|
|
|
55
|
|
|
0.27
|
%
|
|
26,987
|
|
|
62
|
|
|
0.31
|
%
|
||||
FHLB and other borrowings
|
153,687
|
|
|
861
|
|
|
0.75
|
%
|
|
121,724
|
|
|
493
|
|
|
0.54
|
%
|
||||
Subordinated debt
|
33,524
|
|
|
1,664
|
|
|
6.62
|
%
|
|
33,524
|
|
|
1,648
|
|
|
6.55
|
%
|
||||
Total interest-bearing liabilities
|
1,197,654
|
|
|
8,319
|
|
|
0.93
|
%
|
|
996,964
|
|
|
6,757
|
|
|
0.90
|
%
|
||||
Non-interest bearing demand deposits
|
96,615
|
|
|
|
|
|
|
77,330
|
|
|
|
|
|
||||||||
Other liabilities
|
11,271
|
|
|
|
|
|
|
7,408
|
|
|
|
|
|
||||||||
Total liabilities
|
1,305,540
|
|
|
|
|
|
|
1,081,702
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred stock
|
16,334
|
|
|
|
|
|
|
16,334
|
|
|
|
|
|
||||||||
Common stock
|
8,124
|
|
|
|
|
|
|
8,049
|
|
|
|
|
|
||||||||
Paid-in capital
|
74,355
|
|
|
|
|
|
|
74,383
|
|
|
|
|
|
||||||||
Treasury stock
|
(1,084
|
)
|
|
|
|
|
|
(1,084
|
)
|
|
|
|
|
||||||||
Retained earnings
|
24,294
|
|
|
|
|
|
|
16,122
|
|
|
|
|
|
||||||||
Accumulated other comprehensive income
|
(2,065
|
)
|
|
|
|
|
|
(2,507
|
)
|
|
|
|
|
||||||||
Total stockholders’ equity
|
119,958
|
|
|
|
|
|
|
111,297
|
|
|
|
|
|
||||||||
Total liabilities and stockholders’ equity
|
$
|
1,425,498
|
|
|
|
|
|
|
$
|
1,192,999
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest spread
|
|
|
|
|
3.12
|
|
|
|
|
|
|
2.94
|
|
||||||||
Net interest income-margin
|
|
|
$
|
32,166
|
|
|
3.22
|
%
|
|
|
|
$
|
24,991
|
|
|
3.02
|
%
|
•
|
45.7%
of municipal securities
|
•
|
13.0%
- U.S. Agency securities
|
•
|
36.6%
- U.S. Sponsored Mortgage-backed securities
|
•
|
4.7%
- Equity and other securities
|
|
|
August 2016
|
|
August 2015
|
||
Berkeley County, WV
|
|
4.00
|
%
|
|
5.10
|
%
|
Harrison County, WV
|
|
5.50
|
%
|
|
6.60
|
%
|
Jefferson County, WV
|
|
3.40
|
%
|
|
4.20
|
%
|
Marion County, WV
|
|
6.00
|
%
|
|
7.50
|
%
|
Monongalia County, WV
|
|
4.50
|
%
|
|
5.30
|
%
|
Kanawha County, WV
|
|
5.20
|
%
|
|
6.00
|
%
|
Fairfax County, VA
|
|
3.20
|
%
|
|
3.50
|
%
|
•
|
4.5% CET1 to risk-weighted assets;
|
•
|
6.0% Tier 1 capital (that is, CET1 plus Additional Tier 1 capital) to risk-weighted assets;
|
•
|
8.0% Total capital (that is, Tier 1 capital plus Tier 2 capital) to risk-weighted assets; and
|
•
|
4.0% Tier 1 capital to average consolidated assets as reported on consolidated financial statements (known as the “leverage ratio”).
|
MVB Financial Corp.
|
|
|
|
By:
|
/s/ Larry F. Mazza
Larry F. Mazza
President, CEO and Director
(Principal Executive Officer)
|
|
|
By:
|
/s/ Donald T. Robinson
Donald T. Robinson
Executive Vice President & CFO
(Principal Financial and Accounting Officer)
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted account principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Larry F. Mazza
|
Larry F. Mazza
|
President, CEO and Director
(Principal Executive Officer)
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted account principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Donald T. Robinson
|
Donald T. Robinson
|
Executive Vice President & CFO
(Principal Financial and Accounting Officer)
|
/s/ Larry F. Mazza
|
Larry F. Mazza
President, CEO and Director
|
(Principal Executive Officer)
|
/s/ Donald T. Robinson
|
Donald T. Robinson
Executive Vice President and CFO
|
(Principal Financial and Accounting Officer)
|