☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TWO RIVER
BANCORP
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(Exact Name of Registrant as Specified in Its Charter)
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New Jersey
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20-3700861
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(State of Other Jurisdiction
of Incorporation or Organization)
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(I.R.S. Employer Identification No.)
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766 Shrewsbury Avenue, Tinton Falls, New Jersey
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07724
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(Address of Principal Executive Offices)
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(Zip Code)
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(732) 389-8722
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(Registrant’s Telephone Number, Including Area Code)
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(Former name, former address and former fiscal year, if changed since last report)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, no par value per share
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TRCB
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The NASDAQ Stock Market LLC
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Large accelerated filer
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☐
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Accelerated filer
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☒
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Non-accelerated filer
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☐
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Smaller reporting company
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☒
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Emerging growth company
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☐
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Page
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Consolidated Balance Sheets (unaudited) at June 30, 2019 and December 31, 2018
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Consolidated Statements of Operations (unaudited) for the three and six months ended June 30, 2019 and 2018
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Consolidated Statements of Comprehensive Income (unaudited) for the three and six months ended June 30, 2019 and 2018
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Consolidated Statements of Shareholders' Equity (unaudited) for the six months ended June 30, 2019 and 2018
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Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2019 and 2018
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June 30,
2019 |
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December 31,
2018 |
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ASSETS
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Cash and due from banks
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$
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19,798
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$
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24,067
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Interest-bearing deposits in bank
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50,242
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24,059
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Cash and cash equivalents
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70,040
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48,126
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Securities available for sale, at fair value (amortized cost of $23,965 and $25,017 at June 30, 2019 and December 31, 2018, respectively)
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23,604
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24,407
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Securities held to maturity, at amortized cost (fair value of $45,050 and $47,266 at June 30, 2019 and December 31, 2018, respectively)
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43,774
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47,455
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Equity securities, at fair value
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2,548
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2,451
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Restricted investments, at cost
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6,447
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6,082
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Loans held for sale
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1,093
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1,496
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Loans
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953,080
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921,301
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Allowance for loan losses
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(11,684
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)
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(11,398
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)
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Net loans
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941,396
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909,903
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Other real estate owned ("OREO")
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2,912
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585
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Bank owned life insurance
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22,188
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22,098
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Premises and equipment, net
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6,505
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5,917
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Operating lease right-of-use assets
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5,004
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—
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Accrued interest receivable
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2,929
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2,583
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Goodwill
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18,109
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18,109
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Other assets
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7,248
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7,207
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Total Assets
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$
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1,153,797
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$
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1,096,419
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LIABILITIES AND SHAREHOLDERS’ EQUITY
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Deposits:
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Non-interest-bearing
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$
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179,886
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$
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176,655
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Interest-bearing
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792,706
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740,699
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Total Deposits
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972,592
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917,354
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Securities sold under agreements to repurchase
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14,162
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19,402
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FHLB and other borrowings
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20,700
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22,500
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Subordinated debt
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9,942
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9,923
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Accrued interest payable
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94
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119
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Operating lease liabilities
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5,137
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—
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Other liabilities
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9,754
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10,623
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Total Liabilities
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1,032,381
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979,921
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Shareholders' Equity
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Preferred stock, no par value; 6,500,000 shares authorized, no shares issued and outstanding
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—
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—
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Common stock, no par value; 25,000,000 shares authorized;
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Issued – 9,017,520 and 8,935,437 at June 30, 2019 and December 31, 2018, respectively
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Outstanding – 8,656,830 and 8,606,992 at June 30, 2019 and December 31, 2018, respectively
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80,954
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80,481
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Retained earnings
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43,857
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39,109
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Treasury stock, at cost; 360,690 and 328,445 shares at June 30, 2019 and December 31, 2018, respectively
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(3,129
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)
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(2,647
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)
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Accumulated other comprehensive loss
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(266
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)
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(445
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)
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Total Shareholders' Equity
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121,416
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116,498
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Total Liabilities and Shareholders’ Equity
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$
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1,153,797
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$
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1,096,419
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Three Months Ended
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Six Months Ended
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||||||||||||
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June 30,
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June 30,
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||||||||||||
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2019
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2018
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2019
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2018
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||||||||
Interest Income
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Loans, including fees
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$
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11,731
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$
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10,243
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$
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23,043
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$
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20,064
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Securities:
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Taxable
|
298
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290
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629
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587
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Tax-exempt
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234
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280
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473
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562
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Interest-bearing deposits
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216
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94
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|
403
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161
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Total Interest Income
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12,479
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10,907
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24,548
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21,374
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Interest Expense
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Deposits
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2,771
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|
1,641
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|
5,189
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|
2,999
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Securities sold under agreements to repurchase
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9
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15
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20
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29
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FHLB and other borrowings
|
101
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116
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233
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|
246
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Subordinated debt
|
166
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165
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|
331
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|
330
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Total Interest Expense
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3,047
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|
1,937
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5,773
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3,604
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Net Interest Income
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9,432
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|
8,970
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18,775
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17,770
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Provision for Loan Losses
|
100
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|
225
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|
525
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|
625
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Net Interest Income after Provision for Loan Losses
|
9,332
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|
|
8,745
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18,250
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17,145
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Non-Interest Income
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Service fees on deposit accounts
|
173
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|
|
239
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|
|
339
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|
|
477
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Mortgage banking
|
424
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|
409
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|
704
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|
747
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|
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Other loan fees
|
138
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|
|
137
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|
298
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|
|
248
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|
||||
Earnings from investment in bank owned life insurance
|
128
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|
|
132
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|
|
271
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|
|
262
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|
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Gain on sale of SBA loans
|
130
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|
387
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|
|
336
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|
|
718
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|
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Net realized gain on sale of securities
|
1
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—
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|
|
1
|
|
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—
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|
||||
Other income
|
238
|
|
|
192
|
|
|
440
|
|
|
354
|
|
||||
Total Non-Interest Income
|
1,232
|
|
|
1,496
|
|
|
2,389
|
|
|
2,806
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|
||||
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||||||||
Non-Interest Expenses
|
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits
|
3,942
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|
|
4,010
|
|
|
7,783
|
|
|
7,895
|
|
||||
Occupancy and equipment
|
1,030
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|
|
1,043
|
|
|
2,072
|
|
|
2,133
|
|
||||
Professional
|
472
|
|
|
488
|
|
|
906
|
|
|
828
|
|
||||
Insurance
|
66
|
|
|
64
|
|
|
131
|
|
|
121
|
|
||||
FDIC insurance and assessments
|
114
|
|
|
123
|
|
|
238
|
|
|
246
|
|
||||
Advertising
|
120
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|
|
130
|
|
|
190
|
|
|
190
|
|
||||
Data processing
|
174
|
|
|
174
|
|
|
362
|
|
|
326
|
|
||||
Outside services fees
|
60
|
|
|
80
|
|
|
114
|
|
|
161
|
|
||||
OREO expenses, impairments and sales, net
|
(154
|
)
|
|
(14
|
)
|
|
(150
|
)
|
|
(15
|
)
|
||||
Loan workout expenses
|
17
|
|
|
45
|
|
|
9
|
|
|
96
|
|
||||
Other operating
|
513
|
|
|
408
|
|
|
994
|
|
|
797
|
|
||||
Total Non-Interest Expenses
|
6,354
|
|
|
6,551
|
|
|
12,649
|
|
|
12,778
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income before Income Taxes
|
4,210
|
|
|
3,690
|
|
|
7,990
|
|
|
7,173
|
|
||||
Income tax expense
|
1,162
|
|
|
1,040
|
|
|
2,159
|
|
|
1,847
|
|
||||
Net Income
|
$
|
3,048
|
|
|
$
|
2,650
|
|
|
$
|
5,831
|
|
|
$
|
5,326
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings Per Common Share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.35
|
|
|
$
|
0.31
|
|
|
$
|
0.68
|
|
|
$
|
0.63
|
|
Diluted
|
$
|
0.35
|
|
|
$
|
0.30
|
|
|
$
|
0.67
|
|
|
$
|
0.61
|
|
Weighted average common shares outstanding
|
|
|
|
|
|
|
|
|
|||||||
Basic
|
8,596
|
|
|
8,488
|
|
|
8,594
|
|
|
8,480
|
|
||||
Diluted
|
8,709
|
|
|
8,690
|
|
|
8,715
|
|
|
8,695
|
|
|
Three Months Ended
|
||||||
|
June 30,
|
||||||
|
2019
|
|
2018
|
||||
Net income
|
$
|
3,048
|
|
|
$
|
2,650
|
|
Other comprehensive income (loss):
|
|
|
|
||||
|
|
|
|
||||
Unrealized holdings gain (loss) on securities available for sale, net of income tax expense (benefit) 2019: $42, 2018: ($20)
|
106
|
|
|
(55
|
)
|
||
|
|
|
|
||||
Other comprehensive income (loss)
|
106
|
|
|
(55
|
)
|
||
|
|
|
|
||||
Total comprehensive income
|
$
|
3,154
|
|
|
$
|
2,595
|
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
|
2019
|
|
2018
|
||||
Net income
|
$
|
5,831
|
|
|
$
|
5,326
|
|
Other comprehensive income/(loss):
|
|
|
|
||||
|
|
|
|
||||
Unrealized holdings gain (loss) on securities available for sale, net of income tax expense (benefit) 2019: $70; 2018: ($74)
|
179
|
|
|
(194
|
)
|
||
|
|
|
|
||||
Other comprehensive income (loss):
|
179
|
|
|
(194
|
)
|
||
|
|
|
|
||||
Total comprehensive income
|
$
|
6,010
|
|
|
$
|
5,132
|
|
|
|
|
|
|
Common Stock
|
|
|
|
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
Shareholders’
Equity
|
|||||||||||||
|
Outstanding
Shares
|
|
Amount
|
|
Retained
Earnings
|
|
Treasury
Stock
|
|
|
|||||||||||||
Balance, January 1, 2019
|
8,606,992
|
|
|
$
|
80,481
|
|
|
$
|
39,109
|
|
|
$
|
(2,647
|
)
|
|
$
|
(445
|
)
|
|
$
|
116,498
|
|
Net income
|
—
|
|
|
—
|
|
|
5,831
|
|
|
—
|
|
|
—
|
|
|
5,831
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
179
|
|
|
179
|
|
|||||
Stock-based compensation expense
|
—
|
|
|
195
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
195
|
|
|||||
Cash dividends on common stock ($0.125 per share)
|
—
|
|
|
—
|
|
|
(1,083
|
)
|
|
—
|
|
|
—
|
|
|
(1,083
|
)
|
|||||
Options exercised
|
58,765
|
|
|
244
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
244
|
|
|||||
Employee stock purchase program
|
2,168
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|||||
Common stock repurchased
|
(32,245
|
)
|
|
|
|
|
|
(482
|
)
|
|
|
|
(482
|
)
|
||||||||
Restricted stock and other awards
|
21,150
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Balance, June 30, 2019
|
8,656,830
|
|
|
$
|
80,954
|
|
|
$
|
43,857
|
|
|
$
|
(3,129
|
)
|
|
$
|
(266
|
)
|
|
$
|
121,416
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, January 1, 2018
|
8,470,030
|
|
|
$
|
79,678
|
|
|
$
|
29,593
|
|
|
$
|
(2,396
|
)
|
|
$
|
(304
|
)
|
|
$
|
106,571
|
|
Net income
|
—
|
|
|
—
|
|
|
5,326
|
|
|
—
|
|
|
—
|
|
|
5,326
|
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(194
|
)
|
|
(194
|
)
|
|||||
Stock-based compensation expense
|
—
|
|
|
140
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
140
|
|
|||||
Cash dividends on common stock ($0.09 per share)
|
—
|
|
|
—
|
|
|
(766
|
)
|
|
—
|
|
|
—
|
|
|
(766
|
)
|
|||||
Options exercised
|
64,496
|
|
|
238
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
238
|
|
|||||
AOCI reclassification related to Tax Reform
|
—
|
|
|
—
|
|
|
59
|
|
|
—
|
|
|
(59
|
)
|
|
—
|
|
|||||
AOCI reclassification due to adoption of ASU 2016-01
|
—
|
|
|
—
|
|
|
(39
|
)
|
|
—
|
|
|
39
|
|
|
—
|
|
|||||
Employee stock purchase program
|
1,817
|
|
|
32
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|||||
Restricted stock and other awards
|
19,400
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Shares forfeited
|
(500
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Balance, June 30, 2018
|
8,555,243
|
|
|
$
|
80,088
|
|
|
$
|
34,173
|
|
|
$
|
(2,396
|
)
|
|
$
|
(518
|
)
|
|
$
|
111,347
|
|
|
Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
|
(in thousands)
|
||||||
Cash Flows From Operating Activities
|
|
|
|
||||
Net income
|
$
|
5,831
|
|
|
$
|
5,326
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
311
|
|
|
326
|
|
||
Provision for loan losses
|
525
|
|
|
625
|
|
||
Amortization of subordinated debt issuance costs
|
19
|
|
|
17
|
|
||
Net amortization of securities premiums and discounts
|
287
|
|
|
384
|
|
||
Earnings from investment in bank owned life insurance
|
(254
|
)
|
|
(262
|
)
|
||
Proceeds from sale of mortgage loans held for sale
|
31,323
|
|
|
27,085
|
|
||
Origination of mortgage loans held for sale
|
(30,361
|
)
|
|
(26,584
|
)
|
||
Gain on sale of mortgage loans held for sale
|
(559
|
)
|
|
(451
|
)
|
||
Gain on sale of loans transferred from held for investment to held for sale
|
(59
|
)
|
|
(200
|
)
|
||
Net realized gain on sale of OREO
|
(188
|
)
|
|
—
|
|
||
Stock-based compensation expense
|
195
|
|
|
140
|
|
||
Death benefit on bank owned life insurance
|
(17
|
)
|
|
—
|
|
||
Net realized gain on sale of securities available for sale
|
(1
|
)
|
|
—
|
|
||
Proceeds from sale of SBA loans held for sale
|
4,627
|
|
|
1,798
|
|
||
Origination of SBA loans held for sale
|
(4,291
|
)
|
|
(1,086
|
)
|
||
Gain from sale of SBA loans held for sale
|
(336
|
)
|
|
(718
|
)
|
||
Unrealized (gain) loss on equity securities
|
(67
|
)
|
|
58
|
|
||
Net non-cash operating lease right-of-use assets and lease liabilities
|
133
|
|
|
—
|
|
||
Increase in assets:
|
|
|
|
||||
Accrued interest receivable
|
(346
|
)
|
|
(153
|
)
|
||
Other assets
|
(141
|
)
|
|
(566
|
)
|
||
Increase (decrease) in liabilities:
|
|
|
|
||||
Accrued interest payable
|
(25
|
)
|
|
8
|
|
||
Other liabilities
|
(869
|
)
|
|
148
|
|
||
Net Cash Provided by Operating Activities
|
5,737
|
|
|
5,895
|
|
||
Cash Flows From Investing Activities
|
|
|
|
||||
Purchase of securities available for sale
|
(3,757
|
)
|
|
(4,245
|
)
|
||
Purchase of securities held to maturity
|
—
|
|
|
(1,958
|
)
|
||
Proceeds from repayments, calls and maturities of securities available for sale
|
1,984
|
|
|
4,388
|
|
||
Proceeds from repayments, calls and maturities of securities held to maturity
|
3,446
|
|
|
1,782
|
|
||
Proceeds from sales of securities available for sale
|
2,774
|
|
|
—
|
|
||
Proceeds from sale of loans transferred from held for investment to held for sale
|
3,079
|
|
|
10,030
|
|
||
Net increase in loans
|
(37,855
|
)
|
|
(49,417
|
)
|
||
Purchases of premises and equipment
|
(899
|
)
|
|
(221
|
)
|
||
Purchase of restricted investments, net
|
(365
|
)
|
|
(475
|
)
|
||
Proceeds from death benefit of bank owned life insurance
|
181
|
|
|
—
|
|
||
Proceeds from sale of OREO
|
678
|
|
|
—
|
|
||
Net Cash Used In Investing Activities
|
(30,734
|
)
|
|
(40,116
|
)
|
||
Cash
Flows
From
Financing
Activities
|
|
|
|
||||
Net increase in deposits
|
55,238
|
|
|
19,322
|
|
||
Net decrease in securities sold under agreements to repurchase
|
(5,240
|
)
|
|
(7,242
|
)
|
||
Proceeds from FHLB and other borrowings
|
20,000
|
|
|
—
|
|
||
Repayment of FHLB and other borrowings
|
(21,800
|
)
|
|
(1,300
|
)
|
||
Cash dividends paid – common stock
|
(1,083
|
)
|
|
(766
|
)
|
||
Proceeds from employee stock purchase plan
|
34
|
|
|
32
|
|
||
Proceeds from exercise of stock options
|
244
|
|
|
238
|
|
||
Common stock repurchased
|
(482
|
)
|
|
—
|
|
||
Net Cash Provided by Financing Activities
|
46,911
|
|
|
10,284
|
|
||
Net Increase (Decrease) in Cash and Cash Equivalents
|
21,914
|
|
|
(23,937
|
)
|
||
Cash and Cash Equivalents – Beginning
|
48,126
|
|
|
48,219
|
|
||
Cash and Cash Equivalents - Ending
|
$
|
70,040
|
|
|
$
|
24,282
|
|
|
|
|
|
||||
|
Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
|
(in thousands)
|
||||||
Supplementary cash flow information:
|
|
|
|
||||
Interest paid
|
$
|
5,798
|
|
|
$
|
3,596
|
|
Income taxes paid
|
$
|
2,226
|
|
|
$
|
2,129
|
|
Supplemental schedule of non-cash activities:
|
|
|
|
||||
Other real estate acquired in settlement of loans
|
$
|
2,817
|
|
|
$
|
—
|
|
Transfer of loans held for investment to loans held for sale
|
$
|
3,020
|
|
|
$
|
9,830
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(Dollars in Thousands)
|
||||||||||||||
Non-Interest Income
|
|
|
|
|
|
|
|
||||||||
In-scope of Topic 606
|
|
|
|
|
|
|
|
||||||||
Service fees on deposit accounts
|
$
|
173
|
|
|
$
|
239
|
|
|
$
|
339
|
|
|
$
|
477
|
|
Other income
|
164
|
|
|
145
|
|
|
309
|
|
|
278
|
|
||||
Non-Interest Income (in-scope of Topic 606)
|
337
|
|
|
384
|
|
|
648
|
|
|
755
|
|
||||
Non-Interest Income (out-of-scope of Topic 606)
|
895
|
|
|
1,112
|
|
|
1,741
|
|
|
2,051
|
|
||||
Total Non-Interest Income
|
$
|
1,232
|
|
|
$
|
1,496
|
|
|
$
|
2,389
|
|
|
$
|
2,806
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(In Thousands, Except Per Share Data)
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
3,048
|
|
|
$
|
2,650
|
|
|
$
|
5,831
|
|
|
$
|
5,326
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding – Basic
|
8,596
|
|
|
8,488
|
|
|
8,594
|
|
|
8,480
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Effect of dilutive securities, stock options and restricted stock
|
113
|
|
|
202
|
|
|
121
|
|
|
215
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding – Diluted
|
8,709
|
|
|
8,690
|
|
|
8,715
|
|
|
8,695
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic earnings per common share
|
$
|
0.35
|
|
|
$
|
0.31
|
|
|
$
|
0.68
|
|
|
$
|
0.63
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per common share
|
$
|
0.35
|
|
|
$
|
0.30
|
|
|
$
|
0.67
|
|
|
$
|
0.61
|
|
(In Thousands)
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
June 30, 2019:
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Government agency securities
|
|
$
|
9,624
|
|
|
$
|
—
|
|
|
$
|
(116
|
)
|
|
$
|
9,508
|
|
Municipal securities
|
|
483
|
|
|
2
|
|
|
—
|
|
|
485
|
|
||||
U.S. Government-sponsored enterprises (“GSE”) – residential mortgage-backed securities
|
|
7,761
|
|
|
28
|
|
|
(75
|
)
|
|
7,714
|
|
||||
U.S. Government collateralized residential mortgage obligations
|
|
4,097
|
|
|
26
|
|
|
(146
|
)
|
|
3,977
|
|
||||
Corporate debt securities, primarily financial institutions
|
|
2,000
|
|
|
1
|
|
|
(81
|
)
|
|
1,920
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total securities available for sale
|
|
$
|
23,965
|
|
|
$
|
57
|
|
|
$
|
(418
|
)
|
|
$
|
23,604
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total equity securities
|
|
$
|
2,588
|
|
|
$
|
—
|
|
|
$
|
(40
|
)
|
|
$
|
2,548
|
|
|
|
|
|
|
|
|
|
|
||||||||
Securities held to maturity:
|
|
|
|
|
|
|
|
|
||||||||
Municipal securities
|
|
$
|
33,895
|
|
|
$
|
1,414
|
|
|
$
|
(1
|
)
|
|
$
|
35,308
|
|
GSE – Residential mortgage-backed securities
|
|
6,466
|
|
|
16
|
|
|
(14
|
)
|
|
6,468
|
|
||||
U.S. Government collateralized residential mortgage obligations
|
|
1,584
|
|
|
3
|
|
|
(11
|
)
|
|
1,576
|
|
||||
Corporate debt securities, primarily financial institutions
|
|
1,829
|
|
|
—
|
|
|
(131
|
)
|
|
1,698
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total securities held to maturity
|
|
$
|
43,774
|
|
|
$
|
1,433
|
|
|
$
|
(157
|
)
|
|
$
|
45,050
|
|
(In Thousands)
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2018:
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Government agency securities
|
|
$
|
11,800
|
|
|
$
|
5
|
|
|
$
|
(170
|
)
|
|
$
|
11,635
|
|
Municipal securities
|
|
487
|
|
|
—
|
|
|
—
|
|
|
487
|
|
||||
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
|
|
|
|
Available for Sale
|
|
Held to Maturity
|
||||||||||||
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Due in one year or less
|
|
$
|
4,250
|
|
|
$
|
4,248
|
|
|
$
|
3,744
|
|
|
$
|
3,754
|
|
Due in one year through five years
|
|
1,938
|
|
|
1,937
|
|
|
1,743
|
|
|
1,808
|
|
||||
Due in five years through ten years
|
|
4,363
|
|
|
4,282
|
|
|
6,916
|
|
|
7,072
|
|
||||
Due after ten years
|
|
1,556
|
|
|
1,446
|
|
|
23,321
|
|
|
24,372
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Sub-total
|
|
12,107
|
|
|
11,913
|
|
|
35,724
|
|
|
37,006
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
GSE – residential mortgage-backed securities
|
|
7,761
|
|
|
7,714
|
|
|
6,466
|
|
|
6,468
|
|
||||
U.S. Government collateralized residential mortgage obligations
|
|
4,097
|
|
|
3,977
|
|
|
1,584
|
|
|
1,576
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total
|
|
$
|
23,965
|
|
|
$
|
23,604
|
|
|
$
|
43,774
|
|
|
$
|
45,050
|
|
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
June 30, 2019:
|
|
(In Thousands)
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government agency securities
|
|
$
|
1,161
|
|
|
$
|
(9
|
)
|
|
$
|
8,347
|
|
|
$
|
(107
|
)
|
|
$
|
9,508
|
|
|
$
|
(116
|
)
|
Municipal securities
|
|
—
|
|
|
—
|
|
|
591
|
|
|
(1
|
)
|
|
591
|
|
|
(1
|
)
|
||||||
GSE – residential mortgage-backed securities
|
|
—
|
|
|
—
|
|
|
9,350
|
|
|
(89
|
)
|
|
9,350
|
|
|
(89
|
)
|
||||||
U.S. Government collateralized residential mortgage obligations
|
|
3
|
|
|
—
|
|
|
4,140
|
|
|
(157
|
)
|
|
4,143
|
|
|
(157
|
)
|
||||||
Corporate debt securities, primarily financial institutions
|
|
500
|
|
|
—
|
|
|
2,117
|
|
|
(212
|
)
|
|
2,617
|
|
|
(212
|
)
|
||||||
Total temporarily impaired securities
|
|
$
|
1,664
|
|
|
$
|
(9
|
)
|
|
$
|
24,545
|
|
|
$
|
(566
|
)
|
|
$
|
26,209
|
|
|
$
|
(575
|
)
|
|
|
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
|
)
|
1.
|
The loan’s observable market price;
|
2.
|
The fair value of the underlying collateral; or
|
3.
|
The present value (PV) of expected future cash flows.
|
1.
|
Changes in lending policy and procedures, including changes in underwriting standards and collection practices not previously considered in estimating credit losses.
|
2.
|
Changes in relevant economic and business conditions.
|
3.
|
Changes in nature and volume of the loan portfolio and in the terms of loans.
|
4.
|
Changes in experience, ability and depth of lending management and staff.
|
5.
|
Changes in the volume and severity of past due loans, the volume of non-accrual loans and the volume and severity of adversely classified loans.
|
6.
|
Changes in the quality of the loan review system.
|
7.
|
Changes in the value of underlying collateral for collateral-dependent loans.
|
8.
|
The existence and effect of any concentration of credit and changes in the level of such concentrations.
|
9.
|
The effect of other external forces such as competition, legal and regulatory requirements on the level of estimated credit losses in the existing portfolio.
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
2019
|
|
2018
|
||||
|
|
(In Thousands)
|
||||||
|
|
|
|
|
||||
Commercial and industrial
|
|
$
|
110,791
|
|
|
$
|
109,362
|
|
Real estate – construction
|
|
144,404
|
|
|
144,865
|
|
||
Real estate – commercial
|
|
574,660
|
|
|
552,549
|
|
||
Real estate – residential
|
|
92,829
|
|
|
84,123
|
|
||
Consumer
|
|
31,185
|
|
|
31,144
|
|
||
|
|
|
|
|
||||
|
|
953,869
|
|
|
922,043
|
|
||
Allowance for loan losses
|
|
(11,684
|
)
|
|
(11,398
|
)
|
||
Net unearned fees
|
|
(789
|
)
|
|
(742
|
)
|
||
|
|
|
|
|
||||
Net Loans
|
|
$
|
941,396
|
|
|
$
|
909,903
|
|
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
90 Days &
Greater
|
|
Total Past
Due
|
|
Current
|
|
Total Loans
Receivable
|
|
Loans
Receivable
>90 Days and
Accruing
|
||||||||||||||
June 30, 2019:
|
|
|
|
|
|
(In Thousands)
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
|
$
|
433
|
|
|
$
|
—
|
|
|
$
|
498
|
|
|
$
|
931
|
|
|
$
|
109,860
|
|
|
$
|
110,791
|
|
|
$
|
—
|
|
Real estate – construction
|
|
—
|
|
|
—
|
|
|
150
|
|
|
150
|
|
|
144,254
|
|
|
144,404
|
|
|
—
|
|
|||||||
Real estate – commercial
|
|
1,618
|
|
|
—
|
|
|
—
|
|
|
1,618
|
|
|
573,042
|
|
|
574,660
|
|
|
—
|
|
|||||||
Real estate – residential
|
|
—
|
|
|
—
|
|
|
505
|
|
|
505
|
|
|
92,324
|
|
|
92,829
|
|
|
—
|
|
|||||||
Consumer
|
|
88
|
|
|
41
|
|
|
193
|
|
|
322
|
|
|
30,863
|
|
|
31,185
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total
|
|
$
|
2,139
|
|
|
$
|
41
|
|
|
$
|
1,346
|
|
|
$
|
3,526
|
|
|
$
|
950,343
|
|
|
$
|
953,869
|
|
|
$
|
—
|
|
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
90 Days &
Greater
|
|
Total Past
Due
|
|
Current
|
|
Total Loans
Receivable
|
|
Loans
Receivable
>90 Days and
Accruing
|
||||||||||||||
December 31, 2018:
|
|
|
|
|
|
(In Thousands)
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
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
|
|
|
$
|
—
|
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
2019
|
|
2018
|
||||
|
|
(In Thousands)
|
||||||
|
|
|
|
|
||||
Commercial and industrial
|
|
$
|
498
|
|
|
$
|
765
|
|
Real estate – construction
|
|
150
|
|
|
150
|
|
||
Real estate – commercial
|
|
—
|
|
|
54
|
|
||
Real estate – residential
|
|
505
|
|
|
227
|
|
||
Consumer
|
|
193
|
|
|
194
|
|
||
|
|
|
|
|
||||
Total
|
|
$
|
1,346
|
|
|
$
|
1,390
|
|
|
|
As of June 30, 2019
|
|
For the three months ended June 30, 2019
|
|
For the six months ended June 30, 2019
|
||||||||||||||||||||||
|
|
Recorded
Investment,
Net of
Charge-offs
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||||||||
|
|
(In Thousands)
|
||||||||||||||||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
|
$
|
3,706
|
|
|
$
|
3,706
|
|
|
$
|
—
|
|
|
$
|
3,815
|
|
|
$
|
44
|
|
|
$
|
3,826
|
|
|
$
|
87
|
|
Real estate – construction
|
|
1,553
|
|
|
1,553
|
|
|
—
|
|
|
4,789
|
|
|
32
|
|
|
5,275
|
|
|
66
|
|
|||||||
Real estate – commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
108
|
|
|
1
|
|
|
134
|
|
|
2
|
|
|||||||
Real estate – residential
|
|
863
|
|
|
863
|
|
|
—
|
|
|
864
|
|
|
9
|
|
|
866
|
|
|
14
|
|
|||||||
Consumer
|
|
193
|
|
|
193
|
|
|
—
|
|
|
193
|
|
|
—
|
|
|
193
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Real estate – construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Real estate – commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Real estate – residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
|
$
|
3,706
|
|
|
$
|
3,706
|
|
|
$
|
—
|
|
|
$
|
3,815
|
|
|
$
|
44
|
|
|
$
|
3,826
|
|
|
$
|
87
|
|
Real estate – construction
|
|
1,553
|
|
|
1,553
|
|
|
—
|
|
|
4,789
|
|
|
32
|
|
|
5,275
|
|
|
66
|
|
|||||||
Real estate – commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
108
|
|
|
1
|
|
|
134
|
|
|
2
|
|
|||||||
Real estate – residential
|
|
863
|
|
|
863
|
|
|
—
|
|
|
864
|
|
|
9
|
|
|
866
|
|
|
14
|
|
|||||||
Consumer
|
|
193
|
|
|
193
|
|
|
—
|
|
|
193
|
|
|
—
|
|
|
193
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total
|
|
$
|
6,315
|
|
|
$
|
6,315
|
|
|
$
|
—
|
|
|
$
|
9,769
|
|
|
$
|
86
|
|
|
$
|
10,294
|
|
|
$
|
169
|
|
|
|
As of December 31, 2018
|
|
For the three months ended June 30, 2018
|
|
For the six months ended June 30, 2018
|
||||||||||||||||||||||
|
|
Recorded
Investment,
Net of
Charge-offs
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||||||||
|
|
(In Thousands)
|
||||||||||||||||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
|
$
|
4,200
|
|
|
$
|
4,200
|
|
|
$
|
—
|
|
|
$
|
3,099
|
|
|
$
|
33
|
|
|
$
|
3,150
|
|
|
$
|
67
|
|
Real estate – construction
|
|
3,082
|
|
|
3,082
|
|
|
—
|
|
|
3,135
|
|
|
34
|
|
|
3,140
|
|
|
67
|
|
|||||||
Real estate – commercial
|
|
168
|
|
|
168
|
|
|
—
|
|
|
302
|
|
|
1
|
|
|
318
|
|
|
3
|
|
|||||||
Real estate – residential
|
|
589
|
|
|
589
|
|
|
—
|
|
|
1,083
|
|
|
4
|
|
|
1,084
|
|
|
9
|
|
|||||||
Consumer
|
|
194
|
|
|
194
|
|
|
|
|
|
234
|
|
|
—
|
|
|
234
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
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
|
|
|
$
|
—
|
|
|
$
|
3,099
|
|
|
$
|
33
|
|
|
$
|
3,150
|
|
|
$
|
67
|
|
Real estate – construction
|
|
3,082
|
|
|
3,082
|
|
|
—
|
|
|
3,135
|
|
|
34
|
|
|
3,140
|
|
|
67
|
|
|||||||
Real estate – commercial
|
|
168
|
|
|
168
|
|
|
—
|
|
|
302
|
|
|
1
|
|
|
318
|
|
|
3
|
|
|||||||
Real estate – residential
|
|
589
|
|
|
589
|
|
|
—
|
|
|
1,083
|
|
|
4
|
|
|
1,084
|
|
|
9
|
|
|||||||
Consumer
|
|
194
|
|
|
194
|
|
|
|
|
|
234
|
|
|
—
|
|
|
234
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total
|
|
$
|
8,233
|
|
|
$
|
8,233
|
|
|
$
|
—
|
|
|
$
|
7,853
|
|
|
$
|
72
|
|
|
$
|
7,926
|
|
|
$
|
146
|
|
|
|
Pass
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
|
|
(In Thousands)
|
||||||||||||||||||
June 30, 2019:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
$
|
106,509
|
|
|
$
|
109
|
|
|
$
|
4,173
|
|
|
$
|
—
|
|
|
$
|
110,791
|
|
Real estate – construction
|
|
142,851
|
|
|
—
|
|
|
1,553
|
|
|
—
|
|
|
144,404
|
|
|||||
Real estate – commercial
|
|
573,212
|
|
|
898
|
|
|
550
|
|
|
—
|
|
|
574,660
|
|
|||||
Real estate – residential
|
|
92,324
|
|
|
—
|
|
|
505
|
|
|
—
|
|
|
92,829
|
|
|||||
Consumer
|
|
30,828
|
|
|
—
|
|
|
357
|
|
|
—
|
|
|
31,185
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total
|
|
$
|
945,724
|
|
|
$
|
1,007
|
|
|
$
|
7,138
|
|
|
$
|
—
|
|
|
$
|
953,869
|
|
|
|
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
|
|
|
|
Allowance for Loan Losses
|
|
Loans Receivable
|
||||||||||||||||||||
|
|
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)
|
|
|
|
|
||||||||||||||
June 30, 2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
|
$
|
766
|
|
|
$
|
—
|
|
|
$
|
766
|
|
|
$
|
110,791
|
|
|
$
|
3,705
|
|
|
$
|
107,086
|
|
Real estate – construction
|
|
2,129
|
|
|
—
|
|
|
2,129
|
|
|
144,404
|
|
|
1,553
|
|
|
142,851
|
|
||||||
Real estate – commercial
|
|
7,464
|
|
|
—
|
|
|
7,464
|
|
|
574,660
|
|
|
—
|
|
|
574,660
|
|
||||||
Real estate – residential
|
|
736
|
|
|
—
|
|
|
736
|
|
|
92,829
|
|
|
863
|
|
|
91,966
|
|
||||||
Consumer
|
|
150
|
|
|
—
|
|
|
150
|
|
|
31,185
|
|
|
194
|
|
|
30,991
|
|
||||||
Unallocated
|
|
439
|
|
|
—
|
|
|
439
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total
|
|
$
|
11,684
|
|
|
$
|
—
|
|
|
$
|
11,684
|
|
|
$
|
953,869
|
|
|
$
|
6,315
|
|
|
$
|
947,554
|
|
|
|
Allowance for Loan Losses
|
|
Loans Receivable
|
||||||||||||||||||||
|
|
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)
|
|
|
|
|
||||||||||||||
December 31, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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 |
|
Commercial
and Industrial |
|
Real Estate -
Construction |
|
Real Estate -
Commercial |
|
Real Estate -
Residential |
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||
Beginning balance, April 1, 2019
|
|
$
|
773
|
|
|
$
|
2,011
|
|
|
$
|
7,487
|
|
|
$
|
711
|
|
|
$
|
135
|
|
|
$
|
465
|
|
|
$
|
11,582
|
|
Charge-offs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|||||||
Provision
|
|
(7
|
)
|
|
118
|
|
|
(23
|
)
|
|
25
|
|
|
13
|
|
|
(26
|
)
|
|
100
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Ending balance, June 30, 2019
|
|
$
|
766
|
|
|
$
|
2,129
|
|
|
$
|
7,464
|
|
|
$
|
736
|
|
|
$
|
150
|
|
|
$
|
439
|
|
|
$
|
11,684
|
|
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, 2019
|
|
$
|
745
|
|
|
$
|
2,049
|
|
|
$
|
7,283
|
|
|
$
|
668
|
|
|
$
|
147
|
|
|
$
|
506
|
|
|
$
|
11,398
|
|
Charge-offs
|
|
—
|
|
|
(242
|
)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(247
|
)
|
|||||||
Recoveries
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
8
|
|
|||||||
Provision
|
|
21
|
|
|
322
|
|
|
177
|
|
|
68
|
|
|
4
|
|
|
(67
|
)
|
|
525
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Ending balance, June 30, 2019
|
|
$
|
766
|
|
|
$
|
2,129
|
|
|
$
|
7,464
|
|
|
$
|
736
|
|
|
$
|
150
|
|
|
$
|
439
|
|
|
$
|
11,684
|
|
Allowance for Loan
Losses
|
|
Commercial
and
Industrial
|
|
Real Estate -
Construction
|
|
Real Estate -
Commercial
|
|
Real Estate -
Residential
|
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||
Beginning balance, April 1, 2018
|
|
$
|
967
|
|
|
$
|
1,489
|
|
|
$
|
7,385
|
|
|
$
|
499
|
|
|
$
|
156
|
|
|
$
|
466
|
|
|
$
|
10,962
|
|
Charge-offs
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|||||||
Recoveries
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
26
|
|
|||||||
Provision
|
|
9
|
|
|
83
|
|
|
136
|
|
|
21
|
|
|
(23
|
)
|
|
(1
|
)
|
|
225
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Ending balance, June 30, 2018
|
|
$
|
976
|
|
|
$
|
1,572
|
|
|
$
|
7,515
|
|
|
$
|
520
|
|
|
$
|
153
|
|
|
$
|
465
|
|
|
$
|
11,201
|
|
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
|
|
—
|
|
|
3
|
|
|
13
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
36
|
|
|||||||
Provision
|
|
162
|
|
|
180
|
|
|
189
|
|
|
18
|
|
|
(41
|
)
|
|
117
|
|
|
625
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Ending balance, June 30, 2018
|
|
$
|
976
|
|
|
$
|
1,572
|
|
|
$
|
7,515
|
|
|
$
|
520
|
|
|
$
|
153
|
|
|
$
|
465
|
|
|
$
|
11,201
|
|
(In thousands, except percentages and years)
|
June 30, 2019
|
||
Right-of-use asset
|
$
|
5,004
|
|
Weighted remaining lease term in years
|
4.3
|
|
|
Weighted average discount rate
|
4.30
|
%
|
(In thousands)
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||
|
2019
|
2018
|
|
2019
|
|
2018
|
|
||||||
Operating cash flows from operating leases
|
$
|
384
|
|
$
|
370
|
|
|
$
|
754
|
|
$
|
740
|
|
Variable lease costs
(1)
|
$
|
92
|
|
$
|
80
|
|
|
$
|
177
|
|
$
|
168
|
|
(In thousands)
|
|
||
Twelve months ended June 30,
|
|
||
2020
|
$
|
1,466
|
|
2021
|
1,404
|
|
|
2022
|
1,162
|
|
|
2023
|
742
|
|
|
2024
|
452
|
|
|
Thereafter
|
411
|
|
|
Total Lease Payments
|
$
|
5,637
|
|
Interest
|
(500
|
)
|
|
Present Value of Lease Liabilities
|
$
|
5,137
|
|
|
|
Number of Shares
|
|
Weighted
Average
Price
|
|
Weighted
Average
Remaining
Contractual
Life (years)
|
|
Aggregate
Intrinsic
Value
|
|||||
Options outstanding, December 31, 2018
|
|
242,533
|
|
|
$
|
5.89
|
|
|
|
|
|
|
|
Options granted
|
|
—
|
|
|
—
|
|
|
|
|
|
|
||
Options exercised
|
|
(58,765
|
)
|
|
4.16
|
|
|
|
|
|
|
||
Options forfeited
|
|
(368
|
)
|
|
8.68
|
|
|
|
|
|
|
||
Options outstanding, June 30, 2019
|
|
183,400
|
|
|
$
|
6.44
|
|
|
3.88
|
|
$
|
1,450,151
|
|
Options exercisable, June 30, 2019
|
|
163,589
|
|
|
$
|
6.13
|
|
|
3.59
|
|
$
|
1,346,741
|
|
Option exercise price range at June 30, 2019
|
|
$2.87 to $11.21
|
|
|
|
|
|
|
|
|
|
Number of Shares
|
|
Weighted
Average Price |
|||
Unvested at December 31, 2018
|
|
68,040
|
|
|
$
|
15.61
|
|
Restricted stock earned
|
|
(13,714
|
)
|
|
15.10
|
|
|
Granted
|
|
21,150
|
|
|
15.28
|
|
|
Awards forfeited
|
|
(400
|
)
|
|
15.10
|
|
|
Unvested at June 30, 2019
|
|
75,076
|
|
|
$
|
15.62
|
|
|
June 30, 2019
|
|
December 31, 2018
|
|
Rate
|
|
Original Term
(Years)
|
|
Maturity
|
|||||
|
(dollars in thousands)
|
|
|
|
|
|
|
|||||||
Fixed Rate Note
|
$
|
—
|
|
|
$
|
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
|
7,500
|
|
|
7,500
|
|
|
2.07
|
%
|
|
5
|
|
August 2022
|
||
Fixed Rate Note
|
1,000
|
|
|
1,000
|
|
|
1.70
|
%
|
|
7
|
|
July 2023
|
||
Fixed Rate Note
|
5,000
|
|
|
5,000
|
|
|
2.16
|
%
|
|
4
|
|
October 2021
|
||
|
|
|
|
|
|
|
|
|
|
|||||
Total FHLB borrowings
|
$
|
20,700
|
|
|
$
|
22,500
|
|
|
|
|
|
|
|
|
|
|
Maturity of Repurchase Agreements
|
||||||||||||||||||
(dollars in thousands)
|
|
Overnight
and
Continuous
|
|
Up to
30 days
|
|
30 to 90
days
|
|
Over 90
days
|
|
Total
|
||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Class of Collateral Pledged:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government agency securities
|
|
$
|
8,142
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,142
|
|
GSE – residential mortgage-backed securities
|
|
3,907
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,907
|
|
|||||
U.S. Government collateralized residential mortgage obligations
|
|
7,366
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,366
|
|
|||||
Total
|
|
$
|
19,415
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
19,415
|
|
Gross amount of recognized liabilities for repurchase agreements and securities lending
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
14,162
|
|
||||
Excess of collateral pledged over recognized liability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,253
|
|
|
|
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
|
|
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
|
|
•
|
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
June 30, 2019
, the discount range and liquidation expenses for collateral adjustments to OREO ranged from
6.69%
to
25.46%
(weighted average of
8.00%
). At December 31, 2018, the discount and liquidation expenses for collateral adjustments to our OREO was
9.5%
. At
June 30, 2019
, OREO totaled
$2.9 million
consisting of three properties, one of which was acquired by deed in lieu of foreclosure, while the remaining two were acquired through foreclosure proceedings. All properties are carried at fair value less estimated selling costs based on current appraisals. These assets are included in Level 3 fair value based upon the lowest level
|
|
Fair Value Measurements at June 30, 2019
|
||||||||||||||||||
(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
|
$
|
70,040
|
|
|
$
|
70,040
|
|
|
$
|
70,040
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities available for sale
|
23,604
|
|
|
23,604
|
|
|
—
|
|
|
23,604
|
|
|
—
|
|
|||||
Securities held to maturity
|
43,774
|
|
|
45,050
|
|
|
—
|
|
|
45,050
|
|
|
—
|
|
|||||
Equity securities
|
2,548
|
|
|
2,548
|
|
|
2,548
|
|
|
—
|
|
|
—
|
|
|||||
Restricted investments
|
6,447
|
|
|
6,447
|
|
|
—
|
|
|
—
|
|
|
6,447
|
|
|||||
Loans held for sale
|
1,093
|
|
|
1,120
|
|
|
—
|
|
|
—
|
|
|
1,120
|
|
|||||
Loans receivable, net
|
941,396
|
|
|
944,725
|
|
|
—
|
|
|
—
|
|
|
944,725
|
|
|||||
Accrued interest receivable
|
2,929
|
|
|
2,929
|
|
|
—
|
|
|
650
|
|
|
2,279
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
972,592
|
|
|
973,309
|
|
|
—
|
|
|
973,309
|
|
|
—
|
|
|||||
Securities sold under agreements to repurchase
|
14,162
|
|
|
14,162
|
|
|
—
|
|
|
14,162
|
|
|
—
|
|
|||||
FHLB and other borrowings
|
20,700
|
|
|
20,657
|
|
|
—
|
|
|
20,657
|
|
|
—
|
|
|||||
Subordinated debt
|
9,942
|
|
|
10,118
|
|
|
—
|
|
|
10,118
|
|
|
—
|
|
|||||
Accrued interest payable
|
94
|
|
|
94
|
|
|
—
|
|
|
94
|
|
|
—
|
|
|
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
|
|
|
—
|
|
|
24,966
|
|
|
—
|
|
|||||
Subordinated debt
|
9,923
|
|
|
9,999
|
|
|
—
|
|
|
9,999
|
|
|
—
|
|
|||||
Accrued interest payable
|
119
|
|
|
119
|
|
|
—
|
|
|
119
|
|
|
—
|
|
|
For the Three Months
Ended June 30,
|
|
For the Six Months
Ended June 30,
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Return on average assets
|
1.07
|
%
|
|
1.00
|
%
|
|
1.04
|
%
|
|
1.02
|
%
|
Return on average tangible assets (1)
|
1.08
|
%
|
|
1.02
|
%
|
|
1.05
|
%
|
|
1.04
|
%
|
Return on average shareholders' equity
|
10.18
|
%
|
|
9.67
|
%
|
|
9.89
|
%
|
|
9.87
|
%
|
Return on average tangible shareholders' equity (1)
|
11.98
|
%
|
|
11.57
|
%
|
|
11.66
|
%
|
|
11.84
|
%
|
Net interest margin
|
3.54
|
%
|
|
3.59
|
%
|
|
3.57
|
%
|
|
3.61
|
%
|
Average equity to average assets
|
10.47
|
%
|
|
10.33
|
%
|
|
10.49
|
%
|
|
10.31
|
%
|
Average tangible equity to average tangible assets (1)
|
9.03
|
%
|
|
8.78
|
%
|
|
9.04
|
%
|
|
8.74
|
%
|
(in thousands except per share data and percentages)
|
For the Three Months
Ended June 30,
|
For the Six Months
Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
2019
|
|
2018
|
||||||||
Total shareholders' equity
|
$
|
121,416
|
|
|
$
|
111,347
|
|
$
|
121,416
|
|
|
$
|
111,347
|
|
Less: goodwill and other intangible assets
|
(18,109
|
)
|
|
(18,109
|
)
|
(18,109
|
)
|
|
(18,109
|
)
|
||||
Tangible common shareholders’ equity
|
$
|
103,307
|
|
|
$
|
93,238
|
|
$
|
103,307
|
|
|
$
|
93,238
|
|
|
|
|
|
|
|
|
||||||||
Common shares outstanding (in thousands)
|
8,657
|
|
|
8,555
|
|
8,657
|
|
|
8,555
|
|
||||
Book value per common share
|
$
|
14.03
|
|
|
$
|
13.02
|
|
$
|
14.03
|
|
|
$
|
13.02
|
|
|
|
|
|
|
|
|
||||||||
Book value per common share
|
$
|
14.03
|
|
|
$
|
13.02
|
|
$
|
14.03
|
|
|
$
|
13.02
|
|
Effect of intangible assets
|
(2.10
|
)
|
|
(2.12
|
)
|
(2.10
|
)
|
|
(2.12
|
)
|
||||
Tangible book value per common share
|
$
|
11.93
|
|
|
$
|
10.90
|
|
$
|
11.93
|
|
|
$
|
10.90
|
|
|
|
|
|
|
|
|
||||||||
Return on average assets
|
1.07
|
%
|
|
1.00
|
%
|
1.04
|
%
|
|
1.02
|
%
|
||||
Effect of intangible assets
|
0.01
|
%
|
|
0.02
|
%
|
0.01
|
%
|
|
0.02
|
%
|
||||
Return on average tangible assets
|
1.08
|
%
|
|
1.02
|
%
|
1.05
|
%
|
|
1.04
|
%
|
||||
|
|
|
|
|
|
|
||||||||
Return on average equity
|
10.18
|
%
|
|
9.67
|
%
|
9.89
|
%
|
|
9.87
|
%
|
||||
Effect of average intangible assets
|
1.80
|
%
|
|
1.90
|
%
|
1.77
|
%
|
|
1.97
|
%
|
||||
Return on average tangible equity
|
11.98
|
%
|
|
11.57
|
%
|
11.66
|
%
|
|
11.84
|
%
|
||||
|
|
|
|
|
|
|
||||||||
Average equity to average assets
|
10.47
|
%
|
|
10.33
|
%
|
10.49
|
%
|
|
10.31
|
%
|
||||
Effect of average intangible assets
|
(1.44
|
)%
|
|
(1.55
|
)%
|
(1.45
|
)%
|
|
(1.57
|
)%
|
||||
Average tangible equity to average tangible assets
|
9.03
|
%
|
|
8.78
|
%
|
9.04
|
%
|
|
8.74
|
%
|
|
|
Three Months Ended June 30, 2019
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||
(dollars in thousands)
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Average
Yield/
Rate
|
|
Average
Balance |
|
Interest
Income/ Expense |
|
Average
Yield/ Rate |
|||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Interest Earning Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Interest-bearing deposits in banks
|
$
|
34,679
|
|
|
$
|
216
|
|
|
2.50
|
%
|
|
$
|
21,206
|
|
|
$
|
94
|
|
|
1.78
|
%
|
|
Investment securities
|
77,409
|
|
|
532
|
|
|
2.75
|
%
|
|
95,801
|
|
|
570
|
|
|
2.38
|
%
|
||||
|
Loans, net of unearned fees (1) (2)
|
956,225
|
|
|
11,731
|
|
|
4.92
|
%
|
|
884,450
|
|
|
10,243
|
|
|
4.64
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total Interest-Earning Assets
|
1,068,313
|
|
|
12,479
|
|
|
4.69
|
%
|
|
1,001,457
|
|
|
10,907
|
|
|
4.37
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-Interest-Earning Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Allowance for loan losses
|
(11,703
|
)
|
|
|
|
|
|
(11,108
|
)
|
|
|
|
|
||||||||
|
All other assets
|
90,796
|
|
|
|
|
|
|
74,616
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total Assets
|
$
|
1,147,406
|
|
|
|
|
|
|
$
|
1,064,965
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES & STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Interest-Bearing Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
NOW deposits
|
$
|
212,267
|
|
|
422
|
|
|
0.80
|
%
|
|
$
|
220,421
|
|
|
306
|
|
|
0.56
|
%
|
||
|
Savings deposits
|
250,489
|
|
|
636
|
|
|
1.02
|
%
|
|
262,379
|
|
|
494
|
|
|
0.76
|
%
|
||||
|
Money market deposits
|
38,682
|
|
|
20
|
|
|
0.21
|
%
|
|
53,393
|
|
|
23
|
|
|
0.17
|
%
|
||||
|
Time deposits
|
293,333
|
|
|
1,693
|
|
|
2.32
|
%
|
|
188,862
|
|
|
818
|
|
|
1.74
|
%
|
||||
|
Securities sold under agreements to repurchase
|
13,325
|
|
|
9
|
|
|
0.27
|
%
|
|
21,190
|
|
|
15
|
|
|
0.28
|
%
|
||||
|
FHLB and other borrowings
|
20,713
|
|
|
101
|
|
|
1.96
|
%
|
|
24,503
|
|
|
116
|
|
|
1.90
|
%
|
||||
|
Subordinated debt
|
9,939
|
|
|
166
|
|
|
6.68
|
%
|
|
9,902
|
|
|
165
|
|
|
6.67
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total Interest-Bearing Liabilities
|
838,748
|
|
|
3,047
|
|
|
1.46
|
%
|
|
780,650
|
|
|
1,937
|
|
|
1.00
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-Interest-Bearing Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Demand deposits
|
172,962
|
|
|
|
|
|
|
165,416
|
|
|
|
|
|
||||||||
|
Other liabilities
|
15,566
|
|
|
|
|
|
|
8,925
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total Non-Interest-Bearing Liabilities
|
188,528
|
|
|
|
|
|
|
174,341
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholders' Equity
|
120,130
|
|
|
|
|
|
|
109,974
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total Liabilities and Stockholders' Equity
|
$
|
1,147,406
|
|
|
|
|
|
|
$
|
1,064,965
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NET INTEREST INCOME
|
|
|
$
|
9,432
|
|
|
|
|
|
|
$
|
8,970
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NET INTEREST SPREAD (3)
|
|
|
|
|
3.23
|
%
|
|
|
|
|
|
3.37
|
%
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NET INTEREST MARGIN (4)
|
|
|
|
|
3.54
|
%
|
|
|
|
|
|
3.59
|
%
|
(1)
|
Included in interest income on loans are net unearned 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 annualized net interest income by average interest-earning assets.
|
|
|
Six Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||
(dollars in thousands)
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Average
Yield/
Rate
|
|
Average
Balance |
|
Interest
Income/ Expense |
|
Average
Yield/ Rate |
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-Earning Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits in banks
|
|
$
|
32,368
|
|
|
$
|
403
|
|
|
2.51
|
%
|
|
$
|
19,679
|
|
|
$
|
161
|
|
|
1.65
|
%
|
Investment securities
|
|
78,316
|
|
|
1,102
|
|
|
2.81
|
%
|
|
96,708
|
|
|
1,149
|
|
|
2.38
|
%
|
||||
Loans, net of unearned fees (1) (2)
|
|
948,897
|
|
|
23,043
|
|
|
4.90
|
%
|
|
876,541
|
|
|
20,064
|
|
|
4.62
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Interest-Earning Assets
|
|
1,059,581
|
|
|
24,548
|
|
|
4.67
|
%
|
|
992,928
|
|
|
21,374
|
|
|
4.34
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-Interest-Earning Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses
|
|
(11,570
|
)
|
|
|
|
|
|
(10,974
|
)
|
|
|
|
|
||||||||
All other assets
|
|
85,502
|
|
|
|
|
|
|
73,756
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Assets
|
|
$
|
1,133,513
|
|
|
|
|
|
|
$
|
1,055,710
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-Bearing Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NOW deposits
|
|
$
|
208,976
|
|
|
835
|
|
|
0.81
|
%
|
|
$
|
228,502
|
|
|
616
|
|
|
0.54
|
%
|
||
Savings deposits
|
|
253,074
|
|
|
1,228
|
|
|
0.98
|
%
|
|
255,471
|
|
|
848
|
|
|
0.67
|
%
|
||||
Money market deposits
|
|
40,123
|
|
|
43
|
|
|
0.22
|
%
|
|
55,857
|
|
|
48
|
|
|
0.17
|
%
|
||||
Time deposits
|
|
275,070
|
|
|
3,083
|
|
|
2.26
|
%
|
|
178,651
|
|
|
1,487
|
|
|
1.68
|
%
|
||||
Securities sold under agreements to repurchase
|
|
14,431
|
|
|
20
|
|
|
0.28
|
%
|
|
20,417
|
|
|
29
|
|
|
0.29
|
%
|
||||
FHLB and other borrowings
|
|
23,198
|
|
|
233
|
|
|
2.02
|
%
|
|
26,349
|
|
|
246
|
|
|
1.88
|
%
|
||||
Subordinated debt
|
|
9,934
|
|
|
331
|
|
|
6.66
|
%
|
|
9,898
|
|
|
330
|
|
|
6.67
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Interest-Bearing Liabilities
|
|
824,806
|
|
|
5,773
|
|
|
1.41
|
%
|
|
775,145
|
|
|
3,604
|
|
|
0.94
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-Interest-Bearing Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand deposits
|
|
173,950
|
|
|
|
|
|
|
162,753
|
|
|
|
|
|
||||||||
Other liabilities
|
|
15,820
|
|
|
|
|
|
|
8,981
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Non-Interest-Bearing Liabilities
|
|
189,770
|
|
|
|
|
|
|
171,734
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholders' Equity
|
|
118,937
|
|
|
|
|
|
|
108,831
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Liabilities and Shareholders' Equity
|
|
$
|
1,133,513
|
|
|
|
|
|
|
$
|
1,055,710
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NET INTEREST INCOME
|
|
|
|
$
|
18,775
|
|
|
|
|
|
|
$
|
17,770
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NET INTEREST SPREAD (3)
|
|
|
|
|
|
3.26
|
%
|
|
|
|
|
|
3.40
|
%
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NET INTEREST MARGIN (4)
|
|
|
|
|
|
3.57
|
%
|
|
|
|
|
|
3.61
|
%
|
(1)
|
Included in interest income on loans are net unearned 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 annualized net interest income by average interest-earnings assets.
|
|
Three Months Ended June 30, 2019
Compared to Three Months Ended
June 30, 2018
|
|
Six Months Ended June 30, 2019
Compared to Six Months Ended
June 30, 2018
|
||||||||||||||||||||
|
Increase (decrease) due to change in
|
|
Increase (decrease) due to change in
|
||||||||||||||||||||
|
Volume
|
|
Rate
|
|
Net
|
|
Volume
|
|
Rate
|
|
Net
|
||||||||||||
|
(in thousands)
|
|
(in thousands)
|
||||||||||||||||||||
Interest Earned On:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing deposits in banks
|
$
|
60
|
|
|
$
|
62
|
|
|
$
|
122
|
|
|
$
|
104
|
|
|
$
|
138
|
|
|
$
|
242
|
|
Investment securities
|
(109
|
)
|
|
71
|
|
|
(38
|
)
|
|
(219
|
)
|
|
172
|
|
|
(47
|
)
|
||||||
Loans, net of unearned fees
|
830
|
|
|
658
|
|
|
1,488
|
|
|
1,657
|
|
|
1,322
|
|
|
2,979
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Interest Income
|
781
|
|
|
791
|
|
|
1,572
|
|
|
1,542
|
|
|
1,632
|
|
|
3,174
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest Paid On:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
NOW deposits
|
(11
|
)
|
|
127
|
|
|
116
|
|
|
(53
|
)
|
|
272
|
|
|
219
|
|
||||||
Savings deposits
|
(21
|
)
|
|
163
|
|
|
142
|
|
|
(8
|
)
|
|
388
|
|
|
380
|
|
||||||
Money market deposits
|
(6
|
)
|
|
3
|
|
|
(3
|
)
|
|
(14
|
)
|
|
9
|
|
|
(5
|
)
|
||||||
Time deposits
|
429
|
|
|
446
|
|
|
875
|
|
|
762
|
|
|
834
|
|
|
1,596
|
|
||||||
Securities sold under agreements to repurchase
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
||||||
FHLB and other borrowings
|
(18
|
)
|
|
3
|
|
|
(15
|
)
|
|
(29
|
)
|
|
16
|
|
|
(13
|
)
|
||||||
Subordinated debt
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Interest Expense
|
368
|
|
|
742
|
|
|
1,110
|
|
|
650
|
|
|
1,519
|
|
|
2,169
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net Interest Income
|
$
|
413
|
|
|
$
|
49
|
|
|
$
|
462
|
|
|
$
|
892
|
|
|
$
|
113
|
|
|
$
|
1,005
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||
|
|
(in thousands, except for percentages)
|
||||||||||||
Commercial and industrial
|
|
$
|
110,791
|
|
|
11.6
|
%
|
|
$
|
109,362
|
|
|
11.9
|
%
|
Real estate – construction
|
|
144,404
|
|
|
15.2
|
%
|
|
144,865
|
|
|
15.7
|
%
|
||
Real estate – commercial
|
|
574,660
|
|
|
60.3
|
%
|
|
552,549
|
|
|
60.0
|
%
|
||
Real estate – residential
|
|
92,829
|
|
|
9.7
|
%
|
|
84,123
|
|
|
9.1
|
%
|
||
Consumer
|
|
31,185
|
|
|
3.3
|
%
|
|
31,144
|
|
|
3.4
|
%
|
||
Unearned fees
|
|
(789
|
)
|
|
(0.1
|
)%
|
|
(742
|
)
|
|
(0.1
|
)%
|
||
Total loans
|
|
$
|
953,080
|
|
|
100.0
|
%
|
|
$
|
921,301
|
|
|
100.0
|
%
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
|
(dollars in thousands)
|
||||||
Non-Performing Assets:
|
|
|
|
|
||||
|
|
|
|
|
||||
Non-Accrual Loans:
|
|
|
|
|
||||
Commercial and industrial
|
|
$
|
498
|
|
|
$
|
765
|
|
Real estate-construction
|
|
150
|
|
|
150
|
|
||
Real estate-commercial
|
|
—
|
|
|
54
|
|
||
Real estate-residential
|
|
505
|
|
|
227
|
|
||
Consumer
|
|
193
|
|
|
194
|
|
||
|
|
|
|
|
||||
Total Non-Performing Loans
|
|
1,346
|
|
|
1,390
|
|
||
|
|
|
|
|
||||
OREO
|
|
2,912
|
|
|
585
|
|
||
|
|
|
|
|
||||
Total Non-Performing Assets
|
|
$
|
4,258
|
|
|
$
|
1,975
|
|
|
|
|
|
|
||||
Ratios:
|
|
|
|
|
||||
Non-Performing loans to total loans
|
|
0.14
|
%
|
|
0.15
|
%
|
||
Non-Performing assets to total assets
|
|
0.37
|
%
|
|
0.18
|
%
|
||
|
|
|
|
|
||||
Troubled Debt Restructured Loans:
|
|
|
|
|
||||
Performing
|
|
$
|
4,969
|
|
|
$
|
6,842
|
|
Non-performing (included in non-performing assets above)
|
|
555
|
|
|
877
|
|
|
June 30,
|
|
December 31,
|
||||||||
|
2019
|
|
2018
|
|
2018
|
||||||
|
(in thousands, except percentages)
|
||||||||||
|
|
|
|
|
|
||||||
Balance at beginning of year
|
$
|
11,398
|
|
|
$
|
10,668
|
|
|
$
|
10,668
|
|
Provision charged to expense
|
525
|
|
|
625
|
|
|
775
|
|
|||
Recoveries (charge-offs), net
|
(239
|
)
|
|
(92
|
)
|
|
$
|
(45
|
)
|
||
Balance of allowance at end of period
|
$
|
11,684
|
|
|
$
|
11,201
|
|
|
$
|
11,398
|
|
|
|
|
|
|
|
||||||
Ratio of net charge-offs to average loans outstanding (annualized)
|
0.05
|
%
|
|
0.02
|
%
|
|
0.01
|
%
|
|||
Balance of allowance as a percent of loans at period-end
|
1.23
|
%
|
|
1.26
|
%
|
|
1.24
|
%
|
|||
Ratio of allowance to non-performing loans at period-end
|
868.05
|
%
|
|
580.36
|
%
|
|
820.00
|
%
|
|
June 30, 2019
|
|
December 31, 2018
|
|
Rate
|
|
Original Term
(years)
|
|
Maturity
|
|||||
|
(dollars in thousands)
|
|
|
|
|
|
|
|
||||||
Fixed Rate Note
|
$
|
—
|
|
|
$
|
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
|
7,500
|
|
|
7,500
|
|
|
2.07
|
%
|
|
5
|
|
August 2022
|
||
Fixed Rate Note
|
1,000
|
|
|
1,000
|
|
|
1.70
|
%
|
|
7
|
|
July 2023
|
||
Fixed Rate Note
|
5,000
|
|
|
5,000
|
|
|
2.16
|
%
|
|
4
|
|
October 2021
|
||
|
|
|
|
|
|
|
|
|
|
|||||
Total FHLB borrowings
|
$
|
20,700
|
|
|
$
|
22,500
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
||||
|
2019
|
|
2018
|
||||
|
(dollars in thousands)
|
||||||
Lines of credit secured by 1 - 4 family residential properties
|
$
|
29,237
|
|
|
$
|
25,828
|
|
Commitments to fund commercial real estate and construction loans
|
147,718
|
|
|
177,650
|
|
||
Commitments to fund commercial and industrial loans and other loans
|
58,112
|
|
|
60,579
|
|
||
Commercial and financial letters of credit
|
3,137
|
|
|
4,245
|
|
||
Total off-balance sheet commitments
|
$
|
238,204
|
|
|
$
|
268,302
|
|
|
|
Company
|
|
Bank
|
|
Minimum
Required For
Capital
Adequacy
Purposes
|
|
To Be Well
Capitalized
Under Prompt
Corrective
Action
Regulations*
|
||||
As of June 30, 2019
|
|
|
|
|
|
|
|
|
||||
Common Equity Tier 1 Capital to Risk Weighted Assets
|
|
10.24
|
%
|
|
11.16
|
%
|
|
4.50
|
%
|
|
6.50
|
%
|
Tier 1 Capital to Average Assets (Leverage Ratio)
|
|
9.17
|
%
|
|
9.99
|
%
|
|
4.00
|
%
|
|
5.00
|
%
|
Tier 1 Capital to Risk Weighted Assets
|
|
10.24
|
%
|
|
11.16
|
%
|
|
6.00
|
%
|
|
8.00
|
%
|
Total Capital to Risk Weighted Assets
|
|
12.39
|
%
|
|
12.31
|
%
|
|
8.00
|
%
|
|
10.00
|
%
|
|
|
|
|
|
|
|
|
|
||||
As of December 31, 2018
|
|
|
|
|
|
|
|
|
||||
Common Equity Tier 1 Capital to Risk Weighted Assets
|
|
10.14
|
%
|
|
11.09
|
%
|
|
4.50
|
%
|
|
6.50
|
%
|
Tier 1 Capital to Average Assets (Leverage Ratio)
|
|
9.10
|
%
|
|
9.95
|
%
|
|
4.00
|
%
|
|
5.00
|
%
|
Tier 1 Capital to Risk Weighted Assets
|
|
10.14
|
%
|
|
11.09
|
%
|
|
6.00
|
%
|
|
8.00
|
%
|
Total Capital to Risk Weighted Assets
|
|
12.34
|
%
|
|
12.26
|
%
|
|
8.00
|
%
|
|
10.00
|
%
|
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%.
|
Period
|
Total
Number of Shares Purchased |
Average
Price Paid Per Share ($) |
Total Number of
Shares Purchased as Part of Publicly Announced Plans or Programs |
Maximum
Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs ($) |
||||
|
|
|
|
|
||||
April 1, 2019 through April 30, 2019
|
—
|
|
—
|
|
—
|
|
2,000,000
|
|
May 1, 2019 through May 31, 2019
|
32,245
|
|
14.93
|
|
32,245
|
|
1,517,424
|
|
June 1, 2019 through June 30, 2019
|
—
|
|
—
|
|
—
|
|
1,517,424
|
|
Total
|
32,245
|
|
14.93
|
|
32,245
|
|
|
|
(1) All shares were repurchased under the Company’s share repurchase program, which was approved in January 2019 by the Board of Directors, pursuant to which the Company may repurchase up to $2.0 million of its common stock from January 1, 2019 to December 31, 2019.
|
**
|
Employment Agreement dated as of June 1, 2019 among TRB, TRCB and William D. Moss
|
|
|
|
|
**
|
Change in Control Agreement dated as of June 1, 2019 among TRB, TRCB and A. Richard Abrahamian
|
|
|
|
|
**
|
Change in Control Agreement dated as of June 1, 2019 among TRB, TRCB and Anthony A. Mero
|
|
|
|
|
**
|
Change in Control Agreement dated as of June 1, 2019 among TRB, TRCB and Alan B. Turner
|
|
|
|
|
*
|
Certification of principal executive officer of the Company pursuant to Securities Exchange Act Rule 13a-14(a)
|
|
|
|
|
*
|
Certification of principal financial officer of the Company pursuant to Securities Exchange Act Rule 13a-14(a)
|
|
|
|
|
*
|
Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of The Sarbanes-Oxley Act of 2002, signed by the principal executive officer of the Company and the principal financial officer of the Company
|
|
|
|
|
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
|
|
|
TWO RIVER BANCORP
|
|
|
|
|
|
|
|
|
|
|
|
|
Date:
|
August 7, 2019
|
By:
|
/s/ William D. Moss
|
|
|
|
|
William D. Moss
|
|
|
|
|
Chairman of the Board, President and Chief Executive Officer
|
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
|
|
|
|
Date:
|
August 7, 2019
|
By:
|
/s/ A. Richard Abrahamian
|
|
|
|
|
A. Richard Abrahamian
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
|
(Principal Financial and Accounting Officer)
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Two River Bancorp;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(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:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ William D. Moss
|
|
Name:
|
William D. Moss
|
Title:
|
Chairman of the Board, President and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Two River Bancorp;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(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:
|
(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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(b)
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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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(c)
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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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(d)
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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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5.
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The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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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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/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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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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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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Date:
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August 7, 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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Date:
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August 7, 2019
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