(Mark One)
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☒
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ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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New Jersey
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20-3700861
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(State or Other Jurisdiction of
Incorporation or Organization)
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(I.R.S. Employer Identification Number)
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766 Shrewsbury Avenue, Tinton Falls, New Jersey 07724
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(Address of Principal Executive Offices, including Zip Code)
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(732) 389-8722
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(Registrant’s telephone number, including area code)
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Securities registered pursuant to Section 12(b) of the Act:
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Common Stock, no par value
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The NASDAQ Stock Market LLC
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Title of each class
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Name of each exchange on which registered
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Preferred Stock Purchase Rights
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(Title of Class)
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Large accelerated filer
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☐
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Accelerated filer
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x
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Non-accelerated filer (Do not check if a smaller reporting company)
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☐
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Smaller reporting company
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x
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Emerging growth company
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☐
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Item 1B
.
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•
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Aligning resources to support strategy and productivity;
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•
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Increase fee and other non-interest income, primarily through mortgage banking and SBA lending;
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•
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Continued improvement in net interest income through controlled balance sheet growth; and
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•
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Growth in earnings per share.
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•
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Organically growing the size of the loan portfolio and deposit base;
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•
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Utilizing our new technology to attract new customers and lower costs; and
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•
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Enhancing our electronic delivery channels to better serve our commercial customer base.
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(i)
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commercial;
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(iii)
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SBA lending; and
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(iv)
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residential or consumer lending.
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(i)
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the application of prudent underwriting criteria;
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(ii)
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the active involvement by senior management and the Bank’s Board of Directors in the loan approval process;
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(iii)
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the active monitoring of loans to ensure timely repayment and early detection of potential problems; and
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(iv)
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a loan review process by an independent loan review firm, which conducts in-depth reviews of portions of the loan portfolio on a quarterly basis and an annual stress test of the commercial real estate and construction portfolios.
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•
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the viability of the contractor;
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•
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the value of the project being subject to successful completion;
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•
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the contractor’s ability to complete the project, to meet deadlines and time schedules and to stay within cost estimates; and
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•
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concentrations of such loans with a single contractor and its affiliates.
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Office Location
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Address
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Description
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Opened
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Corporate Headquarters:
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766 Shrewsbury Avenue
Tinton Falls, NJ (Monmouth County)
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17,626 sq. ft. building (leased)
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10/12
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The Bank’s Main Office
:
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1250 Highway 35 South
Middletown, NJ (Monmouth County)
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5,300 sq. ft. first-floor stand-alone building (leased)
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02/00
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Atlantic Highlands
:
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84 First Avenue
Atlantic Highlands, NJ (Monmouth County)
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817 sq. ft. store front (leased)
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03/02
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Cranford Office:
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245-249 North Avenue
Cranford, NJ (Union County)
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2,438 sq. ft. stand-alone building (owned)
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01/15
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Fanwood:
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328 South Avenue
Fanwood, NJ (Union County)
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2,966 sq. ft. stand-alone building (leased)
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03/08
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Freehold:
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31 East Main Street
Freehold, NJ (Monmouth County)
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2,060 sq. ft. in strip shopping center (leased)
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05/15
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Navesink:
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Eastpointe Shopping Center
2345 Route 36
Atlantic Highlands, NJ (Monmouth County)
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2,080 sq. ft. in strip shopping center (leased)
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09/05
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Port Monmouth
:
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357 Highway 36
Port Monmouth, NJ (Monmouth County)
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2,180 sq. ft. stand-alone building (leased)
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06/01
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Red Bank
:
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140 Broad Street
Red Bank, NJ (Monmouth County)
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2,459 sq. ft. store front (leased)
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11/12
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Sea Girt:
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1314 Sea Girt Avenue
Sea Girt, NJ (Monmouth County)
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1,537 sq. ft. stand-alone building (owned)
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09/17
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Tinton Falls:
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4050 Asbury Avenue
Tinton Falls, NJ (Monmouth County)
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2,500 sq. ft. stand-alone building (leased)
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10/06
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Tinton Falls
:
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656 Shrewsbury Avenue
Tinton Falls, NJ (Monmouth County)
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3,650 sq. ft. stand-alone building (leased)
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08/00
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West Long Branch
:
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359 Monmouth Road
West Long Branch, NJ (Monmouth County)
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3,100 sq. ft. in strip shopping center (leased)
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01/04
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Westfield:
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520 South Avenue
Westfield, NJ (Union County)
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3,630 sq. ft. stand-alone building (leased)
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10/98
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2018
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2017
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||||||||||||
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High
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Low
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High
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Low
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||||
First Quarter
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$
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18.41
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$
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16.63
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$
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18.13
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$
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13.70
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Second Quarter
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19.80
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16.98
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18.70
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15.90
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||||
Third Quarter
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19.16
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17.03
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19.85
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17.33
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||||
Fourth Quarter
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17.26
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12.19
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20.58
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17.81
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Period
|
Total
Number of Shares Purchased (1) |
Average Price
Paid Per Share ($) |
Total Number of
Shares Purchased as Part of Publicly Announced Plans or Programs |
Maximum
Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs ($) |
||||
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||||
October 1, 2018 through October 31, 2018
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—
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—
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—
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1,977,105
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November 1, 2018 through November 30, 2018
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1,506
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15.15
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1,506
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1,962,352
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December 1, 2018 through December 31, 2018
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14,845
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15.30
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14,845
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1,749,271
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Total
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16,351
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15.28
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16,351
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Period Ending
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|||||||||
Index
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12/31/2013
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12/31/2014
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12/31/2015
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12/31/2016
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12/31/2017
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12/31/2018
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Two River Bancorp
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100.00
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118.53
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141.92
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215.83
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278.06
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236.84
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NASDAQ Composite Index
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100.00
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114.75
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122.74
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133.62
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173.22
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168.30
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SNL U.S. Bank Index
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100.00
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111.79
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113.69
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143.65
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169.64
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140.98
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||||||||||||||||||
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As of and for the Years Ended December 31,
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||||||||||||||||||
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2018
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2017
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2016
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2015
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2014
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||||||||||
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(in thousands, except per share data)
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||||||||||||||||||
Income Statement
|
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Interest income
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$
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44,492
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$
|
38,240
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$
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34,624
|
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$
|
32,103
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$
|
30,386
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Interest expense
|
|
8,366
|
|
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5,707
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5,164
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3,863
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|
|
3,452
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|||||
Net interest income
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36,126
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32,533
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29,460
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28,240
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26,934
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|||||
Provision for loan losses
|
|
775
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|
1,530
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|
515
|
|
|
490
|
|
|
621
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|
|||||
Net interest income after provision for loan losses
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35,351
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31,003
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28,945
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|
27,750
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|
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26,313
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|
|||||
Non-interest income
|
|
5,531
|
|
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5,459
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|
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5,489
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|
|
3,537
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2,932
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|
|||||
Non-interest expenses
|
|
25,686
|
|
|
23,942
|
|
|
21,475
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|
|
21,355
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|
|
19,667
|
|
|||||
Income before income taxes
|
|
15,196
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|
|
12,520
|
|
|
12,959
|
|
|
9,932
|
|
|
9,578
|
|
|||||
Income tax expense
|
|
3,990
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|
|
6,018
|
|
|
4,328
|
|
|
3,585
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|
|
3,561
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|
|||||
Net income
|
|
11,206
|
|
|
6,502
|
|
|
8,631
|
|
|
6,347
|
|
|
6,017
|
|
|||||
Preferred stock dividend
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(57
|
)
|
|
(117
|
)
|
|||||
Net income available to common shareholders
|
|
$
|
11,206
|
|
|
$
|
6,502
|
|
|
$
|
8,631
|
|
|
$
|
6,290
|
|
|
$
|
5,900
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Per Share Data (1)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
8,508
|
|
|
8,388
|
|
|
8,321
|
|
|
8,304
|
|
|
8,329
|
|
|||||
Diluted
|
|
8,702
|
|
|
8,658
|
|
|
8,530
|
|
|
8,507
|
|
|
8,519
|
|
|||||
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
$
|
1.32
|
|
|
$
|
0.78
|
|
|
$
|
1.04
|
|
|
$
|
0.76
|
|
|
$
|
0.71
|
|
Diluted
|
|
1.29
|
|
|
0.75
|
|
|
1.01
|
|
|
0.74
|
|
|
0.69
|
|
|||||
Cash dividends per common share
|
|
0.20
|
|
|
0.17
|
|
|
0.14
|
|
|
0.12
|
|
|
0.10
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans, net of unearned discounts and fees
|
|
$
|
921,301
|
|
|
$
|
850,874
|
|
|
$
|
753,092
|
|
|
$
|
693,150
|
|
|
$
|
627,614
|
|
Goodwill and other intangibles
|
|
18,109
|
|
|
18,109
|
|
|
18,109
|
|
|
18,118
|
|
|
18,166
|
|
|||||
Total assets
|
|
1,096,419
|
|
|
1,039,798
|
|
|
940,211
|
|
|
863,696
|
|
|
781,196
|
|
|||||
Total deposits
|
|
917,354
|
|
|
861,557
|
|
|
776,567
|
|
|
708,436
|
|
|
642,390
|
|
|||||
Total shareholders' equity
|
|
116,498
|
|
|
106,571
|
|
|
100,716
|
|
|
93,002
|
|
|
93,932
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Performance Ratios
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets
|
|
1.04
|
%
|
|
0.66
|
%
|
|
0.96
|
%
|
|
0.76
|
%
|
|
0.78
|
%
|
|||||
Return on average equity
|
|
10.07
|
%
|
|
6.22
|
%
|
|
8.94
|
%
|
|
6.59
|
%
|
|
6.21
|
%
|
|||||
Net interest margin
|
|
3.58
|
%
|
|
3.53
|
%
|
|
3.53
|
%
|
|
3.68
|
%
|
|
3.79
|
%
|
|||||
Efficiency ratio (2)
|
|
61.66
|
%
|
|
63.02
|
%
|
|
61.45
|
%
|
|
67.20
|
%
|
|
65.85
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
2017
|
|
2016
|
|||
|
|
|
|
|
|
|||
Return on average assets
|
1.04
|
%
|
|
0.66
|
%
|
|
0.96
|
%
|
Return on average tangible assets (1)
|
1.06
|
%
|
|
0.67
|
%
|
|
0.98
|
%
|
Return on average shareholders’ equity
|
10.07
|
%
|
|
6.22
|
%
|
|
8.94
|
%
|
Return on average tangible shareholders’ equity (1)
|
12.03
|
%
|
|
7.52
|
%
|
|
11.00
|
%
|
Net interest margin
|
3.58
|
%
|
|
3.53
|
%
|
|
3.53
|
%
|
Average equity to average assets
|
10.36
|
%
|
|
10.55
|
%
|
|
10.70
|
%
|
Average tangible equity to average tangible assets (1)
|
8.83
|
%
|
|
8.89
|
%
|
|
8.87
|
%
|
(in thousands except per share data and percentages)
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
|
|
|
||||||
Total shareholders’ equity
|
$
|
116,498
|
|
|
$
|
106,571
|
|
|
$
|
100,667
|
|
Less: goodwill and other intangible assets
|
(18,109
|
)
|
|
(18,109
|
)
|
|
(18,109
|
)
|
|||
Tangible common shareholders’ equity
|
$
|
98,389
|
|
|
$
|
88,462
|
|
|
$
|
82,558
|
|
|
|
|
|
|
|
||||||
Common shares outstanding
|
8,607
|
|
|
8,470
|
|
|
8,365
|
|
|||
Book value per common share
|
$
|
13.54
|
|
|
$
|
12.58
|
|
|
$
|
12.04
|
|
|
|
|
|
|
|
||||||
Book value per common share
|
$
|
13.54
|
|
|
$
|
12.58
|
|
|
$
|
12.04
|
|
Effect of intangible assets
|
(2.11
|
)
|
|
(2.14
|
)
|
|
(2.16
|
)
|
|||
Tangible book value per common share
|
$
|
11.43
|
|
|
$
|
10.44
|
|
|
$
|
9.88
|
|
|
|
|
|
|
|
||||||
Return on average assets
|
1.04
|
%
|
|
0.66
|
%
|
|
0.96
|
%
|
|||
Effect of intangible assets
|
0.02
|
%
|
|
0.01
|
%
|
|
0.02
|
%
|
|||
Return on average tangible assets
|
1.06
|
%
|
|
0.67
|
%
|
|
0.98
|
%
|
|||
|
|
|
|
|
|
||||||
Return on average equity
|
10.07
|
%
|
|
6.22
|
%
|
|
8.94
|
%
|
|||
Effect of average intangible assets
|
1.96
|
%
|
|
1.30
|
%
|
|
2.06
|
%
|
|||
Return on average tangible equity
|
12.03
|
%
|
|
7.52
|
%
|
|
11.00
|
%
|
|||
|
|
|
|
|
|
||||||
Average equity to average assets
|
10.36
|
%
|
|
10.55
|
%
|
|
10.70
|
%
|
|||
Effect of average intangible assets
|
(1.53
|
%)
|
|
(1.66
|
%)
|
|
(1.83
|
%)
|
|||
Average tangible equity to average tangible assets
|
8.83
|
%
|
|
8.89
|
%
|
|
8.87
|
%
|
(1)
|
Included in interest income on loans are loan fees.
|
(2)
|
Includes non-performing loans.
|
(3)
|
The interest rate spread is the difference between the weighted average yield on average interest-earning assets and the weighted average cost of average interest-bearing liabilities.
|
(4)
|
The interest rate margin is calculated by dividing net interest income by average interest-earning assets.
|
|
Years ended December 31,
|
||||||||||||||||||||||
|
2018 vs. 2017
|
|
2017 vs. 2016
|
||||||||||||||||||||
|
Increase (decrease) due to change in
|
||||||||||||||||||||||
|
Average
volume
|
|
Average
rate
|
|
Net
|
|
Average
volume
|
|
Average
rate
|
|
Net
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Interest Earned On:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing deposits in banks
|
$
|
(88
|
)
|
|
$
|
221
|
|
|
$
|
133
|
|
|
$
|
36
|
|
|
$
|
181
|
|
|
$
|
217
|
|
Investment securities
|
(16
|
)
|
|
210
|
|
|
194
|
|
|
197
|
|
|
199
|
|
|
396
|
|
||||||
Loans, net of unearned fees
|
4,359
|
|
|
1,566
|
|
|
5,925
|
|
|
3,131
|
|
|
(128
|
)
|
|
3,003
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Interest Income
|
4,255
|
|
|
1,997
|
|
|
6,252
|
|
|
3,364
|
|
|
252
|
|
|
3,616
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest Paid On:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
NOW deposits
|
69
|
|
|
329
|
|
|
398
|
|
|
215
|
|
|
94
|
|
|
309
|
|
||||||
Savings deposits
|
21
|
|
|
657
|
|
|
678
|
|
|
113
|
|
|
52
|
|
|
165
|
|
||||||
Money market deposits
|
(20
|
)
|
|
7
|
|
|
(13
|
)
|
|
(16
|
)
|
|
4
|
|
|
(12
|
)
|
||||||
Time deposits
|
960
|
|
|
768
|
|
|
1,728
|
|
|
1
|
|
|
71
|
|
|
72
|
|
||||||
Securities sold under agreements to repurchase
|
(7
|
)
|
|
(1
|
)
|
|
(8
|
)
|
|
8
|
|
|
(3
|
)
|
|
5
|
|
||||||
FHLB and other borrowings
|
(14
|
)
|
|
(112
|
)
|
|
(126
|
)
|
|
(16
|
)
|
|
18
|
|
|
2
|
|
||||||
Subordinated debt
|
2
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Interest Expense
|
1,011
|
|
|
1,648
|
|
|
2,659
|
|
|
307
|
|
|
236
|
|
|
543
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net Interest Income
|
$
|
3,244
|
|
|
$
|
349
|
|
|
$
|
3,593
|
|
|
$
|
3,057
|
|
|
$
|
16
|
|
|
$
|
3,073
|
|
|
December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Securities available for sale at fair value:
|
|
|
|
|
|
||||||
U.S. Government agency securities
|
$
|
11,635
|
|
|
$
|
10,057
|
|
|
$
|
8,413
|
|
Municipal securities
|
487
|
|
|
495
|
|
|
503
|
|
|||
U.S. Government-sponsored enterprises (“GSE”) - residential mortgage-backed securities
|
5,947
|
|
|
8,219
|
|
|
11,255
|
|
|||
U.S. Government collateralized residential mortgage obligations
|
4,423
|
|
|
7,482
|
|
|
9,537
|
|
|||
Corporate debt securities, primarily financial institutions
|
1,915
|
|
|
2,431
|
|
|
2,359
|
|
|||
|
|
|
|
|
|
||||||
Total securities available for sale
|
$
|
24,407
|
|
|
$
|
28,684
|
|
|
$
|
32,067
|
|
|
|
|
|
|
|
||||||
Total equity securities
|
$
|
2,451
|
|
|
$
|
2,448
|
|
|
$
|
2,397
|
|
|
|
|
|
|
|
||||||
Securities held to maturity at amortized cost:
|
|
|
|
|
|
||||||
Municipal securities
|
$
|
36,436
|
|
|
$
|
46,614
|
|
|
$
|
47,806
|
|
GSE - residential mortgage-backed securities
|
7,423
|
|
|
7,339
|
|
|
5,414
|
|
|||
U.S. Government collateralized residential mortgage obligations
|
1,769
|
|
|
2,224
|
|
|
2,801
|
|
|||
Corporate debt securities, primarily financial institutions
|
1,827
|
|
|
1,825
|
|
|
1,822
|
|
|||
|
|
|
|
|
|
||||||
Total securities held to maturity
|
$
|
47,455
|
|
|
$
|
58,002
|
|
|
$
|
57,843
|
|
December 31, 2018
|
|
Due within 1
year
|
|
Due 1 – 5 years
|
|
Due 5 – 10 years
|
|
Due after 10
years
|
|
Total
|
||||||||||||||||||||
(dollars in thousands)
|
|
Amortized
Cost
|
Wtd
Avg
Yield
|
|
Amortized
Cost
|
Wtd
Avg
Yield
|
|
Amortized
Cost
|
Wtd
Avg
Yield
|
|
Amortized
Cost
|
Wtd
Avg
Yield
|
|
Amortized
Cost
|
Wtd
Avg
Yield
|
|||||||||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
U.S. Government agency securities
|
|
$
|
1,254
|
|
2.00
|
%
|
|
$
|
5,493
|
|
2.06
|
%
|
|
$
|
1,423
|
|
6.15
|
%
|
|
$
|
3,630
|
|
6.30
|
%
|
|
$
|
11,800
|
|
3.85
|
%
|
Municipal securities
|
|
—
|
|
—
|
|
|
487
|
|
4.38
|
%
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
487
|
|
4.38
|
%
|
|||||
GSE – residential mortgage-backed securities
|
|
—
|
|
—
|
|
|
351
|
|
2.00
|
%
|
|
2,040
|
|
3.02
|
%
|
|
3,740
|
|
3.46
|
%
|
|
6,131
|
|
3.23
|
%
|
|||||
U.S. Government collateralized residential mortgage obligations
|
|
—
|
|
—
|
|
|
90
|
|
2.00
|
%
|
|
2,506
|
|
1.47
|
%
|
|
2,004
|
|
3.72
|
%
|
|
4,600
|
|
2.46
|
%
|
|||||
Corporate debt securities, primarily financial institutions
|
|
—
|
|
—
|
|
|
1,499
|
|
3.11
|
%
|
|
—
|
|
—
|
|
|
500
|
|
3.51
|
%
|
|
1,999
|
|
3.21
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total securities available for sale
|
|
$
|
1,254
|
|
2.00
|
%
|
|
$
|
7,920
|
|
2.40
|
%
|
|
$
|
5,969
|
|
3.08
|
%
|
|
$
|
9,874
|
|
4.56
|
%
|
|
$
|
25,017
|
|
3.40
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Municipal securities
|
|
$
|
5,415
|
|
2.22
|
%
|
|
$
|
1,290
|
|
3.83
|
%
|
|
$
|
6,244
|
|
4.06
|
%
|
|
$
|
23,487
|
|
4.67
|
%
|
|
$
|
36,436
|
|
4.17
|
%
|
GSE – residential mortgage-backed securities
|
|
—
|
|
—
|
|
|
317
|
|
2.50
|
%
|
|
3,018
|
|
2.50
|
%
|
|
4,088
|
|
3.10
|
%
|
|
7,423
|
|
2.83
|
%
|
|||||
U.S. Government collateralized residential mortgage obligations
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
202
|
|
2.00
|
%
|
|
1,567
|
|
2.52
|
%
|
|
1,769
|
|
2.46
|
%
|
|||||
Corporate debt securities primarily financial institutions
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
1,827
|
|
3.13
|
%
|
|
—
|
|
—
|
|
|
1,827
|
|
3.13
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total securities held to maturity
|
|
$
|
5,415
|
|
2.22
|
%
|
|
$
|
1,607
|
|
3.57
|
%
|
|
$
|
11,291
|
|
3.46
|
%
|
|
$
|
29,142
|
|
4.33
|
%
|
|
$
|
47,455
|
|
3.86
|
%
|
|
December 31,
|
|||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
(in thousands, except for percentages)
|
|||||||||||||||||||
Commercial and industrial
|
$
|
109,362
|
|
|
11.9
|
%
|
|
$
|
101,371
|
|
|
11.9
|
%
|
|
$
|
93,697
|
|
|
12.4
|
%
|
Real estate - construction
|
144,865
|
|
|
15.7
|
%
|
|
118,094
|
|
|
13.9
|
%
|
|
111,914
|
|
|
14.9
|
%
|
|||
Real estate - commercial
|
552,549
|
|
|
60.0
|
%
|
|
537,733
|
|
|
63.2
|
%
|
|
460,685
|
|
|
61.2
|
%
|
|||
Real estate - residential
|
84,123
|
|
|
9.1
|
%
|
|
64,238
|
|
|
7.6
|
%
|
|
59,065
|
|
|
7.8
|
%
|
|||
Consumer
|
31,144
|
|
|
3.4
|
%
|
|
30,203
|
|
|
3.5
|
%
|
|
28,279
|
|
|
3.8
|
%
|
|||
Unearned fees
|
(742
|
)
|
|
(0.1
|
)%
|
|
(765
|
)
|
|
(0.1
|
)%
|
|
(548
|
)
|
|
(0.1
|
)%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total loans
|
$
|
921,301
|
|
|
100.0
|
%
|
|
$
|
850,874
|
|
|
100.0
|
%
|
|
$
|
753,092
|
|
|
100.0
|
%
|
|
December 31,
|
||||||||||||
|
2015
|
|
2014
|
||||||||||
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||
|
|
|
|
|
|
|
|
||||||
|
(in thousands, except for percentages)
|
||||||||||||
Commercial and industrial
|
$
|
100,154
|
|
|
14.5
|
%
|
|
$
|
96,514
|
|
|
15.4
|
%
|
Real estate - construction
|
104,231
|
|
|
15.0
|
%
|
|
89,145
|
|
|
14.2
|
%
|
||
Real estate - commercial
|
422,665
|
|
|
61.0
|
%
|
|
383,777
|
|
|
61.1
|
%
|
||
Real estate - residential
|
39,524
|
|
|
5.7
|
%
|
|
30,808
|
|
|
4.9
|
%
|
||
Consumer
|
27,136
|
|
|
3.9
|
%
|
|
28,095
|
|
|
4.5
|
%
|
||
Unearned fees
|
(560
|
)
|
|
(0.1
|
)%
|
|
(725
|
)
|
|
(0.1
|
)%
|
||
|
|
|
|
|
|
|
|
||||||
Total loans
|
$
|
693,150
|
|
|
100.0
|
%
|
|
$
|
627,614
|
|
|
100.0
|
%
|
As of December 31, 2018
|
|
Due within 1
year
|
|
Due 1–5 years
|
|
Due after 5
years
|
|
Total
|
||||||||
|
|
|
|
(in thousands)
|
|
|
||||||||||
Commercial and industrial
|
|
$
|
48,292
|
|
|
$
|
35,065
|
|
|
$
|
26,005
|
|
|
$
|
109,362
|
|
Real estate - construction
|
|
83,866
|
|
|
27,979
|
|
|
33,020
|
|
|
144,865
|
|
||||
Real estate - commercial
|
|
11,700
|
|
|
86,354
|
|
|
454,495
|
|
|
552,549
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total
|
|
$
|
143,858
|
|
|
$
|
149,398
|
|
|
$
|
513,520
|
|
|
$
|
806,776
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed rate loans
|
|
$
|
57,015
|
|
|
$
|
85,342
|
|
|
$
|
32,968
|
|
|
$
|
175,325
|
|
Variable rate loans
|
|
86,843
|
|
|
64,056
|
|
|
480,552
|
|
|
631,451
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total
|
|
$
|
143,858
|
|
|
$
|
149,398
|
|
|
$
|
513,520
|
|
|
$
|
806,776
|
|
|
Years ended December 31,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-Performing Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-Performing Loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
765
|
|
|
$
|
790
|
|
|
$
|
119
|
|
|
$
|
138
|
|
|
$
|
119
|
|
Real estate – construction
|
150
|
|
|
150
|
|
|
—
|
|
|
—
|
|
|
407
|
|
|||||
Real estate – commercial
|
54
|
|
|
219
|
|
|
666
|
|
|
2,244
|
|
|
4,722
|
|
|||||
Real estate – residential
|
227
|
|
|
717
|
|
|
763
|
|
|
796
|
|
|
694
|
|
|||||
Consumer
|
194
|
|
|
194
|
|
|
—
|
|
|
—
|
|
|
295
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Non-Performing Loans
|
1,390
|
|
|
2,070
|
|
|
1,548
|
|
|
3,178
|
|
|
6,237
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
OREO and repossessed assets
|
585
|
|
|
—
|
|
|
259
|
|
|
411
|
|
|
1,603
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Non-Performing Assets
|
$
|
1,975
|
|
|
$
|
2,070
|
|
|
$
|
1,807
|
|
|
$
|
3,589
|
|
|
$
|
7,840
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratios:
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-Performing loans to total loans
|
0.15
|
%
|
|
0.24
|
%
|
|
0.21
|
%
|
|
0.46
|
%
|
|
0.99
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-Performing assets to total assets
|
0.18
|
%
|
|
0.20
|
%
|
|
0.19
|
%
|
|
0.42
|
%
|
|
1.00
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Troubled Debt Restructured Loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Performing
|
$
|
6,842
|
|
|
$
|
6,053
|
|
|
$
|
8,075
|
|
|
$
|
9,289
|
|
|
$
|
16,284
|
|
Non-performing (included in non-performing assets above)
|
877
|
|
|
994
|
|
|
157
|
|
|
1,552
|
|
|
4,269
|
|
|
Years ended December 31,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
(in thousands, except for percentages)
|
||||||||||||||||||
Balance at beginning of year
|
$
|
10,668
|
|
|
$
|
9,565
|
|
|
$
|
8,713
|
|
|
$
|
8,069
|
|
|
$
|
7,872
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision charged to expense
|
775
|
|
|
1,530
|
|
|
515
|
|
|
490
|
|
|
621
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Recoveries of loans charged off:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
33
|
|
|
18
|
|
|
12
|
|
|
12
|
|
|
454
|
|
|||||
Real estate - construction
|
2
|
|
|
12
|
|
|
12
|
|
|
217
|
|
|
—
|
|
|||||
Real estate - commercial
|
26
|
|
|
24
|
|
|
696
|
|
|
2
|
|
|
177
|
|
|||||
Real estate - residential
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|||||
Consumer
|
22
|
|
|
6
|
|
|
66
|
|
|
5
|
|
|
46
|
|
|||||
Loans charged-off:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
(115
|
)
|
|
(381
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Real estate - construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Real estate - commercial
|
(13
|
)
|
|
—
|
|
|
(444
|
)
|
|
—
|
|
|
(990
|
)
|
|||||
Real estate - residential
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|||||
Consumer
|
—
|
|
|
(106
|
)
|
|
(5
|
)
|
|
(82
|
)
|
|
(137
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Recoveries (charge-offs), net
|
(45
|
)
|
|
(427
|
)
|
|
337
|
|
|
154
|
|
|
(424
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance of allowance at end of year
|
$
|
11,398
|
|
|
$
|
10,668
|
|
|
$
|
9,565
|
|
|
$
|
8,713
|
|
|
$
|
8,069
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratio of net charge-offs (recoveries) to average loans outstanding
|
0.01
|
%
|
|
0.05
|
%
|
|
(0.05
|
%)
|
|
(0.02
|
)%
|
|
0.07
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance of allowance as a percent of loans at year-end
|
1.24
|
%
|
|
1.25
|
%
|
|
1.27
|
%
|
|
1.26
|
%
|
|
1.29
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratio of allowance to non-performing loans at year-end
|
820.00
|
%
|
|
515.36
|
%
|
|
617.89
|
%
|
|
274.17
|
%
|
|
129.37
|
%
|
|
December 31,
|
||||||||||||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||||||||||||||||||||
|
|
|
Percent of
|
|
|
|
Percent of
|
|
|
|
Percent of
|
||||||||||||||||||
(dollars in thousands)
|
Amount
|
|
Allowance
to total
allowance
|
|
Loans
to total
loans
|
|
Amount
|
|
Allowance
to total
allowance
|
|
Loans
to total
loans
|
|
Amount
|
|
Allowance
to total
allowance
|
|
Loans
to total
loans
|
||||||||||||
Balance applicable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
745
|
|
|
6.5
|
%
|
|
11.9
|
%
|
|
$
|
930
|
|
|
8.7
|
%
|
|
11.9
|
%
|
|
$
|
844
|
|
|
8.8
|
%
|
|
12.4
|
%
|
Real estate - construction
|
2,049
|
|
|
18.0
|
%
|
|
15.7
|
%
|
|
1,389
|
|
|
13.0
|
%
|
|
13.9
|
%
|
|
1,276
|
|
|
13.3
|
%
|
|
14.9
|
%
|
|||
Real estate - commercial
|
7,283
|
|
|
63.9
|
%
|
|
59.9
|
%
|
|
7,325
|
|
|
68.7
|
%
|
|
63.1
|
%
|
|
6,315
|
|
|
66.1
|
%
|
|
61.1
|
%
|
|||
Real estate - residential
|
668
|
|
|
5.9
|
%
|
|
9.1
|
%
|
|
502
|
|
|
4.7
|
%
|
|
7.6
|
%
|
|
463
|
|
|
4.8
|
%
|
|
7.8
|
%
|
|||
Consumer
|
147
|
|
|
1.3
|
%
|
|
3.4
|
%
|
|
174
|
|
|
1.6
|
%
|
|
3.5
|
%
|
|
244
|
|
|
2.6
|
%
|
|
3.8
|
%
|
|||
Unallocated
|
506
|
|
|
4.4
|
%
|
|
—
|
%
|
|
348
|
|
|
3.3
|
%
|
|
—%
|
|
|
423
|
|
|
4.4
|
%
|
|
—%
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total
|
$
|
11,398
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
$
|
10,668
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
$
|
9,565
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
December 31,
|
||||||||||||||||||
|
2015
|
|
2014
|
||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
Percent of
|
|
|
|
Percent of
|
||||||||||||
(dollars in thousands)
|
Amount
|
|
Allowance
to total
allowance
|
|
Loans
to total
loans
|
|
Amount
|
|
Allowance
to total
allowance
|
|
Loans
to total
loans
|
||||||||
Balance applicable to:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
$
|
990
|
|
|
11.4
|
%
|
|
14.5
|
%
|
|
$
|
1,044
|
|
|
12.9
|
%
|
|
15.4
|
%
|
Real estate - construction
|
1,283
|
|
|
14.7
|
%
|
|
15.0
|
%
|
|
1,454
|
|
|
18.0
|
%
|
|
14.2
|
%
|
||
Real estate - commercial
|
5,599
|
|
|
64.2
|
%
|
|
60.9
|
%
|
|
4,624
|
|
|
57.3
|
%
|
|
61.0
|
%
|
||
Real estate - residential
|
304
|
|
|
3.5
|
%
|
|
5.7
|
%
|
|
223
|
|
|
2.8
|
%
|
|
4.9
|
%
|
||
Consumer
|
242
|
|
|
2.8
|
%
|
|
3.9
|
%
|
|
565
|
|
|
7.0
|
%
|
|
4.5
|
%
|
||
Unallocated
|
295
|
|
|
3.4
|
%
|
|
—%
|
|
|
159
|
|
|
2.0
|
%
|
|
—%
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total
|
$
|
8,713
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
$
|
8,069
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
Years ended December 31,
|
|||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
(dollars in thousands)
|
Average
Balance
|
|
Average
Rate
|
|
Average
Balance
|
|
Average
Rate
|
|
Average
Balance
|
|
Average
Rate
|
|||||||||
Non-interest-bearing demand
|
$
|
168,388
|
|
|
—
|
|
|
$
|
163,707
|
|
|
—
|
|
|
$
|
150,495
|
|
|
—
|
|
Interest-bearing demand (NOW)
|
215,964
|
|
|
0.63
|
%
|
|
201,490
|
|
|
0.48
|
%
|
|
151,360
|
|
|
0.43
|
%
|
|||
Savings deposits
|
260,216
|
|
|
0.77
|
%
|
|
256,222
|
|
|
0.52
|
%
|
|
233,514
|
|
|
0.50
|
%
|
|||
Money market deposits
|
51,481
|
|
|
0.18
|
%
|
|
63,093
|
|
|
0.17
|
%
|
|
72,721
|
|
|
0.16
|
%
|
|||
Time deposits
|
201,366
|
|
|
1.84
|
%
|
|
135,326
|
|
|
1.45
|
%
|
|
133,842
|
|
|
1.42
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total
|
$
|
897,415
|
|
|
0.80
|
%
|
|
$
|
819,838
|
|
|
0.53
|
%
|
|
$
|
741,932
|
|
|
0.52
|
%
|
|
December 31,
2018
|
||
Due in three months or less
|
$
|
10,745
|
|
Due over three months through twelve months
|
63,953
|
|
|
Due over one year through three years
|
40,829
|
|
|
Due over three years
|
7,869
|
|
|
|
|
||
Total certificates of deposit $100,000 and over
|
$
|
123,396
|
|
|
Years ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
2017
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,000
|
|
2018
|
—
|
|
|
3,300
|
|
|
3,300
|
|
|||
2019
|
2,800
|
|
|
2,800
|
|
|
2,800
|
|
|||
2020
|
2,700
|
|
|
2,700
|
|
|
2,700
|
|
|||
2021
|
8,500
|
|
|
8,500
|
|
|
3,500
|
|
|||
2022
|
7,500
|
|
|
7,500
|
|
|
—
|
|
|||
2023
|
1,000
|
|
|
1,000
|
|
|
1,000
|
|
|||
|
|
|
|
|
|
||||||
Total FHLB borrowings
|
$
|
22,500
|
|
|
$
|
25,800
|
|
|
$
|
25,300
|
|
|
Years ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
|
|
|
||||||
|
(dollars in thousands)
|
||||||||||
Balance at year-end
|
$
|
19,402
|
|
|
$
|
27,120
|
|
|
$
|
19,915
|
|
Average during the year
|
19,738
|
|
|
22,066
|
|
|
19,309
|
|
|||
Maximum month-end balance
|
23,884
|
|
|
27,120
|
|
|
22,105
|
|
|||
Weighted average rate during the year
|
0.29
|
%
|
|
0.30
|
%
|
|
0.32
|
%
|
|||
Weighted average rate at year-end
|
0.24
|
%
|
|
0.25
|
%
|
|
0.24
|
%
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Within one year
|
|
After one but within three years
|
|
After three but within five years
|
|
After five years
|
|
Total
|
||||||||||
(in thousands)
|
|
|
|
|
|
|
|
|
|
||||||||||
Off Balance Sheet Arrangements:
|
|
|
|
|
|
|
|
|
|||||||||||
Lines of credit secured by 1-4 family residential properties
|
$
|
1,476
|
|
|
$
|
2,740
|
|
|
$
|
3,659
|
|
|
$
|
17,953
|
|
|
$
|
25,828
|
|
Commitments to fund commercial real estate and construction loans
|
62,710
|
|
|
33,089
|
|
|
272
|
|
|
81,579
|
|
|
177,650
|
|
|||||
Commitments to fund commercial and industrial and other loans
|
40,470
|
|
|
11,173
|
|
|
1,477
|
|
|
7,459
|
|
|
60,579
|
|
|||||
Commercial and financial letters of credit
|
4,220
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
4,245
|
|
|||||
Contractual Obligations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Time deposits
|
134,149
|
|
|
93,930
|
|
|
16,671
|
|
|
—
|
|
|
244,750
|
|
|||||
FHLB and other borrowings
|
2,800
|
|
|
18,700
|
|
|
1,000
|
|
|
—
|
|
|
22,500
|
|
|||||
Subordinated debentures
|
—
|
|
|
—
|
|
|
—
|
|
|
9,923
|
|
|
9,923
|
|
|||||
Operating lease obligations
|
1,481
|
|
|
2,804
|
|
|
2,955
|
|
|
8,508
|
|
|
15,748
|
|
|||||
Retirement obligations projected
|
31
|
|
|
64
|
|
|
338
|
|
|
2,039
|
|
|
2,472
|
|
|||||
Total off-balance sheet arrangements and contractual obligations
|
$
|
247,337
|
|
|
$
|
162,525
|
|
|
$
|
26,372
|
|
|
$
|
127,461
|
|
|
$
|
563,695
|
|
|
|
Actual
|
|
For Capital
Adequacy Purposes
|
|
To be Well
Capitalized under
Prompt Corrective
Action Regulations*
|
|||||||||
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
(Dollars in Thousands)
|
|
|
|
|
|||||
As of December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Common Equity Tier 1 Capital (to risk weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Two River Bancorp
|
|
$
|
98,758
|
|
|
10.14
|
%
|
|
$
>
43,808
|
|
>4.50%
|
|
N/A
|
|
N/A
|
Two River Community Bank
|
|
107,891
|
|
|
11.09
|
%
|
|
>
43,782
|
|
>
4.50%
|
|
$ >63,240
|
|
>
6.50%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total Capital (to risk weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Two River Bancorp
|
|
120,156
|
|
|
12.34
|
%
|
|
>
77,882
|
|
>
8.00%
|
|
N/A
|
|
N/A
|
|
Two River Community Bank
|
|
119,289
|
|
|
12.26
|
%
|
|
>
77,834
|
|
>
8.00%
|
|
>
97,293
|
|
>
10.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Tier 1 Capital (to risk weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Two River Bancorp
|
|
98,758
|
|
|
10.14
|
%
|
|
>
58,411
|
|
>
6.00%
|
|
>
58,411
|
|
>
6.00%
|
|
Two River Community Bank
|
|
107,891
|
|
|
11.09
|
%
|
|
>
58,376
|
|
>
6.00%
|
|
>
77,834
|
|
>
8.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Tier 1 Capital (to average assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Two River Bancorp
|
|
98,758
|
|
|
9.10
|
%
|
|
>
43,389
|
|
>
4.00%
|
|
N/A
|
|
N/A
|
|
Two River Community Bank
|
|
107,891
|
|
|
9.95
|
%
|
|
>
43,363
|
|
>
4.00%
|
|
>
54,204
|
|
>
5.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
As of December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Common Equity Tier 1 Capital (to risk weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Two River Bancorp
|
|
$
|
88,733
|
|
|
9.68
|
%
|
|
$
>
41,250
|
|
>
4.50%
|
|
N/A
|
|
N/A
|
Two River Community Bank
|
|
97,723
|
|
|
10.66
|
%
|
|
>
41,253
|
|
>
4.50%
|
|
$
>
59,587
|
|
>
6.50%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total Capital (to risk weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Two River Bancorp
|
|
109,401
|
|
|
11.93
|
%
|
|
>
73,362
|
|
>
8.00%
|
|
N/A
|
|
N/A
|
|
Two River Community Bank
|
|
108,391
|
|
|
11.82
|
%
|
|
>
73,361
|
|
>
8.00%
|
|
>
91,701
|
|
>
10.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Tier 1 Capital (to risk weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Two River Bancorp
|
|
88,733
|
|
|
9.68
|
%
|
|
>
55,000
|
|
>
6.00%
|
|
>
55,000
|
|
>
6.00%
|
|
Two River Community Bank
|
|
97,723
|
|
|
10.66
|
%
|
|
>
55,004
|
|
>
6.00%
|
|
>
73,338
|
|
>
8.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Tier 1 Capital (to average assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Two River Bancorp
|
|
88,733
|
|
|
8.85
|
%
|
|
>
40,105
|
|
>
4.00%
|
|
N/A
|
|
N/A
|
|
Two River Community Bank
|
|
97,723
|
|
|
9.76
|
%
|
|
>
40,050
|
|
>
4.00%
|
|
>
50,063
|
|
>
5.00%
|
i.
|
a common equity Tier 1 capital ratio of 7.00%;
|
ii.
|
a Tier 1 Risk based capital ratio of 8.50%; and
|
iii.
|
a Total Risk based capital ratio of 10.50%.
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Under six months
|
Six months through one year
|
More than one year through three years
|
More than three years through five years
|
More than five years through ten years
|
More than ten years and not repricing
|
Total
|
||||||||||||||
(in thousands, except percentages)
|
|||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||||||||
Cash and due from banks
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
24,067
|
|
$
|
24,067
|
|
Interest-bearing deposits in bank
|
24,059
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
24,059
|
|
|||||||
Securities
|
13,606
|
|
7,504
|
|
14,992
|
|
6,855
|
|
28,286
|
|
3,070
|
|
74,313
|
|
|||||||
Restricted stock
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
6,082
|
|
6,082
|
|
|||||||
Loans, including held for sale
|
251,055
|
|
85,955
|
|
250,288
|
|
259,081
|
|
71,703
|
|
4,715
|
|
922,797
|
|
|||||||
Other assets
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
45,101
|
|
45,101
|
|
|||||||
Total assets
|
$
|
288,720
|
|
$
|
93,459
|
|
$
|
265,280
|
|
$
|
265,936
|
|
$
|
99,989
|
|
$
|
83,035
|
|
$
|
1,096,419
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Liabilities and shareholders' equity:
|
|
|
|
|
|
||||||||||||||||
Non-interest bearing deposits
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
176,655
|
|
$
|
176,655
|
|
Interest-bearing demand, savings and money market deposits
|
244,651
|
|
—
|
|
61,704
|
|
99,188
|
|
90,406
|
|
—
|
|
495,949
|
|
|||||||
Time deposits
|
45,868
|
|
84,405
|
|
98,055
|
|
16,422
|
|
—
|
|
—
|
|
244,750
|
|
|||||||
Borrowed funds and subordinated debt
|
21,202
|
|
1,000
|
|
21,123
|
|
8,500
|
|
—
|
|
—
|
|
51,825
|
|
|||||||
Other liabilities
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
10,742
|
|
10,742
|
|
|||||||
Shareholders' equity
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
116,498
|
|
116,498
|
|
|||||||
Total liabilities and shareholders' equity
|
$
|
311,721
|
|
$
|
85,405
|
|
$
|
180,882
|
|
$
|
124,110
|
|
$
|
90,406
|
|
$
|
303,895
|
|
$
|
1,096,419
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Gap
|
$
|
(23,001
|
)
|
$
|
8,054
|
|
$
|
84,398
|
|
$
|
141,826
|
|
$
|
9,583
|
|
$
|
(220,860
|
)
|
|
||
Cumulative gap
|
$
|
(23,001
|
)
|
$
|
(14,947
|
)
|
$
|
69,451
|
|
$
|
211,277
|
|
$
|
220,860
|
|
$
|
—
|
|
|
||
Cumulative gap to total assets
|
(2.1
|
%)
|
(1.4
|
%)
|
6.3
|
%
|
19.3
|
%
|
20.1
|
%
|
—
|
|
|
|
Immediate Shock in Interest Rates
|
|
|
||||||||||
December 31, 2018
|
200 basis point increase
|
|
200 basis point decrease
|
|
|
||||||||
(dollars in thousands)
|
Dollar change
|
|
Percent of
change
|
|
Dollar change
|
|
Percent of
change
|
|
ALCO
Policy Guideline
|
||||
Twelve month horizon:
|
|
|
|
|
|
|
|
|
|
||||
Net interest income change
|
$
|
(668
|
)
|
|
-1.8%
|
|
$
|
(661
|
)
|
|
-1.8%
|
|
-10.0%
|
|
Immediate Shock in Interest Rates
|
|
|
||||||||||
December 31, 2017
|
200 basis point increase
|
|
200 basis point decrease
|
|
|
||||||||
(dollars in thousands)
|
Dollar change
|
|
Percent of
change
|
|
Dollar change
|
|
Percent of
change
|
|
ALCO
Policy Guideline
|
||||
Twelve month horizon:
|
|
|
|
|
|
|
|
|
|
||||
Net interest income change
|
$
|
(1,530
|
)
|
|
-4.4%
|
|
$
|
(1,525
|
)
|
|
-4.4%
|
|
-10.0%
|
|
|
|
|
Economic Value of Portfolio Equity
|
||||||||||
|
|
|
|
December 31, 2018
|
||||||||||
Change in Interest Rates
(dollars in thousands)
|
|
Base Case
(0 bp)
|
|
-200bp
|
|
+200bp
|
|
ALCO
Policy Guideline
|
||||||
Economic Value of Equity
|
|
$
|
146,557
|
|
|
$
|
149,917
|
|
|
$
|
137,211
|
|
|
|
$ Change
|
|
|
|
3,360
|
|
|
(9,346
|
)
|
|
|
||||
% Change to Present Value of Equity
|
|
|
|
2.3
|
%
|
|
-6.4
|
%
|
|
-25.0%
|
/s/ WILLIAM D. MOSS
|
|
/s/ A. RICHARD ABRAHAMIAN
|
||
Name:
|
William D. Moss
|
|
Name:
|
A. Richard Abrahamian
|
Title:
|
Chairman of the Board, President and
Chief Executive Officer
|
|
Title:
|
Executive Vice President and Chief Financial Officer
|
Date:
|
March 15, 2019
|
|
Date:
|
March 15, 2019
|
Plan category
|
|
Number of securities
to be issued upon
exercise of outstanding
options, warrants and
rights
(a)
|
|
Weighted-average exercise
price of outstanding
options, warrants and
rights
(b)
|
|
Number of securities
remaining available for
future issuance under
equity compensation plans
(excluding securities
reflected in column (a))
(c)
|
Equity compensation plans approved by security holders
|
|
242,533
|
|
$5.89
|
|
111,419
|
|
|
|
|
|
|
|
Equity compensation plans not approved by security holders
|
|
—
|
|
N/A
|
|
—
|
Total
|
|
242,533
|
|
$5.89
|
|
111,419
|
(1)
|
The Company may issue these shares pursuant to options and restricted stock awards.
|
Exhibit No.
|
|
Description
|
||
|
Amended and Restated Certificate of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 to the Registration Statement No. 333-205780 on Form S-3 filed with the SEC on July 21, 2015)
|
|||
|
|
|
||
|
Amended and Restated By-laws of the Registrant
|
|||
|
|
|
||
|
Specimen certificate representing the Registrant’s common stock, no par value per share (incorporated by reference to Exhibit 4.1 to the Registrant’s Annual Report on Form 10-K filed with the SEC on March 31, 2014)
|
|||
|
|
|
||
|
Form of the Registrant’s Subordinated Note (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on December 16, 2015)
|
|||
|
|
|
||
|
Shareholder Rights Agreement, dated as of July 20, 2011, between the Registrant and Registrar and Transfer Company (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on July 26, 2011)
|
|||
|
|
|
||
|
Form of Rights Certificate of the Registrant (incorporated by reference to Exhibit B to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on July 26, 2011)
|
|||
|
|
|
||
#
|
Two River Bancorp Amended and Restated Employee Stock Purchase Plan (incorporated by referenced to Exhibit 10.1 to Registrant's Quarterly Report on Form 10-Q filed with the SEC on November 14, 2013)
|
|||
|
|
|
#
|
Amended and Restated Supplemental Executive Retirement Agreement between Two River Community Bank and William D. Moss dated July 1, 2013 (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K filed with the SEC on August 23, 2013)
|
|||
|
|
|
||
#
|
Supplemental Executive Retirement Agreement between Two River Community Bank and Alan B. Turner (incorporated by reference to Exhibit 10.8 to Registration Statement No. 333-129638 on Form S-4 filed with the SEC on November 10, 2005 (the “S-4”))
|
|||
|
|
|
||
#
|
First Amendment to the Two River Community Bank Supplemental Executive Retirement Agreement dated January 1, 2005, between Two River Community Bank and Alan B. Turner, effective as of January 1, 2005 (incorporated by reference to Exhibit 10.20 to the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2009 filed with the SEC on May 15, 2009)
|
|||
|
|
|
||
#
|
Second Amendment to the Two River Community Bank Supplemental Executive Retirement Agreement dated March 1, 2010 by and between Two River Community Bank and Alan B. Turner (incorporated by reference to Exhibit 10.17 to the Registrant’s Annual Report on Form 10-K filed with the SEC on March 29, 2013)
|
|||
|
|
|
||
#
|
Third Amendment to the Two River Community Bank Supplemental Executive Retirement Agreement dated June 11, 2010 between Two River Community Bank and Alan B. Turner, effective as of June 1, 2010 (incorporated by reference to Exhibit 10.6 to the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2010 filed with SEC on August 16, 2010)
|
|||
|
|
|
||
#
|
Fourth Amendment to the Two River Community Bank Supplemental Executive Retirement Agreement dated as of June 1, 2013 between Two River Community Bank and Alan B. Turner (incorporated by reference to Exhibit 10.5 to the Registrant’s Current Report on Form 8-K filed with SEC on August 23, 2013)
|
|||
|
|
|
||
#
|
Fifth Amendment to Supplemental Executive Retirement Agreement dated as of September 30, 2016, between Two River Community Bank and Alan B. Turner (incorporated by reference to Exhibit 10.3 to the Registrant’s Current Report on the Form 8-K filed with the SEC on October 3, 2016)
|
|||
|
|
|
||
#
|
Two River Bancorp 2007 Equity Incentive Plan (incorporated by reference to Exhibit A to the Registrant’s Definitive Proxy Statement on Schedule 14A filed with the SEC on April 17, 2007)
|
|||
|
|
|
||
#
|
Form of Incentive Stock Option Agreement under 2007 Equity Incentive Plan (incorporated by reference to Exhibit 10.8 to the Registrant’s Annual Report on Form 10-K filed with the SEC on March 29, 2013)
|
|||
|
|
|
||
#
|
Form of Non-Qualified Stock Option Agreement under 2007 Equity Incentive Plan (incorporated by reference to Exhibit 10.7 to the Registrant’s Annual Report on Form 10-K filed with the SEC on March 31, 2014)
|
|||
|
|
|
||
#
|
Form of Restricted Stock Agreement under 2007 Equity Incentive Plan (incorporated by reference to Exhibit 10.15 to the Registrant’s Annual Report on Form 10-K filed with the SEC on March 31, 2014)
|
|||
|
|
|
||
#
|
Form of the Subordinated Note Purchase Agreement dated as of December 14, 2015 between the Registrant and certain purchasers (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on December 16, 2015)
|
|||
|
|
|
||
#
|
Change in Control Agreement dated as of June 1, 2013, among the Registrant, Two River Community Bank and Alan B. Turner (incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed with the SEC on August 23, 2013)
|
|||
|
|
|
||
#
|
First Amendment to Change in Control Agreement dated as of May 29, 2015 by and among the Registrant, Two River Community Bank and Alan B. Turner (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on the Form 8-K filed with the SEC on May 29, 2015)
|
|||
|
|
|
||
#
|
Second Amendment to Change in Control Agreement dated as of May 31, 2017 by and among Registrant, Two River Community Bank and Alan B. Turner (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the SEC on June 6, 2017)
|
|||
|
|
|
||
#
|
Change in Control Agreement, dated as of June 1, 2013, among the Registrant, Two River Community Bank and A. Richard Abrahamian (incorporated by reference to Exhibit 10.3 to the Registrant’s Current Report on Form 8-K filed with SEC on August 23, 2013)
|
|||
|
|
|
||
#
|
First Amendment to Change in Control Agreement dated as of May 29, 2015 by and among the Registrant, Two River Community Bank and A. Richard Abrahamian (incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on the Form 8-K filed with the SEC on May 29, 2015)
|
|||
|
|
|
#
|
Second Amendment to Change in Control Agreement dated as of May 31, 2017 by and among Registrant, Two River Community Bank and A. Richard Abrahamian (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed with the SEC on June 6, 2017)
|
|||
|
|
|
||
#
|
Change in Control Agreement, dated as of June 25, 2018, among the Registrant, Two River Community Bank and Anthony A. Mero (incorporated by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2018 filed with the SEC on August 8, 2018)
|
|||
|
|
|
||
#
|
Two River Community Bank 2014 Incentive Bonus Program (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report as Form 10-Q for the quarter ended June 30, 2014 filed with the SEC on August 14, 2014)
|
|||
|
|
|
||
#
|
Two River Community Bank Supplemental Executive Retirement Agreement dated as of January 1, 2012 between Two River Community Bank and A. Richard Abrahamian (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012 filed with the SEC on May 15, 2012)
|
|||
|
|
|
||
#
|
First Amendment to the Two River Community Bank Supplemental Executive Retirement Agreement dated as of June 1, 2013 between Two River Community Bank and A. Richard Abrahamian (incorporated by reference to Exhibit 10.6 to the Registrant’s Current Report on Form 8-K filed with SEC on August 23, 2013)
|
|||
|
|
|
||
#
|
Second Amendment to Supplemental Executive Retirement Agreement dated as of September 30, 2016, between Two River Community Bank and A. Richard Abrahamian (incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on the Form 8-K filed with the SEC on October 3, 2016)
|
|||
|
|
|
||
#
|
Deferred Compensation Agreement dated as of September 7, 2016, between Two River Community Bank and William D. Moss (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on the Form 8-K filed with the SEC on September 9, 2016)
|
|||
|
|
|
||
#
|
Supplemental Executive Retirement Agreement dated as of September 30, 2016, between Two River Community Bank and Anthony Mero (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on the Form 8-K filed with the SEC on October 3, 2016)
|
|||
|
|
|
||
#
|
Employment Agreement dated as of June 1, 2016, among the Registrant, Two River Community Bank and William D. Moss (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on June 3, 2016)
|
|||
|
|
|
||
#
|
First Amendment to Employment Agreement dated as of May 31, 2017, by and among Registrant, Two River Community Bank and William D. Moss (incorporated by reference to Exhibit 10.3 to the Registrant's Current Report on Form 8-K filed with the SEC on June 6, 2017)
|
101.INS
|
XBRL Instance Document
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase
|
|
|
(c)
|
Financial Statement Schedules
|
|
|
These schedules are not required or are not applicable under Securities Exchange Commission accounting regulations and therefore have been omitted.
|
|
Page
|
|
|
|
|
Consolidated Balance Sheets – December 31,
2018 and 2017
|
|
|
|
Consolidated Statements of Operations – Years Ended December 31, 201
8, 2017 and 2016
|
F-
5
|
|
|
F-
6
|
|
|
|
F-
7
|
|
|
|
Consolidated Statements of Cash Flows – Years Ended December 31, 201
8, 2017 and 2016
|
F-
9
|
|
|
F-1
1
|
Consolidated Balance Sheets
|
|||||||
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In Thousands, Except Share Data)
|
||||||
ASSETS
|
|
|
|
||||
Cash and due from banks
|
$
|
24,067
|
|
|
$
|
29,575
|
|
Interest-bearing deposits in bank
|
24,059
|
|
|
18,644
|
|
||
Cash and cash equivalents
|
48,126
|
|
|
48,219
|
|
||
|
|
|
|
||||
Securities available for sale, at fair value (amortized cost of $25,017 and $29,127 at December 31 2018 and December 31, 2017, respectively)
|
24,407
|
|
|
28,684
|
|
||
Securities held to maturity, at amortized cost (fair value of $47,266 and $58,549 at December 31, 2018 and 2017, respectively)
|
47,455
|
|
|
58,002
|
|
||
Equity securities, at fair value
|
2,451
|
|
|
2,448
|
|
||
Restricted investments, at cost
|
6,082
|
|
|
5,430
|
|
||
Loans held for sale
|
1,496
|
|
|
2,581
|
|
||
Loans
|
921,301
|
|
|
850,874
|
|
||
Allowance for loan losses
|
(11,398
|
)
|
|
(10,668
|
)
|
||
Net Loans
|
909,903
|
|
|
840,206
|
|
||
|
|
|
|
||||
Other real estate owned (“OREO”)
|
585
|
|
|
—
|
|
||
Bank owned life insurance
|
22,098
|
|
|
21,573
|
|
||
Premises and equipment, net
|
5,917
|
|
|
6,239
|
|
||
Accrued interest receivable
|
2,583
|
|
|
2,554
|
|
||
Goodwill
|
18,109
|
|
|
18,109
|
|
||
Other assets
|
7,207
|
|
|
5,753
|
|
||
|
|
|
|
||||
Total Assets
|
$
|
1,096,419
|
|
|
$
|
1,039,798
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
||||
Liabilities:
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Non-interest bearing
|
$
|
176,655
|
|
|
$
|
167,297
|
|
Interest-bearing
|
740,699
|
|
|
694,260
|
|
||
Total Deposits
|
917,354
|
|
|
861,557
|
|
||
|
|
|
|
||||
Securities sold under agreements to repurchase
|
19,402
|
|
|
27,120
|
|
||
FHLB and other borrowings
|
22,500
|
|
|
25,800
|
|
||
Subordinated debt
|
9,923
|
|
|
9,888
|
|
||
Accrued interest payable
|
119
|
|
|
70
|
|
||
Other liabilities
|
10,623
|
|
|
8,792
|
|
||
|
|
|
|
||||
Total Liabilities
|
979,921
|
|
|
933,227
|
|
||
|
|
|
|
||||
Shareholders’ Equity
|
|
|
|
||||
Preferred stock, no par value; 6,500,000 shares authorized; no shares issued and outstanding
|
—
|
|
|
—
|
|
||
Common stock, no par value; 25,000,000 shares authorized;
Issued – 8,935,437 and 8,782,124 at December 31, 2018 and 2017, respectively Outstanding – 8,606,992 and 8,470,030 at December 31, 2018 and 2017, respectively |
80,481
|
|
|
79,678
|
|
||
Retained earnings
|
39,109
|
|
|
29,593
|
|
||
Treasury stock, at cost; 328,445 and 312,094 shares at December 31, 2018 and 2017, respectively
|
(2,647
|
)
|
|
(2,396
|
)
|
||
Accumulated other comprehensive loss
|
(445
|
)
|
|
(304
|
)
|
||
Total Shareholders’ Equity
|
116,498
|
|
|
106,571
|
|
||
|
|
|
|
||||
Total Liabilities and Shareholders’ Equity
|
$
|
1,096,419
|
|
|
$
|
1,039,798
|
|
See notes to consolidated financial statements.
|
Consolidated Statements of Operations
|
|||||||||||
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
|
|
|
||||||
|
(In Thousands, Except Per Share Data)
|
||||||||||
Interest Income
|
|
|
|
|
|
||||||
Loans, including fees
|
$
|
41,726
|
|
|
$
|
35,801
|
|
|
$
|
32,798
|
|
Securities:
|
|
|
|
|
|
||||||
Taxable
|
1,175
|
|
|
988
|
|
|
776
|
|
|||
Tax-exempt
|
1,108
|
|
|
1,101
|
|
|
917
|
|
|||
Interest-bearing deposits
|
483
|
|
|
350
|
|
|
133
|
|
|||
Total Interest Income
|
44,492
|
|
|
38,240
|
|
|
34,624
|
|
|||
Interest Expense
|
|
|
|
|
|
||||||
Deposits
|
7,154
|
|
|
4,363
|
|
|
3,829
|
|
|||
Securities sold under agreements to repurchase
|
58
|
|
|
66
|
|
|
61
|
|
|||
FHLB and other borrowings
|
494
|
|
|
620
|
|
|
618
|
|
|||
Subordinated debt
|
660
|
|
|
658
|
|
|
656
|
|
|||
Total Interest Expense
|
8,366
|
|
|
5,707
|
|
|
5,164
|
|
|||
Net Interest Income
|
36,126
|
|
|
32,533
|
|
|
29,460
|
|
|||
Provision for Loan Losses
|
775
|
|
|
1,530
|
|
|
515
|
|
|||
Net Interest Income after Provision for Loan Losses
|
35,351
|
|
|
31,003
|
|
|
28,945
|
|
|||
|
|
|
|
|
|
||||||
Non-Interest Income
|
|
|
|
|
|
||||||
Service fees on deposit accounts
|
880
|
|
|
772
|
|
|
587
|
|
|||
Mortgage banking
|
1,288
|
|
|
1,583
|
|
|
1,162
|
|
|||
Other loan fees
|
902
|
|
|
588
|
|
|
610
|
|
|||
Earnings from investment in bank owned life insurance
|
525
|
|
|
544
|
|
|
477
|
|
|||
Death benefit on bank owned life insurance
|
—
|
|
|
—
|
|
|
862
|
|
|||
Gain on sale of SBA loans
|
1,197
|
|
|
1,052
|
|
|
868
|
|
|||
Net gain on sale of securities
|
—
|
|
|
—
|
|
|
72
|
|
|||
Other income
|
739
|
|
|
920
|
|
|
851
|
|
|||
Total Non-Interest Income
|
5,531
|
|
|
5,459
|
|
|
5,489
|
|
|||
|
|
|
|
|
|
||||||
Non-Interest Expenses
|
|
|
|
|
|
||||||
Salaries and employee benefits
|
15,941
|
|
|
14,046
|
|
|
12,844
|
|
|||
Occupancy and equipment
|
4,147
|
|
|
4,241
|
|
|
4,117
|
|
|||
Professional
|
1,603
|
|
|
1,497
|
|
|
1,198
|
|
|||
Insurance
|
242
|
|
|
216
|
|
|
216
|
|
|||
FDIC insurance and assessments
|
497
|
|
|
467
|
|
|
412
|
|
|||
Advertising
|
360
|
|
|
450
|
|
|
415
|
|
|||
Data processing
|
738
|
|
|
553
|
|
|
554
|
|
|||
Outside service fees
|
325
|
|
|
473
|
|
|
500
|
|
|||
Amortization of identifiable intangibles
|
—
|
|
|
—
|
|
|
9
|
|
|||
OREO expenses, impairments and sales, net
|
5
|
|
|
48
|
|
|
(274
|
)
|
|||
Loan workout expenses
|
144
|
|
|
233
|
|
|
73
|
|
|||
Other operating
|
1,684
|
|
|
1,718
|
|
|
1,411
|
|
|||
Total Non-Interest Expenses
|
25,686
|
|
|
23,942
|
|
|
21,475
|
|
|||
|
|
|
|
|
|
||||||
Income before Income Taxes
|
15,196
|
|
|
12,520
|
|
|
12,959
|
|
|||
Income tax expense
|
3,990
|
|
|
6,018
|
|
|
4,328
|
|
|||
Net Income
|
$
|
11,206
|
|
|
$
|
6,502
|
|
|
$
|
8,631
|
|
Earnings Per Common Share:
|
|
|
|
|
|
||||||
Basic
|
$
|
1.32
|
|
|
$
|
0.78
|
|
|
$
|
1.04
|
|
Diluted
|
$
|
1.29
|
|
|
$
|
0.75
|
|
|
$
|
1.01
|
|
See notes to consolidated financial statements.
|
Consolidated Statements of Comprehensive Income
|
|
|
|
|
|
||||||
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In Thousands)
|
||||||||||
|
|
|
|
|
|
||||||
Net income
|
$
|
11,206
|
|
|
$
|
6,502
|
|
|
$
|
8,631
|
|
Other comprehensive (loss) income:
|
|
|
|
|
|
||||||
Unrealized holdings (losses) gains on securities available for sale, net of income tax (benefit) expense 2018: $(46), 2017: $56; 2016: $5
|
(121
|
)
|
|
87
|
|
|
8
|
|
|||
|
|
|
|
|
|
||||||
Other comprehensive (loss) income
|
(121
|
)
|
|
87
|
|
|
8
|
|
|||
|
|
|
|
|
|
||||||
Total comprehensive income
|
$
|
11,085
|
|
|
$
|
6,589
|
|
|
$
|
8,639
|
|
See notes to consolidated financial statements.
|
Consolidated Statements of Shareholders' Equity
|
||||||||||||||||||||||||||
(Dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
Common Stock
|
|
|
|
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
Shareholders’
Equity
|
||||||||||||||||
|
Preferred
Stock
|
|
Outstanding
Shares
|
|
Amount
|
|
Retained
Earnings
|
|
Treasury Stock
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance, January 1, 2016
|
$
|
—
|
|
|
7,929,196
|
|
|
$
|
72,890
|
|
|
$
|
22,759
|
|
|
$
|
(2,248
|
)
|
|
$
|
(399
|
)
|
|
$
|
93,002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
8,631
|
|
|
—
|
|
|
—
|
|
|
8,631
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
8
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
231
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
231
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cash dividends on common stock ($0.14 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,193
|
)
|
|
—
|
|
|
—
|
|
|
(1,193
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Common stock dividend - 5%
|
—
|
|
|
399,554
|
|
|
5,750
|
|
|
(5,750
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Options exercised
|
—
|
|
|
27,527
|
|
|
104
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
104
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Tax benefit related to stock compensation
|
—
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Common stock repurchased
|
—
|
|
|
(13,232
|
)
|
|
—
|
|
|
—
|
|
|
(148
|
)
|
|
—
|
|
|
(148
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Restricted stock and other awards
|
—
|
|
|
17,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Employee stock purchase program
|
—
|
|
|
5,397
|
|
|
56
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance, December 31, 2016
|
$
|
—
|
|
|
8,365,442
|
|
|
$
|
79,056
|
|
|
$
|
24,447
|
|
|
$
|
(2,396
|
)
|
|
$
|
(391
|
)
|
|
$
|
100,716
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
6,502
|
|
|
—
|
|
|
—
|
|
|
6,502
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
87
|
|
|
87
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
279
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
279
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cash dividends on common stock ($0.17 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,415
|
)
|
|
—
|
|
|
—
|
|
|
(1,415
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Common stock dividend - adjustment
|
—
|
|
|
(1,069
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Options exercised
|
—
|
|
|
68,403
|
|
|
276
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
276
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Tax benefit related to stock compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
59
|
|
|
—
|
|
|
—
|
|
|
59
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Restricted stock and other awards
|
—
|
|
|
33,333
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Employee stock purchase program
|
—
|
|
|
3,921
|
|
|
67
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance, December 31, 2017
|
$
|
—
|
|
|
8,470,030
|
|
|
$
|
79,678
|
|
|
$
|
29,593
|
|
|
$
|
(2,396
|
)
|
|
$
|
(304
|
)
|
|
$
|
106,571
|
|
Consolidated Statements of Shareholders' Equity (continued)
|
||||||||||||||||||||||||||
(Dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
Common Stock
|
|
|
|
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
Shareholders’
Equity
|
||||||||||||||||
|
Preferred
Stock
|
|
Outstanding
Shares
|
|
Amount
|
|
Retained
Earnings
|
|
Treasury Stock
|
|
|
|||||||||||||||
Balance, December 31, 2017
|
$
|
—
|
|
|
8,470,030
|
|
|
$
|
79,678
|
|
|
$
|
29,593
|
|
|
$
|
(2,396
|
)
|
|
$
|
(304
|
)
|
|
$
|
106,571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income
|
|
|
—
|
|
|
|
|
11,206
|
|
|
—
|
|
|
—
|
|
|
11,206
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(121
|
)
|
|
(121
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
317
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
317
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cash dividends on common stock ($0.20 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,710
|
)
|
|
—
|
|
|
—
|
|
|
(1,710
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Options exercised
|
—
|
|
|
115,824
|
|
|
423
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
423
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
AOCI reclassification related to Tax Reform
|
—
|
|
|
—
|
|
|
—
|
|
|
59
|
|
|
—
|
|
|
(59
|
)
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
AOCI reclassification due to adoption of ASU 2016-01
|
—
|
|
|
—
|
|
|
—
|
|
|
(39
|
)
|
|
—
|
|
|
39
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Common stock repurchased
|
—
|
|
|
(16,351
|
)
|
|
—
|
|
|
—
|
|
|
(251
|
)
|
|
—
|
|
|
(251
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Restricted stock and other awards
|
—
|
|
|
33,950
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Employee stock purchase program
|
—
|
|
|
3,539
|
|
|
63
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
63
|
|
||||||
Balance, December 31, 2018
|
$
|
—
|
|
|
8,606,992
|
|
|
$
|
80,481
|
|
|
$
|
39,109
|
|
|
$
|
(2,647
|
)
|
|
$
|
(445
|
)
|
|
$
|
116,498
|
|
See notes to consolidated financial statements.
|
Consolidated Statements of Cash Flows
|
|
|
|
|
|
||||||
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In Thousands)
|
||||||||||
Cash Flows from Operating Activities
|
|
|
|
|
|
||||||
Net income
|
$
|
11,206
|
|
|
$
|
6,502
|
|
|
$
|
8,631
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
691
|
|
|
765
|
|
|
780
|
|
|||
Provision for loan losses
|
775
|
|
|
1,530
|
|
|
515
|
|
|||
Intangible amortization
|
—
|
|
|
—
|
|
|
9
|
|
|||
Amortization of subordinated debt issuance costs
|
35
|
|
|
33
|
|
|
31
|
|
|||
Net amortization of securities premiums and discounts
|
776
|
|
|
828
|
|
|
714
|
|
|||
Deferred income taxes
|
(429
|
)
|
|
1,061
|
|
|
(463
|
)
|
|||
Earnings from investment in bank owned life insurance
|
(525
|
)
|
|
(544
|
)
|
|
(477
|
)
|
|||
Proceeds from sale of mortgage loans held for sale
|
55,581
|
|
|
72,190
|
|
|
62,059
|
|
|||
Origination of mortgage loans held for sale
|
(54,658
|
)
|
|
(69,480
|
)
|
|
(60,882
|
)
|
|||
Gain on sale of mortgage loans held for sale
|
(919
|
)
|
|
(1,278
|
)
|
|
(1,059
|
)
|
|||
Gain on sale of loans transferred from held for investment to held for sale
|
(200
|
)
|
|
(177
|
)
|
|
—
|
|
|||
Net realized loss (gain) on sale of OREO
|
—
|
|
|
17
|
|
|
45
|
|
|||
Impairment on OREO
|
—
|
|
|
26
|
|
|
—
|
|
|||
Stock-based compensation expense
|
317
|
|
|
279
|
|
|
231
|
|
|||
Net realized gain on sale of securities held to maturity
|
—
|
|
|
—
|
|
|
(72
|
)
|
|||
Death benefit on bank owned life insurance
|
—
|
|
|
—
|
|
|
(862
|
)
|
|||
Proceeds from sale of SBA loans held for sale
|
3,364
|
|
|
9,744
|
|
|
7,860
|
|
|||
Origination of SBA loans held for sale
|
(1,086
|
)
|
|
(8,168
|
)
|
|
(8,597
|
)
|
|||
Gain on sale of SBA loans held for sale
|
(1,197
|
)
|
|
(1,052
|
)
|
|
(868
|
)
|
|||
Unrealized loss on equity securities
|
53
|
|
|
—
|
|
|
—
|
|
|||
Decrease (increase) in assets:
|
|
|
|
|
|
||||||
Accrued interest receivable
|
(29
|
)
|
|
(320
|
)
|
|
(322
|
)
|
|||
Other assets
|
(1,111
|
)
|
|
(205
|
)
|
|
164
|
|
|||
Increase (decrease) in liabilities:
|
|
|
|
|
|
||||||
Accrued interest payable
|
49
|
|
|
(30
|
)
|
|
(18
|
)
|
|||
Other liabilities
|
1,831
|
|
|
1,034
|
|
|
1,487
|
|
|||
Net Cash Provided by Operating Activities
|
14,524
|
|
|
12,755
|
|
|
8,906
|
|
|||
Cash Flows from Investing Activities
|
|
|
|
|
|
||||||
Purchase of securities available for sale
|
(4,245
|
)
|
|
(2,500
|
)
|
|
(8,038
|
)
|
|||
Purchase of securities held to maturity
|
(5,035
|
)
|
|
(15,458
|
)
|
|
(25,213
|
)
|
|||
Proceeds from repayments, calls and maturities of securities available for sale
|
8,107
|
|
|
5,599
|
|
|
6,781
|
|
|||
Proceeds from repayments, calls and maturities of securities held to maturity
|
15,130
|
|
|
14,847
|
|
|
9,155
|
|
|||
Proceeds from sales of securities held to maturity
|
—
|
|
|
—
|
|
|
1,076
|
|
|||
Proceeds from sale of loans transferred from held for investment to held for sale
|
10,030
|
|
|
8,357
|
|
|
—
|
|
|||
Net increase in loans
|
(80,887
|
)
|
|
(106,389
|
)
|
|
(59,605
|
)
|
|||
Purchase of premises and equipment
|
(369
|
)
|
|
(2,342
|
)
|
|
(359
|
)
|
|||
Proceeds from sale of premises and equipment
|
—
|
|
|
—
|
|
|
—
|
|
|||
Purchase of restricted investments, net
|
(652
|
)
|
|
(625
|
)
|
|
(1,209
|
)
|
|||
Proceeds from the sale of OREO
|
—
|
|
|
216
|
|
|
107
|
|
|||
Purchase of bank owned life insurance
|
—
|
|
|
—
|
|
|
(3,918
|
)
|
|||
Proceeds from death benefit on bank owned life insurance
|
—
|
|
|
—
|
|
|
1,522
|
|
|||
Net Cash Used in Investing Activities
|
(57,921
|
)
|
|
(98,295
|
)
|
|
(79,701
|
)
|
|||
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Consolidated Statements of Cash Flows (continued)
|
|
|
|||||||||
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In Thousands)
|
||||||||||
Cash Flows from Financing Activities
|
|
|
|
|
|
||||||
Net increase in deposits
|
55,797
|
|
|
84,990
|
|
|
68,131
|
|
|||
Net (decrease) increase in securities sold under agreements to repurchase
|
(7,718
|
)
|
|
7,205
|
|
|
370
|
|
|||
Proceeds from FHLB and other borrowings
|
—
|
|
|
12,500
|
|
|
13,000
|
|
|||
Repayment of FHLB and other borrowings
|
(3,300
|
)
|
|
(12,000
|
)
|
|
(14,200
|
)
|
|||
Cash dividends paid - common stock
|
(1,710
|
)
|
|
(1,415
|
)
|
|
(1,193
|
)
|
|||
Proceeds from employee stock purchase plan
|
63
|
|
|
67
|
|
|
56
|
|
|||
Proceeds from exercise of stock options
|
423
|
|
|
276
|
|
|
104
|
|
|||
Common stock repurchased
|
(251
|
)
|
|
—
|
|
|
(148
|
)
|
|||
Tax benefit related to stock compensation
|
—
|
|
|
59
|
|
|
25
|
|
|||
Net Cash Provided by Financing Activities
|
43,304
|
|
|
91,682
|
|
|
66,145
|
|
|||
Net (Decrease) Increase in Cash and Cash Equivalents
|
(93
|
)
|
|
6,142
|
|
|
(4,650
|
)
|
|||
Cash and Cash Equivalents – Beginning
|
48,219
|
|
|
42,077
|
|
|
46,727
|
|
|||
Cash and Cash Equivalents – Ending
|
$
|
48,126
|
|
|
$
|
48,219
|
|
|
$
|
42,077
|
|
Supplementary cash flow information:
|
|
|
|
|
|
||||||
Interest paid
|
$
|
8,317
|
|
|
$
|
5,737
|
|
|
$
|
5,182
|
|
Income taxes paid
|
$
|
4,854
|
|
|
$
|
5,217
|
|
|
$
|
4,338
|
|
Supplementary schedule of non-cash activities:
|
|
|
|
|
|
||||||
Transfer of loans held for investment to loans held for sale
|
$
|
9,830
|
|
|
$
|
8,180
|
|
|
$
|
—
|
|
OREO acquired in settlement of loans
|
$
|
585
|
|
|
$
|
—
|
|
|
$
|
—
|
|
See notes to consolidated financial statements.
|
A.
|
Organization and Basis of Presentation
|
B.
|
Nature of Operations
|
C.
|
Use of Estimates
|
D.
|
Significant Concentrations of Credit Risk
|
E.
|
Comprehensive Income
|
F.
|
Statement of Cash Flows
|
G.
|
Securities
|
H.
|
Restricted Investments
|
I.
|
Loans Receivable and Loans Held for Sale
|
J.
|
Allowance for Loan Losses
|
K.
|
Transfers of Financial Assets
|
L.
|
Other Real Estate Owned
|
M.
|
Bank Owned Life Insurance
|
N.
|
Bank Premises and Equipment
|
O.
|
Advertising
|
P.
|
Income Taxes
|
Q.
|
Off-Balance Sheet Financial Instruments
|
R.
|
Earnings per Common Share
|
S.
|
Stock-Based Compensation
|
T.
|
Goodwill and Other Intangible Assets
|
U.
|
Segment Reporting
|
V.
|
Subsequent Events
|
W.
|
Recent Accounting Pronouncements
|
|
Twelve Months Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(Dollars in Thousands)
|
||||||||||
Non-Interest Income
|
|
|
|
|
|
||||||
In-scope of Topic 606
|
|
|
|
|
|
||||||
Service fees on deposit accounts
|
$
|
880
|
|
|
$
|
772
|
|
|
$
|
587
|
|
Other income
|
549
|
|
|
746
|
|
|
693
|
|
|||
Non-Interest Income (in-scope of Topic 606)
|
1,429
|
|
|
1,518
|
|
|
1,280
|
|
|||
Non-Interest Income (out-of-scope of Topic 606)
|
4,102
|
|
|
3,941
|
|
|
4,209
|
|
|||
Total Non-Interest Income
|
$
|
5,531
|
|
|
$
|
5,459
|
|
|
$
|
5,489
|
|
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
|
Amortized
Cost
|
|
Gross Unrealized
Gains
|
|
Gross Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
|
|
(In Thousands)
|
|
|
||||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
||||||||
U.S. Government agency securities
|
$
|
11,800
|
|
|
$
|
5
|
|
|
$
|
(170
|
)
|
|
$
|
11,635
|
|
Municipal securities
|
487
|
|
|
—
|
|
|
—
|
|
|
487
|
|
||||
U.S. Government-sponsored enterprises (“GSE”) – residential mortgage-backed securities
|
6,131
|
|
|
1
|
|
|
(185
|
)
|
|
5,947
|
|
||||
U.S. Government collateralized residential mortgage obligations
|
4,600
|
|
|
1
|
|
|
(178
|
)
|
|
4,423
|
|
||||
Corporate debt securities, primarily financial institutions
|
1,999
|
|
|
3
|
|
|
(87
|
)
|
|
1,915
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total securities available for sale
|
$
|
25,017
|
|
|
$
|
10
|
|
|
$
|
(620
|
)
|
|
$
|
24,407
|
|
|
|
|
|
|
|
|
|
||||||||
Total equity securities
|
$
|
2,559
|
|
|
$
|
—
|
|
|
$
|
(108
|
)
|
|
$
|
2,451
|
|
|
|
|
|
|
|
|
|
||||||||
Securities held to maturity:
|
|
|
|
|
|
|
|
||||||||
Municipal securities
|
$
|
36,436
|
|
|
$
|
389
|
|
|
$
|
(111
|
)
|
|
$
|
36,714
|
|
GSE – residential mortgage-backed securities
|
7,423
|
|
|
—
|
|
|
(211
|
)
|
|
7,212
|
|
||||
U.S. Government collateralized residential mortgage obligations
|
1,769
|
|
|
—
|
|
|
(57
|
)
|
|
1,712
|
|
||||
Corporate debt securities, primarily financial institutions
|
1,827
|
|
|
—
|
|
|
(199
|
)
|
|
1,628
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total securities held to maturity
|
$
|
47,455
|
|
|
$
|
389
|
|
|
$
|
(578
|
)
|
|
$
|
47,266
|
|
December 31, 2017
|
|
|
|
|
|
|
|
||||||||
|
Amortized
Cost
|
|
Gross Unrealized
Gains
|
|
Gross Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
|
|
(In Thousands)
|
|
|
||||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
||||||||
U.S. Government agency securities
|
$
|
10,105
|
|
|
$
|
—
|
|
|
$
|
(48
|
)
|
|
$
|
10,057
|
|
Municipal securities
|
494
|
|
|
1
|
|
|
—
|
|
|
495
|
|
||||
GSE – residential mortgage-backed securities
|
8,362
|
|
|
—
|
|
|
(143
|
)
|
|
8,219
|
|
||||
U.S. Government collateralized residential mortgage obligations
|
7,672
|
|
|
1
|
|
|
(191
|
)
|
|
7,482
|
|
||||
Corporate debt securities, primarily financial institutions
|
2,494
|
|
|
9
|
|
|
(72
|
)
|
|
2,431
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total securities available for sale
|
$
|
29,127
|
|
|
$
|
11
|
|
|
$
|
(454
|
)
|
|
$
|
28,684
|
|
|
|
|
|
|
|
|
|
||||||||
Total equity securities
|
$
|
2,503
|
|
|
$
|
—
|
|
|
$
|
(55
|
)
|
|
$
|
2,448
|
|
|
|
|
|
|
|
|
|
||||||||
Securities held to maturity:
|
|
|
|
|
|
|
|
||||||||
Municipal securities
|
$
|
46,614
|
|
|
$
|
812
|
|
|
$
|
(20
|
)
|
|
$
|
47,406
|
|
GSE – residential mortgage-backed securities
|
7,339
|
|
|
—
|
|
|
(98
|
)
|
|
7,241
|
|
||||
U.S. Government collateralized residential mortgage obligations
|
2,224
|
|
|
—
|
|
|
(46
|
)
|
|
2,178
|
|
||||
Corporate debt securities, primarily financial institutions
|
1,825
|
|
|
—
|
|
|
(101
|
)
|
|
1,724
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total securities held to maturity
|
$
|
58,002
|
|
|
$
|
812
|
|
|
$
|
(265
|
)
|
|
$
|
58,549
|
|
|
Available for Sale
|
|
Held to Maturity
|
||||||||||||
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
||||||||
|
(In Thousands)
|
||||||||||||||
Due in one year or less
|
$
|
1,254
|
|
|
$
|
1,245
|
|
|
$
|
5,415
|
|
|
$
|
5,423
|
|
Due in one year through five years
|
7,548
|
|
|
7,505
|
|
|
1,290
|
|
|
1,314
|
|
||||
Due in five years through ten years
|
1,354
|
|
|
1,321
|
|
|
8,071
|
|
|
7,993
|
|
||||
Due after ten years
|
4,130
|
|
|
3,966
|
|
|
23,487
|
|
|
23,612
|
|
||||
Sub-total
|
14,286
|
|
|
14,037
|
|
|
38,263
|
|
|
38,342
|
|
||||
|
|
|
|
|
|
|
|
||||||||
GSE – residential mortgage-backed securities
|
6,131
|
|
|
5,947
|
|
|
7,423
|
|
|
7,212
|
|
||||
U.S. Government collateralized residential mortgage obligations
|
4,600
|
|
|
4,423
|
|
|
1,769
|
|
|
1,712
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total
|
$
|
25,017
|
|
|
$
|
24,407
|
|
|
$
|
47,455
|
|
|
$
|
47,266
|
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
December 31, 2018
|
(In Thousands)
|
||||||||||||||||||||||
U.S. Government agency securities
|
$
|
4,842
|
|
|
$
|
(72
|
)
|
|
$
|
5,470
|
|
|
$
|
(98
|
)
|
|
$
|
10,312
|
|
|
$
|
(170
|
)
|
Municipal securities
|
5,227
|
|
|
(24
|
)
|
|
8,378
|
|
|
(87
|
)
|
|
13,605
|
|
|
(111
|
)
|
||||||
GSE – residential mortgage-backed securities
|
1,330
|
|
|
(10
|
)
|
|
11,675
|
|
|
(386
|
)
|
|
13,005
|
|
|
(396
|
)
|
||||||
U.S. Government collateralized residential mortgage obligations
|
146
|
|
|
—
|
|
|
5,938
|
|
|
(235
|
)
|
|
6,084
|
|
|
(235
|
)
|
||||||
Corporate debt securities, primarily financial institutions
|
493
|
|
|
(8
|
)
|
|
2,548
|
|
|
(278
|
)
|
|
3,041
|
|
|
(286
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total temporarily impaired securities
|
$
|
12,038
|
|
|
$
|
(114
|
)
|
|
$
|
34,009
|
|
|
$
|
(1,084
|
)
|
|
$
|
46,047
|
|
|
$
|
(1,198
|
)
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
December 31, 2017
|
(In Thousands)
|
||||||||||||||||||||||
U.S. Government agency securities
|
$
|
8,229
|
|
|
$
|
(46
|
)
|
|
$
|
1,766
|
|
|
$
|
(2
|
)
|
|
$
|
9,995
|
|
|
$
|
(48
|
)
|
Municipal securities
|
14,170
|
|
|
(20
|
)
|
|
—
|
|
|
—
|
|
|
14,170
|
|
|
(20
|
)
|
||||||
GSE – residential mortgage-backed securities
|
6,302
|
|
|
(66
|
)
|
|
9,123
|
|
|
(175
|
)
|
|
15,425
|
|
|
(241
|
)
|
||||||
U.S. Government collateralized residential mortgage obligations
|
1,806
|
|
|
(20
|
)
|
|
7,500
|
|
|
(217
|
)
|
|
9,306
|
|
|
(237
|
)
|
||||||
Corporate debt securities, primarily financial institutions
|
—
|
|
|
—
|
|
|
2,648
|
|
|
(173
|
)
|
|
2,648
|
|
|
(173
|
)
|
||||||
Equity securities
|
—
|
|
|
—
|
|
|
2,449
|
|
|
(55
|
)
|
|
2,449
|
|
|
(55
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total temporarily impaired securities
|
$
|
30,507
|
|
|
$
|
(152
|
)
|
|
$
|
23,486
|
|
|
$
|
(622
|
)
|
|
$
|
53,993
|
|
|
$
|
(774
|
)
|
|
2018
|
|
2017
|
||||
|
(In Thousands)
|
||||||
Commercial and industrial
|
$
|
109,362
|
|
|
$
|
101,371
|
|
Real estate – construction
|
144,865
|
|
|
118,094
|
|
||
Real estate – commercial
|
552,549
|
|
|
537,733
|
|
||
Real estate – residential
|
84,123
|
|
|
64,238
|
|
||
Consumer
|
31,144
|
|
|
30,203
|
|
||
|
|
|
|
||||
|
922,043
|
|
|
851,639
|
|
||
Allowance for loan losses
|
(11,398
|
)
|
|
(10,668
|
)
|
||
Net unearned fees
|
(742
|
)
|
|
(765
|
)
|
||
|
|
|
|
||||
Net Loans
|
$
|
909,903
|
|
|
$
|
840,206
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(In Thousands)
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
Greater than
90 Days
|
|
Total Past
Due
|
|
Current
|
|
Total Loans
Receivable
|
|
Loans Receivable>90 Days and
Accruing
|
||||||||||||||
Commercial and industrial
|
$
|
100
|
|
|
$
|
—
|
|
|
$
|
765
|
|
|
$
|
865
|
|
|
$
|
108,497
|
|
|
$
|
109,362
|
|
|
$
|
—
|
|
Real estate – construction
|
3,575
|
|
|
—
|
|
|
150
|
|
|
3,725
|
|
|
141,140
|
|
|
144,865
|
|
|
—
|
|
|||||||
Real estate – commercial
|
563
|
|
|
—
|
|
|
54
|
|
|
617
|
|
|
551,932
|
|
|
552,549
|
|
|
—
|
|
|||||||
Real estate – residential
|
—
|
|
|
564
|
|
|
227
|
|
|
791
|
|
|
83,332
|
|
|
84,123
|
|
|
—
|
|
|||||||
Consumer
|
—
|
|
|
—
|
|
|
194
|
|
|
194
|
|
|
30,950
|
|
|
31,144
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total
|
$
|
4,238
|
|
|
$
|
564
|
|
|
$
|
1,390
|
|
|
$
|
6,192
|
|
|
$
|
915,851
|
|
|
$
|
922,043
|
|
|
$
|
—
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(In Thousands)
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
Greater than
90 Days
|
|
Total Past
Due
|
|
Current
|
|
Total Loans
Receivable
|
|
Loans Receivable>90 Days and
Accruing
|
||||||||||||||
Commercial and industrial
|
$
|
224
|
|
|
$
|
—
|
|
|
$
|
790
|
|
|
$
|
1,014
|
|
|
$
|
100,357
|
|
|
$
|
101,371
|
|
|
$
|
—
|
|
Real estate – construction
|
—
|
|
|
—
|
|
|
150
|
|
|
150
|
|
|
117,944
|
|
|
118,094
|
|
|
—
|
|
|||||||
Real estate – commercial
|
146
|
|
|
150
|
|
|
219
|
|
|
515
|
|
|
537,218
|
|
|
537,733
|
|
|
—
|
|
|||||||
Real estate – residential
|
290
|
|
|
—
|
|
|
717
|
|
|
1,007
|
|
|
63,231
|
|
|
64,238
|
|
|
—
|
|
|||||||
Consumer
|
92
|
|
|
—
|
|
|
194
|
|
|
286
|
|
|
29,917
|
|
|
30,203
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total
|
$
|
752
|
|
|
$
|
150
|
|
|
$
|
2,070
|
|
|
$
|
2,972
|
|
|
$
|
848,667
|
|
|
$
|
851,639
|
|
|
$
|
—
|
|
|
2018
|
|
2017
|
||||
|
(In Thousands)
|
||||||
Commercial and industrial
|
$
|
765
|
|
|
$
|
790
|
|
Real estate – construction
|
150
|
|
|
150
|
|
||
Real estate – commercial
|
54
|
|
|
219
|
|
||
Real estate – residential
|
227
|
|
|
717
|
|
||
Consumer
|
194
|
|
|
194
|
|
||
|
|
|
|
||||
Total
|
$
|
1,390
|
|
|
$
|
2,070
|
|
December 31, 2018
|
|
Recorded
Investment,
Net of
Charge-offs
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||||
(In Thousands)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
$
|
4,200
|
|
|
$
|
4,200
|
|
|
$
|
—
|
|
|
$
|
3,201
|
|
|
$
|
131
|
|
Real estate – construction
|
|
3,082
|
|
|
3,082
|
|
|
—
|
|
|
3,116
|
|
|
134
|
|
|||||
Real estate – commercial
|
|
168
|
|
|
168
|
|
|
—
|
|
|
174
|
|
|
6
|
|
|||||
Real estate – residential
|
|
589
|
|
|
589
|
|
|
—
|
|
|
593
|
|
|
18
|
|
|||||
Consumer
|
|
194
|
|
|
194
|
|
|
—
|
|
|
194
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Real estate – construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Real estate – commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Real estate – residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
$
|
4,200
|
|
|
$
|
4,200
|
|
|
$
|
—
|
|
|
$
|
3,201
|
|
|
$
|
131
|
|
Real estate – construction
|
|
3,082
|
|
|
3,082
|
|
|
—
|
|
|
3,116
|
|
|
134
|
|
|||||
Real estate – commercial
|
|
168
|
|
|
168
|
|
|
—
|
|
|
174
|
|
|
6
|
|
|||||
Real estate – residential
|
|
589
|
|
|
589
|
|
|
—
|
|
|
593
|
|
|
18
|
|
|||||
Consumer
|
|
194
|
|
|
194
|
|
|
—
|
|
|
194
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total
|
|
$
|
8,233
|
|
|
$
|
8,233
|
|
|
$
|
—
|
|
|
$
|
7,278
|
|
|
$
|
289
|
|
December 31, 2017
|
|
Recorded
Investment,
Net of
Charge-offs
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||||
(In Thousands)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
$
|
3,350
|
|
|
$
|
3,697
|
|
|
$
|
—
|
|
|
$
|
3,758
|
|
|
$
|
152
|
|
Real estate – construction
|
|
3,148
|
|
|
3,148
|
|
|
—
|
|
|
3,163
|
|
|
133
|
|
|||||
Real estate – commercial
|
|
344
|
|
|
344
|
|
|
—
|
|
|
411
|
|
|
6
|
|
|||||
Real estate – residential
|
|
1,086
|
|
|
1,086
|
|
|
—
|
|
|
1,105
|
|
|
18
|
|
|||||
Consumer
|
|
194
|
|
|
194
|
|
|
—
|
|
|
194
|
|
|
1
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Real estate – construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Real estate – commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Real estate – residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
$
|
3,350
|
|
|
$
|
3,697
|
|
|
$
|
—
|
|
|
$
|
3,758
|
|
|
$
|
152
|
|
Real estate – construction
|
|
3,148
|
|
|
3,148
|
|
|
—
|
|
|
3,163
|
|
|
133
|
|
|||||
Real estate – commercial
|
|
344
|
|
|
344
|
|
|
—
|
|
|
411
|
|
|
6
|
|
|||||
Real estate – residential
|
|
1,086
|
|
|
1,086
|
|
|
—
|
|
|
1,105
|
|
|
18
|
|
|||||
Consumer
|
|
194
|
|
|
194
|
|
|
—
|
|
|
194
|
|
|
1
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total
|
|
$
|
8,122
|
|
|
$
|
8,469
|
|
|
$
|
—
|
|
|
$
|
8,631
|
|
|
$
|
310
|
|
December 31, 2016
|
Recorded
Investment, Net of Charge-offs |
|
Unpaid
Principal Balance |
|
Related
Allowance |
|
Average
Recorded Investment |
|
Interest
Income Recognized |
||||||||||
(In Thousands)
|
|
|
|
|
|
|
|
|
|
||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
3,402
|
|
|
$
|
3,415
|
|
|
$
|
—
|
|
|
$
|
3,575
|
|
|
$
|
174
|
|
Real estate – construction
|
3,036
|
|
|
3,036
|
|
|
—
|
|
|
3,073
|
|
|
129
|
|
|||||
Real estate – commercial
|
1,548
|
|
|
1,577
|
|
|
—
|
|
|
1,618
|
|
|
47
|
|
|||||
Real estate – residential
|
1,139
|
|
|
1,189
|
|
|
—
|
|
|
1,164
|
|
|
18
|
|
|||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
498
|
|
|
$
|
498
|
|
|
$
|
2
|
|
|
$
|
507
|
|
|
$
|
15
|
|
Real estate – construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Real estate – commercial
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Real estate – residential
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
3,900
|
|
|
$
|
3,913
|
|
|
$
|
2
|
|
|
$
|
4,082
|
|
|
$
|
189
|
|
Real estate – construction
|
3,036
|
|
|
3,036
|
|
|
|
|
3,073
|
|
|
129
|
|
||||||
Real estate – commercial
|
1,548
|
|
|
1,577
|
|
|
|
|
1,618
|
|
|
47
|
|
||||||
Real estate – residential
|
1,139
|
|
|
1,189
|
|
|
|
|
1,164
|
|
|
18
|
|
||||||
Consumer
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total
|
$
|
9,623
|
|
|
$
|
9,715
|
|
|
$
|
2
|
|
|
$
|
9,937
|
|
|
$
|
383
|
|
|
|
Pass
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
|
|
(In Thousands)
|
||||||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
$
|
104,557
|
|
|
$
|
126
|
|
|
$
|
4,679
|
|
|
$
|
—
|
|
|
$
|
109,362
|
|
Real estate – construction
|
|
138,858
|
|
|
1,577
|
|
|
4,430
|
|
|
—
|
|
|
144,865
|
|
|||||
Real estate – commercial
|
|
549,083
|
|
|
2,722
|
|
|
744
|
|
|
—
|
|
|
552,549
|
|
|||||
Real estate – residential
|
|
83,896
|
|
|
—
|
|
|
227
|
|
|
—
|
|
|
84,123
|
|
|||||
Consumer
|
|
30,782
|
|
|
—
|
|
|
362
|
|
|
—
|
|
|
31,144
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total
|
|
$
|
907,176
|
|
|
$
|
4,425
|
|
|
$
|
10,442
|
|
|
$
|
—
|
|
|
$
|
922,043
|
|
|
|
Pass
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
|
|
(In Thousands)
|
||||||||||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
$
|
97,160
|
|
|
$
|
796
|
|
|
$
|
3,299
|
|
|
$
|
116
|
|
|
$
|
101,371
|
|
Real estate – construction
|
|
112,353
|
|
|
4,252
|
|
|
1,489
|
|
|
—
|
|
|
118,094
|
|
|||||
Real estate – commercial
|
|
525,951
|
|
|
5,681
|
|
|
6,101
|
|
|
—
|
|
|
537,733
|
|
|||||
Real estate – residential
|
|
63,521
|
|
|
—
|
|
|
717
|
|
|
—
|
|
|
64,238
|
|
|||||
Consumer
|
|
29,795
|
|
|
34
|
|
|
374
|
|
|
—
|
|
|
30,203
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total
|
|
$
|
828,780
|
|
|
$
|
10,763
|
|
|
$
|
11,980
|
|
|
$
|
116
|
|
|
$
|
851,639
|
|
Allowance for Loan Losses
|
|
Commercial
and
Industrial
|
|
Real Estate -
Construction
|
|
Real Estate -
Commercial
|
|
Real Estate –
Residential
|
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||||||
|
|
|
|
|
|
(In Thousands)
|
|
|
|
|
|
|
||||||||||||||||
Beginning balance, January 1, 2018
|
|
$
|
930
|
|
|
$
|
1,389
|
|
|
$
|
7,325
|
|
|
$
|
502
|
|
|
$
|
174
|
|
|
$
|
348
|
|
|
$
|
10,668
|
|
Charge-offs
|
|
(116
|
)
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(128
|
)
|
|||||||
Recoveries
|
|
33
|
|
|
3
|
|
|
26
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
83
|
|
|||||||
Provision
|
|
(102
|
)
|
|
657
|
|
|
(56
|
)
|
|
166
|
|
|
(48
|
)
|
|
158
|
|
|
775
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Ending balance, December 31, 2018
|
|
$
|
745
|
|
|
$
|
2,049
|
|
|
$
|
7,283
|
|
|
$
|
668
|
|
|
$
|
147
|
|
|
$
|
506
|
|
|
$
|
11,398
|
|
Allowance for Loan Losses
|
|
Commercial
and
Industrial
|
|
Real Estate -
Construction
|
|
Real Estate -
Commercial
|
|
Real Estate -
Residential
|
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||||||
|
|
|
|
|
|
(In Thousands)
|
|
|
|
|
|
|
||||||||||||||||
Beginning balance, January 1, 2017
|
|
$
|
844
|
|
|
$
|
1,276
|
|
|
$
|
6,315
|
|
|
$
|
463
|
|
|
$
|
244
|
|
|
$
|
423
|
|
|
$
|
9,565
|
|
Charge-offs
|
|
(381
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(106
|
)
|
|
—
|
|
|
(487
|
)
|
|||||||
Recoveries
|
|
18
|
|
|
12
|
|
|
24
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
60
|
|
|||||||
Provision
|
|
449
|
|
|
101
|
|
|
986
|
|
|
39
|
|
|
30
|
|
|
(75
|
)
|
|
1,530
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Ending balance, December 31, 2017
|
|
$
|
930
|
|
|
$
|
1,389
|
|
|
$
|
7,325
|
|
|
$
|
502
|
|
|
$
|
174
|
|
|
$
|
348
|
|
|
$
|
10,668
|
|
Allowance for Loan Losses
|
Commercial
and Industrial |
|
Real Estate -
Construction |
|
Real Estate -
Commercial |
|
Real Estate -
Residential |
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||||||
|
|
|
|
|
(In Thousands)
|
|
|
|
|
|
|
||||||||||||||||
Beginning balance, January 1, 2016
|
$
|
990
|
|
|
$
|
1,283
|
|
|
$
|
5,599
|
|
|
$
|
304
|
|
|
$
|
242
|
|
|
$
|
295
|
|
|
$
|
8,713
|
|
Charge-offs
|
—
|
|
|
—
|
|
|
(444
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(449
|
)
|
|||||||
Recoveries
|
12
|
|
|
12
|
|
|
696
|
|
|
—
|
|
|
66
|
|
|
—
|
|
|
786
|
|
|||||||
Provision
|
(158
|
)
|
|
(19
|
)
|
|
464
|
|
|
159
|
|
|
(59
|
)
|
|
128
|
|
|
515
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Ending balance, December 31, 2016
|
$
|
844
|
|
|
$
|
1,276
|
|
|
$
|
6,315
|
|
|
$
|
463
|
|
|
$
|
244
|
|
|
$
|
423
|
|
|
$
|
9,565
|
|
|
Allowance for Loan Losses
|
|
Loans Receivable
|
||||||||||||||||||||
December 31, 2018
|
Balance
|
|
Balance
Related to
Loans
Individually
Evaluated
for
Impairment
|
|
Balance
Related to
Loans
Collectively
Evaluated
for
Impairment
|
|
Balance
|
|
Balance
Individually
Evaluated for
Impairment
|
|
Balance
Collectively
Evaluated for
Impairment
|
||||||||||||
|
|
|
|
|
(In Thousands)
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
745
|
|
|
$
|
—
|
|
|
$
|
745
|
|
|
$
|
109,362
|
|
|
$
|
4,200
|
|
|
$
|
105,162
|
|
Real estate – construction
|
2,049
|
|
|
—
|
|
|
2,049
|
|
|
144,865
|
|
|
3,082
|
|
|
141,783
|
|
||||||
Real estate – commercial
|
7,283
|
|
|
—
|
|
|
7,283
|
|
|
552,549
|
|
|
168
|
|
|
552,381
|
|
||||||
Real estate – residential
|
668
|
|
|
—
|
|
|
668
|
|
|
84,123
|
|
|
589
|
|
|
83,534
|
|
||||||
Consumer
|
147
|
|
|
—
|
|
|
147
|
|
|
31,144
|
|
|
194
|
|
|
30,950
|
|
||||||
Unallocated
|
506
|
|
|
—
|
|
|
506
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total
|
$
|
11,398
|
|
|
$
|
—
|
|
|
$
|
11,398
|
|
|
$
|
922,043
|
|
|
$
|
8,233
|
|
|
$
|
913,810
|
|
|
Allowance for Loan Losses
|
|
Loans Receivable
|
||||||||||||||||||||
December 31, 2017
|
Balance
|
|
Balance
Related to
Loans
Individually
Evaluated
for
Impairment
|
|
Balance
Related to
Loans
Collectively
Evaluated
for
Impairment
|
|
Balance
|
|
Balance
Individually
Evaluated for
Impairment
|
|
Balance
Collectively
Evaluated for
Impairment
|
||||||||||||
|
|
|
|
|
(In Thousands)
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
930
|
|
|
$
|
—
|
|
|
$
|
930
|
|
|
$
|
101,371
|
|
|
$
|
3,350
|
|
|
$
|
98,021
|
|
Real estate – construction
|
1,389
|
|
|
—
|
|
|
1,389
|
|
|
118,094
|
|
|
3,148
|
|
|
114,946
|
|
||||||
Real estate – commercial
|
7,325
|
|
|
—
|
|
|
7,325
|
|
|
537,733
|
|
|
344
|
|
|
537,389
|
|
||||||
Real estate – residential
|
502
|
|
|
—
|
|
|
502
|
|
|
64,238
|
|
|
1,086
|
|
|
63,152
|
|
||||||
Consumer
|
174
|
|
|
—
|
|
|
174
|
|
|
30,203
|
|
|
194
|
|
|
30,009
|
|
||||||
Unallocated
|
348
|
|
|
—
|
|
|
348
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total
|
$
|
10,668
|
|
|
$
|
—
|
|
|
$
|
10,668
|
|
|
$
|
851,639
|
|
|
$
|
8,122
|
|
|
$
|
843,517
|
|
|
Year Ended December 31, 2018
|
||||||||
|
Number of
Contracts
|
|
Pre-Modification
Outstanding
Recorded
Investment
|
|
Post-Modification
Outstanding
Recorded
Investment
|
||||
|
(Dollars in Thousands)
|
||||||||
Troubled Debt Restructuring:
|
|
|
|
|
|
||||
Commercial and industrial
|
2
|
|
$
|
2,738
|
|
|
$
|
2,738
|
|
|
Year Ended December 31, 2017
|
|||||||||
|
Number of
Contracts |
|
Pre-Modification
Outstanding Recorded Investment |
|
Post-Modification
Outstanding Recorded Investment |
|||||
|
(Dollars in Thousands)
|
|||||||||
Troubled Debt Restructuring:
|
|
|
|
|
|
|||||
Commercial and Industrial
|
3
|
|
|
$
|
320
|
|
|
$
|
320
|
|
Real Estate - Construction
|
1
|
|
|
150
|
|
|
150
|
|
||
|
4
|
|
|
$
|
470
|
|
|
$
|
470
|
|
|
Estimated
Useful Lives (years)
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
(In Thousands)
|
||||||
Land
|
Indefinite
|
|
$
|
1,487
|
|
|
$
|
1,487
|
|
||||
Buildings
|
|
|
30
|
|
|
|
2,114
|
|
|
2,120
|
|
||
Leasehold improvements
|
5
|
|
—
|
|
15
|
|
3,342
|
|
|
3,432
|
|
||
Furniture and equipment
|
2
|
|
—
|
|
7
|
|
9,033
|
|
|
8,915
|
|
||
Construction in progress
|
|
|
|
|
|
|
1,267
|
|
|
1,136
|
|
||
|
|
|
|
|
|
|
|
|
|
||||
Total premises and equipment
|
|
|
|
|
|
|
17,243
|
|
|
17,090
|
|
||
|
|
|
|
|
|
|
|
|
|
||||
Less accumulated depreciation and amortization
|
|
|
|
|
|
|
(11,326
|
)
|
|
(10,851
|
)
|
||
|
|
|
|
|
|
|
|
|
|
||||
Total premises and equipment, net
|
|
|
|
|
|
|
$
|
5,917
|
|
|
$
|
6,239
|
|
|
2018
|
|
2017
|
||||
|
(In Thousands)
|
||||||
Demand, non-interest bearing
|
$
|
176,655
|
|
|
$
|
167,297
|
|
Demand, interest-bearing, money market and savings
|
495,949
|
|
|
534,939
|
|
||
Time, $250,000 and over
|
38,512
|
|
|
14,853
|
|
||
Time, other
|
206,238
|
|
|
144,468
|
|
||
Total deposits
|
$
|
917,354
|
|
|
$
|
861,557
|
|
2019
|
$
|
107,854
|
|
2020
|
76,664
|
|
|
2021
|
21,678
|
|
|
2022
|
23,453
|
|
|
2023
|
15,101
|
|
|
|
|
||
Total time deposits
|
$
|
244,750
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
(Dollars In Thousands)
|
||||||||||
Repurchase agreements:
|
|
|
|
|
|
||||||
Balance at year-end
|
$
|
19,402
|
|
|
$
|
27,120
|
|
|
$
|
19,915
|
|
Average during the year
|
$
|
19,738
|
|
|
$
|
22,066
|
|
|
$
|
19,309
|
|
Maximum month-end balance
|
$
|
23,884
|
|
|
$
|
27,120
|
|
|
$
|
22,105
|
|
Weighted average rate during the year
|
0.29
|
%
|
|
0.30
|
%
|
|
0.32
|
%
|
|||
Weighted average rate at December 31
|
0.24
|
%
|
|
0.25
|
%
|
|
0.24
|
%
|
|
Maturity of Repurchase Agreements
|
||||||||||||||||||
(dollars in thousands)
|
Overnight
and
Continuous
|
|
Up to
30 days
|
|
30 to 90
days
|
|
Over 90
days
|
|
Total
|
||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Class of Collateral Pledged:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government agency securities
|
$
|
11,566
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,566
|
|
GSE – Residential mortgage-backed securities
|
4,289
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,289
|
|
|||||
U.S. Government collateralized residential mortgage obligations
|
10,334
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,334
|
|
|||||
Total
|
$
|
26,189
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
26,189
|
|
Gross amount of recognized liabilities for repurchase agreements and securities lending
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
19,402
|
|
||||
Excess of collateral pledged over recognized liability
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,787
|
|
|
Maturity of Repurchase Agreements
|
||||||||||||||||||
(dollars in thousands)
|
Overnight
and Continuous |
|
Up to
30 days |
|
30 to 90
days |
|
Over 90
days |
|
Total
|
||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Class of Collateral Pledged:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government agency securities
|
$
|
9,995
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,995
|
|
GSE – Residential mortgage-backed securities
|
5,558
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,558
|
|
|||||
U.S. Government collateralized residential mortgage obligations
|
13,440
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,440
|
|
|||||
Total
|
$
|
28,993
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28,993
|
|
Gross amount of recognized liabilities for repurchase agreements and securities lending
|
|
|
|
|
|
|
|
|
$
|
27,120
|
|
||||||||
Excess of collateral pledged over recognized liability
|
|
|
|
|
|
|
|
|
$
|
1,873
|
|
|
2018
|
|
2017
|
|
Rate
|
|
Original Term
(years)
|
|
Maturity
|
|||||
Fixed Rate Note
|
—
|
|
|
2,000
|
|
|
1.65
|
%
|
|
5
|
|
October 2018
|
||
Fixed Rate Note
|
—
|
|
|
1,300
|
|
|
1.31
|
%
|
|
3
|
|
January 2018
|
||
Fixed Rate Note
|
1,800
|
|
|
1,800
|
|
|
1.59
|
%
|
|
4
|
|
January 2019
|
||
Fixed Rate Note
|
2,700
|
|
|
2,700
|
|
|
1.81
|
%
|
|
5
|
|
January 2020
|
||
Fixed Rate Note
|
2,500
|
|
|
2,500
|
|
|
2.03
|
%
|
|
6
|
|
January 2021
|
||
Fixed Rate Note
|
1,000
|
|
|
1,000
|
|
|
1.09
|
%
|
|
3
|
|
July 2019
|
||
Fixed Rate Note
|
1,000
|
|
|
1,000
|
|
|
1.42
|
%
|
|
5
|
|
July 2021
|
||
Fixed Rate Note
|
1,000
|
|
|
1,000
|
|
|
1.70
|
%
|
|
7
|
|
July 2023
|
||
Fixed Rate Note
|
7,500
|
|
|
7,500
|
|
|
2.07
|
%
|
|
5
|
|
August 2022
|
||
Fixed Rate Note
|
5,000
|
|
|
5,000
|
|
|
2.16
|
%
|
|
4
|
|
October 2021
|
||
Total FHLB borrowings
|
$
|
22,500
|
|
|
$
|
25,800
|
|
|
|
|
|
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In Thousands)
|
||||||||||
Current
|
$
|
4,419
|
|
|
$
|
4,957
|
|
|
$
|
4,791
|
|
Deferred
|
(429
|
)
|
|
1,061
|
|
|
(463
|
)
|
|||
|
|
|
|
|
|
||||||
Income tax expense
|
$
|
3,990
|
|
|
$
|
6,018
|
|
|
$
|
4,328
|
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|||||||||
|
(Dollars In Thousands)
|
|||||||||||||||||||
Federal income tax expense at statutory rate
|
$
|
3,191
|
|
|
21.0
|
%
|
|
$
|
4,257
|
|
|
34.0
|
%
|
|
$
|
4,406
|
|
|
34.0
|
%
|
Increases (decreases) resulting from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Tax exempt interest
|
(233
|
)
|
|
(1.5
|
)
|
|
(358
|
)
|
|
(2.9
|
)
|
|
(334
|
)
|
|
(2.6
|
)
|
|||
Bank owned life insurance income
|
(110
|
)
|
|
(0.7
|
)
|
|
(185
|
)
|
|
(1.5
|
)
|
|
(455
|
)
|
|
(3.5
|
)
|
|||
State income taxes, net of federal income tax benefit
|
1,366
|
|
|
9.0
|
|
|
734
|
|
|
5.9
|
|
|
712
|
|
|
5.5
|
|
|||
Reduction in Federal tax rate
|
—
|
|
|
—
|
|
|
1,778
|
|
|
14.3
|
|
|
—
|
|
|
—
|
|
|||
Stock-based compensation
|
(216
|
)
|
|
(1.4
|
)
|
|
(191
|
)
|
|
(1.5
|
)
|
|
—
|
|
|
—
|
|
|||
Other, net
|
(8
|
)
|
|
(0.1
|
)
|
|
(17
|
)
|
|
(0.2
|
)
|
|
(1
|
)
|
|
—
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Income tax expense
|
$
|
3,990
|
|
|
26.3
|
%
|
|
$
|
6,018
|
|
|
48.1
|
%
|
|
$
|
4,328
|
|
|
33.4
|
%
|
|
2018
|
|
2017
|
||||
|
(In Thousands)
|
||||||
Deferred tax assets:
|
|
|
|
||||
Allowance for loan losses
|
$
|
3,219
|
|
|
$
|
3,012
|
|
Depreciation and amortization
|
288
|
|
|
415
|
|
||
Deferred compensation
|
1,299
|
|
|
1,063
|
|
||
Unrealized loss on securities available for sale
|
165
|
|
|
194
|
|
||
Other
|
2
|
|
|
35
|
|
||
|
|
|
|
||||
Total deferred tax assets
|
4,973
|
|
|
4,719
|
|
||
|
|
|
|
||||
Deferred tax liabilities:
|
|
|
|
||||
Deferred loan origination costs
|
(384
|
)
|
|
(366
|
)
|
||
|
|
|
|
||||
Total deferred tax liabilities
|
(384
|
)
|
|
(366
|
)
|
||
|
|
|
|
||||
Net Deferred Tax Asset
|
$
|
4,589
|
|
|
$
|
4,353
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In Thousands, Except Per Share Data)
|
||||||||||
|
|
|
|
|
|
||||||
Net income
|
$
|
11,206
|
|
|
$
|
6,502
|
|
|
$
|
8,631
|
|
Preferred stock dividend
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Income applicable to common shareholders
|
$
|
11,206
|
|
|
$
|
6,502
|
|
|
$
|
8,631
|
|
|
|
|
|
|
|
||||||
Weighted average common shares outstanding
|
8,508
|
|
|
8,388
|
|
|
8,321
|
|
|||
Effect of dilutive securities, stock options and restricted stock
|
194
|
|
|
270
|
|
|
209
|
|
|||
|
|
|
|
|
|
||||||
Weighted average common shares outstanding used to calculate diluted earnings per share
|
8,702
|
|
|
8,658
|
|
|
8,530
|
|
|||
|
|
|
|
|
|
||||||
Basic earnings per common share
|
$
|
1.32
|
|
|
$
|
0.78
|
|
|
$
|
1.04
|
|
|
|
|
|
|
|
||||||
Diluted earnings per common share
|
$
|
1.29
|
|
|
$
|
0.75
|
|
|
$
|
1.01
|
|
2019
|
$
|
1,481
|
|
2020
|
1,384
|
|
|
2021
|
1,420
|
|
|
2022
|
1,465
|
|
|
2023
|
1,490
|
|
|
Thereafter
|
8,508
|
|
|
|
|
||
Total
|
$
|
15,748
|
|
|
|
Number of
Shares
|
|
Weighted
Average
Price
|
|
Weighted
Average
Remaining
Contractual
Life (years)
|
|
Aggregate
Intrinsic
Value
|
|||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||
Options outstanding, December 31, 2017
|
|
|
361,507
|
|
|
|
$
|
5.20
|
|
|
|
|
|
|
|||||
Options exercised
|
|
|
(115,824
|
)
|
|
|
3.65
|
|
|
|
|
|
|
||||||
Options forfeited
|
|
|
(3,150
|
)
|
|
|
8.83
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Options outstanding, December 31, 2018
|
|
|
242,533
|
|
|
|
$
|
5.89
|
|
|
3.74
|
|
$
|
2,269,959
|
|
||||
Options exercisable, December 31, 2018
|
|
|
221,231
|
|
|
|
$
|
5.59
|
|
|
3.45
|
|
$
|
2,138,979
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Options price range at December 31, 2018
|
|
$
|
2.87
|
|
to
|
$
|
11.21
|
|
|
|
|
|
|
|
|
|
|
|
Options Outstanding
|
|||||||||||||||
Range of Exercise Prices
|
|
Number Outstanding at
December 31, 2018 |
|
Weighted-Average Remaining
Contractual Life (years)
|
|
Weighted- Average
Exercise Price
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||
$
|
2.87
|
|
|
—
|
|
$
|
3.65
|
|
|
51,862
|
|
|
0.6
|
|
$
|
3.10
|
|
$
|
4.94
|
|
|
—
|
|
$
|
5.23
|
|
|
94,320
|
|
|
3.27
|
|
5.03
|
|
|
$
|
7.06
|
|
|
—
|
|
$
|
8.00
|
|
|
62,625
|
|
|
5.39
|
|
7.53
|
|
|
$
|
8.59
|
|
|
—
|
|
$
|
11.21
|
|
|
33,726
|
|
|
7.25
|
|
9.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total options outstanding
|
|
242,533
|
|
|
|
|
|
|
Dividend yield
|
|
1.33
|
%
|
|
Expected volatility
|
|
27.67
|
%
|
|
Risk-free interest rate
|
|
1.54
|
%
|
|
Expected life (in years)
|
|
7.5
|
|
|
Weighted average fair value of options granted
|
|
$
|
3.05
|
|
|
Number of Shares
|
|
Weighted
Average Price
|
|||
|
|
|
|
|||
Unvested at December 31, 2017
|
49,021
|
|
|
$
|
14.01
|
|
Restricted stock earned
|
(14,931
|
)
|
|
12.93
|
|
|
Granted
|
34,450
|
|
|
16.78
|
|
|
Forfeited
|
(500
|
)
|
|
18.32
|
|
|
Unvested at December 31, 2018
|
68,040
|
|
|
$
|
15.61
|
|
|
|
Actual
|
|
For Capital
Adequacy
Purposes
|
|
To be Well Capitalized
under Prompt Corrective
Action Regulations*
|
|||||||||
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
(Dollars in Thousands)
|
|||||||||||||
As of December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Common Equity Tier 1 Capital (to risk weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Two River Bancorp
|
|
$
|
98,758
|
|
|
10.14
|
%
|
|
$
>
43,808
|
|
>
4.50%
|
|
N/A
|
|
N/A
|
Two River Community Bank
|
|
107,891
|
|
|
11.09
|
%
|
|
>
43,782
|
|
>
4.50%
|
|
$ >63,240
|
|
>
6.50%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total Capital (to risk weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Two River Bancorp
|
|
120,156
|
|
|
12.34
|
%
|
|
>
77,882
|
|
>
8.00%
|
|
N/A
|
|
N/A
|
|
Two River Community Bank
|
|
119,289
|
|
|
12.26
|
%
|
|
>
77,834
|
|
>
8.00%
|
|
>
97,293
|
|
>
10.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Tier 1 Capital (to risk weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Two River Bancorp
|
|
98,758
|
|
|
10.14
|
%
|
|
>
58,411
|
|
>
6.00%
|
|
>
58,411
|
|
>
6.00%
|
|
Two River Community Bank
|
|
107,891
|
|
|
11.09
|
%
|
|
>
58,376
|
|
>
6.00%
|
|
>
77,834
|
|
>
8.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Tier 1 Capital (to average assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Two River Bancorp
|
|
98,758
|
|
|
9.10
|
%
|
|
>
43,389
|
|
>
4.00%
|
|
N/A
|
|
N/A
|
|
Two River Community Bank
|
|
107,891
|
|
|
9.95
|
%
|
|
>
43,363
|
|
>
4.00%
|
|
>
54,204
|
|
>
5.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
As of December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Common Equity Tier 1 Capital (to risk weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Two River Bancorp
|
|
$
|
88,733
|
|
|
9.68
|
%
|
|
$
>
41,250
|
|
>
4.50%
|
|
N/A
|
|
N/A
|
Two River Community Bank
|
|
97,723
|
|
|
10.66
|
%
|
|
>
41,253
|
|
>
4.50%
|
|
$
>
59,587
|
|
>
6.50%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total Capital (to risk weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Two River Bancorp
|
|
109,401
|
|
|
11.93
|
%
|
|
>
73,362
|
|
>
8.00%
|
|
N/A
|
|
N/A
|
|
Two River Community Bank
|
|
108,391
|
|
|
11.82
|
%
|
|
>
73,361
|
|
>
8.00%
|
|
>
91,701
|
|
>
10.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Tier 1 Capital (to risk weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Two River Bancorp
|
|
88,733
|
|
|
9.68
|
%
|
|
>
55,000
|
|
>
6.00%
|
|
>
55,000
|
|
>
6.00%
|
|
Two River Community Bank
|
|
97,723
|
|
|
10.66
|
%
|
|
>
55,004
|
|
>
6.00%
|
|
>
73,338
|
|
>
8.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Tier 1 Capital (to average assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Two River Bancorp
|
|
88,733
|
|
|
8.85
|
%
|
|
>
40,105
|
|
>
4.00%
|
|
N/A
|
|
N/A
|
|
Two River Community Bank
|
|
97,723
|
|
|
9.76
|
%
|
|
>
40,050
|
|
>
4.00%
|
|
>
50,063
|
|
>
5.00%
|
(i)
|
a common equity Tier 1 capital ratio of
6.375%
;
|
(ii)
|
a Tier 1 Risk based capital ratio of
7.875%
; and
|
(iii)
|
a Total Risk based capital ratio of
9.875%
.
|
Level 1:
|
Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
|
Level 2:
|
Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability.
|
Level 3:
|
Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported with little or no market activity).
|
Description
|
|
(Level 1)
Quoted Prices
in Active
Markets for
Identical
Assets
|
|
(Level 2)
Significant
Other
Observable
Inputs
|
|
(Level 3)
Significant
Unobservable
Inputs
|
|
Total
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
At December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
U.S. Government agency securities
|
|
$
|
—
|
|
|
$
|
11,635
|
|
|
$
|
—
|
|
|
$
|
11,635
|
|
Municipal securities
|
|
—
|
|
|
487
|
|
|
—
|
|
|
487
|
|
||||
GSE – Residential mortgage-backed securities
|
|
—
|
|
|
5,947
|
|
|
—
|
|
|
5,947
|
|
||||
U.S. Government collateralized residential mortgage obligations
|
|
—
|
|
|
4,423
|
|
|
—
|
|
|
4,423
|
|
||||
Corporate debt securities, primarily financial institutions
|
|
—
|
|
|
1,915
|
|
|
—
|
|
|
1,915
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total securities available for sale
|
|
$
|
—
|
|
|
$
|
24,407
|
|
|
$
|
—
|
|
|
$
|
24,407
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total Equity Securities
|
|
$
|
2,451
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,451
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
At December 31, 2017
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
U.S. Government agency securities
|
|
$
|
—
|
|
|
$
|
10,057
|
|
|
$
|
—
|
|
|
$
|
10,057
|
|
Municipal securities
|
|
—
|
|
|
495
|
|
|
—
|
|
|
495
|
|
||||
GSE – Residential mortgage-backed securities
|
|
—
|
|
|
8,219
|
|
|
—
|
|
|
8,219
|
|
||||
U.S. Government collateralized residential mortgage obligations
|
|
—
|
|
|
7,482
|
|
|
—
|
|
|
7,482
|
|
||||
Corporate debt securities, primarily financial institutions
|
|
—
|
|
|
2,431
|
|
|
—
|
|
|
2,431
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total securities available for sale
|
|
$
|
—
|
|
|
$
|
28,684
|
|
|
$
|
—
|
|
|
$
|
28,684
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total Equity Securities
|
|
$
|
2,448
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,448
|
|
Description
|
|
(Level 1)
Quoted Prices
in Active
Markets for
Identical
Assets
|
|
(Level 2)
Significant
Other
Observable
Inputs
|
|
(Level 3)
Significant
Unobservable
Inputs
|
|
Total
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
At December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
OREO
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
585
|
|
|
$
|
585
|
|
|
|
|
|
|
|
|
|
|
||||||||
At December 31, 2017
|
|
|
|
|
|
|
|
|
||||||||
Impaired loans, net of allowance recorded
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
116
|
|
|
$
|
116
|
|
•
|
Impaired loans
– Impaired loans measured at fair value are those loans in which the Company has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon either independent third party appraisals of the properties or discounted cash flows based upon the expected proceeds. The appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. At December 31, 2018 and 2017, there were
no
loans that received a discount to their appraised values. At December 31,
2018
and 2017, there were
no
liquidation expenses. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements.
|
•
|
OREO
– Real estate properties acquired through, or in lieu of, loan foreclosure are carried at fair value less cost to sell. Fair value is based upon the appraised value of the collateral, adjusted by management for factors such as economic conditions and other market factors. At December 31, 2018, the discount and liquidation expenses for collateral adjustments to our OREO property was
9.5%
. These assets are included in Level 3 fair value based upon the lowest level of input that is significant to the fair value measurement. At
December 31, 2018
, OREO totaling $
585,000
were acquired by deed in lieu of foreclosure and are carried at fair value less estimated selling costs based on current appraisals. At
December 31,
2017
, the Company had
no
properties held in OREO. As of
December 31, 2018
and 2017, the Company initiated foreclosure proceedings on
three
loans and one loan secured by real estate in the amount of
$598,000
and
$490,000
, respectively.
|
|
|
Fair Value Measurements at December 31, 2018
|
||||||||||||||||||
(in thousands)
|
|
Carrying
Amount
|
|
Estimated
Fair
Value
|
|
(Level 1)
Quoted Prices
in Active
Markets for
Identical
Assets
|
|
(Level 2)
Significant
Other
Observable
Inputs
|
|
(Level 3)
Significant
Unobservable
Inputs
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
48,126
|
|
|
$
|
48,126
|
|
|
$
|
48,126
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities available for sale
|
|
24,407
|
|
|
24,407
|
|
|
—
|
|
|
24,407
|
|
|
—
|
|
|||||
Securities held to maturity
|
|
47,455
|
|
|
47,266
|
|
|
—
|
|
|
47,266
|
|
|
—
|
|
|||||
Equity securities
|
|
2,451
|
|
|
2,451
|
|
|
2,451
|
|
|
—
|
|
|
—
|
|
|||||
Restricted investments
|
|
6,082
|
|
|
6,082
|
|
|
—
|
|
|
—
|
|
|
6,082
|
|
|||||
Loans held for sale
|
|
1,496
|
|
|
1,525
|
|
|
—
|
|
|
—
|
|
|
1,525
|
|
|||||
Loans receivable, net
|
|
909,903
|
|
|
887,374
|
|
|
—
|
|
|
—
|
|
|
887,374
|
|
|||||
Accrued interest receivable
|
|
2,583
|
|
|
2,583
|
|
|
—
|
|
|
643
|
|
|
1,940
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
917,354
|
|
|
915,435
|
|
|
—
|
|
|
915,435
|
|
|
—
|
|
|||||
Securities sold under agreements to repurchase
|
|
19,402
|
|
|
19,402
|
|
|
—
|
|
|
19,402
|
|
|
—
|
|
|||||
FHLB and other borrowings
|
|
22,500
|
|
|
21,966
|
|
|
—
|
|
|
21,966
|
|
|
—
|
|
|||||
Subordinated debt
|
|
9,923
|
|
|
9,999
|
|
|
—
|
|
|
9,999
|
|
|
—
|
|
|||||
Accrued interest payable
|
|
119
|
|
|
119
|
|
|
—
|
|
|
119
|
|
|
—
|
|
|
|
Fair Value Measurements at December 31, 2017
|
||||||||||||||||||
(in thousands)
|
|
Carrying
Amount
|
|
Estimated
Fair
Value
|
|
(Level 1)
Quoted Prices
in Active
Markets for
Identical
Assets
|
|
(Level 2)
Significant
Other
Observable
Inputs
|
|
(Level 3)
Significant
Unobservable
Inputs
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
48,219
|
|
|
$
|
48,219
|
|
|
$
|
48,219
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities available for sale
|
|
28,684
|
|
|
28,684
|
|
|
|
|
|
28,684
|
|
|
—
|
|
|||||
Securities held to maturity
|
|
58,002
|
|
|
58,549
|
|
|
—
|
|
|
58,549
|
|
|
—
|
|
|||||
Equity securities
|
|
2,448
|
|
|
2,448
|
|
|
2,448
|
|
|
—
|
|
|
—
|
|
|||||
Restricted investments
|
|
5,430
|
|
|
5,430
|
|
|
—
|
|
|
—
|
|
|
5,430
|
|
|||||
Loans held for sale
|
|
2,581
|
|
|
2,738
|
|
|
—
|
|
|
—
|
|
|
2,738
|
|
|||||
Loans receivable, net
|
|
840,206
|
|
|
841,477
|
|
|
—
|
|
|
—
|
|
|
841,477
|
|
|||||
Accrued interest receivable
|
|
2,554
|
|
|
2,554
|
|
|
—
|
|
|
638
|
|
|
1,916
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
861,557
|
|
|
860,129
|
|
|
—
|
|
|
860,129
|
|
|
—
|
|
|||||
Securities sold under agreements to repurchase
|
|
27,120
|
|
|
27,120
|
|
|
—
|
|
|
27,120
|
|
|
—
|
|
|||||
FHLB and other borrowings
|
|
25,800
|
|
|
25,382
|
|
|
—
|
|
|
25,382
|
|
|
—
|
|
|||||
Subordinated debt
|
|
9,888
|
|
|
9,812
|
|
|
—
|
|
|
9,812
|
|
|
—
|
|
|||||
Accrued interest payable
|
|
70
|
|
|
70
|
|
|
—
|
|
|
70
|
|
|
—
|
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In Thousands)
|
||||||
Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
355
|
|
|
$
|
41
|
|
Investments in subsidiaries
|
125,631
|
|
|
115,507
|
|
||
Other assets
|
591
|
|
|
1,067
|
|
||
|
|
|
|
||||
Total assets
|
$
|
126,577
|
|
|
$
|
116,615
|
|
|
|
|
|
||||
Liabilities and Shareholders’ Equity
|
|
|
|
||||
Subordinated debt
|
$
|
9,923
|
|
|
$
|
9,888
|
|
Other liabilities
|
156
|
|
|
156
|
|
||
Shareholders’ equity
|
116,498
|
|
|
106,571
|
|
||
|
|
|
|
||||
Total liabilities and shareholders’ equity
|
$
|
126,577
|
|
|
$
|
116,615
|
|
|
December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In Thousands)
|
||||||||||
|
|
|
|
|
|
||||||
Dividends from Bank
|
$
|
1,533
|
|
|
$
|
1,578
|
|
|
$
|
1,636
|
|
Interest expense - subordinated debt
|
660
|
|
|
658
|
|
|
656
|
|
|||
Other operating expenses
|
317
|
|
|
279
|
|
|
233
|
|
|||
|
|
|
|
|
|
||||||
Income before income taxes
|
556
|
|
|
641
|
|
|
747
|
|
|||
|
|
|
|
|
|
||||||
Income tax benefit
|
(406
|
)
|
|
(483
|
)
|
|
(239
|
)
|
|||
|
|
|
|
|
|
||||||
Income before undistributed income of subsidiaries
|
962
|
|
|
1,124
|
|
|
986
|
|
|||
|
|
|
|
|
|
||||||
Equity in undistributed income of subsidiaries
|
10,244
|
|
|
5,378
|
|
|
7,645
|
|
|||
|
|
|
|
|
|
||||||
Net income
|
$
|
11,206
|
|
|
$
|
6,502
|
|
|
$
|
8,631
|
|
|
|
|
|
|
|
||||||
Equity in other comprehensive income (loss) of subsidiaries, net of tax
|
(121
|
)
|
|
87
|
|
|
8
|
|
|||
|
|
|
|
|
|
||||||
Total comprehensive income, net of tax
|
$
|
11,085
|
|
|
$
|
6,589
|
|
|
$
|
8,639
|
|
|
December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(In Thousands)
|
||||||||||
|
|
|
|
|
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
11,206
|
|
|
$
|
6,502
|
|
|
$
|
8,631
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Equity in undistributed income of subsidiaries, net of dividends received from Bank
|
(10,244
|
)
|
|
(5,378
|
)
|
|
(7,645
|
)
|
|||
Amortization of subordinated debt issuance costs
|
35
|
|
|
33
|
|
|
31
|
|
|||
Stock-based compensation expense
|
317
|
|
|
279
|
|
|
231
|
|
|||
Other, net
|
475
|
|
|
(543
|
)
|
|
(264
|
)
|
|||
|
|
|
|
|
|
||||||
Net cash provided by operating activities
|
1,789
|
|
|
893
|
|
|
984
|
|
|||
|
|
|
|
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Contributions to subsidiary, net
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net cash used in investing activities
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Proceeds from exercise of stock options
|
423
|
|
|
276
|
|
|
104
|
|
|||
Tax benefit relating to stock compensation
|
—
|
|
|
59
|
|
|
25
|
|
|||
Proceeds from employee stock purchase program
|
63
|
|
|
67
|
|
|
56
|
|
|||
Redemption of preferred stock, Series C
|
—
|
|
|
—
|
|
|
—
|
|
|||
Proceeds from subordinated debt placement, net of issuance costs
|
—
|
|
|
—
|
|
|
—
|
|
|||
Common stock repurchased
|
(251
|
)
|
|
—
|
|
|
(148
|
)
|
|||
Cash dividends paid on common stock
|
(1,710
|
)
|
|
(1,415
|
)
|
|
(1,193
|
)
|
|||
Dividends paid on preferred stock, Series C
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Net cash provided by (used in) financing activities
|
(1,475
|
)
|
|
(1,013
|
)
|
|
(1,156
|
)
|
|||
|
|
|
|
|
|
||||||
Net increase (decrease) in cash and cash equivalents
|
314
|
|
|
(120
|
)
|
|
(172
|
)
|
|||
|
|
|
|
|
|
||||||
Cash and Cash Equivalents - Beginning
|
41
|
|
|
161
|
|
|
333
|
|
|||
|
|
|
|
|
|
||||||
Cash and Cash Equivalents – Ending
|
$
|
355
|
|
|
$
|
41
|
|
|
$
|
161
|
|
|
|
|
|
|
|
|
|
2018
|
||||||||||||||
|
|
Fourth Quarter
|
|
Third Quarter
|
|
Second Quarter
|
|
First Quarter
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Interest income
|
|
$
|
11,776
|
|
|
$
|
11,342
|
|
|
$
|
10,907
|
|
|
$
|
10,467
|
|
Interest expense
|
|
2,523
|
|
|
2,239
|
|
|
1,937
|
|
|
1,667
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net interest income
|
|
9,253
|
|
|
9,103
|
|
|
8,970
|
|
|
8,800
|
|
||||
Provision for loan losses
|
|
—
|
|
|
150
|
|
|
225
|
|
|
400
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net interest income after provision for loan losses
|
|
9,253
|
|
|
8,953
|
|
|
8,745
|
|
|
8,400
|
|
||||
Non-interest income
|
|
1,370
|
|
|
1,355
|
|
|
1,496
|
|
|
1,310
|
|
||||
Non-interest expense
|
|
6,447
|
|
|
6,461
|
|
|
6,551
|
|
|
6,227
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income before income taxes
|
|
4,176
|
|
|
3,847
|
|
|
3,690
|
|
|
3,483
|
|
||||
Income taxes
|
|
1,130
|
|
|
1,013
|
|
|
1,040
|
|
|
807
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
|
$
|
3,046
|
|
|
$
|
2,834
|
|
|
$
|
2,650
|
|
|
$
|
2,676
|
|
Per common share data:
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings
|
|
$
|
0.36
|
|
|
$
|
0.33
|
|
|
$
|
0.31
|
|
|
$
|
0.32
|
|
Diluted earnings
|
|
$
|
0.35
|
|
|
$
|
0.33
|
|
|
$
|
0.30
|
|
|
$
|
0.31
|
|
|
|
2017
|
||||||||||||||
|
|
Fourth Quarter
|
|
Third Quarter
|
|
Second Quarter
|
|
First Quarter
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Interest income
|
|
$
|
10,074
|
|
|
$
|
9,824
|
|
|
$
|
9,349
|
|
|
$
|
8,993
|
|
Interest expense
|
|
1,545
|
|
|
1,408
|
|
|
1,391
|
|
|
1,363
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net interest income
|
|
8,529
|
|
|
8,416
|
|
|
7,958
|
|
|
7,630
|
|
||||
Provision for loan losses
|
|
675
|
|
|
255
|
|
|
375
|
|
|
225
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net interest income after provision for loan losses
|
|
7,854
|
|
|
8,161
|
|
|
7,583
|
|
|
7,405
|
|
||||
Non-interest income
|
|
1,343
|
|
|
1,453
|
|
|
1,538
|
|
|
1,125
|
|
||||
Non-interest expense
|
|
5,919
|
|
|
6,175
|
|
|
6,071
|
|
|
5,777
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income before income taxes
|
|
3,278
|
|
|
3,439
|
|
|
3,050
|
|
|
2,753
|
|
||||
Income taxes
|
|
2,943
|
|
|
1,202
|
|
|
922
|
|
|
951
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
|
$
|
335
|
|
|
$
|
2,237
|
|
|
$
|
2,128
|
|
|
$
|
1,802
|
|
Per common share data:
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings
|
|
$
|
0.04
|
|
|
$
|
0.27
|
|
|
$
|
0.25
|
|
|
$
|
0.22
|
|
Diluted earnings
|
|
$
|
0.04
|
|
|
$
|
0.26
|
|
|
$
|
0.25
|
|
|
$
|
0.21
|
|
|
|
TWO RIVER BANCORP
|
|
|
|
|
|
|
|
Date:
|
March 15, 2019
|
By:
|
/s/ WILLIAM D. MOSS
|
|
|
|
|
William D. Moss
|
|
|
|
|
Chairman of the Board, President and Chief Executive Officer
|
|
Signature
|
|
Capacity
|
|
Date
|
|
|
|
|
|
/s/ WILLIAM D. MOSS
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Chairman of the Board, President, Chief Executive Officer, Director
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March 15, 2019
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William D. Moss
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/s/ A. RICHARD ABRAHAMIAN
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Executive Vice President, Chief Financial Officer
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March 15, 2019
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A. Richard Abrahamian
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(Principal Financial and Accounting Officer)
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/s/ JAMES M. BOLLERMAN
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Vice Chairman and co-Lead Independent Director of the Board
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March 15, 2019
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James M. Bollerman
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/s/ JOHN J. PERRI, JR., CPA
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Vice Chairman and co-Lead Independent Director of the Board
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March 15, 2019
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John J. Perri, Jr., CPA
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/s/ CHARLES F. BUTRICO, JR.
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Director
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March 15, 2019
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Charles F. Butrico, Jr.
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/s/ ROBERT E. GREGORY
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Director
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March 15, 2019
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Robert E. Gregory
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/s/ ROBERT B. GROSSMAN, MD
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Director
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March 15, 2019
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Robert B. Grossman, MD
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/s/ WILLIAM F. LaMORTE
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Director
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March 15, 2019
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William F. LaMorte
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/s/ JOSEPH F.X. O’SULLIVAN
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Director
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March 15, 2019
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Joseph F.X. O’Sullivan
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/s/ WILLIAM STATTER
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Director
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March 15, 2019
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William Statter
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/s/ ANDREW A. VITALE, CPA
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Director
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March 15, 2019
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Andrew A. Vitale, CPA
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/s/ ROBIN ZAGER
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Director, Corporate Secretary
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March 15, 2019
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Robin Zager
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Section 1.
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Annual Meetings of Shareholders.
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Section 2.
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Special Meetings of Shareholders.
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Section 3.
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Notices of Meetings of Shareholders.
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Section 4.
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Quorum.
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Section 5.
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Qualifications of Voters.
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Section 6.
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Voting.
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Section 7.
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Selection of Inspectors.
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Section 8.
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Duties of Inspectors.
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Section 9.
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Advance Notice of Shareholder Nominees for Director and Other Shareholder Proposals.
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Section 10.
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Procedure for Action by Written Consent; Inspectors and Effectiveness.
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Section 1.
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Directors and Term of Office.
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Section 2.
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Election of Directors.
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Section 3.
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Vacancies.
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Section 4.
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Compensation.
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Section 5.
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Regular Meetings of Directors.
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Section 6.
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Notice of Regular Meetings of Directors.
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Section 7.
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Special Meetings of Directors.
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Section 8.
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Notice of Special Meetings of Directors.
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Section 9.
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Quorum.
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Section 10.
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Action of Directors or Committees Without a Meeting or When Directors are in Separate Places.
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Section 11.
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Common Directorship and Director’s Personal Interest.
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Section 1.
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Establishment of Executive Committee and Other Committees.
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Section 2.
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Vacancies.
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Section 3.
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Powers of Committees.
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Section 4.
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Regular Meetings.
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Section 5.
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Notice of Regular Meetings.
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Section 6.
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Special Meetings.
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Section 7.
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Notice of Special Meetings.
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Section 8.
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Quorum.
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Section 9.
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Committee Charters.
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Section 10.
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Committee Reports.
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Section 1.
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Officers Enumerated.
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Section 2.
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Other Officers.
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Section 3.
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Term of Office.
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Section 4.
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Vacancies.
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Section 5.
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Intentionally Omitted.
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Section 6.
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The Chief Executive Officer.
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Section 7.
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The President.
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Section 8.
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The Vice-Presidents.
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Section 9.
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The Secretary.
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Section 10.
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The Treasurer.
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Section 11.
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The Controller.
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Section 12.
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Assistant Vice-Presidents, Assistant Secretaries, Assistant Treasurers and Assistant Controller.
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Section 1.
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Certificates for Shares.
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Section 2.
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Transfer Agents and Registrars.
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Section 3.
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Transfer Agents and Registrars.
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Section 4.
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Lost, Stolen or Destroyed Certificates.
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Section 1.
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Dividends.
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Section 2.
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Finances.
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Section 1.
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Form of Seal.
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Section 2.
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Indemnification of Directors, Officers and Employees.
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Section 3.
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Non-Exclusivity of Indemnification Rights.
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Name of Subsidiary
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State or Other Jurisdiction of Incorporation or Organization
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Two River Community Bank
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New Jersey
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TRCB Investment Company*
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New Jersey
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1.
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I have reviewed this annual report on Form 10-K of Two River Bancorp;
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2.
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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;
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3.
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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;
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4.
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The registrant's other certifying officer(s) 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:
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a.
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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;
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a.
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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b.
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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
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c.
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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
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a.
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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
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b.
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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.
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Date: March 15, 2019
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/s/ WILLIAM D. MOSS
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Name:
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William D. Moss
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Title:
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Chairman of the Board, President and Chief Executive Officer
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1.
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I have reviewed this annual report on Form 10-K of Two River Bancorp;
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2.
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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;
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3.
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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;
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4.
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The registrant's other certifying officer(s) 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:
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a.
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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;
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a.
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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b.
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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
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c.
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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
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a.
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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
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b.
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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.
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Date: March 15, 2019
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/s/ A. RICHARD ABRAHAMIAN
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Name:
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A. Richard Abrahamian
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Title:
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Executive Vice President and Chief Financial Officer
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/s/ WILLIAM D. MOSS
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Name: William D. Moss
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Title: Chairman of the Board, President and Chief Executive Officer
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Date: March 15, 2019
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/s/ A. RICHARD ABRAHAMIAN
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Name: A. Richard Abrahamian
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Title: Executive Vice President and Chief Financial Officer
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Date: March 15, 2019
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